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How the circle and the squares get along
              Terms you need to know
              after this presentation…
• Federalism              • Dual Federalism
• Federalist #51          • Cooperative Federalism
• Delegated powers        • Grants-in-aid
• Reserved powers         • Categorical grant
• Concurrent powers       • Block grant
• Prohibited powers       • Mandate
• Elastic clause          • Devolution
• McCulloch v. Maryland   • Pros and cons of
• Commerce clause
• Gibbons v. Ogden
                 Disaster Relief
• Who‟s job was it to
  clean up New Orleans
  and the rest of the
  coast after Katrina?
               No Child Left Behind
• Should the national gov‟t step in to
  regulate school performance?
              What is Federalism?
• Federalism – Two or more governments
  exercise power and authority over the
  same people in the same territory
• OR… the relationship between the federal
  government (circle) and the state
  governments (squares)
                       Federalist #51
• Defends the Constitution
• Explains why a strong gov‟t is necessary
  – “If men were angels, no government would be
    necessary. If angels were to govern men, neither
    external nor internal controls on government would be
• Defends separation of powers between
  state and national gov’t
- Delegated Powers (enumerated powers) –
  powers given to Fed gov‟t by Constitution
- Reserved Powers – state power alone
- Concurrent Powers – shared
- Prohibited Powers – denied from both
  - Ex. Neither gov‟t can tax exports
                         Elastic Clause
• Aka – “Necessary and Proper Clause”
• Art. I, Sec. 8, Cl. 18 - "The Congress shall have Power -
  To make all Laws which shall be necessary and proper
  for carrying into Execution the foregoing Powers, and all
  other Powers vested by this Constitution in the
  Government of the United States, or in any Department
  or Officer thereof."
• Impossible to predict all powers Congress will
  need to function, sometimes we might have to
  allow Congress extra powers to fulfill their
  delegated powers
              McCulloch v. Maryland
• Bank of the US operated in Maryland
• Maryland did not want BoUS to operate in
  state, competition unwanted, unfair
• Maryland taxed the bank to put it out of
• McCulloch, BoUS employee, refused to
  pay the state tax
              McCulloch v. Maryland
• Is a Bank of the US Constitutional?
YES. The national gov‟t has certain implied
  powers that go beyond delegated powers.
  US needs a national bank for borrowing,
  lending, holding minted money, etc. All of
  which are delegated powers.
              McCulloch v. Maryland
Can a state tax the federal gov‟t?
 -NO. The federal gov‟t is supreme. Since
 the BoUS is constitutional, only the feds
 may tax it.

-John Marshall reaffirmed Supremacy
  Clause and Elastic Clause
-National (Federal) Gov gets STRONGER
                  Commerce clause
• Art. I, Sec. 8, Cl. 3 – „The Congress shall have
  power - To regulate commerce with foreign
  nations, and among the several states, and with
  the Indian tribes.”
• Congress has used the elastic clause to stretch
  this power
• What is commerce? “Buying and selling of
  goods and services.”
• Congress given the power to regulate commerce
  between foreign countries and US as well as
  state to state… they control business law.
                Gibbons v. Ogden
• 1824 – aka “The Steamboat Case”
• Ogden received a state licensed monopoly
  to run a ferry across the Hudson River
• Gibbons also saw the potential of the
  traffic between NJ and NY and obtained a
  federal license.
• Ogden sued saying he had the valid state
  license, even though Gibbons had US
                  Gibbons v. Ogden
Result – Gibbons wins
• Expanded national power in all areas of
  commerce law because nation overruled
  state in interstate trade issues
• Fed Gov‟t gets STRONGER
• All trade today is primarily controlled by
  national law
               Commerce Clause
• Who cares? Why is it important?
• Gibbons v. Ogden ruling makes a loop
  hole giving Congress power to take control
  over any issue involving the movement of
  people, or things
• Fed gov‟t power increased
              United States v. Lopez
• Commerce clause quiz!!!
• 1995 – “Gun Free School Zone” law
  banned possession of a firearm within
  1000 feet of a school, 12 year old Lopez
  carried a gun on to the property
• Declared law unconstitutional – “nothing to
  do with commerce” – carrying a weapon
  through a school zone is too much of a
  stretch for “commerce”
• LIMITED National government power
                    Gonzalez v. Raich
• Commerce clause quiz!!! Medicinal Marijuana
• Controlled Substance Act (1970) – US gov
  regulates the manufacture, importation,
  possession, and distribution of certain drugs
• Medicinal marijuana was legalized in California,
  but illegal to US government. Raich argued
  commerce clause should not take effect
  because 1) there was no business transactions
  and 2) there were no state border issues.
• Supreme Court ruled 6-3 against Raich saying
  that the federal government could trump state
  laws that permitted medicinal marijuana
                    2 Federalisms?
• OLD SCHOOL – Dual Federalism
  – Federal and state governments remain
    dominant in their separate spheres of
  – Gibbons v. Ogden proved life is not that
• NEW SCHOOL – Cooperative Federalism
  – State and Federal governments work together
    to solve complex problems
                 2 Federalisms

• Dual Federalism – Layer Cake

• Cooperative Federalism – Marble Cake
                Fiscal Federalism
• Fiscal means $
• Q – How do you get the states to do things
  they normally wouldn‟t do?
• A – Money
• Q – What is the answer to any question
  ever asked?
• A – Money
• Money paid from one level of government to
  another to be spent for a specific purpose
• Categorical Grants - target specific
  purposes and “strings attached.” (States
  receive funds if state raised age to 21 and
  lowered BAC to .08)
• Block Grants – given for broad, general
  purposes and allow more discretion on how
  the money is spent (ex. Welfare reform)
• A requirement that a state undertake an
  activity or provide a service
• Most apply to Civil Rights and the
• Often times the states or local gov‟ts have
  to pay the bill of the mandate set by
• 1986 – Asbestos Emergency Response Act,
  Handicapped Children‟s Protection Act
• 1988 – Drug-free Workplace Acts, Ocean
  Dumping Ban Act
• 1990 – Clean Air Act
• EX – Columbus, OH spends 23% of the city
  budget trying to meet environmental mandates
  (including testing for pesticides used on rice and
• EX – Public schools have to use Internet filtering
  or schools lose e-rate subsidies
                Change in Spending
• Shift towards Federal Gov‟t Spending

                  Federal   State   Local

          1929 17% 23% 60%
          1939 47% 23% 30%
          1960 64% 17% 19%
          1997 66% 19% 15%
• Devolution is the return of power to the
  state gov
• Idea is fueled by distrust of the federal gov
  and the desire to save money by reducing
  the size of the “bloated federal
                     Devolution Example
• Personal Responsibility and Work Opportunity
  Reconciliation Act of 1996
• Eliminated welfare and transferred the money to
  states as block grants
     • States received wide latitude on how to administer “workfare”
       but with the knowledge that Congress was counting on anti-
       poverty spending”
     • Strings attached: head of family must work or lose benefit;
       lifetime benefits limited to 5 years; unmarried mother < 18
       only receive $ if stay in school and live with adult; immigrants
       ineligible for 5 years
                Federalism is good
Living under 2 governments is great…
• Built on compromise, promotes unity
• Gov‟t duties can be split up
• Brings gov‟t closer to people
• Allows for state gov‟t to address issues in
  unique regions of the country
• Allows states to experiment with policy
  before enacting it at the federal level – Ex.
  Vermont‟s free health care for children
               Federalism is bad
Living under 2 governments is bad…
• States can impede progress of Nation
• States are unequal
• States have different policy
• Easier for states to be dominated by
  interest groups