Strengthening the Partnership in Intergovernmental Service Delivery

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.