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I <br /> <br /> / WASHINGTON, O.C, 20510 ~; <br />I January 25, 1982 .' <br /> <br /> Hon. ?homa$ Gamec <br /> <br />i Mayor of Ramsey <br /> 15153 Nowthen Blvd. N.W. <br /> Anoka, Minnesota 55303 <br /> Dear Mayor Gamec: <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br /> i've recently received many letters and calls regarding the <br />status of the General Revenue Sharing (GRS) funds provided to <br />local governments. I'd like to take this opportunity to share my <br />thoughts and some information on GRS with you. <br /> <br /> As you may be aware, I have been a long-time supporter of <br />the GRS program. I believe that more programs should provide "no <br />strings attached" funding to local governments. Such programs <br />provide localities the much needed flexibility to respond to <br />their own needs without having to comply with costly government <br />regulations. Revenue sharing is probably the most efficient <br />government program and should serve as a model for the block <br />grants which were included in the Omnibus Reconciliation <br />legislation passed in the summer of 1981 (a copy of my article on <br />block grants is enclosed). <br /> <br /> The funding level for GRS in Fiscal Year 1982 is now set at <br />$4.6 billion. Although the Administration requested a 12 percent <br />reduction i'n this amount, Congress did not comply. In the <br />outcome, GRS was specifically exempted from the FY82 budget cuts. <br />I think this demonstrates the popularity of this program here on <br />Capitol Hill, and it probably also has dampened any further <br />efforts by the Administration to phase out the program. <br /> <br /> To the contrary, I now hear there is a strong possibility <br />that President Reagan may actually propose an increase in GRS to <br />compensate for cuts in other categorical programs. At this <br />point, the amount of increase is still unclear. However, you can <br />be relatively certain that the program will be funded at a <br />minimum of $4.6 billion. <br /> <br />I <br />I <br />I <br /> <br /> One suggestion I've heard is to funnel revenues from excise <br />taxes (alcohol and tobacco, for example) into GRS. This is <br />consistent with Reagan's intent of "revenue turn-back" to the <br />states. I wholeheartedly favor this approach. <br /> <br /> I'm also enclosing my floor statement (which includes a fact <br />sheet) on the Urban Enterprise Zones legislation which I have <br />sponsored. I believe this bill can help stimulate community <br /> <br /> <br />