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4526466
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Optimist Club, Grand Rapids, MI, November 1, 1972
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4526466
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Optimist Club, Grand Rapids, MI, November 1, 1972
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Gerald R. Ford Congressional Papers
Speeches
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Revenue sharing
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1972-11-30
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11
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1972
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1972-11-01
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1972
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The original documents are located in Box D34, folder "Optimist Club, Grand Rapids, MI,
November 1, 1972" of the Ford Congressional Papers: Press Secretary and Speech File at
the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
MIffice Copy
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
FOR RELEASE AT 12 NOON WEDNESDAY, NOV. 1, 1972
Remarks by Rep. Gerald R. Ford before the Grand Rapids Optimist Club
Local taxpayers here and there throughout the country will get a break as
a result of Federal revenue sharing legislation passed by the 92nd Congress.
Many communities around the country plan to use the funds they will receive
under the new Federal revenue sharing program to reduce taxes property taxes in
most
instances.
This is a result I had fervently hoped for in connection with Federal revenue
sharing. Federal
income taxes have been cut but our taxpayers need local
tax relief badly. This has been true for years. It is one of the reasons I have
pushed for Federal revenue sharing legislation since 1965.
This, of course, is not the sole reason for Fedehal revenue sharing. The aim
also is to let local officials set
their own priorities, rather than
be dictated to by bureaucrats in Washington. The idea is to strengthen local
government.
Where
Federal revenue
sharing money is not used to reduce local taxes,
it will
be used for public facilities and services. The most commonly planned use
for the funds is capital improvements, mostly improved sewer and water facilities.
This, in turn, should generate jobs and give the
Nation's economy added impetus.
Federal revenue sharing funds also will be used in many communities
to aid
mass transit systems. And still other cities will use these funds for additional
recreational facilities and the purchase of parkland.
Federal revenue sharing will be a big shot in the arm for State and local
governments-more than $30 billion over a period of five years-and the injection
starts right now. Total allocation for 1972 is $5.3 billion.
Revenue sharing checks will go out to State and local governments the first week
in December under present plans. These checks will cover half of calendar year 1972.
Checks for the second half will go out the second week in January unless there's a
hitch.
Preliminary figures have been announced showing Grand Rapids as receiving just
under $2.7 million. However, this
allocation was based on 1967 tax data. The
LIBRARY
Treasury Department now is recomputing the Federal revenue sharing allocations wherever
Digitized from Box D34 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
-2-
possible, using 1971 tax data. My guess is that Grand Rapids will wind up with a
higher allocation than the initial tentative figure-but don't hold me to that. It's
purely a guess.
The allocations to local units of government are based on population, per capital
income and local tax effort. Allecations to the States are figured on
population,
urbanized population, per capita income, income tax collections, and general tax effort.
The allocation formula for local units of government tends to favor poorer areas
such as central cities and rural poor sectors. It also favors those units of government
that are imposing heavy tax burdens on their people in order to meet their needs.
In any case, revenue sharing allocations have absolutely nothing to do with who
happens to be the congressman
representing a particular district. So if Flint
gets more money than Grand Rapids, it won't be because Don Riegle is a White House
favorite. It will be because Flint comes out better under the formula.
There is no restriction on what the States can use the money for. But the local
units of government can use revenue sharing funds only for priority expenditures-public
safety, including law enforcement, fire protection and building code enforcement;
environmental protection, including sewage disposal, sanitation and pollution abatement;
public transportation, including transit
systems and streets and roads; health;
recreation; libraries; social services for the poor or aged; financial administration;
and necessary capital expenditures authorized by law.
I call your attention to the fact that Federal revenue sharing money can
be
used
for mass transit.
I have received some criticism for opposing use of Highway Trust Fund money for
mass transit. Let me make
my position cle ar. I favor greater
outlays for
mass transit. I simply do not believe Highway Trust Fund money should be used for mass
transit as long as there is a death trap or bottleneck like old US-131 here or anywhere
else in the country.
In any case, Grand Rapids has received $400,000 in Federal funds for mass transit
in
just the past 20 months. A program of transportation on demand will begin in the
Inner City on Jan. 1 and a study of transportation needs of the elderly is in progress.
When the study is completed, I feel sure the r ecommendations will be implemented.
We are moving ahead. We are making progress. And Federal revenue sharing
will help
to move us toward our goals.
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