democracy under pressure chapter 3 the federal system

Democracy Under Pressure

Chapter 3

The Federal System

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.

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.

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.

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.


Federalism: The Pros and Cons

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.

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.

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.

The Cons

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

among the states.


The Checkerboard of Governments

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.

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.

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.


– 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."


• 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.


• 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.


– 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.


– 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.


The Historical Basis of Federalism

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.

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.

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.


The Constitutional Basis of Federalism

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.

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.

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.


• 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.


• 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.

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.


• 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.


– 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.


– 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.


• 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.


• 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.


• 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.


• 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.


– 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.


– 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.


The Growth of Strong National Government

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.


• "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


• 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.

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.


The Impact of Federalism on Government and Politics

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.

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.


• 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.


• 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.


– 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.


Federalism Today

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.

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.

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.

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.

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.

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.


The Future of Federalism

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.

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