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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 budget proposed
a first set of Performance Partnerships that give flexibility
to state and local governments on how to run a program. In exchange,
the government expects increased accountability for
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
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
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
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
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.