On my left? (None.)

Mr. EDMONDSON. Thank you very much, Governor, for coming. We appreciate the fine statement that has been added to our record, and I appreciate the helpful comments from 64 days of experience.

We heard the Governor from Tulsa, the other day, say that he had discovered after 64 days, that there were several problems in Oklahoma that would probably take a little longer than that to handle. I think that is our common experience.

Thank you very much.

Governor HALL. Thank you. I am going to take back with me the statement that the committee was very willing to listen, when I return to my State.

Thank you very much.

Mr. EDMONDSON. Our next witness will be Mr. Elmer George, executive director of the Georgia Municipal Association.

Mr. George is accompanied by Mayor Gerald Thompson of Fitzgerald, Ga., and Mayor Charles Bradshaw of Franklin Springs, Ga.

I might say, as I remarked this morning, that Congressman Landrum informed us on the telephone that this is a delegation that is worthy of our full attention. We are proud to have you before us this morning.

STATEMENT OF MR. ELMER GEORGE, EXECUTIVE DIRECTOR OF THE GEORGIA MUNICIPAL ASSOCIATION; ACCOMPANIED BY MAYOR GERALD THOMPSON, OF FITZGERALD, GA.; AND MAYOR CHARLES BRADSHAW, OF FRANKLIN SPRINGS, GA.

Mr. GEORGE. Thank you, Mr. Chairman.

Distinguished lady and gentlemen of the committee.

I think we do, in fact, bring a new dimension, or a different dimension, to the committee proceedings today than has been presented thus far.

I would like to comment on the fact that I, personally, am very conversant with the problems that we have in the area of chronic unemployment. I have been working in this area for a number of years. As mentioned, I did testify in 1961 before the Senate committee, considering and dealing with the problem of unemployment as they considered the ARA Act.

I would like to comment, if I may, that the approach that this committee is attempting in solving the problem of unemployment in the country is not unique. We can go back, of course, to the great depression days of the late 1920's and 1930's, when the Public Works Administration, of course, did do yeoman service in helping pull the country out of the doldrums.

The reason I was so much impressed with this was the fact that my father-who was working at Public Works at the time-had to rely on this particular program. It made a tremendous impression on the members of my family, at least, and certainly, it benefited the entire community in which I lived; it benefited the entire area from which I came. In fact, many evidences of those programs are still useful and in effect and still producing for the total well-being of the area and for the State.

I have had the pleasure of serving for 8 years with the distinguished—I was going to say this with your chairman sitting there, with Mr. Blatnik there-Art Naplin, the mayor of Minneapolis, who was chairman of the Community Facilities Committee for the National League of Cities.

I had the pleasure of serving for 8 years with that group within the National League of Cities. Many of the programs that have come before this committee were conceived in company, in partnership, with this committee, and politically pursued before the people, and I have some very fond memories of this kind of relationship.

We also have with us today the Honorable Charles E. Bradshaw, mayor of Franklin Springs, Ga. This is a small community, and he is representing less than 600 people. He does come out of an area of the State which is in the norther end of Georgia, which is in the Appalachian region, and with your indulgence, a little later, we would like to have Mayor Bradshaw make any comments from a personal standpoint that he might feel proper.

Mr. EDMONDSON. Mr. George, if it is agreeable with you, we will place your complete statement, with the attached exhibits, in the record at this point.

(Statement referred to follows:)

STATEMENT OF W. ELMER George, EXECUTIVE DIRECTOR OF THE GEORGIA MUNICIPAL ASSOCIATION

Mr. Chairman and Distinguished Gentlemen: It is a privilege and an honor to appear before the House Committee on Public Works for the purpose of presenting a statement on behalf of H.R. 5376, the "Public Works Acceleration Act Amendments of 1971."

My name is W. Elmer George and I am the Executive Director of the Georgia Municipal Association which represents approximately 400 Georgia cities and towns and, through them, approximately 60 percent of our state's population. I am accompanied today by the Honorable Charles E. Bradshaw, Mayor of Franklin Springs, Georgia, and the Honorable Gerald Thompson, Mayor of Fitzgerald, Georgia.

Mr. Chairman, as of January, 1971, 3.6 percent of Georgia's citizens were unemployed. Compared to the national unemployment rate of 6.6 percent, it would appear that Georgia's employment picture is bright. But this overall figure does not reveal the pockets of substantial and persistent unemployment that exist within our state. It does not reveal the human agony suffered by those of our citizens, rural and urban, black and white, who would gladly work but cannot find regular employment. Mr. Chairman, while many of Georgia's citizens go begging for employment, many of her cities and towns and counties go begging for urgently needed capital improvements.

During the past decade, Georgia's population increased 16.4 percent. But during that same period, Georgia's urban population increased by 27 percent. During this past decade of continued expansion, urban growth, and population concentration, state aid to our cities and towns has not kept pace. Although 60.3 percent of the state's population lives in urban areas, during fiscal year 1971 only 1.4 percent of the state budget was in direct aid to our municipalities.

A recent report of the Georgia Municipal Association updated revenue needs for capital improvements projected over a period of five years. The staggering total: $2.68 billion. Granted that $1 billion of this $2.68 billion is for rapid transit of which Atlanta's share is 23 percent, nevertheless, the overall figure reflects public needs that must be met if Georgia is to grow and prosper in a competitive economy and in a healthy environment.

The study reflects five year totals of $317 million needed for streets, highways, and bridges; $280 million for sewerage; $260 million for public buildings; $203 million for parks and recreation; $194 million for water treatment plants and water systems; $187 million for airports; $108 million for equipment; $69 million for public housing; and $67 million for drainage control-all in addition to

Atlanta's rapid transit needs. If we convert this $2.68 billion to 30 year bonds at 6 percent interest, it would require $142 million per year to retire the bonds. If we consider $56 million over and above projected revenues needed for employee wages, salaries, and fringe benefits, added to the $142 million for projected new debt service, an annual deficit of about $200 million is evident.

Obviously, municipal officials are looking to the State for help in meeting these pressing urban needs. We have high hopes that after years of neglect our new Governor, Jimmy Carter, and the present Georgia General Assembly will give our cities the financial help and tools they need to meet their basic responsibilities. But we know from experience how slowly the wheels of State government turn. The Georgia General Assembly has recently rejected our efforts to secure an additional $14.3 million in direct grants to cities. It is our belief that immediate assistance from the Federal government is required if we are to meet our basic municipal capital improvements requirements and bring relief to our areas of substantial and persistent unemployment.

Mr. Chairman, it is our belief that enactment of H.R. 5376 will do much to help our cities and towns and counties keep pace with their capital improvement needs and to provide immediate and productive employment for many of our citizens who cannot now find work. It is our belief that enactment of H.R. 5376 will stimulate our economy in those areas where it is most needed and, coupled with other efforts we are now engaged in, provide the stimulation for the development and implementation of a comprehensive urbanization policy for Georgia. We are particularly pleased with several of the proposed amendments to the Public Works Acceleration Act:

1. Title I, Section 3 (a) (1).-Seventy-two of Georgia's 159 counties are Qualified Areas under the Public Works and Economic Development Act of 1965. All but one of the 29 Georgia cities classified by the U.S. Department of Labor as areas of substantial or persistent unemployment are located in those 72 counties. At least two additional cities within those counties have recently suffered sudden rises in unemployment. Fifty-nine of these 72 counties lost population between 1960 and 1970. We believe that the inclusion of these counties and the cities and towns within them as "eligible areas" will be of tremendous benefit to our state if this amendment is approved.

2. Title I, Section 3 (c).-Increasing the maximum federal grant under the Public Works Acceleration Act from 75 percent to 80 percent will encourage our cities and towns and counties to make full use of the opportunities available under the Act. Since 80 percent funding is available under the Public Works and Economic Development Act of 1965 and the Appalachian Regional Development Act of 1965, failure to approve this amendment would discourage use of funds in favor of 80 percent funds when available and result in harmful delays. It should be recognized that in some instances, local governments will be completely unable to raise their required local share. We believe that in those instances provision should be made for 100 percent funding or for borrowing the local share at reduced interest rates and without necessity for commitment of general obligation bonds.

3. Title I, Section 3 (e).-We respectfully suggest that the word "top" be added before the word "priority" on line 16 of page 3 of H.R. 5376.

4. Title I, Section 4 (a).-Under PL 87-658, proposed or planned expenditures (exclusive of federal funds) by state or local governments for all its capital improvements projects had to be increased by an amount approximately equal to non-federal funds required to be made available for approved public works projects. In light of the limited capacities of most local governments in eligible areas, the proposed amendment to this requirement is far more realistic and will permit broader involvement by those local governments with the greatest need.

Mr. Chairman, Georgia has benefited greatly from its involvement in accelerated public works projects, as the attached list shows. But much more needs to be done if we are just to catch up and keep pace with our current needs and responsibilities. We urge this Committee, Mr. Chairman, to favorably report H.R. 5376.