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Originally Processed With FOIA(s): FOIA Number: S 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: 13602 Folder ID Number: 13602-004 Folder Title: Governors Meeting 2/3/92 [OA 6096] Stack: Row: Section: Shelf: Position: G 26 17 6 3 Document No. 303262SS WHITE HOUSE STAFFING MEMORANDUM DATE: 2/1/92 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS MEETING' MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: The attached has been forwarded to the President. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 THE WHITE HOUSE WASHINGTON 82 JAN31 P8:26 January 31, 1992 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: DAVID DEMAREST TONY SNOW TS FROM: BETH HINCHLIFFE Byant SUBJECT: GOVERNOR'S MEETING I. SUMMARY On Monday, February 3, 1992, at 11:10 a.m., you will deliver remarks (15 minutes, on cards) to an audience of approximately 80 people -- including governors and cabinet members. You will be introduced by Governor John Ashcroft. II. DISCUSSION :. The remarks highlight some of the initiatives put forth in your economic growth plan -- specifically focusing on education, unfunded federal mandates, and family issues. (Hinchliffe/Nix) January 31, 1991 6 p.m. GOV4 Draft Four PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 East ROOM [ACKNOWLEDGMENTS] [jokes] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. From my point of view, you couldn't have come at a better time. It seems that everyone in America agrees on two things: First, we need to get our economy moving; second, our people are up to the challenge of remaining Number One in the world. Last Tuesday, I challenged Congress to do the right thing: pass a common-sense growth package by March 20, and pass a long- " term series of growth initiatives without delay. This package relies on some common sense-objectives: It encourages investment. It protects the value of basic " investments, like a home. It does not raise taxes. It does not increase the federal deficit. And it does not employ short-term " gimmicks that create long-term trouble. You know the political process, and you know that bipartisan goodwill in an election year lasts about as long as unrefrigerated milk. But we can't afford to play politics as usual. We've got a chance to make real progress -- right now. Today, inflation and long-term interest rates have fallen to their lowest levels in two decades. And the American people are ready for action. John F. Kennedy once wrote, "Any system of government will 2 work when everything is going well. It's the system that functions in the pinches that survives." Well, it's pinch time, and I've proposed a way in which all of us can rise to the occasion. In my State of the Union Address, I outlined a short-term growth package that takes care of the essentials: It strengthens the real-estate industry, which historically pulls us out of recessions. And it rewards success, primarily by cutting the tax on long-term capital gains. It also reforms government. It slashes away at pork- barrel projects. It holds the line on spending -- while moving money out of unnecessary programs and into vital ones. Here's what that means for you: A 13-percent increase in money available for surface transportation; a 300 percent increase in land and water Conservation Fund grants; record amounts for education -- a 15-percent increase from last year; a 27-percent increase in Head Start. My budget puts the money where it does the most good -- not where it best serves special interests. Some people complain that it doesn't do much. Well, I'm . proud of what it doesn't do. It doesn't violate the budget agreement. It doesn't raise taxes. And let me ask you: Where was the last plan you saw that did so much to get money in the right places without new spending, without new taxes, without counterproductive new regulations, without new red tape, and without new burdens on states? My program will work. You know it. I know it. The 3 American people know it. So while you're here in Washington, visit your congressional delegation. Tell them: Put politics on the shelf for six weeks. Help your country. Pass the President's package. When your Senators and Representatives return home next week for a recess, visit them again. Repeat the message -- Tell them to: Rise to the occasion. Pass the President's package. Pass it by. March 20. The pay off for you is simple: If the economy grows, you can do your jobs better. If we can slash away regulation, you can do your jobs better. If we can give you greater freedom to do what works in your states, you can do your jobs better. And if we don't do these things, you get stuck with the impossible choice: cut services or raise taxes. Frankly, you get an even larger payoff from the long-term proposals announted in my State of the Union Address. If you think of this moment in history -- after the Cold War, #ight in the middle of the information revolution -- something becomes crystal clear. We must retool America to meet the challenges of a new age, an age of international competition. Cold War policies just don't cut it. Businesses have begun retooling for competition in the world economy. State governments have adopted innovations that let them provide better services for less money. I think it's time the federal government became part of the solution, too. Let's start with one long-term goal that will make a huge 4 difference in your lives. For years and years we in Washington have talked about cutting the deficit. Well, talk time is over. The federal government is too big and it spends too much. We need real budget discipline. My long-term plan and my short- term plan provide that discipline. I want Congress to stop showering states with unfunded mandates. For businesses, or for states, mandated programs and benefits too often mean mandated deficits. An unfunded federal mandate is about as helpful for you as cement flippers are for a swimmer. If that's the kind of help you get from Washington, I'm sure you'd rather do without. So I've told Congress: If you pass mandates onto states, pay for them -- and don't raise taxes. If you don't pay, expect a veto. I want Congress to give me something you have, I don't, and I want: the line-item veto. I understand the legislator's urge to please a constituent by putting some item in the budget. I also know that this practice enrages taxpayers -- as it 'should. A line-item veto lets a President help Congress. A line-item veto lets a President say something that legislators can't say: No. I want Congress to let States apply their own resources and imaginations to important social problems. Too often you have to use a one-size-fits-all blueprint that seems perfectly reasonable in a Washington office, but looks like fiction in your home states. Thomas Jefferson called states laboratories for Democracy. 5 Well, it's time we let you do R and D. I want to give state and local governments greater flexibility in administering services. My budget proposes a revised $14.6 billion Block Grant. The Block Grant will provide states with needed flexibility to administer education, health and social services, and drug control programs. I want to focus federal policy on the crucial issue of welfare reform. The key to welfare reform lies in one simple, powerful word: Responsibility. As part of this, many states are beginning to operate with new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have responsibilities too -- to ensure that' welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout!'' I know that state welfare reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I want the federal government to redouble its efforts to help the most fundamental building block of a home, a school, a neighborhood, a city, our nation: the family. Several weeks ago, a group of big-city mayors came to the White House. Every one of them told me that they can't truly solve any of their big problems until they restore the integrity 6 of the family. So my plan looks at the fundamentals. It gives much-needed support to those raising families by increasing the personal exemption on the federal income tax by $500 per child. That's not as high as I would like, but it's what we can afford now. My plan also gives families a greater stake in the important things: health care and education. It proposes IRA reforms and tax changes that help people pay for these basics. And in response to those big-city mayors, I have formed the Commission on America's Urban Families. I asked a governor -- John Ashcroft -- to lead that commission, and to propose honest, workable reforms. A final issue: Education. The governors of this country have helped unleash a long-overdue and much needed revolution in education. I'd like to take this chance to commend the work of Governors Campbe31 and Romer on the Report of the National Council on Education Standards and Testing. The Senate has " indicated unanimous support for the recommendations, and my new budget injects new funds for research, statistics, and assessment funding that would be used to help implement those recommendations. We must now take the work we began together and take it further -- we must revolutionize America's schools. Help me send a message to Congress: Join the crusade to revolutionize American education. Pass the America 2000 education strategy. We must give every child in America a full and fair 7 opportunity to learn. There's only one way to do that: educational choice. Choice serves as a cornerstone of America 2000. Thirty states across this nation have already embraced America 2000. You can ensure that every state joins the march - - that every community become an America 2000 community -- that every kid -- even yours -- is prepared for the competitive world of the 21st century. Our education revolution -- the revolution you started in Charlottesville more than two years ago -- shows what politicians can do when they lay down their partisan swords in service to a higher cause. I hope you will serve as an example and inspiration for all of us in Washington during the next six weeks. I saw a bumper sticker the other day that expresses the message we must send to Capitol Hill: "Lead, follow, or get out of the way." Well, I've unrolled blueprints that will lead this country forward.:- States, communities and individuals have also begun -- they've joined up in ways ranging from becoming America " 2000 communities to reaching out as Points of Light. I don't want a partisan fight over my growth package. I just want us to do what's right. I'm counting on your help, because you see the problems up close: You serve as chief executives, and you know the problems that concern the people in your states. So take out your calendars. Circle March 20. Urge Congress to pass the initiatives by March 20 -- No politics; no delays; no excuses. 8 Then, inch-by-inch, day-by-day, issue-by-issue, we will move our economy, reform our schools, revive our neighborhoods, and build the America of our dreams. Thank you. May God bless you and the great nation we share. # # # # # " qu " 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: Major AD PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that the overspending, productive obscures our vision the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass because will my program, which relies on a simple principle: It" to work. I know we're in this together. So I have taken the steps I can take on my own. I'm doing what I can Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. P gave the Cargress and road map. Inline is I also laid out the only comprehensive economic recovery on the table some basic truths plan around It starts with the most basic of basies: You can't So create jobs without investment. I told Congress three ways we to can do it First, change the alternative minimum tax and pass a then I told the Congress to 15% investment tax allowance; second, implement a first home tax credit and gavethem n other ideas to encourage the real estate market; get the housing musket going again. finally, third, create a maximum longterm capital gains tax of 15.4%. You that doesn't gut defense, doesn't relax the discipline an Congressional spending, and doesn't raise tax rates. I believe mine is also the only plan on the table that will work. 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. This straightforwardplan stron sutforward plan These simple proposals can help our economy get moving. They involve plain old common sense and I want Congress to If Longuess put its mind to it, at can meet this deadline. pass them by March 20. We know Congress can do it: After all, not the press, when confronted with its own bouncing checks it managed to close the House bank in one day. In 53 days, it should be able to adopt this plan to set our these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. immediate action planis in Once our short term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus providing access, on health care reform, preserving quality and choice, while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must This is not partison casue. revolutionize America's schools. ^ Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march --- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. NYT stop enacting Second, We must get rid of the unfinanced federal government I know you've had enoughof mandates, that cripple you. that Congress can telling ins when your states and communities what to do -- and then disappear from its time to pay the bill, the scene without giving you a cent, leaving in its wake higher toenact. taxes for you ^ Well, under my plan this will stop but I need your help in telling Congress that it must take action. tougher for leaders at the state level. I'm talking about mandates I 've askedasain for There's S much more that I could stop if only Congress would giverme the same thing 43 of you have the line item veto. The part of my long. term plan addresses up Third A we must refocus ourselves on family, John Ashcroft will lead a new task force -- the Commission on America's Urban But often, the federal government make life Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with the its role to imited as we States communities and Road are action at the center we talk of The of federal & The keep 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. Jearl add I saw a bumper sticker the other day that expresses the message we must send to those 535 Capitol men and women up on the Hill: $ $500 "Lead, follow, or get out of the way." Well, I've unrolled the communities blueprints that will lead this country forward. States and Profrom individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on roll up our sleeves my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. we've got work to do. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individuál in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # BUSH 92 QUAYLE STAFFING MEMORANDUM FOR PRESIDENTIAL REMARKS DATE: January 30, 1992 East EVENT: Governors Meeting, February 3, 1992, Roosevelt Room. COMMENTS DUE: TODAY, by :00pm. ACTION: TEETER CARNEY PINKERTON Please initial, make comments, return to Mark Burstein, Teeter's Office, Twelfth Floor. If you have no comments ] please initial only, and return. Thank you. LIV Welfare wrong tone doesn't have to program light Paid For By Bush-Quayle '92 Primary Committee, Inc. Printed On Recycled Paper (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN 29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday in my State of the Union Try a Address. You know, the only State of the Union I look forward to different more than this one is the one I'll deliver this time next year. johe. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass will my program, which relies on a simple principle: It got to work. The I am rolling back I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed reformed the hands of federal tax withholding tables to pump put $25 billion back into our and The into economy this coming next year I've ordered federal agencies to get funds from the highway bill and other immediately, pro-growth spending into the economy and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax for first-time homebayers credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help -- everyone who owns a home, a business, A a farm, or an investment. They 11 be back on payrolls because means more investment, and that means jobs the A capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. logic and lessons learned over the years. These proposals will work, They involve plain old common sense and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- The government doesn't Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last that economic week is rooted in fairness, equality, opportunity, and choice, and fairness We will focus on marketplace competition, through trade and- emproving American competitiveness in order to biild a better future RED, for our children, - the workers of the future We'll focus expanding Trade and opening markets, - we'll focus on on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in More refs. the initiative concrete ways, We'll through, devements HOPE housing your states and loward Enterprise welfare reform, Zone and we'll sak POWER legislation. And we will, of course, focus on crime and drugs, in Most non have A Congress must pass my comprehensive crime bill to bring freedom control back to the streets of America. the spending live item veto LIV welfare 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government Gurden your states. simply infair imposengnew mandates that eripple you. It's absurd that Congress can tell without worrying about who has to pay for Them, requirements myour states and communities what to do Im and then taxes disappear from the scene without giving you a cent, leaving in its wake higher without giving the means to This has meant higher for you. well, this is wrong, and it would taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. stet give There's me the same much thing more that 43 of I you could have stop -- the if only line Congress item veto. would Third, we must refocus ourselves on family. John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a this movement hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a the Congress to take circle around March 20. That's Congress deadline for action on my plan. Let's all work together -- and do the right thing: No for the salu of our country, no politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. INSERT A Fourth, my budget provides for a number of initiatives which will help the States. We have increased the monies available for highways by 13 percent. We have proposed tripling the Land and Water Conservation Fund grants. We have extended the Low-Income Housing Tax Credit and Mortgage Revenue Bond program. We have provided record amounts for education -- 15 percent more than 1992 in Department of Education outlays; $600 million, or 27 percent more, for Head Start. Fifth, after consultation with States and localities, we are proposing a revised $14.6 billion Block Grant. The Block Grant will provide States with needed flexibility to administer education, health and social service, and drug control programs. Hodsoll X6190 Anderson- - subject Matter ok. - could we change some of the rhdoric to Capitalize on the "partnership w/ Govs. - more were in this together rather than "I'm doing this, ₹ im doing that." etc Steve Hart Page 2- Too early to be so caustic -strike section on House bank will need bepart support for POTUS 'S Growth Package - (And Republicans got caught in Nouse Bank troubles) too. 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMARESI ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: major AD PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 01 FROM 85:60 1 P.01 General Comment: Education section should focus on the legislation currently being considered in the House. (Hinchliffe/Nix) January 29, 1991 5 p.m. 32 JAN 29 P6: 45 GOVERNORS Draft Two PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM EAST ROOM (Anderson) [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. cut through the obstacles to growth, eliminate the clutter that the overspending, productive obscures our vision the high taxes, the regulations, the government deficits, and the red tape. Use common sense. Pass (Treas.) because my program, which relies on a simple principle: It's will 900 to work clarify detete I know we're in this together. So I have taken the stass I can take on my own I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our over the (Treas.) economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to do all Icanto keep (Treas.) (CEASA continue support monetary policy that keeps interest rates and inflation a down, while providing adequate money and credit for healthy growth A gave the Congress and road map. Mine is I also laid out the only comprehensive economic recovery on the talk Same basic truths plan around It starts with the most basic of basies: You can't So create jobs without investment. I told Congress three ways we can do it. First, to change the alternative minimum tax and pass a then I told the Congress to 15% investment tax allowance; second, implement a first home tax finally, credit and gavethem n other ideas to encourage the real estate market; gest the housive market going again. create a maximum longterm capital gains tax of 15.4%. You that doesn't gut defense, doesn't relax the discipline an Congressional spending, and doesn raise tax rates. I behive mine in also The mile slam in the table That ill mb P.02 01 FROM 85:60 1 lastchange (Treas) 2 know who this will help -- everyone who owns a home, a business, and others will (Treas.) a farm, or an investment. They 11° 11 be back on payrolls because the capital gains cut favors growth and jobs for working America. This These simple proposals can help our economy get moving. They involve plain old common sense and I want Congress to pass them by March 20. We know Congress can do it: After all(findlay If Longuss put its rund to it, or can must this deadlying not the press, When faced when confronted with its own bouncing checks it managed to close strike it with national 52 or 53? COCA held nearings the House bank in one day In 53 days, it should be able to adopt drafted COM- this plan to Get our plek legislation these basie solutions that encourage businesses to invest and and passed a (Findlzz)Itca be done bill ending the (Findlay) therefore bring people back to work.A If it doesn't act by then strike in just This on the then. implieside 18 hours, in and EBC Ede battle will be on. he's lines until Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best the people do. immediate action planis in Once our short term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. (Treas.) free and fair We will focus on marketplace competition, through/trade and to help improve the standard of living for everyone including R&D for our children -- the workers of the future. We'll focus providing access, on health care reform, preserving quality and choice, while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. P.03 01 JAN-31-1992 09:59 FROM 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. Findlay Meny of, You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must This is motapaction name revolutionize America's schools. ^ Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become educated and (Treas.) America 2000 communities -- that your kids are trained for the competitive world of the 21st century. NW store enacting Second, we must get rid the the unfinanced federal government I know you've had enough of mandates. that CELM Lewjon that Congress can telling (Findtay un conscimable ins when your states and communities what to do -- and then disappear from it> time to paythe bill the scene without giving you a cent, leaving in its make higher toenact. taxes for you^ Well, under my plan this will stop m.m. but r need your help in telling Congress that it must take action. I v for There's much more that I could stop if only Congress would given the same thing 43 of you have the line item veto. The Third we must refecus surselvos on family. John Ashcroft part of my long. term plan addresses up will lead a new task force -- the Commission on America's Urban (Petersmeyer Strong families But atten, the federal government make life Tougher for leaders Families. We must become warriors to keep families strong. It's It real are the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with the * its role inited we States and Barr are action at the certer we talk of The of federal do to keep JAN-31-1992 09:59 FROM 01 P.04 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a (Findlay) Welfare hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. Hearly add see insert(A) I saw a bumper sticker the other day that expresses the message we must send to those 535 Capitol men and women up on the Hill: $ 500 "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and community proposal individuals have also begun -- they've joined up in ways ranging Great Petersmeyer). from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on roll up. our sleeves my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. we 've got work to do. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # P.05 01 JAN-31-1992 10:00 FROM TO 94562223 P.02 JAN-30-1992 15:33 FROM UNITED STATES DEPARTMENT OF EDUCATION STATES THE OFFICE OF THE SECRETARY OF January 30, 1992 MEMORANDUM FOR PAUL KORFONTA FROM: LESLYE ARSHT SUBJECT: GOVERNOR'S SPEECH There are several points that we would like to see added to the President's remarks to the Governors: 1) The spirit of Charlottesville, (which was a SUMMIT and not a conference) was bipartisan. The President should indicate that AND that while we can all acknowledge that this is an election year, that radically changing education has been a joint goal and that the President will try very hard to keep it that way. 2) We made some important steps with the Senate (see Chamber of Commerce remarks by the President) -- as Lamar says, it doesn't go far enough, fast enough, but the Senate accepted the concept of New American Schools, provided funds for them, and we pushed to give you a controlling role in the designations. They resisted, but ultimately, they gave the Secretary of Education the authority to grant flexibility waivers in a limited number of cases. We'd like your help to expand the number of states and waivers in the House. You (the Governors) need this and I know it. The House bill and the Conference offer us an opportunity to build on the strides we've taken and, of course, my new budget seeks our original requests once more. We're going to keep coming back until radical reform is a reality. 3) Finally, the President should commend the work of Govs. Campbell and Romer on the Report of the National Council on Education Standards and Testing. This is a remarkable consensus of support from people who have often disagreed in the past. The Senate has indicated unanimous support for the recommendations and my new budget injects new funds for research, statistics, and assessment funding that would be used to help implement those recommendations. We would delete the 2nd graph on page 3 which doesn't address the real state of play and make these three points, instead. 400 MARYLAND AVE., S.W. WASHINGTON D.C. 20202 CAMP DAVID February 2, 1992 To Dave Demarest CC Samk Skinner I thought the govs were concentrating on education. This is a replay of our economic package. I have made some changes here. Please be sure all are in agreement on what we are trying to achieve with the govs. GB FROM THE PRESIDENT Asher (Hinchliffe/Nix) January 31, 1991 6 p.m. GOV4 Draft Four PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 East ROOM [ACKNOWLEDGMENTS] [jokes] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. From my point of view, you couldn't have come at a better time. It seems that everyone in America agrees on two things: First, we need to get our economy moving; second, our people are up to the challenge of remaining Number One in the world. Last Tuesday, I challenged Congress to do the right thing: pass a common-sense growth package by March 20, and pass a long- term series of growth initiatives without delay. This package relies on some common sense-objectives: It encourages investment. It protects the value of basic investments, like a home. It does not raise taxes. It does not increase the federal deficit. And it does not employ short-term gimmicks that create long-term trouble. You know the political process, and you know that bipartisan goodwill in election 13ta comodity in shout supply an year lasts about as Long as unrefrigerated milk. But we can't afford to play politics as usual. We've got a chance to make real progress -- right now. Today, inflation and long-term interest rates have fallen to begining their lowest levels in two decades. ^ And the American people are May propleted this sluggish economy is h turn ready for action. John F. Kennedy once wrote, "Any system of government will 2 work when everything is going well. It's the system that functions in the pinches that survives." Well, it's pinch time, and I've proposed a way in which all of us can rise to the occasion. In my State of the Union Address, I outlined a short-term growth package that takes care of the essentials: It strengthens the real-estate industry, which historically pulls us out of recessions. And it encourapio rewards rish today and investment success, primarily by cutting the tax on long-term capital gains and by other stimulated tax procedure. It also reforms government. It slashes away at pork- barrel projects. It holds the line on spending -- while moving money out of unnecessary programs and into vital ones. Here's what that means for you: A 13-percent increase in money available for surface transportation; a 300 percent increase in land and water Conservation Fund grants; record amounts for education -- a 15-percent increase from last year; a 27-percent increase in Head Start. My budget puts the money where it does the most good -- not where it best serves special interests. I disagnee but Some people complain that it doesn't do muchA Welk, I'm saw thys . proud of what it doesn't do. It doesn't violate the budget agreement. It doesn't raise taxes. And let me ask you: Where was the last plan you saw that did so much to get money in the right places without new spending, without new taxes, without counterpreductive new regulations, without new red tape, and without new burdens on states? It really will My program will work. You know it. I know it. The 3 American people know it. So while you're here in Washington, and pleas visit your congressional delegation, Tell them: But pelities on the shelf for six weeks. Help your country. Pass the's President package by March 20 the We mat not the deadline When your Senators and Representatives return home next week for a recess, visit them again. Repeat the message -- Tell them to: Rise to the occasion. Pass the President's package. Pass it by March 20. The pay off for you is simple: If the economy grows, you can do your jobs better. If we can slash away regulation, you can do your jobs better. If we can give you greater freedom to dò what works in your states, you can do your jobs better. And if we don't do these things, you get stuck with the impossible choice: cut services or raise taxes. Just a word about Frankly, you get an even larger payoff from the long term proposals announced in my State of the Union Address. If you think of this moment in history -- after the Cold War, right in the middle of the information revolution -- something becomes crystal clear. We must retool America to meet the challenges of a new age, an age of international competition. Cold War policies just don't cut it. Businesses have begun retooling for competition in the world economy. State governments have adopted innovations that let them provide better services for less money. I think it's time the federal government became part of the solution, too. Let's start with one long-term goal that will make a huge 4 difference in your lives. For years and years we in Washington have talked about cutting the deficit. Well, talk we must time is get over. the defect under control. The federal government is too big and it spends too much. We need real budget discipline. My long-term plan and my short- term plan provide that discipline. I want Congress to stop showering states with unfunded mandates. For businesses, or for states, mandated programs and benefits too often mean mandated deficits. An unfunded federal mandate is about as helpful for you as cement flippers are for a swimmer. If that's the kind of help you get from Washington, I'm sure you'd rather do without. Sep I've told Congress: If you pass mandates onto states, pay for them -- and don't raise taxes. If you don't pay, expect a veto. I want Congress to give me something you have, I don't, and I want: the line-item veto. I understand the legislator's urge to please a constituent by putting some item in the budget. I also know that this practice enrages taxpayers -- as it should. A line-item veto lets a President help Congress. A line-item Cor a Governm veto lets a President A say something that legislators can't say: No. I want Congress to let States apply their own resources and imaginations to important social problems. Too often you have to use a one-size-fits-all blueprint that seems perfectly reasonable in a Washington office, but looks like fiction in your home states. Thomas Jefferson called states laboratories for Democracy. 5 Well, it's time we let you do R and D. I want to give state and local governments greater flexibility in administering services. My budget proposes a revised $14.6 billion Block Grant. The Block Grant will provide states with needed flexibility to administer education, health and social services, and drug control programs. I want to focus federal policy on the crucial issue of welfare reform. The key to welfare reform lies in one simple, powerful word: Responsibility. As part of this, many states are beginning to operate with new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have responsibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout I know that state welfare reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I want the federal government to redouble its efforts to help the most fundamental building block of a home, a school, a neighborhood, a city, our nation: the family. from League of Cities Several weeks ago, a group of big city mayors Л came to the White House. Every one of them told me that they can't truly solve any of their big problems until they restore the integrity 6 of the family. So my plan looks at the fundamentals. It gives much-needed support to those raising families by increasing the personal exemption on the federal income tax by $500 per child. That's not as high as I would like, but it's what we can afford now. My plan also gives families a greater stake in the important things: health care and education. It proposes IRA reforms and tax changes that help people pay for these basics. And in response to those big-city mayors, I have formed the Commission on America's Urban Families. I asked a governor -- and form Mayon of Dallas Amith Strensz John Ashcroft to lead that commission, and to propose honest, workable reforms. A final issue: Education. The governors of this country have helped unleash a long-overdue and much needed revolution in education. I'd like to take this chance to commend the work of Governors Campbell and Romer on the Report of the National Council on Education Standards and Testing. The Senate has indicated unanimous support for the recommendations, and my new budget injects new funds for research, statistics, and assessment funding that would be used to help implement those recommendations. We must now take the work we began together and take it further -- we must revolutionize America's schools. Help me send a message to Congress: Join the crusade to revolutionize American education. Pass the America 2000 education strategy. We must give every child in America a full and fair 7 opportunity to learn. There's only one way to do that: educational choice. Choice serves as a cornerstone of America 2000. Thirty states across this nation have already embraced America 2000. You can ensure that every state joins the march - - that every community become an America 2000 community -- that every kid -- even yours -- is prepared for the competitive world of the 21st century. Our education revolution -- the revolution you started in Charlottesville more than two years ago -- shows what politicians can do when they lay down their partisan swords in service to a higher cause. I hope you will serve as an example and inspiration for all of us in Washington during the next six weeks. I saw a bumper sticker the other day that expresses the message we must send to Capitol Hill: "Lead, follow, or get out of the way.' Well, I've unrolled blueprints that will lead this country forward. States, communities and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. I don't want a partisan fight over my growth package. I just want us to do what's right. I'm counting on your help, because you see the problems up close: You serve as chief executives, and you know the problems that concern the people in your states. So take out your calondars. Circle March 20. Urge Congress to pass the initiatives by March 20 -- No politics; no delays; no excuses. 8 Then, inch-by-inch, day-by-day, issue-by-issue, we will move our economy, reform our schools, revive our neighborhoods, and build the America of our dreams. Thank you. May God bless you and the great nation we share. ###.# GOVERNORS' MEETING \ EAST ROOM MONDAY, FEBRUARY 3, 1992 \ 11 A.M. THANK YOU, GOVERNOR ASHCROFT. AND THANKS, ALSO, To THE VICE-CHAIRMAN, GOVERNOR ROMER. BoB MARTINEZ, THANK YOU FOR GIVING THE UPDATE ON OUR WAR AGAINST DRUGS. I'M GLAD TO SEE ALL OF YOU IN THE EAST ROOM THIS MORNING, BEGINNING WITH MEMBERS OF OUR CABINET. - 2 - [[ IN PARTICULAR, I WELCOME OUR NATION'S DISTINGUISHED GOVERNORS TO THE WHITE HOUSE. IT'S A PLEASURE TO HAVE YOU HERE, ALTHOUGH I HOPE THIS IS AS CLOSE TO THE OVAL OFFICE AS ANY GOVERNOR GETS FOR AT LEAST FOUR YEARS. ]] - 3 - [[ You KNOW, I SPENT SOME TIME WITH BORIS YELTSIN THIS WEEKEND. I REALLY FEEL FOR THE GUY. HIS POPULARITY HAS TUMBLED IN JUST A COUPLE OF MONTHS. HIS ECONOMY'S STRUGGLING. HE'S CATCHING FLAK FROM CRITICS ON THE RIGHT AND LEFT ABOUT EVERYTHING FROM TAXES TO DEFENSE SPENDING. Boy, I'D HATE TO BE IN HIS SHOES. ]] III - 4 - TODAY, I'D LIKE To TALK WITH YOU ABOUT THE GROWTH AGENDA I LAUNCHED LAST TUESDAY, IN MY STATE OF THE UNION ADDRESS. FROM MY POINT OF VIEW, YOU COULDN'T HAVE COME AT A BETTER TIME. IT SEEMS THAT EVERYONE IN AMERICA AGREES ON TWO THINGS: FIRST, WE NEED TO GET OUR ECONOMY MOVING; SECOND, OUR PEOPLE ARE UP To THE CHALLENGE OF REMAINING NUMBER ONE IN THE WORLD. III - 5 - LAST TUESDAY, I CHALLENGED CONGRESS TO DO THE RIGHT THING: PASS A COMMON-SENSE GROWTH PACKAGE BY MARCH 20, AND PASS A LONG-TERM SERIES OF GROWTH INITIATIVES WITHOUT DELAY. THIS PACKAGE RELIES ON SOME COMMON SENSE- OBJECTIVES: IT ENCOURAGES INVESTMENT. IT PROTECTS THE VALUE OF BASIC INVESTMENTS, LIKE A HOME. - 6 - IT DOES NOT RAISE TAXES. IT DOES NOT INCREASE THE FEDERAL DEFICIT. AND IT DOES NOT EMPLOY SHORT-TERM GIMMICKS THAT CREATE LONG-TERM TROUBLE. You KNOW THE POLITICAL PROCESS, AND YOU KNOW THAT BIPARTISAN GOODWILL IN AN ELECTION YEAR IS IN SHORT SUPPLY. BUT WE CAN'T AFFORD TO PLAY POLITICS AS USUAL. WE'VE GOT A CHANCE TO MAKE REAL PROGRESS -- RIGHT NOW. = 7 - TODAY, INFLATION AND LONG-TERM INTEREST RATES HAVE FALLEN TO THEIR LOWEST LEVELS IN TWO DECADES. MANY PEOPLE BELIEVE THIS SLUGGISH ECONOMY IS BEGINNING TO TURN. AND THE AMERICAN PEOPLE ARE READY FOR ACTION. 11 JOHN F. KENNEDY ONCE WROTE, "ANY SYSTEM OF GOVERNMENT WILL WORK WHEN EVERYTHING IS GOING WELL. IT'S THE SYSTEM THAT FUNCTIONS IN THE PINCHES THAT SURVIVES." - 8 - WELL, IT'S PINCH TIME, AND I'VE PROPOSED A WAY IN WHICH ALL OF US CAN RISE TO THE OCCASION. IN MY STATE OF THE UNION ADDRESS, I OUTLINED A SHORT-TERM GROWTH PACKAGE THAT TÄKES CARE OF THE ESSENTIALS: II ENCOURAGES INVESTMENT - -- WHICH ALLOWS US TO EXPAND BUSINESSES AND CREATE NEW ONES. - 9 - IT STRENGTHENS THE REAL-ESTATE INDUSTRY, WHICH HISTORICALLY PULLS US OUT OF RECESSIONS. AND II ENCOURAGES RISK-TAKING AND INVESTMENT BY CUTTING THE TAX ON LONG-TERM CAPITAL GAINS AND BY OTHER STIMULATIVE PROCEDURES. IT ALSO REFORMS GOVERNMENT. IT SLASHES AWAY AT PORK-BARREL PROJECTS. IT HOLDS THE LINE ON SPENDING -- WHILE MOVING MONEY OUT OF UNNECESSARY PROGRAMS AND INTO VITAL ONES. - 10 - HERE'S WHAT THAT MEANS FOR YOU: A 13-PERCENT INCREASE IN MONEY AVAILABLE FOR HIGHWAY FUNDING; 11 A 158 PERCENT INCREASE FROM LAST YEAR IN LAND AND WATER CONSERVATION FUND GRANTS; 11 RECORD AMOUNTS FOR EDUCATION -- A 15-PERCENT INCREASE FROM LAST YEAR; 11 A 27-PERCENT INCREASE IN HEAD START. - 11 - MY BUDGET PUTS THE MONEY WHERE IT DOES THE MOST GOOD -- NOT WHERE IT BEST SERVES SPECIAL INTERESTS. SOME PEOPLE COMPLAIN THAT IT DOESN'T DO MUCH. FRANKLY, I'M PROUD OF WHAT IT DOES -- IT LAYS OUT A BLUEPRINT FOR GROWTH -- AND FOR SOME OF THE THINGS IT DOESN'T DO. IT DOESN'T VIOLATE THE BUDGET AGREEMENT. IT DOESN'T RAISE TAXES. 11 - 12 - MY PROGRAM WILL WORK. So WHILE YOU'RE HERE IN WASHINGTON, VISIT YOUR CONGRESSIONAL DELEGATION. PLEASE TELL THEM: PASS THE PACKAGE BY MARCH 20. WE MUST MEET THIS DEADLINE. III JUST A WORD ABOUT THE LONG-TERM PROPOSALS ANNOUNCED IN MY STATE OF THE UNION ADDRESS. IF YOU THINK OF THIS MOMENT IN HISTORY -- AFTER THE COLD WAR, RIGHT IN THE MIDDLE OF THE INFORMATION REVOLUTION -- SOMETHING BECOMES CRYSTAL CLEAR. - 13 - WE MUST RETOOL AMERICA TO MEET THE CHALLENGES OF A NEW AGE, AN AGE OF INTERNATIONAL COMPETITION. COLD WAR POLICIES JUST DON'T CUT IT. BUSINESSES HAVE BEGUN RETOOLING FOR COMPETITION IN THE WORLD ECONOMY. STATE GOVERNMENTS HAVE ADOPTED INNOVATIONS THAT LET THEM PROVIDE BETTER SERVICES FOR LESS MONEY. I THINK IT'S TIME THE FEDERAL GOVERNMENT BECAME PART OF THE SOLUTION, TOO. - 14 - LET'S START WITH ONE LONG-TERM GOAL THAT WILL MAKE A HUGE DIFFERENCE IN YOUR LIVES. FOR YEARS AND YEARS WE IN WASHINGTON HAVE TALKED ABOUT CUTTING THE DEFICIT. WE MUST GET THE DEFICIT UNDER CONTROL. THE FEDERAL GOVERNMENT IS TOO BIG AND IT SPENDS TOO MUCH. WE NEED REAL BUDGET DISCIPLINE. MY LONG-TERM PLAN AND MY SHORT-TERM PLAN PROVIDE THAT DISCIPLINE. - 15 - I WANT CONGRESS TO STOP SHOWERING STATES WITH UNFUNDED MANDATES. FOR BUSINESSES, OR FOR STATES, MANDATED PROGRAMS AND BENEFITS TOO OFTEN MEAN MANDATED DEFICITS. I'VE TOLD CONGRESS: IF YOU PASS MANDATES ONTO STATES, PAY FOR THEM -- AND DON'T RAISE TAXES. - 16 - I WANT CONGRESS TO GIVE ME SOMETHING YOU HAVE, I DON'T, AND I WANT: THE LINE-ITEM VETO. I UNDERSTAND THE LEGISLATOR'S URGE TO PLEASE A CONSTITUENT BY PUTTING SOME ITEM IN THE BUDGET. I ALSO KNOW THAT THIS PRACTICE ENRAGES TAXPAYERS -- AS IT SHOULD. A., LINE- ITEM VETO LETS A PRESIDENT (or A GOVERNOR) SAY SOMETHING THAT LEGISLATORS FIND HARD TO SAY: No. I'll - 17 - I WANT CONGRESS TO LET STATES APPLY THEIR OWN RESOURCES AND IMAGINATIONS TO IMPORTANT SOCIAL PROBLEMS. Too OFTEN YOU HAVE TO USE A ONE-SIZE-FITS- ALL BLUEPRINT THAT JUST DOESN'T FIT OUTSIDE THE BELTWAY. THOMAS JEFFERSON CALLED STATES LABORATORIES FOR DEMOCRACY. WELL, IT'S TIME WE LET YOU DO R AND D. - 18 - I WANT TO GIVE STATE AND LOCAL GOVERNMENTS GREATER FLEXIBILITY IN ADMINISTERING SERVICES. MY BUDGET PROPOSES A REVISED $14.6 BILLION BLOCK GRANT. THE BLOCK GRANT WILL PROVIDE STATES WITH NEEDED FLEXIBILITY TO ADMINISTER EDUCATION, HEALTH AND SOCIAL SERVICES, AND DRUG CONTROL PROGRAMS. - 19 - I WANT TO FOCUS FEDERAL POLICY ON THE CRUCIAL ISSUE OF WELFARE REFORM. THE KEY TO WELFARE REFORM LIES IN ONE SIMPLE, POWERFUL WORD: RESPONSIBILITY. MANY STATES HAVE BEGUN TO REFORM WELFARE WITH RESPONSIBILITY IN MIND. THEY BELIEVE THAT WHEN HEALTHY ADULTS RECEIVE GOVERNMENT ASSISTANCE, THEY HAVE RESPONSIBILITIES TO THE AMERICAN TAXPAYERS WHO FUND THEM: RESPONSIBILITIES TO SEEK WORK, EDUCATION, OR JOB TRAINING. - 20 - WE ALSO HAVE RESPONSIBILITIES TO THOSE IN THE SOCIAL SAFETY NET. WE HAVE A RESPONSIBILITY TO ENSURE THAT WELFARE IS A TEMPORARY SAFETY NET, NOT A GUARANTEED LIFESTYLE. 11 So MY ADMINISTRATION WILL DO WHATEVER IT CAN TO HELP YOU REFORM YOUR SYSTEMS. IF YOU NEED A WAIVER OF FEDERAL REGULATIONS TO REFORM YOUR SYSTEM, WE'LL GET YOU A WAIVER AS QUICKLY AS WE CAN. 111 - 21 - I WANT THE FEDERAL GOVERNMENT TO REDOUBLE ITS EFFORTS TO HELP THE MOST FUNDAMENTAL BUILDING BLOCK OF A HOME, A SCHOOL, A NEIGHBORHOOD, A CITY, OUR NATION: THE FAMILY. SEVERAL WEEKS AGO, A GROUP OF MAYORS FROM THE NATIONAL LEAGUE OF CITIES CAME TO THE WHITE HOUSE. EVERY ONE OF THEM TOLD ME THAT THEY CAN'T SOLVE ANY OF THEIR BIG PROBLEMS UNTIL THEY RESTORE THE INTEGRITY OF THE FAMILY. - 22 - So MY PLAN LOOKS AT THE FUNDAMENTALS. IT GIVES MUCH-NEEDED SUPPORT TO THOSE RAISING FAMILIES BY INCREASING THE PERSONAL EXEMPTION ON THE FEDERAL INCOME TAX BY $500 PER CHILD. THAT'S NOT AS HIGH AS I WOULD LIKE, BUT IT'S WHAT WE CAN AFFORD NOW. - 23 - MY PLAN ALSO GIVES FAMILIES A GREATER STAKE IN THE IMPORTANT THINGS: HEALTH CARE AND EDUCATION. IT PROPOSES IRA REFORMS AND TAX CHANGES THAT HELP PEOPLE PAY FOR THESE BASICS. - 24 - AND IN RESPONSE TO THOSE BIG-CITY MAYORS, I HAVE FORMED THE COMMISSION ON AMERICA'S URBAN FAMILIES. I'VE ASKED MISSOURI GOVERNOR JOHN ASHCROFT AND FORMER DALLAS MAYOR ANNETTE STRAUSS TO LEAD THAT COMMISSION, AND TO PROPOSE HONEST, WORKABLE REFORMS. A FINAL ISSUE: EDUCATION. THE GOVERNORS OF THIS COUNTRY HAVE HELPED UNLEASH A LONG-OVERDUE AND MUCH NEEDED REVOLUTION IN EDUCATION. - 25 - I'D LIKE TO TAKE THIS CHANCE TO COMMEND THE WORK OF GOVERNORS CAMPBELL AND ROMER ON THE REPORT OF THE NATIONAL COUNCIL ON EDUCATION STANDARDS AND TESTING. THE SENATE HAS INDICATED UNANIMOUS SUPPORT FOR THE RECOMMENDATIONS, AND MY NEW BUDGET INJECTS NEW FUNDS FOR RESEARCH, STATISTICS, AND ASSESSMENT FUNDING THAT WOULD BE USED TO HELP IMPLEMENT THOSE RECOMMENDATIONS. - 26 - WE MUST NOW TAKE THE WORK WE BEGAN TOGETHER AND TAKE IT FURTHER -- WE MUST REVOLUTIONIZE AMERICA'S SCHOOLS. HELP ME SEND A MESSAGE To CONGRESS: JOIN THE CRUSADE To REVOLUTIONIZE AMERICAN EDUCATION. PASS THE AMERICA 2000 EDUCATION STRATEGY. - 27 - WE MUST GIVE EVERY CHILD IN AMERICA A FULL AND FAIR OPPORTUNITY TO LEARN. THERE'S ONLY ONE WAY TO DO THAT: EDUCATIONAL CHOICE. CHOICE SERVES AS A CORNERSTONE OF AMERICA 2000. THIRTY STATES ACROSS THIS NATION HAVE ALREADY EMBRACED AMERICA 2000. You CAN ENSURE THAT EVERY STATE JOINS THE MARCH -- THAT EVERY COMMUNITY BECOMES AN AMERICA 2000 COMMUNITY -- THAT EVERY KID IS PREPARED FOR THE COMPETITIVE WORLD OF THE 21st CENTURY. - 28 - OUR EDUCATION REVOLUTION -- THE REVOLUTION YOU STARTED IN CHARLOTTESVILLE MORE THAN TWO YEARS AGO -- SHOWS WHAT POLITICIANS CAN DO WHEN THEY LAY DOWN THEIR PARTISAN SWORDS IN SERVICE TO A HIGHER CAUSE. I HOPE YOU WILL SERVE AS AN EXAMPLE AND INSPIRATION FOR ALL OF US IN WASHINGTON DURING THE NEXT SIX WEEKS. - 29 - I DON'T WANT A PARTISAN FIGHT OVER MY GROWTH PACKAGE. I JUST WANT US TO DO WHAT'S RIGHT. I'M COUNTING ON YOUR HELP, BECAUSE YOU SEE THE PROBLEMS UP CLOSE: You SERVE AS CHIEF EXECUTIVES, AND YOU KNOW THE PROBLEMS THAT CONCERN THE PEOPLE IN YOUR STATES. - 30 - URGE CONGRESS TO PASS THE INITIATIVES BY MARCH 20. THEN, INCH-BY-INCH, DAY-BY-DAY, ISSUE-BY-ISSUE, WE WILL MOVE OUR ECONOMY, REFORM OUR SCHOOLS, REVIVE OUR NEIGHBORHOODS, AND BUILD THE AMERICA OF OUR DREAMS. THANK YOU. MAY GOD BLESS YOU AND THE GREAT NATION WE SHARE. # # # # # Revised reasion is GOVERNOR. ST (all com ments taken except #2 ontheeducation memo, last page (Hinchliffe/Nix) January 31, 1991 2 p.m. GOVERNOR. ST Draft Three PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 East Room [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the overspending, the counterproductive regulations, and the red tape. Use common sense. Pass my program because It will work. I know we're in this together. So I have taken the steps I can take on my own. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy over the next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to do all I can to keep interest rates and inflation down while providing adequate money and credit for healthy growth. I also gave the Congress a road map. Mine is the only comprehensive economic recovery plan on the table that doesn't gut defense, doesn't relax the discipline on Congressional spending, and doesn't raise tax rates. I believe mine is also the only plan on the table that will work. It starts with some basic truths. You can't create jobs 2 without investment, so I told Congress to change the alternative minimum tax and pass a 15% investment tax allowance. Then, I told Congress to implement a first home tax credit, and gave them other ideas to get the housing market going again. Finally, I told them to create a maximum longterm capital gains tax of 15.4 percent. You know who this last change will help -- everyone who owns a home, a business, a farm, or an investment. In an international economy, we need to do everything we can to stay competitive -- and none of our major competitors taxes capital gains nearly has much as we do. We're in this together. We have in front of us a small window in which we can get Congressional action on a this comprehensive short-term growth package. Everything points to quick action. Look, if we get going within the next few weeks, we can build upon sound fundamentals in the economy like rising exports; falling inflation; and interest rates. You know first- hand the importance of growth. When your economies grow, you can do your jobs. When your economies flatten out, you have to face the toughest choice -- cutting services or raising taxes. This straightforward plan can help our economy get moving. I want Congress to pass it by March 20. The legislation went to the Hill the day after my State of the Union address, so there are no excuses for inaction. If we could win the Gulf War in 45 days, and the land war in four days, Congress can pass my growth package by March 20. In fact, when Congress was confronted by the prospect of a national rail strike, it held hearings, drafted 3 complex legislation, and passed a law -- all within 18 hours. So: let's get moving by March 20. You are the ones out there on the front-lines every day. You need to press Congress to get this short-term package moving -- and to get our economy growing. You can take advantage of being in Washington and head over to the Hill to visit your delegations. And when Congress goes home on its break next week -- get together with them then. I know you're also looking beyond the short-term -- and, of course, so am I. This is a place where we can really benefit from seeing states as the laboratories for American democracy. We need to take a new, long, hard look at our country and our long-term future. Look around us. The rest of the world is retooling itself to cope with the end of the Cold War. Businesses and state governments are adopting innovations to deal with the emerging new world. So it only makes sense that the federal government must join them -- must tackle the challenge of making America competitive, and keeping America Number One. So, once our short-term action plan is in place, we have to move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in opportunity and choice. We will focus on marketplace competition, through free and fair trade and R&D, to help improve the standard of living for everyone, including our children -- the workers of the future. We'll focus on health care reform, providing access, preserving quality and choice, while controlling costs. We'll focus on 4 empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs -- Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. But there are five specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. Many of you were there at the creation of this extraordinary reform. The Governors' Summit in Charlottesville was an historic example of nonpartisan, forward-looking cooperation. Changing education has been a joint goal for all of us, regardless of party, and it must remain SO. I'd like to take this chance to commend the work of Governors Campbell and Romer on the Report of the National Council on Education Standards and Testing. This is a remarkable consensus of support. The Senate has indicated unanimous support for the recommendations, and my new budget injects new funds for research, statistics, and assessment funding that would be used to help implement those recommendations. We must now take the work we began together and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are prepared for the competitive world of the 21st century. 5 States and communities are at the center of the action when we talk of education. The federal government needs to keep its role limited as we revolutionize America's education system. But often, the federal government makes life tougher for leaders like you at the state level. I'm talking about mandates. We must get the federal deficit under control, and stop enacting unfinanced federal government mandates. I know you've had enough of Congress telling your states and communities what to do -- and then disappearing from the scene when it's time to pay the bill, leaving higher taxes for you to enact. I've made it clear: If Congress passes a mandate, it should come up with the money -- without raising taxes. If it tries the old mandate trick, I'll send it a veto. The third part of my long-term plan addresses the family. I believe that my plan to increase the personal tax exemption by $500 for each child will help families across this land. In addition, John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. Strong families are the only real way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have responsibilities too -- to ensure that welfare is a temporary 6 safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state welfare reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. Fourth, my budget provides for a number of initiatives which will help the states. We have increased the monies available for highways by 13%. We have proposed tripling the Land and Water Conservation Fund grants. We have extended the Low-Income Housing Tax Credit and Mortgage Revenue Bond program. We have provided record amounts for education -- 15% more than 1992 in the Department of Education outlays; $600 million, or 27% more, for Head Start. And fifth, after consultation with states and localities, we are proposing a revised $14.6 billion Block Grant. The Block Grant will provide states with needed flexibility to administer education, health and social services, and drug control programs. I saw a bumper sticker the other day that expresses the message we must send to Capitol Hill: "Lead, follow, or get out of the way. " Well, I've unrolled the blueprints that will lead this country forward. States, communities and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. I've made it clear that I don't want a partisan fight over my growth package, and I hope Congress will cooperate in doing 7 what we all know is right. The nation's governors certainly have shown that you can tackle tough problems if you agree to put partisanship aside. Our national education strategy would not exist if you hadn't decided to do the right thing, and resist the temptation to get involved in partisan combat. You know the challenges of providing services, meeting budgets, and working together with people of all parties, all beliefs. You can show the nation the way to work together on the economy. Take out your calendars. Put a circle around March 20. That's the day we will begin. When you leave Washington and spread across this nation, take with you the urgency of our nation's need for action -- promote this growth plan, call for this growth plan, demand this growth plan. Tell your Congressional delegations, regardless of party to pass my initiatives by March 20 -- No politics; no delays; no excuses. Then, inch-by-inch, day-by-day, issue-by-issue, we will move our economy, reform our schools, revive our neighborhoods, and build the America of our dreams. Thank you. May God bless you and the great nation we share. # # # # # 8 TO: TONY FROM: BETH Okay, here's the latest version -- obviously it's long, but this one contains all the rewrites suggested in your memo, along with the new sections, etc. suggested in staffing. (N.B. The fourth and fifth points that were added in staffing to the long- range discussion add a lot of length.) I'll run off to my appointment while you're looking this over -- I'll be back about 4:30 to pick up with the next stage. Thanks. 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER senty DARMAN PORTER on ther way BRADY ROGICH N/C BROMLEY SMITH V/V CARD FINDLAY SNOW DEMAREST ANDERSON FITZWATER GRAY BOSKIN KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: / comment (OCA) Pg 4 PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN 29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family, John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that OCA) process easier and quicker for every state that asks our help. upper saw a bumper sticker the other day that expresses the Donte message we must send to those 535 men and women up on the Hill: Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM 92 JAN 30 A/O: 16 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST ANDERSON FITZWATER GRAY BOSKIN KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office To NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 92 JAN29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to when faced pass them by March 20. We know Congress can do it: after all, with a when confronted with its own bouncing checks, it managed to close na tional rai the House bank in one day. In 53 days, it should be able to adopt strike, it held these basic solutions that encourage businesses to invest and It can be dove. therefore bring people back to work. If it doesn't act by then hearings, drafted this I'll step in, and the battle will be on. implies complaint passed edidad c he's on Americans want Congress to act and then get out of the way. bill sidelines When it comes to the important things -- building a business, the ending strive until supporting a family, creating a future, solving a problem -- then in just Washington does not know best -- the people do. 18 hours. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government unconscionable mandates that cripple you. It's absurd that Congress can tells s your states and communities what to do -- and then disappear/ from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family, John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what welfare Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # SENT BY:The TICKET CENTER ; 1-30-92 : 16:05 : LEGISLATIVE AFFAIRS- 6218;# 9 303262SS Document No. 92 JAN 30 WHITE HOUSE STAFFING MEMORANDUM 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST ANDERSON FITZWATER GRAY BOSKIN KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: Pg z - Too early to Be so CAUSTIC - strike section FOR Potus's Growth PACKAge - (AND - Republicans on House bank. - we'll NeeD Dipart support got too. caught iN House BANK troubles) PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 1/20/92 SENT BY:The TICKET CENTER ; 1-30-92 ; 16:06 ; LEGISLATIVE AFFAIRS- 6218;#10 (Hinchliffe/Nix) January 29, 1991 5 p.m. 32 JAN 29 P6: 45 GOVERNORS Draft Two PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You SENT BY:The TICKET CENTER ; 1-30-92 ; 16:06 ; LEGISLATIVE AFFAIRS- 6218;#11 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do its after all, Delate when confronted with its own bouncing checks, it managed to elese the House bank in one day In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem ---- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness. equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. SENT BY:The TICKET CENTER ; 1-30-92 ; 16:07 ; LEGISLATIVE AFFAIRS- 6218;#12 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further - we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the compatitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family. John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with SENI BY:ine PICKET CENTER ; 1-30-92 ; 16:07 ; LEGISLATIVE AFFAIRS- 6218;#13 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put at circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing ... Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # 1 CEO (CEA?) (Hinchliffe/Nix) January 29, 1991 5 p.m. 92 JAN 30 P3. 03 GOVERNORS Draft Two PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt Room [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to support, a continue monetary policy that keeps interest rates and inflation down, while provid ung adequate money credit for healthy growth I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family. John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way. Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # SENT BY:Xerox Telecopier 7020 ; 1-30-92 :12:46PM ; 4562983- 6218;# 1 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM 1/30/92 4:00PM, TODAY, JAN. 30 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER GRAY BOSKIN KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: Subject we matter change o.K. some - of the rhetoric to Capitalize on could the "partnership "with your - more PHILLIP we're D. BRADY in this to sither rather than "I'm Assistant to the President doine this I'm Saine to do that" etc. Ext. 2702 and Staff Secretary SENT BY:Xerox Telecopier 7020 ; 1-30-92 :12:47PM ; 4562983- 6218;# 2 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN 29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM East Room [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You SENT BY:Xerox Telecopier 7020 ; 1-30-92 :12:47PM ; 4562983- 6218;# 3 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem --- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. SENT BY:Xerox Telecopier 7020 ; 1-30-92 :12:48PM ; 4562983- 6218;# 4 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march - that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop - but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family. John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with SENT BY:Xerox Telecopier 7020 ; 1-30-92 :12:48PM ; 4562983- 6218;# 5 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing ... Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. SENT BY:Xerox lelecopier 7020 ; 1-30-92 ; 8:50AM ; The White House- OPD:# 1 303262SS Document No. 92 JAN 30 P5: 07 WHITE HOUSE STAFFING MEMORANDUM 1/30/92 4:00PM, TODAY, JAN. 30 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: See changes and attachment from Education. Thanks. Paul Korfonta PK 01/30/92 PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 SENT BY:Xerox Telecopier 7020 ; 1-30-92 ; 8:51AM ; The White House- OPD:# 2 (OCA). Comment section sistion should Eocus House being on the sidered (Hinchliffe/Nix) Currently the January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN 29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt Room [ACKNOWLEDGMENTS) I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the (Treas.) government deficits, and the red tape. Use common sense. Pass clarity It's got to work. delete my program, which relies on a simple principles I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our overle Treasure) economy this next year; I've ordered federal agencies to get (Treasury) pro-growth spending into the economy, and I've pledged to V do all I can to keep (Treasury) continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You SENT BY:Xerox Telecopier 7020 ; 1-30-92 ; 8:51AM ; The White House- OPD:# 3 last change 2 (Treasury) know who this will help -- everyone who owns a home, a business, and others will a farm, or an investment. They I be back on payrolls because the capital gains cut favors growth and jobs for working America. (Findlay) When faced These simple proposals can help our economy get moving. with a national railstrike, it They involve plain old common sense -- and I want Congress to drafted heldhearings completed pass them by March 20. We know Congress can do it: after all, legislation, and passed a billending the when confronted with its own bouncing checks, it managed to close 18 strike injust hours. is it 52 the House bank in one day. In 53 days, it should be able to adopt or these basic solutions that encourage businesses to invest and 53 (Findlay) It can be done. (Findlay) This implies therefore bring people back to work. / If it doesn't act by then he's on sidelines until then I'll step in9 and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to (Treasur) ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality. opportunity, and choice. free and help We will focus on marketplace competition, through trade and fair to through for they R&D the our children -- the workers of the future. We'll focus living 5 yone on health care reform, preserving quality and choice while including controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. SENT BY:Xerox Telecopier 7020 ; 1-30-92 ; 8:52AM ; The White House- OPD:# 4 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. 1/30 You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities reducated become and (Treasury) America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. (Findlay)unconscionable It's absurd that Congress can (Findlay) tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family, John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with SENT BY:Xerox Telecopier 7020 ; 1-30-92 : 8:52AM ; The White House- OPD:# 5 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a (Findlay) welfare hand up, not a handout. I know that state /reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing ... Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # 303262SS Document No. 92 JAN WHITE HOUSE STAFFING MEMORANDUM 1/30/92 DATE: 4:00PM, TODAY, JAN. 30 ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH CARD FINDLAY SNOW DEMAREST ANDERSON FITZWATER GRAY BOSKIN KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: See comments PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 92 JAN29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family. John Ashcroft will lead a new task force -- the Commission on America's Urban Families. We must become warriors to keep families strong. It's the only way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. see insert next page I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing ... Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # 303262SS Document No. WHITE HOUSE STAFFING MEMORANDUM JAN 30 P4: 46 1/30/92 4:00PM, TODAY, JAN. 30 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank you. RESPONSE: Please page see 3 Thank you gives PHILLIP D. BRADY Assistant to the President and Staff Secretary Ext. 2702 (Hinchliffe/Nix) January 29, 1991 5 p.m. GOVERNORS Draft Two 32 JAN 29 P6: 45 PRESIDENTIAL REMARKS: GOVERNORS' MEETING Monday, February 3, 1992 Roosevelt ROOM [ACKNOWLEDGMENTS] I'm glad to talk with you about the growth agenda I launched last Tuesday, in my State of the Union Address. You know, the only State of the Union I look forward to more than this one is the one I'll deliver this time next year. I issued a challenge for Congress to do the right thing. Cut through the obstacles to growth, eliminate the clutter that obscures our vision -- the high taxes, the tight regulations, the government deficits, and the red tape. Use common sense. Pass my program, which relies on a simple principle: It's got to work. I'm doing what I can. Specifically: I've set a moratorium on federal regulations that could hinder growth; I've changed federal tax withholding tables, to pump $25 billion back into our economy this next year; I've ordered federal agencies to get pro-growth spending into the economy, and I've pledged to continue monetary policy that keeps interest rates and inflation down. I also laid out the only comprehensive economic recovery plan around. It starts with the most basic of basics: You can't create jobs without investment. I told Congress three ways we can do it. First, change the alternative minimum tax and pass a 15% investment tax allowance; second, implement a first home tax credit and other ideas to encourage the real estate market; third, create a maximum longterm capital gains tax of 15.4%. You 2 know who this will help -- everyone who owns a home, a business, a farm, or an investment. They'll be back on payrolls because the capital gains cut favors growth and jobs for working America. These simple proposals can help our economy get moving. They involve plain old common sense -- and I want Congress to pass them by March 20. We know Congress can do it: after all, when confronted with its own bouncing checks, it managed to close the House bank in one day. In 53 days, it should be able to adopt these basic solutions that encourage businesses to invest and therefore bring people back to work. If it doesn't act by then I'll step in, and the battle will be on. Americans want Congress to act and then get out of the way. When it comes to the important things -- building a business, supporting a family, creating a future, solving a problem -- Washington does not know best -- the people do. Once our short-term ideas are in place, we can move ahead to ensure our growth endures. The long-term plan I proposed last week is rooted in fairness, equality, opportunity, and choice. We will focus on marketplace competition, through trade and R&D, for our children -- the workers of the future. We'll focus on health care reform, preserving quality and choice while controlling costs. We'll focus on empowering the poor in concrete ways, through HOPE housing and Enterprise Zone legislation. And we will, of course, focus on crime and drugs - - Congress must pass my comprehensive crime bill to bring freedom back to the streets of America. 3 But there are three specific parts of my long-range plan that I want to discuss with you today, because they're essential parts of your own states' futures. I want to begin with something close to all of us here: education, specifically America 2000. You were there at the creation of this extraordinary reform. The Governors' Conference in Charlottesville was an historic example of bipartisan, forward-looking cooperation. We must take the work we began together there and take it further -- we must revolutionize America's schools. Thirty states across this nation have already embraced America 2000. You can ensure that your state joins the march -- that your communities become America 2000 communities -- that your kids are trained for the competitive world of the 21st century. Second, we must get rid of the unfinanced federal government mandates that cripple you. It's absurd that Congress can tell your states and communities what to do -- and then disappear from the scene without giving you a cent, leaving in its wake higher taxes for you. Well, under my plan this will stop -- but I need your help in telling Congress that it must take action. There's much more that I could stop if only Congress would give me the same thing 43 of you have -- the line item veto. Third, we must refocus ourselves on family, John Ashcroft will lead a new task force -- the Commission on America's Urban Strong families Families. We must become warriors to keep families strong. are real the only A way we can keep strong our cities, states, and country. As part of this, many states are beginning to operate with 4 new assumptions regarding welfare. They believe that when healthy adults receive government assistance, they have responsibilities to the American taxpayers who fund them: responsibilities to seek work, education, or job training. For their sake, we have respon- sibilities too -- to ensure that welfare is a temporary safety net, not a guaranteed lifestyle, because what Americans want is a hand up, not a handout. I know that state reform requires that certain federal regulations be waived, and I will make that process easier and quicker for every state that asks our help. I saw a bumper sticker the other day that expresses the message we must send to those 535 men and women up on the Hill: "Lead, follow, or get out of the way." Well, I've unrolled the blueprints that will lead this country forward. States and individuals have also begun -- they've joined up in ways ranging breat from becoming America 2000 communities to reaching out as Points of Light. Now I need your help. Take out your calendars. Put a circle around March 20. That's Congress' deadline for action on my plan. Let's all work together -- and do the right thing: No politics; no delays; no excuses. Walt Whitman, the great poet of the American spirit, once wrote: "I hear America singing Each singing what belongs to him or her and to none else." When we take these steps to liberate America's genius, the great choir will sing again, each individual in this country adding his or her voice to our stirring chorus of greatness. May God bless this nation we share. # # # # # 303262SS Document No. 92 JAN 31 P5: 25 WHITE HOUSE STAFFING MEMORANDUM 1/30/92 4:00PM, TODAY, JAN. 30 DATE: ACTION/CONCURRENCE/COMMENT DUE BY: PRESIDENTIAL REMARKS: GOVERNORS' MEETING MONDAY, FEBRUARY 3, 1992 SUBJECT: ROOSEVELT ROOM ACTION FYI ACTION FYI VICE PRESIDENT HORNER SKINNER MCCLURE SCOWCROFT PETERSMEYER DARMAN PORTER BRADY ROGICH BROMLEY SMITH FINDLAY CARD SNOW DEMAREST ANDERSON FITZWATER BOSKIN GRAY KAUFMAN HOLIDAY REMARKS: Please provide comments/edits on the attached directly to Tony Snow, Rm. 122, x2930, with a copy to this office NO LATER THAN 4:00PM, TODAY, JANUARY 30. Thank ýou. RESPONSE: focus Mone on education of health care of appointm PHILLIP D. BRADY Assistant to the President George Bush, 1992 Administration of George Bush, 1992 / Feb. 3 195 is each time a step President Bush. That's the last question. Now, we all know the political process, that the Common- I'm awful sorry; Marlin is really looking nerv- old. This is still a particularly people sitting around this table. ous. [Laughter] Thank you very much. And you know that in an election year of this got to take care of magnitude, bipartisan good will is in basic it carefully so you Note: The President's 120th news conference short supply. But we really cannot afford pol- y we're trying to- began at 1:37 p.m. at Camp David, MD. itics as usual. I think we have a realistic win- and have a dialog. President Yeltsin spoke in Russian, and his with all the heads dow here of opportunity, a chance to make remarks were translated by an interpreter. tries; we do. I be- real progress and to do it now. And maybe I'm a little optimistic on this one, but I do alth will be strong- sense that Members on both sides of the aisle on Capitol Hill want action now. I've 1 tells me we've got Remarks and a Question-and-Answer watched it and listened to the debate in the question because Session With the National last few days, and that's my feeling. appointment with Governors' Association ess at the Russian Inflation and long-term interest rates are February 3, 1992 at their lowest level in two decades. That's lly do have to go. good in terms of the recovery that inevitably lent Yeltsin The President. I hate to interrupt your former colleague and now mine, Bob Mar- is going to ensue. And I think more and more if you gentlemen tinez. I heard a little of that, and I think there we're beginning to hear people say this slug- ersonal relationship is some room for optimism. But I also think, gish economy is turning around. And cer- u've worked close- as John said, "Well, we've got a long way tainly the American people are ready for ac- bachev. tion. to go." it's well-known that I want to just make some opening com- John Kennedy once wrote, "Any system of tionship with Mr. ments about the overall policies I spoke government will work when everything is on respect. It be- about the other night. And then I understand going well. It's the system that functions in can only speak for we'll have a Q&A session which I hope will the pinches that survives." Well, it's pinch ation, but the visits be statements and positions from you as well time. And I have proposed a way in which dent Yeltsin before as inquiry of me. I've learned from these ses- all of us can rise to the occasion. y pleasant. I think sions. But let me just make some remarks In the State of the Union Address, I out- lerstanding. I have on where we are in our overall economy. lined a short-term growth package that does y heart about what I salute the members of the Cabinet that take care of the essentials. And it encourages to do. And I con- are here, but especially our visiting Gov- investment which allows us to expand busi- ernors. It seems that everyone in this country nesses and create new ones. And I'm talking onsider that I was agrees on two things: First, that we need to here mainly about creation of new small busi- ; a political person get the economy moving, and second, that ness. It strengthens the real estate industry met George Bush. our people are up to the challenge of remain- which historically has led us out of recessions other, have been ing number one in the world. I do not believe in troubled times. And it encourages ut 2 years at least. for a minute this is a country in decline. If risktaking and investment by cutting the tax 1 I was in the oppo- you doubt it, go talk to any single world lead- on long-term capital gains and by some other d then, even then, er. stimulative procedures. It also reforms Gov- ranging talent, his Last Tuesday, I really made a challenge ernment. We're going after a bunch of pork- a person. I'm just to the Congress to pass what I feel is a com- barrel projects. It holds the line on spending by his wisdom. I monsense growth package and do it by while moving money out of unnecessary pro- ualities not only as March 20th, and pass a long-term series of grams and into vital ones. growth initiatives without delay. So, we had And here's what I think it means for you: , as a person, as a are of the United it divided short term and long term. The A 13-percent increase in money available for package relies on some commonsense objec- highway funding; a 158-percent increase e now been formed tives. It encourages investment. It protects from last year in land and water conservation k quite frequently the value of basic investments, like a home. fund grants; record amounts for education, And it does not raise Federal taxes. It does .1 other on the tele- a 15-percent increase from last year; and a not increase the Federal deficit. And it say "George"; and 27-percent increase in Head Start. These doesn't employ short-term gimmicks that proposals will make every 4-year-old eligible create long-term trouble. for Head Start, every one. 196 Feb. 3 / Administration of George Bush, 1992 I believe the budget puts the money where stand the Legislature's urge to please a con- it does the most good. Now, some complain, stituent by putting something in the budget. clearly, that it doesn't do much. I am proud I was there. I was a Member of a Congress. of what it does. It lays out a blueprint for And I also know that that practice of bending growth. And for some of the things it doesn't to the constituents' will on every project en- do, deserve some credit. It does not violate rages taxpayers across the country, as well the budget agreement which is the only con- it should. So, I will keep repeating that a line- straint in existence on discretionary Federal item veto lets a President or a Governor say spending. And it doesn't raise taxes. And I something that's very hard to say, and that think the program will work. And so while is, no. you're here, my pitch would be to visit the I want the Congress to let the States sup- congressional delegations and urge them to ply their own resources to important social move by March 20th. I really believe that programs, apply their imaginations. And too deadline should be met. often we have this one-size-fits-all blueprint Just a word about the long-term proposals. that just doesn't fit outside of here, outside If you think of this moment in history, after of this beltway. the cold war, right in the middle of the infor- Jefferson called the States laboratories. We mation revolution where we are, something referred to that at the summit, educational becomes crystal clear: We've got to retool summit. Well, it's time we let the States do America to meet the challenges of a new age, this R&D, get going on innovation. And I and that's an age of international com- want to give State and local governments petition. Cold-war policies just simply are not greater flexibility in administering services. going to get the job done. And that's why we propose a revised $14.6 Now, businesses have begun retooling for billion block grant. And that grant will pro- competition in the world economy. State gov- vide the States with needed flexibility to ad- ernments have adopted innovations that let minister education and health and social them provide better services for less money. services and the drug program, some of And I believe that it's time the Federal Gov- which I guess Bob Martinez was talking ernment becomes part of that solution, too. about. So, let's start with one long-term goal that I want to focus the Federal policy on cru- will make a huge difference in your lives. For cial issues like welfare reform. And the key years and years we in Washington have talked to that lies in one real simple word, and that about cutting the deficit. And I really believe is responsibility. Now, many States are in the we must get that deficit under control. The innovation business, beginning to reform Federal Government is too big, and it spends welfare with that responsibility. And they be- too much. And what that leads you to then lieve that when healthy adults receive Gov- is real budget discipline, and the long-term ernment assistance, they have responsibilities plan and the short-term plan provide that dis- to the American taxpayers who fund them, cipline. And I simply cannot let the Congress seeking work, education, job training. I see bust the spending caps that now exist. Tommy Thompson; I had a long talk with I want the Congress to do what I believe him not just about the experience in Wiscon- you want, transcending party lines, and that sin but about what other States are doing in is to stop showering the States with these these areas. And we support that innovation. mandates, unfunded mandates. For busi- Clearly, we have responsibility to those in the nesses or for States, mandated programs and social safety net. And we have a responsibility benefits too often mean mandated deficits. to ensure that welfare is a temporary net, And I've told Congress if you pass mandates not a guaranteed lifestyle. So, we're going onto the States, pay for them and don't do to do what we can to help reform the sys- it by raising taxes on all the Americans, on tems. That leads us to waivers. If you need the American people. a waiver of Federal regulations to reform, I want Congress to give me something that we'll get you a waiver as quickly as we can. you have. I'm not naive about this, but I'd And I want the Federal Government at like to have that line-item veto. And I under- another point to redouble our efforts for the Administration of George Bush, 1992 / Feb. 3 197 George Bush, 1992 ge to please a con- most fundamental building block of a home, every child full and fair opportunity to learn. hing in the budget. a school, a neighborhood, a city, our Nation, We believe educational choice is the way, the aber of a Congress. and I'm talking about the family. Several clear way to help do that. Choice serves as practice of bending weeks ago-I mentioned this in making the a cornerstone in our America 2000 program. n every project en- State of the Union-a group came in from Thirty States have already embraced America le country, as well the National League of Cities, Democrats, 2000. And we can ensure just around this epeating that a line- Republicans, large cities, small cities, urging table that every State joins the march, that or a Governor say me to appoint this Commission on the Urban every community becomes an America 2000 d to say, and that Family. The decline and disintegration of the community, that every kid is prepared for the family was at the very heart of the problems competitive world of the 21st century. let the States sup- that they spelled out. And it was without ex- So, our education revolution, and I use the "O important social ception; they agreed on this unanimously. term "our" advisedly. Governor Nelson chid- ginations. And too And of course, I'm very grateful to Governor ed me last night because I said "my" edu- ze-fits-all blueprint Ashcroft and the former mayor of Dallas, An- cational program. I was taking that up to le of here, outside nette Strauss, who agreed to lead this Com- Congress because, very candidly, they have mission. a different approach there. But I accept that es laboratories. We I believe our plan looks at the fun- because it is "our" educational program. And immit, educational damentals. It gives much-needed support to that revolution is ours. It started in Char- 3 let the States do those raising families by increasing that per- lottesville more than 2 years ago. It shows innovation. And I sonal exemption on the Federal income tax what can be done when we lay down our local governments by $500 per child. I wish it could be more, partisan swords in service to a higher cause. inistering services. but that's all that can fit into this budget that And I hope that you all will serve as an exam- se a revised $14.6 will not bust the ceilings. That's all we can ple, an inspiration for all of us in Washington hat grant will pro- afford right now. We give families a greater during the next 6 weeks. ed flexibility to ad- stake in health care and education. And it In sum, I don't want a partisan fight over health and social proposes IRA reforms and tax changes that our education program or, indeed, over this program, some of help people pay for these basics. growth package. And I really want us to do rtinez was talking A final issue, and one where you all have what's right. And my eyes are open in terms literally starred in an exemplary bipartisan of the partisan political year. But again, we leral policy on cru- manner, and that's education. The Governors have this timeframe now in which we can form. And the key have helped unleash a long-overdue and lay aside our partisan ambitions and get ple word, and that much-needed revolution in education. And something done for this country, both in the ay States are in the I want to commend the works of Governor educational field and in terms of growth. inning to reform Romer and Governor Campbell on that re- So I guess the bottom line is, I need your bility. And they be- port of the National Council on the Stand- help. I'd like to ask for your help to talk to dults receive Gov- ards and Testing. the Congress about these initiatives. And cer- ave responsibilities The Senate has indicated unanimous sup- tainly I would solicit, earnestly solicit your S who fund them, port for the recommendations, and our new help to see us move this country forward to job training. I see budget injects new funds for research, statis- try to revolutionize education for the genera- d a long talk with tics, and assessment funding that would be tions coming. erience in Wiscon- used to help implement these rec- Thank you all very much. In just a second States are doing in ommendations. So now, we must take the we will be alone and able to hear a few sug- >rt that innovation. work that we began together and take it fur- gestions or answer a few questions. Who's ility to those in the ther. And we must revolutionize these Amer- next? ave a responsibility ican schools. I don't know if Lamar has had Governor Romer. Mr. President, let me a temporary net, a chance to bring you up to date, but clearly, just begin by thanking you for your firm and :. So, we're going I hope you will ask him where it stands if steadfast leadership in the world during this 'p reform the sys- he hasn't. time of rapid change. We're grateful for your livers. If you need I'd like to urge you to help me send this budget initiatives to stimulate economic lations to reform, message to Congress to literally join in this growth. And your partnership with Gov- quickly as we can. revolutionary crusade for American edu- ernors is a significant one in Federal-State al Government at cation and to pass the strategy, pass the relations. Especially in a city that is covetous our efforts for the American 2000 strategy. We have got to give of power, we appreciate the fact that you 198 Feb. 3 / Administration of George Bush, 1992 think of us as partners. Especially we appre- and convince them that your approach alone ciate the opportunity of working with you on is the only approach. I think there are other national education goals, child care legisla- approaches, and we ought to, as Governors, tion, on increased funding for Head Start. recognize that and to say together that we Could I ask the press not to leave yet? need to take these differences and work at For clean air legislation, the U.S.-Canada them. trade treaty, and national transportation leg- Positively, I just hope that whatever solu- islation, all of those things. We're here today tion we come by, that we do not, in the short- to say to you that we appreciate your co- term solutions, dig ourselves holes where we operation and pledge our cooperation with do not have long-term economic growth you as we share this opportunity to bring available to us. And I just wanted to lay out America into the 21st century. that issue because it was an honest issue Excuse me, we need a new format here. among some Democratic Governors that we I come as a part of a nonpartisan organiza- want to communicate to you that we're con- tion, NGA. I'm the incoming chairman, and cerned about the budget that you've laid out. I think there are a lot of things that we need We're concerned that it does not provide the to discuss with the administration. And un- revenue to do what is anticipated there, and fortunately, this format is not a good one; we're concerned that some of those may end it's kind of structured. They're assigned ques- up on our backs, particularly the $12 billion tions. undesignated source. The President. Ask me anything you The President. But if it doesn't provide want. the revenue, are you all suggesting a tax in- crease now at the Federal level? Budget Proposals Governor Romer. But I think that there Defense Budget are things that we do have a bipartisan pro- Governor Romer. Well, I think that the gram on, and there are some things that we approach that many Democratic Governors honestly differ, Mr. President. And I, before are taking is the following: That we ought the press left, wanted to say that on the main to take the peace dividend, whatever size it issue that is on your mind, and that is the is, $50 billion to $100 billion over 5 years, economic recovery program and the budget, and have it directed toward economic stimu- I think that there are some very strong feel- lation of the country. Secondly, that we ought ings about that issue from Governors. And to take the issue of tax fairness and adjust I think that we, hopefully, can arrive at a it between the middle class and those in the bipartisan answer to it. upper brackets as Congress and you may However, there are a couple of points that jointly decide. But I think that-I'm worried you made that I think have partisan implica- about trying to take the peace dividend and tions. And I just, frankly, want to answer to make the economic tax adjustments that them before the press leaves the room, and you suggested with figures in the budget that it is in reference to your budget proposal. I do not yet believe balance. I also want to get gimmicks out of that budg- The President. Well, let me get to the et. I don't think they're out yet. I think defense budget. Is the Democratic Gov- there's a $12 billion gimmick, which is an ernors taken a position that it ought to be asterisk which is not yet identified as to a $100 billion defense cut? I have said to where the money is going to come from. And the Nation I think it ought to be $50 billion, I think there is a $28 billion gimmick in there and the Joint Chiefs of Staff think it ought in terms of accrual accounting of anticipating to be $50 billion. And I have a responsibility things in the future. for the national security and the foreign pol- Now, I want this to be settled, if we can, icy. And in my view, $50 billion, based on by honestly working through the options. But recommendations from the Joint Chiefs and I honestly believe that we ought not pose from the Secretary of Defense, is right. this meeting with the Governors of how can Now, are we saying-we're getting to spe- we as Governors help you go to Congress cifics here. Do you want it to be $100 billion, tion of George Bush, 1992 Administration of George Bush, 1992 / Feb. 3 199 that your approach alone 1. I think there are other and if so, what bases do you want to close? some Democratic Governors, as to what What areas do you want to shut down? What ought to, as Governors, that's going to mean in terms of how we settle weapon systems do you want to knock off to say together that we on the economic recovery package. differences and work at right now? Where do you want to lay off the Now, Mr. President, I'll frankly try not to people? We've got a program. We're testify- make this any more partisan. I'm just saying ing on it every day. Now, I'd like to know hope that whatever solu- that I want to have an opportunity that we it we do not, in the short- what your suggestion is specifically, while we can come to the table, we as Governors on have the press here. ourselves holes where we both parties, have this discussion in detail so Governor Romer. Let me answer it. The term economic growth that whatever this economic package is, it's I just wanted to lay out reason I got into this is that I recognized in going to fit with the States when we get it it was an honest issue your presentation-and before the press was passed. to leave-was an identification of these Gov- cratic Governors that we The President. I think, you will recall, at te to you that we're con- ernors to go to Congress and argue for the the opening of my remarks, I invited that dget that you've laid out. budget message that you made. And I simply kind of suggestion. Now, inasmuch as you at it does not provide the am trying to say there is an alternative point raised a couple of specifics, I think you're is anticipated there, and of view that ought to be put on the table. entitled to an answer. And I'd like Dick some of those may end And that alternate point of view is, first of Darman who has testified to respond to those rticularly the $12 billion all, in the size of the military peace two points. dividend Director Darman. Thank you, Mr. Presi- But if it doesn't provide The President. Right. dent. Governor Romer. is a debate 1 all suggesting a tax in- The accrual accounting point is really quite deral level? whether it's $50 billion or $100 billion. And arcane. But for those who are aware of the I don't know the answer to that because I issue to which the Governor referred, let me don't sit in the Halls of Congress. But I think clarify a couple of things. First of all, the Well, I think that the that debate ought to go forward. Secondly, budget numbers that we published and the Democratic Governors there is a debate as to whether or not the deficit numbers we published do not, do not llowing: That we ought tax structure is fair, and that debate ought include the effect of the accrual reforms. In vidend, whatever size it to go forward. And I think that the Governors other words, the number that is an unattrac- 00 billion over 5 years, ought to be able to participate in both parties tive number for fiscal year '92, which we pub- toward economic stimu- in that debate and- lished, $399.4 billion estimated deficit with Secondly, that we ought The President. Well, let's discuss it. What our program, does not include the effect of tax fairness and adjust do you think we ought to do? What level do the accrual accounting reform we rec- e class and those in the we have of defense spending? We're testify- ommend, point one. In other words, the Congress and you may ing every single day for the details of this premise is wrong. think that-I'm worried program. But if you've met and you want to Second, the accrual reforms which we pro- the peace dividend and say something in front of the press about- posed, we proposed in June of last year be- ic tax adjustments that I ask you to be specific with me. I think that's fore the growth package. They are independ- igures in the budget that the way we ought to approach it. ently desirable. We were asked by the Con- alance. Specific Budget Issues gress to make a recommendation. We made Vell, let me get to the that recommendation. The Congressional the Democratic Gov- Governor Romer. Well, the specifics that Budget Office was also asked. They made the on that it ought to be I'm really concerned about, about the budg- same recommendation, that insurance pro- se cut? I have said to et, and I'll be detailed about it, is there's a grams should be subject to accrual account- ought to be $50 billion, $12 billion asterisk that I think hangs over ing. The two different independent account- of Staff think it ought the head of Governors because it may be ing organizations, outside CPA's, made the 11 have a responsibility State programs that are cut. There is ac- identical recommendations. And in fact, ity and the foreign pol- counting, accrual accounting in future re- many States followed the same approach and $50 billion, based on ceipts that concern me. There are implica- are ahead of the Federal Government. Some m the Joint Chiefs and tions of tax revenue loss in the IRA treatment have argued that had we had accrual ac- Defense, is right. in years ahead that may produce additional counting in the past, we would have seen the -we're getting to spe- deficit. And in the course of the 2 days that adverse effect of the S&L crisis in advance, int it to be $100 billion, I have been in town, I find that there is a and it would have taken the appropriate pre- considerable point of view, at least among ventive action in advance. 200 Feb. 3 / Administration of George Bush, 1992 So, I think that that point is not quite apt Timing of Congressional Action as a criticism. In fact, it's a useful reform The President. While the press is here, we're recommending, but it is not used in did the Democratic Governors meet, and is the deficit numbers that we published at the there any feeling that we shouldn't press to lead of the budget. try to get something done by March 20th? On the IRA scoring issue, again I'm afraid Is there a spokesman on that point? Because there's a little bit of confusion. We actually what I would like to suggest, not that you scored the IRA proposal as losing money. But have to sign every "t" and "i" but that we we nonetheless propose it because we think all urge Congress to move by that date. If it has a favorable long-term effect on growth. that date isn't good, what date? Is there feel- There are some in Congress who have pro- ing on that one? posed IRA reforms which they score posi- Governor Richards. I don't believe, Mr. tively. We did not adopt those. We adopted President, that there was any question that and explicitly over 5 years showed revenue the Democratic Governors as well as the Re- losses, small gain in the first 2 years, substan- publican Governors are anxious to have Con- tial decline in the 3d, 4th, and 5th year, with gress move expeditiously. There was no dis- the declines increasing in exactly the manner cussion of a magic date, but I suspect that you suggested, Governor Romer. But we did the Congress is going to move very quickly, it above board, and we financed it. not only because we're going to urge them On the point about the asterisk-sorry for to do that because it's the right thing to do, going on so long, Mr. President, this is all but because we are very cognizant that it is rather arcane. This one is extremely tech- an election year. It is time for Congress to nical. I believe what you're referring to shows get its budget proposals out there. up in fiscal year '94 and '95. And it's the only The President. That's good because I thing that I can think of that would qualify think most agree, people in the country agree as related to the number you've mentioned. that it can move. It moved very fast on, and What we have done is we have proposed properly so, on these extended benefits, and a budget authority freeze, fiscal year '93 rel- I think it can. And I just hope that that's ative to '92, with every single program cut an area that we can have common, make fully identified above board, with every pro- common ground here because it's important. gram termination fully identified, and with While the press are here, are there any all the increases identified. That's what the other-Jim, yes. law asks us to do. That's all we have to do in the Federal appropriations process, one Medicaid and Welfare Waivers year. Governor Florio. Mr. President, I'm au- For the outyears, we extended the budget thorized to ask a question that I think is on authority three forward, '94, '5, '6, 7. The the minds of many of the Governors. As we outlays that are associated with that you can't try to put together our budget problems, know at this stage; you don't know until the there are two areas that sort of jump out that Congress has made the decisions on fiscal are extremely difficult for us to deal with: year '93. And you have to assume an outlay One is health care in general, Medicaid in ratio. We did, but they've hit the cap. So, particular, and the other is the welfare situa- we made an allowance adjustment to make tion that you've talked about. it consistent with the law on the outyears at We are all trying to, in the best federalistic the same time as we proposed to amend the tradition, frame our own packages to be able caps to make it conform correctly. to be cost-effective. And we are doing it, at But none of that has effect on the actual least some of us are doing it, in ways that appropriations process. For the appropria- are not, policy-wise, universally applauded. tions process for this year every single line, It is tough. I was pleased to hear in your every project, every proposal is specified in State of the Union Message the discussion detail. There is no magic asterisk. about waivers, and today again I was very Thank you, Mr. President. pleased. 1 of George Bush, 1992 Administration of George Bush, 1992 / Feb. 3 201 nal Action I guess what I would urge, and I think to go into the provider payment in which the ile the press is here, I urge it on behalf of everyone, is that the OMB had a contrary position that was more departments, particularly Health and Human limiting on States just several months ago and overnors meet, and is Services and of course OMB, which gray em- that was worked out, a temporary com- we shouldn't press to inence always plays a particular role here, promise, I believe, with the Congress? Can done by March 20th? look at these waiver requests with the-I'm we interpret, then, that with that type of phi- in that point? Because hesitant to use the word-the most liberal losophy that we will be able to utilize that suggest, not that you interpretation capable in order to let us put in the future? And that's something that af- and "i" but that we these programs into play in the way that we fects our budget of potentially $25 million; move by that date. If think our localities will be able to deal with some other States, a couple of hundred mil- at date? Is there feel- them. lion. And that's the type of interpretation, I And then, and most importantly, expedi- think, that has caused us some concern. 3. I don't believe, Mr. tious. There has to be some review of these Director Darman. Are you referring to was any question that things quickly as opposed to-and I was talk- the Medicaid agreements we reached-ex- hors as well as the Re- ing with the Governor of Massachusetts who cuse me, Mr. President, may I? 3 anxious to have Con- was lamenting the fact that it took a year for The President. No, please. sly. There was no dis- something that he has an interest in. So that Director Darman. The Medicaid agree- :e, but I suspect that if there's a way that you can, in accordance ment we reached at the tail end of the Con- to move very quickly, with what you've expressed already, commu- gress and then legislated? We propose to e going to urge them nicate directly with some of your folks that honor that 100 percent, notwithstanding the the right thing to do, this is a high priority, it would help us. I sus- interest in reforming the health system. And ry cognizant that it is pect it would help the Nation. And I just some have advocated going back at dis- time for Congress to want to lay that out as a very important ini- proportionate share and other things and re- out there. tiative that the administration can take. opening that agreement. We propose to stick at's good because I The President. I think we've got agree- with that agreement, honor it, and live within le in the country agree ment on that one. And I can assure you that's it. It, I think, is a stable and mutually agree- oved very fast on, and what we will be trying to do. I hope it doesn't able place to move forward, isn't it? xtended benefits, and require-we were just talking about this Trade Initiatives just hope that that's when I was talking to the Director before have common, make coming over here, as to whether legislative The President. Any others? Tommy. because it's important. changes are essential in any of this waiving Governor Thompson. Mr. President, let here, are there any of authority and control. And I gather we can me compliment you on your leadership as do a lot without that. trying to get through GATT and the NAFTA. But Dick, do you want to address yourself If we're going to get our economy moving, e Waivers to that one? Some of it, again, is technical. it's got to be done with a lot of exports. I Mr. President, I'm au- Director Darman. Only to say, Mr. Presi- was wondering if you could give us an update tion that I think is on dent, that this is one where I do think we as to how the GATT is proceeding as well the Governors. As we are in complete agreement and are anxious as NAFTA, which is very important to States our budget problems, to make sure that the waiver process moves like Wisconsin and Texas. And I want to com- .t sort of jump out that more quickly and also that in applying it pliment you on your leadership in that re- for us to deal with: we're more flexible than we have been in the gard. general, Medicaid in past, both of which I think have been sub- The President. Well, NAFTA, as you er is the welfare situa- jects of legitimate complaint by the Gov- know, is getting a little caught up in politics. about. ernors. That is, that we've been too slow and We are not going to take a bad agreement in the best federalistic that we've been too, if you'll pardon the to the Congress. We are going to push for /n packages to be able word, illiberal. So, I would think under the a North American free trade agreement. I d we are doing it, at President's direction you'll see a visible and talked to the Prime Minister of Canada yes- doing it, in ways that discernible and prompt change on this sub- terday on it. I've been in touch with Salinas universally applauded. ject. of Mexico, who's doing a superb job down ased to hear in your Governor Miller. I'd just like to ask a there. And I told them we are not going to essage the discussion more particular followup question, after the pull back one inch, politics or no politics. day again I was very President, of the Office of Management and This expands job opportunity for Ameri- Budget, and that is: Can that be interpreted cans. And the argument that it takes Amer- 202 Feb. 3 / Administration of George Bush, 1992 ican jobs away is just not true. Just in recent isn't easy right now because I think it's much history, the exports to Mexico have dramati- more European politics than it is U.S. at this cally gone up, and that's very, very good for time. Because the common agricultural pol- American jobs. So on that one, we're pressing icy there is one of high subsidization. forward. I'm going to try to set aside any po- And the last thing I'd say, for those who litical timetable on it but move it to comple- are doubtful about it or unclear, the best way tion. to help countries that need help the most We are being fought by the unions, strong. is through a successful conclusion of the They are wrong. And those of us who believe GATT round. The Third World countries in expanding markets and a more prosperous would benefit there more than any others. Mexico is good for the United States, wheth- But Ed, do you want to add a word to er it's their ability to do something about that? Because I know a lot of people around their environment, or whether it's their abil- this table are vitally interested in the agricul- ity to buy more American goods, that's sen- tural component of this. sible trade policy. So, we're going to press Secretary Madigan. Mr. President, the for it. Whether we'll get it, Governor Thomp- Director General of GATT, Arthur Dunkel, son, in time or not, I don't know. has made a proposal for the solution to the The GATT, which in a sense is broader round, and that proposal is regarded by the because it gives us problems in Europe, is United States as being a very acceptable extraordinarily difficult. The major stumbling framework for bringing the negotiations to block is still agriculture. It is not the only a close. And as you point out, the Europeans stumbling block. I had a chance to visit with will not accept it. So, Mr. Dunkel has begun President Mitterrand up at the United Na- meeting unilaterally with the Europeans this tions on Friday. We've agreed to talk again week to see if he can work out something in a bilateral meeting on this subject. The with them that he would then propose to the Germans are involved, and they tell me rest of us. We don't know the status of those they're trying to be helpful. But I don't want talks at this point. to misrepresent it to the Governors; we still The President. Pete, Governor Wilson. have some big problems on bringing this one to conclusion. Congressional Mandates and State And it is essential that it get done because Priorities if it doesn't get done, what we're going to Governor Wilson. This is coming back on do is see the world start dividing up into trad- Jim Florio's point. I think that there should ing blocs. There's one out in Asia that makes not have been a Governor listening to your some sense, the ASEAN bloc. But if you add State of the Union who didn't cheer when to that Japan and try to make a Pacific trading you made the point that you did and that bloc, that would not be good for free trade you repeated this morning about waivers. If worldwide. I similarly went to great ends to there should be bipartisanship on anything, tell them that the NAFTA, the free trade at least among the Governors, it's on that agreement, was not an effort on the part of point. I can't think of a Governor here who this hemisphere to divide into a trading bloc. has not at some point or another given voice And I think I've made that point, I hope con- to the complaint that we are being compelled vincingly, to the EC and to Europe. to spend State tax money in accordance not But it is important we get that deal done, with our own priorities but really with the and get it done so the Congress can approve agenda of the congressional committee chair. it. We're not going to take a bad deal up And it does distort priorities. It does distort there. It isn't simply agriculture: We've got our spending, not just at the State level, but intellectual property rights; we have market I would suggest that most of the distortion access; we have some other ingredients. But is linked to Federal spending. we've got good people working this problem. And so, I would say that we have reason There's Ed Madigan here today. He's han- to be not only grateful but also, as we seek dling the agriculture end and can expand on the waivers, I think we're all well aware that that. But Carla Hills, doing a superb job. It the waiver is temporary relief. God knows George Bush, 1992 Administration of George Bush, 1992 / Feb. 3 203 se I think it's much we're grateful for it, and we are very grateful you endorse it-[laughter]. I've known you an it is U.S. at this for the speedy action that you're bringing too long. on agricultural pol- about. The real answer is that Congress Who's next? Terry. sidization. passed these laws, and Congress should re- say, for those who peal them. And I think we ought to help one Agricultural Trade clear, the best way another. I think, frankly, that those of us who Governor Branstad. Mr. President, first ed help the most have complained so loud and long have an of all, I want to thank you for your assistance obligation to ourselves as well as to you, not in trying to open some markets for us. Some- conclusion of the only to Federal taxpayers but to those com- thing that was done a few years ago, opening 1 World countries en than any others. mon constituents who are State taxpayers as the market for beef in Japan, is really making to add a word to well, to go up there and really start changing a difference in my State. And I heard David t of people around the laws. Now, that's going to be hard to do Gergen say recently that 80 percent of the because committee chairmen enjoy the new jobs created last year were as a result sted in the agricul- power of the purse. They love that general- of exports. We can't afford to go into protec- ized prescription. tionism. We have to continue to fight for ac- Mr. President, the T, Arthur Dunkel, But this may not be the perfect season in cess to those markets. And I just want to en- which to do it. But after your reelection, to courage you to continue to lead that effort the solution to the for access. is regarded by the venture a partisan comment, we ought to go a very acceptable up there, bipartisan, and say to these com- We're being discriminated against in the he negotiations to mittee chairmen, "We've had enough. You European Community because of the hor- are distorting the whole process." mone issue, which is a false issue, doesn't out, the Europeans The President. Would it be possible to have anything to do with health. And we Dunkel has begun need to continue that. And I know that's a the Europeans this get agreement amongst Democrat and Re- ork out something publican Governors as what legislative stickler; that's an issue in the GATT negotia- hen propose to the changes would be enacted, whether we could tions. But I just want to encourage you to the status of those get together on that, whether the Governors' continue to take a strong stand on that. It's Association might get together and suggest very important to us, especially in agri- overnor Wilson. legislative changes? Because if that came up culture. Given an opportunity to compete in there in a bipartisan way I believe it would a fair playing field, we can compete in the world. and State make a tremendous impact on Congress, far The President. You want to respond, Ed? better than, say, the administration taking it Secretary Madigan. I think, Mr. Presi- is coming back on up with the backing of some Governors. dent, in the Dunkel text, the standards on : that there should Governor Romer. I think that there is the sanitary and biosanitary issues have been r listening to your possibility for us to do some bipartisan work well-regarded by the wheat producers in the didn't cheer when in that area, and I think it would be very United States because they would deal with you did and that helpful for us to sort that out. And Mr. Presi- that hormone issue in Europe. That's one of U4 about waivers. If dent, I appreciate this conversation. This is the things that all of our producers seem to nship on anything, what I was hoping that we could do, is to like about the Dunkel text. ernors, it's on that identify those things where we bipartisanly The President. Governor Sinner had his Governor here who really can go together, but also to identify hand up. nother given voice that there are some times and some places e being compelled in an election year that we do have dif- Energy Policy in accordance not ferences. And I appreciate your giving us the Governor Sinner. In this whole area of ut really with the opportunity to raise these differences this trade I get very nervous about us putting our- il committee chair. morning. And the reason I did it in an abrupt selves in a continual vulnerable position on ies. It does distort way, I just did not want us to be in the pos- energy. I can see why other countries have he State level, but ture of endorsing only the one economic ap- the same feeling about food. You and I had t of the distortion proach which was in your State of the Union a long talk about energy when you were Vice ng. Message. There is more than one, and I ap- President, and you had been over to the Mid- at we have reason preciate you giving us the opportunity to ex- dle East. And I remember then that you it also, as we seek pound that this morning. shared my concerns that we sit here totally all well aware that The President. All I was doing was ap- vulnerable to a Middle East tyranny. And I relief. God knows pealing for an endorsement, not suggesting want the free trade. But I think when you 204 Feb. 3 / Administration of George Bush, 1992 get into the area of energy and food, we have And what I'm getting at, though, is I don't to understand that the people of Europe think that there's anything in these free trade have been hungry, and they aren't going to agreements that is going to adversely affect forget that. And we have been through a hor- development of domestic energy. I just don't rible war, $100 billion we spent, a couple believe that there's anything, if we've got a hundred thousand people dead to protect good NAFTA or we've got a good GATT our energy resources. I want to say that I agreement, that either one of those would think we have to be extremely careful and make us more dependent on foreign oil at not euphemize free trade as though there all. I don't see the connection on that one; weren't some other considerations because maybe I've missed it. But I certainly don't it is not magic. It's not in the Constitution. want to see us become more dependent on What we are bound to do here is protect it, and I don't think we have to. the people's needs. Governor Sinner. -[inaudible]-that The second thing, you asked a while ago free trade will somehow or other obliterate if any of us were for tax increases. And I the dangers that befall society if we became don't speak for anybody but myself. But my totally dependent on something called free children and your children and the children trade in energy. That's the point I wanted of all the people around here are going to to make. face one hell of a debt. And I, for one, say The President. Yes, unfortunately we're my answer to your question: Yes, I would becoming, because of failure to move for- favor that. I think it's time we go back and ward with safe nuclear power, which I think tax some of the wealthy people. I'm not we can do-we'll get a lively debate on that super-wealthy, but what I pay in income one around this table, I'm sure-or getting taxes isn't very much, really, compared to more technology going. I think we've got a what people in low-income brackets pay. I problem on energy dependence, and I'd like to see it reverse. And that's what we've tried think you could tax the wealthy a lot more. And the fact is if we continue into this to do in our national energy strategy which sewer of debt, our children and the families we have not gotten through the Congress. that are suffering today, that's nothing com- Again, I'd make an appeal for you people that pared to what the families of tomorrow will are interested in the energy side of things suffer. So, I just want you to know that I, to take a look at it and support it where you can. I see Jim over there, who's done a su- for one, would stand up and suggest I do think we should raise them. perb job on our overall energy requirements, trying to make us less dependent. The President. My problem on that is that I cannot certify that our program-and, the percentage of the GDP, GNP taken by Jim, correct me-will make us independent taxes is inching up, and it's too high. But any- of foreign sources of all energy. It won't. But way, we have a difference on that one. it will move us in the right direction. Is that I don't think we've got a difference on en- about right? ergy. One, you and I do agree, I think, that Secretary Watkins. Yes, that's right. The there is a risk in becoming ever more de- bill stripped down will come to the floor this pendent on foreign oil in this country. And afternoon at 2 p.m. It will then go through one of the reasons I strongly support the a debating period and come up for a motion ANWR is because, one, I think it's environ- to proceed. Whether there's going to be a mentally compatible, and secondly, most im- filibuster, I don't know. That should happen portantly, I think that offers us a chance to on Wednesday, and we should be underway at least turn around this increasing depend- on debate. Unfortunately, it does take out ence on foreign oil. And I think it's about the Arctic National Wildlife Refuge; it takes time that we make that case, For those of out the CAFE standards which we were us, Democrat or Republican, who believes going to get all the way along. Nevertheless, in our national energy strategy as outlined, the Arctic National Wildlife Refuge, as you we ought to fight for it. So, I don't think mentioned properly, is part of the growth we have a difference. package. It is worth about 500,000 jobs over George Bush, 1992 Administration of George Bush, 1992 / Feb. 3 205 it, though, is I don't the next 10 years. It's worth about $200 bil- cipally used in the northern States to help gn in these free trade lion in reduction of our trade deficit. Those people get through the winter with fuel as- to adversely affect monies always go offshore. sistance. We had to put some State money energy. I just don't The movement of that particular refuge up. Of course, we had to level-fund our State ning, if we've got a will not only be worth that 8.5 billion barrels budget this year, so that meant we had to got a good GATT but will also carry along, with the residue of take the money from somewhere else. ne of those would the Prudhoe Bay will add another billion bar- In your budget this year, Mr. President, at on foreign oil at rels. Now, that's good for the economy of it's recommended that you cut the program ection on that one; the United States. And so that's why you in- again by 33 percent. And we could barely at I certainly don't clude it as part of your growth package and handle last year's cuts. I would ask that you nore dependent on encourage them to pass this bill, which is might reconsider and possibly levelly fund ve to. filled with natural gas expedition movements that, which I think would be consistent with -[inaudible]-that to the private sector, to industry, to business. your own budget goals. It would mean a great or other obliterate It's good; it's clean. You've got a very bal- deal particularly to those over 65 and living ciety if we became anced program there, and I'm hopeful that alone and who really depend on this program nething called free the 14 titles that remain, that we will see in the northern States for keeping themselves the point I wanted an expeditious address by the Congress. warm throughout the winter. And I hope that we can continue the fight The President. Does anybody got avail- infortunately we're for bringing back the Arctic National Wildlife able the figures on home heating oil price, ilure to move for- Refuge as part of your growth package, if say, 2 years ago compared to what it is now? ower, which I think nothing else. You can't get it in the energy Governor Dean. Well, this year, Mr. vely debate on that bill; keep it in the growth package. It is real President, you're correct. This year we were n sure-or getting growth. able to think we've got a We need revenues to find the alternatives The President. It's less, isn't it now? idence, and I'd like to oil which is the very thing we're trying Governor Dean. It's much less now, and t's what we've tried to do in getting alternative fuels. You have that's one of the reasons we were not hurt ergy strategy which the most powerful alternative fuel package ugh the Congress. as badly by the cuts this year. But I don't that's ever been put together in this country, for you people that expect the home heating oil price to go down to go in all directions. It will help many Gov- ergy side of things another 33 percent next year. And also, of ernors around this table with the ethanols; pport it where you course, there are a great many, at least in the methanols; the electric car, the oppor- who's done a su- Vermont, that heat with other fuels such as tunity to drive those electric cars with the ergy requirements, wood or natural gas, and the price has not off-peak loads in our industrial plant today. endent. We have plenty of electrical power for 120 dropped commensurately. our program-and, million of those vehicles. We can get off this I'm not so much complaining about last ke us independent oil in our transportation sector. year's cut, which we did deal with, but if we hergy. It won't. But And we still need the oil, our own oil. And were to lose 33 percent of that program, it direction. Is that so, we can move in the direction that sta- small program though it is, we would be dev- astated. bilizes that increase in imports. And I think es, that's right. The your bill not only does that, but your bill is The President. Dick, do you want to com- me to the floor this ment on it? I can't remember the exact num- a very powerful growth package for both jobs 11 then go through and revenue for the country. bers, but I-go ahead. ne up for a motion Director Darman. The Governors will re's going to be a Low Income Home Energy Assistance perhaps remember, Mr. President-it's all a hat should happen Program question of perspective, I suppose. The ould be underway The President. Governor Dean. standard proposal for this program, which is , it does take out Governor Dean. We've been tossing known colloquially as LIHEAP, the standard fe Refuge; it takes around huge numbers. I want to talk about proposal has been zero in the past from the S which we were a much smaller number, just about $500 mil- administration. And this year, we're at a bil- ong. Nevertheless, lion. In your budget last year, you rec- lion. So, we look at it as a billion more than ife Refuge, as you ommended the cutting of the low-income some might have recommended and pro- art of the growth human assistance program. It's a small pro- posed, and you look at it as half a billion 500,000 jobs over gram. It's $1.5 billion this year. It's prin- less. 206 Feb. 3 / Administration of George Bush, 1992 The way the appropriations process works, grateful to him and Dick also. But it required as you know, these things are still subject to some skill up on the Hill, too, which he dem- adjustment within the caps. And so if this onstrated. goes up 500, something else has to go down 500. This is not one that we would, I think But in any event, thank you all very much. it's fair to say, fight and die over. We thought And I appreciate the spirit of this visit, and a billion was a lot more than zero. I can un- look forward to doing this again. Thank you derstand why you think it's less than 1.5 bil- very much. lion. Note: The President spoke at 11:15 a.m. in Medicaid Waivers the East Room at the White House. Governor Romer. I want to thank the President for his willingness to exchange these views with us on such a candid level. And I appreciate his welcome to the White Exchange With Reporters Prior to a House that he has consistently extended to Meeting With President Ronald us as Governors. Venetiaan of Suriname And even more importantly, I appreciate February 3, 1992 the fact that we've been able to work to- gether in a true federalism partnership which Q. Any defense of American workers in has made it possible for us to be more pro- response to what Mr. Miyazawa said? ductive. The President. Just go by what Marlin Some of the questions today even reflected Fitzwater told you guys when you asked the the way in which we've been able to work same question about 6 hours ago. [Laughter] out differences. The one about the Medicaid Q. Have you seen the settlement was a very serious problem to a The President. Strong support. I just number of us. We worked together through heard what Marlin said, and I back it 100 the months of October and November in a percent. I also saw the correction by Mr. fashion which included they-said-it-couldn't- Miyazawa, I'm pleased to say. So, that was be-done type activity. And the Congress, be- fine. cause the President had worked so arduously with us toward reconciling those differences, Q. Do you accept that, sir, as an apology? agreed. And we were able to stabilize the The President. I accept it for what it was, situation which was highly volatile for our a very clear statement from a good man. A own budgets and for the Federal budgeting man who has said, clearly, that they'r going process as well. to live up to their commitments, and I sup- So, Mr. President, thank you very much port him for that. And we had a very good for your special welcome to us, and your visit. So, you know, he's gone out of his way kindness to us, your cooperation with us, and to make clear that he was not denouncing your willingness to exchange these views with all American workers, and I strongly support us. We're deeply grateful to you. them and continue to say so. We can com- The President. Listen, I enjoyed having pete with anybody in the world if we're given you. I see John Sununu. I think those of you, access. Marlin summed up our position very well. as we tried to get through that Medicaid problem, you had an inside voice here. [Laughter] And I really think he deserves Note: The exchange began at 4:31 p.m. in credit for the fact we were able to reach the Oval Office. In his remarks, the President agreement that brought some relief and, I referred to Prime Minister Kiichi Miyazawa wouldn't say joy, but at least less concern to of Japan. A tape was not available for ver- the Governors around the table. I'm very ification of the content of this exchange.