STATE AND LOCAL FISCAL ASSISTANCE ACT OF 1972

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON

GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES

NINETY-SIXTH CONGRESS

SECOND SESSION

ON

H.R. 1771

TO AMEND THE STATE AND LOCAL FISCAL ASSISTANCE
ACT OF 1972 TO PROVIDE INCENTIVES FOR THE FUNDING
OF EDUCATION BY MEANS OTHER THAN PROPERTY TAXES

H.R. 2291

TO EXTEND FOR FOUR FISCAL YEARS THE AUTHORIZA-
TION OF APPROPRIATIONS FOR THE STATE AND LOCAL
FISCAL ASSISTANCE ACT OF 1972

AND

H.R. 2698

TO AMEND THE STATE AND LOCAL FISCAL ASSISTANCE
ACT OF 1972 TO TERMINATE THE STATE GOVERNMENT
SHARE OF FUNDS ALLOCATED TO THE STATES BEGINNING
WITH FISCAL YEAR 1980

MARCH 19, 25, 26, 27; APRIL 16 AND 17, 1980

Printed for the use of the Committee on Government Operations

COMMITTEE ON GOVERNMENT OPERATIONS

JACK BROOKS, Texas, Chairman

WILLIAM M. JONES, General Counsel
JOHN E. MOORE, Staff Administrator
ELMER W. HENDERSON, Senior Counsel
JOHN M. DUNCAN, Minority Staff Director

INTERGOVERNMENTAL RELATIONS AND HUMAN RESOURCES SUBCOMMITTEE L. H. FOUNTAIN, North Carolina, Chairman

Beame, Abraham D., Chairman of the Advisory Commission on

Intergovernmental Relations; accompanied by Wayne F. Anderson,

Executive Director...

355

Bonsal, Richard I., commissioner, and director, Department of Public
Works, Montclair, N.J.

750

Cantor, Arnold, assistant director, department of economic research,

American Federation of Labor and Congress of Industrial Organi-

zations; accompanied by Robert McGlotten, associate director,

department of legislation---

Conway, James, mayor, St. Louis, Mo., representing the National

League of Cities..

729

265

Corrada, Hon. Baltasar, Resident Commissioner of Puerto Rico__.

Cosgrove, John E., director of legislation, public employee depart-

ment, American Federation of Labor and Congress of Industrial

Organizations.

566

741

De Good, Douglas, mayor, Toledo, Ohio, representing the U.S. Con-
ference of Mayors..

281

Edgar, Hon. Robert W., a Representative in Congress from the State
of Pennsylvania___

44

Fazio, Hon. Vic, a Representative in Congress from the State of
California__

577

Fountain, James R., Jr., city auditor, Dallas, Tex., representing the
Municipal Finance Officers Association..

193

Francois, Francis B., councilman, Prince Georges County, represent-
ing the National Association of Counties_

314

Ginsburg, Woodrow, director, research and public policy, Center for

Community Change--

666

Holland, Arthur J., mayor, city of Trenton, N.J---

801

Hughes, Harry, Governor of the State of Maryland, on behalf of the
National Governors' Association___

420

Jones, Hon. James R., a Representative in Congress from the State
of Oklahoma..........

17

Kindness, Hon. Thomas N., a Representative in Congress from the
State of Ohio____

544

Litwin, Theodore, first selectman of Litchfield, Conn., representing
the National Association of Towns and Townships... -

Lucy, William, secretary-treasurer, American Federation of State,

County, and Municipal Employees; accompanied by Anthony

Patrick Carnevale, director of legislation___

Marlin, Dr. John Tepper, president, Council on Municipal
Performance-

334

723

229

Miller, Hon. George, a Representative in Congress from the State
of California..

585

Miller, G. William, Secretary of the Treasury, U.S. Department of

the Treasury; accompanied by Roger C. Altman, Assistant Secre-

tary for Domestic Finance; and Robert W. Rafuse, Jr., Deputy

Assistant Secretary for State and Local Finance---

856

Statement of-Continued

Minish, Hon. Joseph, a Representative in Congress from the State of New Jersey

Mottl, Hon. Ronald M., a Representative in Congress from the State
of Ohio...

Nelson, Hon. Bill, a Representative in Congress from the State of
Florida...

Panuzio, Nicholas A., president, Panuzio Associates, Bridgeport,
Conn., on behalf of the U.S. Chamber of Commerce; accompanied
by William D. Kelleher, associate_director for community and
regional development; and Paul A. Reardon, economist
Ritter, James P., a representative of the Pennsylvania House of
Representatives, on behalf of the National Conference of State
Legislatures__

Rubin, Florence R., urban policy chair, League of Women Voters of
the United States..

Sklar, Morton H., revenue sharing project director, Center for Na-
tional Policy Review, Catholic University Law School--
Solomon, Sandra, director of government affairs, National Urban
Coalition; accompanied by Philip M. Dearborn, lecturer and con-
sultant to revenue sharing reform project, Howard University---
Staats, Elmer B., Comptroller General of the United States, U.S.
General Accounting Office...

Page

749

541

28

802

492

629

712

675

85

Taylor, William, director, Center for National Policy Review.. Letters, statements, etc., submitted for the record by

594

Altman, Roger C., Assistant Secretary for Domestic Finance, U.S.
Department of the Treasury:

Comments on testimony by Center for National Policy Review- 899-907
Information concerning noncontiguous States. - -

896

Beame, Abraham D., Chairman of the Advisory Commission on
Intergovernmental Relations:

Potential grant consolidation and number of grants involved----
Table 1.-Revenue sharing entitlements in selected central cities
and their suburbs___.

364

356

Table 2.-State share of total State-local tax revenue (frequency
distribution of States) --

358

360

Table 3.-State share of State-local expenditure from own funds.
Bonsal, Richard I., commissioner, and director, Department of Public
Works, Montclair, N.J.:

April 15, 1980, letter from Governor Byrne re distinction between
townships and municipalities._
Prepared statement____

800

752-798

Cantor, Arnold, assistant director, department of economic research,
American Federation of Labor and Congress of Industrial
Organizations:

Table 1.-State and local government outlays for new construc-
tion___

730

Table 2.-Unemployment by selected State and metropolitan

areas.

732

Table 3.-Federal grants to States and localities---
Table 4.-State share of total State-local tax revenue.

734

739

Table 5.-State share of State-local expenditure from own funds.
Colby, Joseph, supervisor, Oyster Bay, N.J.: Prepared statement. 376-381
Conway, James, mayor, St. Louis, Mo., representing the National
League of Cities: National GRS survey totals..

737

272-273

Corrada, Hon. Baltasar, Resident Commissioner of Puerto Rico:
Federal aid to State and local governments-1978-
Income taxes_.

568-569

571-572

State government tax collections and excise tax-1978_.
Dearborn, Philip M., lecturer and consultant to revenue sharing reform
project, Howard University: Paper entitled "General Revenue
Sharing Audit Requirements".

574-575

676-702

DeGood, Douglas, mayor, Toledo, Ohio, representing the U.S.
Conference of Mayors: Conference of Mayors' 100-city survey 282-308
Edgar, Hon. Robert W., a Representative in Congress from the State
of Pennsylvania:

Funds passed through to local governments..
Prepared statement..

80

48-55

Letters, statements, etc.-Continued

Fazio, Hon. Vic, a Representative in Congress from the State of Page California: Prepared statement..

823-852

580-584 Fountain, James R., Jr., city auditor, Dallas, Tex., representing the Municipal Finance Officers Association: Prepared statement. 202-228 Fountain, Hon. L. H., a Representative in Congress from the State of North Carolina, and chairman, Intergovernmental Relations and Human Resources Subcommittee: Additional material supplied for the record__ Francois, Francis B., councilman, Prince Georges County, representing the National Association of Counties: Prepared statement... 318-333 Ginsburg, Woodrow, director, research and public policy, Center for Community Change: Prepared statement... Hammerschmidt, Hon. John Paul, a Representative in Congress from the State of Arkansas: Prepared statement.___ Hughes, Harry, Governor of the State of Maryland, on behalf of the National Governors' Association:

668-674

588-593

Information concerning severance taxes..
Prepared statement.

491

428-479

Hyde, Hon. Henry J., a Representative in Congress from the State of
Illinois: Prepared statement..

382-419

Jones, Hon. James R., a Representative in Congress from the State of
Oklahoma: Prepared statement..
Kindness, Hon. Thomas N., a Representative in Congress from the
State of Ohio:

26-27

House bill concerning revenue sharing.
Prepared statement.-

547-553 557-565

Litwin, Theodore, first selectman of Litchfield, Conn., representing the National Association of Towns and Townships: May 6, 1980, letter to Chairman Fountain, from Barton D. Russell, executive director, NATAT, re how many towns or townships are inactive units of government..

349-351

Luken, Hon. Thomas A., a Representative in Congress from the State of Ohio: Prepared statement-

64-66

Marlin, Dr. John Tepper, president, Council on Municipal Performance: Prepared statement..

233-263

Marshall, James F., executive director, Assembly of Governmental
Employees: Prepared statement.........

536-539

Miller, Hon. George, a Representative in Congress from the State of
California: Prepared statement..

580-584

Miller, G. William, Secretary of the Treasury, U.S. Department of the
Treasury: Prepared statement...

860-869

Mollohan, Hon. Robert H., a Representative in Congress from the
State of West Virginia: Prepared statement.___.

72-76

Nelson, Hon. Bill, a Representative in Congress from the State of
Florida: Prepared statement..

41-43

Panuzio, Nicholas A., president, Panuzio Associates, Bridgeport,
Conn.: Prepared statement. - -

806-821

Pashayan, Hon. Charles, Jr., a Representative in Congress from the
State of California: Prepared statement...

57-62

Railsback, Hon. Tom, a Representative in Congress from the State of
Illinois: Prepared statement_ _

67-69

Rattley, Jessie M., president, National League of Cities: Prepared

statement._

267-270

Ritter, James P., a representative of the Pennsylvania House of Representative, on behalf of the National Conference of State Legislatures:

Prepared statement..

525-534

Recommendations concerning categorical grants____

500-516

Rubin, Florence R., urban policy chair, League of Women Voters of the United States:

Prepared statement..

658-665

Report entitled "Citizen Participation and General Revenue

Sharing, 1976-80"-

631-656