Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: THURSDAY, March 22, 1990 TAG: 9003222587 SECTION: NATIONAL/INTERNATIONAL PAGE: A/2 EDITION: EVENING SOURCE: Associated Press DATELINE: WASHINGTON LENGTH: Short
The federal government has compounded the problem by slashing financial support while imposing costly environmental and health regulations on the public works network, the study said.
"Federal spending is likely to continue for the short term to focus on health and social programs, defense and national debt service," said the report by Congress' Office of Technology Assessment.
"State and local governments must expect to finance a larger share of public works with their own revenues - general taxes and fees - and, where feasible, with private sector partners," it said.
"The nation's 83,000 local governments are in an unenviable position - they take the direct political heat generated by public works issues."
The report said public works have reached "what many call a crisis point" because "the costs of services that local governments must or wish to provide have outstripped the political acceptability of raising property taxes - their most important source of revenue."
Two weeks ago, President Bush announced a national transportation policy that would shift more costs to state and local governments, calling for more toll roads, local gas taxes and user fees. The plan was criticized by some local government officials who said their budgets already were stretched to the limit.
by CNB