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April 28 , 1969

MEMORANDUM To : Col . Malcolm Jones From: Dan Swea

Attached is a copy of a draft position p per establishing the Nation l Urb n Coalition's role in hou ing. I would

OS :fy

ppreciat

any comments you may hav •

�April 28~ 1969

Mr. Duane Beck Exe cutive Dil'ector Community Council of the Atlanta Area, Inc. 1000 Glenn Building 120 Marietta Street, N. W . Atlant , Georgia 30303 De r Duane: Attached i a copy of a draft position paper establishing the National Urban Coalition's role in he 1th. I would appreci

ny comments you or your coll

hav . Sine · rely your ,

Dan Sw at

DS:!y

gues m y

�The Urban Coalition

1815 H Street, N.W. Washin gton, D.C. 20006 Telephone : 347-9630

CHAIRMAN: John W. Gardner CO-CHAI AMEN: Andrew Heiskell/ A. Philip Randolph

Apri l 1 7 , 1969

The Honorable Ivan Allen, Jr . Mayor of the City of Atlanta City Hall Atlanta, Georgia 30303 Dear Ivan : At the request of the Executive Committee tle staff has underta ken preparation of position papers in each of the major substantive areas which concern the Urban Coalition. I am enclosing for your information papers on housing and on health which have been approved by the Executive Committee. As a general rule the se papers are r eviewed by representative task forces or ad hoc committees and then submitted to the Executive Committee for final approval. Other papers are in the process of prepar_a tion.

Sincerely,

Peter Libassi Executive Vice President

cc:

Mr. Dan Sweat

,,

J

�duanc w beck

�C C A A

ommunity ouncil o:f the t anta rea inc.

EUGENE T. BRANCH. CJrnirm,m of thit ffr,,ll,1 of T)lrr.·,.: tor.\

CECIL A LEXANDER. Fii't! Chairm,m JOHN IZARD. Vice Chai rm, w MR S . THOMAS H . GIBSO N. S,:cr<lar)' DONALD H . GAREIS.

DUANE

w.

ON_J;; THOUSAND GLENN BUILDING, 120 MARIETTA ST., N . W .

BECK.

lrca1ur,:r

Exe,·uri,·,· Direcror

ATLANTA, GEORGIA

30303

TELEPHONE 577-2250

May 6, 1969

Mr. Dan E. Sweat, Jr. Director of Governmental Liaison Office of the Mayor City Hall Atlanta, Georgia 30303 Dear Dan: The draft position paper on health by the National Urban Coalition is, in general, excellently put together. The statistics, insofar as we are specifically familiar with them, are accurate. The listing of problems affecting the poor in different ways or in different degrees as compared to the non-poor, is essentially the listing our Comprehensive Health Planning Project has been gathering together. The listing of possible solutions or ameliorations is quite comprehensive. However, several such solutions are presented as though their efficacy had already been established, such as the use of neighborhood health centers, the extension of group practice, etc. These must be, in fact, the objects of careful study, in which both objective and subjective factors need to be included. A small quibble would seem in order for the first few pages which seem to equate being black with being poor. I realize this is because statistics are more readily available comparing the health conditions of Negroes and whites than comparing the poor and non-poor, but this could be remedied in the final edition of the paper. In the concluding sections, the emphasis is clearly on the poor in general, as is most proper and effective. The authors of this paper obviously know how to marshal their evidence and how to present it effectively to make points ~ There is little doubt tha t this is a valuable resource doc t, and the promised "Ex for Ac tion" should be even more useful.

DWB : j

�'r

Revised Draft:

3/26/69

POSITION PAPER - HEALTH Urban Coalition Roles in the Health Field BACKGROUND While no one wants to be sick, among the desperate needs of the urban poor and disadvantaged, seeking good health, including practicing preventive medicine, will not be perceived as a very high priority.

They find as more compe lling needs, jobs,

the opportunity to own a business, more educational opportunity and better housing.

Since without good health, daily functioning

in holding jobs , running households, attending school and the like, is

di f ficult, i f not i mposs i ble,

v a rious kinds of health s ervices

are a necessary condition for the poor to function with any adeq uacy a t work, at home and in th e ir communiti e s . The r e is much evide nce o f the dep lorab le health sta tus of the u rban poor. abou t

" Poor" refers to al l those families, including

25 milli on indi viduals whos e income f alls below the commo n ly

a ccepte d g o vernment standard t h at would pro vi d e adequate f ood , clothing, and shelter and medical care.*

Th e dispropo r t i o nate

  • of an estimated 45 million poo r people, half live in l a rge

metropo litan areas. Ano ther 25% o f this t o tal l ive i n c o ncentrations of population but non-metropolitan areas. Our primary concern is with the improvement of the health services in the cities that serve at least 2 5 milli o n Americans.

�- 2 prevalence of ill-health among the poor, minority and disadvantaged groups is shown in many ways: --Death comes earlier to the poor.

Life expectancy for

the non-white is 7 years less than for the white. --Death is a more frequent visitor to poor mothers and infants.

Non-white mothers die in childbirth 4 times as frequen-

tly as white mothers.

Infant mortality is twice as high among

the non-white as among the white. --Illness is twice as frequent among families with annual incomes of $2000 or less.

There is 4 times as much chronic

illness among these families, twice the number of days of resticted activity, a third longer hospitalization. --Tuberculosis and cancer of the cervix is found twice as often among non-white urban residents as among the white. --Visits to doctors and dentists, despite the obvious greater need, are less frequent among the urban poor.

Children under age

15 average half the doctor visits in families with incomes under $2000 compared with children of the same age in more affluent families. --Preventive services are not received by the same proportion of poor children as they are by the more affluent .

Only 8 . 6 % of

white children have no immunizations compar ed with 22 . 5 % of nonwh ite children . Ex i s ting health se r vices delive r y sys t ems do n o t r eac h all of the urban p oo r .

Me dic al 9are i s ge n e r ally p r ovi d ed in c l inics

�-

3 -

where available, generally over-crowded, at inconvenient hours, understaffed, and run as categorical units: clinic, heart clinic, arthritis clinic.

i.e., diabetes

Care is episodic, focused

on emergencies rather than continuous and comprehensive, with little if any attention to preventive services, or health education. There is little or no effort to reach those who need care, but lack motivation.

There is little if any follow-up, coordinated control

intake, or referral procedures. Where private doctors' offices are the source of care, high costs deny needed services to many.

While Title XIX (Medicaid)

has been in effect for a number of years, not every State has yet participated, and even where the States have, legislative ceilings both Federal and State have . imposed stern limitations.

Less than

9 million people altogether in the country are covered and able to take advantage of the program.

This means that for the other mil-

lions of the poor, the doctor's bill may strongly deter their seeking care. In addition, the clinics and doctors offices are not available to all .

Many inner city neighborhoods are far from where hospital

clinics were set up a generation or more ago; doctors have moved to the more affluent suburbs; public transportation from many of the inner city neighborhoods is lacking , insufficient or e xpensive . The shortage of health manpower gene r ally is well - known , and the sho r tages of phy sicians and nurses , and oth e r health personnel have b een well p ub l i c iz ed .

�-

4 -

The problem of accessibility of health care facilities is compounded in those instances where governmental and private agencies and institiutions have failed to reorganize to meet the personal health needs of the poor.

In addition to the fact that

facilities are often absent, obsolete, or obsolescent, inadequate in scope of service or availability temporally or geographically, emergency services are difficult to obtain, inadequately staffed, qualitatively inadequate. Environmental health needs are only minimally met. lems of air and water pollution are largely ignored.

The prob-

More personal

env\ ronmental needs such as damp, cold crowded housing are widespread among the poor. supplied.

Garbage and waste disposal is inadequately

Rats abound, as do other pests.

Most of such conditions

result from failures of local policing and supervision. Federal aid does not serve local health agencies effectively . In the past five years, a spate of Federal legislation has been enacted and the amounts spent by the Federal government in the health field have b e en tripled .

At the same time , because o f t h e

multiplicity of funding sources and the comple x ity of approach , i n c l u din g t he p r oliferation

of pl a nn i ng bodies , local units we r e

a n d are un abl e t o tak e ful l o r even p a r ti a l adv an t a g e of t h e r e sources availab l e.

Fu r the rmo r e , the n e w l e g i s l ati on l o ok ed t o

mo dificat i on o f the l ocal o rganiz at i o n and n e w me thods f o r the de livery of h e alth services that existing service agenc i es were completely unprepared to undertak e .

�-5Hunger and malnutrition can be both a concomitant to illness or a direct cause of it.

Malnutrition is known to interfere with

proper growth of the fetus in the mother during pregnancy, with the health of the pregnant woman, and is responsible in some degree for the higher maternal and infant death rates among the poor.

Malnutrition is known to be associated with improper develop-

ment of the growing child physically and mentally, and is responsible in part for the increased illness among the children of the poor, their learning difficulties in school, their later failure to find adequate employment and in adult life, their increased chronic illness. (Some 25 million . . people must be counted among the poor and the

near poor, yet nowhere near that number qualifies for, or lives in communities that operate, Food Assistance Programs.

Only about 8

million actually receive food assistance, through commodities distribution or food stamp programs.

Commodity distribution has

been attacked as nutritionally inadequate, culturally unsuitable, and logistically impractical .

Food stamp programs are

hedged about with requirements of time and place and quantity of purchase reducing their coverage .

School lunches are not free

to millions of children who cannot purchase them even where they are available.

Some districts specifically e xc lude families on we lfare

from free s chool lunches for t heir chi ldr e n.

Hundreds o f counties

where desperately p oo r people live have no food programs at all .

A

study of welfare food cash a llowance in a report last year from HEW demonstrated its inadequacy even for the poorest of the poor who

�-

qualify for welfare aid:

6 -

the food prices are based on 10-year

old costs, or else the State or local welfare payment is only 18% or 50% of the State's own admitted level of need,. KEY ISSUES The health of residents of the inner cities cannot be served b y health programs alone.

Education, including health education

and nutritional education, improved housing, more and better skill tra i ning, finding and retaining jobs, are integrally related needs. However, as already stated, significant and substantial progress mu st be made toward meeting each of these needs, but those ends wi ll n ( t b e a chie v e d unle ss simultane ously p r ogress is made toward pro v iding more adequate health services. To achieve the progress th a t wi ll b e tter conditions in t h e ci tie s and wi ll reduce t e ns i ons i n urban c e nters requires re a s s essment o f responsibilities to be borne by the various elements involved in deli v e r ing medical care services : What res ponsib i l i t ies can the privat e practiti oners o f me d i cine assume f o r i mpr ovin g the hea l th o f the urban p o or. a)

For loc a t i ng offi c e s accessible to the poor , and us ing

non- profess ional aides from a mo ng the poor t o serve t h e p o or in thei r offices'? b)

Fo r limiting the char ges wh i ch deny medi cal care t o many?

c)

For reaching out t o the needy, rather than passively wait -

i ng to serve?

�-

d)

7 -

For looking toward group and team services as a pattern

of practice? What responsibilities must government assume for improving the health of the urban poor? a)

For expanding the supply of trained health manpower and

stimulating the use of new and more imaginative combinations of health workers to increase physician productivity? b)

For providing needed health facilities, emphasizing

interrelated institutional needs? c)

For assisting individuals to meet the costs of essential

medical care? d)

For establishing goals and priorities in health services?

What responsibilities must hospitals and medical teaching centers assume for improving the health of the urban poor? a)

For developing a full spectrum of institutional services?

b)

For modernizing educational opportunities to increase

their productivity, and recruitment policies more applicable to the poor? c)

For outreach services and programs beyond their walls?

d)

For continuing education?

What r esponsibilities should business assume for improving the health of the urban poor? a)

For el i minating ai r and water pollution?

b)

Fo r improving e x isting housing c ondit i ons ?

�-

c)

8 -

For using their influence in Board membership of

voluntary and public agencies to facilitate needed change? It has become increasingly clear that the absence of representatives of the community in the councils and committees that de cide on policies, devise plans and programs and carry t h em out, is a serious flaw and probably contributes heavily to the failure or inadequacy of existing health programs.

Priorities and alloc-

ati on of resources cannot be appropriately assessed if not r e lated to the community of discourse, as well as professional considerations.

This is true of the poor, of all minority groups,

and even more so where profound cul t ural and language dif f ere nces exi s t.

Th e involveme n t of poor wh ites a nd poor blacks i s e ssen -

tial i n decision making on b e n lth planning and programs, the involve me nt o f Spanish speak ing people i n Mexican-Ame rican a nd Pue r t o Rica n commun i ti es , t h e i n v o lvement o f Ind ians i n t heir areas of residence. POSITIONS The exi stence of the Urban Co aliti on i s based on the belief that concerne d ci tizens wi sh to c o ntri b u te t o t h e pro c es s o f cha nging instituti ons whe re t h e e v i dence of t h eir in a dequacy i n dealing fairly and justly with all citizens is demonstrable.

The

failures of the health service system to deal fairly and justly with the poor is demonstrable.

Change in this system will require

painful readjustment, but is long overdue.

It will not be enough

�-

9 -

to recognize the defects in someone else's operation.

Sacrifice

of traditional modes of thought and behavior will be expected in one's own part of the whole.

Recognition on the part of each element

involved, of his own deficiency is basic to change.

Professions

will be asked to re-examine their patterns of practice, reim-bursement, recruitment into training, and the training itself. Institutions will be asked to review the services rendered, the staffing relationships, the interaction with other institutions, independence and responsiveness to community need.

Governments will

be asked to investigate their allocation of funds, evaluation procedures, program decision making and coordination with non-public bodies .

In every instance the expert must expect to be questioned

by the "beneficiary", or his advocate, in this case the sufferer from the deficiencies of the system, and r e ply as to wh e ther his action or position is to benefit his narrow interest or the larger goal. Aware of prevailing health conditions in t h is country's metropolitan centers, and the d r astic effect of these condit i ons on the quality of l i fe in the inne r cities , the Urban Coalition b el i eves that : 1.

Effo r ts mu s t be r edoubled in each city to mak e it possible

f o r a ll cit iz e n s to h ave access to modern medica l care.

Thi s wil l

require t ha t : a)

Ea c h c ommuni t y, wi t h t he aid o f Fede r al a s si s tance fo r

"comprehensive health planning", sho u l d diagnose available health

�- 10 -

resources and identify the areas and the groups for whom medical care services are most needed and least available; b)

Coordinate existing services so as to eliminate dup-

lication and make more efficient use of resources; c)

Initiate programs where now lacking, or introduce trans-

portation where required to offer access to health services; d)

Extend existing services, particularly making clinic

services available at opportune times; e)

Involve community residents in planning and delivery of,

and outreach services, particularly use of the poor in reaching the non-users of care. While no single method or plan will fit all communities, no potential opportunity must be overlooked.

More convenient clinic

hours, b etter transportation, more facilities nationally interrelated, more effici e nt use of Federal a nd o ther public f unds, more realistic use of staff available and production of necessary manpower locally should all be explored. 2.

Concentration on improvement o f special programs with

particular relevance to the needs of poor people.

Here action is

n eeded on the part of all re l a ted health agencies to extend and improve prenatal care and infant care services, school health s e rvices, cas e- finding of handicapping conditions and coordination of health service to treat orthopedic handicaps, provide glasses and other appliances.

Major emphasis must be to improve mental

�-

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health services and community programs for care and rehabilitation of the mentally retarded and emotionally disabled, returning them to homes and jobs as quickly as possible.

More home health care

is urgently needed. Family planning efforts must be intensified. For all health services related to children, for example, the school can be used as a center for identification of cases, provision of care, and community involvement in health care. ·This will require a new focus on the part of granting agencies, planning groups and health service agencies.

However, the school is where

the children are, and where mothers can be reached.

While the

present turmoil in education might be prejudicial to adding this concern to the already complex discourse, it may also offer a readymade v ehicle for change in health services.

It deserves serious

consideration. 3. food.

No child should go hungry. No adult should be without needed To ensure these ends will require :

a)

Consolidation of local resources to eliminate hunger. Every

community must have a supplemental f ood program , and a cas e- fi nding prog r am to identify a ll families and indi v iduals whose resou r ces are in suffi c ient to provide them with the minimum required basic sta ndard nu t ri men ts . b) Exi st ing

Fede r al aid should be ut i l i zed to the fullest .

That wil l n ecessi t ate t he shar i n g by gove rnmen t s, in the a dministrative c os t o f stamps , c ommodities o r fr ee l unches a n d bre akfasts, and nutrition education. c)

Private r e s o urces, in addition, sho uld be sought and used

where needed.

�- 12 4.

Environmental hazards and disease-producing agents must

b e eliminated.

This requires that large scale air pollution and

waste disposal problems must be more vigorously attacked by public agencies.

This attack should include the establishment of more

r igorous nationwide legislative standards and aiding and requiring p rivate business to eliminate their pollution of the atmosphere. Much of the clean up, rat control, garbage disposal and elimination of pests and nuisances that make the surroundings of life in poverty unpleasant and prone to added illness, can be dealt with t hrough added specialized manpower:

housing aides for inspection,

s anitation aides for education and clean-up. 5.

Expand the essential supply of health manpower through

i nteraction with local educational institutions and health service b odies.

A great deal of the community work that needs to be done

i n taking care of the non-professional aspects of personal health c are, such as home health aides, interpreters, new kinds of techn i cians, the elimination of environmental hazards and the casef i nding aspects of nutrition and handicapping conditions, the educa t ional aspects of health, and nutrition can be carried on by s p ecially trained local people.

In addition, through community con-

f eren c es with medical school leaders and sch ools of public health , t h e oppo r tunities can be developed for increasing the supply of phy si c ian s , nurses and public health wo rk e r s.

This should apply pa r ti -

c u l a r l y to the possibility of r ecru i t ing l o cal poo r a n d d isadva ntag e d i nto the se health care e rs .

�- 13 -

6. Modification of Federal policies for health facility construction and modernization.

In order to provide the health

facility base from which the improved and expanded health services are to be delivered, the present Federal health facility policy as exemplified in Hill-Burton legislation must be modified. Facilities grants must be less retrictive, more applicable to the needs of the inner cities, offering a larger Federal share and directed toward compre h e nsive service s, particularly ambulatory care components.

Loans and loan guarantees will not benefit public

hospitals sufficiently because of the problem of tax e xempt bond issues.

Loan and intere st repayment inf late per d i em costs.

large city hospitals serving the poor, grants of up to 100% be needed.

For will

Grants will have to be avai l able directly to cities,

or priorities in the Fede ral l e gislation or administration changed to favor big city hospital moderni z ation and ambulatory care service construction . 7.

Ex pansion of Fe d e ral h ea lth programs is e ssential to

me eti ng t h e h ealth needs of u r b a n dwelle r s.

There is spe c ial need

for : a)

Increas e d insuran c e a nd Fed eral f unds through Ti tle s

XVIII and XIX a n d o ther programs for the money req u ire d to pay for added needed s ervices to t he poor; b)

Impro ving t he o rgani z atio n o f h e alth services f o r all ,

but e spe ci a lly the poor th r ough ·n e ighborhood health c e nters , a nd

�- 14 continuity of care especially in the stimulation of group practice, particularly with prepayment. c)

The modification of medical education to hasten the in-

crease in enrollment of waiting applicants to medicine. d)

Improving the wage and employment conditions of health

workers so as to attract more young people and particularly the disadvantaged, into health careers. e)

Correspondingly improving the junior college and college

opportunities for training in the health careers. f)

Expanding food programs that are geared to established

scientific standards and not arbitrary means tests. g)

Eliminating air and water pollution.

h)

Improving the total environment.

In brie f, the Coalition will strive to: --Ai d local communi t ies to ma k e the b e st possible us e o f existing resources; --Bring about expansion of h e alth services f or mothers and c h ild re n; - -Intensify Federal efforts to assist local communities in i mproving the i r health facilities and s e rvices ; --Ohtai n add i t ional app ropriation t o f ina nce me d ical care f or the residents o f the inner cities; --Elimi n a te barrie r s t o ac ces s t o a d equate supplie s o f food; --Strengthen Federal programs designed to add heal th manpower to the pool

available for service to residents in the inner cities;

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--Press for greater citizen participation in community health service decision making and operation. Short-term, immediate objectives should include all local efforts to improve clinic services keeping in view the long-term objective of comprehensive group practice, prepaid, possibly '

through neighborhood health centers; developing realistically defined entry level job opportunities coupled with health career development opportunities; improved food distribution programs combined with emphasis on long-term objectives of pay or public assistance programs of whatever kind that provide enough money to buy enough of the right kind of food. To achieve these goals, the Urban Coalition is developing and will shortly publish, a "Rx for Action", offering local coalitions a wide range of choices in various areas of action to improve health services; technical assistance through publications that will aid in accomplishing the ends prescribed in the manual; and consultant services to stimulate and support local coalition health activities.

1

�THE UlfBAN COALITION ACTION COUNCIL 1819 H Street, N .W . • Washington , 0 . C. 20006 (202) 293-1530

JOHN W . GARDNER Chairm an AN DREW H EISK ELL A. PHILIP RANDOLPH Co -chairm en LOWELL R. BECK Executive Director

April 25, 1969

Mr. Dan Swe:et Office of the Mayor of Atlanta City Hall Atlanta, Georgia 30303 Dear Mr. Swert: Mr. John Gardner and Mr. J. Irwin Miller testified yesterday before the Senate Subcommittee on Employment , Manpower and Poverty. At the request of the subcommittee chairman, they were the lead-off witnesses. They stressed the importance of significantly expanding antipoverty efforts in both urban and rural communities. We believe you will be interested in their prepared statements. Sincerely,

/4L-ULI!. ~~ Lowell R . Beck

�Statement by JOHN W. GARD NER, Chairman The Urban Coalition Action Council before the Subcommitte e on Employment, Manp ower and Poverty Committee on Labo r and Public Wel f are United States Se nate

April 23, 1969

Mr. Chai rman, we are pleas e d to b e h ere on behalf of the Urba n Coa lition Ac t ion Council.

The Ac t ion Council brings to g ether

v a rious l e ad e rs f r o m s e gments t hat do no t n orma lly coll a bo r ate for the purpose o f r eaching a gree me n t or s ol ut i ons t o ou r n ation ' s dome stic pro b l e ms.

We a r e h ere tod a y t o disc u s s poverty i n the

Un i t ed S t ate s . By cu rr e nt Soci a l Secur ity Administration c r i t eria th ere

are 2 2 milli o n poor p e op l e i n the Un ite d St at e s . ha s d e c l ine d from 3 9 millio n in 1 959 .

The numb e r

To l ift 17 mi llion p e o ple

out o f pover t y i n 1 0 y e ars is a cons i der a b l e ach i eveme nt, worth b earing in mind i n th ese d ay s of d i scou rageme nt.

It s houl d g ive

u s cou rag e and co n f i d e nc e t o tac k l e the rema i ni n g t a s k. To le t the a c hi e vem e n t l e ad t o a s l a cke n ing o f effo r t would b e t h e worst ki nd o f fo lly .

Twe n ty- t wo millio n p o or peop l e

repr ese nt a t reme ndous amount o f human misery a nd depriv ati o n.

�i

-2In his excellent paper entitled "Who are the Urban Poor?" Anthony Downs offers some highly relevant data.

Of the urban p oor,

the majority are white almost half are in households that cannot be expected to be self-supporting:

the aged, the disabled, the

mother with infant children forty-one per cent are children under 18 nearly one-third a re in househ olds h e aded by employed men whos e earni ngs are below the poverty leve l. It is worth r eminding ourselves that the poverty remaining after dec ade s of unp recede nted a fflu ence is riot like the poverty th a t wa s once widespread in thi s count ry . that rema ins.

It is the h ard-core

It is not the g e ntee l, thre a dbare but benign

poverty of the 19th Century clergyman or t each er.

It is poverty

at its mo s t stub bor n, pov erty rooted in th e s oci a l d i sintegration of urban a nd rura l s lums , poverty linked to s evere cultu ra l deprivation, poverty complicated by illite racy , phy ~ica l handicap, advanc e d age , or me nta l r e t a r dation.

In s uch p overty , hung er a nd

ma lnutri t i on warp t h e no r ma l course of c hi ld develo pme nt; p hysica l ai l me nt s go untreat ed and turn into li fe long h a ndic ap s; child re n are n ever exposed t o the s timu l a tion t hat would e n s u re t heir in te ll ec t ual deve l opme nt; the enviro nment breed s h opelessness a n d l aw l essness.

It is a wor l d of v i c tims and it breeds v i c t ims.

An individual born into s u c h an environment does not--cannot-enjoy th e opportunity we regard as t h e birthr i ght of every American child.

I f o u r commitment to the values we so proudly

�-3~ profess doesn't move us to right that wrong, our self-interest should.

Out of all proportion to their numbe r s in the population,

the children of poverty become, in later life, economic burdens on the rest of the community.

If we are unwilling to spend the

money to cure the problem at its source, we spend the money later anyway--in the social cost of crime, narcotics addiction, social unrest, mental illness, lifelong phy sical handicap and so on. The attack on poverty must be far broader and more varied than is generally recognized. We have to begin with management of the e conomy and with attention to economic growth and full emplo yme nt.

Back of

every thing we seek to accomp l ish is the economic strength of the n a tion.

That strength mak es our social programs p ossible .

It provides the jobs and pay ch ecks that enable most Americans to e a t well, keep their childr en healthy and funct i on as ind ependent citizens living thei r lives as they please. We often fa ll into the h abit of t alking about ou r economy as one thing and our socia l p r ograms as a completely d i fferent subj e ct.

They are th e same subject.

main social program.

Economic growth is our

The freest and best money a ma n receives

is the mone y in his pay envelope.

The bes t program for creating

i ndependent and confident citi ze ns is a vital, full-employment economy. Therefo r~ we must expec t the Administration and the Congr ess to use the tools of monetary and fisca l policy to avoid inflation or recession, to facilitate capital growth

�-4where possibl e , to e xp and job o pportunities and job t r ai n ing, to seek wag e -price stability , to encour a ge the development o f new products and s~rvices and the adv ancement of science and technolog y , to foster increased prod ucti vi t y , and to protect natural resources.

,.

The a ttack o n pov erty also calls for adequate progr a ms of income mainte n a nce - -unemp loyme nt insur a n ce, social secu r i ty , public assistance, and probabl y new forms t o come.

These prog r ams

hav e no t be e n surrounde d with t h e glamou r that has touched some othe r aspects of t he attac k o n p over t y ; ind e e d t h e publ i c assis t ance pr o gram s h av e be e n the su b j e ct of widespr e ad ho st i lity. But it is a p l ai n fa ct th a t mos t o f t he p oo r a re too ol d or t o o young or t oo si c k o r disab l ed t o enter t h e j ob marke t .

No ma t ter

how bri l liant l y we pursue reme di a l prog rams , t h ere wil l a l way s remain a large numb er wh o can only be aid ed by providing c ash i ncome. A comprehen s ive attack on poverty a lso requir e s that we rehabili ta te the victims of poverty and e liminate the urban and rural slums where poverty is bred.

To h e l p t he indi v i dua l we

mus t h ave adequate l y funded programs of educat ion, job training, he al t h care and social services.

To ch ange the environment

involves massive urban efforts f suc h as the programs called for in the Housing Act of 1 968 ; as well as region a l and rural development activities such as the Appalachian Program. In short, the total effort to deal with poverty reaches into every domestic department of government.

As you know, the

Office of Economic Opportunity has controlled something less than

�I

.

-58% of all federal antipoverty funds expended during its life. Agencies with far more resources at their disposal are concerned with. housing, manpower, health and other needs of the poor.

If

we do not adequately fund those broader programs, the attack on poverty will be crippled. 1 would place particular emphasis on modernization of the e x isting welfare prog r am, including Fed e ral support of national welfare standard s , and hopefull y , early consideration of a more thoroug hgoing revision of the national income maintenance s y stem a stepp e d -up training p r o g ram with built-in incentives, bett e r t ai lor ed to the n eeds of the s e ver a l c a t ego rie s of poo r , e.g ., t he we l fare mothe rs, the uns ki l led t eenager, t he employed l ow earning family he ad Jo b creat i on--an exp a nded JOBS program t o i n c re a se p r i vate emp lo yme nt, a nd a publ ic serv i ce emp loyment p rog ram educa tion , h e alth a nd nutritio na l progr am s to c ounter the e f fec ts of pov e r ty on th e con s i dera bl e number o f ch i ldr e n g r o wi ng u p in poo r f amili e s. We mu s t beg in to t h ink i n terms of mu ch hi ghe r l e v e l s o f fu nding in are as affec t ing t he poor .

Actua l appro priat io ns

ge ne ra l ly are significant l y be l ow a u t ho rized appropriat i ons, We o ften h ea r t ha t pover t y programs are failures; t hat t h ey d o not work.

And yet, they se l dom are given the necessar y funds or

�-6the long-range commitment to insure their success. Some examples wi ll show the glaring disparities between authorizations and appropriations.

The Model Cities program--

intended as a coordinated attack on blight and treating social as well as physical problems--was given $625 million last year although more than $1 billion was authorized.

This year only

$675 million has b ee n requested, with an authorized amount of $1.3 billion. The home o wne r ship and rental assistance provisions of the Housing and Urb a n Development Act called f or $150 million the first year , and onl y $50 mi llion was appropriated.

These

funds have been fully committ e d f o r several months, and many are beginning to quest io n serious l y t he gove r nment I s c o1mn i tme nt under the Ho u s in g Act .

The Nix on Adm in istratio n is re questin g

full fu nding for th e se prog ram s a nd Congress must act o n this reque st i f the Ho u s ing Act i s to meet i ts p r omise. Th e Off i c e of Economic Oppo rt u ni t y has consistently failed t o sec ur e full appr o pr i at io ns.

And in educ a tion and

he a l th, the re h as bee n a no t ice a ble f a ilure to spend the amoun t s n e c e s sary to have a n imp act o n pove rty.

Title I of the

Element ary and Se c onda r y Educ a tion Act, which pro v ides fede r a l funds to s chool d i stri ct s tha t have sp eci a l pro j ec t s f o r disadv an t age d ch i ld ren, r e c e i ved a n author i za tion of $2. 7 2 6 bi lli o n yet

i t was a llowed o nly $1.1 2 3 b illion i n a p propr i ated f unds . And so the story goes .

It i s u nreal i stic to believe we c an

s ol ve ou r nation ' s problems i f we do not prov i de even the auth orized funds after long and studied debate over proposed solutions.

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And now let me tu r n specifically to e x tension of the Economic Opp o r tun ity Act a nd the Offi ce o f Economic Opportunity. Mr. Chairman, in preparation for this testimony , I revi ewed the history of the Office of Economic Opp or tunity since 196 4 , a nd I must s a y that I am impre ss e d with the role that t h is Committe e ha s pl a y e d. and in s i g ht.

The Committee has shown concern

It h a s worked h a rd to educa te itsel f a nd to se rv~

as a n advo cate f or t h e poor. It is e a s y to critici ze the hectic e a rly years of the OEO. But wh en the smo ke cl ears away; I b el i eve th a t history wil l r eco r d si gnif i cant achievement s .

The OEO ' s vigor o us efforts stirr ed a

concern for the victims of poverty tha t made p o ssible a mobilizat i on of resources r eaching far beyond t he agen c y its e lf. Programs in beha l f o f the poor in every othe r dome s tic d e p artme nt be n ef itte d by the g enera tive f o rce of t his new e ff ort.

Beyond

that, the OEO has inj ec ted a n ele ment o f innovation into a numbe r of programs addressed t o the problems o f th e poor; it has ide nti fied and f o stered community l eadership a mong the poor and among minorities; a nd it h as enabled m~ny of us to ga in valuable insight s into the imp a ct o f insti tutional inade quacies on the li ves o f the poor. Looki ng to the f uture , I want to speak very briefly of thr ee themes which were p romine nt in the ear l y concepti on o f OEO' s function:

innova tion, community parti cipation and

coordination. The i nnov at ive approach must continue to characterize the OEO.

The infusion of " research and development" t e chniques

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into social program areas should be firmly supported and expanded. The innovative approach is well illustrated in the delive r y of services to the poor .

Breaking out of the mold of

traditional agency patterns, the b es t poverty programs h ave shown that legal and heal th services, pre-school education, multi- service progr am integration in n e ighborhood centers and other te chni ques could in fa ct reach p ers ons long con s i dered unre achab le. It is not gene rally reco gn i zed th a t t he innova ti ve activi ties o f OEO had a far- r each i ng imp a ct on the old- l ine departme nts.

The latter would b e loath to admi t

it , but many

p r ograms undertake n by the old -l ine departme nts betwee n 1 965 and 1 96 8 we r e inf l uenced by t he philosophy of the OEO. At th e h eart of th e controversy surrounding the OEO has b een th e ques tio n of public power for the poor.

The "War o n

Poverty " provi ded t h e first ma jor t ools wi th which the poor could seri ously affec t some po lic ies and programs at both the national and th e local l evels.

It is t r u e that in a typic a lly

Ame ric a n burst o f e nthusiasm, the OEO wen t at this task with a maximum of energy and a minimum o f reflect i on.

But perhaps

su c h things c an only be a ccomplished in a burst of enthusiasm. I a m thoroughly fami li ar with the problems, inconsistencies, ten s ions and mi stakes that h a ve arisen fro m appl icati on of the requirement for "max imum feasible participation."

But we

are more skillful in handling thos e prcblems today than we were two y ears ago, and we are still learning. ,,

It was wise to seek

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to give a voice to the poor, particularly wi se in the case of minority groups

(because of their systematic prior exclusion).

I believe that we will move towa rd incr easing l y sound and effective f o rms of citizen pa rt icipation . Eve n today, as my own staff mo~es about the country helping to organize local urb a n co a litions and se e king the cooperat ion of le aders from the bla ck community, we find that many of th e ablest local lead e r s we can r e cruit for our purposes ar e me n and wome n who had t hei r first tast e of leadership in th e Community Action Programs . I h ave emphas i z e d th at the attack on poverty , broad l y con ceived, r eaches into every dome s tic d e partme nt.

Such

multif a rious a cti v ity cr i e s out for coord inat ion, and of cour s e the OEO was p l a ced in th e Ex ecut ive Offic e of the Preside nt to ac c ompl i sh jus t t h at.

As we all know, it n eve r

di d , p a rtl y b e c a u s e it s energ i e s went in to op er a ting new prog r a ms, and p art l y b ecaus e coord in at ing Ca bine t me mb e rs is a difficult t ask a t b es t . OEO' s achievemen t s in coord i na t i o n hav e not b ee n alto ge th er neg l ig i b l e.

I t h as wo r k ed out che c kpo i nt pro ced ur e s

th r ou g h which federal agencies , grantees, st ate agenc i es and lo ca l c ommunities engage in mutua l consu l tati o n before grants are made.

And i t has developed joi n t projects such a s th ose

i nvolv i ng displaced farm workers i n th e Mississipp i De l ta, I ndians, and migrant workers. But much, much more is needed.

I believe that my views

on the coordination of domestic programs are fairly well known.

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I do not accept the widely sh a r e d notion that Cabinet membe rs cannot be coordinated.

The y can b e .

The first requireme nt

is unflinching de termination on the part of the Preside nt to bring abo ut that r es ult.

The second is a suitable instrume ntality

(and I may say p are ntheti ca ll y th a t the Economic Opportunity Council, properly u sed , wou ld h ave bee n quite a dequat e to the · purpo se ).

The t hird requir eme nt is that th e instrumen tali ty

must b e h eaded by a ma n o f stature, implicitly t~ust ed by the Pres ident . There i s a serious quest i on as to wheth er OEO can ever fill t his coordi nat ing function so long as i t

is an o p er a t ing

ag ency -- and th eref ore, in a se ns e, a compe titor o f th e departme nts it hopes to coo rdinate.

So we may h ave to look to

Preside nt Nixon ' s n ew Urba n Affairs Council to accomplish the d e sired result.

It will do so onl y if the President hims e l f

takes an active inter es t

in it , and o n l y i f a s trong and

subst ant i al professional staff is prov ided to pl a n, ev a luate, sift p r i or iti e s , develop a lterna tive cour ses of action and make recommenda t i ons to the President. Whil e we 're on t his s u b j ec t

I wan t to say a word abo ut

rural poverty, because it involves the question of coordination. We wi ll not solve our most pressing urban prob l ems as long as widespread rural poverty exists .

The h eavy migration from rural

America to the blighted areas of our major cities clearly shows how b ad economic and social conditions are in rura l areas; de spite the privations felt by the urban poor, dehuman izing urban conditions continue to represent a substantial improvement

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over life for the poor in rural communities. With improving agricultur a l technology, ever more per~ons will have to find employ ment outside agricultur e .

Already the

great majorit y of the rural poor are not in any way involved in farming.

Industri a l de v elopme nt in rural ar e as should be

vastly e xpande d wh e r eve r suffici e nt potential e x ists . State s a r e unique l y situated to combat rural poverty . Programs of eco n omic a nd co~munity d e vel opme nt in rural ar ea s frequently require multi - coun ty planning a nd coordination. Federal funds, includin g CAP fun d s, shoul d encour a g e the deve lopme nt of s ta te -coo r d ina t ed d e mon st r ati ons in rur a l ar eas -- p e r haps s evera l in each s t at e -- with s pe cial emp hasi s on economi c deve l opment and o n tr a i n ing o f admi ni s t rat i ve and pro gram personne l for a ll ph a s e s o f community d evelopment , fro m pub l ic admini s tr a tion t o staff for socia l we l fare agencies. Such d emonstrations should extend to educ a tion, h ealth, i ndustrial d eve lopment, tra n sportation and al l o th er re l evant fie l ds . Obviousl y , programs o f th a t scope are not t h e a ppr opr i a t e primar y function of the De p ar tment of Agri cultur e a lo ne ; rath er , th ere shoul d be a coordinated attack b y the Dep artmen t s o f Agricult ure, Labor, Hous i ng and Urban Development, Transportation, Health, Education a nd We lfare, and the Economi c Development Administratio n.

The OEO mig h t conceivably be t he in strumen t for

accomplishin g such coordination a lthough -- as indica ted earlier -- its capacity to oper ate and coordinate at the same time remains in doubt.

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In the fin a l analys i s , subst a ntial economic d evelopment is the key to e nding rur a l poverty .

There is at p res e nt no

fed e ral policy g uiding the app licati o n o f the nation's con s ide r a ble potenti a l in this are a .

Re sources of the

Ec onom{c Deve lopme nt Admi nistr a tion c an be broug ht to b ear only where the most s e v e r e cond iti ons alre ady e x ist, a nd even then there is virtually n o coord i nat i on be t wee n the Ec onomic Deve l opment Ad mi nis t r a t i o n and ma jor fede r a l age ncy p r ocur e me n t a n d cont racting f u nct i ons . There h a s been much d i scu ss i o n o f wh e ther t he v ariou s OEO p r ograms s hou ld be move d to the regular departme nts .

I be lieve

that some definitely shoul d be t ransferred under c arefully d rawn cond iti ons.

I con fess t ha t I am equal l y i mpat i ent with

thos e who are tot a lly ho s til e to the OEO and tho se who want to preserve it u nder g l ass, utterly uncha nged . I need not remind th i s Committee that about 40 % of the funds appropriated u nder th e Economi c Oppor tunity Act have a l ways gone i nto programs delegated among variou s federa l age n cies.

The great bulk of these funds h as gone into a series

of wo rk and training programs, a n d th ey have been the basis for much innovation wi th in the receiving agencies . I am keenly conscious of the problems involved in transfer. Fo r example , federal departments presently function heavily through state agencies; they do not, in the main, have stron g relationships to local l eadersh ip and organization.

If the

departme nts receive programs from OEO they must continue to foster the new constituencies developed around the programs

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at the local level, and Congress must encourage them to do so. Similarly, they must protect th e innovative values of the transferred programs. If these programs cannot survive in the regular agencies as the latter are presently org anized, then th ere is something gravely wrong with the regular agencies, something that should be corrected forthwith. To insure an appropriate outcome, it seems advisable that, at least initi al l y , delegation should be favored over outright transfer.

Transf er should occur only as the regular agencies

prove their capacity to nurtur e the delegated programs.

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I have been asked my v i ews on how ma ny years the present legislation should be extended.

I do not have fixed views on

that sub j e ct, provided th at two princi ples are ob se rved .

The

first i s that eve ry program should be open to pe r iodic r evision as experience is ga ine d .

The s e cond is that the nation s hould

exhi bit an unwaveri ng commitment to fight the poverty battle continuously , thi s yea r a n d nex t and the year after , never relenting until t h e j ob is d one .

It is not an of f- aga in - on -

again kind of prob l e m and it do e sn 't me rit tha t kind of answer. In c losing , gen tl emen , let me reve r t again to the tota li ty of the gover nme nt's effort in combatting p overty.

I

am firmly convinced t h at mo re billions mu st b e p o ure d i mmed i ate ly into th e broad s pectrum of hou s in g , edu ca tion , h ea lth, ma n p owe r d eve l opment , a nd othe r federa l pro grams which make up the broader anti-poverty package.

Millions are st il l hu ngry, or

live in i nadequate ho us i ng ; the ma j ority of p oo r head s o f households work ful l time ; hea l t h services are still i naccessib l e to millions ; school systems and entire ci t ies across the country are facing bankruptcy whi l e provi ding minima l services to needy citizens.

We can and must dea l with those p roblems at once.

�Statement by J. Irwin Mi ll er , President, Cummins Engine Company and Membe r, Policy Council, Urban Coalition Action Council before the Subcomi71itte e on Employme nt , Manpower and Poverty CoITLrnittee on Labor and Publ ic Welfare U.S. Se nate April 23, 1969 Mr. Chai rman:

I appreciate the o pport unity to ap p ear wi th Mr. Gardner on behalf of th e Urban Coali tion Ac t ion Council in support of extension and adequate funding of t he Economic Opportu nity Act.

I endorse Mr. Gardner's statement, particularly his

conclusions and proposed Congress i ona l action. There are two points ma d e by Mr. Gardner to wh ich I wish to call s pe cial at t e ntion.

The first conce rns the fact th a t

we -- business, l a bor , mayors, religion, minority and ci v ic groups - - r e presen t a broad -b as e d n at ion a l coa l i tion of norma ll y diverg en t i n t e rest s .

The Urban Co a l i tion Action

Council was fo rmed b e c a us e of our conce rn with the futur e of t his incre a s ingl y ur baniz ed so ci ety, and th e l e gislation ne e d e d to me e t t he challe nge s of such a soci e t y .

The Economic

Opportun i ty Ac t i s one of the l e g is la tive too ls mee ting thos e chall e n ge s .

Notw ith stan ding our divers ity o f v i ews on many

issue s we r e co gn i ze t he rol e th e Eco nomic Opp o r t un ity Ac t h a s play e d not only in mater ia l l y imp ro v in g , but in gi v ing sub s tan r ~ to th e lives of ma n y of th e po o r a n d d i s advantage d citi zens in our s o cie t y.

There shoul d b e no tho u gh t g i ve n to

cut t ing ba c k , re t renchi n g o r limiti ng the as si s t ance the Fede r a l governmen t c a n p ro v i de through l eg i s l ati o n s uch a s th is .

In s t ead, t he Fede r a l governmen t . sh o u l d be ge nu inely

concerned t o make cert ain th e f un ding i s e no ugh to d o the j ob within r.easonab l e t i me.

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Th e s eco nd po i nt I wi sh t o make , and a g a in one Mr . Ga rdne r d eve loped i n hi s testimony, concerns the ro l e of com..rnun i ty a c t ion in the overal l ant i poverty effort .

It seems t o me

essen t ial that t he Congress give full support i n t his problem The poor and d i sadvantaged

t o l o cal community i nvo l vement.

are more concerned today than ever before in gaining an effect i ve role in determining their own destiny.

They no

longer see themselves as helpless a n d powerless before the u nyielding and unchanging institutiona l forces of our society. They now h ave a dire ct and significant i mpa ct on these i nstitutions.

Although not all view this impact in the same way ,

I p ersonally beli eve th at greater invo lvemen t by the disadvantaged in social action programs is nec essary, and that resul ts to date have been favorable. concept should be encouraged.

Expansion o f this

There is also no question in

my mind but th at community action programs, fostered and nurtured by community action agencies, wil l turn out to have been th e forerunners of a much wider range of community involvement by the poor.

For this we have the Economic

Opportuni ty Act largely to thank. I j oin Mr. Gardner in urging Congress to continue its support of this legislation by giving it not only the ex~ended life it deserves, but the funds, i n the form of appropriations, it needs to prosper.

�AN ADVERTISING COUNCIL CAMPAIGN IN SUPPORT OF THE URBAN COALITION Summary: The Urban Coalition proposes a national advertising campaign to promote better understanding of ·the problems of the cities and the people who live there, and also to go the next step toward causes and the possible solutions. The campaign would seek to maintain the momentum of the Advertising Council's massive "Crisis In Our Cities" campaign of 1968. (The Advertising Council estimates total space and time donated to this campaign was worth approximately $12,000,000.) Importantly, however, the proposed 1969 campaign would indicate the potential for meaningful action by a concerned and informed citizenry. The campaign-would stress the many resources, federal, state and local, available to a community. However, on the presumption that an effective grass roots attack on local problems is not possible unless the important leadership elements in the community are together, the campaign would cite the potential of an Urban Coalition to help achieve coherent dialogue and to help set goals and priorities. The campaign would be timed to begin in the Summer of 1969 and would run one year. The Advertising Council would donate agency services and media time . space. The Urban Coalition requests $128,000 for production costs and $22,000 for support material.

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AN ADVERTISING CAMPAIGN As the year 1969 opened, discussion of the "urban crisis had reached an almost unprecedented scale. Magazines, newspapers, radio and television devoted columns of editorial space and hours of prime time to the problems of the cities. Now, however, it is the position of the Urban Coalition that the time has come to lead the discussion to a new plateau and to begin the process of education toward a larger citizen involvement, or at least understanding of the solutions of that crisis. A national advertising campaign must be a major part of this educational effort. Progress has been made in some areas. In almost no areas is that progress enough or has it come rast enough to lead any informed. person to believe that the crisis is anything but heightening. The crisis must be met at all levels--federal, state, and local, and it must be met both nationally and locally increasingly by the private sector as well as the public sector. It is the mobilization of the private sector, particularly at the local level, that is the special concern of the Urban Coalition and urban coalitions already established in 42 U.S. cities. The Urban Coalition, at this point in our nation's history, seems to be the single organization or movement dedicated to assisting in the re-establishment of coherent local communities. Today the typical American community is split into a variety of different worlds that are often wholly out of touch with one another. The suburbs are out of touch with the central city. Business, labor, and the universities are three wholly separate worlds. City Hall is usually out of touch with the ghetto and often out of touch with the ablest and most influential people in the city. The most ominous rifts, of course, are the rifts involving various minority communities, most commonly the black community, but in some parts of the country the American Indians or Mexican-American community. Nothing is more clear than that no major city can or will solve its problems without first repairing some of those devastating gaps in communication. Obviously, no single advertising campaign can accomplish this kind of repair. The reconstruction must be fo r ged slowly and carefully by citizens working together to under stand a n d solve the i r problems . But this proposed advertising c amp a i gn , we t h i n k, can increase public unde r standing of a n impor tant r esour ce t o he l p mak e a beginning .

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AN ADVERTISING CAMPAIGN

The Urban Coalition was formed to re-establish communication. But to fulfill its potential, it must be used. And before it will be used, it must be understood. It is important to emphasize the importance of the coalition principle. Some people think of the Coalition as just another organization tackling the rough urban problems of the day. But it is unique. The distinction is that it brings together segments of American life that do not normally collaborate in the solution of public problems. Because of the need for such collaboration at the local level, the national organization has helped to form local coalitions. There are now local coalitions in 42 cities and organizational efforts are underway in approximately . 30 others. As . in the case of the national, each local organization .includes representatives from a variety of leaderwhip segments in the community--the mayor, business, labor, minority groups and religion. The participation of other relevant elements is encouraged--the universities, the schools, the press, the professions. There are many substantive problems of the cities.-"'."'"fiscal and grivernmental pro~lems, housing, jobs, education, health services, economic development and . so on. The Urban Coalition is interested in all those problems, but it is not free to choose the particular problems to which it . must give its attention. There are priorities which . are thrust upon us all. There are issues so e xplosive that if they are ignored, we shall be overtaken .by events--and then every problem on the list will be infinitely harder to solve. The goal that takes precedence over all others is to begin to heal those rifts that are now making many American cities quite incapable of any kind of healthy problem solving. Those rifts can be healed. We can heal them through the process of coalition, if the most influe-ntial citi z ens in the community will _lend their . strength and their presence, if all significant elements in the community a re fairly represented and if all concerned are unsparingly honest i n facing the toughest issues . In a number of American cities today those condi tions are be i ng met in local urban coalitions -- the most influen tial cj, t.i zens have. ste p ped fo rwa r d , al l s ignif i cant elements in t h e .community a r e r e pre s e nt ed a nd t he toughest issues a r e be i ng f aced .

The Propos e d 196 9-7 0 Urba n Coali t i o n Adve rti s ing Camp a ign The foregoing has b e en a n a tte mpt t o d emons t rate the n e ed a nd the potential of the Urb a n Coa liti o n. What follows is a d e scription of a specific multi-medi a a dver~i s ing cam~ai~n.designe d to make the Coalition known and understoo d by a significant segment of ' ~he .American public so that it will be used. ,.

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AN ADVERTISING CAMPAIGN OBJECTIVES The first and foremost objective of the 1969-70 campaign is to establish the Urban Coalition as the focal point of effort by local business and community groups in solving the crisis in the cities. The main thrust of the campaign will be to tell in detail the Urban Coalition story: the coalition principle of collaboration of all concerned groups in tackling specific problems; its stress on local initiative and effort; its record of success. A second, and equally important, objective is to convince both business and community leaders--as well as the general public-that the problems don't stop just because the riots are dispersed or contained; that is, we must counter any idea that the crisis has passed, or any let-City-Hall-do-it attitude. The third objective is to create the advertising materials in such a way that, in addition to their use by the Advertising Council in national media; they can also be used by Urban Coalition groups in local media to assist with the national campaign, for organization and support of new or existing Urban Coalitions. AUDIENCE

The primary target audience includes the broad spectrum of opinion leaders--from corporation presidents to black student militants to garden club members--from whose ranks the Urban Coalition draws active participants.

The second audience includes those among the general public whose understanding and support can assist the efforts of the Urban Coalition groups. MEDIA

Major mass audience magazines Major market newspapers Pacesetter publications (i.e., HARPERS, THE ATLANTIC, SATURDAY REVIEW, etc . ) Business press Network TV and radio

.

,,

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AN ADVERTISING CAMPAIGN CAMPAIGN 3-b/w ads suitable for newspaper and magazines 3-adaptations for use by local Urban Coalitions 3-b/w ads special for Business Press campaign 1-"car card" for transit adve rtising 1-24 sheet billboard ad 2-:60 TV commercials, with :30, :20, and :10 adaptations 2-radio cornmerc ials COSTS* Magazines and newspape rs Company publications Business Press 24 sheet billboard ads

$18,000 2,000 13,000 9,000

car card transit ad

1 1 ,000

Tele vision spot s

70,000

Radio spots

5,000

All purpose support k it fo r use by local o r g anizations a nd coal itions to s t i mulat e placement

12,000

Response booklet "What Can I Do?"

10,000

  • Estimated b y s t aff of the Advertis ing Coun ci l

Those o f us invo lved in the f o r ma t ion and o peration o f the Urban Coalitio n b e lieve it rep resents a grea t re source f o r the American cit y. We believe i t is a r esour ce which s h ould be u nd ers t ood b y as many c o ncerned cit izens i n as many American communi t ies a s ~ossible. It is for this reaso n that we propo se this advertising campaign and ask you r suppo rt in prov iding funds for o perating and support costs. The Advertising Council estimates that these costs will amount to $150, 000 . The Council estimates that this investment will result in the dona t ion of $2 0 , 000 ,00 0 worth of time and space by the media. Attachments:

Advertising Council reprint on Crisis in Cities List of local ~oalitions and officers Annual Report of the Urban Coalition

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CHAI RMAI\I : Johr;i W. Gardner CO-CHAI RMEN: Andrew Heiskell/ A. Philip Handolph I

April 9, 1969

The Honorable Iva n Alle n, Jr. Mayor o f th e City o f Atl a nta City Ha ll Atla nta , Georg i a 30303 · Dear Ivan: I am e nc losing f o r your i nf o rmat i o n th e F ir s t Annua l Repo r t of t h e Urban Coa l i t ion. I f y ou wou l d like additi o na l c opies please do no t h es i tate to ask. I also am enc los ing th e proposed d es i gn o f a ma j o r adver tising c ampa i gn whi ch we are n ow dis cussing wi th th e Adverti sing Counc il . The c ampai gn ' s p u rpose is t o s u stai n t he momentum o f l ast year ' s c a mp a ign on " Crisis in o ur Cities" and wou l d res ul t i n over $20 mi l lion o f contr ibuted advert i sing space . Before proceeding f u rth er with d e t a ile d di scussions , we wi sh to a l ert y o u to our i ntentions. We wou l d appreciate receiving any comments and sugges t ions you may h ave o n t h e matter. Sincere ly,

Peter Libassi Executive Vice Preside nt cc:

Mr. Da n Swe a t

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�House Will Act Soon on Bill Continuing Urban School Aid A bill extending for five years the most important federal program for urban schools -- the Elementary and Secondary Education Act -- is ready for debate in the House. ·The Education and Labor Committee of the House approved the bill (HR 514) March 18. The cities look to Title I of the Act for money to support compensatory programs for their disadvantaged children. Title I distributes federal appropriations directly to school districts that have large numbers of children from low-income families, urban and rural. In reporting the bill to the House the Education Committee over rode the request of HEW Secretary Robert H. Finch for only a twoyear extension of the Act. He said the Nixon Administration needed time to study proposed changes in the Act and in the meantime, a two-year extension through June 1972 would provide adequate continuity for present programs. Most committee Republicans supported Finch's request and promised to fight the fiveyear extension when the bill is debated in the House. Two changes affecting urban schools were recommended by the committee. One would make about $ 300 million more a yea r available to school districts in which there is considerable public housing. The other amendment calls for participation by pa r ents and communi ty groups in the planning of Title I school projects. I nad equate Fund ing Throu ghout the commit tee hearings on HR 514, the bi ll ' s spons o r, Commi t t e e Cha irman Car l D. Perkins (D Ky.), pointed out the n eed f o r l arge r a p p r o pri a t ions for Title I of the Act . Hi s c omContinue d on Pa g e 2

ACTION COUNCIL

LETTER LEGISLATIVE BULLETIN OF THE URBAN COALITION ACTION COUNCIL

March 25, 1969 -- Vol. I, No. 3

States Hold Back Anti-Crime Funds from Cities, Report Says Where are crime problems the most serious? Under the Omnibus Crime Control Act of 1968, American Samoa gets $3.54 per capita and Vermont 31¢ per capita, while New York and California receive 7¢ per citizen. Similarly, a rural Georgia county gets 14¢ per capita while the metropolitan Atlanta region receives less than 3¢. These are figures produced in a study of the Crime Control Act in operation, released by the National League of Cities March 18. When Cong r e ss pass e d the Ac t last year, it directed that most of the funds go to the states in block grants, to be distributed according to plans drawn up by a state agency. Urban groups urged in vain that most of the money go directl y to the 370 cities with population ove r 50 , 000 , where c r ime is t he most prev ale n t . The League of Cities r epo rt say s that i n s t ead of focu s ing dollars on t h e prob l e ms o f crime i n the s t reets , pla nn i ng f u nd s a r e thi n l y spread a mo n g r ural a nd urb a n a r eas and "di ss ipated" among t hre e levels o f b u r e aucr a cy.

The Action Council Letter reports legislative developments 1n the urban field . It is published by the Urban Coa lition Action Council, which seeks needed urban legislation .

�Continued from Page 1 mittee is responsible for authorizing the education programs, but the amount of money that actually goes out to the schools is determined primarily by the separate Appropriations Committees of the House and Senate. Under the present law about $2.5 billion a year is authorized for Title I grants but Congress has appropriated only $1.1 billion. In fact, last year's appropriation was $68 million less than the previous year's, while the number of children eligible for the programs was increasing, and so were education costs. Rep. Perkins has pointe d out that in the f irst three years of Title I, the appropriations per child have decreased from $210 to $170. Some school superintendents told the House committee that an effective, comprehensive program for disadvantaged children would need $600 per child. A new federal program to help local school districts prevent teenagers from dropping out of school has proved popular. In fact, 356 proposals h ave been submitted t o the Off ice o f Education, of which only 5 can be funded. There is $30 million authorized for drop-out prevention programs, but Congress has appropriated only $5 million. The f unds will be granted for innovative plans that show unusual promise of success in pre venting drop-outs. The budget submitted by Pres ident Johnson before leaving office proposes $24 million for the program in the nex t fiscal year. The 356 proposals submitted to the Office of Education would cost $68 million. HEW estimates that of children who entered 9th grade in 1967, 23%, or 900,000, will drop out before graduating from high school.

Rep. Ca rl D. Perkins (D Ky.) and his Education and La_bor Comm ittee are moving ahead with elementary educat ion, school lunch and poverty leg islation.

Bill to Improve School Lunch Program Is Passed

by

House

For the second year in a row, the House is trying to increase the number of needy children who get free or reduced-price lunches through the school lunch program . As it did last year, the House passed without opposition March 20 a bill (HR 515) to require all states to put some of their tax money into school lunches . Presently, some states contribute nothing to the program, requiring the children and local schools to put up all of the money needed to match federal funds on a 3 to 1 basis. Last year, spurred by publication of a report by the private Committee on School Lunch Participation showing that less than 2 million of some 6 million needy school children got reduced - price lunches (see chart), the House

�Free School Lunches Free lunches I ( doily a ve rage)

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Ka nsas Kentuck.y Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana 3 Neb raska Neva da New Hampshire Ne w Je rsey New Me xico New York North Caroli na North Dakota Ohio Oklahoma Ore gon Pe nnsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyomi ng Total

77,000 7,000 25,423 70,2 13 0 13,533 4 ,9 14 2, 180 16,759 117,550 107,847 4 ,752 1,880 29,285 15,939 8,656 8,564 80,00 69,260 6 ,480 10 ,294 24 ,911 60,000 10,000 34 ,671 30,000

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Needy childre n 2 not rece iving free lu nch

165,5 22 976 39,348 146,219 0 51 ,833 34, 129 4,368 0 105,249 230,273 9,583 12,764 230,757 134,061 113,650 85,640 __2-_Ql , 9 45 13 1,830 38,520 44,711 52,581 129,900 124 ,111 220 ,232 95,159

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8, 180 1,750 3,245 7,010 32,432 400,000 163,607 3, 185 33,486 25,000 3 ,61 4 8 ,781 3,488 117,38 2 7,200 71 ,100 88,000 14,641 2,600 6 ,787 10 ,000 30,525 11 ,000 752

54,456 4,750 4 ,969 52,835 30,281 200,000 324,068 22,901 9 1,571 72,779 42,714 247,491 16,886 179, 174 25,656 154, 129 3 15,2 16 3 ,559 12,696 182,213 40,000 72,547 11 4,922 5,3 17

1,890,876

4,674,491

I Numb er of free or reduci'd· price lu nches. 2 Need., chddren were those of O#"·" 5 to 17. from hnm e.-. wit h les,fi than °J.000 annual 111com P. .1 No figure" were a vailable from stal e ,o;chool lunc·h authnrit1 e.-.. whn !;upplied information for the surney. Howet:er, a citiuns Committee on School lunch Partici{XJt1011 April 16 r eport Pd that M ontana had J6.9iH ...dwnl-aJ.fP ch ildren from familie.,; earnin,: $2,()(J() a \'ear or r P<·eiuinµ welfare aid. f Jnl ,· 6, /60 reu•if.Jed free or redu<.·ed -pr,ce lunch e.-.

SOURCE : House Education a nd Labor Committee survey (H Rept 1590), June 26 , 1968 .

passed a bill similar to HR 515. More importan tly, the House also passed a bi ll to add $ 1 00 million a year for meals for nee dy ch i ldr en. The Senate p a ssed neit her bill, but it d id agree t o app r o priate an extr a $ 45 million for free lunches. This year, the House Educat i on and Labor Commi ttee, which sen t HR 51 5 to the House floor , a l s o expec ts to approv e a gain the $ 100 mi ll ion free -lunch bill (HR 51 6). Wh a t wi ll b e d o ne by t he Senate Agriculture Committee, which h as jurisdiction over the schoo l lun ch pro gram, remains to be seen.

Congressional Hearings Poverty -- The House Educ atio n and Labor Commi ttee has begun hearings on the Office of Economic Opportunity and its antipoverty programs. Chairman Carl D. Perkins (D Ky. ) has introduced HR 513, to extend the programs f o r five years and authorize $ 2,18 0 , 0 00,000 for the m in the fiscal y ear that begins July 1 . For the c u rre nt y ear Congress a ppropriate d $1 ,9 4 8,000,000. Ho s pitals -- Hearings on the Hill -Burton Act , held by the Publ ic Hea lth Subcommittee of the House I nter state a nd Fo re i gn Commerce Committee, are b egin ning . Two main bills are b e fo re the Sub c ommittee . HR 6797, introduced by Committee Chairman Ha r ley O. Staggers (D W.Va. ) , propo ses ma j or i nc reas e s in fund s f or h ospital con-

�struction and modernization, with priority to be given, in part, to outpatient facilities in low-income metropolitan areas. The other bill, HR 7059, sponsored by high-ranking members of the Health Subcommittee, authorizes less money than Staggers' bill and does not single out urban medical needs. Medicaid, WIN Regulations Chairman Russell B. Long (D La.) of the Senate Finance Committee has said his committee intends to take "a good hard look" at regulations issued in January concerning Medicaid, welfare eligibility, the work incentive program (WIN) and others. Some of these, Long said, "run counter to Congressional intent." No plans for hearings have been announced. The regulations were issued by the Administrator of HEW's Social and Rehabilitation Serv ice, Mary E. Switzer. Long made his statement in introducing a bill to make the ne x t Administrator's appointment subject to confirmation by the Senat e . The Senate passed the bill (S 1022) March 4 and sent it to the House Ways and Means Committee.

Minority Business Enterprise Coordination Is Estab lished

President Nixon signed an e x ecutive order March 5 that established an Office of Minority Business Enterprise in the Department of Commerce. The office is to stimulate business ownership by minority groups and coordinate -- but not take over -- existing government programs. Secretary of Commerce Maurice H. Stans estimated there were 116 programs in 20 government agencies concerned in one way or another with helping minority enterprise. Directors of the new office were named March 13. The director is Thomas F. Roeser, who has been director of public affairs for the Quaker Oats Co. and before that, press secretary for Rep. Albert H. Quie (R Minn.). The deputy director is Abraham S. Venable, a graduate of Howard University and formerly a conciliation specialist in black-white relations for the Community Relations Service, which was a Commerce Department agency until moved to the Justice Department. In announcing the new office, Hearings Available -President Ni xon said: "Black, Congressional hearings on Mex ican-American, Puerto Ricans , t wo subjects of growing importance Indians and others must be increasingly encouraged to ente r the i n the urba n field -- income main~e na~ce ~nd the r ol e of financial field of business , both in the institu tions -:-=--w_ere _held-l at.e- in ---~ re as-whe-re they now l i v e- a nd i.n the last session of Con g r ess . the larger commercial community -Summar ies of these hea r ings , a s and not only as workers but also well as the Action Council ' s pamas managers and owne r s " ph let briefly rev iewing Urban Af · 1 fa i rs Legislation i n the 90th The Urban Coalition Action Counci l Co ngre s s , a r e a v a ilable without charge to anyone who wi shes to 1819 H St., N.W. write f o r t h em t o the Ac t ion Washingto n, D.C. 20006 Counci l . Tel : 202 293-1 530 The s umma r iz e d h e arings are: Chairman : Jahn W. Gardn er Financial Institution s and Co-Cha irmen , An drew Heiskel l A. Phil ip Ra nd olph the Urban Cri s i s . He arin gs by the Exec utive Di re ctor , Lo we ll R. Beck Senate Banking and Curr e ncy ComLegis lative Assoc iates: Joh n P. Lagomarcino Ro nald J . James mittee. Assi stant for Legis lat ive Information , Income Mainte nanc e . He a rings · Georgianna F. Rathbun by the Joint Economic Committee. ~

31

�The Urban Coalition

1815 H Street, N.W. Wash ington , D.C. 20006 Telephone : 347-9630

CHAIRMAN : John W. Gardner CO -CHAIRMEN: Andrew Heiskell/ A . Philip Randolph

March 18 , 1969

The Honor able Ivan Allen , J r . M yor of the City of Atlanta

City Hall Atlanta, Georgia

30303

Dear Ivan: During the last year t he Urban Coalition has grown rapidly in both numbers of staff and the programs and activities we are cur rently carrying out . The time when I could singlehand dly manage both the external and internal affairs of the Coalition has long sine passed. For this reason, I have instituted several internal changes which I believe will significantly improve our capacity to c rry out our responsibiliti s during the forthcoming year. Th se changes include tho following: 1 . I have ppointed Peter Libassi, formerly Vice President for Local Coalitions, to be th Executive Vice Pr sident of the Urban Coalition .

2. I have revised th internal proc du:res by which polici sand progr is were developed by e~tablishing Policy Committee which I will chair. The oth r embers of the Poiicy Coromitt will be C rl Hol n, Vice President for Policy and Progir D v lopment, and Pet r Liba-s si .Sincerely,

John w. Gardner Ch inn n

cc:

Mr. Dan Sweat

�Systetns, Inc. ADMINISTRATI VE OFFIC ES 606 STATE ST. · L AWRENCEVILL E . ILL. 62439 · TEL. 943-3311

Manaqement. Actuarial and Pension Consultants

38 SOUTH DEARBORN

·

March 17, -1969

Honorable Ivan Allen, Jr. Mayor of Atlanta City Hall Atlanta, Georgia Mr. Mayor, I would like to call your personal attention to the seminar described in the enclosed brochure. In view of your involvement with THE URBAN COALITION, I believe you will want to attend or send someone to report to you on the conference. I'm tired of going to conferences on Negroes and youth where all we have is white adult speakers and a couple of name Negroes. I and about Negroes want to hear about youth from youth from Negroes. The rules for this conference were that it had to provide direct interaction between adults and white youth and black youth. It is the youth that make the program good. For the first time, business and educators and students will be in one program o this subject .

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Turmoil on the College Campus -- Seminar

What we are seeing develop on the college campuses is at least as significant to business as the American labor union development. In fact, the development is in many respects similar to the development of American labor unions in the 1920's and 30's. Both have their connnunist rad i cals . Both have been commonly described as an anarchistic conspiracy. In both cases the rest of society initially wanted to b e lieve "only a small minority" was involved.

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Already, a union or caucus of Negro business executives has been formed in New York, the Council of Concerned Black Business Executives. At this conference, one of its organizers will tell us why , and their objectives. Young white moderates -- elected leaders, not self-appointed radicals -will te i l you how they intend to change the business community. These are men that most of us would want to hire.

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As with the l abor union movement, the clergy are playing an important r ol e i n the n ew deve lopment of youth attitude s. On the whole , the c le r gy that are involved with the youth are very much in support of t he new s t ud ent a t t itudes . That's not to say that the clergy always suppo r t a ll of the student tactics. The clergy are included in this semina r because of their specia l role in advising students on the sub ject of "right a nd wrong."

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The obj e ct of the seminar is to examine the turmoil the "easy" way -- ,' 1\,,!~· by l e arn i n g fro m troubl e d educational institutions before we inhe rit · ( i. e . , hire ) t he pr oblems. Bus iness ' has giv en much t hought to the hard core unemployed.

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YOUTH

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BUSINESS

ENROLL NOW TO TAKE PART IN THE SEMINAR

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and its IMPLICATIONS for Business Here is a conference to stimulate a candid discussion between business; college administrators, faculty and students. It will attempt to clarify the issues now confronting university officials -- soon to confront corporate officials -- as a result of changing attitudes . This will not be a seminar of adults meeting to discuss the problems and challenges of youth. Rather, an outstanding and diverse group of speakers representing all points of view, students included, will examine the uprisings now occurring on college campuses throughout the country. Following these discussions, panel is ts including students, college administrators, and corporate executives will discuss the implications for the business community . For business executives this conference will be invaluable in providing:

discussion of how the corporation can attract and retain the top college graduates. communication with students, black and white, moderate and activist, on how and why they are changing the university -- how and why their impact will be felt in the corporation. an understanding of the issues at stake on the university scene, and their implications for business. suggestions as to ways the business community can use i ts organizational abilities and financial strength to effect social changes. "Ethically Sensitive" By the fact of sheer numbers alone, your firm will hire many of the college seniors. Their attitudes on their right to govern society are totally different from the graduates hired only 2 or 3 years ago. In most cases, job interviews will not reveal this, since students frequently guard their remarks in recruiting interviews. The current "ethically sensitive" students demand a right to a part in the management of all institutions in which they participate. Students want a "piece of the action" in college administration; graduates are already demanding a similar participation in corporate affairs.

April 14-16, 1969

Sheraton-Jefferson Hotel, St. Louis, Mo.

�Analysis of Campus Turmoil-·Commentary in Depth There are 22,800 ,000 America ns age s 18-24. An understanding of the campus situa tion is crucial in comprehending the changes which are a lready occurring in business . Monday morning commenta ry will be presented by : -- acknowle dge d a uthoritie s on the subject, includin g college administration and faculty . -- whi te s tu dent lea ders . -- black stude nt le ade rs . -- the Student " New Left. " Monday a ftern oon pa ne li s ts of students, colle ge adminis trators, a nd facult y will lo ok at busi ne ss in li ght of demands made upon the university. Why and ho w will the corporate communit y inherit th e turmoil ? Sep arate wo rkshops will be held with sp e ak ers t o allow closer communication between audie nce a nd p anel.

======== Lun cheon Speakers =======

SEN. CHARLESJ.GOODELL U. S. Senator (New York) recently appoi nted t o Robert Kennedy vaca ncy. 2nd younges t Rep ublic a n in Se na t e .

JULIAN BOND Young Negro leader of Ge orgia Challenge at Democratic Na tional Convention. Georgia Legisla to r

HERE 'S A PARTIAL LIST O F PROMINEN T LEADERS PARTICIPATING IN THE SEMINAR THOMA S A. MARTIN Presiden t

NORMAN NICHOLSON Vic e

Chann ing In vestmen t Mgt. G ro up New York

Ka i ser Indu s tri e s

Oakl and, C a lifo rnia

FREDERIC M. PEIRCE Preside n t Gen e ral American Life Insu rance Comp any, St. Louis, Mo.

Direc tor o f Civic Affairs Se ar s, R oebuck & C o mp a ny

KENNETH M. WA SHINGl ON Forme rly co-ch airman of Black Students Stan fo rd University, Califo rnia now i n business

C. VIRGIL MARTIN

P reside nt Carson, Pirie, Scott & Co. Chicago, Illin ois

PATRICK O' MALLEY

President

Pres ide nt

DONALD A. DEUTSCH GARRY VALK Vice P residen t o f Tim e, In c. and P ubli s h e r of Sport s Illu s trate d New York , N. Y .

GORDON SHERMAN

Pres ide n t

Midas Intern a tion a l Chicago, Illin oi s

Canteen Corporation Chicago, Illinois

EUGENE M. LANG Ch airman Nationa l Bu sinessmen' s Counci l & P r es., R esources & F acili ti es Co rp . (N. Y. )

THOMAS A. BOURELLY

PHILIP TAUBMAN

Chairman Black Caucus of M. B. A. students University of Chicago

SAM BROWN , JR .

National Organizer Students for McCarthy Harvard University, Cambridge, Mass .

FRANK FERNANDEZ

Chairman N. Y . Puerto Rican Student Alliance Brooklyn College, New York

HAROLD WILLE NS President Factory Equipment Supply Corp . Los Angeles, Calif. Formerly National Co-Chainnan Bus. Exec. Move for Vietnam Peace

WEDNESDAY, APRIL 16

TUESDAY, APRIL 15

M O NDAY, APRIL 14

Editor, St ud ent News p ape r Stanford University, California

JOHN B. GAGE All-America n Swimmer, 1963-64 Leader in Ro b t. Ke n nedy campaign , Calif. M. B . A . Student, H arvard Business Schoo l

BERNARD H. GUSTIN M. B . A . Student, University of Chicago

THOMAS J. KLUTZNICK

E xec. Vice-Pres. Urban Investment & Developmen t Co. Chicago. Exec. Com., Anti-Defamation League

"Young coll e ge graduate s a re very much in demand , and they are pressing the ir adva ntage . In response , good corporations are finding ways to accommodate them, rather than re sisting. " FORTUNE magazine

SESSION A, MORNING

(Concurrent with session BJ

Student Role in College /University Government Ne w s tudent fre e dom and student participation in institutional government indicate s th a t corpora tions will face similar challenges . Students hired today will s oon demand a ne w role in corporate polic ymaking. An unde rs ta nding of the ir de mands can be e nhanced by examining present cha nge s bein g ma de in unive rsity go vernment. A. Joint st a teme nt on student rights and freedoms presented by the American Associ a tion of University Professors . B. State ment of the American Civil Liberties Union . C. Stud ent c omments on the adequacy of the two preced ing statements . D. The role students des ire in institutional government.

SESSION B, MORNING

(Concurrent with session

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After Graduation, What? A. The "socia ll y consci ous" corporation's attraction to students . B. Less ening anta gonism be tween "ethically sensitive" students and and the business community . C. Allev iat ing, what white s tudents feel is the principal s ymptom of failure in bu s iness a nd unive rsity -- the underprivileged position of black s . D. New me thods of ma na ge ment development. L e ngthy training programs vs . immedi a te responsibility.

SESSION C, AFTERNOON

(Concurrent with session D)

Minority Group Students and the Business Community

SESSION E, MORNING

(Concurrent with sess io n FJ

Public Relations and the New Youth Attitudes A. B. C. D.

Communication to a lumni . Role of s tud ent newspape r. Effect of radio a nd te levision on student revolts . Effe ct of student confrontations on a lumni contributions . Sh ould bus ine s s pro vide moral support t o the university in time of re be llion?

SESSION F, MORNING

(Concurrent wi th sess io n EJ

Campus Clergymen on Stude nt Protests Reli gious _lea ders a re play in g a significan t role in the socia l cha nge s i n our -country. Clergy me n played a ma jor role in the developme nt of the la bor union move ment in the U. S. They have bee n key fi gures on the ca mpus . They will e xpre s s thei r attitud es on : A. Uni versity obli ga tion to the blac ks . B. Ri ghts a nd freedoms of s t ude nts . C. Stud e nt s it-ins and occupa tion of buildings . D. Protes ts over milita ry recruitin g, CIA, Dow Chemic al. E . Draft protests .

Attend this National Conference in St. Louis you will pick up helpful understanding of the Youth Action of today. ALLAN SILVER Prominent Faculty Nego ti a to r Co l umbia Univers ity Author o f "The Univ e rsity R e b e lli on"

s.

JOHN R. SEELEY

De an Center for the Study of Democra tic Institution s Santa B a rbara, C a lifornia

There a re now 400,000 Black s tudents in college - as well as many Mexican-Ame rican , Pue rto Rican and othe r minority groups. As they ente r bu sine s s, wha t cha nge s w ill ta ke pl a c e ?

ROBERT

A. Employ me nt re cruiti ng of minority group stude nts . B. Reac tion of minority group students to pl a c e me nt in c ommunity re la tions jobs , regardless of their c ollege tra ining. C. Busine s s use of its economic power to a ssure a de qu ate housin g fo r gra duates it hires . D. " Bla ck Stude nt Ca ucus es " hav e wrought ma jor chan ges on the co llege c ampus . The Council of Conce rned Black Executives has been for me d in New York City. As bl a cks in bus ines s unite to help their own pe ople, wha t ch ange s will take place?

JAMES TURNER

TOM HAYDEN

Bla c k Stude nt Leader N o rth w es t e rn Univers ity

Pro mine nt l eader in Studen ts for De mocra ti c Society

SESSION D. AFTERNOON

(Concurr e nt with s e ssion

POWELL , JR. President Na tional Student As so ciatio n Washington , D . C .

C)

Financing Higher Education- A Possible Solution to Student Unrest A. Use of fina ncial grants to stud ents rather than to schools . B. The fate of priva te co lleges under a new fi nancing s ys tem . C. Studen t freedom of choice in where and ho w to purchase education

FR . RA WLIN B. ENETTE, SSJ

RAB BI OSCAR GRON ER

Chapl a in , South ern University Baton R ouge, La. Exec . Committee, Bl ac k C le rgy C au cus

Hillel F ound ation B 'na i B' rith

REV. JAMES SESSIONS

REV. CH ARLES W. DO AK

University Chaplain Massachusetts Inst itute of Technology Chaplain to SDS members

Uni ve rsity Pastor, U . C .L.A . Member, Commission for study of Higher Education & Urban Society

HERBERT L. PACKER Vice Pre s ide nt for Aca de mic Pla nnin g Stan fo rd University

RI CHARD ROSSIE

JACQUELINE COX

Stude nt Body Pres id e n t No tre D a me Un i v e rsity

C ornell Universit y, Ith aca , N. Y .

HAROLD E. EMERS ON Vic e

Pres ide nt De ve lo pm e nt and Alumni R e l a tions Co lumbia Uni ve rs ity New Yo rk

JOE C. SUTTON

WILLIAM E. PERRY , JR. D e pt.

RICHARD R. SULLIVAN President Association of American Colleges Washin gton, D. C.

Blac k stu dent leader

Chi e f

We ste rn El e ctric , N . Y . C ounc il of Concer.n e d Bl ack E xecutiv es

Edito r, Alumni N e ws Un ivers i ty of Illinois U rba na, Ill ino i s

PHILIP DES MARAIS

ROSALIO MUNOZ

Deputy Sec re tary Departmen t of Hea l th, Education & Welfare Washin gton , D . C .

Studen t Bo dy President UCLA

DR. BEATRIC E KON HE IM

JAMES M. GRAHAM

Member, ACLU Committee on St ude nt Rights Academic Dean at Hunter Co ll ege, New York

Vice Presiden t National Student Association Washington , D. C .

ROBERT VA N WA ES

CHARLES PALMER

Ame rican Association of Uni ve rsity Professors Was h ington, D . C .

Student Body President University of California - Berkley

REV. BEYERL Y A. ASBURY

SIDNEY A. TRUND LE

Chap lain Vanderbilt University Nashville, Tennessee

Senior Vice-Pres. Manufacturers Hanover Trust Co. New York, N. Y .

�Mail to: Executive Systems, Inc., 606 State St., Lawrenceville, Illinois 62439 Please make __ reservations for "Turmoil on the College Campus" April 14-16, at the Sheraton-} efferson Hotel, St. Louis , MissourL

TO REGISTER Complete th e form and return to Executive Systems in advance of the seminar. Registration will be limited, and applications will be accepted in the order received . Because of enrollment limitations it is suggested that reservations be made as soon as possible.

Names __________________________ Position ____ Position ____ Position _ __

ACCOMMODATIONS Executiv e Systems does not arrange hotel I accommodations . However, a block of rooms has been set aside at the Sheraton-Jefferson : Hotel. When you send in the attached reservation card we will return a registration card 1 from hotel. You simply indicate th e type of room you de sire , and mail it directly to the I I h o te l.

I

I I I

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�Biographies of a Few Student Participants S.AM BROWN, JR., age 25. Presently Fellow in the Institute of Politics, Harvard University. Student Body President, University of Redlands (Calif.) 1964-65. Chainnan of National Supervisory Board, National Student Associati on 1966-67. Master's degree in Political Science, Rutgers University 1966 (Eagleton Fellow). Chainnan of Alternative Candidate Task Force, 1967 (the effort to replace President Johnson). New York Times Man-in-the-News" March, 1968. National organizer of the Youth for Senator McCarthy. Presently member of the board and executive corrnnittee, Robert F. Kennedy Memorial Foundation. Member, Steering Corrnnittee of the New Democratic Coalition. THOvlAS A. BOURELLY, age 28. Negro. Presently ~andidate for degree of Master of Business Administration, University of Chicago. B.S. degree from Illinois Institute of Technology, in Chemistry and Biological Science. Research chemist for Sherwin-Williams Paint Company since 1962. Presently Chairman of the Black Student Caucus in the Graduate School of Business, University of Chicago. PHILIP TAUBMAN, age 20. History major at Stanford University. Editor (elected) of the STANFORD DAILY, the Stanford student newspaper. 1967-68, Chainnan of the Orientation Program for Entering Students (approximately 1700 students). Member of Joint Student-Faculty-Administration Study Corrnnittee to Re-evaluate the University. Last surrnner was employed as a student intern in business by Hewlett-Packard Company in a program designed to see what roles in business are attractive to the student activist . JOHN GAGE, age 26. Presently candidate for degree of Master of Business Administration, Harvard School of Business. All-American Swimmer 1963-64. Director of Corrnnunity Projects Office, University of California, Berkeley, 1966-68. Bachelors degree from Berkeley in economics. Co-chairman of Robert F. Kennedy Campaign, Alameda\ County, California (California's second largest county). Delegate to the Democratic National Convention. · GIARLES PALMER, age 24. Student Body President -- University of California, Berkeley. Honors student in Political Science. Member of Mexican-American Student Federation. Member, Steering Corrnnittee of Student West Oakland Project (a tutorial program in Oakland city schools). Deeply involved in development of student-owned and controlled economic projects, "In which, " he says, ".students learn about business by being in business." BERNARD H. GUSTIN, age 21, son of a French-Canadian industrialist. Gustin plans to spend his career in the U.S. Presently candidate for Master of Business Administration, University of Chicago, and for doctorate in Sociology. 1966-67 Chainnan, Student Committee on University Development, Wesleyan University (Connecticut). Was a non-partisan observer on the Columbia University rebellion, and at the Paris student revolution, May, 1968. Has just been designated Assistant Dean of Students (eff. Jlille, 1969), University of Chicago Graduate School of Business. seminar TURMOIL ON THE COLLEGE CAMPUS and Its Implications for Business Sheraton-Jefferson Hotel St. Louis, April 14- 16

sponsor EXECUTIVE SYSTEMS, INC . Management Consultants 606 State Street Lawrenceville , Ill. contact: Richard L. Merrill Phone 618/943-3311

�The Urban Coalition

1819 H Street , N.W. Washington , D. C. 20006 Telephone : (202) 223-9500

CHAIRMAN: John W. Gardner CO-CHAIRMEN: Andrew Heiskell / A. Philip Randolph

March 11, 1969

Honorable Ivan Allen, Jr. Mayor City Hall Atlanta, Georgia 30303 Dear Ivan: On behalf of Joseph Keenan, Walter Reuther, and David Rockefeller, I wish to thank you for sending your representative to the February 26 meeting of community development officials called by the Urban Coalition Task Force on Housing, Reconstruction and Investment. The meeting explored the potential for increasing the volume of construction of low- and moderate-income housing through the pooling of a portion of low-income housing starts by several cities -- the pooled market to be supplied by large-scale, efficient developers and builders. The discussion was very productive, and the consensus of the meeting was that the Housing Task Force should move rapidly in concert with mayors, governors, and the Department of Housing and Urban Development to refine the concept into a specific working proposal. We- are now proceeding with this tas k and Messrs. Keenan, Reuther, and Rockefeller will be taking an opportunity to present the proposal to you in the near future. Sincerely,

M

John W. Gardner Chairman JWG:bc

�Gardner Describes Pri ori ty Programs for Federal A ction Action Counci l Chairman John W. Gardner has described "jobs, housing and education" as top priority items for federal action. He was interviewed o n the CBS "Face th e Nation " r:: r og ram Jan;2 6 . Legislative and administr2 tive actions urged b y Gardner included: - - Adequate funding of the Housing Act of 1968, the elementary education program for children from low-income families and manpower programs. --Vigorous enforcement of school desegregation guidelines . - -Economic development of th e black community . - - Extension of the tax surcharge. · - - Support for private enterprise activities in the inner city as a supplement to _federal programs. Gardne r s a id his tas k as head of the Action Council is to make v i v id to p e ople throughout the nation the problems that confront the citi e s and the ste ps l e ading to solutions. This in turn will bri ng th e Congressional action that is nee ded, he said.

ACTION COUNCIL

LETTER LEGISLATIVE BULLETIN OF THE URBAN COALITION ACTION COUNCIL February 25, 1 9 69

Senate Hunger Committee Is Extended With Full Funding The special Senate committee studying hunger in the United States has been extended through this year and given $250,000 for its investigations. Mea.nwhi le, Administration officials ha v e responded to the committee hearings by initiating actions to combat malnutrition problems. The impact of the committee's hearings, which have been going on since December, was clear when Senators on February 18 took the

URBAN COALITION ACTION COUNCIL WORKS ON LEGISLATION . The Urb an Coa lition Action Council was formed, and incorp orated separa t e l y f r om th e Urban Coaliti o n, in the sp rin g of 1968 to mobi li ze p ublic support for n e eded urban l e gislation. The Action Coun cil is a nonprofit tax exemp t organi z ation. Gifts ar e ge n e rall y no t t ax d educti b l e to t he donor . The Action Council works closel y with many other inter e sted org a n iz a tion s and indi v iduals in p ressing for Cong ressional action to mee t the urg en t needs of the cities . Leg islation it has supp orted include s the Housing and Urban De ve lopment Act , fai r housing, t h e ta~ s urc h a rge, and a public serv ice job p ro g r am as we ll a s pr i v at e en t erpris e' s ef fort s to hire and trai n the hard-c o r e u nemp l oyed. I t h as s ought , and c ontinue s to se ek, mor e ad equat e fu nd i ng o f educa t ion, h o us i ng, ma npowe r a nd anti po ve rty le g islati on. · Thi s is th e fir st i ss ue o f the Ac tion Counc il Letter . It wil l be pub l ished o n a time l y b asi s t o r epo r t l eg islati v e deve l opment s in the urban fi eld.

�r rare step of rejecting the recommendations of the Senate Rules Ccmwittee. It had cut the hunger commit.tee's fund request to $150,000. Sen. Georg e McGovern (D-S.D.), chairman of the hunger committee -- officially, the Select Committee on Nutrition and Human Needs -- said the Rules Committee cut would nullify hiE plans to coll e ct f ull statistics showing "the inadequaci e s of our present fooc. programs. " Without a roll-call vote, the Senate agreed to the full $250,000 McGover~ had asked for the study. So f ar, the highJ_j_ght. of committee t e st i mony has been a p relimin a r y report b y a gove rnment surveJ group on the prevalence of hunger in four states studied for a National Nutrition Survey. Dr. Arnold E . Schaefe r , chief of the nutrition progra m of the Public He alth Serv ice , testi fied Janu ary 22 t hat i n v estigations had uncovered widespread maln utrition in low- i ncome are as. He said that 1 6 to 17 p e r c e nt o f the pe r son s examine d were in n eed o f me dical a tt e nti o n f o r p robl e ms associat e d with starvat ion . Earlier, the outg oing Se c retary o f Agriculture , Or v ille L. F r eeman, t e st if i ed that t h e g o v e rnmen t wou ld h ave to s pe nd $ 1 billion more th a n the $1.l billion now b e ing spe n t i f h u n ger i s to be wiped o u t . Fr eeman s a i d a c ruci a l p r ob l em i s " t o ge t the food t o whe re i t i s need e d. "

Administrative Actions Describ i n g fe d e r a l programs for the p o or as "wo e fu lly inadeq u ate ," HEW Se c re t a ry Robe rt H. F in c h a n n ounced February 17 th a t h e h ad o rdered a o e·p a rtme nt -w i de r e view of possible pre ventive a nd reme d i a l a c tions to d ea l with ma l nutrition a n d its c ons e que nc e s . F i nc h a l so as ked for f ull da t a on the relat i onship be t ween menta l ret a rdation and improper

nutrition in children's early years. The first free food stamps for the poorest of the poor were authorized b y Secretary of Agriculture Cli ff o rd M. Hardi n February 19. The pilot p ro j ect in t wo South Carolina counties, if approv ed b y local officials, will prov ide free stamp s for persons who cannot p a y the $3 required in those counties for stamps that can buy $45 o f f ood in local stores. The action had been urged on Hardin b y McGov ern and Sen. Ernest F. Hollings (D S.C.), who h ad made his own inv estig ation o f h unger in his state .

CONGRESSIONAL HEARINGS ESEA -- The House Education and Labor Committe e has b e e n holding h e aring s since Janu a r y 15 on a bill (HR 514 ) to ext e nd the El e me ntar y and Secon d a ry Educ a tion Act f or fi ve yea r s . Committee Chairman Car l D. Perk i n s (D Ky .) r e portedly p l a ns t o h a ve the f ull Committee c o n side r t h e bi ll as soon as hear i ngs end , with t h e hope th a t t h e Hou se wi ll pa s s t h e bill b efore Easte r. HUD Appro p r i ati o ns -- The f irst a p propri a tion h e arin g s of t he ye ar h ave b egun b e for e the Hou se Su bcomm i ttee o n I ndependent Off i ce s and the Department o f Hou sing a nd Urban Deve lopme n t . Th e s u pp l e me ntal a ppropr i ations r equ e sted for t he se a g e nc i es by Pres i d e n t J ohnson b e for e he lef t off i c e are the sub j e ct o f the c los ed - do o r h e arings being h e ld by the Appropriations s ubcommitt ee . Subcommi tt ee h earings on the prop os e d fisc a l 197 0 b u dget f or the s e age n c i es , covering the fi s ca l y e ar tha t be g i ns J ul y 1 , wi l l start i n l ate Ma rch . Re location and Land Ac quisi tion - - Se n . Mu s ki e ' s Su bcommi ttee on Inte r gove rnment a l Re l at i ons has begu n hear ings on h is Uni form Relocati on Assis tance and Land Acquisition bi ll (S 1 ) .

�Urban Affairs Council Meets With Action Council Leaders Chairman John Gardner and a group of Action Council leaders met February 17 with President Nixon and his Urban Affairs Council to discuss a number of proposals. The list was not made public, but Gardner told newsmen that among the proposals were federal standards for welfare payments, expansion of pre-school and early education programs and revitalization of the attack on poverty. Full funding of the 1968 Housing Act and manpower p rograms also were urged, Gardner said. While the President made no commitments, "the reaction was fa v orable, I believe," Gardner added . A statement by the President was released b y the White House. It described the meeting as "most

productive," warmly praised the Urban Coalition's efforts, and called on business leaders "to lend active support to the Urban Coalition." Council Studies -- The first product of studies by the Urban Affairs Council was made public February 19 when President Nixon sent Congress a message asking for a one-year extension of the present anti-poverty agency. That would allow time for a comprehensive study of the future of the Office of Economic Opportunity, Mr. Nixon said. As a first step, however, he has ordered the transfer of several activities from OEO to regular departments. The Head Start program for pre-school children, neighborhood health centers and the foster grandparents plan will be delegated to the HEW Department by July 1. The Job Corps will be administered by the Labor Department.

The President's Counci l for Urban Affairs: standing from left to rig ht, Sec retary Sh ul tz, Budget Burea~ Direct~ r May o, Coun se llo r Burns, Attorney General Mitchell, Secretaries Volpe and, hidde n, Finc h, Vice President Agnew, Secreta ries Hardin a nd Ro mney, Executive Secretary Moyn ihan , Secretary Stans.

�Among other issues now under study by the President's Council on Urban Affairs is whether to extend the Model Cities program to more than the 150 cities now participating in it. The y have received funds to prepare plans for a concerted attack on all aspects of blight in selected inner city areas and will receive additional federal aid when their plans are completed. The 1968 Housing and Urban Development Act authorized inclusion of additional cities in the program, but the fiscal 1970 budget submitted by President Johnson before leaving office recommended funds only for the 150 programs now under development. Mr. Johnson proposed $750 million for supplementary grants in fiscal 1970 and an advance appropriation of $1.25 billion for the next year, to aid the cities' long-term planning.

John Gunther of the U.S. Conference of Mayors talks with Wayne Smithey of the Ford Motor Co . while, in the back, Mark Keane of the International City Managers Association and Tom Hannigan of the Brotherhood of Electrical Workers talk together .

Action Council Discusses New 91 st Congress Member s of the Action Council staff met January 8 with Washington representatives of Policy Council members to discuss the outlook for urban legislation in the new Congress. With little change in membership from the previous Congress, the 91st Congress is not expected to make radical changes in e x isting programs but will need considerable encouragement to move forward fast enough on current problems, it was generally agreed

at the meeting. The most urgent need is for full appropriations to carry out major programs for the cities that previous Congresses have authorized, many participants said. Among those participating in the meeting was a good cross section of the Action Council's constituents. Included were representatives of municipal groups, business, labor unions and spokesmen for civil rights and religious organizations.

The Urban Coalition Action Council 1819 H St., N.W. Washington , D.C. 20006 Tel: 202 293-1530 Chairman , John W. Gardner Co-Chairmen: Andrew Heiskell A. Philip Randolph Executive Di rector: Lowell R. Beck Legi sla t ive Associates : Joh n P. Lagomarcino Ronald J . James Ass istant for Legis la ti ve Information: Georgianna F. Rathbun

Ronald J . James, an attorney in Waterloo, Iowa , and former executive director of that city' s Com mission on Human Rights, joi ne d the staff of the Urba n Coali tion Action Council Feb. 17. A graduate of the University of Missouri, Jam es worked for Congressmen Rum sfe ld (R Ill.) and Bromwell (R Iowa) whi le studying fo r hi s law degree at American University .

~

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�House Hearings on Poverty Forecast Floor Fight on OEO Hearings on legislation to extend the antipoverty programs of the Office of Economic Opportunity (OEO) for five years began in the House Education and Labor Committee March 24. Comments at the opening hearing made clear that committee members will be sharply divided over a one-year or fiveyear extension of OEO. President Nixon has asked for a one-year extension, saying that would allow time for his Administration to conduct a comprehensive review of antipoverty programs. However, the House chairman, Rep. Carl D. Perkins (D Ky.), favors a five-year extension and has introduced HR 513 to accomplish that. Continued on Page 2

ESTIMATED DISTRIBUTION OF THE 25.9 MILLION POOR PERSONS IN \Qb7 BY STATUS OF HOUSEHOLD MEAD

32%

23%

~EAD•WORKED i:ULL YEAR

AGED ~EAD 5.9 MILLION

8.2 MILLION

~EAD,,WORKED PART YEAR 6,5 MILLION

14%

2.50/4

  • Employment status oF non-disabled,

non-aged household heads

ACTION COUNCIL

LETTER LEGISLATIVE BULLETIN OF THE URBAN COALITION ACTION COUNCIL

April 11, 1969 -- Vol. I, No. 4

HEW Proposes Increased Funds For Community Health Centers Much larger federal grants for outpatient clinics, neighborhood health centers and skilled nursing homes have been proposed to Congress by the Department of Health, Education and Welfare. HEW Secretary Robert H. Finch asked the House Subcommittee on Public Health and Welfare March 25 to rewrite the Hill-Burton Hospital Construction law to put increased emphasis on outpatient health care. "The distances traveled and hours spent in waiting for such services by millions of our people testify to the critical nature of this need in almost every community," Finch said. Sen. Jacob K. Javits (R . NY) has introduced a bill (S 1733) that carries out the HEW propos als. It authorizes $150 million this year for allocation by the states to the facilities Finch suggested. However , the present federal program of grants for acute - care hospital beds would be changed to a federally guaranteed loan program , without interest subsidy to the hospitals.

The Action Council Letter reports legislative deve lopments in the urban fie ld It is published by the Urban Coalition Action Counci l, which seeks needed urban legislation

�ty Action Program and closely related activities , such as VISTA . Other programs should be trans~ ferred to established Departme n ts , the GAO report said . Comments by Sen . Nelson

Continued from Page 1 In opening the hearings, Rep. Perkins said a one-year extension would be "demoralizing" to the poor who have found hope in the government's antipoverty efforts. He said that OEO programs needed the "stability" that a long extension provides. He also criticized the President's plans to transfer four OEO programs, including Head Start and the Job Corps, to long-established Departments. GAO Report A lengthy and generally f a v orable report on the OEO was is sued March 18 b y the Gene ra l Ac coun ting Offic e. The GAO, which i s often ref erred to as Cong r es s' "watchdog" over the e x e c ut ive departments , was di r ected by Cong r ess in 1967 to dete r mine the efficiency of OEO p rograms and the e x te n t to wh i ch t h ey a ch i eve t he obj ec tiv es o f the Econ omic Oppo r tunity Act , the basic antipo v e r t y law of 1964 . The ma j o r reco mmendati o n o f th e GAO wa s that the P r esident es tab lish in h is Ex ecu t ive Office a wel l - s t aff e d off i ce respo n sible f o r broad plann i n g , coo r d i nation and evaluati o n of all the g o v e rnme nt ' s a n tipove r ty effo r ts. The OEO would c ont inue as an indepe nde nt agen cy to ope r a t e the Communi -

The report was dismissed b y Rep. Perkins as "not worth the paper it is written on , " b ut mo r e favorable comments came from h is Senate counterpart , Gay lord Ne l son (D Wis.) . Se n . Nelson is chairman of the poverty subcommittee of the Senate Labor and Publi c Welfare Committee . In a statement Mar ch 19 Nelson said : "Some enemies of the war on poverty apparen t ly h ad h o p e d that this report would j u st i f y a surrender of this u n der - f inanced , late-starting effo r t to he lp millions of Americans escape from poverty . It does n o s u c h thing . " It simp ly t e ll s t h e White House that fighti n g pov e rty i s such a big tas k th a t i t mu s t be supervise d b y t h e Pre side nt a n d t h at t h e f i gh t mu s t be coord inate d throughout t h e vast fed e ral bur eaucracy. I t tells th e Con g r ess th a t programs c annot functio n if approp r i ati o n s are wi thh e l d o r s er ious l y delay ed . I t te ll s b oth OEO a nd the many age n c i es -- f ederal, s tate and local -- with whi ch i t work s that met iculo us r e co r d k ee ping a nd evaluat i o n a r e vita l if the p o ve rty prog r am i s t o achieve its objec tives . " Nelso n said the GAO's recommendati o ns o n t h e whole were "construc t ive and fo rward - l o oking."

Discrimination Study Cites Obstacles in Upgrading Jobs Th e n e ed to upgrade emp l o yme n t opportunities for membe r s of mino r ity gro up s is getting inc r ease d atte ntion. It is b u ttresse d by s t atistics in a recent g ove rnme nt r e port showing that racial di s crimination , rathe r than lack o f s kills or education , holds back the ad-

�vancement of Negroes, Spanishspeaking Americans and Indians. The president of the National Alliance of Businessmen, Donald M. Kendall , told an April 1 meeting of bus i nessmen participating in the JOBS program for the hard-core u n employed that the major need is to provide jobs with marketable s kill s , not just menial jobs. As e vidence of discrimination in u pper- l evel positions, Kendall s ai d that of some 50,000 corporate o ffi c ers in this country, only two dozen are blacks. Th e statistical report on discr i mi n ation was issued in March by the Equal Employmen t Opportunity Commi ss i o n. Amon g industries

where discrimination is most prevalent, the report said, are those with a large proportion of wellpaid employees with better-thanaverage educational backgrounds. The EEOC found that minority group employees who succeed in getting jobs in such companies "can expect few promotions." Proposals for developing marketable skills in lower-level jobs were made in the General Accounting Office's review of antipoverty programs. It found that "intensive classroom and work-experience programs" are essential to develop skills needed to rise above the helper and laborer categories for workers.

Congressional Liaison Men Named for HEW, HUD, Labor The Depar tments of Health, Educat ion and Welfare, Housing and Urba n Deve l opment, and Labo r h ave n e w appoi n te es in c harge o f car r ying their legislat~ve programs t o Con gre ss. Th e Ur ban Coalition Ac ti o n Council ha s had me e ting s with these officials a nd plans to k e e p in close touc h with the l e g i slative programs t h ey deve l o p. HEW liai son with Congress i s in charge of Cree d C. Black, Assis tant Secretary for Legislati on. A newspaperman and editor, with an M.A. in political science fr om the University of Chicago, Bl ack was executive edito r o f the Chicago Daily News unti l h e joine d HEW . His principal d epu ty, with responsibility for educati on leg islation, is Charles B. Saunders Jr. Saunders has been assistan t to the president of Brookings I n stitution since 1961, and b efor e that was an assistant to fo r mer HEW Secretary Arthur S. Flemming . The Assistant for Congressional Affairs for the HUD Secretary , George Romney, is Jack Woolley , former director of government relations for the TRW Systems Group, a Redondo Beach, Calif., space and defense contractor. A graduate o~

Two Deport mentol Congressional Liaison Officers Creed C. Block, HEW

Jock Woolley, HUD

t h e U.S. Me rchant Marine Ac ademy, Wool ley g a ined Was h i ngton expe rience as l egis l ative affairs as sis t a nt to the Secre tary of the Navy a n d to the Se cre tary o f Defense in t h e Eisenhower Administration. The La bor Departme n t 's new Special Assistant for Legislati v e Af fai rs is William L. Giffor d, a f o r me r stude nt o f the law a nd politica l re p or t er. From 19 59 to 196 8 he was t h e admi n is t rat ive assistant to t h e n -Representat ive Char l es E . Goodel l , now a U. S. Senator from New York . Gi ffor d is a graduate of Fordham Un i versi t y .

�Democratic, GOP Urban Plans Issued by Economic Commit tee

dividual and the economy and should be expanded and improved: -- consolidate various approaches into single comprehensive program; -- insure that MDTA programs train people for skills in demand; stimulate job training through Federal tax credits; -- improve job information and worker mobility; -- recognize that overly rapid increases in the Federal minimum wage may reduce employment opportunities; -- intensify efforts to reduce discrimination in employment. Welfare and poverty: -- recommend guaranteeing employment opportunity rather than guaranteeing income as best approach to alleviating poverty; -- study national minimum level of welfare assistance with increased Federal support; -- e x pand efforts to stimulate welfare recipients to become more self-sufficient. Improving the urban community: -- e x pand resources available to State and local governments; -- revenue sharing should be seriously considered; -- enlist the help of the private sector in community development through approaches such as the Community Self-Determination Act; -- improve the quality of housing through activation of th e National Cor poration of Hous i ng Partnerships and fair housing , zoning and tax r eforms .

Recommendations for action in the urban field were made in an April 1 report by the joint Congressional Economic Committee. Democratic Recommendations Employment, manpower and training programs should be expanded and improved by: -- providing comprehensive coordinated assistance; -- meeting critical skill shortages such as medical services and housing; -- adding to the JOBS Program, conducted by private business, a public sector program to hire the disadvantaged for public service jobs. Income maintenance (welfare) programs for those unable to work are underfunded and uncoordinated. They must be improved by: -- provision for equal treatment of every needy citizen regardless of location; -- establishment of a single local office or representative to whom the needy can turn with assurance for assistance. The highest priority must be given to developing programs for a massive environmental reconstruction of urban and rural America, including : - - allocation of the necessary resources, both public and private , to economic development of max imum social impact; -- achievement of the goal of a decent home and a suitable living environment for every American famil y, as provi ded for by the Housing and Ur ban Development Act of 1968 ; -- i n c r eas e d funding for an t i poverty progr ams , especially o n t he neighbo rhood le v el , and fo r the mo de l citi es prog r am.

The Urban Coalition Action Council 1819 H St., N.W. Washington , D.C. 20006 Tel : 202 293-1 530 Chairm a n: John W. Ga rdn er Co-Ch ai rme n: Andrew Heiske ll A. Phi li p Rand ol ph Exec utive Director , Lowe ll R. Beck l egis la ti ve Associates: John P. Lag om arcino Rona ld J . James Ass istant for Legis lative Information : Georgianna F. Rathbun

Republican Vi e ws Employment , manpower a nd training prog rams b e n e fi t t h e in ~

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�Kerner Commission Findings After One Year Reviewed "One Year Later," a review of what has been done, and not done, to meet the urban crisis since the Kerner Commission report of March, 1968, has been issued. The sponsors are two private, nonprofit organizations, the Urban Coalition and Urban America Inc. After presenting up-to-date data on social and environmental problems in the nation's inner cities, the review concludes that "we are a year closer to being two societies, black and white, increasingly separate and scarcely less unequal." Copies of "One Year Later" may be ordered, for a small charge, from the Communications Division of the Urban Coalition, 1819 H St., N.W., Washington, D.C. 20006.

THE BUILT-IN BOMB Reprinted Jrnm "Tlte Herhlnc k Gallen ·," Si m on and Schus ter. / 96R .

ACTION COUNCIL

LETTER LEGISLATIVE BULLETIN OF THE URBAN COALITION ACTION COUNCIL March 7, 1969 -- Vol. I, No. 2

Funds for Low Income Housing Head Action Council Agenda Supplemental appropriations for the low-income homeownership and rental programs of the 1968 Housing Act, and for administration of the fair housing law, are a priority goal of the Action Council . The two laws were enacted by Congress last summer but received only partial funding -far less than was needed for a good start . The new programs for lowincome families are k nown , in housing law jar gon , as Section 2 35 and Section 236 . Pri v a t e f ina ncing , b u t t r essed b y fede r a l inte r es t s ubsid i es , i s the k ey to both t h e homeowne rs hip prog r am , Sect i o n 2 3 5, a nd t he r e n ta l p r ogr am , Sect i o n 2 3 6. Low and mode r ate - inc ome f a milies will be able to b uy hou ses f o r up to $15 , 000 , spe n d 2 0 % o f the ir mo nthly i n come o n mor tgag e p ayme nts, a n d t h e FHA wil l pay t he remaining mo r t gage co s ts . Similarly o n Sec ti o n 23 6 rent a l units, the Govern me nt will pay to the nonp r ofit s po ns o rs the difference between the inte rest cost of a conventi o nal mortgage and an interest rate of 1%. The first homeownership in-

�terest contracts were made in October. On the average, they were for houses costing $12,152. The average interest subsidy was $33 . 88 a month, for owners with monthly income of $430. The Housing Act authorized FHA to sign contracts for $75 million under Section 235 this year. Congress, however, allowed only $25 million. The same figures also were set for the Section 236 rental program. A House Appropriations Subcommittee is now considering budget proposals submitted by former President Johnson requesting an additional $50 million contract authority for each of the two programs . His request for the nex t fiscal year, starting July 1, was $100 million for each program. The fair housing law received an appropriation of only $2 million from Congress. The Johnson budget proposes a supplemental $2 million for administration of the law plus $14.5 million for the ne x t year.

Sen . Ra lph Yarborough Becomes Chairman of Labor Committee The Senate Labo r and Publi c Welfare Committee, which han dles manpower, a n ti p o vert y, educati on a nd health l e gisl a t i o n, i s u nde r n e w leaders h i p t h is year. Ret i reme n ts and election defeats have produc e d n e w c h ai r men f o r t he f ul l committee a n d for its eigh t sub comm ittees . De moc ra t s r e main in t he ma j o r ity o n t h e c o mmi ttee but the Re p ubl ica ns have o n e addit i ona l seat thi s ye a r. Se n. Ralph Yarborough of Texa s i s t he n e w c ommi t tee chairman. He al s o ha s taken over as head of t h e Subcommittee on Health . Other key s ubcommittee chairmen include: Claiborne Pell (D -R.I.), Education; Gaylord Nelson (D Wis .), Subcommittee on Employment , Manpo wer and Poverty ; Harrison A. Williams (D N.J . ) , Labo r;

Senator Ralph Ya rborough

and Walter F . Mondale (D Minn.), Migratory Labor. Sen. Jacob K. Jav its (R N.Y.) remains the top-rank ing Re p u bl ic an on the committee . Th e n e w GOP members, all f r es h men , are Willi a m B. Sax be (Ohio) , Richard S . Sc h wei k er (Pa . ) a n d He n r y Be l lmo n (Okla . ) . The new De moc ra t s a re fr es hmen Thomas F. Eag le t o n (Mo .), Alan Cranston (Cali f. ) and Har o ld E . Hughes (Iowa) .

CONGRESSIONAL HEARINGS Re l ocat io n and Land Acquisition - - Senate subcommittee heari ng s have been completed on the Unif o rm Relocation Assistance and Land Acquisition bill (S 1). The Ac t ion Council suppo rts t h e bi ll , which would provide rel ocation payments and other assistance to persons displaced by any federal program or any federally aided state or local program. The last Congress approved this kind of aid on federal highway and housing projects and the new bill would extend this to other pro grams on a uniform basis. Post offices and other federal buildings and federally aided projects such as hospitals and college Continued on Page 4

�Congre ssmen Take City Tours To Learn of Urban Programs Small groups of Congressmen are mak ing two-day trips to major c ities to learn at first hand of u rban problems and programs. The tours are sponsored by the U.S. Con ference of Mayors for the benef it of Congressmen from rural a r e a s and small cit ies. Members o f the Urban Coalition Action Council staff are participating in t h e tours . Visitin g Atlanta, Ga., Jan. 31 a nd F eb . 1 were fi v e Represent a tive s -- We ndell Wyatt (R) of Astor ia, Ore., J ames F. Hastings (R) of Al l egan y , N.Y. , W. s. Stuc k e y (D) of Eastman , Ga . , J a mes R. Ma n n (D) of Greenville, s.c . , and Pau l Mcclos k ey (R) of San Mate o , Ca l if . The five wer e g i ven an i n t roduction t o Atlanta' s prob lems by Mayor Ivan Allen, who i s on t h e Action Council ' s b oard. Allen t old the group t h at t h e city ' s p rogress in urban deve lop me nt was due in la rge part to f unds appro priated by Co n gre s s . After hear ing other city of-

ficials discuss their programs the Congressmen toured the Model Cities and urban renewal areas and visited antipoverty agencies . Afterwards, Rep. Wyatt commented that there is no , domestic problem "more urgent than that of the American city . " A similar trip was made to Dayton, Ohio, Feb. 21-22. The city's Congressman, Charles W. Whalen (R), was host to the group, which included Rep. Mann and three others -- Rep. Bill Alexander (D) of Osceola, Ark., Robert C. McEwen (R) of Ogdensburg, N.Y., and William L. Hungate (D) of Troy, Mo. Among the programs the Congressmen studied was the coordin a ted manpower programs oper ated by the federally funded local CEP office. CEP stands for Concentrated Employment Plan. It tries to concentrate a v ailable job resource s within areas o f hig h une mployment and pove rty. I n both cit ie s the Congr e s smen got a glimpse of crime problems by riding in police cars for a nigh t-time tour of pote nti a l trouble spots. Lat er trips a r e p lanne d f or New York and Bo s t on .

In Atlanta City Ha ll, Rep. McCl oskey takes notes as Rep. Hastings, on the far left, listens. Clockwise, fac ing t he camera, are Rep. Wyatt, Vice Mayor Sam Massei!, Reps. Man n a nd Stuckey, Action Council executive di rector Lowel l Beck and Janet Ko hn of the Conference of Mayors.

�Continued from Page 2 buildings are examples of programs that often displace inner city residents and businesses who badly need help in relocating. Provisions similar to those in S 1 were passed by the Senate, but not by the House, in the last Congress. The House Public Works Committee held hearings late last year on similar relocation bills but took no action on them. As yet, the House committee has not scheduled further hearings for this session. Senate passage probably will come first.

Urban Coal ition Action Counci l Adds 2 1 New Members to Board An expanded Policy Council, the policy body for the Urban Coalition Action Council, met for the first time February 26. Twenty-one new members joined the Council, bringing the total membership to 59. John W. Gardner is the chairman. Of the new members, si x are women -- the fi r st to serve on the Council. They are Mrs . Bruce B. Benson, president of the League of Wome n Voters of the U. S . ; Mr s . Amalia V. Betanzos , e x ecutive dir ector of the Puerto Rican Commun i t y Dev elopment Project in Ne w Yo rk City; Mr s . Fr e d R . Harr is , chai r man o f the Women 's Counc i l on Pov e r t y, OEO; Mrs . Patr icia R . Harri s , Howard Unive r sity Schoo l o f Law; Miss Do r o thy I. Hei ght, pr e sident of the Na ti o nal Council o f Negro Women; a n d Mr s . Ai lee n C . Hernandez of San Francisco , fo rme r

member of the Equal Employment Opportunity Commission. The 15 other new members are Julian Bond, Georgia state legislator; Paul W. Briggs, superintendent of schools for Cleveland, Ohio; Daniel J. Evans, Governor of the State of Washington; Herman E. Gallegos, executive director of the Southwest Council of LaRaza; Ernest Green, director of the Joint Apprenticeship Program in Brooklyn, N.Y.; Richard G. Hatcher, Mayor of Gary, Indiana; Dr. _Vivian W. Henderson, president of Clark College, Atlanta, Georgia. Also, Richard J. Hughes, Governor of the State of New Jersey; Roy Innis, national director of CORE; Dr. Howard Johnson, president of MIT; Edgar J. Kaiser, chairman of the board of Kaiser Industries; Robert S. Powell Jr., president of the National Student Association; Carl B. Stokes, Mayor of Cleveland, Ohio; Rev . Andrew J . Young Jr., e xecutive director of SCLC; and Dr. Mark Shedd , superintendent of schools for Philadelphia . Before adding the new membe r s the policy group consisted of 13 businessmen, 6 union officials , and 19 may ors, civil rights and religious leaders .

The Urban Coalition Action Counci l 1819 H St., N.W. Washington, D.C. 20006 Tel : 202 293-1530 Chairman: John W. Gordner Co-Chairmen: Andrew Heiske ll A. Philip Randolph Execu tive Director: Lowell R. Beck Legislative Assoc iates : John P. Logomorcino Ronald J. Jomes Assistan t fo r Legislative Information : Georgia nna F. Ra t hbun

On the left, new Policy Council members Mrs. Benson of the League of Women Voters and Mrs . Betanzos of the Puerto Rican Com mun ity Development Projec t, wit h Mayor Cavanagh of Det ro it. On the right, Rev . And rew Young of the Sout hern Christion Leade rship Conference, also a new Council me mbe r.

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�CLASS OF SERVICE

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The filing time shown in the dace line on domestic telegrams is LOCAL TIME ac point of origin. Time of receipt is LOCAL TIME at point of destination

408p EST DEC 21 68 AA~ 7

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THE URBAN COALITION WOULD LIKE YOU TO ATTEND A SMA LL CONFERENCE OF KNOWLEDGEABLE PERS?NS TO DISCUSS "ANTI-POVERTY PROGRAMS; OPTIONS FOR THE FUTURE" TO BE HELD AT AIRLIE HOUSE WARRENTON, VIRG!NIA, JANUARY .9TH THROUGH 11TH• COORDINATOR FOR THE CONFERENCE

WILL BE LISLE CARTER HE WIU. WR ITE FURTHER DETAILS. Pl.EASE IND I CATE YOUR ACCEPTANCE TO LEDA ROTHMAN AREA CODE 202 22~ 95

~~\IN W GARDNER CHAIRMAN 9 11 202 223 9500.

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�~-·-* THE URBAN COALITION ACTION COUNCIL

JOHN W. GARDNER

CHAIRMAN 1619 H STREET. N. W.

WASHINGTON, D. C. 20006

Community Self-Determination Act of 1968 Senate Democratic Version s. 3875 Senate Republican Version s. 3876 House Democratic Version H. R. 18976 House Republican Version H. R. 18460 Title I

(All Title references are to S. 3875)

Title I creates a National Community Corporation Certification Board (NCCCB) and outlines the procedure and purpose of individual Community Development Corporations (CDC's). The NCCCB acts much like the National Labor Relations Board in its union certification procedure. It will be composed of five members, and its primary functions will be the issuance of corporation charters, conducting and supervising referenda, service as counsel to the CDC's and as an information center for parties interested in forming CDC's. A National Advisory Commission advises the NCCCB but does not have direct impact on the latter's specific activities. Section B of Titl~ I states the structural outline of a local CDC. This is the heart of the Act. It would have a broad social improvement purpose as well as the promotion of business activity. CDC's operate in areas in which the 16-year and up population ranges from 5,000 to 300,000. The geographic area within which a CDC would operate is designated by the applicants for a CDC charter . Any resident within the designated area may be a shareholder of the corporation, but the Act requires that a minimum of 10 per cent of the 16-year-old and up population residing within the area hold stock in the CDC. The shares would have a par value of $5, and each shareholder would have one vote in corporate matters, notwithstanding the number of shares the shareholder a ctually holds. The functions of a CDC fall into si x categories. First , neighbo r hood services and community improvement , including but not limited to public welfare programs , day ca r e centers ,

T E LE PH ON E : 20 2 29 3 -153 0

�-2consumer education, job placement, legal aid, etc. Second, it would own stock in businesses in the CDC area. Third, it would sponsor, own, or manage housing facilities within the CDC area. Fourth, it would be an advocate planner for neighborhood and community renewal projects. Fifth, it would serve as a representative of various community interests in other areas of public policy and concern. Six th, it would encourage various other elements of the community such as business, labor, religion, and so forth, to become active in voluntary community self-help efforts. A CDC would be financed by earnings from affiliated businesses, grants from community development funds, foundations, trusts, etc., and from contracts with privately owned businesses, government agencies, and other entities for specified services or products. The CDC would have nine directors and two additional directors for each 10,000 shareholders of the corporation in e x cess of 25,000. The directors of the corporation would select the executive officers as well as the Business Management Board. The latter's p r imar y f unction i s to p r ovide ove rall manage me nt exp e rtis e and a s sistance t o thos e af filiated businesses owned . by the CDC. The full area of responsibility of the members of the BMB would be spelled out in the CDC charter but would be phrased primarily to afford the BMB max imum latitude to manage CDC owne d busine ss e s and allow fo r the purchase o f othe r e nterp ris e s. CDC' s can be orga ni zed b y a ny fi v e o r more re side nts o f a speci f ic area covering a population range from 5,000 to 300,000, 16 years and older. For any designated area to be eligible for a CDC, howe v e r, the r a t e o f unemploy me nt must be h igher than the n a tional ave r age or t h e med i a n family in c ome b e propor t i ona t e l y lowe r th a n the national a v e r age . Af t e r a ppl ication is made f o r a CDC c h arte r , a 6 0 -day period mu st e l apse so as to allow any other interes t e d group within the same area, or an o ve rl a pping are a, the opp ortunity to o rganize its own CDC . Before the NCCCB will grant a f inal c h a rter to a g r oup of a ppl icants , the a pp l i c a n ts mu st h ave received ple d ge car ds f o r the p u rchase of stock from a min i mum of 5 per ce n t of t ho se eligible to purchase stock within the designated area of operation. This insures a minimum l eve l of community support. If the applicants cannot obta in pledge cards from the minimum 5 p er cen t, the char t er appl i cati o n i s rejec t e d . Once the p l edge cards are received from 5 per cent of the population, a conditional charter i s i ssue d. At that p o int, the CDC has 45 days in which to obtain additional pledge cards covering 10 per cent of the area's population. F ive hundre d peop l e must have paid in at l east $5,0 00 f o r CDC stock. During t h e

�-3-

45-day period the pledge money is kept in escrow pending further action toward issuance of a final charter. During the period in which a CDC attempts to raise the minimum level of funds, an additional determination is being made which indicates the relative economic need of the area in question. A Development Index is figured for the area. The Index is the lesser of two ratios: First, the ratio of the national rate of unemployment to the area's unemployment rate x 100, or second, the ratio of the nation's median family income to the area's median family income x 100. If the Development Index of a conditional chartered CDC is found to be 90 or above, the charter is dissolved because the CDC is considered too close to the national average of 100. A special bonus is afforded those rural areas from which outmigration is contributing directly to specific urban tensions. If only one conditional CDC is left within a given area, a vote is then held in which a majority of those voting must approve the applicants. If a majority of those voting do approve, the final charter is granted; if a majority disapprove, the charter is dissolved. In the case of competing CDC's within a given area, referenda are held for each competitor, starting with those representing the geographic area encompassing the highest level of population. If none of the competitors within the largest given area are accepted, a vote is held for those CDC's competing in the next smallest geographic area, etc., until such time as one CDC is approved by the requisite majority of those voting. At least 10 per cent of the eligible voters must actually cast a ballot for any referendum to be valid. Once a CDC is established, a one-time seed money grant is made to the corporation in an amount equal to its current paid-in capital. Title II Title II provides for the establishment of Community Development Banks (CDB's), which are organized by CDC's . CDB's operate in an area of 25,000 or more people, 16 years and up, and concentrate on financial services to the area in quest ion . They provide both business financing and consumer credit to indi vidual CDC shareholders. Equity capital is obtained through the sale of stock to 1)

the Secre tary of the Treasury (Class A),

2)

any groups or individuals other than the Federal Government and CDC's (Class B), and

3)

stock sold only to CDC's (Class C).

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Class A stock would be nonvoting and repaid by a franchise tax on the CDB's net earnings. Class B stock would be nonvoting but receive dividends. Class C stock would not receive dividends. The latter point is made so that the CDB becomes a necessary financial mechanism for the establishment and proliferation of CDC activities but does not become a source of income. Income bonds would be issued to the public to provide additional equity and debt capitalization. CDB net earnings would be first applied to make up any bad debts and restore any impaired capital. The payment of stoc~ dividends is a lessor priority. Loans are made to the following individuals and businesses: 1)

CDC shareholders for normal consumer credit;

2)

a small business, 75 per cent of which is owned by resident CDC shareholders;

3)

a small business, less than 75 per cent of which is owned by CDC shareholders, so long as the CDC in whose area the business is located is given the right of first refusal when the business is sold;

4)

a subsidiary of a CDC, 51 per cent of which is owned by CDC shareholders;

5)

outside corporations with turnkey contracts with a CDC;

6)

cooperatives, 75 per cent of whose members are CDC shareholders; and

7)

nonprofit housing sponsors operating within the community serviced by the CDB.

An applicant for a business loan must have a minimum level of business experience and exper tise, or have contracted with a company or service to obtain the necessary business training. Loans of up to 90 per cent of the required capital may be made on terms of up to 20 years for repayment . Housing sponsors can receive money for "front-money" or construction loans. Unorthodox and high risk ventures are encouraged as long as they would yield significant community benefits. Participation loans are encouraged.

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-5The primary purpose of a CDB is to channel capital to business ventures. Its secondary purpose is to provide normal banking services to people in impoverished areas. Title III Title III creates a United States Community Development Bank, which would serve as a secondary financial institution and as a source of technical, financial, and managerial expertise to CDB's. It would serve also to promote economic development in those poverty-stricken areas where no CDB's exist. The USCDB would have the same relationship to CDB's as a federal intermediate credit bank has to local commercial banks. The USCDB would have the same relationship to those areas not serviced by CDB's as the World Bank has to underdeveloped countries. Although not an instrumentaility of the Federal Government, the President would initially appoint the incorporators and first directors of the USCDB. Eventually CDB's holding stock in the USCDB would name some of the directors. Capitalization would be provided through stock sales. The Secretary of the Treasury would hold nonvoting, nonpaying, Class A stock purchased through funds provided by a Congressional appropriation. Class B stock would be held by anyone other than the Federal Government, CDB's being eligible to purchase such stock. The USCDB is authorized to issue bonds, debentures, and other certificates of debt up to 5 times its paid-in capital and surplus. Its primary functions are to provide secondary banking services to CDB's through discounts, loans, notes, advances, and so forth, and to make loans for business and community facilities or public development facilities in low-income "investment areas," designated by the Secretary of Labor. It provides interim construction financing for facilities which it may also plan, initiate, own, and manage until such time as the facilities are purchased. It provides management assistance to CDB's as well as other borrowers and generally creates new investment opportunities by bringing together facilities, capital, and management. A CDB may establish branches. USCDB earnings are to be applied in the following order : 1)

restoration of any capital impairment ,

2)

creation and maintenance of a surp lus account,

3)

payment of a franchise tax with re f e r e n ce to the amount of Class A s t ock h e l d b y t he Secretary of the Treasury ,

4)

establishment of contingency rese rves ,

�-65)

dividends on Class B stock up to 6 per cent of earnings, and

6)

retirement of Class A stock held b y the Treasury.

Title IV Title IV authorizes certain Federal tax advantages for CDC and turnkey corporations. All tax advantages granted to CDC's are applicable until the Development Inde x for the designated CDC area reaches the national average for fi v e years. Title IV would amend the Internal Revenue Code to permit each corporation in a group of CDC subsidiary corporations to retain its individual surtax exemption and pay its regular corporate tax on any thing over the $25,000 at a 22 p er cent rate rather than 28 per cent. Tax rates and surtax exemptions are liberalized depending upon the area's Development Inde x , with provis i ons for greater tax advantages to those CDC's operating in areas with the lowest Development Inde x . In addition, the Internal Revenue Code is amended to attr act turnkey companies into the CDC area. Turnke y comp a nies can tak e advantage of rapid amortization schedules for its facilities . Again, the rate of amortization depends on the rate of the Development Index with the shorter periods of amortization being made available to those companies which inv est in the poorest areas. A 10 per cent tax credit on wages and salarie s o f CDC shareholders e mploy ed in the turnk ey facili~y is granted to the turnke y company . This is called a human investment tax credit . The 10 p e r cent figure comp ares with the 7 per cent investment credit on machinery investment, though is higher b e cause of the impermanence of the inve stment in human skills . It is a r gue d that the credit must be highe r to induce the tu r n k e y corporation to i nvolve its e lf in impover ished are a s . The turnkey comp any is not r e quire d to pay c apital gains tax on th e s a le of a turnkey fa c ility if t h e sale p rofits are rei n v e ste d in another turnkey o pe r a tion or in Class B stock o f a COB . A tu rnkey co r porati o n would b e e ntitled to a sustai ned profita bility t a x credit eq u a l to 15 pe r c ent o f the profit s g enerated fr om t u rnkey o pera t i o n s fo r f i v e ye ars af te r t he sa l e of a faci l ity to a CDC . Th is latte r p r o vi sion p r e sumably gu a r antee s th e de v e lopme nt of the stronge st fi n an cia l operat i on th e t ur nk e y c omp a ny can en c o u rage . Title V If a CDC is no t a d i v idend-p a ying c o rp o ration , it can be treated as a CAP agency under t he Ec o nomic Opportunity Act . The Sma ll Busines s Admi n istration is a uthorized to make grants to CDC ' s o f up to 9 0 per cent of th e cost of technical and management assis t ance and training programs . The grants may be made for a number of programs , some o f which are as follo ws :

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1)

the identification and development of new business opportunities, joint ventures, and turnkey agreements;

2)

marketing surveys;

3)

planning and research for business development;

4)

plant design, layout, and operation;

5)

marketing and promotional assistance;

6)

business counseling, management training, and legal and other related services with specific emphasis on management training, ·using the resources of private business;

7)

encouragement of subcontracting to CDC's for establishing business and cooperative efforts to train and upgrade CDC personnel.

�A P P E N D I X

S. 3875 Sponsors: Senators Nelson (Wis.), Bayh (Ind.), Harris (Okla.), Hartke (Ind.), Church (Idaho), Mondale (Minn.), Hart (Mich.), Magnuson (Wash.), Metcalf (Mont.), Moss (Utah), Pell (R. I.), Randolph (W. Va.), Ribicoff (Conn.), Williams (N.J.), Young (Ohio), Muskie (Me.), Tydings (Md.) and McGovern (S. D.). S. 3876 Sponsors: Senators Percy (Ill.), Baker (Tenn.), Boggs (Del.), Brooke (Mass ·.), Case (N.J.), Fong (Hawaii), Griffin (Mich.), Javits (N.Y.), Jordan (Idaho), Kuchel (Calif.), Pearson (Kans.), Prouty (Vt.), Scott (Pa.) and Tower (Tax.) H. R. 18976 Sponsor: Rep. Fraser (Minn.) H. R. 184 60 Sponsors: Reps. Goodell (N.Y.), Curtis (Mo.), Widnall (N.J.) and Taft (Ohio) Although there are at least three versions o f the Communi ty Self-Determination Act, the differences are in fo rm only. Whatever structural differences are found in the bills are primarily because of political reasons. In short, familiarity with the concepts and proposals of any one bill will be equivalent to a n e xamination of all of the bills.

�The Urban Coalition

1819 H Street, N.W. Washington, D. C. 20006 Telephone : (202) 223-9500

CHAIRMAN: John W. Gardner CO-CHAIRMEN: Andrew Heiskell/ A. Philip Randolph

December 13, 1968

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The Honorable Ivan Allen, Jr. Mayor of the City of Atlanta City Hall Atlanta, Georgia 30302 Dear Ivan: We had an extremely successful meeting with the President-elect today. We were scheduled to spend an hour with him and he kept us for an hour and a half. Mr. Nixon said that at the appropriate time he would like to have a meeting in the White House which would mobilize business support for the Coalition. He also said that he would like to have us meet with the Cabinet members who make up his new Urban Affairs Council. And he asked Arthur Flemming and myself to give our advice to Pat Moynihan on the organization of the Urban Affairs Council. The President-elect listened attentively to what we had to say and repeatedly expressed his cordial interest in working with us. He referred to the Coalition as "the key organization in the pri,vate sector," and also said it was the first organizational group that he had met with since his election. Sincerely,

@John W. Gardner Cha irman

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�De cember 12, 1968

Mrs . Henrietta M . Canty 487 Lynn Valley Road , S . W . Atlanta , Georgia 30311 Dear Mrs. Canty: Thank you very much for your words of encouragement and your concern about the City of Atlanta and its urban p roblems. As you might know, I have be n involved a a member of the Steering Committee of the national Urb n Coalition since its formation.

W have also h d a Ste ring Committe at the loc 1 level for some months but have found no real d mand for expanding it on formalized program basis until recently. We re in th di cussion stages now about the possibility of formalizing a Coalition in theAtl nt r a and your comments nd support r appreciated . Sine rely you.rs,

Ivan All n,, Jr. M yor IAJr:fy

\

�FROM:

Ivan Allen-, Jr.

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For your information

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Please refer to the atta ched corre s pond e nce a nd make the necessary reply.

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FORM 25-4

A d v i s e me th e s t a tu s of the a tta ch ed .

�487 Lynn Valley Road, S. W. Atlanta, Georgia 30311 November 22, 1968

The Honorable Mayor Ivan Allen City Hall 68 Mitchell Street Atlanta, Georgia 30303 Dear Mayor Allen: We are proud of our Atlanta and the progress it has made under your fine leadership. One dared not dream of this Atlanta a decade ago, but here we stand today poised to move in one of three directions. There are those who would prefer to live in the past, those who feel things should remain as they are - and those who want to forge forward. Atlanta, like the lyrics of the Negr o Spiritual I'll Never Turn Bae~', can not afford to look back. Although we are proud of our progress to date, we are still beset by too many ills and inadequacies to stand still for a brief moment. Under these circumstances, there is but one acceptable route open-and that one is labeled Forward March. Miracles in urban crises seem to have occurred in many urban connnunities like ours by local Urban Coalitions. I've followed their programs for some time and would like to see such an organization functioning here in Atlanta. The National Alliance of Businessmen in its massive attack on hard-core unemployment this past summer, is an e xcellent ex ample of the t ype of returns we could expect from committed concerned businessmen. Unfortunatel y the NAB is limited to job placement for the hard - core unemployed. An Urban Coalition would enable groups of civic and business leaders to operate in the full spectrum of urban problems of education, transport ation ~ housing, race relations, etc. This, to me , could be a most fruitful venture.

�I would like to see Atlanta organize an Urban Coalition. this is desirable and/or feasible? With Warmest Regards,

.J/~7ft

Mrs. Henrietta

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Do you think

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,!E15:24, 29 December 2017 (EST)AS•x15:24, 29 December 2017 (EST)

THE HON IVAN ALLEN JR MAYOR OF CITY OJ" ATLA

CITY HALL ATLA AT ITS NOVEMBEC13 NE£TING, THE lilE"BEAS

or

TME STEERING c c-..:. iTTE[

IGR£EO ntAT THEY St-lOULD S£E1C AN EARLY OPPORTUIIITV TO TAUi' ·,' 1 TH

TI£ PAESIOENT-£l£CT • INITIAL CONTACT HAS N~ !£EN NOE At£· Pit N!X~ AIDES HAYE ST1U)NGLY URGED THAT VE LI~IT OUR OELf :'. - TION

TO 10 PEOPLE. AS A fllATTEA OF' COURTESY, VE HAY£ AGREED TO Cv

SO. ACCOAOIN'3LY, UNLESS ANYONE" 01\JECT, t SHALL "TRY TO PUT TC,GETHER A 1o-f'LtJ'W OEL£GATION THAT FAIRLT REPRESENTS ALL ELtt£.NTS VHi-i lN TH£ STEER INC COlll'JITTEE. I HOPE THIS !'IEETS VITH YOUR APPROVAL• JOHN V GARONER CHAIR~N Tt£ URBAN COALITION.

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�T E L E G R A M

AT I'I'S NOVEMBER .13 MEETING , rrf'.m MEMBERS OF THE STEERING COMMI'fTEE AGREED THAT THEY SHOULD SEEK AN EARLY OPPOR'l UNITY TO TALK WITH THE PRESIDENT1

ELECT.

INI'I'IAL CONTACT HAS NOW BEEN MADE AND

MR. NIXON ' S AIDES HAVE STRONGLY URGED THAT WE LIMIT OUR DELEGATION TO 10 PEOPLE .

AS A MATTER OF

COURTE$Y , WE HAVE AGREED TO DO SO .

ACCORDINGLY ,

UNLESS ANYONE OBJECTS , I SHALL TRY TO PUT TOGETHER A 10-.MAN DELEGATION THAT FAI RLY REPRES ENTS ALL ELEMENTS WITHIN THE STEERING COMMITTEE . . I HOPE THIS MEETS WITt YOUR APPROVAL.

JOHN W. GABJ)NER CHAIRl.'-'lAN THE URBAN COALITION

Mr. Dan Sweat 0:ffic e of the Ma.yor City. Hall Atlanta., ~eorg i a. I

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�The Urban Coalition

1815 H Street, N.W. Washington ,.. D.C. 20006 Telephone : 347-9630

CHAIRMAN : John W. Gardner CO-CHAI AMEN: Andrew Heiskell /A.Philip Randolph

INFORMATION SERVICE FOR COALITIONS

SUBJECT:

Public Relations Society of America

The Public Relations Society of America, a 21-year-old organization of public relations professionals with 6,000 members of 63 chapters, has offered its assistance as a communications resource to the Urban Coalition and has urged its members to assist coalitions throughout the country. The program is being coordinated by the recentlyformed Public Service Council of PRSA, which is encouraging and enlisting aid for coalitions as its first major national project. PRSA members already are playing key roles in some coalitions. Their experience and expertise could be a valuable continuing asset to many others in the crucial job of gaining broad community acceptance and understanding of the Coalition and its principles. If you have not already made contact with your local PRSA chapter, and wish to do so, you may obtain the name of the chapter President and further information from the Associate Director for your area.

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1815 H Street, N.W. Washin gton, D.C. 20005 Telephone: 347-9530

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CHAIRMAN: John W. Gardner CO-CHAIRMEN: Andrew Heiskell/ A . Philip Randolph

November 7, 1968

The attached material was sent out this afternoon to the members of the Steering Committee for the Urban Coalition and Urban Coalition Action Council: Included is the following: 1. 2. 3.

Agenda Legislative Summary Report of the Local Coalition Task Force.

As indicated in Mr. Gardner's telegram to the Steering Committee members, the Steering Committee meeting on Novembe r 13th will be held at the Madison Hotel, 15th and M Streets, N.W., Wa s hington, D. C. A reception will start at 6:00, dinner is planne d for 6:30, and the me e ting is sche duled for 7:30. Again, please call me at {202) 223-9500 if you have any questions about this mate rial or the me eting. Thank you.

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Timothy E . Wir th Assi s t a nt to the Cha i rman

Attachments TEW:rw

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Steering Committee Agenda November 13, 1968

Opening Statement by Chairman Gardner URBAN COALITION ACTION COUNCIL 1.

A Panoramic View of Prospective Legislation on Urban Affairs in the 91st Congress Appendix A enumerates specific bills and issues on each of nine fields likely to claim major attention in the next Congress. Discussion will focus on setting Action Council priorities. URBAN COAL IT ION

2.

Meeting with the President-elect On October 7, 1968 the Exe cutive Committee agreed that a delegation from the Urban Coalition should meet with the President-elect. We seek the Steering Committee's reaction to this proposal and as to the issues to be discussed.

3.

Progress in Building Local Coalitions Appe ndix B, the Report of the Local Coaliti on Task Force, presents a recommendation that the Steering Committee resolve to devote further effort as a body and as individuals, to aiding the staff in stimulating intere st in establishing local coa litions in twelve "target citie s."

4.

Cons ideration of Nomin ees for Me mbe rship on the Steer ing Committee The Nominating Committee h as met thre e times and will present the n a me s of individua ls recomme nded f or membership on the Steer ing Committee

5.

6.

Administrative Matters to be considered A.

Stat u s o f Budget and Fund Rais ing

B.

Selection o f Audit o rs

Other Business

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�APPENDIX B

.November 7, 1968 MEMORANDUM TO

Steering Committee

FROM

Local Coalition Task Force

SUBJECT:

Report on the Organization and Establishment of Local Urban Coalitions

In the national statement of goals, principles and commitments adopted by the Emergency Convocation, the Steering Committee called for the establishment of local urban coalitions throughout the country.

The Task Force on Local Coalitions has been

assigned the responsibility of overseeing developments and progress of these local coalitions. At its meeting on October 17, the Task Force heard reports from the Local Coalition Division staff on its activities. While most of the staff has been on board little more than three months, visits have been made to all of the cities where coalitions were reported to have been in some state of organization or existence.

In addition, the staff has been to 72 cities

where .interest has been expressed by one element or another in establishing a coalition.

The staff reported the status of coali-

tions as follows: a.

Applying the tough new standards established by the Task Force, one-third of the original coalitions (11 of 34) failed to meet the minimum criteria .

. b.

The remaining 23 coalitions are proceeding with staff

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�Report on the Organization and Establishment of Local Urban Coalitions

2

assistance to organize task forc~s, develop programs and engage in fund-raising. c.

Sixteen strong new coalitions, meeting Task Force standards, have been established giving us a total

of 39. d.

Thirty-two additional priority cities have been identified and are the focus of staff organizing efforts.

The staff is moving forward steadily establishing new coalitions and strengthening those we already have.

However , the staff is

encountering sign~ficant impediments to their organization efforts. 1.

There has been a clear and noticeable shift in national

pubiic opinion.

The sense of urgency concerning the urban crisis

which existed in 1967 and early 1968 has diminished.

There is

greater reluctance to engage public and private resources at the local level in a coalition movement, particularly at this time . A quie t summe r has contributed to thi s shift of ipinion, but so too has the political c a mpaign.

2.

There is occasi onal lack of support from the top leadership

,n ecessary to form a coalition.

Wh ile busi nes s , labo r and ma yor s

in many communities are providing leadership and support, the staff has b een encountering reluctance by key individuals o f one

or more o f these e l e me nts to the establishment o f coalitions in some cities.

�Report on the Organization and Establishment of Local Urban Coalitions

3

The establishment of quality coalitions takes on special importance since the national credibility of the Urban Coalition in part will be determined by thi role, image and status of the local urban coalitions.

To be effective, local coalitions must have as their

active members the most influential and highly regarded leaders of each of the various elements . ..

Despite the best efforts of the staff, itjs not always poss1ble to engage the attention and support of these key individuals without the direct, personal involvement of Steering Committee members.

Where· national Steering Commit tee members have become

involved whether by a telephone call, letter, visit, or the convening of a meeting, the organizing effort has moved far more rapidly and has attracted key leaders. RECOMJvlENDATION: For these reasons we wish to recommend with the utmost urgency that the Steering Committee adopt a resolution calling on each member to accept increased responsibility for the organization ·,.

of local coalitions and when called upon to do so to be of _ assistance in the following ways:

a.

Advise the staff of key leaders in priority cities

who are known to Steering Committee members and who could be instrumental in the establishment of a coalition. b.

At the request of the staff, write or telephone individuals urging their support of a ~oalition.

�Report on the Organization and Establishment of Local Urban Coalitions

c.

4

Accept speaking engagements in local communities on behalf of the organizing effort.

d.

Advise the staff on general strategies to be followed

in particularly difficult situations. e.

In public appearances and speaking engagements, identify with the Urban Coalition and urge support for the local coalition movement.

In order to help meet immediate organizing needs of the coalition, Steering Committee members are requested to list on the attached list the name s of one or two key individuals in the cities who are known to Steering Committee· members and who could be instrumental in the establishment of a coalition.

The staff will call on

the se individuals to enlist their support and cooperation. Steering Committee members may leave the attached form following the meeting.

Attachment

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STEERING COMMITTEE MEMBERS ARE REQUESTED TO LIST LEADERS IN THE FOLLOWING CITIES: Buffalo, New York

1.


2. Cincinnati, Ohio

1.


2. Corpus Christi, Texas

Forth Worth, Texas

Kansas City, Missouri/Kansas

1.


2.


1.


'--------

2.


1. 2.

Little Rock, Arkansas


1. 2.

Madison, Wisconsin

Pittsburgh, Pennsylvania

St. Louis, Missouri

1. 2.


1.


2.


1.

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2. San Antonio, Te x as

1.


2. Se a ttle , Washington

Utic a , New Yo rk

1.


2.

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1. 2.

- - - - - - -- -- - - --

Signature

Steering Committee .Member ,I.,

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181 5 H Street, N .W. Washin gton , D.C. 20006


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Telephone: 347-9630

CH AIR MAN: John W. Gardn er CO-CHAIR M EN: Andrew Heiskell/ A. Philip Randolph

November 6, 1968

Te l egrams have b een sent to the me mbers of the Steering Committee of the Urb a n Coa.li tion and Action Council, outlining the timing of the meeting on November 13th at the Madison Hotel, 15th and M Streets, N.W., Washington , D. C. A reception will be held at 6:00; dinner wi ll be served at 6:30; the business meeting will start at 7:30. An agend a will follow by mail. Members of the Nominating Committee have been notifi ed of a meeting at 4:30 in the Urban Co alition conf erence room , 1819 H Street , 8th floor. Memb e rs of the Exe cutive Committee have b ee n notifi e d that the Exe cutive Committee meeting h as been cance lled . Pleas e call me at (202) 223-9500 if you have any qu estions. Sincere ly,

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Timothy E. Wirth Assistant to the Chairma n TEW:rw

�THE URBAN COALITION ACTION COUNCIL

-.

JOHN

w: GARDNER

CHAIRMAN

October 4, 1968

1819 H STREET, N . W , WASHINGTON, D . C . 20006

WEEKLY LEGISLATIVE REPORT

Education, - Labor ' and Antipoverty Funds. Congress has cleared the final appropriations f6r the HEW and Labor Departments and the Office of Economic Opportunity, the antipoverty agency. The antipoverty appropriation was the largest Congress has ever approved, but funds for schools attended by educationally deprived children were below last year's appropriation. The House narrowly defeated a Southern-backed provision that would have encoura g e d resistance to desegregation of schools. The Urb a n Coa lition Action Council joined other organizations and HEW in working for defe a t of the segregation provision. · Program

Budget

House

Senate

Final

Below Budge t

(in million s o f dollars) Title I Education

$1,200.

$1,073.

$1,200.

$1,123.

$ -77.

Teache r Corp s

31. 2

Dropout Preve ntion

30.

0

20.

5.

-25 ..

Biling u a l Education

30.

0

10 .

7.5

- 22.5

OEO Antipoverty Manpower Training , Labor De p artment

15.

31.2

20.9

-10.3

2,180.

1,87 3.

2,08 8.

1,9 48 .

- 23 2 .

413.

400.

400.

400.

- 13.

Th~ Title I f unds for sch ools teaching edu cationa l ly deprived childre n -- an important program for schools in big cities -- were $68 mi llion l ess th a n l as t year's appropriation and a llowed the schoo l s on l y 32 % of the amounts t hey received for the past school year. Co:1gress also gave advance au t hority for appropriations in fisca l 1970 but limited the f unds to 90 % of the amo unt received this yeai. This was inte nde d to h e l p TELEPHON E: 202 293·153 0

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schools plan their programs before the opening of schools next fall. The Teacher Corps appropriation was the largest Congress has allowed so far, and the funds for teaching bilingual children and for preventing school dropouts were the first made for these purposes. The antipoverty a ~p ropriation, which was not earmarked for any specific OEO programs, was $170 million more than Congress allowed last year. Funds for OEO have risen each year since the first appropriation in fiscal 1965. The Labor Department's manpower app ropriatipn was only $1.5 million above last year's fiscal 1968 figure but some manpower training programs, such as JOBS and Concentrated Employment, are financed from OEO appropriations. Funds Exempted from Budget Cut. HEW's education funds will be exempted from the o ver-all $6 billion spending reduction requi r e d under the tax surcharge-budget reduction law if Congress has its way. A section o f the vocational education bill (HR - 18366) that Congress sent to the President October 3 exempts education appropriations from the $6 billion reduction in s pending and th e $10 billion r eduction in obligations (.committed money ) vote d for all Government agencies in June. However , the Preside n t still retains authority to hold down spe nding on any education program no matter what amount Congress may have appropriated. Segregation Amendment. The key part of the Southern provision opposing d e s e grega tion of school s prohibited HEW from "forcing " childre n to attend any particular school ag a inst the choi c e of the i r pa rent s . The provis ion was sponsored by Mississippi Rep. J amie L. Whitten (D), a hi gh ranking member o f ' the Appropriations Cammi ttee. The Senate amended this provision by adding language th at prohibited forc e d atte ndance at a particular school "in o rde r to overcome racial imbal a nc e ." Thi s phrase v!as a l ready a p art o f c i v il rig h ts l a w . It allowed the Government and the courts to put an end to freedom of choice " school plans that we re p e rpe tuating racinl discrimina tion. Whe n me mbers of the House a nd Se n ate Appro pr i a tion s Committees me t in conf e rence on th e Labor-HEW appro pr i ation bill, Sou t h erne rs h ad a ma jo r ity o f the v otes a nd they stru ck from the bill the Se nate lang u age limiting the prohibition to pl a n s to overcome racia l i mba l a n ce . In effect, ·w hit te n' s p u rpose was achi eve d .

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Action Counc il Chairman John W. Gardner wrote Rous e Speaker John W. McCormack (D Mass .) and the Republican leade r, Rep. Gerald Ford (Mich.), October 2, asking them to help defeat the Whitten amendment on the House floor. He said the amendment "ra.ises the real threat of resegregation in many Southern school districts" and "implicitly sanctions racially dual school s ystems ." On a clos e , 167-175 vote Octobe r 3, the House rejected the Appropriations Committees ' recommendation and adop t ed the Senate language nullifying Whi tten's amendment. This wi ll enable HEW to continue to withhold funds from school d istricts that are not making re~l progress toward desegregation. New Housing Funds . The President sent to Congress Oc tober 3 a request f or supplemental · appropriations that included funds to begin some of the programs in the n ew Eousing Act and to administer the fair housing law . These were his housing proposals: Home Ownership Contract ~uthority

$75 million

Rental Housing As sistance

75 million

Grants for Tenant Services

15 million

Planned Ar e a wide De v e lopment

5 million

Low and Mode rate -Income Spons or Fund

5 million

Fair Housing Program

8 mi llion

Flood Insurance Administration

1.5 million

The Hou se is exp e cte d to t a k e u p the supp l ement a l appro priation bill Oc t o be r 7 or Oc t obe r 8 and the Se n a t e will a ct shortly thereaft e r . HUD Pe r s onne l. Another attemp t i s e xpe cte d t o b e made next week in t h e Sen a t e to exempt the De par t me nt o f Housing a n d Urban De ve lopmen t f rom th e cutback i n p erso n n e l r e qu ire d by the tax surcharge- budge t reduction law. For the e ff ect the law now has on a dministration of the new housing p rograms, see the Se ptember 27 Le gisl a t i ve Re po rt of the Ac t ion Council.

�THE URBAN COALITION ACTION COUNCIL

JOHN W. GARDNER CHAIRMAN

1819 H STREET. N . W. WASHINGTON. D. C . 20006

September 27, 1968

WEEKLY LEGISLATIVE REPORT

Housing. Final action on appropriations for the HUD Department was taken September 25 when the Senate agreed to the disappointingly low figures for key housing programs without dissent. (For figures, see September 20 Legislative Report.) HUD Under Secretary Robert C. Wood September 25 said decisions would be made within a week on whether to make across-the-board reductions or selective cuts in HUD programs. Congress cut the Department's requested funds by one-third -- from $3.1 billion to $2.1 billion. Wood, in an interview with editors of Housing and Urban Affairs Daily, singled out four programs where the Congressional cuts especially hurt. These were: Urban renewal grants. As these are for the next fiscal year, fiscal 1970, more funds may be sought next year. Model Cities, for which $625 million instead of $1 billion was approved. Urban inf ormation and technical assistance -- a small program to help states and cities carry out urban projects. Congress refused to grant any of the $5 million requested for the program. Fair housing enforcement, f or which all funds were denied on grounds HUD already had suffici e nt p e rsonne l working in the civil rights fi e ld. The $9 million the Senate had provided would have enabled HUD to hire about 690 investigators across the country to enforce the new fair housing req uirements written into law in Apri l . Several organizat ions h a ve p rotested the denial o f funds to e nfo r ce the · fa i r housing act and ther e is a poss i bility that HUD will ask Congress to reconsider its acti on. This . h inges, h owever, on a d ecision the Ad mi n i s t rat ion mu s t ma ke soon on whether to send requests f o r .supp l emental appropri-

T !;,LE PHON E : 2 02 293-153 0

�- 2 ations to Congress this fall. Although that is the usual procedure late in the session, the economy mood in Congress may be so strong just before elections that the Administration will not ask for additional money. The major new programs in the 1968 housing law will be delayed at least six months if no supplemental appropriations are requested from or voted by Congress. HUD Personnel. Another factor that might delay the new housing programs is the Congressional directive in June that HUD, and all other federal agencies, cut back on their personnel. HUD had hoped to add 1,600 employees this year. Instead, it will have to reduce its staff by 900 -- not by firing employees but by filling only 7 out of 10 vacancies that develop as employees resign or retire. Senator John Sparkman (D Ala.), chairman of the Senate's Housing Subcommittee, tried unsuccessfully September 23 to win Senate approval of an e x emption for HUD from the personnel cutback. Unfortunately, exemptions f or other age nc i es were tacked onto Sparkman's amendment and the major sponsor of the personnel cutback,. Senator John Williams (R Del.), fought the amendment bitterly. It was defeated, 23-37. It is anticipated th a t anothe r attempt will be made to e x empt HUD f rom the seve r e personne l limitations before Congress adjourns. Education, Labor and Antipoverty Funds. Final appropriations f or e ducation, manpower training a nd antipoverty programs will be announc e d Sept e mbe r 30. Me mbers o f t he House and Senate Appropriation s Committees comp romi sed t heir d iffere n ces i n a Sept ember 26 mee ting b ut wi t hheld a nnounc e ment o f the sums agreed upon. The differences in key appropriations were listed in Appe ndix B of the Septembe r 13 Leg i slative Repor t . Head St art . Members o f the House and Sen a t e e duc ation committees, meeting in conference on the vocational e ducation bi ll , h a ve a g ree d t o d rop an amendmen t b y Sen ato r Pete r Domini ck (R Colo . ) that would hav e t r a n s f e rred the Head Start pro gram t o HEW' s Office o f Edu cat i o n. The pro gram wi ll c o ntinue to be r u n by the independent antipovert y agency, the Office of Economic Opportunity. Under the final version of the vocational education bill, the President is asked to have a study made of how Head Start can best be administered and to report to Congress next spring.

�THE URBAN COALITION ACTION COUNCIL

JOHN W. GA R DN E R CHAIRMAN 1019 H srn E ET. N .

September 2 7, 19 6 8

w.

WASHING T ON, D . C . 20006

TO:

Chairmen and Executive Directors of Local Urban Coalitions

SUBJECT:

HUD App ropri a tions and HUD Personne l Limitations

As you will not~ in Congressional action has HUD a p prop riations. HUD be t wee n the $1.2 billion approve d by the Senate .

t his week's Leg i slative Rep ort, been comp l e ted on Fiscal Ye ar 1969 was given $2.1 billion, a comp romi se approve d b y the Hous e a nd the $3.1

No funds were given to implement the Fair Housing program which became law earli e r this y e ar, although HUD had planne d a staff of 850 and h a d requeste d $11 million for this program . Nor do the se appro p ri a tions include f und s for the n ew programs authoriz e d in the Housing and Urban De v e lopme nt Act of 196 8 . It h a s b een anticipa t e d th a t a supp l eme nt a l budget reque st would b e s e nt to Congress to initi a t e s ome of the n ew prog rams , includ ing Home Own ershi p a n d Ren ta l Ass i stan ce . Th e HUD Act a utho r izes $75 million f o r each of t h ese p rog r ams in the fi rst year . There is now some q u est ion whe t her t h e supplemental r e que st will be made. In addition to all of th i s, th e HUD pe rsonne l limita tions present one of t he greatest prob l ems facing t h e housing a nd u r b an f i e l d. An increase o f 1, 6 00 person s is proje cted to administer t h e new HUD programs dur ing the n ext year , yet t he Department will h av e to c u t its personne l by 9 00 u nde r the limita tions i mpo sed by the Tax Increase - Budge t Cut bill . All o f th ese d e v e lopme n ts point to b l eak times for our c i t ies as they t ry to meet their n eeds in the months ahead . We h ad not anticipated so many prob l ems with appropriations in the hou s ing and urban field , b u t are now fac e d with them because of t h e strong economy dr i ve in Congress and a general lack of u nders t anding ab out t he n eeds o f o u r u rban centers. You can b e very h e l pf ul by : (1 ) Communic a ting with th e President, u rg ing the Admini s tra tion to send Congress a supple me ntal budget request for implementation of t he new Fair Hou sing law and the new HUD Act programs (particularly Horne Ownership ahd Rental Assistance ) ; and by communicat ing with your Se nators and Repres e ntatives , aski ng the ir s u pport. T ELEPHON E: 202 2 93· ! 5 3 0

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(2) Explaining to your Senators and Congressmen the special urgency in the urban field for a HUD exemption from the ceiling on personnel . It will be impossible for the Department to begin its new programs and effectively maintain its present ones if it suffers the cutbacks currently anticipated. We have called for your help several times in the past few months on legislative issues relevant to the urban community. Your response has been very encouraging. Your continued assistance is most valuable, and we hope that you will at no time underestimate your importance in helping to obtain needed urban legislation. Sincerely yours ,

~R-~

Executive Director

LRB:m Enclosure (Weekly Legislative Report )

�The Urban Coalition

1815 H Street, N.W. Washington, D.C. 20006 Telephone : 347-9630

I

CHAIRMAN: John W. Gardner CO-CHAIRMEN: Andrew Heiskell/ A. Philip Randolph

INFORMATION SERVICE FOR COALITIONS

SUBJECT:

'Give A Damn" Buttons

For those Coalitions considering the "Give A Damn" campaign, we have received the following bids for the production of buttons: . Vendor:

Garrick Enterprises, Inc . 9 East Sixty-Second Street New York, N.Y. 10021 Attention:

Donald Abrahams

Cost/1000 - $27.50 in quantities of 1000 - 10,000 Vendor:

Pelzer & Green, Inc. 343 Le x ington Avenue New York, N.Y. 10017 Attention: Al Pelzer Cost/1000 - $45.00 2500 - $43.00 per thousand 5000 - $32.50 per thousand

We have not seen the product of Garrick Enterprises .

�THE URBAN COALITION ACTION COUNCIL

JOHN W. GARDN ER CHAIR MAN

October 4, 1968

18 19 H STREET, N . W . WASHINGTON. D. C . 20006

WEEKLY LEGISLATIVE REPORT

Education, - Labor ' and Ant i poverty Funds. Congress has cleared the fin a l approp riations for the HEW and Labor Departments and the Office of Economic Opportunity , the antipoverty agency . The antipoverty appropriation was the largest Congress has ever app roved, but funds for schools attended by educationally d eprived children were below l ast year ' s appropriation . The House narrowly def e ated a Southern- b a c ked provision th a t would have encourage d res ista nce to d esegregation of schools. Th e Urb a n Coa li tion Action Council joined othe r organizations and HEW in working f or defeat o f the segregation provision. Program

Budget

Hou s e

Senate

Fina l

Be low Budget

(in million s o f dollars ) Title I Education

$1,200.

$1,073.

ts.

$1,200.

$1,123.

$ - 77.

Teach e r Corps

31.2

Dropou t Pre v e ntion

30.

0

20.

5.

-25.

Bilingua l Education

30.

0

10.

7.5

- 22.5

OEO Antipoverty Manpower Tra ining , Labor Department

31.2

20.9

- 10.3

2 ,180 .

1,87 3 .

2,08 8.

1,9 48 .

- 232.

413.

400.

4 00.

400.

-13.

The Title I funds for schools t eaching educationa lly deprived chi l dr e n - ~ an important program for schools in big cities -- were $68 million l e ss than l ast year ' s appropriation and al l owed the schools on l y 92 % of the amount s they received for che past school year. Congress also gave advance authority for appropriations in fiscal 1970 but limited the f u nds to 90 % of the amount received this year. · This was intended to h e l p T E L EP H ONE: 2 0 2 2. 9 3-1530

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ichools pl a n their progr a ms b e for e the op e ning of schools nex t fall. The Te a Gh e r Corp s a p p ropr iation was the larg est Congress has allowe d so f a r, and the fund s for teaching biling ual children and for preventing sch ool dropouts were the first made for these purpos e s. The antipoverty appropri a tion, which was not earmarked for any spe cific OEO progr ams , was $170 million more th a n Congre ss allowed last y e a r . Funds for OEO have risen e a ch year since the first appro p riation in fisc a l 1965. The Labor De p a rtme nt's manp o we r a pp ro p ri a tion was only $1.5 million a b ove last y ear's fiscal 196 8 figure but some manp ower training pro g r am s, ·s uch as JO BS and Concentrated Employme n t , are fin a nc ed fro m OEO app r opriations. Funds Ex emp ted from Budge t Cut. HEW1 s educ a tion funds will be e xemp t e d from th e ove r-all $6 billion s pe nding reduction r equire d u n d e r the t ax sur cha r g e-b u dge t r eductio n law if Con g r e s s h as its way . A s ec tion of the vo c a tion a l e ducation bill (HR .18366 ) th a t Con g r es s se nt to t he Pre sid ent Octob e r 3 exemp t s educ a t i o n app ro pr i a tions fro m the $6 billion red u c t ion in s pending and th e $10 billion r edu ct i on i n o b lig a tions (comrnitted mo n ey ) v oted fo r a ll Gover nme nt a ge nci e s in June. Howe ve r, the Pr e side nt st ill r e t a i n s a uthority to hold d own s pen d ing o n any educ at ion pro gram no ma tter wh a t amount Co ng r ess may h ave a ppro p ri a t ed . Seg rega tio n Amendme nt. The key part of th e Southe rn p r ovi s ion o pp6s i ng d e segrega tion o f school s p rohi b ite d HEW from "fo r c i n g " c h ild re n to att e n d any par ticul ar schoo l ag a in s t the choice of the i r pa r ents. The pro v i s i o n wa s s p o nso r ed by Mississ i pp i Rep . J amie L. Whitten (D), a hi gh r a n k i ng mernber o f t he Approp ri a t ions Comm itte e. The Se n a te amend ed thi s provision b y a dd ing langu age th a t p r o hib ite d fo rced at te n dance a t a particul ar sc h ool "in o r d er to o ve rcome raci a l i mba l ance ." Thi s p h rase was a lready a pa rt of civ il r ight s l aw . It a llowe d th e Gove r nment and th e c o u r t s to put an e n d to free d om o f choi c e" school p l ans th a t were perpe tu at i ng r ac i a l di scriminati o n. When members of t he Fouse and Senate Appropriat i ons Cammi ttees me t in conference on t he Labor ·-HEW appro priat i on bil l , Southerners had a ma jo rity of the v o tes and t hey struck f rom th e bil l t he Senate l anguage l imiting the pro hib i tion to plans to overcome raci a.l imba l an ce . In ef feet 1 Wh i tt e n' s purpose was achieved.

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Action Council Chairman John W. Gardner wrot e Hous e Speaker John W. Mc Cormack (D Mass .) and the Repub lican leader, Rep. Ge rald Ford (Mich.), October 2, asking them to help defeat the Wh itten amendment on the House floor. He said the amendment 11 raises the real threat of res eg re gation in many Southern school districts 11 and nimplicitly sanctions racially dual school systems." On a close, 167-175 vote October 3, the House rejected the Appropriations Committees ' recommendation and adopted the Senate language nullifying Whitten 1 s amendment . This will enable HEW to continue to withhold funds from school districts that are not making real progress toward desegregation. New Housi ng Funds. The President sent to Congress October 3 a request for supplemental appropriations that included funds to begin some of the programs in the new Housing Act and to administer the fair housing law . These were his housing proposals: Home Ownership Contract Authority

$75 million

Rental Housing Assistance

75 million

Grants for Tenant Services

15 million

Planned Areawide Development

5 million

Low and Moderate -Income Sponsor Fund

5 million

Fair Housing Program

8 million

Flood Insurance Administration

1.5 million

The House is e xpe cted to take u p the supplemental appropriation bill October 7 or October 8 and the Senate will act shortly there a ft e r. HUD Personnel. Another attempt is exp e cted to be made nex t week in the Senate to exempt the Departme nt of Housing and Urban Developme nt from the cutback in personnel required by the tax surcharg e-budget reduction law. For the effect the l aw now has on administration of the new housing programs, see the September 27 Legislative Re port of the Acti on Council.

�THE URBAN COALITION ACTION COUNCIL

JOHN W . GARDNER CHAIRMAN

September 20, 1968

1819 H STREET, N. W. WASHINGTON , D. C . 20006

WEEKLY LEGISLATIVE REPORT Housing Funds. Disappointing news came out of the conference of House and Senate Appropriations Cowmittee 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 appropriations. Last Year's Appropriation

Fiscal 1969 A.mount Budget Approved

Below Budget

(in millions of dollars) Urban Renewal (Fiscal 1970)

-

$750.

$1,400.

45.

55.

312.

1,000.

(Program Grants)

(212)

(50 0)

(312.5)

(-187.5)

(Urban Renewal)

(100)

(5 0 0)

(312.5)

(-187.5)

10.

20.

11.

9•

0

5.

Urban Planning Model Cities

Urban Research Urban Information, Tech. Assistance Rent Supplement Contract Authority Fair Housing

2.2 10.

5. 65. 11.1

$750. 43.8 625.

$650. 11. 2

- ..

30. 0

375.

35. 11.1

The National League of Cities protested to Congress Septewber 19 that the cuts in housing funds were "incomprehensible," but the Hous e accepted the.conference recowme ndations without dissent . The Senate also is e x pected to accept the figur es next week. Despite the fact that the fair housing law was enacted only last April, the Appropriatio n s Committees said HUD and

TELEP HON E: 2 02 29 3- 15 30

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other agenci e s alr e ady h ad e n ough p e r sonn e l working on civil rights activities. The civil righ ts-f a ir housing law made HUD responsible for administe ring t h e fair housing re q uireme nts, which are to apply to all housi n g e x c ep t singl e -family home s by the end of 1968. One y e ar l a t e r, most single-family housing also will b e cover e d. Report on the Cities a nd Fe deral - State Fina ncing. A major, t wo-volume r e port o n the probl ems of the cities and federal aid to states and local governments was released September 19. It was issue d by the Advisor y Commission on Intergovernme ntal Relations, a bipartisan, high-l e vel group whose me mber s hip include s gove rno r s, ma yors, federal cabi ne t members and Congre ssme n, state l e gislators, el e cted county officials an d private citiz e ns. In-depth case studies we re made of 12 central cities and their surrounding are a s. Among the findings · were: Tax burde ns are growing faster in central cities than in their suburbs. Local tax es in central cities, measured against personal income , ave rag e mor e than one -third higher than suburban tax es. Suburb s spe nd $135 mor e p e r school child than do central citi e s, but the cities spend $100 more per capita th a n do sub urbs for such services as police and fire prote ction and sanitation. The report found an untapp ed poten tial of $20 billion annually in state and local tax es and the Commission emphasized that all state s n eed both a strong s a les t ax and a strong income tax . Proposals for r e form of st a te and local tax systems, particularly the property tax , were spe lled out. Sharing by th e Fed eral Gove rnment of some of its tax revenues with the states, on a per capita basis adjusted for variations in th e state s' own tax efforts, was recommende d, but onl y as p a rt of a r e vis e d s y stem of federal grants. The Commission propos e d that grants for broad functions replace th e curr e nt s y stem of parc e ling out money for spe cial, limited prog rams. It s a i d t he p r esent f ede r a l aid s yste m wa s suf fer i ng f r om a pro gres sive "h arden ing of t h e catego r i ~s. " But a fe w a re as o f nationwide c o nce r n, suc h as p ollu t io n, s h ould c ont i n u e to rece i ve earmarked f u n d s (so -ca ll ed c ateg o ri c a l grant s ) . Single copies of the repo rt can be o rdered from the Advisory Commission on Intergovernmental Rela t i o ns, Wa s h i ngton, D. C. 205 75 .

�- 3 Public Service Employme nt. Sen a te action has again been postponed on the Public Serv ice Employment ame ndment that Senators Clark, Javits and Prouty hoped to pres e nt. The bill to which the ame ndment was to b e offered -- an e x tension of a minor part of the Manp owe r Development and Tr aining Act (S. 2938) -- may not be called up for Senate action at all this year. The major sections of MDTA do not e x pire until next year. Education, Labor and Antipoverty Funds. Final figures for education, ma npower training and antipoverty program appropriations are not yet settled. Memb ers of the House and Senate Appropriations Committee s have had one conference on the Labor-HEW bill and will meet a g ain September 26. For differences b e t we en th e original House and Senate appropriations, see Appendix B of the September 13 Action Council Legislative Report.

�THE URBAN COALITION ACTION COUNCIL ,· JOH N W. GA R DNER CHAIR MA N

September 20, 1968

1819 H STREET, N. W . WASHI N GTON, D . C . 2000 6

WEEKLY LEGISLATIVE REPORT Housing Funds. Disappointing news came out of the conference of House and Se nate Ap propriations Committee members that reache d a decision on HUD approp~iations Sep tember 18. The Senate h a d approved much more generous funds than the Hous e , but in conference the Senate gave in to a large e x t e nt· and the final figur e s were barely above the ori g inal House appropriations. Last Year's Appropriation

Fiscal 1969 Amount Approved Budget

Below Budget

.(in millions of dollars) Urban Renewal (Fiscal 1970)

$1,400.

45.

55.

312.

1,000.

(Program Grants)

(212)

(50 0)

(312.5)

(-187.5)

{Urban Renewal)

(10 0)

(5 00)

(312.5)

(-187.5)

10.

20.

11.

9.

0

5.

65.

30 .

35.

11.1

·o

Urban Planning Model Cities

Urban Res e arch Urban Information, Tech. Assistance Rent Supplement Contract Authority Fair Hous i ng

2.2

10.

$750.

-

$750.

43.8 625.

5.

$650. 11.2 375.

11.1

The National League of Cities protested to Congress Sep tembe r 19 t hat t h e cuts i n housing funds were "incomp r e h e nsibl e, " but t he Hous e accepte d the conf e rence recommendation s without dissen t . Th e Senate also is e xpected to accep t th e figu re s n ex t week. Despite th e fact th a t t he fa ir housing l aw wa s enacte d only last April, the Appro pri atio ns Committees said HUD and ,"'· , .. ~

TEL E PH O N E: 202 29 3-1 530 It -

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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 e x cept 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 issue d by the Advisory Commission on Intergovernme ntal Relations, a biparti~an, 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 taxe s 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 taxe s and the Commission emphasized that all states need both a strong sales tax and a strong income 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 s y stem 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 s ystem was suffering from a progressive "hardening of the categories. But a few areas of nationwide concern, such as pollution, should continue 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. C. 20575.

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Public Service Employment. Senate action has again been postponed on the Public Service Employmen t 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 Report.

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