Statement Announcing Continuation of the Planned Variations Program

I AM pleased to announce that the Planned Variations demonstration of revenue sharing principles, inaugurated one year ago in 20 cities, has received a very favorable response from participating cities and that it will be continued for a second year.

This test project indicates what local communities can do to plan and implement local improvements when freed from heavy-handed Federal regulation and second-guessing.

In the past--and at present under most existing Federal grant programs--local governments have been given sums of Federal money, told what specifically to do with it, checked by Uncle Sam at every step along the way, and sometimes scolded if things on the local scene do not turn out as bureaucrats in Washington have imagined they would.

Instead of focusing these decisions in Washington, one fundamental thrust of my Administration has been to develop power-to-the-local-people programs under which local officials--who know the local scene the best--are given funds and the freedom to allocate those funds as local conditions suggest, with a minimum of Federal red tape and regulations.

The Planned Variations demonstration has given local general purpose governments some of the tools they need in order to serve their citizens better, and its extension for another year will give the participating 20 cities an opportunity to follow through on the important local-reliance initiatives begun in the past 12 months. Some of these tools include:

--freedom to designate their own priorities,

--greater influence over Federal funds flowing into their communities,

--substantial simplification of Federal rules and regulations.

Bringing about changes in patterns of behavior that have developed over many years is a difficult undertaking. The past year's experience in Planned Variations has highlighted many of the difficulties in transferring decision making authority from Federal to local hands. New working relationships must be established among local officials and between local and Federal officials.

But these cities have begun to solve these problems and in doing so they have verified my conviction that local government, given the resources and the authority, is best qualified to identify and satisfy the needs of urban America, because it is the level of government that is in most direct touch with the people.

In a letter to me dated August 2, 1972, from all of the mayors of the 20 participating cities, they stated clearly their support for these principles. Their letter declared:

"We appreciate our good fortune in having been selected in this effort and we believe that Planned Variations has amply demonstrated that the kinds of capacity building which it embodies are critical to all cities if they are to make maximum use of the community development legislation."

Local elected officials have far too long been held accountable for actions over which they have little or no authority. This Administration is dedicated to giving local officials the authority so that they can get on with the job.

Therefore, I again call upon the Congress to redouble its efforts to enact the general revenue sharing legislation now under consideration. This Nation needs such legislation now.

The experience of these 20 cities will be of great value to all local communities which must accept new responsibilities under revenue sharing. To further strengthen the value of this demonstration during its second year, I am hereby directing each Federal department and agency to take the following actions as it works with Planned Variations cities:

1. Provide units of general purpose government in the immediate area of each Planned Variations city with the opportunity to review and comment on all applications for Federal funds which have a direct major impact on their residents.

2. Intensify efforts to eliminate administratively imposed Federal regulations which restrict local government efforts to meet local priorities.

3. Encourage negotiations between the cities, represented by their chief executives, and Federal departments, through the Federal Regional Council, to develop annual funding strategies which are responsive to locally established priorities.

The new federalism is more than a change in procedures--it is a basic change in philosophy which requires a change in attitudes on the part of the Federal Government. I am convinced such a change is essential. In that sense the Planned Variations demonstration is a testing ground--and a successful one--for some of the new initiatives of this Administration and an essential part of the underpinning for our revenue sharing programs.

As I said when I announced the program last year, it is designed to demonstrate "the validity of the principle that when local governments are given the opportunity and the resources, they can and will manage their affairs effectively and in a way which is responsive to the needs of all of their citizens."