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    "localId": "1133489",
    "label": "10/19/76 - California League of Cities",
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    "id": "1133489",
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    "contentType": "document",
    "title": "10/19/76 - California League of Cities",
    "description": "This file contains material relating to Community Development Block Grant Programs, Committee on Urban Development and Neighborhood Revitialization.",
    "citationUrl": "https://catalog.archives.gov/id/1133489",
    "collections": [
        "Carla A. Hills Speeches",
        "Speeches"
    ],
    "subjects": [
        "Bureaucracy",
        "Economics",
        "Fiscal policy",
        "Government regulation",
        "Independent regulatory commissions",
        "Intergovernmental relations",
        "Local government",
        "Revenue sharing",
        "Urban policy"
    ],
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        "logicalDate": "1976-10-19",
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    "seq": 1,
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    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/ford/grf-0305/656148/1133489.pdf",
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    "ocrText": "The original documents are located in Box 2, folder \"10/19/76 - California League of\nCities\" of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library\n84\nFINAL\nCALIFORNIA LEAGUE OF CITIES\nOCTOBER 19, 1976\nI AM so PLEASED TO RETURN HOME TO CALIFORNIA. THANK\nYOU FOR THIS OPPORTUNITY TO APPEAR BEFORE YOU TODAY,\nIN THE FIVE DECADES SINCE THE BIRTH OF THE LEAGUE IDEA,\nOUR CITIES HAVE MULTIPLIED IN THE WAKE OF UNPRECEDENTED\nTECHNICAL EXPANSION AND POPULATION EXPLOSION.\nTHE URBAN ILLS WHICH BECAME INCREASINGLY EVIDENT AS\nTHE INDUSTRIAL REVOLUTION PASSED INTO THE 20TH CENTURY\nWERE POPULARLY REFERRED TO AS \"THE FAILURE OF OUR CITIES\"\nBY COUNTRY DWELLERS,\nBUT, WHERE OUR FIRST \"FAILURE\" WAS THE INABILITY OF\nA RURAL NATION TO RECOGNIZE THE PORTENT OF THE URBAN\nCONDITION, THE SECOND \"FAILURE\" CAME IN THE DECADE OF\nTHE 1960's.\nFOR, IN OUR RUSH TO APPLY MASSIVE FEDERAL REMEDIES\nTO URBAN SORES THAT HAD BEEN FESTERING FOR DECADES, WE\nNOT ONLY WORSENED THE CONDITIONS IN OUR INNER CITIES --\nWE SUCCEEDED IN STRIPPING OUR CITIES OF THE ECONOMIC BASE\nNEEDED TO KEEP THE DISEASE FROM SPREADING.\nGERALD & FORD\n-2-\nI WOULD LIKE TO TALK TO YOU, TODAY, OF THE CHANGING\nNATURE OF INTERGOVERNMENTAL RELATIONS AND PARTICULARLY\nOF THE FEDERAL ROLE IN ASSISTING OUR CITIES,\nOURS, WE ARE OFTEN REMINDED, IS A THREE-TIERED SYSTEM\nOF GOVERNMENT.\nBUT, WE CANNOT DISCUSS THE CHANGING RELATIONSHIPS\nAMONG THE THREE TIERS -- FEDERAL, STATE AND LOCAL --\nWITHOUT CONSIDERING, FIRST, THE CHANGING NATURE OF OUR\nNATIONAL ECONOMY, FOR, IN THE FINAL ANALYSIS IT IS THE\nSTATE OF OUR ECONOMY THAT DICTATES HOW THAT RELATIONSHIP\nWILL WORK.\nPROFESSOR HAROLD HILL SAID IN \"THE MUSIC MAN\":\n\"WE'VE GOT A GREAT BAND! SWELL UNIFORMS!\nNow, IF WE COULD ONLY AFFORD INSTRUMENTS,\nWE COULD TEACH THE BAND HOW TO PLAY.\nTHUS THE PRIMARY REQUISITE IS A STABLE, GROWING NATIONAL\nECONOMY, SUPPORTED BY COMMERCIAL EXPANSION AND PRODUCTIVE\nEMPLOYMENT -- so WE CAN AFFORD THE INSTRUMENTS OF INTER-\nGOVERNMENTAL PRODUCTIVITY.\n-3-\nFOR, AS ANY STUDENT OF THE URBAN CONDITION KNOWS, THE\nECONOMIC ILLS THAT BESET A NATION STRIKE FIRST AND HARDEST\nIN THE POOREST CENTERS OF OUR CITIES. AND THOSE CENTERS\nARE THE LAST TO FEEL ANY VISTAGES OF NATIONAL ECONOMIC UPTURN.\nSo, LET US BEGIN, THEN, BY TAKING STOCK, WHERE WERE\nWE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT? WHAT HAVE WE\nLEARNED? WHERE CAN WE GO?\nNONE OF US CAN FORGET THAT IN 1975, THE MAJOR QUESTION-\nMARK WAS WHETHER OUR NATIONAL ECONOMY WOULD SUSTAIN THE\nFORWARD MOMENTUM WHICH WAS THEN ON THE CUSP OF A POSITIVE\nTURN-AROUND -- FROM THE BLEAK AND DEPRESSING 12-MONTH PERIOD\nOF A TERRIFYING RECESSION COMPOUNDED BY UNCEASING INFLATION.\nINFLATION STOOD AT 12 TO 14 PERCENT, THE UNEMPLOYMENT\nRATE WAS ABOUT 9 PERCENT,\nURBAN REVENUES WERE WAY DOWN. NEW YORK WAS ON THE BRINK\nOF FINANCIAL FAILURE, INDUSTRY WAS DEPRESSED AND THE HOUSING\nSECTOR WAS SUFFERING ITS WORST YEAR IN THREE DECADES.\n-4-\nON CAPITOL HILL, POLITICAL LEADERS, LIKE YOUR SPEAKER\nTHIS MORNING, WERE PROPHESIZING A NATIONAL COLLAPSE UNLESS\nWE ENGAGED IN MASSIVE FEDERAL SPENDING -- IN THE FORM OF\nSUBSIDIES -- PARTICULARLY IN THE HOUSING INDUSTRY.\nA PARADE OF POORLY CONCEIVED SPENDING BILLS WERE LITERALLY\nTUMBLING OUT OF THE LEGISLATIVE BRANCH TO FUEL OUR DOUBLE-DIGIT\nINFLATION.\nNOTWITHSTANDING WE STOOD IN AN ELECTION CYCLE, OUR\nPRESIDENT HAD THE COURAGE TO PROTECT THIS NATION AGAINST THE\nRAVAGES OF FURTHER INFLATION,\nSENATOR MONDALE MENTIONED TO YOU THIS MORNING THE VETO\nOF THE HOUSING AcT OF 1975 -- AN ILL-CONCEIVED, MULTI-BILLION\nDOLLAR MEASURE WHICH THE DEMOCRATIC CHAIRMAN OF THE HOUSE\nBANKING COMMITTEE CALLED \"A TURKEY THAT WOULDN'T FLY\".\nTHE SENATOR NEGLECTED TO MENTION THAT WITHIN THREE DAYS\nAFTER THAT VETO WE OBTAINED PASSAGE OF THE EMERGENCY HOUSING\nLEGISLATION WHICH HAS BEEN JUDICIOUSLY USED TO NURTURE THE\nHOUSING RECOVERY,\n-5-\nOUR FOUNDING FATHERS CONSTRUCTED OUR SYSTEM OF CHECKS\nAND BALANCES FOR VERY GOOD REASON -- AND NEVER BETTER\nDEMONSTRATED THAN DURING 1975. AND THE PROOF IS IN THE\nRECORD.\nHERE WE ARE -- ONE YEAR LATER.\nTHE NATION AND ITS ECONOMY SURVIVED -- AND THE DELICATE\nHEALTH OF THE ECONOMIC UPTURN, WHICH WE WATCHED so FRETFULLY\nA YEAR AGO, HAS BECOME STRONGER AND STRONGER WITH EACH PASSING\nMONTH.\nIN ONE SHORT YEAR WE HAVE SEEN:\nPERSONAL INCOME JUMP $83 BILLION; -- OUR GROSS NATIONAL\nPRODUCT GROW BY $200 BILLION; -- RETAIL SALES INCREASE 16\nPERCENT -- AUTO SALES 38 PERCENT; -- GENERAL MERCHANDISE\n11 PERCENT; -- NEW FACTORY ORDERS UP $17 BILLION,\nTODAY, THERE ARE THREE MILLION MORE AMERICANS WORKING\nTHAN ONE YEAR AGO -- IN SPITE OF A TREMENDOUS INFLUX OF\nWOMEN AND YOUNG PEOPLE INTO THE LABOR MARKET. AND INFLATION\nHAS BEEN MORE THAN CUT IN HALF.\n-6-\nIN HOUSING -- PERHAPS THE HARDEST HIT SECTOR OF OUR\nENTIRE ECONOMY -- NEW STARTS ARE UP 40 PERCENT OVER LAST\nSEPTEMBER, AND 93 PERCENT OVER THE BEGINNING OF 1975.\nWHAT HAVE WE LEARNED?\nWE HAVE COME THIS FAR, NOT THROUGH THE MAGIC OF A\nBIG FEDERAL GOVERNMENT \"SAVE\", BUT THROUGH THE STRONG AND\nCONSISTENT GUIDING HAND OF A PRAGMATIC PRESIDENT.\nAND OUR PROSPECTS FOR CONTINUED GROWTH AND PROGRESS\nDEPEND ON MAINTAINING THE STEADY COURSE PRESIDENT FORD SET\nWHEN HE TOOK OFFICE TWO YEARS AGO,\nWHAT WORRIES ME ARE THE REPEATED CALLS FOR MORE\nGOVERNMENT SPENDING PROGRAMS,\nI HAVE LISTENED TO OUR OPPOSITION'S PROPOSALS THAT\nWOULD ADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY\nPRODUCING A DEFICIT OF OVER $50 BILLION, BUT I HAVE NOT\nHEARD HOW WE ARE TO PAY FOR THEM.\nWE WILL EITHER HAVE HUGE DEFICITS OR WE WILL HAVE\nHIGHER TAXES, THERE ARE NO SECRET SOURCES OF REVENUES.\n-7-\nTHEY TELL US THEY WILL BALANCE THE BUDGET,\nTHEY TELL US THEY WILL FIND THE MONEY BY RAISING THE\nTAXES OF THE UNDESERVING RICH. SOME CONFUSION EXISTS\nWHETHER THE RICH ARE THOSE WITH INCOMES ABOVE THE MEDIAN\n($14,000), THOSE ABOVE $25,000, OR THOSE ABOVE $50,000\nWILL BE THE TARGET.\nBUT ONLY 10 PERCENT OF FAMILIES MAKE $25,000 OR MORE\nAND A FULL 40 PERCENT OF THEM DO IT WITH TWO WAGE EARNERS.\nIF WE FOCUS ON $50,000 INCOMES -- THEN WE MUST BE\nAWARE THAT FEWER THAN 5 PERCENT OF AMERICAN FAMILIES MAKE\n$50,000 PLUS,\nIF WE DOUBLE THEIR TAX, WE COULD PICK UP ABOUT $20\nBILLION.\nTHEY SAY THEY WOULD CLOSE LOOPHOLES, $65 BILLION IN\nPREFERENCES GO TO ALL TAXPAYERS, $53 BILLION GO TO PERSONS\nWITH INCOMES BELOW $25,000. IF WE CLOSE ALL LOOPHOLES FOR\nPERSONS MAKING $25,000 PLUS, WE COULD PICK UP $12 BILLION,\n-8-\nALL OF THIS FALLS CONSIDERABLY SHORT OF THE $200\nBILLION WORTH OF NEW PROGRAMS WHICH ARE OFFERED AS CURES\nTO OUR NATION'S ILLS.\nTHIS SHOTGUN ANALYSIS REMINDS ME OF H.L. MENCKEN'S\nCOMMENT:\nFOR EVERY HUMAN PROBLEM THERE IS A\nSOLUTION THAT IS SIMPLE, NEAT AND WRONG.\nDON'T BE MISLED.\nTHE UNVARNISHED EVIDENCE IS THAT THESE BIG SPENDING\nPROGRAMS THWART NEEDED BUSINESS EXPANSION BY DRIVING UP\nCOSTS OF DOING BUSINESS,\nTHAT HURTS THE VERY PEOPLE SUCH PROGRAMS WERE SUPPOSED\nTO HELP -- WITH GREATER EXPENSES, EMPLOYMENT CONTRACTION,\nLAY-OFFS AND STILL ANOTHER ROUND OF UNEMPLOYMENT CHECKS\n-- NOT TO MENTION OUR CITIES,\n-9-\nIT WORRIES ME THAT WE HEAR OUR OPPOSITION IN THIS\nCAMPAIGN CALLING FOR THE FEDERAL GOVERNMENT TO SUBSIDIZE\nTHE BUILDING OF 2.5 MILLION HOUSING UNITS A YEAR, WE\nHAVE ALREADY BEEN DOWN THAT ROAD -- DISASTEROUSLY. AND\nYOU WHO ARE LEADERS OF THE CITY SHOULD LISTEN CAREFULLY,\nFOR PURSUANT TO THE HOUSING AcT OF 1968 THAT SENATOR\nMONDALE POINTS TO WITH PRIDE, THIS NATION SUBSIDIZED,\nANNUALLY, WITHOUT REGARD TO THE MARKET NEEDS OF PARTICULAR\nAREAS, MORE THAN 2 MILLION HOUSING STARTS FOR THREE YEARS\nRUNNING -- AND GENERATED A BURST OF HOUSING OVERPRODUCTION\nTHAT WE ARE STILL TRYING TO WORK OFF,\nIN THE COURSE OF THIS PRODUCTION EXPLOSION OUR NATION\nABANDONED THOUSANDS OF SOUND, WELL-DESIGNED HOMES IN OUR\nCITIES AND UNDER-UTILIZED ROADS, UTILITIES, AND SEWAGE SYSTEMS\nALREADY IN PLACE THERE, AS URBAN DWELLERS HEEDED THE PIED\nPIPER CALL OF \"NEW IS BETTER\" AND FLED, NEIGHBORHOODS WERE\nBLIGHTED WITH ROW UPON ROW OF BOARDED-UP HOUSES LEFT TO DECAY.\n-10-\nBUT IT WAS NOT ONLY OUR CITIES THAT SUFFERED -- OUR\nHOUSING INDUSTRY -- MANAGEMENT AND LABOR -- WAS INCAPACITATED.\nBECAUSE AN ARTIFICIALLY PRODUCED \"BOOM\" CANNOT CONTINUE\nFOREVER, THE NEXT PERIOD, WHICH HIT us ABOUT TWO YEARS AGO,\nWAS ONE OF EXAGGERATED CONTRACTION TO ENABLE US TO WORK-OFF\nTHE EXCESSIVE INVENTORIES, WITH DISASTEROUSLY HIGH LAY-OFFS\nIN THE CONSTRUCTION INDUSTRY.\nPRESIDENT FORD'S HOUSING POLICIES ARE DESIGNED TO\nACCOMMODATE THE LOGICAL CALL FOR REASONABLE LEVELS OF STARTS\nWHILE AVOIDING THE DISASTEROUS CYCLES OF ALL OR NOTHING THAT\nHAVE CHARACTERIZED THE HOUSING CONSTRUCTION INDUSTRY EVER\nSINCE BIG GOVERNMENT GOT INTO THE ACT.\nAND THESE HOUSING POLICIES HAVE WORKED. EVEN IF WE\nFAIL TO BUILD ANOTHER HOUSE IN 1976, THIS YEAR -- RIGHT NOW\n-- WILL BE THE FOURTH BEST YEAR ON RECORD FOR NEW SINGLE-\nFAMILY STARTS -- CURRENTLY AT 1.3 MILLION. AND MULTI-FAMILY\nSTARTS, ALTHOUGH NOT so QUICK TO RECOVER, JUMPED 48 PERCENT\nIN JULY AND 46 PERCENT IN AUGUST WITH EXCITING JUMPS IN\nPERMITS so THAT WE HAVE EVERY REASON TO BE CONFIDENT OF THEIR\nCONTINUED GAIN,\n-11-\nTHE DECIDING FACTOR IN ANY POLICY DECISION, AT ANY LEVEL\nOF GOVERNMENT, IS NOT HOW COMPASSIONATE OR SENSITIVE IT IS\nSAID TO BE, BUT HOW WELL IT WILL IN FACT WORK.\nSINCE THE START OF HIS ADMINISTRATION TWO YEARS AGO,\nPRESIDENT FORD HAS TAKEN STEPS TO IMPROVE THE WORKINGS OF\nGOVERNMENT BY IMPROVING THE FOCUS AND DELIVERY OF FEDERAL\nASSISTANCE TO OUR STATES AND URBAN CENTERS,\nHE HAS DIRECTLY ATTACKED THE DELAYS, THE RED-TAPE, AND\nTHE REGULATION MAZE so DISHEARTENING TO THE INNOVATIVE SPIRIT\nTHAT IS THE SOUL OF THE FREE ENTERPRISE SYSTEM. AND HE HAS\nDONE IT IN TWO SHORT YEARS, ASSEMBLING HIS WINNING TEAM AT\nTHE LOWEST POINT IN THE POLITICAL HISTORY OF OUR COUNTRY,\nINDEED, HE HAS SET THE TONE FOR A NEW NATIONAL AWARENESS\nTHAT AMERICA'S WISDOM DOES NOT RESIDE ENTIRELY IN THE CORRIDORS\nOF CONGRESS -- THAT OUR STATES AND OUR CITIES ACROSS OUR\nDIVERSE LAND VERY OFTEN CAN DEVISE BETTER SOLUTIONS FOR THEIR\nINDIVIDUAL PROBLEMS THAN CAN CONGRESS WHICH DEALS IN NATIONAL\nSTATISTICS AND DEVISES GRAND SOLUTIONS THAT TOO FREQUENTLY\nMISS THE MARK,\n-12-\nON JUNE 30TH, THE PRESIDENT APPOINTED A CABINET-LEVEL\nCOMMITTEE ON URBAN DEVELOPMENT AND NEIGHBORHOOD REVITALIZATION,\nWHICH I CHAIR, TO UNDERTAKE A COMPREHENSIVE REVIEW OF ALL\nFEDERAL PROGRAMS WHICH AFFECT OUR URBAN AREAS; TO CONSULT\nWITH LOCAL OFFICIALS AND COMMUNITY GROUPS REGARDING HOW\nFEDERAL PROGRAMS IMPACT ON COMMUNITIES, AND TO PROPOSE TO\nHIM STATUTORY AND ADMINISTRATIVE CHANGES FOR IMPROVEMENT.\nOUR INITIAL STUDY OF THE AMASSED DATA QUICKLY CONFIRMED\nWHAT WE ALREADY SUSPECTED.\nOVER THE PAST HALF-CENTURY, SUCCEEDING CONGRESSSES HAVE\nENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES\nTHE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY\nFOR A SAN DIEGO, A TOLEDO, A SAN JOSE, OR A COLUMBUS,\nTHOSE WHO TALK ABOUT \"MANAGING THE BUREAUCRACY\" OR\n\"BRINGING WASHINGTON UNDER CONTROL\" HAD BEST START WITH\nTHAT FACT-OF-LIFE IN MIND.\n-13-\nI HAVE PERSONALLY REVIEWED 103 FEDERALLY-FUNDED PROGRAMS\nWHICH PRIMARILY AFFECT LOCAL COMMUNITIES AND WHICH CARRY A\nPRICE TAG OF ROUGHLY $50 BILLION A YEAR, SIXTY-THREE OF\nTHESE ARE GRANT PROGRAMS -- OF WHICH ONLY 4 ARE BLOCK GRANTS\nAND 59 ARE CATEGORICALS. THE REMAINING 40 ARE MISCELLANEOUS\nLOAN PROGRAMS,\nSIGNIFICANTLY, LOCAL GOVERNMENTS ARE ELIGIBLE, DIRECT\nAPPLICANTS IN BARELY ONE-FOURTH OF ALL THESE PROGRAMS,\nALL OTHER PROGRAM FUNDS ARE DISTRIBUTED TO THE STATES\nOR TO SPECIAL-PURPOSE LOCAL AGENCIES,\nVIRTUALLY ALL THE 59 CATEGORICAL PROGRAMS HAVE EXTENSIVE\n-- OFTEN OVERLAPPING -- MANDATORY APPLICATION REQUIREMENTS,\nWITH FEW LIMITS ON REVIEW TIME AND NO ASSURANCE OF APPROVAL\nAT THE LONG END OF THE FINAL LINE,\nI DO NOT WISH TO FLATTER THIS AUDIENCE BY POINTING TO\nTHE SUPERIORITY OF LOCAL LEADERSHIP OVER WASHINGTON PLANNERS\n-- BUT I BELIEVE A BRIEF RECAP OF THE HUD EXPERIENCE ILLUSTRATES\nTHE ADVANTAGE TO THE CITY, TO THE STATE, TO THE FEDERAL\nGOVERNMENT, AND, NOT LEAST OF ALL, TO THE TAXPAYERS, OF GIVING\nBROAD DISCRETION WITH FEDERAL FUNDING.\n-14-\nBEFORE PRESIDENT FORD SIGNED THE NEW HOUSING AND\nCOMMUNITY DEVELOPMENT AcT INTO LAW ON AUGUST 22, 1974, HUD\nHAD 7 CATEGORICAL GRANT PROGRAMS THAT ARE NOW CONSOLIDATED\nUNDER OUR BLOCK GRANT PROGRAM -- EACH HAD ITS OWN SET OF\nREQUIREMENTS, REGULATIONS, AND TIMETABLES, WATER AND SEWERS;\nURBAN RENEWAL; OPEN SPACE FOR PARK DEVELOPMENT -- ALL OF\nTHEM WELL-MEANING BUT WITHOUT ANY ALLOWANCE FOR GREATER\nCOMMUNITY NEEDS THAT MIGHT LIE OUTSIDE OF THE STRICT\nSPECIFICATIONS OF THE PARTICULAR CATEGORIES,\nTo MAKE SENSE OUT OF THIS ABSURDITY, THIS ADMINISTRATION\nDEVELOPED THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.\nUNDER THE PROGRAM, LARGE CITIES AND URBAN COUNTIES RECEIVE\nUNFETTERED FUNDS WHICH THEY SPEND, FOR THEIR LOCALITIES'\nMOST URGENT COMMUNITY DEVELOPMENT NEEDS,\nREGULATIONS HAVE BEEN CUT FROM 2600 PAGES TO ABOUT 100\nPAGES; APPLICATIONS FROM 1400 PAGES TO ABOUT 50 PAGES; AND\nREVIEW TIME FROM AN AVERAGE OF 26 MONTHS TO AN AVERAGE OF\n45 DAYS, As COMPARED TO 1967, WE ARE NOW PROVIDING TWICE\nAS MUCH FUNDING TO TWICE AS MANY UNITS OF GOVERNMENT -- AND\nWE ARE DOING IT WITH FEWER HUD EMPLOYEES,\n-15-\nBUT, MOST IMPORTANT, WE ARE PROVIDING LOCAL COMMUNITIES\nWITH VITALLY NEEDED FUNDS -- ON TIME AND IN TIME.\nIT IS MY STRONG BELIEF THAT OUR CITIES CAN, AND WILL,\nMOVE FORWARD IF CONGRESS PERMITS THE FEDERAL ESTABLISHMENT\nTO SHIFT EMPHASIS FROM CATEGORICAL THINKING TO BLOCK GRANT\nPLANNING.\nTHEN FUNDING IS PUT BEYOND THE NARROW PERSPECTIVE OF\nSOME \"EXPERT\" IN WASHINGTON, WHO CANNOT POSSIBLY GRASP THE\nINDIVIDUAL DIFFERENCES OF THE THOUSANDS OF LOCALITIES ACROSS\nOUR 3-1/2 MILLION SQUARE MILES OF COUNTRY,\nTHE EVIDENCE, IN FACT, IS so STRONG -- THAT I STRONGLY\nRECOMMEND THAT A FORWARD-LOOKING APPROACH TO FEDERAL GRANT\nPROGRAMS SHOULD BUILD ON FOUR PRINCIPLES:\nFIRST, WE SHOULD PREFER BLOCK GRANTS TO CATEGORICALS\nFOR ALL THE REASONS I HAVE STATED HERE, TODAY -- PARTICULARLY\nIN GIVING LOCAL PEOPLE MORE CONTROL OVER THE RESOURCES THAT\nAFFECT THEIR LIVES,\nSECOND, FUNDING SHOULD BE PROVIDED THROUGH THE ELECTED\nCHIEF EXECUTIVE OFFICERS OF STATES AND LOCALITIES BOTH TO\nASSURE COORDINATION IN THE USE OF AVAILABLE FUNDS AND\nACCOUNTABILITY TO THE PEOPLE AFFECTED,\n-16-\nTHIRD, CITIZEN PARTICIPATION SHOULD BE A RULE RATHER\nTHAN AN EXCEPTION IN FEDERAL GRANT PROGRAMS, WHICH WILL\nINCREASE GOVERNMENTAL ACCOUNTABILITY, THE CORNERSTONE OF\nOUR DEMOCRACY,\nAND, FINALLY, THE FEASIBILITY OF MULTI-YEAR FUNDING\nALSO SHOULD BE CONSIDERED WHEREVER POSSIBLE, so THAT OUR\nCOMMUNITIES CAN INTELLIGENTLY PLAN INTO THE FUTURE AND,\nAT THE SAME TIME, TAKE ADVANTAGE OF TIMELY OPPORTUNITIES\nTO GET THE MOST EFFECTIVE RETURN ON THEIR AVAILABLE FUNDS.\nI BELIEVE THAT IF THESE FOUR PRINCIPLES BECAME THE\nGUIDING PRINCIPLES OF FUTURE FEDERAL PROGRAM PLANNING,\nYOUR CONSTITUENCIES WOULD FARE A LOT BETTER.\nTHEY ENHANCE THE SPECIAL CAPABILITIES OF EACH LEVEL OF\nGOVERNMENT AND MAKE EACH LEVEL MORE RESPONSIVE AND EFFICIENT.\nFOR, ALTHOUGH LOCAL GOVERNMENTS ARE THE BEST SITUATED\nTO SOLVE LOCAL PROBLEMS, THEY ARE THE LEAST CAPABLE OF\nGENERATING SIGNIFICANT AMOUNTS OF REVENUE, EIGHTY-FIVE\nPERCENT OF LOCAL REVENUES COME FROM PROPERTY TAXES, AND WE\nKNOW THAT OVER-TAXATION OF PROPERTY ONLY SERVES TO HALT\nLAND DEVELOPMENT, OR ENCOURAGE DISINVESTMENT.\n-17-\nAND, WHILE IT IS THE FEDERAL GOVERNMENT THAT HAS THE\nMOST EFFICIENT MEANS OF GENERATING REVENUES AND SETTING\nNATIONAL GOALS, IT IS THE STATE GOVERNMENT THAT BRINGS\nREGIONALISM TO GOVERNMENTAL DECISION-MAKING.\nIN PLANNING FOR THIS NATION'S URBAN FUTURE WE CANNOT\nIGNORE THE NEED TO INTEGRATE THE POLITICAL AND ECONOMIC\nDESTINIES OF OUR CITIES WITH THEIR SUBURBS, ONLY THE STATE\nCAN ACCOMPLISH THAT IMPORTANT FEAT OF POLITICAL-PHYSICAL\nCONSOLIDATION.\nTHE STATE LEGISLATURE OF MINNESOTA, FOR EXAMPLE, MADE\nPOSSIBLE THE MINNEAPOLIS-ST. PAUL METROPOLITAN COUNCIL,\nWHICH IS CHARGED WITH THE COORDINATION OF COMMUNITY AFFAIRS\nIN THE TWIN-CITY AREA.\nAND IT IS BY MINNESOTA STATE LAW, THAT THE PROPERTY TAX\nBENEFITS FROM NEW COMMERCE AND INDUSTRY IN THE METROPOLITAN\nAREA ARE DISTRIBUTED AMONG ALL THE COMMUNITIES IN THAT LOCALITY,\nWHERE WE HAVE ACHIEVED A REAL INTERGOVERNMENTAL PARTNERSHIP\n-- AS WE HAVE IN SOME AREAS BASED UPON THE SHEER INGENUITY OF\nPEOPLE AT EACH LEVEL -- WE HAVE SEEN EXCITING PROGRESS,\n-18-\nTHAT THE WIND OF CHANGE HAS BEGUN TO BLOW SINCE THE\nBLOCK GRANT APPROACH WAS EMPHASIZED IN 1974 WAS CLEARLY\nAPPARENT AS OUR PRESIDENT'S COMMITTEE TRAVELLED TO AND\nSTUDIED CITIES IN ALL REGIONS OF THE COUNTRY:\nENERGIZED DOWNTOWN AREAS SUPPORTED BY NEW CIVIC CENTERS\nAND RENOVATED LANDMARKS; CONVENTION CENTER COMPLEXES;\nRECLAMATION OF HARBORS AND RIVER BANKS; THE REBIRTH OF OLD\nFINANCIAL DISTRICTS; FLOURISHING, REHABILITATED NEIGHBORHOODS\n-- LOW AND MODERATE INCOME, MIDDLE-CLASS, ETHNIC, WEALTHY --\nEACH CONTRIBUTING TO THE ECONOMIC HEALTH AND CULTURAL\nDIVERSITY OF ITS CITY,\nTHESE TRIUMPHS OF NEIGHBORHOOD REVITALIZATION IN ALL\nPARTS OF THE COUNTRY -- COUPLED WITH DOWNTOWN REDEVELOPMENT\nMASTERPIECES -- HAVE IN COMMON ONE ESSENTIAL INGREDIENT OF\nSUCCESS:\nALL OF THEM HAVE COME ABOUT THROUGH LOCAL INITIATIVE,\nLOCAL PLANNING AND LOCAL INVESTMENT. IN EACH CASE, THE\nPRINCIPAL ROLE OF THE STATE AND THE FEDERAL GOVERNMENT HAS\nBEEN SUPPORTIVE, NOT PRE-EMPTIVE,\n-19-\nBUT THIS SORT OF INNOVATION WILL NOT CONTINUE IF WE\nHAVE A REOCCURRENCE OF DOUBLE-DIGIT INFLATION THAT CUT THE\nFLOW OF URBAN REVENUES.\nTHE ONLY SURE PRESCRIPTION FOR CREATIVE INTERGOVERNMENTAL\nWORKINGS IS THE CONTINUATION OF THE STEADY PROGRESS THAT\nPRESIDENT FORD HAS MADE IN REDUCING INFLATION AND INCREASING\nEMPLOYMENT.\nWE SIMPLY CANNOT IGNORE THE LESSON FOR WHICH WE PAID\nso DEARLY IN THE 1960's -- THAT NO MATTER HOW MUCH WE MAY\nWILL IT -- A \"SOCIETY\" IS NOT SUDDENLY MADE \"GREAT\" THROUGH\nWELL-MEANING PROGRAMS WHOSE SOLE SOURCE OF SUSTENANCE IS\nTHE FEDERAL EXCHEQUER.\nWE KNOW THAT OUR PRIVATE ECONOMY, WHICH SUPPORTS OUR\nCITIES, CANNOT SUSTAIN THE AWESOME FEDERAL DEFICIT OF TODAY'S\nMAGNITUDE WITHOUT THE EROSION OF THE VERY FINANCIAL RESOURCES\nTHAT ARE VITAL TO THE GROWTH AND PRODUCTIVITY OF OUR FREE\nENTERPRISES, WHICH ARE THE SOURCE OF FIVE OUT OF SIX JOBS --\nWHICH ARE IN TURN THE SOURCE OF OUR CITIES' SUSTENANCE.\nPRESIDENT FORD HAS HELD THE LINE IN EXPENDITURES, AND\nIN so DOING HAS CREATED THE LARGEST NUMBER OF JOBS IN OUR\nNATION'S HISTORY,\n-20-\nIF WE PERSERVERE IN THE OLD MYTH THAT OUR CITIES CAN\nBE RUN FROM WASHINGTON, WITH A NATIONAL PROGRAM FOR THIS\nPROBLEM AND A NATIONAL PROGRAM FOR THAT PROBLEM, ALL OF OUR\nCITIES, NOT JUST THE OLDER ONES, FACE A VERY BLEAK TOMORROW.\nAND \"INTERGOVERNMENTAL RELATIONS\" WILL BECOME JUST ANOTHER\nGOVERNMENT PROJECT THAT FAILED -- EXPENSIVELY.\nBUT, I SIMPLY TO NOT BELIEVE THE PEOPLE -- OR THE\nLEADERSHIP -- IN OUR CITIES ARE GOING TO ALLOW IT TO FAIL.\nAND THIS GREAT CONFERENCE OF THE CALIFORNIA LEAGUE,\nSURELY, IS AN ENTHUSIASTIC TESTIMONY TO MY CONFIDENCE.\nTHANK YOU,"
}