Urban Policy in a Changing Federal System Proceedings of a Symposium (1985) / Chapter Skim
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Pages 1-16
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In its earlier report, Rethinking Urban Policy, the committee analyzed the major structural changes that have been transforming the economy, in essence a shift from an economy based on manufacturing to one based on information and services. This shift emphasizes human capital over physical capital as well as the need for a well-educated, highly skilled work force.
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What major changes in the fiscal and functional responsibilities of federal, state, and local educational agencies are required? · Are the states institutionally capable of bringing about reforms in the educational system to teach what will be needed in the future and to meet the basic skill requirements of urban work forces?
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Mythic federalism -- a romantic notion whereby the states can limit the power of the federal government; (2)
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Finally, the current concept of the New Federalism as conceived by the Reagan administration was articulated by representatives of the administration: · To promote economic recovery; · To strengthen the national government to perform its essential functions, e.g., national security and basic social insurance programs; · To devolve domestic programs to state and local governments to increase responsiveness to diverse conditions; · To strengthen state and local governments; and · To stimulate private and public sector cooperation. This conception also includes: (1)
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Fiscal pragmatism and recognition that the size of the federal deficit would preclude large domestic policy initiatives, however, led many to concede that a reduced federal role was inevitable, at least for the short term. The overriding concern of many is the need to articulate more clearly the division of responsibilities between the national government and state and local governments, particularly in domestic matters.
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He raises the question of whether government and its professional bureaucracies should be relied on for many public services. Kolderie maintains that, as a nation, we are in a transition from one set of theories to another, but that mother types of action are simply emerging without a theory to explain them: local action rather than national action, private rather than governmental, nonprofessional rather than professional, procompetitive rather than regulatory..
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The committee's earlier analysis of the urban policy problems presented by an advanced economy was supplemented by the papers in this volume on urban education and job training. The central issue is the capacity of the federal system to produce educated, skilled, and technologically competent workers at the entry level and to retrain the existing labor force for the demands of a new economy.
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The year of the California tax revolt, 1978, marked the beginning of nationwide fiscal restraint. In that year, taxpayers' revolts reduced federal aid, and recession led to the start of a great slowdown in state and local outlays.
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For example, it was pointed out that community action agencies, which had not previously established ties with the states, are now scrambling to their state capitols to secure funding from state-controlled Community Services Block Grants. With respect to longer-term prospects, Doolittle reported two quite divergent readings.
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points out the varied policies of the states and the link among political culture, fiscal health, and tradition in the states' attitudes toward federal aid retrenchment. Doolittle reported that, not surprisingly, ~liberal, wealthier states are doing more to counter aid changes than are poorer, conservative states..
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Mer get concluded that The conducive conditions that allowed us to pursue and champion the cause of equity seem to have disappeared.. In response to concerns about fiscal capacity and equi ty, Robert Carlson, from his perspective as a former Reagan White House urban policy aide, stated that cuts in the federal income tax enabled states and local governments to raise their own taxes and to finance their needs from their own sources.
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However, according to John Shannon, star and expenditure limitations, the memory of the tax revolt, and public opposition to government expansion,. will continue to restrain state spending.
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Mayor Latimer of St. Paul provided several examples of innovative programs involving the private sector and foundations in the areas of job training and employment, energy conservation through district heating, and new and rehabilitated housing.
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Budget cuts have reduced public services to the needy; states have cut back their funding to the medically indigent and shifted the burden of service provision to counties and cities; nonprofit organizations providing char itable and social services have terminated programs, serving only those who can pay, or, in some cases, have disappeared from their community. State and local governments are receiving less f
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The Reagan administration has maintained many significant urban programs in urban and community development. Congress has restored funds to social programs.
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Yet whatever new idea or theory emerges, it is likely to continue to include the inevitable conflict between the allegiance to a national government and the respect for state and local loyalties.
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