duplication, and fragmentation of the
existing grant structure necessitate a
vigorous state role. States can provide
a valuable service to their local govern-
ments by offering accurate and up-to-
date information on what grants are
available for what purposes. They can
clarify application requirements. They
can assist their localities to organize and
gear up for making applications and
administering programs. They can help
localities to file applications. In many
fields, such as education and welfare, a
state line agency has long-standing rela-
tionships with federal agencies admin-
istering new grant programs. These and
other state agencies can be invaluable in
bringing the new federal programs to
the local communities, and in helping
the latter to take advantage of them.
In addition, one of the critical needs
in our federal system is the shortage of
trained personnel. So serious is the need
now that the Congress in 1967 is likely
to consider legislation requiring exten-
sion of existing merit system require-
ments; making grants to assist state and
local personnel administration; and pro-
viding financial aid for training state
and local personnel. State governments
can be of considerable assistance in
helping recruit, select, and train local
personnel as they already have done in
the field of assessing.
Finally, and most important, states
can increase the amount of financial
assistance they provide for their locali-
ties.
Consistent with their responsibilities
for achieving an equitable and balanced
overall system of taxation and for hus-
banding their economic resources, the
states should authorize their localities to
levy new taxes, particularly as "piggy-
backs" to state wide sales or income
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taxes. They also should expand the
amounts of grants-in-aid to their locali-
ties by increasing state aid and assisting
localities in paying their share of federal
programs. Only by "buying into"
federal-local grant programs, picking
up at least one-half the non-federal
share, and establishing appropriate, ad-
ministrative machinery can the states
fairly claim a right to participate in the
direction and administration of federal
grants to localities.
In administering their own programs
of financial assistance, states must re-
examine their aid formulas. They must
be certain that adequate assistance is
going to those municipalities that need
it most. Specifically, the states should
make sure that their aid formulas help
offset the growing imbalance in re-
sources between central cities and sub-
urbs that plague metropolitan areas.
They must take positive steps here to
alleviate the mounting social and eco-
nomic disparities, increased tensions,
and specific urban problems such as
poverty, housing, and race relations. As
Professor Alan K. Campbell has pointed
out, while state aid allocation formulas
tend to favor rural over urban areas,
within urban areas they tend to favor
suburban as against central city areas.
He warns: "[The] . . . figures demon-
strate that, despite the increased fiscal
efforts being made by state governments,
they have not yet adjusted their aid sys-
tems to reflect the new metropolitan
reality."
GENERAL REPUTATION - NEGATIVE
Clearly, the states have a broad and
basic role to play in the urban affairs of
the nation. But ask most people if they
are playing it, or if they are likely to. In
most cases, you will get a skeptical, if
not negative, response. Why? The rea-
son stems from the generally critical
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