|
DUdley Z-leh FOR MEDIA?! RELEASE
Area Code 202 October 7, 1967
73888 RBleSB
AWISORY (119115810! m 1mm RELATIONS
Washington. D. C. 20575
Mill PIOPOSES W 3 NC MID WWII? SCH.
The Advisory Commission on Intergovernmental Relations at a two-
day meeting October 6 and 7 rccmuded a wide ranging program of
Congressional and State legislative action to improve the fiscal balance
among Federal, State. and local levels of govermuent.
The Cnmissioo adopted a proposal calling upon the Federal
governaent to broaden the nix of Federal aid to States and localities
to include not only existing types of categorical assistance" but also
block grants and general support payments -- so-called "revenue sharing.
'Ihe block grants. the Coomission urged, should be developed 'through the
consolidation oi existing specific grants-in-aid to give States and
localities greater flexibility in nesting needs in broad (notional
areas. General support payments, the Commission "contended. should be
oo a par capits basis. adjusted for variations in tea effort. They
would "allow States and localities to devise their own progress and set
their own priorities to help solve their unique and most crucial
(more)
problena.' Chairnen Farria Bryant did not concur in the Con-ieainn'e
action.
Among the atertlins findinge emerging fro. the Conniaeiona year
long atudy ni "fiecal federalism are:
--An increasing (iacal diaperity between central citiee and
ruburbe, particularly in the Northeaat and Midwest.
--The paradox of central city poverty in the nidat of natropolitan
plenty ia strikingly illustrated by fact that the countrya metropolitan
areaa account for 65 percent of the population, 70 percent of taxable
aeaeaeed Valuation, three-quartera or were of Federal perennal income tax
collections. and 80 percent of bank checking accounts: but these areas
elao account for most of the nation'a poverty, crime, delinquency, and
civil disorder.
o-A concentration of 'high coat citizena"--children in achonl,
the elderly. welfare recipients-~in the central city, and thia concentra-
tion will increase in the future.
--Central city educational eapenditurea are lower than in the
auburba, not only on a per capita haaia, but alao on a per pupil haaia.
Where the need ia greateat the aupport dollara are fewest.
--Ihe local tax burden in the central citiea, neaaured againat
income, is nnre than 50 percent greater than in the auburbe. Growth in
State and Federal aid her not been aufficient to counteract growing
diaperitiee in per capita tax revanuea between the central city and
suburbia.
(nore)
-3.
The Counission elso celled on the Stetes to equip themselves with
e productive end broed-besed ts: systen, includin3 effective but equitsble
use of the lace! property tex to eoeble the: to underwrite e nsjor portion
of their expending expenditure requirements.
To iscilitete helenced use of property. inco-e, end seles texes.
the Counission recommended thet Ststes sdopt policies to shield besic
isnily income from seles tsx excesses end limit the burden of residentisl
property texes on low incoue fenilies.
Hejor Cousission proposels (or essins netropolitsn disperities cell
for:
--Stetes to esteblish regional school property texins districts
empowered to levy eresvide texes for ellocetioo anon; school districts in
the region; such errengeuents would be for iinsncisl tether then operetina
or policy purposes.
--Stetes to provide tinenciel incentives for specialised, culti-
district educetionel fscilities designed to nest speciel high cost
educetionel needs.
--Congress to enend the lie-eatery end Secondary Bducetion Act of
1965 to permit use of svsilsble great funds for incentives to Stete ection
to helence fiscsl resources uith educetionsl needs in eetropoliten srees.
o-Stetes to sdd to their school eid tornules sppropriete tectors
reflecting higher per pupil costs soon; disedvsnteged children. especielly
in heevily populetsd srees.
(more)
. a .
Statas and localities to cm any loaal obstacles to greater
involva-nt oi pcivato ontorprisa in the solution of central city problo-s
and to onwurata private-public oi'i'orts to ovarco-o comic and iiacal
datotioration in unjot citisa.
"State government to on:er a Stato agsncy to order. 'ahara
noodod, consolidation or dissolution of local mommnt units within a
metropolitan aroa to mininisa continuad itasmsntation o! the tax base.
Tho Cos-ission tool: noto of population 3:00! pattam which point
to further conconttation of pooplo in astropolitan aroas. Ilsa ACll now
has undantay a study on "Balanced Urbanization and lov Coo-mity navalop-ont"
that axploros this problcn; a draft "port will ho considarad at tho
Couission's January 1965 nesting.
lho Omission also tallad (or narkad iaprovononts in tho collaction,
analysis, and diaaanination of social. acononic. and fiscal data at all
lovala of aovarnaant.
Tho Cass-ission's action today marks tho conplation of its wido-
ranainc study of Lntsrgmrnaantal fiscal arrange-ants. At its July let
muting tho Consission adoptod a scoro o! rocmndationa dosignod to
strengthen tho Yodotal grant-in-aid systo- and to nodorniss the attucturo
and financial operations of Stats gonna-tot.
'lha 26-month" Couission is a bipartisan body astahliahod by Congrass
to maintain continuing taviav at tho tolations am tad-cal, Ststa and
local swarm-ants. Its asnborship consists of govornors, mayors. county
oilicisla, State logislstots, and nptasoutativas (to. both llousas of tho
(aura)
.5.
Congress, ch: Federal Executive Branch and the pun! public.
Putts Byrant, former Contact of Plot: 11 Churn-In of the
Continuum.
(ldttor note: A router of Con-10100 numbers and a digest of the
recomndnuom adopted at the October 6-7 motto; an attached.)
(cad)
-6-
Summary of Recon-undationa
1. Adoption of a flexitle combination of raderal financial
assistance to States and localities to consist of categorical grantsoin-
aid. general functional block grants, and per capita general support
payments. The federal support payments. adjusted for variations in tax
effort, could be nade to either State or eajor local units of sovernnent;
they should not conflict with any existing comprehensive State plan.
(Chairnan Bryant dissented.)
2. Achieving better balance in State and local tax systems by
:mre effective local use of the property tax, the adoption of broad
based State taxes, and the shielding of basic {sadly income from undue
burdens of sales and property taxes.
3. Strengthening the productivity of the sales tax, by protecting
lou-incoee families from undue tax burdens on sales of food and drugs.
a. Strengthening the productivity of the local property tax by
State action to help localities in relieving low-incolt fll1*¢' ('0'
undue property tax burdens.
5. State authorisation of regional school property taxing
districts to assist in equalizing the property tax burdens of school
financing betueen central cities and suburbs.
6. State authorization and financial assistance for specialised
educational facilities on a multiedistrict basis.
7. Federal encouragement and financial assistance for multi-
district educational arrangements.
3. Addition of factors in State school aid formulas to reflect
higher per pupil coats for disadvantaged children. especially in densely
populated areas; amendment to Elementary and Secondary tducation Act to
authorise use of available grant funds in support of such action.
9. Prevention oi fragmentation of the tax base by authorising
State agencies subject to public hearing and court review to consolidate
or dissolve local governmental units uithin metropolitan areas, to stop the
use of interolocal contractathnt contribute to fragmentation. and to reduce
State aid to local soverencntsnnt nesting statutory standards of economic.
geographic. and political viability.
(core)
-7-
10. Fostering neighborhood initiative and self-respect by
authorising counties and large cities to establish, and at their discretion
to abolish, neighborhood subunits endoued with limited povers of taxation
and local self-government.
ll. Federal, State and local financing of neighborhood information
centers and referral services to orient in-nigrents and others to the
demands of urban society.
l2. State constitutional and statutory action to remove barriers
to private involvement in coping with urban problems and to enhance public-
private cooperation.
13. Expansion of Internal Revenue Service statistical reports on
income to provide data on individual units of local governsent vithin
Standard Hetropolitan Statistical Areas.
l6. Batablishsent of a national system of social accounts, with
special emphasis on the develop-ant of such data for individual cities,
counties and Standard Metropolitan Statistical Areas. as veil as State
and national aggregates.
lS. lstablishnsnt by existing or new non-governmental organisations
of data facilities to measure cooperative perfornance levels of local
governmental units for the major urban functions. This effort should
look toward setting optimal standards, and collecting, analysing and
publishing data.
l6. Improved coordination. through the Executive Office of the
President. of federal grant programs being administered by a variety of
federal departments and agencies.
l7. Decentralisation to federal regional offices of rtviev and
approval of plans resulting from Federal formula-type grants to State and
local governments. Reduction in the wide variations in boundaries of
Pede ral administrative reg ions .
l3. Bringing Federal Executive boards under Bureau of the budget
supervision and providing at least one full-time staff masher for each
of the major Boards.
19. State action to remove restrictions on the length and
frequency of State legislative sessions including serious consideration
of annual sessions by those States now holding biennial sessions.
(Governor Dempsey dissented.)
(eore)
-3-
20. lstahlishaent by State legislatures of machinery for
following Federal legislation and for presenting State legislators'
Vitus at Congressional hearings.
21. Revision by Congress of Section 701 of the Rousing Act of
1956 to strengthen comprehensive planning at State, regional, metropolitan
and local levels, and to require review and comment by State planning
agencies of project proposals impinging upon State or local comprehensive
plans. The Connission took no position on assignment of responsibility
within the Federal Govern-tot for financial assistance to State and local
planning activities.
22. Serious consideration by the States to providing more
constitutional flexibility for long-range State financing.
(end)
PAGE 1
i., ., .. --... j -. -:-.. ..-. -: .--.--.i. .... 1 .-.: .: .-, -..-| ... I i i i. -. 1 :.-r i -.. :1-. ..--.ro -1 -----
PAGE 2
.., -.-,.. .i ..--, ---...-..! -.-.! .. .---...: .r ..--! .-. -: -.. -' i .i. i -:-1 i ., -... -.....-.. ..--1
PAGE 3
--...-.-r -.t-.. -.: i a ---.. 1::. -r --...-. --, --: : -, :-.---1. al-,s a 1. :t e -. .-..i-.ir ir 1r e s 1. -|-: ---.: e s s ---1. -: i | : .I e .-. .s.. -..:.. e a t.' .: -1 :1-:' :1.b': .' i a = .----..-,. -.s .--, -' ---: r s ---L :. 1 : ..-. --: 1 : -: --, II I .... t:---.. ......-.13. .. ,. --.. -.-..... : -I .. ---, -i -....-.: r ------' 1: .--i -.-1. a ,: t ...1 -..-13..: ,:.. i.r -.". le : --1.-I 1.1 .: is I .6 e -----, .s i : -.: -1. -i : .: -.-s.:ca:.1.1 -,r' -. ~. -.--. -s -.-1 -e it : -.r oc .10 1,
PAGE 4
-! .--, ...11 .--.-, .,1 ..-------
PAGE 5
-.-. -. -.--. : -.:s | -.
PAGE 6
--.. .1 -., ---..-r .---i
PAGE 7
.. -. s.. ..,: ...., .-, r _. .,. -.--.----s.1 a r t M.-i r -= c r.'t i .-: .! .. .1.1 .. --:-.: :. : -i ---s --:. -! ---si --1 c. -' -.-.---, .. t .-... L -r-E ..-.... --..: .; ir -.r -.: -r yr --, .; s -..--.-L : .! !." -.L l..1-'0 s --s: r. -.-: : --1: :n| 1. :. : --r --:' ..; ----v. -.--'' i --: 1 -| : -la e i n:-.1| :sc e L. --: C ia .!e rs. -11 ---, Ir -: : .1 -i : .--.e ..-, --.-; ---' i .: .L 4: --.-------.e -.1 ---, -i il --:--.. -----.--,.. !o -. | -: --..I : -, !.: -s --! i.-. -t l'--1: .-..!: :: .:--.1 ---! :. -4 -1 -.: C ---.E -.-c -.1 -..-.. -: ---... 3: .= ---. -.. -, .i i --.. 1 '. .--: .L
PAGE 8
2 .-L -: .-' s: -i.1'.=!.-::; a ist'l -a s~ NNir.:-'i:-t-1 .-..-11-..: : ..-:.s! 3, [::lt. .or .-a:! .-.-..--.5:..--.:11 .Sr:I!-1r----.|-.r.. ...-.:. -|-.-i -., ,: :-e.-r -..---. i .5" i eH.si -:1::".s.s: 1 -.'l .-i ..:r-:::-.-:,. : ::. :1-:.: -,1:. :lire.., --P -11---.:!, e r .-;'.-31'I I--c.1: 1., -s: -c-.,:, e :----. : -.2:-.r! .-.ent :s" :=r:li -:sj i:-. 11 : -..1-:...; : :---r -.-" -. :t -:':---:'. 7---. .st:ite --::er:si s :, .-.--a--..-., .-: --:-..:: si ::. --, e.. |-sr,:1 f.e ..1:: :.. i -:: -s.nl ..E ....:-..-a, -.||tv -lir L:. F -._: .'. ( st_:-:-.1 ;-.: [:-r (11:r-.,-i-:! .:5.61S[ik.cs :C sjrr: i .:i1-:: .1 -:: -i.---.. 2 .:. .: -.. : .:-i.s-at i.-:: !-.. <1-... Et 91..., :o .s -wii:i, -.-:-..-1. :|-|--, ---.---r -:t:1, -: je;t-in--
|
