AID TO ECONOMICALLY DEPRESSED CITIES

WHEREAS, severe fiscal problems in such cities as Detroit, New York, Cleveland and Chicago have caused great hardship for children, teachers, and residents of those cities; and

WHEREAS, a score of other American cities are ripe for financial disaster in the very near future; and

WHEREAS, the 1981 federal budget being considered by Congress contains large cuts in social, economic and educational programs which are essential to American cities; and

WHEREAS, our economy is a national economy and distress in one area is detrimental to the nation at large; and

WHEREAS, the future of our nation depends on healthy, vibrant urban centers; and

WHEREAS, the wealth of our nation should be invested in our future through the development of human resources:

RESOLVED, that the AFT call upon the President and the Congress to establish an affirmative policy of federal assistance to distressed cities; and

RESOLVED, that this policy be credited toward a positive rebuilding of our cities; and

RESOLVED, that this policy contain such elements as:

• a federal development bank for distressed cities which will provide funds for rebuilding infrastructure, the industrial and commercial base, and the human base of our urban cities;

• a program of loans, loan guarantees, interest subsidies, and grants for community development in distressed areas;

• federal assumption of costs of federally mandated programs, such as public welfare;

• changes in federal formulas to concentrate allocations of federal aid to distressed cities in such areas as education, general revenue sharing, community development grants, manpower, and social services;

• federal incentives to improve social, health, and educational services;

• programs to encourage states to become active partners in aiding distressed cities.