Federalism

Question 1

Vertical Fiscal Imbalance

Answer 1

• different between financial capacity and jurisdiction
• spending power
• Conditional and unconditional grants

Question 2

horizontal Fiscal imbalance

Answer 2

• unequal capacities of regional units
• NB does not have the same ability to make money like AB
• Equalization

Question 3

Cost Sharing

Answer 3

1945 - federal govt was much more willing to spend money

Question 4

CHST

Answer 4

Canada Health Transfer

introduced in 1995
-health
education
-welfare

Question 5

CHST was replaced with

Answer 5

EPE (Established Programs Financing) and CAP

Massive federal cuts in transfers
-35% over two years

Block grant

• health
• Welfare

Divided in 2004

• CHT
• CST

Question 6

What is CHT (Canada Health Transfer)

Answer 6

is the largest major transfer to provinces and territories. It provides long-term predictable funding for health care, and supports the principles of the Canada Health Act which are: universality; comprehensiveness; portability; accessibility; and, public administration.

include both cash and tax point transfers

Question 7

CST

Answer 7

Canada social transfer

a federal block transfer to provinces and territories in support of post-secondary education, social assistance and social services, and early childhood development and early learning and childcare.

ensure that conditional transfers provide equal support for all Canadians.

Question 8

Equalization

Answer 8

Based on calculating how much money per citizen each province is capable of raising

financial Capacity

PIT

CIT

Sales tax

Natural resource revenue
Property Tax

-Calculated on three year average

AB has never qualified for equalization

Question 9

PIT

Answer 9

Provincial income tax

Question 10

CIT

Answer 10

Corporate income tax

Question 11

Unconditional

Answer 11

Provinces can spent it however they wish

Question 12

provincial taxes

Answer 12

Confederation: custom and excise revenues

-provincial income taxes as % of fed
-Pas as a percentage of the federal tax
Ex: if you paid 100 in fed tac you might pay 50 in provincial tax

post 2000 provincial taxes on income

Question 13

Taxes

Answer 13

PIT
Largest for all prov but AB and PEI

Degree of progressiveness

Consumption

• sales tax
• alcohol, tobacco, gas, liquor and gabling

Resource revenue
-AB, NFLD, SK, BC

Question 14

Social Union Framework Agreement

Answer 14

Quebec not in agreement

aftermath of CHST and its cuts

Free movement, no barriers I knew social policy

federal spending power use “proceed in a co-operative manner”
-no new programs w/o agreement of majority of provinces
1 year notice for funding changes
provinces determine priorities

accountability

• annual report, meetings
• monitor and measure results
• use fund for agreed purposes

Question 15

Managing Federalism: intra-state

Answer 15

intra-state: dealt with within the institutions of the fed govt
cabinet
upper house
court

Is the accommodation of regional interests within national political institutions (ex: in the senate or in the cabinet)

Question 16

Managing Federalism: Inter-state

Answer 16

Federal to provincial negotiations and interaction

FMCs: First ministers Conference
Executive Federalism
-Deals with negotiations with the federal and the provincial with minister to minister, to bureaucrat to bureaucrat

Question 17

Centre- periphery relations

Answer 17

B/c the size of their populations, no party can win a federal election without the support of at least one, and usually both, of Ontario and Quebec Voters

Resentment towards central Canada and the federal govt is deep rooted in the peripheries, especially the west

Question 18

Intergovernmental relations

Answer 18

Divided jurisdiction over revenue sources and policy fields results in a network of relations linking the two levels of govt

• first ministers conferences between the Prime Minister and premiers
• premiers meetings

Question 19

Intergovernmental relations, cont’d

Answer 19

Hundred of less publicized meetings happen every year between federal and provincial cabinet ministers and bureaucrats

This intense, regular interaction is known as executive federalism

Question 20

Executive federalism

Answer 20

Executive federalism may be inevitable in a federation with overlapping responsibilities, activists governments at both levels, and complex govt programs… but it is criticized

Non transparent, takes place behind closed doors. Limits public input

Question 21

Executive federalism is undemocratic

Answer 21

negotiations between federal and provincial officials take place behind closed doors

federal-provincial agreements, which are jointly funded or administered blur the lines of responsibility, making it difficult for citizens to determine who should be had accountable for what

provides no opportunities for public input on the appropriate standards for the programs offered