American Federalism:

Toward a More Effective Partnership

American Toward Federalism: a More Effective Partnership

A Report of, and Papers From The National Conference of American Federalism in Action Washington, D.C. February 20-22, 1975

The Advisory Commission on Intergovernmental Relations Washington, D.C. 20575

ref ace Acknowledgements iii

In early 1975, the Advisory Commis- ACIR is grateful to all those who sion on Intergovernmental Relations participated in the program of the held its first national conference on National Conference on American American federalism. Although the Federalism in Action by preparing bicentennial has attracted public papers or by serving as session chair- attention to the historical aspects of men and speakers or discussants or federalism, our primary concern was by being active, thoughtful, vocal to the system as it is operating at delegates. ACIR also extends special this crucial point in history when the thanks to the public interest group sometimes overpowering problems of representatives and others who the economy, environment, and served on the conference planning energy affect all levels of committee. We are indebted to the government. National Science Foundation for Our conference did not come up with funding certain conference ex- easy solutions or provide any final penditures. conclusions. But conference speakers William R. MacDougall, former and delegates did identify a set of executive director of ACIR. and central challenges, provided a forum Jo Anne limenez, his administrative for discussion of the major problems assistant, carried the primary respon- and proposed some important sibility for organizing the confer- alternatives for action. ence. The manv, exvressions. from This volume is intended to share the participants saying that the confer- conference findings and discussions ence was an outstanding success are with those interested in the workings tributes to their efforts. F. John and future of American federalism. Shannon, David B. Walker, and Lawrence D. Gilson, of the ACIR staff, also played major roles in Robert E. Merriam planning the conference program. Chairman Furthermore every member of the ACIR staff had assignments prior to and during the conference itself. This volume was edited by Carol S. Weissert, who also wrote the over- view. The manuscript was typed by Marinda T. Davis; Franklin A. Steinko was responsible for the printing of the report. Lawrence D. Gilson, director of policy implemen- tation, supervised preparation of this report.

Wayne F. Anderson Executive Director

Table of Contents

Section One. Conference Overview

Section Two. Papers American Federalism: A Paradox of Promise and Performance by Robert E. Merriam 2 1 Functions in Flux by Alan K. Campbell 33 State Modernization Today by Daniel 1. Evans 4 0 Local Government Modernization by Richard G. Lugar 4 4 County Modernization in the U.S. by Conrad M. Fowler 5 0 Revenue Sharing: Renewal Time Approaches by Edmund S. Muskie 5 4 The New Mix of Federal Assistance: Categorical Grants, Block Grants, and General Revenue Sharing by Elmer B. Staats 5 7 Federal Assistance: Its Current Impact and Future Development by Daniel J. Elazar 6 4 Coming Issues in Public Control Versus Property Rights by Ralph R. Widner 68 We Took Our Eye Off the Ball by Harlan Cleveland 80 The Future of Federalism by Daniel P. Moynihan 86

Section Three. The Program 103

Section Four. Conference Participants 107 Section Five. The Advisory Commission on Intergovernmental Relations Description 118 Present Commission Members 119 Former Commission Members 12 0 Staff 122 Section One An Overview

Federalism is a process without Evidence from the conference indi- required form or practice - a process cates that the federal system is stand- constantly in flux and under ing up to the current challenge. evolution. Reformed structure and function of Richard Leach, American Federalism, governments are evident in the grow- 1970. ing capability of regional instrumen- talities and cooperative arrangements The purpose of this volume is not to among governments to avoid over- define federalism or discuss its long lapping and assure more effective history or ~redictits coming glory or service to constituents. Governments demise. These have been done in at subnational levels are assuming some detail by others. It is our pur- more responsibility in providing for pose to look at federalism as it works individual needs of their cities and today - at a time when it is faced have compiled an impressive record with the convergence of several of innovative, responsible legisla- massive problems, resulting from a tion, and related decisions. And the depressed economy, constricted fiscal system, although under the energy supply, and finite environ- massive strain of an uneasy national ment. These problems confront all economy, is in a period when the levels, involve all facets of federalism, present mix of Federal aid, including and cannot be solved by actions of general revenue sharing and block any one government acting alone. grants, is helping state and local governments weather the economic In light of the magnitude of these storm. And although cooperation problems and with the realization among governmental levels is still far that there are no easy answers, the from ideal, recent experience has Advisory Commission on Inter- evidenced increased awareness of the governmental Relations convened its need for and more experimentation Frank Bane, former chairman of ACIR and first National Conference on Ameri- toward achieving a more effective former executive director of the Council of can Federalism in Action. The con- Federal-state-local partnership. State Governments. ference speakers and delegates iden- tified a central set of challenges and Frank Bane, first chairman of the provided a forum for discussion of Advisory Commission on Inter- the problems facing the federal sys- governmental Relations and former tem. They looked at the present and executive director of the Council of the past and suggested options for State Governments, describes it from the future. The result was some another angle: "With a federal sys- answers, many alternatives - and a tem we have diversity, without realistic look at federalism in action. diversity, there is no choice, without choice, there is no freedom." He con- tinued, "the great glory of the federal For as Professor Leach and others system is some damn fool at the top have stated, the federal system is one can't ruin it." constantly in flux and under evolu- tion. The history of the system is This section of the report is an marked with decades when decen- attempt to capture the thinking of tralization was highlighted and those that meeting as it evolved over the when centralization was the primary three days. Following this overview tendency; times when states were are texts of I1 speeches given during considered the ineffective partners the meeting, reprinted in their en- and years when localities were cir- tirety due to their particularly broad cumvented whenever possible. Yet application. with today's global and nationwide challenges, the nation can no longer afford to have any one of the part- ners weak - and none can solve the problems alone. may be on the brink The Promise and Performance the United States was less autocratic, of an era of creative innova- of Federalism and granted more freedom of expres- tion paralleled only by the Laying the groundwork for the con- sion, of the press in particular, than Progressive era earlier in this ference, ACIR Chairman Robert E. any other great nation, and certainly Merriam suggested a series of tests his own France; that this nation had the economic wealth to accommodate to be used in evaluating the per- a highly pluralistic society of free century.99 formance of the federal system. choice for individuals and various While providing his own tentative subcultures; that its federal govern- conclusions, Mr. Merriam chal- ment structure was flexible enough lenged the conference participants to to accommodate dynamic new social test the system against their own forces and sound enough to guaran- experience and perceptions. The tee sufficient stability in the process tests, with the essence of Mr. of rapid change. Mr. Merriam says Merriam's comments, follow. that even though political parties Does Federalism Protect and may not be adequately fulfilling their Encourage Democracy and Freedom? consensus forming responsibilities, he believes democracy and freedom Encouraged by the recent election of have been fostered by federalism, those people in our society too often particularly "where levels of educa- left out of the electoral process, Mr. tion and of citizen sophistication are Merriam's answer is yes. For, al- high enough and in a time when though the number of persons such institutions as legalized segre- voting in 1974 was the lowest in the gation and rotten borough appor- last 20 years, those who did vote tionment have been swept aside." "registered some remarkable deci- sions in opening up the system by Does Federalism Result in electing representatives of groups Government Innovation? historically underrepresented in our system." Blacks, women, and The answer is a clear cut yes, accord- Hispanics were elected to high offices ing to Mr. Merriam, who feels that at the national, state, and local levels, we "mav be on the brink of an era and advocates of consumerism, of creative innovation paralleled only strong environmentalists, and open by the Progressive era earlier in this government proponents were elected century." There is reason to believe, from coast to coast. The sheer num- he said, "that the creative juices sym- ber of positions available and the bolized by the New Deal and the opportunity to progress to more New Society eras have been sapped responsible positions at higher levels on the Federal level, that tight Federal are strong features of the American budgets will make it less practicable federal system. to institute sweeping new national programs, and that the states may be, In addition, access to voting and as was so proudly claimed in the citizen participation for both sexes Progressive era, the laboratories of and all races have been opened up, social change in America." The states not only through so-called sunshine and their local -aovernments are far laws, but also through an increased more sophisticated than they have awareness by both citizens and of- ever been before, he said. The state ficials of the importance of the legislatures, in particular, are filled citizens' role in the decision making with more urban, better educated. process. more imaginative people than at any earlier point in this century. "Who, then, is to say that the Ameri- can system is ossified, closed, un- Citizen groups such as Common responsive?" Mr. Merriam asked. Cause have had a remarkable impact He answers the question with the also, he said, in the passage of broad observation of a French scholar, Jean-Francois Revel, who said that An Overview

campaign spending and ethics legis- eralism is achieving equity for all lation in the states. Although they citizens at the same time that allow- will lose as many battles as they will ance is made for diversity within the win, he feels they will provide a system." In all fairness, he says, fed- "remarkable panoply of thrusts for eralism has worked both to foster innovative state action." Such action equity in some cases and hinder it in will range from land use control and others. Too often in the past, states consumer legislation to court reform and localities were guilty of the latter and a challenge to industry oriented - especially in areas of racial and regulatory agencies and will likely ethnic discrimination. The reappor- spread quickly to other states, since tionment decisions and the civil he said, "for all the proclaimed diver- rights acts of the 1960s were re- sity of our system, we are more one sponses to equity problems made at nation than we think." the national level. Assuring a certain floor of economic security is another Is the Federal System Efficient? area of national action to increase "Based on American experience up to equity. "Yet one could say, with now, we federalists have every reason substantial evidence. that the assur- to be rather humble," Mr. Merriam ance of civil and economic eauitv>, said. "Our consensus method of does not depend on a federal sys- reaching decisions is laborious and tem," Mr. Merriam said. But fed- time consuming. The capacity to eralism does have some distinct plan well for the future, and then act advantages, particularly in pro- in accordance with plans, is one of tecting the rights of minorities, our weakest points." So it is some- especially those minorities that are times asked, can we really afford fed- enfranchised and politically articulate eralism? With the thousands of fre- - not those who are politically im- quently overlapping government potent and have suffered under units reaching from neighborhoods ancient injustices and who cannot to the state, there is often duplica- enjoy the benefits of legislative slow- tion of administrative machinery if down and must rely on the courts. not provision of service. The op- The Warren Court made massive posite question, of course, is whether strides in assuring the rights of the autocratic systems capable of swift dispossessed of America. Yet in decision are more efficient, or, in the recent years state supreme courts long run, more economical. A single have made important moves in this administrative mistake in a large area particularly in the equalization autocracy can be disastrous. Mr. of school funding and related prop- Merriam argues, as do others who erty tax reforms. Still, Mr. Merriam follow later on in the program, that says, American federalism has done the very fact that there are so many a good job in protecting and foster- governments "relates to what one ing equity for its citizens - and might call the silent but real promise we can be better satisfied with this of American federalism - not only record now than we could have been the guarantee of freedom and popu- a generation ago. We would hope lar government but also the promise that in the future, he continued, less of unleashing human energy reliance will be placed on judicial through decentralization by freeing "mandating" to fulfill what are a nation of a highly centralized really legislative responsibilities. national administration. Local initia- tive has been, and remains, one of our most enduring strengths." Does Federalism Promote Equity in the Treatment of AI~Citizens? Mr. Merriam says "one of the thorniest problems of American fed- Does Federalism Contribute to the may get lost, for today's large inter- Improvement of the Quality of Life . ests. are many times larger and more for All Citizens? powerful than governments. The problem is compounded with the Although the definition of quality of complex, global scale problems now life is far from settled, it would prob- facing this country, ranging from ably include such components as un- quadrupled international oil prices to defiled natural environment, clear air worldwide food shortages and infla- and water, health, accessible public tion - problems that defy solution at transportation, cultural opportuni- the local level. The situation leads to ties, and maximum opportunity for a further auestion that Mr. Merriam individual expression. Yet each tech- calls the penultimate one: "Can our nological and social "advance" seems country conceivably deal effectively to bring its own ~roblems.Does fed- with these problems without a degree eralism have anything to say to this of centralized authoritv that will cut problem? Mr. Merriam suggests that deeply into the warp and woof of our it does. "Too often, the effort has delicate federal system?" been made to suggest national quality of life standards for this In his opinion the country - and huge, multifaceted nation - a macro- federalism - can and will survive. level effort doomed to failure because It will survive with a strong and effi- it fails to take into account that we cient national government, what he live at the local, the microlevel." The calls the bulwark of the system, but very nature of federalism allows - also with the diffused vower and even encourages - citizen participa- responsibility resting primarily on tion in decisions concerning their the states, the cities, and the people well being, and such decisions right- themselves. It is this final power Mr. fully should be made there, he said. Merriam calls "the salvation of the "We should not entrust the national federal system." But only if the im- government with broad power to portance of both is recognized, he

decide, beyond certain minimum eco- said, paraphasing. - Chief Justice nomic and environmental standards, Chase, can the states remain as in- the priorities to enhance the quality destructible as the Union itself. "And of life of Americans living in 50 only if this is so can federalism grow quite different states in 267 metro- and flourish into our third century." politan areas and 3,100 counties With that, Mr. Merriam challenged spread from sea to sea," he said. the speakers and participants at the conference with the same question. Is the Federal System Strong and Their answers comprise the re- Resilient Enough to Meet mainder of this overview. the Major Challenges of the Present and Future? Concerns Expressed in In our highly sophisticated and com- Small Group Discussion plex society, citizens and govern- With this challenge in mind, dele- ments alike must cope with incredi- gates set about their first task: to bly large enterprises - big govern- discuss in small group sessions the ment, big business, big unions, each major American intergovernmental stoutly defending its perceived self- problems and possible solutions as interest against the lonely individual. they viewed them. Yet it is not only the individual who The results of these small group discussions, as compiled and re- ported by William G. Colman, former executive director of ACIR, dealt with both theoretical and practical An Overview

concerns. There were many questions another cause of concern. There was concerning the effectiveness of fed- a definite need voiced by conference eralism. Among concerns expressed participants for a regional process were: in urban areas so, as one delegate Confusion about the roles and expressed it, "local actions necessary responsibilities, both fiscally on a metropolitan scale (such as land and functionally, of each gov- use, capital expenditures, pollution ernmental level and between control, etc.) can be considered in an public and private sectors. open, rational way." Along this line, Mr. Colman Effectiveness of Federalism continued, there seemed to be no censensus or machinery to One of the basic questions raised by deal with functional priorities Mr. Merriam and the small groups and a disenchantment with the dealt with the effectiveness of fed- "overly marbled" marble cake. eralism: Are there too many govern- Apparent disparities between ments causing too much confusion fiscal capacities and service and with too little coordination? Is needs partly due to interlocal there too little governing? differences, partly to Federal/ Too Many Governments; state-local differences. Too Little Governing? A need for sensitivity of higher William G. Colmnn, former erecutbe director levels of government toward Although Indianapolis Mayor of ACIR. Richard Lugar thinks that coopera- lower levels and more input from lower levels to the higher tion among local governmental juris- levels. Of special concern to dictions is a necessary and good thing, he does express concern at the participants in this area were tremendous growth and expansion of special interest viewpoints that regional bodies and special districts. each level develops; inflexibility Stimulated by Federal guidelines and of Federal regulations; manda- requirements, he said the latter often tory responsibilities on lower result in quasi-official units whose levels without adequate consid- officials are not elected but exercise eration of impacts and re- considerable authority over a variety sources; and reluctance to re- of service areas and programs. Thus, cognize the reality of the urban Mayor Lugar continues, "the munici- county. pal official who is elected must now Continued proliferation of confront not only the Federal guide- categorical grants. lines and officials, the state govern- Weak and ineffectual local mental apparatus, the elected county governments. and township officials, but also non- Lack of accountability and elected regional officials who com- credibility at all governmental prise a growing tier of government levels. Of special concern in this spawned by Federal legislation and area was the need to encour- state attempts to comply with age more citizen participation. guidelines.'J Other specific issues of con- In addition, Mayor Lugar said, the cern dealt with lack of a nation- push for such additional govern- al development policy, need for ments often impedes the "much more new measures to combat reces- vital steps of local merger and con- sion, collective bargaining, lack solidation and serves to freeze the of effective intergovernmental old boundaries into place." control of crime, the Federal regional structure, and ineffec- tive legislative oversight at the Federal and state levels. Regionalism, a subject covered in depth later at the conference, was Governor Daniel Evans of Washing- viding the advantages of both cen- ton agrees with Mayor Lugar's fears tralization and decentralization. One concerning the growing role of non- tier would be a metropolitan area elected units. He thinks there is a government to provide planning, role for regional planning, but he policy making, and operations for fears the fact that the non-elected those functions requiring a geo- body is "one step removed from the graphically comprehensive ap- direct relationship of people to their proach; the second tier would pro- elected representatives." He worries vide decentralization to give the about moving away from direct community the responsibility for any accountability for public actions. functions and activities which can be Other speakers had various solutions handled at a lower level. Anthony to the problem of too many govern- Astrachan. free lance writer on ments and the coordination problems Canada and America, described the they pose. These diverse solutions, two tier system as it operates in often broadly categorized under the Toronto. Howard Hallman, presi- term "regionalism," provide insight dent, Center for Governmental into the variety of mechanisms now Studies, Washington, D.C. discussed in use across the country. the importance of neighborhood gov- ernments in the two tier system. Judge Conrad Fowler, probate judge Mr. Fosler, in presenting the recom- in Shelby County, Alabama, also mendations of the Committee for supports the concept of general all- Economic Development for a two tier purpose government but points out system, said such a model "eschewed that the alternative to multifunctional the notion that traditionally defined regional councils is the even more Dr. Janos Homath, professor of economics, functions of governments could be Butler University, Indianapolis, Indiana. unattractive special district. He says, "we must reject the notion that a neatly assigned to one or another of maze of special purpose regional these two levels, but rather recog- mechanisms is an effective, respon- nized the need to distribute func- sive or responsible approach to tional responsibility according to handling the mounting planning, specific area needs and to promote financial, and service problems fac- the sharing of power between each ing practically all of our urban and level in the planning and execution rural substate regions." of functions." He warned that metro government is Judge Fowler believes that county not an end in itself and that there are government should be modernized at least two ways in addition to and strengthened through state con- metropolitan reorganization to sti tu tional changes and general legis- achieve some of the same objectives: lation providing for charter adoption to improve legal, financial, and ad- or for optional forms of government. ministrative arrangements among Such modifications generally result jurisdictions as they now exist and in granting legislative power to the to improve the management and county governing body and lead to productivity of existing govern- a change in structure so that one ments. official emerges as the chief executive or chief administrative officer and a Cooperation is the key to the success legislative body is assigned the policy of the two tier approach in Toronto, making role. according to Anthony Astrachan. "The two tier system means that Edward Regan, county executive of burdens like welfare and police are Erie County, New York, and Scott shouldered by the whole of Metro Fosler, director of governmental instead of crippling any one compo- studies for the Committee for Eco- nent," he said. It has also saved the nomic Development, proposed dif- central city, he said, "by ensuring fering "two tier" approaches as pro- that if the mobile middle class moved to the suburbs, it would not be leav- An Overview

ing the core to rot." For the middle ing services to citizens. Consolidation 66 If the Federal government class continues to pay for the core increases responsiveness in the area does not encoura e the two tier through property taxes, (each of racial equality, he said. "There solution, it shoul! at least not borough or city adds its own mill were no black office holders before rate to the Metro mill rate). the consolidation, even though the county was 21 percent black," he Edward Regan, of Erie County, New said. "Now blacks are guaranteed York, called the two tier government seats and have one at-large seat too," the "logical" approach, yet he said he said. He feels the consolidation "often grant programs and Federal has also aided the government in its funds are not supportive of the two ability to set priorities. In addition, tier concept. If the Federal govern- the new government in Jacksonville ment does not encourage the two tier is making a special effort to provide solution, it should at least not thwart responsiveness with neighborhood it." Mr. Regan was particularly sup- outreach programs, extensive use of portive of the urban county serving advisory boards and public hearing, as the second (or metropolitanwide) he said. tier. Howard Hallman, president of the Indianapolis Mayor Lugar said city- Center for Governmental Studies, county consolidation has been val- Washington, D.C., thinks that uable to that city because it led to an unitary metropolitan government extraordinary surge in new building, may be quite workable and desirable new outside investment capital, a sharp rise in per capita earnings, and in small metropolitan areas but that a sharp decrease in the number of multilayer governments will be the citizens with incomes below the pattern in larger metropolitan areas. poverty level. Big league sports, "And properly so," he said, "for this much more entertainment, new enables government to be organized hotels, the building of the convention in a manner in which scale of opera- center desired for decades, and tions varies with the service rejuvenation of inner city retail sales rendered." in addition to suburban retail pros- This multilayer government would perity all occurred in a five year span vary from two to possibly even four following the establishment of Uni-Gov in 1969, he said. tiers in the largestu areas and would include neighborhood governments Francis Francois, chairman of the to act along with metropolitan and Prince George's County, Maryland, city governments in serving the Council and former president of the needs of the citizens, he said. Each National Association of Regional layer would perform specific activi- Councils, and John Boland, chairman ties and would share power. Mr. of the Minneapolis-St. Paul Metro- Hallman feels that neighborhood politan Council, discussed the use of government is "better able to counter regional councils to provide consoli- forces that sometimes have a negative dated and coordinated functions. impact upon neighborhood condi- tions such as unresponsive elected Regional councils provide a means of officials, lethargic and unproductive delivering services to local govern- bureaucracies, selfseeking municipal ments and of attacking regional unions, and private businesses which problems, Mr. Francois said. Yet are more concerned with profits than several things must be assured if neighborhood life." regional" c~~ncilsare to succeed in Lex Hester, chief administrative of- the long run: that the organizational ficial for Jacksonville-Duval County, structure of the regional council be Florida, feels that the city-county improved to make certain that policy consolidation now in operation in his is set by local elected officials, not city is an effective means of provid- 66 Many people in Cali- staff; that clear legal standing be government there. Our finding was fornia think they have said given to regional councils; that local that the numbers mean nothing." something significant when governments be strengthened by "His" finding was that of the Gov- they state that there are 5,800 making them more capable of iden- ernor's 1974 Task Force on Local "f Y'W problems and delivering units of government there. Our Government Reform which he answers; and that public support for chaired. The finding also stated that finding was that the numbers the concept of voluntary regionalism mean nothing. be improved. the existence of numerous special districts did not create serious prob- John Boland provided a case study lems for the delivery of economical with the metropolitan council he - and high quality public services. heads. Set up by the Minnesota In fact, Dr. Hawkins indicated the legislature in 1967, the council has a results were often the opposite. The mandatory membership from local task force concluded that, especially governments and a permanent non- in urbanized areas, the formation of voluntary funding base. The body special districts is, in large part, a has the responsibility for overall response to citizen demand for de- comprehensive planning, and it has centralized government that can be review powers over the metropolitan easily controlled and that will tailor operating agencies. The council pro- services to their needs. In addition, vides physical and social planning, he quoted a survey conducted for the including regional plans and guide- U.S. Senate Committee on Govern- lines for health, criminal justice, ment Operations, which found that housing, and aging. It is now com- citizen satisfaction with government pleting a study on land use which, if increases as the size of governmental passed by the state's legislature, unit decreases. would require mandatory compre- hensive plans for all units of govern- Too Much Role Confusion? ment in the metropolitan area, which Closely related to this question of will in turn be subject to review and jurisdictional fragmentation, of approval by the Metropolitan course, are a pair of practical ques- Council. tions: what roles and actual func- In all the previous examples, state tions are performed by the various participation and support are essen- governmental units within our 50 tial to success. From passing legisla- state-local systems, and does the tion to authorize city-county consoli- present servicing assignment pattern dation to determining boundaries and make sense? strengthening financial and admin- Alan Campbell, dean of the Maxwell istrative contributions to the local School at Syracuse University, intro- government system, the state role is duced discussion of functional as- an essential ingredient. As Mayor signments- with the historical ob- Lugar succinctly expressed the rela- servation that "ever since man began tionship: "The local reformer must designing governmental systems, or be an ally with the state government thinking about such systems, he has reformer." been troubled by the question of what part of the system should do Yet there are those who do not be- what." The reason, says Dean lieve there are "too many gov- Camvbell, is that there is no inter- ernments." nal~; consistent theory which can be Robert B. Hawkins, visiting research used to guide the placement of func- fellow at the Hoover Institute at tions or to design a system in which Stanford University, is one. "Many to place the activities of government. people in California think they have What theory there is comes primarily said something significant when they from political science and economics state that there are 5,800 units of and a bit from public administration, sociology, and psychology. But, Dean Campbell concludes, these theories An Overview

provide little guidance to proper offered an example in the area of 66 Ever since man began de- structuring of government systems transportation when he argued that signing governmental systems, or assignment- of functions. The the cities should have more choice in or thinkina about such SVS- absence of a perfectly coherent sys- determining the use of transportation he his been troubl& by tem requires the setting of goals one funds. Some localities needed mass the question of what part of hopes to accomplish by reordering transit money at a time when all that the system should do functions. For Dean Campbell, the was available was money for high- guiding principle is "equity," and ways, he said. At long last, there is what. H he feels it is possible to design a an urban transit program, he said, // system which will maximize equity that lets us improve and expand our while not ignoring the claims of transit services with Federal help* other criteria. rather than continuing to build addi- tional facilities where they really Dean Campbell's conclusion is that aren't needed. there are criteria and guidelines- but no perfect functional assignments Another example of intervention for various levels of government. from the Federal government, given Dr. Hawkins agrees in part. "We by County Executive Regan, was must give up the notion that there that of San Diego where the county is some ideal arrangement of func- with its broader tax base performed tion by level of government," he social services and welfare functions said. "Rather. functions should be instead of the city. However, the analyzed according to a set of criteria recently passed Federal Housing and that indicates where scale economics Community Development Act of are to be realized, where common re- 1974 provides funds to the central source ~roblemsand externalities city, so the City of San Diego is will occur, and what functions "busy once again hiring social citizens desire to control at the local workers for a duplication of services level." provided by the county. This is an "Some overlapping will always be example of the Federal government necessary," said Robert Merriam. marching backwards," Mr. Regan But he posed a question, "yet must said. duplication be as excessive as now? Mayor Lugar argued that the Federal What rationality is then left in the government often does things to hurt federal system and how can citizens localities. The mayor cited recent possibly know which level they Federal legislation that he calls should hold accountable for success "ruinous," especially the bill that or failure in any given policy area?" included state and local government employees in the 1974 National Fair Federal Involvement: Too Much Labor Standards Act Amendments or Too Little? despite testimony that fire and police In addition to concern about struc- protection would be prohibitively ex- ture and numbers of governments, pensive and that severe cutbacks in there was much discussion at the service would result. Ironically, conference of the need for coopera- Congress exempted its own em- tive efforts and understanding of ployees from the act. each government's role and place in "The pleasures of legislating must be federalism. Both practitioners and balanced by the pains of taking time academicians agreed that there to understand enormous and expen- needed to be more coordination sive implications and paying the among governments. costs created," he said. Large cities, State and local speakers complained particularly about the Federal gov- ernment and its apparent lack of concern for the impact of Federal actions on the other governments. Mayor John H. Poelker of St. Louis A rowing proportion of such as New York, become ungov- Community Development Act of the vubP ic business is going to ernable principally because their 1974, the Comprehensive Employ- leakaout of the nationd level "own citizens and their elected offi- ment and Training Act of 1973, and of government-some of it cials are precluded from taking the the Comprehensive Health Planning into international institutions necessary remedial measures by Fed- and Public Health Service Amend- eral and state mandates which may ments of 1966. -and a great deal of it into require action that is counter- regional; state, and municipal productive." Concerns in Carrying Out Roles government. Governor Evans would like to see the Another issue that must be faced in Federal government reduce the num- dealing with functions and structures ber of categorical grants and allow of governments is the method used states and localities more flexibility to carry out the functional roles. in spending the funds. The expense Major concerns dealt with at the and trouble involved with categorical conference were equity, citizen in- grants are among the reasons he sees volvement, and growth management. revenue sharing,- with its few re- Equity strictions and freedom from exces- sive paperwork, as a more effective Dean Campbell indicated that the form of Federal aid. equity criterion is the all important one and should be considered in any One of the findings of the California functional definition, categorization task force reported by Dr. Hawkins of governmental activity, or struc- was that Federal intervention into the tural reorganization. In order to fiscal and regulatory affairs of lo- prevent disparities, he said, large calities not only forces local govern- scale governments should be estab- ments to spend monies that they lished to incorporate an economic might not normally spend but also base large enough to capture both forces higher administrative costs on the growing and declining portions local government in the form of deal- of that base. Disparities may also be ing with Federal and state bureau- prevented by a distribution of ex- cracies. penditure, which relates service to Elmer Staats, Comptroller General of those most in need and least able to the United States, while noting the afford purchase of the service. Al- problems in the administration of though there are current policies that Federal assistance programs, sees promote the equity concern, such as some hopeful signs that greater co- transfer of all or a large portion of ordination is possible. He cited as the financing of education to a current examples the lntergovern- higher governmental level, other mental Cooperation Act of 1968 efforts, such as general revenue [which set up issuance of OMB sharing, tend to bolster existing Circulars A-95 and A-98 (now structure and activities which may TC 1082)]; the Joint Funding Simpli- or may not be equitably arranged. fication Act of 1974, which permits Harlan Cleveland, director, inter- the use of simplified and uniform national programs, Aspen Institute administrative rules and procedures for Humanistic Studies, Princeton, when a project requires assistance dealt with several kinds of equity, from two or more Federal agencies; including equity between and among the Congressional Budget and Im- individuals, between individuals and poundment Control Act of 1974, organizations, between private and which attempts to improve the Con- public organizations, and between gressional budget review and appro- levels of government. Although priation process; and several legisla- possessing "no magic sohtions" to tive efforts to consolidate categorical problems of equity between levels of grants, including the Housing and government, he feels "that a growing proportion of the public business is going to leak out of the national level of government - some of it into in- An Overview

ternational institutions - and a great deal of it into regional, state, and municipal government." In addition, he is concerned with the equity be- tween the separate branches of gov- ernment which, he says, has become increasingly out of balance. The executive claim of national security placed on a widening range of sub- ject matter has come "to mean sep- arating Congress from the power to make policy," he said. However, he thinks the new budget process will be the first step toward reversing the flow of power. He also recommends that the claim of executive privilege be defined more specifically and interpreted more narrowly; that composition of White House staff be explained more clearly and the staff members be made accountable to the Congress or the courts for their the state - a spiral that is ruinous to Audience participation was a key part of actions; that the Comptroller General equity since the property tax is one the conference. be permitted to act, as an agent of of the most regressive taxes currently Congress, with the full range of in use in this country. "In the three necessary powers such as subpoena years before we passed our Fair supported inquiry and prosecution School Finance legislation, net prop- of executive agents in the courts; and erty taxes on homes and farms rose that the Supreme Court be encour- 74 percent in Minnesota," he said. aged to interpret the law in timely "In the three years following, net fashion through advisory opinions. property taxes dropped 8 percent on homes and farms." A practical example of the concern Before the bill passed in 1971, nearly for equity at work on the fiscal front half of all of the total state and local was given by Governor Wendell tax revenues were raised from the Anderson of Minnesota who de- property taxes. Today, its just 34 scribed that state's school finance percent, he said. and property tax reforms first en- "Before the new law," Governor acted in 1971 and extended in 1973. Anderson said, "the homeowners in These reforms, described by ACIR as one school district had to pay higher the "Minnesota Miracle," increased taxes than those in a neighboring state support of school operating district in order to spend less money costs from 43 to 70 percent, and per pupil on their schools. Now the doubled state school aid from $660- district that spends more, taxes million a biennium in 1971 to more more. And the district that spends than $1.3-billion for the current less, taxes less." fiscal biennium. In 1973, the state passed legislation One of the results of the legislation, freezing property taxes on homes Governor Anderson said, was a re- of senior citizens with the state pay- versal of th~property tax spiral in ing local costs that would have been assessed against the homes; adjust- ing the school aid formula to provide even greater weighting for children from families on public assistance; and establishing a six year plan to raise expenditures of low spending school districts up to the state aver- 66 Citizens ought to be par- age. Another Minnesota law that Governor Evans strongly encourages ticipating in government as went into effect this year provides the citizens of his state to ."be in- regularly as they get up in the that 40 percent of any revenue gen- volved." "Citizens ought to be par- erated from new economic growth, ticipating in government as regularly morning and go to work. whether a power plant or new indus- as they get up in the morning and trial expansion in the seven county go to work," he said. Twin Cities area, be shared among Mayor Lugar pointed out how im- surrounding communities. The intent portant citizen involvement is to a of the law is to reduce inequities modernization effort - such as the between the tax bases of the have merger of Marion County and the and have not communities. City of Indianapolis. "Moderniza- Ronald Welch, property tax consul- tion has succeeded only when an tant and former assistant executive obvious majority of citizens involved secretary of the California State wanted it to succeed," Mayor Lugar Board of Equalization, also foresees said. "The most important mod- movement toward greater equity in ernization occurs when the general property taxation. He ~redictedthe will for unity exceeds even by a small future use of somewhat more margin the deeply held feelings of generous circuit breakers, especially many citizens for divisiveness." of the type that refund all or sub- Citizen involvement is one goal and stantially all property taxes and effect of the decentralized neighbor- imputed property taxes in excess of hood governments urged by Howard certain percentages of owner- Hallman from the Center for Govern- occupants' and renters' income. He mental Studies. Several cities, includ- also predicted improved opportuni- ing Detroit, Pittsburgh, Portland ties to secure relief from excessive (Oregon), Kansas City, Boston, and assessments by appeal to assessment New York City, have provided review agencies; more restraints on mechanisms for more resident in- property tax rates and property tax volvement. These minigovernments levies; continued improvement of usually do not have absolute auton- assessment administration by en- omy but rather exist in what Hallrnan larging assessment districts, requir- calls "metropolitan federalism." ing assessors and their technical Nevertheless, Hallman says, "neigh- staffs to meet higher entrance stand- borhood government should have a~dsand to participate in continuing considerable freedom of action within education; and much greater use of the sphere delegated to it, flexibility computers in the appraisal process. on how best to carry out assigned functions, and the right to initiate Citizen Involvement activities beneficial to the neighbor- hood and certain taxing powers. It Numerous references were made to would operate within a framework of special efforts underway on the part federated urban government and a of citizens and their elected officials system of shared power. Its powers to encourage more citizen involve- should be meaningful even if not ment in governmental processes. The unlimited." initial sweep of "sunshine" laws in state houses across the country has Growth Management nearly put an end to "closed" ses- A third important concern in the sions and has thus greatly aided the carrying out of governmental roles possibility of such interaction. Gen- deals with growth and its panage- eral revenue sharing has also ushered ment now and in the future. Ralph in new citizen participation oppor- Widner, director, Academy for Con- tunities. It is now up to the citizens temporary Problems, Ohio State to take advantage of the opportunity. University, both argues the case for planning for the future and discusses the areas in which it is being carried out. An Overview

The continuation of a system of protect fragile and unique environ- laissez faire government set up in ments; and establishing aesthetic and this country's early years cannot health standards designed to improve continue, Mr. Widner argues. This the quality of life in both metropoli- approach results in what he calls tan and non-metropolitan areas. "hidden" ~oliciesthat do not assure States and localities are moving in desired achievements. In addition, the right direction, he said, in areas scarcity and finiteness have now be- such as comprehensive land use come reality and we "are being im- management, comprehensive growth el led in the face of crisis after crisis policy statements, and coastal zone toward the formulation of policies and interior wetlands legislation. on growth and programs for the con- The Federal government actions have trol and allocation of resources which "lagged behind states and localities only a few years ago would have in response to these new conditions," been unthinkable." Yet, not only is Mr. Widner noted. agreement on the problems we wish to plan for difficult, but also of con- He says the Federal responsibilities Arthur Naftalin, professor of public affairs, cern are what Mr. Widner calls con- for a national growth policy could University of Minnesota, left, and Farris flicts in values such as equity of best be met through the effective use Bryant, former governor of Florida and former chaimn of ACIR. opportunity versus free market; cen- of economic policy, Federal regula- tralization versus decentralization; tory powers, and the establishment preservation versus development; of minimum social and environmen- and individual rights versus group tal standards that would apply rights. It is the individual versus nationwide. For with the exception group rights conflict that most af- of the public domain, he says "the fects national, state, or local growth Federal government exercises little policies. For if such growth policies influence over the specific use of are adopted, what are the implica- land in this country." tions for future Americans in terms B. R. Stokes, executive director of of their freedom of choice to live and the American Public Transit Associa- work where they wish? tion, agrees that national goals Mr. Widner does see a pattern evolv- should set the tone for local action. ing out of the confused growth He argues that regional bodies policy debate, however. He describes should set these programs in motion the pattern as a three legged stool, - at least in the area of trans- with one leg social policy, one eco- portation. nomic policy, and one environmental policy. Growth policy must meet the "It-. is our view that Federal urban objectives of all three. And it can be transportation policy to be effectively done, he says. States and localities realized, must be translated into ac- are doing it by providing for uses of tion programs at the regional level," land, water, air, energy, and material he said. "The planning process is the resources that will minimize environ- first step toward regional implemen- mental disruptions and promote the tation. Federal policy should require reuse and conservation of material such a planning process and should resources; attempting to channel set in motion the programs by which population growth and development regional plans are accomplished." toward areas with greater residual He continued that the Federal DOT ,, carrying capacity;" attempting to should outline the general require- ments but that there should be sub- stantial local option for tradeoffs that will reflect local conditions and values. These regional plans should involve state, regional, and local governments, he said. tion; and "perhaps even an intensive and serious look at the U.S. Consti- tution and its relationship to modern American life." The New York Metropolitan Trans- portation Authority is an example of a quite comprehensive transporta- tion planning and operating entity serving an extremely large urban area, according to Edwin G. Michael- ian, director of the Institute of Sub/ Urban Governance at Pace University and member of the Metropolitan Transportation Authority. The MTA was created to correlate commuter transportation and mass transit and comprises the New York City Transit Authority which operates subways in New York City and the bus system in various boroughs and Nassau County, the Long Island Railroad, John Driggs, former mayor of Phoenix and Harry Hughes, Maryland secretary commutation into and out of New former ACIR number, left, and Arthur Okun, of transportation, also emphasized York City on the various divisions senior fellow at the Brookings Institution. coordination among levels of govern- of the Penn Central Railroad, the ment "to help find a solution and Tri-Borough Bridge and Tunnel Au- then continue to work together to thority, the Staten Island Rapid implement those solutions." An Transit rail line in that borough, important part of this partnership is and two airports. the regional planning agency which Fiscal Federalism he says is essential. "Both our major transit activities in Baltimore and No aspect of government so clearly Washington rest on a solid founda- highlights the complexities and ten- tion of many years of cooperative sion of a Federal system as do fiscal Federal, state, and local planning," concerns. Some state and local gov- he said. ernments have tax systems broad enough to permit equitable treatment Bruce Barkley, acting director of the of all citizens, but other govern- Office of Transit Management, ments, in various ways, are forced to Urban Mass Transportation Admin- rely too heavily on the most regres- istration, U.S. Department of Trans- sive revenue sources. While many portation, agrees that there should be local governments argue for more planning on the Federal level in his Federal and state money on the field and believes this planning will grounds that it is collected in a more enable state and local governments to progressive manner, they object to better meet their responsibilities. strong Federal or state controls over use of those funds. With the multi- "For while the Federal government tude of interrelated concerns, it was has no business setting standards for Federal aid and its impact on state the exact shape and form of local and local recipients which provided structure, it does have an obligation the most discussion. to require the effective management of Federal resources in urban areas," Present Mix of Federal Aid he said. He therefore supports a Although admitting that there still strong statement of policy and pro- are problems with Federal aid to state cedure at the Federal level, defining and local governments, Comptroller appropriate Federal, state, and local roles; state criteria for local govern- ment reform through state legisla- An Overview

General Elmer Staats believes that the cize them so severely, adds to their 66Thepresent mix of Feder- present mix of Federal assistance flexibility," he said. The social serv- al assistance is a eood (categorical grants, block grants, ices program, until limited by Con- general revenue sharing, and tax ex- gress two years ago, was an example penditure) is a good one. Each plays where he says "specialists at the state an important role "in providing Fed- level drove their trucks, at least 50 eral financial assistance, a pattern of them, right down the middle of developed through an evolutionary that program, running over the gen- and incremental process over nearly eralists in the process and showing two centuries," he said. how broad a categorical grant can be when one knows how to use it." Categorical grants, vociferously ob- jected to by many state and local He says what little research is now officials, serve the purpose of deal- available indicates that there is al- ing with designated problems of na- most no difference in use of money tional concern in a specific and uni- as a block grant or categorical grant. form manner and with maximum "Not only that, but Congress almost involvement of state and local gov- immediately started adding new cate- ernments. Dr. Staats said. He thinks gories to the block grants," he said. such grants are particularly valuable Among restraints on revenue sharing for research and demonstration ac- have been pressures on state and tivities or when the overriding objec- local governments during an infla- tive is to prescribe a minimum level tionary period to provide for budget of services. deficits that must be covered. Pres- Block grants, more popular with sures to increase public salaries are many state and local officials, reduce another restriction on the innova- administrative work and costs and tive and imaginative use of the provide recipients with greater flexi- funds, he said. bility in using available funds while Governor Evans of Washington placing a major responsibility on attacked categorical grants saying states and local governments. their high administrative costs con- General revenue sharing, described vert them virtually into a high cost by Dr. Staats as "general fiscal sup- welfare system for administrators at port payments or . . . income re- the expense of the intended benefi- distribution payments," will be the ciaries. He thinks the categorical pro- most controversial, debated, and grams should be dismantled. He is, studied of all Federal assistance pro- on the other hand, in favor of gen- grams, he predicted. eral revenue sharing which he says Daniel Elazar, director, Center for the "is essential to effective federalism." The State of Washington has been Study of Federalism, Temple Univer- sity, thinks that categorical grants sharing revenue with its local gov- are not as narrow as often thought, ernments for years, he says, and will block grants not as broad, and rev- continue to do so. enue sharing not as free as it is sup- Senator Edmund Muskie of Maine, posed to be. Chairman of the Senate Budget He describes categorical grants as Committee and the Senate Inter- ,, not as narrow as they sometimes governmental Relations Subcommit- seem," and he says that, like general tee, supports revenue sharing but revenue sharing, they are "fungible." warned conference participants that "Indeed the fact that they tend to be it faces "rough sledding in Con- controlled by specialists, the very gress." There will be those, he said, element of categorical grants that has who will not be anxious to continue led government generalists to criti- revenue sharing due to the enormous Federal deficit. There will be those who think it is not going to the poor and needy and should be abandoned. LLThe proper role for reve- And then there are many who are is no more sharply illustrated than in nue sharing is and always has "simply indifferent to the fate of the financial relationships to the been that of a complement- revenue sharing. It is not an issue Federal-state system." not a substitute-for a balanced that generally stirs passions in its Although he emphasizes that the mix of general revenue shar- support." changing relationship is not neces- ing, block grants, and cate- Senator Muskie pointed out three sarily bad, he says its potential im- gorical programs. areas where changes may be pro- plications must be considered. In posed in the new revenue sharing particular he encouraged the concept bill: revising the revenue sharing of a periodic assessment of both the formula where it deprives cities of need for and form of various assist- needed funds because they are lo- ance programs. cated in relatively affluent states; National Economic Impact on using revenue sharing as an incen- States and Localities tive to state and local governments to move toward more progressive tax And finally in the fiscal area is the structures; and improving civil rights issue of the national recession and its enforcement. impact on state and local govern- ments. The session on this topic was The general goals of the legislation a debate between Arthur Okun, when it passed in 1972 are still good senior fellow at the Brookings Insti- today, he said. These include a de- tution, and Edgar Fiedler, assistant sire to relieve the fiscal problems of secretary for economic policy, U.S. hard pressed local governments Department of the Treasury. which have inadequate or inflexible tax bases; to reduce the regressive Dr. Okun strongly supported a Fed- burden of state and local taxes by eral tax cut to be supplemented by a substituting revenues from progres- temporary cyclical increase in gen- sive Federal income taxes; and to give eral revenue sharing based on the people at the state and local levels level of the national unemployment the resources and flexibility to devel- rate and so constructed that it op solutions suited to their unique would phase out automatically when problems. prosperity is restored. "The proper role for revenue shar- "If the states and cities can produce ing is, and always has been, that of a the evidence that such an added in- complement - not a substitute - for flow would prevent recession in- a balanced mix of general revenue duced slashes in expenditures and sharing, block grants, and categorical increases in taxes (rather than merely programs," he said. have Uncle Sam do their borrowing for them), Congress should be The future of Federal aid was ad- receptive to this proposal," he said. dressed by Comptroller General Although primarily concerned with Staats, who says there will likely be national action by the Congress and further growth in the Federal assist- the President, Dr. Okun did urge the ance programs. Yet he warned that states and localities with their diver- he doubted "whether we have fully gent interests as oil producers, as assessed the dangers which lie ahead users of heating oil, or as suppliers - and which are possibly inherent in of resort services, to "view their own massive Federal aid - unless we are interests in the perspective of the willing to realize that over a period of urgent national interest to achieve time we can, and possibly already independence from the economic and have, radically revised our concept of political power of the world oil the relationship of the Federal gov- monopoly." ernment and state and local govern- The decisions that must come from ment. The concept of the Constitu- these economic circumstances will be tion as a living and flexible document large for the entire country and the entire decade to come, he said. "And their significance extends beyond An Overview

their impact on real GNP, the infla- In contrast, he noted current areas tion rate, and the unemployment of concern that were not major issues rate. They are major tests of the re- a decade ago, including: sponsiveness, soundness, and Increasing unease about the nationality of our political and eco- federal system and overall fiscal nomic institutions and that is why viability of the nation as a they must be passed," he said. whole; Dr. Fiedler downplayed the crisis A drift toward the "layer cake" somewhat by saying Americans are (symbol of three distinct and "fascinated with catastrophes" and separate planes of government) "hardly respect an economist who talk of earlier years; doesn't predict destruction." All the Most concerns expressed in problems are real but will be solved general terms of finance and in time. Our tax system is strong, he structure rather than in specific said, and operates well. In fact, he functional areas. feels the economy will recover The Future of Federalism whether there is a major tax cut or not. Daniel Patrick Moynihan, professor of government at Harvard Univer- He also expressed the view that the sity and former Ambassador to government - at Federal and state Edgar Fiedler, assistant secretary, economic India, concluded the conference with and local levels - is too involved in policy, U.S.Department of the Treasury. a speech entitled, "The Future of economic management. "Someone Federalism." will have to change the trend," he said, "of running more and more to In order to test the present and the government for payments to individ- future, he looked at four projections uals." He also feels that there is too he made in the past. These four con- much government regulation. "There ditions described in 1960 in a paper are a large number of cases where prepared for the Commission on the UTherewas little clamor for government has mismanaged long Year 2000 would, he felt then, deter- mine the future of federalism. The additional Federal funds and term relationships," he said. "The not much push for new Fed- ICC, for instance, came close to conditions, which he believes are still valid today, include: eral programs. The urban destroying the railroads by requiring crisis seemed to be submerged, too many tracks and a too stringent The nationalization of public rate setting system." and there was verv little men- policy, an event he describes as tion of the court &stem. Problems Not Mentioned following from the achievement of a genuinely national society. 99 Although the conference dealt pri- If there were a goodly supply-of marily with the present, William local problems "there were Colman ~rovidedan interesting per- fewer and fewer specifically spective during the final session by local subjects." comparing problems discussed in The rise of the Federal fisc as 1975 with those that might have the primary source of discre- been of concern at a similar confer- tionary public expenditure. ence ten years ago. His list included: Convention has it that this is That there was little clamor for owing to the superior revenue additional Federal funds; raising potential of the national That there was not much push government, he said. for new Federal programs; The tradition of decentraliza- That the "urban crisis" seemed tion and the fact that federalism to be submerged within more is greatly inducing the grant-in- generalized fiscal and adminis- aid as the principal form of Fed- trative concerns; eral expenditure on domestic That there was very little men- programs. "Certainly there is tion of the court system. no evidence that this is to be anything but an enduring aspect of federalism," he said. a The diffusion of the middle He predicted that special pur- class ideal of participation in pose governments would multi- public decision making will add ply and multipurpose metro- a considerable and, in a sense, politan government would not. unanticipated utility to the com- Indeed special districts are still plexity of the American govern- proliferating. ment structure, which requires He felt that there would be a such great citizen participation trend toward metropolitanism in to operate. Citizen participa- education - with fewer units tion is a good which Americans and larger jurisdictions. Al- actively seek, especially as they though the movement is not become more educated and have notably in evidence, as he pre- more discretionary time and dicted, the busing issue relates resources, he said. He would to the issue problem and he feels further expand on that today to it may come true yet. emphasize participation as a He predicted a national social ~roductof government, espe- accounting system to evaluate cially its importance in a multi- social programs. Although re- ethnic society like ours. "There sults are not so positive, never is no ethnic group that can't so emphatic as he had hoped find some office to which one of for and expected, this has oc- its members can get elected or curred - or been attempted. He appointed, if it so desires," he finds that "social accounting is Arthur Okun, senior fellow, Brookings said. Yet the problem lies in the increasingly an aspect of public Institution. fact there are so many govern- affairs in the United States. ments that few offices are that With respect to government important. Hence, the process programs, it has assumed a role of ethnic succession is eased. of presumptive normalcy along- Those "in" do not that much side the financial audit func- mind stepping aside for those tions of earlier years." "out." The ins know that not A quest for community is what that much is at stake, really, he he calls the effort to overcome said. and prevent alienation. Al- Dr. Movnihan then reviewed six though this is an area difficult themes ;or the Third Century as he to measure and too often one had formulated them in 1960. He be- that runs counter to the cen- lieves most have survived the last 15 tralization that seems to be oc- years and stand up well today. curring, he believes "it is rea- He concluded the "multitiered sonable to expect that the quest system of bureaucracies and for community will continue as government activities" was as- a theme in American life and suming a permanent shape he hence in American Federalism called "wedding cake federal- and that it will continue as a ism" surmounted by the person countervailing influence to cen- of the President. He says the tralization and uniformity, a pattern holds today: "It even force, as it were for paradox." became more pronounced as the That what has been called the growth rates of expenditure and "rediscovery of the market" employment at the lower levels could be serviceable to planned of the federal system continue to and unplanned economies alike, be generally greater than those to public and private enterprise, higher up." The people are is a 1960 prediction of his he increasingly at the bottom. The called "wholly wrong." Some trend will continue, he said, with the money mostly Federal, the iobs mostlv local. An Overview

efforts along this line, notably Dr. Moynihan's own "Family Assistance Plan" and experi- ments including experimental school voucher programs and housing allowances, have come to little or nothing. To the con- trary, he said, government direc- tion grows. The reason he says the last predic- tion was totally wrong was that it was "the only one in which I dared to predict that events would com- mence to move differently from the way they had been moving." He pre- dicted the market place idea because it seemed "too good an idea not to change minds," he said. "As this has not happened," he said, "I conclude that the forces that have been shaping federalism in increasing the strength of state and Daniel Patrick Moynihan concluded the recent decades are immensely power- local government." conference with a look into the Future ful and are not likely to be reversed Yet in the face of what he feels is the of Federalism. by anything save a large movement trend toward centralization, are the of opinion: not expert opinion, but innovations occurring at the state public opinion." and local level. Among these he The forces? They are growth of gov- mentions New York's disability ernment at every level, in every form insurance program adopted when the - or the conquest of the private Federal government was "nearly im- 6LTheforces that have been sector by the public sector. He sug- mune to such thoughts" and no fault shaping federalism in recent gests the only way to change this automobile insurance adopted by decades are immensely power- would be a genuine political and many states well in advance of ful and are not likely to be re- cultural decision by Americans that national action. "Policies do rise in government is large enough and the federal svstem," he said. "If versed by anythin save a should not get larger. pressed, the professor of govern- large movement oB opinion: He predicts that this will happen; ment today is more likely to suggest not expert opinion, but public that "well before government is tak- that governors are put in Washing- opinion. ing half the income of the country, ton - when thev are - to see if thev $9 somewhat past the 40 percent point, can't get the national government to we will taper off." And at that point, do something that state government issues of federalism will once again can't do." assume a true saliency, he said, for The system continues, he said, re- we will be discussing the distribution sulting in no small measure from "a of power and resources in a relative- marvelously flexible and enduring ly stable state. system of shared but interconnected

"In the near future, however," he Dowerx which for two centuries has said, "we will continue as we have provided a stable and enduring gov- done: increasing the strength of ernment over a vast and hetero- national government in the name of geneous society and an even more stupendous territory." The conference participants seemed to agree. Two. American Federalism: By Robert E. Merriam A Paradox of Promise Chairman, Advisory Commission on Intergovernmental and Performance Relations

In 1776, a dream became reality; Born and Raised in Paradox 13 years later its structure was As Chief Justice Salmon P. Chase formed. Nearly two centuries later wrote in an 1869 decision, "the we gather here in a major assessment Constitution, in all its provisions, of that dream's performance. looks to an indestructible Union, Just over 15 years ago the Congress composed of indestructible states." established, and the President ap- But the nature of American federal- proved, the first formal mechanism ism, we all know, is far more com- to monitor federalism in action: the plex than that. Advisory Commission on Inter- As every topic we will be discussing governmental Relations. Ours is the in this conference will demonstrate, sometimes lonely and mostly un- we live within, we were nurtured newsworthy task of reporting on and within, we will create our future in a recommending ways to improve the system rooted in paradox. workings of our federal system. There is the original paradox of our Mine is the pleasant responsibility to written Constitution itself - a docu- suggest to this first National Con- ment written in secrecy by a nation's ference on American Federalism in elite, determined to place some lim- Action some tests against which itations on what they perceived to be your discussion may measure the the dangers of mass passions. Yet the performance against those early-and federal order permitted the develop- subsequent-promises, remembering ment of one of the greatest free always that the final measure of republics ever seen, and as we so democratic government is its ability often have heard, the longest con- to foster freedom with equity while tinuous democracy in world history. contributing to a better life for all. The federal system designed by the As we confront the agenda for these Founding Fathers was also designed two days, therefore, we must ask to bring political stability to an ourselves what tests we apply to inchoate assemblage of 13 proud and measure our success. My list of tests quarrelling sovereignties. Through is a suggestion, not an all inclusive decades of testing, including a Civil list. It asks: War, that stability was created. Yet Does federalism protect and en- the federal system has also allowed courage democracy and freedom? dynamic forces to express them- Does federalism result in govern- selves; indeed our entire history may mental innovation? be seen as a continuous process of Is the federal system efficient in new causes and forces arising, none the allocation of limited resources? ever triumphing absolutely, yet each Does federalism promote equity affecting our laws and in the treatment of all citizens? mores. Does federalism contribute to the There is probably no need to detail improvement of the quality of life all the paradoxes of American fed- of all citizens? eralism - the paradoxes and seem- Is the federal system strong ingly irreconcilable promises of enough, resilient enough, and liberty and equality, of democracy flexible enough to meet the major and efficiency, of unity and diversity, challenges of the present, and of of a more perfect Union which is not the future? yet perfect. No doubt the answers will be both We do know that the system created conflicting and perhaps confusing, by the Founding Fathers has proven because they do indeed contain many its extraordinary resiliency over al- paradoxes. In the remarks which most 200 years. It is possible that we follow, I shall touch on some aspects attribute too much of our success to of the questions I have raised. TO several of the questions I will dare to suggest an answer. i6Thefact is that Ameri- federalism itself, with its carefully reason to believe, just as two cen- cans are not about to give up structured but flexible divisions of turies ago, that if a nation's territory powers both between the states and is large, its essential choice is auto- the historically non-central- cracy or federalism. ized, federal nature of their ;he national government and between the branches of the national govern- Even if that thesis were proven government system. ment itself. It may be, indeed, that a faulty, however, the fact is that parliamentary system like Great Americans are not about to give up Britain's, or any other form of es- the historically non-centralized, sentially democratic government with federal nature of their government some restraints on any single base system. In fact, in our attitudes, we of governmental power would have reflect the very paradoxes and ten- sufficed just as well for us in the sions that have been inherent in the past, or today. American federalism system since its But in defense of federalism. I would inception. On the one hand, we ex- remind you that when the bun din^ pect much of the national govern- Fathers looked around at 2,000 years ment; on the other, we seem to have of human history, they could see no an intrinsic reference for the gov- successful model of a nation covering ernment that is closest to us. even then a great expanse of terri- Recent polls by Louis Harris and tory that guaranteed its people both others confirm public preferences for freedom and stable popular govern- federal responsibility contained with- ment. in a framework of shared pluralism. Indeed, the only governments cover- The conclusion is inescapable: if ing an expanse of land comparable to American leaders, from the Constitu- the America of 1787 had been em- tional Convention forward, have pires - Russia, China, and the Ro- been ambivalent about the locus of man Empire - and they had all been power and responsibility within our autocracies. The theory of the time federal system, that same ambiva- was that any nation covering a broad lence is still reflected within the territory had to be run with an iron broad mass of the American people. hand and had to be aggressive. Its But while that historic paradox own survival, the theory went, dic- remains, a new problem now con- tated that it dominate its own people fronts every level of American gov- and its neighbor states, since if it did ernment in our time: namely, the not, it would be destroyed by the massive floodtide of public dis- sharks surrounding it. illusionment with the leadership For the American Constitution being provided them. writers, the answer was federalism - Watergate has accelerated these atti- a way to have the advantages of size, tudes but has by no means been the including, if need be, the capacity for only cause. Indeed, as our 1974 an- unified selfdefense, without losing nual report notes, a positive aspect of the advantages of a republican gov- last year's incredible events has been ernment of democracy and liberty. a demonstration of the ability of our Now, two centuries later, we might system to effekt a peaceful transfer think that rapid communications of power in the midst of near chaos. make federalism less a necessity in a Nevertheless, confidence in our po- nation of great physical size. But litical and governmental leaders at all look about our world and vou will levels is deeply shaken, cynicism see that every spatially large, free about them is high, and only the system, except that of India, in prac- continuing confidence in the system tice, is federal. Practically every large free nation devolves authoritv and decision making power to its con- stituent units. So there is still good American Federalism: A Paradox of Promise and Performance

carries us forward. Nine out of ten Congress furnished the margin of people in Harris' latest poll, for victory in scrapping the seniority example, expressed the cardinal system, an accomplishment that may article of faith that the government rank as one of the major reforms in can be made to work efficiently and the history of Congressional gov- effectively, and within the parameters ernment. of liberty a free people require. Who, then, is to say that the Ameri- And now the questions. can system is ossified, closed, un- responsive? Does Federalism Protect and I am reminded of a controversial little Encourage Democracy and book written earlier in this decade by Freedom? the Frenchman Jean-Francois Revel. We start with yet another paradox: America, he said, was in insurrection while public trust in government and against itself. He defined the basic its leaders has plummeted to historic issues as lows, one could also well argue that a radically new approach to moral significant changes are taking place. values; the black revolt; the Look at last autumn's elections. On feminist attack on masculine domi- the one hand, they showed Ameri- nation; the rejection of young cans "tuning out" of the political people of exclusively economic and process in massive numbers. Only 38 technical social goals; the general or 39 percent of the voting age adoption of non-coercive methods citizenry bothered to go to the polls, of education; the acceptance of the lowest turnout since the wartime guilt for poverty; the rejection of year of 1942 and eight full percent- an authoritarian culture in favor of age points behind the turnout in a critical and diversified culture; 1970. . . . the broad rejection of the spread of American power abroad; But those who did vote regEtered . . . and a determination that the some remarkable decisions in open- natural environment is more im- ing up the system by electing rep- portant than commercial profit. resentatives of groups historically underrepresented in our system. Revel's argument was that the United Blacks were elected in unprecedented States was less autocratic and numbers to Southern legislatures and granted more freedom of expression, became lieutenant governors of Colo- of the press in particular, than prac- rado and California. Hispanic gov- tically any other great nation, and ernors were elected in New Mexico certainly his own France; that this and Arizona. Connecticut elected its nation had the economic wealth to first woman governor, a woman who accommodate a highly pluralistic made it on her own and not as a society of free choice for individuals successor to her husband. North and various subcultures; that its Carolina elected the first woman federal governmental structure was chief justice of any state in American flexible enough to accommodate history; San Jose elected the first dynamic new social forces, and woman mayor of any city over a half sound enough to guarantee sufficient million population - a woman who, stability in the process of rapid incidentally, had first been propelled change. into politics when the local author- "The revolution of the 20th century rities failed to respond to her com- will take place in the United States," plaints about the need for a street he wrote, "It is only there that it can light at a crossing where her children happen. And it has already begun." went to school. Advocates of con- Against all of this, however, is a sumerism, of environmentalism, of breakdown in political party respon- open government, "sunshine," and ethics laws were elected from coast to coast. The new Democrats elected to sibility, spawning talk of third, with its multitude of offices from the fourth, and even fifth parties, all of local to the national level, to provide which suggests basic weaknesses in a real opportunity for citizen par- our concensus forming mechanism ticipation in government. as outlined in David Broder's book However, in our not very distant past, The Party's Over. How, then, do we the potential for any serious, dis- evolve the programs to cope with a interested citizen involvement was totally interdependent world econ- severely circumscribed in a large omy, energy shortages, population number of American states. Ana- expansion, racial prejudice, and conda copper "ran" Montana; the world ideological confrontation? The coal interest manipulated Appa- nearly catastrophic national debate lachian states; Maine was under the over Viet Nam and today's divisions thumb of the pulp and power inter- over inflation versus recession only ests; the "pork chop gang" domi- serve to highlight the dilemma. nated Florida. In manv states and Exacerbating the dilemma of political cities, political bosses, in close alli- parties in their decision making role ance with the dominant economic are two causal factors: interests, set the limits of public First is the difficulty that potential debate and decided who could or local and state and national leaders, couldn't make his way in elective in an age of participatory democracy, politics. have in winning people's confidence But now the system has opened up in so that they can really lead and ac- startling measure, even in the South- complish something. The legitimiza- ern states, where the ruling circles tion of authority, a prerequisite for often used the segregation issue to satisfactory governance in any pohti- prevent real ~opulardemocracy. cal system, becomes more difficult There are manv who believe that than in times past - and is certainly racism, that perennial scourge of our one of the crucial problems of our society, will sooner be brought to day. heel in the South than in the North. Second, as Harlan Cleveland recently Within the multitiered federal system, noted in commenting on the tide of the opportunity for citizen participa- "sunshine laws" and other citizen tion in the governing process is access and participation laws across greater than ever before in our the United States, "evidence is piling history. up that the very great benefits of So if one is to ask whether federalism openness and wide participation are fosters democracy and freedom, I being offset by the risks of making it would say "yes" - most particularly difficult or impossible to get done in a decentralized nation where the the complicated things that have to levels of education and of citizen be done if we are going to protect our sophistication are high enough, in a surrounding, our bodies, and our time when such institutions as legal- selves." ized segregation and rotten borough The problem, then, really is to bal- apportionment have been swept ance the need for recourse to insensi- aside, so that citizens have a real tive governmental action with the opportunity to control their own need to preserve the essence of destiny. Yet, as noted, a price must official responsibility. be paid for this as with all other "rights." Federalism plays a major role in all of this, both positively and negatively. Does Federalism Result in Govern- On the positive side, we have known mental Innovation? since the days of Andrew Jackson There is a real prospect that the the potential of the American system, American federal system - particu- larly on the subnational level - may be on the brink of an era of creative innovation paralleled only by the American Federalism: A Paradox of Promise and Performance

Progressive era earlier in this century. impact that Common Cause and I realize that prediction, in typically similar groups have had in effecting paradoxical style, flies in the face of broad campaign spending and ethics the problems of participatory demo- legislation in the states may not be cracy I was discussing a few mo- copied by groups with a myriad of ments ago. But particularly in the other "causes." With national co- smaller universes of localities and ordination of their efforts, facilitated states, it seems to me that the new by instant communications, both political forces abroad in the land, organized groups and free floating operating in the least controlled innovators can be expected to spread political atmosphere of our history, fresh legislative ideas rapidly within may produce some remarkable results the new political climate. in the years ahead. They will, of course, encounter the There is reason to believe, I would formidable entrenched forces in each suggest, that the creative juices sym- state, and they may lose as many bolized by the New Deal and New battles as thev win. But their in- Society eras have been sapped on the creased sophistication and under- Federal level, that tight Federal standing of the political process, budgets will make it less practicable harnessed to the stars of legislators to institute sweeping new national anxious to make a mark for them- programs, and that the states may be, selves and rise to higher office, as was so proudly claimed in the should provide a remarkable pano- Progressive era, the laboratories of ply of thrusts for innovative state social change in America. action, many of them successful, in There are several reasons this mav be the years ahead of us. The subject so. One is that the states, in their matter is likely to be very broad, administrative and planning capaci- ranging from land use control and ties, are far more sophisticated in- consumer legislation to court reform struments now than thev ever have and a challenge to industry oriented been. Another is that inkany states, regulatory agencies. once our current fiscal crisis is What we are not likely to see, if his- passed, there remain substantial tory is any guide, is much tinkering reservoirs of untapped taxes, even with the fundamental structure of considering the constraint of inter- state government itself. The initiative state competition. Fiscal flexibility and referendum process may be used will be enhanced thro'ugh the growth widely - a phenomena that those of of Federal block grants and revenue us with a high opinion of the delib- sharing. The states retain the essen- erative and more balanced legislation tial power to do almost anything, process may not at all welcome. But short of abrogation of Constitutional I would be survrised if we ended this rights or conflict with Federally pre- century with more than one uni- empted legislative areas, that they cameral state legislature or with a would like to within their own parliamentary system in any state. borders. They fund a great portion of The interest of the most effective the costs of local governments and reformers in the American svstem seem certain to increase their legisla- has always focused more on pro- tive and executive oversight and cesses and programs than structures, review of how that money is spent - and I doubt if that will change. a step likely to lead, in turn, to new What we do not know is whether the legislation. Finally, one must con- innovation on the state level will be sider the new composition of state all good or bad, or as is more likely, a legislatures, more urban, more edu- very mixed bag. But I do think it safe cated, filled with more imaginative to say that the innovations which people than at any earlier point in this century. I see no reason why the remarkable government set out to do anything, --This relates to what one have high political appeal, or are 66 substantively successful, will quickly it did it well. It knew how to plan, might call the silent but real and it had a superb bureaucracy to promise of American fed- be copied by many states across the land, as often happens. In all hon- carry out its plans. eralism-not only the guaran- esty, we can't ignore the fact that we The Americans, Tocqueville ob- tee of freedom and popular have a long way to go in this area, served, seemed incredibly inefficient. government, but also the but the trend for innovation among You could look over the young na- promise of unleashing human the states is definitely here. tion and see a field littered with energy through decentraliza- started and abandoned efforts. But Is the Federal System Efficient? there was one curious difference, he One may ask this with great candor. noted. The Americans (and the fig- Does federalism identify needs and ures here are my invention) seemed priorities well and move to deal with to be starting up 20 times as many them in an effective, timely manner? projects as the French. So even if Can we make tough decisions as they were only half as efficient as the needed? And here, based on the French administratively, a simple bit American experience up to now, we of arithmetic revealed that they were federalists have every reason to be getting ten times as much done in rather humble. There is a lot of their inefficient way. justification to the criticism that our This relates to what one might call consensus method of reaching deci- the silent but real promise of Ameri- sions is unbelievably laborious and can federalism - not only the guar- time consuming. The capacity to antee of freedom and popular gov- ~lanwell for the future, and then act ernment, but also the promise of in accordance with plans, is one of unleashing human energy through our weakest points. At every level of decentralization. Local initiative has government, officials generally hold been, and remains, one of our most office for terms too short to formu- enduring strengths. late plans and then effectuate them. But it does pose problems for us as a Indeed, the question is sometimes mature nation. Before, we had a vast asked - can we really afford fed- continent awaiting our settling and eralism? With our thousands upon experimentation, and there was thousands of governmental units, plenty of room to make mistakes. there is gross duplication of admin- Now we face the problems of severe- istrative machinery. Foreigners ly limited resources-scarce land, sometimes observe that only in scarce energy sources, and scarce or America with its bountiful resources at least frightfully expensive capital. could one afford a governmental Our gains in industrial productivity system like ours. have dipped seriously, particularly in The opposite question, of course, is comparison to other industrialized whether an autocratic system capable nations, in the last decade. The share of swift decision, would be more of our gross national product rep- efficient, let alone more economical. resented by government has risen A single administrative mistake in a from 22 percent in 1946 to 33 per- large autocracy can be disastrous - cent at the present; the share repre- as the Soviet, and earlier the Nazi, sented by state and local government experiences have amply demon- has soared from 5 to almost 15 strated in this century. percent. Alexis de Tocqueville made some I am sure you have seen President interesting comments on efficiency in Ford's statement in his budget mes- the decentralized American system sage that total government spending which we might bear in mind. Very will grow to more than half of our freely translated, his point was that national output if domestic assist- in the France of his time, when the ance programs grow in the next two decades at the same rate as in the past 20 years. A major part of the increase of recent years has been in American Federalism: A Paradox of Promise and Performance

social insurance programs, in wages 1960s are but the latest manifesta- of government workers, and pen- tion of Federal competence to assure sions and fringe benefits. National citizen rights; paradoxically, those health insurance would represent actions abrogated state sovereignty another massive increase. Should but made possible more viable demo- political resistance fail to slow these cracies within the states. trends in future years, we must ask A strong Federal government, ourselves, how much elasticity will through the process of national be left in our system? How much dialogue, has also made the decision money will be left over for new social in modern times to assure a certain and environmental programs, for floor of economic security to citizens mass transit, for experimentation, for in all states. The Harris survey men- the expression of local energies? tioned earlier found that 89 percent And how, we might be asking our- of the American public agreed with selves over the next two days, do the the statement that "the Federal gov- various proposals for the mod- ernment has a deep responsibility for ernization of subnational govern- seeing to it that the poor are taken ment on our agenda, including ad- care of, that no one goes hungry, and ministrative improvements and sub- that every person achieves a mini- state regional reform, relate to our mum standard of living." We are all overall fiscal condition, and our aware of the mass of legislation, ability to tap the creative impulses of ranging from social security to un- the American people. employment compensation and wel- fare, which has been enacted to Does Federalism Promote Equity in assure those ends. the Treatment of All Citizens? One could say, with substantial evi- One of the thorniest problems of dence, that the assurance of civil and American federalism is achieving economic equity does not depend on equity for all citizens at the same a federal system. Particularly in the time that allowance is made for economic area, the United States has diversity within the system. By lagged behind the first nations to equity, I do not mean equality; total adopt social security, work injury government enforced equality would, assistance, sickness insurance, and of course, eradicate all diversity in unemployment insurance. We have our system, and with it freedom and still to adopt a family income main- liberty. But if we view equity as fair- tenance plan, although it is already ness and justice, then federalism may law in almost 20 other nations. be said to foster it in some cases and But federalism, in advancing or pro- to hinder it in others. tecting equity in its widest sense, has Federalism fosters equity in that it some distinct advantages. Particular- functions in a way that tends to ly, federalism means that the interests protect the rights of minorities. It of various types of minorities in the means on the one hand that there is a society are not trampled by the ex- strong national government - in- cesses of majority will - the threat deed, the supremacy of the national which Madison, in fact, saw as the over then powerful state govern- chief danger of "direct democracy." ments was considered the greatest Remember that Congress is a direct victorv of "federalism" as it was reflection of the federal system, the defined in the early years of the Senate because of its equal repre- republic. The reapportionment deci- sentation for states, the House be- sions and the civil rights acts of the cause decentralization is honored through the requirement that mem- bers come from districts and retain a UStill, overall, I think we loyalty to constituency greater than except for the upper brackets, public could say that American fed- their loyalty to party. employee wages in many jurisdic- eralism has done a good job to This legislative system tends to pro- tions now seem out of balance on the protect and foster equity for tect minority rights if the minorities high side. its citizens-and that we can are enfranchised and are politically Still, overall, I think we could say be better satisfied with its articulate. For such minorities, our that American federalism has done a record now than we could have System may assure equity better than good job to protect and foster equity been a generation ago. any other in the world. When the for its citizens - and that we can be 44 Voting Rights Act of 1965 resulted better satisfied with its record now II in the addition of mire than 2- than we could have been a genera- million blacks to the voting rolls in tion ago. We would hope that in the the South, we took a massive step future, however, less reliance will be toward assuring their participation in made on judicial "mandating" to this process. The recent dramatic achieve legislative responsibilities. rise in elected black and Hispanic Does Federalism Contribute to officials at all levels of government, starting from local power bases, the Improvement of the Quality of Life of Citizens? demonstrate dramatically the inter- All action of the parts of our federal But let us assume that all these prob- system. lems eventually will be solved and Still, there are those who are so that we have a federal system that politically impotent, or who suffer provides us with a sufficient measure under ancient injustices which ma- of freedom and democracy, of in- jorities are unwilling to correct, that novation and efficiency, and of they cannot enjoy the benefits of leg- equity. We might have all that and islative slowdown and courtesy and still fail to provide what is ultimately must rely on the courts. The Warren most worthwhile for people, namely Court made massive strides in assur- the parts and conditions of human ing the rights of the dispossessed of existence that go under the general America. But while it used national rubric of "quality of life." power to force states to be more But what is "quality of life?" We democratic, the shoe now seems to be have seen a growing agreement that on the other foot. One of the most the traditional measures of well interesting developments of recent being, such as the Gross National years has been the movement of sev- Product, the Consumer Price Index, eral state supreme courts, with Cali- income and educational levels, how- fornia's perhaps the most outstand- ever important they may be, are only ing example, into that controversial one part of the equation of human political thicket in which substantive happiness within the society. rights for people, because of the The new definitions, which some lethargy of legislative bodies, must so suggest should become formalized often be won. State supreme courts national goals measured by the rela- moved first on equalization of school tively new science of social indica- funding and related property tax tors, go well beyond "just eco- reforms; now they and the Federal nomics." They include such stand- courts are beginning to move beyond ards as undefiled natural environ- schools to broader equalization of ment, clear air and water, health, public services, in one of the least accessible public transportation, recognized but potentially most im- cultural opportunities, and maximum portant developments of our times. opportunity for individual ex- But, once again, the paradox! Prop- pression. erty tax disparities between rich and But there is no unanimity on defini- poor, old and young, from district to tions among the academic and gov- district are staggering. State and ernmental groups which have local tax reforms have slowed to a approached the "quality of life" trickle since Federal revenue sharing. And, ironically, on balance American Federalism: A Paradox of Promise and Performance

subject, and one suspects that if any selves. The answers of the people of definition were officially proclaimed, the Ozark Mountains will not be it would promptly be challenged. We those of the people of the areas have become painfully aware that along Puget Sound; the preferences rather than common happiness, of Atlantans may be distinctly dif- rather severe social strains have ferent from those of Chicagoans - emerged from the so called "prog- and in each area, the definitions, the ress" of our era - the achievement of priorities, may change far more rap- higher standards of living, the spread idly than any Washington level and increasingly high levels of edu- administrator could ever envisage. cation, urbanization and metropoli- People in Maine's Washington tanization, rising technicality and County may be willing to cope with bureaucratization of work, and the high levels of what the rest of us heightened selfawareness and rise would call poverty, if they can be of minority groups. left alone to take their living from the Indeed, each seeming "advance" in sea and the land. One survey in Los our national life seems to bring its Angeles showed that stray animals, own problems with it. Strive as we garbage, and noise were the primary will to carry out the Constitutional concerns of ghetto residents - quite mandate "to . . . promote the general different, one would imagine, from welfare," we are caught in a revolu- the concerns of affluent suburban- tion of rising expectations and re- ites in the Los Angeles basin, but a minded of Schopenhauer's cynical set of problems, with appropriate definition of the two sources of solutions and relative demands on human unhappiness - "not having public resources, far better bargained what you want and having what out in Los Angeles than on the you want." Potomac. If the process of debate in Does federalism have anything to say the natural regions can encompass on this problem? I suggest that it all the social and economic classes, does. Too often, the effort has been and every level from the neighbor- made to suggest national quality of hood on up, then we can approach, life standards for this huge, multi- in part, the problem of alienation by faceted nation - a macrolevel effort giving Americans a renewed feeling that is doomed to failure because it of participation and mastery over fails to take into account that where their own destiny. we live is at the local, the microlevel. It is true that constituent parts of Definitions of the quality of life and government in America today may efforts to use government to enhance not, and in all too many cases do not, them should most properly be the correspond to natural polities - but task of people in the existing com- that is a problem we can try to cir- munities in which they live and cumvent by new political entities, or work, areas that could or should cooperative arrangements among consider themselves natural polities. existing jurisdictions. It does not for In some cases, the natural polity may a moment mean that we should en- be a great metropolitan area; in some trust the national government with cases, a smaller city and its environs; broad power to decide, beyond cer- in the case of some of our more light- tain minimum economic and environ- ly populated regions, substate mental standards, the priorities for regions or entire states. public life to enhance the quality of One can envision a future in which life of Americans living in 50 quite the people of the natural groupings different states, in 267 metropolitan engage in lively and continuous areas, and 3,100 counties spread debate about the qualities of life most from sea to sea. important to them, which qualities they would want public policy to enhance, and which tradeoffs they are willing to accept among them- Is the Federal System Strong when the fiscal shoe begins to pinch. Enough, Resilient Enotigh to Two years ago we had legally ques- Meet the Major Challenges of the tionable impoundments, confound- Present and Future? ing the carefully laid budget plans of states and cities. This year, despite Any decision about quality of life, advance budget briefings for gov- however, has to come with massive, ernors and mayors, subnational gov- seemingly intractable forces in the ernment officials claim they have private and public sector. Remember been presented with a complex ad- that American federalism was origi- ministration economic program that nally designed to deal with the prob- will balloon their energy costs, cut lems of public choice in a rather deeply into the Federal revenue base, primitive agrarian-mercantile society and restrict Federal aid to states and rooted in the individualis tic ethic. localities in a year of continued high Now we have a highly urbanized, inflation. congested, consumer oriented society that has to cope with incredibly big The states and their subdivisions are enterprises - big government, big left, in effect they claim, to pick up business, big unions, each stoutly the pieces, to take on new welfare defending its perceived selfinterest burdens when their own revenues against the lonely individual. are imperiled, to raise taxes or cut This leads me to our penultimate services while Washington cuts taxes test. This is what our conference is to stimulate the economy. Even at all about. I hope you will have some this advanced point in our national answers for me before we are history we lack a mechanism to force through. Washington to consider, before it Consider the compound, global scale acts, the profound impact of its problems we must now cope with, every action on state and local ranging from quadrupled inter- government. national oil prices to roaring infla- That impact, we know, has grown tion and the closest thing to a depres- massively in the last decades. In the sion that the United States, in partic- 1950s, only one out of $10 spent by ular has faced in more than 30 years. state and local governments came Can our country conceivably deal ef- from Washington; now the figure is fectively with these problems without close to one out of every $4. With a degree of centralized authority that that level of interdependence, and will cut deeply into the warp and rapid, unpredictable shifts in Federal woof of our delicate federal system? fiscal policy, we may well ask if the Certainly there is no way that 50 states and localities have any reason- states and 39,000 general local gov- able hope to set their own priorities, ernments, beyond certain conserva- to plan their budgets and programs, tion measures in which they have and to hope to remain accountable already proven their competence, can to their people. begin to deal with an energy short- One answer to this problem of fed- age of worldwide dimensions. Nor is eralism would be closer coordination there any perceivable way that they and consultation between the mem- can play an effective role in formu- ber parts - in administrative policies, lating economic stabilization policy. in fiscal policy, perhaps even one Instead, we see them increasingly at day in formulation of a total public the mercy of a Federal government sector budget or national fiscal which all too often seems to sveak policy for the United States, if that with forked tongue. On the oAe were possible without wiping out on the one hand the last vestiges of state hand, it champions such concepts as and local autonomy or on the other "New Federalism," the devolution of hand the Federal Treasury and fiscal authority, increased block grants, and revenue sharing. But look what system. the same Federal government does American Federalism: A Paradox of Promise and Performance

But alternatively or conjunctively, I If we believe seriously in federalism, think we should start to consider for instance, we should believe in the whether state and local governments primary responsibility of the states, should not begin to think in terms of not Washington, to maintain the reducing rather than increasing their viability of our great cities and urban financial dependence on the central counties. The famous rule of the government, of doing more things on 19th century Iowa Supreme Court their own. Judge John Forrest Dillon, told us Most of us, for instance, have wel- that the governmental subdivisions comed much of the increase in Fed- of states "owe their origins to and eral aid in recent years, particularly derive their powers and rights revenue sharing, on the theory that wholly" from the state legislatures. the demonstrated elasticitv of the Dillon added that "as (the state) Federal income tax, as compared to creates, so may it destroy;" perhaps state and local taxes, made Federal we should add a 20th century cor- help necessary. But we must at least rollary that "as the state controls, so now ask ourselves whether we risk is it responsible." But if that is so, becoming bogus federalists - claim- what are we to say of the magnitude ing all manner of potential in state of Federal aid that bypasses the and local government, but then states and goes directly to the locali- running in good times and bad to ties, often determining so much of Washington for the money, because their fiscal health or illness that their we are unwilling to tax on a state very viability as entities depends on basis for state and local needs. It is Washington, not on the state true that the political graveyards governments? harbor the bones of many state and I am pleased that our final speaker local officials who reformed their tax Saturday will be Daniel Patrick structures, thus improving public Moynihan, the father of the Nixon services and establishing sound and administration's pioneering but ill more progressive revenue structures fated Family Assistance Plan. That for their jurisdictions, only to be plan, which really represented a full retired by angry voters. It is also nationalization of welfare, would true that a number of states have have been a massive step toward moved aggressively to make their tax another imperative of a viable Fed- systems effective and progressive, eral system - namely, the sorting out but about one half continue to be of responsibilities, so that to the regressive, some heavily so. greatest extent possible we know But rather than despairing of the which level of government is respon- task of making all state tax struc- sible for each distinct function of tures as responsive as the Federal, government. Today we face a situa- perhaps we should make action and tion in which each level of govern- education on taxes our first prioritv ment, from local to Federal, has when the current recession tapers become involved in practically every off. A substantial Federal redistribu- non-defense activity of government, tion of tax wealth from energy and from consumer protection to high- food producing states to those less ways to environmental protection. happily situated might be accom- Some overlapping will always be plished, just as Federal policy from necessary, but must the duplication the New Deal onwards transferred be as excessive as it is now? What wealth from wealthy, industrialized rationality is then left in the federal states to the Southern, rural, and less system, and how can citizens pos- developed. But after such redistribu- tion, whv can't the onus be on all the states to tax progressively and effectively, so that they can be more masters of their own houses? sibly know which level they should hold accountable for success or fail- ure in any given policy area? If the energy and fiscal crises of the past year have proven anything, it is that we need a strong, efficient, national government in the United States. That remains, as it has al- ways been, a chief bulwark of our system. But by the same token, it may be that the salvation of the federal system of diffused power and responsibility in America depends not primarily on Washington, but on the states, the cities, and the people themselves. Only if that fact is recognized, if I may paraphrase Chief Justice Chase, once again, can the states remain as indestructible as the Union itself. And only if this is so can federalism grow and flourish into our third century.

Robert E. Merriam has served as Chairman of the Advisory Commis- sion on Intergovernmental Relations since 7969. His past governmental experience includes serving as deputy assistant to President Eisenhower from 1958 to 1961, as deputy direc- tor of the U.S. Bureau of the Budget in 1958 and as an assistant director 1955-1958. He has served as alder- man of the City of Chicago from 194 7 to 1955 and director of that city's Metropolitan Housing Council as well as a member of many citizens' commissions. A native of Chicago, Mr. Merriam was educated at the University of Chicago and is execu- tive vice president of Urban lnvest- ment and Development Co., there. Functions in Flux by Alan K. Campbell Dean, Maxwell School, Syracuse University

New Yorker magazine's community are many signs that the cities are no profiler Calvin Trillin attended last longer the cutting edge of American year's meeting of the National politic^."^ League of Cities. Reporting on that If local government is as boring and meeting he wrote, "Government is ineffective as these commentators boring; politics are occasionally suggest, one cannot help but wonder interesting, but government is almost why so many of us have come to always boring. Reporters often com- Washington from all over the United plain that they cannot write about States to discuss the role of state and an important program - revenue local government in the American sharing for instance - because there federal system. are no people in it."' This question applies with particular After discussing how difficult it is force, it seems to me, to those of us for journalists to make interesting from the academic sihe who devote issues which cannot be personalized, substantial time and effort to study- he again comments on how boring ing the state-local part of the gov- government is, particularly local ernmental system. If that government government. "The fact that govern- and its officials are boring and ment is boring - like, for instance, ineffective, what that suggests about the fact that rodeo bronco busting those of us who research and analvze is dangerous - is naturally an ele- such governmental behavior is a sub- ment in determining the kind of ject I don't care to pursue very far. people it attracts. (So dedicated they Perhaps all of us, government offi- don't mind being bored? So boring cial and student alike, have come to they appear dedicated?) Boredom is Washington to reassure each other also an element in determining the of our importance and usefulness. extent to which ordinary citizens Despite these journalistic interpreta- participate. The citizen who makes it tions of the usefulness and excite- all the way through a hearing on a ment of state and local government, bond referendum on urban develop- the field itself is dominated by fer- ment legislation is likely to be a ment, by change, and by debate. lobbyist. Centralizers and decentralizers call "The fact that local government is each other unflattering names, met- closer to people than state or Federal ropolitan government advocates are government does not make it more regularly denounced by protectors of interesting. Local government is the status quo, those who would mainly a housekeeping operation, move governmental functions from and no one is interested in house- the local to the state level must keeping.'I2 answer the challenge of the "home The New York Times, some weeks rulers." While these debates rage, after the Trillin piece appeared, ran changes do occur; local boundaries a nearly full page story headlined, are shifted, functions are moved "In Big Cities, Realistic Voters in upward and downward, mostly up- This Election Year Are Aware of ward, and the courts issue rulings How Limited Are Mayors' Powers." about the distribution of services It claimed that the public no longer which, if followed, will remake the believes that city governments are map of local government boundaries able to solve city problems. The and powers. efforts to use city hall to satisfy Central to these debates and changes rising expectations, as were made in is the question of which level of the 1960s, have been abandoned. government should do what? I inter- The writer concludes that ". . . there pret my assigned topic, "Functions in Flux," a title that must be pro- 'New Yorker,November 18,1974, page 32. nounced with care, as asking that Zlbid., page 33. same question in different words. 'New York Times, February 18,1975, page 17. 66 In fact, there is no in- The Inconsistent Guidance a need in a unitary system to develop ternally con-sistent theory of Theory an efficient, effective, and responsive assignment of functions to different which can be used to guide Ever since man began designing gov- parts of the system as there is in a either the placement of func- ernmental systems, or thinking about such systems, he has been troubled federal system. One need only look tions or the design of a system to the debates about local govern- by the question of what part of the in which to place those func- ment organization in foreign unitary system should do what. Easy gen- governments to discover the validity eralizations are often used which of this generalization. Within the hide the complexity of the issue. For United States there is a combination example, all government should be of Federal governance--the relation- as close to the people as possible, or ships between the national govern- jurisdictions should be of a size ment and the states - and of unitary which maximizes economies of scale, government - relationship of each or jurisdictions should be large state to its local governments. do enough to capture all externalities. I not believe that pursuing the theo- Just stating these propositions retical underpinnings of federalism demonstrates their simplicity and, provides much guidance to where more importantly, their inconsis- functions in either a federal or uni- tency; each suggests different juris- tary system should be assigned. dictional boundaries or functional assignments. Without theory, however, there can be no consistent guide to action other Accompanying the assumption that than expediency, which produces the logic is well understood of ad arrangements with consequences where functions should be placed or hoc impossible to predict. What, there- what jurisdictional boundaries fore, is the state of theory concern- should encompass, is the commonly ing the assignment of functions in held belief that it is only political a multilevel governmental system? resistance, those currently in power What theory there is comes primarily protecting their power, which stands from political science and economics in the way of the adoption of rational changes. In fact, there is no internal- with a bit contributed by public ly consistent theory which can be administration, planning, sociology, and psychology, but not much; and used to guide either the placement the criteria suggested by all these of functions or the design of a sys- tem in which to place those disciplines provide inconsistent functions. Nor at a more general level do the- The Role of Political Theory ories of federalism offer much help. Political scientists have generally Over the past several decades politi- accepted the proposition that the cians have provided at least three closer government is to the people different slogans to describe Ameri- the more likely it is to be responsive can federalism - Cooperative, to their demands and needs. From Creative, and New - but the differ- this proposition has grown a set of ence in the content of each was ideas which favor so-called "grass never very clear. In fact there is roots democracy." The latest version little evidence that federalism as a of this doctrine is, of course, commu- system necessarily dictates assign- nity control, or, in its rhetorical form, ment or subnational boundary sys- "power to the people." tems different from those in a unitary system. There is as much of Despite the believed selfevident logic of the proposition that the closer government is to the people, (i.e., the smaller the jurisdiction) the more responsive it will be, the evidence is Functions in Flux

hardly convincing. On the average, tal system is assumed more likely to participation in elections in smaller be understood by the voter, thereby units is less than in larger units. That increasing his influence over the ideal of American democracy, the decisions of that system. This ar- New England town meeting, has also rangement precludes the functional been found by recent scholars to fragmentation caused by single pur- have been "elitist" controlled with pose special districts and the geo- relatively little citizen participation. graphic fragmentation associated Another political science doctrine, with many units of local government. which tends to run counter to the Obviously no "right system" prescriptions of the grass roots argu- emerges from these political science ment, favors general government doctrines. In fact, each suggests dif- over single function special district ferent assignment and jurisdictional government. The supporting argu- systems. ment suggests that a more rational allocation of resources among activi- Economic Theory: Equally ties of government is more likely in a Inconsistent system which allows for a compari- The economists, although more son of the relative contribution of dogmatic than their counterparts each activity to the well being of the from other social science disciplines, community. This doctrine rejects the are no less inconsistent in the guid- transplanting of the private market ance provided by their theoretical into the public sector and sees the concepts. There are at least three ballot box as a means of selecting doctrines drawn from economics officials who make resource alloca- which are relevant to the issues of tions decisions rather than allocating appropriate jurisdictional size and resources on the basis of signals functional assignment. These relate generated by individual consumers to externalities, economic efficiency, who purchase goods and services in and technical efficiency. the market. Perhaps central to the question of The special district with its separate what jurisdictions should carry out taxes and/or charges and fees more which functions, and what should be closely approximates the private the size of those jurisdictions is the market. In contrast, general govern- issue of externalities. The spill-ins ment permits, it is argued, the plan- and spill-outs of the benefits and ning and coordination of govern- costs of governmental activities are a mental activities in a way which will well known phenomenon though a better serve communitywide rather very difficult one to measure. The than individual interest. pollution which flows from one The general government doctrine jurisdiction to another, be it water or tends to support large local govern- air, is perhaps the most obvious, but ment jurisdictions since size must be equally important are those resulting great enough to encompass all related from different benefits derived from governmental activities. Many plan- human services. One example would ners as well as political scientists be young people educated in one champion the use of the general jurisdiction who, when moving to government rationale to support another, carry with them the advan- both large scale local government and tages or disadvantages of the edu- the provision of more responsibility cation they received in their home at the state and Federal levels of the governmental system. The political scientist also favors simplicity in both assignment and structure because he believes it aids the voter in making choices. A sim- ple, general, hierarchical governmen- jurisdiction. The ability of small voting with wheels and pocketbooks. governmental units to use their This doctrine obviously suggests a zoning power to zone in desirable system very different than one activities and zone out undesirable which relies on capturing exter- ones creates another kind of exter- nalities. nality. To minimize the flow of ex- Finally, some economists are con- ternalities, a greater number of ac- cerned with technical efficiency or tivities must be assigned to larger what is more frequently called econ- jurisdictions - to metropolitanwide omies of scale. For every activity of ones, to states, and frequently to the government there is an optimum national government. An alternative, scale, and I say "activity" advisedly of course, would be a system of since a function - police, fire, edu- charges back to the jurisdiction cation - is normally made up of which ~roducesnegative externali- quite disparate activities and each ties. The impracticality of such a has its own optimum scale. There- system is selfevident. fore, it is activities to which the con- Pointing to a very different assign- cept of economies of scale must be ment result is the concept of eco- related rather than to functions. A nomic efficiency. In this context, system based upon maximizing eco- economic efficiency relates to the nomies of scale would produce a possibility of the individual opti- different geographical area for each mizing the satisfaction he receives activity of government. Therefore from his consumption of public this doctrine, instead of suggesting a services. The appropriate analogue is government for every person as does the private market - for there the economic efficiency, suggests a gov- individual may purchase that com- ernment for every activity of bination of goods and services which government. maximizes his satisfaction. The Taken together the criteria drawn larger the population of a govern- from political science and economics mental jurisdiction, the more likely it provide little consistent guidance for is that the people within that juris- drawing governmental boundaries or diction will be heterogeneous in assigning functions among the levels taste. The particular package of of government. Since the criteria services provided by such a jurisdic- themselves often point in contrary tion is unlikely therefore to fit the directions, it is only through trade- desired package for any but a very offs of advantages and disadvantages few residents. Since smaller iuris- that they can be combined in a way dictions are likely to possess more which will provide direction for the homogeneous populations, it follows placement of functions or the struc- that the package of services provided turing of the governmental system. will more nearly fit their preferences The "grass roots" criterion of politi- for public services. Carried to its cal scientists and the economic effi- logical conclusion the concept of ciency guidelines of economists sug- economic efficiency suggests a gov- gest small units of local government ernment for each person - every encompassing relatively homoge- man a king! neous populations with authority A body oniterature has grown from over a wide range of services. In con- this doctrine which generally sup- trast, the general government guide- ports the current fragmented govern- line, the control of externalities, and mental system. The resulting large simplicity in structure suggest large number of governments, it is argued, units of local government combined makes it possible for more people to with assignment of substantial find a jurisdiction which provides responsibility to the higher levels of a basket of public services which fits government - to state and federal their tastes. Thus, voting is done governments. The economy of scale with one's feet rather than at the polling place. Actually it means Functions in Flux

criterion leads to functional frag- public finance scholars. Their find- &'hereis a criterion, not mentation with a government for ings, although differing in detail, yet mentioned, which in my each activity of such size as to have generally argued that the cur- judgment should have priority minimize cost. rent system abounds with disparities over all the others. It is the - disparities in both tax burdens and criterion of equity. Equity: The Overriding Criterion? services, as measured by differences Combining these criteria is no easy in expenditures - disparities between task unless it is assumed they central cities and subirbs, between possess different priorities. If they low and high income suburbs, be- could be ranged from most to least tween metropolitan and rural areas, important, they could be made opera- and among regions. tive - but not, of course, without The prescriptions which have difficulty because of measurement emerged from disparities analyses problems. Yet there seems no "objec- call for larger scale local governments tive" means for such a ranking; it in order to incorporate in such gov- would have to be subjective. In the ernmental areas an economic base end, such choices are value laden. which captures both the growing and Since choice must be based on declining portions of that base. It values, there is a criterion, not yet further suggests a distribution of mentioned, which in my judgment expenditures which relates services should have priority over all the to needs. others. It is the criterion of equity. Also emerging from the disparities Its use assumes that there is a sharp literature have been suggestions distinction between the public and about the flow of governmental aid, private sectors of the economy, that suggesting that that flow should be is, the public sector benefits should in the direction of those governmen- be more directly based on need tal jurisdictions with weak tax bases rather than on what each individual's and containing populations with pocketbook permits him to acquire. substantial need. Finally, it has also Whether it be education services, been suggested that to overcome police protection, sanitation services, disparities it may be necessary to or any other public service, the move some functions to higher gov- amount received of the total available ernmental levels, transferring such should be related to the need for that activities as welfare, education, service. Such equity should relate to health, and hospitals to various both interpersonal and interjuris- points in the upper reaches of the dictional distribution of the services. governmental system - metropoli- Most scholars have shied away from tan, state, or Federal levels. use of this criterion because of its The shifting of functions or parts of obvious value content - it is not sci- functions or their financing is being entific. Although the selection of the more actively pursued today than is equity criterion as possessing highest the restructuring of local govern- authority is not scientific, the meas- ment, probably because the ~olitical urement of whether a system is, in resistance is less. The defense of fact, equitable can be objectively local "home rule" is apparently determined assuming agreement taking a backseat to the meeting of can be reached on definitions. the public pay roll. One area of research, fiscal dispari- The equity gains accomplished by ties, does ask one version of the such transfers are not easily meas- equity question. It is a field which ured. The nature of the tax system has been well plowed by the Ad- from which, and to which, the func- visory Commission on Intergovern- mental Relations and by many tion is being transferred, as well as In some states, the efforts, some suc- changing expenditure patterns must cessful, to transfer all or a large por- be taken into account. Such meas- tion of the financing of education, urement, however, is not impossible. often court dictated, may produce a If the equity criterion is accepted as revenue and expenditure system the one which ought to be dominant, which more closelv accords with then the other criteria can be used to equity for both financing and spend- the degree they are not inconsistent ing, but not necessarily. For example, with it. the transfer of school financing can The equity criterion suggests that the result in large city residents finding financing of public services should their taxes for the support of schools encompass a tax base that includes higher without a similar increase in all interdependent economic activi- expenditures. ties. At the broadest that suggests Further. some recent moves at the more national financing of state and local level to create regional- iurisdic- local services than now exists but tions with genuine power - Jackson- leaves substantial opportunities for ville, Indianapolis, Minneapolis- statewide and areawide financing. St. Paul, to name but three - will Equity on the expenditure side sug- result in greater equity in the fi- gests fitting as well as possible the nancing of services. Decentralization provision of services to needs. Ob- efforts - schools in New York City, viously the scale here could be much minigovernments in Indianapolis - smaller than that required for fiscal will, if successful, provide the oppor- equity. For service delivery the "grass tunity for improving the relationship roots" and economic efficiency cri- between the package of services pro- terion can be fitted to the equity vided and the felt needs of people criterion without difficulty. Such a within each jurisdiction. combination does portend a set of The Politics of Change increasingly complex intergovern- mental relations - an outcome, I The number of changes, however, believe to be inevitable if the system are small. The status quo has great is to maximize fairness and citizen ability to protect itself. Is there hope participation. for reform? On the whole, political science research suggests that the Current Efforts current system is more than able to To what extent are current reassign- protect itself. Officeholders even in ment and restructuring activities con- organizations nearly bankrupt - the sistent with the equity principle? Penn Central Railroad, for example - They are a mixed bag. Some move in will fight to maintain their positions the equity direction while others do because that bankruptcy does not not. The policies of the Federal gov- lessen the "goodies" which the sys- ernment, for example, push in incon- tem provides them. Some office- sistent directions. The regional plan- hold'ers in nearly bankrupt central ning requirements of some programs cities will fight to maintain the so- are to some extent consistent with the called integrity of their jurisdiction equity criterion. Other requirements, despite its inability to provide the however, actually reinforce the in- services needed by its residents. The equities of the system. The revenue literature has named this behavior sharing program, for example, with "capturing the hollow prize." The its "need and effort" formula does prize may be hollow for city residents help offset slightly disparities but who need better services and a simultaneously acts to protect the lessened tax burden, but it not so for current jurisdictional system of local those who capture political positions government. in the system. My guess is that both restructuring and reassignment of functions will occur at a snail's pace if the initiative Functions in Flux

must come from those now holding those communities, it would have office or from others (e.g., real estate been defeated. It is now equally interests) who benefit from frag- clear that if the current systems were mentation. to be placed on referendum in those Des~itethis inevitable resistance to same communities the new system change, it is encouraging to find one would be upheld by the local citi- group of local public officials who zenry. Democracy does not imply recognize their need for help in that leadership should be abdicated accomplishing certain kinds of by those who have moral, legal, and changes.- The International Citv constitutional responsibilities for Management Association adopted a maximizing the effectiveness and the resolution at its 1973 conference equity of the system. which said, in part, "The members Perhaps all of this is boring to our of the International City Manage- journalist friends. If so, I only ask ment Association believe that Federal compared to what? assistance should usually be in the form of a block grant, however, Alan K. Campbell, dean of the categorical grants are desirable Maxwell School of Citizenship and when national priorities are at stake Public Affairs, Syracuse University, and state, local, or private funding received his Ph. D. in Political Econ- is scarce or unavailable; or when the omy and Government from Harvard problems or matters being addressed University. He serves on the Re- occur only in a relatively small num- search Advisory Board of the Com- ber of communities or when" - and mittee for Economic Development, this I think is the significant clause the Panel on Metropolitan Gover- - "the political risks are too high for nance of the National Academy of responsive local or state governments Public Administration, and is presi- to bear." dent-elect of the National Associa- Leadership for change must come in tion of Schools of Public Affairs and part from outside the local govern- Administration. His most recent ment system. There would not have book is entitled Taxes, Expenditures been reform of local government in and the Economic Base: Case Study Canada had it not been for the cen- of New York City, (with Roy Bahl tral role played by the Ontario and David Greytak) 1974. A book provincial government, nor would scheduled for publication later this there have been local government year is entitled, State and Local reform in Great Britain without the Government: The Political Economy leadership of the national govern- of Reform (edited with Roy Bahl). ment. I doubt, too, that there would have been reform in Indianapolis or in Minneapolis-St. Paul without state leadership. Nor is it undemocratic to suggest that higher levels of government par- ticipate in reforming local govern- ment. The evidence is strong that had the reorganization of either Toronto or London been put to referendum in State Modernization By Daniel J. Evans Today Governor of Washington

If someone were to ask me to de- cials would be totally outside the scribe the state of American fed- bounds of direct accountability. I do eralism, I would have to relate it to a not know how many people really large American family. Sometimes understand the full potential in that members of a family squabble, al- act - or those like it - which could though they love each other. Some of eventually lead us to a time when what they do doesn't appear to be elected officials will be dealing less very organized and sometimes it is and less with the direction and man- messy and inefficient. But generally, agement of public monies. Account- at least in most large American ability is a very important part of families, it somehow works. And what a federal system ought to pro- that's probably a pretty good vide and what a system of repre- description of American federalism sentative government ought to be. today. I said that perhaps our methods are a Rather than beginning with the little messy today, and that our gov- standard lines on innovations and ernments are not put together in new ideas, I would like to launch packages as neat as we might like this speech with a bit of heresy. The them, but I also suggest that by and trend over the last few years has large they are more effective than been to deal with governmental most people think; more effective organization and reorganization by even than most students of govern- taking a good look at regional gov- ment are willing to admit. We are ernments, or councils of government, not going to get the most effective as effective methods of governmental government and the most effective organization. Over the past few federal system if we cease to recog- months I have started to wonder nize what federalism really is. And whether our attempts to make such in an attempt to mandate uniformity, neat packages out of government are I believe we weaken the whole con- really worthwhile. Perhaps we should cept of a federal system. make an effort to determine what I have been deeply concerned over government is all about and what we the years with the growing inter- are trying to accomplish with it. dependence of Federal, state, and Instead of dealing so much with local governments, particularly structure, perhais we ought to deal through the categorical grant pro- more with performance or the ac- grams which have proliferated for tuality of governmental respon- the past couple of decades. At last sibility. count there were 1,500 categorical I am also a little concerned about the grants in operation and the number problem of accountability. A council is going up, when the trend should of governments is fine to assume be going in exactly the opposite some responsibility, but it is one step direction. We are getting to a point removed from the direct rela tionship now where we are building one of of people to their elected representa- the most expensive welfare systems tives. And I am worried about mov- in the whole countrv with our own ing away from the accountability for grants. The high auditors, actions. I am also deeply concerned managers, and paper shufflers re- with recent Federal actions, especially quired for many of our programs are in passage of a new health planning so expensive that we are taking act late last year, which could move money away from the supposed us into a situation where large ultimate beneficiaries of the program. amounts of public money would be The Importance of Revenue Sharing guided and directed by councils made up of a majority of non-elected offi- The expense and trouble involved cials. Under such laws. elected offi- with categorical grants are only a few reasons I see revenue sharing as an essential part of an effective federal system. Although the Federal gov- ernment only recently discovered can only be gained ultimately by per- LL We are not going to get revenue sharing, states and their formance. But trust is a very impor- the most effective government local communities have shared rev- tant ingredient if we are ever going and the most effeche federal enues for years. In my own state, we to use our tax money wisely and system if we cease to recognize have a number of tax sources where efficiently. what federalism really is. And money is shared with local communi- Revenue sharing is a measure of in an attempt to mandate uni- ties with no requirements, no report- trust. So is the lack of categorization. formity, I believe we weaken ing, no mandate whatsoever from the The willingness of one branch of the whole concept of a federal state level, other than that the local government to give responsibility to government follows the general laws another is a measure of trust. Gov- and constitution of the state. That's ernment at all levels should have what revenue sharing is all about. more performance standards to op- There are simply some levels of gov- erate under and fewer requirements ernment more effective at collecting concerning how they reach those taxes than others, but that does not standards. We are so interested in mean that those levels of government form that we forget all about sub- should spend or manage all of that stance. I think it's time we turned tax money. that trend around. There is a real question in my mind Another very important ingredient in whether the Congress will continue making federalism really work, given general revenue sharing - at least in the flexibility and the trust, is legis- the terms I believe describe revenue lative responsibility for oversight. sharing. I certainly hope that they Congress, the various state legisla- not only continue the program but tures, and a good many city and make it stronger. At the same time, county councils spend so much time I would like to dismantle at least the devoting their energies to new laws number of categorical grants we and regulations and ordinances that have. they never look back to see what Some people ask me what I would do they have done in the past or to see at the Federal level given the budg- whether it works or not, or whether etary crunch the President and the it works well enough. I have told my Congress face. How can I get or ask own legislature a number of times for more programs considering the not to attempt to equalize the legisla- deficits that are occurring, they ask. tive and executive branches by tear- My answer is that we can do with ing down the executive but instead to less money in many areas and give build up the legislative branch. I more service in those same areas if would join them in asking for what- Congress will just do one thing: ever is necessary for legislative over- when they reduce the money, they sight capability to tell us whether we should reduce the requirements for truly are executing the laws wisely reporting and categorization and give and whether we are living up to us more flexibility. legislative intent. Regaining Trust in Government Need for Increased Productivity And that comes to a second funda- The needs for today and the innova- mental principle - how to somehow tions which I believe are springing regain a measure of trust in govern- up all over this nation relate to pro- ment: trust between a legislative and ductivity. When you come right an executive branch at any level; down to it, the only chance we have trust between the various levels of to moderate inflation in this country government; trust between citizens and their government itself. These things are not easy to achieve and and at the same time increase the There wasn't a cheery note in the potential standard of living of our whole thing until he got to the very citizens is through productivity in last sentence - the most important - both the private and governmental in which he said, "Thank you gov- sectors. We have attempted to move ernor, for the opportunity to express forward in this field in our own myself." That is what is so wrong state, and many other states and today as expressed in the last election local communities are doing likewise. where only 38 percent of the people We are finding that results are rather in this country voted. Literally one easy to obtain particularly if you out of every three voted. The rest bring into the whole process those rejected participation in a free system who work in those levels of govern- such as ours because they did not ment. think their vote or their participation In an attempt to gain some insight made a difference. The opportunity into citizen trust, in Washington, we to express yourself is a very impor- started a program called "Alterna- tant thing to reachieve if we can. tives for Washington." The program I have not spoken much about the began with a task force of 150 peo- specific innovations, many of which ple from all walks of life and various are current in all levels of govern- parts of the state. We asked of them ment. I will list three or four, how- only one thing: a considerable ever, and give you a reference to amount of their time. In four, three many more. day sessions over a couple of Open government is an impor- months, they were asked to look tant prelude to citizens' trust. ahead for at least ten years and de- Sunshine laws and open gov- scribe some alternative choices for ernment laws have been passed our state. They did that, and also in in most states of this nation the process, became some of the most now and they far preceded the articulate spokesmen and most de- concerns and bills now in front voted citizens to making government of Congress at the national and the federal system work that you level. could ever find. They have trans- Regional and intergovernmen- mitted this enthusiasm to regional tal cooperation is proceeding in groups across the state and have a wide variety of forms. I men- given every citizen the opportunity tioned some of the messiness to express his preference in a ques- of our governmental structure, tionnaire inserted into every daily earlier, but I see something rela- newspaper in the state. More than tively new which may be a 60,000 persons responded to the 11 hopeful sight: that we are doing basic alternatives laid out by the more and more things simply on committee and thousands sent indi- ar. ad hoc basis. We find the vidual letters amplifying material on problem, we devise a temporary the form. combination or collection of One letter in particular dealt with the intergovernmental groups to whole question of trust and par- deal with the problems, and then ticipation of citizens in government. they dissolve instead of creating The writer said he thought our ques- a permanent framework which tionnaire was unanswerable and far outlives its usefulness. wrong and he didn't like it. He didn't Budget building is more and like much of what was going on in more sophisticated. I believe that government, he said. He thought we most of the state legislatures in spent too much money and so on. this country have a more ration- al budget system than the Con- gress itself. Most states have a requirement for a single budget State Modernization Today

allowing legislators to look at there is no easy measuring stick. 66 Trust and confidence-- the budget in total, to compare But I believe it is important for government to government that budget against revenues, us to devise those measuring and citizen to government- and to have some relationships sticks that people both outside are essential to the health of between them clearly in mind and inside of government can our federal system and perhaps when the decisions are made. In relate to. Over the years, we can represent an important future our own legislature, for exam- then have a better way of telling ple, our budget department has whether we are gaining or innovation. created a very sophisticated losing against these measuring computerized system for gather- sticks in government. ing budgetary information. And So in summary, trust and confidence rather than keeping it to our- government to government and selves and competing with the - citizen to government are essential legislature, we have turned that - to the health of our federal system information over to that body. They in turn have developed a and perhaps represent an important future innovation. Citizen participa- computerized "what if" system by which they can plug in al- tion in the process is an important most any kind of change in a part of this innovation but not just when their own interests are in- budget and get back the effect that change will have on the volved, but when others are at stake whole budget picture. They as well. Citizens ought to be par- have given that system back to ticipating in government as regularly the executive branch so we are as they get up in the morning and go to work. In addition, government much closer together now in must retain the flexibility to recog- information. We are working from the same base. and the nize the differences nationally and within our own states and localities arguments between us at least come from the same furidamen- and must be given an opportunity to efficiently respond. tal information. And decisions now are made on issues rather I have to give you just one commer- than on misinforma tion. cial. Last year for the first time the There is a need to establish National Governors' Conference measuring devices for better pro- produced a book entitled Innova- ductivity and better results in tions in State Govertiment contain- government. We have only ing articles from each of the nation's scratched the surface in this 50 governors. I recommend it to you. area, but I think that this could I think there are many innovations. be one of the most important I believe the federal system is alive innovations or achievements for and well and working and will be so government at all levels in the even to a higher degree when we next few years. It is easy to celebrate our 200th birthday a year measure the effectiveness of a from now. large business. A corporation building airplanes, for instance, Daniel J. Evans was first elected can keep intricate cost control governor of the state of Washington information to indicate when in 1965. In 1972, he was elected to they have made a profit or suf- his third consecutive term. Prior to fered a loss. It is a pretty good that time he served in the Washing- measure of efficiency and ton state legislature from 1956-64, achievement for business. It is serving as floor leader during the last not so easy for a government to four years. He is past chairman of measure the effectiveness of the National Governors' Conference education, or the effectiveness of and has served on the Advisory a welfare system, or the effec- Commission on Intergovernmental tiveness of so manv of the Relations since 1972. services we provide for which Local Government By Richard G. Lugar Modernization Mayor of Indianapolis

Modernizers and reformers of tions, distort local finances, and then municipal government must ap- lock in many of the undesirable proach each opportunity with seem- results. ingly boundless enthusiasm, moral County governments often suffer the fervor, and careful definition of the same fate as cities at the hands of grounds on which they expect to Federal and state governments even win. The deck is stacked against though state constitutions give municipal modernization because counties somewhat more legitimacy. most cities and towns are creatures of The "new county" program of the state governments, and most have National Association of Counties distinctly separate governments from is a natural ally with some of us the counties which surround, con- who have proposed city-county con- tain, and often duplicate municipal solidation for the large cities of this services. Federal guidelines intrude country. County reform is the best into almost every function of munici- hope of many small cities and towns pal organization, and neighborhoods which might gain substantial benefits within municipalities often demand from such reorganization. recognition and sometimes a consid- The past 15 years have been alive erable degree of autonomy. with innovation and reorganization. The local reformer must be an ally Many cities of small and medium with the state government reformer sized~populationshave annexed if only to gain permission to pursue enough territory to encompass about local modernization. In the best of 3-million citizens within new worlds, state governments would be borders. Five substantial city-county sufficiently concerned about locali- consolidations have occurred in ties to provide more reasonable or- Nashville-Davidson County, Ten- ganizational statutes and a clear flow nessee; Jacksonville-Duval County, of authority and money in order that Florida; Indianapolis-Marion Coun- state government might produce a ty, Indiana; Columbus-Muskogee well woven governmental blanket County, Georgia; and Lexington- rather than a torn and fragmented Fayette County, Kentucky. Of more cloth. significance to a wider circle of From the standpoint of both Federal munici~alities,functional consolida- and state governments, it is taken for tion has occurred in a legion of granted that police and fire protec- places with burgeoning numbers of tion, sanitary services, street repair, special service districts crossing lines public health services, parks, and of general purpose governments and some environmental concerns will be of ten dwarfing the remaining general provided at local governmental levels. purpose entities as monies, respon- Most states do not allow cities and sibilities, and voter allegiances fol- towns to name the tax mix which lowed desire to expand and perfect might be employed to provide neces- the enthusiasm for new services. sary revenues. Most states do little to Environmental and transportation assist the process by which logical planning have triggered multijuris- boundaries of responsibility might be dictional cooperation. Disposal of established for the rendering of serv- refuse, garbage, and sewage has ices. In fact, most states maintain a become more complex and fostered heavy bias against innovative fi- innovative restructuring. School nancing or rearrangment of lines and district mergers have led to substan- boundaries at the local level. Federal tial decreases in educational govern- policies through generous funding mental units, but a similar decrease of local vested interests have often has not been noted in law enforce- served to fragment service jurisdic- ment units. At the Federal level, a few categorical grant-in-aid programs have been consolidated. The ten regional coun- cils of Federal officials have offered regional governments often blurs the GGThe past 15 years have better channels'of coordinated com- much more vital steps of local merger been alivhwith innovation and munication for Federal, state, and and consolidation and serves to reorganization. local officials. Such innovations as freeze the old boundaries into place. joint funding applications which Frequently, the local government re- allow governments to help consoli- former has a strong suspicion that date Federal efforts on the local level Federal and state legislators have and the chief executive review and fears of alienating local constituents comment process which enforces the who oppose merger or consolidation desirabilitv of local comment on each and thus adopt a pattern of flight proposed Federal activity have en- high above the battleground by sug- joyed limited but effective reform gesting new governmental forms results for those communities fortu- which are non-elected, reasonably nate enough to exercise these new distant from voter understanding and opportunities. observation, and generally frus- As citizens view all of this regroup- trating to lasting municipal reform ing, many believe that the reform while giving the impression of new trend is sound and certain, but many idealistic breakthroughs in co- scholars of federalism are not so operation. confident. I want to highlight some The United States Congress, the of the grounds for concern and ACIR, and a host of private research indicate potential remedies. groups are monitoring general rev- The growth of regional governments enue sharing, a concept which has, stimulated by Federal guideline re- in fact, led to strengthened financial quirements often results in additional positions of most state and local governmental officials who are not governments and led to a remark- elected bv local voters and who exer- able new burst of overall interest in cise considerable authority over a the concept of federalism. variety of special service jurisdictions Some Congressmen retain a strong which are difficult to coordinate in suspicion that the Congress could any general governmental manner. spend the money with better results Thus, the municipal official who is than local officeholders. Congress elected must now confront not only has mandated how seven out of the Federal guidelines and officials, every eight dollars returned to state the state governmental apparatus, and local governments must be spent the elected countv and township and tries to enforce those guidelines officials, but non-elected regioial with uneven success. officials as a growing tier of govern- Unfortunately, the Congress ment spawned by Federal legislation demonstrates~atraaic disinterest in and state attempts to comply with the difficulties creited by past cate- guidelines. gorical grant activity on the life and Secondly, much Federal legislation health of cities. in the area of governmental reorgani- The National League of Cities and zation offers few incentives for United States Conference of Mavors municipal modernization and reform. have documented the national dilem- For example, the general revenue mas of uncoordinated highway and sharing legisla tion supports thou- housing grants which have served to sands of local governments which weaken local general governments, offer few general governmental serv- waste resources, and render the cur- ices and thus inhibits general govern- rent housing and energy goals of the mental consolidation. The push for country much more difficult to achieve. Recently, the Congress produced ruinous legislation including state and local government employees in the 1974 National Fair Labor Stand- The questions raised about general ards Act despite concerted testimony revenue sharing get to the heart of that fire and police protection would the Federal-local relationship prob- be prohibitively expensive and that lems in this country. Within local severe cutbacks in service would be a jurisdictions, racial, ethnic, religious, result for many cities who actually professional, and cultural minorities need more public safety. petition the Federal government to If the current session of Congress rifle shot legal and financial support proceeds to passage of a federal which these groups may believe is employee bargaining act, the results unlikely to come from the governing for local governments everywhere democratic majority in a specific will be severe. locality. General revenue sharing monies are usually appropriated in Financial Restraints on the same manner as any other rev- Local Governments enues, but many local constituent Local governments have no way to groups have been more accustomed raise the sums of money mandated to a direct appeal to Congress and a by a Congress from afar that does direct response in the form of Federal not send along sufficient cash to bureaucracy based locally and ear- fulfill its dictates. The pleasures of marked funds. The key question re- legislating must be balanced by the mains, "How fair and how just will pains of taking time to understand the local majority be to local mi- enormous and expensive implica- norities?" So long as local majorities tions and paying the costs created. are insensitive to local minority needs Inevitably after a financial crisis hits or Federal administrators and legisla- New York City or another conspicu- tors assume insensitivity and demand ous national media center, demands construction and retention of parallel are made for individual attention and local governments operating inde- subsidy by the Congress. Govern- pendently within normally locally mental employee militancy, distorted elected local governments, Federal- welfare payment burdens, and lack local relationships will exhibit mutual of local political clout combine to antagonisms and conspicuous de- heighten disaster and uncertainty. ficiencies in waste of taxpayer re- sources. New York City becomes ungovern- able principally because its own citi- A good case can be made that the zens and their elected officials are quality of local government has im- precluded from taking the necessary proved, that minority interests are remedial measures by Federal and being recognized, that services can state mandates which may require be delivered more effectively at the action which is counterproductive local level than by Federal outposts, until outside subsidies are raised to and that Congress must exhibit a maintain all of the inefficiencies reasonable leap of faith with one in place. dollar out of eight in state and local support. In truth, no amount of Fed- Congress has even imposed loose eral program reform will make head- guidelines for the general revenue way without strong municipal sup- sharing money and maintained ab- port in the administration of the normal curiosity about those dollars program, and it is in the best inter- even though almost $40-billion of categorical grants is dispensed to the states and localities with a minimum of interest or knowledge by citizens anywhere. Local Government Modernization

ests of Federal and state governments innercity jurisdiction with the politi- to make certain that municipalities cal clout that such a percentage are given the potential strength to might enforce. uphold their part of the Federal sys- I have raised these auestions about tem obligation of services to actual Indianapolis innovation because I citizens. believe that common dilemmas face City-County Consolidation most municipal innovations, and by adopting a more parochial self- It is difficult for observers of the critique, I will not disturb the efforts local scene to follow the logic or of reformers elsewhere. assess the strength of reformation. City-county consolidation is not Reconstructed municipalities do not necessarilv a wave of the future nor bear a resemblance to Federal, state, a relic of past dreams. It has been or county entities. For example, useful fo; Indianapolis because it led critics of city-county consolidation in to an extraordinary surge in new Indianapolis often note that schools building, new outside investment are not melded with civil government, capital, a sharp rise in per capita that city and county police are not earnings, and a sharp decrease in the merged, that volunteer fire depart- number of citizens with incomes ments flourish, and that the health below the poverty level. Big league and hospital corporation, the airport sports, much more entertainment, authority, and the capital improve- new hotels, the building of the ments board are tied into the overall convention center desired for local general government only by decades, and rejuvenation of inner- board appointments. The seven con- citv retail sales in addition to sub- stitutionally mandated county offi- urban retail vrosperitv all occurred cials are tied in only through the ..< in a five year span following the power of the purse exercised by the Uni-Gov Act of 1969. city-county council. Also undeniable and vitally impor- Many critics have questioned why tant was a greater sense of racial the reformed Indianapolis govern- cooperation accompanied by fair em- ment remains "non-unified," and ployment and fair housing ordi- they question when it is likely that all nances now enforced countywide and of the parts will be put together to a new esprit de corps of many complete the supposed optimum citizens looking for greatness and framework. Others have questioned excellence in a city. whether the unity achieved actually provides more efficient services than The general government consolida- smaller jurisdictions might have pro- tion followed countywide reorganiza- vided in some specific instances and tion over a 17 year period of parks, whether neighborhood government public health, transportation, plan- might be a better answer to the needs ning and zoning, and a host of for local responsiveness than a city- earlier special service district reforms. state of 800,000 citizens inhabiting It did not include schools nor did it 380 square miles with 40 per cent of proceed to a countywide police de- that territory under cultivation by partment or fire department because productive farmers of the new a large majority of citizens did not Indianapolis. Black citizens continue want such provisions. In fact, public to debate whether they are better off education is probably stronger in 11 with 18 percent representation in a large school corporations and fire countywide government which has fighting is considerably more effi- increased its property tax base by cient in the current status of profes- over a third in seven years or with a sional and volunteer groups covering 25-30 percent of the population of a large territory in cooperation. a less dynamic former intercity gov- ernment and possible control of the local Democratic party within the 66 Strong leadership has Leadership and Citizen Support city-county consolidation or various forms of regional government are been of the essence whether Strong leadership has been of the discussed is the fact that citizen municipal modernization in- essence whether municipal mod- movement is often characterized as valved a single purpose district ernization involved a single purpose a desire for better housing, more mer er or an areawide um- district merger or an areawide um- land, more room, and better services. brel Ha organization. brella organization. Frequently, the At the heart of such movement is leadership elements have included a very strong fear of criminal attack. concerted Chamber of Commerce The fear of crime unfortunately, is effort, strong support by the League well founded in many cent~alcities. of Women Voters or other govern- The crime problem, as various LEAA mental study groups, the formation studies have documented, involves of specific reform organizations, and many young men, and the odds of a in the most effective instances, the black citizen being either the criminal direct efforts of political parties or the victim are high. The flight by linking elective officials in municipal, white families and black families county, and state governments. who had the option of mobility has The leadership must have staying left many helpless and less affluent power. Few elected officials will have white and black citizens in a no tenure long enough to remain man's land of urban disaster in many through the length and breadth of cities. community awareness, education, On top of this, Federal courts con- debate, decision, and implementation tinue to mandate racial balance in of substantial modernization. Ideally, public schools which have been one wave of citizen reformers suc- rocked by many other hardships and ceeds another and picks up the re- are unlikely to improve on the basis form momentum without too many of racial balance or imbalance until succeeding intervals of reaction, neighborhoods around the schools reeducation, and weary retreat in the and patrons of the schools have face of Federal, state, regional, and much more going for them. other local opposition. Citizens who are caught up in fear of But modernization has succeeded crime with reinforcement of fears only when an obvious majority of created by schemes of racial balance citizens involved wanted it to suc- are not good prospects for unified or ceed. The most important moderniza- modernized government. Until the tion occurs when the general will for crime rate is reduced substantially in unity exceeds even by a small margin most cities and the era of racial bal- the deeply held feelings of many ance by the numbers comes to a citizens for divisiveness. close, the subject of municipal mod- Unity movements have taken a beat- ernization will be largely an internal ing more often than not because of shoring up of deficiencies and oc- fear that government might be less casional functional service adven- responsive, might cost more, or tures which do not involve much risk become too ambitious with its new of racial discord and which do not potentialities and thus raise more involve schools or police powers. taxes. Despite the usual campaign The Uni-Gov reform in Indianapolis platform calling for more home rule which did not touch the school cor- or demanding that Federal or state porations has led to a building boom officials should "leave us alone," in the central city and the provision actual proposals that would give of more tax base behind each inner more power to wield authority and to city school child than in any of the tax at the local level are usually ten suburban systems save one. defeated as a majority of citizens genuinely fear the results of the home rule which sounded much better in the abstract. Of even greater consequence as Local Government Modernization

As a practical political matter, the which surpass the abilities of most Indiana legislature of 1969 would local officials to have time to read, not have passed a bill to unify but how tough and how genuinely Indianapolis and Marion County significant it is to obtain a favorable civil governments if school consoli- vote for a change in a crowded meet- dation had been a part of the plan, ing hall amidst cheers and jeers and and only Indiana state government threats of individual economic and can provide for the unifying of any physical retaliation that can be governments, general or special understood immediately. service in Indiana. The prospects and procedures of In the scope of these comments, I municipal modernization need to be will not support a number of broad understood by all who are to make a assertions with the argumentation significant contribution to stronger necessary for more scholarly pursuit, cities at any level of policy making. but I am contending that the general Victory comes hard and it often takes problem of criminal activity blocks an agonizing amount of time, but the door of much serious reform ac- there will not be ultimate victories tivity. To the extent that the crime for so called national policies of problem becomes entangled with public safety, public health, environ- racial dilemmas and public school mental cleanup, and the standards of racial balance questions, the munici- public education required in a so- pal reformer must become a miracle phisticated democracy until local worker. The old problems of tax dif- governments have the appropriate ferentials which used to divide city organizational structures, sufficiently dweller and farmer in discussion of talented personnel, and adequate school or civil consolidations may funding to perform the tasks which still prove to be tough for many the rest of the nation, as a whole, citizens to surmount, but those dif- deems essential. ficulties pale before the pathos of larger city and larger suburban coun- Richard G. Lugar first became active ty struggles with race, crime, and in city politics in 1964 when he was school busing. elected to membership on the Indi- Because the stakes are high- and the anapolis Board of School Commis- mountains steep, the adventure of sioners. He served as that board's reform at the local level is all the vice president in 1965 and in 1967 more inviting for citizens who are was elected mayor of the city of truly serious about making a dif- Indianapolis. He was reelected to that ference in the human condition. office in 1971. He is past president of Local reform is the toughest political the National League of Cities, a mem- effort of all. Insulated by miles of ber of the Advisory Council of the distance and a retinue of able staff, U.S. Conference of Mayors and a the Federal administrator or legisla- member of the board of directors of tor advocating even the most cour- the National Association of ageous of pronouncements is not in Counties. He is currently vice chair- the same ball park with the profiles man of the Advisory Commission on in courage- at local street corners and Intergovernmental Relations. church basements where face-to-face contact and the bruising scuffles involved in persuading neighbors takes more stamina, more patience, more courage, and.a deep reservoir of optimism and good will. How easy it is to issue guidelines from afar and publish endless rules County Modernization By Conrad M. Fowler in the U.S. Probate Judge, Shelby County, Alabama

In the beginning, our forebears or- units. A policy making body and a ganized the states; the states created chief executive officer - instantly counties, authorized the formation of recognizable throughout the land municipalities, and joined together to today as the city council and the form the union. The counties and mayor-were provided. the municipalities derived their struc- tures and powers from the states. Present Pressures and Reforms The states needed a local unit to con- So long as the counties remained duct elections, provide schools, rural and sparsely populated, county assess and collect taxes, hold court, government functioned adequately. build rural roads, police rural areas, Yet, in due time, the spread of the and care for the poor. These func- population into the unincorporated tions were assigned to the counties. suburbs, along with the accompany- The population of the counties out- ing demand for municipal services, side municipal areas was sparse, and brought the need for county mod- in the main, selfsufficient. There was ernization to the forefront. Counties little need to give counties authority with 18th century governmental to deliver local type services, adopt structures and authority cannot ordinances, or levy taxes - other supply the needs of suburban citi- than those authorized by general zens in 1975. Nor can they meet the state laws. After all, the legislature current areawide needs of citizens met every two years, and county in both their incorporated and un- leaders could always petition for incorporated areas. additional authority. A modernization trend in county The counties were provided neither a government accelerated in the 1950s, legislative body nor a chief executive continued in the 1960s and is pro- officer with power to appoint depart- ceeding with some vigor in the ment heads, accountable for the day- 1970s. How are counties modern- by-day operations. County respon- ized? You begin with state constitu- sibility was fragmented among sep- tional changes and by general legisla- arately elected assessors, collectors, tion providing for charter adoption court clerks, sheriffs, county com- or for optional forms of govern- missioners, treasurers, and others. ment. These modifications generally Even today, county government result in granting legislative power across the nation is so varied in to the county governing body, except name, structure, and function that as limited by the state constitution, no one designation can be used to the general laws of the state, or the identify county officials or county county charter. They usually lead to government without need for further a change in the structure, so that one explanation. Counties clearly mean official emerges as the chief execu- many different things to the many tive or chief administrative officer local electorates within our 50 states. and a legislative body is assigned the policy making role, but with no Municipalities were given a much administrative responsibilities. broader package of authority and a more suitable structure for gov- In 1969, the National Association ernance. Municipalities served a of Counties (NACo), in order to more dense population, requiring a keep abreast of new developments, greater variety of local services. began a service called "New County Hence, it was necessary that portions U.S.A." In 1973, NACo published a of the states' power to legislate and FACT book on American counties, to levy taxes be delegated to these which included a wealth of informa- tion relating to modernization efforts across the country. It reported that: Fifty-seven charter counties provide county government to 32-million Americans. (By the end of 1974, the number of charter counties had risen to Counties have high, but undevel- Ucounties clearly are on 67.) oped, potential for solving the the move, and with good rea- Twenty-four of the nation's 68 problems of rural, urban, and son. . . Modernized coun- counties having a population of most metropolitan communities. ties could meet many of the over 500,000 have charter Their Present legal Powers are less pressing jurisdictional, fiscal, government. adequate than those of municipali- and functional challen es con- In California and New York, ties, however. And, county struc- fronting both rural an urban 70 percent of their total state tural organization and staffing f population governed by coun- patterns are obsolete. If the nation ties lives in charter counties. is seriously concerned about In Marvland, 59 percent of its stronger and better local govern- citizensdreside in 'charter ment, as it should be, these weak- counties. nesses must be remedied to permit Fifteen states have charter counties to play a major role. counties. (By the end of 1974, More states are beginning to recog- this figure rose to 16.) nize that more authority must be Since 1960, 13 states have assigned to county government, that provided home rule legislation county officials - meeting regularly for their counties. and under public scrutiny, covered Of the 57 charter counties (in by the media, audited annually, and 1973), 35 had chosen the coun- held accountable periodically at the cil-elected executive form of polls - are as suited to provide serv- government; the remainder, the ice, to make judgments on the levy of council-administrator form. taxes and the expenditures of funds, Twenty-one city-county con- and to adopt ordinances - as offi- solidations now have been cials elected to serve in municipal achieved, with 13 having been government. approved since 1947 and four Moreover, well structured and ade- of these since 1969. quately empowered county govern- NACo's weekly paper, The County ments possess special servicing News, in its December 16,1974, capacities: issue, reported that about 500 coun- County government comes ties, representing 60-million people, closest to being the government now have a county-manager form of that covers the same territory as government under which an elected such problems as solid waste commission appoints an administra- collection and disposal, mass tor with executive responsibility and transit, pollution, public health some 57 counties now elect a county and welfare programs, zoning chief executive. and land use programs, courts, law enforcement, corrections, The Rationale for Reform probation and parole, code en- Counties clearly are on the move, forcement, and others. and with good reason. For some Reformed counties have a time now, various experts on Ameri- broad tax base and the capa- can local government as well as bility of relating a given tax or politicians and other practitioners user charge to a particular have emphasized that modernized service. counties could meet many of the Such counties are well suited pressing jurisdictional, fiscal, and to coordinate the efforts of co- functional challenges confronting operating municipalities in the both rural and urban America. delivery of local services. In 1966, The Committee for Eco- nomic Development, in its report on Modernizing Local Government, declared: Finally, counties can take a posed to any change therein; leading role in confronting the Elected non-policy making substate regional challenge with county officials who fear a its many single purpose districts diminution of prestige should and authorities; about 170 they be placed in a non-elected SMSAs, after all, are composed status; ~redominantl~of one county. Municipal officials who are reluctant to see a modification The Hurdles of long established patterns of The modernization of counties then functions and services; and means changing the governmental Prevailing skeptical, if not structure and expanding the power cynical, attitudes toward all and authority of counties to pay for governments which ease the and deliver needed areawide and local task of those who oppose re- services. And, the record indicates an form and add to the difficulties increasing tempo in the beat of of those who seek it. county reform. An Agenda Yet, another trend also is underway. Thousands of single purpose special The effort to modernize county gov- districts, public authorities, and ernment needs a catalyst. For many regional agencies have emerged. years, the reports of ACIR have been Some deliver municipal type serv- a resource for improving intergov- ices. Some merely plan, coordinate, ernmental relations and have been and ~erformtechnical assistance relied uDon in a number of states as functions within their special pro- authoritative works that provide a gram areas. Some are encouraged by good basis for governmental reform Federal legislation; some have been efforts. State and local office holders, mandated by the states; and some the media, and the citizens can all have been created by local govern- find recommendations in ACIR pub- ments. But all combine to create a lications that have been thoroughly new challenge. Unless county gov- researched by what surely is one of ernment is modernized. it will lose its the outstanding staffs in Washing- potential role as the most suitable ton. They are well documented, and provider of areawide and local serv- above all, they have passed the ices, as the proper planner and co- scrutiny of the 26 members of ACIR ordinator of regional programs. who represent the public and all Experience shows that modernization levels of government. does not come easy. The hurdles are ACIR's publications can serve as a high and on all sides, including: point of departure for any group in State legislators, jealous of any state concerned with county their authority over county modernization. These publications government, and unwilling to are valuable, not only for their vote home rule power to cbunty cpality, but because of the scarcity of officials; reliable information on county gov- Citizens, unimpressed with the ernmental reform. Two recent impor- performance of county officials, tant ACIR publications cover the unwilling to vote constitutional subject in depth: The Challenge of changes to grant broader au- Local Governmental Reorganization thority to the county level, and and County Modernization: A Legis- unaware that a poor record Iator's Guide. Three of the former's often is more the result of a recommendations deal directly with state straight jacket around county modernization. The fkst pro- county government than a lack vides a complete package of county of ability in county officials; structural reform initiatives that, in County officials elected to per- form one assignment and op- County Modernization in the U.S.

addition to an optional forms au- Several of these may require consti- thorization: tution amendments; others could calls for a full time executive merely take the form of a statutory officer for metropolitan coun- enactment. But if just half of the ties, appointed by the board or states adopted only one half of these elected by popular vote; proposals, a new day would have would place county officers on arrived in county government. The a statutory rather than a consti- local taxpayer, the consumer of tutional basis; services, the counties as well as the would empower consolidation other partners in any federal system of comparable or identical coun- - all would be the beneficiaries. ty officers and functions in Counties clearly are at the cross- adjoining counties; and roads. Their recent record is impres- would authorize consolidation sive. But, the challenges confronting of continuous- counties. them by no means have disappeared. A second proposal urges enactment In a very real sense, the fate of coun- of state legislation that would clarify ties hinges on whether we accept the and systematize the functional re- fragmented servicing strategy of the sponsibili ties and rela tionships of technocrats, specialists, and single counties and municipalities. The program functionaries or whether we third would provide a stronger sup- fully recognize the merit of the tradi- portive role for the state in the tional argument for democratic gov- assignment and transfer of certain ernment. If the latter prevails - and functions to counties and mu- I believe it will - then we must ac- nicipali ties. cept the proposition that authorita- County Modernization: A Legisla- tive, accountable, multipurpose gov- tor's Guide contains drafts of legis- ernments are needed between the lative bills that incorporate these states and the municipalities. And, recommendations. These bills, if we must reject the notion that a maze of special purpose regional mech- enacted, would fully modernize anisms is an effective, responsive, or county government, since they would: responsible approach to handling the mounting planning, financial, and I transfer residual powers from servicing problems facing practically the state to local government; all of our urban and rural substate I provide optional forms of gov--- regions. ernment and place county otti- u When decisionmakers at all levels, as cials on a statutory basis; well as the electorate, clearly under- authorize consolidation of local stand the nature of these basic op- governments and of county tions, the cause of county reform can offices; only be strengthened. establish a system for the transfer of functions and au- Conrad M. Fowler has been probate thorize the county to perform judge and chairman of the Shelby urban services; County, Alabama, governing body permit counties to create sub- since 1959. He is chairman of the ordinate service areas in order to Alabama Constitutional Commission, finance and provide services in former president of National Asso- specific portions of a county; ciation of Counties and currently a increase county planning, zon- member of its board of directors, and ing, and subdivision controls in past president of the Alabama Asso- unincorporated areas; and ciation of Probate Judges. Prior to extend county powers in rela- serving as probate judge, he was tion to local planning and zon- district attorney, 78th judicial circuit ing actions. of Alabama. Judge Fowler is a mem- ber of the Advisory Commission on Intergovernmental Relations. Revenue Sharing: By Edmund S. Muskie Renewal Time Approaches United States Senator, Maine

I am glad to have an opportunity to seen revenue sharing used to justify speak to you today on a subject of drastic cutbacks in the very pro- such great interest to all of us. grams they supported. And they I want to begin by saying that I con- have seen revenue sharing funds tinue to be a firm supporter of rev- going to some communities with little enue sharing. Having made that need, and into projects with little clear, I want to say also that revenue social impact. sharing - as we now know it - faces In the middle, there are many in rough sledding in Congress. The Congress who are simply indifferent title of my remarks uses the word to the fate of revenue sharing. It is "renewal" as if reenactment were a not an issue that generally stirs foregone conclusion. That may be passions in its support. To be sure, so, but it will be neither automatic the constituents of revenue sharing nor easy. will be able to rally considerable I do not mean to play the role of the support for their cause. Working to alarmist here this afternoon. Never- their benefit will be the current dis- theless, I think that candor is in array of the economy, which has order. For if we are going to insure many state and local governments in the continuation of revenue sharing their worst fiscal shape since the in anything resembling its present depression, with promises of harder form. we cannot afford to overlook times to come. That these conflicts or underestimate the opposition that will be resolved, through renewal of has mounted against it. revenue sharing, may not be in Bevenue sha~inghas-been an impor- doubt. The form that resolution will tant shot in the arm for our federal take is a different matter. systeS Buf fiere have been prob- Those critics who feel revenue shar- ielms, and those problems have gen- ing is a retreat from national social erated opposition that we must deal goals may want to attach more with to &enact the program. That strings to the money or require an pposition is remarkably simmo application process to insure that argTmenis raiS@r=-f re~---enue only worthy projects are funded. sharing back in 1971 andandL972. 1 Those critics who feel that revenue Fiscal conservatives then opposed i sharing is too expensive and that the revenye sharing because it separated j money is just being thrown away the easy task of spending mo_ney i may want to subject revenue sharing from the diFfiiuTt one of raising it. / to the annual appropriations process Liberals a~nodthe. . it-kxdwause ! or limit the life of the program to one they wanted Fedeta! money to be or two years only. spent on specific sodprograms.. We who support a continuation of Neihr group trusted state and local revenue sharing - in more or less its officials to spend the+iGqGieI present form - must be prepared to sponsibly. meet these efforts, by focusing on constructive alternatives. And it is Arguments Against the Program not too soon to begin that process But today, there are new arguments now. that may be raised. Those who op- First and foremost, we must redefine posed the unfettered give away of what revenu

It is no news to you that Federal about 30 percent of Federal aid went financial assistance to state and local for highways; in 1976, only 12 per- government is almost as old as the cent is so budgeted. nation itself. But in our early history These totals indicate there is plenty - even proportionately to the minus- of federalism in action, and views on cule total expenditures of govern- the implications for the future of ment - such assistance did not federalism range from optimism and amount to much. That did not keep hopes to predictions of disaster for it from being controversial then, even the federal system - depending on as it is today. State and local govern- one's political philosophy or perhaps ments wanted to stay small, and they on how hopeful one may be as to our especially wanted to keep out of the ability to master some of the prob- clutches of the Washington bureau- lems which have risen to plague us, cracy. such as: The great depression of the 1930s ~,__e~~ejsiveadm-inistrative changed all that. At least some of requirements; you here are old enough to remember inability to respond to changes that period firsthand. We had WPA, in state and local priorities; FERA, NYA, and a long list of other .-h&ility to delegate decision agencies set up to help states and making to Federal field offices; localities with their economic re- and covery efforts. overlapping sources of funds Just ten years ago, Federal aid added for the same or closely related 66 Recopition of the need up to only about $12-billion - com- purposes - 230 in the health for reform in the delivery sys- pared to more than $55-billion proj- field, to mention-a-dramatic tem of Federal assistance is ected for 1976. Percentagewise, its example. not a recent phenomenon. portion of the total budget increased during this period from about 10 Improvements inDelivery of percent to 16 percent - and as a per- FeZiiirAs~istance centage of state and local outlays, The substantial growth in the num- from approximately 16 percent to 23 ber and variety of Federal assistance percent. Total Federal outlays within programs has been accompanied by this period have increased only half increasing criticism and demands for as fast as Federal aid to state and reform, even from supporters of ex- local governments. panded assistance to state and local But the overall impact of Federal governments. Recognition of the assistance is obviously greater than need for reform in the delivery sys- the financial figures indicate. Why? tem of Federal assistance is not a Because most of the assistance is recent phenomenon.Since the mid- conditional, designed: 1960s numerous attempts have been to produce action in a particu- made by the-legislative and executive lar way, branches to inipro~efhedefi~eqof to divert state and local budg- assistance to state andhdgnvern- etary resources to a different set ments. I think it would he helpful to of priorities - primarily to meet review a few of these- -efforts. --. national versus state or local -4ntqpvernmental Cooperatian Act objectives, and >J19SS. Two major steps were taken to stimulate additional taxes or borrowing efforts. In recent years, this indirect effect has become particularly important in such areas as health, education, and income security. Ten years ago, pursuant to the requirements of the C9mprehensive Employment3nd Intergovernmental Cooperation Act lrain-ctbf 1973. This-- act re- of 1968 - the issuance of OMB Cir- ~lacedthe numerous-ca te&al culars A-95 and A-98. The broad manpower programs-fhatwere au- pqoseuf_L:irc-to facili- thorized by the Manpower Develop- tate intergovernmental cooperatien ment and Training Act of n62Ld by offering state and local gwern- the Economic Opportunity Act of ments and others the opportunity to 1964 with a new compreheXsive comment on the consistency of pro- manpower program of blockgrants posed projects with state, regional, to state a-nd local gauernments fm and local policies, ~lans,and PTO- planning anb4perating programs. grams. Circular A-98 (now adminis- Previously, appropriations under tered by the U.S. Treasury Depart- these laws supported over a dozen ment) prescribed a standard process categorical manpower programs, and a standard form for providing including institutional training, timely and uniform notification of neighborhood youth corps, new grant award data to the states. careers, operation mainstream, job

--Joint Funding--- SimpLification Act of opportunities in the business sector, Iz~IXsactpermits the use of and the concentrated employment simplified and uniform adminis tra- programs. tive rules and procectrzresw)ren a Housing and Community Develop- project requires assistance from two ment Act of 1974. This act is still or more E&rd agencies. Prior to another recent attempt to simplify enactment of the legislation, the the delivery of Federal assistance to Integrated Grant Administration state and local governments. It con- Program was conducted on an ex- solidated seven categorical grant pro- perimental basis by OMB and GSA grams into a comprehensive block to demonstrate the feasibility of joint grant program for community funding. development. Comprehen&eNealth Planning This consolidation is expected to AmendmentssI'he Gmprehnsive reduce paperwork and red tape, ex- mlthPlanning and Public Health pand state and local responsibility, Se_rv_i~es_Amendments to the Pub& and help assure greater continuity Service Act established a pro- of funding because of the program's gram to assist states 2nd- locaLcom- three year authorization. munities to produce comprehensive Congressional Budget and Impound- plans for meeting their curcentad- ment Control Act of 1974. An at- future health needs. tempt to improve the Congressional Sixteen existing categorical grants for budget review and appropriation health services were consolidated process, the Congressional Budget into block grants on a formula basis and Impoundment Control Act of for comprehensive health services 1974, is importmt and relevant and on a discretionary basis for enough to be mentioned here. directing funds to areas of greatest Among other things, it provides for need. establishing and maintaining a standardized data processing and information system for fiscal, budg- etary, and program related data and information to meet the needs of Federal, state, and local governments. It also accepts the principles of The New Mix of Federal Assistance

multivear authorization and advance and executive impoundment of 66Weat GAO feel that the fund& which have been needed for appropriated funds, most important single way to many years. fosters complex and varying reduce the complexity of the Federal Assistance Review. To application and administrative current system is to further streamline and speed up the flow of processes, and consolidate separate programs Federal assistance, the President ini- is fragmented with similar pro- serving similar objectives into tiated the Federal assistance review in grams being administered by broader purpose programs and March 1969 conducted by OMB and different Federal agencies or to assign programs serving 14 major government departments agency components and with and agencies. In brief, its purpose programs too restrictive to meet similar goals to the same Fed- was to place greater reliance on state state and local needs. eral agency. and local governments, move Fed- State and local governments must eral decision making out of Wash- devote too much time and effort to ington, D.C., and reduce red tape. simply keep informed of available Results of this program to date Federal assistance. In spite of their include: efforts, available assistance is often the establishment of common learned of too late or offered under regional boundaries and loca- time constraints such that state and tions for the major grantmaking local governments cannot take ad- agencies, and vantage of it. the formal creation of Federal I am aware that these comments may Regional Councils, and devel- simply repeat these and other criti- opment of uniform administra- cisms you have heard many times tive requirements for grants to before. Why do the problems persist? state and local governments. We in thGOfeel that the most important single way to reduce- ---- the complexity of the current system is to further consolidate separate pro- GcndAccounting Office studies grams serving similar objectives into conclude fiat, despite the actions broader purpose programs and to taken to imp;ove the delivery system, assign programs serving similar funTamental ~roblemscontinue. We goals to the same Federal agency. have barely scratched the surface - there is still a lot to be done to There are a number of ways of achieve the objectives of the lnter- achieving these objectives: one governmental Cooperation Act. approach would be to enact pre- viously proposed amendments to the FededaSencies still insist on the - lntergovernmentai Cooperation Act "unique" requirements of individual of 1968 which would establish a programs and have a general lack of rapport with state and local officials. mechanism for achieving program consolidation. The proposed amend- Many other problems are directly ment would direct the President to attributable to the proliferation of periodically examine various assist- Federal assistance programs and the ance programs and recommend to the fragmentation of responsibility Congress for approval those pro- among different Federal departments gram consolidations deemed neces- and agencies. sary or desirable. Our conclusUthe present delivery system: lacks an adequate means for disseminating grant information needed by state and local governments, creates a high degree of fund- ing uncertainty due to late au- thoriza tions and appropriations Perhaps equally important is the from the legislatively defined prob- need for greater use of multiyear lems for which they were made avail- appropriations and forward funding able. As new problems are perceived, of Federal assistance programs as a new categorical grants are created, means of reducing the present high but old grants build a constituency level of funding uncertainty for that often keeps them alive even grantees as well as the program when the need for them may have agenc-y iavolved. passed or have been outweighed by some newer concern. As a result, Thus, we have a mix of methods for many similar categorical grants have providing Federal assistance - cate- developed which need to be coordi- gorical grants, block grants, general nated. However, their sheer numbers revenue sharing, and tax expendi- of ten defy efforts at coordination. tures - each of which has played an important role in providing Federal Having offered these criticisms, it is financial assistance, a pattern devel- important to emphasize that cate- oped through an evolutionary and gorical grants have an important role incremental process over nearly two in the delivery of Federal assistance. centuries. They are especially valuable for research and demonstration activities Categorical Grants or when the overriding objective is At the risk of oversimplication, we to prescribe a miminum level of , can describe in general terms the services. process which led to the development Block Grants - of categorical grant programs. The Federal government, when it moved I will now turn to block grants. to legislate on a problem of national Interestingly, proposals for block concern, had to determine whether grants can be traced back as far as the problem was such that it war- 1949 when the first Hoover Commis- ranted national administration or a sion urged that "a system of grants cooperative program with state and/ be established based upon broad or local governments. Categorical categories . . . as contrastedwith the grants rest on the concept of dealing present system of extreme fragmen- with national problems with a maxi- tation." I am hesitant to speculate as mum involvement of state and local to what the Hoover Commission governments. would say today in the light of what has happened since that time. For a typical categorical grant, how- ever, there is usually strong direct Block grants by definition are broad Federal influence on how the solu- inpurpose, foc@ngonfunctional tion of the problem is to be ap- ar2For example, before the pas- proached. The administrative detail sage of the Comprehensive Employ- involved usually results in higher ment Training Act of 1973, which administrative costs. Reporting, , replaced numerous categorical man- accountability controls, and grant ; power programs with a manpower I application and approval systems are block grant program, a grantee re- 1 inevitable if the Federal government ceived funds separately for such j is to be assured that the funds are purposes as youth employment training and public employment. If 1 spent effectively in carrying out the' statute involved. the grantee had a greater need for public employment activities than for 'Categorical grants are of limited help youth employment training, it never- in responding to changing needs or theless had to operate with only the different problems since both the i funds provided or else supplement I grantor and grantee have limited these funds with its own resources. flexibility in directing funds away Youth employment training funds could not be used in support of sep- arately prescribed public employ- ment activities. Under the new block The New Mix of Federal Assistance

grant, a grantee has more flexibility The matter of flexibility, a principal to apply as much of the manpower characteristic of block grant pro- funds as he feels appropriate to grams, raises the important question public employment activities. - some would say dilemma - of just By our earlier definition, there are how far consolidation can be pur- currently five block grants, of which sued without sacrificing the national only the Partnership for Health Act objective for which the grant was of 1966 and the Safe Sreets Act of created. Block grants place a major 1968 have been in operation for any responsibility on states to length of time. Both programs are assume leadership in an area of similar in that most Federal funds major concern, flow in a block to the states which, avoid the temptation of exces- in turn, make funds available to sive categorization of funds their political subdivisions. However, provided to the political sub- the two programs arose under dif- divisions, ferent circumstances - the Partner- develop and maintain a har- ship for Health program resulted monious working relationship from a consolidation of 16 existing with the political subdivisions, categorical grants and the Safe and Streets program was enacted in re- evaluate the results of the sponse to a national concern for broader program- - objective. which no comprehensive Federal Along with these responsibilities assistance program existed. comes a downward shift in the degree Two principal considerations gave of direct Federal influence over the rise to the creation of block grants: solution of national problems. To the (1)reducing the administrative work- extent this shift can be accomplished load and costs associated with cate- - while at the same time maintaining gorical programs and (2)~roviding a delicate balance of national, state, recipients with greater flexibility in and local concerns - block grants using available funds. No one really will become increasingly important as knows whether total administrative a method of providing assistance to costs are reduced under the block state and local governments. pmkqpmach. We plan to study General Revenue Sharing this in the future. The record may -- .-- possibly show that the administrative General revenue sharing is the most burden at the Federal level is shifted recent approach to assiLting state and from the review of multiple applica- local governments. The CoGreG tions and proposals for assistance to conclided that aid made avazable the review of operating plans. How- under this program should provide ever, it certainly seems logical that, recipient governments with broad when separate categorical grants are flexibility in the use of the funds combined into a single grant, admin- with only very general guidance from istrative costs should be reduced. The the Federal government. State and matters of administrative costs and local governments automatically flexibility in resource allocation also receive revenue sharing funds, require further study. For example, whereas they must apply or submit a we have found that some states re- plan for assistance under categorical ceiving funds through a block grant or block grants. Revenue sharing often pass the funds on to their funds may be used by a local govern- political subdivisions on a categori- ment for priority expenditures in a cal basis. number of areas broadlv defined bv the legislation and by a state govern- 66 I predict that eneral ment- for generally whatever it de- a government's budget are ty&ally revenue sharing wi7 1 be the cid-cs- based on total resources aviulable to most controversial, debated, General revenue sharing can be best the government, it is extremely diffi- and studied of all Federal as- characterized as general fiscal sup- cult, and probably impossible, to sistance programs. port payments or - perhaps more objectively identify the effects of accurately - as income redistribution revenue sharing-This-isagrohlern 99 payments. I predict that it will be the for us at the Federattt'feVeTZn3-also most controversial, debated, and for citizens and state and ~UCTIT&& studied of all Federal assistance cials. The data reported merely por- programs. trays activities being directly funded with revenue sharing. To be mean- GAO is directed by law to assist in ingful, such data shguld be inte- the Congressional evaluation of the grated and related to total expendi- program by reviewing the activities tures for state and local activities by of the Treasury Department and the purpose or function. use of funds by state and local gov- In a broader perspective, the devel- ernments. GAO has issued two re- opment of comparable inf-ormation ports to Congress on revenue shar- on the activities of state andlo_cal ing and several other studies are government would be of =at value currently underway. at the national level, not o& in In both reports, our chief concern evaluating revenue sharing-lwt also was the inability to identify what has in establishing funding priorities for actually happened as a result of the all Federal financial assistance program. Because of the wide discre- programs. tion recipients have in using the At least conceptually, tax expendi- funds, revenue sharing in its simplest tures that aid state and local gov- terms represents merely an addition ernments are similar to revenue to the total resources available for sharing or income redistribution governmental expenditure. Revenue prograks in that they do not involve sharing,-aid from other govern- the procedures applying to categori- ments, and a government's own re- cal or block grants. The subject of sources are used to provide the same tax exvenditires has received new sEvFces. This creates a situation intereSt with the passage of the wh~ef+s can be easily displaced Congressional Budget and Irnpound- or sluESGtuted. Thu-sLthere.a.re a rnent Control Act of 1974, which varietyof effects which are not nec- requires the budget to identify tax essarily-reflected by the direct use of expenditures and requires the Con- the revenue sharing funds. For gress to consider tax expenditures instance, --- in relationship to total Federal its own funds may be freed to expenditures. finance other programi (new af or old), The exclusion interest on state and local securities from Federal tax- it may be able to avoid increas- able income permits these jurisdic- ing taxes, tions to borrow at lower rates of it may be able to reduce taxes, interest. In 1976, this win reduce or Federal receipts by nearly $5-billion. it may experience a combina- Moreover, when individuals are per- tion of these or other conse- mitted to deduct state and local taxes quences. from their taxable income, the juris- Because budgetary choices among diction is able to raise a dollar of competing programs and decisions revenue with less than a dollar net regarding_the_methods for financing cost to its taxpayer. This is a difficult figure to identify precisely in ad- vance, but it is estimated that it will total about $16-billion in fiscal year 1976. The New Mix of Federal Assistance

Summary and Conclusions a broad study to assess tLe effective- ness of the methods of delivering I can certainly agree with the impli- Federal assistance. More work needs cations of the title of the subject to be done. Efforts at further im- given me today - that different provement require the interest and approaches to Federal assistance joint participation of policyrnakers involve different management and at the Federal, state, and local levels. money implications. Probably more No one level of government can do it important still is the potential impli- alone. cation for the future of our federal form of government. We are un- Elmer B. Staats became Comptroller doubtedly going to need all of the General of the United States in 1966 present forms of assistance, or at following 26 years of service in the least elements of them. It is not likely Federal government. Prior to his that we have seen the end of the present appointment, he served as growth of Federal assistance. At the deputy director of the Bureau of the risk of being contradicted by all of Budget under Presidents Johnson, the papers delivered at this confer- Kennedy, Eisenhower, and Truman. ence, I doubt whether we have fully Before joining the Bureau of the assessed the dangers which lie ahead Budget in 1939, he was a fellow at -and which are possibly inherent in the Brookings Institution. Dr. Staats massive Federal aid-unless we are holds a masters degree from the willing to realize that over a period University of Kansas and a Ph.D. of time we can, and possibly already from the University of Minnesota. have, radically revised our concept of the relationship of the Federal, state, and local governments. The concept of the Constitution as a living and flexible document is no more sharply illustrated than in the financial rela- tionships of the Federal-state system. I am not suggesting that this chang- ing relationship is necessarily bad, but we need to understand its poten- tial implications. We need to go back to the hearings which led to the enactment of the Intergovernmental Cooperation Act of 1968, to accept that statute as probably the best starting point available, and to see whether we can build upon it. We particularly need to take seriously the concept in that act of a periodic assessment of both the need and form of various assistance programs. I am encouraged to note that the Advisory Commission on Intergov- ernmental Relations recently initiated Federal Assistance: By Daniel J. Elazar Its Current Impact and Director, Center for the Study of Future Implications Federalism, Temple University

I think that Mr. Staats gave us a very generalists in the process and show- good description of the present mix ing how broad a categorical grant can of Federal assistance programs and be when one knows how to use it. their uses, the reforms needed to There are other similar example^.^ make them work better, and even the Categorical grants have a certain dangers that lie in the whole busi- breadth within them which should ness. I agree with him that the mix not be overlooked and which has that we have is probably here to stay; certain advantages in allowing both I agree that we should move along Federal scrutiny and state and local the lines of reform that he suggested; adaptation. And so, I think, it is not and I certainly agree with the neces- entirely accurate to follow the line sity to remind ourselves constantly of that has been developing in the last the dangers and problems that this or few years that categoricals are nec- any set of programs brings. In addi- essarily narrow and that when you tion, however, I have three basic want to get away from narrowness, comments to make concerning the you have to get away from cate- mix and its component parts. Finally, gorical~. I would like to suggest that recent Secod, block-g~artzs are mt as findings in political science raise new broad as they are b&t4 be. In questions about some of the conven- those block grants operating now, tional wisdom that we have come to the little research that is available accept in the intergovernmental indicates that there is almost no dif- relations field and that we must come ference in use of money as a block to grips with their implications. grant or categorical grant. The First of all, I think that, in consid- Partnership for Health program is ering the mix, we should remember perhaps the leading example of this. that categorical grants are not as While the block grant has enabled narrow as they sometimes seem. I am the trimming away of certain periph- certain that the research of the aca- eral categories or obsolescent pro- demic community on this subject and grams, most expenditures have been the experience of most of you in this along the same lines as in the past room would converge on this matter. requiring only a different set of Fungibility is not difficult with cate- paperwork. Not only that, but Con- gorical grants and, indeed, the fact gress almost immediately started that they tend to be controlled by adding new categories to the block 'For further information on categorical specialists - the very element of grants. There is a natural tendency grants, see: categorical grants that has led gov- William Anderson, "The Federal Equilibrium on the part of those who are respon- and the States," Cooperation and Conflict: ernmental generalists to criticize them sible for the appropriation of funds Readings in American Federalism, edited by so severely - adds to their flexibility. to try to guide the direction of their Daniel J. Elazar, R. Bruce Carroll, E. Lester An excellent example of what hap- expenditures - a problem we are Levine, and Douglas St. Angelo (Itasca, Illi- pens when specialists are removed nois: F. E. Peacock Publishers Inc., 1969). facing in connection with revenue from the Federal plane of govern- R. Bruce Carroll, "lntergovernmental Admin- sharing as well. istrative Relations," Cooperation and Conflict: ment is the recent raid on the U.S. One point where I have to take some Readings in American Federalism, edited by Treasury in the area of social serv- slight disagreement with Mr. Staats Daniel J. Elazar, R. Bruce Carroll, E. Lester ices. There was a loophole in the is in the implication that the states Levine, and Douglas St. Angelo (Itasca, Illi- provision of the categorical grants receiving blo& grants should not nois: F. E. Peacock Publishers Inc., 1969). and the specialists at the state level Martha Derthick, "Professional Fiefdoms Ap- categorize when they pass them on praised: The Case of Social Services," drove their trucks, at least 50 of to localities. I think that question is PUBLIUS, The Journal of Federalism, them, right down through the middle one each stai should determine on (forthcoming). of that program, running over the its own. It knot categorization that Morton Grodzins, The American System (Chicago: Rand McNally, 1968). is bad, perse, but whose priorities it Edward Weidner, "Decision-Making in a reflects &at is at issue. Federal System," Cooperation and Conflict: Readings in American Federalism. Edited by Daniel J. Elazar, R. Bruce Carroll, E. Lester Levine, and Douglas St. Angelo (Itasca, Illi- nois: F. E. Peacock Publishers Inc., 1969). Revenue Sharing action that revenue sharing was 66 The mix is carryin us Third, revenue sharing is not as free supposed to bring. along the right lines and mov- as.it- be. I thinkwe all What this means, in effect, is that the ing 6s in the right direction; it know that. There are certain con- mix is carrying us along the right could lead US to a better bal- straints that come automatically. For lines and moving us in the right ance of Federal aids than we example, the pressures on state and direction; it could lead us to a better have had in the recent past. local governments during an infla- balance of Federal aids than we have tionary period have certainly func- had in the recent past. But everv tioned to restrict flexibility in revenue solution creates its own problems, sharing. Innovation and imagination usually based upon unanticipated in local governments come second in consequences and, in particular, on priority to budgets and budget the existence of multiple and some- deficits which have to be covered. times contradictory purposes, even Increased salaries must be dealt with on the part of those who unite in first and foremost. Another restric- its support. tion built into the law is that the I am reminded of the story of the state pass through money to the preacher who was trying to convince standard list of local governments. his congregation to give up strong Because the standard national pass drink. In the process of his sermon, through was established without he decided that he would give them a regard for local realities, we have demonstration and so he very care- counties in New England and town- fully pulled from inside his pockets ships in the Midwest that receive two shot glasses, set them on the money to make them into govern- lectern in front of him, pulled a flask ments that they weren't - not to of whiskey and a flask of water, speak of what this single act has filled one with one, one with the done to the cause of local govern- other. He then carefully pulled two ment consolidation. I am not a par- worms out of his watch pocket, ticular friend of local government dropped one in the water and it consolidation, but I do believe in the swam around, dropped the other in option, and chances are that local, the whiskey and it shuddered and general purpose governments will died. Then he turned to the congre- not be willing to lose their own reve- gation and said, "My friends, what nue sharing funds to consolidate. does this teach you?" A man in the The same question can be applied to back row got up and said, "If you equal rights enforcement. I think got worms, drink whiskey." Some- none of us in this room are opposed times the Federal government is try- in any way to the enforcement of ing to teach the states and localities equal rights. At the same time, there not to drink, when the states and is a question of what happens when localities want to get about the busi- this enforcement power is transferred ness of killing worms. to the Federal government, as it could Despite a tendency to think other- be under revenue sharing. Since wise, multiple purposes are to be revenue sharing money can touch expected and can be good, since that every aspect of state and local gov- is what federalism is all about. So we ernment, a whole set of regulations must include them in our thinking, might be promulgated under the act allowing and even encouraging them as it now stands, thereby defeating to flourish. This may require some its fundamental purpose. And final- rethinking of our premises. ly, we note that there are many con- ditions being proposed in connection with the discussion over the renewal of revenue sharing, some of which may well be enacted, and any of which would reduce the freedom of The ideas underlying this confer- state and locaadifferences in ence are the products of the thinking program administration and the and the research of the period be- virtues of those differences; between the 1930s and the 1950s. the locus of coordiaakenand Some great names come to mind its impact on other govern- when we think of the men who ment~.~ forged the framework which we are Beyond these extensions of the ideas using today: William Anderson, that are a common currency, we have Louis Brownlow, Edward Corwin, questions about whether the organi- and Morton Grodzins. zational forms that we have come to These men gave us a new sense of recognize, the hierarchical structures how federalism was, and should be, that we assume are the appropriate based on cooperation among govern- ones for conducting massive pro- ments rather than on their separation grams, are indeed so ~seful.~Organ- or isolation. We have come to under- ization theorists are beginning to stand and accept their ideas and see question the widely held-_assumptions their validity, and we are now just that duplication is invariably bad, to completing the translation of these suggest that in some cases it should 5Martha Derthick, "Professional Fiefdoms ideas into practice, as Dr. Staats has be seen as healthy redundancy, a Appraised," and indicated. "fail safe" mechanism.'6 Tyrone Baines, "Categorical Grants and the New Issues in Federalism Would it be better to tailor organiza- I Local Community: The Delivery of Relocation tions to their service needs? The Services," PUBLIUS, The Journal of Fed- Since the ideas of these great men evidence, some of which comes from eralism, 5, 4 (Fall, 1975, forthcoming). have come to be the common coin of 6A. Lee Fritschler and Morley Segal, "Inter- the ACIR itself," indicates there are governmental Relations and Contemporary the realm in governmental circles, grave differences in the delivery of Political Science: Developing an Integrative members of the academic community services based on the scale of the Typology," PUBLIUS, The Journal of Fed- have been building on those original operations involved. There is sub- eralism, 1, 2 (Winter, 1972). theories to give us new ideas and new stantial evidence, for instance, that 7Aaron Wildavsky and Daniel Goode, "Fed- evidence which will have program- eralism, Planning and Organization Theory: small local police forces are more A Review," (Berkeley, 1974, Mimeographed). matic implications of their own, car- effective than large, consolidated Earl M. Baker, Bernadette A. Stevens, Stephen rying the earlier ideas a step further. ones for certain very important law L. Schechter, and Harlan A. Wright, Federal Some of these ideas and the studies enforcement purposes.12 Grants, The National Interest and State Re- related to them are straight forward What about the ways to achieve sponse: A Review of Theory and Research extensions of what is now the con- (Philadelphia: Center for the Study of Fed- interlocal collaboration? There is a eralism, 1974). ventional wisdom. Others have great deal of evidence that simple 8Daniel J. Elazar, "Cursed by Bigness or revolutionary implications and need talk among local officials sharing a Toward a Post-Technocratic Federalism," The to be considered in our thinking common professional interest in ad- Federal Polity. PUBLIUS, The Journal of Fed- today. A few of thequestions that eralism (Special Issue) 3, 1 (Spring, 1972). jacent jurisdictions goes further to Vincent Ostrom, "Can Federalism Make a are under study or are good candi-- produce very discreet, distinct, and Difference!" The Federal Polity. PUBLIUS, dates for research today, in Tight of specific forms of interlocal collabora- The Journal of Federalism (Special Issue) 2,i new ideas and new realities, include: tion than all the coordination from (Spring, 1972). Vincent Ostrom, Charles M. Tiebout, and Robert Warren, "The Organiza- &e dethat professionals ad tion of Government in Metropolitan Areas: categorical grants play in the A Theoretical Inquiry," American Political system that generalists cannot Science Review, 55 (1961). always ass~me;~ loMartin Landau, "Federalism, Redundancy and System Reliability," The Federal Polity, the varieties of relationships PUBLIUS, The Journal of Federalism (Special that are now emerging among Issue) 2, 1 (Spring, 1972), 173. those who are actors within the 11Advisory Commission on Intergovernmental cooperative framework; Relations, Fiscal Balance in the American Federal System, 2 vols. (Washington, D.C.: the uses of conflict as a way to 1967). promote the health of the sys- I2Elinor Ostrom, Robert B. Parker, and Gor- tem; don P. Whitaker, "Refining and Measuring Structural Variations in Intergovernmental Arrangements," The Study of Federalism at Work, PUBLIUS, The Journal of Federalism (Special Issue) 4, 4 (Fall, 1974). 87. Federal Assistance: Its Current Impact and Future Implications

above.13 I, myself, have observed in Daniel J. Elazar, professor of politi- cities adjacent to each other how cal science and director of the Cen- police chiefs agree to allow drivers to ter for the Study of Federalism at go up to a certain speed above the Temple University, is currently on legal speed limit before ticketing leave to serve as professor of politi- them. These are often very specific cal science and head of the Institute agreements, never written down any- of Local Government at Bar Ilan where, never leading to any formal University in Israel. He has previous- action. ly taught at the University of Illinois What do we do when we discover and the University of Chicago, where that suburbanites don't even go to he received M.A. and Ph.D. He is the center city anymore? The impli- editor of PUBLIUS: The Journal of cations of this discovery, substan- Federalism, and is the author or editor tiated by recent studies, are devastat- of 16 books, including American ing to many current theories.14 Federalism: A View from the States, What do we do when we find out The American Partnership: Federal- that what used to be regressive taxa- State Relations in the Nineteenth tion may not be and what used to be Century, and The Politics of Ameri- progressive may not be? Indications can Federalism. are that the Federal income tax, which used to be progressive, now increasingly burdens the middle income wage earners in ways that were never intended because dollar income has risen faster than adjust- ments in the tax laws. In addition, some states are beginning to talk about taxing the extraction of raw materials in such a way that changes progressivity entirely. These ideas and studies have yet to be reflected in our agenda for Fed- eral-state-local relations. All lead us back to the first principles of fed- eralism. In the 1970s and 1980s, we will be required to come to grips with them if we are to make Federal assistance work right.

13H. Paul Friesema, Metropolitan Political Structure: Intergovernmental Relations and Political Integration of the Quad-Cities (Iowa City: University of Iowa Press, 1971). '4Joseph Zikmund, 11, "Sources of the Sub- urban Population: 1955-1960 and 1965- 1970," The Suburban Reshaping of American Politics, PUBLIUS, The Journal of Federalism (Special Issue) 5, 1 (Winter, 1975), 27. Coming Issues in By Ralph R. Widner Public Control Versus Director, Academy for Property Rights Contemporary Problems, Ohio State University

Once again, the role of governments, faith, government intervention in the Federal, state, and local, in directly operations of the market place ac- influencing patterns of regional celerated rapidly during these years, growth and development has become but without cohesion or apparent the subject of domestic debate. framework of purpose. For most of our colonial history and At the present time, we have no for almost 100 years after independ- explicit national policies on growth ence, one of the principal objectives and development. We have instead of government at all levels was to congeries of policies and programs, provide for, and encourage, the many of them redundant or contra- growth and development of our dictory; but overall, they add up to communities and regions. Our objec- a body of policy that, perhaps un- tive was to place as much land and intentionally: l5 resources in the hands of settlers promotes the industrialization and entrepreneurs as ~ossible,assure of American agriculture; them adequate access to markets, and reacts to, rather than shapes, the allow matters to take their course. economic and social conse- Having established this framework quences flowing from patterns for development, from the latter of private investment and the 19th century through the first two introduction of new tech- decades of this century our policy nologies; was laissez faire: government's chief except in the case of large scale responsibility was to leave the "in- Federal public works, requires visible hand" of the market alone to that public investment follow, work its will. Adam Smith had con- rather than lead, private invest- vinced us that pluralistic decisions ment; working their cumulative impact leaves to private decisions and through the interplay of competition information the allocation and were Far more efficient and more direction of geographic shifts of likely to achieve outcomes in the manpower with minimal public best interests of society than any attempts to influence these heavy handed attempt by govern- flows; ment to direct the course of national leaves depopulated rural re- development. gions to their own devices in Of course, even in the hey day of adjusting to shifts in the pat- laissez faire, the "invisible hand" of terns of national settlement and government was employed, some- economic activity; times surreptitiously, to favor some in metropolitan areas, favors forces over others in influencing the the construction of new housing national patterns of growth and and urban infrastructure on development. undeveloped, outlying suburban With the prosperity and seeming tracts over the conservation and abundance of the post World War I1 rehabilitation of existing hous- years, we embarked on a binge of ing and community inf ra- development and consumption that structure; transformed the face of the country favors the development of raw IsDavid K. Hartley, Janet Patton, and Lucia and brought us into the unexplored land on the metropolitan Findley, "The Regional Impacts of Federal domain of a trillion dollar economy periphery over the use of va- Policy," Background Papers: National whose needs were supplied to an in- cant lands within developed Public Works Investment Policy, U.S. House creasing degree by a worldwide areas; of Representatives (Washington, D.C.: 1974). hinterland rather than the natural See also Carl W. Hale, "Impact of Federal Policy and Technological Change on Regional largesse of the continent that we had and Urban Planning Problems" Land Econ- so recently and rapidly developed. omies, February 1971, and testimony by Despite lip service to the laissez faire Anthony Downs before the Committee on Public Works, U.S. House of Representatives, November 1,1973. encourages the concentration The Rural-Urban Shift of low income minorities in The current discussions and debates inner city areas while simulta- over the need for more clearly formu- neously subsidizing the location lated policies on growth can be said of employment and housing for to have started in September 1965, middle and upper income when six Cabinet officers in the groups in outlying areas; Johnson Administration convened a favors home ownership over national group to discuss "National tenancy; Growth and Its Distribution."16 supports and promotes the use That opening gun in today's growth of surface and air motorized debate was followed shortly by the transport as the prime means report of the Advisory Commission of conveyance; on Intergovernmental Relations in acquires land for public facili- 1968 entitled Urban and Rural ties at the time of need rather America: Policies for Future than in advance; Growth.17 During the next several grants benefits accruing from years, a cascade of such reports appreciation in land prices followed, almost all of them ad- related to public improvements dressed to one aspect of our awak- to private land owners rather ening concern with the national than the general community; patterns of development: the dra- reacts to the consequences matic rural-to-urban population shift flowing from hidden policies by of the previous four or five decades.18 enacting "placebo" programs to Yet ironically, by the time these calls mollify those adversely affected to action were issued, the rural-to- by prevailing patterns of na- urban movements in population were tional and regional develop- within hailing distance of having run ment; their course. A revolution had oc- until recently, directed that curred in where people live and how environmental problems be they live. However, within another cleaned up after they occur; decade and a half that transformation sets national standards for air in the nation's patterns of settlement and water quality; will be almost over and a new and sets aside publicly important different one begun.19 The question natural and historic sites for has become not how to stanch the protection. rural outflow of population and the These characteristics are purposely demise of small communities, but stated in largely pejorative terms in how to restructure governance and order to relate them to some of the access to opportunities in both rural concerns expressed in the running and urban America now that settle- debate over the feasibility or desir- ment and economic activity have ability of more considered policies to assumed new patterns which no 16"National Growth and Its Distribution," guide our future national and region- longer match the mechanisms of Symposium on Communities of Tomorrow, public finance and public services December 11 and 12,1967, U.S. Department al growth. Implicit in the argument of Agriculture, Washington, D.C. in favor of such policies is the wish that our great grandfathers created "Advisory Commission on Intergovernmental for more effective orchestration of under earlier conditions.20 Relations, Urban and Rural America: Policies national policies and programs to for Future Growth (Washington, D.C.: 1968). Protection of the Environment achieve the results we desire. New laDavid K. Hartley, Milton Patton, and Ralph However, while recasting our notions R. Widner, Elements of Growth Policy (Co- public concerns over the conse- lumbus, Ohio: Center for Contemporary quences flowing from such "hidden" about how to cope with these new Problems, 1974). policies have prompted calls for national circumstances, our aware- '9Economic Research Service, U.S. Depart- revised approaches to national and ness extended in another direction ment of Agriculture, The Economic and Social regional development. adding still newer dimensions to the Condition of Rural America in the 1970's growth debate. (Washington, D.C.: 1971). ZONationalAdvisory Commission on Rural As the first photos of the planet Poverty, The Peopk Left Behind (Washington, came back to us from the cameras of D.C.: 1968). 66But now and in the fu- the astronauts, popular awareness - all these and more have led to ture, unbridled pluralism is dawned that spaceship earth is a fundamental questions being raised and will be in jeopardy in the fragile and limited vessel upon which about whether we any longer possess face of potential scarcities that only 50 many demands can be placed an adequate set of legislative and will require different ap- without jeopardizing the selfrenew- executive procedures for the govern- ing natural systems that support us. ance of a rapidly changing, highly proaches to the allocation of interdependent, metropolitanized resources than we have known In face of this awareness, the growth policy debate became less preoccu- society. In a metropolitanized world, pied with the rural-urban dichotomy nearly everything is connected to and centered more upon the manage- everything else. In earlier days when ment of the of human - the government's role was restricted development to keep them within the to custodial functions, pluralism had tolerance of regional environments. more advantages than disadvantages. States and communities concerned But now and in the future, unbridled with the depredations of economic pluralism is and will be in jeopardy and population growth upon the in the face of potential scarcities that physical quality of life within their will require different approaches to jurisdictions began to undertake the allocation of resources than we actions to control, prohibit, or chan- have known in the past. It is this nel development with such preserva- potential development that now lends tion in mind. In Vermont, Maine, the growth debate special urgency. Florida, California, Washington, Oregon, and Hawaii, new approach- National Planning es were launched to control and man- In December 1973, Herb Stein, chair- age the location of growth. man of the Council of Economic Ad- More recently, the oil embargo and visors in an Administration devoted impending shortages in other raw to the devolution of powers back to materials have sensitized us to still state and local governments, reluc- another dimension of the problems tantly admitted to an audience at the of growth. We have come to realize annual meeting of the American that the conspicuous consumption Economic Associa tion that "maybe of energy and materials - the failure we need an economic planning agen- to conserve and re-use - is a short- cy like the Japanese or French."z' term luxury at best. He added: "If the government is going to be as much involved in Anticipatory Democracy details as it is becoming, then the Finally, a fourth dimension has been concept of the little Council of added to the debate. It relates to the Economic Advisors - with 16 pro- many undesired and unanticipated fessionals - focusing mainly on results that have flowed from well fiscal and monetary policy will be meaning, but single purpose policies, inappr~priate."~~ programs, and decisions. The New York Times,in reporting The complex structural consequences Stein's observations, pointed out that of the energy crisis; the effects he was not alone in his feelings that within the economy of the sale of the U.S. might be compelled by ne- wheat to the Soviets; the second and cessity to develop new national third order effects of environmental planning capabilities. One of Stein's policies; inflationary pressures that predecessors at the council, Otto cannot be controlled by traditional Eckstein, who served under President fiscal and monetary policies; the re- Johnson, feels that the CEA is "in sulting involvement once again in desperate need of a successor agency wage and price controls; the increas- ingly critical state of national and international economies; the collapse of much of the nation's rail transpor- 21New York Times, December 31, 1973. tation system; the impending short- zllbid. age of a number of critical materials Coming Issues in Public Control Versus Property Rights

to deal with narrower problems than We have gained from our disillusion- fiscal and monetary poli~y."~3 ment with the 1960s a healthy skep- Eckstein also pointed to the Japa- ticism about what we know and do nese planning experience as a useful not know about the social system example. and the effects of public policy upon John Dunlop, chairman of the Cost it. In much of the thinking about of Living Council, had urged the future directions for public policy, creation of some entity to concern there is a disavowal of old planning itself with structural problems in the and organizational concepts that economy and Marina Whitman, a arrogated to the technician some former Nixon appointee to the CEA, omnisicent wisdom about what the remarked at the same conference society requires and what policies Stein addressed that "There is a dy- and programs will meet those re- namic in the United States and else- quirements. The old notions of plan- where of a very marked increase in ning in which goals are set, targets the responsibility governments have selected, courses plotted, and re- to manage the economy. This im- sources allocated are - or should be poses a dynamic on the council."24 - dead as the Dodo. Certainly, it is not difficult to detect No one has clearly defined the new such a dynamic at work in the forms and approaches that should American economy. To some, it may replace these dead ones, but they are seem cruelly ironic that just as we glimmering on the horizon. They are were recoiling from the excesses of more open ended, less reliant on the interventionism in the 1960s, the so called expert, based on social urgent realities of present crises are learning and continued adjustment moving us into further interventions derived from continuous societal before we are any more certain of auditing and evaluation.25 what to do. To steal a leaf from the French, We are being impelled in the face of planning in the U.S.might be more crisis after crisis toward the formula- indicative in character with the Fed- tion of policies on growth and pro- eral government establishing stand- grams for the control and allocation ards and goals and state, local, and of resources which only a few years private instrumentalities bearing ago would have been unthinkable. most of the responsibility for im- plementation. What Kind of Planning and Policies? What must be added is a new capa- Five Questions bility for assessing probable conse- But what kind of policies can we now quences in advance of policy adop- accept in the face of these condi- tion and continuing evaluation and tions? Certainly, we are unlikely, ex- adjustment of policies and programs cept under the extremities of wartime to better assure the outcomes we conditions, to tolerate the heavy desire. We must also become far more handed, clumsy forms of bureaucrat- specific about the outcomes we do ic planning, the image of which, want. heretofore, has been invoked to stifle To make sense out of existing policy, any open and honest consideration one leading student of the debate has of such matters in the United States. suggested, we need to be able to answer five questions: Can we agree- on what problems Blbid. we wish to correct? "lbid. 2SSeefor example, John Friedman, Retrack- Can we distinguish by priorities ing America; A Theory of Transactive Plan- what we wish to achieve? ning (Anchor Press and Doubleday, New Can we agree on the cause and York: 1973); and Edgar S. Dunn, Jr., Eco- nomic and Social Development; A Process of' Learning (Published for kesources for the Future, Inc., by John Hopkins Press, Balti- more: 1971). effect relationship between poli- and less ugly and wasteful pat- cies, programs, and their results? terns of metropolitan sprawl Can we agree on the basic deci- which are likely to breed the sion levers which would have to expensive renewal needs of be pulled to bring about the re- future decades. sults we desire? How to protect fragile environ- Can we agree on the social costs ments or areas of special public for various alternatives for interest from development. change?26 How to devise more appropri- ate procedures of governance What are the Problems? for metropolitan and non- By no means is there a consensus metropolitan areas now that the about either the problems we face or shift in our national settlement what should be done about them. But structure is virtually completed. most of our concerns with the prob- Should some public services be lems of growth now center upon the regionalized to achieve econo- undesired consequences that flow mies of scale, while others are from the development of a metro- decentralized to produce greater ~olitanized,land hungry, high responsiveness to the needs of energy, high consumption society. those being served? We might pose at least the following How to minimize the economic eight sets of questions to define some and social costs of change in of the problems about which current metropolitan and non-metro- debates about growth policy have politan areas. What policies been concerned: should be developed to assist How to avert unintended, un- older cities facing substantial desired consequences for the economic transition? What new nation's social, economic, and approaches to the delivery of physical development which services in rural areas can be flow from single purpose public devised to provide a quality of and private decisions, policies, life comparable to that enjoyed and programs adopted without by urban residents now that the anticipation of their rob able worst is over in the rural to cumulative impact on national urban shift? growth. How to correct the mismatch How to reduce the overall en- between the structure of tax ergy and material consumption policy at the state and local levels of a metropolitan society level and the changing patterns by more nearly approximating of growth and public demand the selfrenewing cycles of in both metropolitan and non- nature itself. metropolitan areas. How to minimize the adverse How to overcome the extremely environmental consequences corrosive and destructive prob- that spring from present pat- lems that spring from the en- terns of metropolitan develop- forced isolation of minorities in ment. How to avoid excessive, the inner city through racism; a regional concentrations of set- situation that can only lead to tlement and economic activity the continual loss of invaluable that overload regional ecosys- human talent, continued social tems, jeopardizing health and estrangement, and ultimate con- safety. How to encourage less frontation. Despite racial prog- wasteful patterns of land use ress on several other fronts, the nation has not made impressive headway on this problem. 16Lowden Wingo at a meeting of National Growth Study Committee, Academy for Con- Conflicts in Values temporary Problems, Columbus, Ohio, January 31,1973. In the final analysis, many of the Coming Issues in Public Control Versus Property Rights

issues we now face in considering lapping and conflicting jurisdictions how we might shape the nation's and the regionalization of certain future growth and development are basic public services. rooted in conflicts between two or Yet in many cases, constituents have more sets of values. How we estab- shied away from such proposals at lish the tradeoffs we willingly would the ballot box either because they see accept among these values provides no particular gain in putting public the grist for political decision about services under the monopolistic the future direction of our national control of one public agency or be- and regional growth; for example, cause the new government would be equality versus competition. too remote and unresponsive to their Equality Versus Competition needs or because they feel their self- interest might be threatened by One of the basic elements of the becoming integrated into a larger American credo has been the right to community, the majority of members equality of opportunity. At the of which are not of their own kind. national level, and to a lesser extent at the state level, through legislative, Preservation Versus Development judicial, and executive actions we are Many of the actions which have once again redefining what we been taken in the area of growth mean by equality. These redefinitions policies at the state and local level in have important implications for the recent years have been taken in the kind of social objectives any growth name of environmental protection. policy might contain. Many Federal The bulk of public actions have been and state. actions in recent years have regulatory and negative in character; emphasized the maintenance of mini- they set forth what is not permitted. mum standards of equality. At the There is little exercise of affirmative local level, however, our emphasis powers to direct where something has traditionally been upon "com- should happen with the possible petition" or a free market, i.e., peo- exception of some instances where ple should be able to buy what they sites for power plants have been are able to pay for in the public identified. marketplace as well as the private Yet the nation has social and eco- market. nomic objectives which must be Centralization Versus weighed equally with environmental Decentralization and preservationist objectives. Debates over what must be done to To cite the extreme: if state after state adopts policies severely curtail- improve the quality of, and access to, ing further growth and development, public services and employment in what are the implications for future metropolitan and rural areas are Americans in terms of their freedom engendered by conflict between our of choice to live and work where values of "freedom" and "effi- they wish? ciency," or, if you will, centralization and decentralization. Public Interest Versus Proponents of regional government, Private Property consolidations, or multijurisdictional Few values have been more sacro- substate districts to replace the bal- sanct in the American value system kanized pattern of local government than the concept of private property. that exists in most metropolitan and Applied to the ownership of land, rural regions have traditionally that concept has passed through pointed to the savings and effi- ciencies that they believed could be realized through elimination of over- several distinct stages during our produced a distortion in metro- national history. politan growth and almost im- During the Colonial period, lands potence in our ability to attack belonged to the Proprietor of the regional problems such as pollu- Colony under charter from the King. tion, inadequate supply of decent After independence, lands not al- housing, proper management of ready deeded to private landholders the environment, transportation, became part of the public domain to and the like. be disposed of as the states or the The unrestricted grant of power Federal government saw fit. to local governments has pro- For most of the past 150 years, our duced in many cases incompe- objective was national economic de- tent planning, and in many others velopment and our purpose was to administrative processes which get land and resources into the hands run counter to many concepts of of as many settlers and developers as fairness and orderly procedure. possible to be tilled, or mined, or The concept of a "static master logged, or built upon. Once that land plan," i.e., a map representing was in the hands of private citizens, optimum civic design in its ulti- it was at first their right to do with mate form, has failed to guide land it whatever they deemed proper. But development because no legal sig- it soon became apparent that there nificance has been assigned to had to be some restrictions after such plans under most statutes awhile to protect all property holders and ordinances, and because the from the abuses of any single prop- concept itself is faulty since the erty holder. We entered the period of forces of urban growth and de- regulation when through a variety of cay are too dy namic to be ordered measures some control was exer- in such a rigid fashion. cised over the broad uses to which Ordinances enacted under exist- many property owners in cities could ing laws by a host of small but put their land. The ideological con- growing urban communities at the flicts over zoning and land use periphery of large metropolitan re- planning which ensued were bitter gions have been unable to deal ef- and deep. Yet in most of the country fectively with large scale develop- today these rather modest means for ment. "lndustrial parks," "residential regulating the uses of private land subdivisions," and "regional shop- inside of communities are readily ping areas" may result from existing accepted and judged by many to be zoning districts, but the relation of largely ineffective. industry to housing of the work force and the relation of each to a The Limits of Zoning whole complex of urban services Criticism directed toward the prac- such as schools, hospitals, day tices of local zoning and subdivision care centers, neighborhood shop- regulations have been aptly sum- ping areas, and the like are often marized by the American Law ignored-in part because the unit Institute: of government regulating devel- The attempt to guide development opment is too small to plan com- of land by prohibitions and re- prehensively for these services.27 strictions, without using the power of public acquisition and New Objectives disposition of land and the power Now the nation enters into a new of public spending to secure the chapter in its attitude toward land. desired development, is likely to The special pressures on the national be an ineffective method of order- ing land development. 27American Law Institute, "A Model Land The unrestricted grant of power Development Code," Tentative Draft No. 2 to the smallest unit of local gov- (Philadelphia: 1970). ernment (town, village, city) has Coming Issues in Public Control Versus Property Rights

environment which have followed attempts to control land use has 66 The special pressures on intensive industrialization and metro- been best summarized by Frederick the national environment politanization have brought about a O'R. Hayes, former Budget Commis- which have followed intensive still stronger public recognition that sioner of New York City: industrialization and metro- land is no longer an unlimited nor A development policy is as impor- politanization have brought unexpendable resource. There is a tant as a land use policy and, in about a still stronger public vital public interest in protecting fact, it is critical to a land use recognition that land is no certain vital land and water resources policy. The country needs hous- longer an unlimited nor unex- and the ecologies of certain fragile ing for an expanding population regions. Few local jurisdictions are and to rehouse the illhoused. It pendable resource. large enough to control the use or needs commercial, industrial, disposition of such areas. There is a educational, medical, recreational, tide of opinion pressuring state and and transportation facilities to Federal affirmative action (not just serve and employ the population. regulation and control) to identify It must economize on other re- where growth and development sources - energy among them - should and may occur and where it as well as land. It must deal with should not and may not. This con- the price and transport effects of cept of public responsibility is a sub- changes in land supply. stantial departure from our modified The point deserves underlining laissez faire traditions with respect with particular emphasis upon to private land development during housing markets. An adequate the last 100 years. supply of land subject to reason- Further, there is increasing recogni- able subdivision and construction tion that the public has frequently standards is crucial to expeditious been required to bear excessive costs progress toward the nation's for acquisition of lands that have housing goals. The effect of sub- appreciated substantially in market urban land use regulation and value because of nearby public im- land use for construction to date provements such as highways, air- has been a very substantial in- ports, mass transit lines, or water crease in minimum new housing and sewerage lines. It is also recog- costs. Even after adjustment for nized that traditional hop-scotch price increases, the threshold patterns of speculative private devel- income for entry into the new opment in metropolitan areas impose housing market has been increas- still other short and long term costs ing much faster than incomes all on the public that might be avoided over the country. through more affirmative public ac- In truth, in many areas of met- tions to channel and direct the devel- ropolitan development, we need opment of land. some decontrol of land to open It is well and good for us to exclude up clearly exclusionary zoning in further development in fragile areas. the suburbs and to provide a But it is equally incumbent upon us, feasible basis for large scale devel- under any policy for growth, to iden- opment. A restructuring of the tify where and how we shall develop present balkanized system of the housing, employment, services, land use control is necessary as etc., required for a growth population. is the use of a wide range of tools other than land use regulation. The underemphasis upon social and economic objectives in many recent 66 ~t would appear that, as ~t seems fair to say that, with a few Attempting to channel devel- in the past, the states are serv- rare exceptions, contemporary at- opment toward areas with ing as diversified laboratories tempts by states to shape and influ- greater residual "carrying ence their patterns of growth are capacity" for development; for testing new social, eco- generally negative in character, i.e., nomic, and environmental Attempting to protect fragile for the most part, they are intended and unique environments policies. to prevent development from occur- as well as areas of special ring in certain areas. public interest; But it must be presumed our future Establishing aesthetic and policies should be positive in char- health standards designed to im- acter as well. They should determine prove the quality of life in both what may and should happen as well metropolitan and non-metro- as deter what should not happen. politan areas. While state and local growth policies Objectives in Present Growth Policy Proposals have been preoccupied with environ- mental objectives so far, they are A pattern is now evolving out of the evincing growing concern with confused growth policy debate as a equalizing access to certain public result of Federal, state, and local services (now being redefined by the actions and court decisions over the courts), employment, and housing. past several years. For the most part, these efforts are We can discern a pattern of objec- addressed separately to the problems tives that can be pictured as a three of metropolitan and rural areas.2s legged stool. One leg is social policy, They cover a wide range of actions one leg is economic policy, and one from state assumption of respon- leg is environmental policy. The pur- sibilities for certain services, reforms pose of growth policy is to orches- in public finance, restructuring of trate the cumulative outcomes that local government, and the creation of flow from these policies. new instrumentalities to shape and States and localities that have direct the patterns of future urban adopted growth policies are trying to development. shape and direct the way the land Present State Actions and related resources are used to meet social arld economic objectives No single state has yet developed a and still be consonant with the objec- fully orchestrated set of policies. tives of environmental protection by: However, there are many instances Providing for more conserva- of innovation, bellwethers of a tive use of land, water, air, changing attitude toward our future energy, and material resources; national development. It would ap- Providing for the disposal and pear that, as in the past, the states elimination of pollutants and are serving as diversified laboratories wastes in ways that will mini- for testing new social, economic, and mize environmental disruptions environmental policies. and promote the re-use and Only Hawaii has found it practicable conservation of material re- so far to engage in statewide com- sources; prehensive land use management, Attempting to channel popula- perhaps because of its insularity tion growth and economic and particularly vulnerable ecology. expansion away from areas But Vermont, Maine, Florida, North suffering from environmental Carolina, and several other states overload; have enacted statewide land use control legisla tion. 2sSee"Experiments in Growth Policy" by The most comprehensive growth David K. Hartley, Milton Patton, and Ralph R. policy statement adopted so far by Widner with Lucia Findley and Patrick Peter- any state was a 1974 concurrent sillia, Academy for Contemporary Problems, Columbus, Ohio, 1975. resolution of the Florida legislature. Coming Issues in Public Control Versus Property Rights

With three-quarters of its popula- General Patterns of State Action tion living along the coasts, Florida Already some patterns are beginning is in danger of overburdening, pos- to emerge. sibly destroying, its coastal zone and interior wetlands. There are those states, pri- marily in the South and West, The procedural provisions of Ver- which face the problems of mont's new Land Use and Develop- rapid growth - frequently jeop- ment Act are perhaps the most sig- ardizing a highly prized envi- nificant of any enacted by any state ronment. so far. The act contains two basic There are basically rural states provisions: (1)a permit system close to metropolitan regions, regulating in a largely reactive man- such as Maine and Vermont. ner all private and public residential where similarly treasured rural developments of consequence and surroundings are threatened by (2) a planning system, largely pre- exurban expansion, recreational scriptive in intent, which calls for develovments, second homes, three kinds of land use plans. and the location of major indls- In 1970, the Maine legislature passed trial installations. a site location law and created a There are the older urban- department of environmental protec- industrial states facing declines tion which expanded the duties of in population and economic ac- the existing environmental improve- tivity as our birth rates drop and ment commission. The legislation national migration flows shift was motivated by proposals for sev- increasinglf toward the South eral mdjor oil terminals in areas of or West and away from the Maine where local governments had Northeast. not passed any land use regulations. Finally, there are those basical- The state, realizing how little protec- ly rural states that are isolated tion it had in coping with such devel- from the mainstream of national opments, enacted the 1970 law. commerce and which have al- The law sets forth the framework ready lost population over a assumptions of a state policy on protracted period of time and growth: now possess an "aged" thinly . . . that the economic and social dispersed population. Most of well-being of the citizens of the these states are in central State of Maine depend upon the Appalachia, the Upper Great location of commercial and indus- Plains, and along the more iso- trial developments with respect to lated sections of the nation's the natural environment of the northern border. state; that many developments be- States in the first two categories cause of their size and nature are have been the first to undertake the capable of causing irreparable development of a new generation damage to the people and the of policies on growth and devel- environment in their surround- opment. ings; that the location of such Present indications are that metro- developments is too important to politan areas in the manufacturing be left only to the determination belt of the Northeast-Midwest will of the owners of such develop- lose both population and their ments; and that discretion must be former economic paramountcy in the vested in state authority to regu- late the location of developments which may substantially affect environment. coming decades. It is significant that A cursory overview of research on over all metropolitan population the probable cause and effect rela- losses show up in the 1973 interim tionships between patterns of nation- Census survey for a belt beginning in al growth and national policy and Pittsburgh and continuing through programs leads to tentative observa- Cleveland and Detroit, yet few ac- tions that: tions have vet been undertaken in National policy has objectives these regions to cope with the pro- other than those embodied in found land use implications of aspirations for "balanced" accelerating urban neighborhood national development. For the abandonment and metropolitan re- most part, therefore, it has fol- structuring that are bound to follow lowed or reinforced growth and these demographic shifts. development trends rather than Just as the nation was not prepared attempting to consciously influ- socially or fiscally to deal with the ence them. social and economic conseauences National policy has reinforced of the rural to urban shift during the rather than ameliorated the im- first half of this century, so it ap- pacts of new technologies upon pears that we are currently illpre- the nation's patterns of pared for the coming alterations in development. the country's metropolitan structure. National policy has been re- And there are painfully few exam- active rather than prescriptive, ples of successful state land use i.e., it has responded to prob- actions to deal with the problems of lems after thev have occurred depopulated rural regions as well. rather than anticipating conse- Federal Action quences in advance. For the most part, ameliorative pro- To date, the Federal government has grams designed to mitigate the lagged behind states and localities in consequences of such problems, its response to these new conditions. have failed. Its actions have been guided more by Overall, it seems fair to say that the crisis than forethought. powers of the national government Yet study after study has identified are at their most potent when em- the role which Federal expenditures, ployed to influence the flow of public works, and regulatory activi- private capital. This has had some ties have had on the patterns of considerable influence on the pat- national growth.29 terns of migration and growth in the We confront the task of identifying United States whether through the the Federal decision levers having the outright procurement of goods and greatest effect on our national and services, through Federal expendi- regional development patterns. tures or through the aggregate effects It is perhaps a commentary on the on the national economv of fiscal pluralism of the American federal and monetary policy. system that we have never under- taken an overall assessment of the impacts of major policies at each level of government on patterns of national and regional development. All we have to draw upon are a few very general surveys and many eval- uations of specific programs.

290p Cit., "Regional Impacts of Federal Policy." Coming Issues in Public Control Versus Property Rights

The powers of the Federal govern- metropolitan people who for the ment have been least effective when most part are engaged not so much they attempt to influence the location in the production of food and fiber of population and economic activity and goods as in the consumption of through grant-in-aid programs. And goods and the provision of services except for the public domain, the to each other. Federal government exercises little In the judgment of many, we are influence over the specific uses of living what Garrett Hardin has land in the country. chosen to call the "Tragedy of the From all this, it is possible to con- Commons!" If a community has a clude that if we were to have a na- common green upon which all the tional growth policy, Federal respon- villagers are allowed to graze their sibilities could best be met through sheep, it is obviously in the interest the effective use of economic policy, of every villager to try and graze as Federal regulatory powers, and the many sheep as possible in order to establishment of minimum social and maximize his profit. But at some environmental standards that would point, the green can support no apply nationwide. more sheep and some new method must be found on the basis of which The Tragedy of the Commons grazing rights can be allocated.30 The vessels of government and It is on this presumption that many public finance we have constructed proponents for the development of over a period of less than 200 years national growth policy now base to provide for our needs are under their case! stress to meet the dramatically altered needs of a metropolitanized, land Ralph R. Widner is director of the hungry society with voracious appe- Academy for Contemporery Prob- tites for energy, food, and raw lems, established by the Battelle materials. Memorial Institute and Ohio State We now enter upon a new era in the University in 1971. Prior to assum- face of conditions quite different ing that post he served as executive from those that existed when our director of the Appalachian Regional great, great grandfathers conceived Commission, as staff of the U.S. the Constitution, developed our Senate Subcommittee on Employ- states, and marked off the bound- ment and Manpower, and as assist- aries and powers of our local gov- ant director of the Pennsylvania ernments. State Planning Board. He is author While their efforts were undertaken of numerous books and articles on in the context of an awaiting con- resource and economic development. tinental abundance of virgin re- sources, ours now seem to be con- strained by potential scarcities not just national, but global in mag- nitude. The issues that now face us arise from the dawning perception that we must find ways to constrain and manage the distribution of eco- nomic and population growth to comport with the limits of energy, food, materials, land, water, and clean air available to us. Today's questions arise in an economy and polity that has matured into a very different commonwealth from the 30GarrettHardin, "The Tragedy of the Com- land of yeoman farmers envisioned mons," in Exploring New Ethics for Survival: (New by Thomas Jefferson - a land of The Voyage of the Spaceship Beagle York: Viking Press, 1972). We Took Our Eye By Harlan Cleveland Off the Ball Director, International Programs, Aspen Institute for Humanistic Studies

In February of 1975, the institutions has produced a turn toward men on of the American nation, and es- horseback - usually updated by the pecially its plurality of governments, use of armored cars. But in the are the object of more grumbling nations such as ours, where people than at any time in the two centuries have gained the habit of thinking for of our durable democracy. themselves, the wide angle frustra- "Congressmen Find Voters Back tion has some chance of producing a Home Disillusioned and Disgusted," thoughtful introspection. The Times the New York Times headlined last interviewed a j.cI Penney executive Monday, on the transplanted birth- in Titusville, Florida, about his day of George Washington and Abra- Congressman. In other times, such a ham Lincoln. Americans are sore at man might have relieved his spleen inflation, at bureaucracy, at cor- by unloading on Congress, or the ,ruption - at too much of it, anyway President, or at least a local poli ti- - at being out of work, and at en- cian. Not last week. "It's not his tanglement in other people's wars. fault," said the executive. "It's every- At the same time, the general opinion body's fault. We took our eye off of the non-American majority of the ball." mankind is generating more inter- The beginning of wisdom is here: national flak at our expense than at We took our eye off the ball. A sense any other moment in the history of of destiny - a shared feeling that we our international relations. In the knew where America was going and recent international meetings about what it was supposed to mean to a "a new international economic watching world - held this nation order," we have been accused (by together for 187 years, provided the people who have benefited from our social energy to develop a continent bounty and attended our universities) and become the citadel of business of wasting resources, profiteering on enterprise, the opportunity culture, energy, building weapons we don't the polity of rapid and mostly peace- need, polluting the air and the ful change. A special sense of mis- oceans, feeding our babies too well, sion - a manifest destiny about what consuming too much ourselves, and it is to be an American - had been contributing to the poverty and part of our popular morale and our starvation of others. That there is political leaders' rhetoric ever since color of truth in these charges does John Winthrop observed in 1630 not make them easier to take: in that, because the colony of Massa- political polemics, it's the half-truth chusetts would be "as a city upon a that hurts the most. hill," she would have to conduct We Americans have a strong pen- herself, under the scrutiny of the chant for personalizing our likes and world, according to the highest dislikes. The Gallic shrug and the ideals. Russian clichC that mean something But beginning about a dozen years like "It doesn't matter; what can ago, a succession of traumatic experi- anyone do about it?" have their ences, seeming denials of what counterparts in most cultures. In Americans thought they meant to do ~mericawe want to find a scapegoat and to be, have greatly weakened and blow our poisoned darts at his this sense of destiny. Three political person. But governments and leaders assassinations, our first unwinnable can take special notice these days of war, an unprecedented White House a new mood: Americans are appar- scandal, the quite sudden sense of ently coming to believe that the prob- being unsafe on familiar city streets, lems are too big to be handled by the collapse of the dollar as the ordinary mortals, which they know world's key currency, the visible their political and executive leaders damage of industrial growth to the to be. environment, the new fusion of re- That mood in some other societies cession and inflation, sudden short- ages of food and oil, and the frustra- tions of global politics in a dis- wages, unemployment benefits, 66 You have been considering orderly world - each by itself might and legislative definitions of the how our federal system can be have provoked an orgy of national poverty line are contemporary made to work better, which is selfdoubt. Coming together, they efforts to quantify "enough." to say more equitably. Let's produced something like a certainty: A sense of equity - the indi- not forget to ask 'Why?' and that the strength and reach of vidual's feeling that he or she is American power, far from spreading being treated justly, not as our traditional values overseas, did measured by some ultimate or 'For 99 not even ensure their protection at universal standard, but as com- home. pared with the treatment ac- One way to get our eye back on the corded to other persons in com- ball is to think hard about what parable situations. government is for. One high official A sense of achievement - the who resigned from a White House individual's feeling that the job, early in the first Nixon Admin- group of which he or she is a istration, complained afterwards that part is making progress in some he had never sat in a meeting in generally accepted direction. For which the question under discussion people in organized society, was "Why?" high morale seems to depend You have been considering how our not so much on what goals peo- federal system can be made to work ple choose as on their shared better, which is to say more equita- feeling of movement toward bly. Let's not forget to ask "Why?" them. and "For whom?" A sense of participation - in deciding what those goals will Search for Equity be. Modern man (of whichever The search for equity is a big part of sex) needs to feel that he has the story of civilization. And in some control over his own modern times, a desire to be treated destiny and can influence the fairly seems to be the engine of basic decisions on which his change, the spur to upward mobility, welfare, equity, and achieve- the object of revolutionary violence, ment depend. the stuff of political leadership, the This enumeration of the needs of drivewheel of public administration. modern man assumed an awareness Any organized society must there- by the individual of his interdepend- fore be judged by whether and how it ence with society. It implied that he serves the most basic needs of the cares about his destiny and would human person. What are those not passively accept what fate or the needs? gods or foreign rulers or his own Once upon a time, with a group of family had provided in the way of young colleagues in the Washington environment. This is of course a of a generation ago, I tried to figure comparatively new state of mind for out what I thought were the basic most of mankind, dating in the West needs of modern man. Let's see if from the Renaissance and the Refor- they are helpful in the contemporary mation, spreading to the East context. through colonial governors, navies, A sense of welfare - a minimum armies, missionaries, traders, and standard of "enough" in ma- reformist politicians, all of them from terial living. How much is different motives stirring up ancient enough would of course vary societies by providing new wants to from society-to-society and from want and an exciting presumption of time- to- time. But at any moment change. in any society there could exist a The basic needs of citizens in any practical consensus on a mini- society can, of course, only be meas- mum standard. . . . Minimum ured in the light of their own expec- tations, in their time and place. so now as the non-white and the Words about desirable values work poor are beginning to be better the way the United States Constitu- represented in legal process. But we tion works - old words acquire new are still primitive in our efforts to meanings as they are applied to new express in law and practice the rights situations. When Americans were of individuals to the use of what poor, "welfare" tended to be quanti- they can only own and control in fied in dollars and calories and common - clean air and water, safe square feet of living space. "Equity" streets, uncluttered living space, focused on fairness in apportioning honest dealings with each other - material things. "Achievement" was and the right to a minimum standard measured by rungs on an income of privacy in the age of bugs and ladder. The urge for "participation" computerized dossiers. was to be fulfilled in decision making Equity between individuals and or- about economic status and oppor- ganizations has long been unbal- tunity. anced; civilization has "advanced" But in our latterday affluence, "wel- by favoring organizations, by treat- fare" extends beyond the quantity of ing them as people - and then re- groceries to the quality of life. lieving the real life people who make "Equity" picks up meanings in race the organizations' decisions of their relations and political arithmetic. personal liability for their actions. "Achievement" is reinterpreted to The doctrine of a corporation as a include life styles in which success person, born by an act of public in- cannot be measured in dollars or corporation which seems to have less political power. "Participation" and less to do with ensuring public broadens out to include many kinds responsibility, has to be high on any of community cooperation and inter- list of obsolescent clauses in the national consultation that used to be social contract. reserved for businessmen and law- Equity between "private" and yers from early arriving ethnic "public" organizations was unbal- groups, and for professional anced for too long in favor of private diplomats. organizations performing public Still, the people's question about tasks without representation or their institutions is the same: How public review. From time to time, well do the institutions provide for some scandal or outrage would the people's basic needs, as they see produce a Public Utility Holding their basic needs? Company Act or a Securities and Exchange Commission. But this kind Social fairness of adhockery is no match for the One durable American idea about our sensitive and important issues in- institutions - one of the balls we volved, for example, in the current took our eye off of - is the useful- deadlock of environmental and ness of checks and balances, the de- energy production interests. The sirability of devices that prevent any balance has now been redressed one person or group from gaining somewhat by a vigorous private en- too much advantage at the expense vironmental movement and the of others. Five kinds of social fair- growth of public interest law firms. ness are overdue for attention in our Now there is a problem of ensuring federal system. the public responsibility of private Equity between and among indi- citizens who presume to speak for viduals has been the subject of much the public as a whole; the growing lip service in the courts and schools costs of openness are threatening to of the law. Procedures in courts are swallow up its benefits. supposed to reflect "equal justice Equity between levels of government under lawH-and increasingly do has been a prime topic in the discus- sions at the unique gathering we have been privileged to attend here. We Took Our Eye Off the Ball

No magic solutions are available, but The Comptroller General should I have a strong hunch that a growing be put into business to act, as proportion of the public business is an agent of Congress, with the going to leak out of the national level full range of necessary powers of government - some of it into such as subpoena supported international institutions, and a great inquiry and prosecution of deal of it into regional, state, and executive agents in the courts. municipal government. The Supreme Court should It was sad that the sound rethinking be encouraged - or if necessary of practical federalism which pro- enabled - to interpret the law in duced the notion of revenue sharing timely fashion through advi- was distorted by the effort to use it sory opinions. as a disguise for budget cutting in social programs - and sad, too, that International Concerns the Presidential leadership required Building a federal system in which to make this good idea also popular all parts keep their eye on the same was drowned in its own corruptive ball and none gets too far offside reach for power. Let's get our eye would be hard enough if the United back on that ball, too: the idea of States could work out its destinv in collecting revenues at the Federal peace and isolation. But our new level and spending them in more de- effort to make our federalism work centralized ways is worth a better for people, and not against them, break in a different climate. comes just when most of the major Equity between the separable destiny decisions, affecting the life branches of government has been in- and health and future of every creasingly out of kilter. The claim of American, can only be arrived at by "national security" placed most of a complex process of la net wide Congress and the courts outside the bargaining. charmed circle of those who "need to So a sixth kind of balance our federal know" executive secrets. And on a system has to seek involves all those widening range of subject matter other people who aren't Americans especially in foreign relations and and don't want to be, but who also military affairs, the "separation of have basic needs and are increasingly powers" has come to mean separat- insisting on being treated fairly ac- ing Congress from the power to cording to their concepts of equity. make policy. The most important ball to keep in The new budget setup is a good first view is the biosphere. step in reversing the flow of power. Each of us has to face it now: Other such steps should follow in Present trends in population growth, quick succession, before the lessons urban inmigration, inflation, unem- of Watergate are mellowed by the ployment, food production and dis- passage of, and the dimming of, tribution, energy supply and de- memories. For example: mand.. vollution. of the air and of The claim of executive privilege, inland and oceanic waters, military buttressed as it is bv a wide- technology, restrictive ideologies, and spread system of security inward looking nationalisms, all classification, should be defined taken together, are clearly adverse to more specifically and interpreted the self-fulfillment of nearlv all more narrowly. human beings, and to the survival of The White House staff should a very large minority of the human be defined and established bv race. These problems are so inter- statute, and its members made related that action on any of them accountable "in another place" requires thinking about all of them. (Capitol Hill and the courts) for Even if commenced now or soon, the their actions, as distinct from reversal or control of these trends their advice to the President. will require enormous changes in order - not just faraway negotiators, attitudes and styles of living and will but whole populations are part of the also require a generation of time - scene. The collective behavior of say, the rest of the 20th century. individual Americans may indeed Meanwhile, shortages and the des- largely determine whether the en- peration and rivalries they intensify vironment's "outer limits" are irre- will provoke acute conflicts. The versibly breached, and whether arms available for use in these con- "minimum" human needs are met flicts, which are not only conven- worldwide. tional and exotic military weapons, No one who sat in line at a filling but also economic and monetary and station in the fall of 1973 can doubt psychological and biological and the intimate interconnection between meteorological weapons, will no faraway causes and highly personal longer be available to an oligopoly of effects. What is in doubt is the will- a few so called "powers." ingness of Americans to adjust their Somewhere near the center of these personal habits for faraway reasons multiple conflicts will be, as always, - we have done so on a national the ancient confrontation between scale only in wartime. rich and poor. Somewhere near the We can tell that our willingness is in center of a strategy for survival and doubt because so many American beyond will be a planet sized bargain political leaders still calculate that we that promises to define and provide are not prepared to do what they say basic human needs, and promises to in speeches needs to be done. They keep advanced societies from advanc- don't think we are yet willing to con- ing past prudent limits in using serve fuel, limit our appetites, revise scarce resources - to protect the only our economic expectations, or care biosphere we have. enough about starving foreigners to rescue them. (Other nations' One thing is certain about the global leaders similarly doubt their people's politics of the future: the United capacity to cope. The government of States of America will be there. Per- India is still reluctant to concede that haps you recall what George Bernard Shaw said when a young reporter food supply and population growth are disastrously out of balance.) asked him "How do you make a play?" It's simple, the great play- Coping with interdependence begins wright replied. In the first act the with wide public understanding of man says "I love you," and the the need for adjustments in practices woman says "I adore you." In the and policies we Americans have long second act the man says "I love regarded as essentially private, per- you," and the woman says "I adore sonal decisions - how much to buy, you." And in the third act the man what to eat, how fast and far to says "I love you" and the woman drive, how many children to have, says "I adore you." But how can whether to pollute, what to produce you make a play our of that, the and sell, how hard to work, what to young man wanted to know. It's aspire to. simple, said the old man. In each act Our capacity to rise to the occasion the man is the same, but the woman is partly a function of education - is different. what we learn about the realities of The drama of world politics keeps interdependence in school and col- changing - Korea, Vietnam, Sinai; lege, from the media, and from each oil, food, money - but the United other. It is also partly a function of States of America is on stage in each leadership. Americans were vaguely act. In the volitical bazaar where the aware in 1947 that things were dan- planetary bargains are struck, gerously awry in postwar Europe, Americans will be found bargaining but it took a stunning act of leader- in every boutique. Moreover, there is ship, the Marshall Plan, to convert a new condition of international We Took Our Eye Off the Ball

that general knowledge into a 1948 without much help from our major The complexity of our pre- plan to do something decisive about public and private institutions - dicament is such that no per- European recovery. national or local governments, son or small roup can be ef- But today, the prospects for man- corporations, trade unions, profes- fectively in ck arge, so all of us kind cannot be transformed merely sional societies, churches, schools, find ourselves partly in by the efforts and enactments of and colleges. American higher educa- charge. political leaders. The complexity of tion, for example, has only recently 99 our predicament is such that no per- been discovering the relevance to son or small group can be effectively general education of family planning, in charge, so all of us find ourselves the assessment of environmental im- partly in charge. The new require- pacts, the systematic analysis of con- ment is for whole populations to flict. How much faster could we develop the personal sense of direc- adjust if colleges and universities and tion, the world outlook, the feeling of other "leading institutions" were individual res~onsibilitvfor the col- leading, rather than following, their lective outconie, which bnly a few students in responding to the imper- leaders, educated in elite institutions, atives of interdependence? used to need. So the capacity to cope with inter- Is it unrealistic to suppose that mil- dependence is there, in our impres- lions of Americans can change their sively adaptable human nature. But minds about growth, about diet, it has to be energized - in the United about energy use, about family size, States and in other nations - by a about ~roductivity,about the very new kind of leadership. The best of purpose of life and work? the leaders that emerge among us in Of course it isn't. Consider the the next few years will be those who rapidity with which we are all be- understand that narrow nationalism coming aware of the new limits - an can be popular at the same time that ,, upper limit" to warfare which the it is inoperative. weapons of frightfulness have Charlie Brown is right, for most brought about, an "outer limit" to cases, when he says that "No prob- the physical capacity of our globe to lem is so big and complicated that it sustain human life, and a potential can't be run away from." But the "time limit" on the very existence of humanistic management of inter- the human race: we are the first dependence is the exception to his generation which knows that it is rule. It is not in the American charac- literally possible for our grand- ter to shrug and declare even the children or our great grandchildren biggest problem insoluble, or up to not to be there at all. some one else to tackle. As Charlie We can change our collective minds Brown also said, "There's no heavier in a hurry, it seems, when we know burden than a great potential." And we need to. Who would have the United States of America still has thought, in the 1950s, that attitudes the world's greatest potential - if we toward population growth would keep our eye on the ball. bring the United States below re- Harlan Cleveland is currently direc- placement fertility rates by the mid- tor, International Program, Aspen 70s? Who would have predicted the Institute for Humanistic Studies, charisma of the environmental move- Princeton Universitv." Prior to sew- ment? Who would have thought that ing in that post, he was president a war could be stopped, not by win- of the University of Hawaii; U.S. ning or losing it, but by a decision, ambassador; representative to starting at the grassroots, that it just NATO; assistant secretary for In- didn't any longer make sense? ternational ~r~anizationalAffairs, Yet these rapid changes in personal Department of State; and dean of philosophy and social action have the Maxwell School for Citizenship come about in a decade or two, often and Public Affairs at Syracuse under pressure from the young, University. The Future of Federalism By Daniel P. Moynihan Professor, Harvard University

Social prediction is the measure of work themselves out: the limits, social science and is deserving of the probabilities. A corollary exer- more sympathy and guarded respect cise seeks to form a judgmen t as than it has perhaps received from to which relatively quiescent situa- the putatively practical world. This tions of the moment are likely to latter point may be put in stronger become political issues of the near terms. It was said of the British in future. It is no great feat. In a their imperial days that they insisted chess master it involves consid- on respect but would settle for fear. erable in tellectual elegance, but The social sciences are in no position politics is mostly checkers. It is no to set the terms on which they will great thing to estimate the various treat the great world which is their possibilities for the next move subject, but, the extent to which that but one. relationship is influenced by friendly In evidence, I submitted 22 essays or hostile attitudes and expectations written over a dozen years, asking, on either side ought not td be under- in effect, had these not demonstrated estimated. As social science becomes some predictive value. The book was more technical, and hence less ac- on the whole well received, but this cessible to lay persons, the scientists theme was quite ignored, at least by are either going to be taken seriously reviewers. And yet I would rather or they are likely to set about casting have learned that my predictions all manner of evil spells in the form were quite wrong than to have had of forecasts of folly, futility, and ruin my attempt at prediction quite ig- which are at once too concrete to nored. Maurice Cranston has said of ignore and too complex to refute. Is politics that it is first of all an argu- it not, for example, now to be ex- ment about values, and second of all pected that those who were abused in an argument about the future, or, the 1960s for their findings of the more narrowly, "about the future relative weakness of various forms of consequences of proposed lines of social intervention will, in the 1970s action." I will contend that the and 1980s, repay their detractors by second set of arguments affects the systematically dismantling the as- first more than is generally seen. A sumptions on which the politics of society that is increasingly bewildered intervention was based during the by arguments about the future is middle third of the century? Rejected likely to find itself opting for values as establishmentarians - which they which emphasize certainty rather had thought themselves to be - they than chance. It is in this sense, for were probably now to become sys- example, that socialism represents a tematic subversives. kind of failure of capitalist nerve. As As there is enough subversion, I I shall contend elsewhere, the ironic would like to propose a more friendly effect of the beginnings of knowl- scenario, contending that mutual edge about social systems is for there respect is possible and fear need not to be a considerable increase in per- too much intrude itself into the rela- ceived ignorance: hence also an in- tions between those who manage the crease in the demand for greater cer- society and those who study it. In tainty. All of which may well account 1974, I published a book entitled for the general retreat back from Coping: On the Practice of Gov- freedom into regulation which is the ernment. My theme was that in curious seeming cycle of modernity. public affairs a certain, limited, pru- If this is only speculation, it concerns dential foresight was possible, and a significant enough subject to war- much to be encouraged. rant attention to the proposition that Intelligent observers can with we may be underestimating our effort acquire a sense of how ability to forecast.31 "See Daniel P. Moynihan, "Science Intro- political issues of the moment will Under the circumstances, I would duces Ignorance," The Public Interest, forth- like to persist in the perhaps hapless coming. cause advocated in Coping, under- others produce the very opposite taking here to examine the rather trends. Spotting the difference is more formal predictions concerning what much of prediction is about. American federalism which I pre- pared for the American Academy of Commission on National Goals Arts and Sciences Commission on Prior to the convening of the Com- the Year 2000 of which Daniel Bell mission on the Year 2000, the most was chairman. My short study was ambitious official effort to enquire completed almost a decade ago.32 into the future of federalism was the There have been considerable events President's Commission on National since, including most importantly the Goals, established bv President advent of general revenue sharing, a ~isenhower,which iublished its measure which will soon require re- report in 1960. The commission de- authorization, which will occasion sired to "ensure the dispersion of considerable debate in both specific power" - it endorsed the concept of and general terms. I will contend that "shared power" as the "key to the in the main these events could have miracle of effective democratic gov- been and were anticipated, from ernment of a vast and diverse coun- which it follows that American fed- try" - and implicitly recognized the eralism has been following a fairly trend otherwise by calling on an "in- regular course which will not easily crease in the financial resource of be reversed, or even very much state and local governments." The diverted. resident of the AFL-CIO dissented A note on method, or the absence of from this general position, contend- it, is in order. Fred Charles Ikle, in ing that the report at best "grudging- the volume of Daedalus in which the ly recognizes the role and respon- commission reports were published, sibilities of the Federal government noted that some predictions can be and, when it does recognize it, sees it based almost exclusively on logical only as a last resort." He wanted truths. Thus it may be said that if the the "superior resources of the Fed- birth rate in the world today does not eral government, collected through go down, the death rate must go up. fair, equitable, and progressive taxes Other predictions are "based pri- and administered through a truly marily on induction" (with the as- democratic structure . . . more greatly sistance, if we are lucky, of theories utilized." Mr. Meany, then as now a and lawsl.33 Obviouslv most social man of forceful views, was possibly science predictions are of the latter a bit severe on his colleagues. They variety, there being but few logical were if anything rather in advance of truths about society from which their time, and its administration, in deductions can be made. Nor are advocating greater Federal activity. there many theories or laws which (I will distinguish later between ad- inspire great confidence. The pre- vocacy and practice. The Eisenhower dictor depends on the persistence in administration did its share of cen- the future of regularities observed in tralizing, as did all the others of the the past. This mostly means extra- middle third of the century.) polating trends, but not always or Morton Grodzins was a consultant only that. Dialectical oppositions to the Eisenhower Commission on appear with a formidable regularity National Goals and prepared a pa- all their own, but that too is the per for it. He was not unsympathetic point. There is a regularity with to local government, but I believe it which some trends continue, and is no disservice to the reputation of a great and original scholar to say he viewed local in the con- 31DanielP. Moynihan, "The Relationship of ventional terms of the time, which is Federal to Local Authorities," Daedalus (Sum- mer 1967). 33Fred Charles Ikle, "Can Social Predictions be Evaluated?" Daedalus (Summer 1967). to say that it was the natural pre- functions and tax sources." A politi- serve of conservatism in America. cal scientist knew that this would This would not, of course, have been not happen. His summation of the the liberal view in Jefferson's time, prospects for enactment of the pro- and one may speculate whether in posals of the Joint Federal-State the interval local government had Action Committee would have served changed or liberals had changed. for its predecessors as well: "None of The view, in any event, had empha- them was, none has been since, and tically changed. Consider Grodzins' none is likely to be." (A scholar, list of the influential voices that help having assured a patron that his shape policy at that level of govern- most cherished beliefs were nonsense ment: "the Rotary club . . . the city need not rub it in, but Grodzins council. . . the Chamber of Com- could have noted that President merce . . , the mayor, . . . eminent Eisenhower, for all his fondness for citizens . . . political bosses." Only commissions, went ahead with the the latter was likely to have been a interstate highway program, the man of the people, and it was the largest public works program in the fashion of academe, then and now, history of the world, a program to have grave doubts as to whether which put a Federal stamp on every men of the people ever truly desire state and every urban area of the the good of the people. In a word, nation. Nothing comparable has none in Grodzins' catalogue could be occurred since. Mind, we should not expected to bring his influence to dismiss the possibility that some- bear for progressive purposes. He where at West Point or somewhere was in any event a political scientist along the line, Ike had learned that and tried to see power for what it if you mean to charge ahead-or was - and in this case where it was. bulldoze ahead-with your left flank, He saw which way it was moving in it is well to feint with your right.) the federal system: "in the balance Grodzins was in favor of getting of strength between the central and state governments to raise more ~eri~heralgovernments, the central taxes - specifically income taxes - government has on its side the whole by a device similar to that used for secular drift towards the concentra- legislation enacted during the New tion of power." Deal, which is to say for the Federal As a man of intellectual vigor, he was government to levy a tax which bemused to the point of acerbity by would go to the Federal fisc unless the foreordained futilities of the suc- individual states enacted identical cession of commissions established taxes. He thought the Federal gov- by Presidents Truman and Eisen- ernment might make this offset hower to reverse this trend - the scheme dependent upon periodic First Hoover Commission, the Sec- reapportionment of state legisla- ond Hoover Commission, the Kestn- tures, a considerable issue prior to baum Commission, the Joint Federal- Baker v. Carr. Obviously he was pro- State Action Committee. (The latter posing that the Federal government was not strictly speaking a commis- reform state and local government - sion. but it evolved into one. the not sharing its powers at all, al- Advisory Commission on Intergov- though "shared power" was his ernmental Relations.) Each, in vary- term, but exercising them in a deci- ing degrees, had worked to "separate sive and coercive manner. (As, with respect to reapportionment, the Supreme Court was to do only a half dozen years later.) The danger, in his The Future of Federalism

view, was "that the central govern- dent that if consigned to the "local LL Political scientists such as ment is doing too little rather than level" it would never be carried out. E. E. Schaatschneider had too much." He was all for a "mild Nationalization of Policy argued that in the American chaos" in the federal system, but federal system, groups that insisted that "The centrifugal force It was in this context that I prepared wanted change with respect of domestic politics needs to be bal- my paper for the Commission on the anced by the centripetal force of Year 2000. I asserted that there were to a particular issue of public strong Presidential leadership." four conditions - past events, if you policy in the main tried to move upwards the level of What Morton Godzins wanted was will - which would determine the John F. Kennedy as President, and of future of federalism. First was "the government at which that par- course he got him. And Kennedy, of nationalization of public policy," an ticular policy was decided. course, was followed by Johnson. event which followed from the This was because openness to The days of decentralizing were over, achievement of a genuinely national change was seen to increase or so it was asserted in the svmbolic society. If there were a goodly supply as one rose through successive acts of the time. It was simplv the of local problems, I wrote, there were - < levels of government. fact of the long preceding era of "fewer and fewer specifically local American life that for persons of 'subjects.' " 99 political sensibilitv.,. the state and Political scientists such as E. E. local levels of government stood for Schaatschneider had argued that in inertia, for insensibility concerning the American federal system, groups the needs of the time. There was a that wanted change with respect to a class bias of sorts in all of this. and a particular issue of public policy in certain inconsistency. (The term the main tried to move upwards the "political boss," for example, was level of government at which that clearly pejorative. Yet what that van- particular policy was decided. This ished American was accused of was was because openness to change was having accumulated enough power seen to increase as one rose through in one place to make things happen successive levels of government. In the way he wished them to happen.) the past, this presumedly had been Kennedy was not insensitive to either one motive behind the efforts ex- of these deficiencies in the fashion- pended on governmental reorganiza- able doctrine of his period and his tion, notably the consolidation of following. He once got John Kenneth urban areas. I contended that if local Galbraith to send a letter to The New policies were more and more to be set York Times suggesting that the big at the national level, there would be city bosses had in fact been the less and less of this pressure, save in sponsors and patrons of much of the the area of education. for the trans- progressive legislation of the first lation - to use that word in its older half of the 20th century. But this was meaning - was still incomplete with a minority - one is tempted to say a respect to some issues, notably race politician's view. Political scientists and education. But the trend was such as Roscoe Martin labored hard irreversible. This meant that state and not unsuccessfully to demon- and local governments, and special strate that the "grass roots" of purpose governments such as school American tradition were places of districts, would inevitably be follow- formidable immobilism, while public ing Federal policy direction in the servants such as PauI Appleby pa- years ahead. And as a result, in the tiently annotated their own experi- future, those who wanted policy ence that when the argument was change would less and less find advanced that such and such a gov- ernment program was no doubt a good one but ought to be carried out at the "local level," one could be near to certain that the individual or interest advancing the argument, first, did not think the program was a good one and, second, was confi- themselves pursuing this objective revenue sharing by local government under the banner of charter reform officials suggests that the near half- or metropolitanism or whatever. If century old Davis-Bacon provisions you consider the extraordinary ener- have had as much or more impact on gies devoted to such issues in the local practices than their more up-to- first half of the twentieth century, it date successors. may be agreed that if my contention Rise of Federal Fisc was correct it marked a considerable change. And have not such move- The second condition I cited concern- ments greatly receded? (Those who ing the future of federalism was the argue that ethnic sensibilities have "rise of the Federal fisc as the pri- intervened are, in my view, simply mary source of discretionary public being insensitive to the ethnic sen- expenditure." Convention has it that sibilities of the past.) In a word, the this is owing to the superior revenue singular structure and seeming chaos raising potential of the national gov- of the American federal system faces ernment, and it does seem that this is no serious challenge in this period. the de facto condition. In 1950, state Schaatschneider's law continues in and local government spent 7 percent effect in the sense that groups press- of the GNP; by 1974, this had grown ing for active social policies much to only 11.6 percent, excluding in refer to do battle in Washington. both cases Federal grants-in-aid. By This is logical enough. It is only contrast, Federal expenditure grew necessary to fight one battle in from 14.3 percent of GNP to 21.4 Washington: 50 in the states: 236 percent. As a portion of Federal in the city councils of municipalities expenditure, grants-in-aid all but with more than lo0,00o population. quadrupled, growing from 0.8 per- Hence, the AFL-CIO successfully cent to 3.1 percent. (Note, however, prevented the proposal of revenue that state and local expenditure as a sharing when it first "surfaced" proportion of GNP increased by two under the Johnson Administration; thirds during this period; Federal and comparable groups are rather expenditure increased only by half. disapproving of revenue sharing None should doubt the vitality of today, now that it has been enacted subnational government; but sheer and must be reauthorized. But this size gives a primacy to the national seems in part a lag in perception. fisc.) The policies such groups are con- Much of this, we are told, derives cerned to advance are set at the from the greater power of the gradu- national level and routinely attached ated income tax to generate revenue, to programs of aid to lower levels of and obviously this is in part the case. government. Witness the quite But states have income taxes nowa- elaborate provisions concerning civil days - adopted voluntarily - and in rights and such issues which were the first half of the 1970s, many ex- attached to the State and Local Fiscal perienced substantial revenue sur- Assistance Act of 1972.34 pluses. BUt few took initiatives asso- The point to stress is continuity in a ciated with expenditures. One cannot trend. If Congress attached civil easily imagine the equivalent state "The Revenue sharing bill: the contention rights conditions to revenue sharing, university systems being built in the will be made that these provisions are not it also attached the Davis-Bacon Act, years ahead. This is not to deny state rigorously enough adhered to, and such a con- that monument to the propensity of initiative. It can be considerable. In tention always deserves a careful hearing. Yet the 1940s, for example, a number of in the large, the fact of Federal conditions is the Hoover administration to subvert the important one. Imagine such provisions the independence of local govern- states led by New York enacted dis- being attached to the Surplus Distribution ment by bending to trade union pres- Act of 1837, when Congress divided up a Fed- sures in Washington. This act, it will eral surplus and distributed it to the states. be recalled, requires local govern- No strings were attached to what the states might do with the money, and indeed one state ments expending Federal funds to divided its share and distributed it to its pay "prevailing" rates of wages. A population. random survey of comments on The Future of Federalism

ability insurance programs at a time Federal expenditure on domestic when the Federal government - Con- programs." Certainly there is no gress - was near immune to such evidence that this is to be anything thoughts. More recently states, led in but an enduring aspect of federalism. this instance by Massachusetts, have In 1969, as Assistant to the President adopted no fault automobile insur- for Urban Affairs (a post, as I have ance well in advance of national written, which I was the first to hold action, and indeed, by any reasonable and hopefully will prove to have judgment, precipitating it. Policies do been the last), I was associated with rise in the federal svstem, albeit that the proposal of the two more impor- few political scientists writing today tant measures affecting federalism of would call attention, as Grodzins did the post war era: a Federal guaran- in 1960, to the number of governors teed income and Federal revenue in the United States Senate as evi- sharing The distinctive quality of dence of the impact of local concerns both these measures is that thev were on national policy. If pressed, the not grants-in-aid. Family assistance, professor of government today is as it was known, would have pro- more likely to suggest that governors vided income directly from the Fed- are sent to Washington - when they eral -government to the individual. are - to see if they can't get the Revenue sharing was to be without national government to do something strings. These measures, it will be that obviously the state government recalled, were proposed jointly in a can't do. Presidential address in 1969, along In the mid 1960s, the case that the with a third measure to greatly de- Federal fisc had become the "primary volve the Federal administration of source of discretionarv. public. ex- the manpower programs that had penditure" was certainly bolstered grown up in the 1960s. There was a by the then current concern about harmony to these measures taken as "fiscal drag" which is to say, the a whole, and a certain theory of gov- doctrine - for it had a doctrinal air ernment behind them. On the one about it - that the Federal tax struc- hand, the Federal government was ture was such that revenue tended to giving money directly to individuals, flow in faster than expenditures to do with as they liked. On the flowed out, thus depressing eco- other hand, it was giving money to nomic growth. It was then becoming state and local governments to do a point of principle for Federal ex- with as they chose (given compliance ecutives to find new ways to spend with constitutional mandates about money. Those days, for the moment, non-discrimination). Simultaneously, seem past, but the events that fol- and in between these opposite ac- lowed seem only further to confirm tions, it was giving state and local the assertion that initiatives now governments more say so about a come from Federal funds, for we see large set of programs recently that when revenues run out, the Fed- launched in Washington. The idea eral government cheerfully and con- was to increase the options both of sistently incurs a deficit. The deficit, individuals and of institutions. Yet for fiscal year 1976, as an example, is the proposals were only partially suc- likely to be almost as large as the cessful. The general guaranteed whole of John F. Kennedy's budget. income twice passed the House; but in the end, the Senate would not have Federal Grants-In-Aid Third, I asserted that "the tradition of decentralization and the fact of federalism is greatly inducive to the grant-in-aid as the principal form of Participation in govern- it, or rather would not risk voting on tion and consolidation, and the ment is a good which Ameri- it. (A guaranteed income of sorts, the grant-in-aid will persist. Supplemental Security Income pro- cans actively seek, especially Citizen Participation as they become more educated gram, was, however, established for older and disabled persons.) The last of the conditions I posited and have more discretionary for the future of federalism was per- time and resources. What is called revenue sharing was enacted, but not as an automatic pass haps a more novel one and may even through of a certain percentage of now find difficulty of acceptance. I Federal revenues to other levels of wrote that "the diffusion of the government. Rather it emerged as a middle class ideal of participation in fixed annual appropriation to be dis- public decision making will add a tributed for general use, but with considerable and, in a sense, un- eight "priority expenditure cate- anticipated utility to the complexity gories" in the "operating-mainte- of the American government struc- nance" area, and another such list ture, which requires such great for "capital expenditures." The citizen participation to operate." This change in the manpower programs was an assertion more or less directly was more successful, but it was al- opposed to the critique of American ways contemplated that this would federalism that underlay three gene- remain a grant-in-aid program. And rations of government reform move- so at most a partial success may be ments calling for the installation of claimed, and even that is not certain, professional city managers, metro- for in the process of considering wel- politan consolidation, and such like fare reform, Congress added all measures of rationalization. In effect, manner of gratuitous and even I stated that participation in govern- onerous conditions to the continued ment is a good which Americans ac- receipt by state and local government tively seek, especially as they become of Federal grant-in-aid for the relief more educated and have more dis- of needy persons. I would thus cretionary time and resources. Ob- testify from experience that the viously this has proved so. Espe- tenacity of the grant-in-aid procedure cially in the later 19605, far from is as formidable or more so than that seeking to simplify federalism, which I described in 1965, adding Washington actively engaged in cre- only that Morton Grodzins was ating whole new layers of govern- wholly correct in identifying the ments, semigovernments, paragov- Congress as the primary advocate, ernments, and even antigovernments. and presumed beneficiary, of this No single event was as revealing, arrangement. Them as raises the perhaps, as the creation of the com- money spend it: preferably in dis- munity action programs in the "War crete amounts that may be an- on Poverty" where participation was nounced regularly, district-by-dis- viewed openly as a therapeutic: not trict. And that is about all there is to only a right, but a remedy. It was say on the subject, save to note the prescribed for the poor. This devel- periodic seizures of real or feigned opment took on considerable dimen- alarm at the growth of centralized sions. Witness the extraordinary fall power which result in predictable - out of the National Environmental and short lived - schemes for con- Policy Act of 1970. All of a sudden, solidation and decentralization. In the most seeming simple acts of this connection, I wrote in 1955: government became subject to the This maze of programs will pro- most exhausting scrutiny by citizens duce periodic efforts to collapse who chose to concern themselves activities into larger, more general categories, but the process is likely to be one of alternating prolifera- The Future of Federalism

with the matters at hand, and formid- level of government). There is no able numbers chose to do so. A fur- ethnic "group" that can't find some ther event occurred in 1973, when the office to which one of its members U.S.Supreme Court ruled that citi- can get elected or appointed, if it so zens had legal "standing" in court desires. Most find many, or at least on environmental issues affecting a sufficiency, and some, at a certain the public as a whole, and as such point find a veritable plethora. Here could sue. again one encounters a further un- There is of course a price paid for suspected utility. The diffusion and this. After asserting that participa- complexity of government power in tion would become an ever more the federal svstem is such that few valued product of government, I offices are that important. Hence, the wrote in 1955: process of ethnic succession is eased. This is not to say that government Those "in" do not that much mind will become more efficient as the stepping aside for those "out." The "quality" of the electorate im- "ins" know that not that much is at proves and the proportion of per- stake, really. sons taking an active part in pub- Those who might tend to underesti- lic affairs increases. The opposite mate the value of this opportunity might- well be the case: the more rich system may wish to contem- persons involved in making a plate the hard history of Northern decision, the more difficult it Ireland over the past half century. A becomes to reach one. perfectly democratic system has been This process is cruelly in evidence in in place there, but it has been a Cambridge, Massachusetts. A decade British democratic system, which is to ago that community, acting for, and say a unified system in which the in a sense with, the nation, resolved majority in Parliament possesses all to build a memorial to John F. Ken- power, sharing it not at all with the nedy to be associated with Harvard minority. This works well'enough - University. A decade later it is clear some say it works incomparably well - when there is a recurrent transfer the vroiect. , is all but dead. It has been killed by citizens exercising powers of power as broad based political and acting for organizations that parties win and lose their parlia- mentarv maiorities. But in a situation scarcely existed when John F. Ken- J, nedy came to the Presidency and of confessional varties - ethnic vowed to get America moving again. parties - of which one possesses a Well, his memorial never got moving numerical majority, under a British at all. system the ins are always in and the outs are always out - and the outs Were I rewriting my 1955 paper I have nothing. Consider and contrast would, if anything, expand the em- the profusion of offices and, indeed, phasis on participation as a product of powers, which a political minority of government, noting especially its can obtain under the American sys- importance in a multiethnic society tem, especially where that minority such as ours. The symbolic impor- is a majority with respect to a par- tance of representatives of ethnic ticular unit of a multilayered gov- groups attaining elective or appoin- ernment such as a county, or a city, tive government office has been but or even a ward! Certainly the years little studied.35 since 1965 have seen this process And. of course. these events are sub- dramaticallv at work. Federalism stantive as well. And here once more makes for an opportunity rich we see the utility rather than the dis- politics. This includes opportunities 3eeDaniel P. Moynihan and James Q. utility of complexity in the American for new groups to enter the active Wilson, "Patronage in New York State," federal system (and, similarly, the American Political Science Review (June part of the political system. More 1964). Also, Nathan Glazer and Daniel division of powers within any given accurately stated, it came to seem p. MoyNhan, Ethnicity: Theory and important to educated and higher Practice (Cambridge, Harvard UN- cla'ss groups who in the past Lad versity P;ess, 1973. tended to deplore it in the working excluding education, came to 1.7- class politics of the great cities. But million. Local employment, excluding the politicians, as one of them put it education, 3.6-million; state and local at the turn of the century, had only education accounted for 5.7-million. seen their opportunity and taken it. Since 1960, Federal employment has In this case, it was the opportunity to increased by a quarter to a third; build coalitions by taking advantage state employment has gone up by of the profusion of offices under fed- half; local employment has gone up eralism to reward ethnic groups. by two thirds. Education employment Now in the 1960s, this practice came has doubled. In the future, we may rather to be celebrated by those who expect that Federal funds will play a had previously deplored it. One may yet increased role, but also that this make bold to say that those whose wide at the bottom, narrow at the avocation it had been to improve top pattern will also increase. It is at American government commenced least likely that government under a to learn something about the tech- variety of pressures will increasingly niques that keep it from collapsing. be in the business of deliberate job Thus, having a decade ago, set forth creation. Presidents at the top of the these conditions in which it seemed system will want this policy, but they the federalism of the future would will want the results to show up at develop - as seen in the perspective the bottom of the svstem. As we run of the Commission on the Year 2000 out of school children, for example, -I then made bold to announce "Six we will find ourselves creating an- Themes for the Last Third of the other year or two of school - "pre- Twentieth Century." Let's look at school" - which will provide jobs for how these hold up, not quite a third teachers. The money will be mostly of the way through that third. Federal: the jobs mostly local. I. Wedding Cake Federalism 11. New Varieties of Government Varying the image of "marble cake Because, 1 wrote, "multipurpose federalism" which several political metropolitan government is not like- scientists used to describe as the mix- ly to emerge, special purpose govern- ing up of functions between the ments are likely to multiply." There putatively separate levels of the fed- is no census of special purpose gov- eral system, I contended that none- ernments, and so no hard data come theless "a multitiered system of to hand on this point, but other evi- bureaucracies and government ac- dence suggests that the trend con- tivities" was assuming permanent tinues. In this respect, I wrote that shape, surmounted by the person of "the lines of authority and com- the President (and increasingly the munication within the federal system person of the First Lady as well)." are more likely to assume a triangular This pattern holds: it even becomes form in which each government has more pronounced as the growth rates direct relations with the other two of expenditure and employment at clusters of public activity." Here we the lower levels of the federal system encounter the overwhelming case of continue to be generally greater than revenue sharing. In their fine new those higher up. From 1950 to 1974, book, Monitoring Revenue Sharing, as noted, Federal expenditure as a Richard P. Nathan, Allen D. Manvel, proportion of GNP increased by half, and Susannah E. Calkins show that but that of state and local govern- revenue sharing as first proposed in ments by two thirds. In 1973, Fed- the 1960s was a scrupulously proper eral employment, excluding defense, Federal program: one level of gov- was 1.7-million. State employment, ernment would assist the level im- mediately below it, and that would be %RichardP. Nathan, Allen D.Manvel, and that.% But, they note, as the discus- Susannah E. Calkins, Monitoring Revenue Sharing (Washington, D.C.:The Brookings Institution, 1975). The Future of Federalism

sion continued into the late 1960s, to bring an end to the racial isola- both Walter Heller and Joseph A. tion of Negroes in public schools Pechman, along with the Advisory by establishing metropolitan Commission on Intergovernmental school districts that encompass Relations, advocated that "any both the central city Negro areas revenue sharing arrangement should and the white suburbs. specifically direct a portion of the Clearly I was wrong here in the sense funds to principally urban local that such a movement is not notably governments." A cutoff point of in evidence. Instead, a somewhat dif- 50,000 population was thought rea- ferent movement developed, that of sonable, involving fewer than 800 busing for racial integration, but jurisdictions. In 1969, when revenue withal a movement directed specif- sharing was first actually proposed, ically to this issue. Busing has en- this was the outcome contemplated. countered opposition, of course; but But in the end. a far more detailed metropolitan reorganization always system was enacted. Two thirds of encounters opposition. It may be, the shared revenue went to 38,000 however, this opposition will direct local governments. Nathan and his efforts back to a more formal metro- colleagues assert that politanism. The theme will continue it seems likely that only a minor with us. fraction of all the local jurisdic- tions that now receive shared IV. National Social Accounts revenue had ever before received In the middle third of the 20th cen- grant funds directly from the Fed- tury, I wrote, with an innocence so eral government. profound as to defy embarrassment, In all, they conclude, the measure "the most powerful development in "departs much more substantially government was the emergence of a from traditional American federal- political economy capable of compre- ism." I would only add that it does hending, predicting, and directing not at all depart from the second economic events." I proposed that theme of my 1965 paper. the most powerful development of the last third of the century would be 111. Metropolitanism in Educatibn the emergence of a social science Education (and educators!) have for coupled with and based upon a long been quite the most flexible system of social accounting that level - or function - of the federal will give government an enlarged system, expanding, contracting, capacity to comprehend, predict, multiplying, diminishing, from one and direct social events. . . . It will generation, even one decade, to be imperfect, but serviceable. In another with unmatched adaptability one political climate this may take and, one may say, grace. In the the form of controlling society. In main, the trend has been to fewer another it may produce a govern- units and larger jurisdictions. mental system more effectively re- (President Hoover's Commission on sponsive to the wishes of the Recent Social Trends noted that in electorate than any society in 1926 there were 25,000 fewer public history. . . . At present, the social school buildings than there had been sciences are extremely rudimen- in 1916). In 1965, I suggested that tary, and the likelihood of a major despite a growing interest in "de- breakthrough is small. Indeed, the centralization" in "very large urban districts" there were still gains to be had from further mergers. In the event that no significant measure of integration occurs in housing in the near future, there are certain to be growing demands major discovery of the next gen- Why could this conclusion be said eration may be that such develop- to have been predictable? Because ments are impossible. But it is anyone familiar with the data knows certainly probable that sheer that the United States already spends lack of information will have less a very good sum on health services, influence on events in the future and that our health in consequence is than it has in the past, and that quite good. Success! Yet, the recent will make a difference in out- tendency has been to be annoyed by comes. such findings. Alexander at the This theme has been much in evi- Indus wept to think there were not dence since, although with conse- more worlds to conquer; and we may quences not everyone anticipated. It yet prove his heirs. (One may specu- was, for example, a practice of op- late whether this frustration is not a timistic policymakers of the mid source of the relative inability of the 1960s to ~rovidefor the evaluation United States, and of the West, to of the social programs then being evoke ideological allegiance, when far inaugurated in such profusion. In less successful societies such as the the main, these evaluations have had Soviet Union do. Is it that being less a depressing effect. Results were scientifically developed - and less never so positive; never so emphatic scientific - they can still think the as had been hoped for and expected. future holds wondrous things? David Riesman epitomized the se- Chiliastic movements live in the quence: "Innovation and euphoria; future. The contrast is notable. For evaluation and despair." It should half a century new nations have not be thought, however, to be an desired a future different from ours. experience to the 1960s. It Yet individuals who desire to im- has been with us for some time and prove their situation in the present, will continue to be. Our society has migrate by the hundreds of thou- had so much success, it has done so sands to the United States - as many many of the things that can be done, as we will take. How many migrate has conducted so many natural ex- to the Soviet Union!) But whatever periments that not much that is new the consequence, social accounting is is readily discovered or unambigu- increasingly an aspect of public ously desirable. But this need not affairs in the United States. With occasion quite so much gloom as evi- respect to government programs, it dently it does. As an example, recent- has assumed a role of presumptive ly, in the New England Journal of normalcy alongside the financial Medicine, Joseph P. Newhouse, audit functions of earlier years. We Charles E. Phelps, and William B. now publish an annual volume of Schwartz published a quite striking social indicators compiled by the study, "Policy Options and the Executive branch: Congress has Impact of National Health Insur- greatly expanded its staff support in ance." One of their conclusions was, this area; while a small, if nervous, I submit, predictable enough. industry of social science firms has Realistically, then, policymakers grown up to provide design and eval- must recognize that even a sub- uation services to various levels of stantial investment in delivery of government, much as engineering more health services is not likely firms earlier on were established to to produce any clearly measurable advise on, and design, public works change in any dimensions of projects. health, whether length of life or Still, there is a suggestion here for physical well being." federalism, or at least I came to think so as these findings began to accum- 3'Joseph P. Newhouse, Charles E. Phelps, ulate in the late 1960s. The case can William B. Schwartz, "Policy Options and the Impact of National Health Insurance," New be made that government activities England ]ournu1 of Medicine, Voi. 290, No. 24 whose function is well understood (June 13,1974). are most appropriate to the national The Future of Federalism

level; whereas the more personal and One could only agree, and the evi- elusive programs are best located dence is hardly contrary. One of the further down where modest success curious twists of recent past is that or even, where such is the case, fail- in the 1960s much of the "left" in ure is sufficiently fragmented as to America adopted many of the tradi- threaten national morale, or seem to tional positions of the "right," ar- indict the whole of the social and guing for government close to the political system. In days of un- people, close to the grass roots, far ambitious government, this was not a from corrupting temptations of pow- subject students of federalism need er. The Johnson Administration said have given great heed to. But I sub- it believed this. The Nixon Adminis- mit that the experience of the 1960s tration said it believed this. The Ford commands our attention. I would Administration will surely say the suggest, for example, that the Voting same. But with small consequence. Rights Act of 1965 - and the social Nisbet wrote carefully when he sug- accounting in the form of voter par- gested that the quest for community ticipation data that has followed would be a dominant theme of the from it - was a s~lendidexample of century: a quest as for the Holy appropriate and effective national Grail. Never ending. In modern so- legislation. The Safe Sreets and cieties power concentrates. Indeed it Crime Control Act of 1968 was, by could be argued that in recent years contrast, poorly advised. The Fed- the Federal government, seeking to eral government knew nothing about enhance something poorly under- crime prevention that was not known stood called community, has in fact at other levels of government, and impaired something quite adequately the record should be clear enough understood - namely local govern- that it has not done much about it. ment." By establishing competing Which is to say that little has hap- paragovernments with access to pened that wasn't going to happen local funds and proliferating admin- anyway, except that we are spending istrative and court procedures for more. appealing, protesting, and frus- trating decisions of local officials, the V. The Quest for Community Federal government has contributed One of the striking themes of the to the steadv diminution of the 1960s was the spread of concern capacity of local government to act. about alienation in society and rising As this capacity diminishes, the prestige of localism. In his book, value of this most important of all The Quest for Community, pub- local communities diminishes also. lished in 1953, Robert A. Nisbet In 1969, when revenue sharing was wrote that "Schumpeter, in his great first proposed, its most important book Capitalism, Socialism and feature, to my mind, was that no Democracy, wrote that one of the program obligations went with it. flaws in capitalism is its inexhausti- One recalls Dr. Johnson asking ble capacity for alienating the intel- Boswell to lend him a shilling "not lectuals." Nisbet judged that the situation had got by then to the point where the quest for community, the effort to overcome or prevent aliena- tion, had "become the dominant social tendency of the 20th century." 38A1975 article on the dispute over the re- newal of revenue sharing notes among the objections to it: That freedom given to mayors and others has prompted part of the criticism of revenue sharing mostly from community organizations that assert they have little or no say on how the Federal largess is used in their areas. LLIt is reasonable to expect to be repaid." This was to be money zins described at very least persists. that the quest for community for local government to spend on Further, it is reported by talented things it thought to be significant. writers such as Neal R. Peirce, and will continue as a theme in Unless important choices are made studied by scholars of the quality of American life and hence in by local government, local govern- Daniel J. Elazar at Temple Univer- American federalism, and that ment itself will not be seen as impor- sity's Center for the Study of Fed- it will continue as a counter- tant. But as has been noted, Congress eralism. (One may note the welcome vailing influence to centrali- in the end did not choose to set appearance of Empire State Report, zation and uniformitv, a force, priorities and attach conditions to a journal devoted to the affairs of as it were, for revenue sharing much as to any cate- state and local government in New gorical program. If, as is likely, York.) It is reasonable to expect that 99 revenue sharing adds momentum to the quest for community will con- the proposal to establish a unified tinue as a theme in American life and public sector budget for all govern- hence in American Federalism, and ment, then it would probably have that it will continue as a counter- to be judged that the net effect will vailing influence to centralization have been yet further centralization, and uniformity, a force, as it were, for surely such a budget implies that for paradox. increment to central control that Clearly, however, the power of the seems to accompany enlarged infor- Federal fisc can be ruinous in this mation gathering. regard when wielded unthinkingly. Here, as in so much that attends Surely the most remarkable form of American federalism, trends seem to political community to arise and to run counter, one to the other; out- persist in America is that of the comes seem always somehow para- political party. But what will be the doxical. There is no data to suggest effects of the recent Federal decision that "community" in America is to finance Presidential primary and eroded. Statements about commu- election campaigns? Will party dis- nity have a certain palindromic appear in the turmoil and confusion quality, running equally well in both of Federally financed campaigns, a directions, for to assert the decline of demise which even David S. Broder community is to evoke its persist- in his study, The Party's Over, did ence, and to assert its persistence is not foresee? A political scientist to voice a concern that verges on the might well question whether any- acknowledgment of decline.39 The thing describable as national politi- question of religious community is cal parties will survive this usurpa- an example. In 1890, 34.4 percent of tion of function. Perhaps this exag- the American population belonged to gerates. Hopefully it does. But there a church. By 1965, this proportion is little in the record to suggest that had near doubled to 64 percent. By this was thought to be a serious con- 1972, it had declined to 62.9 percent. sideration when the decision was What then is happening? Similarly, made to use public monies for a for all "revenue sharing" extended function which for two centuries Federal "controls" to yet more remote had been sustained by private reaches of the federal system, in that monies. One understands the deci- very process it considerably en- sion of French rationalists that the hanced the ability of the last 10 or state should provide the income of 39It is not such an argument, and the matter 15,000 of those "general purpose the churches there. Was this a simi- of fact way in which it is reported, evidence of governments" to resist moves to lar decision? Of course it was not. the degree Washington organized quest for But who considered that it might community served to delegitimate local govern- consolidate and rationalize the maze ment. Who but the mayor and his council is of local jurisdictions that persists in have a similar effect? supposed to dispense public funds? Do they the system. Thus centralization pro- not represent the community? If they do not, duces decentralization, and the who does? How are they to be identified? "mild chaos" which Morton Grod- Of course there is a venerable tradition of the college educated in American cities to assume that those elected to public office are somehow not truly representative. The Future of Federalism

VI. The Rediscovery of the Market programs to housing allowances On this final theme I wrote: have come to little or nothing. To the contrary, government direction As government tries to do more, it grows. One must conclude that the will find it accomplishes less. This logic of Lindblom's argument has amohnts to the d&covery that not been found compelling. I must administrative ability is not a free conclude I have proved mistaken in good, and in the absence of it the the last of my six themes for the last best inten tioned programs can third of the 20th century. turn out to be calamities. . . . Moreover, as "easy" problems are Why is this? The most I can say is that my last theme was the only one disposed of, the more marginal, in which I dared to predict that intractable ones come into prom- inence, and the return on gov- events would commence to move dif- ernment efforts manifestly di- ferently from the way they had been moving. The five first themes were minishes. All this is likely to lead well established at the time I wrote, to what Charles E. Lindblom has even though not everyone noticed termed the "rediscovery of the this, or wished to admit it. The sixth market" as a means of accom- plishing social objectives. theme was not. I chose it nonethe- less - lastly, to be sure - because it ~indblomhadargued that the market seemed to me too good an idea not to mechanism could be serviceable to change minds. As this has not hap- planned and unplanned economies pened, I conclude that the forces that alike, to both ~ublicand private have been shaping federalism in enterprise, and that the discovery of recent decades are immensely power- the significance of this "may soon ful and are not likely to be reversed dwarf what we have seen of its by anything save a large movement consequences so far." I wrote that of opinion: not expert opinion, but "the logic of events is very much on public opinion. And what are these the side of Lindblom's assertion." forces? They are, very simply, the Now in this I was wholly wrong. growth of government at every level, Nothing of the kind has happened. in every form; the conquest, in More im~ressiveefforts. some con- Schumpeter's term, of the private siderable, to move policy in this sector by the public sector. And what direction did take lace in the years movement of opinion might over- after which I wrote - but almost come these forces and reverse events? without exception they failed. The Nothing less than a genuine political most important examdle was the and cultural decision by Americans Family Assistance Plan, surely the that government - at all levels, and most significant piece of social legis- in every form - is large enough and lation proposed since the New Deal. ought not to get larger. (Or even that It would have provided a guaranteed it ought to get smaller.) income to the poor, letting them pur- We are just now passing the point chase their goods and services in the where one third of our GNP is ac- market, along with everyone else. It counted for by government expendi- almost became law. but it did not. ture. As he left government after And I will stand by my statement of completing the budget for Fiscal July 1970, that if the measure were Year 1976, Roy Ash noted that over not enacted in the 91st Congress, it the preceeding 20 years that while would not be enacted in the 1970s. outlays for direct government opera- Instead we have had a huge increase of provisions in kind - food stamps - and a continued increase in pub- licly provided services of various kinds, notably medical services. Other "income strategies" ranging from experimental school voucher LLIn the near future, how- tions had grown at a rate substan- sector, these are striking patterns. ever, we will continue as we tially less than GNP - real defense Clearly the old imbalance, if that is have done: increasing the spending having actually declined - what it was, and that surely is how strength of national overn- payments to individuals rose at 8.8 it was seen, has been set right. In ments in the name o increas- percent per year, twice the growth of forecasting a slackening of the B GNP. On this basis he forecast - or growth of government - barring a ing the strength of state and rather he submitted a projection corporate statism imposed on us by local government. which indicated - that by the year events from abroad - one does not 2000 "government would lay claim draw on any rules, much less data. to more than 55 percent of the But it is the case, as I believe that nation's output . . . even if real within the middle classes, where as defense spending were held James Q. Wilson reminds us, most constant." 40 real political divisions occur, there is Now this is not a possibility that a disposition to fair mindedness and occurred to me in 1965, when in the balance which was aroused on behalf main we were still coming out of that of government gowth in the middle period in our history when it was third of the century but which is just difficult indeed to induce govern- as likely to find itself opposed to ments to spend money. To recall, the this in the latter third. Hence, I problem of "fiscal drag" was seen would judge that well before govern- to arise from this propensity not to ment is taking half the income of spend. Has there been some change the country, somewhat past the 40 since? The statistics suggest there percent point, we will taper off. And has been, and this at least suggests at that point issues of federalism will that there can be yet further change. once again assume a true saliency, A forecast seems in order. Through for we will be discussing the distribu- the 1980s, the tendency of govern- tion of power and resources in a ment to grow will continue of its relatively stable state. In the near own momentum, but in the process future, however, we will continue as the political generation that was we have done: increasing the shaped by the assumption that strength of national government in American government does not tend the name of increasing the strength to grow will be replaced by a genera- of state and local government. tion that from its own - and differ- If this seems not an especially ent - experience knows tht it does. promising proximate future, one may The advantage in argument of the consider some alternatives. In Febru- late 1950s will have been reversed, ary 1975, as is the pleasant custom with the burden of proof having of some duration, a member of the devolved onto those contentions it British cabinet happened to be in the will be that government still does too United States and came to Cambridge little, and ought to do more. The to have dinner with a group of fac- government interest, of course, will ulty. He arrived in a snow storm, a be stronger. Neal R. Peirce writes in bit late, and quite baffled by the National Journal: apparent fact that the taxi driver he . . . between 1955 and 1973, while had engaged in Boston seemed never private industry earnings were to have heard of Harvard University. 'OThe Office of Financial Analysis of the increasing 129 percent, Federal I took the liberty, another pleasant Department of the Treasury subsequently employees obtained wage increases and enduring custom, of explaining released tables on government receipts as a percent of Gross National Product for the of 183 percent and workers in to him that the British were to blame period 1929-2000. The growth rate for 1929- state and local government saw 74, projected to the year 2000, would raise their wages rise 165 ~ercent.~l the proportion from an estimated 33 percent for 1974 to 45 percent by 200. The To one who was involved in the growth rate of the years 1955-74 would early Kennedy years in the successful bring the proportion to 56 percent. effort to establish the principle of "Neal R. Peirce, "State-Local RepordFiscal "comparability" in the pay of Federal Crisis Illustrate Growing Interdependence," employees and workers in the private National Journal (February 22,1975). The Future of Federalism

for this, having bequeathed us a That is an issue we do not face. It is Tudor policy. A what? asked the in no small measure the result of a minister. Boston, I explained, is a marvelously flexible and enduring wholly different city from Cambridge system of shared but interconnected across the way. One is a system of power which for two centuries has hackney licenses, and supervision provided a stable and enduring gov- was wholly separate from the other's. ernment over a vast and heterogen- Our visitor could, of course, have eous society and an even more stu- pointed to the Boston taxi (or the en do us territory. Cambridge taxi) as indeed quite a represents tive of American federal- Daniel Patrick Moynihan, professor ism. It is a squalid, unsafe, expen- of government at Harvard University sive, and degrading experience for and a member of the faculty of the rider and a humiliating and pre- John F. Kennedy School of Govern- sumedly terrifying one for the driver, ment, served as U.S. ambassador to squashed in his filthy front seat, India from 1973-74. Prior to that he behind an ugly plastic partition de- served as consultant to rhe President signed to prevent his head being for two years, then as counsellor to blown off by the criminals who roam the President and member of the the barbarous and not less filthy Cabinet. He was Assistant to the streets of Boston and Cambridge. President for Urban Affairs and Now there are few countries on executive secretary of the Council for earth which put up with such fail- Urban Affairs in 1969. He was a ure of government - at this level of member of the United States Delega- government performance - but we tion to the United Nations in 1971. do. And this is the price we pay for He has also served as special assist- the government arrangements we ant and executive assistant to the have. And yet on the same evening Secretary of Labor, assisting and act- another aspect of American federal- ing secretary to the governor of New ism was touched on, if indirectly. York and director of the Joint Center After dinner, the minister was being for Urban Studies of the Massachu- questioned on the prospects for setts Institute of Technology and Britain remaining in the European Harvard University. He has authored Common Market. He discussed these and coauthored several books includ- with knowledge and insight, but then ing Maximum Feasible Misunder- said that if the company really standing and Coping: On the wished to know what was on his Practice of Government. mind, it was not whether Britain would federate with a yet larger sys- tem of governance. What concerned him was whether the United Kingdom was going to break up. JL Section Three Program

Thursday, 12:i5-i:45 p.m. American Federalism: A Paradox of February 20 Promise and Performance, a speech by Robert E. Merriam, Chairman, Advisory Commission on Inter- governmental Relations. 2:OO-2:45 p.m. Thirty Table Discussions: What Are Today's Major American Intergov- ernmental Problems? 3:00-3:45 p.m. Thirty Table Discussions: What Are The Most Promising Solutions to the Identified Problems? 3:45-4:45 p.m. Round-up of Problems and Solutions. Discussion Leaders: Representative Clarence Brown, Jr., Ohio, and HEW Secretary Caspar Weinberger, ACIR Members. Moderator, Tom Fletcher, President, National Training and Development Service.

Friday, 6:30-7: 30 p.m. Reception for Participants. February 21 9:00-9:45 a.m. Functions in Flux, Alan Campbell, Dean, Maxwell School, Syracuse University. Presiding Officer: Jack Maltester, Mayor, San Leandro, California, ACIR member. 9:~s-10:40a.m. Regionalism: Paper Tiger or a Real Challenge? (Three parallel sessions on this topic, each on a different aspect.) Session A-Some Viewpoints. Presiding Officer: John H. Brewer, County Commissioner, Kent County Michigan; Member of ACIR. Speakers: Francis Francois, Past President, National Association of Regional Councils; County Council Member, Prince George's County, Maryland. Edward Regan, County Executive, Erie County, New York. Robert B. Hawkins, Jr., Chairman, Governor's 1974 Task Force on Local Government Reform, Sacramento, California. Session &How It Works. Presiding Officer: Senator Robert P. Knowles, Wisconsin State Senate, Madison, Wisconsin; Member of ACIR. Speakers: John Boland, Chairman, Minneapolis-St. Paul Metropolitan Council, Minneapolis, Minnesota. Lex Hester, Chief Administrative Officer, Jacksonville-Duval County, Florida. Session C-Metropolitan Area Solu- tions. Presiding Officer: Farris Bryant, President, National Life of Florida Corporation; Former Governor of Florida; Former Chairman of ACIR. Speakers: Anthony Astrachan, For- eign Correspondent, New York, New York Howard Hallman, President, Center for Government Studies, Washing- ton, D.C. Scott Fosler, Director, Governmental Studies, Committee for Economic Development, Washington, D.C.

10:50-11:35 a.m. State, County, and City Moderniza- tion: The Rhetoric, the Record, and Relationship to the Servicing Role. Presiding Officer: James Falk, Asso- ciate Director, The Domestic Council, Washington, D.C. Speakers: The States: Dan Evans, Governor, Washington; Member of ACIR. The Counties: Conrad Fowler, Pro- bate Judge, Shelby County, Ala- bama; Member of ACIR. The Cities: Richard Lugar, Mayor, Indianapolis, Indiana; Member of ACIR. 11:45-12:30 p.m. Urban Transportation: An Old Serv- ice Sector with New Institutional and Fiscal Problems. Session A-ACIR's New Findings and Recommendations. Presiding Officer: Arthur Naftalin, Professor, University of Minnesota; Former Mayor of Minneapolis. Speaker: John H. Poelker, Mayor, St. Louis, Missouri; Member of ACIR. Commentators: Bruce Barkley, U.S. Department of Transportation, Washington, D.C. Edwin G. Michaelian, Past Presi- dent, National Association of Coun- ties; Member, New York Metropoli- tan Transportation Authority. Session B-Where It's Happening. Presiding Officer: John Hanson Bris- coe, Speaker, Maryland House of Delegates; Member of ACIR. Program

Speakers: Harry Hughes, Secretary, Saturday, 9:OO-9:35 a.m. Conference Overview and Summary. Maryland State Department of February 22 Presiding Officer: Senator Robert Transportation. Knowles, Wisconsin State Senate, B. R. Stokes, Executive Director, Madison, Wisconsin; Member of American Public Transit Association. ACIR. Revenue Sharing: Renewal Time Speaker: William G. Colman, Gov- Approaches. ernmental Consultant, Potomac, Presiding: Robert E. Merriam, Chair- Maryland; Former Executive Direc- man, ACIR. tor, ACIR. Speaker: Senator Edmund S. Mus- 9:45-10:30 a.m. Managing the Economy and Assur- kie, Maine; Chairman, Senate Budg- ing Productivity. et Committee; Chairman, Senate In- Speakers: Edgar Fiedler, Assistant tergovernmental Relations Subcom- Secretary, Economic Policy, U.S. mittee; Member of ACIR. Department of Treasury, Washing- The New Mix of Federal Assistance: ton, D.C. Project, Formula, and Block Grants- Arthur Okun, Senior Fellow, Brook- Different Approaches with Different ings Institution, Washington, D.C. Management and Money Implica- 10:35-11:15 a.m. Coming Issues in Public Control tions. Versus Public Property Rights. Presiding Officer: Robert D. Ray, Speaker: Ralph R. Widner, Director, Governor, Iowa; Member of ACIR. Academy for Contemporary Prob- Speaker: Elmer B. Staats, Comp- lems, Columbus, Ohio. troller General of the United States. 11 :20-12 Noon We Took Our Eye Off the Ball. Commentator: Daniel Elazar, Direc- Speaker: Harlan Cleveland, Direc- tor, Center for the Study of Fed- tor, International Programs, Aspen eralism, Temple University, Phila- Institute for Humanistic Studies, delphia, Pennsylvania. Princeton, New Jersey. In Search of Solvency-Strengthen- 12 :20-2 :00 p.m. Closing Luncheon. ing the State and Local Fiscal Sys- The Future of Federalism. tems. Speaker: Daniel P. Moynihan, Pro- Part I-State Revenue Sharing and fessor, Harvard University. Building Strength and Equity into 2 :00 p.m. Conference Adjournment. State Revenue Systems. Speaker: Wendell Anderson, GOV- ernor, Minnesota. Part 11-The Property Tax of Tomorrow. Speaker: Ronald B. Welch, Retired Assistant Secretary for Property Taxation, State Board of Equaliza- tion, California. Reception and Buffet for Participants at John Quincy Adams Suite at U.S. State Department. JL Section Four Participants in ACIR Conference on American Federalism in Action

The 393 participants in the National Jack Abrams Robert F. Bacon Conference on American Federalism County Commissioner Assoc. Admin, for Airports in Action represented all levels of Okanogan County, Wash. Fed. Aviation Admin. government, numerous colleges and Mamdough Abdel Hamid Ahmed Washington, DC universities, and a broad range of Secretary General Roy W. Bahl national public interest organizations Nat'l. Institute of Mgmt. Dev. Director and private citizens. Cairo, Egypt Metropolitan Studies Program The largest single category of par- Frank Alan Syracuse, NY ticipants was that representing city Director Dixon Bain government (21 percent of the at- Office of Congressional Liaison ABT Associates, Inc. tendees were mayors, city managers Law Enforcement Asst. Admin. Cambridge, Mass. and their employees, school board Washington, DC Earl M. Baker members, representatives of councils Lyle W. Alberg Assistant Professor of government, and regional bodies). City Manager Dept. of Poli. Sci. Those representing academia to- Independence, Mo. Temple University talled 15 percent of the group; the James P. Alexander Philadelphia, Pa. Federal government, 12 percent; and Assistant to the Mayor Frank Bane state government, 14 percent. Coun- Special Programs Washington, DC ty governmental representatives com- Washington, DC Paul C. Barber prised 9 percent of the participants Richard R. Almy Selectman- Treasurer and private citizens 12 percent. Per- Research Director Massachusetts Selectmen's Assn. sons representing public interest Research & Technical Services Duxbury, Mass. groups comprised 13 percent of the Int'l. Assoc. of Assessing Officers total. Bruce Barclay Chicago, Ill. US Dept. of Transportation Seventeen foreign visitors attended John H. Altorfer Washington, DC the conference under arrangements Peoria, 111. made by the U.S.Department of Ben Barnes State and the National Academy of Ms. Joan G. Anderson President Public Administration. Trustee The Herman Bennett Company Metro Sanitary District Brownwood, Texas Participation in the conference was Chicago, 111. by invitation. The state, county, and James A. Barnes city officials were nominated by the Wendell Anderson Sacramento, Calif. national associations representing Governor Timothy A. Barrow them: The Council of State Govern- St. Paul, Minn. Mayor ments, International City Manage- Harold Antoine Phoenix, Az. ment Association, the National As- General Manager Richard Barton sociation of Counties, the National Human Development Corp. City Manager Governors' Conference, the National Metro. St. Louis Clarksburg, W. Va. League of Cities, the National Con- St. Louis, Mo. T. M. Batchelor, Jr. ference of State Legislatures, the U.S. Meg Armstrong County Executive Conference of Mayors. Invitations Office of the Governor Albemarle County were also extended bv the Commis- State Capitol Charlottesville, Va. sion to federal government represen- Denver, Colo. William 0.Beach tatives, civic leaders, academics, and Anthony Astrachan County Judge ACIR alumni. New York, NY Montgomery County A list of attendees in alphabetical Anne E. Avery Clarksville, Tenn. order follows. Chairman N. A. Beadles Reg. Planning Board Prof. of Economics Genessee-Finger Lakes College of Business Rochester, NY Univ, of Georgia Kenneth Back A thens, Ga. Director Dept. of Finance & Revenue Washington, DC John E. Bebout Joe Bonvillain Robert Burns State Program Director City of Lafayette County Supervisor Institute for Urban Studies Lafayette, La. lowa City, lowa University of Houston Richard J. Bouchard John A. Busterud Houston, Texas Director Member Dr. J.Edwin Becht Officeof Trans. & Planning Assist. Council on Environmental Quality Dean Dept. of Transportation Washington, DC College of Management Washington, DC George L. Caldwell Univ. of Texas-Permian Basin John H. Brewer President Odessa, Texas Kent County Commissioner Caldwell-Scott Eng. & Const. CO. Charles Becker Grandville, Mich. Ft. Lauderdale, Flu. Washington Rep. C. Beverly Briley, Dean Alan Campbell Anchorage, Alaska Mayor Maxwell School Washington, DC Nashville, Tenn. Syracuse University Norman Beckman John Hanson Briscoe Syracuse, NY Deputy Director Speaker Dr. Anthony Carnevale Office of the Director Maryland House of Delegates Senior Policy Analyst Congressional Research Service Annapolis, Md. HEW Library of Congress George H. Brown Washington, DC Washington, DC Secretary Frank Carter G. C. S. Benson The Conference Board, lnc. Deputy Secretary to the Cabinet President Emeritus New York, NY Ottawa, Canada Claremont Men's College Larry J.Brown Peter L. Cashman Claremont, Calif. County Administrator Executive Director N. Alex Bickley Rock County Office of Intergov. Relations City Attorney Janesville, Wisc. EPA Dallas, Texas Otis L. Brown Washington, DC Guthrie S. Birkhead Secretary of Human Affairs William N. Cassella, Jr. Associate Dean Richmond, Va. Executive Director Maxwell School Ronald H. Brown National Municipal League Syracuse University Director of Washington Bureau New York, NY Syracuse, NY National Urban League Elizabeth B. Castor Robert Blackburn Washington, DC County Commissioner Director Thomas P. Bruderle Tampa, Flu. Comm. and Gov't. Relations Research Associate Gerald W.Christenson Washington University National Association of Counties State Planning Director St. Louis, Mo. Washington, DC St. Paul, Minn. John Boland William G. Bruhn Charles A. Christophersen Chairman President Director Minneapolis-St. Paul Metro Council Council of State Community Affairs Div. of State Plng. & Comm. Affrs. St. Paul, Minn. Agencies Richmond, Va. William A. Boleyn Salt Lake City, Utah Douglas H. Clark Director C. Farris Bryant Assistant Director Office of Budget President Federal-Provincial Relations Div. Wash. Metro Area Transit Auth. National Life of Florida Department of Finance Washington, DC Jacksonville, Flu. Government of Canada Fred Bolton Robert D. Bugher Ottawa, Canada Chief Executive Director Harlan Cleveland Prg. Tech & Mat. American Public Works Assoc. Director Manpower Admin. Chicago, 111. Int'l. Programs Dept, of Labor Philip D. Burnes Aspen lnstitute for Human. Studies Washington, DC City Manager Princeton, NJ Ray Bonnette Winnsboro, SC Dorothy I. Cline Legislative Assistant Albuquerque, NM Lafayette, La. Conference Participants

Daniel R. Cloutier Lindsay W. Cox Alan L. Dean Professor of Public Admin. Executive Director VP for Administration Bethesda, Md. Piedmont Triad Council of Gov'ts. U.S. Railway Association Thomas A. Cloud Greensboro, NC Washington, DC Montgomery County Commissioner James F. Coyle Philip M. Dearborn Dayton, Ohio Executive Director Executive Director Dale M. Cochran Inst. for Human Res. Dev. DC Municipal Research Bureau, Inc. Speaker Decatur, Ga. Washington, DC House of Representatives Thomas P. Coyle, Jr. Joseph Dees Des Moines, Iowa Director USIA-TV Lawrence D. Cohen Office of Intergovernmental Systems Washington, DC Mayor Dept. of HEW Milton W. Delancey St. Paul, Minn. Washington, DC Executive Director Steven P. Cohen Robert C. Crawford Pa. Assoc. of Township Sup. Special Counsel National Science Foundation Camp Hill, Pa. Federal Assistance Washington, DC Dr. Rollin M. Dennistoun Mayor's Office Allan B. Croghan Vice Chmn. Boston, Mass. U.S. Information Agency Minnesota School Brds. Assoc. Dr. Patrick D. Cole Washington, DC Apple Valley, Minn. Acting Undersecretary Charles T. Crow Robert F. Derkits Cabinet Office Director Supervisory Auditor Lagos, Nigeria Arkansas Department of Planning US General Accounting Office Evron H. Colhoun Little Rock, Ark. Washington, DC Admin. Asst. Jack B. Cummings J. Richard Devlin County Commissioners' Office Mayor Social Science Advisor Dayton, Ohio Redlands, Calif. Department of Labor Eugene N. Collins Frank E. Curley Washington, DC City Attorney Vice President Frederick L. Dewberry Chattanooga, Tenn. Dillon, Read & Co., Inc. Executive Assistant to the Governor William G. Colman New York, NY Annapolis, Md. Potomac, Md. Donald J. Curran William H. Dodds Dr. Lawrence D. Coolidge Professor of Economics Political Director Prof. of Business Administration Cleveland State University ZUUAAAZWA Grad. School of Bus. Admin. Cleveland, Ohio Washington, DC Univ. of Colorado Joan Czarnecki John D. Driggs Boulder, Colo. President Executive Vice President Maudine R. Cooper LOWV of Washington, DC Western Savings Asst. Director for Fed. Programs Washington, DC Phoenix, At. National Urban League William P. Davis John F. Due Wash. Bureau Deputy Asst. Secy. for Admin. Prof. of Economics Washington, DC Department of Transportation University of Illinois Olga Corey Washington, DC Urbana, Ill. Dir. of Wash. Off. Robert D. Ebel State of Illinois William L. Day Publisher/Editor Asst. Prof. of Economics Washington, DC Illinois Issues (U. of Hawaii) Paul Corusy C/O Sangamon State University Krannert Graduate School Executive Director Springfield, Ill. Purdtie University Int'l. Assn. of Assessing Officers W.Lafayette, Ind. Chicago, Ill. Doris W. Dealaman Freeholder-Deputy Director Mark L. Edelman Kathryn Cousins Somerset County Director Planner Somerset, NJ Division of Budget Washington, DC Jefferson City, Mo. John S. Edison Philip Finkelstein A1 From Vice Chairman Director of Research Director 'Kent County Road Commission Henry George School Senate Intergov. Rel. Subcommittee Grand Rapids, Mich. Brooklyn College Washington, DC Roberta Scott Ehrenberg New York, NY Maurice G. Galloway President Ben C. Fisher Member of Board LOWV of Pennsylvania Chairman National Assoc. Reg. Councils Philadelphia, Pa. Center for Administrative Justice Henderson, Ky. Robert C. Einsweiler Washington, DC Nestor S. Gallegos President Glenn W. Fisher City Manager American Institute of Planners Professor of Urban Affairs President Minneapolis, Minn. Wichita State University State of N.M. Assoc. Daniel J. Elazar Wichita, Kansas Taos, NM Director Lyle C. Fitch Harvey Galper Ctr. for the Study of Federalism President Economist Temple University Institute of Public Administration Office of Tax Analysis Philadelphia, Pa. New York, NY Dept. of Treasury Philip B. Elfstrom David T. Flaherty Washington, DC Chairman Secretary John Garvey Kane County Board Dept. of Human Resources Consultant Geneva, Ill. Raleigh, NC National Commission on Norman Elkin Jack Floyd Productivity and Work Quality Director National League of Cities Washington, DC Planning Division Washington, DC Janice Gilchrist Chicago, Ill. James A. Ford, Sr. Budget Examiner Robert J. Ellicott Greene County Commissioner OMB Member of Parliament Xenia, Ohio Washington, DC New South Wales Sergio Fornasiero Margaret Gilhooley Wentworth, Australia VP-Fornasiero Bros. Admin. Conf. of US Bert Emke Buffalo, NY Washington, DC Louisville Courier-Journal Scott Fosler James F. Ginther Louisville, Ky. Director President Larry H. Endy Governmental Studies Indiana Township Trustees Assn. Supervisory Auditor Committee on Economic Dev. East Chicago, Ind. US General Accounting Office Washington, DC Gleason Glover Washington, DC Conrad M. Fowler Executive Director Leon S. Eplan County Probate Judge Minn. Urban League Commissioner of Budget & Planning Shelby County Minneapolis, Minn. Atlanta, Ga. Columbiana, Ala. Herbert A. Goetsch R. John Eyre Francis Francois Commissioner of Public Works Chairman Chairman Milwaukee, Wisc. Dept. of Political Science Prince George's County Council Delphis C. Goldberg Idaho State University Upper Marlboro, Md. House Intergov. Rel. Subcommittee Pocatello, Idaho George E. Franklin Washington, DC Robert D. Farley Commissioner Herman W. Goldner Executive Director City of Las Vegas St. Petersburg, Flu. Denver Reg. Council of Gov'ts. Las Vegas, Nevada Penelope P. Gold Denver, Cofo. Ronald B. Frankum Federal Program Coordinator Director Louisville, Ky. Anthony G. Ferraro Urban Observatory of Sun Diego Willis B. Goldbeck President Sun Diego, Calif. Int'l Assoc. of Assessing Officers President Denver, Cofo. Public Policy Communications, Inc. Washington, DC Conference Participants

Samuel K. Gove Walter A. Hamilton Lex Hester Director Vice Pres. Chief Administrative Officer Institute of Government Public Affairs Research Jacksonville, Flu. University of Illinois The Conference Board, lnc. William B. Hewitt Urbana, Ill. New York, NY Associate Manpower Administrator Tom Graves William E. Hanna, Jr. US Dept. of Labor US Railway Association Mayor Washington, DC Washington, DC Rockville, Md. Lou Higgs Kenneth E. Gray Edward H. Hansen National Science Foundation Chief Deputy Asst. to Secretary Washington, DC Gov't. Div. Sen. Spec. in USDA Harley H. Hinrichs Amer. Nat'l. Gov't. Washington, DC Prof. Congressional Research Srv. Peter B. Harkins Potomac, Md. Library of Congress Asst. to the Mayor Arthur J. Holland Washington, DC Indianapolis Mayor Seymour Greben Washington, DC Trenton, NJ Director Prof. C. Lowell Harris Gerald T. Horton Parks & Recreation Professor of Economics President Los Angeles, Calif. Bronxville, NY The Research Group, Inc. Gary A. Greenough Alhaji Isa Hashim Atlanta, Ga. Mayor Int'l. and Public Affairs Center Dr. Janos Horvath Finance Commissioner University of Southern California Professor of Economics Mobile, Ala. Lagos, Nigeria Butler University Bartholomew F. Guida William J. Haskins Indianapolis, In& Mayor Regional Director Harold Hovey New Haven, Conn. Eastern Regional Office Director Ann Marie Gustafson National Urban League, Inc. Bureau of the Budget Willmar, Minn. New York, NY Springfield, Ill. Wallace F. Gustafson Dr. Masuma Hassan Jonathan T. Howe Attorney Senior Officer President Minnesota Assn. of Township Nat'l. lnst. of Pub. Admin. Board of Education Officers Pakistan Journal of Public Admin. District 27 Willmar, Minnesota Embassy of Pakistan Northbrook, Ill. Alfredo Gutierrez Washington, DC David H. Hozza Mayor Robert B. Hawkins, Jr. Councilman Del Rio, Texas Chairman St. Paul, Minn. Nicholas Gwyn Governor's Task Force on Local George E. Hubler, Jr. Chief Government Reform City Manager Research Division Loomis, Calif. Fairfax, Va. Federal-~rovincialRelations Officer Betty June Hayes Jane Hudson Ottawa, Canada Register of Deeds Program Manager Harold Hagen Orange County IGA Program American Public Welfare Assoc. Hillsborough, NC General Services Admin. Washington, DC Mary W. Henderson Washington, DC Councilwoman Albert M. Hair Harry Hughes Associate Director Redwood City, Calif. Secretary . US General Accounting Office Bernard P. Herber Maryland Dept. of Transportation Washington, DC Professor of Economics Baltimore, Md. Howard W. Hallman University of Arizona Chester Hummell President Tucson, Az. Executive Director Center for Governmental Studies Frank Hersman Ohio State Assoc. of Township Washington, DC National Science Foundation Trustees & Clerks Washington, DC Columbus, Ohio Jan Huyghebaert Walter J. Kelliher Richard K. Landtiser Counselor Mayor Councilman Prime Minister's Office Malden, Mass. Overland Park, Kansas Brussels, Belgium Bryce W. Kendall John W. Laney Alice B. Ihrig Attorney at Law City Manager Trustee School Board Member Miamisburg, Ohio Oak Lawn, Ill. Salem, Ohio Richard H. Leach Dwight Ink Robert J. Keyes Professor of Political Science Deputy Administrator Corporate Director Duke University General Services Administration Urban Affairs Durham, NC Washington, DC Lockheed Aircraft Corp. Blair Lee, 111 Lawrence M. Irvin Burbank, Calif. Lieutenant Governor Director of Planning & Development Dorothy C. King Annapolis, Md. Minneapolis, Minn. President Edward M. Levin, Jr. Guillermo Jacovella LOWV of New Hampshire Assistant Director Editor Hanover, NH Local Government Affairs "MAYORIA" Frank A. Kirk Chicago, Ill. Argentina Director Constance Lieder Jacob Jaffe Illinois Dept. of Local Gov't. Affairs Board of Governors Silver Spring, Md. Springfield, Ill. American Institute of Planners William C. Jenkins Richard Kneip Baltimore, Md. Mayor Governor J. William Little Scottsdale, Az. Pierre, SD City Administrator Pat Jensen Robert P. Knowles Wauwatosa, Wis. President President Pro Tem Frank P. Lloyd LOWV of the National Capital Area State Senate Vice President McLean, Va. Madison, Wisc. Medical Research Bert W. Johnson Raymond J. Krasniewski Methodist Hospital County Manager Assistant Professor Indianapolis, Ind. Arlington, Va. Accounting & Public Administration John J. Lordan Ohio State University Director L. Seawell Jones Columbus, Ohio County Commissioner Officeof Financial Management Selma, Al. Dr. Witold Krassowski General Services Administration Chairman Washington, DC John R. Joyner Dept. of Sociology & Anthropology Executive Director Richard C. Loux University of Santa Clara Minority Leader American Institute of Planners Santa Clara, Calif. Washington, DC Kansas House George H. Kuper Robert J. Juster Topeka, Kansas Acting Executive Director Victor L. Lowe Director of Research National Commission on Center for Urban Affairs Director Productivity General Government Division University of Alabama Washington, DC Birmingham, Ala. US General Accounting Office Maxine Kurtz Washington, DC Hope Kading Board of Governors Vice Chairman Richard Lugar American Institute of Planners Mayor Education Commission of the States Denver, Colo. Boise, Idaho Indianapolis, lnd. Lyle C. Kyle Rita K. Kaunitz William S. Luhman Director Assoc. Director for Implementation Board of Directors Colorado Legislative Council Amer. Soc. of Planning Off. NE Illinois Planning Commission Denver, Colo. Chicago, Ill. Westport, Conn. Arch G. Lamb Clay Lynch Mr. & Mrs. John P. Keith Commissioner City Manager President Lubbock County N. Las Vegas, Nevada Regional Planning Association, Inc. Lubbock, Texas New York, NY Conference Participants

Arthur D. Lynn, Jr. C. B. Mattox, Jr. George H. Morgan Professor City Attorney Associate Director Economics & Public Admin. Richmond, Va. National Center for State Ohio State University Senator Oscar Mauzy Courts Columbus, Ohio Austin, Texas Denver, Colo. Donald G. MacDonald A1 McArthur Harry Morley Williamstown, Vt. Coordinator Reg. Commerce & Growth Assoc. Earl S. Mackey Intergovernmental Programs St. Louis, Mo. Executive Director Montgomery County Mrs. Barbara M. Morris Natl. Conf. of State Legislatures Rockville, Md. Ellicott City, MA. Denver, Colo. Gladys McCoy Thomas D. Morris Mark Malone School Board Member Assistant Comptroller General Federal-~rovincialRel. Office Portland, Oregon US General Accounting Office Ottawa, Canada Mary Ann McCoy Washington, DC Thomas C. Maloney State President Dr. Dorothy Robbins-Mowry Mayor LOWV of Minnesota US Information Agency Wilmington, Del. Minneapolis, Minn. Washington, DC Jack D. Maltester Terry A. McHenry Daniel P. Moynihan, Mayor Member Professor San Leandro, Calif. Board of Trustees Department of Government Allen D. Manvel Oak Grove School District Harvard University Washington, DC San Jose, Calif. Cambridge, Mass. Vincent L. Marando Dr. Quinn G. McKay Mrs. Jeanette Mullen Associate Professor M. 7. Neeley School of Business League of Women Voters The University of Georgia Texas Christian University Barrington, Ill. Athens, Ga. Fort Worth, Texas Dr. Selma Mushkin Charles L. Marinaccio Joseph E. McLean Director Director Prof. of Urban Affairs Public Service Laboratory Executive Secretariat University of Pittsburgh George Washington University LEAA Pittsburgh, Pa. Washington, DC Washington, DC Michael J. McNulty Larry Naake Joseph S. Marinish City Manager Executive Director Director Peoria, Az. California Park & Recreation Soc. Council of State Community Affairs Jack M. Merelrnan Sacramento, Calif. Agencies CSAC Washington Rep. Arthur Naftalin Madison, Wis. Washington, DC Professor of Public Affairs James Martin Robert E. Merriam University of Minnesota Assistant Director Executive Vice President Minneapolis, Minn. National Governors' Conference Urban Investment & Dr. Donald D. Newman hshington, DC Development Co. President Albert L. Massoni Chicago, 111. Board of Education Director of National Affairs Edwin G. Michaelian Los Angeles, Calif. American Institute of Planners Director Michael J. O'Bannon Washington, DC Institute for Sub/Urban Chart Associates J. Marie Masters Gov't. Boston, Mass. Bowie, Md. Pace University Richard B. Ogilvie John A. Mathews Pleasan tville, NY Chicago, 111. Secretary-General Guy E. Millard Arthur Okun lnt'l. Association for Federal Union County Administrator Senior Fellow Silver Spring, Md. Somerville, Nl Brookings Institution Kuldeep Mather Lennox L. Moak Washington, DC Professor Director of Finance Indian Institute of Public Admin. Philadelphia, Pa. New Delhi, India John J. Oostema Fernand Poire K. J. Ratnam Chairman General Director Director Kent County Road Commission Town of Longueuil Center for Policy Research Grand Rapids, Mich. Longueuil University Science Malaysia Marjorie Page P.Q., Canada Kuala Lumpur, Malaysia Clerk & Recorder Joseph M. Pollard Robert D. Ray Arapahoe County Legislative Representative Governor President Los Angeles County Des Moines, Iowa Nat'l. Assn. of Co. Record. and Washington, DC Jeanette F. Reibman Clerks A. Alan Post State Senator Littleton, Cola. Legislative Analyst Easton, Pa. Beverly P. Parks State of California George F. Reinke Jackson County Legislature Sacramen to, Calif. County Executive Kansas City, Mo. Edward J. Potthoff, Jr. Dane County Robert H. Paslay Saginaw, Mich. Madison, Wisc. American Institute of Planners Dorothy K. Powers Dr. Hermann Renner Metro. Plan. Comm. of Nashville President German TV Nashville, Tenn. League of Women Voters Munich, Germany Jim Pederson Short Hills, NJ Carlton K. Rhembrandt Deputy Commissioner for Admin. Perry T. Prentice City Manager State of Minnesota New York, NY Chadron, Neb. St. Paul, Minn. Allen Pritchard Larry Rice R. Leo Penne Executive Vice President City Manager Office of Policy Analysis National League of Cities Highland Park, Ill. National League of Cities Washington, DC Harold E. Riehm Washington, DC Nelson Pryor Executive Director James C. Perrill Washington, DC Kansas ACIR President Vincent Puritano Topeka, Kansas Denver Board of Education Deputy Associate Director John Riew Denver, CoIo. intergovernmental Relations Professor of Economics John Perry Office of Management and Budget Penn State University Council of State Governments Washington, DC University Park, Pa. Washington, DC George W. Pyle Nancy L. Rising Neal R. Peirce City Manager Mayor The National Journal Hutchinson, Kansas Pro Tem Washington, DC Kenneth E. Quindry Councilman Wendell Pierce Research Professor Bellevue, Wash. Executive Director Center for Business & Economic Res. Benjamin Ritchey Education Comm, of the States University of Tennessee Vice President Denver, Colo. Knoxville, Tenn. City Council William J. Pitstick Laszlo Ecker-Racz Lafayette, La. Executive Director Arlington, Va. Joseph M. Robertson Council of Governments Mansihn M. Rana Director North Central Texas Chief Architect Bureau of Intergov. Arhgton, Texas Design Group Personnel Prog. Richard Platte Ministry of Works and Housing US Civil Service Commission Deputy Controller New Delhi, India Washington, DC Grand Rapids, Mich. Frederick G. Rasweiler Fred Rhodes John H. Poelker President Professional Staff Member Mayor Nat'l. Assn. of Towns & Townships Senate Appropriations St. Louis, Mo. New Jersey Assn. of Townships Committee Pennington, N7 Washington, DC Conference Participants

Bernard Rosen Dr. Maury Seldin Edwin 0.Stene Executive Director Acting Dean Chairman US Civil Service Commission School of Business Administration Kansas ACIR Washington, DC The American University W.Lafayette, Ind. Marvin A. Rosenblum Washington, DC Geri Stewart President Carleton F. Sharpe President Precision Polymers, Inc. Senior Advisor LOWV of the Bay Area Mountainside, NJ John C. Lincoln Institute Los Altos, Calif. Paul H. Royster Hartford, Conn. Frederick Stocker City Manager William R. Shaw Center for Bus. & Econ. Research Covington, Ky. Staff Attorney Ohio State University Martin 0. Sabo Admin. Conf. of US Columbus, Ohio Speaker Washington, DC B. R. Stokes Minnesota House of Representatives David H. Shepherd Executive Director St. Paul, Minn. Mayor American Public Transit Assoc. Seymour Sacks Oak Park, Mich. Washington, DC Professor of Economics Harry S. Shipp, Jr. Robert W. Stokley Syracuse Unfversity Supervisor of Assessments National Civil Service League Syracuse, NY Prince George's County Washington, DC Edmund C. Sajor Upper Marlboro, Md. Preble Stolz San Francisco, Calif. Melvin S. Lawik Director Rodolfo B. Sanchez County Executive Governor's Office National Director New Castle County Planning & Research COSSM HO Wilmington, Del. Sacramento, Calif. Los Angeles, Calif. Idell Silberman Carl F. Stover William K. Sanford School Brd. Dir. and Clerk Director Executive Secretary Golden Valley, Minn. Bicentennial Resources Association of Towns Virgil T. Smith Development Albany, NY Coordinator Nat'l. Endowment for the Arts Jim Savarese Comm. on Interstate Coop. Washington, DC AFSCME Dalton, Ga. Ervin Strandquist Washington, DC N. David Spurgin Chairman Friedrich Schaefer Director of Research Minn. Assoc. of Transp. Ofc. Professor Doctor Texas ACI R Newfolden, Minn. Bonn, Germany A us tin, Texas Hobby Stripling, Sr. Carl Schliffke Elmer B. Staats Mayor City Administrator Comp. General of the US Vienna, Va. Mission Hills, Kansas Washington, DC Lorraine M. Strycker Stanley Schoenfeld Henrik E. Stafseth Executive Director Peat, Marwick, Mitchell & Company Washington, DC Tampa Bay Regional Gout. Study New York, NY David E. Stahl St. Petersburg, Flu. Mrs. Robert E. Schreiber Executive Vice President Dr. Glenn H. Sullivan President The Urban Land Institute Marketing Economist Canton Board of Education Washington, DC W.Lafayette, Ind. Canton, Ohio George A. Stahl Richard Sullivan Duane C. Scribner County Commissioner Vice President Special Assis tan t Allentown, Pa. Public Affairs Officeof the Governor August W. Steinhilber US Railway Assn. St. Paul, Minn. Assistant Executive Director Washington, DC Harold Seidman Federal Relations Philip B. Swain Professor Nat'l. School Boards Assn. President Dept. of Political Science Washington, DC National School Boards Assn. University of Conn. Seattle, Wash. Storrs, Conn. Marjorie L. Taylor Charles R. Warren Charlotte L. Williams Assistant Director Project Director County commissioner Ctr. for Urban Studies National Academy of Public Admin. 4th District Wichita State University Washington, DC Flint, Mich. Wichita, Kansas George H. Watson William E. Williams William L. Taylor President Deputy Commissioner Center for Nat'l. Policy Review Friends World College Internal Revenue Service Catholic University Law School Huntington, NY Washington, DC Washington, DC Graham W. Watt Thomas F. Wilson 0.White Thomas Director Associate Professor City Manager Office of Revenue Sharing Economics Mount Pleasant, Tenn. Washington, DC Butler University Indianapolis, Ind. Dr. Peter Tobia Dr. Harold V. Webb Program Director Executive Director Clyde J. Wingfield The Young Presidents' Org. National School Boards Assn. New York, NY New York, NY Evanston, Ill. John J. Woods Kenneth C. Tollenaar Vance A. Webb President Director Supervisor New York School Boards Assoc. Bur, of Gout. Research Kern County Rochester, NY University of Oregon Tuft, Calif. Arlo Woolery Eugene, Oregon Caspar W. Weinberger Executive Vice President Joseph F. Toner Secretary Lincoln Institute of Land Policy County Councilman Department of HEW Phoenix, Az. Wilrnington, Del. Washington, DC John L. Wortham Philip H. Townley Ronald B. Welch Chairman Director of Programs Sacramento, Calif. Department of Economics Institute of Cultural Affairs David I. Wells Texas Christian University Chicago, Ill. Assistant Director Fort Worth, Texas Jane M. Tripp Political Department Gordon T.Yamada LOWV of Delaware Int'l. Ladies Garments Workers Director Newark, Del. Union Officeof Management Systems New York, NY General Services Admin. Christine Urban George Dorian Wendel Washington, DC Coordinator Director A. Norton Younglove State & Local Government Dept. Center for Urban Programs County Supervisor LOWV Educ. Fund St. Louis University Riverside, Calif. Washington, DC St. Louis, Mo. Barbara Zimmer Joane R. Vail Richard C. Wertz President Metropolitan Council Chairman LOWV of Indiana St. Paul, Minn. Nat'l Conf. of State Criminal Indianapolis, Ind. Justice Joseph F. Zimmerman Stephen J. Varholy Cockeysville, Md. Assistant Director Professor of Political Science US General Accounting Office Charles Whitrnire Graduate School of Public Affairs Washington, DC Council of State Governments State University of New York Washington, DC Albany, NY Andrew Varley Assistant House Minority Ralph Widner Leader Academy Director Des Moines, Iowa Academy for Contemporary Problems John W. Walls Columbus, Ohio Vice President Merchants National Banks Taffy Wilbur Indianapolis, Ind. Mayor's Office of Aging St. Louis, Mo.

The Advisory Commission on Intergovernmental Relations

The Advisory Commission on Inter- resources, increased efficiency in col- governmental Relations (ACIR) was lection and administration, and re- created by the Congress in 1959 to duced compliance burdens upon the monitor the operation of the Ameri- taxpayers. can federal system and to recom- Studies undertaken by the Commis- mend improvements. ACIR is a sion have dealt with subjects as di- permanent national bipartisan body verse as transportation and as spe- representing the executive and legis- cific as state taxation of out-of-state lative branches of Federal, state, and depositories; as wide ranging as sub- local government and the public. state regionalism to the more spe- The Commission is composed of 26 cialized issue of local revenue diversi- members - nine representing the fication. In selecting items for the Federal government, 14 representing work program, the Commission con- state and local government, and siders the relative importance and three representing the public. The urgency of the problem, its man- President appoints 20 - three pri- ageability from the point of view of vate citizens and three Federal execu- finances and staff available to ACIR tive officials directly and four gov- and the extent to which the Commis- ernors, three state legislators, four sion can make a fruitful contribu- mayors, and three elected county offi- tion toward the solution of the cials from slates nominated by the problem. National Governors' Conference, the After selecting specific intergovern- Council of State Governments, the mental issues for investigation, ACIR National League of Cities/U.S. Con- follows a multistep procedure that ference of Mayors, and the National assures review and comment by rep- Association of Counties. The three resentatives of all points of view, all Senators are chosen by the President affected levels of government, tech- of the Senate and the three Congress- nical experts, and interested groups. men by the Speaker of the House. The Commission then debates each Each Commission member serves a issue and formulates its policy posi- two year term and may be reap- tion. Commission findings and rec- pointed. ommendations are published and As a continuing body, the Commis- draft bills and executive orders de- sion approaches its work by ad- veloped to assist in implementing dressing itself to specific issues and ACIR policies. problems, the resolution of which would produce improved coopera- tion among the levels of govern- ment and more effective functioning of the federal system. In addition to dealing with the all important func- tional and structural relationships among the various governments, the Commission has also extensively studied critical stresses currently being placed on traditional govern- mental taxing practices. One of the long range efforts of the Commis- sion has been to seek ways to im- prove Federal, state, and local gov- ernmental taxing practices and poli- cies to achieve equitable allocation of Current Members of the Advisory Commission on Intergovernmental Relations (April 1975)

Private Citizens: Robert E. Merriam, chairman, Chicago, Ill. John H. Altorfer, Peoria, 111. Robert H. Finch, Los Angeles, Calif. Members of the U.S. Senate: Ernest F. Hollings, South Carolina Edmund S. Muskie, Maine William V. Roth, Delaware Members of the U.S. House of Representatives: Clarence J. Brown, Jr., Ohio James C. Corman, California L.H. Fountain, North Carolina Officers of the Executive Branch, Federal Government: James T. Lynn, Director, Office of Management and Budget Caspar W. Weinberger, Secretary of Health, Education and Welfare James M. Cannon, Executive Direc- tor, The Domestic Council Governors: Daniel J. Evans, Washington Richard F. Kneip, South Dakota Philip W. Noel, Rhode Island Robert D. Ray, Iowa Mayors: Richard G. Lugar, vice chairman, Indianapolis, Ind. Jack D. Maltester, San Leandro, Calif. John H. Poelker, St. Louis, Mo. Vacancy Members of State Legislative Bodies: John H. Briscoe, Speaker, Maryland House of Delegates Robert P. Knowles, Senator, Wisconsin Charles F.Kurfess, Minority Leader, Ohio House of Representatives Elected County Officials: John H. Brewer, Kent County, Mich. Conrad M. Fowler, Shelby County, Ah. Vacancy Former Members of the Advisory Commission on Intergovernmental Relations/1959-74

Private Citizens (3): Frank Bane, Chairman, Vir inia Farris Bryant, Chairman, F korida John E. Burton, New York James K. Pollack, Michigan Howard R. Bowen, Iowa Don Hummel, Arizona Thomas H. Eliot, Missouri Adelaide Walters, Mrs., North Carolina Dorothy I. Cline, New Mexico Price Daniel, Texas Alexander Heard, Tennessee Howard H. (Bo) Callaway, Georgia Edward C. Banfield, Massachusetts U. S. Senators (3): Sam 1. Ervin, Jr., North Carolina Karl E. Mundt, South Dakota Charles H. Percy, Illinois U. S. Representatives (3): Florence P. Dwyer, Mrs., New Jersey Wilbur D. Mills, Arkansas Frank Ikard, Texas Eugene J. Keogh, New York A1 Ullman, Oregon Members of the Federal Executive Branch (3): Robert B. Anderson, Secretary of the Treasury Arthur S. Flemming, Secretar Health, Education, and We7fare Of James P. Mitchell, Secretary of Labor C. Douglas Dillon, Secretary of the Treasury Abraham A. Ribicoff, Secretary of Health, Education, and Welfare Arthur J. Goldberg, Secretary of Labor Anthony J. Celebrezze, Secretary of Health, Education, and Welfare Robert C. Weaver, Secretary of Housing and Urban Develop- ment Orville L. Freeman, Secretary of Agriculture Henry H. Fowler, Secretary of the Treasury Farris Bryant, Chairman, Director of Office o Emergency Planning Ramsey Clar kf , Attorney General Price Daniel, Director of the Office of Emergency Preparedness Robert H. Finch, Secretary of Mayors (4): Health, Education, and Welfare, Anthony J. Celebrezze, Cleveland, Counselor to the President Ohio Robert P. Mayo, Director of the Gordon S. Clinton, Seattle, Bureau of the Budget Washington George H. Romney, Secretary of Don Hummel, Tucson, Arizona Housing and Urban Develop- Norris Poulson, Los Angeles, ment California George P. Shultz, Director, Office Richard Y. Batterton, Denver, of Management and Budget, Colorado Secretary of the Treasury Leo T. Murphy, Santa Fe, New Kenneth R. Cole, Jr., Assistant to Mexico the President for Domestic Neal S. Blaisdell, Honolulu, Hawaii Affairs Arthur Naftalin, Minneapolis, Governors (4): Minnesota Ernest F. Hollings, South Carolina Raymond R. Tucker, St. Louis, Abraham A. Ribicoff, Connecticut Missouri Robert E. Smylie, Idaho Arthur L. Selland, Fresno, William G. Stratton, Illinois California John Anderson, Jr., Kansas Herman W. Goldner, St. Peters- Michael V. DiSalle, Ohio burg, Florida Carl E. Sanders, Georgia Richard C. Lee, New Haven, Terry Sanford, North Carolina Connecticut John Dempsey, Connecticut Theodore R. McKeldin, Baltimore, John A. Volpe, Massachusetts Maryland Nelson A. Rockefeller, New York William F. Walsh, Syracuse, New Buford Ellington, Tennessee York James A. Rhodes, Ohio C. Beverly Briley, Nashville, Spiro T. Agnew, Maryland Tennessee Raymond P. Shafer, Pennsylvania Lawrence F. Kramer, Jr., Paterson, Warren E. Hearnes, Missouri New Jersey Ronald Reagan, California Harry G. Haskell, Jr., Wilmington, Dale Bumpers, Arkansas Delaware Richard B. Ogilvie, Illinois John D. Driggs, Phoenix, Arizona State Legislators (3): Edwin J. Garn, Salt Lake City, Elisha Barrett, New York, Senate Utah Leslie Cutler, Mrs., Massachusetts, County officials (3): Senate Edward Connor, Wayne County, John W. Noble, Missouri, Senate Michigan Hal Bridenbaugh, Nebraska, Clair Donnenwirth, Plumas Senate County, California Robert A. Ainsworth, Jr., Louisi- Edwin G. Michaelian, Westchester ana, Senate County, New York Robert B. Duncan, Oregon, House Barbara A. Wilcox, Mrs., Wash- John E. Powers, Massachusetts, ington County, Oregon Senate William 0.Beach, Montgomery Graham S. Newell, Vermont, County, Tennessee Senate Angus McDonald, Yakima Coun- Harry King Lowman, Kentucky, ty, Washington House Gladys N. Spellrnan, Prince Marion H. Crank, Arkansas, George's County, Maryland House John F. Dever, Middlesex County, Charles R. Weiner, Pennsylvania, Massachusetts Senate Lawrence K. Roos, St. Louis C. George DeStefano, Rhode County, Missouri Island, Senate Ben Barnes, Texas, House Jess M. Unruh, California, Assembly W. Russell Arrington, Illinois, Senate B. Mahlon Brown, Nevada, Senate Commission Staff

Anderson, Wayne F., Executive Director Walker, David B., Assistant Director Shannon, F. John, Assistant Director Beam, David, In tern Bowman, John H., Senior Govern- ment Resident in Public Finance Bunn, Elizabeth A., Secretary Clarke, Lavinia B., Secretary Cutler, Natalie J., Research Assistant Davis, Marinda T., Secretary Evans, Phyllis, Secretary Ferrell, Lynn D., Intern Fried, Esther, Administrative Officer Gabler, L. Richard, Senior Analyst Gilson, Lawrence D., Director of Policy Implementation Hahn, Thomas D., Accountant Jones, MacArthur C., Duplicating Machine Operator Kafoglis, Milton, Senior Academic Resident in Public Finance McDowell, Bruce D., Senior Analyst Moore, Margaret E., Secretary Myers, Will S., Senior Analyst Nolin, Evelyn, Secretary Richter, Albert J., Senior Analyst Roberts, Diana M., Production Manager Ross, Ronald L., Mail Room Supervisor Silberg, Linda, Secretary Smith, Betty W., Secretary to Executive Director Steinko, Franklin A., Jr., Assistant to the Executive Director Stenberg, Carl W., Senior Analyst Suyderhoud, Jack, Intern Thomas, Gloria K., Secretary Tippett, Francis X., Statistician Veseth, Michael A., Intern Ward, Gloria D., Secretary Weissert, Carol S., Information Officer Wright, Carol M., Librarian William R. MacDougall, Federalism Conference Director Jo Anne Jimenez, Conference Administrative Assistant

Advisory Commission on ~ntergovernmentalRelations Washington, D.C. 20575 August, 1975