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The original documents are located in Box G04, folder "Reagan, Ronald, 10/1975-12/1975
(2)" of the President Ford Committee Campaign Records at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
BRIEFING ANALYSIS
REAGAN RECORD IN CALIFORNIA
TAB 1: LAXALT LETTER FOR REAGAN
TAB 2: FACT SHEET --- REAGAN RECORD
TAB 3: Q & A's
FORD & LIBRARY GERALD
NEVADA
United States Senate
WASHINGTON, D.C. 20510
Fellow American,
The Reagan for President Campaign is going very well, but faces a very
difficult situation.
The Ford-Rockefeller team is campaigning intensely around the nation and
especially in the nation's first Presidential Primary state, New Hampshire.
Although neither the President nor the Vice President were selected by
their Party nor elected by the people, they have successfully taken advantage
of their positions.
Already they have amassed hundreds of thousands of dollars for their
primary battles, and there is no doubt that thanks to the Rockefeller influence
they can raise literally millions more.
Ronald Reagan has received a very warm reception to his speeches across
the country and I can tell you as a loyal supporter that in the very near future he
will explain to the nation why he is running for President.
But Ronald Reagan has a problem. Funds are very tight.
He has no "sugar-daddies" bankrolling his campaign, but must count upon
the loyal support of thousands of Americans such as yourself.
Due to the distortions of the biased news commentators, Ronald Reagan
must have hundreds of thousands, even millions of dollars for TV time so that
he may speak directly to the American people.
He will tell them that as Governor of California he was successful in:
reducing the number of individuals on welfare rolls by 400, 000,
while at the same time those truly needy individuals received a
43% increase in benefits!
creating and returning an $850 million surplus to the California
taxpayers
keeping the size of the California state government constant
originating and signing a massive tax relief bill which resulted
in a $378 million saving to California's property owners and a
$110 million saving to renters.
As provided in federal legislation, Citizens for Reagan may accept individual contributions up to $1,000 (for example, a husband and V
$1,000) prior to a nominating convention; this may be repeated following the convention. However, we are not able to accept either (a) a
whatever, or (b) any individual personal contributions over $1,000. A copy of our report will be filed with the Federal Election Commission
for purchase from that office in Washington, D.C.
GERALD FORD LIBRARY
Ronald Reagan can and will provide the leadership this nation needs so
desperately, but he must have your support today!
Money is needed immediately for the fast approaching primary battles
in New Hampshire and Florida. Thousands of dollars are needed for postage,
campaign staffs, printing, advertising, etc.
Ronald Reagan needs your dollars today!
The Reagan Campaign is truly a campaign of the people. It will take a
total commitment and the tireless efforts and personal sacrifice of thousands
and thousands of Americans if we are to be successful in electing Ronald
Reagan as President of the United States.
Send your contribution to Ronald Reagan today
$20, $50, $100, or as
much as $1,000 is needed immediately!
With your support and faith and work I know we will carry the day for
freedom.
The Reagan Campaign may just be the most important election of your
lifetime. This time
before it is too late for our nation
make your total
commitment
help elect Ronald Reagan President of the United States!
Please send whatever you possibly can.
today!
Sincerely,
Pare
Paul Laxalt, Chairman
Citizens for Reagan
PL/kme
P.S. Send the enclosed post card or your personal letter to Ronald Reagan
letting him know you support his Presidential campaign and please
return your contribution in the enclosed envelope today. Thank you.
Absolutely no taxpayers' funds have been used in the preparation of this correspondence.
FORD & LIBRARY
FACT SHEET
REAGAN RECORD IN CALIFORNIA
WELFARE
Statements:
a) Welfare rolls reduced by 400,000
b) Welfare rolls reduced by 24% per year
c) $1 billion in taxes saved over two years
d) Significantly decreased fraud and overpayment
Facts:
- The Reagan plan was not fully enacted.
- Much of what did become law was subsequently
invalidated by the State and Federal courts
or by HEW.
- The remainder had little actual effect on the
reduction of costs or of the caseload, which
were curbed for other reasons, generally
related to upswing in the national economy.
- Actual costs were not lowered in the 1 1/2
years immediately following the act. The
Reagan plan, in fact, generated new welfare
costs of $100 million.
- The raw number of AFDC recipients (although
not the number of eligible families) did
shrink somewhat, but not nearly to the
extent claimed by Reagan.
Discussion:
The welfare cost savings and the reduction in case-
loads are significantly misstated and generally did
not exist at all. They are based upon projecting
"what would have happened" and comparing these
projections with actual experience after California
Welfare Reform was instituted in October 1971. Among
the ways in which these "projections" are significantly
overstated (and consequently savings are overstated)
are the following:
1) They project the high national unemployment
trends of early 1971 which were reversed
about the same time the California law was
enacted.
&
FORD
GÉRALD
LIBRARY
2
2) They project the heavy migration pre-1971
trends of the 1960's which had signifi-
cantly slowed in 1971.
3) They project birthrate trends significantly
above the actual trends following 1971.
4) They project rising pre-1971 trend in
caseload which was due to legal challenges
to the State programs which caused the
percent of eligibles who participated in
the program to rise from 56% in 1967 to
nearly 100% in 1971. In short, this trend
had saturated and stopped in 1971, but was
projected anyway.
5) Both Los Angeles and the State double
counted the same 20,000 recipients. When
the State stopped double counting them, it
called this a caseload "reduction" of
20,000.
Further, they take credit for reduced caseload and
savings which resulted from factors unrelated to
the California legislation. These factors
included:
1) a decline in State unemployment (see
charts 1 and 2) from 8.8 in 1971 to 7.0
in 1973 due to:
a) temporary wage-price freeze enacted
nationally in August 1971
b) major Federal stimulation of the
California economy through new defense
contracts and the $250 million
Lockheed bailout
c) a decline in migration rate of the
unemployed into the State.
2) an extension of Unemployment Insurance benefits
from 26 weeks to 39 weeks which immediately
decreased the number of unemployed entering
welfare.
3) they ignore increased service costs which in
fact drove the total welfare costs up over
$100 million.
GERALO, FORD LIBRARY
3
CHART 1
UNEMPLOYMENT AND WELFARE
California
unemployment
Total AFDC
New AFDC-U
rate
applications
applications
1967
5.7
144,648
33,136
1968
5.4
162,475
34,408
1969
5.2
211,313
46,851
1970
7.2
319,187
97,302
1971
8.8
285,537
87,737
Reagan welfare
plan instituted
1972
7.6
252,767
66,361
1973
7.0
248,973
56,341
CHART 2
UNEMPLOYMENT AND WELFARE IN 1971
Month
Unemployment rate
AFDC-U caseload
January
9.0
66,000
February
8.6
67,000
March
9.0
72,000
April
9.2
68,000
May
9.3
65,000
June
9.1
62,000
July
8.8
58,000
August
8.9
56,000
September
8.7
54,000
October
8.5
52,000
November
8.0
50,000
December
8.1
51,000
FORD & LIBRARY GERALD
4
TAX RELIEF AND BUDGET SURPLUS
Statements:
a) An $850 million surplus was created and
returned to California taxpayers.
b) A massive tax relief bill was originated
and signed which resulted in a $378 million
saving to California property owners and
$110 million saving to renters.
Facts:
a) The $850 million surplus was not the result
of State government saving, but rather a
serious miscalculation in which Reagan
"overtaxed" in 1967 through the levy of a
enormous $943 million tax increase. While
the tax increase was permanent, the rebate
was a one-shot, temporary form of relief in
1969, preceding the 1970 election.
b) The "tax relief" which reduced property
taxes $488 million was not "relief" and was
in no way the result of sound management of
the State. The property tax relief was'
allowed or offset by: 1) a Federal General
Revenue sharing surplus; 2) a major increase in
the State sales tax; 3) a strong business
climate. In short the "relief" was offset
by other Federal and State tax revenues and
did not "relieve" the taxpayer.
Discussion:
The Reagan years were a period of unprecedented tax
increases for the State of California. During the eight
years of the Reagan administration:
State personal income taxes went up 500%
bank and corporation taxes went up 100%
Governor Reagan was a "big spender" and these were
the biggest tax increases in the history of the
State.
While in the years immediately preceding election
years (1969 and 1973), the Governor enacted major
tax relief, the relief was temporary, while the
tax increases were permanent.
GERALD FORD LIBRARY
5
The three major tax increases were:
1967 -- $943 million ($280 million went
to property tax relief)
1971 -- $488 million ($150 million went
to property tax relief)
1972 ---- $682 million ($650 million went
to property tax relief)
In short, permanent taxes increased sharply, and
short term relief was more than offset by the higher
permanent taxes.
Significant tax increases occurred in the areas of:
income taxes
capital gains taxes
bank and corporation taxes
inheritance taxes
sales taxes
cigarette taxes
liquor taxes
In a test of the popular support for the Reagan tax
policies, the Governor took his major tax reform
proposal to the voters in 1973 in the form of a
statewide initiative. The measure was defeated by an
overwhelming majority.
FORD & LIBRAR GERALD
6
SIZE OF GOVERNMENT IN CALIFORNIA
Statement:
The size of the California State Government was
kept constant.
Fact:
During the eight years of the Reagan administration,
the size of the California State Budget increased
from $4.6 billion to $10.2 billion. In short,
Reagan more than doubled the size of the State
government during his administration. This represented
unprecedented growth, far beyond that accomplished
by his Democratic predecessors.
Discussion:
Supporters of the Reagan administration point out
that during his eight years expenditures for State
operations only rose from $2.2 billion to $3.5 billion
and that State assistance to local government rose
from $2.4 billion to $6.7 billion. Thus they contend
that the size of State government (State operations)
rose only a little over $1 billion. This type of
budget is totally erroneous. If it were applied to
the Federal budget, it would mean that Federal
assistance to States should not be counted in the
budget. This would knock out over $60 billion from
the Federal budget. Extending this logic we could
also probably eliminate from the Federal budget
assistance to individuals and foreign aid.
In short, using Governor Reagan's bookkeeping systems,
nearly three quarters of the Federal budget could be
disregarded in calculating the "size" and growth of
the Federal government.
FORD & LIBRARY GERALD
QUESTION:
Governor Reagan claims to have kept the size of
California State Government constant and to have
"blue penciled" spending increases. Could his
approach help slow the enormous growth of Federal
spending?
ANSWER:
I'm not sure how Mr. Reagan achieved his "blue
pencil" image. The facts are that the California
State Budget grew from $4.6 billion to $10.2 billion
during the eight years of his leadership. The more
than doubling of California expenditures was unpre-
cedented in the history of the State and fueled
massive tax increases.
The Federal government is currently overcoming a
serious problem of inflation and a large Federal
deficit. I don't think we can afford the style of
fiscal management practiced by Mr. Reagan in California.
FORD & LIBRARY UERALD
QUESTION:
Governor Reagan claims to be a fiscal conservative.
He claims to have returned an $850 million surplus
to California taxpayers and to have originated a
$488 million property tax relief measure. Is he
conservative and are his policies sound?
ANSWER:
Governor Reagan was the biggest "big spender" in
California history, outspending his Democratic
predecessors by unprecedented margins.
During the eight years Reagan was Governor, he raised
State personal income taxes by over 500% and bank and
corporation taxes by 100%.
The return of $850 million to the taxpayers, immediately
before an election year, was necessitated by mis-
calculations which resulted in massive overtaxing in
prior years.
The property tax "relief" was not relief at all, but
was more than offset by rises in the sales tax, the
State income tax, and Federal assistance.
It's also important to note that while the returns to the
taxpayers were one-shot, temporary situations, all of the
massive tax increases were permanent.
In a major test of voter attitudes toward his policies,
the Governor took his 1973 tax reform proposal to the
people in the form of a statewide initiative. It was
soundly defeated by an overwhelming majority of the
voters.
FORD & LIBRARY GERALD
QUESTION:
The Reagan Welfare Plan in California has been hailed
by some as the answer to Federal welfare problems.
Is it true that the Reagan Plan resulted in major
reductions of welfare caseload and welfare costs?
ANSWER:
Absolutely not. In the first place, the Reagan Plan was
never fully enacted in California. Much of what was
enacted was subsequently invalidated by the State and
Federal courts and by HEW. The remainder of the plan
had little effect in the reduction of costs or case-
loads.
The act actually appears to have generated new welfare
costs of $100 million, and the costs of reinstating
those illegally discontinued may eventually run as high
as $25 million.
The so-called "savings" claimed by Mr. Reagan were the
result of overprojecting future welfare costs and taking
credit for actual costs not approaching his projections.
The Reagan Plan was instituted about the time that
statewide unemployment reached its peak in 1971. When
state unemployment decreased, welfare rolls sharply
decreased. Reagan takes credit for this decrease although
it is really due to a change in the Federal and State
economy due to such factors as the price freeze of 1971,
extension of unemployment benefits, and massive Federal
assistance to the State in the form of defense contracts
and emergency assistance to Lockheed.
In short, Federal policies which improved the California
economy helped ease the California welfare mess, not the
Reagan welfare plan.
FORD & LIBRAR
BRIEFING ANALYSIS
REAGAN RECORD IN CALIFORNIA ------
TAB 1: LAXALT LETTER FOR REAGAN
TAB 2: FACT SHEET -- REAGAN RECORD
TAB 3: I & A's
GERALD R. FORD LIBRAPA
NEVADA
United States Senate
WASHINGTON, D.C. 20510
Fellow American,
The Reagan for President Campaign is going very well, but faces a very
difficult situation.
The Ford-Rockefeller team is campaigning intensely around the nation and
especially in the nation's first Presidential Primary state, New Hampshire.
Although neither the President nor the Vice President were selected by
their Party nor elected by the people, they have successfully taken advantage
of their positions.
Already they have amassed hundreds of thousands of dollars for their
primary battles, and there is no doubt that thanks to the Rockefeller influence
they can raise literally millions more.
Ronald Reagan has received a very warm reception to his speeches across
the country and I can tell you as a loyal supporter that in the very near future he
will explain to the nation why he is running for President.
But Ronald Reagan has a problem. Funds are very tight.
He has no "sugar-daddies" bankrolling his campaign, but must count upon
the loyal support of thousands of Americans such as yourself.
Due to the distortions of the biased news commentators, Ronald Reagan
must have hundreds of thousands, even millions of dollars for TV time so that
he may speak directly to the American people.
He will tell them that as Governor of California he was successful in:
reducing the number of individuals on welfare rolls by 400, 000,
while at the same time those truly needy individuals received a
43% increase in benefits!
-creating and returning an $850 million surplus to the California
taxpayers
keeping the size of the California state government constant
originating and signing a massive tax relief bill which resulted
in a $378 million saving to California's property owners and a
$110 million saving to renters.
&
FORD
As provided in federal legislation, Citizens for Reagan may accept individual contributions up to $1,000 (for example, a husband and V
$1,000) prior to a nominating convention; this may be repeated following the convention. However, we are not able to accept either (a) a
GERALD
whatever, or (b) any individual personal contributions over $1,000. A copy of our report will be filed with the Federal Election Commission
for purchase from that office in Washington, D.C.
LIBRARY
Ronald Reagan can and will provide the leadership this nation needs so
desperately, but he must have your support today!
Money is needed immediately for the fast approaching primary battles
in New Hampshire and Florida. Thousands of dollars are needed for postage,
campaign staffs, printing, advertising, etc.
Ronald Reagan needs your dollars today!
The Reagan Campaign is truly a campaign of the people. It will take a
total commitment and the tireless efforts and personal sacrifice of thousands
and thousands of Americans if we are to be successful in electing Ronald
Reagan as President of the United States.
Send your contribution to Ronald Reagan today
$20, $50, $100, or as
much as $1,000 is needed immediately!
With your support and faith and work I know we will carry the day for
freedom.
The Reagan Campaign may just be the most important election of your
lifetime. This time
before it is too late for our nation
make your total
commitment
help elect Ronald Reagan President of the United States!
Please send whatever you possibly can.
today!
Sincerely,
Paine
Paul Laxalt, Chairman
Citizens for Reagan
PL/kme
P.S. Send the enclosed post card or your personal letter to Ronald Reagan
letting him know you support his Presidential campaign and please
return your contribution in the enclosed envelope today. Thank you.
Absolutely no taxpayers' funds have been used in the preparation of this correspondence.
BERALD R. FORD LIBRAND
FACT SHEET
REAGAN RECORD IN CALIFORNIA
WELFARE
Statements:
a) Welfare rolls reduced by 400,000
b) Welfare rolls reduced by 24% per year
c) $1 billion in taxes saved over two years
d) Significantly decreased fraud and overpayment
Facts:
- The Reagan plan was not fully enacted.
- Much of what did become law was subsequently
invalidated by the State and Federal courts
or by HEW.
- The remainder had little actual effect on the
reduction of costs or of the caseload, which
were curbed for other reasons, generally
related to upswing in the national economy.
- Actual costs were not lowered in the 1 1/2
years immediately following the act. The
Reagan plan, in fact, generated new welfare
costs of $100 million.
- The raw number of AFDC recipients (although
not the number of eligible families) did
shrink somewhat, but not nearly to the
extent claimed by Reagan.
Discussion:
The welfare cost savings and the reduction in case-
loads are significantly misstated and generally did
not exist at all. They are based upon projecting
"what would have happened" and comparing these
projections with actual experience after California
Welfare Reform was instituted in October 1971. Among
the ways in which these "projections" are significantly
overstated (and consequently savings are overstated)
are the following:
1) They project the high national unemployment
trends of early 1971 which were reversed
about the same time the California law was
enacted.
FORD & GERALD LIBRARY
2
2) They project the heavy migration pre-1971
trends of the 1960's which had signifi-
cantly slowed in 1971.
3) They project birthrate trends significantly
above the actual trends following 1971.
4) They project rising pre-1971 trend in
caseload which was due to legal challenges
to the State programs which caused the
percent of eligibles who participated in
the program to rise from 56% in 1967 to
nearly 100% in 1971. In short, this trend
had saturated and stopped in 1971, but was
projected anyway.
5) Both Los Angeles and the State double
counted the same 20,000 recipients. When
the State stopped double counting them, it
called this a caseload "reduction" of
20,000.
Further, they take credit for reduced caseload and
savings which resulted from factors unrelated to
the California legislation. These factors
included:
1) a decline in State unemployment (see
charts 1 and 2) from 8.8 in 1971 to 7.0
in 1973 due to:
a) temporary wage-price freeze enacted
nationally in August 1971
b) major Federal stimulation of the
California economy through new defense
contracts and the $250 million
Lockheed bailout
c) a decline in migration rate of the
unemployed into the State.
2) an extension of Unemployment Insurance benefits
from 26 weeks to 39 weeks which immediately
decreased the number of unemployed entering
welfare.
3) they ignore increased service costs which in
fact drove the total welfare costs up over
$100 million.
FORD LIBRARY & GERALD
3
CHART 1
UNEMPLOYMENT AND WELFARE
California
unemployment
Total AFDC
New AFDC-U
rate
applications
applications
1967
5.7
144,648
33,136
1968
5.4
162,475
34,408
1969
5.2
211,313
46,851
1970
7.2
319,187
97,302
1971
8.8
285,537
87,737 Reagan welfare
plan instituted
1972
7.6
252,767
66,361
1973
7.0
248,973
56,341
CHART 2
UNEMPLOYMENT AND WELFARE IN 1971
Month
Unemployment rate
AFDC-U caseload
January
9.0
66,000
February
8.6
67,000
March
9.0
72,000
April
9.2
68,000
May
9.3
65,000
June
9.1
62,000
July
8.8
58,000
August
8.9
56,000
September
8.7
54,000
October
8.5
52,000
November
8.0
50,000
December
8.1
51,000
FORD & LIBRARY GERALD
4
TAX RELIEF AND BUDGET SURPLUS
Statements:
a) An $850 million surplus was created and
returned to California taxpayers.
b) A massive tax relief bill was originated
and signed which resulted in a $378 million
saving to California property owners and
$110 million saving to renters.
Facts:
a) The $850 million surplus was not the result
of State government saving, but rather a
serious miscalculation in which Reagan
"overtaxed" in 1967 through the levy of a
enormous $943 million tax increase. While
the tax increase was permanent, the rebate
was a one-shot, temporary form of relief in
1969, preceding the 1970 election.
b) The "tax relief" which reduced property
taxes $488 million was not "relief" and was
in no way the result of sound management of
the State. The property tax relief was'
allowed or offset by: 1) a Federal General
Revenue sharing surplus; 2) a major increase in
the State sales tax; 3) a strong business
climate. In short the "relief" was offset
by other Federal and State tax revenues and
did not "relieve" the taxpayer.
Discussion:
The Reagan years were a period of unprecedented tax
increases for the State of California. During the eight
years of the Reagan administration:
State personal income taxes went up 500%
bank and corporation taxes went up 100%
Governor Reagan was a "big" spender" and these were
the biggest tax increases in the history of the
State.
While in the years immediately preceding election
years (1969 and 1973), the Governor enacted major
tax relief, the relief was temporary, while the
tax increases were permanent.
FORD & LIBRARY
5
The three major tax increases were:
1967 -- $943 million ($280 million went
to property tax relief)
.
1971 -- $488 million ($150 million went
to property tax relief)
1972 -- $682 million ($650 million went
to property tax relief)
In short, permanent taxes increased sharply, and
short term relief was more than offset by the higher
permanent taxes.
Significant tax increases occurred in the areas of:
income taxes
capital gains taxes
bank and corporation taxes
inheritance taxes
sales taxes
cigarette taxes
liquor taxes
In a test of the popular support for the Reagan tax
policies, the Governor took his major tax reform
proposal to the voters in 1973 in the form of a
statewide initiative. The measure was defeated by an
overwhelming majority.
FORD & LIBRARY MARATO
6
SIZE OF GOVERNMENT IN CALIFORNIA
Statement:
The size of the California State Government was
kept constant.
Fact:
During the eight years of the Reagan administration,
the size of the California State Budget increased
from $4.6 billion to $10.2 billion. In short,
Reagan more than doubled the size of the State
government during his administration. This represented
unprecedented growth, far beyond that accomplished
by his Democratic predecessors.
Discussion:
Supporters of the Reagan administration point out
that during his eight years expenditures for State
operations only rose from $2.2 billion to $3.5 billion
and that State assistance to local government rose
from $2.4 billion to $6.7 billion. Thus they contend
that the size of State government (State operations)
rose only a little over $1 billion. This type of
budget is totally erroneous. If it were applied to
the Federal budget, it would mean that Federal
assistance to States should not be counted in the
budget. This would knock out over $60 billion from
the Federal budget. Extending this logic we could
also probably eliminate from the Federal budget
assistance to individuals and foreign aid.
In short, using Governor Reagan's bookkeeping systems,
nearly three quarters of the Federal budget could be
disregarded in calculating the "size" and growth of
the Federal government.
FORD LIBRARY & GERALD
QUESTION:
Governor Reagan claims to have kept the size of
California State Government constant and to have
"blue penciled" spending increases. Could his
approach help slow the enormous growth of Federal
spending?
ANSWER:
I'm not sure how Mr. Reagan achieved his "blue
pencil" image. The facts are that the California
State Budget grew from $4.6 billion to $10.2 billion
during the eight years of his leadership. The more
than doubling of California expenditures was unpre-
cedented in the history of the State and fueled
massive tax increases.
The Federal government is currently overcoming a
serious problem of inflation and a large Federal
deficit. I don't think we can afford the style of
fiscal management practiced by Mr. Reagan in California.
FORD & LIBRARY
QUESTION:
Governor Reagan claims to be a fiscal conservative.
He claims to have returned an $850 million surplus
to California taxpayers and to have originated a
$488 million property tax relief measure. Is he
conservative and are his policies sound?
ANSWER:
Governor Reagan was the biggest "big spender" in
California history, outspending his Democratic
predecessors by unprecedented margins.
During the eight years Reagan was Governor, he raised
State personal income taxes by over 500% and bank and
corporation taxes by 100%.
The return of $850 million to the taxpayers, immediately
before an election year, was necessitated by mis-
calculations which resulted in massive overtaxing in
prior years.
The property tax "relief" was not relief at all, but
was more than offset by rises in the sales tax, the
State income tax, and Federal assistance.
It's also important to note that while the returns to the
taxpayers were one-shot, temporary situations, all of the
massive tax increases were permanent.
In a major test of voter attitudes toward his policies,
the Governor took his 1973 tax reform proposal to the
people in the form of a statewide initiative. It was
soundly defeated by an overwhelming majority of the
voters.
GERALD
FORD LIBRARY &
QUESTION:
The Reagan Welfare Plan in California has been hailed
by some as the answer to Federal welfare problems.
Is it true that the Reagan Plan resulted in major
reductions of welfare caseload and welfare costs?
ANSWER:
Absolutely not. In the first place, the Reagan Plan was
never fully enacted in California. Much of what was
enacted was subsequently invalidated by the State and
Federal courts and by HEW. The remainder of the plan
had little effect in the reduction of costs or case-
loads.
The act actually appears to have generated new welfare
costs of $100 million, and the costs of reinstating
those illegally discontinued may eventually run as high
as $25 million.
The so-called "savings" claimed by Mr. Reagan were the
result of overprojecting future welfare costs and taking
credit for actual costs not approaching his projections.
The Reagan Plan was instituted about the time that
statewide unemployment reached its peak in 1971. When
state unemployment decreased, welfare rolls sharply
decreased. Reagan takes credit for this decrease although
it is really due to a change in the Federal and State
economy due to such factors as the price freeze of 1971,
extension of unemployment benefits, and massive Federal
assistance to the State in the form of defense contracts
and emergency assistance to Lockheed.
In short, Federal policies which improved the California
economy helped ease the California welfare mess, not the
Reagan welfare plan.
FORD & LIBRARY PERALD
BRIEFING ANALYSIS
REAGAN RECORD IN CALIFORNIA ---
TAB 1: LAXALT LETTER FOR REAGAN
TAB 2: FACT SHEET -- REAGAN RECORD
TAB 3: Q & A's
GERALD LIBRARY GERALDR FORD
PAUL LAXALT
NEVADA
United States Senate
WASHINGTON, D.C. 20510
Fellow American,
The Reagan for President Campaign is going very well, but faces a very
difficult situation.
The Ford-Rockefeller team is campaigning intensely around the nation and
especially in the nation's first Presidential Primary state, New Hampshire.
Although neither the President nor the Vice President were selected by
their Party nor elected by the people, they have successfully taken advantage
of their positions.
Already they have amassed hundreds of thousands of dollars for their
primary battles, and there is no doubt that thanks to the Rockefeller influence
they can raise literally millions more.
Ronald Reagan has received a very warm reception to his speeches across
the country and I can tell you as a loyal supporter that in the very near future he
will explain to the nation why he is running for President.
But Ronald Reagan has a problem. Funds are very tight.
He has no "sugar-daddies" bankrolling his campaign, but must count upon
the loyal support of thousands of Americans such as yourself.
Due to the distortions of the biased news commentators, Ronald Reagan
must have hundreds of thousands, even millions of dollars for TV time SO that
he may speak directly to the American people.
He will tell them that as Governor of California he was successful in:
-reducing the number of individuals on welfare rolls by 400, 000,
while at the same time those truly needy individuals received a
43% increase in benefits!
creating and returning an $850 million surplus to the California
taxpayers
-keeping the size of the California state government constant
-originating and signing a massive tax relief bill which resulted
in a $378 million saving to California's property owners and a
$110 million saving to renters.
As provided in federal legislation, Citizens for Reagan may accept individual contributions UD to $1,000 (for example, a husband and V
convention: this may be repeated following the convention. However, we are not able to accept either (a) a
of
our
will
be
filed
with
the
Federal
Election
Commission
GERALD FORD LIBRAR,
Ronald Reagan can and will provide the leadership this nation needs so
desperately, but he must have your support today!
Money is needed immediately for the fast approaching primary battles
in New Hampshire and Florida. Thousands of dollars are needed for postage,
campaign staffs, printing, advertising, etc.
Ronald Reagan needs your dollars today!
The Reagan Campaign is truly a campaign of the people. It will take a
total commitment and the tireless efforts and personal sacrifice of thousands
and thousands of Americans if we are to be successful in electing Ronald
Reagan as President of the United States.
Send your contribution to Ronald Reagan today
$20, $50, $100, or as
much as $1, 000 is needed immediately!
With your support and faith and work I know we will carry the day for
freedom.
The Reagan Campaign may just be the most important election of your
lifetime. This time before it is too late for our nation make your total
commitment
help elect Ronald Reagan President of the United States
Please send whatever you possibly can.
today!
Sincerely,
Ta.
Paul Laxalt, Chairman
Citizens for Reagan
PL/kme
P.S. Send the enclosed post card or your personal letter to Ronald Reagan
letting him know you support his Presidential campaign and please
return your contribution in the enclosed envelope today. Thank you.
Absolutely no taxpayers' funds have been used in the preparation of this correspondence.
GERALD FORD LIBRARY
FACT SHEET
REAGAN RECORD IN CALIFORNIA
WELFARE
Statements:
a) Welfare rolls reduced by 400,000
b) Welfare rolls reduced by 24% per year
c) $1 billion in taxes saved over two years
d) Significantly decreased fraud and overpayment
Facts:
- The Reagan plan was not fully enacted.
- Much of what did become law was subsequently
invalidated by the State and Federal courts
or by HEW.
- The remainder had little actual effect on the
reduction of costs or of the caseload, which
were curbed for other reasons, generally
related to upswing in the national economy.
- Actual costs were not lowered in the 1 1/2
years immediately following the act. The
Reagan plan, in fact, generated new welfare
costs of $100 million.
- The raw number of AFDC recipients (although
not the number of eligible families) did
shrink somewhat, but not nearly to the
extent claimed by Reagan.
Discussion:
The welfare cost savings and the reduction in case-
loads are significantly misstated and generally did
not exist at all. They are based upon projecting
"what would have happened" and comparing these
projections with actual experience after California
Welfare Reform was instituted in October 1971. Among
the ways in which these "projections" are significantly
overstated (and consequently savings are overstated)
are the following:
1) They project the high national unemployment
trends of early 1971 which were reversed
about the same time the California law was
enacted.
FORD & 0740 LIBRAR
2
2) They project the heavy migration pre-1971
trends of the 1960's which had signifi-
cantly slowed in 1971.
3) They project birthrate trends significantly
above the actual trends following 1971.
4) They project rising pre-1971 trend in
caseload which was due to legal challenges
to the State programs which caused the
percent of eligibles who participated in
the program to rise from 56% in 1967 to
nearly 100% in 1971. In short, this trend
had saturated and stopped in 1971, but was
projected anyway.
5) Both Los Angeles and the State double
counted the same 20,000 recipients. When
the State stopped double counting them, it
called this a caseload "reduction" of.
20,000.
Further, they take credit for reduced caseload and
savings which resulted from factors unrelated to
the California legislation. These factors
included:
1) a decline in State unemployment (see
charts 1 and 2) from 8.8 in 1971 to 7.0
in 1973 due to:
a)
temporary wage-price freeze enacted
nationally in August 1971
b) major Federal stimulation of the
California economy through new defense
contracts and the $250 million
Lockheed bailout
c) a decline in migration rate of the
unemployed into the State.
2) an extension of Unemployment Insurance benefits
from 26 weeks to 39 weeks which immediately
decreased the number of unemployed entering
welfare.
3) they ignore increased service costs which in
fact drove the total welfare costs up over
$100 million.
GERALD FORD
3
CHART 1
UNEMPLOYMENT AND WELFARE
California
unemployment
Total AFDC
New AFDC-U
rate
applications
applications
1967
5.7
144,648
33,136
1968
5.4
162,475
34,408
1969
5.2
211,313
46,851
1970
7.2
319,187
97,302
1971
8.8
285,537
87,737
Reagan welfare
plan instituted
1972
7.6
252,767
66,361
1973
7.0
248,973
56,341
CHART 2
UNEMPLOYMENT AND WELFARE IN 1971
Month
Unemployment rate
AFDC-U caseload
January
9.0
66,000
February
8.6
67,000
March
9.0
72,000
April
9.2
68,000
May
9.3
65,000
June
9.1
62,000
July
8.8
58,000
August
8.9
56,000
September
8.7
54,000
October
8.5
52,000
November
8.0
50,000
December
8.1
51,000
FORD is LIBRARY GERALD
4
TAX RELIEF AND BUDGET SURPLUS
Statements:
a) An $850 million surplus was created and
returned to California taxpayers.
b) A massive tax relief bill was originated
and signed which resulted in a $378 million
saving to California property owners and
$110 million saving to renters.
Facts:
a) The $850 million surplus was not the result
of State government saving, but rather a
serious miscalculation in which Reagan
"overtaxed" in 1967 through the levy of a
enormous $943 million tax increase. While
the tax increase was permanent, the rebate
was a one-shot, temporary form of relief in
1969, preceding the 1970 election.
b) The "tax relief" which reduced property
taxes $488 million was not "relief" and was
in no way the result of sound management of
the State. The property tax relief was'
allowed or offset by: 1) a Federal General
Revenue sharing surplus; 2) a major increase in
the State sales tax; 3) a strong business
climate. In short the "relief" was offset
by other Federal and State tax revenues and
did not "relieve" the taxpayer.
Discussion:
The Reagan years were a period of unprecedented tax
increases for the State of California. During the eight
years of the Reagan administration:
State personal income taxes went up 500%
bank and corporation taxes went up 100%
Governor Reagan was a "big spender" and these were
the biggest tax increases in the history of the
State.
While in the years immediately preceding election
years (1969 and 1973), the Governor enacted major
tax relief, the relief was temporary, while the
tax increases were permanent.
CRALD FORD LIBRARY
5
The three major tax increases were:
1967 -- $943 million ($280 million went
to property tax relief)
-
1971 --- $488 million ($150 million went
to property tax relief)
1972 -- $682 million ($650 million went
to property tax relief)
In short, permanent taxes increased sharply, and
short term relief was more than offset by the higher
permanent taxes.
Significant tax increases occurred in the areas of:
income taxes
capital gains taxes
bank and corporation taxes
inheritance taxes
sales taxes
cigarette taxes
liquor taxes
In a: test of the popular support for the Reagan tax
policies, the Governor took his major tax reform
proposal to the voters in 1973 in the form of a
statewide initiative. The measure was defeated by an
overwhelming majority.
GERALD LIBRARY ? FORD
6
SIZE OF GOVERNMENT IN CALIFORNIA
Statement:
The size of the California State Government was
kept constant.
Fact:
During the eight years of the Reagan administration,
the size of the California State Budget increased
from $4.6 billion to $10.2 billion. In short,
Reagan more than doubled the size of the State
government during his administration. This represented
unprecedented growth, far beyond that accomplished
by his Democratic predecessors.
Discussion:
Supporters of the Reagan administration point out
that during his eight years expenditures for State
operations only rose from $2.2 billion to $3.5 billion
and that State assistance to local government rose
from $2.4 billion to $6.7 billion. Thus they contend
that the size of State government (State operations)
rose only a little over $1 billion. This type of
budget is totally erroneous. If it were applied to
the Federal budget, it would mean that Federal
assistance to States should not be counted in the
budget. This would knock out over $60 billion from
the Federal budget. Extending this logic we could
also probably eliminate from the Federal budget
assistance to individuals and foreign aid.
In short, using Governor Reagan's bookkeeping systems,
nearly three quarters of the Federal budget could be
disregarded in calculating the "size" and growth of
the Federal government.
GERALD FORD LIBRARY
QUESTION:
The Reagan Welfare Plan in California has been hailed
by some as the answer to Federal welfare problems.
Is it true that the Reagan Plan resulted in major
reductions of welfare caseload and welfare costs?
ANSWER:
Absolutely not. In the first place, the Reagan Plan was
never fully enacted in California. Much of what was
enacted was subsequently invalidated by the State and
Federal courts and by HEW. The remainder of the plan
had little effect in the reduction of costs or case-
loads.
The act actually appears to have generated new welfare
costs of $100 million, and the costs of reinstating
those illegally discontinued may eventually run as high
as $25 million.
The so-called "savings" claimed by Mr. Reagan were the
result of overprojecting future welfare costs and taking
credit for actual costs not approaching his projections.
The Reagan Plan was instituted about the time that
statewide unemployment reached its peak in 1971. When
state unemployment decreased, welfare rolls sharply
decreased. Reagan takes credit for this decrease although
it is really due to a change in the Federal and State
economy due to such factors as the price freeze of 1971,
extension of unemployment benefits, and massive Federal
assistance to the State in the form of defense contracts
and emergency assistance to Lockheed.
In short, Federal policies which improved the California
economy helped ease the California welfare mess, not the
Reagan welfare plan.
FORD i LIBRARY GERALD
QUESTION:
Governor Reagan claims to be a fiscal conservative.
He claims to have returned an $850 million surplus
to California taxpayers and to have originated a
$488 million property tax relief measure. Is he
conservative and are his policies sound?
ANSWER:
Governor Reagan was the biggest "big spender" in
California history, outspending his Democratic
predecessors by unprecedented margins.
During the eight years Reagan was Governor, he raised
State personal income taxes by over 500% and bank and
corporation taxes by 100%.
The return of $850 million to the taxpayers, immediately
before an election year, was necessitated by mis-
calculations which resulted in massive overtaxing in
prior years.
The property tax "relief" was not relief at all, but
was more than offset by rises in the sales tax, the
State income tax, and Federal assistance.
It's also important to note that while the returns to the
taxpayers were one-shot, temporary situations, all of the
massive tax increases were permanent.
In a major test of voter attitudes toward his policies,
the Governor took his 1973 tax reform proposal to the
people in the form of a statewide initiative. It was
soundly defeated by an overwhelming majority of the
voters.
BERALD FORD
QUESTION:
Governor Reagan claims to have kept the size of
California State Government constant and to have
"blue penciled" spending increases. Could his
approach help slow the enormous growth of Federal
spending?
ANSWER:
I'm not sure how Mr. Reagan achieved his "blue
pencil" image. The facts are that the California
State Budget grew from $4.6 billion to $10.2 billion
during the eight years of his leadership. The more
than doubling of California expenditures was unpre-
cedented in the history of the State and fueled
massive tax increases.
The Federal government is currently overcoming a
serious problem of inflation and a large Federal
deficit. I don't think we can afford the style of
fiscal management, practiced by Mr. Reagan in California.
FORD i LIBRARY GERALD
BRIEFING ANALYSIS
REAGAN RECORD IN CALIFORNIA
-------------------------
TAB 1: LAXALT LETTER FOR REAGAN
TAB 2: FACT SHEET -- REAGAN RECORD
TAB : 3: 0 & A's
GERALD R FORD LIBRARY
PAUL LAXALT
NEVADA
United States Senate
WASHINGTON, D.C. 20510
Fellow American,
The Reagan for President Campaign is going very well, but faces a very
difficult situation.
The Ford-Rockefeller team is campaigning intensely around the nation and
especially in the nation's first Presidential Primary state, New Hampshire.
Although neither the President nor the Vice President were selected by
their Party nor elected by the people, they have successfully taken advantage
of their positions.
Already they have amassed hundreds of thousands of dollars for their
primary battles, and there is no doubt that thanks to the Rockefeller influence
they can raise literally millions more.
Ronald Reagan has received a very warm reception to his speeches across
the country and I can tell you as a loyal supporter that in the very near future he
will explain to the nation why he is running for President.
But Ronald Reagan has a problem. Funds are very tight.
He has no "sugar-daddies" bankrolling his campaign, but must count upon
the loyal support of thousands of Americans such as yourself.
Due to the distortions of the biased news commentators, Ronald Reagan
must have hundreds of thousands, even millions of dollars for TV time SO that
he may speak directly to the American people.
He will tell them that as Governor of California he was successful in:
reducing the number of individuals on welfare rolls by 400, 000,
while at the same time those truly needy individuals received a
43% increase in benefits!
creating and returning an $850 million surplus to the California
taxpayers
keeping the size of the California state government constant
originating and signing a massive tax relief bill which resulted
in a $378 million saving to California's property owners and a
$110 million saving to renters.
DO provided in federal legistation, Citizens for Reagan may accept individual contributions up to $1,000 (for example, a husband and V
convention: this may be repeated following the convention. However, we are not able to accept either (A) a
our
report
will
be
filed
with
the
Federal
Election
Commission
GERALD FORD LIBRARY
Ronald Reagan can and will provide the leadership this nation needs so
desperately, but he must have your support today!
Money is needed immediately for the fast approaching primary battles
in New Hampshire and Florida. Thousands of dollars are needed for postage,
campaign staffs, printing, advertising, etc.
Ronald Reagan needs your dollars today!
The Reagan Campaign is truly a campaign of the people. It will take a
total commitment and the tireless efforts and personal sacrifice of thousands
and thousands of Americans if we are to be successful in electing Ronald
Reagan as President of the United States.
Send your contribution to Ronald Reagan today
$20, $50, $100, or as
much as $1,000 is needed immediately!
With your support and faith and work I know we will carry the day for
freedom.
The Reagan Campaign may just be the most important election of your
lifetime. This time before it is too late for our nation make your total
commitment
help elect Ronald Reagan President of the United States I
Please send whatever you possibly can
today!
Sincerely,
Tax
Paul Laxalt, Chairman
Citizens for Reagan
PL/kme
P.S. Send the enclosed post card or your personal letter to Ronald Reagan
letting him know you support his Presidential campaign and please
return your contribution in the enclosed envelope today. Thank you.
Absolutely no tempayers' funds have been word in the preparation or this correspondence.
GERALD FORD LIBRARY
FACT SHEET
REAGAN RECORD IN CALIFORNIA
WELFARE
Statements:
a) Welfare rolls reduced by 400,000
b) Welfare rolls reduced by 24% per year
c) $1 billion in taxes saved over two years
d) Significantly decreased fraud and overpayment
Facts:
- The Reagan plan was not fully enacted.
- Much of what did become law was subsequently
invalidated by the State and Federal courts
or by HEW.
SATU The remainder had little actual effect on the
reduction of costs or of the caseload, which
were curbed for other reasons, generally
related to upswing in the national economy.
- Actual costs were not lowered in the 1 1/2
years immediately following the act. The
Reagan plan, in fact, generated new welfare
costs of $100 million.
- The raw number of AFDC recipients (although
not the number of eligible families) did
shrink somewhat, but not nearly to the
extent claimed by Reagan.
Discussion:
The welfare cost savings and the reduction in case-
loads are significantly misstated and generally did
not exist at all. They are based upon projecting
"what would have happened" and comparing these
projections with actual experience after California
Welfare Reform was instituted in October 1971. Among
the ways in which these "projections" are significantly
overstated (and consequently savings are overstated)
are the following:
1) They project the high national unemployment
trends of early 1971 which were reversed
about the same time the California law was
enacted.
&
FORD
GERALD
LIBRARY
2
2) They project the heavy migration pre-1971
trends of the 1960's which had signifi-
cantly slowed in 1971.
3) They project birthrate trends significantly
above the actual trends following 1971.
4) They project rising pre-1971 trend in
caseload which was due to legal challenges
to the State programs which caused the
percent of eligibles who participated in
the program to rise from 56% in 1967 to
nearly 100% in 1971. In short, this trend
had saturated and stopped in 1971, but was
projected anyway.
5) Both Los Angeles and the State double
counted the same 20,000 recipients. When
the State stopped double counting them, it
called this a caseload "reduction" of.
20,000.
Further, they take credit for reduced caseload and
savings which resulted from factors unrelated to
the California legislation. These factors
included:
1) a decline in State unemployment (see
charts 1 and 2) from 8.8 in 1971 to 7.0
in 1973 due to:
a) temporary wage-price freeze enacted
nationally in August 1971
b) major Federal stimulation of the
California economy through new defense
contracts and the $250 million
Lockheed bailout
c) a decline in migration rate of the
unemployed into the State.
2) an extension of Unemployment Insurance benefits
from 26 weeks to 39 weeks which immediately
decreased the number of unemployed entering
welfare.
3) they ignore increased service costs which in
fact drove the total welfare costs up over
$100 million.
GERALD FORD VIBRARY
3
CHART 1
UNEMPLOYMENT AND WELFARE
California
unemployment
Total AFDC
New AFDC-U
rate
applications
applications
1967
5.7
144,648
33,136
1968
5.4
162,475
34,408
1969
5.2
211,313
46,851
1970
7.2
319,187
97,302
1971
8.8
285,537
87,737
Reagan welfare
plan instituted
1972
7.6
252,767
66,361
1973
7.0
248,973
56,341
CHART 2
UNEMPLOYMENT AND WELFARE IN 1971
Month
Unemployment rate
AFDC-U caseload
January
9.0
66,000
February
8.6
67,000
March
9.0
72,000
April
9.2
68,000
May
9.3
65,000
June
9.1
62,000
July
8.8
58,000
August
8.9
56,000
September
8.7
54,000
October
8.5
52,000
November
8.0
50,000
December
8.1
51,000
GERALD FORD LIBRARY
4
TAX RELIEF AND BUDGET SURPLUS
Statements:
a) An $850 million surplus was created and
returned to California taxpayers.
b) A massive tax relief bill was originated
and signed which resulted in a $378 million
saving to California property owners and
$110 million saving to renters.
Facts:
a) The $850 million surplus was not the result
of State government saving, but rather a
serious miscalculation in which Reagan
"overtaxed" in 1967 through the levy of a
enormous $943 million tax increase. While
the tax increase was permanent, the rebate
was a one-shot, temporary form of relief in
1969, preceding the 1970 election.
b) The "tax relief" which reduced property
taxes $488 million was not "relief" and was
in no way the result of sound management of
the State. The property tax relief was
allowed OI offset by: 1) a Federal General
Revenue sharing surplus; 2) a major increase in
the State sales tax; 3) a strong business
climate. In short the "relief" was offset
by other Federal and State tax revenues and
did not "relieve" the taxpayer.
Discussion:
The Reagan years were a period of unprecedented tax
increases for the State of California. During the eight
years of the Reagan administration:
State personal income taxes went up 500%
bank and corporation taxes went up 100%
Governor Reagan was a "big spender" and these were
the biggest tax increases in the history of the
State.
While in the years immediately preceding election
years (1969 and 1973), the Governor enacted major
tax relief, the relief was temporary, while the
tax increases were permanent.
GERALD FORD LIBRARY
5
The three major tax increases were:
1967 --- $943 million ($280 million went
to property tax relief)
1971 -- $488 million ($150 million went
to property tax relief)
1972 --- $682 million ($650 million went
to property tax relief)
In short, permanent taxes increased sharply> and
short term relief was more than offset by the higher
permanent taxes.
Significant tax increases occurred in the areas of:
income taxes
capital gains taxes
bank and corporation taxes
inheritance taxes
sales taxes
cigarette taxes
liquor taxes
In a: test of the popular support for the Reagan tax
policies, the Governor took his major tax reform
proposal to the voters in 1973 in the form of a
statewide initiative. The measure was defeated by an
overwhelming majority.
GERALD FORD LIBRARY
6
SIZE OF GOVERNMENT IN CALIFORNIA
Statement:
The size of the California State Government was
kept constant.
Fact:
During the eight years of the Reagan administration,
the size of the California State Budget increased
from $4.6 billion to $10.2 billion. In short,
Reagan more than doubled the size of the State
government during his administration. This represented
unprecedented growth, far beyond that accomplished
by his Democratic predecessors.
Discussion:
Supporters of the Reagan administration point out
that during his eight years expenditures for State
operations only rose from $2.2 billion to $3.5 billion
and that State assistance to local government rose
from $2.4 billion to $6.7 billion. Thus they contend
that the size of State government (State operations)
rose only a little over $1 billion. This type of
budget is totally erroneous. If it were applied to
the Federal budget, it would mean that Federal
assistance to States should not be counted in the
budget. This would knock out over $60 billion from
the Federal budget. Extending this logic we could
also probably eliminate from the Federal budget
assistance to individuals and foreign aid.
In short, using Governor Reagan's bookkeeping systems,
nearly three quarters of the Federal budget could be
disregarded in calculating the "size" and growth of
the Federal government.
GERALD FORD LIBRARY
QUESTION:
The Reagan Welfare Plan in California has been hailed
by some as the answer to Federal welfare problems.
Is it true that the Reagan Plan resulted in major
reductions of welfare caseload and welfare costs?
ANSWER:
Absolutely not. In the first place, the Reagan Plan was
never fully enacted in California. Much of what was
enacted was subsequently invalidated by the State and
Federal courts and by HEW. The remainder of the plan
had little effect in the reduction of costs or case-
loads.
The act actually appears to have generated new welfare
costs of $100 million, and the costs of reinstating
those illegally discontinued may eventually run as high
as $25 million.
The so-called "savings" claimed by Mr. Reagan were the
result of overprojecting future welfare costs and taking
credit for actual costs not approaching his projections.
The Reagan Plan was instituted about the time that
statewide unemployment reached its peak in 1971. When
state unemployment decreased, welfare rolls sharply
decreased. Reagan takes credit for this decrease although
it is really due to a change in the Federal and State
economy due to such factors as the price freeze of 1971,
extension of unemployment benefits, and massive Federal
assistance to the State in the form of defense contracts
and emergency assistance to Lockheed.
In short, Federal policies which improved the California
economy helped ease the California welfare mess, not the
Reagan welfare plan.
FORD
GERALD
LIBRARY
QUESTION:
Governor Reagan claims to be a fiscal conservative.
He claims to have returned an $850 million surplus
to California taxpayers and to have originated a
$488 million property tax relief measure. Is he
conservative and are his policies sound?
ANSWER:
Governor Reagan was the biggest "big spender" in
California history, outspending his Democratic
predecessors by unprecedented margins.
During the eight years Reagan was Governor, he raised
State personal income taxes by over 500% and bank and
corporation taxes by 100%.
The return of $850 million to the taxpayers, immediately
before an election year, was necessitated by mis-
calculations which resulted in massive overtaxing in
prior years.
The property tax "relief" was not relief at all, but
was more than offset by rises in the sales tax, the
State income tax, and Federal assistance.
It's also important to note that while the returns to the
taxpayers were one-shot, temporary situations, all of the
massive tax increases were permanent.
In a major test of voter attitudes toward his policies,
the Governor took his 1973 tax reform proposal to the
people in the form of a statewide initiative. It was
soundly defeated by an overwhelming majority of the
voters.
GERALD FORD LIBRARY
QUESTION:
Governor Reagan claims to have kept the size of
California State Government constant and to have
"blue penciled" spending increases. Could his
approach help slow the enormous growth of Federal
spending?
ANSWER:
I'm not sure how Mr. Reagan achieved his "blue
pencil" image. The facts are that the California
State Budget grew from $4.6 billion to $10.2 billion
during the eight years of his leadership. The more
than doubling of California expenditures was unpre-
cedented in the history of the State and fueled
massive tax increases.
The Federal government is currently overcoming a
serious problem of inflation and a large Federal
deficit. I don't think we can afford the style of
fiscal management, practiced by Mr. Reagan in California.
FORD & LIBRARY GERALD
THE WHITE HOUSE
WASHINGTON
11-19-75
NOTE FOR: Peter Kaye.
FROM
: RON NESSEN
W hat
Bull Shit
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FORD & LIBRARY GERALD
RHN
101 North Tampa Street
Tampa, Florida 33602
Tampa (813) 229-0404
dae
NOV 18 AM 9 27
St. Petersburg (813) 896-0404
CBS RADIO AFFILIATE
GA
FOR IMMEDIATE RELEASE
REAGAN TAKES TAMPA BAY PRESIDENTIAL POLL
(Tampa, November 5, 1975) Former California Governor
Ronald Reagan easily defeated President Gerald Ford,
and Democrat Jimmy Carter showed surprising strength
against George Wallace in a Presidential poll taken
on WDAE Radio's STAN MAJOR SHOW.
Reagan received 21% of the total vote count as com-
pared to Ford's 13% in a two way race for the GOP
nomination. The total GOP vote percentage was 35%.
Democratic voters in the MAJOR poll made it a close
three-man race with Alabama Governor George Wallace
garnering 18% with Carter gaining a strong 17% and
Hubert Humphrey taking 15% of the vote tally.
MAJOR conducted the three-hour vote (off the air)
during his regular talk program on WDAE Tuesday night.
Some five-hundred voters responded. Here is the
breakdown:
REAGAN:
21% (108 votes)
WALLACE:
18% (89 votes)
CARTER:
17% (84 votes)
HUMPHREY:
15% (74 votes)
FORD:
13% (67 votes)
KENNEDY:
5% (23 votes)
FORD i LIBRARY 938839
BAHY:
3% (13 votes)
JACKSON:
3% (13 votes)
ORIGINAL TO:
Gwen Anderson
COPY TO:
Ron Nessen
FYI
"The Sunshine Group"
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FORD s LIBRARY GERALD
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THE SUN, Sunday, November 16, 1975
K3
Reagan's rule in California-after the boom
GERALD FORD LIBRARY
liO no gaidT vasi edT
Bv BRI CE WINTERS
from Californians who survived the
$13 million from its budget request, and
er 1973, income tax exemptions would
eight years intact, and then elected a
no
then wound up giving it only 83 per cent
have been extended to single persons
new governor whose fiscal policies, at
of the trimmed figure. Later budgets
with adjusted gross incomes of $4,000 or
least, are as penny-pinching as Mr.
were more generous.
less and couples with adjusted gross in-
Reagan's.
Other public schools fared better. Mr.
comes of $8,000 or less.
5
Los Angeles.
From out of the West comes Ronald
In general, the Reagan years repre-
Reagan's last budget contained $2.7 mil
Mr Reagan campaigned vigorously
Wilson Reagan. a movie star who gov-
sent the first attempt by any large gov-
lion in state funds for grades kindergar-
aion the proposition's behalf, calling it "an
erned the most populous of the United
ernment in this country (federal, state
ten through high school, a 118 per cent
economic bill of rights for every work
States, and now wants to lead the nation
or local) to do less for people, not more.
increase in eight years. During that peri-
ingman and woman in California.
He
in a return to political fundamentalism.
They also were quixotic years as Reagan
od, enrollment rose only 10.6 per cent
said it would save them $118 billion.
As California's governor for eight
the inexperienced idealist learned to
State. funds to junior colleges in-
"What the hell is wrong with putting
of
from S7A À million to $314 R mil.
(state)
in
some
enrt
of
com.
REAGAN SCHEDULE
Thursday Nov. 20
9:30 a.m. Press Club, Washington D.C.
1:30 p.m. Miami Fla.c.m.
6:30 p.m. Manchester, N.H. Town Meeting
Friday Nov. 21
Bes.
9 a.m.
Manchester press conference (tentative)
Hols
Charlotte rally at airport
Chicago press conference at airport
Los Angeles airport rally
FORD LIBRARY & GERALD
MEMORANDUM
November 24, 1975
TO:
Bo Callaway
Stu Spencer
FROM: Bob Visser
Rev
RE:
Reagan Candidacy
Now that Ronald Reagan has formally announced his
candidacy for the Presidency, we will check with the FEC
and obtain a copy of any and all reports he files with.
the Commission. I anticipate that he will not list any
expenditures prior to the date- of his announcement and
would appreciate any information we may have collected
with regard to expenditures in connection with his radio-
TV program and newspaper column. As soon as the report
has been filed and this information is available, we will
prepare a memorandum outlining possible legal approaches
to this situation.
FORD & LIBRARY GERALD