Letter to the Speaker of the House and the President of the Senate Transmitting Proposed Legislation To Extend and Revise the General Revenue Sharing Program

ENCLOSED is a draft of a bill, "To extend and revise the State and Local Fiscal Assistance Act of 1972."

The State and Local Fiscal Assistance Act of 1972 has provided vitally needed funding to States and over 38,000 local governments. While there appears to be no need for substantial changes, some amendments to the Act are considered desirable based upon our experience in administering the general revenue sharing program for the past two- and one-half years.

The draft bill would make such amendments. In addition to extending the Act through the fiscal year beginning October 1, 1981, the amendments clarify certain provisions of the Act, require that residents within the recipient government's jurisdiction be provided an opportunity to give their views on how revenue sharing funds should be spent, and facilitate the administration of the Act from a management point of view. The inflationary impact of this draft bill has been carefully considered.

There is also enclosed a section-by-section analysis of the draft bill and a. comparative type showing the changes that would be made in the existing Act.

I urge you to bring this proposed legislation to the attention of the House of Representatives/Senate at your earliest convenience. An identical draft bill has been transmitted to the Speaker of the House of Representatives/President of the Senate.

Sincerely,

GERALD R. FORD