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measure of change in real inventories. The turnover rate information will be used to determine the proper time lags for the price index to reflect the different prices at which commodities enter stocks over a period of time.
The import ance of inventory data and the needs for improvement have been clearly established. The proposed programs for improvement are essential in order to aid policy-makers in their analysis of current economic conditions.
Another important program of the Census Bureau calls for improving the comparability of commodity classifications used in collecting data on imports, exports, and domestic production. The requested funding is needed to enable the Department of Commerce to meet its obligations as enumerated in the Trade Act of 1974.
A modest increase in funds is requested by the Bureau of Economic Analysis for fiscal 1977. However, the proposed increase will facilitate the expansion and strengthening of two BEA data series that are extremely valuable and widely used by Federal, State and local goverment officials as well as by non-government analysts and decision makers.
BEA proposes a revision and strengthening of its estimates of personal income for States, metropolitan areas, and counties. A major improvement in this series will be in the incorporation of new data on dividends, interest, and on non farm proprietor's income and expenditures information. We also understand that annual estimates of personal income for metropolitan areas and counties would be available 13 to 14 months after the close of the calendar year rather than the present 17 to 18 months. The in provements proposed are responsive to several highly important needs of statistics
more reliable personal income data at the local level as well as an improvement in timeliness in making the data availa's le.
The second program calls for an expansion of input-output statistics for analyses of energy and material shortages. This project would expand the detail in BEA's national input tab les to provide additional information on the production and consumption of each type of energy and other potentially scarce basic materials and resources. The enlarged and refined data system wo'lid be used to evaluate the impact of short ages of energy and other basic materials and resources on production, employment, costs, and prices, and to evaluate alternative policies to minimize the impact. Furthermore, it would be used to evaluate the impact of changes in the level and composition of GNP on the requirements for these materials and resources in order to anticipate potential supply problems in the future, and to trace the effects of alternative policies to balance supply and demand for the materials and resources. In addition, it would contribute to analyses of the possible spreading of price increases for scarce resources to other sectors of the eccnoty. A unique feature of input-output analysis is that it permits estimat ing the impacts on each of the industries as well as on the economy as a whole.
The need for this type of information was made clear during the period following the Arab oil embargo. Calculations, using BEA's input-output tables, of the effect of GNP of oil supply shortages were very tentative and subject to large errors because of the lack of the type of information which would be deve loped in this program. The proposed project would provide a much firmer data base and the capability to respond to a wider range of policy questions.
The Federal Statistics Users' Conference appreciates the opportunity afforded by the Subcommittee to present our views on the budget requests for statistical programs of the Bureau of the Census and the Bureau of Economic Analysis of the Department of Commerce.
LETTER FROM OTIS R. BOWEN
May 19, 1976
Dear Mr. Chairman:
I am writing on behalf of the Committee on Crime Reduction and Public Safety of the National Governors' Conference to request favorable consideration by the Subcommittee on State Justice, Commerce and the Judiciary of adequate FY 77 appropriations for the Law Enforcement Assistance Administration. This important and valuable program is strongly supported by the Governors who recognize the contributions that it has made in the fields of criminal justice and crime prevention. I am sure I speak on behalf of all Governors when I say that adequate funding for LEAA ranks as one of our highest legislative priorities for the 94th Congress.
Recently this program has received sharp criticism from several quarters. This criticism received support recently from the counterpart House Appropriations Subcommittee which cut LEAA's FY 77 appropriation to $600 million. If sustained, this cut would be disastrous to the states and localities. The greatest percentage of LEAA funds is invested in state and local projects, not in federally administered programs. The greatest impact of cuts in LEAA's present funding level would be felt in these same state and local projects.
The following specific project examples describe merely a flavor of the broad range of useful efforts undertaken at the state and local level as a result of the LEAA program.
In Iowa, LEAA funds have enabled the extensive use of communitybased corrections to relieve the crowded conditions of state penal facilities.
In Missouri, block grant funds have been used to help provide employment opportunities for young adult offenders in an attempt to divert them from the criminal justice system.
In Massachusetts, block grant funds have helped maintain an alternative high school which accommodates, as part of its program, numerous young people with histories of involvement in the criminal justice system.
In Indiana, LEAA funds have helped the Indianapolis Public Schools establish an alternative school rehabilitation program for youthful offenders in the sixth to eighth grades.
The Governors strongly support the block grant nature of the program. We believe the block grant concept is an important development in federalstate relations and strongly resist efforts to recategorize block grants and remove decision-making authority from the state and local level. LEAA has assisted the states to develop comprehensive criminal justice plans, and to generally improve the criminal justice planning process at the state and local level. This is no small accomplishment. It would be regrettable in the extreme if, at the point when states are genuinely beginning to demonstrate progress in the fight against crime, Congress should make severe cuts in LEAA appropriations. The Governors hope you will respond to the accomplishments and demonstrated progress of the program, and not to criticism that may be out of date, no matter how well intentioned.
Specifically, the National Governors' Conference requests your Subcommittee to appropriate the fiscal year 1976 funding level or a sum as close to that as possible. The severe cut already voted in a House Subcommittee, coupled with earmarking of specific portions of the appropriation, will result in severe and deep cuts in the block grant portion of the program. This will disrupt innumerable ongoing efforts at the state and local level, and severely cripple the block grant concept. We urgently hope your Subcommittee will support funding for LEAA at the FY 76 level of $810 million, or as close to that figure as your Subcommittee deems appropriate.
As you know, the Regional Development Act of 1975 (P.L. 94-188) which amends the Public Works and Economic Development Act of 1965, authorizes the creation of new Title V regional commissions. Accordingly, on March 11, 1976, the Commonwealth of Puerto Rico and the U.S. Virgin Islands submitted a joint request to the Secretary of Commerce seeking designation of the two areas as the Antillian Regional Development Commission.
The Commonwealth of Puerto Rico and the Virgin Islands face serious obstacles in the path to economic development: extremely high unemployment rates (18.6% in Puerto Rico, April 1976), almost non-existent natural resources, high rates of inflation, and complete dependence on imported petroleum for our energy requirements. Both our jurisdictions could benefit greatly from the creation of a regional commission which would provide a vehicle for stimulating the economy, promoting economic growth, and strengthening regional cooperation.
We welcome the opportunity to foster regional economic development and are extremely interested in moving ahead with the plans to create the Antillian Regional Commission as soon as possible. However, since there are no funds for the new Title V regional commissions included in the Department of Commerce's appropriations bill for FY 77, we are at a stand-still.
We would greatly appreciate your support in ensuring that sufficient funds will be provided in the State, Commerce and Justice appropriations bill for FY 77, to enable the creation and operation of the Antillian Regional Development Commission in the immediate future.
On behalf of the National League of Cities and the United States Conference of Mayors, we urge the Senate Subcommittee on Appropriations for State, Commerce, Justice and the Judiciary to recommend, at a minimum, an FY 77 appropriation of $810,000,000 for the Law Enforcement Assistance Administration (LEAA).
We are aware of the many recent criticisms leveled at the LEAA program that have received wide circulation in the press. We too have criticized the operations of LEAA. But these statements should not overshadow the importance that the cities of our nation place upon the valuable assistance provided by LEAA. While it is true that crime has not been reduced nationwide, it also is true that LEAA funds account for only 5% of the total criminal justice expenditures. More important, LEAA funding is directed to criminal justice agencies, which can respond to crime only after it has occurred. The relationship between criminal justice system improvement and crime reduction is only marginal at best.
The positive accomplishments of LEAA funding in achieving a fair, effective, humane and efficient criminal justice system in our cities and states cannot be discounted. An excerpt from a recent article in Nation's Cities, expresses these sentiments:
"LEAA has allowed localities to take advantage of new technology,
Strategies and programs now regarded as commonplace in
Equally important as the funding of action programs has
The creation of local criminal justice planning units has provided local governments with unique opportunities to coordinate their criminal justice functions, analyze crime patterns and trends, develop complementary programs, explore alternatives to traditional organizational practices, and provide expert advice to local elected officials on criminal justice matters."
A $210,000,000 reduction in FY 77 appropriations as recommended by the House Subcommittee on Appropriations for State, Commerce, Justice and the Judiciary would be devastating to our cities. Our mayors, city council members, and city managers will be forced to drop programs which are in the early stages of funding and which show promise of success. Localities do not have the resources to fully fund so many of these programs at this time. The Subcommittee should be aware, however, that local governments are assuming the costs of many projects when LEAA funds expire. We are also spending millions of dollars of local revenue to match the LEAA dollars.
The National League of Cities and United States Conference of Mayors have been on record for a number of years in support of full funding for LEAA, and urge the Subcommittee to consider our position in your deliberations.
I am writing to express the concern of the state legislatures with the appropriations level for the Law Enforcement Assistance Administration (LEAA). As you know, the House Appropriations Committee has recommended a fiscal year 1977 level of funding at $600 million. This drastic reduction will have an enormous impact on successful criminal justice programs operated at the state and local levels of government.
State legislatures are asked each year to provide matching state funds for LEAA projects and to assume the costs of successful demonstration projects. I am confident that neither state legislatures nor the U.S. Congress are interested in funding disappointing programs. However, it has been our experience that in spite of some problems, the successes of the LEAA far outweigh its failures. The state legislators who are members of NCSL's task force on Criminal Justice and Consumer Affairs annually report on numerous innovative and successful criminal justice projects in all fifty states. Successful LEAA projects funded through state block grants include: a diversion project in Missouri which channels young adults from the juvenile system into an employment training program; a courts project to improve legal services to Indians; a preventive burglary prevention project in Oregon; in Kentucky, a corrections project which coordinates job placement for ex-offenders; a juvenile delinquency project in Massachusetts which funds a series of community-based treatment facilities as alternatives to institutionalization; in Rhode Island another adult corrections project which improves educational programs at the adult correctional institutions by providing individualized educational experiences to incarcerated persons and ex-offenders; in Louisiana a white-collar crime project which handles consumer complaints and was instrumental in revising consumer protection legislation.
As you can see, these projects are geared towards people--not equipment. Our criminal justice system, including police, courts and corrections, would be much less effective had LEAA funding not been available to institute these and many other projects which are vital to the reform of our criminal justice system.
Not only does the House Subcommittee recommendation reduce the LEAA budget to $600 million, it also earmarks $40 million for the Law Enforcement Education Program (LEEP) add $40 million for Juvenile Justice and Delinquency Prevention. The National Conference of State Legislatures has strongly encouraged the funding of both of these programs--but we have advocated adding these amounts to the budget of LEAA not deducting them from a much reduced budget level of $600 million.