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    "ocrText": "THE WHITE HOUSE\nWASHINGTON\nAugust 6, 1995\nMEMORANDUM FOR LAURA TYSON\nFROM:\nPAUL DIMOND\nSUBJECT:\nDOLE WELFARE BILL WILL KILL PRESIDENTS PROPOSAL\nFOR SKILL GRANTS\nCC:\nGENE SPERLING\nBRUCE REED\nBackground. In December, the President proposed a Middle Class Bill of Rights: putting\nSkill Grants in the hands of Dislocated Workers so they can make their own choices is a key\nelement in this proposal to implement the President's national economic plan. In May, in a\nmajor victory for the President on a bi-partisan 29-5 vote, the House Education Committee\npassed a CAREERS bill that would require the states to implement this key Skill Grant\nfeature. On Saturday, however, Senator Dole filed a welfare bill that threatens to kill Skill\nGrants: it proposes to give governors complete discretion over a substantially reduced block\ngrant for training, including using virtually the entire block to finance welfare reform.\nIf the Dole welfare bill passes in this form in the Senate this week, the Republican\nLeadership will likely move on the House Floor to strike Skill Grants and substitute similar\ndiscretion in the states. Instead of a CAREERS bill putting Skill Grants directly in the hands\nof working families, the Congress will then likely put a welfare bill on the President's desk\nthat seeks to substitute Dole's campaign commitment to devolve discretion to the states over\nwelfare reform and education and training for youth and adults.\nTiming. The Senate cloture vote on the Defense Bill is scheduled for noon on Monday, and\nconsideration of the welfare bill will begin shortly thereafter. By Wednesday night, the\nMajority Leader plans to schedule a cloture vote on his Welfare Bill so that a final vote will\nbe assured by Friday. Senator Dole's decision to merge federal training into his welfare bill\nmeans that White House decision-makers, and the President, must focus immediately on how\nto respond to the now interrelated issues of (1) Skill Grants for working families, (2)\nreforming welfare for single-parent families that don't now work, and (3) the appropriate\ncourse for balancing the budget and meeting national priorities.\nOPTIONS. The range of options include:\n1. Do Nothing, Say Nothing. A sole focus on welfare reform hides the larger budget\nissues and will obscure two national commitments by the President: to help hard-working\nAmericans who are laid off get Skill Grants to find new and better jobs; help high school"
}