Box 7, Folder 10, Document 41

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1819 H STREET, N. W. September 20, 1968



Housing Funds. Disappointing news came out of the con-
ference of House and Senate Appropriations Committee members
that reached a decision on HUD appropriations September 18.
The Senate had approved much more generous funds than the ;
House, but in conference the Senate gave in to a large extent
and the final figures were barely above the original House

Last Year's Fiscal 1969 Amount Below
Appropriation Budget Approved Budget

(in millions of dollars)

Urban Renewal

(Fiscal 1970) $750. $1,400. $750. - $650.
Urban Planning 45. 55.6 43.8 = ihee
Model Cities | 312: 1,000. 625. —- 375.

(Program Grants) (212) (500) (312.55 (-187.5)

(Urban Renewal) (100) (500) (312.5) (-187.5)
Urban Research 10. 20. LL. = 3:
Urban Information,

Tech. Assistance 2.2 De 0 = Sie
Rent Supplement

Contract Authority 10. 65. 30. = 35.
Fair Housing == Ld ed: 0 = ad

The National League of Cities protested to Congress September
19 that the cuts in housing funds were "incomprehensible," but
the House accepted the, conference recommendations without dis-
sent. The Senate also is expected to accept the figures next

Despite the fact that the fair housing law was enacted
only last April, the Appropriations Committees said HUD and

TELEPHONE: 202 293-1530 of 23> Gi)

other agencies already had enough personnel working on civil
rights activities. The civil rights-fair housing law made HUD
responsible for administering the fair housing requirements,
which are to apply to all housing except single-family homes
by the end of 1968. One year later, most single-family
housing also will be covered.

Report on the Cities and Federal-State Financing. A
major, two-volume report on the problems of the cities and
' federal aid to states and local governments was released
September 19. It was issued by the Advisory Commission on
Intergovernmental Relations, a bipartisan, high-level group
whose membership includes governors, mayors, federal cabinet
members and Congressmen, state legislators, elected county
_ officials and private citizens.

In-depth case studies were made of 12 central cities and
their surrounding areas. Among the findings were:

Tax burdens are growing faster in central cities
than in their suburbs.

Local taxes in central cities, measured against
personal income, average more than one-third
higher than suburban taxes.

Suburbs spend $135 more per school child than do
central cities, but the cities spend $100 more
per capita than do suburbs for such services as
police and fire protection and sanitation.

The report found an untapped potential of $20 billion
annually in state and local taxes and the Commission emphasized
that all states need both a strong sales tax and a strong in-
come tax. Proposals for reform of state and local tax systems,
particularly the property tax, were spelled out.

Sharing by the Federal Government of Some of its tax
revenues with the states, on a per capita basis adjusted for
variations in the states' own tax efforts, was recommended,
but only as part of a revised system of federal grants. The
Commission proposed that grants for broad functions replace
the current system of parceling out money for special, limited
programs. It said the present federal aid system was suffering
from a progressive “hardening of the categories." But a few
areas Of nationwide concern, such as pollution, should con-
tinue to receive earmarked funds (so-called categorical grants).

Single copies of the report can be ordered from the
Advisory Commission on Intergovernmental Relations, Washington,
D, Cs 20575,

Public Service Employment. Senate action has again been
postponed on the Public Service Employment amendment that
Senators Clark, Javits and Prouty hoped to present. The bill
to which the amendment was to be offered -- an extension of
a minor part of the Manpower Development and Training Act
(S. 2938) -- may not be called up for Senate action at all
this year. The major sections of MDTA do not expire until
next year.

Education, Labor and Antipoverty Funds. Final figures
for education, manpower training and antipoverty program
appropriations are not yet settled. Members of the House and .
Senate Appropriations Committees have had one conference on
the Labor-HEW bill and will meet again September 26. For
differences between the original House and Senate appropriations,
see Appendix B of the September 13 Action Council Legislative

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