The T. V. A. and Inter-Governmental Relations

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Abstract
The development of the public power program in the Tennessee Valley area has had marked effects on inter-governmental relations, in some cases creating new relationships and in other cases modifying those already existing. Many of these relations concern coöperative activities of the T. V. A. and the state and local governments, and the results of their joint endeavors have done much to expand and improve governmental services. In its relations with the local governments, the Authority has consistently followed the policy of depending on their coöperative efforts to achieve the social and economic development of the Valley without attempting to impose its will on them. “The rôles of the states, and of cities, counties, districts, and voluntary associations within the states, are enhanced, not diminished, in importance, by this recognition of interest and jurisdiction. Coöperation, not destructive competition; Federal responsibility in Federal and interstate matters, with local initiative and self-reliance in matters of a local nature—these are policies by which the development of the Valley is being and should continue to be guided.” These principles have not always been appreciated by the local units, however, and their occasional unwillingness to assume responsibilities or to fulfil obligations to each other have presented problems that have tended to hinder the most successful conduct of the public ownership program. In fact, the readjustments in inter-governmental relations that have sometimes been necessitated, especially in connection with the power program and the resulting loss of taxes, have in some instances been accompanied by painful and significant friction.

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