Questions and answers of executive departments on: Impact on national balanced growth policy of President's revenue SUBCOMMITTEE ON RURAL DEVELOPMENT OF THE Washington, D.C. The subcommittee met, pursuant to notice, at 10 a.m. in room 318, Old Senate Office Building, the Honorable Hubert H. Humphrey Chairman of the Subcommittee, presiding. Present: Senators Humphrey (presiding), Allen, Curtis, Dole, and Bellmon. STATEMENT OF HON. HUBERT H. HUMPHREY, A U.S. SENATOR FROM THE STATE OF MINNESOTA Senator HUMPHREY. We will call the Subcommittee on Rural Development to order. This is a subcommittee of the Senate Committee on Agriculture and Forestry. The members of this committee are Senators Ellender, Eastland, Allen, Curtis, Dole, Bellmon, and myself. I am privileged to serve by appointment of the full committee chairman as the chairman of this subcommittee. The procedure this morning will be an opening statement by the chairman, then statements as desired by members of the subcommittee. We will then proceed, if it is agreeable with the members of the subcommittee, to have our three witnesses from the administration make their presentation as a panel. Following the presentation on the part of the administration witnesses we will then have a period of questioning. In other words, we will have a noninterrupted presentation by the three secretaries that we are honored to have with us today. I want to welcome to the subcommittee Secretary Hardin, Secretary Kennedy, Secretary Romney. We are very grateful for your willingness to take the time and come to us and share with us your views, particularly on the administration's program for rural community development. The Agricultural Act of 1970, under title 9, known as Rural Development, outlines the mandate of this subcommittee. It says the Congress commits itself to a sound balance between rural and urban America. The Congress considers this balance so essential to the peace, prosperity, and welfare of all of our citizens that the highest priority must be given to the revitalization and development of rural areas. Title 9 requires reports from the administration. The subcommittee will hold hearings on these reports and it is our purpose to establish a constructive dialog with administration witnesses and administration spokesmen. I will open with a restatement of our purpose. This is an important day for those of us on the Committee on Agriculture and Forestry, because it marks a beginning for us—the launching of a vigorous effort on behalf of the people in rural America. Our new Rural Development Subcommittee was formed by our chairman, Senator Talmadge, to come to grips with a parity question-not so much parity in farm prices, as social and economic parity for the millions of people in small-town America. Two-thirds of our substandard housing is in these areas, and I am sure Secretary Romney will address himself to that. While bigcity dwellers have their phone calls beamed by satellite to foreign countries, the eight-, 10- and 12-party line is still not unusual in the country. Out in the countryside the quality of education, health care, job training, transportation, and decent social amenities simply aren't what they ought to be in far too many places. And most important, it's nearly impossible, in some places, to find a job that pays a living wage, and I think we are aware of the fact now that the smaller farmers in particular require supplemental income from jobs other than from agriculture production. I believe I can speak for all of the members of our subcommittee when I say that we believe in a freedom of residence: namely, that the quality of life in rural communities of America should be such that our people are not shoved into our big cities either through economics or politics. They must be given a choice and a real choice if we are to break the cycle in which millions have left the country to go to the cities, where problems of overcrowding are strangling our urban centers. It is the view at least of the chairman of this subcommittee that much of the problem of urban America is due to this outmigration from rural America. I would just call it the "hemorrhage of our rural countryside." In short, we need a national growth policy to influence and promote a balance between urban and rural America. Our effort will be bipartisan. This is not exclusively a liberal nor conservative task. And our work will be as essential to the futures of our big cities as it is to country people. Although our committee is new, we have learned that there are not too many experts in this field, so we will take to the road. We will go to the heart of America and get some answers. We will also hold a series of hearings in Washington. Hopefully, when we are finished, when we have completed our task or at least are somewhat into it, we can translate our problems into challenges and create legislation which will achieve some solutions. But our committee is not alone in considering the troubles facing our country communities. President Nixon has transmitted a message on Rural Community Development Through Revenue Sharing, and the administration has recently submitted enabling legislation, embodying the proposals contained in that message. The language of the President's message on this matter shows some good insight into what is going on in rural America, and we are anxious to hear the details of what the administration believes the remedies to be through a formula of special revenue sharing. With us today to answer some of our questions are four distinguished men. We are honored that they can be with us today and to present their testimony. They are Secretary of the Treasury John Connally; Secretary of Housing and Urban Development George Romney; and George Hay Brown, Director of the Bureau of the Census. We will hear from the Director of the Bureau of the Census on the patterns of population shift which I believe will be a most interesting topic for us. Now, this is to lay the groundwork what I have said, for these hearings. I must say to the witnesses, the Secretaries who are here, we will undoubtedly want you to come back to us at a later time. We hoped we might just get a premise laid here so that when we go to the countryside we can talk intelligently about the programs of this administration. I believe in giving these programs a fair hearing and every possible consideration. You will be treated accordingly. A copy of the bill on revenue sharing, S. 1612, and supporting data will be inserted in the record at this point. (The bill referred to, S. 1612, and supporting data, follow :) [S. 1612, 92d Cong., first sess.] A BILL To establish a revenue-sharing program for rural development Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Rural Community Development Revenue Sharing Act of 1971." STATEMENT OF FINDINGS AND PURPOSES SEC. 2. The Congress hereby finds and declares that many rural areas of the Nation, while rich in natural resources and potential, have lagged behind the rest of the Nation in economic growth, and that the people of these rural areas have not shared in the Nation's prosperity. The Congress recognizes the need for increased efforts by Federal, State, and local governments to provide the economic base that is a vital prerequisite for vigorous self-sustaining growth and necessary to bring the rural areas of the Nation to their full potential. The Congress declares that in order to generate increased employment opportunities and individual incomes in rural areas, to improve the quality an accessibility of rural community facilities and services, to stem out-migration from rural areas, to encourage private investment in industrial, agricultural, and commercial enterprises, to solve farm, home, and community problems, to protect and conserve natural resources, and to establish and improve public works and development facilities, a system by which States may share in national revenues is necessary and desirable; and that in order to implement an effective nationwide rural community development policy and thereby to enhance the national prosperity, it is necessary to terminate and modify certain development programs now undertaken by the Federal Government. TITLE I-DEFINITIONS DEFINITIONS SEC. 101. For the Purpose of this Act: (a) The term "rural area" means any county, parish, or similar political subdivision, including all area within the territorial confines thereof, which either has a population density of less than one hundred persons per square mile or is not included within a Standard Metropolitan Statistical Area; (b) The term "rural population" means the total resident population, as defined and used by the United States Bureau of the Census, of a rural area; (c) (1) The term "rural development" means rural community development programs or activities of a State which directly benefit the residents of a rural area within such State and are (A) undertaken within a rural area; (B) certified by the local government within a rural area as directly benefiting the residents of such area; or (C) certified by the Governor as directly benefiting the majority of the residents of rural areas within said State. (2) The term "rural community development programs and activities" includes, but is not limited to, programs and activities which (A) Establish and improve public works, public service, and development facilities; (B) Encourage private investment in, and promote the establishment and expansion of, industrial, agricultural, and commercial enterprises; (C) Prevent conditions of excessive unemployment and underemployment, alleviate unemployment caused by loss or curtailment of large industries or Governmental activities, generate increased employment opportunities, and assist in manpower development; (D) Assist in generating increased personal and corporate income; (E) Further the economic development and growth potential of underdeveloped areas and help such areas to help themselves achieve lasting improvement; (F) Improve the quality and accessibility of rural community facilities and services; (G) Stem outmigration of families, labor, and capital from rural areas and encourage migration to such areas; (H) Assist in the solution of farm, home, and community problems; (I) Promote the conservation, development, and proper utilization of human and natural resources; (J) Encourage the solution of problems of wide geographic significance; (K) Establish and improve educational facilities and encourage the development of improved educational methods; (L) Establish and improve land, water, and air transportation systems and services for goods and passengers; (M) Assist in the solution of problems related to law enforcement activities; (N) Enhance domestic prosperity by the establishment of stable and diversified local economies and improved local conditions; (0) Assist in the establishment of decent, safe, sanitary, and comfortable housing; (P) Establish and improve health facilities and services and generally promote improved health and nutrition of residents of rural areas; (Q) Establish programs and projects of the type authorized under title I of the Demonstration Cities and Metropolitan Development Act of 1966; and (R) Provide direct financial incentive to industry to create jobs in rural areas. (d) The term "rural per capita income" means the average personal income of the rural population of a State; (e) The term "fiscal year" means the fiscal year of the Government of the United States; (f) Except where otherwise indicated, the word "Secretary" means the Secretary of Agriculture or his delegate; (g) The word "State" means the several States, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam; (h) The word "Governor" means the chief executive officer of each State or his delegate; (i) The term "Attorney General" means the Attorney General of the United States or his delegate; (j) The term "standard metropolitan statistical area" means a standard metropolitan statistical area as that term is defined and used by the Office of Management and Budget; |