**ACIR: THE YEAR IN REVIEW 37TH ANNUAL REPORT JANUARY 1996 **

 U.S. Advisory Commission on Intergovernmental Relations800 K Street, NWSuite 450, South BuildingWashington, DC 20575

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## 1995 ACIR HIGHLIGHTS 

 The U.S. Advisory Commission on Intergovernmental Relations(ACIR) met five times in 1995 to recommend improvements infederal-state-local relationships. 

### January 13 

 The Commission: 

- Adopted the "Resolution on Strengthening the        Intergovernmental Partnership" in response to        proposed changes resulting from the November 1994        national election. 
- Adopted a report and recommendations on reforming        unfunded federal mandates. 
- Considered a new ACIR "Issue Brief" on Medicaid        and AFDC funding to the states. 
- Authorized publication of an Information Report on state        tax and expenditure limits on local governments. 

### March 24 

 The Commission: 

- Approved a work program to prepare four studies required        of ACIR by the  Unfunded Mandates Reform Act of 1995 .    
- Authorized appointment of a Federalism Committee to help        provide guidance to the Congress and the Administration        for considering short-term and long-term changes in the        federal system. 
- Adopted a report and recommendations on strengthening the        capacity of metropolitan planning organizations (MPOs) to        perform the planning and other functions required by the  Intermodal        Surface Transportation Efficiency Act of 1991         (ISTEA). 

### June 28 

 The Commission: 

- Adopted criteria for use by the Commission in reviewing        and making recommendations on existing federal mandates,        as required by the  Unfunded Mandates Reform Act of        1995 . 
- Authorized transmittal to the President and the Congress        (and publication) of the first mandates study required of        ACIR by the  Unfunded Mandates Reform Act of 1995 --cataloguing        all federal court decisions issued in 1994 involving        cases brought against state, local, and tribal        governments under federal law or the U.S. Constitution. 
- Adopted an increased schedule of voluntary financial        contributions to ACIR to be requested of the states in        future years. 
- Authorized the staff to prepare two new studies, using        funding from the Federal Highway Administration: (1)        performance-based management practices for improving        intergovernmental service delivery in public works        programs, and (2) integration and streamlining of        multiple federal requirements for metropolitan        transportation planning. 

### September 15 

 The Commission: 

- Approved a strategy for requesting an FY 1997 federal        appropriation, supplementing the Commission's        appropriation with other sources of funding, and        repositioning the Commission's structure and program for        survival in the new national political environment. 
- Considered preliminary staff findings about high priority        existing federal mandates identified by state and local        officials, provided guidance to staff for completing the        preliminary report, and authorized preparation for a        national conference in early Spring 1996 to seek greater        involvement in mandates and other federalism issues. 
- Authorized the staff to prepare a study of        intergovernmental relationships in wetlands preservation        programs, using Corps of Engineers' financing 

### December 19 

 The Commission: 

- Approved the preliminary report and proposed        recommendations on  The Role of        Federal Mandates in Intergovernmental Relations , and        authorized the report to be published for public review        and comment. 
- Considered, but did not complete action on (1) a position        regarding the proposed  Local Flexibility and        Empowerment Act  (S. 88), and (2) the draft policy        report on performance-based management practices to        improve intergovernmental service delivery in public        works programs. To promote intergovernmental dialogues,        Commission members and staff spoke or testified to the        Congress on 8 occasions, presented 45 speeches, and        authored 7 outside publications. 

### The Commission's 1995 achievements are highlighted under thefollowing four headings: 

- Strengthening the Federal System 
- Managing Federal Aid  
- Balancing Public Finances , and 
- Promoting Democracy Abroad 

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### Strengthening the Federal System

#### Refocusing 

 At its first meeting in 1995 (January 13), the Commissionpassed a resolution: 

- recognizing the "unprecedented opportunity" for        intergovernmental reforms occasioned by the change of        party control in the Congress, and other factors; 
- urging all the partners in the federal system to        "seize this unprecedented opportunity to achieve        better balance of responsibilities and resources among        federal, state, and local governments, and strengthen the        intergovernmental partnership" with actions on        federal mandate relief, safeguards and assurances against        shifting federal responsibilities to state and local        governments without their consent, reforming the federal        grant system, maximizing essential federal field services        to state and local governments, and exempting state and        local officials from the Federal Advisory Committee Act;        and 
- committing the Commission to assisting the Congress and        the President in achieving these goals. 

#### Federal Mandate Reform 

 The Commission adopted a series of recommendations in Januaryto guide the Congress in enacting mandate relief legislation. TheCongress passed legislation consistent with the ACIRrecommendations. This legislation assigned to ACIR thepreparation of four studies including a review of existingfederal mandates, and a report on judicially created federalmandates. 

- The first annual judicial mandates report,  Federal        Court Rulings Involving State, Local, and Tribal        Governments: Calendar Year 1994 , was published in        July 1995. It found more than 3,500 opinions on issues        raised under more than 100 federal laws. 
- The preliminary review of existing federal mandates was        prepared during 1995, and approved by the Commission for        public review and comment in early 1996. ( The Role of Federal Mandates in        Intergovernmental Relations : A Preliminary ACIR        Report for Public Review and Comment , January 1996.)        This report includes proposed recommendations for        exempting state and local governments from seven mandates        and modifying the effects of seven other federal mandates        on state and local governments. 

#### Water Resources Studies 

 The Commission completed its assignment of facilitatingstakeholder meetings in the ACT-ACF river basins of Alabama,Florida, and Georgia to help the three states and the federalgovernment settle a serious interstate dispute over the use ofwater in these six interrelated river basins. ACIR began a studyof intergovernmental institutions that could be used to plan andimplement wetlands preservation, restoration, construction, andmaintenance programs on a watershed basis.

#### Supporting State ACIR's 

 The Commission continued its support and encouragement forstate ACIR's. 

### Managing Federal Aid

 The Commission continued its long-standing studies in thefederal aid field by publishing four new reports and starting twoadditional studies, as follows: 

- Characteristics of Grants.  
- Characteristics of Federal Grant-in-Aid Programs to State        and Local Governments: Grants Funded FY 1995 (June 1995),        provides the only complete profile of the federal grant        system. Federal Grant Profile, 1995: A Report on ACIR's        Federal Grant Fragmentation Index (September 1995),        provides the third calculation of an index which points        to potentials for program consolidations. Block Grants,        Federal Aid, and Deficit Reduction, Issue Brief 95-2        (July 1995) provides a "quick-study" aid for        persons involved in designing or evaluating block grant        proposals.  
- Metropolitan Planning Requirements.  
- MPO Capacity: Improving the Capacity of Metropolitan        Planning Organizations to Help Implement National        Transportation Policies (May 1995), a policy report        containing six recommendations for federal, state and        local capacity-building support for MPOs. A study of the        potentials for integrating the large number of federal        planning regulations and MPO practices into a more        coherent and effective, but simpler and more efficient,        planning process (to be completed in 1996).  
- Benchmarking.  
- A study to assess the potential of outcome-oriented        performance management processes to improve the delivery        of intergovernmental programs (to be completed in 1996).  

### Balancing Public Finances

 ACIR has recommended ways to promote intergovernmental fiscalfairness over the past 37 years. In 1995, the Commission made thefollowing three new contributions to this search.

- Significant Features of Fiscal Federalism.  
- The Commission published Volume 1 of its annual        two-volume Significant Features of Fiscal Federalism        (September 1995). It contains descriptions of the budget        processes of the federal government and each of the 50        states, as well as descriptions of each federal, state,        and local tax levied and its rates. Volume 2, which        contains intergovernmental revenue and expenditure        tables, was delayed because of delays in receiving data        from the sources ACIR uses to compile the tables.  
- Tax and Expenditure Limits on Local Governments.  
- This special information report was compiled at the        Center for Urban Policy and the Environment, Indiana        University, and was published by ACIR (March 1995). It        describes the wide variety of limitations placed on local        government finances by state governments, and gives the        dates when the various states imposed each of these        limits.  
- Medicaid, AFDC, and State Budgets.  
- This Issue Brief (95-I) shows the effects on the budgets        of each of the 50 states of federal payments for the        Medicaid and AFDC programs, and potential effects of        capping these entitlement programs. 

### Promoting Democracy Abroad 

**Briefings**

- ACIR continued to provide selective briefings for foreign        visitors seeking to learn about American federalism.  

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## GENERALINFORMATION 

### The U.S. Advisory Commission on Intergovernmental Relations(ACIR) plays a unique role in: 

- Monitoring the federal system; 
- Identifying problems and highlighting emerging issues;        and 
- Regularly convening federal, state, and local government        officials to consider means of making the system work        better.

ACIR has continued this role for more than three decades,working closely with federal, state, and local governmentofficials to identify ways in which it can help the President andthe Congress improve the effectiveness of the federal system,develop solutions to intergovernmental problems, and bring abouta better balance between the states and the federal government.

 ACIR continues also to highlight the growing importance ofstate-local relations and works cooperatively with its 23state-ACIR counterparts.

 This annual report describes how the Commission isconstituted and conducts its research, how it advises on policymatters, and how it disseminated information during 1995. 

## Budget andPerformance For FY 1996, 

 ACIR's appropriation is $784,000 ($216,000 less than in FY1995). Actual salaries and expenses for FY 1995 are shown inAppendix A.

 ACIR continued to rely on outside revenue sources duringcalendar year 1995. These included state contributions, researchcontracts with federal agencies, publication sales, andhonoraria. ACIR's financial support is summarized in Appendix B.

 The FY 1996 appropriation act for ACIR provides fortermination of the Commission's activities.

 Appendix C provides historical graphs of ACIR's annualproduct production, revenues, personnel, offices space, andwarehouse space.

## ACIR:Purpose and Composition 

### Purpose 

 ACIR is a permanent, independent, bipartisan Commission,established by P.L. 86-380, September 24, 1959, amended by P.L.89-733, November 2, 1966. The statutory purposes of theCommission are to: 

- Bring together representatives of the federal, state, and        local governments for the consideration of common        problems; 
- Provide a forum for discussing the administration and        coordination of federal grants and other programs        requiring intergovernmental cooperation; 
- Give critical attention to the conditions and controls        involved in the administration of federal grant programs;    
- Make available technical assistance to the executive and        legislative branches of the federal government in review        of proposed legislation to determine its overall effects        on the federal system; 
- Encourage discussion and study at an early stage of        emerging public problems that are likely to require        intergovernmental attention; 
- Recommend, within the framework of the Constitution, the        most desirable allocation of government functions,        responsibilities and revenues among the several levels of        government; 
- 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 on        compliance for taxpayers.   

### Composition 

 The Commission is composed of 26 members: 

- Three private citizens , appointed by the President        without regard to political affiliation; 
- Three members of the Federal Executive Branch ,        appointed by the President without regard to political        affiliation; 
- Three members of the United States Senate ,        appointed by the presiding officer of the Senate on a        bipartisan basis; 
- Three members of the House of Representatives ,        appointed by the Speaker of the House on a bipartisan        basis; 
- Four Governors of states , appointed by the        President on a bipartisan basis from nominations by the        National Governors' Association; 
- Three state legislators , appointed by the        President on a bipartisan basis from nominations by the        National Conference of State Legislatures and the Council        of State Governments; 
- Four city mayors , appointed by the President on a        bipartisan basis from nominations by the National League        of Cities and the U.S. Conference of Mayors; and 
- Three elected county officials , appointed by the        President on a bipartisan basis from nominations by the        National Association of Counties.The members of the        Commission serve two-year terms and may be reappointed.        The Chairman and the Vice Chairman of the Commission are        designated by the President from among the membership.        The Commission usually meets quarterly, but may meet more        or less frequently as necessary. See Appendix D for a        list of members, and Appendix E for a list of the        Commission's 1995 meetings. 

### ACIR:Operating Procedures 

 Because of its broad representation, the Commission is ableto develop consistent, long-term analyses and recommendationsthat reflect the diversity of the federal system as well aspoints of similarity and consensus. The principal work of theCommission flows through three stages: 

- Research undertaken at the direction of the Commission; 
- Policy recommendations made by the Commission; and 
- Communication of these policy recommendations to the        relevant federal, state, and local officials, as well as        to the public. 

 The Commission determines its own agenda, basing its choiceson: 

- The members' wide-ranging experiences, observations, and        contacts within the federal system; 
- Suggestions from public officials, citizen groups, and        others; and 
- Staff evaluations of current and latent issues in        intergovernmental relations. 

 Occasionally, the Congress, the President, federal agencies,and state and local governments request that ACIR preparespecific studies. In 1995, the Unfunded Mandate Reform Actrequested the Commission to prepare four studies:

- A review of existing federal mandates with        recommendations for termination, revision, or        continuation; 
- A review of state mandates; 
- Annual reports on judicially created federal mandates;        and 
- Methods of calculating the costs and benefits of federal        mandates. 

 Once a topic is selected for research, the staff andconsultants, if any, gather information by a variety of methods.These include literature reviews; consultations with relevantpublic officials and other experts; holding hearings, ifnecessary; and carrying out field studies. The purpose of thisresearch is to provide a solid foundation for Commission policyrecommendations. 

 The staff conducts a "thinkers' session" at thebeginning of each research project to help define the scope andapproach, and to identify other relevant research on the topic.Near the completion of a project, a "critics' session"is convened to critique the draft report and policyrecommendations prepared for Commission consideration.Participants in these sessions usually include Congressionalstaff members; representatives of appropriate government agenciesand public interest groups; members of the academic community;subject specialists; and representatives of civic, labor,research, and business organizations. 

*In 1995, the Commission held 3 thinker's sessions and 9critics sessions.*

 Background information and findings are presented to theCommission, along with an appropriate range of policyalternatives. The Commission debates reports in public sessionsand votes on policy recommendations. Subsequently, the reportsand recommendations are published and disseminated. 

 The Commission also issues many information reports that donot contain policy recommendations, an annual public opinionsurvey, and occasional staff reports that do not requireCommission approval. 

 A list of ACIR reports issued during 1995 is provided inAppendix F. 

 In addition to preparing and publishing reports, theCommission holds public hearings, organizes conferences on keyintergovernmental issues, provides speakers for public andacademic meetings, and supplies direct assistance and informationto individual agencies, public officials, and citizens. 

*Staff and Commission members testified to Congress 8times, made 45 speeches, and authored 7 outside publications in1995.* (See Appendix G.) 

 A staff organization chart is provided in Appendix H.

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## THE ACIRWORK PROGRAM 

 ACIR continues to generate timely policy and informationreports and recommendations that address the majorintergovernmental challenges facing the nation. During calendaryear 1995, the Commission met five times to pursuefederal-state-local dialogues and make recommendations on: 

- Strengthening the Federal System  
- Managing Federal Aid  
- Balancing Public Finances , and 
- Promoting Democracy Abroad 

 The Commission published 2 policy reports, 4 informationreports, 1 staff report, and 5 other documents. A chronologicallist of 1995 publications may be found in Appendix F. As the yearended, several studies remained under way. A summary of the 1995program results follows. 

### Strengthening the Federal System

 ACIR's efforts this year to strengthen the federal systemfocused on the intergovernmental issues raised by the nationalelections in 1994, and concentrated on federal mandate reforms inresponse to the Unfunded Mandate Reform Act of 1995. TheCommission also continued important work on intergovernmentalwater resources issues and support for state ACIR's. ACIR'scontributions in 1995 were: 

#### Refocusing 

 At its first meeting in 1995 (January 13), the Commissionpassed a resolution: 

- recognizing the "unprecedented opportunity" for        intergovernmental reforms occasioned by the change of        party control in the Congress, the new legislative agenda        set by the Contract with America, the large number of        performance partnerships proposed by the Administration        in the Fiscal Year 1996 Budget, and the strong        constitutional and legislative initiatives being        supported by the state and local governments; 
- urging all the partners in the federal system to        "seize this unprecedented opportunity to achieve        better balance of responsibilities and resources among        federal, state, and local governments, and strengthen the        intergovernmental partnership" by:    - enacting federal mandate relief legislation                (which has since been done); 
  - including safeguards and assurances that federal                responsibilities will not be shifted to state and                local governments without their consent in any                Constitutional balanced budget amendment that                might be enacted; 
  - reforming the federal grant system to achieve                greater simplification, accountability, and                flexibility by establishing new block grants and                assigning them to the proper level of government;            
  - maximizing the delivery of essential field                services to state and local governments to                maintain a strong and healthy intergovernmental                partnership; and 
  - amending the  Federal Advisory Committee Act                 (FACA) to exempt state and local officials so                that they can consult freely with federal                agencies (since enacted, in part, in the  Unfunded                Mandate Reform Act of 1995 ). 
- committing the Commission to assisting the Congress and        the President in achieving these goals. 

#### Federal Mandate Reform 

 The project begun last year (with the help of funding fromthe Department of Housing and Urban Development and two broadlyrepresentative intergovernmental task forces) to establishprinciples and guidelines for enacting mandate reformlegislation, was completed. The Commission adopted a series ofrecommendations in January to guide the Congress, and publishedthe report, Federal Mandate Relief for State, Local, andTribal Governments (January 1995). 

 The Congress passed mandate reform legislation consistentwith the ACIR recommendations, and the President signed it onMarch 22, 1995. This legislation, the Unfunded Mandate ReformAct of 1995, assigned to ACIR the preparation of fourstudies: 

- a review of existing federal mandates, 
- a review of state mandates, 
- annual reports on judicially created federal mandates,        and 
- a study of methods for calculating the costs and benefits        of federal mandates. 

 The first annual judicial mandates report, Federal CourtRulings Involving State, Local, and Tribal Governments: CalendarYear 1994, was published in July 1995. It found more than3,500 opinions on issues raised under more than 100 federal laws.The report presents a frequency table showing which federal lawsspawned the most cases, and summarizes the opinions in 140 of thecases. Individual rights acts were the basis of most of the casesdecided in 1994. 

 The preliminary review of existing federal mandates wasprepared during 1995, and approved by the Commission for publicreview and comment in early 1996. (The Role of FederalMandates in Intergovernmental Relations: A Preliminary ACIRReport for Public Review and Comment, January 1996.) 

 Of the more than 200 existing federal mandates identified bystate and local governments as being burdensome, ACIR'spreliminary report proposes recommendations on the 14 most oftenmentioned ones. These draft recommendations would make sevenmandates no longer applicable to state and local governments,would retain three others in a modified form, and would providefor greater flexibility and increased state and localconsultations in the administration of four others. 

 After the public review and comment period, the report willbe adopted, transmitted to the President and the Congress, andpublished. 

 Studies of state mandates and benefit/cost methodologies areawaiting funding that was authorized but not appropriated.****

#### Water Resources Studies 

 With funding from the U.S. Army Corps of Engineers, theCommission continued facilitating stakeholder meetings in theACT-ACF river basins of Alabama, Florida, and Georgia to help thethree states and the federal government settle a seriousinterstate dispute over the use of water in these sixinterrelated river basins. Although a final settlement was notreached in 1995, ACIR completed its part in the process. 

 ACIR plans to publish an inventory of interstate river basincoordination mechanisms prepared during the ACT-ACF process, sothat it can be available to contending parties in other riverbasins. 

 In the Fall of 1995, ACIR accepted additional funding fromthe U.S. Army Corps of Engineers to study and makerecommendations about potential intergovernmental institutionsthat could be used to plan and implement wetlands preservation,restoration, construction, and maintenance programs on awatershed basis. Work was begun on this project in 1995, and isexpected to be completed in 1996.****

#### Supporting State ACIR's 

 The Commission continued its support and encouragement forstate ACIR's by exchanging publications and meeting agendas withthem, and by: 

- supplying information to the Indiana legislature that        assisted in converting the state's ACIR from a        limited-membership body established by Executive Order to        a more fully representative Commission established by        legislation; 
- advising the Connecticut ACIR staff on research resources        available for a study of central city/suburban fiscal        disparities and equalization issues; and 
- advising the South Carolina ACIR on potential consultants        to prepare public works and economic development studies        for the state. 

## Managing Federal Aid

 The Commission continued its long-standing studies in thefederal aid field by publishing four new reports and starting twoadditional studies, as follows. 

#### The Characteristics of Federal Grant Programs 

 ACIR is the only organization in the nation that regularlytracks the characteristics of all the federal grant programs asthey change over the years. In 1995, the Commission publishedthree new reports on this topic: 

- Characteristics of Federal Grant-in-Aid Programs to        State and Local Governments: Grants Funded FY 1995         (June 1995). This is the only authoritative source of        information about federal grant programs that compiles,        in convenient form, the types of programs, eligible        recipients, formula factors, matching shares, and        administering agencies, and makes comparisons with        previous years. 
- The third calculation of ACIR's federal grant        fragmentation index,  Federal Grant Profile, 1995: A        Report on ACIR's Federal Grant Fragmentation Index         (September 1995). This index, previously calculated for        1981 and 1993, clusters federal programs by functional        groups and shows which groups consist of larger numbers        of smaller programs, compared to other groups with        smaller numbers of larger programs. This is a rough        measure of the relative amounts of administrative        overhead and managerial complexity in these program        clusters, and points to potentials for program        consolidations. 
- Block Grants, Federal Aid, and Deficit Reduction ,        Issue Brief 95-2, July 1995. This four-page document is        intended as a "quick-study" aid for persons        involved in designing or evaluating block grant and        performance partnership proposals, or other grant        consolidation proposals, in light of the lessons learned        since the first block grant was enacted in 1965. 

#### Metropolitan Planning Requirements 

 With funding from the Federal Highway Administration (FHWA),the Commission completed a project begun in 1994, and adopted andpublished the resulting policy report, MPO Capacity: Improvingthe Capacity of Metropolitan Planning Organizations to HelpImplement National Transportation Policies (May 1995). Thereport--based on ACIR field work in 12 metropolitanareas--contains six recommendations for federal, state and localcapacity-building support for MPOs. As a continuation of thiseffort, FHWA funded ACIR in 1995 to study the potentials forintegrating the large number of federal planning regulations andMPO practices into a more coherent and effective, but simpler andmore efficient, planning process attuned to the many innovationsin the Intermodal Surface Transportation Efficiency Act of1991 (ISTEA). This project will be completed in 1996. 

#### Benchmarking Intergovernmental Service Delivery 

 Responding to a recommendation of the National PerformanceReview (with financial assistance from FHWA), the Commissionbegan a study to assess the potential of outcome-orientedperformance management processes to improve the delivery ofintergovernmental programs. To keep the study manageable, ACIRnarrowed its scope to public works programs. The study evaluatesthe strategic planning, performance goal-setting, and performancemeasurement practices of selected federal, state, and localpublic works agencies. A draft policy report was considered bythe Commission in December 1995, and is expected to be completed,adopted, and published in 1996. 

## Balancing Public Finances

 ACIR has played a significant role in recommending ways topromote intergovernmental fiscal fairness over the past 36 years.As the economic and political restrictions on budgets at alllevels of government mount, it becomes increasingly important tosearch for new methods of balancing public finances. In 1995, theCommission made the following three new contributions to thissearch.****

#### Significant Features of Fiscal Federalism 

 The Commission published Volume 1 of its annual two-volume SignificantFeatures of Fiscal Federalism (September 1995). This volumecontains descriptions of the budget processes of the federalgovernment and each of the 50 states, as well as each of thefederal, state, and local taxes levied and their rates. Volume 2,which contains intergovernmental revenue and expenditure tables,was delayed because of delays in receiving data from the sourcesACIR uses to compile the tables. 

#### Tax and Expenditure Limits on Local Governments 

 This special information report was compiled at the Centerfor Urban Policy and the Environment, Indiana University, and waspublished by ACIR (March 1995). It describes the wide variety oflimitations placed on local government finances by stategovernments, and gives the dates when the various states imposedeach of these limits. 

#### Medicaid, AFDC, and State Budgets 

 This Issue Brief (95-1) shows the effects on thebudgets of each of the 50 states of federal payments for theMedicaid and AFDC programs, and explores the potential effects onthe states of capping these open ended entitlement programs. 

## Promoting Democracy Abroad

 ACIR continued to provide selective briefings for foreignvisitors seeking to learn about American federalism. Briefings in1995 were held for visitors from Brazil, Canada, China, CzechRepublic, Hungary, Japan, Netherlands, Poland, Russia, SlovakRepublic, and South Africa.

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## OUTSIDEINCOME 

 In addition to its Congressional appropriation, ACIR raisesrevenue from state contributions, publication sales, and contractresearch. 

### StateContributions 

 During FY 1995, ACIR received $182,044 from 27 states. ACIRhas requested contributions from the states since the early 1970sand is permitted to keep the revenue in a special account. Annualrequests are based on state population and ranged from $5,000 to$13,000 for many years. In 1995, the Commission authorized anincrease in the range to $5,500 - $27,000, to be phased in over athree-year period. 

 A monitoring system tracks the inclusion of ACIR'scontribution requests in state executive budgets and legislativeappropriation bills, identifies key state contacts during thestate budget and appropriation processes, and coordinates theissuance of ACIR invoices with state payment cycles. 

### PublicationSales 

 ACIR continues to generate income from publication sales. InFY 1995, income was $32,112. Several methods are used to promotesales of ACIR publications: 

- Catalogues list all available ACIR publications and        disks. These catalogues are used both for displays at        meetings and for general mailings. 
- Brochures on individual products are mailed to those with        an active interest in the product. 
- Special mailings are sent periodically to selected groups        of individuals who may be a potential market for some of        the publications. 
- Constituent mailings announce publications to groups with        continuing interest in the work of ACIR. These groups        include: media outlets and periodicals of special        organizations, state ACIR's, state municipal leagues and        associations of counties, state legislative reference        libraries, and contributors. 
- ACIR's  Intergovernmental Perspective  magazine, is        sent free to approximately 18,000 individuals to promote        ACIR publications, in both advertisements and feature        articles. 
- ACIR displays its products at meetings and conferences.        Often, this takes the form of full displays of targeted        publications. 
- Press releases announce ACIR recommendations and the        publication of selected reports. Press briefings are held        for selected policy reports. 
- Complimentary copies of ACIR publications are sent to        periodicals for review. 
- ACIR offers a subscription package that includes all        publications. 
- The Commission is active with a variety of groups across        the country through speaking engagements that promote        ACIR and its publications (see Appendix G). Occasionally,        these bring in honoraria to supplement the ACIR budget. 

### ContractResearch 

 Contract Research is discussed throughout this report and,therefore, will be summarized only briefly here. 

- $45,000 from the U.S. Army Corps of Engineers for        development of coordinating mechanisms for the        Alabama-Coosa-Tallapoosa and        Apalachicola-Chattahoochee-Flint River Basins. 
- $200,000 from the Department of Housing and Urban        Development for a report on federal mandates. 
- $30,000 from the U.S. Army Corps of Engineers to help        support implementation of the Federal Infrastructure        Strategy. 
- $150,000 from the Federal Highway Administration for a        12-month study of the capacity of federally required        Metropolitan Planning Organizations (MPOs) to perform the        functions required by the  Intermodal Surface        Transportation Efficiency Act  of 1991 (ISTEA). 
- $20,000 from the Truman Foundation for administrative        services. 
- $3,000 for the Eisenhower Exchange Fellowship, Inc. for        administrative services. 
- $50,000 from the Federal Highway Administration to study        public works "Benchmarking" practices. 
- $200,000 from the Federal Highway Administration to study        potentials for integrating and simplifying the        federal-aid planning required to be performed by        metropolitan planning organizations (MPO's). 
- $90,000 from the U.S. Army Corps of Engineers to study        intergovernmental institutions with the potential to plan        and implement wetlands preservation programs on a        watershed basis.       

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## Appendix A: Salaries and Expenses

(in thousands, from appropriated funds and offsettingcollections)

```
**FY 1995					Actual**Personnel Compensation			384Civilian Personnel Benefits		96Rental Payments to GSA			203Other Services				245Supplies and Materials			11Printing and Reproduction		58Sub-Total, Direct Obligations		997Sub-Total, Reimbursable Obligations	416**Total Obligations			1,413**
```

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## Appendix B: FINANCIAL SUPPORT 

### ACIR's FY 1995 Budget 

 ACIR's appropriation for FY 1996 is $784,000. This is$216,000 less than in FY 1995. 

### Product Sales and State Contributions 

 ACIR has made a major effort to increase revenues fromproduct sales and state contributions. State contributions aredown slightly from FY 1994. Increases in revenue from this sourcewill continue to be sought by the Commission, although solicitingstate contributions is a difficult and time-consuming process. 

### Space Cost Reduction Measures 

 During the past eight years, ACIR has regularly reduced itsrental space and associated charges. However, there are no spacereductions planned in FY 1996. 

### General 

 It is anticipated that ACIR's ability to retain revenues fromthe sale of goods and services will allow the Commission tocontinue operating within OMB's long-range guidelines through FY1996. The Commission, however, is no longer in a position toreduce staff, space, or other aspects of its operations withoutalso reducing productivity significantly. The Commission's36-year record of remaining small and frugal while maintainingits vitality and high productivity continues. The Treasury,Postal Service, and General Government Appropriations Act for FY1996 calls for termination of ACIR.

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## Appendix C: Historical Graphs

### Graph 1: 

### Graph 2 

### Graph 3 

### Graph 4 

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# Appendix D:ACIR MEMBERS, DECEMBER 31, 1995 

**Private Citizens**

- Peter Lucas, Boston, MA 
- Richard P. Nathan, Albany, NY 
- William F. Winter, CHAIRMAN, Jackson, MS 

**Members of the United States Senate**

- Bob Graham, Florida 
- Dirk Kempthorne, Idaho 
- Craig Thomas, Wyoming 

**Members of the U.S. House of Representatives**

- James P. Moran, Virginia 
- Donald M. Payne, New Jersey 
- (Vacancy) 

**Officers of the Executive Branch, Federal Government**

- Carol M. Browner, Administrator, U.S. Environmental        Protection Agency 
- Marcia L. Hale, Assistant to the President and Director        of Intergovernmental Affairs 
- Richard W. Riley, Secretary, U.S. Department of Education    

**Governors**

- Arne H. Carlson, Minnesota 
- Howard Dean, Vermont 
- Michael O. Leavitt, Utah 
- Bob Miller, Nevada 

**Mayors**

- Victor H. Ashe, Knoxville, TN 
- Gregory Lashutka, Columbus, OH 
- Edward G. Rendell, Philadelphia, PA 
- Bruce M. Todd, Austin, TX 

**State Legislators**

- Paul Bud Burke, President, Kansas Senate 
- Art Hamilton, Minority Leader, Arizona House of        Representatives 
- Samuel B. Nunez, Jr., President, Louisiana Senate 

**Elected County Officials**

- Randall Franke. Commissioner, Marion County, OR 
- Gloria Molina, Supervisor, Los Angeles County, CAJohn H.        Stroger, Jr., Commission President, Cook County, IL 

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# Appendix E:COMMISSION MEETINGS: 1995 

```
**Date:			Place:**January 13		Washington, DCMarch 24		Washington, DCJune 28			Washington, DCSeptember 15		Washington, DCDecember 19		Washington, DC
```

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# Appendix F:ACIR PUBLICATIONS ISSUED IN 1995 

### Policy Reports: 

- A-129 
- Federal Mandate Relief for State, Local, and Tribal        Governments 
- A-130 
- MPO Capacity: Improving the Capacity of Metropolitan        Planning Organizations to Help Implement National        Transportation Policies 

### Information Reports: 

- M-194 
- Tax and Expenditure Limits on Local Governments 
- M-195 
- Characteristics of Federal Grant-in-Aid Programs to        State, and Local Governments: Grants Funded in FY 1995 
- M-196 
- Federal Court Rulings Involving State, Local, and Tribal        Governments: Calendar Year 1994 
- M197-I 
- Significant Features of Fiscal Federalism: Budget        Processes and Tax Systems 1995, Vol. 1 

### Other Documents: 

- 
- Resolution on Strengthening the Intergovernmental        Partnership 
- SR-20 
- Federal Grant Profile 1995: A Report on ACIR's Federal        Grant Fragmentation Index 
- 95-1 
- Medicaid, AFDC, and State Budgets: Issue Brief 
- 95-2 
- Block Grant, Federal Aid, and Deficit Reduction: Issue        Brief Federal Register Notice on Proposed Mandate Relief        Criteria Federal Register Notice on Adopted Mandate        Relief Criteria 

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# Appendix G: TESTIMONY, SPEAKINGENGAGEMENTS, ANDEXTERNAL PUBLICATIONS 

## TESTIMONY 

- March 1, 1995 
- Testimony of Chairman William Winter and William E. Davis        beforethe House Appropriations Subcommittee on Treasury,        Postal Service, and General Government. 
- April 27, 1995 
- Testimony of Dr. Richard P. Nathan before the Senate        Finance Committee on an Alternative to the House-passed        Welfare Reform Bill. 
- June 7, 1995 
- Testimony of William E. Davis before the Senate Committee        on Governmental Affairs on Duplication, Overlap, and        Fragmentation in Federal programs. 
- June 29, 1995 
- Mayor Rendell testified on  Federal Capital Budgeting         for the House Committee on Government Reform and        Oversight. 
- July 20, 1995 
- Dr. Richard P. Nathan testified on  Block Grants Should        We or Shouldn't We?  for the House Subcommittee on        Human Resources and Intergovernmental Relations. 
- July 27, 1995 
- Phillip Dearborn testified on  Municipal Bankruptcy in        Orange County , for the House Committee on Banking and        Financial Services. 
- August 3, 1995 
- Charles Griffiths testified on the Local Empowerment and        Flexibility Act for the House Subcommittee on Human        Resources and Intergovernmental Relations. 
- December 5, 1995 
- Charles Griffiths testified on the  Local Empowerment        and Flexibility Act  (S88) for the Senate Governmental        Affairs Committee. 

### SPEAKING ENGAGEMENTS 

- January 7, 1995 
- Philip Dearborn, NCSL Fiscal Chairs        Conference,"Reinventing State-Local Government        Relations," Denver, Colorado. 
- January 19, 1995 
- Bruce D. McDowell, "NPR Goals for        Infrastructure," Federal Facilities Council,        Washington, DC. 
- January 23,1995 
- Philip Dearborn, Federal City Council, Washington, DC,        "Resolving Urban Fiscal Crises." 
- January 24, 1995 
- Bruce D. McDowell, "Federal Capital Budgeting for        Infrastructure," ISTEA Reauthorization Task Force,        American Road and Transportation Builders Association. 
- January 27, 1995 
- Bruce D. McDowell, "MPO Capacity," annual        meeting of the Intergovernmental Relations and Policy        Process Committee, Transportation Research Board,        Washington, DC. 
- February 4, 
- Bruce D. McDowell, "MPO Capacity," Association        of Metropolitan Planning Organizations, Washington, DC. 
- February 20, 
- Bruce D. McDowell, "The Unfunded Mandate Reform Act        of 1995," Florida ACIR Workshop on Federal Mandates,        Tallahassee, FL 
- March 6, 1995 
- William E. Davis, NACo meeting, Presentation to Board -        Washington, DC 
- March 9, 1995 
- Bruce D. McDowell, "The Unfunded Mandate Reform Act        of 1995," Environmental Task Force, ICMA,        Washington, DC 
- March 30, 1995 
- Bruce D. McDowell, Joint Annual Conference of theAmerican        Planning Association and the Canadian Institute of        Planners, "Trends in U.S. Infrastructure        Policy." 
- April 10, 1995 
- Bruce D. McDowell, Joint Meeting of the National Rural        Development Partnership and the EPA Small Towns Task        Force, "Mandate Legislation: Opportunities for        Linkage," Washington, DC 
- April 21, 1995 
- William E. Davis, Southern Municipal Conference's Eighth        Annual Leadership Conference, "The Unfunded Mandates        Reform Act of 1995," Lexington, KY 
- April 21, 1995 
- Bruce D. McDowell, 1995 International Symposium on Public        Works and the Human Environment, "Environmental        Perils and Opportunities in Reinventing Government,"        Seattle, WA 
- April 25, 1995 
- William E. Davis, Southern State Treasurers Conference,        "Federal Mandates on State and Local        Governments," Natchez, MS 
- April 25, 1995 
- Bruce D. McDowell, Federal Highway Administration,        Capital Budgeting Seminar, "Capital Budgeting and        the Search for Federal Budget Discipline,"        Washington, DC 
- April 26, 1995 
- Bruce D. McDowell, Annual Conference of the American        Association for Budget and Program Analysis, "The        Impact of Mandates on Budgets," Washington, DC 
- April 29, 1995 
- Bruce D. McDowell, The Robert M. LaFollette Institute of        Public Affairs, "Mandates: The Federal View,"        Madison, WI 
- May 8, 1995 
- William E. Davis, State Commission for Public Service of        the Peoples Republic of China, "The Informal        Intergovernmental System in American Government,"        Washington, DC 
- May 11, 1995 
- Bruce D. McDowell, NACo Intergovernmental Relations        Steering Committee, "Trends and Issues in        Intergovernmental Relations," Washington, DC 
- May 12, 1995 
- Philip Dearborn, Urban Land Institute, "The Outlook        from Washington for State and Local Governments,"        San Antonio, TX 
- May 22, 1995 
- Bruce D. McDowell, TRB Conference on Institutional        Aspects of Metropolitan Transportation Planning,        "Building Up MPO Capacity," Williamsburg, VA. 
- June 10, 1995 
- William E. Davis, National Academy of Public        Administration Spring Meeting on Federalism, panelist on        "The New Intergovernmental Partnership: Implications        for the Future," Savannah, GA 
- June 26, 1995 
- Richard P. Nathan, "Block Grants - Key to the        'New(t)' Federalism," Sar Levitan Center, Johns        Hopkins University, Baltimore, MD 
- July 11, 1995 
- Philip Dearborn, "Outlook from Washington,"        Mid-Ohio Regional Planning Commission, Columbus, OH. 
- July 18, 1995 
- Richard P. Nathan, "The Double Conundrum of Block        Grants," National Conference of State Legislatures,        Milwaukee, WI 
- July 19, 1995 
- Chuck Griffiths participated in panels on Federal reforms        and judicial mandates, National Conference of State        Legislatures, Milwaukee, WI 
- July 20, 1995 
- Bruce D. McDowell, "How Should MPOs Measure Success        in Reaching ISTEA Goals?" Annual Conference of the        National Association of Metropolitan Planning        Organizations, Pittsburgh, PA 
- July 25, 1995 
- Governor William Winter, "The Devolution Revolution:        The Current State of Federalism" panel, American        Society of Public Administration National Conference. 
- July 26, 1995 
- Bruce D. McDowell, "Do MPO's Have the Capacity to        Meet the Requirements of ISTEA?" Annual Conference        of the Michigan 3-C Transportation Planning Directors'        Association, Grand Rapids, MI 
- August 7, 1995 
- Philip Dearborn, "Outlook from Washington,"        Governmental Research Association, New Orleans, LA 
- August 24, 1995 
- Philip Dearborn, "State Tax and Expenditure        Limitations," and "Implementation of Mandates        Act," National Conference of State Legislatures        Senior Fiscal Analyst Seminar, Burlington, VT, August        24-25, 1995. 
- August 29, 1995 
- Richard P. Nathan presented testimony on the Fleet Bank        to the Federal Reserve Board in Albany, NY. 
- September 19, 1995 
- William E. Davis, "Relief From Existing Federal        Mandates," presentation to the 95th Annual        Conference of the Indiana Association of Cities and        Towns, South Bend, IN 
- September 25, 1995 
- Philip Dearborn, "Tax and Expenditure Limits,"        presentation to the South Dakota Association of Counties,        Rapid City, SD 
- October 3, 1995 
- Bruce D. McDowell, "MPO Capacity," presentation        to the Region IX Intermodal Planning Group Annual        Conference, Las Vegas, NV 
- October 10, 1995 
- Philip Dearborn, "Federal Mandates in the New        Federal System," National Tax Systems, San Diego, CA    
- October 12, 1995 
- William F. Winter, "ACIR's Work on Unfunded        Mandates," presentation to the Association of County        Commissioners of Georgia/Fall Policy Conference. 
- October 13, 1995 
- Bruce D. McDowell, "The ACIR Mandate Studies,"        presentation to the Annual Conference of the Budget and        Finance Section of the American Society of Public        Administration, Washington, DC 
- October 14, 1995 
- Philip Dearborn, "User Fees in State and Local        Revenue Systems," American Society for Public        Administration, Washington, DC. 
- October 18, 1995 
- Bruce D. McDowell, "MPO Capacity," presentation        to the Energy and Transportation Committees of the        National Conference of State Legislatures, Atlanta, GA 
- October 20, 1995 
- Bruce D. McDowell moderated a panel on infrastructure        finance at a specialty conference of the Board on        Infrastructure and the Constructed Environment, sponsored        by the National Academy of Sciences, Washington, DC 
- October 27, 1995 
- Richard P. Nathan, "Hard Road Ahead: Block Grants        and the Devolution Revolution," discussion paper        prepared for a Seminar for Journalists at the Brookings        Institution, Washington, DC 
- November 3, 1995 
- William E. Davis, "The National Role in a Federal        System," Johns Hopkins University Center for Study        of American Government, Washington, DC 
- November 21, 1995 
- Charles Griffiths, "The Progress of ACIR's Mandates        Studies," the State of Maryland's Senate Economic        and Environmental Affairs Committee, Annapolis, MD 
- December 4, 1995 
- Bruce D. McDowell, "Regionalism: What It Is, Where        We Are, and Where We May Be Headed," keynote speech,        1995 Annual Conference of the Virginia and National        Capital Area Chapters of the American Planning        Association, Falls Church, VA 

### EXTERNAL PUBLICATIONS 

- Bruce D. McDowell, "Reinventing Planning Under        ISTEA: MPO's and State DOT's," TR News, 175,        November - December 1994, pp. 6-9, 29. 
- Philip Dearborn, "The Municipal Bankruptcy        Dodge," Washington Post, December 27, 1995. 
- Bruce D. McDowell, "Don't Throw Out 'Environmental        Baby' with 'Re-Invention' Bath!," APWA Reporter,        July 1995, pp. 20-21.Bruce D. McDowell (with Robert W.        Gage), "ISTEA and the Role of MPO's in the New        Transportation Environment: A Midterm Assessment,"        Publius, Vol. 25, No. 3, Summer 1995, p. 133-154 
- Bruce D. McDowell, "Comparing Intergovernmental        Relations in Poland and America," Chapter 1 of a        local government training textbook, Reform of Local        Self-Government in Light of American Experiences,        published in Polish (Lodz, Poland: Fundacja Promocji        Czystych Technologii, Techeko, 1995) 
- Bruce D. McDowell, "Contemporary Trends,"        Update on Law-Related Education, Special Issue on        Federalism -- What Is It? Where Might It Take Us? Vol.        19, No. 3, Fall 1995, pp. 12-14. 
- Bruce D. McDowell, "The Interstate Commerce Clause        of the U.S. Constitution: A 200-Year Case Study for        European Integration," Federal-Type Solutions and        European Integration, (Lanham, MD: University Press of        America, 1995), pp. 139-149 

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# Appendix H: Staff Organization Chart 

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