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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 z z z K x x x x K x x 0 m a 0 0 0 > > > > M M M 0 z 0 > > 0 m > r, < M Z z x Z Z > > m r, m 0 0 > m m > > z X * 0 0 r. z r- c A i@ > 0@>Cw -<MTC,,g Z002i M22>zo-n>oRcD > , --I o a m a r- > e a * M M 0 Z Z A > m > > z > > 0 > > > o > m > > X m > x z z A 3) --1 0 z > > z > > -< F" 0 0 m m co CL c x x x x x x CL m 0 cr r U) x x x x x x x x x x x X no m x x x x x x x x x x x x x x x x x x x x x x x X lo, m Z -4 0 V. ow C r. M M S Z - 0 Pur x x x x x x x x x x x x x X X X X x x CZL Cl CL w r a m CL -C m r- 0 x x x x x x x x x x x x x x x x x x X.0 MZ CL a ex 0-0 5-0 CL 0 x x x x x x x x x x x x x x x x x x x X x x x x x 3 x X x X X X C, !L EL x x x x x x x U 0 0 0 z z z z z <c m --I M M 0 0 M x 0 0 m m m m > X Z c 0 Z m r- 5 M M * * * 0 0 z z > 0 0 < 0 m o C- m Z 0 m 00 z z Cf) C) 0 0 m :D cn Fu C) > M X W Z C) --I M > > r- < > > > - o m A m > > ;K m X m z z o 0 z 0 0 > - > z > =0 3 -< C) > 0@ C) o 3 CM a x x x x x CL 0 3 C) o C0 cr0 CA RI oz, x X x X x to00 C 0 0 cn CL 0 c E. x x x x x x x x x x x x x x x x x = 3S 0 3 -0 CLn n 0 CL x x x x x x x 90 CL C V = C CL Ir to am. ro0 x x x x x x x x x x x x x 3,9 00 CL3 CL V c x x x x x x X X X X X X X X x X X X X n 'o C, x x x x x X x x x x x x x x x x 0 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 L L r- XX m G) -n D 0 0 0 > > > > 0 0 0 w ;@ =.- 0 0) 0) (0) N w 5 0 CL (D 0) R (D 0 cD =r CL 0 to Q 0. a cr 'D m > m z C)x m m C) 0 m cn CA z 0 m C) > > 0 c = CL M0) CDM = = - ;2,0 00) _0 (D 0 - 0 ?r- C, 2! 0 cr CD -0 (D CD :5.- 0 010 < o F4 0) 00) W 3 0= (a (D (,3 g). sq. r, 3 0 w 0 0 cc - :3 CD m m 0 3 M z rr co '< :3= m 0 CD m rn 0 CDa C), 0 <D m CD M 0 CD m o 0 0 :) 3 Q3 m 0 0 m m 8 = 0.6 - 0 > (D :50 (o CD (D CD - l< 0 0 CD CD C-) co cc 0 0 0 m0 , 0 G < CD 0 86 C-1), 0 CD CD 0 > m :3 0 CD CD 0 0 (D 0 (a 0 0 =t 0 (1) m :3 rD CD Q 0 -v m 0 a ca -D 0 0 0 0 C) m 0 0 C) CD C x CD CD c a (D - m 00 0 = 0 g- CD la 0 F), - w- 17m 0 0 m 3 0 0 c m 0 - CD CD 3 ca 3 CD U) = l< 0 CD 0 0 0 2. p m 0 < 3 -w S - - - R M , - m m CD 0 > - (D 0 - 3 r- 0 < p 2* 3 CL =r (n C@ CD 0 3 - 0 (D m 3 CD 0 0 CD 0 COD CD 0 i@ M to 3 C) 0 C) cn (D 0 0 F. m 0 -0 < 0 0= 00 ID <0 rl- < (D 0) < 0 CD 0 cc 0 0 0 0 < CD m 3 . 0 3 ' q @ 3 3 (D 0 3 0 CD 3 C) 3 0 3 CD - 0 T 5 3 0 (D m CD -C -4 ca X. f x x X x x x x x x xx x x x x x x x x x x @ m I-Ixl I m m x x x x x x xx x x x x x x x x x x x x z m m x x X x x x w x X x X xx x x x x x x x x x x x x x x X m z x x x x x x x x X x x x x x x x x I X1 ><I I I I - x I x x x 0) x x x x x x x x x x x x -4 x x x x x x x x x x x x x x x X x x x co F I x X x x x x xlx x x x x x x x x x x x X 0 x X xI x xI X1 >< x xx x x x x x X1 X 0 0 -0 m 0 -0 =:: (Da (D 00 0 0CL (7 Er 0- 0 = =a = 8 , 0 0 0 0 (D CD 00 W < == 0 cb 0 T.Mo M 3 0 M 0 CD (D < < 0 !2-0 CD -Do G) 0 0 3 (D CL =r CO) < c 0 0 0 z z zz z z z z OX ON oc 0 0 0 = CL = 0 0) 0 1*9 0 =r 06 0) 0 'a M (a Is 0 C) 0 0 0) T. 0 0 si -C 3 CD 0 a) M 'o 0 0 0 Ic 0 Pff 0 < --10 m (1) G) 0 m 0 m mm C) m m m -n 0 00 CD - 0 5; o m CD = r. :2 = 32 m 0 w = = 0 c !R E; 0 < 'a o cD (D (D (D 0 M (D (D 0 CD 3 a CD 0 to < CE 1 '4G !@ 0 0 0 3 - 0 0 = u@ CD (D 0 W ID (a po ID CD m 0 M M M (0 M CL,< c 3 z L7 :3 3 3 0 to 0 0 = 0 0 > M - m CD o 0 0 '0 0 (D CL o cn CD cD m :0 m CD m 0 m CD Im l< M CD 0 n CD 0 0 0 0 0 0 > < 0 CL m 0 > CD m m > K 0 Cl to (D < (D g, 0 > (0 3 -- 0 0 (a CD C) '< CD (D 3 < '< m CD 00 (a 0 0 (a S. 8 9 < a :3 0 0 < 0 0 CD CO 0 0 m 0 m 0 m 0 0 r_- 0 M (D x X < CD X (D lb CD CD CD (D (D 0 CD 0 'R (D 0 0 0 > z CD CD (D -v z CL 0 c r- 0) = 0 0 > 0 0 3 m (D CD =t =t (D (D C) -0 C) c 0 w 0 < cA c 3 q (D FF (D A. :3 m X x x x x x x x x x x x x x x x x x x X 0 z x x x x x x x x x x x x x x x x X 1XI Ix I 1XI z c x x x x x ca m lxlxl x x X x x x x Ix x Ix x x x x x x x X x x x X lb x x x x Ix x x Ix x 1XI x x x x x x X x x x x CA x x x x x X X CD x x x x x x x x x x x x x x X .4 A. x x x x X X x x x x x x x xx x x x x x x 0 x x x x x x x x Ix x x x xx x x x x x x x CD x x x x x x x x x x x x xx x x x x x x m m -0 c (j) Cl) > -0 0 -n -0 = = 2. 0- 0 0 CL 0 03 0 -0 C 0 CD CD m 0) (D 0 5. 1 F = 3 a M CL 3 0 > 0 (A Q > 0) 06 @< a 0 (D =r 0 CL 0 X CL m 0"o = (a CD 0 0 3 o u, CD 0 0 -CLI, ..R , , = 0 CD m 0 q (D' 0 se. 0 0 -0 r CL 3 '0 0 < 0 3 a 6 0 0 CD CD o(o - 0 (D -0 = l< m , F (Q 0 (A = CL 0 CL 0 0 0 (D to CD 0 0 ch 0 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 CA z z z z z 0 0 0 8 0 c 0) 0 o 0 0 M cr= 0 0 = 0 0 No 0 CL CL W 1=0 I a = c 0 a CO M 0 - '19-8505 =0 m 0 m x CL 3 CL m =0 10. 93 0 fD x cr (D Fo C 0 X x x x x x x X'X x x x x x x M (D x CL V X r-.,o x x x 0 0 >e 2 0CL toN x x x x x x x x x x x x x x x x x x cc CD C P U)m x x x x x x x x x x x x x m MCL 0 0 M x x x x x x x x x x x x x x x x X@ = F - 52 9 X@ x XH I c x > 2. a CD CD w w w w w ccl CID = w Qc@ a @Xl x x x x x x x x > CD 0 CD CD co w > w > > 0 0 PA ca > CD co @W@ C 010 020 x x x x x x x x x x x x x x x x x x x 0 CL 3R x CL 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 U) (D zzzzzz CD z A M a a 0 0 0 > (D (D (D (D 0 CD (D 0 0) 0) g) 0 0 0 W M 0 0 0 0 5 < = * 9 0 6 = U) 0) - 0 :z 5' C. :, 0) :0,. 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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 z z z z z z r. x x r. Cr x ;K1 F a p noo o p> > > > 02 m M 2 m > w M 2t M > > r- M 0 0 >M M ChZ z 0 r Z r- F-A Z I z x ja > Z 0 ; .> N C- 0 > r m 0 0 0 0 ;K> M C 0 > Z > (A > > > M ;K M = z > > > > - a a M 0 Z M 0 0 > > 0 C 0 0 > m x z 2 > 0 0 a 0 w 0 0 a w CD 0 a 0 0 aa a 0 0 3 C7 :5.>:4 C., -0 -035. C., 0 0 0 MM a a 0 - = 0 (DC = =t V (Do 0. 0 w F 3 10 2)-0 00 w w M )0 0 = C S = W C) MMz. 4 , 0 0 0 3 0 Z '0 3 0 C) C) 3 3 0 0 0 :2 (D0 0 0 0 0 0 3 0 0 0 0 0 0 0 3 3 0 3 - - - - - - - C) :3 0)0 M 0 3 ; 0) -3 r 0 0 0 r METM 0 0 0 0 0 0 0 0 0 0 C 3 r 8 2 0 0 > Cl)3 2. CL3 = :3.< 3 3 3 0 C0)0 3 0 C 3 0 z !@ C) 3 3 3 O> SZ2- C-1)B 0 3 > CL (0 (D L ;? (A> F'. 2. > S. C) 1=19, 0) CL 0 LO (D CO0 M 0 -0> < > K K z 3 C: > > U, CL0 ID > (D > 3 C)Q Y, CO 0 (D 0) =t CL SI (D 3 00 z CD (D C) CL 0 0 3 Lb m 0 0 0 (D Sa. - (ft=a (I @; 3 5 M 3 q 3 M 3 '0= 0 (a 0 (n 0) _0 0 (0 CD w > = 0 2. CL = 0 M 0 3 (D -4 0 0 (D (D m < 0 w M 0 M (D 0 rp m :3U F) 2 8 ; (0 U CL M 10 3 3 M z 0 > 0 3 M (a 0 0 3 r (D m 0"x 0 0 ic a x x x x x x x x x x x x x x Fiscal Advice C X1 IxIxI z Interlocal x1XI 1XIX x x x x x x 1 >4 x x x x x xIx x Cooperation_ x x x x x x x x x x x x x x x x Coordination of x I I I >'I x. X. xState Activities x Ix x xI Personnel x x x x x x x x x x x x x XI (a I I I I I I I Training x x x Local Financial x x Supervision 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 V 0 00 M-4 M0 0 M M M M> C C 0 z M r.M -4 -.40Z0 >0 0 0 M CO0 x (A z -<Z 0 z > > r,< > 7,M > > m 0 0 z 4r,V > > -Z > 0 a 0 0 0 a r- 00 CD > (DM (D CD CD0> :Z.CD 0 = - 'a 0 w 0 0 210" 3 3 @43 B a 'A 0(D 0 0 0 0 M M < 0 = M 0 M 3 o 0 3 30 0 0 a 3 3 3 no 0 air 0 p <D M 0 0 C 0 0 3 0 2 0 (a 3 3 3 B - 0 2) >= 0 cL33 M 3 3 M 0 CL 2) 02. 2. C<D 0 0 > :3 > > > (n CL 3 ,=t= '0= =:0 CD :33 > 3 w 0 FD OL CD =;, M 0 Ch cn 3 0 0 CD 0 rn3 3 < 0 C 0 > z 0 0 (a M 0 CD 0 x 3= (D 0< 0 ia0 0 CD 0 > (D m CL < 3 (D M (D M- 0 Cx m CD (b 'a 3 x z w 0CD w 3 0 3 a CL (D 0 0 z -4 3 z 3 a 0 m 0 0 3 x x x Fiscal Advice >,I >,I x@>,l 1>, X X X x x >,I I I>, interiocai E; Cooperation Coordination of x x x X x X x xx >+'I I State Activities X x xx x x Personnel a I 1XIX Training Local Financial 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 Assistance 3 Regional Planning x x Xx X x x X x xx Coordination 0 Research and X x xx x x x x x x xX Information x x Housing Programs 1><I>,l lxl>, @n x x X x X x Economic Develop- 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, 3 6668 00001 3542 \-UTIOv ,,UTIO/V 4P C@I 0'UTIOV HUD-CPD-748-2 May 1976 U.S. Department of Housing and Urban Development