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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 Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13705 Folder ID Number: 13705-001 Folder Title: Kay Orr Breakfast 2/8/90 [OA 8310] Stack: Row: Section: Shelf: Position: G 26 19 6 4 KAY ORR BREAKFAST / OMAHA, NEBRASKA THURSDAY, FEBRUARY 8, 1990 / 8:30 A.M. GOVERNOR ORR, MAYOR MORGAN, CONGRESSMAN BEREUTER [BEE-RIGHTER], CONGRESSWOMAN SMITH, GOVERNOR THONE, FUTURE SENATOR HAL DAUB, NORM RIFFEL, DUANE ACKLIE, SALLIE FOLSOM, LADIES AND GENTLEMEN. I'M DELIGHTED TO JOIN YOU FOR THIS EARLY-MORNING BREAKFAST. - 2 - EVEN THOUGH BEING HERE AT THIS HOUR REMINDS ME OF THE TIME I TOLD ONE OF MY GRANDKIDS THAT THE EARLY BIRD GETS THE WORM. HE SAID: "I THINK I'LL SLEEP IN AND HAVE PANCAKES." // WELL, THIS MORNING WE'RE HAVING SPECIAL K. YES, IN HONOR OF THE SPECIAL WOMAN WHO HAS COME A LONG WAY SINCE SHE FIRST WORKED FOR THE REPUBLICAN PARTY IN 1963. // SHE'S GONE FROM RINGING DOORBELLS TO MAKING HISTORY. // THE GREAT GOVERNOR OF THE STATE OF NEBRASKA. KAY ORR. // - 3 - I'VE KNOWN KAY SINCE 1976. AND I WANTED TO COME HERE AND PERSONALLY ENDORSE HER. I'M HERE BECAUSE KAY HAS MADE TOUGH CHOICES AND RIGHT DECISIONS. AND BECAUSE HER FIRST TERM HAS PRODUCED NOT EMPTY RHETORIC BUT RESULTS. // DWIGHT EISENHOWER ONCE SAID, "OUR BEST PROTECTION AGAINST BIGGER GOVERNMENT IN WASHINGTON IS BETTER GOVERNMENT IN THE STATES." // LET'S HELP KAY KEEP MAKING GOVERNMENT BETTER. // LET'S HELP HER WIN A SECOND TERM. // - 4 - THIS ELECTION WILL DECIDE WHETHER NEBRASKA ENJOYS CONTINUED PROSPERITY. AND WHETHER YOU CONTINUE TO HAVE THE LEADERSHIP IT TAKES TO WIN THE WAR ON CRIME AND DRUGS. IT WILL DECIDE WHETHER NEBRASKA HAS FARM POLICIES THAT WORK. AND AN EDUCATION SYSTEM THAT MAKES THE GRADE. THOSE ARE THE QUESTIONS. // WELL, I HAVE THE ANSWER. "FOUR MORE FOR [GOVERNOR] ORR." // ((You KNOW, KAY'S HUSBAND BILL LIKES TO TELL HOW HE WENT TO THE BANK TO CASH A CHECK. THE TELLER LOOKED UP AND SAID, "ARE YOU THE WIFE OF THE GOVERNOR?" // - 5 - EMBARRASSED, SHE TRIED TO MAKE AMENDS. "WHAT I MEAN," SHE SAID, "ARE YOU MR. KAY ORR?")) // ((BILL, I KNOW HOW YOU FEEL. IT'S LIKE KAY IS ALWAYS TELLING ME: "IT's FINE THAT YOU'RE HERE, MR. PRESIDENT. BUT IF YOU REALLY WANT TO WOW THE CROWD, BRING BARBARA.")) // As AMERICA'S FIRST REPUBLICAN WOMAN GOVERNOR, IT'S TRUE: KAY HAS BECOME A HOUSEHOLD NAME. AND WHY NOT WITH STATS RIVALING FOOTBALL'S BIG RED? MORE THAN 23,000 NEW JOBS AND $2.4 BILLION IN NEW INVESTMENT SINCE 1987 -- THOSE ARE KAY ORR VICTORIES. - 6 - So IS NET FARM INCOME -- NEARLY TRIPLED -- AND AN unemployment RATE CUT IN HALF. // NEBRASKA'S FIRST- EVER CHILD CARE CREDIT. A CRUSADE To IMPROVE SECONDARY AND HIGHER LEARNING -- STILL FURTHER VICTORIES. AND so ARE A DRUG ADVISORY COUNCIL AND WILDLIFE PRESERVATION. // THESE TRIUMPHS HAVE HELPED THE WORKING PEOPLE OF NEBRASKA. AND KAY NEEDS A SECOND TERM TO FINISH THE JOB SHE'S so EFFECTIVELY BEGUN. - 7 - YET THE NEED IS NOT NEBRASKA'S ALONE. I NEED HER, Too, TO SUPPORT THE WORK OF OUR ADMINISTRATION. FOR WE WANT TO MAKE AMERICA A KINDER, GENTLER PLACE. // AND GET MORE RESULTS FOR MORE AMERICANS THAN AT ANY TIME IN OUR HISTORY. // LAST WEDNESDAY NIGHT, I TALKED OF THIS IN MY STATE OF THE UNION ADDRESS. AND OF THE TRIUMPHS OF 1989. TRIUMPHS LIKE THE LOWEST UNEMPLOYMENT RATE IN 16 YEARS. - 8 - INFLATION AT LESS THAN 5 PERCENT. AND THE LONGEST PEACETIME ECONOMIC BOOM IN THE HISTORY OF THE UNITED STATES. // YET WHAT I TERMED "THE IDEA CALLED AMERICA" IS LIKE NEBRASKA: IT'S SOMETHING TO BUILD UPON, NOT REST UPON. So WE HAVE SENT LEGISLATION TO THE CONGRESS TO CONFRONT OUR MOST CRUCIAL ISSUES. FOR EXAMPLE, PROSPERITY MEANS LITTLE IF OUR KIDS AREN'T FREE FROM DRUGS. So LAST MONTH I ANNOUNCED THE 1990 NATIONAL DRUG CONTROL STRATEGY -- PHASE II OF THE COMPREHENSIVE DRUG POLICY WE UNVEILED LAST YEAR. - 9 - WE'RE ASKING CONGRESS TO SPEND OVER 10 AND A HALF BILLION DOLLARS IN FISCAL YEAR 1991 FOR EDUCATION, TREATMENT, INTERDICTION, AND ENFORCEMENT -- ABOUT A 70 PERCENT INCREASE SINCE I TOOK OFFICE IN 1989. // WE ALSO WANT MANDATORY TIME FOR FIREARMS OFFENSES. No DEALS WHEN CRIMINALS USE A GUN. AND AS PHASE II PROPOSES, AN EXPANSION OF THE DEATH PENALTY FOR DRUG KINGPINS. // - 10 - WE'VE REQUESTED SIGNIFICANT INCREASES IN FEDERAL ASSISTANCE TO STATES AND LOCALITIES IN DRUG USE, PREVENTION, TREATMENT, AND LAW ENFORCEMENT. AND WE'VE ALREADY MADE CONSIDERABLE PROGRESS IN ADDING MORE POLICE, MORE PROSECUTORS, AND MORE PRISONS. // KAY ORR SUPPORTS THESE STEPS. HER INITIALS AREN'T K.O. FOR NOTHING. AND THAT'S WHAT SHE'LL HELP DO TO CRIME AND DRUG USE. // I NEED HER AS GOVERNOR TO HELP TAKE BACK THE STREETS. // - 11 - THEN, THERE'S ANOTHER PRIORITY OF OUR ADMINISTRATION: THE EDUCATION OF OUR KIDS. // KAY ORR KNOWS, AS I DO, THAT THE FUTURE OF THIS COUNTRY BEGINS WITH EDUCATION. So SHE SUPPORTS OUR "EDUCATIONAL EXCELLENCE Act OF 1989," WHICH CAN HELP ACHIEVE, BY THE YEAR 2000, THE EDUCATION GOALS THAT I ANNOUNCED LAST WEDNESDAY -- GOALS DEVELOPED WITH THE NATION'S GOVERNORS. - 12 - WE MUST ENSURE THAT EVERY STUDENT IN AMERICA STARTS SCHOOL READY TO LEARN. THAT'S WHY I'VE PROPOSED A RECORD INCREASE IN FUNDS -- AN EXTRA HALF A BILLION DOLLARS -- FOR A PROGRAM WHICH HAS AND CONTINUES TO WORK: HEAD START. // AND WE MUST SEE THAT EACH SCHOOL HAS AN ENVIRONMENT WHERE KIDS CAN LEARN. THAT MEANS MAKING EVERY SCHOOL DRUG-FREE. // OUR GRADUATION RATE MUST BE NO LESS THAN 90 PER CENT. AND WE MUST MAKE DIPLOMAS MEAN SOMETHING. - 13 - So WE WANT U.S. STUDENTS TO BE FIRST IN THE WORLD IN MATH AND SCIENCE ACHIEVEMENT. AND WE MUST GUARANTEE THAT EACH AMERICAN IS A SKILLED, LITERATE WORKER AND CITIZEN. TOGETHER, WE CAN MAKE "THE IDEA CALLED AMERICA" MEAN A DECENT EDUCATION FOR ALL. // "THE IDEA CALLED AMERICA" ALSO MEANS THAT WORKING PARENTS SHOULD HAVE INCREASED CHILD-CARE OPTIONS. OUR LEGISLATION WILL ACHIEVE THAT GOAL. // AND IT MEANS A CLEANER AMERICA. - 14 - So WE'VE SENT UP THE FIRST REWRITE OF THE CLEAN AIR AcT IN OVER 10 YEARS. // WE ALSO WANT A MORE ABUNDANT RURAL AMERICA -- WHERE AMERICANS WORK, INVEST, AND SAVE. IN THE LATE 1980s, FARM INCOME HIT NEAR RECORD LEVELS. Now, LET'S MAKE GOOD NEWS EVEN BETTER -- AND KEEP NEBRASKA STRONG BY KEEPING AGRICULTURE THRIVING IN THE 1990s. // FIRST, I HOPE TO NEGOTIATE A NEW TRADE AGREEMENT WITH THE SOVIET UNION BY THE 1990 SUMMIT. - 15 - THIS WILL RELAX TRADE BARRIERS BETWEEN EAST AND WEST -- EXPANDING MARKETS FOR AMERICAN EXPORTS. I FEEL STRONGLY THAT SELLING OUR GRAIN TO THE SOVIET UNION IS IN AMERICA'S INTEREST AS WELL AS THEIRS. // NEXT, WE'RE GOING TO WRITE A NEW FARM BILL THIS YEAR. IT MUST EMPHASIZE MARKET-ORIENTED FARM POLICIES GIVING PRODUCERS MORE FLEXIBILITY TO DECIDE WHAT CROPS TO GROW. - 16 - AND WE NEED THE INVESTMENT CREATED BY PASSING OUR CAPITAL GAINS TAX CUT PROPOSAL, WHICH WOULD APPLY TO THE SALE OF FARMLAND. TOGETHER, THESE DECISIONS WILL SHOW WHAT'S GOOD FOR AGRICULTURE IS GOOD FOR AMERICA. // WHAT'S GOOD FOR ALL OF US, NATURALLY, IS THAT I BE BRIEF. So LET ME CLOSE WITH A STORY ABOUT A COMMON LOVE OF MINE AND RURAL AMERICA: FISHING. - 17 - IT CONCERNS MARK TWAIN, WHO -- LIKE ALL FISHERMEN -- LOVED TO BRAG ABOUT HIS EXPLOITS. TWAIN ONCE SPENT THREE WEEKS FISHING IN THE MAINE WOODS, IGNORING THE FACT THAT THE STATE'S FISHING SEASON HAD CLOSED. ON THE WAY HOME, ABOARD THE TRAIN, HE CAME UPON A STRANGER. AND IMMEDIATELY STARTED TELLING HIM ABOUT ALL THE FISH HE'D CAUGHT. - 18 - FINALLY, MARK TWAIN ASKED, "By THE WAY, WHO ARE YOU, SIR?" THE STRANGER REPLIED, "I'm THE STATE GAME WARDEN. AND WHO ARE YOU?" // WITH THAT, AMERICA'S GREATEST WRITER NEARLY SWALLOWED HIS CIGAR. AND AFTER A LONG PAUSE HE ANSWERED, "WELL, TO BE PERFECTLY TRUTHFUL, WARDEN. I'M THE BIGGEST DAMN LIAR IN THE WHOLE UNITED STATES." // - 19 - TRULY, MARK TWAIN LOVED TO BRAG. BUT, THEN, HE HAD MUCH TO BRAG ABOUT. AND so DOES NEBRASKA WHEN IT COMES TO YOUR FIRST ELECTED WOMAN GOVERNOR. KAY ORR HAS MADE TOUGH DECISIONS -- RIGHT DECISIONS. AND THEIR RESULTS HAVE ENRICHED NEBRASKANS FROM THE BANKS OF THE MISSOURI TO THE WYOMING LINE. - 20 - So LET'S ENSURE "FOUR MORE FOR [GOVERNOR] ORR." AND PLEDGE TO SUPPORT ONE OF AMERICA'S TRULY GREAT GOVERNORS. THANK YOU FOR THIS OCCASION. GOD BLESS YOU. GOD BLESS AMERICA. AND LET'S KEEP KAY ORR THE GOVERNOR OF THIS GREAT STATE OF NEBRASKA. # # # # Staffed time 7:30 what time 7.8:30 where ? Peony Park (Smith/Blessey) how many 300 7:30 P.M. intro Gov. Orr Febriciny 1, 1990 notables RAY8 03 Norm Riffel Lch PRESIDENTIAL REMARKS: KAY ORR BREAKFAST Dwane Acklie notl. Neb committenen OMAHA, NEBRASKA THURSDAY, FEBRUARY 8, 1990 P.J. [Beerighter] Governor Viginia Orr, Mayor Morgan, Congressman Bereuter, Congresswoman Smith, future Senator Hal Daub, Ladies and Andy gentlemen. Norm Riffiel, Dwane Acklie I'm delighted to be in Nebraska. And to join you for this early-morning breakfast. Even though being here at this hour reminds me of the time I told one of my grandkids that the early bird gets the worm. He said: "I think I'll sleep in and have pancakes. // [Special Votalie Penate 1023471-2044 2244 Well, this morning we're having ham and eggs. And saluting a woman who has come a long way since she first worked for the comp Republican Party in 1963. // She's gone from licking envelopes 70, to licking Democrats. // The great Governor of the State of Nebraska. Kay Orr. // Notelies Peste You know, I've been acquainted with Kay since 1976. And I wanted to come here and personally endorse her. I realize you wanted to hear a few words from a prominent national figure who can really fire up a crowd. // Unfortunately, Johnny Carson had to go back to Los Angeles -- so I'm here instead. I'm here because Kay has made tough choices and right Posthress decisions -- as Nebraskans are prone to do. And because her first term has produced results, not empty rhetoric -- exactly 2 X X what Nebraskans want in a Governor. // Dwight Eisenhower once Pmer. said, "Our best protection against bigger government in Quot. P.180 Washington is better government in the States." // Well, let's a help Kay keep making government better. // Let's help her win a second term. // This election will decide whether Nebraska enjoys continued SayDer ADY 87-89 Accomp. prosperity. or whether it abandons the leadership which has cut the jobless rate in half. This election will decide whether -- on the one hand -- Nebraska has the leadership it takes to win the war on crime and drugs. or whether -- on the other -- it chooses policies which 3 blame everyone but the criminal. This election will decide whether Nebraska has farm policies that work. And an education system that makes the grade. Those are the questions. // Well, I have the answer. "Four More For [Governor] Orr." // You know, Kay's work began the morning after she was elected joy Orr bio America's first Republican woman Governor. // Remember what she Votaliz did? 100 She said she d form a jobs creation council to help small spened towns recover from the farm recession. 11 She wasn't bluffing. Vebrasko's She attacked the problem. She kept her promise. She got results. doors But then, that's not surprising -- for results distinguish Disiness. DLSI Kay's career. She's gotten results for the last 25 years as a State Republican leader. And as Nebraska State Treasurer. She KayOre bio gót results in 1988 as the first woman Chair of the Republican National Platform Committee. And as Governor of the Cornhusker 3 State -- well, her scoreboard is even better than last fall's ? rout of Oklahoma. // They'll never let me back in Norman again. ((You know, Kay's husband Bill likes to tell how he went to 3,11 OF the bank to cash a check. The teller looked up and said, "Are you the wife of the governor?" 11 Embarrassed, she tried to make amends. "What I mean," she continued, "are you Mr. Kay Orr?")) // ((Bill, I know how you feel. It's like Kay is always telling me: "It's fine that you're here, Mr. President. But if you really want to WOW the crowd, bring Barbara. ")) // It's true: As Governor, Kay has become a household name. Why not with stats rivaling Nebraska'a Big Red Machine? More ? ore than 23,000 new jobs and $2.4 billion in new investment since 1987 -- those are Kay Orr victories. So is farm income -- nearly tripled -- and the lowest unemployment rate west of the Mississippi // Nebraska's first-ever child care credit. A Notaliz crusade to improve secondary and higher learning. And mandatory Notalie Pente sentences for drug dealers -- still more victories. And so are And Bill Loey a Drug Advisory Council, wildlife preservation and State income taxes down by $34 million over the past two years. 11 These triumphs have aided the family, the taxpayer -- the Pol. Alm. working people of Nebraska. And Kay needs a second term to 7.716 finish the job she's so effectively begun. Yet the need is not Nebraska's alone. I need her, too, to support the work of our Administration. For we want to make America a kinder, gentler 8th in nation 4 place. // And get more results for more Americans than at any time in our history. // Onion Last Wednesday night, I talked of this in my State of the Union Address. And of the triumphs of 1989. Triumphs like the lowest unemployment rate in 15 years. Inflation at less than 5 per cent. And the low interest rates that remain the farmer's Price P.I. And the longeot peacetive thatis 3030 best friend. economic exponsion called Nations history Yet like Nebraska, what I called "The Idea of America" is 6185 state 03/18/1 something to build upon, not rest upon. So we have sent BDBA legislation to the Congress to confront our most crucial issues. For example, prosperity means little if our kids aren't free Votl.Drug from drugs. So last month I announced the 1990 National Drug Portr. Sidget Control Strategy Phrase II of the comprehensive drug policy we unveiled last year. We've asked Congress for over ten and a half billion dollars in Fiscal Year 1991 a 70 per cent increase Notl. since I took office in 1989. // And I want an expansion of the control Phose # death penalty for drug-related crimes. // Kay Orr supports 13 P these steps. Her initials aren't K.O. for nothing. And that's what she'll help do to crime and drug use. // I need her as Governor to help take back the streets. // Then, there's another priority of our Administration: The Bio education of our kids. // And in that context, recall how the Seboter's 7.266 Imerican great Nebraska author, Willa Cather, once said, "The history of every country begins in the heart of a man or a woman. // Well, Kay Orr knows, as I do, that the future of this country begins with education. So she supports our "Education 5 SABA5 Excellence Act of 1989, " which can help achieve by the year 2000 the education goals that I announced last Wednesday. Union We must ensure that every student in America starts school ready to learn. And that each school has an environment where 1/31/90 kids can learn. Our graduation rate must be no less than 90 per cent. And we must make diplomas mean something. We want U.S. students to be first in the world in math and science achievement. We must guarantee that each American citizen is a skilled, literate worker and citizen. And that every school is drug-free. I need Kay Orr to help make "The Idea of America" mean a decent education for all. / Ecolled "The Idea of America" also means that working parents should have increased child-care options. Our legislation will achieve that goal. // And it means a cleaner America. So we've sent up 30BA the first rewrite of the Clean Air Act in over 10 years. // We 3.21 also want a more abundant Rural America -- where Americans work, S.S.D.A. invest, and save. In the late 1980s, farm income hit near record stats levels. Now, let's make good news even better -- and keep Nebraska strong by keeping agriculture thriving in the 1990s. // BABD First, I want to grant most favored Nation status to the P.8 Soviet Union by the 1990 Summit. This will relax trade barriers between East and West -- expanding markets for American exports. Next, we're going to write a new Farm Bill in 1990. It must Dearers. 447-6185 emphasize market-oriented farm policies giving producers more flexibility to decide what crops to grow. And we need the investment created by passing our capital gains proposal, which 6 would apply to the sale of farmland. Together, these decisions will show what's good for agriculture is good for America. // What's good for all of us, naturally, is that I be brief. So let me close with a story about a common love of mine and Rural America: Fishing. It concerns Mark Twain, who -- like all fishermen -- loved to brag about his exploits. Brown Twain once spent three weeks fishing in the Maine woods, bittle Book ignoring the fact that the state's fishing season had closed. And on the way home, aboard the train, he came upon a stranger. And immediately started telling him about all the fish he'd caught Finally, Mark Twain asked, "By the way, who are you, sir?" The stranger replied, "I'm the state game warden. And who are you? // With that, America's greatest writer nearly swallowed his cigar. And after a long pause he answered, "Well, to be worden perfectly truthful I'm the biggest damn liar in the whole United States. // Truly, Mark Twain loved to brag. But, then, he had much to KeyOrr bio brag about. And so does Nebraska's first elected woman Governor. Kay Orr has made tough decisions -- right decisions. And Voteling their results have enriched Nebraskans from the banks of the Missouri to the Wyoming line. So let's ensure "Four More For [Governor] Orr." And pledge to support one of America's truly great Governors. Thank you for this occasion. God bless you. God bless America. And let's keep Kay Orr the Governor of this great State of Nebraska. # # # # Kay Ur - 6 - I ASK YOU TO SUPPORT OUR STRATEGY TO TAKE BACK THE STREETS FROM CRIME AND DRUGS. // WE NEED MANDATORY TIME FOR FIREARMS OFFENSES. NO DEALS WHEN CRIMINALS USE A GUN. AND AS PHASE II PROPOSES, AN EXPANSION OF THE DEATH PENALTY FOR DRUG-RELATED CRIMES. IN THAT CONTEXT, I ASK YOU TO URGE YOUR STATE LEGISLATURES TO APPROVE THE SAME PENALTY FOR THE KILLING OF LOCAL LAW ENFORCEMENT OFFICERS. LET'S WORK TOGETHER TO STOP THE HOOLIGANS AND THE THUGS. // PHASE II AIMS TO HELP THE TEENAGER TORMENTED BY CRACK. OR THE PREGNANT MOTHER WHOSE DRUG USE IMPERILS HER CHILD. YET DRUGS ARE A NATIONAL, NOT ONLY FEDERAL, PROBLEM. so YOU, Too, HAVE RESPONDED. MACON, GEORGIA, FOR EXAMPLE, HAS STARTED THE MACON-BIBB WAR ON DRUGS. AND IN HOUSTON, LOCAL OFFICIALS AND RESIDENTS OF ACRES HOMES PROJECT HAVE TEAMED TO PURSUE "DRUG FREE TOMORROWS." I VISITED ACRES HOMES LAST MONTH -- AND THE COURAGE OF THAT COMMUNITY IS TRULY INSPIRING. Death Penplty AS of 1988 U.S. Cont. of Mayors electrocution 1st degree murder for Pedl offerses drug Kinglas Dre tried draft (Smith/Blessey) 4:00 P.M. February 1, 1990 KAY PRESIDENTIAL REMARKS: KAY ORR BREAKFAST OMAHA, NEBRASKA THURSDAY, FEBRUARY 8, 1990 Governor Orr, Mayor Morgan, Congressman Bereuter, Congresswoman Smith, future Senator Hal Daub, Ladies and gentlemen. I'm delighted to be in Nebraska. And to join you for this early-morning breakfast. Even though being here at this hour reminds me of the time I told one of my grandkids that the early bird gets the worm. He said: "I think I'll sleep in and have pancakes. // Well, this morning we're having ham and eggs. And saluting a woman who has come a long way since she first worked for the Republican Party in 1963. // She's gone from licking envelopes to licking Democrats. // The great Governor of the State of Nebraska. Kay Orr. // You know, I've been acquainted with Kay since 19_. And I wanted to come here and personally endorse her. I realize you wanted to hear a few words from a prominent national figure who can really fire up a crowd. // Unfortunately, Johnny Carson had to go back to Los Angeles -- so I'm here instead. // I'm here because Kay has made tough choices and right decisions -- as Nebraskans are prone to do. And because her first term has produced results, not empty rhetoric -- exactly 2 what Nebraskans want in a Governor. // Dwight Eisenhower once said, "Our best protection against bigger government in Washington is better government in the States." // Well, let's help Kay keep making government better. // Let's help her win a second term. // This election will decide whether Nebraska enjoys continued prosperity. Or whether it abandons the leadership which has cut the jobless rate in half. This election will decide whether -- on the one hand -- Nebraska has the leadership it takes to win the war on crime and drugs. Or whether -- on the other -- it chooses policies which blame everyone but the criminal. This election will decide whether Nebraska has farm policies that work. And an education system that makes the grade. And whether it has a Governor who embodies the values of honesty, courage, and strength of character. Those are the questions. // Well, I have the answer. "Four More For Orr." // You know, Kay's work began the morning after she was elected America's first Republican woman Governor. // Remember what she did? She said she'd form a jobs creation council to help small towns recover from the farm recession. // She wasn't bluffing. She attacked the problem. She kept her promise. She got results. But then, that's not surprising -- for results distinguish Kay's career. She's gotten results for the last 25 years as a State Republican leade. And as Nebraska State Treasurer. She X got results in 1988 as the first woman Chair of the Republican 3 National Platform Committee. And as Governor of the Cornhusker State -- well, her scoreboard is even better than last fall's rout of Oklahoma. // They'll never let me back in Norman again. ( (You know, Kay's husband Bill likes to tell how he went to the bank to cash a check. The teller looked up and said, "Are you the wife of the governor?" // Embarrassed, she tried to make amends. "What I mean," she continued, "are you Mr. Kay Orr?") ) // ((Bill, I know how you feel. It's like Kay is always telling me: "It's fine that you're here, Mr. President. But if you really want to WOW the crowd, bring Barbara. ")) // It's true: As Governor, Kay has become a household name. Why not with stats rivaling Nebraska'a Big Red Machine? More than 23,000 new jobs and $2.4 billion in new investment since 1987 -- those are Kay Orr victories. So is farm income -- nearly tripled -- and the lowest unemployment rate west of the Mississippi. // Nebraska's first-ever child care credit. A crusade to improve secondary and higher learning. And mandatory sentences for drug dealers -- still more victories. And so are a Drug Advisory Council, wildlife preservation, and State income taxes down by $34 million over the past two years. // These triumphs have aided the family, the taxpayer -- the working people of Nebraska. And Kay needs a second term to finish the job she's so effectively begun. Yet the need is not Nebraska's alone. I need her, too, to support the work of our Administration. For we want to make America a kinder, gentler 4 place. // And get more results for more Americans than at any time in our history. // Last Wednesday night, I talked of this in my State of the Union Address. And of the triumphs of 1989. Triumphs like the lowest unemployment rate in 15 years. Inflation at less than 5 per cent. And the falling interest rates that remain the farmer's best friend. Yet like Nebraska, what I called "The Idea of America" is something to build upon, not stand upon. So we have sent legislation to the Congress to confront our most crucial issues. For example, prosperity means little if our kids aren't free from drugs. So last month I announced the 1990 National Drug Control Strategy -- Phrase II of the comprehensive drug policy we unveiled last year. We've asked Congress for over ten and a half billion dollars in Fiscal Year 1991 -- a 41 per cent increase in outlays over the current year. // And I want an expansion of the death penalty for drug-related crimes. // Kay Orr supports these steps. Her initials aren't K.O. for nothing. And that's ? what she'll help do to crime and drug use. // I need her as Governor to help take back the streets. // Then, there's another priority of our Administration: The education of our kids. // And in that context, recall how the great Nebraska author, Willa Cather, once said, "The history of every country begins in the heart of a man or a woman. " // Well, Kay Orr knows, as I do, that the future of this country begins with education. So she supports our "Education 5 Excellence Act of 1989," which can help achieve by the year 2000 the education goals that I announced last Wednesday. These goals are to see that each student starts school ready to learn. And that each school has an environment where kids can learn. To achieve a 90 per cent graduation rate. And make diplomas mean something. We want U.S. students to be first in the world in math and science achievement. We must ensure that each American citizen is a skilled, literate worker and citizen. And that every school is drug-free. Already, you've made great strides in Nebraska. I need Kay Orr to help win the race to make American education No. 1 again. // Yes, our goal is a freer America. So we have proposed child-care legislation to increase options for working parents. // And a cleaner America. So we've sent up the first rewrite of the Clean Air Act in over 10 years. // We also want a more abundant Rural America -- where Americans work, invest, and save. In the late 1980s, farm income hit near record levels. Now, let's make good news even better -- and keep Nebraska strong by keeping agriculture thriving in the 1990s. // J First, I want to grant more favored Nation status to the Soviet Union by the 1990 Summit. This will relax trade barriers between East and West -- expanding markets for American exports. Next, we're going to write a new Farm Bill in 1990. It must emphasize market-oriented farm policies giving producers more flexibility to decide what crops to grow. And we need the investment created by passing our capital gains proposal, which 6 would apply to the sale of farmland. Together, these decisions will show what's good for agriculture is good for America. // What's good for all of us, naturally, is that I be brief. So let me close with a story about a common love of mine and Rural America: Fishing. It concerns Mark Twain, who -- like all fishermen -- loved to brag about his exploits. Twain once spent three weeks fishing in the Maine woods, ignoring the fact that the state's fishing season had closed. And on the way home, aboard the train, he came upon a stranger. And immediately started telling him about all the fish he'd caught. Finally, Mark Twain asked, "By the way, who are you, sir?" The stranger replied, "I'm the state game warden. And who are you?" // With that, America's greatest writer nearly swallowed his cigar. And after a long pause he answered, "Well, to be perfectly truthful, I'm the biggest damn liar in the whole United States." // Truly, Mark Twain loved to brag. But, then, he had much to brag about. And so does Nebraska's first elected woman Governor. Kay Orr has made tough decisions -- right decisions. And their results have enriched Nebraskans from the banks of the Missouri to the Wyoming line. So let's ensure "Four More For Orr." And pledge to support one of America's truly great Governors. Thank you for this occasion. God bless you. God bless America. And let's keep Kay Orr the Governor of this great State of Nebraska. # # # # Blessey THE WHITE HOUSE WASHINGTON SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR OMAHA, NEBRASKA FEBRUARY 7 - 8, 1990 EVENTS: Staff Photo Breakfast for Governor Kay Orr Viewing of Static Display SAC Briefing Phone Call to SAC Personnel Worldwide Intelligence Operations Center Briefing DRESS: Men - Business Suit Women - Day Dress CONTACT: Office of Presidential Advance John G. Keller, Jr. - 202/456-7565 Trip Coordinator Peggy Hazelrigg - 202/456-7565 Omaha, Nebraska Signal - 202/395-1500 402/399-9254 ADVANCE: Leo Tomeu - LEAD Kathy McCoy - PRESS Sam Tong - USSS Bruce Caughman - MIL. AIDE Stuart Morrison - WHCA Larry Largent - AFI WEATHER: Partly Cloudy/low 40's SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR OMAHA, NEBRASKA FEBRUARY 7 - 8, 1990 7:25 pm THE PRESIDENT arrives Omaha Municipal Airport, (C.S.T.) Eppley Field, Omaha, Nebraska. Met by: The Honorable Kay Orr and Mr. Bill Orr Governor of Nebraska The Honorable P. J. Morgan Mayor of Omaha The Honorable Charles Thone Former Governor of Nebraska BQ '88 Nebraska Chairman Mr. Norm Riffel Nebraska Republican Party Chairman Mrs. Sallie Folsom Republican National Committeewoman Mr. Duane Acklie Republican National Committeeman Mrs. Ann Batchelder Nebraska BQ '88 Finance Chairwoman 7:30 pm THE PRESIDENT departs Omaha Airport en route Marriott Hotel. MOTORCADE ASSIGNMENTS: Lead L. Tomeu Spare T. McBride Doctor LIMO THE PRESIDENT Follow Up Control A. Card Gen. Scowcroft Mil. Aide Support M. Fitzwater Official Photographer S. Rogich J. Keller Medic Staff I J. Cicconi D. Demarest Camera I Camera II G. Fendler Wire I Wire II Staff Van Guest Van Press Van I J. Herrick Press Van II Press Van III (Drive Time: 25 Minutes) GUEST AND STAFF INSTRUCTIONS: Upon arrival at Marriott Hotel, please proceed to Room 430 (Staff Office) for Room Assignments and Keys. Page Two 7:55 pm THE PRESIDENT arrives Marriott Hotel and proceeds to Suite. Met by: Mr. Joseph Tramontozzi General Manager, Marriott Hotel Mr. Jay Elliott Director of Sales, Marriott Hotel Ms. Shirley Hornbeck Sales Manager, Marriott Hotel 8:00 pm THE PRESIDENT arrives Suite for RON. NOTE: Mrs. Bush will join THE PRESIDENT at this time. Thursday, February 8, 1990 GUEST AND STAFF INSTRUCTIONS: 7:30 am Baggage Call. Please place all unlocked baggage outside your room at this time. 7:40 am Guests and Staff should board Motorcade in front of Hotel at this time. 7:50 am THE PRESIDENT and Mrs. Bush depart Suite and proceed to Motorcade. 7:55 am THE PRESIDENT and Mrs. Bush board Motorcade and depart Marriott Hotel en route Peony Park. Page Three MOTORCADE ASSIGNMENTS: Lead L. Tomeu Spare T. McBride Doctor LIMO THE PRESIDENT Mrs. Bush Follow Up Control A. Card Gen. Scowcroft Mil. Aide Support M. Fitzwater Official Photographer S. Rogich J. Keller P. Swift Medic Staff I J. Cicconi D. Demarest Camera I Camera II G. Fendler Wire I Wire II Staff Van Guest Van Press Van I J. Herrick Press Van II Press Van III (Drive Time: 10 Minutes) Page Four GUEST AND STAFF INSTRUCTIONS: Upon arrival at Peony Park, Guests and Staff will be escorted to Staff Viewing Area. 8:05 am THE PRESIDENT and Mrs. Bush arrive Peony Park Ballroom and proceed to Holding Room. Met by: Governor Kay Orr and Mr. Bill Orr Governor of the State of Nebraska 8:07 am THE PRESIDENT and Mrs. Bush arrive Holding Room and hold briefly. 8:10 am THE PRESIDENT and Mrs. Bush, accompanied by Governor Orr and Bill Orr, depart Holding Room and proceed to Staff Photo Area. EVENT: STAFF PHOTO OFFICIAL PHOTOGRAPHER ONLY 8:12 am THE PRESIDENT and Mrs. Bush arrive Staff Photo Area and begin participation in Staff Photo. 8:25 am THE PRESIDENT and Mrs. Bush conclude participation in Staff Photo, depart Staff Photo Area and proceed to Off-Stage Announcement Area. Page Five 8:27 am THE PRESIDENT and Mrs. Bush arrive Off-Stage Announcement Area and hold briefly. EVENT: BREAKFAST FOR GOVERNOR KAY ORR OPEN PRESS RUFFLES AND FLOURISHES OFF STAGE ANNOUNCEMENT HAIL TO THE CHIEF BRIEF REMARKS 8:28 am THE PRESIDENT and Mrs. Bush, accompanied by Governor and Mr. Orr, are announced into Ballroom, proceed to Head Table and take their Seats. 8:29 am Mayor P. J. Morgan introduces Governor Orr 8:30 am THE PRESIDENT is introduced for Brief Remarks by Governor Orr. 8:35 am THE PRESIDENT makes Brief Remarks. 8:45 am THE PRESIDENT concludes Brief Remarks, and, with Mrs. Bush, departs Ballroom and proceeds to Holding Room. 8:47 am THE PRESIDENT and Mrs. Bush arrive Holding Room and hold briefly. 8:49 am THE PRESIDENT and Mrs. Bush depart Holding Room and proceed to Motorcade. Page Six 8:50 am THE PRESIDENT and Mrs. Bush board Motorcade and depart Peony Park en route SAC Headquarters, Offutt Air Force Base. MOTORCADE ASSIGNMENTS: Lead L. Tomeu Spare T. McBride Doctor LIMO THE PRESIDENT Mrs. Bush Follow Up Control A. Card Gen. Scowcroft Mil. Aide Support M. Fitzwater Official Photographer S. Rogich J. Keller P. Swift Medic Staff I J. Cicconi D. Demarest Camera I Camera II G. Fendler Wire I Wire II Staff Van Guest Van Press Van I J. Herrick Press Van II Page Seven Press Van III (Drive Time: 30 Minutes) GUEST AND STAFF INSTRUCTIONS: Upon arrival at SAC Static Display Area, only Briefing Room Participants will participate in Static Display with THE PRESIDENT. Remaining Guests and Staff will be escorted to Staff Viewing Area or may board Air Force One. 9:20 am THE PRESIDENT and Mrs. Bush arrive Offutt Air Force Base and proceed via Foot to Static Display Area. Met by: General and Mrs. John (Jack) T. Chain, Jr. (Jodie) Commander, SAC Headquarters EVENT: VIEWING OF STATIC DISPLAY OPEN PRESS 9:25 am THE PRESIDENT and Mrs. Bush, accompanied by General and Mrs. Chain, begin participation in Viewing of Static Display. 9:50 am THE PRESIDENT and Mrs. Bush conclude participation in Viewing of Static Display and proceed to board Motorcade. Page Eight 9:55 am THE PRESIDENT and Mrs. Bush board Motorcade and depart Static Display Area en route SAC Headquarters. MOTORCADE ASSIGNMENTS: Same as on Arrival. (Drive Time: 3 Minutes) GUEST AND STAFF INSTRUCTIONS: Upon arrival at SAC Headquarters, Guests and Staff will be escorted to Staff Holding Room during the Briefing. During the Phone Call to SAC Personnel, Guests and Staff will be escorted to Staff Viewing Area. Following Phone Call, Guests and Staff will be escorted back to Staff Holding Room. 9:58 am THE PRESIDENT and Mrs. Bush arrive SAC Headquarters and proceed to Command Center Conference Room. NOTE: Mrs. Bush, escorted by Mrs. Chain, will assume a separate tour of SAC at this time. EVENT: SAC BRIEFING CLOSED PRESS 10:00 am THE PRESIDENT, accompanied by General Chain, arrives Conference Room and begins participation in SAC Briefing. Page Nine 10:30 am THE PRESIDENT concludes participation in in Briefing and, accompanied by General Chain, proceeds downstairs to Command Center Operations Room. EVENT: PHONE CALL TO SAC PERSONNEL WORLDWIDE PRESS POOL 10:33 am THE PRESIDENT arrives Command Center Operations Room and proceeds to his Seat. 10:35 am THE PRESIDENT begins participation in Telephone Call to SAC Personnel Worldwide. 10:45 am THE PRESIDENT concludes participation in Phone Call, departs Command Center Operations Room and proceeds to Intelligence Operations Center. EVENT: INTELLIGENCE OPERATIONS CENTER BRIEFING CLOSED PRESS 10:50 am THE PRESIDENT arrives Intelligence Operations Center and proceeds to Briefing Room. 10:51 am THE PRESIDENT arrives Briefing Room and begins participation in Briefing. Met by: Major General John Clapper, Jr. Commander, Intelligence Operations Center Page Ten 11:10 am THE PRESIDENT concludes participation in Briefing, and begins participation in Intelligence Operations Center Tour. 11:20 am THE PRESIDENT concludes participation in Intelligence Operations Center Tour and proceeds to board Motorcade. NOTE: Mrs. Bush re-joins THE PRESIDENT at this time. MOTORCADE ASSIGNMENTS: Same as on Arrival. (Drive Time: 3 Minutes) 11:23 am THE PRESIDENT and Mrs. Bush arrive Air Force One and proceed to board Air Force One. 11:25 am THE PRESIDENT and Mrs. Bush board Air Force One. 11:30 am THE PRESIDENT and Mrs. Bush depart Omaha, Nebraska (C.S.T.) en route Columbus, Ohio. (Flying Time: 1 Hour 35 Minutes) (Interchange: Yes) (Time Change: Ahead 1 Hour) (Food Service: Lunch) Page Eleven FEB 05 '90 15:24 NEBRASKA GOVERNOR'S OFFICE P.1 STATE OF NEBRASKA KAY A. ORR, GOVERNOR OFFICE OF THE GOVERNOR ROOM 2316, STATE CAPITOL LINCOLN, NEBRASKA 68509 (402) 471-2244 Fax No. (402) 471-0805 DATE 2.5.90 FACSIMILE TRANSMISSION NO. OF PAGES TO BE TRANSMITTED (INCLUDING COVER): 2 TO BE DELIVERED TO: Stephanie Blessey FROM THE OFFICE OF: Natalie seetz REMARKS: OFFICE OF THE GOVERNOR, BOX 94848, LINCOLN, NEBRASKA 68509-4848, PHONE (402) 471-2244 AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER FEB 05 '90 15:25 NEBRASKA GOVERNOR'S OFFICE to STATE UNEMPLOYMENT RATES your Room (1 October 1989 Nover Rank State Rate Rank State Rate Note 1 Hawaii 2.52% 1 Delaware 2.78% 2 Nebraska 2.75 3 No. Carolina 3.06 Hawaii is 2 Hawaii 2.79 3 No. Carolina 2.83 4 Utah 3.48 West of Miss. 4 Nebraska 2.88 5 Delaware 3.49 5 Connecticut 3.37 6 Vermont 3.51 All others 6 Minnesota 3.49 7 Connecticut 3.54 are higher 7 Utah 3.52 8 Maryland 3.63 8 Maryland 3.56 9 Minnesota 3.65 9 Vermont 3.74 10 Maine 3.73 10 Kansas 3.89 OTHER WESTERN STATES (Prelim) October 1989 November 1989 Rank State Rate Rank State Rate 11 No. Dakota 3.83% 11 So. Dakota 3.92% 12 So. Dakota 3.88 17 No. Dakota 4.10 14 Iowa 3.90 18 Iowa 4.15 17 Idaho 4.05 20 Idaho 4.35 21 Kansas 4.19 21 Arizona 4.40 23 California 4.56 24 Oklahoma 4.57 24 Oregon 4.57 26 Colorado 4.76 26 Colorado 4.76 28 Nevada 4.82 28 Arizona 4.83 29 California 4.89 29 Oklahoma 4.87 32 Oregon 5.17 30 Nevada 4.90 34 Missouri 5.33 34 Wyoming 5.16 35 Washington 5.53 35 Missouri 5.18 38 New Mexico 5.80 36 Washington 5.22 39 Wyoming 5.81 37 Montana 5.29 41 Montana 5.96 38 Arkansas 5.48 42 Arkansas 6.08 41 New Mexico 5.93 45 Alaska 6.90 42 Texas 6.03 47 Texas 6.91 48 Alaska 7.14 Source: U.S. Department of Labor, Bureau of Labor Statistics DED Research, 2/5/90 STATE OF NEBRASKA KAY A. ORR, GOVERNOR GOVERNOR'S SEAL STATE OF DOUGLAS E. PARROTT COMMUNICATIONS DIRECTOR Jeanie Here is a biography, fact sheet on accomplishments and the Governor's 1990 State of the State address. If you can work it in, a great deal of our campaign theme is built around "getting results for people. " We have gotten results through new jobs, better education for children, a new attitude, and our efforts to protect families from drug abuse. Critics have hit us hardest on tax policies (you should skip this issue) and on being too pro-business. The more the President can say about the Governor being a leader, making tough decisions that are best for people, the better. If you have any questions or need more information, please call. EXECUTIVE SUITE STATE CAPITOL P.O. BOX 94848, LINCOLN, NEBRASKA 68509-4848, (402) 471-2244 BIOGRAPHY OF GOVERNOR KAY ORR Kay A. Orr made history on November 4, 1986 when she became the first woman to be elected Governor of the State of Nebraska and the first Republican woman Governor in history. The Governor was born in Burlington, Iowa on January 2, 1939. She received her public schooling in Iowa and California, and then attended the University of Iowa. She is married to William D. Orr, a Senior Vice-President and Director of Agencies for Woodman Accident and Life Insurance Company. They have two children son John and daughter, Suzanne Orr Gage. The Governor has one grandson. Governor Orr has been an active leader in the Republican party at local, state and national levels for the past 25 years and has been an elected delegate to the past four Republican national conventions. In June of 1981 she was appointed Nebraska State Treasurer, and in November of 1982 was elected to a full term as State Treasurer, the first woman ever elected to a statewide constitutional office in Nebraska. In 1988 Governor Orr had the distinction of serving as the first woman chair of the Republican National Platform Committee. As a member of the National Governor's Association, she currently chairs the Transportation and Commerce committee, serves on the Agriculture and Rural Development committee, and is a member of the NGA's Task Force on Foreign Markets. The Governor also serves on the Commission for Presidential Debates. Governor Orr has made job creation and education her top priorities. Since taking office the Governor has spread a message nationwide that Nebraska is Open for Business. Her Jobs Creation legislation is responsible for more 2-billion dollars in planned investments and the creation of over 21,000 jobs in the state. She has been a friend to education through increased funding for local schools, our colleges and University, as well as for the salaries we pay our teachers and faculty. In 1989 the Governor led an effort to return more than $120 million in property and income tax relief. In 1990, the Governor has proposed a $98 million dollar property tax relief plan for taxpayers. She has also offered a comprehensive drug plan that includes increased enforcement, tougher laws, improved education, and enhanced drug treatment programs. NEBRASKA NEBRASKA 519 Pacific mittees: Arms Control, Oceans, International Operations, and Affairs; Western Hemisphere Affairs (Chairman). Gov. Charles Thone (R) Elected 1978, term expires 1983; b. Jan. 4, 1924, Hartington; U. of Neb., J.D. 1950; Presbyterian. RPN NFU LCV. CFA NAB NSI ACA NTU Career Army, WWII; Deputy Secy. of State of Neb., 1950-51; Asst. Atty. Gen. of Neb., 1951-52; Asst. U.S. Dist. Atty., Lincoln Ofc., 40 60 51 45 50 58 80 1952-54; Admin. Asst. to U.S. Sen. Roman Hruska, 1954-59; Practicing 45 74 - - 36 - - 69 atty., 1959-71; U.S. House of Reps., 1971-79. 45 Offices State Capitol, Lincoln 68509, 402-471-2244. ) Egypt-Saudi Arms AGN ) Draft Restr Pardon AGN 11) Hosptl Cost Contnmnt FOR ) Wheat Price Support FOR 12) Clinch River Reactor FOR 1 Panama Canal Treaty AGN 13) Pub Fin Cong Cmpgns FOR Election Results Labor Law Rev Clot AGN 14) ERA Ratif Recissn AGN 15) Med Necssy Abrtns AGN 1978 general Charles Thone (R) 275,473 (56%) Gerald T. Whelan (D) 216,754 (44%) 1978 primary Charles Thone (R) 89,378 (45%) (D) 313,805 Robert A. Phares (R) 48,402 (25%) ster (R) (53%) 279,284 ($237,613) Stan Juelfs (R) 43,828 (22%) (D) (47%) 79,988 ($391,287) Two others (R) 15,546 (8%) (49%) 77,384 1974 general J.J. Exon (D) 267,012 (59%) (47%) 7,194 Richard D. Marvel (R) 159,780 (35%) 1 (R) (4%) 240,894 Ernest Chambers (Ind.) 24,320 (5%) n (D) (53%) 217,681 (47%) mes .D.; Exon (D) Elected 1978, seat up 1984; b. Aug. 9, 1921, FIRST DISTRICT home, Lincoln; U. of Omaha; Episcopalian. The 1st congressional district of Nebraska is a band of 27 counties in the eastern part of the state. Outside of Lincoln, the district's largest city and state capital, the economy of the 1st is n's tral Inc., office equip. business 1954-70; Vice Chm., Neb. St. my, WWII; Branch Mgr., Universal Finance Co., 1946-54; based almost entirely on agriculture. The political inclination of the region is Republican, of Comm., 1964-68; Gov. of Neb., 1970-78. course, but there are a couple of counties with large German Catholic communities which have faithfully supported Democrats of such diverse origin as John Kennedy and Jimmy Carter. 65. 29 DSOB, 202-224-4224. Also Fed. Bldg., Omaha 68102, Lincoln, the capital and-more important to people here-home of the University of Nebraska Cornhuskers, is traditionally Republican. But the city's large number of state employees have sometimes joined members of the university community to swing Lincoln into the Democratic S and Armed Services (9th). Subcommittees: Arms Control; column. But on a number of occasions Lincoln, with all its state government employees, seems to Personnel; Research and Development. have preferred Republicans to economy-minded Democrats. In 1970 this was one of the few parts of the state that did not favor Governor James Exon, and in 1978 it gave a solid margin to Charles th). Thone over Exon's Lieutenant Governor, Gerald Whalen. The 1st district has seen a number of close congressional elections in the sixties and seventies. A on (9th). Subcommittees: Aviation; Communication; Surface Democrat captured the district in 1964 and lost close races in 1966 and 1968; he ran as an Independent in 1970 and split the Democratic vote, helping to elect Thone with a bare majority. Thone had a close contest in 1974 against state Democratic Chairman Hess Dyas, and there was another seriously contested race in 1978, when Thone stepped down to run for governor. Dyas was again the Democratic nominee, while the Republican nomination was won in a tough primary by Douglas Bereuter. He had worked as a top appointee of Governor Norbert Tiemann, the Republican whose tax policies helped elect Exon, and is considered a moderate. The reputation of not being opposed to all government programs helped him carry Lincoln; the Republican Party label helped him carry most of the rural counties in the district. His victory, particularly given the 334,096 (68%) ($234,862) past history of the district, suggests that he should become well established in this district, and 159,706 inopposed (32%) ($218,148) might even make him a contender for statewide office. 301,841 (53%) ($250,392) Census Data Pop. 494,335. Central city, 30%; suburban, 6%. Median family income, $8,203; 265,922 (47%) ($38,629) families above $15,000: 13%; families below $3,000: 12%. Median years education, 12.2. The Voters Median voting age 45. Employment profile White collar, 43%. Blue collar, 27%. Service, 15%. Farm, 15%. Ethnic groups Total foreign stock, 14%. Germany, 6%. 710 NEBRASKA NEBRASKA 711 NEBRASKA - Congressional Districts, Counties, and Selected Places (3 Districts) NEBRASKA 3 103' 5 102' 7 101* 8 9 100" 10 11 99° 12 13 98° 14 15 97° 16 17 96' 18 19 95 - "The traveler crossing Nebraska," wrote the WPA Guide in the late 1930s, "gets an SOUTH DAKOTA of broad fields, deep skies, wind, and sunlight; clouds racing over prairie swells; herds impression of 43' BOYD grazing on the sandhills; red barns and white farmhouses surrounded by fields of tasseling cattle KEYA PAHA B DAWES and ripening wheat; windmills and wire fences; and men and women who take their living con KNOX CEDAR DIXON CHERRY the soil." That was two generations after Nebraska was settled, in one giant rush, in the from SIOUX SHERIDAN BROWN ROCK HOLT C when its population increased from 452,000 to 1,062,000 in a single decade, more than 1880s, it BOX BUTTE ANTELOPE PIERCE DAKOTA WAYNE THURSTON 42* increased ever since (it is now 1.6 million). Within that same decade Nebraska became a has IOWA SCOTTS GRANT HOOKER THOMAS BLAINE GARFIELD WHEELER MADISON CUMING LOUP BURT regional center and Lincoln a state capital. Today Nebraska remains heavily dependent major D BLUFF MORRILL BOONE WASHINGTON farming and related industries, and Omaha and Lincoln are still its only significant cities. This on GARDEN ARTHUR DODGE BANNER McPHERSON LOGAN VALLEY GREELEY PLATTE 2 a state that sprang suddenly into existence and has changed strikingly little in the years since. CUSTER NANCE Omaha E KIMBALL CHEYENNE KEITH HOWARD MERRICK That is not what its founders intended: they hoped Nebraska would develop into diversified 3 SHERMAN DOUGLAS POLK BUTLER SARPY DEUEL SAUNDERS LINCOLN farming, industrial and commercial centers like Ohio or Illinois or Missouri or Minnesota. But Grand CASS Island DAWSON BUFFALO YORK SEWARD Lincoin PERKINS F COLORADO HALL while the 1880s were a time of plentiful rain here, the 1890s were a decade of drought, and 1 OTOE ANCASTER Nebraska stopped growing. Many rural counties and even Omaha lost population, and have been CHASE HAYES FRONTIER GOSPER PHELPS KEARNEY ADAMS CLAY FILLMORE SALINE NEMAHA MISSOURI exporting people ever since; and the creative energies in the economy seem to have skipped over G GAGE DUNDY HITCHCOCK RED FURNAS HARLAN WILLOW FRANKLIN WEBSTER NUCKOLLS THAYER EFFERSON PAWNEE RICHARDSON the Great Plains and moved far to the West. Most of Nebraska's settlers, like most migrants, 40" were young people, optimistic and motivated, in search of opportunity, with families full of H KANSAS children. Fully 48% of the one million Nebraskans of 1890 were children, and a very large LEGEND percentage of them moved elsewhere when they grew up. Since 1890, Nebraska has exported 2 Congressional district number Congressional district boundary SCALE people to the West, the great metropolitan areas of the Midwest, and to Texas and the Place 100,000 more inhabitants N 20 40 60 80 100 Knometers - 39" Southwest; since 1940, it has grown in percentage terms less than all but seven other states Place 50.000 100.000 inhabitants Place 25,000 50.000 inhabitants 20 40 60 80 100 Miles (Pennsylvania, West Virginia, Mississippi, Arkansas, Iowa, and the Dakotas). Only 28% of State capital underlined J Nebraska's 1.6 million residents today are children, meaning that there are actually 60,000 fewer children then there were 90 years ago. 94 Department Commerce BUREAU THE CENSUS K 103* 102" 101* 8 100° 10 11 99" 12 13 98" 14 15 97" 16 17 * 18 19 The sudden boom of the 1880s and the bust of the 1890s produced the most colorful-and - districts established May 28, 1981: all other boundaries are January 1980. atypical-politics of Nebraska's history: namely the populist movement and William Jennnings Bryan, the "silver tounged orator of the Platte." Bryan was only 36 when he delivered the famous Cross of Gold speech at the 1896 Democratic National Convention and was swept to the Boosalis, the mayor of Lincoln, in 1986. (This easy acceptance of women as leaders is not so Democratic nomination; he was thought so radical that Democratic President Grover Cleveland surprising when you remember pioneer women built sod houses, raised children, and taught wouldn't support him, but Bryan still won 47% of the vote. Nebraskans supported Bryan, whose them the classics of Western culture.) In her first term, spurred by the chief executive of giant program may have been forward-looking, but whose purpose was retrograde: to restore ConAgra, Orr and the legislature in 1987 pushed through a tax package lowering the top rates of Nebraska to the prosperity and prospects it enjoyed a few years before. Bryan won the the state income tax and cutting some business taxes; in return, ConAgra expanded operations Democratic nomination again in 1900 and 1908 but never came as close to winning as he did the rather than make good on its threat to move its headquarters from Omaha. Orr argues that this first time. By then Nebraska had already gone to the Republicans, and Bryan himself eventually program will produce much needed economic growth; some opponents say that it is an moved to Florida. Since Bryan's time, Nebraska's most notable politician has been George Norris, representative (1909-13) and Senator (1913-43). During the progressive era, Norris led election. undeserved break for the rich and well-placed. This may turn out to be a central issue in the 1990 the House rebellion against Speaker Joseph Cannon; during the 1930s, he pushed through the Orr's other major initiative did not turn out quite as she hoped. In March 1987, when Senator Norris-LaGuardia Anti-Injunction Act, the first national pro-union legislation, and the Tennes Edward Zorinsky suddenly died, she spurned the pleas of Congressman Hal Daub and former see Valley Authority. Wate chairman Kermit Brashear, who had their eyes on the seat, and appointed agribusiness Governor. Heavily Republican, Nebraska has had Democratic governors for most of the last education and backing Orr's candidacy in 1986. In 1988, Karnes beat Daub after a bitter executive David Karnes, whose main political experience was in serving on the Omaha board of 20 years, thanks largely to the personal popularity of Jim Exon and Bob Kerrey, both of whom have gone on to become Senators. The state's current governor, Kay Orr, is a Republican, # against primary, but ran far behind Bob Kerrey in the general; probably no Republican had a chance aggressive conservative who started off as a staffer to Governor Charles Thone, became state like Kerrey, but the intra-party fight did not help. If Orr decides to seek reelection in 1990 treasurer in 1981, and won the nation's first two-woman governor's race against Democrat Helen whom says she'll announce in January of that year), she might face Lincoln mayor Bill Harris, some speculate may seek the Democratic nomination. 712 NEBRASKA NEBRASKA 713 Senators. Nebraska's senior Senator is James Exon, who served eight years as a popular just getting his introduction to national and international issues, with which he doesn't claim to pennypinching governor in the 1970s and was elected to the Senate in 1978. He combines be deeply conversant. somewhat conservative tendencies on issues with a temperamental inclination to be a team Presidential politics. Nebraska is one of the most Republican of states in presidential player with his fellow Democrats. He boasts of how he turns one-quarter of his office allowance elections. But Farm Belt discontent sometimes tips it a little toward the Democrats: in 1980 it back to the government, and he was one of the first Armed Services Democrats to announce he was the second most Republican state, in 1984 the fourth, in 1988 the eighth. There is a bit of an would vote against John Tower for secretary of Defense. On the Armed Services Committee he urban-rural split, with greater Omaha and Lincoln, which now cast almost half the state's votes, is sometimes skeptical of weapons projects, but not so nearly as often as some other Democrats; running less Republican than the western counties, which vote like adjacent Wyoming. like most Nebraskans he is concerned about the big SAC Air Force base near Omaha. On the Nebraska has a presidential primary in May which once attracted attention; the whole Budget Committee, he is skeptical about Gramm-Rudman, charging that rather than forcing national press followed Robert Kennedy and Eugene McCarthy out here in 1968 and took note real action it has produced fake actions to balance the budget. Exon's legislative accomplish- when Frank Church won in 1976. No more. The big event in the 1988 primary was the ments tend to come in the interstices between big issues: he backed extended air service to small Republican Senate race; the presidential nominations were already sewed up. towns, a clean grain study, raising the interstate speed limit to 65, and minting the American Congressional districting. Nebraska hasn't lost a House seat since the Census of 1960, and it eagle gold coin. He has pushed legislation to require disclosure of foreign investment in the changes its House district lines just a little every 10 years. It's likely to do so again after the 1990 United States and to block foreign takeovers if they are believed to endanger national security. Census. Exon remains popular in Nebraska, but he has not won a race by a big margin for more than a decade. In 1984 his Republican opponent, Nancy Hoch, attacked him for being not so much a The People: Est. Pop. 1988: 1,601,000; Pop. 1980 1,569,825, up 2.0% 1980-88 and 5.7% 1970-80; liberal as a backbencher, who had no major accomplishments; that infuriated Exon, who cited 0.66% of U.S. total, 36th largest. 17% with 1-3 yrs. col., 16% with 4+ yrs. col.; 10.7% below poverty all manner of bills he had sponsored but still could not credibly portray himself as a national level. Single ancestry: 22% German, 6% English, 4% Irish, 2% Swedish, Polish, 1% French, Italian, leader. Like many incumbents, Exon profited from contributions by PACs, which gave him over Dutch, Norwegian. Households (1980): 72% family, 38% with children, 63% married couples; 31.6% housing units rented; median monthly rent: $170; median house value: $38,000. Voting age pop. (1980): $500,000 but up to mid-October had given Hoch only $57,000. Even so, Exon won by only 52%- 1,122,655; 3% Black, 1% Spanish origin. Registered voters (1988): 898,959; 378,360 D (42%), 455,472 48%. He is expected to run again in 1990, at age 69, and he is likely to be prepared for a tough R (51%), 65,127 unaffiliated and minor parties (7%). race. Possible GOP candidates are 1st District Congressman Doug Bereuter and Douglas County attorney Ron Staskiewicz. Bob Kerrey, Nebraska's junior Senator, is one politician who stirs genuine passion from his 1988 Share of Federal Tax Burden: $4,972,000,000; 0.56% of U.S. total, 34th largest. constituents. After almost a decade in politics, he still seems anything but a professional politician. He is a man of striking determination: serving in the Navy in Vietnam, he won the 1988 Share of Federal Expenditures Congressional Medal of Honor, and then made speeches against the war; though he lost his right Total Non-Defense Defense leg below the knee, he runs the marathon. A restaurant owner and a political unknown, he ran for Total Expend- $5,935m (0.67%) $5,112m (0.78%) $958m (0.42%) governor in 1982 and ousted incumbent Charles Thone. While in office, he dated the sultry St/Lcl Grants 712m (0.62%) 711m (0.62%) 1m (0.82%) movie star Debra Winger, which seemed to charm Nebraskans. In 1986, Kerrey shocked most Salary/Wages 832m (0.62%) 383m (0.57%) 449m (0.57%) politicians by deciding at 43 not to seek reelection, despite 70%-plus job approval ratings (and Pymnts to Indiv 2,679m (0.65%) 2,564m (0.66%) 115m (0.62%) Procurement 392m even though voters repealed his seat belt law and sales tax for education); in 1988, he surprised (0.21%) 135m (0.29%) 392m (0.21%) Research/Other 1,319m (3.53%) 1,318m (3.56%) 1m (3.56%) very few by winning the Senate seat held by appointee David Karnes after the death of Edward Zorinsky. The most bitter part of that Senate race came not in the general, but in the Republican Political Lineup: Governor, Kay A. Orr (R); Lt. Gov., Bill Nichol (R); Secy. of State, Allen J. primary between Karnes and Omaha Congressman Hal Daub. After Daub spoke favorably of an Beermann (R); Atty. Gen., Robert Spire (R); Treasurer, Frank Marsh (R); Comptroller, Ray A. C. across-the-board spending freeze, a Karnes ad charged he'd cut Social Security, and Karnes Johnson (R). Unicameral legislature, 49 (no party affiliation). Senators, J. James Exon (D) and Robert noted that Daub lived in a $400,000 Washington area house. Daub said Karnes's policy of not Kerrey (D). Representatives, 3 (2 R and 1 D). finishing old water projects before starting new ones would make Nebraska a desert, and noted that Karnes supported a May 1987 vote that would have cut social security COLAs. There was 1988 Presidential Vote 1984 Presidential Vote an edge of personal nastiness to the contest, which Karnes finally won by piling up a 2 to I Bush (R) 397,956 (60%) Reagan (R) 460,054 (71%) margin in the west compared to Daub's 3 to 2 margin in the Omaha area. But Karnes made to a Dukakis (D) 259,235 (39%) Mondale (D) 187,866 (29%) couple of classic gaffes, agreeing in a pre-primary debate that he would accept tax increases cut deficits, and saying after the primary, "We need fewer farmers at this point in time." This off 1988 Democratic Presidential Primary 1988 Republican Presidential Primary Dukakis 106,334 (63%) Bush 138,784 (68%) effectively prevented him from making any headway against Kerrey's lead, and he fell Jackson 43,380 (26%) Dole 45,572 (22%) Republican moneygivers' priority lists, and ended up losing by a 57%-42% margin. Gephardt 4,948 (5%) Robertson 10,334 (5%) In the Senate, Kerrey got some plum committee assignments-Agriculture, a plus for any Hart 4,220 (2%) Kemp 8,423 (4%) Nebraska Senator, and Appropriations, not usually given to freshmen. His personal magnetism he Gore 2,519 (1%) leads many who know him to wonder whether he might be a presidential candidate some day; is Simon 2,104 (1%) starts out well known in the western part of the first caucus state, Iowa. In the meantime he Uncommitted 4,763 (3%) 714 NEBRASKA NEBRASKA 715 Key Votes GOVERNOR 1) Cut Aged Housing $ AGN 5) Bork Nomination AGN 9) SDI Funding FOR Gov. Kay A. Orr (R) 2) Override Hwy Veto FOR 6) Ban Plastic Guns AGN 10) Ban Chem Weaps FOR Elected 1986, term expires Jan. 1991; b. Jan. 2., 1939, Burlington 3) Kill Plnt Clsng Notice AGN 7) Deny Abortions FOR 11) Aid To Contras FOR 4) Min Wage Increase AGN 8) Japanese Reparations FOR 12) Reagan Defense $ AGN IA; home, Lincoln; U. of IA; Protestant; married (William). Career: Executive Asst. to NE Gov. Charles Thone, 1979-81; NE Election Results Treasurer, 1981-86; Chwmn., Repub. Natl. Platform Cmtee 1984 general J. James Exon (D) 332,217 (52%) ($886,760) 1988. Nancy Hoch (R) 307,147 (48%) ($583,632) Office: State Capitol Bldg., Rm. 2316, Lincoln 68509, 402-471- 1984 primary J. James Exon (D) unopposed (68%) ($234,862) 2244. 1978 primary J. James Exon (D) 334,096 Don Shasteen (R) 159,706 (32%) ($218,148) Election Results 1986 gen. Kay A. Orr (R) 298,325 (53%) Helen Boosalis (D) 265,156 (47%) Sen. Robert Kerrey (D) 1986 prim. Kay A. Orr (R) 75,914 (39%) Elected 1988, seat up 1994; b. Aug. 27, 1943, Lincoln; home, Kermit Brashear (R) 60,308 (31%) Omaha; U of NE, M.S. 1966; Congregationalist; divorced. Nancy Hoch (R) 42,649 (22%) 1982 gen. Robert Kerrey (D) 277,436 (51%) Career: US Navy, 1966-69; Restauranteur; Gov., NE, 1983-87. Charles Thone (R) 270,203 (49%) Offices: 302 HSOB 20510, 202-224-6551. Also 7602 Pacific St. Omaha 68114, 402-391-3411; and 100 Centennial Mall N., Rm. 294, Fed. Bldg, Lincoln 68508, 402-437-5246. SENATORS Committees: Agriculture, Nutrition and Forestry (10th of 10 D). Subcommittees: Agricultural Production and Stabilization of Sen. J. James Exon (D) Prices; Nutrition and Investigations; Agricultural Research and Elected 1978, seat up 1990; b. Aug. 9, 1921, Geddes, SD; home, General Legislation. Appropriations (16th of 16 D). Subcommit- Lincoln; U. of Omaha; Episcopalian; married (Patricia). tees: Agriculture, Rural Development and Related Agencies; Dis- trict of Columbia; VA, HUD and Independent Agencies; Treasury, Career: Army, WWII; Branch Mgr., Universal Finance Co., Postal Service, and General Government. 1946-54; Pres., Exon's Inc., office equip. business, 1954-70; Gov. of NE, 1970-78. Offices: 330 HSOB 20510, 202-224-4224. Also 8305 New Fed. Group Ratings and Key Votes: Newly Elected Bldg., 215 N. 17th St., Omaha 68102, 402-221-4665; 287 Fed. Election Results Bldg., 100 Centennial Mall N., Lincoln 68508, 402-471-5591; and 275 Fed. Bldg., North Platte 69101, 308-534-2006. 1988 general Robert Kerrey (D) 378,717 (57%) ($3,461,148) David Karnes (R) 278,250 (42%) ($3,411,361) Committees: Armed Services (2d of 11 D). Subcommittees: Man- 1988 primary Robert Kerrey (D) 156,498 (91%) power and Personnel; Strategic Forces and Nuclear Deterrence Ken L. Michaelis (D) 14,248 (8%) (Chairman); Projection Forces and Regional Defense. Budget (5th 1982 general Edward Zorinsky (D) 363,350 (67%) ($523,141) of 13 D). Commerce, Science, and Transportation (4th of 11 D). Jim Keck (R) 155,760 (29%) ($489,186) Subcommittees: Aviation; Communications; Surface Transporta- tion (Chairman). Group Ratings FIRST DISTRICT ADA ACLU COPE CFA LCV ACU NTLC NSI COC CEI The plains sweep west from the bluffs of the Missouri River, along the always wide and 1988 35 33 46 75 10 48 31 90 50 22 shallow Platte River and a dozen less daunting and dustier tributaries. Eastern Nebraska for just 1987 65 - 43 58 - 38 50 37 - - a century, has been an area of well-ordered farmlands and square-gridded small towns, with land that is just irregular enough in its contours and weather that is just unreliable enough in its heat National Journal Ratings and rainfall to make it difficult though still possible to make a decent living here. The 1st 1988 LIB - 1988 CONS 1987 LIB - 1987 CONS Congressional District of Nebraska is a band of 26 counties covering most of eastern Nebraska, Economic 37% - 61% 39% - 60% except for a few counties around and including Omaha. The largest city, Lincoln, state capital Social 38% - 61% 45% - 52% and home of the University of Nebraska Cornhuskers, is the only fast-growing part of the district Foreign 52% 45% 46% - 49% and now casts nearly 40% of its votes. The political inclination of the region is Republican, but 716 NEBRASKA NEBRASKA 717 Lincoln has become almost Democratic, voting heavily against Governor Kay Orr in 1986 and nearly favoring Michael Dukakis over George Bush in 1988. National Journal Ratings The 1st District's congressman, Douglas Bereuter, is a Republican with experience in and 1988 LIB - 1988 CONS 1987 LIB - 1987 CONS Economic 29% 70% 28% - 71% positive feelings about government; he was a city planner and a top aide to Governor Norbert Social 33% — 66% 25% - 73% Tiemann, who was beaten by Jim Exon in 1970 after raising taxes. He spends much time trade issues. According to National Journal, he "understands the connection between agricul- on Foreign 38% - 61% 41% - 58% tural policy and international trade," and he boosted in the 1988 trade bill provisions to open Key Votes foreign markets to American farm products. His style on farm and other issues tends to be 1) Homeless $ FOR 5) Ban Drug Test FOR 9) SDI Research FOR bipartisan: with Florida Democrat Richard Lehman he wrote the Farmer Mac provision in the 2) Gephardt Amdt AGN 6) Drug Death Pen FOR 10) Ban Chem Weaps AGN 1987 farm credit bill, and with California Democrat Mel Levine he became head of the House 3) Deficit Reduc AGN 7) Handgun Sales FOR 11) Aid to Contras FOR Export Task Force in 1988. He tends to other farming matters-grain quality, the diesel tax, 4) Kill Plnt Clsng Notice FOR 8) Ban D.C. Abort $ FOR 12) Nuclear Testing AGN groundwater recharge-as well. He joined Intelligence in 1989. Bereuter has been reelected regularly by handsome margins and could indefinitely hold this Election Results district which was fiercely contested from 1964 to 1976 and probably will be again if he doesn't 1988 general Douglas K. (Doug) Bereuter (R) 146,231 (67%) ($221,530) run. He is thinking about running for Jim Exon's seat in 1990, and if he does, that should be a Corky Jones (D) 72,167 (33%) ($96,278) issues. tough race between two politicians both classed as moderates but with contrasting approaches to 1988 primary Doug K. (Doug) Bereuter (R), unopposed 1986 general Douglas K. (Doug) Bereuter (R) 121,772 (64%) ($227,910) Steve Burns (D) 67,137 (36%) ($92,746) The People: Est. Pop. 1986: 530,300, up 1.4% 1980-86; Pop. 1980: 523,079, up 6.6% 1970-80 Households (1980): 71% family, 36% with children, 63% married couples; 31.1% housing units rented; median monthly rent: $167; median house value: $38,300. Voting age pop. (1980): 383,987; 1% Spanish SECOND DISTRICT origin, 1% Black, 1% American Indian. Omaha is a city with a 19th century economic base that has grown gracefully into the late 20th 1988 Presidential Vote: Bush (R) century, the site selected by Abraham Lincoln as the eastern terminus of the transcontinental 123,674 (56%) Dukakis (D) railroad, the home of the stockyards and livestock exchange that made it the nation's third 96,134 (43%) largest livestock town. Over the years Omaha filled up with cattle hands from the West and immigrants from Europe (especially Germans and Czechs); it developed fine civic institutions Rep. Douglas K. (Doug) Bereuter (R) from the Joslyn Art Museum to the Ak-Sar-Ben (spell it backwards) Exhibition to its Elected 1978; b. Oct. 6, 1939, York; home, Utica; U of NE, B.A. refurbished old theaters; it developed a competitive politics, with Democrats strong on the south 1961, Harvard U., M.C.P. 1966, M.P.A. 1973; Lutheran: married side around the stockyards and Republicans in the higher-income neighborhoods west of 72d (Louise). Street. Already a major city by the 1880s, Omaha is still a small enough city-famous on Wall Career: Army, 1963-65; Urban Planner, U.S. Dept. of HUD., Street as the place where Warren Buffett lives and works-to be readily comprehensible; you 1965-66; Div. Dir., NE Econ. Devel. Dept., 1967-68; Dir., NE don't feel distant, physically or psychologically, from neighborhoods on the other side of town, Office of Planning, 1969-71; NE Senate, 1974-78. and you usually know people from a broader range of backgrounds than you would in a large Offices: 2446 RHOB 20515, 202-225-4806. Also 1045 K St., homogeneous neighborhood within a big metropolitan area. Lincoln 68508, 402-471-5400. Omaha, which together with a few counties 80 miles up and down the Missouri River forms Nebraska's 2d Congressional District, was the site of one of America's most strenuously Committees: Banking, Finance and Urban Affairs (7th of 20 R). contested House races in 1988-and one which in a mostly apathetic year inspired some genuine Subcommittees: Financial Institutions Supervision, Regulation and Insurance; Housing and Community Development; International enthusiasm and a large turnout. Congressman Hal Daub was running for the Senate seat Development, Finance, Trade and Monetary Policy; Policy Re- traditionally allotted to Omaha, though he had to run in the primary against appointed search and Insurance (Ranking Member). Foreign Affairs (8th of incumbent David Karnes and, if he had won that, face popular former Governor Bob Kerrey in 18 R). Subcommittees: Human Rights and International Organiza- the general. The favorite to replace Daub was Democrat Cece Zorinsky, widow of former tions (Ranking Member); International Economic Policy and Omaha Mayor and Senator Edward Zorinsky, who died in March 1987; another strong Trade. Select Committee on Hunger (6th of 10 R). Permanent Select Committee on Intelligence (5th of candidate was Republican Jerry Schenken, a doctor active in AMA affairs. But the winner, by a 7 R). Subcommittee: Oversight and Evaluation. narrow margin in both primary and general, was Democrat Peter Hoagland, a former state Helen senator and lawyer from an old-line Omaha Republican family. Hoagland challenged Zorinsky Group Ratings to debate seven months before the primary; she, unsteady on the facts of national policy, refused, ADA ACLU COPE CFA LCV ACU NTLC NSI CEI and he kept renewing his challenge and running ads stressing how tough the times were. COC 1988 20 39 21 55 44 71 90 93 47 Hoagland edged her 51%-44%. 76 1987 20 — 18 36 — 57 — 80 51 Schenken, meanwhile, beat a state senator 38%-30% in his primary and, fortified by - contributions from doctors across the country, was spending freely. He attacked Hoagland for 718 NEBRASKA NEBRASKA 719 42%, showing him next to Michael Dukakis. But Dukakis ended up losing the 2d District ran an ad backing tax increases in the legislature and also for votes on crime and drugs, and reform not an insurmountable problem for a ticketmate. Hoagland hit Schenken on his by 58% THIRD DISTRICT vote in both and the built an organization that fielded 1,200 volunteers in Omaha, bringing period for handguns, plans, backed plant closing laws, a higher minimum wage and a waiting medicare "The Middle West merges with the West" in central Nebraska, where "fields give way to the great cattle ranches of the sand hill area, life is more leisurely and manners more relaxed. end of the south and west sides. The two campaigns together spent about $2 million out his Something of the old West still survives," wrote the WPA Guide 50 years ago, "a cowboy riding by a 51%-49% race, margin. the fourth highest of any district race in the country. Ultimately, Hoagland by won the hard against the sky, a herd of white faces coming down from the hills to water, bawling calves at branding time. Here neighbors think nothing of strolling a mile or two of prairie to pay an In the House, Hoagland got the seat on the Banking Committee he sought, and will evening call, and one can travel for hours without finding a sign of human habitation. On the in 1990. for two years, but given the narrow margin, this could be a seriously contested advantages seat of incumbency concentrating on the savings and loan problem, among others. He will have the be high plateaus of the Panhandle, where the wind cuts along the broad valley of the Platte, rocks and buttes rise. Occasionally a coyote may be seen crossing a 'blowout' hollowed by the wind among the dunes." This is now Nebraska's 3d Congressional District, with one-third of the state's people spread over three-quarters of its acreage; except for the towns along the interstate, The Households People: Est. Pop. 1986: 551,400, up 5.5% 1980-86; Pop. 1980: 522,919, 6.2% the 3d has been losing population for decades; in 1988, it cast 214,000 votes, down from 253,000 median (1980): 72% family, 42% with children, 60% married couples; 35.7% housing up units 1970-80. in 1940. 2% Spanish monthly rent: $190; median house value: $40,500. Voting age pop. (1980): 364,998; 7% rented; Black, Politically, the 3d District merges Midwest and West as well. It has the Farm-Belt's demand origin, 1% Asian origin. for farm subsidy and aid programs and the West's angry opposition to federal interference on all other fronts. Presidentially, it is as heavily Republican as the Rockies: 74% and 81% for Ronald 1988 Presidential Vote: Bush (R) Reagan, 67% for George Bush. In congressional elections, it is ultra-safe territory for Virginia Dukakis (D) 130,193 (58%) 94,071 Smith, a chipper and enthusiastic Republican first elected, narrowly, in Democratic 1974. She is (42%) now the dean of Republican women in the House. For 20 years, Smith chaired the American Farm Bureau Women, once one of the free enterprise pillars of Republican strength in the Farm Rep. Peter Hoagland (D) Belt; she was an active Republican as well. Now she has a seat on the Appropriations Committee Elected 1988; b. Nov. 17, 1941, Omaha; home, Omaha; Stanford and is a vote for frugality, sometimes even on defense issues. But on farm programs, she is a bara). U.; A.B. 1963, Yale U., J.D. 1968; Espiscopalian; married (Bar- quick and persistent voice against cuts and looks out closely, as the ranking Republican on Jamie Whitten's Agriculture Subcommittee, for the interests of wheat growers. She fights congres- Career: Practicing atty, 1968-88; NE House of Reps., 1979-87. sional pay raises and boosts rural health care programs, backs senior citizen aid and subsidies for local bus lines. She tends carefully to even the minutest water projects in often arid western Offices: 1415 LHOB, 20515, 202-225-4155. Also 8424 Zorinsky Nebraska; her late-in-the-primary support for Senator David Karnes's water policy (though Fed. Bld., 215 N. 17th St., Omaha 68102, 402-221-4216. technically she kept her pledge to be neutral) helped Karnes beat Smith's Omaha colleague Hal Committees: Banking, Finance and Urban Affairs (30th of 31 D). Daub 2 to 1 in the west and win the 1988 primary. Subcommittees: Domestic Monetary Policy; General Oversight In June 1989, Smith announced she would retire, saying, "there is a time in life for and Investigations; Housing and Community Development; Finan- everything." With the overwhelming Republican voter registration in this district, it seems likely cial Institutions Supervision, Regulation and Insurance; Interna- that her successor will retain her party label. tional Development, Finance, Trade and Monetary Policy. Small Special Problems. Business (24th of 27 D). Subcommittee: Exports, Tax Policy and Group Ratings and Key Votes: Newly Elected The People: Est. Pop. 1986: 516,000, dn. 1.5% 1980-86; Pop. 1980: 523,827, up 4.2% 1970-80. Election Results Households (1980): 73% family, 38% with children, 66% married couples; 28.1% housing units rented; 1988 general Peter Hoagland (D) origin. median monthly rent: $142; median house value: $34,700. Voting age pop. (1980): 373,670; 2% Spanish Jerry Schenken (R) 112,174 (51%) ($858,762) 1988 primary Peter Hoagland (D) 109,193 (49%) ($1,158,294) Cece Zorinsky (D) 33,394 (51%) David A. Wilken (D) 28,635 (44%) 1986 general Harold J. (Hal) Daub (R) 2,922 (4%) Walter M. Calinger (D) 99,569 (59%) ($509,019) 70,372 (41%) ($57,627) 1988 Presidential Vote: Bush (R) 144,089 (67%) Dukakis (D) 69,030 (32%) 120 NEDNASKA Rep. Virginia Smith (R) Elected 1974; b. June 30, 1911, Randolph, IA; home, Chappell; U. of NE, B.A. 1936; United Methodist; married (Haven). Career: Owner, wheat ranch, 1931-74; Mbr., NE Bd. of Ed. for St. Colleges, 1950-60; Natl. Chwmn., Amer. Farm Bureau Women, 1955-74; Mbr., Amer. Farm Bur. Fed., 1955-74; Chwmn and Pres., Task Force on Rural Devel., 1971-72. "As it was in the Offices: 2202 RHOB 20515, 202-225-6435. Also 312 W. 3d SL, century ago, "Nev P.O. Box 2146, Grand Island 68802, 308-381-5555; and 1502 2d still on shafts and ( Ave., Scotts Bluff 69361, 307-622-3333. of personal morals Mackay's time. Re Committees: Appropriations (8th of 22 R). Subcommittees: Ry- ral Development, Agriculture and Related Agencies (Ranking Tonopah of the pa Member); Energy and Water Development. Sunday an open h cowboys still roll t rodeos." There we money in a mining Group Ratings divorces were only ADA ACLU COPE CFA LCV ACU NTLC NSI COC CEI Today's Nevada 1988 25 27 12 64 19 80 66 80 93 54 Vegas (where Clai 1987 4 - 10 29 - 78 - | 93 59 around Reno; bene National Journal Ratings arisen a prospering of the Cow Counti 1988 LIB - 1988 CONS 1987 LIB - 1987 CONS Economic emptier. But almo 29% - 70% 24% - 74% Social state largely built 1 29% - 70% 0% } 90% Foreign 30% - 67% still a booming tou: 28% - 70% gaudily kick up its Key Votes who built the Flam 1) Homeless $ FOR 5) Ban Drug Test FOR 9) SDI Research FOR his Beverly Hills he 2) Gephardt Amdt AGN 6) Drug Death Pen FOR 10) Ban Chem Weaps AGN Howard Hughes be 3) Deficit Reduc AGN 7) Handgun Sales FOR 11) Aid to Contras FOR companies, and Ne 4) Kill Plnt Clsng Notice FOR 8) Ban D.C. Abort $ FOR 12) Nuclear Testing AGN for the western (e Election Results nation's nuclear we 1988 general Virginia Smith (R) remains dependent 107,302 (79%) ($229,109) John D. Racek (D) 45,183 (21%) ($13,451) to recognize, 1988 primary Virginia Smith (R), unopposed Politically, Neva 1986 general Virginia Smith (R) 136,985 (70%) ($253,292) admitted to the U Scott E. Sidwell (D) 59,182 (30%) ($74,227) reelection. The Co but up through the h Beth miller Chairman of Foreig absurdly large am repressive McCarr 4 named for him) ai owners were called ing. For years, Nev to keep nuclear wa In the last half- Democratic to Rep least family-orient nation), while 64% occupied by marri ACCOMPLISHMENTS OF GOVERNOR KAY ORR 1987-1989 ECONOMIC DEVELOPMENT Nebraska unemployment ended 1989 at 2.7%, compared to 5.5% when Governor Orr took office. That was the lowest December unemployment rate in 16 years. Nebraska had the 4th lowest unemployment rate in the country last year. Manufacturing employment in Nebraska grew at a rate of 4.3% last year, fifth highest in the nation. Rural manufacturing employment grew at a higher percentage than metropolitan areas. Nonfarm employment grew at 3.1%, 8th highest in the country. Governor Orr led the effort to revitalize Nebraska's economy through performance based incentives, sending a message out nationally that Nebraska is "Open For Business." This "Jobs Creation" legislation has been responsible for 327 new business projects; $2.4 billion in new investments for Nebraska; and the creation of more than 23,000 new job opportunities in 69 Nebraska communities. Since Governor Orr took office, Nebraskans receiving welfare or food stamp assistance has been reduced by more than 2,000 families. Tourism recorded a third consecutive record year, with $1.6 billion in spending anticipated for 1989. Retail sales have increased by more than 10% in most Nebraska communities in the past year, helping to reduce business failures in Nebraska by nearly 40%. Governor Orr is committed to revitalizing rural Nebraska communities and has been personally involved in town hall meetings in small communities to discuss new economic development plans. EDUCATION -Governor Orr has restored over $10-million in State Aid to Education for public schools, which had been cut by the previous administration. In addition, state aid funding for special education in Nebraska will increase by $22-million during the Governor's first term. The Governor signed a two-year, $40-million increase to improve salaries for Nebraska school teachers. -Governor Orr has supported significant increases to improve higher education in Nebraska. The Governor has made the following funding commitments through her first term: --52% increase to the University of Nebraska system; --53% increase to Nebraska's State Collges; --45% increase to Nebraska's Technical Community Colleges. -Governor Orr has supported $750,000 for increased scholarships to students at public and private colleges in Nebraska. --Nebraska is in the middle of a 5-year, $60 million dollar research initiative program for the University system. Research is underway on all three University campuses, helping to develop new products that will be produced and marketed in Nebraska. TAXES The Governor helped restructure Nebraska's income tax system, breaking it away from being dependent on federal income tax laws. In the past two years, the Governor has proposed and signed legislation to reduce income taxes in Nebraska by $34 million, including a first ever credit for child and dependent care. -Governor Orr led the effort to return more than $100-million in direct property tax relief to Nebraskans in 1989, and supports continued funding for property tax relief in 1990. The Governor provided leadership following a Nebraska Supreme Court property tax decision, leading to passage of three bills to protect Nebraska schools, cities and counties from losing more than $30 million in revenue in 1989. SUMMARY Governor Orr has provided leadership that has produced positive results for Nebraskans. She believes in creating opportunities for people to provide a better quality of life for their families. She has kept her campaign commitments to promote economic development, create jobs, improve education, and establih a new, positive attitude among Nebraskans. She is now leading the state effort to fight drug abuse through enforcement, education and treatment. THE WHITE HOUSE Office of the Press Secretary (Orlando, Florida) For Immediate Release January 8, 1990 REMARKS BY THE PRESIDENT TO THE AMERICAN FARM BUREAU Orlando Convention Center Orlando, Florida 10:47 A.M. EST THE PRESIDENT: Thank you all very much. Thank you, Dean. (Applause.) Well, my thanks to my friend, Dean Kleckner, Farm Bureau President, for that ware introduction. We're grateful for his leadership on that National Economic Commission, and the tremendous support of you, the members of the Farm Bureau. My thanks, too, to Bob Delano out here, former Farm Bureau President, whose leadership and counsel have been so helpful to me. I'm happy to have my distinguished -- our distinguished Secretary of Agriculture Clayton Yeutter here at my side, doing a superb job for us. (Applause.) And I know you'll hear tomorrow from Ambassador Carla Hills. You talk about two people who understand the need to open up foreign markets to U.S. agricultural products -- these two are tough and they are the tops -- and we're grateful to both of them. (Applause.) My friend, Bob Martines, Governor Martines, it's always a pleasure to see you and visit your beautiful state. And, of course, I'm very proud of the next two -- great to see Senator Connie Mack here -- a new Senator making a national impression, I'll tell you. And next to him, or right near him - second from the end -- my close friend, and a long-time supporter, Bill McCollum. Two outstanding voices for Florida in our Nation's Capital. I wish we had a lot more like them, I'll tell you. (Applause.) I just returned from a little fishing and hunting over the holidays in Texas and Alabama, and I heard a story about the time that Mark Twain spent three weeks fishing in Maine after the fishing season had closed. On the way home, aboard the train, he told the man seated next to him about all the fish he'd caught. Finally, Mark Twain asked, "By the way, who are you, sir?" "I's the State Game Warden," replied the man. "Who are you?" And after a long pause, Twain said, "Well, to be perfectly truthful, I'm the biggest damn liar in the whole United States.' (Laughter.) I won't bore you with my fishing stories because I could reminisce with you all day long on this subject. It's a pleasure to be here because, for 71 years now, the American Farm Bureau has helped American farmers -- over three million member families -- to become the best in the world. And farming is a proud and noble part of our history. In fact, Thomas Jefferson himself wrote that "Agriculture is the most useful of the occupations of man." Today, nearly two centuries later, I'm here to give my first major address of the new decade. And I'm proud to begin this decade by talking to you about the future of farming in this country. But as we look forward, it's also important to reflect upon the past and what farmers have gone through, both good and bad. You -- America's farmers - deserve the credit for the rebound in U.S. farming. And I salute you again. I salute the board of directors up here -- all farmers - who are leading this MORE - 2 - outstanding organisation. You've been through the worst droughts and national disasters of the 1980s, and you've survived tough economic times. But you've worked with your minds and your hands to beat adversity with a kind of can-do commitment that's been the hallmark of American farming for generations. Right here in Florida we're seeing some of that can-do attitude as you face -- Florida farmers -- as you face the terrible loss of the citrus and winter vegetable crop. On the way down on Air Force One, Bob Martinez gave me the details of Florida's losses. But let me tell you -- I'm sure you've heard this from Clayton - you will not be facing this alone. Clayton and I have talked, and I've asked the Secretary to personally oversee our efforts to provide assistance and I know you can count on the USDA to be in there fighting with you. (Applause.) It was a little over four years ago -- seens like just yesterday -- but a little over four years ago that the 1985 Farm Bill became law. Admittedly, the cost has been high, but it has worked. Since then, the news has been good. Surpluses have declined dramatically, and most of our good land has been brought back into production. Net farm income reached a record level last year, and the share of income that came from market sales continued to grow. The farm credit situation has greatly improved, bringing more financial stability to rural America. As we face the future, the outlook is even better. Through sound fiscal policies and wise management of our resources, common-sense attitudes -- and, God willing, good weather -- we can succeed. Together, we will keep rural America strong and American agriculture thriving in the 1990s. (Applause.) But to do that -- and Dean Kleckner alluded to this in his introductory remarks -- to do that, our first priority must be to keep the American economy growing. That means fiscal and monetary policies that make sense. Today, one of the best things we can do for farmers is to keep the interest rates low, and that is exactly what we intend to do. (Applause.) This year, we will work with Congress on the 1990 Farm Bill. Getting a good farm bill through Congress is like milking a bull. (Laughter.) But I can tell you that to be competitive, we must have market-oriented farm policies that allow producers more flexibility to decide what crops to grow -- (applause) -- and that because American farmers then can do what Americans do best: compete. At the same time, we've got to maintain a safety net to protect farmers from conditions beyond their control. But market-oriented farm policies are only a part of the agricultural picture. It is absolutely essential that we expand markets and enhance productivity. We've got to assure the public that America's food is safest in the world, and we've got to protect our precious environment. America's farmers -- I know this -- America's farmers understand the importance of a clean environment. Many of you here today CORE from farms that have been handed down from parents and grandparents. You know that to protect the land is to protect not just your livelihood, but your heritage. We must recognise that productive agriculture and a sound environment can be compatible -- especially in terms of water quality. The administration has initiated a concentrated five-year effort to work with the nation's farmers to protect our groundwater from contamination by fertilizers and pesticides. We'll spend close to a third of a billion dollars on research and support for farmers to stop contamination of our land and water. We must keep your good land in business -- without unreasonable burdens -- but we must also keep it good land. I am counting on your leadership as we work to expand farm productivity while safeguarding our precious environment. MORE - 3 - We must also make sure that all Americans are confident to develop legislation to protect the food supply without in the safety of our food supply. My administration is working hard overwhelming the agricultural industry. But in the coming decade, the American farmer must have a level playing field in the international trade arena, too. And the way to fight trade barriers is through negotiation, not reciprocal protectionism. I know that many Farm Bureau leaders serve on the Agricultural Trade Policy Advisory Committee, and how important this issue is to you. Our administration has just made a bold proposal in the Uruguay round that would phase out export subsidies in five years and other trade-distorting practices in 10 years. But any agreement we sign -- and I can guarantee you this -- any agreement that we sign will be an agreement that is also good for American agriculture. You see, our goal is simple: open markets and free trade. (Applause.) And it's beginning to work. International markets are improving. The value of U.S. agricultural exports has increased for the third year in a row. And sales to developing nations -- the dynamic markets of the future -- were up 13 percent last year. We also support expanding our ties with Eastern Europe and the Soviet Union to open even more markets. Earlier this winter, Secretary Clayton Yeutter led a presidential delegation to Poland to determine how American know-how can help Poland shift from that controlled economy to a market economy. It was a wonderful mission, and we're forging new partnerships between our agricultural industries and Eastern Europe's emerging economies. But in today's global economy, America must also become more competitive through increased production, new uses for our products, and expanded markets at home. And so this administration supports greater research into biotechnology for improved productivity and we're encouraging alternative uses of farm products like ethanol and other new fuels and fuel additives. Just a few months ago, we proposed the expansion of the producer tax credit for alternative fuels to include ETBE. This will mean more markets for growers and cleaner air for all Americans. But for us to reap the full benefits of a competitive economy we must cut the capital gains tax rate. (Applause.) With our capital gains tax proposal, we can help keep American agriculture dynamic and prosperous. And with continued economic growth, we can keep rural America going strong. Passage of our capital gains proposal, which would apply to the sale of farmland, will be one of my top priorities in this legislative year. Your support has been instrumental in the fight for the capital gains cut. And the fight isn't over yet. And I am sick and tired of the demagogues who call this a tax cut for the rich. It means jobs, it means savings, and it is good for all Americans. (Applause.) And so the Farm Bill, our international trade negotiations, and a capital gains tax cut will be high on my agenda for this great nation. Because what's good for agriculture is good for America. (Applause.) Let me talk just a little about some of the challenge facing all America. Like people everywhere in this great country, you work hard, you sacrifice to make good lives for yourselves and your children. Every one of us dreams of excellence in education, economic opportunity for all citizens, and a clean and healthy environment and safe, drug-free streets, schools, and workplaces. Together we are working to build a better America. But much remains to be done, and you're in the forefront. Rural America cares about education. You know, some say improving our schools is something for federal money and Washington bureaucrats to handle. And I know you don't believe that. Whether it's a MORE - 4 - classroom on a rolling prairie in Nebraska or a busy New York street, improving education is a national challenge. Last September, I met with the nation's governors at the education summit in Virginia to begin promoting educational restructuring in every state and determining national goals to attain excellence. The administration has sent the Educational Excellence Act to the Congress, and we want, and America needs, action on it soon. (Applause.) Rural America is also battling the ravages of violence and drugs. Every citizen has the right to a safe home, the right to freedom from fear. Early in my administration, we sent the comprehensive Violent Crime Control Act to the Congress. We proposed measures to improve enforcement and prosecution, and strenghen current laws to put the drug dealers behind bars and keep them there. This critical crime legislation has been sitting on Capitol Hill for months. Brave citizens everywhere are standing up to crime. And it's a time for Congress to act quickly and responsibly because the war on drugs and crime will not wait. (Applause.) And I might say parenthetically, thank God we've got Bill McCollum in a key role in the House and Connie Mack -- Senator. I again want to mention that the support that we are getting for them and others like them for this approach I've outlined. Let me just add a little more on our relationship with Capitol Hill. When I took office -- Inaugural Address -- I put my hand out to the Congress, to the Democractic majority, and reminded us all that the American people did not send us to Washington to bicker. As I've said, we sent proposals to Congress on clean air, combating crime, capital gains. Responsible proposals. Carefully thought-out. Based on principles. Finally, rural America -- let me just finish. Now a year has passed. A new year has become. And it's time -- it is past time -- for Congress to tend to some of the unfinished business. Let me say to Congress as it comes back in a couple of weeks now: The hand of cooperation is once again extended. And I would only add -- America wants it done right. America wants it done responsibly. And America wants it done now. (Applause.) We are always willing to listen to ideas and alternatives. But we are not willing to compromise on fundamental principles. Finally, rural America does believe in liberty and democracy. Freedom-loving people everywhere are following the news reports from behind what used to be called the Iron Curtain. In fact, I read that the first thing to sell out in West Berlin on the day the Wall came down wasn't TVs or denim jeans. It was fresh fruit. In Romania, citizens knew freedom had arrived because, for the first time in many years, they saw food on the grocery store shelves. We reap what we sow, says the Bible, and what a bountiful harvest we are witnessing. It is a harvest of joy and opportunity that we will continue to support and encourage every step of the way. And let me add -- this harvest is not just happening in Eastern Europe. Let's help the countries to our south so that this hemisphere will be the first totally democratic hemisphere in the entire world. (Applause.) I know I don't have to tell you this, but let me just tell you from the bottom of a grateful heart that I am mighty proud of our courageous fighting men who have helped Panama. And the joy shown by the people of Panama says it all right there in the streets of Panama City. (Applause.) And so as I conclude my comments to the Farm Bureau, I can tell you I am optimistic about the coming decade, for I believe in the wisdom of our policies, I believe in the providence of the Almighty; and most importantly, I believe in the tough resiliency and the moral strength of the American people. MORE 5 - Throughout our history, farmers -- many in this room -- have weathered disaster. And each time, like steel forged in a white-hot furnace, you are stronger with each testing by fire. In the "Dirty "30s" swirling clouds of dust ruined hundreds of farmsteads on the Great Plains. Many of the Dust Bowl farmers stayed on the land, and today, their descendants have invented conservation techniques to catch and preserve the winter snows and the spring rains to carry their crops through the hot plains summer. A triumph of human courage and ingenuity. In the 1970s, an unheard-of disease, the Southern Corn Leaf Blight, swept through the fields of the Midwest. In a few days, the tall, green, tasseled corn was devastated as if someone had taken a blowtorch to it. Over that winter, scientists and farmers developed resistant corn varieties in time for the next spring planting. A national food disaster was stopped dead in its tracks. A triumph of faith, science and inventiveness. And today, at the daybreak of the new decade, I want rural America to share in the promise and prosperity of our great nation. And in the months and years to come, as we approach the horizon of the new century, may we all share in the opportunity and optimism of a world at peace. Thank you and God bless the United States of America. Thank you very, very much. (Applause.) END 11:11 A.M. EST Nebraska's Unicameral Fifty Years Without a Conference Committee Nebraska embarked on a legislative experiment in 1937 that has become a tradition there after half a century, but so far no other state has copied it. By Pat Wunnicke T imes were tough in Nebraska in 1934, drought and Depression taking their toll, the Legislature doing nothing effective about either. An appealing aspect of one proposal for the November ballot was the promise that a new one-house legisla- ture would be cheaper to operate than two, and might be more effective. Photos: Nebraska State Historical Society The idea of a unicameral legislature, like the idea of non-partisanship and citizen initiative, grew out of the Progressive movement at the turn of the century, and had been kicking around in Nebraska as well as other states in the Midwest and northern plains for a good many years. In fact, the proposal had been defeated by only one vote in the Nebraska constitu- tional convention of 1920, after being repeatedly quashed early in the cen- tury by legislators perhaps understand- ably reluctant to sacrifice their own seats. But now the proposal had the back- U.S. Senator George Norris spent the summer of 1934 traveling Nebraska, expounding on the evils of the bicameral system and extolling the virtues of unicameralism. ing of beloved George Norris, long- time U.S. senator and Nebraska hero. ing the virtues of unicameralism and legislature prevailed throughout the First elected to the U.S. House of pleading with the voters to support it. United States. (Among the territories, Representatives in 1902, Norris spent A one-house legislative body was Guam and the Virgin Islands use the 40 illustrious years in the Congress not unheard of. It had been adopted, unicameral system.) before he died at 83. The summer and in various guises, by almost all cities But years of legislative experience fall of 1934, however, he spent travel- and counties, and in modified form had convinced Norris that the confer- ing the dusty back roads of Nebraska was (and still is) a feature of Canadian ence committee, inevitable with two -"wore out two sets of tires and two provincial governments. During bodies, was an unmitigated evil, dis- windshields," recalled his widow three Revolutionary times, Georgia, Penn- torting or even thwarting legislation decades later-speaking at every op- sylvania and Vermont experimented that had been approved by a majority. portunity on the evils of the bicameral with a type of unicameralism, but In addition, he disapprovingly traced system ("illogical and clumsy"), extoll- abandoned it early, Georgia and Penn- the two-house method of organization sylvania before the turn of the 19th back to the English class system that Pat Wunnicke is assistant editor of State Legis- century, and Vermont in 1836. For a produced the House of Commons and latures. century thereafter, the two-house state the House of Lords. He said, " in California Assembly, called unicamer- drawback often is the one which frus- alism "the wave of the future," asking trated the original unicameral propo- rhetorically, "Does any corporation nents in Nebraska: The legislature itself have two boards of directors?" He is the prescribed starting place for con- called the two-house system "a costly stitutional amendments; however, and inefficient anachronism" and said, legislators are disinclined to approve "I do not believe that increased salar- proposals which would alter substan- ies, new facilities and professional staff tially the body in which they serve." will be more than temporary pallia- Norris and his cohorts in 1934 used tives for the ills that it is hoped they that powerful new tool, the initiative, will cure. These reforms in themselves which had been adopted by Nebraska only make a more efficient horse and 22 years before. He and John P. Sen- buggy. I take little comfort from the ning, professor of political science at fact that legislatures can be the fastest the University of Nebraska, drafted the horse and buggy in the jet age." language of the initiative that was to Unruh's disciples have kept the dis- amend the state constitution that fall. cussion going in California, but it has It would save time, talk and money, yet to make its way to the ballot box. they said. (It did save money. The cost In recent years, several other states of the first unicameral session in 1937 have looked at the unicameral option was about half that of the last bicam- with more than curiosity: Hawaii and eral in 1935.) Mississippi have considered it in con- The battle might have been easier if stitutional conventions, and petition Norris had not insisted that the mem- efforts were made but failed to gain bers of the new body be nominated enough signatures in Michigan and and elected on a non-partisan ticket. this country we have no such classes Montana. Alaska voters, invited by That feature earned the proposal the and the constitutions of our various the Legislature in 1976 to cast an enthusiastic opposition of both politi- states are built upon the idea that there "advisory vote" on whether an amend- cal parties and most of the state's is but one class. If this be true, there ment to the state constitution should newspapers. Even among ardent sup- is no sense or reason in having the be offered future voters, obliged with porters of the unicameral idea, feelings same thing done twice, especially if it 58,782 yeas and 55,204 nays, but the were, and still are, mixed about the is to be done by two bodies of men following years' sessions ignored the question of allowing partisan represen- elected in the same way and having the advice. tation. Nevertheless, nearly twice the same jurisdiction." Minnesota Speaker David Jennings needed number of voter signatures Norris was ahead of his time. His proposed a unicameral setup in 1985 were collected that summer, and with comments were on firmer ground 30 as a way of dealing with conference- the issue on the ballot, the proposal years later, after the reapportionment committee problems, but the Minne- was handily approved in November of decisions did ensure that both bodies sota Citizens League disagreed. Its 1934 by a vote of 286,086 to 193,152. of a legislature were "elected in the report, "Power to the Process," pub- same way and (have) the same juris- lished in September 1985, found "no S enator Jerome Warner, who has diction." compelling evidence that the unicamer- served in the Nebraska "Unicam" The question of one house or two al structure is superior to the two- for 25 years, as speaker and most and the merits of each had been dis- house model." The report, while recently as chair of the Appropriations cussed at length 150 years before. admitting that the two-house arrange- Committee, says that "non-partisan- Madison wrote worriedly (in The Fed- ment requires additional work and eralist, #38) of the Confederation's extra staff, suggests that it brings the "Congress, a single body of men advantages of different ideas and the sole depositary of all the federal policy approaches to the policymaking powers." Salvaging the Constitutional process, and introduces "a major check Convention in 1787, the Great Com- into the legislative process." promise setting up a two-house legis- However, a report in the University lature put to rest the fears of the of Minnesota's Humphrey Institute delegates from the smaller states that Future of the State Legislature series, their interests would be overlooked by published in March 1986, takes a more a national legislature dominated by positive view of the unicameral option, representatives from the large states. although it stops short of explicitly advocating the change. A Ithough low on the list of Robert Sittig, professor of political national priorities, unicamer- science at the University of Nebraska alism is still being debated. At (Lincoln), and author of The Nebras- an Eagleton Institute of Politics confer- ka Unicameral After Fifty Years, be- ence for state legislators in the 1960s, lieves that only in the 14 states with the the late Jess Unruh, fabled California initiative has the system much of a Norris, stumping for a unicameral legis- politician and sometime speaker of the chance. He points out that "the greatest lature, thought two houses 'illogical.' State Legislatures October 1987 Page 21 ture. It was whether you were north How the Nebraska or south of the Platte [River]." Commenting on the fateful 1934 Unicameral Works election, Warner notes that there were two other proposals on the ballot with Nebraska's thinkers have managed the initiative, one to allow pari-mutuel to prevent the kind of hasty legisla- horse racing and another to repeal Pro- tive action that the two-house ar- hibition. "The advertising was to vote rangement was said to avert, by yes on all three," says Warner, "and bringing the public into the process there are those who think that may at every stage. A nine-member "refer- have been a factor." ence committee" refers all bills either But it may have been simply the to a standing committee or directly to force of George Norris' personality the general file; and the reference that got the thing passed 3-2 in the face committee sets all bills for hearings. of powerful opposition. Bob Sittig Every bill must receive a public hear- thinks so. "It was George Norris. He ing, preceded by at least five days' deserves nearly all the credit for push- published notice of date, time, place ing it over the top, after people had and subject. After the hearing, when been working on it for 20 years." After the standing committee goes into it passed, Norris went back to executive session, media representa- Washington and Professor Senning, tives must be allowed to attend and soon to be officially named consultant report on the proceedings. to the Legislature on the unicameral, Introductions are limited to the first 20 days of the session. A minimum The beloved senator used his influence began drawing redistricting maps. The to persuade thousands of voters. last bicameral legislature in 1935 of seven days must elapse from intro- looked over, and quarreled over, near- duction to final enactment of any ship wasn't all that strange" to ly three dozen different maps before measure. Assuming committee ap- Nebraskans, who had a long history of finally passing one on the last night of proval, three floor votes are necessary support for the idea. A Non-Partisan the session. for passage. The constitution requires League was active in the state at the The amendment called for between that at least one legislative day pass turn of the century, and a number of 30 and 50 members, to be designated between correct engrossment and a offices at the local level were stripped senators; the 1935 session settled on 43; final vote. of party labels. Historically, says there are now 49. And it provided that About a dozen committees deal Warner, as in many other states there "the aggregate salaries of all the mem- with the 600 or 700 bills introduced was "a far stronger geographic division bers shall be $37,500 per annum, or carried over in each annual session: in alignments than partisan division, divided equally among the mem- Each member typically serves on two even when it was a two-house legisla- bers Considering that sessions committees, with a few on three and Appropriations members on no other. Committee membership is structured by four geographic regions, with each region entitled to two seats per committee. The lieu- tenant governor presides. On final reading and passage, all bills are read through in full by the clerk, with senators required to be present and seated. For what it's worth, a look at Nebraska's proportion of enactments to introductions during the 1985 ses- sion compared to a half dozen other part-time legislatures show that Nebraska is on the low end of a range of numbers of introductions (728 compared with numbers commonly above 1,000) and also in the low range of percentage enacted (34 per- cent compared with ranges from 37 to 59 percent). Members' terms are four years, staggered so that about half are elect- ed every other year. Senator Norris and President Franklin Delano Roosevelt at a campaign stop, 1936. Page 22 October 1987 State Legislatures critical of, it is the rather ill-defined areas of authority that result from non- partisanship. Power seems to drift toward the speaker, and though there has been some strengthening of the standing committees, basically it's a fairly unstructured, collegial sort of operation." Collegial wasn't what Nebraska Governor Roy Cochran called it more than 40 years ago. He said, "There is no formal leadership. It's just like a Mexican army, all generals." "The lobbyists like it," said Sittig, "and that makes me a little uneasy." He went on to say that the Unicam, as it has come to be called, gets good media coverage, and since fully a third to a half of the first half of the session is devoted to open committee hearings, any citizen who's interested can par- ticipate. Although there are rural-urban and geographic splits without partisanship, "there's a lot less acrimony and ani- mosity," says Dick Hargesheimer, director of the Nebraska Legislative Research Division. "With only 49 members, they get to know each other pretty well." He contends that Norris and his friend, University although lobbyists have fewer people of Nebraska Professor John P. Senning (above), together to deal with, without formal political drafted the language of the caucuses and with fluid coalitions that unicameral initiative. Later, change frequently, "it's harder for Senning was named official them to get a handle on it." Interest- consultant to the Legislature on ingly, Minnesota had a non-partisan the unicameral. Left, Norris at bicameral legislature up through the home in McCook after 1944. late 1960s, but that is another story. Non-partisanship is only a feature of were biennial, and lasted for only the Nebraska system, not its essence. about 100 days, that wasn't too bad a Says one-time Wyoming treasurer wage with bread at a dime a loaf. Shirley Wittler, a Nebraska native and The voters of Nebraska thought it former president of the Lincoln League was plenty for 23 years. In 1960 they of Women Voters, "I grew up with the finally approved a raise to $2,400 a years, off and on, as a member. "We're [one-house] system, so it didn't strike year per member. Today it is $4,800 a political family," says the younger me as unusual until I started looking plus per diem, for annual sessions that Warner, who adds that, although an at [other states]. For the citizen, it's run 90 days in odd-numbered years, 60 active Republican, he wouldn't change much easier to track legislation, and in the even numbered, unless extended the Nebraska system. He said that the the processes are methodical and by a four-fifths vote of the members. lack of party requirements leaves unhurried. There are open sessions Nebraska is one of the few states members free to oppose or support every morning, and committee hear- whose constitution specifies a salary both legislation and people for leader- ings in the afternoon, with times and amount for legislators. ship positions, and he believes that subjects published in advance." Three-quarters of the members of is an advantage, not a detriment. "Like It has also been suggested that access that first unicameral in 1937 were the any other legislator," he confesses, "I to a single chamber is easier for the same partisans, now under a non- suppose I like the system because I'm unsophisticated lay person, while the partisan banner, who had previously used to it." sophisticated find it impossible to play served in the traditional legislature. the kinds of games between the bod- Jerome Warner's father, Charles J. W ho does lead in a non- ies that is possible in the other 49 Warner, was the first speaker under partisan body? With whom states. the new regime that began Jan. 5, 1937. does a governor, or a lobby- But if Nebraska's legislative system, First elected to the statehouse in 1900, ist, deal? Jerome Warner says it's a now an established tradition there, is the year after he graduated from the "one-on-one" situation. Professor the wave of the future for other states, University of Nebraska, he spent 26 Sittig says, "If there's one thing I'm it's a mighty slow-moving wave. State Legislatures October 1987 Page 23 Ref. PN6081 C27 WH The Harper Book of AMERICAN QUOTATIONS Gorton Carruth and Eugene Ehrlich A Hudson Group Book 1817 Harper & Row, Publishers, New York Cambridge, Philadelphia, San Francisco London, Mexico City, São Paulo, Singapore, Sydney 107. HISTORY JAMES RUSSELL LOWELL, published in the United history of a country as proclamations and provisos States Magazine and Democratic Review, and constitutional amendments. ghts! was October, 1842. STEPHEN VINCENT BENÉT, quoted in Charles A. ries, 1891. feel the unutterable longing, Fenton, Stephen Vincent Benét: The Life and which The hunger of the heart is mine; Times of an American Man of Letters, 1958. with each and grope for hands in darkness, 6 Bismarck, when asked what was the most impor- My ear grows sharp for voice or sign. tant fact in modern history, replied: "The fact that oting an luct of Jas GREENLEAF WHITTIER, "To Lydia Maria North America speaks English." Life, Chil," 1870. GURNEY BENHAM, Benham's Book of is mouth, Quotations, 1948. S heart. 7 Historian, n. A broad-gauge gossip. Richard's 107. HISTORY AMBROSE BIERCE, The Devil's Dictionary, 1906. no sign See also EXPERIENCE; KNOWLEDGE 8 History, n. An account mostly false, of events ng tresses. mostly unimportant, which are brought about by rulers mostly knaves, and soldiers mostly fools. SR., "The honest historian can take part with-or Ibid. the forces he has to study. To him even rain carries nationation of the human race should be merely 9 History is the torch that is meant to illuminate hatever be grouped with other vital statistics. the past to guard us against the repetition of our olor of its Resay ADAMS, The Education of Henry Adams, mistakes of other days. We cannot join in the re- writing of history to make it conform to our com- 5, SR., The fort and convenience. 0. public history of all countries, and all ages, CLAUDE G. BOWERS, in the introduction to F. ing, sort of mask, richly colored. The interior Jay Taylor, The United States and the Spanish e. of the machinery must be foul. Civil War, 1956. GFELLOW, QUINCY ADAMS, in a diary entry written 10 History selects its heroes and its villains, and 9, 1822. few of us resist participation either at the parade or e brain, the loss of tradition we have lost the thread at the guillotine. attain. safely guided us through the vast realms of WILLIAM F. BUCKLEY, JR., The Jeweler's Eye, but this thread was also the chain fettering 1968. NGFELLOW, 9. ascessive generation to a predetermined as- the past. It could be that only now will the 11 The history of every country begins in the heart nemory, like up to us with unexpected freshness and of a man or a woman. things that no one as yet had ears to hear. WILLA CATHER, 0 Pioneers! 1913. d into which Newsan ARENDT, quoted in Carl J. Frederich, 12 The history of the earth! Doth it present any- Names I, Authority, 1958. thing but crimes of the most heinous nature, com- ght. - other stage are the scenes shifted with a mitted from one end of the world to the other? We )NGFELLOW, so like magic as on the great stage of observe avarice, rapine, and murder, equally pre- when once the hour strikes. vailing in all parts. History perpetually tells us of millions of people abandoned to the caprice of the Bellamy, Looking Backward: stical 2000-1887, 1888. maddest princes, and of whole nations devoted to time began, the blind fury of tyrants. If one corner breathes heart of all, always seemed to me that legends and in peace for a few years, it is, in turn subjected, an. and folktales are as much a part of the real torn, and leveled; one would almost believe the PN6081 07/68/20 E63 WH THE HOME BOOK OF AMERICAN QUOTATIONS SELECTED AND ARRANGED BY BRUCE BOHLE " DODD, MEAD & COMPANY NEW YORK 1967 180 GOVERNMENT GOVERNMENT the little that is Good steadily hastening 8 toward immortality, I believe every citizen should support the And the vast all that is call'd Evil I saw government when final action is taken, hastening to merge itself and become whether he approves of the action or not. lost and dead. WILLIAM JENNINGS BRYAN. (New York WALT WHITMAN, Roaming in Thought. Times, 2 June, 1898) 9 1 His daily prayer, far better understood While the people should patriotically and In acts than words, was simply doing good. cheerfully support their Government its JOHN GREENLEAF WHITTIER, Daniel Neall. functions do not include the support of the 2 people. The evil cannot brook delay, GROVER CLEVELAND, Message upon vetoing The good can well afford to wait. the Texas Seed Bill, 16 Feb., 1887. Give ermined knaves their hour of crime; 10 Ye have the future grand and great, The principal business of government is to The safe appeal of Truth to time! further and promote human strivings. JOHN GREENLEAF WHITTIER, For Right- WILBUR L. CROSS. (New York Times, 29 eousness' Sake. Mar., 1931) 3 11 There are two kinds of people on earth to- Of all the tasks of government, the most day, basic is to protect its citizens against vio- Just two kinds of people, no more, I say. lence. Not the good and the bad, for 'tis well un- JOHN FOSTER DULLES, Speech at the Asso- derstood ciated Press annual luncheon, 22 Apr., That the good are half bad and the bad are 1957. half good. 12 No! the two kinds of people on earth I We Republicans believe in limited govern- mean ment, but also in effective and humane gov- Are the people who lift and the people who ernment. We believe in keeping government lean. as close to the people as possible-in letting ELLA WHEELER WILCOX, Lifting and Lean- each citizen do for himself what he can do ing. for himself, then making any call for govern- ment assistance first on the local govern- GOSSIP, see Scandal ment, then on the state government, and GOVERNMENT only in the final resort on the Federal Gov- ernment. But we do not shrink from a recog- See also Constitution, Democracy, nition that there are national problems that Politics 4 require national solutions. When they arise, A government of laws and not of men. we act. JOHN ADAMS, Constitution of Massachu- DWIGHT D. EISENHOWER, Article written setts: Declaration of Rights, Art. 30 for the New York Herald Tribune, 25 (1780). See American Bar Association May, 1964. Journal, Dec., 1929, p. 747. 13 5 Our best protection against bigger govern- The essence of a free government consists in ment in Washington is better government in an effectual control of rivalries. the states. JOHN ADAMS, Discourses on Davila. DWIGHT D. EISENHOWER, Address before 6 National Governors' Conference, Cleve- You talk about capitalism and communism land, 8 June, 1964. and all that sort of thing, but the important 14 thing is the struggle everybody is engaged in An institution is the lengthened shadow of to get better living conditions, and they are one man. not interested too much in the form of gov- EMERSON, Essays, First Series: Self-Reli- ernment. ance. BERNARD BARUCH, Press Conference in 15 New York City, 18 Aug., 1964, on the No institution will be better than the institu- eve of his 94th birthday. tor. 7 EMERSON, Essays, Second Series: Charac- Law represents the effort of men to organize ter. society; government, the efforts of selfish- 16 ness to overthrow liberty. If you would rule the world quietly, you HENRY WARD BEECHER, Proverbs from must keep it amused. Plymouth Pulpit. EMERSON, Essays, Second Series: New THE WHITE HOUSE WASHINGTON FACSIMILE TRANSMITTAL SHEET NUMBER OF PAGES INCLUDING COVER 7 DATE 2/2/90 TO Bill LAcy FAX NUMBER OFFICE NUMBER COMMENTS FROM Stuphonie Blussey FAX NUMBER OFFICE NUMBER 456-7730 THE WHITE HOUSE WASHINGTON X. 7730 x-6510 2/08/90 andy Foster 500 contributors - mayor of Omaha P.J. Morgan (R) elected last year - former Congressman Hal Dant (Senate candidate against Jim Exon) - Congressmen Doug Berenter - Congresswoman Virginia Smith 10 minutes 1/31/90 Kry Orr (402) 471-2244 psst. Notalie Pietz (Dona) Bill seet Ann (402) 437 - 4305 insurance Woodman Accident d Lifer his. rennion get 500 pulling into filling station to Warley & I were chams Planning toget married back wh those kids It'd be Ha'd be work living in the monsion w/me. No, he'd be living in the Gords Cash D check Dru you the wite of the Gov. Dre you Mr. Koy Orr 2 Final R2 dinner Sat @ toble w/ R2 of Thotcher Oral Hircheiour do And what The you Baseball pitcher East Room Sected next to hore Ho 1/0-as Sequence dress - L.4. < net dress - K.O. Adm. Crowe offered pocket knote. Same knite to cut military budget Koy Orr supports Notblie death penolty Orr's Office (402) 471 - 2244 2/1/90 51 Andy Foster x 6150 breakfast? controversy? property tox system was antiquated - when reformed raised income taxes Unicameral ossured her wouldn't screw up taxes She's agoinst new taxes. TALKING POINTS FOR PRESIDENTIAL REMARKS Basic Theme: Kay Orr's leadership gets results for Nebraska. 1. When President Reagan and I went to Washington in 1981, we had a mission: turn America around, bring her back. I'm proud to say we succeeded by working hard and confronting the tough problems. In Nebraska, Kay Orr has accomplished the same thing. When she took office Nebraska's economy was suffering; jobs were tough to find. Nebraska's educational system was in need of repair. But Kay Orr's leadership has turned it around, working to solve these problems and many more. 2. I've seen Kay Orr's leadership first hand. She served as Co-chairman of the '88 Platform Committee, drafting the very platform upon which our party stood in the 1988 campaign. As our first woman Republican Governor, her reelection is a very high priority to me. It's no coincidence that Kay is one of the very first Republican Governors for whom I have done an event. 3. Governor Orr is a hard worker who has faced tough problems head on. She hasn't been afraid of taking courageous stands on a variety of issues important to Nebraska. Nebraskans can be proud of Kay Orr's accomplishments, strength and commitment to do what's right. 4. Kay Orr has gotten results for Nebraska through better economic opportunity for her citizens: 23,000 new jobs have been created lowering Nebraska's unemployment rate to 2.7%, the lowest in Nebraska since 1978 and the lowest of any state west of the Mississippi. nearly $2 1/2 billion in new business investments. personal income has increased about 6 1/2% per year. tourism is up by nearly a third. O net farm income has nearly tripled. 2 5. Governor Orr has helped to preserve Nebraska's unique quality of life: o Governor Orr has dramatically increased funding for education, making a greater commitment from kindergarten through the college level. o She's enacted tough mandatory sentences for drug dealers and set up a coordinated anti-drug program tying together. state and local law enforcement agencies O She's fought for a better environment and received the Nebraska Chapter of the National Wildlife Federation's "Conservationist of the Year" award of 1989. 6. But Governor Orr's hard work never ends. Just about a month ago, in her State of the State address, she proposed some tough new policies we can all applaud: O tougher laws for seizing drug dealer's assets, drug free school zones, increased penalties for drug use. o more law enforcement officials to arrest those who break our drug laws. D increased funding for prisons so those who break the law must pay the price. 7. In Kay Orr, Nebraska has a Governor you can count on. She hasn't been afraid of the tough problems, and more than once she's taken a stand that was good for Nebraska, but not for her politically. I can't imagine Nebraska citizens not wanting "Four more for Orr". Keep Kay Orr on the job, so she can finish the job she has begun so well. STATE OF THE STATE ADDRESS January 8, 1990 Mr. Speaker, Mr. President, ladies and gentlemen of the Legislature, friends, and my fellow citizens: It's indeed a pleasure to join you as we enter the 1990s and stand at the gateway to the 21st century. We live in an exceptional time. Dramatic changes swirl about us. Expecta- tions long suppressed are given new expression. The image is fresh in our minds of the young people of Berlin, tearing down the wall, an act symbolic of a desire for a better life...a richer political, economic, and cultural life. Those changes are happening all over East Central Europe and the Soviet Union. It's appropriate to recall that many of those who came to Nebraska had origins in Czechoslovakia, Poland, Germany, Russia, the Baltic countries and so many other nations. They came to Nebraska seeking a better life. They continue to come, receiving a better life. But let us acknowledge and rededicate ourselves to the fact that the better life requires constant effort from one genera- tion to another. As elected leaders of this state we bear much of the responsibility for making the decisions that ensure that better life. In this first year of the last decade of the 20th century we are positioned to take measured strides toward the future. So it is that I look forward to the nineties with enthusiasm and optimism convinced we can continue the momentum of recent years. A moments reflection will reveal the landmarks of our progress. Recall 1987. --Nebraska unemployment had climbed to 5.5 percent. Today it is 2.9 percent, the lowest rate of any state west of the Mississippi. - -Manufacturing employment was down dramatically. Today Nebraska's growth in manufacturing employment is one of the strongest in the nation. - Job creation slowed to a virtual standstill. Today 23,000 new jobs are on the drawing board. Approxi- mately 15,000 jobs are already filled by Nebraskans. (2) --State finances were buffeted constantly like a kite in a gusty wind. Today state finances have been stabilized while dozens of other states are in serious financial trouble. --Until recently advanced research and product development at the University were not competitive. Today a bold initiative for advanced research at the University of Nebraska promotes economic opportunities for our citizens. --Not long ago the morale of our teachers and professors was at a low ebb. Today salaries have been increased, and renewed financial commitments enhance education at all levels. The turn-around in Nebraska's economy has been noticed! A couple of months ago, the Christian Science Monitor reported that "New economic development incentives approved in 1987 have polished Nebraska's national image." These achievements evidence the strength and character of this state. The principles and ideals which bind us are far greater than the differences which divide us. We are committed to the pursuit of excellence in our educational system, and we place a high value on the unsurpassed quality of life that we enjoy. Just a few years ago the collective vision of our citizens was blurred by conditions of economic stress. It was essential that self-confidence be restored and that renewed economic vigor be returned to the main streets of our communities. It was a time to build, and we did it! Effective partnerships between government and the private sector were created. Individual initiative and hard work made those partnerships work. Those partnerships brushed away the clouds of misfortune and uncertainty, and set us back on course toward the realization of our hopes for the future. One of my major responsibilities as Governor is to listen to listen to the "whisper of the prairie," which, I must admit, sometimes sounds more like a roar. Through the Capital for a Day and most recently, the GREAT Town program, I have criss- crossed this state, listening to Nebraskans from our smallest towns and villages to our largest cities. Several communities hosted a Governor for the first time. (3) Both of these programs have given me a far greater understanding of the hopes and dreams, as well as the problems and frustrations of the people of Nebraska. There is personal reward in visiting these towns. It gives me strength of purpose to study the faces of children in their classrooms, to learn from the wisdom of our elders, whose experiences are the foundations upon which we build the future. It's in these communities where so much of the true spirit and real strength of our people lie. Bess Streeter Aldrich once explained her affection for her village of Elmwood with these words: "I have experienced a thousand times the warm-hearted hospitality, loyal friendships and deep sympathy of the small town." And, happily so have I. Nebraska small towns and their metropolitan counterparts form the fabric we call "community." Together those communities form the tapestry we call "Nebraska." With all that as background, let us turn our attention to the matter at hand- Where do we go from here to attain the better life for all Nebraskans? The proposals offered to you today will provide Nebraskans the opportunity to sustain and build on our progress, strengthen our people, and enrich our society as we prepare for the 21st century. FIRST I believe that the fundamental responsibility of government is to protect its citizens and provide for their well-being and safety. To achieve that end I am proposing strong legislation that will help eradicate the problem of illegal drugs in our society. --We must take away the profits --protect our children in our neighborhoods and schools, and --remove users from our streets. --We must strengthen enforcement and prosecution and --provide for expanded incarceration, treatment, and counseling. -We must continue to educate both young and old about this deadly scourge. (4) I want to make it crystal clear. Nebraska intends to rid itself of this evil which is corrupting our youth and spawning crime in our streets. There must be more state drug enforcement officers on the front lines, backed up by tougher laws to take the glamour out of using and the profit out of selling. I am recommending new appropriations to enhance enforcement, through the addition of 15 drug enforcement officers, 10 drug abuse resistance education officers, and the full reinstatement of paid overtime for the State Patrol. Under the leadership of Colonel Harold LeGrande, Nebraska law enforcement from our local police and county sheriffs, to state and federal investigators, are working together, making significant strikes against illegal narcotics activity. These are dedicated women and men, committed to protecting Nebraska families. I am working with Senator Conway to further develop his proposal to impose an immediate assessment on the street value of drugs found at the time of arrest. Property cars, houses, bank accounts would be subject to seizure to satisfy the judgment. Collection of this drug money should be used to help educate Nebraskans on the evils of drug abuse to provide for drug treatment programs, and to fund enforcement programs. In that connection, I urge the legislature to act promptly on Senator Chizek's LB 205, which will strengthen our state seizure and forfeiture laws and conform Nebraska law to the federal anti-drug statutes. I endorse Senator Pirsch's bill to create Drug-Free School Zones across the state. This proposal follows the same lines as Mayor P.J. Morgan's successful efforts in Omaha. I am working with Senator Lowell Johnson to deter drug dealers from involving minors in their illegal enterprise by making it a separate felony to hire minors as part of an illegal drug operation. I support Senator Langford's proposal to suspend the driver's licenses of those convicted of drug-related offenses. To combat the "laundering of money from illegal drug deals, I am proposing a statute that will require financial institutions to report large cash transactions. (5) Our prosecution forces will be strengthened by doubling the Drug Prosecution Unit in the Attorney General's office. Today our prison capacity is at 144 percent, 5th highest in the nation. Our new drug efforts will increase that percentage unless more prison space is provided. Thanks to the efforts of Senator Hannibal and his committee on Prison Overcrowding, we now have a coherent and logical basis for addressing the growing needs of the state's corrections system. Accordingly, funding for the Mition of 430 beds to the adult facilities will be recommended. We have no choice. If these prisoners are to have any chance of rehabilitation, they must have treatment and counseling; therefore, six mental health counselors should be reinstated in the Department of Corrections and a portion of the federal block grant reserved for law enforcement should be used to triple the current chemical dependency grant for both adults and juveniles in state custody. Drug abuse is a plague threatening every single family. It is being fought in communities across the state and led by committed Nebraskans like Tom Barlow, Joe Edmunsen, Willa Kirts, Carl Washington, Paul and Kandy Hofmeister, Creola Woodall, Pastor William Barlow, Parents in Action, the Mad Dads, Malone Community Center, and the Drug Free Youth Network at Scottsbluff High School. Nebraskans expect our total commitment to this war. That commitment is reinforced today. SECOND We must continue to encourage business expansion and bring new job opportunities to Nebraska. As I've traveled and listened to the people and been involved in their plans for the future, I have been impressed by the independence, determination, and optimism that motivates Nebraskans to improve the quality of life in their communities. In order to continue the revitalization of rural Nebraska increased resources must be available to the people who live and work in our rural communities. I have asked the Department of Economic Development to make changes in the Community Development Block Grant program to provide more flexibility to meet the various needs of our smaller communities. (6) Additional business assistance will be available through expansion of the direct loan and loan guarantee provisions, and funds will be available for retail business development in communities with populations of 25-hundred or less. THIRD Throughout our history, agriculture has been the foundation of Nebraska's economy. We are Number One in Agriculture, and prospects for the future are bright. Just last week Nebraska moved into first place as the leading cattle feeding state in the nation. Of the $2.4 billion that will be invested under the economic development initiatives, approximately $540 million will be devoted to the processing of agricultural products. That's good news. The rest of the story is that 1989 was a difficult year for Nebraska agriculture. Eighty-seven of 93 counties qualified for federal disaster relief. The Drought Assessment Response Team, activated last April, will continue to stay abreast of drought conditions gripping our state. Until our prayers for replenishing snows and rains are answered, the drought situation will be monitored closely; and we will be prepared to act on behalf of our farmers, feeders, and ranchers. This Fall, the people of Nebraska will once again have the opportunity to determine how agriculture real estate should be valued. I believe that ag-land should be fairly valued on its ability to produce. FOURTH Modern technology gives us the opportunity to link our state together to provide exciting new education opportunities to students and teachers in communities across the breadth of this state. I will recommend substantial funding for Phase II of NEBSAT, the Nebraska telecommunications delivery system for education. The benefits of NEBSAT range from allowing students in low-enrollment schools to receive instruction from teachers in larger schools, to an MBA program to be offered at the Panhandle Research and Extension Center in Scottsbluff. (7) In addition, funding will be sought to enhance the delivery of nursing school programs to Scottsbluff by the University of Nebraska Medical Center in Omaha. Matching funds will be proposed so that 22 additional schools can purchase satellite dishes to receive Star Schools and NEBSAT programming. In all, the system will link 82 communities across Nebraska. In that regard I wish to acknowledge the role of Jack McBride, Director of the Nebraska Educational Television Network, and the Telecommunications Coordinating and Planning Group, for bringing together a feasible plan for employing space age technology in the delivery of educational services. FIFTH The environment also demands our attention. Agriculture, municipalities, industries the people of Nebraska, and wildlife compete for the use of natural resources. Cooperation and compromise will be a hallmark of continuing programs to balance these competing needs. Specifically, in the area of water management non-point source pollution holds the greatest danger to all users of water in Nebraska. The NRDs are in the forefront of monitoring and addressing the management practices necessary to reduce the level of pollution. Indeed, they serve as a national example. FINALLY Property tax relief must be continued. One of the most important duties of any government is to insure that it takes from its citizens no more than is absolutely required to finance the services of government. Thanks to increased revenues resulting from our improved economy, we were able last year, through LB 84, to provide more than $100 million dollars in property tax relief to Nebraska property taxpayers. (8) If there is one issue on which there is near unanimous agreement in our state, it is that local property taxes are too high. It is only proper that the state should, to the extent it can, assist in easing the burden borne by local units of government. Therefore, I will be proposing again this year, the legislature provide property tax relief in an amount of nearly $100 million dollars. Tax relief is possible, but it must begin with spending relief. Spending choices are never easy. Neither are vetoes. The drought last year caused me to be cautious about the state's economy. I vetoed $66 million of additional spending in light of that harsh reality. There are signs that growth in our nation's economy is slowing down. Those signs are also evident in the tax receipts of states in our own region. We in Nebraska must carefully balance a recovering economy with fiscal responsibility. In that regard you acted with commendable responsibility during the November special session in moving to protect our school districts, our cities and villages, our counties and other local governments from the threatened loss of millions of dollars in property tax revenue growing out of congressional action and decisions by federal and state courts. Together with Senator Warner's LB 7, the measures proposed offered a practical solution to this dilemma. As you know, my expanded Response Team has been examining the constitutional questions surrounding the personal property tax. The enlarged group is chaired by Attorney General Robert Spire. I pledge my cooperation as they fashion solutions that will pass final constitutional muster. In connection with your consideration of property tax legislation, you will be dealing with the recommendations of the School Finance Review Commission. While I have some reservations about the Commission's proposals, I will follow the debate and discussion closely. If there is to be a shift from the property tax base to sales and/or income taxes, Nebraskans expect the absolute assurance that change will not increase taxes. As we look ahead toward the 21st century, we can foresee expanded horizons for growth and development in Nebraska. We can envision changes that will come with increasing swiftness. The future will be filled with challenges and bright with promise. (9) And in that vision, there is one constant that sustains and supports us the quality of life which is uniquely ours. My own view is that our clean air, our rivers and lakes, and a wealth of recreational opportunities are very important to our quality of life. Our good schools, high literacy rate, affordable living costs, and the cultural opportunities to enjoy add much to long and healthy living in Nebraska. But I think the essence of the quality of life is in our neighbors, our families, our friends. It is in the strength of the character of our people, in the willingness to work to achieve our visions. Nebraska's greatness today results from people not being guaranteed success, but from people having been given the opportunity for success. Nebraskans have put their trust in you and their trust in me to do what is right. The key is knowing how much is right, and how much is enough. There is a serenity prayer which asks God: "Grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference." In much the same way those of us entrusted with government leadership need to know what is necessary to provide, and what is not and we need to have the wisdom to know the difference. The 29th chapter of the Book of Proverbs reminds us: "Where there is no vision, the people perish." Let us trust one another. Let us seek together the inspiration, the openness, and the vision for a brighter future. Our tomorrows will be decided by the courage and determina- tion of all Nebraskans. Together those of us who have been elected by the people to serve can help bring their vision to reality. You have my every good wish for a successful and productive session. May your deliberations be blessed by the Almighty. END STATE OF THE STATE ADDRESS January 8, 1990 Mr. Speaker, Mr. President, ladies and gentlemen of the Legislature, friends, and my fellow citizens: It's indeed a pleasure to join you as we enter the 1990s and stand at the gateway to the 21st century. We live in an exceptional time. Dramatic changes swirl about us. Expecta- tions long suppressed are given new expression. The image is fresh in our minds of the young people of Berlin, tearing down the wall, an act symbolic of a desire for a better life a richer political, economic, and cultural life. Those changes are happening all over East Central Europe and the Soviet Union. It's appropriate to recall that many of those who came to Nebraska had origins in Czechoslovakia, Poland, Germany, Russia, the Baltic countries and so many other nations. They came to Nebraska seeking a better life. They continue to come, receiving a better life. But let us acknowledge and rededicate ourselves to the fact that the better life requires constant effort from one genera- tion to another. As elected leaders of this state we bear much of the responsibility for making the decisions that ensure that better life. In this first year of the last decade of the 20th century we are positioned to take measured strides toward the future. So it is that I look forward to the nineties with enthusiasm and optimism convinced we can continue the momentum of recent years. A moments reflection will reveal the landmarks of our progress. Recall 1987. --Nebraska unemployment had climbed to 5.5 percent. Today it is 2.9 percent, the lowest rate of any state west of the Mississippi. -Manufacturing employment was down dramatically. Today Nebraska's growth in manufacturing employment is one of the strongest in the nation. - -Job creation slowed to a virtual standstill. Today 23,000 new jobs are on the drawing board. Approxi- mately 15,000 jobs are already filled by Nebraskans. (2) State finances were buffeted constantly like a kite in a gusty wind. Today state finances have been stabilized while dozens of other states are in serious financial trouble. -Until recently advanced research and product development at the University were not competitive. Today a bold initiative for advanced research at the University of Nebraska promotes economic opportunities for our citizens. -Not long ago the morale of our teachers and professors was at a low ebb. Today salaries have been increased, and renewed financial commitments enhance education at all levels. The turn-around in Nebraska's economy has been noticed! A couple of months ago, the Christian Science Monitor reported that "New economic development incentives approved in 1987 have polished Nebraska's national image." These achievements evidence the strength and character of this state. The principles and ideals which bind us are far greater than the differences which divide us. We are committed to the pursuit of excellence in our educational system, and we place a high value on the unsurpassed quality of life that we enjoy. Just a few years ago the collective vision of our citizens was blurred by conditions of economic stress. It was essential that self-confidence be restored and that renewed economic vigor be returned to the main streets of our communities. It was a time to build, and we did it! Effective partnerships between government and the private sector were created. Individual initiative and hard work made those partnerships work. Those partnerships brushed away the clouds of misfortune and uncertainty, and set us back on course toward the realization of our hopes for the future. One of my major responsibilities as Governor is to listen to listen to the "whisper of the prairie,' which, I must admit, sometimes sounds more like a roar. Through the Capital for a Day and most recently, the GREAT Town program, I have criss- crossed this state, listening to Nebraskans from our smallest towns and villages to our largest cities. Several communities hosted a Governor for the first time. (3) Both of these programs have given me a far greater understanding of the hopes and dreams, as well as the problems and frustrations of the people of Nebraska. There is personal reward in visiting these towns. It gives me strength of purpose to study the faces of children in their classrooms, to learn from the wisdom of our elders, whose experiences are the foundations upon which we build the future. It's in these communities where so much of the true spirit and real strength of our people lie. Bess Streeter Aldrich once explained her affection for her village of Elmwood with these words: "I have experienced a thousand times the warm-hearted hospitality, loyal friendships and deep sympathy of the small town." And, happily so have I. Nebraska small towns and their metropolitan counterparts form the fabric we call "community. Together those communities form the tapestry we call "Nebraska." With all that as background, let us turn our attention to the matter at hand Where do we go from here to attain the better life for all Nebraskans? The proposals offered to you today will provide Nebraskans the opportunity to sustain and build on our progress, strengthen our people, and enrich our society as we prepare for the 21st century. FIRST I believe that the fundamental responsibility of government is to protect its citizens and provide for their well-being and safety. To achieve that end I am proposing strong legislation that will help eradicate the problem of illegal drugs in our society. --We must take away the profits --protect our children in our neighborhoods and schools, and --remove users from our streets. -We must strengthen enforcement and prosecution and --provide for expanded incarceration, treatment, and counseling. --We must continue to educate both young and old about this deadly scourge. (4) I want to make it crystal clear. Nebraska intends to rid itself of this evil which is corrupting our youth and spawning crime in our streets. There must be more state drug enforcement officers on the front lines, backed up by tougher laws to take the glamour out of using and the profit out of selling. I am recommending new appropriations to enhance enforcement, through the addition of 15 drug enforcement officers, 10 drug abuse resistance education officers, and the full reinstatement of paid overtime for the State Patrol. Under the leadership of Colonel Harold LeGrande, Nebraska law enforcement from our local police and county sheriffs, to state and federal investigators, are working together, making significant strikes against illegal narcotics activity. These are dedicated women and men, committed to protecting Nebraska families. I am working with Senator Conway to further develop his proposal to impose an immediate assessment on the street value of drugs found at the time of arrest. Property cars, houses, bank accounts would be subject to seizure to satisfy the judgment. Collection of this drug money should be used to help educate Nebraskans on the evils of drug abuse to provide for drug treatment programs, and to fund enforcement programs. In that connection, I urge the legislature to act promptly on Senator Chizek's LB 205, which will strengthen our state seizure and forfeiture laws and conform Nebraska law to the federal anti-drug statutes. I endorse Senator Pirsch's bill to create Drug-Free School Zones across the state. This proposal follows the same lines as Mayor P.J. Morgan's successful efforts in Omaha. I am working with Senator Lowell Johnson to deter drug dealers from involving minors in their illegal enterprise by making it a separate felony to hire minors as part of an illegal drug operation. I support Senator Langford's proposal to suspend the driver's licenses of those convicted of drug-related offenses. To combat the "laundering of money from illegal drug deals, I am proposing a statute that will require financial institutions to report large cash transactions. (5) Our prosecution forces will be strengthened by doubling the Drug Prosecution Unit in the Attorney General's office. Today our prison capacity is at 144 percent, 5th highest in the nation. Our new drug efforts will increase that percentage unless more prison space is provided. Thanks to the efforts of Senator Hannibal and his committee on Prison Overcrowding, we now have a coherent and logical basis for addressing the growing needs of the state's corrections system. Accordingly, funding for the addition of 430 beds to the adult facilities will be recommended. We have no choice. If these prisoners are to have any chance of rehabilitation, they must have treatment and counseling; therefore, six mental health counselors should be reinstated in the Department of Corrections and a portion of the federal block grant reserved for law enforcement should be used to triple the current chemical dependency grant for both adults and juveniles in state custody. Drug abuse is a plague threatening every single family. It is being fought in communities across the state and led by committed Nebraskans like Tom Barlow, Joe Edmunsen, Willa Kirts, Carl Washington, Paul and Kandy Hofmeister, Creola Woodall, Pastor William Barlow, Parents in Action, the Mad Dads, Malone Community Center, and the Drug Free Youth Network at Scottsbluff High School. Nebraskans expect our total commitment to this war. That commitment is reinforced today. SECOND We must continue to encourage business expansion and bring new job opportunities to Nebraska. As I've traveled and listened to the people and been involved in their plans for the future, I have been impressed by the independence, determination, and optimism that motivates Nebraskans to improve the quality of life in their communities. In order to continue the revitalization of rural Nebraska increased resources must be available to the people who live and work in our rural communities. I have asked the Department of Economic Development to make changes in the Community Development Block Grant program to provide more flexibility to meet the various needs of our smaller communities. (6) Additional business assistance will be available through expansion of the direct loan and loan guarantee provisions, and funds will be available for retail business development in communities with populations of 25-hundred or less. THIRD Throughout our history, agriculture has been the foundation of Nebraska's economy. We are Number One in Agriculture, and prospects for the future are bright. Just last week Nebraska moved into first place as the leading cattle feeding state in the nation. Of the $2.4 billion that will be invested under the economic development initiatives, approximately $540 million will be devoted to the processing of agricultural products. That's good news. The rest of the story is that 1989 was a difficult year for Nebraska agriculture. Eighty-seven of 93 counties qualified for federal disaster relief. The Drought Assessment Response Team, activated last April, will continue to stay abreast of drought conditions gripping our state. Until our prayers for replenishing snows and rains are answered, the drought situation will be monitored closely; and 111 we will be prepared to act on behalf of our farmers, feeders, and ranchers. This Fall, the people of Nebraska will once again have the opportunity to determine how agriculture real estate should be valued. I believe that ag-land should be fairly valued on its ability to produce. FOURTH Modern technology gives us the opportunity to link our state together to provide exciting new education opportunities to students and teachers in communities across the breadth of this state. I will recommend substantial funding for Phase II of NEBSAT, the Nebraska telecommunications delivery system for education. The benefits of NEBSAT range from allowing students in low-enrollment schools to receive instruction from teachers in larger schools, to an MBA program to be offered at the Panhandle Research and Extension Center in Scottsbluff. (7) In addition, funding will be sought to enhance the delivery of nursing school programs to Scottsbluff by the University of Nebraska Medical Center in Omaha. Matching funds will be proposed so that 22 additional schools can purchase satellite dishes to receive Star Schools and NEBSAT programming. In all, the system will link 82 communities across Nebraska. In that regard I wish to acknowledge the role of Jack McBride, Director of the Nebraska Educational Television Network, and the Telecommunications Coordinating and Planning Group, for bringing together a feasible plan for employing space age technology in the delivery of educational services. FIFTH The environment also demands our attention. Agriculture, municipalities, industries the people of Nebraska, and wildlife compete for the use of natural resources. Cooperation and compromise will be a hallmark of continuing programs to balance these competing needs. Specifically, in the area of water management non-point source pollution holds the greatest danger to all users of water in Nebraska. The NRDs are in the forefront of monitoring and addressing the management practices necessary to reduce the level of pollution. Indeed, they serve as a national example. FINALLY Property tax relief must be continued. One of the most important duties of any government is to insure that it takes from its citizens no more than is absolutely required to finance the services of government. Thanks to increased revenues resulting from our improved economy, we were able last year, through LB 84, to provide more than $100 million dollars in property tax relief to Nebraska property taxpayers. (8) If there is one issue on which there is near unanimous agreement in our state, it is that local property taxes are too high. It is only proper that the state should, to the extent it can, assist in easing the burden borne by local units of government. Therefore, I will be proposing again this year, the legislature provide property tax relief in an amount of nearly $100 million dollars. Tax relief is possible, but it must begin with spending relief. Spending choices are never easy. Neither are vetoes. The drought last year caused me to be cautious about the state's economy. I vetoed $66 million of additional spending in light of that harsh reality. There are signs that growth in our nation's economy is slowing down. Those signs are also evident in the tax receipts of states in our own region. We in Nebraska must carefully balance a recovering economy with fiscal responsibility. In that regard you acted with commendable responsibility during the November special session in moving to protect our school districts, our cities and villages, our counties and other local governments from the threatened loss of millions of dollars in property tax revenue growing out of congressional action and decisions by federal and state courts. Together with Senator Warner's LB 7, the measures proposed offered a practical solution to this dilemma. As you know, my expanded Response Team has been examining the constitutional questions surrounding the personal property tax. The enlarged group is chaired by Attorney General Robert Spire. I pledge my cooperation as they fashion solutions that will pass final constitutional muster. In connection with your consideration of property tax legislation, you will be dealing with the recommendations of the School Finance Review Commission. While I have some reservations about the Commission's proposals, I will follow the debate and discussion closely. If there is to be a shift from the property tax base to sales and/or income taxes, Nebraskans expect the absolute assurance that change will not increase taxes. As we look ahead toward the 21st century, we can foresee expanded horizons for growth and development in Nebraska. We can envision changes that will come with increasing swiftness. The future will be filled with challenges and bright with promise. (9) And in that vision, there is one constant that sustains and supports us the quality of life which is uniquely ours. My own view is that our clean air, our rivers and lakes, and a wealth of recreational opportunities are very important to our quality of life. Our good schools, high literacy rate, affordable living costs, and the cultural opportunities to enjoy add much to long and healthy living in Nebraska. But I think the essence of the quality of life is in our neighbors, our families, our friends. It is in the strength of the character of our people, in the willingness to work to achieve our visions. Nebraska's greatness today results from people not being guaranteed success, but from people having been given the opportunity for success. Nebraskans have put their trust in you and their trust in me to do what is right. The key is knowing how much is right, and how much is enough. There is a serenity prayer which asks God: "Grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference." In much the same way those of us entrusted with government leadership need to know what is necessary to provide, and what is not and we need to have the wisdom to know the difference. The 29th chapter of the Book of Proverbs reminds us: "Where there is no vision, the people perish." Let us trust one another. Let us seek together the inspiration, the openness, and the vision for a brighter future. Our tomorrows will be decided by the courage and determina- tion of all Nebraskans. Together those of us who have been elected by the people to serve can help bring their vision to reality. You have my every good wish for a successful and productive session. May your deliberations be blessed by the Almighty. END order all state agencies to submit budgets 5% lower than this year's and then "re- RNIE LEYBA years. As a former ing Governor Richard Lamm, the confi- sell their programs both to the legislature dent and energetic Romer sometimes and to me." greeted visitors with a brusque "Tell me Kay Orr. Nebraska's state treasurer be- who you are and what you want," soft- came the first Republican woman Gover- ening the approach with a smile. He nor as well as the first woman to be elect- has been tightfisted with state funds, ed Governor of a state by defeating anoth- and is more solicitous of the Republican er woman, Democrat Helen Boosalis. An legislators than Lamm has been. Yet articulate fiscal conservative, Orr, 47, had when his Republican opponent Ted climbed the party ladder, starting as an Strickland generously proposed that a envelope stuffer in 1963. Unafraid to $250 million windfall from the federal tackle difficult problems, Orr an- tax-reform act be passed along to state nounced on the morning after the election Colorado Democrat Roy Romer taxpayers at about $200 each, Romer that she would form a jobs creation coun- suggested that much of the money be cil to help small towns recover from the equipment dealer, Colorado Democrat used instead for education, highways farm depression and a task force to try to Romer, 58, turned his business acumen and other investments in Colorado's fu- remedy the state's agricultural ills. to advantage as state treasurer: he de- ture. He won anyway. -By Ed Magnuson. Roy Romer. A self-made millionaire vised a bond investment plan that Reported by Dan Goodgame/Los Angeles and as a real estate developer and heavy earned the state $32 million in two Joseph J. Kane/Atlanta Meet the Newest Kennedy land Republican Helen Delich Bentley, 41% to 59%.) Kennedy has been faulted for his impulsive nature; he is no intellectual and appears unreflective. "Clearly, he's not a 0 n his way to a fund raiser, keyed up about his speech, Joe great thinker," says one longtime Massachusetts political ob- Kennedy repeats his political mantra to himself: "Democ- server. "But he makes up for it by doing." A close friend racy, opportunity, America His navy gabardine campaign notes, "He's incredibly competitive. Imagine racing him in a suit is shiny by now from overuse on the trail. "Democracy, 100-yard dash with a brick wall at the 101st yard. I'd start opportunity, America At a luncheon for 250 elderly peo- slowing down at the 90th yard, but Joe will run full tilt to win ple, the tousled candidate gives his stump speech in a booming the race, even though he is certain to hit the wall." voice, chopping the air in disjointed fashion, stressing almost Kennedy's combativeness often works to his advantage. every word. His speeches feel like workouts. Then Kennedy Before a debate during the primary race, Kennedy's staff bounds from the podium. No cheek goes unkissed. heard that his principal rival, George Bachrach, intended to Joseph Kennedy II has a little bit of a lot of Kennedys in confront him with a question about Citizens Energy's possi- him: his father Robert's unceas- ble links with Libya. A check ing energy and passion; his showed there was no connec- grandfather Joseph's single- tion. When Bachrach leveled the minded dedication to winning; charge, Kennedy sprang a coun- and his uncle Ted's occasional in- terattack. "Libya offered Sirhan articulateness, mitigated by only Sirhan asylum after he killed my a touch of the bemused self- father," he said, eyes blazing. awareness that was part of the "For you to think for one second wit and style of his late uncle the that Citizens Energy would have President. But the Kennedy trait anything to do with Libya is just that carries Joe is the physical totally off base." The race was charisma and boundless (albeit never close after that. often unfocused) energy that Kennedy admits that he has have become a family trademark. no grand national vision. His At 34, Joe is the eldest male premise is simple. "The truth is among the 28 cousins who make that hardworking families are up the third Kennedy genera- struggling and unable to partici- tion. In 1979, after a checkered pate fully in the American academic past, Kennedy formed dream," he says. "That's not Citizens Energy, a nonprofit right." Says one campaign advis- corporation that distributes low- er: "There's still a child's sim- cost heating oil in Massachu- plistic view of the world in him. setts. Throughout his race for He doesn't understand that the the Cambridge seat being vacat- world is a place of massive ed by House Speaker Tip grays." In Congress that may O'Neill, Kennedy has cam- Joe II: he has his father's unceasing energy and passion cause problems. "Joe is still vola- paigned on a platform of fiscal tile and combative," says a veter- responsibility, shunning the kind of straightforward, do- an of Ted Kennedy's 1980 campaign. Those qualities do not good liberalism that he advocated in his younger days. ease one's way through a political body where compromise is Kennedy defeated his opponent, Businessman Clark highly rewarded. A short fuse is particularly dangerous for a Abt, 72% to 28%. Characteristically, he puts his victory politician who, by virtue of his name alone, will always stand in emotional perspective: "If you just do it the way you in the spotlight of public attention. But Joe is not particularly really believe it should be done, there is some justice." worried. "I've played on plenty of football teams," he says. (His sister Kathleen Kennedy Townsend did not fare so well "And I'm used to being one of 22." -By Amy Wilentz in her bid for Congress. She lost to incumbent Mary- Reported by Joelle Attinger/Boston 48 TIME, NOVEMBER ative known as Partners In Learn- has not only survived, but thrived, time in our history. Manufacturing ing, which emphasizes péer tutor- under democracy, is a monument to employment is up and new jobs are ing and mentoring in our schools, their vision and wisdom. being created in our agri-business and seeks to identify and create a Government should provide an sector. The main streets of our million mentors over the next three- atmosphere of freedom and growth small and large communities are to-five years. and an environment of opportunity, once again alive with activity. I am sure you will agree that in which each citizen can develop This recovery is, in part, a result brainpower is our most valuable re- his or her God-given potential to of Reagan-Bush policies which have source. Through a strong state-fed- the fullest. I look forward to work- spurred economic growth across the eral partnership for educational ex- ing with you to develop that atmos- nation. We are in a new age of op- cellence, brainpower can become phere on the state and national timistic expansion. Your presiden- our most plentiful and renewable levels. cy will provide the leadership for resource. Gov. John Ashcroft (R) continuing policies based on free Gov. Rudy Perpich (DFL) Missouri enterprise, free markets and limit- Minnesota ed government. The stage has been set for a dy- Congratulations on your well de- namic partnership in which people Our experience at the state level served victory. We in Montana ex- can direct government, and govern- has proved that there are things tend our best wishes to your admin- ment empowers people to make government has to do which no istration and look forward to work- their own choices and to solve their other institution can or will do - ing with you on issues of concern to own problems. things that will ultimately affect our state and the nation. As you lead our nation guided by our quality of life and our business We pledge our full cooperation American values, Nebraskans wish climate. I would ask, Mr. President, with your office as we are asked to you well. that you join Mississippians in a play our part in solving national commitment to the fundamental problems. We ask in return that Gov. Kay A. Orr (R) Nebraska principle of giving people all the your administration give our in- government they need, but no more terests due consideration when set- government than they need. I hope ting national policy. One of Nevada's major concerns you will apply the lessons we have Montanans are celebrating their entering the new year involves a learned that we, as concerned statehood centennial this year. As proposal to store radioactive nuclear citizens, can be compassionate with- a centennial governor, I invite you waste at a site roughly 100 miles out being wasteful. Most impor- and your wife Barbara to join us in northwest of Las Vegas. tantly, we must remember that the 1989 in recognition of the achieve- Congress has targeted Yucca state of our economy tomorrow will ments and richness of Montana's Mountain in Nevada to dump the be determined by the commitment heritage. nation's high-level nuclear waste. we make to our children today. This There are a number of serious con- Gov. Stan Stephens (R) will require government to make cerns with Yucca Mountain that Montana that commitment to play a positive question its scientific suitability for partnership role. storing deadly radioactive waste, Gov. Ray Mabus (D) On behalf of the people of Nebras- and transportation presents an ad- Mississippi ka, it is my pleasure to congratu- ditional problem: Truck loads of late you on your election as presi- deadly waste crisscrossing Ameri- dent of the United States. ca and passing through or near ma- On behalf of all Missourians, I ex- Nebraskans, who cast 60 percent jor metropolitan areas clearly place tend heartiest congratulations on of their votes for you on Nov. 8, look our residents dangerously close to your recent election and warmest forward to your leadership and com- unsafe conditions. Regardless of best wishes for a successful term as mitment to building on the econom- where the dump is placed, science president. ic success of the past eight years. and safety should be the primary Our democratic government stands Nebraska is in the midst of an considerations. However, the De- as a living monument to people of economic recovery that has revital- partment of Energy, in its efforts to courage and vision - our fore- ized our state. More Nebraskans expedite the construction of a re- fathers. The fact that our nation are at work today than at any other- pository, has bypassed these two Cov. Gov. Gov. Gov. Gov. Acting Cov. Rudy Perpich Ray Mabus John Ashcroft Stan Stephens Kay A. Orr Bob Miller THE LITTLE, BROWN BOOK OF Ba ANECDOTES so CLIFTON FADIMAN GENERAL EDITOR LB LITTLE, BROWN AND COMPANY BOSTON TORONTO TWAIN 556 away on his travels and none of them knew his whom he began to boast of his sizable catch address. So they mailed a letter superscribed appeared at first unresponsive, then positively "Mark Twain, God Knows Where." Some grim. "By the way, who are you, sir?" inquired weeks later they received an acknowledgment Twain airily. "I'm the state game warden," was reading simply: "He did." the unwelcome response. "Who are you?" Compare SIR HUMPHRY DAVY 1. Twain nearly swallowed his cigar. "Well, to be perfectly truthful, warden," he said hastily, 16 After attending a service conducted by "I'm the biggest damn liar in the whole United Dr. Doane, later bishop of Albany, Mark States." Twain congratulated him on an enjoyable ser- vice. "I wélcomed it as an old friend," he went 20 Twain was tired of receiving photographs on. "I have a book at home containing every from men claiming to be his double. To cope word of it." Dr. Doane bristled. "I am sure you with the heavy correspondence this entailed he have not," he replied huffily. "Indeed I have," composed the following form letter and had Twain persisted. "Well, I'd like to have a look his printer run off a few hundred copies: "My at it then. Could you send it over to me?" The dear Sir, I thank you very much for your letter following day Twain sent him an unabridged and your photograph. In my opinion you are dictionary. more like me than any other of my numerous doubles. I may even say that you resemble me 17 A devotee of cigars, Mark Twain was con- more closely than I do myself. In fact, I intend temptuous of those who made a great to-do to use your picture to shave by. Yours thank- about giving up smoking. He always claimed fully, S. Clemens." that it was easy to quit: "I've done it a hundred times!" 21 "In a world without women," Twain was once asked, "what would men become?" 18 Mark Twain, careless about his dress, one "Scarce, sir," replied Twain. "Mighty scarce." day called on Harriet Beecher Stowe without his necktie. On his return Mrs. Clemens no- 22 In later life Mark Twain suffered periodi- ticed the omission and scolded him. A little cally from bronchitis and arthritis. Whenever later a messenger turned up on Mrs. Stowe's the newspapers reported that he had had an- doorstep and handed her a small package. In- other attack, well-wishers would send him pre- side was a black necktie, and a note: "Here is a scriptions, remedies, nostrums, and elixirs of necktie. Take it out and look at it. I think I life in the hope of bringing about his recovery. stayed half an hour this morning without this He had a standard reply for acknowledging necktie. At the end of that time, will you kindly these unsolicited items: "Dear Sir (or Madam), return it, as it is the only one I have. Mark Twain." I try every remedy sent to me. I am now on No. 87. Yours is 2,653. I am looking forward to its beneficial results." 19 Mark Twain loved to brag about his hunt- ing and fishing exploits. He once spent three 23 When Mark Twain was born in No- weeks fishing in the Maine woods, regardless vember 1835, Halley's comet blazed in the of the fact that it was the state's closed season night sky. Twain often referred to this, and for fishing. Relaxing in the lounge car of the came to think of himself and the comet as "un- train on his return journey to New York, his accountable freaks" which, having come in to- catch iced down in the baggage car, he looked gether, must go out together. He was right: for someone to whom he could relate the story when he died in April 1910, Halley's comet was of his successful holiday. The stranger to again in the sky. Webster's Biographical Dictionary a Merriam-Webster R R G. & C. Merriam Company, Publishers Springfield, Massachusetts Castro 266 Catherine Escolhidas (1902), and dramas, as 0 Anel de Policrates Cath'a-rine (kăth'd-rin). See CATHERINE. (1907). Catharine Jagello. See JAGELLON. Castro, Fidel. 1927- Cuban political leader, Cath'cart (kăth'kërt; -kärt), Sir William Schaw. 1st b. Mayarí. Led revolution against President Fulgencio Earl Cathcart. 1755-1843. English soldier and diplo- Batista (1959); premier (from 1959). mat. Son of Charles Cathcart (1721-1776; 9th Baron Cas'tro (käs'trō), Inés (or Inez or sometimes, Anglicized, Cathcart, ambassador to Russia 1768-71). Commanded Agnes) de. 1320?-1355. Spanish noblewoman, de- an irregular corps, the "British legion," in America scendant of royal family of Castile; m. (1354) Dom Pedro (1777-80); served in Low Countries (1793-95); com- secretly; murdered at Coimbra by order of Alfonso who mander in chief in Ireland (1803-05); bombarded feared serious political consequences from the unequal Copenhagen (1807); general (1812); ambassador at St. union. Episode was celebrated by novelists and poets, Petersburg (1814-21). esp. by Camoëns in The Lusiad and by Antônio Ferreira His son Charles Murray (1783-1859), 2d earl, styled in Inês de Castro. Lord Green'ock [grin'ůk] (1807-43); soldier; served Cas'tro (kásh'troo), João de. 1500-1548. Portuguese in Italy and Sicily (1805-06), at Walcheren (1809), in naval commander, b. Lisbon; placed in command of fleet Iberian Peninsula (1810-12), as quartermaster general to rid European seas of pirates (1543). To Portuguese (1814-23), at Waterloo; commander in chief in Canada India (1545) as viceroy ad interim; defeated Mahmud (1846-49); general (1854); discovered new mineral, Shah III, King of Gujarat; relieved city of Diu; subdued greenockite (1841). Malacca; appointed viceroy (1547) by John III. Sir George (1794-1854), soldier; 3d son of 1st earl; aide- Cas'tro (käs'tro), José María. 1818-1893. Costa Rican de-camp to Wellington at Waterloo and in France (1815- statesman, b. San José. President of Costa Rica (1847- 18); commander in chief in South Africa (1852-54); 49, 1866-68); called "Founder of the Republic." conquered Kaffirs and Basutos; killed at battle of Inker- Castro, Juan José. 1895-1968. Argentine orchestra con- man. ductor and composer. Ca'the-li'neau' (kát'le'no'), Jacques. 1759-1793. Castro, Manuel Fernández de. See FERNÁNDEZ DE French Royalist; leader of Vendeans in uprising of 1793; CASTRO. died (July 4, 1793) of wounds received leading assault Castro y Bell-vís' (ê bělyvěs), Guillén de. 1569- on Nantes. 1631. Spanish dramatist, b. Valencia; best known for Cath'er (kăth'er), Willa Sibert. 1873-1947. American Las Mocedades del Cid, source for Corneille's Le Cid novelist, b. Winchester, Va. B.A., Nebraska (1895); on Castro y Velasco, Antonio Acisclo Palomino de. See staff of Pittsburgh Daily Leader (1898-1901); associate PALOMINO. editor of McClure's Magazine (1906-12). Author of Cas'tro-vie'jo (käs'trô-vye'hõ), Ramón. 1904- April Twilights (verse; 1903), and the novels Alexander's Spanish-born American ophthalmologist. Bridge (1912), 0 Pioneers (1913), The Song of the Lark Ca-struc'cio Ca'stra-ca'ni de'gli An'tel-mi-nel'li (1915), My Antonia (1918), Youth and the Bright Medusa (kästroot'chô kästrä-kä'ne dă'lye (1920), One of Ours (1922; awarded Pulitzer prize), A 1281-1328. Italian soldier and Ghibelline leader; con- Lost Lady (1923), The Professor's House (1925), My quered Lucca and Pistoia; assumed control of Pisa; Mortal Enemy (1926), Death Comes for the Archbishop created imperial vicar and duke of Lucca (1327). (1927), Shadows on the Rock (1931), Obscure Destinies Caswallawn or Caswallon. See CASSIVELAUNUS. (1932), Lucy Gayheart (1935), Not Under Forty (1936), Cas'well (kăz'wěl;-w Richard. 1729-1789. American Sapphira and the Slave Girl (1940). Revolutionary officer, b. in Cecil Co., Md.; delegate to Cath'er-ine (kăth'er-in). Name of three wives of king Continental Congress (1774-76); colonel in Revolution- Henry VIII of England. See (1) CATHERINE OF ARAGON; ary army; governor of North Carolina (1776-80; 1785- (2) Catherine HOWARD; (3) Catherine PARR. 87). Catherine or Catharine. Name of two empresses of Cat (kăt), Christopher. fl. 1703-1733. English tavern- Russia: keeper, of "The Cat and Fiddle" in London, meeting Catherine I. Russ. Ekaterina Alekseevna. Orig. place of the Kit-cat Club, a social club for Whigs. name Marfa Ska.vron'ska.ya (skü-vrôn'skü-yü). Ca'ta·la'ni (kä'tä-lä'ne), Angelica. 1780-1849. Italian 1684?-1727. Empress (1725-27). Of Livonian peasant operatic soprano. origin; m. a Swedish dragoon; taken prisomer at Marien- Ca'tar-giu' (kä'tär·joo'), Lascăr. 1823-1899. Rumanian burg (1702); became serf of Prince Menshikov. At- statesman; prime minister of Rumania (1866, 1871-76, tracted attention of Peter I the Great and became his 1889, 1891-95); leader in Senate of Conservative opposi- mistress (1703); exerted influence over Peter and became tion to Brătianu (1876-88). his adviser; saved his life in campaign against Turks on Ca.te'na (kä-tã'nä), Vincenzo di Bia'gio (de byä'jō). the Prut (1711); m. Peter as his second wife (1712); C. 1470-1531. Venetian painter; pupil of Bellini. His crowned empress (1724). Succeeded Peter as Catherine I works include Holy Trinity (church of San Simeone (1725); during short peaceful reign, relied upon Prince Grande, Venice), Knight Adoring the Christ Child (Na- Menshikov; established supreme privy council; founded tional Gallery, London), Christ Giving the Keys to St. Russian Academy of Sciences. Succeeded by grandson Peter (Boston). Peter II. Caterina. Italian form of CATHERINE. Catherine II. Called Catherine the Great. Russ. Cates'by (kãts'bi), Mark. 1679?-1749. English natural- name Ekaterina Alekseevna. Orig. name (Anglicized) ist and traveler. In America (1712-19, 1722-25), study- Sophia Augusta Frederica of An'halt-Zerbst' (än'- ing flora and fauna. Author of The Natural History of hält-tsěrpst"). Called "the Semiramis of the North." Carolina, Florida, and the Bahama Islands. 1729-1796. Empress (1762-96). Married (1745) Peter Catesby, Robert. 1573-1605. English conspirator, son (later Peter III), nephew of Empress Elizabeth; soon be- of Roman Catholic squire; took part in rebellion of earl came estranged from Peter, both being subjects of much of Essex (1601); named accomplice in Rye Plot (1603) court scandal; soon after Peter's accession (1762), de- to seize James I and force concessions of religious toler- posed him with help of her paramour Grigori Orlov, ance; chief instigator of Gunpowder Plot (1604-05); be- Potëmkin, Princess Dashkova, and others; usurped trayed by Francis Tresham; killed resisting arrest. throne (1762). During her reign, serfdom and misery ãle, chãotic, câre (7), ådd, account, ärm, åsk (11), sofá; ēve, here (18), event, end, silent, maker; ice, ill, charity; old, õbey, ôrb, odd (40), soft (41), connect; food, foot; out, oil; cūbe, unite, ûrn, up, circus, ü = u in Fr. menu; National Drug Control Strategy Budget Summary OFCHE THE 13/7) VISA DEIIT January 1990 The White House FEDERAL IMPLEMENTATION AND RESOURCE REQUIREMENTS As stated in the September 1989 National Drug Control Strategy, the Nation's drug control program is an integrated system. Changes made to one part of the system have an effect on other parts of the system. Enhanced law enforcement, for example, invariably leads to increased pressure on the courts and prisons. Increased attention on user accountability motivates people to stop their drug use and this leads to more demand for treatment. Emphasis applied to one part of the system increases pressure on another part. If we are to be successful in our fight against drug use, we must begin to see the drug control program as an integrated system that will be most effective when all aspects of it are receiving proper and balanced attention. The Anti-Drug Abuse Act of 1988 requires the Strategy to describe the balance of resources devoted to supply reduction and demand reduction activities. Often, law enforcement resources are viewed entirely as supply reduction in nature and only those resources that are directly spent on education or treatment activities are considered demand reduction. By this definition, the Strategy recommends a 1991 budget that is approximately 71 percent supply reduction and 29 percent demand reduction. This division is the same as the 1990 level. But a supply/demand distinction that looks only at the bottom line of the budget to determine whether our efforts are appropriately balanced between supply and demand reduction activities is too simplistic and overlooks three very important factors. First, supply reduction activities are inherently expensive (patrol cars, aircraft, and prisons are all very costly), whereas many demand reduction activities rely less on capital outlays and more on community involvement and individual commitment: getting schools to treat drug use seriously, for example, doesn't necessarily require a large budget. Second, many supply reduction activities are intrinsically government functions (international operations and high-seas interdiction, for example, can only be performed by the Federal government), whereas most demand reduction efforts can and should be shared by our families, schools, churches, and communities. Third, many supply activities also have a very profound impact on demand reduction, and are so intended. When, for example, a juvenile is arrested and punished for illegal drug use it sends a message to his friends and schoolmates that will deter them from drug use. Thus, while 71 percent of the budget's "bottom line" is for activities traditionally thought of as supply reduction, a large portion of this funding will have an impact on and is aimed at reducing demand. 1 This section presents the program and budget priorities for Fiscal Years 1991-1993. Further detail on the Fiscal Year 1991 request is contained in the following Agency Summaries. These resources are needed to implement the National Drug Control Strategy and provide balanced funding for the overall drug program. For Fiscal Year 1991, we are seeking $10.6 billion dollars in drug-related funding -- a $4.3 billion (69 percent) increase since taking office twelve months ago and a $1.1 billion (12 percent) increase over the current Fiscal Year. Actual spending -- the budget outlays -- for Fiscal Year 1991 will increase by $2.8 billion, a 41 percent increase in just one year. BUDGET AUTHORITY IN MILLIONS OF DOLLARS FY FY FY FY 90-91 1989 1990 1991 Increase $ % Criminal Justice $2,682 $4,191 $4,279 $ 88 2% Treatment 888 1,337 1,492 155 12 Education, Community Action & the Workplace 677 1,118 1,242 124 11 International Activities 304 419 690 271 65 Interdiction Efforts 1,467 2,029 2,373 344 17 Research 231 318 383 65 20 Intelligence 53 71 172 101 142 TOTAL $6,302 $9,483 $10,631 $1,148 12% The figures for Criminal Justice include the costs of Federal prison construction, which in FY 1990, totaled approximately $1 billion. Because prison construction costs do not recur in subsequent years, the true programmatic increase from 1990 to 1991 is actually $1 billion higher than the figures above would indicate. Adjusting for this, the FY 1990 to FY 1991 criminal justice increase equals 34 percent. 2 National Drug Control Strategy OF THE UNITED UNITED PRES 3HL STATES OF SEAL January 1990 The White House The Criminal Justice System Punishment The Death Penalty. Under existing Federal law, no penalty ade- quately reflects the severity of certain drug crimes, which threaten the stability of foreign nations and seriously imperil the national security interests of the United States. The Administration is therefore propos- ing legislation so that the death penalty would be available in cases involving three additional categories of drug offenders: 1) Major drug kingpins. Those currently subject to a mandatory term of life imprison- ment as leaders of Continuing Criminal Enterprises (CCE) devoted to the large-scale importation or distribution of controlled substances; 2) Drug kingpins who attempt to kill in order to obstruct justice. CCE leaders, not necessarily subject to mandatory life, who, in order to obstruct the investigation or prosecution of CCE-related offenses, at- tempt or knowingly direct, advise, authorize or assist another in an attempt to kill any public officer, juror, witness, or family member of such person; and 3) Federal drug felons whose offenses result in death. Those who, intending to cause death or acting with reckless disregard for human life, commit a Federal drug felony resulting in the death of another person. These three categories of offenders could be sentenced to death if: 1) the indictment is approved by the Attorney General; and 2) the jury finds the existence of one or more additional aggravating factors which provide particularly strong evidence of dangerousness, incorrigi- bility, or indifference to human life. Prisons. The proposals contained in the September 1989 National Strategy and President Bush's Violent Crime Initiative allocated $1.5 billion for Federal prison construction in 1990 - a sum that will add a total of 24,000 beds to the Federal prison system. Funding for an additional 6,000 beds is being sought in Fiscal Year 1991. During the same fiscal year, 14 new and renovated facilities, along with other prison expansion, will bring approximately 4,215 new beds on line in the Federal system where over half the prisoners are drug offenders. Funding for drug treatment services within the Federal prison system is also targeted for expansion. A more serious prison problem, however, remains in some State systems, where court orders to reduce overcrowding affect major facili- ties in at least 30 states. At many of these facilities, prisoners are released well ahead of the release dates intended at the time they were sentenced. The result is that someone convicted of drug trafficking and sentenced to prison by a State court will serve an estimated average of only 22 months - less time than for robbery, aggravated assault, or burglary (see graph page 24). Most States have responded aggressively by increasing annual expenditures on corrections. Census data show that spending in- creased by 63 percent between. 1985 and 1988 - from $54 to $88 per National Drug Control Strategy 23 BUILDING A BETTER AMERICA "We live in a peaceful, prosperous time, but we can make it better A new breeze is blowing, and a nation refreshed by freedom stands ready to push on. There is new ground to be broken, and new action to be taken." -- President Bush Inaugural Address January 20, 1989 December 11, 1989 December 11, 1989 BUILDING A BETTER AMERICA ACCOMPLISHMENTS OF THE BUSH ADMINISTRATION KEEPING THE ECONOMY STRONG Maintaining the current economic expansion with low inflation is the key to improving standards of living, increasing job opportunities for all Americans, and increasing investment in productive capacity. Economic performance during this expansion has been exceptionally good with extraordinary job growth. The policies of the Bush Administration are designed to preserve this strong record. Record Peacetime Expansion: The current expansion reached 84 months in November. This is the second longest economic expansion in U.S. history and the longest peacetime expansion. Job Creation: Over 20.7 million new jobs have been created during this expansion, and this year the unemployment rate has reached levels not seen in over 16 years. The benefits of robust economic growth have been shared by all demographic groups as indicated by historically low unemployment rates for women and minorities. During this decade, America has created more new jobs than Japan and the nations of Western Europe combined. A higher percentage of American adults is at work than at any other time in our history. Inflation Under Control: Consumer price inflation has remained under 5 percent in each of the seven years from 1982 to 1988, and the recent slowing in economic growth to a sustainable rate will lessen price pressures in the near future. In the last twelve months, the CPI has increased only 4.5 percent and, in the last three months, the index has risen at an annual rate of only 2.6 percent. Record Income: Real per capita disposable personal income -- personal income after taxes and inflation -- has risen 20 percent during this expansion. Higher National Saving and Investment: Partly due to the discipline of the Gramm-Rudman-Hollings process, the Federal deficit has declined from 6.3 percent of GNP in fiscal year 1983 to 3.0 percent in FY 1989. The personal savings rate averaged 5.3 percent over the first three quarters of 1989, well above its recent low of 3.2 percent in 1987. 0 New Business Incorporations: During the first nine months of 1989, 520,108 new corporations were formed. Ninety-eight percent of these new corporations are small businesses. At 2 the same time, business failures numbered just 37,820 -- a decline of 15.6 percent from the first nine months of 1988. o Improved International Trade Position: The international trade position of the United States has improved substantially. U.S. exports are at an all-time high and the trade deficit (as measured by exports minus imports) has been cut by 30 percent from its level in 1987. ACTION BY THE ADMINISTRATION: Implementing Fiscal Restraint: Throughout the year, the Administration negotiated with Congress to pass a fiscally responsible budget agreement that met the requirements of the Gramm-Rudman-Hollings law. As a result of the negotiations, a series of appropriations bills and a budget reconciliation bill were finally enacted which meet the deficit reduction targets with no new taxes. Enhanced Rescission Authority: On August 4, the President endorsed the Legislative Line-Item Act of 1989 (S.1553), providing the President with the enhanced rescission authority. Such authority will help the President reduce the federal deficit by allowing him to eliminate wasteful and unnecessary spending in appropriations bills. Capital Gains: In February, the President proposed a carefully designed reduction in the top capital gains tax rate. Taxpayers who held certain investments would be able to exclude 45 percent of any gain they received from taxation. The maximum effective rate would be reduced to 15 percent and families with incomes under $20,000 would be exempt from capital gains taxation. The President's proposal would promote risk taking and entrepreneurship thereby encouraging new businesses and small business which provide most of the new jobs to the American economy. The rate cut would also lower the cost of capital to American business and encourage a long-term focus for America's savers and investors. Majorities in both Houses of Congress are now on record in support of a capital gains tax rate reduction and its passage will be one of the Administration's top priorities when Congress reconvenes. Savings and Loan Reform: The President signed the Financial Institutions Reform, Recovery and Enforcement Act of 1989 on August 9. This legislation came to grips with the serious financial problems of the savings and loan industry, and has helped safeguard and stabilize America's system of thrift institutions. The President's plan, introduced in the first days of his Administration, assures that the long developing problems in our thrift industry will never happen again. It 14 New requirements for installation of explosive detection devices in high-risk airports. -- Intense international negotiations to enhance security abroad. -- Establishment of the President's Commission on Aviation Security and Terrorism. -- A proposed 17% increase in the budget for the Federal Aviation Administration. INVESTING IN OUR FUTURE Record economic growth has provided Americans with the opportunity to invest in a brighter future. The President's programs are designed to focus our efforts on those initiatives most likely to continue to create growth in the years ahead. EDUCATION The President pledged to provide national leadership in education reform and mobilize society to achieve literacy for all Americans. His actions to improve education are guided by four principles: encouraging excellence; targeting federal assistance to those most in need; promoting flexibility and choice; and ensuring accountability. ACTION BY THE ADMINISTRATION: O President Bush convened "The President's Education Summit with the Governors" on September 27 and 28 in Charlottesville, Virginia. This event marked only the third time in U.S. history that a President has convened the Nation's Governors to address a single issue of national importance. The Summit brought together the President, his Cabinet and the Governors in working groups and plenary sessions to focus on issues of choice and restructuring, teaching, the learning environment, governance, a competitive workforce and life-long learning, and postsecondary education. -- The President and the Governors issued a Joint Statement -- a "Jeffersonian Compact" -- committing to four objectives for education reform in America: establishing national education goals; increasing flexibility in the use of Federal funds in exchange for enhanced accountability; implementing state-by-state 15 restructuring of the education system; and measuring performance. A commitment was made to develop national goals and initiatives to increase flexibility and accountability by early 1990. On April 5, the President submitted to Congress a comprehensive set of education initiatives, The Educational Excellence Act of 1989. The Act proposes: -- The Presidential Merit Schools program -- to reward schools that are making substantial progress in raising students' educational achievement, creating a safe and drug-free school environment, and reducing the drop-out rate. -- A new Magnet Schools of Excellence program -- to support the establishment, expansion or enhancement of magnet schools, focusing on disciplines important to the Nation's economic competitiveness such as math and science, increasing parental choice and improving quality education. -- The Alternative Certification of Teachers and Principals program -- to assist States interested in broadening the pool of talent from which to recruit teachers and principals. : President's Awards for Excellence in Education -- to recognize public and private school teachers in every state who meet the highest standards of excellence. : Drug-free Schools Urban Emergency Grants -- to provide special assistance to selected urban school districts that are disproportionately affected by drug trafficking and abuse. : A National Science Scholars program -- to provide college scholarships to high school seniors who have excelled in the sciences and mathematics. : Additional Funding Authorization for Endowment Matching Grants at Historically Black Colleges and Universities (HBCUs) -- to strengthen HBCUs by building endowments, an especially effective way to create financial strength and long-term security. On April 24, the President issued a new Executive Order on Historically Black Colleges and Universities. Highlights of the order include: 27 resident ownership and resident management of low income housing. -- Job Creation: He has also called on Congress to create up to 50 Enterprise Zones over the next four years, using labor and capital-based incentives to create jobs and entrepreneurial activity in our most distressed communities. In the hardest-hit urban areas, he has called for a complete elimination of the capital gains tax on certain investments in enterprise zones. FHA Reforms: The Administration has announced major reforms to ensure that FHA is true to its primary mission of making housing affordable for low and moderate income families. In record time, Congress responded to the Administration's reform initiative and passed legislation incorporating most of the Administration's proposals. The President charged HUD with finding new ways to move FHA foreclosures into the hands of non-profit groups to help reduce homelessness to fight inner city poverty. Homelessness: The President requested full funding of the McKinney Homeless Assistance Act; and, on November 9, signed a bill that substantially increased funding for programs under the Act. As part of the HOPE initiative, the President will request $236 million for an initiative to reduce homelessness among the chronically mentally ill and recovering substance abusers through public-private partnerships. HEAD START The President also challenged Congress to increase funding for Head Start by $250 million in FY 1990. This expansion would have enabled up to 95,000 more four-year-olds to participate in the program. Congressional action provided only $151 million of that request which will allow the Program to serve up to 37,500 more eligible 4-year-olds. CHILD CARE The changing nature of American society heightens the need for child care that suits both children's needs and families' circumstances. President Bush wants to put choice in the hands of parents so that they -- not government -- have the power to select the best and safest environment for their children. 28 ACTION BY THE ADMINISTRATION: o Child Care: The President transmitted to Congress a child care package, the Working Family Child Care Assistance Act of 1989 which: : Provides a new refundable child care tax credit of up to $1000 per child under age four, for low and moderate income working families. -- Makes the existing Dependent Care Tax Credit refundable. -- Does not discriminate against religious- or family- based child care, or against two-parent families in which a parent works in the home and cares for the, children. Liability Insurance: The President has directed Secretary of Labor Dole to examine the role played by liability insurance in employer decisions on employer-provided child care. EXPANSION OF MEDICAID The President is committed to ensuring quality health care for disadvantaged mothers and children, the disabled, and poor, aged Americans. To help achieve this goal, Federal spending on Medicaid will be $39.1 billion for FY 1990, an increase of $4.3 billion, or 12.3 percent over the FY 1989 level. ACTION BY THE ADMINISTRATION: Infant Mortality: President Bush has taken concrete steps toward improving health care for at-risk populations and toward decreasing infant mortality. This year, he asked Congress to raise mandatory Medicaid eligibility for pregnant women, infants and children to 130 percent of the poverty level. Congress took action to raise the eligibility to 133% -- consistent with the President's proposal. In addition, he requested an expansion of Medicaid coverage of immunizations for all children under age 6 who are eligible for Food Stamps. AIDS INITIATIVES The President has made combatting AIDS a national priority. The Administration is moving on a number of fronts in its fight against the spread of AIDS. 21 bringing the total FY 1990 budget to over $1.5 billion. This will add 24,000 new Federal prison beds to the 32,000 beds currently available. Each of the above proposals for increased funding to fight violent crime was addressed in the appropriations bills for drug- related activities passed by Congress at the close of the first session and signed by the President on November 21. THE ENVIRONMENT AND ENERGY President Bush, a life-long environmentalist, has taken strong action to protect the environment. He has placed environmental protection, conservation, and wise management of our natural resources as high priorities on America's national agenda. ACTION BY THE ADMINISTRATION: Clean Air Legislation: On June 12, the President announced proposals that will take advantage of the power of the marketplace to reduce emissions which cause acid rain, urban smog and toxic air pollution. The proposals, the first major overhaul of the Clean Air Act to be proposed by an Administration in over a decade, call for a 10 million ton reduction in SO2 emissions by the year 2000, a 2 million ton reduction in NOx from projected levels, a 40 percent reduction in emission of volatile organic compounds, and a reduction of 75 to 90 percent in air toxic emissions. The proposal also calls for the use of alternative fuels in one million vehicles by 1997. Alternative fuels, while reducing emissions that cause smog, will also reduce the toxic aromatics which come from conventional gasoline. The President submitted a comprehensive Clean Air bill to the Congress on July 21 embodying the proposals announced on June 12. Clean Coal Technologies: The President proposed $710 million in FY 1990 for the Clean Coal Technology program. Asbestos Ban: On July 7, EPA announced an almost total phase-out of nearly all uses of asbestos by 1997. The ban will prohibit importation, manufacture, and processing of asbestos, a carcinogen linked to lung cancer and mesothelioma (lung and chest cancer). Clean Water and Coastlines: On March 10, EPA implemented a medical waste tracking program to track medical wastes to ensure proper disposal and prevent ocean pollution -- a 22 major step forward in a comprehensive program to help keep our beaches clean. Ocean Dumping: To meet the President's commitment to end ocean dumping, the EPA negotiated agreements with local jurisdictions to stop dumping of sewage sludge by the end of 1991. This initiative also resulted in civil judicial or administrative penalty actions against 61 cities in 1989. Cleanup of Hazardous Wastes: On March 10, The President announced he will be seeking legislation to amend the Resource Conservation and Recovery Act in order to give the United States Government authority to ban all exports of hazardous waste unless an agreement exists with the receiving country providing for the safe handling and management of those wastes. Department of Energy Facilities Cleanup: Spending has been increased by $500 million for waste cleanup at Department of Energy facilities. On August 31, the Energy Department published an aggressive, five-year cleanup plan which identifies site-by-site Departmental environmental restoration and waste management initiatives. In addition, the Department published a five-year Environmental Restoration and Waste Management Research and Development Plan which will exclusively focus its attention on addressing the contamination problems the Energy Department faces at its facilities. The Research and Development Plan will be the major effort to reduce outyear costs of cleanup of DOE facilities and should have major implications for private technology transfer. Superfund: The President's budget proposed $1.75 billion to pursue an aggressive cleanup schedule of toxic waste sites; the Administration opposed Congressional efforts to cut the Superfund budget to $1.5 billion. On June 14, EPA Administrator Reilly, following the President's direction, concluded a Management Review of the Superfund Program. To implement reforms, E.P.A. is adding five hundred people to take aggressive enforcement action and ensure that sites are cleaned up. Alaskan oil Spill: The President sent a Cabinet-level team to assess the Alaskan oil spill, and a joint federal-state resource recovery team was convened. Vice President Quayle twice visited the cleanup site and met with local officials and affected businessmen. The National Transportation Safety Board is investigating the accident. Exxon has accepted the responsibility of paying for the cleanup, and for employing local civilian personnel necessary to control further damage. The Department of Transportation is heading the Administration's cleanup efforts while the EPA is 1/5/90 Table 1. Changes in seasonally adjusted Item Nov. Dec. Change 1982 1989 (nonferm, 88,071 109,535 Household employment. (civilian) 99,112 117,888 18,776 Including resident armed Forces 100,772 119,588 18,816 Less: Agriculture 3,510 3,197 -313 Nonagricultural self-employed 7,320 8,653 1,333 Nonagricultural unpaid family workers 363 251 -112 Private household workers 1,245 1,077 -168 Unpaid absences 2,003 2,561 558 Total 14,441 15,739 1,298 Plus: Agricultural services 445 661 216 Adjusted household employment 85,116 102,810 17,694 Total unemp rate 10.6 5.3 -5.3 Civilian whemp rate 10.8 5,3- -5.5 NOTE: The change column does not reflect the population adjustments introduced into the household survey in January 1986. Table 2. Over-the-year changes in employment, not seasonally adjusted Item Dec. Dec. Change 1988 1989 Payroll jobs 107,917 110,379 2,462 Household employment 115,978 117,698 1,720 Less: Agriculture 2,870 2,862 -8 Nonagricultural self-employed 8,612 8,679 67 Nonagricultural unpaid family workers 264 237 -27 Private household workers 1,173 1,051 -122 Unpaid absences 1,584 1,871 287 Total 14,503 14,700 197 Plus: Agricultural services 509 566 57 Adjusted household employment 101,984 103,564 1,580 ER 90 TABLE B-32.-Population and the labor force. 1929-88 [Monthly data seasonally adjusted. except as noted) Civilian labor force Labor Employ- Civil- Civil- Civilian Resi- force ment ian Employment ian noninsti- Year or month tutional dent includ- includ- labor em- ing ing Un- force ploy- Armed popula- Forces resident resident em- ment/ Total Agri- Non- par- Year or month tion Armed Armed Total cul- agri- ploy- tici- pop- Forces Forces tural cultural ment ula- pation tion rate* ratio Thousands of persons 14 years of age and over Percent 1929 49.180 47,630 1933 10,450 37.180 1.550 3.2 51.590 1939 38,760 10,090 28,670 12,830 24.9 1985: Jan 55,230 45,750 9,610 36,140 9,480 Feb 17.2 1940 55,640 47,520 1 Mar 99.840 1941 9,540 99.900 37,980 8,120 14.6 55.7 47.6 Apr 55,910 50,350 1942 9,100 41,250 98,640 5,560 9.9 56.0 50.4 May 56,410 1943 53,750 9,250 44,500 94,640 2,660 4.7 57.2 54.5 June 55.540 54,470 1944 9,080 45,390 93.220 1,070 1.9 58.7 57.6 54,630 53,960 8,950 45,010 670 1.2 58.6 July 57.9 1945 94,090 Aug 53,860 1946 52,820 8,580 44,240 103.070 1,040 1.9 57.2 57,520 56.1 Sept 55,250 1947 8,320 106,018 46,930 2,270 3.9 55.8 53.6 Oct 60,168 57,812 8,256 49,557 2,356 3.9 56.8 54.5 Nov Dec Thousands of persons 16 years of age and over 1986: Jan 1947 101.827 59,350 Feb 57,038 1948 7,890 103.068 49,148 2,311 3.9 58.3 60,621 56.0 Mar 58,343 1949 7,629 50,714 103.994 2,276 3.8 58.8 56.6 61.286 Apr 57,651 7,658 49,993 3,637 5.9 58.9 55.4 May 1950 104.995 1.169 63.377 60,087 62,208 58,918 1951 7,160 51,758 104.621 3,288 2,143 5.2 5.3 June 64,160 62,104 59.2 56.1 62,017 1952 59,961 6,726 105.231 53,235 2,386 2,055 64,524 3.2 3.3 62,636 59.2 62,138 57.3 1953 60,250 July 6,500 107.056 53,749 2,231 1,883 65,246 2.9 3.0 63,410 59.0 57.3 63,015 61,179 6,260 Aug 1954 108.321 54,919 2,142 1.834 65,785 2.8 2.9 62,251 58.9 63,643 57.1 Sept 1955 60,109 6,205 53,904 109.683 2.064 3,532 67.087 5.4 5.5 58.8 64,234 55.5 65,023 Oct 62,170 1956 6,450 110.954 55,722 1.965 2,852 68,517 4.3 4.4 65,764 59.3 66,552 56.7 63,799 Nov 1957 6,283 112,265 57,514 1,948 2.750 68,877 4.0 66,019 4.1 60.0 66,929 57.5 1958 64,071 Dec 5,947 58,123 113,727 1,847 2,859 4.2 69,486 4.3 64,883 59.6 67,639 57.1 63,036 1959 5,586 115,329 57,450 1,788 4,602 70,157 6.6 6.8 59.5 66,418 68,369 55.4 1987: Jan 64,630 5,565 59.065 3,740 5.3 5.5 59.3 56.0 Feb 1960 117.245 1,861 71,489 67,639 69,628 65,778 Mar 1961 5,458 118.771 60,318 3,852 1,900 72,359 5.4 5.5 67,646 59.4 70,459 56.1 1962 65,746 Apr 5,200 120.153 60,546 2.061 4,714 72.675 6.5 6.7 68,763 59.3 70,614 55.4 66,702 4,944 May 1963 61.759 122,416 2.006 3,911 73,839 5.4 5.5 69,768 58.8 71.833 55.5 67,762 June 1964 4,687 63,076 124,485 4,070 2.018 75,109 5.5 71,323 5.7 58.7 73,091 55.4 69,305 1965 4,523 126,513 64,782 1.946 3,786 76,401 5.0 5.2 73,034 58.7 55.7 July 74,455 1966 71,088 4,361 66.726 128,058 3,366 2.122 77.892 4.4 4.5 75,017 58.9 56.2 Aug 75,770 72,895 1967 3,979 129,874 68,915 2,875 2.218 79,565 3.7 3.8 76,590 59.2 77.347 56.9 Sept 74,372 1968 3,844 132,028 70,527 2.253 2,975 3.7 80,990 3.8 78,173 59.6 57.3 Oc: 78,737 1969 75,920 3,817 72,103 134.335 2,238 2,817 82,972 3.5 3.6 80,140 59.6 57.5 Nov 80,734 77,902 3,606 74,296 2,832 3.4 3.5 60.1 58.0 Dec 1970 137,085 2.118 84,889 80,796 82,771 1971 78,678 3,463 75,215 140,216 4,093 1,973 86.355 4.8 4.9 60.4 57.4 1 1988: Jan 81,340 84,382 1972° 79,367 3,394 144,126 75,972 5,016 1,813 88.847 5.8 5.9 83,966 60.2 56.6 FED 87.034 1973 82,153 3,484 147,996 78,669 1224 4,882 5.5 5.6 60.4 89,429 57.0 Mar 86,838 85,064 1974 3,470 150.120 01:504 1,721 4,365 93,670 88,515 91.949 1 60.8 57.8 Apr 86,794 1975 3,515 153,153 83,279 1.678 95.453 5,156 5.5 87,524 5.6 93,775 61.3 57.8 May 1976 85,846 3,408 156.150 82,438 7,929 1.668 97,826 8.3 90,420 8.5 61.2 56.1 June 96,158 1977 88,752 3,331 159,033 85,421 1,656 7,406 100.665 7.6 7.7 93,673 61.6 99,009 56.8 1978 92,017 3,283 161.910 88,734 1.631 6,991 6.9 103,882 97,679 7.1 62.3 102,251 57.9 July 1979 96,048 3.387 164,863 92,661 6.202 1,597 106,559 6.0 100.421 6.1 63.2 59.3 Aug 104,962 98,824 3,347 95,477 6,137 5.8 5.8 Sept 63.7 59.9 1980 167,745 Oct 1,604 108,544 100,907 106,940 1981 99,303 3,364 95,938 170,130 1.645 7,637 110,315 7.0 7.1 102,042 63.8 108,670 59.2 Nov 1982 100,397 3,368 172.271 97,030 8,273 1.668 7.5 111.872 7.6 101.194 63.9 110,204 59.0 1983 99,526 3,401 174.215 96,125 10,678 1.676 113.226 9.5 102,510 9.7 64.0 57.8 111,550 1984 100,834 Not seasona 3,383 176,383 97,450 1.697 10,717 115.241 9.5 106,702 9.6 64.0 113,544 57.9 1985 105,005 3,321 101,685 2 Unemployed 178,206 8,539 1,706 117.167 7.4 108.856 7.5 64.4 115,461 59.5 1986 6 107,150 3,179 103,971 3 Unemployed 180,587 8,312 1.706 7.1 119,540 111,303 7.2 64.8 117,834 60.1 1987 109,597 3,163 4 Civilian labo 182,753 106,434 8,237 1,737 121,602 6.9 7.0 114,177 65.3 119,865 60.7 112,440 3,208 5 Civilian emp 109,232 7,425 6.1 6.2 65.6 61.5 1984 Jan 6 Not strictly 175,533 1,686 113.899 104,883 112.213 103,197 3,296 99.901 9,016 7.9 8.0 data added abov Feb 175.679 1,684 114,314 105,511 63.9 112,630 58.8 103,827 Mar 175.824 3,354 100,473 8,803 1,686 7.7 7.8 inclusion of Alas 114,397 105,659 112,711 64.1 103,973 59.1 Apr 3,234 -175.969 100,739 8,738 1,693 7.6 114,822 106,058 7.8 64.1 59.1 Beginning 1962. 113,129 104,365 May 3,309 176,123 101,056 8,764 1.690 115,310 7.6 106,849 7.7 64.3 59.3 Beginning 1972 113,620 105,159 3,319 -101,840 8,461 7.3 7.4 64.5 force and emplo June 176,284 1.690 115,521 107,300 113,831 59.7 105,610 3,377 102,233 8,221 7.1 7.2 64.6 59.9 Beginning 1978 July 176,440 force and to en 1.698 115,645 107,127 113,947 105,429 Aug 3,340 176,583 102,089 8,518 1,712 115.404 7.4 106,879 7.5 64.6 113,692 59.8 population conti 105,167 Sept 3,295 176,763 101,872 1.720 8,525 115,556 7.4 107,198 7.5 64.4 59.6 levels and rates 113,836 Oct 105,478 176.956 3,388 102,090 1.705 8,358 115,720 7.2 107,339 7.3 64.4 114,015 59.7 105,634 Note.-Labor Nov 177.135 3,195 102,439 8,381 1.699 115.884 7.2 7.4 107,684 64.4 114,185 59.7 Dec 105,985 the 12th of the 177,306 3,400 102.585 1.698 8,200 116,268 7.1 107,910 7.2 114,570 64.5 59.8 106,212 3,387 102.825 etc., see "Emplo 8,358 7.2 7.3 64.6 59.9 Source: Depar See next page for continuation of table 73 1/16/90 Producer Consumer year % chg Tec to Dec 1980 11.8 12.5. 81 7.1 8.9. 82 3.6 3.8. 83 .6 . 3.8. 84 1.7 3.9 1985 1.8. 3.8 86 -2.3. 111 87 2.2. 4.4. 88 4.0 4.4 89 4.8 11 4.6 !! Dec 1988 to nov 1989 at Dears. any annual rate 1/3/90 3-month High- Mortgage Dis- CoΓpo- U.S. Treasury constant grade Dow-Jones commit- Period Federal count Prime Commer- CDs Treas. rate maturities muni- indus- ment funds rate rate cial (sec- bills, Aaa cipal trials rate 1/ FRB-NY 2/ paper ondary market bonds 3 year 10 year 30 year bonds (Level) (FHLMC) 2/ 3/ mkt) yld 3/ (Moody's) (S&P) 41 5/ Jan 6.83 6.00-6.00 8.75-8.75 6.87 6.92 5.81 9.88 7.87 8.67 8.83 7.81 1,947.35 10.43 Feb 6.58 6.00-6.00 8.75-8.50 6.58 6.60 5.66 9.40 7.38 8.21 8.43 7.55 1,980.65 9.89 Mar 6.58 6.00-6.00 8.50-8.50 6.62 6.63 5.70 9.39 7.50 8.37 8.63 7.80 2,044.31 9.93 Apr 6.87 6.00-6.00 8.50-8.50 6.86 6.92 5.91 9.67 7.83 8.72 8.95 7.91 2,036.13 10.20 May 7.09 6.00-6.00 8.50-9.00 7.19 7.24 6.26 9.90 8.24 9.09 9.23 8.01 1,988.91 10.46 June 7.51 6.00-6.00 9.00-9.00 7.49 7.51 6.46 9.86 8.22 8.92 9.00 7.86 2,104.94 10.46 July 7.75 6.00-6.00 9.00-9.50 7.82 7.94 6.73 9.96 8.44 9.06 9.14 7.87 2,104.22 10.43 Aug 8.01 6.00-6.50 9.50-10.00 8.26 8.35 7.06 10.11 8.77 9.26 9.32 7.86 2,051.29 10.60 Sept 8.19 6.50-6.50 10.00-10.00 8.17 8.23 7.24 9.82 8.57 8.98 9.06 7.71 2,080.06 10.48 Oct 8.30 6.50-6.50 10.00-10.00 8.24 8.36 7.35 9.51 8.43 8.80 8.89 7.54 2,144.31 10.30 Nov 8.35 6.50-6.50 10.00-10.50 8.66 8.78 7.76 9.45 8.72 8.96 9.02 7.58 2,099.04 10.27 Dec 8.76 6.50-6.50 10.50-10.50 9.11 9.25 8.07 9.57 9.11 9.11 9.01 7.66 2,148.58 10.61 198. Jan 9.12 6.50-6.50 10.50-10.50 9.04 9.20 8.27 9.62 9.20 9.09 8.93 7.41 2,234.68 10.73 Feb 9.36 6.50-7.00 10.50-11.50 9.37 9.51 8.53 9.64 9.32 9.17 9.01 7.47 2,304.30 10.65 Mar 9.85 7.00-7.00 11.50-11.50 9.95 10.09 8.82 9.80 9.61 9.36 9.17 7.61 2,283.11 11.03 Apr 9.84 7.00-7.00 11.50-11.50 9.81 9.94 8.65 9.79 9.40 9.18 9.03 7.49 2,348.91 11.05 May 9.81 7.00-7.00 11.50-11.50 9.47 9.59 8.43 9.57 8.98 8.86 8.83 7.25 2,439.55 10.77 June 9.53 7.00-7.00 11.50-11.00 9.11 9.20 8.15 9.10 8.37 8.28 8.27 6.97 2,494.90 10.20 July 9.24 7.00-7.00 11.00-10.50 8.68 8.76 7.88 8.93 7.83 8.02 8.08 6.97 2,554.03 9.88 Aug 8.99 7.00-7.00 10.50-10.50 8.57 8.64 7.90 8.96 8.13 8.11 8.12 7.08 2,691.11 9.99 Sept 9.02 7.00-7.00 10.50-10.50 8.70 8.78 7.75 9.01 8.26 8.19 8.15 7.27 2,693.41 10.13 Oct 8.84 7.00-7.00 10.50-10.50 8.53 8.60 7.64 8.92 8.02 8.01 8.00 7.22 2,692.01 9.95 Nov 8.55 7.00-7.00 10.50-10.50 8.35 8.39 7.69 8.89 7.80 7.87 7.90 7.13 2,642.49 9.77 Dec 8.45- 7.00-7.00 10.50-10.50 8.29 8.32 7.63 8.86 7.77. 7.84 7.90 7.01 2,728.47 9.74 1/ Average effective rate. 2/ Opening and closing rate for month. 3/ Bank-discount basis. 4/ Data are for Wednesday. 5/ Commitment rate on 80 percent, 30-year, fixed rate conventional mortgages on new and used homes. cc one sec 1989 issue DISPOSITION OF PERSONAL INCOME Real per capita disposable personal income rose in the third quarter of 1989. BILLIONS OF DOLLARS (RATIO SCALE) BILLIONS OF DOLLARS (RATIO SCALE) 4,000 4,000 3,800 3,800 2 3,400 3,400 DISPOSABLE PERSONAL INCOME 3,000 3,000 2,600 2,600 PERSONAL OUTLAYS 2,200 SAVING 2,200 1,800 1,800 1,400 1,400 DOLLARS * (RATIO SCALE) DOLLARS . (RATIO SCALE) 16,000 16,000 PER CAPITA DISPOSABLE PERSONAL INCOME 14,000 CURRENT DOLLARS 14,000 12,000 12,000 10,000 10,000 1982 DOLLARS 8,000 8,000 6,000 6,000 1981 1982 1983 1984 1985 1986 1987 1988 1989 SEASONALLY ADJUSTED ANNUAL RATES COUNCIL OF ECONOMIC ADVISERS SOURCE: DEPARTMENT OF COMMERCE Dispos- Per capita personal Percent Population. Less: Equals: able consumption change in Saving as including Personal Personal Less: Disposable Equals: personal expenditures real per percent of Armed Period tax and income Personal Personal income in personal capita dispozable Forces nontax outlays 1 income saving 1982 Current Current 1982 disposable personal abroad payments dollars dollars dollars personal income (thou- dollars (billions) income sands) 3 Billions of dollars Dollars Percent 1980 2,258.5 340.5 1,918.0 1,781.1 136.9 2,214.3 8,421 7,607 8,783 -1.1 7.1 227,754 1981 2,520.9 393.3 2,127.6 1,968.1 159.4 2,248.6 9,243 8,320 8,794 .5 7.5 230,182 1982 2,670.8 409.3 2,261.4 2,107.5 153.9 2,261.5 9,724 8,818 8,818 -.5 6.8 232,549 1983 2,838.6 410.5 2,428.1 2,297.4 130.6 2,331.9 10,340 9,515 9,139 2.1 5.4 234,829 1984 3,108.7 440.2 2,668.6 2,504.5 164.1 2,469.8 11,257 10,253 9,489 4.9 6.1 237,051 1985 3,325.3 486.6 2,838.7 2,713.3 125.4 2,542.8 11,861 10,985 9,839 2.0 4.4 239,322 1986 3,526.2 512.9 3,013.3 2,888.5 124.9 2,635.3 12,469 11,576 10,123 2.6 4.1 241,660 1987 3,777.6 571.7 3,205.9 3,104.1 101.8 2,676.6 13,140 12,340 10,303 .6 3.2 243,985 1988 4,064.5 586.6 3,477.8 3,333.1 144.7 2,793.2 14.116 13,131 10,546 3.3 4.2 246,378 1/16/90 1989 at annual of 1st rate av Beasonally adjusted annual rates 11,655. 1982: IV 2,729.2 411.1 2,318.1 2,174.9 143.1 2,276.1 9,929 9,749 9,068 8,904 1.2 6.2 233,466 1983: IV 2,941.8 413.9 2,527.9 2,382.5 145.4 2,392.7 10,725 10,151 9,825 9,299 9.1 5.8 235,707 1984: IV 3,188.3 459.7 2,728.6 2,571.3 157.3 2,496.3 11,467 10,491 10,479 9,587 1.7 5.8 237,946 1985: IV 3,399.1 499.6 2,899.5 2,787.7 111.7 2,562.8 12,068 10,667 11,240 9,935 3.3 3.9 240,257 1986: IV 3,597.8 534.4 3,063.4 2,961.4 102.0 2,646.2 12,629 10,909 11,825 10,214 .3 3.3 242,579 1987: IV 3,908.7 589.2 3,319.4 3,177.6 141.8 2,726.2 13,552 11,130 12,588 10,339 6.6 4.3 244,936 1988: I 3,948.5 572.2 3,376.4 3,244.4 131.9 2,757.2 13,754 11,232 12,824 10,473 3.7 3.9 245,476 II 4,026.6 590.7 3,435.9 3,301.9 134.0 2,773.3 13,966 11,273 13,028 10,515 1.5 3.9 246,008 III 4,097.6 585.9 3,511.7 3,362.1 149.6 2,806.4 14,235 11,377 13,229 10,573 3.7 4.3 246,685 IV 4,185.2 597.8 3,587.4 3,424.0 163.4 2,835.9 14,504 11,466 13,439 10,624 3.2 4.6 247,343 1989: I 4,317.8 628.3 3,689.5 3,483.8 205.7 2,881.7 14,884 11,625 13,641 10,654 5.7 5.6 247,890 II 4,400.3 652.6 3,747.7 3,547.0 200.7 2,887.6 15,084 11,622 13,862 10,681 -.1 5.4 248,456 III' 4,455.9 649.1 3,806.8 3,611.7 195.1 2,919.2 15,280 11,717 14,081 10,797 3.3 5.1 249,143 1 Includes personal consumption expenditures, interest paid by consumers to business. and person- Source: Department of Commerce (Bureau of Economic Analysis and Bureau of the Census). al transier payments to foreigners (net). 1 Annual data are averages of quarterly data, which are averages for the period. 6 September 1989 SURVEY OF CURRENT BUSINESS 55 Many Personal consumption expenditures Net exports Government purchases of Percent change from goods and services Gross preceding period Final domestic Gross Year and GNP Nondur- Duruble Nonresi- Residen- State sales pur- quarter Total able Services TOTAL CBI Net Exports Imports Final domestic dential tial Total Federal and chases GNP goods sales pur- goods local chases A 1929 709.6 471.4 40.3 211.4 219.7 1392 93.0 35.4 10.8 4.7 42.1 37.4 94.2 18.3 75.9 698.7 704.9 at 203.1 204.8 975 76.9 21.5 -.9 2.3 35.6 33.3 103.3 20.6 82.7 643.6 640.5 -9.4 -7.9 -9.1 1930 642.8 439.7 31.9 588.1 422.1 27.5 201.7 193.0 60.2 49.4 17.9 -7.1 -1.0 29.3 30.4 106.8 21.2 85.6 595.2 589.1 -8.5 -7.5 -8.0 1931 187.0 176.9 226 29.6 9.4 -16.4 -.5 23.2 23.7 102.2 21.9 80.3 525.6 509.7 -13.4 -11.7 -13.5 1932 509.2 384.9 21.0 498.5 378.7 20.7 181.8 176.2 #22,7 25.8 7.7 -10.7 -1.4 22.7 24.2 98.5 27.0 71.5 509.2 499.9 -2.1 -3.1 -1.9 1933 192.4 174.7 3513 32.4 10.5 -7.6 .1 24.7 24.6 110.7 34.7 76.1 544.3 536.5 7.7 6.9 7.3 1934 536.7 390.5 23.4 580.2 412.1 28.9 201.5 181.7 609 40.0 14.7 6.2 -5.9 26.6 32.5 113.0 34.1 79.0 574.0 586.1 8.1 5.5 9.2 1935 224.3 191.4 $2.1 54.4 18.7 9.0 -4.2 28,4 32.5 132.5 53.6 78.9 653.1 666.3 14.1 13.8 13.7 1936 662.2 451.6 35.9 695.3 467.9 37.7 232.8 197.4 9919 65.5 20.2 14.1 -.3 35.7 35.9 127.8 48.9 79.0 681.2 695.6 5.0 4.3 4.4 1937 235.4 191.3 6351 48.8 20.4 -6.0 6.0 34.1 28.1 137.9 55.0 82.9 670.2 658.2 -4.5 -1.6 -5.4 1938 664.2 457.1 30.4 716.6 480.5 35.7 248.0 196.7 $6.0 53.2 28.9 3.9 6.1 36.2 30.1 144.1 53.8 90.3 712.7 710.5 7.9 6.3 7.9 1939 259.4 202.7 11111 65.0 32.5 14.4 8.2 40.0 31.7 150.2 63.6 86.6 758.5 764.6 7.8 6.4 7.6 1940 772.9 502.6 40,6 909.4 531.1 46,2 275.6 209.3 138.8 76.6 34.4 27.8 3.9 42.0 38.2 235.6 153.0 82.6 881.6 905.5 17.7 16.2 18.4 1941 279.1 217.2 767 47.4 17.3 12.0 -7.7 29.1 36.9 483.7 407.1 76.7 1,068.3 1,088.0 18.8 21.2 20.1 1942 1,080.3 527.6 31.3 1,276.2 539.9 28.1 284.7 227.2 50.4 39.4 10.4 .7 -23.0 25.1 48.0 708.9 638.1 70.8 1,275.5 1,299.2 18.1 19.4 19.4 1943 297.9 232.9 56.4 52.6 9.0 -5.2 -23.8 27.3 51.1 790.8 722.5 68.3 1,385.7 1,404.3 8.2 8.6 8.1 1944 1,380.6 557.1 26.3 163 1,354.8 592.7 28.7 323.5 240.5 76.5 74.2 10.7 -8.4 -18.9 35.2 54.1 704.5 634.0 70.5 1,363.3 1,373.7 -1.9 -1.6 -2.2 1945 262.9 178.1 105.5 44.7 27.9 27.0 69.0 42.0 236.9 159.3 77.6 1,069.0 1,069.9 -19.0 -21.6 -22.1 1946 1,096.9 655.0 47.8 344.2 1,066.7 666.6 56.5 337.4 272.6 177.9 121.7 57.2 -1.0 42.4 82.3 39.9 179.8 91.9 87.9 1,067.7 1,024.3 -2.8 -.1 -4.3 1947 281.4 208.2 127.4 68.6 12.3 19.2 66.2 47.1 199.5 106.1 93.4 1,096.4 1,089.5 3.9 2.7 6.4 1948 1,108.7 681.8 61.7 338.7 1,109.0 695.4 67.8 342.3 285.3 1688 114.8 63.6 -9.7 18.8 65.0 46.2 226.0 119.5 106.5 1,118.7 1,090.2 0 2.0 .1 1949 299.8 234.9 124.0 86.7 24.2 4.7 59.2 54.6 230.8 116.7 114.2 1,179.5 1,199.0 8.5 5.4 10.0 1950 1,203.7 733.2 80.7 352.8 1,328.2 748.7 74.7 362.9 311.1 2352 131.7 72.6 30.8 14.6 72.0 57.4 329.7 214.4 115.4 1,297.4 1,313.6 10.3 10.0 9.6 1951 321.9 2118 130.6 71.2 10.0 6.9 70.1 63.3 389.9 272.7 117.3 1,370.0 1,373.1 3.9 5.6 4.5 1952 1,380.0 771.4 73.0 376.6 1,435.3 802.5 80.2 388.2 334.1 2164 140.1 73.8 2.8 -2.7 66.9 69.7 419.0 295.9 123.1 1,432.5 1,438.0 4.0 4.6 4.7 1953 347.4 212.6 137.5 79.8 -4.8 2.5 70.0 67.5 378.4 245.0 133.4 1,421.0 1,413.7 -1.3 -.8 -1.7 1954 1,416.2 822.7 81.5 393.8 you 1,494.9 873.8 96.9 413.2 363.6 239.8 151.0 92.4 16.3 0 76.9 76.9 361.3 217.9 143.4 1,478.6 1,494.9 5.6 4.1 5.7 1955 257 $ 160.4 84.4 12.9 4.3 87.9 83.6 363.7 215.4 148.3 1,512.7 1,521.3 2.1 2.3 1.8 1956 1,525.6 899.8 92.8 426.9 380.1 1957 1,551.1 919.7 92.4 434.7 392.6 143.4 161.1 79.3 3.0 7.0 94.9 87.9 381.1 224.1 157.0 1,548.1 1,544.2 1.7 2.3 1.5 221.4 143.9 81.0 -3.4 -10.3 82.4 92.8 395.3 224.9 170.4 1,542.6 1,549.6 -.8 -.4 .4 1958 1,539.2 932.9 86.9 439.9 406.1 1959 1,629.1 979.4 96.9 455.8 426.7 27015 153.6 100.2 16.5 -18.2 83.7 101.9 397.7 221.5 176.2 1,612.6 1,647.3 5.8 4.5 6.3 2605 159.4 93.3 7.7 -4.0 98.4 102.4 403.7 220.6 183.1 1,657.5 1,669.3 2.2 2.8 1.3 1960 1,665.3 1,005.1 98.0 463.3 443.9 1961 1,708.7 1,025.2 93.6 470.1 461.4 25911 158.2 93.6 7.3 -2.7 100.7 103.3 427.1 232.9 194.2 1,701.4 1,711.3 2.6 2.6 2.5 288.6 170.2 102.2 16.2 -7.5 106.9 114.4 449.4 249.3 200.1 1,783.3 1,807.0 5.3 4.8 5.6 1962 1,799.4 1,069.0 103.0 484.2 481.8 1963 1,873.3 1,108.4 111.8 494.3 502.3 307.1 176.6 113.9 16.6 -1.9 114.7 116.6 459.8 247.8 212.0 1,856.7 1,875.3 4.1 4.1 3.8 325.0 194.9 115.3 15.7 5.9 128.8 122.8 470.8 244.2 226.6 1,957.6 1,967.3 5.3 5.4 4.9 1964 1,973.3 1,170.6 120.8 517.5 532.3 Fort 1965 2,087.6 1,236.4 134.6 543.2 558.5 367.0 227.6 114.2 25.2 -2.7 132.0 134.7 487.0 244.4 242.5 2,062.4 2,090.3 5.8 5.4 6.3 250.4 103.2 36.9 -13.7 138.4 152.1 532.6 273.8 258.8 2,171.5 2,222.1 5.8 5.3 6.3 1966 2,208.3 1,298.9 144.4 569.3 585.3 890.5 1967 2,271.4 1,337.7 146.2 579.2 612.3 374.4 245.0 100.6 28.8 -16.9 143.6 160.5 576.2 304.4 271.8 2,242.6 2,288.3 2.9 3.3 3.0 3918 116.2 21.0 -29.7 155.7 185.3 597.6 309.6 288.0 2,344.6 2,395.3 4.1 4.5 4.7 1968 2,365.6 1,405.9 161.6 602.4 641.8 254.5 1969 2,423.3 1,456.7 167.8 617.2 671.7 4103 269.7 115.4 25.1 -34.9 165.0 199.9 591.2 295.6 295.6 2,398.1 2,458.1 2.4 2.3 2.6 38115 109.3 8.2 -30.0 178.3 208.3 572.6 268.3 304.3 2,407.9 2,446.2 -.3 .4 -.5 1970 2,416.2 1,492.0 162.5 632.5 697.0 264.0 1971 2,484.8 1,538.8 178.3 640.3 720.2 419.3 258.4 141.3 19.6 -39.8 179.2 218.9 566.5 250.6 315.9 2,465.2 2,524.6 2.8 2.4 3.2 277.0 166.6 21.8 -49.4 195.2 244.6 570.7 246.0 324.7 2,586.8 2,658.0 5.0 4.9 5.3 1972 2,608.5 1,621.9 200.4 665.5 756.0 465.4 1973 2,744.1 1,689.6 220.3 683.2 786.1 520.8 317.3 163.4 40.0 -31.5 242.3 273.8 565.3 230.0 335.3 2,704.1 2,775.7 5.2 4.5 4.4 317.8 130.2 33.3 .8 269.1 268.4 573.2 226.4 346.8 2,696.0 2,728.5 -.5 -.3 -1.7 1974 2,729.3 1,674.0 204.9 666.1 803.1 4813 1975 2,695.0 1,711.9 205.6 676.5 829.8 383.3 281.2 114.9 -12.8 18.9 259.7 240.8 580.9 226.3 354.6 2,707.8 2,676.1 -1.3 .4 -1.9 453.5 140.8 22.1 -11.0 274.4 285.4 580.3 224.2 356.0 2,804.6 2,837.7 4.9 3.6 6.0 1976 2,826.7 1,803.9 232.3 708.8 862.8 290.6 1977 2,958.6 1,883.8 253.9 731.4 898.5 521.3 324.0 168.1 29.1 -35.5 281.6 317.1 589.1 231.8 357.2 2,929.5 2,994.1 4.7 4.5 5.5 362.1 178.0 36.8 -26.8 312.6 339.4 604.1 233.7 370.4 3,078.4 3,142.0 5.3 5.1 4.9 1978 3,115.2 1,961.0 267.4 753.7 939.8 570.9 1979 3,192.4 2,004.4 266.5 766.6 971.2 5752 389.4 170.8 15.0 3.6 356.8 353.2 609.1 236.2 373.0 3,177.4 3,188.8 2.5 3.2 1.5 379.2 137.0 -6.9 57.0 388.9 332.0 620.5 246.9 373.6 3,194.0 3,130.1 -.2 .5 -1.8 1980 3,187.1 2,000.4 245.9 762.6 991.9 5093 1981 3,248.8 2,024.2 250.8 764.4 1,009.0 545.5 395.2 126.5 23.9 49.4 392.7 343.4 629.7 259.6 370.1 3,225.0 3,199.4 1.9 1.0 2.2 366.7 105.1 -24.5 26.3 361.9 335.6 641.7 272.7 369.0 3,190.5 3,139.7 -2.5 -1.1 -1.9 1982 3,166.0 2,050.7 252.7 771.0 1,027.0 4478 1983 3,279.1 2,146.0 283.1 800.2 1,062.7 5040 361.2 149.3 -6.4 -19.9 348.1 368.1 649.0 275.1 373.9 3,285.5 3,299.1 3.6 3.0 5.1 425.2 170.9 62.3 -84.0 371.8 455.8 677.7 290.8 387.0 3,439.1 3,585.4 6.8 4.7 8.7 1984 3,501.4 2,249.3 323.1 825.9 1,100.3 658.4 1985 3,618.7 2,354.8 355.1 847.4 1,152.3 637.0 453.5 174.4 9.1 -104.3 367.2 471.4 731.2 326.0 405.2 3,609.6 3,723.0 3.4 5.0 3.8 438.4 195.7 5.6 -129.7 397.1 526.9 761.6 334.1 427.5 3,712.4 3,847.6 2.7 2.8 3.3 1986 3,717.9 2,446.4 384.4 878.1 1,183.8 6396 1987 3,853.7 2,513.7 389.6 890.4 1,233.7 G.O 455.5 194.8 23.7 -115.7 450.9 566.6 781.8 339.6 442.1 3,830.0 3,969.4 3.7 3.2 3.2 493.8 194.1 27.9 -74.9 530.1 605.0 785.1 328.9 456.2 3,996.5 4,099.3 4,4 4.3 3.3 1988 4,024.4 2,598.4 413.6 904.5 1,280.2 7158 17.0 178.2 1,644.9 1,681.0 7.0 5.2 5.4 20.4 182.2 1,659.5 1,673.8 -1.1 3.6 -1.7 21.8 185.0 1,657.6 1,670.8 ,.4 -.5 -.7 02/02/1990 16:51 FROM USDA/ECON RM. 227E TO 94566218 P.01 ECONOMIC ANALYSIS STAFF FAX TRANSMITTAL DATE: 2-2-90 SUBJECT: FARM INCOME II TO: FROM: Name: Stephame Blessey Name: Jim VERTREES Company: Company: USPA/ERS Telephone: 4567750 Telephone: 4754587 FAX No. : 45662'8 FAX No.: : 475 49.5 MESSAGE: Ceo discussed NUMBER OF PAGES BEING SENT, INCLUDING THIS COVER SHEET: 2 02/02/1990 16:52 FROM USDA/ECON RM. 227E TO 94566218 P.02 able income. Marketing receipts should Despite the tightening in some interna- climb, reflecting larger commodity out- tional markets, U.S. grain and oilseed put and higher prices for some commodi- exports will face increased competition ties. At the same time, lower feed costs from expanded production in other coun- will help stabilize livestock production tries. U.S. grain exports will be down expenses. slightly because of rebounding crops and exports in Canada and Argentina, near- Even with smaller direct government pay- record exports by the EC, and tighter ments, farmers' net cash income will U.S. food grain supplies. range between $52 and $57 billion in 1990 This would be 2 to 4 percent U.S. soybean exports will face record higher than USDA's latest estimate for South American production. A smaller 1989. Net farm income, however, is crop is likely in Brazil, but the Argentine expected to be $44-$49 billion, 2 to 5 per crop will be up sharply with expanded cent below 1989's record. acreage and higher yields. Early indica- tions point to a record low for the U.S. Most prices likely will be casing by the share of the world market. In contrast to time the 1990 crop is harvested in the grains and soybeans. the U.S. share of fall, accounting for the slight estimated the world cotton market is expected to drop in net farm income. recover from a year earlier. Agricultural Economy Net farm income is an estimate of the The global wheat outlook for 1989/90 is value of production plus direct govern- highlighted by record production, a sligh ment payments less all costs in a calen- drop in world trade, and a further decline Global Output and dar year, while net cash income reflects in stocks. Much of the gain in world pro Farmers' Cash Incomes estimates of cash receipts plus govern- duction is being offset by lower begin- To Rise ment payments less out-of-pocket ning stocks, leaving supplies up only expenses. marginally. With 1989/90 use advancin to a record. ending stocks will drop agail The world agricultural outlook is charac- For U.S. consumers, record meat produc- terized by rebounding commodity out- tion, higger crops, and slowing inflation The outlook for U.S. wheat in 1989/90 il put, rising consumption, and falling crop will hold retail food price increases to 3 for higher output, lower beginning stocks in 1989/90. World crop produc- to 5 percent in 1990. In 1989, food stocks, smaller exports, and possibly the tion is recovering from 1988/89's prices probably rose nearly 6 percent, smallest ending stocks since 1974/75. reduced level. But for most crops, pro- because of lingering effects of the 1988 duction will not match continued high drought in the first half. Global rice production in 1989/90 is for use. cast at a record, up 2 percent from last In 1990, world animal product output U.S. crop output is likely to increase in season's bumper crop. Large harvests 1990 as acreage expands and yields trend are expected in China, Bangladesh, Indo will expand slightly, led by much larger higher. In the 1990's, export demand for nesia, Victnam, and Thailand. Given nc U.S. poultry production. World com- modity consumption will reach a record U.S. agricultural products should expand mal weather, global rice production in response to continued economic and as economic growth and GATT trade should expand in 1990/91 and prices reform widen international markets. decline further. population growth. Commodity prices will be supported by strong demand and U.S. rice production and stocks are dow declining stocks of most crops. although from a year earlier, especially for long feed grain and oilseed prices will con- Despite Higher Global Consumption, grain. U.S. exports rose 19 percent in tinue easing from 1988/89's drought- Export Competition Is Strong 1988/89 from a year earlier. Exports as driven levels. forecast to fall to 79 million CWI in 1989/90 because of an expected decline In 1990/91. assuming trend yields, U.S. World commodity consumption is mov- ing to record levels and will exceed pro- in world imports. and foreign production of many crops duction for most crops. Use is could rise again, and some stock rebuild- ing may take place. Farmers will be responding to three factors: The global coarse grain outlook for real economic growth of 3 to 3-1/2 1989/90 is for larger supplies but a fur- responding to prices that are likely still ther decline in ending stocks. World to be above predrought levels and to loos- percent, coarse grain trade will continue to rise, ened acreage reduction requirements for wheat and cotton in the U.S. following last year's 13-percent increas meat output 1 percent larger, spur- Bigger imports by the USSR, South Korea, China, and several lesser import Marketing Receipts ring demand for feed grains, and ers are forecast to result in the largest To Go Up world coarse grain trade since 1984/85. This outlook suggests that U.S. farmers population growth of about 1.7 per- U.S. exports are forecast up around 4 can look forward to another year of favor- cent. percent. 2 Agricultural Outk 02/02/1990 16:53 FROM USDA/ECON RM. 227E TO 94566218 P.03 im Income pie 32.-Farm Income Statistics Calendar year 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 F 1990 F $ billion Farm receipts 142.0 144.1 147.1 141.1 166.8 149.1 140.6 145.3 157.2 164 165 to 170 Crops (incl. net CCC loans) 71.7 72.5 72.3 67.1 69.5 74.3 64.0 63.8 72.6 75 77 to 80 Livestock 68.0 69.2 70.3 69.4 73.0 69.8 71.5 75.7 78.9 83 80 to 83 Farm related 1/ 2.3 2.5 4,5 4.5 4,4 5.0 5.1 5.8 5.7 $ 5 to 7 Direct Government payments 1.3 1.9 3.5 9.3 8.4 7.7 11.8 16.7 14.5 11 8 to 11 Cash payments 1.3 1.9 3.5 4,1 4.0 7.6 8.1 6.6 7.1 10 7 to 9 Value of PIK commodities 0.0 0.0 0.0 5.2 4.5 0.1 3.7 10.1 7.4 1 1 to 2 Total gross farm iner e (4+5+6) 2/ 149.3 166.4 163.5 153.1 174.9 166.4 160.4 171.6 177.6 190 185 to 190 Gross cash income 2) 143.3 146.0 150.6 150.4 155.2 156.9 152.5 162.0 171.6 174 173 to 178 Nonmoney income 3/ 12.3 13.8 14.3 13.5 13.4 11,8 10.6 10.0 10.3 10 9 to 11 value of inventory change -6.3 6.5 -1.4 -10.9 6.3 -2.4 -2.7 ..4 -4.3 $ 1 to 3 Cash expenses 41 109.1 113,2 112.8 113.5 116.6 110.2 100.7 107.5 114.4 121 119 to 122 Total expenses 133.1 139.4 140.0 140.4 142.7 134.0 122.4 128.0 135.0 141 139 to 142 Net cash income (4-7) 34.2 32.8 37.8 36.9 38.6 46.7 51.8 54.5 57.2 63 52 to 57 Net farm income (3-8) 16.1 26.9 23.5 12.7 32.2 32.4 38.0 43.6 42.7 48 46 to 49 Deflated (19825) 18.8 28.6 23.5 12.2 29.9 29.2 33.4 37.2 35.2 38 34 to 38 off-farm income 34.7 35.8 36.4 37.0 38.9 42.6 44.6 46.8 51.7 54 55 to 59 Loan changes 3/1 Real estate 9.9 9.1 3.6 2.3 -1,1 -6.0 -9,0 -7.5 -4.4 -2 0 to 3 -11.0 -4.6 -0.3 0 -1 to 1 5/: Non-real estate 5.3 6.5 3.4 0.9 -0.8 -9.6 Rental Income plus monetary change 6.1 6.4 6.3 5.3 8.9 8.8 7.8 6.8 8.5 8 7 to 9 Capital expenditures 51 18.0 16.8 13.3 12.7 12.5 9.2 8.5 9.8 10.2 11 " to 13 NEC cash flow (9+12+13+14-15) 37.6 37.8 38.1 32.7 33.1 30.7 31.2 39.4 50.8 48 50 to 58 11 Income from machine hire, custom work, sales of forest products, & other miscellaneous cash sources. 2/ Numbers in parentheses licate the combination of items required to calculate a given item. 3/ Value of home consumption of self-produced food & imputed 556 rental value of farm duellings. 41 Excludes capital consumption, perquisites to hired labor, & farm household expenses, Excludes farm households. Totals may not add because of rounding. f = forecast. 1987 and 1988 expenses include preliminary risions from the 1987 Census of Agriculture. Cormation contact: Diane Berteisen (202) 766-1808. ble 33.-Balance Sheet of the U.S. Farming Sector Calendar year 1/ 2/ 1982 1983 1984 1985 1986 1987 1988 1989 F 1990 F 1980 1981 $ billion ets eat estate 782.4 784.7 748.8 738.7 637.7 555.9 507.3 577.0 607.9 648 675 to 685 on-real estate 213.2 212.0 212.2 205.6 209.0 190.5 182.2 187.8 202.5 201 200 to 210 Livestock & poultry 60.6 53.5 53.0 49.7 49.6 46.3 47.6 57.9 65.7 67 66 to 70 Machinery & motor 93,1 101.4 102.0 100.8 96.9 87.6 80.3 73.9 74.7 76 75 to 79 vehicles 23.9 29.7 23.6 19.1 20.9 26.2 22 19 to 23 Crops stored 3/ 33.0 29.1 27.7 Financial assets 26.5 28.0 29.5 31.3 32.8 33.0 35.2 35.2 35.9 36 36 to -38 Total farm assets 995.6 996.7 961.0 944.3 846.7 746.4 689.5 764.9 810.4 849 880 to 890 bilities eat estate debt 41 89.6 98.7 102.5 104.8 103.6 97.6 88.6 81.1 76.7 75 73 to 77 !on-real estate debt 5/ 77.1 83.6 87.0 87,9 87.1 77.5 66.6 62.0 61.7 61 60 to 64 192.7 190.7 175.1 155.1 143.1 138.4 136 134 to 140 Total farm debt 166.8 182.3 189.5 Total farm equity 828.9 814.4 771.5 751.6 656.0 571.3 534.4 621.8 672.0 713 740 to 750 Percent ected ratios 16.8 18.3 19.7 20.4 22.5 23.5 22.5 18.7 17.1 16 15 to 16 (ebt-to-assets lebt-to-equity 20.1 22.4 24.6 25.6 29.1 30.6 29.0 23.0 20.6 19 18 to 19 lebt-to-net cash income 488 556 497 523 493 375 299 248 231 256 240 to 250 1/ 17 of Agriculture. Revisions in real estate assets for 1983-1986 have not been completed. 3/ Non-CCC crops As of Dec. 31. 2/ Estimates of farm assets and equity for 1987-1990 reflect revisions in real estate assets based held on on the 'ms Census plus value above loan rates for crops held under CCC. 41 Excludes debt on operator dwellings, but includes CCC storage 1 drying facilities loans. 5/ Excludes debt for nonfarm purposes. F $ forccast. information contacts: Ken Erickson or Jim Ryan (202) 786-1798. 61 unuary-February 1990 THE WHITE HOUSE WASHINGTON permit) FACSIMILE TRANSMITTAL SHEET NUMBER OF PAGES INCLUDING COVER DATE TO Notolie Peatz FAX NUMBER (402)471-0805 OFFICE NUMBER COMMENTS FROM Stephonie Bussey FAX NUMBER OFFICE NUMBER (202)456-7750 Here Bico 111 Eniuromentaly met. (111+ QB. Pol. LIP! BPB R (11711) SoU CA++ Eligabeth Amer. the Quot. Litte Brow VHIS Cells Eligibeth Elizabeth Anay Bill Lec 611) 680-4730 1707 You. Farlong for 687 371 - Cooper