TASK FORCE ON URBAN AFFAIRS 887

in gross benefits, including unprecedented, urban-oriented State aid
for local police and inner city schools.

However, our efforts are frustrated not only by our lack of revenue
but by the Federal government's current practice, which is to widely
scatter seed money and after a year or two withdraw or curtail sup-
port. This leaves the city with its extremely limited resources to
foot the bill. The city is forced either to cut off programs, raise al-
ready high taxes, or appeal for state aid. Thus, the state government
— previously ignored by the Federal-city alliance — winds up holding
the bag or the bill.

Our problems are compounded by the tremendous financial bur-
dens placed on the state by such rapidly changing Federal programs
as Medicare-Medicaid; and by the fluctuations in our anticipated
tax revenues caused by national monetary policies. In addition, the
Federal government's own fiscal problems have resulted in vacillation
over Federal aid, causing state uncertainty as to whether we can pro-
ceed in diverse fields from employment opportunities to urban inter-
state highway construction.

Consistency in Federal policy and consistency in Federal aid com-
mitments are imperative if the state is to plan properly and the
city is to keep its promises to the poor. On the other hand, I am
aware and concerned that, as Governor Nelson Rockefeller has noted,
"as a nation we are close to becoming dangerously over-committed. "
I share former Vice President Richard Nixon's view that the only
thing worse than failing to fulfill a promise, is making a promise,
fully cognizant that it cannot be fulfilled.

Presently, most significant Federal aid is by way of categorical
grant. In many cases the incompatibility of such restrictive assistance
with existing state programs prohibits full utilization of the aid.
There seems to be a recent trend toward bloc grants — for example,
the recently enacted Safe Streets Law. Every Governor I have talked
to, regardless of party, is enthusiastic about the flexibility of bloc
grants. It is suggested that the Congress consider grants in such
broad areas as transportation and health, rather than roads, mass
transit or heart, stroke and cancer. A metropolitan transit system
doesn't really excite a state like Alaska or Wyoming, and I am sure
those Governors would appreciate the ability to convert that as-
sistance to their roads programs.

As to equalization, we have too long considered a combination of
assessable wealth and income. I believe we should consider the as-
certainable effort, the overall burden on the taxpayer.