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Federalism Four

QuestionAnswer
Define fiscal federalism. The pattern of spending, taxing, and providing grants in the federal system; it is the corner stone of the national government's relations with state and local governments.
Why is federal aid so important to state and local governments? - see percentages It is spent for such things as health care, education, and income security.
Contrast categorical grants and block grants. Categorical grants are federal grants that can be used only for specific purposes, or "categories," of state and local spending. They come with strings attached. Block grants are given automatically to support broad programs (not specific).
Which of the above is more common? Categorical grants.
Provide two restrictions/"strings" which commonly come with categorical grants. Nondiscrimination provisions and federal funds may not support construction projects that pay below the local union wage.
How do crossover sanctions and requirements allow the federal government to influence the activities of state and local governments? Crossover sanctions use federal dollars in one program to influence state and local policy in another. Crosscutting requirements- when a condition on one federal grant is extended to all activities supported by federal funds, regardless of their source.
Why are state governments typically said to prefer block grants? - provide two reasons They require less paperwork and have less strings attached than categorical grants.
What is a mandate from the federal government? Requirements that direct states or local governments to provide additional services under the threat of penalties or as a condition of receipt of a federal grant.
Explain how Medicaid illustrates this (mandate). Congress can offer money to the states to expand Medicaid and can attach conditions to such grants, but it cannot penalize states that chose not to participate in that new program by taking away their existing Medicaid funding.
The Americans with Disabilities Act is an unfunded mandate. What does this law require? It required states to make facilities, such as state colleges and universities, accessible to individuals with disabilities, but did not allocate funds to implement this policy.
What is an unfunded mandate? A law creating financial obligation for the states but provides no funds to meet these obligations.
What is another example of an unfunded mandate? The Clean Air Act of 1970 that established national air quality standards but required states to implement them and to appropriate funds for that purpose.
Provide two modern examples of insufficiently funded mandates and their impacts on states. No Child Left Behind Act of 2002, threatens school systems with the loss of fed. funds if they do not improve student performance. The fed. gov. requires a local housing authority build/acquire a new low-income housing facility for each one it demolishes.
Created by: Matti
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