08-27-1986 Council Agenda - Laserfiche WebLink

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July 11, 1986, Vol. 61, No. 13 GOVERNMENT FINANCE OF ICERS ASSOCIATION FORMERLY MUNICIPAL FINANCE OF ICERS ASSOCIATION GENERAL REVENUE SHARING: GFOA MEMBERS CAN HELP MAKE IT HAPPEN; The chances for General Revenue Sharing (GRS) to continue past its September 30, 1986, expiration date still are alive, but the program's constituents, the 39,000 communities across the country whose budgets are helped by their GRS payments, need now more than ever to persuade Congress to keep the program going. FY 1987 budget resolution. Despite the fact that both the Senate and House budget resoluticns for fiscal year 1987, which begins October 1, contained an allocation for GRS ($1.8 billion for two quarters in the Senate version and $4.6 billion for a full year in the House's), the final FY 1987 budget resolution which emerged from the House - Senate conference and was adopted in both houses on June 26 did not carry a specific allocation for GRS. In an unusual procedure, however, the conferees included language in the resolution which assures that, even though there is no specific allocation for GRS, there° is still room for continuation of the program within the budget targets set by the resolution. But in order for the GRS program to continue, certain conditions must be met: (1) Congress must reauthorize the program; and (2) Funds for the program must be "deficit neutral," meaning that they must come from new revenue sources or from funds budgeted for other purposes. What this means, in effect, is that if Congress decides to retain the GRS program, it must reinstate the authority for it and it must find funding without breaching the budget targets. H.R. 1400. It now becomes imperative that H.R. 1400 be enacted. H.R. 1400 would reauthorize the General Revenue Sharing Program for three years, through 1989, at $4.6 billion annually. It would no longer be an entitlement program, but would become a program subject to the annual appropriations process. The bill was favorably reported by the House Government Operations Committee in late April by a vote of 28 to 10, after the committee rejected amendments to phase down the program, to alter the formula for allocations and to require local governments to trade categorical grant money for revenue sharing funds. Several reauthorization bills have been introduced in the Senate and referred to the Senate Finance Committee. No action has been taken by that committee. There are indications that H.R. 1400 will come to the Rouse floor for a vote in late July. Its passage would start the process of meeting the budget resolution's first condition -- reauthorization in order to receive funding. Grass -roots campaign. The member organizations of the National Coalition to Save General Revenue Sharing, of which GFOA is a member, have embarked on a major grass -roots effort to persuade members of the House of Representatives to pass H.R. 1400. For example, the H.S. Conference of Mayors, following adoption of a resolution calling for continuation of general revenue sharing at the $4.6 billion level, is calling on all its mayors to institute statewide campaigns mobilizing grass -roots support for the continuation of GRS. It is suggesting that the mayors pattern their campaigns after a "fair return" campaign initiated by Mayor Harold Washington of Chicago in which he traveled around Illinois stimulating communities to pass resolutions and organize citizens' petition drives to Congress. The National Association of Counties at its annual meeting later this month in Las Vegas will have a "war room" which will contain a telephone bank and computers to write letters to members of the House and Senate. GFOA members urged to join effort. A recent poll of House members indicates there are enough votes to pass H.R. 1400. However, telephone calla and letters are absolutely vital, to persuade uncommitted members, to let those in opposition know how important the program is back hone and to reinforce those who already support H.R. 1400. It is important, too, to urge mayors and other elected officials to join the campaign. GFOA's Federal Liaison Center in Washington (1750 K Street, N.W., Suite 200, Washington, DC 20006 (202/466 -2014) will be happy to provide information about individual repre- sentatives- -where and how to contact them, and where they stand on GRS. The Coalition to Save General Revenue Sharing also is ready to provide information and assistance. Contact Babette Penton, 1620 Eye Street, N.W., Washington, DC 20006 (202/223 - 3985). (continued on page 2)