National Advisory Commission on Rural Poverty

REPO T RESUME

ED 016SK; RC 002 030 THE PEOPLE LEFT BEHIND, A REPORT BY THE PRESIDENT'S NATIONAL ADVISORY COMMISSION ON RURAL POVERTY. BY- BREATHITT, EDWARD T. NATIONAL ADVISORY COMMISSION ON RURAL POVERTY PUB DATE SEP 67 EDRS PRICE MF.-$0.75 HC -$6.76 167P.

DESCRIPTORS- COMMUNITY DEVELOPMENT, COMMUNITY, DEPRESSED AREAS (GEOGRAPHIC), DEVELOPMENT, *ECONOMIC DISADVANTAGEMENT, ECONOMICALLY DISADVANTAGED, FAMILY PLANNING, GOVERNMENT ROLE: HEALTH.NEEDS: *HEALTH SERVICES, HOUSING, JOBS, LOW INCOME, MANPOWER DEVELOPMENT, MANPOWER UTILIZATION, NATURAL RESOURCES, ORGANIZATION, *RURAL AREAS, RURAL POPULATION, *RURAL EDUCATION, RURAL DEVELOPMENT, UNEMPLOYMENT, WELFARE SERVICES, OPPORTUNITIES,

OUR NATION IS PLAGUED WITH RURAL POVERTY EXTENDING THROUGH MOST AREAS OF OUR COUNTRY AND ENCOMPASSING SOME 14 MILLION RURAL PERSONS. THIS TOTAL NUMBER WOULD BE EVEN LARGER IF SO MANY RURAL PERSONS HAD NOT MIGRATED INTO THE URBAN AREAS OF OUR COUNTRY. THE RURAL POOR POPULATION IS CHARACTERIZED BY- -LOW INCOME, A HIGHER UNEMPLOYMENT RATE (4 PERCENT NATIONALLY AND 18 PERCENT FOR RURAL AREAS), LOW EDUCATIONAL ATTAINMENT, POOR HOUSING, HUNGER, MALNUTRITION, AND A HIGHER INFANT MORTALITY RATE THAN AMONG THE LEAST PRIVILEGED GROUP IN URBAN AREAS. THE PRESIDENT'S NATIONAL ADVISORY COMMISSION ON RURAL POVERTY HAS CHARTED A COURSE TO ELIMINATERURAL POVERTY, AS NOTED IN THE FOLLOWING RECOMMENDATIONS - -(1) THE U.S. SHOULD ADOPT AND EFFECT A POLICY OF EQUAL OPPORTUNITY FOR ALL PEOPLE, (2) THE NATIONAL POLICY OF FULL EMPLOYMENT, INAUGURATED IN 1946, SHOULD BE MADE EFFECTIVE, (3) OUR FEDERAL GOVERNMENT SHOULD ASSURE ALL PEOPLE ENOUGH INCOME FOR A DECENT LIVING, (4) MANPOWER POLICIES AND PROGRAMS SHOULD BE REVAMPED, (5) RURAL EDUCATION SHOULD BE IMPROVED' (6) BETTER HEALTH SERVICES WITH FAMILY PLANNING SHOULD BE PROVIDED, (7) AN IMPROVEMENT SHOULD BE MADE IN RURAL HOUSING, AND (8) MULTICOUNTY DISTRICTS SHOULD BE FORMED TO PLAN COOPERATIVELY AND COORDINATE PROGRAMS FOR ECONOMIC DEVELOPMENT. THIS BOOK IS AVAILABLE FOR $1.00 FROM THE SUPERINTENDENT OF DOCUMENTS, GOVERNMENT PRINTING OFFICE, WASHINGTON, D.C., 20402. (ES) I

U.S. DEPARTMENT OF HEALTH, EDUCATION & WELFARE

OFFICE OF EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM THE

-.1- PERSON OR ORGANIZATION ORIGINATING IT.POINTS OF VIEW OR OPINIONS Lr STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICE OF EDUCATION ,,C0 POSITION OR POLICY. T.--q

. . A A ."1111 II' III THE PEOPLE LEFT BEHIND

A Report by the President's National Advisory Commission on Rural Poverty

Washington, D.C. Issued September 1967

For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C., 20402 - Price $1.00 To The President:

We have the honorto submit to you, through your Camnittee on Rural Poverty, the Report of the National Advisory Commission on RuralPoverty.This is in response to your instructions tothe Commission asgiven in Executive Order 11306 of September 27,11966.

You will notefromthe signatures below that this Report was unanimously approved bythe members of the Camnission.

EDWARD T. BREATHITT, CHAIRMAN

04?. NNIE B. GAY WHOP LIBBY

DAVID W. MOCKS CARLYLEMARti .11,4edt V SARA R.. CALDWELL VIVIAN W. HENDERSON THOMAS W. MOORE

ZA4thatA P-40. CIS S. HUTCHINS ROBERT A. WESSEL, JR. V Members of the Commission Dr. James T. Bonnen Francis S. Hutchins Professor of Agricultural Economics. President, Berea College Michigan State University Dr. Kara V. Jackson Honorable Edward T. Breathitt (Chairman) Professor of Education Governor of Kentucky Grambling College David W. Brooks Lewis J. Johnson Executive Vice President and General Manager President, Arkansas Farmer's Union Cotton Producers Association W. Wilson King Mrs. Sara R. Caldwell Owner, King lore Farms Director, Division of Child Welfare Mississippi State Department of Public Welfare Oscar M. Laurel National Transportation Safety Board Dr. Lawrence A. Davis President, Arkansas Agricultural Technical and Dr. Winthrop C. Libby Normal College Dean, College of Agriculture University of Maine Neil 0. Davis Editor, Lee County Bulletin Dr. Carlyle Marney Auburn, Alabama Pastor, Myers Park Baptist Church

John Fischer Thomas W. Moore Editor-in-Chief President, ABC Television Harper's Magazine Dr. Thomas R. Ford Robert A. Roessel, Jr. Director, Rough Rock Navaho Demonstration Professor of Sociology University of Kentucky School Herman E. Gallegos James Earl Rudder Consultant to the Ford Foundation President, Texas ARM University Connie B. Gay Dr. J. Julian Samora President and Chairman of the Board Program Specialist on Population Studies Connie B. Gay Broadcasting Company The Ford Foundation James 0. Gibson Miles C. Stanley Staff Associate President, West Virginia Federation of Labor, Potomac Institute AFL-CIO

Dr. Vivian W. Henderson John Wooden legs President, Clark College President, Northern Cheyenne Tribal Council

iu Members ofthe Committee Orville L. Freeman, Chairman Sargent Shrivel- Secretary of Agriculture Director of Office of Economic Opportunity

Bernard C. Boutin Stewart L. Udall Administrator of Small Business Administration Secretary of the Interior Robert C. Weaver John T. Connor Administrator of Housing and Urban Develop- Secretary of Commerce ment John W. Gardner W. Willard Wirtz Secretary of Health, Education, and Welfare Secretary of Labor

LIAISON WITH PRESIDENT'S COMMITTEE Kenneth M. Birkhead Elmer 3. Moore Department of Agriculture Office of Economic Opportunity

Richard M. Philbin James Rettie Small Business Administration Department of the Interior

Jonathan Lindley Ramsay Wood Department of Commerce Department of Housing and Urban Development

Lisle C. Carter, Jr. Millard Cass Department of Health, Education, and Welfare Department of Labor

iv Members of the Staff Executive Director C. E. Bishop Associate Director George L. Wilber Assistant to Executive Director Lawrence S. Stinchcomb Professional Staff William B. Back, Economist Clifton R. Jones, Sociologist J. Allan Beegle, Sociologist E. Walton Jones, Economist W. Keith Bryant, Economist J. Patrick Madden, Economist Cleveland A. Chandler, Economist Marcel le Masters, Editor Lynn M. Daft, Economist Me lda Richardson, Editor Jack. Fleming, Writer George M. Stephens, Jr., Development Consultant Goo loo S.Wundeulich, Demographer

Secretarial and Clerical J. Gayle Carpenter TADene Hester Marian C. Carter Linda G. Hogberg Florentine M. Ford Patricia McEvoy Mary Thomas Fox Anne Reed Jacklyn D. Harris Edna E. Raymond Marjorie L. Henricks Velma B. Tachovsky Task of the commission In the President's Executive Order No.11306, the National Advisory Com- mission on Rural Povertywas charged with the following responsibilities: To make a comprehensive studyand appraisal of the currenteco- nomic situations and trends in Americanrural life, as they relate to the existence of income and communityproblems of ruralareas, including problems of low income, thestatus of rural labor, including farm labor, unemployment andunderemployment and retraining in usable skills ;rural economic development andexpanding opportunities; sources of additional rural employment; availabilityof land and other resources ; adequacy of food, nutrition, housing, health,and cultural opportunities for rural families; thecondition of children and youth in rural areas and theirstatus in an expanding national economy;; the impact of population and demographicchanges, including rural migration; adequacy of rural communityfacilities and services; exploration of new and bettermeans of eliminating the causes which perpetuate rural unemployment and underemployment,low income andpoor facilities; and other related matters. To evaluate themeans by which existing programs, policies, and activities relating to the economicstatus and community welfare of rural people may be coordinatedor better directed or redirected to achieve the elimination of underemploymentand low income of rural people and to obtain' higher levels ofcommunity facilities and services. To develop recommendations foraction by local, Stateor Federal governments or private enterpriseas to the most efficient and promising means of providing opportunities for the rural populationto share in American's abundance.

....1/. Preface In the Economic Opportunity Act of 1964 the Congress declared it to be the policy of the United States to obliterate poverty. Since that date, antipoverty programs of unusualscope and variety have been developed and put into effect by Federal, State, and local governments and by numerous private organizations representing business, labor, church, and other interested groups. Many of these programs have hada significant effect. A heavy burden of poverty remains, however. Most of the antipoverty effort has been aimed at urban poverty. Few of the new programs have had a major impacton rural America. Yet, as Presi- dent Johnson indicated by his Executive order creating the National Advisory Commission on Rural Poverty, the problem of poverty in ruralareas is so acute as to require immediate and special attention. The heavy migration from. rural America to the blighted areas of our major cities clearly shows how bad economic and social conditions are in rural areas. . This Commission has assembled the facts of rural poverty andon the basis of these facts has made specific recommendations calling for majorchanges in our antipoverty programs. The Commission's objective is both to give immediate aid to the rural poor and to attack thecauses of their poverty. Chapters 1 and 2. of this report focus sharplyon current conditions in rural America and On the urgent need for action. The relationship betweenthe poverty in our central cities and in ruralareas is clearly established, and the Commis- sion emphasizes the futility .of attempts to solve the urban problemwithout comparable efforts to solve the rural problem. Chapters 3 through 14 examine specific rural problemsunemployment, health, education, housing, deteriorating communities, existinggovernment pro- .gramsand suggest both new programs and changes in currentones. The Commission's recommendations call for specific action by all unitsof govern- mentloca, State, and Federalas wellas by private groups and individual citizens. . Before framing its recommendations theCommission obtained information from numerous sources, public and private. The firsthand testimony of therural poor. was sought and obtained at public hearings. The Commission's staffas- sembled anti analyzed data made available bynumerous institutions, including Federal, State, and -local agencies. Also members of the staffand leading authorities outside the staff conducted original research forthe Commission. In three public hearings the Commission received oraltestimony from 105 witnesses: In addition,many papers were submitted for the record. These hearings were conducted at Tucson, Ariz.,on January 26 and 27, 1967, at Memphis, Tenn., on February 2 and 3, and at Washington, D.C.,on February 15, 16, and 17. The Commission, also heard testimonyat Berea, Ky., on conditions in eastern Kentucky, and in Puerto Rico and the Virgin Islands. Verbatimtranscripts of the hearings will be published. In addition, the Commission has made, arrangements withsome of the best qualified students of rural poverty in the UnitedStates to prepare 45 technical

vii papers on specific aspects of the problem. Some of these backgroundpapers will be published later ina separate volume. In its meetings the Commission deliberatedas a body to assess the facts of rural poverty and to arrive at its recommendations.The Commission was given detailed informationon each facet of the rural problem. The -recommendations in this report, accordingly, reflect the judgmentof the members of the Commission. While some of the recommendationsmay not be applicable to all parts of the continental United States, andsome are not applicable to Puerto Rico and the Virgin Islands, it is believed thatmost of the recommendations can be applied nationwide. The Commission desires toexpress special appreciation for the excellent cooperation given by those individuals who servedas liaison with departments and agencies of the Federal Government. Thecontribution made by the departments in providing the Commission with data and with informationon current programs was particularly valuable.

viii .

Summary This report is about a problem which many in count. We have not yet adjusted to the fact that in the United States do not realize exists. The prob- the brief period of 15 years, from 1950 to 1965, new lem is rural poverty. It affects some 14 million machines and new methods increased farm output Americans. Rural poverty is so widespread, and in the United States by 45 percentand reduced so acute, as to be a nationaldisgrace, and its conse- farm employment by 45 percent. Nor is there ade- quences have swept into our cities,violently. quate awareness that during the next 15 years the The urban riots during 1967 had their roots, in need for farm labor will declhie by another 45 considerable part, in rural poverty. A high pro- percent. Changes like these on the farm are par- portion of the people crowded into city slums today alleled on a broader front throughout rural came there from rural slums. This fact alonemakes America, affecting many activities other than clear how large a stake the people of this nation farming and touching many more rural people have in an attack on rural poverty. than those on farms. The total number of rural poor would be even In contrast to the urban poor, the rural poor, larger than 14 million had not so many of them notably the white, are not well organized, and have moved to the city. They made the move because few spokesmen for bringing the Nation's attention they wanted a job and a decent place to live. Some to their problems. The more vocal and better orga- have found them. Many have not. Many merely nized urban poor gain most of the benefits of exchanged life in a rural slum for life in an urban current antipoverty programs. slum, at exorbitant cost to themselves, to the cities, Until the past few years, the Nation's major and to rural America as well. social welfare and labor legislation largely by- Even so, few migrants have returned to the rural passed rural Americans, especially farmers and areas they left. They have apparently concluded farmworkers. Farm people were excluded from the that bad as conditions are in an urban slum, they Social Security Act until the mid-1950's. Farmers, are worse in the rural slum they fled from. There is farmworkers, and workers in agriculturally re- evidence in the pages of this report to support their lated occupations are still excluded from other conclusion. major labor legislation, including the unemploy- This Nation has been largely oblivious to these ment insurance programs, the Labor-Management 14 million impoverished people left behind in rural Relations Act, the Fair Labor Standards Act, and America. Our programs for rural America are most State workman's compensation acts. woefully out of date. Because we have been oblivious of the rural poor, Some of our rural programs, especially farm and we have abetted both rural and urban poverty, for vocational agriculture programs, are relics from the two are closely linked through migration. The an earlier era. They were developed in a period hour is late for taking a close look at rural poverty, during which the welfare of farm families*was gaining an understanding of its consequences, and equated with the well-being of rural communities developing programs for doing something about and of all rural people. This no longer is so. it, The Commission is unanimous in the conviction They were developed without anticipating the that effective programs for solving the problems vast changes in technology, and the consequences of rural poverty will contribute to the solution of of this technology to rural pepole. Instead of com- urban poverty as well. bating low incomes of rural people, these programs The facts of rural poverty are given in detail have helped to create wealthy landowners while later in this report. They are summarized in the largely bypassing the rural poor. paragraphs that follow. Most rural programs still do not take the speed Rural poverty in the United States has no geo- and consequences of technological change into ac- graphic boundaries. It is acute in the South, but it is present and serious in the East, the West, and past the rural community performedthe services the North. Rural poverty is not limited to Negroes. needed by farmers and other ruralpeople. Tech- It permeates all races and ethnic groups. Nor is nological progress brought sharp declines inthe poverty limited to the farm. Our farm population manpower needs ofagriculture, forestry, fisheries, has declined until it is only a small' fraction of and mining. Other industries have notreplaced our total rural population. Most of the rural poor the jobs lost, and they have supplied too fewjobs do not live on farm& They live in the open country, for the young entries in the labor market. Larger in rural villages, and in small towns, Moreover, towns and cities have taken over manyof the contrary to a common misconception, whites out- economic and social functions of the villages and number nonwhites among the rural poor by a wide small towns. margin. It is true, however, that an extremely high The changes in rural America have rendered proportion of Negroes in the rural South and obsolete many of the political boundaries to vil- Indians on reservations are destitute. lages and counties. Thus these units operate on too Hunger, even among children, does exist among small a scale to be practicable. Their tax base has the rural poor, as a group of physicians discovered eroded as their more able-bodied wage earners left recently in a. visit to the rural South. They found for jobs elsewhere. In consequence the public serv- Negro children not getting enough food to sustain ices in the typical poor rural community are life, and so disease ridden as to be beyond cure. grossly inadequate in number, magnitude, and Malnutrition is even more widespread. The evi- quality. Local government is no longer able to cope dence appears in bad diets and in diseases which with local needs. often are a product of bad diets. As the communities ran downhill, they offered Disease and premature death are startlingly fewer and fewer opportunities for anyone to earn high, among the rural poor. Infant mortality, for a living. The inadequately equipped youngpeople instance, is far higher among the rural poor than left in search of better opportunities elsewhere. among the least privileged group in urban areas. Those remaining behind have few resources with Chronic diseases also are common among both which to earn incomes adequate for a decent living young and old. And medical and dental care is and for revitalizing their communities. conspicuously absent. For all practical purposes, then, most of the 14 Unemployment and underemployment are major million people in our poverty areas are outside our problems in rural America. The rate ofunem- market economy. So far as they are concerned, the ployment nationally is about 4 yercent. The rate dramatic economic growth of the United States in rural areas averages about 18 percent. Among might as well never have happened. It has brought famworkers, a recent study discovered thatun- them few rewards. They are on the outside looking deremployment runs as high as 37 percent. in, and they need help. The rural poor have gone, and now go, to poor Congress and State legislatures from time to schools. One result is that more than 3 million time have enacted many laws and appropriated rural adults are classified as illiterate& In both large sums of money to aid the poverty stricken educational facilities and opportunities, the rural and to help rural America. Very little of the legis- poor have been shortchanged. lation or the money has helped the rural poor. Most of the rural poor live hi atrocious houses. Major farm legislation directed at commercial One in every 13 houses in rural America is officially farms has been successful in helping farmers ad- classified as unfit to live in just supply to demand, but it has not helped Many of the rural poor live in chronically de- farmers whose production is very small. And be- pressed poverty-stricken rural communities. Most cause the major social welfare and labor legislation of the rural South isone vast poverty area. Indian has descriminated against rural people, many of reservations contain heavy concentrations ofpov- the rural poorfarmers and farmworkers par- erty. But there also are impoverished ruralcom- ticularlyhave been denied unemployment insur- munities in the upper Great Lakes region, in New ance, denied the right of collective bargaining, and England, in Appalachia, in the Southwest, and in denied the protection of workman's compensation other sections. laws. The community in rural povertyareas has all This Commiision questions the wisdom of mas- but disappeared as an effective institution. In the sive public efforts to improve the lot of the poor in our central cities without comparable efforts to dents of rural America equality of ppportunity meet the needs of the poor in ruralAmerica. Un- with all other citizens. This must include equal fortunately, as public programs improve thelot access to jobs, medical care, housing, education, of the urban poor, without makingsimilar im- welfare, and all other public services, without re- provements in conditions for the rural poor,they gard to race, religion, or place of residence. provide fresh incentive for the rural poor to (2) The Commission recommends, as a matter migrate to the central cities. The only solutionis of urgency, that the national policy of full em- a coordinated attack onboth urban and rural ployment, inaugurated in 1946, be made effective. poverty. The need is even greater in rural areas than in The Commission has endeavored to chart a urban areas. The Commission urges that this need course to wipe out ruralpoverty. Emphasis has be given priority in legislation and appropria- been placed On the problems of poor ruralpeople, tions. To the extent that private enterprise does and problems of impoverished ruralcommunities. not provide sufficient employment for all those Changes in existing programs and thedevelop- willing and able to work, the Commission believes ment of new programs are considered.Action on it is the obligation of government to provide it the immediate needs of the rural pooris empha- (3) The Commission believes that the United sized, as well as action to change the conditions States has the resources and the technical means which make them poor. Human developmentand to assure every person in the United States ade- the physical resources needed for this development quate food, shelter, clothing, medical care, and are stressed. Improvingthe operation of the pri- education and, accordingly, recommends action vate economy in order to providerural people toward this end. Millions of rural residents today with better opportunities for jobs and adecent are denied the opportunity of earning-a. living. living is emphasized. The Commission believes it is the obligation of It is the firm conviction of the Commissionthat society and of government, to assure such people the complexity of the problems of rural poverty enough' income to provide a decent living. In order preclude the success of a single program or ap- to achieve this, basic changes are recommended in proach. Programs addressed to immediate needs public assistance programs. will not erase the underlying conditions creating In some rural areas of the United States there and perpetuating rural poverty. Programs ad- is not only malnutrition but hunger. Existing pub- dressed to these conditions will not immediately lic programs for food distribution to those in need help the poor. The Commission's recommendations have failed to meet the need. The Commission rec- complement and reinforce one another. In total, ommends that the food stamp program be ex- the recommendations will go far to solve the prob- panded nationwide and that eligibility be based lems of rural poverty. upon per capita income. Food stamps should be The Commission is convinced that the abolition given to the poorest of the poor without cost. of rural poverty in the United States, perhaps for (4) The Commission recommends a thorough the first time in any nation, is compltely feasible. overhauling of our manpower policies and pro- The nation has the economic resources and the grams, particularly including public employment technical means for doing this. What it has lacked, services, in order to deal effectively with rural thus'far, has been the will. The Commission rejects unemployment and underemployment. The Com- the view that poverty, in so rich a nation, is in- mission deplores the fact that the richest, most evitable for any large group of its citizens. powerful nation in history compels millions of its Elsewhere in this report there appear the recom- citizens to engage in aimless wandering in search mendations of the Commission in detail. These of jobs and places to live. The recommendations of recommendations call for action by all branches of the Commission aim at a comprehensive and active governmentlocal, State, and Federalas well as manpower program which can be an effective by private individuals and groups. The major weapon against poverty. thrust of the recommendations is discussed briefly (5) The Commission recommends extensive in the paragraphs that follow. changes in our rural education system, ranging (1) The Commission recommends that the from preschool programs to adult education. Rural United States adopt and put into effect immedi- schools must be brought up to par with urban ately a national policy designed to give the resi- schools. The educational system must reclaim xi youth and adults who drop out :before obtaining across urban-ruralboundaries, to cooperatively sufficient education to cope with the complexities plan and coordinate programs foreconomic of today's world. An educational extension service development. To finance development,the Com- is recommended to help teachers and schools meet mission recommends Federal grants, loans,and in- the needs of all students. dustrial development subsidies, as111 as. State (6) The Commission is deeply concerned at the and local tax reform. evidence of disease and the lack of medical care in (10) The Commission believes that without rural areas. The Commission, therefore, recom- citizen responsibility, which includes theactive mends rapid expansion of health manpowerboth involvement and participation of all, antipoverty professional and subprofessionalin rural areas, and economic development programs will flounder. and the establishment of Community Health Cen- Therefore, the Commission recommends thatin- ters which can focus on the health needs of rural creased attention be given to involving the poorin people. the affairs of the community, on both local and (7) The Commission recommends development areawide levels. Specific suggestions are madefor and expansion of family planning programs for improving the effectiveness of the antipoverty pro- the rural poor. Low income families are burdened grams of the Office ofEconomic Opportunity and with relatively numerous children to feed, clothe, the Department of Agriculture. and house. They are prepared psychologically to (11) The Commission recommends that the accept family planning. As a matter of principle, Federal Government re-examine itscommercial they are entitled to facilities and services to help farm programs in order to make sure that adjust- them plan the number and spacing of their ments in the supply of farm products are notmade children. at the expense of the rural poor. Public programs (8) The Commission recommends immediate are recommended to enlarge smallfarm operations action to provide housing in rural areas by public and to retire submarginal land from commercial agencies and puts special emphasis on a program production, but with safeguards protecting the in: providing rent supplements for the rural poor. The terest of low income families living on submar- Commission further recommends that a single ginal land. The Commission also recommends that unified housing agency be made responsible for the development of additional farmland with pub- housing programs in rural areas and that credit lic funds cease until the nation's food and fiber terms be made more responsive to need. The Com- needs require this development. mission also urges a substantial increase in appropriations for Indian housing. (12) Without effective government at all levels, (9) The Commission believes that the over- the recommendations in this report will not result lapping patchwork of districts, organizations, in the eradication of rural poverty. The Commis:- plans, and programs for development impedes the sion recommends changes in program development economic development of lagging and poverty- and administration to facilitate and encourage the stricken areas and regions. It, therefore, recom- effective involvement of local, State, and Federal mends the creation of multicounty districts, cutting governments. ,177, .77

Statement of Beliefs The National Advisory Commission on Rural Poverty has made its recommendations on the basis of specific beliefs to which all members of the Commission subscribe. These beliefs are as follows: 1. The United States today has the economic and technical means to guarantee adequate food, clothing, shelter, health services, and education to every citizen of the Nation. 2. Involuntary tragedy is a tragedy under any circumstances and poverty in. the midst of plenty is both a tragedy and a social evil. 3. The rural poor are not a faceless mass. They are individual human beings. All programs designed to eliminate poverty must therefore give paramount consideration to the rights and the dignity of the individual. 4. Every citizen of the United States must have equal access to opportunities for economic and social advancement without) discrimination because of race, religion, national origin, or place of residence. 5. Because rural Americans have been denied a fair share of America's opportunities and benefits they have migrated by the millions to the cities in search of jobs and places to live. This migration is continuing. It is therefore impossible to obliterate urban poverty without removing its rural causes. Accordingly, both reason and justice compel the allotment of a more equitable share of our national resources toimproving the conditions of rural life. 6. All levels of governmentlocal, State, and Federalmust accept responsibility for public measures to eliminate poverty and must be aware of the effect that any of their activities have on the poor. T. Inasmuch as the consent of the governed is a basic tenet of American government, the rural poor must be given a voice in the planning and administration of public programs designed to eliminate poverty. 8. We can no longer evade the fact that far too high a proportion of our rural population is unemployed and that the national policy of full employment is not effective. We believe it to be an obligation of private enterprise and of government working together to provide employment at adequate wages for all persons able and willing to work 9. The cost to the Nation of rural poverty is much too high to permit its continuance. We believe the time for action against rural poverty has arrived. Contents

Page Letter of Transmittal Members of the Commission Members of the Committee iv Members of the Staff Q. Task of the Commission vi Preface_ Summary ix Statement of Beliefs xin Part I CHAPTER 1. The Fourteen Million .3 2. Six Reasons for Action Now 11 Part II 3. Creating a Favorable Economic Environment 17 4. Manpower Policies and Programs 25 5. EducationHelping People To Help Themselves 41 6. Health and Medical Care 59 7. Family Planning Programs 75 8. Helping Those in Need 85 9. Rural Housing 93 10. Area and Regional Development 103 11. Community Ofganization 121 12. Conservation end Development of Natural Resources_ 133 13. Adjustments inAgriculture,Forestry,Fisheries, and 141 14. More Effective Government for Rural Opportunity 149

Chapter 1

The Fourteen Million

It is a shocking fact that in the United States TABLE 1. Persons in poverty, by rural and /urban today, in what is the richest nation in history, close residence, March 1965 to 14 million rural Americans are poor, anda high proportion of them are destitute. By their poverty Persons at all Poor,persons I income levels they are deprived of freedom to share inour eco- Item Number Percent Number Percent.Per- nomic abundance. distri- (mil- distri cent We can no longer permit public policy to ignore lions) button lions) buttonpoor the rural poor. For if we do, we shallsee a con- United States______189.9100.033.7100.017.7 tinuing movement of rural people toour central cities. As the summer of 1967 illustrated, the slums Total rural 55.3 29.1 13.8 40.925.0 and ghettos of the city breed hatred and violence, which is no solution to the problems of either city Farm 13. 3 7.0 3. 9 11. 629. 3 or country. Nonfarm 42.0 22.1 9.929.423.6 It is to the problems of the rural poor that this Total urban 134.6 70.919.9 59.1 14.8 report is addressed. Who are the ruralpoor ? Where are they ? How poor are they ? What can be done Small cities 27.1 14.3 6.4 19.023.6 to wipe out their poverty ? Metropolitan. areas 107.5 56.6 13.5 40.112.6 It may surprise most Americans to know that there is more poverty in rural America,propor- Central cities.._ 58.6 30.810.2 30.317.4 tionately, than in our cities. In metropolitanareas, Suburbs 48.9 25.8 3.3 9.8 6.7 one person in eight is poor, and in the suburbs the ratio is one in 15. But in ruralareas one of every I Income data relate to 1964. Poverty statistics pre- four persons is poor (table 1). sented here are preliminary estimates, based on the Social Security Administration poverty lines for urban and rural Some 30 percent of our total population live in nonfarm, but using 85 percent rather than 70 percent as rural areas, but 40 percent of the nation'spoor live the farm-to-nonfarm ratio. The methods used in deriving there. Within this total thereare nearly 3 million this ratio and the above data are discussed in a technical families, plus a million unattachedpersons. report, to be published. Percentages may not add to 100 Contrary to popular impression, all the rural because of rounding. poor do not live on farms, nor are all of them pockets of poverty. Poverty refuses to stay in Negroes. Most live in small towns and villages. pockets. But there are areas of heavy concentration Only one in four of these rural families liveson a. of rural poor. And there is a continuing exodus to farm. And, of the 14 million ruralpoor, 11 million towns and cities. are white. Poor people live everywhere, including cities, It is true that a higher proportion of Negroes but some areas and regions have such heavy con- than of whites are poor-three out of five rural centrations of rural poverty that they stand out. nonwhite families are poor. Theyare heavily con- Much of the South, as shown in figure 1, has a centrated in some areas. In fact, 90 percent of them heavy concentration of rural poverty. Outside of are clustered in the poorest counties in America. the South, Indian reservations, noticeably in the Low income white peopleare more widely scat- Southwest and the upper Great Plains, contain tered as well as more numerous. distinct concentrations of the rural poor, along with New England and the upper Great Lakes. Where are the Rural Poor? Within the South several areas of rural poverty can be distinguished. Appalachia perhaps has be- It has become popular to talk of "pockets of come best known in recent years, but there is also poverty." The truth is thereare no such things as the Coastal Plain to the east, the Ozarks to the

176-698 0-67-2 3 ECONOMIC STATUS OF RU AL I 1 POPULATIO TA I / ib* tst. #454, r '4: *Counties grouped according to composite ranking of .*),k it *' COUNTY RANKING*CE)r:=3 NextHighest to highestfifth fifth (1) Dependency ratio- a retie of rural persons under 20 and the following faders for rural persons and families: 1--"$ MIONEMI Lowest NextMiddle tofifth lowestfifth fifth (2)(3) Number Percent of ofrural rural families families with with less under65 than yearsSi $3,000 more53,000 of age,years income. income, 1960 Asf 1959 1959age to rural persons 20 through 64 < 4 Source: 1960 Census of population (4) Percent of mil perms 25 years old end over with less then I U. S. (5)DEPARTMENT Percent of rural housing OF units AGRICULTURE deteriorating7 years ofand schooling dilapidated, completed, 1960 1960 FIGURE 1 HAWAII NEG. ER.S 3571..65 (3) 1 ALASKA ECONOMIC. RESEARCH SERVICE west, the Mack Belt of the Old South, and the that the poorly educated lack. The less the school- Mexican-Americanconcentrationsalongour ing, the poorer the job and the lower the income. southern border. Even withina State, distinct Lacking in education, the rural poor either con- areas with high concentrations of povertymay be centrate in low-paying jobs on the farm or else- identified, as in the Delta, and the hillcountry of where in rural areas, or swell the ranks of the Mississippi. unemployed and the underemployed. Negroes, Indians, and Mexican Americans suffer Symptoms of Poverty even more than low income whites from unemploy- Average family incomesare low in poverty ment and underemployment. Their schooling, as areas, but there are many additional symptoms of a rule, is even less than that of whites in the rural poverty, as indicated by the factors used to reflect poverty areas. Negroes emerging from the share- economic status in. figure 1. A low level of formal cropper system often migrate to urban ghettos. schooli.ng among adults parallels low income levels. Those who remain in rural areas are frequently Rural housing is dilapidated and in need of exten- unemployed, and when they do have jobs, they are sive repair or replacement. Relatively highpro- found mostly in wage work; few become farm portions of children, youths, and the aged depend operators. Indians on reservations live in poverty, on those of working age. And the working-age in the main, with few opportunities for work at population is less likely to be in the labor market, well-paying jobs. Off the reservations Indians with the result that the burden of workers insup- rarely find it possible to get a better paying job, porting-nonworkers is heavier than inmore pros- if they find one at all. perous sections of America. At best, job opportunities in rural areas are When a family's income is less than $3,000, that scarce, and in many places they are getting scarcer family is usually definedas poor:. In the poverty year by year. For rural people living within com- areas of rural America, however, an income of muting distance of nonfarm jobs, it is sometimes $3,000 per family is the exception,not the rule. Of possible to combine farming with a variety of jobs the poor families in theseareas, more than 70 per- off the farm, but in isolated areas the need for cent struggle along on less than $2,000a year, and one family in every four exists, somehow, on less such opportunities is far greater than the supply. than $1,000 a yeir.2 At that, even with every adult member of the fam- Schooling in low incomeareas is as inadequate ily working, many families in rural povertyareas as incomes. Rural people generally havepoorer don't make enotigli, for decent living. schooling than city people, and ruralpoor people In fact, some rural families make so little that are severely handicapped by lack of education. their children are not only malnourished but liter- Few rural poor adults attain the general rural ally starving, as a team of six physicians dis- average of 8.8 years of school completed. Male covered on a 1967 survey in the rural South. The farm.laborers between 55 and 64years of age and physicians summed up their findings in these earning incomes of less than $1,000average only words : 5 years of phooling. In sum, we saw children who are hungry and who are Moreover, low educational levelsseem to be self- sickchildren for whom hunger is a daily fact of life and perpetuating. If the head ofa rural poor family sickness, in many forms, an inevitability. We do not want has had little schooling, hissons are often handi- to quibble over words, but "malnutrition" is not quite capped in their efforts to getan education.3 what we found ; the boys and girls we saw were hungry weak, in pain, sick; their lives are being shortened; they It is especially difficult for rural people handi- are, in fact, visibly and predictably losing their health, capped educationally to acquirenew skills, or get their energy, their spirits. They are suffering from hunger new jobs, or otherwise adjust to a society increas- and disease and directly or indirectly they are dying from ingly urbanized. This isas true on the farm as in themwhich is exactly what "starvation" means. urban industry, for modern farming requiresskills .. It is unbelievable to us that a nation as rich as ours, with all its technological and scientific resources, has 1 The measurement of poverty is discussed later inthis to permit thousands and thousands of children togo hun- chapter. gry, go sick, and die grim and premature death.4 2 Unpublished census data from 1966 Composite Survey of Economic Opportunity. HUNGRY CHILDREN. A. Special Report. SOUTHERN RE- 1 CURRENT POPULATION REPORTS, Series P-20,No. 182. GIONAL COUNCIL. Atlanta, Ga.

5 Population Growth and Migration as the presence of millions of poverty-.ridden ex- ruralites nowin,cities testifies. Rural low income areas have lost population for a number of years, mainly through the exodus of rural farm people. From 1790 to the present, the nation's population hasgrown from about 4 mil- The size of many low income families makes lion to nearly 200 millionpersons. In the process, escape from poverty extremely difficult. The it has switched from about 95 percentto 30 per- world over, large families have been traditional cent rural; As late as 1910athird of the entire in rural areas, and the tradition lives on in population was on farms, but this figure has rural America, especially in poverty areas. The dropped to only 6 percent. Themore than 6,000 result, of course, is that meager resources have to cities contained 125 millionpersons in 1960, or 70 be stretched beyond the breaking point to feed, percent of the total population. house, clothe, and educate the children. The strictly rural areas, andareas with the low- The birth rate has been declining in the nation est incomes, have the heaviest out- migration. as a whole since 1957, but. average number of births Consider, for example, the counties classedas all is still high in rural poverty areas. The 1960 statis- rurallacking a city (or place) of 2,500or more tics revealed that throughout the nationwomen population. By 1960,. aside from the natural in- 40 to 44 years of age had produced anaverage crease (births minus deaths) these counties had statistically speakingof 2.5 children each. In lost almost 2 million people,or 15 percent of their farm families with 'incomes of less than $2,000, the 1950 populations through migration. Incontrast, average was 3.7for,white mothers and 6.4 for the mainly urban counties (with 70percent or nonwhites. more of their population in urban centers) gained Persistence in rural America of the tradition more than 5 million, or about 6 percent through favoring large families is understandable. The migration. rural way of life, at one time, dictated the need The poorest counties, with median familyin- for large families. Before machines and modern comes of less than $2,000 in 1959, lost more than technology came along, the family farm needed 600,000 personsover a fourth of their 1950popu- children as potential workers. Religious beliefs lationthrough migration. In the DeepSouth, buttressed the tradition. And societymore or less for example,a mass migration of Negroes, mainly expected and sanctioned large families. to northern industrial centers, has helped reduce To add to the burden, the households of low southern rural poverty at theexpense_ of cities. income people in rural areas often include several At the same time, high income counties,with me- generations. This is partly from necessity, partly dian family incomes of $7,500or more in 1959, cultural inheritance. Rural people cling tena- increased through migration by about200,000 ciously to the custom of caring for the old folks people. at home. And when the children of friends and Americans are well-known for their geographic neighbors need a place to stay, theyare taken in. and social mobility, and the freedomto be mobile Then, when the youths and young adults of these is perhaps one ofour most cherished values. Many households go to the city in search of jobs, those seek to escape rural poverty by moving fromthe who are left have more dependents to support. farm .or small tow_ n to larger cities and intonon- The combination of few workers, low incomes, and farm work. But the fact remains that ifone's more people to support creates a dependency prob- origin is in agriculture, his chances ofremaining lem that is acute. there are relatively great. Given the lowincome The Residual Population levels of many farmers and farm workers,the tend- ency to inherit one's occupation serves as The mass exodus from low income ruralareas in an ob- recent years has meant that those left behind stacle to anescape from poverty. Studies' demon- are often worse off than before. Their chances of strate that persons entering the labor market escap- at the ing from poverty, or avoiding deeperpoverty, or lowest income levels have the greatest difficulty in even easing their burden have been reduced. Partly rising to better jobs and higher incomes.Many this is because the areas have toomany old people simply di) not make the transition. Migrationto a and children for the working-age population to city is therefore no guarantee of escapingpoverty, support. Partly it is because a smaller population, 6 spread too sparsely, cannot supportor build a poorwill probably rise. Justas the poverty budgets strong, flexible social and economic superstructure of the 1920's by today's standardsappear grossly in the area. Local governments, schools,and inadequate, Americans in the year 1980may have churches are dying from lack of support. Andas the same opinion of today's poverty lines. local facilities and services continue to decline, the chances for redevelopment diminish. If Billions Alone Were. the Remedy Figures on the age of heads of households in What would it cost to bring all thepoor of the rural poverty areas underline the hopelessness of United States above the poverty line, ifwe merely the situation. In 1965,among low income farnilia3 transferred money to them? 5 in these areas, one of every four heads of household In 1964, for the nation as a whole, it would have wac, 65 years of age, or older. Contrast this with cost about $12.5 billion to lift the incomes of the rural areas with adequate incomes. There, only poor above the poverty level. The sum of $12.5 about 7 percent of the heads of householdswere billion is about 2.6 percent of all personal incomes as old as 65. Nor is the picture brighter for heads in the United States. It would transfer roughly of households whowere younger but living in $1,000 to each of the "poor" households. To close poverty areas. Of the age group 22 to 54, halfwere the income gap for white households considered poor. poor, the total needed would be about $9 billion; for nonwhite households, the total needed would Measuring Poverty be $3.5 billion. The Concept and the Reality These estimates include both urban and rural poor. To close the income gap for the rural poor "Poverty" is a controversial word. Not everyone alone would require nearly $5 billion,° agrees on what it means. This applies to experts This does not mean that rural poverty would as well as to laymen. In the opinion of the Commis- be eliminated simply by adding $5 billion to the sion, poverty is partly inadequate income, but it incomes of the rural poor. Poverty cannot be ended goes much deeper than that. Poverty afflicts the that way. Even if the incomes of the rural mind and the spirit poor as well. were automatically increased by perpetual trans- Income is important in escaping from poverty, though not the whole fers of income through relief checks and other answer. Education and jobs welfare payments, many of thepoor would re- are also essential, and they can lead to higher in- main dependent, lacking in self-esteem,never able come. Income is obviously needed to buy the food, to make their own way or to win the respect of clothing, housing, schooling, and health services their neighbors. required by anyone in thismoney economy if he is to escape from povertyif he isto preserve How Income Needs of the Poor Vary some self-esteem. But how much income must a family have to get But poverty is muchmore : out of poverty ? The answer obviously dependson It is lack ofaccess to respected positions in size of family, the prices they have topay and, in society, and lack of power to do anything addition, the changing standards of living which about it. our society regards as essential. It is insecurity and unstable homes. The figure of $3,000 as the poverty line is useful It is a wretched existence that tends toper- as a rough approximation, though it cannot be petuate itself from one generation to the next. applied universally or indiscriminately. Forsome Low income is widely usedas an index of pover- households an income of $3,000 ismore than is ty; the number of low income people is takenas needed for a decent level of living. For other house- the number of poor, though thismay be an over- holds $3,000 is not nearly enough.7 simplification. The poverty line is the minimum The data presented here are preliminary estimates level of income needed to provide the kind of living based on : MOLLIE ORSHANSKY. RECOUNTING THE POOR-- that our society considersa basic human right. A FIVE YEAR REVIEW. Social Security Dui. April 1966, table Opinions as to where the poverty line really is, 5. or should be, have changed as America has become " This is a rough approximation, predicated on the fact more prosperous and more highly urbanized. Our that abo :* 10 percent of the poor are rural. HELEN H. LAMAZE. POVERTY : THE WORD AND THE REAL- standard of what isan adequate income for the n . Monthly Labor Review, July 1965, pp. 822-827. While it is possible to use the $3,000 income start, this Commission has conducted a study to level as a rough indicator of poverty, more refined determine the income needed to support a com- measurements are available. Poverty income levels parable level of living for farm, rural nonfarm, that vary by family size and type, and by farm and urban families. Preliminary, results indicate and nonfarm residence, have been developed by that farm families need about 85 percent, rather Orshansky in the Social Security Administration than 70 percent, as much income as a comparable, of the Department of Health, Education, and Wel- family in urban areas. Using this ratio, the Com- fare.8 These levels are so designed that they center mission estimated that the number of rural poor around the $3,000 family income level. A rural have been undercounted by 700,000 persons, or nonfarm family of four, for example, would need more than 20 percent" at least $3,200 to be above poverty. A rural non- In interpreting and using poverty income levels, farm family of seven would need $5,205. it is necessary to recognize that people whose in- The comparable income levels for farm families comes are a few dollars above the povertylevel were set at 70 percent of the nonfarm levels may nevertheless be in genuine distress andliving $2,240 for a farm family of four, for example. at a level below an acceptable one We have to keep This means that a farm family needs only 70 per- in mind that' training and educational programs cent as much income as a rural nonfarm or urban designed to help the poor can help the near-poor, family to be above poverty. We doubt that this is and should be so used. lating census data, in determining overall trends The urgent goal, of course, must be to help those and characteristics of the nation's poor. For this in greatest need. But an income level of $3,000 purpose they have served fairly well, aside from ought not to be thought of as an upper limit for accurate. The procedures and assumptions used in today's poor. Rather, is should be considered a deriving this 70-percent adjustment factor are threshold over which low income families may questionable and should be re-examined. pass to higher levels. This Commission firmly be- The Social- Security Administration developed lieves that antipoverty programs should not only its set of poverty income levels to be used in tabu- lift people to the poverty line, but help them to the shortcomings discussed above. They are a big rise as much further as their abilities will permit. improvement over the straight $3,000, which completely ignored variations in family needs. A Culture of Poverty However, their apparent precision has invited There is such a thing as a culture of poverty. misuse. Many Federal, State, and local govern- No one knows how many of the rural poor, have ment agencies have adopted these new poverty in- fallen into it, but it is common enough to deserve come levels, and are using them as eligibility attention. One witness who testified at a hearing criteria for welfare and antipoverty programs. before this Commission, the Rev. A. J. McKnight, The experts who developed the poverty levels are appalled at their being used in this way. They of Louisiana, described rural poverty this way : were not intended for this purpose and they are Many of these undeveloped people have developed a not adequate. culture of poverty. ... The poorthink differently ; they have a different sense of values. .. Take the conceptof Further analysis is needed to determine the ex- education ; To the middle class it stands for the road act income needed to raise a household above the to better things for one's children and one's self. To the poverty level. Regional variations in the cost of poor it is an obstacle course to be surmounted until the living remain to be taken into account. The fact children can go to work.... The poor tend to be fatalistic and pessimistic because that rural people often must travel great distances for them there is no future; everything is today. They do to buy necessities, or to obtain medical service, has not postpone satisfactions. When pleasure is available, yet to be allowed for. We still need indices of they tend to take it immediately. They do not save, be- poverty that will be both accurate and fair. The cause for them there is no tomorrow. The smug theorist of the middle class would probably Federal Government should take the initiative in deplore this as showing a lack of traditional American developing a standard set of poverty lines. As a virtues. Actually it is the logical and natural reaction of a people living without hope, without a future. 8 MOLLIE ORSHANSHY. THE POOR IN 1965 AND TRENDS, 1059-05, U.S. Dept. Health, Education, and Welfare, Re- ° Table 1 is based on the Commission's estimates. De- search and Statistics, Note. Feb. 16, 1967. tails are given in a technical report to be published.

8 We do not know how many people in rural can restore hope to many who are nowwithout it, America have lost all hope in a future. It is tragic and we can help the 14 million rural poor climb out and shameful that any have. of poverty. The nation can do this, that is, if there This Commission believes that by adopting the is the will to do it. program of action recommended in this report, we The time for action is now. Chapter 2

Six Reasons For Action Now That 14 million rural Americans have been left The blight in our central cities, as well as the behind, consigned to poverty and destitution, continued blight in rural America, is a national should be reason enough for action. Still, there are disgrace. The problems of rural America and. cen- those who will say, "Any American who is poor tral city America are closely linked through mi- has only himself to blame." The findings of this gration. A high proportion of the residents of our Commission are impressive proof to the contrary. cities formerly lived in rural areas. Many more are On the basis of these findings, the Commission one or two generations removed from arural offers the following six reasons which justify parentage. prompt and effective action against rural poverty. The senseless piling up of refugees from rural Fir8t, simple justice demands that we take action America in our central cities provides no solution now It is imperative that theUnited States pro- to the problems of rural areas or of the cities. vide rural poor people with the same opportunities Third, we must act because our antipoverty pro- to share in the fruits of our social and economic grams have bypassed the rural poor.Rural pov- progress that all other citizensenjoy. Today's rural erty is not as apparent as urban poverty. The poor have been left behind in thewake of basic rural poor, especially the white rural poor, are not changes in the fabric of rural life. Many are well organized, and have few spokesmen for refugees from an agricultural revolution. Others bringing the nation's attention to their problem& are refugees from similar revolutionsin mining The urban poor are more concentrated, organized, and other natural-resource-based industries. Cut and vocal in their call for help, and they receive off from opportunities to develop and prosper in more help than the rural poor. Rural poor people rural areas, they are ill-equipped to help them- have been shortchanged in public programs de- selves. They, and the communities in which they signed to improve transportation, housing, educa- live, are doomed to permanent and increasingly tion, health services, area development, and income severe poverty unless they get help. Justicede- maintenance. mands thatthey,not be isolated from the rest of Even though living conditions in central city society. America are intolerable, the continuing stream of Moreover, rural people have suffered severely rural migrants to our central cities strongly sug- because of discrimination. The incidence of poverty gests that conditions there are better than in our is especially heavy among Negroes, Mexican blighted rural areas. Americans, and Indian Americans living in rural This Commission questions the wisdom of mas- areas. A much higher percentage of these minor- sive public efforts to improve the lot of the poor ities than of the rural white is poor. Unless the in our central cities without comparable efforts to barriers of economic, social, and racial discrimi- meet the needs of the poor in rural America. There nation are removed, many of them will never have is danger that programs limited to the needs of our a chance to work their way out of poverty. central cities will be self-defeating. If economic Second, we must act now because the rural poor, and social conditions are greatly improved in our in their desire for the same goods and services en- central cities without comparable improvement in joyed by most urban people, continue to pile up in rural areas, additional incentives will be created the central cities of America. Yet, for many mi- for migration to the cities. In the end, therefore, grants who lack the training and skills for em- the special housing, education, employment, and ployment in the cities, the move is like jumping other special programs for the central cities may from the frying pan. into the fire. The result is lead to increased migration, thereby complicating frustration, despondency, and despair. the very problems we are trying to solve.

11 Even more important is the fact that there isa The changes in the social and economic fabric of growing restlessness in rural America. Many rural America are irreversible. Indeed, it is Un- people whose families have been deprived for gen- thinkable that we should try to reverse them. The erations are deeply resentful that little is being capacity of this nation to eradicate poverty stems done to meet their needs. National action which in from its rapid technological progress and its effect rewards the violence in the central cities is greatly expanded rapacity to produce. But the not unnoticed in rural America. Through such ac- same changes giving us greatly increased produc tion, the nation is telling rural poor people that if tion and improved levels of living have created they want effective programs, they must find more very difficult adjustment problems for many rural violent ways of making their demands known. This families and rural communities. And they will con- is a tragic message and it could have tragic conse- tinue to do so. Fewer people will be employed in quences. The problems of poverty in both rural agriculture, forestry, fisheries, and mining in the and urban America are so serious and so interre- future than today. lated that we cannot ignore one group while help- The job to be done is to restructure rural facili- ing the other. ties and services on a broader geographical base Fourth, we must act now because our rural com- and to connect them with their urbangounterparts. munities do not share the benefits of much of our There will be little or no abatement of rural nation's economic growth and technical change, poverty until this is done. We have to change our and conditions in these communities are destined traditional view of rural Americaits function, its relation with the rest of the nation; and the social to become much worse unless basic changes are and economic processes required to assure a better made. life for rural people. The early rural 'community was largely self- Fifth, we must act because our rural communi- sufficient. It, performed theservices needed by ties are unable to prepare people to participate in farmers and other rural people. But now most of the modern economy, and they will become increas- these services are performed in small to medium- ingly less able to do so unless there are concerted sized cities to which rural areas are linked by an and extensive changes. increasing number of channels. Today the area of There is in rural. America today a serious and an effective community is approximately 100 times widespread failure to prepare the people for par- that of the effective community of the early 1900'&1 ticipation in a modern and advancing economy. Many small communities have been unable to ad- In entirely too many instances the schools, li- just and keep pace with the changing economic braries, health facilities, churches, and govern- and social fabric of the more prosperous ones. Ac- ments in rural America have failed to develop pro- cordingly, many rural communities formerly programs to meet the needs of the people. The viding service functions for rural families now extensive unemployment and underemployment in rural areas attest to the fact that our record is not find their economic base eroded away. They, and good in preparing people for jobs and in helping the people within them, are trapped in poverty. them to .14-Jcate productive employment. Numerous rural centers have lost so much popu- State and local governments are not able to meet lation they have become ghost towns and resemble the needs of the people in most rural communities. abandoned gold-mining villages. Their economic At the same time that the citizens of rural com- and: facilities are not meeting the needs of munities have begun to demand the kind of services the people in the communities they serve. Nor can that cities offer, local governments are finding it they without help. Poverty in these communities harder and harder to provide even the basic promises to be self-perpetuating unless there are services. effective programs to reach and assist the people The winds of change have struck rural govern- who live there. ment, though local leaders often seem unaware of 11Csar. A. Fox. CHANGE: INTEREST ADJUSTMENTS : A it. Recent changes in rural America have rendered METAMORPHOSIS OF RURAL AMERICA. (Paper prepared for obsolete many political boundaries of villages and the Conference on Implications of Structural and Market Changes on Farm Management and Marketing Research.) counties. Too many local governments in rural Dept. Econ., Iowa State Univ., April 1967. areas operate on too small a scale to be practicable.

12 They are able to provide no more than the most the welfare of farm families with conditions on elementary public needs. Their tax base is eroding farms and the welfare of rural communities with as their more able-bodied wage earners leave for the incomes of farmers. These conditions no longer jobs elsewhere. prevail. In a very practical sense, rural government has Although many farm programs were originally been left behind politically as well as economically. developed with the express purpose of increasing Though these governments continue to operate as the incomes of low income rural families, they did they have for 100 years, the center of political not take into account the vast changes in technology power has shifted drastically. It has moved to- of the last 30 years. As a result instead of com- ward the more professional governments of urban bating low incomes among rural people, these areas and toward State and national governing programs have helped to increase the wealth of bodies. The important decisions on education, landowners while largely bypassing the rural poor. health, welfare, and other matters of vital public It cannot be emphasized too strongly that the concern are made, more and more often, at higher levels. Because local rural government has failed poverty in rural areas is self-perpetuating. There to change, it has isolated itself and its constituents will be little or no abatement and no real solution from the political mainstream. unless specific steps are taken to cope with it. The problems of overcoming rural poverty are Moreover, since the basic structure of rural complicated by the fact that many rural poor have America has been altered, the old programs are not lost almost all hope of improving their situation. sufficient for coping with problems of today. A Many have attempted to keep up with the tech- new approach clearly is required. nological tide in farming and have failed. Many The Commission has endeavored to chart a have been disillusioned in their efforts to obtain course to wipe out rural poverty. Emphasis is employment outside agriculture, forestry, fisheries, placed upon the many problems of the rural poor or mining. Their lack of the requisite skills to people. The problems of the people differ because earn a decent living is discovered too late. It will of differences among them in age, race, education, not be easy to motivate these people to try again. geographic location and other attributes. The B_ ut we must. diversity of their needs is recognized, and recom- Part of our problem stems from our unwilling- mendations are made to meet the diverse needs. ness to face realistically the limited employment In developing these recommendations, the Com- potential of today's modern farming, and tomor- mission gave consideration to problems of the row's farming. Likewise, we have failed to com- rural poor and to problems of impoverished rural prehend the limited job opportunities in forestry, communities. Changes in existing programs and fisheries, and mining. We have not developed good the development of new programs are proposed. employment opportunities for the people in rural The immediate needs of the rural poor are em- areas. Worse yet, we lack the kind and quality of phasized, but the necessity for changing the con- educational and manpower training services to pro- ditions that have made them poor is also stressed. vide rural people with skills necessary for other Better programs for human resource development employment. Without forthright action, jobs will and the physical resources needed for their de- get scarcer in rural areas, and the skill gap be- velopment are urged. Emphasis is placed upon im- tween urban and rural people will widen. proving the operation of the private economy so Sixth, we must act now because our public pro- as to provide rural people with better opportuni- grams in rural America are woefully out of date. ties for jobs and a decent living. Government is Many of them, especially your farm programs and called upon to complement the private sector vocational agriculture programs, are relics from an where necessary to erase rural poverty. earlier era. They were developed during a period In the Commission's view, the complexity of the when there was a strong belief that people born problems of rural poverty preclude the success of in rural America should stay there and work on a single program or approach. Programs em- farms, or in farm-related occupations. The pro- phasizing immediate needs will not change the con- grams emerged from legislation which equated ditions creating and perpetuating rural poverty,

13 and programs designed to change these deeply The costs to society for implementation of the rooted conditions will take time. The recommenda- Commission's recommendations will be high, but tions complement and reinforceone another. the costs will be immeasurably higher ifwe do not Taken together, the recommendations will elimi- implement them. Over the long pull, the gains to nate rural poverty, and thereby remove the basis society from wiping out poverty will far exceed for much of our urban poverty, the costs. The time for action is indeednow.

14 Flo Chapter 3

Creating a Favorable Economic Environmentt The American economy today is enjoying its we must find a way to guarantee a job to everyone greatest prosperity in history. Yet for many of who wants one. the rural poor, conditions are as bad as they were Low wages and underemployment are a severe during the Great Depression of the 1930's. handicap, even to many who have jobs. Of the 3 Three basic requirements have to be met if we million American families that were poor in 1965, are to reduce, let alone abolish, rural poverty. nearly 2 million were in poverty, despite the fact The first requirement is a job for every rural that the head of the family worked year round at person able and willing to work. A second require- a full-time job. Other, families who are not counted ment is that these jobs pay high enough wages to as poor still have a miserable existence because of provide a decent living. A third requirement is low wages. They are able to remain above the to end the discrimination against rural people, poverty level of income only by considerable sacri- whether by statute or by administration, which fice. To earn an acceptable income they must work has intensified rural poverty. long hours, often 6 or 7 days a week. Steady jobs are the key to an escape from pov- Part-time after-hours training or education, as erty. For example, among families headed by a an avenue of escape from poverty, is essentially male, 49 percent of families whose heads were closed to many poor people because they don't have unable to find work during 1965 were in poverty, time to attend classes. For example,' during his compared with 6 percent of those who worked testimony before this Commission, Mr. Tony year-round at full-time jobs.1 Orona, a farmworker from Phoenix, Ariz., told us Nearly 800,000 rural adults between the ages of how hard it was for him to get an education : 20 and 64 are unemployed. TJnderemployment is One of the last jobs I applied for, I was rejected because also a serious problem for rural people : those who I had no high school diploma. I have felt the need of an have jobs are .18 percent underemployed? education, but because of my job, I have no set hours. Every person willing and able to work must be There are days that I must work 10 or 12 hours. Conse- provided an opportunity for a steady jobwith quently, I cannot fit myself to a *schedule for school. wages high enough to lift him and his family Mr. Orona is one of 14 million rural people above the poverty level. caught in a vicious circle of poverty. We shall have We must look first to the private sector to pro- to find ways to break this circle. We must provide vide more jobs. It is absolutely necessary that our an economic environment that will enable the poor to help themselves. national economic policies be used to stimulate employment in the private sector of theeconomy as Full Employment rapidly as possible, while avoiding undue inflation. This is essential. But it is not enough. The hard- The economic well-being of rural people is core poor and those outside the mainstream of the closely attuned to that of the nation asa whole. economy are often left behind. Manpower train- For example, farmers are affected, as their farm ing programs and the employment service pro- income and off-farm employment opportunities grams, discussed in chapter 4, must be greatly im- tend to rise and fall with the level of national proved and expanded, to improve skills and to prosperity. Millions of other rural people work at nonfarm jobs in rural areas, or commute to urban bring workers and jobs together. But beyond this, jobs in nearby cities. Thus, rural people are strongly affected by business fluctuations. tSee comment by D. W. Brooks at end of this chapter. Unpublished data from Social Security Administration. This is particularly true of the disadvantaged. = Unpublished data, based on 1960 Census, from Eco- The inexperienced, the unskilled, the nonwhite, the nomic Research Service, U.S. Department of Agriculture. very young, the elderly, and the otherwise disad- .

vantaged workers are the last to be hired and the of full employment. Greater numbers of the poor first to be lad offin rural as well as in urban in- are hired, and their workexperience and produc- dustries. A typical example is the experience ofa tivity are enhanced. A 20-year-old with 2 years of large employer just after World War II. Large job experience is more likely to be hired than a numbers of Negroes had been hired during the war 20-year-old who has been idle for 2 years. Thus, to meet emergency production quotas. employment leads to more employment, while un- When the war ended a three-quarter reduction ensued employment begets more unemploymentanother in 'the compay's work force. With the strict seniority vicious circle. clauses which had become a standard feature of union Full employment is dependent upon the timely contracts, most of the Negroes lacked sufficient length of and appropriate choice of broad economic policies service to hold on to their jobs.' by the. Federal Government. Federal action must

On the. other hand, during periods of full ma- carefully steer between meamres Ihatunduly-de- ploy. 'limit and rapid economic growth,propor- press the economy and those that lead to serious tionately more jobs are created for disadvantaged inflation. groups than for advantaged groups. Let us look When business is booming, unemployment rates at the effects of an expansiOn in business activity decline but prices tend to rise. Inflation is most strong enough to raise employment by 1 percent painful to people with fixed incomes, such as those among the advantaged groupsadult white males on welfare, retirement pensions, and social secu- and females.4 Much greater increases would occur rity. As prices rise, their monthly checks just won't among the disadvantaged groups. For example, stretch as far as they used to. As a result, an employment would increase by- already inadequate level of living has to be cut 3.3 percent among adult nonwhite males; back even further. On the other hand, stable prices 1.7 percent among adult nonwhite females; are often accompanied by a lack of jobs, particu- 3.9 percent among nonwhite teenagers; and larly for disadvantaged groups, including many 2.6 percent among white teenagers. of the rural poor. Thus we are sometimes faced How is the general economic prosperity trans- with an inflation-unemployment trade-off. mitted to the individual worker ? During periods of rapid economic growth, the demand for, labor The Commission recommends- - increases as production increases. Shortages ofcer- 1. That the Federal Government take more tain types of labor eventually occur. As these labor vigorous action to reach the goals of the Em shortages appear, production bottlenecks result. ployment Act. of 1946. Employers respond in several ways. They lengthen the workweek and pay premium overtime wages. The Employment Act contains the following declaration of policy : If necessary, they lower job standards, hire persons with limited experience or low productivity, and The Congress hereby declares that it is the continuing policy and responsibility' of the Federal Government to provide on-the-job training. When skilled workers use all practicable means consistent with its needs and are hard to find, employers often redesign jobs, so obligations and other essential considerations of national that less skilled persons may be hired to handle policy, with the assistance and cooperation of industry, the more routine tasks. agriculture, labor, and State and local governments, to These side effects of full employment and ris- coordinate and utilize all its plans, functions, and resources for the purpose of creating and maintaining, in ing demand are very important to the ruralpoor. a manner calculated to foster and promote free competi- During prosperous times, more rural peopleare tive enterprise and the general welfare, conditions under able to find jobs, either in rural or in urban areas. which there will be afforded useful employment oppor- The inexperienced country lad is more readily tunities, including self-employment, for those able, willing, hired and given on-the-job training during periods and seeking to work, and to promote maximum employment production, and purchasing power.

3 NATIONAL INDUSTRIAL CONFERENCE BOARD. COMPANY EX- The Commission endorses this declaration of PERIENCE WITH NEGRO EMPLOYMENT.Personnel Policy Study policy. The goals, however, have not yet been No. 201, p. 2, chapter, "Lockheed Aircraft Corporation." reached. Millions of Americans are unemployed 1966. or underemployed. Economic fluctuations still oc- 4 LESTER C. THUROW. EMPLOYMENT GAINS AND THE DETER- MINANTS OF THE OCCUPATIONAL DISTRIBUTION OF NEGROES. cur, and during recessions even more people are (Paper presented at Univ. of Wis., May 12, 1967.) thrown out of work.

18 The Federal Government, in cooperation with Guaranteed Employment the States, should initiate comprehensive social planning, setting forth. concrete goals to be at- The Commission recommends- - tained by specified target dates. An analogous kind of planning is done, for example, in the Bureau 3. Thit the United States Government stand of Public Roads; they plan to have 41,000 miles ready to provide jobs at the national minimum of interstate highway completed by 1974. The wage, or better, to every unemployed, person Federal Government, in cooperation with the willing and able to work.f States, should set forth this kind of positive goal The rural poor want work. They want to earn in matters related to poverty. For example, it their own living, to be respected by their families should be definite public policy to reduce the na- and communities as responsible and capable tional unemployment rate from its current level people. near 4 percent to the lowest possible fractional rate There is plenty of work that needs to be done of unemployment, as rapidly as feasible. Monetary in rural areas. Evidence indicates that many of the and fiscal policies must be used in a timely manner, rural poor could be gainfully employed by private so as to keep the economy on a path towardvigor- businesses, provided they are given adequate train- ous growthand full employment whileabolishing ing to qualify for these jobs. Many others could long-term unemployment and reducing instability be hired in public service jobs, to repair the dilapi- in the private sector. Recession must be avoided, dated houses of the rural poor, or to build them for this severely hurts all sectors of the economy, new houses; to improve waterand sewerage sys- including the rural poor and other disadvantaged tems, or to build new systems where none exist groups of our economy, particularly those in the today. Hospitals and schools need more workers. poorer areas. Excessive inflation should also be Highways and parks need to be improved and avoided, but a moderate rise iri prices may be n.ec maintained. The rural poor can do many of these essary to, achieve and maintain full employment. jobs, while earning a reasonable income. Monetary and fiscal policy affect some regions The rural poor want jobs in their home com- and industries more than others. For example, the munity, or within reasonable commuting distance. tight money policy of 1965 caused a sharp drop in Many of them do not mind moving to a small new housing construction, leading to a sharp. de- or moderate-size city for work, butthey are Often cline in employment of carpenters and. other re- fearful of moving to the large metropolitan cen- lated.occupations. The burden of adjustment to ters. In small cities, "There is less to overcome, economic policy often falls most heavily on the less to unlearn, less to apologize for not know- poor. A more equitable and humane economic ing." 5 policy must be achieved. Public service employment is not' new to the United States. During the mass unemployment of The Commission recommends -- the 1930's, as many as 3.7 million persons at a time were employed through emergency programsof 2. That more resources be devoted to measur- the Federal Government. Today's public service ing and keeping track of the effects of monetary employment programs` are much smaller in scope, and fiscal policy, particularly the differential currently employing only 500,000 persons.° effects on various regions, industries, occupa As compared with the emergency programs of tions, and population groups. the 1930's, today's programs are quite different in their general approach, in that they are aimed Who benefits the least from expansionary eco- specifically at those persons and areas that have nomic policies ? Which areas and population been left behind in an otherwise prosperous groups are harmed when anti-inflationary policies economy. Today's programs are designed not only are put into effect ? Where are the concentrations See comment by David W. Brooks at end of this of hard-core poor who benefit least from national chapter. economic policy ? These areas and groups should 6 TEE COUNCIL OF THE SOUTHERN MOUNTAINS. MEN WANT WORK. Berea, Ky., December MO, p. 45. be identified, and higher priorities should be given 6 GARTH L. MANGUM. GOVERNMENT AS EMPLOYER OF' LAST to providing them with antipoverty assistance. RESORT. (Unpublished paper.)

276-696 0-67-3 19 to provide valuable public service in the nation's requirements. New Careers projects are intended schools, parks, hospitals, highways, and elsewhere, to improve physical, social, or cultural conditions. but also to provide education, training, and work The program is designed to meet critical local experience to the unemployed and underemployed labor shortages in such essential fields as health, poor. education, and public safety. Professional jobs The vast majority of Americans think public are restructured so that routine elements may service employment is a good idea. In a recent sur- be taken over by the trainees. Priority is given to vey, 66 percent of whites and 91 percent of projects that, while easing the workload of profes- Negroes favored "setting up large-scale Federal sionals, will lead to permanent jobs, with oppor- work projects to give jobs to all the miernployed," tunities for advancement, in fields that will benefit as one way to resolve race problems and prevent the poor. racial riots.' New Careers projects were recently funded to We are encouraged by three programs adminis- provide work experience opportunities for 2,706 tered by the Bureau of Work Programs, U.S. De- poverty level adults in 17 States. This is a very partment of Labor : Operation Mainstream, New modest start, but the program is being steadily Careers, and Neighborhood Youth Corps. These expanded. These projects are purposely located in are dual-purpose programs, providing training as communities where maximum prospects for future well as public service employment career opportunities exist. Some are located in large metropolitan cities, such as Hartford and Operation Mainstream Minneapolis; others are in smaller cities such as One half of the Operation. Mainstream funds go Roanoke and Durham, where the rural poor may to rural areas. This program's goal is "permanent have a better opportunity to participate. jobs, at decent wages, for poor adults with a history of chronic unemployment." Projects included Neighborhood Youth Corps in Operation Mainstream are designed to "improve The Neighborhood Youth Corps (NYC) is the both rural areas and towns or particular low-in- young person's counterpart of the New Careers and come areas." For instance, the projects may seek Operation Mainstream programs, designed to in- to decrease pollution, improve parks, rehabilitate crease the employability of persons under 22 years housing, or aid in extending education, health, or of age from poor families. The projects help young social services. men and women to gain work experience and earn To be eligible for this program a person must income. The young people receive special training be at least 22 years of age, must be unemployed, and career-related services that will develop their and must come from a family with annual income maximum occupational potential and encourage below the poverty lineas developed by the Social them to stay in school or return to school. Work as- Security Administration. signments in both the public and private sector At the present time, the number of public serv- provide experience in many fields including edu- ice employment opportunities available under the cation, conservation, health, food service, andrec- Operation Mainstream program is about 8,100a reation. This program includes more than 1,000 mere drop in the bucket. This program is provid- active projects, mostly in urban communities. ing valuable experience in recruiting and employ- About one third of the NYC enrollment oppor- ing the rural poor, but is should be greatly tunities are rural. expanded. The Neighborhood. Youth Corps is a promising form of public service employment for the rural New Careers poor, in that emphasis is given to preparing the New Careers is a new program designed mainly poor for a more productive career. NYC is dis- for urban areas. Only 12 percent of the fundsgo to cussed more fully in chapters 4 and 5. rural areas. This program is similar to Operation Mainstream, in terms of objectives and eligibility An Encouraging Start These three programs are an encouraging start. itOtTIS HARRIS. RACES AGREE ON GHETTO ABOLITION AND NEED FOR WPA-TYPE PROJECTS. The Washington Post, Aug. One undesirable aspect of these programs, how- 14. 1967. ever, is that the Social Security Administration 20 poverty lines are used as an eligibility requirement. of the population to become more uent at the These poverty lines were designed for other pur- expense of other segments. poses, and are not appropriate or sufficiently accurate to be used for determ. :ng eligibility in The Commission recommends- antipoverty programs. Many 1.3ople are in great 4. That the wages and hours provision ofthe need even though their incomes are a few dollars Fair Labor Standards Act be extendeduni- above some arbitrary poverty line. Furthermore, formly, with the same minimum wage and over- we favor programs that create an atmosphereof time pay, to all occupations. This recommenda- personal dignity. The onus of "poor man's jobs" tion should be put into effect as quickly as feasi- must be avoided. Otherwise the effectiveness of the ble, while giving local areas reasonable time to program will be greatly reduced. Many ofthe adjust to the higher wage rates.t poor may be ashamed to participate, andthose who do participate may be deprived of the self- Minimum Wage and Guaranteed Employment esteem that is so essential to human dignity and A minimum wage law does insure that a worker well-being. will be paid at the statutory wage rate, but it does It is the intent of the Commission's recommen- not guarantee that he will be employed. The law dation that public service employment be expanded sufficiently so that plenty of opportunities are makes it illegal for an employer to pay less than the minimum wage. available to the poor, even without making poverty On the other hand, some of the workers, par- an eligibility. requirement. Public service employ- ticularly the less productive ones, are likely to be ment programs must be expanded to blanket the laid off and may not be able to get a job at the entire labor force, guaranteeing everyone a job minimum wage. Thus, application of the minimum who wants one, without regard for age, sex, race, wage alone could worsen thecondition of the least color, creed, or residence. productive workers. This Commission believes that One of the most difficult obstacles to expansion an extension of the minimum wage, as recom- of public service employment projects in rural mended here, should be accompanied by a Federal areas is lack of transportation. Many of therural program of guaranteed employment.Together, poor, particularly those in isolated areas, findit these two recommendations would ha -e the effect very difficult to commute daily from their homes of pushing the wage rate in the unpleasant and to these jobs. In chapter 10, the Commission pro- undesirable occupations above the statutory mini- poses a publicly supported ruraltransportation mum wage. This is as it should be. If we as a system to help overcome this difficulty. society want these jobs done, we should expect to pay reasonable wages, throughhigher prices if Universal Minimum Wage necessary. It has long been the policy of this nation to As soon as a Federal program of guaranteed establish a national minimum wage. However, the employment at the national minimum wage is minimum wage legislation has covered only certain adopted throughout the economy, the minimum occupations. The occupational structure of the wage legislation will automaticallybecome. re- rural areas is heavily weighted with jobs not cov- dundant. All employers will have to pay the mini- ered by the minimum wage. Consequently, rural mum wage or better to attract anyworkers, America has been largely bypassed by the piece- because any job paying less would go unfilled. meal coverage of minimum wage legislation to date. Less productive workers are often forced out Difficulties in Attracting New Industries of the covered occupations, thus swelling the ranks The present low wages in some rural areas have of the unemployed or the underpaid labor force often attracted new industries. A nationwide uni- in jobs not covered by the minimum wage laws. form minimum wage would tend to destroy the This has the effect of further depressing wages in low wage advantage of these areas. This could the uncovered occupations. This Commission firmly believes it is unjust fSee comment by David W. Brooks at end of this and unethical for society to permit one segment chapter. 21 have the effect of -actually harmingmany of the As farms that hire large numbers of workers areas we are trying to help. incur higher out-of-pocket labor costs, prices of It The system of industry subsidies discussed in some farm products may rise. Family farms oper- chapter 10 could be used to offset,at least in part, ated largely with family labor will thus benefit this difficulty. The Commission would preferto indirectly from the minimumwage. In the short see the new rural industries subsidized by the run, consumers may have to pay a bit extra for nation aswhole, rather than the ruralpoor, who their strawberries, for example. It is the judgment are now paid pitifully low wages. of this Commission that if weas a society want strawberries, or other goods and services,we Effects on Agriculture and the Family Farm should expect to pay prices high enough topro- This country has just recently started experi- vide a decent wage for the workers who helppro menting with minimum duce them. wages for hired farm- The long-run situation may be quite different. workers. The 1966 amendments to the Fair Labor Farmers will search for Standards Act provide a $1 minimum ways to lower their costs. wage for Machines that were previously too expensive workers on most of the large farms hiring 500 soon man- become economicalas a substitute for higher days of labor (roughly 7 full-time men)or more priced labor. New machines will also be developed in any quarter of the previousyear This includes only about 1 percent of the farms. About 160,000 and adopted to replace the hand laborers,as occurred in the harvesting of tomatoes and cotton. workers, less than 6 percent of the people who do As these machinesare adopted, the increasing pro- wagework some time during theyear, are directly duetivity per worker might affected in that they were previously earning less more than offset the than $1 an hour and higher wage rate,so that the cost of production are now covered by the legis- could actually decline. This has happened many lation!' This minimumwage for farm wageworkers is scheduled to rise to $1.15 in times in the past as mechanized farming methods 1968, and to $1.30 have been adopted. in 1969. No provisionwas made for paying overtime to farmworkers for Thus, in the longrun, farmers would buy and more than 40 hours a fully utilize the new machines, week. or hire their services from custom operators, in orderto decrease Nor was any provision made to extend thecov- unit costs of production. erage to the other 2.6 million persons who do farm wagework. Another effect of the minimumwage could be a The $1 minimum continued reduction in farm employment, coupled NI.age is far below the poverty with an increase in farm service occupation% ley'el. At this wage rate, Em- a person working 40 hours ployment will probably rise in the industries a week at one job, 50 weeks a year, could that earn only manufacture, sell, and service these machines. $2,000 annual income. This level of incomecannot provide a decent level of living,even for an aver- Equal Opportunity for Rural People age-size family. Even the $1.30wage, scheduled for 1969, is inadequate. Andas prices rise, this One reason poverty is so widespread iin rural income provides even less purchasing power. America is that many rural peopleare denied equal Recommendation 4 would extend the $1.40 opportunity. Racial discrimination isa severe an handicap to minority hour minimum wage to all occupations, withthe groups, which account for $1.60 rate becoming effective Feb. about one-fourth of the ruralpoor. And rural 1, 1968. Over- people of all meal white and nonwhite, time pay would be paid after 40 hoursa week, at have been neglected and discriminated against in muchof not less than 11/2 times the employee's regularrate of pay. the nation's social legislation and labor legislation. Racial Discrimination Data on Coverage of the minimum, wageare from the Department of Labor ; number of farm wageworkers is Despite the civil rights legislation ofrecent from FARM LABOR IN A CHANGING AGRICULTURE,PART 4, years, there is still widespread discrimination Senate Agricultural Appropriations Committee Hearings, 1967. The average annual number of hired farmworkers against Negroes, Indian Americans, Spanish in 1906 was about 1.4 million. About 2.8 millionpeople did Americans, Puerto Ricans, and other minority some farmwork for wages during the year groups. Discrimination blights every aspect of 7.

their lives. But perhaps most serious are the ob.. Rural people have been overlooked by much of stacles preventing some of our citizens from get- our social legislation. Until recently, for example, ting jobs, particularly the better paying jobs with the Social ,Security Act of 1935 excluded. farmers, .higher social status. Today's civil rights legisla- farmworkeis, and workers in farm-related indus- tion contains a number of gaps and weak points. tries. Most of the other social legislation has also Here are a few that are ymost relevant to rural excluded these people. Farm price-support pro- poverty. grams have pumped billions of dollars into rural State and local governments are allowed to areas. But since the payments from these programs discriminate; furthermore, they are not in- are related to the amount of land. and the volume chided in legislation requiring the use of merit of production, the rural poor have received few of standards in employment practices (hiring, the benefit& promotion, firing, apprenticeship and other Some of the antipoverty programs, such as Spe- training programs, and job assignments.) cial Impact and New Careers, are geared primarily Many small labor unions and small private to urban areas. In general, the rural poor have employers are also exempt. received far less than their fair share of antipov- Enforcement powers vested in the Equal erty funds. Rural areas contain 40 percent of the Employment Opportunity Commission are nation's poor people. And in view of the high weak and cumbersome. average cost of serving people in an areaof low The National Advisory Commission on Rural population density, these areas should actually get Poverty is strongly of the opinion that removal more than 40 percent of the funds. But in reality, of discrimination is.a basic step in reducing rural rural areas today receive less than one-third of poverty. the 0E0 funds. In earlier years they got even less. This is partly because local governments have The Commiseion recomment18--- been unable, and in some cases unwilling, to over- the anti- 5. That Title VII of the Civil Rights Act of come the redtape involved in getting 1964 be amended to cover all labor unions and poverty projects funded. employers regardless of size, including State Thus, the rural poor, have been subject to dis- and local governments. It is further recom- crimination on the basis of their residence. mended that the enforcement powers of the. Equal Opportunity Before the Law Equal Employment Opportunities Commission be extended to include cease-and-desist author- Many rural families have been thrust into great ity for the purpose of enforcing compliance hardship and privation because of unfair treat- with equal employment opportunity laws, where ment before the law. Many of the problems dis- necessary. closed by the recent Crime Commission report are doubly severe in rural areas. They Commission hopes that similar supportive A few of the situations that cause or perpetuate actions will be taken by State and local govern- rural poverty are as follows ments, and by private industry and labor unions. Excessively high bond requirements. Many of the poor must go to jail for minor offenses, or

Loeational Discrimination. for crimes they did not commit, because they cannot post bail. They lose their jobs, and have RUtal people in general, white as well as non- trouble getting new jobs after they get out of white, have been the victims of another more subtle jail. Meanwhile, their families suffer great kind of discrimination, based on locationthe fact economic, physical, andpsychological that they reside in rural areas. hardships. Lack of adequate legal counsel. A good lawyer The gommiesion reannmen48 can inform the accused of his rights, and can often protect him against unjust imprison- 6. That rural peo0e be given the same opportunity as urban people to participate in all so- THE PRESIDENT'S COMMISSION ON TAW ENFORCEMENT ,cial and economic programs designed to im- AilD ADMINISTRATION OF JUSTICE. THE CHALLENGE OF CRIME prove the quality of life. IN A FREE SOCIETY. Feb. 1967. Washington, 340 pp. . ment, thus preventing his family from be- the economic environment anclset the stage for the coming destitute. elimination of rural poverty. However, no one of to Lack of rehabilitation training and job place- these reconunendations by itself can do the job. ment. After a long jail term, a person comes A comprehensive and coordinated plan of action out with fewer marketable skills and less must be implemental if the economic environ- chance of getting an adequate job than when ment is: to be made really favorable. he went into jail. This perpetuates his misery And even with a favorable economic environ- and that of his family. ment, much more will be needed. The following All of these problems, plus many more too num- chapters present additional recommendations that erous to mention here, can and must be corrected are essential to the elimination of rural poverty. in rural as well as in urban areas. Memorandum of Reservation by David W. The Commission recommends-- Brooks Concerning Recommendation 3 7. That State and local governments give im- I question feasibility of government offering mediate attention to changing laws where nec- jobs to everyone at minimum wages because this essary and reforming correctional institutions would move many people from industry togov- so as to protect the rights of rural people. ernment but I certainly prefer giving jobs to people rather than giving guaranteed income to Discrimination in Labor Legislation them regardless of whether they workor not. Rural workers have been excluded fromcoverage Memorandum of Reservation by David W. of protective labor legislation that guarantees Brooks Concerning Recommendation 4 workers' rights to organize and to bargain collec- tively. Nor have they been protected against in- Although it is 'highly desirable for all farm jury onthejob,oragainsttheriskof labor, including owners of farms to have the bene- unemployment and disability. Until recently, fit of minimum, wages; I do not believe that the farm workers, especially, were untouched by these hours provision of the Fair Labor Standards d_ ct labor laws that most urban industrial workers take can be properly extended to agriculture. for granted. Even, today, most farmworkers and In the case of industry, hourscan be planned, many rural nonfarm workers are excluded. but not in agriculture due to weather conditions. Great injustice has been done in extending cov- All farm workers must work long hours during erage of certain types of labor legislation to some certain periods in order to preventa great loss of workers and not to others. The Commissionpro- production. Requiring payments for overtime work poses to end the traditional discrimination against during these periods: would force agriculturetopay rural workers by extending the protective labor a higher average wage rate than ind.ustry. legislation to cover all workers. If agriculture is required to pay suchwages, it is absolutely necessary, simultaneously, that the The Commission recommends law provide parity -prices and income foi farms paying such wages. 8. That the provisions of the National Labor and Management Relations Act, workmen's Memorandum of Reservation by David W. compensation laws, unemployment insurance, Brooks Concerning This and Following and old age survivors and disability insurance Chapters (OASDI) be extended uniformly to all workers. Although I have refrained from makinga mi- A Combined Effort Is Needed nority report, in my opinionsome parts of the report cover matters which have little, ifany, The Commission believes that the recommenda- connection with the problems of rural poverty and, tions proposed in this chaptercan greatly improve therefore, should have been eliminated. Manpower Policies and Programs

Every year nail lions of Americans pack up their fisheries is declining faster than new jobs are being belongings and hit the road in search of a job and a created in rural areas by construction, manufac- better place to live. A good many end up in the turing, and service industries. At that, the rural ghettos of our cities. Others continue to wander, unemployment get few of such new jobs asare swelling the ranks of migratory labor. created. They often don't know the job exists, they As a nation we have never really been much lack the skills needed, and they can't finance a move concerned about all this. We let the wandering go to a new job. So they remain poor. on and on without guidance.We may deplore the Nationally, the unemployment rate has been iong-term consequences, when they take the form _running slightly under 4 percentIn rural areas of violent riots in our cities, but deploring the con- the rate is much higher. sequences doesn't remove the causes. The seasonal nature of farmwork intensifies the It shouldn't be beyond the wit of man to provide problem. Not only is unemployment in agriculture some guidance to a potential migrant. At the about twice the annual average in nonagricultural moment, however, we are not equipped to tellhim industries, but the monthly employment rate also where he can get a job, or what the pay will be, or fluctuates sharply. In July of 1966 the agricultural whether it is a job he can do, or how he can be unemployment rate was 3.5 percent But earlier in trained for a newjeb, or where he can live, or what the year, in February and March, it was 11.6 per- the rent will be, or whether he ought to take his cent. In nonagricultural industries the unemploy- family with him. We give him no choice but to try ment rate did not fluctuate by as much as one per- 'a leap in the dark It shouldn't surprise us thatthe centage point throughout 1966, and the averagefor result is often tragic. the year stayed close to 8A percent. No one in his right mind would attempt to pre- As a matter of fact, the situation is a good deal vent Americans from moving from one place to worse than the figures on unemployment suggest another in search of jobs and homes. Some move- Official statistics count a rural resident as em- ment of this sort is desirable and inevitable in a ployed if he works part-time, or a few days a free society. But aimless migration, born of des- month. The truth, of course, is that he is often peration, by millions of Americans every year, underemployed, and almost as badly oiT as if doesn't make sense in a rich nation. totally unemployed, We have evidence that under- Not every low income family in rural America employment is widespread in rural areas, and as wants to move to the city, nor should it have to acute a problem as unemployment. Nor do the people who roam the highways every Using 1960 census data the United States De- year in search of a job and a place to live do so partment of Agriculture has estimated the amount because they have the wanderlust. They migrate of underemployment among employed rural resi- because they don't know what else to do. There is a dents,' The figure is 18.3 percent for all employed way to attack this problem. The first step isto agree rural residents; 16.3 percent for males. and 28.7 on a nationwide manpower program,covering both rural and urban America, and the second percent for females. step is to put it into effect. So far, we have taken The rate of underemployment was 8.8 percent for rural nonfarm males, and 20.4, percent for fe- neither of these steps. This chapter explains what a nationwide man- males. The rate of underemployment was highest among rural farm residents : 36.6 percentfor fe- power program Mvolves and makes specific recom- males and 37.1 percent for males. mendations for building it. The current situation in rural America is this;. I Unpublished data from the Economic Research Service, Employment in agriculture/ forests/ mi yes, and U.S. Department of. Agriculture. We find high rates of unemployment andunderemployment among operators of small farmsas well as among hired farmworkers andmigratory laborers. Among rural people working inforests, More manpower servicesare needed to assess the mines, and fisheries,we find a pattern of irregular capabilities of rural workem to determinetheir employment, low wages, andpoor working problems, and to help them toprepare for jobs conditions. that afford self-esteem, dignity, andearnings to There aren't enough new jobs openingup in lift them out of poverty andto prevent others rural areas to wipe out rural unemploymentor from falling below the poverty line. Theavaila- make a dent in rural poverty. Evenwhere new bility of criticalmanpower services is an integral jobs do appear, the applicant needs helpin ac- part of meaningful job opportunity formany quiring a new skill for the job, in adjusting,to new rural workers and should be accessibleto them in working conditions,or in moving to a new location. their immediate communities. Some people in rural Americaare able to find The Federal-State Employment Service system new jobs and acquire new skills with little assist- is the; logical organization through whichadequate ance. Some climb out of poverty unassisted by manpower services can be extended to rural and moving out of a povertyarea or by shifting from urban workers. However, certain legislative,or- farm to nonfarm occupation& But formany others ganizational, administrative, and programatic the move from farm to city,or from farm to lion- changes in the employment serviceare required to farm job, merely transfers their problemsand their transform it intoa viable and active force` in rural poverty. Still others, because ofage or family ties communities. and the lack of employment, haveto stay where The legislative authorityon which the employ- they are, boxed in. ment service system is based should be updated. Since 1933, when the employment servicewas A Comprehensive and ActiveManpower established by the Wagner-Peyser Act,the role of Program this agency in the job market hasexpanded and shifted. Since its inception, the employment Changes in our rural serv- economy are coming so ice has been concerned with finding jobsfor work- fast, and they areso sweeping, that few rural ers in private mad public employment. In the de- workers can adjust to them withouthelp. A man- pression years of the 1930's this missiontook the power program can provide that help. form of referring workers to relief To be effective, the and public program must meet the works program& With thepassage in 1935 of the specific needs of both workers and employer& The Social Security Act and the provisionfor State manpower services established by theprogram unemployment insuranceprograms, the employ- must be readily accessible throughout thecountry ment service was given another responsibility and also flexible enough to meet uniqueproblems that of providing "work tests"necessary for the of workers, employers, and labor marketareas. determination of workers' eligibility forunem- To be effective theprogram will have to meet ployment benefits, these requirements: Subsequent legislation, which providedfor ben- Serve specific needs of both workers efits to returning servicemen and women from employers. World War II and the Korean c,onfliet,further Make manpower services accessible to work- increased the responsibility of theemployment ers and employers in convenient locations service for administering parts of theseprograMs throughout the country. and for helping veterans to readjustto civilian Provide enough flexibility to meet thedifferent employment condition& problems of different workers, employers,and In the 1960's the employment servicewas as- labor market areas. signed new responsibilities in the implementation Be able to applymanpower policies actively of the Area Redevelopment Act, theManpower and aggressively at, local, State, andnational Development and Training Act, the Economic Op- level& portunity Act, the Trade Expansion Act, and'a Have the capacity to assist workersand em- host of other manpower legislation that requires ployers at the time they most, need it. job market informationprograms and the provision of manpower services to workers and employ - merit Service system should berestructured and era Public demands forassistance through the upgraded to occupy a key role in the implementa- employment service are likely to increase in future tion of the national comprehensive manpower years. program. . Yet the employment service does not operate as The local offices of the employment service should a well-integrated,efficient system with a clear 'continue to certify workers' eligibility for unem- legislative mandate comparable to the tasks that it ployment benefits based on the availability ofsuit- is expected to perform for all workerswho need able work. However, the employment service-and critical manpower services. The manpowerservices its local offices should be relieved of all other re- that the employment service is providing forrural sponsibilities pertaining to the processing of workers are especially deficient. Theseservices are unemployment compensation claims and the ad- nonexistent in some rural communities. Often they ministration of the unemployment compensation are most deficient wherethey are most needed. system. This would enable the employmentservice In addition to low quality of manpowerservices to concentrate on its mainconcernmatching in rural areas, a dearth of usable labor market in- workers with jobs, and related functions. Then, an formation, and the wide disparity and gapsin image of the employment service could be pro- available manpower services from urban torural jected that would attract workers and employers areas and even amongrural areas, the manpower who need these services. service system is fragmented. For example, the Farm Labor Service dealswith The Commission recommends- agricultural workers and employers as a special 2. That the Employment Service System and clientele. There are similar attempts to deal with the Unemployment Compensation Systembe migratory farm labor and other segments of the separated, legally and administratively. labor force. Such fragmented approacheshave failed to meet the needs of their clientele, mainly To some extent, the poor quality of manpower because the employment and manpower service services available to rural workers generally, and needs of many of these workers extend far beyond the' wide disparity of manpower services among re- the areas and industries to which they are attached. gions, States, and areas, can be attributed tothe Some agricultural workers need services that relate current organization of theFederal-State Em- to nonagricultural employment, someurban work- ployment Service System. Actually, there are50 ers need manpowerservices that relate to agricul- State systems and a Federal system, allfinanced tural employment or to nonfarm employment in totally by the Federal Government. TheFederal rural areas. system consists of a national office and11 regional Because of the direct linkages and interrelations offices. The national office hasjurisdiction over the between rural and urban areas, and farm and non- regional offices. However, neither the national of- farm occupations and industries, a comprehensive fice nor the regional offices have realjurisdiction approach to meeting the needs of all workers in or authority overthe State systems. The regional an integrated andcoordinated fashion is sorely offices serve more or less as liaison and maildrops needed. between the national office and the States.The national office can suggest guidelines andstandards The Commission recommends through the regional offices for the States.How- ever, such guidelinesand standards can: be ignored 1. That a comprehensive Manpower Act be administrations enacted by Congress to establish a national pol- by the State employment service since they are subject to the authority andjuris- icy of providing necessary manpower services of he to all workers'. diction of State governments. Indeed, most top administrative offices inthe State systems are The new national manpoWer policy should make political appointments. Reportedly, in some States adequate provisions for the coordination of mist- almost all of the personnel in the Stateoffices are ing manpower programs, the establishment of nec- political appointees. The Commission does not essary new programs, and theinclusion of all such wish to condemn political appointmentin the em- programs into a national comprehensiveattack on ployment service per se. However, suchappoint- employment problems. The Federal-State Employ- ments should not be allowed if they arenot in the best interest of the employment service program. The present number of offices engaged in eraploy- In short, the. State employment service systems ment service activities is hardly enough to serve operate mostly as independent entities and there workers in more than 3,000 counties and a host of is no supervisory or regulatory body exercising cities, towns, and districts. real authority and leadership in coordinating them to the end of providing high quality, dependable The Commission recommends-- manpower services in all parts of this country. 5. Increased appropriation of money for the purpose of enlarging and upgrading the em- The C ommiesion recommends- ployment service staff, especially at the local 3. That the Federal-State Employment Serv- level, and for increasing: the number of employ- ice be reorganized to form a national unified ment service offices to the level required to system with appropriate assignment of respon- provide standard manpower services to work- sibility and authority at the Federal, regional, ers throughout this country. State, and local levels. If it is necessary to fed- A modernized employment service system will eralize the employment service to implement do little for rural workers without substantive fully a comprehensive manpower program in manpower programs tailored to finding jobs for all areas, the Commission would endorse such these workers and for helping them to qualify for a measure. the kind of work for which they are best suited. A comprehensive Employment Service Act The local offices of the employment service are should be enacted by Congress, and the Office of convenient points of contact with workers and em- Farm Labor. Service and other agencies primarily ployers who need or could benefit from certain concerned with such functions should be combined service& In the context of a typical labor market into one national employment service system. A area, a suggested "package" of manpower services beefed-up program should be structured for, the is presented in table 1. regional offices. New guidelines and regulations Manpower services extended to workers through with teeth in them should be formulated and the employment service system must be organized as manpower programs. From the standpoint of issued to the States. The national office, acting workers and employers in local labor market areas through the programs of the regional offices, throughout this nation, several related programs should cooperate actively and creatively with the can be discerned from sorely needed services. They States in extending standard manpower services include to all workers through the local offices. 1. A labor market information and placement The Commission recommends- program. 2. An individualized manpower assessment pro- 4. That the Federal Government participate gram. in the employment service programs at State 3. A job-oriented training and retrainingpro- and local levels, to whatever extent is neces- gram. sary to guarantee equitable and complete serv- 4. A manpower adjustment program. ice to all rural people. 5. A comprehensive and active approach to In part, the inadequacy of the current employ- manpower problems. ment service system in meeting the manpower In the remaining part of this chapterrecom- needs of rural workers can be attributed to insuf- mendations are offered to improve theseprograms ficient allocations of financialresources to this and to make them available to rural workers. important end. Currently, thereare about 2,000 local employment security offices in the entire Improving the Labor Market United States. Many of these offices operate part- Information System time. Many only accept unemploymentcompen.: If a worker is unemployed or underemployed, cation claims and do notengage in any employ- or if he contemplates entering the labor force, re- ment service activities. The range of services and liable information about available job opportuni- the qualifications of staff personnelvary widely. ties and conditions surrounding them is essential 28 yin

Job Oppertosities Labor Force Participaots Employers Employed and Unemployed

Ziessisammussii Public EmploymentService

4 vir Services to Employers Services to TVorkers 1. Matching job vacancy and worker (collection of 1Matching worker and job vacancy (collection data on current and anticipated job vacancies) . and processing of data on job applicants). 2. Consultation on labor problems and require- 2.Testing, occupational guidance, career counsel- ments internal to firms and establishments ing, and recruiting. (skill shortage and labor turnover, for example). 3. Consultation on labor market conditions and 3. Dissemination of job market information; pub- trends external to firms and establishments. lication of job vacancy data ; use of mass media bulletins. 4. Consultation on complying with labor laws and 4. Referrals to job-oriented training and retrain- standards ; requirements for participating in ing slots, including institutional training, ap - on-the-job training programs subsidized by prenticeship training, and on-the-job training; Government and similar programs. also referral to literacy training, general education, technical and professional. 5. Assistance in dealing with manpower problems 5. Administration of labor mobility and relocation connected with plant location, shut-downs, cut- programs, certification ofeligibility, payment backs, and expansion; assistance to farmers of allowances; arrange for and provide neces- with seasonal manpower requirements. sary supportive services tocommuters and migrants. to his decision and efforts to participate more effec- factory contributions to productive activities. In tively in the labor force. Such workers need ade- job seeking and hiring, the individual deeisions quate, reliable, and current information on job of workers and employers can be improved by ex- vacancies, including the essential characteristics tending to them more and better job market and requirements of existing job vacancies as well information. as the conditions under which jobs can beobtained However, this is only a part of the justification and held. for a viable and comprehensive job market infor- Similarly, employers who need workers as a mation system. Such a system is also indispensable result of expansion or regular turnover of their to an active labor market program which is needed work forces must have adequate, reliable, and cur- to assist disadvantaged workers, especially in rural rent information on the qualifications and require- areas. ments of job applicants in order to hire workers The present system of collecting and dissemi- for jobs in which they can make the most satin- nating job market information to employers and 29 job applicants is disjointed and fragmentary. Not persistent surplus of job vacancies should stimu- enough of the total number of job placementsare late increased recruitmentactivities, or job- effected through the public employment service. oriented training. A surplus of job applicants Apparently, most workers and employersare should signal intensified job developmentor job not aware of the worker-job matching service of- creation in the private sector through investment fered by public employment offices,or they feel incentives, or through public service employment. that superior information is available through In this way manpower problems could be foreseen other channels, such as private employment offices, and prevented. word-of-mouth,directlyfrom employers,or through mass communications media. Employers The Commission recommends- file only a small share of their job vacancies with the public employment offices, and they rejecta 6. That all employment service offices ac- high percentage of the job applicants whoare tively collect and maintain current lists of job actually referred by these offices. This means that vacancies in the public and private sectors of the public employment service penetration of the their immediate labor market areas. Federal, job market is small if not almost negligible inmany State, and local governments should file their labor,market areas despite the recent establish- vacancies with the employment service offices. ment of 150 Youth. Opportunity Centers to serve the needs of disadvantaged young workers. The Commission further recommends The placement penetration rate--jobs filled by the employment service as a percentage of the total 7. That all employment service offices ac- openingsis estimated at 16 percent for the tively collect and maintain current lists of United States. This compares with 40 percent for workers in their respective labor market areas West Germany, 33 percent for Sweden and the who are available for job placement. Special Netherlands, and 25 percent for Great Britain. Ex- efforts should be made to register the unem- perts are of the opinion that penetration rates of ployed, the underemployed, and disadvantaged no less than 25 to 30 percent would be needed to workers. enable an employment service to do an effective This kind of aggressive outreach can be placement job and to provide essential labormar- ex- pected to bring the employment service offices in ket information for an activemanpower program.2 Hence, the overall placement penetration rate of closer contact with problems of workers and employers. the employment service in the United States must Another aspect of the labor market information be greatly increased if we are to havean effective manpower program. program concerns the linkage of sources of information from the demand and the supply sides Undoubtedly, there are wide variations of place- of area, regional, and national labor markets and ment penetntion rates among local employment service offices. Most likely those with the lowest the effective use of information sources to ration- placement penetration rates are located in rural alize and coordinate manpower programs. The Commission finds that current data on em- areas. This results in great disparity and deficiency in the quality and range of manpower services ployment conditions in rural America are not available to rural workers. available as they are for metropolitan areas. The If all employment service offices extend their decennial census alone, on which most estimates of 'employment conditions in rural areas for in- outreach in the manner recommended below,an tervening periods are based, is not sufficient. The increased volume of job market informationcan dearth of information and data on rural areas in be generated for eacharea. Surpluses and shortages of job vacancies and job applicants can be which unemployment and underemployment are concentrated leads to neglect of these problems. ascertained for each area inany given period, a Greater disparity in the application of policies and programs to reduce these problems can result from 2 ALFRED L. GREEN. MANPOWER ANDTHE PUBLIC. EM- PLOYMENT SERVICE IN EUROPE, A STUDY Or PROGRAMS AND differences in the quality and scope of available in- OPERATIONS. December 1968, p. 19. formation for rural and urban areas. 80 37"-'"77-"I'`,7"7'

The Commission recommends parts of this nation should have access to knowledge about jobs and job applicants wherever they & That appropriate Government agencies exist., (the Bureau of Labor Statistics and the Bureau of the Census) in cooperation with the Employ- This Commission concurs with the recommenda- ment Service undertake regular surveys of tions of the National COM/11498i071, on Technology, labor market conditions in rural areas, com- Automation, and Economic Progress; 3 parable to those currently conducted for metro- With local centers feeding into regional centers politan areas and the nation as a whole. information relevant at that level, and these in turn feeding into a nationwide job and manpower bank, The recommended labor market survey data the service could provide detailed information on the should be combined with supplementary data manpower requirements of job vacancies and the per- sources to provide a clearpicture of the magni- sonal characteristics of job seekers. The technological knowledge is available for the equipment and the'costs tudes, dimensions, and trends of employment, un- are within reasons./ employment, and underemployment in rural areas. Analysis and use of labor market data from all The Commission recommends- sources should be an integral part of the manpower 10. That a computerized nationwide service planning and development process. for matching workers and jobs be established The Commission recommends and maintained as an integral part of the 'U.S. Employment Service system. .9. That the local public employment office(s) in each labor market area be required to de- Manpower Assessment Programs velop annual comprehensive plans for provid- Eased on extensive job market information, local ing maximum feasible employment and training employment service offices should occupy excellent opportunities for labor force participants in positions for counseling workers on the require- their respective areas. ments, working conditions, and salary scales of These compreher: ve manpower plans should be present and future jobs. Such important informa- based on current are, anticipated job vacancy data tion should be supplied, free,' to individual work- .and job applicants data in addition to other com- ers, to the public schools, and to organizations plementary sources of data. Modern electronic and concerned with education, training, and the devel- telecommunication equipment andtechniques opment of human resources. should be utilized, where feasible, to process, store, However, intelligent decisions regarding the oc- and transmit information on job applicants and cupation or profession that individuals wish to job vacancies that cannot be matched within areas follow are based on more than a knowledge of the to other areas where surplus job vacancies and present structure of opportunities and how they workers exist. are shifting over time; they are also predicated on. Recently, the Department of 'Labor in coopera- an assessment of individual achievements, per- tion with other government agencies initiated a sonal traits, aptitudes, and capabilities. Aspira- Cooperative Area Manpower Planning System tions that last for a lifetime are often formed at (CAMPS).It involves the development of annual early stages of childhood. Some are passing dreams manpower plans in all States and in some locali- but many harden into commitments and. occupa- ties in accordance with Federal guidelines issued tional attachments. For the poor, the development jointly by the participating Federal agencies. The of aspirations is too frequently delayed, distorted, plan helps to coordinate the programs of MDTA and 0E0, and other human resource programs. and frustrated by the conditions under which they Rapid extension of the CAMPS program to rural live. As the conditions that stifle aspirations of our areas would be a step in the direction of the Com- poor youths in rural America are alleviated, the mission's recommendations. employment service could perform a useful service .Local labor market areas comprise regions, and 'NATIONAL COMMISSION ON TECHNOLOGY, AUTOMATION regional labor markets comprise the national labor AND ECONOMIC PROGRESS. TECHNOLOGY' AND THE A.MICRiCAN market in which workers and employers in all MCIONOMIG Vol. 1, February 1966, p. 50. 81 by helping them to discover themselves in relation expected to provide all of the vocational guidance to present and future job opportunitie& and counseling services that are needed in rural The smaller communities' program is another America. However, they should be expected to pro- example of a possible approach to meeting the vide job-market-oriented information for counsel- needs of rural workers, employers, and areas for ing programs in schools and other local institutions comprehensive manpower service& This program working with young people. Moreover, they should utilizes mobile teams of interviewers, counselors, be prepared to offer professional vocational guid- and test administrators and is initiated ina com- ance and counseling services to current workers. munity at the request of local leader& The program helps individual residents of rural The Commission recommends- communities by providing them with the services counseling, testing, and placementofa regular 11. That a manpower assessment program be employment office. Each individual in the labor extended to workers and youths through the force has the opportunity to discuss his work plans local employment service offices. with a professionally trained employmentcoun- This program should include testing, counseling, selor. Applications and test resultsare turned over to the nearest local employment office for con- work samples, and other techniques needed toen- tinued service. able workers and youths to assess their capabilities The program also helps community development and to make free and intelligent occupational choices. organizations by making a comprehensive study Individual assessments and occupational choices of the manpower resources of thearea, including information on the potential skills of the work of persons in each local marketarea should be force. This information on potential skills is of recorded, aggregated, and cross-tabulated byage, particular interest to prospective employers and sex, etc. Analysis of these data in relation to present and future manpower requirements could be can also be used in developing vocational training programs. The program also assists development used to forecadt possible labor market imbalances. groups in making a detailed study of the other Appropriate steps can be taken to preventor resources in the area which can be used by the reduce them. community in planning for the expansion of job Job-oriented Training and Retraining opportunities. Programs After 3 to 4 months the teammoves on to another rural county. From 1959 to the end of 1964, For workers in rural America who experience 42 counties had received the services of this frequent or prolonged periods of unemployment program.' and underemployment, suitable training oppor- Again, the smaller communities'program is an tunities with jobs at the end of them are perhaps example of token effort in the right direction. the most meaningful and productive assistance However, the job of helping rural workers to catch that can be provided. Adequate training oppor- up and to participate effectively in the labor force tunities are necessary in order to enable many will never be accomplished except througha mas- workers to act on the information and advice ob- sive program extended to workers everywhere in tained through vocational guidance and job market this country on a regular basis. information program& An active vocational counseling and guidance There is absolutely no question about the desira- program is needed in every rural community to bility of providing adequate training opportuni- prevent much of the unemployment, underemploy- ties to workers, especially disadvantaged workers. ment, and misallocation of humanresources that Benefits to trainees and to society far exceed the we observe in rural America today. costs of offering training programs. For example, Local employment service offices shouldnot be one investigator conducted a study of 373 Connecti- cut workers who were involved in. job training courses. The purpose of the study was to weigh 4 U.S. DEPARTMENT OP LABOR, BUREAUOr EMPLOYMENT Srenarrr. miteliaza cromiatuarncs' PROGRAM. Entpioyment the benefits and the costs of retraining the unem- Security Review and Employment Service Review. ployed and to determine if retraining the unem- 82 ployed is a good investment for the individual and urban America, institutional and on-the-job workers, the government, and the economy.5 training under MDTA are only token operations. Among other findings the study revealed that : The total number of trainees approved in the (1) The average annual gross income of the MDTA program for the fiscal year 1967 is esti- workers who used the retraining was $500 greater mated at 250,000. Manpower training under the than their expected incomes in the absence of act is projected for 500,000 persons by 1970- retraining; 300,000 in the institutional program and 200,000 in (2) Over a 10-year period, however, the total the on-the-job training program. This will provide economic value to the average individual in the training for less than 1 percent of the estimated total sample was estimated at between $450 and labor force of 86 million workers by 1970.5 $850. In a decade, estimated benefits to individual The fragmentation of training programs is due trainees are reduced considerably by increased in- partly to the lack of assignment of responsibility come and social security taxes, smaller unemploy- to a. single authority for overall planning, coordi- ment benefits, and the extent that retrainees leave nation, and administration of these programs. the occupation for which they were trained. At the Federal level, responsibility for the ad- (3) Expected benefits per worker enrolled in ministration of job training programs is distrib- retraining were much higher for the government uted among several agencies. The bulk of the re- than for the individual. Expected benefits to the sponsibility for vocational education is assigned to government per workerdefined as increases in the Vocational Education Division of the Depart- tax revenues, decreases in unemployment transfer ment of Health, Education, and Welfare. Work payments, and the average present value of the experience programs under 'title V of the Econom- expected benefits of retraining for the economy ic Opportunity Act have been delegated to HEW were estimated atbetween $5,500 aad $8,000 for by OEO and are administered in the framework a 10-year period. of the welfare programs. 0E0 operates the Job (4) Retraining benefits were multiplied' still Corps program itself, but has delegated the Neigh- more in the total economy 'by virtue of making borhood Youth Corps (NYC) to the Department unskilled and semiskilled jobs available to other of Labor.' Within the Department of Labor MDTA workers who would otherwise be unemployed. The is administered by the Manpower Administration. net benefits to the total economy per worker over The Bureau of Employment Security, the Bureau the 10-year period. wereestimated as being be- of Apprenticeship Training (BAT), the Bureau tween $20,000 and $30,000. of Works programs, and the Office of ManpoWer Considerations of benefits in relation to costs of Policy, Evaluation, and Research (OMPER) are retraining yielded benefits worth 2.5 to 5 lilies the components of the Manpower Administration. costs to the previously employed worker.. Benefits These manpower and training programs have not to the government were 16 to 23 times the costs to been consolidated and integrated into one national the government, and benefits to the economy were comprehensive manpower program. Moreover, the 67 to 100 times the costs to the economy. need for coordinating the Department of Labor Despite the enactment of the Manpower De- training programs with those in HEW, OEO, the velopment and Training Act (MDTA) of 1962, Economic Development Administration, and the as amended, the organization of job-oriented train- other Federal agencies has not been satisfied. ing programs is scattered among several Federal At the State and local levels, job-oriented train- agencies. The job training system is disjointed, and ' ing (lofts are weaker andmore fragmented than there is little likelihood that a sufficient number of, they are at the Federal level. Thereare 50 or more training slots will be available inany location or departments of vocational education,or equiva- areas to meet the training needs of workers. lents, in 50 States, operating 50 or more vocational In comparison to the extensive training needs of education programs. Gross disparities in quality. unemployed and underemployed workers in rural. and scope of vocational education often exist from State to State, and from school district to school M. E. BONUS. A BENEFIT-COST ANALYSIS OF THE E00- NOMIC ENTECTIVENES$ OF RETRAINING THE UNEMPLOYED. CONGRESS OF THE UNITED STATES, JOINT ECONOMIC COM- Yale Economic Essays, vol. 4 (2), Fall 1964; New Haven : MITTEE. FEDERAL PROGRAMS FOE THE DEVELOPMENT OF HUMAN Yale University Press, 1964. RESOURCES.Vol. 1. December 1966, p. 374.

88 district within States. Generally, the training re job-training opportunities fall far short of meet- ceived by young people in vocational education ing the total training needs of rural workers. courses is not geared to preparation for jobs or to This shortage of job opportunties in rural areas, requirements of the job market, especially on farms, has precipitated a massive ex- In far too many cases, job-oriented training, odus of manpower from rural to urban areas that and literacy training to support it, are not avail- dates back at least to 1920. Gross migration probable at all at the local level. Frequently, no local ably was two to three times at large as net migra- coordinating agency exists, or it does not act af- tion during this period.T During the 1950's net firmatively to mobilize and organize training re- migration from farms was over 1 million per year sources in local communities to meet the training Since 1960 it has declined somewhat to more than needs of adult workers. The relatively few MDTA 850,000 persons per year. However, the slight de- and BAT training projects and activities ir this cline in farm to nonfarm net migration is due kind of setting, so prevalent in rural areas, usually largely to the reduced number of farm residents screen molly trainable workers from the top, leav- rather than to a reduction in the number of mi- ing those most in need. of training untouched, and grants relative to the number of farm residents.8 widening the gap between relatively advantaged and disadvantaged workers. The Commission recommends--

The C omintission recommends-- 13. That adequate job training opportunities be provided for workers to maintain and up- 12. That all existing manpower development, grade their skills and to qualify for better joh& training, and retraining programs be organized and administered as a single comprehensive job Institutional and on-the-job training programs training program. Training, activities under through MDTA plus apprenticeship training pro the Manpower Development and Training Act, grain's should be coordinated with vocational edu- the Bureau of Apprenticeship and Training sy cation in rural communities to meet the total tern, the Bureau of Works programs, 0E0 training needs of rural workers. training programs, and similar: programs Many rural workers and adults, especially in should be incorporated into the cimprehensive the South, need literacy training and other types training program and closely coordinated .with of training that do not relate to job skills as such the functions of the Vocational Education Divi- Nevertheless, such training is fundamental tooc- sion of the Department of Health, Education, cupational preparation, to job holding, and to par- and Welfare. ticipation in civic and community life. Training activities at the State and local levels Manpower Adjustment Programs should be coordin:Aed and properly integrated into the comprehensive manpower program. Sufficien tjo bvacancies do not exist in some labor In the modern dynamic economy that exists in market areas to employ all labor force participants the United States today, job skills become obsolete residing in or near these areas. at a fast rate. The skills required to perform most Through guaranteed employment as recommended in chapter 3, additional jobs can be de- jobs change so fast that workers cannot keep up veloped and created, but chronic imemployment with them through job performance alone. Some- and underemployment may still exist in some areas times jobs and the skills needed to perform them after such possibilities have been exhausted. At the disappear altogether. New skills must be acquired same time, labor shortagesrmore job vacancies if some workers are to continue to work or to par- than job applicantsmay exist in other areas. ticipate effectively in the labor force. Hence, there Such labor market imbalancas can be reduced, and is a great need for workers to' continue training in some cases eliminated, by providing minimum while holding jobs, or to return to training full, time. Many firms, labor unions, and other organi- O. E. BISHOP. D/MENSIONS OF THE FARM LABOR PROBLEM. zations have, established programs to providepeo- In FARM LABOR IN THE UNITED STATES, C. E. Bishop, ed., Columbia University Press, New York': -1967, p. 5. ple with an opportunity to improve their skills in U.S. Dpartinent of Agriculture; ,Economic ne,ieardi order to qualify for' better jobs. However, current Service. 34

;al eAC#0:`,' f"-7-17W,7

assistance to workers who may wish to move from Major obstacles to relocation include lack of areas where jobs for them cannot be found, de- suitable inexpensive housing, prospect of financial veloped, or created, to other areas where jobs do loss in selling present lioine, number of children in exist. school and proximity off the move to the beginning In a dynamic economy, labor market imbalances or close of the school year, lack of information, and often shift through time from area to area In false hopes of things getting better where they are. order to remain employed or to obtain gainful employment in their chosen occupations some workers The Comortissioareemmend8 may find it necessary to move from labor surplus areas to labor shortage areas. Sometimes jobs 14. That a relocation program be established which cannot be found for unemployed workers in in the Department of Labor and that mobility their area of residence are plentiful in other parts ti and relocation assistance be provided for dis- of the region, State, or county. Without minimal advantaged workers who cannot find gainful assistance some workers are not able to relocate employment where they: now live, but for whom themselves and their families in order to accept jobs and training opportunities can be located jobs, or to undertake job training. Since 1963, the U.S. Department of Labor has in other labor market areas.f conducted demonstration mobility projects under A worker is deemed to be disadvantaged, from the provisions of the Manpower Development and. Training Act. These projects have been conducted the standpoint of this recommendation, if he or his under a variety of conditions. The Public Employ- primary family is poor the prevailing poverty ment Service has had about 2 years' experience criteria. A poor worker and his family should be with pilotprojects,to provide employment oppor- eligible for necessary assistance, including finan- tunities by, relocating workers. cial payment and supportive services, if he desires Through September 1965, over 14,000 workers to move and if suitable job opportunities or train- were interviewed in 16 mobility projectsin 14 ing opportunities cannot be found in his home States. Of the 6,216 found initially eligible for re- area. .location assistance, 2,086 indicated that they were not interested in relocating. Of the remaining The anzeminion reCW1471,431748-- workers, 1,336 were actually relocated to f jobs in other areas, 15. That for the purpose of administration, Certain factors have been identified as being es- coordination, and certification of eligibility, sential to a successful relocation program. First, the local public employment offices should per- workers must possess training, skills, and talents form key roles in the implementation of the required by their new jobs. It was also found that relocation program.f workers must be imotivated by a sense of personal or professional achievement to be gained by Expanded and improved, as suggested in other relocating. parts of this report, the public employment offices For unskilled poverty-stricken workers, finan- should integrate mobility and relocation assistance cial allowances have proved invaluable in assisting into the area manpowerplanning`and development them to relocate successfully. For certain groups, program. Relocation payments should include : such as relatively disadvantaged workers moving a. Travel and living allowance for persons seek- from rural areas to urban areas, supportive services ing job interviews for jobs recommended by the take on more importance than financial assistance. Movements from rural areas to small towns and public employment service. cities require fewer supportive services than move- b. Relocation allc wane for moving households ments from rural areas to large cities. Provisions and families of workers who successfully obtain for supportive departing and settling-in services permanent jobs certified, by the public employment should be apart of any relocation program. service. The relocation.allowance should include rt .* ;DEPARTMENT or LABOR, BUREAU OF EMPLOYMENT SECURITY. MOVING WORKERS TO WHERE THE JOBS ARE. Em- tSee comment by Vivian W. Henderson and James O.

. pioYmeiit gerViCe Reilew; JUne 1967, pp. 3949. Gibson at end of this chapter.

27 640a 0-67--4 is payments for moving expense,s and minimally re- Special Manpower Problems quired settling-in expenses. c. Travel and living allowance, relocation allow- A comprehensive manpower pragrom must be ance and assistance for undergoing training recom- capable of meeting special and unique problems of mended by the employment service when training workers and labor market areas. Groups that need is located outside workers'areas of residence. special manpower services include: physically and d. Supportive service for relocated workers; mentally handicapped workers, older workers, that is, assistance in straightening out affairs in old youths, Negro farmworkers in the Southeast, Mex- community before departure, if requested; infor- ican-American resident workers in the Southwest, mation and counseling on living conditions andre- Mexicans who cross the border as commuter work- quirements in new communities; referrals to social ers or who enter the United States extra - legally; agencies ; resources and facilities in new commu- and migrant workers. nities; and other newcomer services. Stipulation of the kind and amounts of special The commission recommendsa relocation pro- manpower services required to reduce substantially gram for disadvantaged workers only as a last the employment problems among these groups is resort. All efforts to find, develop, and create suit- beyond the scope of this report. Nevertheless, the able employment opportunities for workers in manpower and employment problems inherent in their home areas should be completely exhausted the Mexican-American border situationcan be before they are considered for relocation assist- cited as an illustration of the severity and thecom- anc& Such assistance should be provided in a plexity of some of these problems and the need to manner that will enable workers to choose freely tailor services to meet them. where they want to; live and work. Also, relocation Several intricate factors are involved in the is considered as one of the possibleways by which Mexican-American border situation in the South- workers may adjust to changing labor market west. Wages for farmwork along the borderare conditions. extremely low relative to the wage structure in the Necessary safeguards should be devised topre- United States, but high relative to prevailing clude possible misuse of this relocationprogram. wages on the Mexican side of the border. The Mex- In few cases should it be necessary to provide ico-United States wage differential in formwork relocation assistance to workers in moving from and nonfarmwork is reflected in differences in one State to another. Fewer moves from one region levels and standards of living. Mexican workers to another are expected with the assistance of this are attracted into the United States, increasing the relocation program. Thus, the, vast majority of supply of labor and in some cases reducing the the moves would be intracounty and intercounty. work and wages for dome.stic workers. The influx within States. of Mexican workers and thair families under these conditions create severe problems in international Rural workers especially must often makesev- relations, labor management relations, racialre- eral kinds of labor market adjustments simultane- lations, and relations between ously. As they move to places where jobs and newcomers and Mexican-American resident& This is alsoa source training opportunities are located, theymay also of some of the poverty; in the United States,not wish to change occupation& Since skills, work only among the newcomers themselves butamong habits, and working conditionsare often quite dif- longer residents whose conditionsare affected ad- ferent among occupations, the transitioncan be versely by increased competition of Mexican enormously difficult, if not insurmountable, with- immigrants. out some assistance. Workers from Mexicocame into the United Many workers and their families who change States in large numbers after World Wars I and. their residence should be assisted in adjusting to IL Most came to seek fitrmWoric in the Southwest. conditions in, new communities. Finding adequate Some came into this country legallyas contract housing and developing a feeling of belonging in laborers. Others entered illegallythe "wetbacks." newcommunitiesare some of the ingredients of During the early 1950's estimates of wetbacks successful relocation. A variety of social services crossing the border ranged as highas 100,000 a may be needed to minimize or to.prevent problems month. Most of the wetbacks returned to Mexico Militia in this 'kind of transition. of their own volition, but many thousandswere, deported. As illegal aliens in this country, they Although substantial progress has been made were totally without legal rights. None of the in recent years in regulating the supply of foreign usual protections for -workers or citizens applied workers in this country; more vigorous regulation and they were at the mercy of employers. is warranted in view of the inadequate attention Mexicans known as "green card holders" are to these problems in the past, a rapidly growing legal residents of Mexico, entitled to commute to domestic labor force, and declining number of the United States for work Known as braceros, jobs through mechaniZation of farmwork. The they work primarily during periods of peak de- reasonable expectations of domestic hired farm- mand for farmwork. workers for accelerated increases in wages, job This practice was regulated under Public Law security, and better working conditions cannot be 78 which was enacted in 1951 as a temporary Ko- realized unless the supply of workersforeign and rean War emergency measure. A series of tem- domesticis balanced with available jobs. porary extensions carried the program throrign 1964 when Public Law 78 was terminated. Since The Commission recommends-- 1964 the Secretary of Labor has admitted some 16. More vigorous and careful enforcement temporary contract workers in reduced numbers, of laws and. regulations governing the recruit- under the authority of the Immigration and Na- ment and employment of foreign workers. tionality Act (P.L. 414). The us_ e of foreign workers on temporary farm More specifically, this means that (1) the entry jobs has declined sharply in recent years. In 1965 of foreign nationals into this country illegally California was the only State in which braceros should be stopped completely; (2) commuters were employed on farms in significant numbers. from foreign countries, should be further regUlated. (See table 2.) Those in the labor structure whose wages are consistent with the laws should be encouraged to TABLE 2.---Annital peak employment of foreign establish residence in the United States. For those agridultural workers,' by selected States, 1959 2 whose wages have a depressing effect on the econ- and 1964-65 (Thousands) omy steps should be taken to restrict. and finally

State 3 1959 1964 19f5 Nation. prohibit their entry until such a time that their ality 4 presence does not create unfair competition; (8) in no case should foreign workers be employed as Total for U.S.' 308. 292..823.7 strikebreakers, or to jeopardize the job security Arizona 16. 3 7.2____M of domestic workers, or to depress domestic Wage Arkansas 39 0 C 0 M California 83, 663.917. 2M levels; and (4) special, attention should be focused Colorado 5. 7 6.0 _ M on the welfare of migrant workers along tui border Florida 10. 314. 0 8. 5B in order to maintain health, housing, education; M.aine 8. 1 7'.0 & 8C and labor standards prevailing throughout the Michigan., 11.012. 8 M country: New Mexico 19. 5 1. 3 _ _ _ _ M Texas 136. 815. 6 _ _ _ _ M The implementation of this reConiMendation will assure better treatment, adequate jobi,ind income Foreign nationals contracted for temporary formwork for foreign workers who enter this country. This will enhance their chances of becoming prosperous in the ix.S. , . 3 Year of all+time peak employment of foreign workers. and productive citizens rather than joining the 3 Only States With eniPidSTMent of 5,000 or more in 1959 ranks of the poor and disadvantaged: 'Moreover, are shown separately. further diSorganizttion of labor Markets will be 4 Only the Most 'important national group is shown: Mmexican B.British West Indian; C-Canadian. prevented and.basi,,, requirements fol. effective IvRefera to that time of year when agricultural employ- plication of a Comprehensive maniteiki program ment of foreign nationals was at its peak for the U.S. as a will be strengenened. The foreign' workers, dorees- whole.' tic workers, employers, and the eciineniST aS a whole . Diti Florida refer to the crop season rather than will be beneficiaries. the:calendar year.-' This is not. to suggest, however, that the migrant .Department of Labor Report of.Man, power' Requirements, Resources,. Utilization, and. Plan- &I'M' labor prbblem, ororr the -entire "fatiit` labor Mareh 1966, P. 132. problem, for example, can be successfully ;TT?

and solved within the framework of migrant labor recommended in thischapter;.and (c) exten- on the farms, or even in the rural areas. The Com- sion of manpower services to, the poor and the mission is of the opinion that feasible solutions: to nonpoor according to their individual.needs these problems extend to various parts of the total and aspirations. economyfarm and nonfarm, rural and urban. Since most manpower problems with which the A Compreheneive and Active Approach Commission is concerned are multifaceted and in- to Manpower Problems terrelated, program recommendations to meet them must be balanced, comprehensive, and active. The general situation prevailing in formwork A manpower program geared exclusively to the has been described by one noted authority thus: " matching of jobs and workersin the economy may Beeinse formwork has practically no obstruction to be as Unbalanced as one that is geared exclusively entry, poor people who have limited employment alterna- to tailOring jobs to suit the talents, interests, and tives are found here in larg6 concentrations. But most aspirations of workers. Hence, the Commission of any current farmworker population Is temporary and seeks to foster the development of human resources transitional. Therefore, the therapy of social policy is properly not to be directed toward them as "migrants" in a manner that will also serve the manpower or as formworkers, Their needs are those of all .. under- needs of areas, regions, and this Nation. An ap- privileged peoplesound mental and physical health, edu- propriate balance between these two sets of con- cation,' training, and protection against discrimination. siderations is the desired end. They are therefore a Category of all of the potential A piecemeal approach to problems of human clientele of the Nation's antipoverty-equal opportunity prograM. development and manpower utilization is not only The farm employment economy into which poor and ineffective; it can be damaging and can result in t. ditiadvantaged workers enter does not offer much oppor- waste of scarce resources. It was pointed out earlier tunity for self-improvement. It is a scene of chaotic and that effective vocational guidance and vocational uncertain, employment relations ; it lacks the regimen and education programs are quite dependent upon job discipline of a competitive market; It lacks the structure of a labor Market, partly because farmworkers are ex- market information programs..0ther interdepend- cluded from virtually all lebor legislation. Competition encies strongly suggest that a piecemeal approach hastraditionally,been among* 'workers, not among em - to manpower problems in rural America is inef- ploYers. VOth unrestricted entry and work that is divisible, fective, if not useless. , 200 person, may be taken ;on to share a harveit that could Manpower problems in rural areas and poverty be handled by 50. conditions that are connected with them are long This Is an area of employment that could be rationalized,. IA, given more of tie structure and performance char- standing. Social, economic, and technological acteristics that fountt In labor markets. Doing so changes are tending to intensify these problems. Would have a two-way benefit :(a) toward the welfare They must be met head on with Massive, active of workers who would have more certain, longer, and higher paying employment; (b) toward more efficient use programs at levels that will reverse hardening and of manpower the national interest: However, the de- accelerating trends. Weak and passive approaches clining total employment of persons on farms will be to manpower problems with which the Commis- accelerated and total welfare will be improved only If sion is concerned in this report would be tanta- those displaced from agriculture are effectively absorbed mount to failure and defeat. elsewhere.

"The COM/141882071 recommends-- Memorandum of Reservation by Vivian W.

, . Henderson and James 0. Gibson Con- 17. A comprehensive approach to meeting the ,cerning Recommendations 14 and 15 1PallPower needs of workers in. rural America, These recommendations are -designed to ,bring embracing; (a). Inclusion of ,farm labor with improvement in labor market adjustment on the rpnfann labor .and rural workers with, urban workers; (b) appropriate combinations of the part of workers moving from, rural to other arias. various components of the manpowerprogram We concur that mobility assistance for workers has validity for this objective. National mikra- tion policy is needed to bring order and structure VAESEEr. itibEZE. ;11. HIRED: FARM -WOE IN THE WEST. (US- 0) Et*Ort. progir0 for the. National Advisory Com- taniovement of poor people pursuingnew and bet- gaeitn4 .on It .Poverty.) ter opportunities. However, the reCOnmiendationa qa.

, AA/ .7.! ' .9,,re.4 :tr..:,,,r,±477-0 1,1

as adopted by the Commission emphasizefacilitat- commodity distribution prognuns public officials Mg the departure of rural migrants. We have res- in some counties are systematically starving Ne- ervations on this point. groes into moving to other areas, Atlanta Con- Providing jobs and opportunities for rural peo- fditution, September 4, 1967.) ple where they are is a thread that winds through Much of the migration that takes place involves the entire report. It appears self-defeating to sug- movement from remote rural areas to smaller gest this cannot be done and therefore provision towns and cities. Often such places are stop-ofi should be made to subsidize, even as a last resort, points for rural people in transit. Emphasis movement of the rural poor to other places. These should be placed on providing halfway commu- subsidies should go toward creating jobs and op- nities, multi-purpose renters and reception centers portunities so people can exercise options in their in and near smaller towns and cities as well a local areas, metropolitan areas. With proper programming Moreover, expansion of voter registration and and provision of supportive services, migrants increased political participation, parti.cularly in adjust to labor markets rural areas of the South where Negroes make up may find it easier to substantial parts of the population, threaten exist- in smaller towns and cities and the flow to large ing power relationship and could be motivating urban ghettos may be abated. Regardless of factors for mobility assistance programs to be used this point, however, emphasis in mobility assist- as devices to de-populate those areas. (Ithis been ance programs should be placed onreceiving mi- noted that by refusing to adopt food stamp and grants and their adjustment in new environments.

State or territory

Alabama 43 32 Alaska 9 3 Arisona 42 15 Arkansas 34 27 California - 186 50

Colorado - 34 32 1 1 Connecticut 31 22 1, 2 1 2: Delaware- 4 3 1 District of Columbia 7 1 5 1 :Florida 76 1 33 20 1 ____ 6

Georgia 39 33 2 1 1 2 GUAM 1 1 1 Hawaii_ - A- 8 4 1 1 1 Idaho 26 21 1 3 1 Illinois 74 41 4 9 9 1 10

Indiana 38 24 6 4 1 3 '''. 1"...... 1". Iowa 48 33 11 2 - 1 1 Kansas 33 20 10 1 ,. 2 Kentucky 31 23 1 4 1. 2,------,--,., Louisiana 27 18 1 3 2 3 Maine 16 14 1 1 .. Maryland _ 25 16 2 2 2 '2...ia.m... Massachusetts 56 35 Michigan 78 3 See footnote at end of table. ti

Appendix--Continued

TABLELocal employment security offices, by States and territories and by functions, February 1967Con.

VI, ES, andEgrnand VI and Otteutr. Total farm State or territory (1) (2) (3) (4) (5) (6) (7) (8)

Minnesota 39 31

Mississippi 54 36 16 1 Missouri 57 27 1 19 8 2 Inn no an aa. on a.. .. Montana 25 23 1 1 Nebraska 22 18 2 1 1

Nevada 11 7 1 1 nna MIinn le

New Hampshiror no 1151,.. ain-. eon ennAO dim 11 10 1 . New Jersey 54 24 12 6 2 4 2-.4... New Me2,1co 23 20 1 1 1...... New York 166 70 9 13 36 26 12 North Carolina 56 44 1 10 1

North Dakota 17 9 4 3 1 Ohio 97 61 10 5 10 2 9 Oklahoma 34 27 3 2 2 Oregon 30 25 1 2 1 1

Pennsylvania 121 80 3 . 18 5 1 11

Puerto Rico 13 9 3 1 Rhode Island 15 8 1 4 1 .1 South Carolina 34 27 2 2 3 South Dakota 17 15 1 1 Tennessee 46 27 1 5 4 1 4 1 3

Texas. 116 60 17 5 7 5 16

Utah 19 11 2 1 3 Ow 40. mi. 1 1 pn, Vermont 14 10 2 1 1 Virginia 39 26 3 2 Virgin Islands .5 2 3

Washington 37 '26 5 1 2 3 West Virginia 28 24 1 . 3 Wisconsin 37 21 5 3 6 1 air onno 1 Wyoming. 16 15. . 1 =len /1111,11121151.

Total 2,219 1,192 221 198 188 174 159. 73 , 14

1 hicluding four offices with employment service and (2) Employment Services and Farm Placement. youth opportunity center functions; four offices with (3) Unemployment Insurance only unemployment insurance,employment service,farm (4) Employment Service only placement, and youth opportunity center functions; (5) Unemployment Insurance and Employment Service. three offices with unemployment insurance and farm (6) Youth Opportunity Center only. placement functions; two offices with farm placement (7) Farm Placement only. and youth opportunity functions; and one office with Sounov: U.S. Department of Labor, Manpower Ad unemployment insurance, employment service and youth ministration, 'Bureau of Employment Security, Directory opportunity center functions. of Local Employment, Security Offices, February 1967. (1) Unemployment Insurance, Employment Service, Farm Placement.

! -7

Chapter 5

EducationHelping People To Help Themselves There were more than 700,000 adults in rural completing high school is much, lower than for America in 1960 who had, never enrolled in school. urban youth. In 1960, about twice as high a pro- About 3.1 million had less than 5 years of schooling portion of urban as rural youth were enrolled in and are classified as functional illiterates. More college (4, p. 117). than 19 million had not completed high school Those who enroll in college have a hard time competing with students from urban schools. A This pool of adults with low levels of educa- study of students entering Iowa State University, tional achievement is being fed by a stream of rural for example, from urban and rural backgrounds youth. More than 2.3 million rural youth aged 14 showed that rural students scored lower on through 24 dropped out of school before grad- entrance examinations and more often had dea- uating in 1960. About 8.7 percent of themsome biencie,s in preparation that had to be made up (5). 199,000completed less than 5 years of schooling The ingredients of any educational system in- (e). clude teachers, buildings, facilities, curriculum, Status of Rural Education and programs. Their quality in rural schools, compared to urban schools, is low. Rural adults and youth are the product of an Because of low teacher salaries, rural schools are educational system that has historically short- not able to attract and hold the better teachers. changed rural people. The extent to which rural Small communities have fewer high school people have been denied equality of educational teachers with five or, more years of college and opportunity is evident from both the products of more elementary teacherswithout a college the educational system and the resources that go diploma. The percentage of rural teachers not into the system. On both counts, the quality of properly certified is about twice as high as for rural education ranks low. urban teachers (6, p. 7). Low levels of educational achievement of rural Failure of rural schools to attract and hold good adults give some indication of the poor quality of teachers is also related to the poor facilities in education in the recent and distant past. In 1960, many rural schools. In spite ofconsiderable con- the average years of schooling for the urban. pop- solidation of school units, rural schools in general ulation 25 years of age and over in the United equipped than urban States was 11.1. This compares with 9.5 years for are smaller and less well rural nonfarm and 8.8 years for rural farm people. schools. There are still about 10,000 one-room Only 11 percent of the rural adult population had schools in this countrymostly in rural America any college education compared with 19 percent of (6, p. 5).Vast improvements have been made, but the urban population (8, p. 00). some of these small schoolsstill have outdoor While rural youth are getting a better education privies and are without running water (7, p. ES), than their parents, the level of educational achievb- Those facilities that are generally associated ment is still lower than for urban youth. Twenty- with scholastic achievement are notably short in eight percent of rural nonfarm youth and 23 per- rural schools. A recent study, sponsored by th.e cent of rural farm youth aged 14 to 24 in 1960 Office of Education in response to the Civil Rights dropped out before graduating. This compares Act of 1964, and referred to as the Coleman report with 21 percent for urban, youth (2). (8)indicated, for example, that fewerrural Not only do rural students drop out sooner, but schools have science and language laboratories. the percentage of those who go to college after The report showed discrepancies in many other physical facilities generally associated with a good 1 Iteferences, indicated by italic numbers in parentheses, arelisted at the end of this chapter. school, by today's standards.

16,7,--;

, P , nr:

Rural Schools and Poor People learn. There are many studies and demonstrations that disprove these theories. There are many public Bringing the quality of rural schooling up to the school systems that can be looked to as examples level of urban areas would greatly improve the of what can be done. educational opportunities of the rural poor. This Two good examples of schools that have &M- alone, however, will not solve the educational prob- oped effective programs are discussed in a repo lems of economically deprived students. An even of the. Task Force on Economic Growth and Op- larger disparity in quality of schooling exists with- portunity (97p,183). in rural areas than between viral and urban areas, The failure of the rural school system to serve Some of the most modern schools in the country adequately the special needs of disadvantaged stu- exist in rural areas, They are in sharp contrast to dents is associated with many factors. A big one is the one- and two-room schools that are scattered lack of knowledge on how to deal with their unique across the landscape. The "poor schools" most often problem& However, many schools need freedom areassociatedwith poor people and poor from local pressure and support from outside the communities. community as much as they need new technicians. The more fundamental problem with respect to the education of the rural poor is the failure of Federal Programs Have Been Inadequate even the better schools to meet their unique educational needs. It was concluded in the Coleman re- While the educational system has not met the needs of the rural poor, neither have Federal pro- port that ".. whatever may be the combination of nonschool factorspoverty,' community atti- grams to correct the situation been adequate.Too tudes, low educational level of parentswhich put often the attempt has been to fit students into the minority children at a disadvantage in verbal and existing school system. Many of the programs have nonverbal skills when they enter the first grade, the done little to develop the system so that it isfrbetter fact is the schools have not overcome it." It was able to cope with the variance that exists among found that the gap in achievement scores between children from differentsocial and economic minority students and white students actually backgrounds. widened as the grade level increased. The Federal Government cannot hope to 041 A very significant finding of the Coleman study with the problems of disadvantaged student is that factors associated with the individual stu- through programs that leave the basic educational dent were more important in explaining differ- system unchanged. The vast array of FalleOlpro- ences in educational achievement than factors grams that are in operation involves onlyserp.al associated with the schools. For example, all of proportion of the large number of childrW-Vik0 the "school factors" combined, such as the training need special attention, These programscamlot 49Pe of teachers and quality of facilities, were not as to compensate for the literally hundreds and t xou- important in explaining differences in achievement sands of young people being rejected yearly ytiu scores as the student's attitude regarding the public schools as they are now operated. amount of control one has over his or her destiny. Some of the programs, it is true, represent at- p Students, regardless of race, who had a strong con- tempts to improve the basic educational system. viction that they could control their future The Elementary and Secondary Education acrid achieved at a higher rate than those who did not. the Teacher Corps should make an impact oii be The importance of this finding is illustrated bythe structure of the school system; Betailse `then fact that the variability among individual pupils grams are funded on a year-t0-year basis, I* within the 'same school was about four times and depend on projects developed by local soof treater than the variability among pupils between districts it is difficult to tie them into the petina- schools. nent, continuing school piogram. '"" The big-chaltange facing the educational system There is much to be learned about educa is to develop the capacity of schools to cope with sfudents who are socially and econoinieally fite- differenceS among students from varying social and prived. The school system needs help with itstoc, tro, nomic backgrounds. Too many people associated The Commission favors the development Offro- with rural schools view students from deprived grams to test and demonstrate newteohniques. .homes and communities as unwilling or unable to However, more attention should be given, to defin-

. '7477.7*".7 ;177 77:17777,

ing the objectives of these programs as they relate with the dearth of impt.essions and lack of 'visible both to the individual and to the school system. alternatives in the rural community (13). The Programs that move beyond the testing-demonstra. educational system must help make up for these tion stage and become operational should relate environmental deficiencies. closely to each other and to the normal operations Many aspects of rural education need attention. of the school system. However, the Commiwion recognizes that prior- Programs that prove effective cannot continue ities must be set. First, consideration must be to be justified on the basis of their research value. given to meeting the educational needs of children At this point, they must be extended to the total from low income families. Children. must not be population with sufficient safeguards to preserve relegated to the ranks of poverty along with their their quality. To continue to operate effective edu- parents because of inadequate education. cational programs on a piecemeal basis, available Attention must also be given to those youths fti to a few while the masses are denied, represents and adults who for some reason dropped out of the grossest form of discrimation. the school system before getting sufficient knowledge and skills to function in the type of rural ReconmiHendations environment that now exists. They must be re- claimed and brought back into the system or pro- The relevance of education to rural poverty is vided with informal education that will allow obvious. A person without a good education sim- them to make adjustments to their particular ply cannot cope: with the complexities of life situation. around him. The unedUctited become the victims Recommendations that follow begin with early of progress rather than its beneficiaries. Its spe- childhood education and extend to the problems cific rele-eance to poverty is embodied in a state- of adult education. They will not solve all of ment included /in the Report of the President's the problems associated with rural education. Commiesion on National 'Goals, "education serves However, the Commission feels they will go a all of our parPosesliberty, 'justice. and all other long way towards helping rural people to help aimsbut the one it serves most directly is equality themselves. of opportunity" (10). Editcation in the context, of rural poverty must Elementary and Secondary Schooling bi'recognizedas aninvestment in huinan capital an investment that pays great dividends to the There are many factors associated wiA-the suc- individual and society. Schultz estimated that the cess or failure of theelementary and secondary schools to educate children from disadvanti return iii, the form of higher earnings to individ- ualSon investments in education in the late 1950's homes. Some of the most crucial are discusied wasaboil 46 'Percent for elementary schooling, 12 inthissection.Recoinmendations are made perceiit 01.4yearsof high school, and 11 percent accordingly. for 4 years Of college (11, table 17) EARLY CHatotooL. ErmrcAnox.The bask The high returns to society for investments in learning which has taken place by the time a child education are indieuted in a study by Denison." is 5 or 6 years of age is likely to influents all later This StudY attributes 48 percent of the growth in learning. A critical factor relating to educating real national income in the United States between the rural poor is that many rural childreiventer 1929 'and 1957 to increased education of the labor the first grade having never been to town. Some force, and 20 percent to the general advance in do not know the difference/between a knife and- a kno*ledge (12, Wok $2). fork or. an apple and an, orange. Education is vitally important to youth in rural Though these are extreme cases, it is generally communities regardless' of their economic status. true that children from poor families get little By'itkv very nature, the typical rural community help at home in learning to read or writeor speak, offers few options in terms of either employment .do not really know what parental stiraulation is, or social activities. The paucity of alternatives af- rarely find their parents interested in how well fects' all,- that people do,* think, and plan for. they do (1.4.). Sttidies have concluded that a low level of occupa- The child in a middle-class home, in contrast, is tional aspirations among rural youth is associated given a great deal of instruction about the world

PART.17, 77rjr77;

around him. Be learns to use language and fix as- The major problem with Operation Headstart pects of the world in his memoryand to think and many other preschool programs, other than about the similarities, differences, and relation- the limited enrollment, is that they operate in large ships. Parental instruction is individual andrelat- part outside of the mainstream of the educational ed to the experiences, actions, and questions ofthe system. They enroll young children in one of the ehild. Parents of middle-dass homes make greater best programs available from the standpoint of efforts to motivate the child, to reward him and to teachers and facilities. When they, leave these pro- reinforce desired responses (14). grams, however, they go into an elementary school The only effective means of coping with.the system that does not provide for continuous devel- educational needs of 'early childhood is to supple- opment. In many rural areas, they go from the ment the educational capacities, ofthe home highly progressive learning, environment of a through formalized programs. Numerous studies Headstart program to one that is traditional and indicate that intervention to counteract thesead- restricted in terms of the development of the in- verse environmentalconditions can be effective. dividual child. 00- However, those who design programs to over- The C ommission recommends-- come educationaldeficiencies that result from 1. That every child beginning at age'3 have poverty need to remember thatwhile a family an opportunity to participate in a 'good pre- may be poor,the parents usually impart certain school program and that wherever possible pre- desirable and invaluable traits to their children. school programs be operated by or in closi Children from poverty homes generally are warm cooperation with the school system that will and friendly with a well-developed sense of humor. have continuing, responsibility for .the educa- They are generally more mature for their age, and tion of the children, Preschool programs more have greatreceptivity to therapeutic tech- should involve a normal distribution of chil- niques. Contrary tc the thinking of many, parents dren from differentsocial and .economic o disadvantaged children.generally want their environments. children to get a good education. This came through -clearly in the Commission's hearings. It is very important to make preschool programs Ildwever, they place 'little value on education for part of a continuous school system. This does not t14 sake of education. They see it as a means of mean, however, that the programs have to be ad- getting a good job and preparing one to get along ministered directly by the regular school system. in today's world (15). It is also important to enroll a higher proportion Children from homes with adequate incomes of children from middle-class homes. Results of have been attending preschool programs for the Coleman study showed that mixing children years. Private nursery andkindergarten pro- from different backgrounds in educationalpro- grams, however, are too expensive forlow income grams is one of the most important factors OSSOC1- rural families. States in 'the South, in particular, ated with educational achievement (8). where low income rural families are concentrated, Parents also should be involved in the plan- do not provide public kindergartens. ning and conduct of preschool programs. In fact, The Headstart program has attempted in re- educational programs for parents, should beeon- cent years to cope with this early, childhood educa- ducted simultaneously with programs for children- tion. problem. However, only 210,000 children were A big problem in educating children from deprived enrolled in 1966 in the full-year program. There homes is the lack of continuity of educational ex- are, about 2.2 million children in the age group 3 perien.ces in the home and the school (16). to. 5 from imomes with extremely low incomes.: It Experience with Ileadstart and other preschool is apparent that this pr gram has passed the test- programs indicates that it is not *mattes: thee ing And demonstration phase. There is no excuse students special educational experiences, before for not extending programs of this type to the starting school. Individualized assistance has to be total population. continued on into the elementary school system by

...1 6.14MNIMMIN11.114 . . teachers who have been trained to deal with the *Data supplied by OMee of Beonontie Opportunity, 1967. needs of these children.

44 The Commission further ree'onmends- that they cannot compete with urban areas for 2. That every elementary school system have good teachers. access on a continuing basis to specialists in the The COMMAIgOtt recommends- early childhood education of socially andeco- nomically disadvantaged children. 3. That Federal funds be appropriated to These specialists should havea thorough under- enable the States to raise salaries of teachers standing of the latest techniques of early childhood in rural schools so that they may be competi- education relating to socially and economically tive with salaries of the better urban schools. deprived children. The specialists should work In this program for supplementing teacher sal- with classroom teachers and school officials in developing programs for students who need help aries, it will be essential to stipulate that the higher in order to participate fully in normal school salaries are to insure better teachers and better activities. schooling for disadvantaged children. To this end The Commission encourages rural schools to guidelines will be useful. Higher salaries may be conditioned on certain levels of teacher training experiment with several techniques of meeting the educational needs of children in these important and education, Schools may have to be accredited early years. Some innovations that might be by State or regional agencies. Provision should ap- perhaps be made to give teachers time and money propriate include a longer school day,summer programs, teacher assistants and tutoring pro- for advanced training or special training related to teaching the rural poor. grams, use of diagnostic instruments, and develop- The Commission is impressed with the dedica- ment of more effective instructional materials. tion of many teachers in the public schools. More Attention must be given to meeting the basic rewards for, excellence might stimulate greater physical needs of children at an early age, particularly children from culturally deprived homes. effort. Recommendations to satisfy these needs are offered The Commission recommen4 in other sections of this report. livrrea CLAsseloom To.comes.Experience with 4. That private foundations and industry the Elementary and. Secondary Education Act and take a More active interest in the quality of other compensatory education programs indicates rural sChool teachers and set up a, system of that the quality of classroom teachers is probably awards for excellence. the most important factor in the; schooling of economically deprived children (17). School dropouts These awards should give particular attention with both high and low IQ levels consistently as- to the performance of teachers with culturally sociate the reason, for dropping out with their deprived students. teachers. The difference in standards for teacher trainin. g A. general overhaul of the rural educational and employment among States and institutions is establishment with respect to teachers is long over- itself a violation of equality of educationkl opportunity.' It is suggested that serious consideration due. First, teacher salaries must be increased to be given to the establishment of minimumgnalit- attract more talent to rural areas. There is also neeet fications of teachers in public schools throughout to improve the training of teachers and to provide the country. equintint and facilities for them to be effective. Research and development efforts inof D Particularly in ru,..tel areas the attitude ofmany are expanding rapidly. It is °medial to the im- teacheis is provincial since they return to teach in provement of classroom instruction to a their hoene community. They are victims of tradi- m of effectively & : the new ketsnirl- tional attitndes which adversely affect the teaching edp that is being generated. .; 01 and work- of children ftom deprived socioeconomic back- shops have been insuffiPient. grounds (7). The Commission reeommondst- Federal funding to supplement teacher salaries in low income rural areas has become essential. The 5. That an "educational extension smite* be tax base has been so eroded in most of these areas created to facilitate tit* adoption and stoctive 4' use of new educational technology in elemen- mentary and secondary schools will help. It must tary and secondary schools. be drasticalk different, however, from the present system. A. system that is much more innovative This service should work closely with the net- and creative must be developed. work of national and regional education labora- The' need for effective guidance and counseling tories authorized by the Cooperative Research Act is particularly important in rural schools because as amended by Title IV of the Elementary and the gap between high school and college or a job Secondary Education Act. is so wide. Most rural youth must leave the local The Commission is impressed with the concept area either to get additional schooling Jr to get of a national network of 20 regional educational a job. They must have professional help in making laboratories which would speed progress in edu- this transition. cation at all levels. These laboratories represent an association of colleges and universities, State The Commission recommends - departments of education, schools, and other educational interests working together to solve the 6. That Federal, State, and local govern= educational problems of a geographic area. ments take the necessary action to provide a It will be essential to coordinate the efforts of more effective guidance and counseling pro- the laboratories and to build on the knowledge that gram in rural schools. is. accumulated. It would be the responsibility of the extension service to draw on this knowledge This will require more counselors to work with and to bridge the gap between the development students at all age levels, with special attention of technology and its application in the classrooms. to dropouts and potential dropouts. It will also Extension personnel would work closely with State require job placement and follovvup. At least one departments of education and for a time might covinselor in each high school should be a fall-time be attached to local school systems which need or part-time employee of the public employment assistance. They would also work very closely with service. teacher training programs at the State level. The task of orienting students to the world of Good teachers are in extremely limited supply work has been woefully neglected by counselors throughout the country. Universities need Federal in the public schools. In the words of one re- aid to improve and expand their teacher education searcher, "...Apparently the professionalization programs, including the training of specialists in and spread of school counseling has begun to take the teaching of language, arts, and arithmetic to on a case-work, clinical character; such termini- the disadvantaged. The Commission also hopes ogy as 'sibling rivalry,' overly dependent,' un- that teacher training programs will give attention happy at home,' girl crazy,' is substituted for the to the problems that are unique to rural areas and much tougher task of orienting the child to the to rural people. world of work" (18, p. 38). The author of this MORE AND BETTER GUIDANCE AND COUNSELING.- statement may be wrong in his judgment regarding A basic problem of the rural poor is the lack of the difficulty of different aspects of the guidance continuity in the learning process. Major gaps exist and counseling function. However, the Commission between the home and the school and between the agrees that the job counseling aspect has been school and society. There are also major breaks neglected. within the school system. Students from poverty A good guidance and counseling program in a families are not able to bridge these gaps as effec- rural school should, as a minimum: (1) Establish and maintain rapport with every student in the tively as those from nonpoverty families. school system beginning when the child first enters Many students drop out of school where these school, (2) provide intensive personal consulting breaks in the flow occurbetween grades, at the services to students in all grades, (3) assist all end of the legal age of compulsory school attend- students to make rational choices regarding future ance, between high school and post high school educational and occupational alternatives, (4) pro- institutions. vide an effective liaison between the school, Means must, be developed to close the gaps and student, family, and community, (5) provide con- otherwise reduce the number of students who drop sultations for classroom teachers and school ad- out. A good guidance and counseling system in ele- ministrators on problems relating to students and

46 *, - -- ^

school programs, and (6) administer a student and private industry enables them to see at first- work-study experience and financial aid program. hand how education can help them get ahead in An effective counseling service could make a the world. Part-time work will also help them de- significant contribution to the rural school system. velop habits that will be useful both in school and Too many students are being prepared for jobs on the job. It is also important for youngstersfrom that do not exist any more or for jobs that repre- poor families to have a chance to earn money.Par- sent a dead end street. Many of the students who ticipation in useful work will not only make the graduate from high school are not finding jobs academic aspect of schooling more meaningful, because of an inadequate school program or be- but will make the transition from school to work cause they are not directed tothe jobs that are smootherthe world of work will have come alive available. to them. The academic side of schooling can be The counseling program should give much more strengthened because of increased motivation (8). attention to keeping parents informed about school The Commission is concerned that work-study pro- programs as they relate to theirchildren. In the grams are not available to manystudents in rural final analysis, it is the parents that have the great- areas. est influence on the child. If the parents feel that education is important and that the programs in The Commission recommends- the school are relevant to occupational opportunities, they will support the school and encourage 8. That programs providing part-time work both in school and out of school be extended to their children to get.a, good education. It is very important in the education of disad- every rural school system in the country. vantaged students to involve both parents and It suggests further than a fund be provided to students in the planning of educational programs. each school system to help meet the financial needs The attitude of students regarding the amount of of students on a continuing and flexible basis. control they have over their environment has been This means that programs such as the Neighbor- found highly related to achievement in school (8). hood Youth Corps should be an integral part of Involving parents and students in a meaningful every rural school system.Counseling and guid- way in the planning of school programs will dem- ance personnel in the school shouldbe fully in- onstrate to the entire family that they do have volved in the administration of these programs some control over their own destiny. The coun- and perhaps be the custodian of the special fund. selors and teachers can develop a better relation- Whoever, administers the fund should be given ship between the school, the student, and parents. maximum flexibility in using the money to help However, only those responsible for the basic students meet special needs such as paying off a school programing can involve them adequately. debt, getting medical attention, or whatever is necessary to keep them in school. It mightbe noted The e OM/minion recommends- that in a major research project on t'..a cause of 7. That parents and students at appropriate dropouts from high school, financial reasons were ages be involved at all levels in the planning listed first by both pupils and parents (19). and development of school programs. Most students who drop out of school indicate that one of the main reasons they drop out is be- WORK-STUDY AND FINANCIAL AssismisrcE.The cause they feel that the curriculum is not prepar- value of part-time work in helping children from ing them for anything useful. Students and par- economically deprived homes to stay in school has ents alike in one study stated this as the second been clearly demonstrated by the Neighborhood most important cause of dropping out (19). Youth Corps, by work experience programs under the vocational education acts, and by the work- The public schools must develop more and better study program under the. Economic Opportunity occupational educatipn programs to serve the large Act. The Neighborhood Youth Corps has in many percentage of students who do not go to college. cases cut the high school dropout rate to a fraction In order to do this, occupational education must be of what it had been. upgraded so that it no longer portrays the image Students need to be exposed to the world of work of a second-rate kind of education. It is a. well- at an early age. Part-time work in public agencies established fact that schools in general over the years have regarded occupational education pro-__programs should bedeveloped at the elemen- grams as a dumping ground for incompetent stu- tary, -high school, and post high schoollevels. dents. Academic teachers hold the programs in low esteem, which makes it difficult to attract good Occupational education in high school should vocational teachers. A lack of general support for concentrate on developing good work habitsand occupational education is also reflected in obsolete adaptability. It should orient students to a cluster equipment and inadequate supplies and materials. of occupations rather than prepare them for a The cost of textbooks is a tremendous burden specific job. for needy families. In recent years,. many States Occupational education programs in high school have made books available free of charge to all should blend with general education so that itis students. In other States, however, the books have not a one-way street. The student should.stillhave to be rented or purchased by parents. The special an option after graduation to(1) Go to college, fund referred to above should not have to be used (2) enter a post high school technical institution, to purchase books. or (3) enter into employment. Federal funding of vocational-technical educa- The Commission ;recommends tion should include incentives to insure that schools cooperate closely with industry and or- 9. That every needy child be provided books ganized labor. The programs should merge with free 9f charge. on-the-job training and apprenticeship programs. Attention should be continually given to job ob- OCCITPATIONAL PREPARATION.The college grad- solescence and equipment changes in response to uating class of 1966 in the United States repre- new technology. Arrangementsshould be worked sented 20 percent of those who began first grade. out with industry so that the school can concen- For rural areas, it would probably be closer to 10 trate on the more basic skills, with specificjob percent. About 8 out of every 10 students that training left to industry. began school together sought employment in jobs A basic problem in providing good. occupa- requiring less than a college degree. Only 8 percent tional training programs in the public schools is of those not going to college received any voca- the cost of equipment and facilities and the short- tional training in high school (SO). age of good teachers. Manyrural schools cannot One reason why occupational education pro- afford an effective program. The Commission en- grams suffer from low prestige is that they are courages exploration of techniquesof sharing fa- often not in tune with changes in The economy. cilities among schools, including the development They are preparing students for jobs that no of equipment pools. It might be even more appro- longer exist or teaching them techniques that have priate to share teachers and students. long since been discarded by industry. Programs BETTER ORGANIZATION AND ADMINISTRATION. in many schools do not orient students to a world The quality of rural education is closely associated of work, but rather zero in on teaching a specific with a continuing large number of small schools. Most of these small schools have inadequate li- job that may not even exist by the time the student braries, poor facilities and equipment, high teacher graduates: turnover, low salaries, inadequate health services, The Commission is concerned about the poor inexperienced teachers, inadequate supervision, quality of occupational education in the public restricted curriculums and extra-curricular pro- schools because of the importance of technical grams, inexperienced administrators,community training in today's economy and because of the pressures for status quo, little chance foreduca- relationship of technical education to the interest tional research, and too few teachers (21). needs of students from low income families. In many instances, small rural schools must be maintained because of transportation problems The COM/171/188i0ft recommends and the relative isolation of the community. Spe- 10. That the Federal Government in coopera- cial assistance must be given to these schools tion with the States develop and expand occu- both financial and technical. Many things can be pational education programs that will enable done, including more effective use of educational students to adapt to a changing society. Such television, film, audio tape, and automated self-

48 .1.1.1111101.11.1.6~~0.~.~11.-

teaching devices. These schools might also benefit nomically deprived youth and providing special- from sharing services with other schools to make ists to help implement the plans. The State agency specialization possible. They may also share pupils should carry on a continuing program of research for certain courses. and evaluation of the public school system within The advantages of consolidation of both school the State. districts and school units, however, are such that A stronger State unit could facilitate the devel- only in extreme cases should schools with small opment of comprehensive programs at the local enrollment be maintained. Research indicates that level by helping many local schools work together excessive costs are found in schools having fewer and share facilities and teachers. Where consoli- than 10 teachers and that unit costs in schools hav- dation of small schools cannot be achieved, func- ing fewer than 100 pupils are about twice as high tional linkages among schools might be feasible. as those in schools with more than 200 pupils. One Specialization of function by grouping several study found that per capita costs decrease rapidly small schools may be one way to improve the qual- as enrollments rise to about 200 pupils, decrease ity of programs without massive consolidation. less rapidly up to nearly 700 pupils, and level of The fact is that States have a major role in the in schools ranging from 700 to 3,000 students (V). development of school programs. Their role has It is apparent that States must take the leader- expanded recently and will assume even greater ship in achieving school system reorganization. significance in the future. School programs are not Local schools cannot be expected to vote themselves likely to be of higher quality than the programing out of existence. that lies behind them at the State level.

The COMIThi88i071, recommends- The Commission recommends- 11. That States establish uniform criteria for 12. That a substantial increase be made in the organization and administration of school Federal funds and technical services to help systems within States. State education agencies develop a more effective program, including supportive services for State education agencies are being requested to rural school systems. assume more responsibilities for the total educational program. Their functions and responsibili- MEETING THE NEEDS OF SPECIAL GROIJPS.There ties have been increased tremendously in recent are several groups of people in rural America years as a result of such programs as the Elemen- with problems so severe that they deserve special tary and Secondary Education Act and the attention. They include children of migrant fami- Teacher Corps. lies, Indian Americans, children of families whose It is appropriate that the State agencies take mother tongue is not English, and Negro children. over more responsibilities because of the need for Migrant Workers. The educational status of more equitable programs among school districts migrant children was summarized by former Sec- throughout the State. It is especially important to retary of Health, Education, and Welfare, An- rural areas to have a strong State organization. thony Celebrezze : "Migrant agricultural workers Many of the programs currently being planned at are often described as America's forgotten people the local school district level probably should be and their children are referred to as the most edu- "packaged" at the State level. cationally deprived group of children in our Na- State education authorities need to develop an tion. They enter school late, their attendance is poor, their progress is slow, they drop out early; overhead unit that can effectively support local consequently their illiteracy is high. Studies in- school systems. This involves more than planning. dicate that most migrant children are far below It involves research and operations. Many educa- grade level and that their school achievement is tional programs that deal with special problems usually under fourth grade." such-as those associated with poverty have signifi- Of the approximately 415,000 children of mi- cant economies of size. The State educational grant parents, it is estimated that 175,000 to 225,- agency should have the resources to plan and carry 000 do not migrate, but stay at their home base out supportive services. This might involve help- with relatives. It is these who have the best op- ing local school districts plan programs for eco- portunity to get a good education. Obviously, any

49 effort that can L made to stabilize the family in ing to a teacher who speaks a language they do the community will help the child (4, p. 379). ti et understand. The children of migrant families who move with This is a major problem in many, schools. It is the family have the greatest difficulty in getting a .1specially acute in rural areas in the Southwestern good education. The problem is to make it possible 9tates. Educational levels of Spanish Americans for them to stay in school. Many migrant families in these States are from 3 to 6 years below that of are not willing to leave their children at home the white population. A part of this low level of when they migrate. Children are an integral part educational achievement is associated with lan- of the working family complex. Young girls of guage and cultural barriers (4, p.394). school age. are often kept out of school to babysit. The communication problems of students of Teenage boys work in the fields. different national and ethnic backgrounds is asso- Day-care centers for preschool children and in- ciated with. symbols and content of educational fants are helpful. But more aid is needed. Schools materials as well as the basic language. In general, along the path of migration may be able to set up teaching materials relate to the cultural heritage meaningful educational programs for migrant of this country and illustrations are in terms of children, if the schools are provided with adequate the white majority. Children from different na- financing. Unfortunately, local funds are rarely tional and ethnic backgrounds often cannot relate available to provide additional classrooms, teach- stories in their books to their home or community ers, transportation, and supplies for children of environment. the migrants. Local people are reluctant to tax Many schools facing this problem have de- themselves for the education of children who may veloped commendable programs. For example, a program initiated in Miami schools in response reside in their district for periods of only 2 to 8 to the recent influx of Spanish-speaking children weeks. from Cuba illustrates that the problem can be The Commission recommends- solved (22).This program involved the development of an entirely new set of textbooks and other 13. That Federal grants be expanded for the teaching materialsold symbols were discarded education of migrant children. and cross-cultural symbols inserted. The techniques used will help develop within the students a The Office of Education should give priority at- positive sense of identity and at the same time an tention to evaluation of the different techniques appreciation of the different culture associated that are being used in the education of migrants with American life in general. with the idea of developing a procedure for dealing with the problems that could be adopted more The Commission recommends universally. 15.: That Federal grants be made to local educational agencies that enroll a significant num- The Commission further recommends- ber of students whose mother tongue is not 14. That adult education programs be cou- English to develop bilingual and other special pled with education programs for children of programs to overcome the communications migrant workers on an expanded scab. problem. The Commission further recommends- Basic adult education programs should be provided for adults along with compensatory pro- 16. That at all levels schools assist, through grams for youth. A learning environment would the curriculum, textbooks, and other resources; thus be created in the home. in the development of a positive sense of iden- Children From Non-English,-speaking Homes. tity and pride within and between all children; It has been estimated that there are over 2 mil- furthermore, that curriculum materials be de- lion bilingual and bicultural children of non- veloped and utilized with these objectives in English-speaking ethnic or nationalityback- mind. grounds in this country. Many of these children Indian Americans: School census figures show find that when they enter school, they are listen- that in 19&a6 there were 152,114 Indian children

50 between the ages of 6 and IE. Indian children pre- with teachers who can reach and inspire Indian sent extraordinary needs because of culture and children. language differences, isolation, poverty, and a rela- Even today Indian education often fails to pro- tionship with the dominant society that has been vide a curriculum based on the needs and wishes marred by broken hopes and promises. . of the Indian people. The "Dick-Jane" approach Indian people have not in the past enjoyed the is still dominant, with father shown wearing a full benefits of Americancitizenship. For some suit, carrying a newspaper under his arm,and time, determined efforts were made todestroy the coming home to a large house from which emerge many cultures ofthe Indian on the ground that several blonde, blue-eyed children. they were major deterrents to fullmembership in At the insistence of Indian leadership thisis our society.Schools were the institutions charged changing. Indihistory, biographies, culture, and with this destructive function. As a.result, a few stories are being prepared for use in schools en- Indians made the traumatic adjustmentbut many rolling Indians. more did not. An example of the new look in Indian education After years and years of effort, characterized can be seen at the RoughRock Demonstration by many failures, a new day is dawning forthe School located on the Navaho reservation. This Indian people. Finally, through a recognition that school is controlled by a five-member all-Indian Indian people, as well as all other Americans, school board of which only one member ever at- must have a voice in their future andin policies tended school and then only for 3 years. Yet these and programs affecting them, Indian educationis "uneducated" Indians are providing imaginative changing from an "either-or" emphasis to a "both- and creative leadership, which has astounded and" approach. This change, which basically re- educators, Congressmen, and others. The schoolis sulted from the desires and demands of theIn- proving conclusively that Indian people do care dians themselves,. now makes it possiblefor an about the education of their children and are able Indian to be both, an Indian. and an American, both to direct and control that education regard- proud of both and combining the best of each,in- less of their level of formal education. In less than stead of the disastrous and divisive approach a year over 50 differenttribes have visited Rough which forced the Indian to make a choice ofbeing Rock to see how it was organized and to learnhow either an Indian or an American. it might be replicated on their own reservation. The profound change in attitude mentioned The future of Indian education lies in such an above creates a climate in which Indian education approach where Indian people are maximallyin- can be aneffective tool in raising the overall stand- volved and in control. ard of living and well-being of the Indian Amer- Indian tribes and Indian people must in in- ican. However, the needs are so great that unless creasing measure have the opportunity to enjoy intensive effort is made the original American will the right to control their destiny, including even continue to be denied full partnership in our the right to be wrong. society. The Indian Education Center at Arizona State The COMIThi88i011recommends- University estimates in 1967 that on the Navaho 17. That a classroom seat be providedfor reservation the average num- of years of school every Indian child ofschool age. completed by Navaho adults over 25 years of age is less than 2 years. Furthermore, there are ap- 18. That the schools serve as a focal pointof proximately 8,000 Indian children out of school, community life with significant andmeaningful .in many instances because no facilities are avail- involvement of Indian people, including local able. Since the birth rate of the Indian is among control. It is further recommended thateduca- the highest in the nation, the problem of providing tion of Indian children be in day schoolslo- education for every Indian child is becoming more cated as close to the homes of Indianchildren and more Elmo. as possible. There is an urgent need to get teachers who understand and respect the Indian.Special 19. That community development be used as teacher preparation programs must be developed a key element.in Indian education and that to assure that schools enrolling Indians arestaffed schools be staffed with people trainedin this

2713-606 area, Indian education sliould serve thetotal Negro schools are misleading. There has been a educational needs of the tribe and community substantial increase in the number of Negroes at- and not be confined to the education of children. tending nearly all-Negro schools (RS). The Commission is seriously concerned about the 20. That Indian history, biographies, and cul- lack of progress in improving the education of ture ,be included in the school curriculum as a Negro youth. A large percentage of rural poverty means of assisting Indian youth in acquiring a is concentrated in the Negro community, and in positive self-image. most cases it is associated with extremely low levels of educational attaimnent. 21. That in schools wherein Indian students A report "Racial Isolation in the Public Schools" are in a minority a special effort be made to was submitted to the President in February 1967 meet their unique needs. by the T.S. Commission on Civil Rights. This 22. That a comprehensive program of re- report recommended that. Congress mtabkish a tai- search on Indian education be conducted, in- lor/in standard for the elimination of racial isola- cluding examination of curricula, teaching pro- tion in the schools. Appropriate legislation and cedures, followup studies of graduates and measures to make this recommendation effective dropouts, and local control and involvement. were spelled out. The recommendations would emphasize State action in response to Federal stand- Negro Chiliren and Other Racial Mbwritiee. ards. The Commission wholeheartedly endorses The Coleman report points out glaring weakness the program proposed to the President. in the education of Negro youth. Results of this study show that the level of educational attain- The 00111712i88i076 reCOM/M4148 ment of Negroes decreases relative to whites as 23. That immediate action be taken to imple- both progress in grade. For example, in the sixth ment proposals by the Commission on Civil grade, the average Negro student is about one and Rights to eliminate racial isolation in the public one-half grades behind the average white student schools in the interests of both students and in verbal achievement. By the 12th grade, the average white student performs at or slightly teachers. below the 12th grade level, whereas the average While it is important that a better racial mix Negro student performs below the 9th grade level be achieved within the schools, the Commission (8). recognizes that merely putting people in proximity It is obvious that Negro youth are not receiving to each other will not eliminate racial isolation. equality of educational opportunity with white The general attitude of the white commimity students. A large part of this is due to the isola- and especially school officialswith respect to the tion of youth by race in the public schools. Scores ability of minority students to learn and partici- on achievement tests show that Negro youth benefit pate fully in society must change if the racial significantly from being in school with a large problem is to be overcome. white enrollment even when other factors associ- The problem of educating Negro and other mi- ated with the quality of schooling are controlled. nority youth is complex. A significant factor that On the other hand, the scores on achievement tests must be considered in attempting to solve the for white students are not significantly affect;' problem is job discrimination. This results in edu- by the racial composition of the school. cation not being worth as much in an 'economic Quoting from the Coleman report (8): sense to minority students as to whites (Z4, p. 0). The principal way in which the school environments It is difficult to get students to pursue high educa- of Negroes and whites differ is in the composition of tional objectives when they see others who pursued their student bodies, and it turns out that the composition of their student bodies has a strong relationship to the these objectives earning low wages or looking for achievement of Negro and other minority pupils. jobs. About 20 percent of nonwhite teenage boys In spite of efforts to bring about a better racial were unemployed in an average month in 1966 balance in schools, the trends show that racial (05, p. 41). isolation has in fact been increasing. Figures show- The Coleman report showed, however, that ing a decreasing proportion of Negroes in all- Negroes and other minority groups do benefit from

.52 improvements in schoolingmore than white COMPULSORY SCHOOL ATTRNDA NOM TWO State, students. Mississippi and South Carolina, no longer have a compulsory school attendance law. In Virginia, Lae uonunissionThe4'1 recommends-- local governments have the option to adopt a law or not to have one. 24. That government at all levels give pi.. The rejection of compulsory attendance laws ority attention to improving the quality of since 1955 represents a step backward in public schools that have in the past served a student education. Many court decisions over the years body that was predominantly Negro. have reflected the strong belief among Americans that children must receive at least a minimum of As better racial balance is achieved in the schools, education (26, p. 5). Not only is this a child's the number of schools that are predominantly right; it is a necessity in a democracy. The Com- Negro should eventually be very few. mission, therefore, is concerned that any State in RURAL SCHOOLS AND COMMUNITIES. From the Union would leave the decision regarding about 1935 to 1955, nationwide interest in rural school attendance to a young child or to parents education was focused on the concept of the "com- who may not recognize the value of an education. munity school." The principal idea was that tha school should be an integral part of rural com- The Commission recommends munity life, the curriculum should incorporate community problems as essential elements in the 26. That States that do not now have a state- instructional program, and all community agen- wide compulsory school attendance law take cies and resources should be coordinated in the immediate steps to enact one. teaching-learning activities of the rural school. The Commission is concerned about the move- Special Educational Programs for Adults ment away from this concept, since it is still valid The educational system faces a monumental task in rural communities. Rural schools are needed in supplying the continuing educational needs of more than ever to serve as a focus of community adults who have had the prescribed dose of formal lifeprovide recreation facilities for youth and schooling. Efforts must be made, however, to atone adults, serve the needs of adults for continuing for years of neglect which resulted in a piling up education, provide a cultural dimension to rural of adults in rural America without enough basic communities and, most of all, provide leadership education to learn a skill or comprehend new tech- for overall community development. The rural nology. These people must be provided more gen- school can make a great contribution to soliring eral education, technical training, and informal the problems of low income rural people. education to help them cope with specific problems. BASIC En-mimicIn 1964, there were approx- The 0027071h8i0112 recommends- imately 15.1 million heads of families, or 31 percent of the total in the United States, with 8 years 25. That rural school personnel exercise or, less of formal schooling. The percentageof all greater initiative in using the resources of the family heads in rural areas with 8 years of school- school to serve the whole community, and that ing or less is much higher. The Commission views foundations, industry, and labor groups give the problem associated with these adults as com- greater support to schools in developing activ- manding priority attention. ities related to community problems. The Commission recommends- The schools should coordinate community development efforts with the area development districts 27. That the Federal and State governments discussed in other sections of this report. step up present efforts to eliminate illiteracy The school represents a tremendous investment and increase the. level of general education in capital resources. These resources should be used among adults, and that other institutionsand fully and effectively. The school building in par- agencies serving rural people, such as churches, ticular should be available for all types of com- community organizations, business organiza- munity programs. tions, labor unions, Cooperative Extension 53 Service, and agritultural agencies, be enlisted this is possible in many sections of the country. in support of these programs. As larger farms shift away from labor intensive commodities as a result of a tight labor market, An effective adalt educational effort on a wider the prospects for low income farmers to increase scale is a necessary base for training and retrain- their earnings with horticultural and specialty ing rural people for specific jobs. Job training and crops looks brighter. retraining on a greatly expanded scale is one of the These programs have also demonstrated that to more pressing needs of low income rural people. communicate adequately with many low income Programs related to this need are discussed in an- farmers and get the response required, techniques other section of this report. of education and assistance must take a different INFORMAL EnucArrioN.The educational needs tack than the techniques used with average farm- of many rural families must be met on a continu- ers. Frequent farm visits, counseling, and record- ing basis. Those that have been neglected in the keeping by the educator are essential. A telephone past, however, must be given extra attention. Spe- call to determine if an insecticide has been applied cifically, the Cooperative Extens; sr Service, which on schedule may mean the difference between suc- is the educational arm of the U.S. Department of cess and failure. Agriculture and the land-grant universities, must have its mission clearly identified .vs ith the prob- The Commission recommends- lems of low income rural families. A continued and closer working relationship between the Extension 28. That Federal funds be appropriated and Service and the Office of Economic Opportunity is earmarked to create management consultant necessary in meeting the informal educational teams to work intensively with low income needs of rural families. farmers around 45 years of age and older. Boxed-In Farm Families.Many farm operators with less than $3,000 annual net income, be- These teams would make maximum use of sub- yond middle age, and with, limited education are professionals. Farmers involved in this program boxed in. The majority of these families will re- would be eligible for a training allowance equiva- main in rural America. They have little capacity lent to that provided enrollees in manpower training programs. for nonfarmwork and in most instances find farming their best alternative. Farming is a way of life This management consultant program should to them and they have no desire to move to an utilize the credit program authorized under the urban area. Economic Opportunity Act and other resources In recent yeers, pilot programs have shown that that might increase family income. (Sze the dis- incomes of these farmers can be improved. A cussion on farm credit in chapter 13 of thisre- notable example is the Yorkville Management port.) The consultants would be expected to pro- Class begun on July 15, 1963, by the Tennessee vide assistance to farmers in obtaining part-time Division of Vocational Education. The results of work off the farm as this is made available through this class showed (27) : expanded public works. This program should probably be administered cooperatively by the Exten- . . attendance averaged 97.4 percent. Average net in- sion Service, the Office of Economic Opportunity, come for the trainees, both white and nonwhite, in 1962 and the Farmers Home Administration. had been $348, but by 1964 it was $1,285. Of the 19 men who completed the course, 14 increased their incomes by The program recommended should not be more than 100 percent, and all are confident that their initiated prior to an intensive market analysis to incomes will continue to grow through coming yea's.. determine the extent to which production of com- Intensive work with small low income farmers modities on these small farms can be increased through such projects as the one referred to above without seriously depressing prices. Since such a indicates what can be done through the introduc- high percentage of total farm production, comes tion of new commodities, improved practices, bet- from larger commercial farms, there is reason to ter management, cooperative activities, and wise believe that a significant increase can take place use of credit. The Office of Economic Opportunity on the smaller farms without seriously affecting in cooperation with the Extension. Service and the the market. This program should be recognized as Farmers Home Administration have shown that a short-run program to help boxed-in farmers and

54 not a long-run solution, to the small farm prob- professional and subprofessionAl aids to work lem. Other recommendations are directed at pre- intensively with all low income rural families. irenting farmers from getting boxed in. Younger Farmer8 on the Margin.Thousands These teams should providepersorjrlizedcoun- of younger farmers earning a poverty income are seling and educational services. The Extension on the way to joining the boxed-in group. Many Service should call on voluntary leadership de- are receiving just enough assistance from educa- veloped through home demonstration clubs to sup- tional and credit agencies to keep them on the plement this effort. verge of poverty. There are some who,with addi- Out-of-School Education for Rural Y outh. tional help, could develop a viable farming op- Many organizations in rural areas which seek to eration. Others should. take advantage of a train- serve the needs of rural youths, have aspecific ing program and other services and move into a orientation designed to meet one or more needs of nonfarm job. Preventing young farmers from be- the youths. Despite the proliferation of these pro- coming entrenched in a poverty situation should grams, many pressing needs of youths are notmet be on the priority list for agencies serving rural and those from low income families are neglected. America. Cooperative Extension places entirely too much emphasis on enrolling youth in 4-H clubs and not The Commission recd: enough on solving the problems of youth. Exten- sion ought to concern itself with juvenile delin- That Cooperative Extension in coopera- quency, parent training, child care, andyouth tion with the Employment Service and other opportunities. In carrying out its youth program, rural agencies provide younger low income Extension's primary audience should be youth- farmers with the information they need to de- organization leaders, parents, and, school officials, cide whether to stay in farming or seek non- among others. farm employment. Moreover, if a decision is Children from low income families in particu- made to stay in farming, appropriate rural lar need to be involved in real life experiences, in agencies should provide intensive assistance to leadership development programs, and in the en- help them develop a viable farming operation. tire range of community-activities. In too many instances, the rural poor are excluded from many Low Income Rural Families. Low income families not only need to earn more but also need to of the organized youth programs, either because their parents cannot afford the fees or because they learn how to spend their incomes more effectively. The wives of most rural families in poverty have simply do not fit in with the other members. little formal education. They have not had the ad- The Commission recommends: vantage of attending homemaking classes in high school and many have not been involved in the 31. That the Cooperative Extension Service home economics program of the Extension Serv- devote more of its efforts toward development ice. Many would not know how to take care of the of a comprehensive youth program that focuses family's nutrition, health, and clothing needs even on the total development of theindividual. This if money were no obstacle. may involve less emphasis on 4-Hclubs. Some of the more successful community action efforts by the Office of Economic Opportunity in It is also suggested that a fund be established cooperation with Extension home economists have to enable rural youths from low income families been with the wives of poverty-stricken families to attend youth camps and to participate in other teaching them to stretch income by buying low-cost useful projects. food and preparing it so that it is appetizing and Education for Social and Economic Develop- nutritious, teaching them how to make attractive ment.The well-being of people in rural America clothing with low-cost materials. All this has depends largely upon how well the local leadership helped to upgrade the quality of life in these homes. comprehends the changes that are taking place in society and their ability to adapt community in- The COM/112i881,012 recommends- stitutions to these changes. Contrary to the think- 30. That the Federal Government provide ing of many people, there is no such thing as funds to create homemaking teams composed of bypassed areas in the American economy. Every

55 community is affected in one way or another by However, as they now exist, these programs are the forces of national growth. Some communities limited in their potential. Funds are made avail- or areas grow at a rapid rate, others decline, and able to colleges or universities on the basis of spe- a few remain static. cifie project proposals. It is extremely difficult for At the community level, it is a serious problem colleges and universities to use funds effectively for the leadership to adjust to these forces of when they are appropriated in this mamier. They growth and change. The problems of accommoda- cannot plan over a long, enough period to develop tion to growth are about as difficult as those asso- expertise in transferring technology to problems ciated with a lack of growth. For example, in of the community as they have, for example, in growing communities, these problems include over- technical agriculture. crowded schoolrooms, inadequate water and sew- The projects taken on by the universities result age facilities, and not enough recreation facilities. in what amounts to "educational convulsions" On the other hand, declining communities are sapping the strength and energy of the regular faced with a shrinking tax base and a loss of lead- faculty and, taxing physical facilities. Duration of ership resulting from out-migration. The commu- the projects does not permit re-tooling, and it is nity must exert tremendous effort to maintain the difficult to recruit competent staffs. Generally quality of public services. In many instances, such faculty and facilities already used to capacity are communities must join with others in order to called on to exert additional effort. remain viable. Communities that remain static in terms of population have the problem of meeting The Commission recommends the growing demand for public services without increased local resources. 33. That each State select one university or The land-grant universities have contributed university complex which will develop, as an significantly to the structural upheaval in rural integral part of the university, a program of America. Imbalances in the rural sector to a large continuing education and public service. extent are the byproduct of technological changes It is also suggested that the Federal Government in agriculture. These universities that responded streamline administration of all Federal programs so well to the charge given them to develop agri- relating to this function and allocate funds to the cultural technology should be given another States by an appropriate formula. It will; be desir- cb Arge at this juncture. They should at this stage able for Federal personnel to work with the States focus attention on helping people in rural Amer- in designing programs and achieving coordmation. ica to adjust to the forces of changeto restore This Federal cooperation, however, should not in- order to their lives and to their communities, chide authority to cut off funds in the short run. People who have fallen by the wayside need help, In all probability, universities involved in such and communities ripped apart at the seams have to be put back together. a program will find it necessary to establish the kind of continuous program and organization em- The Commzission recommends bodied in the concept of the Cooperative Extension Service. To be comprehensive, and to serve the 32. That the land-grant universities concen- total community, however, all of the resources of trate more research and extension education re- the university will have to be brought into play. sources to problems of people and communities ii, adjusting to changes brought about as a re- References sult of economic growth and development. (1) U.S. D7PARTMENT OF COMMERCE, BUREAU OP THE CENSUS. U.S. SUMMARY. PC (1)IC U.S. Particular attention needs to be given to the (2) JAMES D. Cowin. SCHOOL DROPOUT RATES AMONG problems of small business and small communities. PAM AND NONFARM YOUTH : 1950-60. 11.S. Dept. In the past few years, attempts have been made Agr., Eeon. Res. fiery., Agr. Econ. ltpt. 42,1963. (8) U.S. DEPARTMENT OP AGRICULTURE. RURAL PEOPLE IN to extend the resources of all universities to the THE AMERICAN ECONOMY. Econ. Res. Serv., Agr. problems of rural and urban communities and to Econ. Rpt. 101, October 1966. (4) U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- industry through such programs as Title I of the FARE. RURAL YOUTH IN CRISIS : FACTS, MYTHS, AND Higher Education Facilities Act of 1965 and the soma. CHANGE. Office of auvenile Delinquency and Youth Development, Welfare Administration, M- State technical assistance program. 3001-1965.

56 (5) JOHN K. FOLGER. GOOD SCHOOLS FOR SMALL COMMUNI- (15) F. RIESSMAN. THE CULTURALLY DEPRIVED CHILD. New TIES. Agr. Policy Inst., N.C. State Univ.,Raleigh, York, Harper, 1962. October 1965. (16) MARTIN DEUTSCH. THE SCHOOL DROPOUT. Nat. Educa-, (6) SOUTHERN EDUCATION REPORTING SERVICE. ONE- tion Assoc. Washington, D.C., 1964. TEACHER SCHOOLS ARE STILL AROUND. South. Educa- (17) NATIONAL ADVISORY COUNCIL ON THE EDUCATION OF tion Rpt., Vol. 2 (3), Nashville, Tenn., October DISADVANTAGED CHILDREN. Report. Washington, 1966. D.C., 1967. (7) W. D. MCCLURKIN. RURAL EDUCATION IN THE UNITED (18) HAROLD L. WILENSKY. CAREERS, COUNSELING, AND THE STATES. (Unpublished report prepared for the Na- CURRICULUM. Journal of Human Resources, Educa- tional Advisory Commission on Rural Poverty, tion, Manpower, & Welfare Policies, Vol. II (1), May 1967.) Winger 1967. (8) JAMES B. COLEMAN, ET AL. EQUALITY OF EDUCATIONAL (19) NORMAN M. CHANSKY. UNTAPPED GOOD. Published by OPPORTUNITY. Nat. Center for EducationalStatis., C. C. Thomas, 1966. U.S. Government Printing Office, Washington, (20) ROBERT M. MORGAN and DAVID B. BUSHNELL. DESIGN- D.C., 1966. ING AND ORGANIC CURRICULUM. 11.5. Office ofEdu- (9) TASK FORCE ON ECONOMIC GROWTH AND OPPORTUNITY. cation, Washington, D.C., November 1966. THE DISADVANTAGED POOR : EDUCATION AND EMPLOY- (21) W. D. MCCLURBIN. RURAL EDUCATION IN THE UNITED MENT. Third Report., Chamber of Commerceof the STATES. (Prepared for Division ofSurveys and U.S, Washington, D.C., 1966. Field Services, aeorge Peabody College for Teach- (10) THE PRESIDENT'S' COMMISSION ON NATIONAL GOALS. ers, Nashville, Tenn.) GOALS FOR AMERICANS. Columbia Univ.,Prentice- (22) BERT COLLIER. MIAMI'S DECISION: A BLEND OF CUL- Hall, Inc., New York, 1965. TURES. South. Education Report, Vol. 2(3), Octo- (11) T. W. SCHULTZ. EDUCATION AND ECONOMIC GROWTH. (Offprint from the Sixtieth Yearbook of the. Na- ber 1966. tional Society for the Study ofEducation.) Chi- (23) U.S. COMMISSION ON CIVIL RIGHTS. RACIAL ISOLATION cago, 1961. IN THE PUBLIC SCHOOLS, Volume 1, 1967. (12) EDWARD P. DENISON. THE SOURCES OF ECONOMIC (24)FARM FOUNDATION. INCREASING UNDERSTANDING OF GROWTH IN THE UNITED STATES.Committee for Eco- PUBLIC PROBLEMS AND POLICIES. Chicago,Ill., 1964. nomic Development, 1962. (25)U.S. DEPARTMENT OF LABOR. MANPOWER REPORT OF THE (13) ARCHIBALD O. H THE OCCUPATIONAL Attubvt.- PRESIDENT. April 1967. MENT PROCESS. (Unpublished reportprepared for (26)U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- the National Advisory Commission on Rural Pov- FARE. STATE LAW ON COMPULSORY ATTENDANCE.OE- erty, May 1967.) 23044, Cir. 793, Washington, D.C., 1966. (14) BENJAMIN B. BLOOM, ALLISON DAVIS, and'ROBERT Na- HESS. COMPENSATORY EDUCATION FOR CULTURAL DEP- (27) VIVIAN W. HENDERSON. (Statement before the RIVATION. Dept. of Education, Univ.of Chicago, tional Advisory Commission on Food and Fiber, 1965. Atlanta, Ga., November 9,1966.)

Memorandum of Reservation by VivianW. Henderson and James 0. GibsonConcerning Recommendation 24 While we certainly. agree with the intentof this problems politically, financially, andmechani- recommendation, which calls for the redistribu- cally. Many reactions to the reports reflectdespair tion of resources as well as students, we believe at soon accomplishing these changesand argue that in the context of rural America it tends to against "writing off" the educational needsof reinforce one of the most misguided of the reac- Negro children in those urban areas where de facto tions to the findings of the Coleman report and segregation can be expected to remain for some the report of the Commission on Civil Rights on years to come.Recommendation 24 addresses it- Racial Isolation in the schools. Both reports in- self to such conditions. dicate that low income racial concentrations ad- However, rural America does not have these versely affect the ability of schools to teach Negro concentrations. IntegTation of dual school systems children. Obviously, correcting these imbalances in Harlem, Chicago, the District of Columbia, and should proceed immediately, and nothing which other large urban concentrations of Negroes will compounds or prolongs concentration and isola- entail massive changes which present tremendous tion of minority children should be tolerated. .Chapter 6

Health and Medical Care This Commission is profoundly disturbed by the diseases, however, still are a problem for infants health problems of low income people in rural during I to 11 months of life. America. Nowhere in the United States is the need Although infant deaths have declined for .both for health service so acute, and nowhere is it so white and nonwhite groups, the relative difference inadequate. between white and nonwhite infant deaths has in- The statistical evidence is overwhelming yet the creased. The infant mortality rate for nonwhites statistics barely suggest the inequity and the dis- was 71 percent higher than that for whites' in 1940, crimination against the rural poor in medical and 87 percent higher in 1963, and 90 percent higher dental care and in modern health services. in 196C The 1964 nonwhite infant death, rate of We have failed miserably to protect the health 41.1 per 1,000 live births represents a lag of over of low income people in rural areas. The health two decades in the nonwhite group (1) .1 The non- service they get is not only inadequate in extent White infant death rate after the first month of life but seriously deficient in quality. It is badly or- was 108 percent higher than for whites in 1945-49, ganized, underfinanced rarely related to the needs and 170 percent higher in 196C (See table 1.) of the individual or the family. Such health serv- As shown in figure 2, infant mortality is espe- ice as there is too often is discriminatory in terms cially high in, the rural Southin the Southeastern of race and income and heedless of the dignity of States where the Negro population in rural areas the individual. is large and in the States with concentrations of This Commission. is strongly of the opinion that the Indian and Mexican-American population. comprehensive, continuous health service of the Maternal mortality, like infant mortality, has highest quality should be accessible to all Ameri- declined significantly over the year& Since 1951 cans regardless of race, income, and place of resi- maternal mortality in the United States has dence. The recommendations offered in this report declined more than 90 percent. However, the rela- are designed to help achieve that goaL tive difference between white and nonwhite ma First, however, consider the facts that describe ternal mortality has increased. In the early 1940's the problem. We begin with thee facts of infant maternal mortality among nonwhite mothers was mortality. They underscore the situation in rural on the average slightly less than double the rate America as few things could. among white mothers. Since 1955, the rates among nonwhite mOthers have been approximately four Infant and Maternal Mortality times those among white mothers (table 2). In 1964, one-third of the 1,343 maternal, deaths The level and trend of infant and maternal in the United States were mothers in rural areas mortality have been used as indicators of the social and small towns of less than 10,000 inhabitants and economic conditions and the general health located outside of metropolitan counties. The level of population group& The infant death rate maternal mortality rate of 40.9 per 100,000 live for the United States has declined from 69 deaths births in these largely nonurbanized areas was per 1,000 live births in 1925-29 to 24.8 in 1964. This much higher than the national average of 33 deaths rapid decline has been due chiefly to a reduction per 100,000. The lowest maternal death rate, 25 per in mortality from infectious diseases. Today more 100,000, prevailed in the largely suburban areas than 70 percent of all infant deaths, occur in the surrounding the nation's great citie, (2). firstmonthonth of life. The principal, causes of these deaths relate to obstetrical problems, congenital 'References, indicated by italics in parentheses, are malforma4on, and prematurity. The infectious listed at theende of this chapter.y

Aa., Awn/E#470# r woRmari coogrif#,PEe467 04/MV#41 0647 4e4474Aerxeizv 4704rex -44/AP V8S256160

L NUMBER OFDEATHS UNDER -1 YEAR 1 SOURCE*NS. ANDDEPARTMENT WELFARE, OF WELFARE HEALTH, ADMINISTRATION EDUCATION, PER BY PLACEPL ACE OF RESIDENCE) UVE BIRTHSQUINTILE CECILE CENTERFURUCINFANTCHILDREN'S FOR HEALTH HEALTH ITUREAU, SERVICE.COMPUTER STATISTICS. MATERNAL NATIONAL PROJECT. AND IIIEl=1 21.0184 183 -OR 20.924.3 ins I It Z 3-4 2 I .0 111.III 2E8 346 OR-34.S MORE TE Z 244 - 27.7 la 9-107-85-8 lb ...SS Roma; -2 U.S. AVERAGE 26.4 oirsmolawirdiaW101.01011011101110Mii.

TABLE 1.-Infant mortality rates per 1,000 live births, United States,1915-64

Deaths under 1 month Deaths from 1 month to 11 months Percent excess of nonwhite (Neonatal) (Postneonatal) over white Period White Nonwhite White Nonwhite Neonatal Post aeonatal

1916-19 42. 3 58. 1 49.6 89. 5 37 80 1920-24 38. 7 51. 1 34.5 64.2 32 86 1925-29 36. 0 47.9 29. 1 57.6 33 98 1930-34 32. 5 48. 2 22. 9 47.5 .48 107 1934-39 29. 5 41. 4 19. 7 39. 9 40 103

1940-44 24. 9 35. 6 14.1 31. 3 43 122 1945-49 21. 8 30. 3 9. 2 19.1 39 108 fib 1950-54 18. 6 27. 4 6.8 17. 3 47 154 1955-59 17. 6 27. 7 5.8 15. 9 57 174 188 1960 17. 2 26. 9 5. 7 16. 4 56 164 1961 16. 9 26. 2 5 :5 14. 5 55 178 1962 1 16. 9 26. 1 5.5 15. 3 54 180 1963 1 16. 7 26. 1 5.5 15. 4 56 1964 16. 2. 26. 5 5.4 14.6 64 170

1 Excludes New Jersey, since no provision was made forwhite-nonwhite distinction on birth and death certificates SOURCE., H. C. Chase, White-Nonwhite Mortality Differentials inthe United States, HEW Indicators, June 1965.

Health Status 2 TABLE 2.-Maternal mortality per 100,000 live births, United States, 1915-63 The evidence is clear that there is a definite relationship between illness and income. We know that Period WhiteNonwhite the progressive nature of illness ultimately inter- feres with normal productive activity and results 1915-19 700. 31,253. 5 in reduced incom,3. We also know that poverty and 1920-24 649. 21,134. 3 1923-29 615..01,163. 7 its associated conditions-inadequate nutrition, 1930-34 575. 41,080. 7 unsanitary living conditions, and other ennts of 1935-39 439. 9 875. 5 poverty-results in frequent and long illness which in turn results in inability to work. 1940-44 238. 0 596. 4 Limitation of activity due to chronic illness is 1945-49 110. 8 328. 4 than among the 1950-54 48. 9 128. 7 more prevalent among the poor 1955-59 28. 2 112. 4 rich. This relationship is even more pronounced when chronic illness affects the person's ability to 1960 26. 0 97. 9 work at a job, to do housework, or to go to school. 1961 24. 9 101. 3 1962 1 23.8 95. 9 Regardless of income, rural residents, especially 24. 2 98. 1 the elderly, are much more likely to have disabling 1963 1 chronic health conditions than their urban counterparts (table 3) . Rural persons also have higher 1 Excludes New Jersey since no provision was made for white-nonwhitedistinctiononbirth and death rates of injuries than urban residents, have more certificates. days of restricted activity, and lose more days from SOURCE: H. C. Chase, White-Nonwhite Mortality Differ- work due to ilhess and injury than their urban entials in the United Stales, HEW Indicators, June 1965. counterparts. The injury rate from motor vehicle accidents is highest among rural nonfarm residents. Rural farm residents have the highest rate of injuries caused by work-related accidents. Acci- 2Unless otherwise indicated, data in this 'section are dent death rates are higher among rural than based on unpublished data provided :Iv the National Center for Health Statistics, Public Health Servtce, U.B. Depart- among urban people. In 1963,rural residents ment of Health, Education, and Welfare. accounted for 3 out of 5 deaths caused by accidents. 61

_. TABLE 3.-Percent of persons with limitation of activity due to chronic conditions, by degree of limitation according to age and residence, United States, July 1963-June 1964.

Persons with one or more chronic conditions Persons OPORIMIMMINIIIV All with no With limi- With Residence and age persons chronic With no tation, tation in condition Total limits- but not amount or tion of in majorkind ofmajor activityactivity activity

ALL AREAS All Ages 100 54. 6 45. 4 33. 3 3. 4 8. 7 Under 15 years 100 80. 0 20. 0 18. 0 0.9 1. 1 15-44 years 100 52. 8 47.2 39. 4 3. 3 4.5 45-64 years 100 33. 9 66. 1 45. 8 5. 8 14.4 65 years and over 100 17. 2 82. 8 33. 2 7. 6 41. 9

URBAN All Ages 100 54. 7 45. 3 34. 1 3. 3 7. 9 Under 15 years 100 79. 5 20. 5 18. 5 O. 9 1. 2 15-44 years 100 53, 1 46. 9 39, 7 3. 2 4.0 45-64 years 100 35. 4 64. 6 46. 5 5. 3 12. 7 65 years and over 100 19.2 80.8 35,5 7.3 38.0

RURAL NONFARM All Ages 100 54.4 45.6 32.0 3,6: 9.9 Under 15 years 100 80. 4 19. 6 17.7 1.0 O. 8 15-44 years 100 51. 5 48. 5 39. 9 3. 5 5. 1 45-64 years 100 30. 5 69. 5 44. 8 6. 7 18. 0 65 years And over 100 12. 8 87.2 28. 6 8. 1 50. 5

RURAL FARM All Ages 100 54. 6 45.4 28. 9 4. 2 12. 3 Under 15 years 100 83. 5 16. 5 14. 8 1.0 0. 7 15-44 years 100 54. 8 45.2 34.2 & 8 7.2 45-64 years 100 29. 7 70. 3 42. 7 7. 8 19. 8 65 years and over 100 13.3 86. 7 26. 9 8. 5 51. 3

1 Major activity refers to ability to work, keep house, or engage in school or preschool activities. SOURCE: Unpublished data provided by the National Center for Health Statistics, Public Health Service, Dept. of Health, E d c a t o n , and Welfare.

Because the rural poor do not have easy access counterparts. And relatively more rural residents t'o appropriate health services early in the illness, than urban residents have never seen a physician. the result is much greater disability. Available Twice as many persons in families with incomes data on services provided by physicians and den- of $7,000 or more, compared with those in families tists clearly show that the poor are less likely than with less than $2,000 income, use the services of those with higher incomes to receive adequate specialists during a 1-year period. To take but one medical care. The lack of medical care is most example, about 20 percent of the children under acute among the children of the poor. 15 years of age were examined or treated by a Regardless of income; rural farm residents av- pediatrician during the year. This proportion was erage fewer physician visits per person-consulta- 9.6 percent for those in the lowest income group tion with a physician or services provided by a and 29.4 percent for those in families with incomes nurse or other person under the physician's super- of $7,000 or more ($).Moreover, children in higher vision-than rural -nonfarm and urban residents. income families and those living in metropolitan Rural residents, especially the children of the areas of the country are more likely tohave a rural poor, are less likely to have used the services routine physical examination than those in low of a physician during the year than their urban income families and those living outside metro-

62 politan areas and especially on farms. This lack surance protection is lowest for the rural poor on of medical care in the early ages is especially southern farms. tragic since a large proportion of the handicap- The amount of money people spend to maintain ping chronic conditions could be prevented or or regain their health varies markedly by the corrected by early detection and proper treatment amount of family income and size of the family. at appropriate ages in childhood. (See figure 3.) The combined impact )f family income and family The relationship between health care and income size on personal health expenditures becomes most is even more striking for dental care. The poor pronounced for the maintenance of health care of rarely see a dentist. One-fourth of the poor have the children. For example, expenditures for health never seen a dentist. Only 24 percent of the persons care of a; child living in a three-member family in families with less than $3,000 income, compared with an income of $7,000 or more are five times with 57 percent of those in families with $7,000 or greater than the amount spent for health care of more income, visit a dentist during the year. a child in a family with seven or more members Children suffer most in the lack of dental care. and an income of less than $2,000. Only one out of four children under 15 years of Regardless of income, as population. density de- age in families with incomes of less than $3,000 creases, the per capita expenditures for health has ever received any dental care, while three out care also decrease. The amount spent on healthcare of four children in the $7,000 or more income group is lowest among the low income rural farm fami- have visited a dentist at least once during a year. lies, and particularly the amount spent for the It is well known that most of the dental ills in health care of the very young children. This is adults can be traced to childhood neglect. Among consistent with the low level of medical and dental the rural poor this lack of dental care, especially care among rural farm families as well as the low among children, becomes very acute. Rural res- proportion of persons with health insurance cov- idents receive consistently less dental care than erage (4, p.14) their urban counterparts regardless of their economic status. Health Manpower and Facilities It is possible that because many people regard The scarcity of health manpower and facilities conditions needing dental care only as inconven- in the low income rural areas is alarming and is iences they often postpone visits to the dentist for not likely to be corrected overnight. Although examination and treatment. This may be par- about 30 percent of our population still lives in ticularly true of low income null families. Be- rural areas, only 12 percent of our physicians, 18 cause of the inaccessibility of dentists, and in an percent of our nurst.,1, 14 percent of our pharma- attempt to avoid dental expense, they often delay cists, 8 percent of our pediatricians, and less than going to a dentist until they are in pain or have 4. percent of our psychiatrists are located in rural other acute discomfort. The results are predictable : areas (5). among those who go to a dentist, the lower their Because of continued popUlation growth, ad- income, the more likely that the visit includes, ex- vances in medical knowledge, and overall improve- tractions. For the poor, dental care when it. occurs ments in the opportunities of the people, the de- is curative rather than preventive (3). mand for health services and, therefore, for health Although threA-fOurths of the people in the personnel to provide the services, will continue to United States have some kind of health insurance increase. Existing shortages of doctors, dentists, coverage to protect them against the cost of medi- nurses, and other health personnel are likely to cal care, unfortunately the poor who neecl it most last for some time. Shortages of hospital beds and do not have such protection: About one-third of the persons in families with incomes of less than high quality extended care .facilitiessuch as $2,000 have health insurance compared with nine - nursing homes and other homes for the aged, tenths of the persons with incomes of $10,000 or chronic disease hospitals, and geriatric hospitals more (fig. 4). Regardless of income, the rate of alsoare not likely to be corrected in a short time. insurance coverage is lowest for rural farm res- Needless to say, the strain will be felt most in rural idents, a fact which partially reflects differences areas of the nation. in patterns of employment between urban and Health personnel tend to concentrate in metro- rural areas. The proportion of persons with in- politan areas and to specialize. The number of

433 Figure 3. Percent of persons under 17yews G: age who had a routine physical examination in the 12 month period July 1962-June 1963

PERCENT 60

SIVSANNIONN1RM FARM UNDER $2000-$4000-$7000- $10,000+ $2000 3999 6999 9999 OUTSIDE SMSA* RESIDENCE FAMILY INCOME *SMSA: Standard. Metropolitan Statistical Areas ,Source: National Center for Health Statistics: Physician Visits. United States, July 1963- June 1964. " Vital and Health Statistics" PHS Pub. No. 1000-Series 10-No. 19. Figure 4. Persons with hospital insurance coverage by family income and residence, July 1962-June 1963

PERCENT OF PERSONS 100

89.6

60 / IeI. /1

40 38.6 URPAN

30.24/#./ =II NMI ONII RURAL NONFARM 25.9 1111111101 OMB RURAL FARM 20

$2,000 $4,000 $7,000 $10,000 FAMILY INCOME

Source: Unpublished data provided by the National Center for Health Statistics, Public Health Service,-Dept. of Health, Education, and Welfare.

65 physicians per 100,000 population is 53 in isolated Many of these patients are elderly, and suffer rural areas compared with 195 in large metropoli- from physical illness which results in psychiatric tan centers (fig. 5).The isolated counties are con- disorders. Often when these physical illnesses re- spicuously lacking in specialists and physicians ceive appropriate medical or surgical treatment, employed by hospitals and industry. Hence, the the psychiatric disorder disappears. continuing decline in the ratio of general practi- In recent years mental deficiencies, psychoses, tioners to population during the last decade be- and neuroses are some of the important disorders comes more critical for rural areas than urban be- for which the Federal Government has assumed cause rural people depend on generalpractitioners financial responsibility. Federal funds have stimu- more than on specialists. lated the assessment of mental health resources Despite an increase in the number of dentists, and needs of each State and the construction and the ratio of dentists to population has declined initial staffing of community mental health cen- during the past decade (fig. 6.) The ratio of den- ters. In a variety of ways treatment for the men- tists to population ranges from 69 per 100,000 per- tally ill is being brought back into the mainstream sons in large metropolitan areas to only 27 in the of community-based health services. With modern isolated rural areas. The nurse-population ratio drug treatments it is often unnecessary for a ranges from over 300 per 100,000 persons in urban patient to remain in isolated hospitals for long centers to 126 per 100,000 in the isolated rural areas periods. As a result, community mental health of the country (6). programs financed largely by Federal and State In recent years the operation of the Federal- governments have spread across the nation. State hospital construction program under the Outpatient psychiatric clinics for rural children Hill-Burton Act of 1946 has increased the number and youth are often the only mental health re- of hospitals in rural areas. However, with the source available in rural areas. In 1961 only 4 rapid population growth the ratio of the number percent of clinics serving children and youth in of beds in general hospitals to the nation's popu- the nation were located in rural areas. The 35 lation has increased very little. States without any rural clinics had around 65 Although quality of hospital care cannot be percent of the rural children. Rural clinics pro- measured solely by the number of beds, we do vided only 1.5 percent of the total clinic man- know that the size of the hospital to some extent hours of service per week. More of the rural clinics reflects the services available., The larger hospitals are operated on a part-timebasis and have smaller are better staffed with technical personni. and staff than urban clinics. These data are not sur- specialists and are generally better equipped. But prising considering the very heavy concentration rural people have to depend largely on the smaller of psychiatrists in the large metropolitan areas hospitals. In these small hospitals in the outlying (8). areas, free organized outpatient departments are The more affluent rural residents can and often seldom found. do obtain medical services in the hospitals in dis- Historically, the States have had responsibility tant cities. However, distance continues to be a for the care of the mentally ill and the mentally problem for the rural poor who lack the ready retarded. However, mental hospital standards vary means of transportation, financial resources, and from State to State. In each of the four most the medical awareness needed to obtain medical urbanized States the ratio of mental hospital beds and surgical services in the large city hospitals. "acceptable" to the State supervising agency ex- To make matters worse for the poor living in ceeds 30 per 1,000 population. In the four most the isolated rural areas of the country, services rural States, this ratio is lower than 3 per 1,000. have become increasingly centralized so that avail- The staffing problems in these hospitals are even ability of transportation and of time to take ad- more acute. The result is that senile and other vantage of these services becomes an additional psychotic patients from rural areas usually end up problem. Dispersion of hospitals and clinics is nec- in seriously substandard facilities(7). Often essary. However, in rural areas population density patients remain in mental hospitals because of a is not high enough to make feasible the operation lack of extended care facilities in the community. of well-staffed hospitals.

66 Figure 5.Urban-ruralldifferences in physidan supply, 1962

ACTIVE NON-FEDERAL M.D.'S PER 100,000 POPULATION 0 50 100 150 200

GREATER METROPOLITAN

LESSER METROPOLITAN

ox-v x--.1-#4 N ::: ADJACENT TO S.4 V.S. S : : . : : : METROPOLITAN 4.4 6:6:. .:4.4 . ....4 0 Sk- .4 : : : : :

;*-"' W;;c1 ...... ISOLATED 4 . :, 4*. x e. .. N s' 1.0 ..,. GP'S SEMIRURAL .: .: :.. i t 4.. 4 - kt.4 I tAtt4..N & SPECIALISTS HOSPITAL ISOLATED Ral OTHER RURAL

INNIk

1Counties within standard metropolitan statistical areas, asdefined by the Bureau of the Budget, are here classified as greater metropolitan(if they are part of a SMSA of 1 million or more population) or lesser metropolitan(SMSA population of 50,000 to 1 million). Adjacent counties are counties that are not themselves metropolitan but are contiguous to metropolitan counties. All othercounties are classified as isolated; semirural counties contain anincorporated place of 2,5000 or more population, rural countiesdo not. Source: Health Manpower Source Book, Section 18, U.S.Department of Health, Education, and Welfare. Public Health Service, Washington, D.C. 67 276-696 0-67-----6 Figure 6.Urban-rural-idifferencesin dentist supply, 1962

NON-FEDERAL DENTISTS PER 100,000POPULATION 0 20 40 60 :80

GREATER METROPOLITAN

LESSER METROPOLITAN

ADJACENT TO METROPOLITAN

ISOLATED SEMI RURAL

ISOLATED RURAL

1/Countieswithin standard metropolitan statistical areas, asdefined by the Bureau of the Budget, are here classified asgreater metropolitan (if they are part of a SMSA of 1 million or more population) or lesser metropolitan(SMSA population of 50,000 to 1 million). Adjacent counties are countiesthat are not themselves metropolitan but are contiguous to metropolitan counties. All othercounties are classified as isolated; semirural counties contain an incorporatedplace of 2,500 or more population, counties do not. Source: Health Manpower Source Book, Section 18, U.S.Department of Health, Education, and Welfare. Public Health Service, Washington, D.C. 68 Recommendations The Convaission reconvinend8 Federal resources have been devoted to a wide 2, That Federal funds available under the variety of programs to increase the supply of med- Health Professions' Educational Assistance ical resources. The Public Health Service Act pro- Act be used much more extensively to construct vides for traineeships for professional nurses, medical and dental schools and to encourage grants for graduate training in public health, and innovations in education and training which grants for training of personnel for State and local promote the efficient practice of medicine. health work. The Health Professions' Educational The curricuhun of medical and dental schools, Assistance Act of 1963 and its amendments au- especially in rural States, should include a course thorize grants for the construction of teaching of advanced clinical experience in a field setting. facilities for medical, dental, and other health pro- Such a requirement will provide an opportunity fessional schools, and grants to improve the qual- for a rural type of medical and dental experience ity of health professional education. The 1966 not obtainable in the metropolitan area in which amendments to this act encourage physicians, den- the college is usually situated. tists, and optometrists to practice in poor rural It is obvious that the increase in the demand for areas by forgiving up to 100 percent of their Fed- physicians and dentists will far exceed the increase eral educational loans. The Allied Health Person- in the supply unless ways are devised to use physi- nel Training Act of 1966 is designed to augment cians more efficiently. This need is very acute in allied health manpower resources. The act author- child health. If we simply continue present izes construction grants to teaching facilities, methods of providing health service, it would be grants to improve curriculum, and project grants almost impossible to assure comprehensive care for to develop new teaching methods and to spur the all the children of the poor. However, many of the development of new types of health personnel. tasks now performed by physicians could be han- In addition to Federal aid, State and local ef dled by trained assistants, supervised by physi- forts to improve the supply of rural physicians cians. The use of physicians' assistants would re- have taken many forms, ranging from offering duce both the number of additional doctors needed rent-free modern office facilities to physicians to and the cost of providing care. full financial support to medical students who will set up practice in rural areas. The Commission recommends- In spite of these and other efforts the shortage of health resources in rural areas persists. Imme- 3. That a corps of subprofessional health per- diate attenion should 'be given to devising ways of sonnel working under the supervision of doc- augmenting the supply of health resources in rural tors and dentists be developed and trained. areas. There are two approaches to meeting this Programs for the training of subprofessionals problem, and both need to be taken into account should be established in local areas and coordi- (1) Add to the supply by increasing medical facil- nated with the medical colleges in the State. In

). itie,s and training more health manpower, and (2) some cases and for certain categories of personnel, increase the efficiency with which health resources commmunity colleges should establish programs to aro used. provide associate degrees in various subprofessional specialties. Other training to perform many The Commission reconvmencls- tasks might be provided for aids with less than 1. That cancellation of educational loans in high school education. Federally supported health return for service in rural areas under the care programs should be used to provide training Health Professions' Educational Assistance to the assistants, as well as to exert leadership in Act be extended to cover a wider variety of pro- the use of this type of personnel. fessional and subprofessional health manpower than is now covered. The Commission reconumenda Every attempt should be made to encourage 4. That a National Rural Health Corps of more students to specialize in the medical profes- trained volunteer health personnel be estab- sions. High school counseling should be strength- lished to work in rural areas with serious health ened in this area. needs. These volunteers may be physicians, dentists, assure that the totalpopulation can obtain ade- nurses, medical and nursingaids, or other specified quate medical care. health workers. The utilization of Health Corps volunteers in rural areas should be within the The 00,714711,88i016 recommends-- framework of comprehensive local health care pro 7. That community health centers tiedinto a grams approved by theState department of health. regional system of hospital and specialized The Comm/1;84m reconmends- services be developed in rural areas. 5. That the Federal Government encourage Comprehensive outpatient and routine inpatient, and promote the development of group prac- preventive, curative, and rehabilitative services tices, especially prepaid-croup practices in should be available to all Such centers shouldin- rural areas, and assist in establishing facilities clude as their essential components a program of to be used for this purpose. comprehensive maternal and child health care as well as a program of early detection and treatment Group practice enables the doctor to work a of chronic conditions. regulated work week and be relieved of the pres- These centers should be flexible enough to meet sures of -a rural physician practicing onhis own. the needs of the communities. In the isolated rural He gains the professional stimulus of close profes- areas, such centers could takethe form of mobile sional contact with his partners and may also be units traveling on a regular basis within specific. free to leave temporarily for study with the as- geographic areas in order to provide continuing surance that his patients will be cared for.Groups health care over time to all persons within the area. of doctors working tog-ether can make more ef- This would enable the use of regional hospital- ficient use of equipment, auxiliary personnel, and based medical staff supplemented by health work- consultation than doctors practicing alone. ers, medical and dental assistants,and subprofes- Often elderly persons in rural areas suffering sional aids from the local community. froth chronic physical or mental illness are placed Arrangements should be made with the regional in institutions far away from home for long pe- hospital to provide backup referral and consulta- riods in isolation from their family and corn- tive services for patients who present unusual diag- mu/ay. Such persons could be taken care of more nostic or highly specialized problems and to pro- effectively and economically in their own homes vide consultation and technical assistance in by a visiting nurse or a health aid under medical program planning and appropriate use ofexisting supervision. and new categories of health personnel. Wherever The Commis 8ion recommends possible, full advantage should be taken of university hospitals and their staff. 6. That high quality home care programs be developed toserve the elderly and the chroni- TA 00712MAgOltrecommends- cally ill in rural areas. 8. That a national program 'of comprehensive These programs should operate through a cen- dental care for children be developed with spe- trally administered team approach under medical cial provisions to meet the needs of the poor in directiOn, consisting of the physician, public health rural areas. nurse, social workers, and health aids from the local community. In the initial years, this program should, be Policies and programs to increase the number of established on a pilot basis in selected areas of physicians have as their primary purpose an in- severe needs. Care should be provided on anincre- crease in the quantity of health services, not mental basis, covering children of first grade age merely an increase in the number of doctors. An only in the initial year and adding a grade a year. increased supply of manpower would not by itself The schools should provide a setting in which con- make such services more available to those who tinuous access to the largest number of children is need it, unless accompanied by programs to enable assured and the most productive use of dental man- persons to obtain such services. We therefore need power is achieved. This service should beincorpo- to organize a system of health-services which will rated with the functions of the community health centers, when these are established. Mobile dental analysis of electrocardiograms, rapid recall of in- units (such as those used by the Indian health pro- dividual health records and the like should be gram) should be used to take dental services to the explored. isolated rural areas. The cities of America are far ahead of rural As part of such a program of comprehensive areas in providingmedical care. One of the several dental care a, program of fluoridation of commu reasons is that publichealth departments in cities nity water supplies should be offered. Federal have been better financed than those in rural areas, grants for installation, operation, and maintenance better staffed, better equipped, and more alert to of equipment should be available to communities the needs of the people. In recent years some of which decide to fluoridate their water supply. Such these agencies have expanded their activities to a program can reduce dentaldisease in the popu- include such programs as dental services for chil- lation served by more than 50 percent at minimum dren, prevention of accidental injuries, promo- annual expense, thus also reducing dental needs tion of mental health, and early detection of and costs of dental treatment in subsequent years. chronic conditions. County health departments in A. program of comprehensive dental care in a com- rural areas, as a rule, have neither, the staff nor the munity which has had a. fluoridated water supply facilities to meet the needs of the poor. during the period in which the teeth "served" were The Commission recommends-- being formed will cost approximately $13 per child per year. The cost is approximately$30 per child 11. That public health agencies in rural coun- per year in a community withoutfluoridated water. ties and multicounty districts be strengthened, Fluoridation costs per year would be approxi- their role in the community be expanded,and mately 12 cents per capita, or .71 cents per child the services offered be updated to meetthe cur- served. (9) rent needs of the people in keepingwith na,- tIonal health goals. The C ommissionrecommends- it is not enough simply to develop facilitiesand 9. That maximum use be made of available services for adequate health care unless alongwith Federal funds to provide adequate care for these goes the assurance that all persons canalso mental illness and mental retardation to all afford to use them. Many peopleboth the poor through such programs as subsidized multi- and the not-so-poorface financialruin. from county mental health centers. medical bills because of inadequate or no protection against the cost of medical care. Prolonged These services and facilities should be tied in illness and hospitalization can drag mostof us with the regional health centers in terms of orga- into poverty. And, as indicated earlier in thechap- nization, staffing and services offered. ter, this is especially true of ruralresidents, for have The ommission recommends - they are less likely than urban residents to adequate provisions for medical care. 10. That modern techniques of communica- Over the years the Federal Government has as- tion and transportation be effectively used to sumed increasing responsibility for themedical serve the isolated rural areas and tobring the care of specificcategories of persons based on need. rural physician into close association with the The principle of social insurance for health care regional health centers. was accepted forthe first time by the. United States with the passage of the 1965Medicare The use of helicopters, small planes, and two- amendment to the Social Security Act which pro- way radios for emergency careservice as well as vides health insurance for the aged.Medicare, a for regular medical service in the outlying areas federally administered program, offers two kinds should be extended. Moreover, the increasing po- of benefits for persons aged 65 orolder: hospital tential of computerized communication systems insurance (for hospitalization and related care) could be of crucial importance in the organization which is universal for all aged persons,and sup- and delivery of health care in outlying areas. The plementary medical insurance (forphysicians' use of closed-circuit television,telephonic trans- services and some other medical services)which is mission of electrocardiogram tracings, electronic avoluntary program. Benefitsare uniform 71 throughout the nation. Undoubtedly, thisprogram States had not yet implemented theprogram, and has been a boon to the rural aged and has corrected a large proportion of these have large low income many of the deficiencies of voluntary health insur- rural populations. The economic potential ofthese ance in rural areas. However, this program still States being low, therange of optional services has limitations, especiallyas it affects the rural offered by the participating low incomeStates is residents. It still is hemmed in with time limits, narrower than in the more affluent States. Often deductibles, and problems of enrollment in the these optional servicesare offered only to public medical insurance benefits of theprogram. More- assistance recipients. The incomelevels defining over, it does not cover persons under ayears the medically needyare also lower in these States. of age. Moreover, the 1967 House amendmentsto the It was hoped that Title XIX of the amendment, act, if passed, will drastically reduce theincome commonly known as the Medicaidprogram, would ceiling. in defining the "medically needy"for pur- solve the problem. Medicaid isa Federal-State proposes of Federal participation in theprogram gram designed to provide medical assistance to all Federal sharing will not be available for families needy and "medically needy"persons as defined whose income exceeds 133y3 percent of the high- by each State. The objectives of this Federal- est amount ordinarily paid toa family of the State program are :(1) To provide medicalas- same size in the form of money payments under sistance for all persons whoare receiving financial the AFDC program. assistance, or who would be eligible for suchas- sistance, under federally aided public assistance The Commission recommends- programs, and all persons' under age 21 who, ex- 12. That the Federal .Government immedi- cept for a State requirement, would be eligible for ately develop a comprehensiveprogram to meet assistance through theprogram of aid to families, the medical care needs of rural America. with dependent children (this represents the minimum coverage called for under this program for The Commission realizes that the recommenda- purposes of Federal participation) ; (2) to per- tions made thus far will take time to put into ef- mit States at their option to provide medicalaS- fect. The health needs of the ruralpoor, however, sistance to those groups of medically needy people are acute. Thousands of these people need help who would qualify under the public assistance today. They need drugs, immunization, diagnostic categories if theywere in sufficient financial need; evaluation, treatment, and correctivesurgerya and (3) if the States choose, to provide medical wide range of medical services. care to all medically needy children under age 21, even if they cannot meet the eligibility require- The Commission therefore recommends- ments for financial assistance under public assist- 13. That the Federal Government act at the ance programs. The remaining needy persons earliest possible moment to support and admin- 21 -64 years old who cannot qualify under the ister programs which will 'provide adequate federally aided medical assistanceprogram may medical treatment for low income residents of be included in theprogram at the States' expense. rural areas. There are growing indications, however, that in many instances only those persons on publicas- Here are some ways this recommendationcan sistance qualify for medical assistance under this be carried out program. Moreover, criteria for eligibility and the (a) Federal funds should be provided toem- benefits offered in addition to the minimumre- ploy local private physicians toserve for one or quirements are not uniformacross the nation. Very two days a week in the rural areas to provide the few States have incorporated the originallycon- essentials of medical care. The U.S. Public Health ceived idea of medicaid into theirprograms. And Service could place on an emergency basisone or there are difficulties in financing theprogram, get- two doctors, nurses, and appropriate paramedical ting the cooperation of doctors, and untangling personnel in each county to work with the rural other redtape attached to the legislation. The poor. financial problems are not surprising when only (b) A federally financedprogram. of early de- those in greatest need participate;per patient tection and treatment of congenital and other costs obviously will be high. As of July 1967,24 handicapping disorders in children should be 72 launched immediately in these health-depressed The Commission recommends- rural areas. (c) The maternal and infant care project grants 14. That the Migrant Health Act be renewed child health project in 1968 with sufficient funds to expand the pro- as- well as the comprehensive and serv- grantA for 'school age and pre8chool children au- gram in terms of geographic coverage thorized under Title V of the Social Security Act ices offered. were -specifically developed to servethe poor in In order to insure continuity of services the re- areas with concentration of lowincome families. newed legislation should include a broader defini- These projects are designed to reach out into the tion of migrant worker to cover the entire migrant community for early detection, preventive health community, especially in the home-base areas. Con- services, and Medical care for mothers and chil- certed efforts to improve interarea communication dren among a population most acquainted only and coordination should be made, and community with care in emergencies. Limitation in funds has education and inservice orientation for health restricted the area covered. These projects should workers should be intensified. be continued beyond their 5-year period of authorization and appropriations for these projects Indian Health should be immediately and substantially inereassed to enable rapid expansion of these projects in Another distinct rural population group for rural areas of dire need. which the Federal Government has taken responsi- Attention must be given to meet the nutritional bility is the Indian American. The Indian Ameri- needs of these children. Recommendations to cans are predominantly ruralpeople, desperately satisfy these needs are offered in an other section poor, and concentrated on Indianreservations in of this report. 23 States which have Federal Indian reservations. In 1965, approximately 381,000 Indians, including Migrant Health Alaskan natives, depended in varying degrees upon the Indian health programfor health serv- The health problems of migratory farmworkers ices. They are widely dispersed on about 250 Fed- and their families are an extreme case of the prob- eral Indian reservations in various colonies and lems encountered by the rural poor across the adjacent communities and in several hundred nation. Health services for migratory farm fam- villages in Alaska. ilies have been almost nonexistent. Being non- Despite the various problems in providing residents in most of the areas where they do health services to the Indian Americans, consider- seasonal work, these people are usually ineligible able progress has been made in improving their for medical assistance from local public hospitals health during the past decade. Indicators of im- or ,welfare departments. provement are the reduction in mortality from In 1962 the Migrant Health Act was enacted communicable diseases, especially tuberculosis, and authorizing grants by the U.S. Public Health Serv- lowering of infant death rates. ice to State and local agencies for health services to However, mortality from communicable diseases migrants. Assistance offered by the Public Health and deaths among babies after the first month of Service under this legislation has stimulated some life are still far greater than those in the general population. Most of these infant deaths are from communities to adjust their local health services in respiratory conditions, gastroenteritis, and diar- order to extend them to the seasonal farm families. rheaswhich arefrequentlyassociatedwith In fact, the act authorizes general ambulatory the home environmentinadequate sanitation, medical care instead of the restricted preventive crowded housing, lack of safe water supplies, and services conventionally offered by rural county limited facilities for practicing modern hygiene. health departments. Nearly one-sixth of all Indian deaths in a year are Although these projects have improved the attributable to tuberculosis, and gastroenteric and health care of many migrant families, the pro- other infectious diseases, reflecting, in part at least, gram's impact, relative to the problem, is still ex- grossly substandard living conditions, poor nu- tremely inadequate. The legislative authority for trition, rigorous climate, and inadequate sanita- the migrant health program expires in June 1968. tion.Nonetheless, the infectious diseases are

78 slowly being displaced by degenerative conditions tation Facilities Construction Act. The lack of and noninfectious diseases. Leading causes of safe water and the inadequacy or absence of fa- death today are accidents first. (156 per 100,000) cilities for human waste and refuse disposal con- and diseases of the heart second (142 per 100,000). tribute to the rapid and widespread movement of Another measure of progress during the past communicable diseases. By the end of 1964, basic decade has been in the expansion and improve- sanitation facilities were made available to over ment in hospital and clinic facilities. By 1965, the 24,000 Indian and Alaskan native families in more Indian health program was operating 49 hospitals, than 350 communities. 30 health centers with full-time staff, 16 school This level of accomplishments in sanitation health centers, and many field health stations. In projects however, represents only 29 percent of the addition, contractual arrangements were in effect total effort required to provide beneficiary families with hundreds of community hospitals to provide with essential water and waste-disposal facilities. inpatient services and extended care to beneficiaries At the present regular budget level it will take where no public health service facility is available about 15 more years to meet the current estimated and for emergency services. need for such facilities. Comprehensive curative, preventive, and rehabilitative services are piovided at all facilities, and The Commission recommends include public health nursing, maternal and child health care, dentistry, nutrition, sanitation, and 15. That the Federal Government act with health education. Indians are trained to serve in urgency to bring the health of our Indian peo- both professional and nonprofessional positions ple up to the national level. in the health program, thus relieving to some extent the problems of shortages of staff. Indian par- Special attention and funds should be provided ticipation is encouraged in all phases of the health for environmental health. The program of train- program. ing Indians to serve in professional and nonpro- Real progress in environmental health services fessional positions in health programs should be began. only in 1959 with the passage of the Sani- expanded. References (1) U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- (5)C. N. THEODORE and G. E. SUTTER. DISTRIBUTION OF FARE, WELFARE ADMINISTRATION, CHILDREN'S BU- PHYSICIANS, HOSPITALS AND HOSPITAL BEDS. Amer- REAU. INFANT MORTALITY : A CHALLENGE TO THE ican Medical Assoc., 1966. NATION. (6)U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- ARTHUR J. LESSER and ELEANOR P. HUNT. MATERNAL FARE. HEALTH MANPOWER SOURCE BOOK, SECTION 19, (2) 1962, and HEALTH RESOURCES STATISTICS, 1965. AND CHILD HEALTH PROGRAMS AND RURAL AREAS. (r)MILTON I. ROEMER and DANIEL M. ANZEL. HEALTH (Unpublished report prepared for the National Ad- NEEDS AND SERVICES OF THE RURAL POOR. (Unpub- visory Commission on Rural Poverty.) lished report prepared for the National Advisory (3)NATIONAL CENTER FOR HEALTH STATISTICS. MEDICAL Commission on Rural Poverty.) CARE, HEALTH STATUS, AND FAMILY INCOME: *UNITED (8)CAROL L. MCCARTY and BEATRICE M. ROSEN. MENTAL STATES. Public Health Service Pub. No. 100-Series HEALTH AND MENTAL HEALTH SERVICES IN RURAL 10-No. 9, p. 29. COMMUNITIES.In"Rural Youth in Crisis : Facts, Myths, and Social Change," U.S. Dept. Health, Edu- (4)NATIONAL CENTER FOR HEALTH STATISTICS. PERSONAL cation, and Welfare. HEALTH EXPENSES : PER CAPITA ANNUAL EXPENSES, (9)U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- UNITED STATES. JULY-DECEMBER 1962. Public Health FARE. MATERNAL AND CHILD HEALTH CARE PRO. Service Pub. No. 1000-Series 10-No. 27. GRAMS. October 1966.

74 Family Planning Program. s President Johnson in his special message to from poverty. Without family planning, the possi- Congress on health and education in March 1966 bility of reducing poverty in rural America (or in stated: urban America, for that matter), becomes more

... We have agrowing concern to foster the integrity remote. The success`uccess of 'Programs dealing with em- of the family and the opportunity for each child. It is ployment or education or health in rural areas essential that all families have access to information and depends in considerable degree on the ability of services that will allow freedom to choose the number the poor to control the size of their families. and spacing of their children within the dictates of individual conscience. ... A Closer Look at the Problem Relatively few rural families have access to the information and medical service they need for From the health point of view the characteristics family planning. Moreover, the poorest rural of the rural poor are clear and grim. Not only do families, who need the information and medical the rural poor produce far more children than service most, have the least opportunity to get it. they can afford, but they have a higher rate of So rural America has more than its share of stillbirths, premature births, and illnesses and largeand poorfamilies. deaths among both infants and mothers. Figures on births in rural America indicate the In recent years the birth rate for the nation as extent of the problem. Among white rural farm a whole has been declining and thetraditional families with low incomes (under $2,000), the rural-urban fertility differences have been narrow- average number of births per woman is 48 percent ing. And yet the rural poor, especially the non- higher than for the nation as a whole. Among white farm families in the South, continue to re- nonwhites the average is 156 percent higher. And produce at rates little lower than those found in these figures are averages not the extremes (1) .1 some countries of the Far East. In these areasof A vicious circle of poverty and fertility is at excessive fertility, not surprisingly, the number work. Because these people are poor, they do not of dependent children is an acute problem, ac- know how to plan their families nor do they know companied by increased migration of the wage where to turn for help in planning. Because they earners to the cityaggravatingdistress in both do not limit the size of their families, the expense rural and urban areas. of raising unwanted children on inadequate in- The importance of excessive fertility among the comes drives them deeper into poverty. The results poor lies not so much inits effect on the national are families without hope and children without birth rate-as in the accumulation of difficultie:: it future.2 imposes on the poor themselves. Unwanted preg- Given the opportunity to plan their families, nancies can, and often do, wreck any chance for the rural poor at least have a chance of emerging a better life foreither parents or children. The 1 References, indicated by italic numbers in parentheses, problem of educating the children grows harder are listed at the end of this chapter. and the drain on low incomes becomes heavier. 2 Katherine Oettinger, Deputy Assistant Secretary for Public support becomes more and more unavoid- Family Planning and Population, Department of Health, Education, and Welfare, declaring that family planning able. Children, inevitably, are emotionally and services should be available to all, in her speech The Most culturally deprived. They add to the total of school Profound Challenge goes on to say : "...It is the families dropouts. The resulting stress and disorganiza- of tha poor who too long have suffered spiritual dejection tion of family life are often too much forthe and demoralization after bearing successive babies without hope of these children being able to achieve their full father. In thousands of cases he gives up and de- potential or breaking the cycle of poverty. .. ." serts the family. The areas of excessive fertility are also the areas Adequate prenatal and maternity care, although of high infant mortality (see ch. 6). The wide dis- useful in its own right, does not substitute for parities in infant death rates within the United family planning information and service. in a States indicate that many infants are dying need- study of still births and infant deaths among the lessly. The high rate of premature births, a lack medically indigent in the New Orleans area, al- of medical service, and the inability of the family most three-fourths of the deaths could not have to provide adequate food, clothing, and housing been prevented by ideal prenatal care, better ob- also contribute to high infant mortality. stetric management, or better medical management In recent years the proportion of premature of the terminal illness. The principal reason for births has increased, and this increase is due al- the failure to prevent these deaths was that the most entirely .to the increase in premature births mothers were suffering from serious health prob- among nonwhites. Premature births often result lems before their last pregnancy.4 from childbearing at very early or late periods of Infant mortality is a gross measure of infant life, shorter intervals between births, and a larger health of the population. High mortality is also a number of children born to a woman. These con- symptom of a high incidence of illness and phys- ditions are more prevalent among those who do ical deficiencies in infants. Prematurity, a factor not receive prenatal care. Moreover, a large pro- in high infant mortality, is closely related to portion of babies born prematurely do not survive. mental retardation, brain damage, and congenital Three of every five infaiits who die during the malformation. Both infant mortality rates and' first 4 weeks of life are born prematurely. mental retardation rates are substantially higher Prematurity is also more prevalent among il- than average for fourth and subsequent births. legitimate births. Illegitimate births have increased These infants account for half of all yearly infant nationally since 1940 and are concentrated 'among deaths and a larger proportion of infants born nonwhites (fig. 7). The largest proportion of il- mentally retarded. legitimate births occurs to women under 20 years Kesseler of the World Health Organization de- of age. Chances are that these women have had no, scribes the relationship between health and family or hardly any, prenatal care. size (3) : The effects of illegitimacy on both mother and Essentially, the reproductive wastage which high in- child obviously are serious. The mother's oppor- fant mortality produces promotes patterns of reproduc- tion which further compound hazards of health and tunities in life are drastically reduced. Her edu- survival of mother, newborns and infants. These patterns cation is cut off, and her employment opportunities are characterized by high natality, and include child- are severely limited. There is a high probability bearing beginning at too early ages, in too rapid succession the child will grow up in an unstable family en- and in too great number. Moreover, high fertility with its inherent demands on the mother both during pregnancy vironment, with irregular maternal attention, suf- and after birth, tends further to decrease infant care and fering the lack of a father figure, and with lim- thus perpetuates environmental risks. ... ited economic resources. Kessler's diagnosis applies particularly to the Induced abortions are related to unwanted preg- low income families of rural America. They are nancies, and they often lead to severe illness or the people who desperately need information and death of the woman. Although no exact figures medical help in order to plan their familiesand are, available, unofficial estimates of illegal abor- they are the last to get it. Yet family planning is tion range up to a million or even more each year one part of health care which for the least expendi- that is, up to one for every four live births (2, p. ture can do most to prevent the wastage and trag- III, 45).An estimated 40 percent of all deaths to edy of unwanted pregnancies. The cost-effective- women associated with complication of pregnancy or childbirth have been related to induced ness of family planning, according to studies conducted in the Department of Health, Educa- abortions.3 tion, and Welfare, is greater than that of any other health measure available (2, p.IV, 12). *Testimony of J. D. Beasley before the Senate Govern- ment Operations Subcommittee on Foreign Aid Expendi- tures, 1960, to support H.R. 5710. 4J. D. Beasley, see footnote 3.

76 Figure 7, Ratio of illegitimate births per 1,000 live bits, United States, 1940-1965

ILLEGITIMACY RATIOS

.1 PER 1,000 LIVE BIRTHS 300

263.2

e#0 .0 a 200 11

/,` #. #.11.NONWHITE 168.3%"

J 100

39.6

19.5 WHITE

0 I l I I 1940 1950 1960 YEARS

Source: Vital Statistics of the United States, 1965, Vol. I, Natality, p. 1-24. National Center for Health Statistics, Public Health Service, Washington, D.C.

77 Family Size Preference and Unwanted almost 45 percent of the unwanted 'pregnancies Pregnancy occurred before the couple began using any method of family planning; an additional 31 percent were The notion is widespread, especially among more due to irregular use (6).Preliminary data from affluent Americans, that either the poor want more the National Fertility Survey conducted in 1965 and more children, or just don't care how many indicate that the proportion of couples who have they have. This notion has long been a chief ob- ever usedor expect to usecontraception is stacle to any program for providing family plan- lowest among nonwhites living on g, farm.° ning services under medical supervision to the Family planning techniques have been signifi- poor and the medically indigent. cantly advanced in recent years, especially with Common as this notion may be, it is no longer the introduction of the various oral contraceptives true, if it ever was. The poor do tend to have more (pill), and the intrauterine devices (IUD). These children than people with adequate incomes, but techniques may bring effective birth control meth- the evidence is overwhelming that many of the ods within the means of poor familie.s. The pill is children born to the poor are unwanted. one of the methods of contraception most widely More than 70 percent of the patients receiving used by American couples. Its use has increased public health maternity services in Florida did every year at an increasing rate (7). Oral contra- not want any more children, and more than 90 ceptives are accepted enthusiastically by the poor percent of those desiring to have additional chil- when they have adequate information and services. dren preferred to wait 2 or more years for the next The pill has been largely responsible for such baby (4). Darity (5) likewise found that the success and spread as there has been of family women in the Mecklenburg birth .control clinic in planning programs among the rural poor. North Carolina desired one to two children but Although the pill has become one of the major had an average of four to five. means of regulating fertility, its use is concen- National studies of the growth of American trated among the younger and the better educated families show that the poor have more children not women. It has been adopted primarily by couples because they want them, but because they do not who would otherwise have used, or were formerly have the information and the resources to plan using, the more effective of other available meth- their families effectively according to their own ods. Differences related to education probably desires. reflect the greater awareness and adoption of new Most couples in the United States, rich or poor. techniques among the better educated. Among white or nonwhite, urban or rural, want two to women who have never heard of the pill, about 2 four children. And yet about 17 percent of all percent have some high school education, compared couples repo-ting in national surveys said their last child wts unwanted. Among nonwhites this with more than 14 percent who did not go beyond proportion is 31 percent. Among the less educated grade school.° These education-related differences (who are also likely to be poor) 32 percent of the probably also account for the lesser awareness in whites and 42 percent of the nonwhites saifi that rural areas where the level of education is gener- their last child was unwanted (fig. 8). The highest ally low. The proportion of women who have never proportion of couples with excess fertility, that heard of the pill is substantially higher among is, those whose last child was unwanted at: the time low income women and among women living on a of conception, was 48 percent for nonwhites who farm or with a farm background than among live on farms in the South or who have Southern higher income women and among those with no farm background (fig. 9).The white-nonwhite dif- farm background. This proportion is even higher ferences in fertility are largely accounted for by among nonwhite women.? the high fertility of the nonwhite couples who live in the rural South and those who have Southern 5 Based on unpublish6d data from the 1965 National farm origin (6). Fertility Survey provided by C. P. Westoff, Princeton The poor and less educated are less successful in University and N. B. Ryder, University of Wisconsin. preventing unwanted pregnancies partly because Based on a national survey conducted in 1965. See (8). Based on unpublished data from the 1965 National they use. ineffective methods irregularly. Among Fertility Survey provided by C. F. Westoff, Princeton women with no more than grade school eductition, University and N. B. Ryder, University of Wisconsin.

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: I Current Status of Family Planning to the obstacles that poor families have to sur- Programs mount in order to receive instruction_ s and services to regulate their fertility. In a broad sense family planning is a complete One wonders how many middle-class couples medical service which includes not only limitation who now practice birth control effectively would of family size but also child spacing and correc- continue their practice under the conditions im- tion of infertility. It further includes a complete posed on these low income families (10) medical examination of the woman, including a .. It is useful to recall the story of Sadie Sachs which Pap smear screening test for cancer. started Margaret Sanger on her work for birth control. Family planning services, as an integral part of As a public health nurse on New York's Lower East Side adequate medical care, have been routinely and in 1912, Mrs. Sanger had carefully nursed back to life Mrs. easily available to the well-to-do through the pri- Sachs, who was hemorrhaging after self-induced abortion. vate physician. The importance of equal opportu- When Mrs. Sachs finally recovered, she asked the doctor to tell her how to keep from becoming pregnant The doctor's nity for all families to have the freedom to choose immortal reply was : "Tell Jake to sleep on the root" the number of children they want and when they want them, regardless of income, color, or location Where family planning information and serv- of residence, is widely accepted today. ices under medical supervision have been offered to In practice, however, public and private family the rural poor by both nublic. and private pro- planning programs currently are serving only grams, participation has been high and the propor- about 10 to 12 percent of the more than 5 million tion of women continuing the service has remained medically dependent women who are potential high. In many of these families, a family planning patients for subsidized family planning services. program brings an aspect of modern medicine for This leaves roughly 90 percent without effective the first time access to modern family planning services. Only Some examples of successful'services are the pro- 6 percent of the rural women in need are currently grams in eastern Kentucky, in Mecklenburg County, N.C., and the programs recently estab- receiving subsidized family planning services (9). Most low income families have little, if any, lished in Lincoln Parish, La., and in rural counties faith in their own effectiveness and ability to con- of Alabama. Many of these programs started with trol the course of their live& Although these fami- volunteers and private contributions, have bene- lies do not want unusually large families, their fited by grants from 0E0 and from the Children's culture has accustomed them to frequent childbear- Brreau maternal and infant care project grants. ing, and they often htuve little knowledge of the Some of the programs in the rural Southern States fundamentals of procreation and about effective have been in operation for over two decades and methods of fertility regulation (101 11). They re- were started by State and local health departments gard the burden of numerous children with the as well as voluntary agencies. same fatalism and despair with which they face These programs have demonstrated both the de- their extreme poverty. If they can be made aware mand for, and the feasibility of, family planning that they do have freedom of choice in the size of services in rural areas. They have also shown how their family, the result may be an increase in both much can be done with little staff and funds A va- their economic well-being and their self-respect. riety of approaches have been used in these proj- The conditions under which the poor receive ects to suit the needs of the different communities medical care have a direct bearing on the avail- Using health teams, including physicians, nurses, ability of family planning services to them. A large fieldworkers, and subprofessional assistants, and proportion of low income women deliver their ba- providing transportation or using mobile units to bies in public hospitals or wards of private hospi- reach people where they live when it is n_ ot, feasible tals. Contraceptive services are not so routinely to establish a permanent clinic. and easily available to poor families through most However, without substantial governmental as- public hospitals, health departments, and welfare sistance, these programs are hardly sufficient to ageneies as they are to the middle class families meet the total need. through their private physicians. The attitudes Less than 1 percent of the amount currently ex- and behavior of the health professionals and the pended for, health by government agencies is physical arrangements of many public clinics add needed for a program of modern family planning services for the more than 5 million medically in- conscience and need. These programs should be digent women throughout the United States. This developed with special attention to rural. areas, family planning program would cost approxi-- reaching out to the people in their own neighbor- mately $100 million annually for medical services hood, using mobile units where needed, community and supplies, of which $42 million is needed in institutions, and subprofessional assistants and rural areas (9). State and local health agencies, fieldworkers from the local areas. especially those in predominantly rural States, At the present time very few hospitals in non- will need substantial Federal financial assistance metropolitan counties provide family planning for immediate massive expansion of family plan- service. Women are most interested in family planning program& ning alter they have just delivered a baby. Hos- In recent years, Federal agencies have an- pital-based clinics are -the most economic and nounced new policies in the area of-family plan - efficient mechanism for providing-family-planning. ring and various bills for family planning pro- service& In fact, hospitals that have introduced grams have been introduced in theCongress. such services in post-partum clinics have reported However, progress in implementing policies and a doubling of the rate of return for post-partum passing legislation has been slow. Given the wide- examination& spread desire on the part of the poor to regulate the size of their families, it is up to Federal agen- The COMIffli88i0171 recommends-- cieswith new legislation if necessaryto take the following three steps to attain the goals of an 2. That family planning services in post- adequate family planning program partum clinics be introduced in every hospital (1) Create an awareness among low income with an obstetric service. families of the possibility of choosing their family size and spacing their children. The local public health departments can play a (2) Provide the _means to enable the poor to critical role in identification of potential family have the number of children they want and when planning patients, in carrying out information they want them. programs, and in providing continuing care for (3) Make voluntary family planning services patients. The number of local health departments as readily available throughpublicly supported providing family planning service has increased programs as they are through private. in recent year& In rural areas, however, health In order to achieve these goals, it will take departments often have limited family plannin leadership by all levels of government in coopera- programs operating in only a few counties. tion with private groups. The Commission, reconvnwnds- The. Commission recominends- 3. That health departments expand family 1. That Federal funds be appropriated and planning programs with special attention to earmarked to establish greatly expanded public rural areas. Family planning information and and voluntary family planning programs for services should be included as an essential part those who would not othermise have access to of all maternal health services provided such service. Most of the existing family planning programs Funds should be made available to public agen- focus on the problem of family limitation and cies and institutions and to hospitals and other excess fertility. They tend to omit an integral part nonprofit organizationsto develop voluntary of the overall program, the man in the family. His family planning programs to serve low income attitude toward family planning may be a decisive familie& Such programs should include dissemination of factor. information and medical supervision to all indi- Another aspect of feitility regulation is adequate viduals who desire such information, assistance, spacing of births. When too many children come or supplies. Such programs should guarantee free- too soon, the economic strain on a poor familyis dom from coercion or pressures, and should pro- often overwhelming_ . Still another faetor is the vide a variety of methods suited to individual timing of the first birth. Often this factor is of

82. greater importance for the poor than prevention This would provide the general understanding of the 7th or 10th or 14th birth. that family planning is the new frontier of public health, and is a fundamental part of preventive The 0071071,498i012 recommends- medicine. It is a medically practicable, economically feasible, and generally acceptable approach 4. That family planning information and to several basic problems of modern society. The services be made available to persons before the mass media can be of special helpin stirring in- first child is born. terest among the people on family planning educa- Such information and services should be pro- tion and, the availability of family planning vided 0 both men and women. For example, such service. Radio, television, and the press show a information could be routinely provided at the growing interest in the subject. time of application for a marriage license. In There is need for much closer working relations States where 'a medical examination is required among the various professional workersin rural before marriage the physician can play an im- areas. Often the medically indigent in an areadeal portant role. with two or more sets of professionals who have only sporadic contacts with each other. Fre- The Commission recommends- quently, the social workers work against the family planning workers. Most social workers, and 5. That special programs be developed to pro- for that matter many health professionals, have vide social, health, and educational services to not been taught the importance of family plan- young boys and girls to reduce the incidenceof ning for helping families maintain their health as illegitimate births and of early marriages ne- well as their economic integrity. Social workers, cessitated by pregnancy. doctors, and other health professionals do not nor- Schools, churches, responsible parents, health mally receive instructions in family planning tech- officials, and physicians could all contribute to niques, counseling, or referral in the course of such programs. Steps should be taken to provide their' formal education. Their qualifications, en- such education in the public schools at the ele- thusiasm,- and attitudes towards their potential mentary and secondary levels and in other youth- clients are of crucial importance in the success of serving agencies. Dikussion should include the a family planning program. meaning of family planning in relation to family welfare and specific knowledge of methods of fam- The Commission recommends ily planning in its relation to responsible parenthood. 7. That Federal fun& be provided to facilitate basic training in family planning together No. The. Commission recommends with short-term. training of public health physi- & That information on child spacing and cians, public health nurses, social workers, ad- family planning services be made available:to ministrators, subprofessional assistants, and the public. fieldworkers. References

(1) U.S. BUREAU OF THE CENSUS. WOMEN BY NUMBER OF (5) W. DARITY. CONTRACEPTIVE EDUCATION, THE RELATIVE CHILDREN EVER BORN. 1960 U.S. Census of Popula- CULTURAL AND SOCIAL FACTORS RELATED TO APPLIED tion, PC (2)--3A. HEALTH EDUCATION WITH SPECIAL REFERENCE TO (2) U.S. DEPARTMENT OF HEALTH, EDUCATION, AND WEL- ORAL. CONTRACEPTIVES.. (Unpublished thesis, Univ. FARE. MATERNAL AND CHILD HEALTH CARE PROGRAMS. of N.C., Chapel Hill, 1963, referred to by E. C. October 1966. Corkey in "The Birth Control Program in the (3) A. KESSLER, MATERNAL HEALTH AND INFANT MORTAL- Mecklenburg County Health Department," Amer_ . ITY. (Paper delivered at the 9th Conference of the International Planned Parenthood Federation; Jour. Public Health 56 (1), Jan. 1966.) Santiago, Chile, April 1967 ; referred to in "Family (6) P. X. WHELPTON, A. A. CAMPBELL, AND J. E. PATTER- Planning and Infant Mortality : An Analysis of SON. FERTILITY AND FAMILY PLANNING IN THE Priorities," Planned Parenthood-World Popula- , UNITED STATES. Princeton University Press, 1966. tion, June 1967.) (7) C. F. WESTOFF AND N. B. RYDER, UNITED STATES : THE (4) R. H. BROWNING, CHILDBEARING ASPIRATIONS OF PUB- PILL AND THE BIRTH RATE, 1960-1985. Studies in

.. LIC HEALTH MATERNITY PATIENTS. Amer. Jour. Pub- Family Planning No. 20, Population Council, June lic Health 54 (11); Nov. 1964. 1967. 276 -606 0-67-7 83 , -

.(8) O. IP. WESTOIF AND N. B. RYDER. usE OF ORAL CON- PLANNING AMONG NEW ORLEANS NEGRO WOMEN. TRACEPTION IN THE UNITED STATES, 1965. Science, Amer. Jour. Public Health 56 (11), 1966. Vol. 153 (3741), Sept. 1966. (11) J. D. BEASLEY, C. L. HARTER, AND 1). V. McOmisna. (9) FREDERICK S. JAFFE. FAMILY PLANNING AND RURAL ASPECTS OF FAMILY PLANNING AMONG LOW INCOME POVERTY: AN APPROACH TO PROOTAMMING OF SERV- "HIGH RISK." MOTHERS. (Mimeographed paper.). ICES. (Unpublished report prepared for the Na- (12) L. LADE& THE MARGARET SANGER STORY. New York, tional Advisory Commission on Rural Poverty.) Doubleday, 1955; referred to by F. Jaffe in "Fam- (10) 3. D. BEASLEY, C. L. Mama) AND ANN FISCHER. ily Planning and Poverty," Jour. Marriage and the ATTITUDES AND KNOWLEDGE RELEVANT TO FAMILY Family, XXVI (4), Nov. 1964.

84 Chapter 8

Helping Those in Need Millions of people in rural America need im- Categories for which assistance is provided from mediate assistance. They cannot provide for them- public sources include the elderly, the blind and selves and their children. They must have assist- the physically and mentally handicapped, disabled ance if they are to escape from poverty.It is the veterans, and children living in households headed view of this Commission that this assistance by females. The above groups are provided with should be provided from public sources. cash benefits through the old age, survivors and In the early history of this nation, those who disability insurance (OASDI) program ; veterans' were considered in need were givencharity. Assist- compensation and pension programs; and public ance was on anindividual and voluntary basis or assistance and general assistance programs. through organizations such as the churches. The Other people with low incomes are provided charity system was local, and it was hit or miss. with benefits in kind through programs such as di- The form of assistance was entirely at the discre- rect food distribution, food stamp, public hous- tion of the donor, who was presumed to know the ing, child care, and Medicare. needs of the recipients. When assistance was given, Special programs also have been developed to it was usually in the form of food, clothing, shel- aid the work force. These include the enactment of ter, and medical services. a minimum wage, unemploymentinsurance, work- There was a deep-seated feeling about the men's compensation, work relief, and aid to de- morality of work. The able bodied were assumed pressed areas. to be able to earn an income high enough to sup- Through many of these programs, income is port themselves and their dependents, provided transferred to low income families. However, the they were willing to work. Furthermore, able- extent to which the poor are served varies among bodied people were expected to provide for the the programs. For example, unemployment insur- needs of their relatives. ance payments go largely tothose who would not be Persons who were disabled, however,- or who poor even without these programs(2). Public as- for a variety of reasons were unable to participate sistance payments, on the other hand, go largely in the market economy, were deemed worthy of to those who remain poor even afterreceiving assistance. There emerged, therefore, two cate- the assistance. gories of peopleone group which 'by virtue of Rural people, and especially those engaged in various disabilities was considered worthy of as- agricultural occupations, have not participated sistance, and a second group which deserved to be fully in the social welfare programs in the 'United poor because of what was thought tobe an un- States. Farm people were exempted from the So- willingness to work. cial Security Act in 1935; and farmers, farmwork- For the last 30 years, government has accepted ers, and workers inagriculturally related occupa- the responsibility for helping to meet the needs tions were specifically exempted from most other of the poor. Numerous programs have been devel- major labor legislation, including the unemploy- oped to meet their diverse needs (/).1 However, ment insurance programs, the Labor-Management the traditional values of the charity system have Relations Act, the Fair Labor Standards Act, and left their mark upon the programs of government. most State workmen's compensation acts. Instead, Consequently, we do not have a comprehensive, the major effort made to improve the incomesof well-coordinated program. farmers and farmworkers was through programs Even today, some categories of people are con- designed to reduce the supply, and increase the sidered worthy of assistance, while others are not. prices of farm products. Since these programs placed emphasis upon increasing prices, the bene- 1 References, indicated by italic numbers in parentheses, are listed at the end of this chapter. fits from the programs were related to the amount 85 of farm products sold rather than to the needs of place more responsibility upon the recipients than the people. Consequently, most of the benefits went do benefits in kind. The Commission urges that to the owners of land. Many farm people have re- future government assistance programs place more ceived little or no benefit from the farm price-sup- emphasis upon benefits in cash. port programs or from the social welfare pro- Nevertheless, the Commission is convinced that grams of the 1930's. the costs to society of failing to provide for mini- Although farm people now participate in social mum food, clothing, health, housing, and educa- welfare programs to a greater extent than they did tion needs are so high that special programs should when many of these programs began, farm families be developed to assure that these specific needs are still are less likely than nonfarm families to par- met for low income families. But when special ticipate in these programs. In spite of the fact that benefits in kind are provided for low income on the average farm families have lower incomes groups, these benefits should be related to income and a larger number of dependents than other in a manner that is not insulting to the dignity families, they participate less in the public assist- and self-respect of the recipient. The Commission ance programs. is of the view that the programs should be so Our transfer payment programs are much more designed as to phase out benefits automatically as effective in decreasing poverty among urban fami- income increases. lies than among rural families? For example, if The Commission has reviewed the major pub- there had been no income transfer programs in. lic programs through which assistance is provided 1961 the number of urban poor families would have to needy families and has developed recommenda- been 73 percent higher, while the number of rural tions for changes in some of them. Included in this poor families would have been 37 percent higher chapter are recommendations for changes in the (3).Of the several transfer programs, the most old age, survivors and disability insurance pro- important in raising incomes above poverty levels gram, the public assistance programs, special food were the old age, survivors and disability insurance and clothing programs, and the unemployment program and veterans' pensions and compensation. insurance program. In making its recommendations, the Commis- sion has concentrated on improving assistancepro- An Expansion of OASDI Benefits grams and on providing rural people with equal The old age, survivors and disability insurance opportunity to share in them. The recommenda- program is an earnings-related insurance program tions of the Commission have been developed with administered by the Federal Government. Under two underlying principles in mind. First, it is the the program, employees and employers pay a tax view of the Commission that every effort should based upon the earnings of the employee. The be made to provide opportunities for employment money collected is used to pay benefits to persons for those who are able to work. Reconnnendations 65 years of age and older, to surviving dependents made in chapters 3, 4, and 5 to develop jobs and to of participants, and to disabled participants. This provide education and training for those living is a compulsory income insurance program and in poverty in order to assist them in obtaining not an antipoverty program. The benefits provided employment have this as their purpose. Second, to a person under this program are based upon for individuals who cannot earn an income large the payments made by him and his employer. enough to lift them above poverty, assistance in Benefits are paid as a matter of legal right. They meeting the basic needs should be provided from are made without regard to need or means to sup- public resources. Recommendations to meet these port oneself. needs are made in this chapter. In 1967, old age, survivors and disability insur- The Commission finds that most people prefer ance payments will amount to approximately $21 assistance in cash rather than assistance in kind. Cash benefits provide the recipients with greater billion.3 These benefits reach about one in five of freedom to choose what they will consume. They the poor in the United States. The program is most *The term "transfer payments" is used to include in- 3 The remainder of this section draws heavily upon the come received from public benefits and pensions, public report PROGRAM ANALYSIS : INCOME AND BENEFIT PROGRAMS, andprivaterelief,andveterans'pensionsand O.S. Dept. of Health, Education, and Welfare, October compensations. 1966.

86 effective in meeting the needs of the elderly. Al- tired persons less than 72 years of age are reduced most two-thirds of those receiving benefits under 50 cents for each $1 of earnings between $1,500. the program are retired workers and their spouses. and $2,700 and $1 for each $1 of earnings in excess In 1965, almost one-third of the payments made of $2,700. In effect, this constitutes a built-in through OASDI went to the poor. However, three- mtax" of 50 percent on the earnings between $1,500 fourths of this went to those who were 65 years -.and $2,700 and a 100- percent "tax" on earnings old and over. above $2,700. This provision was placed in the The extension of 'the OASDI program to farm legislation to discourage people from looking for families during the 1950's greatly reduced the dif- jobs, and it undoubtedly does. There is reason to ference in incomes of elderly farm and nonfarm believe that it also contributes to poverty. residents. It has been estimated that in 1954 median The Commission is of the view that fundamental income of families with heads of family aged 65 changes are needed in our OASDI programs. and over was $1,091 for farm families and $1,929 for comparable nonfarm families. By 1960, the The Com/minion re,comemends median incomes of farm and nonfarm families with heads of family aged 65 and over were $2,294 1. That coverage under the Social Security and $2,352, respectively (4). Much of this im- Act, or equivalent, be extended to all employed provement in. the income position of elderly farm persons not now covered, and that the program people resulted from the extension of the OASDI be gradually converted to a self-financing, com- program to farmers. pulsory insurance program. The program does make a major contribution 2. That the penalty on earnings of retired toward reduction and prevention of poverty persons beeliminateil. among the aged. Approximately 40 percent of the OASDI beneficiaries are poor as defined by the Social Security Administration. Without the ben- Public Assistance Programs efits of this program, however, 75 percent of the The public assistance programs in the United present beneficiaries would be poor. States are cooperative programs of the Federal, Since the OASDI program has had a major State, and local governments, in which cash as- impact in decreasing the number of poor, it is often sistance is granted to certain categories of people suggested that benefits provided by this program who are in need and lack the means to meet their be increased as a means of further decreasing the needs. Assistance is provided to the elderly, the number, of people in poverty. However, this would blind, those who are partially or totally disabled, be an inefficient way to reduce poverty because rel- and to dependent children in families headed by atively little of the increased benefits would go to females. Each State determines its own standard the poor. One study recently estimated the effects of need by developing estimates of the costs of a of a 20-percent increase in OASDI benefits (5, minimum level of living. The State also determines p. 25). It concluded that less than one-fifth of the proportion of the need it will provide through the increased benefits would go to the poor. payments to those whose income falls below the Under the benefit formulas used, if OASDI pay- need standard. The Federal Government provides ments were increased by 50 percent rather than 20 funds on a matching formula basis to support the percent, the poor would get an even smaller per- public assistance programs. The formulas vary centage of the benefits. This is so because bene- among programs. fits are paid to those who are not poor as well Great variation exists among States and coun- as to those who are poor, and each increase in ties in the level of payments. In general, as the incomes means that a larger percentage of the ben- number of participants in a county increases, the efits goes to those who are not poor. Therefore, in- average assistance payment per recipient decreases. creases in OASDI benefits are not a very efficient The number of recipients is heaviest in the South, means of achieving further decreases in the num- where the average assistance payment per recip- ber of poor people. ient is lowest. The Commission is disturbed by the fact that Eligibility criteria vary among locations, and under' the OASDI program the elderly are pe- the eligibility is based heavily upon an elaborate nalized heavily for taking a job. Benefits for re- test of means to provide, self-support (6). Strict

87 adherence to this means test requires caseworkers The Commission believes that those who are able to spend a great deal of their time investigating to work should do so. It is disturbing,therefore, and keeping records, time which could otherwise that in most States, the public assistance programs be used in advising and helping clients. Witnesses place heavy penalties on earnings. These penalties appearing before this Commission complained provide a strong deterrent to earning a living. In repeatedly that caseworkers were under orders to most States any earnings of families onpublic make detailed and degrading investigations'. It is assistance are deducted from the public assistance as if the clients were assumed guilty of wrong- payments to those families. For each dollar of earn- fully accepting money until they proved them- ings, public assistance payments are decreased by selves innocent. This flagrantly violates a basic one dollar. In effect, this represents a100-percent principle of justice in the United States. The pro- tax on earnings. This obviously destroys incentive cedure is degrading both to the caseworker and to work, and it perpetuates poverty. to the beneficiary, and offsets much of the material Persons who obtain a job paying more than the good the program provides. level of public assistance benefits are immediately Moreover, requiring caseworkers to be detec- dropped from the rolls, even though the job may tives is a gross misuse of their special training. be seasonal or temporary. When the job terminates, They have been trained to provide the poor with eligibility must be reestablished. Typically, re- counsel and assistance. The more time they have establishment of eligibility involves a substantial to spend certifying the eligibility of clients, and delay and extreme hardship to the families con- investigating them, the less time they have for cerned. This feature effectively discourages labor the counseling and assistance which the poor des- force participation, especially in seasonal jobs such perately need. as farm employment. Onewitness who appeared The presumption that able-bodied persons are before the Commission testified as follows: able to earn enough money for -elf-support is used I get aid for my children which is $120 a month from as a basis for denial of assistance to many individ- ADC, which is not nearly enough, but I mean that's all uals and families. In most States able-bodied have, so I wanted to get a job. In order to get a job that parents in unbroken families' are ineligible for pays enough money .to take care of a family as large as assistance irrespective of their income. Only fam- mine I enrolled in this educational school taking a course in upholstery. ... Iworked for a particular firm in the ilies headed by a female with dependent children city for about 2% weeks and I was laid off for lack of are eligible for assistance. This requirement en- work. Then I didn't have a job and I wasn't on ADC and courages the breaking up of destitute families. I wasn't going to school. I didn't have anything. About, The strict adherence to a means test also de- oh, I guess about a couple of months later they accepted my application to put me back on ADO. creases the participation of farm families in these programs. Many needy farm families, who other- This Commission is of the view that assistance wise might be eligible for participation, own small programs must be so designed that the penalties on tracts of land. Even though they receive little or labor force participation are greatly decreased or eliminated and so that social caseworkers are freed no income from their land, they are reluctant to to spend their time assisting those in need. If this sell or to assign it in order to qualify for public is to be done, however, it will be necessary to sim- assistance. The participation rate in these pro- plify and standardize criteria for eligibility. grams, therefore, is low among rural farm families (3). The Commission recommends- Since each State determines its own needs standard and the percentage of need that will be 3. The adoption of the recommendation of met through public assistance, the State can vary the Advisory Council on Public Welfare that the percentage of need met for each category of there be a nationwide needs standard, with due consideration given to differences in costs of recipients. Most States provide a lower percentage living by family size, region, and city size. of need for families with dependent children than for other categories of needy persons. The adoption 4. That in relation to the appropriate needs of a program of assistance based solely upon need standard, eligibility for financial aid and social would, eliminate the discrimination against fam services be determined by family income and ilies with dependent children. net worth.

88 A simple statement of net worth such as that used people. Some of our current programs should be by the Veterans. Administration should suffice. modified at the earliest possible date in order to make them more effective in meeting these needs. The Commission recommeas- Direct Food Distribution Program 5. That the Federal Government provide funds to the States to cover the payments re- In cooperation with the State and county gov- quired by the basic needs standards and the ernments, the Department of Agriculture, through costs of certification. its commodity distribution program, distributes surplus food to needy persons. The direct- food dis- Federal funds should. be given only to States tribution program is carried out under Section 416 that enroll all those in need in the program. State of the Agricultural Act of 1949, P.L. 81-439. and local governments desiring to pay in excess Under this act, commodities previously acquired of the minimum needs standard could do so. by the Commodity Credit Corporation may be do- nated to the States for a wide variety of charity The Commission, recommends- and welfare programs, provided that the market price of commodities is not endangered thereby. 6. That public assistance recipients be per- The State and county governments establish mitted to earn a specified amount without re- criteria for eligibility for participation in this duction in benefits, and that, thereafter, bene- program. The criteria now used are similar tothose fits be reduced by less than a dollar as earnings used for participation in the public assistance pro- are increased a dollar. grams in the State. Through its commodity purchase programs, the For example, if public assistance payments for Federal Government determines the combination a family were $150 permonth, the family could be of foods to be distributed. The food is: distributed permitted to earn $50 per month in additional directly through government channels. Partici- income without a reduction in benefits. Thereafter, pants must obtain the specified foods from the des- if benefits were reduced 50 cents for each $1 earned, ignated distribution point. The local government public assistance payments would automatically must bear the costs of transportation and storage cease when the earningsof the family reached space for the commodities andprovide the per- $4,200 annually. The level of earnings exemption sonnel to certify eligibility and to supervise the should be established after a national survey of distribution. families. It should be established at a level that Participation in the food distribution program is voluntary. Local governments that do not wish would permit no more than a 50-cent reduction in to participate are not required to do so. Only 143 benefits for each $1. earned. In order to discourage of the 300 poorest counties participate. Likewise, family dissolution, single-person families should individuals who may be eligible for participation be excluded, except in case of disability. This may choose not to participate.The program may change in the benefits schedule would encourage be discontinued at any time at the discretion of clients to earn as much of their living as they can. local officials. Participants hold the view that officials making the decisions with respect to the The Commission recommends initiation and continuation of the food distribu- 7. That no residence requirements by city or tion program at the local level sometimes use this State be established as conditions of eligibility authority to force people to work in menial jobs. for participation in the program. The direct food distribution program was not developed to meet the .needs of the poor but to get Special Food Programs rid of surplus farm commodities. The program This. Commission has been shocked by the in- gives little consideration to the desires of the needy. creasing evidence of serious problems of hunger, Since the Federal Government acquires the com- malnutrition, and starvation among the people of modities at prices in excess of those prevailing in the United States (7). Special programs are neces- the market, a high percentage of the benefits of sary to meet the food needs of many impoverished the program goes to the producers of surplus foods. 89 Food Stamp Program of food. This restriction limits the freedom of the participants to buy other commodities. The food stamp program is intended to help low Under the present system, qualification for par- income families to improve their diets. Communi- ticipation in the program varies substantially ties desiring to participate in the program receive from State to State, but the program is financed local authorization and State approval. The Fed- largely by Federal funds. eral Government is requested to initiate the program in the communities concerned. In order to The 0 0717/171188i012 recommends-- participate in the program, a State must develop a plan and it must be approved at the federal level. 8. That the food stamp program be extended Eligibility for participation is related to State and to all counties and that the direct food distribu- local public assistance programs. Under the food tion program be phased out. stamp program, each week eligible persons purchase food stamps that can be used to buy food. 9. That uniform nationwide criteria be estab- The price of the stamps varies with the income of lished for participation in the food stamp the recipient, As the income of a family increases, program, with eligibility based solely uponthe the price paid for stamps increases until it no number of family members and income per longer pays the family to participate in the family. program. 10. That the minimum fee for purchase of As the program is now operated, the State and stamps be removed. Destitute families should local governments must provide personnel for cer- be given stamps without cost. tification of participants, and they must pay other administrative costs. Some counties, therefore, 11. That in order to encourage local partici- choose not to participate. Moreover, because of the pation, the Federal Government bear the costs strict means test applied to participants, many who of certification and administration of this are in need do not participate even in counties program. where the program is authorized. School Food Program The direct food distribution program has many disadvantages that the food stamp program does The national school lunch proffram and the not have The limited variety of foods and the rela- school milk program have helped considerably in tive lack of consideration of the desires of the providing for the basic nutritional needs of school recipients of food assistance in the direct food children. Schools participating in the recently au- distribution program make the food stamp pro- thorizedpilotbreakfast program alsoare gram preferable. The food stamp program allows enthusiastic about this program. Many children from rural areas find it necessary to travel long more variety in the purchase of foods by partici- distances in order to attend school. The long hours pants. It uses the normal market channels, and it of travel make it difficult for many children to ob- does away with many of the humiliating, degrad- tain. a balanced diet of meals served at normal ing characteristics of the directdistribution hours in the home. The breakfast program would system. be especially helpful to children from isolated Nevertheless, there are several weaknesses in the rural areas. food stamp program as it now operates. First, some Nevertheless, many children from families money is needed to purchase the stamps, and some which are unable to pay the price of the meals destitute families are unable to participate in the refuse to participate when they think other chil- program because they do nothave the money to dren will know they are receiving a free m.eal. One buy the stamps. Second, local authorities must re- witness who appeared before the Commission quest that the program be initiated in a county, testified as follows and the local government must share the adminis- My son, right now, he is going to school and he can trative costs. Consequently, participation is very get free lunches, but he don't want them because be feels that his playmates are going to say that he has limited in some of the areas where the need is to accept free lunches. And I can understand it, but I greatest. Third, the program creates a second form can't make him, you know. I tell him "you get free lunches, of money which can be used only for the purchase eat them, or don't eat all day." He won't go in there and

90 get a free lunch because he is thinking about what his lit- This is a Federal-State program designed to re- tle buddies may say. Children are like that... place a portion of the wages of a; worker who is The Commission recommends- unemployed through no fault of his own. It is an insurance program, and payments are made to 12. That all schools-. in rural .areas initiate covered workers as a matter of right. The pro- both school lunch and school breakfast program has pumped billions of dollars into the grams as soon as feasible. economy during periods of high unemployment, 13. That stamps be used to purchase all meals and has protected millions of covered workers and served in the schools. The stamps should be their families from the adverse physical and psychological effects of being without income during sold by the school at a price to coverthe,cost of the meals,. and children whose famines are par- prolonged periods of unemployment. ticipating in the food stamp programs would Unfortunately, due to limitations and. exclu- be provided with stamps for meals served at sions in almost all State unemployment compensation laws, this protection is not extended to work- school. . ers in the agricultural industry. This means that Special Clothing Program in rural areas farmworkers and many other, work- Mist American children don't know what it is ers, whose wages are minimal at best, are denied to he without 4dequate'clothes. A good many Chil- this income support during repeated periods of dren of rural poor families, however, have clothivig unemployinent. This represents a double standard that is inadequate to assure good health. Many in our social insurance system that should be cor- have clothing that is so inferior that they are rected. There can be little doubt that the absence ashamed to go to school. Their embarrassment of unemployment insurance coverage for approxi- and sense of indignity in the presence of other mately 2.8 million hired farmworkers contributes children is acute. The result is a poor attendance, substantially to rural poverty. record, inadequate education, and a feeling of in- A further examination of the unemployment feriority which can leave a permanentscar. It compensation laws in effect in the various jurisdic- seems to this Commission that children from low tions indicates that benefit levels for workers cur- income families should not be deprived of an adequate education because, they can't afford decent rently covered vary greatly among States and ter- clothing. ritories. It is .significant to note that almost without exception, benefits are lowest in States The Commission recommends- with the highest incidence of rural poverty.

. 14. That low income families be authorized The Commission recommendi to purchase clothing stamps for children in school. As in the case of food stamps, the price 15. That Federal legislation be enacted that of the clothing stamps would increase as per will (a) extend the unemployMent compensa- capita family income increases.. tion system to cover all workers who are em-. ployed by any employer who uses a substantial Unemployment Insurance Program number of man-days of hired labor during a The unemployment insurance system has been calendar quarter, and (b) establish minimum important in sustaining the income of most wage standards for benefits, coverage, qualification, and salary earners since its enactment as a part of and eligibility provisions with which State laws social security legislation 30 years ago. must comply. References (1) SAR A. LEVITAN. PROGRAMS IN AID OF THE POOR. The (4) T. W. SCHULTZ. OUR WELFARE STATE AND THE WELFARE Upjohn Institute, 1965. OF FARM PEOPLE. The Social Service Review, vol. (2) R. J. LAMPMAN. THE AMERICAN SYSTEM OF TRANSFERS : 3822; 125. June 1964. HOW DOES IT BENEFIT THE POOR? Mimeographed pa- (5) U.S. DEPT. OF HEALTH, EDUCATION, AND WELFARE. PROGRAM ANALYSIS : INCOME AND BENEFIT PROGRAMS. per, University of Wisconsin, 1966. October' 1966. (8) CHRISTOPHER GREEN. NEGATIVE INCOME TAXATION AS A (6) ADVISORY COUNCIL ON PUBLIC WELFARE. HAVING THE METHOD OF INCOME MAINTENANCE. (Unpublished re- POWER, WE HAVE THE DUTY. June 1966. port prepared for the National Advisory Commis- (7) SOUTHERN REGIONAL COUNCIL. HUNGRY CHILDREN. sion on Rural Poverty. May 1967.) (Special report), Atlanta, Ga., 1967. 91 Chapter 9

Rural Housing Decent housing is an urgent need of the rural About 30 percent of all rural families still use poor. They live in dilapidated, drafty, ramshackle the traditional privy. houses that are cold and wet in winter, leaky and Fewer than half of all rural homes have cen- steaming hot in the summer. Running water, inside tral heating. Most rural homes are heated by toilets, and screened windows are the exception kerosene-, gas-, wood-, or coal-burning stoves. rather than the rule. The result is uneven heating and an ever-pres- Mrs. Willie Anderson, wife of a migrant farm- ent danger of fire. worker, testifying before this Commission in Nearly 60 percent of all rural families with Tucson, Ariz., described the shacks for migrant incomes of less than $2,000 lived in houses that farm laborers near a small town in California as were dilapidated or lacked completeplumbing. follows Rural families who rent are twice as likely to The houses were raggedy. It would come a dust storm, occupy substandard housing as families who own the wind would blow, and everything in the house would their homes. Twenty percent of rural owner- shake, and the dust would blow in through all the cracks. occupied units were substandard, as compared It was just bad. with 42 percent of the renter-occupied units. Al- .. . Mostof the people ...just like ourselves before we moved, they don't know what it is to get up and turn though less than 29 percent of rural housing was a faucet on and get hot water; and they don't know what it renter-occupied, families that rented housing occu- is to get into a bathtub in a bathroom, you know, and take pied more than half of all dilapidated housing. a bath. They have toheat their water on the stove and take A disproportionate number of the elderly occupy a bath in a tin tub. They don't know what it is to have heat substandard housing in rural areas. in their house.... The South has the highest proportion of sub- Census data show -these conditions are all too standard housing in the country (table 1) . typical : In 1960, 27 percent of occupied rural housing TABLE 1 .Percent of rural dwellings that were was classified as substandarddeteriorating sound and had all plumbing facilities, United or dilapidatedcompared with 14 percent for States, 1960 urban areas. [Percent]

Of the 9.2 million substandard occupied hous- Region Rural Rural Rural, ing units in. the nation, 3.9 million were in rural farm nonfarm total areas.' More than a million rural homes are dilapi- South 36. 5 47.2 44.8 datedstructurally unsafe for human occu- North Central 58. 9 60. 3 59. 9 Northeast 64 9 71. 3 70. 8 pancy. Many of these homes are beyond repair. West 69.7 65. 4 66. 1 Less than 1 in 4 occupied rural farm dwellings have water piped into their homes. SOURCE: U.S. Census of Housing, 1960U.S. Summary 1=111110 (table 2). 'According to the definitions in the IMO Census of Housing, "deteriorating" housing needs more repair than This is not surprising, for this region has the would be provided in the course of regular maintenance. lowest per capita income, the lowest median family "Dilapidated" housing does not provide safe and adequate shelter and in its present condition endangers the health, income, the largest families, and the largest pro- safety, or well-being of the occupants. Such structures portion of the nonwhite population who are es- have such critical defects that they should be extensively pecially disadvantaged. repaired, rebuilt, or torn down. "Substandard" housing, as used In this report, includes. deteriorating and dilapi- For eight southeastern counties in Kentucky, dated dwellings. substandard housing in the rural communities 93

4,....-sormila.1.0,411.1.1..1. ranged from 66 percent to 74 percent of the total above, there are in the ruralareas 1.1 million dilap- of all rural, housing.2 idated housing units which need to be replaced. In West Virginia, a State whose population is At the present rate of replacement,more than a 60 percent rural, "two-thirds of rural nonfarm generation will have passed before theyare re- dwellings are dilapidated,or lacking in sanitary place& This estimate does not include 2.8 million facilities, or both." 3 houses which are deteriorating and alsomay soon Nonwhites occupy, proportionately, farmore be dilapidate& substandard housing than whites. Among thenon. Clearly this is an area in which private capital whites, Negroes (who makeup 92 percent of the is needed. The investment of private capital will nonwhite population nationally, and 98percent not only provide much needed housing, but it will in the South) occupy the largest share of the rural also increase employment in rural areas. The most substandard housing. Among rural households feasible way to encourage private enterprise to with a nonwhite head, 31 percent (more than build housing for low income rural families is to 360,000) of the housing unitswere dilapidated, in increase the appropriations and improve theop- contrast with 5 percent for households witha eration of the rent supplement program. white head. In addition,more than 400,000 houses occupied by a family with nonwhite headwere The Commission recommends- deteriorating. Less than 40 percent of nonwhite 1. That funds for rent supplements be families had water piped into the home; less than greatly increased to provide rental housing for 7 percent had central heating. Owner-occupancy the rural poor. among nonwhites was approximately three-fifths the rate among whites, while renter-occupancywas There are two reasons rent supplementsare fa- twice as high vored as a basic answer to housing the ruralpoor. Owner- Renter- In the first place, the ruralpoor, by virtue of their Color of household head occupancy occupancy (percent) (percent) poverty, usually cannot afford to buy a house even with low "interest" rate insured loans. Secondly, White 73.3 26.7 many of the rural poor find it necessary to move Nonwhite 45.7 54.3 to find jobs. The recommendations in chapter 10 should help in providing new employment opportunities for people in rural areas. While the devel- Housing Program opment of jobs and housing are related, the Com- The deplorable condition of rural housing isa mission believes that incentivesare needed both matter of neglect and discrimination. The rural for the construction of houses and for job develop- poor simply c %mot provide adequate housing for ment. However, housing is needed now In many themselves out of their meager earnings;nor have instances renting will allow the needed flexibility, they shared equitably in Federal housingpro- and it does not rule out later ownership. As in- grams. Not until 1961 were funds appropriated comes rise, renters have the opportunity to pur- for public housing for the ruralpoor. chase homes. If the problem is to be solved,a multifaceted As the program is presently administered, rent program must be instituted. New programs must supplements can be paid only to private nonprofit be developed to increase the supply of housing or limited-dividend entities, or to cooperative hous- for renter and owner-occupied housing. ing corporation& Formation of thenecessary entities can be and should be accomplished. But the Rent Supplements rent supplement program could operate more di- Providing adequate housing for all who need rectly, and perhaps more easily, if the payments it is a tremendous undertaking. As pointed out were made directly to the tenant rather than to the landlord. Testimony of Ernest H. Walker, acting director, CAP, To this end the following suggestion should be Council of the Southern Mountains, Inc., "Community Ac- considered : The present formula for computing tion in Rural Appalachie," before Senate Labor Commit- tee, March 13, 1967,. p. 8. the supplement to a poor tenant's rent requires 3 Report of the Governor's Task Force on Housing, him to pay an amount equal to a quarter of his Charleston. W. Va., May 1967, p. 8. income. The government's supplement then pays 94 the balance of the rent to the nonprofit-entity land- central water system or sewage .disposal system. lord on the basis of a prior contract. It is suggested These are legal requirements and must be met. that the system be reversed ; that the grant be given Secondly, the dispersed pattern of rural housing to the tenant The amount of the grant could re- tends to increase the unit cost of construction. main the same as the supplement now given. But Thirdly, for the most part there is no authority, or instead of being a supplement it would be a basic agency, in rural areas to administer apublic hous- grant. The tenant would then be free to supplement ing program. Each of these difficulties can be it with his own income and rent housing on the overcome. open market, spending slightly more or lessthan Funds have been appropriated under the com- a quarter of his income onhousing according to munity renewal program of the Department of his preference for housing and other items. Housing and Urban Development for the develop- Poor people with housing money and the free- ment of central water supply and sewage systems. dom to shop would provide an incentive for profit- The Federal Government will pay up to two-thirds making builders, as well as nonprofit organizations, of the cost. Appropriations for this program to supply their housing. should be increased. Farmers Home A.drainistra- Under the proposed system the basic housing tion has a similar prOgram. grants would be paid to the poor in the form of While construction of low rent public housing redeemable stamps- or certificates with which the on the plan of mass production maybe desirable, tenants would pay the landlords: The landlords, it is not absolutely necessary. Under the program, in turn, would redeem the stamps, or certificates, it is permissible to build houses individually. The from the government This provision would insure more practical plan, however,would be to build that the grants were spent on housing, as intended, them in clusters. This would retain individuality and landlords' could be required to show that they and at the same time, provide each family with were charging fair rents before receivingcask essential facilities at low cost. Moreover, landlords who violate open-housing Public housing requires a local housing author- regulations would be precluded from redeeming ity to administer the program. Rural areas do not the stamps for cask have public housing authorities, for the most part. This plan might be more expensive than present For example, of the 75 counties in Arkansas only rent supplements in that allowance must be made 8 have countywide housing authorities, and these for profit by private industry, whereas rents are are mainly associations of towns in the same coun- paid now only to nonprofit organizations. But the ty organized for purposes of single management. program would stimulate the housing industry In the past there was little need for public housing and would be simpler and less expensive to ad- authorities, since = public housing was limited to minister. Most important, since it does not require urban communities. The need is apparent now. For setting up :.special landlord entities, but operates only where there is a responsible agency can funds in the regular market, this approach might get a for public housing be obtained. lot more people housed. The Conunission recommends-- Public Housing 2. That countywide housing authorities within area development districts be established for Home ownership, for every rural fatally is an the purpose of administering a program of pub- unrealistic goal. Subsidized public housing for lie housing in rural areas. rural low income families is as necessary as it is for urban low income families. Not until the Hous- In some States this will require enabling legis- ing Act of 19G1 were funds appropriated for the lation. Where this is necessary, the States should construction of low rent public housing for rural be urged to act without delay. Many counties will low income familie& Even now, in spite of the not have the funds with which to pay a competent urgent need, the construction of low rent public staff, and others will lack professional personnel hoUsing for rural low income families moves to administer the program. The FederalGovern- slowly. ment is urged to give financial and technical as- There are several reasons for the lag in the con- sistance to counties where the need exists as soon ,struction of public housing in rural areas. In the as the counties are ready tocomply` with the rec- first place, many rural communities do not have a ommendation. As area development districtssee 95 chapter 10 for the introduction of area develop- Self-help housing has serious limitations. In the ment districtsare organized it is expected that first place, the family must be able to repay the the countywide housing authorities will be phased loan. Hence, many of the poor may find it impos- into them. sible to participate in the program. Secondly, the individual must have sufficient time after work to Statewide Nonprofit Housing Corporations contribute his share of labor to the project. If he It is proposed that nonprofit housing corpora- is employed full-time, the "do-it-yourself" project tions created at the State level join the public and competes with his full-time job and may result in private organizations in increasing the supply of considerable absenteeism.Thirdly, the program housing. Their functions would be to : help form is most effective when several neighbors are -within district and county housing organizations ; render reasonable distance of each other and are willing specialized forms of technical assistance to the to cooperate in the venture. Fourthly, self-help local groups; conduct demonstration projects ; act housing is a long process. It requires' organization, as a catalyst to get the private financial interests planning, and a period of training for each par- to invest more in housing; provide pressure for ticipant to learn the skills he must have in home action from government; underwrite and subsi- construction. dize housing loans; and build housing where there Despite these problems, in many instances the are no local organizations to do it rewards of home ownership compensate for all the difficulties encountered. Moreover, participants The Commission recommends- learn skills which may lead to jobs in the construction industry, and some have found steady 3. That the States create statewide, nonprofit employment there. The results to date of the self- housincorporations through which private help housing programs sponsored by govern- and puialic interests can combine to provide ment, private enterprise, and nonprofit organiza- housing. tions indicate that they should be supported. on a much larger scale. The form or organization should be thought out carefully by each State, but in each ca_ se there must The Commission recommencls- be effective representation of all of the interests. It should not be dominated by State officials, 4. That Federal funds for mutual self-help though the ones whose programs can aid housing housing be appropriated to extend and place on should be effectively involved. a sustaining basis the experimental program The States should provide some, perhaps most, such as that of the Farmers Home Administra- of the initial money required to organize and staff tion. the corporations, though contributions from pri- Loans should be made on sufficiently liberal vate sources will help establish their constructive terms so that a larger proportion of low income interest. The Federal housing programs should families can participate than can do so under be studied to find ways in which they can encour- present limitations. age formation of State corporations, for instance through planning grants, and ways through which Grants for Housing Repairs they can help the ongoing programs through loans and underwriting and purchase of obligations. The Farmers Home Administration administers a loan program for the construction and retpair Self-help Housing of rural housing. However, poor families are un- One experiment in providing housing for low able to participate in the program to any appreci income rural families is mutual self-help housing. able degree because they are unable to meet the Under this program, families living in reasonable agency's qualification& To qualify for a loan, the proximity to each other pool their resources in applicant (a) must be a farmer or be expected to order to purchase materials at more favorable engage in farming; (b) must have an equity of 25 price& They also do much of the work of construct- percent or more of the total value of the loan at the ing their homes with the assistance of technical time of settlement; and (c) must be able, to give supervision. reasonable assurance of his ability to repay the

30 loan. Clearly, the requirements of this program The Farmers Home Administration has the effectively exclude the lowest income families. major loans, and grants program for rural 16w Most of the rural poor are nonfarm laborers who income families. It also has a self -help' housing have low incomes and unsteady employment. They program, a program for housing for migratory can never be expected to repay the full amount of farmworkers, and a program of rent supplements the loan that may be necessary either to imtke for rural housing. There is overlapping of jurisdic- major repairs to the home to make it habitable, or tion between FHA and HUD. In given situations to purchase a new home. each department may apply different 'criteria. Amendment of the Housing Act in 1961 made a There are frequent delays; and the maze of redtape modest appropriation for assisting the lowest in- is frustrating to the applicant. With authority come rural families. Under provisions of Section divided there is always the danger that the pro- 504 of the Housing Act, grants could be made for grams in neither department will be funded the repair of dilapidated housing, that is, housing adequately. that was unsafe for =human occupancy without major repairs. However, to be eligible, the family The 00711276i88i012 recommends- must own the home. The limit of individual grants was $1,000. The average of the grants made was 6: That the rural housing Programs be about $800. The Housing Act of 1965 raised the centralized and that a substantial portion of ceiling on grants to $1,500. However, this section housing appropriations be earmarked specifi- of the act has not been funded since 1965. In any cally for rural housing. case this provision has had little impact on improving the housing conditions of the rural poor. The great gap in the rural housing supply will If any signifibant progress is to be made in require that a substantial share of national thous- making major repairs to the dilapidated houses oc- ing funds be spent on rural housing. The money cupied by the rural poor, a much more liberal should be earmarked consistent with recommenda- grant and loan program than presently exists will tion 16 in chapter 14. be necessary. Racial Discrimination in Housing The Commission recommends-- The disparity in housing occupied by nonwhites, 5. That Congress be requested to increase mostly Negroes, as compared with housing occu- greatly appropriations for grants and loans for pied by whites is part and parcel of the disparities the repair and construction of housing for low observed in other patterns of lifeeducation, em- income rural families. ployment, and health. "While Negroes experience all the disabilities of the poor, these are com- Administration of Housing Programs pounded by the additional fact of racial discrimination in every facet of life. Housing segregation, Our present housing programs simply have not based on race, is practiced as rigidly in rural areas met the housing needs of the, rural poor. The fam- as it is in cities. Racial discrimination has denied ilies who are In greatest need do not qualify for Negroes equal access to commercial credit institu- loans and grants under existing legislation. tions in rural areas, despite Federal authority to Both the Department of Housing and Urban dissuade these institutions from racial discrimina- Development and the Farmers Home Administra- tion in making loans. Only since the passage of the tion administer programs of housing for rural 1964 Civil Rights Bill have Negroes participated low income families. Under HUD's community renewal program, small communities (less than in any appreciable degree in the housing loan pro- 5,500 population) may obtain funds for com- grams administered by the Farmers Home Admin- prehensive planning and water and sewer develop- istration. This is, an intolerable situation, and one ment Also, the Housing Acts of 1961 and 1965 which must be net squarely and firmly in dealing provide loans and grants for rent supplements to with the problem of rural housing. Every vestige low income families, for hirsing the elderly and of racial discrimination in the occupancy of rural the migratory farmworkers, and for self-help housing must be removed. Especially important housing. are access to credit and participation in an housing programs. Until this is accomplished, whatever to harvest crops. Established residents and. service else is clone will be self-defeating. organizations have little contact with them and want less. The Commission recommends-- Although Federal funds have been available for many years for the construction of housing for 7. Thatthe.Commission on Equal Opportu- migratory workers, farmers and farm associations nity in Housing, created by Executive Order have been reluctant to build housing for migratory 1.1063, be fully implemented.f workers with the aid of these funds. Many farmers are unwilling to make the capital investment Authority presently exists which can do a great required for the construction of housing for migra- deal to reduce the discrimination often experienced tory workers in spite of the liberal terms of by nonwhites, especially Negroes, in rural areas, financial assistance by the Federal Government. particularly in the South. That authority should Moreover, they are reluctant to build housing and be used. maintain it in good condition, since they fear it will be vacant for much of the year The 00117711a 88i012 11600M11710a8-- While some improvements have been made in 8. That Title VI of the Civil Rights Act of recent years, the general condition is still deplor- 1964 be enforced to prohibit any federally in- able. Twenty-eight States have enacted legislation sured bank, mutual savings bank, or savings establishing minimum standards for living space, and loan institutions from discriminating, on provisions for running water, bath and toilet facilities, cooking and dining space, sewage disposal, the basis of race, in making home mortgage and requiring more frequent inspection of labor loans, or from making home mortgage loans to persons who do not give legally enforceable camps to see that standards are met. In general, assurances that they will sell or lease on a non- however, housing for migratory labor is still intol- discriminatory baskf erable. The following citation is all, too typical. In one State, in 1966, of 760 migratory labor camps, It is the responsibility of the Congress as well occupied by 20 to 25 persons, 420 (55.26 percent) as the Executive to completely eradicate racial were approved. These 760 camps had a total of 717 discrimination from this important aspect of deficiencies, including the following American life. Camp site (general conditions, safety hazards) 75 Buildingdisrepair,lackofsufficientdoorsor Therefore, the COM/17d88ifY12 VeCOMMenC18--- windows so Poor mattreisses, not enough beds, 28 9. That the Congress enact the Fair Housing Absence, or disrepair, or screens 102 Unsanitary privies, and in disrepair 245 legislation now pending before it in the Admin. Unsanitary storage and improper disposal of garbage istration's Civil Rights Bill. and refuse 140 Water supply, improper well construction 14 Housing Pioblems of Special Groups Housing the rural poor is not a simple matter. The situation is complicated by the special prob.. The living conditions of Spanish Americans lems of migratory farrnworkers, Spanish Amer- stand out because of their concentration regionally, icans, and Indian American& and because they are a distinct cultural group. Migratory Farmworkers Traditionally they have been the objects of discrimination and exploitation.Althoughfor Migratory farmworkers as a group are discrim- decades they were primarily rural, presently al- inated against. They are not welcome to take up most 80 percent of their population is urban. permanent residence in the communities where According to the 1960 Census there were ap- they work for a brief period, or season each year. proximately 3.5 million people with Spanish sur- They are tolerated because their labor is necessary names in the United States, Although they con- ilee comment. by James a Gibson and Vivian W. stituted a relatively small proportion of the total Henderson at the end of this chapter population, they made up 12 percent of the papilla-

. 7.," `","7,

tion of the five Southwestern and Western States Virtually all the shelter of Alaskan natives is of Arizona, California, Colorado, New Mexico, unsound, dangerously overcrowded, and, unfit to and Texas. Approximately 1.4 million Spanish live in. Americans live in California and another 1.4 mil- The Public Health Service says that "lack of lion in. Texas. safe, available water supplies and waste disposal Forty-six percent of the rural. Spanish Ameri- facilities. .is in large measure responsible for cans are employed as farm laborers, a large propor- the high incidence of preventable diseases that still tion of whom are migratory farmworkers. In prevail among Indians and Alaskan natives." The 1960, 103,000 of the 261,000 Spanish-American conditions under which they live not only threaten farmworkers (39 percent) did some migrant farm their life, health, and morale, but are a major wagework. Twenty-five percent of the 409,000 contributing: factor to their continuing poverty and migrant farmworkers in 1960 were Spanish Amer- their isolation from the fruits of progress. icans; however, they were only 5 percent of the Up to 1961 little effort was made to alleviate the 3.3 million nonmigratory farinworkers. housing problems of Indians and Alaskan natives. The average income level of Spanish Americans More recently, the problem has been acknowl- was much below the income level of the south- edged, and from a large inventory of national hous- western area as a whole. Fifty-two percent of the ing devices, several have, at long last, been invoked rural Spanish-American families had incomes of that are proving helpful. The number of dwelling less than $3,000. units provided, however, has been minuscule in The housing of. Spanish Americans in the south- relation to the need. Housing construction for western region is far below the level of most of the Indiansabout 1,000 to 1,500 units annuallyis area. A study of housing conditions in central New not even keeping pace with deterioration, decay, Mexico revealed that while 89 percent of the homes and population growth. had electricity : TheHousingAssistanceAdministration only 33 percent had water piped into the home; (HAA) is administering the program which has only 26 percent had flush toilets; been providing the bulk of the new housing for only 18 percent had tlephones.8 Indians. Indicative of the response is that 80 In- Another study showed that only a third of the dian tribes have organized housing authorities and rural Spanish-American families in 'Atascosa applied for grants for some 5,500 homes. Half, of County, Tex., had indoor plumbing, and only a these homes are low-rent public housing projects, fourth had hot running water.4 and the other half are "mutual self-help" under- Recommendations in this chapter would provide takings. The low-rent projects include 960 dwell- a greater supply of housing' for migratory working units which have been completed and 301 which ers. Implementation of recommendations 7 to 9 are under construction. The average cost is$17,500, would relieve Spanish Americans of ethnic dis and they require rent payments equaling one-fifth crimination and enable them to participate in all of family income. The self-help undertakings are housing programs designed to improve the quality being built under the supervision of the Bureau of of housing of the rural poor. Indian Affairs (DIA).Land and labor are contributed by the Indian people, and materials, equip- Indian Americans ment, and skills are paid for from HAA funds. The housing conditions of Indians and Alaskan Some 136 units have been completed at an average natives are worse than those of any other minority unit cost of $9,300 and 314 are under construction. group in the nation. Of the 76,000 houses on: In- Ownership is possible, on the average, after 17 dian reservations and trust lands, at least three- years of payments. The program is small, butit fourths are below minimum standards of decency. marks an important beginning. The houses are grossly overcrowded. More than HAA has been recently considering a "turn- half are too dilapidated to repair. key approach" under which a tribal housing authority will agree to buy houses designed and OLEN p. LEONARD AND HELEN W. JOHNSON. FAMILIES built by a private contractor, HAA feels that this IN THE SPANISH-SURNAME POPULATION OF THE SOUTHWEST. ii.S. Dept. Agr., Agr. Econ. Itpt. 112, April 1961, p. 22. will produce houses faster and up to 20 percent 4/bid, cheaper. If it were successful and substantial, it

276-4195 0-474.8 99 would offer a hopefid prospect to a group of The Federal Government's housing dollar does Americans too long neglected. not go as far as it should. Indian houshig costs are Other housing programs from the general in- often inflated by as much as 25 percent by the De- ventory of Federal housing aids have also been partment of Labor's policy of determining prevail- helpful although unsubstantial. In the 1960-65 ing "Davis-Bacon" wages for construction under period, only 393 FHA-insured loans were made to government contract. Under this policy, union Indian families. In the same period, only 124 home scales prevailing for commercial construction in construction loans were made by the Farmers urban centers become the standard, rather than Home Administration. Despite the large number prevailing wages for housing construction in the of Indian war veterans, few have qualified for private sector on or near the reservations. Wage the Veterans' Administration- Mortgage Guaran- rates for housing construction on the Arizona side tee program. The Bureau vf Indian Affairs, of the Navaho reservation, for example, are based through its revolving credit funds, has made loans on the Phoenix rate plus a travel increment, bring- for both new housing and housing improvement ing the total hourly wage for common >labor to indirectly through ths tribes, but between 1960 $3.74 an hour, or more than double the prevailing and 1965 only 1,200 families benefited with new rate on the reservation. homes. In the past 4 years BIA has produced 368 HAA has demonstrated resourcefulness in its new homes for the most severely handicapped programs, but no administrative unit on Indian families, mainly in the northern tier of States. problems exists within the agency. The Office of Economic Opportunity is spon- There are also differences in viewpoint between soring two experimental programs for Indian HAA and BU requiring resolution. HAA's housing. One is on the Rosebud Reservation in insistence on high standards has prolonged the South Dakota, involving 375 units of minimum construction period of some housing and has in- standard at an overall cost (including siteprep- creased costs. At the same time, BIA feels that aration and outdoor sanitary facilities) of $5,000. under HAA's "turn-key approach" builders will The other project at three Minnesota reservations look more to maximizing their profits than to is designed to train Indians in the building trades. spending time and effort to ensure full participa- The costs per unit are expected to be $11,400. 0E0 tion in the building by the Indian beneficiaries: and the manpower development training program The legislation governing the Farmers Home will expend $6,600 per unit for supervision and Administration in making housing' loans to low in- training costs. A few Indian tribes have also set come reservation Indians has been interpreted to aside specific sums for new housing and home im- mean that' the agency cannot make loans to those provement; but these have been of minor signifi- who are not actually farming, or who lack market- cance in relation to the total situation. The $10 able titles to their land. Additional congressional million authorized in 1966 for housing Alaskans authorization is needed. at a maximum per unit cost of $7,500 will provide Similarly, the HAA's authority to make loans homes for no more than about 1,300 native families. and grants for repair and, improvement up to If all of these programs were carried to their $1,500 per dwelling is restricted to urban renewal maximum projections and if all of the HAA- areas. Few conventional institutions have shown assisted dwellings were completed in a year, it interest in Indian housing operations with gc, vern- would be hardly more than a demonstration. The ment guarantees. rate of building would not keep pace with the con- Present programs are not meeting the funda- tinuing deterioration and dilapidation, needs re- mental requirements of those most desperately in sulting from families moving to centers of em need of housing, particularly the hard-core rural ployment, and continuing population growth. Indian poor. While the housing assistance made Impediments to more rapidprogress are fiscal, available to reservation Indians in the last few administrative, and legal. BIA's revolving funds years through the formation of tribal housing au- of $27 million are largely committed to outstand- thorities has helped, it has demonstrated serious ing loans, and they embrace much more than hous- deficiencies. ing. In fiscal year 1967, BIA. had only $1 million Major problems include the high construction appropriated for its direct home improvement cost of low-rent housing and the indifference to its program. upkeep by its renters, the long construction period

100 for mutual self-help housing, the difficulty of executive branch has been so sluggish in the area small groups in qualifying as housing authorities, of housing discrimination. and the dearth of Indian managerial ability. Con- We cannot increase the total housing supply for ventional loans are available to very few Indians. our low and moderate income families by increas- The unavailability of electricity or water has ex- ing density in the urban ghetto, and we cannot get cluded many Indian and Alaskan native families unemployed Negroes to the jobs they need when from HAA-assisted housing because the AgenCy the majority of new jobs are arising in suburban construes the law as requiring running water and America where Negroes are not permitted to live. sanitary facilities. Insistence on these require- The President has rightly asked the Congress to ments has meant that many rural and other Indian act in this area, but he cannot fail to use such groups are excluded from the benefits ofhousing authorities as he already possesses to deal with this aid.' problem. There has not been a meeting of the President's Committee on Equal Opportunity in The Corntniesion recommends-- Housing since June of 1965; it does not have a full complement of Commissioners, and there has been 10. That a unit of the agency administering no chairman or executive directoz since late 1966. rural housing administer a comprehensive We call for action by the President now. Let him housing program for. Indian Americans, and demonstrate to the Congress and the Nation the that sufficient funds be appropriated to bring leadership the problem calls for. the housing for them to a par with that for other Americans as soon as possible. Comment by Robert A. Roessel Concern- Presently, funds for Indian housing are admin- ing the Paragraph Preceding Recom- istered by the Bureau of Indian Affairs, the Hous- dation 10 ing Assistance Administration, and the Depart- Economic and housing improvement go hand in ment of Housing and Urban Development. If the hand. The development of population centers program is administered by a single unit within a where new industries are located offers an oppor- unified housing agency a comprehensive program tunity for such economic improvement for Indians. can be developed more efficiently. The unique But unless housing is made available where indus- problems of Indian housing can best be given try is located, development is impeded and frustra- proper consideration under such an arrangement. t tion invited. Any plan for the development of economic enterprise of benefit to Indians must, Comment by James 0. Gibson and Vivian therefore, call for a simultaneous housing program W. Henderson Concerning Recommen- in such growth centers. dations 7 and 8 Comment by Robert A. Roessel Concern- We believe that this Commission has grapled ing the Discussion Following Recom- earnestly and honestly with this persistent and mendation 10 grievous blight on America's promise of equality for all. At a time when racial hostilities are so In developing a comprehensive housing pro- apparently in danger of escalating and polarizing, gram for Indians the following considerations are when minorities are aggressively seeking the end essential: now to segregation and discrimination in all their a. Adequate funds must be made available so guises, and when the enemies of equality of oppor- that the Bureau of Indian Affairs can employ an tunity are ascendant in the local, State and Na- adequate staff of Housing Assistance officers. tional legislatures of the nation, the very survival b. Funds must be made available for adequate of our country requires continuation of the strong water and sanitation facilities development in executive leadership in civil rights exhibited in Indian reservations. the early days of this adininistration. We are, c. Farmers Home Administration should be au- therefore, gravely disturbed that action by the thorized through legislation to make direct loans to non-farm Indians if they hold leases on their t See comment by Robert A. Roessel, Jr., at end of this land or can furnish adequate security other than chapter. fee ownership. SILQi.i.4474,,:00,64.--,

d. Demonstration programs by HUD in Indian should receive the requirements for heat, electric- Housing should be greatly expanded. Rehabilita- ity, running water, and inside sanitary facilities tion loans and grants for repair and improvement where the Public Health Service recommends it; now available in urban renewal areas should be or where the lack of such facilities entails incon- extended to include Indian reservations. veniencies but is no threat to health and safety. e. The rigid standards of HAA,while suitable f. The Rosebud Sioux type of housing program in some cases, are not suitable in all and require currently supported by PHS, HHF, 0E0, and a far greater flexibility in their application. HAA BIA should be expanded to other reservations.

102 Chapter 10

Area and Regional Development The Problems More important, however, is the fact that most manufacturing and service industries have always In all parts of this nation there are today whole located in larger communitiesin counties con- communities and even regions that are depressed, taining towns larger than 25,000 population and bypassed by growthpoor. Many of these are ru- instandardmetropolitanstatisticalareas rural communities caught in this swirl of our na- ( SMSA's) .1 During the 1950's, 90 percent of, the tion's economic growth and technical change. Some national increase in employment occurred in more than others have 'borne the brunt of these SMSA's. And from 1959 to 1964 SMSA's cap- forces but have garnered few of the benefits. These tured about 72 percent of 'the national growth in are the poverty-stricken and depressed rural corn- private nonfarm employment covered by social mtmities. Few of these communities have had con- security.2 trol over the forces buffeting them; they have been Developments in transportation and communi- unable to alter the forces for the better. cations systems along with the expanded network The problems of the poverty-stricken rural com- of roads and highways have confronted many vil- munities include a lack of employment opportuni- lages with competition from larger towns and ties, inadequate public facilities and services, and cities. The result has been extension of the trade fragmented planning, which is frequently of poor areas of the larger towns and cities into areas once quality. Certain problems of community growth served by villages. The same developments have are discussed in this chapter. Recommendations made it possible for rural people to commute far- in are made to help communities help themselves ther to jobs in towns and cities. Moreover, modern surmounting their difficulties. The recommenda- transportation and communications systems have tions do not provide programs that can be followed made it possible for industry to decentralize some- by all communities. The issues and problems are what. Manufacturing and trade are moving from too complex and ill-understood. Yet the recom- the central cities of large SMSA's to the suburbs, mendations do form a framework and a strategy to smaller SMSA's and their suburbs, and to coun- within which individual communities may provide ties adjacent to SMSA's. Manufacturing continues the needs a their residents and quicken the pace to grow rapidly in the larger towns, also (1, 0).3 of development. In varying degrees rural areas are now parts of Employment Opportunities larger economic communities with a dominant town or city as a center, the community encom- The lack of job opportunities .;in, poverty-stricken passing several counties. The linking of rural to rural areas usually sterns from sharp declines in urban areas is continuing and indeed the rural- the manpower needs of the natural resource indus- urban distinction is becoming meaningless. Rural triesagriculture, forestry, fisheries, and win- ingand the failure of other industries to replace An SMSA is a county or group of counties containing the jobs lost and to provide jobs for new entrants a city of at least 50,000 population and itsaccompanying urban and suburban areas. to the labor force. The industries attracted to rural 'Material for this section came from unpublished data communitiesespecially the smaller, more remote supplied by E. S. Dunn, Jr., of Resources for the Future, communitiesare not rapid growth industries in Inc., and by the Regional Economics Division, Officeof terms of employment. Istead, they are textiles, Business Economics, U.S. Dept. of Commerce; CLAUDE food and kindred products, apparel, wood prod- C. HAREN, A CHANGING RURAL AND URBAN AMERICA, Econ. ucts, lumber, furniture, and miscellaneous manu- Res. Serv., U.S. Dept. Agr., Dec. 1966; and monsoLooicim TRENDS IN MAJOR AMERICAN INDUSTRIES,Bulletin 1474, But facturing. Of these industriesonlyapparel Labor Statis., U.S. Dept. Labor, Feb. 1966. manufactUring experienced rapid employment in- 3 References, indicated by italic numbers in parentheses, creases from 1960 to 1965. are listed at the end of this chapter. 103 poverty is concentrated in communities where the MUM population levels of 50,000 to 100,000 if they process is moving slowly and where the centers are are to make full use of modern practices (3, 4, 5). weak and underdevelopel. If these centers can be In the absence of population concentrations of stimulated sufficiently and the rural periphery can this magnitude, most rural residents suffer from be more closely linked to the center, jobs for the a combination of inferior public services and high presently unemployed and underemployed may be per capita costs. developed. And the flow of people from poverty- A second essential requirement to the provision stricken rural areas to the nation's metropolises of community services and facilities is the avail- can be replaced in good part by employment nearer ability of public revenue. Here, too, the rural com- their homes and in the nation's smaller cities and munity faces serious trouble : the number of tax- towns. payers is on the decline; taxing jurisdictions are Public Facilities and Services severely restricted in size; and over two-thirds of all local revenue is raised through the use of anti- Many public facilities and services available to quated and poorly administered property taxes urban people and firms simply do not exist in rural taxes that fail to yield revenues sufficient to meet areas; and those that do are frequently of sub- local needs. standard quality. There is no need to dwell on the Finally, without leadership and initiative at the consequences of such items as poor schools ; absent local level, public facilities and services will likely or inadequate health and medicalfacilities ; prove insufficient. Yet, few rural communities are meager libraries; and little public transportation : large enough to employ full-time administrators, they have been elaborated in earlier chapters. not to mention highly trained professionals. Fur- The availability of these and other public facil- thermore, the rapid out-migration of young adults ities and services is crucial both to i he rural poor erodes most indigenous leadership before the com- and to the rural communities their selves. To the munity can benefit. poor their availability provides access to the crucial preconditionseducation, health, job informa- Planning and Programing tion, and transportationfor escaping the ranks In response to the problems facing rural areas, of the poverty stricken. To the community their a myriad of private and public development or- presence or easy availability is necesr-ary for new ganizations at town, county, multicounty, and and expanding industry. region levels has been established. Each organiza- The problems confronting local governments in tion strives to create jobs and improve the facili- providing these services and facilities are complex. ties and services in its area. Moreover, other dis- Time stand out in relative importance : population tricts have been created which are concerned with size and density, the availability of public revenue, natural resource conservation and development. and local leadership and initiative. These include water and sewer, soil conservancy, The influence of population size and density on small watershed, and irrigation districts, and river costs and quality of service is crucial. For most basin development regions. Finally, bills pres- public services, per person costs are relatively high ently before Congress would add yet another layer for the small villages, lower for small to medium- of districts over the already existing ones.4 size cities, and appear to be higher for the very Many of these groups and areas have attempted large cities. The effect of population size and den- to prepare comprehensive plans. Many have pre- sity is as great on quality, particularly for services pared plans specific to their particular foci. Still others have not planned at all. in which specialized technology plays a key role. The attempts at comprehensive planning have James Conant has estimated that a high school not been unqualified successes. Many plans have graduating class of at least 100 (which requires been largely descriptive of the area and have con- a community population of around 10,000)is needed to provide an academically acceptable ele- tained little analysis of area problems and oppor- mentary and secondary education. Other public tunities. Many have been unrealistic in what they services (for example, police departments, dis- 4 Senate Bills Nos. 2088 and 2134, 90th Congress, 1st trict hospitals, health departments, library sys- Session. The former establishes "urban poverty areas" tems, and highway departments) require mini- while thq latter establishes "rural job development areas."

104 set out to do given area resources and location. nity organization, and recommends the establish- Some have been well-documented sets of realistic ment of "area development districts" throughout plans which can succeed if carried out. the country. Chapter 11 fully discusses the organi- Many development districts are inappropriately zation of communities. laid out so that their programs have little effect on the economic and social forces they seek to Area Development Districts and Their change. Frequently the districts are too small to Organization control sufficient resources to affect growth. Too DELINEATING AREA DEVELOPMENT DISTRICTS.- often they do not take into account the interrela- The frontiers of communities have enlarged and tionships between town and country that must be expanded through time. They now cut across town used and strengthener' if development efforts are and county boundaries because people and their to succeed. activities do. A rural resident may orierate a farm The result is an overlapping patchwork of dis- or work on one. But he buys his supplies for the tricts and regions, their plans and programs. Too farm and family in town. Or he may live in the often the boundaries of the districts and regions open country and commute to a job miles away in are not appropriate for maximum effect of the a town or city. His children are frequently bused plans and programs they initiate. Too frequently to school in a nearby city or town. His church is the plans and programs they develop and imple- likely to be in a nearby village or town. He may ment are unrealistic, ill-prepared, mutually incon- buy more expensive items like a car or television sistent and actually work at cross-purposes with in the largest town in the area for there he can other plans and programs. Under such circum- make a better selection. In shortcountry, town, stances it is not surprising that the energy, plan- and city are one; they cannot be separated. ning, and monies expended by the myriad of The delineation of an area development district, organizations and districts do not achieve their therefore, involves the selection and specification goals. of a growth center and the surrounding country Better delineated districts and realistic planning it serves, including the rural periphery that is and programing within each district, along with economically linked to the center. The function Federal aid in the form of grants and loans for of the growth center is to act as a focal point for planning and for public facilities, subsidies for growth and to house the public facilities and serv- industrial development, and finally tax reform, ices which serve the entire district. The growth hold promise as means to stimulate growth and center and area development district must be de- improve the social and economic climate in rural lineated together. Though no hard and fast cri- areas. These are discussed in ensuing sections of teria can be laid down, some principles can be this chapter. followed. The area development district should be the area Organizing Communities for Development in which most of the residents work, shop, and The overall goal of community development is spend the majority of their leisure time. This area the economic and social improvement of the com- depends on its present and prospective economic munity so that the community's residents partici- activities, its potential labor supply, its population pate fully in the opportunities and responsibilities density, the size of the growth center, its location of our society. To achieve this goal, the full gamut relative to other centers, and the present and po- of problems and opportunities should be examined tential road and highway system. With few exceptions, the area is larger than a single county. and programs implemented for their solution_ and The potential labor supply in an area is im- realization. portant if industrial development is contemplated. Community development programs should be If the trends of the 1950's continue into the 1970's, specific to a geographic area and the people who some areas will not have adequate labor supplies live there : this is the community. For these pro- to support rapid industrialization unless in-mi- grams to be successful the geographic bounds of gration occurs. For instance, two important overall the community must be delineated carefully. This trends exist in labor force projections for southern section discusses some criteria for delineating the areas. First, in general, if the trends of the fifties community boundaries, discusses briefly commu- continue through 1980 within the South, the male

105 labor force will increase rapidly in metropolitan ly populated areas with no towns and only villages areas; will 'be stable or slowly increasingin areas may have the potential laborsupply and location adjacent to metropolitan areas; and will be stable relative to markets so that a center can be created. or declining in areas further removedfrom met- The center may be an expansion of an existingvil- ropolitan areas. Second, the female labor force will lage, a development to encompass a number of increase rapidly throughout the South, if the villages in close proximity to each other, or a com- trends established in the fifties prevail. This is plete "new town." However, appropriate locations partially a result of a national trend plus the fact for these types of activities may be very few in that southern industry is increasing its use of fe- number. males more rapidly than males.5 Considerations such as these suggest that the The growth potential of a center depends on its national importance of the largest SMSA's be size, location relative to other centers, and its past recognized and that each of these multicounty growth, because its economic and social functions metropolitan areas be area development district& vary with these characteristics. The growth pat- Smaller SMSA's should be the centers of area de- terns of the nation's largest metropolitan areas fig- velopment districts which are larger than the ure prominently in the nation'sgrowth, and their multicounty SMSA itself, for adjacent counties spheres of influence encompass the-entire country are closely linked tothem. Outside the influence of or major parts of it. Most other metropolitan cen- SMSA's, a larger town if possible should be desig- ters have a diverse manufacturing, communica- nated as the center and the total population ofthe tions, trade, and service base and have self-suffl- area as well as r =waitingand trade patterns cient growth. Smaller centers within commuting should be considered in delineating the area de- distance of metropolitan areas tend to become velopment districts. dormitory towns supplying labor and some spe- The Public Works and Economic Development cialized manufactured and processed products to Act of 1935 provides for the creation of multi- the metropolitan area, and basie services to their county economic development districts.But each own residents and local rural areas. district must contain at least two "redevelopment The same size of center outside the direct in areas." A redevelopment iarea, in brief, is a labor fluence of metropolitan areas may assume more of areacounty, city, or Indian reservationwhich the functions of metropolitan areas, having a more is depressed in the sense that its actual or impend- *verse manufacturing sector and supplying more ing unemployment rate is high, its income level services to a broader area. In areas well beyond the is low, or, it has sustained heavy population los& influence of metropolitan areas, the towns function In rural America, redevelopment areastypically as service centers for, the surroundingfarming, are single counties.The act provides for planning fishing, mining, and forest industries and have few grants and grants and loans for public facilities manufacturing activities. This situation is com- and for industrial development Both redevelop- mon hi the great Plains, Southwest, and Rocky ment areas and multicounty economic development Momitain States. In such cases strengthening the districts qualify for such assistance. center's service nature and proidding better and A number of problems exist with these types of more accessiblepublic facilities to the population designation. First, a redevelopn,ent area need not of the district may be more appropriate goals than be in an economic development district. Insuch industrialization. cases funds may bemisspent because the rede- In some areas the center is diffuse, made up of velopment area, may be an inappropriate location for = industry or public facilities. No account is numerous smaller towns close together and densely taken of the economic links the redevelopment area populated outlying areas. Finally, some few dense- has with surrounding areas and centers: Second, the requirement that an economic de- "Projections made by the, Commission. Male and female labor force data by State Economic Area for 1950 velopment district must include at least two and 1900 were projected on a straight line basis to 1970 redevelopment areas leads in some cases to gerry- and 1980. These were then corrected to projections by mandering just so an economic development dis- States for the same years. The State projKdons are found trict can be created. The result is a district with in : D. JOHNSTON and C4, IL METHEE, LABOR FORCE PRO- JECTIONS BT STATE,* 1970 AND 198t Special Labor Porce little relationship to the geographic patterns of Report 74, Bur, Labor Stalls., U S Dept of tabor . economic activities in the area. Federal funds

106 spent in such districts have less impact than if the established State planning districts and regions." district had been created more along the lines of Thesedistrictscouldbeareadevelopment the economic activities in the area. districts. , Third., under present regulations Federal aid The Commission accepts the criteria established under the act may go only to the redevelopment in the Public Works and Economic Development areas and the growth centers in an economic de- Act of 1965 for the designation of redevelopment velopment district. Neither of thew may be the areas as adequate only for the identification of best location for the facilities or industries called poverty-stricken and depressed areas within area for by the plans of the district. developmentdistricts.Once identified,these Finally, the Public Works and Economic De- poverty-stricken and chronically. depressed areas velopment Act may be criticized as being problem should be included with more prosperous areas centered. When high unemployment rates, are im- and have a large center if at all, possible. This minent or after an area has come upon severe will allow the more prosperous parts and the large economicproblems,comprehensiveplanning center to aid the depressed parts and increase the monies are available and the area becomes eligible growth potential of the area. Furthermore, the re- for assistance under the act. Once the immediate quirement that at le hst two redevelopment areas problem is solved, all aid, including planning aid, be in a district .:should be removed. This will is cut off : the program may cure but it never eliminate the inappropriate districts created under prevents. Planning aid should always be available the present criteria. because through comprehensive planning and pro- Despite the fact that areas functionally linked graming for well-delineated areas some of the with growth centers may cut through' counties, conditions which lead to chronic depression may area, ,dev-elopment districts, should be composed of be avoided. Whole "counties. Counties may not have there- The. formation of area development districts sources and to cooperate with and co- should correct many of the disadvantages of the ordinate their plans and programs with more than present economic development districts. one area develoPment district. Hence placing whole counties: in area development districts may The Commiseion recomnenc18 ease .their administrative burdens and add to, the 1. That multicounty area development dis- potential success of the development effort. . tricts, each with a present or potential growth However; distriets should. not stop at State bor- center, be established throughout the country. ders if bounties on either side of the border are functionally linked.. Circumstances in which an The COmMission believes that States, counties, area development district should cross a State line. and municipalities are in an excellent position to arise typically when a growth center lies on or know their economies and the interrelationships very near a State line. States, far more than coun- among cities, towns, and counties. Therefore, the ties, have the resource and administrative flexi- States, in cooperation with their political subclivi, bility to make such districts workable and successful. Interstate compacts and regional com- sions, should have the responsibility for delineat- missions are two means for affecting such coopera- ing area development districts utilizing guidelines tion and coordination. . . established by the Federal Government. Mast Indianreservationsaredesignated The Federal Government "should cooperate in redevelopment areas., by the Public Works and this effort. The President, in a memorandum dated Economic Development Act of 1965. Because, of September 2, 1966, called for coordination at the the variability- among reservations and the tribes Federal level of federally assisted comprehensive themselVes, it may be difficult forsome reservations planning efforts_ He encouraged State and local to work fruitfully as part of a larger area develop- planning agencies to work together in using con- ment tiisict, .Flexibility in the consideration of sistent sets of economic estimates for planning Indian reservations, therefore, is desirable. common districts. Furthermore,. he stated that ORGANUATION or AREA DEvELOPMENT DIS- "the boundaries for planning and development miums.The establishment Of. area development districts assisted by the Federal Government Memorandum from the President riquesting coordina- should be the same and should be consistent with tion at the Vederni level, Circular No. A.SO, Sept. 2, 1966.

107 districts is meaningless without appropriate orga- which was created under the Appalachian Region- nization to undertake comprehensive planning and al Development Act of 1965. program implementation. Moreover, if the 'orga- The Commissionsare :Appalachia, Four nization works independently of government, pri- Corners, Ozarks, Coastal Plains, New England, vate groups, .and interests, little of benefit will be and the Tipper Great Lakes.. accomplished, areas will continue to be disorga- The multistate concept provides an excellent nized, and the possibilityof different groups work- vehicle for the coordination of interstate planning ing at cross-purposes with insufficient resources for economic development, thereby allowing for a will immense. The purpose of an area development more rational expenditure ofeconomic develop- district is to create an organization within and xnent funds. Out of these efforts it is possible to through which the diverse interests and groups in organize a set of plans and programs which dove- the district can cooperate and coordinate overall tail and are consistent with the plans, both of indi- planning and programing. Therefore, the makeup vidual area development districts within a given of the organization is crucial. region and individual regions across the nation. Chapter 14 contains a discussion of the appro- Yet, the full measure of these advantages cannot priate organization of area development districts. be realized unless the boundaries of the regions are Because of the differing situations found in differ- consistent with prevailing patterns of economic ent States and area development districts, flexibil- and social activities. If the boundaries are illogical ity of organization is necessary. The possibilities from an economic development and planning point range from a league of local governments to an ofview,theregion'spotentialsuccessis organization of representatives of Federal, State, compromised. and local agencies and of private interests and The regional commissions now operating were groups. Directly connected to the organizationand formed on the basis of a number of criteria, chief responsible to it should be a professional planning among them being the degree of underdevelop- staff to carry out the technical aspects of the plan- ment. This is measured in terms of the area's rate ning process. of, unemployment and out-migration, its level of It is also crucial to provide local private interest income, the condition of housing, the availability and minority groups a strong voice in the planning of health and educational facilities, and the ac- and programing. Chapter 11 discusses and recom- cessibility of private capital. Strict adherence to mends an advisory council to the development these criteria leads to the delineation of regions district organization. Its function is to aid in the made up almost solely of poverty-stricken areas identification of problems, to initiate ideas for with few if any prosperous growth centers. planning and programing, and to review and eval- Thus, from the standpoint of their geographic uate the plans and programs for the area develop- boundaries and focus, our present regional comment district. missions are problem centered with little flexibility to consider the full range of opportunities for de- Regional Planning Commissions velopment. As such, they are ill-suited for com- Many issues and problems are broader than an prehensive planning and development, particu- area development district or even a State. A struc- larly in a long-run context. Though the regional tura which allows planning and programing for commission concept as it is currently practiced development across area development district and recognizes the arbitrariness of State boundaries in State lines is necessary. This section discusses the development planning, it fails to appreciate the need for a rational set of regions and the present importance of building on a structure of districts regional commissions and recommends an alterna- like the area development .districts. In cutting tivd set. across these areas, frequently including only their The Public Works and Economic Development depressed parts, the region denies itself important Act of 1965 enables States to cooperate and co- support from nearby growth areas. It is the Com- ordinate with one another on planning and eco- mission's view that greater care must be exercised nomic development programs within the context in delineating regions and more attention devoted of Regional Action PlanningP Commissions (Title to combining areas that share something other than V).To date six commissions have been created, in- economic and social stagnation. cluding the Appalachian Regional Commission Beyondtho problems associated with delineating

108 regions through adherence to what we consider to and planning. They could bevaluable in eonduct- be inappropriate criteria, there areproblems as- ing economic analyses of the region and as anaddi- sociated with the unplanned anduncoordinated tional body to aid in the formationof regional spread of Regional Action PlanningCommissions. development goals and in regionaldevelopment An expansion of these regions in which poor com- planning. Indeed, the Federal ReserveBanks of munities are grouped together will onlystretch Minneapolis and Boston have successfullyengaged already insnfficent resources over morelagging in some of this kind of activities. regions and hence dilute the beneficial consequent 3 in each. The Coarmigeion reeotrynmzek- A more appropriate course would be toestab- with the dis- 2. That the Federal Government, lish regions composed of area development cooperation of the States, should establish re . tricts throughout the country for theinitial pur- districts forum for the interstate plan- gions made up of area development pose of creating a encompassing the entire nation. ning and coordination of programsof mutual concern. Interstate highwayand road networks, The organization of these regionsshould be insti- facilities such as hospitals and correctional worked out with the cooperation of theStates and tutions, and multistate water and pollutionall Federal Government The organization maydiffer might be cooperatively addressedwithin the re- from region to region to take into accountthe dif- gional framework The delineationof area devel- ferent situations in each region. Once formed,these opment districts that cross Stateboundaries also regions should be eligible forcomprehensive regional could be accomplishedwithinthe planning assistance. And theyshould,be given the framework. authority to submit project proposals to theFed- To obtain maximum benefits frommultistate eral Government for grants and loansfor multi- In regions, several other innovations are necessary. state project& a later chapterin this report the Commission recommends that all Federal menial offices beplaced Helping Communities HelpThemselves in the same location for each region. Thebound- aries of these regions should coincide withthose Few counties, towns, and citieshave sufficient of the regions for multistate planningand pro- resources to alter significantly theirconditions, graming. This not only would allow theStates to growth rates, or potentials. They all toooften plan and program in a regionalsetting; it would lack professional help in their planningand they also provide a vehicle for the Federal Government lack the funds to mount programsappropriate to to cooperate fully with the regions, andfacilitate meet the problem& Furthermore,the boundaries the coordination of programs which involvethe of these units are no longerrelevant for the pile - Federal Government. Furthermore, it would proposes of stimulatinggrowth and of providing vide a consistent set of regions on which an eco- facilities and services to meet the needsof people, nomic information system could be organized. especially the poor. Consequently,the plans and Six& a system could provide the multistate re- programs of: theseentities have not been as produc- gions and the Federal Government with a flowof tive as they could be economic intelligence on which to plan programs The creation of area developmentdistricts is and evaluate their performance. one measure tocorrect this situation. Through Finally, comeideration should be given to making their citation, more relevantboundaries can be the Federal Reserve Districts of theFederal Re- drawn and the area developmentdistricts should serve System coincidewith these region& Federal have under their purview more resourceswith Reserve Banks perform a vital regulatoryand which to plan and program. This is notenough, their service function to the banking community of however. Despite the fact that areadevelopment More- districts as well as to the district as a whole. districts should have more resourcesthan in- over, they already are a sourceof much valuable have the economic information. lir this regard, thebanks dividual towns and counties, they do not could develop data on interregional andintra- resources toprovide the facilities and services regional capital flows, information which is of cru- needed to engage in fruitful comprehensiveplan- cial importance to economic developmentanalysis ning, either to meet the needs of theresidents or 109 to attract industry and create jobs. Aid from the ttibution to the planning process* byfinancing States and Federal Government is essential. This special studies which would add to thequality of section discusses ways of providing and coordinat- the plans and programs. ing these funds. Action without planning leads to waste and even chaos. Planning -without action is an equalwaste Planning Grants and also a. hypocrisy. Sometimes agencies respon- The Commission believes that any area develop- sible for economic development or poverty pro- ment district can profit from well-designed plan- grams will expendtheir resources in planning. ning by knowledgeable planners and district But because of poor leadership, inefficiency,poli- leaders. Indeed, through planning, a district may tics, or other reasons no meaningful actionfor be able to avoid economic and social distress. growth or the alleviation of povertywill result. Moreover, planning should result in the wiser use Sometimes agencies will expend resourcesin the of all Federal grants-in-aid and loans. name of planning (which,for similar reasons, is Title III of the Public Works and Economic not meaningful planning) andmeaningful action Development Act of 1965 provides planning cannot follow. Community and agencyleadership monies for technical assistance, research, and in- must be ever alert to these pitfalls. formation to redevelopment areas and economic development districts. As was pointed out before, Federal Grants and Loans for Public this is a 'curative program only. Section 701 of the Facilities and Services Rousing Act of 1954 provides planning monies to States, counties, municipalities, and other areas. Information currently available indicates that Area development districts must plan and proper capita construction andoperating costs of most gram for their development. public services and facilities are higher inrural areas than elsewhere. Moreimportant is the fact The Comminion recommend that these are of mediocre quality. Central tothe problem is that individual rural political juris- 3. That area development districts be eligi- dictions are too small to provide these basic serv- ble for comprehensive planning grants from ices at reasonable cost and acceptable quality. the Federal Government. Furthermore, in a number of field; healthbeing a prominent example, mostrural areas cannot sup- Comprehenieie planning grants tor all areas port full-time specialists. Present arrangements should be administered by one Federal agency. preclude part-time specialists in most rural areas. Chapter 14 contains a reeornmendation to this ef- Any attack on these problems must circumvent fect. Thus, the agency should handle planning these difficulties. The Commission believes that the grants for area development districts, regions, and. area developmentdistrict, aided by Federal grants other units. and loans, provides a vehicle through which co- Title III of 'the Public Works_ and Economic operative planning, provision, and operation of Development Act also provides for research, train- good quality public facilities and services may, be ing, special Addles, and activities by the Economic achieved at moderate cost. Development Adminisiiation to aid depressed In discussing ways to meet the immediateand areas. These programs should be continued. Fur-. future needs of residents of area development dis- thermore, planning monies currently available to trict, it will be useful to distinguish between the redevelopment areas and economic development urban centers and the rural periphery since each districts under this act should. be 'used to augment has a significantly different part to play inthe comprehensive planning grants and should be process of area development. available only to area development districts con- THE &mat, PERIparar.The overriding objec- taining designated redevelopment areas. tive in the outlying rural areas should be to ensure Planning money should be available from other that the residents have maximum feasible access to agencies as well as the Federal Government. State the benefits of necessary public services. Although and local governments should contribute to the many rural areas are too sparselypopulated to planning process by providing planning funds. support the construction and operation of manyof Private agencies can also make a significant eon- these facilities, the services of the facilities in the growth center can be extended topeople through- The Com mission recommends- out the area developmentdistrict. 4. That neighborhood service centers be ere- To illustrate, in elementary andsecondary edu- ated located conveniently throughout area de- cation the use of mobile teachinglaboratories, pub- counselors, and velopment districts and linked with specialized lic television networks, traveling facilities in their growth centers. Publicly sup- the like, all operating on anareawide basb, could school systems. ported transportation systems should be con - materially strengthen many rural nected with these centers. The Federal Govern- Rural health facilities could beupgraded through clinics, staffed ment should move immediately to establish creation of fixed and mobile health pilot neighborhood service centers in selected regionalhospitals by personnel from district or area development districts toact as demonstra- located` in or near the service growth centers.The principal purpose of the healthclinics, which tions and laboratories for experimentation. could be staffed partially bysubprofessionals, Four Federal agencies currently are experiment- would be the treatment of elementaryhealth needs. ing with a neighborhood centers pilot program in Cases requiring more sophisticatedattention would 14 cities. The Commission believes that a similar be referred or transported tothe base facility. pilot program should be established in selected Similar arrangements could be madefor the ex- area development districts in rural areas.The goals tension of other types of services.Police and fire of this pilot program should be to investigate the protection, libraries, public transportation,and range of services needed, the problems ofcoordi- highway construction and maintenance are exam- nating them, necessary linkages with facilities in ples of other services that wouldreadily accommo- the district center, and the costs of the neighbor- date tie-ins of this nature. hood centers. Private agencies and foundations Considering the general scarcity of publicfacili- also should be encouraged to participate in the ties in rural areas., and their costs,it is doubly pilot program so that ideas from all segments of uti- important that those which are there be fully society are brought to bear. lized and conveniently located. Federal agencies with grant-in-aid and loan pro- placed Neighborhood service centers should be grams should. encourage projects proposalsfrom in convenient locations throughout thedistrict, area development districts for such centersand probably in towns and villages satellite to thedis- transportation systems, especially in poverty- believes that trict's growth center. The Commission stricken areas. many of the necessaryservices might be located Trim Gitowni CENTnus.Investments in the pub- in a single building or complex of buildings;for lic services and facilities of the growth centers the example, the, primary and secondary school, themselves should be of different, though comple- health clinic, a day-care nursery, thebranch li- mentary, character. The rapid rates at which these brary, an office of the employment service, and coin areas are likely to grow suggest thatinvestments in munity meeting rooms. Costs could be shared by these centers merit high priority. For the same the various agencies and the basic services would reason, it is important that theseinvestments be be centrally located, convenient to the residents, predicated on carefully reasoned planning. and close enough to each other so that there could The public facilities of the growth centers should the be close cooperation and coordination among serve residents of both the center and theoutlying agencies represented. periphery of the area development district. Spe- lack Since many people in isolated rural areas cialized services requiring a sizable uses base would transportation, they are unable to take advantage be located in or near the center. These specialized of of health, training, and employment services, or services might include a major airport; a regional recreational and cultural facilities located several hospital; a specialized vocational training center; miles away. Thus transportation from outlying a college or university; majortelevision and radio areas to the neighborhood centerand to the growth stations (including public stations) ; a comprehen- center is needed. A low-cost public transportation system based at the community centers should be I The pilot program is administered by the Washington Interagency Review Committee composed of representa- provided. In some rural areas school buses in free tives of the Departments of Housing and Vrban Develop- hours could be used to transport people to and ment; Labor; and Health, Education and Welfare; and of from the neighborhood service centers. the Office of Economic Opportunity. 111 sive library; the centralized planning and coordi- velopment districts. Or additional legislation could nating agencies for public education and for high- be enacted to achieve for area development=dis- way construction and maintenance ; and police and tricts outside metropolitan areas what has been fire protection. Facilities functioning in the out- achieved for metropolitan areas. Planning and lying portions of the district would be serviced programing within the area development district through these agencies and facilities. context would, thereby, be encouraged. . In summary, public facilities ini area develop- Areas suffering from severe poverty will require ment districts should be planned so that the cen- a more concerted boost thm will be provided tral, specialized facility is located in the growth through the array of general grant-in-aid pro- center and smaller branch facilities are strategi- grams covered by this legislation. Assistance for cally located in neighborhood service centers these areas is lodged under separate authority throughout the periphery. Particular attention which requires modification of a similar nature. must be given to ensuring that the benefits of these services reach all district residents, including those The. Commission recommends- in outlying areas of the district. 6. That the Public Works and Economic De- Title II of the Demonstration Cities and. Metro- velopment Act of 1965 be amended to provide polity(' Development Act of 1966 requires that "all grants for developing adequate public services applications made after June 30, 1967, for Federal and facilifies in area development districts loans or grants to assist in carrying out open-space afflicted with severe poverty. land projects or for the planning or construction of hospitals, airports, libraries, water supply and Qualification for these grants should be con- distributionfacilities, sewerage facilities and tingent upon (1) the preparation of an acceptable waste treatment works, highways, transportation area development district plan and (2) the satis- facilities, and water development and land con- faction of explicit req.-drew:tints concerning the servation projects with any metropolitan areas" 8 area's fiscal effort and its degree of need. The cri- be reviewed by a deignated areawide planning teria presently employed in designating redevelop- agency. Projects which are consistent with an ac- ment areas would be suitable for ascertaining the ceptable areawide plan then become eligible for degree of need, Upon satisfactorily meeting these supplementary grants under Section 205 of the conditions, any location in the area would become act. eligible for grants covering up to 80 percent of the The Commission applauds the areamide orienta- cost of projects consistent with the area develop- tion of the act and the bonuses to projects which ment district plan. The supplementary grants to are consistent with the areawide comprehensive projects which are consistent with the plans of the plan. Such provisions should be made available, to area development district should be applicable in all area development districts. these cases also.

The Commission recommends- Helping Communities Attract Industry Too oftert migration is not a solution to the un- 5. That supplementary grants, in addition_ to deremployed or jobless rural, poor. Claude Brown the usual Federal grants, be awarded to any, asked: "Where does one run to when he's already in federally aided project which is consistent with the promised land ?" when he described the migra- the comprehensive plans of area development tion to -Harlem of the southern rural Negro as a districts. psychological journey "to the promised land." (6, p. viii). The promised land turned out to be This might be achieved by amending Title II, just another desperate, isolated ghetto, albeit Section 204 of the Demonstration Cities and Met- urban rather than rural. ropolitan Development Act to include all area de- The crucial problem is jobssteady, well-paying jobs--not only for rural Negroes but for most of "Demonstration Cities and Metropolitan Development the rural poor. Too often the only option open to Act of 1966" (r.L. 89-754, 89th Cong., 8.3708, Nov. 3, 1966, the poor is to journey elsewhere; too often "else- Title Sec. 204). Metropolitan areas are defined as SMSA's unless otherwise specified by the Secretary of where" is the urban ghetto; and, too often, steady, Housing and 'Urban Development. well-paying jobs are not available there either.

112 Migration to the urban ghettos of our largest industrial facilities and sites to rent tonew and cities is not, a solution for the rural poor unless expanding industries. employment opportunities are available. The evi- Municipal industrial development bonding has dence presented earlier indicates that manufac- grown rapidly in recent years and has stirred turing and trade are moving from the central cities much controversy. Twenty-three States allowed to the suburbs of our large metropolitan areas and such bonds, of the full faith and credit or revenue to smaller metropolitan areas and larger towns. types, as of 1963, and other States are considering Fruitful employment in smaller cities and towns enabling legislation. throughout the country, as well as in and near The main issues in the controversy are their poverty-stricken rural areas which show economic taxation side effects, the dangers to specific munici- potential, is an effective solution. Positive steps palities of overencumbering themselves, and their should be taken to attract more jobs to these loca- competitive effects. The taxation issue arises be- tions. These steps should not simply relocate jobs cause the interest on such bonds is tax exempt; from one place to another. The jobs must. be new; thus the locating industry reaps an indirect Fed- more of the national growth in employmentshould eral subsidy in addition to lower interest rates. be directed into the smaller cities and towns in and Some argue that since the Federal Government near depressed areas. does not have a voice in deciding whether the in- The measures recommended earlier in this chap- dustry should locate in the municipality, it should ter will stimulate industrial development indi- not have to subsidize it (7). rectly. These are not enough. The energies of pri- There is some concern that communities may vate industry should be engaged directly as well overencumber themselves by floating industrial de- as indirectly ; private capital should bestimulated velopment bonds or giving concessions on local to flow more rapidly into lagging regions and areas taxes. The results of too generous subsidization with economic potential. might prevent the local government from fmanc- Direct industry subsidies lower the cost of lo- ing needed public facilities and services, or prevent cating in one area versus another. If the subsidies them from subsidizing other industries. However, are substantial, industry can be stimulated to ex- advocates argue that a new industry brings new pand or locate in otherwise high cost locations. tax revenue through existing taxes and in any Of course, given large enough subsidies, any loca- event other taxes can be levied. tion can be made attractive to industry. But in Finally, it is pointed out that since the practice very high cost locations, once thesubsidies cease, of issuing such bonds is spreading rapidly, soon no more industry will locate or expandin the area. all communities will use them and the effect of the And those that are there will slowly close down subsidies on the location of industry will cancel and move to lower cost locations. There are some out. Or, what is more likely, more affluent com- poverty-stricken rural areas which are not eco- munities will outbid depressed communities and nomically viable. Industrialization in these areas the purpose of the subsidies will be contradicted. is not a feasible solution. Industrial location decisions are very complex, If enough industry can be brought into an area the final result being a blend of a host of factors. which is suited to industrialization, other indus- They include labor costs, transportation costs, tries (for example, manufacturing, business serv- availability of and proximity to markets and sup- ices, and trade) will be attracted to the area. Then plies, the presence of public facilities and commix. the area will be in a position of self-sustaining nications, and the overall' attractiveness of the growth and direct industry subsidies will cease to community as a place to live. A local community be needed. must consider these and other factors as it delib- erates whether to grant a subsidy to a firm and if While both private and public agencies currently so, the size and type of the subsidy. The Commis- offer subsidies of one kind or another, the Com- sion urges local governments to consider carefully mission is concenied primarily with those of pub- the advantages and disadvantages of these devices lic agencies. Subsidies offered by local, State, and before employing them. Federal Governments are of four broad types: out- Because of the inadequacy of industrial develop- right grants, low interest loans, variousarrange- ment subsidies at the Federal level, the Commis- ments designed to lower taxes, and the building of sion believes that local subsidies are vital to the

118 development of local areas. However, when the went in poverty-strieken areas, urban and rural. Fedeval subsidies that are recommended later in This legislation should be placed in the context of this chapter are put into effect, certain local sub area development districts. .dies should be discouraged. The ommieeionreeommencis-- The anionieeion recommenti 8. That any location in area development dis- 7. That local industry subsidies be districts which include redevelopment areas be couraged, if they either lower the ability of eligible for industry grants, loans, and loan communities to finance and pay for needed pub- guarantees under the Public Works and Eco- lic facilities and services or threaten their tax nomic Development Act of 1965. revenues.t Such grants, loans, and loan guarantees typically The Federal Government, for instance, could cover part of the cost of land acquisition ; the costs remove the tax exempt status ofmunicipal indus- of bnildings, machinery, and equipment; and trial development bonds. initial working capital. These subsidies* are most The crucial point regarding the use of local sub- attractive to firms. that find it difficult or impossible sidies to influence industry location is that any to borrow in the private capital markets at prevail- community in any State with enabling legislation ing interest rates. They are likely to be new ven- can grant them. Prosperousand depressed com- tures and small companies which are expanding. munities' alike can make use of theni and the result Large corporations typically have more access may not be thecreation of jobs where the jobs are the private capital market than small companies needed--in or near potentially viable depressed and new firms and may finance new plants at least areas. Thus, if our nation wants to stimulatein- partially out of retained earnings. Tax incentives dustrial development in specific areas and regions, for locating in smaller cities and towns may be stimulation should come from and be administered a greater stimulus to large corporations than the by the Federal Government. The Commission present subsidies of grants, loans, and loan believes that industrial development of the smaller guarantee,s. cities and towns of the country is essential, espe- Bills have been introduced in Congress which cially in our currently lagging regions. provide liberalized investment tax credits, accekr- Furthermore, certain of the Commission's rec- ated depreciation schedules, better carry forward ommendations may raise the cost of locating in and and carry backward provi, ions, and deductions near depressed areas and tend to erase existing in- on wages and salaries paid to iow income persons centives to locate them Chief among these is the if a company locates in depresied rural areas.° recommendation for a uniform, national minimum However, the bills establish a set of designated wage. It will partiallyerase labor cost differences depressed areas separate from the redevelopment between the South and the rest of the country and areas established by the Economic Developnent hence retard the movement of industry into our Administration. Furthermore, the bills give the poorest region. However, it may speed the adjust- administration of the program to the Department .14 ment of areas which do not have the potential for of Agriculture. Another bill grants Similar tax* industrial development. But for areas which do incentives' to industries locating in poverty areas have industrial potential, recommendations are of large SMSA's (over 250,000 population), and needed for industrial subsidies to re-establish their gives its administration to the Department of cost advantages and enhance their growth rates. Housing and Urban. Development Like the bill The Economic Development Administration ad- for rural areas, it would establish designated areas ministers subsidies for industry location in de- separate from redevelopment areas." pressed areas. Redevelopment areas and economic The creation of additional designations for de- development districts are eligible for industry pressed areas (rural or urban), the fragmentation grants, loans, and loan guarantees. These subsidies, of the administration of industry subsidies among therefore, serve to stimulate industrial develop ' See, for instance, Senate Bill No. 2134, 90th Congress, tSee comment by Robert A. Roessel, ar.,, at end of this 1st Session. chapter. 10 Senate Bill No. 2488, 90th Congress, 1st Session.

114 ------. V V' V. VV VV VVVVVVV.V VVVVVVVVVV VVVVVVVVV _ V 'V V

'many departments oftheFederal Góveimiient,tbe durenCnt jfld V location pratices ha'e played'a restriction of the tax incentives only withiu depart in the development of the weóitb and.indus- V

V . :

pressed areas, and the exclusioii ofpoveEty areas trialization of these areas. V SMSA's SmaI1ethau 25O,OO4 populationapp$r P9 date little has consciously been done to stimu- needlessandunwise to the :Comrnissión. The late VV:laggihg regions and areas through Federal criteria for redevelopmentareas should be need to próctirémént aiid location practices. VfiVY 'Man. identify depressed areasurban aiid ruraa' alike. pover.Policy No. 4 encourages the placenieiitof

One. agency rather thanmany should adminiSter defense contracts with'ffrmnsirtlabór surplus areas .

. the certification procedures for taxi incentivepur- V désiged by the Department of Labor. Aiid the . pOses as well as other direct subsidies to stimulate General Services Administration encourages firms industrial development in specific locationè.Fur- in VhLr Srplüs areas and redevélopmént areas tliermore tax incelitivesto stimulate indiistrializa- to bid:on any items of" supplies and equiprneilt It tion within every depresed area Is not wise. Some buys.1 Theevidence suggests Vtb these have bèn V

V , ¶ V . V iné1etive. V of théscareaswouidbenefltmore from the indus- . .trial development of towusand smaller citiesnear (*óverñtheiit procureméni'and locaticn practices and wfthin commuting distance of them. should aid in the development of particular towns V Finally, tbeconissionisconcenE.Vthatindus and cities. But tbe should only complement, not trial development within.'urbanghettomay trig dominate, the private, sector. Specific government ger more senseless migration of the rural poorto needá V for SUPPlieS atid' naiówer' are vry un-

equally depressed and socially;' isólatd V urban stable This is particularly true of defense nd ghettos. Industrial development 'of,: mid: jobcrea- spate needs. Progr is ;Coflgrsssional tjon in smaller cities:andVtowns closer to where appropriations, international. relations, and tech- the rural poor now live andwithincommuting, nological.change account for this instability. distance of tbefr'reMdences is the wiser alternative. Detroit and Oak Ridge are two examples of. But ta depcn4ence V incetitives. are powerful. tools to influence on Federal Government cmploy!uent .

V industrial location and shOuld be used V and purchases.. Detroit exp&ienced .dillictdties. .. because of the shift. jn. defense emphasisfr V' The Cmnzôornmends V mechanical equipment tO jet and missile systexis. 9. 1'hat tax incentives suchasliberalized in- The West StVf. cOurSe,V.proSpered by this shift. Oak Ridge, Temii,.the site of much Ato iic Energy Vvment ta* credits, accelerated depreciation ': V Commission activity, espeiaIl chedules, and broader: carry forward-carry V .iiüring World. backward provisions be given to firms locating War'. U, bad a peak population of 75;000 hI or expandhg in area development districts As f V 1965 its populatiofl was 000O.12 .. which include redevelopmentareas. The Federal Vove.V.e1t, skould contribute V more thail it now does toward guiding area and V Inaddition to subsidizing the private sector, and regional development. This goal should be included

V., . extendIng grants,and loans to State and locaigov- in a positive way with Other goals influencing

V erninents, the Federal 1]iavermneut can VinfiueI Federal. ycurement and. location pctices. Local the gowth rates ad prosperity of lagging as :1 and State governmentsshouid V 4o likewise, ..and regions through its. own.decisionson 'locating. although their employment locatiqu decisions will V newFederals installations and. oil purchasing be more important thantheir procurement goods *nd services. The Federal Government's decisions

location .:aM procurement practices: do V sighifi-

V V The V cantly stimulate particular areas and regions Tet Oonocornrnen from the fragmentarr .Vevjden(e available, it np- 10. That the Federal Goyernment use a por- peais that Federal procurement practices gener- tion of. its procurement expenses and Invest- ally benefit the wealthier, more. denselypopulated V areas. o the ountry This is particularly true of t,See. Exeeutke Order Nó10fl3,:23 }le Reg. '5O1.. tefense.oxpenditures (8, 9,iQ)V..This is to be (1958) ;. and, Federal Property and .AdrnIn1strathe Serv- ices 4et of 1949 as amezided, P.14. 81-152. 'eqpeted, however; beeause the wealthy, densely V ' 1flüreau of the Census, tLS. 1)ept.. ° nmeree and popubttecl areas contain the bulk of the nation's Oak Ridge' Operations, Atom1e Energ' C6mmIioEi, Oak industrial V activity. And, of course, Federalpro- Ridge, Tenn. . V

V 270-IN O--47------9 V i15 V

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. ..

flt: dituret. or 'new, staHaons to State au1a1 gonmenth st. be üanciaU sUmu1*tt rewtb inparticular lagging regions viabk Their present revenue-systems are plague4 andareas. with a number of problems 'which prolubIt them from adequately meeting the needs of their resi Th Fedeia1 Government could empiQy a num- dents. The Commissoi has conceutrated on only a bei' of devices in using its budget to stimulate fwoftbeouttuidngprob1eins. growth u lagging areas. For instance,a portion Local tax problems include the small sizeof r of the supIies UieFetlerai Government buys couid tazhg jurisdiebons, mefficient andinequitable tax be purchased only from Thinslocated in specilled admnustration, and an unsatisaetory distribution area development districts AnotImr device would of the costs and beitefits of pubiicly financed fa- be to guarantee that Federal contracts will be let cilities and programs. The iiiufficient size of most for a certain number o years in particular lagging tazmg jurisdictions, however, lies at the root of

: . types of :ea development .distjictif selected many of UIè j*oblezns : . .. . . industries locate or expand there. Fually, the The beneilts of a publicly financed facility or

growth zers of lagging area. .. . development dis- program often "spill. over":tlte boundariesof the trb*,s could be given preferential consideration as tax jurisdiction ivbich finances tbem aiid are en- lcatiois for new Federal acilties joyed by residents of areas which do not contribute to the support of these facilities and prograniL . .

.hlprovIllg .. ; PUbhC Revenue Sources Thus., rural residenta contribute to the edwation

Area and regional development is expensive It Of an. individual who moves to another area to lire and work. Urban residents spend their weekeids in is espeially so m the 1aggng and poverty-stricken

: at public recreation areas their : äiess and gio Where the problems are to raise '" tLZS do not, :SUPP0le Afld mt1 commuters helP : the quality and' a&éssibility Of existitig public overbuiden city streets which are numtamed and and services as well as 'o introduce badly by city taxes1 Increased mobility, a reliance needed new ones, Public revenue from all levels of P°' °'k PIOP3$Y tXB at th ]oci1 level, and the in.- government is required. sullicient size of local tax jurisdictions cause and Catego rical Federal grants and loans arc essential aüd Should be iñréásed asiiewEeeds arise. willmcreasesuehoccuxrences. They e±iphasize and directly support programs to The problem, of course, is that aU those who which society assigns high priority They bring benefit from publicly financel facilities and serv- to lagging regions and areas specific programs ices cannot contribute to the contruction ud opei- most needed to stimulate growth They serve as ation of the facilities through then' taxes because innovating tools hi the hands of the Federal oov- they live outside the tax jurisdiction. Mid those eriment to test programs to meet n5w needs. And who are taxed are rciuctaut to tax themselves for they are persuasive n involvrng State and local facilities and services from which they may not governments in the tasks these mits have beneflt neglected. Property taxes now account for nearly 90 pete- cent of all local tax collection. They owe their Tht categorical Federal grants and loans meet 1Iortance at tins level to bemg one of the few needs felt at the national level only. Theyare ot responsive to the unique needs of particulat States and. localities which are felt at the State and local tinil competence if it is to be done effleléntly levels but are not general enough to arouse national and equitably; in too few cases are efficiency and mterest and support. Furthermore, through the equity achieved . usual matching features, they command State and .. Fürtbrrnore, beat taxing isutboritlee are Se- local revenUe, thereby reducing the flexibility verely restrained in their application of local taxes whi4i States and localities urgently require in by State constitutional and statutory limitations. meeting the specific needs of theirresidents. 1n ManyStatesrestrict themaximum'tax rate of addition, State and local governments typically local governments to. a speeifled:percentagè of as- do not hav&the revenuesto modernize their adinin- sessed valuations; some also limit the amouit of istratiyo p*ctzce$ and pay salaries to remain taxes a local government can levy to make prin- competitive with business and industry cipaland interest payments.

.11

- The State-imposed limitations bear a heavy rapidly to growth as doesthe demand' for public Share of the responsibility for the recent upsurge facilities and services. in the number of spocial districts. By creating these Moreover, some areas of theUnited States lack districts, local governments are able Ito circumvent the resource base required toprovide enough rev- State taxing restrictions. Thus, State governments enue to even come ~close to satisfying localneeds. have unwittingly contributed to the growing com- For these depressedareas, local tax reform alone plexity and inefficiency of a badly fragmented sys- 'offers no meaningfulsofution. Assistance from tem of local governments. other more affluent regionsis the only practical short-run solution. Some of these areas arealready The COMM488i017, rearm/mai/dig making above-average tax efforts; yet,because of the small tax base they have todraw upon, they it That State governments be encouraged are largelyincapable of providing the public to assist in the improvement of local tax sys. services and facilities so badly needed. tents by (a) enlarging tax jurisdictions, (b) Many State and local governments do notmake standardizing taxation procedures, and (c) re. as great a taxeffort as they should with the taxes moving or easing constitutional and statutory A their dispose. Thus their revenuesystems are limitations on the taxation and borrowing.au- unproductive. Equally important is the faetthat tholity of local governments. many. State andlocal taxes are inequitable because they aro not based on theability to pay. Tax re- State governments can facilitatethese reform must entail not only thecreation of produc- forms by providing technical assistance to local tive revenue systems but equitable ones aswell. governments. The Commission believes thatthe Federal Gov- Even with local tax refoini of the types recom- ernment cannot be neutral withrespect to State mended, State and local governments are plagued and local tax reform. It cannotremain indifferent with inequitable, unproductive, and unresponsive to unproductive revenue systemswhich do not revenue systems. These problemsin combination yield enough revenue to support theresponsibil- prevent State and local governments from pro- ities of State and local governments hisupplying viding comparable public services to all their needed public facilities and services.Nor can it residents. view with equanimity heavy State andlocal tax Most of the public needs associated with growth burdens which partially offset federallyfinanced relate to functions traditionally provided by State aid to the poor. The FederalGovernment should and local governments. The magnitude of State make flexible grants to State governments.These and local needs is reflected in the rapid growth of flexible grants should be awarded on4 toStates State and local expenditures. Between 1948 and which have equitable and productive revenue so- 1964, State and local general expenditures rose by tow. Various techniques areavailable to deter- ,$5g billion while Federal general expenditures for mine the equity and productivity ofState and civilian purposes rose by only $14 billion; the num- local revenue systems. See, for instance,Shannon ber of State and local employees increased by 90 (12). The flexibility of the grantsplus features percent compared to an increase of N percent in of the grants which offset part or allof the revenue Federal civilian employment; and State and local foregone by shifting tax burdens frompeopliwith per capita debt rose by $355 compared to adecline low' incomes are adequate to .stimulate Stateand of $91 of Federal per capita debt (ii, pp. 3) . local tax reform. For the most part sales and property taxes are the domain of State andlocal governments while The Cotrundeeionrecommende, the Federal government has primary claim on the 12. That the Federal Governmentmake fleki. income tax. Sales and property taxes respond more bit grants to States based on theequity and Slowly to national and area growth than does the productivity of their revenue systems to stimu- income tax. Although many States levyincome late the creation of equitable andproductive, takes, they cannot rely too heavily on them because State. and local revenue systems.t. of the much greater use the Federal Government tSce comments by RobertA. Rowel, Jr., and by Jame makes Of the income tax, Thus, the revenuesof 0. Gibson, Vivian W. Henderson, and Miles0. iiitaniey State and locale government do not respond as at end oithis chapter. 117 -:References growth. I do not accept the qualifications in the

(1)DOROTHY K. NEWMAN. THE DECEMBAVIZATIONOF sentences preceding the recommendation since it JOBS. Monthly Labor Rev,,-May 1967. is predicated on a set of .circumstances that at best (2) DANIEL CREAMER. CHANGING LOCATIONOF MANUFAC- TURING EMPLOYMENT. PART I : CHANGES, BY TYPE OF will be the exception and not .the rule : I feel it LOCATION, 1947-1961. Nat. Indus. Conf. Board, Inc., would make better sense morally and practically 1962. (8)JAMES BRYANT CONANT. THE AMERICAN HIGH SCHOOL to base recommendations on reality. TODAY. Nevv York, McGraw-Hill, 1959. (4)ADVISORY COMMISSION ON INTERGOVERNMENTAL RELA- TIONS. PERFORMANCE OF URBAN FUNCTIONS : LOCAL Memorandum of Reservation by Robert A. AND AREAWIDE. Washington : Government Printing Roessel, Jr., Concerning Recommenda- Office, September 1963. COMMITTEE FOR ECONOMIC DEVELOPMENT. MODEM/IR- tion 12 .'ING LOCAL GOVERNMENT. New York : July 1966. CLAUDE BROWN. MANWIILD IN THE PROMISED LAND. I object to recommendation 12 because it does New York; Silgnet Books, The New American Li- not adequately insure that the grants from the brary, Inc. ;1965. ADVISORY COMMISSION INTERGOVERNMENTAL RELA- Federal Government to the States go for the TIONS. INDUSTRIAL DEVELOPMENT BOND FINANCING. people and purposes intended. As the recommen- Summary of Report A-18, August 1965. (8)ROGER E. BOLTON. DEFENSE PURCHASES AND REGIONAL dation is worded it appears to be primarily con- GROWTH. Washington : The Brookings Institution, cerned, with tax reform and that grants are made to 1966. U.S. CONGRESS, JOINT ECONOMIC COMMITTEE. BACK- individual States as a means to encourage such GROUND MATERIAL ON ECONOMIC IMPACT OF FEDERAL reform. PROCUREMENT-1966. 89th Congress, 2d Session. March 1966. I am completely in favor of tax reform which ARNOLD H. RAPHAELSON. FEDERAL EXPENDITURES TO would place a greater tax responsibility on those STATES AND REGIONS : A STUDY OF THEIR DISTRIBU- TION AND IMPACT. 89th Congress, 24 Session. who can better accept that additional commitment. June 29, 1966. I support a nonregressive tax system which will ADVISORY COMMISSION ON INTERGOVERNMENTAL RE- LATIONS. A COMMISSION REPORT : FEDERAL-STATE CO- lessen the burden on the poor. ORDINATION OF PERSONAL INCOME TAXES. A-27, Oc- But I do not believe the present recommendation tober 1965. JOHN SHANNON. CONSTRUCTING A HIGH QUALITY STATE guarantees that the grants generated by such re- AND LOCAL REVENUE SYSTEM-STATE AND FEDERAL form will go to those programs .directed at areas ROLES. Speech read before the National Association of State Budget Officers, Lexington, Ky., Aug. 9, and people in greatest need. 1967. The voices of the rural poor are weak and often Memorandum of Reservation by Robert A. unheeded. The axiom "the squeaking wheel gets Roessel, Jr., Concerning Recommenda- the grease" is true, and the forces in competition tion to receive the grants will be vocal and well organized. Pressure and lobby groups will speak In my estimation recommendation 7 is notprac- tical for the conditions that exist at present. It loudly and clearly in demanding that the money presupposes a situation wherein Federal subsidies go for programs they support. The rural poor and will be in effect so that there will LRno need for the city slum dwellers will be bypassed. Proper local subsidies. I do not believe we are that close safeguards must be developed, including perhaps to realizing heaven on earth and therefore feel categorical grants, so that the money goes toward the recommendation is inappropriate at this time. programs designed to assist the rural poor. I do Surely all agree with the need to strengthen the not feel the present recommendation includes these ability of States to meet the industrial andem- safeguards. In recommendation 14, chapter 14, ployment needs in each State. specific safeguards are outlined for a grant-in-aid However, I am not convinced that the present program. I feel this protection should, be incorpo- recommendation will assist rural poor areas to de- rated into this recommendation, velop in fact, I fear it may be used to hinder that development. I do believe local industry subsidies Memorandum of Reservation by James 0. are in many cases the only way rural poverty areas Gibson, Vivian W. Henderson, and Miles can hope,to attract industry so vital to the growth C. Stanley Concerning Recommenda- and development of those depressed areas. There- tion 12 fore, I do not want togo on record supporting a While we recognize the potential benefits that recommendation that may interfere with this might accrue through augmenting the revenues of 118 the States by noncategorical grants, wehave res- formuli for making such grants : whatconstitutes ervations about the wisdom of recommendation 12. an equitable andproductive revenue system. n .one We remain doubtful that the conditions under State may not be in another. Thiswill depend which the grants will be awarded will be successful upon the particular taxeslevied- in.each State and in stimulating tax reform at State and local levels. the economic conditions in each. Unless the stimuli are substantial, the grantswill More importantly, we fear that some Stateswill be given to States on the basis of the currentequity use the grants to.perpetuate social and economic and productivity of their systems andwill not discrimination along racial and ethniclines. And encourage further reform;States' revenue systems we doubt thateither the rural or the urban poor which are unproductive and regressive will remain will receive the benefit of noncategorical grants, so. Furthermore, itwill be difficult to establish fair given their representation in State legislatures.

119 Community Organization The basic principle underlying social legislation Thus, we had best begin by agreeing that the in this country is one of helping people and com- rural society we have known for the past 100 years munities help themselves. None of the programs is no longer possible. The world has grown more recommended in this report will solve the prob- complicated and more interdependent. Relation- lems of rural poverty unless the people themselves ships, both individual and group, have become become involved and concerned. In the final anal- more complex, extending further, and involving ysis, it is up to the people through proper orga- more people in more complicated ways. Wehave nization and action at the community and neigh- to recognize that our hamlets and villages are parts borhood levels to see that opportunities become of a larger community which must include urban realities. The purpose of this chapter is to explore as well as rural elements if either is to thrive.If avenues by which the members of a community we accept this change in the ruralcommunity as can organize and take action to help themselves. a fact, which it is, we then have to shape our In past times, when small homogeneous rural policies and programs to fit the new fact. villages blanketed the nation, people tended to identify with their immediate locality. Most vil- Citizen Involvement lages possessed a strong "community spirit"; interests as well as problems were shared within these As the dimensions of community have changed, small areas. There was no compelling reason for so also has the role of the citizen. He has alocal the resident of one town or county to be directly responsibility, as always. But he also has an en- involved or interested in what was happening in larged responsibility toward his larger commu- an adjoining county or in the nearest largecity. nity. In addition to participating in local elek- In most respects, each village was a community dons, his knowledge and advice are reeded in the complete unto itself. planning and decision-making that occurs at the It has become increasingly obvious that com- areawide level. munity must now be defined in terms of an area It should go without saying that participation that encompasses several counties grouped about a in the electoral process is the right and respon- town, city, or metropolis. It is closely akin to the sibility of every citizen. The fact is, however, that area development district described in chapter 10. the poor are frequently denied the opportunity. Within each multicounty area, one can identify The fulfillment of this right is basic to any effort subareas, or neighborhoods, each of which is scat- at community organization and, for this reason, tered about a, smaller town or city. deserves high priority. Every effort must be made The geographic size varies from one commu- to see that all barrierslegal, informational, in- nity to the next. Community boundaries cut across stitutional, and economicare eliminated. political jurisdictionscity, county, and State Ways must also be sought to draw the individ- and sometimes overlap. Community includes those ual into a closer and more meaningful relationship who share common interests in the significant ac- with the governmental process beyond merely par- tivities, public and private, that reach the local ticipating in elections. Techniques must be de- level. Its geographic dimensions are determined veloped to bring the major issues of the day before by the degree of economic and social integration the people and, in turn, to accurately convey the and "by the extent to which important items in people's judgment back to our public servants. the lives of the people are tied to specific loca- Government has an obligation to reflect the views tions" (/, p. 15).1 and the needs of all the people, an obligation it 1 References, indicated by italic nunibers in paren- has not always honored. We urge elected officials theses, are listed at the end of this chapter. at every level of government to give increased at-

121 tendon to improving communication between -=to improve their outlook -on-life-and their ability- themselves and their constituents. -to have some control-overtheir= own destinies. Potentially, the citizen can contribute much Neighborhood organizations canalso _provide.a more in solving problems at thecommunity level useful forum for conductingeducational-programs than he usually does. First, lie can be of invaluable to assist the poor. While we mustcontinue to rely help in problem identification as well as in the on the publiceducational system for a major con- planning process. Local people, being closest to a tribution to the solution of povertyin the long- problem, often view it differently and see implka- -run, moreimmediate needs roust btr-met-in less tions that might otherwise be ignored. Their ad- conventional ways. Adult education atthe neigh- vice can be indispensable on matters of the social borhood level in homemaking,health care, citizen- costs and benefits of proposed programs. Second, ship, family planning, literacy,and vocational local people can contribute significantly by keep- skills is sorely needed. Throughorganization in ing government officials on their toesprodding the villages and the crossroadsettlements, these them when they become lethargic, reminding them needs can begin to be met. of their proper role when they become unrespon- Finally, neighborhood organization canlay the sive in their duties. Finally, local leaders can pro- groundwork for representationof the poor at the ride an essential communications link between the higher, decision-makinglevels of government. neighborhood and the community at the levels Most major community interests arerepresented where decisions are made. in the political process, oftenthrough several or- Still, the foundation of citizen involvement ganizations. The poor are anobvious exception; ultimately rests at the local neighborhood level. they have been disenfranchised.Organizational Only by reaching out into the shantytowns, the efforts for this purpose must bestarted in the hollows, and the isolated villages is it possible to neighborhoods, though they must notbe allowed reach the rural poor. Communication between the to stop there. rural poor and the remainder of society is .ex- These are some of the tasks that canbe accom- tremely weak. If the programs this Commission is plished through organization at theneighborhood recommending are to reach the people for whom level and through the mobilizationof local re- they are intended, more effective communication sources. Mostexisting community development must be established between people and govern- programs areorganized along these lines. Yet, im- ment. The best programs will result from a careful portant as these efforts are, they arenot enough. melding of the views of those experiencing the Many of the issues in which the poorhave a vital problems and those vested with the authority and stake are not decided locally; manyof the re- responsibility of program planning and execution. sources required tocombat poverty are not avail- Organization at the neighborhood level can pro- able locally. If citizen participationis to achieve allowed to cul- vide valuable assistance in accomplishing this. its fullest potential it must not be extend to Furthermore, neighborhood organization can minate in the neighborhoods but must help local people in accomplishing certain specifi- the larger community as well. cally defined goals which, despite their limited Present Efforts at CommunityOrganization nature, contribute to a better life for those in- and Development volved. The construction of elementary water supply systems, neighborhood beautification, and the As of 1957-58, there were anestimated 14,000 building of neighborhood centers are examples of organizations whose prime concern was com- projects that are practicable for people acting munity and area development (2, pp.15-19). This locally. included almost 2,000 community development Through involvement and participation in ac- corporations and nearly 5,000 local chambersof tivities of this nature, the poor can begin to cap- commerce and boardsof trade, in addition to some ture a sense of belonging and responsibility. The 3,100 local planning and zoning boards.However, poor are lacking in more than material goods. many of theseeffortsare not"community" They suffer from acute feelings of helplessness oriented since they are often concerned withthe and insecurity. By giving the poor a voice and a problems of a single function or interestwithin part in local neighborhood projects, we can begin the community.

122 Two Federal agencies have madeconcerted at- agency itself;for many others, the CAA acts tempts within recent years toorganize com- merely as a broker. In the lattercapacity, CAP munities, at least partly for the purposeof com- serves as aclearinghouse through which local poverty pro- batting rural poverty.. These agencies arethe Office needs are matched with all Federal of Economic Opportunity throughits Community grams. The rangeof programs for which the Action Program and the Department ofAgricul- CAA's have assumed directresponsibility include ture. Though each has its owndistinctive method remedial reading, literacy instruction,job train- of operation, the two organizationsfrequently ing, employment counseling,homemaker services, and legal share common objectives. health services, child development, services. The Community Action Program The Department of Agriculture Since its establishment underTitle II of the Economic Opportunity Act of 1964, theCom- Several action agencies within theDepartment munity Action Program (CAP) hasserved as the of Agriculture have been involvedin community principal action agency of its administrative developmenfprograms for many years. TheFarm- parent, the Office of EconomicOpportunity ers HomeAdministration, the Soil Conservation Extension Service (OEO). Broadly stated, its purposeis to "... Service, and the Cooperative provide stimulation and incentive for urbanand are theagencies most closely identified withthe rural communities to mobilize their resources to Departwent's work in this area. the Secretary combat poverty..." 2 To accomplish this, OEO In late 1966, the President directed makes grants to private nonprofit andpublic of Agriculture to (5) agencies to cover up to 90percent 3 .of the cost of (a) provide an "outreach" function byutilizing all the organizing and administering local Community ficilities of the Department of Agriculture fieldoffices in almost the task of assisting other federalagencies in making Action Agencies (CAA's). In practice, their programs effective in rural areasand (b) take the three-fourths have been organized around private initiative in identifying problems ofthe rural communi- nonprofit agencies, many of them created specifi- ties which require the coordinatedeffort of various de- cally for this purpose (3,p.28). partments and agencies for their effectivesolution. The CAA's may be formed torepresent any The Secretary thereupondirected the Farmers urban or rural area, including a State, metropoli- Home Administration to assumeprimary responsi- tan area, county; city, town, multicityunit, or any bility for implementation of the"outreach" func- sufficiently hombgeneous area, without regard to tion in the field. political boundaries or subdivisions. Despite the To accomplish this, the Farmers Home,Admin- broad permissiveness of thelegislatiim,' most are istration, in combination withrepresentatives of organized along conventional political boundaries. other agencies of the Department ofAgriculture, Of the 513 CAA's funded as of September 30, have worked through TechnicalAction Panels at 1965, about 60 percent were organized along the county, area, and state levelsthroughout the single-county lines with the remaining 40 percent country. These panels are composedof representa- evenly divided between city, and multicounty tives of several agencies of the Departmentof Ag- units (3, p. 43). The number ofCAA's has grown riculture in addition to representatives ofother rapidly since 1965 and now stands at around 1,040. local interests. Their purpose is to assistlocal peo- Of the approximately 620 CAA's nowoperating ple in identifying community problems, tocoordi- in rural areas, about half are based in single coun- 'nate Federal programs, includingantipoverty pro- ties and half in multicounties (4, p. grams, and toprovide technical assistance in the The central purpose of the CAA is to identify implementation of these programs. local poverty problems and to develop programs The Rural Community DevelopmentService that will work toward their solution. Some of, (RCDS) is the central liaison between theDepart- these programs are directly ,administered by the ment of Agriculture and other Federalagencies operating antipoverty programs. Operatingunder 2 Economic Opportunity Act of 1964 as amended through direction of the Assistant Secretary ofAgricul- Dec. 1, 1966. P.L. 88-452, Title II, Sec. 201. ture for Rural Developmentand Conservation, 2 The -Director may, under extenuating circumstances, provide grants that cover the entire cost. RODS is charged with providingTechnical Ac- 123 tion Panels with information about relevant non- level, though it may cooperate with othergroups USDA programs. in their initial organization. Another agency dealing with the problems of In recent years Extension has servedas an in- community organization and rural poverty is the formational-,resource- and .has- helped. developa Cooperative Extension Service. The Extension wide variety of community developmentprograms. Service is cooperatively administered by the De- At the present time, Extension has something less partment of Agriculture, the land-grant univer- than 400 full-time staff members at the county, sities, and county governments. It is not a line area, and State levels working on community re- agency of the Federal Government. Its original source development problems. They have contrib- purpose, as described in the Smith-Lever Act uted directly to recent antipoverty efforts by: which created it, was to helping in the organization of several hundred ... aid in diffusing among the people ofthe United Community Action Programs, assisting in the de- States useful and practical information on subjects relat- velopment and implementation ofover 1,500 CAP- ing to agriculture and home economics, and to encourage administered projects, training and supervising the application of the same... professional and subprofessional workersem- -The phenomenal increase in American agricul- ployed by other agencies in antipovertyprograms, tural productivity is in part a reflection of Exten- assisting in the establishment of Manpower De- sion's contribution to the achievement of this goal. velopment and Training Act programs, working However, improving the productivity of com- with community and multicountyresource devel- mercial agriculture has been only one of several opment committees, assisting several hundred challenges facing rural America. The elimination thousand low income homemakers in themore of widespread poverty has been another. Though effective use of the Food Stamp and Food Distri- Extension's responsibilities extend in many direc- bution programs, and establishing day thecenters. tions, their efforts to solve this particular problem have been less successful than their work in other Strengths and Weaknesses of Present areas. However, there is evidence that Extension Efforts has recently made a stronger effort to deal with the unique problems of the rural poor. How successful or unsuccessful have theseorga- The Extension Service approach to community nizational efforts been in reducing poverty ?. Per- organization and development differs from that of haps the most promising sign is thevery fact that the Community-Action Program in several impor- we as a nation are giving more attention to the tant ways. Education and the dissemination of problem. This is reflected in the multitude ofnew knowledge are basic to the Extension philosophy. Federal, State, and local efforts "to do something" "Extending" information to and working coopera- about poverty. The Economic Opportunity Act of tively with people and their organizations"edu- 1964 and the expanded efforts of the Department eating for action"is Extension's central aim. A of Agriculture' are two specific illustrations of the spokesman for the Extension Service has said their objective is (6) form these efforts are taking. There is something very personal about poverty. .. to involve as many people as possible within, an area or region in educational programs which not only It is more than a material problem, it involves develop awarenessand understanding of the problems and human values, attitudes, and expectations. Its basic opportunities, but which also provide them the knowl- elements can be dealt with only ina personal way, edge and fools for taking necessary action. through the involvement of thepoor themselves. In working toward this objective, the Extension Several programs, especially the major Federal Service attempts to operate as a behind-the-scenes programs, have recognized the fundamental im- catalyst, Working in this capacity, it provides edu- portance of this tenet and have incorporated it cational support, often through existing commu- within their programs. Though they have not nity organizations, to individuals or groups want- always achieved success; they are to be commended ing to develop community resources. The Exten- for their efforts. Their failuresare 'more a reflec- sion Service does not itself assume any formal tion of our inadequate understanding of the prob- responsibility for the operationor administration lerdand how tocope with it than with our lack of of action programs or agencies at the community respect for its importance. 124 The Commission is -particularly impressed with tend to see development in terms of raising the the success of the Community 1--ction Program on aggregate income of an area through the attrac- many Indian reservations. The process of commu- tior of industry and the creation of new jobs. nity involvement on these reservations has suc- Though the poor can sometimes benefit from the ceeded in lifting the people's attitude from a feel- creation of additional jobs, in the absence of co- ing of despair to one of genuine hope. We suggest ordinated efforts to upgrade job skills, the hard that the Indian experience be studied for lessons core among their ranksstand to gain very little. that might be of value in other contexts. In this These :development groups do not normally seek regard, we commend the reader's attention to the to involve the poor nor to alter the presentdistri- published report of the hearings held before this bution of person income; at least not in favor of the Commission (7). poverty stricken. Reductions in the extentof local It is also encouraging that some programs have poverty are almost incidental to themajor objec- recognized the importance of institutional as well tives of these groups. as economic barriers. There is ample evidence that The manner in which existing community orga- many local institutions, North and South, are un- nization efforts have been structured has also been able or unwilling to forthrightly address the a source of difficulty. Therehas been a critical lack problems of local poverty. Racial and ethnic dis- of attention given rural areas. The initial mistake crimination is still a serious impediment. Some has often been to separate programs into two neat; community organization groups have demon- but largely disfunctional, componentsrural and strated surprising resourcefulness in 'working urban. The case against this dichotomous approach around theca 3arriers. has already been made. But over and abovethis These are the hopeful signssigns that we are problem there has been a basic inequity in the al- beginning to move in the right direction. But there location of resources between the two. The rural are other indications that warn against complac- poor have been seriouslyshortchanged. In some ency or overconfidence in our past record or our cases this can be traced to programadministration ; present course. The fact remains that 14 million iri other instances the exclusion has been legislative. Americans live in rural poverty. Why is this ? One of the leading reasons that rural poverty Where have our programs failed ? has been slighted lies in the very nature of the Fundamental to any successful decision-Making Problem. The environment in which rural poverty process is the identification and delineation of ap- exists' is a particularly forbidding one.It is char- propriate objectives. Present programs are. riot acterized by : (1) a dispersed population, making doing well in this regard. There is considerable communication and organization extremely diffi-, confusion over the goals of community develop- cult; (2) an absence or deficiency of public facili- ment. Some groups appear to be interested in ties and services; (3) a scarcity of local leader- organizing members of a community almost for ship and exi?ertise; (4)' a deepseated resistance to the sake of organization alone. In such cases, or- change; anti (5) a local power structure that often ganization tends to become an ends in itself. While 'stands unalterably opposed to any outmigration of there is merit in viewing organization as an inter -. population. These obstacles make the problems mediate goal,_without a program leading to more of rural ?overty that much more difficult. Ad- tangible results, the involvement and 7- ape being ministrators and legislators have 'therefore ,weep sought might instead yield increased .2..-astration ;reluctant to devote scarce resources to a problem and despair. Organization only begins the proc- about which they know so little. Ag a result, the ess. The Commission fears that a combined lack of rural poor have received less attention when in leadership, expertise, and resources have caused fact they require more. many rural Community Action Agencies to fall AnOluell problem concerns the fragmented and prey to this dilemma. Many ofthe Department of localized nature of many community organization Agriculture's efforts to coordinate its agencies,for efforts, We appreciate the importance of involving antipoverty and development purposes at the local people at the neighborhood level. These projects level have suffered from similar problems: can serve an extremely useful purposein better- Other community development groups, partic- ing resent environmental conditions and instill- ularly those associated with commercial interests, ing a. sense' of community involvement. This is have a much different orientation. These groups the place to start. But it is not the place to stop. 125 Many of the major societal decisions affecting the with a similar problem in its countycommittee well-being of the poor are made at higher levels structures. The objectives ofthe Farmers Home in society, beyond the village or county boundaries. Administration have changed radicallysince the The provincial nature of most organizational ef- agency's establishment. The FHA now servesall forts is obviously attributable in large measure to parts of the rural sectorfarm andnonfarm. Yet, the difficulties of organizing on the basis of a suffi: the three-man committees that evaluate programs ciently large area. The price of formIng on a larger at the local ,level are sometimesill-prepared to area basis is a looser, less intimateorganization; evaluate projects that do not directly relate to however, the'price of not forming on a larger base commercial 'agriculture. We suggest that the FHA is a less effective and largely powerless organiza- give prompt attention to achieving broader repre- tion. Clearly, some form of organization is needed sentation on its local committees so theymight at both levels. Yet, it seems to us that too many of moreeffectivelydealwithnonagricultural the limited resources of both the Community Ac- programs. tion Program and the Department of Agriculture Recommendations are being expended onprojects that are too re- The Commission encourages and supportsthe stricted in scope. many developmentefforts on the part of numerous An additional weakness concerns the use of public and private organizations working inrural existing organizations and expertise in combating areas. While some ofthe programs can have an poverty. Some groups make every effort to work impact on problems of poverty, the goals tend to through existing organizations, public and pri- be short run, and the programs oftenfail to be vate. Others avoid working with local authorities integrated with an established, overall planning entirely. The Cooperative Extension Service and program. The Commissionalso applav ds the effort the Community Action Program have largely being made under numerous auspices toinvolve taken opposite routes in this respect. While the Ex- local people in the planning process, forit feels tension Service endeavors to work through the the participation and involvement of localpeople "establishment" whenever possible, CAP tends to is an essential part of any successful antipoverty avoid joining forces with the established power program. structure, especially in rural areas. A more flexible The Commission believes the followingprinci- approach would seem to be in order. Local and ples offer an appropriate guide in framing pro- State authorities can and should be used more grams and policies designed toimprove commu- effectively than they have been to date. On the nity organization : 4 other hand, indifference to the plight of those (1) Activities and projects undertaken must in poverty by these same authorities should not be correspond to the basic needs of thecommunity allowed to serve as a deterrent. Both approaches and to the expressed needs of the people. have their time and place; but circumstances, not (2) Thoughlocalimprovements may be an inflexible agencyphilosophy, should be the achieved through unrelated efforts in several fields, deciding factor. comprehensive community development requires Staffing has also been a major source of difficulty concerted action in the establishment, ofmulti- in nearly all cases. The Community Action Pro- purpose programs. gram has suffered at all levelsfrom an -inability (8) Change in the attitudes of people are often to attract enough competent personnel. In large as important as thematerial achievements of com- measure, this failure can be traced to acombina- munity projects during the initial stagesof tion of inadequate standards and job insecurity. development. The Cooperative Extension Service has suffered (4) Community development should aim for from a different sort of staffing problem. Though increased participation of people in community it too employs many capable people, Extension affairs and revitalization of the existing forms of has historically focused its attention on commer- local government. cial agriculture and the problems of commercial farm families. Therefore, many of its employees 4 Adapted,from the United Nations Economic and Social Council, Report on Concepts and Principles of Community have neither the ability nor the inclination to work Development and Recommendations on Further Practicle with the poor. Measures to be taken by International Organizations The Farmers Home Administration is afflicted (New York :1557), p. 13, mimeographed.

126 ..4.14.11

(5) Theidentification,encouragement, and The Commission also "recomniends- training of local leadership should btua basic objective in any program. 2. That community development councils (6) The resources of voluntarynongovernmen- broadly representative of all interests in the tal organizations should be utilizedas fully as pos- area be formed. sible in communityprograms at the local, State, and national levels. These councils should: be formed in the context (7) To avoid unnecessary overlap and duplica- of the area development districts described in the tion of effort and toencourage maximum effective- preceding chapter of this report. They may be ness,allrelated programs should be closely established in a variety of ways. When feasible, coordinated. the councils should be formed in conjunction with (8) To be fully effective, community develop- a district governing board. When this is not feasi- ment projects require assistance from higher levels ble or when there is no governing board, State of government--State and Federal, government should assume responsibility for (9) Economic and social progress at the local forming the councils. level necessitates parallel developmenton a wider regional and national scale. The responsibilities of the councils will vary, depending upon whether or not a governing board (10) Implementation ofa community develop- has been formed within the area. If a board exists, ment program on a national scale requires: adoption of consistent policies, specific administrative the council's duties should include the identification of problems in the district, the suggestion of arrangements, recruitment and training ofper- solutions to problems, the provision of a link and sonnel, mobilization of local and nationalre- sources, and organization of research, experimen- communication channel between the governing tation and program evaluation. board and the people, and the review of develop- In the recommendations to follow the Commis- ment proposals emanating from the board. If there sion assuLtie2 that overall social and economic is no board, the councils should assume the addi- planning to be effective must be done inan area tional responsibilities of drafting district plans large enough to provide a reasonably comprehen- and laying the groundwork for the formation of sive measure of social and economic unity and a district governing body. -viability. Yet, the Commission is also committed A community development council should rep- to the necessity of broad representation in the resent all interests, including the poverty stricken, planning process on the part of all subareas, inter- labor, industry, government, agriculture, religion, ests, and action agencies already at work. education, health, welfare, locality of residence, and existing action agencies. To insure that all The Commission recommends- interests and points of view are adequately represented, the Commission suggests that an 1. That government agencies with the re- organizational plan be submitted with that of the sponsibility of fostering community organiza- governing board for review and approval by the tion and development expand their efforts. In appropriate State and Federal agencies. The coun- doing so they should revise their approach to cil should be large enough to represent all interests, provide two coordinated sets ofprograms, one but small enough to be operationally, effective. to meet.needs at the local level and the other To help the development council carry out its to accommodate areawide needs. duties more effectively, the Commission suggests Community organization can perform useful making the council's chairman a voting member of the district governing board, when that body functions at both the local and thearea levels. However, the nature and scope of these functions becomes operational. are fundamentally different. It is vitally impor- The CoMmission recommends tant that Federal agencies operating programs in this area recognize the importance of this distinc- 3. That the Office of Economic Opportunity. tion and make every effort to be responsive to it. take the following steps designed to improve

127 the operational effectiveness of its Community the ranks of the poverty stricken whenever they Action Program in rural areas: can be effectively used (a) Reorganize Community Action Agencies (CAA's) along multicounty lines consistent (e) Strengthen CAA ties with units of local with the area development districts described government by operating through these govern- elsewhere in this report whenever feasible, in- mental bodies whenever feasible. suring that both rural and urban areas are (f) Require periodic evaluation of all major encompassed within each and, at the same time, programs by both internal research organiza- maintaining the existing neighborhood struction and impartial consultants from ou*side the ture as the basic unit upon which the multi- agency. county organization is founded. (b) Require all CAA's, in cooperation with (g) Develop and efInimunicate to the CAA's the planning bodies of area governments, to a clearer, more specific sense of theCommunity --submit for approval by OEO a detailed plan of Action Program's purposes and the ways in their proposed activities within 1 year of their which these purposes might be achieved. funding. Though 0E0 has made many laudable attempts The COmmunity Action Program does not pres- to identify its objectives, it has not always suc- ently require its CAA's to prepare a comprehen- ceeded in communicating these to local and re- sive plan. Though some planning is done using the gional offices. There is frequent confusion and mis- agency's "program development" grants, itis understanding among its personnel at these levels. rarely of acceptable quality. The Advisory Com- While the Commission respects the importance of mission on IntergovernmentalRelations has local autonomy and flexibility in achieving com- termed the absence of planning requirements a munity action, it is convinced that the Community "serious omission" (8, p. 16 6).The Commission Action Program would benefit from a more specific concurs and suggests that, with the help of outside sense of direction. technical assistance, all CAA's be required to pre- (h) Develop techniques and programs and pare comprehensive plans, including a detailed employ personnel specificallytrained and inventory of local resources, existing public and oriented toward working with the r Iral poor private programs relating to antipoverty work, and the unique problems of rural poverty. local needs, alternative means of meeting these needs and estimates of their respective costs, and a (i) Form a staff of rural specialists, knowl- desired course of action. The Commission further edgeable in various subject areas relating to suggests that OEO provide grants for this pur- rural poverty, to serve in an advisory capacity pose and that appropriate safeguards be attached to the Director of the Office of Economic to insure that the monies are used exclusively for Opportunity. this purpose. (j) Extend community organization and (c) Require CAA's to seat on their governing legal aid assistance to all parts of rural Amer- boards representatives of all local, State, and ica, particularly the rural South. Federal agencies operating anti-poverty related programs within their jurisdictions. Organization and legal aid are two of the principle mechanisms by which the poverty stricken For CAA's serving rural areas, it is particularly can obtain access to the rights and responsibilities appropriate that the Department of Agriculture's of the larger society. The "Grass Roots" program; Technical Action Panels and the Cooperative Ex- 5 Operation "Grass Roots" is an OEO program, patterned tension Service be represented on these bodies. after the Medicare Alert program, that employs teams of community aids "to inform rural and small town low- (d) Adopt more rigorous standards in the income families about benefits available to them in their employment of professional staff and assure community, assist them to form area councils which can influence the conduct of their county's anti-poverty effort." employees a greater degree of job security. Operation "Grass Roots," (Office of Economic Opportunity, And, encourage the Community Action Pro Regional CAA Bul. SFR-45, San Francisco, Calif., May 8, gram to employ subprofessiimals drawn from 1966). 3i*

now being, operated by CAP on the West Coast, zramsrural and urban. Though rural poverty and the use of itinerant lawyers may prove pude- has its unique problems which, in turn, must be ap- ularly helpful in achieving these objectives. The proached through unique programs, it is not sub- "Grass Roots" program offers a unique opportunity ject to a treatment entirely separate from urban to mobilize the social energy of the poor themselves poverty. Solutions to rural and urban poverty are through employment as community aids, A legal inextricably bound together. Organizing along aid program using itinerant lawyers might also separate rural-urbn lines only delays realization assist in bringing legal justice to those who are of our ultimate goal. now denied it. The- Convmi ,98im oectmonends- The pyinissionT00712271eltd8-- 5. That the duties and responsibilities of the 4. That an interagency coordinating commit- Cooperative Extension Service within land- tee composed of representatives of the Office of grant universities be broadened and strength Economic Opportunity and the Department of ened to encompass a wide range of major social Agriculture be established for the purpOse and economic problems, including those asso- strengthening and clarifying the relationship ciated with rural and urban poverty, regional between their respective rural antipoverty development, and urbanization; and that all programs. disciplines that can be effectively employed in dealing with these problems be represented These agencies bear primary responsibility for ,within the Extension Service. Federal efforts at community organization in rural If it is not feasible to achieve these purposes areas. Their functions are closely related. Yet, the through a reorganization of the Cooperative degree of cooperation. and coordination between Extension Service, the Commission recommends the agencies is extremely weak. The Commission is that the university assume direct responsibility concerned that this lack of knowledge of each for the immediate development and operation other's programs and pufposes severely damages of a full universitywide extension program. the effectiveness of the programs of both agencies. It must be recognized that each agency hos-a role 6. That State Cooperative Extension Servr to playin close cooperation with the other. ices The collective expertise of the Department of (a) involve the State offices of the Office of Agriculture can be most effectively employed in Economic Opportunity in the planning of Ex- working on those poverty problems that relate tension poverty programs; specifically to agricultural production. This is the (b) require their local Extension committees function for which Agriculture's particular COM- to include representatives of the local CAA; bination of talents is best suited. (c) require their local and area offices to The Cooperative Extension Service occupies a work with CA.A's ; unique position and can play an important part in (d) train their personnel adeqdately for the antipoverty efforts. Its basic function has been to quite different demands of poverty work and reach out from the Federal Government and from the other aspects of a broadened role as recom- the lai.d-grant colleges to provide citizens with a mended above ; and fuller understanding of their environment and (e) restructure local Cooperative -Extension with information and skills to help people solve Service programs on an area development dis- their problems. The experience accumulated by the trict basis. Cooperative Extension Service can be, profitably It is the belief of the Commission that the strat- employed beyond the farm gate and even beyond egy for solving society's problems implicit in the the rural setting. For this reason, we urge that the direct action approach of 0E0 and the less direct Extension Service become more closely affiliated educational approach of the Cooperative Exten- with, the Office of Economic Opportunity. sion Service are both legitimate andl'necessary to The Office of Economic Opportunity should bear the solution of the problems of poverty. The Com- ultimate responsibility for serving as the coordi- mission believes it extremely important that the nator and catalytic agent of all antipoverty pro- Office of Economic Opportunity, the CoOperative Extension Service, and other groups. Using these These guidelines-should be designed to encourage different strategies learn to appreciate each other's training. programs that would foster a mature, roles and to cooperate. responsible, andimaginativeapproach to problem solving. At the same time, extreme care should be The C onwn4sian recommends- taken to seethat the guidelines do not stifle or in- hibit the realization of creative change. 7. That the Federal Government finance Social change necessarily gives rise to expres- training program for employees of public and sions of antagonism and animosity. It is essential, private agencies conducting community and therefore, that the individuals involved in these regional development programs. programs adhere to the very highest standards of personal conduct to ensure that the program's suc- These p'rograms could be provided through those colleges and universities best qualified cess is not jeopardized by their actions. The adop- in the rele- tion of training program guidelines would, in our vant fields of study. The Commission suggests that opinion, contribute to the accomplishment of this agencies active in community, and regional development participate in design of the curricula and objective: that grants be made to cover the expenses of both The Commission recommends- the institutions and the participants taking part in the program& 8. That an interagency council composed of While some instruction might be at a profes- representatives of all State and Federal agen- sional level, a great deal of useful information can cies operating programs within the area be be disseminated through subprofessional short establishedwithin each area development courses and workshops. Special attention should be district. given to the training of professionals and sub- The council, would have a twofold purpose. First, professionals for antipoverty, planning_,and eco- . it would serve as a central coordinator or clearing- nomic development work. house for all State and Federal program& In this We would also suggest that appropriate Federal capacity, the council chairman or cochairman agencies be given formal responsibility for estab- could sit as government representatives on the lishing and administering broad guidelines for district's community development council. Second, these training program& For example, responsi- the council would serve as a training laboratory for bility for training programs relating to anti the development of techniques for more effective poverty work might rest with the Office of Eco- interagency cooperation for community organiza- nomic Opportunity. tion and development. References

(1) HAROLD F. KAUFMAN. and W' ED C. BAILEY. LEVELS (5) U.S. DEPARTMENT OF AGRICULTURE. RURAL AREAS DEVEL- COMMUNITY ANALYSIS. MISS. State Univ. Social OPMENT PROGRAM Secretary's Memo. 1610, Feb. 27, Sci. Research Center, Prelim. Rpt. 9, September i967. 1965. (2) DONALD GILMORE. Dza/LoPING THE "LITTLE" ECON- (6) Emil PRIRER. COOPERATIVE EXTENSION SERVICE WORK OMIES, Committee for Econ. Develop.. Supplemen- WITH LOW-INCOME rAmTLTEs AND GROUPS. Federal tary Paper 10,1960. Eaten. Serv., mimeo, 1967. (8) ADVISORY Comtissioir' ON INTERGOVERNMENTAL RE- (/) NATIONAL ADVISORY COMMISSION ON RURAL POVERTY. LATIONS. INTERGOVERNMENTAL RELATIONS IN THE RURAL POVERTY3 HEARINGS BEFORE THE COMMISSION, POVERTY PROGRAM. Rpt, A-29, April 1966. Tucson, Ariz., Jan. 26 and 27, 1967. (4) MORTON LUSTIG and JANET F. RE/NER. LOCAL"GOVERN- MENT AND POVERTY IN RURAL AREAS Contract paper (s). ADVISORY COMMISSION ON INTERGOVERNMENTAL RELA.- for the National Advisory Commission on Rural LATIONS. INTERGOVERNMENTAL RELATIONS IN THE Poverty, June 1967. POVERTY PROGRAM. 1960. Memorandum. of Reservation by Robert A. In order to replace hopelessness with hopeful- Roessel jr. concerning Chapter 11 ness, the rural poor must see, feel, and be engaged in the programs they themselves develop and op- While I completely support the thrust of this erate. The principle of community development chapter, I feel it does not go far enough in enlisted in the chapter and adapted from the United couraging local involvement and participation. In Nations Economic and Social Council are, in my my opinion, the chapter is too concerned with estimation, part of the most powerful and most standards and organization and not concerned important section of chapter 11. Massive programs enough with the hopes and aspirations of the poor controlled in distant localities may change the out- people. In my estimation, the Chapter should ward elements of a community, but they will rarely highlight and focus the Commission's concern on change the hearts of people. We must be willing human resources and the vital role the rural poor to gamble on the poor and support their efforts in must play, not only in the identification of prob- improvement and participation. The "father lems, but also in the development and implementa- knows best" attitude has never, nor will it ever, tion of programs. solve the problems facing the rural poor. In a very While it certainly is true that rural society as real and direct way the rural poor must have the we have known it in the past is rapidly changing, right even to be wrong. I feel we can retain many of the values which gave The absence of emphasis on utilizing American meaning and significance to rural he in the past. youth is another shortcoming of chapter 11 in my Surely, with the mechanization of farm work and opinion. Today in a world full of frustrations, all the modern improvements in agriculture, it is anxieties, and disillusionment, American youth still possible for rural America to preserve the must be challenged to be involved in service heart and soul which so uniquely contributed to the oriented programs. The greatness of our nat:on, in growth and dignity of this :nation. large measure, depends on the concern for others The problems identified in the chapter with that can be developed and encouraged in all Ameri- respect to the need for an enlarged outreach of cans. The success of Peace Corps type programs previously smaller communities are correct and conclusively demonstrates the large number of proper. I feel that the vitality and significance of Americans of all ages who have a sense of dedica- rural involvement and participation must not be tion and a desire to serve. I feel a chapter dealing lost in the Proces& As this chapter points out, citi- with community deielopment and human resources zens can : contribute to the identification of prob- should challenge American youth of all ages to lems and the development of new perspectives on respond to the needs of others through service in those problems; provide advice on proposed pro- programs directed at their improvement I believe grams, keep government officials on their toes, and attention should be directed toward finding Ameri- serve as a communications link. Furthermore, the cans who have a sense of service and a commitment rural poor can and must be involved in the development of the various programs designed to assist to the needs of others. Surely, this great nation them in their communities. However, citizen in- has individuals who are motivated not only by volvement and participation does not, in my opin- material blessings but also by need and a desire of ion, receive adequate emphasis in this chapter. My service to others. concept of the role, of the citizen is an active and Summarizing, my reservation to chapter 11 is dynamic one, wherein both the identification of not one of substance but rather of degree; I feel problems and the development of programs origi- it goes down the road in the right direction, but nate at the local level: does not go far enough.

131 Conservation and Developmentof Natural Resources America has been, and continues to be, blessed Natural Resource Programs with an abundance of natural resources. These re- Up until about the turn of the Nth century, our sources provided the rawmaterials for America's natural resource policies related principallyto leadership in the industrial revolution, provided disposal and settlement of the publicdomain and the base for developing the world's most productive to development of rivers andharbors for naviga- agriculture, and contributed immensely to our tion. Our current arra3r of Federal andState nat- dramatic economic progress. ural resource programs can be attributeddirectly Nevertheless, much of our rural poverty has its or indirectly to theconservation movement which roots in the way the benefits of our natural re began about 1890. sources have beendistributed. The geographical Currently, Federal investment to conserve, location of water, land, mineral, and other re- and the develop, and manage our supply of soil, water, sources affected both settlement patterns timber, mineral, marine, and wildlife resources location of growth centers. Early in settlement, approaches $4 billion annually.1 About CO percent the Appalachian and Ozark regions were sparsely of this total is investment in waterand related land populated. However, these and other areas of the resource development, Federalinvestment to con- country became overpopulated in relation tothe serve and developprivately owned farmlandfor natural resource base and available economic example, irrigation, drainage, flood control,and opportunities. erosion controlamounts to about three-fourthsof: Many of our schools and public facilities were a billion dollarsannually. A similar amount is paid for by taxes levied against natural resources.; spent annually in developing andmanaging pub- Where public income from these resources has been licly owned lands, but little of it is directlyrelated low, because of the limited resource base, the re- to developing natural resources for ourincreas- sulting small investment in schools and other ingly urban industrial economy. public services has contributed to rural poverty. The natural resource programs were not con- The highly unequal distribution in ownership of ceived initially as programs to increase the incomes land resources in many areas of the South, stem- of low income families. Their objectives wereto mina from the plantation system, also has con conserve and develop natural resourcesfor the tributed to rural poverty. well-being of all Some, sucii as the Tennessee Val- As the country developed, access to income from ley. Authority, however, have had associated ob- natural resources became a less important factor jectives of increasing income and employment of in income distribution. The majority of Americans low income people. The Tennessee ValleyAuthor- now derive none of their income directlyfrom these ity employed these people directly in project resources. However, the patterns of growthdefi- construction until World War II. nitely were influenced by the location of natural The Civilian Conservation Corps had the twin resources. These patternshave had perpetuating objectives of conservation and developmentof impacts on economic development and income dis- natural resources, and employment of the nation's tribution. Many people now highly dependent on youth. These young people, with the help of those income frian their own labor in natural resource in various other emergency work programs during industries are in a state of poverty. The techno- the great depression of the 1930's, developed trails, roads, bridges, lodges, parks, timber stands, and logical explosion in these industries has increased other long-term improvements to our natural and has the skill level requirements of labor used environment. Many of these improvements still are decreased total employment, particularly inmining and agriculture. 1 Derived from appropriations for fiscal year1966 133 national assets. During the peak employment States--Arkansas; IndianitiMirmarotarNew period of 1985-41, about 150,000man-years of seyi Oregon, Virginia, andliTisconsin. labor per year were devoted to the development of Elrfnig for the -Green Thumb program, there natural resources by the work groups.2 nas been little direct association between-programs--- The resource conservation and 41.:,:eiopment to improve our natural environment and programs projects administered by the Soil Conservation to reduce rural poverty. But the Green Thumb Service represent another kind of public effort to program is meager in relation to the needs-and-- stimulate growth of ruralareas. These projects opportunities for improving our natural environ- emphasize land treatment, landuse adjustment, ment through public employment. watershed development, development of outdoor recreational areas and facilities, and development Problems and Recommendations of natural resource related industries. Natural resource investments can help the rural Acceleration of public works projects has been poor in areas where they live, through the contri one of the instruments in full employment policy. hutions these investments make to sustained Much of this increased investment has been made growth. Some of these investments are necessary in economically depressed regions with theexpec- to area economic development; some help people tation of increasing employment of people in those in areas where the investment is made, but hurt regions in project construction. Public works people in other areas; and some may create false projects also are expected to add to the potential hopes as to 0.-11r contributions to increasing infor regional economic development Reclamation, come sm:i employment of the rural poor. The latter, small watershed, and river basin development ia particular, is exemplified by the expectation. of projects frequently owe their justification toex- employing the rural poor in large-scale construe- pected contributions to local and regional economic tion projects. Available evidence indicates that development. little, if any, direct employment of the unskilled About a decade ago, the Outdoor Recreation rural poor occurs in this construction.3 Review' Commission brought national attention to Thus, we direct our attention to other possibili- the needs and potentials of recreational develop- ties of helping these people through natural re- ment. rrograms to implement this interest have source development. been initiated. Also, increased emphasis has been In relating natural resources and area economic put on recreation es a purpose in river basin and development, the Commission is concerned pri- watershed development. marily with adequate supplies of water, recrea A growing public concern has emerged about the tion areas, and facilities, and with improvement in quality of our natural environment. Our highway the natural environment of rural areas. Emphasis beautification program ie of the outgrowths of is on bringing abouta closer relationship between this concern. Ste to and localgo vernments also have plarining and administration of natural resource stepped_ lip their efforts to improve their natural projects and area economic development. Major environments. Other examplesare increased efforts attention is given to employnaent of the ruralpoor in Water pollution abatement, wild riverpro- in improving our natural environment. Develop- grams. and Green Thumb. ment of farmland is considered in a broader con- Thumb, Inc., is a bubsidiary of the Na- text than area economic development because of the tional Farmers but it is funded. by the widespread consequences of public investments for Oillep. of Economic OpprOnnity, Stategovern- this purpose. ments, and local groups. Green Thumb isa pro Development of Water for Area Growth gram to employ retired farmers in highway beautification, public park improvements, and related The Commission believes that -waterresource work. Currently, theprogram operates in seven investments should emphasize pollution abatement, municipal and industrial water supplies, andre- 2 Summary of estimates provided by Forest Service, creation more than they have in the past. No longer Soil Conservation Service, National Park Service, Bureau of Sport Fisheries and Wildlife, Bureau of Reclamation, Derived from unpublished data on wage rates in local Bureau of Land Management, and Bureau of Indian areas of eastern Kentucky provided by the Department of Affairs. Labor. 184 can we take for granted a 'cheap andplentiful marily upon past trends in growth of the urban supply of water. Ample supplies of good quality. areas. It takes little accountof the possible effects water for municipal and industrial uses for our of programs designed to change the past patterns growing population centers are increasingly ex- of growth, such as area economic development pensive to achieve. Yet, water is necessary to their programs. Currentplanning for water resource growth. investments is oriented to maximize the physical Many rural -communities having -potential as development of water in river basins, with the growth centers, or actually designated as such, traditional purposes of water development receiv- are 'without Supplies Of the quarititY andquality ing major emphasis. We believe this planning of water needed to provide for their envisioned should be coordinated more closely with planning growth. Development of supplies of Water for for the development of area development districts. anticipated or planned growth of small to medium- sized urban -centers does not assure realization of The Commission recommends- this grovith. However, programs designed to de- (1) That planning and administration of: velop those centers must includ'e water resource water resource development for municipal, in projects -where maple supplies do not already dustrial, and other uses be consistent with ob- exist, jectives of economic development within area A. major problem in supplying water to areas development districts. in support of future growth is the inflexiliility of our water institutions. In river basin development Water and Sewage Systems we have given prioritY to the traditional purposes A large and growing proportion of our water of navigation,Irrigation, hydroelectric power, and resource investments is forestablishing water and flood control.' Water law has emphasized, theie sewage systems. Much of theplanning for, these purposes at the expense of purposes more-relevant facilities is done independently of area develop- to the modern "economy. The critical future de- ment' districts or regional economicdevelopment mands for water will be for municipal, industrial, planning. and related uses. National demand for municipal and induitrial Adequate water and sewage systems do add to water supplies is expected to more than triple by the attractiveness of communities for new busi- the year 2000. Paralleling this increased demand nesses or industries. However, otherfactors such will be the need 'for greater amounts Of Water for' as available labor supply,transportation, and mar- pollution abatenient and recreation. Much of the kets loom large in these location decisions. This need for increased Supplies of water will occur in Commission recommends elsewhere an emphasis on developing rural' areas. growth centers and their satellites in planning. for This ComMission concurs with the Presiden t's economic development of area development dis- recommendation to the Congress in his budget tricts. The Commission believes planning for water message onJanuary 24,1967 : and sewage systems should be integrated with Illany regions of the country are facing increasingly planning for the area development districts. critical problems of adequate supply and efficient use of Where public funds for water and sewage fa- water. I urge proMpt enactment of legislation to establish cilities are limited, they could be used more ef- a National 'Water CoMmission 'to assess our major water problems and develop guidelines for' the most effective .use ficiently for establishing these facilities either in of available water resources: the larger towns or in towns expected to experience The Commission on Rural Poverty believes that the greater growth in population with economic new directions 'in national water resources policy development within the area development dis- are needed, with a reordering of priorities in pur- tricts. In this development process, many of the poses of water resource development--to give hamlets and villages will continue to decline in greater emphasis' oh municipal and industrial attractiveness as places for business or industrial water supplies to Support the growth of rural establishments, or as places to live, and adding new areas. water or sewage systems will not reverse the trend. Current planning for investment in water re- Others will become part of the structure of growth source development for .urban uses is based pri- of the area.

135 The COM11488i071, recommends To date we have a limited amountof research information dealing with social values ofimprove- (2)(a). That area development districts take ments in our natural environmentsuch as highway leadership in planning of water and sewage beautification, leveling and establishingvegetation systems for communities within theirboun- on strip-mined areas,and clearing debris and un- daries, and (b) that primary emphasis in useof wanted vegetation from public view.' loans and grants for developing these facilities In order to establish prioritiesin the use of be given to communities with substantial po- limited resources for public investment toimprove tential for growth. our naturalenvironment, we need some guidelines various Improvement of the Natural Environment for allocating a total investment among purposes. The public lands contain about half of our tim- Recreation development and otherinvestments ber resources, nearly half of the land area usedfor in our natural environment add to theattractive- grazing, allOfour public parks, ahigh proportion ness of an area foreconomic development. How- of all of our recreational areas and facilities and, ever, the primary purposeof these investments is of course, our roads and highways. These lands to enhance our enjoyment ofthe outdoors. These comprise a significant component of our natural investments have potential ofcreating assets environment. transcending the values reflected byincreases in Opportunities for additional public investment local area income. The economic benefitsresulting to conserve and develop these lands includeroad, from our recreational expenditures aremore wide- trail, and bridge construction; reforestation and spread than those contained within local areas.In timber stand improvement ; development and im- addition, there are values to improvementsin our provement of recreation areas and facilities; vege- natural environment not captured by oureconomic tation improvement and erosion control ; and high- systeth. way beautification. Anyaction to improve the By conservative estimates, the demand forout- quality of our natural environment could begin door recreation will triple during 1960-12000.8Part with additional investment to conserve and de- of this increase in demand arises from increasein velop our public lands. Much of this work could population, and part from an increase inleisure be done by unskilled rural people. time. Most of the increase' in demand will occur The Federal agencies with responsibilities in ad- near present andgrowing population centers. ministration of conservation and development of Thus, the greatest need is for recreationalfacilities natural resources estimate they could employ, for frequent visits such as day, overnight orweek- productively, about 75,000 additional man-years of end tripsnot more national parks,hundreds of unskilled labor per year for the next 20 years. miles from population centers. Most of this labor would be used to bring about improvements in the natural environment. The Commission recomnzend8 The reports of the Outdoor Recreation Com- be mission, and many other studies,4 give- us cause (3)(a) That public service employment for concern about whether our, rate of investment expanded by employing the rural poor inde- in outdoor recreational areas and facilities is veloping our natural environment,especially adequate. outdoor recreational facilities in areas nearthe The 'staff of Resources for the Future, Inc. has present and growing population centers;and projected timber and timber product shortages to . (b) that the priblic agencies withresponsibil- begin hear the year 2000.6 The Forest Service pro- ities in improving our, natural environment jects shortages well before the year 2000.6 sponsor studies to developguidelines for determining priorities for specific kinds of en- 4 For example : MARION CLAWSON AND JACK L. KNETSCII. ECONOMICS OF OUTDOOR RECREATION. The Johns Hopkins vironmental improvements. Press, 1966. Hans H. LANDSBERG, ET AL. RESOURCES IN AMERICA'S Some problems in developing. this information were FUTURE : PATTERNS OF REQUIREMENTS AND AVAILABILITLES, well expressed in a Department of the Interiorpubli- 1960-2000. The Johns Hopkins Press, 1963. cation : SURFACE 3/LIFTING AND OUR ENVIRONMENT.1967, pp. V.S. DEPARTMENT OF AGRICITI/TURE. LAND AND WATER 11-12. RESOURCES, A POLICY GUIDE. 1962. 4 CLAWSON AND KNETSCH, op. cit., e.h. 7.

186 Acquisition of easements and rights of way for In addition, we have several million more acres new recreational areas andfacilities will be re- of cropland which can be converted to moreinten- quired to implement the first part of this recom- sive use when and if needed. mendation in malty of the area development At the same time, the Federal Government,in districts. pursuing a policy begun in 1902,appropriates large sums of money each year toreclaim and ResourceConservation,and Development develop land for use in growing farmproducts. Projects Much of this reclamation and developmentis made. irriga- The active resource conservation and develop- possible by developing water supplies for inent projects are located hi about 20Mu lticounty tionoisually as part of a multiple-purpose project areas, most of which aredepressed' rural areas, or .which also may involve flood control, power pro- The duction, and other purposes. Justificationof the areas with high rates of unemployment. substantial objective is to increase income and employment of public cost of such projects (since .a public subsidy is involved) often dependspri- people in these areas through'. conservation and from the development of natural resources and natural- marily upon estimates of public benefits resource-related industries. development of farmland. . The heavy emphasis on 'increasing farm produc- That there may be local benefits is well estab- do tion and closely related indirstties is questionable. lished. Persons who live within a project area With continued high rates of technological ad- stand to benefit from the development of farm- vance, employment inagriculture will continue land, especially if they arelandowners. to decrease. Depressed areas with people highly Such development, however, may. generate dependent upon agriculture need nonfarm and greater national costs than nationalbenefits. Also, nonnatural resource industry job opportunities. the use of scarce supplies of water forirrigating Sustained economic development of the areas farms may sometimes deprive the locality of water requires this industry reorientation. for a higher value use. Much of the work in resource conservation and In considering the question of national benefits development projects does add to the quality of versus national costs, we have tokeep in mind that ; the natural environment, but these projects should the aggregate national demand for farm products be oriented more to this purpose. Also, the plan- increases at about the rate of population increase. ning associated with these projects could be, and Increases in farm production:exceeding the pop- ought to be, more closely associated with economic ulation increase must be accompanied by corre- development planning forarea development sponding decreases in production somewhere else, districts. unless the surplus is stored or exported. The areas . losing production because of land development are production. The Commission recommends, those with the least advantage in farm. They contain a high proportion ofour rural poor. (4) That the resource conservation and de. Studies estimate that accumulatedpublic invest velopment pkojects emphasize water supply, ment in. Federal reclamation projects in theWest-,' recreation, and improvements in the natural ern States up to about 1955 hasbeen responsible environment in accordance with plans for eco- for displacing 5 percent of the farmworkers in nomicdeirelopmentofareadeielopment the Southeast, the area with the largest concentra- districts. tion of rural poverty.° Do We Need More Farmland? Cotton arid vegetables produced on newly' developed lands in the West compete directly with Currently the Federal Government spends more production of these crops in the Southeast. than a billion dollars a year ($1.2 billion in fiscal The value of cotton produced on Bureau of Rec- 1966) to keep land out of production. This expend- lamation irrigated lands in 1965 exceededthe iture enables farmers to hold out of.production value of cotton produced in the three Statesof about 40 million acres by programs of cropland Florida, Georgia, and South Carolina in 1964. diversion, conservation reserve, and cropland adjustment. This acreage is available for use when- ° GEORGE S. TOLLEY. RECLAMATION'S INFLUENCE 40N THE ever we need biggersupplies of farm products. REST OF AGRICULTURE. Jour. LandEton., May 1959. 137 The value of vegetables produced on these irri- stresses controlling the supplyof farm products. gated lands in 1965 was 60 percent higher than the It believes the need is urgent tobring about con- value of vegetables sold by farmers in the entire sistency in various programs affecting farm pro- southern region, except Oklahoma and Texas, in duction, and consistency of these programswith 1964. Oklahoma and Texas contain Bureau of Rec- poverty programs. This Commissionfinds it im- lamation projects. The total value of crops pro- possible to reconcile Federal expenditures for reduced on Bureau of Reclamation irrigated lands claiming and developing land with Federal ex- in 1965, amounting to approximately $1.5 billion, penditures for taking land out of production while was about one-third the value of all crops mar- surpluses of certain farm products mount. keted by farmers in the southern region, except Oklahoma and Texas, in 1964. Clearly, without The Commission therefore recommends this production on publicly subsidized irrigated (5) That land development programsof the lands in the West, much of the South could have Bureau of Reclamation, the SoilConservation stronger agricultural and rural economies, with Service, and other Federal agencies bediscon- fewer poverty stricken people. tinued, and that no more public money bein- Reclamation projects accounted for slightly over vested in developing privately ownedfarmland 8 million irrigated acres in the Western States in until the nation needs more land for producing 1965. An increase of 5 million acres of Federal the desired output of food and fiber products. irrigation in the West by the year 2000 is probable, Exceptions should be made where land develop- and doubling of the present Federal irrigated ment offers the only feasible escapefrom pov- acreage by that time is possible 10unlessin the erty for Indians and other specific groupsof meantime there is a drastic change in policy. rural poor people. In addition to bearing the cost of the farmland development associated with reclamation projects "Excess Land" in Irrigated Areas in the West, the public bears a major share of the cost of other programs for developing pri- Reclamation law specifies limiting the delivery vately owned farmland. These developments inof water for irrigation to land in single ownerships clude irrigation, drainage, liming, fertilizing, and of not more than 160 acres, unless the owners "excess cover crops. The effects of this public expenditure have signed contracts agreeing to sell Ile on increasing farm output are similar to those lands" at prices approved by the Secretary of from farmland developmentassociatedwith Interior. Over the years, the Congress has made reclamation. a number of exceptions tothis acreage limitation,11 Moreover, the rural poor get very little direct and administrative interpretation has permitted benefit from these expenditures because they own farm size on project lands to be more than 160 such ft small proportion of the farmland. For ex- acres. For example, ahusband and wife may each ample, farms under 140 acres in size received only own 160 acres, and parents maymake irrevocable about one-fourth of the agricultural conservation transfers of lands to trusts for minor children. program payments in 1964. Yet, farms under 140 Also, one owner can lease project lands from acres in size comprised more than half of the another to increase the size of his farm operations. total number of farms. Currently, there exists approximately 250 thou- The Commission recognizes the need to continue sand acres of project lands in excess of the 160- three-fourths of this excess a program of educational and technical assistance acre limitation. About to landowners to ensure continuance of good stew- acreage is within theCentral Valley project in ardship in conserving soil resources for future California, and much of it belongs to corporate generations. It also recognizes that many socially farms. The "excess land" arises fromestablish- owned desirable land use adjustments are unprofitable for ment of irrigation projects on privately private landowners to make. lands in ownership units larger than permissible Elsewhere in this report the Commission has recommended a commercial farm policy that 11 MEMORANDUM OF THE CHAIRMAN OF THESUBCOMMIT- TEE ON IRRIGATION AND RECLAMATION TOMEMBERS OF THE 10 Derived from data presented by GEORGE A. PAVELIS, SENATE COMMITTEE ON INTERIOR ANDINSNLAB AFFAIRS. IRRIGATION POLICY AND LONG-TERM GROWTH FUNCTIONS. ACREAGE LIMITATION-RECLAMATION LAW : Committee Agricultural Bconomics Research, April 1965, pp. 50-60. Print, Apr. 25, 1958, pp. 7-11.

168 under Reclamation law. The Secretary of the The Com/minion reeanymende-: Interior has authority to fix the time limit con- (6) That the Department of the Interior en- sidered reasonable for irrigators to dispose of ex- force the 160-acre limitation on*ownership cess acreage, and this time limit, ranging up to 10 Units in the current irrigation project areasby years following project completion, isspecified in expediting the sale of "excess lands" inviable the contracts with owners to sell the "excess land." size farm units, where enforcement, asadmin- Some of the current "excess land" is in violation istratively interpreted, would not resultin of the contracts, and much of it is not under farms too small to sustain familiesabove the contract. poverty level.

139 Chapter 13

Adjustments in Agriculture, Forestry,Fisheries, and Mining The people employed in agriculture, forestry, forestry provides a supplemental source of income. fisheries, and mining supply the products and To many others, it is a low income business with materials for our food, shelter, clothing, and man- limited opportunities for expansion. Also, to many ufacturing industries. It seems ironic that those it is an opportunity for seasonal employment even closest to the mainsprings of our economic de- though the wage is low. velopment are those most adversely affected by Today's fishermen must have modern equip- it. They have borne the brunt of the forces of tech- ment, large-scale operations, and much skill to nological development. Often their increased stay above the poverty level. Poverty of fishermen productivity has been rewarded by lower incomes. is associated with small-scale operations, season- The ranks of the poor in the agriculture, for- ality of available work, and low wage rates. Tech- estry, fishery, and mining industries are joined nological advance in this industry adds to the by other rural people whose well-being is linked problems of the poor. directly with income and employment in these in- Similarly, miners now must operate complex dustries. Many villages and hamlets that once machinery rather than picks and shovels. The re- finctioned as majoi service and trading centers cent high rates of technological advance inmining for rural people now approach social and economic are exemplified by a decrease inemployMent by obsolescence. Many residents of these communities less than 10 percent in this industry during the experience poverty as severe as do those less for- three decades 1920-50, but a decrease of 30 per- tunate workers in agriculture, forestry, fisheries, cent during the single decade 1950-60.1 Despite and mining. increasing total output, employment in mining is Economic development entails a process of de- expected to continue declining in the foreseeable cline in employment in industries providing the future, particularly in coal mining. basic needs of people relative to employment in People most adversely affected by the processes industries supporting standards of living above in national economic development are those (1) these basic needs. When shifts in this employment in areas of high population density in relation to structure are rapid, as has been the case since 1940, quantity or quality of natural resources, (2) with a severe problem is experienced by those less able a traditional high degreeof dependence upon to compete either in the industries with declining farming, forestry, fishery, and mining industries, employment or in other industries. and (3) with limited opportunities for work in Today's farming on about the largest third of other industries. our farms is a highly- skilled operation. It is likely The areas with people in severe poverty include to become more so. These farms, numbering about the rural parts of the Appalachian and 'Ozark re- one million, account for over 80 percent of our gions, the cutover regions of the Lake States, many farming areas of the South, parts of New England farm production. Farm operator families without that became marginal or subniarginal for farm- the skills or resources to keep pace in the farm ing, coastal areas from Maine to Texas having technological race, and without offsetting nonfarm concentrations of fishermen, communities 'of mi- job opportunities; comprise a large part of the grant farmworkers in the Southwest, andAmer- poverty problem. ican Indian Reservations. These areas were by- Likewise, forestry, fishery, and mining indus- passed in the urban-based patterns of national eco- tries are experiencing high rates of technological nomic development. advance. Although some operations in forestry re- 1 U.S. DEPARTMENT OF AGRICULTURE, ECONOMIC DEVELOP- main unskilled, many specialized operations re- MENT DIVISION. RURAL PEOPLE IN THE AMERICAN ECONOMY; quire large investments in machinery and equip- and U.S. DEPARTMENT OF LABOR. TECHNOLOGICAL TRENDS IN ment. To many farmers and farmland owners, MAJOR AMERICAN INDUSTRIES, Bul. 1474, 1966.

141 Current Programs assisting the unemployed ingetting jobs, raising the minimum levels of wagesand in- Today's farm policy is dominated by acreage come maintenance, control and price support programs.Well over providing opportunities for betterhousing two-thirds of the federal cost of assistance tofarm- and health care, and ers, including exportsubsidies, is ;associated with . improving the quality of rural life. efforts to balance supplies with demandsfor indi- Some rural people will be assisted outof poverty vidual farm commodities. This is acommercial as they takeadvantage of these policies and pro- farm policy rather than a policy to alleviaterural grams. Others willhave added opportunities to poverty. Farmers receive benefits fromthis assist- avoid entrapment hi agricultui:e, forestry,fisheries, ance approximatelyin proportion to their con -. or miningwith incomes below the poverty tribution to total farm output. threshold. However, other programs areneeded In contrast. with agriculture, public programs to cope effectively with povertyof people in these for forestry, fishery, and mining industriesplace industries and with the conditionstending' to primary emphasis on research, technical assist- perpetuate poverty. ance, and regulation;Public credit in' support of -private forestry enterprisei is limited. to loans to Agriculture individual farniers or to cooperative associations, We believe technological advancein agriculture loy the Farmers Home Administration.Financial will continue at such a high rate thatproblems of aid. to the. fishing industry is of twokinds :(1) adjustment from farm to nonfarmemployment subsidies for fishing boat construction of up to :50 will be continual. This advance in agriculturewill percent of the cost and (2)* loans and grantsto not assist the rural poor. In fact, mostof the bur- fishermen for operating equipment. den of this adjustment will fall onthemthe farm- Independent operators in mining, as'well as in ers with inadequate resourcesto keep pace in ad- forestry or fisheries, may qualify for SmallBusi- justing the scale of operations andsanization in ness Administrationloans. However, to date, a production to attain or maintain viability. minute proportion of Small Business Administra- We believe a viable commercial farm economy tion loans have been for these purposes.2Price has major national benefits, and the farmsshould support programs in these industries arelimited be sufficiently large and efficient tosustain incomes to lead and above the poverty level with a minimumof public Owners of mineral resources receive benefits assistance to those -ngaged in full-timefarming. from tax policies such as depletion allowances. However, those farmers unable to attain ormain- Low severance or property taxes on minerals by tain viable farm units, and without nonfarmin- State and local governments also benefit ownersof come to bring themabove the poverty level, need mineral resources. assistance either in gaining access to nonfarm sources of income, crincreases in farm income, or Problems and Recommendations both. Our current farm programs relating to supply The mral poor who ,work in agriculture, fores- considerable try, fisheries, and mining get limitedassistance management do result in a transfer of from current programs. Some of our current pro- income to farmers. But how much of this money justified because of their aid to goes to the poor ? grams partially benefits effect. A careful study of I he distribution of the rural poor actually have the opposite for se- Policies and programs recommended by this Com- of the various farm commodity programs lected years since 1960 reveals the following : 8 mission and contained elsewhere in this report, if the adopted, will assist the rural poor by The 10 percent of rice producers with smallest payments received only 0.1 percent- - creating and sustaining .additional income- $1 in eery $1,000of rice program benefits. earning opportunities, On the other hand, Ow 10 percent of producers preparing them for taking advantage of these opportunities through education and training, 3 JAMES T. BONNET'. THE DISTRIBUTION OF BENEFITS FROM SELEOTE& U.S. FARM PROGRAMS.(Unpublished report pre- *Unpublished data of the Small Business Administra- pared for. the National Advisory Commission onRural tion. Poverty, July 1987.)

142 --with-the-largest payments received 48 percent percent of what a comparable amount of labor and of theSe benefits, and the top 1 percent of capital would earn in -nonfarm-use& producers in size of payments received 15 per On the other hand, farmers, with, less than $5,000 cent of the-total. in value of sales received net incomes averaging o The 10 percent of wheat producers with the only 31 percent of what comparable resources Sinallest payments received 1.5 percent of these would have earned in nonfarm uses. It- would have 'benefits. The 10 percent of producers with the been necessary to nearly triple the prices of farm largest paymenti-reCeiVed 44 percent of these products to' increase the returns 'on these small benefits, and the top 1 percent of the producers farms to levels that compared favorably with re-, in size, of payments received 12 percent of the turns for comparable resources in nonfarm uses. total. Furthermore, even with a tripling of farm product prices, many of the low income farm operators still The 10 percent of feed grain producers with would be in poverty because of their limited the smallest payments received. 0.5 percent of the benefits of feed grain programs ($5 of resources, Thus, any conceivable price policy for commer- 10 percent of producers every $1,000). The cial agriculture, within the range of acceptability with the largest payments received 30 percent to the American taxpayers, would contribute very of these benefits, and the top 1 percent of pro- little to solving the poverty problem in rural ducers in size of payments received 9 percent America. of total benefits. OBJECTIVE OF COMMERCIAL FARM POLICY.We The 10 percent of cotton producers with the believe supply control programs for commercial smallest payments received less than 1 per- agriculture are needed in. order to avoid problems cent of cotton program benefits; the 10 per- of vast oversupply, or shortages, of food and fiber cent of produCers with the largest payments products. However, the supply problem in Ameri- received more than half of these benefits; and can agriculture is distinctly different from the low the; top 1 percent of producers in size of pay- income problem of rural people, and we believe a ments received 21 percent of the benefits. separation of these problems is essential for design- The 10 percent of sugarcane producers having ing efficient programs for coping with either. . the smallest payments received 0.4 percent of the benefits of sugarcane program& The half The Commission recommends --- of the produeers with the smallest payments received only 4.2 percent of the benefits. On (1) That commercial farm policy be oriented the other hand, the 10 percent of sugarcane to the objective of supplying the food and fiber producers with the largest payments received products the nation wants for domestic uses nearly three-fourths of the benefits; and the and for export at the least attainable public top 1 percent of producers in size of payments cost. received nearly one-fourth of these benefit& We believe efforts are being made to reduce the The distribution of benefits of other commodity cost of farm programs, and we encourage continu- programs---tobacco, peanuts, and sugar beets ation of these efforts. also were skewed markedly toward the upper income groups of farmers. It is clear that the price COORDINATION OF FARM AND OTHER PROGRAM.-- Even though the primary purpose of commercial support and related programs do very little for the farm policy should be to insure production of the rural farm poor, and nothing directly for the rural supplies of food and fiber products the nation nonfarm poor. Their existence, if defensible, must wants, this objective should not be pursued inde- be justified entirely on other grounds. pendently of other economic objectives Our cur- Another study,* using a different approach, in- rent farm policies tend to focus strictly upon the dicates that, in 1966, farmers with value of sales of economic well-being of commercial farm operators $20,000 or more received net incomes averaging 129 and landowners, to the exclusion of the interests of farm laborers, tenants, rural communities, and so- 4 U.S. DEPARTMENT OP AGRICULTURE. PARITY RETURNS POSITleON or FARMERS. Report to the Congress of thetrnited ciety at large. States. 11.S. Senate Doe. 44, 00th Cong., 1st Sess. 57 pp. Public costs of farm programs, or program Aug 10, 1907. changes, can exceed the direct treasury costs. For exanaple, the drastic reductions in cotton acreage Similar language is used to express how payments in 1966 wrought hardship on many who were de- shall be shared under the wheat, feed grains, and pendent upon work in cotton production for their cropland adjustment program& livelihood. Although these workers eventually Limited information is available for assessing would have been displaced by technological ad- the practices used in determining how program vance in cotton production, the magnitude of the benefits are shared between tenants and landown- acreage change, coupled with the lack ofantipov ers. These shares are determined byAgricultural erty programs to take up the slack, brought forth Stabilization and, Conservation Service county a social cost inadequat ly considered in the acreage committees. However, the legislation and adminis- reduction decision. We believe the problem centers trative procedures: permit wide variations in farm on lack of coordination of farm program changes program payments shared by tenants andshare- with implementation of other programs. cropper& The Commission believes that there is need The 61 anunieeion recontmencle for more explicit guidelines, expressed in legislation, than now exists for insuring fair and equi- (2) That changes in farm programs for ad- table sharing of farm program benefits by tenants justing supplies of food and fiber products be and sharecroppers. coordinated with other programs designed to assist people adversely affected by these changes. (3) That the Department of Agriculture The Commission believes the Congress and the sponsor studies on sharing of farm program executive branch should review farm policy forma- benefits between tenants (including share- tion procedures and amend existing legislation, as croppers) and landowners for the purpose of needed, to permit the public interest to be more establishing guidelines, for incorporation into adequately expressed in commercial farm policy. farm legislation, on how individuals under We believe farm policy decision making should various tenure situations shall share in farm give more consideration to the needs of the nation program benefits. as a whole than it has heretofore. DISTRIBUTION OF FARM PROGRAM BENEFITS: The Commission questions, whether it is neces- The distribution of farm program benefits should sary to make large cash payments to large-scale be given high priority in considering farm pro- farms (including corporate farms) in order to gram changes. One of the Commission's concerns is attain-supply control objectives. Current legisla- whether tenants are getting a fair share of farm tion does not limit the size of payments to any one program payment& participant in farm programs, although a number Farm legislation gives the DepartMent of Agri- of efforts have been made in the Congress to limit culture considerable flexibility in determining fair these payment& Total payments to a single farm and equitable sharing of farm program payments ranged up to about $2.8 million during 1966, and between tenants (including sharecroppers) and nine farms each received more than $1 million in landowners. For example, in cotton programs, the payments (Senate Hearings Department of Agri Food and Agriculture Act of 1965 (Public Law culture and Related Agencies Appropriations, 90th 89-321, Title IV--Cotton, Sec. 401 (10) ) states Cong., 1st Sess., Pt. 3,19.67.) The Secretary slat" provide adequate safeguards to A major drawback to designating a specific up- protect the interest of tenants and sharecroppers, includ- per limit to payments to an individual producer is ing provision for sharing diversion payments on a fair the frequent change in farm programs and the por- and equitable basis under this subsection. The Secretary tion of the benefits distributed in direct payments. shall provide for the sharing of price support payments For example, in recent years, price sUpports for among producers on the farm on the basis of their respec- some crops, such as wheat, feed grains, and cotton, tive shares in the cotton crop produced on the farm, or have been shifted from indirect payments through the proceeds therefrom, except that in any case in which the Secretary determines that such basis would not be government participation in markets for these fair and equitable, the Secretary shall provide for such crops to direct payments to producer& Also, new sharing on such other basig as he may determine to be programs to deal with excess supplies of farm fair and equitable.' products, such as land diversion programs, have added to the portion of the benefits dispersed in second suggests the need for supervisory or man- direct cash payment& agement advisory services, either with or without Another problem in designating an upper limit a connection with extension ofpublic credit, hi payments is the change in overall cost of the Elsewhere in this report, the Commission has programs as the supplysituation changes. The recommended special programs to provide inten-, major purpose of the payments is to achieve supply sive management services to low income farmers control objectives, and this is the only purpose of who have limited potential for adjusting to non- the land diversion program and associated pay- farm employment Also, the Commission has intro- ments. The Commission believes that a successful duced recommendations which, if implemented, implementation of a commercial farm policy, would permit many to gain access to nonfarm as expressed in the firstrecommendation of this sources of income. There remains themajorprob- chapter, will substantially reduce the overall level lem of increasingncreasing the size of farms for those who of payments to producers and thereby reduce the wish to engage in full-time farming. concern about the size of farm program payments The thousands of low production farms concen- to any one prbducer. trated in areas of .rmal poverty, often on land Nevettheless, payments to large-scale producers marginal or submarginal for farming, pose an should be the minimum necessary for achieving the especially difficult problem in policy. In some coun- production of fobd and fiber products the nation tries, such as Sweden and Holland, farm consoli- wants. An upper limit on these payments should dation and enlargement programs are integral vary from year to year and among different com- components of national policy. In particular, these modity producers to permit taking into account programs are coordinated with programsin man- the overall supply and demand situation for individual products and the type of farm legislation power training and mobility assistance. Unfortunately, a =large proportion of our low being implemented. income farm operators are boxed inthat is, they The C on-minion recommends are past the prime work' age,and they have limited potential for training designed to make them (4) That the Secretary of Agriculture be skilled nonfarmworkers. Furthermore, many are given authority to fix limits each year on total farming by choice, and they want to continue farm program payments to individual pro- farming. This Commission respects the occupa- ducers which would be consistent with attain- tional preferenees of the rural poor. However, ing annual supply objectives for individual many those to farm because theylacked realistic farm products, and that he make these limits opportunities for nonfarm sources of income, known to the public well in advance of the Others are literally tied to an inadequate farm planting of the crops being supported. because of family responsibilities. When the recom- ENLARGING SMALL FaRikts.The Commission mendations of this report are implemented, and the believes that family farms should be of sufficient low income farmers are adequately informed of size, and have operators with sufficient managerial their alternatives, no doubt many will desire to skills, to sustain incomes to operators and families shift to nonfarm employment. Others will want to engaged in full-time farming above poverty levels, continue farming, but on a larger scale. Policies and programs should assist in creating a The Commission proposes a voluntary program rural environment where family farms can pros- which would enlarge low income farms in rural per. The existing millions of lowincome farms areas and, at the same time, wouldpermit changing attest to the shortcomings of our policies and the use of land submarginal for farming.Imple- programs. mentation of the program should be in coordina- The distribution of benefits of farm programs tion with economic development programs in suggests two interrelated problems in low income designated area development districts containing farming. (1) too few resources, and (2) ineffi - concentration of low production and small farms ciency in the use of these resources in farming. The It also should be carried out in connection with first problem indicates a need for programs to manpower training, mobilityassistance, and rural bring about enlargement of the farm business; the industrialization programs. The Commission reemanends-- to increase the income of those in poverty who, by choice, wish to continue farming until retirement. (5) (a) That the opportunity for selling farm- However, the Commission believes that public land at a tair market price to the Federal Gov- credit should not be used to insure perpetuation ernment be provided low income owners who of low income fanning. wish to retire or shift into nonfarm employment, and (b) that such land purchased be The Commission recommends-- either diverted to public uses if submarginal (6) That public credit to low income farmers for farming, or resold or leased to individuals place primary emphasis upon adding sufficient for creating farms of viable sizes.f assets to nonviable farms to make them viable, or to financing the purchase ofviable farm This recommendation complements the proposed units. program presented elsewhere in this report to provide extension of managerial services to low income The Commission recognizes that many of the farmers who wish to continue farming until re- boxed-in farmers continue to need supervised tirement If they wish to continue farming, they credit to operate and to improve the operation of will be assured an :opportunity to sell their land at their farms. In addition to the regular operating loan program of the Farmers Home Administra- , a fair price upon retirement if they sell to the Federal Government, resale or lease then would tion, opportunity loans authorized by the Eco- permit consolidation with other land holding& The nomic Opportunity Act of 1964 extend this kind public land-buying program also would provide of supervised credit to low income farmers. The assurance to those low income farmers desiring Commission urges continuation of these programs, training and nonfarm employment that disposal with increased assistance to the boxed-in low inof their real estate would not be an obstacle to ful- come farmers. filling this desir& Forestry and Fisheries The recommendation does not discourage con- Implementation of the recommendations else- tinuation or increase in rural residences to accom- where in this report will provide options for many modate those who wish to live in the open country, of those employed in the forestry and fishery in-. perhaps farm on a small scale, but who mainly are dustries to substantially increase their incomes. dependent upon nonfarm income for a livelihood. Manpower training and mobility assistance, mini- Many of the people now living on low income mum wages, public service employment, and man- farms would turn to part-time farming or to full- agement advisory services will help. However, the time nonfarni employment if the recommendations sall-scale, independent operations in these infor expanding nonfarm employment opportunities dustries pose problems similar to the low income as presented in chapter 10 of this report are put farm problems. These problems are 'especially' into effect. acute for people past the prime work age. The implementation of recommendations pro- Many of the independent operations in forestry viding for additional nonfarm sources 'of income actually are farms with timber, or timber prod- will help many people now living on low income' ucts, as the major enterprise. Recommendations farms to increase their incomes. We believe that for the small farms should also apply to this profitable farms can be created in areas of low in- group. come s farming if the farm businesses can be in- The Commission recognizes that supervised creased. However, in view of the rigidity of the credit may be of considerable assistance to low farm size structure in many of these areas, we be- income operators of forestry fishery enter- lieve the farm enlargement program proposed here prises already established in these industries, who would reduce the chances of future generations choose to maintain these activities until retirement. being tied to low income farming. It does not wish to discourage such loans, par- Puma CaBortThe Commission recognizes a ticularly if the operators can be lifted out of need for public credit to prevent farm families poverty by this assistance. However, because of above the poverty line from sinking below it, and the seasonality of forestry and fishery employ- See comment by James T. Bonnen, James 0. Gibson, ment, it would be difficult to assist many into full- and Vivian W. Henderson at end of this chapter. time employment in these industries. There may be 'a, future technological break- lie revenue from coal resources, coupledwith rapid through which .would increase the .prOductionof rates of exploitation. Continuedencouragement of fish meal for use as protein for animal or =human exploitation of these resources by outside interests consumption.. Such a development could reduce through depletion allowances` willprematurely' re- the seasonality of employment in the fishing in- move the economicbase in many communities in dustry. However, part-time public service em- Appalachia, and add to the poverty in theregion. ployment still may be necessary to alleviate the Property and severance taxes on mineral re- hardships due to the seasonality of the employ- sources varyconsiderably among States, and ment in forestry and fisheryindustries: among counties withinStates, even for the same resources. The Commissionbelieves that the States The Commiesionlveommends should take the leadership in reducing or eliminating these variations. However, any action to (7) That loans, grants, and other public as- unifrm sistance to those with private operations in the make mineral resource taxation more forestry and fishery industries be geared pri- should be precedoid by studies to determine exactly marily to establishing and maintaining viable what the tax structure is for the various resources, and to estimate the economic consequences ofvari- businesses, and to reducing the adverse income in this structure to in- effects of seasonality of employment to people ous magnitudes of change dustries, labor, and State and local revenue. Pub- in these industries. lic income from mineral resources is importantfor Mining supporting schools and other public facilities needed for reducing poverty. Our natural resource industry tax policies are inconsistent, and this is particularly evident in the The Commission recaminveast mining industries. On the one hand, depletion allowances subsidize private exploitation of our (8) That the Federal Governmentinstitute natural resources. On the other hand, property needed reforms in depletion allowancesand and severance taxes amount to payments for rights sponsor legal-economicstudies of taxation of to private exploitation of these resources. mineral resources for the purpose of develop- The Commission's view is that payment should ing guidelines for initiating needed reformsin be made to our public treasuries for the rights of taxation of these resources. private industry to exploit natural resources. Even During the last quarter of the 19th century and though we have vast supplies of natural resources, they are exhaustible if they are stocks such as the first part of this one, coal companies organized minerals, and the public interest in these resources by northern and eastern speculators, and including extends beyond private interests. The Commis- some foreign interests,acquired ownership of most sion believes that the public interest in natural of the coal resources of Appalachia. The companies resources includes a financial interest in the re- acquired mineral rights at very low cost, usually turns therefrom, as well as an interest in proper in such a manner as to avoid payment of local prop- rates of exploitation over time. erty taxes, and without obligation to compensate Depletion allowances range from 10 percent for owners of surface rights andcommunities for coal and sodium chloride, to 271A percent for oil damages incurred in mining operations. It must be and ga& The effect of these allowances is to en- recognized that the mineral rights were acquired at courage a more rapid exploitation of natural re- a time when mining technologypermitted opera- sources than otherwise would be the case. tions with minimal surface damage to land. How- One major problem with depletion allowances ever, the situation changeddrastically with tech- for coal, is that they encourage exploitation of the nology permitting massive strip mining operations coal resources of the Appalachian region by out- since World War IL side corporations. Poverty in Appalachia is severe, Appalachia has paid a terrible price for the loss and coal is the only physical resource with po- of its natural wealth to outside interests, and for tential for sustaining many local economies in the the lack of safeguards to protect communities and region. One major reason for the severe poverty in owners of surface rights to land. Inaddition to tax the region is the long history of limited local pub- reform, there is need for legislation to assure that

276-496 0-67--.-11 the cost of surface damages is borne by those re- ends are desirable, the recommended program must sponsible for these damages. This is a problem not be administered carefully and watched closely to only in Appalachia, but wherever miningresults prevent perversion of the Commission's intent. The in a scarred and unproductive countryside. history of many programs in rural America is full of collusive relationships between local adminis- The Caminimitm.reammend8 trators and, large landowners to the detriment of the poor, and of policies and practices hostile to (9) That States enact legislation, where nec- racial and minority groups. Such a program as essary, to insure fair andequitable comp'ensa- of this, if administered along traditional lines in tion by owners of mineral rights, to owners many rural counties, especially in the South, very surface rights to land, for any surface damages likely will result in depopulation of unwanted incurred in mining operations. minority concentrations and permit further land- Memorandum of Reservation by James T. grabbing by already large landholders. The idea of assisting the smaller, marginal sized farms to be Bonnen, James O. Gibson, and Vivian enlarged to viable sizes, accompanied by fair and W. Henderson Concerning Recommen- equitable compensation to those who decide to dation 5 change from marginal farming to other occupa- This program is intended to increase the options tions, has much merit however, it must not be per- of low income farmers who decide on occupational mitted to serve anti-minority attitudes, or to facili- changes, and to increase the assets of those desiring tate further concentration of land ownership in the to be full-time farmers. While we agree that such hands of a few.

148 Chapter 14

More Effective Government for Rural Opportunity The conclusion is inescapable that the severe over larger areas and becoming fewer, have been poverty in rural America cannot be overcome increasing--in 1962 there were more than 91,000 without governmental assistance. Some of our gov- units of local government in the 'United States.I ernmental machinery, however, needs drastic over- Two things account for the growing number. hauling if it is to attack rural poverty effectively. First, as the population grows, additional inde- Much of it was designed to meet the needs of a pendent municipalities are often created in urban time when rural and urban people were separate, areas, instead of extending the corporate limits, of distinct types, isolated from each other; when the existing cities. Second, special authorities are population was less mobile; and when the pace of created. technological change and of transportatioli was The latter are created for many purposes, among slower. We can't expect this machinery to do which are rural fire protection, soil conservation, today's job, even with new administrative proce- water supply, hospitals, and libraries They are dures, or agreements among agencies to coordinate, usually created to fill, a need which general gov- or new organization charts. Some rebuilding will ailments are not able or are unwilling to under- be required. take, for instance because they have reached the The, purpose of this chapter is to recommend limits of their taxing or borrowing authority. the basic changes in local, State, and Federal ad- The difficulty with special authorities is that ministration of government that are required to they are limited in function and not directly ac- serve the needs a a rural America now closely countable to the electorate or its representatives linked with urban America. Therefore, their operations cannot readily be coordinated with public policy for the area. The Local Government's Role in Rural excessive spread of special authorities has tended Opportunity ) fragment communities and to disorder public Important as local government is, candor com- decision-making. pels the conclusion that it is marked in rural areas There are, fortunately, countertrends running in particularly by inadequate, revenues, unprofes- the right direction. In some areas groups of local sional administration, undersized jurisdictions gove-nments have joined together in planning or and lack of real interest in the problems of poor action organizations, or, both, for economic devel- people. opment and for antipoverty, programs. Several The structure of local government must reflect State3 have led in organizing multicounty pro.. the fact that, the area covered by economic and grams. Successful experiments have been conducted. human activity, has broadened. Contacts which on the joint provision of services by neighboring once took place within the confines of a county and counties. which centered on a rural, marketplace town now The States are as important to reform of local often spread over several counties and. involve a 'government as are the localities themselves, be- hierarchy of cities and towns and counties. This cause they create local units and delegate powers larger area must be recognized, strengthened, and to them. In the view of the Commission, the States used for the sake of the economic and social development of the area and its people. Governmental have not generally lived up to their responsibilities machinery must be developed which can plan and for reorganization, of local government and for administer effectively over the whole area. 113.S. CONGRESS, SENATE. HEARINGS, SUBCOMMITTEE ON Broadening of the area of activities has been a INTERGOVERNMENTAL RELATIONS OP, TUE COMMITTEE ON GOV- fact for some time, but the units of local govern- ERNMENT OPERATIONS, PT. I, THE FEDERAL LEVEL. N Ui Cong. ment rather than developing so they can operate 2d Sess., 1967, p. 2. 149 providing it with the authority and tools to do its or through procedures which allowthem all to have job. The Commission urges both levels to study a voice and which are aimed atsecuring commit- the findings of this report and to give continuing ment to concerted action. attention to local organization and administration. In some instances the area organizations may be, in effect, subdivisions of State government. In The Commission, recommends- others they may be composed of specially designed coalitions including representatives of local, State, 1. That area development districts be estab- and Federal government and private interests. lished under State law and assistance; that The most effective model Would be a league whose they be so organized as to involve coordination members are local, general-purpose governments and cooperation of local government and pri- such as counties and municipalitieseffective be- vate interests in planning andaction; and that tautof their revenue-raising and action powers, they have professional staff assistance avail- and their representation of 'the entire electorate. able to them. Coupled with formal organization, in each case, are possibilities for theinvolvement of advisory The concept and purposes of area development groups, with general scopes of interest orfor ad- districts are discussed in chapter 10. In essence vice on specific subjects, such as antipoverty action, they should be able to plan for coordinated, com- transportation,or prehensive economic and social development within agriculturaldevelopment, their areas, to promote action to carry out the education. plans through local, State, and Federal programs While the governing board of the organization or through private organizations,and to raise or will provide decision-making 'authority, political receive revenues to finance their operations. A full responsibility, and the point of view of laymen, range of responsibilitieswould aIso include as- there should also be a professional staff, headed sumption of direct operating functions; for ex- by a director, with as broad a range of disciplines ample, areawide library systems, health programs, as possible. The fact that citieshave, had good administration of an area parks system, antipov- staffs has been one reason that they have been erty programs, industrial development, vocational successful in using Federal. and State aids in co- training, or pollution abatement ordinated programs. Thus, a prime purpose of Districts in some States can be organized under creating area development districts is to make pro - existing laws; in others further enabling acts will fessional talent available to all areas--rural and be needed. Complete legislation should provide urban. State legislation should provide for staffing. rules for composition of the district governing The district must have funds for its operations, board, and it should be flexible enough to allow which could come from member governments, from for variations in the size of the areas as well as in State and Federal grants, from donations, or from the numbers of governments and interests involved. Legislation shouid alSo provide for selection of any revenue-raising authority grantedby the officers and for general rules for conducting the State. district's affairs. However, most States can begin The Commission believes that economic and so- organizing districts using State and loeal initiative cial development, including antipoverty programs, and cooperation, under existing legislation, while should be coordinated and planned on an area gaining experience on which to base further en- basi& Whereas the area development type of orga- abling legislation. nization has tended to focus on economic develop- Each State and 'area will have different prob- ment, it must ho broad enough to include programs lems in establishing districts, because of the varia- for people. The Commission has outlined an effec- tions in laws and practices concerning State and tive form of area organization which can help local government. The specific situation will de- significantly to build the new type of rural-urban termine the strategy to be used in creating them. community which is needed and which can help Since the point is to coordinate action and plan- to create opportunity for the rural poorand Itor ning, the organization should involve both gov- all of rural Americas It is urged that area develop- ernment and private interest& This can be ment districts be formed and tested as rapidly as accomplished either through direct representation is feasible.

150

liket4111011101111POONOMNOWN00.41~....Powe The Commainsion recommends- Independent organizations are very important devices in organizing effective antipoverty action 2. That general-purpose government be used for communities, and in many places theyhave for the administration of public programs at been the only way to get it done, The Commission the local level wherever possible. feels that they are useful and necessary andthat they should seek close cooperation with local gov- This is preferable to creating special authorities ernments, and vice versa. Poor people, likeall General-purpose orquasi-publiccorporations. people, want a voice in decisions that affect them, government (for instance, counties and munici- and they have been able to have it in the inde- palities) has policy-making and adMiriistrative pendent groupsbut not so much in local govern- powers spanning a wide range of publicneeds and ment-run programs. The object, whetherlocal can coordinate and administer complex programs antipovertyprogramsareadministeredby for maximum benefits to the people. This cannot government or private agencies, should beeffective be done as readily when special authorities or pri- use of the available toolsand involvement of the vate corporations conduct public programs. As an entire community. Each community must work out operating procedure there should be an attempt the means to suit its own situation. to locate programs within county governments in rural areas and to demand high-standard perform- State Government and Rural ance from them. Programs should be set upoutside Development of general-purpose government only when it is evident that it cannot administer the programs The State level of government has a key position effectively or will not accept responsibility. in rural development and in any attempt to deal with rural poverty because, like local government, The Convini88i012 reeammend8 it touches people frequently and directly. However, 3. That local governments provide active and State government, in the Commission's view, has constructive assistance and administration in generally failed to adjust to the needs of modern antipoverty programs and that they adequately American society. The organizational and adminis- involve the poor in the planning and administrative methods of many States have not been tration of these programs. brought up to date, sufficient revenues have not been raised to meet the needs of their people for All governments in the Nation are charged with public programs, constitutions need revision to re- promoting the welfare of the people. Local govern- flect modern governmental practice, and local gov- ments, both general and special purpose, thus have ernments have not been delegated the powers they a responsibility for promotingopportunity for the need to conduct their affairs nor the revenues with poor. Poverty in a community depressesit morally, which to finance them. socially, and economically. It reduces the tax base. In recent years the failure of States to recognize No local government can afford it; yet some have and cope with urban problems has been frequently cooperated only halfheartedly, and others have cited, and this failure has been attributed with openly resisted antipoverty programs. Those which some justification to rural-dominatedlegislatures. make them an integral function of local govern- What is less well-recognized is that the attitudes ment can bring to bear all of their considerable in State government which have hampered the resources on money, personnel, and power,using cities have also hurt the rural areas, because they Economic Opportunity Act funds as catalyst. The fail to recognize that the fortunes of rural and Commission urges that all local governments as- urban areas are interlocked and that rural areas sume this responsibility and involve the poorfully cannot survive independent of cities. Towns and in the program and decision-making. cities serve as the administrative, communications, It is recognized that government tends to devote its attention to matters on which there is effective service, and market centers for rural people; many civic pressure. So, when programs affecting the rural residents work in them. Conversely, towns opportunities of poor people are administered by thrive on the market provided by rural commu- local government the poor must organize them- nities, city people eat the produce of the farm, in- selves and their allies to monitor the programs and dustries dependent on city services locate in rural to exert civic and electoral pressure. places, and many people who consider themselves

151 urban, because they work in cities and use their Raising adequate revenue to meet responsibilities cultural services, actually live in outlyingareas. has been difficult for the States. Some of them have Most of the States have done relatively little depended on sales and real estate taxes, whose specifically for the poor, although theyare con- revenue growth does not match economic growth stitutionally, responsible for the 'welfare of all of and which fall heavily on the lower income group. their people and although they have 'traditionally Most now have income taxes, though there are been looked to for programs in the fields of educa- practical limitations on the amount of revenue tion, health, welfare, and economic development, which can be raised in that manner due to the prior all of which are essential in dealing with the prdb- claim on incomes of the federal income tax. lems of poverty. Some of the States haveeven used Some of the States have tried hard in the fiscal their powers to maintain the status quoto keep field. An item of evidence is that State and local the poor in povertyeven attempting to block out- debt has quintupled in 20 years while the Federal side assistance. Such actionseems to this Commis debt has increased fractionally .° Also significant sion indefensible. is the fact that many of the poorer Statesare well The Commission calls on all of the States to help up on the scale in "how hard they try"that is, solve the problem of poverty, to continue thegov- their expenditures on education and other domestic ernmental reforms some of them have begun, and to programs in relation to per capita personal in- address themselves to the deficiencies cited above., come are relatively high.° Though citing the faults and weaknesses of The State and local personnel rolls have doubled State governments, the Commission does not mini- while the Federal roll has increased fractionally mize their accomplishments and their potential over the most recent 20-year period; yet the short.- for effectiveness. Theyare vested with essentially age of trained and qualified employees is a 'serious the same executive and legislativepowers in State problem. The pay scales are low compared to domestic affairs as is the Federal Government, and Federal standards, which is traceable to the can, when they are so inclined, act effecvtively. revenue difficulties. -They.providea channel for initiative anda healthy .Notwithstanding the personnel shortage, the diversity of approaches to the solution of prob- States have had to shouldermany new or addi- lems in the public domain. Antitrust statuteswere tional responsibilities, in part because of the large first developed by States, aswas the, first legisla, number of aid programs passed by Congress in tion concerning minimumwage and maximum recent years. Coordination of Federal aids with working hours, the first antidiscrimination, child each other and with State programs has becomeit labor, and unemployment insurance laws, .and the major concern. first rural antipoverty program.2 .The Commission does not agree with those who States are in a good position to plan and to set would bypass State government or weaken its role. priorities within a national framework. While the All levels of. government must be used to best effect, Federal Government looks atprograms and prob- and the States can be a Major resource in the battle lems in aggregate terms and local goVernment againk Poverty and for the welfare ofour people views them in particular, individual terms, States if they assume their full responsibilities. If they are so located inour governmental structure that do not, the Federal Government will have no choice' they can combine these two viewpoints. but to fill the gaps, and to bypass the States in the The States (with local governments, whichare administration of programs for the legitimate subdivisions of States) spend about twiceas much needs of United States citizens must be met. money on civilian-domestic programs as the Fed- eral Government and have wellover twice the ex- The thYMMoi88i(Y12 recommends. penditures in education, welfare, and health .° In addition, the States and local government§ spend' 4. That State governments conduct compre- or administer some $15 billion of Federal aid.4 hensive planning programs to serve as guides for the coordinated administration of State 2 TERRY SANroRn. POVERTY'S CHALLENGE TO THE STATES. In Law and Contemporary Problems. XXXI (1) :77-89. 5/bid., p. 80. Winter, 1666. 6 U.S. RUMMY OF THE CENSUS. GOVERNMENTAL FINANCE IN 3 U.S. CONGRESS, SENATE, Op. Cit.; pp. 77, 79. 196.4-65. G.F. No. 6, p. 50. (rev. Feb. 1967). 4/bid., p. 74. T U.S. CONGRESS, SENATE, op. cit., p. 81.

152 and Federal services, and for interrelated functions of local government, and since local rural-urban areas. powers derive from the States, the States must authorize districts. Legislation should describe The need of the rural people today is not simply their functions, powers, governing board makeup, for more money to be spent on more programs, staffing, advisory groups, and fmancing. Federal but for more effective use of programs that exist technical assistance should be made available to To be effective they must be offered in combina- the States in the drafting of this legislation. tions, which will vary from person to person and The States need a consistent set of multicounty from area to area. Situated as they are between districts for field operations so that agency coordi- the Federal and local levels and possessing strong nation will be possible in area development. State powers, the States can unite the large policy per- governments, using their planning staffs, should spectives of the Federal Government with the draw district boundaries based on economic and specific needs of small areas and mix in their own social studies and after consultation with local monies and services. They can, for instance, blend governments and interests. District delineation Federal aids to education with their own educa- studies should be undertaken as an element of State tion programs. They can help plan the necessary planning programs. To insure that State districts mix of public facilities and social and economic are eligible for Federal planning funds, theStates programs for the welfare and development of a should also consult with the planning unit of the muiticounty district within the State. Executive Office (recommendation 10) or its dele- The planning function in a bate government gate offices while boundaries are being drawn. should span all the administrative responsibilities Clear Federal guidelines for such eligibility should of the State, and it should be so located in the struc- be provided, following the principles set forth in ture of government that it can collect and use in- chapter 10. Interstate districts should be created formation from all line agencies ac well as other where logical county groupings cross State lines; sources, analyze it for the Governor, and assist him the creation of these districts can be facilitated by in making program and budgeting decisions. Since Federal consultation and technical assistance. the Governor is the chief planner, the planning Congress should give prior consent to interstate group must be responsive to his needs no matter compacts 14 them, setting forth standards for the where it is in the table of organization. making of the compacts but not requiring subse- Each line agency must also plan carefully its quent approval of each one in order to establish it. operations within the context of overall State Federal agencies should be instructed to assist policy. Each department should administer a set of district programs by acting in accord with their specialized services or programs, but each should plans, wherever possible. Each agency should work be alert to the need to combine its *services with out appropriate means of cooperation, which will those of others, based on plans of States and area vary, depending on whether the agency has county, development districts. State, or regional offices and on the functions they It should be noted that if the States take the perform. Federal agencies should solicit comments initiative in planning to meet the needs of their from the districts before acting (recommendation people, and if they exercise leadership,they can be 10), and the Federal planning assistance office persuasive when they ask the Federal Government should be responsible for monitoring the coopera- to follow. ' tion of the agencies with the districts (recom mendation 10).8 , The COM. 171i882:022 recommends 5. That the States set the boundarieS of area The COMM288tiOtt recommends- development districts and provide any enabling 6. That the States provide planning assist- legislation needed for their creation ; that dis- ance grants to area development districts and tricts be used as administrative areas by State communities. agencies; and that Federal agencies conduct their programs, to the greatest extent possible, s The intent is to carry out and extend the scope of so as to assist district program objectives. Bureau of the Budget Circular No. A-80, Jan. 31, 1967, concerning coordination of development planning for pro- Since the districts will perform some of the grams based on multijurisdictional areas.

153 The States need to influence the location and tional operations in rural areas. But theDepart- character of economic and social development ment of Labor and the Departmentof Health, within their borders, because they are govern- Education, and Welfare can assist in training a mentally responsible for it to their electorates. rural resident for a new job. The Department of They do not have funds for massive programs and the Interior may help develop recreation lands, projects in allvernmental functions for all local- and it administers education programs for Indians. Ales, but they can invest in planning and thereby The Department of Transportation matches the influence development. If Federal planning assist- State's highway money for the rural man's farm- ance grants are set, fornstance, at-two-thirds or to-market or home-to-industrial-job trip. The three-quarters, the States could assume a portion Department of Housing and Urban Development of the remainder and lighten the local or district can help him when he moves to acityor help his share.. home community build housing Tor put in a water system. The Commission reconnund8----' If he is poor, he may be given an opportunity 7. That the States provide strong programs to advance himself through the Office of Economic Opportunity'- assistance. of technical assistance in community. and area If he lives in a flood plain, the Defense Depart- development district. planning and development's Corps of Engineers may assist 'him by ment and in antipoverty work.. building a dam. The Department of `Commerce may provide a subsidy to attract a newindustry The States know their areas and communities . well and the capitals are not far from any places which will give him a job. Getting programs to the beneficiaries, the rural that want assistance. Furthermore, this is the way poor or anybody else, requires'organization. The to exert influence' on these p"rogra,msthrough Federal executive branch should be so organized leadership and help. It is more powerful and effec- that departmental programs can span rural-urban tive than the veto power they sometimes ask for; lines and provide necessary services to the people and it is a positive, rather then negative, tool. Studies have shown that, in general, State anti- where they are. A category of service should be administered by poverty technical assistance offices devote a large training as an ex- share of their resources to rural work.° Thus, they a single department. To use job ample of the present situation, if a community or are a major resource forrural areas. The Federal Government should encourage all States to assume State wishes to mount a job-training program it 57 separate this role, and channel technical assistance funds may find itself dealing with as many 'as program elements administered through seven ma- 'through the ones that do. The States, however, jor departments or agencies and a host of sub- Should. share in the financing of eclmical assist- units.10 It would have a similar problem in com- ance operations. - munity facilities, housing, or recreation and cul- This recommendation is intended to encourage the use of State governments as important tech- tural facilities. nical assistance channel but not necessarily as the If it wished to put together a comprehensive only one. Universities and private agencies can program for economic, physical, andsocial de- undertake some types of assistance very effectively velopment, it might find itself involved in most of the 170 Federal aid programs enmeshed in more and should be used where appropriate. than 400 separate authorizations. There could be Federal Administration of Services for negotiations with as many as 21 Federal depart- Rural OpportunitY ments and 'agencies and some 150 major bureaus and offices in Washington 11 Even more irrational Most of the domestic operations of the Federal is the fact that communities within an area de- Government affect the opportunities and fortunes velopment district might have to deal with dif- of rural people. The Department of Agriculture ferent agencies for the same type of aid, depend- comes to mind immediately, becauseof its tradi- ing on whether they were classified rural or urban. A community goes to the State capital to apply ITJS. ADVISORY COMMISSION ON INTERGOVERNMENTAL .111111r3 RELATIONS. INTERGOVERNMENTAL RELATIONS IN THE POVERTY 1° U.S. CONGRESS, SENATE, Op. cit. pp. 44-46. PROGRAM. April 1966, p. 136. Ibid, pp. 2 and 390.

154 for-Federal aide administered through the State, be asseuthled into combinations suited totheir re- but for other- Federal aid it would need an atlas quirementsfor instance, manpower training com- of Federal field offices. A Kentucky town would go bined with special types of education, or airport- to =Ann Arbor, Mich., to talk to the Bureau ofOut- and road-building assistance combinedAnto a door Recreation ; to Atlanta, Ga., for the Small transportation system, The design of these com- Business Administration and the Department of -binations can be very effectively by commu- -Housing and Urban Development; to Cleveland, nity organizations, and by area development dis- Ohio, for the Bureau of Employment Security; to tricts and State pluming agencies, the appropriate Washington, D.C., for the Office of Economic Op- level depending on the problems and areas under portunity and to Charlottesville, Va., for the De- consideration. partment of Health, Education, and Welfare. The situation would be similar for any com- The 0 OMITIVI86401?, recommends-- munity, because there is no uniformity in location 8. That no Federal department be specialized of Federal field offices or as to which States they as to rural or urbanservices; and that each serve. Nor is there anyuniformity in their scope department administer a distinct, functional of responsibility or authority, except that many of group of economic orsocial programs. them can turn down a project but not approve one Approval poweris usually reserved to The needs of the nation now require that its Washington. Federal departments administer services that cross There are attempts at coordination, some of them rural-urban lines, because the people andthe very successful. The most commoncoordinating economy cross them freelyand frequently. In fact, devices are interagency committees. They are usu- it is difficult now to distinguish between rural and ally confined to a specific subject; some exist for a urban people by place of residence or work. Agen- short time, some for a long time, and some are cies giving attention to special groups of people statutory. They are useful for working out a prob- or areas should besubunits of functional depart- lem on a short-term basis, but it is difficult to find ments. Area development districts andStates will experienced bureaucrats who are very sanguine play an important part in grouping functional about their effectiveness over the long haul. programs into packagesdesigned to serve their Given the ability of States, areas, and communi- area's needs, and in the Federal Government the ties to design combinations of programs suited to Executive Office of the President is the key to co- their needs, the Commission thinks that Federal ordination of the functional services. The Commis- domestic operations should be basically consoli- sion also suggests that the committees of Congress dated into groups of functional services (for ex- be organized so as to bridge rural-urban line& ample : education and training, commerce, health, natural resource development, agricultural de The,Commis,sion recommends-- velopment, transportation, and houshig). The 9. That Federal funds be earmarked bythe Commission recognizes that there are many pos- Administration in budget submissions andby sible groupings and that there is no one correct Congressinappropriationsinsufficient way. The principalcriteria are : that a depart- amounts to provide rural peoplewith services ment's services be similar; that they can be pro- at national standards. vided to both rural and urban people ; and that they can be combined with the services of other" Although the Commission wishes to have Fed- departments to meet the need of individuals and eral programs and policy-making span rural-urban communities through area, State, and Federal lines, it recognizes the danger that administrators planning. may not direct adequatefunds to rural areas. Fed- The Commission is impressed with the need to eral services to rural people are too often low- look at the whole person in designing programsto standard, and funding is short of the proportion serve his needsand ofwhole economic areas em- they need and deservesometimes as a resultof bracing interrelated rural and urban communities legislation and appropriation and sometimes of in designing area program& administrative action. Furthermore, due to dis- The people need consolidated, flexible arraysof tances involved, inadequate finances,and thesmall- functional programs available to them which can er numbers of leaders,rural areas characteristical- ly are slower than urban in organizing programs functions for the an, tipoverty efforts,specifi- and in making application. Creation of area devel- cally including the Community ActionPro- opment districts which combine rural areas with gram, have adequate fundingand remain in the urban and which have professional staffs will help Executive Office; and that, for the time beings overcome this, but for a long timerural areas will OEO continue to operate thosie programs it now continue to lag in this respect. All aid categories has underway. The Commission recognizes, wkich can help rural people, and especially those however, that OEO programs which have dem- which can provide economic opportunity to the onstrated their merit, will need a permanent poor, should reserve funds for these purposesand home to assure their continuation and maxi- avoid their early allocation to large metropolitan mum impact, and in duetime they should be in- areas which are first in line withapplication& corporated in the regular fabric of government by transfer of their operations to appropriate The Commission recommends- departments when 0E0 decides it is advisable, subject to continuing coordination byOEO 10. That assistance to State and local gov- through use of its control over funds ear- ernment comprehensive planning programs be marked for these. program& expanded to include area ,development districts and that responsibility for this type, of assist- This Nation must solve its poverty problem and ance be consolidated in theExecutive Office of provide opportunity to the poor. The start that has the President under one basic authorization. been made has shown what a large 'undertaking it will be and has clearly demonstrated that coordi- Coordinated policy planning for the Federal nated, large-scale resources from the entire Fed- Government is focused in the Executive Office, eral Government must be brought to bear. whose functions should also include program co- If widespread resources' are to be used they must ordination and liaison with, and aid to, the plan- be coordinated. The Economic Opportunity Act ning programs of area development districts and places the responsibility for coordination with State, metropolitan, and local government& 0E0 and directs other agencies to give preference The Commission feels that this placement of re- to applications for assistance made in connection sponsibility will best provide for coordination of with community action programs, which are locally the Federal Government's comprehensive program designed solutions to poverty problems, assisted planning with the Council of Economic Advisors' and approved by the Office of Economic Oppor- policy planning, consideration of national objec- tunity. The agencies have generally given only tives by States and districts, and for assistance by the Federal Government in carrying out State and token, if any, effect to this directive. local plans, because the Executive Office has the The result has been_ that antipoverty work authority required for getting departments to co- communities has had to use the only tools avail- operate. There is precedent for this type of grant ableprograms and mollies under the direct ad- assistance for planning within the Executive Of- ministration of the Office of Economic Oppor- ficein the Office of Economic Opportunity for tunity (special programs for the training and community action agencies and formerly in the education of poor youths, the job corps, work- Office of Emergency Planning for State emer- training and work-study, adult basic education, gency plans. Both provide technicalassistance to loans and grants for nonfarm businesses in rural areas, small business loans, andwork-experience other levels of government. programs). This kit of tools is far too limited in range and size. T lie croniinvission recommetyls Earmarking of funds is the most practical way it That adequate funds be earmarked, by to achieve coordinated action against poverty and the Administration in budget submissions and to carry out the intent of Congress that first prior- by Congress in appropriatiimS, throughout the ity be given to antipoverty work. The Adminis- Federal' Government for expenditure in locally tration should propose percentages or amounts to initiated, community-based antipoverty work be earmarked in each program category and Con- on apProval of the Office of EconomicOppor- gress should make thefinale determination in its -tunity; that the administration and innovation appropriation acts. Money in appropriate cats- gories throughout the goverment should be made Continuing attention is needed on these subject& available in this `manner =for use -in antipoverty- With it must go the power to act on intergovern. work and spent only on approval by the Office of mental problems in the nanie_of theTresident, and `Economic Opportunity. ready access to liim to inform him when his per- The Office of Economic Opportunity has been sonal action is necessary. The Commission feels extremely valuable as-an innovator and stimulator that a staff headed. by a Presidential assistant, with of antipoverty work. It has demonstrated that access to the advice of ahigh-level council of significant -things can be done to help the poor. Federal officials, would, be appropriate. Itowever, It has tried some measures that work and some that its specific form of organization would depend on do, not, and this is its proper roleone which hoNV the. President wished to use it, so the decision should be encouraged and strengthened. This Com- is a prerogative of the Presidency. mission believes that 0E0 should have adequate funds of its own for this purpose, in addition to Theorninti8sioo, reconmen18 the earmarked funds, and that if they are not 13. That there be established a consistent set granted the nation cannot undertake a serious ef . of regions for' Federal agency field operations; fort to eradicate poverty. that headquarters for the regional director of The Commission thinks that the Office of Eco- every agency be in the same city; thatdecision- nomic Opportunity should remain in the Execu- making authority on individual Federal proj- tive Office, where the general coordination and ects be decentralized to the field offices insofar planning authority of the government is focused as practicable, and that devices forinteragency and where it will be a major part of the consolidated planning function outlined in recommenda- coordination be established at the regional tion 10. Those programs which it now operates level. directly, and which are found to be successful will, The locations for regional offices should be cities . at the appropriate time, need to be transferred to with good transportation linkss. to theirregions: permanent locations in operating agencies to insure their continuation and to giveOEO an and with full arrays of private and public services. opportunity to try further innovation& 0E0 Growth-center citiesmight be selectedinorder to should make the decision on when a program promote their development as rural servicebase& should be transferred, subject only to appeal to the With offices of all' agencies in the same cities, Fed- President. eral executive boards, made up of agency regional The older agencies, however, have generally not directors, could be used effectively. The States and experimented with fresh approaches to the prob- area development districtswithin the regions lems of poverty, though they give evidence of should also be represented, possibly by one man being increasinglyreceptive. OEO programs for the States and one for the area development should. not be transferred until the agencies are district& Whatever the formula, the objective prepared to administer them according to the should be coordination at the levels of government spirit and objectives of the: Econoniic Opportunity and reflection of the State and area viewpoints. Act. Each region should have a field office of the In addition, the Commission wishes to encour- President's intergovernmental relations staff. The age the Office of Economic Opportunity to work head of it should chair the Board; his staff should within the pattern and spirit of Federal, State, be the secretariat, Coordinated action planning and local relationships recommended throughout this report sand to cooperate with and work and technical assistance to States and localities on Government coop- through State and local levels of government inso- programs in which the Federal far as they are responsive to OEO objectives. erated should be prime functions of the combined regional organization. It should also promote and The Comnisition recommenda- assist in the organizing of interstate area develop- 12. That a staff and council for intergovern- ment districts where they arenecessary. Regional mental relations and reorganization action be or local field officeswhich have-the power to turn created within the Executive Office of the down projectsshould also havethe powerto President. approve them. quired to provide at least partial matching funds and to demonstrate their a,dministrative compe- 14. That the present system of categorical tence. grants-in-aid and loans be reorganized by con Program guidelines should give maximum solidating similar categories and standardizing flexibility in design to fit State and local needs, eligibility and planning requirements. but control should be maintained to keep the States within the framework of national standards A community or State wishing to use several grant programs to solve a problem has to make of administration and of policy such as civil rights laws. States should agree to the regulations before many separate applications, even if they are re- assuming administration of the programs, so that lated in function, such as education and training. there is no room for misunderstanding. The Fed- Some require a comprehensive plan as a prereq- eral Government should monitor State compliance, uisite, some require a project plan. A. joint sewage and it shouldr not hesitate to bypass States that treatment plant and water system project would will not adequately accept and administer Federal require dealing with two different sewer and two program& The latter provision shouldhelp pro- different water agencies/ which would apply differ-. ent standards and take different lengths of time vide incentive for good State performance. to approve or disapprove their parts. The consolidated grant-loan system should be flexible so that recipients can tailor it to, their 16. That Federal agencies give States and requirements, though there must be adequate area development districts notice ofFederal accounting safeguards. aid applications and proposed direct Federal operations and solicit comments from the ap- The Commission recommends-- propriate States through the Governors and 15 That the Federal Government administer from the area development districts through applicable programs, especially grant-in-aid their executives. programs, 'through the States subject to their Included should be direct Federal program op- sharing the costs, adequate administration, and erations (of which the States could be advised an- their prior agreement to regulations enforcing nually), direct Federal public works projects, and basic national policy and standards of adminis. tration. Where the States will not accept the grants to local governments and private institu- responsibility and discharge it properly, the tions for planning, operations, and public works. Federal Government should bypass them and It is important that the comments come through the Governor, who is the State's chief coordinator, administer directly, until such time as the and, similarly, through the coordinators of the States meet the conditions. area development districts. The alternatives are : through 0) Federal field Grants and loans will be most effective if they offices, which, because there are 4(X) for grant4n- fit the overall development plans of the area de- aid administration,12 and several thousand if all velopment districts, and requests for comments of the county offices of the Department of Agricul- from the appropriate Governors and district offi- ture are included, have greater coordination diffi- cials should be a routine requirement before deci- culties than the States; also, their, directors lack sions are made on projects at the. Federal level. the powers of Governors; or (2) direct Federal-to- Comments, both positive and, negative, should be local level adininistration, which rules out needed carefully considered, but negative comments, or State coordination, especially of rural-urban area failure to comment, should not constitute a veto. development program& States are an integral part of our system of A Special Governmental Problem: government, and they can contribute much to the Reservation Indians welfare of the people because of their potential for Earlier in this chapter there was reference to action and coordination. If they want to adminis- local responsibility. The development of local re- ter area programs, however, they should be responsibility is a particularly urgent need among p. 2. Indian tribes living on reservations. They' can only develop responsibility by exercising it. But first the and the appropriate governmental agencies. Such Federal Government has to give them the oppor- determination can only take place rationally and tunity. be considered. on its merits when termination is Indian tribes should have the opportunity to disavowed by Congress. Then and only then can operate programs or provide services currently the Indian tribes objectively weigh the advantages provided by Federal and State agencies, subject and disadvantages of each organizational option always, however, to Indian initiation and consent and arrive at a decision which would reflect their to the transfer of such programs. There is no ques- best judgment. tion that Indians should have a greater voice in the planning and administration of programs which The Commission therefore recommends- affect them. They should also have a voice in decid- 17. That upon request by Indian tribes, Fed- ing which programs or services they wish to op- eral agencies should delegate to the tribes the erate, when they wish to assume the responsibility, authority,responsibility,andappropriate and to what extent. funds to carry out such specific functions as Termination of programs or services to Indian education and road construction and mainte- tribes, including termination of tribes themselves nance. Furthermore, the Federal Government as legal entities, has become aburning issue that should disavow termination as a unilateral pervades and, to a considerable extent, poisons action and should share with the tribes the de- every aspect of Indian affairs today.The avowed termination of changes in the organizational purpose of the termination campaign was tohelp structure and the location within the Govern- Indians "to become like other citizens," 'Unfor- ment of the Bureau of Indian Affairs. tunately, history has clearly shown such was not the result. Rather we find that among those tribes A Request to the Nation's Governments terminated during the 1950's great hardship resulted on the Indian people and on the State The Commissionreeonmends-- through placing additional fiscal responsibilities on the already overburdenedState and local gov- 18. That the local, State, and Federal govern- ernments. ments study and determine the means by which The effect of termination as a psychological bar- they can cooperate and assist in carrying out rier to Indian socioeconomic development has been the policies recommended by this Commission. great. Indeed, the very word termination has become so emotionally charged that itis now a battle This report is designed to recognize and meet cry which automatically generatesreflexive and the problems facing rural people, especially the defensive action on the part of Indian tribes. The rural poor, in the United States. The Commission rational consideration of virutally any new pro- believes it has outlined a workable, effective ap- position is consequently made most difficult. proach in which governmental assistance figures The recent proposals concerning the transfer of prominently. the Bureau of Indian Affairs from the Depart- The Commission wishes to call special attention ment of the Interior to the Department of Health, to the fact that it feels that State and local gov- Education, and Welfare is a case in point. With- ernments are important in a good system of admin- out any disavowal of termination on the part of istration and that many of its recommendations the legislative or executive branches of government, the Indian tribes predictably rejected the are directed toward improving the quality of those proposed move as being a step toward termination. governments. The Commission suggests that State While the Commission recognizes that the De- and local planning programs conducted with Fed- partment of the Interior is principally natural- eral grants be encouraged to study the means by resource oriented and that the present needsof which the recommendations in this report can be Indian people may better be met through human carried out, so that State and local levels may have resource development, it believes that thequestion a strong voice in designing effectiveactions and so of the functions and administrative location of the that the Federal Government can have specific Bureau of Indian Affairs can best be determined suggestions from them in working out its by joint consideration of the Indian people affected programs.

159 The Commission issues a challenge to all levels Hopefully, all will assist by considering therec- of government to help in opening full opportunity ommendations thoughtfully and by testing them. to rural American& It has pointed to urgently Above all, the Commission exhorts every govern- needed actions and organizations, Many of the de- ment to act, for the rural poor should not have to tails can-be filled in only by those who must act. wait longer for help.

160 U.S. GOVERNMENT PRINTING OFFICE:I967