UF00083702_00008.pdf

UF00083702_00008.txt

UF00083702_00008_pdf.txt

ADVISORY CMIISSIOR
ON
INTERGOVERIHINIAL
RELATIOQS

Ninth Annual Report

January 31, 1968 Washington, D. C.

3--

(Draft December 15, 1967)

Economic and fiscal Crisis of Centrgl 9151a.

During le7, subjective and statistical evidence piled high to
dramatize the feet that many central cities of the Nation are facing
not only a desperate social and political crisis, but dire economic and
fiscal difficulties as well. Pew could ignore that elementary and
secondary education in the central city ghettos would have to he strength-
cncd greatly in fiscal resources and in quality of teachers if Negroes and
other ninority group children were to have an even break upon graduation
from high school.

Yet. a study of the Advisory Cosmission on Intergovernmental
Relations, covering the 39 largest Standard Hetropolitan Statistical Areas
in the country. showed that State financial aid to local schools tended
to favor suburban schools over central city schools. Hardly any States
have revised their school aid formulas to recognise specifically the much
higher financial investment required to educate disadvantaged children.
Added costs accrue for smaller classes to assure more individualised
attention. for keeping school open longer hours, for offering additional
recreational opportunities and for measures required to compensate for an
inadequate been environment. The Commission's studies show that the schools
serving low income central city children are receiving less per pupil as
veil as per capita than those serving the more affluent suburbs. It i! the

pgradon of educgtion in metropolitan America that where the needs 5;:

greatestI the regources are pggggest; the children needing education the

most are receiving the leont.
Need {gt a New boo}; gt Urbanollurgl Populgtion Belongs

The year 1967 witnessed a growing consensus on the need for re-
¢Ili1318 Federal. State and local policies-~as veil as activities in the
private sector--that tend to influence the distribution of population in
the United States. there uas growing recognition of the tremendous
future costs involved in the in-mdgration to large central cities of low
incone, nonuhite populations from small towns and rural counties across
the country. the Secretary of Agriculture throughout the year underscored
the 153-;.n3. benefits both from a social and fiscal viewpoint of retain-
ing and attracting an increasing share of the future population to small
town and rural America.

In a similar vein, recognition uas being given to the diaeconomies
of congeation-~transportation costs, environmental pollution and higher
living costs incident to further concentration of population in large
metropolitan centers. As the year drew to a close, however. new questions
were being asked about a theory of population redeployment. Some contended
that the problem of the hour was to nest present urban needs and that
"keeping people down on the farm" would not cover the great fiscal and social
deficits arising from the masses of underprivileged urban in-migrants who
are already in the large metropolitan centers and are likely to remain there
regardless of how much progress is made in industrialising the countryside.

Others contended that alternative migration patterns can and must be
encouraged, but that public policy and funds should be directed only toward
natural growth centers." Still others argued that to achieve balanced
rural growth, private and public efforts must reach first into the hard
core rural pockets of poverty.

lling Crime and Juvenile Dgliggpengy

As the year progressed, there was growing concern about the con-
tinued increase in the incidence of crime and juvenile delinquency. this
increase occurs not only in the urban centers, but continuing a trend of
several years. is found in the suburbs and rural areas as well.

Early in l967, the President's Gunnission on Law Enforcement end
the Administration of Justice delivered an impressive report backed by a
considerable number of in-depth studies of particular areas of this vital
subject. Many recomendations were submitted; those dealing with Federal
action were couched in fairly specific terms while those dealing with

State and local action were somewhat more general. As the year progressed,
however, the question of how to improve State-local relations in this field
began to receive attention comparable to that focused on improving Federal-
State relatiOns. Questions arose in connection with the Administration's
Crime Control and Safe Streets bill as to whether Federal grants for as-
sistance to law enforcement activities should go to the States or directly
to localities. Part of the argument advanced against using State govern-
ment as an intermediary in this process was the fact that only a limited
number of States possessed an overall police and law enforcement capability.

State Attorneys General, in addition to concerning themselves with
the impact of court decisions upon law enforcement and with other means
0f attacking the growth of crime and juvenile delinquency. have become
increasingly concerned with the relationship between the State Attorney
General and local prosecutors and police. Similarly, the relationship of
the State police to county sheriffs and municipal police officers has come
in for increasing attention. There is little doubt that the field of law
enforcement and administration of justice otters one of the most difficult
and challenging areas of intergovernmental cooperation in the United States
today.

Incregsing involvement 2 Privgte Sntggprire in Egbgn Problem;

the urban riots of 1967 produced wide disagreement on many points.
One point of consensus, however, did energe--the restoration of vitality
in the Nation's urban areas is an assignment surpassing the capabilities
of any one level of govsrnment and even of all levels acting collectively.
It was increasingly agreed that private enterprise must become more deeply
involved in urban problems it these problems are to become manageable and
if the metropolitan areas themselves are to remain governable.

At year's end signs were appearing of a dedication on the part of
many large business and financial institutions to the amelioration of
the problems tending the political and social fabric of the Nation's
cities. The decision of a number of insurance companies to assist in
financing low income housing through rent supplements and other devices,
and the active involvement of a large number of buoinesemen in the "Urban
Coalition" formed at the height of the summer's rioting uere decidedly
encouraging developments.

A possible barrier to private enterprise cooperation in the solu-
tion of urban problems, however, use identified during the course of the
year. A number of State constitutions forbid any commingling of public
and private funds for public purposes. these constitutional restrictions
date back to the railroad scandals of the middle and late 1800's. The
New York Constitutional Convention proposed in the document placed before
the voters of the State (which was rejected for other reasons) that the
State give positive authorization and encouragement to public-private
participation in programs designed to serve a public purpose.

at S laments come of e

The first session of the 90th congress again saw a "Perils of
Pauline" drama in regard to rent supplements. As in both sessions of the

89th Congress, the question repeatedly before each house one: "shall this
program survive?"

the Rent Supplement Program is one of the most crucial--and con-
troversial-~wespone in the attack on the so-cslled "metropolitan problem."
One of the major elements in the problem is the increasing disparity--
economic, social and fiecal--betueen the central city and many of its
surrounding suburbs. housing in many suburban communities is priced at
a figure completely out of reach of ion income families. In effect a
fiscal and economic wall is constructed around the central city which
reserves the suburbs for the middle and higher income portions of the
urban population.

During its first session, the 89th Congress enacted a rent supple-
ment plan making possible the housing of low income people in the more
prosperous communities without risking the fierce emotional opposition
that public housing projects often arouse. the program encourages private
nonprofit organisations to provide housing rather than expanding the role
of government in the construction and management of additional public
housing facilities. because the rent supplement program has the effect
of dispersing low income families throughout the metropolitan area, the
program itself faces continued opposition from suburban constituencies.
Some of the opposition seems to be racist in motivation. ln l967, however,
folloving a summer of rioting, there came a grouing recognition that some-

day, somehow the white noose" around the central city ghettoe would have
to be cut.

A crucial factor in tho bottlo for non appropriation for tho
root aupplo-oot progra- vac tho dociaion oi o III-boo o! largo ioou'onco
couponioo to naho non of tho progrua and to pool romrcoo in a coop-
orativo ottort to provido ovor Ol billion worth of low incono houaing
for control city noighborhoodo.

Hallo it ia too early to prodict ooccoaa for tho root owplo-ont
progrn, the participation of largo buoinooa ontorpriooa in tho progr-
ond tho pmiaion o! aorticiont appropriationo to iinonco tbo homing
of a aiooablo nubor of pooplo ohonld bogin to noon tho progr- tron
thou "iniant oortality" riolna which booot any non and innovotivo on-
doavoro-pnblic or private.

rovth o nunc o n

l967 vitnoaood the formation or a largo manbor oi rogional councila
of oloctod oiiicialo in tho Ratioo'a largor notropolitan arooa. l'hooo
bodioa mly noon on "cmncilo oi morn-oat" or m'o ovo thoir ootab-
liolnoot to two major tactoro: lirat, thorn ooa and ia a [roving rooog-
nition on tho part of ootropolitan and odmrban roaidonta oliho of tho
nocoaoity oi cooporation in tho carrying not of a unbor oi highly ooqlox
and intorrolotod mormcntal progtno in tho 1m. ootropolitan aroao.
It hao cooo to bo rocogniocd that tho right hand not know with roaoon-
ablo aaonrooco that the loft hand ia doing a onltitndoa of local proto-
ocnta function oido by aido in tho largo ootropolitan oontota.

Socond. a proviaion incorporatod in tho Do-ooatrotion Citioa and
Kotropolitan Dovolopuont Act of l9dsu8oction zoouroquirod, boginning
July l, U. tho roviov and cant by an oroawido body opoo cortain
Iodoral :ront-in-aid applicationa from political onbdiviaiono oi ootro-
politan aroao. Tho activation at Soction 20 in oid-yoar toquirod that
uhoronoouchbodyvooinoxiotonco.anappropriatobodyhadtocooointo
oxiotonco loot all political oubdivioiono in tho ootropolitan aroa (ind
tho-aolvoa cut of! iron poooiblo lodoral aid for a varioty oi phyoical
dcvolopont projocto in tho (canto.

Tho .onoral tondoncy in a nuabor oi arcao woo to turn to a body of
olectod oiiicialo aa tho new inotruoontality rather than an appointive body
of city plannoro. Hovovor, in aono inatancoa it vao iopooaiblo to obtain
intorlocal agro-oot on a body prior to tho July 1 doadlino. in thou
caooo oxiatin. or an bodioo voro dooignatod by tho Govornoro on tho
agoncioo to onorciao tho roviov and o-ont function undo tho Act. All
told, hovovor. only 33 man voro on doaignatod not of a total o! 203
dcaipooa. It in too oarly to iotocoat ohothor in tioo M'a or indopcndont
planning agoocioa will outrun ao tho "choooo inatruoont" no poriorn tho
rcviou and calont function.

In April. with the assistance of a grant iron the Ford Ioundation,
a conference of representatives of Councils of Government frnn over the
country was held in Hinhington. At this conference the potentialitieo
and limitations of COG's were explored frankly. It was agreed
generally that these bodies had a number of potentialities, with each
aetropolitan cos-unity deciding for itself how strong or how passive
it desired the 006 to be. As was stated on one occasion a COG can be
"anything tron an Zlk's lodge to a metropolitan governnent.

Mann c ta of ice l Government

Throughout the year, principal attention free the noun media and
the public was directed to the cities that happened to be in trouble
that day or that week. Naturally, but regrettably, attention passed
over the continuing evidences of able and respons1gl._ ctnn.nt in th.
midst of adversity. huch more was written about why ings went wrong
in Cavsnegh's Detroit than why they did not go badly wrong in Lindsey's
Ben York or Tete's Philadelphia. or Dalys Chicago, or countleee other
places. Eacepting only the Presidency, the position of big city nayor
was the toughest around in l967, for in nany cases the ultinate in
effort, dedication and ability failed to atom a rising tide of disaffection.
the ordeal of the mayors and of the officials of the large urban counties
nerited--and for the most part received--full understanding and coop-
eration from other leVelo of government.

STATE GOVERNMENT-~A NEW FRONTIER

it is beconing increasingly apparent that a considerable portion
of the "infrastructure" of metropolitan problems is soluble only by
State action, despite the absence of any Govrrnors in the so-cslled
"Urban Coalition" turned by nayors. civil rights leaders. and business-
men during the height of the sunner's rioting. Restrictions upon the
debt carrying and taxing capacities of local governnonts; criteria for
annexation of unincorporated areas; standards for the exercise of
zoning powers; machinery for adoption and enforcement of building and
housing codes; the ease or difficulty with which snall suburban cen-
nunitios may be incorporated; the independence or dependence provided
in the inherent powers of local gnwernnants in metropolitan areas--all
of these very crucial determinants of the social. political. and

economic fate of central cities is a matter of State constitutions or
statute.

Barn-tonal m!!!

Indicative of the extrenely broad range of needed State action
in dealing with the problem of the citiee. were the rcconeeendatione
edvanced in a report prepared for the Conittee on Urban Problem of
the National Governore' Conference, heeded by Governor Richard Bughee
of ew Jersey. The report offered eixty-eeven epecific propoeele for
State government action ranging from etudiee and reappraieale of local
governmental etructure to State financu of rent eupple-ente. to re-
vieion of condemetion policiee and proceduree. The report conetitoted

a highly ueeful checkliet for concerned Governore, State legieletive
leadere and local officiale.

In a related develop-ant laet eta-er, Governor Ieleon A. Rockefeller
of New York initiated the eetebliahnent of a State-Urban Action Center
to be reepmible for developing toole and providing technical eeeietence
to Governor: and State legieletive leadere eeelting eolutione to urgent
urhen problem. The Center in being financed initially with private
foundation support and ie eetabliahed under a bipartiean board of
truteee. the co-cheiruuen are former lieu York City Heyor Robert Hagner
and (or-er Minnceote Governor Sher L. Andereoe. The Center bee opened
officer in both Iev York City and 'Jeebington.

netitutee for keell i State Govern-nt

Under the leaderehip of former North Carolina Governor Terry Sanford,
and with financial eupport from the Ford and Carnegie Foundatione. the
firet of what eventually will be a eeriee of inetitutee for State govern-
ment wee eetabliehed at the University of North Carolina in Chapel Hill--
an inetitute for atate plannim. Koch inetitute ie to be a center for
reeeerch and the developer of tools and techniquee for improving State
govern-eat. lecb ie to be univereity baud, to have a eeell profeeeionel
ate. and to be governed by a board of truetaee including ea-Governore
and other prominent pereone. Bach inetitute, after conpletiq ita re-
eearcb and preparing recounendatione for coneideratioo by the Statee will go
out of operation; the naxiu life of an inetitute ie to be five yeare.
Thrown this proceee it ie hoped that the beat ninde and reeourcee can

be brotght to bear upon critical problem of State government and the
beet of experience of each State made available to the others.

Governor Sanforde unique "Inatitute for State Programing in the
Seventiee" was only one aepect of his broader "Study of A-erican Statee."
lie eleo vac a pri. mover in the eetabliehaent of the "lducetion Co-ieeion
of the Statee" of vhich 65 Statee now are .nbere. Set up by interetate
conpact, the Cor-ieeion provider eachinery for the States to pool infor-
nation and reeourcee end ehere experiencee in the field of education. In
addition, Governor Sanford'e well received book Ston Over the Stage. wee

relesaed in October l967. It presents a perceptive analysis of the
role of State government in the federal system and offers politically

prscticel recoemendations for buttressing federslism by strengthening
the States.

Establishment of Wgshiggton Office of National Govgrnors' Conference

In Msrch the National Governors' Conference opened a Hashington
office. The office was charged with following closely develop-eats at
the Federal level effecting the Stetes, and with serving es the staff
srm of the Nationel Governors' Conference in the area of Pederal-Stste

reletions. The office immedietely launched en eggressive program of
action.

Through the federal Office of Emergency Planning and the new
Governors' Conference office, States were urged to designate "rederel-
State Coordinators." Significantly, the number of Ststes with designsted
"Coordinators" increased from fewer than a dozen at the beginning of l967
to 66 at the end of the year. During l967, tuo conferences of these
coordinetors were held. The two conferences served es forums within
which Federal agencies described their programs and representatiVes of
States to1oed questions and voiced criticises and suggestions.

The neu office initiated a weekly newsletter to the Governors
alerting them to upcoming hcerings, Congressional votes and prospective
administrative actions. Through the efforts of the Office, views of
Governors on pending issues were assembled and presented to the Executive
and legieletive breaches of the Rational Government.

Rapidlx Increasing Taxes and Expenditures of State Governments

The year 1967 saw greater receptivity on the pert of citisens uitb
respect to bond issues and new taxes.

...Record tex increases were voted in a number of States

...Borrowinga to assist local government also reached record
proportions

...Californis's Governor Reegen proposed end the legislsture
epproved tsx increases of around $1 billion a year, the largest
State tex increase in the Nation's history

...Nev York State voters spproved a $3.5 billion bond issue to be
used for s variety of State and local purposes in the field of
transportation, including sisssble amounts for urban ness trsns-

portetion. This was the largest State government bond issue in
the Nation's history.

...Approsimately 85 percent of the bond issues placed before
the people in 1967 acre approved in contrast to 1966 when
barely_half of the bond issues were approved. (There_uere
exceptions to the l967 trend--in California, nearly 60
percent of the issues were rejected.)

New financing and new programs authorized by the legislatures of
the various States in 1967 were in striking contrast to the "hold the
line" stance of the first session of the 90th Congress. Many new
programs in the field of domestic government in the United States were
undertaken by the States and the local governments, in contrast to a
relative status 329 situation at the National level.

Increased Concern of Business Organizations with State and Local

Government Problems

A new force in the modernization of State and local government
emerged in 1967. The business community displayed active support for
an increased role in the federal system for State and local government,
e8pecially the latter. Often in the past, business organizations have
objected to new Federal programs on the grounds that they represented
an unwarranted intrusion into what was more ptOpcrly a sphere of State
government activity. All too often, however, the same organisations or
their State counterparts would go before State legislative comaitteea
and Oppose State government programs directed to the same general

objectives on the ground that the best government was the least
government.

The year just closed, however, can a "crossing of the Rubicon."
The Committee for Economic Development, the United States Chamber of
Commerce, and the National Association of Manufacturers took important
steps to marshal support in the business coomunity for grass root efforts
to strengthen and modernize State and local government and to utilise the

fiscal resources needed at those leVels to deal effectively with emerging
problems.

The Committee for Econouic Development for several years had been
concerned with the antiquated structure of State and local government.
It: 1966 report on the Modernisation of Local Government received ex-
tremely wide notice throughout the United States. A second report
offering A Fiscal Prggrem For A Balanced Federalism was issued in
June, 1967. In it, CED urged Congress to strengthen State tax capabilities
by giving taxpayers partial federal income tax credits for State income
tax payments.

A month later, in July, 1967, CED released its report on the
Modernization of State Government, which called for the general reforms

that political scientists have urged for several decades-oahortening
the ballot; strengthening the power of the Governor to budget, to
appoint, and to reorganize; and most importantly, rejuvenating the
State legislature as an important force in the American federal systnn.

Later in the year the masher of Casserce of the United States
adopted a policy statement favoring structural inprovenents in State
goverrsnent similar to those enunciated in the CED report. The M!
had earlier established a unit within its organisational structure
responsible for State and local govert-ent nodernisation and had conducted
enall conferences in nearly all States with State and local (Rs-bet
executives, nunicipal league and comty association directors and others
for the purpose of explaining and developing support for the new program.

l967 also marked a growing concern on the part of the National
Association of lianufacturers with regard to problems of federalism,
particularly the strengthening of State and local goverment. An inter-
goverusental relations newsletter was initiated and a person responsible
(or following problems of faderalien and of State and local govertsnent
modernisation was added to the Heahington office of the Association.

Stgte Consti tutional Revision

ln terns of State constitutional revision, 1967 was a "nixed
bag." The greatest disappointment of the year came with the fiasco of
the New York State Constitutional Convention. bogged at the outset by
partisan bickering and saddled at the end with a "take it or leave it"
package of very controversial proposals, the new constitution went
down to a resounding defeat at the polls. Go a lesser scale and despite
three years of labor the initial draft of the proposed Rhode Island
constitution wee referred back to the Constitutional Convention for re-
vision--since it faced near certain defeat at the polls. A vote now
has been scheduled for Aptillia. 0n the more hopeful side, several
States adopted individual constitutional amendments uhich called for
general constitutional revision or adopted piecemeal revisions of their
constitutions. At the end of the year, 22 States were engaged in
either overall or limited constitutional revision activity.

State legislatures began to seems a role of increased significance
in the federal system during 1967. this was occasioned partly by the
influx of new, younger nae-hers as a result of "one nanone vote"
reapportiomnt. Partly it reflected a growing recognition on the part
of the Anerican business casualty that strong State legislatures are
essential to responsive State govertssent and that responsive State govern-
ment is essential to a strong Ianerica.

010-

The activities of the Citizens Conference for State Legislatures.
and the "self-starting efforts of many legislatures for a self-appraisal
all began to bear fruit. An improvement in public climate could be de-
tected in terms of a desire to unshackle the State legislatures--at
least to some extent--and to permit them to operate as strong and effective
lanmaking bodies.

lncreggigg_§tate Piggncisl Assistance to Urban Areas

the Omission stated in its Eighth Annual ltt that the "whole-
sale involvement and participation by the State in the functions of urban
government continued to be the exception rather than the rule. At year's
end in 1966 only eight States were assisting financially in the construc-
tion of local sewage treatment plants." At year's end in 1967, 20
States were rendering such financial assistance. It is true that the
dramatic increase in State financial participation in municipal water
pollution abatement could be traced at least partially to a special
incentive provision for State government participation contained in the
Hater Quality Act of 1965. Nevertheless, it was apparent that State
governments were showing willingness to issue bonds and to raise taxes in
order to begin to fulfill one of the long neglected functional responsi-
bilities of State government. In one areao-Chicagouayor Ricks rd Daly
was one of the principal catalyzing forces hurrying along a lagging
interstate effort needed to begin cleaning up lower Lake Michigan.





In other fields as well, the number of States participating in a
meaningful financial way in areas previously dominated by Federal-local
relationships was encouraging. Eight States were giving financial se-
sistance to urban mass transportation, and eleven States were giving
similar assistance in the field of urban renewal. (See Appendix C)

80 by the end of 1967, while "wholesale involvnment and partici-

pation by the State in the functions of urban government" continued to
be the exception rather than the rule, the pattern seemed to be

changing. In another year or two such participation may become the rule
rather than the exception. Hhen States involve themselves in large-
scale programs of financial assistance to urban cansnunities many of the
arguments of political scientists, State officials, and others against
the so-called "bypassing" of the States in Federal-local programs will
become academic. Unquestionably when the States become financially

involved, they will begin to control the channeling of Federal aid funds
to urban areas.

Meanwhile, many State leaders continued to assert that the States
should be the "prime contractor" for all Federal grants--including
grants to localities-~regardless of whether they provide sons of the
matching funds. In Washington this view had more support in the House
than in the Senate or the Administration--as witnessed by the passage by
the House of the Cahill Amendment to the "crime control" bill and the

- ll -

usrrgnsalp O?
ADVISORY COEITISSIOH OP IWUWFEMAL RELATIONS
(DECFHBEP 31, 1967)

Private Citizens:
Farris Bryant, Jacksonville, Florida Cha1rm3n
Alexander Heard. vashville, Tennessee
Dorothy I. Cline. Albuquerque, New lexico

Members of United States Senate.
Can J. Ervin, Jr., North Carolina
Karl E. undt. South Dakota
Edmund S. Muskie, Waine



Members of United States House of Representatives:
Florence P. buyer. Hrs., New Jersey
L. N. Fountain, North Carolina
Al Ullnan. Oregon



Officers of Executive BranchI Federal Government:
Ramsey Clark. Attorney General
Price Daniel. Vice Chairman' Director. Office of Energency Planning
Henry B. Fowler. Secretary of The Treasury

Governor8
John Dempsey, Connecticut
Buford Ellington. Tennessee

NEISOO Rockefeller, ew York
Jones A. "hodes, Ohio

Hazors:
Real 5. Eleisdell. Honolulu. Hnuoii

Jack altcster, San Leandro. California
Arthur Jsftalin. innespolis. Winnesots
vacancy

\

lumbars of State Legislative Bodies'
Ben Barnes, Representative, Texas

C. George DcStefsno, Senator. hode Island
Jesse M. Unruh, Assemblyman. California

Elected Count! Officialo'
willian 0. Beach. Hontnonery County, Tennessee

Angus eDonald. Yakima County. Washington
Gladys V. Spellnan, Prince George's County, Maryland

near-passage of the Quie Amendment to the elementary and secondary
education hill.

However, there seemed little likelihood that the Administration
would countenance a State's rights policy on federal grants. and
votes to spare in the Senate were available to block such on approach.
0n the other hand, the Administration vas showing signs of agreeing
to a policy of State channeling if particular States would "buy in"
to the particular programs.

Establishment of stlte Departments of Eggag affairs and Communigy

Development

In 1967 the trend continued toward the establishnent of more
State agencies concerned with local government and urban affairs. The
principal newcomers were: (1) Missouri which established a full-fledged
State Department of Comunity Development; (2) Washington which set up
a similar department; (3) Ohio which created a State Bureau of Urban
Affairs; and (6) Connecticut which launched a well financed Department of
Community Development. Several States in addition to those mentioned made
organisational arrangements during 1967 for increased attention to pro-
blems of urban and local government. In Hichigan, Governor Romney re-
peatedly called for creation of a Department of Urban Affairs but has
not yet received legislative approval of the proposal.

The preference in 1967 seemed to be for full-fledged "line"
departments with substantive and financial responsibilities, in contrast
to the strictly technical assistance and advisory functions performed
by the so-called "offices of local affairs" typified by the Office of
Local Government in the State of New York--one of the pioneers in this
field. (A tabulation of State agencies showing the functions exercised
is contained in Appendix D.)

Lela-43.99 Esslgasiout 1995.... summer



turning now to more negative aspects of the evolution of the
concept of "Stotes' responsibilities as well as States' rights," a
near-stalemate continued in the very difficult and controversial question
of State taxation of corporations doing business in more than one State.
a. R. 2158 by Representative Uillis of Louisiana based upon a study
conducted by a special subcoemittse of the house Judiciary Camsittee was
pending in the House Rules Cmmnittee from late July on to the and of the
year. Opposition to any further Federal enactments in this field was led
by the Council of State Governments. It offered instead an interstate
compact designed to facilitate the adoption of a uniform formula for the
epportionr-nt for tax purposes of corporate multistete income and to
provide machinery to resolve interstate disputes over jurisdictiOn. The
development of the compact which was adopted by 14 States in 1967, and
the other steps taken by the States during the year were prompted in large
measure by the threat of Congressional action.

Cu.

Indusggigl Developgggt Bonds; A Growing troblen

During the year industrial development bonds continued to be
issued by local governments throughout the country in increasing
numbers. The use of these bonds began to have a new effect as the year
dreu to a closo--strong competition with the legitimate issuances
of State and local governments for strictly governmental purposes. The
tight noney situation combined with the increasing VOID. of the indus-
trial bond offerings were forcing up the interest rates on both kinds of
issues. it was also been-in; apparent that the industrial bend proble-
uas not confined to revenue bonds as distinguished free general obligation
bonds. In late hove-bet, Mississippi nsrketod over $l00 nillion of general
obligation industrial bonds.

An increasing number of State and local officials began to be con-
vinced that strong action by the Congress was necessary if the whole
edifice of tax exempt State and municipal securities was not to collapse.
Sentiment was increasing that Congress should in sons way curb the
issuance of industrial developnent bonds with tax exemption privileges.
the great difficulty involved in ironing such legislation use the fear
that curbing the tax exempt status of this type of issue night be con-
sidered in later years a precedent for curbing the tar exception privileges
of general purpose State and local government securities.

YEDERAL PROGIAH8--UNCERIAINTY, CONTIOVERSY, AND PROGRESS

The welfare Eggblcm

throughout the year increasing concern was expressed about the
shortconings of existing Federal-State uelfare policies and programs.
Many contended that public welfare policies initiated in 1935 had the
effect of discouraging the transfer of individuals fro. welfare rolls to
a self-supporting status. This situation stems free the [act that lost
outside earnings have been taken into account in deter-ining how much aid
the individual will be given, and outside earnings reduce tho welfare
entitlement by an equal amount. There also was concern about the lack
of incentive in existing welfare policies and programs for the recipient
to undertake adult education courses and work training that would qualify
him for s self-supporting job. The House of Representatives endeavored,
in reporting out the Social Security bent-outs for l967, to re-ody one
of these deficiencies through compulsory attendance of welfare recipients
at uork training courses and by naking it possible for recipients to earn
some money without a connensurate reduction in the welfare allot-out.
Hhile aost people endorsed the objectives of the House bill, nany felt
it use too punitive in nature. Generally the House version prevailed

in the bill sent to the President as the first session of the 90th Con-
gress drew to a close.

Coupled with dissatisfaction over current welfare policies and
programs is the strong belief on the part of many that (l) responsi-
bility for financing public assistance is incorrectly allocated among
the various levels of government, and (2) a "guaranteed annual income"
or a "negative" income tax would be a more effective means of meeting the
public assistance needs of the Nation. Others, however, believe that
such approaches would tend to remove all motivation whatever for welfare
recipients to move off the welfare rolls into productive employment.

Uith regard to intergovernmental responsibilities in the field of welfare,
some States are beginning to assume an increased share of welfare costs.
Massachusetts is scheduled to take over ell financial responsibility

for welfare in 1968, joining the ranks of eleven other States that re-

quire littlc or no local financial participation in categorical or general
assistance.

Eidcsprcad Disgrray in Federal Categorical grant System

The enactment by Congress of more than 200 grant programs during
the 1963-66 period produced dissatisfaction on the part of the recipients
with the way the programs were operating and dissatisfaction in Congress
as to the degree of coordination among the various Federal agencies con-
cerned. More and more during the year, the need was expressed for some
kind of "computerized" system of information about the Federal programs
that would facilitate participation by smaller units of government.

President Johnson, in his message to the Congress early in the
year dealing with the "Quality of Government," called for efforts to
consolidate grant programs into a smaller number of categories and to
simplify requirements for application, funding, and fiscal reporting.
The Bureau of the Budget developed prOposed legislation to authorise the
use of several appropriations for closely related or "packaged" local

or State programs. As the first session drew to a close, however, the
legislation was not yet moving.

Increasing Representation of State 2nd Local Cavemen in lgshiggton

A corollary of the proliferation of categorical grants and the
increasing difficulty of penetrating the Federal "jungle" was the
establishment by State and local governments of Nbshington offices. At
year's end l7 States, 2a cities and four counties had taken steps to
provide themselves with "on the ground" representation in the Nation's

capitol beyond that provided by their representatives in Congress. (See
Appendix D)

Poverty Prggrma: whither Cossaunig Action?

Throughout much of the year the future of the Poverty Program was
in doubt. lts authorisation was due to expire June 30, 1968, and legis-
lation was before the Congress to extend the program for an additional

year or two. lor acne tine it eeued doubtful that aw kind of poverty
bill would paaa the Bouae o! leproaantativea.

however, with tho eupport of a coalition oi Southern conecrva-
tivee and Northern "noderatea" a bill taahioned by tho Bouae Education
and Lehor Comittee managed to achieve a cantortahlo najority in the
Bouae when it finally cone to a vote in Nov-her 1967. The provieion
that aavcd the hill wae the ao-called "city hall content which placed
control over cooleunity action prozruaa eeeentially with unite of general
local Marmot-idea or countioeuvith a "hypaaa" proviaion operative
in those can where the local govern-ant chore not to initiate a con-
nunity action progru or choee to initiate it along linae not compatible
with require-ante of the lcononic Opportunity Act. Only in than can
would the Director of Economic Opportunity he upowerod to eatahlieh
direct Federal rolationehipe with private, nonprofit organization to
operate couuunity action program in than particular localitiee. The
"city hall nenbent" alleviated the concern upreeaed by acne nayora and
any county officiala about the "hypaaains" ot general local govern-out
which had taken place under the Cor-unity Action Title.

8 o Covert-rent nd the ledcral
kggutiwa m

During 1967 fort-er Ilorida Governor Ierrio Bryant, the Director
of the Ofce of hergency Planning, led tone of Federal oificiale to
no State capitale for day-long viaita with Covarnore and other State
adniniatratora tor tho purpoee o! exchanging viowa and airing problems
of Federal-State reletiona. A large number of prohlona were identified;
a conaiderahla umber were aolvod or mitigated; othara were left for
remedial action through logialation.

the lryant trips clearly hnproved the attitudoe on tho part of
both federal and State adniniatratora, and increased undoratanding
at each level of the prohlone faced at tho other level. in addition
to diacloain. inadequacies in Federal organization and procedurea, the
vieita aloo diacloaed aerioua ahortconinga in the conatitutional. legal,
and (local etructure of State governmenta. At year'e and both Oovernora
and Federal adminiatratora were arming thonaelvea to cope with the weak-
neaaea and ahortcnnings that had been identified in their reapoctive
ayetena during the court. of the year.

{due during the year Vice-Preaident lhnphrey continued hie vigoroua
program of conoultationa and "trouble-ehooting" with nayora. county offi-
cera and other local smartnont otticiolo. At hie onconroacoucnt a
Vaehington occting was convened of a croee aection of echool hoard nanbere

tron acroaa the country for the purpoae oi' diacnaein; and qweationin; new
federal progrueo and policioa.

The 3011!! Plen

At the opening of the 90th Congress neerly 100 seperete bills were
introduced in the house end senete to provide Pederel-Stete-locel revenue
shering elong the generel lines of the originel "ileller-Pschnen plen"
under which e designeted percentege of Pederel income tsx collections
would be set eside for distribution to the Stetes (end/or locelities) with
few strings ettschsd. As these assures were introduced studies uere nsde
by the Netionel Governors' Conference, the Advisory Co-ission on Inter-
gavernnentel leletions, die letionel Insane of Cities, end others. It
bees-e incressingly epperent thet neny questions would heve to be resolved
before e setisfectory fornuls for sherin. of federel revenues with Stetes
end locelities could be devised. lhe proponents of revenue sherinx begsn
to concede thst "some" strings would need to be etteched to Pederel bloc
greats. Sinilsrly, opponents of the plea begen to concede thet sons fare
of generel fiscsl support would be necessery in the yeers eheed, other

then thet which could be sccomodeted within the frenework of the cete-
goricel eid system.

In October l967, the Advisory Omission on lntergovermentsl
Reletione, efter nore then s yeer's study of fiscel federelisn" edopted
s reco-uendetion ceiling for s 'niddle of the reed" spprosch to the
question of revenue shoring. lhe Co-ission urged brosdenin; the 'fiscel
nix" of Pederel grsnts-in-eid to include not only (1) cetegoricel greats
for purposes of stinuletion end demonstretion but else (2) fmctionsl bloc
grents for the purpose of continuing support uithin designeted fmctionel
fields of significent Netionel interest end (3) generel support funds
elloted on the besis of populetion with vsrietions in tee effort teken
into eccount. lhe Consission went on to sey thet if the Congress should
decide to distribute genersl support filldl directly to locelities es uell
es to the Stetes, sefeguerds would be required to insure thst locsl

spending of Federel generel support finds in no wey conflicts with existing
comprehensive Stete plsns.

W A? re: CNN

Anericss federal systen is on triel todey so never before in this
century of crisis end cheese. hopeful signs one be found et ell levels
of government end within the perspective of the pest three decedes some
suggest drestio ohengesufor the better. Yet, when neesured seeinst

present end prospective needs end expectetions, progress see-s dis-
coursgingly slow.

Throqhout the Istion's history e distinguishing feeture of the
federsl systen hes been its rensrhsble cspecityuwith but one feilure-
to sdspt to chewing circus-tent end shiftim hands. but now the rete
at which circmtences end densnds shift end chengs is of e totelly different

mnitude end inposes s new dinension.

naapita thia nav di-noion, nany Stataa and localitico atill cling
to policioa and practicaa that hardly oatiafiad tho nodaat raquiraaanta
of a bygona an and an grouly monitod to copo with today'a urgont
challongaa. Daapita thia now div-anoion. Iona policioa and attitudaa
of tho 'adoral aatabliahnant continua aoro attmod to tho probla-a

and aolutiona of tho thirtioa and fortiaa, than to tho horizon of
tho aavantiaa and .lhtlll.

Tho challean of today are cast in foatarm racial nut and
civil dioordat, hunooning in and dolinqooocy, alar-ing difforoncoa
in individual opportmity for oducation and onployuant. niatorically,
thaaa conatituto Ioroly ono nonualbait a highly drauticuchaptar in
tho ago-old Antican atrmlo to fulfill tho ai'hty prouiac of Joaraon'a
Doc laration within and throqh tho balancod. conatitutional ayaton (rat-ad
by tho Pomdcra in tho Croat Clutter of 1789.

Tho manna: of mating thoao challangoa will dotaruino whethar va
Iaintain a govarnnantal ayaton noticed by partnorahip and wolaaona
conpotition mung; Stato, and local lavala; it will dotanino
ii inataad--in tho faco of throatanod anarchy-ma aro forcad to aacriiico

political divoraity to achim tho aocial unity nocaaaary to tho aunival
of tho Ration itaoli.

II. CHANGIS II COHH138IOI HINBZISBIP AID Sill?

ln Hercb 1967 terrie lrysnt, Director of the Office of lnergency
Plenning, use eppointed by President Johnson to the Connission end
designetcd ss Chsirmen, succeeding Prank lens uhose tern hsd expired in
1966.

At the beginning of the 90th Congress. Senstors Sen J. Ervin, Jr..
North Ceroline, Keri E. Hundt, South Dekote, end Edmund 3. Huskie, Heine,
were reeppointed to new terns on the Conniseion by the President of the
Senste.

At shout the scan time, the Speaker of the Housu reappointed Congress-
nen L.. lountsin, Iorth Caroline and Florence P. buyer, leu Jersey, to
neu terns on the cunnission. The Speeksr eppointed Congress-en Al Ullnen,
Oregon, to the Con-ission, succeeding lugene Keogh of New York.

The following sdditionsl eppointnents to the Commission were sn-
nounced by the President in Hercb, 1967:

Price Deniel, Austin, reuse, public nenber (subsequently
designsted as Vice Chsirusn); Mr. Deniel succeeded Thames 8.
Eliot. former public nonber end Vice Cbsirnsn.

Alexsnder Beerd, public nenber, Cbsncellor, Venderbilt
University, lsshville, Tennessee.

Dorothy l. Cline, public neuber, Professor of Politicel
Science, UniVersity of New Mexico, Albuquerque, succeeding
Hrs. Adeiside Halters, public senber fro- Cbspel Hill, North Ceroline.

iensey Clerk, Attorney Generel, use designeted s representstive
on the Conniseion from the Federsl Executive Drench succeeding
Robert c. Denver, Secretsry of housing sod Urbsn Development.

Buford Ellington, Governor of Tennessee, use eppointed to the
piece fornerly occupied by Cerl Senders of Georgie.

Theodore I. hcleldin, Heyor of Beltinore, use sppointed to the
piece forneriy occupied by Borneo Goldner of St. Petereburg,
Plorids.

lea Bernes, Specter of the Texss douse of lepreseotstives, uus
appointed to the piece fornerly occupied by Herion Crsnk of
Athensss.

Jesse Unruh. Sports: of the Californis dose-bly, uee sppointed to
the piece fornerly occupied by Charles I. Heiner of Pennsylvsnis

uhose tern on the Concussion hsd expired end who hsd been sp-
pointed to the Iederei Judiciery.

- 18 -

ln April l967 Gladye I. Spell-an, Chairman of the Doard of
Cannieeionera, Prince George'e County. Haryland, wee ap-
pointed to the place on the Com-ieeion formerly occupied
by Edward Connor, Supervieor, Hayne County, Hichigan.

Mr. Connor, who had been a member of the Cmnnieeion eince
ite inception, paeeed away in mid-1967.

ensue thonald, Commieeioner, Yakima County. Haehington,

wee appointed to the place on the Cbmmieeion formerly occupied
by Barbara Hilton, County Cannieeioner. weehington county,
Oregon, who reaixned from the Go-ieeion in April 1966.

In May 1967 Jack D. Halteeter of San Leandro, California,
wee appointed to the Cameiaeioo to eucceed Richard C. Lee,
Mayor of New haven, Connecticut, whoee term had expired.

Aleo in Hay. Governor Jemee A. Rhodee of Ohio wae appointed
to the place on the Oannieeion formerly occupied by Robert
Smylie of Idaho uhoee term had expired in 1966.

With all of these appointmente the Commieeion'a memberehip wee
again complete an of May 23, 1967.

In early October, following Governor Bryant'e departure fron hie
poet ae Director of the Office of Emergency Planning and hie return to
private buaineee in Ilorida, Preeident Johnaon appointed hin ae a public
member replacing Governor Daniel who had eucceedad Hr. Bryant ae Director
of the Office of Energency Planning. The Praeident deeisnated Governor
Bryant to continue to earva ae Chairman of the Commieeion and Governor
Daniel to continue ae Vice Chairman and to eerve ae one of the three
repraeentativee on the Commieeion from the Federal Executive Branch.

In early Novenher the Preeident reappointed leleon A. Rockefeller

of new York to another term on the Commieeion aa one of the four Governor
mcnhere.

Mayor Theodore I. Hchldine tern on the Cbmnieaion expired in
December, coincident with the expiration of hie term ae Mayor of Baltimore.

The following changee occurred in the profeeeional etaff of the
Commieeion:

Elton K. McQuery joined the etaff ae Aaeietant Director for
Progran Implementation. hr. thuery previouely had aerved
ae Heetern Regional Director of the Council of State
Governmente.

Hr. L. 3. Cable: wee appointed ea an Economiet on the Con-
nieeion'e etaff. Hr. Gahlar had been eerving ae an leonomiet on

the etafi of the International Finance Divieion of the
Treaeury Department.

-19-

Scheduled to report for duty around January I. 1968, u a Junior
Analyst on tho Cumin-100- staff, in Carl w. Steuben, In. Mr. Stanton
bu been serving .3 a graduato assistant at the State Murat, at
Nov York where he has completed work for his doctorntn.

111. NEW REPORTS AND RECOMMENDATIONS ADOPTED
BY THE COMMISSION DURING 138 YEAR

In 1967 the Omission approved two major reports with recoenen-
dations for action by Federal. State and local governments. These were:
(1) a report dealing with the effect of State and local taxation policies

upon industrial location, and (2) a comprehensive report dealing with
fiscal balance in the American federal system.

The Commission also adopted a position statement in support of
S. 698, the proposed Intergovernmental Cooperation Act of 1967 introduced
by Senator Muskie (D., He.) in the Senate and co-sponsored by several
other Senators from both sides of the aisle. Similar bills were intro-
duced in the House by Congressmen Fountain (0.. 8.C.). Ullman (D.. Ore.).
buyer (8., NJ.) and a masher of others.

the Commission also adopted a policy statement (which was held in
suspension subject to possible later reconsideration) relative to the

eligibility of State legislative committees and agencies to receive Federal
research grants.

STATE-LOCAL IAXATION AND INDUSTRIAL LOCATION

In recent years all levels of government have demonstrated concern
over the economic health of the areas they serve. While State and local
governments do not possess the variety of tools for affecting economic
growth possessed by the Federal Government, they are exhibiting a general

tendency to replace their former "passive" or neutral role toward economic
growth with active programs.

the relationship between State and local taxes and industrial loca-
tion and growth has been repeatedly examined by citisens' committees.
chambers of commerce, promotional groups, and scholars. Some public offi-
cials have argued that State and local taxes are such a minor item of
business costs that they cannot significantly influence business decisions.
They argue further that in exchange for its tax payments, business receives
services from State and local governments which are of equal, if not
greater Value than the taxes paid. This line of argument concludes that no
one enjoys paying taxes and that industry's complaints of State and local
tax burdens are normal reactions to the payment of taxes; that business

threats to move elsewhere are merely ill-advised attempts to win special
concessions.

The counter argument advocated by business groups and industrial
promotion organizations is that State and local gOVernmenta have taken
advantage of the limited mobility of business in times past to impose tax

STAFF

(Ls of Datinbor 31, 1967)

"I. G. Colman, Bsucutivc Diroctor
Elizabeth c, Green, Aduinistrativs Assistant
Francis D. Bucklcr. Secretary
Francis x. Tippctt. Statistical Assistant
randra Osbourn, Librarian
Dolores Boyd. Clark Typist
Ronald Ross. Clerk Typist
Joseph Richay, Clerk Typist

John Shannon, Assistant Director (Taxation and Finance)
Jacoh W. Jaffe, Senior Analyst
will 5. Wyara, Jr., Senior Analyst
L. n. Gablor. Economist
Rope arindin, Junior Analyst
Wary Ranrick. Sacrctary
Sue Ann Reynolds. Secretary
Inez Rountraa. Statistical Typist

David 3. Walker. Assistant Director (Governmental Structure and Functions)
Albert J. Qichtar. Senior analyst

Page L. Ingrahnm. Senior Analyst
Janus H. Pickford, Senior Analyst
Thorns C. Hanna, Junior Analyst
Karon usagcnscn. Secretary

Linda Tophan. Secretary

Elton K, McQucry, Assistant Director (Program Inplenentation)
Eugene R. Elkins, Analyst
Jackie Hollnca. Secretary
Jean L. Dorsey, Sccratnry
Lavinia Clnrka. Sacratary

ii

burdens which were out of line with ability to pay. the situation of
railroads, taxed heavily upon unprofitable operations, is often cited.
business contends that it lives in a competitive climate and that State
and local tax burdens in excess of those imposed upon similar business
located elsewhere tend to restrict the growth of business at the high
tax locations.

The Comission's study of this general area found that:

l. The relative importance of the tax differential factor in
industrial location decisions appears to increase as the location process
narrows down to a particular jurisdiction within a general region.

2. Differences in tax levels among widely separated States exert
little influence on plant locations. As between regions, non-tax factors
such as access to markets, and labor and supply costs are decisive.

3. Only among local governments within a State, and especially
within a metropolitan area, do low tax loads exert some discernible
pull on plant location.

lo. Because States generally have been careful not to get "too
far out of line" with their neighbors, tax differentials as among States

within the same region usually appear too small to have a strong plant
location influence.

After consideration of the foregoing and other factors:

1. The Commission concluded that early identification of signifi-
cant shifts in the industrial base of central cities, suburban communities,
and non-metropolitan areas would facilitate more effective intergovern-
mental planning. Therefore, the Cousission recon-sanded that the President
direct the appropriate federal agencies to give early and favorable con-
sideration to assembling on a continuing basis more timely and detailed
geographical infonnation on industrial location trends, including a break-
down among central city, suburban, and rural portions of Standard Metro-
politan Statistical Areas.

2. The Commission recommended that States, by statutory enactment
or administrative regulation, set forth enforceable physical presence
rules to govern the jurisdictional reach of their income and sales tax
administrators; the Commission further reconmmnds that the States, through
collective action, strive to make such physical presence rules as uniform
as possible.

3. the Commission was aware that retention or repeal of the tax on
business personal property is a policy issue the State alone can resolve
in full awareness of its own local circunstsnces. BoweVer, the Commission
believed that in framing their business tax policies, States should give a

high priority to eliminating or perfecting the locally administered tax

on business personal property because it discriminates erratically among
business firms. Therefore, the Conniesion teen-pended that States eliminate
the tax on business inventories and either move the administration of the
tax on other classes of business personalty (notably machinery and equip-
ment) to the State level or provide strong State supervision over the
adainistration of the tax to insure uniformity. It recounended further
that States reimburse local governments for the attendant loss in revenue

by making more intensive use of State imposed business taxes.

a. The Commission concluded that the practice of making special tax
concessions to new industry can have baneful effects on our federal system
by setting in motion a self-defeating cycle of competitive tax undercutting
and irrational discriminations among business firms. Therefore, the Com-
nission recommended that States avoid policies calculated to provide special
tax advantages or concessions to selected groups of business firms, and

frame their business tax policies along general rather than special benefit
lines.

5. Recognising that interlocal competition for economic development
is a natural and healthy manifestation of local home rule and that any
State intervention designed to prevent this competition should be handled
with care, the Commission nevertheless concluded that the practice of
negotiating the assessment of new industrial property solely at the local
level may produce a discriminatory tax system that is open to abuse. There-
fore, the Commission recommended that States provide adequate technical

assistance and supervision in local property tax assessments to insure uni-
formity of treatment.

FISCAL BALANCE I! THE AMERICAN FEDEEAL SISTER

During part of 1966 and most of 1967 the Commission engaged in a
very long and comprehensive study of fiscal balance in the American federal
system. The study encompassed the size, shape and significant features of
fiscal federalism; the history, development and present operation of the
Federal grant-in-aid system; fiscal disparities among local governmental
jurisdictions within metropolitan areas; and in-depth case studies of
central city-suburban disparities in twelve selected metropolitan areas.

The Commission found the need for a new look and a new approach to
Federal financial aid to State and local governments. It found many weak-
nesses in the Federal categorical aid system both at the Federal level and
at the State and local level, many of the latter being rooted in State

constitutional inadequacies. Among the startling findings emerging from
the Commission's review of fiscal disparities in metropolitan areas were:

1. An increasing fiscal disparity between central cities and
suburbs, particularly in the Northeast and Midwest.

- 23 -

2. the paradox of central city poverty in the midst of metropol-
itan plenty strikingly illustrated by the fact that metropolitan areas
account for 65 percent of the population, 70 percent of taxable assessed
valuation, three-quarters or more of Federal personal income tax collec-
tions, and 80 percent of bank checking accounts; but these areas also

account for most of the nation's poverty, crime, delinquency, and civil
disorder.

3. A concentration of "high cost citisene"--children in school.
the elderly, welfare recipients--in the central city, with the prospect
that this concentration will increase in the future.

6. Central city educational expenditures lower than in the
suburbs, not only on a per capita basis, but also on a per pupil basis.
Hhere the need is greatest the support dollara are fewest:

5. A local tax burden in the central cities, measured against
income, more than one-third greater than in the suburbs. Growth in
State and Federal aid has not been sufficient to counteract growing

dieparitiee in per capita tax revenues between the central city and
suburbia.

A listing in eusmary form of the Mission's recomsndstions arising
from the entire study is set forth below:

1. BASIC STRUCTURE OF FISCAL PEDERALISM

A. Broadened Fiscal Mix and Greater Fiscal Flexibility in federal
Aid to Stitea and Localities.

1. Congress and the Administration adopt a flexible combina-
tion of Federal financial assistance to States and
localities to consist of categorical grants-in-aid,
general functional block grants, and per capita general
support payments. The Federal support payments, adjusted
for variations in tax effort, could be made to either
State or major local units of govern-eat; they should
not conflict with any existing comprehensive State plan.
(Chairman Bryant dissented and Hayor Naftalin dissented
with respect to the comprehensive State plan requirement.)

2. Congress authorise the President to submit grant consoli-
dation plans, such plans subject to veto by either house
within a period of 90 days.

3. Congress and the President reduce the number of separate
authorisations for cheral grants-~as a general goal a
reduction by at least half the present number starting
with consolidation in the fields of vocational education
and water and sewer facilities.

I-

b. Congress support legislation proposed by the Adlinie-
tration to authorize a single grant application by State
and local governments for interrelated projects and
joint funding of projects containing components deriving
funds from several Federal sources and that the States
enact similar legislation where necessary.

5. The bureau of the Budget simplify and systematise
the varied matching and apportionment formulae for
existing grant programs.

3. §£reggthening State and Local Fiscal and Tax Systems

1. Serious consideration be given by the States to
providing more constitutional flexibility for long-
range State financing.

2. A better balance in State and local tax systems be
achieved by more effective local use of the property
tax, the adoption of broad-based State taxes, and the
shielding of basic family income from undue burdens
of sales and property taxes.

3. the productivity of the sales tax be strengthened
by protecting low-income families from undue tax
burdens on sales of food and drugs.

a. The productivity of the local property tax be
enhanced by State action to help localities in
relieving low-income fenilies from undue property
tax burdens.

II. METROPOLIIIR FISCAL DISPARITIES

A. Greater Involvement of Private Enterprise in Urban Press!!!

l. States initiate constitutional and statutory action
to remove barriers to greater private enterprise
involvement in coping with urban problems and to
enhance public-private cooperation.

B. §£5engthening Local Government Organisation and Neighborhood
Initiative

1. Fragmentation of the local tax base be prevented by
authorising a State agency, subject to public hearing
and court review, to consolidate or dissolve local
governmental units within metropolitan areas, to stop
the use of interlocal contracts that contribute to
fragmentation, and to reduce State aid to local
governments not meeting statutory standards of economic.
geographic, and political viability. Ocovernors Rhodes and
Rockefeller dissented.)

- 25 -

2.

5.

Neighborhood initiative and self-respect be fostered by
authorising counties and large cities to establish. and
at their discretion to abolish, neighborhood subunits
endoued with limited powers of taxation and local self-
government. (Governors Rhodes and Rockefeller dissented.)

Cities and counties provide, without Federal aid, adequate
funds and staff to improve their fiscal and program coor-
dination of Federal grants.

Congress expand the current program of financial ss-
sistance for State establishment of urban information
and technical assistance to small communities to in-
clude all cnmunities regardless of population.

Federal, State and local financing of neighborhood
information centers end referral services be autho-
rised to orient in-migrents and others to the demands
of urban society.

C. Reducing Disparities in Educational Financing

1.

3.

A.

State school aid formulas be amended to reflect higher
per pupil costs for disadvantaged children, especially
in densely populated areas; amendment to Elementary
and Secondary Education Act to authorise use of avail-
Ible grant funds in support of such action.

States authorise regional school property taxing
districts to assist in equalizing the property tax
burdens of school financing between central cities and
suburbs. (GoVernor lockefeller dissented in part.)

States authorise and provide financial aid for
specialised educational facilities on a multi-
district basis.

Federal Government encourage and provide financial
assistance for multi-district educational arrange-
ments. (Congressman fountain dissented.)

D. ggproved Statistics for Hetrggglitan Areas

1.

A national system of social accounts be established
with special emphasis on the development of such data
for individual cities, counties and Standard Hetropol-
itan Statistical Areas. as well as State and national
aggregates.

Internal Revenue Service expand its statistical reports

on income to provide data on individual units of local
government within standard Metropolitan Statistical Areas.

- 26 -

3. Existing or new nongovernmental organizations establish
date fecilitiEl to measure comparative performance levels
of local governmental units for the major urban functions.
This effort should look toward setting optimal standards,
and collecting, analyzing and publishing data.

111. ADMINISTRATION OF FEDERAL CATEGORICAL AIDS

A. Lgproved Federal Coordination and Management

1. Coordination of Federal grant programs being administered
by a variety of Federal departments and agencies be
strengthened through the Executive Office of the President.

2. The authority to review and approve plans developed as a
condition of Federal formula-type grants to State and local
governments be decentralized to Federal regional offices
and the wide variations in boundaries of Federal administra-
tivr regions be reduced.

3. Federal Executive Boards be brought under Bureau of the
Budget supervision and at least one full-time staff member
be provided for each of the major Boards.

6. The President establish a computerized information system for
grant administration, formulation of intergovernmental fiscal
policy and management purposes; Congress should establish
a similar system for review of grant programs and for
other legislative purposes and tapes and other data pro-
duced from such systems be made available to State and
local governments.

B. Simplification of Administrative Controls Under Federal Grants

1. Congress authorise the Comptroller General of the 0.8.
to certify State auditing systems and those systems of
local governments receiving sireable grants directly
from Federal agencies, in lieu of fiscal audits by Federal
agency personnel.

2. Congress enact pending legislation to modify the single
State agency requirement associated with Federal grants-
in-aid to State governments.

3. Congress enact general legislation, consolidating insofar
as possible into a single eneactment, those planning
requirements to be applicable to existing and future
grant programs.

u27-

6.

IV.

Congress revise Section 701 of the Housing Act of 1956,
to strengthen comprehensive planning at State, regiOnal,
metropolitan and local levels, and to require review and
canment by State planning agencies of project proposals
impinging upon State or local comprehensive plans. The
Cunnission took no position on assignment of responsi-
bility within the Federal Government for financial
assistance to State and local planning activities.

THE STATES AS EFFECTIVE PARTNERS IN THE FEDERAL SYSTEM

A. Strengthening the Executive

1.

2.

5.

States amend their constitutions to reduce the number of
separately elected State officials.

States, where needed, amend their constitutions to permit
the governor to succeed himself.

States, by constitutional or statutory action, provide for
a gubernatorial budget covering all estimated income and

expenditures to be submitted to each session of the legis-
lature.

Each State develop a strong planning capability in its
executive branch for development of long-range policies
and plans for gubernatorial and legislative consideration;
for provision of a framework for functional, departmental,
and regional plans; and for assistance to the governor in
budget-making and program evaluation.

State constitutions be amended to authorise the governor
to reorganize and shift functions among departments and
agencies, subject only to a veto by either House of the
State legislature within a specified time period.

States themselves provide, without Federal aid, adequate
funds and staff to improve their fiscal and program co-

ordination of the Federal categorical grants which they
receive.

8. Strengthening the Legislature

l.



States act to remove certain restrictions on the length
and frequency of State legislative sessions; that those
States now holding biennial sessions give serious consid-
eration to annual sessions; and States authorise payment
of State legislators on an annual basis in an amount
commensurate with the demand on their time. (Governor
Dempsey dissented.)

- 23 .

2.

3.

States provide for year-round professional staffing
of major State legislative committees.

State legislatures establish machinery for following

Federal legislation and for presenting State legis-
lators' views at Congressional hearings.

IV. mmmmmm
WIZATIW All)!!!" common mwnmn'

During the past two years it has becone increasingly evident to
many that sons nev and hard looks need to be taken at population trends
in the United States as they affect the future place-ant of population
in urban places of various sise. A order of different studies are
mdervey as to veys in uhich the in-nigretion to central cities of ion
income. poorly educated people my be slowed end productive enploynant
found for these people in places other than highly congested setropoli-
ten areas. he Co-ission's study is directed to the intergovernmental

aspects of the eeny policy questions associated with future population
growth and distribution.

Along the major areas examined in the study are: past end present
population trends; (b) disecononies of urban congestion in private and
public sectors of the Rational econony; (c) question of a National ecooosic
develop-ant and urbanization policy; (d) Federal end state incentives for
industrial location and urbanisation including the question of priorities
for State end local industrial develop-ant credit corporationsI and
priorities in federal aid progress and in public contracts; (a) potential
of nee towns as a setbod of coping with increased urbanization; (f)
problens involved in planning, regulating end building large new con-
nunitiee end the roles of federal, State and local governments and the
relationships between public and private sectors; (3) questions of land
assembly and development, and the character of municipal government for
new tovns; and (h) governmental and adninistrative techniques that can

be used to regulate neu co-nnity develop-ant in accord uith public
policy objectives.

A draft report on this subiect is bail; considered by the
Co-ission at a late January or early Yehruary seating in "68.

mammal-r 0? com tmsumon (I mooson
0? 1mm STAT! uvmm
COLLICTIOIB

Work is beginning on perfecting a methodology for recording annual
infornation on State tax collections and with increases in collections
factored anong (a) natural economic growth; (b) rate increases; (c) other
statutory changes. 'lhe neu date vill be published by States and will
afford public officials and scholars an iqrovcd perspective of State
tax phenoeene. A ainilar periodic tabulation my be ettaepted for
local nonpropsrty taxes.

9. Progress in lnplenenting the Recouendetions of the Omission

Since the Advisory Omission is s continuingrether then s tunporery
body. it is eble to epprosch its work selectively end to consider nroblens in
depth. It use esteblishod es s result of growing recognition thet the problens
of intergovernmental reletions cannot be resolved by the spasmodic efforts of
tenporsry agencies, but require the susteinsd end seesoned ettention of en
esteblished body. It recognizes, however, thst its own velue end plsce in the
federel systen will be detersinsd by its ebility to nsks constructive contribu-
tions thet produce significsnt inprovenent in reletionsbips Dong tedersl.
Stete, end locel egencies of govertnent. Therefore. the Oo-sission considers
the function of iapluentetion just es inportent es the research end study func-
tion end devotes s significent shere of its energies to stiwleting end enem-

eging the doption of its teenendetions by lletionel. Stets. end locel govern-
nents.

During the yeer, in order to give proper ettention to the
inplenentetion of the Omission's work. e third Aesistsnt Director
use edded to the stei! to have prinery responsibility for init istive
end follovup activity with rcgerd to the implementation of Co-ission
recanendetions.

The following is s su-ery of recent developents et the
federal end Stete levels of goveth with respect to recmendetions
edopted by the Co-ission.

stionel Oovernnent

Recornendations and-2 by the Cornission to the 'etionsl Covert-zen:
for legisletive sction ere usually introduced es bills by the congressional
representetives on the Commission fro: the Senate end house. The admission
works closely with the Subcommittees on lntergovernnentel Reletions of the
Govern-cut Operations Omittees of the House end Senste. The Omission
elso works closely with the hecutive Office of the President and with
department and agency officials on administrative, procedural. and lenie
letive prOposals affecting intergovnrmaental reletions.

federal Egnisletinn Enacted

During the first session of the 90th Congress onlv one previous

ACIR recousendstion wee onscted into Lee. The euthorieing legislstion

for the Office of Economic Opportunity was mended to provide thet locel
cumunity ection nrogrems be conducted under the eunarvision of local units
of generel goverruent (cities. counties and towns) with such errsngments
subject to "by-pass" in certain situations. This mend-ant, proposed by
Representetivu Green (D., mcgo'g wee supported by some mayors end nost
county officiels throughout the Country. It pernlluls tho recomondetion
nede by the Coeueission in its 1966 report on Intergchrnnentel Roletions in

the Poverty Program .

COHSULTINTS
(During 1967)

Hillizn Anderson, Professor Emeritus of Political Science. University of "innesote
Frank nne. former Chairnnn of the Counission

John E. Pebout. Director. Urban Studies Center. Rutgers The State UniVernity

Frederick L. Bird. Financial Consultant "evtoun. Connecticut

John C. :ollons. Professor of Political Science, University of California. Los Angeles

"illimv U. Cessellc. assistant Director. Rational Hunicipol League

Herrill J. Collett. Consultant. Arlington. Virginia

Charles P. Conlon. Executive Director. Federation of Tax Administrators

John J. Carson. consume. Washington. D. C.

George H. Deming, Consultant, Pffice of the Surgeon General. Public Health Service.
washington. D. C. ("esignod a. \CIR Consultant February 1967)

Daniel J. Blazer. Professor of Political Science. and Director. Center for the Study
of Federalism. Temple University

Wayne T. Geiseinger. Attorney and Labore'nnngeount Arbitrator, Columbus. Ohio

Daniel . Grant. Professor of Political Science. Vanderbilt University

Clyde C. Hall. Public Interaction Consultant

Victor Jones. Professor of Political Science, University of California. Berkeley

Eugene C. Lee. Vice President-Executive Assistant. and issociate Professor of

Political Science. University of California. Berkeley

Frank C. Moore. Chairmen. Idvisory Board of the Office for Local Government.
State of New York

Joseph A. Pechnnn Director of Economic Studies. The Brookings Institution

James P. Pollock. Wurfin Professor of Political Science, University of Hichigon.
and former Vice-Chairwnn of the Commission

John E. Powers. Clerk, Supreme Judicial Court of Hessnchusetts, end foraerly
"ember of the Commission

H. Clyde Qeeves. "ice President. University of Alnbsre end turner Connissioner
of Revenue, Cornemnelth of Kentucky

Kelvin U. Snead. Staff Assistant, Joint Counittee on the Drgnnizrtinn of the
Congress

Robert P. Stenduan. ircctor. CIC, Committee for Economic Development

Mabel Walker. ExeCutive Director. Tax institute of Inericn

Ronald E. Uolch. assistant Executive Secretary, Property Taxes. State cord
of Equalization. Sncrsnento, Californin

nuabgu u. Zuhrov. Professor of Pcononics. University of Colorado

111

[edergl Legielgtion Introduced

begielation introduced, but not yet enacted, in the firet eeeeion
of the 90th Congreea doeigned to inplc-ent recounendationa of the Con-
niaeion, include the following:

l. The ounibue Intergovernmental Coopreation Act of 1967--
S. 698 OtueItie, et el.) and 8.1. 5522 (Fountain), 8.1.
5523 (buyer), B.R. 5521. (Faacell), llJ. 5525 (Renee),
.8. 5526 machcn), and 11.1. 5527 (Ullman). The propoaed
legislation is an expended version of the predecessor
legialation introduced in the 89th Congreee (S. 561).

(a) Title II providce for improved echinietration
of grants-iu-oid to the Statea (the initial
title covera definition). The entire title
vea endoreed by the Couleeion at ite nine-
teenth seating (January 18-19, 1965) and the
epecific provieion for increaaed flexibility
in connection with "aingle State agency" re-
quire-enta in Federal grante-in-aid van
taco-sanded in Statutgg and Abigaletruive
Controla Associated with ledorel Grant: for
Public Aaeietence, Hay 1964.





(b) title 111 penite Federal depart-cute and
agenciee to provide epecialized or technical
eervicea to State and local unite of govern-
nent; tbie provision vae endoreed by the
Co-ieaion at ite twelfth meeting,

December 13-16, 1962.

(c) Title IV eetabliehea a coordinated intergoverno
uentel policy and improved ahinietration of
:rante for urban develop-ant; coat of the
title'a proviaiene are hand on remendationa
(nanotan iron the Cmieaion'e report on

Impact oi Federal Urban Developgnt Prgggg
on Local Gavemggganiegtion and Planing,

----

January l9, and ita report on the 59g}.- of
Special Die_tricte in Aperican Government, Hay 1964.





(d) litle V of S. 698. and all but one of the lion!
companion neaeuree providee (or more ayete-atic
congreaeional review of future granta-in-aid
to State and local govemente (geriodic

Conger!in Reenactment of l'ederal Grante-

-in-gd to State and gee; governmentg,
June 1961).

(e) Title VI of S. 698, and most of the House
bills. euthorize the President to suhnit erent
consolidation plane to Congress under
terms conpareblo to the Reorganisation Act
of 1969: the Gunnission endorsed this provision
at its April 14, 1967 meeting.

(f) Title VII of S. 698, relates to the acquisition.
use. end disposition and lend within urban areas
by the General Servicee Adminietrstion and seeks
to sesure greater conformity with the
lend utilization progress of effected local
govern-ents- the basic principles of this
title were endorsed st the Commission's
ninth meeting. ay A. 1962.

(g) Title VIII of the Senate bill establinhte e
uniform national relocation policy with respect

to relocation peynents end Advisory assistance
(this title implements several recommendations
advencod in the Conniscion'e report Relocation:

Uneggel Treatment of People end Businesses
Qiepleced bl GovernnentI January 1965).

(h) The lest title of S. 698 establishes a uniform
lend acquisition policy for Federal and federally
assisted programs in an attempt to encourage
acquisition by amicable agreements with owners and
to pronote greater public confidence in govern-'
mantel acquisition practices- the basic provisions
of title were endorsed by the Commission at
its April 16, 1967 neeting.

hearings on S. 698 and other intergovernnentel legislation were
conducted by the Senate Subconnittce on Intergovernmental Relations on January
31' February I. 2. 6. 7. end 97 and March Zl end 22, 1967. All of the House

neasures were referred to the Subconnittee on mecutivc and Legislative
Reorganisation of the Govern-cut Operations Conmittee. No action was taken
on the House bills. during the 1967 session.

2. Separate legislation providing for periodic con-
gressional reviev of grente-in-eid hes also been intro-
duced in the 90th Congress including 3. 658 (Hundt).

S. 735 (Scott). and LR. 8196 (Long, 1d.). Both Senete
bills were referrod to the Senate Causittee on Government
Operations, and the House bill was referred to the

House Committee on Govern-en: Operations. o sction has
been taken by either connittee. (geriodic congressional
Reassesenent of Federel Grants-ln-Aid to State and

Local Governnents, June 1961.)

5e

6.

Ceparate legislation ha been introduced dealing with
relocation of peoole and buainaeaea diaplaced by Federal
or federally aided public works programs. (1.3!. 336
(Cohelan). 77.. 5523 (Fountain). 'IJ. 7073 (Hall). 11.39..
1056: (Warner). and 11.2.. 1:651 (Pepper) were referred to
the zlouee Connittee on Public Works and IIJ. 62k (Gonzales)
and V1.3. 201.9 (Adana) were referred to the Renae Govern-eat
Operationa Connittee. All of these eeaeorea incorporate
the Omissione relocation recouendatione. No action
baa been taken on thin legislation.

An mendzaent to the buck Act (lo 0.5.6. 135-110) permitting
Statee under specified conditione to levy property taxee
on privately owned property located in Federal areae vaa
introduced by Congreamn kepinall (Colorado) ('?.".. 3892)
and by Senator .tuakie (3. 1366). The iiouee neaaure wae
referred to the itooeo fmittee on Interior and lneular
Affairs. and the Senate neaeure to the Canittee on Govern-
nent Operation: and consequently to the Suhcocaittee on
Intergovernmental relations. "0 action hae been taken by
either Comittee.

gtate and Local Taxation of Privatel
Dune" Huang Located in Federal Arena, June l96l5.

An amendment to the Internal 'zevenue Code permitting
individuele to claim a credit against Federal income tax
for 60 percent of their State and local income taxea, in
lieu of deducting euclx toxee, wan introduced by Conereanan
Ullnan on January 10, 1367, (1:... 1615). A ainilar leaeure
wee introduced in the Senate by Senator Pearson on Key 10
(S. 1763). The chief difference betveen the two ie that
the latter allows a 54 percent deduction for each taaea.
The ouee bill wee referred to the flouee Omittee on Raye
and .Jeans and the Senate Bill to the Senate Finance
Comittee. i'o action hae been taken on either neaeure.

gradual-State Coordination of Personal lncoee Taxea.
October 1365).



Legielation anthoriainy the Secretary of Treaeury to
enter into mutually acceptable enreeuente with Statee
for Pederal collection of State intone taxee vae in-
troduced by epreeentative Ulla-an on January 10, 1367
(3.9.. 161) and m referred to the Cmittee on "eye
and Zeane. l'o action hue been taken. (Federal-State
Coordination of Pereonal Incone Taxes. October 1965).

7.

Several bille unending the Internal Revenue Code to
dieallov for incone tex purpoeee the deduction of
rent paid (or the uee of micipelly financed in-
dustrial plente under certain conditione vere intro-
duced in the llouee. No of the bille carry out the
Co-iaeion'e reco-endatione contained in ita report
on Induetrial navel t bond linenc June 1963.
the two bille are 11.3. 7979 buyers and 3.11. 7986
(Fountain). Other neeenree introduced would go further
than the C-ieeion reed-ended and one uould outlee
indoetrial revenue bonde entirely. The other hille
dealing vith the eubject include 11.l. 876 (Mini-h).
11.3. $685 (lune). 8.9.. 5519 (Zeblocti). 11.9.. 9172
(Cor-an). 11.11. 9162 (tannin). 11.3. 9162 (M110).
11.11. 9203 (11in). 9671 (Duleki). 11.11. 10169

(Ullnan). and 11.11. 11665 (lyrnea et. e1.). All of
theee aeaauree have been referred to the Way- and
Hanna Co-ittee. but no action hen been taken. In

the Senate 8. 1282 see introduced by Senator nelaon
and referred to the Senate finance mittee.

henbent of the federal Eetate tax increeain the
federal credit allowed for death tuea paid to the State
vaa introduced by Congreaeean fountain and Contraan
Ullean on April 11, 1967 (11.11. 8329 and 11.11. 8351
respectively) both were referred to the Comittee on
Raye and Keane. but no action hae been taken. (_Co__-_

ordination of tederel-Stnte InheritanceI letate. and
c_ift Katee. January 1961.)

State and Local Cover-mot

One or more atatutea eimilar to draft billa developed by the Con-
miaaion or conaiatent with Commieeion raconmendationa were enacted in

moat Statea during the l966-67 biennium.
Commiaaion'a 1968 State Legialative Program.

The draft bille appear in the
The following ia a liat of

the State legialation eimilar to, or embodying proviaiona of. theae bills
developed by the Ca-iaeion to implement ita reconendationa. The coverage
below may be aomeuhat' incomplete for the 1967 enactmenta in a few States
uhoee eeaaiona continued through moat of the year.

Taxation and Finance

1.

h.

5.

6.

State collection of broad-baaed local aalee taxea.
1966: Virginia.
1967: Colorado, Ohio, Texaa and Utah.

State collection of city income taaee.
1967: Michigan

Authorization for local governmente to invert and receive
intereet on idle (unda.

1966: Significantly broadened authority in Kentucky.

1967: new Mexico (propoeed State conatitutional amendment
to broaden authority), South Carolina. Broadened authority
in South Dakota and lorth Carolina.

State technical aaaiatance to local government debt management.
1966: Kentucky.
1967: Alaska.

Property tax reform and changer.
1966: California.
1967: Arizona. Ntu Jersey, renneaaee and Hoahington.

Adoption of real eetate tranafer tax (documentary stoup tax)-
1966: Delaware, Hawaii, Michigan and Rhode leland.

1967: California. Colorado. Georgia, lllinoie, Maine, Nevada,
New ampahire, North Carolina, Ohio. Oklahoma and Vermont.
Statea that raiaed ratee to add on Federal tax that expirea
January 1, 1968: Minneaota, Ihode laland. South Carolina,
Tenneeaee and Heat Virginia. Kanaaa and Oregon enacted lave
requiring declaration of conaideration paid for tranater.

Authoriaation of exchange of tax recorde and information.
1967: Georgia.

.36.

6.

10.

ll.

12.

Structural

l.

2.

3.

Use tax credits for sales paid in other States.
1967: Colorado, Hawaii, Utah and Hashington.

Requires evidence of payment of personal property tax on
automobile as a condition for registration.

1966: Georgia.

1967: Arkansas.

Adoption of State personal income tax.
1967: Michigan and Hebraaka.

Bringing State income tax provisions into harmony with
Federal Code.

1966: Kentucky and Vermont.
1967: Kansas, Maryland and ebraska.

State regulation of the issuance of industrial development
band. a

1967: Arkansas (prohibits lessee of facility fro-
purchasing or having an interest in bonds); hinnesota
(State agency approval required), north Carolina (State
agency issues bonds).

and functional Relationships

Authorisation for local units of government to exercise
functions jointly or to contract with one another for per-
formance of functions.

1967: Arkansas, hichigan, Hontana, South Carolina
Tennessee and Washington.

Authorisation for metropolitan, county and regional planning,
and for establishment of planning and development agencies.
1966: Missouri and New Jersey.

1967: Illinois (Northeastern Illinois hetropolitan Ares),
Indiana. Ohio, lieu Rexico, North Dakota, and Vermont.

State agency for local affairs or community development.
1966: Colorado, Illinois, hissouri and New Jersey.

1967: Connecticut, Kissouri (gives departmental status to
office established in 1966), Ohio, Minnesota, Montana,
Vermont, Hashington and Wisconsin.

Authorite' countyvuide agency to review creation of special
districts, boundary changes and incorporatinns.
1967: Hashington.

Liberalising procedures for municipal annexation of territory.
1966: Georgia.
1967: Arisona, Colorado, Kansas and Oregon.

. 37 -

10.

ll.

12.

13.

14.

16.

Authorization for tonnation of councils of local officials.
1967: Arkansas, North Carolina, Ohio and Tennessee.

Provision for local governments' exercise of "residual" home
rule powers.

1966: Massachusetts constitutional mendment approved in
November.

)hnucipal water supply and sewage disposal planning and regu-
lation of wells and septic tanks.

1966: Maryland.

State aid for local sewage disposal and water supply.

1966: Georgia (authorisation expanded), Hisconsin.

1967: Arizona, Colorado, Connecticut, Hichigsn, Missouri,
Nebraska, Pennsylvania (constitutional nenbent authorising
bond issue), and Hashington.

State assumption of all public uelfare costs.
1967: Massachusetts.

Uniform Relocation Assistance.
1967: Indiana and New Jersey.

Authorization for adeption of building codes by reference.

1967: Kansas, Minnesota (authority expanded), Montana and
Utah.

Broadening availability and reciprocity of public employee
retirement systems.

1967: Michigan, New Hampshire, Pennsylvania and Utah.

Authorization for State and local governments to acquire and

preserve "open space" and grant tax credits for scenic easements.
1967: Connecticut, Colorado and washington,

Authxrizins establishment of county subordinate service arc--.
1967: Utah.

State aid for low income housing.

1967: Hawaii (rent supplements), New York (capital grant
for louvrent assistance program expanded), and new Jersey
(demonstration grants for construction or rehabilitation).

- 33 -

Actual draft language has not been developed for all Commission
recommendations. In these instances, policy statements are submitted for
consideration of the States. Ihe following listing summarises action
taken in the States consistent with these Comission proposals. In other
cases, States have taken actions consistent with ACIR recommendations, but
along lines differing from the specific approach incorporated in the Com-
mission's draft bills. Such action is also included in the following
listing:

Taxation and Finance:

l. Easing restrictions on local debt.
1966: Illinois, Michigan (permits simple majority vote for
G. 0. bonds for home rule villages), and Pennsylvania.

2. Property tax reform.
1966: Virginia.
1967: Idaho, Tennessee, Florida and Nebraska
(exempted household goods).

3. Exempting Business Inventories from property tax.
1967: Idaho (gradual phase-out) and Hinnesota.

h. More intensive use of personal income tax.
1967: California, Iowa and Haryland.

5. Uniform apportionment formula for corporate income tax purposes.
1967: Hawaii, Utah and Oklahoma.

6. Eliminate charge for out-of-state sales tax audit.
1967: Texas.

Structural and Functional Relationships

1. Stricter standards for incorporation of new municipalities.
1966: Colorado.
1967: New Mexico.

2. Authorization for metropolitan, county, and regional planning.
1966: Louisiana.
1967: Missouri, lew York (broadens the regional planning
responsibilities of counties) and Hisconsin.

3. Authorization for local governments to form authorities for
management of areawide transportation facilities.
1966: Haine and Virginia.
l967: Hawaii, Indiana (for counties with first class cities),
Minnesota, Michigan, California (authorises Santa Crus
metropolitan Transit District), and Washington metropolitan
municipal Corporation given authority for mass transit).

b. State financial assistance for urban transportation facilities.
l967: New York.

5. Authorisation for State and local governments to acquire and
preserve "open space."
1966: Virginia.

6. Authorisation [or metropolitan charter or study commissions.
l966: Hissouri and Florida.

7. State establishment of a metropolitan council of government.
l967: Minnesota metropolitan council for
Minneapolis-St. Paul area).

8. Coordination of State programs affecting water resources
development and supply.
wt.cmins
1967: Arisona, hinnesota, Hontana, North Carolina, South
Carolina, and Washington.

9. Restricting soning authority to counties and larger municipalities
in metropolitan areas.
1966: Kentucky.

10. Strengthening State water pollution control programs.
1966: Colorado, Georgia, Kentucky, Maryland and Wisconsin.
1967: Arisona, Connecticut, Nebraska, Washington, Indiana,
Kansas and Heat Virginia.

ll. State sharing in local urban renewal costs.
1966: Rhode Island.
l967: Connecticut and New Jersey.

12. State financial aid to low-income housing.
1966: Hassachusetts and Michigan.
1967: Alaska (authorised Governor to prepare plan),
Connecticut (rental housing for the elderly) and New Jersey.

l3. Authorisation for establishment of vocational education on
an areauide basis.
1967: New Mexico and Hontana.

lb. Authorisation of areauide achinistretion for water and sever
facilities.
1967: Connecticut (creates Southeastern Connecticut Hater
Authority).

15. Coordination of Stats props-s looting oator roaourcoa
dovalop-oat and supply.

1966: Hisoonain.
1967: washington, Ariaona. South Carolina and Hontam.

16. Expands authority (or joint usroiaa o! pooora.
1967: locus.

17. Granting authority to momlitias to amorouo planing.
m, and subdivision mi in Ringo am.
1967: lortb Dakota.

l8. uboralisin. Matteo Lava.
1967: lanoaa.

l9. Authorisation oi study to oonaidor tho oatabliahin; o! a
division of building codoo.
1967: Massachusetts.

a steering co-ittao consisting oi roprsaootativaa o1 sororai Itato
mug Code Aconcios not in mm. Hisoonain. in loo-bot and agrood to
(on a conforms o! Itato ouiciala to study building codes and standards.
to chance tocbuical intonation. and to (aoiiitato appropriato rodsrsl-
Itato oooporation in this liold. this roproaonta tho initial oonaidoratioo
by tho States of proposals advancod by tho Advisory Co-issiou in its
"not: on Will261m. whom
Statoa wore urged to tats a non activa rolo in tho formulation and onlotco-
oont of building codas. rho Stoorins Omittoa intonda to call a national
conloroooo of appropriato Stato officials concamd vith building codoo
and standards todiccuac furtbor tho ostablisl-oot o! a pot-aunt
pulsation of such oltioialo.

ADVISORY mammal on W1. nunaw
Hashlngton, n. c. 20575

January 31, 1968

Dcar Hr. Prautdcnt:

I have the honor to auhatt the linth Annual laport
of the Advisory Conaiaalon on Iatargovoru-antal lclatlooa,
pursuant to Public Law 86-380, which requlraa tha ooh-la-
alon of a report on or borer: January 31 or each year. A.
provided in tho statute, a copy of this report is also both.
transntttcd to tho Vic- Prosldcnt and to tho Speaks: of the
louaa of leproacntattvio.

Respectfully auhuittod,

larria lryant
Chair-In

Tho Prcaldant
The white nouaa

1v

VI. omen MMIU muss

he Co-ission, in l967, continued sctivities designed to

csrry out its ststutory responsibilities for technics! essistsnce in

the revise of proposed Ieders! legisletion end for encoursging discussion
of surging public probleu. Stsff enters revieeed about 35 bills, end
subeitted co-ents thereon to the Iureeu of the Budget or Congressione!
co-ittees. Co-iesion nenbers end stsff slso testified before, or filed
steteeents to, cousittees of Congress end of Stete legisletnres lad 8tste
constitutions! conventions end revision co-issions (including the
Herylend snd New York conventions end s revision omission in Tennessee)

on Co-ission findings end recon-endstions es epplied to subjects before
these bodies.

In order to fenilierise concerned citizens oitb the Co-ission's
functions, ectivities, end progrsns, Col-issioo neebers end steff ends
are then so sppeerencns before snnus! conventions end specie! meetings
of w.regions!, end Stete "mm of Mn: officials end
business, professions! end specie! groups. the Co-ission sponsored
e lotions! Conference on legisletive lesderehip designed to iqrove
co-unicstions between the Stste legieletures end the Coqress. the
Co-ission slso begen iqleeentstion of s Presidentis! directive to
orange for consultstiou with bonds of ltste end locsl goverI-snts or
their representetives in developunt of Peders! rules. regnlstions,
eteodsrds, procedures, end guidelines. Pinelly, the Co-ission published
s new infornstion docment end begen s Periodice! Indexing Service.

letlonsl Conference on Legislative Leadership

The Co-iesion sponsored s llstione! Conference on legielstive
leedership. held in L'sshington, D. 6.. October !3 end lb. The Conference
use stteoded by Senste Presidents Pro Ten. Bot-e Speakers end liejority
end linority lenders of the legislstures of the severe! Stetes. lhe
psrticipents reviewed present legislstiee strmgdss end weeknesees.
explored veys of developing closer rslstionships with the Congress, con-
sidered the iepect on the Stete legisletive process of Pnders! grents-in-
sid, end examined the pros end cons of revenue shering.

ms end Consultetions with Stsgc end as! gggicuu

On November !l, 1966. President Johnson issued s neeorendun to
the hesds of verious Yeders! qencies notifying then thst:

To the fu!!est prectice! extent I went you to tote steps to
sfford representetives of the thief hecntche of State end
loco! governs-at the opportunity to edvise end consult in the
deveIopnent end execution of proureles ehich directly effect the

-2-

conduct of State and local aoirs...l ookig the Director
of the turaau o! the Iodget to work with you, with tine Advisory
Couission on lntergovernnsntal Relations, and with the public

interest groups representing State and local government in

developing uaeiul and productive arrange-ants to help carry
out this policy.

On June :8, l9, this ne-orsndu uos iqlusotod by lursao of
the Met Circular Io. A-OS, the purpose of Itioh is:

...to afford chief onecutivos of irate aid local gov-mots a
reasonable opportunity to count on significant proposed Federal
rules, regulations, standards. procedures. and guidelines...
applicable to Federal assistance progrou. As an alternative

to direct consultations, the Circular provides for assistance

by the Advisory emission on Intergovernmental Relations in
arranging to obtain state and local advice and co-snt on such

setters, in cooperation with State and local general govern-ct
associations.

lqlo-eotatioo o! Circular A45 began a July 23, 1961, with the
iolloudng pnblic interest groups participatin is the review procedures
Rational Covernors' Conference. Omncil of State Govern-ate. international
City Kansgors Association, lotionsl Association of Cor-atlas. Iational
league of Cities, and United States Conference of Hayors. by Decoder ll,

l9, 13 proposed regulations fro- seven tedaral agencies had been
circulated to these groups for cement.

low as ion 0 t Publica i

in order to fulfill its cloarindtouo and infor-tional activities.
the Main in I961 continued to oosodlo selective infor-tion on
certain intorgovoruntal problons, to identity the sojor smoo of
Momtioninordsrtosorvaesscuvoniostreloroncopoint,ondto
prepare sonograsa sI-riaiu presently available bit relatively
inaccessible data in Iedorsl agencies and other sources union vill assist

various levels or govern-ant in dealing with iinancial and adainistrstive
problem of on intorgovornnantal nature.

In "arch. the Col-lulu Mush LW
MW. Ibo Iandhook was desigud to: (l assist
Stats legislators in preparin enabling legislation. (2) aid local
legislative bodies in satin; decisions regarding the use and negotiation
of agree-ants or contracts and in opproviq tau, (3) aid local abinia-
trators in draltin and negotiating intorlocal ogroo-nts and contracts.

and (a) help fill a idor-tion gap confronting public service grows
and individml citisons to want to better understood this device and

encourage its tee. ?art I of the lardbook presence a brief general
diacuasion of interlocal agreeunta and contracta with specific exuplaa
of the kinde of problems that have been surmounted by then. It includes
a discussion of the constitutional and statutory provisions drawing on
both modal bill language and actual enactments. For thoaa interested

in nora detailed infatuation there it an annotated bibliography,
including general referencea and s state-by-State liatin. Part II
reviava the apecific closenta included in agrenta and contracta

and provider guidelines concerning their drafting with croea referench
to pertinent aections of the subaequent nodel and sample agree-onto.

'Ihe guidelinea are followed by nodels and eaanplea, conpriaio; the bulk
of the mm, which provide a selection designed to hidilixht the two
baaic types of agreements-41) thoae providing govern-ant aervicca on
a contractual basic and (2) thoaa authoriaing joint mdartakinze of a
function or joint Operation of a facility.

In April the Conniloion began a Periodical Indexing Service,
covering journala of State leaguea o! sunicipalitiea, journela of State
county asaocietions, and nevelettere of university bureaua of govern-cot
reaearch. me ACIR mearch ataff had found the intonation contained in
theoe publicationa to be a valuable reaaarch tool; in order to nke this
intonation nore readily accessible, the index uaa started. the index
aeduaiaeo articlaa of general intereat, descriptiona of new techniquae,
end case atudias on the solution of particular wideapread problem.
Copiea of the index are circulated every month to librariaa, government
reaearch bureaua, and organiaatioos of State and local govern-ante.

MA

0mm 0! m mm 881W 0' IMML canon
M RICA!- was 1961 AID 1N8

Objoct cuutuuou (1n moon- 0! dollar.)





6 n I,
W
hm! muc- .316 8374
ham! haunt. (rename, butch,
tnwnnce. FICA) 22 26
In"! and trust-prunes of parson- 8 32
hot. luau, a! muo- 6 7
hue and math 7 £0
0&0: nice. It 10
um... of och-r out 15 13
Supp... uncut. 3 6
Ruins: .
510
mm:
mu. am...
1967 an
1968 0:10

aunts and taut. from other haul uncut

196'! O
1968 u

Ion-'0"! m.

1967 0023.
1963 .523. (d!!! bode! 167)

APPENDIx 3

SUMMARY OF IIPOIHATION ON EXISTING STATE OFFICES OF IDCAL AFFAIR!

State
Name of Agency

Year established
Location

Functions
Advisory, Coordinating and
Technical Assistance
Fiscal advice
Municipal management
Eng. 61 public work.
leg. aspects of intra-
state govt.relations
Research, statistics A
infatuation collection
Personnel training
Boundary 6 fringe prob-
lens
Assist Governor in coor-
dinating State activi-
ties affecting local's.
Recommend programs and
legislation
lnterlocal cooperation

Financial Assistance
Supervise Local Pinancea

Planning Functions
Statewide planning
Local planning aesist'ce
Coordinate with regional
planning
Coordinate with State-
wide planning

Program Responsibility
Urban renewal a redevelop-
cent
Poverty
Housing
Area redevelopment

Statutory Citations

New York
Office for Local local Affairs
Government

1959

Within the Exec.
department

XX X KN

NY Consolidated
Lava,Chap.335

Alaska
Agency

1959

Office of the
Governor

x N X 18"



x1

of const.

--

A.8.b.l9. 180 et
seq. 8ec.lk,Art.x

Rhode Island
Div. of Local e
Metro. Gov't.

1961

Dept. of Admin-
iatration

H31

P.L. 1961
Chap. 93

SM 0? 1100mm (I msrnr; sun 0771038 N we. MAIIS (cout'd)

State Tonneaeee Ca 1 ifmia Penney 1vania
[lane of Agency Office for Local InunOvern'tl Deptmf Community
Government Council on Affaire
Urban Grouch
Year aatabliahed 1963 1963 1966
Location Office of Cowt. Office of the Independent
of l'raaanry Governor Adainmept.
Funct one

Mvieory, Coordinating and
Technical Aaeiatance
Piecal advice
Hunicipa1 lame-ant
Eng. 5. public vorka
lag.aapecta of intra-
etata govt.ra1ationa
Iaaaarch, etatietice 5
information collection X X X
Poraoml training X
Ioundaty 5 fringe prob-
lene
Auiet Governor in coor-
dinating State activi-
tiea affecting local'a X
laco-end program 8
1egie1ation X
lnterlocal cooperation x x

I

M

XXX

nancial Aaaietanca
Superviae local Viuancea

Plannim Punctiona
Statewide planning
Local planning aeeiat'ca X
Coordinate with regional

planning X
Coordinate with State-
wide planning X

D1

Prograa Reeponaibility
Urban renewal 6 redevelop-
went
Poverty
Bouains
Area redevelop-eat

FNK)

Statutory Citationa lave. 1963 Gnap.1309, 1963 leorg.11an 1,
Chap. 205 State; 01.323, Act 532, 1965 Regular
1965 State. Beeeion (ap.2/l/66)

07-

SWY 0' IMHO" OI EXIST! STAT! omens 0' m1. ARM (cont'd)

State Colorado Illinois Kev Jersey Hashington
Name of Agency Division Office of Dept. of Planning 8
of Local local Commity Conunity
CoVernnant Govern-ant Affairs Affairs Ascy.
Year established 1966 1966 1966 1967
location Executive Office of Dept.in the Office of the
Department Governor Ixecu.lr. Governor
Function;

Advisory,Coordinatin3 6
Technical Assistance
fiscal advice X
Municipal nanagenent
Eng. 6 public works
leg.aspects of intra-
state govt.relati0na X
Research,etstistics &
info.cnllection X X
Personnel training X
Boundary 6 fringe prob-
lems x
Assist Governor in coor-
dinating State activi-
ties affecting local's X X
Recasnsnd progress end
legislation
lnterlocsl cooperation

xx 8 I"
N

K
N

KN

Financial Assistance

scans
at
w

Supervise local Finances

Planning lunc tions
Statewide planning
local planning assist'ce
Coordinate with regional
planning X X
Coordinate uith State-
wide planning X

XX
XX

Program Responsibility
Urban renewal & redevel-
opnent
Poverty
Housing
Area redevelopment

Statutory Citations 8.3.23 .3.2194 Asaenbly 3.3.78, 196?
1966 1965 Bill 861
(Approp. 1966
Act)

:secacac
e~e-o-c-

..

some! or revenues on mama sun omens or men. mans (cont'd)

State Hieeouri (bio Bieconein
lane of Agency Dept.of Depart-ant Dept. local
Col-uni? of Urban Affaire and
hire Affaire Development
Year eetabliehed 1967 1967 1967
location Independent Independent Independent
Admin.nept. Adein.bept. Exec.nept.
m2:

Advieory, Coordinating a
Technical Aeeietance

Piecal advice X X X
Municipal name-en! X X X
£113.6- public vorlte X
lapaepecte of intra-

etete govt.reletione X X
Ieeaerch, etatietice 6

info.collection X X X
Pereonnel training X

Boundary a fringe

problem X
Aaeiet Governor in coor-
dinating State activi-

ties affecting local'e X X X
Ieco-end progrene and

legielation X X X
lnterloeol cooperation x X X

Financial Aeeietance
Sunerviee Local Pinencee

P lennim lunctiona

Statewide planning X
Local planning eeeie'ce X x5 X
Coordinate with regional
planning x X X
Coordinate with State-
wide planning X X
Prograe Reeponeibility
Urban renewal 6: re-
development X
Poverty X X
Boneing
Area redeveth X X6
Statutory Citatione 8.3. 129 Subetitute 8.3. 135, 1967
1967 $8.695, l967

8m 0? IIIPONTION (I sumac STATE omens 0' men AHMB (cont'd)

Ststa
lane of Agency

Paar astablishad
location

nggtionl
Advisory,Coordinating 6

Technical Assistance

riscal advica

Municipal managanant

ln3.6 public works

los.aspocts of intra-
state govt.ralationa

Rasaarch,statistics a

info.collection

Personnel training

Boundary 6 fringe
problaaa

Assist Governor in coor-
dinating Stats activi-
ties affacting local's

Rocco-and prograns and
legislation

Intarlocal cooparation

Financial Asaiatanca

Supervise local Finances

Planning functions
Statewide planning
Local planning assist'co
Coordinats with ragional
planning
Coordinata with Stato-
uida planning

Program Rasponsibility
Urban rannwal 6 rs-
davolOpnant
Povorty
Housing
Area redavolopnant

Statutory Citations

Connecticut Ninnasota
Dept. of Offica of Local
Community 5 Urban Affairs
Affairs

1967 1967
Independent Office in Stats
Admin.Dapt. Planning Agancy

X X

X

X X

X X

X

x3

X

X

X X

X

X

X

X
P.A.522 8aca.b.ll.4.12.
1967 4.13, 6.16, 1965;

Chap.898, 1967

-50-

Var-out
Office of Local
Affaira7

1967
Offica of tha
Governor

KN

lacoptivo Auth.
Approp.
Ant

Source:

Refers to administration of the Rural Redevelopment Fund

Department and Cannission of Housing and Community Development
administers other programs, notably those of direct administra-
tion (poverty program, housing. etc.) rather than those of
supervision and assistance. It renders advice on fiscal
probleea related to its programs, collects statistics and
reconends legislation.

All State financial aid to localities for urban renewal,
poverty programs, nass transit, etc., is channeled at the dis-
cretion of the Director (or Couudssioner) of the Agency (or
Department).

The Washington Stats Agency is given responsibility for
"Administration or coordination of state programs and
projects relating to camunity affairs for the planning and
carrying out of the acquisition, preservation, use and
development of land and provision of public facilities and
services for fully carrying out the state's role in related
federal grant or loan programs."

Effective October 15, l967

Refers solely to the functions of the Ohio Office of Appalachia
within the Department of Urban Altaire.

The Vermont Office was sat up by executive authority only,
and is aueiting statutory authority to undertake the functions

proposed.

Prepared by ACIR

TA!!! 0? com

Page
commi.tn Memberihlp s e e e a e s e e e e e s s e e 0

Staff

. O O C C C O C O Q 0 O O O O U C O O O O O O I I O O

ConlultlntO e o e e s a e e e e e a a o a e o e o e e I I 0 iii

latter of Transmittal . . . . . . . . . iv

Some Highlights in Intergovernmental Relations in 1967 .

pa

Urban America: Cities in Distress . . . . . .
Racial Unrest and Civil Disorder . . . . .
Economic and Fiscal Crisis of Central Cities . .
Reed for a New look at Urban-Rural Population

3.1.nce a a s e a e e e e a e s a a o e s e e s e a
Rising Crime and Juvenile Delinquency . . . .

Increasing Involvement of Private Enterprise in
orb. Pr0b1.u' e a o e e a a e e e e e a e e

RentSupplementsComeonge ..........

Node-

UN

Growth of Metropolitan Councils of GoVernment .
Hanning the Ramparts of local Government . .

o~u~s-ua

State Governmentv-A New Frontier . . . . . .
Gubernatorial Concern . . . . . . . .
Institutes for Excellence in State Government . .
Establishment of Washington Office of lationel

Governors' Conference . . . . . . . 8
Rapidly Increasing Taxes and Expenditures of State

Government. a e s s e s e e e e a e e s a e e e s a 8
Increased Concern of Business Organisations with State

and Local Government Problems . . . . . 9
st.t. Conltltutlonl nevt.n a e e a s e e s a e e e 10
Increasing State Financial Assistance to Urban Areas. ll
Establishment of State Departments of Urban Affairs

NJO

andConnmityDevelopment ............ 12
Stalemate on State Taxation of Interstate Co-erce 12
Industrial Development Bonds: A Craving Problem 3

Federal Programs-~0ncertainty, Controversy, and Progress 13
The welfare Problem . . . . . . . . 13

Widespread Diearray in Federal Categorical Grant

Sytten. e e e e e e e e e e e e s e e e e s e e e e 1
Increasing Representation of State and local

Government. uahinSton a e s e a e e a e e a e e 16

APPBIDIX C

STAI! AID TO LDCALITIES SUPTIEHZNTING TB! IDEAL CONTRIBUTION
UNDER SIIICTID PIDBIAI.GIANT PROGIAHB

DECEMBER 1967







Vaata Airport Boapital Urban Uatar and Urban
Treatment Con- Con- Rancual Savor Maaa Trana-

State Worka a§[uction struction ll Pacilitiag Egrtation
Alabama X* X

Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delawara
Florida
Georgia X
Hawaii

Idaho

Illinois

Indiana X X6
Iowa

Kansas
Kentucky
Louiaiana
Hainc
Haryland
Haaaachuaatta
Michigan
Hinnaaota
Hisaiaaippi
HiaaOuri X
Hontana
Nebraska
lavada

New Hampshira
Nov Jaraay
Ban Mexico
New York X X x x
North Carolina
North Dakota

Ohio

Oklahoma

Oragon X

3

XXX
t 1 a m
N x
U
N
U!
H

X

3':

xxx

3 §§232~"~"

X
X
N

XXX

3

APPENDIX C (Concl'd)

















Hosts Airport Hospitsi um? sts: Ind iii-hon -
Trast-ont Con- Con- Ronsvsl Bow-t Hsso Trsns-

Ststs Uo£§;___gtr igggtruction ll scilitios portstigg

Psnnsylvsnis x X X X

lhodo tum x x2 x 1

South Csrolino X

South Dakota 3*

tonnossoo X X

Toxss X X

Utah X. 0

Vermont X X X'

Virginis X.

usshinston X X

Host Virginis 9

Wisconsin X X. X X

"yo-in; X



l v Typicslly providos ono-hsli of local contribution
2 Owns oil or lost of tho sitpotts

3 Provides or hss providod sid in spocifisd instsncos
A Owns and operstss IOII of tho airports

S Savor only

6 local only

7 load issue

3 Only in cssos of provoo hsrdship

9 Linitsd spplicstion

* Sons or oil sid from svistion-relstsd tsxss snd rsVonuo

Sourco: Dots obtained iron sd-dnistoriog Fodorsl sgsncios.

mum LIA! omens I! HA3!!!

Scat. run It. Put u man In. Prof.8u£f
Cantor-MI Dept. of Pin. I 196! s :.
-Callf. I... X 1967 l
orid. x 1967 2
Illinois 3: 1965 3
Indiana X 1965 1
Kentucky x 1967 l

lacuna.- [967

thun x 1967 2
Mach-out x 1967 2
Michigan 1967y

Missouri 3 1967 I
luv Jam, 1967*

lea York I b
(Into 1 196 I.
Pennsyhauu 1963 3
South Dalton X 1963 1
I'm: t 1966 1
Heat 71:31:11; I 1962 2

* Authorized, but not ytt mle

APPENDIX E

Reports Published During 1967
State-Local Taxation and Industrial Location. April 1967. (Report A-30)

A Handbook for Interlocal Egroenents and Contracts. Xarch 1967 (Report "29)

gian5§_nnnual Renoir; January 1967 (eport W3k)



$368 State Legislative Pr ran_gi the Adviser! Coneission on Intergovernnentel
Relations; September 1967. (Report K-JS)

grossedings: Rational Conference on Legislative Leadership. October l3-16I
1957. Published in novenber 1967.

Reports Published in Previous Years

(Currently availables

Coordination of State and Federal Inheritance. EstateI end Gift Taxes.
January 1961. (teport A-l)

investment of Idle Cash Balances 131 State and Local Goverments. January l96l.

(Report A-3)

Investment of Idle Cash Balances bx State and Local Govern-enta-§A Supplement
to Report A-S.) January 1965.

Government StructureI OrganisationI and Planning in Hetronolitan Areas.
July 1961. (Report n~5>

§tate_end local Taxation of Privatel Owned Pr ert Located on Federal Areas.
July 1961. (Report L-SS

Intergovernmental Cooperation in Tax administration. June 1961 (Report A-7)







Periodic Congressional Reassessment of Federal Grantsin-Aid to State and
Legal Governments. June 1961 (Report A-a)

legal Eon ro rt Taxes and the Coordinatin hole of the State. September 1961.
Report A-9)



Alternative approaches to Ggyernnental Reorganisation in netrggglitan Areas.
June 1962. (Report All)

State Constitutional and Statutggz Restriction Upgn the Structural. Functional,
and Personnel Powers of Local Governments. October 1962. (Report A-lZ)

intergovernmental Responsibilities for "star Su nl and Sensoe Dis sel in
Wetrogolitan Areas. October 1962. (Report A-IB;

Eggpsferahilit! of Public Englgzee Retirement Credits 95225 Units of Governeen .

"arch 1963. (eport A46)



The Role of the States in Stre_ngtheny_xn the Proggrg Tax. June 1963. (Report
A-17 two values

Industrial Melmt Bond Financing. June 1963. (Report A-18)
The Role of Bulisation in Federal Grants. January 19. (Report 01-19)

Lama of Isderal Urban bevel t Pr rm on Local Government 01' iration
Mm. Jewery 1963. (feport A405

_s_tstuto_rz and Mninietrative Controls Associated with Federal Grants for
Publi_c Assistance. Hay 1966. Eeport A-21)

The Proble- of Special Districts in American Covenant. Nay 1964. (Report
A-22)

The Intergoverunental Armcts of Docmentag Taxes. September 1966. (Report
A-23

State-Federal Overlapping in Clearette Texea. Septcnber 1964. (Report A-Zb)

HetrgLoliten Social and Econmic niggerities lications for Inter overn-
nental Relations in Central Cities and Suburbs. January 196 Report A-ZS)

Relocation- Damon! entnent of Pennle and Businesses Displaced bz Govern-
ncnte. January 1965. (Report A-26)

Federal-State Coordination of Personal Income Texas. October 1963. (Report A27)

Buildi Codes: A Pr ran for Inter overnnentel Reform. Jenner! 1966.
(Report A465

Intermerueetsl Relations in the Povertz Bra. April 1966. (Report A-29)

Factors Affecting Voter Reactions to Governmental Reorganisation in Zhlitan
Areas. may 196 (Report 24-15)

Measures of State end Local Fiscal Ca ecit and tax Efforts. October 1962.
(Report 3-16)

The Advin emission on Intergovemental Relations. Hay 1. 1967. (A
Brochure. HU)



Performance of Urban functions: Local end Ixeavide. Septenber 1963. (Report III-21)

re: Overlapping in the United States. 1966. July 196. (leper! u-n)

fer Durham in the United States (A supplnent to Report 3-23). Selected
Tables Updated. December 1966.



State Technical Assistance to Local Debt Hannaeulen Januray 1965. (Report $26)

.5.

cungg as! Other Intuition 8m on Pollard and Scan Md 3 A
8.1qu Ithllggrgm. Hay 1966. (Report xiv-30$ (in. Jun. i967)
Hat: 11cm Imtca'. Ghana 0 to rod-ulna. Mun: 1966. (Report 11-31,

pa 11-h y Intergovomcau Pa anon. Submarine... Bonn Conic.
on Gwormntal Operation.)

mmnm Caucus of m: August 1966. (We W32)

-51-

Pmrty Program Uhithar enmity Action . .
loot-wad Co-micationa Batman Stata Oovarn-

nonta and tho Padaral Kxacutiva Branch . .
The I I I I I I I I I I I I I I C I

Iodcraiian At tha Crouroadr

11 Gianna in Co-iaaion Worship and Sta . . .

1!! lat: laporta and locondationa Adoptad I, ha
C-iuionbutinthahar.............

State-Local Taxation and Induatriai Location . . .

Piacal Balanca in tha hrican Fadaral Byam .
Baaic Structura of Fiscal Padaralian . .
Motropoiitan liacal Diaparitiu . . .
Aduiniatration oi Podaral Catagoricai Aida .
ma Stataa aa ltfactivc Partnara in tha Iadanl

I I I I I I I I I I I I I I I I I I I I

IV 115a Currant and Futura Hark Progra-

Drbaniutionandl'au c-unity Malena . . .

Davalopnant of Currant Intonation on Coupaition of
Increased Stata Ravanua Collection.

V Progrcaa in Inpla-antin; tha Recouandationa of tho
MICtnoaoooQOooooaaaoaa

lationalcovam-ant .............
Pad-rat Mutation In..qu . . .
Pcdaral kgialation Introducad . . .

st.t.mm.lammtaoaaoaaaao
Taxation and Yinanca . . . . o .
Structural and Functional Ralationahipa

Tuttmmttnm.a o o no a a o a a
Structural and iunctional Ralationahipa

VI Cd...tn o o a o o o o a a a a I o
htionai Confaranca on Legiaiativa Laadarahip .
Advica and Consultation: with Stan and Local

I I I I I I I I I I I I I I I I I I

In (Jo-iaaion Intornational Publication-

vi

21
21

23
26

25
27

88

31

31
32
32

37
39

62
2

b1
63

W! A:

W! I!

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me D:

ms:

Obligation. of ch. Advisory 00.100100 on
lntorgmmuul buttons for nal run
O I I I I O O 0 O O I O O I I O 0

Sun of Inter-non on Intoth lut-
Offlcu of local Affair.

sun Aid to localitch Supple-noun. the local
Contribution Undo: Solocud hdonl Grant

Program

fatal-Stat. Liaison Oful Ln Huhlnston .

Inportl Publlnhcd During 1967 . . . . .

'11

3

$3

'5:

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In 1967, tho Marian todorol oyoton woo on trial ao nmr botoro
in tho Nation'o hiotory with tho oolo oxcoption of tho Civil war. Tho nojor
crioio throatonina tho (annual oyota and, indaod, tho wolo fabric of
bottom oocioty, an in tho Iation'o citioo. tho crioio vao charactoriood
by oorima rioting, tho broahdoun of low and ordor. and in a nn-bor of aruo.
thc dioappoaronco of any loaning! non of wit, aon; tho rooidonto

ot blitod ooiahborhoodo.
mm mm: crzns ll Dunno

ilunrot v D do

During l967 anon of tho vorot racial dioturbancoo in tho lation'o
biotory broko out in nay citioo of tho canto-y: lovark, Dotroit. (hobo.
Hinnaapolio, Richita, lochootor, and m othor olaooo. largo and aoll.
acrooo tho may Micron ontbnnato of violaco. burning, ad looting.
nolatinnalcmrdaocallodontinauorofttouotnowoootho
rioting. and 'odoral tronpa worn out into Dotroit.

no iodiato mpnnoo lra m and nayoto, tho trooidat ad
Dont-nu, tho prooo ad tho plural poian naa ono of baildouat and out-
rago couplnd with aurtainty an to what could bo dona to rootoro oocial
hoolth to tho otrickon citioo. Contributing moot to thio uncortainty woo
tho fact that on elm link of cacao and ottoct moparont. a biotory o!
nogloctaddiorogardlnr thouoltaroolnioorityuoupa inloarkcon-
traotod vith Domit'o record of contiaod concorn vita, ad otoady iam-
nont in non rolationo our o poriod 0! annual roaro. Yot both anthrod
groatly tron tho riotoro and lootoro. In Congo thorn woo coocorn loot
accolorotod action on man for control city robnilding bo nonotrnod by
oao ao "rounding tho riot-to." lo .onoral, tho ottoct of tho rioto upon
both Indoral ad Itato lad-lotion an to auto- volcano am and to
tougbon "polico" Ioaomo.

ha tho otandpoint of £odorolia. a oigniiicant foaturo of tho
racial moot and civil dioordor vao tho tondoncy oi local otticiolo ad
nova India to opoak alnoot ontiroly in tom of roundial action by tho
rodorol Govoruoont. Ironically, tho baoic roaoono tor ouch of tho dio-
aatiotaction of linority m in tho citioo an and lo mud in local
Mt otxuoturo ad fiscal outtsincluding tho Wt. noon
at tho Mon-ho, Nor-financing of control city ochnolo. abalacod pat-
torna of Stato aid, and ropruoivo roatrictiono upon an abiniotration
of public voltaro. noon and othor mono or moot ota fr:- Stato con-
otitotiono and otatutoo and aro not turned; controllablo by Mral la
or actuation.




PAGE 1

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PAGE 2

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Gubenatri. ....c.er.

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PAGE 12

...........akovila For

PAGE 13

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PAGE 14

Industrial Developr.ent Bonds: A Growing Problee' During, the year industrial developotent bonds continued to be issued by local governe.ents throughout the country in incre-elsing nunibers. he use of these bonda began to beve e new efEoct as the year drew to a close-strong emipetition with the "legitiotate" issuances of State and local government for atrictly governpiental purposes. The tidt[ n;cuy stuaririn coc'bined with the increasing voluple of the industrial bond offerings were forcing up the interest races on both kinds of issues. It was also becogli:15 apparent that the industrial bond probleal was not confined to revenue bonds ns distirguished fremi general abligation bonds. In late Noveniber, Mississippi aarketed over $100 million of general abligation industrial bands. An increasing nuatber of State r.nd local offielels began to be nonvinced that strong action by the Congress was necessary if the whole edi.fiCc Of eqX ex001pt State and nimitri paI securi ties Wgs not to collapSe, sentialerit was increasing that Corigress should in some way curb the issuance of industrial develop:nent bands with tax exemption privileges. The great difficulty involved in framing such legislation was the fear that corning the tax exetipt status of this type of issue etight be considered in later years a precedent for curbing the tax exec'ption privileges of gneral purpose State and local governinent securitteli. FEDGAL PkOCim1S--U1-ICERTAIN"fY CONTROVERSY, AND PROCRESS Thc Nel i aru ['roblem aroudhout tite year increasing concern was empressed about the shortcoritiss of existing Federal-State welfare policies and progracts. Many contended r.har. public weIfare policies initiated in 19U had the effect of discouraging the transfer of individuals froin welfare rolls to e self-supporting status. This situation steins from the Eatt that 1aost outside earnings have been taken into account in deterplining how oluch aid the individual will be given, nnd outside earnings reduce the welfare entitlecient by .in equal ariount, here nlso was concern about the lack of intentive in existing welfare policies and progroeis for the recipient to underta.e adult education courses and work training that would qualify hici for a self-supporting jobi Thc House of Representatives endeavored, in reporttng out the Social Security Aalendnients for 1967, to remmedy scee oE these de[iciencies through campulsory attendance of scifore recipients at work trainin ; courses and by n.aking it possible for recipients to earn see riepey without a caliven.wrate reduction in the welfare ellorznent, Ubile n'ost people endorsed the objectives of the House bill, many felt it was too pu:litive in nature. Generally the Eouse version prevailed in the bill sent to the President a che first session of the 90th Congress drew to a clase.

PAGE 15

C ....................v...rret elar poicesan

PAGE 16

4Ga 5rto o oetmei emddurflta n iido oet ..l ....d p...h..ueo Rpesnatv

PAGE 17

..... ....r l

PAGE 18

Despte hisnewdieensin, anyStae..nd.....t....... lin .. .oi e ..... .rcie hthrl aife h oetrqieet

PAGE 19

In Marh 1967rerrisBryant Direc ......h. ........ergnc .....ng ..s .pone .y.eietJono oteComiso

PAGE 20

I. ...... .96 G..dy. --plmn himn fte ad ..intnes .r. c G..r... ...y.ry.dws p

PAGE 21

Scheduled to report for duty around January 1, 1968, as a Junior Analyat on the Canoission's staff, is Carl U. Stenberg, Ill. bb-, Stenberg has been serving as a graduate assistant at the State University of New York where he has completed work for his doctorate. -20

PAGE 22

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PAGE 23

re. G Col:an xeu .......r...o

PAGE 24

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PAGE 25

high~~~~~~~~~.. pr.......y ... ...iaigo efetrgtelcly dnnsee on buines peronalproprty ec .u .... di .........creicly t~e buinssEims rrfoeth cuisio rc nnde ht ttselmn

PAGE 26

.... ....ao o eto it oet i h is o erpl iran~~~~~~~~~~~~~ ....t s.....y.lsrte yte atta msrplia ra acout orf prcnto te opltin,70pecntoftaalea14se

PAGE 27

4. onres upor lgilaionprpoedbyth A-iia tratica ~ ~ ~ ~ ~ ~ ..........i.. P igegatapiainb tt

PAGE 28

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PAGE 29

.Y E ADIITAINO EALAToRALAD

PAGE 30

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PAGE 31

2. States provide for year-raund professional staffing of major State legislative connaittees. 3. State legislatures establish machinery for following Federal legislation and for presenting State Legis,lators' vieve at Congressional hearings.

PAGE 32

During ~ ~ ~ ~ d 1.1atto er tha eol. -nra1 nl viett

PAGE 33

.. ........ .... ...li.etii .h ......r....ion .. .... C .....i .ic t ... Ad ..or ....sio .... .otnig-ahrta eprr-

PAGE 34

lzl:""T

PAGE 35

Eedeyal Legislation Introduced Legislation introduced, but not ye t enacted, in the first session of the 90th Congress designed to iciplement recommendation of the Commission, include the following: 1. the emnibus Intergavernmental Coopreation Act of 1967--S. 698 (Muskie, et al.) and H.R. SS22 (Fountain) H.R. 5523 (Dwyer), ILL SS24 (Fascell), H.R. 5525 (Reuss), R.R. 5526 (Machen), and H.R. 5527 (Ulln-.an). The proposed legislation is an expended version of the predecessar legislation introduced in the 89th Congress (S. 561), (a) Title 11 provides for iniproved administration of grants-in-aid to the States (the initial title covers definitions). The entire title was endorsed by the Canoission at its nineteerith sleeting (January 18-19, 1965) and the specific provision for increased flexibility in connection with ''aingle State agency'' requirements in Federal grants-in-aid was recommended in Statutory__nd__diministrgive controls Associated with Federal Grants for htb__igAphs tance May 1964, (b) Title ill pemits Federal departments and agencies to provide specialized or technical services to State and local units of goveroment; Chia provision was endorsed by the Coolinission at its twelfth ateeting, December 13-14, 1962. (c) Title IV establishes a coordinated intergovernesental policy and iniproved ediainistration of grants for urban development; mioat of the title's provisions are based on recommuendations emanating from the Censnis:sion's report an m__pact _of Federal Urban Development Pres.rmes aidycgGoverainentgganingtfandFlanpig January L964, and its report on The Problem of Sp.e311,_1_Di__rictsinjmegean Covernmfg, May 1964, (d) Title V of S. 698, and all but one of the HousC companion measures provides for more systematic congressional review of future grants-in-sid to State and local governaients (Pygde _Congressional 1teessessment of Federal Grants-in-Aid to State and Local Governetents, June 1961).

PAGE 36

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PAGE 37

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PAGE 42

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PAGE 43

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PAGE 44

15. Coordination of State prograna af fecting water resources develop1r.ent and supply, 19662 wisconsin, 1967: Washington, Arizoria, South Car;oline and l.jontana. 16. Expends authority for joint exercise af powers, 1967: Kansas. 17, Crar.ting aur.hority to tunicipalities to exercise planning, zening, and subdivision control in fringe areas, 1967: Ncrth Dakota, 18. LiberaliEing AnneMatiCD Lavos 1967: Kansas. 19. Authorir.ation of study to consider the establishing of a division et building codes, 1967: Massachuse t ts. A st.ring cormittee consisting of representer.ives of several State EuildirigCode Agencies ut in Eadison, -.iaconsin, in t|avear.ber and agreed to torn. a ccaferer.ce of State efficials to study buildittg codes and standards, to exchange technical inferelation, and to facilitate appropriate Federalstate ceaperar.ion in this f teld. This repreECREE the initial conalderEtiCD by the States of prepo:.ls advanced by the Advisory Cocamission in its report on Building CodesA Pregram for Interanvernmental Refory,, wherein States were urged to take a niore setive role in clie foratulatten and enforcement of building codes. The Steering Cenotitter intends to call a national confrrence of appropriate state officiaLs eencarned with buildinG Code" and standseds to di-cur.: further the establishinent ci a pere:anent. nrganizatien c[ such afficials,

PAGE 45

Dear Mr. President: I have the herler en aubmit the Ninth Annual Repert of the Advisnry Comatission on Intergelvertimental Relaticas, pursuant to Public Law 86-380, which requires tbe aubiniasion of a report en or before Jrttuary 31 af each year. As provided in the statute, e copy of this report is also being transmitted to the Vice President and to the Speaker of the House of Representatives. Respectfuity submitted,

PAGE 46

ne omssinin194, ontnud et pl-esde gndt

PAGE 47

eedut t eme n lca lffir..1 -hsigte iaee of ~ ~ ~ ~ ~ dh L.1t fte ugtt r wt owthteAvsr CmI" so d ntroeneta eainad ihtepbi O nm etgop ereetn tt n lc1gvrneti

PAGE 48

encourage~ .t ..... ".r ...t..adoo rset bifgaae d ....io .E ..... oca .gemet .n otet ih pcfceap 1E Ithe. kid fprb .i ta ae en.rutdby, eIticue

PAGE 49

FE 1%7 FT 1968 Antumi Appropriated Parmennel enopensatLon 8316 5374 Parmannel benefits (ratirement, hamith, insurance, FICA) 22 26 Trawak and transporEation of persons a 32 Rent, utilities, and temmunications 6 7 Printing and reproductium 47 40 Other services 14 10 Services oE other agencies L5 13 Supplies, materials 3 6 Equipment -2 $433 $$10 Seurco of Fundse Congressional appropriations 1%7 $433 1968 $510 Grant and transfers from other Federsi agencies 197 $60 1%B --

PAGE 50

APPEN.y_ _A .UMR .F ........ NEITIGSAT FICSO ECLAFAR

PAGE 51

StM.LARY OF INF01HATICN ON EllSTIIE STATE OFFICES OF ECAL AFFAIllS (cont'd) State Tennessee California Pennsylvania Name of ASeney Ollice for local Intergovern'tl Dept.of Convwnity Government Council on Affaire Urban Crowth2 Year established 1963 1963 1966 Locatian Office of Comipt. Office of the Independent of Treasury Covernor Admin.Dept. Flinctioris Advisory, Coardinating and Technical Assistance Piscal advice X Nunleipal nanagement X Eng. A public uorks Mg.aspects of intraStBte gmit.relations Research, statistics & information collection E X Perserinei training X Boundary & fringe problems Assist Governor in coordinating state activities affecting local's 2 X Reconenend programs & legislation X Interlocal cooperarian n X Pirancial Assistance X Supervise Local Pinances Planning Functions Statevide planning local plannEng assistien Coordinate with regional planning Coordinate UE th 5 to te -stde planninri X Program Responsibility lleban reneoal & redevelopment PoVet"tV

PAGE 52

SUMMARY OF INF011MATI014 DR EXISTING STATE OFPICES OF ECAL AFFAIRS (cant'd) State Colorado IIIinois New Jersey Washington Namie of Agency Division Office of Dept, of Planning & of local Ireal Comunity Connunity Covernment Government Affaira Affairs Agcy, Year est.blished 1966 1966 1966 1967 1.ocation Executive Office of Deptin the Office of the Departnient Governor Execu.Br. Gevernor functions AdvisoryCoordinating & Technical Assistance Fiscal advice 1 Municipal management x Eng. & public worka X K leg.aspects of intrastate gavt.relations X X Researchstatistica & info.Callection X X X Personnel training X X Boundary & fringe problems x Assist Governor in coordinating State activities affecting local's X X X X Recocumend programs and legislation X X X X Interlacal cooperation X X X Financial Assistance K X3 Supervise Eccal Firiances 1 Planning 1."unctions Statewide planning X X Local planning assist'ce K X Coordinare with regional planning X Coordinate with a ta tevide planning X X Program Respons ibility Urban renewal & redeve iopment X 4 P-averty x 4 Rousing X 4 Area redevelopment X 4 Statutory citations S.B.43 H.H.2194 Assembly H.B,7B, 1967 1966 1965 Bill 661 (Approp. 1966

PAGE 53

SGGIARY OF INPDIMATION ON EXISTING STATE OFFICES OF ECAL AFFATRS (cont'd) Sta te Missouri Shio 5'inconsin Naule af Agency Dept.of Ilepartnient Dept.of Local Comiunigy of TJrban Affaire and Affairs Affairs I]evelopment Year established 1967 1967 1967 Location Independent Independent Independent admin.Dept. Admiin.Dept. Ezec.lk-pt. Functions Advisory, Coordinacing & Technical Assistance Fiscal advice X Municipal managenwet X Eng.& public uorks X Leg.nepects of intrastacn govt.relations K M Research, statistics 6 info.collection K X X Personnel training K Boundary & fringe prob lems Assist Covernor in coordlnating State activie ii-s affecting local S X X Recon.nend prograne and legislatiuri X Interlocal cooperation X X H Financial Assistance Supervisor Incal Finances Planning Functions Statewide planning X 6 Local planning assis'ce X Coordinate with reglanal planning X X Coordinate with StateMide pl3nnin Program Responsibility Urban reneval 6 redevelapnent X Pnuorty X X Rousing 6 Area redevelopment X statutory Citations 2.3. 129 Subecitute E.B. 135, 1967 1967 E.B.495, 1967

PAGE 54

Slat-IARY OF 116OlofATION ON ExlSTING STATE OFFICES OF iaCAL AFFAI RS (cont 'd) State Connecticut Minnesota Vermont Name of Agency Dept. of Office of local Office of Local Ca:mmunity & Urban Affaire Affairs' Affairs Year es tab Lished l967 1967 1967 eeation Independent Office in State Office of the Admin.Dept. Planning Agency Governor Functions AdvisoryCoordinatLng & Technical Assistance Fiscal advice X Municipal management x X 1 Eng.6 public works K X lag.aspects of intrastate govt-relations Researchstatistics & info.collection H X X Personne l training Boundary & fringe probleais Assist Covernor in coordinating State activities affecting local's X X X Reconnaand programs and legislation x X Interlocal cootieratlan Pinancial Assistance x2 Supervise Local Finances Planning Functione State.wide planning X X Local planning assistice X X Coordinate with regional planning X X X Coordinate with Statewide planning X X Program Rasponsibility Urban reneval & redevelopment X Pnverty I Housing X X Aren redevelopment Statutory Citations F.A.522 Sees.4.11,4.12, Executive Auth.

PAGE 55

... .....s .oamnsrto fteRua eeeonetF

PAGE 56

.o~ii o .embe. .p .............., ...... .et r o r n m t ...............v B l n e ......., ......, .....2

PAGE 57

-Jaste Airport lipspital reatment Con-Con'.'orks struccian .tr||ction M* X X2 X X X X X4 X X X X KE x* x X X X X, N X X4 X* X X X* Urban Umter and Urban Renegal Sauer >[ase Transl/ Facilities portation XI X X

PAGE 58

Nasce Airport 11capital Urban Darer and Urban Treatment ConConReneual Sewer Hans TranaState irorks str11ctiott structiori l/ Pacilf.ties parratian Peni-sylvaria x ( X X X Wwde Inland X 9 X X Gouth Caro!ina X Se .th Dakota X* Terressee X X 1-e;.x x X Utah X* Ver-innt X Virginia X* Mashinp;tan X X Mest Virginia 1.Ftstonsin x X* K X 1:rycming X 1 Typically pravides one-half of local contributtan 2 -otos al] or most of the airporte 3 e Provides or has provided aid in specified instances 4 -Owns and operates sonie of the airports 5 -Sewer only 6 -Mans only 7 = Bured issue 3 = Only in cases nE proven hardship 9 -Limited applicar.iun -Some or all aid frori aviatian-related taxes and revenue

PAGE 59

EDERAL-STATE LIA150N OFTICES IN i-IASHINCTCN Full Tire Part Tf-e 'ihen Est, f. af Fin, X 961 X 1967 1967 X 1965 X 1965 X 1967 1957* X 1967 X 1967 1967* K 19&7 1967* X X 1966 X 1963 X 1965 X 1966 X 1962 but no t yet es tablishe d

PAGE 60

--~~. ..... ..._ __.._ Eghth~~~~~~~~~~~ Inuli~ot e:s % -eot'-4

PAGE 61

TheRoe f heSttu i Sren~tenngth Port.T. J.. ... .. 3 (..p..

PAGE 62

Catlop an oherInfreionSouce onFedralan Stte ddPr1966 ; Selec-d Bbligah. |n 96 1 otM3)(e.Jn 97

PAGE 63

.oet .rgrm .kte C .mnt ........1 ments ~ ~ ~ ~ ~ ..n .h eea xeuieBac ......L4 T e H le l ..............., .,. L FedveismAttheCrssrad ... .., ........1. 11 (angs inCamissin Mmberhipand ta. .........8 .ois o .uin .h .Y. ................2 .ai .tutr .. .faa ..tais ........2 Sytm.......... ............23 Inceasd sateRavnueColectons ... ......413

PAGE 64

-00 .............91 9.9 I96 ..1. ... ..,. .. .. .. ....4

PAGE 65

I.SGE EEHLG~f I IflRCRE-ldTLRM1i$I %