CONGRESSIONAL RECORD -- SENATE
July 27, 1967
Page 20452
A NEW ERA IN FEDERAL-STATE RELATIONS
Mr. MUSKIE. Mr. President, some years ago we heard comments from many of our Governors that the Federal Government was unresponsive to the needs and aspirations of the States.
A few years later we heard protests that the Federal Government was intruding its powers into local affairs so that States rights were somehow being minimized.
And most recently we heard that States were not being consulted on the new Great Society reform programs which were moving forward in cities and rural areas across the Nation.
More and more, we hear a new voice from the Governors. It is the voice of cooperation. It is the voice of concerned interest. It is a voice which recognizes the common responsibility and partnership of the States and the Federal Government in a series of human and community renewal projects.
There is reason to hope that we may be entering a new era in Federal-State relations.
In the last 4 months, representatives of the President have made visits to 40 States and met with hundreds of State officials.
Many comments have come to the President from Democratic and Republican Governors indicating the value of these meetings.
The fact is that Governors of the States now share more in executive decisions in Washington than ever before in the history of the American Federal State structure.
The Governors believe it is a good thing. I believe it is a good thing. More efficient programing has resulted from it.
Last November the President sent a memorandum to the heads of Federal agencies which pointed out that the basis of creative federalism is cooperation and called upon them to take steps to afford representatives of the chief executives of States and local governments the opportunity to advise and consult in the development and execution of programs which directly affect the conduct of State and local affairs.
A few days ago the Bureau of the Budget issued the latest of its instructions to the heads of executive departments and establishments on methods to be followed in achieving the objectives set by the President. Significantly, the good offices of the Advisory Commission on Intergovernmental Relations will be used in obtaining the advice and comment of organizations representing State and local governments on substantive and administrative regulations proposed to be issued. These new guidelines for consultation by the responsible executives of Federal Government and State and local governments are a constructive and imminently practical step forward in the practice of creative federalism.
A recent article published in the Dallas Morning News deals with some aspects of the relationship between President Johnson and the Democratic Governors of the United States, recognizing steps which the President has taken to strengthen the partnership between the Federal Government and the States.
I conclude by saying that although the article refers to Democratic Governors, it could just as well have referred to Republican Governors.
There is not, and cannot be, politics in the new Federal-State partnership. It is a new working relationship which will enhance the effectiveness of all public servants who are determined to work for the people.
President Johnson deserves our praise for what he has done to make this new era possible.
I ask unanimous consent that there be printed in the RECORD the text of Bureau of the Budget Circular A-85, dated June 28, 1967, and the text of the article from the July 3 issue of the Dallas Morning News.
There being no objection, the items were ordered to be printed in the RECORD, as follows:
[Circular No. A-85]
EXECUTIVE OFFICE of THE PRESIDENT, BUREAU OF THE BUDGET,
Washington, D.C.,
June 28, 1967.
To the heads of Executive Departments and Establishments.
Subject: Consultation with heads of State and local governments in development of Federal rules, regulations, standards, procedures, and guidelines.
1. Purpose. In accordance with the Memorandum of the President dated November 11,
1966, on "Advice and Consultation with State and Local Officials" (copy attached), the purpose of this Circular is to afford chief executives of State and local governments a reasonable opportunity to comment on significant proposed Federal rules, regulations, standards, procedures, and guidelines (hereafter called regulations) applicable to Federal assistance programs. As an alternative to direct consultations, the Circular provides for assistance by the Advisory Commission on Intergovernmental Relations (ACIR) in arranging to obtain State and local advice and comment on such matters, in cooperation with State and local general government associations.
2. Background. Federal agencies administering programs of assistance to State and local governments normally issue regulations under which the programs are administered. These regulations affect the conduct of State and local affairs, including management and organization, planning, program adjustments, and fiscal and administrative systems. Federal requirements may not be consistent among Federal agencies nor permit needed flexibility for State and local governments. To meet the President's objective of making certain that vital Federal assistance programs are made workable at the point of impact, heads of State and local governments should be afforded an opportunity to comment on Federal regulations prior to their issuance.
3. Policies. Agencies will be guided, to the fullest practical extent consistent with Federal laws, by the following policies in developing regulations for administering programs of assistance to State and local governments.
a. The central coordinating role of heads of State and local governments, including their role of initiating and developing State and local programs, will be supported and strengthened.
b. Federal regulations should not encumber the heads of State and local governments in providing effective organizational and administrative arrangements and in developing planning, budgetary, and fiscal procedures responsive to needs.
c. Duplication of reporting requirements and controls which are established by State and local governments will be avoided, and Federal agencies should rely wherever possible on internal or independent audits performed at the State or local level as provided in Budget Circular No. A-73, dated August 4, 1965.
d. Except as may be required by law or special circumstances, agency regulations dealing with like matters (e.g., allowable costs, definitions of like terms, and procedures and information needed for determining eligibility in like cases) will be consistent both internally and with practices of other agencies.
4. Coverage. This Circular applies to regulations and revisions thereof which implement a Federal assistance program that includes among its eligible recipients State or local governments or quasi-public agencies (e.g., public housing or urban renewal agencies) and directly affect.
a. Interstate relationships,
b. Intergovernmental relationships (e.g., State-local and interlocal),
c. Types of eligible recipients,
d. Designations of agencies within State or local government,
e. Requirements affecting State or local personnel,
f. Organizational, planning, or fiscal activities of State and other governments, or roles and functions of heads of State or local governments.
5. Procedures for informing State and local government associations of proposed new or revised regulations.
a. The issuing agency will provide to the ACIR a copy and a summary of the proposed regulation. As a norm, this should be done not less than 45 days before the intended date of promulgation. If special legal or other circumstances do not permit sufficient time for such notice and comment, the agency will advise the ACIR of the time available and provide at least a summary or abstract in lieu of the full draft text, of the regulation.
b. The ACIR will promptly transmit copies of the agency materials to each of the following State and local government associations: National Governors' Conference, Council of State Governments, International City Managers' Association, National Association of Counties, National League of Cities, and United States Conference of Mayors.
c. Unless an earlier response is required, the State and local government associations desiring to comment will transmit their views within three weeks after receiving the summary, addressing comments to the Federal agency concerned through the ACIR.
d. If requested by either the Federal agency concerned or by a State or local government association, the ACIR will arrange a meeting between representatives of the agency and the association (along with State or local chief executives or their representatives, where desirable) to consider modifications of the proposed regulation.
e. The agency will supply a copy of the regulation, when published, to the ACIR.
f. To see that these provisions are carried out, each agency should promptly designate one responsible official, and inform the Bureau of the Budget and the ACIR as to the name of the official.
6. Additional functions of the ACIR.
a. The ACIR is prepared to assist agencies in developing new regulations covered by this Circular and will assist in assuring that regulations dealing with like matters are consistent, as provided in paragraph 3(d).
b. By January 31 of each year, the ACIR will make a report to the Director of the Bureau of the Budget concerning operations under this Circular. Copies of the report will be furnished to each agency and to the associations representing general units of State and local government.
7. General considerations. This Circular deals with only one aspect of the President's policy on intergovernmental consultation: the development of regulations relating to Federal assistance programs. The Circular is not intended to limit the consultation process to this aspect of the intergovernmental problem. Well in advance of the stage of promulgating formal regulations, consultation should be pursued actively with heads of State and local governments; and to this extent the burden of consultation requirements will be spread instead of concentrated at the stage of issuing regulations.
It is not intended that all proposed regulations or revisions will be automatically channeled through the procedure called for in this Circular; no purpose would be served by creating congestion and delay. Judgment must be exercised by the agencies and by the State and local governments in applying the Circular; selectivity will be needed in determining which substantive and administrative regulations are significant enough to be put through the consultation arrangements, As experience is gained, Federal agencies and State and local governments can be expected to work out a mutually productive system of consultation, with flexibility and room for judgment as to what is important.
The Circular is addressed primarily to new regulations or revisions of existing Federal regulations. However, agencies will give constructive consideration to requests from heads of State and local governments to review and revise regulations already in effect, and to consult with such officials on request.
8. Effective date. The provisions of this Circular become effective 30 days from the date of issuance.
CHARLES L. SCHULTZE, Director.
Attachment.
[Attachment to Circular No. A-85]
The President's memorandum to heads of certain Federal agencies, November 11, 1966.
Memorandum from the President to: Secretary of Defense, Acting Attorney General, Secretary of the Interior, Secretary of Agriculture, Secretary of Commerce, Secretary of Labor, Secretary of Health, Education, and Welfare; Secretary of Housing and Urban Development, Director, Office of Economic Opportunity, Director, Office of Emergency Planning.
Subject: Advice and consultation with State and local officials.
The basis of creative federalism is cooperation.
If Federal assistance programs to State and local governments are to achieve their goals, more is needed than money alone. Effective organization, management and administration are required at each level of government. These programs must be carried out jointly; therefore, they should be worked out and planned in a cooperative spirit with those chief officials of State, county and local governments who are answerable to their citizens.
To the fullest practical extent I want you to take steps to afford representatives of the Chief Executives of State and local government the opportunity to advise and consult in the development and execution of programs which directly affect the conduct of State and local affairs.
I believe these arrangements will greatly strengthen the Federal system at all levels. Our objective is to make certain that vital new Federal assistance programs are made workable at the point of impact.
I am asking the Director of the Bureau of the Budget to work with you, with the Advisory Commission on Intergovernmental Relations, and with the public interest groups representing State and local government in developing useful and productive arrangements to help carry out this policy.
[From the Dallas Morning News, July 3, 1967]
NEW ERA POSSIBLE-JOHNSON SILENCES GOVERNOR CRITICS
(By Jimmy Banks)
St. Louis, Mo. -- A new era in federal-state relations may be opening up as a direct result of criticism fired at President Johnson in December by several democratic governors.
They met in White Sulphur Springs, W. Va., to lick their wounds after the 1966 elections. They were highly critical of Mr. Johnson's failure, and that of other federal officials, to consult them on his revolutionary "Great Society" programs.
Saturday's meeting here of Democratic governors proved that, in typical Johnsonian fashion, it had taken him less than six months to win over some of his most severe critics when he felt winning them over was necessary. He apparently did so, in this instance, simply by investigating their complaints, finding many of them justified and taking steps to correct them.
During his brief visit here Saturday the President told the governors the federal system is achieving "a strength and a meaning it has never had before."
But he also assured them "your role in our partnership is critical."
"But to be effective, your hand must be strengthened," he admitted. "And today, I can tell you of one measure we are taking to accomplish just that.
"Very shortly, at my direction, every one of you -- every governor in this country -- will have a chance to review, to advise, and to consult on every federal regulation involving programs in your state.
"This is an historic breakthrough," Mr. Johnson declared. "It can have a revolutionary impact on our partnership and your position in it. It will strengthen your ability to plan, to budget, to coordinate, to an extent never possible in the Statehouse before.
"Other measures will follow," he promised, "to make your role stronger and your job easier.
"You know the seriousness of our purpose," he added. "Gov. Farris Bryant has led a team of top federal officials into 40 states during the last four months in meetings with governors and their key administrative officials. He tells me that during these meetings 1,333 separate problems or grievances were identified. Of these, 733 were answered on the spot; 456 were settled with quick follow up actions.
"That leaves 144 queries still to be answered -- just 1 per cent," the President said. "Even when those questions have been cleared up -- and I have given instructions that I want this done just as quickly as possible -- we don't expect to rest. New problems arise each day, and each day new solutions must be searched for and found."
After the President briefed the governors, they reported to him on his current prospects for reelection next year.
"What they said was music to my ears," the President reported later.
There can be little doubt that what Mr. Johnson promised the governors about their future influence was music to their ears.