9/20 Lecture – PolySci 1111)Federalism & Moneya)Before 1929 – not much of a problem in the Federal system of money.b)Georgia had to give script, because they could not pay the state employees.c)By 1932 states had to “ask, and beg” the federal government for money.i)Fed government said, ”We will loan, or give money, but you must do things that we want you to do.”ii)Power – Fed Government used this to prove they were superior.iii) If you take the Fed. Government’s $:(1)Categorical Grants – for “specific” purposes (Speed Limits on Highways) (2)Block Grants – Broad grant with few strings attached (education ,health services)d)Highways – States contribute 10%, Fed provided about 90%. So Fed’s said to take the money, you must set speed limits.e)Nixon said, they are tired of categorical grants. Southerners didn’t want to desegregate facililties.i)He creates “Revenue Sharing” - % of $ states put in the treasury. This allows states to get some money back without strings attached.
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