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Show Page 2 Revenue Sharing- - Model Cities Process Vital in Revenue Sharing What is it? In revenue sharing, and its sister bill. Community More' than a few mysteries surround revenue-sharinand the first mystery which comes to most people's minds is "How do they divide the spoils?" There were essentially two formulas, one devised by the Senate and the other by the House of Representatives. Under the present plan, a state is given funds according to the formula which gives it the larger portion. Utah receives $31 million with $21 million of that going to cities and counties. The House formula is based on five factors. They are general g population, urbanized population, relative per capita income, state income tax collection and state and local general revenue effort. The Senate formula for distributing funds is based on state population, state and local tax effort and the inverse per capita income property factor in each state. Some people also have the idea that revenue sharing may go on forever. Actually the bill will provide an estimated $30 billion r over a period, beginning 1972. January 1, five-yea- Nearly $6 billion is 973, $6.13 billion anticipated in 1974, $6.2 billion in 1975 and $6.4 billion in 1976. in 1 Somehow revenue-sharin- g also creates a picture in the minds of some people of unrestricted spending by local municipalities. However, the bill provides for some general, though admittedly broad, guidelines for spending on the local level while it leaves state government free to form its own framework for using funds. Funds coming into the city as a result of revenue-sharin- g legislation can be used for the following: Public safety including law Development - which is expected through existing agencies, the existing systems within those to be passed this year do the necessary paper work which goes with it. The citizen's how the money is being used is protected because the use of usual and send them to agencies will right-to-kno- money is subject, to the same review in public taxes. hearing as are locally-raiseThis places a responsibility on the individual citizen to attend such public hearings and make his feelings known. revenue-sharin- g d Revenue sharing money cannot be used as a contribution order to obtain any matching federal funds under any federal programs, but it can be used to supplement other federal grants. For example, if the expenditures for a project exceed the amount available from funds plus matched federal funds, money can be used to defray the excess cost. These funds can only be used for supplemental purposes for programs defined within the in non-feder- communities all over the country collect their federal taxes as Washington. Federal officials, in turn, determine how much is then transferred back to state, county, and city governments according to their population and per capita income. Unlike federal grants in the past, with the exception of Model Cities, revenue sharing requires the local governments to decide how these new monies are spent. Cities which have had Model Cities processes already at work, it can be pointed out, have actually had a head start in deciding the direction of revenue sharing. Model Cities stresses the al priority areas for local -- importance participation of citizen in identifying problems and conditions, planning solutions and evaluating results - all of which will be necessary for effective revenue spending.' government. Your Role in Revenue Sharing In South Bend, Indiana, City Councilmen are seeking the help and advice of citizens from all over the community to help make these crucial decisions on what projects to fund. New city-wid- e task forces being formed by Model Cities are a step in a heightened communication with City Hall and the decision-makers. The new revenue-sharin- g in which more cities share their revenue or income, with poorer ones - has several advantages, it is technique well-to-d- - o felt. Cities now have the opportunity to develop their own strategies and programs to meet their own unique needs without problems. program areas, what political problems do you face in landmark federal-state-loc- al fiscal relations. The law the need and proposes recognizes the means to infuse state and local governments with more adequate resources to meet fundamental responsibilities. Model neighborhood residents have the opportunity to submit their proposals recommendations to the and Model Cities residents must remain alert, and learn the rules for the newest alternative. Remember too, that revenue sharing legislation governs and channels funds from one federal department, Housing and Urban Development (HUD), but that other federal departments funds affect the urban environment and quality of life. be priorities in General Revenue Sharing, and specifies how much money will be allocated to activities in those geographical areas? different target populations? b. Are there any criteria or rules you would propose to help people to determine how to set priorities? C. Would priority setting be more rational or less rational Environmental protection including sewage disposal, Citizen Participation structure Problem: Delivering Services Under Revenue Sharing A. Once priorities are set, how do you choose agencies to carry out the programs? Additionally, Model Cities planning processes developed Alcoholism in the including transit systems and through our history. In addition Community streets and roads. to the citizen participation abatement. Public transporation Revenue-sharin- g also creates a Participation and Revenue in setting priorities and planning relation to elected local officials and established agencies? city-wid- e in B. What will happen to existing citizen structures? C. Would CP structure be helpful to local elected officials to share responsibility for decisions? D. Given the general confusion and lack of knowledge about Revenue Sharing, what can and should be done to prepare the citizenry for Reveune Sharing? answers with us so that all Sharing. Revenue Sharing. Many of the picture of problems of the model and discrimination, More Information on Drug Programs and Treatment Centers progress differently? DON'T MISS THIS EXCITING ISSUE!! i Share your suggestions and traditionally providing services disadvantaged areas under probably additional staff, management and auditing systems to implement it. Since funds will be channeled Problem: Citizen subcontract to agencies component areas. These systems can and should serve as a core of services for the inner city and selecting service delivery agencies is more clearly a local matter? Assuming that pressure for evaluation will be stronger, would your city propose to evaluate i federal commitments to decades of neglect, exploitation Service Agencies Social services for the poor Cities has developed delivery systems for services in Financial administration and ordinary and necessary capital expenditures authorized by law. link in that process. neighborhood, stemming from The Future of Social and aged. citizens will remain the C. Will your city provide services not provided before by the city government, or will it process referred to here, Model Libraries. for agency responsibility and public evaluation be greater now that B. Will pressures i i evaluating programs, it is hoped, will show its true value as revenue sharing becomes a reality in Salt Lake City. The involvement of residents can learn. We, also, will be researching, asking questions of local officials and investigating what other cities are preparing to do in regard to Revenue Sharing and will report this information to you as we receive it. A reporter will attend the Quarterly Region 8 Citizens Council meeting in Denver on February 22, 23 and 24 which will cover many of the questions surrounding Revenue and Health, Recreation planning, managing and involved under the present system? NEXT WEEK: problems. The Model Cities process of program areas? different and City Commission. sanitation and pollution aimed at eliminating those allocating money to different enforcement, fire protection and building code enforcement. can determine which Model Cities projects should be recommended for city-wid- e impact, building on such as housing or education - and build interrelated programs Sharing A. How can citizens be under Revenue Sharing than Mayor -- g agencies? And commitments by agencies to the city? E. What are the options for agency and program identity and continuation? Which might your city choose and why? will ; approach to problem-solvinrather than isolating a problem programs, money is given by HUD for specific activities. If your city prefers to determine which program categories and activities I more comprehensive such as the county? D. What happens to existing after Model Cities has run its course. Revenue Sharing appears to be a new alternative for the future which can alleviate urban in a Problem: Setting Priorities Under Revenue Sharing A. Under present categorical allocation for poverty factor. The "State and Local Fiscal Assistance Act of 1972" is a take Some Questions on Revenue Sharing to Consider unfortunately, will still be there General Revenue Sharing funds are population, tax effort and V people on the "grass roots level will have a better chance to voice their opinions on how their federal tax dollars are spent. City Councils and Commissions can strict federal guidelines. The three primary criteria determining .1 More than ever before, J |