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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13496 Folder ID Number: 13496-006 Folder Title: Six Months of the Bush Administration 7/89 [2] Stack: Row: Section: Shelf: Position: G 25 6 4 2 Document No. 05691955 WHITE HOUSE STAFFING MEMORANDUM DATE: 7/25/89 ACTION/CONCURRENCE/COMMENT DUE BY: 12:00 NOON, 7/26/89 SUBJECT: SIX MONTHS OF THE BUSH ADMINISTRATION ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN Bennett CARD Boskin CICCONI Petersmeyer DEMAREST Rogers FITZWATER Winston GRAY Pintarton HAGIN REMARKS: Please provide your comments/recommendations directly to Chriss Winston (Rm. 122, Ext. 2930) with an info copy to my office no later than 12:00 NOON, WEDNESDAY, JULY 26, 1989. Please note that TWO DOCUMENTS are attached. Thank you. RESPONSE: LO : Ld 29 7nr 68 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 1 ((Grant)) July 21, 1989 Draft two A:sixmonth BUILDING A BETTER AMERICA SIX MONTHS OF THE BUSH ADMINISTRATION SUMMARY As the Bush Administration passes the six-month mark, Americans know that the President has set the agenda on a number of fronts domestically -- from the environment and education to the fight against drugs and crime. The economy is strong, with the current economic expansion continuing to set new records. Meanwhile, America is standing tall in the international arena, after President Bush's leadership at two multilateral summits paved the way for greater understanding among the allies and improved relations with the Soviet Union and the Eastern Bloc nations. KEEPING THE ECONOMY STRONG Record expansion: During the current economic expansion -- now in its 79th month as of June -- nearly 20 million jobs have been created and the unemployment rate has fallen to levels not seen in 15 years. Income levels continue to set records, and industrial output is nearly double that of Al-Sammore 5873 2 Europe. Consumer price inflation has remained under 5 X percent for the past 7 years. Budget agreement: The President has put forth a budget which restrains overall growth of spending and meets the Gramm- Rudman-Hollings targets -- with no new taxes in fiscal year 1990. The President and Congress announced on April 14 a budget plan to reduce the estimated fiscal year 1990 deficit by about $64 billion below fiscal year 1989. Savings and Loans: The Administration's proposal to solve the savings and loan crisis was passed by the House and Senate and is currently in conference. Third World debt: The Administration has taken the lead in finding a way to reduce the debt burden of developing countries. With the Administration's encouragement, the IMF se-Sammane and World Bank have set aside funds to aid debt reduction. The X5873 recent agreement between Merico and creditors, which provides the of the country Administration with 13 billion for a year in debt relief, attests to the viability plan resolving the LDC debt problem. Capital gains tax cut: The President has sent to the Holen 43178 Congress a proposal which would re-establish a capital gains and (or) that differential ^ will encourage capital formation, saving, and ^ job formation. Holen Excessive X5873 Minimum wage: The President, by vetoing the ^ across-the-board increase in the minimum wage proposed by Congress, preserved 3 job opportunities for the disadvantaged and blunted the adverse economic impact such a move would have had. International Trade: The Bush Administration successfully broke a stalemate in international trade talks and advanced its proposal to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports. SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE "Europe Whole and Free": In a series of major speeches in April and May, the President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies. Poland and Hungary: The President signalled his strong support for the people of Hungary and Poland as they move toward more democratic reforms -- by visiting those nations and offering political and moral support as well as economic and trade incentives. Economic Summit: The unity of the industrial democracies was demonstrated at the Paris Economic Summit, as President Bush 4 took the lead in encouraging our allies to support Polish and Hungarian economic reforms. "Beyond Containment": The President has responded to great changes in the Soviet Union with his policy to move "beyond containment" by integrating the Soviet Union into the world order. Arms Control/NATO Summit: In arms control, the pace of negotiations with the Soviet Union has accelerated, with new American initiatives on Conventional Forces in Europe (which the President unveiled at the NATO Summit), on banning chemical weapons, and on strategic arms reduction. Soviet Relations: The US-Soviet dialogue on conflicts in regions of the Third World has resumed intensively, and a US-Soviet dialogue has begun on a new range of global problems which require global cooperation, such as terrorism, the environment, and narcotics. China: In response to the suppression of the democratic movement in China, the President signalled that we cannot condone repression while he worked to preserve the basic elements of a strategically important relationship. 5 Central American accord: The President and Congressional leaders agreed on March 24 on a bipartisan strategy for peace and democracy in Central America. INVESTING IN OUR FUTURE Education: The President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives :on merit and per x4864 magnet schools, alternative certification of teachers, excellence awards for teachers, emergency grants to help urban schools to fight drugs, increased new funding for endowments at Murr X 486' Historically Black Colleges, and a National Science Scholars program. Natural Gas Deregulation: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas. Clean Air Act revisions: On July 21, President Bush transmitted to the Congress the first revisions to the Clean Air Act since 1977. His legislation is designed to 6 drastically reduce three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. Hazardous waste: The President announced he will be seeking new legislation to ban all exports of hazardous waste except where an agreement already exists with the receiving country to provide for its safe handling. Ozone depletion: The President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available, in order to prevent further damage to the earth's protective ozone layer. Clean water: The EPA has started a tracking system for medical wastes and the Justice Department has started a task force to prosecute these abuses -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. Wetlands: The President is committed to "no net loss of wetlands" and is directing his agencies to work toward that goal. He has also proposed $206 million in his budget to expand our parks and wildlife refuges. 7 Combatting Violent Crime: President Bush transmitted to Violent number Congress The Comprehensive Crime Control Act of 1989 to X486 combat violent crime. Measures will augment enforcement and prosecution, strengthen current law, control certain semi- automatic weapons, and expand prison capacity. Fighting Drug Abuse: The Administration is requesting $6.4 Hole x312 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. Drug Czar: The Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for and more prisons, \providing support in enforcement Ja and Hab providing assistance to local treatment efforts. x3120 Space: The President announced a three-step commitment to establish America's preeminence in space -- Space Station Freedom, a permanent presence on the Moon, and a manned mission to Mars. Public Housing: The Bush Administration is working to make public housing drug free, to protect the rights of the vast majority of decent, law-abiding public housing residents. 8 WORKING FOR A KINDER, GENTLER AMERICA Child Care: The President has transmitted to the Congress a child care package, the Working Family Child Care Assistance Act of 1989 which provides a new refundable child care tax age credit of up to $1000 per child under four, for low Land Holan 1 moderate] income working families. This legislation also will X5178 ^ + make the existing Child and Dependent Care Tax Credit or refundable, and does not discriminate against religious- [and] family-based child care. Head Start: The President has also transmitted legislation to the Congress which would increase the FY 1990 authorization for Head Start by $250 million; this will pay for enrollment of up to 95,000 more four-year-olds in the program. is must National Service: The President spearheaded a movement to x4864 1 has encourage national service and announced the formation his intention to proprse establishment foundation called the Points of Light Initiative to identify, enlarge and recreate those community service initiatives which are working. Welfare Reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family the next 9 in Support Act of 1988, as a step [toward] welfare reform. The Holan Administration is proposing to spend $3.7 billion over the to Act x5178 X next five years implementing the JOBS program. The changes will help reduce the number of individuals on welfare. Medicaid: On April 18, the Administration forwarded to Congress proposed legislation to make federal Medicaid programs better serve pregnant women, infants and children. Homelessness: President Bush has called for fully funding the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise Zones: President Bush asked Congress to enact labor and capital-based incentives -- through urban mur V4864 enterprise zones -- to create jobs and entrepreneurial activity in our most distressed communities. Campaign Finance Reform: The President's comprehensive campaign finance proposal is designed to lessen the power of special economic interests and restore competition to American Congressional elections. 10 Ethics: President Bush sent comprehensive ethics legislation to the Congress on April 12th, and he issued an Executive Order announcing ethical principles for the conduct of executive branch employees. Whistleblower Protection: On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989." This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. Civil Rights: The Administration has taken a number of actions to protect the civil rights of all Americans, including several court actions in key civil rights cases. # # # BUILDING A BETTER AMERICA SIX MONTHS OF THE BUSH ADMINISTRATION KEEPING THE ECONOMY STRONG Maintaining the current expansion with low inflation is the key to improving standards of living, increasing job opportunities for all Americans, and increasing investment in productive capacity. Economic performance during this expansion has been very good, and the policies proposed by the Bush Administration are designed to preserve this strong record. Record peacetime expansion: The current expansion reached 79 months in June. Job creation: Nearly 20 million new jobs have been created during this expansion, and the unemployment rate fell to levels not seen in 15 years. During this decade, America has created more new jobs than Japan and the nations of Western Europe combined. Record income: Real per capita disposable personal income -- personal income after taxes and inflation -- has risen 19 percent during this expansion. Real median family income -- the level of income after inflation which splits the family 2 income distribution in half -- set a new record in 1987, the last year for which data are available. se- Sammary x5873 + Industrial output: During this expansion, American compare 40 industrial output has grown almost 41 percent [compared [with can't inc. overall economic growth of 29 percent. This is] almost 6NP double Europe's growth rate in industrial output. Higher national saving and investment: During the first new copy NINE will be send Eight] months of fiscal year 1989, the Federal Government on this, after GHP revision, budget deficit is less than during the same period in the pur conversation previous fiscal year. Partly due to the discipline of GRH, with Chriss the Federal deficit has declined from 5.4 percent of GNP in Winston fiscal year 1985 to about 2.9 percent this fiscal year. The personal saving rate has risen to 5.4 percent in the first quarter of 1989 from its recent low of 2.2 percent in the second quarter of 1987. Business fixed investment as a percent of real GNP has risen from a recent low of 11.1 percent in the first quarter of 1987 to 12.3 percent in the first quarter of 1989. Inflation under control: Consumer price inflation has remained under 5 percent for the past 7 years, and the recent slowing in economic growth to a sustainable rate will lessen price pressures in the near future. The 3 Administration and the Federal Reserve share the goal of ultimately achieving price stability. ACTION BY THE ADMINISTRATION: Presenting a budget: The President put forth a budget which addresses our fundamental obligations for the protection of national security and support of the needy, while providing sufficient funds to advance high-priority initiatives. The President's budget restrains overall growth of spending and meets the Gramm-Rudman-Hollings targets -- with no new taxes in fiscal year 1990. Reaching a budget agreement with Congress: The President and Congress announced on April 14 a budget plan to reduce the estimated fiscal year 1990 deficit by about $64 billion plan called for reducing the below fiscal year 1989. The deficit will be reduced to Andrew X4630 Anderson Bry X4630 $99.4 billion, [as required by the Gramm-Rudman-Hollings law. land, in so in doing; meet the targets specified in This is the first budget agreement reached before the start of the budget year and not framed in the context of crisis. Savings and Loan reform: The Administration proposal to solve the savings and loan crisis [was passed acted by the House has been on Marr X 4864 and Senate and is currently in conference. The proposal included provisions to: 4 Itale x3120 -- Assure the financial integrity of deposit insurance by temporarily raising the annual premium rate for both commercial banks and S&Ls. S&Ls Hab -- Resolve the status of existing insolvent banks) in an x3,20 orderly fashion. Itale Itale x3120 capital x3120 -- Improve supervisory control by bringing S&Ls up to the same standards applied to commercial banks. -- Enhance the enforcement of bank fraud provisions. Solution of the international debt problem: The Administration has taken the lead in finding a way to reduce the debt burden of developing countries. With the Administration's encouragement, the IMF and World Bank have set aside funds to aid debt reduction in conjunction with their ongoing programs to promote investment, growth, and the return of flight capital to these countries. [see suggested addition mp.2] Capital gains tax rate cut: The re-establishment of a capital gains differential will encourage capital formation, saving, and job formation. The President has sent to the Congress a proposal which includes: -- A 45 percent capital gains exclusion for qualified capital gains, making the maximum capital gains tax rate 15 percent. -- A phased-in increase in the qualifying holding period from one year to three years. 5 -- An exemption from the capital gains tax for families earning under $20,000. Minimum wage proposal: The President believes in keeping job opportunities available for youth and for those seeking to Excessive enter the economic mainstream. The ,across-the-board increase in the minimum wage which was proposed by Congress Halm would have had an adverse economic impact and cut job x5178 Accordingly, the President opportunities drastically. Because of this The vetoed the bill passed by Congress. International Trade: The Administration is forcefully promoting the opening of world markets. It successfully broke a stalemate in international trade talks and advanced its proposal to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports. Together these efforts should greatly expand opportunities for U.S. exports. Agricultural initiatives: The Administration has announced additional advance deficiency payments of 10 percent available to producers of wheat, feed grains, rice and upland cotton. In addition, a top-level Working Group on Rural Development was established by the President to focus on an action-oriented agenda. 6 O Clean Air: The Administration transmitted to the Congress on July 21 a Clean Air Act which will harness the power of the marketplace in achieving the goals of the act in the most cost-effective manner possible. SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE President Bush is committed to a strong American role of world leadership and sees in present global trends an unprecedented opportunity for strengthening both world peace and the cause of freedom. He has taken the initiative to seize that opportunity. ACTION BY THE ADMINISTRATION: O "Europe Whole and Free": In a series of major speeches in April and May, the President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies. -- Western Europe: As the European Community heads toward a single market in 1992, and also develops its political institutions and a more coordinated approach to foreign policy, the President has pledged his support for close cooperation with the EC and its member states. We see the resurgence of Western Europe 7 as a triumph of Western values and principles. We welcome its success, confident that a mature partnership will serve mutual interests. -- Eastern Europe: As Poland and Hungary take unprecedented steps of reform, permitting first steps toward pluralism, democracy, and market economic policies, the United States has signaled its strong support. Offering political and moral support as well as economic incentives, the President proposed: -- Poland: Following up on the program the President announced earlier this year in Hamtramck, Michigan, he called for action to declare Poland a beneficiary country under the U.S. Generalized System of Preferences. OPIC will be authorized to operate in Poland, and the US is proposing a private business agreement that will promote contacts between the private sectors of both countries. The President will ask Congress to provide a $100 million fund to help capitalize the Polish private sector, and encourage the World Bank to move ahead with new loans to help Polish agriculture and industry. Finally, he will ask Congress for $15 million in a cooperative venture with Poland to help fight air and water pollution in Krakow. He has encouraged our friends in the Paris Club to provide more liberalized terms in rescheduling Polish debt. 8 -- Hungary: The President will ask the Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private sector. Pending the passage of new emigration legislation in the Hungarian Parliament, the President will inform Congress that Hungary has been released from the restrictions of the Jackson-Vanik Amendments, allowing more liberal access to the American market. The President also offered access to the Generalized System of Preferences. He called for OPIC to operate in Hungary, and called for greater scientific, technical, educational and cultural exchanges between the US and Hungary. The President said that the US will open an American House in Budapest, and will seek to establish an International Environmental Center for Central and Eastern Europe, in Budapest as well. Finally, he announced that the Peace Corps would operate in Hungary -- the first time in a European country. -- The Economic Summit in Paris: The mission of the President's historic visit to Poland and Hungary in early July, and of the President's successful effort at the Paris Economic Summit was to promote concerted actions in areas of mutual concern among the industrial democracies. The unity of the industrial democracies was demonstrated, as they dealt with a variety of issues from the economy to East-West strategies to 9 global environmental issues. Similarly, the solidarity of the democracies was demonstrated earlier at the NATO summit, as the North Atlantic allies dealt with arms control initiatives. -- Throughout the trip, the President declared that we face a historic opportunity to lower the barriers that have kept Europe divided. The Cold War began over Eastern Europe, and if it is to end, it must end there as well. "Beyond Containment": Seeing a historic process of change also in the Soviet Union, the President has declared his intention to move beyond the successful policy of Hole containment of Soviet power to a new policy whose goals is x5178 integrating the Soviet Union into the world community as a constructive partner. Constructive changes so far in Soviet policies -- in human rights, economic reforms, and settlement of some international conflicts -- need to be encouraged and broadened. The United States will be ready to respond to such further developments. Already: -- The US-Soviet dialogue on conflicts in regions of the Third World has resumed intensively, with regular meetings at the level of Assistant Secretary of State. -- A US-Soviet dialogue has begun on a new range of global problems which require global cooperation, such as terrorism, the environment, and narcotics. 10 -- In arms control, the pace of negotiations has accelerated, with new American initiatives on Conventional Forces in Europe (which the President unveiled at the NATO Summit), on banning chemical weapons, and on strategic arms reduction. China: In response to the tragic suppression of the democratic movement in China, the President ordered the suspension of all government-to-government sales and commercial exports of weapons, suspension of visits between US and Chinese military leaders, sympathetic review of requests by Chinese students in the United States to extend their stay, and review of other aspects of US-PRC bilateral relations. The President's policy is to signal that we cannot condone repression, but also to preserve the basic elements of a relationship that has itself played a major part in China's recent policy of reform and openness as well as being of enormous strategic importance. Bipartisan Accord on Central America: The President and Congressional leaders agreed on March 24 on a bipartisan strategy for peace and democracy in Central America: -- Regional peace: The President and Congress agreed that the region's democracies deserve our support, that Nicaragua's subversion of its neighbors must end, and 11 that Soviet support for violence and subversion in the hemisphere must also end. -- Humanitarian aid: Congress agreed to support the Administration's request for continued humanitarian assistance for the Nicaraguan Democratic Resistance at current levels through the elections in Nicaragua scheduled for February 1990. -- Democracy: The Communist Sandinistas are being put to the test next February -- to permit a real democratic contest for political power, fulfilling the promises of democratic pluralism that they have made (and broken) so often before. Middle East Peace Process: The Administration is supporting the Middle East parties in efforts to launch a peace process. Our approach is based on the concept of Palestinian elections in the occupied territories, which we believe can be a step toward a comprehensive peace settlement that assures Israel's security and the legitimate political rights of the Palestinians. Initiative on Third World Debt: The President's initiative to strengthen the international strategy on Third World debt has already received broad support from both industrial and developing countries. The approach is designed to promote sustained growth in developing countries by: 12 -- Emphasizing sound market-oriented economic policies in Holen debtor countries, particularly measureSto promote investment and repatriation of flight capital; -- Increasing the focus on debt and debt service reduction to complement new lending by commercial banks; -- Using resources from the World Bank and IMF to catalyze voluntary debt and debt service reduction by the commercial banks. GATT: In the Uruguay Round of GATT trade negotiations, progress has been made toward a multilateral agreement reducing trade barriers to exports. Bilateral Meetings: The President has met with a total of XXX foreign leaders while in office, including 18 bilateral meetings during the trip to Emperor Hirohito's funeral, XX during the NATO Summit, and XX on the trip to Poland, Hungary, the Netherlands, and the Economic Summit. INVESTING IN OUR FUTURE EDUCATION The President's actions to improve education are guided by four key principles: that excellence and success in education should be recognized and rewarded; that federal funding should be targeted to those who need it most; that choice and flexibility - 13 - for educators, parents and students -- are important to educational reform and to achieving excellence; and finally, that greater accountability is needed in the education system to assure that students are actually receiving the highest quality education. ACTION BY THE ADMINISTRATION: The President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989 which includes seven initiatives: -- The Presidential Merit Schools program -- to reward schools that have made substantial progress in raising students' educational achievement, creating a safe and drug-free school environment, and reducing the drop-out rate. -- A new Magnet Schools of Excellence program -- to support the establishment, expansion or enhancement of magnet schools, increasing parental choice and improving quality education. -- The Alternative Certification of Teachers and Principals program -- to assist States interested in broadening the pool of talent from which to recruit teachers and principals. 14 -- President's Awards for Excellence in Education -- to be awarded to public and private school teachers in every state who meet the highest standards of excellence. -- Drug-free Schools Urban Emergency Grants -- to provide special assistance to selected urban school districts that are disproportionately affected by drug trafficking and abuse. -- A National Science Scholars program -- to provide college scholarships to high school seniors who have excelled in the sciences and mathematics. -- Additional Funding Authorisation for Endowment Matching Grants at Historically Black Colleges and Universities to strengthen HBCUs by building endowments, an especially effective way to create financial strength and long-term security. THE ENVIRONMENT President Bush, a long-time environmentalist, has taken strong action to protect the environment. He is working shoulder-to-shoulder with Interior Secretary Lujan, Energy Secretary Watkins, and EPA Administrator Reilly on a number of fronts. This is a cliche, and the President is their boss. Damus X5044 15 ACTION BY THE ADMINISTRATION: Natural Gas Decontrol: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas. Clean Air legislation: President Bush transmitted to the Congress a sweeping program to ensure clean air for all Americans. The President's plan, transmitted to Congress on July 21, 1989, calls for the first revisions to the Clean Air Act since 1977 and is designed to curb three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. -- Acid Rain: Sulfur dioxide emissions that cause acid rain will be cut in half, by ten million tons, and nitrogen oxide levels cut by two million tons -- by the end of this century. Companies will be allowed to trade credits among themselves for reductions they make, so that they can decide how to bring aggregate emissions down as cost-effectively as possible. -- Urban Air Pollution: By employing a mix of federal measures and state initiatives, this legislation will sharply cut air pollution in our cities. The federal measures alone will cut hydrocarbon emissions -- which contribute to urban ozone -- virtually in half. 16 Currently, 81 cities don't meet Federal air quality standards. This legislation will bring clean air to all but 25 cities by 1995 -- and within 20 years, even to Los Angeles, Houston and New York. In the nine urban areas with the greatest smog problems, smog will be cut through alternative fuels and clean-fueled vehicles. The President is calling Habox X5178 for the phased-in introduction of a half a million clean-fueled vehicles in 1995, building up to a million in 1997, through 2007. To the maximum extent feasible, automobile and fuel companies will be allowed to trade reduction credits among themselves. -- Toxic Air Emissions: All categories of airborne toxic chemicals should be cut by 75 percent by the year 2000. In its first phase, this initiative should eliminate about three-quarters of the needless deaths from cancer that are suspected to have been caused by toxic industrial air emissions. Until now, because of an unworkable law, the EPA has been able to regulate only seven of the 280 known air toxics. These reforms will allow EPA to do its job better, and will apply the most advanced industrial technology available to control these airborne poisons. The legislation promises certifiable progress in 17 regulating sources of toxic air emissions on a set schedule. Alaskan oil spill: A Cabinet-level team was sent to assess the Alaskan oil spill, and a joint federal-state resource recovery team was convened. The National Transportation Safety Board is investigating the accident itself. Exxon has accepted responsibility for paying for the cleanup, and for employing local civilian personnel necessary to control further damage. EPA Administrator Reilly is coordinating the long-range planning to restore the environment of Prince William Sound, and the President has ordered a review of existing contingency plans for accidents such as this. -- The President has set up a special task force to address environmental concerns about oil and gas drilling off the coasts of California and Florida. -- The Administration transmitted to the Congress a comprehensive oil spill liability bill, to XXX (call 11ab x3120 Transoportation}] Cleaning up hazardous wastes: The President announced he will be seeking new legislation to give the United States Government authority to ban all exports of hazardous waste except where an agreement exists with the receiving country providing for the safe handling and management of those wastes. which merges the four Existing oil pollution funds into a unified and comprehensive program, oil establishes an oil pollution liability and compensation system financed by the lary, industry, and provides protection from foreign tanker smills 18 Also, Secretary of Energy Watkins has put forth a plan of action to identify and prioritize clean up of defense and civilian radioactive waste. Superfund: The President is reinvigorating the Superfund hazardous waste clean-up program by directing EPA to take a number of actions, including more aggressive action to force private parties to clean up sites, stepped-up cost recovery, and better use of existing emergency cleanup authorities. EPA is also now finishing a priority review of Superfund to improve its operation. Ozone depletion: The President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available, in order to prevent further damage to the earth's protective ozone layer. Clean water and coastlines: The EPA has started a tracking system for medical wastes and the Justice Department has started a task force to prosecute these abuses -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. 19 Wetlands: The President is committed to "no net loss of wetlands" and is directing his agencies to work toward that goal. He has also proposed $206 million in his budget to expand our parks and wildlife refuges. COMBATTING VIOLENT CRIME The President is working to strengthen the nation's criminal justice system and the Federal, state, and local law enforcement partnership. Four principles underlie the goals of our criminal justice system and the means for accomplishing them: First, to protect citizens and their property; to hold those who commit violent crimes accountable for their actions; to have as the objective of our criminal justice system the swift and certain apprehension, prosecution and incarceration of those who break the law; and finally, to ensure a sustained, cooperative effort by Federal, Holen State, and local law enforcement authorities. ACTION BY THE ADMINISTRATION: On May 15, 1989, President Bush transmitted to Congress The Violent Comprehensive Crime Control Act of 1989 to combat violent crime. Elements of the legislation include: number x4864 20 -- Strengthening Current Laws: The President is calling on Congress to double the mandatory minimum penalties -- from five years to ten years in Federal prison -- for the use of semi-automatic weapons in violent crimes or drug felonies. In addition, the Attorney General has been directed to advise America's prosecutors to end plea bargaining for violent Federal firearms offenses. President Bush called on Congress to enact the steps necessary to implement the death penalty for the most serious Federal crimes, and urged state Governors to match these Federal initiatives -- new mandatory sentencing, tougher rules on plea bargaining, and implementing the death penalty -- in the States. -- Controlling Certain Semi-Automatic Weapons: The President also announced that the Administration has made permanent the temporary suspension on the importation of any semi-automatic weapons which fail to meet the criteria specified in the Gun Control Act of 1968; he also called for the closing of loopholes which allow access to such guns by certain classes of mum X4864 criminals. The President [introduced legislation] proposed prohibiting the importation, manufacture, sale or transfer of gun magazines of more than 15 rounds. -- Augmenting Enforcement: The President has directed the Attorney General and the Treasury Secretary, working 21 together with state and local authorities, to launch a comprehensive, coordinated offensive against America's most violent criminals. President Bush requested funding for hiring 825 new Federal agents and staff -- 375 at the Bureau of Alcohol, Tobacco and Firearms; 300 at the FBI; and 150 Deputy U.S. Marshals. This offensive, including State Holen x5178 and local enforcement authorities, will target violent criminals and repeat offenders. -- Enhancing Prosecution: The President proposed increased funds for the U.S. Attorneys Offices to support 1,600 new prosecutors and staff, and increased funds for the Justice Department Criminal Division to support 168 new positions, to handle drug cases, weapons offenses and other priority matters. -- Expanding Prison Capacity: The President proposed an additional $1 billion for Federal prison construction, bringing the total FY 1990 budget to over $1.5 billion. This will add 24,000 new Federal prison beds to the current 31,000 beds an increase of nearly 80% 1tal x3120 FIGHTING DRUG ABUSE We have begun a new war on drugs in this country. The President believes a four-pronged approach is key: education, rehabilitation, interdiction and enforcement. The policy of 22 this Administration is "zero tolerance." No amount of illegal drug use is acceptable. This means dealing with both supply and demand. ACTION BY THE ADMINISTRATION: Hale .4 x3120 Budget: The Administration is requesting $6 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. Education: The Administration is requesting nearly $1.1 billion for education and prevention efforts. This is a 16 percent increase over 1989, and includes funding for ongoing programs and new initiatives. Rehabilitation: Funding for drug abuse treatment will be increased 18 percent. The Administration is proposing over $700 million to expand the nation's capacity to provide of ? treatment, particularly to the indigent, disadvantaged Holen youth, and expectant mothers. X5178 Interdiction and enforcement: The Administration is 6 proposing over $4. 1 billion for law enforcement programs in Hale 2 x3120 1990, a 10 percent increase over 1989. This constitutes t about 70 percent of President Bush's proposed drug budget. Hale (note: Operation money Polar X5178 cap launding, fights Openation concern snow Cap 23 cry endication: Substantial increases are requested in funding to strengthen inspection, interdiction, intelligence efforts and crop Snow Hale eradication programs, such as Operation [Polar] Cap, a x3,20 federally led effort which broke up a $1.2 billion drug money-laundering operation. The President strongly supports the death penalty for drug kingpins who commit drug-related murders, and will appoint judges who will strongly enforce the drug penalty laws. Public housing: The Bush Administration is working to make public housing drug free, to protect the rights of the vast majority of decent, law-abiding public housing residents. The Department of Housing and Urban Development has acted: -- To modify its lease and grievance procedures to facilitate eviction of those involved in drug related criminal activity; -- To make drug use and trafficking a lease violation subject to eviction proceedings; -- To target federal assistance to anti-drug security measures; -- To revoke federal housing subsidies from those dealing in drugs; -- To involve the private and voluntary sectors in efforts to rid public housing of drugs and give residents, especially young people, a stake in their communities and their futures. i Janet facilitating additional Drug Enforcement Administration and Bureau yes of Alcohol, Tobacco and Firearms Administration agents, and Coordinating x3120 with U.S. Marshals and local police for the tracking and apprehension of drug fugitives. 24 In addition, the Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, providing FBI support in enforcement, and providing the assistance of the National Institute on Drug Abuse to local treatment efforts. The Department of Education will provide the District with 50 percent more funds for drug prevention programs in city schools. The Department of Labor will provide support for employee assistance programs and work with the business community to Increase job training for youth.] WORKING FOR A KINDER, GENTLER AMERICA CHILD CARE The changing nature of American society heightens the need for quality, affordable, accessible child care. President Bush wants to put choice in the hands of parents so that they -- not government -- have the power to select the best and safest environment for their children. 25 ACTION BY THE ADMINISTRATION: Child care: The President has transmitted to the Congress a child care package, the Working Family Child Care Assistance Act of 1989 which: -- Provides a new refundable child care tax credit of up age to $1000 per child under 1 four, for low [and moderate Hola income working families. 5178 -- Makes the existing Child and Dependent Care Tax Credit + refundable. -- Does not discriminate against religious- [and] family- based child care. The President has directed Secretary of Labor Dole to [study the market for liability insurance to determine [if liability Holen issues impair child care. Whether barriers x5178 to securing Head Start: The President has also transmitted legislation to the Congress which would increase the FY 1990 authorization for Head Start by $250 million; this will pay for enrollment of up to 95,000 more four-year-olds in the program. 26 NATIONAL SERVICE vision of a thousand points of light is to help The President's strategy for overcoming the disintegration Damus build a batter America. - x5044 of communities across America a not through a federal government Mollin x3060 program - butna nationwide service movement of has three facets) Dames through This means First, to issue a call to action; second, to identify, enlarge x5044 and recreate what is working; and third, to discover and encourage new leaders. ACTION BY THE ADMINISTRATION: The Call to Action: -- President Bush called on all Americans and all American institutions, large and small, to make service of central value in their daily life and work; -- All heads of business and professional firms to include community service among the factors considered in making hiring, compensation and promotion decisions; -- Newspapers, magazines, radio and television stations, cable systems, and other media institutions to identify service opportunities, spotlight successful service initiatives and profile outstanding community leaders regularly; -- All state and local education boards to uphold the value of service and to encourage students, faculty and personnel to serve others; 27 : College and university presidents to recognize the value of community service in considering applicants, and to encourage and uphold the value of community service; : and not-for-profit service organizations to build the capacity to absorb increasing numbers of volunteers in purposeful roles. Identifying, Enlarging, and Recreating What is Working: The President announced the formation of a foundation called the his intention to Propose es tablishment Points of Light Initiative, of which he will serve as mum Designed x4814 Honorary Chairman. Formed to identify and build upon what is working, the Foundation will be a magnet for the best ideas and brightest programs in community service. The Administration will ask Congress for $25 million annually to support this Initiative, which will, in turn, seek matching funds from the private sector. The President has also encouraged all governors and mayors nationwide to join the movement by forming State and local Points of Light working groups composed of outstanding leaders. Through a Foundation initiative called the ServNet Daman 5044 + Project, professional firms, corporations, unions, schools, religious, civic and not for profit groups will be asked to donate the services of some of their most talented and promising people for a period of time Peer-to-peer working groups will be formed to among schools, corporations, and other organizations unions, -044 28 bring examples of successful initiatives and providing training, technical assistance and other support to enable other institutions to devise similar initiatives. Dama -- Another Foundation initiative the ServLink Project, X5044 X will help improve existing methods of matching would-be volunteers with purposeful service opportunities. It [ServLink] will stimulate the development through private Pannet 5044 sector resources of "technology links" between those who wish to serve and those needing service in the inquirer's own community. -- The Foundation will also recognize successful community initiatives and outstanding leaders through two new Presidential Awards: -- The National Service Youth Leadership Awards will be given each year to individuals. -- The President's Build a Community Awards will honor those people and institutions who have worked together to rebuild families or to revitalize communities. 29 WELFARE REFORM Holan moved aggressively to implement the X5178 Family Support Act of 1988, which includes The Administration has developed a major new education and job training program to help recipients of Aid to Families with Dependent Children move off welfare and become economically self- sufficient. ACTION BY THE ADMINISTRATION: Holm x5178 (see confusing. insert Regulations neth page mentioned as drafted, we first bullets bullet are are JOBS rega.) Welfare reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988. The proposed rules are designed to: : Target job training assistance to those who are most likely to benefit and who are most at risk for long- Hoe X5178 term welfare dependency. -- Provide maximum level of flexibility to AFDC parents in obtaining the type of child care that best suits their needs, consistent with the Administration's legislative proposals on child care. o JOBS Program: The Administration is proposing to spend $3.3 billion over the next five years implementing the JOBS program. The changes will pay benefits in the future by reducing the number of individuals on welfare. It is estimated that 138,000 families will be able to leave (note: not many for much money. The number should mister.) Visert for P. - Holan X5178 Implementing the Family Support Act of 1988 - The Administration is proposing to spend $3.6 billion over the next five years for the JOBS program to provide education, training, and other employment-related activities for families on AFDC. Open-ended funding for child care and Medicaid for the first year after a family works its way off the welfare rolls will become available as well. - After thorough consultation with the States and other interested groups, the Administration issued proposed rules on April 18 to implement the JOBS program. The regulations aim to: - target available funds toward activities for those most at risk of long-term welfare dependency; - provide States with flexibility to tailor their programs to the needs of their welfare recipients; - provide flexibility to AFDC parents in making the kinds of necessary child care arrangements that best suit their needs. 1 30 welfare rolls over the next five years as a result of this program. EXPANSION OF MEDICAID The Administration is committed to health care for the disadvantaged, calling for full funding of Medicaid, $37.6 billion for FY 1990, an increase of $3.3 billion, or 9.6 percent over the FY 1989 level. ACTION BY THE ADMINISTRATION: Expanding Medicaid: On April 18, the Administration forwarded to Congress proposed legislation to make federal programs better serve pregnant women, infants and children. The legislation would expand the population Medicaid serves, making Medicaid available to 1.9 million more women when they became pregnant. The legislation would: -- Increase by 374,000 the number of pregnant women and children eligible for Medicaid. -- Foster greater participation in Medicaid by eligible pregnant women by providing services to pregnant women who are presumed eligible for Medicaid before a formal eligibility determination is made; and by requiring States to operate outreach programs in areas of high infant mortality. 31 I Entitle all children under age 6 who are receiving Food Stamps to Medicaid coverage for immunizations. -- Make the Federal match rate for State administration expenses a uniform 50 percent by gradually reducing special administrative match rates ranging from 75 to 100 percent. The savings that would result would allow the legislative eligibility changes proposed by the President to be implemented within the current program's spending level. HOUSING/HOMELESSNESS President Bush has taken a number of steps to create an "opportunity society" of jobs, growth, housing and hope for Americans in need of a helping hand. ACTION BY THE ADMINISTRATION: Homelessness: ((In his FY 1990 budget)), the President has proposed to provide over $1 billion in federal resources to help end homelessness and pave the way to jobs, permanent housing, health care and human dignity. President Bush's proposal calls for fully funding the McKinney Homeless Assistance Act and for a new $50 million matching grant 32 program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise zones: President Bush has called for enactment of enterprise zone legislation, to give urban and rural areas the opportunity for jobs and hope for the future. President Bush asked Congress to enact labor and capital-based incentives to create jobs and entrepreneurial activity in our most distressed communities. urban and rural Hab 3120 X Affordable housing: President Bush is committed to making housing more affordable for low-income families, and to provide homeownership opportunities to the disadvantaged and to young families. President Bush proposes to assist 109,000 new families in need of low-income housing, and has pledged to maintain assistance to those families already being helped. President Bush has also signalled his commitment to helping poor residents in public housing to become homeowners through resident management and ownership programs. ETHICS AND CIVIL RIGHTS High ethical standards and civil rights for all Americans are central to this Administration, and we will enforce them -- 33 strictly, comprehensively, fairly, and to the letter and spirit of the law. ACTION BY THE ADMINISTRATION: Campaign Finance Reform: The President's comprehensive campaign finance proposal is designed to lessen the power of special economic interests and restore competition to American Congressional elections. The package, which seeks to increase the role of individuals and political parties in the electoral process, has four facets: : Eliminating political action committees (PACs) supported by corporations, unions or trade associations, and prohibiting such entities from paying for the overhead or administrative costs of any independent PAC. : Strengthening political parties by increasing the amounts they can spend on behalf of congressional candidates. This source of funds would permit legislators to spend less time fundraising, would ensure that challengers have greater resources with which to challenge incumbents, and would further limit the role of special economic interests in elections. -- Addressing the problem of the "permanent Congress" by reforms designed to reduce the unwarranted advantages of incumbency. Specifically, the proposals would 34 prohibit the personal use of excess campaign funds, drastically reduce Congressional mailings under the frank, ban the rollover of campaign funds from one election cycle to the next, and legislate fair neutral criteria for the redistricting of Congressional and legislative lines that will follow the 1990 census. -- Fully disclosing all soft money spent by the political parties and all labor unions, corporations and trade associations to influence a federal election. Ethics: The President issued an Executive Order creating the President's Commission on Federal Ethics Law Reform. On March 9, the Commission filed its report and its recommendations to the President. Legislation was sent April 12th to the Congress, and the President issued an Executive Order announcing ethical principles for the conduct of executive branch employees. The President's proposals include: -- A ban on outside earned income for non-career Presidential appointees in the executive branch, including all employees in the immediate White House Office. -- Expanded financial disclosure for all three branches of government. 35 -- Prohibition of the conversion of political contributions for personal or office use. -- Deferral of tax liability when an individual is required by his or her agency to divest assets in order to avoid conflicts of interest. -- Strengthened rules against abusing the revolving door for private gain at the expense of the public trust. These rules also apply to the legislative branch. murr -- A 25 percent pay raise for federal judges was proposed x4864 mum x4864 in separate legislation submitted April 12, while the ethics reform legislation restricts their acceptance of also submitted legislation on July 7, honoraria. President Bush believes that honoraria for 1989, the On July 7,1989, Members of Congress should be banned; however, the would bas the President honoravil President will not formalize that proposal until after for Men submitted he consults with Congress on that issue and their pay bers of legislation payincreases calling Congres raise. He will include in that discussion the question rot of a pay increase for certain executive branch for certain specialized pro- positions. fessimals The extension of the Independent Counsel statute to other senior Executive cover the Congress. Branch officials. -- The extension of the federal statute that prohibits employees from taking actions that enhance their own financial interest to cover legislative and judicial branch employees. 36 -- The establishment of an independent ethics office for the Congress, to be headed by a clearly nonpartisan official, confirmed by both houses. -- The application of the existing one-year post- employment "cooling-off" period for senior executive- branch employees to the legislative and judicial branches. Whistleblower protection: The President supports public servants who revere the trust placed in them by the American people. On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989." This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. -- This new law will enhance the authority of the Office of Special Counsel, and whistleblowers will also now be allowed to take their cases to the Merit Systems Protection Board. -- The statute alters the legal burdens of proof, making it easier for employees to be vindicated when they are wrongfully penalized by their supervisors for whistleblowing activities. 37 Civil rights: The Administration has taken a number of actions to protect the civil rights of all Americans, including several court actions in key civil rights cases. -- [on March 8, the Department of Justice endorsed the T he Administra- objectives of the Hate Crimes Bill and voiced no This legislation tion supports opposition to the bill's enactment .) [The Hate Crimes enactment of Bill) provides for the collection of data about crimes the Hate Crime and similar factors. motivated by race, religion, ethnicity [or sexual Statistics Acl, now pending orientation in Crugress-- On March 13, Attorney General Thornburgh announced the filing of Federal housing discrimination lawsuits seeking monetary damages and civil penalties under the expanded enforcement authority of the Fair Housing Amendments Act of 1988. - INSERT ATTA CHED PAGE HERE - # # # insent onp. 37, as shown. PROVIDING FOR NATIONAL SECURITY AND INCREASING DEFENSE EFFICIENCY President Bush is committed to maintaining the advances in our military capabilities made since 1980 while exploring possibilities for arms control with the Soviet Union. A high priority has also been placed on improving the defense procurement process and streamlining defense operations. ACTIONS BY THE ADMINISTRATION O Providing for National Security: In April, the Administration submitted a revised defense budget which met the funding levels in the Bipartisan Budget Agreement. Difficult decisions had to be made, including reductions in planned force structure and the cancellation of the V-22 Osprey transport aircraft and the F-14D fighter aircraft. The resulting program provides for a strong national defense in a fiscally constrained environment. It permits the Department of Defense to maintain current operational readiness, attract and retain quality people, and develop and efficiently procure needed weapons. o Defense Management: In July, the Administration released a report to the President by Secretary of Defense Cheney on defense management. The report provides a basis for significant additional improvements in the management of the department and in the defense acquisition process. The President has asked Secretary Cheney to propose detailed implementing actions to be achieved in specific timeframes and plans to meet periodically with the Secretary to assess progress. He also has asked the Congress to help in this effort by adopting a biennial defense budget process, expanding multiyear procurement, streamlining procurement laws, and reducing micromanagement of defense programs. [ &r will be necessary for smoke to and a panagraph to the summary section of the package.] 3 Inflation under control: Consumer price inflation has remained under five percent for the past seven years, and the recent slowing in economic growth to a sustainable rate will lessen price pressures in the near future. The Administration and the Federal Reserve share the goal of achieving price stability. growth and provides for investment in Puture,competitiveness; Grady attends to several major problems from the ACTION BY THE ADMINISTRATION: past; meats are special oblig atons to provide for the needy. protect the environment, as fjut dugs; and addresses the fundamental need to provide for our national] security. Presenting a budget: The President put forth a budget that addresses our fundamental obligations for national security and support of the needy, while providing sufficient funds to advance high-priority initiatives. The President's budget restrains overall growth of spending and meets the Gramm-Rudman-Hollings targets -- with no new taxes in Fiscal Year 1990. Reaching a budget agreement with Congress: The President and Congress announced on April 14 a budget plan to reduce the estimated Fiscal Year 1990 deficit by about $64 billion below Fiscal Year 1989. The plan called for reducing the deficit to $99.4 billion, meeting the targets set by the Gramm-Rudman-Hollings law. This is the first budget agreement in recent years reached before the start of the budget year and not framed in the context of crisis. THE WHITE HOUSE WASHINGTON 89 JUL 27 P2:14 : July 27, 1989 MEMORANDUM FOR CHRISS WINSTON FROM; DENISE SCWHARZ (Bates) The attached is a late addition to the Six Months of the Bush Administration Paper submitted from the Peace Corps. Attachment JUL 27 '89 10:59 FROM 2544010 PAGE. 004 SUGGESTED PEACE CORPS INITIATIVES FOR THE BUSH ADMINISTRATION * Eastern Europe - As demonstrated by the Hungary an- nouncement, the United States Peace Corps can play a significant role in support of the President's initiatives to encourage the exciting political, social and economic changes currently taking place throughout Eastern Europe. It is likely that other countries will follow Hungary's lead in requesting Peace Corps. * Environment - To assist the Administration's efforts to protect and clean-up the environment world-wide, the Peace Corps, in conjunction with AID, the World Bank, and CARE, can expand its work in reforestation and other environmental programs. * Expanding Assistance to Developing Nations - The Administration's efforts to promote friendly relations with developing nations in Latin America, Africa, Asia, and the Pacific can be supported in a significant way with minimal addi- tional resources for Peace Corps (chart - page 3). * Small Business Development - One of the fastest growing Peace Corps programs is small business development. This program can make a major contribution to generating jobs and commerce in poor nations. (It should be noted that developing nations are major purchasers of U.S. products.) * Promoting Service in the Private Sector - To support the President's call for Americans to serve others, Peace Corps wants to involve the American private sector (business, civic clubs, individuals) in supporting the volunteers in the field. * Minority Outreach - Peace Corps is strongly committed to helping the President achieve his goal of involving more American minorities in every American experience, including service. * Global Awareness - Peace Corps can help Americans under- stand the increasing interdependence among nations and the value to our own nation of promoting friendship and development in for- eign countries. Document No. 05691955 WHITE HOUSE STAFFING MEMORANDUM 8/11/89 8/14/89 2:00 PM DATE: ACTION/CONCURRENCE/COMMENT DUE BY: SIX MONTHS OF THE BUSH ADMINISTRATION (REVISED DRAFT) SUBJECT: ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN WINSTON CARD CICCONI DEMAREST FITZWATER GRAY HAGIN REMARKS: This is a revised draft incorporating staff comments. Please review closely and forward any factual corrections to Chriss Winston, Rm. 122, x2930, no later than 2:00 PM Monday, August 14, with a copy to, my office. Thank you. PLEASE NOTE THAT THERE ARE TWO DOCUMENTS ATTACHED RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 DRAFT 1 ( (Grant) ) August 8, 1989 Draft six A:sixmonth BUILDING A BETTER AMERICA ACCOMPLISHMENTS OF THE BUSH ADMINISTRATION SUMMARY As the Bush Administration passes the six-month mark, the President has set the agenda on a number of fronts-domestically - - from the environment and education to the fight against drugs and crime. The economy is strong, with the current economic expansion continuing to set new records and create new jobs. continues to lead Meanwhile, America is standing tall in the international arena, success after President Bush's leadership at two multilateral summits paved the way for greater understanding among the allies and improved relations with the Soviet Union and the Eastern Bloc nations. KEEPING THE ECONOMY STRONG Record expansion: During the current economic expansion -- now in its 80th month as of July -- over 20 million jobs have been created and the unemployment rate has fallen to levels not seen in 15 years. Income levels have risen sharply and growth in industrial output is nearly double 2 that of Western Europe. Consumer price inflation has remained under five percent for the past seven years. Budget agreement: The President has put forth a budget which restrains overall growth of spending and meets the Gramm- Rudman-Hollings targets -- with no new taxes in fiscal year 1990. The President and Congress announced on April 14 a budget plan to reduce the estimated fiscal year 1990 deficit by about $64 billion below fiscal year 1989. Savings and Loans: On August 9, the President signed the Financial Institution Reform, Recovery and Enforcement Act of 1989 to begin solving the savings and loan crisis. The President's plan calls for tough standards to help ensure such a crisis never happens again. Third World debt: The Administration has taken the lead in finding a way to reduce the debt burden and encourage economic growth in developing countries. At the Administration's urging, the IMF and World Bank have set aside funds to support debt reduction programs for developing countries. Capital gains tax cut: The President has sent to the Congress a proposal that would re-establish a capital gains differential to lower the cost of capital, create incentives 3 for investment, make American business more competitive and create new job opportunities. Minimum wage: The President, by vetoing the excessive across-the-board increase in the minimum wage proposed by Congress, preserved job opportunities for the disadvantaged and blunted the adverse economic impact such a move would have had. International Trade: The Bush Administration successfully broke a stalemate in the Uruguay Round of multilateral trade negotiations and advanced its proposal to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports. and discuss structural SEIZING INTERNATIONAL OPPORTUNITI "Europe Whole and Free": In a series o1 trade impediments to (Agree expanding President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies and seizing an historic opportunity to move toward ending the postwar division of Europe. Poland and Hungary: The President signalled his strong support for democratic change in Hungary and Poland by 4 visiting those nations and offering political and moral support as well as economic and trade incentives. Economic Summit: Under President Bush's leadership, the Paris Economic Summit made further progress on key U.S. economic and political objectives such as a strengthened debt strategy, economic policy coordination, completion of the Uruguay Round by December 1990 and international cooperation on protection of the environment. or. Our political allies agreed to support Polish and Hungarian economic reforms. "Beyond Containment": The President has responded to great changes in the Soviet Union by moving "beyond containment" to a policy that seeks to integrate the Soviet Union into the community of nations. Arms Control/NATO Summit: In arms control, the President has accelerated the pace of negotiations with the Soviet Union, with new American initiatives on reducing conventional forces in Europe (endorsed by the NATO Summit), on "open skies," and on strategic arms reduction. The U.S.-Soviet Dialogue: The US-Soviet dialogue on Third World regional conflicts has resumed intensively, and a US- Soviet dialogue has begun on a new range of global problems 5 that require global cooperation, such as terrorism, the environment, and narcotics. China: In response to the suppression of the democratic movement in China, the President signalled that we cannot condone repression while he worked to preserve the basic elements of a strategically important relationship. Central American accord: The President and Congressional leaders agreed on March 24 on a bipartisan strategy for peace and democracy in Central America. Strengthening Our Strategic Deterrent: After a thorough review of U.S. defense strategy, the President submitted to the Congress a defense budget that will modernize our ability to deter war. INVESTING IN OUR FUTURE Education: The President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives -- on merit and magnet schools, alternative certification of teachers, excellence awards for teachers, emergency grants to help urban schools to fight drugs, increased funding for 6 endowments at Historically Black Colleges, and a National Science Scholars program. The Act has been reported to the Senate floor virtually intact. Natural Gas Deregulation: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas by January 1, 1993. Clean Air Act revisions: On July 21, President Bush transmitted to the Congress the first revisions to the Clean Air Act since 1977. His legislation is designed to drastically reduce three major threats to the nation's environment: acid rain, urban air pollution, and toxic air emissions. Hazardous waste: The President announced that he will seek new legislation to ban all exports of hazardous waste unless an agreement already exists with the receiving country to provide for its safe handling. Ozone depletion: In order to prevent further damage to the earth's protective ozone layer, the President has called for a total worldwide phaseout of CFCs by the year 2000, provided safe substitutes are available. 7 Medical Waste: The EPA has begun a tracking system for medical wastes and the Justice Department has started a task force to prosecute those who deliberately dump medical wastes into the Nation's waters -- the first step in a comprehensive program to help keep our beaches clean. The President is committed to end ocean dumping of sewage sludge by 1991. Wetlands: The President is committed to "no net loss of wetlands" and is directing his executive branch agencies, through an interagency task force, to make recommendations to achieve that goal. He has also proposed $206 million in his budget to expand parks and wildlife refuges. Combatting Violent Crime: President Bush transmitted to Congress The Comprehensive Violent Crime Control Act of 1989 proposing measures to augment enforcement and prosecution, strengthen current law, control certain semi-automatic weapons, and expa we want to use "control" Fighting Drug Abu given conditation of "gun control? esting $6 billion in fundin "restrict" 3 war, increasing outlays by early $1 billion for drug education, treatment and enforcement. In September, the President will announce the Administration's new drug strategy and budget. 8 Drug-free Public Housing: The Bush Administration is working to make public housing drug free, and to protect the rights of the vast majority of decent, law-abiding public housing residents. D.C. Anti-Drug Efforts: The Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, and providing support in enforcement and local treatment efforts. Space: The President announced a three-step commitment to establish America's preeminence in space -- Space Station Freedom, a permanent presence on the Moon, and a manned mission to Mars -- for this and future generations. Transportation: The President directed the Secretary of Transportation to develop a national transportation policy to move America into the 21st century. WORKING FOR A KINDER, GENTLER AMERICA Child Care: The President has transmitted to the Congress a child care package, the Working Family Child Care Assistance Act of 1989 which provides a new refundable child care tax 9 credit of up to $1000 per child under age four, for low and moderate income working families. This legislation will also make the existing Child and Dependent Care Tax Credit refundable, and does not discriminate against religious or family-based child care or a parent who chooses not to work outside the home. Head Start: The President has also transmitted legislation to Congress that would allow a $250 million increase in Head Start appropriations. This will pay for enrollment of up to 95,000 more four-year-olds in the program. National Service: The President is spearheading a movement to call all Americans to national service. He has announced the formation of a foundation known as the Points of Light Initiative to identify, enlarge and recreate those community service initiatives that are working and to discover and encourage new leaders. Welfare Reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988, as the next step in welfare reform. The Administration is proposing to spend $3.6 billion over the next five years to implement the JOBS program. The Act will help reduce the number of individuals who need welfare. 10 Medicaid: To address the all-too-high infant mortality rate, the Administration forwarded to Congress legislation to improve federal Medicaid assistance to pregnant women, infants and children. Homelessness: President Bush has called for full funding of the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise Zones: President Bush asked Congress to enact labor and capital-based incentives -- through enterprise zones -- to create jobs and entrepreneurial activity in our most distressed communities. Campaign Finance Reform: On June 29, the President announced comprehensive campaign finance proposals designed to lessen the power of special economic interests and restore competition to American Congressional elections. esident has called upon Congress to reauthorize the Commission on Civil Rights and has proposed additional funding for Historically Black Colleges and Universities (HBCUs). The Administration has endorsed the Hates Crimes Bill which provides for the collection of data 11 about crimes motivated by race, religion, or ethnicity. The Civil Rights Division of the Department of Justice has vigorously pursued the enforcement of the Fair Housing Amendments Act of 1988 which became effective in March. Ethics: President Bush sent his ethics reform legislation, The Government-Wide Ethics Act, to the Congress on April 12, and he issued an Executive Order announcing ethical principles for the conduct of executive branch employees. Whistleblower Protection: On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989." This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. ### BUILDING A BETTER AMERICA SIX MONTHS OF THE BUSH ADMINISTRATION KEEPING THE ECONOMY STRONG Maintaining the current expansion with low inflation is the key to improving standards of living, increasing job opportunities for all Americans, and increasing investment in productive capacity. Economic performance during this expansion has been exceptionally good with extraordinary job growth. The policies of the Bush Administration are designed to preserve this strong record. Record peacetime expansion: The current expansion reached 80 months in July. August will mark the longest economic expansion in U.S. history, surpassing the World War II expansion of 80 months (from June 1938 - February 1945). Job creation: Over 20 million new jobs have been created during this expansion, and this year, the unemployment rate has reached levels not seen in 15 years. During this decade, America has created more new jobs than Japan and the nations of Western Europe combined. Record income: Real per capita disposable personal income -- personal income after taxes and inflation -- has risen 19 percent during this expansion. Real median family income 2 set a new record in 1987, the last year for which data are available. Industrial output: During this expansion, American industrial output has grown almost 41 percent, nearly double Western Europe's growth rate in industrial output. Higher national saving and investment: During the first nine months of fiscal year 1989, the Federal Government budget deficit was less than during the same period in the previous fiscal year. Partly due to the discipline of Gramm-Rudman-Hollings, the Federal deficit has declined from 6.3 percent of GNP in fiscal year 1983 to an estimated 2.9 percent this fiscal year. The personal saving rate has risen to 5.4 percent. Business fixed investment as a percent of real GNP rose to 12.4 percent in the second quarter of 1989. 3 Inflation under control: Consumer price inflation has remained under five percent for the past seven years, and the recent slowing in economic growth to a sustainable rate will lessen price pressures in the near future. The Administration and the Federal Reserve share the goal of achieving price stability. ACTION BY THE ADMINISTRATION: Presenting a budget: The President put forth a budget that addresses our fundamental obligations for national security and support of the needy, while providing sufficient funds to advance high-priority initiatives. The President's budget restrains overall growth of spending and meets the Gramm-Rudman-Hollings targets -- with no new taxes in Fiscal Year 1990. Reaching a budget agreement with Congress: The President and Congress announced on April 14 a budget plan to reduce the estimated Fiscal Year 1990 deficit by about $64 billion below Fiscal Year 1989. The plan called for reducing the deficit to $99.4 billion, meeting the targets set by the Gramm-Rudman-Hollings law. This is the first budget agreement in recent years reached before the start of the budget year and not framed in the context of crisis. 4 Savings and Loan reform: The President signed the Financial Institution Reform, Recovery and Enforcement Act of 1989 on August 9. This legislation comes to grips with the problems facing our savings and loan industry, and will safeguard and stabilize America's financial system. The Act authorizes regulators to spend $166 billion over 10 years to eliminate ongoing losses of more than 500 insolvent savings institutions, and recover assets for taxpayers. This legislation abolishes the agency once responsible for thrift supervision, and creates a new agency that will operate as part of the Treasury Department. A new insurance fund, called SAIF, will protect deposits in thrift institutions with the guarantee of the full faith and credit of the United States. Penalties for wrongdoing by officers of insured institutions will be stiff, and criminal t really would be careful 1. Also, effective about calling the Bady Plan a nts will be established for ices in the thrift "solution Addressing the Int'll Debt Problem Solution of the international debt problem: The Administration has taken the lead encouraging commercial banks to reduce the debt and debt service burdens of developing countries. At the Administration's urging, the IMF and World Bank have agreed to support debt and debt service reduction in conjunction with their debtor programs 5 to promote investment, growth, and the return of flight capital to these countries. The recent agreement between Mexico and commercial banks with its emphasis on debt and debt service reduction attests to the viability of the Administration's plan for resolving the LDC (less developed countries) debt problem and should lead to similar agreements with other heavily-indebted countries. Capital gains tax rate cut: A lower tax rate for long-term capital gains is a key element of President Bush's economic program. It will reduce the cost of capital in the United States, create incentives for investment and increase job opportunities for Americans. The President's proposal, which has been sent to Congress, includes: -- A 45 percent capital gains exclusion for qualified capital gains, or a 15 percent maximum capital gains tax rate at the taxpayer's option. -- A phased-in increase in the qualifying holding period from one year to three years. -- An exemption from the capital gains tax for families earning under $20,000. Minimum wage proposal: The President believes in keeping job opportunities available for youth and for those seeking to enter the economic mainstream. The excessive across-the- board increase in the minimum wage which was proposed by 6 Congress would have had an adverse economic impact and cut job opportunities drastically. Accordingly, the President vetoed the bill, passed by Congress. The veto was later sustained. International Trade: The Administration is forcefully promoting the opening of world markets. It successfully broke a stalemate in the Uruguay Round's mid-term review and put in place a framework, agreed to by the 96 member nations, to correct and prevent trade distortions in agriculture. It is engaged in bilateral trade talks with important trading partners to encourage them to open their markets to our exports. Together these efforts should greatly expand opportunities for U.S. exports. Steel imports: The President initiated a two-and-a-half year Steel Trade Liberalization Program designed to phase out, in a responsible and orderly manner, the Voluntary Restraint Arrangements (VRA's) that currently limit steel imports into the U.S. and to negotiate an international consensus to address trade-distorting practices. Agricultural initiatives: The Administration has announced additional advance deficiency payments of 10 percent available to producers of wheat, feed grains, rice and upland cotton. In addition, a top-level Working Group on 7 Rural Development was established by the President to focus on an action-oriented agenda. Preident? K"Administration lie. Tretter? technically "yes" National Energy Plan: The Pre of Energy to develop a comprehensive strategy for the nation. The strategy will help the nation meet our energy security and environmental responsibilities and, at the same time, allow a sensible mix of energy sources to protect America's technical competitiveness. SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE President Bush is committed to maintaining a strong American role in world leadership and sees in present global trends an unprecedented opportunity for strengthening both world peace and the cause of freedom. ACTION BY THE ADMINISTRATION: "Europe Whole and Free": In a series of major speeches, the President outlined a vision of a new Europe -- secure, prosperous, whole and free -- vindicating four decades of Western policies and seizing historic opportunities to move toward ending the postwar division of Europe. 8 -- Western Europe: As the European Community heads toward a single market in 1992 and develops its political institutions and a more coordinated approach to foreign policy, the President welcomed these developments and proposed new mechanisms for consultation with the EC Commission and member states. Seeing the resurgence of Western Europe as a triumph of Western values and principles, the President welcomed its success, confident that a mature partnership will serve mutual interests. : NATO Summit: At the successful NATO Summit, the President's vision of Europe as well as agreement on a new conventional arms reduction initiative helped restore Alliance unity and confidence and define the Alliance's future agenda. : Eastern Europe: As Poland and Hungary take unprecedented steps toward pluralism, democracy, and market economic policies, the United States has signalled its strong support. These steps provide an opportunity not only for a democratic transition in these countries, but also for a broader process of European reconciliation. Offering political and moral support as well as economic assistance, the President proposed two major new initiatives for Poland and Hungary. 9 -- Poland: Following up on the program the President announced earlier this year in Hamtramck, Michigan, he called for action to declare Poland a beneficiary country under the U.S. Generalized System of Preferences. The Overseas Private Investment Corporation will be authorized to operate in Poland, and the US is proposing a private business agreement that will promote contacts between the private sectors of both countries. The President will ask Congress to provide a $100 million fund to help capitalize and invigorate the Polish private sector and encourage the World Bank to move ahead with new loans to help Polish agriculture and industry. He has encouraged other members of the Paris Club to agree to an expeditious rescheduling of Polish debt. Finally, he will ask Congress for $15 million in a cooperative venture with Poland to help fight air and water pollution in Krakow. -- Hungary: The President will ask Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private sector. As soon as new emigration legislation has passed the Hungarian Parliament, the President will inform Congress that Hungary is in full compliance with the restrictions of the Jackson-Vanik Amendments of the 1974 Trade Act. This will make Hungary eligible for Most-Favored-Nation tariff treatment for the maximum period allowable under 10 the law. The President also declared Hungary a beneficiary country under our Generalized System of Preferences which will allow duty free entry of Hungarian products into the U.S. market. He also called for legislation to allow OPIC to operate in Hungary, and for greater scientific, technical, educational and cultural exchanges between the US and Hungary. The President will seek to establish an International Environmental Center for Central and Eastern Europe in Budapest. Finally, he announced that the Peace Corps would operate in Hungary -- the first time in a European country. -- The Economic Summit in Paris: The mission of the President's historic visit to Poland and Hungary and his successful effort at the Paris Economic Summit was to promote concerted actions among the industrial democracies in the economic and political arenas. The industrial democracies demonstrated their unity, as they dealt with a variety of issues on the international economic agenda, as well as the problem of drugs and the environment. "Beyond Containment": Seeing an historic process of change in the Soviet Union, the President has declared his intention to move beyond the successful policy of containment of Soviet power to a new policy whose goal is 11 integrating the Soviet Union into the world community as a constructive partner. Positive changes so far in Soviet policies -- in human rights, economic reforms, and settlement of some international conflicts -- need to be encouraged and broadened. The United States will be ready to respond to such further developments. Already: -- The US-Soviet dialogue on conflicts in regions of the Third World has resumed intensively, with regular meetings at the level of Assistant Secretary of State. -- A US-Soviet dialogue has begun on a new range of global problems that require global cooperation, such as terrorism, the environment, and narcotics. -- In arms control, the President has accelerated the pace of negotiations, with new American initiatives on reducing conventional forces in Europe (endorsed by the NATO Summit), and on strategic arms reduction. U.S. initiatives also aim at early progress on verification issues to further early agreement on strategic arms reductions. China: In response to the tragic suppression of the democratic movement in China, the President ordered the suspension of all government-to-government sales and commercial exports of weapons, suspension of visits between US and Chinese military leaders, sympathetic review of requests by Chinese students in the United States to extend 12 their stay, and review of other aspects of US-PRC bilateral relations. The President's policy signals that repression cannot be condoned. But it also seeks to preserve the basic elements of a strategically important relationship that has, itself, played a major part in China's recent policy of reform and openness. Latin America: The President has established a close, working relationship with Latin American neighbors to foster a new partnership on hemisphere problems like democracy, debt and drugs. Relations with Mexico are closer than at any time in recent memory. The U.S. has also worked with the Organization of American States to develop a hemispheric consensus urging Manuel Noriega to leave power. Bipartisan Accord on Central America: The President and Congress agreed on March 24 on a bipartisan plan for peace and democracy in Central America: -- Regional peace: The President and Congress agreed that the region's democracies deserve our support, that Nicaragua's subversion of its neighbors must end, and that Soviet support for violence and subversion in the hemisphere must also end. Humanitarian aid: Congress agreed to support the Administration's request for continued humanitarian assistance for the Nicaraguan Resistance at 13 current levels through the elections in Nicaragua scheduled for February 1990. -- Democracy: The Communist Sandinistas are being put to the test to permit a real democratic electoral contest for political power, fulfilling the promises of democratic pluralism that they have made (and broken) so often before. Middle East: The Administration is devoted to promoting progress toward peace in the Middle East by supporting the government of Israel's May 14 initiative calling for Palestinian elections in the occupied territories. These elections can be a step toward a comprehensive peace settlement that assures Israel's security and the legitimate political rights of the Palestinians. The Administration is also supporting the efforts of the Arab League to bring peace to Lebanon. A Strong Defense: The President proposed to Congress a two- missile plan to maintain a strong, modernized strategic deterrent. The plan to deploy the rail-mobile Peacekeeper and the road-mobile Small ICBM will also give the U.S. momentum in strategic arms control negotiations. -- The President proposed to Congress an integrated package on strategic modernization that capitalizes on the revolutionary potential of the B-2, and modernizes 14 the third leg of the Triad -- essential also to our arms control positions. : The President requested a funding level of $4.6 billion for the Strategic Defense Initiative to support an informed development and deployment decision within the next 4 years. Air Transportation Security: The Administration has taken several measures to enhance security and efficiency in the air transportation system. These efforts include: -- A proposed 17% increase in the budget for the Federal Aviation Administration. -- New requirements for installation of explosive detection devices in high-risk airports. -- Intense international negotiations to enhance security abroad. Review of Defense Management: The President directed the Department of Defense to conduct a complete review of its management and acquisition practices. The resulting Administration blueprint to strengthen and streamline the weapons procurement process will serve the American taxpayer well. The President has ordered the Defense Department to implement the blueprint. 15 INVESTING IN OUR FUTURE Record economic growth has provided America with the opportunity to invest in a brighter future. Because America's available resources are limited, the President's programs are designed to focus our efforts on those initiatives most likely to create growth in the years ahead. EDUCATION The President's actions to improve education are guided by four key principles: that excellence and success in education should be recognized and rewarded; that federal funding should be targeted to those who need it most; that choice and flexibility - - for educators, parents and students -- are important to educational reform and to achieving excellence; and finally, that greater accountability is needed in the education system to assure that students are actually receiving the highest quality education. ACTION BY THE ADMINISTRATION: On April 5, the President proposed and sent to the Congress a comprehensive education package, The Educational Excellence Act of 1989, which includes seven initiatives: -- The Presidential Merit Schools program -- to reward schools that are making substantial progress in raising 16 students' educational achievement, creating a safe and drug-free school environment, and reducing the drop-out rate. -- A new Magnet Schools of Excellence program -- to support the establishment, expansion or enhancement of magnet schools, increasing parental choice and improving quality education. : The Alternative Certification of Teachers and Principals program -- to assist States interested in broadening the pool of talent from which to recruit teachers and principals. -- President's Awards for Excellence in Education -- to be awarded to public and private school teachers in every state who meet the highest standards of excellence. -- Drug-free Schools Urban Emergency Grants -- to provide special assistance to selected urban school districts that are disproportionately affected by drug trafficking and abuse. -- A National Science Scholars program -- to provide college scholarships to high school seniors who have excelled in the sciences and mathematics. -- Additional Funding Authorization for Endowment Matching Grants at Historically Black Colleges and Universities -- to strengthen HBCUs by building endowments, an especially effective way to create financial strength and long-term security. 17 On April 24, the President issued a new Executive Order on Historically Black Colleges and Universities (HBCU). Highlights of the order include: -- Establishing the President's Board of Advisors on Historically Black Colleges and Universities in the Department of Education. -- Directing Federal agencies to increase opportunities for HBCU involvement in Federal programs and directing the Secretary of Education to develop an Annual Federal Plan for Assistance. : Calling for the White House Office of National Service, along with other Federal offices to work to encourage private sector support of HBCUs. 18 THE ENVIRONMENT President Bush, a long-time environmentalist, has taken strong action to protect the environment. He believes that environmental protection, conservation and wise management of our national resources must have a high priority on our national agenda. ACTION BY THE ADMINISTRATION: Natural Gas Decontrol: On July 26, the President signed into law the Wellhead Decontrol Act of 1989, which ends all remaining price controls on natural gas. This will phase out all federal price controls on natural gas by January 1, 1993. Clean Air le not me this should be smitted to the Congress a S first. do does have emison- in air for all Americans. mental implications, but other ted to Congress on July 21, 198 things are more important to ns to the Clean Air Act sind environmentalist, if gas see. in environment not three major threats to t Better explain at to 1st clean rain, urban air pollution, a an -- Acid Rain: Sulfur dioxide emissions that cause acid rain will be cut in half, by ten million tons, and nitrogen oxide levels cut by two million tons -- by the 19 end of this century. Companies will be allowed to trade credits among themselves for reductions they make, so that they can decide how to bring aggregate emissions down as cost-effectively as possible. -- Urban Air Pollution: By employing a mix of federal measures and state initiatives, this legislation will sharply cut air pollution in our cities by the year 2000. The federal measures alone will cut hydrocarbon emissions -- which contribute to urban ozone -- by almost half. Currently, 81 cities don't meet Federal air quality standards. This legislation will bring clean air to all but 4 cities by 2000 -- and within 20 years, Los Angeles, Houston, New York, and Chicago. In the nine urban areas with the problems, smog will be cut through a. A and clean-fueled vehicles. The Pres: Does this mean for the phased-in introduction of a 1 2009a 2020 ? clean-fueled vehicles in 1995, build: in 1997 through 2004. To the maximum extent feasible, automobile and fuel companies will be allowed to trade reduction credits among themselves. -- Toxic Air Emissions: All categories of airborne toxic chemicals should be cut by 75 percent by the year 2000. In its first phase, this initiative should eliminate 20 about three-quarters of the needless deaths from cancer that are suspected to have been caused by toxic industrial air emissions. Until now, because of an unworkable law, the EPA has been able to regulate only seven of the 280 known air toxics. The President's plan will allow EPA to do its job better, and will apply the most advanced industrial technology available to control these airborne poisons. The legislation promises certifiable progress in regulating sources of toxic air emissions on a set schedule. Alaskan oil spill: A Cabinet-level team was sent to assess the Alaskan oil spill, and a joint federal-state resource recovery team was convened. The National Transportation Safety Board is investigating the accident. Exxon has accepted responsibility for paying for the cleanup, and for employing local civilian personnel necessary to control further damage. The Departments of Transportation and Interior, as well as the EPA, are coordinating the long- range planning to restore the environment of Prince William Sound, and the President has ordered a review of existing contingency plans for accidents such as this. 21 oil Spill Legislation: On May 11, the Administration transmitted to Congress comprehensive oil pollution liability and compensation legislation that broadens and strengthens our existing patchwork of laws. The bill provides swift and assured compensation for cleanup costs and damages through a liability system based on strict financial responsibility requirements for shipowners backed up by an oil-industry financed fund. Outer Continental Shelf Task Force: The President set up a special task force to address environmental concerns about oil and gas drilling off the coasts of California and Florida. -- On April 18, the Interior Department proposed a $6 million research program on oil spill detection, containment and clean-up technology. Cleaning up hazardous wastes: The President announced he will be seeking new legislation to amend the Resource Conservation and Recovery Act in order to give the United States Government authority to ban all exports of hazardous waste unless an agreement exists with the receiving country providing for the safe handling and management of those wastes. 23 Wetlands: The President is also committed to "no net loss of wetlands" and is directing his executive branch agencies, through an interagency task force, to make recommendations to achieve that goal. He has also proposed $206 million in his budget to expand our parks and wildlife refuges. Asbestos Ban: On July 7, EPA announced an almost total phase-out of all uses of asbestos by 1997. The ban will prohibit importation, manufacture and processing of asbestos, a carcinogen linked to lung cancer and mesothelioma (lung and chest cancer). Improved Forecasting: The Commerce Department announced that beginning in Fiscal Year 1990, the National Weather Service will modernize and restructure its operations to provide improved forecasting and weather warning systems. The new system will include advanced weather radar, observation automation, and a new communications system. COMBATTING VIOLENT CRIME The President is working to strengthen the nation's criminal justice system and the Federal, state, and local law enforcement partnership. Four principles underlie the goals of our criminal justice system and the means for accomplishing them: First, to protect 24 citizens and their property; to hold those who commit violent crimes accountable for their actions; to have as the objective of our criminal justice system the swift and certain apprehension, prosecution and incarceration of those who break the law; and finally, to ensure a sustained, cooperative effort by Federal, state and local law enforcement authorities. ACTION BY THE ADMINISTRATION: On May 15, 1989, President Bush transmitted to Congress The Comprehensive Violent Crime Control Act of 1989 to combat violent crime. The President's initiative includes: -- Strengthening Current Laws: The President is calling on Congress to double the mandatory minimum penalties -- from five years to ten years in Federal prison -- for the use of semi-automatic weapons in violent crimes or drug felonies. In addition, the Attorney General has been directed to advise America's prosecutors to end plea bargaining for violent Federal firearms offenses. President Bush called on Congress to enact the steps necessary to implement the death penalty for the most serious Federal crimes, and urged state Governors to match these Federal initiatives -- new mandatory sentencing, tougher rules on plea bargaining, and implementing the death penalty -- in the States. 25 -- Controlling Certain Semi-Automatic Weapons: In July, the Administration took action to ban permanently the importation of any semi-automatic weapons which fail to meet the criteria specified in the Gun Control Act of 1968. The President also called for the closing of loopholes which allow access to such guns by certain classes of criminals, and he proposed prohibiting the importation, manufacture, sale or transfer of gun magazines of more than 15 rounds. -- Augmenting Enforcement: The President has directed the Attorney General and the Treasury Secretary, working together with state and local authorities, to launch a comprehensive, coordinated offensive against America's most violent criminals. President Bush requested funding for the hiring of 825 new Federal agents and staff -- 375 at the Bureau of Alcohol, Tobacco and Firearms; 300 at the FBI; and 150 Deputy U.S. Marshals. This offensive, including state and local enforcement authorities, will target violent criminals and repeat offenders. -- Enhancing Prosecution: The President proposed increased funds for the U.S. Attorneys Offices to support 1,600 new prosecutors and staff, and increased funds for the Justice Department Criminal Division to support 168 new positions, to handle drug cases, weapons offenses and other priority matters. 26 -- Expanding Prison Capacity: The President proposed an additional $1 billion for Federal prison construction, bringing the total FY 1990 budget to over $1.5 billion. This will add 24,000 new Federal prison beds to the current 31,000 beds, an increase of nearly 80%. FIGHTING DRUG ABUSE We have begun a new war on drugs in this country. The President believes a four-pronged approach is key: education, treatment, interdiction and enforcement. The policy of this Administration is "zero tolerance." No amount of illegal drug use is acceptable. This means dealing with both supply and demand. ACTION BY THE ADMINISTRATION: Budget: The Administration is requesting $6.4 billion in funding for FY 1990 to fight the drug war, increasing outlays by nearly $1 billion for drug education, treatment and enforcement. Education: The Administration is requesting nearly $1.1 billion for education and prevention efforts. This is a 16 percent increase over 1989 and includes funding for ongoing programs and new initiatives. 28 -- To make drug use and trafficking a lease violation subject to eviction proceedings; -- To target federal assistance to anti-drug security measures; -- To revoke federal housing subsidies from those dealing in drugs; -- To involve the private and voluntary sectors in efforts to rid public housing of drugs and give residents, especially young people, a stake in their communities and their futures. In addition, the Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia by expanding the Metropolitan Area Task Force, working for more prisons, and providing FBI support in enforcement. The assistance of the National Institute on Drug Abuse will be provided to local treatment efforts. The Department of Education will assist the District with 50 percent more funds for drug prevention programs in city schools and the Department of Labor will support employee assistance programs and work with the business community to increase job training for youth. 29 WORKING FOR A KINDER, GENTLER AMERICA CHILD CARE The changing nature of American society heightens the need for quality, affordable, accessible child care. President Bush wants to put choice in the hands of parents so that they -- not government -- have the power to select the best and safest environment for their children. ACTION BY THE ADMINISTRATION: Child care: The President transmitted to Congress a child care package, the Working Family Child Care Assistance Act of 1989 which: : Provides a new refundable child care tax credit of up to $1000 per child under age four, for low income working families. -- Makes the existing Child and Dependent Care Tax Credit refundable. : Does not discriminate against religious- or family- based child care, or a parent who chooses not to work outside the home. 30 The President has directed Secretary of Labor Dole to determine whether the barriers to securing liability insurance impair child care. Head Start: The President also transmitted legislation to Congress that would allow a $250 million increase in Head Start appropriation. This will pay for enrollment of up to 95,000 more four-year-olds in the program. NATIONAL SERVICE The President's vision to help overcome the disintegration of communities and build a better America -- not through a federal government program, but through a nationwide service movement -- has three facets: First, to issue a call to all individuals and institutions to claim society's problems as their own; second, to identify, enlarge and recreate what is working; and third, to discover and encourage new leaders. ACTION BY THE ADMINISTRATION: President Bush called on: -- all Americans and all American institutions, large and small, to make service of central value in their daily life and work; 31 -- all heads of business and professional firms to include community service among the factors considered in making hiring, compensation and promotion decisions; -- newspapers, magazines, radio and television stations, cable systems, and other media institutions to identify service opportunities, spotlight successful service initiatives and profile outstanding community leaders regularly; -- all state and local education boards to uphold the value of service and to encourage students, faculty and personnel to serve others; -- college and university presidents to recognize the value of community service in considering applicants, and to encourage and uphold the value of community service; and -- not-for-profit service organizations to build the capacity to absorb increasing numbers of volunteers in purposeful roles. Identifying, Enlarging, and Recreating What is Working: The President announced the formation of a foundation called the Points of Light Initiative, of which he will serve as Honorary Chairman. Formed to identify and build upon what is working, the Foundation will act as a magnet for the best ideas and brightest programs in community service and then serve as a catalyst to project these ideas into every corner 32 of the nation. The Administration will ask Congress for $25 million annually to support this initiative, which will, in turn, seek matching funds from the private sector. The President has also encouraged all governors nationwide to join the movement by forming State and local Points of Light working groups composed of outstanding leaders. -- Through a Foundation initiative called the ServNet Project, professional firms, corporations, unions, schools, religious, civic and not-for-profit groups will be asked to donate the services of some of their most talented and promising people for a period of time. Peer-to-peer working groups will be formed to bring examples of successful initiatives and provide training, technical assistance and other support to enable other institutions to devise similar initiatives. : Another Foundation initiative, the ServLink Project, will help improve existing methods of matching would-be volunteers with purposeful service opportunities. ServLink will stimulate the development, through private sector resources, of "technology links" like telephones, computers and other mechanisms between those who wish to serve and those needing service in the inquirer's own community. 33 -- The Foundation will also discover and encourage new leaders by recognizing them through two new Presidential Awards: -- The National Service Youth Leadership Awards will be given each year to individuals. -- The President's Build a Community Awards will honor those people and institutions who have worked together to rebuild families or to revitalize communities. WELFARE REFORM The Administration has developed a major new education and job training program to help recipients of Aid to Families with Dependent Children move off welfare and become economically self- sufficient. ACTION BY THE ADMINISTRATION: Welfare reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988. The proposed rules are designed to: : Target job training assistance to those who are most likely to benefit and who are most at risk for long- term welfare dependency. 34 : Provide maximum level of flexibility to AFDC parents in obtaining the type of child care that best suits their needs, consistent with the Administration's legislative proposals on child care. JOBS Program: The Administration is proposing to spend $3.3 billion over the next five years implementing the JOBS program. The changes will pay benefits in the future by reducing the number of individuals on welfare. It is estimated that 138,000 families will be able to leave welfare rolls over the next five years as a result of this program. EXPANSION OF MEDICAID The President is committed to health care for disadvantaged mothers and children, the disabled, and poor, aged Americans and has called for full funding of Medicaid. This will mean $37.6 billion for FY 1990, an increase of $3.3 billion, or 9.6 percent over the FY 1989 level. ACTION BY THE ADMINISTRATION: Expanding Medicaid: On April 18, the Administration forwarded to Congress proposed legislation to make federal programs better serve pregnant women, infants and children. The legislation would expand the population Medicaid serves, 35 making Medicaid available to 1.9 million more women when they become pregnant. The legislation would: -- Increase by 374,000 the number of pregnant women and children eligible 7 X -- Foster greater pa aren'these contrabictory? figures aid by eligible pregnant women by to pregnant women who are presumed Yes id before a formal eligibility determination nd by requiring States to operate outreach programs in areas of high infant mortality. -- Entitle all children under age 6, who are receiving Food Stamps, to receive Medicaid coverage for immunizations. -- Make the Federal match rate for State administration expenses a uniform 50 percent by gradually reducing special administrative match rates that currently range from 75 to 100 percent. The savings that would result would allow the legislative eligibility changes proposed by the President to be implemented within the current program's spending level. AIDS INITIATIVES The Administration is moving on a number of fronts to combat the spread of AIDS. 36 ACTION BY THE ADMINISTRATION: AIDS Clinical Trials Information Service: The Administration developed a computerized listing though which AIDS patients and their doctors can get up-to-date information on clinical trials of AIDS drugs and vaccines -- whether federally or privately sponsored. Experimental AIDS Drugs: The Administration unveiled a proposal to allow wider availability of experimental therapeutic drugs used to treat people with AIDS. AIDS Prevention Guide: The Administration joined the National Parent Teachers Association in announcing the distribution of 500,000 copies of the "AIDS Prevention Guide" for use by parents and teachers nationwide. $5 Million Transferred to States -- AIDS Treatment: The Administration transferred $5 million from currently appropriated AIDS funds to assist needy individuals in the purchase of treatment drugs for AIDS and related conditions. 37 HOUSING/HOMELESSNESS President Bush has taken a number of steps to create an "opportunity society" of jobs, growth, housing and hope for Americans in need of a helping hand. ACTION BY THE ADMINISTRATION: Homelessness: In his FY 1990 budget, the President has proposed to provide over $1 billion in federal resources to help end homelessness and pave the way to jobs, permanent housing, health care and human dignity. President Bush's proposal calls for fully funding the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Affordable housing: President Bush is committed to making housing more affordable for low-income families, and to provide homeownership opportunities to the disadvantaged and to young families. President Bush proposes to assist 109,000 new families in need of low-income housing, and has pledged to maintain assistance to those families already being helped. President Bush has also signalled his commitment to helping poor residents in public housing to 38 become homeowners through resident management and ownership programs. OPPORTUNITY Enterprise zones: President Bush has called for enactment of enterprise zone legislation, to give urban and rural areas the opportunity for jobs and hope for the future. President Bush asked Congress to enact labor and capital-based incentives to create jobs and entrepreneurial activity in our most distressed communities. Job training: The President has sent to the Congress a proposal to improve the Job Training Partnership Act by targeting its resources on the poor and at risk youth and adults who most need job training to get jobs and become economically self sufficient. CIVIL RIGHTS The Bush Administration is committed to reaching out to minorities, and to striking down barriers to free and open access. The President has made it clear that this Administration will not tolerate discrimination, bigotry or bias of any kind. 39 ACTION BY THE ADMINISTRATION: Civil rights: The Administration has taken a number of actions to protect the civil rights of all Americans, including several court actions in key civil rights cases. : The President has called upon Congress to reauthorize the Commission on Civil Rights. -- The Administration endorsed the Hate Crimes Bill, which provides for the collection of data about crimes motivated by race, religion, or ethnicity. -- On March 13, Attorney General Thornburgh announced the filing of Federal housing discrimination lawsuits seeking monetary damages and civil penalties under the expanded enforcement authority of the Fair Housing Amendments Act of 1988. Disabled Americans: The Administration has reached a consensus with key Senators on legislation that would fulfill the President's commitment to seek legislation extending civil rights protections to disabled Americans. The legislation, called the Americans with Disabilities Act, would represent the most significant expansion of federal civil rights laws in the past two decades. -- The legislation would provide unprecedented protections against discrimination in the area of employment, 40 requiring reasonable accommodation be made by employers for disabled potential employees. -- All new buildings would be required to be accessible to the disabled. -- Stores, providers of services, restaurants and other public accommodations would be required to serve disabled Americans to the same extent they serve able Americans. Whistleblower protection: On April 10, the President signed S. 20, the Whistleblower Protection Act of 1989. This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. : This new law will enhance the authority of the Office of Special Counsel, and whistleblowers will also now be allowed to take their cases to the Merit Systems Protection Board. : The statute alters the legal burdens of proof, making it easier for employees to be vindicated when they are wrongfully penalized by their supervisors for whistleblowing activities. 41 ETHICS High ethical standards for all Americans are central to this Administration, and we will enforce them -- strictly, comprehensively, fairly, and to the letter and spirit of the law. ACTION BY THE ADMINISTRATION: Campaign Finance Reform: The President's comprehensive campaign finance reform proposal is designed to lessen the power of special economic interests and restore competition to American Congressional elections. Th real seeks to enhance the role of individuals parties in elections. Below are proposa -- Eliminating political action commit supported by corporations, unions or trade associations, and prohibiting such entities from paying for the overhead or administrative costs of any independent PAC. -- Strengthening political parties by increasing the amounts they can spend on behalf of congressional candidates. This source of funds would permit legislators to spend less time fundraising, would ensure that challengers have greater resources with which to challenge incumbents, and would further limit the role of special economic interests in elections. 42 -- Addressing the problem of the "permanent Congress" by reforms designed to reduce the unwarranted advantages of incumbency. Specifically, the proposals would prohibit the personal use of excess campaign funds, drastically reduce Congressional mailings under the frank, ban the rollover of campaign funds from one election cycle to the next, and legislate fair neutral criteria for the redistricting of Congressional and legislative lines that will follow the 1990 census. -- Fully disclosing all soft money spent by the political parties and all labor unions, corporations and trade associations to influence a federal election. -- Prohibition of the conversion of political contributions for personal or office use. Ethics: The President issued an Executive Order creating the President's Commission on Federal Ethics Law Reform, which submitted its recommendations to the President on March 9. Responding to the Commission's work, the President, on April 12, sent to Congress a sweeping ethics bill and simultaneously issued an Executive Order announcing ethical principles for the conduct of executive branch employees. The President's proposals include: -- Expanded financial disclosure for all three branches of government. 43 -- Deferral of tax liability when an individual is required by his or her agency to divest assets in order to avoid conflicts of interest. -- Strengthened rules against abusing the revolving door for private gain at the expense of the public trust. These rules would also apply for the first time to the legislative branch. -- A 25 percent pay raise for federal judges was proposed in the legislation submitted April 12. On July 7, the President submitted separate legislation calling for pay increases for certain specialized professionals and other senior officials in the executive branch. -- Congressional Honoraria Ban: On July 7, the President also sent to Congress legislation that calls for the elimination of Congressional honoraria by 1991, making the next Congress honoraria-free. This proposal is linked to the enactment by Congress of a pay increase for its Members, and the President will work with Congress toward this end. -- The extension of the federal statute that prohibits employees from taking actions that enhance their own financial interest to cover legislative and judicial branch employees (but not Members of Congress). -- The extension of the Independent Counsel statute to cover the Congress and the creation of an independent, non-partisan Congressional Ethics Office. 44 -- A ban on outside earned income for full-time non-career Presidential appointees in the executive branch, including non-career employees in the immediate White House Office. # # #