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Managing the Public Sector Ch 3 outline
Chapter 3: Intergovernmental Relations
Grover Starling Managing the public sector
• There are many separate jurisdictions that make up our federal government. All of these have very different relationships.
• The U.S. federal government divides its central and regional governments. Each then has its own area of jurisdiction.
 There are two “cake” models of government.
 One is the “layer cake” model of federalism, claiming that each is independent and is easily defined.
 The “marble cake” model demonstrates the cooperation and intermingling of U.S. governments and powers.
 It is generally said that federalism tends to recognize mainly national/state and interstate relations.
 However, it tends to ignore national/local, state/local, and interlocal relations.
• There are 6 eras of federal-state relations in America.
Dual federalism (1789-1933) where state and national were very distinct and separate.
Cooperative federalism (1933-1960) included many grants and government help.
Creative federalism (1960-1968) Grants programs were exploding, and they are still important today. These include the Secondary Education Act and Medicaid.
New federalism (1968-1980) included revenue sharing, and consolidating program grants into block grants with few strings attached.
New, new federalism (1980-1993) national priorities were changing and money was tight. New, new federalism saw a lot of tax cuts and mounting debt.
Devolution (1993-present) Shows the power “rolling down” from National to State.
• As more and more government grants were introduced, they became important staples and fixtures that identified American Government.
In 1980, the government spent 40 % of the national budget on grants.
However in 1990, it dropped dramatically low to 25 %.
Now, it is pretty much always around 30-32 %.
• Not only can presidents create new eras, they can also create: regional offices, Internet commerce, and appoint justices for Supreme Court.

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