Democracy Under Pressure

1
Democracy Under Pressure

• Chapter 3
• The Federal System

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The Federal System

• In 1995, Congress passed a law allowing states to
  determine their own speed limits.
  
• Many states increased their speeds to 70 miles
  per hour or more.
  
• Why were 55-mile-per-hour speed limits imposed?
• To save gas after oil shortages in the 1970s.
• Insurance industry studies say fewer highway
  deaths at lower speeds.
  
• Same law imposed penalties for not requiring
  motorcycle helmet rules and zero alcohol
  tolerance rules by withholding federal highway
  money.
• To get federal funds, states kept lower speeds
  until Congress changed the law in 1995.

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The Federal System

• The federal system.
• Federalism involves constitutional power-sharing
  between a national and regional (state) units of
  government, each having their own jurisdictions.
  
• Not every country has a federal system. For
  example, France uses a unitary system of
  government.
  
• The nation is divided into administrative units
  called departments, uniformly administered
  through Paris.
  
• All policies are set by a centralized government.

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The Federal System

• Although the national government exercises great
  power, it must share power with the states, which
  in turn exercise certain exclusive powers. For
  example, the Rodney King case of 1992.
• Rioting in Los Angeles erupted when an all-white
  jury acquitted white officers of savagely beating
  Rodney King, a black detainee.
  
• Police in Los Angeles were slow to respond, so
  the governor called out the California national
  guard.
  
• The president placed the national guard under
  federal control, and also sent federal agents and
  troops to put down the disturbance.

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The Federal System

• How power is to be shared in a federal system is
  the subject of continuing debate.
  
• The relationship among national, state, and local
  governments touches all lives. It affects the
  outputs of the political system.
  
• Federalism is one way to govern a complex nation
  and has become popular in the 20th century.
  
• By 1964, more than half of the world's land mass
  was governed by some form of federalism.
  
• Federal systems include Switzerland, Canada,
  Australia, Mexico, India, and Germany.
  
• Unitary systems include France, Israel, and South
  Africa.

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Democracy Under Pressure

• Federalism The Pros and Cons

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The Pros

• Federalism permits diversity and diffusion of
  power.
  
• Local governments, not remote bureaucracies, deal
  directly with local problems.
  
• System allows more levels of government and more
  opportunities for political participation.
  
• Because of diffusion and fragmentation, there is
  better protection for individual rights.

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The Pros

• Many units of government provide more avenues for
  innovation, experimentation, and problem-solving.
  Many of FDR's New Deal programs copied the
  states.
• It suits a large country with a very diverse
  population like the United States.

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The Cons

• Federalism permits some state and local areas to
  continue race discrimination (Southern school
  segregation).
  
• Under a federal system, special interests and
  certain localities may exercise considerable
  influence on the politics and economy of a state
  or locality.
• West Virginia is the second largest coal
  producer, yet pockets of poverty exist, due to
  several factors.
  
• Special interests-the auto industry or oil-often
  frustrate efforts to solve national problems.
  
• Local officials may understand local problems,
  but lack the skill and money of a federal
  government to solve problems sufficiently.

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The Cons

• Diversity makes national unity difficult and more
  costly to achieve.
  
• Law enforcement and justice may be unevenly
  applied among the states.

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Democracy Under Pressure

• The Checkerboard of Governments

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The Checkerboard of Governments

• Americans complain they are highly taxed by at
  least three levels of government-national, state,
  and local.
  
• The Census Bureau counted 87,576 governments.
• This includes 3,034 counties, 19,429
  municipalities, 16,504 townships, 13,506 school
  districts, and 35,052 special districts.
  
• Morton Grodzins says the federal analogy is not
  of a three-layered (federal, state, and local)
  cake, but a marble cake with all parts interlaced.

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Cooperation and Tension

• In a system of 87,504 governments, federalism is
  seen as a rivalry and a partnership.
  
• New York almost went into economic default in
  1975.
  
• President Ford declined to help, but later
  relented and Congress provided billions in loans,
  leaving a bitter and protracted political
  struggle.

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The Changing Federal Framework

• From the 19th century until 1937, the concept of
  dual federalism prevailed.
  
• This concept holds that the federal government
  and the states were seen as competitors.
  
• The Supreme Court became the referee.
• B. FDR's New Deal social programs changed the
  competitive relationship in dual federalism.
  
• Courts approved of New Deal programs that
  established social welfare and public works
  programs.

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The Changing Federal Framework

• Cooperative federalism emerged in which various
  levels of government are seen as related parts of
  a single governmental system, characterized by
  cooperation and shared functions.
• Michael D. Reagan says no wall of separation
  should exist between state and federal
  government. He says federal financial aid creates
  "a nationally dominated system of shared power
  and shared functions."

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The Changing Federal Framework

• LBJ called his innovative Great Society programs
  "creative federalism."
  
• Nixon launched "new federalism," which returned
  large chunks of federal taxes to the state and
  local governments.

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The Changing Federal Framework

• A new concept, regulatory federalism, requires
  the states to implement federal programs.
  
• Regulations dealing with the environment and
  other concerns created new requirements for
  states.
  
• The Clean Air Act of 1970 set federal standards
  for air quality.
  
• In the mid-1980s, President Reagan proposed that
  the states pick up more of the costs of welfare
  and other social programs. Congress did not
  approve.

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The Changing Federal Framework

• In 1996, the Republican-controlled Congress and
  President Clinton implemented a law to end the
  largest federal welfare program and turned the
  program over to the states. The federal
  government provides block grants to help finance
  state programs.
• Many state governors and local officials often
  complained that "unfunded mandates" placed the
  states under severe financial strain.
  
• Columbus, Ohio faced costs of 1 billion to
  comply with the Clean Water Act and the Safe
  Drinking Water Act.
  
• New York City officials estimated costs of 1.3
  billion to modify elevators and accommodate
  disabled persons.

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The Changing Federal Framework

• One goal of the Republicans' "Contract With
  America" was to restrict such unfunded mandates.
  
• The Unfunded Mandates Reform Act became law in
  1995, requiring Congress to fund mandates placed
  on the states unless a majority of the House and
  Senate voted not to do so. The law only applies
  to new legislation.
• In 2002, Congress passed the No Child Left Behind
  Act, with the goal of insuring that all students
  were proficient in reading and math.

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Democracy Under Pressure

• The Historical Basis of Federalism

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A Middle Ground

• James Madison wrote to George Washington, arguing
  that while the states could be completely
  independent, the creation of "one simple
  republic" would be "unattainable."
• The bargain struck at Philadelphia in 1787
  created the concept of a federal system, with its
  sharing of power by the states and national
  government.

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A Middle Ground

• There are a number of reasons why a stronger
  central government would have been unacceptable.
  
• Public opinion would not have permitted the
  adoption of a unitary form of government. Loyalty
  to the states was strong.
  
• The diversity of Americans-via regional
  interests, slow transportation, and great
  distances-worked against the establishment of a
  stronger central government.
• Federalism was seen as an effective device for
  distributing authority between states and the
  central government.

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A Tool for Nation Building

• The collapse of European colonial states after
  World War II confronted Asia and Africa with an
  urgent problem how to organize their new
  nations.
• Create a strong central government and exchange
  one form of imperialism for another.
  
• Unite in some kind of federation, permitting a
  semblance of self-governance.
  
• In the United States, federalism permits a
  disunited population to join a political union,
  but allows some room for the development of a
  national identity.

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Democracy Under Pressure

• The Constitutional Basis of Federalism

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Federal Powers Enumerated, Implied,
Inherent,and Concurrent

• The Constitution established a framework for the
  American federal system.
  
• Enumerated powers are specifically granted to the
  three branches of the federal government. For
  example, Congress has the power to coin money.
  
• Implied powers flow from the enumerated powers
  and the elastic clause to give Congress the power
  to make all laws "necessary and proper" in order
  to carry out its enumerated powers.

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Federal Powers Enumerated, Implied,
Inherent,and Concurrent

• The Supreme Court has also held that the federal
  government has some "inherent" powers that it may
  exercise simply because it exists as a
  government.
• One inherent power is the right to conduct
  foreign affairs.
  
• The Court ruled in the Curtiss-Wright case that
  the "war power" is an inherent power.
  
• The federal government and the states also have
  concurrent powers.
  
• One concurrent power is the power to tax, a power
  shared by both the federal and state
  governments.
  
• However, states cannot exercise powers belonging
  only to the federal government, nor can they take
  actions that conflict with the federal government.

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The Supreme Court as Umpire

• The Supreme Court serves as an arbiter in
  questions of state versus national power.
  
• At times, the Court supports states' rights, and
  at other times it has supported federal power.
  
• B. McCulloch v. Maryland (1819).
• Ruling by Chief Justice John Marshall established
  the doctrine of implied powers giving the federal
  government the steps to move beyond the language
  of the Constitution.

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The Supreme Court as Umpire

• At issue Can the state of Maryland level taxes
  against a federal institution? Can Congress
  create a bank?
  
• At stake What powers can be inferred by the
  federal government when invoking the "necessary
  and proper" clause?
  
• Marshall ruled that the Tenth Amendment did not
  prohibit the exercise of implied powers.

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The Supreme Court as Umpire

• Marshall also ruled against the state, arguing
  that their power to tax was an effort to destroy,
  so therefore, the Maryland law was
  unconstitutional.
• As Chief Justice, Marshall established the
  concepts of implied powers, broad construction of
  the Constitution, and national supremacy.

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The Division of Federal and State Power

• The Tenth Amendment seems to limit Congress to
  powers specifically enumerated and delegated to
  the federal government by the Constitution.
  
• In McCulloch, Chief Justice Marshall emphasized
  that the Tenth Amendment does not use the word
  "expressly" before the word "delegated."
  
• In 1789, James Madison and others blocked the
  attempt to limit federal powers to those
  "expressly" delegated.

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The Division of Federal and State Power

• Chief Justice Taney invoked the Tenth Amendment
  to protect the power of the states.
  
• Following World War I, the Court invoked the
  Tenth Amendment to invalidate a series of federal
  laws dealing with child labor and regulating
  industry and agriculture.
• In 1935, the National Industrial Recovery Act was
  declared unconstitutional.
  
• In 1937, the Court upheld the social security
  program and the National Labor Relations Act.
  
• In 1941, the Court upheld the Fair Labor
  Standards Act.

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The Division of Federal and State Power

• In 1976, the Court struck down a federal law
  extending federal minimum wage and maximum hour
  provisions to state and municipal workers.
  However, that ruling was overturned in 1985.
  That was struck down in 1985's Garcia v. San
  Antonio Metropolitan Transit Authority.
• In 1995, the Court struck down the Gun-Free
  School Zones Act by stating the Congress has
  exceeded its authority when it passed a law
  making it illegal to carry a gun within 1,000
  feet of a school.

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The Division of Federal and State Power

• In 1996, the Court ruled that Congress could
  require the states to negotiate over gambling
  casinos with Indian tribes.
  
• The Court also invalidated a key section of the
  Brady Law that required local sheriffs to check
  the backgrounds of gun buyers, declared states
  immune from lawsuits for violation of federal
  labor laws, struck down a key provision of the
  Violence Against Women Act (1994), and held that
  states need not respond to private complaints put
  to federal agencies.

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The Division of Federal and State Power

• Many state's rights advocates depend on the
  language of the Tenth Amendment for support.
  
• They view the Constitution as a compact among
  states.
  
• In can be argued that the national government is
  often viewed as representing the people, not just
  the states.
  
• The "supremacy clause" makes it clear that the
  Constitution and federal laws and treaties are
  the supreme law of the land, prevailing over any
  conflict with state laws and constitutions.

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The Division of Federal and State Power

• Among many restrictions, states are forbidden to
  make treaties, coin money, or pass bills of
  attainder or ex post facto laws.
  
• The Bill of Rights and the Fourteenth and
  Fifteenth amendments place further restrictions
  on the states.
  
• Local governments derive their powers from the
  state, so state limits apply to them as well.

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The Division of Federal and State Power

• Federal obligations to the states
• Guarantee a republican form of government to
  every state.
  
• Protect the states from invasion or domestic
  violence.
  
• Congress may admit new states
• Passing enabling legislation to admit new
  states.
  
• Permitting them to write a state constitution.
• Pass a joint resolution recognizing the new state.

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The Division of Federal and State Power

• Interstate Relations
• Full faith and credit States are required to
  give "full faith and credit" to the laws,
  records, and court decisions of another state.
  
• Normally means civil judgments made in a court in
  one state are expected to be recognized in
  another.
  
• However, marriages legal in one state might not
  be recognized by another state. Example the
  Williams v. North Carolina case,
  
• Privileges and immunities Citizens of each state
  are entitled to the privileges and immunities of
  citizens of the state they are currently in.
  
• States still discriminate. Example in-state and
  out-of-state tuition for college students.

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The Division of Federal and State Power

• Extradition Upon request, a governor in one
  state can hold a person accused of a crime in
  another state, pending the person's being
  returned to the original state for disposition of
  the case against him/her.
• Past governors have sometimes refused to
  extradite, especially in the cases of blacks who
  escaped from the South
  
• The Scottsboro case is another example.

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The Division of Federal and State Power

• Interstate compacts States may enter into
  agreements with other states only with the
  approval of Congress.
  
• One example The New York Port Authority, which
  allows New York and New Jersey to jointly operate
  three airports, Manhattan's bridges and tunnels,
  and the world's largest bus terminal.
• Interstate compacts are a useful tool for
  planning and cooperative development in bi-state
  metropolitan areas, especially in the 20th
  century.

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Democracy Under Pressure

• The Growth of Strong National Government

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The Rise of Big Government

• As society grew more complex, the need to manage
  that population has spurred the growth of the
  national government.
  
• The power to tax and spend for the general
  welfare have expanded.
  
• Many of the social welfare programs took place
  under FDR's New Deal in the 1930s and in the
  1960s under LBJ's Great Society.

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The Rise of Big Government

• "The Reagan revolution."
• Cut domestic spending in poverty programs like
  social welfare, food stamps, and housing
  subsidies for low-income people. The upshot the
  poor got poorer.
• Some confusion mounted regarding what was
  accomplished In many cases, the cuts were
  reductions in what might have been spent.
  
• Still, the impact was measurable Most of the
  budget cuts landed heavily on the poor.
  
• According to the Congressional Budget Office,
  incomes of the very rich rose 75 percent

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The Rise of Big Government

• Under House Speaker Newt Gingrich, Congress
  dismantled and modified many programs and shifted
  the bulk of the federal welfare program over to
  the states.
• Yet, the role of the national government is still
  debated. Many Americans still look to the
  national government to solve national problems.

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Big Government and Foreign Policy

• The responsibility of the federal government for
  the conduct of foreign affairs in the nuclear age
  has increased the size of the national
  government.
• In 2005, the budget for national defense is
  estimated at more than 407.7 billion (16.7
  percent of the federal budget).
  
• The State Department, CIA, and the National
  Security Agency have also increased in size.
  
• Even with the collapse of the Soviet Union and
  the lack of a military threat, defense spending
  remains high because defense industries provide
  jobs for many Americans.

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Democracy Under Pressure

• The Impact of Federalism on Government and
  Politics

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Federalism and Government

• Each state gets an equal number of senators,
  despite its size.
  
• House members are chosen in local districts. They
  constitute an informal delegation from each
  state.
  
• Federalism helps assure that the state and local
  court systems coincide with the federal system.
  
• Federalism encourages senatorial courtesy, in
  which the president consults with senators of his
  party in a state before making an appointment.
  
• The AFL-CIO, AMA, and ABA demonstrate that large
  interest groups also organize along federal lines.

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Federalism and American Politic

• Senator John Kerry of Massachusetts came from
  behind in the Iowa caucuses in January, defeating
  rivals Senator John Edwards of North Carolina and
  Governor Howard Dean of Vermont.
• As a rule, national political candidates achieve
  victory long before their party conventions.
  
• National political parties are organized along
  federal lines, as a federation of fifty state
  parties precariously held together by a national
  committee.

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Federalism and American Politic

• State political machinery takes on special
  importance in building state parties and
  potential national leaders.
  
• State political systems vary greatly in some
  states, there is lively competition, but in
  others, one party dominates. The quality of their
  performance also varies.

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Federalism and American Politic

• Policy outcomes in the states
• Does the nature of a political system in a state
  affect the types of public policies adopted in
  the state? In other words, do the politics of a
  state make a difference? Answers vary.
• States with large, two-party elections are likely
  to enact broad social welfare policies because
  both parties need the votes of the poor.
  
• Later studies show that socioeconomic factors,
  rather than political, seem to account for most
  of the differences in welfare expenditures and
  for differences in taxing, spending, and social
  services between states.

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Federalism and American Politic

• Another study concluded that if taxing and
  spending were measured in terms of their
  redistributive impact, then the politics of the
  state was more important than the economics.
• The federal system influences people's lives
  because the quality of the services provided by
  the states varies greatly.

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Democracy Under Pressure

• Federalism Today

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Federalism Today

• The Budget of the United States Government,
  Fiscal Year 2005 is a black-and-white volume the
  size of a telephone book and four-and-a-half
  inches thick.
• Federal aid to the states has increased every
  year since 1950, with an estimated 416.5 billion
  going to the states in fiscal year 2005.
  
• Categorical grants are also known as
  grants-in-aid. They are earmarked for specific
  purposes like Medicaid, pollution control,
  schools, and hospitals.
• Block grants are used for community development.
• General purpose grants may be used by states and
  localities as they wish.

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Categorical Grants

• The bulk of federal aid comes as categorical
  grants-in-aid.
  
• This is money paid for specific purposes, as
  spelled out by law or administrative
  regulations.
  
• Typical grants were in the fields of education,
  pollution control, and Medicaid.

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Categorical Grants

• Requires state and local governments to meet
  matching requirements. That is, the recipients
  must put up some of their own funds in order to
  get federal funding.
• Requirements are determined by a formula that
  considers the ability of the state to pay Poor
  states pay less than rich states. However, all
  states pay the same matching share.

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Block Grants

• These are used broadly at the recipient's
  discretion.
  
• Major ones were community development, social
  services, health care, employment, and training
  and education.

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Where the Money Goes

• In fiscal 2005, an estimated 416.5 billion will
  be spent on states.
  
• Almost all will go to categories that include
  health, education and employment.
  
• Fiscal headaches in the federal system.
• State and local spending has increased at a
  faster rate than federal spending.
  
• Yet, the federal government collects 81 percent
  of the income tax, four times as much as the
  states.
  
• Local governments rely on real estate taxes, and
  states rely heavily on sales taxes, both of which
  grow less rapidly than the economy as a whole.

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Regulatory Federalism

• In the 1960s, regulatory laws were passed to
  impose strict standards on state and local
  governments.
  
• 1. Clean Water Act required cities to spend 120
  billion on building wastewater treatment plants.
  
• 2. Other examples Civil Rights Act (1964), the
  Highway Beautification Act (1965), and the
  Occupational Safety and Health Act (1970). Other
  programs deal with endangered species, clean
  water and air, education, employment, the
  disabled, and age discrimination.
• 3. Equal Employment Opportunity Act (1972) bars
  job discrimination on the basis of race,
  religion, sex, and national origin.

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Democracy Under Pressure

• The Future of Federalism

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The Future of Federalism

• The relationship between Washington, the state
  houses, and city halls has evolved over the
  years. Both conflict and cooperation remain.
  
• New ideas have been introduced
• Minnesota revamped a system of school aid to
  ensure equal funds for students, regardless of
  the wealth of the district.
  
• By the mid-1990s, two-thirds of the states and
  the District of Columbia had adopted a "circuit
  breaker" system of property-tax relief for
  low-income homeowners and the aged.
• The vast problems of metropolitan areas provide
  one of the greatest challenges to the federal
  system. More efforts are being made at developing
  new approaches.