Sunday Forum; Federal Anti-Poverty Hearings

I find it's only one of many voices that are going to be heard by the day and one I would like to build with the committee's permission is probably to sit here at the table and read a brief statement expressing the concerns of the city and my own personal experience as the mayor of the city with a number of these agencies that are in serious jeopardy today but who have over the past two years in the city contributed greatly to its help for my county and live a building so I might with the Chairman I'd like to read a statement that I know I will be succeeded by people that don't speak out as qualified legal more skilled than myself. For each of these concerns. That we expressed today. I'll try and be as brief as possible Mr. Chairman thank you. It's a jam when a new nation began in the womb of this city and we had a day to return to the promise and the dignity of that new nation. But two hundred years ago concerned and angry citizens met in this very historic hall as we do today. They met to present legitimate grievances and to seek redress against inhumane actions of

their government. They appeal to a distant power and their protest at that time was unheard. As a consequence a new nation was formed. Two hundred years later as we approach the celebration of that young nation's bicentennial we are gathered once again jointly in protest. In protest against the unilateral decisions of a distant administration. And Administration which is interpreted electoral victory as an immunity from Congress and as a mandate to disregard the statutory and model commitments. To meeting just the basic needs of the pull working class men women and children. Of this nation. The president has at the outset of this year as you so well know laid bare the plans for what he call a new American Revolution. New federalism. His management call the program and it is wrapped in the rhetoric of returning power to people. Well let me examine briefly for you this morning. The president's rhetoric and the realities of our own

experience in the city. A B C D which is our character agency has been making the rhetoric of returning power to the people and ongoing reality in this city for almost a decade. But the president's budget in this year means that community participation and local initiatives in decision making. In this affective agency will be discouraged dismantled. And eventually it will be eliminated and not only I might add Mr. Chairman in Boston but in Gary in Baltimore in St. Louis and even from the city from which you come. Washington D.C.. As I stated in testimony submitted in federal court to fight the illegal actions of Ojo. ABC the scheme of Community Planning at the neighborhood level is unique in Boston. And has contributed in measurable ways to the strength and dedication of a particular neighborhood in the city. The 11 a pack have in addition to plan. And carrying out the components of the ABC TV program. Have in fact become catalyst for

Community Action to meet community needs. As mayor I have also found that effective response on the part of a neighborhood is facilitated by. And often entirely made possible in the first instance by the existence of a recognized respected community committee with which to negotiate. A path to provided this kind of credible leadership in the 11 neighborhoods in which they have served in the city of Boston. In a my opinion the proposed funding cutbacks will destroy this institutional leadership that is Whitall to the life of this city. In short Mr. Chairman. Boston's a b c d d a PAC. The model city programs have during their entire existence returned the power to the people in the city and more importantly they have given hope where there was despair and real opportunity where there was once not even a possibility of change. The president said that many of our great society programs programs like ABC and model cities

manpower training and housing rehabilitation have been ineffective. He stated that they have had too much bureaucracy and too little delivery. I challenge the president's assumptions 80 percent of the contract dollars for Boston's model cities have returned directly to the neighborhood and 80 percent I might add as a national high. Eight point nine or maybe DC's funding goes to administrative costs and that is a national lot in the past 10 years we've used housing subsidies which Congress has provided generously forest to build ten thousand new units for low and middle income people. And we need 20000 more new units in the city over the next 10 years. Eight hundred unemployed in a city residence and I might add be at that who we have hired under the pet program of giving us the resources to supplement our local efforts and Head Start teacher aid consumer investigators youth workers and drug counseling

locally elected a PACS provide highly accessible service delivery network for twenty eight thousand neighborhood residents in the city. Collateral legal assistance is desperately needed and has been given in Boston and in conjunction with across the river. And I thought the neighborhood employment centers which are located in areas of highest unemployment 26000 neighborhood residents are Boston model cities funded life centers provide comprehensive health services to the same number of residents within the city. The list of a compass that litany of community building of scandal free administration of official service delivery goes on and on. And when the president says that we have to reassess the effect of our social programs. I agree. But he should come to Boston as you have. He he will find mothers who agree to work because a locally funded daycare center he will find a working

class stevedore. Living next to a young doctor in Charlestown because a federally subsidized subsidized rehab loan. He'll find an alienated school high school dropout. Finding some hope an opportunity in manpower training program. Model City and cap agencies are programs which were created to build a new process for Community participation in local decision making a concerted infusion of funding to show how one neighborhood and a city wide coalition could mobilize for their own and that's the key word there own rebuilding. The programs have been a success in Boston. And that's not an expression of local pride. It's a fact. The city as a whole has benefited from the progress which these programs have begun in which they have achieved. The president has also told us this year that we must ask what we can do for ourselves. Mr. Chairman the local property tax in Boston is now

one hundred ninety six dollars per thousand of assessed valuation. No city in the country not one. Has greater reliance on this regressive tax base than the city of Boston. Fifty four percent of our land is tax free and we are unable to charge one of a million of commuters. For service that we provide for them in this city daily. Two months ago before you arrived in the city I announced an austerity program which cut the city budget to the bone and eliminated over sixteen hundred jobs from the payroll. It is a program that goes about as far as a city can. To put its own house in order. And I think that a tax rate of one hundred ninety six is about as high as a sitting go to tax our own people. So when the president says that we must first ask what we can do for ourselves the residents of Boston the home the rent payers can rightly say what more. Can we do for ourselves as a people

and as a city. We can say that it was just a little more that we can do and there is little more that we can give. As a city Boston today since the federal government more than two billion dollars every year in taxes. And we get back only two hundred million. That's about 10 cents on every tax dollar. But next year the president's budget will slash the federal commitment in funding to Boston by at least one hundred million dollars. So there are direct returns and that's what counts the direct return of the people of this city will be cut in essence from about a dime to a nickel. At the same time the president talks of self-reliance. He in essence continues to drain from us the very sources and resources that we need to survive. He is confiscating more and he is returning less. Mr. Chairman. The president's new petrol ism emerges in my opinion with deference

and not exaggeration is a shell game for the people of Boston and for every city across this nation. But the procedural changes and the budgetary cuts which bring us here today and not the significant or most significant problem that we face. The overall message with the president's new federalism is meant to convey. Is a great deal more disturbing. In a larger sense the president's budget represents an intangible psychological setback to the progress of our city and the hopes of our people. The indirect consequences to our economic prosperity to us social progress to our neighborhood revitalization to our racial understanding can't be measured in terms of dollars of programs. As mayor I know only too well of the central cities of this nation whether it's Newark go Cleveland and Detroit must be counted over the last decade as their own Vietnam.

And yet now that the involvement in the war in Southeast Asia was over and has ended and as the president begins plans for reconstructing North Vietnam the rebuilding of urban America will have to wait. We are told. Well in 1949 Congress declared quote decent safe and sanitary housing was the right of every American. But now the president has declared a moratorium on that committee. In 1964 Congress again declared a War on Poverty and now we are told that that war is over. The other cease fire is here at home. How long things remain quiet on the front. And how long the dreams can be deferred. It's still a matter of speculation. We do know that legitimate needs remain unmet. And that human expectations in this city and cities like it will never die. Thank you Mr. Jim.

Kevin I. Just and I think the response of the audience indicates that in with your words that you have expressed or considered certainly that many are very pleased to have in your very excellent testimony which you've presented to this committee in the issues that you have Raines. And members of the medical device of the first questions of the honorable. Moeckli whose district in which we live. John do you ever like the other side. I was down there watching it with the group meeting with the massive

delegates and the problem with what I have. Missed my comic would you like to comment at this point. Mr. Mathers only one question that I would like to. Ask. Connection with us. Certainly I think they can complete itself. But with respect to the. Public employment program to which the program under the emergency employment act. There has been testimony before this committee that. There is approximately a billion dollars in this fund at the present time that has literally with drawn withheld from the purpose which it was

originally appropriated by Congress. That is the employment the unemployed and public employment. Two days ago the president indicated that a large amount of this money will be used for the summer youth program. That local officials will have a choice whether to. Use it for the employment of the unemployed or who may be heads of families on what the youth who will be out of school this summer and. Need jobs a program which has officially been terminated. What is your opinion on this manner of handling these two very difficult problems. I think the response of the president is typical of the response that we've been receiving from the executive branch for the past or at least did two months. Mr. Chairman but the president is giving us as your question suggests is alternatives as to whether we provide the unemployed or the U.

Why were given that option why we don't provide both is a question and I don't have an answer to when the president my opinion sure should the president hasn't pounded. We could provide both for the unemployed. That's those who are economically without a subsistence. That includes the Vietnam veteran who is returning home and that includes the you who desperately need some kind of funding and is willing to provide work as a consequence for that money. During the summer months in many cases the subsidized not only maybe his own education but collaterally monies that are needed within probably his own home for subsistence. So what I'm saying to you is simply this that the what the president is saying and regarded in regards to have to have a pet program he said in regards to revenue sharing. He's giving us at this level a right to make the decision but not sufficient enough money to provide for the needs that we're faced with as a consequence. Groups like ABC

D model cities and others are fighting over a bare bones budget. Now the president suggests in the summer months the unemployed and the youth fight against each other for what little money is available. My answer do is simply this that we should provide for both. If the president will not give sufficient funds for both then I'm going to have to make a decision and try to provide a minimal amount of money for each group. And I would not play one off against the other and say will only give the unemployed and not to the you will only give the youth and not the unemployed. Given the decision I'll try with meager funds are given to me to provide for the neediest in both categories. Thank you and I understand you've been a candidate for this hearing by Mr Milton co-president action for Boston Community Development Minister Robert Ford President masters of Community Action Program Directors Association and executive director of action for community

development. Those gentleman still at the table please rise. Have you or do you care to supplement the statement. Quite like a. Mystical record. As Chairman members of the committee Your Eminence carno with Mayor White Ladies and gentleman my name is Milton he called and I am president of actual Boston Community Development Incorporated anti-poverty agency for the city of Boston. This is my second job so to speak and I'm a volunteer at the job. I'm director of the Browning Youth Community Center is my pager.

My wife and I have a children and I have lived in a brown housing project in Jamaica Plain for 13 years and I know what the projects were like for your monies were available. I don't want to make a plane was like I know how the elderly and the kids existed before you or your monies came into our neighborhood. Mr. German I don't want to see things go back to those conditions. Now the disadvantages have a say in the programs that are run in their neighborhoods. And the disadvantaged have the courage to come to meetings like this to speak out what we need and believe in. And now today people like you are like the professionals in the business people who have come here today with us. Please listen. What we're saying. ABC was organized 962 several years before there was

an ileo and as a private resource agency with 2 million dollar grant from the Ford Foundation in 1964 it was designated as the official any poverty agency by Mayor John have columns. And in 1964 it would read that is designated by merit white and the city council in accordance with the green amendments of the Act Economic Opportunity Act. Although we have central operations at A B C D mainly there are 11 neighborhood centers known as a pax. And it's neighborhood employment centers and skilled training centers in the nine years we have been running as the Community Action Agency we have been providing a variety of health education and social services to about 15000 people a year and employment and training to about thirty six hundred people a year. I ask you where have we been found wanting. The programs have been

successful. We've been evaluated. We've heard about studies of community action agencies but we haven't seen them. Who's going to pick up the bird or giving money to citizens stays on the revenue sharing isn't going to do the job. Some maybe but not where anywhere near what's being done by us. The business and industries can help and will help. But the well-being of the disadvantaged isn't their first concern. And as it has been hours at ABC the elderly the kids the sick the hungry the unemployed both the addicts. And the UN educated our people. What in God's name is going to become of them. Our programs are being demolished. The people whom we have given hope an opportunity and a voice will have less hope less opportunity but the voice which has been found through community action will not be stilled. 1965 I was a

member of the ad hoc committee would set up the Jamaica Plain a PAC. I was elected the first president of that board. I've been chairman of that a PAC and I've been an ABC board member. I've devoted eight years to creating programs providing leadership. And there are hundreds of thousands of community folk like me in this city who are waiting for Samantha. Community action agencies have been our Moses. They've been leading us out of the darkness of ignorance not being able to fight the kinds of problems that keep us down to keep us in the darkness. And I'm Moses being struck out from that high peak created by the signing of the oh you'll be over two years. Just a month before election. Some of those of us

who may be in front. Might make it through the waters before they close and drown drown us with a lot of people. Who are way back in the pack. We're going to be drownded and left. Back in the darkness not being able to pull themselves apart by their so-called bootstraps. And they don't have any boots. I think. These hearings I hope. Will have some effect. In the changing decision in keeping these programs operating. Thank you Mr. Gold Mr. Chairman I had to. Well I mean I hope that what. Happens. In 30 below the committee would like I would not like. When it was time that he has a very tight schedule

distinguished and just the religious community of this writing and someone who will be tired when you service in the community who are in the needy heart of our city we certainly welcome caught in the murderous to Camaron we are truly on of having them in a war that maybe there are. THANK YOU THANK YOU may have been the right Congressman Harkins name is of the canary. I wish to join Mayor White and the citizens of Boston. And Massachusetts in Vulcan in you to this is Tarik city that cherishes the traditions of justice and liberty which permeate the history of that country. I want to assure you of my blessings and that your

hearings and deliberations throughout this land. I am appearing before you today to express my personal concern over the impact that the man playing the major portion of the program sponsored by the artist so they can amateur opportunity will have and thousands of low income people in Boston and throughout this commonwealth. I do not pretend to be an expert on the technical and statistical details of the hallway or programs that are being cut down. Others the hearing today will provide that information. I do not come here today as a Democrat or as a Republican or as a critic of the action taken or omitted by the administration or Congress. Like all

government agencies all we all must be accountable to a higher governmental authority. It would be foolish to suggest that its programs have been an unqualified success. Or could be a mere only criticism. What I want to do today is to speak as a baby who has a pastoral responsibility and the personal concern for the poor of all the nominations races culture and background. I know from personal experiences both the difficulties of being poor and the a nake desire every man who is poor to raise himself and his family above that Parvathi that impedes his

development as a citizen and as a human being in this land of opportunity. Poverty is complex. And the steps we must take to eradicate both the bars and the sad and just unwanted and oppressors poverty would seem to be equally complex. The history of our own country and of modern society gives ample evidence that attempts to deal with the problems of the poor as if there were any inherent connection between poverty and immorality have not only not produce the desired result but in most instances have wrought terrible injustice is upon those they were designed to help.

I am this. You know observing the current scene. The undercurrent of this content and even animosity towards the more deprived brothers and sisters arising no doubt at least in part. From the astronomical costs involved in public programs to assist the poor. Although I am painfully aware. From my own experience in attempting to provide fiscal support for the human service programs in the Archdiocese of Boston of the high cost of such efforts. I nevertheless must state and statically that we cannot allow cars or even the occasional misuse of public generosity due to terrorists from fulfilling our moral and civil obligations. What has

impressed me about the Ojo programs has been the wide range of services and opportunities available to the participants. And most of all on. The principle of the involvement of the poor. In the solution of their own problems that has characterized the Community Action Program. It saddens me to learn that so many of these programs are being ended after so many people have invested themselves their energy and their hopes in the design and operation of the program. In Boston alone for example I am told that three hundred fifty people most of them low income person without compensation under local a pat board.

Eight of the 11 neighborhood boards in the city would cease to function within months. Many of the employees of the local program Center. Boss and community development were once welfare recipients. They face the loss of their jobs within six months and the prospect of a return to welfare or unemployment compensation. Think of the damage that will do to the human spirit and the morale of these people and their families. Fifty four thousand people who annually buy only open programs will be deprived of services. These include elderly people who are being given hot meals medical transportation companionship consume aid and other simple but vital services in East Boston charged down and

other neighborhood. Young people engine a complaint Brighton and elsewhere involved in drug abuse prevention programs. More than 5000 new is employed by the citywide neighborhood youth. And some 20000 unemployed people being lost for counseling placement and follow up services in neighborhood employment centers. These are just a few of the programs and they read only the impact on Boston. Similar programs in other cities throughout the archdiocese will suffer to Homeworld these people turn our economy it seems is in poor shape. Unemployment in some low income areas is as high as 28 percent. Many will turn to the

churches and social agencies. We try our best parish St. Vincent de Paul conferences our schools Catholic Charities family counseling our planning office for Urban Affairs to be of assistance but we cannot begin to meet the needs without the core relative efforts of our federal government. Many of our priests sisters and lay people as volunteer members of the local boards in progress and along with the loving Representatives. This has been a healthy three way partnership among government private institutions and private citizens. I. Hate to see it end. I pray that it will continue.

Members of the committee I respectfully urge you to do all in your power. To convey to the Congress and to the administration. The importance of continuing the program and to provide these services to the poor and to ensure their participation in the design and delivery of Start programs. The hour is late. The problems are burdensome. But I am confident that Americans of goodwill courage and compassion. Will not turn their backs on those fellow citizens who so desperately need their understanding and support. Thank you for listening to me. I sometimes come down on the

terrace I was on a statement with you given to this committee in deference to your time and that life has been questioning but expressed a very confidence and leadership that we have seen in this hearing this morning. Thank you very very much and with each and thank you. Next year with this. Thank you. I would also prior to. Making my own remarks like to provide the committee with the statement made by our own Majority Leader Thomas and Neil who is unable to be present this morning but who has obvious interest in the long time he has served in the Congress is vigorous and benefit cation with the challenge

presented to the Congress in this immediate session as majority leader I think testified it was interest and concern. I agreed this morning that there's a pot of my own testimony that I would request the committee to undertake to make a part of the record congressman on here that I made a part of the record. If I could I'd like to depart from any prepared text Mr Salmon and give you the benefit of something that I have done in my congressional district which I think has been the source of interest to members of the Congress and to other interested parties who feel that there is a challenge to the existence not only of the programs immediately of concern but to the philosophy that has been a central one in this government's last 40 years of existence. My concern in attempting to address myself to the magnitude of a budget which totals something around 200 68 or 69 billions of dollars worth to try to make that figure. Comprehensible to people and to make the changes that are substantial in nature both in

dollar and in direction also comprehensible Accordingly we tried I think perhaps for the first time in the country that we knew of to what that portion of the budget which was affecting people directly out on a congressional district basis and approximately one month ago in the city of land which is the largest and most affected city in my congressional district we had a hearing which is somewhat of the one you're conducting this morning but focused entirely on the congressional district and the impact of the budget. And we attempted not only to elicit from people who were the. I don't know as of services and the recipients of services who know better than I the value of the programs that are affected by. The 1974 Nixon budget. But to try to recognize as a member of the Congress the. General effect of mis of our ability to influence public opinion as contrasted with the executive branch and to deal with that very subtle but real problem which I suggest is at the core of my concern and this fiscal year

to convince people this is not a fight only for the poor for the nonwhite. For those who live in cities but affects those who like to consider themselves part of what is again the American ethic mobile middle and upper middle class in general of the impression that they have been able to shed the vestiges of dependency on government and make it absolutely clear that in addition to the programs that were often talked about that there were other areas of concern which should be of immediate concern to this kind of person. I think we had limited success in doing it but we are attempting on the basis of that experience to defer that into the way I intend it with Congressman Boland of the Second Congressional District to conduct hearings in Springfield this afternoon. Along the same lines and have both the interest and enthusiasm on the part of Congressman Moakley in doing the same thing directed his congressional district in Boston and hope to do the same thing throughout the state on the basis that we all understand as members of Congress the base's call survival and to begin to document by

congressional district their record which we will have to defend those incumbents if we choose to seek re-election. The effect of the impact of the Nixon budget on programs of the kind but of concern to you. I hope that out of this and out of tomorrow's session that there will come not only an awareness of the the numbers that are involved which have been provided you by people who are directly in the programs but an awareness of the longer term significance of allowing government to turn away from a commitment of the kind that I think has been one of the unique characteristics of our experiment in that area. And I hope also we can have some appreciation for the really real problem we have and communicating as an institution. With people who are dependent to a great degree on the executive for their information and tend to believe it rather than us when it comes to the reason for these things I would hope that the committee might address itself and one of my last remarks to the very real problem again of. Who makes up an audience of the kind that we have here today. I would like to

believe that they aren't just the people who have the middle and upper middle and the not directly related types. My experience unfortunately leads me to believe that we have not yet begun the trade of the American conscience to the point that we do have halls filled with people our audience is available to us who are made up of other than those who are in these programs and committed to them day today. I hope that somehow in the course of your travels in the country if you continue this you will begin to wrestle with the question of not just reinforcing from my point of view to you a legitimate concern about these programs and reinforcing knowledge which those of the providers of these programs have but deal with that problem of wrestling with the conscious of that part of America which does not consider itself affected by this budget. If we don't do this we will have failed I think in the basic challenge presented by the thrust of this budget this year and other than the momentary consolation of having tried to do something in some fashion which we consider to be good I think probably wasted a great deal of time and effort. But for the the chance to come this morning and for your own initiative

in taking on these hearings and reinforcing the kind of concerns that I know you have I expressed my appreciation of Congressman O'Neill's and I'm delighted to come and offer what the committee my own experience in my own district in dealing with the same problem. Thank you. Thank you Mr.. All of the statements referred to will be in the record at this point including that Mr. O'Neill. I want to express our appreciation I want to assure you that we will be. Greatly benefited I think by cooperating in some way the findings of the hearings that you've been holding and will be holding I understand. In this area. Certainly it seems to me that there might be some manner in which we could collaborate 0 2 0 could relate to one set of hearings with that

of the other. And I said offer to you that the opportunity to. Use of the cities of this committee to the extent that we can be of help to you. The information by congressional district basis. I think it has provided enough interest in Washington to have a meeting involving about 85 separate staffs on the question of how they might do the same thing and I. Hope that out of your own experience you might make similar suggestions to leadership that we undertake to try to get it documented by congressional district would you know and I know is the basis to which many of us most strongly react when it comes to looking at 974 and the problems attendant to survival. But I think that's something that I hope we can keep in mind. Thank you Mr Mobley. Thank you Mr. Chairman. I certainly want to commend my colleagues for the most comprehensive statement like to ask you if you

might comment on the statement it was made by Mr. Howard Philips director of Ojo and certainly we're aware that you already have more now we have a given person and that I'm certain that you would know more about Mr. Phillips than any of us up here. Mr. Fullaway as events I want to assure the committee that my current physical appearance has nothing to do whatever the present administration of all we owe other Wyeth members are there. Mr. Phillips has been extensively quoted in the press as saying that the concept which created the Office of Economic Opportunity was a Marxist concept and in view of the fact that he hasn't taken this approach you know nobody else in government has taken this approach about veterans as they relate to the Veterans Administration or farmers as they

relate to the Agricultural Department of Labor to the Labor Department. Would you comment for this committee what your reaction is to Mr. Phillips when he says that setting the poor side as a class into themselves as a Marxist concept. It is very had as you pointed out in your opening to maintain detachment and commenting on the deliberate. Choice of language of that kind particularly in view of my own experience. My guess would be that it is prompted by a. Well thought out effort something that I envy momentarily from the point of view of the apparent congressional inability to plan with any kind of cancer at the kind of multi-faceted challenge which has been presented to the Congress by this administration's attacks in so many areas planned with that. Kind of an end result in mind attempting to play on the materialist

perhaps the controversy ality of some aspects of the poverty programs play on the feeling on the part of some people that the poverty programs are wasteful that they are not directed to the solution of problems that reinforce the cause with the president's own message you have which I think occurred in one of those frequencies out of the morning broadcast right after the Philips tape and you allude to but I think that a lot of it has been general without attempting to attach too much design to something been part of a well orchestrated effort to. Attack a number of these programs and to find a way to isolate their support is in the normal sense of the word from any willingness to really do battle and then a fibroid closely by the the choice of language which to me is curiously dated today. In view of the administration foreign policy initiatives of the last few years and in view of I thought the increasing majority of this country and adjusting to the realities in the world but it may very well be just a momentary lapse when it comes to reversion to that kind of rhetoric. I would say in general and I think your own committee exchange that I had the occasion to

read with the Philips the it illustrates that you have a very determined and very purposeful forceful and very capable individual on your hands when it comes to making sure that the directive or the mandate he has is furthered. I hope that we as members of Congress concerned about this week will be meeting that challenge. Thank you. This is my comic and I hope that you will point to ask a question you have that is not swearing in this morning. One of the active members of this committee because we are so honored to have you that that we respect the views that you have given to this committee so feel free to interrupt at any point. Like I've been doing

nothing in the guts of it develop back. What concerns me is what level of action. Well I think the concern is most legitimate and has been reacted to of course by separate initiatives one in the Senate by Senator Evan and of course the House leadership in entirety joined by chairman Mahan of appropriations that the speaker as you know have developed legislation of their own and I think is going to commence hearings on Tuesday of next week on the employment legislation. What I'm concerned about and I'm sure it's at the root of your own concern is the extension of a concept which has been a battle over between branches for almost two centuries to the point where entire programs whatever they

may be as far as their direction and now the subject of impoundment and by the the blatancy of the definition on the part of the the president himself at news conferences in an effort made to have it appear that this is not only something that is justified but entirely lawful as he assesses his constitutional right to do it. Something that I find myself and I'm sure you join me in finding no basis for and the great concern for is that the facts the erosion of the effort balance between branches. I've had a little experience with it and I think I'm concerned as. Usual. In fact just what you've never happened or that I. Think that should be developed.

I have also had experience in the Democratic Congresses before. I was a leader and even worse than the majority leader of the Senate. And. We got along pretty well with them and you get along with us because. There was no. Intimidation of me this matter. I remember when he said that the recommendation was the minimum wage and 75 cents and 80 cents. We accommodate them by making that it. Seems to me that. As I say this that the

Democratic leadership are responsible. For. The mosque. We all approve of it. Patience. I might pick up a telephone or telephone a couple. The Capitol with Democratic leaders. Recognizing that this is both of the good. Aspects of the speaker. This whole episode now runs very visible since

the last six or seven months might in an unintended fashion come recognition on the part of the basic imbalance of this kind of effort it has grated on the president as it affects his relations with the Congress. If that happens it may be one of the better things in the long term of the Congress and the people of this country to have that education as trying as it may be in a momentary sense to deal with these various assaults we call them executive privilege or a variety of other uses with total and temper for the nominee of the branches. And it may take that kind of shaking up that kind of to get something finally going public attitude with our own brands to begin to try to redress that balance. If you're concerned and I share your feeling that the leadership is responsible and cooperative and willing to work with an eye to the country's interest and they demonstrate that right. The next witness is

Mr. Lawrence Sullivan. Thanks very much Fraser of the Greater Boston Labor Council. Mr. Kennedy I was regional chairman of the National Association of people. Gentlemen we welcome you. We hope that testimony with your mouth will be sure you will be in the record at this point and we may proceed to summarize or deal with it. Mr Sullivan I recognize you as the first. I want to thank the committee invite me to represent of organized labor in the greater Boston area

because as you are aware labor is concerned about Ollie's programs one of the reasons being that we were one of the moving bodies originally and initiating these programs. So I come before you today to express again our concern about what is happening to these programs and more importantly what is happening to the people. These programs were set up to Boston is unique in one way we have probably the highest unemployment in the country in the section. And when someone said about the winter of discontent I think everyone here into Boston is what. We have. Most of the problems.

And Eric thanks you waited by the fact that we have a very very economic back to try this out. And the reason of our concern is you gentleman know in Congress that the effervescent CIO at the outset did not support revenue sharing per se because they recognized that it was a poor substitute. Their fear is have now become reality. I know that at the you the cities are denied access to a lot of things they were going to do is that we don't want to do. We. Might think that we're dealing with human problems. We have human beings trying to solve them. And one of the necessary things are these programs so their poor labor in Boston and nationally deployed is when the cuts we have with us are Paul parks.

Who I'd like to introduce as the former chairman of the Education Committee of the end of a lazy AP A Boston when I used to be president but really I believe I should introduce him today as the director of the model cities program for Boston and he will be giving some testimony to back up some of the things that I say during these hearings you will hear the testimony from many able and competent people. On the subject of the reduction of federal support for domestic programs. I shall limit my testimony therefore to the area where I feel most competent in. And that is the cut back effect on the economy of the Commonwealth of Massachusetts in general and I should say on the economy of our nation in particular. I submit to you an enclosure which details and which Mr Porat will speak of in detail. The loss of jobs and dollars to the burthen community at will because by the elimination of burthens community action programs the mayor

figures taken alone cannot impart to you the impact of their effect. On the most powerless like power less segment of our community. The poor people all signs in the Cape that up to 50 percent of these this charge people will happen go on general welfare. And I have yet to digest a little bit I have a little bit of experience. Parmalee been one of the overseers of the welfare program for the city of Boston so I'm very familiar with the real issues and welfare. Our leaders in Washington have said these community programs have been inefficient. As a businessman. And a train engineer. I must agree that there is an element of truth in this. If we use the questionable standards of cost efficiency when I question the standards that are used to evaluate a peoples program. Since those of us old enough remember. That dictator but you know Mussolini

claim to fame was that he reigned in official government and had the trains running on time. History will show that a government's responsibility is measured more by its effectiveness rather then its the fish and sea and I think that probably in our administration today that we have substituted a fish NZ for effectiveness. I think that this is a great mistake. I'd like to digress just for a minute and state that here in this auditorium. Back in 1967 I happened to be sitting in the position that you're sitting in and we were having hearings in regard to the riots that started because of a death. Direction of the people before the welfare office in the Blue Hill section the Metapad section of Boston and I was sitting in your seats listening to testimony. Of the people. Who were talking about their grievances and at that time we did have some semblance of an apparatus which was a b c d. Oh I see.

And some of the other domestic government funded programs that these people could turn to. And I beg upon you to remember that the grievances are still there. And when we put away the apparatus that we've set up to deal with these problems we better make sure that we have an alternative apparatus to deal with the problem that people have an honest deal here. I urge this committee to carefully think out the effects of arbitrary cuts and elimination of domestic programs on the people and the economy of America. I'd like to take and delineate at this point what will be the economic impact on that area which we call the model cities area which both ABC the poverty program and model cities are trying to have an impact on by a variety of indicators Bostons Bottle City area and contiguous areas have serious economic problems. For example the unemployment rate in the model city is there at the present time is twenty

three point seven percent approx three four times the PI point seven percent rate in the Boston as the MSA. The phrases in terminations which have been proposed in various federal grant programs would have of the peer impact on this already economically depressed area. If the model city program ends and if A B C D suffers the cuts which have been projected in the form of the elimination of all your local initiative funding end of summer youth employment program. The Model City area was suffering substantial reduction in its employment base. The housing freeze is already in effect will also have serious consequences for the area. More specifically the project the results of these freezes and terminations of the next year will be as follows. In the amount of jobs written in the model cities program permanent jobs one hundred eighty eight contracted agencies 500 summer jobs one hundred fifty. The total model citizen jobs would be threatened is one thousand one hundred thirty eight. In A B C D permanent jobs that these are just

people who live in the area and maybe see the permanent jobs three hundred fifty five estimated summer job summer jobs the estimated model city share of summer jobs is twenty five hundred. So it means we're losing 20 855 a 2008 out of 55 summer jobs for youth. Who live in the area. And in terms of housing the construction jobs lost and local community construction workers there's a total as we figure out about seven hundred and thirty five local construction jobs that are will be lost as a result of the cutbacks in the freezes and the total jobs threatened by the area will be somewhere about 1700 28. The monetary losses had due to model cities NABC in total annual salaries represented by threatened jobs. Most of these broken permanent jobs by a million nine hundred and thirty eight thousand six hundred in. Dallas summer jobs two hundred and

thirty three thousand five hundred sixty seven. Therefore the total monetary loss of most of these jobs will be six million one hundred sixty eight thousand one hundred seventy six in A B C D from the area gain permanent jobs lost. The cost of that is two million seven hundred two dollars and two million two hundred seventy seven in 2004 and eight sorry summer jobs. One million two hundred fifty thousand totally BCV jobs lost in terms of dollar loss to the community is three million one hundred fifty two thousand four hundred eight dollars. So when we talk about partial housing salary the construction trades we add another eight million one hundred thirty six thousand dollars or the total salary is ABC plus the housing construction workers means that totals income loss to that community of 18 million two hundred fifty six thousand five hundred eighty four dollars. Or a total monetary loss salary plus other

components. Twenty million four hundred sixty four thousand one hundred. Now that says there. Birth almost fire powers in jobs in over 20 million dollars would be lost as a result of the terminations of other cities and cuts in A B C D and housing freezes the ultimate effect of the monetary loss is even greater then is directly evident if one takes into account the multiplier effect that effect as follows. Every $1 spent generates 2050 since that is passes through the economy. Thus the loss of 20 million four hundred sixty four thousand one hundred dollars. The total monetary loss listed above in connection with model citizen ABC would have the effect upon the economy of our area of fifty one million six hundred twelve thousand five hundred dollars and in a community that already played on its back. To lose that much money in this economy would be more than a loss it would be a tragedy to the community. With all due respect to the president and the present administration

I have to differ with them when they say there is no more urban crisis. We are here in the community and we know that what the limited domestic programs have done for the people of the community is that it has given them an opportunity to enter into the system. And I believe that if you look at the record of the individual people that have come off of the welfare rolls that have moved into the business sector of our community and have moved by are such agencies as oh I see A B C D and model cities. We will begin to recognize that we have a standard is a there are a mechanism to pull people into the system and that's where the president my I do agree that I think we have a good system here in America. It's a capitalistic system I'm a part of it and I'm proud to be part of it. But I think that one of its greatest failures is the fact that it does not give all of the people an opportunity to learn about the capitalistic system

so that they could make a judgment as to whether or not they like it. We should have learnt from the tragic mistake that we made in Asia in which we tried to implant democracy upon a people that did not have the background for a democratically run country. And we see that we have spent untold billions of dollars in Southeast Asia and we still have not implanted democracy on that nation. So therefore I say that there is no question about it we have some in officials these in our domestic programs. But before we try to eat eliminate domestic programs by eating we must have an alternative solution to what I'd like to just state one additional thing. I mentioned to you that I am a vice president of the Greater Boston Chamber of Commerce. I am not officially speaking for them. I told them that I would take this thing today because somebody has to say it and I don't intend to be a token black on the Chamber of Commerce. We had a debate yesterday in regard

to whether or not the Greater Boston Chamber of Commerce would become the prime contractor for an auto mechanic training program for oh I see on the National Alliance the businessmen. We spent over a half an hour debating and actually ducking the issue. And when it came down to it the question was well we're not equipped to do the job. My attitude is if we're not equipped in the private sector to do the job publicly state it and let the public sector go ahead and do the job rather than playing games and talking with all these charts and everything else saying what the private sector can do and make the private sector do the job and when we talk about making the private sector do the job. Remember that the private sector moves because of incentives and profit. And if we do not put the incentives and profit to the private sector to do the job they're not going to do it and it is simple as that and I think that all of you men in government recognize that fact. The panel is now or had another addition Mr. Thomas Atkins director

of the Massachusetts Department going to do some development we will be glad to hear from you at this point. The Commonwealth of Massachusetts is very concerned about the planned determination of the Office of Economic Opportunity. There are many ways of measuring the impact this program has had in this state. I could for instance tell you that one hundred ninety two of our three hundred fifty one community are now participating in this program represented by Community Action Agency. These communities began the gamut from our biggest Boston to our smaller communities across the state. These communities like their counterparts across the country have come to the realization that previous governmental efforts have not adequately recognized nor met the needs of the poor. The community action programs that build great voids left in the fabric of government by traditional public programs in many instances without these programs and agencies the low income citizens

would have been both unserved and unheard. I could tell you that the 24 agencies which exist in this state serve communities containing approximately 75 percent of the population of the entire state. This is meant that virtually all the major population centers in the state has been served by a community action agency and in virtually all the poor citizens of our state have had an advocate close at hand where the advocacy can make the crucial difference. I could tell you that the 24 agencies were responsible for attracting some 53 million dollars into the Commonwealth of Massachusetts in 1972 and their efforts have already resulted this year in some 42 million dollars being earmarked. We recognize the importance to this state of the community action programs and of their parent agency the Office of Economic Opportunity. Oh you know it's been important not soley because it makes money available though it does. But more importantly it makes it possible for every OIO dollar to be

leveraged into two other federal agency dollars. The Ojo problems have been important to us because they are flexible funds not earmarked for a particular project as are almost all the other federal agency funds. Let me be specific in 1973 we have so far received notification that the Community Action Agency will be receiving assuming OIO continues approximately forty three million dollars from a variety of sources for their program and examination would show the following profile of funding sources. But a part of labor will provide about 41 percent of those dollars. The Office of Economic Opportunity about 34 percent 80 w about eighteen point six percent. State agencies about 4 percent. Private sources. Point four percent. All other sources combined. 2 percent. This means that the federal government has been the source of funding for over 95 percent of the Community Action Agency programs in this state.

While it may be argued that others should carry a more significant share of this financial burden the conclusion is inescapable that no other funding source will materialize between now and the end of this fiscal year. The timetable for the demise of only up. We recognize the value of diversified funding sources as do the Community Action Agency as illustrated by the fact that all we know is not the major source of funds today. However the significance of the yoyo funds has been that they have made it possible for the other moneys to be sought and obtained. I need not explain to you gentlemen the arduous task of applying for and receiving funds from federal sources. Nor do I need to spell out how long a process this usually is. It is a rare federal agency which can move around the rings of paper it demands on application forms in less time than four to six months and frequently it takes nearly a year to consummate a program funding

application. The Ojo monies have made it possible for the community action agencies to weather the storm a federal paper long enough to reach the bright day on which the program funding is announced. Without these kinds of flexible funds it is predictable that the programs all of them will collapse. It is deceptive to assume that so long as the special purpose funds are available the great bulk of these programs can continue our experiences indicated that the only reason the special purpose funds are available is because of the efforts of the local agencies and people hired with Ojo money efforts which have been successful in convincing a number of wind federal agencies of the importance of altering their operational styles so as to accommodate the needs of the poor. In fact most of the funds which now come from other federal sources and other federal agencies are funds which Ojo used to provide for programs which Ojo and its local

agencies originated and developed in a viable operation. We cannot afford to replace the federal funds which have made the many programs which will be described to you today possible. At a point in time when the state governments are being required to assume an ever increasing proportion of the costs of local programs. We are simply unable to also assume the costs of federal programs even those with which we agree and whose importance. Is on question. It is still the case that approximately 70 percent of all taxes collected in this country by all levels of government are collected by the federal government. Of the remaining 30 percent it is what roughly 60 40 with the municipalities receiving the 60 and the states receiving the 40. That means that a mythical or imaginary tax dollar in this country is divided up among the federal state and local government. This way the federal government takes 70 cents. The local governments take 16 cents.

The state governments take 14 cents. Perhaps more than any other state Massachusetts has shown a willingness to assume the cause of social programs. We have housing and urban development programs which virtually parallel all those at the federal level. In fact this state finances the construction of more housing both public and moderate income. Then does the federal government in the States we have similarly assumed great proportions of the cost for transportation education environmental protection consumer protection programming for elderly citizens public assistance unemployment compensation workman's compensation and a host of other programs in most of these areas our standards are higher than those of the federal government. In 1964 the state started its own domestic Peace Corps program. And right now more than 300 citizens are paid by the state to render service to local governments and agencies through our Commonwealth Service Corps.

We have we feel been responsive and responsible in meeting the challenges which face our state and the needs which face our citizens. We have we feel therefore the standing to point out to the president and the Congress the great difficulty which this state and others like us will encounter if the Economic Opportunity Act is allowed to become simply another piece of paper. We feel that the need today for the programs of that legislation are as great as they have ever been. We feel that there should be even increased support to the efforts of the state and local agencies which have tried to confront poverty on its home ground and which have shown remarkable progress. We do not feel that the programs of the yoyo have been without defect and we would welcome the opportunity to join with the federal government an effort to evaluate and improve upon these programs. We recognize however that the occasional defect nowhere equaled

the success of these programs. In conclusion Mr. Chairman let me reiterate our willingness to work with the Congress. Or And the president to improve it. But in the war against poverty which was declared nearly a decade ago but which has not yet even clearly identified the enemy much less eliminated. This is a war which this country cannot afford to lose because more than any other war in which we have been involved our very existence as a nation hangs in the balance. This is no time to become battle weary. Thank you Mr. Wright. Thank you. General I thank you for this opportunity to appear for you again.

Q I appeared in Washington but other members of the committee present here today whom I'd like to address my remarks. I'd like to take a few minutes to tell you about my own personal experience with Boston's anti-poverty agency known as ABC. This organization created in the early 1960s was originally funded with foundation money and with the express purpose of reorienting the efforts of established private as well as public include social service agencies including public welfare education corrections and so forth. When the anti-poverty legislation was passed the mayor and city council designated AB CD as the Agency to conduct the war on poverty. The board of directors as then constituted was to a considerable extent the traditional representatives of established agencies of which I was one. Being at that time president of the United Community Services which is the Red Feather agency of Boston. The board also included the mayor and certain other city department heads such as public

welfare as well as a few residents of the target areas to be said and including two or three members of the black community. The staff at that time consisted almost exclusively of college graduates many with post graduate degrees including several Ph.D.. They sat in their opposite in downtown Boston and design programs for people in the low income areas without much if any consultation with those people. After a few months of this as you can well imagine the low income people themselves got organized in the neighborhoods and failing to make a dent on A B C D they went direct OIO in Washington and persuaded ojo to cut off funds dey BCT until such time as ABC they could reconstitute itself in compliance with the letter and spirit of the Ohio legislation. As a result of this. The board was completely reorganized in 1965 with 51 percent membership from the neighborhoods which had created an area planning action councils known as a PACs.

Members of the board of the PACs were elected by popular vote as they still are. And the board of 51 members includes 26 representatives from the PACs with heavy representation in black and spanish people Spanish speaking communities. The new board created in 1065 also included nine members of the city council or their representatives as well as 16 representatives from other public and private agencies in the city. Important minority groups labor religious groups and so forth. Or as required by all your legislation. Now I can assure you that when this newly discovered portion of neighborhood people hit the traditionally rooted conservative body of the old ABC there were many explosions including name calling table pumping and other poems of nonconstructive behavior. Unfortunately many of them represent representatives of the establishment became disenchanted by this and dropped out of the picture. But some of us stuck with it until we came out into smoother waters. Because we

all finally came to the realization that no one element could accomplish very much alone. By this I mean the establishment the neighborhood people or the duly elected political bodies it had become clear or that only through all working in unison could anything much be accomplished. And much has been a very extraordinary amount has since been accomplished as you have already heard. By 1968 the heat of this battle had started the mythical melting pot to truly melt and one indication of it was the fact that in late 1968 I was elected president of the board of ABC the directors polling a few more votes than a black neighborhood representative of the board who ran against me as proof of what we are now doing in the business is worth noting that the greater Boston Chamber of Commerce has the three years been hosting a lunch of which A B C D has been the special guest where A B C D has paid special recognition to companies who have developed programs to encourage minority and low income people into the stream of

economic life. Now gentlemen the important factor of this whole story has been the existence of the opposite economic opportunity in Washington and one of the most important innovations in that legislation was the concept of community action community action involving control of programs by the people to be served by the program has been the cornerstone of this entire operation. I have witnessed it through all its trials and I can testify through personal first hand observation and participation that it is working in Boston and if it works in Boston it can be made to work in other cities throughout the country. It is this very element of the program that the president's budget is designed to eliminate. Congress has already passed legislation to continue Ojo through June 74 but the present administration has seen fit to take the law into its own hands and terminate it a year earlier than that. I urge you in this progress possible way to judge these programs not by the errors of the past or by the birth pains through which they have

gone but by the fact of the present and the hopes for the future based on the recent trends for the salvation of the country the Congress must take control of governing this country so that we may again have a government not by executive fiat but ob the people by the people and for the people. It's just dire. The work of the state of the Commonwealth is in the last years of effort. At this point is under way to provide a mechanism to support community action agencies should that become necessary. The major effort Congressman and I were making is a try to convince you not to let it happen. Come about that the OIO program is going to be terminated. I can and I'm not trying to be facetious I understand both Russ and 10 of your question. I can only say to you in the most stark

terms we don't have the funds to continue these programs they are not available out of state funds nor are they available as far as we can see out of the promise of revenue sharing and special general. We are at a complete loss at this point in time to understand how we can muster the amount of money that would be necessary. Even if it were possible eventually to get the money together it certainly can be done on the timetable that has been put forward by the director of the Office of Economic Opportunity. So at this point in time what we need is time. It's entirely conceivable that we working along with the municipalities and the private sector might be able to devise sources of funds that would replace the 95 percent that now come from federal agencies like the one hires and that's what worries me.

That is here is this confusion and very clearly if you want to talk about local initiative fungible you know that amount. That is now available to community action agencies in the Commonwealth is something that at this point is in jeopardy. I think that's I think that's an illusion. Congressman in all due respect I think it is an illusion to think that all we're talking about are local initially. We're not just talking about local initially files we're talking about the entire economic opportunity program. I'll tell you why I say that while it is true that the terminations of OIO would signal the end slowly of the local initiative fund it is also true that most of the other programs and most of the other federal agency funds that exist do exist because of those local initiatives Bunz and the efforts they made possible now you take away the local initiative fund. No. Either through other nonprofit public organizations or through

public organizations the kinds of programs that are now available in the Midwest are. That's exactly what I'm saying. I'm quite honestly. This state is so different from my own state of Wisconsin where can I get that alternative capability. I'd like to think a lot of others not that apparently you know what worries me a little bit is that I see the legislature in Massachusetts a former state senator $33000 about to make a film now at the state commonwealth of Massachusetts and his legislature a former political hack that kind of money then what's it doing for the disadvantaged that would hire 5 6 7 people to carry out some kind of a poverty program. Thanks and I and I would I would hope that everybody state government local units of government would be willing to

assess formally forcefully and clearly what it does in the expenditure of money. But with all due respect. The eloquence of the statements that have been made by this panel in support of A B C D and I concur it's a good agency. It is inconceivable to me that there is not the capability in the Commonwealth of Massachusetts whether through AB CD or other kinds of organizations to supply the kinds of services that the Office of Economic Opportunity is is carrying on because I think the message is very clear that even if we provide money for fiscal year 1974 for all y'all that's it. It won't go beyond fiscal years 74. So my hope is that the legislature in Massachusetts can find a way to take some money besides paying for Joel Ward's film project to help ABC and wester and the Marlborough and west and solve for Owen.

What other agencies in other cities you've got Congressman you know in an effort to do that job. We'll respond to both your statements and your question. Sure. Thank you. Let me let me say first that. I'm not here today to talk with you about whether or not Senator Ward former Senator Ward should have been hired nor I suspect is that the reason why you came here today. I am here however to say to you that we cannot at this point in time. Replace the funds the federal government has made available for community action programs. It would be difficult enough to do that by itself. It would it is even more difficult for us to contemplate that at a point in time where we're also being asked to replace housing funds urban development and environmental protection and consumer protection funds education educational development funds funds for other forms of public assistance and funding

a wide range of funding sources while maybe your particular concern my big cannot this small amount of money over here be met. We're looking at the entire range of non choices that presently are being offered to us. We feel like we are less than the little boy at the dock and I'm saying to you very very clearly we cannot replace the federal government as a funding source unless the federal government is prepared to take less money in taxes. From the citizens. Thank you ma'am. Thank point you make I well understand though I must say very honestly that I would not foresee a tax reduction come we don't see that regardless.

But you know there is that there is a problem for both of us in effect. I'm the one hand we have now provided and I don't know how much the state of Massachusetts gets for revenue sharing but if the city of Boston gets 8 million of Worcester gets two million for then clearly the state gets what 40 50 60 million dollars in rooms. That it is told is new money comes out of the taxpayers of this country is distributed by the federal government to be used in so far as possible by state government by local units of government in determining priorities. Now that poses for you on behalf of the Commonwealth of Massachusetts. It seems to me some responsibility in terms of assessing and reassessing what programs ought to be maintained ought not to be maintained. Conversely there is this problem that we're posing for you and for us in terms of the Congress

about the whole thrust of the redirection of government which is to try and provide greater flexibility to local and state units of government to spend money on programs. I'm only suggesting to you by way of that that I would hope as you eloquently plea for plead for. Our understanding of the effect that all of the program reductions have in this state or in this region. You would also be willing to help us and to work with Gus Hawkins or a Bill Clay or a Joe Moakley in their understanding that one of the ways that is available to help is to move on manpower special revenue sharing comprehensive manpower and Community Development revenue sharing special revenue sharing block

grants because of what that will enable city local units of government and state governments to do to make this puzzle work appropriately. And I will say this to you I'm perfectly willing to use all of my employees with Congressman Hawking Immokalee. To convince them of the merit of both general and special revenue sharing in addition to the program funding which is now available because even with the two things added together the imbalance that presently exists at the local state and federal level tax and revenue collection and the ability to generate revenue will still be an immense imbalance unfavorably tipped in the federal side. We cannot continue to have the massive disproportionate amount of responsibility for providing direct service to our people at the local and state level and on the other hand the resources at the federal level. We can't continue that imbalance. So I join

with you in looking forward to real revenue sharing funds not in place but to supplement the funds that are now they'll add on that mission. You and I can work together. America rancher you are next. Chairman Hawkins and members of the committee I am Robert French maire of Gloucester. I regret that time did not permit me to prepare remarks in detail but I shall try to be brief and to the point. I would like to present our sketch a rough picture of a small city and Boston's north shore Laster has approximately twenty eight thousand people and it has serious economic problems despite some bright spots in the economic picture. Sixteen percent of families are below the poverty line

in terms of a $4000 income for a four person family. The average family income median family income is fifty two hundred dollars and one thousand sixty seven. There is 12 percent unemployment which fluctuates widely on a season seasonal basis. The overall impact of the proposed federal budget cuts on the economy of last year is rather formidable. The city anticipated approximately 10 million dollars from the programs being cut from the federal budget in fiscal 74 most of these were capital programs. But and perhaps some will be funded from other sources but nonetheless the total picture is as impressive if it is realized that the city budget including

schools during this period is approximately 15 million dollars. These covered sewage water treatment housing industrial parks schools mental health open space acquisition and a number of other things. The principal impact of OIO and Laster is through action incorporated an agency which has been with us for seven years and serves other parts of Cape as well. Wherever people have stood in need and last or whether they are poor or old or young. Action has come forward with a great variety of imaginative and constructive programmes. These included of a great number of community programmes such as the neighborhood youth car head start home start family daycare and others. It has included a surplus food programme serving 4000 persons. When I when the bus company serving the capon area

demanded a prohibitive subsidy from the city government action stepped into the breach and took over the operation of the buses at a considerably smaller subsidy and a more efficient schedule. Currently under development as a proposal for 91 elderly housing units to be achieved through conversion. I have an old school in the city. Other activities have included the development or encouragement of the new and industrial and production company. The total budget for action incorporated this year amounts to about one quarter one and one quarter million dollars roughly 300000 of this comes from and this is immediately threatened along with some 15 jobs in the agency.

The programs which are served by the funds are are critical. And then the direction of the agency. It is not just the programs that we fear losing but the ideas and the mission which action has provided in the community. Thank you. For the chance to talk to somebody rather than just crying among ourselves. We are delighted. Thank you. Let us tell you about it. And I just want to tell you a little more about the feelings that we have in the city of Cambridge about about the fact that the war on poverty has had the city of Cambridge. I. And it's not only the programs that we've got used to

and therefore that we're afraid of losing. Which I will mention just just just won us the Neighborhood Youth Corps which provided 600 jobs last summer to young people. And that is not something that you need to make a rhetorical speech about. You know when you meet somebody in Cambridge and you say by the way we're not going to have 600 jobs for young people next summer. Your voice drops. People don't even shout it is a very frightening prospect. I hope that the Congress somehow will manage to fund at least the Neighborhood Youth Corps at least through the summer. And I'm sure that you're hearing that from all the mayors all over the all over the country. Looking back on our relationship with the LBO agency in Cambridge

it's a history of it's a history of disagreements of fights of irritations and of programs that they have sold us which we knew we needed which we know now we need and which we wouldn't have had if it hadn't been for this agency. We knew we had elderly people who were hungry. We knew that the housing for our elderly in Cambridge was completely unsatisfactory. We wouldn't be doing anything about it because the city government is so hard to move. If it hadn't been for the LBO agency or the citizens groups helping us to identify needs and for the continuing help that the staff gave in lobbying in lobbying for the poor because who lobbies for the poor. We know that we had. People in Cambridge who don't speak English and who were not getting government services because they didn't know how to get government services. If it weren't for all we owe we wouldn't have moved in that area.

Legal Services Head Start or follow through. These are all things that we know now that we needed that we know now that we can't get along without. We wouldn't have known without a wheel. And as Secretary Acton says the war is not over. The elderly people in the city of Cambridge are better off than they were five years ago. But God knows my conscience isn't easy about them. The program itself needs to continue in the overall program as well as the programs that it has developed for us and some of which we're going to hold onto and some of which we're going to beg you to refund for us. Thank you. Which witnesses Mr. JOHN CLARKE. Mr. Chair Mr. Chairman All morning we

have heard of the very heroic work of urban community action agencies. I hope to give you a very small glimpse into some of the work in rural areas from Mont being very rural for those people haven't been there. We just managed to get more people than cows. But it looks like the cows are great and gaining on us again. I'm a member of a national board funded by Ford Foundation called National Area Development Institute that's concerned with non-metropolitan development. I have worked in a number of poverty programs and I've served on a number of boards. I would like to share with you some of my feelings and insights into the impact since that seems to be a very current phrase from Mr. Philip's office. The impact. Which the Office of

Economic Opportunity in the state of Vermont has had. And this is not an inclusive list but it certainly is something that is very apparent to anyone that comes into the state in the area of health. There was precious little outreach identification and delivery of services to poor children prenatal and postnatal care prior to Ojo and its outreach function. If it were not for OIO there would be no Planned Parenthood in the state of Vermont. There would be no dental program in the state of Vermont. For while various organizations came and be wailed the fact of the poor dental health in the state. No one was willing to go up the hollers and up on the mountain top and find people talk to their fears. Ask them would they not come into a health clinic and provide that

transportation. I have had a most disagreeable experience with quote unquote in line federal agencies as recently as six months ago in the state of Vermont with regards to health and I think that you gentlemen should be aware of this because it points up I think more clearly than anything else. The misconception that we can turn functions and a dribble of money back to Main Line agencies and that those people who have historically not been in the mainstream of the American dream are going to be picked up. I refer specifically to a one million dollar grant one hundred thirty two thousand to be precise. It was made by an open ization with the acronym Horace ma ha. I call it the HMS Pinafore. It was funded to design a health delivery system which would deliver health care to high health

risks populations as defined by the Department of Health Education and Welfare. This means the aged the extremely young pregnant women and the particular population was exclusively ignored. After some three hundred thousand dollars have been expended in 18 months of jawboning when members of community action agencies requested to come before that board doors were locked. When members of community action agency submitted statistics showing that outreach was not occurring contact was not being made and the needs not desires gentleman needs of women children and the aged were not being met. They were shuffled off as crackpots and other such like terms. I have no faith whatsoever

that in line agencies have the capacity the commitment or the gut. To reach to the bottom of the barrel for those Americans who have for too long. Missed the boat through no fault of their own. Let me give you another example of inline agencies directly related to rural America. It is known as the Farmers Home Administration. That is a part of the Department of Agriculture for my urban brothers and sisters who do not understand the workings of some of the federal government. They were mandated to build housing. Under 1 percent subsidized loans known as self-help Bible one Bible for not one I repeat not one single house was built in the state of Vermont. Under that appropriation which you gentlemen and your colleagues in the Senate appropriated money for until the various agencies the Office of Economic Opportunity in the state of Vermont literally went and

stood in the door of the state administrator's office I personally and many other people speaking to then Governor Phil hopped about the gross inadequacies. We're not interested in country clubs is built out of Kentucky and Indiana with money that's supposedly going for people's housing. Sixty six and a third of all the letter dated housing in the United States of America is in rural America. Gentleman and it hasn't been touched. Our health care our housing our children and our old folks are being ignored shoveled under the table. We have money for magnificent interstates to truck goods that are produced that oppressed wage out of the state but not to bring food medical care job opportunities. In my particular area three counties in the northeastern section of Vermont the

unemployment rate is between 18 and 20 percent. You said that can't be it can be a gentleman because we do not count women who have never registered. We do not count the 16 and 17 year olds who have never been in the job market who are out beating the pucker brush as we say up there looking for a job or for the man who has not had a job in the last year. Those statistics do not show up in the deal well statistics about the unemployable. There are no jobs. There are hundreds of people looking for jobs. And if we take away the precious few jobs that are provided and the fantastic services of the OIO in the state of Vermont we're doing a great disservice. Approximately one million dollars comes into the state. And of that the accepted generator factor from Brookings Institute is 4 which means we have 4 million we've generated in income. And approximately 900 people are working off that money and I'm talking about the little shopkeeper for the seventy thousand dollars I personally expended for groceries last year for daycare programs that are now being

cut out. That man may not have been for as long as we were in business but I got news for him. Next year is going to be lean because there isn't going to be $70000 revenue up there buying dry goods and other supplies from his stores as there was in the past year to Talk of the cutbacks to talk about the liquidation. What is going to replace it. I'm told well there's an Extension Service gentleman in it's heyday in 1013 when it was established it was a magnificent tool. But that day is gone. And I'm not going to here play games with you or give you bogus figures or plead bleeding hearts. The poor no longer have land in this country in rural America. Vermont is second in the nation and personal property taxes. We're not going to be able to answer representative Steiger's question about who will pick up the tab. I can assure you Vermont will not. We don't have the money. We're a poor state. We're a small state. We're a drop in the bucket.

We've lost 4000 farms in the last 10 years and we're going to lose what we've got left. Given the economics of this country and the Department of Agriculture and a poor man cannot go into farming. The industries require education and technology. We do not have either of those readily accessible to poor people. We are trying. We are trying desperately. I come before you angry. Because I consider. Some type of a bad dream. To be talking. Taking away. We never talk about giving. You talk about taking away we blame the victim. We blame the poor man for being poor. He did it. He didn't do anything gentleman. He's trying to live.

I thank you for your time. I am sure they want to exercise an option right now because I know that the witnesses before us have an. Articulate and profound. I can certainly say that we've never had before this committee a witness is any better than those who were seated before the committee now. Mr. Manning to hear from you members of the distinguished committee we're very pleased to have you in Washington for a short time a very short time realtors of America had some hope that genuine relief from the drilling existence and from the paucity of services available to them. But this snow stirred by the promise of the White House Conference on Aging which

temporarily escalated the visibility of retirement problems died because before it came to for life. It has been cruelly and callously aborted by the very leaders who feed us the dazzling rhetoric and manifold promises. There was talk of a peace going and now we learn that our military machine will cost more in this year of peace than it did last year. There was talk of a guaranteed minimum pension geared to the intermediate budget of the Bureau of Labor Standards as adopted by the delegates to the White House conference. Instead the 20 percent Social Security in Greece voted by Congress is being rapidly eroded by a wave of inflation. So that's some of the staples of life have become luxuries and we keep a respectable distance from the meat counters when we shop. We have

been told to eat fish and cheese when the prices of these have risen. We have been advised to eat less. I theory that many of our elders are at the irreducible minimum. And for them to eat least less rather would indeed endanger their very survival. There was talk of an expanded housing program. Instead a moratorium on housing has been imposed which will at least have a serious effect in delaying new housing for hundreds of thousands of senior citizens who were recently need a decent home at a price they can pay without sacrificing other necessities of life. Under the heading of all we owe Mr. German there is appended to the statement a list of Community Action Program now under way

from one end of the Commonwealth to the other. I have listed only though which you either partially or wholly serve the elder. I will make a copy of this available to the committee. I have only one copy of that. As soon as I can get somebody typing I will forward additional copies to Washington. And may I also indicate that the statement you're presenting to the committee in its entirety will be printed in the record so that it isn't necessary for us to witness a necessary part of that statement. You're doing a fine job and we appreciate things sometimes in these hearings. To summarize and to bring out other points in addition to those that are included in these statements is a much better way of handling something rather than just really interesting.

Connelly were you doing excellently. I should like to point out. I will read only the section on your drivel. Here it is. There is a Community Action Program now under way from one end of the Commonwealth to the other doing when regional is scheduled for extinction. Its occupants will be evicted in April and CA's will lose their managing and planning. Are the eight million dollars which these agencies received last year was the leverage for about 44 million dollars in federal funds for a variety of programs to promote the well-being of the poor the elderly and the handing inform River for example one hundred fifteen thousand was budgeted for community

organization one hundred forty four thousand three fourths the grandparents. I'm Cape Cod and the islands are health and nutrition program is in progress and it's very vital to those that serve. There is also one hundred twenty seven thousand dollars budgeted for legal services for those who otherwise would be might be denied the right of due process and a hearing in court in a row and outlying communities. Two thousand four hundred seventeen persons are served by a housing program and the distribution of community foods to fifteen hundred persons. And I might point out very briefly Mr. Chairman that one of the important of functions of many of these community agencies is to assist the elderly in obtaining the surplus food. A package of surplus food for all of the items are available in a particular delivery date weighs about 25 pounds. And very often the elderly live at a distance from the

centers. Some of them are partially immobilize. And I was they have assistance they will not be able to avail themselves of this of this particular program. These are but a few examples. The whole story is told in the appendix to the statement. It is said that many of these programs will be transferred to other agencies but the truth of the matter is that the loss of all we always a planning and administration arm will be a serious blow to the continuance of these program on an effective and humane basis. The elimination of the local initiative section 221 of the economic opportunities act. Means the end of three component part administration planning and outreach services which are the glue that held the CA's together in Massachusetts for example where Human Services comprise such a significant part of the budget. The

loss of these agencies as an implementation arm can only cause additional financial difficulties to the state which you get ill afford to bear. It is my fear that the dispersal of these programs will seriously interfere with their effectiveness and might even mean the eventual end based on my experience in dealing with agencies. I would say that in most instances where the programs of elders are dispersed with others we get the short end of the stick. And finally I would like to say Mr. Chairman and members of the committee that I believe these programs could be improved. Norm. Other government dealing with the problem of those who need the care and attention of our government is immune from criticism. I think that our senior citizens will in the future

have more input to these programs because in the long run. There are no experts in the problems of the elderly who are better qualified to handle them than the elderly themselves. We believe that the loss of our will will be a serious blow to the elderly of this state and it is our hope that your committee will give serious consideration to find a method to re-establish the savings. Combined with the increasing cost of Medicare combined with things restrictions of the new social service regulations I want you to believe and I had an organization which earns one hundred eighty gloveless with 40000 senior citizens and I need not get my inspiration or my material from textbooks. I get it from the very fabric of life and believe me with the loss

of a great portion of my 20 percent increase in Social Security and with no income plan if the president said to us we will give you an alternative. We want to give you an income in line with the needs of the 70. If the president said we will give you a health plan that will really meet your health needs and a housing program and a home care nutritional program. What I see no alternative on the horizon and I am deeply disturbed and we don't intend to stand idly by. I hope you will assemble thousands of senior citizens in Washington so that we can invoke the democratic process. And I would like it possible for the president to listen to some of the senior citizens themselves. Thank you Mr. yours.

Thank you.