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The original documents are located in Box 2, folder "9/15/76 - Ohio Municipal League" of
the Carla A. Hills Speeches 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
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Digitized from Box 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
FINAL
OHIO MUNICIPAL LEAGUE
SEPTEMBER 15, 1976
IT IS A SPECIAL HONOR TO BE INVITED HERE. IN FACT, WHEN
YOUR PRESIDENT, MAYOR LAWTHER FIRST EXTENDED THE INVITATION
-- A WEEK BEFORE THE REPUBLICAN CONVENTION -- I CONSIDERED
IT A GOOD OMEN.
I JUST KNEW YOU DIDN'T EXPECT TO BE HEARING, TODAY, FROM
A LAME-DUCK SECRETARY OF HUD.
IN THESE SEVEN SHORT WEEKS BEFORE THE NATIONAL ELECTION,
IT IS ALMOST IMPOSSIBLE TO DIVORCE ANYTHING ANYONE IN PUBLIC
LIFE SAYS FROM THE REALITIES OF THE NATIONAL POLITICAL SITUATION.
IN FACT, LAST WEEK, I WENT TO THE "HILL" TO TESTIFY
FAVORABLY ON THE NATIONAL NEIGHBORHOOD POLICY Act LEGISLATION
NOW UNDER STUDY BY THE HOUSE BANKING AND CURRENCY SUBCOMMITTEE
ON HOUSING,
THAT APPEARANCE, ON BEHALF OF THE ADMINISTRATION -- ROUTINE
IN THE LIFE OF ANY CABINET MEMBER -- WAS TO BE WHAT IS KNOWN ON
CAPITOL HILL AS A "CAKEWALK". SOME CAKEWALK! EVERY STATEMENT
I MADE IN THIS "ROUTINE" TESTIMONY WAS SCRUTINIZED AS THOUGH I
WERE TRYING TO WHEEL A TROJAN HORSE INTO THE CONGRESSIONAL INNER-
SANCTUM,
FORDO a LIBRARY GERALD
-2-
So, LET ME ASSURE YOU AT THE OUTSET: I BRING NO SUSPICIOUS
GIFT HORSE TO YOUR DELIBERATIONS TODAY. BUT, IF WHAT I SAY
SEEMS TO HAVE A POLITICAL CAST, THE FACT IS THAT HOUSING AND
URBAN DEVELOPMENT IS ONE OF THE KEY CAMPAIGN ISSUES THIS YEAR
-- AND THERE IS A BASIC DIFFERENCE IN APPROACH ON HOW TO BEST
CHANNEL FEDERAL HOUSING SUBSIDIES INTO THE ECONOMY.
LET US BEGIN, THEN, BY TAKING STOCK, WHERE WERE WE A YEAR
AGO? WHAT HAVE WE DONE ABOUT IT? WHAT HAVE WE LEARNED? WHERE
CAN WE GO?
NONE OF US CAN FORGET THAT IN 1975, THE MAJOR QUESTION-MARK
WAS WHETHER OUR NATIONAL ECONOMY WOULD SUSTAIN THE FORWARD
MOMENTUM WHICH WAS THEN ON THE CUSP OF A POSITIVE TURN-AROUND --
FROM THE BLEAK AND DEPRESSING 12-MONTH PERIOD OF A TERRIFYING
RECESSION COMPOUNDED BY UNCEASING INFLATION.
FOR SURELY, IF AMERICA WAS TO DO ANYTHING TO STEM THE
DETERIORATION OF ITS URBAN CENTERS -- AND COPE, AS WELL, WITH
THE PROBLEMS OF ITS SMALLER COMMUNITIES -- IT FIRST NEEDED A
ROBUST ECONOMY TO SUPPORT THAT EFFORT.
-3-
URBAN TAX REVENUES WERE WAY DOWN, VOTERS WERE TURNING
DOWN BOND ISSUES AT A CHILLING RATE, NEW YORK AND OTHER
CITIES WERE ON THE BRINK OF FINANCIAL FAILURE, ONE OF HUD's
MOST VISIBLE CONTRIBUTIONS SEEMED TO BE 51,000 ABANDONED
HOMES, AND HUD's NEW RENTAL SUBSIDY PROGRAM WAS BARELY OFF
THE GROUND WITH THE "EXPERTS" SAGELY PREDICTING THAT WE
COULDN'T POSSIBLY MEET OUR GOAL OF RESERVING FUNDS FOR
400,000 FAMILIES BEFORE THE NEXT FISCAL YEAR.
So, HERE WE ARE -- ONE YEAR LATER,
THE NATION AND ITS ECONOMY SURVIVED -- IN SPITE OF THE
DOOMSAYERS -- AND THE DELICATE HEALTH OF THE ECONOMIC UPTURN,
WHICH WE WATCHED SO FRETFULLY A YEAR AGO, HAS BECOME STRONGER
WITH EACH PASSING MONTH, TAX REVENUES OF STATE AND LOCAL
GOVERNMENTS ARE MORE THAN 11 PERCENT ABOVE LAST YEAR'S LEVEL.
HUD's INVENTORY OF UNSOLD HOMES HAS BEEN REDUCED BY A THIRD
FOR A 42-YEAR SALES RECORD, AND MANY OF THOSE HOMES HAVE
FOUND NEW OWNERS -- EAGER TO PUT THEM BACK INTO TIP-TOP LIVING
CONDITION -- UNDER OUR URBAN HOMESTEADING PROGRAMS SUCH AS
THOSE IN CINCINNATI AND HERE IN COLUMBUS.
-4-
WE ALREADY HAVE CONTRACTED TO ASSIST MORE THAN 300,000
RENTAL UNITS, AND WILL CLEARLY MEET OUR 400,000 GOAL BEFORE
OCTOBER 1ST -- WHEN FISCAL 1977 COMMENCES,
IN MY VIEW PRESIDENT FORD NOT ONLY PROVED THE SOUNDNESS
OF HIS ECONOMIC COURSE, HE SET THE TONE FOR A NEW NATIONAL
AWARENESS, THAT AMERICA'S WISDOM DOES NOT RESIDE ENTIRELY IN
THE CORRIDORS OF CONGRESS OR WITH THE FEDERAL FORM MAKERS --
THAT THE COMMUNITIES ACROSS OUR DIVERSE LAND VERY OFTEN CAN
DEVISE BETTER SOLUTIONS FOR THEIR INDIVIDUAL PROBLEMS THAN
CAN CONGRESS WHICH DEALS IN NATIONAL STATISTICS AND DEVISES
GENERAL SOLUTIONS THAT TOO FREQUENTLY MISS THE MARK,
INDEED, THE PRESIDENT'S CONTINUING CRUSADE TO RETURN
GOVERNMENT TO THE GOVERNED AND TO TRANSFER POWER AWAY FROM
THE PoToMac AND BACK TO THE PEOPLE -- HAS so CAPTURED THE
IMAGINATION OF OUR NATION IN THIS BICENTENNIAL YEAR, THAT
1976 HAS BECOME THE YEAR IN WHICH EVERY CANDIDATE FOR OFFICE
IS "RUNNING AGAINST WASHINGTON".
THE FACT IS: THE FEDERAL GOVERNMENT OVER THE PAST SEVERAL
DECADES HAS FRUSTRATED BOTH THOSE WHO HAVE GONE TO WASHINGTON
TO HELP MANAGE IT AS WELL AS THOSE WHO SEEK TO DEAL WITH IT.
-5-
PERHAPS THE MOST VIVID WORD PICTURE OF THIS FRUSTRATION
WAS OFFERED BY UTAH'S SENATOR JAKE GARN WHO SAID THAT WHEN HE
WAS THE MAYOR OF SALT LAKE CITY HE FELT LESS LIKE THE CHIEF
ADMINISTRATOR OF AN IMPORTANT URBAN ENTITY THAN THE LOCAL MANAGER
FOR THE FEDERAL GOVERNMENT,
THE GREAT AMERICAN ESTABLISHMENT THAT MEANS "WASHINGTON"
TO MOST PEOPLE WITH ITS VAST ARRAY OF CONGRESSIONAL COMMITTEES
AND SUBCOMMITTEES, PRESSURE GROUPS AND OFFICIAL LOBBIES -- HAS
SOMEWHERE LOST TRACK OF THE FACT THAT PROGRAMS FOR THE PEOPLE
CAN ONLY BE JUDGED ON HOW WELL THEY SERVE THE PEOPLE,
THE FEDERAL GOVERNMENT DOES NOT ANSWER THE NEEDS OF THE
PEOPLE SIMPLY BY LEGISLATING NEW PROGRAMS WITH FANCY TITLES
AND HIGHFLOWN STATMENTS OF PURPOSE, NOR CAN IT DELIVER THE
PROMISE OF AMERICA JUST BY THROWING MONEY AT PROBLEMS,
BUT THE FEDERAL GOVERNMENT IS WHAT THE AMERICAN PEOPLE
HAVE MADE IT. IT HAS GROWN TO FIT THE EXPRESSED WILL OF THE
ELECTORATE. MANY OF ITS FUNCTIONS AND MANY OF ITS AGENCIES
HAVE SURVIVED THE VOTERS AND THE LEGISLATURES WHICH PUT THEM
INTO BEING. MANY HAVE OUTLIVED THEIR USEFULNESS, YET CARRY
ON UNDER THE PROTECTION OF STRONG SPECIAL INTEREST GROUPS --
OR VOTING BLOCS -- OR SIMPLY BECAUSE NOT ENOUGH PEOPLE CARED.
-6-
IT TOOK A LONG TIME, AND A LOT OF LEGISLATION TO CREATE
THE PRESENT TANGLE, AND IT IS NOT GOING TO CHANGE OVER NIGHT,
REGARDLESS OF CAMPAIGN RHETORIC,
IT IS GOING TO TAKE A LOT OF HARD WORK AND A LOT MORE
PEOPLE ARE GOING TO HAVE TO CARE -- INSIDE AND OUTSIDE GOVERNMENT.
So, WHERE CAN WE GO FROM HERE?
SINCE THE START OF HIS ADMINISTRATION TWO YEARS AGO,
PRESIDENT FORD HAS HAD UNDER STUDY -- AND UNDER DISCUSSION
AT LOCAL FORUMS CONDUCTED PERSONALLY BY HIMSELF AND VICE PRESIDENT
ROCKEFELLER -- HOW TO IMPROVE THE DELIVERY OF FEDERAL ASSISTANCE
TO OUR URBAN CENTERS,
I HAVE TAKEN PART IN A NUMBER OF THOSE FORUMS,
THE PRESIDENT'S CONCERN IS WELL-WARRANTED. IN SPITE OF
BILLIONS OF TREASURY DOLLARS SPENT ON URBAN PROBLEMS, TOO MANY
OF OUR CITIES HAVE BEEN ON A DOWNWARD PATH FOR THE PAST TWO
DECADES,
-7-
ON JUNE 30TH, THE PRESIDENT APPOINTED A CABINET-LEVEL
COMMITTEE ON URBAN DEVELOPMENT AND NEIGHBORHOOD REVITALIZATION,
WHICH I CHAIR, TO UNDERTAKE A COMPREHENSIVE REVIEW OF ALL
FEDERAL PROGRAMS WHICH AFFECT OUR URBAN AREAS; TO CONSULT WITH
LOCAL OFFICIALS AND COMMUNITY GROUPS REGARDING HOW FEDERAL
PROGRAMS IMPACT ON COMMUNITIES, AND TO PROPOSE TO HIM STATUTORY
AND ADMINISTRATIVE CHANGES FOR IMPROVEMENT.
OUR INITIAL REVIEW OF THE AMASSED DATA QUICKLY CONFIRMED
WHAT WE ALREADY SUSPECTED.
OVER THE PAST HALF-CENTURY, SUCCEEDING CONGRESSES HAVE
ENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES
THE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY
FOR A CINCINNATI, A TOLEDO, A CLEVELAND, OR A COLUMBUS.
YET, IF WE STUDY THE PROPOSALS BEING OFFERED BY THE
DEMOCRATIC CANDIDATE, IT SEEMS EVIDENT THAT IN SPITE OF THE
CRITICISM HE HEAPS ON AN "INEFFICIENT WASHINGTON", HIS PARTY'S
PRIMARY "SOLUTION" TO OUR URBAN ILLS IS TO GIVE THE CITIES
MORE "WASHINGTON" THAN THEY ALREADY HAVE.
-8-
As YOU -- ALONG WITH JAKE GARN -- WOULD ATTEST, THE
"CURE-ALL" PROGRAMS DESIGNED IN WASHINGTON TO "FIX" LOCAL
PROBLEMS DO NOT COME TO YOU UNFETTERED, NO MATTER WHAT THEIR
EMOTIONAL APPEAL OR HIGH-MINDED RESOLVE.
TODAY, THERE ARE so MANY SUPPLIERS OF FEDERAL FUNDS WITH
so MANY DIFFERENT SCHEDULES, RULES, AND REGULATIONS THAT IT
IS A PRACTICAL IMPOSSIBILITY TO DESIGN AN EFFICIENT URBAN PLAN
IN OR OUT OF WASHINGTON THAT WILL GET THE MOST OUT OF THE
FEDERAL DOLLAR, IT IS LIKE ASKING Johns-Hansville, FRIGIDAIRE
AND ANACONDA COPPER -- EACH TO DESIGN AND EACH TO SEND TO THE
HOMEBUYER -- ITS PART OF A HOUSE.
THOSE WHO TALK ABOUT "MANAGING THE BUREAUCRACY" OR
"BRINGING WASHINGTON UNDER CONTROL" HAD BEST START WITH THAT
FACT-OF-LIFE IN MIND.
I HAVE REVIEWED 103 FEDERALLY FUNDED PROGRAMS WHICH AFFECT
OUR URBAN AREAS AND WHICH CARRY A PRICE TAG OF ROUGHLY $50
BILLION A YEAR. SIXTY-THREE OF THESE ARE GRANT PROGRAMS -- OF
WHICH ONLY 4 ARE BLOCK GRANTS AND 59 ARE CATEGORICALS. THE
REMAINING 40 ARE MISCELLANEOUS LOAN PROGRAMS,
-9-
SIGNIFICANTLY, LOCAL GOVERNMENTS ARE ELIGIBLE, DIRECT
APPLICANTS IN BARELY ONE-FOURTH OF ALL THESE PROGRAMS.
ALL OTHER PROGRAM FUNDS ARE DISTRIBUTED TO THE STATES
OR TO SPECIAL-PURPOSE LOCAL AGENCIES.
VIRTUALLY ALL THE 59 CATEGORICAL PROGRAMS HAVE EXTENSIVE
-- OFTEN OVERLAPPING -- MANDATORY APPLICATION REQUIREMENTS,
WITH FEW LIMITS ON REVIEW TIME AND NO ASSURANCE OF APPROVAL
AT THE LONG END OF THE FINAL LINE,
IT IS MY STRONG BELIEF THAT OUR CITIES CAN, AND WILL,
MOVE FORWARD IF THE FEDERAL ESTABLISHMENT SHIFTS EMPHASIS
FROM CATEGORICAL THINKING TO BLOCK GRANT PLANNING.
I BELIEVE THE BLOCK GRANT APPROACH WHICH RELEASES FUNDS
FROM WASHINGTON AND PUTS THEM IN THE HANDS AND UNDER THE
AUTHORITY OF LOCAL GOVERNMENT HAS THE BEST CHANCE OF WORKING
TO THE ULTIMATE ADVANTAGE OF ALL THE PEOPLE IN THAT LOCALITY.
THEN FUNDING IS PUT BEYOND THE NARROW PERSPECTIVE OF SOME
"EXPERT" IN WASHINGTON, WHO CANNOT POSSIBLY GRAPS THE INDIVIDUAL
DIFFERENCES OF THE THOUSANDS OF LOCALITIES ACROSS THIS 200
SQUARE MILES OF GREAT COUNTRY WE HAVE, AND OUR DOLLARS ARE MADE
MORE USEFUL IN ATTACKING THE ACTUAL NEEDS OF THE INDIVIDUAL
COMMUNITY AS KNOWN BY THE COMMUNITY ITSELF,
-10-
I WILL BE THE FIRST TO ADMIT THAT MUCH OF MY OWN
ENTHUSIASM FOR THE BLOCK GRANT CONCEPT STEMS FROM YOUR OWN
SUCCESSFUL EXPERIENCE WITH GENERAL REVENUE SHARING AND HUD's
COMMUNITY DEVELOPMENT PROGRAM.
AND PRESIDENT FORD, WHO SPENT 21 YEARS ON CAPITOL HILL
FIGHTING AGAINST THE FLOW OF YOUR POWER FROM CITY HALL TO
THE FEDERAL BUREAUCRACY, HAS BEEN USING THAT LONG EXPERIENCE,
IN HIS ROLE AS CHIEF EXECUTIVE, TO GIVE CONTROL BACK TO THE
CITIES, HIS FIGHT FOR RENEWAL OF REVENUE SHARING -- ONCE
AGAIN AGAINST THOSE IN CONGRESS WHO SEE ALL WISDOM IN THE
CONFINES OF WASHINGTON -- IS WELL KNOWN TO THIS AUDIENCE.
WE MUST FIND IT AT LEAST PECULIAR THAT THIS CONGRESS
WHICH HAS DEVISED so MANY MORE WAYS TO INCREASE THE FEDERAL
DEBT THROUGH MASSIVE SPENDING BILLS HAS BEEN so RECALCITRANT
ON THE ONE MAJOR SPENDING PROGRAM, ABOVE ALL OTHERS, THAT IS
CRUCIAL TO YOUR MOST URGENT NEEDS,
ONE MUST WONDER IF CONGRESS REALLY TRUSTS THE PEOPLE TO
MAKE THEIR OWN LOCAL DECISIONS,
-11-
WHATEVER THE ANSWER, IT IS CLEAR THAT THE REAL NEEDS OF
OUR CITIES, DURING THIS LONG PERIOD OF CONGRESSIONAL JOCKEYING
ON REVENUE SHARING, TOOK SECOND PLACE WITH THE MAJORITY ON
CAPITOL HILL.
IT IS SOMETHING TO THINK ABOUT ---- BECAUSE THE FREEDOM OF
LOCAL INITIATIVE IN THE REVENUE SHARING APPROACH -- WHETHER
GENERAL OR SPECIAL PROGRAMS (SUCH AS COMMUNITY DEVELOPMENT
BLOCK GRANTS) -- BRINGS ANOTHER IMPORTANT FREEDOM. AND THAT
IS FREEDOM FROM BUREAUCRATIC RED TAPE.
UNDER OUR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, FOR
EXAMPLE, REGULATIONS HAVE BEEN DRAMATICALLY REDUCED FROM THE
1,400 PAGES MINIMUM, THAT ENTANGLED THE OLD CATEGORICAL PROGRAMS,
TO ABOUT 45 PAGES TODAY.
AND FUNDING HAS INCREASED -- NOT DIMINISHED AS SOME
ORIGINALLY HAD FEARED AND PREDICTED. PRESIDENT FORD HAS
DOUBLED THE FUNDING LEVEL OF FISCAL 1975 TO $3.2 BILLION FOR
THE COMING FISCAL YEAR --- WHICH IS MORE THAN TWICE THE 1967
LEVEL OF THE FORMER CATEGORICAL PROGRAMS OUR BLOCK GRANT
PROGRAM REPLACED,
-12-
AT THE SAME TIME WE ARE FUNDING MORE THAN TWICE AS MANY
UNITS OF GOVERNMENT -- WHILE THE "HOLD HARMLESS" CLAUSE HAS
PROTECTED OUR OLDER CITIES FROM REDUCTIONS IN VITAL FUNDING,
Now, WE ARE CONCENTRATING ON CREATIVE NEW WAYS TO DEVELOP A
FUNDING FORMULA THAT WILL RESPOND TO THE SPECIAL NEEDS OF OUR
AGING COMMUNITIES.
IF WE ARE GOING TO "ABANDON" ANYTHING IN THE YEARS AHEAD,
WE HAD BETTER ABANDON THE OLD NOTION -- ADMITTEDLY FINANCED
AND FURTHERED OVER THE PAST SEVERAL DECADES BY GOVERNMENT-BACKED
MORTGAGE LOANS -- THAT THE WAY TO DEAL WITH AN OLD CITY
NEIGHBORHOOD IS TO THROW IT AWAY AND BUILD A NEW ONE IN THE
SUBURBS,
YET - IF WE STUDY MR. CARTER'S MESSAGE ON THE FORCED
PRODUCTION OF NEW HOUSING, WE BEGIN TO HEAR THE SAME FEARFUL
RUMBLE OF OUT-MIGRATION THAT HELPED STRIP CITIES OF THEIR
VITAL TAX BASE, FOR, MR. CARTER IS, IN EFFECT, CALLING FOR
A NEW WAVE OF GOVERNMENT-FINANCED FLIGHT TO THE SUBURBS WHEN
HE CALLS -- AS HE DID, ON APRIL 28, BEFORE THE PITTSBURGH
PRESS -- ON THE FEDERAL GOVERNMENT TO STIMULATE THE PRODUCTION
OF 2.5 MILLION HOUSING STARTS PER YEAR, WHICH IS MORE UNITS
THAN EVER BEFORE IN OUR HISTORY,
-13-
MR. CARTER EITHER IS NOT CONCERNED FOR OUR CITIES --
IN SPITE OF WHAT HE PROFESSES -- OR IF HE IS, HE SIMPLY DOES
NOT UNDERSTAND THE REALITIES OF THE SITUATION -- AS THEY ARE
ALREADY so WELL KNOWN BY CITY OFFICIALS,
CERTAINLY, THE FORD ADMINISTRATION BELIEVES IN A REASONABLE
LEVEL OF HOUSING PRODUCTION -- AND PROOF IS FOUND IN OUR TANDEM
MORTGAGE SUPPORT WHICH WAS JUDICIOUSLY AND EFFECTIVELY USED TO
NUTURE RECOVERY OF THE HOUSING INDUSTRY -- BOTH SINGLE FAMILY
AND MULTI-FAMILY.
BUT ALL OF US KNOW, BY AWFUL EXPERIENCE, THAT THE UNITED
STATES GOVERNMENT SIMPLY CANNOT SUBSIDIZE SUCH A FANTASTIC
NUMBER OF STARTS -- AND NOT EXPECT OVERPRODUCTION,
SURELY, WE ARE AWARE OF THE CONSEQUENCES OF OVER-PRODUCTION
FOR THOSE OLDER NEIGHBORHOODS. INSTEAD OF BEING REVITALIZED,
RECYCLED AND REUSED, THEY WILL SUFFER FURTHER ABANDONMENT AND
NEGLECT -- THROWN AWAY IN THE OLD TRADITION OF WASTE,
IN THIS THE CHOICE IS CLEAR:
WILL THE AMERICAN PEOPLE CHOOSE TO REINSTITUTE THE DISCREDITED
EXCESSES OF GOVERNMENT-FINANCED HOUSING PRODUCTION OR WILL THEY
CHOOSE REASONABLE LEVELS OF PRODUCTION, BALANCED BY A CRUCIALLY
NEEDED NATIONAL EFFORT TO PRESERVE AND RECYCLE THE PRECIOUS HOUSING
AND NEIGHBORHOOD RESOURCES THAT HAVE FOR TOO LONG BEEN NEGLECTED?
-14-
YOUR ACTIONS IN THE USE OF YOUR COMMUNITY DEVELOPMENT
BLOCK GRANTS OVER THE PAST YEAR UNDERSCORE THE HIGH PRIORITY
THE PEOPLE IN YOUR COMMUNITIES GIVE TO NEIGHBORHOOD REVITALIZATION.
INDEED, MORE THAN 60 PERCENT OF TOTAL BLOCK GRANT FUNDS TO DATE
HAVE BEEN ALLOCATED TO ACTIVITIES THAT WILL REVITALIZE YOUR
NEIGHBORHOODS.
AND, BASED ON THE ANALYSIS UNDERTAKEN TO DATE BY THE
PRESIDENT'S NEIGHBORHOOD COMMITTEE, THERE IS OVERWHELMING
EVIDENCE TO SUGGEST THAT PEOPLE IN OUR COMMUNITIES HAVE A LOT
MORE FAITH IN THEIR ABILITY TO WORK OUT THEIR OWN DESTINIES
THAN THEY HAVE IN THE FEDERAL GOVERNMENT TO DO IT FOR THEM.
THE EVIDENCE, IN FACT, IS so STRONG -- I SUGGEST THAT A
FORWARD-LOOKING APPROACH TO FEDERAL GRANT PROGRAMS SHOULD BUILD
ON FOUR PRINCIPLES:
FIRST, WE SHOULD PREFER BLOCK GRANTS TO CATEGORICALS FOR
ALL THE REASONS I HAVE STATED HERE, TODAY -- PARTICULARLY IN
GIVING LOCAL PEOPLE MORE CONTROL OVER THE RESOURCES THAT AFFECT
THEIR LIVES.
-15-
SECOND, FUNDING SHOULD BE PROVIDED THROUGH THE ELECTED
CHIEF EXECUTIVE OFFICERS OF STATES AND LOCALITIES BOTH TO ASSURE
COORDINATION IN THE USE OF AVAILABLE FUNDS AND ACCOUNTABILITY
TO THE PEOPLE,
THIRD, CITIZEN PARTICIPATION SHOULD BE A RULE RATHER THAN
AN EXCEPTION IN FEDERAL GRANT PROGRAMS. SUCH A RULE WOULD APPLY
NOT ONLY TO EXPLICIT PROGRAMS FOR THE POOR, BUT TO ALL PROGRAMS
WHICH AFFECT THEM.
AND, FINALLY, MULTI-YEAR FUNDING SHOULD ALSO BE THE RULE,
NOT THE EXCEPTION, so THAT OUR COMMUNITIES CAN INTELLIGENTLY
PLAN INTO THE FUTURE AND, AT THE SAME TIME, TAKE ADVANTAGE OF
TIMELY OPPORTUNITIES TO GET THE MOST EFFECTIVE RETURN ON THEIR
AVAILABLE FUNDS.
I DO NOT CLAIM THAT THESE FOUR PRINICPLES ARE THE BE-ALL
AND END-ALL FOR EVERY FEDERAL PROGRAM. BUT, I BELIEVE THAT
OUR CONSTITUENCIES WOULD FARE A LOT BETTER IF THESE BECAME THE
GUIDING PRINCIPLES OF FUTURE FEDERAL PROGRAM PLANNING,
THEY HELP PUT OUR PROGRAMS OUT THERE IN THE GLARING
SPOTLIGHT OF THE LOCAL ARENA WHERE THE PEOPLE THEMSELVES CAN
GET TO THEM -- AND DESIGN IMPROVEMENTS TO MEET CHANGING SITUATIONS,
-16-
UNFORTUNATELY, IT IS TRUE THAT EVERYTHING -- AS I SAID
WHEN I STARTED, GETS MIXED UP WITH POLITICS IN AN ELECTION
YEAR.
BUT, I DOUBT THAT ANY OF US WOULD HAVE IT ANY OTHER WAY.
"POLITICS" IS, AFTER ALL, THE ART OR SCIENCE OF GOVERNMENT
-- THE POLICIES, GOALS AND AFFAIRS OF GOVERNMENT.
AND ELECTION YEARS ARE ONE OF THE HEALTHIEST THINGS WE
HAVE -- EVEN WHEN THEY INTERFERE IN THE PRACTICE OF GOVERNMENT.
THEY FORCE US TO EXAMINE THE CANDIDATES AND THE POLICIES ON
WHICH THEY STAND.
QUITE FRANKLY, I AM VERY PROUD, AS A MEMBER OF HIS
ADMINISTRATION, OF THE ROLE PRESIDENT FORD HAS PLAYED IN
RESTORING AMERICA'S FAITH IN ITS OWN INSTITUTIONS; IN TURNING
THE ECONOMY IN THE RIGHT DIRECTION.
As HIS SECRETARY OF HOUSING AND URBAN DEVELOPMENT, I AM
PROUD TO PRESENT THE POLICIES AND THE GOALS HE HAS OFFERED
TO THE AMERICAN PEOPLE IN THIS VITAL AREA OF HUMAN EXISTENCE,
THANK YOU.
Document source description
This file contains material relating to Committee on Urban Development and Neighborhood Revitialization,
Community Block Grant Program.
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"ocrText": "The original documents are located in Box 2, folder \"9/15/76 - Ohio Municipal League\" of\nthe 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\nFINAL\nOHIO MUNICIPAL LEAGUE\nSEPTEMBER 15, 1976\nIT IS A SPECIAL HONOR TO BE INVITED HERE. IN FACT, WHEN\nYOUR PRESIDENT, MAYOR LAWTHER FIRST EXTENDED THE INVITATION\n-- A WEEK BEFORE THE REPUBLICAN CONVENTION -- I CONSIDERED\nIT A GOOD OMEN.\nI JUST KNEW YOU DIDN'T EXPECT TO BE HEARING, TODAY, FROM\nA LAME-DUCK SECRETARY OF HUD.\nIN THESE SEVEN SHORT WEEKS BEFORE THE NATIONAL ELECTION,\nIT IS ALMOST IMPOSSIBLE TO DIVORCE ANYTHING ANYONE IN PUBLIC\nLIFE SAYS FROM THE REALITIES OF THE NATIONAL POLITICAL SITUATION.\nIN FACT, LAST WEEK, I WENT TO THE \"HILL\" TO TESTIFY\nFAVORABLY ON THE NATIONAL NEIGHBORHOOD POLICY Act LEGISLATION\nNOW UNDER STUDY BY THE HOUSE BANKING AND CURRENCY SUBCOMMITTEE\nON HOUSING,\nTHAT APPEARANCE, ON BEHALF OF THE ADMINISTRATION -- ROUTINE\nIN THE LIFE OF ANY CABINET MEMBER -- WAS TO BE WHAT IS KNOWN ON\nCAPITOL HILL AS A \"CAKEWALK\". SOME CAKEWALK! EVERY STATEMENT\nI MADE IN THIS \"ROUTINE\" TESTIMONY WAS SCRUTINIZED AS THOUGH I\nWERE TRYING TO WHEEL A TROJAN HORSE INTO THE CONGRESSIONAL INNER-\nSANCTUM,\nFORDO a LIBRARY GERALD\n-2-\nSo, LET ME ASSURE YOU AT THE OUTSET: I BRING NO SUSPICIOUS\nGIFT HORSE TO YOUR DELIBERATIONS TODAY. BUT, IF WHAT I SAY\nSEEMS TO HAVE A POLITICAL CAST, THE FACT IS THAT HOUSING AND\nURBAN DEVELOPMENT IS ONE OF THE KEY CAMPAIGN ISSUES THIS YEAR\n-- AND THERE IS A BASIC DIFFERENCE IN APPROACH ON HOW TO BEST\nCHANNEL FEDERAL HOUSING SUBSIDIES INTO THE ECONOMY.\nLET US BEGIN, THEN, BY TAKING STOCK, WHERE WERE WE A YEAR\nAGO? WHAT HAVE WE DONE ABOUT IT? WHAT HAVE WE LEARNED? WHERE\nCAN WE GO?\nNONE OF US CAN FORGET THAT IN 1975, THE MAJOR QUESTION-MARK\nWAS WHETHER OUR NATIONAL ECONOMY WOULD SUSTAIN THE FORWARD\nMOMENTUM WHICH WAS THEN ON THE CUSP OF A POSITIVE TURN-AROUND --\nFROM THE BLEAK AND DEPRESSING 12-MONTH PERIOD OF A TERRIFYING\nRECESSION COMPOUNDED BY UNCEASING INFLATION.\nFOR SURELY, IF AMERICA WAS TO DO ANYTHING TO STEM THE\nDETERIORATION OF ITS URBAN CENTERS -- AND COPE, AS WELL, WITH\nTHE PROBLEMS OF ITS SMALLER COMMUNITIES -- IT FIRST NEEDED A\nROBUST ECONOMY TO SUPPORT THAT EFFORT.\n-3-\nURBAN TAX REVENUES WERE WAY DOWN, VOTERS WERE TURNING\nDOWN BOND ISSUES AT A CHILLING RATE, NEW YORK AND OTHER\nCITIES WERE ON THE BRINK OF FINANCIAL FAILURE, ONE OF HUD's\nMOST VISIBLE CONTRIBUTIONS SEEMED TO BE 51,000 ABANDONED\nHOMES, AND HUD's NEW RENTAL SUBSIDY PROGRAM WAS BARELY OFF\nTHE GROUND WITH THE \"EXPERTS\" SAGELY PREDICTING THAT WE\nCOULDN'T POSSIBLY MEET OUR GOAL OF RESERVING FUNDS FOR\n400,000 FAMILIES BEFORE THE NEXT FISCAL YEAR.\nSo, HERE WE ARE -- ONE YEAR LATER,\nTHE NATION AND ITS ECONOMY SURVIVED -- IN SPITE OF THE\nDOOMSAYERS -- AND THE DELICATE HEALTH OF THE ECONOMIC UPTURN,\nWHICH WE WATCHED SO FRETFULLY A YEAR AGO, HAS BECOME STRONGER\nWITH EACH PASSING MONTH, TAX REVENUES OF STATE AND LOCAL\nGOVERNMENTS ARE MORE THAN 11 PERCENT ABOVE LAST YEAR'S LEVEL.\nHUD's INVENTORY OF UNSOLD HOMES HAS BEEN REDUCED BY A THIRD\nFOR A 42-YEAR SALES RECORD, AND MANY OF THOSE HOMES HAVE\nFOUND NEW OWNERS -- EAGER TO PUT THEM BACK INTO TIP-TOP LIVING\nCONDITION -- UNDER OUR URBAN HOMESTEADING PROGRAMS SUCH AS\nTHOSE IN CINCINNATI AND HERE IN COLUMBUS.\n-4-\nWE ALREADY HAVE CONTRACTED TO ASSIST MORE THAN 300,000\nRENTAL UNITS, AND WILL CLEARLY MEET OUR 400,000 GOAL BEFORE\nOCTOBER 1ST -- WHEN FISCAL 1977 COMMENCES,\nIN MY VIEW PRESIDENT FORD NOT ONLY PROVED THE SOUNDNESS\nOF HIS ECONOMIC COURSE, HE SET THE TONE FOR A NEW NATIONAL\nAWARENESS, THAT AMERICA'S WISDOM DOES NOT RESIDE ENTIRELY IN\nTHE CORRIDORS OF CONGRESS OR WITH THE FEDERAL FORM MAKERS --\nTHAT THE COMMUNITIES ACROSS OUR DIVERSE LAND VERY OFTEN CAN\nDEVISE BETTER SOLUTIONS FOR THEIR INDIVIDUAL PROBLEMS THAN\nCAN CONGRESS WHICH DEALS IN NATIONAL STATISTICS AND DEVISES\nGENERAL SOLUTIONS THAT TOO FREQUENTLY MISS THE MARK,\nINDEED, THE PRESIDENT'S CONTINUING CRUSADE TO RETURN\nGOVERNMENT TO THE GOVERNED AND TO TRANSFER POWER AWAY FROM\nTHE PoToMac AND BACK TO THE PEOPLE -- HAS so CAPTURED THE\nIMAGINATION OF OUR NATION IN THIS BICENTENNIAL YEAR, THAT\n1976 HAS BECOME THE YEAR IN WHICH EVERY CANDIDATE FOR OFFICE\nIS \"RUNNING AGAINST WASHINGTON\".\nTHE FACT IS: THE FEDERAL GOVERNMENT OVER THE PAST SEVERAL\nDECADES HAS FRUSTRATED BOTH THOSE WHO HAVE GONE TO WASHINGTON\nTO HELP MANAGE IT AS WELL AS THOSE WHO SEEK TO DEAL WITH IT.\n-5-\nPERHAPS THE MOST VIVID WORD PICTURE OF THIS FRUSTRATION\nWAS OFFERED BY UTAH'S SENATOR JAKE GARN WHO SAID THAT WHEN HE\nWAS THE MAYOR OF SALT LAKE CITY HE FELT LESS LIKE THE CHIEF\nADMINISTRATOR OF AN IMPORTANT URBAN ENTITY THAN THE LOCAL MANAGER\nFOR THE FEDERAL GOVERNMENT,\nTHE GREAT AMERICAN ESTABLISHMENT THAT MEANS \"WASHINGTON\"\nTO MOST PEOPLE WITH ITS VAST ARRAY OF CONGRESSIONAL COMMITTEES\nAND SUBCOMMITTEES, PRESSURE GROUPS AND OFFICIAL LOBBIES -- HAS\nSOMEWHERE LOST TRACK OF THE FACT THAT PROGRAMS FOR THE PEOPLE\nCAN ONLY BE JUDGED ON HOW WELL THEY SERVE THE PEOPLE,\nTHE FEDERAL GOVERNMENT DOES NOT ANSWER THE NEEDS OF THE\nPEOPLE SIMPLY BY LEGISLATING NEW PROGRAMS WITH FANCY TITLES\nAND HIGHFLOWN STATMENTS OF PURPOSE, NOR CAN IT DELIVER THE\nPROMISE OF AMERICA JUST BY THROWING MONEY AT PROBLEMS,\nBUT THE FEDERAL GOVERNMENT IS WHAT THE AMERICAN PEOPLE\nHAVE MADE IT. IT HAS GROWN TO FIT THE EXPRESSED WILL OF THE\nELECTORATE. MANY OF ITS FUNCTIONS AND MANY OF ITS AGENCIES\nHAVE SURVIVED THE VOTERS AND THE LEGISLATURES WHICH PUT THEM\nINTO BEING. MANY HAVE OUTLIVED THEIR USEFULNESS, YET CARRY\nON UNDER THE PROTECTION OF STRONG SPECIAL INTEREST GROUPS --\nOR VOTING BLOCS -- OR SIMPLY BECAUSE NOT ENOUGH PEOPLE CARED.\n-6-\nIT TOOK A LONG TIME, AND A LOT OF LEGISLATION TO CREATE\nTHE PRESENT TANGLE, AND IT IS NOT GOING TO CHANGE OVER NIGHT,\nREGARDLESS OF CAMPAIGN RHETORIC,\nIT IS GOING TO TAKE A LOT OF HARD WORK AND A LOT MORE\nPEOPLE ARE GOING TO HAVE TO CARE -- INSIDE AND OUTSIDE GOVERNMENT.\nSo, WHERE CAN WE GO FROM HERE?\nSINCE THE START OF HIS ADMINISTRATION TWO YEARS AGO,\nPRESIDENT FORD HAS HAD UNDER STUDY -- AND UNDER DISCUSSION\nAT LOCAL FORUMS CONDUCTED PERSONALLY BY HIMSELF AND VICE PRESIDENT\nROCKEFELLER -- HOW TO IMPROVE THE DELIVERY OF FEDERAL ASSISTANCE\nTO OUR URBAN CENTERS,\nI HAVE TAKEN PART IN A NUMBER OF THOSE FORUMS,\nTHE PRESIDENT'S CONCERN IS WELL-WARRANTED. IN SPITE OF\nBILLIONS OF TREASURY DOLLARS SPENT ON URBAN PROBLEMS, TOO MANY\nOF OUR CITIES HAVE BEEN ON A DOWNWARD PATH FOR THE PAST TWO\nDECADES,\n-7-\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 WITH\nLOCAL OFFICIALS AND COMMUNITY GROUPS REGARDING HOW FEDERAL\nPROGRAMS IMPACT ON COMMUNITIES, AND TO PROPOSE TO HIM STATUTORY\nAND ADMINISTRATIVE CHANGES FOR IMPROVEMENT.\nOUR INITIAL REVIEW OF THE AMASSED DATA QUICKLY CONFIRMED\nWHAT WE ALREADY SUSPECTED.\nOVER THE PAST HALF-CENTURY, SUCCEEDING CONGRESSES HAVE\nENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES\nTHE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY\nFOR A CINCINNATI, A TOLEDO, A CLEVELAND, OR A COLUMBUS.\nYET, IF WE STUDY THE PROPOSALS BEING OFFERED BY THE\nDEMOCRATIC CANDIDATE, IT SEEMS EVIDENT THAT IN SPITE OF THE\nCRITICISM HE HEAPS ON AN \"INEFFICIENT WASHINGTON\", HIS PARTY'S\nPRIMARY \"SOLUTION\" TO OUR URBAN ILLS IS TO GIVE THE CITIES\nMORE \"WASHINGTON\" THAN THEY ALREADY HAVE.\n-8-\nAs YOU -- ALONG WITH JAKE GARN -- WOULD ATTEST, THE\n\"CURE-ALL\" PROGRAMS DESIGNED IN WASHINGTON TO \"FIX\" LOCAL\nPROBLEMS DO NOT COME TO YOU UNFETTERED, NO MATTER WHAT THEIR\nEMOTIONAL APPEAL OR HIGH-MINDED RESOLVE.\nTODAY, THERE ARE so MANY SUPPLIERS OF FEDERAL FUNDS WITH\nso MANY DIFFERENT SCHEDULES, RULES, AND REGULATIONS THAT IT\nIS A PRACTICAL IMPOSSIBILITY TO DESIGN AN EFFICIENT URBAN PLAN\nIN OR OUT OF WASHINGTON THAT WILL GET THE MOST OUT OF THE\nFEDERAL DOLLAR, IT IS LIKE ASKING Johns-Hansville, FRIGIDAIRE\nAND ANACONDA COPPER -- EACH TO DESIGN AND EACH TO SEND TO THE\nHOMEBUYER -- ITS PART OF A HOUSE.\nTHOSE WHO TALK ABOUT \"MANAGING THE BUREAUCRACY\" OR\n\"BRINGING WASHINGTON UNDER CONTROL\" HAD BEST START WITH THAT\nFACT-OF-LIFE IN MIND.\nI HAVE REVIEWED 103 FEDERALLY FUNDED PROGRAMS WHICH AFFECT\nOUR URBAN AREAS AND WHICH CARRY A PRICE TAG OF ROUGHLY $50\nBILLION A YEAR. SIXTY-THREE OF THESE ARE GRANT PROGRAMS -- OF\nWHICH ONLY 4 ARE BLOCK GRANTS AND 59 ARE CATEGORICALS. THE\nREMAINING 40 ARE MISCELLANEOUS LOAN PROGRAMS,\n-9-\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,\nIT IS MY STRONG BELIEF THAT OUR CITIES CAN, AND WILL,\nMOVE FORWARD IF THE FEDERAL ESTABLISHMENT SHIFTS EMPHASIS\nFROM CATEGORICAL THINKING TO BLOCK GRANT PLANNING.\nI BELIEVE THE BLOCK GRANT APPROACH WHICH RELEASES FUNDS\nFROM WASHINGTON AND PUTS THEM IN THE HANDS AND UNDER THE\nAUTHORITY OF LOCAL GOVERNMENT HAS THE BEST CHANCE OF WORKING\nTO THE ULTIMATE ADVANTAGE OF ALL THE PEOPLE IN THAT LOCALITY.\nTHEN FUNDING IS PUT BEYOND THE NARROW PERSPECTIVE OF SOME\n\"EXPERT\" IN WASHINGTON, WHO CANNOT POSSIBLY GRAPS THE INDIVIDUAL\nDIFFERENCES OF THE THOUSANDS OF LOCALITIES ACROSS THIS 200\nSQUARE MILES OF GREAT COUNTRY WE HAVE, AND OUR DOLLARS ARE MADE\nMORE USEFUL IN ATTACKING THE ACTUAL NEEDS OF THE INDIVIDUAL\nCOMMUNITY AS KNOWN BY THE COMMUNITY ITSELF,\n-10-\nI WILL BE THE FIRST TO ADMIT THAT MUCH OF MY OWN\nENTHUSIASM FOR THE BLOCK GRANT CONCEPT STEMS FROM YOUR OWN\nSUCCESSFUL EXPERIENCE WITH GENERAL REVENUE SHARING AND HUD's\nCOMMUNITY DEVELOPMENT PROGRAM.\nAND PRESIDENT FORD, WHO SPENT 21 YEARS ON CAPITOL HILL\nFIGHTING AGAINST THE FLOW OF YOUR POWER FROM CITY HALL TO\nTHE FEDERAL BUREAUCRACY, HAS BEEN USING THAT LONG EXPERIENCE,\nIN HIS ROLE AS CHIEF EXECUTIVE, TO GIVE CONTROL BACK TO THE\nCITIES, HIS FIGHT FOR RENEWAL OF REVENUE SHARING -- ONCE\nAGAIN AGAINST THOSE IN CONGRESS WHO SEE ALL WISDOM IN THE\nCONFINES OF WASHINGTON -- IS WELL KNOWN TO THIS AUDIENCE.\nWE MUST FIND IT AT LEAST PECULIAR THAT THIS CONGRESS\nWHICH HAS DEVISED so MANY MORE WAYS TO INCREASE THE FEDERAL\nDEBT THROUGH MASSIVE SPENDING BILLS HAS BEEN so RECALCITRANT\nON THE ONE MAJOR SPENDING PROGRAM, ABOVE ALL OTHERS, THAT IS\nCRUCIAL TO YOUR MOST URGENT NEEDS,\nONE MUST WONDER IF CONGRESS REALLY TRUSTS THE PEOPLE TO\nMAKE THEIR OWN LOCAL DECISIONS,\n-11-\nWHATEVER THE ANSWER, IT IS CLEAR THAT THE REAL NEEDS OF\nOUR CITIES, DURING THIS LONG PERIOD OF CONGRESSIONAL JOCKEYING\nON REVENUE SHARING, TOOK SECOND PLACE WITH THE MAJORITY ON\nCAPITOL HILL.\nIT IS SOMETHING TO THINK ABOUT ---- BECAUSE THE FREEDOM OF\nLOCAL INITIATIVE IN THE REVENUE SHARING APPROACH -- WHETHER\nGENERAL OR SPECIAL PROGRAMS (SUCH AS COMMUNITY DEVELOPMENT\nBLOCK GRANTS) -- BRINGS ANOTHER IMPORTANT FREEDOM. AND THAT\nIS FREEDOM FROM BUREAUCRATIC RED TAPE.\nUNDER OUR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, FOR\nEXAMPLE, REGULATIONS HAVE BEEN DRAMATICALLY REDUCED FROM THE\n1,400 PAGES MINIMUM, THAT ENTANGLED THE OLD CATEGORICAL PROGRAMS,\nTO ABOUT 45 PAGES TODAY.\nAND FUNDING HAS INCREASED -- NOT DIMINISHED AS SOME\nORIGINALLY HAD FEARED AND PREDICTED. PRESIDENT FORD HAS\nDOUBLED THE FUNDING LEVEL OF FISCAL 1975 TO $3.2 BILLION FOR\nTHE COMING FISCAL YEAR --- WHICH IS MORE THAN TWICE THE 1967\nLEVEL OF THE FORMER CATEGORICAL PROGRAMS OUR BLOCK GRANT\nPROGRAM REPLACED,\n-12-\nAT THE SAME TIME WE ARE FUNDING MORE THAN TWICE AS MANY\nUNITS OF GOVERNMENT -- WHILE THE \"HOLD HARMLESS\" CLAUSE HAS\nPROTECTED OUR OLDER CITIES FROM REDUCTIONS IN VITAL FUNDING,\nNow, WE ARE CONCENTRATING ON CREATIVE NEW WAYS TO DEVELOP A\nFUNDING FORMULA THAT WILL RESPOND TO THE SPECIAL NEEDS OF OUR\nAGING COMMUNITIES.\nIF WE ARE GOING TO \"ABANDON\" ANYTHING IN THE YEARS AHEAD,\nWE HAD BETTER ABANDON THE OLD NOTION -- ADMITTEDLY FINANCED\nAND FURTHERED OVER THE PAST SEVERAL DECADES BY GOVERNMENT-BACKED\nMORTGAGE LOANS -- THAT THE WAY TO DEAL WITH AN OLD CITY\nNEIGHBORHOOD IS TO THROW IT AWAY AND BUILD A NEW ONE IN THE\nSUBURBS,\nYET - IF WE STUDY MR. CARTER'S MESSAGE ON THE FORCED\nPRODUCTION OF NEW HOUSING, WE BEGIN TO HEAR THE SAME FEARFUL\nRUMBLE OF OUT-MIGRATION THAT HELPED STRIP CITIES OF THEIR\nVITAL TAX BASE, FOR, MR. CARTER IS, IN EFFECT, CALLING FOR\nA NEW WAVE OF GOVERNMENT-FINANCED FLIGHT TO THE SUBURBS WHEN\nHE CALLS -- AS HE DID, ON APRIL 28, BEFORE THE PITTSBURGH\nPRESS -- ON THE FEDERAL GOVERNMENT TO STIMULATE THE PRODUCTION\nOF 2.5 MILLION HOUSING STARTS PER YEAR, WHICH IS MORE UNITS\nTHAN EVER BEFORE IN OUR HISTORY,\n-13-\nMR. CARTER EITHER IS NOT CONCERNED FOR OUR CITIES --\nIN SPITE OF WHAT HE PROFESSES -- OR IF HE IS, HE SIMPLY DOES\nNOT UNDERSTAND THE REALITIES OF THE SITUATION -- AS THEY ARE\nALREADY so WELL KNOWN BY CITY OFFICIALS,\nCERTAINLY, THE FORD ADMINISTRATION BELIEVES IN A REASONABLE\nLEVEL OF HOUSING PRODUCTION -- AND PROOF IS FOUND IN OUR TANDEM\nMORTGAGE SUPPORT WHICH WAS JUDICIOUSLY AND EFFECTIVELY USED TO\nNUTURE RECOVERY OF THE HOUSING INDUSTRY -- BOTH SINGLE FAMILY\nAND MULTI-FAMILY.\nBUT ALL OF US KNOW, BY AWFUL EXPERIENCE, THAT THE UNITED\nSTATES GOVERNMENT SIMPLY CANNOT SUBSIDIZE SUCH A FANTASTIC\nNUMBER OF STARTS -- AND NOT EXPECT OVERPRODUCTION,\nSURELY, WE ARE AWARE OF THE CONSEQUENCES OF OVER-PRODUCTION\nFOR THOSE OLDER NEIGHBORHOODS. INSTEAD OF BEING REVITALIZED,\nRECYCLED AND REUSED, THEY WILL SUFFER FURTHER ABANDONMENT AND\nNEGLECT -- THROWN AWAY IN THE OLD TRADITION OF WASTE,\nIN THIS THE CHOICE IS CLEAR:\nWILL THE AMERICAN PEOPLE CHOOSE TO REINSTITUTE THE DISCREDITED\nEXCESSES OF GOVERNMENT-FINANCED HOUSING PRODUCTION OR WILL THEY\nCHOOSE REASONABLE LEVELS OF PRODUCTION, BALANCED BY A CRUCIALLY\nNEEDED NATIONAL EFFORT TO PRESERVE AND RECYCLE THE PRECIOUS HOUSING\nAND NEIGHBORHOOD RESOURCES THAT HAVE FOR TOO LONG BEEN NEGLECTED?\n-14-\nYOUR ACTIONS IN THE USE OF YOUR COMMUNITY DEVELOPMENT\nBLOCK GRANTS OVER THE PAST YEAR UNDERSCORE THE HIGH PRIORITY\nTHE PEOPLE IN YOUR COMMUNITIES GIVE TO NEIGHBORHOOD REVITALIZATION.\nINDEED, MORE THAN 60 PERCENT OF TOTAL BLOCK GRANT FUNDS TO DATE\nHAVE BEEN ALLOCATED TO ACTIVITIES THAT WILL REVITALIZE YOUR\nNEIGHBORHOODS.\nAND, BASED ON THE ANALYSIS UNDERTAKEN TO DATE BY THE\nPRESIDENT'S NEIGHBORHOOD COMMITTEE, THERE IS OVERWHELMING\nEVIDENCE TO SUGGEST THAT PEOPLE IN OUR COMMUNITIES HAVE A LOT\nMORE FAITH IN THEIR ABILITY TO WORK OUT THEIR OWN DESTINIES\nTHAN THEY HAVE IN THE FEDERAL GOVERNMENT TO DO IT FOR THEM.\nTHE EVIDENCE, IN FACT, IS so STRONG -- I SUGGEST THAT A\nFORWARD-LOOKING APPROACH TO FEDERAL GRANT PROGRAMS SHOULD BUILD\nON FOUR PRINCIPLES:\nFIRST, WE SHOULD PREFER BLOCK GRANTS TO CATEGORICALS FOR\nALL THE REASONS I HAVE STATED HERE, TODAY -- PARTICULARLY IN\nGIVING LOCAL PEOPLE MORE CONTROL OVER THE RESOURCES THAT AFFECT\nTHEIR LIVES.\n-15-\nSECOND, FUNDING SHOULD BE PROVIDED THROUGH THE ELECTED\nCHIEF EXECUTIVE OFFICERS OF STATES AND LOCALITIES BOTH TO ASSURE\nCOORDINATION IN THE USE OF AVAILABLE FUNDS AND ACCOUNTABILITY\nTO THE PEOPLE,\nTHIRD, CITIZEN PARTICIPATION SHOULD BE A RULE RATHER THAN\nAN EXCEPTION IN FEDERAL GRANT PROGRAMS. SUCH A RULE WOULD APPLY\nNOT ONLY TO EXPLICIT PROGRAMS FOR THE POOR, BUT TO ALL PROGRAMS\nWHICH AFFECT THEM.\nAND, FINALLY, MULTI-YEAR FUNDING SHOULD ALSO BE THE RULE,\nNOT THE EXCEPTION, so THAT OUR COMMUNITIES CAN INTELLIGENTLY\nPLAN INTO THE FUTURE AND, AT THE SAME TIME, TAKE ADVANTAGE OF\nTIMELY OPPORTUNITIES TO GET THE MOST EFFECTIVE RETURN ON THEIR\nAVAILABLE FUNDS.\nI DO NOT CLAIM THAT THESE FOUR PRINICPLES ARE THE BE-ALL\nAND END-ALL FOR EVERY FEDERAL PROGRAM. BUT, I BELIEVE THAT\nOUR CONSTITUENCIES WOULD FARE A LOT BETTER IF THESE BECAME THE\nGUIDING PRINCIPLES OF FUTURE FEDERAL PROGRAM PLANNING,\nTHEY HELP PUT OUR PROGRAMS OUT THERE IN THE GLARING\nSPOTLIGHT OF THE LOCAL ARENA WHERE THE PEOPLE THEMSELVES CAN\nGET TO THEM -- AND DESIGN IMPROVEMENTS TO MEET CHANGING SITUATIONS,\n-16-\nUNFORTUNATELY, IT IS TRUE THAT EVERYTHING -- AS I SAID\nWHEN I STARTED, GETS MIXED UP WITH POLITICS IN AN ELECTION\nYEAR.\nBUT, I DOUBT THAT ANY OF US WOULD HAVE IT ANY OTHER WAY.\n\"POLITICS\" IS, AFTER ALL, THE ART OR SCIENCE OF GOVERNMENT\n-- THE POLICIES, GOALS AND AFFAIRS OF GOVERNMENT.\nAND ELECTION YEARS ARE ONE OF THE HEALTHIEST THINGS WE\nHAVE -- EVEN WHEN THEY INTERFERE IN THE PRACTICE OF GOVERNMENT.\nTHEY FORCE US TO EXAMINE THE CANDIDATES AND THE POLICIES ON\nWHICH THEY STAND.\nQUITE FRANKLY, I AM VERY PROUD, AS A MEMBER OF HIS\nADMINISTRATION, OF THE ROLE PRESIDENT FORD HAS PLAYED IN\nRESTORING AMERICA'S FAITH IN ITS OWN INSTITUTIONS; IN TURNING\nTHE ECONOMY IN THE RIGHT DIRECTION.\nAs HIS SECRETARY OF HOUSING AND URBAN DEVELOPMENT, I AM\nPROUD TO PRESENT THE POLICIES AND THE GOALS HE HAS OFFERED\nTO THE AMERICAN PEOPLE IN THIS VITAL AREA OF HUMAN EXISTENCE,\nTHANK YOU."
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