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10/19/76 - California League of Cities
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This file contains material relating to Community Development Block Grant Programs, Committee on Urban Development and Neighborhood Revitialization.
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "10/19/76 - California League of
Cities" 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
photocopies or other reproductions of copyrighted material. Gerald Ford 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
Digitized from Box 2 of the Carla A. Hills Speeches at the Gerald R. Ford Presidential Library
84
FINAL
CALIFORNIA LEAGUE OF CITIES
OCTOBER 19, 1976
I AM so PLEASED TO RETURN HOME TO CALIFORNIA. THANK
YOU FOR THIS OPPORTUNITY TO APPEAR BEFORE YOU TODAY,
IN THE FIVE DECADES SINCE THE BIRTH OF THE LEAGUE IDEA,
OUR CITIES HAVE MULTIPLIED IN THE WAKE OF UNPRECEDENTED
TECHNICAL EXPANSION AND POPULATION EXPLOSION.
THE URBAN ILLS WHICH BECAME INCREASINGLY EVIDENT AS
THE INDUSTRIAL REVOLUTION PASSED INTO THE 20TH CENTURY
WERE POPULARLY REFERRED TO AS "THE FAILURE OF OUR CITIES"
BY COUNTRY DWELLERS,
BUT, WHERE OUR FIRST "FAILURE" WAS THE INABILITY OF
A RURAL NATION TO RECOGNIZE THE PORTENT OF THE URBAN
CONDITION, THE SECOND "FAILURE" CAME IN THE DECADE OF
THE 1960's.
FOR, IN OUR RUSH TO APPLY MASSIVE FEDERAL REMEDIES
TO URBAN SORES THAT HAD BEEN FESTERING FOR DECADES, WE
NOT ONLY WORSENED THE CONDITIONS IN OUR INNER CITIES --
WE SUCCEEDED IN STRIPPING OUR CITIES OF THE ECONOMIC BASE
NEEDED TO KEEP THE DISEASE FROM SPREADING.
GERALD & FORD
-2-
I WOULD LIKE TO TALK TO YOU, TODAY, OF THE CHANGING
NATURE OF INTERGOVERNMENTAL RELATIONS AND PARTICULARLY
OF THE FEDERAL ROLE IN ASSISTING OUR CITIES,
OURS, WE ARE OFTEN REMINDED, IS A THREE-TIERED SYSTEM
OF GOVERNMENT.
BUT, WE CANNOT DISCUSS THE CHANGING RELATIONSHIPS
AMONG THE THREE TIERS -- FEDERAL, STATE AND LOCAL --
WITHOUT CONSIDERING, FIRST, THE CHANGING NATURE OF OUR
NATIONAL ECONOMY, FOR, IN THE FINAL ANALYSIS IT IS THE
STATE OF OUR ECONOMY THAT DICTATES HOW THAT RELATIONSHIP
WILL WORK.
PROFESSOR HAROLD HILL SAID IN "THE MUSIC MAN":
"WE'VE GOT A GREAT BAND! SWELL UNIFORMS!
Now, IF WE COULD ONLY AFFORD INSTRUMENTS,
WE COULD TEACH THE BAND HOW TO PLAY.
THUS THE PRIMARY REQUISITE IS A STABLE, GROWING NATIONAL
ECONOMY, SUPPORTED BY COMMERCIAL EXPANSION AND PRODUCTIVE
EMPLOYMENT -- so WE CAN AFFORD THE INSTRUMENTS OF INTER-
GOVERNMENTAL PRODUCTIVITY.
-3-
FOR, AS ANY STUDENT OF THE URBAN CONDITION KNOWS, THE
ECONOMIC ILLS THAT BESET A NATION STRIKE FIRST AND HARDEST
IN THE POOREST CENTERS OF OUR CITIES. AND THOSE CENTERS
ARE THE LAST TO FEEL ANY VISTAGES OF NATIONAL ECONOMIC UPTURN.
So, 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.
INFLATION STOOD AT 12 TO 14 PERCENT, THE UNEMPLOYMENT
RATE WAS ABOUT 9 PERCENT,
URBAN REVENUES WERE WAY DOWN. NEW YORK WAS ON THE BRINK
OF FINANCIAL FAILURE, INDUSTRY WAS DEPRESSED AND THE HOUSING
SECTOR WAS SUFFERING ITS WORST YEAR IN THREE DECADES.
-4-
ON CAPITOL HILL, POLITICAL LEADERS, LIKE YOUR SPEAKER
THIS MORNING, WERE PROPHESIZING A NATIONAL COLLAPSE UNLESS
WE ENGAGED IN MASSIVE FEDERAL SPENDING -- IN THE FORM OF
SUBSIDIES -- PARTICULARLY IN THE HOUSING INDUSTRY.
A PARADE OF POORLY CONCEIVED SPENDING BILLS WERE LITERALLY
TUMBLING OUT OF THE LEGISLATIVE BRANCH TO FUEL OUR DOUBLE-DIGIT
INFLATION.
NOTWITHSTANDING WE STOOD IN AN ELECTION CYCLE, OUR
PRESIDENT HAD THE COURAGE TO PROTECT THIS NATION AGAINST THE
RAVAGES OF FURTHER INFLATION,
SENATOR MONDALE MENTIONED TO YOU THIS MORNING THE VETO
OF THE HOUSING AcT OF 1975 -- AN ILL-CONCEIVED, MULTI-BILLION
DOLLAR MEASURE WHICH THE DEMOCRATIC CHAIRMAN OF THE HOUSE
BANKING COMMITTEE CALLED "A TURKEY THAT WOULDN'T FLY".
THE SENATOR NEGLECTED TO MENTION THAT WITHIN THREE DAYS
AFTER THAT VETO WE OBTAINED PASSAGE OF THE EMERGENCY HOUSING
LEGISLATION WHICH HAS BEEN JUDICIOUSLY USED TO NURTURE THE
HOUSING RECOVERY,
-5-
OUR FOUNDING FATHERS CONSTRUCTED OUR SYSTEM OF CHECKS
AND BALANCES FOR VERY GOOD REASON -- AND NEVER BETTER
DEMONSTRATED THAN DURING 1975. AND THE PROOF IS IN THE
RECORD.
HERE WE ARE -- ONE YEAR LATER.
THE NATION AND ITS ECONOMY SURVIVED -- AND THE DELICATE
HEALTH OF THE ECONOMIC UPTURN, WHICH WE WATCHED so FRETFULLY
A YEAR AGO, HAS BECOME STRONGER AND STRONGER WITH EACH PASSING
MONTH.
IN ONE SHORT YEAR WE HAVE SEEN:
PERSONAL INCOME JUMP $83 BILLION; -- OUR GROSS NATIONAL
PRODUCT GROW BY $200 BILLION; -- RETAIL SALES INCREASE 16
PERCENT -- AUTO SALES 38 PERCENT; -- GENERAL MERCHANDISE
11 PERCENT; -- NEW FACTORY ORDERS UP $17 BILLION,
TODAY, THERE ARE THREE MILLION MORE AMERICANS WORKING
THAN ONE YEAR AGO -- IN SPITE OF A TREMENDOUS INFLUX OF
WOMEN AND YOUNG PEOPLE INTO THE LABOR MARKET. AND INFLATION
HAS BEEN MORE THAN CUT IN HALF.
-6-
IN HOUSING -- PERHAPS THE HARDEST HIT SECTOR OF OUR
ENTIRE ECONOMY -- NEW STARTS ARE UP 40 PERCENT OVER LAST
SEPTEMBER, AND 93 PERCENT OVER THE BEGINNING OF 1975.
WHAT HAVE WE LEARNED?
WE HAVE COME THIS FAR, NOT THROUGH THE MAGIC OF A
BIG FEDERAL GOVERNMENT "SAVE", BUT THROUGH THE STRONG AND
CONSISTENT GUIDING HAND OF A PRAGMATIC PRESIDENT.
AND OUR PROSPECTS FOR CONTINUED GROWTH AND PROGRESS
DEPEND ON MAINTAINING THE STEADY COURSE PRESIDENT FORD SET
WHEN HE TOOK OFFICE TWO YEARS AGO,
WHAT WORRIES ME ARE THE REPEATED CALLS FOR MORE
GOVERNMENT SPENDING PROGRAMS,
I HAVE LISTENED TO OUR OPPOSITION'S PROPOSALS THAT
WOULD ADD $100 TO $200 BILLION TO A BUDGET THAT IS ALREADY
PRODUCING A DEFICIT OF OVER $50 BILLION, BUT I HAVE NOT
HEARD HOW WE ARE TO PAY FOR THEM.
WE WILL EITHER HAVE HUGE DEFICITS OR WE WILL HAVE
HIGHER TAXES, THERE ARE NO SECRET SOURCES OF REVENUES.
-7-
THEY TELL US THEY WILL BALANCE THE BUDGET,
THEY TELL US THEY WILL FIND THE MONEY BY RAISING THE
TAXES OF THE UNDESERVING RICH. SOME CONFUSION EXISTS
WHETHER THE RICH ARE THOSE WITH INCOMES ABOVE THE MEDIAN
($14,000), THOSE ABOVE $25,000, OR THOSE ABOVE $50,000
WILL BE THE TARGET.
BUT ONLY 10 PERCENT OF FAMILIES MAKE $25,000 OR MORE
AND A FULL 40 PERCENT OF THEM DO IT WITH TWO WAGE EARNERS.
IF WE FOCUS ON $50,000 INCOMES -- THEN WE MUST BE
AWARE THAT FEWER THAN 5 PERCENT OF AMERICAN FAMILIES MAKE
$50,000 PLUS,
IF WE DOUBLE THEIR TAX, WE COULD PICK UP ABOUT $20
BILLION.
THEY SAY THEY WOULD CLOSE LOOPHOLES, $65 BILLION IN
PREFERENCES GO TO ALL TAXPAYERS, $53 BILLION GO TO PERSONS
WITH INCOMES BELOW $25,000. IF WE CLOSE ALL LOOPHOLES FOR
PERSONS MAKING $25,000 PLUS, WE COULD PICK UP $12 BILLION,
-8-
ALL OF THIS FALLS CONSIDERABLY SHORT OF THE $200
BILLION WORTH OF NEW PROGRAMS WHICH ARE OFFERED AS CURES
TO OUR NATION'S ILLS.
THIS SHOTGUN ANALYSIS REMINDS ME OF H.L. MENCKEN'S
COMMENT:
FOR EVERY HUMAN PROBLEM THERE IS A
SOLUTION THAT IS SIMPLE, NEAT AND WRONG.
DON'T BE MISLED.
THE UNVARNISHED EVIDENCE IS THAT THESE BIG SPENDING
PROGRAMS THWART NEEDED BUSINESS EXPANSION BY DRIVING UP
COSTS OF DOING BUSINESS,
THAT HURTS THE VERY PEOPLE SUCH PROGRAMS WERE SUPPOSED
TO HELP -- WITH GREATER EXPENSES, EMPLOYMENT CONTRACTION,
LAY-OFFS AND STILL ANOTHER ROUND OF UNEMPLOYMENT CHECKS
-- NOT TO MENTION OUR CITIES,
-9-
IT WORRIES ME THAT WE HEAR OUR OPPOSITION IN THIS
CAMPAIGN CALLING FOR THE FEDERAL GOVERNMENT TO SUBSIDIZE
THE BUILDING OF 2.5 MILLION HOUSING UNITS A YEAR, WE
HAVE ALREADY BEEN DOWN THAT ROAD -- DISASTEROUSLY. AND
YOU WHO ARE LEADERS OF THE CITY SHOULD LISTEN CAREFULLY,
FOR PURSUANT TO THE HOUSING AcT OF 1968 THAT SENATOR
MONDALE POINTS TO WITH PRIDE, THIS NATION SUBSIDIZED,
ANNUALLY, WITHOUT REGARD TO THE MARKET NEEDS OF PARTICULAR
AREAS, MORE THAN 2 MILLION HOUSING STARTS FOR THREE YEARS
RUNNING -- AND GENERATED A BURST OF HOUSING OVERPRODUCTION
THAT WE ARE STILL TRYING TO WORK OFF,
IN THE COURSE OF THIS PRODUCTION EXPLOSION OUR NATION
ABANDONED THOUSANDS OF SOUND, WELL-DESIGNED HOMES IN OUR
CITIES AND UNDER-UTILIZED ROADS, UTILITIES, AND SEWAGE SYSTEMS
ALREADY IN PLACE THERE, AS URBAN DWELLERS HEEDED THE PIED
PIPER CALL OF "NEW IS BETTER" AND FLED, NEIGHBORHOODS WERE
BLIGHTED WITH ROW UPON ROW OF BOARDED-UP HOUSES LEFT TO DECAY.
-10-
BUT IT WAS NOT ONLY OUR CITIES THAT SUFFERED -- OUR
HOUSING INDUSTRY -- MANAGEMENT AND LABOR -- WAS INCAPACITATED.
BECAUSE AN ARTIFICIALLY PRODUCED "BOOM" CANNOT CONTINUE
FOREVER, THE NEXT PERIOD, WHICH HIT us ABOUT TWO YEARS AGO,
WAS ONE OF EXAGGERATED CONTRACTION TO ENABLE US TO WORK-OFF
THE EXCESSIVE INVENTORIES, WITH DISASTEROUSLY HIGH LAY-OFFS
IN THE CONSTRUCTION INDUSTRY.
PRESIDENT FORD'S HOUSING POLICIES ARE DESIGNED TO
ACCOMMODATE THE LOGICAL CALL FOR REASONABLE LEVELS OF STARTS
WHILE AVOIDING THE DISASTEROUS CYCLES OF ALL OR NOTHING THAT
HAVE CHARACTERIZED THE HOUSING CONSTRUCTION INDUSTRY EVER
SINCE BIG GOVERNMENT GOT INTO THE ACT.
AND THESE HOUSING POLICIES HAVE WORKED. EVEN IF WE
FAIL TO BUILD ANOTHER HOUSE IN 1976, THIS YEAR -- RIGHT NOW
-- WILL BE THE FOURTH BEST YEAR ON RECORD FOR NEW SINGLE-
FAMILY STARTS -- CURRENTLY AT 1.3 MILLION. AND MULTI-FAMILY
STARTS, ALTHOUGH NOT so QUICK TO RECOVER, JUMPED 48 PERCENT
IN JULY AND 46 PERCENT IN AUGUST WITH EXCITING JUMPS IN
PERMITS so THAT WE HAVE EVERY REASON TO BE CONFIDENT OF THEIR
CONTINUED GAIN,
-11-
THE DECIDING FACTOR IN ANY POLICY DECISION, AT ANY LEVEL
OF GOVERNMENT, IS NOT HOW COMPASSIONATE OR SENSITIVE IT IS
SAID TO BE, BUT HOW WELL IT WILL IN FACT WORK.
SINCE THE START OF HIS ADMINISTRATION TWO YEARS AGO,
PRESIDENT FORD HAS TAKEN STEPS TO IMPROVE THE WORKINGS OF
GOVERNMENT BY IMPROVING THE FOCUS AND DELIVERY OF FEDERAL
ASSISTANCE TO OUR STATES AND URBAN CENTERS,
HE HAS DIRECTLY ATTACKED THE DELAYS, THE RED-TAPE, AND
THE REGULATION MAZE so DISHEARTENING TO THE INNOVATIVE SPIRIT
THAT IS THE SOUL OF THE FREE ENTERPRISE SYSTEM. AND HE HAS
DONE IT IN TWO SHORT YEARS, ASSEMBLING HIS WINNING TEAM AT
THE LOWEST POINT IN THE POLITICAL HISTORY OF OUR COUNTRY,
INDEED, HE HAS SET THE TONE FOR A NEW NATIONAL AWARENESS
THAT AMERICA'S WISDOM DOES NOT RESIDE ENTIRELY IN THE CORRIDORS
OF CONGRESS -- THAT OUR STATES AND OUR CITIES ACROSS OUR
DIVERSE LAND VERY OFTEN CAN DEVISE BETTER SOLUTIONS FOR THEIR
INDIVIDUAL PROBLEMS THAN CAN CONGRESS WHICH DEALS IN NATIONAL
STATISTICS AND DEVISES GRAND SOLUTIONS THAT TOO FREQUENTLY
MISS THE MARK,
-12-
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 STUDY OF THE AMASSED DATA QUICKLY CONFIRMED
WHAT WE ALREADY SUSPECTED.
OVER THE PAST HALF-CENTURY, SUCCEEDING CONGRESSSES HAVE
ENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES
THE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY
FOR A SAN DIEGO, A TOLEDO, A SAN JOSE, OR A COLUMBUS,
THOSE WHO TALK ABOUT "MANAGING THE BUREAUCRACY" OR
"BRINGING WASHINGTON UNDER CONTROL" HAD BEST START WITH
THAT FACT-OF-LIFE IN MIND.
-13-
I HAVE PERSONALLY REVIEWED 103 FEDERALLY-FUNDED PROGRAMS
WHICH PRIMARILY AFFECT LOCAL COMMUNITIES 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,
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,
I DO NOT WISH TO FLATTER THIS AUDIENCE BY POINTING TO
THE SUPERIORITY OF LOCAL LEADERSHIP OVER WASHINGTON PLANNERS
-- BUT I BELIEVE A BRIEF RECAP OF THE HUD EXPERIENCE ILLUSTRATES
THE ADVANTAGE TO THE CITY, TO THE STATE, TO THE FEDERAL
GOVERNMENT, AND, NOT LEAST OF ALL, TO THE TAXPAYERS, OF GIVING
BROAD DISCRETION WITH FEDERAL FUNDING.
-14-
BEFORE PRESIDENT FORD SIGNED THE NEW HOUSING AND
COMMUNITY DEVELOPMENT AcT INTO LAW ON AUGUST 22, 1974, HUD
HAD 7 CATEGORICAL GRANT PROGRAMS THAT ARE NOW CONSOLIDATED
UNDER OUR BLOCK GRANT PROGRAM -- EACH HAD ITS OWN SET OF
REQUIREMENTS, REGULATIONS, AND TIMETABLES, WATER AND SEWERS;
URBAN RENEWAL; OPEN SPACE FOR PARK DEVELOPMENT -- ALL OF
THEM WELL-MEANING BUT WITHOUT ANY ALLOWANCE FOR GREATER
COMMUNITY NEEDS THAT MIGHT LIE OUTSIDE OF THE STRICT
SPECIFICATIONS OF THE PARTICULAR CATEGORIES,
To MAKE SENSE OUT OF THIS ABSURDITY, THIS ADMINISTRATION
DEVELOPED THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.
UNDER THE PROGRAM, LARGE CITIES AND URBAN COUNTIES RECEIVE
UNFETTERED FUNDS WHICH THEY SPEND, FOR THEIR LOCALITIES'
MOST URGENT COMMUNITY DEVELOPMENT NEEDS,
REGULATIONS HAVE BEEN CUT FROM 2600 PAGES TO ABOUT 100
PAGES; APPLICATIONS FROM 1400 PAGES TO ABOUT 50 PAGES; AND
REVIEW TIME FROM AN AVERAGE OF 26 MONTHS TO AN AVERAGE OF
45 DAYS, As COMPARED TO 1967, WE ARE NOW PROVIDING TWICE
AS MUCH FUNDING TO TWICE AS MANY UNITS OF GOVERNMENT -- AND
WE ARE DOING IT WITH FEWER HUD EMPLOYEES,
-15-
BUT, MOST IMPORTANT, WE ARE PROVIDING LOCAL COMMUNITIES
WITH VITALLY NEEDED FUNDS -- ON TIME AND IN TIME.
IT IS MY STRONG BELIEF THAT OUR CITIES CAN, AND WILL,
MOVE FORWARD IF CONGRESS PERMITS THE FEDERAL ESTABLISHMENT
TO SHIFT EMPHASIS FROM CATEGORICAL THINKING TO BLOCK GRANT
PLANNING.
THEN FUNDING IS PUT BEYOND THE NARROW PERSPECTIVE OF
SOME "EXPERT" IN WASHINGTON, WHO CANNOT POSSIBLY GRASP THE
INDIVIDUAL DIFFERENCES OF THE THOUSANDS OF LOCALITIES ACROSS
OUR 3-1/2 MILLION SQUARE MILES OF COUNTRY,
THE EVIDENCE, IN FACT, IS so STRONG -- THAT I STRONGLY
RECOMMEND 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,
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 AFFECTED,
-16-
THIRD, CITIZEN PARTICIPATION SHOULD BE A RULE RATHER
THAN AN EXCEPTION IN FEDERAL GRANT PROGRAMS, WHICH WILL
INCREASE GOVERNMENTAL ACCOUNTABILITY, THE CORNERSTONE OF
OUR DEMOCRACY,
AND, FINALLY, THE FEASIBILITY OF MULTI-YEAR FUNDING
ALSO SHOULD BE CONSIDERED WHEREVER POSSIBLE, 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 BELIEVE THAT IF THESE FOUR PRINCIPLES BECAME THE
GUIDING PRINCIPLES OF FUTURE FEDERAL PROGRAM PLANNING,
YOUR CONSTITUENCIES WOULD FARE A LOT BETTER.
THEY ENHANCE THE SPECIAL CAPABILITIES OF EACH LEVEL OF
GOVERNMENT AND MAKE EACH LEVEL MORE RESPONSIVE AND EFFICIENT.
FOR, ALTHOUGH LOCAL GOVERNMENTS ARE THE BEST SITUATED
TO SOLVE LOCAL PROBLEMS, THEY ARE THE LEAST CAPABLE OF
GENERATING SIGNIFICANT AMOUNTS OF REVENUE, EIGHTY-FIVE
PERCENT OF LOCAL REVENUES COME FROM PROPERTY TAXES, AND WE
KNOW THAT OVER-TAXATION OF PROPERTY ONLY SERVES TO HALT
LAND DEVELOPMENT, OR ENCOURAGE DISINVESTMENT.
-17-
AND, WHILE IT IS THE FEDERAL GOVERNMENT THAT HAS THE
MOST EFFICIENT MEANS OF GENERATING REVENUES AND SETTING
NATIONAL GOALS, IT IS THE STATE GOVERNMENT THAT BRINGS
REGIONALISM TO GOVERNMENTAL DECISION-MAKING.
IN PLANNING FOR THIS NATION'S URBAN FUTURE WE CANNOT
IGNORE THE NEED TO INTEGRATE THE POLITICAL AND ECONOMIC
DESTINIES OF OUR CITIES WITH THEIR SUBURBS, ONLY THE STATE
CAN ACCOMPLISH THAT IMPORTANT FEAT OF POLITICAL-PHYSICAL
CONSOLIDATION.
THE STATE LEGISLATURE OF MINNESOTA, FOR EXAMPLE, MADE
POSSIBLE THE MINNEAPOLIS-ST. PAUL METROPOLITAN COUNCIL,
WHICH IS CHARGED WITH THE COORDINATION OF COMMUNITY AFFAIRS
IN THE TWIN-CITY AREA.
AND IT IS BY MINNESOTA STATE LAW, THAT THE PROPERTY TAX
BENEFITS FROM NEW COMMERCE AND INDUSTRY IN THE METROPOLITAN
AREA ARE DISTRIBUTED AMONG ALL THE COMMUNITIES IN THAT LOCALITY,
WHERE WE HAVE ACHIEVED A REAL INTERGOVERNMENTAL PARTNERSHIP
-- AS WE HAVE IN SOME AREAS BASED UPON THE SHEER INGENUITY OF
PEOPLE AT EACH LEVEL -- WE HAVE SEEN EXCITING PROGRESS,
-18-
THAT THE WIND OF CHANGE HAS BEGUN TO BLOW SINCE THE
BLOCK GRANT APPROACH WAS EMPHASIZED IN 1974 WAS CLEARLY
APPARENT AS OUR PRESIDENT'S COMMITTEE TRAVELLED TO AND
STUDIED CITIES IN ALL REGIONS OF THE COUNTRY:
ENERGIZED DOWNTOWN AREAS SUPPORTED BY NEW CIVIC CENTERS
AND RENOVATED LANDMARKS; CONVENTION CENTER COMPLEXES;
RECLAMATION OF HARBORS AND RIVER BANKS; THE REBIRTH OF OLD
FINANCIAL DISTRICTS; FLOURISHING, REHABILITATED NEIGHBORHOODS
-- LOW AND MODERATE INCOME, MIDDLE-CLASS, ETHNIC, WEALTHY --
EACH CONTRIBUTING TO THE ECONOMIC HEALTH AND CULTURAL
DIVERSITY OF ITS CITY,
THESE TRIUMPHS OF NEIGHBORHOOD REVITALIZATION IN ALL
PARTS OF THE COUNTRY -- COUPLED WITH DOWNTOWN REDEVELOPMENT
MASTERPIECES -- HAVE IN COMMON ONE ESSENTIAL INGREDIENT OF
SUCCESS:
ALL OF THEM HAVE COME ABOUT THROUGH LOCAL INITIATIVE,
LOCAL PLANNING AND LOCAL INVESTMENT. IN EACH CASE, THE
PRINCIPAL ROLE OF THE STATE AND THE FEDERAL GOVERNMENT HAS
BEEN SUPPORTIVE, NOT PRE-EMPTIVE,
-19-
BUT THIS SORT OF INNOVATION WILL NOT CONTINUE IF WE
HAVE A REOCCURRENCE OF DOUBLE-DIGIT INFLATION THAT CUT THE
FLOW OF URBAN REVENUES.
THE ONLY SURE PRESCRIPTION FOR CREATIVE INTERGOVERNMENTAL
WORKINGS IS THE CONTINUATION OF THE STEADY PROGRESS THAT
PRESIDENT FORD HAS MADE IN REDUCING INFLATION AND INCREASING
EMPLOYMENT.
WE SIMPLY CANNOT IGNORE THE LESSON FOR WHICH WE PAID
so DEARLY IN THE 1960's -- THAT NO MATTER HOW MUCH WE MAY
WILL IT -- A "SOCIETY" IS NOT SUDDENLY MADE "GREAT" THROUGH
WELL-MEANING PROGRAMS WHOSE SOLE SOURCE OF SUSTENANCE IS
THE FEDERAL EXCHEQUER.
WE KNOW THAT OUR PRIVATE ECONOMY, WHICH SUPPORTS OUR
CITIES, CANNOT SUSTAIN THE AWESOME FEDERAL DEFICIT OF TODAY'S
MAGNITUDE WITHOUT THE EROSION OF THE VERY FINANCIAL RESOURCES
THAT ARE VITAL TO THE GROWTH AND PRODUCTIVITY OF OUR FREE
ENTERPRISES, WHICH ARE THE SOURCE OF FIVE OUT OF SIX JOBS --
WHICH ARE IN TURN THE SOURCE OF OUR CITIES' SUSTENANCE.
PRESIDENT FORD HAS HELD THE LINE IN EXPENDITURES, AND
IN so DOING HAS CREATED THE LARGEST NUMBER OF JOBS IN OUR
NATION'S HISTORY,
-20-
IF WE PERSERVERE IN THE OLD MYTH THAT OUR CITIES CAN
BE RUN FROM WASHINGTON, WITH A NATIONAL PROGRAM FOR THIS
PROBLEM AND A NATIONAL PROGRAM FOR THAT PROBLEM, ALL OF OUR
CITIES, NOT JUST THE OLDER ONES, FACE A VERY BLEAK TOMORROW.
AND "INTERGOVERNMENTAL RELATIONS" WILL BECOME JUST ANOTHER
GOVERNMENT PROJECT THAT FAILED -- EXPENSIVELY.
BUT, I SIMPLY TO NOT BELIEVE THE PEOPLE -- OR THE
LEADERSHIP -- IN OUR CITIES ARE GOING TO ALLOW IT TO FAIL.
AND THIS GREAT CONFERENCE OF THE CALIFORNIA LEAGUE,
SURELY, IS AN ENTHUSIASTIC TESTIMONY TO MY CONFIDENCE.
THANK YOU,