the State-local relationship, because there are those conflicts, as you well know, sir. Governor DRISCOLL. The answer to your question is "Yes." We are well aware of the fact that the municipalities have their problems just as the States have their own problems. Mr. FINE. You hope to solve them, too? Governor DRISCOLL. We think it is just as important that we provide a guide for the future relationship between the State and its municipalities as between the State and the Federal Government, yes, sir. It is very largely for that reason that the representatives of our county and municipal officials have joined with the governors in this conference this afternoon. Mr. BONNER. If there are no further witnesses then, we thank you. Governor DRISCOLL. Unless there are some of these municipal county officials who would like to speak to the committee. We would be most happy to have them do so. Apparently, they are content to stand on what we have said. Mr. BONNER. The committee will stand adjourned. I want to express the appreciation, my appreciation and that of the committee for the time you gentlemen have taken to come and express your views, show your interest and demonstrate your interest in this subject. The committee will continue hearings on the bill. If your group has any statement that it cares to file later, we will be glad to put it in the transcript of the hearings. Governor DRISCOLL. We appreciate your courtesy. Mr. BONNER. We will include as part of the record S. 1146. (S. 1146 is as follows:) [S. 1146, 82d Cong., '1st sess.] AN ACT To establish a temporary National Commission on Intergovernmental Relations Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, FINDINGS OF FACT SECTION 1. Since the establishment of the federal system of government, no comprehensive survey has been made by the Congress of the relationships existing among the National, State, and local governments of the United States; of the allocation of governmental functions and powers among these three governmental levels, or of the distribution of jurisdiction of governmental functions and powers exercised by two or more governmental authorities. Prior to a determination of necessity or desirability of a reallocation of functions and powers or of redistribution of jurisdiction over them among the levels of the Federal system, it is necessary that such a study and survey be made. It is the belief of the Congress that such a study and survey of past and present conditions and the determination of what legislation should be proposed can best be accomplished through the cooperative efforts of officials of government and representatives of the people. ESTABLISHMENT OF THE NATIONAL COMMISSION ON INTERGOVERNMENTAL RELATIONS SEC. 2. (a) There is hereby established a temporary national bipartisan commission to be known as the National Commission on Intergovernmental Relations (hereinafter referred to as the "Commission"), which shall be composed of twelve members as follows: (1) Four appointed by the President of the United States, two of whom shall be officers of the executive branch of the Government, and two private citizens; (2) Four appointed by the President of the Senate, two of whom shall be Members of the Senate, and two private citizens; and (3) Four appointed by the Speaker of the House of Representatives, two of whom shall be Members of the House and two private citizens. (b) Each person appointed as a member shall be experienced with, or have knowledge of, the major problems in the field of intergovernmental relations. Of the members enumerated in paragraphs (1), (2), and (3) of subsection (a), not more than two members in each class shall be from any one political party. Any vacancy in the membership of the Commission shall not affect the Commission's powers, but shall be filled in the same manner in which the original appointment was made. (c) The Commission shall elect a Chairman and a Vice Chairman from among its members. (d) Four members of the Commission shall constitute a quorum. (e) Prior to making the appointments of members of the Commission as prescribed in paragraph (2) of this section, the President of the United States, the President of the Senate, and the Speaker of the House of Representatives shall consult with and be advised by representatives of organizations of State and local government officials. DUTIES OF THE COMMISSION SEC. 3. (a) It shall be the duty of the Commission to submit to the Congress specific recommendations based upon a study of— (1) (A) the past and present relations between the National, State, and local governments of the United States; (B) the past and present allocation of governmental functions and powers among the National, State, and local governments of the United States; (C) governmental functions and powers exercised by two or more such governments, and the distribution of jurisdiction over such functions exercised by each such government; (2) the fiscal relations among the National, State, and local governments with a view of determining the possibilities, and mechanism for achieving, on a continuous basis, consistency in the fiscal policies of the several levels of governments. In making such study the Commission shall give particular attention to (A) intergovernmental tax immunities in terms of the problems they create for governments and taxpayers, and means for resolving these problems; (B) revenue sources and means for reducing or eliminating intergovernmental tax competition; and (C) grants-in-aid, tax sharing, and other similar measures for adjusting financial resources to the needs of State and local governments, with a view to proposing guides to the use of such devices and improvements in their operation. (b) The Commission shall submit interim reports at such time or times as the Commission deems necessary, shall submit a comprehensive report of its activies and the results of its studies to the Congress on or before December 31, 1952, and shall submit its final report not later than March 31, 1953, at which date the Commission shall cease to exist. The final report of the Commission shall propose such constitutional amendments, legislative enactments, and administrative actions, as in its judgment are necessary to carry out its recommendations with respect to each level of government. POWERS OF THE COMMISSION SEC. 4. (a) The Commission may, in carrying out this Act, hold such hearings, require by subpena or otherwise the attendance of such witnesses and the production of such correspondence, books, papers, and documents, take such testimony, and sit and act at such times and places as the Commission deems advisable. Any member of the Commission may administer oaths or affirmations to witnesses appearing before the Commission. The Commission may delegate the powers conferred by this subsection to any member or to a group of members of the Commission. Sections 102 and 104 of the Revised Statutes, as amended (2 U. S. C. 192, 194), shall be applicable in the case of the failure of any person to comply with the requirements of any subpena issued and served upon him by the Commission. (b) The Commission is authorized to secure from any department, agency, or independent instrumentality of the executive branch of the Government any information it deems necessary to carry out its functions under this Act; and each such department, agency, and instrumentality is authorized and directed to furnish such information to the Commission, upon request made by the Chairman or Vice Chairman. (c) The Commission shall advise and consult with representatives of labor, industry, commerce, agriculture, taxpayers' organizations, State and local governments, and other interested groups, and may establish such advisory committee or committees as may be desirable from among such representatives. Members of any such advisory committee may be reimbursed for travel, subsistence, and other necessary expenses incurred by them at the direction of the Commission in the performance of their duties. (d) The Commission shall have the power, without regard to the civil-service laws, to appoint and fix the compensation of an executive secretary, who shall be the chief administrative officer of the Commission, and such other personnel as it deems advisable, but the rates of compensation of such personnel shall not exceed the rates prescribed in the Classification Act of 1949 for comparable duties. COMPENSATION OF MEMBERS OF THE COMMISSION SEC. 5. (a) Members of the Commission who are appointed from among Members of Congress or from the executive branch of the Government shall serve without compensation in addition to that received for their services as Members of Congress or in the executive branch, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Commission. (b) Members of the Commission, other than those to whom subsection (a) is applicable, shall receive compensation at the rate of $50 per day for each day they are engaged in the performance of their duties as members of the Commission and shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of their duties as members of the Commission AUTHORIZATION FOR APPROPRIATIONS SEC. 6. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act. Passed the Senate July 23 (legislative day, June 27), 1951. Attest: Mr. BONNER. We stand adjourned. LESLIE L. BIFFLE, Secretary. (Whereupon, at 3:30 p. m. the subcommittee adjourned.) (Reports from the Bureau of the Budget and the General Accounting Office follow:) EXECUTIVE OFFICE OF THE PRESIDENT, Hon. WILLIAM L. DAWSON, Chairman, Committee on Expenditures, in the Executive Departments, House of Representatives, Washington 25, D. C. My DEAR Mr. CHAIRMAN: This is in response to your letters of April 16 and May 3, requesting the views of the Bureau of the Budget on H. R. 3683 and H. R. 3303, identical bills to establish a temporary National Commission on Intergovernmental Relations. H. R. 3683 and H. R. 3303 provide for the establishment of a commission which would submit to the Congress specific recommendations based upon a study of (1) the past and present relations between the national, State, and local governments, the allocation of functions and powers among the levels of government, and functions and powers exercised by two or more levels of government and the distribution of jurisdiction between them; and (2) the fiscal relations among the national, State, and local governments with a view of determining the possibilities, and the mechanism for achieving, on a continuous basis, consistency in the fiscal policies of the several levels of government. The commission would give particular attention to (a) intergovernmental tax immunities in terms of the problems they create for governments and taxpayers, and the means for resolving these problems; (b) revenue sources and means for reducing or eliminating intergovernmental tax competition; and (c) grants-in-aid, tax sharing, and other similar measures for adjusting financial resources to the needs of State and local governments. The commission would be authorized to hold hearings and appoint an executive secretary and other personnel. It would be required to submit a final report of its activities and the results of its studies to the Congress on or before the end of the second fiscal year which begins after date of enactment. mission would cease to exist after submission of its report. The com The bills establish a 12-member commission with four members appointed by the President of the United States, including two officers of the executive branch and two private citizens; four members appointed by the President of the Senate, including two members of the Senate and two private citizens; and four members appointed by the Speaker of the House of Representatives, including two members of the House and two private citizens. The provisions of these bills that define the duties of the Commission are the same as those that were incorporated into S. 3147 and H. R. 8843, Eighty-first Congress, after discussions among staff of the Senate Subcommittee on Intergovernmental Relations, staff of the Department of the Treasury, and staff of the Bureau of the Budget. We believe these provisions to be preferable to those appearing in H. R. 13, H. R. 41, and H. R. 391, Eighty-second Congress, upon which we gave you our comments in a letter dated April 5, 1951. We suggested in that letter the importance of delimiting the scope and responsibility of the Commission in such a manner as to confine its job within manageable proportions. H. R. 3683 and H. R. 3303, do not, however, contain a statutory instruction that the Commission specify in its report the types of action necessary to carry out its recommendations. We believe that the usefulness of the report would be increased if it were the responsibility of the Commission to suggest changes that might be required in Federal or State constitutions, proposed legislation to be enacted by the Congress and by the State and local bodies, and administrative action to be taken at each level. We have previously given you our view that, because of the broad problems with which the Commission would be concerned, it is essential for it to be familiar with the viewpoints of all interested groups, including labor, industry, agriculture, taxpayers' organizations, and the representatives of the several levels of Government. If the size of the Commission is to be comparatively small, as we believe it should be, the desirable representation of varying governmental, geographic, and economic interests might be secured by provision for an advisory panel made up of representatives of the various interested groups. As you know, the Bureau of the Budget has a continuing interest in the maintenance of good working relationships among the different levels of Government and has, over the years, participated in many activities and projects designed to improve intergovernmental relations. We shall be most pleased to give your committee, or any commission that the Congress might establish, whatever assistance is made possible by our experience in this field. Sincerely yours. F. J. LAWTON, Director. Hon. WILLIAM L. DAWSON, EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET Washington, D. C., April 5, 1951. House of Representatives, Washington 25, D. C. MY DEAR MR. DAWSON: This is in response to your two letters of March 6, requesting the views of the Bureau of the Budget on H. R. 41, a bill to provide for the establishment of a commission to investigate and make recommendations with respect to the distribution of governmental functions and sources of revenue within the framework of our Federal, State, and local systems of government, and on H. R. 13 and H. R. 391, bills to establish a National Commission on Intergovernmental Relations. H. R. 41 would provide for the creation of a 19-member temporary commission to study the advisability of redistributing governmental functions and sources of revenue among Federal, State, and local entities. The objectives of such study would be to (1) better secure the sovereignty of the several States with as much decentralization as is compatible with the national welfare; (2) maintain and strengthen the American type of democracy based on individual liberty and extensive citizen participation in and control of government; and (3) provide services necessary for the general welfare. The commission would be authorized to establish local advisory committees, hold hearings, and appoint needed personnel. The commission would report its findings and recommendations to the Congress on or before January 31, 1953, and it would go out of existence 90 days after the submission of its report. The 19 members of the commission would consist of the Secretary of the Treasury; the Chairman of the Federal Reserve Board; the Director of the Bureau of the Budget; 8 members to be appointed by the President pro tempore of the Senate, of which 4 would be from the Senate and 4 from among the Governors of the States; and 8 to be appointed by the Speaker of the House of Representatives, of which 4 would be from the House of Representatives and 4 from among the Governors of the States. H. R. 41 is very similar to H. R. 8714, Eighty-first Congress, on which I commented in a letter to you, dated July 7, 1950. H. R. 13 and H. R. 391, which are nearly identical bills covering a broader range of problems than H. R. 41, would provide for the creation of a 14-member National Commission on Intergovernmental Relations which would make studies in this field and develop recommendations to the President and the Congress with the objectives of: (1) The establishing of a more orderly and less competitive fiscal relationship between the levels of government: (2) the elimination of duplication and overlapping services, activities, and functions, and the securing of better intergovernmental coordination; (3) the attainment of an allocation of functions among levels of government that will provide economical administration and maximum service to the public; (4) a reduction in the total Government expenditures to the lowest possible level consistent with the efficient performance of essential services, activities, and functions; (5) the development, within the existing constitutional framework, of a governmental structure, and such cooperative policies and procedures as will tend to overcome existing obstacles to efficient governmental administration, and to lay a sound foundation for future development. Under H. R. 13 and H. R. 391, the membership of the Commission would be selected as follows: 10 members would be appointed by the President, of which 2 would be from the executive branch of the Government, 3 would be private citizens, 2 would be State officials, 2 would be municipal officials, and 1 would be a county official; 2 members would be appointed by the President of the Senate from the membership of the Senate; and 2 would be appointed by the Speaker of the House of Representatives from the membership of the House of Representatives. The Commission would be authorized to hold hearings and appoint a director of research and other needed personnel. The Commission would be required to submit a final report and recommendations to the President and the Congress not later than February 1, 1952, under H. R. 391 and not later than February 1, 1953, under H. R. 13. The Commission would cease to exist at the end of the fiscal year during which its report was made. These three bills, H. R. 13, H. R. 41, and H. R. 391 are similar to a group of bills introduced in the first session of the Eighty-first Congress, on which the Bureau of the Budget presented testimony in the joint hearings before the Subcommittee on Intergovernmental Relations of the House and Senate Committees on Expenditures in the Executive Departments on May 13, 1949. As the Bureau pointed out at that time, consideration should be given to the size and membership of a commission to study these problems. It may be possible to reconcile the need for a commission with a comparatively small membership and the need for representation of a variety of governmental, geographic and economic interests by establishing a small nonrepresentative commission which could be assigned by a larger advisory panel that would be selected on a representative basis. In view of the broad questions with which the commission would be concerned, it would be essential for it to consult with various groups not provided for in these bills. These would include labor, industry, agriculture, taxpayers' organizations, and other civic groups. Presumably these groups could be represented in an advisory panel, but it obviously would be impossible to represent all of them on the commission itself. The commission, therefore, might better be made up of a few eminent citizens, appointed from the public at large, with the appropriate task force and advisory bodies made up of representatives of the various groups interested in the many problems of intergovernmental relations. Another point made in the Bureau testimony on the earlier bills was the need for delimiting the scope and responsibility of a commission so as to confine its job within manageable proportions. Also, we suggested that there might well be identified certain specific studies meriting special attention within the general subject matter covered by the bills. These studies might include (1) an evaluation of the possibilities and the mechanisms for achieving on a continuous basis consistency in the fiscal policies of the several units of government; (2) a review of intergovernmental tax immunities in terms of the problems they create for governments and taxpayers, and the means for resolving these problems; (3) an examination of revenue sources and evaluation of proposals for reducing or eliminating intergovernmental tax competition; and (4) an appraisal of grants-in |