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Statement of Robert D. Reischauer, Assistant Director for Human Resources and Community Development, Congressional Budget Office, before the Subcommittee on the City 1 (March 1977)

handle is hein.congrec/cbo9429 and id is 1 raw text is: STATEMENT OF ROBERT D. REISCHAUER ASSISTANT DIRECTOR FOR HUMAN RESOURCES AND COMMUNITY DEVELOPMENT CONGRESSIONAL BUDGET OFFICE Before The Subcommittee On The City Tuesday, March 29, 1977, 10 A.M. Mr. Chairman, I wish to thank you for providing this opportunity to discuss with the subcommittee the ways we might better ascertain the impact of the federal budget on the nation's cities. This issue is a difficult one; but it is timely and important and an effort must be made to improve our understanding of the budget's impacts. Concern for the nation's cities has grown as a number of the largest ones have entered an era of economic decline that some analysts assert may be irreversable. There is concern that federal policies may have inadvertently contributed to this development. It is time, there- fore, for a comprehensive review of federal activities and their impacts on the cities. If we can understand the impacts of past actions on cities, we stand a better chance of being able to prescribe the types of policies that might be beneficial in the future. Since the budget is the single most important indicator of federal actions, it offers a useful starting point for such a review. The formulation of a budget involves two types of decisions. First, overall spending and revenue levels must be determined so that an effective fiscal policy can be implemented. Second, specific allocations must be made to various programs; this process, in turn, establishes national priorities. Cities are affected by both types of decisions.

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