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"Wliile there are many complex forces worldng against rational land 

 use in the coastal zone, two fimdamental motivations control: The 

 property tax structure and the short-run economic advantages of 

 dredging and filling wetlands. 



In general, the character of land use especially in the metropolitan 

 areas, is shaped by the tax structures of local governments which 

 depend on the property tax for their revenue base. 



Considering the minimal revenues available to local governments 

 in the face of their many needs, I can understand their problem. 



Much of it results from the fact that the Federal Government has 

 simply sapped the supply of money from incomes and forced the local 

 governments to depend more heavily upon the development of land 

 as its major source of revenue. Tliis, in turn, has often penalized the 

 wise use of land by encouraging local governments to zone just to 

 increase revenues. 



The low, flat wetlands of the estuaries provide a cheap source of 

 land for building. The short-run advantages of dredging and filling 

 these wetlands for development are often at the expense of the natural 

 functioning of the estuarine system. 



The local governments' "handle" on land use has essentially been 

 zoning. 



The powers of zoning, and other forms of private land use regula- 

 tion, have historically been delegated by the States to the local com- 

 munities, counties, and cities. 



And they now jealously guard these prerogatives. 



Consequently, given the motivation of local governments to in- 

 crease the value of land for tax purposes, the zoning authority exer- 

 cised by local governments over these lands quite often aid and en- 

 courage its rapid and misdirected development. 



The Federal Government's role in preserving scenic, recreational, 

 and wildlife areas has emphasized outright acquisition — an expensive 

 process — especially given the fact that land values typically increase 

 so rapidly — between the time purchase of the area is authorized — 

 and the time the funds are ultimately made available. 



I want to stress that I am not saying all zoning is bad or that 

 acquisition is necessarily ineffective. 



What I am saying is that neither is enough — and something new is 

 imperative. 



Consequently, the purpose of this administration's legislation is 

 not simply to impose Federal regulation, nor is it simply to provide 

 more money — for more planning — just for the sake of more planning. 

 Simply put, it is to encourage and assist the State governments of the 

 coastal zone to effectively manage their land and water resources. 



The emphasis of our legislation is upon State management of these 

 resources. 



States cover a wide enough geographical area for effective regula- 

 tion of competing uses. 



The States possess traditional legal authority over wetland altera- 

 tion. 



Further, the States possess inherent powers over zoning, and oui" 

 State governments have existing agencies already equipped to deal 

 with a number of activities in the coastal zone. 



