REPUBLICAN GOVERNORS CONFERENCE 991

As a member of the President's Advisory Commission on Inter-
governmental Relations, I have been impressed by its recommenda-
tions tor strengthening "fiscal Federalism. "

While I do not want to be entrapped by semantics, I believe that
new qualification criteria in Federal fiscal aid merit full exploration.
I feel that we have too long accepted a combination of assessable
wealth and income as the overriding ability factors in evaluating
governmental tax effort. I endorse the concept of equalization in
basic services, but believe it should be put in its proper perspective.
It is time to consider the ascertainable effort, the overall burden on
the individual taxpayer as well. It is time to reward those state and
local governments which exercise political leadership and courage to
establish essential programs. Too often the Federal grants-in-aid
system rewards do-nothing governments at the expense of do-some-
thing governments. Too often those who practice policies deliberately
countering the national interest are the biggest recipients of Federal
aid.

In the field of "fiscal Federalism, " as in the field of "political
Federalism, " I hold with the view expressed by President Theodore
Roosevelt: "States' rights should be preserved when they mean the
people's rights, but not when they mean the people's wrongs. "

Although this will mark my last major address as a Governor, my
new role will not alter my advocacy of the strong state as the bulwark
of our Federal system. I see the Nixon Administration as the era
of Renaissance for state governments. I see my office as one hastening
that era, both as the President's liaison to the Governors and as the
instrument for continuous dialogue between Congress and the Gov-
ernors.

Thomas Jefferson, who understood so completely the delicate re-
lationship between those governments closest to the people and our
Federal government, wrote: "Free government is founded in jeal-
ousy.... " Perhaps the time has come for state governments to ex-
ercise some of that jealousy. For we all know the best government is
born of balance and diversity.

Speaking as a Governor, I can see no reason why the states should
apologize for asserting their Constitutional prerogatives. Viable Fed-
eralism remains the best institutional answer for America and viable
state government stands at the center of this system.

What's more, state government is ideal for political experiment.
It was Supreme Court Justice Louis Brandeis who said: "Government