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IV. New Government -
A New Federal-State Partnership
The Clinton Administration Has Forged A New Partnership
with States and Local Governments.
Giving States Flexibility. President Clinton has given 29 states -- more than quadrupling the previous total -- the right to slash through federal regulations to reform their welfare systems. We have also used waivers to give states more flexibility to manage federally-funded program such as Medicaid and Food Stamps.
Empowerment Zones -- Community-Based Decisions. In December, President Clinton and Vice President Gore initiated the Community Empowerment Initiative by designating and funding 9 Empowerment Zones and 95 Enterprise Communities as the beginning of a ten-year experiment in community-based decision-making.
Performance Partnerships. The President's FY 96 Budget proposes a first set of agency-by-agency Performance Partnerships, to be followed by others this spring. Performance Partnerships provide increased flexibility to states and local governments on how a program is run in exchange for increased accountability for results.
The Department of Housing and Urban Development will consolidate 60 programs into three flexible, performance-based funds; transform public housing into a system that works for people and communities; and create an entrepreneurial Federal Housing Corporation that increases homeownership and affordable housing opportunities.
The Department of Transportation will consolidate programs that the Government now funds into three programs: a unified transportation allocation to states and localities; a discretionary grant; and state Infrastructure Banks.
The Public Health Service proposes to consolidate 108 activities into 16 grant categories and build performance incentives into the authorizing legislation.
The Environmental Protection Agency proposes to allow states to consolidate up to 12 specific grants, e.g., air, water, and hazardous waste) so they can target resources toward their most pressing priorities.
The Agriculture Department proposes combining funding for 14 rural development loan and grant programs and authorize its state directors to allocate funds between these programs.
The Oregon Option
A federal inter-agency team has worked with state and local officials in Oregon to design and test a results-oriented approach to intergovernmental service delivery. For example, Oregon will measure changes in the overall teen pregnancy rate rather than count the number of clients served as in the past.
Initially, the effort will focus on stable families, a developed workforce, and healthy children. Under the redesigned system -- which will reduce red tape and administrative burdens for state and local governments -- all partners will work toward clear performance goals for government programs and be accountable for achieving results. This new federal-state-local partnership could serve as a model for improvements nationwide.
Other Examples of A New State-Federal Partnership
Common Sense. The President endorsed consolidated planning processes for
Indiana andWest Virginia that will let them coordinate nearly 200 federal grants to help
children and families.
Flexibility. The President has signed legislation to
increase state and local flexibility in the Goals 2000, which allows six states to waive
federal requirements to target their money to better achieve national education goals.
Cutting Paperwork. Federal, state and local agencies have collaborated to integrate
application forms in Atlanta, reducing six separate applications for assistance programs
totalling 64 pages to a single, eight-page form.