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And friends show CONFIDENTIAL SU - 11th Draft 1/22/71 - 9 The time has come to reverse the flow of power and resources from the States and communities to Washington, and start power and resources flowing back from Washington to the Statesand communities and most important, to the people, all across America. B The time has come for a new partnership between the Federal haw Government and the States and localities in which wes give responsibility To achieve This Soal,) to The states and localitize and I propose to the Congress tonight that we enact a plan of revenue sharing historic in scope and bold in concept. also The resource to mut That All across America today, States and cities are confronted with responsi- a financial crisis. Some already have been cutting back on essential bately. services - - for example, just recently San Diego and Cleveland cut back on trash collections; Los Angeles had to reduce its force of water and power workers. Most are caught between the prospects of bank- ruptcy on the one hand and adding to an already crushing tax burden on the other. As one indication of the rising costs of local government, I dis- covered the other day that my home town of Whittier, California -- with a population of only 67,000 -- has a budget for 1971 bigger than the entire Federal budget in 1791. Now the time has come to take a new direction, and once again to introduce a new and more creative balance in our approach to government. CONFIDENTIAL

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    "ocrText": "And\nfriends\nshow\nCONFIDENTIAL\nSU - 11th Draft\n1/22/71\n- 9\nThe time has come to reverse the flow of power and resources\nfrom the States and communities to Washington, and start power and\nresources flowing back from Washington to the Statesand communities\nand most important, to the people, all across America.\nB\nThe time has come for a new partnership between the Federal\nhaw\nGovernment and the States and localities in which wes give responsibility\nTo achieve This Soal,) to The states and localitize and\nI propose to the Congress tonight that we enact a plan of revenue\nsharing historic in scope and bold in concept.\nalso The resource to\nmut That\nAll across America today, States and cities are confronted with responsi-\na financial crisis. Some already have been cutting back on essential bately.\nservices - - for example, just recently San Diego and Cleveland cut\nback on trash collections; Los Angeles had to reduce its force of water\nand power workers. Most are caught between the prospects of bank-\nruptcy on the one hand and adding to an already crushing tax burden\non the other.\nAs one indication of the rising costs of local government, I dis-\ncovered the other day that my home town of Whittier, California -- with\na population of only 67,000 -- has a budget for 1971 bigger than the entire\nFederal budget in 1791.\nNow the time has come to take a new direction, and once again to\nintroduce a new and more creative balance in our approach to government.\nCONFIDENTIAL"
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