America has long been the wealthiest nation in the world.  Now it is time we became the healthiest nation in the world.

The fifth great goal is to strengthen and to renew our State and local governments.

As we approach our 200th anniversary in 1976, we remember that this Nation launched itself as a loose confederation of separate States, without a workable central government.  At that time, the mark of its leaders’ vision was that they quickly saw the need to balance the separate powers of the States with a government of central powers.

And so they gave us a constitution of balanced powers, of unity with diversity—­and so clear was their vision that it survives today as the oldest written constitution still in force in the world.

For almost two centuries since—­and dramatically in the 1930’s—­at those great turning points when the question has been between the States and the Federal Government, that question has been resolved in favor of a stronger central Federal Government.

During this time the Nation grew and the Nation prospered.  But one thing history tells us is that no great movement goes in the same direction forever.  Nations change, they adapt, or they slowly die.

The time has now come in America to reverse the flow of power and resources from the States and communities to Washington, and start power and resources flowing back from Washington to the States and communities and, more important, to the people all across America.

The time has come for a new partnership between the Federal Government and the States and localities—­a partnership in which we entrust the States and localities with a larger share of the Nation’s responsibilities, and in which we share our Federal revenues with them so that they can meet those responsibilities.

To achieve this goal, I propose to the Congress tonight that we enact a plan of revenue sharing historic in scope and bold in concept.

All across America today, States and cities are confronted with a financial crisis.  Some have already been cutting back on essential services—–­for example, just recently San Diego and Cleveland cut back on trash collections.  Most are caught between the prospects of bankruptcy on the one hand and adding to an already crushing tax burden on the other.

As one indication of the rising costs of local government, I discovered the other day that my home town of Whittier, California—­which has a population of 67,000—­has a larger budget for 1971 than the entire Federal budget was in 1791.

Now the time has come to take a new direction, and once again to introduce a new and more creative balance to our approach to government.

So let us put the money where the needs are.  And let us put the power to spend it where the people are.