Strengthening the Partnership in Intergovernmental Service Delivery Issue Summary We in the federal system realize that we cannot reinvent government without successful participation by our colleagues in the states and localities. The simple fact is that state and local governments manage some 600 federal grant programs that cost over $226 billion in fiscal 1994 alone. The execution of these grants makes state and local officials ultimately responsible for many services mandated and funded by Washington. In the past, the federal departments and agencies, who serve as grant administrators, have often attached long lists of conflicting rules and regulations. These have drastically limited program effectiveness and quality of service. The problem of federal micro-managed grantmaking has become most acute when a state or locality has attempted to mix and match federal grants. Often, this is done to improve services in several areas simultaneously, such as health, education, and jobs. Local governments have suffered even more when the federal government has substituted a mandate for a grant, maintaining control and dictating rules but taking away the funding. This is an old problem. Others have made valiant efforts at improvement only to fail when confronted with the politics of special interests. But the present grant system has become so unwieldy and ineffective that many in Congress are demanding a new way of doing business. Joining Congressional advocates are the National Governors Association and the National Conference of State Legislatures. Both have proposed grant consolidation plans that give states and localities much greater flexibility to improve quality of service. The National Performance Review is implementing five specific recommendations to reinvent intergovernmental grantmaking. As in other areas, we are especially concerned with shifting management s focus from compliance to outcomes. Most of all, we recognize the importance of partnering with state and local governments. We must initiate a collaborative effort now and in the future if we are to realize meaningful and continued change. Over the past year, working together, we have made progress. The President led the way by creating the Community Empowerment Board that is overseeing some 100 initiatives to give local communities more control and flexibility in managing federal grants. He has also strengthened the administration's intergovernmental advisory committee that meets regularly with governors and mayors. Federal, state, and local agencies are cooperating to streamline grants' procedures affecting the needy, children, and families. OMB is considering ways to abolish needless paperwork and simplify reimbursement to states and localities for grant administration costs. Congress has responded with initiatives to speed up and consolidate the administration of education grants for states and local school districts. The NPR would like to offer a special welcome to the many officials from states and localities who are attending this Open Meeting session. Here you'll find your colleagues from federal grantmaking departments and agencies. Your participation will go a long way toward energizing, refining, and implementing NPR Recommendations affecting the delivery of intergovernmental services. During the next two weeks you'll be able to connect, engage, and network with participants across the federal workforce. By sharing experiences and ideas on government reinvention, this Electronic Open Meeting will help forge the enterprising and pragmatic solutions needed to create a government that works better and costs less.
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