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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 and
West 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.
