EXECUTIVE SUMMARY



1996 National Public Policy Education Conference

[Tim Penny -cont.]



There ,s an obvious trend toward lumping similar programs into one
category and then cutting the total amount budgeted.

Block grants simply aren 't as easy to defend as categorical grants. With
categorical grants, Congress knows exactly where money goes.

Block grants lost percentages of their budgets back in the 1980s.
Categorical grants remained protected.

Congress now has advanced a seven-year budget program. The cuts in
this budget accelerate after the turn of the century, when the fallout may be
other politicians ’problem.

For example, job training programs are being lumped together, with
responsibilities to be transferred to the states. And, in the initial years, the
budgets for those programs may be roughly the same. Over time, though, the
budget for that
block of programs will be vulnerable.

In addition, we ’re likely to see disproportionate cuts out of certain
discretionary areas. And states will have varying amounts of resources to
offset those cuts, depending on their tax capacity.

On the positive side, however, a recent report indicated taxing capacity
is still out there in some states.

It will sort out. There 's no other answer.

But we ’ll learn as we go. And I really believe we ’ll see leadership talent
emerge at the levels at which decisions will have to be made.

We 're at a crisis point. We can 't wait. Ifwe don ,t have basic change in
Medicare, Medicaid and Social Security, we 'll have to double payroll taxes to
stay solvent. Those programs are a big boulder we have to push over the hill
before it breaks us.

Barbara

Sheen Todd

St. Petersburg, Florida;
veteran county commissioner;
past president,
National Association of Counties


All 3,043 U.S. counties are evolving to meet the challenges
brought by change and growth. They are becoming regional and
intergovernmental coordinators, efficiency sources and problem
solvers.

As the relationships between federal, state, county and other local
governments change, the responsibilities for service and program
development will change, too. So far, much is unclear and undefined.

Counties are where much of the new federalism can happen. Still,
local officials are waiting with a certain sense of trepidation:

The Implications
of Changing
Federalism:
County View


■ Whose priorities will prevail?

■ Shouldn’t problems be solved at the level where the priorities
and extent of local problems are really known? After all, polls show
many voters are feeling ignored...almost disinfranchised...except on that
level where they can reach out and be heard.

■ Will mandated programs still be passed down from the federal/



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