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Revenue Sharing - Meeting with the President, May 1, 1976
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Revenue Sharing - Meeting with the President, May 1, 1976
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The original documents are located in Box 31, folder "Revenue Sharing - Meeting with the President, May 1, 1976" of the James M. Cannon Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 31 of the James M. Cannon Files at the Gerald R. Ford Presidential Library MEETING WITH THE PRESIDENT ON REVENUE SHARING Saturday, May 1, 1976 Oval Office Hold for Discumons Wonday 5/3/76 FORD LIBRARY & GENALD MORANDUM THE WHITE HOUSE WASHINGTON April 27, 1976 for meeting Set MEMORANDUM FOR JIM CANNON FROM PAUL MYER SUBJECT: Dick Nathan Letter on General Revenue Sharing Attached for your information is a copy of the Nathan letter we discussed in your office this afternoon. I have not previously made this letter available. Attachment The Brookings Institution 1775 MASSACHUSETTS AVENUE N.W. / WASHINGTON D.C. 20036/CABLES: BROOKINST/ TELEPHONE: (202) 797-6000 Governmental Studies Program March 31, 1976 Mr. Paul J. Myer Office of Congressional Relations The White House Washington, D.C. Dear Paul: I am glad we had an opportunity to get together last week. You suggested that it would be useful for me to commit to paper my ideas on one subject we discussed--namely, the time period and permanence of funding for revenue sharing. As you know, I have virtually made a career out of revenue sharing. And like many others, I have been of the opinion for quite some time that the basic idea of revenue sharing requires that there be long-term financing for the program, preferably a permanent appropriation, such as for Social Security. There are, of course, good reasons for taking this position: (1) State and local officers will thus be able to plan ahead for the use of shared revenue and (2) the program will be more secure on this basis, as opposed to being subject to frequent congressional appropriations. I still regard these as important points. However, based on our research, I have increasingly come to take a more middle ground position on this issue. One of the most important purposes of revenue sharing is that it stands as a symbol of a desire to place more reliance on State and local government and commensurately less on the Federal Government. In order for this essential purpose to be achieved, we need to make certain that the program is visible. The fact that governors, mayors, et.al. have been so much in evidence in Washington this year making the case for revenue sharing and decentralization is healthy and desirable. Every time legislation is considered for the revenue sharing program, it is again--along with the decentralization theme--brought forcefully (at least in relative terms for domestic policy) to national attention. The same effects are felt, based on our research, at the State and local level; decentralization issues, as a result of current legislative efforts on revenue sharing, are in the news and on people's minds. In a large sense, this is how I think one should gauge the decentraliza- tion effects of revenue sharing, that is, according to the extent to - 2 - March 31, 1976 which it impacts on budgetary decision-making processes at both the national and state-local levels. In so doing, it signals to people to look to city halls and the county court house to a greater extent to meet public needs and not to expect them to necessarily and invariably be framed in terms of old-style, particularistic federal aid instruments. We know from our research that the older a revenue sharing grant becomes, the more likely it is simply to be subsumed in the budget and treated "just like any other revenue." However, if the revenue sharing policy decision is regularly up for review, and, in fact, if there is an issue to be joined about its continuation, the tendency, both for decisions processes and the budget, is to give greater prominence to this explicit decision to shift power in our political system. In sum, the visibility of revenue sharing reinforces one of its important aims--getting people to focus on the role of State and local governments in American federalism. For this reason, I now feel that Senator Bill Brock's bill and others for a permanent program may actually be the wrong approach. (Again, I would not have said this three years ago.) Having made this point, I would nevertheless guard against overstating it. All of this leads me to urge a middle ground. I personally think it would be desirable, for example, to have a long authorization for revenue sharing, such as in the President's proposal for 5-3/4 years, if possible, with appropriations, say, every two years. I am not as happy about annual appropriations, even with one year advance-funded. But the essential point, as I said on Friday, is that my current thinking runs in the direction of seeking a compromise, rather than hanging tough on the principle of a multi-year (5 years or more) appropriation. Sincerely, alick Richard P. Nathan Senior Fellow THE WHITE HOUSE WASHINGTON April 28, 1976 MEMORANDUM FOR JACK MARSH MAX FRIEDERSDORF JIM CANNON ED SCHMULTS FROM PAUL MYER SUBJECT: Background for General Revenue Sharing Meeting Wednesday, April 28 4:30 p.m. The House Government Operations Committee will soon begin consideration of the General Revenue Sharing renewal bill reported today by the Fountain Subcommittee. Although the Subcommittee did not endorse the President's proposal, the reported bill is not far from his position. Attached for your review is a comparative analysis of the current program, the President's proposal and the Subcommittee bill. (Attachment 1) The following issues are relevant to our discussion of a legislative strategy from this point: 1. Length of Program and Level of Funding President's Proposal: 5 3/4 years; total fund- ing of $39.5 billion, including $150 million annual increase. GERALD Subcommittee Bill: 3 3/4 years; total funding of $24.9 billion, with no annual increase (funds frozen at 1976 level of $6.65 billion). Comment: 3 3/4 years represents a compromise after Democratic attempt to get only 1 3/4-year period. PIGS support compromise in light of fund- ing level problems; longer extension obtainable in the Senate. All attempts to increase funding, including those advanced by those wanting to change allocation formula to help big cities, were rejected. -2- $150 million increment provision is not worth a fight; PIGS want greater increase; liberal Demo- crats want major formula change or add-on funds for distribution on basis of need. Unless a substantial annual increase or other "sweetener" is advocated, it is advisable to hold Subcommittee position in House. 2. Method of Funding President's Proposal: Continue present com- bined authorization-appropriation approach. Subcommittee Bill: Establish "entitlement" financing approach. Comment: Clearly the most controversial and sensitive issue. The entitlement financing approach adopted by the Subcommittee was developed as a realistic approach to the highly controversial ques- tion of how General Revenue Sharing should be funded. It does not substantially modify the basic tenets of the revenue sharing concept, but it does answer the argument of those Members who have charged that the existing funding provision by-passes the traditional Congressional appropriations process and circumvents the newly-established Budget Act procedures designed to control long-term spending actions (e.g. Brooks, Mahon). See Attachment 2 for a detailed explanation. The entitlement financing approach is desirable because -- a. its impact is identical to the President's proposal; b. it does not by-pass appropriations and is consistent with the new Budget Act; C. it negates the need for a special rule waiving points of order; and d. its chances of adoption are far greater than the combined authorization- appropriations approach and would place us in a favorable position in the Senate. -3- 3. Civil Rights President's Proposal: Clarifies the Secretary's authority to invoke one or more remedies where a reci- pient government is found to have used revenue sharing funds in a discriminatory fashion. This includes the authority to withhold all or a portion of entitlement funds due to the government and to require repayment of funds expended in a discriminatory fashion. Subcommittee Bill: Discrimination prohibited on basis of handicapped status, age and religion in addition to race, color, sex, and national origin under all State and local programs except where recipient can prove "with clear and convincing evi- dence" that program was not funded, directly or indirectly, with GRS monies. Extensive hearing and compliance procedures are spelled out requiring time limits for investigations, compliance, administrative procedures and court actions. Private civil suits are authorized after the exhaustion of administrative remedies. Comment: There has been a substantial amount of criticism, much of it legitimate, about the failure to enforce the nondiscrimination provision of the current Act. The Subcommittee bill contains a greatly strengthened provision, originally viewed as a compro- mise which would neutralize the issue. Civil rights community now opposed, particularly to restriction on right of private action, but is a reflection of their total opposition to the program; most moderate and conservative Members may feel that Subcommittee provision goes too far. Effort should be made to return to a position more consistent with, but stronger than, the President's proposal (e.g. a variation of Senate countercyclical bill nondiscrimination provision). All other issues and points of difference are either relatively technical in nature or do not involve substantial policy decisions and may be worked out in Committee or can be easily revised in the Senate (e.g. citizen participation and reporting requirements). -4- Recommendation: The Subcommittee bill, with some modi- fication, should be viewed as the best vehicle available to insure House passage of a General Revenue Sharing bill which maintains the basic program concept and will enable us to work for Senate adoption and eventual enactment of a bill consistent with the President's objectives. Attachments #1 BASIC PROVISIONS CURRENT LAW PRESIDENT'S PROPOSAL SUBCOMMITTEE DRAFT BILL (P. L. 92-512) H. R. 6558 Funding level $30.2 billion to be distributed $39.5 billion to dis- $24.9 billion to be distributed Jan. 1, 1977 Jan. 1, 1972 to Dec. 31, 1976. tributed Jan. 1, 1977 to Sept. 30, 1980. to Sept. 30, 1982. Funding 5 year trust fund. 5 3/4 year trust fund. 3 3/4 year entitlement. (Note: an entitlement Mechanism (Funds authorized and (Funds authorized and program is not the same as annual appropriations. appropriated for entire appropriated for entire Under the entitlement provision, the Appropria - period.) period.) tions Committee would only have jurisdiction if the amount authorized by the legislative committee (Government Operations) is greater than that approved by the Budget Committee. Under such circumstances the Appropriations Committee would have 15 days in which to adjust the legislative committee's action. If they do not, the dis- crepancy must be reconciled on the Floor.) Annual $150 million per year. No change. No increment. Funds are frozen at the 1976 Increment level of $6.65 billion. Eligibility All units of general purpose No change. To participate local government recipients must: government are eligible to 1) Be defined as a unit of general purpose participate in the program. government by the Census Bureau. 2) Impose taxes or receive intergovernmental transfer payments. 3) Provides "substantially" for at least two of the following services: police, courts and corrections, fire protection, health services, social services, recreation, libraries, sewage disposal and water supply, solid waste dis- posal, zoning or land-use planning, pollution abatement, roads, mass transit, and education. 4) Spend at least 10 percent of their total ex- penditure for two of the services or provide four of the listed services. Formula Money allocated by formula based No change. No change. Provisions on population, per capita income and tax effort. States receive 1/3 of funds No change. No change. distributed; local governments receive 2/3. Sets maximum entitlement to local Raised to 175 percent Retains 145 percent maximum limitation. government at 145 percent of the by 6 percentage points average statewide per capita per entitlement period entitlement. in five steps. Sets minimum entitlement to local No change. No change. government at 20 percent of the average statewide per capita entitlement. No local government to receive No change. No change. revenue sharing funds in excess of 50 percent of its own source non-school revenues plus any intergovernmental transfer. Any general purpose government No change. No change. due to receive less than $200 annually will not participate in the program. Citizen Recipient governments must publish Same, but Secretary of a) Recipient governments must hold public hear- Participation Planned and Actual Use Reports in the Treasury may autho- ings on the Proposed Use Report at least 7 and Public newspapers of general circulation. rize other methods to days before the submission of the report to ORS. Hearing publicize use information b) Recipient governments must hold a second hear- tion where such are ing, at least 7 days before the adoption of appropriate. their budget, showing the relationship of GRS funds to functional items in their budget. c) Thirty days before the second hearing, the govern- ment must publish a summary of its budget and Proposed Use Report in a general circulation newspaper. d) Hearings must be at a place and time that "permits and encourages citizen participation." No requirement for public hearing Requires assurance that or other means of public partici- there will be a public pation in use of funds. hearing or other method by which the public may participate in deciding how the funds are to be spent. Allocation of GRS monies must be in No change. No change. accordance with State and local law. Reporting Law prescribes reports on amounts No change. Proposed Use Report must include comparative data Requirements and purposes of planned and actual use of GRS funds for the current and the two previous expenditures. entitlement periods and must compare them to items in budget. Proposed Use Reports must specify whether the use is for new or expanded program, a continuation of activity or tax stabilization or reduction. Actual Use Reports must be filed with ORS. Any differences between planned and actual uses must be explained. Budget documents and Use Reports must be available at principal government office and libraries. Budget summary must be published in newpaper 30 days after adoption with explanation of changes between the Proposed and Actual Use Reports. Anti- Law contains strong anti- Clarifies the Secre- Discrimination prohibited on basis of handicapped Discrimination discrimination requirement where tary's authority to in- status, age and religion in addition to race, Provisions activity is funded with revenue voke one or more reme- color, sex, and national origin under all State sharing. Secretary's enforce- dies where a recipient and local programs except where recipient can ment powers are stated in general government is found to prove "with clear and convincing evidence" that terms: to refer matter to Attorney have used revenue shar- program was not funded, directly or indirectly, General, to exercise powers and ing funds in a discrim- with GRS monies. functions provided by Title VI inatory fashion. This of Civil Rights Act of 1964, or includes the authority Extensive hearing and compliance procedures are to take such other action as may to withhold all or a spelled out requiring time limits for investiga- be provided by law. portion of entitlement tions, compliance, administrative procedures, and funds due to the govern- court actions. ment and to require re- payment of funds expended Private civil suits are authorized after the ex- in a discriminatory haustion of administrative remedies. fashion. Matching Revenue sharing funds may not be No change. Matching prohibition eliminated. Prohibition utilized to meet Federal grant matching requirements. Davis-Bacon Davis-Bacon (minimum-wage) applies No change. No change. Provision to construction projects funded 25 percent or more with revenue sharing monies. Priority Local governments may use funds for No change. Priorities eliminated. Categories any capital projects but only for oper- ating and maintenance expenses of pro- grams in eight priority expenditure categories (public safety, environmen- tal protection, public transportation, health, recreation, libraries, social services for the poor or aged, and financial administration.) Congressional No general review of program Secretary of the Treasury Secretary of Treasury must make an annual report Review is required. to report to Congress two on program. Comptroller General is to review years before expiration ORS compliance activities. date. State States must maintain level of No change. States must maintain level of funds transferred Maintenance fund transfers to localities to localities as of Fiscal '76. of Effort as of Fiscal '72. Auditing Recipient governments must No change. Annual "independent" audit required of all State Requirements follow standard fiscal and local finances except where the cost of such accounting and auditing audits is disproportionately large in relation procedures. Federal govern- to GRS funds. ment is permitted to audit any recipient. Anti-lobbying No provision. No provision. No recipient governments may use, directly or in- Provisions directly, any GRS funds for "lobbying or to influence any legislation regarding the Act." # 2 THE WHITE HOUSE WASHINGTON April 9, 1976 MEMORANDUM FOR Paul PAUL O'NEILL FROM PAUL MYER SUBJECT: Entitlement Financing for General Revenue Sharing The funding provision of the current Act and the President's proposed legislation to extend General Revenue Sharing providing combined authorization- appropriation of funds over a long-term period has generated considerable opposition among many Mem- bers who otherwise support the revenue sharing concept and those Members who strongly oppose the program's continuation for other reasons. After rejecting the President's proposal, the House Sub- committee had tentatively adopted a short-term extension of the program's authorization only, making its funding subject to the annual appropri- ations process. The Subcommittee has now reversed that decision, voting to authorize continuation of General Revenue Sharing as a 3 3/4-year entitlement program. The entitlement financing amendment adopted by the Subcommittee was developed as a realistic approach to the highly controversial question of how General Revenue Sharing should be funded. The amendment does not substantially modify the basic tenets of the revenue sharing concept, but it does answer the argument of those Members who have charged that the existing funding provision by-passes the traditional Congressional appropriations process and circumvents the newly-established Budget Act procedures designed to control long-term spending'actions. -2- One of the principle objectives of the Budget Act was to bring so-called backdoor spending within the scope of the appropriations process. The Budget Act (section 401) defines three types of "new spending authority" and sets forth their relation- ship to the appropriations process in order to promote more comprehensive and consistent control over spending actions. The Budget Act draws dis- tinctions between these types of spending legislation and establishes special, procedures for their consider- ation. With respect to"new contract authority and borrowing authority legislation, such bills must contain a provision that funding is effective only to the extent or in such amounts as are provided in appropriations acts. However, the Budget Act established different procedures with respect to the third type of new spending authority, entitlement financing. As defined in the Budget Act (section 401 (c) (2) (c)), entitlement legislation provides temporary or perma- nent authority to make payments (including loans and grants), the budget authority for which is not provided for in advance by appropriation acts, to any person or government if, under the provision of law contain- ing such authority, the Federal Government is obligated to make such payments to persons or governments who meet the requirements established by such law. In recognition of the need to provide for long-term funding of certain Federal programs, the Budget Act established specific procedures for consideration of legislation providing entitlement authority (section 401 (b) (1), (2) and (3) ) First, since legislation providing entitlement authority could not become effective prior to the start of the new fiscal year, the Budget Act provides that such legislation would be fully subject to the reconcilia- tion process. Second, legislation providing entitlement authority would be referred to the respective Appropriations Committees if it would generate new budget authority in excess of the allocation made under the latest Congressional Budget Resolution for the new fiscal -3- year. Such legislation would be referred for no more than 15 days, with the Appropriations Committee auto- matically discharged from consideration if it has not reported during this period. The Appropriations Com- mittee may report the legislation with an amendment limiting the total amount of new entitlement authority; however, their jurisdiction extends only to the cost of the program involved and not to substantive changes. Further, entitlement financing does not violate either the jurisdiction of the Appropriations Committee or Rule XXI of the House. Appropriations Committee juris- diction was specifically rejected by the House-Senate Conference Committee on the Budget Act (the House- passed bill would have made all new entitlements effective only as provided in appropriation acts), except to the extent that entitlement authority is contained in annual appropriations acts (and therefore consistent with Rule XXI). Not only is legislation providing entitlement authority clearly recognized as a form of spending and within those provisions of the Budget Act designed to control long-term spending actions, the Budget Act specifically contemplates the application of the entitlement financing approach to legislation extending the General Revenue Sharing program. In fact, when stipulating certain exceptions to the Budget Act provisions for consideration of entitlement programs (e.g., Social Security), Section 401 (d) (2) specifically provides that the current Act authorizing General Revenue Sharing payments or legislation extending it could also be exempted from these procedures if Congress were so inclined. Based upon this analysis, it appears that the entitle- ment financing approach for General Revenue Sharing represents both an acceptable legislative and substantive resolution of the funding method issue. The approach is consistent with the Budget Act and the President's objective. While subject to the provisions of the Budget Act and the annual appropriations process, in practice, since these are entitlement payments which the Federal Government is obligated to make to eligible -4- recipients, the annual process is pro forma and the results would be nearly identical to the funding provisions of the current Act and the President's renewal bill. Attached per your request is a copy of the entitle- ment financing amendment adopted by the Subcommittee on Thursday, April 8. As I noted in our phone con- versation, it does not address the level of funding or duration of the program issues. These matters are still open and will, be considered in full com- mittee. Attachment CC: Jim Cannon Max Friedersdorf Art Quern JAW Brooks 225-6565 4/29/76 Big Library Bldy - 1) R-S- out of Anbcountts watchey 1201 Expite ulu to went on Tusdey of wed fundi a 1 repeat on Frilly FORD is LIBRARY frush Hoston - fat w) Amprowah 1 drom't want & went man a TWA 1 A can Horton - start was a Two day Key Kings set book & can in the Pictu Even THE WHITE HOUSE WASHINGTON April 30, 1976 STAFF BRIEFING ON GENERAL REVENUE SHARING RENEWAL LEGISLATIVE SITUATION Saturday, May 1, 1976 The Oval Office From: Jim Cannon June I. PURPOSE To brief the President on the status of General Revenue Sharing renewal legislation, and to get Presidential guidance on strategy as the bill is taken up by the full Committee. II. BACKGROUND, PARTICIPANTS & PRESS PLAN A. Background: On Tuesday, May 4, the House Government Operations Committee will begin consideration of the General Revenue Sharing bill reported by the Fountain Subcommittee. Although the Subcommittee did not endorse the President's proposal, the reported bill includes most of the major elements proposed by the President. Congressmen Frank Horton and Jack Wydler, ranking minority members of the Committee and Subcommittee respectively, need guidance on your strategy for the Committee sessions next week and the floor battles to follow. Four major issues will dominate full Commit tee consideration: 1. length of program and level of funding; 2. method of funding; 3. civil rights; and 4. formula revision. Tab A is a summary of these points. B. Legislative Assessment: There has been a 36.5% turnover in the House since 1972 when General Revenue Sharing was enacted. The key House vote in 1972 was on a motion to adopt a "closed rule" for consideration of the General Revenue Sharing bill. In 1972, the motion passed by a vote of 223-185 (R 113-57; D 110-128). Today, 63% of the Members (141 Members) who supported General Revenue Sharing on this critical vote are still serving, while nearly 70% (126 Members) of those opposed remain Members. There are 157 new Members since 1972 (103 D; 54 R). Tab B is a statistical display of the key rule vote. The opposition represented a coalition of liberal Democrats opposed to "no strings" spending, and conservative Democrats and Republicans who opposed the program for a variety of philosophical reasons including increased spending and the funding method which by-passed the traditional appropriations process. With respect to the latter, current Members of the Appropriations Committee voted 31-15 (R 8-7; D 23-8) against General Revenue Sharing on this vote. Members of the new Budget Committee voted 14-9 (R 4-4; D 10-5) against. Tab C is a list of all current Republican Members who voted "wrong" on this rule vote in 1972. The nature of the opposition in the 94th Congress closely parallels that expressed in 1972, reflecting the same philosophical differences over the control and distribution of Federal funds and appropriate Congressional procedures. C. Participants: See Tab D. D. Press Plan: To be announced. TAB A -- REVIEW OF MAJOR ISSUES 1. Length of Program and Level of Funding President's Proposal: 5 3/4 years; total funding of $39.5 billion, including $150 million annual increase. Subcommittee Bill: 3 3/4 years; total funding of $24.9 billion, with no annual increase (funds frozen at 1976 level of $6.65 billion). Comment: Committee Democrats may attempt to get a 1 3/4-year extension. Governors and Mayors are willing to accept a 3 3/4-year compromise. A longer extension may be obtainable in the Senate. All attempts to increase funding, including those advanced by Members wanting to change the formula, were rejected. No serious effort is anticipated to increase the level of funding, except to the extent the formula is modified. 2. Method of Funding President's Proposal: Continue the present combined authorization-appropriation approach. Subcommittee Bill: Establishes an "entitlement" financing approach. Comment: The entitlement financing adopted by the Subcommittee was developed as a realistic approach to the highly controversial question of how General Revenue Sharing should be funded. It does not substantially modify the basic tenets of the revenue sharing concept, but it does answer the argument of influential Members such as George Mahon and Jack Brooks who have charged that the existing funding provision bypasses the traditional Congressional appropriations process and circumvents the newly-established Budget Act procedures designed to control long-term spending actions. 3. Civil Rights President's Proposal: Retains current nondiscrimination requirement, but clarifies the Secretary's authority to withhold all or a portion of entitlement funds, 2 to require repayments, and terminate eligibility where revenue sharing funds have been expended in a discriminatory fashion. Subcommittee Bill: Expands nondiscrimination requirements to cover all State and local programs except where recipient can prove "with clear and convincing evidence" that the program was not funded, directly or indirectly, with revenue sharing funds. Extensive hearing and compliance procedures are spelled out requiring time limits for investigations, compliance, administrative procedures and court actions. Private civil suits are authorized only after the exhaustion of administrative remedies. Comment: There has been substantial criticism of the enforcement record under the current Act. The subcommittee provision was drafted as a compromise which the Members hoped would neutralize the issue and gain some liberal support. It now appears that the civil rights community and their Congressional allies will not support the bill without more drastic changes, and the Subcommittee provision may go too far for most moderate and conservative Members. An effort will be made to return to a position more consistent with, but possibly stronger than, the President's proposal. 4. Formula Provisions President's Proposal: Retains current formula with a slight increase in upper constraint. Subcommittee Bill: Retains current formula without change, but attempts to tighten eligibility criteria. Comment: Liberal Democrats will renew their attempts to modify formula or add a new provision for the distribution of increased payments to "needy" governments. TAB B -- STATISTICAL DISPLAY House vote on motion to end debate and adopt "closed rule" for consideration of H. R. 14370. Motion agreed to, 223-185, June 21, 1972. A yea vote was in support of General Revenue Sharing. Republicans Democrats Total 1972 1976 1972 1976 1972 1976 YEA 113 57 110 84 223 141 NAY 57 32 128 94 185 126 NOT VOTING 8 2 16 6 24 8 TOTAL, 92nd 178 91 254 184 432* 267 Congress "NEW" MEMBERS -- 54 I 103 -- 157 TOTAL, 94th -- 145 -- 287 --- 432* Congress * 2 vacancies, Speaker not voting. TAB C -- ALL CURRENT REPUBLICAN MEMBERS VOTING AGAINST GENERAL REVENUE SHARING ON KEY VOTE IN 1972 Republicans Andrews Hutchinson Archer Lujan Ashbrook Michel Broyhill Myers (Ind.) Burke Rhodes Carter Robinson Cederberg Rousselot Clancy Ruppe Clawson Schneebeli Collins Sebelius Crane Skubitz Derwinski Spense Devine Snyder Edwards Talcott Findley Vander Jagt Frey Young (Fla.) TAB D -- PARTICIPANTS The Vice President Jack Marsh, Counsellor to the President James Cannon, Assistant to the President James Lynn, Director of the Office of Management and Budget Ed Schmults, Deputy Counsel to the President Paul O'Neill, Deputy Director of the Office of Management and Budget Charles Leppert, Deputy Assistant to the President Robert Wolthuis, Deputy to the Assistant to the President Paul Myer, Assistant Director, Domestic Council Richard Albrecht, General Counsel, Department of the Treasury [5/1/76] DRAFT STATEMENT BY THE PRESIDENT ON GENERAL REVENUE SHARING I have today received from my staff a report on the status of the General Revenue Sharing legislation now before the Congress. I am gratified that the Government Operations Committee is proceeding with a mark-up of this legislation which is important to every State and local government and therefore important to every citizen in the country. It is essential that the Congress enact this legislation as soon as possible. More than a year ago I proposed an extension of the current General Revenue Sharing program to provide $39.8 billion over the next 5 3/4 years. I remain committed to that proposal. I shall be following closely the actions of the House Government Operations Committee and subsequent actions by the Congress. [5/1/76] DRAFT STATEMENT BY THE PRESIDENT ON GENERAL REVENUE SHARING I have today received from my staff a report on the status of the General Revenue Sharing legislation now before the Congress. I am gratified that the Government Operations Committee is proceeding with a mark-up of this legislation which is important to every State and local government and therefore important to every citizen in the country. It is essential that the Congress enact this legislation as soon as possible. More than a year ago I proposed an extension of the current General Revenue Sharing program to provide $39.8 billion over the next 5 3/4 years. I remain committed to that proposal. I shall be following closely the actions of the House Government Operations Committee and subsequent actions by the Congress. [5/1/76] Optional strategies: 1. Reaffirm publicly, and privately to the Republican leaders, your sommitment to your proposal before the Congress. 2. Tell the Regublican leaders that they should get the best bill they can out of the Committee, and then the House, and improve it in the Senate. 3. Reaffirm publicly your commitment to your proposal, and state that you are going to follow closely Congressional action on revenue sharing. [5/1/76] AGENDA 1. Opening Remarks -- Cannon a. House Government Operations Committee to begin mark-up Tuesday b. Marsh and others met earlier this week, would like to briefly review with you the Subcommittee bill and our assessment of the legislative situation C. Staff and Republican Members need your guidance 2. Review Subcommittee Bill -- Cannon, Myer (O'Neill, Schmults) 3. Leiglsative Assessment -- Marsh, Cannon (Myer) 4. Discussion of Possible Actions a. Review Presidential options, statement (Cannon) b. Phone calls to Members (by President, Vice President, Secretary Simon, Senior Staff) Horton Rhodes Randall Wydler Michel Preyer Fountain Cederberg Hicks Fuqua Wright Levitas Steiger Thone C. Agenda item at GOP Leadership meeting with President (Wednesday, May 5) R - S myer $/3/76 P calls to Mode michel Smon / Buhus, conviter Acigien T Those / tyrn- Barrhurg counths Jenenen - - mils wright FORD is LIBRARY 078830 Cannon Rosenthal - Raw - Jenny work Faley ? (ddnite) Jones - oxposed Worken (ouni 12) wahon opprew Teague - appoar Ewis - on mir me Price (?) Roberts -onfored Wilman - (okm72) Reuss (on mith Adem - opprev Dregs- ) Perhnis - opposed Mangan. - ? (on m7r) Burh opposed Huys oxpored Holey oppened Staepper amposed Pits Rodio Sulvan oppow Henderson oppored