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Jarvis Tax Reform 6/20/92 [OA 7575] [3]
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26
22
6
2
BEHAVIOR: Plans Link Aid to Education
Continued from A22
These are disquieting ideas for
censes for students who fail to
anything about it, Payne says.
many in Wisconsin, Some wonder
maintain a C average is balanced
As with the driver's license law
if the state would be inviting child
by another new state law guaran-
in Arkansas, operational problems
abuse or other problems by en-
teeing college aid to students who
have somewhat dampened the
couraging possibly mismatched
keep their grades at B or above
ideological firefight over Learn-
teens to marry. To others, discour-
Though neither Thompson nor
fare. In July, 1990, a federal district
aging births among welfare recipi-
the Legislature has sought com-
judge shut down, the program in
ents carries an odor of racial poli-
promise in Wisconsin, their clashes
Milwaukee County because the at-,
tics, sharpened by the fact that
over welfare reform have produced
tendance records used to generate
David Duke has long advocated the
a somewhat similar balance.
sanctions were riddled with errors;
idea.
Thompson angered liberals by cut-
the judge lifted the'order only after
In Wisconsin, though, more
ting welfare benefit levels in his
the state added elaborate new
whites than blacks receive welfare
first term. But requiring teen-age
procedural safeguards.
and Thompson denies any racial
mothers to attend school has com-
But under the new system, the
intent in his Bridefare initiative.
pelled him to put money back into
number of monthly penalties has
Aides also point to the fact that a
the system for day care, transpor-
dropped by two-thirds, to about
similar plant has been proposed by
tation, counseling and alternative
740 a month. That decline has come
New Jersey state Assembly Major-
education. The state now spends
despite a rising dropout rate in
ity Leader Wayne R. Bryant, a
more on these new services than it
Milwaukee, where half of all
black Democrat. And though the
saves in Learnfare sanctions.
Wisconsin teens who are covered
Democrats hold a -seat advan-
'Conservatives are more willing
by Learnfare regulations live.
tage in the Wisconsin Assembly,
to put up the funds for these
"That might suggest this pro-
Republican Thompson's effort
activities, if the bargain is negoti-
gram is having little, if any, im-
failed there earlier this year by just
ated" to include responsibilities,
bact," says Lois, Quinn, a senior
a single vote; Assembly Speaker
researcher at the University of
Walter Kunicki says it is not clear
Wisconsin at Milwaukee's Em-
that Democrats could beat back the
ployment and Training Institute,
program again.
which is completing a legislatively
In any case, Thompson is not.
says David Long, a senior re-
mandated study of the program.
waiting. Using his unusually ex-
searcher with the Manpower Dem-
Preliminary results of the insti-
pansive veto. authority, he elimi-
onstration Research Corp., which
tute's study suggest that perhaps
nated the Democratic language de
studies welfare reforms.
less than 30% of the teens sanc-
leting his plan and is submitting a
tioned are back in school two
request to the federal government
months later.
to implement it. "The Democrats
New Covenant'
Still, to some who work with
are crazy," Thompson says. "They
Milwaukee's poor, those numbers
should be joining me I'm not
As he moves through the presi-
beating up on people; I'm encour-
dential race, Clinton is portraying
represent hundreds of young peo-
these ideas as the basis for an even
ple in classes who might otherwise
aging them.'
more fundamental renegotia-
be on the street. "It's working, and
Some aspects of the personal
tion-a "new covenant" between
have to tell you, I did not want to
responsibility agenda-such as
do. this, I went in kicking and
Thompson's Bridefare plan-are
government and the public.
screaming," says June Martin Per-
certain to perpetuate conflict be-
"My experience as governor just
tween liberals and conservatives.
brings me up against the limits of
ry, who runs a Milwaukee social
But other elements may allow a
politics all the time, as we spend
service agency that has counseled
new consensus for attacking do-
more and more money to fix bro-
families sanctioned under Learn-
ken lives that should have been
fare. "But it's helped us help a lot
mestic problems built on balancing
of parents get their kids back into
opportunity with responsibility,
kept whole," he says. "I don't think
school or into the proper school."
argues Will Marshall, president of
there is a program for every prob-
lem. You can have all the govern-
the Progressive Policy Institute, a
ment initiatives in the world-and
think tank associated with centrist
Plan Still Popular
I think I know what needs t be
Democrats.
That search for a new social
they have to operate
Even Learnfare opponents con-
contract-in which government
within a receptive culture where
cede that questions about the pro-
tries to expand opportunities and
everybody is willing to assume
gram's effectiveness have not
then holds individuals responsible
some responsibility for the future."
dented its standing with the public.
Like many elements of the emerg-
for seizing them-is explicit in
ing personal responsibility agenda,
Clinton's program. Clinton, for ex-
officeholders in both parties say it
ample, has argued that govern-
ment should provide college loans
enjoys strong support, particularly
to all who need them-and then
among middle-class voters.
That is not surprising. When
allow the money to be repaid with
Democratic pollster Mark Mellman
a few years of national service as a
surveyed Americans on family val-
teacher, police officer, or health
care worker.
ues in 1989, he found "the single
In the same spirit, the Arkansas
most widely shared value in this
law that will revoke driver's li-
country is that people ought to be
responsible for their own actions."
But, Mellman cautions, if pressed
too far, these efforts could easily
strike the public as heavy-handed
meddling in private affairs.
In Wisconsin, for example, even
some Learnfare proponents are
uneasy with the follow-up Paren-
tal and Family Responsibility Initi-
ative-dubbed "Bridefare" by crit-
ics-Thompson proposed earlier
this year.
Under that plan, the state would
provide teen-age welfare recipi-
ents with financial incentives to
marry-and move to discourage
women on welfare from bearing
additional out-of-wedlock children
by providing only half the usual
benefit for a second child, and no
money for any additional children.
The Sacramento Bee Final
Monday, November 18, 1991 B:
The struggle to govern
W
ASHINGTON - When
$264 billion."
President Bush recently
COMMENTARY
No wonder governors and legis-
visited his summer
By David Broder
latures are in political trouble. And
home in Kennebunkport, Maine,
no wonder they turn in anger to-
he lamented the devastation an At-
ward Washington, where, incredi-
lantic storm had wreaked on his
talking about imposing a three-
bly enough, the federal govern-
property and his neighbors.
year waiting period before immi-
ment this year will add more to its
Had he returned four days later,
grants to California can collect any
debt than all 50 states are raising
he could have heard of the terrible
medical or income assistance.
and spending for all their pro-
damage wrought by the unrelent-
Again, this comes just months after
grams.
ing recession that has struck the
the governor and Legislature filled
This is a crisis in the federal sys-
state he knows so well. "I see it ev-
a $14 billion budget gap by a pain-
tem, where the failure of the na-
ery day," said one Mainer, "in the
ful. combination of tax hikes and
tional government's policies for
faces of friends and neighbors,
service cuts.
sustaining healthy economic
whether it is the fear of a business-
Raymond Scheppach, executive
growth is crippling the capacity of
man who has never faced unem-
director of the National Governors
state and local governments to
ployment before, the millworker
meet their responsibilities - in-
resigned to the fate suffered by co-
cluding the many mandates passed
workers or the hopelessness of
down from Washington.
those who continue their fruitless
The most
The future for state and local of-
search for a job."
This was not Bush's least-loved
ficials could be worse, because the
Mainer, Senate Majority Leader
underreported
money they spend is increasingly
George Mitchell, speaking to some
going to the very people that
partisan Democratic crowd. It was
story of this
middle-class taxpayers are loath to
Maine's Republican governor and
support - prisoners and -welfare
loyal Bush supporter, John R.
autumn is that state
recipients.
"Jock" McKernan Jr., explaining
on Nov. 6 why he was proposing
and local
T
HE LATEST state expendi-
drastic cutbacks in government
ture report, compiled by
services - the layoff of one-fifth of
governments are
the National Association of
state employees, a $50 million cut
State Budget Officers, showed
in aid to localities, elimination of
running out of
double-digit spending increases in
the general assistance welfare pro-
three-fourths of the states for cor-
gram and abolition of 35 state
money, as the
rections and Medicaid - keeping
agencies, including the Office of
prisoners out of the way and pay-
Volunteerism that coordinates
recession saps their
ing medical bills for the poor:
Maine's version of Bush's favorite
Those fastest-growing elements
"Thousand Points of Light" pro-
revenues and drives
of state spending are squeezing
gram.
out programs the middle class re-
All this in a desperate effort to
close a budget shortfall that has
up the mandated
ally values. Brian Roherty, execu-
tive director of the budget officers'
emerged just since July, when
costs of social
association, pointed out that for all
McKernan furloughed all state
the rhetoric about improving
employees for half the month in
schools, the share of state spend-
order to force through what he
programs.
ing going to elementary and sec-
then hoped would be a solution.
ondary schools has sunk to its low-
The only consolation the gover-
est level in five years.
nor could offer his beleaguered
And, Roherty said, "higher edu-
constituents is that similarly pain-
Association, says that almost one-
cation costs are being shifted to tu-
ful scenes are being enacted
third of the states are reworking
ition," which is why concern over
across the country from New Eng-
budgets "they put to bed only a few
the affordability of college is mov-
land to California.
months ago." At a recent briefing,
ing up the list of problems the pub-
Scheppach offered a succinct sum-
lic says cry out for attention.
H
E IS RIGHT. The most
mary of what this recession has
What we are witnessing is a
underreported story of
done to state efforts to meet bal-
double whammy. The failure of
this autumn is that state
anced-budget requirements.
national economic policies is forc-'
and local governments are run-
"In 1989-90," he said, "when
ing states to jettison programs and
ning out of money, as the reces-
growth began to slow, governors
services - or raise taxes again,
sion saps their revenues and
tried to maintain services. So they
which few are willing to do during
drives up the mandated costs of
raised taxes about $10 billion.
a recession. And within the
social programs.
Then, because the economy didn't
strained budgets, an ever-smaller
In California, the shortfall in the
respond, they had to cut $7 billion
share can be spent on the pro-
current budget looks like $2 billion
from their planned 1991 spending.
grams that most directly benefit
to $3 billion. Gov. Wilson, another
"Now, they have gone back and
the people who pay these taxes.
Republican and Bush ally, has al-
raised another $15 billion - the
You don't have to be a rocket
lowed about 30,000 jobs in state
highest amount ever in a single
scientist to see that this spells
agencies to go unfilled and is try-
year. Together, that represents a
nothing but trouble for those
ing to impose a 5 percent pay cut
negative swing of $32 billion in tax
struggling to govern at the state
on those who remain. With wel-
hikes and service cuts in a two-year
and local level.
fare rolls up 12 percent, Wilson is
period, in total state budgets of
Washington Post Writers Group
NATION
Welfare
reform in
Maryland
State's plan requires
recipients to perform
Washington Post
BALTIMORE - Maryland offi-
cials, staggered by soaring welfare
costs announced an innovative plan
this week that would give full public
assistance benefits only to recipients
who gèt preventive health care, keep
children in school and pay their rent.
Under the plan, which requires
federal approval, benefits provided
The Sacramento Bee Final Friday, November 29,
by the mainline welfare program, Aid
to Families with Dependent Chil-
dren, would be reduced 30 percent as
of July, 1. Welfare clients could then
get-the money back by displaying
what Secretary of Human Resources
1991
Carolyn W. Colvin called responsible
behavior.
Some other states, notably
Wisconsin and Ohio, have adjusted
state programs to tie AFDC grants to
school attendance, but welfare advo-
cates said Tuesday that Maryland's
proposal appears to seek the most
fundamental changes by attacking
problems of health care costs, educa-
tion and housing all at once.
"Doing business as usual has not
helped our families and children,"
Colvin, the driving force behind the
new approach, said during a news
conference here Tuesday. "AFDC
should'be a temporary program. And
at some point we should be expecting
that they will move toward self-suffi-
ciericy.)
, However, some advocates for the
door,expressed grave reservations
about the plan, saying that many of
Maryland's 215,000 AFDC. clients
will not be able to meet the new re-
quirements and others simply will
not. Either way, the result will be
smaller monthly checks.
With Gov. William Donald Schae-
fer nodding approval, Colvin said
that restructuring some welfare pro-
grams and eliminating others would
free $22.1 million next year that
could be redirected to other services.
AFDC alone is expected to cost near-
ly $350'million next year.
A family of three now gets $406 a
month in benefits, that amount
will arop to $377 on Sunday because
the last round of state spending
cuts. Under Colvin's plan, which will
need the approval of the Department
of Health and Human Services, the
basic grant would drop to $264. Re-
cipients could then recover the mon-
ey+ up to the basic level by proving
their children are getting health care
and schooling and by keeping up
with their rent.
The rhetoric is catchy, but the re-
ality is likely to be unconscionable,"
said Catherine Born, a professor in
the University of Maryland's School
of Social Work. "Could you raise
(two children) on $264 a month?"
Schaefer and Colvin said their in-
téntion is not to save money or hurt
welfare recipients.
"We're saying to welfare recipients
that we'll help, but they've got to
keep kids in school and take preven-
tive health measures," Schaefer said.
12 NEWS / WEDNESDAY, NOVEMBER 27, 1991 / DAILY NEWS
Daily News
ESTABLISHED 1911
COOKE MEDIA GROUP INC
Jack Kent Cooke
Chairman of the Board
Robert W. Burdick
David J. Auger
Editor
Publisher
Jane Amari
Bob McCray
Managing Editor
Advertising Director
Robert W. Lund
Thomas F. Pounds
Deputy Managing Editor
Circulation Director
Thomas S. Gray
John Webb
Editorial Pages Editor
Production Director
Welfare wisdom
It's good to see politicians
return to school within three months
of having babies, or else lose 45 per-
(including one who wants to
cent of their AFDC grants.
be president) demand
Welfare-rights activists oppose
responsible behavior in return
plans like Learnfare, charging that
for government aid.
such conditions on aid penalize inno-
cent children. But those taking a long
Maybe it's just the effect of tight
view, and seeing the lifelong cost of
government budgets, but more and
not earning a high school diploma, un-
more politicians seem to be talking
derstand that innocent children can be
sensibly about welfare these days.
penalized far more when their parents
They are actually treating public aid as
fail to get the education they need to
a two-way deal, in which the govern-
hold down decent jobs.
ment has a right to expect something
No value is more American (or at
in return from welfare recipients.
least should be) than the belief that
Arkansas Gov. Bill Clinton, a Dem-
people must take responsibility for
ocratic presidential hopeful, sounds
their own well-being. Welfare can
especially promising with a campaign
weaken that sense of responsibility by
theme he calls The New Covenant.
allowing many parents, who should be
"The New Covenant will say to peo-
supporting their own children by their
ple on welfare: We're going to provide
own efforts, live indefinitely without
the training and education and health
having to carry out that basic adult re-
care you need, but if you can work,
sponsibility. That hardly teaches the
you've got to go to work, because you
children of these people how to stand
can no longer stay on welfare forever,"
on their own two feet.
Clinton said in a Georgetown Univer-
By requiring something back from
sity address last month. Clinton has
adult recipients - even something as
proposed requiring that welfare recipi-
simple as making sure their kids go to
ents be forced to work if, after two
school - some in government are
years, they are still receiving aid.
rightly demanding that the money
Under Clinton's administration, the
spent on AFDC work not just to keep
state of Arkansas also has been wor-
people fed but to push them into tak-
king aggressively to make deadbeat
ing more positive control over their
parents pay child support. Last year, a
lives.
law was passed in that state enabling
It is especially good to see a signifi-
authorities to notify credit agencies
cant national figure in the Democratic
about parents who owe more than
Party try not just to appeal to the mid-
$1,000 in child support (Los Angeles
dle class but also to instill a traditional
County now reports similar cases to
middle-class virtue - self-sufficiency
credit agencies as well).
- in the welfare-dependent poor.
In Wisconsin, GOP Gov. Tommy
Clinton, like Wisconsin's Thomp-
Thompson has introduced a program
son, also has lessons to teach Califor-
called Learnfare to the Aid to Families
nia as it faces a new budget crisis and
with Dependent Children program.
boom in its welfare population. Gov:
Enacted in 1 987, Learnfare reduces by
Pete Wilson ought to try to adopt the
about 15 percent the benefits of AFDC
best of such programs for California.
families in which children age 13 to 18
Who knows? In these tough economic
habitually skip school. Learnfare also
times, even the Legislature might con-
requires teen-age AFDC recipients to
sider voting for real welfare reforms.
of those things. What they have to be, obviously, is
by moving to alternative fuels, we will have signifi-
"Whether you
on the alert to try to get children the sort of help
cantly improved air quality and still be confronted
that they need, whether it's mental health counsel-
with horrendous congestion unless we take steps to
talk about
ing or physical examinations.
alleviate that. The people in this state at the last
Sacramento or
But basically, all these things we're talking
election approved $3 billion worth of rail-bond is-
about depend upon our having the sort of econom-
sues. In the primary in June 1990 they approved es-
Washington,
ic base, the capability to maintain an employment
sentially a doubling of the gas tax. That will pro-
too often the
base that will keep pace with this population. And
duce enough funding for highway construction. If
California is not an island. We are in competition
that hadn't occurred, we would have been abso-
people who
with other states, with other nations-and the fact
lutely strangled by our own traffic.
are engaged in
that we offer vast markets in no way makes us irre-
Is there a limited carrying capacity? That's
sistible to business. It is possible to exploit Califor-
something people have been arguing for years. I
[political]
nia's markets while being headquartered in Arizo-
think the answer depends on the extent to which
competition
na or Nevada or, for that matter, North Carolina.
you are willing to anticipate and accommodate
We have to be very concerned that we maintain our
growth. The quality of life doesn't depend exclu-
forget that it is
competitiveness.
sively upon numbers. You can have a miserable
- for the
quality of life in a small village. You can have an in-
Q. What will be the impact of the great new ethnic
finitely better quality of life in a large city. It de-
purpose of
mix?
pends on whether or not the necessities and ameni-
benefiting the
A. The changing demographics of California are
ties have been provided, and that requires first and
reflective of a growth that is very much a mixed
foremost that you anticipate and accommodate,
public and
blessing. At the same time that we are renewed and
and that you've got the economic base.
not the
enriched and refreshed by the energy and creativity
The U.S. Constitution guarantees the right of
of a new generation of immigrants, they are a
free travel. The courts have gone much further and
politicians.
mixed blessing in the sense that our overall popula-
have inferred from that the right to reside. Indeed,
tion is becoming much younger. As I mentioned,
in a number of cases they have rejected efforts-by
we have an exodus from the state of those who are
Connecticut and Hawaii and others-to deny to
in their productive years and a great increase in the
new residents the welfare benefits that are paid to
growth of the child population. And as a result of
established residents. I happen to think those cases
ith
that, there's a great increase of consumers of ex-
are wrong. It seems to me that at the very least
ile
pensive governmental services-of education, of
there should be a period in which new residents do
health care and welfare. So that is what is reflec-
not receive the benefits that the state provides.
tive of the changing demographics. More than any-
People have talked about a three-year waiting peri-
thing else, it means that the state is growing
od. Otherwise, you have a situation in which you
younger.
are risking the health of your economic base.
On the good side, we believe that not only our
geography but also this diversity of our population
Q. Looking at all this, do you ever wonder whether
puts us in a particularly advantageous position to
California is ungovernable?
exploit what we think is going to be a transpacific
A. Being Governor of any state, and certainly a
explosion. We think there is going to be a tremen-
state with California's problems, is fraught with
dous increase in the importance of transpacific
difficulty. Representing California in the Senate
trade, and, indeed, it has already begun. Today a
[which Wilson did from 1983 to 1991] seems like a
greater volume of our trade crosses the Pacific
cloistered existence, even if being a Senator from
than the Atlantic.
California is very different from being a Senator
from a small, relatively homogeneous state. The
Q. Can the state's political institutions keep up with
difference, still, is that this is a much better
the challenges raised by the rapid rate of change in all
job-for all its slings and arrows. It's far more
these areas?
demanding, but it's far more satisfying, far
A. Part of it is the rapid rate of change, and part of
more interesting.
it is just the inability of the legislature to be as re-
sponsive as it should be. We don't have affordable
Q. Do you see your kind of politics of the center hav-
car insurance because the trial lawyers' lobby has
ing a chance at the national level? Or is the power of
been successful in killing it. We don't have
the extremes still too great?
[enough] reform of workers' compensation be-
A. I don't think that the power of the extremes is
cause the applicants' attorneys will be successful in
too great. By and large, don't delude myself that
forestalling any reform beyond what we achieved
the vast majority of the American people are think-
this year.
ing about politics. In fact, they prefer not to think
about it. They want services delivered, and they
Q. It is being said more and more that there is a sheer
really don't much care how. But they are inherently
physical limit to the number of people who can live
schizophrenic: they want the services, but they
here because of the environmental constraints. As-
don't want the tax to pay for these services.
suming you could take care of all the governmental
Still, there is a basic difference between the
and financial problems you've described, the ques-
parties, and that's healthy because it produces-
tion remains: Is this a state that can support not only
competition that is absent in a number of other
30 million but maybe 40 million or 50 million people?
countries. The problem, frankly, is that whether
A. It's true that in existing urban centers you have a
you talk about Sacramento or Washington, too of-
problem of congestion that I think is far more seri-
ten the people who are engaged in the competition
ous to manage than even the quality of the air that
forget that it is for the purpose of benefiting the
automobile traffic produces. I am convinced that
public and not the politicians.
TIME, NOVEMBER 18, 1991
63
INTERVIEW
BYHENRY MULLER AND JOHN F. STACKS
THERE Is LIMIT To WHAT WE CAN
ABSORB"
A. Since 1985 the state's popula-
tion increased 18%. School enroll-
ments increased 23%. Welfare, in-
creased 31 1/2%, and Medi-Cal,
which is what we call our Medicaid,
increased 49%. Delaware moves to
this state annually.
I've been to two National Gov-
ernors' Association meetings. The
theme of both was that federal
mandates, especially health care,
are going to bankrupt the states.
Look at an ironic situation: one
federal statute says illegal workers
are ineligible for public assistance,
but another federal statute says
that their children shall be enrolled
in the state public school system.
That's why we're adding about a
quarter-million kids a year-from
all of it, from the birthrate, from
the migration from other states.
Q. Is there anything you can do to
slow the population inflow?
A. We will have to minimize the
magnetic effect of the generosity of
this state. When I make this com-
ment, people immediately will say,
"You're anti-poor people." I'll be
Governor
Q. Is the California Dream threat-
Citizens of the future:
accused of racism. The fact of the
Wilson with Sacramento
ened by all the problems the state
PETE WILSON
matter is, Californians are having
faces?
elementary school students
to pay a disproportionate share of
warns that
A. The state has got to achieve an equilibrium.
the national burden for supporting the poor. What
We're in a period when we have taken on a number
we are going to have to do, 1 think, is. either make
California is
of burdens, some natural, some of our own making.
an internal decision to be less generous or, better,
confronting a
This is a rich state by any number of indexes. But as
ask the Federal Government-notably the Con-
with a rich country, there are practical limits to
gress-to give some relief on these mandates be-
painful choice:
what you can do. There are also political limits to
cause their good intentions are threatening the sta-
be less
what people are willing to assume in the way of
bility even of rich states like California. There is a
burdens.
limit to what we can absorb.
generous to
California is going through a period of change.
Internally, the people of this state are going to
newcomers or
Growth is not new to us. David Gardner, the presi-
have to decide what their priorities are. They've in-
dent of the University of California, was asked to
dicated that the most urgent from their standpoint
be buried by
give a one-sentence definition of California, and he
is education. And I don't disagree with that. Edu-
relentless
said, "They found gold here in '49, and they
cation needs reform so that we can have a compe-
haven't stopped coming ever since."
tent and productive work force. That's true here;
growth
But the growth is relentless. We're experienc-
that's true nationwide.
ing something that's very troubling to me, and that
We have to consider the kind of kids that are
is an outflow of those who are the producers-and
going into the classroom. Are they prepared to
a tremendous increase in the number of consumers
learn? Are they healthy enough to concentrate?
of services, particularly children. When I say that
Which is why we have laid such heavy emphasis on
there has to be an equilibrium, that's really what
a preventive-as opposed to remedial-approach.
I'm talking about. There has to be an ability of the
One program in particular is designed to ready
state to grow economically to keep pace with the
children for the classroom. Today, as much as I
burdens placed on it.
may criticize the quality of our education, I have
enormous sympathy for the classroom teacher who
Q. The problem comes down to California's rapid
is asked to be substitute parent, social worker and,
population growth, doesn't it?
in some cases, cop. They shouldn't have to be any
54
TIME, NOVEMBER 18, 1991
San Francisco Chronicle
*
CALIFORNIA
WEDNESDAY, NOVEMBER 27, 1991
California's Income Tax System
Growing Even More Progressive
By Vlae Kershner
Chronicle Sacramento Bureau
CALIFORNIA TAX RATES FOR TAXABLE YEAR 1991
Sacramento
California's income tax sys-
Schedule 1: Single Taxpayers
tem, already one of the most pro-
IF the taxable
gressive in the nation, will rely
income is
Computed tax is
even more heavily on upper-in-
come people in April, according to
of amount
estimates released yesterday.
Over
But not over
over
$0
$4,394
$0.00
Plus
1.0%
$0
Taxpayers earning more than
$100,000, who file just 4 percent of
$4,394
$10,414
$43.94
Plus
2.0%
$4,394
the state's 14 million tax returns,
will pay 55.7 percent of the $22.3
$10,414
$16,435
$164.34
Plus
4.0%
$10,414
billion in 1991 state income taxes
$16,435
$22,816
$405.18
Plus
6.0%
$16,435
due April 15, 1992. That's up from
$22,816
$28,835
$788.04
Plus
8.0%
$22,816
47 percent on 1990 returns, the
Franchise Tax Board said.
$28,835
$100,000
$1,269.56
Plus
9.3%
$28,835
"It is a very progressive sys-
$100,000
$200,000
$7,887.91
Plus
10.0%
$100,000
tem," said tax board spokesman
$200,000
And over
$17,887.91
Plus
11.0%
Jim Reber. "An interesting statis-
$200,000
tic is that over the course of the
last decade, the top 1 pèrcent of
Schedule 2: Taxpayers Filing Jointly
incomes paid 40 percent of the
tax."
If the taxable
income is
Computed tax is
Most Californians whose in-
come was unchanged or increased
of amount
only slightly will pay lower income
Over
But not over
over
taxes, and those who kept pace
$0
$8,788
$0.00
Plus
1.0%
$0
with the inflation rate (4.3 percent)
$8,788
$20,828
$87.88
Plus
2.0%
$8,788
will pay the same or slightly high-
er taxes, officials said as they pre-
$20,828
$32,870
$328.68
Plus
4.0%
$20,828
sented the 1991 tax brackets.
$32,870
$45,632
$810.36
Plus
6.0%
$32,870
The main reason for the
$45,632
$57,670
$1,576.08
Plus
8.0%
$45,632
change is that Governor Wilson
and the Legislature raised the rate
$57,670
$200,000
$2,539.12
Plus
9.3%
$57,670
for top tax brackets during the
summer. Lawmakers initially
$200,000
$400,000
$15,775.81
Plus
10.0%
$200,000
were reluctant to raise income tax-
$400,000
And over
$35,775.81
Plus
11.0%
$400,000
es, but changed their minds after a
Source: Franchise Tax Board
poll showed that greater taxing of
the wealthy was the most popular
CHRONICLE GRAPHIC
solution to the state's budget crisis.
taxpayers, according to a study re-
people with the same incomes in
For 1991, single taxpayers will
leased in April by Citizens for Tax
both years will pay less in taxes.
pay a 10 percent marginal tax rate
Justice, a public interest group.
For example, a married couple
on income over $100,000 and pay
with two children who earned
The study found that lower-in-
an 11 percent rate on income be-
$25,000 in: both 1990 and 1991
come people were taxed the most
yond $200,000. For couples filing
would pay $82 in income taxes in
heavily overall, however, even in
joint returns, the higher brackets
1991, a reduction of $29 from 1990
California, because the impact of
begin at $200,000 and $400,000. The
levels. A two-child couple who
sales taxes hits disproportionately
top rate had been 9.3 percent from
earned $100,000 each year would
hard on those who spend every
1987 to 1990.
pay $5,815 in 1991, down $142 from
dollar they earn.
California, Delaware, Maine
1990.
and Vermont are the only states in
The state's tax brackets have
Standard deductions and per-
which high-income people pay a
been raised 4.3 percent to keep
sonal and dependent. exemptions
greater proportion of their income
pace with the increase in the Cali-
are also being increased to keep
in taxes than do middle-income
fornia Consumer Price Index, so
pace with inflation.
percent of the total welfare cases
are people who are officially un-
employed, analysts said. Most of
the remaining welfare recipients
Besides these factors, which
do not have substantial employ-
have, been recognized for several
ment histories.
From Page 1
years, Illig said a new trend has
"The problem with the rest of
emerged in which "citizen chil-
the state's skyrocketing welfare
caseload, most analysts have noted
the caseload is that it seems to go
dren" of newly legalized immi-
the same basic long- and short-
up no matter what happens with
grants are getting welfare assis-
tance.
term causes:
the economy," said Dave Illig of
the state Legislative Analysts Of-
fice.
The parents of these children
Immigration has continued
were illegal immigrants who be-
at very high levels and has includ-
came legalized under the 1986 im-
ed large numbers of people from
Immigrant Groups
migration reform law. The parents
two groups - Latinos and refu-
gees, primarily from Southeast
Illig was one of the primary
are barred from-getting welfare
Asia - who have relatively high
authors of a report released earlier
grants until next year, but their
welfare dependency rates.
this year that outlined the major
said. children can get some money, Illig
causes for the state's increased
Citizen children of illegal
welfare caseload.
"Sixty to eighty percent of the
and newly legalized immigrants
are pushing up caseloads rapidly
In the report, it was noted that
growth in caseloads in Los Angeles
in urban counties.
two immigrant groups, Latinos
County appears to be the result of
and refugees, "are among the pop-
this phenomenon," he said.
Continuing high teenage
ulation groups whose welfare de-
birthrates and births to unwed
pendency rate is currently sub-
The increasing birthrates
mothers.
stantially higher than the depen-
among both teenage girls and un-
Fewer people are covered by
dency rate of the general popula-
wed adult women is also signifi-
tion.
cantly boosting California's wel-
unemployment benefits, and those
fare rates. The birthrate for teen-
benefits have been running out
The report said that Latino
agers was up 13 percent between
much faster during this recession
women have an AFDC dependen-
1980 and 1988, while the birthrate
than in past downturns.
cy rate that is "23 percent higher
for unwed adult women was up 83
than the rate for all other women."
Since January, more than
percent over the same period.
340,000 Californians have exhaus-
It also noted that the Depart-
"These birthrates may be lev-
ted their unemployment benefits
ment of Social Services estimated
eling off, but I have seen no evi-
as a result of cuts made during
that "nearly half of the refugees in
dence that they have dropped," II-
Ronald Reagan's presidency that
the state are dependent on public
lig said.
effectively eliminated automatic
assistance."
benefit extensions.
"People are exhausting their
benefits a lot faster than in other
WELFARE AND THE RECESSION
recessions, and they have to sur-
vive somehow while they look for
Economic downturns typically cause increases in the welfare rolls, but
work. Welfare is their last al-
California is currently experiencing a skyrocketing caseload increase
ternative," said Isaac Shapiro, a re-
that is far beyond what has happened in other recessions.
searcher at the Center on Budget
and Policy Priorities.
Annual change in Californians
Periods of
receiving Aid to Families with
recession
Extension of Benefits
Dependent Children (fiscal year)
12.0%
After more than four months
12.2%*
10.0
of haggling with Congress and af-
8.0
ter two vetoes, President Bush last
weekend signed a bill extending
6.0
jobless benefits an additional 13
4.0
weeks.
2.0
That will help large numbers of
0
unemployed Californians who
-2.0
qualify for benefits, but Shapiro
-4.0
noted that far fewer jobless people
-6.0
qualify now. Studies have shown
that nationwide, only about 40 per-
-8.0
cent of today's unemployed people
72
74
'76
78
'80
'82
'84
'86
'88
'90
Sept.
are covered by unemployment in-
'91
surance because of program cuts,
1972 AFDC recipients:
1991 AFDC recipients:
1.52 million
2.27 million
he said. In 1975, more than 75 per-
cent of jobless people were cov-
* Compared to September 1990
ered.
California unemployment rate (calendar year)
"It really isn't surprising that
10.0%
when you have an unemployment
system that isn't working so well,
7.7%
8.0
you are going to have people turn-
ing to AFDC," Shapiro said.
6.0
The extension of unemploy-
4.0
ment benefits probably will result
in reductions in the California wel-
2.0
fare caseload, but only about 20
0
72
74
'76
78
'80
'82
'84
'86
'88
'90
Sept.
'91**
Compared to September 1990
Sources: California Dept. of Social Services, California Economic Development Dept.
CHRONICLE GRAPHIC
STATE WELFARE ROLLS
San Francisco Chronicle
TUESDAY, NOVEMBER 19, 1991
**
JOBLESS BENEFITS RUN SHORT
State's Welfare Rolls Growing at Record Rate
By Ramon G. McLeod
over the year before and the
Urban Institute. "People are us-
welfare cases, according to a re-
Chronicle Staff Writer
highest rise since the state began
ing these programs at levels that
port issued earlier this month by
keeping comparable records in
Record numbers of Califor-
are much, much higher than
the state Department of Social
1971.
we've seen at similar levels of
Services.
nians are turning to the welfare
system for help in this recession,
Recessions typically cause in-
unemployment in the past."
The Wilson adminstration
and they are going on the dole
creases in the number of welfare
For example, during the 1981-
had budgeted for a welfare
much faster than in previous
recipients, but California's sky-
83 recession, unemployment
growth rate of around 8 percent,
downturns.
rocketing caseload is well beyond
rates hit 9.9 percent. The number
and the unexpected increase has
what has happened in other lean
Recent figures show that by
periods, analysts say.
of people on welfare, however,
been blamed as part of the rea-
June 30, the end of the 1991 fiscal
never increased by more than 9.8
son for an expected $3 billion
year, 2 million Californians were
"I think a lot of people have
percent.
state budget deficit in fiscal 1991-
getting Aid to Families with De-
been surprised by how much
92.
Current unemployment rates
pendent Children (AFDC) funds,
greater the participation has
are below 8 percent, but as of
Although many complex ex-
the primary welfare grants for
been in food stamps and wel-
September, the state was on
planations have been offered for
families - a 10 percent increase
fare," said Isabel Sawhill of the
track for a 12 percent increase in
Back Page Col. 5
The Sacramento Bee Final
Tuesday, November 19, 1991
Even if economic prosperity re-
turns! to California, the study con-
cludes, tax revenues will lag behind
demand for education, health care
and other pricey public services, and
by the end of the century California's
baseline general fund budget - the
current level of services, adjusted for
inflation and caseload growth -
could grow from the current $43 bil-
lion to $105 billion a year, but reve-
nues would cover only $85 billion of
that amount, leaving a $20 billion an-
nual deficit.
The Department of Finance study
says that because of high immigra-
tion and birthrates, California's de-
mography is unique. There is explo-
DAN.WALTERS
sive growth in the under-18
population while older working-age
Californians are flowing out of Cali-
Budget crisis
fornia to other, more serene social
environments. The number of tax-
payers is growing substantially more
now perpetual
slowly than the number of Califor-
nians termed "receivers," who are
dependent upon public programs for
support. The latter category includes
T
here is a fundamental conflict
lower- and higher-education stu-
between political decision-
dents, welfare recipients, the medi-
making, which is a short-
vindigent and prison inmates
range, almost instantaneous process,
and social change, which occurs
1980, the study found, there
more slowly.
were 1.18 taxpayers per receiver,
This cyclical differential means
and this ratio remained constant
that more often than not politicians
during the ensuing decade. The num-
arevattempting to catch up with de-
ber is projected to dip below 1 by
mographic trends that have already
1995 and decline sharply to 0.8 tax-
occurred and only: rarely attempt to
payer per receiver by the end of the
leap ahead to recognize, and thus
decade.
make policy for, change that, has not:
"In other words,"; the study con+
yet manifested itself in some trau-
cludes, "there will be relatively fewer
matic fashion.
working-age: Californians to: support
A case in point is California's stub-
growing populations of youth and the
born fiscal crisis,
elderly.
When Gov. Wilson and the Legis-
Bits and pieces of this startlingly
lature confronted a huge gap in the
gloomy view of California's fiscal
current year's state budget - eventu-
prespects have been working their
ally pegged at $14 billion-plus - they
way into Wilson's recent speeches.
assumed that by freezing or reducing
He has, for example, complained
some spending and increasing some
aloud about federal immigration poli-
taxes, they would not only close the
cies and suggested that newcomers
current hole, but bring ongoing state
to:California not be allowed to claim
revenues and expenditures into
welfare. benefits until they' lived
rough balance.
here for three years.
It turns out that the economic pro-
Regardless of how the current
jections upon which this year's budg-
budget agonies are resolved, howev-
et agreement was based were too
er,i the longer-range trends will re-
rosy. The recession is deeper and
turn repeatedly to haunt Wilson and
stronger than political leaders had
other policy-makers. Raising taxes
feared and there are current esti-
would compound the growing gap by
mates that even with the new taxes
discouraging investment and propel-
and spending cuts, the 1991-92 budg-
ling individual taxpayers to leave for
et is.$3 billion-plus out of balance.
more hospitable climes. But slashing
services deeply would have over-
W
ilson, having taken a cal-
tones of class rivalry. The only cer-
culated political gamble
tainty is that the long-term conflict is
on raising taxes during his.
real and absent any bold policy initia-
first year, has been hammered by ad-
tives, it will make this year's budget
verse public reaction and is not about
crisis seem like kindergarten squab-
to compound his problems by raising
bling.
taxes a second time. Both he and the
Democratic leaders of the Legisla-
DAN WALTERS' column appears daily ex-
cept Saturday. Write him at P.O. Box 15779,
ture are looking only at spending
Sacramento, 95852 or call (916) 321-1195.
cuts to close the new gap.
Even as they look for some solu-
tion to this year's budget problem,
however, they must look ahead to an-
other problem for 1992-93, especially
if the economy remains soft. And in
the even longer term, California's
rapidly changing economy - espe-
cially the sharp decline in manufac-
turing - and its accelerating demo-
graphic evolution could create a
perpétual fiscal crisis, according to a
new, state) Department of Finance
study.
NOVEMBER 19, 1991 / DAILY NEWS
Daily News
ESTABLISHED 1911
COOKE MEDIA GROUP INC
Jack Kent Cooke
Chairman of the Board
Robert W. Burdick
Editor
David J. Auger
Publisher
Jane Amari
Bob McCray
Managing Editor
Advertising Director.
Robert W. Lund
Thomas F. Pounds
Deputy Managing Editor
Circulation Director
Thomas S. Gray
John Webb
Editorial Pages Editor
Production Director
Serving more with less
All those slow-growthers who com-
a huge and growing burden for em-
plained about the California boom
ployers.
should have been more careful about,
But the state's problem of a growing
what they wished for. The boom is
dependent population ultimately will:
gone; jobs are leaving, and Americans
require much more fundamental re-
seem to have lost enthusiasm for Cali-
forms, including reforms in the way
fornia as a place to do business. But
the state delivers basic services such as
that hasn't ended the influx of un-
public education. With an expected
skilled workers into the state or the
rise in school enrollment of 250,000
birth of children here.
students per year, California must
Last week, De-
start finding ways
partment of Fi-
to make the public-
nance Director
TAXPAYERS AND TAX RECEIVERS
school: dollar go
Tom Hayes re-
further.
leased a report
individuals paying state Income tax
Receivers
One way may be
showing in disturb-
20,000
to expand the sup-
ing detail how the
(in thousands)
18,000
ply of educational
state was losing
options through
older taxpayers
$16,000
-
privatization. One
the relatively afflu-
14,000
group, Parents for
ent people who pay
12,000
Educational
so much of the cost
10,000
Choice, is prepar-
of serving the
8,000
ing an initiative
needy - while ex-
that would provide
periencing a surge
6,000
parents who wish
in the state's popu-
4,000
to send a child to
lation of the very
2,000
a private school
young and depen-
with half the mon-
dent. The study
1980
1990
1995
2000
ey that is being
noted: "Califor-
Receivers include welfare recipients, public school and higher
spent by the state
nia's major tax re-
education students, prisoners and non-welfare Medi-Cal cases,
to fund that child's
ceiver groups -
SOURCE: California Department of Finance
public school edu-
students, welfare
Daily News cation now. In the
recipients, prison-
long run, such a
ers and Medi-Cal eligibles - are grow-
system could save the state hundreds
ing more quickly than its taxpayer
of millions of dollars and relieve
group" (see chart).
school overcrowding.
Through the 1980s, the ratio of tax-
One thing is certain: If state politi-
payers per public school student has
been 2.62 to 1. In 1990, the ratio was
cians do not find more creative ways
2.63 to 1, but by 2000 it is expected to
of dealing with the state's changing de--
fall to 2.02 to 1. In 1980, the ratio of
mographics, government in California
taxpayers to recipients of Aid to Fami-
will become utterly unsupportable.
lies with Dependent Children was 6.94
Residents must expect annual tax in-
to 1. In 1990, that ratio was 6.21 to 1;
creases, not only to fund growth in
welfare caseloads, but also in school
by 2000, it is expected to plummet to
enrollment.
2.94 to 1.
These numbers ought to scare state
Those who call for higher taxation
politicians into working harder to keep
as the solution should consider this: If
industries in California and to encour-
state leaders can't find more afford-
age local businesses to expand within
able ways to educate and provide for
the state. Clearly, California cannot af-
California's children, those who can
ford to lose any of its taxpaying citi-
afford to escape the state's huge tax
zens. It's clearly time, among other
burden will do so by leaving. Who,
things, to reform the workers' com-
then, will be left to provide for the
pensation system so that it is not such
children?
SAN DIEGO
M.
TRIBUNE
HELEN K. COPLEY, Publisher and Chairman, Editorial Board
NEIL MORGAN, Editor
ROBERT M. WITTY, Deputy Editor
GEORGE W. DISSINGER, Managing Editor
A Copley Newspaper
JAMES O. GOLDSBOROUGH, Editorial Pages
San Diego, California, Tuesday, November 12, 1991
Telephone 299-3131
Page B-6
Editorials
California dreamin' - 1991
Finding hope amid the doom and gloom
Is the dream really over?
perhaps for up to three years.
A new poll in Time Magazine says
It's a gloomy picture. Thirty million
what a lot of us suspected - that Califor-
people have transformed our Shangri-La
nia living isn't what it used to be. Incred-
of clean beaches, tiled houses and or-
ibly, only one out of two Californians be-
chards into a place of crime, pollution,
lieves that California is one of the best
joblessness and homelessness. People
states to live in.
scream about taxes, but school enroll-
One out of two? In the '50s and before,
ments, which take more than 40 percent
you wouldn't have found one out of a
of state revenues, have risen by 23 per-
hundred Californians who didn't think
cent since 1985. If California doesn't edu-
California was heaven on earth. Heaven
cate its new population, the future will
was a stucco bungalow in North Park
be even bleaker.
(for about $7,500), oranges in your back
The leadership has to come from Sac-
yard and a cruise out to La Jolla in the
ramento. Wilson is right to focus atten-
roadster. Jobs were everywhere.
tion on measures, however draconian,
That's why the people came. And they
that tend toward a solution. The libertar-
came and they came, lifting the state's
ian drift of the Deukmejian years did
;population from 10 million in 1950 to 30
nothing to help California cope.
million today, one out of nine Americans,
Limiting welfare payments to new ar-
12 million more than No. 2 New York,
rivals, if it can pass court tests, would be
giving California the sixth-largest econo-
smart policy. Just as the state requires a
my in the world. Even scarier: The five
residency period for higher education
counties around Los Angeles have the
benefits, there would be a residency for
world's 11th-largest economy, larger
welfare Tough, yes, but California with
than Mexico, larger than India.
too few jobs and too many people cannot
Today, the world's sixth- and 11th-larg
afford its past largess. The marketplace
est economies are in recession, and jobs
will play a large role in limiting Califor-
are scarce. Gov. Wilson says the wrong
nia's population expansion, but state pol-
people are coming to the state, that there
icy also has a role to play.
is "an outflow of those who are the pro-
The motor for California's long-term
ducers, and a tremendous increase in the
prosperity will be business. The aircraft,
number of consumers of services, partic-
defense and semiconductor industries
ularly children."
will not play the role they once did, but
Californians are worried. About 8 mil-
California always has been adaptable
lionspeople came here in the '80s, and
By joining with Mexico, orienting our
many of them still haven't found jobs. At
economy toward the Pacific and invest-
7.8 percent, California's unemployment
ing in industries of the future such as
rate is a full point above the national
high tech and tourism, we can help re-
average. Since 1985, state welfare pay
store the state's health.
ments have increased by 31 percent and
The most difficult part of the job lies
Medi-Cal payments by 50 percent.
in the need to balance economic growth
Wilson faced a $14 billion deficit last
against preservation of this state as na-
summer, and program cuts and tax in-
ture intended it. In every vote, in every
creases still haven't closed the deficit -
poll, Californians insist that each be
making more welfare cuts imminent. To
done, that neither economy nor environ-
discourage more arrivals, Wilson wants
ment be sacrificed to the other.
to limit welfare payments to newcomers,
That is the task, now let's do it.
THE WHITE HOUSE
Office of the Press Secretary
(Cleveland, Ohio)
For Immediate Release
May 21, 1992
REMARKS BY THE PRESIDENT
AT BUSH-QUAYLE '92 FUNDRAISING LUNCHEON
Grand Ballroom
Stouffer Tower City Plaza Hotel
Cleveland, Ohio
12:25 P.M. EDT
and thank you for that welcome. George Voinovich gave our
THE PRESIDENT: Thank you all. Please be seated,
administration a lot of credit for these things that he clicked
off today, and he talked about the blast furnace. You should
have seen the letter that he sent to me, blasting us to get the
blast furnace going. (Laughter.) He's a hands-on Governor, just
as he was a hands-on mayor of this great city. And he is one of
our very, very best across the whole country and you all are
awful lucky, in case you didn't know it. (Applause.) And that
goes for Janet, too. (Applause.)
I, too, want to thank the Fairview High School Band
and Virgil Brown; Jim Petro for leading us in the Pledge. May I
single out one who is with me today that some of you know
personally, but who is doing a superb job fighting now to get
some legislation that he and I believe in -- legislation that's
been lingering before the Congress for three years through the
Congress. I'm talking about our able Secretary of HUD Jack Kemp
over here. Jack? (Applause.)
And may I wish Mike DeWine the very, very best. We
need him in the Senate. We've got to get control of the United
States Senate. (Applause.) And also, Art Modell, thank you,
sir. I'll never forget a marvelous event out at Art's house when
I was running for this job, and he's been a good supporter and an
outstanding citizen of Cleveland. And, of course, Tim Timken has
been at my side for a long, long time and I'm very proud of the
job he does on the national level as well as working for the
Bush-Quayle effort here in this state. Bob Taft is with us, the
job for all of you.
Secretary of state, another longtime friend, also doing a superb
Bob Bennett -- when I think back to my days of being
National Chairman, Chairman of the Republican Party, there were
some who just were ornaments. Some didn't hit a lick. And Bob
Bennett is an outstanding, active hands-on Chairman of the
Republican Party in this state: and that's why I believe we will
get control of the State House Representatives. (Applause.)
And may I, too, thank Stan Aronoff and Martha Moore
and single out Bobby Holt, our National Finance Chairman; and
Dick Freeland, our regional Bush-Quayle Finance Chairman. I am
very, very pleased to be here. I will be out of here in time for
you all to go back to work, suit up, and then watch the Cavs and
the Bulls play at 8:00 p.m. tonight. so my priorities are
correct. (Applause.)
Let me start by saying I think we have an awful lot
to be grateful for as a nation. These are troubled times --
times of discontent. It isn't just America if you look around
the world, incidentally. Take a look at Germany. Take a look at
France. Take a look at what was happening in England before
mode. their election. There seems to be a turmoil, an antipolitical
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- 2 -
But I think, as George pointed out, we have a lot to
be grateful for. We have affected, helped affect, worldwide
change. Democracy is on the move. There's turmoil in Eastern
Europe, but it's moving in the right direction. Totalitarianism
is dead. South of our own border you're seeing, through our
Enterprise for the Americas Initiative and through the Brady Plan
you're seeing a whole resurgence of private sector activity and
the democratic march in our own hemisphere.
The main point I would make is that our kids can go
to sleep at night in this country with far less fear of nuclear
war. That is significant change. That is worldwide change. And
we had a hand in bringing it about, everybody that supported the
strong defense of the United States. (Applause.)
so, as we move into this election year we're moving
in there with something we can really be proud of to take to the
American people. The spirit of Desert storm is not dead in this
country. The country came together after we were the ones that
stood up to aggression, formed a coalition, and said to the rest
of the world: One country, a big bully of a country is not going
to take over another. And that has given us the standing around
the world that I think is unprecedented, certainly in recent
times.
Now, what we're trying to do domestically is to take
that move for change and bring it to bear on our problems right
here at home. It's been put in focus by the troubles out in Los
Angeles. we have a program that ties in and fits nicely to
solving the problems in not only Los Angeles, but the problems
that are plaguing our cities. And, indeed, many of the answers
spill over into rural America as well.
What I wanted to do is just point out where we stand
in terms of trying to change things productively here at home.
The first thing I would say is we have to support
our law enforcement people. We do. Our administration does it
in many, many ways. We have a program now that is called "Weed
and Seed" -- weed out the criminals and then seed these
neighborhoods with hope and with opportunity. But we must not
move away and try to explain away those who -- the gang members
and the terrorists in our cities.
I was pleased to see some of Cleveland's Finest out
here, police officers, because I like to be able to tell these
men who are giving themselves for all of us that we back them up
as they go into harm's way, trying to bring order and civility to
the neighborhoods that need it the most. We must support our
police. (Applause.)
You know. I made that comment in the Mt. zion
Baptist Church right in the heart of South Central L.A. And I
felt strongly about it, and I was flanked by 200 pastors from the
various Baptist churches, and the area's churches that were in
the most heavily impacted area. The church came out in
spontaneous applause. The people in the neighborhood know that
they are the ones that are being ravaged by the gangs and the
criminals and the criminal elements.
The next point, though, 1s not just weed, it's not
just law enforcement, law and order: it is also seeding the area
with hope and with opportunity. This program we have, antidrug,
pro-family, pro-investment, 1s a good one. So we start with our
first incentive: fund our Weed and Seed program. The second
one: we've got to rebuild community. And again, I salute Jack
Kemp. He's been out on the firing line for this for the three
years that our administration has been in office.
Enterprise zones. There is an idea whose time has
come. And everyplace Jack and I went in the neighborhood,
MORE
whether it was Hispanic, whether it was the Korean neighborhood,
whether it was in the largely Afro-American neighborhoods, those
community leaders were saying, give us enterprise zones. change to
bring jobs with dignity into the private sector. That idea is
the tax structure so that this place can serve as a magnet
here now, it's on the table right this minute in the congress.
and the Congress ought to pass it, and pass it fast. (Applause.)
And along with it is another concept:
Homeownership. Isn't it far better, isn't it far better for the
dignity and strength of a family to have a person own a home or
have a tenant-managed project than it is to go to some desclate
bricks and mortar that has no heart, no soul, and falls apart
because nobody cares? Homeownership is an idea whose time has
come. And we've challenged the Congress again: Get moving and
give us more to take to the American people in terms of
homeownership. That's the third one.
The fourth one: welfare reform. some say, well,
when you talk about welfare reform, you're injecting race into
the situation. That isn't what we're talking about at all. Did
you know that if a family -- I saw a case the other day of a
little girl saved a little money in a welfare family, got past
$1,000. And she was penalized. She -- oh, you can't -- your
family is on welfare, you can't do that. We've got to reform the
welfare system, not only to make it SO there's Workfare and
Learnfare and give the states a chance to innovate, but to change
the rules so people are not punished for saving. It's not a
racist thing. It isn't a black versus white or Hispanic versus
anybody else; it's what's fair and right. We've got to give some
dignity to the family, and the way to do it is to reform the
welfare system, and we're going to keep on trying. (Applause.)
Number four: job training. We've got a good new
job training approach. Frankly, there's an awful lot of
government agencies involved in servicing communities, as George
Voinovich knows. He's working hard to help us streamline this.
But we have a Job Training 2000 program that calls for one-stop
shopping, so a person that doesn't quite know now to filter his
way around through all this big bureaucracy of ours can go and
take his tiny little problem to the one-stop office and try to
get some job training that really is effective. And Job Training
2000 18 a good, new program, and I believe that it needs to have
the support of the American people, and we are going to keep
working not only legislatively, but administratively to bring
more jobs and opportunity through job training to the various
communities.
Then, the last point of these six is the question of
education. It's a little longer-run. Our education program
won't solve the problems of the cities overnight. But if you
take a look at what we really have to do in this country, we
literally have to revolutionize education. And we've got a great
Secretary of Education in Lamar Alexander. He's ably assisted by
a former businessman that many of the people in this room know,
David Kearns; he was the former Chief Executive of Xerox, who
gave up his wonderful business challenge and perhaps retirement
to come in as the number two guy in the Department of Education.
What we've done is design a program called America
2000. It literally revolutionizes the education system in this
country. It emphasizes things like choice. We find that when
parents have a choice of where their kids go to school, not only
do they get a much better shot at what they want, but the schools
that are not chosen improve themselves. so our administration
stands firmly for parental choice, for private and public and
religious schools alike. And we ought to get that done right now
for the American people. (Applause.)
These are some specific points that we're working
for, and right now I've challenged the Congress in this manner.
I've said to them: Look, I know we have political differences.
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realist about the election, and I know that the closer You're and
I'm closer a we get to the election it isn't going to be easy. to
not going to want to see me get one leg up. And I'm going
continue to fight for the things we believe.
But let's take the things we agree on now --
homeownership is one, enterprise zones is one. In fact, that
passed the United States House of Representatives, wrapped up to in
a great big tax increase bill that, of course, I wasn't going that
will help America right now. Rather than play the political game
sign. But nevertheless, we have several of these programs
-- I've had two meetings with the leadership, both Republican and
Democrat -- and I said, look, let's agree on several of these
points and pass it and show the American people that we can move
forward instead of standing around there playing politics as
usual. (Applause.) I will repeat that: Let's pass what we can
and pass it now.
Now, if you think of these points I have outlined,
there are themes to all this. Personal responsibility.
And that all adds up to the American Dream. And we are not going
Opportunity. ownership. Independence. Dignity. Empowerment.
to give up on the American Dream, and we recognize that there's -
- overlying these issues are enormously big issues. And one of
them is we've got to stop mortgaging our kids' future. And the
way to go about doing that -- and there's another idea whose time
has come -- finally we are getting bipartisan consideration of
the balanced budget amendment, something I've been talking about
for 12 years. And it's time to pass it. we've got to phase it
in, but pass it. (Applause.) And that will discipline not just
the Congress, but the Executive Branch as well. And it's really
moving now.
so if you have any influence at all on either side
of the aisle, make your case. Because it's timely and it's an
idea whose time has come.
And the other one which I consider a great, big
issue that fits into the idea of fiscal sanity is this: Forty-
three governors can take a pen and they can axe out something
that they consider is irrelevant in terms of spending, or
excessive in terms of spending. so I say and ask for support
from the American people on this one: You give me the line-item
veto this fall and let's see if we can't do a better job cutting
the spending that is ruining America's fiscal standing.
(Applause.)
And the third issue of that nature -- a balanced
budget amendment. line-item veto -- is legal reform. We've got
to help each other more and sue each other less. And the way to
do it is for tort reform. (Applause.)
And the last point I want to make today has nothing
to do with Murphy Brown. (Laughter.) But it does have to do
with something that George Voinovich mentioned. I'm talking
about family values. And I'm going to continue to talk about
that.
I've talked with Jack about this -- Jack Kemp -- and
I had a meeting with the National League of Cities -- I mentioned
this in the state of the Union -- key mayors, Tom Bradley of Los
Angeles, a mayor from a tiny -- a Republican mayor from a tiny
town in North Carolina, and all size city mayors from in-between.
One from Plano, Texas.
And they came to me and they said, we've been
thinking what we can do about the cities. And we think that the
single most important problem is the demise, the dissolution, the
decline of the American family. And I just can't tell you what
an impact that made on me. They weren't saying send us all this
money -- of course, they'd like to have that. But they addressed
themselves to the decline of the American family and they asked
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me to appoint an urban commission, a commission on the American
family, which as you may recall I did, announcing John Ashcroft
of Missouri and Mrs. strauss, the former Mayor of Dallas to be
the cochairs of that committee.
We have got to find ways to strengthen the American
family. And that's why I ask you to give sincere consideration
and support to those six objectives that I spelled out above.
Because each one of them, in some way or another, strengthens and
does not diminish the American family.
I feel very strongly about it. I know that there
are those who are deprived, who are born into almost hopeless
situations. But there are all kinds of ways that we can help.
You can lift up the kid that starts off with a tremendous
advantage through what we call "Points of Light" activities. YOU
can look at every single piece of legislation to see that it
doesn't encourage husband and wife to live apart. You can do
what you can in the whole field of education.
But all of us as Americans must address ourselves to
the idea that we must find ways to strengthen the American
families. Because Barbara Bush is right: What happens in your
house is much more important than what happens in the White
House.
so here's our agenda. I think it's a good one. I
think it is an optimistic one. I think it is an encouraging one.
And I will be proud to be taking this case to the American people
in the fall. But as I conclude today, my appeal to the American
people would be, please, help us now with the United States
Congress and move this hope and opportunity agenda through the
United states Congress. We need your help. We need the help of
the people. And now is the time,
Thank you all, and God bless you. And thank you for
your support.
END
12:57 P.M. EDT
BRS Document: 000000760
ID Number: PR92:192
Press Release Date: March 9, 1992
PR92:192
GOVERNOR WILSON'S REACTION TO THE SUPREME COURT'S DECISION TO
UPHOLD PROP 140
FOR IMMEDIATE RELEASE
CONTACT: Bill Livingstone
March 9, 1992
James Lee
Franz Wisner
(916) 445-4571
SACRAMENTO -- Following are statements on Proposition 140
Governor Pete Wilson made today when he travelled to Stockton:
"Well I am not surprised, (about the Supreme Court decision
to uphold Proposition 140) and as you know in my campaign for
Governor I supported it. That wasn't a particularly popular
position with the Legislature although there are some legislators,
not many, who have had the courage to say that they thought that
term limits were a good thing. They didn't want to make it a
career. They were willing to serve and then move on and make room
for others. I think we'll have a healthier and frankly a more
responsive legislature with term limits.
When asked about what someone does if he doesn't necessarily
make it a career, Wilson said:
"Well what one does, is he doesn't necessarily make it a
career. He is not so worried about keeping his seat and being a
political survivor that he's willing to trim his sails. And if
you take people who have either had another career, in business,
or labor, or have operated a farm, people who have done something
else and who are willing you give, say six years, maybe eight
years as a matter of public service. I think they're more
inclined to do it as public service than some of the people who
have been up there who have viewed it as their own private right
to hold office, in perpetuity. People who are that desperate to
hang on that seat, sometimes are not thinking first about the
citizens, about their constituents. They're thinking about
holding on to that seat."
-30-
DEPARTMENT SEAL CALIFORNIA
XXXVI
GOVERNOR PETE WILSON
WILSON ANNOUNCES INITIATIVE TO REFORM AUTOPILOT GOVERNMENT
SPENDING; PLAN PROTECTS TAXPAYERS, CALIFORNIA'S CHILDREN
FOR IMMEDIATE RELEASE
CONTACT: Bill Livingstone
December 9, 1991
James Lee
Franz Wisner
(916) 445-4571
GLENDALE -- Governor Pete Wilson today unveiled a statewide
ballot initiative -- The Taxpayer Protection Act -- to
dramatically reform autopilot government spending, which threatens
to bankrupt taxpayers, as well as crowd out essential funding for
our schools, health care, and public safety.
In his announcement, Wilson cited the demographic changes in
California's population, and the Legislature's inability to
support structural reforms to contain runaway government spending,
as reasons for the initiative.
"California government is running up a bill that
California can't afford,' Wilson said in a luncheon speech to the
Glendale Chamber of Commerce.
The initiative provides flexibility in the state budget
process to deal with fiscal crises, and implements significant
reforms in the state's welfare program to encourage personal
responsibility and gainful employment.
It also imposes new responsibilities on the Legislature and
Governor, including the forfeiture of their salaries and travel
and living expenses if a balanced budget is not passed by June 15.
Wilson said that unless action is taken to control autopilot
spending on public assistance programs, California will be forced
to reduce spending on both higher and basic education, public
safety, and prevention programs that can make the difference
between success or failure for children.
"We will have to violate time-honored obligations of the
Master Plan for higher education by restricting access to the
University of California and California State Universities,"
Wilson said.
"The state will be forced to make decisions that endanger
public safety, including the early release of dangerous felons
from prison," Wilson said.
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SACRAMENTO, CALIFORNIA 95814 (916) 445-2841
- 2 -
Wilson was joined at today's announcement by Assembly Leader
Bill Jones (R-Fresno) and Joel Fox, President of the Howard Jarvis
Taxpayers Association, both of whom have pledged to work for the
initiative's passage.
Specifically, major provisions of the initiative include:
** Forfeit Salaries -- requires the Legislature to pass a
budget by June 15, and if it fails to do so, the Governor and
Legislature forfeit their salaries and per diem payments until the
state budget is passed;
** Timely Budget -- moves the deadline for submitting a
balanced budget to March 1 from January 10, making the proposed
budget more timely to economic conditions, and resulting in more
focused budget deliberations and more accurate information;
** Ending Budget Impasse -- allows the Governor to declare a
fiscal emergency if the budget is not passed and signed by July 1.
The prior year's budget would continue to operate until the
Legislature and Governor pass a new budget bill. The Governor can
propose reductions in spending programs that are not protected
specifically by the Constitution (education, debt service, etc.).
The Governor can also reduce salaries and benefits of state
workers, not covered by a collective bargaining agreement, by up
to five percent. Spending reductions take effect in 30 days
unless the Legislature enacts a balanced budget by a two-thirds
vote;
** Fiscal Emergencies -- gives authority to the Governor to
declare a fiscal emergency if revenue drops and/or expenditures
increase causing a budget imbalance of at least three percent. In
a fiscal emergency, the Governor may reduce spending that is not
specifically protected by the Constitution (education, debt
service, etc.). The reductions take place in 30 days unless the
Legislature enacts an alternative plan by a two-thirds vote in
each house.
REFORMING WELFARE TO ENCOURAGE EDUCATION/JOBS
Wilson said we must do more to make welfare what it should
be for those capable of working -- transitional support rather
than indefinite maintenance and dependency.
"Welfare dependency has grown at a frightening rate in
California, frightening not just for taxpayers, but frightening
for the thousands of recipients who have been trapped and
warehoused by the welfare system," Wilson said.
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- 3 -
California's welfare system is now growing almost 12 percent
a year -- four times faster than the rate of population growth.
Wilson said the system is not only overburdening a dwindling
base of taxpayers, it is also sapping the incentive of those
already in the system.
A recent report by the nonpartisan California Legislative
Analyst found if a welfare recipient took a job paying $1,200 a
month, their monthly income would actually drop by $150.
"Welfare was meant to tide people over until they got a job,"
Wilson said. "Now it actively discourages job-seekers.'
"Welfare was meant to be a temporary assistance. Now it
shackles families to dependency and misery for generations,"
Wilson said.
"Welfare was meant to support families. Now it is weakening
and even pulling families apart. The welfare system actually
encourages teen pregnancies,' Wilson said.
To transform the welfare system, the initiative would bring
about the following incentives and reforms:
** Cal Learn -- teenage parents eligible to receive AFDC
support will get a $50 increase in their monthly grant SO long as
they make progress in completing their high school education. If
they dropout, their grant will be reduced by $50;
** Work Incentive -- the amount an individual can earn
before there is a commensurate reduction in the size of a grant
will remain at $694, thus encouraging individuals to get a job to
provide for their family. There is no loss of eligibility for any
other benefits -- Medi-Cal, child care, etc.
At the same time, the size of the overall grant level will be
reduced by ten percent (for a family of three the grant would be
reduced from $663 to $597)
** Food Stamps families will receive an increase in food
stamps by $20;
** Making Welfare Transitional -- sets up a two-tier grant
structure. For the first six months, families requiring immediate
financial support will receive the full grant level.
After six months, families with an able-bodied adult will
shift to a basic grant, which is 15 percent below the transitional
level. The two-tier system will reinforce the need for able
bodied individuals to seek supplementary income. The full grant
level will continue to be available to families in which the adult
is disabled or too old to work;
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- 4 -
** Maximum Family Grant -- grants will not be increased for
additional children born to mothers who are already receiving
welfare;
** Annual Grant Levels -- grants will be determined based on
the state's ability to pay for the costs, which is based on
revenues and caseload growth;
** Residency Requirement -- families moving to California
will receive grants no larger than what they could have received/
did receive in the state where they moved from for the first 12
months. Families living in California for more than a year are
not affected. The amount of time spent in California while not on
welfare counts against the 12-month requirement;
** Teen Pregnancy Disincentive -- provides that minors who
have children are eligible to receive AFDC support only if they
remain at home with their parent (s) or legal guardian, so long as
the parent or legal guardian is not abusive or otherwise unfit.
Payment of the grant will be made directly to the parent or legal
guardian on behalf of the teen and her child.
# # # #
June 10, 1992
Michele:
Please get me some background on these California reform
issues:
Jon Boterhouse
-- Wilson's current welfare reform proposals Nov: Gov. wilson
-- legislative term limits (enacted) Prop 140 1990
-- school choice (on this November's ballot)
Gov no position on
reagon's Moscow State
it yet
university speech
DR. 2)331-
Rich 1988 Sherwood 1807 Oral Surgeon
(20 DR. Buchard
Dentist
as
State of California
HEALTH AND WELFARE AGENCY
1600 NINTH STREET, ROOM 460
SACRAMENTO 95814
1992 MAY 20 All 9
TELEPHONE
(916) 654-3454
PETE WILSON
FAX
GOVERNOR
(916) 654-3343
FAMILY
May 19, 1992
30 Anne Barnhart, Assistant Secretary
Administration for Children and Families
U.S. Department of Health and Human Services
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
Dear Ms. Barnhart:
Attached is California's Welfare Reform package
demonstration project proposal pursuant to Section 1315 of Title
42 of the United States Code which has been the topic of
discussion during our meetings this past winter. Due to our
anticipation that State legislation will be enacted shortly in
support of the provisions, we request that the package be
reviewed and any identified issues be resolved as soon as
possible. In the meantime, we will continue to work with members
of your staff on details of the evaluation design.
This proposal is a historic attempt to alter the policy
underpinnings of California's welfare program. Proposal
components are aimed at providing work incentives, promoting
individual responsibility, supporting/reinforcing the policy of
family preservation, and addressing disturbing trends related to
teen pregnancy and school dropouts. We believe all of these
problems significantly contribute to the growing phenomenon of
government dependency. If successful, the proposal will help
hundreds of thousands of Californians to reduce or eliminate
their dependence on governmental support. California's welfare
population is growing at an alarming rate with increases of more
than ten percent per year. Less than eight percent of AFDC
recipients have earned income. The current AFDC program has very
few built-in incentives to work and, in most cases, works as a
disincentive for able-bodied recipients to find and maintain
employment. The result is that welfare recipients are relegated
to a life style dependent on government support, without
opportunity to realize their true potential and become productive
contributing members of our society. The proposed changes will
enhance and motivate these people to become self-supporting and
to break the cycle of dependency. This will result in tremendous
personal benefit to these individuals and their families and also
address several very perplexing State/national economic societal
problems.
Jo Anne Barnhart
Page Two
We estimate that the proposal will immediately save $1.2
billion annually ($579 million Federal, $580 million State, and
$26 million County with administrative costs taken into account)
in welfare costs in California. Given the current fiscal
condition of the State and Federal governments, it is imperative
that these reforms be implemented as soon as possible.
Currently, basic services are being sacrificed in order to
sustain over 2 million people on AFDC. In making welfare
recipients more responsible and productive members of society,
funds currently used to support them on welfare can be diverted
to other essential services and benefits which will ultimately
improve the quality of life for Californians as a whole.
The proposal makes several major changes in California's
AFDC program. These and other changes are discussed below.
WORK INCENTIVE
The proposal increases the work incentive in California's
AFDC program in three ways.
First, by reducing the Maximum Aid Payments (MAP) by 10
percent for recipients in their first six months and by an
additional 15 percent after six months, the proposal will reduce
the financial incentive to choose welfare over work. In his
"Work and the U.S. Welfare System: A Review,' May 1987 (DHHS
contract No. HHS-0S-100-86-0021), Robert Moffitt states that "in
the economic model, the offer of a payment to nonworkers
decreases the need to work to generate consumption (the 'income
effect'). He goes on to state that the fact that "1986 monthly
AFDC maximum levels are in excess of monthly earnings from full-
time minimum wage" earnings in eight states (including
California) strongly suggests that such work disincentives are
present. Currently in California, households of four or more
with one full-time minimum wage worker would receive more in an
AFDC grant than they would earn from employment. If the total
economic benefits (1.e., the wage plus the Earned Income Tax
Credit, less work expenses, including child care, less taxes,
especially FICA) of work are compared to the total welfare
benefits (i.e., AFDC, Food Stamps, and Medicaid), many households
of two and three are also better off on welfare than with
employment. This work disincentive has existed throughout the
1980's and undoubtedly accounts for much of the rapid increase in
California's AFDC caseloads as evidenced by the fact that less
than eight percent of AFDC recipients have earned income. We
therefore believe that the proposed reduction in the MAP, for
which we are requesting a waiver of Title 42 of the United States
Code, Section 1396a(c), is an essential component of our welfare
reform proposal.
Jo Anne Barnhart
Page Three
Second, by leaving the Minimum Basic Standard of Adequate
Care (MBSAC) at the 1990 levels, the proposal will allow
recipients to retain net non-exempt income from all sources,
including work, in an amount equal to the difference between the
MBSAC and the MAP. This equates to 14 percent of the MBSAC for
recipients in their first six months and 27 percent after six
months. It is noteworthy that the heads of most AFDC households
would only have to work a few hours per week in order to generate
enough net non-exempt income to take full advantage of these work
incentives. This type of work incentive is also key to our
proposal because, by encouraging recipients to work, even while
they remain on welfare, it will (1) raise their self-esteem,
since they will be contributing to their own support, (2)
increase acceptance of the AFDC program by the general
population, since much of the current objection to the program
surrounds the perception that it supports able-bodied adults
without asking anything of them in return, and (3) allow
recipients, through exposure to the labor market and through
actual work experience, to increase their "human capital
formation", and thereby increase their future potential earnings.
As you know, these are all themes at the cutting edge of recent
works on welfare reform by such divergent thinkers as David
Ellwood (Poor Support), Lawrence Mead (Beyond Entitlement), and
Stuart Butler and Anna Kondratas (Out of the Poverty Trap).
Third, by eliminating the time limits on the $30 and 1/3
earned income disregard, the proposal will allow for a smoother
transition to total independence from welfare for families as
their incomes from employment increase. Without the extension of
this disregard, AFDC families have only minimal financial
incentives to increase their earned income over a broad band of
potential incomes. The disregard gives them a financial
incentive to work more hours and to seek higher wage jobs by
allowing them to retain one third of any increase in their
earnings (at least up to the point where the 185 percent gross
income limit causes them to leave aid altogether).
In addition to increasing financial incentives to work, the
proposal would also eliminate a major barrier to employment, the
100-hour work rule, for which we are also requesting a waiver.
This rule is inconsistent with the basic thrust of our welfare
reform proposal. For larger AFDC households, the 100-hour work
limit could actually prevent the household from earning enough
income to take full advantage of the work incentive that would
result from the proposed gap between the MBSAC and the MAP.
Our proposal recognizes that some recipients are not able to
work due to the incapacity or age of the head of household.
Thus, these recipients would be exempted from the 15 percent MAP
reduction that would otherwise occur after six months on aid.
Jo Anne Barnhart
Page Four
MEDICAL CARE
We also recognize the key role that the availability of
Medicaid services without a share of cost plays for many low-
income households, especially those newly terminated or about to
be terminated from AFDC due to increases in earnings. For some,
the prospect of losing eligibility to Medi-Cal could overwhelm
any other financial incentives provided by our welfare reform
proposal. We are therefore seeking the Secretary's concurrence
and approval that, if California retains the current Medicaid
maintenance need levels, the lower spenddown (a result of the
higher maintenance need levels) is an appropriate cost of the
demonstration project, and Federal financial participation would
be made available under Title 42, United States Code, Section
1315a(2).
To further alleviate concerns about potential loss of
medical benefits and also to provide additional incentives for
California's low-income families to free themselves from the
"welfare trap, " California will implement CheckUp, a new State-
supported health insurance program which will provide low-income
pre-schoolers up to the age of six with access to prevention and
primary care services.
The CheckUp program is designed to provide subsidized
private health insurance to an ever-increasing segment of the
population -- uninsured low-income children, many of whom are the
dependents of working parents. More than 300,000 uninsured
children under age six will be eligible for this coverage in
California. Implementation of CheckUp will begin in FY 1992/93.
A second, longer-term goal of CheckUp will be to integrate
children currently served by Medi-Cal into the streamlined
private insurance system established by CheckUp to offer
prevention and primary. care services to all of California's pre-
schoolers. This long-term integration will ultimately reach more
than one million additional children under age six.
The longer term integration of Medi-Cal and CheckUp will
begin as Federal waivers are obtained and as provider capacity
and financial resources allow. In the short-term, the State will
use residual funds (CheckUp program funds not used to subsidize
participation for the uninsured) to enhance Medi-Cal prevention
and primary care services for pre-schoolers.
In addition to the obvious health benefits of such a
program, we also expect it to relieve the pressure that some
working families feel to reduce their incomes in order to qualify
for Medicaid.
Jo Anne Barnhart
Page Five
EMPLOYMENT SERVICES
We recognize that financial incentives to work may not be
enough for some recipients, especially those who lack job search
skills and those who are simply having trouble finding work on
their own. To address this, we are also proposing a new JOBS
component to provide voluntary up-front job club workshops to
recipients in their first six months on aid who are not being
served by GAIN. As you know, job club workshops have been proven
to be cost-effective in the past and we believe that they will
prove extremely beneficial when combined with significant
financial incentives to work. We believe that the proposed job
clubs will be more beneficial on a solely volunteer basis. The
individuals subject to the grant reductions under this proposal
will be highly motivated to increase earned income through work
and will volunteer. It is under this basic concept that we are
requesting waiver of the good cause, conciliation and sanction
sections of the Federal laws and regulations for these Job club
workshops. We intend that these workshops be a strong, positive
support of our work incentives. We also believe that our current
GAIN (JOBS) program can be better tailored to serve clients in
the new more work-oriented AFDC environment that will result from
our proposal. Thus, we are currently exploring several options
for redesigning GAIN to make it more work-oriented.
CALIFORNIA RELOCATION GRANT
The proposal reduces the incentive for families to migrate
to California for the purpose of obtaining higher aid payments.
This would be accomplished by limiting (for a 12-month period)
the grant level for families moving to California to the lesser
of California's grant level or the MAP of the State of previous
residence.
MAXIMUM FAMILY GRANT
The proposal encourages family responsibility by capping the
MAP to exclude any children conceived while the mother or father
was receiving aid. It is important to note that such children
would be counted in determining the appropriate MBSAC for the
family and would be covered by Medicaid.
TRANSITIONAL GRANT
As indicated above, the proposal would reduce a family's MAP
after six months on aid by 15 percent. We believe that it is
important to provide six months of financial assistance at the
higher transitional level in order to allow able-bodied adult
recipients to overcome temporary economic and family setbacks.
Jo anne Barnhart
Page Six
This 15 percent reduction will not be imposed on families in
which the adult caretaker is disabled and receiving SSI/SSP or
over 60 years of age nor will it apply to a minor parent living
independently and regularly attending school.
CAL LEARN
Cal Learn will encourage pregnant and parenting teens to
stay in school by providing a $50 per month incentive payment or
a $50 per month grant reduction based on school attendance. In
addition, Cal Learn participants living independently will not be
subject to the 15 percent transitional grant reduction referenced
above if they are regularly attending school. We believe that,
in the long run, keeping these children in school will increase
their parenting skills, enhance their earning potential and
reduce their chances of long-term welfare dependency. To further
assist the teen parent, child care services, necessary
transportation to and from the child care provider, ancillary
expenses and case management will be provided to Cal Learn
participants under the JOBS Program, but outside of the GAIN
program.
TEEN PREGNANCY DISINCENTIVE
The proposal also includes a provision which restricts the
conditions under which minors who have children can receive AFDC.
The additional condition of eligibility is that such minors can
be eligible for AFDC only if they remain at home with their
parent (s) or legal guardian. Current requirements provide that
the income of the parent(s) would also be considered in
determining the minor's eligibility. The provision also requires
that the AFDC payment be made directly to the parent or guardian
on behalf of the minor. The provision also recognizes certain
specified exceptions to the requirement that the minor live with
his/her parent. These exceptions were developed to ensure that
the minor is not forced to live in an unsafe or inappropriate
environment. We believe that this welfare reform component will
discourage teen pregnancy and encourage families to stay intact.
Though not a part of this demonstration project, the Wilson
Administration currently has the following three major family
planning initiatives under development which will also help
address the teen pregnancy problem. "Education Now and Babies
Later" is a multifaceted preventive health information and
education initiative that targets teens between the. ages of 12-14
to help them postpone sexual activity. "Expanded Office of
Family Planning (OFP) Teen Counseling Services" targets AFDC,
GAIN, Foster Care and other teens at risk of pregnancy due to
ineffective use of contraceptives or lack of access/knowledge of
OFP Services. "Expanded Adolescent Family Life Program" (AFLP)
expands AFLP case management services in counties with the
highest teen birth rates.
Jo Anne Barnhart
Page Seven
CHILD SUPPORT
State legislation signed by the Governor in 1991 will
increase most child support awards due to a revised statewide
mandatory formula; prohibit State licensure of professionals
(e.g., realtors, contractors) who refuse to come into compliance
with court-ordered support obligations; require labor unions and
public utility companies to provide information to child support
agencies; and mandate maintenance of Social Security Numbers as
part of the Department of Motor Vehicles' driver's license and
vehicle registration data bases. A major statewide automation
project, now in the procurement process, will significantly
increase the effectiveness of locate, enforcement and collection
actions on behalf of single parent families, thus decreasing
their need for public assistance. These activities will
complement the overall welfare reform effort by increasing child
support collections on behalf of AFDC recipients and former
recipients, as well as other single parents needing assistance
enforcing support orders.
We have attached amended sections of the IV-A State Plan to
implement portions of the welfare reform proposal. In addition,
we will propose State legislation to modify California's GAIN
program and to make it more employment oriented and remove
program barriers to employment in an effort to help welfare
recipients move more quickly to paying jobs.
We are convinced that our comprehensive statewide proposal
will significantly reduce welfare dependency in California. Yet
many of its features, the extension of $30 and 1/3 and the Cal
Learn component, for example, involve significant investments
which will further Governor Wilson's commitment to preventive
government. In combination with other initiatives that we are
proposing in the Health and Welfare area, we believe that our
welfare reform proposal will not only result in savings to the
taxpayer but in reductions in poverty and improvements in the
quality of life for California's less fortunate families.
All cost/savings estimates are subject to revision as part
of our April Subvention revision of the Governor's Budget;
revised numbers will be provided to you as soon as the Subvention
process is completed.
Jo Anne Barnhart
Page Eight
To facilitate expeditious review of the proposal, we have
separately addressed each proposal component. If you have any
concerns about any of the concepts, we would like to discuss them
with you as soon as possible in order to assure a rapid approval
date. Questions should be directed to me at (916) 654-3345, or
John Healy, Interim Director of the Department of Social
Services, at (916) 657-2598. Questions concerning Medicaid
should be directed to John Rodriguez, Chief Deputy Director of
Programs, Department of Health Services at (916) 654-0391.
Sincerely,
RUSSELL S. GOULD
Secretary
Attachments
cc:
Ms. Christine Nye, Director
Medicaid Bureau
Health Care Financing Administration
East High Rise Building, Room 200
6325 Security Blvd.
Baltimore, MD 21207
Ms. Mary Kennison, Director
Office of Demonstrations
and Evaluations
Health Care Financing Administration
2430 Park Meadows Building
6325 Security Blvd
Baltimore, MD 21207
Mr. Lawrence L. McDonough
Associate Regional Administrator
Division of Medicaid
Health Care Financing Administration
75 Hawthorne Street, Fourth Floor
San Francisco, CA 94105
Sharon Fujii
Regional Administrator
Administration for Children and Families
50 United Nations Plaza, Room 450
San Francisco, CA 94102
APPLICATION FOR
1 DATE SUBMITTED
Assocant -
FEDERAL ASSISTANCE
L - B.BINSACK
& MATE RECEIVED BY STATE
State Application
Application
Productication
Commetion
Construction
a DATE RECEIVED BY FEDERAL ADDICT
Federal tenter
N/A
8 AMOUNT SUPORIMATE
Lice INSURE
Organizations LOVE
State of California
Department of Social Services
- - BIAY. sounty. sism. - as mov):
Name and texphane number of TO person - - surrenced on manure -
Pm - area ando)
744 P Street
Kathy B. Lewis, Chief
Sacramento, CA 95814
AFDC Program Branch
(916) 657-2128
& EMPLOYER DENTIFICATION MAIN IDEM
1. TYPE - APPLICANT: unar appropriate morer in bes)
A Store
M indicendent School Dat.
-
a County
1 Susa Controlled instruction of regher Lawrng
C Muncai
d. Private University
& TYPE OF APPLICATION
D. Tewns
K. than Tros
D
have
Contrumen
Revision
E interstate
L Individual
F. thurmunicial
M Prote Organization
= Reverse. - accreptine inter(s) in Sexies).
0. Social Danc
N Other (Sourtry)
a increase Award B. Decrease Award
C. Increase Durstion
D Decrease Durstion Dow (specify):
& NAME 8 FEDERAL ADDICT:
Department of Health and Human Services
N/A
Administration for Children and Families-
16. CATALOG or FEDERAL DOMESTIC
12 DESCRIPTIVE TITLE or APPLICANTS PROJECT:
ASSISTANCE NUMBER
13 a 812
TITLE Assistance Payments
California Welfare Reform
Research & Demonstration Project
Demonstration Project
as AREAS AFFICIED BY PROJECT LIDEL countries SIGNAL OKI
Statewide
11 PROPOSE: NONET
" CONGRESSIONAL DISTRICTS OF
Star: Date
Enoing Date
a. Applicant
D. Promot
3, 4
Statewide
18. as APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
18. ESTIMATED FUNDING
a Fatural
$
8
& YES THIS PREAPPLICATION/APPLICATION was MADE AVAILABLE TO THE
7,500,000
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
a Appicant
8
8
DATE
& Sum
8
20
7,500,000
b
NO.
PROGRAM = NOT COVERED BY ED. 12372
a Local
$
8
OR PROGRAM MAS P.ST BEEN TELECTED BY 5 , 5.
B Drue
8
8
L Program INCOME
8
8
17. B THE APPLICANT BELINQUENT on ANY FEDERAL SEXT
Tas
I "Yes" - on exprenation.
No
I TOTAL
30
s 15,000,000
11. TO THE NOT - MY DIOWLEDGE AND MLSF. ALL DATA - THIS ARE TRUE AND CORNECT. THE accurent MAS MEW BULT
AUTHORIZED BY THE DOVERNING acct of THE APPLICANT AND THE APPLICANT - COMPLY WITH THE ATTACHED ASSURANCES w THE ASSISTANCE a AWARDED
. Time
: Teacherry number
a Types have of Authorized Apream serve
Interim Director
(916) 657-2598
John D. Healv
0 Dare Signed
& Signature of Authorized Aspresentative
Xohn PARK - R duy
statement Form d2s (REV 4-88:
PRIVOLE
Prescribed BY OMB Circuse a102
Authorized for Local Reproduction
APPLICATION FOR
& DATE SUBMITTED
Applicant teemther
FEDERAL ASSISTANCE
L TYPE or SUBMISSION
& DATE RECEIVED BY STATE
State Application tenter
Association
Protestication
Construction
Construction
a DATE RECEIVED ST FEDERAL ADDICT
Federal Manufar
5.
Non-Construction
Non-Censtruction
N/A
1 AMOUNT INFORMATION
Lacal MOTEL
State of California
Organizational Unit
Department of Health Services
Address - city. assurity, sism. and as code):
Name and temphone number or the person to to serviced on manage news,
- SECRETION (give are name)
714 P Street
Sacramento, CA 95814
John Rodriguez
(916) 654-0391
& EMPLOYER EDENTIFICATION NUMBER (EINE
1. TYPE OF APPLICANT: (enter accoments letter an box)
A Bure
M Independent School DIL
-
B. County
1 Susa Contrated Instruction of Higher Lawrng
c Municipal
J. Private University
& TYPE - APPLICATION
D. Township
K thain Tribs
New
Continuation
Revision
E Inverguse
L individual
F. Intermunicipal
M Prais Organization
I Reven enter accreptions letter(s) in box(es).
a Special Detret
N Dow (Specify)
& increase Aware
B. Decrease Award
C. Increase Duration
D Decream Duration Other (specify):
2. SLAMPE 8 FEDERAL AGENCY:
Department of Health and Human Services
Health Care Financing Administration
1. CATALDO or FEDERAL DOMESTIC
11. DESCRIPTIVE TITLE OF APPLICANTS PROJECT:
ASSISTANCE NUMBER
a
TITLE
California Welfare Reform
Demonstration Project - Medicaid
12 AREAS AFFECTED BY PROJECT (CIDOL countries states. ex.I
Elements
11 PROPOSED REQUEST
" CONCRESSIONAL DISTRICTS OF
Sun Date
Enoing Date
a Applicant
D Proce:
3, 4
Statewide
12 EXTIMATED FUNDING
16. M APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12372 PROCESS?
& Factoral
s
8
a
YES THIS PREAPPLICATION/APOLICATION WAS MADE AVALABLE TO THE
(See accompanying
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
a Applicant
$
8
DATE
SF 424 submitted
= Sum
s
20
by Calif. Dept. of
b
NO.
PROGRAM B NOT COVERED BY ED. 12372
1 Local
I
4
Social Services.)
OR PROGRAM HAS 1.)T BEEN TELECTED BY 5.0.00 -
a Dow
s
so
& Program income
$
20
17. s THE APPLICANT BELINQUENT on ANY FEDERAL BESTI
Yes
X "Yes" stoch an experition.
No
' TOTAL
$
no
18. TO THE BEST of MY KNOWLEDGE AND M.W. ALL DATA & THE APPLICATION/PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT MAS BATER BULY
AUTHORIZED BY THE GOVERNING BOOT OF THE APPLICANT AND THE APPLICANT WELL COMPLY WITH THE ATTACHED ASSURANCES . THE ASSISTANCE = AWARDED
& Types Name - Authorized Represe above
. Time
$ Teachere number
John Rodriguez
Deputy Director of Programs
(916) 654-0391
& Signature of Authorized Representative
. Date Signed
Previous John
Entens NEX LIMITE Rodugery
4/7/92
Standard Form 624 (REV 4-35)
Presented By DMB Circular A-102
Authorized for Local Reproduction
Flood Duesser requires recipients in a special flood becard
Protection
U.S.C. 470). EO 11583 (identification and
NJTH & pe scipate in the program and/or purchase
protection of bistoric properties), and the
disurance is the sois) tost of insurable
Archeoological and Historic Preservation Act of
struction and acquisition is $10,000 of more.
1974 U.S.C. assa-I et seq.).
will comply with environments' standards which
14. Will somply with P.L. 83.348 regarding the
may be prescribed pursuant to the following: (a)
protection of human subjects involved in research.
institution of environmental Quality control
development, and related activities supported by
IDEASURES under the National Environmental
this and of assistance.
Policy Act of 1969 (P.L. 91-190) and Executive
15. Will comply with the Laboratory Animal Wellare
Order (EO) 11514: (b) notification of violating
Ac: of 1556 (P.L. B5.544, as amended. 7 U.S.C.
facilities pursuant 20 EO 1173E; (c) protection of
2131 st mg.) persining to the are, tendling. and
wellands pursuant to EO 11990; (d) evaluation o!
treatment of WATED blooded animals held for
flood hererds in floodplains in accordance with EO
research, teaching. or other activities supported by
11953; (e) assurance of project consistency with
this award of assistance.
1bt approved State management program
developed under the Coasis) Zone Management
16. Will comply with the Lead.Burd Paint Poisoning
Ac: of 1572 (16 U.S.C. H 1451 el stq.); in
Prevention At. (42 U.S.C. " 4B01 e! seq.) which
conformity of Federal actions to Siste (Clear Air)
probibits the use of lead based paint in
Implementation Piens under Section 176(c) of the
construction or rehabilitation of residence
Clear Air AC. of 1955. as amended (42 U.S.C. I
7401 e! sec.): (g) protection of underground sources
17. Will cause 20 be performed the required Financial
of drinking wale: under the Sue Drinking Water
and compliance audits in accordance with the
Act of 1974. as amended, (P.L. 53-523): and (h)
Single Audit Act of 1964.
protection of endangered species under the
Endengered Species Ail of 1973, as amended, (P.L.
18. Will comply with all applicable requirements of all
other Federal izws, executive order. regulations
33-2051.
and policies roverning this program.
12 will tomply with the Wild znd Scenic Rivers A=:
1956 (16 U.S.C. 11 1271 :: seq.) related 10
forecting components o: potential components of
actional will and scenic rivers system.
SIGNATURE 5: AUTHORIZED CERTIFYING OFFICIAL
Interim Director
John Didealy
DATE SUBMITTED
ORGANIZATION
Department of Social Services
= 6763 16.22. back
- U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
CERTIFICATION Attachment REGARDING DRUG-FREE WORKPLACE REQUIREMENTS
GRANTEES OTHER THAN INDIVIDUALS
BY signing and/or submitting this application or grant
agreement, the grantee is providing the certification set
out below.
This certification is required by regulations
implementing the Drug-Free Workplace ACT of 19EE, 45 CFR
Part 75, Subpart F. The regulations, published in the
January 31, 1989 Federal Register, require certification by
grantees thet they will maintain a drug-free workplace. The
certification set DUE below is a material representation of
fact upon which reliance will be placed when the U.S.
Department of Health and Human Services determines to award
the grant. False certification DI violation of the
certification shall be grounds for suspension of payments.
suspension = termination of the grant, or governmentwide
suspension == debarment.
}.. The grantee certifies that it will provide a drug-
free workplace by:
(2) Publishing 2 statement notifying employees that the
unlawful manufacture, distribution, dispensing,
possession, == use of 2 controlled substance is
prohibited in the grantee's workplace and specifying
the actions that will be taken against employees for
violation of such prohibition;
(3) Establishing 2 drug-free awareness program =0
inform employees about:
(1) the dangers of i=== abuse in the workplace;
(2) the grantee's policy of maintaining 2 drug-free
workplace;
(3) any available drug counseling, zehabilitation, and
employee assistance programs; and
(4) the penalties that may be imposed upon employees
:== doug abuse violations DECURRIDG in the workplace;
(c) make it E requirement that each employee =0 be
engaged in the performance of the grant be given a COPY
of the statement required by paragraph (E);
(=) Notifying the employee in the statement required
by paragraph (a) the 25 E condition of employment
under the the employee will:
(1) abide by the terms of the statement; and
(2) notify the employer of any criminal drug statute
conviction for a violation occurring in the workplace not
later than five days after such conviction:
(e) Notifying the agency within ten days after
receiving notice under subparagraph (d) (2) from an
employee or otherwise receiving actual notice of such
conviction;
(5) Taking one of the following actions, within 30
days of receiving notice under subparagraph (d) (2),
with respect to any employee who is BO convicted;
(2) taking appropriate personnel action against such
an employee, up to and including termination; or
(2) requiring such employee to participate
satisfactorily in 2 drug abuse assistance or
rehabilitation program approved for such purposes by a
Federal, state or local health, law enforcement. or
other appropriate agency;
(g) Making 2 good faith effort to continue to maintain
2 drug-free workplace through implementation of
paragraphs (E), (b), (c), (d), and (f).
E. The grantee shall insert in the space provided
below, the size(s) for the performance of WDIX done
connection with the specific grant (Stzeet address,
city, county, STETE, ==p code):
Statewide
THE GOVERNOR'S OFFICE
Michelle-
Here's some info. on Prop 140,
initiative. of you, Dan or the
Choice, and the Welfare
uniter need anything at all, give
me a call. Best of luch
GOVERNOR PETE WILSON SACRAMENTO, Mark CALIFORNIA 95814
Administration of Ronald Reagan, 1988 / May 31
ice banned have
the public; and
Remarks and a Question-and-Answer Session With the Students and
produced them
Faculty at Moscow State University
0 weeks ago, be-
May 31, 1988
Vriters Union, the
ke the Pasternak
The President. Thank you, Rector Lo-
tion revolution, and as its emblem, one
museum. In the
exile-the stage
gunov, and I want to thank all of you very
might take the tiny silicon chip, no bigger
r example-have
much for a very warm welcome. It's a great
than a fingerprint. One of these chips has
and to work, and
pleasure to be here at Moscow State Uni-
more computing power than a roomful of
been allowed a
versity, and I want to thank you all for turn-
old-style computers.
ing out. I know you must be very busy this
As part of an exchange program, we now
applaud the new
week, studying and taking your final exami-
have an exhibition touring your country
nations. So, let me just say zhelayu vam
that shows how information technology is
to see it go fur-
hail Baryshnikov
uspekha [I wish you success]. Nancy
transforming our lives-replacing manual
couldn't make it today because she's visiting
labor with robots, forecasting weather for
tists Mrs. Reagan
in Washington,
Leningrad, which she tells me is a very
farmers, or mapping the genetic code of
We hope to see
beautiful city, but she, too, says hello and
DNA for medical researchers. These micro-
olzhenitsyn pub-
wishes you all good luck.
computers today aid the design of every-
And we hope to
Let me say it's also a great pleasure to
thing from houses to cars to spacecraft; they
strictions on the
once again have this opportunity to speak
even design better and faster computers.
writers. We want
directly to the people of the Soviet Union.
They can translate English into Russian or
but for our own.
Before I left Washington, I received many
enable the blind to read or help Michael
the freedoms in
heartfelt letters and telegrams asking me to
Jackson produce on one synthesizer the
secure both our
carry here a simple message, perhaps, but
sounds of a whole orchestra. Linked by a
And we believe
also some of the most important business of
network of satellites and fiber-optic cables,
country are free
this summit: It is a message of peace and
one individual with a desktop computer and
eople are richer.
good will and hope for a growing friendship
a telephone commands resources unavail-
and closeness between our two peoples.
able to the largest governments just a few
poets-although
ng of any of the
As you know, I've come to Moscow to
years ago:
ege to help man
meet with one of your most distinguished
Like a chrysalis, we're emerging from the
t, by reminding
graduates. In this, our fourth summit, Gen-
economy of the Industrial Revolution-an
or and hope and
eral Secretary Gorbachev and I have spent
economy confined to and limited by the
pity and sacrifice
many hours together, and I feel that we're
Earth's physical resources-into, as one
of our past. The
getting to know each other well. Our dis-
economist titled his book, "The Economy in
ly be the record
cussions, of course, have been focused pri-
Mind," in which there are no bounds on
the props, the
marily on many of the important issues of
human imagination and the freedom to
are and prevail.
the day, issues I want to touch on with you
create is the most precious natural resource.
in a few moments. But first I want to take a
here today and
Think of that little computer chip. Its value
ith me, and God
little time to talk to you much as I would to
isn't in the sand from which it is made but
any group of university students in the
in the microscopic architecture designed
United States. I want to talk not just of the
into it by ingenious human minds. Or take
at 1:44 p.m. in
realities of today but of the possibilities of
the example of the satellite relaying this
tomorrow.
Fadeyev Central
broadcast around the world, which replaces
'e was introduced
Standing here before a mural of your rev-
thousands of tons of copper mined from the
irpov, first secre-
olution, I want to talk about a very different
Earth and molded into wire. In the new
Soviet Writers'
revolution that is taking place right now,
economy, human invention increasingly
quietly sweeping the globe without blood-
makes physical resources obsolete. We're
shed or conflict. Its effects are peaceful, but
breaking through the material conditions of
they will fundamentally alter our world,
existence to a world where man creates his
shatter old assumptions, and reshape our
own destiny. Even as we explore the most
lives. It's easy to underestimate because it's
advanced reaches of science, we're return-
not accompanied by banners or fanfare. It's
ing to the age-old wisdom of our culture, a
been called the technological or informa-
wisdom contained in the book of Genesis in
683
May 31 / Administration of Ronald Reagan, 1988
the Bible: In the beginning was the spirit,
somehow had always hung on to power. So
and it was from this spirit that the material
one day, in a town meeting, an old woman
abundance of creation issued forth.
got up and said to him: "There is a folk
But progress is not foreordained. The key
legend here where I come from that when
is freedom-freedom of thought, freedom
a baby is born, an angel comes down from
of information, freedom of communication.
heaven and kisses it on one part of its body.
The renowned scientist, scholar, and found-
If the angel kisses him on his hand, he be-
ing father of this university, Mikhail Lo-
comes a handyman. If he kisses him on his
monosov, knew that. "It is common knowl-
forehead, he becomes bright and clever.
edge," he said, "that the achievements of
And I've been trying to figure out where
science are considerable and rapid, particu-
the angel kissed you so that you should sit
larly once the yoke of slavery is cast off and
there for so long and do nothing." [Laugh-
replaced by the freedom of philosophy."
ter]
You know, one of the first contacts between
We are seeing the power of economic
your country and mine took place between
freedom spreading around the world. Places
Russian and American explorers. The Amer-
such as the Republic of Korea, Singapore,
icans were members of Cook's last voyage
on an expedition searching for an Arctic
Taiwan have vaulted into the technological
passage; on the island of Unalaska, they
era, barely pausing in the industrial age
came upon the Russians, who took them in,
along the way. Low-tax agricultural policies
in the subcontinent mean that in some
and together with the native inhabitants,
held a prayer service on the ice.
years India is now a net exporter of food.
The explorers of the modern era are the
Perhaps most exciting are the winds of
entrepreneurs, men with vision, with the
change that are blowing over the People's
courage to take risks and faith enough to
Republic of China, where one-quarter of
brave the unknown. These entrepreneurs
the world's population is now getting its
and their small enterprises are responsible
first taste of economic freedom. At the
for almost all the economic growth in the
same time, the growth of democracy has
United States. They are the prime movers
become one of the most powerful political
of the technological revolution. In fact, one
movements of our age. In Latin America in
of the largest personal computer firms in
the 1970's, only a third of the population
the United States was started by two col-
lived under democratic government; today
lege students, no older than you, in the
over 90 percent does. In the Philippines, in
garage behind their home. Some people,
the Republic of Korea, free, contested,
even in my own country, look at the riot of
democratic elections are the order of the
experiment that is the free market and see
day. Throughout the world, free markets
only waste. What of all the entrepreneurs
are the model for growth. Democracy is the
that fail? Well, many do, particularly the
standard by which governments are meas-
successful ones; often several times. And if
ured.
you ask them the secret of their success,
We Americans make no secret of our
they'll tell you it's all that they learned in
belief in freedom. In fact, it's something of
their struggles along the way; yes, it's what
a national pastime. Every 4 years the Amer-
they learned from failing. Like an athlete in
ican people choose a new President, and
competition or a scholar in pursuit of the
1988 is one of those years. At one point
truth, experience is the greatest teacher.
there were 13 major candidates running in
And that's why it's so hard for govern-
the two major parties, not to mention all
ment planners, no matter how sophisticat-
the others, including the Socialist and Lib-
ed, to ever substitute for millions of individ-
ertarian candidates-all trying to get my
uals working night and day to make their
job. About 1,000 local television stations,
dreams come true. The fact is, bureaucra-
8,500 radio stations, and 1,700 daily news-
cies are a problem around the world.
papers-each one an independent, private
There's an old story about a town-it could
enterprise, fiercely independent of the Gov-
be anywhere-with a bureaucrat who is
ernment-report on the candidates, grill
known to be a good-for-nothing, but he
them in interviews, and bring them togeth-
684
Administration of Ronald Reagan, 1988 / May 31
; on to power. So
er for debates. In the end, the people vote;
us to recognize shortcomings and seek solu-
ng, an old woman
they decide who will be the next
"There is a folk
tions. It is the right to put forth an idea,
President. But freedom doesn't begin or end
e from that when
scoffed at by the experts, and watch it catch
with elections.
comes down from
fire among the people. It is the right to
Go to any American town, to take just an
dream-to follow your dream or stick to
e part of its body.
example, and you'll see dozens of churches,
his hand, he be-
your conscience, even if you're the only one
representing many different beliefs-in
kisses him on his
in a sea of doubters. Freedom is the recog-
many places, synagogues and mosques-and
right and clever.
nition that no single person, no single au-
you'll see families of every conceivable na-
figure out where
thority or government has a monopoly on
tionality worshiping together. Go into any
at you should sit
the truth, but that every individual life is
schoolroom, and there you will see children
nothing." [Laugh-
infinitely precious, that every one of us put
being taught the Declaration of Independ-
on this world has been put there for a
ence, that they are endowed by their Cre-
reason and has something to offer.
wer of economic
ator with certain unalienable rights-among
the world. Places
America is a nation made up of hundreds
them life, liberty, and the pursuit of happi-
Korea, Singapore,
of nationalities. Our ties to you are more
ness-that no government can justly deny;
the technological
than ones of good feeling; they're ties of
the guarantees in their Constitution for
le industrial age
kinship. In America, you'll find Russians, Ar-
freedom of speech, freedom of assembly,
ricultural policies
and freedom of religion. Go into any court-
menians, Ukrainians, peoples from Eastern
in that in some
room, and there will preside an independ-
Europe and Central Asia. They come from
exporter of food.
ent judge, beholden to no government
every part of this vast continent, from
re the winds of
power. There every defendant has the right
every continent, to live in harmony, seeking
over the People's
to a trial by a jury of his peers, usually 12
a place where each cultural heritage is re-
e one-quarter of
men and women-common citizens; they
spected, each is valued for its diverse
now getting its
are the ones, the only ones, who weigh the
strengths and beauties and the richness it
freedom. At the
evidence and decide on guilt or innocence.
brings to our lives. Recently, a few individ-
of democracy has
In that court, the accused is innocent until
uals and families have been allowed to visit
powerful political
proven guilty, and the word of a policeman
relatives in the West. We can only hope
Latin America in
or any official has no greater legal standing
that it won't be long before all are allowed
of the population
than the word of the accused. Go to any
to do so and Ukrainian-Americans, Baltic-
overnment; today
university campus, and there you'll find an
Americans, Armenian-Americans can freely
he Philippines, in
open, sometimes heated discussion of the
visit their homelands, just as this Irish-
free, contested,
problems in American society and what can
American visits his.
the order of the
be done to correct them. Turn on the tele-
Freedom, it has been said, makes people
Id, free markets
vision, and you'll see the legislature con-
selfish and materialistic, but Americans are
Democracy is the
ducting the business of government right
one of the most religious peoples on Earth.
ments are meas-
there before the camera, debating and
Because they know that liberty, just as life
voting on the legislation that will become
itself, is not earned but a gift from God,
10 secret of our
the law of the land. March in any demon-
they seek to share that gift with the world.
it's something of
stration, and there are many of them; the
"Reason and experience," said George
1 years the Amer-
people's right of assembly is guaranteed in
Washington in his Farewell Address, "both
V President, and
the Constitution and protected by the
forbid us to expect that national morality
rs. At one point
police. Go into any union hall, where the
can prevail in exclusion of religious princi-
idates running in
members know their right to strike is pro-
ple. And it is substantially true, that virtue
it to mention all
tected by law. As a matter of fact, one of
or morality is a necessary spring of popular
Socialist and Lib-
the many jobs I had before this one was
government." Democracy is less a system of
ying to get my
being president of a union, the Screen
government than it is a system to keep gov-
levision stations,
Actors Guild. I led my union out on strike,
ernment limited, unintrusive; a system of
,700 daily news-
and I'm proud to say we won.
constraints on power to keep politics and
But freedom is more even than this.
pendent, private
government secondary to the important
ndent of the Gov-
Freedom is the right to question and
things in life, the true sources of value
candidates, grill
change the established way of doing things.
found only in family and faith.
ing them togeth-
It is the continuing revolution of the mar-
But I hope you know I go on about these
ketplace. It is the understanding that allows
things not simply to extol the virtues of my
685
Administration of Ronald Reagan, 1988 / May 31
t see the movie. I
eral Secretary Gorbachev and I signed last
A people free to choose will always choose
talking about is
December in Washington and whose instru-
peace.
als are.
ments of ratification we will exchange to-
Americans seek always to make friends of
mean rejection of
morrow-the first true nuclear arms reduc-
old antagonists. After a colonial revolution
growing strong
tion treaty in history, calling for the elimi-
with Britain, we have cemented for all ages
ted in the Earth
nation of an entire class of U.S. and Soviet
the ties of kinship between our nations.
Sun, so, too, posi-
nuclear missiles. And just 16 days ago, we
After a terrible Civil War between North
ted in traditional
saw the beginning of your withdrawal from
and South, we healed our wounds and
culture, in family
Afghanistan, which gives us hope that soon
found true unity as a nation. We fought two
nust take its life
the fighting may end and the healing may
world wars in my lifetime against Germany
om the source of
begin and that that suffering country may
and one with Japan, but now the Federal
1 change will lead
find self-determination, unity, and peace at
Republic of Germany and Japan are two of
ew opportunities,
long last.
our closest allies and friends.
ch the tradition is
It's my fervent hope that our constructive
Some people point to the trade disputes
its full flowering.
cooperation on these issues will be carried
between us as a sign of strain, but they're
ning to your gen-
on to address the continuing destruction
the frictions of all families, and the family of
and conflicts in many regions of the globe
and that the serious discussions that led to
free nations is a big and vital and some-
should remember
the Geneva accords on Afghanistan will
times boisterous one. I can tell you that
titutionalized will
help lead to solutions in southern Africa,
nothing would please my heart more than
ch freedom will
Ethiopia, Cambodia, the Persian Gulf, and
in my lifetime to see American and Soviet
shoulder. A bird
Central America. I have often said: Nations
diplomats grappling with the problem of
w long the rope,
do not distrust each other because they are
trade disputes between America and a
And that is why,
armed; they are armed because they dis-
growing, exuberant, exporting Soviet Union
General Secretary
trust each other. If this globe is to live in
that had opened up to economic freedom
of how important
peace and prosper, if it is to embrace all the
and growth.
inge-to put guar-
possibilities of the technological revolution,
And as important as these official people-
e've been talking
then nations must renounce, once and for
to-people exchanges are, nothing would
ninder of a divid-
all, the right to an expansionist foreign
please me more than for them to become
'all. It's time to
policy. Peace between nations must be an
unnecessary, to see travel between East and
:eep people apart.
enduring goal, not a tactical stage in a con-
West become so routine that university stu-
sed exchange pro-
tinuing conflict.
dents in the Soviet Union could take a
ents between our
I've been told that there's a popular song
month off in the summer and, just like stu-
etary Gorbachev
in your country-perhaps you know it-
dents in the West do now, put packs on
wonderful phrase
whose evocative refrain asks the question,
their backs and travel from country to
his: "Better to see
"Do the Russians want a war?" In answer it
country in Europe with barely a passport
ar about it a hun-
says: "Go ask that silence lingering in the
check in between. Nothing would please
chev and I first
air, above the birch and poplar there; be-
me more than to see the day that a concert
1985. In our dis-
neath those trees the soldiers lie. Go ask my
promoter in, say, England could call up a
on working up to
mother, ask my wife; then you will have to.
Soviet rock group, without going through
ges a year from
ask no more, 'Do the Russians want a
any government agency, and have them
r future. But not
war?'' But what of your one-time allies?
playing in Liverpool the next night. Is this
>SS the continents
What of those who embraced you on the
just a dream? Perhaps, but it is a dream
lighter, and that's
Elbe? What if we were to ask the watery
that is our responsibility to have come true.
available to this
graves of the Pacific or the European bat-
Your generation is living in one of the
00 magazines and
tlefields where America's fallen were
most exciting, hopeful times in Soviet histo-
vision and radio
buried far from home? What if we were to
ry. It is a time when the first breath of
d off a satellite in
ask their mothers, sisters, and sons, do
freedom stirs the air and the heart beats to
please us more
Americans want war? Ask us, too, and you'll
the accelerated rhythm of hope, when the
to get to know us
find the same answer, the same longing in
accumulated spiritual energies of a long si-
1 our way of life.
every heart. People do not make wars; gov-
lence yearn to break free. I am reminded of
few would have
ernments do. And no mother would ever
the famous passage near the end of Gogol's
two nations have
willingly sacrifice her sons for territorial
"Dead Souls." Comparing his nation to a
reaty, which Gen-
gain, for economic advantage, for ideology.
speeding troika, Gogol asks what will be its
687
May 31 / Administration of Ronald Reagan, 1988
destination. But he writes, "There was no
the INF treaty, we would have been able to
answer save the bell pouring forth marvel-
sign it here at this summit meeting. It is not
ous sound."
completed; there are still some points that
We do not know what the conclusion will
are being debated. We are both hopeful
be of this journey, but we're hopeful that
that it can be finished before I leave office,
the promise of reform will be fulfilled. In
which is in the coming January, but I assure
this Moscow spring, this May 1988, we may
you that if it isn't-I assure you that I will
be allowed that hope: that freedom, like the
have impressed on my successor that we
fresh green sapling planted over Tolstoy's
must carry on until it is signed. My dream
grave, will blossom forth at last in the rich
has always been that once we've started
fertile soil of your people and culture. We
down this road, we can look forward to a
may be allowed to hope that the marvelous
day-you can look forward to a day-when
sound of a new openness will keep rising
there will be no more nuclear weapons in
through, ringing through, leading to a new
the world at all.
world of reconciliation, friendship, and
peace.
Young People
Thank you all very much, and da blagos-
Q. The question is: The universities influ-
lovit vas gospod-God bless you.
ence public opinion, and the student won-
Mr. Logunov. Dear friends, Mr. President
ders how the youths have changed since
has kindly agreed to answer your questions.
the days when you were a student. up until
But since he doesn't have too much time,
now?
only 15 minutes-so, those who have ques-
The President. Well, wait a minute. How
tions, please ask them.
you have changed since the era of my own
Strategic Arms Reductions
youth?
Q. And this is a student from the history
Q. How just students have changed, the
faculty, and he says that he's happy to wel-
youth have changed. You were a student.
come you on behalf of the students of the
[Laughter] At your time there were one
university. And the first question is that the
type. How they have changed?
improvement in the relations between the
The President. Well, I know there was a
two countries has come about during your
period in our country when there was a
tenure as President, and in this regard he
very great change for the worse. When I
would like to ask the following question. It
was Governor of California, I could start a
is very important to get a handle on the
riot just by going to a campus. But that has
question of arms control and, specifically,
all changed, and I could be looking out at
the limitation of strategic arms. Do you
an American student body as well as I'm
think that it will be possible for you and the
looking out here and would not be able to
General Secretary to get a treaty on the
tell the difference between you.
limitation of strategic arms during the time
I think that back in our day-I did
that you are still President?
happen to go to school, get my college edu-
The President. Well, the arms treaty that
cation in a unique time; it was the time of
is being negotiated now is the so-called
the Great Depression, when, in a country
START treaty, and it is based on taking the
like our own, there was 25-percent unem-
intercontinental ballistic missiles and reduc-
ployment and the bottom seemed to have
ing them by half, down to parity between
fallen out of everything. But we had-I
our two countries. Now, this is a much
think what maybe I should be telling you
more complicated treaty than the INF
from my point here, because I graduated in
treaty, the intermediate-range treaty, which
1932, that I should tell you that when you
we have signed and which our two govern-
get to be my age, you're going to be sur-
ments have ratified and is now in effect. So,
prised how much you recall the feelings you
there are many things still to be settled.
had in these days here and that-how easy
You and we have had negotiators in Geneva
it is to understand the young people be-
for months working on various points of this
cause of your own having been young once.
treaty. Once we had hoped that maybe, like
You know an awful lot more about being
688
Administration of Ronald Reagan, 1988 / May 31
have been able to
young than you do about being old. [Laugh-
ernment of that nation. And leaders of an-
meeting. It is not
ter]
other-seeming the majority of the people
some points that
And I think there is a seriousness, I think
had wanted, simply, the people to have the
are both hopeful
there is a sense of responsibility that young
right to choose the government that they
ore I leave office,
people have, and I think that there is an
wanted, and that is the civil war that is
luary, but I assure
awareness on the part of most of you about
going on. But what we believe is that those
re you that I will
what you want your adulthood to be and
foreign soldiers should get out and let them
uccessor that we
what the country you live in-you want it
settle it, let the citizens of that nation settle
igned. My dream
to be. And I have a great deal of faith. I
their problems.
ce we've started
said the other day to 76 students-they
ook forward to a
were half American and half Russian. They
And the same is true in Nicaragua. Nica-
I to a day-when
had held a conference here and in Finland
ragua has been-Nicaragua made a prom-
ise. They had a dictator. There was a revo-
clear weapons in
and then in the United States, and I faced
them just the other day, and I had to say-I
lution, there was an organization that-and
couldn't tell the difference looking at them,
was aided by others in the revolution, and
which were which, but I said one line to
they appealed to the Organization of Amer-
universities influ-
them. I said I believe that if all the young
ican States for help in getting the dictator
people of the world today could get to
to step down and stop the killing. And he
the student won-
know each other, there would never be an-
did. But the Organization of American
e changed since
student up until
other war. And I think that of you. I think
States had asked, what are the goals of the
that of the other students that I've ad-
revolution? And they were given in writing,
a minute. How
dressed in other places.
and they were the goals of pluralistic socie-
And of course, I know also that you're
ty, of the right of unions and freedom of
e era of my own
young and, therefore, there are certain
speech and press and so forth and free elec-
things that at times take precedence. I'll
tions-a pluralistic society. And then the
ve changed, the
illustrate one myself. Twenty-five years
one group that was the best organized
were a student.
there were one
after I graduated, my alma mater brought
among the revolutionaries seized power,
me back to the school and gave me an hon-
exiled many of the other leaders, and has its
ed?
orary degree. And I had to tell them they
own government, which violated every one
now there was a
compounded a sense of guilt I had nursed
of the promises that had been made. And
en there was a
for 25 years because I always felt the first
here again, we want-we're trying to en-
worse. When I
degree they gave me was honorary.
courage the getting back those-or making
I could start a
[Laughter] You're great! Carry on.
those promises come true and letting the
ous. But that has
people of that particular country decide
e looking out at
Regional Conflicts
their fate.
as well as I'm
Q. Mr. President, you have just men-
4 not be able to
tioned that you welcome the efforts-settle-
Soviet MIA's in Afghanistan
you.
ment of the Afghanistan question and the
Q. Esteemed Mr. President, I'm very
our day-I did
difference of other regional conflicts. What
much anxious and concerned about the des-
my college edu-
conflicts do you mean? Central America
tiny of 310 Soviet soldiers being missing in
was the time of
conflicts, Southeast Asian, or South African?
Afghanistan. Are you willing to help in their
n, in a country
The President. Well, for example, in South
search and their return to the motherland?
-percent unem-
Africa, where Namibia has been promised
The President. Very much so. We would
seemed to have
its independence as a nation-another new
like nothing better than that.
But we had-I
African nation. But it is impossible because
I be telling you
of a civil war going on in another country
U.S. Constitution
I graduated in
there, and that civil war is being fought on
Q. The reservation of the inalienable
that when you
one side by some 30,000 to 40,000 Cuban
rights of citizens guaranteed by the Consti-
oing to be sur-
troops who have gone from the Americas
tution faces certain problems; for example,
the feelings you
over there and are fighting on one side
the right of people to have arms, or for
that-how easy
with one kind of authoritative government.
example, the problem appears, an evil ap-
ing people be-
When that country was freed from being a
pears whether spread of pornography or
en young once.
colony and given its independence, one fac-
narcotics is compatible with these rights.
re about being
tion seized power and made itself the gov-
Do you believe that these problems are just
689
May 31 / Administration of Ronald Reagan, 1988
unavoidable problems connected with de-
tocracy. Well, succeeding Presidents-many
mocracy, or they could be avoided?
of them didn't get a chance at a second
The President. Well, if I understand you
term; they did one term and were gone.
correctly, this is a question about the in-
But that tradition kind of remained, but it
alienable rights of the people-does that in-
was just a tradition. And then Roosevelt ran
clude the right to do criminal acts-for ex-
the four times-died very early in his fourth
ample, in the use of drugs and so forth? No.
term. And suddenly, in the atmosphere at
No, we have a set of laws. I think what is
that time, they added an amendment to the
significant and different about our system is
Constitution that Presidents could only
that every country has a constitution, and
serve two terms.
most constitutions or practically all of the
When I get out of office-I can't do this
constitutions in the world are documents in
while I'm in office, because it will look as
which the government tells the people
I'm selfishly doing it for myself-when I get
what the people can do. Our Constitution is
out of office, I'm going to travel around
different, and the difference is in three
what I call the mashed-potato circuit-that
words; it almost escapes everyone. The
is the after-dinner speaking and the speak-
three words are, "We the people." Our
ing to luncheon groups and so forth-I'm
Constitution is a document in which we the
going to travel around and try to convince
people tell the Government what its powers
the people of our country that they should
are. And it can have no powers other than
wipe out that amendment to the Constitu-
those listed in that document. But very
tion because it was an interference with the
carefully, at the same time, the people give
the government the power with regard to
democratic rights of the people. The people
those things which they think would be de-
should be allowed to vote for who they
structive to society, to the family, to the
wanted to vote for, for as many times as
individual and so forth-infringements on
they want to vote for him; and that it is
their rights. And thus, the government can
they who are being denied a right. But you
enforce the laws. But that has all been dic-
see, I will no longer be President then, so I
can do that and talk for that.
tated by the people.
There are a few other things I'm going to
President's Retirement Plans
try to convince the people to impress upon
Q. Mr. President, from history I know
our Congress, the things that should be
that people who have been connected with
done. I've always described it that if-in
great power, with big posts, say goodbye,
Hollywood, when I was there, if you didn't
leave these posts with great difficulty. Since
sing or dance, you wound up as an after-
your term of office is coming to an end,
dinner speaker. And I didn't sing or dance.
what sentiments do you experience and
[Laughter] So, I have a hunch that I will be
whether you feel like, if, hypothetically, you
out on the speaking circuit, telling about a
can just stay for another term? [Laughter]
few things that I didn't get done in govern-
The President. Well, I'll tell you some-
ment, but urging the people to tell the
thing. I think it was a kind of revenge
Congress they wanted them done.
against Franklin Delano Roosevelt, who was
American Indians
elected four times-the only President.
There had kind of grown a tradition in our
Q. Mr. President, I've heard that a group
country about two terms. That tradition was
of American Indians have come here be-
started by Washington, our first President,
cause they couldn't meet you in the United
only because there was great talk at the
States of America. If you fail to meet them
formation of our country that we might
here, will you be able to correct it and to
become a monarchy, and we had just freed
meet them back in the United States?
ourselves from a monarchy. So, when the
The President. I didn't know that they
second term was over, George Washington
had asked to see me. If they've come here
stepped down and said he would do it--
or whether to see them there-{laughter}-
stepping down-so that there would not get
I'd be very happy to see them.
to be the kind of idea of an inherited aris-
Let me tell you just a little something
690
Administration of Ronald Reagan, 1988 / May 31
Presidents-many
about the American Indian in our land. We
become a Frenchman; you can go to live in
ance at a second
have provided millions of acres of land for
Germany, you cannot become a German-
and were gone.
what are called preservations-or reserva-
or a Turk, or a Greek, or whatever. But he
remained, but it
tions, I should say. They, from the begin-
said anyone, from any corner of the world,
hen Roosevelt ran
ning, announced that they wanted to main-
can come to live in America and become an
early in his fourth
tain their way of life, as they had always
American.
he atmosphere at
lived there in the desert and the plains and
You have to realize that we are a people
amendment to the
so forth. And we set up these reservations
that are made up of every strain, national-
lents could only
so they could, and have a Bureau of Indian
ity, and race of the world. And the result is
Affairs to help take care of them. At the
that when people in our country think
e-I can't do this
same time, we provide education for
someone is being mistreated or treated un-
them-schools on the reservations. And
ise it will look as
justly in another country, these are people
yself-when I get
they're free also to leave the reservations
who still feel that kinship to that country
and be American citizens among the rest of
to travel around
because that is their heritage. In America,
otato circuit-that
us, and many do. Some still prefer, howev-
whenever you meet someone new and
er, that way-that early way of life. And
ig and the speak-
become friends, one of the first things you
we've done everything we can to meet
and so forth-I'm
tell each other is what your bloodline is. For
their demands as to how they want to live.
d try to convince
example, when I'm asked, I have to say
Maybe we made a mistake. Maybe we
that they should
Irish, English, and Scotch-English and
should not have humored them in that
t to the Constitu-
Scotch on my mother's side, Irish on my
wanting to stay in that kind of primitive
erference with the
father's side. But all of them have that.
lifestyle. Maybe we should have said, no,
eople. The people
Well, when you take on to yourself a
come join us; be citizens along with the rest
te for who they
of us. As I say, many have; many have been
wife, you do not stop loving your mother.
as many times as
So, Americans all feel a kind of a kinship to
very successful.
im; and that it is
And I'm very pleased to meet with them,
that country that their parents or their
d a right. But you
talk with them at any time and see what
grandparents or even some great-grandpar-
resident then, so I
their grievances are or what they feel they
ents came from; you don't lose that contact.
at.
might be. And you'd be surprised: Some of
So, what I have come and what I have
hings I'm going to
them became very wealthy because some of
brought to the General Secretary-and I
to impress upon
those reservations were overlaying great
must say he has been very cooperative
S that should be
pools of oil, and you can get very rich
about it-I have brought lists of names that
bed it that if-in
pumping oil. And so, I don't know what
have been brought to me from people that
here, if you didn't
are relatives or friends that know that-or
their complaint might be.
d up as an after-
that believe that this individual is being
'n't sing or dance.
Soviet Dissidents
mistreated here in this country, and they
anch that I will be
Q. Mr. President, I'm very much tanta-
want him to be allowed to emigrate to our
it, telling about a
lized since yesterday evening by the ques-
country-some are separated families.
.t done in govern-
tion, why did you receive yesterday-did
One that I met in this, the other day, was
eople to tell the
you receive and when you invite yester-
born the same time I was. He was born of
m done.
day-refuseniks or dissidents? And for the
Russian parents who had moved to Amer-
second part of the question is, just what are
ica, oh, way back in the early 1900's, and he
your impressions from Soviet people? And
was born in 1911. And then sometime later,
leard that a group
among these dissidents, you have invited a
the family moved back to Russia. Now he's
e come here be-
former collaborator with a Fascist, who was
grown, has a son. He's an American citizen.
you in the United
a policeman serving for Fascist.
But they wanted to go back to America and
fail to meet them
The President. Well, that's one I don't
being denied on the grounds that, well,
correct it and to
know about, or maybe the information
they can go back to America, but his son
ited States?
hasn't been all given out on that. But you
married a Russian young lady, and they
know that they
have to understand that Americans come
want to keep her from going back. Well,
hey've come here
from every corner of the world. I received
the whole family said, no, we're not going
here-{laughter}-
a letter from a man that called something
to leave her alone here. She's a member of
hem.
to my attention recently. He said, you can
the family now. Well, that kind of a case is
little something
go to live in France, but you cannot
brought to me personally, so I bring it to
691
May 31 / Administration of Ronald Reagan, 1988
the General Secretary. And as I say, I must
not be President anymore. I have some un-
say, he has been most helpful and most
derstanding, because after I'd been Gover-
agreeable about correcting these things.
nor for 8 years and then stepped down, I
Now, I'm not blaming you; I'm blaming
want to tell you what it's like. We'd only
bureaucracy. We have the same type of
been home a few days, and someone invit-
thing happen in our own country. And
ed us out to dinner. Nancy and I both went
every once in a while, somebody has to get
out, got in the back seat of the car, and
the bureaucracy by the neck and shake it
waited for somebody to get in front and
loose and say, Stop doing what you're doing!
drive us. [Laughter]
And this is the type of thing and the names
that we have brought. And it is a list of
[At this point, Rector Logunov gave the
names, all of which have been brought to
President a gift.]
me personally by either relatives or close
That is beautiful. Thank you very much.
friends and associates. [Applause]
Thank you very much. You're all very
Note: The President spoke at 4:10 p.m. in
kind. I thank you very much. And I hope I
the Lecture Hall at Moscow State Universi-
answered the questions correctly. Nobody
ty. Anatoliy A. Logunov was rector of the
asked me what it was going to feel like to
university.
Toasts at a State Dinner Hosted by the President at Spaso House in
Moscow
May 31, 1988
The President. Mr. General Secretary,
of a passage in a book about your country
Mrs. Gorbachev, distinguished guests and
by Laurens Van der Post. Especially struck
friends, it's a pleasure to host all of you
by the city's churches, Van der Post wrote
tonight and to reciprocate, in a small way,
that when he caught his first sight of the
the hospitality you lavished upon us yester-
Moscow skyline he saw "the light of an un-
day evening. While the General Secretary
usually pure evening upon it. That light was
and I had already held three meetings
alchemical, and it transformed Moscow into
before this one began here in Moscow, each
a city of gold. The tops of the spires and
of those earlier encounters took place in the
pinnacles drawing the rigid forms of the
autumn. The days were growing short, the
skyscrapers after them into arrows of gold
weather ever grayer and colder. It makes
aimed at the arched and timeless blue." So,
for a bracing, delightful change to have this
we, too, have found Moscow a city of beau-
meeting take place at the high point of
ties. A city, especially, whose pinnacles and
spring, a time of long, light-filled days.
spires reminded one at virtually every turn
I know that Nancy found her springtime
of man's ancient capacity for aspiration, for
visit to Leningrad earlier today both mag-
reaching out toward the light.
nificent and moving. The play of light upon
It's a particular pleasure to be able to
the rivers and canals added the special
welcome you to Spaso House-a house of
splendor of the season to a city splendid in
considerable beauty in its own right-the
any season. And everywhere, Nancy has
residence of our Ambassadors to the Soviet
told me, there was a sense of history, espe-
Union. During the 55 years of diplomatic
cially of Leningrad's immense courage and
relations between our two nations, Spaso
sacrifice during the Second World War,
House has served as one of the principal
surely one of the most stirring epics in the
settings for exchanges between us-ex-
whole human story.
changes formal and informal alike. There
Here in Moscow, I've been reminded a
have been some splendid moments within
number of times during this springtime visit
these walls. Prokofiev once conducted his
692
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Memo
Joe Duggan to David Demarest, re: Howard Jarvis Taxpayers
06/09/92
P.S
Association Speech. (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Speechwriting, White House Office of
Series:
Speech File, Backup
Open on Expiration of PRA
Subseries:
(Document Follows)
WHORM Cat.:
By (NLGB) on 4/5/2005
File Location:
Jarvis Tax Reform 6/20/92 [3]
Date Closed:
12/1/2004
OA/ID Number:
07575
FOIA/SYS Case #:
Re-review Case #:
2004-2265-S
P-2/P-5 Review Case #:
MR Case #:
Appeal Case #:
MR Disposition:
Appeal Disposition:
Disposition Date:
Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRA]
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advise between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
June 9, 1992
TO:
David Demarest
FROM:
Joe Duggan
SUBJECT: Howard Jarvis Taxpayers Association Speech
I would like you to clear the air for me on how to
proceed with this speech.
I spent yesterday working under guidance that the President
would be endorsing Pete Wilson's ballot initiative/legislation
for California welfare reform. Then last night Leigh Ann Metzger
and Dan Casse told me that Wilson's office does not want the
President explicitly to endorse the plan. Moreover, I could not
get from Casse anything new or bold in policy worth making the
basis of a speech. Are the highest level people working on
something big and close-hold for this event?
If not, the speech should be a limited government/tax
limitation speech, showcasing the balanced budget amendment, the
line-item veto, and regulatory reform. Joel Fox, the head of the
Jarvis group, told me these are higher priorities to his
membership than welfare reform. The Jarvis group does support
Wilson's welfare reform plans -- indeed an audience of Jarvis
members responded favorably when Wilson gave them a recent
presentation on welfare. But it is important to keep in mind
that welfare as such is not a central issue to these people.
Taxes, spending, and big government need to be addressed head-on
with this audience.
The Jarvis association members are mostly senior citizens,
homeowners who want to preserve the gains they made through
Proposition 13. A scientific poll of Jarvis members early this
year showed them standing fast with Bush against Buchanan -- by
about 82%-12%. An unscientific survey of Jarvis members
(voluntary responses to direct mail) showed warning signs: 34%
Bush; 27% Perot; 7% Buchanan; 6% Clinton; 5% Brown.
PAGE
10
2ND STORY of Level 1 printed in FULL format.
Copyright 1992 The Chronicle Publishing Co.
The San Francisco Chronicle
MAY 21, 1992, THURSDAY, FINAL EDITION
SECTION: NEWS; Pg. D7
LENGTH: 505 words
HEADLINE: S.F. Schools Face 'Calamity'
New superintendent warns of $ 23 million budget shortage
BYLINE: Nanette Asimov, Chronicle Staff Writer
BODY:
Bill Rojas, San Francisco's -incoming school superintendent, said yesterday
that California's worsening financial crisis is creating a ''fiscal calamity''
in city schools, and proposed an array of cuts for next year to make up an
anticipated loss of $ 23 million in the education budget.
The proposed cuts include laying off more than 60 teachers, increasing class
size, closing the district's popular public radio station KALW-FM, and declining
to fill nearly 100 vacant positions ranging from gardeners and custodians to
secretaries and library assistants.
''These are frightening times for the state of California, Rojas wrote in
the 27-page draft proposal, in which he called on the 'citizenry of San
Francisco to step forward'' and help out the schools.
Although Rojas will not officially become superintendent until August 1, he
has been given the authority to run the district while Superintendent Ramon
Cortines is out of town.
In addition, he has been preparing his budget proposal in anticipation of
what he called California's 'worst financial condition since the Great
Depression 60 years ago.
Rojas and budget director Bob Golton assume that the worst-case scenario is
the most likely for San Francisco schools: that they will not receive a
cost-of-living increase from the state nor have access to $ 17.5 million that
educators had hoped to reap from a quarter- cent county sales tax increase for
education implemented in February.
The tax money would wipe out much of the district's budget problems,
according to the report. But a lawsuit by the Howard Jarvis Taxpayers
Association, supported by independent state Senator Quentin Kopp of San
Francisco, seeks to nullify the tax on the grounds that it conflicts with
Proposition 13. On May 7, the Sacramento Superior Court issued a temporary
freeze on the money until the suit is resolved. The money may eventually be
returned to taxpayers.
''Mr. Rojas is inheriting a whirlwind, said Joan-Marie Shelley, president
of the United Educators of San Francisco. ''The problem is much bigger than he
is. But I find it very hard to believe that any teachers have to be laid off
after so many people took early retirement this year.
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The San Francisco Chronicle, MAY 21, 1992
More than 100 employees left in February under the incentive plan.
In his report, Rojas said that the district can no longer afford the $
148,000 it takes to run its radio station KALW, which broadcasts the school
board's semi-monthly meetings. He said the station ''provides no direct
educational experiences to
students.
Daniel Del Solar, manager of KALW, said he was 'floored and surprised'' at
the news that the 51- year-old station may close, and said that the station's
100,000 weekly listeners had yet to be heard from on the matter.
''I understand that the district has tremendous financial pressures, he
said. ''I am disappointed that we (station employees) haven't been brought into
discussions about ways to keep it operating. It's disappointing.'
SUBJECT:
SF; SCHOOLS; EDUCATION; OFFICIALS; BUDGET; FINANCE; REACTION; CA; STATE BUDGET;
LAYOFF
NAME:
Bill Rojas; S.F. Superintendent of Public Instruction
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4TH STORY of Level 1 printed in FULL format.
Copyright 1992 The Washington Post
The Washington Post
May 2, 1992, Saturday, Final Edition
SECTION: REAL ESTATE; PAGE E1
LENGTH: 1045 words
HEADLINE: California's Tax Reform Faces Test;
High Court Case Has National Implications
SERIES: Occasional
BYLINE: Jacqueline L. Salmon, Washington Post Staff Writer
BODY:
When attorney Stephanie Nordlinger purchased her modest bungalow in the
Baldwin Hills neighborhood of Los Angeles, she didn't know that she would end up
in the forefront of a challenge to the California tax revolt that swept the
state in 1978.
But that was before she discovered that her property taxes were more than
four times higher than some of her neighbors.
"I knew how much I was paying," Nordlinger said. "But I didn't know how
little everyone else was paying."
That discovery has led Nordlinger all the way to the Supreme Court. In
February, it heard her case challenging the constitutionality of Proposition
13, the landmark law that California voters passed in 1978 to halt rapidly
escalating property taxes. While Proposition 13 rolled back taxes for longtime
property owners, newcomers to the state must pay property taxes that are as much
as 15 times higher.
Nordlinger and others who support her say the property tax system is unfair
and violates the equal-protection clause of the 14th Amendment. And its effect
is to force newcomers to foot the bill for public services that also are being
used by longtime property owners.
"There is no rational basis for this particular [method]," Nordlinger said,
"except 'We've got ours and now we want you to pay for it. =
Joel Fox, president of the Howard Jarvis Taxpayers Association, the
successor to the group that sparked the anti-tax fervor leading to Proposition
13, disagrees.
"The people who have been here [in Californial a long time - they've been
paying into the system that has paid for the roads, the government services, the
schools all these years," Fox said.
In its response to the lawsuit, California has argued that its tax system is
not unconstitutional. In fact, it said, its system may be fairer than other
states' systems because it taxes property based on its value when the property
is purchased, rather than assessing it periodically and then taxing property
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The Washington Post, May 2, 1992
owners on "an unrealized gain in value" of their property.
The Supreme Court is expected to make a ruling in the next few months.
Nordlinger has been rebuffed at lower court levels, and most legal scholars
doubt that the Supreme Court will overturn the law. But the mere possibility has
set off alarm bells in California, which is struggling with an economic
downturn. Longtime property owners would face soaring tax bills if Nordlinger
wins.
In the unlikely event that Proposition 13 were to be overturned, the
implications on the national level are huge, said Ferdinand Schoettle, a
University of Minnesota law professor and an authority on state and local taxes.
Tax systems or financing systems that divide taxpayers or recipients into
classes would all be vulnerable, Schoettle said. The capital gains tax,
school-financing formulas, even the federal system for financing Medicaid would
be "up for grabs," he said.
"The implications for constitutional scrutiny of the federal tax system would
be extraordinary," Schoettle said.
Under Proposition 13, tax assessments in California are limited to 1
percent of a property's assessed value and increases are limited to 2 percent a
year.
For properties bought before the measure was passed in 1978, the value of a
property was rolled back to the 1975 level. For properties bought after 1978,
the assessed value is determined by the selling price.
The effect of this provision, known scornfully as the "welcome stranger"
measure, has been to produce enormous disparities in the taxes paid by
California residents.
The taxes on Nordlinger's $ 170,000 home, for example, totaled $ 1,700 in the
year she bought it, while some of her neighbors who bought before 1978 were
paying taxes as low as $ 400.
"That doesn't have any relationship to what you can afford to pay, nor does
it have any relationship to the kinds of services you get from the government,"
Nordlinger said, adding, "I get the same services that my neighbors who pay $
400 a year get."
In the beach community of Venice, a $ 335,000 house purchased recently had
property taxes of $ 3,350 a year, while a comparable house nearby bought before
1975 had property taxes of $ 260.
In Beverly Hills, the owner of a $ 3.8 million mansion paid $ 38,000 a year
in property taxes, while the owner of a similar house purchased before 1975 paid
only $ 3,230 in the same year.
A California Senate commission study has shown that if Proposition 13 is
thrown out, the state would rake in an additional $ 11 billion in revenue from
longtime property owners. It would be a "huge, massive property tax increase in
the state of California," Fox warned.
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The Washington Post, May 2, 1992
To avoid this politically explosive windfall of money in a year of taxpayers'
rebellions, the Senate commission recommended cutting the property tax rate on
homes, but taxing business property at full market value to make up for it. That
hasn't sat very well with California businesses, which, a recent study showed,
already have one of the highest tax burdens in the country.
Nordlinger's lawsuit has drawn support from some far-flung groups, including
home builders, who have been hit with ever-higher development fees by
jurisdictions seeking alternative sources of revenue.
The California Association of Home Builders has estimated that development
fees for such items as schools, roads, police cars, fire stations and freeway
interchanges add an average of $ 20,000 to $ 25,000 to the price of a new home
in California.
In San Jose, development fees can soar as high as $ 60,000 per house in some
subdivisions, according to Dwight Hansen, a lobbyist for the builders'
association. The effect has been to jack up already soaring home prices and to
exacerbate several housing affordability problem in California. It also means
"service for an entire community is being funded by a small percentage of the
population," Hansen said.
"The public continues to demand services, and rightfully so," he said. "But
we now have a system where they don't have to pay for these services."
Nordlinger's challenge of Proposition 13 hasn't made her very popular with
neighbors who might face sharply higher property tax bills if she wins her case.
She declined to be photographed with her house, for example, fearing that it
would only inflame matters.
GRAPHIC: PHOTO, ATTORNEY STEPHANIE NORDLINGER WORKS IN THE YARD OF HER HOME IN
THE BALDWIN HILLS NEIGHBORHOOD OF LOS ANGELES. ADRIENNE HELITZER FOR TWP
TYPE: NATIONAL NEWS
SUBJECT: CALIFORNIA; TAX ASSESSMENTS; LAWSUITS
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50TH STORY of Level 1 printed in FULL format.
Copyright 1986 States News Service
States News Service
September 9, 1986, Tuesday
LENGTH: 740 words
BYLINE: By Cheryl Romo, States News Service
DATELINE: WASHINGTON
KEYWORD: nobel
BODY:
As the result of a controversial tax overhaul plan, the United States may
soon become the only country in the world that taxes the cash given to Nobel
Prize recipients.
Under current law, Nobel recipients are not taxed on the award money as long
as they did not nominate themselves for the award and perform no service in
exchange. Passage of the new tax regulations are being regarded as a virtual
certainty by most observers.
The tax package is expected to reach President Reagan's desk later this
month. Under the proposed provisions, the award, approximately $289,855 in 1986,
will be taxable as income unless the recipient donates the entire prize to a
university or other institution for research. The change will effect next
year's Nobel laureates.
Although the Nobel Prize is not singled out, the award falls under the
category of prizes and awards that, for the first time, will be considered
taxable income. "In the quest to broaden the tax base we have to bring all
income in," said John Sherman, a spokesman for the House Ways and Means
Committee.
"As far as we know the United States will be the only country to tax
winners," says Nancy Abramowitz of Arnold & Porter, the law firm that represents
the Nobel Foundation in the Capital. "The foundation would have preferred to
see it otherwise."
Public opinion regarding the proposed tax change, which will take effect in
1987, is sharply divided. Some see it as an insult to the meaning of the Nobel
Prize, while others see it as a part of a national trend to treat all sources of
taxable income in a more equitable fashion.
"I think it's scandalous and petty," said Allan Cormack, a physicist at Tufts
University who, in 1979, shared a Nobel Prize in medicine and physiology. "It
diminishes the prestige of the United States government that they would pinch 45
percent of it."
Harvard University physicist Sheldon Glashow, another co-winner in 1979 for
physics research, feels the tax proposal is "very bizarre and tasteless." He and
other recipients received letters from the Nobel Foundation earlier this year
protesting the proposed taxation as a lack of national respect for potential
winners.
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PAGE 29
States News Service, September 9, 1986
"You don't do things like that," said Glashow, adding that most American
laureates would not take kindly to the change.
In addition to the cash award, a spokeswoman at Swedish Embassy said winners
also receive a certificate and gold medal presented by Swedish King Carl XVI in
Stockholm December 10. The peace prize will be awarded in Oslo, Norway.
Winners in medicine, peace, physics and chemistry, and economics will be
announced in mid-October. No date has been set yet to announce the literature
award, said the spokeswoman.
Those in the United States who feel all sources of income ought to be taxed,
including unemployment compensation and social security benefits in some cases,
are part of a national movement spawned a decade ago by a crusty gadfly named
Howard Jarvis, who died recently in California. Jarvis was the father of
what has come to be called the "Proposition 13 Tax Revolt."
The movement spread like prairie fire from California across the United
States and led to the organization of "citizens committees," such as the
National Tax Limitation Committee, headquartered in the nation's capital. John
Davis, legislative representative for the group which boasts some 800,000
individual and 300, corporate members, feels that it is somewhat unfortunate
that the Nobel Prize cash awards will be taxed.
"It does seem inflammatory," he said, adding that there is a slight
possibility that the tax "could be excluded" for such "a high honor" as the
Nobel Prize before the tax revision package reaches President Reagan's desk for
approval.
But other "tax revolters," such as David Keating, executive vice president of
the National Taxpayers Union, don't feel the Nobel Prize should be given special
treatment.
"Part of the whole idea of the (tax) bill is to treat all sources of income
more equally," said Keating. "It seems reasonable that prizes and awards for
scientific and other achievement would be taxable as well."
Keating further stated that his 150,000 member organization is only concerned
with curbing government taxes and spending and worked actively to promote the
tax reform bill. "People need to remember," he said, "that the United States is
one of the few countries that (will tax) income no higher than 28 percent."
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