Part 8

I propose that the Congress make a $16 billion investment in renewing State and local government. Five billion dollars of this will be in new and unrestricted funds to be used as the States and localities see fit. The other $11 billion will be provided by allocating $1 billion of new funds and converting one-third of the money going to the present narrow-purpose aid programs into Federal revenue sharing funds for six broad purposes--for urban development, rural development, education, transportation, job training, and law enforcement--but with the States and localities making their own decisions on how it should be spent within each category.

For the next fiscal year, this would increase total Federal aid to the States and localities more than 25 percent over the present level.

The revenue sharing proposals I send to the Congress will include the safeguards against discrimination that accompany all other Federal funds allocated to the States. Neither the President nor the Congress nor the conscience of this Nation can permit money which comes from all the people to be used in a way which discriminates against some of the people.

The Federal Government will still have a large and vital role to play in achieving our national progress. Established functions that are clearly and essentially Federal in nature will still be performed by the Federal Government. New functions that need to be sponsored or performed by the Federal Government--such as those I have urged tonight in welfare and health--will be added to the Federal agenda. Whenever it makes the best sense for us to act as a whole nation, the Federal Government should and will lead the way. But where States or local governments can better do what needs to be done, let us see that they have the resources to do it there.

Under this plan, the Federal Government will provide the States and localities with more money and less interference--and by cutting down the interference the same amount of money will go a lot further.

Let us share our resources.

Let us share them to rescue the States and localities from the brink of financial crisis.

Let us share them to give homeowners and wage earners a chance to escape from ever-higher property taxes and sales taxes.

Let us share our resources for two other reasons as well.

The first of these reasons has to do with government itself, and the second has to do with each of us, with the individual.

Let's face it. Most Americans today are simply fed up with government at all levels. They will not--and they should not--continue to tolerate the gap between promise and performance in government.

The fact is that we have made the Federal Government so strong it grows muscle-bound and the States and localities so weak they approach impotence.

If we put more power in more places, we can make government more creative in more places. That way we multiply the number of people with the ability to make things happen--and we can open the way to a new burst of creative energy throughout America.

The final reason I urge this historic shift is much more personal, for each and for every one of us.

As everything seems to have grown bigger and more complex in America, as the forces that shape our lives seem to have grown more distant and more impersonal, a great feeling of frustration has crept across this land.

Whether it is the workingman who feels neglected, the black man who feels oppressed, or the mother concerned about her children, there has been a growing feeling that "Things are in the saddle, and ride mankind."

Millions of frustrated young Americans today are crying out--asking not what will government do for me, but what can I do, how can I contribute, how can I matter?

And so let us answer them. Let us say to them and let us say to all Americans, "We hear you. We will give you a chance. We are going to give you a new chance to have more to say about the decisions that affect your future--a chance to participate in government--because we are going to provide more centers of power where what you do can make a difference that you can see and feel in your own life and the life of your whole community."

The further away government is from people, the stronger government becomes and the weaker people become. And a nation with a strong government and a weak people is an empty shell.

I reject the patronizing idea that government in Washington, D.C., is inevitably more wise, more honest, and more efficient than government at the local or State level. The honesty and efficiency of government depends on people. Government at all levels has good people and bad people. And the way to get more good people into government is to give them more opportunity to do good things.

The idea that a bureaucratic elite in Washington knows best what is best for people everywhere and that you cannot trust local governments is really a contention that you cannot trust people to govern themselves. This notion is completely foreign to the American experience. Local government is the government closest to the people, it is most responsive to the individual person. It is people's government in a far more intimate way than the Government in Washington can ever be.

People came to America because they wanted to determine their own future rather than to live in a country where others determined their future for them.

What this change means is that once again in America we are placing our trust in people.

I have faith in people. I trust the judgment of people. Let us give the people of America a chance, a bigger voice in deciding for themselves those questions that so greatly affect their lives.

The sixth great goal is a complete reform of the Federal Government itself.

Based on a long and intensive study with the aid of the best advice obtainable, I have concluded that a sweeping reorganization of the executive branch is needed if the Government is to keep up with the times and with the needs of the people.

I propose, therefore, that we reduce the present 12 Cabinet Departments to eight.

I propose that the Departments of State, Treasury, Defense, and Justice remain, but that all the other departments be consolidated into four: Human Resources, Community Development, Natural Resources, and Economic Development.