ESTABLISHING AN ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00357R000100110003-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 17
• Document Creation Date: December 27, 2016
• Document Release Date: August 29, 2013
• Sequence Number: 3
• Publication Date: July 31, 1959
• Content Type: REPORT

I.
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86TH CONGRESS 1: HOUSE OF REPRESENTATIVES -5' REPORT
1st Session f No. 742
ESTABLISHING AN ADVISORY COMMISSION ON INTER-
GOVERNMENTAL RELATIONS
JULY 31, 1959.?Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. DAWSON, from the Committee on Government Operations,
submitted the following
REPORT
[To accompany H.R. 69041
The Committee on Government Operations, to whom was referred
the bill (H.R. 6904) to establish an Advisory Commission on Inter-
governmental Relations, having considered the same, report favorably
thereon with amendments and recommend that the bill as amended
do pass.
The amendments are as follows:
Page 2, line 24, strike "cooperation, and" and insert "cooperation;".
Page 3, line 3, strike "functions and" and insert "functions,".
Page 3, line 3, after the word "responsibilities" insert ", and reve-
nues".
Page 3, line 4, strike "government." and insert "government;
and".
Page 3, after line 4, add the following new paragraph:
(7) recommend methods of coordinating and simplifying
tax laws and administrative practices to achieve a more
orderly and less competitive fiscal relationship between the
levels of government and to reduce the burden of compliance
for taxpayers.
Page 3, line 7, strike "twenty-four" and insert "twenty-five".
Page 3, line 18, strike "six" and insert "eight".
Page 3, line 20, strike "five" and insert "six".
Page 3, line 24, strike "six" and insert "eight".
Page 4, line 3, strike "One" and insert "Two".
Page 4, line 4, strike "two" and insert "four".
Page 4, line 13, after the word "party" and before the semicolon
add 'and of the members enumerated in paragraph (7) of subsection.
(a), not more than one shall be from any one political party".
84006-59---1
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Z ADVISORY UUMM166101N ON INTERGOVERNMENTAL RELATIONS
Page 4, line 14, strike '4(5) and" and insert "(5).".
Page 4, line 14, after "(6)" insert ", and (7)".
Page 4, beginning in line 25, strike out "The President, or his
designee, shall" and all that follows down through line 2 on page 5.
Page 5, lines 3 and 4, strike out "The Commission shall elect a
Chairman and a Vice Chairman from among its members." and insert
"The President shall designate a Chairman and a Vice Chairman from
among members of the Commission."
Page 5, line 9, strike "and".
Page 5, line 9, after "6" insert ", and 7".
Page 5, lines 11 and 12, strike out "one name more than the number
of vacancies." and insert "two names for each vacancy."
Page 5, line 16, strike "Twelve" and insert "Thirteen".
Page 6, line 15, strike "of" and insert "authorized by".
Page 8, lines 12 and 13, strike out "expenses, including subsistence"
and insert "expenses".
Page 8, line 14, after "subsistence" insert "and mileage".
Page 8, line 14, strike "rate" and insert "rates".
PURPOSE
H.R. 6904, as amended, would establish a permanent bipartisan
Advisory Commission on Intergovernmental Relations which, on a
continuing basis, will (1) bring together representatives of the Federal,
State, and local governments for the consideration of common prob-
lems; (2) provide a forum for discussing the administration and coordi-
nation of Federal grant and other programs requiring intergovern-
mental cooperation; (3) give critical attention to the conditions and
controls involved in the administration of Federal grant programs;
(4) make available technical assistance to the executive and legislative
branches of the Federal Government in the review of proposed legisla-
tion to determine its overall effect on the Federal system; (5) encourage
.discussion and study at an early stage of emerging public problems
that are likely to require intergovernmental cooperation; (6) recom-
mend, within the framework of the Constitution, the most desirable
allocation of governmental functions, responsibilities, and revenues
among the several levels of government; and (7) recommend methods
of coordinating and simplifying tax laws and administrative practices
to achieve a more orderly and less competitive fiscal relationship
between the levels of government and to reduce the burden of com-
pliance for taxpayers.
Toe underlying purpose of the Commission is to strengthen the
ability of our Federal system to meet the problems of an increaSingly
complex society by promoting greater cooperation, understanding, and
coordination of activities between the separate levels of government.
The membership of the Commission would be drawn' for the most
part, from amongactive and responsible Public officials at all levels
of government. Thps, the Commission would benefit from both the
firsthand knowledge of its members of the Problems unoer considera-
tion and their ability_ to communicate the findings and reaommenda-
tions of the Commission to their respective levels of government.
' It is intended that the Commission will provide' guidance to the
"-PreSident and the Congress for the development of sound Federal
policies with res'pect to State and local government. The Advisory
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Commission, however, would in no way substitute for or interfere
with either the responsibility of the President for the coordination of
Federal intergovernmental programs or with the legislative responsi-
bilities of the Congress. It is intended that the Commission will also
provide guidance for the development of sound intergovernmental
relations at the State and local levels.
The committee wishes to emphasize its intention that the Commis-
sion will serve to strengthen State and local government so as to
preserve the values of our Federal system. It should be an objective
of the Commission to facilitate discussion of intergovernmental
problems and to identify governmental responsibilities as they arise,
and to make appropriate suggestions and recommendations to the
proper level of government if recognized responsibilities are not being
Met at such level.
BACKGROUND
H.R. 6904 implements a major recommendation of the 30th report
of the Committee on Government Operations which was unanimously
adopted in August 1958.
In that report (H. Rept. 2533, 85th Cong. 2d sess.) the committee
recommended "the establishment of a broadly based Advisory
Commission on Intergovernmental Relations, drawing its membership
from the Congress, the executive branch, Governors, State legislators,
mayors, county officials, and private citizens." The committee
envisaged "that such a large body would meet infrequently, but would
maintain working committees to deal with special problems and would
be assisted by a permanent professional staff."
The recommendation for an Advisory Commission is the result of
3 years of intensive study of Federal-State-local relations by, the
committee's Intergovernmental Relations Subcommittee. In the
course of its investigations the subcommittee held numerous public
hearings, including field hearings throughout the country during the
fall of 1957, and made questionnaire surveys and special studie0
The subcommittee's investigations pointed strongly to the need for a
permanent Advisory Commission to build on the 'foundation laid byl,
the Commission on Intergovernmental Relations (the Kestnbaum
Cornmission, whose 1955 report to the President and the Congress
was referred to and thoroughly studied by the subcommittee), and
the need to strengthen communication and relations between the?
1 The printed hearings and reports are as follows:
Staff Report on Replies from Federal Agencies to Questionnair: on Intergovernmental Relations (August
1956).
Replies from State and Local Governments to Questionnaire on Intergovernmenta .Relotions, Stith
Report by the Committee on Government Operations (H. Rept. 575), June 1957.
Federal-State-Local` Relations. Hearings before a subcommittee of the Committee on Government
Operations, House of Representatives (July 29, 30, and 31, 1957).
Federal-State-Local Relations, State and Local Officials. Hearings before a Subcommittee Of the Oath-
mittee on Government Operations, House of Representatives:
Part 1: Boston, Mass., and New York, N.Y. (Sept. 30, Oct. 1, 2, 3, 4, and 7, 1957).
Part: Chicago, Ill., and Kansas City, Mo. (Oct. 16, 17, 18, 21, and 22, 1957).
Part 3: Denver, Colo. and San Francisco, Calif. (Oct. 24, 25, 28, and 29, 1957).
Part 4: New Orleans, 'La., and Raleigh, N.C. (Nov. 18 and 19, and Dec. 10 and 11, 1957).
Federal-State-Local Relations, Dade County (Fla.) Metropolitan Government. Hearings before a sub-
committee of the Committee on Government Operations, House Of Representatives (Net. 21 and 22, 1957).
Tederal-State-Local 'Relations, .Joint Federal-State Action Committee. Hearings before a subcom-
mittee of the Committee on Government Operations, House of Representatives (Feb. 18, 1958). ;
; Federal-State-Local Relations, Nongovernmental Organizations .and Individuals. Hearingi before a
subcommittee of the Committee on Government Operations. House of Representatives (Feb. 25 and'25,
am). .
,,Federal-State-Local Relations, Federal ?Departments and Agencies. Hearings before a subconnnittne
'Of tlittotnnrittee`onOnvernment OPerations, House of "Repia,sentatives, Mar. 26. 27: Ar 2, 30: May 7, 8;
and June 19, 1958.? ,
_ ,
Federal-State-Local Relationd,'FederaiGfantaLin!Aid;"20th Report by the Cam'mittee on Goverhnient
Operations (H. Rept. 2533), August 1958.
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4 ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS
levels of government. The Kestnbaum Commission's 2-year study
of intergovernmental relations was the first official undertaking of its
kind since the Consitutional Convention in 1787.
Identical bills to establish an Advisory Commission on Inter-
governmental Relations were introduced in the House on May 6,
1959, by Representative L. H. Fountain (H.R. 6904) and Representa-
tive Florence P. Dwyer (H.R. 6905). A companion Senate bill,
S. 2026, was introduced by Senator Edmund S. Muskie for himself
and 25 cosponsors.
JOINT HEARINGS
Joint hearings were held on the identical bills, H.R. 6904, H.R.
6905, and S. 2026, by the Intergovernmental Relations Subcommittee
and the Senate Committee on Government Operations. In these
joint hearings, held on June 16, 17, 19, and 22, 1959, the committees
heard 21 witnesses and received written statements from 45 additional
individuals or organizations who were unable to be present.
The witnesses included Members of Congress, Governors, mayors
representing the two national municipal organizations, a spokesman
for the National Association of County Officials, and members of the
former Commission on Intergovernmental Relations.
Testimony or statements favoring this legislation were received
from 22 Governors. In addition, the committee received communica-
tions from 16 Governors who were unable to attend the hearings and
who expressed no opinion on the bills. No Governor was opposed
to the Commission's establishment.
State Senator Leslie B. Cutler of Massachusetts presented the
committees in joint hearing with a unanimous resolution adopted
June 10, 1959, by the Massachusetts Senate memoralizing the Con-
gress to enact this legislation for the establishment of an Advisory
Commission on Intergovernmental Relations. Similar resolutions
have also been adopted by the American Municipal Association, the
U.S. Conference of Mayors, and the National Association of County
Officials.
NEED FOR COMMISSION
The need for a permanent Commission to give continuing attention
to intergovernmental problems has been widely recognized.
Ten years ago the first Hoover Commission recommended the
establishment of a Commission on Intergovernmental Relations.
Last year this committee, after hearings by its subcommittee
throughout the United States, made a similar recommendation. In
emphasizing the need for a permanent commission the committee
stated in its report:
Occasional studies and ad hoc committees, however useful,
are not an effective substitute for the continuous review of
intergovernmental programs and problems from the stand-
point of the Federal systeni as a whole.2
Last month a joint hearing of the Intergovernmental Relations Sub-
committee and the Senate Committee on Government Operations
adduced unanimous testimony in support of a permanent commission.
This support had no geographical limitations, no political differences,
no divisiveness as between levels of government.
H. Rept. 2533, 85th Cong., 2d sem, p. 39.
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5
The advocacy of distinguished witnesses was universal and reflected
many areas of interest and experience; it also, with unconcerted fore-
sight, anticipated numerous arguments which might be made against
,the proposal by those who are not as close to the problems involved.
This report, therefore, incorporates excerpts at some length from their
testimony.
EXCERPTS FROM TESTIMONY
Mr. Meyer Kestnbaum, in speaking of the work of the Commission
on Intergovernmental Relations which he headed, stated:
I am sure I need not remind you that the Commission, in
making its report, had in mind the fact that its study was only
the beginning of a real inquiry into the whole subject.
I should like to go on record as saying that the idea of a
commission that will give the President and the Congress the
benefit of careful, incisive research and examination of the
many problems that face us in this area, is sound, and that it
can fulfill a very important and useful function.
Former Congressman Brooks Hays, who served as a member of the
Kestnbaum Commission, addressed himself to what is frequently the
first reaction when a commission is proposed. Mr. Hays said:
I see no escape from what you might call the proliferation
of agencies. Now I do not mean that we can go on just
multiplying commissions and agencies, but as we find some
new need, and establish a commission, we also find the
atrophy of commissions that were born out of another neces-
sity that can be abandoned.
But to refuse to meet a new need, with imagination, such
as underlies this legislation, is simply not to give proper
weight to the dynamic character of this Federal system.
I see no escape from it. In other words, the alternative
of doing nothing because you do not want to yield is to assume
that we have already achieved the ideal. But we need
changes, and inaction is unthinkable with America's genius
for going forward in other fields.
One trouble, Mr. Chairman, is that we have lagged in
working this whole political enterprise, as I like to call it.
i
People n America have falsely assumed that the system,
being what Gladstone said, largely will operate itself.
And we have given so much of our intellectual energies in
America to other fields?the fields of business, of education,
and of religious institutionalism, if I might come into another
field that has demanded some of my attention in recent
years, as the chairman knows.
If we could relate these energies to this problem of getting
people to recognize their mutual interests and to be less rigid
in their loyalties to local, State, and Federal Government so
they see the higher level through imaginative eyes, if we
could pour some of their righteousness into the political enter-
prise as distinguished from the valid other loyalties of corn-
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merce, and so on, I think we would be meeting the demands
of the 20th century, because man is a political creature and he
must not let there be a lag in this field.
Representative Harold C. Ostertag, who was also a member of the
Kestnbaum Commission, in voicing his support countered the argu-
ments which might be raised against creating a new commission in
this way:
Of course, with any of these proposals we Must face the
reaction which can be expected to the creation of another
commission. But when a good cause is to be served, as in this
?case, I think this is an obstacle which can be overcome by
logical and sound explanations.
Certainly, there is a continuing need for machinery in our
governmental structure to provide the guidance and the
balance essential to strengthening our system of Government.
The creation of a continuing Commission on Intergovern-
mental Relations, in my judgment, makes possible such
machinery and provides the means for the necessary follow-
through which is so important to the very objectives we seek.
Further explaining his support for an advisory commission, Repre-
sentative Ostertag said:
Now, on the former Commission on Intergovernmental
Relations, the so-called Kestnbaum Commission, we con-
cluded exhaustive studies in a great many areas of inter-
governmental relations. There was not agreement on all
of our findings but one thing on which we did agree was that
there was a definite need for continuous study and observa-
tion of intergovernmental relations in this country. Some
felt that this could best be done from an office in the execu-
tive. Others felt that a broader independent commission
would be more suitable for the purpose. So, while there may
be various vehicles for carrying out this work, I feel that
the bills which are being considered by this committee are
a step in the right direction.
The aims of the Commission which is proposed are very
sound and worthy of attainment. I note that this is to be
an advisory commission, but I would hope that this com-
mittee would consider more measures for translating the
advice and recommendations of such an advisory commission
into concrete results. ?
The committee heard from still another former member of the
Kestnbaum Commission, former Gov. Sam H. Jones of Louisiana, who
wrote:
In my opinion there is no validity to the arguments that
"this is just another commission" and "it has no power and
can do nothing." The wisest thing about our Federal system
is that each level of government is, within limitations,
autonomous within its own sphere. It is, therefore, within
the nature of our system that no one level can completely
dominate the other two levels. This legal situation makes an
advisory commission the only method by which we can tackle
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_ INTERGOVERNMENTAL RELATIONS
and ultimately solve the accumulated and constantly increas-
ing problems of our three-level system.
And I might add here that, whilst the controversy between
the advocates of States rights and those who lean toward
national control is very real and highly publicized, there is
another controversy that is just as determined. I refer to the
battle that is now raging between the advocates of State
control and those who sponsor wider latitude for municipal
and county governments. This latter controversy is, in
many respects, more difficult than the former because local
governments are creatures of the State; while the States
are not the creatures of the National Government. It is
much more important, therefore, that there should be brought
about some forum for the discussion of State-local problems
than for the discussion of national-State problems.
The proposed Advisory Commission on Intergovernmental
Relations would do both.
Gov. Herschel C. Loveless of Iowa explained the need for an
advisory commission in this way when he appeared before the joint
committees:
The refinement of the science of intergovernmental rela-
tions, I am firmly convinced, is an important key to the
future success of Government under our Federal system.
To compete with totalitarian nations, who command certain
efficiencies, however repugnant their philosophy may be to
us, we too must develop new methods of obtaining economy
and efficiency in our democratic system. Studious efforts
to improve coordination and eliminate duplications between
the levels of government, both in regulatory functions and
in meeting human needs, will, I am convinced, do wonders
toward obtaining these results.
Of course, today, as heretofore in our democracy, our
problem is a dual one. We do not propose to sacrifice any
of our basic liberties under the Federal system in our zeal to
make government work more efficiently. But, as I have
stated earlier, I am convinced that the true prerogatives of
State and local government can best be preserved by con-
stant study and reevaluation of the appropriate roles of
each level of government in the complicated pattern of
intergovernmental relations.
Additional studies performed by temporary commissions
and ad hoc committees cannot do the job. The face of gov-
ernment changes, too rapidly. A permanent, impartial
agency, equipped with the necessary resources, is required
for this important work. I submit to you that the proposed
Advisory Commission on Intergovernmental Relations is the
logical answer.
Gov. G. Mennen Williams, who also testified in person in the joint
hearings, said:
The Advisory Commission would make a significant contri-
bution' I think, if it were to review the areas of coordinate
Federal and State responsibility with a view toward raising
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-those unresolved questions of jurisdiction and responsibility
that should be considered by both the Federal and State
Governments. I am not suggesting any specific directions
that either the Federal or State Governments should take but
?rather recommending that this important series of problems
be given the kind of study that an Advisory Commission
could provide.
There is no question in my mind, however, that the whole
range of Federal activity should be analyzed constantly with
a view toward relieving it of those responsibilities that can
be done better or just as well by the States. I suggest this
because I feel that the Federal Government should be
strengthened in its capacity to do those things which it alone
can do. Specifically, I think this encompasses the crucial
tasks of foreign relations, national security, and economic
stability. * * * I have indicated what appear to me to be
the major issues confronting the American Federal-State
system. Study of these issues is the basic reason why I feel
the proposed Advisory Commission on Intergovernmental
Relations is desirable and should be established. Therefore, I
urge favorable committee consideration for H.R. 6904 and
recommend its quick enactment by the Congress.
Gov. William G. Stratton of Illinois wrote the committee that?
In my opinion, the creation of such a permanent commis-
sion is timely and necessary.
The Federal system of government which is so precious to
all of us depends in essence on cooperation and correlated
activities of the various State governments and the Federal
Government. With the explosive growth of population and
urbanization we are now experiencing, it becomes imperative
that the relationships among our governments must be har-
monious.
A permanent commission could serve as a clearinghouse
for the various studies and investigations which are being
made of the functions and responsibilities of our govern-
ments. In my opinion, such a commission would not over-
lap any of the work now being done, including that of the
Joint Federal-State Action Committee in which the Gover-
nors' Conference plays an important role.
Gov. Luther H. Hodges of North Carolina expressed his view of the
Advisory Commission in this manner:
From the beginning of my service as Governor of North
Carolina, I have had many occasions to deal with vital ques-
tions affecting Federal-State relations. It is my present
privilege to serve as a member of the Joint Federal-State
Action Committee (an unofficial group of State and Federal
officials), of which the U.S. Secretary of the Treasury and the
Governor of Idaho are currently the cochairmen. In my
capacity as Governor and in my capacity as a member of
this Joint Federal-State Action Committee, I have become
thoroughly convinced that there is a strong need for a con-
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INTERGOVERNMENTAL RELATIONg-
p.
tinning and officially recognized advisory agency to give con-
centrated attention to Federal-State problems.
Special studies in this area such as was done by the Com-
mission on Intergovernmental Relations are helpful and of
course the special attention to the overall problem which has
been given by the Intergovernmental Relations Subcom-
mittee of the House Committee on Government Operations
has made a great contribution to our understanding in this
area. But what is needed is a continuing advisory agency
which can take up specific selected problems, work out
specific solutions, and provide adequate followup to see that
proposed action on specific problems is given adequate con-
?
sideration by the Federal Government and by the States.
Gov. Foster Ftircolo of Massachusetts made the point that?
It is important, moreover, that the present Federal grant-
in-aid formulas be surveyed to determine whether they are
equitable. It is desirable, too, to have some source of clear
and accurate information as to the Federal grant program so
that State officials of both the executive and legislative
branches of government will have a clear understanding of '
Federal programs. Such an understanding is vital in the
formulation of policy and the establishment and adminis-
tration of programs within the State.
Senator Clifford P. Case of New Jersey took note in his statement
of the effects of the growth of government that has taken place on all
levels over the past few decades:
,The interrelation of Federal, State, and local governmental
units brought about by this growth has in turn created
problems of its own. Our Federal system has had to adjust
in a manner undreamed of by our Founding Fathers. Since
much of the expansion in government has been on an ad hoc
basis, it is perhaps only natural that inefficiency and con-
fusion have frequently accompanied this growth. But it is
imperative, for the future, that efforts be made now to insure
a.- more fruitful cooperation between the various levels of
government. The proliferation of grant-in-aid programs
alone demands continuing study and evaluation. And there
are numerous areas of jurisdictional conflict which should
receive more attention, particularly in relation to current
growth trends.
I am convinced that the establishment of a permanent
..Advisory Commission on.Intergovernmental Relations would
?do Much in this direction. It is a practical idea and one that
could result in concrete suggestions for the improvement of
our Federal system. By bringing together officials and
experts from all levers of government, the proposed Com-
mission can foster a spirit of coopertition and understanding
which is so essential to a proper functioning of a Federal
system, and which in turn 'could pave the 'way for significant. .
improvements-in the administration 'of cooperative programs. :
More than ever, we need a group of this nature to study
the 'coritin.uirig -impact of a growing -society on a-systein of'
H. Rept. 742, 86-1---2
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_N INTERGOVERNMENTAL RELATIONS
government that was originally established for a rural nation
of only 3 million people. Thanks to the flexibility of our
Constitution, we have been able to adjust to the enormous
changes which have taken place since that time. Today,
however, we live in an age in which the consequences of
change are much more immediate and significant than they
were 170 years ago. If we value the basic outlines of our
Federal system, with its balance of National and State
jurisdictions, we must pay more constant attention to the
problems associated with intergovernmental relations.
I believe that the proposed Commission would prove a
valuable and necessary service for the betterment of our
system of government.
Representative Chester W. Bowles of Connecticut pointed out the
urgency of improving communication between the levels of govern-
ment:
The basic problem, as both the Kestnbaum Commission
and this subcommittee's report have pointed out, is one of
communications. It seems impossible in this day and age
that a coordinated, effective means of sharing information
and ideas between the Federal, State, and local govern-
ments does not exist, but unfortunately this is the case.
As a former Governor of Connecticut, who has faced the
confusion and inconsistencies of the present situation from
a State capitol, I feel very strongly that the proposed
Advisory Commission on Intergovernmental Relations is a
constructive, forward step which is long overdue, and I
sincerely hope that favorable action on this proposal can be
taken soon.
Senator Jacob K. Javits of New York emphasized the pressing need
for systematic and continuous attention to Federal-State relations:
S. 2026, which would establish an Advisory Commission
on Intergovernmental Relations, deals with a problem
which has perennially plagued our Federal system, and
which has become more pervasive and more acute with the
increasing role of the Federal Government in our society.
It is high time that the entire problem of relations between
the States and the Federal Government be given systematic
and sustained attention on a broad basis, since piecemeal
attack on the problems of conflict of jurisdiction and admin-
istration between them has proved inadequate.
Senator Estes Kefauver of Tennessee pointed out the value of the
_Commission to the committees of Congress:
In its broadest sense, S. 2026 would, I believe, help tre-
mendously in bringing about a better understanding of
mutual problems among officials of local, State, and Federal
Governments.
Such an intergovernmental advisory commission as S. 2026
proposes would also be of great value to the various com-
mittees of Congress in providing a broad perspective of the
total picture of the programs which now originate in many
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_ ?sr INTER-GOVERNMENTAL RELATIONS 11
committees and are directed to many, different jurisdictions.
Coordination of tax resources is still another advantage that
can be brought about through the functions of the proposed
agency.
Representative Silvio 0. Conte of Massachusetts noted that the
Commission would be of particular value to State legislatures:
As a former State legislator, having served for 8 years in the
Massachusetts State Senate, I am particularly aware of the
desirability of bringing the legislative branch of State govern-.
ment into closer contact with Federal officials in connection
with intergovernmental matters. I note with satisfaction
that the Advisory Commission would facilitate this objective
by including State legislative representation in its member-
ship. Our State legislatures are desperately in need of more
information on the many Federal activities that require State
and local cooperation. Moreover, I believe their interest
in these intergovernmental activities should be stimulated
well in advance of the point at which the Congress takes
legislative action which, for all practical purposes, neces-
sitates State and local financial and administrative
participation. A permanent Advisory Commission should
provide an excellent educational medium for developing
greater State legislative interest in this field. Such a develop-
ment, I believe, would be extremely helpful to the legislative
committees of the Congress.
Senator Winston L. Prouty of Vermont stressed that the Commis-
sion would not interfere with the prerogatives of State and local
government:
I cosponsored the Senate bill under consideration only
after satisfying myself that such a commission as the bill
visualizes offers no threat of interference with State and local
units of government. The people of Vermont have always
placed a high value on their rights and prerogatives under
local units of government. They like to make their own plans
and decisions and they have not usually gone out of their
way to welcome what they consider outside interference, even
though they may know it is intended to be helpful.
I am convinced that the proposed Advisory Commission
on Intergovernmental Relations will not constitute inter-
ference. On the contrary, it should help protect the
legitimate interests and prerogatives of State and local
governmental units, should help eliminate overlapping of
operations, provide useful information, and increase
efficiency.
In addition, such a commission should prove most useful
to the Federal Government through assisting Congress in
_assessing local opinion on intergovernmental problems,
through smoothing out relationships between Federal
agencies and departments and local governments, and in
keeping open the channels of communication among the
various levels of government.
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4.4 Ju,viounz LALLY12/1/00.1.V.1.1 vN INTERGOVERNMENTA RELATIONS
Representative Byron L. Johnson of Colorado pointed out several
areas where intergovernmental policies tend to conflict:
Let me speak first to the powers and duties of the proposed
Commission. As the members of the committee know very ,
' well, there are a number of areas where Federal, State, and
local interests operate less than harmoniously. First, there
is, for example, the question of the right of each level 'of gov-
ernment to tax property owned by another unit and level of
government.
Second, there is the question as to whether interest on. the
debt obligations of one level of government can properly be.
taxed by another as part of income taxes. ,
Third, there is the question as to whether the payments in
? lieu of taxes now being made by some Federal agency is ade-
quate and properly related to the impact of such Federal
property upon local taxing jurisdictions.
*
; Fourth, there is the question of the reasonableness of 'the'
shared receipts and revenues on certain public lands. *;*
f.
? * *
Fifth,' there are questions as to whether or not certain taxes
act ,as trade barriers, contrary to the 'constitutional intent.
- 'Sixth, there is a very sensitive question of the rights of
Several States to tax the same property or income, beeause
the Federal courts have taken a Very permissive attitude to-
ward . multiple, and overlapping State taxation. Congress
and the Federal Government could. do much'under the Con-
stitution to accomplish substantial uniformity in State laws
with great benefit to American businessmen . in ? simplifying
their tax compliance. ?Such improvements need' not mate-
rially reduce State revenues but should certainly ? simplify.
tax administration and enforcement.
' One of the hidden areas in public finance. is ou'r. lack of
? ?
? knowledge of the cost of compliance upon taxpayers in filling,
out the thousands of forms that they are.requii?ed to ,fill out,
for the thousands of taxing jurisdictions with which the larger,
Corporations must deal. Many taxpayers are plagued by the:
inconsistencies and complexities of the various, tax?jurisclic-
tiions haVing power to tax them.
?
Notv,.these questions 'will never, be resolved if We wait for
neighboring States *to work' out Suitable ,answers; They.
might be resolved by having-a Federal, commission conduct-
ing continuing research, issuing 'publications,-, and ?holding,
ConferenceS as background for appropriate 'change in,law att
each level..
Finally, , there . is a :4neiti9n ,of , is,
sbedificallY provided for 'bY.Tr.R. 6904e., ?
Mayor Frank P.? Zeidler of Milwaukee; representirirthe'V.S.4Con-
ferenoe of Mayors,.described.:the need for-an a'dy;fsory:?eotnihiSSion in
these fterms?:: . ? ;:; ..;
? - ?-? vtvve !r4-
Bills H.R. 6904 and S. 2026, 'I1iveb?I?lii
1?y
lack of formal assembly to gather information from all levels
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of government in order to adjust the difficulties which may
exist between these levels. It would also remedy the lack of
sense of direction which the Federal, State, and local govern-
ments have as to where each one is going with respect to each
other. It will provide an avenue for channeling the best
technical information and most comprehensive knowledge
that is now possessed by experts in the United States in the
science of government that this knowledge may be able to
improve the inner workings of government in the United
States.
Mayor Gordon S. Clinton of Seattle, testifying for the American
Municipal Association, stated that?
because the Commission proposal recognizes the need for
equitable, responsible, and knowledgeable representation on
the part of all levels of government * * * we feel that the
conclusions reached as a result of its deliberations will enjoy
considerable acceptance on the part of all levels of govern-
ment * *
I am certain that we can effect better intergovernmental
relationships, that we can encourage and promote realinement
of functional responsibilities at various levels of government,
that we can do some within the broad framework of govern-
ment laid down by our Constitution. And, in so doing, be
secure in the knowledge that our democratic process and
individual freedoms need never be violated in the course of
our work.
Mr. Saul I. Stern, chairman of the Montgomery County chapter of
the Maryland Municipal League, expressed the thinking of a public
official familiar with the problems of small urban communities:
I believe that those of you who have been in contact with
State, county, and municipal officials can agree that the
vast majority of these elective and appointive officials are
very dedicated and devoted public servants. I believe a
great many of the problems, a great part of the inaction,
arises from the fact that these particular officials are con-
fused, and they have no course or direction because they are
truly bewildered by the complexities of our population and
physical growth. And of course all of us who are public
officials are staggered by the spiraling costs of government.
We wonder where the dollars are going to come from to
provide the increased demands of service which our popula-
tion is insisting upon. And I think that if this Commission
is set up?and I am most hopeful that it will be?and if it
sits down to determine the roles, functions, duties, and
services that the various levels of government should per-
form in light of these constantly changing conditions im-
posed by growth, we will have made a real step forward to
the solution of the financial as well as a good many of our
other problems.
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INTERGOVERNMENTAL RELATIONS
I think we need to have representative of the Federal
Government, and representatives of the State, county, and
municipal governments sitting down and discussing these
problems together. We need, however, first of all to deter-
mine what our common problems are. * * *
If our Federal system is to be workable, if it is to be vital,
and if it is to be continued on a strong and firm basis, then
we must have this sort of study. But we must have sur-
vival of all systems of government. It is my firm belief
that as long as people participate in government at all levels
we will have a very strong, vibrant, and a really meaningful
democracy. And I am most hopeful that the Commission
on Intergovernmental Relations will be set up on a continu-
ing basis. I think it should be established now and should
be placed on a permanent basis.
NATURE OF COMMISSION
The committee views the Advisory Commission as a political
innovation?a new type of organization designed especially to cope
with the changing problems encountered in our Federal form of
government. It will be a genuine interlevel body, not an agency
dominated or controlled by any one level of government.
In providing for the appointment of Commission members, the
committee has sought to assure the selection of persons possessing
special knowledge and qualifications in this field. Thus, the com-
mittee favors the participation of the designated organizations in the
selection of State and local members since these organizations are well
equipped to recommend outstanding individuals from their respective
levels of government. However, the committee also favors the
appointment of members from panels as proposed in H.R. 6904, as
amended, because it believes the President is in the best position
to weigh such considerations as the geographic areas and the types of
communities represented so as to produce a well-balanced advisory
body.
Similarly, the committee believes that the President is best situated
to designate the Chairman and Vice Chairman, who should possess
outstanding qualifications for these assignments and a reputation for
objectivity which will make them generally acceptable to all levels of
government.
The committee studied two other proposals for the appointment of
Commission members. It was proposed, on the one hand, that the
State and local organizations directly appoint representatives to the
Commission, and, on the other hand, that the selection of members be
left completely to the discretion of the President. Neither of these
proposals is believed as desirable as the procedure recommended by
the committee.
It is the committee's intent that the designated organizations will
take geographic considerations into account in selecting the panels.
Further, the committee is confident that the President and these
organizations will work together for the purpose of achieving an
objective and geographically balanced body.
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INTERGOVERNMENTAL RELATIONS 15
It is the committee's expectation that members will come to the
Commission with open minds and with the intention of working
toward the ultimate goal of responsible and effective government at
all levels of our Federal system. In this connection, the committee
also believes that the members will not regard themselves as primarily
representatives of any particular group, level of government, or geo-
graphic area for the advancement of a special point of view. It is
intended that the Commission will not urge a Federal solution simply
because Federal action appears the easiest course. It is rather in-
tended that it will encourage the assumption of responsibility by the
appropriate level or levels of government with respect to any given
problem.
It is the committee's expectation that the Commission will estab-
lish working subcommittees which will give intensive and continuing
study to important problems of concern to the Commission as a whole.
The committee is hopeful that the Commission will function as a
coordinating center for the study of intergovernmental relations and
will encourage and stimulate attention to the problems in this field
not only on the part of government but by the universities and private
foundations as well.
COOPERATION OF THE STATES
Consideration was given to the States contributing a portion of the
Commission's operating expenses. While the committee believes
joint Federal-State financial support is desirable in principle, con-
siderable doubt has been raised as to the practicability of such an
arrangement. In order to avoid handicapping the Commission, the
committee believes it advisable that the Commission's operating ex-
penses be paid for the present wholly from Federal funds.
However, the committee is of the opinion that the States should
and will wish to contribute indirectly to the Commission's support by
furnishing staff assistance to the Commission and to its working
committees.
It is expected that the State and local governments, collectively
through their respective organizations, and individually where feasible,
will cooperate actively with the Commission in the collection and
analysis of State and local research data and by the assignment, when
needed, of appropriate personnel to assist in the conduct of specific
research projects.
CONCLUSION
Upon recommendation of the Intergovernmental Relations Sub-
committee, the full committee favorably reports H.R. 6904, with
amendments, to establish an Advisory Commission on Intergovern-
mental Relations.
The committee recognizes that the particular organizational features
provided by this bill may require adjustment from time to time in
response to experience and changing conditions. For the present,
however, the committee is satisfied that the bill, as amended, repre-
sents a sound and carefully planned method of accomplishing the
important objectives intended for the Commission.
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V INTERGOVERNMENTAL RELATIONS
The committee adopted five principal amendments of H.R. 64304
to incorporate recommendations made by witnesses in the joint
hearings and by the Director of the Bureau of the Budget. These
amendments are: (1) An elaboration of the declaration of purpose
to clarify and make more explicit the breadth of the Commission's
responsibilities (sec. 2(6), (7)); (2) enlargement of the membership of
the Commission from 24 to 25 members, to provide greater repre-
sentation for county government (sec. 3(a)); (3) enlargement of the
size of the panels to be submitted to the President by the several
State and local organizations for the appointment of Commission
members, in order to afford the President greater flexibility in the
appointments (sec. 3 (a), (4), (5), (6), (7)); (4) increase the number
of members from county government from one to two (sec. 3 (a), (7));
(5) provision for designation of the Chairman and Vice Chairman of
the Commission by the President from among members of the Cora-
mission (sec. 4(b)).
In addition, the committee adopted a number of technical perfecting
amendments.
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ADDITIONAL VIEWS OF HON. CLARE E. HOFFMAN
H.R. 6904 is an. outgrowth of the 30th report by the Committee on
Government Operations in the 85th Congress. Among the findings of
that report?a report in which I concurred?was one to the effect
that there was generally favorable acceptance throughout the Nation
of the grant-in-aid principle anid most existing grant programs.
However, throughout the hearings upon which the report was based,
it became apparent that the tangled web of intergovernmental rela-
tionships, in a complex which encompasses echelons ranging from the
local to the national, was sorely in need of continuing review and
coordination.
While I am basically opposed to the Federal Government con-
tinually increasing its authority and activities, especially those which
should and can be performed by the States and the municipalities,
inasmuch as that tendency will continue, we certainly must seek
means to make the spending and the controls as efficient and economi-
cal as possible.
Perhaps the creation of a commission such as that provided for in
the bill will tend to bring about those objectives?that is, less spend-
ing, less waste, greater efficiency.
CLARE E. HOFFMAN.
17
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