Small cities : how can the Federal and state governments respond to their diverse needs? together with additional views ...


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Small cities : how can the Federal and state governments respond to their diverse needs? together with additional views : report
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vi, 37 p. : ; 24 cm.
United States -- Congress. -- House. -- Committee on Banking, Finance, and Urban Affairs. -- Subcommittee on the City
U.S. Govt. Print. Off.
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Cities and towns -- United States   ( lcsh )
City planning -- United States   ( lcsh )
Urban policy -- United States   ( lcsh )
bibliography   ( marcgt )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Includes bibliographical references.
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Also available in electronic format.
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At head of title: Subcommittee print.
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Aug. 1978.
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CIS Microfiche Accession Numbers: CIS 78 H242-11
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by the Subcommittee on the City of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, 95th Congress, second session.

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Full Text




95th Congrees, Second Semsion

'ii ii ''iiii~ii i ,, ,i ", ii i~i J~ii .. .. .

WILS MOBORHD, Keutueky GRY 3EtW, ihia





AUUS 31,198.
ToMmeso h omte nBnig iac n ra
Affairs: I
Trnmte eeifrueb h ulBnig iacn
Urba Afaraomte sarpotb h ucmitet .t on SmalCtie; o Ca th Federal ..... Stt Govrnmnt Respond to Thi..vreNed?.Tesbcm ite.eogie.ta .t
cocr sfralcte@ag ad mJ-n htteneso ml

I. Itroucton -------------------1
A. Cmplmenaryreltioshi of arg an smU ctie ----- 1 B. Dfinng smal ciies)- ---------------2
C. Ntur andscoe ofheaing- ; ------- -- --------3
D. T reeintoducoryrecmmedatins --------------- 4

Recmmedaton o. : Fderl pogrms houd b d 4

signd o redsiged to povie te flxiblit
reqire t met te-divrseneds f sal ciies-- 4
Reco menatio No- 2: Fedral dmiistrti4

struturs soul be eoranied o prvid grate
respnsienes t thenees o smll ctie -------7

- 17-II. mal cites nd alaned rowh poicy--7

A. Mvin toard alacedgroth wthot apoliy------- 9

B.Oiialgasofblnedgo t plc ---------


VI. Role of non-Federal agencies in the delivery of Federal assistanee- 20 A. The multiplicity of regional 20
Recommendation No. 9: The executive branch should rationalize the system of substate agencies encouraged by Federal law and regulations -------------- 21
Recommendation No. 10: Prefdrence should be given to those subState agencies which are politically responsible to the people they serve -------------- 21
Recommendation No. 11: Emphasis should be placed on the role of regional agencies in providing technical assistance -------------------------------------- 21
B. Role of State 21
1. Key role of State governments in eftetiveness of
local 21
2. Governors' views on the need for greatet State
3. Federal efforts to provide greater State role 23
4. President Carter's proposal for increasing involvement of State government--------------------- 23
Recommendation No. 12: Legislation similar in purpose and scope to H.R. 12893, "The State Community Conservation and Development Act" should be adopted ------------------- 24
VIL Executive branch efforts to improve delivery of federal services to small 24
A. White House studies ---------------------------------- 24
B. White House Conference on Balanced Growth------------ 26
C. Department of Housing and Urban Development---- 26
D. Department of Agriculture ----------------------------- 28
E. Interagency 29
F. Congressional 29
Recommendation No. 13: Legislation proposing to redistribute Federal functions for servicing nonmetropolitan areas should be deferred until current studies and reorganizations are completed and evaluated-- 30 VIII. Helpt! srimall cities help themselves --------------- 30
Opportunities for local 30
B. The paxticular need for improved land use p#Aterns ------- 30 IX. mall cities and their capacity to, govern ------------------------- 32
A. Need for technical 32
Recommendation No. 14: A major Federal effort should be mounted to upgradeonal I city capacitya t problemsolving --------------------- i - - - - 7 ------ 32
B. Appropriate technology ------------------- 33
Recommendation No. 15; Yederal assistance programs should provide incentives for innovative. and appropriate technologies, particularly *a thety apply to nonmetropolitan areas.------_: ------ 33
C. Jurisdictional problems of sm^H cities,. 33
Recommendation No. 16; Federal programs shoul& require at least a good-faith effort tgeonsolidate Imml jurisdictions so asto achieve greater efficiency !a the useof"Ovidlable Federal 34
Additional views of Congressman Richard, Kelly-- 35

LaInrerctei isathi t

The Sboommt thbCiitetebie's conc e ei ino olely e recommendations othprbeons ltl cities. 17eeryepaiso

facehe ain prolem oftheir large counterparts and not ife quenty Ii -th techicaldki1s -and instittutions.(to deal with tem Thee aso M ben oncrnthat the Federal Government providing suffcien asistace o thsanaller cities. Ther is coplemntsy relationship between the problemso larg an, Sallcite~la rlationship of ten af eded by -federalpo
mg- hpeiod follown World War IH throe mid-9G0';: majr prble of the lrecentral cities was, te e migatin~o unkiled orers from nonmetropolitan areas;, hs workrs e'redislacebytoe increan mechanization of agrxaltre the debne coal rodut and ah d ecay of the economies of ml cali~ su ted y thge atvities. By the mid-1960's a reverse itr actin hd gn t deelo. Freed by new teichnologiesin commui cafonsandtravoratin both heavily supported by Federal fuds 11hd t str W o moe m-ny of its plants from central cities t< or remote~~~~ lctin--eutyto the suburbsbut shnost as frequnl tosmalle pites i nonetrpolitan areas. Re kiiig ti'sintrd>endence, the subcommittee undertoo speci-l set f h *mall. cities. The objective was to idetf
probein an't6evaluate the effectiveness with wbh h man l~er of Ageiica government -are dealing with those problm

kaily nfhbpl ifg- ~tthese hearings it became obvious tba her woulbe dfficlty n islvin ga precise rdafiniion of small fis 01- tem a, A 11. its under an upper population'limi 13
046 r'dbiiaber of ribasns. Under various pro4r~s
b~en-&faed as haviin~g maximm populatios:o 004' 10 00 50,00,20,00, and. 10,000. Furthermore, the s
W" & .es hearing should not be concerned wt patons tait are clearly appendaso i h", -1 iet .. ities, wtever their poulation, < 1fthdfSlh-"t tvrhce'
besand resoure than the relat

the subcommittee arrived at the followingwokndeitonfa small city:
1. It was a cit substantially remote fromacnrlcthvn its. own inusril commercial,. and, enituabs ~l oeie sdeh a cit is tehialy within the bdundas o nSS wih
is efiedby county boundaries) and part o isfrecii muted to a central city, it had a substantialyidpn estc. 2. It has a population somewhere between ,0 n 000 l though testimony was receive frolm wtnessrm ph.n1 n
larger cities.
Three day of beaisa were held. by the sbomte-i ah
I) o3a}1 1978; in Ada, 01ao My1'198 n
in SaaoaSprings, N.Y. on May 26, 1978.I.adtoh uhnn
t~etional material was solicited and received .The Washingtn hearings, aimed at setigteaprpitoa tionalprpetvonmalctprbms
Thefiawa oerewihteipc

author of a number of recent publications dalingwitheconomic population change cdokig in nonmetropoliaar"
2. Herrington Bryce, vice preident of th1 cdm o otm porary Problems and author of the reentlypbihdsuy"ml Cities in Transition: The Dynamics of Grot n eli.
8. Fred Zook, Mayor, of Ottawa,' KasEndcarproeo h
Small Cities Advisory Council of the Natoa egeo iis .The second panel was concerned wth th oeo1tae n e
gional agencies in meeting small city needs.Othtpnlwr:. 1. James B. Hunt, Jr., Governor of NorthCrlnadcimn of the Subcommith on Small Cities and RrlDvlpeto h
National Governers Association.
2. Harry Teter, Executive IDiretor of th paahinRgoa Commission.
3. Wayne Anderson, Executive DirectorofteAvsrCmision on Itrgovernmental Relations. The third panel consisted of Federal officasrpeetn h e partments principally involved in providingdvlpetassac to nonmetropolitan areas. These witnesses we:
1. Alex Mercure, Assistant Secretar-y forRalIelomnDpartment of Agriculture
2. Robert Embry Asant Secretary
and Development, 'Department of Housuypent
3. Harold Williams, Deputy Assistanto Scnmi o
velopment, Department of Commerce.
The May 19 hearings in Ada., Okla. wqrecareTdsprtoa day conference sponsored by the Small: Cite rincneroth American Association of Small Cities. More nWmyrcivmn agers and other olicials of small cities gathrdo hf 6neec and, in a series of workshops, prepared position mon" rbe of small cities in dealing with Federal DFOgrI'

The subeammwittelhead igweeoened: with statements 1y:
1. Dr. Luther Tvme Rgetupoeso of the TJivrsit of Okaa
homa, adid deather of a recent boonnonmetropolitan problm entitled "'Missopolitan Development,"
2. Bil Hill, director of the iamishi Economic Developmnt
Reports of the previously mentioned workshops were presented by: 1. Mr..Ray James, architectural engineer, James and Childers AN.N. sociates.
2. Mr. Jim Wilk'n, president, Boswell State Bank.
3. Mr. Fred Stoval, publisher, Latimer County Newsv-Tribum6.
4. Mr. Jud Wood, city manager city of Coalgate.
5. Mr. Sam Marshall, Kiamichti Edontodic Development Distric.
6. Mr. Dale Barnhart, health planner, Oklahoma Health Systems
A. .r. Noel Mann, director of administration, Southeirn Oklahoma
Development District.
The Ada hearings concluded with a statement by Dr. Roy Dugger,
executive director of the American Aspociation of Small Oities.
On May 26, the subcommittee reconvened in Saratoga Springs, N.Y.
o6r its thard session with the following four panels of witpeases:
I. Panel on 8ftte ad Regional Agency Reponse to Small City Neieda8 11. Mr. Wiia Cabin, direr, Dinsion of Neighborhood Asasistace, New Yorkhese Department of State.
2. Mr. Bob M~acke, town supervisor, Lake George, N.Y. (representing Adisond* Park e 0~ y).
-~~ B.asaiAnee. board member, Adlirondadk Park Ageiasy.
A rLa aon, Senior Planner, 'Saratoga Conty Plannig
1I. Panel on &maI Cities and Their Use of Federal Programe
I. '@f. Bill Lowenstein, director of cbokmunity and econoii der 1opmeah, Huie N.Y.
2. Ms. &ie Stokes, executive director, Saratoga Springs, Preserva(ion Foundati6hi
3. Mr. Ex hik "ankowshki, urban renewal director, Mechanicitille,
II. NeigAA rhod Revitalisation in Troy, N.Y.
I, Mr. GarPland, Yates, director, Troy Inner'0 ty Neiderhood
N. Mr. Jo&e Eamay direeter, TAP, Inc.
PPT A- vbim A gency Response to 8mwa City Needi
LMs. Karen IHanson Director for New York State,Farmers Home
i(m!miatiopn U.S. apartment of Agricalture.

Almost witout exception, witness who testified on the conditions
of small cities across the nation emphasized their diversity. Some are
gpwxu gind ench agn 'further growth. Others aegoigi pt
ofthire tsto d~curage it. Some are stagnatig Stioters are

While it is possible to devqlop se.: stistical. gates pe taining to smail cities, these aggregates hold little mtility for efficials trying to deal with theirown immediate problene in,s pAticular1 community. Probably no set of Federal prograseedeld be designed which wonld be universally help tolL
To deal with such diversity, the subcommittee had three season mendations:4
Recommendation No 1: F'ederal programs should be dealpged or redesigned to provide the flexibility required to~meet the dierse needs of small cities.
Recommendatlemr N. 2: Federal a Aministral te structure should be rera &~dt provide greater responsiveness h oAte
needs of smallcies
Recommendation N.3: Federal efforts to: build governmental capacity for al citlep should be intensified.
IL Small Cities andI Balanced Growt Policy
A decade ago, the design and implementation of a "natkmnal growth policy" to create a more favorable "rural-urbanjbalance" was adyol heated by many prmnnscholars and policyniakers. Today, though we lack a grwhpliey there are sorde indications tlikt we arm moving toadsuch a balance. Federal programs have played a msa role in the movreiment toward rural-urban balance. Some Federal prograzos have been deliberately dilvatM toward this goal.Thes include 6rg m f the Appaladbran Regional (9 pmis. sidn, the Eco nicDvpe n &ministration, tstiond Tfabeth of the Rural Development Act of1972, and the 1sws permitting tax exemption of industrialdevelopmntlionds issued by lotal auhrthnke. .Other ederal_ programs that probably eeptributed I o twr achieving a rural-urban balance achieved tus' purpage, Nuatentx Thus, the Federal highway program has ad a major infuence on dustrial location in nonmetropolitan areas. The qputum leap i

accessible and attractive. The soial scrtsyggan was never 'in tended to af fect populationrit *f bittion; ye t pidy 8%&d income for a Iarge tnu bt ofrtirdg pes'hany ofwhom cho ab to Ilve in nonmetooltn areas during their reetI rement years.
The new growth patterns are notehitirely 'paitie nor are thei eonsequences always what was naipated or antended bythe pooet Pat exprince with region development policesdeteta they require difterentiatiop-m--thsat is, a recog xoth 4l gro CoMP munities are not alike, nor are all declining -Omiti lshlke. As te various causes of :gowt1h gr dedine differ, so should the puhlis response differ.
In the late 1960's, the majoimeu to teclfg ra-urbanbl
dance was a belated recognition of the impAs of te le move-. ment of population f romn rural and saltown areS4it the mto
.... .. .......................................................................... ... ... ........................................ ..................... 'i iii iiii iii iii iii iiiiii iii iii iiiiii iiili Ni xi

polwani dups. Tne imme4giate Canus -for cnenwas not s mucn the hafl,affects on. if aareas of outigr tion but t thr the effects

needed f6tBat lving.
Ironicallti interest developed just afe theo crs of the rualeurban-id ito tide had passed. .As demographe Calvin Beale

Bapid rural outmovement had. beend during sinee 1940,
.with the beginning of the 17.S. defense efoftsIt continued
apac in the 1950's. as farms consolidated anu;(as the workeraliort cities welcomed rural manpower. I'romj 1940 to 1960, a net avre, of mome than 1 million peple left the farmss annually (although not all moved to metiro cities) and a
ba4 rityo nonmetro counties declined in population despite
Wibxth rates. By the mid 1960's, this massive mvmn
44drined of f .so much population deviously dpneton
,Iagicalpne and other extractive industries that tepeak of
..tmi .igrati on was. reached and passed. 'Yet, the impact; of the movement had not been well recognized by cities
'or reflected ini public policy. By the time that alarmn over
reral-to-urban migration arose around 1965, the economy of the namtr areas, as wel as the social outlook and
ifuence qf metro residentswraledchinas
,VtM weud lead to a halti te not outflow..
Long-time proponents of rural development were joined by spokesmen for urban .interests who had concluded that urban problems at theial tension, wrime, pooverty, congestion and seeial alienation were in fthd other side of the coin of rural decay. This hnknwas clearly articulated in: the 1967 report of the National Advsory'C; 3=3immeman anti Raral BPowery: 2
The urban riots during 1967 had their roots, in considerable peat inral poverty. A high proportion af the people
craowded into oity ahums today came there from'rural us
This fat alone maks clear how large a stake thevpeople of
tho natioathave in sn attack on rural povery.
oth ifialparie, i1968 committed themselves to Ia natioal
TUNatioal Governrs' Conference, the National Association of
ountis, ith4 U7.S. Conference of Mayors, and the' Advisory Cointmson on Itrgovernmental Relationis also issued statements dealin with. halanedrlowt.

the establihment of institutions to: implement such a policy have not been Ahived. The two instruments authorized" by:Conress, which

manated. by tAA Housin -an1 111a Dedl b. 45.aE.1,7 Statesw"1-69,se.70) and the rise ofal the salt th oesauthorized a eqbn c f17 i a 249
WInters Ho e concept o. balancedgot miust fush Devopmnt. Thcessrl Conerene asecneta nth al as o
refalee concen h at t hlei the s-ald"e a e~e h haes, ahevd lhevries of proddisubl adecieoth"swet"
unpraelb ioseCnfethe o l ne aina roreadECO levelofmemt loyen Cnoreneeal disthoie ytePbi ok Tafndingsnof thiselapttf16(Plca 94-8)hc arelncte tondieentf thatwie findiagrgtteNtint groe hchdevpie lee of dionshnlgiatX~nvime andathelerecess theog whic, rha le eterstsatr addres temloymnt nearieldsbto of thinkingrwth Tuht, fidig ofha thissuaes involttdved o aacd rwhplc asre" m y have siferefrme iding eefrt eotIs nblne gto faesitte r ecalizationthaet i ainJgot oiyise ane nte e thopati and rnen tn h rvaesco
tbaoottves ta e issusitntolaed n nta sml n ce

atteveryone agrees on what a goalon blne" rwhma&I halieean sedto refer to balancebewnuraad.ualxas balsne between Iagging and propru ein, aac ewe cities and suburbs, as well as to balebewn sad poctn of the hauxi-al environment.
A dynamic free -Society will nevraheeasteoprfcl balanced growth. However, it may b osbet leit h economic, environmental, and socilpolm growth, technological change, and inrmgcspto ebad public demand," referred to in theSeaerpt.dligwhte White House Conference. The disoain..cue nrentym by the intertwining problems of emer hrn eonxercsin and environmental protection wereteni h w fa n stitutionalized process of coping wihgot a eeomno shrinkage nand decline.
Recommendation No. 4: The needsadgaso aacdgot need to be more clearly identified.
The subcommittee endorses the 'bscpicpl ie~idi h staff summary, of the White HouseCofrnebL aam'Gwt
-that such processes:
...should involve all levelsoh~ enet n nld
citize input. 'It should result larfdo fntos
*U.S. White 1ase Confere on Balanced ]aetrwm bo-.Dv~sm Star Sunmar or Proceediara Wasblarton. 1L97& .&

the ~ ~ ~ i th1tion, foatcptpolm;ipore adealesis ofsat polcy ltenaive; bttret, bgccoraton ethn sapdl among~~~ ~ eeso goenet omr henomevty nir eps xin &-adeff aong mnaipl -ojcities oadrgat; to d thitanin

gmti of olic andpr tae aviation of mtanly ad-o
tth policy' andfrceplicso
1H. hehangng asr movin owardionctratin

popuatiosetlemetduingtre in pathcae. idt ol debatiutea revesalofalon-tertenduhappsenbtirl whethery ito sha pro

It rsuls nt- fom ny egnt o evelop, seins thens midt160's it remlts from theT3othltxiformtion reganrgscar diecnohem

condi~~~ tional Deelpmn ou Ini i mmall citses rif ce byp lin Trancis ,Y~~~hich8 innwywrIned d t ae by Heingon J.tBryce paide

1. The m ~ ~ -etropolitan Pra f.teNtopulaon Growesth ne 1970. poin ofpoplaton r1wh, ae Goverinet RshpdtoTerTesed 2. he onmtroolian rea n the Cito, he Houeaking in ac sand

Th nw aters eranewd ay 26, 197bereaer e ferredtosa

Petopl atin Are80-5 1647 90-5,1907 17-7

o oal growt an decli.. in 8n 1.6% .8nc 1.1 704 :of rerthe r .......s 1.9 .5ndr 1.1o a .ttitia .8e .5
faldto ..e...t.r .n Ls. n pop lt2o 8 th 4 .

,oto a metropolitan coun*spatyth esl o h

toioran oe ariigoeAh-cte'mgeia a

esi sortanti-a a eeeysrie rdtoa

mate to 1Wth'sO....E 19 07 .2 D 198708 .7.
Prntirelya Annral countries Anua notalApW

T nlue otalaaidfrmara idhia ewoest h Unitell States ----s-- 213h05 a.3 0_9 1.etro-L2 Mepolitan :te~ypout aiieno n o ae o oh Toal aInSsid 2ta olitan---- stt area (SSAs r wher defn1d .i7dfMthia Grreas ts). n New d,00 --- land 94 ubty meroo6a .se 1.CM 1s A .t pe L es tharl"an s co25e0otansotw o00 or----- 8,2 more 1.habita2ts.

The~l onterpat of hstennoadmerplta eln
ties the--"rural renaissance--th 5evival or 1eeerto of pop .
irn c oute frm hich-a w n II'ha h wsta
countes th t eest oauig9thsthtaenirl
rural t tn ot Madacen to40 an SMS. .re 'xSicig h ns
n otal reversalcofmeirto. hsesal nesal
cmutesaeileupe to dea 10,th sude popt8ila- .
3 to et ao 4Waa a m

Iea and institutionatrnetares for coping with uhacnsaomd attention.

Inaicmplex national shift of population fidohreuh and 4cpul" actors. Part of the phsh hes been the changing fnction of cenralciie and metropolita areas. A series of essays on -such chngsand how thycan be dealt with, were compiled ly the sbcommiteauder the tle"H o-ities Ca Grow Old Gaeul".' In
the eaess in. tha cleto, George Steralieb and James Hughes lis sc~raofth fators wih have caused a shift of economic functions frommtropoliten areas:
yisy~ capital prants.-The indlistrial infrastructures of our odr regions relate to production methods and approaches whih are no longer comhpetitive. The shifts of jobs and the dining .shares of capital investment within these regions iniate that obsolescence is not bbitig couteted effectively.
Rasiialisation of labor. intensive industrie's.-A vittual reholtion has. occurred in the technologies of goods proatid-t, information procesing, and communications. While unmtion and technological change mnay possibly Produce nwjobs equivalent. in number to those replaced, it is clear
.httheir geographic loci do not coincide.
Hardening of the ar teries.-Aging regions develop a variety of roifficting property interests in the broader sense of the
~cr M.hibitors which limit their ability to adap to
in mdusinki demands,: thereby reducing their desirability
frnew entrants.
m atl lumiogenisation.-Broader technological changesL
such the interstate highway systemx domnestically and dry bul ea o shipping internstionallytinabrmini Ine loesil, adantages once inherent in 61der reglone asixd their ciis. Similarly, alternative developihed ssudh as the bWmi:zicatidns revolution-have made hretofore bypassed
ara now directly competitive.
Rmeptividyl t rowtA-14cational decisionmakers are shbjdnet anly to basic economic constraints, but also to adbtle, re ifalh; intersetios with local politiea structures And in osiwth area autlist aoereceptivity to potentialhnew dai;redtateds: s high in eontrasttor the older regions.' t the' 4 sy Si 48 and atthes'Belaborate fute on foi~s1 'ih are"4 ph hffypopHTatt frfin fH6tW#8Hlti &MaS.
As in the case of economic activity shifts, the currents Of >et nal population flows are shaped by a complex. of forces eating locational' decisiorimaking. In addition to the basic '0Mtrprint# of economic. opportunity, we believe the Tollowing 44ri tha direct relevan'ce for both undertanding and
Peaig recent vns

p- 1M. orOt4 a b w drcethly, (Cmittee Pit) WasJLhingtonD.,
U.S. movement Printing Office, 1977, p. 14.
rbd .20.

1. Earlier in this centhry, thoisaptes toward pplation
decentralization-suburbanization-was underpaid by tw factors. The first centered about facilitating rnariani mA The pyranniding of snecessivatechnological innovations made f& .
aible the habitation of territories Teyond formal city bound'aries. To cite biut oneeratnple, reent innovations, such as the' widespreadiuse o air conditioning, have permitted the lageb .
scale equivalent of suburbanization to occur lb eque thing
regional elimaes.
2. A second factor, social ad cultural predispositions, muat
aet in conj unction with thedfrat to produce large-seale migrations. The impetus to flee ettings thought of as undesirable: socially or environmentally for more pristine and/or ..manity-rich alternatives has nwbeen permitted to work itself out over the entire gorpyof the nation. The regional shift has compouddtefih to suburbia-with equiivalefit
impset on the older city.
8. The older cities built at very high levels of density are
of necessity much more fragile, their complex infrastructure much more sensitive to interruption whether accidental or the result of vandalism. The vandalized heating plant, in a decentralized setting, discomforts one family-mn the Bronx it may
result in a hundred households seeking shelter.
Given population proximity and with it very rapid communication, even with equivalent crime rates-the fear of outrage, the consciousness of its existence, will be far greater in the dense area, i.e., the older central cty, than in the decentralized area. Indeed, even the complex infrastructure of public transportation, available as a function of high levels of density, is peculiarly subject to the vagaries of group behavior, as compared with the relative autonomy for example of the automobile. In part the migration discussed here has become a flight from fragle environments, susceptible to external events, to more primitive Ones which, at least in part, dIo not exhibit quite the high state of interdependence of the
The "Push" factors elaberated by Sternlieb and Hughee are notinorable. An enlightened and vigorous urban policy may make our aet ropolitan areas more viable economically and more desirable edtlf. President Carter's message on "IUrban'Policy" of March 1978 is certainly a major step 'in this direction. But this will noit happen fast. Meanwhile, one can expect the factmer they descrilwl to prl orAn some while, annouragi agtli continue novamentt eannumiid activity and population to nonmetropolitan areas.
Although the overall trend is toward populatin growth'in smaller communities and rural areas, there is still great diversity among individual communities. For example, about 600 nonmetropolitan boun-, ties are still characterized by net outmigration and population decline. These counties traically have a laron minority und ation and a

k,7 ra.tot, vle,% Afouatindeine.
miated withl theot hif fo bi- t
Of.themo tan 50 ie nthen. Ala0-5,ban norteasation Mi cC,71,9wival aret hsciated wisth uainryetat.O This~~~i hiesi -ee ion Sath ineal gwh -m be sinioen

cline ~ ~ ~ ia activtr ro omuity was almnireadyurnrwayy re-i

grwhai xmpeftem ithcanudeh: ofr4re:tpe

-ashingo nontC, MissLouiNsle,Arass Ctalinia, rei-Groth sxoiated with eerg vailfrmbiity opie:

gissima, Wetr estViiKntucky, Oklaomrlina
necesity empas ofr cisntte Foia wliforsniican.t

a mun -o idutrias ctiing wa Satreapial unenwyiort to, th 6ilubso. tatialmiar popution Staesto

4. rowh ssplaea greter choicel of whetreeo livefrua
Xichian M sso toi thonss,e in armepitan arw easc,,te
OreBrycMan1, earigs.
e! arthy, Keinh F.rTecaging DMogrhiand Necoow
:anshre reast Minsteo170i, SrantasMc, Califri, RnOrpor
wiro t s s to notetha e rg aas i antircetag ofrh populte o
Tense lama Wsaest ofgii thenflu feir, many of who
7. Attracte 1930' t:s.ria Clfonaad

mere people caught choose to .stay theree; an senteen front cibie& Two wtapseesat the, hearing teshiled thatt his-,aen ;Po* ing. a choie has -been achieved for many people. .Bevoele i recent years, have combined to poit ae4a1cnom0L lv ing in the small towns and rural iteas, including the ufo sited b Peter Morrison:*
Advances in the econdi nis snd teblmology Of 'tr tg
tion, ad communication have removed many bf the
constraints t6 nonmetropolitan grwth bymcigle
aecessible to the national metropolitan economy.GrowtApr~mo i. imustrial tre&.- (1) d ece&68iig
tion of manfctrii in response to A-duced transportfill costs, inexpensive land In o wagusra teenarmetroli ara; and (2) th revival oraspassioiaof energy eteo and highly lpedaized-,large-scepeirtergy-related induia
development in the Rocky Mountain states. ..
Chang6a i9%the American lifes ie.-(1) the trend .towr
earlier zetirement;. which ha.s lengthened the intervaldt ing late li;fe when a person is no longer tied to a qmeifueplc by a job; (2) new searces of.incomeonech as peasiose. saloh payments which were either earned elsewhere in yoer years or are a transfer of pumblie, funds from taxes paidele where;,and (3) increased orientation at all ages towars li sure acttirities, catised in part by rising per capital incoe and centered on amenity-rich areas outside the daily, rgeo
The deeomnscited 4bove have -combine ofcreat6's:gw inducing codtion described by Assistant Secretary for Rtra~vl opment Alex Aterditie .,
There has been a relatively greater'ekpansion of enwi y
mens opportunities in aer e.ase; Between 1970 and. 07 nonifarm wage and slremoyment increased by 27pemn ih nohmetrd areas, crp rwith 12 percent in metro aes In addition, the character of nonmetre employment las8o
changed, with service42ifortriing jobs taking the ..i dP re.cent growth. Rural employment, ean no longe be equd'hs with agriculture in mnost areas.T Aniother significant chsn has -been the growth :of women's labor foreq partiiqion Womn accounited for nearly two-thirds afni nometro, empo.
abent growth between 1960 and 1914."Thus, economic herur to maling ga decent living have been reduced aid along-wt
then some of the eonomningstr migrating to ait
search of a job.
Mercure also attributed the new growth in rural areas~t 61 that, as recent surveys show, a lag semn ofteNto6 prefers rural rather than urban living, although most. re~~et want to retain easy access to a large metropolitan city Th, ences can now be acted on, for the reasons deribed above an&eas of another development describedby WMecure:'
e6 Testimony of Peter Morrison, May 16 hearings. 7 Testimony of Alex Mercure, May 16, hearings.
8 Ibid.


M Any discomforts previoehaly associated with rdral. living
amlei nologen of consequence a nmostirral areas. The autdihobileplusenchological dances such s all-weather raad
rural. electrification, exteysios of water and sewer facilities,
ruraittelehone- setvice, andi badband communications [bex*
ist]in many nehmetro areas. They make a contemporarytyle
ef life paqsible regardlesof urban-ra al leeation.
In the subcomunittee's compe ndum of. esay cited earlier,* a common theme &s that. an undeclared. national uba polic des eist. This policy- is -the'su total of many seeminlt ee-Tat~te
which ato nt. seen as population resettlemient programs, thugli- they may 16tMAt~ly have that effect. For example, tax- poles, Federal facility siting and procurement policies, Federal construction grant programs-and national macroeconomic policies are designed to deal with specific problems which -appear quite unrelated to "'the crisis of the cities,"; or to "balanced growth," or to "rural development." The impacts of these programs, however, oftenaffect the growth or decline of compaqunitis more than phaograms specifically designed to deal,,with economic development or population redistribution. With regard to macroeconomic policy, for example, it was noted that; : o
I Jis the- presumption of the mrakeirs of national, economic
policy -tt all the- shipe~in the harbor..rise and fall together.
Thisis not true. A decision to seek or accept a particular rate of unemployment for the nation is a decision to-aceept a much.
14gher rate in particular places. A decision that is seemingly 44algA1 ggographically-whether to aneomplish a particular
aim through monetary policy, tax adjustments or spending,-; ind.ikely to have quite different effeefts in different places de
pending onl their need for capital, the average income of -their
residents or their need for assnstane programes.t
The impact of Federal facility locations can beparticullarly significant for small cities, since their economic structued arelesis diversified, making thems highly-vainerable to economic instabiity. The Federal highway program has. been a i primary factor in I desting-rnew settlement pattet a no it allows people to live in ruald areas or Whnall comimaj~ies -while -retaining access to the facilities and services, of larger ipan, areas. Federal' Social Security programs, which -wre. never tkoaght 9f. as population redistribution programsaike it possilekfor people. A eend their retirement years in areas not tied to a source of
Itisbeoming increasingly. clear that Federal policies and activities Can have, secondary impacts which help to determine the fate of small cities. Te subcommittee endorses the administration's initiative in requirirg an urban impact statement which will help to identify such impaots-efoeolici0es. go into effect.
*U.S. Congress, House. Committee on, Banking, inane. and Urban Affairs. Subcommittee on the City. How Cities Can Grow Old .p.149-29.
*ibid., P. 188.

Recobuheadatib& No. 5: The-urbii imptA gle aqqent*'called for in Prelident Carter's "Urban i,alieyf message, o Apdi 1978 should be defined broadly, enough tbitaluse sanaell aiV& I
Again on the theme of small-iti versity, Assistant $rtary Mercure said:
The factors that biag about growth in ote sentiay U of
little consequence in another. For example, retirment and
recreation are important in some. parts of the country while
the growth of service-p~erforming industries is of-whagy importance in. others. Similarly, the consequences qfrecait
growth trends may be different in various parts ofth
country.. "-Governor Hunt also pointed out that not all small cities Are growing and many suffer problems of downtown decline. Furthermnorb,, even growing small towns may experience pockets of poverty or eat tand.J& ard housing, as well as other seeial and economic problems.0 The 8ignificance of these differentiations for public pohecy was hs forth Wy Peter Morrison and Kevin McCarthy: a 3
Regional policies may fail -to capital 'ize on the nonzietropolitan sector's emerging strengths, however, if they dvail ok the diversity of growth-mnduing eceitomie activitie flat have bee tdrsiwing m igrants to nonmietropolitanA areawin this decade. Since the kinds of *change taking plaesthn MAn'res hae Aiinportanit bearing on'the approprite ts ii O414 sopsn aid~t assistane, timely detention of these chaged is inq a t ab that policies can be designed th6 develop each arda'spouit Elities fdr growth. Ft't -example, places in -whieh psyn stioni grows through noaral increases cannot be eqitki withihbA mn which population grows only through i-miglrstibit VNt though their arearth-rates might be identical).. Wherema the: former, type of place may- retain most of its.prme Warlsigage population, th;latter may be undergoing' eepoDOsition
as arriving retirees replsedepartig young adults, CQlear yI a. '
new firm scouting labor markets would favor the, former. ,-+.
The subcommhitte, believes it is essential that sagaldent adsh el demographic data on callerr cities'bpanads available t pdjY This daata liould reet the:'4iversity of exei-Mq:.W cities. Th6 subcomimittee endorses the'efrMz tth f

urban data and informattion systeni.
Recommendation No. 6: The Departnh is of Ag9ritaltuA hd Commerce should coordinate their efforts to develop. impVArved data on both rural arid urban 'condition&
n1 Testimony of Alex Mercure. May 16. hearings. 22 Testimony of Gov. James B. Hunt, Jr., May 16, bearings. Is Kevin F. McCarthy and Peter A. Morrison. The Changing Demographic and Economfe Structure, p. 2.

IV. -E~y 'i theiv# uto i theobigedtesa Fud Betwee
Metrpoltanan ter oiten, bras.In,

Awi~ o winesss a theheainlgsh ais1etied thnk nmteyli

comarion iththelarercobnerneds aTyii this viewpoint ridst ~~~~~~~a othe following-cllqyewe consettieelyanonqMivente Zoo.-e~iiyig~o bhaf fth er Nthis 1a dipofportioedsriu
W.KyLY. o yo haeeayen baplance aou omr lita
hi~k Ot i th cotthisrqFestil oney th ae r su cmitace
bas'iswith ih epl ht coe nrotedi cis prprngso
gehmly, spekin B thtdetl on Ch m ities th n th .oedgleth'soti ndoft Forms doflassstn.
T4 ~~~~ sbomte-depl cnernabout d s ifet ont aid utn seek 9*,evldecn t1 susanit o aq rfty of. Reopianttsbcomfun

mitte a beii orce tocom toith to detrmneun tha en otahe

,~~~~~s ofthe unrellbi i mpsiblto tihe datan readthisr anlssoee
tio -o.,F ra fuds.epula-mtioa redomnnymetro-oia area., mtrmg~ dal ito the puetoplte rsidingiteefae many-of1he'sam dil ra icofoutlay anlyzedain its report o Cho ikpact Fedras iugen fisca yeart 195 wt 74.9ed eral~~~~~~x Theri,-h. aity-ffrefr o a pecaptanc bucass,I-as grats~uar~utesserlce, tlacsterte higheren eteropltaontn and~~~~~~ oootf' qieet,-n Bh any tinanes and rbapintAfs, ucomt. IiES!] 'UUAZ unentPrintgOe 1977.AY 97
tm'as' Peae t; essaromtPeiet of thua Dvlpented"Sates jklthiy' 9,- 1M,, aneport w GovernmentServie t e geralrAme icpr di~ii~in'~fF tras Acr o2170. (95ethd pogrms sesaloHos i~~owrted- '&r~U.S Govrc o eernmenutly fr itsi ace 1975.- on

mhaintrohyth reltan thnieaiAal~ in13 ine more *nnportnt in cmaednith$s ~tropolita

ofutidesHoeeti distribrution ofos al edeterot whch so crue o prte daiantl exami mrsubaoutis Prcptoulyfodees:and space prcuemn ar ovnralyceed conrat n anao lyi isrideclointhemr ua oni moe anlysfreina Ariato tha those wend saewr ldometropolitan aeas semwouindiae thatve otheatrs plrcpt uly hnut the disrbutiOn fe Federand uthy o urwhr n gr uams b etween city aonryd 1"rcyoine

In~~~T its studyA eniter"robed L butonmo eerla. Doars, the on
gustv197,patemtedosi a nd oe oh ityn nutradvl moent were mpaten vrou aras outasi erpltnad sa nmetatabase asothe tPesdent's e virtal hsm,$4
untiae. Ho6wever,thin af p erely:aog -~to

G oponent rs o the AAora e huttia sn~ W era oktla ys ertelcon of oumne ofesucdlom m enoprsd*be w ou s olft ththe primae. cnontath was plia n n mt Anr les.r-s ouigotasweerltvlymipra

g cras" oly 5.8 -percent of the data was readda unreliable.
- The congressional Budget Oice report stnuse between 'Mevelopment programs" and "other Federal spendi as follows:
Development Programs--progranxt that may be expected
to disings the terms on whiich individuals, business, or aes
c, com including
HumnAn Resoeure DevelopmentG neMI Euction Pro
Humn Resorce De'velopment/Job 'Trainig Programns
anid Professional Development;
Business Development Programs--those :programs desged to assist speedfie firms or to facilitate the operation of Whle sectors of the economy, including programs that pro
r ae. tocnia assistance- and direct subsidies (eg., agricultamn 'intergovernmental grant prams thit help tiace publtic services of A, general natr q(e.g., LtAA, general
revenue sharing),
Regional Development Prgrmslrge public .werks
,projects such as interstate higw s dams, irrigation, etc., from w~hidh the expected long-teimneft extend beyond the
area immediately adjacent to tli 6ontruction site.
Othr ]Federal spending, including.
TItcomte Security/Cash and I-kin Benefits programns-mch as puiblie (sistanice, foo stams emedid and n edi,National Puroses and Fedeiral Pd Ik be~fense and,
freign affairs, regulatory ativite si M iaank, and
other geiieral: government functions,
rghsihg 'all o;f the data available 'on 'developmnt prgasth CBO found per capita Federal spending in metropolitan areas to b $242 as compared with $234 in nonetropolitag areas. Whenoly the reliable dati is used, there is almost an exact mateli ih per capital spendiag-$8SS dollarsfin metropolitan; area versus $927 in nonanetropolitan.
To the best of the suboomtees knowledge*, n6 analysis has erer been attempted on the locational impact of a ntlmi of forme of shamo..assan...s..'oas Sumhc -fas s*4 ld inola d tax
espenditures ad theincreasinglytpplar loan -guardste6s.
V. Equity in' the Distribution 6f Federeal Services Bietween
-Metropolitan and Nontmetropolitan' Areas

While the distr-ibution of Federal funds might have been amenable to quantitative analysis, the question of equity in the distribution of services, either direct or those which may be procured with Federal

funds, is a judgmental' on Baed -on the tetimony ofthi "dfa review of other studies, such a judgment is possibl:SriA8is in nonmetropolitan areas do receive a lesser quaity ofr<:a:fo Federal progras ta do ciie in astrolpolitan area In coming to ths concsind~ th 5 boonuittee weigethprb ability that many of the witnesses were motivated,byaseeofnv

The most thoughtful colloquy reflecting- this was dui&thacus of the Saratoga Springs hearings Awhen Repjresentavedisk a panel of witnesees:
*As Iantlerstand, it nowK, the large urban areas argetn
towo i muh ey, and you-want t6-thlke some of tha oe away from them and spend it herein your commuzie. o
understand that correctlyI:
The pae' eponse was. that it was not their. intentoro elr "twar"onte i cities but rather to express alelbi'a~hywr not getn dqaeconsideration, that they were en"asdorl and tat tewere loig for their "fair share" Analysisab the subcommittee could not support teasrinmd by a nipmber o wtnesses that .ederal Programs wer ratdpi marily. to -t(heaeds of larger cities in metropolitan ea.Whl there are smeh programs, there are at least an equal, num r-hc r oriented primarily to the needs of nonmnetroDpqlitcsus ned a good easm can be made tlua Federal progrias-sakdtercn growth omay smaller cities Cases in pit nld,..h eea
highway -programs, EI)A loans and graide, adteaxempinf iners on 1oal industrials levelopmen~t bd.agete W hv proal bpen the mpst -significant- factors in aptr oeo nomine of small cities, not,* only- for,.Imandashig. u as for* increased recreational activities, tourism, ad s#act ryti fbn nsites .,
There 4 ldstly are diffietdties 'in proviMing Pedernf mriertosn cities and nonmetropolitan areas generally. The renidr fti report includes suggestions for improving the syatmh Bttob realistic, we: as i' ied6g tilad-mitiifas hi6h imedwteMe livery of services to nonmetropolitan areas.
1. Physical Dispersal
The sheer physical dispersal of activities in nonmetrobia ra tends to make them more costly. To the extent onsitewtvie reur the presence of a Federal official, whether for consultatosit oa officials, inspections, audits, or tH 6 ke, smaller pi-of Volve extra travel timne. Given -budgetaryi0 con trai ne ra il may show a preference for servicing more gegrphicallycnetae actitis oruer us get-greater "prouuctivity" fromthi stfs
1May 26. hearines.

RkommedationNdT fCoren. Iands ar xcue brac shoudd~providea hihrlvlfaingfnthe faieo sucpor oeulz servite tebrae'stto.eitiesshepnot'gettreA WA~sto r~uco he iedesshae bel cpityps, r.t Lot .ha its radeff poble sringsmpeamris: "ofm aecidestb lishd; ut,.ne laersonn thFeea iluneisted speot st

tions.~, perndns;bt hso ncs h pruably of tidiec tionof Fedralpu on imnigemflo ofFdraluds.
Witnesse fromsalliis ufracceptaybe f coure olxt of~~~~~ h Federal buratosAn omlietaucracy butea thi b
oriente towgrantsmadnship techd rbniueas.Thhe Mor spcifc cmplins tooimprove their capacxbity o idedea standard wer die nd atchlytheeithnmtheamostanad apd houing Ai qulitstndartsofDieniomeal Poeto to tooid theh subommtte bybMr. Recommendatiy Commisseexcin onc nerodrheieit

Smll7 itesofne~esipretd high lighted howff Themayru n other~~~ ~ Maiil otncry o thedruis fucin-spr-ieos

of governmental-anifia involved, and their inheetdseooiko we&16, males it sti~ault to ptriide'an equitable istiuino ~ services to small pities. The following quotedosfrmtatAI~ report are pertinent to the subcommittee's findstht=Hcie receivp a lessr qtl o services from Federalporm
One of the ajor problems in nonmetroia n ra
local goveraments. Their sheer numbi* in~genig h 78,218 units of b legal government seported n17 h Bureau of the Cobsus, 56,088-were outside o M~.Sc a figure might be viewed more favorably i h aoiyo those governments were operating at maximum fetvns
and eiicieney buxt tha is not the ease.
[A] large peentage ofnnerpltl oa oen
ments ... ..serve sal1, h ly di
ing at them, the question of economies or dscnrso cl inevitably arises. There is no consensus at thi i*ea ope wisely whpt polationi size or density is mot erliielco miniiing per capital expenses ih providigovrmna services, or what the upper and lower poplto leel re1
which costs go up. Nevrtheless, it is gnrlycneldta
very small -govem4n tal units, priual iygnrl
purpose local governments, almost al asufrdeonms of scale (higher per capital costs) in their servcn ciiis
Seventy perenteof all non-82ESA counties avpouain
under 25,000. 71 percent of all non-SMSA onhishv populationseunder 1,000; ad 62 percent ofanonSS u nicipalities have populations under 1,000. arg ubro these governments have a dif1fidut time pridn eqae
ser vices to their citizens.
V Role ot Non-Federal Agencles in theDeiry Fdm

The subcommittee devoted some of its hearing oteptnilrl of nn-tFederal agenci'es in the delivery of Fedem sstacto-ml cities. Governor, Hunt -of,.North, Carolinaep resedteNtoa Governors Association. Harry Teter spoke forthApacinRe gional Commission, th~e largest and most active oftenmrosmli stae regional commissions. Wayne AndersonreesndthArepresentative of the New York Secretary of Staeichreoassb myg small cities, and one county olicial were head The subcommittee reognizes that it heard frmol' 1'ad oling of non-Federal agencies. Dozens of types fsbtt rmli State organization wer6 not represented. A frhr1l ~ainV that witnesses -who d~id appear tended to strewsesse ahr.ta failures. The most notable listing of successes wa vtets Mr. 'Wayne Anderson.' However, he also criticizdrgoa nes
assigning some of the blame to the Federal Govrmn tef
Testimony of Wayne Anderson, Mar 16. hearings.

t4% sbjctof 1divers Federal policies affecmag regional,
coun Oing at ACIE have indcae quitestrengly thattheFeier. influence could -be both more gnstrucite andeaie, t dalwith if the Federal Government had a more 6 to adppo ting fles rginizations. As thi stnd.nowthe Federal area vide prgasspawn camtcomle~ u-o-dte fiuen thi -situation, Ou 19 in7
s eTh eas ebte the frametdion ofilred al gernment hich aen documented over and over aging. in odr own tudes nd he studies df many othei groups 86dh fag menatin Atars the effectiveness of reinlcoinild .5
deyig he te economies and enacdcpbilities of a sinlelarer-un'I, and by mnakitng it shnost imApossble to
iev'esentalcoordintion amang the wide variety of
Federal ad prgrns in these areas In other di-eawide adkv:
ice o jintacivtiesof localgovernmient.
In.bacup ateialpresented to the subcommittee by Mr.Wan An irsonthee wapinluded a listing of over 30 IFederal program supportng sus atergional activities. In keeing w to h limited soeof its inqiry, the subomminne dm on role of otte a
Recomenda io. 9: The execuie banch sol ainlz thesysem f sbsate agencies euraged by Federal law.n
RecomendtionNet 10: Peteren'ce sheald'be given to th1s sri~ate g~nces hicle are politically responsible to the peol
Recmmedaton No. 11: Emphassahppld beplaqed on the rl of rgioal genIRSin providing telhical assistance. Suc' aences h~Ad be able to demsttethe capaeity andion cern formeeing hemeeds of the small cities they serve. To the extn possblethe shn~dhave'a demonstrated "track record" of perfom ance:Out-wheeswha-"track record" isimpossible to establish (~. a ne agncyorssinificant change in its leadership), they shouldb a leto~monsrat, teir capacity and concern through realistic plas competent. ,adav commitment of their own resources.
Tha.'Xy Ro~e'State Governments in Effectivenes-s of Local Go

wque cntutional position, the roleof the Stae Federal asitac rqirssecial consideratin Localgovements re legal creations of the StatesAnd their capact to ct N~ivey i dtermmned in Isrge measure by State decisions.Th


Advisory Commission on Intergovernmevtal Relati has described
the Mowing key characteristics of State relatimskim to their ljohtical subdivisi*ons:
They have life-and-death legalauthority over local units
and determine their boundarie&
They are the-sok source of authority loc i ruments to tackle their problems.
Tl!q alone possess legal power to intervene and to direct
localities to act in certain ways or, to end interlocal lpas e
They serve as mediators between. local units and the Fid^eral Government andbetween their local jurisdictions and
other State&
They enjoy far greater taxable resources than localities,
and have the authority to equalize resources tnd services
effectively among these units.
They have the requisite geographic scope to prqvide directly
or to establish machinery for furnishing services in urban and rural areas which cannot be administered adequately by
individual jurisdictions..
They traditionally have handled major programs of vital
concern to the social wid economic well-bein of their residents, including education,. highways, lie &%istance,
health, and hospitals..
They have the administrative structure and personnel to
offer technical assistance to local governments.
They have the opp(ntunity to play a negative role through
using their powers to obstruct, undermine, and even veto
various intergovernuental programs.
2. Governom View8 on the Need for Greater State, Involvement
Governor Hunt in his testimony before the subcommittee, made a strong case for the States to, assume a, greatly strengthened role in helping small cities 3:
The real key to meeting needs a A c-rer role
for State government mi supporting amnd gui F rural development. States can assist and have assisted small cities in a
number of- ways.,

Most States have established community service agencies
which provide a wide range of assistance to local government The use of planning and management tools by am 11 communities can be attributed partly to the technical rwk 9 ef.
forts of States. States also have taken the lead in improving
rural transportation in and between small cities.
Another service that has received attention is centralized
debt marketing. Several States now have 8 a that markd
long-term debt for local government. Services raw
preparation of bond orders to the actual sale of bonds imd this'
has been especially helpfill to small cities.

2 United States Advisory Commissions on Intergovernmental Relations The challe of LA>ml Government Reorganization (Substate Regionalism and the Federal 83_st= Volume 1111) Washington, D.C.. U.S. Government Printing Mee. 1977. p. 139
2 Testimony of Gov. James B. Hunt, Jr., May 16, hearings.

A 23
Providing ser cesis only one aspect of State assistance to
local govemments.A. number of States are pr parmg develop ment strategies to support growth in ing urban centers.
Thes6are far-reaching and sophisticated efforts that target limited public facility funds to achieve maximum develop mentimpact. Pevelopment strategies are particularly important for assisting small cities to cope, with additional growth, and they reflect a whole new policy capability and concern at
the.,Statk, level.

But we have a problem. Most of the Federal funds coming
in-to the -State are literally beyond our direction, responding to criteria or needs permi ved from a great distance away. The thoice of where to pu- t-Federal funds often is from a dikerent
perspective even when not made long distance.

So we are limited to a very few Federal programs in carrying out a development strategy. The bulk of all the Federal
Wmm it d p t dollars available are beyond any directiortowya a <1=7on goal.

Members of the subcommittee, the issue is -not whether the
States can do the job. There is no choice. The States must do the job they must play a key role in meeting local needs. This Nation does not have limitless resources. We, have to use what we have to the greatest advantage for development. That cannot-be done long distance with separate objectives guiding pubhe spending. We cannot afford a fragmented approach
any longer.
3. FederaZ Efforts to Pmvide a Greater State, Role
The executive branch is planning a greater State involvement in Y the0ocation and use of Federal development funds. In his testimony
before the subcommittee 4 Assistant Secretary Alex Mecure stated f_! tbat. it was the intent of the Department of Agriculture to involve the 8tates more deeply in the allocation of resourm to small cities. The J clainelopment plans, if any, of States and multicounty districts will be taken into amount before Farmers Home Admini ion community
4evelopment funding decisions are made.
Lwistant _ZMtary Robert Embry noted that statutory changes M
the Housing and Communitv Development Act of 1974willmake it
for States and counties to apply for community development
4. amstance on behalf of smaller cities.
Pft8i&nt Oarte708 Propogal of March 1978 for Increasing Involve.
of Sftte GOV6"WUW&
Probably the most executive branch initiative is the
PYegdentli statement in his message on Urban Policy.of March
197" policy which Applies to, small cities as well as large:
The Role Of Governewnt&-State government poli-'
cies, even more than Federal poli s, are important to the fis
A Tewthnony of Alex Mereure, May 16, hearingiL

cal andteconemicIheath of hte. SWou te their d Mtk in
a nomber ot wav inl sting taxation and ann asm
powes, 1eterr &ceth e nt of major dvelnplan
mnvestentstend apotoigthe Ainaheial drpns ~ k
welfare andeuation epnitrs
The Federal Government hea little or no control over theam
derelopmonts, ail et which early afect the economic and
fleeal health 6f cities and enanadnities.
These State responsibilities underscore the need for san
urban policy. which includes the Stateswas full and eqalbpartners. Thse eetiveness of our urban policy will be enhanced if the States can be encouraged to complement the Federal
To encourageStates to support their urban areas, I offar a
new program of State incentive grants. Thoes grants will be provided, on a discretionary basis, to States which adopt approved plans to help their cities and communities. The plan must be developed, with the participation and approval of communities within the state. The grants will be provided to the States to f inanee a poirtibn of the plan. The State incentive grant program will be administer bII" and wil provide $400 million over 2 years.
The prbgram referred to tby the President has been introduced as H..12893, "'The State community Conservation and Develogment

Recommendation N12- Legislation similar, th perpher and scope to HR. 128OS, "Th State Comnity Conservation *and Development Act" should be adopted."
VII. Executive Branch Efforts To*-Improve Deliver of*.
Federal Services to Small Cities .
The subcopamitteps hearings on small cities occed du ring a peio when the executive branel was engaged in a numbe of studies of the design and organiation of Federal raral and small city development

gress to revise the method for providing community development as sinc to smlgities, and somie programs were Bbing isorhzed
A. Watc nwov rmEsta
The Carter adiminisation has undertan several aeedies that Will result ia: recommendation, elat to snall giyplce:I pM House-directed review to idntify defciencies m programs
which caus. problems for, local public o0iC)Ils; and ()an EMXcubve Branch Reorganization Study of Lclid:.Community :Deopmeat; Programs;
The White Hrouse review, which is being conducted ont an agey-byagency basis, 'is not designed to result in a gran~didae "national rural
Re rs nt tv Kel doesiiii no concur withiiqiiiii~iiiii~ii iiiiiiiiiiii th ,i / ......o num mdat ioa. iiiiiiiii~ii~ iqi~i~~iiiii


picyt"' Rather,, this reviewphy the Domestic Poliytaff nis simd at identifying specific weaknesses in the rural program delivery system. Agencies *hose programs are to be reviewed include the Farmers Rome 4Amninismtion, the Environemental Protection Agency, theDe partannt of.i1ousing and Urban Dvelopmendt,*and the Eaonomicevelopment Adaministration.
(One of the amsinistration's reorganization studies has particular signi eance -fdr smalleities, as it may help to determine the future design of delivery systems for community and economic development programs. On June 29, 1977, President capte annoutced to the press that maorganizatin studies would be undertaken in fdur ares ideludIng Joest Md community economics development.
The''raft"' work program f or the local development study, which is Beilg conductqd under the overall supiervisian of the Directr of the Economic Derdlopment Divisiotn of ,the President's Reor'ganization Project, is to focus on six program ares. The program areas and the aaor programs and agencies to be reviewed are as follows:
(1) Busies promotion.-Where over 100 different *programs ini
-more than to different agencies provide financial and managei assistance to business.
(2) Public commnity fkeilities ideileent.-Where there are 48
-sewae-related Programs alone, dispensig about $6 billion duhough
-theeven agenexes mn five departments, two independent agences and eight rei nacmmisns.
(3) H~s. Where there are at least 17 differknt poras adm 'stte by 15 different agencies and prerseen by three separate aoverment-chartened secondary mortgageagnis
(4) Tramparedthms-Wher 60 g aalsstane progams are ihn-,
-seled throri g8h sennautonomu Oprtn diitain of the Depsitment o Transportation (DT, aa additionanewr of 25

(5) Emphyment and tang.---gere 10 agencies administr
(6 P;newn ass8istance propopms. no ding thoe of IMD PDk 'UIAh, DOT, EPA, an others.
The a jbdiv .es of the reorganizaf14a p eat are to improv e ce
eodiasti a9 ocal.and commuiy economic developmentgas to reduce Wancesar duplication and ovrap in stin respeappiit
andasivitq, n to make less pumbersoupite a ministratire atapov ture and procedures associated with these programs. A numbe aof alterntiv! & to achieving these qij ectives will be considered.
(1 rogram Complidation---Major shifts in the responsibility for co mmunitY a ocal economic development assistance among departmentsAgenes.
(2) Changes in Assianc Structures.-Alternatives. in the form a .N")md ofederal assistance-involvin such psibilities as changin te alnc etween categorica n lc rns between formula
(3) liechanismm To Improve Coordination at the Local Level.Chagesini the. role, of- multi-state State, and substte planning and re&View boilis, iinprovemients *"in te pabilities of local sovernmenits:

En cnive D o elopeet ohic tovrm&Suolse place J nomveveomnlcso.96 wihas
(cte Pras elednagecyng in the~itva administer ight pen of tetic pgamtawerelitseh codntinbeach State aunin thes, eiainderieco eqient.paigrThreenxthemesndeated waterestrcurn

stra stoardit polc resin elsoymee spato.te atvtes diida; the eHue Conpacit on4 serviced o in rwt n acn omc government thhe ptof plc the r- 9t bray2 grap. hi distriin ofs ecohoxe~ a btiiy an uli okadEo qua eeopovment-Atru19turwic als prolzesmlgrast ofl cofiacSbeten ecowtominas oTthe Deatn. of0dee qaity, and thesouea oestrain ts.amnsrto o h ofrne Aigtwo volue ofia the oartcwas sesu e Jhooeroso beadh of- n the eioxscnderwedchse.b the Sertayo rane si oftssem aoes dbtdwr:srtrinthaneooieeomn

The Doa erments f e Huigpda oftrbai lcketo'n hgo recetl bee inovedmnt studes ad podlingh rcnclat fetinglhositng ecnmirotnd deeelpeteniomta conreioa nadsoue ostintdis. k.
Accwodn ote Scol rpeoft wsiud tatemer 9811bu gvnh toeaanswer theolw questi onsdrd whiche wrepotol elce h

(1e Whatmtye of dosn n ra evelopmenta assistans ouscizes locains and typesit nee pmost Inl cte di difruro ore paraSll te need ofs largerta ite ilto
(2)rsioa Whatnwt unbvaie dat abS 3o th osngadon
usefuli to smal ce nof Ststaten the stdEil tep ionwth them folwat woulesn require sgese-tohelg-s such madate:
(1U.S Whtes Cofee enalcediNtonl d ml ite fVrl mifent final Reort Vorle Ihe nummar of Conferctes

m n.nlReports. Wahig o m D.C nS. Goveee Pring Of et4 o a :UW rs p
Reot.WsigoDCUrmn rnl fie

-- ) Wh}at it ths pae of slvarious typesof ma,11eiti with Federal programs providing developmental assistance: What -canbe done to make such funding more efficient ?
(4) What alternative ftermulaeofor the distribution of .community development,block grant funds might relate more closely to the small city needs identified in the study ?
The decond study was undertaken at the initiative of HUD Secee ibary Patricia Harris in January 197.8 tin response to criticism that HUD was concentrating too much on the problems of large cities, at the ekp ease of rural areas. Secretary Harris diretedthat the study deal tvi the following specific areas:
1. An examination of HUD's present rural and nonmetropolitan housing activity and similar programs administered by the Farmers Romhe Administration to determine the extent to which the hopiss Wae dtuplicative and what steps might be taken to eliminate any unneeessary overlap.
2. Alit analysis of HUD's present meas for delivering housing servTen to rural and nonmetropolitan' areas and recommendations as to lwiethek alt native -delivery mechanisms would enhance the effetivemDess of program delivery in these areas. &An ana ysis of present requirement relating to housing assistance
plans and community development bleck grants to determine whether the costs and burdens of these requirements are overly burdensome to smaller communiities which have few available resottres.
LA determination of whether suffidient technical and lplanning assiswne I'a ade available to rural communities to develop an understanldir g of the available HUD programs anid to develop rational land use and growth management plas, inchuding recommendatioss 'on hothe level of assistance may be improved if it is inadequate. 'A. The6 development of recommendations regarding the appopriate manner by which to assess rural and no nnetroliolitn siarea-neds with respect. to both. housing -and,- community vdevelopmgent, with t he ultimate, objective of ensuring that funding levels allocated to these breas
The report of this task force on rural -and metropolitan areas was coaqplete in July 1978 and there has been inadequate time for
-the embaeansittee to evaluate its recommnendations. However a rsory review indicates a* candid recognition of the failutret lfiUD programs to provide adequate service to small citiesband nonmetabpelitan areas. 'Thus, with respect to the delivery of housing, the report states:
Sh general conclusion of the,4askiferce is that avail
able resources either have not been.provided efficiently, or at all dlue-to (1), deficiencies, in the delivery system, and (2) a Oaiure to make full and imaginative use of existing authority sh& -res~ources. This stems in large part-from the. failure 'of Gfovernm-ent, administrative: machinery to take- into. account i64(1 adapt its procedures, -forms and communications, the capacities of these..smaller communities and rural areas and
their mode of administration and of doing business .. This--,-includes the capacities of the type of business- enterprise that ..operates in these areas as well as the capacities of the governmental entities.

While not in itelf an answer to the polm-tefotat le*a rep reents a goo dstat seekingeanswers&
a D. DEAshMaTo Or nAmRIUnURE
The enactment of the Rural Development &dt o'f, 1?S was the, culmination of several years of debate over. the proper reA6 of pheFederal Government in encourqging rural development, -ad the most eficient ways to organize the administration Of Fe eral mnal clvelepment programs. The -ability of the USDA to inspleeAt the new responsibilities and programs authorized lby the act has been a ater of continuing congressionateconer since 1972. Ma 6 of the oatn programs were placed under the Farmers Home Admistration (FmRA), whle the lead agency ..and coordinative respop ibilitias were assigned to the Ruatel Development Service. Both of these egences reported to the Assistant Sertr for IRural Development In October 1977, the Secretary of Agriulur abolished the Rurdl Development Service ad placed its funtions in the FmHA where it became a staff arm reporting to the FaxRA Administrator. The congressional' oversight record reveals continuing dissatisfaction, on the peat of theCongress with both the quantity and the quality of the FlTA staff. Three adlministrations consistently refused to increase the number ,of EmHA staff to levels authorized by the Congress
According to testimony at the subecounittee's hearings onaal cities, the Farmsers Haoae Administration is trying, new approaches to filling its role as as developmaent agency. Eirst of al, the agency will
tyto coordinate its -development activities with those of other ed:era agencies and will try to ensure that its investment dealions relte in a positive way to priorities set by substate development districts or to State development goals. According to Assistant Secrety Mercure, TailA expectsathat the States will : 2
Establish State development priorities for their feara) area
based ont local and area priorities, and then copett with us to develop joint Federal/State/local investment strategies
for meeting these priorities.
Strengthen the fiseal and institutional capacity o ftsal nomerepla govrnents so that tean pla ndt
the development Of the, Stat priorities -adi investment
If the States carry sbte responsibilities, then Fn A is comnmitted to the followingeactiones:
Farmers IHme will iork to use these state priorities a stat es as it formulates national rural development
priorites and criteria.
]Farmers Home will work to target its programs, in accord
with clearly-stated State priorities and strateies-withi
the context of our national priorities and criteria.
I Testimony of Alex Mercure, ma7 16, hearings.

w,,tht: development stratingies-will reflet mutual concers ad uilize all the available mone pare effectively.

goal ofStats ad local communities. In aditin > developing a new approach to its procedures maldn~invstmat decsions, FallA is also lbqin rearganized}.so tha

respnsib-Toprocessing and serving community facilhties, muli famly'ousigand business and industrial loan programs. Count offcesvrgl cncetrate their efforts on the farm. and home ownershp program& Ah same time that ,the field structure is being .reorga nixd, he dd taff is receiving training that will help them to mee theiFIa~anedrole in comprehensive and coordinated non metropolinunity development.
AS W noed arlier, one of the major reorganizationi efforts unde stuy b th'aministration relates to community and economic velpmet ativties. While 'this study is going on, thq Economic De ve~mef? ministrationn :and the Department of Housing and Vibin ye'lopent have been working out niew procdu tres designed' to ooilif~de an make consistent many ?f their plan ning and ro glr~nl~qliirmets. So me of the progrians involved in the ngtain incudeHU'somunmnity development entitlement, smal tie, urba de 6p~ntgeion g'atd, comprehensive planning, and tehnica agssuiO6p,1ogams; and EDA's title IX economic adjustmnent, til
pl~n am tebhniedl'assistance, and titles I and II, public work r ne of the major complaints of small cities is that they d
n tt 0i stficen s aff to deal with the 'many regulations and repotin~~~ uib iliditht accompany Federal assistance, land that var
>"'togrm even when these programs ar similar fistil Terative work between HUD and EDA should help t
Two ill wee introduced, during 1977-78 that would also makinalorlang a Fn ederal-small city relationships. The Rural C 710 ensig>rogram, which was authorized in the Housing an'
nt -To ouing and TUrhban TDevelopment to the TDepartmnt of 4644tm.[n addition, a new loan guarantee program, woukdbe autdried y te bill. The Rural Development Poliy.Act (H.R
"~~a lisWh a Rural Development Councilt deelop ana qnrehensive national rural deiveooment strategy.


Recommendation No. 13: Legislation:Ptoposing: tie: TedWbute Fe deral functions for servicing nonmetropolitan arias Aould be deferred until various current studies and reorganizations are completed and evaluate&
V111. Helping Small Cities Help Themselves'-.
Of equal importance to improving Federal assistance to small cities is motivating them to help themselves. Certainly they ar6 entitled to' a fair share of Federal funds and services. Yet small cities have, in: some ways, a greater capacity to deal with their own problem& While short on technical resources, they powRm strengths in citizen knowl,edge about community problems and resources and they have the potential for a high level of citizen participation *in decisionmalring.
This is not to suggest that consensus on public policy exists 'M' small
-cities. There are deep divisions in such cities just as there are in large metropolitan areas. Indeed, the subcommittee noted 9, recurring C11visive pattern in growing small cities between those who are intent on encouraging growth with its potential ecenomic benefits and those who wish to retain the social values theyassociate with a more rural way of life. Equally, the friction between central city and suburb frequently finds its counterpart. between the incorporated town or village (no matter how small) and the surrounding unin(nr, pqrsted areas. But in the nonmetropolitan. areas, the players and *the- lm ues am common knowledge and the opportunities for commur4c.stion promise and cooperation are greater than in the large impersonal. metropolitan areas.
The design of Federal programs as applied to small cities should take advantage of the opportunities for local decisionmaking and local initiative& Certainly need has to be an imr ortant facitor in d6terwiing who 'gets Federal assistance. But need-Aich. is generated b Wureto show local initiative and simply waitin for federal U d= should not be rewarded. Formulas and methqls of allocatin Federal assistance should have built into them a reward for local particularl low cost and modest approaches whi& can keep pro
lems from growing large.
In one area in particulax, land use planning. and controls, the n 4 for local initiatives stands out. As Dr. I-Ierrihgton Bryce stated:
Among rapidly mwlrqr cities the most common need BOMB
to be in the area of land use. That, too, makes a; lot of seose. If, you are.a rapid y growing city, you'have to accommodate increases in populati-on, you have, tounderstand that if you am to provide good quality of services, wt"r and s6wer, agood quality of streets and roads, all of these require good land um
Them is every reason to believe that small eities may* *ell'be re. peating the mistakes of large cities by permitting wastefil, spriirling
6 Representative Kelly does not concur with this recommendation.
Testimony of Herrington Bryce, May 16, beaduCL

sete4 E.In rpot ered s to by Governor Huti
was oundin INorth Carolina that the areas of, greatest population growt wer adjacent to, but outside, the boudaries of small mocorporate ciies Eypn though outside city corporate limits, these growth axes-wir be,g, what are regarded as uan densites,. (hat
at~ latpersons,per square mi .
A-h stlement patterns are wasteful. They re iysalbstantial abli a Jor.iprquiding a reasonable level of serices, but they by"TS& Pble works and utilities that are already i place. Pter Morisn ointed out that the pople who are4 settlhng in nonmetroP01ita axas are not-satisfied with rural ameknities:
Tepen le who are descending on smaJl cities and towns
and creting settlements in virtual wilderness a reas are a dif-fernt reedfrom the relafikely poor and uneducated migrants who flokba to the cities in the fir'stA half of this chiinuy. Many are, ciparatively affluent and' well-edecttd urbanites who, j- or theirr reported affection for the "'simple life," are accust~aned uban living standards. For them, the dirt road that wM Iwpicturesque in auitumi must be paved the minute spring
radntrn it: tto rutted mud. i
One ofthe''nanifestations of inadeqiuate land, uso controls, fequetlycied before the subcommittee, is the decay of downtown busnes dstricts in small, cities. Almost invariably that decay was dttibuedto the development of shopping enters beyond the bounidaris ad laying jurisdiction of small cities. Such developments will ;& he.viality. of small cities just as sprawling development has had hisipact on larger central cities. ...her ae exceptions where sall cities have used thpir own initiaivs, lusFederal -assistance, to maintain the vitality of their downtpws. Bll Lowenstein of Hudas. N. Y.4 -told how his city was 11cessull maintaining a healthy. downtown in spite of the competitz~ o sopping centers. Also, the subcommittee observed how Sarat~g..Sprng, N.Y., through a combination of commercial redevelopQieatand hstoria preservation efforts is rejuvenating the central part 4 O th ciy.The preservation act ivities are substantially aided by the W~t ax oda provisions permitting more rapid depreciation on investI ts e'deto restore historic structures. TrL o ,etroglitan areas where there is rapid population growth, tho ae we other special reasons for the development of adequate land se aing and controls:
L -Spr*U' two- and three-acre homesites rapiidly eat into the avaiabl s~plyof farm and forest lands--valuable resources the Na2.,S attrd or patterns are inherently energy ineicaient. In hfai0g on."Wieg and the City,"," the subcommittee received 641m on tht there was a close correlation between density ofettler
pdnergy conservation.
Teitmonyof Gbov. James B. Hunt, Jr., May 16, hearings.
8 Tstionyof Peter Morrison, May 16. hearings. of 8T11 Lowenatein, May 26, hearigt 11US. on~ress. Committee on Banking, Fiane and Urban Aralrs. Subcommittee on myaOA ty hearings,, September 14, 15,-16,.1977,'Wasington, U.S. GoverneM1~rIn Ofle, x97,7

emL ofto al Citesad Thei CaaiyTOGvr

Ies eaglin wthat provision of teeroermntltd146 Suchran appracnha olyenresy Inl nprgasb renemshain and e byc grspii une hc oalwmsI identify tser on elaedad polem apporaslclsltoshl

dcivediy sub-Sndtaot and regonalhogot h ain nt noeet to teah lobj cetivt thn t1eripoeet noy er bfor the scmmle ites Wnnnerplnaestelc liof capacity uldngefors whic ajrsubin lc t olw ior theouse of such agenochi.cp r in theurn Federal aprttoadmlfypora.r mf locall governbmenta cait fore h yia ml iymyro othis rortia will not atep to dalc wihed oth aeoFdrlpo neighoril craty offs.a an niae hi w edo Th Rersentamtive aknveiewes thsth a lrn Itknoa cto isgtrequtremendi onje of the tehn cal kii otii tem m R esomdtimooan .ANdo. :majo 6dra hfotahul.b


...... idii = =i oth er........ te h i i n ne::,
-oi ........ ... c i t y" ............... ... a ,ii~ iiiiiiiii' "
acoutats daapoesn pcaitegnes n ofrh opo
viealvl|f'emclcmeeceta h niiulete hm
-selves camo aifford.iiiiiii
FrmM.Adroltsi moyanitersuceiiapas ht
this t........................eiiiiiffectii v an s ou d efu th r nc
Reonzn h iritofsalctetirp bemanthr

....res itii subommtte recom ende that Fedra agnce adopt' ...

-mor.... feilpoiisadg ideie o hir rgasi omt
-politan areas. But the other side of tisin::ta ml cte utb
.............................d :::::to::::::::::de m o n str a t e::::::::::::::::::::::::::::: .............ap a c it y:::::::::::::::::::::to::::::::::un d e r ta k e::::::::::::::::::::::::: a c iv i i s c m
mesuat it tei eesndill wi:t=h temaiumdgreofsl h elp............... p ossib le.iiliiiiiiilii
Ini liiiveiriiiliifiiliiiiiliiiiiiiiiiiiiiiie b th su c i tt e ............... i an an n
the apearanc and italit of th, cit. In others eie l')

p e............................................................................................................................................sii o meiiiiiiiiiiid e r aliilii

more acceptable.
While the Federal Government manobebltoIrqi rationalization of political jurisdiction c onomwt ailnL ecnomic realities of the urban s'ettinglti aal f sn h cro aid stick" approach to encourage sual, tos Recommendation No. 16: Federalporm hudrqiea
last a good faith effort to consoled achieve greater efficiency in th dusistance.
*Representative Kelly does not concur with thli eimiaou

We do ot hae a national policy for the city that will haeunfr
o suchpol eists because none is needed. The wod refl of pol w a would jump over the Capitol, Domecolate
A licy for citi, including small cities,
beiaus. he oliy.needs Tor individual cities have fartomc
Ther axemanylegal -legal barriers to Federal interferneiloa
It isasy eta for the Federal Government to attmtt d minste loal overnmnt when theft consensus runs so heavl gis theFedralGovrenaths ability to administer well eventeprl Feerl untins I is not logical to improve managemetbrun ingove cotro to a known bad manager.
Eachindvidal coummunity needs a policy *and thedeasan presursta woul shap the policy are known to thepolwh woud b sujeted to i. The are not known to some asiatoth poliica an obecrtic thoein Washington or anyn lei
Thejuiffabe-imritatilow ef th& nasil cities, during the haig n elswhrefalsroughly in the following categories: Thee ae te ities whose people pay taxes to the Fedea Small~ u wel ,~ stensiities,agruggling to, live, within. hi ugt see oreandm.*e Federal pregramns designed aron4rterata favorite ig uban inner cities, there declinin g cities (iftfeeiadf fernce, te ties in the Northeast and North-Centralpreo h Tnied tatsand cities that are-under the most rigid -.1rm te cnsiera-tion of what should be done for the ae ra inner ciiean the considerationn of the ability of thecomyt squadermontyF pursuing, poliocis Which, can reasonable eepce I Pt s e cay tmporary political advantage and, result i uefca
Imeic thtedig, large and small, mi hsds tres beami th reason for their existence and! their formrsrutr Fanc stpped building the Maginot Lin
It annt ffor 'to squander limited and
lutita rcontrcting cities to meet .&-need Which is pandah tim, sre: the people anid ouir economy, any noeta h
mlitarily defend France by reconstructingthMaio Line Tims hae changed.


Much of this change that has been brought about i the old industrial areas of the Northeast and North Central States came about through local mismanapment and political pre&ures, largely contributed to by the dominance of public service, construction and industrial unions.
'Wage lewl'sAi'' these du" t6 CM,
levels compared with other parts of the country and the world after 1-1945.
'The public service uniions.set a tone of local g6ve'r'ntaIent*snd WINsured politicians for*.more ambitiousbuildifig pwjeet iandAerviee programs with Inore, and, more wages, tond. more wid moi*-Mfi' All'
of this to a large.extent was.responsible for the finaticial 69kpse of 6ese cities. At the sime tim(, "hbrrendo4s' tax i rkt6g, aifta hftvyc utility .costs add6d to the burden Gn industry ind tho privuto sector in the direct costs they had to pay and, the pressures exerted by-their lemployes and their'unions.
This constituted the destructive eye e that led Iiidustry 16 fle6 ffidge. areas and the Privato sector t6i abindon ITopelrtj valtwdin the billions:of dollars--leaving th6 icitiest0:fiA* iisingtdsts and filing ttix in., P ;a
rates. Billions (it dollars lant pr6ductlon in ithe fp nn pf hasionlid' ent -to foireioi coo, entries: aAd --)Dtli of the expahded- capuity: w 6t Parts
United States.
Wh#n the diistri and e,6m mercial.- reag6ng Our' ih&-* is6rice of thtse 6ties erb &A.; we zvrived -'gt -the ptesent,-s'ittiptidn'f
-v t 'p litidal'
Every suggogtion for ,a Federal urban 'Polic 19 a 61110W
gesture beoaaso it does not addres's the'reitsioti f 6rIItY46Ajjtres8 a6ddecvThe beneficial hig4water mark for these prograips, is the-64hbliWinient of a tempomry sonse of j,6 ihd prosperity.,, tMiil. sit, ledst'after the next election. The'long-raiige*ee etk'iLstovmrs en'tht"fihtin ial: e, dition of% I government and egtabligh momi tArgetk' 'fot,.the 'dib thwtiveforces that de.molish6dwhitt 01 fo-re.
The best direction is for the FederalGoverniAdAVW#e6*tt .t tbe businks of 'urbaI'vTostiietieg) EM"d, leave -the-'snWIlFbitieis to theitArtiggle and the: kirban arpms'to their adjustmwis_ A, the 're'ftlfzfttiori that the people i1i both, iplaN s wiII iolv6 theikr&3 'tivepiobl&mkili ky ,pec;
th at TAakes'sensoi.' All will, have hiore oney fot tli6 Pr6cesg be6rkuse Washing'ton wfitnot be drainingtheir loceJ &4,%ts to fu6l, a systeth 'of programs that doret,- vork.':,,
The alte nativeis 6 ba.I= ese Federal exp;enditt*"'orf 'Ah Ouffa le basis among all.- communities* and absolute avoid *eightedandwifiir criteria.
it is uttej nioWense, to UsOfy NV6ritt 01* k*dn Of tw Country
over another on th 6 grounds th4tthei' need ig, gt"Wbr uh thkenea is caused by an act of God. Otherwise, the Fedeml G#*0jftWe:q coui-ages, local gpirTraents lid, f il6etitft ih-', ha*- lytm ohs with the assurance"that. thAl", will b :Wled Alfl *ffoh th6y jWe
oti 6 -1 "'d 1 1'The mone7 in &e Vd7eQ iieutirybel 198 td eierymt ] 0
us should be willing to;help, arms of dikffti WhW thitt WAftM- is irbposed by foremboond the;eontrolof thei edPI6ItUb*t*d!t6 iL 'But we canli give frea umranee tomdi-VidualaVU deh*-& their houses.

m m ~ i iiiiiii~iiiiiiii~iiiiiiii~~iiiiiiiii~~iiiiiiiii~~iii~iiiiiii~~~~iiiiiiiii~i~iiiiiiiii37iiiii~iiiii
Snil itel arig twns MIII] Wws, ad mnufctuing
ton vrteUiedSaeadtruhuthsoy aewterdadde steeooyta rae hmatrd
Th hp fcte vrweeshudb eemndb urn
need an prssues. he ntelignce o gidethe is ocaly resnt.
Th fiacnlil eaalal npoprint tesudes fte
loay eie rga n h bliyo h omnt oafodi.


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