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Ohio Broadcasters Association 4/29/92 [OA 7572]
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Ohio Broadcasters Association 4/29/92 [OA 7572]
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Ohio Broadcasters Association 4/29/92 [OA 7572]
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22
5
1
Regulatory Horror Stories
1]
RCRA Toxicity Characteristic, CFC Refrigerants, and Asthma
Medication: The same CFCs which are used as refrigerants also are
used as the propellants in a variety of pharmaceuticals,
including the bronchodialators used by millions of asthmatics.
FDA approved these chemicals as propellants because they are safe
and effective. Because of EPA overregulation, they are also
hazardous wastes.
Explanation:
EPA seeks (and will soon require under CAAA) the recycling of CFC
refrigerants to prevent them from being vented into the
atmosphere where they may ultimately damage the ozone. However,
the act of reclaiming these refrigerants tranforms them into
"solid wastes" under RCRA. The refrigerator repairman thus
becomes a "generator" for purposes of RCRA, and has a legal
obligation to test this "solid waste" to ensure that it is not
hazardous.
To make matters worse, CFC refrigerants contain trace levels
of chloroform and carbon tetrachloride -- ingredients in CFC
manufacture. Because these trace levels are greater than the
thresholds permitted under the "toxicity characteristic" rule
promulgated in 2/1990, reclaimed CFCs are classified as hazardous
wastes and must be managed in accordance with strict RCRA
requirements.
2] USDA Marketing Orders: USDA requires that the label for any
product containing meat or poultry be approved prior to use. An
office at USDA (with 8 label reviewers) reviews approximately
180,000 labels a year. Ther system is so inefficient that a
private industry of "label expediters" has grown up to help usher
label applications through the USDA process. There is a huge
backlog of applications because whenever USDA changes its rules,
all affected labels must be resubmitted and re-approved. No
other labeling program (such as FTC or FDA) requires prior
approval of labels.
3] Used Lubricating Oil: EPA is about to list used lubricating
oil as a hazardous waste unless it is managed in accordance with
strict management standards. Once the value of this substance is
decimated by EPA, millions of gallons of used lube oil that is
currently recycled will be dumped into the trash or down the
antion's storm drains and into streams, rivers, lakes and
estuaries.
Explanation
EPA's own estimates show these standards wil raise the cost of
recycling used lube oil by about $1 per gallon. Since the
current market price of used lube oil in the recycling market is
about zero (i.e., collectors will take it away for free), EPA's
regs. will cause the market price to plummet to -$1 per gallon
(i.e., collectors will charge $1 per gallon to take it away).
4]
Flooding Balconies Rule: In implementing the Fair Housing
Act, HUD initially wanted to require all multi-unit housing with
balconies to make these balconies "flush" with the inside floor
level (in order to improve wheelchair accessibility).
Unfortunately, as any architect or home builder will tell you,
doing so could cause water to flood the apartment whenever it
rained. As a result of White House review, HUD modified the
requirement (to 4 inches).
5]
Christopher Columbus Rule: The NRC already protects the
American public from Low Level Radioactive Waste Disposal. At an
estimated cost of $2.3 billion, EPA wants to further regulate
such waste to prevent no more than 13 cancers cases over a 10,000
year period, the first case not occurring until after 500 years.
Thus, if Christopher Columbus had mad this $2.3 billion
investment when he discovered the New World, the first death
averted would only just now be occurring.
6] Clean Hard Hat Rule: When OSHA updated its rules on hard
hats, it included a new requirement that all hard hats be
"disinfected" before exchanging hands. This requirement would
have cost some $60 million a year with no measurable benefits.
There was not one documented case of anyone catching anything
from an infected hard hat. After White House review, OSHA
decided to drop this requirement from the regulation.
7] Happy Animals Rule: USDA has been drafting rules to modify
its laboratory animal welfare standards. Such rules must
provide, among other things, for the "psychological wellbeing of
primates. " The original drafts specified exact cage sizes and
other details of daily care and feeding. USDA estimated the
costs of these rules at $3 billion. After receiving strong
criticism from the scientific community (and after discussions
with the White House), USDA has modified the rules and cut about
$1 billion from the costs.
STATE OF OHIO DC
TEL : 202-624-5847
Apr 29 92 17:01 No.036 P.01
DEFICE OF THE
*
*
STATE
or
OHIO
STATE OF OHIO
WASHINGTON OFFICE
Mike DoWine
George V. Voinovich
11. Governor
Governor
April 29, 1992
To: Bob Simon
From: Tom Needles
Dayton Area Health Plan
In this State, an unreasonable and unnecessary federal regulation
almost forced the closing of the Dayton Area Health Plan, an
innovative Medicaid managed care program designed to offer high
quality care to some 43,000 Medicaid recipients in Dayton.
Governor Voinovich led the effort to change this inequity, and,
just two days ago, I signed legislation granting an exemption for
this reform initiative that I am confident will continue to provide
cost-effective, quality care to needy Ohioans.
Federal regulations on education funding
One final example of federal over-regulation is in the area of
education -- which is more highly regulated than most U.S.
enterprises.
Let me give you an example of what I mean: In Ohio, local schools
districts send nearly 350 different forms totalling over 1,000 pages
to the State each year. Over 50 percent of this paperwork is
required to receive federal funds that constitute only about 5
percent of a local district's budget.
I think we can do better that that. I have instructed Lamar
Alexander, my Education Secretary, to work with State officials to
identify federal, state and local education programs that have
unnecessary and burdensome paperwork and reporting mandates and
eliminate them.
Bob, I hope this helps.
444 North Capitol Street, N.W.
Suite 528
Washington, D.C. 20001
202/624-5844
NC 12/16
A-1
SERVICE AMBULANCE INC.
A-1AMBULANCESERVICE,INC.
P.O. Box 179
123 Plainfield Avenue
Bedford Hills, N.Y. 10507
ALWAYS
SERVING
(914) 666-2901
December 13, 1991
Mr. Allan B. Hubbard
Deputy Chief Of Staff
The White House Council on Competitiveness
The White House
1600 Pennsylvania Avenue
Lati
Washington DC 20013
Dear Mr. Hubbard:
Copy letternly Dinorme
In the past we have all been incensed when we learned of
items sold to the U. S. Government for amounts far beyond
Onj.to
reasonable cost. Unfortunately, I -have personally just
encountered such an example where Federal Law has caused
BB
such an outrageous purchase specifications that make a $500
toilet seat look like a bargain! Specifically, our company
has been a vendor to the Veterans Administration for over 15
years, providing an established service for a reasonable
fee. In our most recent bid request we encountered a new
Federal Wage Department Regulation which will increase the
costs of providing our service, and therefore costs to the
government, by over 34 times. As a businessman I feel
participating in this inequity to be extremely distasteful
and as a taxpayer I am outraged!!
puid holidays
The Federal law now included in this Veterans Administration
meal periods
bid (Bid IFB 620-15-92) is The U.S. Department of Labor,
Employment Standards Administration, Wage and Hour Division
imiforms
Register of Wage Determinations Under the Service Contract
Act. This includes Federally established wages and benefits
wages
(Decision 99-768 Rev. 5) which, we are told MUST be paid to
employees of companies who contract with the Federal
Government. Unfortunately these wages and benefits are a
little more than double the industry standard for this area.
This industry standard is based upon what the private market
will pay and more specifically what Medicare and Medicaid
will allow.
We are now faced with the quandary, either double our
companies ENTIRE compensation cost or lose a major contract.
If we are to bid this contract we will have to cover a
doubling of all of our labor costs. It should be noted that
the business our VA contract produces is approximately 10%
of total revenue. This would result in the government
paying for an ambulance call, which is now approximately
$198.00 and have the cost jump to approximately $6,800.00
per call. Since we were the only bidder for this contract
we have been informed by the Hospital they will have to
accept whatever bid is received. If we do not bid the
contract this which will result in Franklin Delano Roosevelt
Hospital being without an emergency ambulance service.
Allan B. Hubbard
December 13, 1991
Page 2
Please understand the difficult moral position this puts me
in, increasing my prices 3400% to continue to provide the
same service is insane, therefore I have yet to decide to
submit this bid. Your assistance in confirming that this
wage determination is a requirement for a federal contract
would be appreciated. In addition should anyone question a
$6,800 ambulance trip, which everyone else could buy for
$198.00, that the local Senators were informed and this is
the Federal Law. If this is true, I wonder how many toilet
seats we have all bought for $500.00?
Sincerely,
Dialing Warburg
3
CEO
cc: Senator (s) Moynihan & D'Amato
enclosures
U.S. DEPARTMENT OF LABOR
Page 1 of 5
EMPLOYMENT STANDARDS ADMINISTRATION
WAGE AND HOUR DIVISION
State: New York
WASHINGTON, D.C. 20210
Area: NY COUNTIES: BRONX, KINGS, NEW YORK
REGISTER OF WAGE DETERMINATIONS UNDER
LOCALITY
PUTNAM, QUEENS, RICHMOND, ROCKLAND
THE SERVICE CONTRACT ACT
WESTCHESTER
By direction of the Secretary of Labor
aland Miss
OF
Al L. Moss
Division of
Director
Wage Determinations
Wage Determination No.: 88-0768 (Rev. 5) Date: 05/01/1991
Minimum
Fringe Benefit Payments
Class of Service Employees
Hourly
Wage
Health &
Vacation
Holiday
Other
Welfare
General Services and Support Occupations,
Transportation, and Miscellaneous:
1. Baker
$ 16.15
2. Cook I
$ 14.17
3. Cook II
$ 16.15
4. Meat Cutter
$ 16.15
5 Mess Attendant
$ 12.33
( Cleaner, Vehicles
$ 12.33
7. Gardener
$ 12.33
8. Housekeeping Aide I
$ 12.33
9. Housekeeping Aide II
$ 12.94
10. Janitor, Porter, Cleaner
$ 12.33 4/
11. Laborer, Grounds maintenance
$ 12.33
12. Pest Controller
$ 14.17 5/
13. Refuse Collector
$ 12.33 6/
14. Embalmer
$ 12.32
15. Mortician
$ 12.32
16. Truckdriver, Refuse Collection
$ 14.17 6/
17. Taxi Driver
$ 11.15
18. Tractor Operator
$ 14.17
19. Ambulance Driver
$ 14.17
20. Animal Caretaker
$ 12.33
21. Emergency Medica Technician
$ 14.17
U.S. DEPARTMENT OF LABOR
Page 2 of 5
EMPLOYMENT STANDARDS ADMINISTRATION
WAGE AND HOUR DIVISION
State: New York
WASHINGTON, D.C. 20210
Area: NY COUNTIES: BRONX, KINGS, NEW YORK
REGISTER OF WAGE DETERMINATIONS UNDER
LOCALITY
PUTNAM, QUEENS, RICHMOND, ROCKLAND
THE SERVICE CONTRACT ACT
WESTCHESTER
By direction of the Secretary of Labor
75
OF
Al L. Moss
Division of
Di stor
Wage Determinations
Wage Determination No.: 88-0768 (Rev. 5) Date: 05/01/1991
72
Minimum
Fringe Benefit Payments
Class of Service Employees
Hourly
Wage
Health &
Vacation
Holiday
Other
Welfare
22. Recreation Specialist
$ 10.07
23. Registered Industrial Nurse
$ 17.35
24. Swimming Pool Operator
$ 13.56
25. Vending Machine Attendant
$ 7.35
26. Vending Machine Repairer
$ 9.89
27. Vending Machine Repairer
$ 7.99
Helper
Fringe benefits applicable to all classes of service employees
engaged in contract performance:
1/
2/
3/
1/ HEALTH & WELFARE: $.59 an hour or $23.60 a week or $102.26 a month.
2/ VACATION: 2 weeks paid vacation after 1 year of service with a contractor or successor; 3 weeks
after 5 years; 4 weeks after 15 years. Length of service includes the whole span of continuous
service with the present (successor) contractor, wherever employed, and with the predecessor
contractor in the performance of similar work at the same Federal facility. (Reg. 4.173)
3/ HOLIDAYS: 11 paid holidays per year: New Year's Day, Martin Luther King Jr's Birthday,
Washingtons' Birthday, Good Friday, Memorial Day, Independence Day Labor Day, Columbus Day,
Veterans' Day, Thanksgiving Day, and Christmas Day. (A contractor may substitute for any of the
named holidays another day off with pay in accordance with a plan communicated to the employees
U.S. DEPARTMENT OF LABOR
Page 3 of 5
EMPLOYMENT STANDARDS ADMINISTRATION
WAGE AND HOUR DIVISION
State: New York
WASHINGTON, D.C. 20210
Area: NY COUNTIES: BRONX, KINGS, NEW YORK
REGISTER OF WAGE DETERMINATIONS UNDER
LOCALITY
PUTNAM, QUEENS, RICHMOND, ROCKLAND
THE SERVICE CONTRACT ACT
WESTCHESTER
By direction of the Secretary of Labor
OF
A] L. Moss
Division of
Di. :ctor
Wage Determinations
Wage Determination No.: 88-0768 (Rev. 5) Date: 05/01/1991
Minimum
Fringe Benefit Payments
Class of Service Employees
Hourly
Wage
Health &
Vacation
Holiday
Other
Welfare
involved.)
4/ Rate applies to Putnam, Rockland, and Westchester counties.
5/ Rate applies to Putnam and Rockland counties.
6/ Rates apply to Rockland county only.
WAGE DETERMINATION 88-0768 (Rev. 5)
DATE 05/01/1991
Page 4 of 5
NOTE: The contracting officer shall require that any class of service employee which is not listed
herein and which is to be employed under the contract (i.a., the work to be performed is not
performed by any classification listed in the wage determination), be classified by the contractor
so as to provide a reasonable relationship (i.e., appropriate level of skill comparision) between
such unlisted classifications and the classifications listed in the wage determination. Such
conformed classes of employees shall be paid the monetary wages and furnished the fringe benefits
as are determined. Such conforming procedures shall be initiated by the contractor prior to the
OF
per Drmance of contract work by such unlisted class (es) of employees. A written report of the
prt sed conforming action, including information regarding the agreement or disagreement of the
authorized representative of the employees involved or, where there is no authorized
representative, the employees themselves, shall be submitted by the contractor to the contracting
officer no later than 30 days after such unlisted class(es) of employees performs any contract
work. The contracting officer shall review the proposed action and promptly submit a report of the
action, together with the agencys' recommendation and all pertinent information including the
position of the contractor and the employees, to the Wage and Hour Division, Employment Standards
Administration, U.S. Department of Labor, for review. (See section 4.6 (b) (2) of Regulations 29
CFR 4)
UNIFORM ALLOWANCE: If employees are required to wear uniforms in the performance of this contract
(either by the terms of the Goverment contract, by the employer, by the state or local law, etc.),
the cost of furnishing such uniforms and maintaining (by laundering or dry cleaning) such uniforms
is an expense that may not be borne by an employee where such cost reduces the hourly rate below
that required by the wage determination. The Department of Labor will accept payment in accordance
will the following standards as compliance:
The contractor or subcontactor is required to furnish all employees with an adequate number of
uniforms without cost or to reimburse employees for the actual cost of the uniforms. In addition,
where uniform cleaning and maintenance is made the responsibility of the employee,
all contractors and subcontractors subject to this wage determination shall (in the absence of a
bona fide collective bargaining agreement providing for a different amount, or the furnishing of
contrary affirmative proof as to the actual cost), reimburse all employees for such cleaning and
maintenance at a rate of $3.80 a week (or 76 cents a day); and effective April 1, 1991, the note
shall be $4.25 per week (or $.85 cents per day). However, in those instances where the uniforms
furnished are made of "wash and wear" materials, may be routinely washed and dried with other
personal garments, and do not require any special treatment such as dry cleaning, daily washing, or
commercial laundering in order to meet the cleanliness or appearance standards set by the terms of
the Goverment contract, by the contractor, by law, or by the nature of the work, there is no
requirement that employees be reimbursed for uniform maintenance costs.
WAGE DETERMINATION 88-0768 (Rev. 5)
DATE 05/01/1991
Page 5 of 5
NOTE: The duties of employees under job titles listed are those described in the Service Contract
TOTAL 05
Act Directory of Occupations, Second Edition, July 1986, unless otherwise indicated. See also 29
CFR Part 4 Section 4.152.
OCCUPATIONS NOT INCLUDED IN THE SCA DIRECTORY OF OCCUPATIONS
OF
ANI NL CARETAKER
75
The purpose of this position is to clean animal cages, feed and water animals, and perform animal
handling and other duties associated with maintaining laboratory animals used in the biomedical
research or training programs.
1. Cleans laboratory animal cages, enclosures and adjacent areas. Sanitizes cages using mechanical
washers. Sanitizes runs, cage racks, shipping crates, carts, and other bulky equipment manually
using hose spray, brushes, and cleaning agents. Empties, washes, and refills feed and water
containers. Inspects cages to insure doors, latches, and fittings are operational. Makes minor
adjustments and repairs to caging, or notifies the supervisor.
2. Handles animals in conjunction with relocating, examining, grooming, or administering medica-
tions. Ensures accurate identification of animals moved, requested, or treated.
3. Unloads, lifts, carries, and stacks large bags or boxes of animal feeds, bedding material, fresh
fruits, and other supplies and equipment. Observes stock levels of these items and advises
pervisor as quantities are exhausted.
4. Prepares and feeds regular and special diets. Observes feeding habits of individual animals and
reports any irregularities in appetite, consumption rate, or rejection of food. Reports any
unwholesome or poor quality detected in feeds.
5. Operates cage washing machines, autoclaves, portable steam generators, incinerators, and other
related equipment. Reports defective operation of units to the section.
6. Observes animals continuously for indications of poor health or injury. Reports any abnormal
stool or urine conditions, evidence of parasites, appearance of blood or mucous, and any
suspicious skin or coat conditions. Collects biological samples as requested. Assists in
administering medical treatments as directed by the veterinarian.
7. Performs other duties as assigned.
1991 EMS
01000
Salary Survey
Sisaino
by Richard A. Keller and Jamiel M. Yameen
F
rom the moment of birth,
humans are evaluated. The one-
minute, 10-point Apgar test be-
Position Definitions
gins a lifelong journey of count-
did
less assessments that track intelligence,
Executive Director (general manager, director, chief executive officer Mil
credit-worthiness, personality traits
president, owner; etc.)-Responsible for entire service, including
and professional standing. In the same
operations, financial, billing and collections. Reports directly to
way that individuals are evaluated, so
board of directors, governmental board or owner, or reports to no one the
too are the organizations for which
& 0600 egiter
they work. For example, the JEMS
Administrative Director (controller, director of administrative functions
1991 EMS Salary Survey evaluates the
only)-Responsible for financial, billing and collections and other the
compensation and benefit levels of a
administrative functions. Is not directly responsible for ambulance
wide variety of EMS agencies across
operations. Reports to executive director.
the United States. Using this survey,
EMS professionals can compare their
Operations Manager (fire chief, assistant director, etc.)-Directly
06
agencies against the competition.
responsible for all operational activities without necessarily being
guims
fully responsible for all administrative duties.
The authors of the Salary Survey
realize that it is received each year with
Division/Operations Supervisor (battalion chief, assistant chief, etc.) this
mixed emotions. One ambulance-
More involved in daily supervision of field and communications THE
service owner commented, "I always
personnel. Has no financial responsibilities.
know when the Salary Survey is pub-
lished because the next morning it is on
Field Supervisor (captain, field or communications supervisor)-
my desk, with the wage comparisons
Directly responsible for the daily supervision of field or
between private and fire services high-
communications personnel. Has no financial responsibilities.
lighted." Periodically, the authors re-
Paramedic-Holds certification at the paramedic level and is primarily
ceive calls from various union negotia-
responsible for direct patient care.
tors representing EMS personnel; the
main question asked is, "Do you have
EMT-Intermediate-Holds certification at any intermediate level and
any newer [read: higher] numbers to
is primarily responsible for direct patient care.
report?" Judging by the amount of cor-
respondence generated by the survey,
Basic EMT-Holds certification at the basic leveLand is primarily
responsible for direct patient care.
it is apparent that it fills an important
informational need.
Dispatcher-Primary responsibilities are taking and routing ambulancel
This is the fourth year that JEMS and
call;
Fitch & Associates Inc., a national EMS
Physi :ia n Medical Director-Res ponsible for overseeing medical control 1030
AHI
consulting firm, have collaborated in
providing a standardized report on
PIC supervision.
EMS compensation and salary com-
Traini 2,5 Director-Responsible fc continuing education, quality
parisons. While the sample size used is
is urance and specialized trair ing.
too small to classify the Salary Survey
as scientific, the survey is designed to
Public-1 aformation Officer-Major responsibilities include supervising
identify ongoing trends and provide a
pul lic-education programs, dealing with the media, internal
basis for comparison among various
munications and public relations.
organizations. It is designed to aid
First Responder-Involved in EMS as first responder and has received
management in the development of
specialized training in patient care.
long-term compensation plans and to
72 JEMS OCTOBER 1991
allow EMS personnel to gauge their
progress
Table 1
Table 2.
>>il his year's survey gathered informa-
Personnel Included
tion during June and July of 1991. Al-
Sample Group
though called the 1990 survey, informa-
in Survey
by Provider Type
tion in last year's survey was gathered
hi October 1989. Therefore, when com-
Position
Number
Provider
Respondents
Percentage
paring both surveys, it should be noted
Executive Directors
69
Private
20
21.7
that there is a difference of 16 months in
Administrative Directors
50
Public
the data as opposed to one year.
Operations Managers
79
Fire Dept.,
20
21.7
The same organizations are asked to
Division/Operations Supervisors
127
Cross-trained
complete the survey each year; new or-
Field Supervisors
660
Fire Dept.,
7
Paramedics
7.6
ganizations also are enlisted to provide
3,724
Separate
a broader representative sample and to
EMT-Intermediates
697
Third Service
21
maintain an adequate survey-sample
Basic EMTs
22.8
5,583
Dispatchers
Other Public
4
770
4.3
size. The 1991 Salary Survey resulted in
305 data-entry points for each complet-
Medical Directors
18
Hospital
14
15.2
ed survey. Data were received from 92
Training Directors/Officers
44
Other
6
6.5
organizations and entered into a com-
Public-Information
34
puterized statistical analysis system.
and Education Officers
Total
92
First Responders
99.8*
The were cross-tabulated based
3,071
the type of organization, region,
Total
14,926
Service area, population served and
Percentage correct to the
emergency call volume. As every serv-
loadid not answer every question, there
dissivariation in the total number of re-
Table 3
spondents for certain questions.
helformat and presentation of infor-
Geographic Distribution of Respondents
mationinthis year's survey are consis-
tent with the three previous surveys.
Region
Respondents Percentage
However, this year's salary report dif-
Northeastern
these
16
ferentiates between fire departments
17.6
Connecticut, A laine, Massachusetts, New Hampshire,
that use cross-trained EMS personnel
Delaware, New Jersey, New York, Pennsylvania
and those that separate EMS operations
Rhode Island, Vermont, Michigan
from fire suppression.
2.
Western
34
37:4
-nThe organizations surveyed were
Alaska, Arizona, California, Hawaii, Idaho, Nevada,
asked to provide salary information for
New Maxico, Oregon, Utah, Washington, Colorado, Texas,
13 employee categories, including, for
Montans, Wyoming
the first time, first responders, medical
2. Central
25
27.5
directors, training directors/officers and
North Gakota, South Dakota, Nebraska, Kansas, Oklahoma,
public-information officers (see "Posi-
Ohio, Minnesota, lowa, Missouri, Illinois, Wisconsin, Indiana
tion Definitions"). The 1991 survey pro-
4. Southeastem
16
17.6
vides compensation information about
Florida, Georgia, Alabama, Mississippi, Arkansas,
nearly EMS professionals, includ-
Tennessee, North Carolina, South Carolina, Kentucky,
Ang13,724 paramedics and 6,280 EMTs or
Virginia, West Virginia, Louisiana, Maryland
BEMT-Intermediates (see Table 1). This
Total
91*
100.1
information is valid as of June 1991.
Agency location not given by one responder.
Ninety-two organizations submitted
Percentage correct to the closest point.
completed surveys. Of the responding
organizations, 21.7 percent (20) are pri-
Vale EMS agencies, 56.4 percent (52) are
of the respondents are from the north-
Birom the public sector, 15.2 percent (14)
percent (44) of the respondents have
eastern, 37.4 percent (34) are from the
arehospitals, and 6.5 percent (6) are
fewer than 10,000 annual emergency re-
western, 27.5 percent (25) are from the
other types of organizations. Twenty of
sponses (see Table 5). Cumulatively, 87
central, and 17.6 percent (16) are from
the 52 public agencies are fire depart-
of the 92 survey respondents handled
the southeastern United States. One of
ments that use cross-trained personnel,
between 1.2 and 2.4 million emergency
the respondents did not identify the area
seven are fire departments with sepa-
and non-emergency incidents last year.
in which his agency is located.
rate EMS divisions, 21 are city and
The responding EMS organizations
Annual Compensation
county third services, and four are
provide service to more than 37 million
As previously stated, the mean salaries
another type of public agency (e.g.,
Americans. See Table 4 for the break-
police, public safety, health department,
for the 13 EMS positions represented
down by population served.
etc.). See Table 2 for a complete delin-
were separated into seven provider
Emergency-call volume is another cri-
eation of the various provider groups
types (see Table 6); the type of
terion analyzed in the survey. Services
represented in the survey.
provider-private, public or hospital-
responding to the survey range from
The geographic distribution of re-
is the most significant factor affecting
those with fewer than 2,000 emergency
compensation levels. The mean over-
spondents is presented in Table 3. Di-
calls per year to those that respond to
all salary is provided for each position
vided into four regions, 17.6 percent (16)
more than 100,000 per year. Nearly 52
and, as the average figure nationwide,
OCTOBER 1991 JEMS 73
Table 4.
and private and fire-department EMTs.
However, variations within therEMT
Respondents by Population Served
subgroups allowed for amoyerall in-
crease in EMT salary levels While vari-
Population Range
Respondents
Percentage
ations are seen within thelsubgroups of
Less than 20,000
6
6.5
private and fire-department compensa-
20,000 to 49,999
8
8.7
tion levels, increased compensation for
50,000 to 99,999
13
14.1
each position overall ranges from 3.1
100,000 to 249,999
26
28.3
percent for EMTs to 12.4 percent for
250,000 to 999,999
EMT-Is. Overall, paramedic compensa-
31
33.7
tion increased 4.2 percent, and dispatch-
Greater than 1,000,000
8
8.7
er wages increased 4.4 percent."tata
Total
92
100.0
Because the 1988 Salary Survey was
based on information collected 1987,
it is now possible to analyze:trends
from 1987 through 1991.1 Table!8 ana-
Table 5.
lyzes the four-year compensation.trends
for nine positions; executive directors
Respondents by Emergency-call Volume
demonstrate the largest mean-salary
increase, 28.6 percent, while the small-
Annual Emergency-call Volume
Respondents
Percentage
est increase occurred in paramedic.co
Less than 2,000
17
19.5
pensation, which the fourryears,
2,001 to 5,000
13
14.9
was 13.4 percent. The average increase
5,001 to 10,000
15
17.2
for all positions was118 percent gon an
10,001 to 25,000
18
20.7
annual basis, this computes forantaver-
25,001 to 50,000
16
18.4
age 1.7-percent increase/penyear c a
50,001 to 100,000
4
4.6
Tables 9, 10 and lillustrate varia
Greater than 100,000
4
4.6
tions in compensation levelstamong 13
positions by region, call volumeiand
Total
87
99.9*
population of the primar diservice area.
Regional comparison of compensation
Percentage correct to the closest point.
levels reveals that, once again> the west-
ern region provides the highest salary
for all but one of the 13 positions; in the
represents the most statistically signifi-
mation from all types of providers
majority of positions, the northeastern
cant compensation figure (see "About
reveals that medical directors are paid a
region has the lowest compensation lev-
the Salary Survey' on page 79).
mean of $31,947 per year; training offi-
els, with the mean salary for 10 of the 13
Variances are likely to be demonstrated
cers, $37,325; public-information and
positions lower than the national mean.
within a particular provider type for a
education coordinators, $33,228; and
As seen in Table 10, mid- and upper-
single position because of the survey's
first responders, $26,875.
management positions in the busier
limited sample size.
Changes in compensation from 1990
services tend to have higher compensa-
Information in the 1991 Salary Survey
to 1991 for field personnel and dispatch-
tion levels than those that respond: to
is consistent with the results of pre vious
ers are highlighted in Table 7, with in-
fewer calls. Compensation/levels for
surveys; fire departments continue to
creases seen in nine of the 12 categories
field personnel and dispatchers how
provide higher compensation than any
presented. On the whole, declines in
ever, do hot seem to be dependent on
other group for all positions. New infor-
annual salary levels are seen for EMT-Is
call volume. A similar pattern isseen in
Table 6.
Annual Compensation by ProviderType
Provider
Executive
Administrative
Operations
Div./Ops.
Field
EMT-
Type
Director
Director
Manager
Supervisor
Supervisor
Paramedio: intermediate
Private
68,673
44,942
43,910
36,250
30,783
24,223
19,097
Public
Fire Dept.,
69,204
57,847
58,230
46,825
39,577
33,355
35,077
Cross-trained
Fire Dept.,
57,992
72,363
45,741
34,772
35,407
32,267
27,342
Separate
Third Service
51,205
38,630
37,585
38,021
29,004
26,434
21,880
Other Public
47,781
N/A
42,652
N/A
28,153
25,083
19,500
Hospital
42,978
44,200
34,242
33,933
28,251
24,518
18,134
Other
46,400
24,000
37,167
28,500
28,641
24,822
22,800
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
23,108
which compares mean com-
pensation levels by service-area popula-
Table 7.
tion.
The range between mean starting
Changes in Compensation
salaries and top salaries is presented in
from 1990 to 1991
Table 12. To draw relevant comparisons
Position
1991
1990
of an agency's performance, managers
% Change
Paramedics
and personnel can determine if their
Overall
27,320
service's mean salary falls within the
26,210
+4.2
Private
24,223
24,150
+0.3
range for each position. If so, that agen-
Fire Dept., Combined
33,108
32,080
+3.2
cy can be classified as being within in-
EMTs
dustry norms. For example, if a para-
Overall
21,650
21,000
+3.1
medic earns between $23,385 and
Private
17,227
18,500
-6.9
$30,560, that compensation level could
Fire Dept., Combined
28,029
28,050
-0.1
be considered comparable to the indus-
EMT-Is
Overall
try as a whole. EMS dispatchers typical-
23,108
20,550
+12.4
Private
Thereive annual compensation be-
19,097
20,000
-4.5
Fire Dept., Combined
32,176
tween $19,510 and $26,442; basic EMTs,
26,500
+21.4
Dispatchers
between $20,637 and $24,710; field su-
Overall.
23,460
22,470
+4.4
pervisors, Between $28,226 and $34,972;
Private
21,591
21,500
+0.4
and executive directors, between $46,164
Fire Dept., Combined
28,292
27,940
+1.3
and $61,930. It must be remembered
that.the mean starting salary and the
amean top salary do not represent the
Towest and highest compensation levels
Table 8.
according to the survey, but they are
Faverages of the starting and top salaries
Changes in Compensation from 1987 to 1991
identified for each position.
Percent
Avg. Annual
Age and Tenure
1091
1987
Change
Increase (%)
Another factor that could be expected to
Executive Director
57,929
45,050
affect compensation levels is the em-
+28.6
7.1
Admin Director
47,860
ployee's tenure with the service. Table
39,330
+21.7
5.4
13 includes an analysis of age, tenure
Operations Mgr.
44,660
37,030
+20.6
5.2
and hours worked per week for EMS
Div./Ops. Supervisor
40,422
33,420
+21.0
5.2
employees; pertinent findings include
Field Supervisor
32,492
28,470
+14.1
3.5
the consistency of experience levels
Paramedic
27,320
24,100
+13.4
3.3
within the various categories from year
EMT-Intermediate
23,108
19,840
+16.5
4.1
to year. For example, the average
EMT-Basic
21,650
18,710
+15.7
3.9
private service paramedic has worked
Dispatcher
23,460
19,740
+18.8
4.7
within his current organization for 3.8
Average
years, which is identical with last year's
+18.9
4.7
figures Similarly, the average tenure of
private service dispatchers has been 4.2
have less turnover and experience
years for the past two years. As ex-
lengths of employee service that aver-
of private organizations, particularly
pected, fire departments continue to
within the field-personnel positions.
age two to three times higher than that
In comparing last year's report with
this year's, a trend in a decreasing num-
ber of hours worked per week may be
occurring in the private sector. The
average workweek for a paramedic has
EMT-
shortened by 3.9 hours, from 54 to 50.1
Medical
Training
Basic
Public Info./
First
Dispatcher
hours, while the workweeks of basic
Director
Dir./Officer
Education Officer
Responder
EMTs averaged 6.6 hours shorter, from
17 21,591
30,000
34,762
27,057
56.4 to 49.8 hours. In fact, for the first
N/A
PASTERS antio
time, the number of hours worked per
27,300
47,770
45,681
37,628
week by private paramedics and EMTs
27,500
ENTRO
is lower than that worked by fire-
24,193
31,516
N/A
50,940
49,441
department EMS personnel.
N/A
20,476
21,146
31,000
34,461
Hourly Compensation Comparison
31,050
25,000
20,180
24,812
35,000
26,500
In order to compare various annual-
24,000
N/A
16,401
19,202
compensation levels and take into con-
6,925
31,000
28,000
N/A
13,000
19,422
sideration the length of the workweek,
24,000
24,554
23,109
N/A
the survey's authors calculated an
21,650
23,460
31,947
37,325
33,228
26,875
hourly rate of pay. This calculation was
later
accomplished by dividing the mean
salary by the number of hours worked
OCTOBER 1991 JEMS 75
Table 9.
Annual Compensation by Region
Executive
Administrative
Operations
Div./Ops.
Field
Region
Director
Director
Manager
Supervisor
Supervisor
Paramedic
Intermediate
Region 1-Northeastern
55,423
43,913
32,583
38,283
29,922
25,877
Region 2-Western
62,941
51,983
48,497
42,795
34,652
29,126 no 11:26,060
Region 3-Central
51,768
49,557
42,745
37,439
30,578
26,388
Region 4-Southeastern
56,777
41,804
48,458
39,827
32,429
26,300
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
123,108
assign
Table 10.
Annual Compensation by Emergency-call Volume
Executive
Administrative
Operations
Div./Ops.
Field
EMT-
Call Volume
Director
Director
Manager
Supervisor
Supervisor
Paramedic
Intermediate
Less than 2,000
42,333
42,000
34,864
30,004
27,508
23,588
22,123
2,001 to 5,000
38,533
37,101
34,281
35,500
26,584
25,681
17,911
5,001 to 10,000
49,055
43,50C
46,622
42,605
35,355
30,072
27,767
10,001 to 25,000
61,697
44,845
47,219
43,637
34,454
28,888
21,442
25,001 to 50,000
62,785
51,249
52,418
39,670
34,214
26,827.in have L21,796
50,001 to 100,000
62,500
60,325
42,880
37,894
30,519
27,399koj
22,850
More than 100,000
95,333
74,500
60,400
51,333
39,065
32,61
38,598
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
23,108
Table 11.
Annual Compensation by Service-area Population
Service-area
Executive
Administrative
Operations
Div./Ops.
Field
EMT-
Population
Director
Director
Manager
Supervisor
Supervisor
Paramedic
Intermediate
Less than 20,000
40,000
N/A
30,438
25,316
23,243
24,189
20,967
20,000 to 49,999
37,500
44,731
40,428
34,333
28,919
26,713
25,515
50,000 to 99,999
42,378
40,813
33,618
37,167
27,023
24,790
20,193
100,000 to 249,999
55,695
43,533
50,586
42,810
36,344
29,818
23,512
250,000 to 999,999
59,720
45,730
44,663
38,721
31,626
26,409
22,747
Greater than 1,000,000
82,667
65,800
52,657
47,126
34,429
29,282
29,799
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
123,108
name:
per year and did not differentiate be-
compensation increases. Private EMTs'
1991, figures indicate that the average
tween regular pay and overtime com-
compensation decreased by 6.9 percent
workweek for both cross trained and
pensation. The estimated hourly com-
from 1990 to 1991, largely due to a 12-
separate fire-department paramedics is
pensation changes from 1990 to 1991 for
percent decrease in the number of hours
51.9 hours. Fire-department EMTs
paramedics and basic EMTs are pre-
worked per week. When caiculated on
worked 51.2 hours per week in 1987
sented in Table 14. While private para-
an hourly basis, private EMTs' compen-
and are currently working an average
medics only experienced a 0.3-percent
sation levels effectively ircreased 5.4
53.1 hours per week. Fire departments
increase in annual-compensation levels
percent from, 1990 to 1991, while the
in which EMS is provided by a separate
from the previous year (see Table 7);
combined fire-department EMTs experi-
division demonstrate a shorter average
their hourly compensation increased by
enced a 1.8-percent decrease in hourly
workweek for both paramedics and
8.1 percent, since there were significant-
wage compensation.
EMTs than fire departments that com-
ly fewer hours worked per week. In
In both the 1990 and 1991 surveys,
bine EMS and fire suppression duties.
comparison, compensation for fire-
private-service paramedics experienced
department paramedics increased 3.2
decreasing workweek lengths, while
Women in EMS
percent, and their hourly pay increased
private-sector EMTs significantly de-
For the first time, the 1990 Salary Survey
by 3.3 percent, indicating that there was
creased the length of their workweek in
provided information regarding the stat-
little change in the number of hours
1990. Fire-department paramedics and
us of women in EMS. This information
worked per week.
EMTs have seen little change in the
was provided as an adjunct to show the
An examination of EMT salaries re-
length of their workweeks; in 1987, fire-
use of human resources and to demon-
veals an even wider variance between
department paramedics worked an
strate how women are integrated into
overall compensation levels and hourly
average of 51.2 hours per week, and in
management levels. The results of this
76 JEMS OCTOBER 1991
Table 9.
Employee B
Salaries repr
Annual Compensation by Region
total compe
Executive
Administrative
Operations
Div./Ops.
Field
EMT-
EMT-
Medical
Training
Public Info./
First
personnel; c
Region
Director
Director.
Manager
Supervisor
Supervisor
Peramedic
Intermediate
Basic
Dispatcher
Director
Dir/Officer
Education Officer
considered B
Responder
Ragion 1-Northeastern
55,423
43,913
32,583
38,283
29,922
25,877
19,550
19,819
22,721
33.625
30,000
34,400
are provided
N/A
Region 2-Western
62,941
51,983
48,497
42,795
34,652
29,126
26,060
22,478
25,321
37,669
salaries (se
40,141
33,808
32,000
against infor
Region 3-Central
51,768
49,557
42,745
37,439
30,578
26,388
23,245
21,522
23,615
7,500
35,616
30,143
25,000
vey indicate
Region 4-Southeastem
56,777
41,804
48,458
39,827
32,429
26,300
19,837
21,676
20,094
33,800
35,603
35,506
25,250
ber of orgai
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
23,108
21,650
23,460
31,947
37,325
33,228
26,875
ployee bene:
regarding ti
do not seem
vision of the
Table 10.
year, 93.5 P
Annual Compensation by Emergency-call Volume
fully or pa:
major med
Executive
Administrative
Operations
Div./Ops.
Field
EMT-
EMT-
Medical
Training
Public Info/
First
Other bene
Call Volume
Director
Director
Manager
Supervisor
Supervisor
Paramedic
Intermediate
Basic
Dispatcher
Director
Dir./Officer
Education Officer
Responder
more than ti
Less than 2,000
42,333
42,000
34,864
30,004
27,508
23,588
22,123
21,917
19,267
2,400
34,500
N/A
N/A
ing organiza
201 to 5,000
38,533
37,101
34,281
35,500
26,584
25,681
17,911
18,232
17,934
13,333
40,883
23,000
N/A
(91.3 percen
5201 to 10,000
49,055
43,500
46,622
42,605
35,355
30,072
27,767
21,138
25,879
14,125
41,600
35,601
N/A
percent); un
cent); retire:
12001 to 25,000
61,697
44,845
47,219
43,637
34,454
28,886
21,442
24,753
23,878
21,111
35,824
35,461
N/A
25001 to 50,000
62,785
51,249
52,418
39,670
34,214
26,827
21,796
21,857
21,260
54,866
41,232
percent); pai
36,884
25,250
(81.5 percen
51001 to 100,000
62,500
60,325
42,880
37,894
30,519
27,399
22,850
23,000
23,933
100,000
37,833
24,250
25,000
ments (77.2
Mcre than 100,000
95,333
74,500
60,400
51,333
39,065
32,614
38,598
26,350
33,800
87,750
40,970
28,000
32,000
ance (75 per-
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
23,108
21,650
23,460
31,947
37,325
33,228
26,875
Other Facts
While defini
of care has t
Table11.
ber of years
Annual Compensation by Service-area Population
provides an
vations rega
Service-area
Executive
Administrative
Operations
Div./Ops.
Flold
EMT-
EMT-
Medical
Training
Public Info./
First
of EMS in tì
Population
Director
Director
Manager
Supervisor
Supervisor
Paramedic
Intermediate
Basic
Dispatcher
Director
Dir./Officer
Education Officer
Responder
of this year
Less than 20,000
40,000
N/A
30,438
25,316
23,243
24,189
20,967
19,000
N/A
1,200
30,000
N/A
N/A
advanced lif
21.000 to 49,999
37,500
44,731
40,428
34,333
28,919
26,713
25,515
-24,859
22,600
6,000
39,500
23,000
N/A
sponse has
5:000 to 99,999
42,378
40,813
33,618
37,167
27,023
24,790
20,193
16,755
16,384
0.833
41,766
N/A
N/A
the total nu
120,000 to 249,999
55,695
43,533
50,586
42,810
36,344
29,818
23,512
23,287
23,717
18,100
39,058
36,091
N/A
percent pro
250,000 to 999,999
45,730
44,663
38,721
31,626
26,409
22,747
21,709
23,504
39,516
59,720
36,192
31,109
25,187
only four ou
not have AL
Greater than 1,000,000
20,560
82,667
65,800
52,657
47,126
34,429
29,282
29,799
27,550
91,833
38,488
33,500
32,000
Crew cor
Mean Salary
57,929
47,860
44,660
40,422
32,492
27,320
23,108
21,650
23,460
31,947
37,325
33,228
26,875
of ALS care
of much di
per Tear and did not differentiate be-
compensation increases. Private EMTs'
1991, figures indicate that the average
year's survey indicate a decline in the
Table 12.
tween regular pay and overtime com-
compensation decreased by 6.9 percent
workweek for both cross-trained and
involvement of women in private-sector
pensation. The estimated hourly com-
from 1990 to 1991, largely due to a 12-
separate fire-department paramedics is
EMS services; the percentage of private-
Mean Starting and Top Sa
pensation changes from 1990 to 1991 for
percent decrease in the number of hours
51.9 hours. Fire-department EMTs
sector women who are identified as
paramedics and basic EMTs are pre-
worked per week. When calculated on
field supervisors declined from 20.7 per-
Mean
worked 51.2 hours per week in 1987
sented in Table 14. While private para-
an hourly basis, private EMTs' compen-
cent to 13 percent; the number of
Starting
and are currently working an average
Position
Salary
medics only experienced a 0.3-percent
sation levels effectively increased 5.4
53.1 hours per week. Fire departments
women paramedics in private services
Executive Director
increase in annual-compensation levels
percent from 1990 to 1991, while the
in which EMS is provided by a separate
decreased 5.1 percent; basic EMTs by 5.7
46,164
combined fire-department EMTs experi-
division demonstrate a shorter average
percent; and dispatchers by 11.1 percent.
Administrative Director
41,336
from the previous year (see Table 7),
their hourly compensation increased by
enced a 1.8-percent decrease in hourly
workweek for both paramedics and
There was, however, little difference
Operations Manager
36,889
8.1 percent, since there were significant-
EMTs than fire departments that com-
between fire departments that use cross-
wage compensation.
Division/Operations Supervisor
34,772
ly fewer hours worked per week. In
bine EMS and fire-suppression duties.
trained personnel and the combined
In both the 1990 and 1991 surveys,
Field Supervisor
28,226
fire-department services analyzed last
corrparison, compensation for fire-
private-service paramedics experienced
Paramedic
23,385
department paramedics increased 3.2
decreasing workweek lengths, while
Women in EMS
year. Furthermore, more women appear
EMT-Intermediate
19,220
For the first time, the 1990 Salary Survey
to be involved in fire-department EMS
percent. and their hourly pay increased
private-sector EMTs significantly de-
EMT-Basic
20,637
by 33 percent, indicating that there was
creased the length of their workweek in
provided information regarding the stat-
that separates EMS operations from fire-
Dispatcher
little change in the number of hours
suppression responsibilities. Table 15
19,510
1990. Fire-department paramedics and
us of women in EMS. This information
FAITs have little in the
was provided as an adjunct to show the
identifies the percentage of women em-
Medical Director
21,441
Employee Benefits
Salaries represent one component of the
total compensation package for EMS
Medical
Training
Public Info./
First
personnel; other factors that need to be
Dispatcher
Director
Dir./Officer
Education Officer
Responder
considered are the various benefits that
19,819
22,721
33,625
30,000
are provided in conjunction with those
34,400
N/A
22,478
25,321
37,669
salaries (see Table 16). Comparison
40,141
33,808
32,000
21,522
against information from last year's sur-
23,615
7,500
35,6,16
30,143
25,000
vey indicates that, generally, the num-
21,678
20,094
33,800
35,603
35,506
25,250
ber of organizations that provide em-
21,650
23,460
31,947
37,325
33,228
26,875
ployee benefits has increased. Concerns
regarding the cost of health insurance
do not seem to have impacted the pro-
vision of those benefits; during the past
year, 93.5 percent of the organizations
fully or partially paid for employee
major medical-insurance coverage.
EMT-
Medical
Training
Public Info./
First
Other benefits that are provided by
Basic
Dispatcher
Director
Dir./Officer
Education Officer
Responder
more than three-fourths of the respond-
21,917
19,267
2,400
34,500
N/A
N/A
ing organizations include: life insurance
18,232
17,934
13,333
40,883
23,000
N/A
(91.3 percent); liability insurance (89.1
21,138
25,879
14,125
41,600
35,601.
N/A
percent); uniform allowance (88 per-
24,753
23,878
21,111
35,824
35,461
N/A
cent); retirement or pension plan (85.9
21,857
21,260
54,866
percent); paid seminars and conferences
41,232
36,884
25,250
23,000
23,933
(81.5 percent); EMS tuition reimburse-
100,000
37,833
24,250
25,000
26,350
ments (77.2 percent); and dental insur-
33,800
87,750
40,970
28,000
32,000
ance (75 percent).
0,460,460
31,947
37,325
33,228
26,875
Other Facts
While defining a national standard level
of care has been problematic for a num-
ber of years, the JEMS Salary·Survey
provides an opportunity to make obser-
Medical
vations regarding this and other aspects
Training
Public Info./
First
Basic
Dispatcher
of EMS in the United States. The results
Director
Dir./Officer
Education Officer
Responder
of this year's survey demonstrate that
19,000
N/A
1,200
30,000
N/A
N/A
advanced life support for emergency re-
24,859
22,600
6,000
39,500
23,000
N/A
sponse has become nearly universal; of
16,755
16,384
6,833
41,766
N/A
N/A
the total number of respondents, 95.7
23,287
23,717
18,100
39,056
36,091
N/A
percent provide ALS services. In fact,
21,709
23,504
39,516
36,192
31,109
25,167
only four out of the 92 respondents do
20,560
27,550
91,833
38,488
33,500
32,000
not have ALS capability.
21,650
23,460
31,947
Crew configuration for the delivery
37,325
33,228
26,875
of ALS care continues to be the subject
of much discussion Last year, it was
year's survey indicate a decline in the
Table 12.
involvement of women in private sector
EMS services the percentage of private-
Mean Starting and Top Salaries
sector women who are identified as
field supervisors declined from 20.7 per-
Mean
Mean
centito 13 percent; the number of
Starting
Mean
Top
Position
women paramedics in private services
Salary
Salary
Salary
decreased 5.1 percent; basic EMTs by 5.7
Executive Director
46,164
57,929
61,930
percent and dispatchers by 11.1 percent.
Administrative Director
41,336
47,860
51,521
There was however, little difference
Operations Manager
36,889
44,660
45,835
between fire départments that use cross-
Division/Operations Supervisor
34,772
40,422
43,255
trained personnel and the combined
Field Supervisor
28,226
32,492
34,972
fire department services analyzed last
Paramedic
23,385
years Fur thermore, more women appear
27,320
30,560
EMT-Intermediate
to be involved in fire-department EMS
19,220
23,108
24,650
EMT-Basic
that separates EMS operations from fire-
20,637
21,650
24,710
suppression responsibilities. Table 15
Dispatcher
19,510
23,460
26,442
identifies the percentage of women em-
Medical Director
21,441
31,947
N/A
ployed as field supervisors, paramedics,
Training Dir./Officer
34,301
37,325
41,632
basic EMTs and dispatchers
Public Info./Education Officer
27,819
33,228
30,421
among the various types of services.
First Responder
23,085
26,875
31,441
OCTOBER 1991 JEMS 77
Table 13.
Mean Age, Tenure and Hours Worked per Week
EXECUTIVE
ADMINISTRATIVE
OPERATIONS
DIV./OPS.
PROVIDER TYPE
DIRECTOR
DIRECTOR
MANAGER
SUPERVISOR
FIELD SUPERVISOR
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs.
Private
40.4
9.0
46.4
37.6
5.2
43.1
36.9
7.8
47.0
35.4 6.0 47.9
31.0 5.8 51,277
Public
FD., Cross-trained
48.1
14.5
41.0
49.2 19.7 39.9
46.4 16.4 40.0
43.2 18.8 44.8
39.1 15.1 6
FD., Separate
45.0 21.0 40.0
48.0 23.5 40.0
42.8 18.8 40.0
46.3 20.7 49.7
40.6 15.6
Third Service
42.4 9.6 44.4
42.3 10.5 42.6
40.5 11.3 42.6
33.8 10.5 48.3
34.9 9.0
Other Public
40.0 21.0 40.0
N/A N/A N/A
42.5 13.0 40.0
N/A N/A N/A
38.3 13.0
Hospital
39.8 8.7 44.6
37.0 10.7 50.3
32.0 8.6 44.3
34.0 9.7 51.3
33.1
6.8
Other
38.8 6.2 45.0
35.0 7.0 45.0
36.2 12.0 46.3
38.0 10.0 45.0
33.5
Mean
42.3 10.7 44.1
41.0 10.5 42.8
40.1 11.7 43.2
39.0 13.0 46.9
35.3 49.8
EMT-
MEDICAL
PROVIDER TYPE
PARAMEDIC
INTERMEDIATE
EMT-BASIC
DISPATCHER
DIRECTOR
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Private
28.6' 3.8 50.1
28.2 2.9 51.3
26.0 3.5 49.8
29.0 4.2 42.8
38.7 5.0 5.5'
Public
4
FD., Cross-trained
32.3 10.1 52.7
32.6 10.5 55.0
30.7 8.9 53.1
32.8 9.9 42.0
46.0 4.8 19.1
FD.; Separate
32.8 7.8 48.8
31.7 10.7 51.0
35.3 14.7 52.7
37.3 6.0 40.0
40.0 4.0 5.0
Third Service
30.0 6.0 52.2
27.8 3.2 59.3
27.9 4.5 47.3
35.0 - 7.2 41.5
41.9 7.6 14.6
Other Public
31.3 4.5 53.0
30.0 N/A 48.0
38.5 18.0 49.3
31.0 N/A 42.7
N/A N/A N/A
Hospital
29.1 4.8 46.6
27.8 4.5 47.5
29.8 5.2 41.2
33.5 7.2 43.3
39.0 7.0 5.3
Other
29.0 3.5 47.0
25.5 2.0 41.0
21.0 1.0 40.0
24.0 3.0 42.0
37.0 6.0 20.0
Mean
30.2 6.0 50.7
29.0 5.0 52.1
29.1 6.2 49.2
31.9 6.5 42.2
41.9
6.0
14.6
TRAINING
PUBLIC INFO./
FIRST
PROVIDER TYPE
DIR/OFFICER
EDUCATION OFFICER
RESPONDER
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Age Yrs. Hr/wk
Private
33.9 7.1 48.1
31.1 4.6 47.4
N/A N/A N/A
Public
Program
FD., Cross-trained
43.0 17.0 40.0
39.1 12.3 41.1
42.5 19.0 50.0
FD., Separate
35.0 15.0 40.0
38.5 9.0 40.0
N/A N/A N/A
Third Service
38.0' 9.0 43.2
37.3 10.8 45.7
40.0 10.0 42.0
BBB
Other Public
31.0 N/A 44.0
26.0 N/A 40.0
N/A N/A N/A
Hospital
36.0 8.0 44.7
N/A 10.0 40.0
N/A N/A N/A
Other
33.5 6.0 46.0
36.0 3.0 47.0
N/A 2.0 N/A
Mean
37.7 10.8 43.8
35.9 9.2 43.7
41.7 12.5 48.0
Table 14.
(Ify:
Hourly Wage Comparison
PROVIDER
PARAMEDIC
EMT-BASIC
1991
1990*
Percentage
1991
1990
Percentage
Private
9.30
8.60
+8.1
6.65
6,31
Public
Fire Dept., Combined
12.27
11.88
3.3
10.17
10.36
Fire Dept., Cross-trained
12.17
N/A
N/A
10,47
N/A
Fire Dept., Separate
12.72
N/A
N/A
8.83
Third Service
9.74
9.71
0,3
7.08
Other Public
9.10
7.69
+18.4
641
Hospital
19.10.12
$9.99
666
629
Other
10.16
N/A
N/A
N/A
Meany's
036
10.07
obtained in October 1989
78 JEMS OCTOBER 1991
reported that 68.6 percent of the ALS
services provided two paramedics. But
a alight decline is revealed this year,
with 64.7 percent of the services provid-
About the Salary Survey
ing ALS with two paramedics. The one-
paramedic and one-EMT configuration
Every survey has its limitations: Survey respondents represent only a small
increased from 27.9 percent to 32.9 per-
portion of the potential subjects to be analyzed. Also, the size and makeup of
cent, while those services that use more
the sample is a key constraint to the survey process.
than two paramedics on a crew de-
The JEMS Salary Survey is not designed to be "scientific." For one thing a
creased from 3.5 percent to 2.4 percent.
scientific survey would require a tremendous amount of resources and money.
These figures continue to indicate that
Moreover, it would necessitate the use of stratified, random-sampling tech-
approxima one-third of the para-
niques a process.that dictates that a random sampling be obtained for each
medic services now employ the one-
subgroup (e.g., provider type or region) to elicit responses that reflect each
paramedi and one EMT configuration,
subgroup 8 proportional representation within the industry
while two thirds opt for at least two
The methodology employed for the JEMS Salary Survey has been solely.
baramedics on each ALS unit.
to monitor trends. Surveys are sent to essentially the same group of
Jearly wo-thirds of the organiza-
EMS providers each year. By monitoring their compensation levels, we can
Hons provide preattival instructions to
draw conclusions about trends that are applicable to the industry
callers; whichtisidentical to last year's
the tables this vey reflect changes in compensation levels
figures. Of those services that offer pre-
among survey respondents While this not possible to say that these salaries
anival instructions, an impressive
apply20 the entire industry, it is expected that the overall mean for each cate
change has occurred; While last year, 69
the industry.
percent indicated that they allow dis-
Readers are cautioned against attempting to explain variations within the
patchers to Improvise prearrival instruc-
subgroups For example, an inappropriate conclusion might be drawn that
tions over the phone, this year, only 37.8
emedical directors who work for fire, departments make more money than
percent allow dispatchers to improvise.
those who work for private services; this generalization cannot be supported
by the data Since the sample was not random in nature, it is inappropriate to
Conclusion
assume that relationships exist among subgroups. For this reason, extreme
After conducting four surveys that ana-
care was taken to avoid conjecture within the text of this article.
lyze EMS compensation and informa-
Calculations
tion, it is possible to discuss trends and
report observations. Information
The survey form requested specific information regarding compensation for
gleaned from these four surveys indi-
each job position. Data regarding the starting salary, top salary and the actual
cates that stabilization may be occur-
average wages paid to personnel were then collected. From this information,
ring in the EMS work force; indicators
the mean compensation levels were calculated.
that support this conclusion are the
The mean salary represents the arithmetic average of the sample group. It is
steady not precipitous-increases
Iderived by calculating the answers provided in response to a particular ques-
in-compensation levels, decrease in
tion Cross tabulation of data is conducted to describe various subgroups and
number of hours worked and the grad-
to cull the compensation.leve by provider type region, call volume, etoil he
a increases in personnel tenure within
accuracy of these subgroup compensation levels is based largely on ther
group' sample
organizations
The difference between the hourly
When ding through the article and charts, consider the following:
compensation of fire department and
aindhumbers velbeen rounded off within the text to make it easierito
private service personnel continues to
ead When totalled some percentages do not equal:100 percent due to
narrow This is likely due to the contin-
founding off of the subgroups to the nearest one-tenth of 1 percent.
ued fiscal constraints among local gov-
The number of respondents cited within certain tables may not equal 92 (the
emments and the private sector's need
number of survey respondents) due to the fact that some services didinot
answerall of the questions.
to compete with fire departments for
EMS personnel.
Information is sometimes reflected as N/A (not available) because the perti
*Actual compensation levels for para-
nent question was not answered by any member of the subgroup being ana-
lyzed
medics, EMTs and dispatchers demon-
strate increases comparable to last
years inflation rate. If this increase is
combined with the reduced workweek,
Table 15
however, the effective hourly compen-
sation has exceeded the annual in-
Women in EMS: Percentage by Category
flation rate for private-sector para-
medics and EMTs by a considerable
Provider
Field
EMT-
EMT-
margin
Type
Supervisor
Paramedic
Intermediate
Basic
Dispatcher
In summary, there are strong indica-
Private
13.0
29.0
24.0
20.0
38.0
tions of a maturing and stable work
Public
force within the EMS industry. Within
Fire Dept., Cross-trained
3.0
6.0
0.0
3.0
37.0
the last four years, the average age of
Fire Dept., Separate
8.0
27.0
12.0
1.0
50.0
Third Service
he basic EMT has increased by 1.2
3.0
11.0
28.0
4.0
39.0
Other Public
5.0
11.0
29.0
6.0
years, and tenure within organizations
13.0
Hospital
10.0
19.0
23.0
15.0
33.0
has lengthened by 1.6 years. The aver-
Other
14.0
31.0
30.0
0.0
53.0
age paramedic is 1.5 years older than
Mean
5.0
16.0
15.0
5.0
38.0
continued on page 83
OCTOBER 1991 JEMS 79
EMS SALARY SURVEY
Table 16.
continued from page 79
Benefits Provided
verage paramedic was in 1987 and
1991
1990
worked for the organization six-
Benefits
Percentage Percentage
S of a year longer. In addition, the
Major medical-employee
93.5
90,7
$ of compensation and the provi-
Life Insurance
91.3
84.5
of benefits have consistently, but
Liability insurance
89.1
81.4
ramatically, increased.
11
Uniform allowance
88.0
83.5
Retirement or pension plan
85.9
79.4
Paid seminars and conferences
81.5
72.2
Tuition reimbursement, EMS only
77.2
78.4
ard Keller is a partner with Fitch &
Dental Insurance
75.0
67.0
ciates Inc., a national health-care
Major medical-family
72.8
71.1
:ulting firm specializing in EMS
Employee assistance plan
68.5
74,2
the air-medical transportation
Short-term disability
58.7
53.6
stry. He specializes in EMS system
Long-term disability
54.3
62.9
gn, operations, resource utilization,
Education Incentive, non-EMS courses
48.9
56.7
finance and reimbursement.
Optical insurance
44.6
39.2
30.4
27.8
iel Yameen is an associate of Fitch
Shift differential
ssociates Inc. He supports the
Financial incentive programs
27.2
23.7
is research and data-analysis activi-
Meal allowance
18.5 15.5
and specializes in the development
Profit sharing
13.0
10.3
implementation of marketing pro-
ns.
EMS Marketers:
SAN FRANCISCO AMBULANCE
Γ-A-R-G-E-T
SANFRANCISCO AMBULANCE SERVICE, is seeking a qualified
individual to take overthe responsibilities of Director of Operations for its
Director of
Alameda County affiliate company, Acme Western Ambulance Service.
four Audience!
Operations
The Director of Operations oversees a large B.L.S. fleet of 26 vehicles
which includes ambulances, wheelchair units and support vehicles. There
A list of more than 17,000
is a staff of 70+ people, with a well-developed support structure of training
evaluators, dedicated field supervisors, administrative supervisor, human
ambulance services from all
resource manager, and clerical assistant. The Director of Operations also
50 states is now available
manages the on-site fleet maintenance facility.
from The National Association
We offer the right individual a progressive work environment with state-of-the-art
of State EMS Directors.
equipment and facilities. We have a centralized communications center that uses the
McDonnell Douglas CAD. Corporate support includes purchasing, finance, payroll,
marketing, quality assurance, medical director, in-house training division and critical care
For rental information, contact
transport program.
The National Association of
The ideal candidate will have a history of progressive responsibilities in the private
ambulance sector including: field care (EMT or Paramedic), supervisor, and a minimum
State EMS Directors at
of two years' management experience in a similar type of operation. A college degree is
619/431-7054
preferred, but can be substituted with additional experience.
San Francisco Ambulance Service offers a comprehensive pay and benefit package, 401K
plan, moving allowance, bonus plan, car allowance and a position of increasing responsi-
bility with a positive growth company.
Qualified applicants should contact:
Kim E. Johansen
Chief Operating Officer
NATIONAL ASSOCIATION OF
San Francisco Ambulance Service
State Emergency Medical
2829 California Street
San Francisco, CA 94115
Services Directors
(415) 922-9400
For More Information Circle #55 on Reader Service Card
OCTOBER 1991 JEMS 83
THE WHITE HOUSE
WASHINGTON
DATE: 4/29
TO: Joe
FROM: DAVID J. BEIGHTOL A
Special Assistant to the President for
Intergovernmental Affairs
Room 160, OEOB, x7170
FYI
Appropriate Action
Let's Discuss
Per Our Conversation
Per Your Request
Please Return
COMMENTS:
The Gov. thinks it would
he good for POTUS to
Add Her Same montion 1
the attAched into one 1
shio Speeches. POTUS Sincel
this Twos
GAIL Wilensky has more details
THE WHITE HOUSE
WASHINGTON
April 15, 1992
MEMORANDUM FOR SAMUEL K. SKINNER
FROM:
GAIL R. WILENSKY
SUBJECT:
Ohio Medicaid Waiver
Ohio Gov. Voinovich in early February asked the President
for help on a number of Ohio problems, including one with the
Dayton Area Health Plan (DAHP). Dayton covers its Medicaid
recipients through the three Health Maintenance Organizations
(HMOs) in the DAHP. The organization received a waiver from
HHS three years ago with a deadline for compliance of April
30th. The Governor requested a new waiver from Secretary
Sullivan for the DAHP so that it might continue to serve the
community. Secretary Sullivan reported that current law allows
his Department to waive these standards for only three years.
You wrote to Gov. Voinovich, explaining the statutory
restrictions covering these waivers.
Ohio now has a legislative solution to its problem. H.R.
4572 waiving the "75/25 rule" for the DAHP was passed by both
the House and Senate, April 9th and 10th respectively. This
waiver allows the three HMOs in the DAHP to continue to operate
through January 31, 1994 despite their non-compliance with the
rule which requires 25 percent of enrollees in an HMO
contracting with Medicaid to be private patients.
As of this afternoon, the bill has not yet been received
by the Clerk's office, however they are expecting it soon.
Once signed, Voinovich will be satisfied on this issue.
The 25 percent rule is a bad proxy for quality assurance
which hinders Medicaid HMOs in Ohio as well as in other States.
Before I left HCFA, I asked the Medicaid Bureau to develop some
direct measures of quality assurance that could be used in
place of the 25 percent rule. As soon as these are available
(probably by summer or early fall), we should consider
proposing corrective legislation.
CC: Clayton Yeutter
THE WHITE HOUSE
(Duggan/Simon)
WASHINGTON
April 28, 1992
Draft Four
Broadcast
PRESIDENTIAL REMARKS:
OHIO BROADCASTERS ASSN.
COLUMBUS, OHIO
THURSDAY, APRIL 30, 1992
[time]
[Acknowledgments] Let me begin with a few words about the
great man who gave his name to this city. Christopher Columbus
dared to explore far beyond the horizons of his continent -- and
he discovered a new world. None of us would be here had it not
been for his vision.
In much the same manner, we wouldn't be holding a convention
of broadcasters it not been for other daring individuals --
world almanos
scientific prodigies like DeForest and Marconi, business geniuses
92
201
like Sarnoff and Paley.
p.
356
There's a lesson here we must not lose on our young people
today. It's important to remember, against the background of
centuries of human history, just how new this thing called
The year
broadcasting is. Around the time my father was born here in the
COLUMIS DISPATEH
just afew blocks East Broad Street,
2-8-90
city of Columbus, Marconi was in Europe bringing his dreams to
world
their first fruition. It was just four years before I was born
Almanae 92
that the first radio station went on the air in the United
KOKA 1920
see
file
States. And when I was growing up, the notion of pictures moving
over the airwaves was only a wild and distant dream. I see many
few
in the audience now nodding that you've lived the same experience
-- and I wouldn't exactly say any of us are Methuselahs.
Yes, telecommunications is still in its infancy. And it is
taking its first baby steps hand in hand with another thing
THE WHITE HOUSE
that's bright and new in human WASHINGTON history: the worldwide spread of
freedom and democracy. In many lands of Eastern Europe, of Asia,
of Africa and South America, people have thrown off the old ways
of dictatorship and command economies. They are enjoying true
self-government and economic freedom for the very first time.
When men like Washington and Madison gave us our system of
freedom and self-government, they put America in the vanguard of
historic change. It would be tragic if now -- as most of the
world embraces the new order of freedom -- if now America should
lose its sense of leadership and lag behind.
Leaders don't lead sheltered lives -- they take risks. That
is the essence of the reforms we need to carry our ideals and our
leadership into the new century. We must work for more open
trade -- and to fight protectionism at home and abroad. We must
pull ourselves out of the rut of excessive bureaucracy -- and
renew the spirit and practice of limited government.
Powerful popular movements are underway to change this
country for the better. In community after community, we see
parents standing up to the bureaucratic establishment --
asserting their rights in their children's education. A citizens
movement is fighting to limit the terms of congressmen and make
them more accountable. I support both these movements, and I'm
working hard also for another important reform: to stop the
epidemic of nuisance lawsuits. Our climate of hair-trigger
litigation makes a mockery of justice. We need to spend more
time helping one another and less time suing each other. 11
THE WHITB HOUSE
WASHINGTON
Increasingly, the people are showing their anger and
impatience with the heavy hidden taxes of government regulation.
For far too long, Congress has been levying these hidden taxes.
For far too long, Congress has imposed arbitrary mandates on the
the American people and made unelected bureaucracies the
regulatory equivalent of prosecutor, judge and jury. For far too
long, Congress and the bureaucracies it creates have evaluated
their own actions on the basis of intentions -- while sternly
judging the people they regulate on the basis of results.
Consider just a few examples of the burden of regulation:
city of columbers
Mik
Pompalli
Here in Columbus, the city government has projected that
645-6181 over the next decade its cost of compliance with federal
1.6
856 per
environmental regulations alone would be one billion dollars.
10%
year per
Now, this is for a community whose entire city budget last year household
V
23% was $591 million.
of city lardget A
small business owner from Bedford, New York, wrote to me
recently. He runs an ambulance service, and he bid for a
contract with the local Veterans Administration hospital. He
estimates that wage-rate rules mandated by Congress inflate the
cost of an ambulance call from less than $200 to almost $7,000.
In Juneau, Alaska, a local charity, the St. Vincent de Paul
Society, wanted to build an addition to its shelter for the
homeless. The shelter is surrounded by concrete, on a city block
that includes two car dealerships, a plumbing store and a storage
business. But the building project was delayed for a whole year
because bureaucrats erroneously declared the site a "wetland."
THE WHITE HOUSE
WASHINGTON
[other real-life examples, preferably some from Ohio]
Yesterday in Washington, I took some new actions to breathe
new life into our ability to compete, to innovate, to create
jobs. I've extended the moratorium on regulations that I had
instituted in my State of the Union Address.
Just since the moratorium began three months ago, we've
already yielded big benefits for the American people. We
estimate that our reforms already in place will save consumers
about $20 billion a year -- and that's just a down payment on
savings to come. [examples, preferably some from Ohio]
During the first 90 days of our accelerated reform efforts,
every federal agency I asked responded with action to ease the
Fee
burden of unnecessary regulation. And let me take this occasion
Release to salute the Federal Communications Commission for its action to
3-12-92
relax needless restrictions on ownership of radio stations.
That's a very welcome reform. Al Sikes, the FCC chairman,
believes in free markets and innovation -- and it's clear to me
that is the right direction.
Looking forward, one can't help but see that new
telecommunications technologies will revolutionize science,
education, and the way we do business. They'll be an important
boon to families: The day is coming when mothers and fathers
will be able to spend more time at home with their children even
as they make ever more productive contributions to our economy.
In harmony with with regulatory reform is the movement to
sell off government-run facilities that would serve the public
5
far more fairly and efficiently if operated by competitive
enterprises. Next week I'll present a major initiative to help
state and local governments turn over some key services to the
free market where they belong. We want to help more people enjoy
cheaper and better waste-water treatment service by letting
businesses with real market incentives do the job.
Privatizing state enterprises is one of the great hopes for
economic growth and rebirth in such places as Mexico and Russia.
Surely it would be a sad mistake if we missed our opportunities
to spur efficiency and innovation in the same manner right here
in our own country.
of one thing, however, I am certain: The status quo will
not yield without a fight.
And another issue that highlights another issue where the
divide between popular reformers and protectors of the status quo
is campaign financing. I've asked Congress repeatedly to reform
the campaign financing system -- I want the total elimination of
the special interest PACs. But the entrenched leadership in
Congress is proposing instead a bill that would require broadcast
stations to carry [taxpayer subsidized] advertising for a be that
candidates who receive federal matching funds. The upshot would
be to further protect incumbents. And I think you'll agree --
the last thing this country needs is more public expenditure to
perpetuate the tenure of incumbents in Congress. So let me
repeat: I want real reform. If Congress sends me another Their
"incumbent protection bill" -- I'll veto it.
a taxpayer-frenced incurrent protection Scheme
6
This is springtime -- and a young man's thoughts turn -- and
his radio dial turns -- to baseball. So I'd like to leave you
with a favorite story about the legendary Yogi Berra. In Yogi's
Boseball
hometown of St. Louis, the local people organized a celebration
anecdotes in his honor at the old Sportsman's Park. Yogi quavered with
p'
emotion as he stepped up to speak. "First," he said, "from the
207
bottom of my heart, let me thank all the people who have made
this day necessary." III
The point of the story is this: The freedom-loving people
in this country -- people of ingenuity and enterprise, people in
leading-edge industries like your own -- are not merely making
renewal of limited government possible. 11 They're making it
necessary. 11 They're making it inevitable. 11 Technological
advance is accelerating so rapidly that the old guard in Congress
and the bureaucracy can hope only in vain to keep up.
We've reached a turning point. 11 We're on the verge of
watershed reforms to make government stop stifling people who
want to use their freedoms to create, to produce, to serve.
The day is coming when enterprisers and innovators like
yourselves will lead us to new horizons. The day is coming when
dreams not yet imagined will come true. The day is coming -- and
we will not be stopped.
Thank you, and may God bless the United States of America.
#
#
#
FROM: HUD PUBLIC AFFAIRS-NEWS
TO:
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APR 29, 1992 11:58AM #594 P.01
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W. H. RESEARCH
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FROM:HUD PUBLIC AFFAIRS-NEWS
TO:
2024566218
APR 29, 1992 11:59AM #594 P.02
WALL STREET JOURNAL
MONDAY, JULY 8. 1991
Free Housing From Environmental Snobs
By JACK KEMP
Ashley, and the 20 other members of the
A widely reported study by the U.S.
Broad new environmental restrictions
advisory commission will present Presi-
Census Bureau recently revealed that 57%
are being imposed at every level of gov-
dent Bush and me with their findings in a
of American families are unable to buy a
ernment. The duplication of effort, ambig-
report entitled. "Not In My Back Yard:
median-priced home in their community.
Regulatory Barriers to Affordable Hous-
uous requirements and heavy administra-
Just 3% of all renters have the financial
ing."
tive burden have vastly complicated the
wherewithal to become homeowners, and
The Kean-Ashley commission has deter-
task of developing low-cost housing.
the figures are even worse for black and
mined that overall housing affordability
Moreover, the commission suggests that
Hispanic renters. 98% of whom cannot af-
opponents of low- and moderate-income
actually improved during the 1980s. Lower
ford to buy a median-priced home.
interest rates and inflation, combined with
housing development are learning to use
But the chief cause of this alarming
a booming economy. easily boosted hous-
environmental concerns as a cover for ex-
trend has gone largely unreported. Hous-
ing affordability over its dismal 1970s
clusionary zoning. An environmental chal-
ing is quietly becoming the most heavily
levels. But in those areas of the country
lenge is a swift and simple mechanism for
regulated sector of the American economy.
where regulatory policy has gotten out of
delaying or even terminating new con-
At every level of government, a stealth bu-
hand, like California and much of the
struction. And developers who must carry
reaucracy is choking off the supply of af.
Northeast, there is an escalating afforda-
the costs of waiting out government Inves-
fordable housing for low- and middle-in-
bility crisis.
tigations will ultimately pass the expense
come Americans and adding an Invisible
In Southern California's Orange County,
on to consumers, conveniently pricing the
prémium to the cost of all housing.
the Rube Goldberg-inspired approval and
homes out of reach of buyers deemed "un-
Exorbitant Prices
permits process alone adds $20,000 to the
desirable" by the local community.
cost of a single-family unit. That's a pen-
On the theory that the need for afford-
Young people cannot afford homes in
alty tax on homeownership, Imposing an
able housing is at least as important as the
the towns where they grew up. Older cou-
equal and unnecessary burden on rich and
need to protect, say, the tiger salamander.
ples cannot afford to rent apartments near
poor alike. A zoning law in Ring County,
the commission recommends that the fed-
their children. Millions of Americans are
Wash., allows just one house per five acres
eral government, states and localities de-
compelled to live far from their work-
over a 1,500 square-mile swath of land. Not
sign housing impact statements to assess
places, to accept hours-long commutes,
surprisingly, last year the county recorded
the consequences of proposed environmen-
and to pay exorbitant prices for the privi-
the largest one-year jump in housing
tal rules. These would balance the perva.
lege.
prices nationwide.
sive (environmental impact statements
Developers don't like it and consumers
It doesn't take a Ph.D in economics to
which have 80 hamstrung the housing In-
can't afford It, yet a growing web of over-
understand the consequences. Builders in-
dustry.
lapping environmental and wetlands regu-
creasingly build for the upper end of the
Congress can get the ball rolling by per-
lations, zoning laws, rent control ordi-
housing market. knowing that high-Income
mitting HUD to condition federal housing
nances. construction permits, and impact
families can absorb the steep costs of gov-
assistance to the states on progress toward
and construction fees is distorting the mar-
ernment intervention.
reducing excessive regulation. Last year's
ket and sending building costs and land
In urban areas, rent control is a partic-
otherwise revolutionary National Afford-
prices spiraling upwards. The effect is to
ularly Invidious form of housing discrimi-
able Housing Act specifically prohibits
keep new affordable housing out ofestab-
nation against the poor. A large body of
such powerful federal action. The Treasury
lished neighborhoods. reflecting the notori-
research indicates that rent control pri-
Department's Low Income Housing Tax
ous NIMBY syndrome (Not in My Back
Yard). Regulatory horror stories abound.
marily benefits middle- and even upper-In-
Credit and Mortgage Revenue Bonds
come households, reducing housing mobil-
(MRBs) should also be tied to state action
In Mercer County, N.J., before work
ity and eroding the stock of available hous-
on the affordable housing front.
can commence on a new housing subdivi-
Ing. Well-off residents are encouraged to
Regulatory Barriers
sion. the project must clear 11 separate re-
remain in their rent-controlled apartments.
But Washington alone cannot clear
views from nine different agencies, includ-
locking lower-income families out of the
away the thicket of regulatory barriers to
ing seven reviews just on storm drainage.
housing market. Some 10 million Ameri-
affordable housing and homeownership.
As the state's director of housing and de-
cans Ilve in communities with such
The states must make this cause their
velopment notes sardonically, even "jet
counter-productive rent control ordi-
own. Gov. Kean, Rep. Ashley and their col-
fighter planes and moon rockets get by
nances.
leagues recommend that states define a
with triple redundant control systems."
Environmental protection Is another
specific time limit for zoning and other re-
Developers estimate that, in New Jersey,
well-meaning public policy which wreaks
views and Impose uniform standards for
government regulations add as much as
havoc on the housing market. The Kean-
impact fees. States should also move
25% to 35% percent to the cost of every
Ashley commission indicates that overzeal-
quickly to merge their multiple housing bu.
house they build.
ous environmental regulation is a primary
reaucracies into streamlined, stand-alone
In Bridgehampton, Long Island, the dis-
threat to affordable housing. Clearly. pres-
agencies.
covery of a single, tiny tiger salamander
ervation of the environment Is a top na-
"Not In My Back Yard" is a firebell in
crawling along the ground led to a one-
tional priority. But when environmental
the night. calling upon government at all
Extended Page
2.
1
LIGHTING alung THE ground leu W a une-
tional priority, DUL when environmental
the night, casing upon government at all
year delay in construction of a 102-acre
concerns are not properly balanced against
levels to reform housing regulation before
subdivision, part of which was set aside for
other vital social demands, the results can
the traditional upward mobility of Ameri-
low-cost housing. The costly Interference
be tragic.
can society is seriously threatened.
by eco-bureaucrats eventually forced the
Consider the case of a critically needed
developer to slash the number of afford-
homeless shelter InJuneau, Ala. built by a
But this is not just another in a long line
able housing units by half.
Catholic group. Construction was put on
of apocalyptic government studies making
hold for more than a year when environ-
gloomy forecasts about America's future.
Shortly after 1 became secretary of
mental regulations collided with local zon-
On the contrary. the commission has un-
Housing and Urban Development, Prest-
dent Bush asked me to establish a commis-
ing ordinances. The city of Juneau re-
covered a dramatic opportunity to slash
sion to investigate these regulatory bar-
quired that a parking lot be built along
the cost of housing in the 1990s. If we do not
riers to affordable housing. I asked former
with the shelter. But the quarter-acre lot
seize this opportunity, then the question
New Jersey governor Tom Kean to chair
purchased for that purpose was declared a
will be not "what" are the barriers to af-
the commission. Today, Mr. Kean, his vice
"wetland" and the entire project halted by
fordable housing but "who" they are.
chairman, former Rep. Thomas Ludlow
the Army Corps of Engineers. While home-
less families went without decent housing.
the patch of wetland was safe and sound,
Mr. Kemp is secretary of Housing and
Surely our environmental laws' were not
Urban Development.
meant to operate with such single-minded
callousness.
FROM: HUD PUBLIC AFFAIRS-NEWS
TO:
2024566218
APR 29, 1992 12:00PM #594 P.03
KEMP COMMISSION REPORT 1991
Environmental Protection Regulation
administrative procedures for regulating their use,
Environmental Protection Agency (EPA), the Army
lead to adverse impacts on housing affordability.
Corps of Engineers (the Corps), the Soil Conserva-
tion Service, and the Fish and Wildlife Service
Definitional Problems in
(FWS)-joined to produce The Federal Manual for
Identifying and Delineating Jurisdictional Wetlands.
Wetlands Regulations
Instead of narrowing the definition of wetlands, this
manual takes an even more inclusive view: to be
Most people think of wetlands in commonsense
defined as a wetland, the soil need be only tempo-
terms: ponds. swamps, bogs, marshy coastal areas,
rarily saturated with water, in some instances.
or bottomland forests. In reality, the scientific
The effect of this expanded definition is that more
definition is highly technical and is based on
private, buildable land-land that is totally dry
hydrology, soil condition, and specific types of
nearly all of the time-can be declared a wetland,
water-loving vegetation. Wetlands are often identi-
and its use for development denied.
fied by the presence of plants found in soil that is,
at a minimum. periodically saturated or covered
In general, wetlands statutes tend not to take land-
with water. In terms of their physical appearance,
use issues into account. Typically, existing statutes
however, wetlands are as varied as America's
do not differentiate between critical and ecologically
geography.
low-value wetlands. If the statutes were to make
this distinction, then the development of a low-value
Because the protection of wetlands has resulted in
wetlands might be permitted for some important
widespread restrictions on residential development.
public purpose. Similarly, most environmental
advocates of affordable housing have long sought
protection statutes that deal with wetlands do not
10 modify the definition of wetlands to exclude a
effectively differentiate between publicly and
number of naturally occurring soil conditions that
privately owned land.
are largely unrelated to water quality and, thus,
not within the purview of Section 404 of the Clean
The problems that arise as a result of the lack of
Water Act (CWA). In 1989. the four Federal
land-use distinctions in wetlands regulations are
agencies that regulate the use of wetlands-the
exemplified by the predicament that builders of a
Juncau, Alaska, homeless shelter faced. In May
1989. the St. Vincent de Paul Society. a public
charity, began planning for the construction of a
six-unit homeless shelter for families in downtown
Federal permits for wetlands activities
Juneau. To meet a city requirement that parking
are increasingly difficult to get. In
spaces be available at the shelter, the Society pur-
the San Francisco District of the
chased a vacant lot that adjoined the shelter property
Corps of Engineers, for example,
and applied to the Corps for a permit to pave.
the Bay Planning Coalition has com-
Because this quarter-acre lot was designated a
piled statistics from the Government
"wetland," however, the Corps would not issue
showing that, in a recent 5-year
the permit. Without the permit, there could be no
period, only two "major" wetland
parking lot, and, without the parking lot, the city
permits have been issued by the
would not issue a building permit for the shelter.
It took more than a year of administrative maneuver-
Corps
ing before the Corps and the city issued the neces-
Robert Briscoe, Land Use
sary permits and construction could begin on both
Attorney
parking lot and shelter. Had the wetlands permitting
San Francisco, CA
regulations recognized distinctions with respect to
the public benefit to he derived from the intended
land use, considerable time and money would have
4-4
FROM:HUD PUBLIC AFFAIRS-NEWS
TO:
2024566218
APR 29, 1992 12:01PM #594 P.04
Chapter 4
been saved, and homeless families could have been
conflict, overlapping jurisdictions render the permit-
sheltered much sooner.
ting process unnecessarily complicated and lengthy,
obliging applicants to negotiate with both Federal
Jurisdictional Problems
agencies in hopes for a speedy, positive result. In
addition, the FWS, the Soil Conservation Service,
With the Federal Wetlands
and the National Marine Fisheries Service are
Regulation
sometimes consulted on matters pertaining to
individual permit applications. The need to obtain
The Clean Water Act has a number of important
both State and Federal permits often complicates
functions pertaining to the "waters of the United
the situation.
States," including protecting navigation, water
quality, and wetlands. Congress entrusted this
statute's complex and wide-ranging mission princi-
The Complexity of the Federal
pally to the EPA and the Corps. Section 404 of the
Permitting Process
CWA is the legislative focal point of current Federal
wetlands protection efforts. It authorizes the Corps
Although concerns about keeping the Nation's
to issue permits for filling and subsequent develop-
water supply clean are by no means new, environ-
ment of wetlands, and requires the Corps to follow
mental protection became a clear national priority
EPA guidelines when issuing these permits. It also
with the passage of the National Environmental
authorizes EPA to veto any Corps decision to issue
Protection Act of 1969. NEPA introduced the
a permit for use of wetlands.
environmental impact statement into the Federal
regulatory process by requiring assessments of the
Their overlapping jurisdictions occasionally produce
potential impact of federally financed projects on
conflicts between EPA and the Corps, Resolving
the environment. These assessments have become
these interagency conflicts can prove time-consum-
a time-consuming and costly adjunct to the Federal
ing and expensive for applicants. Sometimes, such
wetlands permitting process.
conflicts lead to extensive litigation. such as the
1987 Attleboro Mall case. which upheld the EPA's
Designed to ensure adequate protection of aquatic
broad authority to oversee, and even veto, the Corps'
ecosystems, the Federal permitting process for
permit approvals. Even without interagency
developing a wetland is often arduous and costly
In 1986, a Wareham, Massachusetts, businessman wished to expand his sales and
storage facilities onto adjacent property. Since a portion of the proposed building
site contained wetlands, he consulted the local conservation commission, hired
environmental engineers, and applied for Federal, State, and local permits. Four years
and $173,100 later, construction had not begun on the planned building annex. Much
of the time and money was consumed in efforts to meet differing requirements of the
EPA and the Corps.
Case Studies on Problems with the Section 404 Regulatory
Program . Volume /
National Association of Home Builders
December 1989
4-5
SENT BY:Xerox Telecopier 7020 ; 4-24-92 ; 16:30
2024566218:# 2
During the President's trip to Columbus, Ohio next Thursday,
I think we can make a little extra local news with minor effort.
Since the President will be talking about regulatory reform,
tied in with his March announcement in Oklahoma to reduce
regulatory burdens in the natural gas industry, I think we should
provide natural gas vehicles for the motorcade. The local gas
company, Columbia Gas, has four door sedans, mini vans, a 15-
passenger van, and a bus available, all powered by natural gas.
This makes a nice environmental hit, one week after Earth Day,
the President planting a tree, the physical fitness event (breath
clean air); as well as sending a strong message about concern for
maximizing domestic energy sources; reducing the trade deficit; and
cutting the cost to consumers. All pluses for the Administration.
In a nut shell, over 90% of the natural gas used in the U.S.
is domestic, it's the cleanest burning fossil fuel, it sell for
about half the cost of gasoline, and it's safer than gasoline.
Sixty-seven per cent of our trade deficit in 1991 was imported oil,
money which would have been better spent at home.
In addition, for every additional 1 Tcf of gas used, 10,000 -
16,000 permanent jobs are created in the gas industry. (Gary Mauro
in Texas says it 50,000 jobs, but the A.G.A. thinks that too high.)
The pending national energy strategy contains provisions for
increasing the number of alternative fueled vehicles on the road.
This is a good way to illustrate the President's commitment to
seeing energy independence become a reality. This could also be
done in other states that have a utility company which is utilizing
natural gas.
Most people do not realize you can drive your car with the
same stuff you cook and heat your home with, I think it's a good
side story.
Joe FRom Gary Fortee
April 28, 1992
MEMORANDUM FOR SHERRIE ROLLINS
THROUGH: DAVID DEMAREST
FROM:
JOE DUGGAN
gD
SUBJECT: "REAL PEOPLE" CONSTITUENTS FOR THE REGULATION EVENT
Even on short notice, you may be able to get people from
nearby states to attend the ceremony. Sam Brunelli of the
American Legislative Exchange Council may be able to suggest
free-market reformist state legislators -- who themselves would
make good guests. The legislators in turn may be able to suggest
some of their constituents who fit the mold of grassroots
regulatory reformers.
Young people are a great target audience. They are the ones
who will benefit from these long-term reforms. I suggest you get
some economics students -- graduate and undergraduate -- from
George Mason University and the University of Virginia.
Finally, don't forget the academic and think-tank stalwarts.
Just on the other side of the Beltway at George Mason is the
Nobel Laureate economist James M. Buchanan. Let's give him a
place of honor at this ceremony. GMU also has stalwarts like
Henry Manne at the law school, and others. Invite Judge Bork --
he's a profound constitutional expert on regulation.
On the think-tank front, Fred Smith and Sam Kazman of the
Competitive Enterprise Institute are two of the bravest free-
market soldiers. Chris DeMuth, the president of AEI, is one of
the most brilliant intellectual analysts of regulation. And Bob
Hahn of AEI is also a first-rate expert. Jim Miller of Citizens
for a Sound Economy is a free-market hero -- and it would cheer a
lot of our conservative base to have him go out to the press
stakeout and praise the authenticity of our regulatory reforms.
With all due respect to the big-business lobbyists, I don't
think they are the types we want at the press stakeout after this
event. Ditto the Cabinet and agency officials -- they should be
seen and not heard. Better that we have beyond-the-Beltway
activists and nationally respected intellectuals amplify the
President's message.
REPORT
The Value of Pharmaceuticals
A Study of Selected Condition:
to Measure the Contribution
of Pharmaceuticals to
Health Status
To
Schering-Plough
March, 1990
BHARC-01390/010
Battelle
Putting Technology To Work
avoiding ischemic heart disease mortality. It is estimated that the annual health care
cost associated with all heart disease deaths is approximately $220 million.
Cerebrovascular Disease. The impact of controlling hypertension was estimated by
examining the mortality rate for stroke between 1940 and 1970 and extrapolating
that rate to 1986. Excluding the impact of lifestyle factors and non-pharmaceutical
treatment, it was estimated that 456,000 deaths and between 2.6 million and 6 million
nonfatal strokes were avoided between 1970 and 1986. This represents an estimated
$16.3 billion savings in indirect costs.
Arthritis. The contribution of pharmaceuticals to the treatment of arthritis was
assessed in qualitative terms because there are no data on changes in arthritis
symptoms. Anti-arthritic medications are the primary therapeutic measure for
dealing with this condition. Their impact is appraised primarily in terms of reduced
pain, increased mobility and improvements in quality of life.
Cancer. As with arthritis, pharmaceutical approaches to cancer cannot be clearly
valued in terms of lives saved, rather the most appropriate measure of impact is
survival rate. Changes in survival rate are a function of early detection and
improved therapies, including pharmaceutical treatment. Childhood leukemia is an
example of a neoplasm that is particularly responsive to chemotherapeutic agents.
Five-year survival for this condition has increased from 4 to 70 percent between 1960
and 1985. Besides prevention, pharmaceutical approaches to cancer are the major
modality for reducing mortality. This includes decreasing the unpleasant side effects
of chemotherapeutic agents, controlling pain, and developments in restoring a cancer
victim's immunity.
In our review, we have observed that the death rates for many of the major diseases
have fallen and life expectancy has increased. Infectious diseases caused by bacteria
have been nearly eliminated as major health threats, however, viral and
multifactorial diseases remain to be conquered. The majority of premature deaths
are now due to chronic conditions and diseases of old age. This report demonstrates
that pharmaceuticals provide methods to ease pain and permit those inflicted to live
more normal lives, in addition to being a significant contributor to saving lives.
Concerns have been raised regarding the level of investment in pharmaceuticals.
Health care expenditures in the U.S. topped $500 billion in 1987, an increase over
1986 of 9.8 percent. These expenditures were growing at double-digit rates through
ii
EXECUTIVE SUMMARY
This report examines the impact of pharmaceuticals on eight major diseases in the
U.S.: tuberculosis, poliomyelitis, influenza, pneumonia, coronary heart disease, stroke,
arthritis, and cancer. When possible, we attempt to assess that portion of
improvement in health status that is attributable to pharmaceuticals by extrapolating
trends of =morbidity and mortality.
Tuberculosis. Based on an extrapolation of mortality rates due to tuberculosis, we
estimated that between 60,000 and 90,000 deaths were avoided from 1947 and 1986.
These figures take into account the potential contribution of environmental and other
non-pharmaceutical factors that may have been operating during this time period.
It is estimated that these avoided deaths represented between $7.4 billion and $11.1
billion in indirect cost savings. (Indirect costs were measured as the potential
economic productivity losses which were avoided by preventing premature death.)
Poliomyelitis. We estimated the number of cases of polio that may have occurred
if polio vaccines had not been introduced in 1955 and 1962. Assuming that the
average incidence rate between 1940 and 1955 would continue, it was estimated that
approximately 970,000 cases of polio were avoided between 1955 and 1986. Of these
cases, approximately 630,700 would have been paralytic and as many as 409,000
individuals would have experienced significant or severe disability. Indirect costs
associated with these cases would have been $26.4 billion to $30.8 billion. Direct
costs would have been $1.3 billion.
Influenza and Pneumonia. Fluctuations in influenza epidemics constrain our ability
to predict the mortality of pneumonia which is often associated with influenza. The
ravages of the pandemic in 1918-1919 have not been repeated and the drop in deaths
from pneumonia has been attributed to the introduction of sulfonamide in 1938 and
other antibiotics. While vaccines are available for both influenza and pneumonia and
their benefits have been demonstrated in cost-benefit analyses, they are not widely
used. Given the characteristics of these diseases, additional improvements in
morbidity and mortality will likely be made only through pharmaceutical advances.
Coronary Heart Disease. Assuming that medical treatment of ischemic heart disease
and hypertension control accounted for 10 percent of the reduction in mortality
between 1968 and 1986, it was estimated that 671,000 lives were saved during this
time period. This represents $83.8 billion in averted indirect costs. Published
information is available on the direct (medical care) cost savings associated with
the 1970s to 1983 when stringent measures were employed to decrease expenditures
for hospitalizations under Medicare. The measures worked for a few years (lowering
the growth rate to 8 percent), but now the growth is resuming and there are no signs
of its abating in the near future. These figures have caused considerable concern
within the circle of government and other third party payers who pay for nearly
three-quarters of the personal health care bills.
Increasing costs can be attributed in part to inflation, the aging population, greater
access to health care services for the poor and the elderly, and vast improvements in
health care technology. During the past fifty years, physicians' black bags have been
augmented by numerous new tools and medications to diagnose and treat patients.
It is understood that increases in technology which prolong and improve life will cost
money, but there is some concern that the improvements in health are less dependent
on medical care than on other factors.
It has been suggested that environmental factors, economics, education, heredity and
behavior all influence an individual's health and the interrelationship with the
health care system could only account for a small amount of the improvements in
health. No one argued that the current health care system should be abandoned and
greater emphasis was placed on factors other than medical care.
While health care may not play the dominant role in determining health status, it
still has the primary role once an individual becomes ill due to the environment,
behavior or hereditary. Personal health care expenditures for 1987 were $442.6
billion, of which the lion's share went to hospitals (44%) and physicians' services
(23.3%). Outpatient expenditures for drugs (and medical sundries) of $34 billion
accounted for 7.7 percent of the total personal health care. In the context of medical
care, however, pharmaceuticals are a vital and significant contributor to health
status. Although expenditures for pharmaceuticals as a proportion of total medical
care costs are less than 10 percent, for many conditions medical treatment is
synonymous with drug therapy.
iii
Pharmaceutical
Gary S. Persinger
Manufacturers
DEPUTY VICE PRESIDENT
HEALTH CARE SYSTEMS
ssociation
November 6, 1991
Mr. John Cohrssen
Associate Director of
The Competitiveness Council
Office of the Vice President
Room 286
Old Executive Office Building
Washington, D.C. 20501
Dear Mr. Cohrssen:
Based on recent research by the Battelle Medical Technology
Assessment and Policy Research Center for Schering-Plough (The Value of
Pharmaceuticals: An Assessment of Future Costs for Selected Conditions),
we have estimates of the projected number of lives that could be saved in
five disease categories over a 25-year period and one disease category over
a ten-year period attributable to pharmaceutical advances:
Projected Lives Saved
Disease Category
Due to New Pharmaceuticals
Coronary Heart Disease
4,400,000
Cerebrovascular Disease
900,000
Leukemia
83,000
Lung Cancer
409,000
Colorectal Cancer
170,000
HIV Disease (Ten year period)
23,000
These are straight line projections and thus, if one wanted to
convert them to a monthly figure, one would simply divide the 25 year totals
by 300 (25 X 12). For HIV disease, one would divide by 120 (10 X 12). This
assumes that the rate at which new pharmaceuticals are introduced is uniform
over the 25-year period.
Also enclosed are copies of slides that you might find helpful. A
copy of the full Battelle report will be sent by messenger. I will be happy
to meet with you at your convenience to discuss this material. Please call me
at (202) 835-3539.
Sincerely,
Many Persinge
Gary S. Persinger
Enclosures
America's Pharmaceutical Research Companies
1100 Fifteenth Street NW, Washington, DC 20005
Tel: 202-835-3539
FAX: 202-835-3413, 3414
July 1991
Industry Perspective
The Value of Pharmaceuticals I
Prescription drugs have played an important
role in the vast improvement in the nation's
Crude and Age-Adjusted Death Rates:
Figure 1
health care since 1940 (Figure 1).
United States, 1940-1987
That fact is dramatically illustrated in a
Rate per
March 1990 report prepared for the Schering-
100,000 population
Plough Corporation by the respected Battelle
1,300
Medical Technology and Policy Research Center
1,200
in Washington, D.C. In the 61-page analysis,
authors Ruth E. Brown and Bryan R. Luce,
1,100
Ph.D., have attempted to measure the contribu-
1,000
Crude death rate
tions of pharmaceutical products in preventing
900
or treating eight major diseases.
800
The diseases are tuberculosis, poliomyelitis,
700
influenza, pneumonia, coronary heart disease,
stroke, arthritis and cancer. (Not included in the
600
Age-adjusted death rate
Battelle study are several diseases that have been
500
virtually eliminated in the U.S., although they are
still worldwide health problems. These include
0
measles, mumps, whooping cough, diphtheria
1940
1950
1960
1970
1980
1987
and yellow fever. Another disease, smallpox, has
Year
been totally eradicated.)
Death rates have been steadily decreasing since 1940.
Tuberculosis. Death rates from tuberculosis
Source: Vital Statistics
were already declining from a high of 32.7 per
100,000 when streptomycin became available in
1947. After that. tuberculosis mortality declined
far more sharply than what had been expected,
Tuberculosis Death Rates
Figure 2
dropping even more precipitously when isoniazid
came on the market in 1952. The two curves
Deaths per
100,000
merged at 0.5 deaths per 100,000 in 1985 (Fig-
50
ure 2). The Battelle researchers estimate that
45.9
between 60,000 and 90,000 deaths were avoided
because these antibiotics were available between
40
1947 and 1986. This represents between $7.4
billion and $11.1 billion in indirect cost savings,
30
measured as the potential economic productivity
losses avoided by preventing premature death.
20
(Since the technology for treating tuberculosis
has changed considerably since the 1940s, the
Expected decline
direct costs were not estimated because of lack
10
of historic data on the costs of treating TB in the
Observed decline
early years.)
0.5
0
Poliomyelitis (infantile paralysis). During
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
the 1940s and early 1950s, polio rates increased
Year
irregularly (Figure 3), with the highest incidence-
20 per 100,000-occurring during 1952-54,
Expected versus actual tuberculosis death rates are merging.
when the total number of cases neared 132,000.
Source: Battelle Medical Technology and Policy Research Center
continued on page 2
continued from page 1
Mortality from these cases reached 3,145 in
Poliomyelitis Case Rates
Figure 3
1952. Since 1955, when the Salk vaccine was
Cases per
introduced, the number of polio cases has
100,000
declined dramatically, falling to 1.8 per
25
100,000 in 1960 and to less than 0.1 since
1965. Without the vaccine, the Battelle
22.5
researchers estimate, the average incidence rate
between 1940 and 1955 would have continued,
20
producing approximately 970,000 cases of
17.6
17.9
17.8
polio, of which about 630,700 would have
17.1
been paralytic. As many as 409,000 individuals
Expected
15.7
would have experienced significant or severe
15.1
disability. Indirect costs associated with these
15
14.8
cases would have been $26.4 billion to $30.8
billion. Direct costs of treating these polio
Observed
victims would have been $1.3 billion.
10.0
Influenza and Pneumonia. Although they
10
7.4
are separate diseases caused by different organ-
isms, influenza and pneumonia are tracked
together because of their interrelationship:
pneumonia is the most common complication
5
of influenza and there is difficulty in separating
the two for reporting purposes. An estimated
1.8
1.0
1.0
1.0
1.0
1.0
20 to 30 million people died in the 1918-1919
worldwide influenza epidemic-548,000 in the
0
U.S.-and 50 times that were stricken. But
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
there has been a steady decrease in deaths from
Year
the two diseases in this century, with a sharp
Drop in polio cases coincides with introduction of Salk vaccine.
drop beginning in 1938 attributable to the
Source: Battelle Medical Technology and Policy Research Center
introduction of sulfonamide and the later
introduction of other antibiotics (Figure 4).
Despite four epidemics between 1957 and
1969, the age-adjusted death rate for influenza
Influenza and Pneumonia:
Figure 4
and pneumonia dropped below 100 deaths per
Trends in Mortality, 1900-1970
100,000 in 1938 and has continued dropping
Annual death rate
almost without interruption to 13.5 in 1986.
per 100,000
Although antibiotics and vaccines clearly con-
600
tributed to this decrease, Battelle found it diffi-
cult to estimate the portion of the improved
500
health status attributable to pharmaceuticals
because of the fluctuations in epidemics.
400
Coronary Heart Disease. Cardiovascular
300
diseases have been the number one cause of
death in the U.S. since 1900. The unexpected
200
decline in mortality rate that began in 1968
(Figure 5) has been analyzed by epidemiologists,
100
physicians and policy analysts in attempts to
80
determine the cause of the reduction. If the
downward shift from 1968 had not occurred
60
and the rates continued unchanged through
1986, there would have been approximately
40
1,609,000 deaths in 1986 instead of the actual
20
number of 968,240. Examining coronary heart
disease alone, analysts in 1984 estimated that
0
medical therapy and treatment of hypertension
1900
1910
1920
1930
1940
1950
1960
1970
Year
accounted for 18.5% of the eight-year decline
from 1968 to 1976, of which 10% of the
Introduction of antibiotics decreased flu/pneumonia mortality.
estimated 3.6 million lives saved were from
Source: Vital Statistics
continued on page 3
2
continued from page 2
therapeutic interventions resulting from medical
Cardiovascular Disease Deaths
Figure 5
treatment and 8.5% from hypertension control.
Deaths in
The 671,000 lives saved through pharmaceutical
millions
interventions represent $83.8 billion in averted
2
indirect costs during the eight-year period. The
Battelle researchers estimate the annual direct
cost for all heart disease deaths is approxi-
1.6
mately $220 million.
1.55 Expected
Cerebrovascular Disease (stroke). Death
1.5
rates from cerebrovascular disease decreased
gradually between 1900 and 1950, when the
1.4
1.2
rate reached 88.8 deaths per 100,000. Mortality
1.1
decreased slightly in the next 20 years, reaching
1.05
66.3 in 1970, then decreased more sharply until
1
it hit 31.0 in 1986 (Figure 6). There is strong
1.02
1.0
.99
.98 Observed
.97
evidence that lowering blood pressure can
reduce the incidence of stroke. The first anti-
hypertensive drugs became available in the early
1950s and the number of effective agents
0.5
increased considerably through the 1960s and
1970s, paralleling the downward trend in mor-
tality. By extrapolating the mortality rate for
stroke between 1940 and 1970 to 1986, and
excluding the impact of lifestyle factors and
0
nonpharmaceutical treatment, the Battelle
1968
1970
1975
1980
1985
1986
researchers estimated that 456,000 deaths and
Year
between 2.6 million and 6 million nonfatal
(years not consecutive)
strokes were avoided between 1970 and 1986.
Medical therapy partly explains unexpected mortality decline.
This represents an estimated $16.3 billion sav-
Source: Battelle Medical Technology and Policy Research Center
ings in indirect costs.
Arthritis. The contribution of pharmaceuti-
cals to the treatment of arthritis was assessed in
qualitative terms because there are no quantita-
Stroke Death Rates
Figure 6
tive data on changes in arthritis symptoms.
Anti-arthritic medications are the primary ther-
Deaths per
100,000
apeutic measures for dealing with this condi-
100
tion. Their impact is appraised primarily in
90.8
terms of reduced pain, increased mobility and
88.8
improvements in quality of life. Of the 30.3
79.7
million people reporting arthritis in 1985, 6.1
80
million (20%) reported having limitations in
66.3
62.1
activity due to the disease. Individuals with
Expected 59.6
arthritis incur up to three times the medical
60
care costs of individuals without it. In three
studies reviewed by the Battelle researchers, the
direct costs per arthritis patient varied from
40
$1,316 to $4,033.
40.8
Cancer. The American Cancer Society esti-
Observed
31.0
mates that over one million people are diag-
nosed annually as having cancer. As with arthri-
20
tis, pharmaceutical approaches to cancer cannot
be clearly valued in terms of lives saved.
Rather, the most appropriate measure of impact
0
is survival rate, which depends on early detec-
1940
1950
1960
1970
1980
1986
tion and improved therapies, including phar-
Year
maceutical treatment. Survival rates improved
(years not consecutive)
for almost all forms of cancer between 1950
Mortality decreases may be related to lower hypertension.
and 1982 (Figure 7). Besides increasing survival
Source: Battelle Medical Technology and Policy Research Center
continued on page 4
3
continued from page 3
from some cancers, pharmaceuticals are used to
Survival Trends by Cancer Type
Figure 7
decrease the unpleasant side effects of
chemotherapeutic agents, to control pain, and
5-year relative survival rate (%)
Improvement (%)
to restore the cancer patient's immunity.
Cancer type
1950
1982
Absolute
Relative to 1950
Bladder
53
77.3
24.3
45
Conclusion
Endometrial
72
87.1
15.1
21
Prostate
43
71.1
28.1
65
Breast
60
74.6
14.6
24
The Battelle researchers conclude that health
Leukemia
10
33.0
23.0
230
care-as opposed to heredity, behavior or
Non-Hodgkin's Lymphoma
31
48.1
17.1
55
environment-plays the dominant role in deter-
Cervical
59
67.4
8.4
14
mining health status once an individual becomes
Rectum
40
49.7
9.7
24
ill. According to Health Care Financing Adminis-
Head & Neck
45
54.3
9.3
21
tration statistics, the lion's share of the $539.9
Lung
6
11.6
5.6
93
Stomach
12
15.7
3.7
31
billion spent on personal health care in 1988
went to hospitals (39%) and physicians' services
1982 survival - 1950 survival
Improvement =
(19%). Expenditures of $41.9 billion for drugs
1950 survival
(and medical sundries) accounted for 7.8% of
Survival rates are improving for almost all forms of cancer.
the total. "In the context of medical care, how-
Source: 1950 statistics from NCI End Results Program; 1982 statistics from SEER Program.
ever, pharmaceuticals are a vital and significant
contributor to health status," the researchers
concluded. "Although expenditures for phar-
maceuticals as a proportion of total medical care
costs are less than 10 percent, for many condi-
tions medical treatment is synonymous with
drug therapy."
For more information. contact Jeff Trewhitt,
manager of media services at the Pharmaceutical
Manufacturers Association (202/835-3463).
Pharmaceutical
Manufacturers
A
ssociation
1100 15th Street. NW. Washington, DC 20005
4
July 1991
Industry Perspective
The Value of Pharmaceuticals II
Advances in medical care and changes in
lifestyle will save millions of lives and billions of
Reductions in Baseline Disease Estimates
Figure 1
dollars over the next 25 years, reducing both the
Due to Pharmaceutical Advances (1990-2015)
human and financial costs of cardiovascular dis-
# cases
% of
# deaths
% of
$ costs
% of
ease. cancer, arthritis, Alzheimer's disease and
prevented
total
avoided
total
saved
total
HIV disease.
These are the major findings of a study
cardiovascular*
9,100,000
40
5,300,000
40
211
40
commissioned by Schering-Plough Corporation
from Battelle's Medical Technology Assessment
lung cancer
94,000
12
409,000
24
11
16
and Policy (MEDTAP) research center in Wash-
leukemia*
0
0
83,000
95
3.6
95
ington, D.C. [A related Battelle MEDTAP study,
also commissioned by Schering-Plough, analyzes
colorectal cancer
61,000
20
170,000
50
1.1
26
the impact of lifestyle changes and medical
Alzheimer's diseaset$
-
-
-
-
68
89
advances on selected diseases during the past 50
years. For a detailed discussion, see The Value of
arthritis$
-
-
-
-
Pharmaceuticals I.]
rheumatoid
19
100
The Battelle study projects death and disease
osteoarthritis
-
-
-
-
162
80
rates for eight key diseases through 2015. They
HIV disease
39,000
75
23,000
75
11
73
include: coronary heart and cerebrovascular
disease (stroke); leukemia, lung and colorectal
Note: disease models are not interactive
cancer; rheumatoid arthritis and osteoarthritis;
"indirect costs only
tdirect costs only
and Alzheimer's disease. The toll from HIV dis-
#1990-2000
ease. due in part to a lack of data, is more diffi-
§pharmaceuticals used in treatment. not prevention. of disease
cult to project and is estimated only through the
Source: Battelle Medical Technology and Policy Research Center
year 2000.
Released in April 1991. this second study is
unique in three respects. First, it estimates the
number of cases and deaths from these diseases
improvements in behavior that reduce risk factors.
to the decline in smoking. The portion of the
that will occur in the next 10 to 25 years, taking
An additional 10 percent decline will result from
population that continues to smoke will drop
into account demographic changes such as the
other biomedical advances, such as surgical plaque
from 26 percent in 1990 to approximately 13
graying of America. Second, it uses expert fore-
removal and heart-assist devices. The remaining
percent in 2010. Advances by the pharmaceutical
casting to project the impact that lifestyle changes
40 percent decline in cases (5.3 million) will
industry will be responsible for 12 percent of
and medical advances will have on rates of death
result from improved pharmaceuticals. including
this overall decline of 94,000 cases.
and disease. Third. it projects the resulting eco-
lipid-lowering agents and anti-hypertensive medi-
About 409,000 deaths will be averted. Phar-
nomic benefits.
cations.
maceutical advances are credited with half the
"Disease imposes an enormous burden of
If. as the study suggests, these behavioral
decline in mortality between 2010 and 2015.
costs on our society. First, there are the direct
and therapeutic advances do occur, deaths and
Radically new treatments, such as cancer vaccines
costs of medical care. Then there are the indirect
the incidence of cardiovascular disease will be
and monoclonal antibody therapy, may play a
costs of lost productivity due to premature deaths
reduced by two-thirds over the next 25 years.
major role in this decline (Figure 1).
and time away from work because of disease,"
The 40 percent reduction in cardiovascular cases
Leukemia. Of the three cancers studied,
said Dr. Bryan R. Luce, director of Battelle
and deaths attributable to improved pharmaceuti-
leukemia offers the most hope for medical cures.
MEDTAP. "These new forecasts show the value
cals would save cumulative indirect costs of
Pharmaceuticals have already proven successful
of investments in behavioral and technological
$211 billion (Figure 1).
against childhood leukemia, inducing remission
innovations."
Lung Cancer. Behavior changes play a key
in over 90 percent of children. Since lifestyle is
Cardiovascular Disease. Half of the decline
role in the forecasted decrease in lung cancer
unlikely to be a major contributing factor,
in cardiovascular disease. involving about 6.6
cases and deaths over the 25-year study period.
researchers are focusing on improved methods of
million cases, will be attributable to continued
The number of new cases will fall in proportion
continued on back
continued from front
chemotherapy and outpatient treatment.
Percent of Total Cost Avoided
Figure 2
Mortality is expected to decrease 20 per-
Due to Pharmaceutical Advances (1990-2015)
cent. with pharmaceutical advances responsible
for 95 percent of the decrease. amounting to
53.6 billion in reduced indirect costs (Figure 1).
95
89
90
Colorectal Cancer. While behavioral changes
will play a role in lowering the number of future
73
colorectal cancer cases, pharmaceuticals will pre-
vent about 170,000 future deaths.
40
Twenty percent. or 61,000, of the reduction
26
in cases between 1990 and 2015 will be attribut-
16
able to pharmaceutical advances, while the other
80 percent will result from dietary changes and
improvements in screening. This decline assumes
cardiovascular*
lung cancer
leukemia"
colorectal
Alzheimer'st
arthritis
HIVI
that dietary changes make a difference. almost as
"indirect costs only
tdirect costs only
#1990-2000
much a difference as reduced smoking makes in
Source: Battelle Medical Technology and Policy Research Center
lung cancer (Figure 1).
Arthritis. Approximately 30 million people
were identified as having arthritis in the 1985
National Health Interview Survey. The survey
in the number of people progressing to AIDS and
39,000. would be due to pharmaceutical advances.
ranks arthritis as the second most prevalent
a 10 percent decrease in the number of deaths.
(Figure 1).
chronic condition. after sinusitis. for all individ-
Based on these estimates. it is expected that
For more information, contact Jeff Trewhitt.
uals and the most prevalent chronic condition
there will be 52,000 fewer individuals progressing
manager of media services at the Pharmaceutical
for those over age H.
to AIDS. About 75 percent of the reductions. or
Manufacturers Association (202/835-3463).
The new study estimates that there will be a
reduction of 1.96 million cases of rheumatoid
arthritis and osteoarthritis by 2015. In 90 per-
cent of those cases. progress will be the result of
pharmaceutical advances such as improved
immunosuppressants and prostaglandin inhibitors.
Cost reductions due to pharmaceutical improve-
ments should save S19 billion for rheumatoid
arthritis and S162 billion for osteoarthritis
(Figure 1).
Alzbeimer's Disease. Approximately four
million people suffer from Alzheimer's disease
(AD) in the U.S. today. The study projects that.
by the year 2015. over six million people will
have AD. about half of whom will need special
care in nursing homes or in their own homes. As
in the cases of leukemia and arthritis, the preva-
lence of AD is expected to remain unchanged
over the next 25 years.
Technology. environmental improvements
and genetic modulation will decrease by 10 per-
cent the need for institutionalization or enhanced
community care. This translates into a $76 billion
cumulative direct medical cost savings, of which
S68 billion. or 90 percent. will be due to direct
innovations in pharmaceuticals (Figure 1).
HIV Disease. From 1981 through early 1991.
nearly 160,000 AIDS cases. resulting in more
than 100,000 deaths. were reported to the
Centers for Disease Control. Because of difficul-
Pharmaceutical
ties in projecting the incidence of AIDS. forecasts
are provided only for the period 1990 to 2000,
Manufacturers
assuming 30,000 new cases each year. It was
A
ssociation
predicted that preventive and therapeutic
advances would result in a 10 percent decrease
1100 15th Street, NW. Washington, DC 20005
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
Association
($Billions)
120
110
13 Drugs Are In Clinical Trials for Osteoporosis
100
90
80
70
60
50
40
30
20
$10B
10
0
Osteoporosis
Sources: Alliance for Aging Research;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
Association
($Billions)
120
110
12 Drugs Are In Clinical Trials for Diabetes
100
90
80
70
60
50
40
30
$20B
20
$10B
10
0
Osteoporosis Diabetes
Sources: American Diabetes Association;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
A
ssociation
($Billions)
120
110
15 Drugs Are In Clinical Trials for Depression
100
90
80
70
60
50
40
$27B
30
$20B
20
$10B
10
0
Osteoporosis
Diabetes
Depression
Sources: National Institute of Mental Health;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
ssociation
($Billions)
120
110
23 Drugs Are In Clinical Trials for Arthritis
100
90
80
70
60
50
$35B
40
$27B
30
$20B
20
$10B
10
0
Osteoporosis
Diabetes
Depression
Arthritis
Sources: Alliance for Aging Research;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
ssociation
($Billions)
120
110
16 Drugs Are In Clinical Trials
100
for Alzheimer's Disease
$88B
90
80
70
60
50
$35B
40
$27B
30
$20B
20
$10B
10
0
Osteoporosis
Diabetes
Depression
Arthritis
Alzheimer's
Disease
Sources: Alzheimer's Association;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
A
ssociation
($Billions)
120
110
91 Drugs Are In Clinical Trials
$95B
100
for Cardiovascular Diseases
$88B
90
80
70
60
50
$35B
40
$27B
30
$20B
20
$10B
10
0
Osteoporosis
Diabetes
Depression
Arthritis
Alzheimer's
Cardiovascular
Disease
Diseases
Sources: Alliance for Aging Research;
PMA New Medicines in Development Survey
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
UNCURED DISEASES
Association
($Billions)
120
$104B
110
92 Drugs Are In Clinical
$95B
100
Trials for Cancer
$88B
90
80
70
60
50
$35B
40
$27B
30
$20B
20
$10B
10
0
Osteoporosis
Diabetes
Depression
Arthritis
Alzheimer's
Cardiovascular
Cancer
Disease
Diseases
Sources: "The National Economic Burden of Cancer," 1990;
PMA New Medicines in Development Survey
Innovation and Access
COST OF
Pharmaceutical
Manufacturers
UNCURED DISEASES
ssociation
($Billions)
120
110
Total Annual Cost: $379 Billion
100
90
80
70
60
50
40
30
20
10
0
Innovation and Access
Pharmaceutical
COST OF
Manufacturers
ssociation
UNCURED DISEASES
($Billions)
120
110
Total Annual Cost: $379 Billion
100
90
80
70
60
Total Rx Sales in 1990:
50
$41 Billion
40
30
20
10
0
Source: PMA Survey
THE WHITE HOUSE
WASHINGTON
DATE: 4/28
TO: for Duggan
Rm. 122
FROM: DANIEL A. CASSE
Deputy Director
Office of Cabinet Liaison
Room 239, OEOB, x2800
Small bus. owners
FYI
ever familes
Appropriate Action
that engloy
Artysitters
Let's Discuss
Per Our Conversation
Per Your Request
Please Return
COMMENTS:
APR-27-1992 19:01 FROM DEP SEC HHS
TO
9-4561605 P.02
POSSIBLE SPEECH MATERIAL: Regulatory Reform (HHS)
Single Wage Reporting System
Today, an employer has to file multiple forms to report wage
and tax information -- not just to the federal government,
but also to each state. And if a company has employees in
more than one state, then different forms have to be filed
for each state.
For the individual employer -- small and large employers
alike -- this process is needlessly costly, inefficient, and
complex. The paperwork burden on the American public is
estimated at 500 million hours a year for federal reporting
alone.
It's also a bad deal for the individual employee, since this
system is more likely to produce errors -- and that can
affect tax reporting and Social Security payments.
Our Departments of HHS, Treasury and Labor are exploring
ways to simplify this process. We're looking for a simpler
reporting mechanism so that we can get the information we
need, more accurately and at less cost in time and dollars.
In the long term, our employers can save $6 billion or more
each year through a simpler wage reporting system. And the
government's own administrative costs can be reduced, as
well.
(See attached bullets for additional info.)
Accelerated approval of new drugs
companies
cite
Some of the biggest success stories in modern medicine have
been new pharmaceutical products. The most important new
goong
drugs can literally save millions of lives, and reduce
health care costs at the same time, by reducing the need for
to
surgeries or hospitalization, or other more expensive
and
treatments.
Jan.28 since
We need to get the most promising new drugs to the
marketplace faster. And under the steps being taken by the
Food and Drug Administration, we will.
New regulations to accelerate the approval of breakthrough
drugs can reduce the approval period for those drugs by as
much as one to three years -- with savings of $1 billion or
more per year -- and still ensure safety for the consumer.
(See attached Press Release)
APR-27-1992 19:02 FROM DEP SEC HHS
TO
9-4561605 P.03
Page 2
Health Care Administrative Costs
We've all dealt with complicated insurance forms and
reports. Multiply that experience by the millions, and you
can envision the unnecessarily high administrative costs in
our health care system.
The fact is, with today's computer capacities, we can
streamline our health insurance administrative system, for
both private and public insurers. And that will reduce the
hassle for the patient and the individual doctor as well.
Through direct electronic billing, we can save as much as $1
to $2 dollars for each health insurance claim that's being
filed today through paperwork -- and there are some 3
billion paper claims today.
The process can improve accuracy as well. And electronic
systems can also be extended to patient records -- meaning
records could be more quickly and easily retrievable, for
example in an emergency situation.
Secretary Sullivan has launched an initiative with the
medical, hospital and insurance sectors to make electronic
billing a reality. The potential savings is in the range of
$4 billion a year.
APR-27-1992 19:02 FROM DEP SEC HHS
TO
9-4561605 P.04
WAGE REPORTING INITIATIVE
Current status of Wage Reporting
The wage and tax reporting system now requires that
employers report wages, and their corresponding tax
amounts, in a variety of ways to several Federal and
State entities. Last year more than 5 million
employers reported about $850 billion in payroll taxes.
Employers file Forms W-2/W-3 data yearly with the
Social Security Administration (SSA) and States; Form
941 data quarterly and annually with the Internal
Revenue Service (IRS) ; and unemployment compensation
data quarterly with the States, who subsequently share
these data with Federal agencies such as IRS and
Department of Labor.
Reporting requirements among the various Federal and
State agencies are overlapping but not identical.
Employers, therefore, must present information in a
variety of formats.
Many Federal and State programs are dependent on the
wage and tax reporting information. Data reported to
one agency is generally shared with selected other
agencies. For example, SSA and IRS share reported Form
W-2/W-3 and Form 941 data with each other.
The current processes are costly, complex, inefficient
and burdensome to businesses. It is estimated that the
paperwork burden on the public for just the Federal
reporting is in excess of 500 million hours annually.
Proposal
Federal and State agencies working together could
develop standardized reporting requirements to capture
all essential wage and tax data currently reported via
Forms W-2/W-3 and 941 and unemployment compensation
data.
Employers would be required to file these integrated
wage and tax data with only one agency (to be
selected).
The agency receiving these data would be responsible
for sharing pertinent information with other federal
and State agencies needing it.
Cost-sharing would be equitably divided among all
agencies making use of the data reported.
Implementation would be phased-in over several years.
APR-27-1992 19:03 FROM DEP SEC HHS
TO
9-4561605 P.05
Potential Costs/Benefits
Costs include, but are not limited to, development and
start-up costs for the federal government, State
governments and employers.
There is some potential for adverse reaction from
groups concerned that all wage data stored in one place
could increase the likelihood of abuse or misuse. In
addition, some might view the present system as more
likely to uncover reporting errors than would a single
report.
Benefits include, but are not limited to, reduced
employer burden for wage and tax reporting, increased
consistency of data used by various agencies, reduced
duplication of processes among federal and State
agencies and; therefore, collective operating costs
would be reduced, improved timeliness of data.
While no estimates of costs or benefits have been
developed, it is likely that cost savings to the
private sector could be 6 - 7 billion dollars annually.
Next Steps/Actions
Develop and document alternatives for implementation
strategies and plans and system proposal.
Alternatives will be presented to various federal
agencies for consideration.
Input from States and employers will be solicited and
their reactions incorporated into the system proposal
and implementation strategy and plan.
System proposal and implementation strategy and
timetable are finalized.
The actions listed above should be completed by the end
of 1992.
APR-27-1992 19:03 FROM DEP SEC HHS
TO
9-4561605 P.06
HHS NEWS
U.S. DEPARTMENT or HEALTH AND HUMAN SERVICES
P92-10
Food and Drug Administration
FOR IMMEDIATE RELEASE
Eva Kemper -- (301) 443-3285
April 9, 1992
(Home) -- (410) 740-2633
Vice President Dan Quayle and HHS Secretary Louis W. Sullivan, M.D.,
today announced that four initiatives are being implemented by the Food and
Drug Administration to speed access to new drugs and improve the drug review
process.
"These initiatives follow through on FDA's commitment made last
November, as recommended by the President's Council on Competitiveness, to
provide earlier access to important new drugs, ease unnecessary regulatory
burdens and strengthen U.S. competitiveness," said Vice President Quayle,
who chairs the Council.
"These actions will save both lives and money and reduce human
suffering. They will substantially improve FDA's ability to respond
vigorously to the nation's health needs by allowing important new drugs to
be approved months or even years earlier than was previously possible,"
Secretary Sullivan said.
FDA Commissioner David A. Kessler, M.D., said that the changes will
streamline the drug development process without sacrificing rigorous
oversight. "While drug reviews will be accomplished faster, patients can be
assured that only drugs that are both safe and effective will be approved,"
he said.
-MORE-
ATTENTION TV BROADCASTERS: Please use open caption for the hearing impaired.
APR-27-1992 19:04 FROM DEP SEC HHS
TO
9-4561605
P.07
Page 2, P92-10, Drug Approval
The four initiatives reported today are:
Accelerated Approval Proposed rules are being published to accelerate
the approval of new "breakthrough" drugs. They will allow these therapies
to be approved at the earliest time in their development at which safety and
effectiveness can be reasonably established. Under these new procedures, in
making an approval decision, FDA will use "surrogate endpoints" that
indicate that a drug is effective and then further confirm its effectiveness
through additional human studies that will be carried out after marketing
approval. "We used surrogate endpoints in approving the AIDS drug DDI. DDI
was approved in just months -- not years, as would normally have been the
case," Dr. Kessler said.
Under the new procedures time to approval could be reduced by as much as
one to three years for "breakthrough" drugs.
Parallel Track Experimental therapies will be made available to AIDS
patients as early as possible in the drug development process -- a departure
from the current practice of making investigational drugs available
initially only through controlled clinical studies. This "parallel track"
policy, an effort of the National Institutes of Health and FDA, will be
published in the Federal Register this week. It will permit access to these
drugs by those patients with AIDS who are unable to participate in the
controlled clinical trials. The new policy, initially aimed at AIDS, may be
evaluated for other serious diseases.
Safety Testing Harmonization. Through guidance based on consensus among
the European Community, Japan and the United States, safety data based on
animal testing in one of the participating countries will now be accepted by
the others. This will eliminate the need to duplicate valid animal testing,
-MORE-
APR-27-1992 19:04 FROM DEP SEC HHS
TO
9-4561605 P.08
Page 3. P92-10, Drug Approval
and will reduce the time currently required for long-term testing by six
months or more.
"As a result, safety data developed in accordance with one country's
standards will be accepted by another. and drug sponsors will no longer face
the burden of performing multiple studies on new drugs to meet varying
national requirements. This will cut the time and resources currently
required for such testing," Dr. Kessler said.
Outside Expert Reviews. To reduce the backlog of new drug applications,
FDA is undertaking an external review program to use qualified experts from
outside the government to review certain routine types of applications. FDA
has solicited a proposal for a pilot external review. A contract to manage
and conduct this review is being negotiated with the MITRE Corporation. A
notice appeared Friday, April 3, in Commerce Business Daily soliciting
additional qualified organizations to participate in this program. Although
FDA will retain final approval authority, the expert reviewers will assume
much of the burden of analyzing the data in these applications.
Both FDA and NIH are agencies of the Public Health Service within HHS.
####
FROM:HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27, 1992 6:13PM #403 P.02
READERS DIGEST
March 1992
A regulatory noose is keeping millions from realizing the
American dream of a home of their own
prices by as much 28 35 percent.
"It's a national scandal," says
How Government
former New Jersey Governor Tom
Kean, chairman of a bipartisan
panel that investigated the situation
Makes Housing
for Housing and Urban Develop-
ment (HUD) Secretary Jack Kemp.
Here are some of the costly regula-
Unaffordable
tions Kean and his colleagues
uncovered.
By TREVOR ARMBRISTER
Zoning. Last fall, Libertyville,
III., persuaded Motorola, Inc., to
build a plant that would provide
3000 to 5000 jobs. But village offi-
cials didn't change the master zon-
T
OM NOLAN is a $38,000-per-
ing plan to allow the building of
year New York City Transit
affordable homes.
Police officer. His wife Patri-
Exclusionary zoning frequently
cia is a $16,000-per-year school-bus
stems from a concern that new
driver. They'd love to own a home,
but a three-bedroom house in
development may lower property
Farmingdale, N.Y., where they live
values, increase traffic congestion
costs on average $150,000. "We
and create a need for such expen-
could afford the mortgage," Tom
sive services as schools. But restric-
says, "but how do we get the down
tions drive up the cost of land,
payment?"
unable to live in the community
which in turn drives up the cost of
In Mission Viejo,
where he works? "Something is
housing.
Calif., school-sys-
severely messed up," he says.
Some sections of Plainsboro,
tem employees
Despite low mortgage rates,
N.J., for example, allow only one
Karen and Barry
many young people today are dis-
residence for every six acres. The
Jasperson earn 1
covering home ownership is an im-
town boasts office parks and mil.
combined
possible dream. According to the
lions of square feet of commercial
$42,000. They
Census Bureau, 57 percent of fam-
space. But the people who work
figure they
ilies-56 million Americans-can't
there are too often forced to live
afford to buy a median-priced
elsewhere.
would need
$40,000 to
home where they want to live. Nine
The permit maxe. Back in the
$50,000
of ten renters are, in effect, frozen
1930s, the Empire State Building
down to
out of the market for median-
was completed in little more than a
buy a
priced houses. The situation is par-
year. Today it can take developers
ticularly acute in California and the
two to five years just to 8th permits
northeast corridor between Boston
(water, sewer, electricity) for subdi-
and Washington, D.C. But it's
vision homes.
spreading fast to states like Florida,
These delays are expensive. In
home for them and their two kids.
Ohio and Illinois.
some California communities, 2C-
"Impossible," says Barry.
What's responsible? Turbulence
cording to Brookings Institution
Montgomery County, Md., fire-
in the banking industry is one fac-
economist Anthony Downs, the
fighter Richard Huff and wife, Pat,
tor; others are the increasing costs
first $30,000 of the cost of a new
set out to buy a home. "You really
of land, labor and materials. But the
home is directly attributable to gov-
can't afford this," their real-estate
real villain is something few buyers
ernmental permits and fees.
agent kept saying. "You can't af-
suspect: a spider web of regulation
The permit maze sometimes
ford that." Finally, they found a
at all levels of government that
stops housing altogether. In West
place in Frederick, Md., 37 miles
chokes off the supply of new af-
Windsor Township, N.J., the de-
away. How does he feel about being
fordable homes and drives up
- 14 -
FROM: PUBL AFFAIRS-NEWS
TO:94566231
MAR 27. 1992 6:14PM #403 P.03
HUD News Summary
Periodicals
new 238-unit subdivision on Staten
Exorbitant impact fees. In the
veloper of a proposed 2600-unit
Island, N.Y. Priced at $76,500. it
Cincinnati suburb of Cleves,
subdivision discovered that he
was the "only house we could af-
builder Jay Buchert sells a 1000-
needed 11 different approvals from
ford." The Teppers put down ten
square-foot starter home for
nine separate agencies before con-
percent and looked forward to
$65,000. He has to pay a total of
struction could begin. But after
moving in that October.
$750 for water and sewer hookup
four years of pursuing permits, the
The site for the development
fees, building permit and final in-
market had disappeared, and the
was not designated as a wetland on
spection charges.
housing project was suspended.
preliminary maps of the area issued
Just 30 miles away, in Mason,
"Jet fighters and moon rockets
by the state's Department of Envi-
such "impact fees" for 2 nearly
get by with triple redundant con-
ronmental Conservation (DEC).
identical home total as much as
trol systems," says William M.
But after work had begun, a DEC
$5150, which he passes along to his
Connolly, director of New Jersey's
technician found ten-year-old aeri-
customers. "They're using that ex-
Division of Housing and Develop-
al photographs showing that the
tra money to cover improvements
ment. "We need seven government
site previously contained Alora simi-
to the water and sewer departments
agencies to look at whether storm
lar to that on protected wetlands
in the rest of the community," Bu-
drainage will drain."
nearby. It was enough to close the
chert says, "laying the cost off on
Taylor Woodrow Homes execu-
project down.
people who buy new homes."
tive Jeffrey Prostor sought permis-
Home buyers like the Teppers
In at least 30 states, communities
sion to build 123 condominiums in
were effectively shut out. They
are forcing developers-and hence
Laguna Niguel, Calif., -priced at
sought help from the DEC, but the
new home buyers-to pay for
$150,000 to $195,000. After Orange
agency's bureaucrats said their
schools, parks, fire stations, recre-
County approved the plans, the
hands were tied. Finally, after 18
ational facilities and improvements
company spent $I million putting
months, the logjam broke and the
to roads and bridges used by long-
in streets and utilities and began
Teppers were able to claim their
time residents.
building models. But when Prostor
home.
Nowhere are impact fees more
sought to include lower-priced
Even so, the rest of the project
onerous than in Southern Califor-
units, opposition emerged. A local
took another year of redesigning,
nia where, says Timothy L. Coyle,
resident filed 2 last-minute appeal
study and permit approval. Of the
director of that state's Department
to the city council. The units, he
original 238 homes, fewer than 140
of Housing and Community De.
complained, would house too many
were built and sold. When the proj-
velopment, they can add at least
people and be inappropriate for the
ect was finished, prices had in-
$20,000 to the cost of a house. That
community. Council members,
creased at least 50 percent.
could mean $150 to $200 extra in
fearing that they would be labeled
In their quest to stop development
monthly mortgage payments.
"pro-development," rejected the
in its tracks, environmentalists cite
"It's extortion," says Upland,
proposed additional homes.
"wetlands" almost everywhere.
Calif., developer Ira Norris, "and
The council "ignored the needs
They also take advantage of the
there's no political risk. In many
of senior citizens," wrote a blind
19-year-old Endangered Species
cases the victims are not yet voters."
man to a local newspaper. "They
Act.
Overly restrictive building codes.
ignored the needs of people who
In Riverside County, California,
Experts say the technology exists to
want to live independently in
development has been restricted on
reduce the cost of building an aver-
smaller homes designed with
81,000 acres while authorities study
age-sized house by 23 much as 27
their physical needs in mind.
how much of the area the Stephen's
percent. But these money-saving
When the arrogance of no-growth
kangaroo rat needs. In Walton
measures are frequently forbidden
elitists and the cowardice of politi-
County, Florida, in 1991, U.S. Fish
by local building codes.
cians combine, we get a brand of
and Wildlife Service concerns
Chicago's plumbing code, for ex-
government-sponsdred prejudice
about the Choctawhatchee beach
ample, requires metal pipe for
which should have no place in our
mouse effectively shut down one
many uses rather than the far
society."
large subdivision before it could get
cheaper and simpler-to-install plas-
Unreasonable environmental-
off the ground. And in scrubland
tic. Chicago developer Salvatore
ism. In August 1985 Barbara and
along the Southern California
Ferrera estimates that the extra cost
Alan Tepper signed a contract to
coast, builders fear that the Califor-
for a 1400-square-foot home is
buy a three-bedroom home in a
nia gnatcatcher-described by 2 de-
between $3000 and $4000. Elec-
veloper as "a tiny bird with a big
tric-code specifications require rig-
attorney"-will go on the endan-
gered list.
- 15 -
FROM:HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27, 1992 :15PM #403 .04
"Where there is stringent rent con-
policies and exorbitant develop.
id, as opposed to Rexible, conduits:
trol, no one will build additional
ment fees.
another $3000 to $4000. Special
rental units. The failure to build
2. Provide exemptions to the
venting, pipes and other require-
these units continues the shortage
Davis-Bacon Act mandates on fed-
ments tack on as much as $5000
of housing in that community."
erally funded housing projects.
more. In all, the codes add between
3. Overhaul and modernize the
$10,000 and $15,000 to 2 $100,000
IN NOVEMBER 1989, President Bush
Endangered Species Act. No one
home.
asked HUD Secretary Kemp to
disputes the need for environmen-
The Davis-Bacon Act. Enacted
look into this regulatory morass. At
tal protection, but, says commission
by Congress in 1931, Davis-Bacon
Kemp's request, Governor Kean
member Larry Arnn, "it should be
(and subsequent related acts) re-
and former Rep. Thomas "Lud"
within the context of having one's
quires that builders of federally
subsidized projects pay the "pre-
Ashley (D., Ohio) headed 2 biparti-
priorities right."
san commission to examine the
vailing" wage-as determined by
Secretary Kemp's department is
the Department of Labor. Today
problem in depth and come up with
already putting together more spe-
that law, which hasn't been sub-
practical, common-sense solutions.
cific plans for reform. Over the next
The commission's report was enti-
stantially modified since 1964, has
few months, he plans to buttonhole
tled "Not in My Back Yard: Re-
been estimated to add as much as
governors and address state legisla-
moving Barriers to Affordable
$1 billion to residential construction
tures everywhere.
Housing" and reached Kemp's
"This report is a call to arms," he
costs every year.
desk last summer. Its recommenda-
Not long ago, Boston developer
says. "Housing has become the
tions, endorsed by all 21 members,
Bill Stetson considered bidding for
most overregulated industry in the
provide R blueprint for making
United States, and it is being
a small federally sponsored apart-
housing available-and afford-
smothered by government. Some-
ment project in Springfield, Mass.
able-to all Americans.
If he didn't have to pay "prevail-
thing must be done about it now."
Most of the regulations crippling
ing"-i.e., union-wages, he fig-
housing were set in place by local
ured that he could complete the job
and state governments. What they
for $300,000. Under federal re-
have to do now is help clear away
quirements, however, the cost
the thicket. They should standard-
soared to $550,000. He declined the
ize and simplify zoning regulations
opportunity.
and building codes. They should
The impact of Davis-Bacon is
adopt strict time limits for permit
not limited to public-housing proj-
reviews, and they should lessen the
ects. "It affects all housing," says
crushing burden of impact fees. It is
California Housing Director Coyle.
grossly unfair to single out new
"Builders with federally guaran-
home buyers for infrastructure im-
teed loans, for instance, must pay
provements that benefit everyone.
the highest wage scales, driving up
Congress, too, has an important
prices for middle-income buyers
role. It should:
and often pricing them completely
1. Encourage HUD to withhold
out of the market."
federal subsidies from communities
Rent control. From Boston to
that resort to discriminatory zoning
Berkeley, ordinances determine the
rents of some seven million apart-
ment dwellers. Supporters argue
that rent control helps the poor.
Yet, impartial studies reveal that it
benefits middle- and upper-income
families disproportionately, re-
duces housing mobility and further
erodes the stock of housing that's
still available.
"Rent control drives down sup-
ply," explains Stephen E. Carlson,
executive director of the nonprofit
California Housing Council in Sac-
ramento, "and that drives up the
cost of everything else." Adds
Brookings Institution's Downs:
- 16 -
FROM:HUD PUBLIC AFFAIRS-NEWS
TO:94566231
MAR 27, 1992 6:16PM #403 P.05
HUD News Summary
Major Dailies
WEDNESDAY, JULY 10, 1991
The Washington Times
WARREN BROOKES
n 1989, the Interfaith Hous-
I
ing. Development Corp. of
the Maryland Eastern Shore
bought an abandoned farm
field in Cambridge, in the
Kemp's drive
second-poorest county in
the state.
This non-profit alliance of minis.
tries of various faiths planned to
build 91 units of housing for an aver-
age below-cost price of $55,000 for
against
families in the $15,000 income
range.
But in the spring of 1990, the En-
vironmental Protection Agency and
the Corps of Engineers told them all
but 1.5 acres of their property was
"non-tidal wetlands," and couldn't be
snob zoning
developed. Interfaith offered to cut
the units to 42, and the "disturbance"
to only 13.6 acres, but to no avail:
After $34,600 in costs, the project is
now on hold.
Afforable housing mission
Interfaith is not unique. In 1990,
fundamental effect is to "seriously
a 102-acre subdivision in Bridge.
restrict the amount of buildable land
The environmental:
hampton, Long Island, was halted
that is available for development.
when a tiger salamander was found
This effect raises the cost of what
movement has
on the property. After a year's delay,
landremains for homebuilding."
the developer cut the number of
discovered that
affordable units by half and got his
As an example it cites the plan to
permit.
set aside a 30-square-mile system of
wetlands, endangered
Across the country, the enviton-
preserves within Riverside County,
mental movement, dominated by the
Calif., to protect the allegedly endan-
species and
wealthy and the powerful, has dis.
gered Stevens Kangaroo Rat. The
projected cost of this is $100 million
"biodiversity" have
covered that wetlands, endangered
species and "biodiversity" have been
to $200 million. Already a fee of
been good covers to
good covers to carry out a massive
$1,950 is levied on every acre in the
campaign of "snob zoning." Whole
county that is developed: "Housing
carry out a massive
towns from Lockport, N.Y., to Hamp-
affordability is becoming an inad-
campaign of "snob
ton, Va., have seen most development
vertent casualtv."
stopped by wetlands enforcement.
In fact, it's anything but "inadver-
zoning."
This week, Housing and Urban
tent." Environmentalists consider
Development Secretary Jack Kemp
any development a threat to bio-
declares war on these "snob zoners"
diversity. The Nature Conservancy
ten decreases. Indeed. one of the
with a new study called "Not in My
has worked closely with government
premises of Darwinian evolution is
Back Yard (NIMBY) - Removing
agencies to computerize a national
that disturbance promotes species
Barriers to Affordable Housing,"
inventory of all open spaces and the
development and diversity.
prepared by the Presidential Advi-
possible species impacted. That data
It has become increasingly evi-
sory Commission on Regulatory
bank is routinely used as a weapon
dent that the often irrational ex.
Barriers to Affordable Housing.
to stop development. That often
tremism of federal wetlands and en-
The commission, cochaired by
drives down land values, which inci-
dangered species enforcement is
the impeccably "green" Tom Kean
dentally allows TNC to buy bargains
nothing more than an anti-growth ef.
(former Republican governor of
which they then sell at a profit to
fort by a predominantly upscale en-
New Jersey) and former Rep. Tom
Uncle Sam: TNC now serves as the
vironmental movement to promote
Ashley, Ohio Democrat, looked at all
only non-governmental participant
land-use planning to keep affordable
the ways invented by communities to
in the U.S. Fish and Wildlife Ser-
development down.
stop housing development and iden.
The commission didn't mince
tified two major blocks: regulatory
vice's Task Force on Biodiversity, ad-
words: "The impact of environmen-
barriers (growth controls, exclu-
vising it on "Land Acquisition Initia-
tal regulation on the availability of
sionary zoning, rent control, etc.)
lives."
affordable housing is substantially
and environmental protection.
While the rhetoric of all this has
amplified by the widespread use of
While the commission pays obei-
a veneer of science its basic premise
environmental protection as a
sance to environmental concerns
is flawed. There is growing evidence
stalking horse for NIMBY groups
and regulation. it points out that its
that when areas are locked away
bent on opposing unwanted develop-
from human impact, biodiversity of-
ment. Often environmental con-
FROM: HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27, 1992 6:16PM #403 P.06
HUD News Summary
Major Dailies
cerns raised against the develop.
ment of multifamily or low. and
moderate-income housing really
constitute attempts at exclusionary
zoning."
But it's not just NIMBY groups.
The Riverside County Steyens Rate
controversy is the direct result of a
supervisor in the Fish and Wildlife
Service named Nancy Kaufman who
told The Washington Post that
"humans have reached the limit on
how far they can intrude on the envi-
ronment" and defended the Stevens
Kangaroo Rat ruling, saying, "I'm
not required by law to analyze the
housing price aspect for the average
Californian."
Last winter when the FWS made
the National Forest Service start
shutting down millions of acres of
logging potential in the Northwest to
protect the spotted owl, the futures
price of lumber shot up at the pros-
pect that NFS harvest levels will fall
by 92 percent if the habitat rules are
enforced.
As Larry Kudlow of Bear Stearns
told his clients recently, "In a classic
supply "shock," the ecological de-
cision to protect the spotted owl has
been a tremendous drag on lumber
and plywood output in the West,
driving up prices despite a very
weak housing recovery."
Fortunately, Mr. Kemp and his
ally Vice President Dan Quayle
seem to be winning their war with
EPA Administrator William Reilly
over wetlands extremism, while
Congress is beginning to wake up to
overall property rights, and the ris-
ing groundswell of populist resent-
ment of the snob zoners. Stay tuned.
Warren T. Brookes is a nationally
syndicated economics columnist.
FROM:HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27. 1992 6:17PM #403 P.07
SECONDARY
SMM
MORTGAGE
MARKETS
Winter 1991/92
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Regulatory
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HMDA Data
Low-Income
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FROM:HUD PUBLIC AFFAIRS-NEWS
TO:94566231
MAR 27. 1992 6:18PM #403 P.08
REGULATORY
BARRIERS TO
AFFORDABLE
HOUSING
From the perspective of
someone who cuts through
the red tape.
by Kathryn Wylde
THE NEW YORK CITY HOUSING PARTNERSHIP
housing market. Eighty percent of the
brings business and civic leaders together
financing-more than $500 million-has
to mobilize support for programs that
come from private loans. with the balance
expand the supply of affordable housing
provided by federal, state and city fund-
and to stimulate private investment in the
ing sources. The fact that Long Island
redevelopment of inner-city neighbor-
and other areas have mounted initiatives
hoods. A key component of this effort is
modeled on our New York City program
to control development costs.
is evidence of our success.
Since 1983 the Housing Partnership's
New Homes Program has produced about
A Laboratory for Reform
and Frustration
5,000 homes and apartments in 40 neigh-
borhoods across New York's five bor-
The Housing Partnership's production
oughs. Partnership projects put vacant,
program has provided a laboratory for
city-owned land back on the tax rolls.
identifying and addressing regulatory bar-
revitalize neighborhoods and bring
riers to affordable housing. As an "hon-
homeownership within reach of working
est broker" between government officials.
families priced out of the New York
community leaders, banks and builders,
the Partnership has worked to balance the
Kuthryn Wylde is president of the New York City Housing
Partnership. This article it based on testimony before
desire for safety. low density, design, open
the Advisory Commission on Regulatory Barriers to
space and marketability against the de.
Affordable Housing.
mands of cost-effective construction.
FROM: HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27. 1992 6:19PM #403 P.09
In 1984 the Housing Partnership un-
dertook a 200-home development on
Staten Island. A zoning change and
federal funding were involved, so the
project went through an exhaustive
During the past 10 years; cooperation
environmental review. The project
between government. union and industry
passed all regulatory hurdles, but
leaders has led to some streamlining of
midway through construction the
the local development approval process
State Department of Environmental
and the elimination of certain burcaucratic
Conservation pulled the building per-
obstacles. A Mayor's Office of Housing
mits and brought the project to a halt
Coordination has been established to per-
for 18 months. The site had been
form an expediting and coordinating role
retroactively declared a freshwater
among the 18 public agencies involved in
wetland. While this was a political
a typical affordable housing project.
embarrassment to top city and state
This progress has been offset, however,
officials, they were powerless to in-
One of our Brooklyn projects, which
by a panoply of new regulations enacted
terfere with the technician who de-
was designed to generate permanent
without consideration of their impacts on
cided the wetland status and required
jobs and 600 units of affordable hous-
the achievement of affordable housing
that we reconstruct a natural wetland
ing, had the misfortune of being in
goals.
three times the size of what we had
proximity to what the federal Clean
Examples of public actions in non-
supposedly destroyed. Fear of litiga-
Air Act regulations define as a "hot
housing areas that have direct impacts on
tion and of the political power of the
spot." The environmental review
housing costs include increases in city
environmental lobby outweighed con-
took two years and cost more than
permitting fees (for example, for zoning
ccm about 200 units of affordable
$5 million. Significant resources were
applications, sewer taps, tax abatoments
housing. The consequence was bank-
spent on consultants to determine such
and curb cuts): restrictions on dump sites
ruptcy of the original builder, default
matters as the "modal split" needed for
for construction debris; mandatory instal-
on the construction loan and redesign
environmental sign-off-a process of
lation of water meters; required planting
of the project-with a 50 percent
speculating how many people em-
of street trees and open space; required
increase in home prices.
ployed at the project will walk.
on-site stormwater retention due to over-
drive or take a subway to work. The
load at sewage treatment toxicity
project was approved. but several law-
testing and liability insurance for hazard-
The Beneficiaries:
suits were filed on environmental
ous waste: provision of access for the
Regulatory Entrepreneurs
grounds. After years of litigation, the
handicapped: and mitigation measures trig-
Interpreting and explaining how to comply
Housing Partnership has won two of
gered by proximity to water, historic or
with or circumvent development regulations
these cases, but the disposition of
archaeologically significant sites.
has become a business. It has its own
another is still pending.
Affordable housing sites in urban cen-
technical jargon and vested professional
ters are often located in or near manufac-
interests. The new class of regulatory
turing districts. Under evolving definitions,
entrepreneurs-environmental consultants,
Federal Barriers to Local Reform
virtually any former manufacturing site
lawyers and such subspecialists as traffic
One Housing Partnership breakthrough in
could be a candidate for being listed as a
engineers and noise consultants-are the
the local regulatory and political process
hazardous waste site under federal law.
direct beneficiaries of increased regulatory
was to secure Buildings Department and
While it is relatively casy to get on the
costs and complexities. In New York we
trade union acceptance for construction
federal list, there is not yet a procedure
even have professional expediters who
of factory-built. modular, two- and three-
for getting a site off the list. There are
know in which lines to stand in the
family rowhouses. The economic advan-
no standard guidelines for testing or
Buildings Department.
tages of the modular building system have
remediation of hazardous conditions. fore-
Legislators, political leaders and the
been substantially diminished, however,
ing localities or developers to make up the
general public hesitate to make decisions
by the slow process of plan reviews.
rules as they go along. As a consequence,
about issues they do not understand, par-
inspections and approvals by multiple
it has become impossible to determine the
ticularly when it comes to health and
levels of government.
feasibility or cost of affordable housing on
safety. A private and public technocracy.
When federal funding or action is in-
sites that represent so much of our urban
with virtually no public accountability, has
volved. a project is subjected to an addi-
inventory.
taken over the regulatory process.
tional layer of review.
N
SECONDARY MORTGAGE MARKETS/WINTER 1991/92
FROM: HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27, 1992 20PM #403 P. 10
prepared to invest in local housing at rates
projects during the public approval pro-
about two percentage points lower than
cess, whether they are legitimate environ-
conventional sources.
mental advocates. anti-development
In 1987 a federal court supported a
interests or not-in-my-backyard (NIMBY)
similar affordable mortgage program on
groups. In New York the key test for
the basis that Congress required pension
bureaucratic approval of a project has
investments regulated by the Employee
become, "Can the decision-making pro.
Retirement Income Security Act (ERISA)
cess withstand a nonsubstantive lawsuit?"
to be made at reasonable-not prevail-
ing-rates. Subsequently, the federal
Effects on the Community
Department of Labor, which brought the
The projects hurt most in this overregu-
suit to block the affordable mortgage pro-
lated environment are those located in
gram, changed its regulations to eliminate
communities with the fewest resources.
In 1985 we secured city approvals and
below-market financing. While pension
In the case of government-assisted hous-
financing commitments for an 85-unit
funds can make highly speculative loans
ing. there is also a direct impact on the
modular housing project in a devas-
to finance construction of shopping cen-
taxpayer. Bureaucratic delays on a 50-
tated section of the South Bronx. The
ters and luxury condominiums, they face
home Housing Partnership project in
project was about a block from "Fort
a regulatory prohibition against guaran-
Brooklyn, including a 21-month period of
Apache," the abandoned police pre-
teed investments in affordable housing at
environmental review that ultimately pro-
cinct immortalized by Paul Newman
returns meeting the funds' overall invest-
duced a declaration of no significant im-
and subsequently designated a candi-
ment objectives.
pact, resulted in a $500,000 increase in
date for the National Register of His-
toric Properties. Because our site was
Obstacles from Special-Interest
the public subsidy required.
within six blocks of this property,
Groups
Overregulation also has a chilling ef-
fect on the activities of state and local
the U.S. Department of the Interior
Historically, the special interests that cre-
governments. For example, New York's
reviewed-and rejected-our plans.
ated regulatory barriers to development
obsolete zoning laws have not been up-
(Federal involvement was triggered
came largely from within the industry, for
dated, and a variety of planning and regu-
because we were using a small
example, contractors protecting cast-iron
latory reform efforts have been stymied.
Urban Development Action Grant
plumbing requirements or unions block-
because of the costs of the environmental
(UDAG) as part of the construction
ing prefabricated building components.
impact studies and assessments that would
financing.) The required redesign of
Today, the forces lined up against regula-
be required.
facades put the cost of the housing
tory reform are not necessarily motivated
beyond the local market, and 85
by concern for their own jobs or for the
The NIMBY Report
homes still have not been built.
safety, soundness or affordability of hous-
The Advisory Commission on Regulatory
ing. On the contrary, they may represent
Barriers to Affordable Housing established
special interests whose aims are best
by HUD Secretary Jack Kemp took some
In 1987 we calculated that a modular
served if nothing is built.
courageous steps forward in its final re-
home built in Pennsylvania would cost 30
One such case was played out in fed-
port (see sidebar). In particular, the Com-
percent more to install in New York than
eral court. The court issued an order to
mission reinforced the role of states in
in New Jersey. exclusive of land costs and
stop construction of a housing project for
overriding local zoning and development
profits. The added cost is largely a func-
the elderly sponsored by a nonprofit Latino
regulations that exclude affordable hous-
ion of local government regulation: fees
community group on Manhattan's lower
ing. The report recommends that the
and taxes: professional engineering. ex-
cast side. The court ruled on the basis of
federal government require states and
bediting and legal services: and carrying
a Department of Housing and Urban De-
localities to develop and implement
costs during the 13-month preconstruction
velopment (HUD) regulation against
barrier-removal strategies in order to
and 18-month construction periods. To-
overconcentration of low-income housing.
qualify for federal housing aid. It also
day, New York's regulatory costs are even
This decision delayed construction of
recommends that the federal government
higher. but New Jersey is undoubtedly
desperately needed housing. If upheld, it
consider the costs and benefits of proposed
ratching up. Regulatory barriers increas-
will jeopardize federal housing investment
federal legislation on affordable housing
ngly emanate from federal statute and
in the neighborhoods that most need this
and that a federal Affordable Housing
ase law.
assistance.
Regulatory Review Board be established
Federal Barriers to Affordable
One consequence of such litigation is
to resolve administrative obstacles that
Financing
that the agencies responsible for assisting
confront affordable housing proposals at
and regulating affordable housing focus
the federal level.
Yc have tried to tap pension funds to fi-
on the threat of Iltigation on procedural
However, the Commission report did
ance Housing Partnership projects at
grounds rather than on substantive goals.
not sufficiently deal with the high cost of
avorable terms. New York's building
Increasingly, lawsuits are brought by
the planning, technical analysis, public
rades and other pension funds have been
groups that have not been able to stop
education and professional training that
CONDARY MORTGAGE MARKETS/WINTER 1991/92
9
FROM: HUD PUBLIC AFFAIRS-NEWS
TO: 94566231
MAR 27, 1992 :21PM #403 P. 11
are needed in order to mount a serious
"banicr-removal effort. The Commission
Implementing the NIMBY Report Recommendations
proposes heavy reliance on voluntary ini-
tiatives at the state and local levels. These
initiatives are unlikely to take place.
On July 8, 1991, Department of Housing
States should eliminate duplicate regu.
especially in fiscally strapped localities,
and Urban Development (HUD) Secretary
latory requirements and set time lim.
unless the federal-government provides
Jack Kemp delivered to President Bush the
its for building code and zoning
incentive grants to help pay for the re-
report of the Advisory Commission on Regu-
approvals.
form process.
latory Barriers to Affordable Housing. Titled
State and local governments should
In addition, the Commission report did
"Not In My Back Yard," the report provided
provide the infrastructure needed for
not address several regulatory areas with
31 recommendations to reduce excessive
affordable housing and growth.
enormous impacts on housing affordability.
and unnecessary government regulations
States should stop putting manufac-
One is the area of soil contamination and
that Increase housing costs.
tured housing, duplex and triplex hous-
The commission focused on problems
related liability: another is the impact of
Ing. and single-room-occupancy units
Including exclusionary zoning, building codes
at a disadvantage.
regulatory intervention on the banking
geared to new construction rather than
Concerned organizations should build
industry's real estate lending practices.
rehabilitation, and certain environmental
coalitions, such as the New York City
There is also no proposal for limiting the
protection regulations. Such obstacles add
Housing Partnership, to support
discretion exercised by the judiciary in
$15,000 to the price of a $55,000 house
regulatory reform and affordable
interpreting and redefining laws that af-
in Central Florida, between $20,000 and
housing.
fect the development process, despite the
$30,000 to the price of new houses in
The commission noted that, in the past
fact that litigation is consistently used to
Southern California, and 25 to 35 percent
25 years, at least eight other studies or task
thwart development activity that serves the
to the price of a new house in New Jersey,
forces have addressed the problems of
public interest.
according to the report.
exclusionary, discriminatory or excessive
Among the commission's recommenda-
housing regulations. Despite agreement
Comprehensive Housing Affordability
tions were the following:
among experts and public policymakers,
Strategies
State and local governments should
little has been accomplished.
Institute barrier-removal reforms.
The National Affordable Housing Act
The 1990 National Affordable Housing
Federal housing assistance to state
directed Secretary Kemp to submit his
Act contains the first major federal initia-
and local governments should depend
recommendations for specific legislative
tive for housing in more than a decade. It
on their barrier-removal strategies.
and administrative actions within four
requires states and localities that want fed-
Authority for low-Income housing tax
months of the commission report. The
eral aid, such as Community Development
credits and mortgage revenue bonds
proposals were unvelled in January 1992
Block Grants. to submit to HUD a Com-
should be made permanent; states'
In connection with HUD's budget request
prehensive Housing Affordability Strategy
allocations should depend on having
for fiscal year 1993.
(CHAS), including plans for removing
barrier-removal plans.
To foster state and local action, $10
The federal government should share
regulatory barriers. Typically, the general
million in Community Development Block
with states the costs of Implementing
Grant funds would be set aside to fund
public and members of private industry pay
barrier-removal reforms.
barrier-removal efforts. In addition, HUD
little attention to such intergovernmental
Federal agencies should be required to
has already approved a $1 million award to
submissions.
provide housing impact analyses be-
the National Association of Home Builders'
Those concerned with development is-
fore promulgating major rules or rule
National Housing Research Center to de-
sues should pay attention to the CHAS,
changes.
velop model land development standards
however. Community input will be
Secondary market Institutions should
and legislation for use by states.
solicited in preparing the CHAS, provid-
offer products that serve affordable
Currently, HUD approval is not needed for
ing an opportunity for serious evaluation
housing needs.
the barrier-removal component of the Com-
of state and local barriers and to influ-
Projects under $250,000 should not
prehensive Housing Affordability Strategies
ence which programs receive funding. In
be subject to the Davis-Bacon Act.
(CHAS) prepared by state and local govern-
Federal regulation of wetlands should
addition, the CHAS must be updated
ments. The administration proposes requir-
be reviewed and streamlined.
annually, and states and localities must
Ing HUD approval for all aspects of the CHAS
The Endangered Species Act should
submissions. The administration also pro-
show how federal funds are meeting the
also be reviewed.
poses establishing an Interagency Afford-
needs that have been defined. Contribut-
HUD should work with government and
able Housing Regulatory Review Board within
ing to the CHAS submission and moni-
private-industry groups to develop
the White House so that states will be able
toring its implementation are important
model building codes and statutes for
to "fast track" the processing for their af-
new tools for advocates of affordable
use by state and local governments.
fordable housing projects at the federal
housing and barrier removal.
Each state should reform its zoning and
level.
The CHAS process and HUD's
land planning systems to remove barri-
A regulatory reform clearinghouse already
follow-up to the Commission recommen-
ers to affordability.
has been established within HUD to provide
dations are promising developments
States should establish procedures to
Information to bullders, governments and
for regulatory reform at all levels of
resolve disputes between developers
affordable advocates. Also, a barrier-removal
and local governments.
officer has been appointed.
government.
SMM
10
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001
ALDERAL COMMUNICATIONS FC COMMISSIONER
FEDERAL COMMUNICATIONS COMMISSION
Telefax Cover Sheet
USA
Date 4/24/92
FROM:
Name:
Yvette Barrett
Bureau/O:
Office of Plans and Policy
Phone:
202/653-5940
Fax Number:
TO:
Name:
James Gattuso
Organization:
Office:
456-1649
Fax Number: 456-6231
SPECIAL INSTRUCTIONS:
This Cover Sheet is Page 1 of 15 Pages
Photo Copy Preservation
/
PEDERAL
FC
USA
NEWS
News media information 202 / 632-50!
Recorded Noting of releases and texts
202/832-0002
FEDERAL COMMUNICATIONS COMMISSION
1919 M STREET. N.W.
WASHINGTON, D.C. 20554
TDO 202/632-6999
22249
This = an unotticial announcement 01 Commission action Release of the full Mixt of 8 Commission order
constitutes official action See MCI V FCC. SIST 20 sas ID.C. Care we
Report No. DC-2073
ACTION IN DOCKET CASE
March 12, 1992
NATIONAL AND LOCAL RADIO OWNERSHIP RULES
AND FCC'S TIME BROKERAGE RULES MODIFIED
(HM DOCKET 91-140)
The Commission has revised the national and local radio ownership rules, as
well 28 its time brokerage policies, to reflect the profound changes in the
radio industry over the past decade.
It revised the national ownership limit so that a single licensee could own
up to 30 AM stations and 30 FM stations nationwide. The previous limit was 12
of each service.
On the local level, in markets with fewer than 15 stations, a single
licensee will be able to own up to three stations, no more than two of which
are FMs, provided that the owned stations represent less than 50 percent of the
stations in the market. AM-FM combinations would be allowed in any event. In
markets with 15 to 29 stations, a single licensee will be able to own up to two
AMs and 2 FMs, provided that the combined audience share does not exceed 25
percent. In markets with 30 to 39 stations, a single licensee will be able to
own up to three AMs and two FMs, provided that the combined audience share does
not exceed 25 percent. In markets with 40 or more stations, a single licensee
will be able to own up to three AMs and three FMs, provided that the combined
audience share does not exceed 25 percent. Current rules prohibit ownership of
more than one AM and one FM in the same market.
The Commission will not permit same-service simulcasting to exceed 25
percent of the broadcast hours of either station involved, if those stations
overlap and the overlap area constitutes more than 50 percent of either
station's service area.
The Commission did not impose additional restrictions on joint ventures
Photo Copy Preservation
other than time brokerage agreements (sometimes known as Local Marketing
Agreements or LMAs) involving stations in the same market. Given today's
relaxation of the local ownership rules, widespread and substantial time
brokerage among such stations could undermine broadeast diversity and
competition. Accordingly, & station brokering time on another station serving
the same market will be considered to have an attributable ownership interest
in the brokered station for purposes of the Commission's multiple ownership
rules. As a result, & station will not be permitted to time broker another
local station which it could not own under the revised local ownership rules.
The Commission also prohibited a licensee from simulcasting more than 25
percent of its programming on another station in the same service through a
time brokerage arrangement where the brokered and brokering stations serve
substantially the same area.
(over)
002
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In addition, licensees involved in time brokerage agreements will be
required to keep those agreements in their public files, with confidential or
proprietary information redacted- as necessary. Licensees will also be required
to file with their ownership reports copies of any IMA agreements in which they
are involved.
The new rules will allow for increased group ownership of radio stations,
and economies of scale and, in turn, will help stations to remain viable in the
increasingly competitive media marketplace. The number of radio stations
continues to grow, as does the number of non-radio outlets, such a8 cable,
that compete with radio broadcasters for audience and advertising.
The record in this proceeding reveals that allowing some greater degree of
consolidation will result in further diversity and competition in the radio
industry. The evidence reveals that the mass media marketplace in which radio
competes, and the radio industry itself, are highly competitive. The ability
to consolidate will strengthen radio's ability to compete in the marketplace.
With respect to diversity, the record indicates that group owners grant
individual stations editorial autonomy. Moreover, the evidence suggests that
commonly owned stations tend to offer more public service programming than
other stations and, because they generally have higher ratings for their local
news programming, may be responding to viewer demand for news more effectively
than stations not commonly owned.
The changes adopted today will significantly strengthen the radio service as
& whole and assist radio broadcasters in improving their service to the public
in an increasingly competitive environment.
The Commission directed the Mass Media Bureau to prepare an annual report to
assess the effect of these revised rules on the radio industry, including their
impact on competition, diversity, and minority ownership.
Action by the Commission March 12, 1992, by Report and Order (FCC 92-97).
Chairman Sikes, Commissioners Quello, Marshall and Duggan with Commissioner
Barrett abstaining and Commissioners Quello, Barrett and Duggan issuing
separate statements.
- FCC -
News Media contact: Rosemary Kimball at (202) 632-5050.
Mass Media Bureau contact: Jane Hinckley Halprin at (202) 632-7792.
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Federal Communications Commission Record
Statement of Commissioner James H. Quello
publishing industries. In the end. however, I was
Report and Order,
persuaded that a more moderate approach to
altering the national ownership limits would
Revision of Radio Rules and Policies
allow the Commission to monitor the effect of
tule changes. If experience reveals that we have
chosen the wrong number, there will be time
As has become clear to everyone familiar
enough to address the simarion.
with the radio industry. we are living in a totally
different world today than in 1953 when our
Similarly, if I had the only vote, 1 would
ownership rules were adopted. At that time, it
was difficult for a person who had a radio license
have been somewhat more cautious in altering the
duopoly rules. In particular. [ am uneasy about
to fail. But today, with the splintering of
allowing ownership of three AM and three FM
formats and the advent of competition from new
stations in a single market. [ would have
nonbroadcast media, it is difficult to succeed. The
preferred setting the limit at two AM and two
problems facing radio are not the result of a
FM stations. Ultimately, I was willing to go
temporary slump brought on by a bad economy.
along because such levels of ownership will be
They go to the heart of radio's future as a viable
allowed only in the very largest markets and
mass medium in this country.
will be subject an audience cap of 25 percent.
Additionally. the Mass Media Bureau will
1 think this Report and Order is a responsible
prepare an annual report OR the effect of these
adempt to address these new realities. Of course,
changes, and we will be able to revisit the
reasonable people may disagree about the precise
question of duopoly limits, if it becomes
number of stations that a single owner should be
necessary.
permitted to acquire. Some have suggested that
there should be no limits - a position with
There undoubtedly will be spirited
which I cannot agree. Others have argued that
disagreements about the final choices we have
there should be no change, and. again, the facts
made. just as there were among all the
force me to reach a different conclusion. Once it
Commissioners who chose to participate in the
became clear that we must find a middle ground.
extensive internal debates in this proceeding. To
it also became clear that there is no
critics, I would simply suggest that a good
metaphysically perfect answer. Perhaps no
starting point for discussion would be 9 indicate
politically perfect answer, either.
what makes one policy choice inherently more
reasonable than another.
Recognizing the difficulty of this task,
Chairman Sikes took particular care in this
The one point about which all agree is that
proceeding to provide all offices with the
the radio industry is in bad shape. There may be
findings of the Mass Media Bureau and solicited
many causes for this. but to debate them and point
ideas from all of the Commissioners. Of all of
fingers is not very productive. We have been
the proceedings that have come before this agency
considering the volumes of comments in this
since the Chairman arrived in 1989, I believe this
proceeding for most of a year and the time to act
proceeding has involved the most open exchange
is upon us.
of views among the Commissioners. The give and
take was genuine, and the Chairman should be
I may not be entirely comfortable with our
commended.
choice, but I am completely at ease with the
honest, open and thorough process by which we
This does not mean that the final outcome is
reached it
what I would have crafted myself. I initially
believed that the national ownership caps could
have been relaxed even more. since there is no
danger that a single owner could dominate the
national radio market. This is particularly true
when the level of concentration in radio is
compared 9 that in the cable television or
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March 12, 1992
STATEMENT
OF
COMMISSIONER ANDREW C. BARRETT
IN RE: 140] REVISION OF RADIO RULES AND POLICIES [MM DOCKET NO. 91-
In my two years and seven months at the Commission, I have
rarely dissented from an action the FCC has taken. I have issued
a number of separate statements and concurred on several
occasions, but rarely have I been forced to dissent from a
Commission action. In fact, if I voted today, based on what I
opinion since arriving at the Commission. [See KARK-TV, Little
know at this point, this would only be my second dissenting
Rock, Arkansas: Fairness Doctrine, adopted Dec. 31, 1991.]
which to base a vote, I am refraining from issuing a final vote
However, because I have insufficient information before me upon
until I receive a complete Report and Order detailing the
rationale of these decisions. By abstaining today, I want to
emphasize my grave concerns that the actions taken by the
majority today seem to be based more upon wishful thinking and
personal goals than upon a thorough and balanced examination of
!
real-world market implications, public interest concerns and
economic factors. This should not have been a decision to
provide relief to the radio industry by blindly attempting to
eradicate our structural rules and attendant public interest
concerns and then backing off to the compromise adopted today.
Rather, this decision should have been premised upon real-world
market implications, both short and long term. Restructuring the
industry to the extent the Commission has done today is not
necessary to address the issues of increased competition for
media revenues. Instead of grossly eradicating the current
ownership structure in order to concentrate industry revenue
among fewer, well-funded, and larger radio industry players, I
would have preferred a more modest relaxation of the rules phased
in over a period of years with a subsequent thorough market study
of the implications of such actions. Additional flexibility from
any modest relaxation should have been on a strict waiver basis
only. If necessary, in order to further address the revenue
side, I would have preferred to subsequently explore the
possibility of seeking ways to give broadcasters more
flexibility with the use of their existing spectrum; particularly
in light of ongoing advances in digital and compression
technologies. Such an examination would determine whether
existing broadcasters could be provided with long-term incentives
to modernize their facilities in order to use their spectrum
efficiently and derive more sources of revenue from their
1
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005
existing spectrum. However, instead of taking an approach that
could create additional economic activity in the long term, the
Commission embarks on a quick-fix program that will result in
shorter-term bursts of radio station trading. The beneficiaries
of such shorter-term activities will be station brokerage
companies and a few large-group owners with deep pockets. In the
long term, the likely losers from this action will be small radio
group owners, stand alone radio station licensees, small market
radio station licensees; new entrants, and last, but not least,
the public. It is the long-term, real-world market implications
of the structural changes adopted in this Order which bother me
the most. It is clear to me that this Order is the first step in
a series of actions to make radical modifications to the
ownership rules, not only in radio, but also possibly in the
television industry. Even if the record does not clearly support
such actions, this Commission seems intent on modifying all of
the Commission's structural rules. I am sorry that the American
listening public and the radio industry will be required to
withstand the gross experimentation undertaken with the
ownership rules in today's Order. Perhaps, upon further
examination during reconsideration and appeals, the real-world
implications of these actions will be examined more thoroughly
and more rationally. Clearly, further examination of these new
rules will be required by Congress, the public and the courts.
I abstain from voting on the action taken today on several
grounds. First, procedurally within the Commission, I was
provided with a "market sensitive" draft Order two weeks ago
that, as reported in the press, this draft Order proposed to
eliminate all of the national rules and relax duopoly rules to a
25% market share test, except in smaller markets [i.e. less than
8 voices], where up to 3 stations could be owned. That draft
Order presented arguments that attempted to provide a rationale
for eliminating the national rules and drastically increasing the
local ownership rules. That is the only draft Order I have
received upon which I can base a vote. The other document I
received late yesterday afternoon, is a one page proposal for
national and local ownership caps. 1 That document, along with
another document on time brokerage decisions, appears to be the
basis for Commission action today. I have received no Order
explaining the rationale and record support for these decisions.
The original draft Order explains why we should eliminate the
national rules; there is no explanation for 30 AM and 30 FM
stations national cap. The original draft Order also explains
why we should adopt a 25% audience share limit for local
ownership; there is no explanation for the present four-phase
local ownership labyrinth voted on by the Commission today. Nor
1 Based upon press phone calls and specific inquiries, it
appears that the press had knowledge of this most recent
ownership limit document even before I received it in my office.
2
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world have I received any draft Order explaining the cumulative
voting this docket until I see the complete written Order from
adopted in today. Thus, as a procedural matter, I abstain
implications of applying the new national and local rules real-
supporting the decision.
Second, based upon the two pages of decisions I
presented the with yesterday, I have several serious concerns was
adopted today. First, I am concerned about the sufficiency ownership of
combined effect of the new national and local about rules
Rulemaking in this docket generally asked whether there
Commission attempts to address today. The Notice of Proposed
market analysis that provides the impetus for the action the
asked need to change the ownership rules for the AM service. was It also a
for whether there was a similar need to change ownership rules
memo them indicates that 287 radio stations are currently dark, 153 of
FM. The January 29, 1992 Mass Media Bureau radio industry
the within the past 12 months. There is no further analysis of
located in, and the local economic conditions in those markets.
type of stations that went dark, what markets they are
Based upon a December 17, 1991 Mass Media Bureau list, it
appears that approximately 170 AM stations and 40 FM stations
have gone silent for 6 months or more. Thus, based on these
figures, it appears that more relief is needed for AM service
than FM service, yet no differentiation is made in the national
rules adopted today. Nor is any explanation provided at this
point. further. I await the Order to explain some of this market analysis
I also am interested in understanding how the Order will
differentiate the shorter term impact of the recession and
corporate restructurings on radio market revenues and profit
trends from the longer-term impact of increased media
competition. It is misleading to cite only recent industry
statistics from the last several years to buttress support for
significant eradication of the ownership rules based on
decreasing revenue trends; those figures also must be analyzed
with respect to the compounded effect of recession and corporate
restructurings. Without further market analysis of short and
long-term trends, it is difficult to determine how much of the
current advertising revenue trend could be changed by an improved
economy and stabilizing corporate structures. Thus, my
discomfort with voting on any action without this type of
thorough market study.
With respect to the decision to change the national and
local ownership rules, I am very concerned about the market
implications of the potential restructuring of the radio
industry 30 AM stations and 30 FM stations represents a 150%
increase over the present 12/12 limit on national radio
ownership. Also, allowing anywhere from 3 to 6 stations to be
owned in a local market, subject to a 25% audience share cap,
3
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commercial of AM and FM stations [ie. approximately due
total number might argue that on a macroeconomic scale, limits. to the
represents While some up to a 200% increase over the present duopoly
this disagree. I am concerned- that the real-world implications numbers, I of
competing media voices, these are insignificant and
AM and 4588 commercial FM radio stations] 4984 other
national rule change, in combination with the
ownership local level. rules, could result in drastic ownership new local at the
changes dustry perspective, the cumulative impact of implementing these
paper ir doesn't appear to have much impact from something a "macro" on
that Thus, while it is easy to draw up changes
owners industry memo, there is an indication that the top 10 radio
perspective. For example, in the Mass Media Bureau
will have significant impacts from a micro, local
handful of [i.e. 12 AM/12 FM]. In fact there appears to only of be 24 a
stations these groups were listed as owning the full limit 1990,
none of account for about 15% of industry revenue. As of group
and top 50 radio stations accounted for 11% of industry revenue limits.
The groups that are at or near the current 12/12 2
50% of industry profit in 1990; part of which was
could recessionary period. Under the rules adopted today, these a
stations potentially get together to combine acquisitions of the groups top
in most markets. For example, in markets with 40 or
more stations like New York, Washington D.C., Chicago, San
10 Francisco, or Los Angeles, several groups could own 3 of the top
stations in each market without surpassing the 25% audience
market, with average audience shares of 3 or less? Based
take effect, what's left for the remaining 30+ stations in the
reach cap. After all the economies of that type of consolidation
market realities they either will be forced to consolidate on with
this significant detrimental impact on radio ownership diversity from a
another group or leave the market. In my view, there will be
diversity is anecdotal, at best. Thus, I remain concerned program about
argue that increased group ownership will not impact
type of consolidated structure. 3 Further, any attempts to
the real-world implications of this action today.
creates a labyrinth of national and local rules that have not
implications, I also am concerned that the Commission today
In addition to concerns about potential real-world market
Radio Operators Caucus of the National Association of
been provided by nor commented upon by industry experts. The
Broadcasters recently testified that the radio group operators
2 Based on general industry figures, it appears that there
are only five or six groups that are even close to the 24 station
(12/12) limits.
Video Marketplace, July 11, 1991.
3 See Commissioner Barrett Separate Statement on Changing
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supported a cautious approach to relaxing the radio ownership
rules; specifically they proposed 25 AM/25 FM for national rules
and 2 AM/2 FM for local rules.4 Large group owners who commented
in the record of this docket, proposed modest relaxation of the
national and local rules. For example, CapCities/ABC proposed a
total of 30 stations, and a relaxed waiver policy allowing
ownership of a second AM and/or FM. Great American, proposed
moderate expansion of the national limits. Group W proposed 25
AM/25 FM and up to 4 stations in local markets, no more than 2 of
which can be FM stations in the top 25. Bonneville proposed 18
AM/18 FM in first 3 years, and 24 per service in 3 years.
Bonneville also proposed 2 AM and 2 FM. Even CBS which proposed
eliminating the national rules, supported 2 AM and 2 FM in local
markets, with a waiver policy for a third station. What then is
the source for the complicated combination of national and local
ownership limits adopted by the Commission today? Where does the
25% audience share limit come from? Why is that considered an
effective limit on ownership diversity when you can still combine
the largest stations in the top markets? Where do the local
market size breakdowns come from in the record? What is the
impact of using a reception test to determine the number of
voices in a market as opposed to a city of license/transmission
test? Does it potentially skew the markets to make smaller
markets look like larger markets in order to allow more relaxed
local numbers? What impact will allocations of expanded AM band
stations have upon these new ownership limits? I will likely
read about the answers to these questions in the press before I
ever get any Order explaining these actions.
The actions taken by the Commission on Time Brokerage also
cannot be viewed in isolation. To the extent we have
unnecessarily loosened the local ownership rules, I am concerned
that any additional flexibility allowed in this area will only
worsen the consolidation impact of today's action. I await the
Order in this regard before making any final statements about
this aspect of the item.
In addition to all of the above concerns, I also am
concerned that the Commission appears to be paying lip service to
the impact of these changes on our minority ownership policies.
Congress, in appropriations riders, has directed the Commission
to avoid taking any action that would modify our current minority
ownership policies. This Commission, Congress and the Courts
have supported and upheld our minority ownership policies. The
decision in the Metro Broadcasting case highlights the
importance of Commission and Congressional support for our
4 See Testimony of Richard Ferguson before Senate
Communications Subcommittee, March 11, 1992.
S
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minority radio ownership policies. S Our 1984 Order, addressing these
structural ownership rules. These structural ownership
concerns addressed by the minority ownership incentives in our
ownership limits, acknowledged the important public policy
incentives form a predicate for market activities that utilize
distress sales, and tax certificate] in station transactions.
the minority ownership policies [i.e. comparative hearing,
ownership cap will have no detrimental impact on new entrants.
Thus, it is disingenuous to argue that eliminating the minority
Today, the Commission takes such an action. In light of the
appropriations rider, I wonder whether this action violates the
intent and will of Congress. I am particularly concerned about
this in light of other Commission actions being proposed at
today's meeting. I will continue to monitor Commission actions
in this regard. I do not believe that the annual Bureau
reporting requirement adopted today will have much positive
impact on Commission activities regarding new entrants or
minority ownership. Thus, I view this aspect of the proposal as
a symbolic gesture. Further, given delays in following up on the
1990 Minority Conference and Small Business Advisory Committee, I
question the real interest in these issues. I hope we will see
positive steps in this regard; any backtracking from the action
taken today will only exacerbate my concern of the real
motivations in this area.
I view the action taken today as an integrated package with
interrelated effects in the local markets. I do not support the
overall action taken, particularly without any written Order to
analyze. Based on a review of this docket, I would have been more
interested in a phased-in approach with stricter alternatives to
the actions taken today. I am cognizant of the economic situation
affecting radio station owners. I also am aware of the increased
competition being experienced in the radio industry. I believe
this competition is a long-term trend that should be addressed.
Thus, I was willing to support a more restrictive but reasonable
relaxation of the rules to address this longer term issue.
However, I am concerned with supporting any structural
modifications to the rules based on the compounded effect of
shorter term dislocations in the advertising marketplace.
Factors such as the recession and the impact of corporate
restructurings are shorter-term situations which may be rectified
as the result of economic recovery. Thus, while I am willing to
grant flexibility in non-structural areas, such as local
marketing agreements, to address these short-term factors, I am
unwilling to support changes that could result in a drastic
restructuring of the radio industry. I believe additional and
more thorough market studies are needed. Such studies could
address the market variables, both short and long term, that
5 See also, Lamprecht V. FCC, D.C. Cir. No. 88-1395
(February 19, 1992).
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vote. industry. Without these actions, I abstain from today's in
radio impact the advertising picture, diversity and competition the
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March 12, 1992
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STATEMENT OF
COMMISSIONER ERVIN S. DUGGAN
In Re Revision of Radio Rules and Policies (MM Docket No. 91-140)
This Commission has a mandate from Congress to regulate
broadcasting in the public interest. Perhaps no mass media
service under our jurisdiction has been as historically,
fundamentally close to that interest to the communities and
towns of this country as radio. Yet, over the course of this
proceeding, it has become abundantly clear to me that the face of
the radio industry is changing dramatically and permanently
and that the ability of radio to continue to serve the public
interest is suffering as a consequence. The actions we take
today are a moderate attempt to deal with these sea changes and,
ultimately, to help a stable and profitable radio industry
continue to provide the programming, news and community service
that we have long expected from it.
In recent weeks, nearly 80 sets of comments have arrived
in my office supporting changes in the Commission's radio
ownership rules: comments from such places as North Beverly,
Massachusetts, East Lansing, Michigan, Lufkin, Texas and
Sacramento, California. The great majority were not the
impeccably written, extensively footnoted, word-processed
products of large law firms. Often, they were often simple two-
and three-page letters. Were they part of an organized campaign?
Perhaps many were. But they were not the standard canned
argument.
These comments, rather--- all of which were added to the
record in this docket were often poignant and persuasive pleas
for regulatory change from stations that are struggling to serve
their audiences in an increasingly beleaguered radio marketplace.
One such plea came from the Chairman of station WNUS in
Belpre, Ohio, whose letterhead read, with a note of pride, "Radio
Gets Results!. Serving the Parkersburg, WV/Marietta-Belpre,
Ohio Market." "I have been in the business of owning and
operating Racio Stations for the past thirty years, the letter
read. "In all of that time, I have never experienced the
dilemma that each and every broadcaster is experiencing today.
"All markets, large and small," it continued, "face the
very same problem of too many facilities. The smaller markets
are suffering a disproportionate hardship because of the lack of
advertising dollars
too many stations
not enough
advertising dollars to 80 around. What has been a fairly stable
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industry in the past-has turned into a day-to-day survival
game
[T]he station that goes into Chapter 11 last is the
winner.'
The consequences? "The base premise of 'community
service, the writer said, "becomes increasingly difficult to
perform without the assistance of talented people to execute
these programs on a daily basis. Talent costs money."
A group owner in Indiana wrote: "The loser in this
[crisis] is obviously the public
Stations can't afford a
local news staff. Stations can barely pay the minimum number of
people to keep the station on the air, let alone a local news
staff
What a shame to harm the public in this manner, he
said.
"Those in our government who would scoff at such examples
and scoff at the utter seriousness of this situation are
shortsighted, indeed. The crisis is real and it is now."
I cite these letters not simply because they are so
clearly genuine or so compelling, although certainly they are
both. 1 do so because they accurately represent the gravamen of
the comments received in this docket supporting meaningful
changes in the Commission's radio ownership rules as a means of
addressing these severe challenges. The comments cut across
groups, individual stations, small markets, large markets, trade
associations, brokers, banks and former broadcasters. In the
aggregate, they tell the story of an American audience that is
increasingly ill served when much of the radio industry that
serves the public must struggle just to survive.
Unfortunately, these listeners do not have a powerful
lobbying group keeping them informed of these problems and
pressing their interests at the FCC. But I strongly believe that
if they fully understood the depth and permanency of the
structural erosion of the industry, they, too, would have flooded
us with calls for action. It is their long-term interests that I
have foremost in mind in moderating some of the FCC's structural
rules affecting ownership in the radio industry.
The statistics that piled up during this proceeding
dramatically underscore the anecdotal evidence. The FCC's Mass
Media Bureau found that half or more of the nation's 10,000
commercial radio stations lost money in 1990. Average AM profits
dropped by half; average FM profits dropped by fully a third.
One half of one percent of all stations accounted for 50 percent
of the industry's profits in 1990.
These numbers are alarming. They are not merely an
artifact of the current recession. On the contrary, we found
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that they arise from a trend that began in the mid-1980s and has
not abated. The industry's financial base is rapidly eroding,
spurred both by the glut of stations and aggressive new
competitors, including cable. Cable advertising sales reached
$3 billion in 1991, an 18 percent increase from the previous
year. Most broadcasters now view their local cable systems
which are undeniably a fixture of the mass media landscape
as
their primary competitor for local advertising dollars. These
competitive forces are here to stay.
So there we have it: The numbers and the comments in the
record support the conclusion that stations across the nation
cannot continue to serve their communities under current
conditions. This fundamental truth provides the foundation for
our actions today.
I must say, however, that the solutions advocated by
many struck me as extreme. Some recommended abolishing the
national ownership limits. Some called for radical reform of the
local ownership rules, including a no-holds-barred approach to
the ownership of as many AM and FM stations in 2 single market as
any owner could achieve.
The guiding principle for me throughout this proceeding,
however, has been to find a solution that would bring significant
progress without endangering the Commission's traditional goals
of localism and diversity: an incremental approach, not radical
and dangerous surgery. I believe incremental change in the
ownership rules is important for two reasons. First, as the
foregoing comments illustrated, we can now see some decidedly
unwelcome results of radical actions in the past. Perhaps the
best example is Docket 80-90, which added nearly 700 new FM
stations across the country. We have seen that 80-90, however
well-intentioned, was an economic disaster for the industry.
While the FCC, perhaps, could not have completely foreseen the
consequences, the result convinces me that precipitous regulatory
change, even when undertaken in the name of competition and
economic growth, is much more complicated than we can fully
anticipate. Better, then, to 80 carefully.
A second point is that we cannot yet predict the impact
of oncoming new technologies like DAB and multichannel cable
radio. These forces are likely to have an even more profound
effect on the equilibrium of the radio industry and on the
important public interest goal of localism. Thus... although 2
significant part of the record argued for it, and our own Mass
Media Bureau appeared to endorse it I never believed that
decimating the ownership rules would be wise.
At the other extreme, some favored clinging to the status
quo. They urged us to freeze the existing rules, or to make
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-4-
changes so small as to be largely symbolic. Neither of these
options, in my view, would allow the industry to rejuvenate
itself in a way that would lift every boat.
Fortunately, the Commission in its action today has
steered a course between radical change and regulatory paralysis.
The new rules we adopt today hew closely to a structure that I
favored from the outset of the Commission's discussions of these
issues. They reflect an extended, serious dialogue among the
Commissioners--- one that Chairman Sikes actively promoted in a
process of consensus-building. His role in crafting these rules
was crucial, and he is to be commended for the leadership he
demonstrated throughout the process.
The Report and Order represents a genuine victory for the
public interest. It is the essence of measured change: a
reasonable relaxation of the rules, not a destructive explosion
of them. Today the Commission acts in a way that is true to the
record and true to the principle of incrementalism. Our actions
do not gut either the national ownership caps or the duopoly
limits, which are particularly vital, in my judgment, to
maintaining diversity, local community service and healthy
competition. Our actions also feature significant new standards
for time brokerage or "local market" agreements, which I feared
were out of control and threatened a mockery of our ownership
policies. I believe that our new rules clearly signal that the
FCC strongly prefers to encourage ownership over LMAs, and that
licensees who enter into such arrangements must, as trustees of
the public interest, retain full editorial, financial and
managerial control of their stations.
Our rules must operate in the real world. As part of our
actions today, we make a definitive commitment to undertake an
annual real-world review of the results of our rule changes. We
direct the Mass Media Bureau to prepare and present to the full
Commission a yearly study of the impact of the rules on
competition, diversity and minority ownership. As part of that
process, we will carefully monitor market shares of both national
and local radio combinations, and the Bureau will recommend any
Commission response that may be appropriate. I strongly
supported including such a provision. I view it as crucial. I
believe that the FCC is under a heavy burden to prove itself
faithful to its own goals of competition, local service and
diversity in the radio industry, and the review will help us to
remain so.
In particular, I will treat the annual report as a
recurring summons to promote minority participation in
broadcasting. If our actions today should prove to have any
negative effect on minority ownership, I will insist that we take
swift and effective remedial action. Our rule changes must
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015
-5-
encourage opportunities for expanding minority broadcast
interests, and we must be vigilant to ensure that those
opportunities are realized.
Finally, I would note that only two-thirds of the "12-12-
12" rule is revised today. While the Commission's current
Inquiry into the state of the video marketplace raises the
possibility that we might reexamine the last "12," I would simply
underscore that the nation's radio and television marketplaces
are different in many fundamental ways. Entirely distinct
concerns would drive any proceeding dealing with television
ownership rules. Thus, while I support the reforms we adopt in
this Report and Order, no one should draw the automatic
conclusion that our actions here implicate in any way the issues
raised in the video Inquiry.
In this action- so feared by many, so urgently desired
by others we navigate prudently between the Scylla of
deregulatory excess and the Charybdis of inaction. What we do---
both process and result will be scrutinized, as it should be.
I believe that it will withstand that scrutiny as an example of
significant, but prudent, change undertaken for the benefit of
the American public.
1 # #
Photo Copy Preservation
budget, addi-
programs
do
rector for the agency
players are prime recruiting terri-
tional $500 million to be used in
day sessions, SO no children were
tions in central Ohio.
to do. Tomorrow I'll be SO busy,
ory.
the education of preschoolers
around when "some classroom
More than a dozen other
it be over before I know it."
Unfortunately, the edict also
ncludes younger kids. Avers can't
ven show up to shake hands. An
SU appeal to the Big Ten was
Columbus
ejected.
roots run deep in Bush family
Because the ruling doesn't af-
Maine, Connecticut and Tex-
ect Division III schools, Reyn-
Scioto Country Club golf course.
Ids, Kennedy and Mehaffey still
as all have claimed George Bush
In addition, he was the first
as their own, but there is no
The president's visit
lan to participate. Ayers will
president of the Ohio Manufac-
denying that Columbus, where
end some of his players. Regis-
turers Association and helped
the president visits today. con-
ration is open until Friday at 443-
reorganize the Ohio Chamber of
2 p.m. - President Bush arrives at Port
tains many of his family roots.
332.
Commerce.
Columbus.
Rules are rules. But maybe the
Bush's grandfather Samuel
He was a member of St.
2:45 p.m. - He begins a 55-minute visit to
CAA should take a second look
P. Bush came to Ohio from New
Paul's Episcopal Church until
the St. Aloysius Family Service Center, 35
this one.
Jersey in 1890 at age 27 as a
1919 and later joined Trinity
Midland Ave., that includes a briefing on
supervisor for the Pennsylvania
Episcopal Church.
the Head Start program and visiting a
SYLVIA SALUTE - Sylvia
Railroad. He stayed nine years,
ioggia doesn't get ugly to stand
In 1929, Samuel Bush moved
Head Start class.
leaving in 1899 to become a gen-
to a 60-acre estate, Ealy Farms,
5:30 p.m. - He attends a private,
the spotlight.
eral superintendent for Chicago,
at 3239 Mann Rd. in Blacklick.
$5,000-a-couple Republican fund-raiser in
But the proprietor of Sylvia's
Milwaukee and St. Paul Railway
He died in 1948.
the Hyatt Regency Columbus.
ack Door didn't have any choice
Co.
His brother, Harold M. Bush,
6:30 p.m. - Bush will speak for about 10
sterday as the Multiple Sclero-
He returned to Columbus two
the president's great-uncle,
minutes at a $2,500-a-couple dinner in the
Society kicked off the UGLY
hallenge at the Holiday Inn on
years later as vice president of
came to Columbus in 1891 and
hotel, then depart for the airport to return
Buckeye Malleable Iron and
me Avenue.
served 41 years in the Ohio Na-
to Washington, D.C.
e
Coupler, later Buckeye Steel
Saluting Sylvia's 10 years of
tional Guard. He was commis-
Dispatch graphic
t
Castings, 2211 Parsons Ave. He
ce-setting fund raising with the
sioned as a brigadier general in
served as president of the com-
ive that formerly was the Ugly
the Army by President Coolidge.
C:
pany from 1905 until his retire-
Prescott Bush attended Yale
Robinson, a Marysville resident,
rtender contest, the MS Society
The president's father, Pres-
8
ment in 1927.
University and later moved to
ve her a custom-designed neon
cott Sheldon Bush, was born in
served on the Ohio Supreme
ti
An avid athlete, Samuel Bush
Connecticut, serving in the U.S.
in to hang in her pub. It pro-
the family home at 599 E. Broad
Court from 1917 to 1924. Her
1:
founded Columbus' first ama-
Senate from 1952 to 1963.
ims Sylvia's the Ugliest Bar In
St. in 1895 and attended Douglas
father, Marvin Pierce, was a
st
nerica.
teur baseball league and first
Elementary School. He also at-
The president's wife, Barbara
businessman in Dayton and later
After raising more than
tennis club. He also was involved
tended Columbus Academy,
Bush, also has ties to Ohio. Her
president of McCall Publishing
SC
50,000, she's earned the title.
in organizing and designing the
which his father helped found.
maternal grandfather, James E.
in New York.
S:
W
WELL VERSED - Cybil Car-
re
tells great stories around the
COLUMBUS DISPATCH 2-8-90
ner table.
ide
Take this bit from Billy, the
Be patient
-
better
th
k she wrote with late husband
ne
y Carter:
the
"Billy could always make a
of his behavior. Once he re-
'Dispatch' is on way
Da
ed a letter of censure from the
my
se Club after getting into a
and
Color photographs and re-
The Dispatch and its produc-
there in which he lost a front
vamped graphics. The late break-
tion crews are attempting to make
h. The letter said Billy's con-
ing news and sports from around
the transition to printing at the
was 'ungentlemanly.'
C
the country and the world.
new facility as painless as possible
Billy wrote back that if he
All of that will be available
for readers.
se
been a true gentleman to
n with, he never would have
each morning to readers of The
Learning to use the four mas-
ed the Moose Club."
Columbus Dispatch as soon as a
sive presses in the West Side plant
hould make the widow of for-
means extensive training for the
sho
$120 million production facility on
president Jimmy Carter's
the West Side is fully in operation.
press operators. The 120-foot-
"ha
By early summer, The Dis-
long, 50-foot-high presses employ
unio
-drinking brother a great
patch will bloom with greatly ex-
the most sophisticated technology
of C
1 as the speaker for the Co-
us Area Council on Alcohol-
panded color capability.
available in the newspaper indus-
try.
Ohio
annual dinner-dance Feb.
The new facility will also allow
Production crews accustomed
icket info at 464-0191.
the newspaper to push back dead-
ODO
TOW
(Duggan/Simon)
April 28, 1992
Draft Three
Broadcast
PRESIDENTIAL REMARKS:
OHIO BROADCASTERS ASSN.
COLUMBUS, OHIO
THURSDAY, APRIL 30, 1992
[time]
[Acknowledgments]
Let me begin with a few words about the great man who gave
his name to this city. Christopher Columbus dared to explore far
beyond the horizons of his continent -- and he discovered a new
world. None of us would be here had it not been for his vision.
In much the same manner, we wouldn't be holding a convention
of broadcasters it not been for other daring individuals --
scientific prodigies like DeForest and Marconi, business geniuses
like Sarnoff and Paley.
There's a lesson here we must not lose on our young people
today. It's important to remember, against the background of
centuries of human history, just how new is this thing called
broadcasting Around the time my father was born here in the
city of Columbus, Marconi was in Europe bringing his dreams to
4
their first fruition. It was just eight years before I was born
that the first radio station went on the air in the United
States. And when I was growing up, the notion of pictures moving
over the airwaves was only a wild and distant dream. I see many
in the audience now nodding that you've lived the same experience
-- and I wouldn't exactly say any of us are Methuselahs.
Yes, telecommunications is still in its infancy. And it is
taking its first baby steps hand in hand with another thing
2
that's bright and new in human history: the worldwide spread of
freedom and democracy. In many lands of Eastern Europe, of Asia,
of Africa and South America, people have thrown off the old ways
of dictatorship and command economies. They are enjoying true
self-government and economic freedom for the very first time.
When men like Washington and Madison gave us our system of
freedom and self-government, they put America in the vanguard of
historic change. It would be tragic if now -- as most of the
world embraces the new order of freedom -- if now America should
lose its sense of leadership and lag behind.
Leaders don't lead sheltered lives -- they take risks. That
is the essence of the reforms we need to carry our ideals and our
leadership into the new century. We must work for more open
trade -- and to fight protectionism at home and abroad. We must
pull ourselves out of the rut of excessive bureaucracy -- and
renew the spirit and practice of limited government.
Powerful popular movements are underway to change this
country for the better. In community after community, we see
parents standing up to the bureaucratic establishment --
asserting their rights in their children's education. A citizens
movement is fighting to limit the terms of congressmen and make
them more accountable. I support both these movements, and I'm
working hard also for another important reform: to stop the
epidemic of nuisance lawsuits. Our climate of hair-trigger
litigation makes a mockery of justice. We need to spend more
time helping one another and less time suing each other. 11
3
Increasingly, the people are showing their anger and
impatience with the heavy hidden taxes of government regulation.
For far too long, Congress has been levying these hidden taxes.
For far too long, Congress has imposed arbitrary mandates on the
the American people and made unelected bureaucracies the
regulatory equivalent of prosecutor, judge and jury. For far too
long, Congress and the bureaucracies it creates have evaluated
their own actions on the basis of intentions -- while sternly
judging the people they regulate on the basis of results.
Consider just a few examples of the burden of regulation:
Here in Columbus, the city government has projected that
over the next decade its cost of compliance with federal
environmental regulations alone would be one billion dollars.
Now, this is for a community whose entire city budget last year
was $591 million.
A small business owner from Bedford, New York, wrote to me
recently. He runs an ambulance service, and he bid for a
contract to provide service to a local Veterans Administration
hospital. He estimates that wage-rate rules mandated by Congress
inflate the cost of an ambulance call from less than $200 to
almost $7,000.
In Juneau, Alaska, a local charity, the St. Vincent de Paul
Society, wanted to build an addition to its shelter for the
homeless. The shelter is surrounded by concrete, on a city block
that includes two car dealerships, a plumbing store and a storage
4
business. But the building project was delayed for a whole year
because bureaucrats erroneously declared the site a "wetland." "
[other real-life examples, preferably including some from
Ohio]
Yesterday in Washington, I took some new actions to break
the stranglehold of government bureaucracy on some of our basic
freedoms. I've extended the moratorium on regulations that I had
instituted in my State of the Union Address.
Just since the moratorium began three months ago, we've
already yielded big benefits for the American people. We
estimate that our reforms already in place will save consumers
about $20 billion a year -- and that's just a down payment on
savings to come. [examples, preferably including something
connected with Ohio]
During the first 90 days of our accelerated reform efforts,
every federal agency I asked responded with action to ease the
burden of unnecessary regulation. And let me take this occasion
to salute the Federal Communications Commission for its action to
relax needless restrictions on ownership of radio stations.
That's a very welcome reform. Al Sikes, the FCC chairman,
believes in free markets and innovation -- and it's clear to me
that is the right direction.
Looking forward, one can't help but see that new
telecommunications technologies will revolutionize science,
education, and the way we do business. They'll be an important
boon to families: The day is coming when mothers and fathers
5
will be able to spend more time at home with their children even
as they make ever more productive contributions to our economy.
In harmony with with regulatory reform is the movement to
sell off government-run facilities that would serve the public
far more fairly and efficiently if operated by competitive
enterprises. Next week I'll present a major initiative to help
state and local governments turn over some key services to the
free market where they belong. We want to help more people enjoy
cheaper and better waste-water treatment service by letting
businesses with real market incentives do the job.
Privatizing state enterprises is one of the great hopes for
economic growth and rebirth in such places as Mexico and Russia.
Surely it would be a sad mistake if we missed our opportunities
to spur efficiency and innovation in the same manner right here
in our own country.
of one thing, however, I am certain: The status quo of
overgrown government will not yield without a fight. The key
force protecting that status quo is aptly described as an iron
triangle -- made up of special interests, their allies in the
bureaucracy, and their friends in Congress. But this year I feel
the time is ripe as never before for a popular show of force to
break the iron triangle. And here's one sign of my resolve to
break with business-as-usual that even an entrenched Congressman
ought to be able to understand: If Congress sends me any more
legislation mandating excessive regulation -- I'll send it back
with my veto as soon as it hits my desk. 11
6
Let me highlight another issue where the divide between
popular reformers and protectors of the status quo could not be
deeper. I've asked Congress repeatedly to reform the campaign
financing system -- I want the total elimination of the special
interest PACs. But the entrenched leadership in Congress is
proposing instead a bill that would require broadcast stations to
carry [taxpayer-subsidized] advertising for candidates who
receive federal matching funds. The upshot would be to further
protect incumbents. And I think you'll agree -- the last thing
this country needs is more public expenditure to perpetuate the
tenure of incumbents in Congress. So let me repeat: I want real
reform. If Congress sends me another "incumbent protection bill"
-- I'll veto it.
This is springtime -- and a young man's thoughts turn -- and
his radio dial turns -- to baseball. So I'd like to leave you
with a favorite story about the legendary Yogi Berra. In Yogi's
hometown of St. Louis, the local people organized a celebration
in his honor at the old Sportsman's Park. Yogi quavered with
emotion as he stepped up to speak. "First," he said, "from the
bottom of my heart, let me thank all the people who have made
this day necessary." 111.
The point of the story is this: The freedom-loving people
in this country -- people of ingenuity and enterprise, people in
leading-edge industries like your own -- are not merely making
renewal of limited government possible. 11 They're making it
necessary. 11 They're making it inevitable. 11 Technological
7
advance is accelerating so rapidly that the old guard in Congress
and the bureaucracy can hope only in vain to keep up.
We've reached a turning point. 11 We're on the verge of
watershed reforms to make government stop stifling people who
want to use their freedoms to create, to produce, to serve. 11
The day is coming when enterprisers and innovators like
yourselves will lead us to new horizons. The day is coming when
dreams not yet imagined will come true. The day is coming -- and
we will not be stopped.
Thank you, and may God bless the United States of America.
#
#
#
The Book of Firsts
DENNIS SANDERS
be broadcast over the ether as part of the regular De Forest pro-
grams.
THE FIRST SPEECH BROADCAST ON RADIO
Was given by Lee De Forest's mother-in-law, the noted women's
rights advocate Harriet Stanton Black, who spoke on women's suf-
frage in 1909.
THE FIRST DAILY RADIO STATION
The Charles Herrold School of Radio Broadcasts in San Jose, Cali-
fornia, which began on a once-a-week broadcast schedule in January,
1909, became the world's first daily station in 1910, and now qualifies
as the world's oldest continuously operating radio station. It is now
station KCBS in San Francisco.
THE FIRST COMMERCIAL RADIO RECEIVERS
Receivers were sold in a shop in the Metropolitan Life Insurance
Building on Madison Square in New York by Lee De Forest in 1910.
The De Forest sets, which were sold by the Radio Telephone Com-
pany, were kits which had to be assembled by the purchaser. Like
all early radios, they had an earphone rather than a speaker to
amplify the sound.
THE FIRST "MODERN" RADIO STATION
The golden age of radio, the three decades from 1920 to 1950, began
in earnest on November 2, 1920, when station KDKA in Pittsburgh
began broadcasting. KDKA was the first station in the world to be
organized and licensed as a fully commercial radio station broadcast-
ing regularly to the public. (The earlier stations, including the De
Forest and Herrold stations, were pretty much experimental, one-
man operations broadcasting to a small group of pioneer "ham"
operators.) With KDKA, true public broadcasting was born, and
manufacturers began widespread sale of radio sets to the public.
292
AG5
.525
WH
THE
FIRST
OF
EVERYTHING
A Compendium of
Important, Eventful, and Just-Plain-Fun Facts
About All Kinds of Firsts
DENNIS SANDERS
Research coordinated by
LEONARD LOVALLO
DELACORTE PRESS/NEW YORK
P 01
Jeannie BUNTON
DO
0
Ohio Association
A
of Broadcasters
88 East Broad Street, Suite 1780
Columbus, Ohio 43215
614/228-4052
B
FAX 228-8133
THE OHIO ASSOCIATION OF BROADCASTERS IS CELEBRATING ITS 55TH YEAR!
ORGANIZED IN 1937, THE OHIO ASSOCIATION OF BROADCASTERS IS ONE OF THE
LARGEST STATE ASSOCIATIONS IN THE COUNTRY SERVING MORE MAJOR MARKETS
THAN ANY OTHER STATE IN THE COUNTRY.
OHIO IS .HE FOR SEVEN LARGE METROPOLITAN MARKETS, OVER THREE DOZEN
GROUP OPERATIONS, 100+ SMALLER MARKETS, PLUS OVER TWO DOZEN TELEVISION
MARKETS.
THE OAB HAS A MEMBERSHIP OF ALL OHIO TELEVISION STATIONS, 90% OF ALL
OHIO RADIO STATIONS, PLUS OVER FIFTY ASSOCIATE MEMBERS, ALL OF WHOM
HAVE SOME INTEREST IN BROADCASTING.
THE OHIO ASSOCIATION OF BROADCASTERS IS THE ONLY STATE ASSOCIATION IN
THE COUNTRY TO HOST TWO SITTING PRESIDENTS: PRESIDENT REAGAN IN 1984
AND PRESIDENT BUSH in 1992.
PRE-ADVANCE/WALK-THRU QUESTIONNAIRE
EVENT: Ohio Association of BRoadcasters
DATE: April 30
TIME: 3:30 approximate speaking time 3:15
LOCATION:
(GIVE DETAILS)
Hyatt on Capitol Square
GOVERNORS Ballroom
EXPECTED (NUMBER AND AUDIENCE: COMPOSITION) 200-250 people
Members of OAB
PRESS COVERAGE: Open
DIAS PARTICIPANTS:
President of OAB Gary Robinson
Perhaps a couple other officers
No head table
EXPECTED PARTICIPATION BY MEMBERS OF
CABINET/CONGRESSIONAL/ADMINISTRATION:
I
POTUS INTRODUCTION: Gary Robinson, President of OAB
PERTINENT
SPEECH TOPICS: No suggested issues by OAB- - concerns
are about economy as it effects the industry
REASON FOR EVENT:
I
PLEASE ATTACH PRE-ADVANCE/WALK-THRU CALL SHEET
COLUMBUS, OH
City/State:
Ohio Assn. of Broadc.
Event:
Date:
4/30/92 (Event Date)
4/20/92 (Pre-Advance)
OFFICE OF PRESIDENTIAL ADVANCE
CONTACT SHEET
Name
Office
Phone Number
Presidential Advance Office
202/456-7565
Presidential Advance Fax Number
202/456-2820
JOHN HERRICK
Office of Presidential Advance 202/456-7565
Peggy Hazelrigg
Office of Presidential Advance 202/456-7565
Craig Ray
Lead Advance, Office of Pres. Advance 614/463-1234
Michele Nix
Office
202/456-7750
contact
A
Key
Bale BRing
oho Reoadcagus
6M/228/452
LYNDA Cimineilo
Healt or Capitol Square
614-228-1234
ANDY FOSTER
WH POLITICAL AFFAIRS
202.4566510
PETER GAILLARD
LEAD PRESS ADVANCE
202/456-7565
Russ CANCILLA
MILITARY ADE
(202) 395-1747
DALE ELLENBARGER
WHITE HOUSE Comm AGENCY
(614) 224-5400
"
"
"
"
BOB STEELE
202-757-2440
DICK RATHMELL us SECRET SERVICE 202-395-4112
200 people
ON CAPTTAL SQUARE
COLUMBUS, OHIO
payes
190 SEVANG FEET
THE WHITE HOUSE
WASHINGTON
April 22, 1992
MEMORANDUM FOR DAVID DEMAREST
SPEECHWRITERS
RESEARCHERS
FROM:
MICHELE NIX
SUBJECT:
PREADVANCE TRIP
Here's the poopski on the events scheduled for the Columbus trip
and Miami/Charlotte:
Bluffsview Elementary School. To commemorate Arnold
Schwarzenegger's 50th stop on a 50-state tour, POTUS is
going to stop off at Bluffsview Elementary School at
approximately 2:00 p.m. (times are not finalized). He will
go into a 10-minute briefing with leaders on the issue of
physical fitness, then proceed to a room where 24 kids (5th
graders probably) will be divided into teams and set up in
stations where they' be doing exercises to music. The
stations are: curl ups, shuttle run, push ups, jump rope,
stretching, juggling scarves. When the music stops, they
change stations. POTUS (having already changed into a warm-
up suit after the briefing) will interact with the kids
along with Arnold. Then POTUS goes into a gymnasium and
delivers brief remarks to approximately 500-600 people
(kids, parents, teachers, some community leaders).
Principal Donna Kelly will intro the Governor; the Gov. will
intro POTUS. At the conclusion of the remarks, the kids
will all stand and sing "God Bless the USA" to POTUS. After
POTUS leaves, Arnold might go down into the audience and
play "Arnold Says" with the kids.
Bluffsview only opened this past September. It's brand
spanking new. It's also situated in the Worthington School
District in Franklin County. (The area seemed quite nice -
- a little too nice, somewhat uppercrust.) I talked to the
assistant to the Superintendent, John Butterfield, and asked
him for some info about the area, the school, etc.
(Researcher, his name and number are on the contact sheet.)
Some tidbits to note: The district adopted America 2000
about 2 months ago -- so the enthusiasm is still high.
School colors: blue and white. The kids will probably make
banners for the backdrop where POTUS speaks; they might say
something like "Bluffsview Bears are physically fit."
(Researcher see me for more color details.)
Ohio Association of Broadcasters. This event will be held
at the Hyatt on Capitol Square in the Governors Ballroom.
The expected audience is 200-250 people, all members of OAB.
The attendees will eat lunch around 1:30 or 2:00 p.m. and
then leave for an hour's intermission. They'll come back at
3:00 p.m.; POTUS will be introduced at 3:15 p.m. I asked
the Executive Vice President, Dale Bring, to fax us certain
info -- which I hear he did yesterday. He's probably the
best contact for this event. OAB President Gary Robinson
will intro POTUS. (Robinson is General Manager of an NBC
affiliate in Cincinnati.)
Some tidbits: Columbus is headquarters to several
insurance companies and also to Borden. Borden is just
several blocks down the street from the Hyatt. POTUS has
addressed this group twice before -- once as Vice President.
A beautiful church is across the street. This is the OAB's
annual meeting -- in which they will be discussing the
economy as it impacts their industry.
Bush-Quayle Fundraising Dinner in Columbus. This event is
being held at the Ohio State Fairgrounds. It's pretty
standard. POTUS is announced, eats dinner, makes remarks,
exits. Governor Voinovich will intro POTUS. POTUS will be
speaking at the Lausche [LOW-she] Building -- named after a
former Ohio governor (Democrat). Approximately 600 people
are expected at $1,000 a plate. They are community leaders,
business leaders, and some major donors. BQ-Ohio wants the
Pres to attend a reception before the dinner for about 100
couples -- all Asian Indian Americans. Evidently this group
has raised some major bucks for other candidates in the past
-- so they want POTUS to do some schmoozing with them.
POTUS will also go over to a small reception for major
donors. There will also be a possible 100-click photo op
for VIPS before the receptions.
The proposed site for the photo op is in the adjacent
building -- the FFA Center. This is headquarters to Ohio
FFA members -- pretty obvious from the mannequins in FFA
uniforms, the pictures from 20 years ago of FFA members
who've gone on to greatness, etc. Some of it may be left
exposed -- rather than piped and draped. The Pickerington
High School Band will play "Hail to the Chief" -- and then
leave. There may not be a head table (check with Craid Ray
to see what's been decided).
Florida International University. This will be a great
event -- bar any protestors. The Miami Beach Convention
Center is the site -- perfectly Miamiesque in pale blues and
pinks and decorated in leftover furniture from "Miami Vice."
POTUS will arrive for a quick briefing (unrelated to event).
He'll then move to a reception with about 100 people
(business and community leaders) and then into the main
arena (being announced at around 2:00 p.m.) POTUS will
receive an honorary doctorate in Public Service and then
deliver his remarks to about 8700 people (graduates,
families, faculty). President Mitch Maidique will intro
POTUS.
(Jeannie -- I've already given you most of the details,
so I won't elaborate again here.) One item to note: The
students are outraged by the Florida budget passed by the
legislature -- in which education funding has been cut. The
governor vetoed it and sent it back. A lot of the kids will
be wearing badges in the shape of dollar signs that say
"Money for Education." The school administrators are very
proud of their success -- and rightfully so. They've
achieved a lot in 20 years. Re themes/issues: When I asked
one administrator what's on the university's mind, he said,
"FIU is the gateway to the South and the gateway to South
America. We realize they're a lot of opportunities in trade
for this country as a whole and for our students graduating
in the coming years. That's something the President could
touch on."
Bush-Quayle Fundraising Dinner in Charlotte, NC. This is my
event so I won't bore myself, but for those interested: The
site we looked at for this event did not work out -- it was
way too small. Also, there was a huge plantation house and
signs that boasted "Plantation Pavilion," "Plantation
Picnic Area, " etc. I could just see a photog snapping a
picture of POTUS standing in front of the Plantation House
surrounded by all these rich people (nice imagery -- not).
Advance is trying to find a hotel ballroom for the event.
POTUS arrives for a photo op, a reception with major donors,
and then is announced at 6:30 p.m.; after dinner POTUS is
intro'd by Governor Martin. Strom Thurmond will probably
speak before Martin. They're trying to get Billy Graham
there to do the invocation -- but no word yet. POTUS will
deliver his remarks (7:10 p.m.) to about 500 people.
B-Q has a videotape by Jesse Helms that they want to
play during the program. I don't think we're going to do
that. (Wheeeew!)
One issue that B-Qites mentioned: they want to hear GB
say what he has planned for the next four years. (I told
them it was a secret. Kidding.)
3
OHIO ASSOC. BROADCASTERS: 3:15pm; HYATT ON CAPITAL SQ;
200-250 PEOPLE; GOV'S BALLROOM; LUNCH; NO EAT;
RELEASED, 3 PM INTROS, DALE BRING - EXEC VP OF ASSIL
614-228-4052; POTUS INTRO GARY ROBINSON -Ass. PRES;
BORDEN DAIRY PRODS CORP HQ IN coumens $ NEAR
WHERE SPEAKING, COLUMBU SURPASSED CLEVELAND IN
CENSUS, ANNUAL MTO., POIUS SPOKE TWICE 2 THEM,
ONLEAS VICE POTUS: NO HEADTABLE; A TEW OFFICERS
ON STAGE, WORKING ON BANNER; MULTARY BAND;
JOB PLACEMENT OFFICE AT Flu - CAREER CENTER)
FRI/CHARLONE/WHITE HOUSE [5:20]
PUBLIC AFFAIRS PROGRAM FOR OHIO
BROADCASTERS
Conduct an offensive to communicate the
strengths, benefits. and public services of broad-
Ohio Association
casting to the general public.
EMERGENCY PREPAREONESS COORDINATION
A
of Broadcasters
88 East Broad Street, Suite 1780
FOR OHIOANS
Columbus, Ohio 43215
Coordination and initiation of actions designed to
02
help Ohioans better cope with weather, energy,
B
614/228-4052
and other emergencies through the emergency
broadcast system
BROADCASTERS' PERSONNEL PLACEMENT
EXCHANGE
AN INVITATION
Operation of an active listing of "availables and
availabilities" for stations and broadcasters'
GUARANTEEING BROADCASTERS
everchanging employment needs
A STRONG VOICE
COST-EFFICIENT GROUP INSURANCE PROGRAMS
FOR YOUR EMPLOYEES
ACCEPTING IT
Provision for station management and
CONTINUES OHIO BROADCASTERS
employees of excellent and inexpensive group
health, life and disability insurance programs-
COMMITMENT TO EXCELLENCE
with the economies and benefits of group
AND THESE BENEFITS
coverage.
FOR YOU
-congressional and state legislative watchdog
-state of the art conventions, workshop, seminars
-group insurance savings and benefits
-personne! placement
-grass-roots programs
strength through organization
-strong advocacy and defense
:
-executive education
:
-professional growth and recognition
oah representing and serving ohio radio
-industry communications hub
and
television since 1937
an organization that works for you..
oab representing and serving ohio
radio and television since 1937
WE INVITE YOU TO JOIN EFFORTS TO HELP US
AS AN INDUSTRY HELP OURSELVES!
an organization that works for you..
ACTION AREAS OF THE
Scheduled in easily-accessible, informal formats,
OHIO ASSOCIATION OF
centrally located to minimize travel expense
BROADCASTERS
SEMI-ANNUAL CONVENTIONS AIMED AT CON-
CRETE OPERATING NEEDS
ADVOCACY AND REPRESENTATION OF OHIO
BROADCAST INTERESTS IN GOVERNMENT
Planning by Convention Committees representing
April 30, 1992
AREAS
all markets and media for continuity and program
development
Representation and communication of broadcas-
Presentations and participation of concrete
ter positions on major issues before Congress,
FCC, Statehouse. state agencies, and other
benefits targeted to operation and management
of broadcasting
government bodies
Organization of 0AB liaisons forstate legislators
FULL-TIME STAFF WORKING EXCLUSIVELY FOR
and Members of Congress
OAB MEMBERS
Distribution of bulletins stating 0AB view, actions
The 0AB serves as a year-round Columbus
and objectives to government targets
department of your station, covering legislative
Continuation of "all-member" grass-roots con-
and administrative issues of importance to your
tact with government officials
operations and profits -an activity too costly for
you to bear alone.
INFORMATION SERVICES ESSENTIAL TO STA-
THE WHITE HOUSE
(Columbus, Ohio)
TION OPERATION & MANAGEMENT
GENERAL COUNSEL IN COLUMBUS AND
Provision of crucial services such as:
WASHINGTON
Office of the Press
Bulletins summarizing current happenings and
Retention of prestigious law firm Vorys, Sater,
coming events, as well as reporting on industry
Seymour & Pease, General Counsel, with offices
developments, government actions and national
in both Columbus and Washington DC to provide
and state broadcasting news
legal talent and services
Government Action Aleris immediately notifying
broadcasters of government developments, and
ACTION AS A COMMUNICATIONS "HUB" FOR THE
OHIO INDUSTRY
recommending actions and positions
Audience Research Services helping sell, position
0AB facilitates communication between broad-
and develop your station
casters about industry developments, approaches
to common problems, more unified reactions and
Statehouse Watch keeping tabs on a state govern-
initiatives to keep ahead of change, new com-
ment aimed at increasing costly regulation and
petition and critics.
For Immediate Release
taxation
General Information Services continually available
ADVOCACY OF BROADCASTING WITH ORGANIZA-
on a call-in as well as mail-out basis - (over 100
TIONS ESSENTIAL TO RADIO-TV INDUSTRIES
member service calls per week answered by 0AB
Organization of work with retailers, bankers, phone
staff and counsel)
companies, sports organizations, universities,
new and traditional competitors and other groups
EXECUTIVE EDUCATION PROGRAMS AND PRAC-
on general problems and programs of benefit to
TICAL WORKSHOPS RELATED TO DAILY STATION
members
FUNCTIONS, AND NEW COMPETITION
Production of special programs targeted to sales,
AFFIRMATIVE ACTION PROGRAM
management techniques, personnel problems,
nitiatives to encourage affirmative action within
political broadcasting. news programming, edu-
broadcasting industries and promotion of poli-
cation, engineering and other relevant topics.
cies encouraging affirmative action.
- 2 -
other that we will not tolerate racism and bigotry and anti-Semitism
and hate of any kind anywhere, any time. Not over the dinner table;
not in the board room; not in the playground -- nowhere.
We must condemn violence. I make no apology for the
rule of law or the requirement to live by it. And, yes, in some
places in America there is, regrettably, a cycle of poverty and
despair. But if the system perpetuates this cycle, then we've got to
change the system. We simply cannot condone violence as a way of
changing the system.
So we ought to change. we ought to try hard. Change
the status quo. And we've got to do it peacefully and we've got to
do it thoughtfully. This -- I am very hopeful, that calm can be
restored to this very important part of our country and that goodwill
will prevail over the hatred that we've seen in the streets in the
last few hours.
I am now switching off to what I came here to talk to
you all about. Let me just first say a word about this city and
about the great man who gave his name to this city. Columbus dared
to explore far beyond the horizons of his continent, and he
discovered a New world. You talk about the vision thing, well, he
had it.
Speaking of vision, we wouldn't be attending the
Broadcasters Convention had it not been for the daring of scientific
prodigies like DeForest and Marconi. We should keep in mind just how
new this thing called broadcasting is. The same year that my dad was
born right here in Columbus, Ohio, just a few blocks away on East
Broad Street, Marconi invented radio. It either makes me very old or
makes radio very young; I can't figure out which that is.
(Laughter.)
But I'm sure there are many here who can remember when
the first TV broadcast went on the air. I can remember the first TV
set I had -- a great, big square looking box with a little tiny
yellow-colored window. It was made by Hoffman. I don't think it
proved to be too successful because I don't think they're making TV
sets anymore. But it wasn't that long ago.
Telecommunications is still in its infancy. I think
that it's taking big steps now. And as you look over the horizon at
the future of this country in technology the steps are going to be
enormous. They're something bright and new in human history.
In addition to all this new technology, I think we can
look at a whole other area and talk about the worldwide spread of
freedom and democracy. Around the globe, nations are joining a
movement in which the United States is the great pioneer. We are --
never forget it -- the unsurpassed leader. And for those who will
have you believe that this country is in a state of decline, travel
abroad and see the respect with which this country is held.
We've got to protect our freedoms. We've got to trust
people with their freedoms. These form the core of our crusade to
make this country stronger. A free economy will be a strong economy,
and it will create more good jobs. We'll keep our healthy society --
keep society healthy if we keep our family first -- put family first.
And by keeping our defenses strong, we're going to keep the peace.
I'm working hard to open world markets. And open trade
will create more and better jobs for this country. It offers our
consumers lower prices and more choices. And expanding trade is one
of five programs for this country's future that I view as really top
priorities.
We're working as well to revolutionize -- this is the
second one -- to revolutionize -- literally to reinvent our schools.
MORE
- 3 -
Parents are leading the way. In community after community, they are
standing up to the bureaucratic establishment; they're asserting
their rights in their children's education. And I salute Governor
Voinovich, whose wife is with us here today, for the lead that Ohio
is taking in achieving the goals of America 2000, our literally
revolutionary education program.
We're working for fundamental reform of government,
including a balanced budget amendment -- now it has strong support on
both sides of the aisle. Clearly, it has to be phased in. But
there's a change in the country; people are saying we've got to do
better. I support strongly term limits to make Congress much more
accountable. I think the time has come for that. And I also
believe, and have submitted suggestions to the Congress for this
rather revolutionary idea -- that Congress cught to live by the laws
that it passes and laws that affect others. It is no longer right to
be separate. (Applause.)
The next category is we are working to help the
innovations and efficiencies of free market make quality health care
available to all. I do not want to see us go to what they call a
nationalized system or what some refer to as socialized medicine. We
want to retain the quality of our health care, but we've got to give
access to all, make insurance accessible to all. so we need to do
that.
And then the last point I want to make is we are
fighting the explosion of nuisance lawsuits. Let's spend more time
helping each other and less time suing each other. And that means we
need to put some limits on these outrageous liability claims.
(Applause.)
I might add that we are fighting hard to get the burdens
of unreasonable government regulation off the backs of the people.
And regulation really imposes a hidden tax on every man, woman and
child in this country. In the State of the Union address some 92
days ago, I lit a fire under our own administration's efforts for
fundamental reform of government regulation. And this week we
completed that 90-day moratorium that I ordered on new regulations.
In just those 90 days we have completed or set in motion reforms that
will save America $15 billion to $20 billion a year. And yesterday I
ordered a 120-day extension on that moratorium, and I'm expecting
many more achievements for freedom and for common sense.
Fundamental reform of regulation cannot be achieved
overnight, and it's going to take a lot of tough, imaginative,
patient effort. But I am totally committed to reforming regulation
because the cost of inaction would be much more than we could bear.
Think of some of the burdens and the contradictions that we already
face.
Here in Columbus the city government has projected that
over the next decade its cost of compliance with federal
environmental regulations alone will be $1.6 billion. And that's
$856 per household per year. NOW, this is for a community whose
entire city budget last year was $591 million. The share of the
city's budget to meet these regulations stands to increase from 10
percent to 23 percent. And right now, Columbus is one of the most
attractive places in the country for people to work and live. But I
can't say things will stay that way if the cost of meeting government
mandates keeps going right out through the roof.
In Juneau, Alaska, a local charity, the St. Vincent de
Paul Society, wanted to build an addition to its shelter for the
homeless, also requiring more parking space. Unfortunately, the
building project was delayed for a whole year because bureaucrats
declared the site a wetland. Now, get this -- the shelter is in the
middle of town, surrounded by concrete -- dry concrete, I think -- on
a city block that includes two car dealerships, a plumbing store and
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- 4 -
a storage business. There is something wrong with this picture. And
obviously somebody in this episode was all wet, but it wasn't the
real estate for the homeless shelter. I cite this as just the kind
of example that we must fight against at the federal level; that the
local level must fight against, too.
And back here in Ohio, an unreasonable federal
regulation almost forced the closing of this health plan in Dayton --
we call the Dayton Area Health Plan. George Voinovich called this to
my attention -- an innovative, managed care program designed to offer
high quality care to some 43,000 Medicaid recipients in Dayton.
Governor Voinovich and the Lieutenant Governor Mike Dewine led the
effort -- who I did not introduce but who is with us here today --
led the effort to change this inequity. And just this week I signed
legislation granting an exemption for this Ohio reform initiative.
I have confidence in the new ideas that Ohioans are
developing on their own, and without the mandates from the know-it-
alls in these subcommittees back in Washington, D.C. or in our own
bureaucracy. We don't do much for Americans' health when we put
HMOS, like the one in Dayton, on the critical list.
It's stories like these that remind us what a visionary
Alexis de Tocqueville was. A century and a half ago -- a century and
a half ago he warned that if Americans were not careful, government
would -- and here's the quote -- "cover the surface of society with a
network of small, complicated rules, minute and uniform, through
which the most original minds and the most energetic characters
cannot penetrate." This is de Tocqueville, coming over and taking a
look at our society back then. I don't know what would happen to him
if he took a look at it today.
We've heard the warning. We're fighting back. And our
reform efforts are breathing new life into America's ability to
compete, to innovate, and to create jobs. Every federal agency that
I asked to participate has responded with action to ease the burden
of unnecessary regulation. From biotechnology, to energy, to the
banking field and, yes, to broadcasting and telecommunications, we
are taking the shackles off of American enterprise.
Let me take this occasion to salute the FCC, Federal
Communications Commission, for its actions to relax needless
restrictions on ownership of radio stations. The FCC also has taken
action to allow competition among international satellite companies.
Now, this will help reduce prices that Americans now pay on more than
a billion telephone calls every year to other countries. These are
very welcome reforms. Al Sikes, who is our chairman, the FCC
Chairman, believes in free markets and he believes in innovation.
It's clear to me that that is the right direction.
Looking forward, one can't help but see that new
telecommunications technologies will revolutionize science, education
and the way we do business. They will be an important boon to
families. The day is coming when mothers and fathers will be able to
spend more time at home with their children even as they make ever-
more productive contributions to our economy. The predictions for
doing work at home in a productive way are absolutely outstanding,
amazing. And I think you're going to see a whole new area build up
for productivity.
In the same spirit as regulatory reform is privatization
-- facilities now run by government to be owned and operated by
competitive enterprises, and thus serve the public more fairly and
more efficiently.
Today before I came out here to Columbus, I signed an
executive order that will give state and local governments more
freedom to sell or lease their infrastructure to the private sector
if they choose to do so. We hear complaints that America's
MORE
- 5 -
infrastructure is crumbling and that states aren't putting enough
money into expanding or repairing it. And at the same time, many
private companies want to invest in these projects. So our executive
order will remove impediments to competitive enterprises, buying
infrastructure assets. That means bridges or roads or housing and
sewage treatment plants.
This initiative could generate billions of dollars in
new investment and millions of new jobs. American business has the
funds to invest in infrastructure and has the funds to expand it.
Through today's actions we will help more people enjoy
cheaper and better waste water treatment service by letting
businesses with real market incentives do the job. We'll help low-
income tenants buy their own housing. The dignity that comes with
homeownership is a wonderful thing for our country. we're promoting
competition that could dramatically reduce the cost of urban mass
transit. And the money that states will receive for selling these
facilities will be used to build even more new needed infrastructure
or to lower the states' debts or to cut your taxes.
Privatizing state enterprises is one of the great hopes
for economic growth and rebirth from Mexico City to Moscow. Take a
look at what's happened south of our border under the courageous
President of Mexico, Carlos Salinas. Look at the many formerly
government-owned entities that he has turned over to much more
efficient operation in the private sector. There is an example from
what Mexico is doing for us right here in the United States. Same
thing is true in Moscow.
As I sit down with the leaders from the new Commonwealth
of Independent States -- and I'll be meeting very soon with Kravchuk,
and shortly after that, with Boris Yeltsin -- we are encouraging them
to move to the very kinds of privatization that I'm talking about
here. I think you're going to find that they re doing it and it's
going to be highly successful, and it offers them great hopes for
recovery out of the economic morass that they're in right now.
So this idea presents many chances for positive change
-- change abroad and change right here in our own country. And there
are opportunities, frankly, that we simply cannot afford to overlook.
And of one thing I am certain: the status quo, the old thinkers are
not going to yield on this without a fight. The special interest
crowd will not like the agenda that I've outlined for you today.
They think that government ought to own more, not less. They think
that government ought to mandate more, not less.
When I meet with the governors -- and I've done that
quite a few times since I've been President -- all across party
lines, all across ideological lines of conservative and liberal comes
the cry from the governors, do not burden us with mandates coming out
of some old thinking subcommittee in the Capitol Hill of Washington,
DC. And we are determined to try to facilitate what the governors
want by giving them flexibility and saddling them with far fewer
mandates.
Washington hasn't changed much since you all have been
there. It is swarming with noisy lobbyists for the old interests who
want this highly centralized federal government and people who have
never met a regulation that they didn't really like. And this is
springtime, and a young man's thoughts turn, as does his radio dial,
to baseball.
And so I thought I'd leave you with a favorite story. I
don't know whether all these Yogi Berra stories are true or not
-- you know, pair 'em up in threes and things like that. (Laughter.)
In Yogi's hometown of St. Louis, the local people organized a
celebration in his honor at the old Sportman's Park. And Yogi
quavered with emotion as he stepped up to speak.
MORE
6 -
"First," he said, "from the bottom of my heart let me
thank all the people who have made this day necessary." (Laughter.)
I think the point of the story is this: The freedom-loving people of
this country -- the people of ingenuity and enterprise, the people in
leading-edge industries like your own -- are not merely making
renewal of limited government possible, they're making it necessary.
And they're making it inevitable. And technological advance is
accelerating so rapidly that the old guard can only hope in vain to
keep up. We'll make intrusive and gluttonous government a thing of
the past.
We've reached a turning point. And we're on the verge
of watershed reforms to make government stop stifling people who want
to use their freedoms, their own freedoms, to create and to produce
and to serve.
And the day is coming when enterprisers and innovators
like yourselves will lead us into these exciting new horizons. The
day is coming when dreams not yet imagined will come true. And I am
confident about the years ahead. I know we've had difficult times.
But I don't believe for one single minute that the United states of
America is in decline. The future is tremendously exciting. And if
we handle the technological change with the innovative manner I've
outlined here today, I believe we can usher in all kinds of new eras
of prosperity for the working men and women in this country.
Again, I'm confident of the years ahead. And the big
thing is to keep this nation a champion of ideas and of opportunity,
and with that first subject in mind, of justice. We can reform our
schools and our courts and our health system -- our very system of
government. And we can assure that when we reach the new century
America will still be the strongest, the bravest, and the freest
nation on the face of the Earth.
It's good to be back with you. And thank you all very,
very much. (Applause.)
END
3:35 P.M. EDT
(Duggan/Simon)
April 29, 1992
PRESIDENTIAL REMARKS: OHIO BROADCASTERS ASSOCIATION
COLUMBUS, OHIO
THURSDAY, APRIL 30, 1992
3:15 PM
[Acknowledgments] Let me begin with a few words about the
great man who gave his name to this city. Christopher Columbus
dared to explore far beyond the horizons of his continent -- and
he discovered a new world. None of us would be here had it not
been for his vision.
In the same manner, we wouldn't be attending a broadcasters
convention had it not been for the daring of scientific prodigies
like DeForest and Marconi, pioneer newsmen like Murrow, and
business geniuses like Sarnoff and Paley.
We should keep in mind just how new this thing called
broadcasting is. The same year my father was born here in
Columbus, just a few blocks away on East Broad Street, Marconi
invented radio. And I am sure there are many here who can
remember when the first TV broadcasts went on the air.
Yes, telecommunications is still in its infancy. And it is
taking its first baby steps hand in hand with another thing
that's bright and new in human history: the worldwide spread of
freedom and democracy. They are joining a movement in which the
United States is the great pioneer and the unsurpassed leader.
Protecting our freedoms -- trusting people with their
freedoms -- these form the core of our crusade to make this
country stronger. A free economy will be a strong economy,
creating more good jobs. We'll keep our society healthy by
2
putting the family first. And by keeping our defenses strong,
we'll keep the peace.
I'm working to open world markets. Open trade will create
more and better jobs for Americans. It offers our consumers
lower prices and more choices. Expanding trade is one of five
programs for this country's future that I view as top priorities.
We're working as well to revolutionize -- literally re-
invent -- our schools. Parents are leading the way. In
community after community, they are standing up to the
bureaucratic establishment -- asserting their rights in their
children's education. We're working for fundamental reform
of government -- including a balanced budget amendment and term
limits to make Congress more accountable. 11 We're working to
help the innovations and efficiencies of free markets make
quality health care available to all. 11 And we're fighting the
explosion of nuisance lawsuits. 11 Let's spend more time helping
one another and less time suing each other. 11
We're fighting hard to get the burdens of unreasonable
government regulation off the backs of the American people.
Regulation imposes a hidden tax on every man, woman and child in
this country.
In my State of the Union Address, I lit a fire under my
administration's efforts for fundamental reform of government
regulation. This week we completed the 90-day moratorium I
ordered on new regulations. In just those 90 days, we have
completed or set in motion reforms that will save Americans 15 to
3
20 billion dollars a year. Yesterday, I ordered a 120 day
extension of the moratorium -- and I am expecting many more
achievements for freedom and common sense.
Fundamental reform of regulation can't be achieved
overnight. It's going to take a lot of tough, imaginative,
patient effort. But I am totally committed to reforming
regulation, because the cost of inaction would be more than we
could bear. Think of some of the burdens and contradictions we
already face:
Here in Columbus, the city government has projected that
over the next decade, its cost of compliance with federal
environmental regulations alone will be $1.6 billion. That's
$856 per household per year. Now, this is for a community whose
entire city budget last year was $591 million. The share of the
city's budget to meet these regulations stands to increase from
10 percent to 23 percent. Right now, Columbus is one of the most
attractive places in the country for people to work and to live.
But I can't say things will stay that way if the cost of meeting
government mandates keeps going through the roof.
In Juneau, Alaska, a local charity, the St. Vincent de Paul
Society, wanted to build an addition to its shelter for the
homeless. The shelter is surrounded by concrete, on a city block
that includes two car dealerships, a plumbing store and a storage
business. But the building project was delayed for a whole year
because bureaucrats erroneously declared the site a "wetland."
4
Obviously somebody in this episode was all wet -- but it wasn't
the real estate for the homeless shelter.
And back here in Ohio, an unreasonable federal regulation
almost forced the closing of the Dayton Area Health Plan -- an
innovative managed care program designed to offer high quality
care to some 43,000 Medicaid recipients in Dayton. Governor
Voinovich led the effort to change this inequity -- and just this
week, I signed legislation granting an exemption for this Ohio
reform initiative. I have confidence in the innovative ideas
Ohioans are developing on their own -- without mandates from
know-it-alls in the Washington bureaucracy.
It's stories like these that remind us what a visionary
Alexis de Tocqueville was. A century and a half ago, he warned
that if Americans were not careful, government would "cover the
surface of society with a network of small, complicated rules,
minute and uniform, through which the most original minds and the
most energetic characters cannot penetrate."
Well, we've heard the warning. We're fighting back. Our
reform efforts are breathing new life into America's ability to
compete, to innovate, to create jobs. Every federal agency I
asked has responded with action to ease the burden of unnecessary
regulation. From biotechnology to energy to banking -- and, yes,
to broadcasting and telecommunications -- we are taking the
shackles off of American enterprise.
Let me take this occasion to salute the Federal
Communications Commission for its action to relax needless
5
restrictions on ownership of radio stations. The FCC also has
taken action allow competition among international satellite
companies. This will help reduce prices Americans now pay on
more than a billion telephone calls every year to other
countries. These are very welcome reforms. Al Sikes, the FCC
chairman, believes in free markets and innovation -- and it's
clear to me that is the right direction.
Looking forward, one can't help but see that new
telecommunications technologies will revolutionize science,
education, and the way we do business. They'll be an important
boon to families: The day is coming when mothers and fathers
will be able to spend more time at home with their children even
as they make ever more productive contributions to our economy.
In the same spirit as regulatory reform is privatization --
selling off government-run facilities that would serve the
public far more fairly and efficiently if operated by competitive
enterprises. Today, before I came here to Columbus, I signed an
Executive Order that will give states more freedom to sell their
infrastructure to the private sector if they choose to do SO. We
hear complaints that America's infrastructure is crumbling, and
that states aren't putting enough money into expanding or
repairing it. At the same time, private companies are chomping
at the bit to invest in these projects.
My Executive Order will enable competitive enterprises to
buy infrastructure assets -- including airports, rail facilities,
bridges and roads, housing and hospitals. This initiative could
6
generate billions of dollars in new investment and millions of
new jobs. American business has the funds to invest in
infrastructure and expand it. Through today's action, we will
help more people enjoy cheaper and better waste-water treatment
service by letting businesses with real market incentives do the
job. We will help air travelers get the bigger and better
airport facilities we'll need for the 21st century. And the
money that states will receive for selling these facilities will
be used to build even more new needed infrastructure, or to lower
the states' debts -- or to cut your taxes.
Privatizing state enterprises is one of the great hopes for
economic growth and rebirth from Mexico City to Moscow. And this
great idea presents many chances for positive change right here
in our own country -- opportunities we can't afford to overlook.
of one thing, however, I am certain: The status quo will
not yield without a fight. The special-interest crowd won't like
our agenda. They think government should own more, not less.
Washington is swarming with noisy lobbyists for the old interests
of know-it-all government -- people who've never met a regulation
they didn't like.
This is springtime, and a young man's thoughts turn -- and
his radio dial turns -- to baseball. So I'd like to leave you
with a favorite story about the legendary Yogi Berra. In Yogi's
hometown of St. Louis, the local people organized a celebration
in his honor at the old Sportsman's Park. Yogi quavered with
emotion as he stepped up to speak. "First," he said, "from the
7
bottom of my heart, let me thank all the people who have made
this day necessary." III
The point of the story is this: The freedom-loving people
in this country -- people of ingenuity and enterprise, people in
leading-edge industries like your own -- are not merely making
renewal of limited government possible. 11 They're making it
necessary. They're making it inevitable. 11 Technological
advance is accelerating so rapidly that the old guard can only
hope in vain to keep up. We'll make intrusive and gluttonous
government a thing of the past.
We've reached a turning point. 11 We're on the verge of
watershed reforms to make government stop stifling people who
want to use their freedoms to create, to produce, to serve. 11
The day is coming when enterprisers and innovators like
yourselves will lead us to new horizons. The day is coming when
dreams not yet imagined will come true.
I am confident about the years ahead: We will keep this
nation a champion of ideas and opportunity and justice. We can
reform our schools and our courts and our health system -- our
very system of government. We can assure that when we reach the
new century, America will still be the strongest, the bravest,
and the freest nation on the face of the Earth.
Thank you, and may God bless the United States of America.
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