Presidential Statement No. 6 on Economic Issues: Strengthening State-Local Government.

1. IN LINE with the Democratic platform, this administration is moving ahead on the "development of fiscal policies which would provide revenue sources to hard-pressed State and local governments to assist them with their responsibilities."

2. At the State and local level we see responsibilities rising faster than revenues, while at the Federal level an average annual revenue growth of some $6 billion provides a comfortable margin for Federal tax reduction, Federal programs, and more generous help to State and local units.

3. The National Government, as a constructive partner in a creative federalism, should help restore fiscal balance and strengthen State and local governments by making available for their use some part of our great and growing Federal tax revenues-over and above existing aids.

4. It should also strengthen existing programs of Federal-State-local cooperation in such vital areas as public assistance, public health, urban renewal, highways, recreation, and education.

5. Intensive study is now being given to methods of channeling Federal revenue to States and localities which will reinforce their independence while enlarging their capacity to serve their citizens.