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10/20/76 - Commonwealth Club of San Francisco
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This file contains material relating to Community Development Block Grant Programs.
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Carla A. Hills Speeches
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The original documents are located in Box 2, folder "10/20/76 - Commonwealth Club of
San Francisco" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
FINAL
COMMONWEALTH CLUB OF SAN FRANCISCO
OCTOBER 20, 1976
THERE IS NOTHING MORE INVIGORATING TO A DISPLACED
NATIVE CALIFORNIAN THAN AN AIR-VIEW OF THE GOLDEN GATE
BRIDGE.
AND WHEN THE PLANE LETS DOWN OVER YOUR BEAUTIFUL
CITY I CAN ONLY THINK THAT TONY BENNETT WAS RIGHT.
HOWEVER -- SINCE I AM A MEMBER OF THE FORD ADMINISTRATION,
AND THE PRESIDENTIAL ELECTION IS JUST 13 DAYS AWAY, YOU MIGHT
THINK MY ENTHUSIASM IN BEING HERE IN SPITE OF MY LOVE FOR
SAN FRANCISCO IS SOMEWHAT RELATED.
WELL -- YOU ARE RIGHT! I USE EVERY OCCASION I CAN TO
TELL WHAT A FINE JOB I KNOW THAT PRESIDENT FORD IS DOING.
THE OPPOSITION HAS TRIED TO PUT DOWN THE PRESIDENT'S
LEADERSHIP CAPACITY AND ON THAT ISSUE HE IS STRONG AND I
DO NOT HESITATE TO MEET IT STRAIGHT ON,
THE FACT IS THAT PRESIDENT FORD HAS BEEN TAKING BETTER
CARE OF THIS NATION'S AFFAIRS THAN ANY PRESIDENT IN RECENT
HISTORY,
GERALD
-2-
ON ASSUMING OFFICE 26 MONTHS AGO, HE LED THIS NATION
THROUGH ITS MOST SERIOUS CONSTITUTIONAL CRISIS SINCE THE
CIVIL WAR AND THEN PROCEEDED TO RESTORE NATIONAL CONFIDENCE
IN THE INSTITUTIONS WHICH DISTINGUISH OUR FORM OF GOVERNMENT
FROM THOSE ENDURED BY A MAJORITY OF THE WORLD'S PEOPLE.
HIS STRONG LEADERSHIP OVER THE PAST TWO YEARS HAS
RESTORED THE PRESTIGE OF AMERICA AMONG THE COUNTRIES OF
THE WORLD -- WHILE MAINTAINING PEACE, ENHANCING GOOD WILL,
AND STANDING FIRM ON THE NEED FOR CONTINUED NATIONAL STRENGTH.
IF ANYTHING CAME THROUGH TO THE AMERICAN PEOPLE IN
THE DEBATE ON FOREIGN AFFAIRS -- IT WAS THE UNARGUABLE
FACT THAT THERE IS NOT ONE SINGLE AMERICAN ON A BATTLEGROUND
ANYWHERE ON THIS EARTH!
BUT, MY SUBJECT, TODAY, INVOLVES NEITHER WAR NOR PEACE.
INSTEAD, I WANT TO TALK ABOUT THE ECONOMY -- PARTICULARLY
AS IT APPLIES TO HOUSING AND THE INTER-WORKINGS OF GOVERNMENT.
AND THE BEST WAY TO START IS BY TAKING STOCK.
WHERE WERE WE A YEAR AGO? WHAT HAVE WE DONE ABOUT IT?
WHAT HAVE WE LEARNED?
-3-
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 AN UNCEASING INCREASE
IN THE COST OF EVERYTHING.
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,
ON CAPITOL HILL, LABOR AND POLITICAL LEADERS 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,
-4-
WITH THE SMALLEST PARTY SUPPORT IN CONGRESS IN OVER
50 YEARS, AND IN THE FACE OF THE SO-CALLED VETO PROOF CONGRESS,
THE PRESIDENT HAD THE LEADERSHIP CAPACITY TO HOLD HIS SMALL
PARTY TOGETHER AND TO ATTRACT A SUFFICIENT NUMBER OF DEMOCRATS
TO BLOCK THE VAST MAJORITY OF THESE ILL-CONCEIVED MEASURES
AND SAVE THE TAXPAYERS NEARLY $10 BILLION IN A YEAR ALREADY
PRODUCING A DEFICIT OVER $50 BILLION.
YESTERDAY, BEFORE THE CALIFORNIA LEAGUE OF CITIES,
SENATOR MONDALE CRITICIZED THE PRESIDENT FOR VETOING THE
HOUSING Act OF 1975, BUT, I WAS THERE AND I WELL RECALL
THIS BILL -- AN ILL-CONCEIVED MULTI-BILLION DOLLAR MEASURE
WHICH THE RESPECTED CHAIRMAN OF THE HOUSE BANKING COMMITTEE,
A DEMOCRAT FROM OHIO, LUD ASHLEY, TERMED "A TURKEY THAT
COULDN'T FLY".
AND, THE SENATOR NEGLECTED TO MENTION TO THE CALIFORNIA
LEAGUE THAT WITHIN THREE DAYS AFTER THE VETO, THE ADMINISTRATION
SECURED, WITH OVERWHELMING BIPARTISAN SUPPORT, PASSAGE OF THE
EMERGENCY HOUSING AcT, WHICH IT HAS USED TO NURTURE THE RECOVERY
IN THE HOUSING INDUSTRY -- NOW FIRMLY UNDERWAY.
-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 A YEAR
AGO, 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,
TODAY -- ACROSS THE BOARD -- WE ARE RIGHT ON TARGET
WITH OUR FORECASTS MADE AT THE BEGINNING OF THE YEAR.
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
WOULD PAY FOR THEM.
-7-
WE WILL EITHER HAVE HUGE DEFICITS WITH ACCOMPANYING
INFLATION OR WE WILL HAVE MUCH HIGHER TAXES. THERE ARE NO
SECRET SOURCES OF REVENUES,
SINCE THEY PROMISE TO BALANCE THE BUDGET, THEY MUST
TAX. THEY ALSO PROMISE TO TAX ONLY THE UNDESERVING RICH,
AND THERE HAS BEEN SOME CONFUSION AS TO WHETHER THE RICH
TO BE TARGETTED ARE THOSE WITH INCOMES ABOVE THE $14,000
MEDIAN, THOSE WITH INCOMES ABOVE $25,000, OR MORE RECENTLY,
THOSE WITH INCOMES ABOVE $50,000.
BUT, WE SHOULD NOT BE CONFUSED ABOUT THE TAX IMPACT.
ONLY 10 PERCENT OF THE FAMILIES MAKE $25,000 OR MORE,
AND A FULL 40 PERCENT OF THEM DO IT WITH TWO WAGE EARNERS.
THEY ARE ALREADY PAYING $41 BILLION OUT OF THE $93 BILLION
COLLECTED.
AND, FEWER THAN 5 PERCENT OF AMERICAN FAMILIES MAKE
$50,000 OR MORE, IF WE DOUBLE THEIR TAX, WE WOULD ONLY
PICK UP ABOUT $20 BILLION IN ADDITIONAL REVENUES,
PLUG THE LOOPHOLES, THEY SAY, FOR THE RICH.
-8-
OF THE $65 BILLION IN PREFERENCES THAT GO TO ALL TAXPAYERS
-- $53 BILLION GOES TO PERSONS WITH INCOMES BELOW $25,000, IN
SUCH FORMS AS THE MINIMUM STANDARD DEDUCTIONS, DEDUCTIONS OF
LOCAL AND STATE TAXES AND INTEREST ON MORTGAGES, IF WE CLOSE
ALL LOOPHOLES FOR PERSONS WITH INCOMES OVER $50,000, WE WOULD
ONLY PICK UP ABOUT $6 BILLION IN ADDED REVENUES.
BUT ALL OF THESE MEASURES FALL CONSIDERABLY SHORT OF
PAYING FOR THE PROMISED NEW PROGRAMS OFFERED AS CURES TO OUR
DOMESTIC ILLS.
IT REMINDS ME OF H.L. MENCKEN'S COMMENT:
"FOR EVERY HUMAN PROBLEM, THERE IS A
SOLUTION THAT IS SIMPLE, NEAT AND WRONG."
AND, 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.
-9-
CERTAINLY, THAT DOES NOT MEAN WE CAN EVER IGNORE THE
GREAT HUMAN PROBLEMS -- SUCH AS CATASTROPHIC ILLNESS AND
UNEMPLOYMENT. BUT, PRESIDENT FORD'S SOLUTION DOES NOT
CALL FOR A DON QUIXOTE CHARGE OF MASSIVE FEDERAL SPENDING
TO WIPE OUT THESE ANCIENT ENEMIES.
IN HEALTH INSURANCE, FOR EXAMPLE, THE PRESIDENT PROPOSES
NOT TO FEDERALIZE ALL OF THE HEALTH CARE, BUT, INSTEAD, TO
INSURE THAT ELDERLY PERSONS WITH MAJOR MEDICAL EXPENSES WILL
NOT BE FINANCIALLY DESTROYED BY THOSE COSTS.
AND, THE PRESIDENT'S CURE FOR UNEMPLOYMENT IS THE BEST
REMEDY KNOWN TO A DEMOCRATIC SOCIETY: TO ESTABLISH A STABLE
ECONOMY IN WHICH EXPANDING BUSINESS AND INDUSTRY, CREATE REAL
AND LASTING JOBS AND A GROWING DEMAND FOR BLUE AND WHITE
COLLAR WORKERS AT EVERY INCOME LEVEL.
IN THE HOUSING AREA I AM VERY CONCERNED ABOUT OUR
OPPOSITION'S CALL FOR THE FEDERAL GOVERNMENT TO SUBSIDIZE
THE BUILDING OF 2-1/2 MILLION HOUSING UNITS A YEAR.
-10-
THE FACT IS THAT THE PROBLEMS WE HAVE SUFFERED IN
HOUSING OVER THE PAST TWO YEARS WERE CAUSED IN LARGE MEASURE
BY THAT VERY PHILOSOPHY WHICH WAS MANDATED BY THE HOUSING
AcT OF 1968.
FOR PURSUANT TO THAT AcT, THIS NATION SUBSIDIZED,
ANNUALLY, MORE THAN 2 MILLION HOUSING STARTS FOR THREE YEARS
RUNNING -- AND GENERATED A BURST OF HOUSING OVERPRODUCTION
THAT WE ARE JUST NOW WORKING 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 BUYERS HEEDED THE PIED
PIPER CALL OF "NEW IS BETTER". !!EIGHBORHOODS ALL ACROSS
THIS NATION WERE BLIGHTED WITH ROW UPON ROW OF BOARDED-UP
HOUSES LEFT TO DECAY,
BUT IT WAS NOT ONLY OUR CITIES THAT SUFFERED -- OUR
HOUSING INDUSTRY 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 EXCESSIVE INVENTORIES
WITH THE RESULTING LAY-OFFS IN THE CONSTRUCTION INDUSTRY.
-11-
THE PRESIDENT'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 HIS 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, AND MULTI-FAMILY STARTS, ALTHOUGH NOT SO QUICK TO
RECOVER, JUMPED 48 PERCENT IN JULY AND 46 PERCENT IN AUGUST,
WITH SUBSTANTIAL JUMPS IN PERMITS so THAT WE HAVE EVERY
REASON TO BE CONFIDENT OF THEIR CONTINUED GAIN,
RATHER THAN RE-CREATE MASSIVE SUBSIDY PROGRAMS TO
EXPAND HOMEOWNERSHIP OPPORTUNITIES, WHICH TOO OFTEN FORCE
TAXPAYERS TO SUBSIDIZE THEIR ECONOMIC PEERS, THE PRESIDENT
HAS SUPPORTED THREE INITIATIVES WHICH HAVE BEEN UNDER STUDY
IN MY DEPARTMENT FOR SEVERAL MONTHS.
-12-
THE FIRST IS TO LOWER DOWNPAYMENTS FOR THOSE WHO BUY
HOMES WITH FHA INSURANCE. FOR THE TYPICALLY-PRICED NEW
HOME, THE PRESIDENT'S INITIATIVE WILL CUT THE DOWNPAYMENT
IN HALF, THUS HELPING FAMILIES -- PARTICULARLY YOUNG FAMILIES
WHO ARE BUYING THEIR FIRST HOMES -- TO GAIN THE PRACTICAL
AND PERSONAL BENEFITS OF HOMEOWNERSHIP.
THE SECOND IS TO EXPAND FHA MORTGAGE LIMITS TO COVER
ABOUT 87 PERCENT OF SALES.
AND THE THIRD IS TO PROVIDE A FEDERAL GUARANTEE OF
A GUADUATED PAYMENT MORTGAGE, WHICH ALLOWS YOUNG FAMILIES
TO REDUCE THEIR MONTHLY PAYMENTS IN THE EARLY YEARS WHEN
THEIR INCOMES ARE LIKELY TO BE LOWER. THE PAYMENTS INCREASE
MODERATELY IN LATER YEARS WHEN THEIR INCOMES ARE EXPECTED
TO RISE.
IN THE 1930's AND 40's THE FEDERAL GOVERNMENT REVOLUTIONIZED
HOME PURCHASING BY INTRODUCING THE 30-YEAR FULLY-AMORTIZED
LOAN WITH A 10 TO 20 PERCENT DOWNPAYMENT. You MAY RECALL
THAT IN 1930, THE TRADITIONAL MORTGAGE WAS FOR 5-YEARS WITH
A 50 PERCENT DOWNPAYMENT.
-13-
UNDER THE PRESIDENT'S GRADUATED PAYMENT PROGRAM, WE
CAN CHANGE THE MARKET IN A SIMILAR WAY IN THE 1970's. THESE
PROPOSALS ARE NOT BASED ON SUBSIDIES PAID FOR WITH TAX
DOLLARS -- THEY ARE INNOVATIVE METHODS FOR HELPING FAMILIES
TO PAY FOR THEIR OWN HOMES.
BUT NO AMOUNT OF INNOVATION WILL WORK IF THE AMERICAN
FAMILY DOES NOT HAVE THE SPENDABLE INCOME TO MAKE THE
DOWNPAYMENT AND TO PAY THE MORTGAGE, UTILITIES AND MAINTENANCE.
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.
-14-
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,
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 CONGRESSES HAVE
ENACTED so MANY SEPARATE CATEGORICAL PROGRAMS THAT IT DEFIES
THE INGENUITY OF ANYBODY TO DEVELOP A COORDINATED STRATEGY
FOR A SAN DIEGO, A SAN FRANCISCO, OR A SAN JOSE,
-15-
THOSE WHO TALK ABOUT "MANAGING THE BUREAUCRACY" OR
"BRINGING WASHINGTON UNDER CONTROL" HAD BEST START WITH
THAT FACT-OF-LIFE IN MIND.
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.
-16-
I DO NOT WISH TO FLATTER A LOCAL 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.
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,
-17-
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,
BUT, MORE 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 WILL PERMIT THE SHIFT IN 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 HAVE
SUGGESTED THAT A FORWARD-LOOKING APPROACH TO FEDERAL GRANT
PROGRAMS SHOULD BUILD ON FOUR PRINCIPLES:
-18-
FIRST, WE SHOULD PREFER BLOCK GRANTS TO CATEGORICALS
FOR ALL OF 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,
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 THE
SPECIAL CAPABILITIES OF EACH LEVEL OF GOVERNMENT WOULD BE
ENHANCED.
-20-
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:
WE HAVE SEEN 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.
-21-
BUT THIS SORT OF INNOVATION WILL NOT CONTINUE IF WE
HAVE A REOCCURRENCE OF DOUBLE DIGIT INFLATION.
THE ONLY SURE PRESCRIPTION FOR CONTINUED CREATIVE
INTERGOVERNMENTAL WORKINGS IS THE CONTINUATION OF THE STEADY
GAINS WE HAVE MADE OVER THE PAST 18 MONTHS IN REDUCING
INFLATION AND INCREASING EMPLOYMENT THROUGH THE ARTFUL
STIMULATION OF THE PRIVATE SECTOR,
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 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 IN TURN ARE
THE CITIES' SOURCE OF 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,
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ONE OF THE GREAT REASONS FOR HIS SUCCESS IS THAT
HE REALLY KNOWS WASHINGTON AND HE KNOWS HOW TO MAKE IT
WORK FOR THE NATION.
AND THIS IS WHY I HOPE AND TRUST THAT HISTORY WILL
RECORD A SMASHING VICTORY FOR PRESIDENT FORD IN THE GOLDEN
STATE.
THANK YOU.