A Little Bit for Everybody

A new urban policy spreads its benefits thinly

Two years ago Candidate Jimmy Carter promised the nation's mayors that if he became President, they would have "a friend, an ally and a partner in the White House." The pledge delighted the mayors and won him the enthusiastic support of many urban blacks, whose votes provided his margin of victory. This week, after a series of delays and bureaucratic bungles, the President is finally preparing to put his words into action. In a televised address from the White House, he will present his new urban policy, which he describes as "a new partnership to conserve America's communities."

As outlined by Administration aides last week, Carter's policy seeks to offer something for just about everyone, but almost no one will be entirely satisfied. The "partnership" offers-several innovative and much needed new programs. But for the most part, it is a repackaging of existing ones. Moreover, reflecting Carter's promise to balance the budget by 1980, he has kept a tight--some would say miserly--grip on the purse strings. He intends to add only an estimated $3.5 billion to the $85 billion to be spent to aid states and cities in fiscal 1979.

But Administration officials argue that the policy nonetheless represents a major change of direction by Washington in its treatment of urban problems. Says Secretary of Housing and Urban Development Patricia Harris: "Probably the most important policy change is that all programs and activities of the Federal Government will be examined for their impact on urban areas. That's not sexy. That's not jazzy. But it is very important."

Carter's statement on urban policy was born amid bureaucratic fumbles and intense infighting. Two months after his Inauguration he set up a committee composed chiefly of six Cabinet members, headed by Harris, to work out the policy. Harris and HEW Secretary Joseph Califano were immediately at loggerheads. He favored programs that would directly help poor people no matter where they live; she wanted to get money into distressed urban areas. Treasury Secretary W. Michael Blumenthal, who was opposed to any idea that would reduce tax revenues, resisted proposed tax cuts or incentives for businesses located in distressed areas (Carter finally overruled him). To make matters worse, some participants regularly leaked early drafts of various proposals from the committee's working sessions, causing spirited lobbying of the Administration by Governors, mayors and community leaders.

The committee's first two drafts of an urban policy were rejected by the White House as poorly put together and too costly (about $10 billion a year). Harris and her colleagues fell so far behind schedule that Carter could not obtain an estimate for his fiscal 1979 budget. As a result, the Office of Management and Budget came up with its own--$3.9 billion --which was also rejected. Furious at the foulups. Carter told Domestic Affairs Adviser Stuart Eizenstat to whip the policy into shape. Within two months, he and Harris produced a ten-page outline that Carter liked. In a note to "Pat and Stu" the President gave his go-ahead. "My whole family will help," he added.

The committee then drafted a policy statement containing about 160 recommendations for new programs and for improvements in 38 existing ones now run by nine separate agencies. Highlights:

STATES. To a far greater degree than before, Washington will work with state governments on programs to help distressed cities. One reason: while the Federal Government will have a $60 billion deficit, some states and local governments have been running surpluses that total $15 billion. Washington wants some of that money to go for urban renewal. As an incentive, the Federal Government will put up $400 million during the next two years in unrestricted grants for states that provide funds of their own to help rundown municipalities.

CITIES. Big-city mayors who oppose interference by their state governments will be given approval power over state-run programs. In addition, cities will receive $1 billion directly from Washington to clean up decayed areas; they will also get $200 million to improve public transport.

NEIGHBORHOODS. Self-help groups that band together to upgrade their neighborhoods will be able to apply for federal grants totaling as much as $100 million in the coming fiscal year.

MINORITIES AND WOMEN. The Federal Government will issue stronger guidelines to prevent discrimination. To help minorities and women who may now be trapped in dead-end jobs in the inner cities, the Administration plans to develop programs enabling them to go job hunting in areas where better employment opportunities are available.

JOBS. The Federal Government will offer tax breaks, subsidies and other inducements for businesses to remain in poor neighborhoods, to set up plants in them or expand existing ones. As a further incentive, a National Development Bank, nicknamed Urbank, will be created to offer the businesses low-interest loans.

Carter's urban policy appears fairly sound and workable. But it will doubtless disappoint many urban leaders. Most disillusioned of all may be blacks, whose expectations were sent soaring by Carter's campaign promises. Last week Vernon Jordan, executive director of the Urban League and one of the most influential black spokesmen on economic issues, called again for a domestic Marshall Plan to revitalize distressed cities. But his approach would cost many billions of dollars, which puts him far out of step with Jimmy Carter.

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