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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Backup Files Subseries: Chron Files, 1989-1993 OA/ID Number: 13818 Folder ID Number: 13818-002 Folder Title: Televised Press Conference on Balanced Budget Amendment 6/4/92 [OA 7576] Stack: Row: Section: Shelf: Position: G 26 22 6 1 THE WHITE HOUSE Office of the Press Secretary For Immediate Release June 4, 1992 PRESS CONFERENCE BY THE PRESIDENT The East Room 8:01 P.M. EDT be glad to take questions. THE PRESIDENT: I have a brief statement and then I'll cuts billion in wasteful spending projects. Tonight I've just signed $8 Two months ago, I asked the Congress to cut almost for, but it is a start. Eight billion dollars sounds like a lot that Congress sent to me in response. It's not all that I asked the by money, a long and shot. it is. But the fact remains: it isn't good enough -- of not America. accumulated federal debt totaling $65,000 for every family of four in long-term economic health of our country. Over the years, we've The American people know budget deficits threaten the bragged off his debts. to his family that he'd finally borrowed enough money to pay pay our current consumption. It reminds me of the old fellow helps who for This debt does not create more wealth -- it merely its responsibility to address this problem. And in the face Our political system, as it is now, has failed to meet several-hundred billion dollar budget deficit, a piecemeal of a balance the federal budget. And we need it now. simply will not do the job. We need a constitutional amendment approach to since asked the Senate and the House to pass such an amendment. year I Three years ago, in my first address to the Congress, me, the have tried to get Congress to act responsibly and to I then, I have repeated the call. Like President Reagan Every before confrontation. We've tried quiet diplomacy with the congressional growth of federal spending. We've tried compromise. We've restrain tried leaders. And none of this has been enough. Tonight I am to convinced force than ever that a balanced budget amendment is the more only way Executive Branch -- to live within its means. the federal government -- both the Congress and the balanced budget amendment. It is impossible to underestimate on the a This month, both Houses of Congress will vote that importance of this one decision: it will affect every other decision the government makes from that moment on, and it will directly follow us. on the quality of life that we leave the generations bear who pleased to say that many serious-minded members, Republicans and two-thirds majority from both the Senate and the House. And I'm Victory will not come easily. The amendment requires a partisan fight, it goes far beyond election-year politics. It is not a Democrats alike, support this measure. They understand this is a fight for the economic security of the American people. budget the amendment a rather radical step. Well, I strongly doubt that I realize that some in Washington consider a balanced American people consider a balanced budget amendment as radical. MORE - 2 - It's common sense, pure and simple. Each month millions of American families sit down to balance their checkbooks. Forty-four states -- 44 states have their own constitutional balanced budget requirements. The federal government must now do the same. The moment is at hand. In the coming days, we will face an extraordinary choice. We can choose either to accept the status quo, piling debt upon debt -- or we can strike a bold new course, restoring fiscal sanity to the federal government. If we choose wrong, we choose wrongly, our grandchildren and their grandchildren are going to bear the burden. I refuse to believe that we will make them pay the price for Washington's irresponsibility. For their sake, I urge every congressman and every senator to join ne in supporting the swift approval of a balanced budget amendment. Now I will be glad to respond to questions. I think, Terry, I think you have the first. Q Mr. President, I'd like to ask you about Ross Perot. People claim that you're hiding and you're afraid to take him on directly. Will you commit yourself to debating Mr. Perot as well as Bill Clinton in the fall campaign? THE PRESIDENT: I'm sure there will be debates, and I will be ready to join the fray after the conventions. But as you know, I have not challenged directly either Perot or Clinton -- Mr. Perot or Governor Clinton. I have no intention of changing that before the convention. I am trying to get things done that will help this country. A balanced budget amendment is a good example of that. And if I get too caught up in the political wars at this time it will be. even more difficult to get things through the Congress that will help -- a crime bill, an education bill, balanced budget amendment -- things that we really need. And so I'm going to keep on this course that I've been. I've been faithful to it during the primary season and I will continue to be until I make a decision to change. Q I mean in the fall campaign. I'm not talking about immediately, right now, but will you commit yourself to debating the two men -- THE PRESIDENT: There will be debates. Q Mr. President, granting the legality, is it proper for a man -- for a candidate with vast personal wealth and no spending limits to use that to obtain the presidency? And since you've known Mr. Perot for so long, is he an insider, an outsider? Is he a man of principle, or does he go for the main -- THE PRESIDENT: I'd love to answer that question, and after the -- Q Well, why don't you? THE PRESIDENT: Because I've vowed to keep my sights set on these legislative goals and on leading this country. And if I get into characterizing one opponent or another, I diminish my effectiveness in doing that. We've got a good chance now -- and some of it's brought about by the primaries, I think -- to pass this balanced budget amendment, for example. I'm a little disappointed that our education reform bill is languishing up there. I'd like to see us get a good energy bill soon. But if I start concentrating on the politics I'm MORE - 3 - afraid I will waste an opportunity. I think we're in a real opportunity situation now. o Do you think he's trying to buy the presidency? THE PRESIDENT: Well, so far not. We'll wait and see. Q Mr. President, you've often said that you've not done so terrific a job of getting your message across. Tonight you've changed the venue. But I wanted to ask you if, indeed, what you've seen in the polls and the constant one-third or more of the electorate that's going other ways isn't a rejection of that message in and of itself? THE PRESIDENT: I don't think so because you ask in these deadly polls that I read all the time about -- relating to issues, and it's vague out there. We've got a good program. And tonight maybe this is a more effective way to say we want a balanced budget amendment. We've got a good program on the Hill to achieve a balanced budget amendment, or, after the balanced budget amendment is passed, to achieve a balanced budget. And so I think we've just got to keep hammering away on the issues because I believe the American people are with ne. If they understand our total reform of education, they'll support it. Most Americans want a tougher crime bill. I heard people out on the West Coast who don't vote for tougher crime legislation all advertising in those 90-second bites they paid for -- ads how tough they are on crime. Maybe we've got a better chance now to pass an administration crime bill. So I'm going to keep focusing on those issues. And hopefully, the American people will say he has a sound program for domestic affairs just as he does in foreign relations. 0 But if I could follow, sir, hasn't the pattern through the primaries been such that the American people have been constantly looking for an alternative? THE PRESIDENT: Yes -- Q You may have put Pat Buchanan behind, but now you've got Ross Perot. Is he the inheritor of that? THE PRESIDENT: No -- well, I don't think so. I'll tell you what, I think most people would concede that my problems stem from this sluggish, anemic economy. I think you can trace those problems to getting bigger with that. Now, I think the economy's improving. We still have some big problems there. For a person that's out of work, for him, that unemployment is 100 percent. For a woman that can't get a job that wants one, for her, unemployment is 100 percent. so we've got to keep pushing ahead. And I would make the appeal right now for our growth incentives to further stimulate an economy that is beginning to move and is beginning to move positively. But, no, I think my fortunes have been related to that. And I think, if I'll take the blame, some of which I'll take is the economy has been sick. I assume the American people are fair enough to give credit when there's recovery. Q Your spokesman today described Mr. Perot as a man who's entire history is to stomp into the group, demand to do things his way, and if he doesn't get it, to pick up his football and go home. The Vice President the other day questioned his judgment, MORE - 4 - saying he had been wrong on your most important decision of the presidency, the Persian Gulf war. Do you share their assessments? THE PRESIDENT: I'm glad that they are putting their focus on these problems, but I'm not going to do it myself. I have a difference clearly as far as the Persian Gulf war goes, no question. And I think the American people support the actions that I took. I believe it was correct. I believe we performed well. I believe we set back aggression. I believe there was a whole new pride in this country -- the international community supported it overwhelmingly. So as people point these things out, that's fair. And as his supporters point out what they think might be foibles in me, that's fair, too. But I'm going to stay on the path that I've outlined. Q Mr. President, the amendment you're talking about would require a balanced budget within two years. If you're reelected, will you submit a balanced Fiscal 1994 budget whether or not you're required to by constitutional amendment? THE PRESIDENT: It won't be -- of course, we have submitted a balanced, but it won't be in two years. And we have submitted budgets that get in it; we've got one right up there now that does that. And I think it's going to be five years. Q Mr. President, if the experience of your EPA chief in Rio today is any indication, there's quite a reception committee of harsh critics of this administration and of you, sir, waiting for you down there. Under the circumstances, if that's what the reception is going to be in Rio, why go? THE PRESIDENT: Well, because we've got a sound and sensible environmental record, and we have a strong role of international leadership. I wonder if the American taxpayer knows that we have spent something like $800 billion in the last 10 years on cleaning up things -- the atmosphere, environment in many, many ways? It is estimated that it will be $1.2 trillion spent by the United States taxpayers and businesses over the next 10 years. We have a superb record to take to that convention. I am not going to go down there and forget about people that need jobs in the United States of America. I'm going to take a strong record, the leading record on science and technology; the leading record on oceans; the leading record on forests; the leading records on protecting the elephant; the leading records on CFCs. We've got a good record. But because I will not sign a treaty that, in my view, throws too many Americans out of work, I refuse to accept that kind of criticism from what I consider some of the extremes in the environmental movement, internationally or domestically. So we've got a good record to take there, Brit. And I want to go down there -- we're passing out booklets and little CDs, you know, little discs to show everything. I was out at Goddard the other day. The science that we have that can help the Third World is mind-boggling; we want to share it with these people. But I want to keep this country growing and I want to see us have the cleanest, best record in the world. And besides that, we have a Clean Air Act that others ought to take a look at and say, you've done wonders in getting what you did through, President Bush. And so I'm going to go on the offense not defense. MORE - 5 - 0 Well, I'm just wondering, sir, clearly, many of those who are there are aware of the elements of your record and have come to the conclusions which they so vocally express anyway. How do you think this can be a plus for you down there? THE PRESIDENT: Well, hey, listen, I'm used to a little criticism. I want to go on the offense and say what we've done and what we're prepared to do. And I wouldn't go along with the extremes in many of these international negotiations. But I have some responsibility responsibility for a cleaner environment, and also responsibility to families in this country who want to work, some of whom can be thrown out of work if we go for too costly an answer to some of these problems. And I'm not going to forget the American family. And if they don't understand it in Rio, too bad. I'm not going to be driven though, Brit, by the extremes of these movements. They started protesting before they even know what our position was. But I'm going there and take this record and I'm convinced that it will be very productive. Q Mr. President, you say your problems in the primaries have been caused largely by the anemic economy. Yet the economy is improving and the voters seem to be walking away from you in droves, sir. Don't you take it personally, and what are you going to do about it? THE PRESIDENT: I don't take it personally. As a guy that never looks at polls, as you know, I would like to cite a poll figure for you -- (laughter) -- 70 percent of the people in the most recent poll I saw that was done for our campaign said that they thought the economy was getting worse -- and the economy is moving. There's still some problems. As I say, when a person's hurting for a job, that worries me. But Gross Domestic Product -- GNP -- is moving. Industrial production is up. Payroll employment is up. And another thing that's up and then soon will be picked up in these broad polls is that Michigan survey on business confidence. So things are turning around. And yet, at this juncture, the American people haven't felt it. When they do, I think you'll -- I expect to see some change. But, no, I don't take it personally. I honestly don't, Ellen. Q Aren't the American people -- THE PRESIDENT: I've been in tough times before. or Well, sir, aren't the American people right in holding you personally responsible for the problems of this country? THE PRESIDENT: Well, I think they hold me responsible to some degree, and I think they hold the United States Congress responsible. I would remind the people that Congress appropriates every dime and tells me how to spend every dime. It's the Congress that does that. But, sure, I'll accept my share of the responsibility for this long recession. And so will the Congress. But the question isn't blame, the question is what you do about it. And I've proposed tonight, let's move on the balanced budget amendment. Let's move on my growth initiatives that would stimulate investment, like cutting the capital gains, moving on the investment allowance that speeds up depreciation, first-time home credit -- credit for homebuyers. This is all good and valuable stuff that would speed this economy up. MORE - 6 - And so I don't think it's a question of blame. It's a question of staying in this nonpolitical mode for a while longer, challenging the Congress to help us help the American people. Q Well, sir, the Congress hasn't passed all these programs you talked about -- THE PRESIDENT: It's not too late. They ought to try now. Q So why don't you tell us what you really think about Ross Perot? THE PRESIDENT: (Laughter.) What's that have to do with it? Come on. o Sir, you say that you have a strong international leadership role. But the new world order that you are promoting is being challenged in Yugoslavia these days. It appears that the sanctions are not working against Serbia. When are you going to take the lead of an international coalition to force Milosevic out of Bosnia, the way you did with Saddam Hussein out of Kuwait? THE PRESIDENT: I think the sanctions - I'm not prepared to give up on the sanctions at all. They've only been in effect for a few days. And as you know, first on this question of Yugoslavia, out in front was the United Nations. You had -- Cyrus Vance as a representative of the United Nations, did a superb job trying to negotiate, ably supplemented, I might say, by Peter Carrington. They tried to work that problem; had our full support. The EC, which is right there in the neighborhood, tried to have an effective role. It now appears that a U.S. role, catalytic role, is important. And thus, we are moving forward -- Secretary Baker made a very strong statement on this recently; has worked closely with the leaders of Europe. And so we are united in this sanctions question. And let's see if it works. But I'm not prepared to say these sanctions will not work. Q Is the fact that the elections are approaching in the U.S. preventing a military action? THE PRESIDENT: I think prudence and caution prevents military actions. If I decide to change my mind on that, I will do it in an inclusive way. But at this juncture I want to stay with these sanctions. Wait a minute -- Gene, I'm sorry. I recognized him and did not follow through. Q Mr. President, your Budget Director yesterday laid out a number of ways of bringing the deficit under control, even without a balanced budget amendment. But all of them would require taking on tough pressure groups. You have not often seemed to use the bully pulpit of the presidency to do that, to take a direct head- on approach. Why not? THE PRESIDENT: We've got the program up there. There are some 30 pages of options. We are not -- you don't have to touch Social Security to do this, and I'm not going to do that. We have made growth assumptions in there that can be easily net -- four, four, 3.2, 3.2. Those are the percentages of growth -- can easily be met if we move with partial growth agenda that I've proposed. so I will keep repeating, as I did in the State of the Union message, as I did subsequently right here in this room, get the Congress to pass this growth agenda. MORE - 7 - But that's what's needed -- plus some direct controls of spending. And you can do it by controlling the growth of these spending programs -- leave out Social Security -- to the rate of inflation and population increase. And it's not a gimmick; it works. It's not rosy scenario. It works. That is my detailed proposal. I'd like to see some other detailed proposals, but that is a good one. It's sitting up there right now. And it won't be done if we don't control the growth of mandatory programs. That's where, what, two-thirds or close to three-fourths of the budget is. 0 But the limits on mandatory programs would involve pain and sacrifice. And yet, neither you, nor Mr. Perot, nor Mr. Clinton talks about that. Has presidential politics become so sound- people? bite driven that it's politically suicidal to level with the American THE PRESIDENT: I don't think it's suicidal. And I think our program up there that gives many suggestions as to how achieve this is good. And, yes, it's not easy. Medicare, Medicaid growth is going through the roof. And, yes, we're going to have to find ways to control it. But what we've done is detail the areas detailed program. that need to be controlled. And I think that is a sensible, sound, 0 Mr. President, a fair amount has been written about Ross Perot's role with the Reagan administration on the POW-MIA issue and it relates directly to you. If one news report is correct, he's going to testify on the subject soon. You said you won't him on this issue? characterize him, but can't you tell us what your dealings were with THE PRESIDENT: I will be prepared to elaborate on that later on. My dealings -- I was a member of the Reagan to do something about the prisoners. What happened beyond that -- I administration. For a while he was over being quite helpful, trying saw a detailed story today that I simply cannot comment on. We are -- Marlin Fitzwater, then the Press Secretary for President Reagan, is on the record at a public press conference commenting on the Perot role, so I would refer you to that. That was back in, I believe in '87. And I'd rather leave it right there. that's good. I hadn't heard that. But if he's going to explain this to the Congress, Q since he has indicated that he is going to endorse you at the Houston Mr. President, in the interest of party unity and Convention, would you like Pat Buchanan to have the prime-time speech that he wants to have at the Republican Convention in August? THE PRESIDENT: Susan, I'll be honest with you, I haven't focused on that at all. I welcome the support of all Republicans. And let's see how he handles this, and let the people handling the convention work it out. That is not on my agenda. Q With the benefit of hindsight, do you think his primary challenge was damaging to you, or helpful, or what? helpful. But he got into a long line of people criticizing me -- THE PRESIDENT: Well, I can't say it was particularly five on the Democratic side and one there. But maybe I'm a little stronger for it. Maybe I'm a little better -- be a little better candidate when it comes to the fall. I did not engage with Pat Buchanan. I don't plan to do that now. But I'll grope around to see if I can think of some reason it's helpful. (Laughter.) But I have no hard feelings about that at all. MORE - 8 - Q Mr. President, critics of yours on Capitol Hill have said your policies toward Saddam Hussein before the Gulf war strengthened him and made him more likely to make an attack against one of his neighbors. How do you respond to that? I've got a follow-up. THE PRESIDENT: I respond that that's not right. As I said at my last press conference, we tried -- not through strengthening his nuclear or biological or chemical weapons has been alleged; not by giving him part of Kuwait has been alleged. But we tried to work with him on grain credits and things of this nature to avoid aggressive action. And it failed. It failed. That approach, holding out a hand, trying to get him to renounce terrorism and join the family of nations didn't work. And the minute he moved aggressively, we moved aggressively and set back aggression. You've got a lot of people that opposed what happened on the war, stood there and didn't want to move, that are now trying to revise history. And so I am not persuaded by the critics at all. I know what we did. There wasn't anything illegal. We tried hard, and I've said so. And it didn't work. But we were not going to let aggression stand. And when he moved into Kuwait, I decided this will not stand, and it didn't. Yes, what's the follow-up? Q The follow-up -- the House Judiciary Committee looks like they're going to recommend special prosecutors and counsel, investigators, and ask the Attorney General to -- THE PRESIDENT: I wonder whether they're going to use the same prosecutors that are trying out there to see whether I was in Paris in 1980 and flew home in an SR71 Blackbird? I mean, where are we going with the taxpayers' money in this political year? So let them look at it. It's no problem to me. But I think at some point somebody ought to say, where is all this money going that goes to pay for these special prosecutors, rummaging through files and proving nothing? I was not in Paris. And we did nothing illegal or wrong here. We tried and it didn't work. And we moved. And that's the answer to it. Q Mr. President, since you know Ross Perot, if you were to run into him while you're out campaigning for reelection, for example, what would you say to him to convince him to -- THE PRESIDENT: Support me? Q -- support you and give up his quest for the presidency? What would you say? THE PRESIDENT: Well, I'd say, Ross, I think I've been a good President. I believe that a man of your ability and talent ought to support me. And we've known each other a long time; in my view, it's been favorable. And just leave it there. I would admit it might be a little bit of a long-shot in persuading him. Q But if he said, well, George, I hear what you're saying, you want no to follow you, but you've got to tell me where you're going, what would you say? THE PRESIDENT: Oh, I'd say, let me refresh you on our domestic agenda. Please give me your support for the balanced budget amendment that we're trying to pass right now and bring along Bill Clinton if you've got any influence on him. We're talking about issues here. We've got a tough crime bill before the Congress. Help me pass it. We've got an MORE - 9 - education reform bill that literally revolutionizes education. Give me a hand with this one. If you know anybody in the Congress -- it appears you may -- give them a call. I'd take this approach, you see, to him. And I'd try to enlist his help on support for our approach to the environment. I'd say, help Re help these democratic countries around the world. Help me help them secure their democracy. You see, I think we have a good agenda, and that's the approach I'd take, anyway. Q Mr. President, you've spent much of your life as part of the two-party system. You've headed one of the major parties. In this unusual political year, how do you assess the viability of the two-party system in the future? And why would any candidate submit himself to grueling primaries if he could just announce and run? THE PRESIDENT: I think the two-party system has really given us the most stable political system in the world. And, yes, we're going through an unusual period. But the two-party system has provided us fantastic historical stability. And you look around the world and compare this system with any other democratic system, and I think that would avail. I'm sure the Brits take great pride in their parliamentary system, but I think our two-party system has provided us with the stability that heretofore we've simply taken for granted. So my view, as this campaign unfolds, as all of us spell out our position on the issues, people are going to recognize that and the two parties will be strong when this election is over. Q And the question of why any candidate would expose himself to the primaries and -- THE PRESIDENT: That's what Barbara was asking me a few minutes ago. Q What's your answer? THE PRESIDENT: Say, hey, I want to continue this job to help this country. I want to help preserve world peace and strengthen it -- and we've done pretty well there. And I want to move forward on these issues that we're talking about here tonight -- the balanced budget amendment -- I won't repeat them all -- but it's worth finishing the job. Nobody likes the primary process. I had a call from a senator, kind of asking how I was holding up because, he said, hey, you've been criticized a little in the newspapers and on the television. And I said, hey, that goes with the job. I'll do my best, and I think things are going to turn around in that regard. But to get out of the arena, to suggest that you're going to run because it's not particularly pleasant, that's not the way I operate. Q Mr. President, there are many polls that now show that in California and elsewhere that most Republicans favor the pro- choice position on abortion. And I wonder, in view of that and in view of the clear feeling of pro-choice in the party, that you feel the platform needs to be changed, and what your own view is on the whole notion of whether the abortion debate is going to be prominent in the fall? THE PRESIDENT: Well, no, I hope the Platform Committee, in their wisdom, adopts the same language as we had before. Having said that, there is room in our party for people that have different views on this issue. I am not persuaded that people all across this country vote on only one issue -- abortion. I think they're interested in world peace. I think they're interested in education. MORE - 10 - I think they happen to be very supportive of the balanced budget with amendment. And so my position is well-known, and I'm going to with me on that issue, and they may disagree with me on the balanced it. But a I say, we've got many good Republicans who disagree stay passionately about. budget amendment or some of these other things I feel very Q percent figure about the economy. But, you know, the Cold War 70- is You mentioned a moment ago the polls -- the Americans, and people are turning inward and asking, well, Mr. over, Desert Storm has become pretty much a faded memory for many the President, American what have you done for us lately? More than 80 percent of track. people now feel that the United States is on the wrong Americans that they are better off than they were four years ago? How, between now and November, are you going to convince not optimistic, be and they're going to see a recovering economy. It THE PRESIDENT: Most Americans are fundamentally feel as robust as we all like, but they're going to say as may economy, they're going to say, hey, things are getting better. that and as they see new opportunities and see a growth they in this to country. them: We've been through a long haul. And then going to say Americans aren't pessimists. They're not down on the I think worry about nuclear war? I think that's a significant worry or less Hey, do your kids go to bed at night with more historic most every -- every family in America is better off for change. the changes that my predecessor and I helped bring about. those I use word "helped." then I think they're going to say, here's what the President has And been And so you've got to look at the whole picture. record balanced budget amendment, strong crime, whatever it is -- -- trying to get through the Congress. And I come back to it the they're going to have a clear choice to make. on the environment. And what's he up against here? good And with I my views on family, and does he share the leadership traits Then they're going to say: DOES this President identify focus want to see in a leader, and hose kinds of things. Those aren't that in now. They're not in focus because five Democrats were there I just hammering away on the President of the United States. out And smile and say, look, we'll meet you in the fall. And Republican was doing the same thing every single night. one Had room. assistance out here from time to time from one or the other in some the saying, we're going to get something done, and take the case to the You know, I'm putting my confidence in the people American to do it. people on the issues. And that's the way I think you ought alarmed right now, at the and as fact a matter -- of fact, some of your advisors are pretty Q But, Mr. President, they aren't anywhere near that THE PRESIDENT: No, they're not alarmed. Q your own poll numbers are on the decline. They are not associating Well, while the economic figures are improving, you, sir, with any improvement in the economy. you, Jim, according to one, I thought it was one of your surveys, THE PRESIDENT: But 70 percent of the people, as I told better. seem to think the economy's getting worse. I think it's getting change. lagging indicator, for example. So it takes a while to see the It takes a while, there's a lag there. Unemployment's a MORE - 11 - I haven't been in the playing field on the primaries. I've been trying to get something done for the country. But when we go to the country and say, do you want a strong crime bill or do you want this watered-down variety that's up in the Justice Department controlled by the Democrats that have been there forever; which do you want -- I think the American people will support me. I'll say to them, do you want a balanced budget amendment that will make the Executive Branch and the Legislative Branch do something about the deficits, or do you want a lot of reasons from some entrenched politicians on Capitol Hill to tell you why it can't be done? And, see, I think when that is in focus, I think that the American people will support ne. I've tried to keep the faith with the people and I think one heartening point is people see the President is a strong leader. They may not like the direction things are going in, but that is something that I find rather comforting. Q So you haven't been tough enough, is that what you're saying? THE PRESIDENT: I need your assistance, Jim, in getting out the message now tonight, loud and clear, on what the President said about the balanced budget amendment. And if you can put an editorial or two on there saying this is a good idea, it would help enormously. I don't think you can do that, but if you could I'd welcome that kind of support. Because that's what the American people want, and we've got to get that message to the Congress. Q Mr. President, you said that your problems stem from the economy. In addition, are some of your problems also related to the Clarence Thomas-Anita Hill hearings? THE PRESIDENT: None. We forget. Now we see a revision. We forget that the American people overwhelmingly supported Clarence Thomas. He is being a gcod Justice. And the fact that some candidates are out there trying to revise that part of history, I'm sorry, I don't agree with that. There may be some. Now, I can't say some people don't agree, that everyone agrees with what I said. I support Clarence Thomas. I think he'll be an outstanding Justice. He passed a Senate that is controlled by the opposition party. He conducted himself with honor in those hearings. And that's my position. And I'm proud to have stayed with him when the going got tough. Q Mr. President, you say that the leadership qualities that are going to come up later are not in focus right now. But it would seem that leadership is the focus, that's the only thing that Ross Perot has been running on is leadership. He has not addressed the issues; you are addressing the issues. How do you feel; what do you say to Republicans who are going over and supporting him about your personal leadership qualities? THE PRESIDENT: I say take a look at what happened in Desert Storm where I didn't have to get anybody else's action; I moved. I saw a threat. I did what was required. And I didn't have to get a Congress controlled by the opposition party to move. The people saw leadership and action there. The people know that the House of Representatives and the Senate control all the legislation. My crime bill, my balanced budget quest, whatever it is, they control it all. And so I think when this campaign gets really rolling -- and it hasn't started from our standpoint when that happens, I think these things will be in focus. so I understand the quest for change and the appeal -- I can bring you the new answer here -- I can understand all that. But I also think the American people are pretty smart. I think they're - 12 - going to look at the overall record. I think they're going to analyze the proposals. I think they're going to look at a person's overall values. And I think then I have the confidence that it won't be just the Republicans that will be supporting me, it will be the guy in the neighborhood who's wondering, who's going to be the best to take care of the criminal elements here? Who's going to support the incentives to improve the economy? That's what I think. Q Mr. President, aren't we into a no-win situation here? Because even if you do win, even if you do defeat Ross Perot, there are going to be a lot of Republicans out there who supported him, and there's going to be a lot of reprisal and revenge. THE PRESIDENT: There's no reprisals. Look, the Americans -- as Helen says, we're through here, but let ES tell you something. You're looking at -- you're dealing in a little cocoon here. We're talking about something big -- faith and confidence in the American people. And this isn't done because there's something on the horizon right now and people are going to -- you know, let them decide. Let them sort out this. And I can understand that appeal -- "I'm from outside, I'll solve all the problems." And some day you guys are going start: How are you going to do it? How are you going to get this through the Congress? What do you believe? Do you think the President's right on the balanced budget amendment? Are you with him or against him? DO you think he's right as he tries to tighten down on crime legislation? How do you feel on the narcotic problem? How do you feel on world peace? Were you with him when he had to make a very tough call on setting back aggression -- a move that was saluted all over the entire world and put this country together like it's never been together in the past, since World War II? And, you see, I think we're dealing in a funny time here -- a time warp. And I think, come fall, when we're out there taking our case to the people, with an improved economy behind us, I still feel confident about the outcome of the political election. And I feel confident about ability to heal any wounds that may have been opened along the way. Thank you all very much. Thank you, Helen. END 8:43 P.M. EDT Constitutional STATE EXPERIENCE WITH BALANCED BUDGET REQUIREMENTS The States have had extensive experience with balanced budget requirements. This summarizes the types of such requirements and provides information on State experience with such requirements. FOUR Every state except Vermont has some type of balanced budget requirement. Forty-three states have some type of constitutional requirement (generally limitations on incurring debt for this purpose), and 21 State have statutory requirements. Obviously, some states have both types of measures; only six States (Arkansas, Connecticut, Kansas, Maine, Mississippi, New Hampshire) rely entirely on statutes. Types of deficit controls There are three basic types of deficit control mechanisms. There are those which: (1) restrict the state's authority to incur debt (either by limiting the dollar amount or by limiting debt to a percentage of some tax or revenue base) ; (2) require submission of a balanced budget by the governor and/or enactment of balanced appropriations by the legislature; and (3) provide for managing a projected or actual deficit (by means of, e.g., line item veto by the governor, across-the-board pro rata reductions, or legislated tax increases). State balanced budget requirements vary widely as to their stringency and effectiveness, and their means of implementation. - Twenty-nine states impose the most stringent type of balanced budget, which calls for the budget to be balanced each year with no carry-over of deficits. - Seven other states with biennial budget cycles require that the budget be balanced for each two-year period. (In general, the most stringent balanced budget states are those west of the Mississippi River and east of the California border). - Seven other states allow a short-term budget deficit to be carried over for only one year (even if the deficit occurs in the last year of a two-year cycle) as long as new revenues are raised to balance the next budget and pay off the carry-over indebtedness. - Three states (Illinois, Louisiana, Nevada) require only that the legislature pass a balanced budget; thus no corrective actions are required if expenditures actually exceed revenues. - Three states (Massachusetts, New Hampshire, New York) require only that the governor present a balanced budget; the legislature thus may pass an unbalanced budget without resorting to subterfuges, such as overly optimistic revenue assumptions. (See Table A for further detail). Methods of Mid-Course Correction Fifteen states have specific requirements for curtailing expenditures in the middle of a fiscal period, in case revenue collections fall short of estimates or unexpected spending occurs. The states classify these mechanisms in three different ways: - Reduction of appropriations (North Carolina, Oklahoma) ; - Reduction of periodic allotments -- that is, apportionment (Hawaii, Kansas, Minnesota, Oregon, Utah, Washington) ; and - Reduction of authorized expenditures (Arkansas, Florida, Michigan, Missouri, New Hampshire, South Dakota, Virginia). The states impose expenditure reduction requirements in various manners: -- The Michigan, Missouri and Oklahoma provisions are expressly imposed by the State Constitution; the remaining provisions are statutes intended to enforce a general constitutional requirement that there be a balanced budget; The Missouri and New Hampshire spending reduction provisions are discretionary; the other 13 are mandatory; -- North Carolina and Oklahoma require that the reductions (with certain exceptions) must be made pro rata, across the board on all accounts; the other 13 states impose no legal bar to disproportionate cuts in certain categories, and certain states expressly authorize differential cutbacks; -- Authority for making the reductions rests somewhere in the Executive Branch: either with the Governor; a subordinate agency head, with or without the approval of the Governor; an Executive branch board; or (in Arkansas) individual agency heads; - 2 - -- In two states, the Executive official must obtain the approval of a legislative branch entity (either the appropriations committee or a special supervisory panel) i in other states, the Executive must consult the legislative body before making cuts. The States' Experience The experience of the states under the mechanisms previously discussed varies greatly due to many factors. First, the portion of any state's budget even subject to the balanced budget requirement ranges, in one estimate, from less than 50% to 100%. Second, most states have separate operating and capital budgets. It is frequently the case that only operating (or general fund) budgets are subject to the balanced budget requirements. (See Table B). There have been assertions that, if the Federal budget were prepared in a comparable manner, the Federal government would be able to comply with state-type balanced budget requirements. (See, e.g., attachment c). States may evade the fiscal discipline requirements by moving functions or entities off-budget, such as by creating authorities or commissions. In addition to being off-budget, such authorities are frequently authorized to issue bonds or other indebtedness which are backed only by the revenues generated by the authority. This is one method by which states evade balanced budget requirements and debt limitations by switching from "full faith and credit" borrowing to non- guaranteed borrowing. States have also shifted from direct expenditures to tax expenditures to avoid restraints. For example, Michigan authorized an income tax credit for contributions to educational institutions. Further, some states have evaded debt limitations by defining state lottery receipts not be "revenue". Another method employed by states for avoiding balanced budget requirements has been to delegate functions to local governments, which are not subject to the requirements, or, through political pressure, shift them to the federal government. States have also engaged in intragovernmental borrowing of funds, and in accounting changes which mask transactions. Attachments - 3 - PN6081 P7 WHRC t: A TREASURY For Speakers, Writers, OF HUMOROUS and Home Reference QUOTATIONS HERBERT V. PROCHNOW and HERBERT V. PROCHNOW, Jr. HARPER & ROW, PUBLISHERS NEW YORK, EVANSTON, AND LONDON 1817 84 DEBATE-DEBT DECENCY-DECISION 85 greater fund of innocent amusement than any other single subject. 1497 God forbid that I should be out of debt, as if, indeed, I could not Dorothy L. Sayers be trusted. François Rabelais 1476 All our knowledge merely helps us to die a more painful death than 1498 If you want the time to pass quickly, just give your note for ninety the animals that know nothing. Maurice Maeterlinck days. Robert Bailey Thomas 1477 A man's dying is more the survivors' affair than his own. Thomas 1499 A man properly must pay the fiddler. In my case it so happened Mann that a whole symphony orchestra often had to be subsidized. John 1478 I know of nobody that has a mind to die this year. Thomas Fuller Barrymore 1479 Tyrawley and I have been dead these two years; but we don't 1500 In the midst of life we are in debt. Ethel Watts Mumford choose to have it known. Lord Chesterfield 1501 Debts shorten life. Joseph Joubert 1480 When a man dies, and his kin are glad of it, they say, "He is 1502 The old woman who triumphantly announced that she had borrowed better off." Edgar W. Howe money enough to pay all her debts. P. L. Lord 1481 I don't think anything is ever quite the same to us after we are dead. 1503 It is only by not paying our bills that we can hope to live in the Don Marquis memory of the commercial classes. Oscar Wilde 1482 Death: to stop sinning suddenly. Elbert Hubbard 1504 You are not in debt, Sextus. I assure you, Sextus, you are not in 1483 Everything comes to him who waits-among other things, death. debt, for a man is in debt, Sextus, only if he can pay. Martial Francis H. Bradley 1505 Some people use one half of their ingenuity to get into debt, and the 1484 The long habit of living indisposeth us for dying. Sir Thomas other half to avoid paying it. George D. Prentice Browne 1506 A small debt produces a debtor; a large one an enemy. Publilius 1485 We all labor against our own cure, for death is the cure of all Syrus diseases. Ibid. 1507 Scientists say that certain musical notes can prevent sleep. So can 1486 The reports of my death are greatly exaggerated. Mark Twain certain promissory notes, professor. Arkansas Gazette 1487 Those who welcome death have only tried it from the ears up. 1508 It is a sure sign of an improved character, if you like paying debts Wilson Mizner as much as getting money. Georg C. Lichtenberg 1488 One can survive everything nowadays except death. Oscar Wilde 1509 The two greatest stimulants in the world are youth and debt. Ben- 1489 My wallpaper is killing me. One of us must go. Ibid., as he lay jamin Disraeli dying in the Hotel Alsace in Paris 1510 A habit of debt is very injurious to the memory. Austin O'Malley 1490 I am informed from many quarters that a rumor has been put DECENCY about that I died this morning [February, 1951]. This is quite 1511 Decency is indecency's conspiracy of silence. George Bernard untrue. Sir Winston Churchill Shaw 1491 I cannot forgive my friends for dying; I do not find these vanishing DECEPTION acts of theirs at all amusing. Logan Pearsall Smith 1512 The secret of life is to appreciate the pleasure of being terribly 1492 Death rides a fast camel. Arab Proverb deceived. Oscar Wilde 1493 To his physician, who said, "General, I fear the angels are waiting 1513 If you deceive me once you are a scoundrel; if you deceive me often for you": Waiting, are they? Waiting, are they? Well let 'em you are a smart man. Yugoslavic Proverb wait! Ethan Allen 1514 It is in the ability to deceive one's self that the greatest talent is shown. Anatole France DEBATE DECISION 1494 It's better to debate a question without settling it than to settle a question without debating it. Joseph Joubert 1515 Decide promptly, but never give any reasons. Your decision may be right, but your reasons are sure to be wrong. Lord Mansfield DEBT 1516 A decision is the action an executive must take when he has informa- 1495 Debt is a trap which a man sets and baits himself, and then de- tion so incomplete that the answer does not suggest itself. Arthur liberately gets into. Josh Billings William Radford 1496 Never run into debt, not if you can find anything else to run into. 1517 They are decided only to be undecided, resolved to be irresolute, Ibid. adamant for drift, all-powerful for impotence. Sir Winston Churchill Table A Table 3 BALANCED BUDGET REQUIREMENTS, 1984 (explanation of table at end of next page) Category I Category II Statutory or Constitutional? Nature of Requirement U = number of points 1) = number of points (1) (2) (4) (6) (8) Gover- Legis- May Carry State State Degree nor lature- Over a Cannot Cannot of Only Only Deficit Carry Carry Strin- (1) (2) has to has to but Must Over a Over a gency Submit a Pass a be Corrected Deficit Deficit Scale States and Statu- Consti- Balanced Balanced In Next Into Next Into Next (high = 10: Region tory tutional Budget Budget Fiscal Year Blennium Fiscal Year low = 1) New England Connecticut X S S S 5 Maine X S 9 Massachusetts X c 3 New Hampshire X S 2 Rhode Island X C 10 No Requirement 0 Vermont Mideast Delaware C 10 Maryland X c C c 6 New Jersey X c 10 New York X c 3 Pennsylvania X S,C S S,C 6 Great Lakes Illinois c c 4 Indiana X C 10 Michigan X c 6 Ohio X X S,C 10 Wisconsin & 6 Plains lowa c 10 Kansas 10 Minnesota xxxxxxx c X X S,C 8 Missouri X c 10 Nebraska c 10 North Dakota c 8 South Dakota X S,C 10 Southeast Alabama X C 10 Arkansas X S 9 Florida X X S,C 10 Georgia X c 10 Kentucky X X c S 10 Louisiana X c 4 Mississippi X S 9 North Carolina X X S.C 10 South Carolina X X S.C c 10 Tennessee X c c 10 Virginia X X S.C 8 West Virginia X C 10 Southwest Arizona c 10 New Mexico X C 10 Oklahoma X c 10 Texas X c c 8 Rocky Mountain Colorado X C 10 Idaho X C 10 Montana X C C C 10 Utah X X S.C 10 Wyoming c 8 Far West California X c C 6 Nevada X S C 4 Oregon X X S c 8 Washington X X S,C 8 Alaska X S c 6 Hawall X X S,C C C 10 Source: ACIR staff compilation based on 1984 surveys of executive and legislative fiscal directors, and Limitations on State Defi- cits, Council of State Governments, Lexington, KY, May 1976. Continued on next page. - 40 - Table A (cont.) Table 3 (cont.) BALANCED BUDGET REQUIREMENTS, 1984 NOTE: The following ($350,000). Arizona ($350,000). Colorado ($100,000). Iowa ($250,000). Kansas New states have a balanced budget relating to constitutional debt limitations (debt limit ($1,000,000), in paren- thesis): Alaska Missouri ($100,000), Nebraska ($100,000), New Jersey (1% of appropriations), South Dakota Kentucky Mexico ($200,000). ($500,000). Ohio ($150,000), Oklahoma ($500,000), Rhode Island ($50,000), ($100,000). Texas ($200,000), and Utah (1.5% of taxable property value). CALIFORNIA: Article XVI, Sec. 1, requires that the legislature shall not, in any manner, create a debt deficit, in excess as of $300,000 without a vote of the people. This section has been interpreted to allow a carry-over long as the deficit is repaid within "a short period of time." CONNECTICUT: If revenues are deficient by 5% due to lower than projected revenue collections Subsection after the C) budget has been passed, the General Assembly must approve expenditure cuts. (Statute 4-85; Gen- DELAWARE: "No appropriation, supplemental appropriation or budget act shall cause the aggregate the estimated State State Fund appropriations enacted for any given fiscal year to exceed 98 percent unencumbered of funds re- eral General Fund revenue for such fiscal year from all sources, including estimated for this 2 maining Fund and a 5 percent Budget Reserve Account to be used for an unanticipated deficit. There of general are no at the end of the previous fiscal year (Const. Art. VIII, Sec. 6) The state provides Percent provisions in the constitution that call for specific action if a projected deficit exceeds 7 percent fund revenues. INDIANA: "No law shall authorize any debt to be contracted, on behalf of the state, except in the following cases: To meet casual deficits in the revenue (Const. Art. 10, Sec. 5) KENTUCKY: Agencies must set aside 2.5% of their budget each year in the event of a revenue shortfall (KRS VERMONT: 48.120). Governor is statutorily required to submit recommendation to alleviate deficits from balanced previous budget. years in his or her budget request. There is no requirement that the governor must submit a WEST VIRGINIA: "No debt shall be contracted by this state except to meet casual deficits in the revenue (Const. Art. X, Sec.4) WISCONSIN: Section $20.004 of Wisconsin statutes requires that no bill may be passed if the bill General will cause Fund the General Fund balances at the end of the biennium to be less than one percent of total appropriation. of Table: The degree of stringency index is based on the number of points each state where can a receive state had for Explanation as noted above each of the "Nature of the Requirement" columns. In cases is counted. For its requirement, three features incorporated in its requirement, only the highest for each category and a more than in case where a state had a requirement that the Governor has to submit a balanced the budget, latter, not 2 example, a that the legislature has to pass a balanced budget, it would only receive 2 points for point) and requirement in addition for the former [see Category II]. If that state's requirement was both statutory (hypothetical) (1 points (2 points), it would only receive the 2 points for the latter [see Category I]. Such a the subjective constitutional state would receive a total of 4 points. The weights assigned to different features are based on judgment of the ACIR staff. From: Advisory Commission on Intergovernmental Relations, 1987 SENT BY:N.A.S.B.O. & F.F.I.S. ; 6- 4-92 ;11:30AM ; (202) 624-7745-> 395 6170;# 1/ 3 Budgetary Processes in the States December 1989 Prepared by Marcia A. Howard and Laura L. Shaw Post-It™ brand fax transmittal memo 7671 # of pages 3. Co. To Barry Anderson From Marcia Howard Co. NASB Dept. Phone # 624-5382 Fax # 395-6170 Fax # 624-7745 National Association of State Budget Officers SENT BY:N.A.S.B.O. & F.F.I.S. ; 6- 4-92 ;11:30AM ; (202) 624-7745-> 395 6170;# 2/ 3 NOTES TO TABLE N Arizona May carry over "casual deficits," i.e., not anticipated. New York Technically, the Governor is not required to sign a balanced budget. However, in order to consummate the spring borrowing the Governor must certify that the budget is in balance. North Carolina Governor must maintain a balanced budget. He does not sign legisla- tion. Ohio There is no constitutional or statutory requirement that the Governor submit or the legislature enact a balanced budget. There is a constitu- tional requirement that the legislature provide sufficient revenues to meet state expenses. The Governor is required by statute to examine monthly the relationship between appropriations and estimated revenues and to reduce expenditures to prevent imbalance. Pennsylvania May carry over deficit into subsequent year only. South Carolina Formal budget submitted by Budget and Control Board, not Governor. Virginia The Constitution specifies that expenditures shall not exceed revenues at the end of the biennial period. 28 SENT BY:N.A.S.B.O. & F.F.I.S. ; 6- 4-92 :11:30AM ; (202) 624-7745-> 395 6170;# 3/ 3 Table Balanced Budget Requirement Governor Legislature Governor Must Submit Nature of Must Pass Nature of Must Sign Nature of May Carry Balanced Budget Requirement Balanced Budget Requirement Balanced Budget Requirement Over Deficit State (Y, N) (C, 9) (Y,N) N) (C,S) (Y,N) (Y, (C, 5) (Y,N) Alabama Y C,S Y C,5 Y C,S N Alaska Y S Y s N . Y Arizona Y c Y c Y c Y* Arkansas Y s Y S Y $ N California Y c N . N - Y Colorado N - Y c Y c N Connecticut Y S Y $ N . N Delaware Y c Y C Y C N Florida Y $ Y c Y $ N Georgia Y C Y c Y c N Hawaii Y C,S N - Y C,S N Idaho Y c Y c N - N Illinois Y c Y c N - N Indiana Y c Y c Y c N lowa Y c Y c N a N Kansas Y c Y C Y c N Kennicky Y C,S Y C Y c N Louisiana Y C.S Y S Y C,S Y Maine Y S Y C Y S N Maryland Y c Y c N - N Massachusetts Y c Y c Y c Y Michigan Y c Y c Y c N Minnesota Y $ Y $ N . N Mississippi Y $ Y S Y $ N Missouri Y c N . Y c N Montana Y c Y c N - N Nebraska Y c N - N - N Nevada Y S Y c N - N New Hampshire Y S N - N - Y New Jersey Y c Y c Y c N New Mexico Y c N - N - N New York T c N - N° - Y North Carolina Y c Y c N* c N North Dekona Y S Y S Y $ N Ohio N* - N° - N - N Oklahoma Y C,S Y c Y c N Oregon Y c Y c Y C N Pennsylvania Y C.S N - Y c & Rhode Island Y c Y c Y 5 N South Carolina . . Y c Y c N South Dakota Y c Y c Y c N Tennessee Y c Y c Y c N Texas - * Y c Y c N Utah Y S Y c Y S N Vermont N - N - N -- Y Virginia Y S N " N - N* Washington Y S N - N - N West Virginia N - Y c Y c N Wisconsin Y c Y c Y c N Wyoming Y c Y c Y c N Codes: Y...Yes C...Constitutional N...No S...Statutory 27 (Ferguson/Grossman) June 3, 1992 BUDGET Draft Two PRESIDENTIAL REMARKS: PRESS CONFERENCE JUNE 4, 1992 X X x X TBD x X X X Three years ago, in my first address to Congress, I asked X x x X x X X x the Senate and the House to pass a constitutional amendment x X X requiring a balanced budget. Every year since, I have repeated smealy 6782 that call. I believed then, and I continue to believe, that a balanced budget amendment is the surest way to force the federal government to live within its means. Like President Reagan before me, I have tried to get 224-0636 Congress to restrain the growth of federal spending. We've tried compromise. We've tried confrontation. We've tried quiet Senate maybe diplomacy with congressional leaders. None of it has worked. OHB Bruce X Now we have reached a turning point. This month both houses X X of Congress will at last vote on a balanced budget amendment. It is impossible to underestimate the importance of this one decision: it will effect every other decision the government makes from that moment on. Victory will not come easily. Republicans are uniting behind the amendment, and many responsible Democrats have x joined X X X us as well. But passage requires a two-thirds majority from both X the Senate and the House -- and the majority leadership in both the House and the Senate have declared their X opposition. Those who oppose the amendment must understand: this is not a partisan fight; this is beyond election-year politics. This is a fight for the economic security of the American people. 268. 2 220 I realize that a balanced budget amendment is a radical step. It will require a revolution in the way the federal 26, protict traph ? and government conducts its business That is the point The federal government's $400 billion annual deficit is an outrage. The system itself is broken. Nothing short of radical change will fix it. Let's be clear about two fundamental facts. First, the budget will not be balanced without a robust, growing economy, and higher taxes will only impede future economic growth. Second, the budget deficit exists not because the American people are undertaxed, but because government is too big and it spends too much. That is why a balanced budget amendment should require more than a simple majority vote for tax increases. The federal government must at long last learn to live by a Mc #170 Wisc, clare V+ a basic American principle: it is simply wrong to spend more money than you take in. Every American family knows what I mean and state governments are already required to do the same, through their own balanced budget provisions. [constitutional + status I urge every American: Make your voice heard. Write or phone your congressman and senators. Ask that they get serious about fiscal responsibility. Tell them it is wrong to pass on to future generations the cost of our present irresponsibility. Demand that they vote for the balanced budget amendment, and let them know they will pay a price in November if they don't. # # # Fresher TP& Attack 3141 Brotis-day? shipper? TP 3P Administration of George Bush, 1989 / Feb. 9 sending U.S. people out of work-American confidence government by crisis, will not do. And I ask question? on the wane. And our challenge is different. the Congress tonight to approve several me. And We're fortunate-a much changed land- wary scape lies before us tonight. So, I don't pro- measures which will make budgeting more is very erseas. But I pose to reverse direction. We're headed the sensible. We could save time and improve could right way, but we cannot rest. We're a efficiency by enacting 2-year budgets. be Forty-three Governors have the line-item with leaders people whose energy and drive have fueled our rise to greatness. And we're a forward- veto. Presidents should have it, too. And at assistance looking nation-generous, yes, but ambi- the very least, when a President proposes to assistance tious, not for ourselves but for the world. rescind Federal spending, the Congress insidious Complacency is not in our character-not should be required to vote on that proposal poison our instead of killing it by inaction. And I ask the You before, not now, not ever. past. coopera- And so, tonight we must take a strong the Congress to honor the public's wishes in Peru- America and make it even better. We must by passing a constitutional amendment to or address some very real problems. We must require a balanced budget. Such an amend- So, you establish some very clear priorities. And we ment, once phased in, will discipline both question- must make a very substantial cut in the the Congress and the executive branch. Federal budget deficit. Some people find Several principles describe the kind of supposedly strike that agenda impossible, but I'm presenting America I hope to build with your help in big to you tonight a realistic plan for tackling it. the years ahead. We will not have the about that to My plan has four broad features: attention luxury of taking the easy, spendthrift ap- prove of thought. to urgent priorities, investment in the proach to solving problems because higher future, an attack on the deficit, and no new spending and higher taxes put economic taxes. This budget represents my best judg- growth at risk. Economic growth provides 2:25 in ment of how we can address our priorities. jobs and hope. Economic growth enables us p.m. House. Wil- There are many areas in which we would to pay for social programs. Economic Drug Control all like to spend more than I propose; I growth enhances the security of the Nation, understand that. But we cannot until we and low tax rates create economic growth. get our fiscal house in order. I believe in giving Americans greater Next year alone, thanks to economic freedom and greater choice. And I will growth, without any change in the law, the work for choice for American families, Federal Government will take in over $80 whether in the housing in which they live, Congress billion more than it does this year. That's the schools to which they send their chil- right-over $80 billion in new revenues, dren, or the child care they select for their with no increases in taxes. And our job is to young. You see, I believe that we have an home allocate those new resources wisely. We can to obligation to those in need, but that govern- afford to increase spending by a modest months and ment should not be the provider of first amount, but enough to invest in key prior- what friends resort for things that the private sector can ities and still cut the deficit by almost 40 best produce better. I believe in a society that is my percent in 1 year. And that will allow us to America's free from discrimination and bigotry of any meet the targets set forth in the Gramm- kind. And I will work to knock down the honest com- Rudman-Hollings law. But to do that, we barriers left by past discrimination and to mission of must recognize that growth above inflation build a more tolerant society that will stop rtunities on in Federal programs is not preordained, such barriers from ever being built again. be praise that not all spending initiatives were de- send signed to be immortal. I believe that family and faith represent us the moral compass of the Nation. And I'll govern. I make this pledge tonight: My team and I are ready to work with the Congress, to work to make them strong, for as Benjamin to this Franklin said: "If a sparrow cannot fall to war and form a special leadership group, to negoti- the ground without His notice, can a great And 8 ate in good faith, to work day and night-if nation rise without His aid?" And I believe as Presi- that's what it takes-to meet the budget in giving people the power to make their inflation targets and to produce a budget on time. We cannot settle for business as usual. own lives better through growth and oppor- rates and Government by continuing resolution, or tunity. And together, let's put power in the hands of people. 75 Alaska 907-465-2450 Dare Dienderff crimail Leg. Affairs Yes - constitutionally prohibits incorring debt west Virginia 304-558-2040 Brian Armentrout Leg. Services yes - Art. 6, sec 51 of stake constitution toachieve. be easy 2 decision the government makes from that moment on, and it will bear directly on the quality of life we leave the generations who follow us. A Victory will not consertably. The amendment requires a It two-thirds majority from both the Senate and the House. is not a partisan But fight; this goes far beyond election-year politics. This is a fight for the economic security of the American people. ONE realize that some in Washington consider a balanced budget amendment a radical step. I strongly doubt that the American people consider it radical. It is just common sense. Each month millions of American families sit down to balance their checkbooks. They They unders fand, EStaby simply tate governments abide by their own balanced budget provisions. The federal government do the same must The moment is at hand. In the coming days, we will have an extraordinary opportunity, a rare chance to restore fiscal sanity to the federal government. If we fail, our grandchildren, and their grandchildren, will bear the burden. I refuse to believe we will make them pay the price of Washington's irresponsibility. For their sake, I urge every Congressman and Senator to join me in supporting a swift approval of a balanced budget amendment. Z 4562983- SENT BY:Xerox Telecopier 7020 ; 6- 4-92 :10:57AM ; (Hinchliffe/Gershowitz) June 3, 1992 11 a.m. BUDGET Draft Two PRESIDENTIAL REMARKS: BALANCED BUDGET AMENDMENT RADIO ADDRESS I want to talk to you today about a big idea -- a big change in the way your government works. For the past 12 years President Reagan and I tried to get Congress to restrain federal spending. We tried compromise. We tried confrontation. We tried quiet diplomacy with the leaders of Congress. We tried going over their heads to the American people. None of it worked. And so, my friends, the time has come to take dramatic action. We must pass a Constitutional amendment mandating a balanced budget. Our future is at stake, since the biggest obstacle to our economy recovery is the budget deficit. For most of our history there was an unwritten rule against deficit financing. But in recent times we've moved away from that and now we're borrowing from the future to pay for our indulgences of the present. I've called for big changes in many areas -- revolutionary reforms in how this nation's gridlocked capitol does business. But the balanced budget is where we must start. Beginning well before I became your President, I've fought for a balanced budget amendment. As a matter of fact, on February 9, 1989, the very first legislative proposal I made upon becoming President called for a balanced budget -- and in each of the three budgets I've submitted since, I've repeated that plea. If Congress had supported my proposal back in 1989, we'd be only two years away from a balanced budget right now. Why am I so fiercely dedicated to this issue? Look at your ptupe soun Bob Danus Ed Mazier Actig General Comer! of the wry own house. You know what happens when you spend more than you ofM make. The devil's going to come, demanding his due. Well that's B what our American family faces right now. When you hear about our $400 billion deficit, remember -- that's not Monopoly money. That's your money, as sure as your own personal debts will have to be paid with your money. It's a critical situation when our interest payments exceed our social spending; when the principal we owe has nearly doubled in two years; when this spending riptide has us drowning in debt, dragging us further out to sea. Boby rady 4844 Dame sayo 43/1 This amendment will bring us back to shore. It says the gov- ernment can't spend more than it takes in. Nothing could be more simple. Nothing could be as tough. Nothing could work as well. It's past time to make this government as accountable with your money in America's house as you must be with your money in your house. 34 of our states already demand balanced budgets. 80% of the American people want this amendment, and the tougher scrutiny of government spending which it will require. You're fed up. You know it's time for partisan posturing to yield to responsibility to govern. You know it's time to protect our children's children -- and you're impatient to enact this solemn bond between generations. There's something you can do right now. The House will vote on this within days. Make your voice heard. Call and tell Con- gress to stop treating our Federal treasury like the corner cash machine. Call and tell Congress to stop mortgaging your future. You know, for a long time on this issue I've felt like a 3 prophet in the desert. Now, I'm glad so many Democrats are finally clambering on board the motion I've called for so urgently for so long. We must join together, inspired by Thomas Jefferson's words: "I place public debt as the greatest of the dangers to be feared." We have within our grasp the power to conquer that fear. Our country's economy -- our country's future -- will be the stronger for it. God bless you, and this nation. # # # # Mary or aift Table 3 State Balanced Budgets and Deficit Limitations: Constitutional and Statutory Provisions X-6697 Governor Governor May Carry May Not May Not Constitutional Must Legislature Must Over Deficit Carry Over Carry Over Limit on Submit a Must Pass Sign a For One Deficit Deficit General Balanced a Balanced Balanced Year into Next into Next Obligation Budget Budget Budget Maximum Biennium Fiscal Year Debt1 State C,S YR YR NP NP YR YR Alabama Alaska2 S NP NP YR $350.000 S S Arizona S NP NP NP YR YR NP Arkansas NP YR YRS NP YR' 300,000 California YR S C C C C C YR Colorado Connecticut YR YR NP NP NP NP YR C C C NP YR YR NP Delaware S NP NP NP YR NP Florida C NP NP 4 Georgia YR YR YR NP C,S NP C,S NP NP NP 5 Hawaii C C NP NP NP YR 2,000.000 Idaho C NP NP NP NP NP Illinois C C C NP YR YR 0 Indiana C C C NP NP NP NP 250,000 lowa $ S NP NP YR YR 1,000,000 Kansas YR C C C NP YR 500,000 Kentucky Louisiana YR YR NP NP NP 6 YR YR NP NP NP NP NP 2,000,000 Maine Maryland C NP YR' YR' YR' NP c t Massachusettes C,S NP NP NP NP NP NP C C C NP YR YR 0 Michigan CS CS S CS NP NP Minnesota C,S S NP NP NP NP NP 8 Mississippi C C C NP NP YR 0 Missouri C C NP YR YR YR NP Montana C C C NP NP NP 100,000 Nebraska S C NP NP NP NP AV Nevada New Hampshire S NP YR NP YR YR NP NP YR YR 9 New Jersey C C C New Mexico NP NP YR NP NP YR AV C NP C C NP NP V New York North Carolina C C C NP YR YR YR YR YR YR NP YR NP NP North Dakota YR YR YR NP YR YR 10 Ohio S NP NP NP YR YR V Oklahoma NP 50,000 C,S C.S. NP NP Oregon Pennsylvania C c S C NP NP YR Rhode Island C,S C.S CS NP NP YR V South Carolina c C NP YR YR 11 C C C C NP NP YR 100.000 South Dakota C C c NP NP YR NP Tennessee C C C NP NP NP 200,000 Texas YR $ C NP NP YR AV Utah Vermont NP NP NP NP NP NP NP S NP NP S S V,T NP Virginia Washington NP NP NP YR NP T S West Virginia2 NP NP NP NP NP NP AV Wisconsin Wyoming YR YR NP YR YR AV YR There are 34 states corrently, which have sone provision Calling for a batanced State budget 6 Advisory Commission on Intergovernmental Relations (Ferguson/Grossman) June 3, 1992 BUDGET Draft Three PRESIDENTIAL REMARKS: PRESS CONFERENCE JUNE 4, 1992 I have just signed a recission bill cutting $8 billion from this year's federal budget. Eight billion dollars sounds like a lot of money, and it is. But the fact remains: it isn't good enough -- not by a long shot. A piecemeal approach simply won't do the job in the face of a $400 billion budget deficit. Runaway federal spending threatens our economic future. We need a constitutional amendment to balance the federal budget, and we need it now. Three years ago, in my first address to Congress, I asked the Senate and the House to pass such an amendment. Every year since, I have repeated that call. I believed then, and I continue to believe, that a balanced budget amendment is the surest way to force the federal government -- both the Congress and the Executive Branch -- to live within its means. Like President Reagan before me, I have tried to get Congress to restrain the growth of federal spending. We've tried compromise. We've tried confrontation. We've tried quiet diplomacy with congressional leaders. Nothing has worked. Now we have reached a turning point. This month both houses of Congress will at last vote on a balanced budget amendment. It is impossible to underestimate the importance of this one decision: it will effect every other decision the government 2 makes from that moment on, and it will bear directly on the quality of life we leave the generations who follow us. Victory will not come easily. The amendment requires a two- thirds majority from both the Senate and the House. This is not a partisan fight; this goes far beyond election-year politics. This is a fight for the economic security of the American people. I realize that some in Washington consider a balanced budget amendment a radical step. I strongly doubt that the American people consider it radical. It is just common sense. Each month millions of American families sit down to balance their checkbooks. They understand - and live by -- a basic principle: it is simply wrong to spend more money than you take in. [48] state governments abide by their own balanced budget provisions. The federal government must live by that principle as well. The moment is at hand. In the coming days, we will have an extraordinary opportunity, a rare chance to restore fiscal sanity to the federal government. If we fail, our grandchildren, and their grandchildren, will bear the burden. I refuse to believe we will make them pay the price of Washington's irresponsibility. For their sake, I urge every Congressman and Senator to join me in supporting a swift approval of a balanced budget amendment. # # # after the legis budget who Sun 2 50u, bad bill he must ins that revs + exps = Congress to cut almost 8 boxined DARMAN in wasteful spending projects. Tonight, I change have just signed the congress' pouse. (Ferguson/Grossman) It is not 02 JUN P6:31 P6: all that bent I and For, June 3, 1992 3 it is BUDGET a start. Draft Four PRESIDENTIAL REMARKS: PRESS CONFERENCE JUNE 4, 1992 just signed a $8 billion The from this year's Enderal that we will save Eight billion dollars sounds like a lot of money, and it is. But the fact remains: it isn't good enough -- not by a long shot. A piecemeal approach simply won't several hundred- do the job in the face of a $4.00 billion budget deficit. Runaway federal spending threatens our economic future. We need a constitutional amendment to balance the federal budget And we need it now. political And thereyster as it is now simply isn't facing upto its responsibility Three years ago, in my first address to Congress, I asked the Senate and the House to pass such an amendment. Every year since, I have repeated that call. I believed then, and I continue to believe, that a balanced budget amendment is the surest way to force the federal government -- both the Congress and the Executive Branch -- to live within its means. Like President Reagan before me, I have tried to get Congress to act responsibly and restrain the growth of federal spending. We've tried compromise. We've tried confrontation. We've tried quiet diplomacy with congressional leaders. Nativing But name 7 this has been enough Now we have reached a point, This after years of waiting, both houses of Congress will vote on a balanced budget amendment. It is impossible to underestimate the importance of this one decision: it will affect every other 1 2045662181 4562983- SENT BY:Xerox Telecopier 7020 ; 6- 4-92 :10:57AM ; Jush Bolton 2230 THE WHITE HOUSE WASHINGTON + Dare tayler TELEPHONE INTERGOVERNMENTAL AFFAIRS FACSIMILE: (202) 456-6697 FACSIMILE TRANSMISSION (202) 456-2362 DATE: 6/4/92 TO: Dan Fat 6218 FROM: Ms. Mary McClure Special Assistant to the President Office of Intergovernmental Affairs Room 163 2 A Bano beth fed paid r state debts And for lept The White House Washington, D.C. 20500 pup balaned budget we dat have that NUMBER OF PAGES TO FOLLOW: MESSAGE: 48 have sume sort of balanced ant 315 in to states Some in cut states delat to 3 budgenes 4.1 states is for & operating it a "49 States inlestrect then constitution or station to require a balanced budgett" Vermont I 2045662181 The White House- : 4-92 -9 Affect SENT Table 3 State Balanced Budgets and Deficit Limitations: 44 Constitutional and Statutory Provisions Governor Governor May Carry May Not May Not Constitutional Must Legislature Must Over Deficit Carry Over Carry Over Limit on Submit I Must Pass Sign a For One Deficit Definit General Balanced a Balanced Balanced Year Into Next Into Next Obligation State Budget Budget Budget Maximum Blennium Fiscal Year Debt Alabama C,S YR YR NP NP YR YR Alaska² NP YR $350.000 Arizona S $ $ NP Arkanses S NP NP NP YR YR NP California YR NP YR YRS NP YR 300,000 Colorado C C C C C YR YR YR NP NP NP NP Connecticut C C NP YR YR NP Delaware Florida C NP NP NP YR NP 4 Georgia YR YR NP NP NP Hawaii NP C.S NP NP NP $ idaho C NP NP NP YR 2,000.000 Illinois C NP NP NP NP NP Indiana C C NP YR YR 0 lows YR YR C,S YR YR C,S C,S YR NP YR C C.S S C C C C,S c S c C $ C NP c C C S C S $ c C C S C C C c $ C NP NP NP NP 250,000 Kansas $ NP NP YR YR 1,000,000 YR YR 500,000 Kentucky C C NP Louisiana YR YR NP NP NP 8 Maine NF NP NP NP NP 2,000,000 Maryland C NP YR' YR' YR NP Massachusettes NP NP NP NP NP NP Miohigan c C NP YR YR 0 Minnesota C,S CS S CS NP NP NP NP NP NP & Mississippi NP Missouri C C NP NP YR 0 Montana C NP YR YR YR NP Nebraska c c NP NP NP 100,000 C NP NP NP NP AV Novada New Hampshire NP YR NP YR YR NP New Jersey c C NP YR YR . New Mexico NP YR NP NP YR AV New York NP C C NP NP V C C NP YR YR YR North Carolina North Dakota YR YR NP YR NP NP YR YR NP YR YR 10 Ohio Oklahoma NP NP NP YR YR V Oregon C,S C.S NP NP NP 50,000 Pennsylvania C S c NP NP YR YR V Rhode Island C.S C.S NP NP South Carolina C C NP YR YR 11 South Dakota C c NP NP YR 100,000 Tennessee C C NP NP YR NP C C NP NP NEW 200,000 Texas Utah C NP NP YR YR AV Vermont NP NP NP NP NP NP NP S $ V.T Virginia $ NP NP Washington S NP NP NP YR NP T West Virginia2 Wisconsin NP NP NP NP NP NP AV Wyoming YR YR YR NP YR YR AV pretent which most a is maximum point on gungsmiz 41 only ones that would be as stringent would - only 9 states 6 Advisory Commission on Intergovernmental Relations be those not able to cary / over a defecit Z The White House- SENT BY:Intergovernmental Affs; 6- 4-92 :10:03AM ; Table 3 (cont.) State Balanced Budgets and Deficit Limitations: Constitutional and Statutory Provisions that a meaninal Key AV-Percentage of property value NP-No provision YR--Yes/restriction applies T-Percentage of taxes C-Constitutional provision S-Statutory provision of aimed V-Popular vote required for any debt 1 Different provisions may apply to other long- and short-term debts. 2 Information not available. attaned 3 May carry over only with legislative concurrence. budget 4 Not more than 10% of prior year's net general revenues. 6 Not to exceed 20% of average of General Fund revenues for 3 fiscal years preceding: may not be exceeded by popular vote. a Limited to 10% of 3-year average of Bond Security and Redemption Fund. , General Fund must have positive balance at end of Fiscal year of proposed budget. 8 5% of General Fund. 9 5% of General Fund. 10 Highway, $500 million; coal, $100 million. Limited to 5% of last completed fiscal year revenue for capital improvement bonds Source: National Association of State Budget Officers, Budgetary Processes in the States, 1987. 624-9382 Mangha Howard, Deputy Director 43 a vast majority of states have sureting 258 - 9 states can carry over a defent -compone - % foudget required - Federal proposal will cover it all ? - For most states in may states - most of the at least 1/2 vay budget in all you need is state corered a majority of by state - For some only half the elected - - in is covered some you need maj of voting a line item veto in federal: more stringt makes it easier for a GOV to balance the budget Advisory Commission on Intergovernmental Relations 7 E The White House- : 4-92 -9 Affert SENT Davierdoring Yrstitutional Advistatuber of Leg. Mains prohibits incurry debt Teny Lauterback willing la Alaska 907/465-3800 -2450 West vinginia 2040 .304/348-451 I 598-2040 constit or statutory Yes requirements stalu balanced Art. const Armentrout Brian budget. 6 : See 51 Leg. services More Budy Dewritter 68 Amerdment JIM MURR 306 O 8 bilic dolla recisor- bill his going to sign Thus night get Phil Brady