Foundations of American Democracy - Part II
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Questions and Answers

What is revenue sharing?

The distribution of tax dollars or other revenue from one level of government to another, such as from the federal government to a state government.

What is an example of revenue sharing?

Safe Streets Act of 1968.

How does revenue sharing impact the balance of power between state and national government?

It maintains a balance of power without giving more power to either side.

What is a mandate (unfunded mandate)?

<p>When a new piece of federal legislation requires another entity to perform functions for which it has no funds.</p> Signup and view all the answers

What is an example of an unfunded mandate?

<p>Eliminating federal matching funds for states to administer child support enforcement.</p> Signup and view all the answers

How does an unfunded mandate impact the balance of power between state and national government?

<p>It reduces the ability of states to manage programs according to their needs, benefiting Congress.</p> Signup and view all the answers

What is a categorical grant?

<p>Funds provided for a specific and clearly defined purpose.</p> Signup and view all the answers

What is an example of a categorical grant?

<p>Federal money for implementing a seat belt program.</p> Signup and view all the answers

How does a categorical grant impact the balance of power between state and national government?

<p>The federal government benefits more, as it controls the distribution of funds.</p> Signup and view all the answers

What is a block grant?

<p>Money given to states for general programs within a broad category.</p> Signup and view all the answers

What is an example of a block grant?

<p>Temporary Assistance for Needy Families (TANF).</p> Signup and view all the answers

How does a block grant impact the balance of power between state and national government?

<p>States benefit most, as they have the freedom to use the funds as they see fit.</p> Signup and view all the answers

Study Notes

Revenue Sharing

  • Refers to the distribution of tax dollars or other revenue from one government level to another, such as from federal to state governments.
  • Example includes the Safe Streets Act of 1968, which provided states discretion in allocating federal funds for health and law enforcement initiatives.
  • Revenue sharing maintains a balance of power between state and national governments, with no clear beneficiary.

Unfunded Mandate

  • A federal requirement for entities to perform specific functions without providing the necessary funding.
  • An example is the elimination of federal matching funds for states managing child support enforcement, impacting their financial support.

Impact of Unfunded Mandate

  • Federal mandates can diminish state resources by altering funding structures or requirements.
  • Congress benefits from unfunded mandates by enacting laws without accompanying financial responsibility, limiting states’ ability to tailor and manage programs according to local needs.

Categorical Grant

  • Funds allocated for a specific purpose with clearly defined requirements.
  • An example is federal funding for seat belt programs, which involves stipulations that states must fulfill to utilize the funds, allowing the government to influence safety regulations while respecting state authority.

Impact of Categorical Grant

  • The federal government has greater control as it dictates the terms of funding, enhancing its power over the states.

Block Grant

  • General funding provided to states for broader program categories, offering states flexibility in spending.
  • An example is the Temporary Assistance for Needy Families (TANF) program, allowing states to dictate how welfare money is utilized.

Impact of Block Grant

  • States benefit from block grants as they enjoy greater discretion over the use of funds, increasing their control and flexibility in meeting local needs.

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Test your knowledge on the key concepts of revenue sharing in American democracy with these flashcards. Explore definitions and examples that illustrate the federal-state financial relationship.

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