Chapter 3:

Government Administration Structure:

Intergovernmental Relation

KLB 2213: Introduction to Public Administration
The Evolution of Government Systems
The US was originally a loose confederation of
independent states
with few delegated powers and limited authority
inherently weak form of government.

In 1787 the Constitutional Convention provided a
new form of government in a written constitution
divided up powers between the central government
and states,
assigning specific powers to each - powers cannot be
changed unilaterally without legislation.
Intergovernmental Relations (IGR)
Along come federalism, need for stronger bonding among governments

IGR are the policies and mechanisms that manage the interactions between
different levels of government represent federalism in action

Typically, the sharing of power, revenues, and resources from higher to lower
levels

Strings attached must meet conditions to receive assistance from above

IGR should consider all interactions between all combinations of government units

National State
National Local
State State
State Local
Local Local
National State Local


Federalism

Both a national government and
state (province, region) level
governments

Powers of governing are divided
or shared between levels, each
can and cant do certain things

Both of these levels exert power
over citizens at the same time, in
different policy areas

Federal arrangement codified in a
constitution which no level can
unilaterally change

Power of US Government
US National Government US State Government
Print money
Establish an army and navy
Establish post offices
Declare war
Make treaties with foreign governments
Regulate interstate and international
commerce
Establish local governments
Issue licenses
Set legal limits and standards (health & safety)
Govern marriage and divorce
Regulate intrastate commerce
Regulate real property
Conduct elections
Ratify amendments to the U.S. Constitution
Anything else not delegated or prohibited by
the national government
Shared Power by US National and State Government
Establishing courts Taxation
Building highways Making and enforcing laws
Creating banks and corporations Spending money for public purposes
Taking private property

Level and Power of Malaysian Government
Malaysia Federal
Government
Malaysia State
Government
Malaysia Local
Government
Administrative power
ruled by Parliament
Matters cover in Federal
List
Foreign Affairs
Internal Security
Defense
Education
Civil and Criminal War
Citizenship
Finance
Commerce and
Industries
Shipping
Communication
Health and Labor
Administrative power
exercised by Chief
Minister
Matters cover in State List
Religion
Land
Agriculture
Forestry
Local Government
Muslim Law

Administrative power
ruled by Mayor
Responsible for
Planning, coordinating,
and controlling the use
and development of land
and buildings

Advantages of Federal System
i. Regional and local-level participation in governance;
less potential for remote central government

ii. Incremental approach with debate and consideration,
not unilateral

iii. Cultural, ethnic, geographic differences receive
greater consideration; less potential for larger, more
powerful to dominate

iv. Diversity and experimentation with policy
Disadvantages of Federal System
i. Slow, incremental change; lack
of decisive action

ii. Direction, jurisdiction,
accountability can be unclear
and confounding

iii. Duplication of institutions,
programs, taxing, and spending

iv. Competition between states,
with welfare a race to the
bottom

v. Things can easily get mixed up
lack of coordination


Federalism: Marble or Layer Cake?
Marble Cake Federalism Layer Cake Federalism
Marble Cake Federalism is based
on pragmatic mixing of authority
and programs among the national,
state, and local government
Layer Cake Federalism is based on a
clear description of authority and
programs among the levels of
government
Mandates
Requirement that lower level implement policy or comply with
rules of higher level

Direct orders with conditions for receiving funding or resources

Programmatic identify the type and quality of a program to be
implemented
Example: School lunch programs must meet national nutrition
standards

Procedural continue current policy but with new requirements
Example: Starting now, make records accessible to the public
Starting now, hire in accordance with equal
opportunity program




Fiscal Federalism
Funding mandates is example of fiscal federalism

How can central government with less authority over lower levels in
some policy areas achieve its goals?

Incentives provide funding

Grants-in-aid are funds provided by national government to local
level

Stimulate local spending to implement programs
Helps to cover costs
Helps to enable a uniform service level
The theory that focuses on the financial relationships
between the units of a federal system

Suggests that a federal form of government is effective in:
distributing income equitably,
maintaining high employment & stable prices, and
establishing efficient resource allocation.

Unfunded Mandates
Statute or regulation that requires a lower level government (state or
local) to perform certain actions.

However, that higher level of government (national or federal) does not
provide any or enough funding to help with implementation

A prime example of an unfunded mandate is a national election each
state administers the election for its residents.
Though these elections end with the appointment of federal officials, it is the
individual states that pay the cost of running the local elections.

Many believe laws imposed by the federal government should require
federal funding of those laws.
unfunded mandates place an unfair burden on lower levels of government,
creating huge, unmanageable expenses for state and city governments.

Fiscal Federalism and Redistribution
Why not just keep our money, and buy our own services,
instead of paying taxes?

States have different levels of resources would a rich
state willingly give money to poor state?

Government has to provide for general welfare

Equity in taxation and distribution of resources through
fiscal federalism tools grants

Types of Grants:
i. Categorical Grants provided for specific programs and
subject to strict federal regulations
ii. Block Grants federal funding for a general policy area of
government activity
iii. Revenue Sharing Grants federal government disbursed
funds to state and local governments as they saw fit

Distribution of funds:
i. Formula Grants based on a decision rule
ii. Project Grants require seeking funds to submit
applications
iii. Matching Grants require recipient to contribute some of
its resources to the activity
Conclusion
Process of intergovernmental relation is
federalism in action
interrelationships among the governments within
federal system layer and marble cake
political, fiscal, programmatic, and administrative
process.

Mandate is derive force of decentralization
Conditions that the lower units must satisfy as
prerequisites to receiving the assistance.