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DWTz3/24/69
Statement of Farris bryant, minimum, Advisory Cmission on
Intergovernmental Relations umun- tlw Suhcouuittee on Treasury.
Post Office and Executive Office. lluuav Appropriations Committee.
April I. 1969
Mr. Chaian and lie-burs of the Con-lttec.
My nine is Farris Bryant. Since February of 1967 it has been
nay privilege to serve as Ozaimn of the Advisory Cousiaaion on
intergovernmental Relations, the agency ammo behalf 1 as appearing
today. with us are Ho. 6. Colman, Executive Director of the Coission;
John Shannon, Assistant Director {or Taxation and Finance; Elton K. HcQuery,
Assistant Director for Program Implementation; and Arthur J. Croten,
our budget representative fmm 5A.
Thu Coaluiaaion val created by Public lav 380 of the 86th Congreas.
It is charged with studying the problems and relationships among Federal,
State and local gwermnqond with dcve loping recommendations for
improving these relationships. As you know, the Omission includes
three members from this Honey-Congresmn tountain, Congresswoman Menw
Conarcaanh Ullman; three when of the Inn Senator Senators Muskie,
Erwin and Humdt; three ate-bets from the Executive Branch: four governors;
and thirteen other State lcgialat ch. county, micipal, and public
mun..." Attached to this Out-out 1.! a list of the (lo-intuit curml.
worship.
11w appropriation request for the 1970 Fiscal Year in $575.,
an inch-.um of $24,000 over the amount-"$55l.000--appropriatad for the
current fiscal year.
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we are very encouraged by the record of State legislative
action to improVe lntl rxovcmaaental relations. All you know. where
it is llppl'npriJh', rwmmmulatlmm of (he Advlnory Comissiou {or
State lrguullltlv. .u-tmn JI'L' Lr.nm|.|tm| lnt'u draft bill (em and
offered to tlu- State. for their consideration.
During the last two years, 1967 and 1968, one or more statutes
or constitutin month-outs generally following draft proponeln
developed by the Omission or consistent with Omission taco-enda-
tions were enacted in 159 o! the 50 States. The emission reco-nenda-
tion enacted in the greatest meter of Staten was one urging Statue to
adopt the real estate transfer tax upon withdrawal of the Federal
Government from this field as of January 1. 1968. twenty-six States
enacted this model bill in whole or in part.
Eleven States established agencies for local affairs or
con-unity development, along the lines of draft legislation proposed
by the Omission. Thirteen States enacted legislation to strengthen
and coordinate program for water resources and pollution control. Othet
Omission recmendaticma were adopted in from one to ten States. The
most reconncndations adopted by individual States were eleven in Michigan
and ten each in Minnesota and Washington.
'llu- limuulsemn commune to pcer a variety of activuiux
designed to carrv out lt statutan responsibilities [or tuchnlcal
assistant in rcvww ul pmpuacd federal legislation and for encouraging
dllcusalun of emerging. public prnhlvma. On request. staff members
review Pallo'll); lulln md submit comments thereon to the Burch of the
Budget or to Congressional letteea. Commission members and staff
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testify or file statements with Cammittees of Congress and State
legislatures on Commission findings and reeomandations uni as
applied to the subjecgbefore those bodies. 0n invitation, Cosmission
members and staff has appear before conferenCcs and special meetings
of national, regional. and State nrxanizations of public officials
as well as business, professional. and specialized groups concerned
with intergovernmental problems. The Omission has inaugurated an
information bulletin Service whose purpose is to make available to
key State and local governmental offlcis is and omega information on
intergovernmental matters that otherwise might not he called to their
attention. In addition, the Comission, from tile-to-time. issues
informational reports that are intended to provide policy mixers with fctual
to assist than in dealing with particular problem of Federal-
informationltmmyxmwm
State-local relations.
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Th Comission's work appears to be having s significant
impact in the dilecult field of intergovernmental relations. We are
being called upon increasineg for assistance tn and consultation
by "fft'l-lls at all levels of government. by public and private interest
groups concerned with intergovermwncal problems and by those cngegod
in Academic research.
ns cuncludc our statement He will be glad to answer any
questions .
During the 89th Congress the Intergovernmentel Reletions
Subcomitteue of the House end Senate Camitteee on Governaent Operetione
conducted joint hearings es the heels for A review and eveluetion of
the performance of the Advisory Cue-lesion W
during its first 1'ch years. An effort was made to obtain critical
appraisal: fru- public officieis. urgenintions, end ludividuele (miller
with the Cmissions work end to solicit, suggestions es to ACIR's
future role.
Pulloving the heetlngs, the Co-ltteej issued reports recom-
mending modest expansion of the activities of the Caniseion ee
follmll:
l. Initiation of eminent) occesionel regional meetings
involving Federal, State, end local officials.
Z. Sponsorship of periodic nationwide conferences on inter-
govc rnmvum 1 re lat ions .
1. increase! attention to implonncuLeLion of the Cmiseion's
rccm-endut_ons% at both Federal end Stete levels of government.
'4. Holding at leesl one Cmmiseion meeting a year outside
of W451. i m: t mi .
I. lnil in! ion of an internship program aimed at training
persons
beginning lu-wl pruicssioneil in inn-mimermntai nelations.
11w Can-{salon naught end Cur-gross epproptietcd funds for FY 1968
and I"! I'M-9 to implilvl'lt the first {out cmittee reconnection. The
lmdgnt request for FY 1970 is based on the continutetiou of the present
activitius and respOnoibiiitien n! the llllllry Commiooion and Th-
initiation of a node: internship training program along the limo
rucoumcnded by the House Committee on Government Operations following
the I905 rvviow.
Thu purpunc ol the proposed internship program is to further
the prnrcuuionni and. to some oxtont, the academic development of
"Lntcrguvornmental relation; lpociliistu" who.knxl after one yetr
with the Cummisaiun, would pursue careers alLIho State or incal
governmvnb hon-t. The program wuuid include three internl each your
whu would be assigned on a rotating basis to each of the three ACIR
staff suction! (Govetnnontal Structure and Functions, Taxation and
Finance, and Program Implementation). Each intern would be paid at
the 05-7 invel and would be eligible for a uodest tuition allowance
(not more than $400 pnr academic semester) to encourage him to carry
education
0" Ktaduniu work at an institution of higher/inlxntng in tho Hoohington
area. W11": intorquould participate in
mnnthlv arminsra conducted by ACIR senior staff newborn. In Addition,
they unnld participate in ACIR weekly staff meetings and in periodic
Cnmninlinu meetings. Noroover. ihuv would observe the operations of
brronv
upprupl'ialo- Committees of thu Cnugrons mud D. familiar- with the
programs and activities of organizations of State and local nflicialo.
Pl
Arrangumvnto have been nude III: ihn Council of State Government. the
National Cuvernors' Conference, the Rational league of Cities. the
U. 9. Conference of Muyoto, and tho Notiunnl Association of Cuuntieu
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{W to nominate candidates for the ACIR intern-
ship program. Since an importa nt purpose of the program is to train
intvrgowrmwntal rulatlona specialists for Stato and local governments
the interns would he askad to agree, in advance, not to accapt amploy-
taunt with any organization ur ngoncy in Washington, D. 0.. nor with
Um mglmml or field offices of any Federal agency for at laaat ona
yuar uitor the completion of their internship. At the cloaa of the
internship year tne interns would ha assistad in securing cuploymant
with State or local gmrmnta or organizations thereof. The annual
cost of tho program is estimated at $25,000 including tuition allowancoa.
Contributions to ACIR {rm Fonfmlcral Sources
Following the review of Clmisaiun operations by the House and
Senate Suhcommittves in [965. Congress enacted Public Law 89-733 which
Contasion'a cabling statute
amended thu Wm provlds, among other things, an
authorization for the Coarnission to accept contributions from State
and local governments and organizations thereoi. This action on in
lint- with rucunaondatiuns of the Con-mission and views expressed by
Munhers of Congress and others that thefoninion'a financial support.
us well on its brmhorship, should he intergovernmental in character.
l-anlv in i068, purlmmt to this authorization, I wrote to tho G-Nornurs
of oll Stun-s calling their attention to tho statutory provtalnn and
a.
suggesting that much State consider nkananuntary annual token
contribution, of $1,000 to the m Conclusion. Tho racponsa, w
believe. has been quite encouraging. Thus far, one-third of the States
lmvv mmlr or nullmrimd curl: cnntnhuunns and the Governors of mat
0! (hr retaining States an- ruclmnding favorable action a
3! by their loyjulatnrcs. It now appears tlvatyell over half
of the States will make in contributions to the Advisory Cosmisaion
during l-Y I970.
Public Law 89-733 also authorized ACIR to accept contributions
from nonprofit organizations. Accordingly, in July l968. the Cmuniasian
received .1 grant of $25,000 from the. Ford Puundation for the purpose
of preparing and publishing s one-volt. report that would present in
context (In- findings and recosnendetlons dmmlopcd bv the Advisory
(toinniun in all of its studies relating to urban and metropolitan
problems. @1111: project is nearing completion; the finel
dralt will be ready for the. printer in a few weeks.
Late lnai 7.111 a proposal was submitted to the Ford Foundation
for a grant to financu a study of the feasibility of constructing and
testing measures of fiscal capacity and tax effort for cities. counties,
and mum; Hith the large amount of adersl grants presently going to
local governments and with growing demands for even larger amounts
either tluruugh prnicci grants or block grants for particular functinns,
the is .l rising concern that allocations take adequate account of
("For exsgntarlretr.:1h(l;stiscnalr Limit??? iafzfglq" 251:? dlget Beverly Hills.)
jurisdictions. Deficiencies 1am data have made it appear
impossible to build such factors into prior allocation formulas. But
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recent and prospvclivu statistical develop-cuts offer hope for more
reliable cot-paratch measures. The time seems ripe for a breakthrough
on this irtmt and the study could be an important step forward. can lie
recently
m were notified W that the Ford Foundation hi has
approved .1 grant of $65,000 for this purpose. The project will begin
in the near future and it to be completed within a year.
we have been asked by
lot mu mention parxhetlcally at this point, that W
Wmmwmummmnm the Urban
Muss Transportation Administration of the Department of Transportation
Wfldertakc a study cloaer related to the
pro '1ch 1 how- iust outlilmd {or the masuremnt of local fiscal capacity
and oft-wt. nor presently nukes grants to State and local public agencies
to help finance their acquisition and improvement of facilities for urban
transportation system. The purpose of the study proposed by 001' would
he to develop sound criteria for evnluating the general ability of public
agoniies to provide the local contributions to "net project cost," and
tr devisv a framework for appraising the capacity of the individual
Applicants. The project, if accepted by the m Commission. would
payed from
rust $50.000 to $75,000 with the entire amount being mm research funds
available to DOT and would not constitute or accentuate any increase in
KW appropriation: to the Commission.
Um- lurtlwr Fuundatinn grant now is under consideration. Last
nut-ember :1 pi 1m (unfvrt'ucc was held in New Jersey under the lmut sponSOr
shin oi Llu va .lvruuv State legislature and Ill-turn University. The
conferenw brought together approximately 35 New Jersey State nmnxm
lcgialntlva lunar-rs, State depart-on: heads, and resource people from
acedcnic circ los and tho cons-unity at largo. Attention was directed
to three specific ACIR proposals for State legislative sctlon. lbs
conference providcd a uniquu opportunity Advisory Omission recou-
mcndntions to be explored in some depth with State legislative leaders
and their policy udvisors. The conference. we thought. was successful
as a pilot project and should be repeated in other States. The 00-31831
staff now is coopurating with the Council of State Governments in
deve luping Jacygl'toposal for a foundation grant to cover the costs involved
ill holding a series of similar mutiny nlnewhere dealing with State
developed by
loulnlniiVu proposalsd both organisations.
1 have reported on the latter of contributions to ACIR from non-
lvdcrnl sources at now length in order that you would be lnfonscd
as to what has transpired pursusnt to tho authorization by Congress
for ACIR to accept contributions from nonfedcral sources. In carrying
out pro lects. such as those outlined above, the Omission will make
use of outside consultants and some temponry employees. He have not
n'quostod--nor do we anticipate requesting-any additions to our
pommnont staff tor thoso purposca.
kudvmnrv Cmmlsaion Puli lit-sorta '
During the current fiscal your tho Advisory Comission has completed
and published a policy report on Tuitcrgiwcmuonial lroylens in Medicaid.
nw Conniaaion's study of this progn- focused on the hoch policies
affecting rudsrsl. State, and local sharing of responsibility for linsncing
Medicaid} Ind. in addition. diroctod attention to certain nonfiscal problems
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mumbling constitutional, legislative. and administrative changes
0th.:
1n (ha opuratinn of the program Tun/major research studies now an:
under wav. Onu, .1 study I Stntv aid tn local governments I: Wanna;
MW. u.- wuma-u study ul State-local responublllucu for
1.xh.vl-nana,.-..mmnt h'lJllO m puMlc uptuwa {a schedulud (or
cumplvtiun near tho. cluzc at (M:- Hucal vear.
11w mum-Susm as .1 u s I on t e prncllcu
nick: Stat" nuwrmmnu follow in pnwldlng financial aus' tent. to
the lovalxtivs. Thv scupc of Slatc aid is defined or purposes Hf
the an tudy as including an cuminatlun of the than; current
practices: rn 'rding intor,~,wummmtal trunshr of funds as wvll
m :sssvaxtug Ll! Muniuluv {m- rho rum-ti :1 realignment of flruncinl
rvupomziht Nth-a. B nusc chuml aid 1' extrinsny intertwined tn
Um major areas of State nd local Hal responsibilities some attention
is also mwu Lu Links .uea, : nut-lo as detail, hmvar, thln was thc
casv tn lhv Camusth study lscal Balance in the American Federal
Svsrvn that tax completed duri tl 1968 Fiscal Year. In a senau, the
Svate old :Itudv umnphmcnu .t d supple mu our fiscal hnlnnco study.
11w grnwulg impart '0 of public e luyee lahnr relatiuns in recent
wars iI- mw of the no slunllicunl dcvulo nu in puth .ulmtulstratl-m
amt intvr._.-vvrm-nt rclutiuns. llw Can-tutu I nudv of (In: pmhlmn
wtll rcvh-w the ckgruund nf the mtltranry manna g In alphwu'c organi-
4at1unl. the ~ cial problems of cmployve-euployer to tan: in the
puth at or. and State laws dealing with the organizin of public
\'!IIIOI\"V(; a And with prontbttloau Juan: strlkas. It also Mk I Ittmapt ta
/
v
r.
continulng debate on puhllc cupIOyee s a u wall
as currant col ivo negotiation efforts tat. and local govern-
monts. It will vaplon- ways of dealing with public
cmployuc-mupluwr tullu' 'ationu and will deal vi tII tlw
tl'uullllhuml' 'l val a,wsthm5 of State lulul'lvv uuudalhu: I
't'.
nflcatluu
I'Inlvmwotal ion of tmmn salon Rccmmu-udntlum
N Jrk plrasvd (0 report, Mr. Chairman, tho: the Comisntons
proposals umtinm to rccelvo favorable commutation. ACIR'I Tenth
gongnl R.-p~_r_t_,lsswd earlier this year, summarizes the progress that
has been mangw the Fodetal Idol and a. State levels.
but Pall. Congress (muted the Intergovernmental Cooperation
Act of 1005 (P.L. IO-SN), climaxing four your! of continuous effort
hv the m (rm-misaion and a host of othcru to Secure legislation
in this ll'ld. Th.- muuihus measure implements many of the moat
guru-a... mum-ad." ion: {or chl-rul acthn advanced by thv Commission
over the last nine years. In this connection. let no note. that align:
Congressman Fountain and others I'm introdutld tlw hater-
gmcrmncuuk Cooperation Act of 1969 (3.1L 7366) which is designed to
hutld on the 1mm Act by l'urtlwrlng proving and amplifying the manage-
Jr! of I'mlcral assistance. prograu. In addition, a number of other
umasnruu one or: lwing dove lopcfor consideration by the 918$ Congress.
PAGE 1
.r .Cha i a-it-.elo 31:<1 A-ilabe rs til" 11..< C-mnL t tee ly -.iame is arris Bryamt. 5 islee A-bruary of 1967 10 ha been my priva ]egte to servu as Cliairman M che Ativisory Ctamntissiasi orn Tintergoserir.mmeal iklacierts, the attency ML whosc behalf I am appeari.ng todriya'lth we aire Wr... G. Colmain, Executive lii.rector of the Canalission; -lohn Shauren, Ass istant Direcer for Taxation acid Finance -Elt<'n K. McQt.ury, Asisistal.E DI rect-ar fier Prograr-1 imp]ealantsitical; and Arthur J. Craven, el.c htadget ce.incia'ntatt ive from (3A, The Clinmiles itm was crvated by [subl ic Law MID al the 56tli Cor:gress. I E ''; churi'ed wi t.|t 'itudvar-g the pr.1bielim and relationsh [pei antoep. Federal, SLatu ant| togal glowrnmen nd wit|| duve|Dping recommenatio;15 Eut L"spr
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.....g .h ....oyer,16 ad16, n rmresau
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.. .. ... l~~ ~~~~~~~~~~. .... ..... ... Lt,:e-E '~"Q-"-lr-so Q9JuEdb
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.uig ... ..9.. ...esteTitroenuata.Rltvt ......n.....n .... .. ......e.d..a e -m it e s n G ve n e~t p ra i
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' -:.-..fr-ars t-enrl''ctr il --:y AL;1N ,n-lii 'I'l-l part iet:nate f.r. M:18 week ty 3 1,11. 1:r-et ill':.S. Ort-on-r-, l'a.se :lli1ee:iin:i : 0,-e .of she r:ou..,ross 3.1114; .i t! i v i l i t-s o f ei-gasp : 7..i r (<.. -11-. -! s !-..lvilwen -.racta e m. O,
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.s .., ...-.. -: to ut:-.nisint .' caulid idates for the ACIk inturnsliip progr.un. Si;.cti .in i.uperi_ nE purii.sv af Lhe prograni iri to EriLt. intergoveriuur-utn. re lationzi special; tats fr.r State and local governinent the interns would he .mked 10 ang.ree, in advance, not to .accept employIwat wi Eli -aisv ersetnie.tr im er us..;eucy in Wshington, D. C. .nor w[ th Ulle region:e l or Caeltl 01~:~10--; of isny i-edcral agency for ar. lettet one n'utat ter thv co...pie-ion (13 their internship, At the clelse ni the interrsl' i il vi-ar 1.10 1.1:e.-tm wald be assisted in securing en.ployment wl th St:sto or local goveramuna s or orgaminations thereof. Tlisanmiaa l t-M( 01" the progr.in'. is estiluated at $25,000 inc eluding tuition sul lalliane [ ht rib.1r-i.-1-21 01M;IR t'a'ari D'enl'i..[._rgt l_ Sources
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1-141111.1111 sir .lii[anaci...-s| siirla el 31 the' r... i iiing St.ites m. t-t-1 | lie th,-!E Je; isisite -es t the Sr.ttes wil l make ...ill .... ..t~ ..yer aim
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1-1 ry.1 11:< atti011 purd ht:Elt-el l Lv ut (!tta 110int .0".-21 inxREHKmuzz KMMEggygggligXMgXMHMXXXgEKMNKhax8/XXXKH~pHMEMMEHiggKG d'.t. L r".sali 21.1-.; a -l'i.la-.-.si:rtacie-, At: nti:' strac~01.'l tIle DC'it:erto..nsu~ Tst'sissar1-ist i.-1-. Egghymix:[MgHR]D3[HEMYJiK ntiertitle :s a E udy e lose ty i e Laced t o I lie
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it-uitarate Jereciers, se.ate de :uleinic circles sand ilc cellulat ebree s)we Lfic ACla propos ifereiwe provided a tanjque irlations to be aplored in s 3 thv tr neliev .telungare '1% partront herids, and re:ource peos inity at 3rirl',0. littentioni vos at als t~ec SGtCe legislative age Een. oplectunity Advisory Ceinunission t onie depth ws t.h Sture itogislative E cont'erence, e thought, was 3.1 he repeated in other States Th .." =atm u nt u e tg u.n re -t a
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... ......
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7r:jse .e ti-.l, -v~t np b c eipoe t "c a e
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