    [From the U.S. Government Printing Office, www.gpo.gov]

          State Growth                                                       JUL 19  1976
          Management
          May 1976

          Coastal Zone
          Information
             Center

                                      COASTAL ZONE
                                      INFORMATION CENTER

         HC
         106.7
         .S73
         1976

           State Growth
           Management

           May 1976

           .by:
           The Council of State
           Governments
           Le)dngton, Ky.

           Prepared under the Direction of:
           The Office of Community
           Planning and Devel,opment

           U.S. Department of Housing
           and Urban Devellopment     property of c8c

                                 U . S . DEPARTMENT Of COMMERCE NOAA
                                 COASTAL SERVICES CENTER
                                 2234 SOUTH HOBSON AVENUE
                                 CHARLESTON SC 29405-2413

                                                                                          ?

                              The research and publication of this report were   President's biennial Report on National Growth
                              made possible through a research contract from     and Development, submitted to Congress in
                              the Office of Community Planning and Develop-      February 1976 pursuant to Section 703, Title
                              ment of the U.S. Department of Housing and         Vil of the Housing Act of 1970. The findings
                              Urban Development under Contract No.               presented in this report do not necessarily rep-
                              H-2342R. This material was assembled as sup-       resent those of the United States Government
                              plemental information for preparation of the       in general or the Department in particular.

                           Contents

                           PREFACE       ..............................               v!
                           1. THE DOMINANT ISSUES                ..............       1          Capital Investment Planning      ..........     28
                                   The State Review      ...................          1          Limiting Growth     .....................       28
                                   State Growth Policies and Programs          ...    1          Financing Community Development          .....  29
                                   Discontinuity and Uncertainty      .........       1          Planned Community Development          ......   29
                                   Recession and Inflation       .............        2          Energy Development Towns         ...........    30
                                   Curbing State Spending        .............        2          Housing Finance Programs         ..........     30
                                   The Energy Cri si s      ...................       3          Flexibility in Approach        ..............   33
                                   The Hardest Hit     ....................           3          State Housing Programs         ............     33
                                   The Energy Producers          ..............       3          Housing Rehabilitation         ..............   33
                                                                                             FOOTNOTES         ........................          33
                                   Threatened Resources          ..............       4
                                   Threatened Quality of Life    ............         4 Ill. CAPA61TY TO MANAGE            .................     35
                                   Environmental Quality         ..............       4          The Management Function          ..........     35
                                   Defending Environmental Laws        ........       5          The Federal-State Partnership       .........   35
                                   The Land Use Issue       ................          5      MANAGEMENT CAPABILITY              ............     35
                                   Population Trends        ..................        5          State Planning'Process         ..............   35
                                   Analysis of Changes      ................          6          State Planning Agencies        .............    36
                                   Confidence in Government      ............         6          Centralized Planning      ................      36
                                   The Growth Issues        ..................        7          Planning and Budgeting         ...............  36
                               FOOTNOTES          ........................            7          Interagency Coordinating Councils        ....   36.
                                                                                                 Community Affairs Agencies       ..........     39
                           11. THE STATE RESPONSE           ................          9          Regional Planning Organizations        .......  39
                                   Age of Slowdown          ......... *........       9          Scope of Programs         ..................    39
                                   Accepting Responsibility      ............         9          Umbrella Organizations         .........:....   43
                                   Problems of Categorization         ..........      9          Political Opposition      ..................    43
                               ECONOMIC DEVELOPMENT              ...   ........       9          Interstate Regional Cooperation        ......   44
                                   Job Creation Priority    .......    ........       9          State Initiated Programs       ............     44
                                   Industrial Assistance    .......    ........       10     GROWTH POLICY DEVELOPMENT                  ......   45
                                   Foreign Trade and Investment        ........       10         New Planning Perspectives        ..........     45
                                   Economic Development Planning           ......     10         Strategic Issues Analysis      ............     46
                                   A State Development Program         ........       10         State Investment Planning      ............     46
                                   The Transportation Component        ........       14         Property Taxation         ..................    47
                                   Rail Abandonment         ..................        16         Citizen Participation     ................      47
                               ENERGY        ............................             16         Looking to the Future     ................      48
                                   Haves and Have Nots      ................          16         Legislative Initiatives   ................      48
                                   Energy Program Structure      ............         16     FOOTNOTES         ........................          49
                                   Research and Development           ..........      20
                                   Conservation Efforts     ................          20 IV. DEFINING GROWTH OBJECTIVES                 ......   51
                                   Exploiting Energy Resources        ..........      21         Aspirations and Realities      ............     51
                                   Barriers to Development       ............         21         In Pursuit of Quality     ...........    ....   51
                                   Energy Facility Siting   ................          21     STATE OBJECTIVES              ..................    51
                                   Off shore Oil    ......................            22         The Substance and         Process   of Citizen
                                   Alaska's Pipeline        ..................        22            Choice     ........................          51
                               ENVIRONMENT          ......................            22         Economic Diversity        ................      52
                                   Economics and Environment          ..........      22         Population Dispersal      .................     52
                                   Land Use Planning        ..................        23         Guiding Development       ................      52
                                   Land Use Control Alternatives       ........       23         Conserving Energy         ..................    53
                                   Air and Water Quality    ................          26         Environmental Impact           ..............   53
                                   Environmental Agencies        ............         26         Strengthened Local Government          ......   53
                               COMMUNITY DEVELOPMENT                  ..........      28         State Government          ..................    53
                                   The Local Level     ....................           28     FOOTNOTES         ........................          54

                                                                                      Iii

                         V. 'IMPLICATIONS FOR STATE-FEDERAL
                              RELATIONS      ........  7 .................     55            Table I I I -Organization and Functions of
                                  Interdependence      ..................      55                         State Development of Trans-
                                  Federal Policy Impact     ..............     55                         portation  .................      15
                                  State Policy Positions  .....    ..........  55            Table IV - Activities of Key State Energy
                                  Harbingers of a National Growth Policy     -.58                         Agencies    ..............        17
                              FOOTNOTES        .............I..............    58            Table V - State-Funded         Energy     Re-
                          V1. CASESTUDIES          ......................      59                         search Activities   ..........    20
                                  Developing., Regional Economic Policy in                   TableVI -State Land Use Programs ..            24
                                    New England     ......................     59            Table V I I - Organizational Models of State
                                  Utah, Managing a Growth Explosion        .... 66                        Environmental Programs .... 27
                                  Washington Asks Its Citizens to Choose                     TableVIII-State Housing Finance and
                                    the State's Future     ................    76                         Development Agencies       .... 31
                                                                                             Table IX - Organizational Location of
                          LIST OF TABLES                                                                  State Planning Agencies .... 37
                                  Table I   - Special State Services to En-                  Table X - Functions of State Offices of
                                               courage Industrial Develop-                                Community Affairs      ........   40
                                               ment   ....................     11            TableXI -Substate Districts         ........   42
                                  Tablell -Advisory Capacity for Eco-                        Table XI I -State      Growth       Planning
                                               nomic Development     ........  13                         S iatu s  ..................      45

                                                                                   IV

                           Preface

                           One of the greatest challenges in the development of           The report was prepared by a project staff of the
                           a national growth policy lies in devising a workable         Council of State Governments under the supervision
                           approach to coordinating the critical growth activi-         of H. Milton Patton, Associate Director of State
                           ties of fifty diverse state governments with the             Services. The project director was Leonard U. Wil-
                           policies and programs of myriad Federal agencies.            son, who wrote most of this report. Background
                           There has never been a systematic portrayal of the           papers and sections of this report were prepared
                           experiences of all states in the planning for and            by Council of State Governments' staff members,
                           management of economic and physical change.                  L. V. Watkins, Ann D. Stubbs, Tom Hauger, Robert
                             This report represents an attempt to document              D. Matthews, James L. Breithaupt, and Jimmy E.
                           the diverse roles and programs adopted by state              Hicks; and by student interns, Elise Chapman,
                           governments in responding to the wide, systematic            George Orbanek, Barry Murphy, Gerald Smith, and
                           review of the capacities and experiences of state            James Penning. Clerical support was provided by
                           governments in managing growth. It reports on                Brenda Mearns, Mardell Horn, Joan Miller, and
                           recent actions and identifies innovative approaches.         Susan Harding.
                           This description is designated to provide a perspec-           A number of case studies on state growth manage-
                           tive on the states to the many individuals and organi-       ment were also prepared to supplement the survey
                           zations concerned with developing a national growth          materials. The case studies clearly demonstrate
                           policy and with assessing the state role in this policy.     the authority and mechanisms employed by specific
                             Source materials were many and diverse. They               states to develop and implement growth policy.
                           include recent governors' state-of -the- state and           They also show the.pivotal roles states have assumed
                           budget messages to the legislatures; results from a          thus far in the management of major growth issues.
                           preliminary verification questionnaire          to    state  The information for these case studies was derived
                           planning agencies; various state reports and docu-           from extensive interviewing in the states covered.
                           ments; telephone interviews with state officials               Many individuals participated in one day advisory
                           and agency associations; field interviews; and               panels during the five month study period, including:
                           several hundred bibliographic sources. The publi-            Paul Handier, Director of Population and Energy
                           cations, subject files and technical staff of the            Group, University of Illinois; Kenneth M. Curtis,
                           Council of State Governments provided an important           Former Governor of Maine; Philip M. Savage, Direc-
                           primary base of information.                                 tor of the Colorado Land Use Commission; S. Ken-
                             Judgments were made as to the relevance of                 neth Howard, Budget Officer, State of North Carolina;
                           materials to be included in a brief overview report.         E. Blaine Liner, Assistant Director of the Southern
                           The basic guidelines for inclusion were emphasis             Growth Policies Board; Dale F. Bertsch, Executive
                           on the 1973-1974 biennium, on legislative and                Director, Miami Valley Regional Commission;
                           executive actions, and on growth policy develop-             William V. Donaldson, City Manager, Cincinnati;
                           ment processes. The materials selected for review            Floyd J. Argersinger, Program Coordinator, Office
                           were chosen in the context of a working definition           of Program Planning and Fiscal Management,
                           of state growth policy. State growth policy is the           State of Washington; Daniel W. Varin, Chief of
                           articulation of goals and implementation of programs         State Planning Program, Rhode Island; William
                           designed to affect the quantity, quality, and location       N. Kelly, Legislator, State of Minnesota; Neil Peirce,
                           of human settlement, economic development, and               Author, Washington, D.C.; and John W. Abbott,
                           government services.                                         Executive Secretary, California Tomorrow.

                                                                                     v

                           government thinking. The comfortable expectation                The Georgia Legislature, prompted by Governor
                           of ever expanding resources on which state policies          George Busbee, cut $126 million from the 1976
                           has rested for 30 years had been shattered by                budget, including $15.9 million from welfare medical
                           inflation, recession, the energy crisis, and a nation-       programs. Pay increases, even to keep abreast
                           wide crisis of confidence in government and the              of the rise in the cost-of-living, were postponed
                           political process.                                           indefinitely and plans were made to drop up to
                             Except for those states with readily exploitable           21,000 people from welfare rolls. Governor Dan
                           energy resources or strong agricultural economies,           Walker Cut $535 million from the Illinois Legislature's
                           the management of growth in the sense of influencing         spending plans. Governor Brendan Byrne told the
                           the location of people and economic activity was             New Jersey Legislature, "We are not talking about
                           not a dominant concern. Within the broader defini-           trimming a budget; we are talking about taking a
                           tion of the Urban Growth and Development Act, that           hatchet to it to make it fit the $2.4 billion in antici-
                           of   developing     economic     strength,     conserving    pated revenues from our present sources."'
                           natural resources, and protecting the environment,
                           the states were in a critical period because of the          Curbing State Spending
                           combined negative forces of economic, energy, and
                           political problems.                                          Of 48 states responding to a survey made for the
                                                                                        Joint Economic Committee of the Congress in early
                           Recession and Inflation                                      1975, 22 had already been forced to cut their level.
                                                                                        of services in the 1975 fiscal year. Twenty-three
                           The combined forces of inflation and recession               had cut existing positions or frozen hiring; 25 had
                           created severe fiscal and management problems for            delayed some capital expenditures. Of the 18 states
                           the great majority of states. Faced with constitutional      the report identifies as having high unemployment
                           requirements for balanced budgets and taxpayer-              rates, 10 raised taxes, 14 cut services, 13 cut.
                           antagonism to tax increases, state officials were            employment and 13 delayed investments. Among
                           forced to cut programs, services, and personnel.             the more fortunate states with energy resources or
                             The unemployment rate in Massachusetts in the              strong agricultural economies, there were also
                           fall of 1975 hovered in the vicinity of 13 percent           cutbacks. Of the 21 states in this group which.
                           of the labor force. More than 362,000 people were            responded, eight raised taxes, five cut services,
                           out of work   .4 Governor Michael Dukakis told the           six cut personnel, and eight delayed investments.
                           Legislature in September that the budget deficit                While more than one-half of the states were
                           for the 1975 fiscal year would be $460 million with          reporting some form of direct fiscal adjustment in
                           the prospect of a $750 million deficit in 1976. In           1975, many of the others were drawing down their
                           November the Legislature passed a $3 billion budget          reserves. Because 40 states are either prohibited.
                           that would require $364 million in new taxes and cuts        from deficit spending or have low deficit ceilings,
                           in programs. The House voted to cut medicaid                 there is a tendency in state fiscal management to
                           and general relief funds.5                                   maintain a cushion of surplus. Tax revenues ex-
                             The Governor had already cut spending $70 million          ceeded    expectations in many states         during the
                           and eliminated 2,600 jobs. He proposed additional            recovery from the slump in the early 1970s. The
                           cuts of over $400 million that still fell short of balanc-   total of  the state surpluses reported by the 48
                           ing the 1976 budget. "Unfortunately," he said,               state respondents was $6.5 billion as         fiscal year
                           "both the underestimates of the cost of welfare and          1975 began. This was diminished by 40          percent to
                           the overestimates of revenues-which dropped                  $3.9 billion by the end of the fiscal year.10
                           substantially because of the recession-have                     All the states to varying degrees found themselves
                           brought us up short of our budget.  " 6                      with fiscal problems in 1975. For many states, the
                             The impact of the rising cost of      labor, materials,    prospect of national economic recovery, while wel-
                                 services combined with that       of declining tax     comed, is not expected to resolve state financial
                           revenues caused repercussions on 1975 and 1976               problems which Governor Dukakis describes as
                           f 1 seal year management in states across the country.       "paying dearly for our past spending habits." 11
                           In Virginia, Governor Mills E. Godwin, jr., ordered a        the budget document that Governor Dukakis in-
                           5 percent cutback in state aid to local schools to           herited when he took office in 1975 had warned:
                           cut $20.million from the State's projected deficit.                In area after area, the state committed itself
                           Colorado Governor Richard Lamm proposed a $24.7                 to built-in increases whose growth exceeds the
                           million cut from the 1976 general fund budget.                  growth built into the tax structure .... The state
                           The Governors of Vermont and Nebraska called                    government, constituent groups, the media and
                           special legislative sessions in October 1975 to                 the general public are going to have to begin to
                           deal with projected deficit.7                                   measure new spending commitments more care-

                                                                                     2

                              fully against the standard of anticipated revenue           The Hardest Hit
                              increases. 12                                               The economic problems of the high unemployment
                              Governor Robert Ray of Iowa stated the problem              states were closely tied to shortages and escalating
                            bluntly: "We must learn to say no .... We cannot              prices of energy following the Arab embargo in
                            pay for all the government some of us would like              1973. Because of geography and lack of an indige-
                            to have." 13                                                  nous energy supply, the New England states have
                              Governor Hugh Carey greeted the 1974 New York               been the hardest hit. At the time of the imposition
                            Legislative   session with an introduction to this            of the embargo, the region was dependent on petro-
                            budget which attacked the "Idea of government as              Jeum products for about 90 percent of its total
                            an ever-expanding institution, to be paid for from            energy supply and 88 percent of its petroleum supply
                            the ever-expanding riches of tomorrow."                       was imported from abroad. When the cost of a barrel
                              Carey continued:                                            of oil rose 300 percent between May 1973 and Feb-
                                 Well, Tomorrow is here ... and this government           ruary 1974, the estimated loss to New England's
                              will begin today the painful, difficult, imperative         economy was $2.5 billion-17
                              process of learning to live within its means....
                              We cannot continue to pass our responsibilities                The energy problems of New England were only
                              to the next generation of taxpayers. Now is the             slightly less severe for many northern industrial
                              time, when economic hardship dramatizes need-               states where the decline in demand for manufactured-
                                                                                          goods coincided with the onslaught of the energy
                              less spending, to bring government back into                crisis in late 1973 and 1974. Ten of the 18 high
                              line with reality. A program that cannot be justified       unemployment states are in the Northeast and North
                              in hard times should never have been created in             Central regions. The three Pacific Coast states of
                              good times, and this is the time to rid ourselves
                              of those drains in the pockets of the people.14             the contiguous 48, where oil and natural gas account
                                                                                          for 81 percent of energy use, are also high unem-
                            The Energy Crisis                                             ployment states and high unemployment in the
                                                                                          southeastern coastal states can be linked to the
                            The shortages and increased cost of energy were               natural gas dependency of the textile industry.
                            directly felt by all state governments in inflated
                            costs of operating state facilities and increased             The Energy Producers
                            materials and construction costs in capital projects.         Although they may be freed from worries about
                            Budgeting for heating, cooling, lights, paving, and           state revenu
                            vehicle operation became a universal headache.                               6s, the energy producing states face
                            No state's economy escaped the repercussions from             other problems as federal policy promotes national
                            the three-fold increase in petroleum prices with its          energy independence. These are the problems of
                            impact on the cost of transportation, farming              '  anticipating and dealing with the economic, environ-
                            manufacturing, construction, and services. These              mental, and social impacts of energy resource
                            contributed to general recessionary trends felt               development. ,
                            in decreased tax revenues from adversely affected                Kentucky is the largest producer of the country's
                            sectors of the economy.                                       most available natural resource of energy: coal.
                              There has been general acknowledgement among                As one of the major energy producing states,
                            the states that the energy problem is long-term.              Kentucky can view the economic future with more
                            The Nation's governors, in the National Governors'            confidence than the net energy consuming states.
                            Conference 1975-1976 policy statements, declare               However, bein    g energy rich is a mixed blessing.
                            that the states must take the lead in national efforts        Governor Julian Carroll points out that "Kentucky
                            to conserve energy and they -speak specifically of            bears the total social cost of environmental damage,
                            the wasteful use of electricity and petroleum products        reclamation, manpower training, and high up-
                            in declaring "a national attitude must be created             keep." 18
                            that includes the awareness of waste and its costs               Utah has immense and largely undeveloped energy
                            to our society. . . . "15 A Kentucky energy policy            resources including coal, oil, natural gas, oil shale,
                            paper begins with the statement: "America's energy            and uranium. The State's leadership is wary of the
                            crisis did not begin with the Arab oil embargo.               potential adverse impacts of energy exploitation on
                            The embargo forced us to acknowledge its existence            the State's communities. The coal and oil deposits
                            sooner than we would have otherwise, but the                  are, for the most part, remote from existing metropol-
                            problem has been emerging for some time. The                  itan areas. Existing small towns in the development
                            reason is basic: our consumption of energy has                areas are in danger of being overrun by rapid expan-
                            been expanding at a faster pace than our capacity             sion, and in many areas whole new communities will
                            to produce it." 16                                            have to be planned and built. A state energy policy

                                                                                       3

                          report says: "Roosevelt, located In the center of the         the State's annual allocation under the Colorado
                          oil rich Uintah Basin, is one example of a town that          River Compact in the next several years. Current
                          has already boomed as a result of oil development.            applications for all purposes already exceed Colo-
                          The increased population led to increased demands             rado's share by four timeS.23
                          for facilities and services out-stripped funds and              Speaking for all the Rocky Mountain States,
                          resources of the city to provide them." 19 The                Governor Rampton of Utah warns "our States do not
                          community grew from 2,000 to 5,000 in population              have enough water to support all the energy related
                          in three years. Governor Calvin Rampton has warned            developments which our resources could attract....
                          "that our expected economic development will                  We must preserve our limited water resources for
                          result in population shifts, with the effect that totally     the culinary, agricultural, and recreational use
                          rural areas will suddenly become populous, pre-               of the people in the towns and cities that will be
                          senting a demand for new roads and streets, ade-              experiencing tremendous growing pains as a result
                          quate water.and sewage systems, new schools and.              of the development and recovery of our energy
                          community services.... We can meet these chal-                resources. I do not want to see our rivers and
                          lenges. But, if they descend on us suddenly, they             creeks dry up from abuse and overuse." 24
                          could be overwhelming." 20
                            A report to the Governor, of Wyoming describes              Threatened Ouallty of Life
                          the coal development impact problem:                          The energy producing states are generally worried
                               As new people move into a coal development               about the effects of energy and energy related
                            area, they are usually drawn toward population              development on the quality of their physical environ-
                            centers. With additional people demanding basic             ment and their life styles. The Kentucky energy
                            public services, cities are forced to increase              development policy paper says:
                            total expenditures in response. But, the ability                 The Commonwealth is blessed with an un-
                            of Wyoming cities to raise suffidlent revenues                usually wide variety of land and water resources,
                            in meeting impact demand is limited. Constitutional
                            constraints govern city mill levies and bonded                and its people are proud of the variety and quality
                            indebtedness. Other statutory restraints are placed           of their environment. We are confident that man's
                            on revenue sources such as state shared revenues              growing need for energy can be met without long-
                            and user charges. Furthermore, since coal                     term degradation of our environment. Otherwise,
                            production and conversion processes are likely                this program would be a travesty and not an
                            to fall outside municipal taxing jurisdiction                 opportunity to enhance the lives of our people.25
                                                                                     '  Jack Campbell, president of the Federation of Rocky
                            cities are unable to include these sources in               Mountain States and former governor of New Mexico,
                            their tax base,21                                           told that group's annual meeting in 1974;
                                                                                             One specific concern that each of our governors
                          Threatened Resources                                            has had for some time, and is growing             almost
                          The concern in North     Dakota is the loss of agricul-         daily, is how to protect the quality of life we
                          tural land to strip mining. The State has extensive             enjoy in this region while simultaneously        sharing
                          reserves of lignite, a low grade coal that may be               our rich energy resources with the rest of our
                          the ideal raw material for gasification for electricity         Nation.
                          generating complexes. The State estimates that near-               We recognize that the development of           energy
                          ly113 square miles of lignite will be stripmIned                resources is a national requirement, but at the
                          annually, a total of 516 square miles in 40 years.              same time, we strongly believe these resources
                          In the words of Governor Arthur Link, "the net                  should be developed in such a manner-and at
                          result could be trading North Dakota's infinitely               such a rate-that the quality of life we enjoy
                          productive agricultural land for a one-time lignite             here is not seriously affected.26
                          harvest to provide short-term energy needS."22                Environmental Ouality
                            The consumption of water in energy production
                          is a particular problem in the western states. In             In the late 1960s and early 1970s air and water
                          some counties in Utah, farms are being purchased              pollution, depletion of irreplaceable natural re-
                          to gain water rights for use In power generation.             sources, urban sprawl, indiscriminate use of dan-
                          The State probably does not have enough water to              gerous chemicals, fear of nuclear generating plant
                          support all of its potential energy related develop-          accidents and desecration of scenic countryside
                          ment. The demand for water for oil shale, coal                and wild areas combined to create a national aware-
                          conversion, and coal fired generating facilities              ness of the abuse of the physical environment that
                          in the Colorado Basin area is expected to exceed.             had hitherto been a generally accepted-although

                                                                                     4

                            often inadvertent-consequence of American eco-             who will stand behind me to protect what we have
                            nomic and personal behavior. The Congress reacted          achieved." 28
                            with the passage of the National Environmental
                            Policy Act (1069), the Clean Air Act (1970), and           The Land Use Issue
                            the Water Pollution Control Act (1972). The Council        Despite their economic and energy problems, the
                            on Environmental Quality and the Environmental             governors collectively voiced serious concern on
                            Protection Agency were established. Programs were          problems of land use at the June 1975 annual
                            initiated on coastal zone management, noise abate-         meeting of the National Governors' Conference.
                            ment, pesticide regulation, and solid waste disposal.      The governors adopted a detailed policy statement
                               The states acquired substantial administrative          that framed the land use issue in these terms:
                            responsibilities under these programs and created               There is a need to face the issue of national.
                            their own organizational structures to carry out              and state-wide land use planning and decision-
                            these responsibilities. Most states adopted state             making in this decade. The proliferating trans-
                            environmental policies in areas of their specific             portation systems, large-scale industrial and
                            concern such as strip mine reclamation, wetlands              economic growth, conflicts in emerging patterns
                            protection, land use control, power plant siting,             of land use, fragmentation of governmental
                            and scenery preservation, and some set. their own             entities exercising land use planning powers,
                            higher standards for air and water quality.                   and the increased size, scale, and impact of
                               For most states, federal and state environmental           private actions have created a situation in which
                            program management was still in its formative                 land use management decisions of national,
                            stages when the energy and ec6      ,nomic crises began       traditional, short-term economic considerations
                            to build in 1974 an4 1975. Pressures developed for            and other factors, which are often unrelated to
                            relaxation of environmental regulations to expedite           the real concerns of a sound land use policy.
                            energy resource exploitation, to ease the economic              Across the nation, a failure to conduct sound
                            burden on utilities and industry of pollution abate-          land use planning has required public and private
                            ment expenses and to relieve unemployment by                  enterprise to delay, litigate, and cancel proposed
                            permitting new housing and industrial and commer-             public utility and industrial and commercial
                            cial development to escape full compliance with               developments because of unresolved land use
                            environmental protection laws.                                operations, thereby causing an unnecessary waste
                                                                                          of human and economic resources and a threat
                            Defending Environmental Laws                                  to public services, often resulting in a decision
                            Attorneys general of 30 states meeting in October             to locate utilities and industrial and commercial
                            1975 agreed that their legislatures and state admin-          activities in the area of least public and political
                            istrations were on the defensive. "It is hard in              resistance, but without regard to relevant environ-
                            economic times as we have not to maintain environ-            mental and economic considerations.    29
                            mental leadership" said Vermont's attorney general.        Population Trends
                            "The pressure is on us to give up and get out and
                            let industry have its way." California's chief law         Census figures and demographic studies for the
                            enforcement official said environmental causes             1970s suggest population movements, both regional
                            "have become something of a rear guard action ...          and inter-regional, that could have profound implica-
                            the reason is the economy." In North Dakota,               tions for state growth and development policies.
                            "We've been trying hard to resist sneak attempts           A potentially major trend is revealed by figures
                            by the feds to open up'our coal fields without the         for the early 1970s that had demographers and public
                            state-desired controls," the State's attorney general      officials bemused. Census figures for 1970-1973
                            said. The assembled attorneys agreed that despite          showed that the dominant trend of the period of
                            the pressures, it was important to keep up the fight       1940 to 1970 of rapid urbanization had markedly
                            for clean air, water, and sensible land use.27             diminished and that there was a shift in population
                               In Oregon, Governor Robert Straub attacked              distribution toward metropolitan areas-counties
                            what he referred to as a narrow segment of the             having no cities of 50,000 or more-and smaller
                            State's industry for trying to generate a movement         cities distant from large       metropolitan areaS.30
                            to repeal Oregon's pioneering land conservation            The non-metropolitan counties adjacent to metro-
                            and development law. At the annual meeting of the          politan areas showed the highest rate of growth,
                            Associated Oregon Industries, the governor called          suggesting possibly that the new movement was
                            the effort "an act of war against the citizens of          simply an extension of urbanization patterns. How-
                            the State." He went on to say "I will not yield an         ever, the more distant counties from the cities in
                            inch and I will mobilize an army of good citizens          the aggregate grew faster than the city area  S.31

                                                                                     5

                         Analysis of Changes                                         tion changes is likely to be in inter-regional migra-
                         Demographers found various reasons for the shift.           tions, the generally    declining birth-rate and the
                         A United States Department of Agriculture study             changing size of age groups as these affect school
                         commented:                                                  enrollments, housing    availability, health care, and
                              This turnabout in the pattern of population            programs for the aged. Only in the instance of sudden
                            growth reflects in large part the increasing avail-      very sizeable increases in the population of a rural
                            ability of jobs in nonmetro areas. The slower            area, such as that occurring in relation to large
                            growth in metro areas is basically determined            energy projects in the Rocky Mountain States, do
                            by very low growth or even decline in most of the        states appear to regard population shifts as a
                            Nation's major metro areas. The small and                critical issue.
                            medium-sized metro areas are more similar to             Confidence In Governmeni
                            the nonmetro pattern.32
                            Another Department of Agriculture analysis noted         Th'e New York Times reported in October 1975, the
                         that the significant increases in rural areas not           results of a national survey that reported a substan-
                         adjacent to metropolitan counties came in specific          tial decline in optimism about the Nation's future.
                         places where a major state facility, such as a state        "Inflation, the apparent inability of the country
                         college, was expanding; where new mining opera-             to solve its economic problems and a foreboding
                         tions had been opened; or where recreation or               that the energy crisis will mean a permanent step
                         retirement communities were being developed.33              backward in the nation's standard of living have
                            An analyst of Upper Midwest population trends            made inroads into American's confidence, expecta-
                         noted:                                                      tions, and aspirations" 35 the study found. The
                              Recent interpretations of these trends have            study indicated that the sense of losing ground
                            led many people to believe that urban expansion          economically was the strongest reasons for the
                            has been abruptly halted or even reversed.               erosion of optimism, but a loss of confidence in
                            Closer investigation of these data, especially           government contributed to the apprehension about
                            as they related to the Upper Midwest, indicate           the future.
                            that  such    conclusions require        clarification.    Governor Daniel J. Evans greeted the 1975
                            Most of the population growth in the Upper               session of the Washington State Legislature with
                            Midwest has been and continues to be urban               these words:
                            expansion, but the range of urban growth has                  We have emerged from the incredible turmoil
                            extended far into the countryside and to the               of the last decade. Turmoil in which our cities
                            small towns within commuting range of the                  throughout the land have been turned topsyturvy.
                            employment centers. The largest volumes of                 Turmoil in which the campuses of higher education
                            recent population growth in the Upper Midwest              of this nation have seen riots and disruption as
                            remain near and related to major urban areas.              never before. Years in which we finally work up
                            Futhermore, recent trends in nonmetropolitan               to the problems of protecting the natural environ-
                            growth are not abrupt changes from the past;               ment of this nation. Years of great and long-
                            they are not essentially different from those              lasting war which went on to the increasing
                            trends apparent during the 1960s. The changing             distaste of American citizens. Now, at the end
                            patterns of population distribution on the land-           of that decade, we must face up to problems of
                            scape represent accelerations of past trends and           inflation, problems of economic setback na-
                            expressions of long-term desires, facilitated by           tionally, which we have seldom faced before.36
                            increasing income and mobility.                            The report of a citizen's group asked by Governor
                              Caution should be exercised in the interpreta-         Evans of Washington to consider present problems
                            tion of recent population statistics. Most reporting     and future alternatives for that State expresses
                            has emphasized the rate of post-1970s population         citizen frustration with government:
                            changes rather than the volume. Thus, areas                   During the past two decades we have experi-
                            with small population bases may have experienced           enced the advent of mass communications. At
                            substantial rates of population growth, though             the same time, our educational level has risen
                            not large numerical increaseS.34                           tremendously. More and more, the general
                            For state policy makers, a long-term shift in the          public is as well informed on critical issues
                         pattern of intra-state population distribution will           as its public officials, and is just as capable
                         have significant implications for capital investment          of making intelligent decisions. But what has
                         planning and planning for state service delivery.             happened? Our system allows very little direct
                         However, until such a t    'rend is established over a        involvement. People become frustrated with
                         longer period, the interest of most states in popula-         government; they have begun to feel unable to

                                                                                  6

                                   influence its decisions. However, we know that                    the state of the economy and the energy crisis as
                                   people want to become involved more directly.37                   the basis of efforts to fight environmental regula-
                                The report cites a response to a survey question                     tion and demand the removal of environmental laws
                                indicating that 90 percent of those questioned                       from the statute books. However, governors across
                                placed increased citizen participation in govern-                    the country are defending a position that is positive
                                ment as a high or medium priority. Another illustra-                 to growth and placing a priority on job creation
                                tion of public sentiment showed that about three-                    while insisting that such growth be compatible
                                fourths of the people in the mail and telephone                      with the quality of their state's environment.
                                surveys wanted more issues decided by popular                         Faced with the imperative of doing more with
                                referendum and fewer by the Legislature.38                           less, governors are generally proclaiming the
                                   The latter attitude prompted Governor Evans                       need to improve their management capability, to
                                to tell the Legislature that there was "a deeply                     operate programs more efficiently, and to assure
                                felt and clearly expressed dissatisfaction with                      that the programs and activities of government are
                                the institutions of representative government."                      directed to the accomplishment of priority objec-
                                He went on to say:                                                   tives. Governor Dukakis defined the imperatives
                                     There is no more serious threat to our society                  for Massachusetts: "First, we must rethink the
                                   than an electorate which feels so frustrated by                   role of state government, taking into account its
                                   the governmental process that large numbers                       limitations and defining its priorities. Second, we
                                   reject voting as an effective method of participa-                have to make some major improvements in the
                                   tion and who prefer that decisions be made by                     efficiency of state government." 41
                                   plebiscite rather than by their elected representa-
                                   tiveS.31                                                          Footnotes
                                   In the difficult years of 1974-1975, the crisis
                                of confidence in govern ment-na tio na I in its origins              1. Urban Growth and New Community Act of 1970, Sec. 701 (b)
                                                                                                     2. Ibid., Sec. 703 (a) (5).
                                along with the economic, energy, and environmental                   3. Ibid., 702(c).
                                crises-was compounding the difficulties of state                     4. Boston Sunday Globe, "Massachusetts Needs Jobs-and
                                                                                                        More Jobs," October 26, 1975.
                                governments in coming to grips with their problems                   5. State Government News, "Bullet-Biting Budgeting Continues,"
                                and fashioning solutions to them.                                       October 1975 and "Budget Shortages Trouble States," No-
                                                                                                        vember 1975.
                                                                                                     6. Nation's Business, "The Money Crunch for States and Cities,"
                                The Growth Issues                                                       October 1975.
                                                                                                     7. Op. cit., State Government News.
                                The condition of       the economy is creating grave                 8. Op. cit., Nation's Business.
                                concern about the future for all the states, but                     9. The Current Fiscal Position of State and Local Governments.
                                particularly for those states facing severe fiscal                      Joint,Economic Committee, I Congress of the United States,
                                                                                                        May 6,1975.
                                problems linked to high unemployment, dwindling                      10. Ibid.
                                revenues and swelling public assistance rolls and                    11- Op. cit., Nation's Business.
                                costs. The words of governors and actions of legis-                  12. As quoted, Boston Globe, "Sargent View of State's Money
                                                                                                        Crisis," October 25,1975.
                                latures across the Nation demonstrate the recogni-                   13. Op. cit., Nation's Business.
                                tion of the need to anticipate the possibility of                    14. Budget Message, Governor Hugh Carey, State of New
                                                                                                        York, January 1975.
                                an extended era of a diminished rate of economic                     15. Policy Positions 1975-1976, (D-2, D-3), National Gover-
                                expansion. For the foreseeable future, the cloth of                     nors' Conference, 1975.
                                state government programs will have to be cut to a                   16. Kentuaky's Response, State of Kentucky, Second Edition
                                                                                                        1975.
                                pattern of very limited expectations.                                17. Annual Report Fiscal Year 7974, New England Regional
                                   Even for those states with strong energy based                       Commission.
                                                                                                     18. The Lexington Leader, "Carroll Seeks Aid in Energy Develop-
                                economies, burdens of generally inflated govern-                        ment," October 21, 1975.
                                ment costs are compounded by the costs of providing                  19. Energy-Rich Utah-Natural Resources and Proposed Deval-
                                for infrastructure and community services for                           lopments, State of Utah, Department of Community Affairs,
                                                                                                        August 1975.
                                development in advance of tax income from opera-                     20. Governor Calvin Rampton, State of the State Message, 1975.
                                ting enterprises. Moreover, these states have to                     2.I .Fiscal Impact of Large Scale Coe/ Development on State
                                face critical, long-term environmental and resource                     and Local Government in Wyoming, Gary Yaquinto and
                                                                                                        Michael N. York, April 1975.
                                problems as energy development competes for                          22. innovations in State Government, "A Basic Issue: Energy
                                water and land with agriculture and recreation                          or Food?," Governor Arthur Link, National Governors' Con-
                                                                                                        ference, June 1974.
                                and threatens traditional life styles. "in Idaho,"                   23. "Managing A Growth Explosion," Leonard Wilson, Council
                                said Governor Cecil Andrus, "we must manage                             of State Governments, October 1975 (case study for 1976
                                growth so that it will not destroy the quality of                       National Growth Report).
                                life*that makes Idaho great." 40                                     24. Ibid.
                                                                                                     25. Op. cit., Kentucky's Response.
                                   Opponents of environmental         protection have used           26. The Future of the Human Environment in the Rocky Mountain

                                                                                                 7

                                 States, Federation of Rocky Mountain States, September                   USDA before House Subcommittee on Housing and Commu-
                                 1974.                                                                    nity Development, September 4, 1975.
                             27. The Times-Argus, Barre-Montpelier, Vermont, "Diamond                34.  "Don't Jump to Conclusions About the 'New' Population
                                 Warns Recession Will Cause Campaign to Ease Environmental                Trends," Neil C. Gustafson, Associate Director, Upper
                                 Laws," October 16,1975.                                                  Midwest Council, July 21, 1975.
                             28. The Oregonian, Portland, Oregon, "Governor Straub Warns             35.  New York Times, "Economy's Decline Mars Belief in the
                                 Industrialists Not to Block Land Use Agency," September 20,              American Dream," October 26,1975.
                                 1975.                                                               36.  State of the State Address, Governor Daniel Evans, State
                             29. Op. cit., PolicyPositions (D-14).                                        of Washington, January 13, 1975.
                             30. The Economic and Social Condition of NonmetroWitan                  37.  Alternatives for Washington, Vol. 1, Office of Program Plan-
                                 America in the 1970s, Economic Development Division,                     ning and Fiscal Management, May 1975.
                                 Economic Research Service, U. S. Department of Agricul-             38.  Ibid.
                                 ture, for the Committee on Agriculture and Forestry, U. S.          39.  Governor Daniel Evans, Address to Joint Session, January 13,
                                 Senate, Committee Print, USGPO, May 30,1975.                             1976.
                             31. Ibid.                                                               40.  State of Idaho: Report from the Governor, October 27, 1975.
                             32. Ibid.                                                               41.  Op. cit, Nation's Business.
                             33. Statement by Calvin L. Beale, Economic Research Service,

                            11. The State Response                                      cedures to orchestrate these strategle& While the
                                                                                        objectives of these programs and the process set up
                                                                                        to coordinate them are not defined in terms of an ex-
                                                                                        plicit state growth policy, they are nevertheless, the
                            -AgeofSlowdown                                              embodiment of the State's intentions in shaping and
                            Economist Kenneth Boulding has identified a uni-            controlling its future.
                            versial problem of "the management of decline."
                                 But we are very Ill equipped for the management        Problems of Categorization
                               of decline. For several generations, a considerable      Every state has its distinctive governmental structure,
                               proportion of the human race, and the United             mode of operation, and philosophy. While all 50
                               States in particular, has enjoyed growth in almost       states share economic, energy, and environmental
                               all aspects of social life. We have had continuous       problems to some degree, the way in which these
                               growth in population, almost continuous growth in        problems affect the different states varies widely.
                               per capita real incomes, in productivity of the over-    Energy and agricultural resource distribution and in-
                               all society, and in the gross national product           dustrial job distribution tend to create regional eco-
                               (GNP). All over institutions and ways of thinking        nomic patterns, but these regions do not conform
                               have survived because they were well adapted to          with traditional geographic regional delineations. To
                               an age of rapid growth.                                  understand state growth management strategies, it
                                 If this age is now coming to an end, large adjust-     is necessary to consider the aggregate of programs
                               ments will have to be made in our ways of think-         and processes and to look at policies, activities, and
                               ing, in ourhabits and standards of decision making,      organizational initiatives of specific states in the
                               and perhaps even in our institutions. The prospects      broad categories of energy producing states, agri-
                               for the next fifty or one hundred years... suggest       cultural states, and industrial states.
                               we are now entering the age of slowdown.'
                               Boulding's picture of generally diminishing eco-
                            nomic expectations is one that governors, legislators,      ECONOMIC DEVELOPMENT
                            and other officials take seriously.
                                                                                        Job Creation Priority
                            Accepting Responsibility                                    Rates of employment and unemployment in any
                            The reaction of state officials is positive, both as to     given state generally reflect the overall health of the
                            the future and in delineating the role they as state of-    national economy and particular economic events
                            ficials must play. In Michigan, a state particularly        and activities that aff ect major segments of the state's
                            hard hit by economic recession and petroleum short-         economy. Thus, for example, a petroleum shortage
                            ages, a state official describes the economy of the         hits hardest where automobile manufacturing is con-
                            State as "at the crossroads." "The issues," he says,        centrated and where there is strong dependency on
                            "are the dislocation of the automobile industry, qual-      automobile based tourism and recreation. Space ex-
                            ity of the environment, and a profound concern for the      ploration benefits the centers of aerospace tech-
                            availability of energy resources." 2 Michigan's Gov-        nology, and a slowdown in the programs means high
                            ernor William Milliken's response is, "it is up to the      unemployment in those centers. Wheat sales to the
                            elected officials of Michigan to lead and inspire the       Soviet Union have a broadly felt stimulative effect In
                            people through and out of a wilderness of doubt, cyni-      the agricultural states. High energy prices spur en-
                            cism, despair and fear." 3                                  ergy resource exploitation in the resource states, but
                               In Michigan, as in most of the states, growth man-       act as an economic depressant In the energy depend-
                            agement policy is viewed as a coordinated effort to         ent states.
                            expand the State's economic base while protecting             The significant decisions that determine the health
                            its environment. The Governor and the Legislature           of the overall economy and Initiate these particular
                            have Initiated specific programs In Industrial and eco-     events and activities are made in the private sector
                            nomic development and In environmental manage-              and by the Federal and foreign governments. The
                            ment and they have instituted structures and pro-           states have only marginal Influence and control.

                                                                                     9

                          Nevertheless, high unemployment and severe fiscal            States Department of Commerce. The program,
                          problems have spurred many states to place eco-              aimed at attracting large scale foreign investment,
                          nomic and industrial development at the top of their         provides information and contacts for potential for-
                          governmental agenda in the mid 1970s.                        eign investors and sponsors seminars that bring in-
                            Traditional state development activities are: (1) fi-      vestors together with state and federal officials and
                          nancial assistance, including state and local tax in-        private sector representatives.
                          centives, loan guarantees, direct loans, develop-              Most states have provided marketing and promo-
                          ment and building authorities, and enabling authority        tional assistance for agricultural commodities for a
                          for local industrial development financing; (2) loca-        number of years. Presently 46 states provide some
                          tional assistance, including promotion and liaison,          form of marketing assistance. During the last two
                          support of industrial park development, and technical        years several states have expanded this type of serv-
                          assistance in site location; (3) manpower develop-           ice. Florida, in'1974, passed legislation that enables
                          ment, including vocational training and manpower             citrus fruit producers and handlers to correlate more
                          planning; and (4) information services, including re-        effectively the supply and marketing orders, affect-
                          search, statistical reporting, advertising, and pro-         ing varieties of citrus fruits, in an effort to establish
                          motion.                                                      orderly marketing conditions and flow of supply to the
                                                                                       market. Texas, in 1973, established a market order
                          Industrial Assistance (Table 1)                              for any designated fruit or vegetable produced and
                          Nearly every state in the Nation has some form of fl-        distributed in the State. Also, 42 states belong to one
                                                                                       or more interstate organization established to pro-
                          nancial assistance program for industry. The most            mote the sale of agricultural products on an interna-
                          common vehicle is industrial development authorities         tional basis.
                          now functioning in 22 states. Existing plant expansion
                          is eligible for assistance in 24 states. Loans and loan      Economic Development Planning (Table 11)
                          guarantees, variously for construction, machinery,
                          equipment or the establishment of plants are offered         In support of programs and activities, states have
                          by 29 state S.4                                              initiated statewide economic development planning
                            Some form of tax incentives for industry are pro-          programs. Section 302 of the Public Works and Eco-
                          vided by all the states, with 39 exempting raw ma-           nomic Development Act of 1974 provides funds to the
                          terials from inventory taxes, 32 providing incentives        states to establish a state economic planning proc-
                          for compliance with pollution control laws, and 30           ess that is intended to focus on the role of state gov-
                          exempting new machinery from sales taxes. How-               ernment and public infrastructure investment in
                          ever, only 15 states allow accelerated depreciation          stimulating and managing growth. By mid-1975,
                          of industrial equipment. Nine provide excise tax ex-         nearly all the states had started activities under the
                          emption, but 18 exempt industry from corporate               act. Twenty-four states already had Councils of Eco-
                          taxeS.5                                                      nomic Advisors, usually composed of state officials
                             All of the states have information and technical          and representatives of business, industry, and the
                          assistance programs to help and encourage plants             academic community. Twenty-two states had full
                          to locate within their borders and all have programs         time economic advisors to the governor. However,
                          to assist and train industrial employees. These pro-         state economic development planning was generally
                          grams are supplemented in every state by a variety           regarded as in its infancy with only a few states at-
                          of devices such as providing industrial sites, help in       tempting sophisticated technical effortS.6
                          bidding on federal procurement contracts, and spon-
                          sorship of research.                                         A State Development Program
                          Foreign Trade and Investment                                 An example of the scope of a state development pro-
                                                                                       gram can be found in Michigan where the recession
                          Promoting foreign trade opportunities for state prod-        and energy crisis have hit with particular severity.
                          ucts and attracting foreign investment in state in-          The automobile industry has been the mainstay of the
                          dustry is a growing area of state activity. In 1973,         economy accounting for 14 percent of all employment
                          only five states had overseas off ices. I n the two years    in the industry's peak employment year of 1956. By
                          that followed 12 states opened overseas off ices. Sev-       1974 auto industry employment had dropped to 10
                          eral governors have led overseas trade missions.             percent of the State's total. Moreover, the future of
                          Forty-eight states, Puerto Rico, and the Virgin Islands      the industry was uncertain. The cost and availability
                          are participating in an "Invest in America" program          of gasoline, the costs of manufacturing, and the pol-
                          instituted by the National Association of State De-          lution, congestion, and land use problems blamed on
                          velopment Agencies in cooperation with the United            private vehicle use have inspired predictions of a de-

                                                                                   10

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                                                                                                                    TABLE      I
                                                                                ADVISORY CAPACITY FOR ECONOMIC DEVELOPMENT*
                                           STATE                                        Council of                           Full-Time'                    State Science and/or Technology
                                                                                  Economic Advisors                    Economic Advisor                                AdvIwry Council
                                           ALABAMA                                                                                                                                x
                                           ALASKA
                                           ARIZONA                                             x                                   x                                              x
                                           ARKANSAS                                                                                x                                              x
                                           CALIFORNIA                                          x                                   x
                                           COLORADO                                                                                                                               x
                                           CONNECTICUT                                         x                                   x                                              x
                                           DELAWARE                                            x                                   x                                              x
                                           FLORIDA,                                            x                                   x                                              x
                                           GEORGIA                                                                                 x                                              x
                                           HAWAII                                                                                                                                 x
                                           IDAHO                                                                                                                                  x
                                           ILLINOIS                                            x                                   x                                              x
                                           INDIANA                                                                                                                                x
                                           IOWA                                                                                    x                                              x
                                           KANSAS                                                                                  x
                                           KENTUCKY                                            x                                                                                  x
                                           LOUISIANA                                                                                                                              x
                                           MAINE                                                                                   x                                              x
                                           MARYLAND                                            x                                   x                                              x
                                           MASSACHUSETTS                                       x                                   x                                              x
                                           MICHIGAN                                            x                                   x                                              x
                                           MINNESOTA                                           x                                                                                  x
                                           Mississippi                                         x                                                                                  x
                                           MISSOURI                                            x                                                                                  x
                                           MONTANA                                                                                                                                x
                                           NEBRASKA                                            x                                                                                  x
                                           NEVADA
                                           NEW HAMPSHIRE                                                                                                                          x
                                           NEW JEPGEY                                          x                                   x                                              x
                                           NEW MEXICO                                                                                                                             x
                                           NEW YORK                                                                                                                               x
                                           NORTH CAROLINA                                                                          x                                              x
                                          ,NORTH DAKOTA
                                           OHIO                                                x
                                           OKLAHOMA                                                                                                                               x
                                           OREGON                                                                                                                                 k
                                           PENNSYLVANIA                                        x                                   x                                              x
                                           RHODE ISLAND                                                                            x                                              x
                                           SOUTH CAROLINA                                      x                                                                                  x
                                           SOUTH DAKOTA                                                                                                                           x
                                           TENNESSEE                                                                               x                                              x
                                           TEXAS                                                                                   x                                              x
                                           UTAH                                                x                                                                                  x
                                           VERMONT                                             x                                   x
                                           VIRGINIA                                                                                                                               x
                                           WASHINGTON                                          x                                                                                  x
                                           WEST VIRGINIA
                                           WISCONSIN                                           x                                                                                  x
                                           WYOMING                      +-                                                                                                        x
                                       'SOURCES: Council of State Governments, Budgetary Processes In Me Staata@ July 1975; Bw* of the Staleg, 1976-77 (forthcoming); Economic Development Administration,
                                                     June 1975.

                                                                                                                           13

                          cline in the auto dependency of the American public.          pit state against state:
                          A Michigan development official spoke of "the high                  Since Michigan's natural comparative advantage
                          probability of a permanent drop in automobile pro-               for many businesses has been eroded by the in-
                          duction below 10 million units per year." The peak               creasing amount of financial assistance offered
                          level was 9.7 million units in 1973, but production for          businesses in other states, establishment of a
                          1974 was 7.3 million unitS.7                                     Michigan Job Development Authority could            help
                             Michigan's response has been to initiate a series             our state compete for new businesses on its         nat-
                          of economic expansion efforts whose objective is di-             ural merits.... Enactment of this enabling          leg-
                          versification of the State's industrial base and stabili-        islation will provide Michigan communities          with
                          zation of the State's unemployment. The expansion                ability to compete on more favorable terms          with
                          strategy incorporates tax incentives, assistance to              local units in other states which have this flexi-
                          new and expanding industries, and public sector in-              bility. 8
                          stitutional innovations.                                         If Michigan has lagged behind other states in in-
                             In 1975, the Michigan Legislature enacted a single         dustrial recruiting, the severity of the mid-1970s
                          business tax act which consolidated business income           economic slump was moving it to the forefront of
                          and ad valorum taxes. In 1974, the Legislature had            states in economic development efforts using a pro-
                          reduced the franchise fee, increased the tax credit           gram that was a composite of tools being used by
                          for property tax paid on inventories, and enabled             high-unemployment states across the Nation.
                          local units of government to freeze the tax assess-
                          ment of renovated plants and equipment.                       The Transportation Component (Table I 11)
                             To promote expansion of its present industry and,          If the possibility of a leveling of automobile produc-
                          recruit new industry, Michigan has undertaken an              tion in Michigan has profound implications for the
                          aggressive program of marketing and investment                State's economic future, it has even more portentous
                          promotion both domestically and through its over-             signals for the transportation planning of all the
                          seas trade off ices in Europe and the Far East. A com-        states. For the foreseeable future, the motor
                          panion program promotes agricultural exports.                 vehicle is expected to continue to provide America's
                             To directly support Michigan businessmen, the              primary form of transportation. However, state of-
                          State has established a Small Business Advisory               ficials are having to reconsider the extent to which
                          Council and Pro Business Office which help business-          future state transportation dollars will be invested in
                          men with the often confusing array of state regula-           highway cons   truction as opposed to other modes of
                          tions and assist them in facing new problems such as!         transportation.
                          the need for energy saving practices. The Office of              Since World War 11, highway building and mainte-
                          Minority Business Enterprises gives special as-               nance have dominated state interests in transporta-
                          sistance to minority managed businesses by provid-            tion. Concern with aviation and railroads was pri-
                          ing liaison with state agencies, helping with regulatory      marily regulatory, while urban mass transportation
                          processes, and providing information on services              was regarded as a local responsibility. In the late
                          available through state government.                           1960s and into the 1970s, states began to broaden
                             The 1974 session of the Michigan Legislature               their view with the realization of the degree to which
                          passed the Economic Development Corporation Act               population was concentrating in urban areas. The
                          which enables local units of government to create a           financial plight both of railroads and city transit sys-
                          single, nonprofit corporation for their jurisdiction to       tems was also becoming a public issue. A backlash
                          assemble and develop parcels of land for commer-              to the extravagant and land consuming interstate
                          cial and industrial development.. This act provides a         highway system reinforced public pressure for a
                          local government with a significant growth manage-            more comprehensive state involvement in all forms
                          ment tool assuring public participation in directing          of transportation planning and management. In 1974,
                          community development.                                        the Congress passed the National Mass Transporta-
                             Governor Milliken and the 1975 Legislature ap-             tion Assistance Act which greatly expanded the role
                          proved the Job Development Authority Act which al-            of the states in federal mass transportation programs.
                          lows the State to make loans, guarantee loans, and               The most general manifestation of state response
                          issue industrial development revenue bonds to fi-             has been the creation of Departments of Transporta-
                          nance industrial facilities. In 1972, Michigan was            tion which, in various different forms, have consoli-
                          found to be 49th among the states in providing fi-            dated and broadened state transportation responsi-
                          nancial inducements for industry to locate and re-            bilities. Hawaii created the first DOT in 1960, but
                          main in Michigan. The Governor, in presenting this            only six states had followed by 1970. Fifteen states
                          program, acknowledged an underlying problem of                established DOTs between 1970 and 1973 and nine
                          state industrial development efforts, that is that they       more in 1974 and 1975 for a total of 31 states with

                                                                                     14

                                                                                         TABLE I I I
                                              ORGANIZATION AND FUNCTIONS OF STATE DEPARTMENTS OF TRANSPOAtATION'

                                          State                 Date           .:jy0e Of                               Responsibilities
                                                              Created         Organization
                                   ARIZONA                      1974           Mixed              Aviation, Highways, Mass Train sit, Motor Vehicle
                                   CALIFORNIA                   1973           Mixed              Aviation, Highways, MassTransit,Transportation
                                                                                                     Safety
                                   CONNECTICUT                  1969           Mixed              Aviation, Highways, Mass transit, Railroads, Trans-
                                                                                                     portation Safety, Motor-
                                                                                                                               ,Vehicle, Water Transport
                                   DELAWARE                     1970           Mixed              Aviation, Highways, MissTransit, Motor Vehicle
                                   FLORIDA                      1967           Mixed              Aviation, Highways, Mass Transit, Railroads, Motor
                                                                                                     Vehicle, Water Transport
                                   GEORGIA                      1972           Modal              Aviation, Highways, MassTransit, Motor Vehicle
                                   HAWAI 1                      1960           Modal              Aviation, Highways, Water Transport, Transportation
                                                                                                     Safety
                                   IDAHO                        1974           Mixed              Aviation, Highways, Transportation Safety"
                                   ILLINOIS                     1972           Functional         Highways, Mass Transit, Transportation Safety, Motor
                                                                                                     Vehicle, Water Transport
                                   IOWA                         1974           Mixed              Aviation, Highways, Mass Transit, Railroads, Trans-
                                                                                                     portation Safety, Motor Vehicle, Water Transport
                                   KANSAS                       1975           Functional         Aviation, Highways, MassTransit
                                   KENTUCKY                     1973           Mixed              Highways, Motor Vehicle
                                   MAINE                        1972           Mixed              Aviation, Highways, Railroads
                                   MARYLAND                     1971           Modal              Aviation, Highways, Mass Transit, Transportation
                                                                                                     Safety, Motor Vehicle, Water Transport
                                   MASSACHUSETTS                1971           Mixed              Aviation, Highways, MassTransit, Water Transport
                                   MICHIGAN                     1973           Mixed              Aviation, Highways, Motor Vehicle, Water Transport
                                   MISSOURI                     1974           Modal              Aviation, Mass Transit, Railroads, Water Transport
                                   NEW JERSEY                   1966           Mixed              Aviation, Highways, Mass Transit,     Railroads, Trans-
                                                                                                     portation Safety, Motor Vehicle, Water Transport
                                   NEW YORK                     1967           Functional         Aviation, Highways, Mass Transit,     Railroads, Trans-
                                                                                                     portation Safety, Water Transport
                                   NORTH CAROLINA               1971           Modal              Aviation, Highways, Mass Transit, Highway Patrol,
                                                                                                     Railroads, Transportation Safety,   Water Transport,
                                                                                                     Motor Vehicle
                                   OHIO                         1972           Functional         Highways, Aviation, MassTransit, Railroads
                                   OREGON                       1969           Modal              Aviation, Highways, MassTransit, WaterTransport
                                   PENNSYLVANIA                 197P           Mixed              Aviation, Highways, Mass Transit, Railroads, Trans-
                                                                                                     portation Safety, Water Transport
                                   RHODEISLAND                  1970           Mixed              Aviation, Highways, Mass Transit, Railroads, Water
                                                                                                     Transport
                                   SOUTH DAKOTA                 1973           Mixed              Aviation, Highways
                                   TENNESSEE                    1972           Mixed              Aviation, Highways, MassTransit, WaterTransport
                                   TID(AS                       -1975          Mixed              Highways, MassTranslt
                                   UTAH                         1975           Functional         Aviation, 'Highways, Mass Transit, Railroads, Trans-
                                                                                                     portation Safety
                                   VERMONT                      1975           Mixed              Aviation, Highways, Mass Transit, Railroads, Trans-
                                                                                                     portation Safety, Motor Vehicle
                                   VIRGINIA                     1974           Mixed              Highways, MassTransit
                                   WISCONSIN                    1967           Mixed              Aviation, Highways, MassTriansit

                              'SOURCE: Date compiled from: Advisory Commission on Intergovernmental Relations, Toward More Balanced Transportation: New intergovernmental Proposals (1974); and CSG
                                       survey of store legislation, October 1975.
                                                                                           15

                          consolidated agencies. These agencies combine                  comments a publication of the Federation of Rocky
                          various elements and some are organized by mode-               Mountain States.9
                          e.g., highway aeronautics, rail, etc.,-some by func-              Within the Rocky Mountain region the largely un-
                          tion-e.g., administration, regulation, construction,           touched coal deposits of Colorado, Wyoming, Utah,
                          etc.,-and some by a mixture of mode and function.              Montana, New Mexico, and North Dakota are esti-
                          The present strength of state DOTs lies In their multi-        mated to be 40 percent of the Nation's total reserve.
                          modal planning capacity. Because of earmarked                  Hundreds of billions of barrels of crude oil lie locked
                          funding and the residual functions        of boards and        in -the shale of Colorado, Wyoming, and Utah. Ura-
                          commissions, many transportation          agency heads         nium, natural gas, and geothermal potential add to
                          lack full policy and budgetary control.                        the riches of the region, which the Federation paper
                                                                                         calls "the now frontier of social and technological
                          Rail Abandonment                                               development," but goes on to caution:
                                                                                              However, large-scale, uncoordinated develop-
                          The discontinuation of unprofitable rail routes and               ment of these energy resources is not desir-
                          abandonment of trackage has been a serious con-                   able .... [The people of the region] want to pro-
                          cern of states trying to maintain the infrastructure              tect their physical environment and to receive
                          needed In rural areas and smaller cities to maintain              "even-handed" treatment in the proportion of the
                          industrial and agri-business operations. The decline              nation's energy needs that they and the region are
                          in used trackage has become general across the                    called upon to contribute.10
                          country and a federal rail plan will make substantially           For New England, heavily dependent on imported
                          further cuts. Several states have reacted by purchas-          petroleum, the difficulties are severe and long range.
                          IN rail lines and leasing them to operators, or taking              New England bears a disproportionate share of
                          other -steps to prevent further abandonment following             problems resulting from the nat         ion's energy
                          the lead of Vermont, which since the early 1960s, has             crisis.... The cost of a barrel of oil, rising 3006
                          purchased 40 percent of the operational trackage in               from $4.04 In May 1     '973 to $12.50 in February
                          the State including a $3.5 million acquisition in 1974.           1974, has resulted In a $2.5 billion cost to New
                          In 1974, Iowa appropriated $3 million to upgrade                  England's economy. Because of the high cost, in-
                          branch lines and $300,000 for the study of state rail             dustries have already begun moving out of the
                          and mass transit system; New Hampshire's Legisla-                 region."
                          .ture, authorized state purchase of rail properties;              Whether energy     .rich or energy poor, the great
                          Now York voters approved a $210 million rail preser-           majority of states have endorsed energy conserva-
                          vation bond. The Indiana Legislature in 1975 ap-               tion as an Imperative. "Clearly, conservation is man-
                          propriated $1 million to acquire trackage and main-            datory," say state officials of coal rich Kentucky.12
                          tain service.
                             In July 1975, five of the six New England governors         Energy Program Structure (Table IV)
                          united in proposing draft federal legislation that would       Following the oil embargo, the Federal government
                          permit rail companies to transfer their fixed property,        ordered a 10 percent cutback in gasoline distribution
                          such as trackage, stations, and yards, to the U.S. De-         throughout the country and made grants to states to
                          partment of Transportation in return for long term             set up fuel allocation offices. Distribution imbalances
                          leases to use the properties. The rehabilitation and           occurred. In January and February 1974, 20 states
                          maintenance of these rail properties would become              adopted gasoline sales plans which in one way or an-
                          a public responsibility and thus a subsidy for rail
                          operations.                                                    other restricted purchases. The situation              also
                                                                                         promoted many states to institute energy data           col-
                                                                                         lection programs to monitor supplies and their         han-
                          ENERGY                                                         ling. The groundwork was being laid for more           per-
                                                                                         manent state energy planning activities.13
                          Haves and Have Nots                                               During the period from September 1973 to            July
                          The 1973 oil embargo and the energy shortages and              1974, 23 states enacted legislation Intended to re-
                          price escalation that resulted from it disrupted state         lieve energy crisis pressures. These ranged from
                          economies In ways that differed as states differ in            emergency powers for governors to the creation of
                          energy dependency and energy production potential.             new state agencies with broad energy problems solv-
                          For all the states and their governments, the energy           ing responsibilities. Emergency powers included,
                          situation has altered prospects and expectations with          variously, regulation of production, distribution, use,
                          as yet unforeseeable consequences. "The people of              and conservation. The latter often covering the days
                          the region recognize that their life styles will change        and hours of operation of commercial and industrial
                          as the entire nation changes its energy use patterns,"         establishments.

                                                                                       16

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                                                                                                            TABLE IV-CONTINUED

                                                                                                                                                                Activities
                                  State                    Name of Office                         Location                   1    2     3      4   -5 _F6        7      8     9     10                Others
                             Virginia                Virginia Energy Office                                                  x    x            x     x                  x     x     x
                             Washington              Washington State Energy            Office of the Governor               x    x            x                              X     X      Implementation of
                                                      Office                                                                                                                                Federal Programs
                             West Virginia           Fuel & Energy Off ice              Federal State Relations              x    x            x     x     x            x     x
                                                                                         Governor's Office
                             Wisconsin               Public Service                                                          x          x      x     x                  X     X     X      Regulation of
                                                      Commission                                                                                                                             Public Utilities
                             Wyoming                 Mineral Developm,ent               Dept. of Economic                    x    x            x     x                  x     x     x
                                                      Division                            Planning& Development

                              SOURCE: Council of State Governments survey of state energy agencies, November 1975.
                              1 n some states, energy-related activities are performed or shared with other agencies.
                             CODE: 1. Emergency planning           6. Consumer advocacy
                                    2. Resource allocation         7. Research and development
                                    3. Power plant siting          8. Interdepartmental cooperation
                                    4. Conservation plann ing      9. General data collection
                                    5. Recommending legislation   10- Forecasting needs
                                                                                                                                             @
                                                                                                                                               x

                                                                                                                                               x

                             The five state agencies that were created were                   Conservation Efforts
                          given a wide range of duties including collection and               For most state governments, conservation programs
                          analysis of information, development of long range                  are regarded as essential means of dealing with their
                          forecasts, contingency allocation planning, and                     immediate energy problems of shortage and cost.
                          statewide conservation plannijng. In addition, by mid-
                          1975 eight states had added energy divisions to ex-                 These programs typically include such measures as
                          isting agencies, 23 had institutionalized their original            reduction of heating and cooling levels in state office
                          energy allocation offices into planning offices, and                buildings and institutions, reduction of interior and
                          eight had created energy councils.       14                         exterior lighting levels and replacement of official
                             Illustrative of a state energy function is that of the           motor vehicles with compact models.
                          Minnesota Energy Agency. Public utilities and major
                          producers are required to supply the agency with                                             TABLE V
                          five-, ten-, and 20-year forecasts of demand, and the               STATE-FUNDED ENGERGY RESEARCH ACTIVITIES*
                          facilities needed to meet this demand. The energy
                          agency is charged with evaluating these projections                           State                    Research Concerns
                          as they relate to population and economic growth,                     ALASKA                        geothermal, pipeline
                          land use and development trends, and transportation                   ARIZONA                       solar, geothermal, growth
                          capacity. The agency must prepare a biennial report                   ARKANSAS                      coal
                          for the Legislature assessing resource availability,                  CALIFORNIA                    sit ng, nuclear, other
                          sources, and possible economic and environmental                      COLORADO                      general I
                          impacts.                                                              FLORIDA                       economics
                          -Research and Development (Table V)                                   HAWAII                        geothermal
                                                                                                ILLINOIS                      coal, alternate sources
                          The pursuit of longer range answers to energy prob-                   IOWA                          coal
                          lems has led to the creation of state research and                    KENTUCKY                      coal
                          development programs. Eighteen states allocated                       MAINE                         siting, solar
                          over $65 million to research and development in 1975.                 MARYLAND                      siting, nuclear
                          These programs in producing states tend to focus on                   MICHIGAN                      economics
                          increa�ing production and new utilization methods                     MISSOURI                      alternate sources, coal,
                          for existing resources while in energy dependent                                                       petroleum
                          states they are often directed to new and alternative                 MONTANA                       coal, environment,
                          sources of energy.                                                                                     nuclear, siting
                             Kentucky has undertaken a $57.7 million ten-year                   NEBRASKA                      Conservation, alternate
                          energy resource utilization program including $50                                                      sources'
                          million to provide seed money for pilot projects for                  NEW JERSEY                    wind, solar
                          the conversion of coal into synthetic fuels through                   NEW MEXICO                    solar, nuclear, siting,
                          gasification and liquefaction. The objective is to pro-                                                other I
                          duce clean domestic fuels and stimulate a potential                   NEW YORK                      transportation, nuclear,
                          multimillion dollar business for the State.16                                                          siting
                             The potential of solar and geothermal energy is.                   NORTH CAROLINA                petroleum
                          being investigated in research centers in New Mexico,                 NORTH DAKOTA                  environment
                          Colorado, Florida, Arizona, And Hawaii. Illinois is de-               OHIO                          oil shale, coal,
                          veloping energy related environmental monitoring                                                       conservation
                          techniques and studying energy transportation meth-
                          odology.16 A study in Vermont is exploring the use of                 OKLAHOMA                      conservation, alternate
                                                                                                                                 sources 1
                          wood for electrical generation using the technique of                 PENNSYLVANIA                  coal conservation
                          whole tree harvesting. An initial report concludes that               UTAH                          coal, solar
                          all the electricity needs of the State could be met                   VERMONT                       woodchips
                          through harvesting of culls-trees unsuitable for saw
                          logs.                                                                 WASHINGTON                    geothermal, hydro,
                             To meet planning and research needs, many states                                                    conservation
                          are developing information management systems.                        WEST VIRGINIA                 coal
                          Twenty-four states have reported that they are using                Funds not allocated to specific projects.
                                                                                                      Council of State Governments, State Response to the Energy Crisis (March
                          some type of computerized energy models enabling                    "'u"    1975); National Governors' Conference. Energy Program. Energy Research
                          them to run alternative scenarios for assessing the                         for the Governors 11974); Advisory Commission on Intergovernmental Rota-
                                                                                                      tions. State Actions 1974: Building on Innovations (1975). Date compiled
                          potential impact of energy policy options.17                                October 1975.

                                                                                          20

                              The State of Washington has set an objective of a         In the region, owning 36 percent of Colorado, 44 per-
                            permanent reduction of 15 percent over 1973-1974            cent of Arizona, 58 percent of Wyoming, 63 percerit
                            levels of energy use by state agencies. Through using       of Idaho, 66 percent of Utah, and 86 percent of Ne-
                            compact autos and shuttle buses at lower speed              vada. "One of the West's concerns Is that energy
                            limits, the State achieved a one million gallon reduc-      policy in Washington Is not being developed In a
                            tion in gasoline purchases in 1974. An Energy Infor-        calm, thoughtful and unhurried atmosphere, but in
                            mation and Conservation Center promotes voluntary           response to a crisis," says Governor Lamm."
                            energy conservation among citizens through semi-
                            nars, educational programs, studies, and a news-            Barriers to Development
                            letter. 18
                              Massachusetts seeks long range savings of dollars         The western governors, upset by pressure for too
                            and energy through modification of existing buildings       rapid development from the Federal government,
                            at its state institutions. Three phases lead to alterna-    also complain that when federal agency cooperation
                            tion of mechanical and electrical systems: An ap-           is needed to facilitate energy resource development,
                            praisal of consumption data for all candidate build-        it is riot forthcoming. Interagency conflicts, the lack
                            ings, a survey and analysis of buildings selected for       of defined policy, and the failure of coordinating
                            their significant savings potential and, finally, modi-     mechanisms frustrate progress. After more than ten
                            fication of heating, ventillation, air conditioning, and    years of planning in which the sponsoring companies,
                            lighting systems. The estimated pay back periods for        local governments, and the State of Utah have co-
                            the investment in the system changes range from             operated, the massive coal fired electrical generat-
                            eight months to two years.                                  ing project on the Kaiparowits Plateau in southern
                                                                                        Utah is suspended while awaiting action from Wash-
                            Explohing Energy Resources                                  ington, D.C. Governor Rampton blames "restrictive"
                                                                                        Department of Interior coal leasing policy and the
                            The eight Rocky Mountain States of Arizona, Col-            lack of a defined policy and procedure for transfer-
                            orado, Idaho, Montana, Nevada, New Mexico, and              ring public land to private control. Utah officials also
                            Utah are, in the words of Colorado Governor Richard         blame an unsatisfactory Environmental Impact State-
                            Lamm, "in the eye of the energy hurricane." The             ment prepared by the Bureau of Land Management
                            Governor, chairman of the Federation of Rocky               and opposition to the project by the National Park
                            Mountain States, explains:                                  Service. Both are agencies within the Department of
                                The nation is now looking more and more to the          the I nterior.22
                              West for the solutions to the energy crisis. People       Energy Pacility Siting
                              loosely suggest that our petroleum crisis can
                              easily be solved by developing oil shale and that         The location of energy processing and generating
                              the West, with its vast quantities of coal, can fur-      plants is generally recognized among the states as a
                              nish a permanent solution to our energy troubles.19       critical factor in. determining future development and
                              The worries of the western states center on sug-          settlement patterns. Over one-half the states have
                            gestions of a giant crash program "to get every bar-        instituted some form of statewide facility siting proc-
                            rel of oil and every ton of coal out of the ground as       ess that requires review by a central authority of
                            soon as it can,". the Governor says. To illustrate the      plans for location and construction.
                            dimensions of the problem, he says that the seven oil         A number of state siting laws require that utilities
                            shale processing plants currently proposed for Col-         submit long range demand and construction plans.
                            orado would require mining shale equivalent to 28           For example, the new California comprehensive
                            times the amount of coal now being mined in his             energy planning law establishes an Energy Resources
                            State.20                                                    Conservation and Development Commission, which
                              Loss of agricultural land, important to the region's      combines facility site approval with needsassessment
                            economy, and critically limited water supplies are          and forecasting, conservation responsibilities, and
                            cited by Governor Lamm as special concerns. The             emergency planning. All electric utilities must pro-
                            western states are equally worried aboutboom towns,         vide the Commission with five-, ten-, and 20-year
                            urbanization, environmental pollution, loss of recrea-      forecasts of needs, availability and costs based on
                            tional areas, and the cost of providing public services     projected population growth, industrial expansion,
                            to new communities.                                         and urban development.
                              The governors of the eight states formed the Fed-           In Utah, the Office of the State Planning Coordina-
                            eration in 1966 as a means of communication and             tor is preparing a "Guide to Decision Making for Sit-
                            policy development particularly in regard to the Fed-       ing and Development of Energy Facilities for Use by
                            eral government, which isby far the largest landowner       all Levels of Government Within the State of Utah."

                                                                                    21

                          Siting is defined as more than determining physical            will dwarf anything we have experienced to date, in-
                          location: Siting decisions are regarded as including           cluding the tr 'ans-Alaska pipeline." Governor Ham-
                          whether or not a proposed development is to be al-             mond said the pipeline "had a high price tag which
                          lowed; consideration of alternative locations; and d6-         has put strains on our State and municipal budgets
                          termination of the best means to accommodate de-               from Prudhoe Bay to Juneau."     24
                          velopment on a selected site. The purpose of the
                          guide is to assist governmental units in the develop-          Alaska's Pipeline
                          ment of an independent capability to analyze the need          While the anticipation of     troubles ahead bothered
                          for consequences of large scale projects. The identi-          states across the Nation,     Alaska was experiencing
                          fication of impacts-the costs and benefits-is to               the full force of major energy development. North
                          take into account a broad range of social and eco-             Slope oil reserves are conservatively estimated at 10
                          nomic factors as these bear on all segments of the             to 15 billion barrels recoverable by present tech-
                          affected population. The guide will also address the           nology. Total U.S. reserves before the discovery were
                          identification of unwarranted roadblocks to project            311billion barrels.25 By the end of 1977, if pipeline
                          implementation and of public service requirements
                          made necessary by large projectS.23                            construction is completed on schedule, 1.2 million
                            Of particular public concern in the states is the            barrels a day will. be flowing out of Alaska.26
                                                                                           The environmental consequences, once con-
                          location of nuclear generating plants. Washington
                          state law creates a "one stop" procedure for nuclear           sidered potentially disastrous, are now thought to be
                          plant siting permits by giving the Thermal Power               within manageable proportions because of the long
                          Plant Site Evaluation Council responsibility for con-          debate in Congress and consequent federal and state
                                                                                         regulations. However, a rising tide of fatal accidents,
                          sidering plant location in a single, comprehensive             prost! t6tion, crime, alcoholism, and divorce is the
                          process. Vermont's Legislature in its 1975 session
                          assumed veto power over nuclear plant site approvals           documented human toll of oil development and pipe-
                          of the Public Service Board.                                   line construction. For Alaska's state government, the
                                                                                         impact is being felt in severe fiscal problemS.27
                                                                                           Most of the $900 million the State received from
                          Off shore Oil
                                                                                         North S lope oil leases in 1969 has already been spent.
                          A 1975 U.S. Supreme Court decision ended the hope              Part of the revenue went to pay for new schools and
                          of the colonial states on the eastern seacoast that            other facilities and services needed in the boom com-
                          state property ownership extended to the Outer.Con-            munities associated with pipeline construction, but
                          tinental Shelf and its potential oil reserves. In U.S.         the greater part was absorbed by     the rapidly inflating
                          vs Maine, the court denied that colonial charters              costs of normal state government operations. The
                          granting ownership as much as 200 miles offshore               State will have to raise $50 million in revenue antici-
                          were valid as claims, thus confirming federal control          pation bonds to solve its financial problems over the
                          of offshore oil exploitation. The states involved ap@          next two years before the pipeline opens and oil
                          peared less concerned by revenue considerations                royalties begin to flow. The peak pipeline impact is
                          than by the onshore impact and environmental dan-              expected in the next two years as 16,000 to 20,000
                          gers that drilling might bring to them'    The staging of      workers demand increase& state services and as the
                          areas for exploration and the construction of landing          full cumulative consequences of accelerated growth
                          facilities, and processing plants for oil were seen by         is felt by state institutions.
                          coastal state governors as requiring planning and
                          control which they feared would not be adequately              ENVIRONMENT
                          managed by the Federal government. The Atlantic
                          coast governors, meeting in January 1975, asked that           Economics and Environment
                          the Federal government make adequate precautions
                          against oil spills and that provision be made   Ifor com-      Governor Calvin Rampton of Utah calls his basic
                          pensation if spills occurred.                                  growth policy approach "optimization," the consid-
                            Outer Continental Shelf exploration and exploita-            eration of all the dimensions of development. "We
                          tion continued to be of comparable concern to the              cannot afford to consider only one resource-eco-
                          Pacific coast states. Arguing for caution in offshore          nomics, social benefits, or the en4ironnient-on its
                          oil development, Alaska's Govern       'or Jay Hammond         own.      Let us pursue a responsible and deliberate
                          has expressed his state's growing concern about the            method which takes into consideration all of the var-
                          social, economic, and environmental effects of en-             ious factors associated with the development and
                          ergy development. The Governor told a congressional            utilization of these limited resources."
                          committee that his state needed more time "to pre-               When, Oregon was one of the Nation's ten fastest
                          pare for the statewide impacts which we fully expect           growing states in the late 1960s and early 1970s, then

                                                                                     22

                              Governor Tom McCall urged out of staters to visit, but       other local units of government to adopt plans meet-
                              not to stay. He tried to dampen and control the pace         ing standards set by the State. Florida, Idaho, Wyom-
                              of growth with strict environmental protection and           ing, Nebraska, and Virginia passed such laws in
                              land use laws. Now, with unemployment running                1975 as did Nevada in 1973, joining Oregon which
                              above 11 percent in some eastern Oregon communi-             pioneered such legislation in 1969. A similar measure
                              ties, Governor Robert Straub calls himself "a gov-           was passed by the Utah Legislature in 1974 but later
                              ernor who welcomes new industry." But he warns               defeated in a state referendum. The Iowa House
                              that future growth has to be linked to reasonable            passed a bill in both 1974 and 1975, but both were
                              land use planning in all areas of the State.29               rejected by the Senate.
                                Vermont also has a reputation for rigorous develop-          Montana has taken a unique avenue to land use
                              ment regulation and environmental quality controls.          management through a bill adopted in 1975 that re-
                              "Vermont's so called anti-business attitude is part of       quires land classification as the basis of land use
                              American folklore," says Governor Thomas Salmon.             taxation. Under the act, local governments must
                              "Expanding the permanent job base here is the top            classify lands in broad categories such as residential,
                              priority of my administration. Our strong environ-           commercial, and industrial. Tax rates will be set for
                              mental laws provide the underpinning for a healthy in-       each classification. To gain the best tax rate, property
                              dustrial base."                                              must be used according to its classification.
                                While economic development became a priority                  Hawaii, Florida, Maine, Vermont, and the Adiron-
                              objective of states suffering severe unemployment            dack Park area of New York, which makes up one-
                              and fiscal problems, there was generally a pro-              third of the State's land area, have comprehensive
                              nounced emphasis in development programs on                  land use regulation systems which require all de-
                              maintaining the quality of the environment and com-          lopment projects above a minimum size to have state
                              munity life. Governor Daniel Evans, reporting to the         permits. Hawaii's state management system dates
                              Legislature on citizen responses to his Alternatives         from the early 1960s and was modified by the 1975
                              for Washington program, related:                             Legislature to define more clearly and restrict the
                                   [Tlhere were letters from a people who spoke            discretionary powers of the Land Use Commission.
                                out strongly for a future of moderate and needed           Florida, Maine, and Vermont permit procedures,
                                economic growth and even more moderate popula-             which are based on criteria rather than zones, were
                                tion growth. There is no more of the feeling here in       adopted in the early 1970s. A proposed land use plan
                                our state that we must be first in population and          which would have added a locational dimension to
                                that we will be best only if we are biggest. They          Vermont's law was not acted upon by the 1974 and
                                spoke very strongly, overwhelmingly for a top              1975 sessions of the Legislature. The Adirondack
                                priority of protection of our natural environment          process, modeled after the Vermont law, was in its
                                and the conservation of our natural resources....          first years of full application in 1974 and 1975 and
                                But they said at the same time, let's rebuild our          was the subject of opposition that included scattered
                                cities which too often have decayed and reinvigo-          acts of violence.32
                                rate especially our smaller and medium-size
                                communitieS.30                                             Land Use Control Alternatives
                                                                                           The lead of the states with development permit pro-
                              Land U so Planning (Table V 1)                               cedures was not being followed by any other states
                                                                                           in the mid-1970s. While there were the several that
                              In economically beleaguered Michigan, Governor               were following Oregon to adopt mandatory local
                              Milliken, in his State of the State message, made            planning within a state policy framework, the majority
                              passage of a land use bill a priority item for legislative   of states taking action in the land use arena were us-
                              action during the 1975 session. The bill under con-          ing incremental measures. Wetlands protection laws
                              sideration would create a state land use commission          were in force in 20 states; flood-plains management
                              charged with preparing a state land use plan. This           in 24, including Nebraska which acted in 1975; 34
                              plan would be based on county land use plans, but            states had some form of regulation or guidelines for
                              the county plans would be prepared following state           power generation facilities siting; and five states had
                              policies and guidelines. The State also would desig-         adopted inland shoreline protection legislation. Thir-
                              nate critical areas and formulate rules for their pro-       teen states had initiated programs in critical areas
                              tection. The problem of developments of state and            designation aimed at identifying areas that for ecolog-
                              regional impact would be studied, but the bill does not      ical, recreational, or significant resource reasons
                              propose control mechanISMS.31                                warranted protection and areas that should be re-
                                Michigan was one of several states considering             served for development for public purposes such as
                              land use legislation -that would require counties or         air and land mass transit terminals.

                                                                                        23

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                                                                                                                                         TABLE VI-CONTINUED
                                                                           Type of State Program                                  Coastal                Wetlands.:           Power. Surface             Designation Differential                   Floodplain            Statewide
                                        State              Comprehensive             Coordinated           Mandatory               Zone               Management 5             Plant                      of Critical Assessment                                         Shorelands
                                                                   Permit            Incremental 2            Local          Management 4                                     Siting 6_     Mining          Areas'               Laws"          Management 1 0               Act
                                                                 System                                    Planning 3
                                 New York                             X                       X                                        X                        X                  X            X                X                   B                     X
                                 North Carolina                                               X                                        X                        X                               X                                    B                     X
                                 North Dakota                                                                                                                                      X            A                                    A
                                 Ohio                                                                                                  X                                           X            A                                    B
                                 Oklahoma                                                                                                                                                       X                                    A                     X
                                 Oregon                                                       X                   X                    X                                           X            A                X                   B
                                 Pennsylvania                                                                                          X                        X                  X            A                X                   B
                                 Rhode Island                                                 X                                        X                        X                  X                                                 B
                                 South Carolina                                                                                        X                                           X            A                                    B
                                 South Dakota                                                                                                                                                   A                X                   A
                                 Tennessee                                                                                                                                         X          A, 6
                                 Texas                                                                                                 X                        X                               X                                    B
                                 Utah                                                         X                                                                                                 A                                    B
                          (n     Vermont                              X                       X                                                                 X                  X            X                                    C                     X
                                 Virginia                                                                         X                    X                        X                             A,B                                    B
                                 Washington                                                   X                                        X                        X                  X            A                                    B                     X                     X
                                 West Virginia                                                                                                                                                A, B                                                         X            I
                                 Wisconsin                                                    X                                        X                        X                  X            X                X                                         X
                                 Wyoming                                                      X                   X                                                                X            A                                    A

                                      State has authority to require permits for certain types of development.                                                     identification  and designation of areas of critical state concern (e.g., environmentally fragile areas. areas
                                      State-establi shed mechanism to coordinate state land use-relaled problems.                                                  of historical significance.
                                      State requires local governments to establish a mechanism for land use planning (e.g., zoning, compre-                          I State has adopted lax measure which is designed to give property tax relief to owners of agricultural or
                                 hensive plan, planning commission).                                                                                               open space lands. (A) Preferential Assessment Program-Assessment of eligible land is based upon a
                                   I State is participating in the federally funded coastal zone management program authorized by the                              selected formula, which is usually use-value. (B) Deferred Taxation-Assessments of eligible land is based
                                 Coastal Zone Management Act of 1972@                                                                                              upon a selected formula. which is usually use-value and provides for a sanction, usually the payment of back
                                   5 State has authority to plan or review local plans or the ability to control land use in the wetlands.                         taxes. if the land is converted to a non-eligible use. (C) Restrictive Agreements-Eligible land is assessed at
                                   6 State has authority to determine the siting of power plants and related facilities.                                           its uge-value, a requirement that the owner sign a contract, and a sanction. usually the payment of back
                                   ' State has statutory authority to regulate surface mines. (A) State has adopted rules and regulations:                         taxes if the owner violates the terms of the agreement.
                                 (B) State has issued technical guidelines.                                                                                           1 0 State has legislation authorizing the regulation of floodplains.
                                      State has established rules. or is in the process of establishing rules, regulations. and guidelines for the                       State has legislation authorizing the regulation of shorelands of significant bodiesof water.

                                      SOURCE: Prepared by the Council of State Governments. based on information collecled'by the Council of State Governments, Land Use Planning Reports 1974 and 1975: and the U.S. Department of the Interior. Office
                                 of Land Use and Water Planning; and the Resource Land Investigations Program. Data compiled October 1975.

                            In 1972, Congress passed the Coastal Zone                 the land use aspects of the planning are to be co-
                          Management Act which authorized grants to eligible          ordinated with HUD 701 planning. Plans must be
                          states to prepare programs for the beneficial use and       finally approved by governors. States may designate
                          protection of the lands and waters of the coastal           substate planning areas or assume responsibility for
                          zone. All 30 states with Pacific, Atlantic, and Great       statewide planning. By mid-1975, 37 states had re-
                          Lakes shorelines are participating in the program.          ceived EPA approval for substate designations.
                            Land use planning is occurring in all 50 states. All        Air quality regulations have as profound a potential
                          have local zoning and enabling acts delegating var-         influence on growth patterns as water pollution con-
                          ious degrees of responsibility to municipalities, coun-     trols because fully, implemented, they would dis-
                          ties, and regional planning councils. Most provide          courage if not prohibit high concentrations of in-
                          funding or technical assistance to supplement fed-          dustry, automobiles, and housing. Under the Air
                          eral funding for local planning under Section 701 Of        Ouality Act of 1967, authority to set pollution stand-
                          the Housing and Urban Development Act of 1974               ards and enforcement and administration led to ex-
                          which requires funding recipients to develop a land         tensive amendments in 1970 which broadened the
                          use planning program by the summer of 1977. All             regulatory authority of the Federal government. Since
                          have some form of state level agency, program, or           1970, a complex and confusing situation has de-
                          control mechanism dealing with some land use ac-            veloped, illustrated by the fact that 20 states had
                          tivity, although few states can demonstrate either a        EPA approved implementation plans in 1973, but in
                          statewide land use management program or a co-              1975 many portions of approved plans had been re-
                          ordination process that approaches comprehensive-           voked or nullified as a result of court actions. The
                          ness. Land use planning is by and large a fragmented        most recent court decision in October 1975 ruled
                          assortment of functions carried an at several levels        that EPA violated state sovereignty by ordering the
                          of government with little interagency or intergovern-       District of Columbia, Maryland, and Virginia to re-
                          mental coordination.                                        quire inspection and maintenance of emission con-
                                                                                      trol devices on vehicles. The U.S. Court of Appeals
                          Air and Water Ouality                                       ordered EPA to draw up new antipollution traffic plans
                                                                                      with participation of state and local officials. In e&-
                          Like hilghways, sewage treatment systems are a very         sence, the decision said that in the control of ambient
                          significant determinant' of the location of growth.         air quality, the Federal government could offer the
                          Like highway planning, sewage treatment system              power to the states to regulate, could institute regu-
                          planning rarely is integrated with overall state land       lations itself, but could not force the states to
                          use and development planning. Governor Thomas               regulate.34
                          Salmon of Vermont took the occasion of his keynote
                          address at a November 1975 regional water purifica-
                          tion conference of the U.S. Environmental Protection        Environmental Agencies (Table V 11)
                          Agency to criticize the Federal government's $18 bil-       The explosion of environmental    activity in state gov-
                          lion crash water pollution control program for pitting      ernment in the late 1960s and early 1970s caused
                          environmental engineers, intent on cleaning state           states to create new agencies     and reorganize their
                          waterways at any cost, with land use and community          existing state structures. Two    different patterns of
                          development planners who fear that the program will         organization emerged. Twelve states created pol-
                          saddle communities with construction obligations            lution control agencies with a specific mission to
                          that will force them to invite unplanned growth to          promulgate and enforce environmental quality stand-
                          support their sewer systems. The Governor revealed          ards. Fifteen states created more broad-based
                          that his planners had caused a dispute in his adminis-      agencies combining pollution control with natural re-
                          tration by suggesting that since sewage plants en-          source management functions. Most of these reor-
                          courage growth, highest priority for construction           ganizations removed air and water quality responsi-
                          should be placed where growth is most desired.33            bility from state health departments although in 16
                             In 1975, the Environmental Protection Agency             states consolidated pollution functions remain lodged
                          (EPA) moved into serious implementation oi Section          with public health.
                          208 of the Federal Water Pollution Amendments of              Institutional change continued into the mid-1970s
                          1972 which created a major planning program for             period with Missouri creating a broad based environ-
                          areawide waste water treatment management plan-             mental agency and South Carolina reorganizing its
                          ning. The purpose of the program is to identify and         activities into a Department of Health and Environ-
                          plan for areas of multimunicipal scope with sub-            mental Control in 1974. In 1975, Massachusetts com-
                          stantial water quality problems requiring regional          pleted the final phase of its environmental reorgani-
                          solutions. Through a federal interagency agreement,         zation which now places the umbrella of its Executive

                                                                                   26

                                                                                             TABLE VII
                                                         ORGANIZATIONAL MODELS             OF STATE ENVIRONMENTAL PROGRAMS*

                                    1.  Health Departments (16 States)
                                        Alabama                                            Indiana                                              North Dakota
                                        Arizona                                            Kansas                                               Oklahoma
                                        Colorado                                           Maryland                                             Rhode Island
                                        Hawaii                                             Montana                                              South Carolina
                                        Idaho                                              Nevada                                               Tennessee
                                                                                                                                                Utah

                                    2.  Partially Consolidated or Unconsolidated Agencies (7States)
                                        California (a)                                     Texas
                                        Louisiana                                          Virginia
                                        Mississippi                                        WestVirginia
                                        New Hampshire

                                    3.  Little EPA's (12 States)
                                        Arkansas                                           Maine                                                Ohio
                                        Florida                                            Minnesota                                            Oregon
                                        Illinois                                           Nebraska                                             South Dakota
                                        Iowa                                               New Mexico                                           Wyoming

                                    4.  SuperAgencies (15 States)
                                        Alaska (b)                                         Massachusetts (e)                                    North Carolina (f)
                                        Connecticut (c)                                    Michigan (c)                                         Pennsylvania (g)
                                        Delaware (c)                                       Missouri (d)                                         Vermont (d)
                                        Georgia (c)                                        New Jersey (c)                                       Washington (b)
                                        Kentucky (d)                                       New York (c)                                         Wisconsin (c)

                                   a. Air, water, and solid waste management are loosely confederated.
                                   b. Includes coastal zone and/or critical areas management.
                                   c. Includes conservation programs and coastal zone and/or critical areas management.
                                   d. Includes conservation programs.
                                   a. The Executive Office of Environmental Affairs provides a policy and budget umbrella over the environmental programs, conservation
                                      programs, coastal zone management, agriculture, law enforcement planning, and other miscellaneous programs.
                                   I. Includes conservation programs, coastal and/or critical areas management, industrial development, community assistance, law
                                      enforcement planning, and other miscellaneous programs, does not include solid waste management.
                                   g. Includes forestry, parks, and recreation programs.

                                         Council of State Governments, integrating and Coordinating State Environmental Programs, fSeptember, 1976).

                                Office of Environmental Affairs over all pollution con-               management lies mainly with local health depart-
                                trol, agriculture, water resource, conservation and                   ments, though more states are providing technical
                                coastal zone management programs. Also in 1975,                       and financial assistance and regulation of solid waste
                                Florida strengthened its environmental quality agency                 delivery systems. Though the Federal government
                                by consolidating previously separated water resource                  sets minimum standards in certain areas of air and
                                programs, including dredge and fill, with all other pol-              water quality, an increasing number of states set
                                lution control functions in a new Department of En-                   standards which exceed federal ones or regulate
                                vironmental Regulation. The 1975 California Legisla-                  other pollution areas, such as stre       am sedimentation
                                ture defeated a proposal for a reorganized environ-                   standards, not covered by federal law. States have
                                mental agency.                                                        considerable discretionary power in developing and
                                   State implementation of environmental quality                      administering programs to achieve and maintain air
                                programs in air, water, and solid waste provides a                    and water quality standards. The standards and the
                                powerful tool to influence the location and rate of                   flexibility with which the programs are administered
                                community development. The authority to set quality                   can significantly affect the scale and distribution of
                                standards and to implement regulatory and manage-                     growth which can be accommodated within program
                                ment programs is shared among federal, state, and                     standards, as well as the design and infrastructure
                                local levels of government. Control over solid waste                  requirements of community development projects.

                                                                                                  27

                         COMMUNITY DEVELOPMENT                                         and wastewater treatment facilities construction
                                                                                       grants from the U.S. Environmental Protection
                         The Local Level                                               Agency (EPA) - State priority lists for capital improve-
                                                                                       merits affect the allocation of grants from the De-
                         States act directly to meet their growth management           partments of Transportation (DOT) and Health, Edu-
                         problems and they delegate responsibility to local            cation and Welfare (HEW). Areas which receive a
                         units of government. Whereas in land use the ap-              high priority and thus receive federal and state grants
                         propriate division of responsibility in a matter of dis-      for improved public infrastructure are prime candi-
                         pute between levels of every state, the area of com-          dates for continued growth whether or not such
                         munity development is one where a growing recogni-            growth is intended or welcomed.
                         tion of interdependency exists not only between state          Water supply is an aspect of environmental man-
                         and local governments, but also between state and             agement which gives the states leverage over com-
                         local units and the Federal government.                       munity development and general growth patterns. In
                           National economic and demographic trends create             many of the western states, state agencies oversee
                         varied growth patterns which create different pres-           the allocation of water rights among the competing
                         sures. The recent slowing of central city decline and         d.emandsof agriculture, industry, and community use.
                         the evidence of growth in nometropolitan areas will           The allocation of water rights, particularly where
                         affect community development program design. The              supply is limited, is increasingly being seen as a
                         pressures of rapid growth assocated with energy re-           policy tool for state government. In Montana, for
                         source development raise the problem of developing            instance, 1975 legislation forbids the transfer of
                         the front end capital and local capacity for com-             agricultural water to any other use.
                         munity development. The economic decline of cer-               Adequate and well planned public facilities--
                         tain urban areas creates problems of attracting a tax         water and sewer facilities, roads, and streets, and
                         base sufficient to support a population which con-            schools-are important components of sound pat-
                         tinues to grow. For other areas the problem is not            terns of community development. The efforts of
                         rapid or declining growth, but a steady growth and            Ramapo, New York, and Petaluma, Californlia to link
                         settlement patterns which hamper the efficient and            the community's growth to planned capital facilities
                         effective use of land and delivery of services.               expansion have been upheld by the courts. Yet many
                           A renewed awareness of the state's role in com-             states have regions in which growth pressures have
                         munity development and growth, and the interest of            resulted in state or locally mandated moratoria on
                         many states in growth management, highlight the               community expansion. New Jersey, Maryland, Mas-
                         mutually supportive relationship which potentially            sachusetts, Wyoming, Ohio, and Virginia are states
                         exists between community development and state                where numerous moratoria on sewer extensions have
                         government. States are the repository of land use and         been imposed for public health reasons.
                         capital improvements tools, and are the governmental            In Maryland, the State has linked community
                         unit able to create a comprehensive planning frame-           growth with public facilities by requiring that building
                         work to link the varied participants and programs             permits and subdivision plans be consistent with com-
                         into a coordinated community development process.             munity plans to provide adequate water and sewer
                         A state cannot influence national economic trends             facilities. The legislation effectively prohibits either
                         which significantly affect its economic well being, but       state or local authorities from granting permits or
                         it can use its police powers to optimize the benefits         approving plans unless utility systems conform to
                         or minimize the negative impacts of those trends.             county plans. Montana adopted regulations in 1974
                                                                                       which require developers of subdivisions to provide
                         Capital Investment Planning                                   county commissioners with detailed information on
                         The magnitude and distribution of public and private          the additional public services required by a project
                         capital investments is a major determinant in the             and on the manner in which the costs of services will
                                                                                       be distributed.
                         kind, quality, and location of community infrastruc-
                         ture and is thus a major influence on employment       0P_    Limiting Growth
                         portunity and population distribution patterns and on
                         land use. Many state and local governments attempt            While states are including capital improvement plan-
                         to use public capital investment management as a              ning and budgeting as a tool for more effective and
                         means to cope with growth.                                    efficient growth management at the state and local
                            Though the federal role in setting criteria and in         levels, many local governments are using their con-
                         funding community development programs is highly              trol over public works as a means to stop or slow
                         visible, the states play a critical role in the allocation    growth. Rhode Island adopted a population ceiling in
                         of federal funds. States develop priority lists for sewer     Its "Limiting Growth." The increasing number of local

                                                                                   28

                              governments adopting ordinances or capital improve-              Significant state action during 1974-1975 to as-
                              ment plans designed to limit growth, coupled with the          sist communities in financing community develop-
                              decisions of courts in several states including New            ment was legislation to expand the powers of com-
                              Jersey, Massachusetts, and California in support of            munities to finance development and redevelopment
                              fair share housing and equal educational opportunity,          projects. Washington and Colorado followed the ex-
                              increase the prospect that community development               ample set earlier by Ohio and California by authorizing
                              will no longer be widely viewed as uniquely a local            local tax increment financing of urban redevelop-
                              responsibility.                                                ment. More common was state legislation broadening
                                School facilities are a major factor in individual           the authority of local public agencies to issue revenue
                              decisions to locate in one community relative to               bonds. Colorado in 1975 expanded the activities
                              others. Financing school construction and programs             eligible for local revenue bond financing to include
                              is also the major local government expense in many             low and middle income housing, utilities, recreation
                              states. Unlike the capital investment in utilities and         facilities, airports, and mass transit facilities.
                              streets, the responsibility for schools cannot be                New legislation in California permits all cities and
                              shifted to the developer, and the issue has been a             counties to issue revenue bonds for rehabilitation
                              stumbling block for large scale community develop-             programs. Illinois adopted legislation in 1975 to per-
                              ments in several states.                                       mit municipalities to issue revenue bonds for com-
                                 In contrast, housing supply is primarily a private          mercial redevelopment projects, while recent laws
                              sector activity, but state housing finance programs            in Connecticut and Michigan give local governments
                              to expand the available housing for low and moderate           sweeping financing powers to renovate center cities
                              income families may have both negative and bene-               and attract industry through revenue bonds, special
                              ficial impacts on community development patterns.              taxes, and tax concessions. New Jersey has an ac-
                              Large scale community developments which offer a               tive loan program within the Department of Com-
                              range of housing types may be an asset in attracting           munity Affairs for neighborhood preservation, and a
                              economic growth to an area, yet the social char-               similar program was proposed in Texas.
                              acteristics and financial costs associated with sub-
                              sidized and multi-family housing frequently arouse             Planned Community Development
                              the opposition of local citizens who respond with ex-          The new community concept is the most comprehen-
                              clusionary zoning.                                             sive approach to community development. Title VI I
                              Financing Community Development                                of the Housing and Urban Development Act of 1970
                                                                                             launched the Federal government in broad scale sup-
                              Local governments' problems in accommodating new               port of large scale new town construction. Sub-
                              growth pressures and in discouraging community                 stantial program support for new communities was
                              decline are as much a matter of financing as they are          envisioned by Congress to assist private developers
                              an ability to develop plans and programs. The forces           and to encourage the active participation of state
                              contributing to community growth or to community               and local governments and public development
                              decline are regionaf or national in scope; yet most            corporations. However, the limited funding committed
                              communities have a fixed economic base from which              under Title VI I has severely hampered private new
                              revenues are generated and a constitutionally or               community projects and has discouraged state initia-
                              statutorily set debt. ceiling. Local governments have          tives to participate in the programs.
                              often responded to these constraints by creating                 States have developed policy and program sup-
                              special financing districts-a trend which has led to           port for large scale, planned' communities through
                              the fragmentation of local government accountability           imaginative implementation of existing powers and
                              in many areas.                                                 programs. New York's Urban Development Cor-
                                Several states are responding to this financing              poration has demonstrated this creativity with its
                              dilemma through direct 'or indirect financing 'pro-            development of three new towns: Roosevelt Island,
                              grams. The state's assumption of a greater share of            NYC; Audubon, near Buffalo; and Raddison, near
                              public facilities' costs through a "buy in" to fed@rai         Syracuse. Several states have adopted le          .gislation
                              grants can relieve the capital burden of communities.          defining the state's relationship to new community
                              Thirty-two states have "buy in": provisions to various         development. Eight states, including New York in
                              federal grant programs, while 21 states have state             1968, have adopted rfew communities legislation:
                              funded revenue sharing. Vermont, Maine, and                    Kentucky in 1970; Ohio in 1972; Louisiana in 1974;
                              Alaska attempt to improve the credit ratings of muni-          Georgia in 1974; Tennessee in 1974; Arizona in 1974;
                              cipal bondsand thus reduce interest rates by channel-          and Florida in 1975. In Arizona, Tennessee, Ken-
                              ing local issues through a state level municipal bond          tucky, and Florida, the major emphasis of the policy
                              bank.                                                          is to provide state administrative oversight to safe-

                                                                                         29

                         guard the public interest which is impacted by private        go in providing the expanded facilities and services
                         efforts to develop new communities. Policies in               demanded by the new population brought in by the in-
                         Georgia, New York, Ohio, and Louisiana make pro-              dustrial development. Moreover, a special district is
                         visions for the expenditure of public funds in support        permitted a supplementary bonding capability if the
                         of new communities meeting specific criteria. In              bonds are guaranteed by a taxpayer-including a
                         most of the states with formal new community poli-            private entity-within the district.
                         cies, little or no action has been undertaken to acti-          The Building Schoolhouses Act allows school dis-
                         vate the provision of enabling legislation. Only in           tricts to enter into contracts with industrial develop-
                         New York, Ohio, and Louisiana have the powers au-             ers to provide school facilities if the districts cannot
                         thorized by state policy been substantially imple-            otherwise meet growth demands related to new de-
                         mented.                                                       velopment. A new Lending Program for Municipal
                           Land-its assembly, cost, and zoning-is a key                Water Districts established a $2 million fund of sup-
                         component of large scale development. The growing             plementary construction loans for culinary water sys-
                         state initiatives in regulation of land use and environ-      tems. A State Housing Finance Agency was created
                         mental affairs affects the community development              to make mortgage money available at less than
                         process significantly enough to constitute a de facto         market rates to moderate income familieS.35
                         state policy for new community development. The
                         consequences of the varied state activities in this           Housing Finance Programs (Table V I 11)
                         field are both a curse and a blessing to developers           The most rapidly expanding area of state involvement
                         of large scale communities. New communities are               in community development is housing finance. The
                         susceptible to the growing range of state and local           suspension of federal housing subsidy programs in
                         activities to influence the use of land and natural re-       1973 brought pressure for state action to meet a
                         sources due to the scale and comprehensiveness of             rapidly escalating need for housing within the means
                         their development. More than a power plant or an in-          of low and moderate income families. The 1974 Hous-
                         dustrial facility, balanced new communities touch on          ing and Community Development Act in Section 8 set
                         the full range of local and state police powers to pro-       aside special housing funds for state housing finance
                         tect the general welfare: land, air, water, solid waste,      agencies. Nine states created such agencies during
                         public safety, and public utilities.                          1974-1975, making a total of 39 states with housing
                         Energy Development Towns                                      finance agencies. In 12 states the authority of the
                                                                                       agencies was expanded or initially activated. Two of
                         Social, economic, and environmental problems with             the more active agencies, the Illinois Housing Devel-
                         boom towns associated with large energy resource              opment Authority and the Michigan State Housing
                         projects in remote areas has led many of the energy           Development authority, are seeking additional legis-
                         rich states to take positive steps, often in cooperation      lation and bond authority to meet the demand for
                         with industry, to develop liveable communities for            housing and neighborhood facilities.
                         project workers. In Utah, for example, the 1975 ses-             The rising housing costs and increased interest
                         sion of the Legislature adopted a package of bills to         rates which agencies must offer have reduced the
                         facilitate energy development projects with emphasis          effective subsidy which a state agency can offer
                         on the planned new communities that Utah regards              through its own programs. Thus many agencies seek
                         as essential elements of such projects. The package           to provide a greater subsidy by combining the sav-
                         is designed to promote cooperation between private            ings offered by the agency with federal programs of-
                         developers and public officials and to alleviate the          fered by the Section 8 leased housing subsidy, the
                         costs of rapid growth for small existing communities.         Section 235 subsidy for homeownership, and the
                            The Resource Development Act enables the pre-              rental and homeownership programs of the Farmers
                         payment of the state's four percent sales and use             Home Administration (Fm HA).
                         tax by a developer into an account from which the                Several states have extended the authority of their
                         state can draw to finance public improvements, such           housing finance agencies beyond housing finance
                         as highways, needed to initiate project development.          mechanisms. New York's Urban Development
                         The Special Service District Act allows exceptions            Agency has a range of powers to acquire land, in-
                         from municipal bonding limitations through the use of         cluding a limited power of eminent domain, and to
                         special districts within which the assessed value of          develop and redevelop housing, industrial, and com-
                         all property, regardless of whether it is in town, city,      mercial facilities, and educational, cultural, com-
                         or county, determines the bonding limit. This provi-          munity, and other civic facilities. The Hawaii Legisla-
                         sion makes it possible to include the value of in-            ture recently gave the Hawaii Housing Authority the
                         dustrial operations beyond municipal boundaries in            authority to do commercial and industrial develop-
                         calculating the coiling to which municipal debt may           ment and to override local zoning, thus making it one

                                                                                     30

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                                                             0 CO  >  CO 0  >I>   M  >      CO  >  >             I                 r-
                                                                                                             Loan.
                                                                                                      >@ C)i
                                                          m                                                  Seed
                                            3   5   a        0 o   >  ai c) > >   >         0 > M  >  W 0
                                                    I     o                                                  Money
                                                o
                                                      o   w
                                                    5 9   o                                                  Mortgage Insur-
                                                          cZ > 0   CD >  0  0 >   >  >      M C)>  0  > >
                                                o                                                              ance Program
                                                          o
                                            3
                                            R                0 0   C) 0  0  CO 0  >  >      00  0  0  0 0    RentSupplement
                                                                                                             Program 2

                                                                                                             Land
                                                             > 0   Ca >  0  0 >   >  0      >
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                                                          3                                                  No                      0
                                                          3  > 0   0  >  0  >  0  >  C)     a)0 0  0 > 0       n-                    S
                                            To                                                                                       o
                                                me                                                            Housing 4

                                                             0 >   CO CO >  C13>  >  >      a) a)> >  W  >   Rehabilitation
                                                                                                             Program

                                            z
                                                             >  Ca C13 CO > a) co al a)     CO a) CO0 CO >   Technical             0 0.
                                                                                                             Assistance            w 3
                                                                                                                                   V

                                                                                                             Slate
                                                             0 0 co co ca a) w o co                              wide Housing
                                                                                            0 > CO 0 0 0
                                                                                                             Needs Evaluation

                            of the most powerful housing finance agencies. The          Rhode Island, and California enacted enabling leg-
                            housing agencies In 25 other states have authority to       islat(on for cities to establish and provide funding for
                            acquire and develop land for housing projects. Agen-        these programs, but a similar proposal failed in Penn-
                            cies in 19 states may participate in nonhousing com-        sylvania in 1973. Dayton, Ohio, developed an urban
                            munity development projects which are necessary to          homesteading program in 1974, and Connecticut in
                            the objecVve of providing housing, but few have done        1975 adopted enabling legislation.
                            SO.                                                          The difficulties which central city residents ex-
                                                                                        perience in obtaining private financing for new con-
                            Flexibility In Approach                                     struction or rehabilitation have prompted several
                            Unlike federal programs designed for nationwide ap-         states and cities to enact anti-redlining legislation
                                                                                    ,   ahead of congressional efforts. Illinois in 1975
                            plication, state housing finance agency programs ex-        adopted legislation requiring disclosure of mortgage
                            hibit greater flexibility to state and local conditions.    loans, while a similar bill in New York barely failed
                            In Maine, West Virginia, Idaho, and South Dakota,           passage and will be resubmitted in 1976. A task force
                            the agencies concentrate on rural housing needs. In         was created in Massachusetts to examine approaches
                            Georgia, Illinois, and Rhode Island, the statutes or        to the redlining problem, and any legislation will de-
                            regulations governing the agency specify a balance          pend upon negotiations between state and lending
                            between urban and rural targets of agency programs.         institution officials. Legislative recommendations are
                            In other states where blight threatens central cities,      being developed to present to, the California Legisla-
                            state agencies a  're developing special programs to        ture in 1976.
                            rehabilitate housing or to attract mortgage money to
                            such areas. Illinois Housing Development Authority          Housing Rehabilitation
                            began a special loan program to complement the
                            State's 1975 anti-redlining law, while Michigan's           The high cost of new housing and the shortage of
                            housing agency has worked with HUD in developing            federal housing programs have prompted several
                            a housing rehabilitation program for Detroit's blighted     states to adopt various programs to encourage pub-
                            areas.                                                      lic and private sector programs in housing rehabilita-
                                Ttle success of housing finance agencies in in-         tion. Most of the housing finance agencies created in
                            tegrating subsidized and market rate units within the       1974 and 1975 were authorized to make rehabilita-
                            same project may change existing attitudes toward           tion loans, while existing agencies were given new
                            the creation of a subsidized housing stock for low          authority or implemented existing authority for re-
                            and moderate income families. Such a change may             habilitation loans. Tennessee established a separate
                            be accelerated by the implications for state "fair          Housing R@habllltatiion Corporation in 1974, while
                            share" housing plans of the New Jersey Supreme              Utah is one of the few states to earmark part of gen-
                            Court ruling in the Mount Laurel township case. That        eral revenue sharing for rehabilitation programs in
                            decision found Mount Laurel's zoning ordinance to be        housing and community development. A similar focus
                            unconstitutional because it was exclusionary. It went       on rural rehabilitation programs emerged in Pennsyl-
                            further to say that the municipality should take posi-      vania with a program sponsored by the State Depart-
                            tive action to accommodate its fair share of regional       ment of Agriculture, in conjunction with FmHA re-
                            low and moderate income housing needs.                      habilitation programs. Legislatures in Oregon, Mary-
                                                                                        land, and Massachusetts considered proposals in
                            State Housing Programs                                      1975 lo establish revolving funds (Maryland), tax ex-
                                                                                        emptions (Oregon), or variable loan repayment
                            Though housing finance agencies are the most visible        (Massachusetts) to encourage rehabilitation efforts.
                            state housing programs, several states have created         Several states have enacted tax abatement programs
                            programs to provide financial incentives to the private     as Incentives to encourage rehabilitation efforts by
                            sector to encourage rehabilitation efforts, while           owners or by nonprofit or limited dividend private
                            others employ the police power to regulate standards.       corporations.
                               A new approach to fighting central city blight and
                            alleviating the critical shortage of urban housing is       Footnotes
                            urban homesteading. States and cities are joining
                            with the HUD pilot program to make abandoned units
                            and rehabilitation financing available to individuals.      1. AGB Reports, September-October 1975, "The Management of
                                                                                          Decline," Kenneth Boulding.
                            Wilmington, Delaware; Baltimore, Maryland; and              2. Michigan case study for the national growth report, Earl
                            Philadelphia, Pennsylvania were the first cities to ex-       Starnes, November 1975.
                                                                                        3. Ibld.
                            periment with urban homesteading; other cities and          4. Book of the States, 1975- 76 (draft), Council of State Govern-
                            states have followed their lead. In 1974, Minnesota,          ments, 1975.

                                                                                    33

                                  6.  Ibid.                                                                         21.  Ibid.
                                  6.  "A Survey of Economic Development Planning in the United                      22.  Op. cit., "Managing a Growth Explosion."
                                      States," paper by Joseph A. Kayne, Maryland Department of                     23.  Ibid.
                                      Economic and Community Development, June 20, 1975.                            24.  Louisville Courier Journal, "Alaskans Debate Offshore Oil
                                  7.  Op. cit., Michigan case study.                                                     Cievelopment," September 20, 1975.
                                  8.  Ibid.                                                                         25.  The Pacific States of America, Neal Peirce, W. W. Norton and
                                  9.  Energy Development in the Rocky Mountain Region:                   Goals           Company, 1972.
                                      and Concerns, Federation of Rocky Mountain States, Inc.,                      26.  "Blood, Toil, Tears and Oil," Wintrop Griffin, New York Times
                                      July 1975.                                                                         Magazine, July 27,1975.
                                  10. Ibid.                                                                         27.  Ibid.
                                  11. Op. cit., Annual Report, New England Regional Commission.                     28.  Address to Annual State Economic Development Council, Salt
                                  12. Op. cit., Kentucky's Response.                                                     Lake City, August 20, 1975.
                                  13. State Responses to the Energy Crisis, Council of State Gov-                   29.  The Oregonian, "Straub Stresses Effort Made to Disperse In-
                                      ernments, March 1975.                                                              dustry into Eastern Oregon," October 22, 1975.
                                  14. Ibid.                                                                         30.  Address to Joint Session, Washington State Legislature, Jan-
                                  15. Op. cit., Kentucky's Response.                                                     uary 13, 1975.
                                  16. Op. cit., State Responses.                                                    31.  Land Use Planning Reports, October 27, 1975.
                                  17. State Energy Information Systems: A Survey, National Gov-                     32.  "Adirondack Threat," editorial, New York Times, November
                                      ernors' Conference, July 1975.                                                1    5,1975.
                                  18. Washington State, March 1975, Office of Program Planning                      33.  Rutland (Vt) Herald, "Salmon Sets Policy on Growth Control,"
                                      and Fiscal Management.                                                             November 1975.
                                  19. "Energy Development and the Troubled West," (article) Rich-                   34.  Washington Post, "Court Cuts EPA City Pollution Plan,"
                                      ard Lamm, New York Times, July 31, 1975.                                         . October 29, 1975.
                                  20. Ibid.                                                                         35.  Op. cit., "Managing a Growth Explosion."

                                                                                                               34

                           Ill. Capacity to Manage                                    ment. Each federal program makes its unique de-
                                                                                      mands on state government in its perception of eligi-
                                                                                      bility, planning, organization, funding match, and
                           The Management Function                                    procedures. The Federal government,. by involving
                           The major growth issues that face state government         state and local government in its many programs, has
                           today cannot be dealt with through precise delega-         intensified the need for coordination.
                           tion of program responsibility within the functional         Too often weaknesses in state and local adminis-
                           organization of government. Economic recovery,             tration, coupled with inconsistencies in federal
                           energy, environmental protection, and community            guidelines, have resulted in fragmentation of activi-
                           development raise complex problems that transcend          ties and caused overlap, conflict, and waste. Con-
                           all jurisdictional assignments within state govern-        gress has justifiably looked -to the states to help
                           ment and among federal, state, and local levels of         rectify this confusion. In response, states are dem-
                           government. These issues affect and are affected by        onstrating a steadily expanding capability in state-
                           the activities of a multitude of government units, but     wide planning and coordination, the prerequisite to
                           cannot be regarded as the responsibility of any one        the effective administration of the diverse Federal
                           unit.                                                      programs.
                             States are responding to these problems created
                           by growth and change through the implementation of         MANAGEMENT CAPABILITY
                           policies, programs, regulations, and structural
                           changes that are designed to deal with specific prob-      State Planning Process
                           lems. They also delegate responsibilities and allocate     State planning is a composite of the functions of
                           resources to local levels of government to assist          many units of government. Where a process exists,
                           them in dealing with growth problems. In all these         state planning is the organized and continuous in-
                           measures, states are predominantly reactive, seek-         teraction of goal definition, problem analysis, policy
                           ing to resolve problems or at least to modify or al-       development, program design, resource allocation,
                           leviate their adverse consequences.                        and performance evaluation. Coordination at all
                             The states' longer range response to the chal-           stages involves all participating units and levels of
                           lenges of growth is through strengthening their over-      government. Among those states with a defined
                           all capacity to effectively function. To become less       planning process, different roles are assigned to dif-
                           vulnerable to change, states are attempting to Im-         ferent units but there is a clear delineation of re-
                           prove their ability to anticipate future trends and        sponsibilitles among the governor's executive staff,
                           events and to develop the management capability            state planning, community affairs, budget and line
                           to cope with unexpected crises. To this end, the           agencies, and regional and local units of govern-
                           states are increasingly focusing their attention on the    ment. How the organization chart establishes the
                           organization and procedures required for effective         structural relationships among these functions is
                           planning, policy development, fiscal management,           secondary to the mis  .sions assigned to them and the
                           intergovernmental relations, and government wide           ways in which they interact and interrelate with one
                           coordination.
                                                                                      another.
                           The Federal-State Partnership                                Every  state has its unique organization for plan-
                                                                                      ning reflecting its own objectives, strategies, and
                           To achieve federal domestic     policy goals, the Con-     agendas. The state planning director and the com-
                           gress depends on state and      local governments for      munity affairs director may both be executive as-
                           program design and management. Health care,                sistants to the governor. One or the other function or
                           crime control, housing, economic development,              both may have agency statu s. The I unction s are of ten
                           land use, and recreation are just some of the major        combined In one office or agency. In a number of
                           areas in which state and local governments have            states, the planning office is parallel to the budget
                           been asked to implement national planning and pro-         office within an agency of administration. Planning
                           gram objectives. There are few spheres of state gov-       and economic development are combined in sev-
                           ernment activity in which there is not federal involve-    eral states.

                                                                                   35

                         State Planning Agencies (Table IX)                         Agency, Rural Development Council, Interdepart-
                         The dominant emphasis in the emerging patterns of          mental Transportation Task Force, and Human Serv-
                                                                                    ice Council.
                         planning structure appears to be on the coordina-
                         tion of policy and program design     within state gov-
                                                                                    Planning and Budgeting
                         ernment and between state and local governments.
                         The structural variations reflect differing views of the   The association of planning with budgeting usually
                         management roles of the planning function, the             occurs within a department of administration or a de-
                         budget function, and the state-local relations func-       partmerit of finance. Wisconsin is characteristic of
                         tion. There are three basic forms of organization: (1)     the large group of states that have adopted this pat-
                         state planning, community affairs, and budget in sep-      tern. Under a Secretary of Administration, there is a
                         arate agencies; (2) state planning and community           Bureau of Planning and Budget divided into sections
                         aff airs 'together and budget separate; (3) budget and     for budget and program planning, statewide compre-
                         planning in the same agency and community affairs          hensive planning, management services, and ad-
                         apart. Most states use ,,some modification of one of       ministrative operations. The Budget and Program
                         these forms.                                               Planning Section has a budget operations unit and
                           Vermont is an example of a State where there is a        units for educational resources, human relations and
                         clear organizational distinction between the three         resources, environmental and commercial resources,
                         functions. State planning is in the,Executive Office of    and general government. The independent Depart-
                         the Governor, budget in the Agency of Administra-          ment of Loca"t A#airs and Development has re-
                         tion and community. affairs in the Agency of Develop-      sponsibility for,both regional and local planning.
                         ment and Community Affairs. The Vermont state                 With executive reorganizations in, 1974 and 1975,
                         planning officer has coordinative functions as sec-        the. pla'nning and budgeting relationship continued to
                         retary of the cabinet and administrator of Circular        undergo cha   Iqgeinseve@ states. The functions were
                         A-95. He chairs standing and ad"hoc interagency            united in Colorado, Kansas, and Idaho, but split apart
                         groups and he participates in budget hearings. The         in Connecticut, Ohio, and Kentucky.
                         Commissioner of Community Affairs administers
                         regional and local planning assistan@e.                    Interagency Coordinating Councils
                         Centralized Planning                                       At least 18 -states currently have interagency co-
                                                                                            ing councils of some sort. These councils take
                                                                                    prolinati
                         Community affairs and state planning are       combined    several different forrris: governor's cabinets or cabi-
                         in Minnesota's highly centralized planning     organiza-   pet subgroups, 'generally chaired by the governor and
                         tion. The office has divisions of development, trans-      made up exclusively of department heads; state plan-
                         portation, environmental planning,@, human resources,      ningr boards, established as an adjunct to the overall
                         health planning,' federal relations, financial and ad-     state planning process and, again, made up primarily
                         ministrative services, and local and urban affairs.        of agency heads,- and interagency clearinghouses,
                         The State Planning Agency provides staff support for       most frequently composed of lower level depart-
                         the Commission on Minnesota's Future which was             mental representatives and program officials. Their
                         established by the Legislature to propose a state          principal function's are 'to exchange information, to
                         growth and development policy. As in every state,          focus on common problems and, in some cases, to
                         the primary responsibility for program planning in         resolve conflicts among different agencies. The pri-
                         Minnesota lies with the line agencies. Functional          mary purpose of these bodies is to coordinate activi-
                         planning, the planning that gives direction and co-        ties which cannot be consolidated into a single de-
                         hesion to program planning is, in Minnesota, a shared      partment or agency.
                         responsibility; planners from the State Planning             The Most common function of these councils is to
                         Agency work with planners from the functional agen-        provide: -a -forum for the exchange of information
                         cles, in many instances from several agencies with         relevant to more than one agency, such as proposed
                         common or overlapping functional responsibilities.         new programs or projects. Most of the councils also
                         At the same time, the agency maintains very close          have responsibility for providing policy advice and
                         working relations with the Legislature and legislative     recommendations to the governor and state
                         staffs. Another approach used by the agency to             legislature.
                         broadly involve itself in state government is a system        Among,the states, Utah has one of the most highly
                         of "Interlocking directorates" through membership          developed' interagency coordination systems. The
                         on and staffing of interagency bodies such as the          Utah structure consists of interdepartmental groups
                         Manpower Council, Environmental Quality Council,           of state agency planners and decision makers or-
                         Council of Economic Advisors, Housing and Finance          ganized according to the interrelationships among-

                                                                                 36

                                                                                                            TABLE IX
                                                                            ORGANIZATIONAL LOCATION OF STATE PLANNING AGENCIES*

                            state                                      Agency.Name                            Separate       Governor's         Dept. of         Economic        Community       Other
                                                                                                             Department         Office       Administration     Development          Aff airs
                            ALABAMA                   Development Office                                                          X
                            ALASKA                    Division of Policy Development                                              X
                            ARIZONA                   Office of Economic Planning and Development                                                                     X
                            ARKANSAS                  Office of Planning                                                          X
                            CALIFORNIA                Off ice of Planning and Research                                            X
                            COLORADO                  Division of Planning                                                                                                            X
                            CONNECTICUT               Department of Planning and Energy Policy                    X
                            DELAWARE                  State Planning Office                                                       X
                            FLORIDA                   Division of State Planning                                                                    X
                            GEORGIA                   Office of Planning and Budget                               X
                            HAWAII                    Department of Planning and Economic                                                                             X
                                                       . Development
                            IDAHO                     Division of Budget, Policy Planning and                                     X
                                                        Coordination
                    0       ILLINOIS                  Bureau of the Budget                                        X
                            INDIANA                   State Planning Service Agency                                               X
                            IOWA                      -Office of Planning and Programming                                         X
                            KANSAS                    Division of State Planning and Research                                                       X
                            'KENTUCKY                 Office of State Planning                                                    X
                            LOUISIANA                 State Planning Office                                                       X
                            MAINE                     State Planning Office                                                       X
                            MARYLAND                  Department of State Planning                                X
                            MASSACHUSETTS             Office of State Planning                                                    X
                            MICHIGAN                  Department of Management and Budget                                                           X
                            MINNESOTA                 State Planning Agency
                            Mississippi               None                                                                        X
                            MISSOURI                  Division of Budget and Planning                                                               X
                            MONTANA                   Division of Planning                                                                                            X
                            NEBRASKA                  State Office of Planning and Programming                                    X
                            NEVADA                    Office of the State Planning Coordinator                                    X
                            NEW HAMPSHIRE             Office of Comprehensive Planning                                            X
                            NEW JERSEY                Division of State and Regional Plannin                                                                                          X
                            NEW MEXICO                State Planning Offic                                                        X
                         See footnote at end of table. (Table continued on next page)

                                                                                                                        TABLE IX-CONTINUED

                               state                                                 Agency Name                                     Separate           Governor's              Dept. of             Economic           Community            Other
                                                                                                                                    Department             Office           Administration          Development              Affairs
                               NEW YORK                        Division of State Planning                                                                                                                                                      X
                               NORTHCAROLINA                   Office of State Planning                                                                                             X
                               NORTH DAKOTA                    State Planning Division                                                                                                                                                         X 2
                               OHIO                            Department of Economic and Community                                                                                                       X
                                                                  Development
                               OKLAHOMA                        Office of Community Affairsand Planning                                                                                                     X
                               OREGON                          Intergovernmental Relations Division                                                           X
                               PENNSYLVANIA                    Office of State Planning and Development                                                       X
                               RHODE ISLAND                    Statewide Planning Program                                                                                           X
                               SOUTH CAROLINA                  Office of Community Development                                                                                      X
                               SOUTH DAKOTA                    State Planning Bureau                                                                          X
                               TENNESSEE                       State Planning Office                                                                          X
                               TEXAS                           Division of Planning Coordination                                                              X
                               UTAH                            Office of State Planning Coordinator                                                           X
                               VERMONT                         State Planning Office                                                                          X
                               VIRGINIA                        Division of State Planning and Community Affairs                                                                                                                X
                               WASHINGTON                      Off ice of Program Planning and Fiscal                                                         X
                                                                  Management
                               WEST VIRGINIA                   Office of Federal-State Relations                                                              X
                               WISCONSIN                       State Planning Office                                                                                                X
                               WYOMING                         State Planning Office                                                                          X

                                *SOURCE: Prepared by the Council of State Governments. based on a 1975 survey of state 701 planning activities. Data compiled October 1975.
                                  Located in State Department;
                                  Located in Department of Accounts and Purchases
                                3 Mississippi has no single agency designated as the State Planning Agency. Planning Functions are fragmented among several state offices.

                            activities of different agencies. These groups of de-       regional organization. There are 455 designated
                            cision making and planning officials work on prob-          regional councils in 44 states. In 1973, 44 states had
                            lems of planning for the delivery of government serv-       designated substate district systems with a total of
                            ices that concern two or more, agencies. The highest        488 districts, but 25 percent of the districts had not
                            level of the structure is the State Planning Advisory       been organized with a governing body and staff to
                            Committee composed of department directors, the             carry out assigned responsibilities.
                            budget director, and the state planning coordinator.          Only Alaska, Delaware, Wyoming, Nevada, and
                            At this level, matters of policy determination, conflict    Rhode Island do not have substate district arrange-
                            resolution, and program integration are considered.         ments. Of these, geographically small Delaware has
                            The purpose of the structure is to make possible            one metropolitan planning region, with planning and
                            communication upward from the need s-asse ssment            intergovernmental coordination for the balance of the
                            level and downward from the policy level. The key           state being done by the state planning office. With
                            objective is to identify potential conflicts among          four regional organizations in Nevada and two in
                            agencies at the earliest stage of planning, rather          Alaska and increasing land use problems in both
                            than to attempt to deal with conflicts through a review     states, these states continue to: evaluate the feask
                            of projects already at the implementation stage.            bility of establishing substate districts. In Hawaii, the
                              Utah's state level structure parallels a similar or-      four counties (the only units of local government)
                            ganization of local units of government. The Gov-           serve as the substate distrlicti and the state has re-
                            ernor's Advisory Council on Local Affairs is made up        cently established a state' level intergovernmental
                            of 21 city and county elected officials invited by the      council to assure maximum input and coordination.
                            Governor. to represent their respective Associations          Among states and often within states there is
                            of Government.'                                             radical variation in the productivity, stability, and
                                                                                        scope of activity of regional planning organizations.
                            Community Affairs Agencies (Table X)                        Almost all states approach regional organization
                                                                                        with considerable flexibility. Membership and sup-
                            A significant response of the states in   recognition of    port by counties and municipalities is voluntary.
                            their need to improve their relations with local gov-       Makeup of governing boards may vary by organiza-
                            ernment has been the creation of state community af-        tion, although the great majority of states now re-
                            fairs agencies. More than 20 states have established        quire that elected officials predominate. The partick
                            agencies in which assistance to local communities             t* n of elected officials appears to be a prerequi-
                                                                                        pa io
                            is the dominant function. In many others, the func-         site to a strong regional planning role in state-local
                            tion is combined with state planning, economic de-          relations.
                            velopment, or similar compatible activities. Such
                            agencies provide technical assistance and services,         Scope of Programs
                            and a means of communication between levels of
                            government.                                                 The scope of program activity varies within as well as
                              Community affairs agencies serve as conduits for          among states. Regional organiz       -ations in several
                            federal categorical grants. With the new demands            states have a largely uniform program scope in-
                            upon local governments made by the 1974 Housing             cluding federal planning assistance programs in
                            and Community Development Act to initiate com-              health, manpower, aging, land use, housing, eco-
                            munity development programs, housing assistance             nomic development, criminal justice, and transporta-
                            plans, and land use plans, the assistance and co-           tion. There is usually some variation between metro
                                                                                        and nonmetropolitan districts. In others, land use
                            ordination programs of community affairs agencies
                            have become important components of effective               and community development are the predominant
                            community development.                                      concerns. Almost all regional organizations serve
                              Community affairs officials usually consider them-        the A-95 clearinghouse function.
                            selves as intermediaries between state and local gov-         Across the South and Southwest, substate dis-
                            ernments, the advocates of the state point of view in       tricts established for economic development pre-
                            dealing with local officials, and advocates of the local    dominate. In states such as Georgia, Kentucky, and
                            point of view in dealing with state officials. The am-      Texas, the districts represent very strong associa-
                            bivalence of the role creates problems but is un-           tions of local governments, generally have uniform
                            avoidable.                                                  work programs, and are engaged in a very broad
                                                                                        spectrum of activities. Across the nothern tier of
                            R .eglonal Planning Organizations (Table XI)                states, the picture is mixed among the states and
                                                                                        within them. California and Washington each have a
                            For a great many states, the keystone in state-local        couple of very active and potent regional organiza-
                            cooperation and coordination is the multifunctional         tions, while other areas of the state either are with-

                                                                                      39

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                         x1XI  1XIX   x   x x x      x x     1 >4 x x x x x xIx  x   Cooperation_
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                                                                        x  Ix x xI   Personnel
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                         x   x  x x   x     x x   X  x x       x x  x x XI XI >< X. x x I Financial
                                                                                     Assistance
                               I   I                  I  X1 X1
                         x x x  x     x     x x      x x         x      x            Function Plan.
                               I   I                  I  xIxI              I xx I x X ningAssalistance
                         x x x  x x   x   x x x      x x x x   x x    x              Local Planning
                          I       I        I          I I    I      I   x  XI X, XI X. xAssistance
                         x X, x x x   x     x x      x x x >, IX, X1    .x xI >,I xxIxR:glonal Planning
                          I    I                      I                              C ordination
                         x x x  x x   x   x x x x      x x x   x x  x x x  I XI x>,I xResearch and
                          I    I                  ><I X1     I      I                Information
                         x   x  x x   x     x x x      x X1  I   x x x Ix x1XIx  xIx Housing Programs
                         x x x x      @,j x x X. x X   x       x x x               x Economic Deve p-
                          I                               I  I       1XIX xIxIxI  I   mentProgramelo I
                         X1 X, I X1I   I  x  1XI                    LxJ-xI I I jxjx@Antl.-Poverty  I

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                                                    x x    x  X     x X x    xx
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                                                    X x    xx x               x  Personnel
                                                 a               I 1XIX          Training
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                                                                      X
                                                                                 Supervision

                                                                                 Financial
                                                    x x    xx x x x x X x    xx
                                                                     I           Assistance
                                                      x    x  x X x x   x    xx  Functional Plan-
                                                                                 ning Assistance
                                                 0                               Local Planning
                                                    X x    xx x X   x x x    xx
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                                                 3
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                                                    x x    Xx X x x   X x    xx
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                                                    X x    xx x x x x x x    xX
                                                                                 Information

                                                            x                 x  Housing Programs
                                                             1><I>,l lxl>,
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                                                                                 ment Programs

                                                            x x     x x       X  Anti-Poverty

                                                                      TABLE XI
                                                                SUBSTATE DISTRICTS*

                         State                              Designated a              Organized b               Funded c
                         ALABAMA                                12                        12                       12
                         ALASKA.                                 0                          0                        0
                         ARIZONA                                 6                          6                        6

                         ARKANSAS                                8                          8                        8
                         CALIFORNIA                             10                          4                        4

                         COLORADO                               13                        13                       13
                         CONNECTICUT                            15                        15                       15
                         DELAWARE                                0                          0                        0 d
                         FLORIDA                                10                        10                       10
                         GEORGIA                                18                        18                       18
                         HAWAI 1                                 4                          4                        40
                         IDAHO                                   6                          6                        6
                         ILLINOIS                               14                        14                       14

                         INDIANA                                17                        17                       17
                         IOWA                                   16                        15                       15
                         KANSAS                                 11                        11                       11
                         KENTUCKY                               15                        15                       is
                         LOUISIANA                               8                          8                        8
                         MAINE                                   8                          8                        8
                         MARYLAND                                7                          5                        5

                         MASSACHUSETTS                          13                        13                       13
                         MICHIGAN                               14                        14                       14
                         MINNESOTA                              13                        13                       13
                         MISSISSIPPI                            10                        10                       10
                         MISSOURI                               20                        20                       20
                         MONTANA                                12                        12                       12
                         NEBRASKA                               26                        16                       14
                         NEVADA                                  0                          0                        0
                         NEW HAMPSHIRE                           6                          6                        6
                         NEW JERSEY                             10                        10                       10
                         NEW MEXICO                              6                          6                        6
                         NEW YORK                               11                        11                       11
                         NORTH CAROLINA                         17                        17                       17
                         NORTH DAKOTA                            8                          8                        8
                         OHIO                                   15                        10                         8

                         OKLAHOMA                               11                        11                       11
                         OREGON                                 14                        13                       13
                         PENNSYLVANIA                           10                        10                       10
                         RHODE ISLAND                            0                          0                        0
                         SOUTH CAROLINA                          6                          6                        6
                         SOUTH DAKOTA                            6                          6                        6
                         TENNESSEE                               9                          9                        9
                         TEXAS                                  21                        21                       21
                         UTAH                                    7                          7                        7
                         VERMONT                                13                        13                       13
                         VIRGINIA                               22                        22                       22
                         WASHINGTON                             13                        11                         4f

                      (See footnotes at end of table) (Table continued on next page)

                                                                          42

                                                                         TABLE XI-CONTINUED

                               State                                Designated                   Organized                    Funded
                               WEST VIRGINIA                             11                           11                         11
                               WISCONSIN                                  8,                           8                          8
                               WYOMING                                    0                            0                          0

                               -.Compiled by the Council of Slate Governments.
                               a Districts have been officiaUy designated by the governor
                               b Di s1ricts have begun internal organization and, in some cases begun acquiring staff
                               C'Distri cts receive state appropriations or state pass-through of federal fund s
                               d,Considered too small to dh,lde into substate districts
                               aFour counties same as substate planning organizations
                               Has separate designations for local areawide planning and coordination of federal-state activities

                               out councils or have largely inoperative groups. This   purpose areawide planning agencies requesting fed-
                               is a pattern common to states across the country,       eralfunding.
                               although almost every state is actively promoting          'With improved organizational and administrative
                               regionalism and investing increasing activity and       capability, more substate districts are attempting to
                               funds in strengthening regional structures.             integrate planning activities to provide policies and
                               Just as regional organizations vary, so do state at-    criteria for reviewing and coordinating development
                               titudes toward them. The question of whether regional   activities. The State of Georgia now requires an an-
                               organizations should represent local interests, state   nual development plan to encourage the evaluation
                               interests, or both, concerns state officials. However,  of integrated areawide planning and management
                               where regional organizations are most effective and     capability. Minnesota and Louisiana are studying
                               powerful, they are recognized as representing local     ways of integrating federally funded planning pro-
                               interests albeit in the administration of state and fed- grams to facilitate policy and program integration.
                               eral programs. They are considered to be locally con-      The improved capability of substate, districts ap-
                               trolled and their programs compatible with local        pears to offer increased opportunities for intergov-
                               goals and concerns.                                     ernmental management of growth through effective
                               Most states add a state contribution to the local       leadership by the states. With recent revision of OMB
                               and federal funds that support regional organiza-       Circular A-95, more states appear to be discovering
                               tions. There is a direct relationship between the       new opportunities for exercising the needed leader-
                               amount of state support and the degree of state in-     ship.
                               fluence over regional policy. The warmth of relation-
                               ship between state and region also depends on the       Political Opposition
                               extent to which the state invites regional participa-   In Wisconsin, as in several other states where plan-
                               tion in state policy development.                       ning councils have been in political trouble, Gov-
                               Many states would like to devolve more powers           ernor Patrick J. Lucey has recently moved to breathe
                               and programs to the regional level where there is
                               more potential for responsiveness to differing local    new life into regional organization. In announcing his
                               needs. Moreover, state bureaucracies are sensing        programs in March 1975, Governor Lucey wrote:
                               increased legislat live and public opposition to the         An alarming number of people have been at-
                               concentration of powers and funding at the state           tacking regional planning In Wisconsin and charg-
                               level.                                                     ing that it is a state scheme to impose greater
                                                                                          centralization and control over local government.
                               Umbrella Organizations                                     In fact just the opposite is true. I hope that my
                                                                                          proposal to allow local governments to nominate
                               In 1973, the National  Advisory Committee on In-           the complete membership of the commissions will
                               tergovernmental Relations recommended the adop-            make clear that commissions are intended to
                               tion of state policies and action to foster creation of    serve the interests of local government. I also hope
                               single, multipurpose, multijurisdictional regional         that town, village, city and county elected officials
                               councils called "umbrella multijurisdictional organi-      will join with me in dispelling the false charges
                               zations" or U MJOs. By mid 1970, 28 states had taken       which are being made about regional planning and
                               action to recognize a single substate body to be re-       in explaining the vital role the commissions can
                               sponsible for comprehensive planning for its region.       play.
                               The LIMJ0 concept has been encouraged by a 1973                 Regional planning, as I see it, is an extremely
                               revision in Part IV of OMB Circular A-95 which re-         effective way for local interests and points of view
                               quires memorandums of agreement on coordination            to be expressed. It offers one of the best ways for
                               between designated substate districts and single           a strong local interest to be voiced when state or.

                                                                                    43

                           federal decisions are being made. Regional plan-         currently revising long range comprehensive develop-
                           ning allows 'local power' to be mobilized and            ment plans to serve as guidelines for programs and
                           brought to bear on state and federal policy. The         project funding. Though the primary purposes of the
                           collective voice of local governments, expressed         economic development commissions are economic
                           through an adopted areawide plan, is a very effec-.      and public investment planning, they also provide ef-
                           tive way to influence where a state or federal high-     fective forums for governors to develop policy posi-
                           way is located or where an industrial site will be       tions and to articulate regional concerns to federal
                           developed.2                                              policyrnakers.
                           The Governor's emphasis that regional organiza-             In the last two years, several regional commissions
                         tions represent local rather than state interests re-      have given primary attention to the particular energy
                         flects a prevailing attitude among state officials         and employment problems common to the region.
                         across the Nation. While the states have provided          In energy dependent Now England, for example, the
                         the legal framework for regional organizations, and        New England Regional Commission has developed
                         prescribed the geographic division of the state, the       short range programs of fuel rationing and conserva-
                         decision to associate has been, in most instances,         tion, as well as addressed long range efforts at policy
                         left to local government initiative. Regional organiza-    planning, technical assistance in energy resource
                         tion has been promoted by the states as serving local      management, and cooperative arrangements with
                         interests. Nevertheless, state interests are served,:      Canada to increase fuel supply. In contrast, the Old
                         particularly when regional councils are the vehicle for    West Regional Commission provides financial and
                         consolidation of management or at least coordina-          technical assistance to the states and communities
                         tion of federal assistance programs that the, state        in an energy producing area to meet the environ-
                         must administer on an areawide basis.                      mental, social, and economic impacts associated
                                                                                    with accelerated energy resource development. In
                         Interstate Regional Cooperation                            both energy producing and energy dependent areas,
                         Multistate regional development commissions and            the regional commissions have contributed to state
                         councils provided member states with a mechanism           growth management capability by contributing funds
                         to deal with growth problems which transcend juris-        for staff development, public investment plans, eco-
                         dictional boundaries. As forums for policy planning        nomic development models, and citizen participation
                         and development. these regional institutions assist        programs.
                         in the -coordination of individual state plans and pro-    State Initiated Programs
                         grams which affect the quality of life throughout the
                         region. States have joined together at the initiative of   Of the numerous and varied state initiated regional
                         the Federal government as well as at the initiative of     councils, the Federation of Rocky Mountain States,
                         member states. The federally sponsored economic            composed of the eight states in the region, and the
                         development groups are the Appalachian Regional            Southern Growth Policies Board, with 14 member
                         Commission, with 13 member states; the New Eng-            states, are strongly oriented to growth policy and
                         land Regional Commission with six states; the Costal       growth management. In the Federation, the basic
                         Plans, with three South Atlantic states; the Ozarks        units are the functional councils with public and
                         Regional Commission, with four states; the Old West        private representatives. Each council identifies and
                         Regional Commission, with five northern Great Plains       develops regional agreements on key issues, de-
                         and Upper Rocky Mountain States; the Four Corners          fines policies on those issues, and proposes multi-
                         Regional Commission, serving four southern Rocky           state policies and programs to address the issues. W
                         Mountain States; and the Pacific Northwest, with           1974-75, the Federation concentrated on common
                         three member states. Although. member states con-          goals and concerns in the area of energy develop-
                         tribute funds to the commissions, the principal sup-       ment.
                         port is federal and includes capital investment fund-      . An offshoot of the Federation and the Old West and
                         ing.                                                       Four Corners Regional Commissions is the ten-state
                           The Appalachian Regional Commission (ARC),               Western Governors' Regional Energy Policy Office.
                         created under separate legislation from the other          The mission of the Office is to identify those energy
                         economic development commissions, has devoted              areas in which states have basic agreement and to
                         most of its efforts to highway development as a            provide a mechanism for cooperation with the var-
                         meansof opening the area to economic development.          ious federal agencies involved in energy decisions.
                         The remaining seven commissions, organized under              The Southern Growth Policies Board was formed in
                         Title V of the Public Works and Economic Develop-          1972 as a regional agency to provide cooperative ef-
                         ment Act of 1965, have less authority and funding          forts to encourage the conservation and develop-
                         than does ARC, but they have developed and are             ment of the region's human and natural resources.

                                                                                 44

                                                                                    TABLE XII
                                                                     STATE GROWTH PLANNING STATUS

                                1. Completed Growth Plans or Policy Guidelines
                                   Connecticut (1975)                                                                        Louisiana (1974)
                                   Florida (1975)                                                                            Maryland (1975)
                                   Hawaii (1975)                                                                             Missouri (1974)
                                   Wisconsin (1974)                                                                          Oregon (1975)
                                   Vermont (1973)                                                                            North Carolina (1975)
                                   Iowa (1974)                                                                               Rhode Island (1975)
                                   Kansas(1975)                                                                              Washington (1975)
                                   Kentucky (1974)                                                                           Pennsylvania (1975)
                                   South Dakota (1975)

                                2. On-going Public Commissions and Processes
                                   Alabama                                                                                   Maine
                                   Alaska                                                                                    Massachusetts
                                   Arizona                                                                                   Minnesota
                                   Connecticut                                                                               Mississippi
                                   Delaware                                                                                  Montana
                                   Hawaii                                                                                    New Jersey
                                   Idaho                                                                                     North Carolina
                                   Illinois                                                                                  South Dakota
                                   I ndlana                                                                                  Utah
                                   Iowa                                                                                      Wisconsin

                                3. On-going Private Commissions and Processes
                                   California Tomorrow
                                   New Hampshire Tomorrow
                                   Institute of Public Alternatives (New York)
                                   Oregon Tomorrow Foundation
                                   Vermont Tomorrow

                             'SOURCE: Council of state Governments survey. Oats compiled October 1975.
                                Complete plans or guidelines have not been officially adopted in all states,

                             Regional committees were formed in 1974 to advise                In general, the concept of land use planning has
                             the Board in the areas of growth management, hu-              had its focus changed from one aimed at directly
                             man resource development, land and natural re-                controlling growth to one of coordinating develop-
                             sources, and transportation. A Commission on the              ment consistent with environmental and land use
                             Future of the South, created by the Board in 1974,            concerns. State initiatives are directed to coordinat-
                             produced the first statement of proposed regional             ing development through such measures as power-
                             objectives for member state consideration and im-             plant siting, environmental regulations, capital im-
                             plementation. The regional objectives were supple-            provements planning, floodplain regulations, and
                             mented in 1975 with recommended methods to im-                mandated guidelines for local land use planning and
                             plement land and natural resources programs.                  control. This approach is also reflected at the fed-
                                                                                           eral level In HUD, EDA, and EPA guidelines and in-
                                                                                           teragency agreements which provide for community
                             GROWTH POLICY DEVELOPMENT                                     development and capital improvement coordination
                             Now Planning Perspectives (Table XI 1)                        with uniform land use plans and environmental
                                                                                           standards.
                             In many states in the mid-1970s, economic and en-                On the other hand, state economic planning which
                             vironmental circumstances have significantly altered          has tranditionally concentrated on industrial location
                             the role and perspective of state planning. State plan-       and expansion is now becoming defined In terms of
                             ning Is evolving Into a concept of growth policy plan-        optimization of economic benefits, environmental
                             ning and management. This is also reflected In the            quality, and resource conservation. In this context,
                             changing concepts of land use and economic plan-              states see themselves as Instruments of change that
                             ning.                                                         can allocate resources In order to stimulate develop-

                                                                                        45

                         ment consistent with desired land use and environ-         not only be useful in themselves, but will also have a
                         mental quality while maximizing social benefits.           cascade-like effect, causing other useful events.
                           Both land use planning and economic planning are           The Kentucky approach involves a detailed and
                         evolving toward a concept now being referred to as         intricate process designed to (1) collect and organize
                         growth policy planning and growth management.              existing data and identify information gaps; (2) re-
                         Consistent with this approach, 17 states have some         organize the accumulated information in order to
                         form of official growth plan or policy guideline.          identify those key elements that can guide the state's
                         Twenty-one states have established state level growth      growth and development; and (3) examine the man-
                         commissions or processes. Relatively few of these          agement structure needed to carry out the objectives
                         statements or studies have gone far beyond the             laid in the strategy design.
                         recognition of need and the identification of some           Maryland is developing a somewhat different
                         key components over which states may exercise              strategic issues method. Their process includes is-
                         initiative. In the handful of states that have developed   sues identification, issues development, issues reso-
                         sophisticated growth planning processes, three gen-        lution, and implementation. The process has an ex-
                         eral types can be identified: (1) alternative futures      plicit "action oriented mission," designed to result in
                         analysis; (2) strategic issues identification; and (3)     an array of legislation, new programs, or public in-
                         public investment planning.                                investment of specific resources.
                           The "alternative futures" approach involves a con-         The third system is "public investment planning"
                         siderable number of goals and objectives tested            employed in Pennsylvania. This approach requires
                         against alternative future scenarios. These scenarios      the projections of future growth potentials, popula-
                         are based on a range of alternatives from a stabilized     tion, income, and social service requirements. These
                         economy to highly accelerated economic growth              "probable" indicators of future trends are then
                         rates. From the results of testing the alternatives,       matched with a set of "desired" expectations. The
                         state officials can design a program to encourage a        gap between the projections and desires represents
                         desired growth pattern, that Is, attempt to moderate       those areas which need public attention and invest-
                         and change past trends and location of growth by           ment. The culmination of the program is the identifica-
                         deliberate policy implementation. The 1975 Hawaii          tion of funding sources for future investment and the
                         Legislature passed a major growth policies plan bill to    rethinking of those adopted development targets for
                         guide state development on the basis of a program          which resources will be unavailable.
                         developed by the state administration using this
                         technique.                                                 State Investment Planning
                           The "Utah Process" is a technique for analyzing          Investment in public facilities is often instrumental in
                         and projecting economic and demographic data into          determining land use patterns, resource management
                         alternative futures scenarios. Through the use of          opportunities, and private investment, patterns. How-
                         computer-based projection and allocation models,           ever, in the planning and budgeting process, public
                         the Utah Process is employed to identify important         projects are usually not examined in the light of their
                         consequences of large scale developments and               impact until late in the design stages after many of
                         events that are proposed or may be anticipated. "Al-       the essential decisions on size, timing, type, and lo-
                         ternative futures" are developed through testing dif-
                         ferent combinations of developments and events        forr cation have already been made.
                         their impact on the state's base demographic and             To improve the investment decision making proc-
                         economic projections. Arizona is presently develop-        ess in Vermont Governor Salmon issued Executive
                         ing a similar approach based on an economic and            Order #2 on public capital investment. The objective
                         environmental trade-off model.                             of the order was two-told. First, the Governor wanted
                                                                                    agencies to give more timely consideration to the re-
                                                                                    view of development not only on its environmental
                         Strategic Issues Analysis                                  impact, but also for the impact it might have on fu-
                         The second approach is the "strategic issues" tech-        ture growth. A second reason for the issuance of the
                         nique, which is currently in its embryonic stages in       order was the concern that public funds be spent as
                         Maryland and Kentucky. This process focuses on             effectively as possible. Few investment, decisions
                         those key problems which, if eliminated, would have        affect only a single agency; more often one facility
                         the greatest impact on the state economy. The              may require or enhance the investment in another.
                         strategic approach assumes that of all things that         Sometimes lack of coordination in location or timing
                         might be done under the heading of "development,"          or capacity of facilities may result in duplications,
                         there are a relatively small number of truly critical      early obsolescence, or actual conflicts, all of which
                         actions. If identified and accomplished, these will        are expensive for the taxpayer. Another aim of the

                                                                                 46

                             order, then, is to see that the decision making proc-        ductions apply to the personal income tax rather than
                             ess is more closely coordinated among state                  directly to the property tax payment.
                             agencies.                                                       Other reforms of the property tax structure in-
                                                                                          clude tax relief to families which appear to the
                             Property Taxation                                            shouldering an undue financial burden, which en-
                                                                                          courages them to seek alternate uses or subdivide
                             The role of the property tax in determining growth and       their property. The most common approach to this
                             development patterns is a concern of many states             relief is the circuit breaker, in which a property tax re-
                             which are seeking to influence private sector and            duction, an income tax credit, or a cash rebate is
                             municipal decisions relating to the location of de-          granted to property owners qualifying under legislated
                             velopment. There is a growing trend among state              guidelines. The guidelines are generally tied to in-
                             governments to try to balance and diversify revenue          come ceilings and may have special allowances for
                             sources. While this trend has diminished state and           the elderly and the handicapped. Over one-half of the
                             local reliance on the property tax, this source re-          states have gone to the circuit breaker as a means
                             mains the greatest individual contributor of income          of providing tax relief. A somewhat different approach
                             for state and local governments. For 1974, property          to the same problem was enacted by Florida in 1974.
                             taxes accounted for 35.5 percent of the total revenue        The law requires public review of proposed increases
                             of these government   S.3                                    in property tax rates.
                               The power to levy property taxes has, in most                 Another problem that arises from the local ad-
                             states, been delegated to local units of government.         ministration of property taxation is the inequitable
                             Local communities are therefore able to define and           variation that may exist in assessment practices
                             fund their own service needs and consequently in-            across jurisdictions. To overcome this, Hawaii,
                             fluence the types and location of new growth. The            Maryland, and Montana have instituted centralized
                             fact of local control of property taxation, while useful     state administration. This centralized mechanism
                             for maintaining local leverage over private growth           enables the state to directly supervise property as-
                             decisions, also permits disparities to occur due to          sessments, the maintenance of records, and the
                             market and development pressures. So, in addition            qualifications of assessors in order to ensure a more
                             to trying to balance their sources of revenue, states        equitable application of the taxation process.
                             have also in recent years begun major efforts to try to
                             bring reforms to the property tax structure.                 Citizen Participation
                               The conversion of agriculturally productive land to        "The challenge before the Legislature this year is to
                             urbanized development is one of the most serious
                             and recognized symptoms of the flaws in the property         begin to establish a comprehensive growth policy,"
                             tax structure. In direct response to this problem, 42        Governor Daniel J. Evans told the Washington State
                             states have adopted some form of differential property       Legislature as it convened for its 1975 session     .4  The
                             assessment to ease the tax pressures on agricultural,        Governor proposed a package of measures inspired
                             land near urban areas. Seven states (Michigan,               by the result of his program to involve citizens in the
                             Nebraska, Nevada, Missouri, Ohio, Oklahoma, and              determination of the direction of state growth and
                             South Carolina) initiated their programs during the          development for the coming decade.
                             past biennium, while Pennsylvania added major                   The Alternatives for Washington is the citizen par-
                             amendments to its existing program of deferred tax-          ticipation element of the State's long range policy
                             ation in 1974.                                               planning process which, in turn, is a component of
                               Of the three forms of differential assessment, de-         Washington's Program Decision System of budget,
                             ferred taxation is the most prevalent with 25 state ad-      preparation.
                             herents. Such programs involve the assessment of                In August 1975, Governor Evans presented the
                             farm property based on its current use, as opposed to        published recommendations of the Alternatives state-
                             its potential value, and impose tax penalities on            wide task force and announced that the program
                             owners if the land is taken out of farm use. Preferen-       would continue, saying:
                             tial assessment, which 13 states have adopted, is a               It is very easy to selecta rather utopian future, to
                             system of use-value assessment without penalitles               listall of the goals we would like to see achieved. It
                             for changing the use of the land. Five states employ            is quite another thing to recognize the costs of get-
                             the restrictive agreements form of differential as-             ting to those goals. And phase two will deal with the
                             sessment, in which the land owner agrees not to                 trade-off s-the policy trade-off s and the cost trade-
                             change the use of his land for a certain period of time         off&--which are necessary in order to achieve the
                             in exchange for tax concessions. In Michigan, the               goals which people have stated that they wanted. I
                             most recent state to adopt this system, the tax re-             suspect that in the course of phase two we may

                                                                                       47

                             find that there are some changing opinions of              mental groups. The Commission began meeting in
                             people, a recognition that if the cost is too high or      October 1973 and must conclude its work by June 30,
                             the policy is too difficult, they may choose to            1977. It sets its own agenda. It has divided itself into
                             modify orchange the ultimate goals they seek.5             committees on natural, human, man-made, and gov-
                          The Governor said he was asking citizens to attempt           ernmental environments and is focusing on the inter-
                          to measure the trade   ,-offs and costs of their proposals    ac 'tion of these environments with people. Out of their
                          in order to provide guidelines to the executive and           discussion is to come analysis of alternative futures
                          Legislature foe a sound Way of planning specific ac-          and of what is needed to achieve them in time for
                          tions "to build the kind of state we seek."                   consideration by the 1977 legislative session.
                             Meanwhile, within the Evans administration, a                 In January 1975, the Minnesota State Legislature
                          systematic effort is under way to analyze current             joined with the State Planning Agency and the Com-
                          state policies in the light of the publicly endorsed          mission on Minnesota's Future in sponsoring a three
                          preferences that were reflected in survey responses,          day legislative symposium, Minnesota Horizons. The
                          and the state goals that were formulated by the area-         seminar provided the opportunity for the legislators
                          wide and statewide Alternatives groups. This proc-            to particip'ate in an extensive review of the significant
                          ess will lead, beginning in the late fall, to consulta-       issues confronting the state and how these issues
                          tions with state agencies.on their policy directions by       could be addressed. Members of the Comriiission,
                          the state planning staff of the Office of Pro       ' gram    citizen experts, and members'of the state planning
                          Planning and Fiscal Management. Under the state's             staff briefed the Legislature on the status of the
                          integrated planning and budgeting process, the agen-          State-its people, its economy, its natural and man-
                          cies must develop a program framework for their               made env.ironments-and examined important trends
                          budget requests, working wit      Ih the 'state planning      and developments that could be expected to influence
                          staff to assure that agency planning is consistent with       the State's future.
                          broader administration goals and policies. The results
                          of the Alternatives program will be used as a frame-          Legislative Initiatives
                          work for the consideration of the direction of agency
                          planning both in the short term-the FY '77-79 bud-            In Florida, the 1974 session of the Legislature came
                          get-and for the next ton yeaes.1                              directly to grips with fundamental policy issues in the
                                                                                        consideration and passage of a "concurrent resolu-
                          Looking to the Future                                         tion adopting a policy on growth." The Speaker of the
                                                                                        House was the driving force behind the effort, in-
                          A comparable effort to engage citizens in the plan-           structing every committee to make growttl policy its
                          ning process is being undertaken in Minnesota. The            priority focus and to relate all other programs to
                          Commission on Minnesota's Future was established              growth policy. The Division of State Planning provided
                          by law in 1975 "to prepare, for considerati6n.by the          information and analysis, but the formulation of the
                          Governor and the Legislature, a proposed state growth         policy statements was done by the legislators. The
                          and development strategy; to prepare reports as-              statements range from "quality of life" to "local re-
                          sembling relevant information regarding the State's           sponsibility" to "sound economy." For each area of
                          future; to examine the long range plans of. state de-         concern, several policies were enunciated, restraints
                          partments and agencies, @@   including the University of      acknowledged, and alternative implementing actions
                          Minnesota, state colleges and junior colleges, and to         proposed. The resolution is intended as a framework
                          assess their possible impact on state growth and de-          for legislative action in the future and as a broad
                          velopment, and to report to the Governor and the              policy guide for state and local governments. The
                          Legislature at regular intervals on the development           growth policy provided for annual review. It will be
                          implications of major state decisions." 7 The State           the responsibility of the Legislature to accomplish
                          Planning Agency was instructed to provide staff               this. The Division of State Planning, working in con-
                          support and a joint legislative committee was as-             cert with  legislative committees is to provide the
                          signed to review commission reports, evaluate al-             means and assistance leading to this annual review.
                          ternatives, identify legislative priorities, and "develop        In September 1974, Governor Reuben Askew is-
                          a planning capability consistent with the task of this        sued an Executive Order directing the Division of
                          commission."                                                  State Planning to study and develop methods to im-
                             The Commission is made up of 66 members in-                plement the policies established by the Legislature
                          cluding legislators, chairmen of regional planning            and requested the cooperation of all state agencles.in
                          commissions, and 40 citizens appointed by the Gov-            the development of plans and recommendations to
                          ernor from lists of nominees solicited from political         the Legislature to implement its objectives. An Im-
                          parties, labor, agriculture, industry, and environ-           plementation Report issued in April 1975 indicated

                                                                                     48

                                  actions required by the Legislature and the agencies               3.  State Actions 1974: Building on innovations, Advisory Com-
                                  and reported on progress toward accomplishing each                     mission on Intergovernmental Relations, Washington, 1975.
                                                                                                     4.  Op. cit., State of the State Address.
                                  step.9                                                             5.  Transcription of news conference, August 21, 1975.
                                                                                                     6.  "Washington Asks Its Citizens to Choose the State's Future,"
                                                                                                         Council of State Governments, October 1975, (case study for
                                  Footnotes                                                              1976 National Growth Report).
                                                                                                     7.  Minnesota Statutes 1973, Chapter No. 741.
                                                                                                     8.  ibid.
                                  1. Op. cit., "Managing A Growth Explosion."                        9.  "An Explicit Growth Policy-Now What?," Earl M. Starnes,
                                  2. Press release, Office of the Governor,   State of Wisconsin,        Council of State Governments, (case study for 1976 National
                                    March 1975.                                                          Growth Report).

                                                                                                  49

                             IV. Defining Growth Objectives                                 In Pursuit of Ouality
                                                                                            The discontinuities of the present and the uncertain-
                             Aspirations and Realities                                      ties of the future have led to diminished expectations
                             Legislators in Florida and Hawaii, state planners in           of growth and benefits from growth. Moreover, the
                             Massachusetts and Colorado, citizen groups in                  national concern with environmental quality that de-
                             Washington and Minnesota, commissions and com-                 rived from the pollution and urban crises of the 1960s
                             mittees in states throughout the Nation are attempt-           has been reinforced by the growing realization in the
                             ing to define growth policies for their states. While for      mid-1970s that the energy crisis is a symptom of the
                             each state there are special concerns and points of            long-term problem of the exponentially increasing
                             emphasis-reflecting the great diversity among the              rate of consumption of finite resources. Reflecting
                             states-there are strong common threads that have               these converging economic and environmental
                             the potential of being woven into the fabric of a na-          forces, state growth policy statements are increas-
                             tional growth policy.                                          ingly emphasizing qualitative change-the improve-
                               These are expressions of aspirations, of choices             ment of the conditions of life-over quantitative
                             among alternative future possibilities. They are pro-          measures of growth. Severe economic problems not-
                             posed as guidelines for state policy makers, designed          withstanding, governors, legislatures, and citizen
                             to give some framework and coherent direction for              groups are urging that growth objectives be tempered
                             decisions that will affect the states' near and distant        by the imperative that development be consistent
                             future.                                                        with maintaining and enhancing the quality of the
                               The combination of the economic recession and                physical and social environment.
                             energy crisis in the mid-1970s has sharpened state
                             perceptions of the degree to which the states are              STATE OBJECTIVES
                             vulnerable to the economic consequences of Federal
                             government and private enterprise decisions. The               A composite picture of the states inevitably ag-
                             economy is national and international. The forecasts           gregates positive actions and illustrates noteworthy
                             of state analysts and ambitions of state political lead-       achievements. Examples are not made of failures
                             ers are easily shattered by forces set loose in Fed-           and laggards. Were they to be, the same states cited
                             eral conference rooms and corporate board rooms.               for accomplishment in some areas could be shown to
                               Although planning for growth has tended to con-              be delinquent in others. What the record shows in
                             centrate on the economic and environmental dimen-              initiative, innovation, and accomplishment is repre-
                             sions of public life, social concerns are understood           sentative in part of every state, but is not descriptive
                             to be integral components of a comprehensive growth            of any single state.
                             policy. States that have defined their goals have ad-
                             dressed health, education, housing, and social equity          The Substance and Process of Citizen Choices
                             as fundamental aspects of the quality of life they
                             aspire to create.                                              An estimated 65,000 people have participated in the
                               The social dimension has been brought sharply                Alternatives for Washington program through sur-
                             into focus in the mid-1970s as the impact of the               veys, media questionnaries, and conferences. The
                             economic slump has been felt in soaring crime rates,           first report of the project shows that the composite
                             overburdened welfare programs, and widespread                  picture of the Washington state its citizens want to
                             human deprivation aggravated by the inability of               see emerging over the next ten years is one of a state
                             many states to meet new demands or even maintain               growing moderately in population and economic op-
                             services to which they were already committed. The             portunity, dispersing and diversifying its employment
                             suddenly identified aim for national energy self-              base, conserving its resources, protecting its en-
                             suff iciency has brought its own set of social problems        vironment, and improving the performance of its gov-
                             to states where the rush to exploit energy resources           ernment. Population should increase at no greater
                             has created demands for immediate community de-                than the national rate. Family planning, education,
                             velopment and human services which existing com-               and services should be expanded. Future population
                             munities and states cannot provide.                            growth should be widely distributed over the State.

                                                                                        51

                          New job opportunities should be created In smaller               Resource development with protection of agricul-
                          communities. The State should control major utility            tural, timber, and mineral resource lands is a theme
                          and facility locations to promote dispersal.                   common to the growth policy statements of Hawaii,
                             Dispersal should be supported through ecnourag-             Colorado, Idaho, Oregon, and Vermont. These states
                          Ing industrial development suitable to less populated          and many others are emphatic in their determination
                          areas. This should be development that will use re-            to maintain and expand their agricultural production
                          sources available in these aras, such as energy                and to keep family farms in operation.
                          production, agriculture, timber processing, light
                          manufacturing, and communications activities. Inter-           Population Dispersal
                          city public transportation and rural roal networks             A companion goal to economic diversity is dispersal
                          should be improved. Selective use of tax incentives            of economic activity to support a dispersed pattern
                          could be used to guide private investment decisions            of settlement. Colorado seeks balanced population
                          to reinforce settlement dispersal.                             distribution with growth directed away from its con-
                             The problems of rural isolation could be overcome           gested Front Range and environmentally fragile
                          by innovative communications systems for com-                  mountain areas to the lightly populated High Plains
                          mercial, educational, and cultural use. State services         and South Central regions. Hawaii's growth plan sets
                          should be comparable for all areas, particularly in            target population increases at a lower level for Oahu
                          education, requiring a higher level of state funding           than for the other islands. A draft land use policies
                          and tax base sharing among communities.
                             .The citizens of Washington want economic growth            paper for the State of Idaho 5 says "Long range pol-
                          sufficient to meet the employment demands of the               icies should seek to distribute Idaho's population
                          State's workers, but not to provide opportunities that         growth to areas desiring and able to accommodate
                          will attract outsiders.                                        growth," and makes suggestions on ways to accom-
                             The resources of the State should be surveyed and           plish this objective by channeling industrial, resi-
                          the carrying capacity of land, water, and air de-              dential, and other development.
                          termined. Regulations should be adopted to require               Rhode Island has chosen a policy of centraliza-
                                                                                         tion to achieve service efficiencies and maintain its
                          that: renewable resources are used at no greater               open space and rural landscape. Its programs en-
                          than the replacement rate; the use of irreplaceable            courage compact development, infill and anti-sprawl.
                          resources is restricted, and; water quality, air quality,
                          and land resources are protected. Land use plan-               Guiding Development
                          ning as an intergovernmental activity with a high de-
                          gree of citizen participation is advocated.                    A Massachusetts statewide growth policy proposal 6,
                             Finally, Washington's citizens called for the re-           released in draft by the Office of State Planning in
                          form of government through the adoption of a new               October 1975, concludes that the State itself is a
                          state constitution that would consolidate powers and           major contributor to costly and inefficient develop-
                          clearly delineate executive and legislative functions          ment. The paper analyzes the impact of state invest-
                          and make possible the reorganization of local gov-             ment in such major facilities, as schools, housing,
                          ernments on the basis of geography and efficiency in           highways, and wastewater treatment plants. It finds
                          service delivery.'                                             that fringe rather than central development is en-
                                                                                         couraged, causing energy inefficiency, land waste,
                          Economic Diversity                                             and deterioration of established communities. Its
                                                                                         proposals would bring state investment policy in line
                          The desire of Washingtonians of a diversified econ-            with a growth policy strengthening existing population
                          omy is echoed in the Selected Growth Policies reso-            centers.
                          lution adopted by the 1975 Legislature in Hawai           1 2    Vermont's Capability and Development Plan                7,
                          and the State Comprehensive Development Plan                   adopted by the General Assembly In 1973, is explicit
                          adopted in 1975 by the South Dakota State Planning             in favoring a settlement pattern based on "cluster
                          Commission    .3 A Colorado Growth Policies draft, be-         planning and new community planning to economize
                          ing circulated among state agencies in the fall of             on the costs of roads, utilities and land usage." The
                          1975 by Governor Lamm, says that the state should              plan calls for allocation of growth according to the
                          "Encourage a diverse and stable economic base                  existing size of communities and the ability of com-
                          tailored to the State's needs by attracting and pro-           munities to provide services. It is being Implemented
                          viding incentives for a variety of industries that are         through the state's development permit system, its
                          environmentally desirable, relatively insensitive to the       ten-year transportation plan and state capital in-
                          national economy and other external influences, and            vestment planning.
                          with a sound future potential.    4                              Colorado's policy would limit urban sprawl and

                                                                                      52

                             encourage the creation of new satellite cities linked           The citizens of the State of Washington, through
                             by mass transit systems to existing metropolitan              the Alternatives program, expressed the desire not
                             centers. It would also seek the establishment of              for more government, but for better government. The
                             growth centers to revitalize declining rural areas.           Colorado growth policies draft calls for maximum
                             Oregon's 1974 legislation articulating goals to be in-        citizen in@olvement in governmental decision making
                             corporated in local plans requires the establishment          a decentralization of state government. The Florida
                             of Urban Growth Boundaries to discourage sprawl               Legislature proposed that its growth policy be im-
                             and the conversion of agricultural land.8                     plemented through modernizing and strengthening
                                                                                           local governments and through providing incentives
                             Conserving Energy                                             for growth management, technical assistance in sup-
                                                                                           port of growth management strategies, financial re-
                             The Florida Legislature's growth policy suggests that         sources, and policy guidance. If local governments
                             in that State the growth of energy consumption                fail to accomplish the Legislature's planning goals,
                             should be controlled by the long range availability Of        state government would have to carry out planning
                             energy. Colorado is willing to make its energy re-            programs for them. In Oregon, state goals have the
                             sources available to the Nation, but not at the cost Of       force of regulations to be carried out by local units of
                             degrading Colorado's environment or exhausting its            government.
                             water supplies. The energy conservation criteria of
                             the Vermont state plan are applied under the state's          State Government
                             development permit system.                                    This selection of growth policy illustrations is rep-
                               Although not a specific component of comprehen-             resentative of the themes and concepts that are
                             sive state growth policies for each of the states con-        common to most of the states' development policy
                             cerned, 10 western governors have issued a joint              positions as they have been adopted or are under
                             energy policy statement that declares: "Energy con-           current consideration. One third of the states have
                             servation must not be examined only as an alterna-            completed a development plan', comprehensive
                             tive in gaining energy self-sufficiency, but rather as        growth policy, or guidelines for growth management.
                             the cornerstone of each alternative examined."                An additional nineteen states have established com-
                                                                                           missions or processes for articulating state goals and
                             Environmental Impact                                          objectives.10
                                                                                             The translation from policy to legislation to pro-
                             The Vermont Capability and Development Plan calls             gram, and the carrying out of programs to achieve
                             for selective economic development based on "maxi-            the declared objectives, is the challenge that will
                             mum economic benefit with minimal environmental               test state management. While state attitudes and
                             impact." Protection of air and water quality is an ele-       strategies are diverse, there are denominators that
                             ment in virtually all state growth policy statements.         are increasingly common among them: the recogni-
                             Conservation of open space and protection of natural          tion of interdependency of state, local, and federal
                             and scenic resources is similarly a common com-               governments; the commitment to improving the
                             ponent of state policies. The Oregon Statewide Plan-          capability and effectiveness of state and local gov-
                             ning Goals and Guidelines requires that in local              ernments, and the obligation to act positively to
                             plans "programs shall be provided that will: (1) en-          anticipate and prepare for change. States are striv-
                             sure open space, (2) protect scenic and historic              ing to improve their capacity to operate rationally in
                             areas and natural resources for future generations,           the intricate intergovernmental web of jurisdictional
                             and (3) promote healthy and visually attractive en-           and fiscal relationships.
                             vironments in harmony with the natural landscape                Many of the aspirations expressed in growth pol-
                             character." The land use policies of Idaho and Ver-           icies are beyond the reach of state government which
                             mont include the protection of wildlife and wildlife          must function in an economic, social, and political
                             habitat.                                                      climate dominated by national institutions and forces.
                                                                                           The current economic situation and political climate
                             Strengthened Local Government                                 portend an era of imposed financial restraint that will
                                                                                           force states to be rigorous in program selection and
                             Local governments and regional councils of local              management. The need to set priorities will require
                             governments are regarded by most states as the first          a careful reconsideration of goals and purposes. To
                             line of growth policy implementation, with many               be efficient and effective, states will have to improve
                             states recognizing that their own state development           their planning and coordination processes. In par-
                             and capital investment policies have to reinforce, not        ticular, the ability to anticipate and prepare re-
                             undermine, local efforts to achieve state goals.              sponses to future possible events, and the ability to

                                                                                        53

                               evaluate future consequences of current events,                         4.  Colorado Growth Policies (Draft), July 1975.
                               programs, and policies, will have to be developed to a                  5.  Initial Land Use Policies for the State of Idaho (Preliminary
                                                                                                           Draft), Division of Budget, Policy Planning and Coordination,
                               much higher degree of sophistication than is now                            December 1974.
                               common to most states.                                                  6.  Land Use Reports, November 3, 1975, "Massachusetts Pro-
                                                                                                           poses Statewide Growth Policy."
                                                                                                       7.  Implementation Guidelines, Executive Order #2, State Plan-
                               Footnotes                                                                   ning Office, February 1975.
                                                                                                       8.  Statewide Planning Goals and Guidelines, Oregon Land Con-
                                                                                                           servation and Development Commission, December 1974.
                               1. Op. cit., "Washington Asks its Citizens."                            9.  Energy Development In the Rocky Mountain Region: Goals
                               2. State of Hawaii Selected Growth Policies Plan, March 1975.               and Concerns, Federation of Rocky Mountain States, Inc.,
                               3. State Comprehensive Development Plan, South Dakota State                 July 1975.
                                   Planning Comm! ssion.                                               10. Table X 11, page 45.

                                                                                                   54

                           V. Implications for State-                                      roads systems. A recent estimate warned that it
                                Federal Relations                                          would cost $12,400 per worker to provide merely
                                                                                           the necessary municipal services. I
                                                                                           The states seek to be considered and consulted
                           Interdependence                                              before decisions are taken that will have short term
                           Growth for growth's sake and bigness for the sake of         impact and long term consequences for them. They
                           bigness are discredited concepts. States seek plan-          want the diversity of the states to be taken into ac-
                           ned and controlled growth consistent with quality of         count in federal policy making. As expressed by the
                           life objectives. They recognize the interdependent           Nation's governors in their 1975 policy statement:
                           nature of the national governmental mosaic prob-                   The genius of our federal system is in the dy-
                           ably better than it is recognized either at the federal or      namic interplay it nurtures between the Federal
                           local levels. They seek a partnership of local, state,          government and the states. The creative function
                           and Federal government united by an overall na-                 of the states must not be stifled by preemptive
                           tional policy that will clarify responsibilities at each        federal legislation. Rigid uniformity denies innova-
                           level of government and assure that within each level           tion. The frontier areas of policy and program re-
                           there is an internal consistency of purpose and                 quire multiple approaches with careful evaluation
                           program.                                                        and the sharing of the results. States know their
                           . Through effective policy and planning coordina-               own traditions and the dynamics of their own
                           tion, states have the potential to significantly in-            societies and economies. Respect for diversity and
                           f luence the location and timing of growth, but they are        a willingness to compromise remain crucial in-
                           inhibited by the lack of coherent federal planning and          gredients of effective national policy and prograrn.2
                           program administration. Federal- state-local inter-
                           dependence not only needs to be recognized, but the          State Policy Positions
                           mechanisms of coordination need substantial im@              State governors speak collectively through the Na-
                           provement. Where states are the instrument for the           tional Governors' Conference and state legislators
                           achievement of national goals, they must be provided         through the National Conference of State Legisla-
                           the resources necessary to develop prerequisite plan-        tures. Both groups annually adopt policy positions,
                           ning and management ability.                                 the governors' tending to be broad in scope, al-
                           Federal Policy Impact                                        though accompanied by categorical proposals for
                                                                                        action, and the legislators more directly addressing
                           The energy crisis has brought into sharp focus the           specific issues. The 1975 statements for both groups
                           problems created for states when the Federal gov-            argue for a definition of national growth objectives.
                           ernment establishes emergency policies and pro-                 The National Conference of State Legislatures at
                           grams to deal with an issue of national scope, but           its October 1975 meeting adopted the following poli-
                           one that sharply affects the States. Governor Lamm           cies among many addressing aspects of national
                           of Colorado defines the problem for the Rocky Moun-          growth policy:
                           tain region:                                                       A national community growth policy should be
                               We are understandably worried about the de-                 developed by the appropriate public and private in-
                             cisions now being made in Washington with little              terest groups in concert with Federal, state and
                             or no consultation by the states involved.                    local governmental agencies.
                               For these decisions, new towns will spring up,                 Federal agencies currently empowered to un-
                             old towns will die, immense amounts         of our al-        dertake growth policy analyses should more ex-
                             ready limited water will be diverted        to energy;        tensively develop the mechanisms by which these
                             existing economies like agriculture will likely suf-          authorized functions are carried out.
                             fer grievous loss. Trout streams, long favorites of              The President should direct all appropriate Fed-
                             our citizens, will dry up and small rural counties            eral agencies to expand the national growth studies
                             will soon become large urbanized counties.                    and analyses which are so vital for future socio-
                               Immense new taxpayer improvements will be                   economic and political decisions.
                             required: new schools, new sewer systems, new                    The role of state legislatures should be recog-

                                                                                     55

                              nized in any federal growth policy planning proc-              consistent with multi-state arrangements which
                              ess.3                                                          may be established by states.
                              The Governors, in June 1975, adopted policy posi-
                           tions in the areas of the economy, transportation,             National Agricultural Development
                           energy, the environment, community development,                There should be a National Agricultural Develop-
                           and intergovernmental cooperation that, taken to-              ment Policy or a National Food Policy to assure the
                           gether, constitute a comprehensive statement of                nation it can feed itself and meet its responsibilities
                           their responses to dominant domestic issues and                to other people in the world. Such a policy should re-
                           their proposals for a national growth and develop-             flect the importance of and a system for the preserva-
                           ment policy.                                                   tion and maintenance of agricultural land for future
                              The following declarations are a greatly condensed          supplies and as a necessary habitat for wildlife, water
                           summary of the collective voice of the Nation's                resources and hunting and fishing, all of which are a
                           governors:                                                     necessary part of providing a quality environment in
                           National Economy                                               consonance with a population growth and distribu-
                                                                                          tion policy. Further, this policy should focus attention
                           The condition of the national economy has direct               on improving agricultural production capabilities,
                           and significant impact upon state governments and              transportation, foreign market development, process-
                           our citizens. The costs of state government opera-             ing agricultural products near the source of produc-
                           tions, effectiveness of ongoing programs and pres-             tion and efforts aimed at developing rural America.
                           sures for creation of new programs are directly linked
                           to economic decisions at the national level.                   Transportation Planning and Development
                              The National Governors' Conference further sup-             The Governors urge the Department of Transporta-
                           ports maintenance rather than reduction of federal             tion to develop and effectuate an integrated National
                           matching support for essential public programs in              Transportation Policy-through consultation with the
                           order to alleviate rather than increase the burden on          States-for the guidance of the States in the ac-
                           state and local government budget requirements.                complishment of national goals. Such a policy-
                           National Economic Development                                  based upon the data inputs contained in the National
                                                                                          Transportation Need Study, the National Transporta-
                           The nation's Governors believe ... that any national           tion Study, and subsequent national transportation
                           development legislation should provide for the follow-         studies by the Department of Transportation and the
                           ing elements:                                                  States-should be used for setting continuing priori-
                              A. Improved state and local program manage-                 ties in the National Transportation Policy.
                              ment capabilities and authorities, with appropriate
                              and significant involvement in the development of           National Population Growth and Distribution Policy
                              policy for and the administration of federal grants         There should be a National Population Growth and
                              and programs;                                               Distribution Policy, developed in concert with state
                              B. Continuation and strengthening of multi-state            and local planning policies, to lessen the congestion,
                              and sub-state cooperative arrangements, with ap-            and reduce pressure, on the already overburdened
                              propriate federal, state, and local participation and       resources of our cities, to offer opportunities for the
                              with adequate transition time to implement sub-             free movement of all our citizens to realize their
                              sequent legislative changes;                                maximum personal potential, to match manpower
                              C. Maximum flexibility in the planning and pro-             and job training programs with the needs for com-
                              gram activities of state, multi-state and sub-              munity development, and to lessen the problems of
                              state entities, including provisions for develop-
                              ment projects involving states not within the same          transportation, environmental decay and social serv-
                              multi-state entity;                                         ice delivery that are not being adequately dealt with
                                                                                          for today's population. Such a policy should be
                              D. Provisions for concentrating available re-
                                                                                          consonant with a rural-urban balance of needs and
                              sources on selected priority goals in each area to          regional potentials.
                              achieve balanced urban and rural development
                              and the revitalization of lagging areas;                    Natural Resources and Environmental Management
                              E. A. funding level for all multi-state   regions ade-
                              quate to provide a significant development impact;          The nation's Governors believe that national goals
                              and                                                         must be established for protection of the environ-
                              F. To the extent possible, federal regional ad-             ment and for energy availability. These must be joint
                              ministrative and program boundaries should be               goals because of inevitable trade-offs. The quest is

                                                                                        56

                            for a reasonable and responsible balance between               cern for the quality of life within the United States.
                            benefits and costs.                                            The most basic components for consideration In the
                               National energy policy, if It is to have the vitality       formulation of this policy are policies relating to
                            and acceptance critical to its success, must involve           population growth and distribution and to economic
                            more than the Federal government. Other levels of              development. Other components are policies relat-
                            government and private sector have an essential                ing to allocation of natural resources, agriculture,
                            responsibility in this quest.                                  transportation, housing, human resources develop-
                               While short-term action is needed, we must, more-           ment, financing and administration-all established
                            over, be guided by long-term planning and policies.            in a manner that will support policies concerning
                            Too often, short-term necessity lays the foundation            these two basic components.
                            of long-term policy. Planning for energy and environ-            A formulation and Implementation of such national
                            ment must be long range. We must think In terms of             community development policies in coordination and
                            decades, not seasons. In the quest for adequate                consonance with state development policies is es-
                            energy supplies, there must be proper recognition of           sential to achieve the objectives of balanced growth.
                            responsibilities to future generations to protect the
                            quality of the environment and to conserve our non-            New Communities Development
                            replaceable natural resources.
                                                                                           In light of the peculiar combination of circum-
                            Energy Production and Supply                                   stances which have adversely affected new com-
                                                                                           munity development in the past few years-the cur-
                            A long-range policy that encourages domestic self-             rent severe economic downturn which has had its
                            sufficiency in the production of energy should be              most acute effects on the land development and
                            adopted and underlie our foreign and economic                  housing industry generally, the failure to fund or im-
                            policy decisions as well as our basic research and             plement most of the statutory authorities in the Fed-
                            development efforts.                                           eral new communities legislation, the termination of
                                                                                           Federal housing and other community development
                            State Land Use Planning                                        grant programs at a critical point in the development
                            There is a need to face the issue of national and              Of many new communities, and the extremely limited
                            statewide land use planning and decision-making in             experience with the concept in the United States-it
                            this decade. The proliferating transportation systems,         would be short-sighted to abandon a program with
                            large-scale industrial and economic growth, conflicts          such potential long-term benefits because of past and
                            in emerging patterns of land use, the fragmentation            current difficulties.
                            of governmental entities exercising land use powers,
                            and the increased size, scale, and impact of private           National Housing Policy
                            actions have created a situation in which land use
                            management decisions of national, regional and                 There should be a national housing policy to co-
                            statewide concern are being made on the basis of               ordinate housing investment and construction pro-
                            expediency, tradition, short-term economic consid-             grams with a national community development policy
                            erations and other factors which are often unrelated           to car'ry out the social objectives of making a place
                            to the real concerns of a sound land use policy.               for all social and economic groups, to take advantage
                              There should be undertaken the development of a              of the environmental and efficiency advantages of'
                            national policy, to be known as the National Land Use          such a policy, to provide needed governmental aids
                            Policy, which shall incorporate environmental, eco-            for supporting housing construction and marketing,
                            nomic, social, and other appropriate factors. Such             with special support programs to assist those who
                            policy shall serve as a guide in making specific de-           cannot secure decent housing through normal chan-
                            cisions at the national level which affect the pattern         nels, to make maximum use of new technologies, and
                            of environmental and industrial growth and develop-            to stimulate additional investment by private industry
                            ment on the federal lands, and shall provide a frame-          and home property owners, thus adding to the over-
                            work for development of interstate, state and local            all housing supply, and to insure the availability of
                            land use policy.                                               sufficient long-term mortgage financing   .4
                                                                                            A theme that runs through the detail of the Gov-
                            Comprehensive National Community Development                   ernors! positions and proposals is the appeal to the,
                                                                                           Federal government to correct the confusing, con-
                            Congress and the Administration should develop a               tradictory, duplicative, and overlapping mass of re-
                            comprehensive National Community Development                   quirements and definitions in planning and program
                            Policy. A National Community Development Policy                guldelines.5 Although they applaud Federal efforts to
                            should embrace the major areas and Issues of con-              improve the management of intergovernmental pro-

                                                                                        57

                         grams, they complain that the commitment and                  9 Develop systematic methods for assessing im-
                         follow-through on implementation has been incon-                pacts of federal programs as they relate to inter-
                         sistent and, in many cases, non-existent.                       functional and i nter-govern mental location and
                           The other constantly reiterated demand of gov-                distribution, performance capability, resource
                         ernors is that they be acknowledged as the chief                conservation, and citizen expectations.
                         policy makers and planners in their states and that           9 Consider Federal policies dealing with responsi-
                         their responsibility for coordination of all statewide          bility transfer, resource transfer, taxation, and
                         and multi-jurisdictional substate planning be re-               spending in light of the effects they will have on
                         spected in intergovernmental program management.                state governments.
                         They understand and they ask that the Federal gov-            * Investigate specific strategies that may help
                         ernment recognize that the states are not "clients"             shape growth such as public investment plan-
                         or "customers" for national programs, but rather                ning, taxation of land, and water quality regula-
                         managers with delegated responsibility to carry out             tion as means of affecting private sector loca-
                         missions in pursuit of national purposes. The states            tional decisions.
                         seek partnership, and they seek a comprehensive               * Provide a variety of public forums for discussion
                         definition of national goals and objectives.                    and involvement in growth policy development.
                                                                                       * Consider local government activities as an in-
                         Harbingers of a National Growth Policy                          tegral part of state growth policies and responsi-
                         Both conceptual and institutional gaps remain in                bility.
                         achieving an informed and informing growth policy.            * Include states as an integral element in any
                         Local governments have experimented with new tech-              future national growth report as a partner in the
                         niques for guiding development and improving serv-              Federal system,
                         ices. States have demonstrated an increased willing-          9 As the governors have suggested, a national
                         ness and capacity to deal with the broad spectrum of            growth policy should include:
                         growth issues. A national consensus appears to have              1 ) Growth in employment opportunities
                         emerged on future directions in energy, the economy,             2)  Long-range energy policy
                         quality of life and responsive government.                       3)  National housing policy
                           The process for developing future national goals               4)  National community development policy
                         and growth policies must reflect this new body of ex-            5)  New communities policy
                         perience. While important beginnings have been                   6)  Population growth and distribution policy
                         made in the national growth reporting process, much              7)  Priority goals for balanced urban and rural
                         more needs to be done. An ongoing program of na-                     development
                                                                                          8)  Goals for protection of the environment
                         tional growth research should be initiated immedi-               9)  National land use policy
                         ately upon completion of the 1976 report. Such a                10)  Agricultural development and food policy
                         program of continuing research could provide a basis            11)  Integrated transportation policy
                         for a more informed national dialogue on critical is-
                         sues of local, state and national concern and the
                         ultimate development of a comprehensive growth             Footnotes
                         policy. The following elements should be included in       1 .Op. cit, "Energy Development and the Worried West."
                         that process:                                              2. Op. cit., Policy Positions 1975 - 76.
                              Establish an on-going information base and in-        3. Proposed Policy Positions, National Conference of State Leg-
                                                                                       islatures, September 1975 (adopted October 10, 1975).
                              dicators of growth and change to be used for          4. Op. cit., Policy Positions 1975 - 76.
                              both descriptive and analytic purposes.               5. Ibid.

                                                                                  58

                             V1. Case Studies                                              region's historically vital Industries migrated south-
                                                                                           Ward in search of cheap and unorganized labor...
                                                                                           [N]ew problems resulting from defense and NASA
                             A mong the materials developed for this state recon-          cut backs emerged in the late 1960s... [T] he eco-
                             naissance report were three case studies prepared             nomic outlook is far less encouraging now than it
                             by Leonard Wilson. The purpose of these studies is to         was two decades ago .... The spectacular re-
                             provide a description of how a few selected individual        covery in the late 1950s and 1960s-partially fi-
                             states and groups of states address problems of               nanced through government spending for defense
                             growth.                                                       and NASA, and strengthened by a vigorously grow-
                               The case studies clearly demonstrate the authority          ing private national economy-is not likely to be
                             and mechanisms now employed by specific states                repeated in the late 1970s and early 1980s. Fur-
                             to develop and implement'growth policy. They also             thermore, the momentum of national market forces
                             show the pivotal roles states can assume in the man-          is inducing rapid growth in other regions, espe-
                             agement of growth.                                            cially in the South, Southwest and West. 6
                                                                                           The Task Force followed its gloomy economic
                                                                                        prognosis with an optimistic declaration:
                             DEVELOPING REGIONAL ECONOMIC POLICY IN                        While most agree that New England's stake in fu-
                             NEW ENGLAND                                                   ture national growth is not as clear as it was two
                                                                                           decades ago, building an economically healthy and
                                                                                           environmentally acceptable region is not beyond
                                                                                           the reach of prudent economic poliCy.7
                             Economic Troubles                                             The report called on the region's elected officials
                             In November, 1975, unemployment among the New              to provide leadership in bringing government, labor,
                             England states average 11.7 percent. The national          business and finance together in a collaborative proc-
                             average was8.3 percent.' Since the 1970-71 reces-          ess "to convert the troublesome problems of our eco-
                             sion, regional unemployment has been 26 percent            nomic maturity into prosperity. . . . " 8  1In fact, that
                             higher than the national average.2                         collaborative process had been set in motion by the
                               In the year following the 1973 Arab oil embargo,         establishment of the Task Force, with membership
                             New England's energy bill rose      139 peTcent.3 Be-      from commerce and labor, by the Now England Re-
                             cause of the region's lack of indigenous energy re-        gional Commission (NERCOM). The study group's
                             sources, it is highly dependent on petroleum, most of      work was one aspect of the program of NERCOM
                             it imported. In 1974, 88 percent of New England's oil      whose objective is "to provide an effective, enduring
                             came from foreign sources while the country as a           response to the critical problems affecting the six-
                             whole was dependent on imports for 35 percent of its       state area in order to enhance New England's econ-
                             SUpply.4                                                   omy and make it competitive with other regions." 9
                               In addition to the nation's highest power costs, the
                             region's business must contend with higher than            Federal-State Partnership
                             average construction costs, land prices and taxes,         The New England Regional Commission was estab-
                             New England's rail transportation system Is in con-        lished in March, 1967, by the Secretary of Com-
                             stant financial and operational difficulty. The cost of    merce at the request of the New England Governors.
                             .living is higher than anywhere else in the United         The Public Works and Economic Development Act of
                             States except Hawaii and Alaska.5                          1965 had provided for the creation of regional de-
                               The Commission's Task Force on Capital and               velopment planning organizations in designated eco-
                             Labor Markets told the New England governors in            nomic development regions as a joint Federal-state
                             November, 1975:                                            enterprise. The commissions were to be made up of
                               New England's current economic problems date             the governors of the member states-one of which
                               back several decades. The national economy grew          would be elected state co-chairman-and a Federal
                               rapidly In the early 1950's, but New England             co-chairman to be appointed by the President.
                               slipped into the rut of economic maturity as the            The Commissions were to develop long-range eco-

                                                                                     59

                          nomic development plans and specific           action pro-     criteria had not been rigorously.applied in he past, the
                          grams to achieve their plans' objectives. Inherent in          Commissions' action signified the Governors' de-
                          the design of the program was the assumption of sub-           termination to respond, to charges in the press that
                          stantial Federal f unding- for pro  Jects. The Act estab.      the Commission was a "boondoggle" and to over-
                          lished as national policy "the purpose of achieving a          come efforis by the Federal administration to elimi-
                          closer inter-regional economic parity throughout the           nate all the regional commissions.
                          country." 10
                             For the first nine years of its existence,            the   The Energy Crisis
                          NE#COM annual prograrn budgets averaged'about
                                                                                         Shortly after-the new strategy was adopted, the Arab
                          $7 million, far short of the amount of investment        re-
                          quired to make any significant impact on the regional          Oil embargo changed the status of the regional
                          economy. No la     .rge-scale projects, such as the       re-  energy situation from a longer range problem to an
                          .    t
                          gio.hal highway network built by the heavily funded            immediate crisis condition. The Commission had al-
                                                                                         ready created the New England Energy Policy Staff,
                          Apoalacian Regional Commission, have been pos-
                          sib.le.,,                                                      which, since 1971, had been doing technical, eco-
                             The bu                                                      nomic and environmental studies. Under its Septem-
                                     lk of Corrimilssion funding has        been al-
                          located 6 research planning         Iand demonstration         ber 1973 reorganization, the Commission absorbed
                          pr6jects,,and to,manag'eiment grants to the states for         the study group into an expanded energy program.
                          executive off ice and                                          The long-term goal of the:prograrn was an assured
                               . .                  planning staff support. Over
                          the years, proj    Iects have been, for the most part,         and adequate supply of energy at costs that would
                          selected' throudh a negotiation process that has               sup@ort economic development sufficient to maintain
                                                                                         New England in a balanced economic position in rela-
                          tended tb emphasize      state ratheir'than regional.con-
                                                                                         tion to other regions of the country.
                          cerns and priorities.   On the other hand, the Comis-
                                                                                            In the short term, the six member states were
                          sion staff has had difficulty identifying projects of                                                              I .  I
                                                                                         faced with serious shortages, fluctuating supplies
                          truly economic significance to the region that could
                                                                                         and prices, and hastily developed Federal policies
                          be i6ndie"d "with the'limited resouice� available.
                                                                                         and programs. To help the states, the Commission
                                                                                         launched a variety of projects in response to the. im-
                          A Revised Strategy
                                                                                         mediate crisis. An energy conservation study pro-
                          ln'Seotember 1973, thi Commission decided            to re-    vided state governments with practical methods. of
                          organize its activitie s to concentrate on three      areas    achieving significant reductions in energy use.'Gas
                          believed to be of greatest importance to the region:           rationing strategies were evaluated. Emergency.pro-
                          business development,, energy, and transportation. A           cedures and contingency plans were developed to
                          resolution Was adopted that called for a work pro-             protect enprgy-dependent industries and prepare for
                          dram that represented a balance bqtween, projects              an. anticipated 30 percent shortage of fuel for elec-
                          dealing with immediate crisis conditions and projects          tricity generation. The economic and environmental
                          designed to fuhher diversifythe region's economic              impacts of oil-to-coal conversion for utilities were
                          base, expind employment ihd assist in supplying                analyzed,and a Federal-state task force on fuel con-
                          energy and transportation services requisite to eco@-          version and air quality created. The causes of rising
                          nomic development.                                             electricity rates Were studied and short and long term
                             The resolution also established criteria'by which           actions to mbderate,increases proposed.
                          project proposals were to be judged Which, in sum-                Fading the certainty of continuing major energy
                          mary, said, that before approving a propos@l the Corn-         problems, the Commission initiated two efforts ad-
                          mission should find that the project would meet the            0@essing long-range needs. In June, 1974, the New
                          following tests:                                               England governors met with the premiers of,Quebec
                             1. Have a definite regional dimension, that is, ap-         iaind the Maritime Provinces of Canada in s       -earch of
                                proach a multi-state problem;
                                                                                         areas of mutual interest and Opportunities for co-
                             2. Show strong prospects      to making a significant       operation in energy' production and technology teens-
                                                                                                                                          .9
                                contribution to the economic development of              fer. The resulting agreement committed the parties
                                the region;                                              to A continuing dialogue and reciprocal support. The
                             3. Respect the Commissiori;@ commitment to                  other long-range program area' focussed on policy
                                preserving     and     enhancing       environmental     issues bearing on regional energy supplies and costs.
                                quality;                                                 Studies were initiated to devel p, an understanding
                                                                                                                            P ,
                             4. Avoid duplication of efforts appropriate to other        and data base in the areas of demand, prices, supply,
                                agencies; promise benefits justifying costs, and         regional production potential, and legal and institu-
                                be responsibly managed.12                                tional. problems. With the objective of developing a
                             In addition to the implied admission that such              regional approach to development and siting of en-

                                                                                      60

                           ergy producing and distributing facilities, the Com-          ergy as a fundamental base of our society, be it
                           mission made an inventory and analysis of existing            the State, the Region, or the Nation, is inescap-
                           and potential oil refinery sites, deep water ports, and       able. The responsibilities which we hold separately
                           power plants, and studies of operating petroleum              as well as-collectively require action in concert as
                           product distribution systems.                                 as well as in variation within a central theme. To
                             To complement the regional effort, NERCOM al-               address the energy issue jointly, to act collectively
                           located funds to each member state to support en-             in the pursuit of its solution-this is the affirmation
                           ergy planning, policy development, and allocation             of the New England Region.    14
                           activities. Through funding of state energy offices,
                           and providing technical assistance to their staffs, the     The Transportation Program
                           Commission intended to develop competence within
                                                                                       As in the case of energy, crisis dictated the need for
                           state governments in managing energy resources,             priority NERCOM attention to New England transpor-
                           allocating scarce supplies, developing data and deal-       tation problems. The Boston and Maine Railroad had
                           ing with the private sector and the Federal govern-         gone bankrupt in 1971 and the region's entire rail
                           ment.                                                       system was steadily deteriorating, physically and fi-
                             Out of these intitial projects have evolved a series      nancially. With the passage of the Regional Rail
                           of increasingly sophisticated energy poll       icy and     Reorganization Act of 1973, the Congress had sig-
                           planning projects. In 1975, the New England Energy          nalled a predominant Federal role in the restructuring,
                           Management Information System (NEEMIS) was                  under public management, of the generally ailing
                           created to provide information, by state, on petro-         eastern railroads. In considering NERCOM program
                           leum supplies, storage capacity, and related mat-
                                                                                       reorganization in September, 1973, the New England
                           ters relevant to fuel allocation programs. A regional       governors recognized the urgent need for achieving
                           energy industry development project is concerned            a collective understanding and competence in rail
                           with the problems and opportunities related to outer        and related transportation matters to assure that
                           continental shelf exploitation, new refinery construc-      regional interests and concerns were considered in
                           tion, deep water port development, and other efforts
                           to increase indigenous energy production. Projects          Federal policy formation.
                           continue that provide the states and the region with          In developing a transportation program, the Com-
                           management and informatio      .n assistance and the        mission regarded transportation as an element in the
                                                                                       overall regional economic structure rather than as a
                           capacity to evaluate the implications of Federal
                           energy policies.                                            separate sector of the economy. The goal of the pro-
                             In November, 1975, the Commission adopted a               gram was to improve the'efficiency and reduce the
                           comprehensive energy policy statement covering,        in   cost of all forms of transportation as part of a com-
                                                                                       prehensive economic development strategy. A more
                           detail, conservation., nuclear power, outer continen-       balanced and integrated regional transportation net-
                           tal shelf devel,opm ent, coal conversion, indigenous        work was seen as necessary to support'bui-iness de-
                           resource development and research in new energy             vel6pment and energy conservation efforts. The pro-'.
                           sources such as solar and solid waste recovery. The         gram was charged with "promoting comprehensive
                           declaration appeals for Federal action to provide short     and balanced planning    for transportation within the
                           term relief from high energy prices to provide de-          region, and providing the states with the     necessary
                           velopment capital. While affirming "the imperative of       expertise for specific projects. .. .15
                           pursuing all possible sources of energy,"    13 the pol-      As a first step, the New England Rail Planning Of-
                           icy pledges continuing efforts in energy conservation       fice (NERPO)-an adjunct of the New England Gov-
                           and environmental protection. Interdependence is            ernors@ Conference operated on NERCOM funds@
                           the theme of the concluding section of the declara-         was abolished, and its staff was brought'into the
                           tion:
                                                                                       Commission. The group continued its concentration
                               The New England Region recognizes the regional          on the Boston and Maine Railroad failure, develop-
                             and national imperatives which address the issues         ing an economic model of the system and its relation-
                             of its economic viability and its land use patterns,      ship to the local economies in the communities it
                             as well as its quality of life. The Region further        served. Conclusions from this study formed the basis
                             recognizes that its declaration of principles can-        for recommendations on restructuring the system
                             not be achieved without the full cooperation of the       made before the U.S. District Court in March, 104.
                             national government. As individual states, as the         This experience encouraged the Commission to Un-
                             regional entity of New England, and as part of our        dertake the planning responsibilities and other ac-
                             nation's Federal system, we recognize the different       tivities required by the 1973 Regional Rail Reorgani-
                             .roles we must play and the different stewardships        zation Act.
                             we must discharge.... The commonality of en-                In addition to assuming leadership in developing

                                                                                    61

                         a regional policy position in rail system reorganiza-      grams designed within the confines of a $7.5 million
                         tion, the Commission provided grants to the member         budget can be expected to have an appreciable re-
                         states for the preparation of the detailed state rail      gional economic impact. In recognition of this reality,
                         plans which the 1973 Act required but for which it         the Commission adopted in 1974, and pursued
                         provided no funds. Special funding was given to Ver-       through 1975, a commercial and industrial develop-
                         mont io assist in the management of a railroad which       ment strategy "of regional scope" that consisted of
                         that state had acquired in 1973 to assure continued        an array of individual projects intended to be catalytic
                         service to an economically depressed area. Another         in the region's development."
                         project coordinated state planning for the Northeast          In search of new sources of capital investment,
                         Corridor High-Speed Rail Passenger System and pre-         and new markets for New England products, the Com-
                         pared a regional position on this proposed Wash-           mission established an office in the New York World
                         ington-to-Boston service.                                  Trade Center in 1974 and contemplated the opening
                            In 1975, an intermodal goods movement study was         of an overseas office in Brussels in early 1976. To
                         started@ its objective was to determine what im-           revive a traditional industry of continuing strong po-
                         provements in efficiency could be accomplished by          tential, a fisheries program was designed with ele-
                         state intervention in the form of facilitites construc-    ments directed to improving industry organization, to
                         tion or legislative revision. Demonstration projects       marketing underutilized species and to develop new
                         were undertaken in one state to design an inter-           fishing and processing opportunities and techniques.
                         modal passenger terminal and in another to test an         Another project initiated a manufactures' clearing-
                         air feeder service with bus connections. Both projects     house to identify and match, within the region, avail-
                         were described to stimulate the economies of areas         able production machine capacity with orders cur-
                         experiencing high unemployment rates. Support was          rently being filled by firms outside the region.
                         provided for a nonprofit organization to argue before         The largest single spending program in the 1975
                         the Interstate Commerce Commission the allegation          fiscal year was the division, among the six states, of
                         that rates on shipping food grains discriminated           $1.2 million which the Commission committed to ac-
                         against New England.                                       celerating the spending of Federal water pollution
                                                                                    funds released from impoundment in 1974. The
                         Commercial and Industrial Development                      NERCOM ' "leverage" funds were made available
                                                                                    for facilities planning and design, providing the re-
                         "Economic revitalization of New England is essential       quired local matching funds, and such other purposes
                         to mitigate the increasing trend toward severe re-         that would facilitate the start of construction and,
                         gional disparities," says the NERCOM Annual Re-            thus, the creation of employment in a $37 million re-
                         port for 1974.16 This theme underlies all Commission       gional Public Works Program.
                         thinking, reflecting regional concern with an eco-            A variety of projects were undertaken to assist in
                         nomic position that is declining in relation to other      meeting specific needs of individual states such as
                         national areas. The Report states:                         the abatement of whey pollution through the develop-
                            New England, once among the nation's most pros-         ment of a whey processing industry for Vermont; the
                            perous and productive regions, has witnessed in         modernization of the Port of Portland for Maine; ac-
                            the last half century the decline of its manufactur-    tion in response to emergency economic dislocation
                            ing, trade, transportation and agricultural base.       caused by military base closings in Rhode Island and
                            The causes are many, largely external, but the          Massachusetts. Maine, New Hampshire and Vermont
                            result has at times bordered on the critical:     em-   got special funds for tourism promotion. Connecticut
                            ployment, manufacturing output and an economy           developed a pilot program to improve centralized
                            chronically below the national average. The some-       statewide governmental telecommuni cations.
                            times negative economic. growth has served to              Several NERCOM programs provide direct as-
                            dissuade new industries from locating in the six        sistance to communities in the region to support eco-
                            states and to foreclose new markets for New Eng-        nomic development projects, Four experimental
                            land products.17                                        Community Development Corporations (CDC;s) have
                            The economic problems of the region have intensi-       been established to create economic self-help cap-
                         fied as the decade of the seventies has progressed.        ability for low-income groups. In a program that
                         The national economic slump of the mid-seventies           began in 1971, an urban area in each of the six states
                         has been, for many parts of New England, close to a        was selected for its potential as a "growth center,"
                         full scale depression. While the Governors and the         and provided funding for community and industrial
                         Commission staff have been able to devise policies         development activities. The program was being
                         and projects of regional significance in response to       phased out in the mid-seventies, apparently because
                         energy and transportation issues, the magnitude of         the results were not sufficiently dramatic to justify
                         the overall economic problem is such that no pro-          extended funding for a few selected communities.

                             Regional Planning                                             market problems. In an experiment without prece-
                                Under the Act establishing the Commission,                 dent, leaders from the commercial and labor sectors
                             NERCOM is obliged to prepare a comprehensive                  would cooperatively explore the relationship between
                             long range development plan. Such a plan was com-             unacceptable unemployment rates and capital limi-
                             pleted in October 1972. In anticipation of require-           tations to regional growth. Their report was presented
                             ments expected in a 1975 extension of the Act, and            to the Governors in November, 1975.
                             because of the changing economic climate and pro-                The group declared that, in the process of their de-
                             gram emphasis of the Commission, a revision of the            liberations, a philosophy had ev     lolved that united the
                             original plan was drafted in the fall of 1975.                key interest groups:
                               The 1972 plan document ran 650 pages plus sev-                 The Task Force strongly believes that these dif-
                             eral appendices. It contained an extensive economic              ferent interests have more in common than is
                             analysis of New England and set forth the Commis-                usually acknowledged; namely, that by failing to
                             sion's program in detail. Several years in prepara-              work  together to reach'common goals, all interests
                             tion, it was considered in many respects already out-            can lose together.
                             dated on publication. Unexpectedly high inflation and            As work proceeded, a distinct approach to these
                             unemployment rates made the Plan's projections ob-               two New England economic policy issues emerged
                             solete. Moreover, when the Governors reorganized                 from the Task Force process.... It can be best
                             the NERCOM program in 1973, they eliminated ac-                  described as a commitment to realism.. . [T] he
                             tivities in many areas addressed by the Plan while               new policy options to make labor and capital
                             adopting new priorities-particularly relating' to                markets functions more smoothly rest heavily
                             energy-to meet problems unforeseen by the Plan.                  upon minimizing existing frictions and obstacle          s
                               The Commission staff embarked on the Plan re-                  that prevent their orderly interaction with the other
                             vision determined not to repeat the mistakes made in             sectors of the New England and nationa            I bco-
                             the development of the original document. Instead of             nomies. This emphasis is important because it
                             the extensive use of consultants, the revision would             recognizes the imperative need to first clear away
                             be written by the staff and a committee of state re      .p-     these structural impediments before any more
                             resentatives. The document would be produced in                  sweeping policy options can be considered.19
                             six months or less. It would be brief enough to invite           The report made twelve specific recommendations.
                             readership. Its horizon would be relatively short term.       In relation to capital markets, the most significant in-
                             In recognition that by far the greatest amount of eco-        novation was the proposed creation o         f a privately
                             nomic program activity would be carried out by the            financed regional fund-the New England *Capital
                             separate states, it would have state chapters in both         Corporation-to supply ten to twenty year debt capi-
                             the analysis and program sections. The process, in            tal to established and growing companies. A regional
                             fact, invited each of the member states to set forth          municipal bond bank and a new product develop-
                             state problems, prospects and proposals, and then             ment corporation were other suggestions. The report
                             to find roles for the Commission that complemented            urged a public information program to develop more
                             state development objectives and activities.                  positive attitudes toward economic growth.
                               Work on the plan revision was initiated in Septem-             To make labor markets function better, the report
                             ber, 1975. A first draft was circulated to the com-           proposed a series of steps to identify and 'predict
                             mittee of state representatives in December. A sub-           needs, and to recruit a    nd train workers to fill these
                             stantial condensation and revision was started as the         need& Included was a loan program to attract work-
                             new year began. The document that would emerge                ers into critically short occupations, greater coordi-
                             would analyze the regional and state economies, dis-          rration of the employment. security agencies of the
                             cuss the NERCOM program to stimulate economic                 six states, and systematic advice to the region's vo-
                             recovery and growth, and identify programs and proj-          cational and technical schools on emiwging occupa-
                             ects of the six states for which funding by the Com-          tional opportunities.
                             m I ssion wa s propo sed.                                        In its concluding remarks, the Task Force called
                               While the plan revision was being done, the Task            for greater harmonization of economic policies
                             Force on Capital and Labor Markets completed its              among the six states, commenting:
                             work and issued its report. The committee had been               One of the most surprising outcomes of the Task
                             established by the Commission in April 1975 in re-               Force process was the realization of how little is
                             sponse to an offer of cooperation from the private               known about the common governmental, business
                             sector. Each of the member state governors ap-                   and labor practices among the New England
                             pointed three members representing business, bank-               states. Specifically, there seemed to be an alarm-
                             Ing and organized labor. Their charge was to recom-              ing level of noricommunication among key public
                             mend policies to attack the regions' capital and labor           sector officials who are mandated to implement

                                                                                        63

                            highly complementary policies that spill over into           A response received by Governor Dukakis Il-
                            their neighboring states.. . [P]rudent and efficient        lustrates another serious problem of the Commission:
                            ,economic policy rests heavily on the establishment         not all Its members are in agreement on expanding Its
                            of an effective interstate dialogue among public            activity. Governor Meldrin Thompson of New Hamp-
                            officials as well as between the public and private         shire answered: 1, for one, am opposed to any addi-
                            sectorS.20                                                  tional money for the New England Regional Commis-
                                                                                        sion.. . . I just think it is very unfortunate in these
                         Problems and Prospects                                         times for us to be thinking that this money Is coming
                         The appeal of the Task      Force for better interstate        off of some Christmas tree in Washington, when in
                         communication and coordination in matters of eco-              fact it is coming out of our taxpayers' pocketbook." 22
                         nomic policy both emphasizes the need for a regional           The New Hampshire governor has often been joined
                         intergovernmental economic organization, and the               by Governor James Longley of Maine in questioning
                         limited success, in this role, of the New England              t.he structure, function and politics of theCommission.
                         Regional Commission. As the Commission digested                Division among the governors over the role and
                         the recommendations of the study group, It remained            organization of the Commission, it's constantly un-
                         to be seen how the current and prospective budgets             certain life expectancy and consequent short run
                         might be reshaped to recognize new objectives and              planning perspective, and the disparity between its
                         start new programs consistent with the advisors'               mission and its resources, limits the extent of ac-
                         vision of the road to harmonization and revitaliza-            complishment that can be expected from NERCOM.
                         tion of the regional economy.                                  Nevertheless, the organization can point to signif-
                            The Commission faced very real difficulties in              icant achievements. The six governors meet reg-
                         contemplating new roles and responsibilities. With             ularly-If occasionally acrimoniously-to consider
                         the fiscal year half over, the level of funding was still      regional problems. They have spoken in a reasonably
                         uncertain. The program for FY 1976 had been based              unified voice on national energy and transportation
                         on an anticipated $5.9 million Federal appropriation.          issues. They have initiated interregional cooperation
                                                                                        with Eastern Canada in both areas. Strong institutional
                         A funding level that would mean an additional $1.8                               i
                         million was approved by the Congress and the Presi-            support from the NERCOM staff has provided the
                         dent in December.                                              Commission with a sound technical basis for policies
                            For six states whose combined FY 1974 expendi-              in these areas.
                         tures totalled $8.3 billion, even the larger sum could         Communities throughout the region have benefite@
                         not be regarded as a significant contribution to at-           from development projects. Programs have focused
                         tacking the basic economic problems of the region         *    on specific problems of the separate states with
                         The Governors and the Commission staff could not               fruitful results. The state management grants and
                         consider this range of funding to be an incentive for          energy office support have provided governors with
                         serious planning for the kind of massive public works          needed additional executive capacity. Staff research
                         investments that might cause the structural changes            has added substantially to the recognition of regional
                         needed to restore the region'.s competitive edge in            needs and opportunities. Real, if modest, achieve-
                         manufacturing.                                                 ments have been made in job creation: the staff
                            The Governors have recognized the need for such             identifies 904 jobs directly generated by NERCOM
                         planning, even within the framework of currently               programs from 1972 through 1974 and estimates an
                         anticipated appropriations. Governor Michael Duka-             additional 1,225 jobs generated in 1974.23
                         kis of Massachusetts, who became state co-chairman             As 1975 state co-chairman Governor Thomas Sal-
                         In December, 1975, had declared at a Commission                mon of Vermont passed the gavel to his successor,
                         meeting the previousJuly:                                      he spoke in recognition of both the strengths and
                            Now I don't know what the nature of such regional           weaknesses of the Commission. After summarizing
                            public works ought to be, but I personally am not           the year's accomplishments, the Governor said:
                            very happy with the idea that we simply take a big          These projects demonstrate more than any words
                            piece of pork and divide it up six ways.. . - [11f          of mine that regionalism is alive and well in New Eng-
                            we are now looking down the road to something               land. With your continued commitment our region
                            more expansive, I would hope, Mr. Chairman, the             can become a stronger voice in the national decision-
                            staff will begin to look at the public works side of        making process and each of our states can reap the
                            our activity in a truly regional sense with special         benefit of a coordinated approach to interstate prob-
                            emphasis on energy, on transportation, and on               lems....
                            economic development, and not look on that part             The Federal-state partnership contemplated by the
                            as being something to be divided six ways, for              regional commission mechanism presents unique
                            whatever purpose we'd like to use It for.21                 operations and management problems. To date, the

                                                                                   64

                                    state members have failed to give these problems the                                    Footnotes
                                    attention they deserve. Our primary focus during the                                    1.  New England Economic Indicators, Federal Reserve Bank of
                                    last eight years has been on the development of a                                           Boston, January, 1976.
                                    true commitment to regionalism. We have empha-                                          2.  "Prospect for New England," report on a conference at the
                                                                                                                                Woodrow Wilson International Center forScholars, October 7,
                                    sized the creation of a cooperative working relation-                                       1974 (Overview paper by Neal R. Pierce).
                                    ship, the identification of priority areas for regional                                 3.  Ibid.
                                                                                                                            4.  Annual Report, Fiscal Year 1974, New England Regional
                                    decision making, the implementation of articulated                                          Commission.
                                    regional policy. the Federal and State Co-chairman                                      5.  Op. Cit., "Prospects"
                                    were left to cope with the day to day management                                        6.  Report of the New England Regional Commission Task Force
                                    and operation of the-Commission.                                                            on Capital and Labor Markets, November 12,1975.
                                                                                                                            7.  Ibid.
                                       If NERCOM is to continue to grow and improve as                                      8.  Ibid.
                                                                                                                            9.  Opt. Cit., Annual Report.
                                    a regional tool, all Commission members must be                                         10. Multistate Regionalism, Advisory Commission on Intergovern-
                                    aware of and responsive to the need for an estab-                                           mental Relations, April 1972,
                                                                                                                            11. Resolution 72, New Engiand Regional Commission, Septem-
                                    lished operational and administrative procedure. That                                       ber26,1973.
                                    procedure should be designed to foster a regional ap-                                   12. Ibid.
                                    proach in the area of program implementation that is                                    13. "A New England Energy Policy," New England Regional
                                                                                                                                Commission, November, 1975.
                                    more responsive to articulated regional policy de-                                      14. Ibid.
                                    cisions. Primary emphasis should be placed on the                                       15. Op. Cit., Annual Report.
                                    generation and funding of programs and demonstra-                                       16. Ibid.
                                                                                                                            17. Ibid.
                                    tion projects which are capable of direct regional im-                                  18. Ibid.
                                    pact. Individual state programs should be de-empha-                                     19. Op. Cit., Report of the New England Regional Commission
                                                                                                                                Task Force.
                                    sized. Only by taking this next step in NERCOM's                                        20. Ibid.
                                    maturation process can we expand its role in New                                        21. Ibid.
                                    England and its funding level.                                                          22. Ibid.
                                                                                                                            23. Letter of May 2, 1975 from Linda Frankel, Director of Eco-
                                       It is my recommendation                   that this goal be given                        nornic Development, NERCOM, to Sam Vitale, Office of the
                                    priority by the Governors and the Federal Co-chair-                                         Lieutenant Governor, State of Massachusetts.
                                    man during the next year              .24                                               24. Remarks of Governor Thomas P. Salmon to the New England
                                                                                                                                Regional Commission, Stowe, Vermont, December 19,1975.

                                                                                                                     65

                            UTAH: MANAGING A GROWTH EXPLOSION                               whole, while gaining population in the decade, had a
                                                                                            net migration of 19 percent.6
                            Utah's Energy Boom                                                Coal development alone has an estimated potential
                            Utah's official state   motto is "industry." The state          to create over 8,000 jobs by 1980, 12,000 by 1985,
                            symbol is a bee hive. Seventy percent of Utah's                 not including secondary and service jobs.' In the
                            population is Mormon, members of the missionary                 eight or nine counties where energy resources are
                            religion of the pioneer founders of what became the             most plentiful, population is sparse, unemployment is
                            Nation's 45th State. They are committed to the prot-            high and per capita income is low. For the people of
                            estant principle of creating the Kingdom of God on              Utah the equation is clear: the nation needs new
                            earth. This outlook is communitarian and optimistic.            sources of energy; Utah has the energy reserves;
                            In the words of Dean Sterling McMurron of the Uni-              rural areas of the state need economic development.
                            versity of Utah, "the will of the Church is to create             Utah's leaders are aware of the potential adverse
                            the good community." I                                          impacts of energy exploitation on communities and
                               Utah has immense and largely undeveloped energy              the physical environment. Governor Rampton warns
                            resources. Because the availability of domestically             that because the coal and oil deposits are, for the
                            produced energy is the paramount growth issue in                most part, remote from existing metropolitan areas,
                            America today, Utah, along with the other Rocky                 existing small towns are in danger of being overrun
                            Mountain States, is being called upon to greatly ac-            by rapid expansion; in many areas, whole new com-
                            celerate its fossil fuel exploitation. Says Governor            munities will have to be planned and built.8 A current
                            Calvin Rampton, "it is apparent to me that Utah's               state energy policy report says: "Roosevelt, located in
                            immediate future is largely going to be tied to the             the center of the oil rich Uintah Basin, is one example
                            development of its energy resources. In the past, the           of a town that has already boomed as a result of oil
                            United States has not urgently needed our coal, oil             development. The increased population led to in-
                            shale or tar sands. Instead, the country relied on its          creased demands for facilities and services out-
                            abundant and easily accessible supplies of domestic             stripping funds and resources of the city to provide
                            oil and gas, Eastern coal and, in recent years, im-             them." 9 The community grew from 2,000 to over
                            ported oil. But recent events have made clear to all            .5,000 population in less than three years.
                            of us the problems inherent in excessive reliance on              In his 1975 State of the State message, Governor
                            foreign energy, and have underscored the desirability           Rampton appealed for careful planning: "Without
                            of developing the United States' ample domestic                 proper planning, economic development can despoil
                            resource base-thus the creation of a national strat-            our land.. . Also, our planning must recognize that
                            egy we now know as Project Independence." 2                     our expected economic development will result in
                               According to Governor Rampton, Utah has enough               population shifts, with the effect that totally rural
                            coal to satisfy the nation's needs for 150 years at             areas will suddenly become populous, presenting a
                            present rates of consumption and, while it is deep              demand for new roads and streets, adequate water
                            coal costly to recover, it is of very high quality and          and sewage systems, new schools and community
                            averages only 0.5 percent sulphur content.3 Reserves            services- With sufficient lead time and adequate
                            are estimated at 24 billion tons of which 15 billion are        preparation, we can meet these challenges. But, if
                            considered easily recoverable. In addition, Utah has            they descend on us suddenly, they could be over-
                            200-300 million barrels of oil and natural gas liquids,         whelming." 10
                            250 to 400 billion cubic feet of natural gas, 26 billion          The Governor's concern with the despoiling of the
                            barrels of oil in impregnated sandstone, 90-115                 land is a repeated theme. He told a state economic
                            billion barrels of oil in oil shale and 18 million tons of      development conference: "This effort to be energy
                            uranium.4                                                       independent must be coupled with the growing real-
                               In at least one of the four years between 1971 and           ization that our environment is already damaged and
                            1974, 11 of Utah's 29 counties experienced unem-                that we are on our way to ecological disaster if we
                            ployme  nt rates above 10 percent. Seventy-two per-             continue to exploit our resources in an unplanned
                            cent of the state's counties quality for Federal desig-         manner." 11 Utah's U.S. Senator Frank E. Moss, in a
                            nation as areas in economic distress. These are                 national television interview, urged his constituents
                            rural counties; the urban areas are relatively pros-            to employ land use planning to prevent strip develop-
                            perous, experiencing growth and industrial expan-               ment and shanty towns. "We are very jealous of
                            sion.5                                                          keeping our scenery, our air and our water pure," he
                               The 1971 per capita income for urban Salt Lake               said.12
                            County was $4,020. For twelve rural counties it was               Utah's scenery is dramatic, from the 13,000 foot
                            less than $2,500. Between 1460 and 1970, 113 rural              peaks of the Uintas in the northeast to the eerie pink
                            counties declined in actual population. The state as a          spires of Bryce Canyon and the monumental walls of

                                                                                         66

                           Zion Canyon in the southwest; from Great Salt Lake         set of policy decisions has ever confronted Utah gov-
                           in the northwest to Lake Powell and Glen Canyon            ernment officials," says Governor Rampton. "Pro-
                           in the southeast. There are five national parks, five      tection of the environment, the location and. building
                           national monuments and two national recreation             of new towns and the booming growth of existing
                           areas in the State. Vast areas of the state are wilder-    communities all confront our state and its subdivi-
                           ness or semi-wilderness. While the population              sions with problems that have not been previously
                           density of Salt Lake County is 600 people per square       experienced." 18 The Governor is frank: "So what do
                           mile, more than half the counties of the State have        we do now? Common sense tells us we can't just
                           less than,three people per square mile.13                  call a halt to everything we are doing, as some mili-
                             A state land use planning statute was passed by          tant groups would like us to. But cutting down on
                           the Legislature in 1974 with strong support from the       the use of energy... is absolutely imperative.. . . Un-
                           Rampton Administration and local officials, but it was     fortunately, what we know and what we do aren't
                           later soundly defeated in a public referendum. State       necessarily the same thing.. . . It simply takes time to
                           Senator Carl Snow says its supporters were "over-          slow down the momentum of greater. and greater
                           come by issue distortion" in the public debate. He         energy use which has been building for the past 50
                           thinks that the Legislature is now "gun-shy" on the        years.. . . So obviously, conservation cannot be the
                           land use issue and the planning initiative rests with      only answer. Another and necessary route open to
                           the executive and the substate planning districts.14       us is developing new technologies to improve the
                             Water is the most critical environmental issue for       usefulness and efficiency of the fuels we now
                           Utah. The state probably does not have enough water        have." 19
                           to support all of its potential energy-related develop-    Kalparo .wits:ICoal and Power
                           ment. The demand for water for oil shale extraction,
                           coal conversion and coal-fired electric generating         In the summer of 1975, the New York Times syndi-
                           facilities in the Colorado River Basin area is expected    cated a feature article on the 3,000 megawatt, coal-
                           to reach 243,450 acre-feet per year in the near            fired electric plant and its supporting coal mining
                           future. Utah has only 300,000 acre-feet of unused          operations planned for the Kaiparowits Plateau in
                           water allocation under the Colorado River Compact.         southwestern Utah. The article called the project the
                           The state engineer..is currently reviewing applica-        keystone of energy development for the Southwest,
                           tions for all purposes totaling more than 1,200,000        the first of five new power plants proposed for the
                           acre-feet of this water. In some counties, farms           lower half of Utah which would eventually produce
                           are being purchased to gain water rights for use           9,000 megawatts of electricity, seven times as much
                           in power generation.15 Governor Rampton warns,             as now produced in all Utah. The Kalparowits situa-
                           "Our states (the Rocky Mountain States) do not             tion was characterized by the article as unique both
                           have enough water to support all the energy related        because of the potential environmental impact and
                           developments which our resources could attract.. -         because of Utah's attitude toward it. "Utah appears
                           We must preserve our limited water resources for           to be welcoming Kaiparowits with open arms." 20
                           the culinary, agricultural and recreational use of the      Governor Rampton and his aides bristle when the
                           people in the towns and cities that will be experienc-     article is mentioned, particularly for what they see as
                           ing tremendous growing pains as a result of the de-        unfounded inferences to smog-obscured horizons,
                           velopment and recovery of our energy resources. I          raped land and trailer camp boom towns, and of gov-
                           do not want to see our rivers and creeks dry up from       ernment indifference and inaction in the situation.
                           abuse and overuse." 16                                     The plant and mine operations will meet air quality
                            The State's effort to plan for energy development         standards, the Governor say�. The new community
                           and resource conservation is complicated by the fact       related to the project will be carefully planned and
                           that the Federal government owns two-thirds of             located, both in relation to physical considerations
                           Utah's land, with federal land management princi-          and with concern for social and economic factors.
                           pally divided among the Department of Interior's           The state and the region have a highly developed
                           National Park Service and Bureau of Land Manage-           planning process bringing together the technical re-
                           ment and the Department of Agriculture's U.S. Forest       sources of the state and the human resources of the
                           Service. Each of these bureaucracies has its own           local governments and communities of the region.21
                           guidelines for development and conservation. Their          A four-company consortium plans to undertake
                           current land management plans have upset the legis-        the Kaiparowits project. Participants are Southern
                           lature which feels that the federal agencies are trying    California Edison Co., San, Diego Gas and Electric
                           to lock out activity that is vital to Utah'seconomy and    Co., Arizona Public Service Co. and Salt River Proj-
                           the well-being of its citizens. 17                         ect. Twelve million tons of coal will be taken annually
                            "One wonders if a more demanding and serious              from four mines. A 1,460 mile 500 KV transmission

                                                                                   67

                          system will deliver power to Arizona and Southern          serious possibility. Over the period, the companies
                          California. Limestone, needed in coal processing,          moved ahead with their planning, dealing with the
                          will be mined in Garfield County northwest of the          Kane County Commissioners, the Governor's office
                          plant and brought in by truck over a new 67-mile           and various federal offices. It was not until mid-1974
                          highway. A new town will be built to house up to           that a body was created to "guide and coordinate
                          15,000 workers and their familieS.22                       activities related to energy development in Kane and
                            The generating station will consist of four 750          Garfield Counties" in the words of Governor Ramp-
                          megawatt steam turbine units. The operation will           ton's Executive Order of August, 1974 creating the
                          consume 41,400 square feet of Utah's allocation of         Kalparowits Planning and Development Advisory
                          Colorado River water supplied by a pump station on         Council (KPDC). The Kane County Commission had
                          Lake Powell. Each generating unit will have a con-         formally recommended the establishment of a co-
                          crete stack 600 feet high. Electrostatic precipitators     ordinating body to the Governor. The concept grew
                          will remove particulate matter and scrubbers will re-      out of discussions within the Five County Association
                          move sulfur dioxide. Ash and scrubber sludge will          of Governments to which both Kane and Garfield
                          be dumped in a land fill. Waste heat will be disposed      County Commissions belonged     .27
                          of by wet process cooling towerS.23                          The KPDC: has a voting executive committee
                            The Kaiparowits Plateau is an area of roughly 40         chaired by the Kane County Commission chairman
                          square miles ranging from 5,000 to 6,000 feet in alti-     and including a state senator and a member of the
                          tude. It is characterized by canyons and "benches"         House of Representatives, both from the region, a
                          or small plateaus. The proposed plant site is about        Garfield County commissioner and a county commis-
                          five miles northwest of the closest point of the border    sioner from a neighboring county who represents the
                          of the Glen Canyon National Recreation Area and ten        Five County Association of Governments. Non-voting
                          from the nearest shore of Lake Powell. It is about 43      members include local town and school officials of
                          miles, as the crow flies, southeast of the canyon rim      the two counties; state officials, including the State
                          of Bryce National Park.                                    Planning Coordinator, Executive Director of the De-
                            Most of the land is federally owned and under the        partment of Community Affairs and executives of the
                          jurisdiction of the Bureau of Land Management.             Departments of Highways, Natural Resources, Em-
                          Acquisition of parcels of this land by the companies       ployment Security, Development Services and Social
                          through the state is proposed, and believed possible,      Services; representatives of Federal agencies includ-,
                          but the process is complex.                                Ing the,Forest Service, National Park Service and
                            The area of development lies mainly in Kane              Bureau of Land Management; and representatives of
                          County, but the new highway will run north into Gar-       the consortium companies. Staff support for KPDC is
                          field County, bringing Bryce Valley communities into       provided by the Five County Association and state
                          proximity of the operations. The combined popula-          agencies.
                          tion of the two counties was 5,578 in 1970. Their peak       To facilitate its work, the Council created four
                          population was in 1940, when 7,814 residents were          working groups to concentrate on highway access
                          counted. Between 1950 and 1970, 3,062 people               planning, manpower needs and training, environ-
                          migrated out of the counties, 25 percent of the pop-       mental impact statement assistance and review and
                          ulation. In 1971 the per capita income in Garfield was     new community development. The highway task
                          $2,700 and Kane $2,380 as compared to Salt Lake            force, with considerable assistance from the State
                          County's $4,020. 24                                        Department of Highways, studied possible alternative
                            The high estimate of the. population impact of the       routes and selected a 67-mile alignment that con-
                          Kalparowits project on the two counties shows an           nects Cannonville on the north end with Glen Canyon
                          increase of 13,500 by 1980 and 15,500 by 1990 re-          City on the south. The selection was made in time
                          sulting from 5,198 new jobs by 1980 and 6,716 jobs         for State Senator Dixie Leavitt, chairman of the work-
                          by 1990. This is only the Kaiparowits related increase.    ing group, to carry the proposal to the 1975 session
                          When the impact of all the projects that are proposed      of the legislature and to secure a commitment of
                          for the region is calculated, the 1990 combined pop-       funding for the road. The task force had to overcome
                          ulation of the counties is projected at close to 60,000,   resistance from Kane county to a through route from
                          a 12-fold increase in 15 year    S.25 A more cautious      the north which will provide a short cut for north-
                          state estimate puts the 1990 population at 42,000,         south auto travel that will by-pass most of Kane
                          more than an eight-fold increase  .26                      County's existing population centers.30
                            The magnitude of the project and its potential             The manpower working group was instructed to
                          economic, social and environmental impact on the           identify the kinds of people needed to work in the
                          region has caused Federal, state and local concern         construction and operation phases of the plant and
                          for the decade since the proposal first surfaced as a      mine and to consider how they could be trained on a

                                                                                  68

                          schedule to fit the project schedule. The Five County     whose impoverished Bryce Valley communities lie at
                          Association, through its manpower planning program,       the northern terminus of the new road, strongly fa-
                          had already done a great deal of the basic informa-       vored the Four Mile site. Kane County has strongly
                          tion gathering. By June 1975, the task force could        favored the East Clark site.
                          report that an initial statement of needs had been           While reiterating that the choice would be made
                          forwarded to the State Manpower Council and the           locally, Governor Rampton made it clear that he pre-
                          State Board of Education. A special statewide man-        ferred the Four Mile Bench site. In the state energy
                          power training group has been established with the        policy report that was published, belatedly, the day
                          Five County Association representing the state's          before the site decision was to be made, the Four
                          seven Associations of Governments.31                      Mile site was praised and the East Clark location
                            Lead agency responsibility for preparation of the       criticized. "The East Clark Bench site is the least
                          Draft Environmental Impact Statement (EIS) for the        desirable for several reasons: (1) it is the most
                          Kalparowits project was assigned to the Bureau of         desolate of the three sites with frequent winds; (2)
                          Land Management in accordance with the dictates           it lacks natural esthetic surroundings for landscaping;
                          of the National Environmental Policy Act of 1969.         (3) of the three sites it requires the greatest travel
                          The Council work group's role was to monitor the          time for workers commuting to and from work; and
                          process and review the product.,In fact, the Bureau       (4) it has the hottest surnmers and the coldest
                          depended largely on the Council and the consortium        winters." The proximity of East Clark to Page, Arizona
                          to provide the basic EIS Information. The companies       with the threat of residents going across the border
                          had previously provided Kane County the necessary         to shop was also cited  .3.4
                          funding to employ a consulting firm and they had             The companies apparently tried to maintain neu-
                          themselves retained Kaiser Industries as their plan-      trality, but as their studies showed considerable cost
                          ning and engineering consultant. In addition, the         differentials between the two sites, they began to
                          companies commissioned several environmental              exhibit a strong preference for East Clark Bench. At
                          studies by Brigham Young University. The Council          the September 25 meeting, they introduced a lengthy
                          had no resources of Its own to conduct independent        letter summarizing their consultant's conclusions that
                          research. Its members could only rely on their own        the topography of the Four Mile location would result
                          knowledge of the area as the basis of judgment for        in extensive and expensive site preparation and more
                          the validity of the information provided and the          costly sewer and water system installation. The esti-
                          reasonableness of the Bureau's interpretations and        mate, which added $3,000 to $6,000 per unit housing
                          concluslonS.32                                            cost, was seen as placing the town at a competitive
                            State and local officials are. determined that the      disadvantage with scattered housing at other loca-
                          new community that will be built in conjunction with      tions. The letter also regarded the Four Mile site as
                          the Kaiparowits project will not be a typically tacky     remote and inaccessible making it undesirable for
                          boom-town mobile home park. It is intended to be          commercial, light industrial and tourist development.
                          more than a "company town" although it has been           The East Clark site, on the other hand, could be
                          agreed that it will be designed, financed and built by    expected to capitalize on its proximity to Lake Powell
                          the project consortium. The Council task force has        in developing a tourist and retirement base. The
                          been working with the Company and Kane County             closeness to Lake Powell was also cited as making
                          consultants on planning and design of a community         it more desirable for Kaiparowits workers. Finally,
                          that will occupy some 2,000 acres with about half         the consultants suggested that an East Clark town
                          developed for public and recreational uses including      would, because it would attract greater concen-
                          swimming, golfing, playgrounds and playing fields. A      tration of activity, actually prove more commer-
                          mix of housing types is proposed with about 3,200         cially competitive to neighboring Page, Arizona than
                          units of multi-family and single-family permanent         a Four Mile Bench community. The consultants also
                          homes and 1,375 units of mobile homes In place by         pointed out that the draft EIS favored East Clark .35
                          1986.33                                                      In preparation for the September 25 meeting of the
                            The most controversial issue     facing the Council     Council, Neal Christensen who, as Executive Direc-
                          has been the siting of the new town. When it met on       tor of the Five County Association of Governments,
                          September 25, 1975, potential locations had been          served as the Council's staff director, made a detailed
                          narrowed to two-Four Mile Bench and East Clark            comparison of the two sites using all the information
                          Bench. Both sites are In Kane County, but Four Mile       he could assemble from the companies' consultants,
                          Bench Is in the center of the Kaiparowits area, about     Kane County's consultant and other sources. He had
                          mid-point on the new road, while the East Clark site Is   also taken an opinion survey of the Council to deter-
                          at the southern junction of the proposed road with        mine what the members considered to be the priority
                          the existing east-west state highway. Garfield County,    objectives for the new community. Twenty-seven of.

                                                                                   69

                           the 30 mem    .bers responded. At the meeting, Chris-        potential of deferring use of 80,000 barrels of oil per
                           tensen reviewed the site comparison in relation to           day and would provide additional power to the Cali-
                           the consensus priorities of the Council. The East            fornia and Arizona market areas that would facilitate
                           Clark site emerged as providing more resident satis-         continued growth. It also mentions that taxes and
                           faction at lower.housing cost And less adverse en-           royalties from the project are expected to reach $65
                           vironmental impact. The executive committee voted            million a year.39
                           to recommend the East Clark site to the Kane County            Hearings on the Draft Statement were held in Salt
                           Commissioners who would make the final choice.               Lake City and Kanab, the Kane County Seat, in mid-
                           Several days before, Governor Aampton had re-                September, 1975. Governor Rampton, the entire
                           vealed that he knew he would be beaten, but stood            Utah Congressional delegation, state, county and
                           by his belief that it was, an issue to be resolved and       local officials endorsed the project. A weekly journal
                           decided at the local level.36                                noted "a general feeling that there had been too
                              The entire Kaiparowits project-mines, generating          much delay on the Kalparowits project and that it
                           PlAnti transmission lines and new community-still            should be allowed to move forward now rather than
                           has a series of hurdles,to negotiate before anyactual        be slowly strangled to death by more public hearings,
                           construction can begin. The Federal government will          impact statements, or by more interference from re-
                           eventually determine whether the project will be             mote governmental or environmental groups." The
                           undertaken. Federal agencies have already approved           journal reported that "about one-half dozen persons
                           water contracts and coal leases. The Secretary of the        opposed the project as representative of environ-
                           I nterior must approve the transfer of ownership of the      mental groups, but there was little indication of direct
                           Federal land on which the project, including the new         environmental opposition. Most of the statements re-
                           town, will be built. Additional rights-of-way over pub-      lated more the harm of extensive people impact."
                           lic land for roads, transmission lines and pipelines         An editorial in the same edition concluded: "It'll be a
                           will have to be negotiated as will rights to extract         real blow if the whole project is canned. It'll also be
                           sand, gravel and limestone. Federal agencies will            a good example of the 'public be damned' attitude of
                           have to be satisfied that provisions are adequate for        the federal bureaucracy.    40
                           meeting construction and mining safety standards,              Only one element of the Federal establishment is
                           and for compliance with air and water quality and            known to have registered formal opposition to the
                           solid waste disposal regulationS.37                          current project proposals. The National Park Service
                              Federal decisions must take into account the EIS          has informed the Secretary of the Interior that it
                           now circulating in draft form. The EIS finds that if air     opposes the Kaiparowits plant because the proposed
                           pollution control equipment operates as designed, air        site would adversely affect enjoyment of parks in the
                           quality standards will be rmet, including plume opacity      area .41
                           standards. "Stack emission could result in a reduc-            Kane County Commission Chairman, Morrill Mac-
                           tion in visibility and an evident yellow discoloration       Donald, who is also KPDC chairman, took a poll of
                           under certain meteorological conditions. Salt deposi-        the county's 1,521 registered voters: 90 percent of
                           tion would affect more than 930 acres of vegetation          the 795 respondents said they favored the Kaiparo-
                           and soils. Sixty million cubic yards of solid waste          wits project. Mr. MacDonald testified at the Kanab
                           would be produced in 35 years which would per-               hearing on the impact statement: "The national econ-
                           manently occupy 450 acres at 90 feet in depth. The           omy needs this project and we in Kane County are
                           plant and mine would consume approximately 50,000            willing to accept it." 42
                           acre-feet of water annually. 11 38
                             The EIS cites positive economic imp      .acts for Gar-    A Statewide Planning Process
                           field and Kane Counties, currently showing the high-         Energy development is the dominant growth issue for
                           est unemployment rates in. Utah, and adds, "If               Utah today and is expected to be through the foresee-
                           adequate housing. end services are provided as pro-          able future. State government is committed to the
                           posed, very significant social impacts may be                exploitation of the vast energy resources of the State
                           avoided." The study Is more concerned with the in-           and to share them with the nation. However, the state
                           direct than the direct consequences of the project.          recognizes that enormous social and economic prob-
                           "The indirect impact of increased population would           lems will accompany rapid development, particularly
                           cause environmental effects on other. resource               for its small rural communities. The problems of an-
                           values, e.q.,.increased recreational use, which could        vironmental degradation and resource depletion are
                           cause soil erosion, destroy vegetation, disturb wild-        also factors that must be weighed in every develop-
                           life, etc. Direct impacts by the project itself on soil,     ment decision. Because the need for rapid energy
                           water, vegetation and wildlife would be less signifi-        development is a national need, and because the
                           cant." The EIS points out that the project has the           private sector will profit from the energy boom, Utah

                                                                                     70

                           looks to the Federal government and the energy com-          of computer-based projection and allocation models,
                           panies to share in the costs of providing public facili-     the Utah Process is employed to identify important
                           ties and services and of environmental protection.           consequences of large scale developments and
                                                                                        events that are proposed or may be anticipated.
                              Governor Rampton calls his basic growth policy            "Alternative Futures" are developed through testing
                           approach "optimization," the consideration of all the
                           dimensions of development. "We cannot afford to              different combinations of developments and events
                           consider only one resource-economics, social                 for their impact on the state's base demographic and
                           benefits or the environment-on its own. If we do, we         economic projections.
                           will certainly end up with less than the best possible         In discussions with State Planning Coordinator
                           future.. . . Let us pursue a responsible and deliberate      Burt Carlson, "the process" is understood to mean
                           method which takes into consideration all of the             the Utah Process. However, when his close associate
                           various factors associated with the development and          William Bruhn, Community Affairs Department
                           utilization of these limited resources.. . . If we do not,   Director, speaks of "the process" he is referring to
                           this new phase of Utah's growth could, in the future,        the workings of the intergovernmental communica-
                           be referred to as disastrous." 44                            tions procedure created by the Rampton Administra-
                             A more precise definition of Utah's approach to            tion to coordinate planning and policy formation
                           growth management appears in a description of a              within state government and between state and local
                           current project of the Office of the State Planning          units of government. In fact, Bruhn's "Utah Proce     'ss"
                           Coordinator to develop an energy facilities develop-         incorporates Carlson's "Utah Process." The two
                           ment and siting guide for use by all levels of govern-       men and their offices share responsibility for making
                           ment: "Energy related resources are scarce. Deci-            the mechanism work, with state planning generally
                           sions made by government affecting use of such               concerned with coordination at the state level, and
                           resources should be made so as to insure that the            community affairs with state-local coordination. But
                           public benefits to the maximum extent possible from          the lines are neither sharply drawn nor regarded by
                           each use. Because there are gains and losses to              either office as sacrosanct. A very high degree of
                           society which result from the use of resources, this         interoffice cooperation, the closeness of both office
                           objective can be stated as the maximization of net           directors to the Governor and the Goveenor's support
                           public benefits." Defining the concept of "net public        and active participation are fundamental to the
                           benefits," the paper says: "Major resource develop-          effective performance of the systeM.46
                           ments cause intensive impacts upon the human en-               The Utah Process-the alternative futures analysis
                           vironment and thus directly affect the quality of life       technique-was designed to indicate that adjust-
                           people experience. Some impacts are positive and             ments in proposed state and local government activi-
                           thus are gains or benefits, some are negative and are        ties would be required if other than - anticipated
                           losses or costs. Some affect the physical or biologi-        changes in economic and demographic patterns oc-
                           cal environment, some the social, the psychological,         curred. Under the Process, pfausible combinations
                           the cultural, the economic, and so on. To a great            of probable economic events are developed by Inter-
                           extent, these effects and impacts can be intelligently       departmental planning coordination groups. Once
                           assessed before the development which may cause              each set of assumptions has been specified, pro-
                           them actually takes place.. . . Although much 'ob-           jections of population and economic implications,
                           jective'data can be presented to the decision-maker,         both in magnitude and distribution, are attained
                           the need to make value judgments about the relative          through computer simulation. On the basis of these
                           importance of some impacts with respect to others,           projections state agencies are asked to formulate
                           about the gains in one area versus the losses in             contingency programs and budgets for each hypoth-
                           another, about the gains for some groups versus the          esized future, The implications of the alternative
                           losses for others, will dominate the decision pro-           futures are also projected for each of the State's
                           cedure." 45                                                  multi-county districts giving local officials the basis
                             Coupled   with determination to see all dimensions         for their own contingency planning as well as for re-
                           of development proposals analyzed and weighed is a           action to alternative state agency programs and
                           commitment to intergovernmental cooperation in               budgetsas these may affect their jurisdiction.
                           decision-making with emphasis on a strong voice for           The Utah Process is closely linked to the planning
                           local government. Some confusion surrounds the               coordination structure of state government which
                           labeling of the two elements that Utah is developing         consists of intradepartmental and interdepartmental
                           to implement its growth policy. The "Utah Process" is        groups of. state agency planners and decision
                           the name given to a demographic and economic data            makers. Within each department, the group consists
                           analysis and projection technique developed by the           of the director and his division heads who meet to
                           State Planning Coordinator's office. Through the use         consider the budgetary implications of the agency's

                                                                                     71

                          functional planning. Interdepartmental groups are         Leader of the Senate, represents the opposition party
                          organized according to the interrelationships among       to the Governor's, shares with the Governor the
                          activities of different agencies. These groups of         strong conviction that the planning process must be
                          decision-making and planning officials work on prob-      initiated at the local level. However, Senator Leavitt
                          lems of planning for the delivery of government serv-     points out that local government is as responsible for
                          ices that -concern two or more agencies. The highest      building and making effective the intergovernmental
                          level of the structure is the State Planning Advisory     structure as the state administration. He points to the
                          Committee composed of department directors, the           creation of the energy planning and development
                          budget director and the State Planning Coordinator.       advisory councils and the passage of a package of
                          Here matters of policy determination, conflict resolu-    energy resource development legislation in 1975 as
                          tion and program integration are considered. The          results of local more than state initiative .49
                          purpose of the structure is to make possible com-           The Kaiparowits Planning and Development Coun-
                          munication upward from the need s-assessment level        cil was established by Governor Rampton in August
                          and downward from the policy level. The key objec-        1974 at the request of the Kane County Commission.
                          tive is to identify,potential conflicts among agencies    The idea grew out of discussion within 'the five county
                          at the earliest stage of planning, rather than to at7     AOG on how to deal with regional problems emerging
                          tempt to deal with conflicts through a review of          and anticipated from the Kaiparowlts and other pro-
                          projects already at the implementation stage  .47         posed projects.50 A second council was created by
                             The state level structure parallels a similar organi-  executive order in Novem   ber, 1974, to  deal with the
                          zation of local units of government. On a voluntary       impact of Uintah Basin oill projects on three counties
                          basis, counties, cities, towns and school districts       in northeast Utah. The Councils are similar, but not
                          combine to form Councils of Government (COGs).            identical in structure and mandate. Both bring to-
                          Representatives of COGs form multi-county Associa-        gether local, state and federal officials and represen-
                          tions of Government @AOGs) serving each of the            tatives of state universities and private enterprise.
                          state's seven designated multi-county planning dis-       Their primary purpose is to provide a framework
                          tricts. The Governor's Advisory Council on Local          through which all available resources can be directed
                          Affairs is made up of twenty-one city and county          to make certain that proper planning and orderly
                          elected officials invited by the Governor to represent    development occur and to provide a forum where the
                          their respective AOGs. The Governor's two coordi-         objectives of economic development and environ-
                          nating  bodies-with the discordant acronyms of            mental conservat  Ion can be reconciled. A third coun-
                          SPAC and GACLA-are linked at the local level by           cil has been requested by officials in three counties in
                          state and federal agency representatives who partic-      the State's ea st-central coal region. 51
                          ipate in AOG advisory committees. The AOGs and the          The planning and development councils are the
                          Office of State Planning Coordination have formal         front line units of the network of intergove, rnmental
                          federal program coordination responsibilities as the      structures  through which Utah planning and policy
                          designated local and state clearinghouses, respec-        formation is accomplished. Five key legislative ac-
                          tively, for the review functions prescribed by the        tions taken in 1975 were a direct outgrowth of the
                          Federal Intergovernmental Cooperation Act of 1968         experiences of the councils in their attempts to antick
                          and its implementing circularS.48                         pate and deal with the burdens on local communities
                             Governor Rampton formally created multi-county         threatened by large-scale development.
                          planning districts by Executive Order in 1970. In           The package of energy resource development
                          1971, legislation established the Department of Com-      legislation responds to common interests of the'
                          munity Affairs and the Governor's Advisory Council        states, the communities and developers. The Re-
                          on Local Affairs. A recent study of the Utah inter-       source Development Act enables the prepayment of
                          governmental structure under the auspices of the          the state's 4 percent sales and use tax by a developer
                          Council of State Community Affairs Agencies               into an account from which the state can draw to fi-
                          (COSCAA) concludes: "Without the substate mech-           hance public improvements such as highways needed
                          anisms ... and the informed network of communica-         to initiate project development. The Special Service
                          tions between And among local officals and state          District Act allows exceptions frorri municipal bond-
                          administrators Utah's carefully developed inter-          ing limitations through the use of special districts
                          governmental coordination process would lack much         within which the assessed value of all property re-
                          of the effectiveness that most local observers agree      gardless of whether it is in a town, city or county de-
                          it has." The COSCAA report identifies the Rampton         termines the bonding limit. This makes it possible to
                          Administration's support as fundamental to the sys-       include the value of industrial operations beyond
                          tem's operation.                                          municipal boundaries in calculating the ceiling to
                             State Senator Dixie     Leavitt, who, as Minority      which  municipal debt may go in providing the ex-@

                                                                                  72

                            panded facilities, and services demanded by the new           defined as more    than determining physical location:
                            population brought in by the industrial development.          siting decision s@ are regarded as including whether or
                            Moreover, a special district is permitted     I a supple-     hot a proposed development is to be allowed; con-
                            meniary bonding capability if the bonds ate guaran-           sideration.of alternative locations, and determination
                            teed by a 'taxpayer-including a private entity-               of the best means to'accornmodate development on
                            within the district. The consortium of companies in           a selected site. The purpose of the Guide is to assist
                            the Kalparowits project have indicated with state             governmental units in the development of an inde-
                            and county encouragement, that they will use both             pendent capability to analyze the need for and conse-
                            these deviceS.52                                              quenc 'es of large scale projects.. The identification of
                              The Kaiparowits new community developers will               impacts-the dosts- and benefits-is to take into
                            probably also find new school, water system and               account A broad range of social and economic fac-
                            housing finance acts advantageous. The Building               tors as these bear on all segments of the affected
                            Schoolhouses Act allows school districts to enter into        population. The Guide will also address the id'entifica-
                            contracts with industrial developers to provide school        tion of unwarranted' roadblocks to project implemen-
                            facilities if the districts cannot otherwise meet growth      tation and of public service requi'rements made
                            demands related to new development. A new Lending             necessary by large projects. The: southwestern multi-
                            Program for Municipal Water Districts establish      .ed a    county district,served by the Five County Association
                            $2 million fund of supplernentary construction loan       s   Of Governments has been selected as the study area
                            for culinary water systems. A State Housing Finance           because of the pending Kaiparowits project and other
                            Agency was'created to make mortgage money avail-              proposed developments in the region. The alterna-
                            able at less than market rates to moderate income             tive futures analysis procedures of, the Utah Process
                            familieS.53                                                   will be used as a basic tool in the effort.55
                              The direct program of assistance to local govern-
                            ment administered by the Department of Community              The Uncertain Future
                            Affairs and the State Planning Coordinator's Office           Utah state government is trying to prepare for a wave
                            gives priority to communities under heavy growth              of development anticipated in the immediate future.
                            pressure. The state agencies have concentrated on             Governor Rampton refers to the energy boom as a
                            identifying and channeling to such communities Fed-           ",challenge to local government which the State must
                            eral dollars available to local government for land-          help them solve." 56 However, there is full reco'gni-
                            use planning and control, particularly for the                tion among state officials that there is an urgent need
                            preparation and, adoption Of zoning and subdivision           to improve state and, local planning, coordination
                            ordinances. The se   ven'multi-county Associations of         and decision making capability; to consolidate eco-
                            Government provide technical assistance to towns in           nomic planning and program responsibilities in state
                            this effort. A primary funding source for energy im-          government; to coordinate federal with state and
                            pacted communities has been the Four Corners                  local activitiesi and to improve state information
                            Regional Commission (FCRC), a federal-state or-               management and develop a common data base for
                            ganization for ini6rstate cooperation made up of              planning.57
                            Utah, Colorado, Arizona and New Mexico. Of the                  The 1975 legislature appropriated       funds for the
                            Commission's Fiscalr.Year 1975 allocation to Utah             purpose of improving channels of communication
                            for public projects essential to economic develop-            between the state and the Federal government in
                            ment, 43 percenf went to communities experiencing             regard to planning for the use of federal lands. The
                            an influx of energy r4elated development. The nearly          action reflected the view of state @drninistration,
                            $500,000 helped to f inarlce planning, and construction       local governments and the legislature that federal
                            of sewer and wa  -ter facilities and a vocational training    agency plans conflict with each other and with state
                            center. An a,ddition@l $@00,006, one third state,and          and local plans and that they unnecessarily restrict
                            two thirds federal, will be available in Fiscal Year          activity on public'lands. The Governor has initiated a
                            1976 to the Multi-county associations to study needs          state-federal task force on federal land resource
                            for new community facilities and services, site seiec-        planning which will be supported by the appropriation
                            tion for new towns, master planning for new and               as will similar efforts of Associations of Govern-
                            existing towns, aM economic and population Oro-               ments.68
                                     4         1   .
                            jectlons-5                                                      With a grant from the Department of Housing and
                              With a grant from the Federal Energy Administra-            Urban Development, the Department of Community
                            tion, the Office of, the State Planning Coordinator is        Affairs 1 s. making a study for the states in the Rocky
                            preparing.0 "Guide to Decision Making for Siting and          Mountain Region of impediments and probiems in
                                                 rg
                            Developmentof ne @-- y Facilitiesfor Use by all Levels        intergovernmental land resource planning relating to
                            of Governmeht Within the State of Utah'!. Siting is           energy development. the 'study will review laws and

                                                                                      73

                            administrative activities of Federal, state and local                ent planning and project evaluation. "The states are
                            governments and analyze their impact on functional                   in no position to 'go it alone' in dealing with these
                            activities such as land use, housing, transportation,                matters", says Governor Rampton. "We must have
                            economic development and social services. Recom-                     assistancefrom the Federal government and from ...
                            mendations will be made for the reshaping of laws                    private industry." 63
                            and administrative practices relating to development
                            to assist "jurisdictions to establish the necessary                  Conclusion
                            capability to insure orderly growth and provide citi-                Utah is a small state in terms of population-about
                            zens with essential public services." 59                             a million-with 80 percent of its people concentrated
                               Governor Rampton is harsh in his criticism for                    in the industrial belt of the Salt Lake Basin and the
                            what he terms "fuzzy" Federal agency policies in                     remainder widely scattered in rural communities
                            energy resource development. At a Western Gover-                     many of which are high in unemployment and low in
                            nors' Conference, he charged that "the FEA appears                   per capita income by national standards. It is in some
                            to be diametrically opposed to policies of the Interior              of these relatively depressed areas that radical
                            Department." The Governor referred to Interior's
                            "restrictive" coal leasing policy and delays in the                  change is imminent.
                            approval of the Kaiparowits coal-fired power generat-                 With its rich resource base, Utah expects and is
                            ing plant as examples of actions opposing the Fed-                   preparing for a boom in coal, copper, alunite, phos-
                            eral government's announced policy of substituting                   phate and oil exploitation; conventional and geo-
                            coal for ol(as an energy resource.60                                 thermal power generation and related industrial
                               The Kaiparowits project has brought to light the                  development. The State recognizes the critical need
                            complexities, difficulties and delays involved in the                to anticipate the consequences of growth and to
                            transfer of lands from federal to private control for                develop appropriate state policies required to guide
                            the purpose of resource exploitation when a project                  and manage development so as to maintain the
                            has been approved. A representative of the Bureau                    quality of life and environment. The state has devel-
                            of Land Management appeared before the Kaiparo-                      oped a statewide planning and policy coordination
                            wits Planning and Development Council meeting of                     system that operates with a high degree of effective-
                            September 26, 1975, to indicate that there was great                 ness, in spite of limited resources, in pursuit of Gov-
                            uncertainty within the Department of Interior about                  ernor Calvin Rampton's goal of "optimization" of
                            the best means of transferring the land and that the                 economic and social benefits, including resource
                            process would take from 11 to 24 months after final                  conservation preservation of environmental quality.
                            project approval. His analysis was not disputed by                   However, as the demand for domestically produced
                            Assistant Secretary of Interior Jack Carlson, who was                energy is translated into immense projects, it is
                            an observer at the meeting.61                                        going to take more than Utah's determination and
                               Assistant Secretary Carlson revealed at that meet-                administrative capability to protect its people and en-
                            ing that the Department was concerned about and                      vironment. Reaching the national goal of energy in-
                            deliberating on another issue troubling Utah's state                 dependence will create social and environmental
                            and local officials-the need for federal assistance in               disasters, project by project, unless concurrent na-
                            "front-end" planning and infrastructure development                  tional policies for community development and en-
                            relating to large-scale energy projects. Five County                 vironmental protection are adopted. Moreover, the
                            Executive Director, Neal Christensen, identified plan-               process of project planning, evaluation, approval and
                            ning money as "a devastating need" with State                        development must be rationalized and coordinated so
                            Senator Dixie Leavitt lamenting that KPDC: had been                  that state and local communities do not bear an unfair
                                                                                                 burden of the costs of reaching a national goal.
                            forced into "begging, borrowing, stealing planning
                            money." 62 A major source has had to be the Kaiparo-                 Footnotes
                            wits development companies which have directly                       1 .Interview on NBC "TodayShow," September 26,1975.
                            contributed money to Kane County to employ con-                      2. Governor Calvin Rampton, Address to the 26th Annual State
                                                                                                    Economic Development Conference, Salt Lake City, August
                            sultants and have provided, through their own con-                      20,1975.
                            sultants, most of the planning information, the studies              3. Governor Calvin Rampton, Remarks to annual meeting of the
                                                                                                    Council of State community Affairs Agencies (COSCAA),
                            on which the draft environmental impact statement                       Park City, September 20, 1975 (As recorded by author).
                            was based and the new community site was selected.                   4. Energy-Rich Utah Natural Resources and Proposed Develop-
                               Utah officials believe that the companies, con-                      ments, State of Utah Department of Community Affairs, Salt
                                                                                                    Lake City, August 1975.
                            surners and the Federal government should share in                   S. Program Narrative, State application for funding under Sec-
                            the cost of energy development and environmental                        tion 302 of the Public Works and Economic Development Act
                            protection, and they feel strongly that state and local                 of 1965.
                                                                                                 6. 1973 Statistical Abstract for Utah, Bureau of Economic and
                            government must have the resources to do independ-                      Business Research, University of Utah, Salt Lake City, 1973.

                                                                                            74

                                         7. Ibid.                                                                        35.  Letter to Kaiser Industries from Marshall, Kaplan, Gans and
                                         8. Op. cit., remarks to COSCAA Meeting.                                              Kahn circulated at September 25,1975 KPDC Meeting.
                                         9. Op. cit., Energy-Rich Utah.                                                  36.  Op. cit., remarks to COSCAA meeting.
                                    10.  Governor Calvin Rampton, State of the State Message, 1975.                      37.  Op. cit., Draft Environmental Impact Statement.
                                    11.  Op cit., address to 26th Annual Economic Development Con-                       38.  Ibid.
                                         ference.                                                                        39.  Ibid.
                                    12.  Op. cit., NBC "TodayShow."                                                      40.  Color County Spectrum, St. George, Utah, September 25,
                                    13.  Op. cit., 1973 Statistical Abstract.                                                 1975.
                                    14.  Senator    Carl Snow, remarks to the COSCAA Meeting, Sep-                       41.  Op. cit., Minutes of June 6,1975 KPDC Meeting.
                                         tember 29, 1975.                                                                42.  Op. cit., Color County Spectrum.
                                    15.  Op. cit., Energy-Rich Utah.                                                     43.  Op. cit., address to 26th Annual Economic Development
                                    16.  Op. cit., address to 26th Annual Economic Development                                Conference.
                                         Conference.                                                                     44.  Ibid.
                                    17.  Interview with Burt Carlson, State Planning Coordinator,                        45.  FEA Project Work Program Narrative, Office of the State Plan-
                                         September 22, 1975.                                                                  ning Coordinator, (Undated).
                                    18.  Op. cit., address to 26th Annual Economic Development                           46.  This evaluation is based on interviews by the author and L. V.
                                         Conference.                                                                          Watkins during the week of January 27-31 and the author
                                    19.  Ibid.                                                                                during the week of September 21-26, interviews that In-
                                    20.  "Utah, An Eager Keystone of Energy Development in the                                cluded the Governor, M ssrs. Carlson, Bruhn, officials through-
                                         Southwest, But What About the View." Grace Lichtenstein,                             out state government, Association of Governments officials,
                                         Copyright The New York Times, Louisville, Ky., Courier-                              and local elected officials Including state legislators.
                                         Journal and Times, August 10, 1975.                                             47.  Ibid.
                                    21.  Governor Rampton responding to author's questions at                            48.  Ibid.
                                         COSCAA Meeting Interviews with Burt Carlson, State Plan-                        49.  Interview with State Senator Dixie Leavitt, September 25,
                                         ning Coordinator, and William Bruhn, Executive Director,                             1975, Cedar City, Utah.
                                         Department of Community Affairs, September 20-23,1976.                          50.  Op. cit., Christensen, Leavitt Interviews.
                                    22.  Draft Environmental Impact Statement, Summary, United                           51.  Op. cit., Energy-Rich Utah.
                                         States Department of the I nterlor-undated.                                     52.  William Bruhn, Address to the 26th Statewide Economic De-
                                    21   Ibid.                                                                                velopment Conference, August 20, 1975, and Op. cit., Energy-
                                    24.  Op. cit., 1973 Statistical Abstract.                                                 Rich Utah.
                                    25.  Figures given by Five County Association of Governments                         53.  Ibid.
                                         based on information supplied by consultants for Kane County                    54.  Ibid.
                                         and the consortium.                                                             55.  Op. cit., FEA Project Narrative.
                                    26.  The Utah Process Alternative Future 1975-1990. Vol. 1, Of-                      56.  Op. cit., remarks at COSCAA meeting.
                                         fice of the State Planning Coordinator, September 1975.                         57.  Op. cit., Section 302 Application.
                                    27.  Executive Order, Governor Calvin L. Rampton, August, 1974.                      58.  Interview with Burt Carlson, State Planning Coordinator,
                                    28.  Ibid.                                                                                September 22, 1975..
                                    29.  Based on an Interview September 26,1975 with Neal Christen-                     59.  "Mountain Plains Energy Program", Section 701, Demonstra-
                                         sen, Executive Director, Five County Association of Govern-                          tion Grant, project description (undated).
                                         ments, St. George, Utah and on an Interview September 25,                       60.  "Policies on Energy, Vague, Clash, Governor's Charge", Salt
                                         1975 with State Senator Dixie Leavitt, Cedar City, Utah.                             Lake Tribune, September 24, 1975.
                                    30.  Ibid.                                                                           61.  Author's notes, Meeting of KPDC, September 25, 1975.
                                    31.  Ibid., minutes of the June 6, 1975, KPDC Meeting.                               62.  Ibid.
                                    32.  Ibid.                                                                           63.  Op. cit., Governor Rampton, 26th Annual Economic Develop-
                                    33.  Op cit., Energy-Rich Utah.                                                           ment Conference.
                                    34.  Ibid.

                                                                                                                    75

                           WASHINGTON ASKS ITS CITIZENS TO CHOOSE                      forces, seminars, surveys and media presentations,
                           THE STATES FUTURE                                           the program reached a statewide audience. About
                                                                                       65,000 people were active participants in one ac-
                           "The challenge before the Legislature this year is to       tivity or another during the first phase.
                           begin to establish a comprehensive growth policy,"
                           Governor Daniel J. Evans told the Washington State          Growth: Too Much, Too Fast?
                           Legislature as It convened for its 1975 session.' The       The current population of Washington is estimated at
                           Governor proposed a package of measures emanat-             just under 3.5 million, making Washington a state in
                           ing from an ambitious program to Involve citizens in        the middle rank.. The Seattle-Tacoma urban area ac-
                           the determination of the direction of state growth and      counts for over 1.5 million of the total population.
                           development for the coming decade.                          Over one half of the state's population lives along the
                                Response to our Alternatives for Washington            north-south interstate highway on the west side of the
                              questionnaire and polls indicate clearly a pref-         Cascade Range. There are only three urban areas of
                              erence for a future Washington emphasizing agri-         over 50,000 population in the eastern two-thirds of
                              cultural development and the protection and utili-       the State. The State is predominantly rural with 65
                              zation of our unique land base. We can, during this      percent of its counties having a population of less
                              legislative session, provide state leadership In         than 50,000, and 80 percent of the counties east of
                              promoting these goals.2                                  the Cascades in that category. Less than a quarter of
                              A highly partisan Legislature declined. Most of the      the State's population lives in eastern Washington.6
                           Governor's legislative initiatives were defeated or            The population of the State doubled between 1940
                           ignored. Not only was the appropriation to continue         and 1975. It grew 8 percent in each of the five-year
                           the Alternatives program cut out of the budget, the         periods 1960 through 1964 and 1965 through 1969,
                           Legislature also prohibited use of the Governor's           but the rate of growth slowed to 2.4 percent in the
                           discretionary funds for the program. A senator              first five-year period of the 1970s. There was an
                           charged that the program was an attempt to circum-          actual drop in state population in 1971 largely due to
                           vent the legislative process. "The Governor is using        the slowdown in the aerospace industry. The 1975
                           state funds to involve people in legislative ideas and      estimates show the State again growing at an annual
                           then letting people who are not elected and who are         rate of 1.7 percent.7
                           responsible to no one harass the legislature to ap-            Migration into the State has been an important fac-
                           prove them," 3 he said.                                     tor in its growth. Over 400,000 people moved into the
                              Alvin Toffler, author of Future Shock, has cited the     State in the boom years of the 1940s. The 1960s
                           Washington program as the Nation's foremost ex-             brought over 250,000 additional newcomers. The
                           ample of grass roots participation in setting goals for     slump in the early 1970s resulted in some out-migra-
                           the future. "What we're seeing," says Toffler, "is an       tion, but 25,000 new residents came tob Washington
                           experiment in getting the entire state involved in          in 1974. Only one of the six counties with over 10 per-
                           planning a strategy for survival .91 4Governor Evans is     cent population increase between 1970 and 1975 was
                           not abandoning the project. He presented the report         in eastern Washington, while five of the six counties
                           of the first plan and announced the initiation of a         with population losses were east of the Cascades.
                           second phase at a news conference in August, 1975.          The Other decrease was in the Seattle area where
                              Alternatives for Washington was initiated by Gov-        most of the out-migration was related to the decline
                           ernor Evans In January, 1974. In his announcement           of aerospace jobs. While five eastern counties lost
                           he said:                                                    population, 14 gained although generally at a slower
                                Our future need be imposed neither by the per-         rate than the western counties.8
                              sonal Interests of an elite nor the impersonal force        The economy of Washington depends on three
                              of history. It can be determined by all of the people    major sectors: forest products, aerospace, and
                              of the state if they are willing to take and devote      agriculture. One quarter-60,000-of the State's in-
                              the effort to the task .... I believe the citizens Of    dustrial employment is In timber harvesting and proc-
                              this state can, in an orderly and rational manner,       essing while another 50,000 people work In the
                              determine their future and assure such a privilege       aerospace Industry. Agriculture and allied activities
                              will also be available to generations yet to come.'      are estimated to directly or Indirectly provided em-
                              The program was designed to involve as many citi-        ployment to a quarter of the State's entire work force.
                           zens as possible in a process of considering the basic      While the number of farms is declining, their size and
                           problems facing the State, current directions the           production is growing with three-fourths of the 34,000
                           State was being moved by public policy-or Its               farms now in operation being over 1,000 acres In
                           absence-and the directions citizens thought the             size. All three major sectors are large exporters, with
                           State should be taking. Through the use of task             worldwide demand for lumber, food and aircraft ex-

                                                                                     76

                         pected to increase. The president of the company                 The Alternatives for Washington is a major effort
                         which is the state's largest exporter of forest products       to involve people in the public decision-making proc-
                         comments: "If this State had to depend on U.S.                 ess. It is the citizen participation element of the
                         Markets alone, it would exist in a national back-              state's long-range policy planning process which, in
                         water." 9                                                      turn, is a component of Washington's Program De-
                            Both agricultural and forest lands are being de-            cisionSystem of budget preparation. The first require-
                         pleted by urban sprawl. There is a vast potential for          ment of that process is "a value system-which sets
                         increasing the amount of farmland through irrigation,          forth specific goals and objectives reflecting the over-
                         but the costs in water and energy are high. "Our               all policies and priorities of state government," as
                         standard of living has been increasing at the cost of          explained in the 1975 - 77 Budget Message.       14
                         air and water purity and the depletion of natural re-            Alternatives for Washington was designed to bring
                         sources," says the official state magazine. "In fact,          the people of the state into the process of making
                         we may have to sacrifice some of our economic                  the long-range decisions which will shape the future
                         growth to maintain our quality of life here .... In-           of Washington. It consisted of several phases:
                         creas@ingly we have become aware that our natural                1.  The Statewide Task Force-a group of ap-
                         resources are limited, that sprawl is no longer                      proximately 150 people from throughout Wash-
                         practical ......                                                     ington who met for four seminars of three days
                            Over-dependency on timber, aerospace and agri-                    each. The function of this Task Force was to
                         cultural employment also is cause for public concern.                examine the spectrum of directions which the
                         "When we hit a situation when two or more of these                   future growth and development of the economy,
                         are on the downturn, then our entire state economy                   society and institutions of Washington might
                         is in trouble," State Director of Economic Develop-                  take, and to identify a range of desirable
                         ment John Larson says, "so we should encourage                       alternatives.
                         diversification." The Washington labor force is ex-              2.  The "Delphi" questionnaire ' a three-part mail-
                         pected to grow by 270,000 people over the next ten                   ing to approximately 2,400 additional citizens
                         years, so 27,000 new jobs a year will have to be                     in Washington. Participants in this program
                         created even if the current 8.5 percent unemploy-                    phase were asked to submit their opinions and
                         ment rate is not reduced and no new workers. move                    judgments concerning significant external and
                         into the State.' I                                                   Internal trends and developments which had
                            The Governor is optimistic, predicting that the                   affected or would affect the past, present and
                         Washington economy will be relatively stronger than                  future of Washington. Their assessments were
                         the rest of the nation's during the next several years.              considered by the members of the Statewide
                              Agriculture, with the world demand for food; for-               Task Force during their meetings.
                            eign trade, with growing Oriental markets; the ex-            3.  The Area-Wide Conferences-a series of meet-
                            plosive new growth in Alaska; and the nuclear                     ings held at ten locations around the state in
                            industry with its promise of tilling the gap between              June and July of 1974. Each of'these meetings
                            today's technology and the development of new                     involved from 150 to 200 additional citizens in
                            energy sources in the next century-these are all                  the program. The participants in these one day
                            part of the reason I think Washington's economy                   conferences also considered desirable goals
                            will be more stable in the next few years.  12
                                                                                              and policies for the future. Additionally, Area-
                                                                                              Wide Conference participants examined the
                         Alternatives for Washington                                          options for growth and development developed
                         The Governor, in his State of the State address to the               by the Statewide Task Force in order to identify
                         1975 legislative session, spoke approvingly of let-                  areas of agreement or conflict, to identify de-
                         ters "from a people who spoke out strongly for a fu-                 sirable statewide alternatives which might not
                         ture of moderate and needed economic growth and                      have been included, and for      general informa-
                         even more moderate population growth. There is no                    bon.
                         more of the feeling here in our State that we must be            4.  The public communication and feedback
                         first in population and that we will be best only if we              process-an effort to more broadly involve
                         are biggest. They spoke very strongly, overwhelm-                    people in the consideration of alternative di-
                         ingly for a top priority of protection for our natural               rections for the State's future.
                         environment and the conservation of our natural re-              During the summer and autumn of 1974, an inten-
                         sources."  13 The letters to which the Governor re-            sive effort was made to carry the results of the State-
                         ferred had accompanied some of the returned                    wide Task Force meetings and the Area-Wide
                         questionnaires sent out by the Alternatives for Wash-          Conference to the people of Washington. This effort
                         ington Program.                                                included encouraging statewide, regional and local

                                                                                    77

                             civic, community and special interest organizations       Office of Community Affairs. The Partnership is de-
                             to consider both the philosophy and the output of the     signed to.encourage local public officials to' partici-
                             program elements at their meetings. Materials and         pate in the state policy formation process. An opinion
                             speakers were. provided, as was a feedback mecha-         survey was conducted in 1974 asking comments of,
                             nism to allow participants in such meetings to reg-       local officials on a wide range of issues and pro-
                             ister their concerns, opinions and preferences from       grams having a bearing on state-local relations.
                             among the options developed. At the same time,            Analysis of the survey results was followed by open
                             newspapers and other publications in Washington           meetings around the State in which the results were
                             were asked to assist by running feature articles and      discussed. A report on responses was sent to state
                             in-depth analysis of goal and policy options with a       agency directors for their review and consideration
                             questionnaire form for reader feedback made avail-        prior to preparation of their final 1975-77 program
                             able. This same time period was also used for a           plans and budget requests.
                             series of television programs, some of which de-            A pilot program in regional and community plan-
                             scribed the process of identification of goal and P01-    ning was initiated under the Partnership program in
                             icy options carried out by the Statewide Task Force       Cowlitz and Wahkiakum Counties in the spring of
                             and at the Area-Wide Conferences. Other programs          1974. Its purpose was to demonstrate in a practical
                             dealth with the products of these meetings; with the      manner a state-local partnership framework within
                             desirable alternative directions identified for the fu-   which working relationships could be worked out that
                             ture economic, social and institutional growth and        effectively combined state and local resources with-
                             development of Washington. These programs in-             out encroaching on local responsibilities. The State
                             cluded the opportunity for viewer comments and            provided fund-using federal planning assistance
                             questions via telephone call-in.                          money under the HUD 701 program-as well as
                               The final television program in this series provided    technical assistance and staff planning resources
                             maximum opportunity for public participation. It re-      while local governments provided local funds and
                             viewed the growth and policy options covered in           staff. The program's objectives are to develop long-
                             earlier programs and asked viewers to express their       range and comprehensive plans for physical and hu-
                             preferences among these on a form. This form then         man development in the region and the integration of
                             was returned to the Office of the Governor for inclu-     state and local programs to implement these plans.
                             sion in the final results of the Alternatives for Wash-     The Cowlitz-Wahkiakum Governmental Confer-
                             ington Program. The opinions were supplemented by         ence, made up of eight general purpose and eight
                             a random-sample survey to further assess the future       special purpose governmental units in the two coun-
                             growth and development desires of the people of           ties, sponsored the program which was managed by
                             Washington. During this same period technically           an intergovernmental team of Conference and State
                             trained personnel from colleges and universities,         personnel. Thirteen citizen task forces surveyed the
                             businesses, and state and local governments were          region to determine needs in such areas as health
                             asked for analysis and assessment of the implica-         care, transportation, education, aging citizens and
                             tions of these growth and development alternatives.       law and justice, to identify problems in economic de-
                             A working group was formed consisting of represent-       velopment and environmental protection and to con-
                             atives from the citizen groups that set overall targets   sider the structure and functioning of local govern-
                             and the technical analysts who addressed the impli-       ments and intergovernmental organizations in the
                             cations and details of implementation of these tar-       region.
                             gets. The tasks of this group were to  "consider those      The citizen committee assigned the task of de-
                             growth and development alternatives which had             signing a regional planning system adopted a format
                             received substantial approval from the people of          very similar to that used in the Alternatives for Wash-
                             Washington, to consider priorities among these, and       ington program. Their five-step process took them
                             to begin to devise programs and legislation which         through: (1) tentative goal formation; (2) issue and
                             would set the State of Washington on the path to-         problem identification; (3) development of alterna-
                             ward its citizens' desired future. Additionally, the      tive futures; (4) review and evaluation of futures;
                             output of the Alternatives for Washington Program         and (5) policy formation. After arriving at tentative
                             was intended to provide a comprehensive, integrated       formulations, the task force held 26 community dis-
                             basis for governmental program and budgetary plan-        cussion sessions and from a questionnaire used at
                             ningfor the 1975=77 biennium and the yearsahead.          these meetings determined citizen opinions and pref-
                             The Washillngton Partnership                              erences. These were communicated to the other pro-
                                                                                       gram groups which were preparing specific plan-
                             A companion program to the Alternatives for Wash-         ning documents on regional development, housing,
                             ington is the Washington Partnership effort of the        comprehensive community services and service to

                                                                                     78

                        the aging. The completion and adoption of seven              over the State. New job opportunities should be
                        planning volumes ended the first phase of the pro-           created in smaller communities. The State should
                        gram in June, 1975.15                                        control major utility and facility location to promote
                                                                                     dispersal.
                        The Cillizens'Cholces                                           Population dispersal should be supported through
                        At the onset of the Alternatives for Washington Pro-         developing industries that are suitable to less popu-
                        gram, 2,400 selected invididuals were asked in "The          lated areas, and that use resources available in these
                        Delphi Study" series of questionnaires to identify           areas, such as energy production, agriculture, tim-
                        current and potential future trends and events that          ber processing, light manufacturing and information
                        would have a major impact on the State during the            -communications activities. Inter-city public trans-
                        coming decade. The consensus prediction was that             portation and rural road networks should be im-
                        there would be considerable population growth, de-           proved. Selective use of tax incentives could be used
                        terioration in the quality of life, increased urban          to guide private investment decisions to reinforce
                        sprawl with loss of prime resource land, migration           settlement dispersal.
                        pressure, increase in national and world, demands               The problems of rural isolation could be over-
                        for. Washington's food, power and forest products,           come by innovative communications systemsfor com-
                        and continuing trouble in the national economic sys-         mercial, educational and cultural use according to
                        tem. Respondents identified Washington's primary             the Committee. Health care and services to the aging
                        problems as tax base inequity, environmental de-             will have to be improved in the more remote areas.
                        terioration, careless use of land, population influx,        State services should be comparable for all areas,
                        energy shortage, unemployment, inflation, poverty,           particularly in education, requiring a higher level of
                        crime, racial discrimination, and lack of govern-            state funding and tax base sharing among com-
                        mental credibility.16                                        munities.
                          The Delphi group's thinking about problems and                The citizens of Washington want economic growth
                        probabilities was passed on to the regional groups           sufficient to meet the employment demands of the
                        and the state citizen committee for their considera-         state's workers, but not to provide opportunities that
                        tion in the process of determining what the desirable        will attract outsiders. Their objective is a 3 to 5 per-
                        future would look like, and how the State could be di-       cent annual growth rate. Top priority would be as-
                        rected toward that desirable future. Through the sum-        signed to agricultural development in the allocation
                        mer and fall of 1974 the Statewide Task Force re-            of water and energy. Aquaculture, forestry, energy
                        ceived the pondered the results of area meetings,            development and other activities using the state's
                        mail and telephone questionnaires and the television         resource base would be encouraged under environ-
                        and newspaper campaign. A total of 31,388 people             mental and resource use controls.
                        actually returned questionnaires in one of the five             The resources of the State should be surveyed and
                        different opinion sampling approaches. It is esti-           the carrying capacity of land, water and air deter-
                        mated that about twice that number of people par-            mined. Regulations are needed to require that re-
                        ticipated in the Alternatives program in one activity or     newable resources are used at no greater than the
                        another. I I                                                 replacement rate; that the use of irreplaceable re-
                          By December 1974, the Statewide Task Force was             sources is restricted; and that water quality, air
                        prepared to reveal its conclusions. In a day-long            quality and land resources are protected. Land use
                        meeting with Governor Evans on December 19, the              planning as an intergovernmental activity with a high
                        Committee presented their public policy recommen-            degree of citizen participation is advocated to pre-
                        dations in eight categories: population growth, eco-         vent loss of prime resource lands, allocate uses on a
                        nomic development, natural resource conservation,            rational basis and preserve critical natural areas,
                        land use, transportation, human concerns, environ-           scenic areas and historic sites. It is proposed that a
                        mental concerns, and governance.                             program be planned that would constrain energy use
                         The composite picture of the Washington these               and increase energy efficiency in agriculture, manu-
                        citizens want to see emerging over the next ten years        facturing, transportation, buildings and settleme  nts.
                        is one that is growing moderately in population and             Finally, the Statewide Task Force advocated not
                        economic opportunity, dispersing and diversifying its        more but better government. It called for the reform
                        employment base, conserving its resources, protect-          of government through the adoption of a new state
                        ing its environment and improving the performance            constitution that would consolidate powers and
                        of its government. They say population should in-            clearly delineate executive and legislative functions.
                        crease at no greater than the national rate. Family          It would also make possible the reorganization of
                        planning education and services should be expanded.          local governments as the basis of geography and
                        Future population growth should be widely distributed        efficiency in service delivery. The tax structure would

                                                                                  79

                              be modified to lessen the incidence of regressive                I think the futures selected were indeed idea-
                              taxation. The task force endorsed greater citizen              listic. Yet I suspect that virtually everyone who
                              participation at all levels of government planning             took part in Alternatives realized that we could not
                              and policy determination and in the grass roots politi-        have the ability to direct ourselves totally toward
                              cal process.18                                                 these futures. We can make a difference, however.
                                The opinion surveys sketched         eleven different        It won't be a dramatic shift and we can't turn the
                              pictures of future Washington, each    with a dominant         State toward a selected future overnight, but the
                              theme and a combination of other elements. These               individual decisions made in 1975, followed by
                              were composites put together b@ the Task Force to              those made in succeeding years, will collectively
                              display the principal alternative futures that emerged         move us toward the futures we selected.22
                              from its workshops and those of the areawide groups.           At a news conference, the Governor more directly
                              Over 26,000 preferences were tabulated in the news-         addressed the ideal of population dispersal:
                              paper survey. Of these, 23 percent favored "Agri-                Obviously the State itself, as a government, can-
                              cultural Washington" emphasizing increased agri-               not dictate, nor should it, the population distribu-
                              culture, aquaculture and forest management; 20                 tion of the State. But the operations, the incentives,
                              percent favored "Balanced Washington" combining                the opportunities which can exist through proper
                              agricultural expansion and international trade; 15             planning both public and private can, I think, insure
                              percent chose "Northwest Lifestyle" highlighting               the maximum of opportunity in our rural sector and
                              quality of life and environmental concepts. Least              doing so help to diversify Washington's population.
                              selected choices-getting 2 and 3 percent of the                it was at that conference that the Governor an-
                              vote-were "Urban Washington" which placed                   nounced a second phase of the Alternatives pro-
                              priority on more liveable cities and "Post Industrial       graM.23
                              Washington" which pictured a technological world of         Words into Action
                              service and communications industries. The remain-
                              ing 28 percent of the choices were spread among the         On January 13, 1975, the Governor devoted a sub-
                              six other suggested futures.19                              stantial part of his State of the State address to the
                                The Cowlitz-Wahkiakum Partnership project also            Legislature 'to describing the Alternatives process,
                              pictured alternative futures, in this instance for the      discussing the citizen response and proposing im-
                              region. Only four choices were offered and they were        mediate measures that should be taken to carry out
                              more distinctly differentiated than the eleven Alterna-     some of the priority proposals that had emerged from
                              tives models. Of the citizens responding to the             the Alternatives program. He followed up with a
                              Partnership questionnaire, 46 percent selected the          special address January 22 on energy, conservation
                              "environmental enhancement" option that more or             and agricultural proposals and then submitted his
                              less combined the elements of the three models that         1975 Executive Request Legislation package con-
                              together won 58 percent of the statewide vote. in           taining specific legislative proposals. The Legislature
                              contrast with those favoring moderate, non-polluting        did not pass any of the Governor's program. Never-
                              growth, 10 percent wanted to strictly limit further ex-     theless, the Governor had placed an agenda on the
                              pansion, 27 percent favored promoting major ex-             public record that was responsive to many of the
                              pansion and 9 percent were satisfied to let existing        dominant themes of the Alternatives program. His
                              trends prevail. Because the Partnership futures were        legislative package was clearly reflective of those
                              portrayed in terms of public actions,. the latter vote      themes.
                              was cast against any government interference in de-            Although he had made the proposal many times
                              velopment activitieS.20                                     before, Governor Evans placed particular emphasis
                                The general goals and policies that emerged from          on the creation of a Department of Transportation
                              the work of the citizen groups in the Partnership proj-     that would consolidate a number of transportation
                              ect closely paralleled those of the statewide Alterna-      functions in an integrated agency. The development
                              tives: employment within the region for region res'i-       of- public transportation as an element in a balanced
                              dents; land use control; utilization of local natural       statewide transportation system was a principal ob-
                              resources on a sustained yield basis; diversification       jective of the proposal.
                              of employment; minimal pollution, and enhancement              Energy conservation was another objective, and
                              of environmental quality. Emphasis was placed on            this objective inspired two other proposals: the crea-
                              education and job training particularly for low-            tion of a state ene rgy office to coordinate state en-
                              income and minority group   S.21                            ergy programs, and the initiation of resource recovery
                                When asked about the idealism of the futures de-          as an untapped energy resource as well as a natural
                              scribed in the Alternatives questionnaire, Governor         resource conservation measure. Also in the energy
                              Evansresponded:                                             field, the Governor asked that existing state authority

                                                                                         80

                        over the siting of nuclear power plants be expanded          farmers of the 1889 Constitution sought to diffuse
                        to create a "one stop" permit procedure governing            power and thus prevent its abuse, the results of the
                        all energy facilities development. This bill also re-        executive article they fostered are bewildering, in-
                        quired state review of all advance planning for en-          efficient, an unaccountable bureaucratic web which
                        ergy development and facilities location.                    not even the bureaucrats understand, let alone the
                           Environmental proposals Included an act to regu-          ordinary citizen." 26
                        late oil transport on Puget Sound to prevent oil spills        The constitution is very detailed and restrictive on
                        and to prohibit new oil transfer facilities on the inner     the powers of local government, forcing counties and
                        Sound. A wild, scenic and. recreational rivers preser-       municipalities to come to the Legislature for special
                        vation proposal was submitted. To dampen land                bills to undertake the many activities of modern local
                        speculation, a land sales excise tax would have cut          government that were not envisioned in 1889. One
                        deeply into profits from fast land turnovers. Land use       result in a multitude of special taxing districts-for
                        planning was mandated under a proposed land re-              cemeteries, water systems, dikes, drainage, fire
                        source management act. The process was to involve            and sewers-often with geographic and jurisdictional
                        both the state and local governments, with the latter        overlapping. Local officials have so little power that
                        bearing primary responsibility for preparing and             they cannot be expected to solve local problems,
                        adopting development regulations subject to state            says a Commission staff paper. "Talented leaders
                        review and certification. These regulations were to          are discouraged from running for local office." 27
                        protect agricultural, forest and mineral resource              Governor Evans created the Commission on Con-
                        lands from urban encroachment.                               stitutional Alternatives in July 1975 after the Legisla-
                          The Governor requested reinstatement of govern-            ture had failed to approve his request that a consti-
                        ment authority to plan, finance, construct and op-           tutional convention call be put on the November 1975
                        erate irrigation projects to expand the state's crop         general election ballot. His Executive Order instructed
                        ,producing potential. At the same time, he proposed a        the Commission to undertake a comprehensive and
                        leasing system and fee for water use in recognition          extensive public education program with respect to
                        of the need to assert greater state control over this        constitutional reform alternatives. The objective is to
                        critical resource as well as to provide funds for further    convince the 1976 session of the legislature to ap-
                        water resource development.24                                prove a general election vote in the fall of 1976 on the
                          The 'measure given highest priority by Governor            question of convening a constitutional convention in
                        Evans was a call for a constitutional convention. Al-        the summer of 1977.
                        ternatives program participants had concluded that             The Commission's role is not to advocate specific
                        much of what they felt had to, be done could not be          reforms but to Inform the public of the problems
                        accomplished without constitutional change. Wash-            created by the present constitution. The Alternatives
                        ington's 1889 constitution was written in the populist       for Washington recommendations were not specific
                        era when fear of trusts and monopolies, and par-             except that the new document should be "a brief,
                        ticularly the railroad companies, was exceeded only          flexible expression of fundamental law." 28
                        by distrust of government and government officials.
                        The document is four times the length of the United          Alternatives, Second Phase
                        States Constitution and is a detailed prescription for
                        the operation of government. It put a ceiling on leg-        In August, 1975, Governor Evans presented the pub-
                        islative salaries, limited the length of sessions and        lished recommendations of the Alternatives state-
                        restricted the legislator's powers to raise and allocate     wide task force and announced that the program
                        funds. "The [constitutional] delegate's goal was to          would continue, saying:
                        promote honesty and accountability, but after 86               It is very easy to select a rather utopian future, to
                        years the result is a hamstrung group of citizen leg-          list all of the goals we would like to see achieved.
                        islators... frustrated over their inability to put money       It is quite another thing to recognize the costs of
                        where it is most needed and stymied in their efforts           getting to those goals. And phase two will deal
                        to create a workable, fair taxing system," says the            with the trade-off s-the policy trade-offs and the
                        staff of the Commission for Constitutional Alterna-            cost trade-off s-which are necessary in order to
                        tiVeS.25                                                       achieve the goals which people have stated that
                          In the executive branch, power is divided among              they wanted. I suspect that in the course of phase
                        eight elected constitutional officers and a framework          two we may find that there are some changing
                        created that has permitted the creation of more than           opinions of people, a recognition that if the cost
                        365 boards, commissions and agencies, some ac-                 Is too high or the policy is too difficult, they may
                        countable to the Governor, some to the Legislature,            chose to modify or change the ultimate goals they
                        some to both, and some to neither. "Although the               seek.

                                                                                 81

                              The Governor said he was asking citizens to at-           that agency planning is consistent with broader Ad-
                            tempt to measure the trade-offs and costs of their          ministration goals and policies. The results of the Al-
                            proposals in order to provide the ground-work for the       ternatives program will be used as a framework for
                            executive and legislature to plan specific actions "to      the consideration of the direction of agency planning
                            build the kind of state we seek." 29                        both short-term-relating to the Fiscal Year 1977-79
                              Regional groups of the Statewide Task Force were          budget-and for the next ten yearS.31
                            convened in a series of late September and early
                            October meetings to discuss the next phase of the           -Conclusion
                            program, preparatory to a meeting of the full task          The report of the first phase of the Alternatives for
                            force with the Governor in October. That meeting            Washington Program expresses citizen frustration
                            launched a 14-month program that was intended to            with government:
                            result in an agenda for the 1977 session of the new           During the past two decades we have experienced
                            legislature that would be elected in the fall of 1976.        the advent of mass communications. At the same
                            In January, 1976, groups of the Task Force, rein-             time, our educational level has risen tremendously.
                            forced by technical and political people, began the           More and more, the general public is as well in-
                            task of translating the broad statements of the first         formed on critical issues as its public officials, and
                            phase into specific proposals for implementation. The         is just as capable of making intelligent decisions.
                            implications of these proposals would be analyzed on          But what has happened? Our system allows very
                            the basis of who would pay, how much, who would               little direct involvement. People become frustrated
                            benefit, at what sacrifice in values, and what re-            with government; they have begun to feel unable
                            sources or abilities were essential to accomplish             to influence its decisions. However, we know that
                            other desired goals. The conclusions and proposed             people want to become involved more directly.32
                            actions resulting from this process would once again          The report cites a response to a survey question
                            be publicized and surveys made to get public reaction.      indicating that 90 percent of those questioned placed
                              The fall meetings had been the first for the State-       increased citizen participation in.government as a
                            wide Task Force members since the previous De-              high or medium priority. Another illustration of public
                            cember. In the interim, the Legislature had cut the         sentiment showed that about three fourths of the
                            Alternatives appropriation from the budget, and had         respondents in the mail and telephone surveys
                            specifically prohibited the use of state funds for the      wanted more issues decided by popular referendum
                            program. Task force members expressed concern               and fewer by the Legislature.33
                            that the program had a "negative mandate" from the            This latter attitude prompted Governor Evans to
                            legislature, and that its continuation, using federal       tell the Legislature that there was "a deeply felt and
                            funding, would further alienate legislators. However,       clearly expressed dissatisfaction with the institutions
                            members of the legislature who were members of              of representative government." He went an to say:
                            the group argued for efforts at reconciliation and con-       There is no more serious threat to our society than
                            tinuation of the program. Discussions centered on             an electorate which feels so frustrated by the gov-
                            approaches by task force members to legislators to            ernmental process that large numbers reject vot-
                            explain the program, its broad, non-partisan citizen          ing as an effective method of participation and who
                            base and its recommendations. The general agree-              prefer that decisions be made by plebiscite rather
                            ment was that neither local nor state elected officials       than by their elected representativeS.34
                            really would become interested in the program's               Governor Evans has developed a system of citizen
                            proposals until they were translated into specific          participation that has been used in goal setting and
                            actionS.30                                                  policy determination and other arenas of state gov-
                              Meanwhile, within the Evans Administration, a             ernment, and that is designed to reinforce the proc-
                            systematic effort was underway in the fall of 1975 to       ess of representative government. Legislators have
                            analyze current state policies in the light of publicly     been antagonistic, apparently believing that the pro-
                            endorsed preferences, as reflected in survey re-            gram encroaches on legislative prerogatives. The
                            sponses, and state goals, as formulated by the area-        citizen participants in the Alternative process realize
                            wide and statewide Alternative groups. This process         that the program and the Legislature will have to find
                            will lead, beginning in the late fall, to consultations     common ground or the program will not be effective.
                            with state agencies on their policy directions by the       The resolution of the issue of the constitutional
                            state planning staff of the Office of Program Planning      convention-because so many other issues hinge on
                            and Fiscal Management. Under the state's integrated         it-could determine the nature of the role of citizens
                            planning and budgeting process, the agencies must           in deciding Washington's future.
                            develop a program framework for their budget re-              Washington is not a state with severe current
                            quests, working with the state planning staff to assure     economic difficulties, and its economic future looks

                                                                                     82

                                     promising. Nevertheless, Washington's citizens are                                     7. Ibid.
                                     worried about the pace of change, uncertain about                                     8. Ibid.
                                                                                                                           9. Washington State, March 1975 edition, Office of Program
                                     the future, and unsure of their ability to sustain the                                   Planning and Fiscal Management.
                                     quality of life of the State. They have expressed,                                  10.  Ibid.
                                                                                                                         11.  Ibid.
                                     through the Alternatives program, a vision of what                                  12.  Ibid.
                                     they want their life to be, and they have begun to                                  13.  Governor Daniel J. Evans, Address to Joint Session, January
                                     translate this vision into proposals for the resolution                                  13,1975, Olympia, Washington.
                                                                                                                         14.  State of Washington Budget, 1975-77 Biennium, December
                                     of current issues and the design of concrete meas-                                       1974.
                                   .ures to move the State toward chosen goals. The                                      15.  Description of the Partnership program is based on interviews
                                     Governor has asked the citizen participants to take                                      wlt@ Richard Hernsted, March 24 and October 7, 1975 and a
                                                                                                                              review of the demonstration program grant application and the
                                     on this translation job while at the same time instruct-                                 program reports.
                                     ing the agencies of state government to reconsider                                  16-  Op. cit., Alternatives for Washington.
                                     policies and objectives in the light of the citizen's ex-                           17.  Ibid.
                                                                                                                         18.  Ibid.
                                     pressed preferences. Most significantly, the Gov-                                   ig.  Ibid.
                                     ernor has made the call for a constitutional conven-                                20.  A Regional Planning System, Cowlitz-Wahkiskum Govern-
                                                                                                                              mental Conference, February 1975.
                                     tion a primary objective of his Administration for the                              21.  Ibid.
                                     coming months. Alternatives for Washington will                                     22.  Op. cit., Washington State.
                                     finally be evaluated on the basis of the results                              of    _23- Transcription of News Conference, August 21. 1975.
                                                                                                                         24.  Preserving Our Heritage: Forging our Future, 1975 Legislative
                                     these efforts.                                                                           Request Program, Governor Daniel J. Evans, Olympia, Jan-
                                                                                                                              uary 1975.
                                                                                                                         25.  Washington's Constitution, A Time for Rebuilding, Commission
                                     Footnotes                                                                                for Constitutional Alternatives, Olympia, September 1975.
                                                                                                                         26.  A Primer for Constitutional Revision, Commission for Consti-
                                     1 . Governor Daniel J. Evans, Special Address to Joint Session of                        tutional Alternatives, Olympia, August 1975.
                                         Washington State Legislature, January 22, 1975, Olympia,                        27.  Op. Cit., Washington's Constitution.
                                         Washington.                                                                     28.  Op. cit., Alternatives for Washington.
                                     2.  Ibid.                                                                           29.  Op. cit., News conference of August 21, 1975.
                                     3.  "Alternatives impact Eyed," The Sunday Olympian, August                         30.  Authors notes: meetings of Statewide Task Force regional
                                         24.1975.                                                                             groups at Olympia, October 1 and Seattle, October 2, 1975.
                                     4.  Ibld.                                                                           31.  Based on interviews with Nicholas Lewis, Assistant Director,
                                     6.  Alternatives for Washington, Vol. 1, Office of Program Plan-                         Office of Program Planning and Fiscal Management, State of
                                         ning and Fiscal Management, May 1975, Olympia, Wash-                                 Washington, Olympia, October I and 2,1975.
                                         Ington.                                                                         32.  Op. cit., Alternatives for Washington,
                                     6.  Population Trends, Office of Program Planning and Fiscal                        33.  Ibid.
                                         Management, State of Washington, Olympia, July 1975.                            34.  Op. cit., Governor Evans Address to Joint Session.

                                                                                                                                            U.S. GOVERNMENT PRINTING OFFICE:   1976--0-207-552

                                                                                                                     83

                                                                                                            COASTA,

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                               May 1976
                               U.S. Department of Housing
                               and Urban Development