This report, an update of an earlier report from the Advisory Commission on Intergovernmental Relations, presents a review of urban America and its governmental capabilities. Chapters focus on: (1) urban America today (major aspects of the urban problem, changes in urban problems, changes in the perception of urban problem solving, and programs for meeting urban needs); (2) overcoming the urban fiscal problem (the plight of central cities, Federal action, State action, and the development of an effective and equitable state and local revenue system); (3) improving services in urban America; (4) restructuring local governments (the Federal role, and others); (5) solving the problem of metropolitan areas (urban development, urbanization, building requirements, urban development planning and land use regulation, and urban development policy framework); and (6) intergovernmental problems and strategies for the future. The report concludes that urban society is worth saving. The connection between the high standard of living in America and the urban setting of most American activity today is not coincidental. What is called for is a series of actions which will produce, at the end, a revitalized American urban scene. The Federal system already has begun to change. yet the need for urban statemanship at all levels remains great. (Author)