🏁State Politics and the American Federal System Unit 11 – Intergovernmental Relations & Mandates

What's This Unit All About?

• Intergovernmental relations (IGR) involve the complex interactions and relationships between different levels of government (federal, state, and local) in the US federal system
• Focuses on how power, responsibilities, and resources are shared, divided, and coordinated among these levels of government
• Explores the historical evolution of federalism in the US and how it has shaped the current system of intergovernmental relations
• Examines various types of intergovernmental relations, such as cooperative, competitive, and coercive federalism
• Discusses the role of mandates in the federal system, including unfunded mandates and their impact on state and local governments
• Analyzes funding mechanisms and fiscal federalism, including grants, revenue sharing, and the distribution of financial resources among levels of government
• Addresses challenges and controversies in intergovernmental relations, such as issues of autonomy, accountability, and the balance of power between levels of government
• Provides real-world examples and case studies to illustrate the practical implications of intergovernmental relations and mandates in the US federal system

Key Players in Intergovernmental Relations

• Federal government plays a significant role in IGR by setting national policies, providing funding, and issuing mandates that affect state and local governments
• State governments are crucial actors in IGR, as they have the power to implement federal policies, administer programs, and interact with local governments
• Local governments (counties, cities, and townships) are directly involved in IGR, as they often bear the responsibility of implementing federal and state policies and programs
• Intergovernmental organizations, such as the National Governors Association (NGA) and the National League of Cities (NLC), facilitate communication and coordination among different levels of government
• Congressional committees, such as the Senate Committee on Homeland Security and Governmental Affairs, oversee and influence intergovernmental relations through legislation and oversight
• Federal agencies, like the Department of Health and Human Services (HHS) and the Environmental Protection Agency (EPA), play a significant role in IGR by administering programs and enforcing regulations that impact state and local governments
• The judicial branch, particularly the Supreme Court, shapes IGR through its interpretations of the Constitution and rulings on cases involving federalism and the division of power between levels of government

Evolution of Federalism in the US

• Dual federalism (1789-1933) emphasized the separation of powers between the federal and state governments, with each level having distinct spheres of authority
• Cooperative federalism (1933-1960s) emerged during the New Deal era, characterized by increased collaboration and shared responsibilities between the federal and state governments
• Creative federalism (1960s-1980s) saw an expansion of federal grants and programs, with the federal government taking a more active role in addressing social issues and promoting national goals
• New federalism (1980s-1990s) aimed to decentralize power and return more authority to the states, with initiatives like block grants and welfare reform
• Coercive federalism (1990s-present) involves the federal government using mandates, preemption, and other tools to compel state and local governments to implement federal policies
• The Supreme Court has played a significant role in shaping the evolution of federalism through landmark cases like McCulloch v. Maryland (1819), which affirmed the supremacy of federal law, and United States v. Lopez (1995), which limited the federal government's power under the Commerce Clause
• The balance of power between the federal and state governments continues to evolve, with ongoing debates over issues like healthcare, immigration, and environmental regulation

Types of Intergovernmental Relations

• Cooperative federalism involves collaboration and shared responsibilities between the federal and state governments, with both levels working together to achieve common goals
  • Example: The Medicaid program, where the federal government provides funding and sets guidelines, while states administer the program and have some flexibility in determining eligibility and benefits
• Competitive federalism occurs when different levels of government compete for resources, power, or influence, often leading to tensions and conflicts
  • Example: States competing for federal grants or tax incentives to attract businesses and promote economic development
• Coercive federalism involves the federal government using its power to compel state and local governments to implement federal policies or adhere to federal standards
  • Example: The No Child Left Behind Act (2001), which required states to implement standardized testing and meet specific educational benchmarks to receive federal education funding
• Permissive federalism allows state and local governments to exercise discretion in implementing federal policies or programs, with the federal government providing broad guidelines and minimal oversight
  • Example: The Community Development Block Grant (CDBG) program, which provides federal funds to states and localities for community development projects, with significant flexibility in how the funds are used
• Functional federalism focuses on the division of responsibilities based on the specific functions or policy areas, rather than strict adherence to traditional notions of federal, state, or local authority
  • Example: The Clean Air Act, which establishes national air quality standards but allows states to develop and implement their own plans to meet those standards

Understanding Mandates

• Mandates are requirements or directives imposed by one level of government on another, often by the federal government on state and local governments
• Funded mandates come with financial support from the issuing government to help cover the costs of implementation
  • Example: The Individuals with Disabilities Education Act (IDEA), which requires states to provide free and appropriate education to students with disabilities and provides federal funding to assist with the costs
• Unfunded mandates require state and local governments to comply with federal requirements without providing adequate financial support, placing a significant burden on their budgets
  • Example: The Americans with Disabilities Act (ADA), which requires state and local governments to make public facilities and services accessible to individuals with disabilities, without providing federal funding to cover the costs of compliance
• Mandates can be statutory, meaning they are imposed through legislation passed by Congress, or regulatory, meaning they are imposed through rules and regulations issued by federal agencies
• The Unfunded Mandates Reform Act (UMRA) of 1995 aimed to limit the imposition of unfunded federal mandates on state and local governments by requiring Congress to estimate the costs of mandates and provide funding for those exceeding a certain threshold
• Mandates can create tensions in intergovernmental relations, as state and local governments may resent federal intrusion into their affairs and the financial burdens imposed by unfunded mandates

Funding and Fiscal Federalism

• Fiscal federalism refers to the division of taxing and spending powers among the federal, state, and local governments
• Federal grants are a key component of fiscal federalism, providing financial assistance from the federal government to state and local governments for specific purposes
  • Categorical grants are targeted to specific programs or policy areas and often come with strict requirements and oversight
    • Example: The Title I program, which provides federal funding to schools with high percentages of low-income students to improve academic achievement
  • Block grants provide a fixed amount of funding to states or localities for a broad purpose, with greater flexibility in how the funds are used
    • Example: The Temporary Assistance for Needy Families (TANF) program, which provides block grants to states for welfare and work support programs
• Revenue sharing involves the distribution of federal tax revenues to state and local governments, often based on formulas that consider population, income, or other factors
• State and local governments also rely on their own sources of revenue, such as property taxes, sales taxes, and income taxes, to fund their operations and services
• Fiscal federalism can create challenges, such as vertical fiscal imbalances (when one level of government has greater taxing power than spending responsibilities) and horizontal fiscal disparities (when there are significant differences in the fiscal capacities of states or localities)
• The Great Recession of 2008-2009 highlighted the importance of fiscal federalism, as federal stimulus funds helped state and local governments maintain services and avoid layoffs during a period of economic downturn

Challenges and Controversies

• The balance of power between the federal and state governments is a constant source of tension, with debates over issues like states' rights, federal overreach, and the appropriate roles of each level of government
• Unfunded mandates remain a significant challenge in intergovernmental relations, as state and local governments often struggle to comply with federal requirements without adequate financial support
• Preemption, where federal law supersedes state or local laws, can create conflicts and limit the ability of state and local governments to address local needs or preferences
  • Example: The Federal Aviation Administration (FAA) has preempted state and local regulation of drones, limiting the ability of communities to address privacy and safety concerns
• The distribution of federal funds among states and localities can be controversial, with concerns about fairness, equity, and the use of formulas that may not accurately reflect local needs or conditions
• Intergovernmental relations can be strained by partisan politics, as federal, state, and local officials may have different priorities or ideological positions that make cooperation and coordination difficult
• The COVID-19 pandemic has highlighted challenges in intergovernmental relations, as federal, state, and local governments have sometimes struggled to coordinate responses and allocate resources effectively
• Climate change and environmental policy present ongoing challenges for intergovernmental relations, as federal, state, and local governments grapple with how to address the issue and balance competing interests

Real-World Examples and Case Studies

• The Flint, Michigan water crisis (2014-2019) illustrates the challenges of intergovernmental relations and the consequences of failures in coordination and oversight
  • The city of Flint, under the control of a state-appointed emergency manager, switched its water source to the Flint River without properly treating the water, leading to lead contamination and public health issues
  • The crisis involved failures at multiple levels of government, including the Michigan Department of Environmental Quality, the EPA, and local officials, highlighting the importance of effective intergovernmental communication and accountability
• The implementation of the Affordable Care Act (ACA) demonstrates the complexities of cooperative federalism and the role of states in administering federal programs
  • The ACA expanded Medicaid coverage and established health insurance exchanges, with states having the option to establish their own exchanges or participate in the federal exchange
  • The Supreme Court's decision in National Federation of Independent Business v. Sebelius (2012) upheld the ACA but made Medicaid expansion optional for states, leading to variations in coverage and implementation across the country
• The legalization of marijuana at the state level illustrates the tensions between federal and state laws and the evolving nature of federalism
  • As of 2021, several states have legalized marijuana for medical or recreational use, despite it remaining illegal under federal law
  • The Obama administration issued guidance (the Cole Memorandum) indicating that the federal government would not prioritize enforcement in states with robust regulatory systems, demonstrating a form of permissive federalism
  • However, the Trump administration rescinded this guidance, creating uncertainty and potential conflicts between federal and state policies
• The COVID-19 pandemic response has involved extensive intergovernmental coordination and challenges, as federal, state, and local governments have worked to address the public health and economic impacts of the crisis
  • The federal government has provided funding and resources to states and localities through measures like the CARES Act and the American Rescue Plan Act, demonstrating the importance of fiscal federalism in times of crisis
  • However, there have also been tensions and conflicts over issues like mask mandates, vaccine distribution, and the allocation of medical supplies, highlighting the ongoing challenges of intergovernmental relations in emergency situations