I. Text of President's Williamsburg Speech, June 24, 1957- III. Press Release Announcing Establishment of the Joint IV. Position Papers of the Joint Staffs: A. Older Vocational Education Programs.. B. Practical Nurse Training C. Fishery Trades and Industry.. E. Natural Disaster Relief___ F. Atomic Energy. 12 12 13 13 13 13 13 13 13 13 13 13 13 13 13 13 14 17 14 15 V. Summaries of Tax Information Memoranda Prepared for the Joint Committee_ 48 1. Federal and State Inheritance and Estate Taxes___ 48 49 3. Tobacco Taxes 50 Part: I Preface Formation of the Committee The Joint Federal-State Action Committee was created by the President of the United States and the Governors of the 48 States. Speaking before the Conference of Governors on intergovernmental relations in Williamsburg, Va., June 24, 1957, President Dwight D. Eisenhower said: "I suggest, therefore, that this Conference join with the Federal administration in creating a task force for action—a joint committee charged with three responsibilities: "One to designate functions which the States are ready and willing to assume and finance that are now performed or financed wholly or in part by the Federal Government; "Two-to recommend the Federal and State revenue adjustments required to enable the States to assume such functions; and "Three-to identify functions and responsibilities likely to require State or Federal attention in the future and to recommend the level of State effort, or Federal effort, or both, that will be needed to assure effective action." The Conference of Governors accepted the President's proposal. For years it had concerned itself with problems of Federal-State program responsibilities, the division of tax revenue sources between the Federal and State governments, and with emerging problems calling for governmental action-Federal, State, and local. The Conference, accordingly, authorized its chairman, Gov. William G. Stratton of Illinois, to appoint a committee of governors to serve with Federal representatives chosen by the President on the Joint Federal-State Action Committee. The Committee's Approach With respect to approach and procedure the initial deliberations of the Joint Committee developed a number of views on which there was substantial agreement: 1. The Need for Strong State Government. The Federal system requires strong, responsible State governments. The degree to which the States satisfy the governmental needs of modern society deter mines in large measure the strength of the whole system. The Committee believes that the diversity of local needs requires action whenever possible at the State and local level. The Committee wishes to emphasize that not all of its recommendations are purely in the area of financial interchange. Its deliberations have resulted in recommending several additional means of strengthening State and local government through the assumption of functions proper to their levels. 2. No Impairment of Programs. The Committee wishes to emphasize that its recommendations are not intended to reduce the scope or effectiveness of the programs considered by it. The Committee acknowledges the value and importance of each of the programs. It emphasizes that there are desirable flexibilities within programs to be achieved from a fresh view more responsive to local needs and aspirations. The major consideration before the Committee is whether certain functions can logically be assumed at the State and local level and be carried on with even greater effectiveness than under present arrangements. In these instances the Committee feels that local control over these programs is desirable and necessary and that the States should and can obtain resources to finance them. 3. Action Based on Existing Research. The Committee emphasized at the outset that it was created to function as a "task force for action" rather than a study group. It recognizes the value of the many major studies of intergovernmental relations that already have been made. These are particularly exemplified by the Report of the Commission on Intergovernmental Relations, the many reports in specific areas by the Council of State Governments and others. 4. First Steps. This initial phase of the Committee's mission is a limited one: To recommend actions involving a select number of specific functions and taxes which would increase the responsibility of the States, and to define more clearly certain responsibilities that will continue to be shared by Federal and State governments. As another part of its mission, the Committee was asked to identify emerging problems which are likely to require State or Federal action, or combined action, in the future. This the Committee has started to do, and it identifies some of these in this Report, as well as presenting a number of recommended actions. 5. The Committee's Role in Defining Intergovernmental Relations. The Committee has found in its deliberations that there is great potential value in advance review of emerging problems. It feels that adequate attention by the States and the Federal Government to these emerging problems as they arise may be the best procedure to insure the proper distribution of responsibilities among the various levels of government. |