Ch7. Intergovernmental Relations and Local Administration

The Meaning of Federalism and Local Self-Governance

Federalism:
Constitutional division of authority between the national government
and state/local governments; each tier holds independent powers

Values of Decentralization:
Democracy: grassroots democracy, civic participation
Administrative efficiency: services tailored to local conditions
Diversity: variation in policy approaches across jurisdictions
Power dispersal: counterweight to centralized authority

Dual Federalism vs. Cooperative Federalism:
Dual ("layer-cake"): strict separation of federal and state functions
  → 19th-century model; limited federal role
Cooperative ("marble-cake"): shared, intertwined functions
  → New Deal onward; federal grants drive collaboration
New Federalism: devolving power back to states
  → Nixon (revenue sharing), Reagan (block grants), Clinton (PRWORA)

Structure of State and Local Government

State Governments:
Legislature (bicameral in 49 states, unicameral in Nebraska)
Governor: chief executive, 4-year term in most states
Attorney General, Secretary of State, State Treasurer (often elected)

Local Governments:
Counties: largest general-purpose local unit (3,069 in the U.S.)
  → Governed by elected county commission or board of supervisors
Municipalities (cities/towns): provide urban services
  → Mayor-Council form: strong mayor (executive power) or weak mayor
  → Council-Manager form: professional manager hired by city council
Special Districts: single-purpose entities (school districts, water districts)

City Government Forms:
Mayor-Council (separation of powers): elected mayor as executive
Council-Manager: council sets policy; city manager handles administration
Commission: governing board members each head a department

Federal-State-Local Fiscal Relations

Authority Distribution:
Federal: defense, foreign policy, interstate commerce, immigration
State: education (primary/secondary), criminal law, state highway systems
Local: land use/zoning, local roads, parks, public safety (police/fire)

Subsidiarity Principle:
Functions should be handled at the lowest level of government capable
of performing them effectively

Federal Grants to State and Local Governments:
Categorical Grants: funding for a specific, congressionally defined purpose
  → Examples: Medicaid, Title I education, highway construction
  → Require matching funds and compliance with federal conditions
Block Grants: broad-purpose grants with more state/local discretion
  → Examples: CDBG, SSBG, TANF
  → Fewer strings; states design their own programs

Fiscal Equalization:
Revenue sharing (defunct since 1987) redistributed federal tax revenue
Formula-based grants compensate for variation in state fiscal capacity
Medicaid FMAP: higher federal match rate for poorer states

State and Local Own-Source Revenue:
Property taxes (primary local revenue)
State income taxes, sales taxes
User fees and charges

Citizen Participation Mechanisms

Direct Democracy Tools (state and local):
Referendum: voters ratify or reject a legislative act
Initiative: citizens propose and vote on laws/constitutional amendments
  (used in 26 states + DC)
Recall: voters remove an elected official before term ends
  → Most notable: 2003 California recall of Governor Gray Davis

Participatory Budgeting:
Citizens deliberate and vote on allocation of a portion of public funds
Originated in Porto Alegre (Brazil); adopted in NYC, Chicago, and other U.S. cities

Public Comment and Notice-and-Comment Rulemaking:
Federal agencies must publish proposed rules in the Federal Register
and allow public comment before finalizing (APA, 5 U.S.C. § 553)

Advisory Committees (FACA):
Federal Advisory Committee Act governs citizen/expert advisory panels
Ensures balance, openness, and public accountability

Key Concept Cards

Dual vs. Cooperative Federalism ★★★★★ : Dual = strict separation (layer cake). Cooperative = shared functions (marble cake). Modern U.S. = cooperative/overlapping. Memory tip: marble cake = everything mixed together

Categorical vs. Block Grants ★★★★★ : Categorical = specific purpose + federal conditions. Block = broad purpose + state/local discretion. Memory tip: categorical = strings attached; block = flexible

Recall Requirements ★★★★☆ : Citizen petition → recall election → majority vote to remove. Requirements vary by state. Memory tip: recall = the voters can fire elected officials

Practice Questions

Q. What is the difference between categorical grants and block grants?

Categorical grants fund a specific, narrowly defined federal purpose and come with detailed requirements (matching funds, reporting, compliance conditions). Block grants consolidate multiple categorical programs into a broad-purpose grant that gives states and localities more flexibility to design their own programs. Examples: TANF replaced AFDC with a block grant, giving states discretion over welfare program design.

Q. Why is decentralization important in the U.S. federal system?

The U.S. system was built on skepticism of concentrated power. Decentralization allows states and localities to act as “laboratories of democracy,” experimenting with policies and adapting services to local conditions. It also promotes civic engagement and ensures that residents have accessible, responsive government. However, decentralization can also produce inequity when wealthy and poor jurisdictions have vastly different fiscal capacities.