Date: 1981-04-01
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. I thank the Senator. I have listened with interest to his statement. I certainly support the elimination of the State revenuesharing program. but I oppose the elimination of the general revenuesharing local share allocation. While I agree that we must eliminate those programs that have not fulfilled their expected function. and that are not as essential as others. the general revenuesharing programs local share allocation does not fall into either of these categories. Mr. President. I know that the distinguished Senator has stated that he intends to withdraw the amendment and that he can count. that he recognizes the arithmetic of the votes. whether it is by the new math or by the old. But he has made some statements in opposition to the local sharing allocation and I think that some of those of us who are opposed to this amendment. who support local revenue sharing. ought to say on the record what we have on our minds with respect to this program and ought to make a defense of it on the record right now. I do not think we should let the statements by the distinguished Senator from Wisconsin go unchallenged. It is for that reason that I take the floor at this time. I appreciate the fact that he is withholding the withdrawal of the amendment at this point. But even if he did so. there are some of us who would like to speak out on this subject and we intend to do so. The general revenuesharing program began in 1972 under the Nixon administration. It. is based on the concept that the Federal Government is best equipped to collect taxes and redistribute them through a form of entitlement to local governments. Based on a fair and equitable formula. it takes into consideration population. local tax effort. and per capita income. The program was not designed to reward local governments derelict in their duty and it does not work that way. The formula assures that those local governments that try their best to provide adequate services will be assisted by the program. Local revenuesharing funds may be used for any legal purpose under State and local laws. In West Virginia. they are typically used for public facilities such as water and sewer systems. courthouse and municinal office building construction. nursing home construction. construction of lowtomoderate income family housing. and public service employment. Since the programs implementation. almost $42 billion has been allocated to local governments nationally. for such ourposes and some $383 million has been awarded to local governments in West Virginia. From the beginning. the concept was. and remains today. in accord with those aims expressed by the present administration. that more than 39.000 jurisdictions could best make a determination of how to spend their allocated funding. Through the process of local citizenparticipation hearings. local governments learn the needs of the local communities and citizens have an opportunity to influence how those expenditures are to be made. This is a continuation of the concept of local autonomy. Last December the Senate voted overwhelminglyby a vote of 80 to 3to extend the general revenue sharing programs local share allocation at the rate of $4.6 billion per year through 1983. The legislation was subsequently enacted into Public Law 96604. In reliance upon the continuation of this essential programwhich received such broad support in the Senate and in the Congress last yearlocal governments across this Nation have included in their projected budgets for fiscal year 1982 the anticipated allocations from this program. Withdrawal of funding at this crucial time would place their budgets in havoc. and would result in deficitswhich must translate to the loss of essential community programs and servicesfor which there is no available. alternative funding source. Some have argued that the revenue sharing program was adopted as a method of sharing the Federal surplus with State and local governments. In fact. however. the Federal deficit in fiscal year 1973which was the first year that revenuesharing payments were madewas equal to more than 6 percent of total outlays. A deficit amounting to the same percentage of total outlays in fiscal year 1982 would be about $47 billionroughly the amount projected in the administrations budget proposal. This program has consistently enjoyed bipartisan support throughout its existence. It was proposed originally by a Republican President and enacted by a Democratic Congress. President Reagan has unequivocally supported the local share program. It is the only program that provides Federal assistance to virtually every local government in the Nation. Mr. President. the revenuesharing program is a cornerstone of the Federal grantinaid system. In particular the local share program has worked. It has worked well. and it deserves to be retained at the fully funded level. Mr. President. I have yielded such time as I have used from time on the resolution.