American Federalism: Toward a More Effective Partnership American Toward Federalism: a More Effective Partnership A Report of, and Papers From The National Conference of American Federalism in Action Washington, D.C. February 20-22, 1975 The Advisory Commission on Intergovernmental Relations Washington, D.C. 20575 ref ace Acknowledgements iii In early 1975, the Advisory Commis- ACIR is grateful to all those who sion on Intergovernmental Relations participated in the program of the held its first national conference on National Conference on American American federalism. Although the Federalism in Action by preparing bicentennial has attracted public papers or by serving as session chair- attention to the historical aspects of men and speakers or discussants or federalism, our primary concern was by being active, thoughtful, vocal to the system as it is operating at delegates. ACIR also extends special this crucial point in history when the thanks to the public interest group sometimes overpowering problems of representatives and others who the economy, environment, and served on the conference planning energy affect all levels of committee. We are indebted to the government. National Science Foundation for Our conference did not come up with funding certain conference ex- easy solutions or provide any final penditures. conclusions. But conference speakers William R. MacDougall, former and delegates did identify a set of executive director of ACIR. and central challenges, provided a forum Jo Anne limenez, his administrative for discussion of the major problems assistant, carried the primary respon- and proposed some important sibility for organizing the confer- alternatives for action. ence. The manv, exvressions. from This volume is intended to share the participants saying that the confer- conference findings and discussions ence was an outstanding success are with those interested in the workings tributes to their efforts. F. John and future of American federalism. Shannon, David B. Walker, and Lawrence D. Gilson, of the ACIR staff, also played major roles in Robert E. Merriam planning the conference program. Chairman Furthermore every member of the ACIR staff had assignments prior to and during the conference itself. This volume was edited by Carol S. Weissert, who also wrote the over- view. The manuscript was typed by Marinda T. Davis; Franklin A. Steinko was responsible for the printing of the report. Lawrence D. Gilson, director of policy implemen- tation, supervised preparation of this report. Wayne F. Anderson Executive Director Table of Contents Section One. Conference Overview Section Two. Papers American Federalism: A Paradox of Promise and Performance by Robert E. Merriam 2 1 Functions in Flux by Alan K. Campbell 33 State Modernization Today by Daniel 1. Evans 4 0 Local Government Modernization by Richard G. Lugar 4 4 County Modernization in the U.S. by Conrad M. Fowler 5 0 Revenue Sharing: Renewal Time Approaches by Edmund S. Muskie 5 4 The New Mix of Federal Assistance: Categorical Grants, Block Grants, and General Revenue Sharing by Elmer B. Staats 5 7 Federal Assistance: Its Current Impact and Future Development by Daniel J. Elazar 6 4 Coming Issues in Public Control Versus Property Rights by Ralph R. Widner 68 We Took Our Eye Off the Ball by Harlan Cleveland 80 The Future of Federalism by Daniel P. Moynihan 86 Section Three. The Program 103 Section Four. Conference Participants 107 Section Five. The Advisory Commission on Intergovernmental Relations Description 118 Present Commission Members 119 Former Commission Members 12 0 Staff 122 Section One An Overview Federalism is a process without Evidence from the conference indi- required form or practice - a process cates that the federal system is stand- constantly in flux and under ing up to the current challenge. evolution. Reformed structure and function of Richard Leach, American Federalism, governments are evident in the grow- 1970. ing capability of regional instrumen- talities and cooperative arrangements The purpose of this volume is not to among governments to avoid over- define federalism or discuss its long lapping and assure more effective history or ~redictits coming glory or service to constituents. Governments demise. These have been done in at subnational levels are assuming some detail by others. It is our pur- more responsibility in providing for pose to look at federalism as it works individual needs of their cities and today - at a time when it is faced have compiled an impressive record with the convergence of several of innovative, responsible legisla- massive problems, resulting from a tion, and related decisions. And the depressed economy, constricted fiscal system, although under the energy supply, and finite environ- massive strain of an uneasy national ment. These problems confront all economy, is in a period when the levels, involve all facets of federalism, present mix of Federal aid, including and cannot be solved by actions of general revenue sharing and block any one government acting alone. grants, is helping state and local governments weather the economic In light of the magnitude of these storm. And although cooperation problems and with the realization among governmental levels is still far that there are no easy answers, the from ideal, recent experience has Advisory Commission on Inter- evidenced increased awareness of the governmental Relations convened its need for and more experimentation Frank Bane, former chairman of ACIR and first National Conference on Ameri- toward achieving a more effective former executive director of the Council of can Federalism in Action. The con- Federal-state-local partnership. State Governments. ference speakers and delegates iden- tified a central set of challenges and Frank Bane, first chairman of the provided a forum for discussion of Advisory Commission on Inter- the problems facing the federal sys- governmental Relations and former tem. They looked at the present and executive director of the Council of the past and suggested options for State Governments, describes it from the future. The result was some another angle: "With a federal sys- answers, many alternatives - and a tem we have diversity, without realistic look at federalism in action. diversity, there is no choice, without choice, there is no freedom." He con- tinued, "the great glory of the federal For as Professor Leach and others system is some damn fool at the top have stated, the federal system is one can't ruin it." constantly in flux and under evolu- tion. The history of the system is This section of the report is an marked with decades when decen- attempt to capture the thinking of tralization was highlighted and those that meeting as it evolved over the when centralization was the primary three days. Following this overview tendency; times when states were are texts of I1 speeches given during considered the ineffective partners the meeting, reprinted in their en- and years when localities were cir- tirety due to their particularly broad cumvented whenever possible. Yet application. with today's global and nationwide challenges, the nation can no longer afford to have any one of the part- ners weak - and none can solve the problems alone. may be on the brink The Promise and Performance the United States was less autocratic, of an era of creative innova- of Federalism and granted more freedom of expres- tion paralleled only by the Laying the groundwork for the con- sion, of the press in particular, than Progressive era earlier in this ference, ACIR Chairman Robert E. any other great nation, and certainly Merriam suggested a series of tests his own France; that this nation had the economic wealth to accommodate to be used in evaluating the per- a highly pluralistic society of free century.99 formance of the federal system. choice for individuals and various While providing his own tentative subcultures; that its federal govern- conclusions, Mr. Merriam chal- ment structure was flexible enough lenged the conference participants to to accommodate dynamic new social test the system against their own forces and sound enough to guaran- experience and perceptions. The tee sufficient stability in the process tests, with the essence of Mr. of rapid change. Mr. Merriam says Merriam's comments, follow. that even though political parties Does Federalism Protect and may not be adequately fulfilling their Encourage Democracy and Freedom? consensus forming responsibilities, he believes democracy and freedom Encouraged by the recent election of have been fostered by federalism, those people in our society too often particularly "where levels of educa- left out of the electoral process, Mr. tion and of citizen sophistication are Merriam's answer is yes. For, al- high enough and in a time when though the number of persons such institutions as legalized segre- voting in 1974 was the lowest in the gation and rotten borough appor- last 20 years, those who did vote tionment have been swept aside." "registered some remarkable deci- sions in opening up the system by Does Federalism Result in electing representatives of groups Government Innovation? historically underrepresented in our system." Blacks, women, and The answer is a clear cut yes, accord- Hispanics were elected to high offices ing to Mr. Merriam, who feels that at the national, state, and local levels, we "mav be on the brink of an era and advocates of consumerism, of creative innovation paralleled only strong environmentalists, and open by the Progressive era earlier in