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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Grant, Mary Kate, Files Subseries: Subject File, 1988-1991 OA/ID Number: 13882 Folder ID Number: 13882-006 Folder Title: Susan Molinari Fundraiser, 2/28/90 Stack: Row: Section: Shelf: Position: G 19 2 7 7 FEB 26 '90 16:20 SEN B RUSSELL 15/24 Center for Governmental Research inc. M.K. Table 3 NEW YORK AND THE FIVE HIGHEST TAXING STATES, 1988 NEW YORK AND ITS NEIGHBORS, 1988 All State-Local Taxes All State-Local Taxes $Per Cap Index 1. New York 2,934 165.5 $Per Cap Index 2. Connecticut New York 2,281 128.7 2,934 165.5 3. Hawaii Connecticut 2.259 127.4 2.281 128.7 4. New Jersey New Jersey 2,217 2.217 125.1 125.1 S. Massachusetts Massachusetts 2.160 121.9 2,160 121.9 Vermont 1.663 105.1 Pennsylvania 1,627 91.8 Property Taxes Property Taxes $Per Cap Index 1. New Hampshire 936 174.0 $Per Cap Index 2. New Jersey New Jersey 933 933 173.4 173.4 3. Wyoming Connecticut 915 911 170.1 169.3 4. Connecticut New York 911 860 159.3 159.8 5. New York Vermont 860 750 159.8 139.5 Massachusetts 691 128.4 Pennsylvania 439 81.7 General Sales Taxes General Sales Taxes $Per Cap Index 1. Washington $Per Cap 863 Index 201.8 Connecticut 2. Hawaii 614 838 143.4 195.8 New York 3. Connecticut 570 614 133.2 143.4 4. Arizona New Jersey 406 588 95.0 137.3 Massachusetts 5. New Mexico 343 582 80.2 136.0 Pennsylvania 6. New York 321 74.9 570 133.2 Vermont 222 $1.8 State Personal income Taxes State Personal income Taxes $Per Cap Index 1. New York $Per Cap Index 758 230.7 New York 758 2. Massachusetts 230.7 677 206.0 Massachusetts 677 3. Minnesota 206.0 610 185.6 New Jersey 331 4. Delaware 100.9 572 174.3 Vermont S. Hawaii 362 110.2 570 173.5 Pennsylvania 234 71.2 Connecticut 109 33.2 State Corporate Income Taxes State Corporate Income Taxes $Per Cap Index 1. Michigan $Per Cap Index 201 226.1 Connecticut 2. Connecticut 186 209.3 186 209.3 Massachusetts 3. Massachusetts 181 204.2 181 204.2 New Jersey 4. Delaware 153 172.3 181 203.5 New York 5. California 121 136.5 169 190.1 Pennsylvania 8. New York 87 98.2 121 136.5 Vermont 80 90.3 All Other Taxes All Other Taxes $Per Cap Index 1. Dalaware $Per Cap Index 841 216.1 New York 2. Nevada 625 749 160.6 192.5 Pennsylvania 3. Wyoming 547 736 140.4 188.9 Connecticut 4. Maryland 461 683 118.5 175.5 Vermont 5. New York 393 625 101.0 160.6 New Jersey 393 101.0 Massachusetts 268 68.9 Note: Indexes are calculated from unrounded figures Source: U.S. Department of Commerce, Preliminary Data -8- FEB 26 '90 16:21 SEN B RUSSELL P.16/24 CENTER FOR GOVERNMENTAL RESEARCH INC. from neighboring states.* According to the most recent data from the N.Y. State Department of Taxation and Finance, only 7.9 percent of New York State's personal income tax liability is attributable to non-residents' earnings in New York State. This figure must then be reduced by an unknown percentage to account for New York residents earning their incomes in other states. The net figure may or may not be larger than the corresponding figures for other states, but even adjusting New York's figure downward by the entire in-commuter percentage would still leave it above next-ranking Massachusetts. As shown in table 3, New York also ranks among the five highest taxing states in property taxation and in the "all other taxes" category; its sales tax burden ranks sixth, and its corporate income tax burden ranks eighth. A comparison of New York's tax burdens with those of its neighboring states, also shown in table 3, finds New York far ahead in terms of total taxes per capita, with big leads in the state personal income tax and "all other taxes" categories, among the highest states in property and sales taxes, and in an average position with regard to corporate income taxation. Other Studies of Earned Income Taxation The Revenue Department of the State of Minnesota has just published a study of earned income taxation, including the calculation of tax liabilities for eight types of households by ten income brackets in each state with a tax on earned income. Table 4 shows the results of some of these calculations. While awaiting the full report providing study methodology and assumptions, some preliminary observations are in order. Which add to tax collections without being included in the denominator of the per capita fraction. -9- FEB 26 '90 16:21 SEN B RUSSELL Center for Governmental Research Inc. Table 4 STATE TAXES ON EARNED INCOME FOR SELECTED TYPES OF FILERS, 1988 Single Earning Two-Income Marrieds Earning $35.000 $50.000 $75,000 $100,000 STaxes Index STaxes Index STaxes Index STaxes Index Alabama 1,118 97.7 1.598 112.4 2,373 96.8 3,149 89.9 Alaska 0 0.0 0 0,0 0 0.0 0 0.0 Arizona 1,300 112.9 1,684 117.0 2,633 107.4 3.801 102.8 Arkansas 1,372 119.1 1,686 118.5 3.058 124.7 4,461 127.4 California 1.455 126.3 1,350 94.9 3,198 130.4 5,151 147.1 Colorado 1,268 110.1 1,558 109.5 2,535 103.4 3.510 100.2 Connecticut 0 0.0 0 0.0 0 0.0 o 0.0 Delaware 1,497 130.0 1,750 123.0 3,219 131.3 4,752 135.7 Dist of Columbia 2,196 190.7 2.691 189.2 4,595 187.4 6,591 186.2 Florida 0 0.0 0 0.0 0 0.0 0 0.0 Georgia 1.484 128.9 1,900 133.6 3,180 128,8 4,420 126.2 Hawaii 2,416 209.8 2.854 200.7 4,949 201.8 7,049 201.3 Idaho 2,000 173.7 2,290 161.0 3,988 162.6 5.710 163.1 Illinois 850 73.8 1,150 80.9 1,775 72.4 2,400 68.5 indiana 1,756 100.4 1,564 110.0 2,414 98.4 3,264 93.2 lowa 1,413 122.7 1,877 132.0 3,145 128.2 4,401 125.7 Kansas 1,319 114.5 1,386 97.5 2,489 101.5 3.602 102.9 Kentucky 1,259 109.3 1,710 120.2 2,679 109.2 3,575 102.1 Lousiana 735 63.8 945 66.4 1,505 61.4 2,065 59.0 Maine 1,859 161.4 2,282 160.5 3,960 161.5 5,640 161.1 Maryland 2,040 177.1 2,870 187.7 4,245 173.1 5,820 166.2 Massachusetts 1,539 133.6 2,024 142.3 3,248 132.4 4,480 127.9 Michigan 1,527 132.6 1,969 138,4 3,119 127.2 4,269 121.9 Minnesota 1,936 158.1 2,360 165.9 4,036 164.6 5,720 163.3 Mississippi 1,020 88.6 1,175 82.6 2,225 90.7 3,275 93.5 Missouri 1,180 102.5 1,586 111.5 2,518 102.7 3,450 98.5 Montana 1,617 140.4 1,916 134,7 3,445 140.5 4,981 142.2 Nebraska 1,093 94.9 1,323 93.0 2,492 101.6 3.731 106.5 Nevada 0 0.0 0 0.0 o 0.0 O 0.0 New Hampshire 0 0.0 0 0.0 0 0.0 0 0.0 New Jersey 750 65.1 1,050 73.8 1,885 76.9 2,760 78.8 New Mexico 1,215 105.5 1,473 103.6 2,955 120.5 4,668 133.3 New York 2,029 176.2 2,439 171.5 4.237 172.8 5,998 171.2 North Carolina 1,781 152.9 2,157 151.7 3,627 147.9 5,097 145.5 North Dakota 670 58.2 683 48.0 1,448 59.0 2.210 63.1 Ohio 1,066 92.6 1,396 98.2 2,648 108.0 4,150 118.5 Oklahoma 1,449 125.8 1,770 124.5 3,030 123.5 4,290 122.5 Oregon 2,147 186.4 2,874 202.1 4,764 194.3 6,654 190.0 Pennsylvania 735 63.8 1,050 73.8 1,575 64.2 2,100 60.0 Rhode Island 1,099 95.4 1,120 78.8 2,372 96.7 3,625 103.5 South Carolina 1,642 142.6 2,013 141.5 3,430 139.9 4,848 138.4 South Dakota o O.O o 0.0 0 0.0 0 0.0 Tennessee o 0.0 0 0.0 0 0.0 0 0.0 Texas 0 0.0 0 0.0 0 0.0 0 0.0 Utah 1,831 159.0 2,325 163.5 3.737 152.4 5,148 147.0 Vermont 1,101 95.6 1,121 78.8 2,376 96.9 3,631 103.7 Virginia 1,403 121.8 1,754 123.3 2,954 120.4 4,162 118.8 Washington 0 0.0 0 0.0 0 0.0 0 0.0 West Virginia 1,260 109.4 1,697 119.3 3,230 131.7 4,855 138.6 Wisconsin 1,930 167.6 2,332 164.0 3,810 155.4 5,339 152.5 Wyoming o 0.0 o 0.0 0 0.0 0 0.0 U.S. Average 1,152 100.0 1,422 100.0 2,452 100.0 3,502 100.0 U.S. Median 1,260 109.4 1,588 111.5 2,679 109.2 3,731 106.5 Source: Minnesota Department of Revenue, Comparison of the 1988 Individual Income Tax Burdens by State, 1989 -10- FEB 26 '90 16:22 SEN B RUSSELL P.18/24 CENTER FOR GOVERNMENTAL RESEARCH INC. New York's tax liabilities rank third or fourth among all states in each of the four earner classes, exceeding the U.S. averages by 71.2 to 76.2 percent. The reasons why these disparities are less than the per capita tax disparity of 130.7 percent may be attributable to such factors as: (1) the exclusion of non-earned income taxes from the Minnesota calculations, and (2) the fact that New York's per capita personal income is 17.1 percent above the U.S. figure, indicating that relatively larger numbers of New Yorkers are in higher yield tax brackets. The Minnesota finding that Hawaii, Oregon, and in three cases Maryland, exceed New Yorkers' tax liabilities, while per capita state personal income tax figures show them ranking below New York, may again be attributable to the difference in tax base definition (earned vs. total personal income), the fact that New Yorkers' per capita income is far above that of Hawaii (15.2 percent) and Oregon (29.6%), and that the Maryland figure most likely includes piggy-back local income taxes. It should be noted that New York's reputation as a high tax state was once again given nationwide publicity. The January 1990 issue of Money Magazine carried a feature on "tax havens" and "tax hells," which also used the Minnesota study findings, and clearly branded New York as one of the nation's tax hells. Mercifully, the Money Magazine tabulations did not include property tax figures, which would have made New York's relative position even worse. -11- FEB 26 '90 16:22 SEN B RUSSELL P.19/24 CENTER FOR GOVERNMENTAL RESEARCH INC. GOVERNMENTAL SPENDING New York's State and Local Governmental Spending New York's high taxes are a function of correspondingly high governmental expenditures. As shown in Table 5, preliminary 1988 spending figures, shortly to be released by the U.S. Department of Commerce, show total New York per capita spending at $4,200: 47.0 percent above the national average of $2,857, and 21.0 percent above next-highest ranking Minnesota with per capita expenditures of $3,470. The disparity versus the national average in the preceding year was 44.7 percent. ACIR's New Measure of Governmental Spending According to a new study by the Advisory Commission on Intergovern- mental Relations, New York's state and local governmental spending is 52.4 percent above what it should be if New York governments were to spend the same amounts per standardized need unit (adjusted for interstate input cost differentials) that are expended by all state and local governments in the U.S. as a whole. Traditional interstate comparisons of state and local governmental spending involve the use of per capita figures (see column 3 of Table 5) or measures of the relationship between spending and personal income. Both of these measures have limitations. The per capita figures fail to take into account variations in the individual states' costs-of-living and in the numbers of need units being served. The personal income related measure erroneously implies the existence of a causal relationship between wealth and governmental spending needs. -12- FEB 26 '90 16:23 SEN B RUSSELL P.20/24 Center for Governmental Research Inc. Table 5 ACTUAL PER CAPITA STATE-LOCAL GOVERNMENTAL SPENDING AND THE ACIR REPRESENTATIVE EXPENDITURE INDEX 1987 Representative Expenditure System 1988 Actual Actual Representative Actual as Per Capita Exp Per Capita Exp Expenditure System Percent of $ Index Index Index (RES) RES Alabama 2,230 78.1 77.3 108.8 71.0 Alaska 9,546 334.2 370.7 121.3 305.6 Arizona 2.980 104.3 104.4 102.6 101.8 Arkansas 1,948 68.2 71.0 106,0 67.0 California 3,240 113.4 113.9 101.3 112.4 Colorado 2,889 101.1 105.6 98.1 107.6 Connecticut 3,284 114.3 108.9 91.7 118.8 Delaware 3.294 115.3 111.3 98.1 115.8 Dist of Columbia 5,785 202.5 192.3 102.9 186.9 Florida 2,555 89.4 87.6 92.6 94.6 Georgia 2,595 90.8 89.3 108.8 82.2 Hawaii 2,970 104.0 105.4 89.6 117.6 Idano 2,226 77.9 77.5 100.1 77.4 Illinois 2,611 91.4 93.8 102.4 91.6 Indiana 2,294 80.3 30.5 99.3 81.1 lowa 2,650 92.8 93.6 95.8 97.7 Kansas 2,562 89.7 92.8 98.4 94.3 Kentucky 2,271 79.5 77.7 108.3 71.7 Lousiana 2,525 88.4 91.9 110.4 83.2 Maine 2,693 84.2 92.2 89.0 103.6 Maryland 2,953 103.4 102.9 97.0 106.1 Massachusetts 3,286 115.0 111.5 87.3 127.7 Michigan 3,122 109.3 107.9 108.3 99.6 Minnesota 3,470 121.5 122.2 98.0 124.7 Mississippi 2,245 78.6 75.5 113.3 66.6 Missouri 2,139 74.9 77.0 100.2 76.8 Montana 2,814 98.5 107.3 102.0 105.2 Nebraska 2,597 90.9 92.3 96.2 95.9 Nevada 2,931 102.6 104.6 95.9 109.1 New Hampshire 2,441 85.4 83.3 85.4 97.5 New Jersey 3,297 115.4 113.0 93.1 121.4 New Mexico 2,841 99.4 100.3 110.8 90.7 New York 4,200 147.0 145.2 95.3 152.4 North Carolina 2,271 79.5 77.4 98.6 78.5 North Dakota 2,921 102.2 107.9 105.2 102.6 Ohio 2,580 90.3 $0.7 99.9 90.8 Oklahoma 2,307 80.8 82.5 103.8 79.5 Oregon 2,961 103.7 104.6 97.9 105.8 Pennsylvania 2,518 88.1 87.5 90.4 96.8 Rhode Island 3,056 107.0 103.8 85.8 121.0 South Carolina 2,293 80.3 79.0 103.3 76.5 South Dakota 2,355 82.4 94.7 104.7 90.4 Tennassee 2,242 78.5 77.4 103.5 74,8 Texas 2,458 86.1 86.5 109.7 78.8 Utah 2,635 88.7 $4.8 104.9 90.4 Vermont 2,928 102.5 102.4 89.1 114.9 Virginia 2,637 92.3 89.4 98.6 90.7 Washington 2,869 100.4 103.4 98.6 104.9 West Virginia 2,282 79.9 84.7 102.7 82.5 Wisconsin 2,947 103.2 105.9 94.2 112.4 Wyoming 4,279 149.8 164.7 102.2 181.2 U.S. Average 2,857 100.0 100.0 100.0 100.0 Note: Indexes calculated from unrounded figures Sources: U.S. Department of Commerce, and R.W. Rafuse, Jr. (ACIR), Unpublished Paper, Dec. 1989 -13- FEB 26 '90 16:23 SEN B RUSSELL P.21/24 CENTER FOR GOVERNMENTAL RESEARCH INC. ACIR's new Representative Expenditure System, conceptually analogous to its Representative Tax System, represents a pioneering effort to address the two shortcomings of the traditional per capita measure. Robert W. Rafuse, Jr., the author of the study, first identified measures of the workloads of each major governmental function to indicate the relative need for outlays on such functions. Measures of such workloads, or need units, include children of elementary schoolage net of enrollment in private schools, school age population living in households below the poverty line, total population below the poverty line, vehicle miles traveled, lane miles of streets and roads net of federal highways, crime statistics, and others. Total nationwide state and local governmental spending was then divided by total U.S. need units. The resulting amounts were further adjusted to reflect interstate variations in the input costs (employee compensation) of each major function. The end results of these calculations were then expressed in per capita terms and are shown as the RES (Representative Expenditure System) indexes in column 4 of Table 5 (on page 13). New York's Spending Highest By Any Measure New York's hypothetical RES figure of 95.3 should be interpreted as follows: If New York's state and local governments were to provide services to people and institutions in the same manner and quantity per need unit as state and local governments in the U.S. as a whole, New York's per capita spending would only be 95.3 percent of the U.S. average, or 4.7 percent below such average. -14- FEB 26 '90 16:24 SEN B RUSSELL P.22/24 CENTER FOR GOVERNMENTAL RESEARCH INC. However, as shown by column 5 of Table 5, depicting the ratio between the per capita spending index and the representative expenditure index (a simpler description of this measure would be "Over/Under~Spending Index"), New York's actual state and local governmental spending is 52.4 percent above the level required by spending patterns conforming to national averages. Disregarding Alaska, Wyoming, and the District of Columbia,* New York finds itself in an uncontested first place position. In terms of actual per capita spending, New York exceeds second ranking Minnesota by 21.5 percent. In terms of the ACIR measure, New York exceeds second ranking Massachusetts by 19.3 percent. New York's High Spending Pervasive New York's high overall spending index is the sum total of extremely high over-spending indexes for all governmental functions, except higher education: Ratio of Actual Per Capita Spending Index Functions to RES Index Position in the U. S. Primary & Secondary Education 149.2 highest Higher Education 87.0 36th Public Welfare 197.8 Health and Hospitals third, behind MA and RI 172.5 highest Highways 153.1 highest Police and Corrections 144.4 second, behind NV Environment and Housing 139.9 second, behind HI Interest and General Debt 149.9 Governmental Administration fifth, behind DE, RI, MN, and OR 131.4 All Other Expenditures fifth, behind NV, HI, DE, & CO 173.0 highest Total Spending 152.4 highest *Alaska and Wyoming because of their heavy reliance on exportable taxes on extractive character. industries; the District of Columbia because of its all-urban -15- FEB 26 '90 16:24 SEN B RUSSELL P.23/24 CENTER FOR GOVERNMENTAL RESEARCH INC. CONCLUSION New York's excess tax burden and excess spending, whether measured by traditional per capita figures or by the more sophisticated indexes developed by ACIR, are far above those of other states. The major culprit on the tax side is the New York State personal income tax which has built a huge lead over the rest of the nation, even over next-ranking Massachusetts. This lead, so far, seems to have been impervious to the tax rate reduction enacted by the state to date. There can be no doubt that excess taxation at this scale, when incorporated in the costs of just about every good and service produced in New York State, must inevitably affect the competitiveness of producers whether they sell in or outside of New York State. On the spending side, the new work by Robert Rafuse of ACIR sharply contradicts the claims that New York's high taxes are the result of high spending needs. Although the author cautions that the study methodology will be further refined, and that national spending norms per need unit are not necessarily the most desirable standards, the very large disparity between New York's actual per capita spending and its RES need index raises some important questions. If these higher expenditures are in fact attributable to higher level and better public services, why have they been unable to stem the sharp decline of 23.7 percent in New York's manufacturing employment over the past 15 years, a rate exceeded only in three states of the U.S.? If higher and better public services are in fact producing and supportive of a superior -16- FEB 26 '90 16:24 SEN B RUSSELL P.24/24 CENTER FOR GOVERNMENTAL RESEARCH INC. quality of life, why has New York, ever since the 'sixties, experienced net out-migration of population? It appears that the effects of the costs of additional and better public services in New York State are outweighing the benefits generated by such services: high levels of taxation are harming economic development and erode the ability of the economy to support high quality jobs, government services, and a generally high quality of life. -17- FEB 26 '90 16:25 SEN B RUSSELL P.25/24 CENTER FOR GOVERNMENTAL RESEARCH CENTER FOR GOVERNMENTAL RESEARCH INC. The Center for Governmental Research Inc. (CGR) has served as an independent, non-profit, professional resource promoting effective decision- making in the public sector since 1915. Its staff provides objective information and guidance to citizens, organizations, governments, and business on concerns of public interest. CGR is committed to advancing responsive government by encouraging a spirit of cooperative action among governments at all levels and between the public and private sectors. The present CGR staff consists of 20 highly trained professional and experienced research associates, virtually all of whom have graduate level of disciplines including urban economics, public finance, public adminis- training or hold advanced degrees. The staff has expertise in a wide variety tration, political science, sociology, economic development, planning, demography, criminal justice, statistical methodology, computer graphics and engineering. programming, information sciences, industrial psychology and environmental The Center staff is organized into five broad areas of activities: 1. Public Administrative and Management Research, dealing with town, village, city, county, state and federal governmental structure, function, and procedures. 2. Public Finance and Economic Research, focusing on local and state spending and taxing issues. 3. Human Services Resource Center, specializing in evaluation and planning of human services in the governmental and voluntary sectors. 4. Economic Development Research, analyzing policies/critical concerns of New York State in its efforts to foster growth upstate). of business (especially, the manufacturing sector in 5. Research Library, computer services and data dissemination staffed by, among others, a professional librarian, a demographer, and cartographer. CGR's facilities--renovated in 1989-include meeting rooms for up to 50 people and a research library. All offices are linked with an up-to-date computer network. The computer network contains a variety of state-of-the-art software packages for data base management, statistical analyses, geocoding and document processing. CGR is a New York State U.S. Census Affiliate Data Center. For further information, please call (716) 325-6360. -18- ald, contends the tycoon property. fore marriage. Molinari finds pal NYDaily news at top to 3/1/90 back her By MARY ENGELS and BARBARA ROSS Daily News Staff Writers President Bush yesterday urged Staten Island and South Brooklyn voters to elect City Councilwoman Su- san Molinari to Congress on March 20, promising that if they do, she will have "a friend in the White House." In the first presidential visit to Staten Island since Lyndon, Johnson dedicated the Verrazano. Bridge 25 years ago, Bush warmly praised the 31-year-old daughter of his old friend, Staten Island Borough Pres- ident Guy Molinari. Bush said that Susan Mo- linari, who is running against Democrat Bob Gi- gante for the congressional seat vacated by her father, is embroiled in "one of the great contests of 1990." FRIEND IN WHITE HOUSE: City Councilwoman Susan Molinari exchanges kisses with President Bush yesterday. The chief executive was in "A lot is at stake. There's Staten Island to urge voters to vote for Molinari, who is running for Congress. HARRY HAMBURG DAILY NEWS been a lot of money spent on both sides, a lot of press at- ident. The Republicans won has a "comfortable" lead aides attributed it to the it figured out about the way tention. And I'm not here to one and lost the other. over Gigante, a 42-year-old state party's interest in the they'd figured out Nicara- talk about the Trumps," he 'A sure bet' lawyer, but "I never take race. gua." said to laughter at a fund- anything for granted." Noticeably absent from raising luncheon. The borough president re- Meanwhile, Bush yester- the fund-raiser was Sen. Al- Bush, who was accompa- jected a suggestion that Tonight, Gov. Cuomo will day reminisced about his fonse D'Amato (R-N.Y.). The nied by Republican Nation- Bush put his prestige on the speak at a fund-raising din- 1988 campaign, when Molin- senator and Molinari were al Chairman Lee Atwater, line in this contest, saying ner for the Staten Island ari was one of his earliest once best friends, sharing an has campaigned in only two the young Molinari looks Democratic Committee. This supporters: "Molinari was at apartment in Washington; other congressional cam- like "a sure bet." is Cuomo's second visit to my side when the going was they had a bitter feud last paigns since becoming Pres- Molinari said his daughter the island in two months; tough and the pollsters had year over the mayoral race. Grant/Nappo February 26, 1990 Draft five A:Molinari REMARKS: FUNDRAISING LUNCHEON FOR SUSAN MOLINARI STATEN ISLAND, NEW YORK WEDNESDAY, FEBRUARY 28, 1990 12:30 P.M. Thank you. Great to see you, Congressman Bill Paxton. It's a pleasure to see so many supporters here today ... Pat. Barrett, our New York G.O.P. Chairman; Olga Igneri [ig-NAIR-ee], our Richmond County Republican chairman; our King's County chairman, Fred Pantaleone [pan-ta-le-OWN]; and Mike Long, the State Conservative Party Chairman. And of course, the 14th Congressional District's next Representative ... our own Susan Molinari.\\ And I'd like to recognize another Molinari -- one of the outstanding leaders on Capitol Hill who's back home to stay, my friend, Guy Molinari. Guy has been a key member of our team in Congress, but the voters here like him so much they've elected him Borough President so he's a little closer to home. [And I see that your Deputy Borough President, Jim Molinaro, is also here today.] You know, I've known Guy a long time. He was there for me in the tough early years, and I was proud to have him at my side as my New York campaign chairman. Guy, you're a good friend and we'll miss you in Washington. Barbara and I wish you the best. This is the first stop on our cross-country trip, and when we arrive in California we'll be talking to Californians about 2 fighting drugs and crime -- issues which I know concern New Yorkers as well, and which I want to talk about today. And I'll be meeting with Prime Minister Kaifu of Japan to discuss, another important issue: American competitiveness in the Pacific Rim. It's been almost 25 years since a President came to Staten Island, when President Johnson dedicated the Verrazano Bridge. Tonight, I'm here to talk about another bridge -- a bridge to the future -- an election that will determine whether Staten Island gets the experience, leadership and independence it deserves. The election of the next Congresswoman from New York -- Susan Molinari. So here I am in New York, where one of the great contests of 1990 will take place. There's a lot at stake and there's been a lot of money spent on both sides so much press attention ... But hey, I'm not here to talk about the Trumps. You all know I'm here to talk about the race in your Congressional District. Guy Molinari leaves some pretty big shoes to fill, but I can't think of anyone better for the job than Susan Molinari. Like her father, Susan will continue the hands-on leadership the voters have come to expect from the name "Molinari." Speaking of names, I'll tell you a true story. Susan found a scrawny little mutt on Election Day of 1988. We were all waiting for the returns to come in, but the dog wasn't doing well, and they didn't think it would make it. But it was a good 3 dog -- loyal, cautious and prudent, -- and it pulled through. I still can't figure out why, but she named the dog "George." But Susan, there's one bit of insider political advice I'd like to give you. Just one single word. 11 Puppies. I understand that Susan's opponent is charging that she'll do nothing but follow in her father's footsteps. ((Actually, that sounds like a pretty good endorsement to me ...)) Susan Molinari is a tough, independent leader. She has the determination, the understanding and the experience to get the job done. When she was 27 she was already making history: youngest member ever elected to the New York City Council; first Republican elected from her district; the only Republican elected to the City Council -- and she beat her Democratic opponent for re-election 3 to 1. Susan Molinari is "the new generation of leadership. Time and time again, Susan has been tested. During her tenure as Minority Leader on the City Council, she has held her own -- as the toughest "minority of one" anyone's ever seen. The effects of her leadership will be felt for many years. She opened the door for other Republicans to follow her. She gave this Party a voice where there was none. A great bipartisan leader, she proved that the only fair system is a two-party system. Her opponent says Susan can't possibly be effective in Congress, because she's not in the majority party. Poor guy, he doesn't understand that there's a direct correlation between 4 effectiveness and experience. Between effectiveness and leadership. Between effectiveness and independence. And Susan Molinari is the only candidate in this race with all three. Plus she has something else: a friend in the White House. The people of Staten Island need Susan in Congress, because she'll do what's best for them. The Republican leadership needs her in Congress, because they need her drive, initiative and experience. And I need her in Congress, because we agree on the important issues -- like a strong economy, schools and streets free from drugs and violence, and a clean, safe environment. We both agree that we need action on these issues, and we need it now. Drug abuse is a threat to all of America, but it's an especially real threat to Staten Island. Only a few miles from here, Everett Hatcher, a veteran DEA agent, was brutally murdered by cocaine cowards. In the days after his death, his wife put the blame for his killing squarely on the shoulders of so-called "casual" drug users. We have to win the war on drugs for Everett Hatcher, and all those who have given their lives to free America of drug abuse. Susan knows the neighborhoods here. She's dealt with the fight against drugs and crime as a tough City Councilwoman. And now I need her experience in Washington. You deserve safe, drug-free streets and schools. You deserve the leadership of Susan Molinari. One of the most vital issues today is protecting our planet. Staten Islanders face some of the toughest environmental problems 5 in this country, and Susan will fight -- and fight hard -- to reduce air toxics and urban smog. Right now, our Clean Air legislation is in both the House and Senate, and Susan will take the oath of office just in time to make a difference. We've laid down a fair-minded compromise, to help clean up our air while preserving jobs. Now, let's break the stalemate. Let's protect our environment for decades to come. Let's get the lead out. Susan gets action on the environment. When the Exxon spill left oil sludge on the shores of Staten Island, she called company officials into her office. And by the time they left, Exxon had agreed to the Molinari nine point plan for the cleanup. Now that's what I call tough leadership. That's what I call results. And there's another result we ought to talk about tonight. The result of nine years of Republican leadership at the federal level: lower taxes and the greatest economic expansion in history. And we've got to keep that economy strong so we can keep America strong. Susan and I believe that lower taxes are the key to making America competitive in the global marketplace. She and I know we can outproduce, outmarket, and outsell anybody else -- if we can keep taxes low for American business. Susan understands what the voters want. Because like Staten Island, she has a brilliant future and a proud heritage. Let me tell you a story: 86 years ago, a battered steamer pulled into New York Harbor, and a six year-old boy -- one of fourteen kids - - and his mother stepped off onto Ellis Island, ready to join his 6 father and siblings after leaving their home on the coast of Southern Italy. Looking across the Harbor to the Statue of Liberty, little Bob Molinari took the oath of allegiance and became an American. Years later, the small boy became a successful businessman. He taught his five children the value of education and hard work. Held down three jobs, put himself through night school, then decided it was time to give something back to the new land that had given him so much. He entered public service, serving Staten Island tirelessly in the State Assembly. Guy says his father was terribly proud of the United States, "and he never let us forget it." Guy felt the same way about education, about being an American, about serving this great country. When he was sworn into office, not far from here, he, too, took his oath at the foot of the Statue of Liberty. The light that glows from the huge Statue's torch shines over Staten Island -- and beside this great community she stands, looking forward to the world, and to the future. Now the time has come for Susan Molinari to lead Staten Island forward. America has given her much -- a wonderful family, an education and the opportunity to be the best she can be. So now, like her grandfather and her father before her, Susan wants to give back some of the blessings America has given her. She cares about this country and she's served Staten Island well. It's time for a new generation of leadership. 7 Your future and that of your children are precious. We need experience. We need independence. We need leadership -- for a strong Staten Island, and a strong America. We need Susan Molinari. III Thank you, God bless you and God bless America. # # # Photocopy-Preservation NEW YORK POST, THURSDAY, MARCH 1, 1990 New York Post Charles Wenzelberg A BUSH AND A PECK: President Bush gives candidate Susan Molinari a kiss for luck yesterday. Prez tells Trump gag on S.I. By DEBORAH ORIN contests of 1990 will take just roared with laughter. agree on, but avoided any Washington Bureau Chief place - a lot at stake, GOP City Councilwoman mention of abortion. She is there's been a lot of money Molinari, 31, is running pro-choice, while Bush is Even President Bush spent on both sides, a lot of against underdog Democrat right-to-life. couldn't resist making a press attention," Bush said. Bob Gigante, 42, for the seat Susan Molinari later Trump joke on the stump The president, wearing a vacated when her father, yesterday as he visited mock-serious look, gave a Guy Molinari Bush's 1988 said talking about abor- significant pause and then tion wouldn't serve any Staten Island to boost New York campaign chair- added: "But I'm not here purpose since, "he's not Susan Molinari's bid to man - was elected borough to talk about the Trumps." going to change his posi- succeed her congressman president. father. Not all that funny? Bush vowed she will tion, I'm not going to change mine." Well, maybe you had to have "a friend in the "So here I am in New York be there the crowd at White House' and ticked Her father. whols also a where one of the great the Shalimar catering hall off a host of items they right-to-lifer, says he has no intention of changing Bush dials Gorby for 40-minute chat his view, but believes his daughter's pro-choice position is an asset at the polls WASHINGTON - President Bush said he called Soviet leader Mikhail Gorbachev yesterday and had a Also on the ballot will be "very good" discussion that lasted 40 minutes. Right to Life Party candi- The lengthy call to Gorbachev came in the wake of date Barbara Bolleart and Bush administration suggestions. that the Soviets Liberal nominee Carl Grillo played a key role in encouraging Nicaragua's Sandin- Republicans who lost ista government to hold fair elections. three key races to pro- "We touched on matters relating to Nicaragua and choice Democrats last Central America and also on matters relating to the fall, including the New changes in Europe," Bush told reporters on Air Force York mayoral race are One en route to a Staten Island campaign stop for GOP now seeking to downplay congressional hopeful Susan Molinari. the abortion issue. The call was unusual enough to be reported from Moscow by the Soviet's Tass news agency, which said The president's brief the two leaders "had a telephone conversation today stop en route to California within the framework of regular opinion exchange." was the first presidential Bush refused to go into detail about his talk with Gor- visit to Staten Island since bachev - other than to characterize their chat as "very GORBACHEV Lyndon Johnson came/by constructive." Eli Teiber America calling. on Oct. 12, 1966. PAGE A6 / THURSDAY, MARCH 1, 1990 The Washin INSIDE THE BELTWAY His own thing Moving right along Mr. Devine proposes that the "CIA Good-Buddy of the Year" Reed Irvine will be doing his President Bush was in New York award be bestowed on Ben Bradlee own thing while a lot of other con- yesterday addressing a fund-raiser and Co. for their partisan efforts. servative leaders gather for the for Susan Molinari, a Republican After which, no doubt, raucous guf- Conservative Political Action Con- candidate for the House opposed by faws will haunt the 15th Street San- ference today through Saturday. Democrat Bob Gigante. "So here I dalista battalion into the next cen- Mr. Irvine, one of the sparkplugs am in the middle of the battle right tury. behind the somewhat similar Con- here in New York where one of the servative Leadership Conference, great contests of 1990 will take 'October' truth will be leading an expedition to El place. A lot at stake. There's been a At least somebody besides Salvador "to see for themselves lot of money spent on both sides, a Donny and the Trumpettes is get- how the left has blackened the im- lot of press attention," he assured ting a little publicity. Tom Clancy age of that country, Mr. Irvine Molinari supporters. was asked about the Soviet admis- said. Then Mr. Bush added: "But I'm sion of a mutiny aboard an anti- Asked if he was boycotting the not here to talk about the Trumps." submarine destroyer off Sweden in CPAC function, Mr. Irvine said he Of course 1975 that inspired his "The Hunt was told last year by CPAC orga- for Red October." He told ABC's nizer David Keene to "butt out" be- Even a bunch of seasoned cynics "Good Morning America": "The cause of his criticism of the way like the Beltway Irregulars didn't last 14 months have given us a lot the event was structured. see the real story until Don Devine of surprises and this is one of Mr. Keene discounted Mr. Ir- broke it to us. "All those polls show- them." vine's version of what happened ing Ortega had the election sewed Mr. Clancy said an Izvestia re- during a confrontation at the last up, they were part of a CIA plot to porter got in touch with him and CPAC and insisted, "Reed is wel- make him complacent," Mr. Devine said the release of the movie based come at CPAC any time." explained. "If Ortega had felt un- on his book was giving the Soviet Another of the CLC kingpins, easy about it he might have called government an excuse to admit the whole thing off." Morton Blackwell, was also ru- that the incident actually took Mr. Devine also illuminated us as mored to be boycotting the CPAC place. to the crucial role in the plot played event. "Burn that source," Mr. Blackwell commented. "I'll be by The Washington Post. "Without Get a horse the secure assistance of the Post, there." Ortega could not have been misled," President Bush has proclaimed CPAC sources said the third Mr. Devine assured us. "CIA ef- today through March 7 as National member of the CLC triumvirate, forts alone could not have resulted Quarter Horse Week. "This horse is Paul Weyrich, had not indicated an in such great success. It took the uniquely ours, having been devel- intention to attend their event this cooperation of the Post to pull it oped in colonial America and bred year. off." for speed," said Mr. Bush in his proclamation. "No other horse is a greater part of Western folklore, and none has contributed more to BUY INFLUENCE IN ARIZONA our nation's development and ILLEGAL TENDER cultural heritage." FOR REDEEMABLE FAVORITISM Should anyone ask why the fuss, FROM YOUR U.S. SENATOR JOIN US the fact is there are 2.8 million of IN CLEANING UP IF YOUR U.S. SENATOR these beasts registered with the ARIZONA WON'T ACCEPT THIS NOTE & American Quarter Horse Associ- CALL: RECALL ation. The question is, will they BEYOND DeCONCINI. McCAIN RECALL have the vote by '92? 997-1874 Charles Cheating Mad poet The Bard of the Beltway strikes again. This soulful ballad is titled Funny money recall 'Combat Romance." "They say her name was Patsy, Federal agents have confiscated Ed Buck's phony $10 bills. The funny But us GI's just called her money shows Sen. Dennis DeConcini, Arizona Democrat, on one side and 'Sarge;' Sen. John McCain, Arizona Republican, on the other. Among slogans on the We met out on the front one day, bill: "Use this note to buy influence in Arizona." Just before they ordered The problem with the gimmick is that the bills are the same size and 'Charge' use some components of an actual $10 bill. We went up the hill together, Mr. Buck, who previously orchestrated the recall of former Gov. Got pinned down behind a tree; Evan Mecham, said future printings of the DeConcini/McCain bill would 'Midst the mortars and the bul- be "in total compliance with the law." He is head of "Beyond Recall," a lets, large group of Republicans, Democrats, gun owners and various populists. We got close, ol' Sarge and me. Some are worked up about the two senators' roles in the Lincoln Savings So here's to combat romance, and Loan scandal, while others don't like Mr. DeConcini's position on gun And battlefield camaraderie: control. They are preparing a recall drive against Mr. DeConcini and Mr. Dress them patsies up in khaki, McCain. And, hey, bring on World War "Both senators are in serious trouble," noted the Family, Law & De- III." mocracy Report of the Free Congress Foundation. John Elvin Photocopy-Preservation cluding the possibility of court-ap- Kill van Kull disrupts shipping at Ports Repaying a Debt, President Raises Funds for Ms. Molinari Repaying a political debt, President Bush tries to Bush yesterday helped City Council- woman Susan Molinari of Staten Island raise at least $100,000 for her campaign keep the Staten for the special election to succeed her father, Borough President Guy V. Moli- Island seat in the nari, in the House of Representatives. Politicians said Mr. Bush's hour-and- G.O.P. column. a-half appearance at a $200-a-plate re- ception and luncheon was was one of the biggest political events on the is- land in recent years. have "a friend in the White House." He 'Mr. Molinari, who held the seat from said her political heritage extended not the 14th District until becoming Bor- ough President on Jan. 1, was chair- only to her father, but also to her man of the Bush campaign in New grandfather, S. Robert Molinari, who was an assemblyman in 1943 and 1944. York in 1988. His daugher's Demo- "Like Staten Island," Mr. Bush said, cratic opponent in the election, on "she has a brilliant future and a proud March 20, is Robert L. Gigante, a law- heritage." yer. 'Mr. Bush talked more about the fa- Discussing the drug problem, a ther than the daughter to 700 people at major campaign issue, Mr. Bush said: the Shalimar catering hall, a stopoff on "Only a few miles from here, Everett Hatcher - remember the name Ever- the way west for additional campaign- ett Hatcher - a veteran D.E.A. agent, ing in California. "Guy Molinari was at my side long was brutally murdered by cocaine cow- ago when the-going was tough and the ards. In the days after his death, his pollsters had it figured out just about wife put the blame for his killing the way they had Nicaragua figured," squarely on the shoulders of so-called Mr. Bush said. casual drug users. The New York Times/Keith Mey "We have to win the war on C. ugs for The President praised the bipartisan Everett Hatcher,and all those who President Bush went to a fund-raising luncheon yesterday for Ci leadership of Ms. Molinari, the lone Re- publican on the Council, and promised have given their lives to free America Councilwoman Susan Molinari of Staten Island, who is campaigning that the 31-year-old candidate would of drug abuse." succeed her father, Borough President Guy V. Molinari, in Congress. New York Plans to Begin Double-Bunking Inmates in State Priso utive director of the Correctional As- Met Miller. "It will dramatically in- "It reflects the basic futility of Continued From Page Al sociation of New York, a nonprofit crease the amount of fights, the state's policy," Mr. Gangi said. group. "It greatly increases the risk of amount of sex abuse, the amount of Mr. Gangi also questioned whe under construction are completed. theft and tension." the Commissioner, Mr. Coughlin, a possible eruption at a prison." That is expected to be sometime this Grievance Filed timed the announcement to rally The state signed a court consent or- summer. At the same time, the number port for prison expansion at a t der in 1982 agreeing not to house more Charles R. Booth, a spokesman for when the state, facing heavy bue of inmates is expected to rise signifi- than one inmate in a cell in its maxi- the corrections officers union, said the problems, is looking for ways to cantly, which would mean that the mum-security prisons. union would fight the plan. "We're spending. bunks would still be needed once the The state's Commissioner of Correc- going to do everything we can to stop it In the budget he presented in J: new prisons are completed. tional Services for more than a decade, from happening,' he said. ary, Governor Cuomo proposed ad- Inmates at minimum-security The union, Council 82 of the Security Thomas A. Coughlin 3d, has long been 5,300 new beds to the state prison prisons, who often participate in work- and Law Enforcement Employees, has an opponent of doubling up prisoners to tem in annexes attached to exis release programs and return to prison already filed a grievance accusing the expand prison capacity. But today, prisons. The cost of the proposed state of violating its contract, and is only at night, are already housed with pansion would be almost $300 mil trying to minimize the danger of dou- considering legal action, Mr. Booth bunk beds. But this would be the first It is now a topic of budget negotiat ble-bunking, correction officials said. between the Governor and the S time that medium-security prisoners pointed out that most major prison sys- For those groups like the Correc- Legislature. would be housed that way, state offi- tems, including the Federal system, al- tional Association that have been cials said today. ready double up. pressing the Governor to reconsider 'A Major Departure' But other officials were not sanguine his support for constant prison expan- about the plan. sion, today's announcement provided What's Sunday without The Tin "It represents a major departure in "It's pretty bad," said James A. another argument in favor of alterna- state policy," said Robert Gangi, exec- Yates, counsel to Assembly Speaker tives to incarceration. Photocopy-Preservation THE WASHINGTON POST R1 THURSDAY, MARCH 1, 1990 B3 Personalities By Chuck Conconi advantage. Yesterday, the Dole-Thurmond Washington Post Staff Writer puppies made their first appearance on Capitol Hill with the proud parents and Rose Narva, Washington's best-known hotelier, is trying to buy the Gene Autry owners in close camera range. The eight Hotel in Palm Springs, Calif., where such 5-week-old schnauzer puppies, offspring of Leader Dole and Chelsea Marie Thur- desert-loving gentry as Bob Hope, Walter Annenberg and Frank Sinatra have sprawl- mond, were introduced to the roomful of ing homes. According to a Palm Springs press by their owners Senate Minority business newsletter, Desert View, Narva Leader Bob Dole and Labor Secretary Eliz- has a bid in that is contingent on getting the abeth Dole and Sen. Strom Thurmond and proper backers. Narva, who has renovated his wife, Nancy. Five of the balls of fur are and run some of 16th Street's most impres- already spoken for: Two will go to Elizabeth sive properties-the Hay-Adams, the Sher- Dole's relatives in Raleigh, N.C., two will be aton-Carlton and the Jefferson-lost out in auctioned off at charity events and one will an attempt last year to buy the Jefferson, go to Sen. David Durenberger and his wife, which had been owned by the late Edward Penny, as a replacement for their schnauzer Bennett Williams. who died two weeks ago. As for that other The 188-room Gene Autry Hotel has well-known Republican mutt, Bob Dole said been owned by the former cowboy singing Millie had been invited to the press confer- star for some 25 years and according to a ence but "she was tied up in meetings." And source here is a tarnished property desper- that's the way it was yesterday on Capitol ately in need of a major upgrading, some- Hill thing Narva is noted for doing. She wants to Elizabeth Taylor, in her continuing dedica- turn the Autry into a luxury hotel. Now it is tion to raising money for AIDS research, will considered to be too small to be profitable, BY WASHINGTON Sen. Strom Thurmond and Labor Secretary visit Sens. Ted Kennedy and Orrin Hatch on especially in a seasonal market where a Tuesday in their Capitol Hill offices. Taylor, large, dramatic new Ritz-Carlton Hotel has Elizabeth Dole with the pups yesterday. national chairman of the American Founda- opened. There are some three acres of land tures Corp. in which the writer said Mur- tion for AIDS Research, will testify later in suitable for expansion on the Autry site. As phy's hit film "Coming to America" was the day before the Human Resources Task a close source said yesterday, Narva has based on a treatment that he wrote. In Force headed by Rep. Barbara Boxer on signed the purchase agreement and is now January, a judge ruled Paramount would behalf of more federal funding for AIDS "sweating out" getting her financial backers have to pay Buchwald for the idea. The care signed in less than 30 days. amount of money has yet to be determined, Even President Bush couldn't contain him- Out and About but Buchwald's win was seen as an impor- self. He had to say something about Trump: tant victory against the rich, powerful stu- The Divorce. In New York City speaking at a It looks like superstar Eddie Murphy is dios with enough money to out spend and fund-raiser for Republican congressional can- having more problems. Michael Greene, a wear down writers in lawsuits. In the new- didate Susan Molinari, Bush said he had New York screenwriter, has charged that est suit, in which Paramount is also named, come to help campaign against Democrat Bob Murphy's poorly received film "Harlem Greene charges he found some 100 similari- Gigante. "So here I am in the middle of the Nights" contains material from a screenplay ties between his script and the finished battle right here in New York where one of he wrote for Murphy called "A Halloween to Murphy film. A Paramount spokesman has the great contests of 1990 will take place. A Remember." He is seeking $35 million for denied the charge lot at stake. There's been a lot of money copyright infringement. There was a similar Roosevelt, Johnson and Nixon under- spent on both sides, a lot of press attention." case brought last year by syndicated colum- stood the Power of the Pooch. Bush and Then he added: "But I'm not here to talk nist Art Buchwald against Paramount Pic- other Republicans are using it to great about the Trumps" Photocopy-Preservation