Texas, Office of the Governor, Division of Budget and Planning:

An Inventory of Records at the Texas State Archives, 1972-1981

Agency History

HUD and the Texas Office of the Governor, Division of Planning Coordination

The federal Department of Housing and Urban Development (HUD) operates several grant programs available to state, regional, and local governments. One such program was the Comprehensive Planning Assistance Grant, also known as the 701 Planning and Management Assistance Program. This was a federal grant-in-aid program for problem solving at the state, regional and local levels. Grants were given for improving state and community planning and management in the areas of housing and land use. The ratio of funds was 2/3 federal, 1/3 state or local funds. Grants were available to the following organizations: states, for state and substate activities; states, for providing planning and management assistance to substate recipients; large cities; urban counties; metropolitan clearinghouses; councils of government; Indian tribes; and other governmental applicants with special planning needs.

By 1971, the State of Texas was receiving 701 program grants, which were largely assigned to smaller localities for use, usually to regional councils of government and municipalities. In 1973, the State was offered the opportunity to take over the responsibilities for and administration of the 701 program for Texas. In 1974, the Texas Association of Regional Councils appointed a special 701 task force to assist the Division of Planning Coordination in developing a plan for the administration of the 701 program. The State signed an agreement with HUD in 1975. An ultimate goal of this arrangement was to consolidate the 701 program with the State's Planning and Management Assistance Program. Several state agencies were used, through interagency contracts, to carry out various responsibilities of the 701 program. For example, the Texas Department of Community Affairs conducted activities relative to the State Housing Plan and areawide housing plans.

Grant applications from substate recipients were made directly to HUD, who would notify the State of the pending grant. The State then prepared a funding plan for the recipient, carried out an evaluation of the recipient and its program, negotiated a proposed work program, reviewed guidelines for State review of substate planning assistance requests, and determined the grant amount.

The Department of Housing and Urban Development had several requirements of substate recipients as well as the State--both as a recipient and administrator of funds for substate recipients. Substate recipients were required to maintain an ongoing comprehensive planning process, which included established procedures and policies, institutional arrangements, and the preparation of an Overall Program Design (OPD). The OPD covered a minimum of three years and was updated annually. It identified the major planning and management objectives, including those not to be assisted by the State of Texas and HUD. The recipient prepared a comprehensive work plan which included the OPD, State Assistance Application, 701 Application, financial information, personnel information, assurances, and supporting documents. This plan had to include a housing element and land use element. Substate recipients were also required to: integrate existing land use policies and planning activities with the proposed plan; avoid duplication of land use planning activities with other land use programs; identify housing needs; develop policies, strategies, and proposals for areawide housing goals and objectives; and encourage citizen involvement in the planning process. The State was required to develop an ongoing planning process, including an OPD; develop policies, strategies, proposals, and evaluation techniques for state housing goals and objectives; develop a policy or plan for geographic allocation of State controlled housing assistance; integrate existing land use policies and planning activities with the proposed plan; develop policies, procedures, and requirements for administration of substate assistance; avoid duplication of land use planning activities with other land use programs; encourage citizen involvement in the planning process; and closely review requests for 701 funds, eliminating unnecessary or uneconomical activities. HUD required the preparation of six-month progress reports and completion reports of grant-funded activities, termed projects, by both substate recipients and the State.

FmHA and the Texas Governor's Office, Division of Budget and Planning

On November 8, 1978, the Power Plant and Industrial Fuel Use Act was enacted by the federal government--Public Law 95-620. It was designed to stimulate production of alternate domestic fuels. Realizing increased fuel production could have adverse social and economic impacts on communities, the Energy Impacted Area Development Assistance Program was established, administered by the Farmers Home Administration (FmHA). The purpose of this program was to provide assistance for housing needs and public services and utilities to areas impacted by increased coal and uranium production, processing, or transportation. Grants, known as 601 grants, were given for growth management planning and site acquisition and development. Grants were made to states, councils of local governments, and local governments. In Texas, applications were primarily made by regional councils of government, some by counties, for local community projects.

Prior to receiving assistance, the affected area had to be recommended by the Governor as an energy impacted area. After receiving this designation from the U.S. Department of Energy, applicants sent their applications to the Governor's Budget and Planning Office. This office reviewed their plans and projects. The Interagency Task Force prioritized the projects on a statewide list. This list was central to the State Investment Strategy, an accumulation of required information for FmHA prepared by the Budget and Planning Office. The Strategy contained the list of prioritized projects, earliest possible starting date for projects, methods of coordinating assistance with other state and federal development programs, assistance needed not provided by 601 or other federal funds, differential between available financial resources and cost of needed housing and public services and facilities, and Governor's recommended level of 601 funding for each project. After the applicant's plans were approved by the Governor, the plans and State Investment Strategy were submitted to the Farmers Home Administration for approval.

The Budget and Planning Office received some guidance for the program through a state level Interagency Task Force. This body was established in May, 1978--prior to the law's enactment, to provide overall guidance for the conduct of the program and development of the State Investment Strategy. The Task Force was composed of two individuals from the Budget and Planning Office, one from the Railroad Commission, one from the Texas Industrial Commission, and one from the Department of Community Affairs. Texas Natural Energy and Resources Advisory Council was later asked to join the Task Force. Objectives of the Task Force were to provide information to local communities, evaluate additional sources of funds, and maintain contact with individuals in the field of energy development and within the Governor's Office. The Task Force discussed and prioritized grant applications based on information in the application and other information available on local economic conditions. It met periodically to review progress on the program, revise the priority list to incorporate new applications, and modify and update the priority list.

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Scope and Contents

These records reflect the planning activities of the Texas Office of the Governor's Division of Planning Coordination, later Budget and Planning Office, with federal grant programs from the Department of Housing and Urban Development (HUD), and Farmers Home Administration (FmHA) from 1972 to 1981. The records are arranged into two groups--Records Relating to HUD Programs and Records Relating to FmHA Programs, and consist of administrative files and project reports.

To prepare this inventory, the described materials were cursorily reviewed to delineate series, to confirm the accuracy of contents lists, to provide an estimate of dates covered, and to determine record types.

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Restrictions

Restrictions on Access

None.

Restrictions on Use

None.

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Related Material

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Administrative Information

Preferred Citation

(Identify the item and cite the series), Records, Division of Budget and Planning, Texas Office of the Governor. Archives and Information Services Division, Texas State Library and Archives Commission.

Accession Information

Accession number: 1989/055

These records were transferred to the Archives and Information Services Division of the Texas State Library and Archives Commission by the Records Management Division of the Texas State Library to the Archives Division on December 6, 1988.

Processing Information

Laura K. Saegert, February, 1989

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Detailed Description of the Collection

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