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03/05/1981 (case file 043344)
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Records of the Office of the President (Reagan Administration)
Presidential Briefing Papers
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JG Page 101 3 ID # 043344 WHITE HOUSE OFFICE OF RECORDS MANAGEMENT WORKSHEET TR X-MEDIA H-INTERNAL Name of Document: BRIEFING PAPERS FOR PRESIDENTS Subject Codes: SCHEDULED 1) Breakfast Subject: Meeting with members of the House APPOINTMENTS FOR MAR0581 PR 007 - 01 FG 032 - of Representatives Conservative PL 005 - 02 Democratic Forum to discuss the BE 004 - 04 President's economic recovery LE - program 50 001 - - 2) Meeting with anne Gorsuch, FG 122 - Environmental Pro tection administration administrator designate of the - - - 3) Meeting with national Cyptic brosis HE 001 - 05 poster children: PR 005 - A) Jennifer Lynn Haninger WE 004 - 3) attilio D'agesting - c) Douglas Lean MOHLER WE 001 - - - - ROUTE TO: ACTION DISPOSITION Office/Agency (Staff Name) Action Tracking Date Type of Completion Date Code YY/MM/DD Response Code YY/MM/DD RMHENL RSZ C Referral Note: Page 273 ID # 043344 WHITE HOUSE OFFICE OF RECORDS MANAGEMENT WORKSHEET X-MEDIA H-INTERNAL Name of Document: BRIEFING PAPERS FOR PRESIDENT'S Subject Codes: SCHEDULED APPOINTMENTS FOR PR 007 - 01 4) Subject: Moeting to discuss the MAR0581 Red River - Waterway Project with mambers of ST 018 - the Louisiana delegation : NR 007 - 01 Senators Russell Rong and FG 031 - Rennett johnston and - Representatives Jerry H uckaby - and Buddy Roemer - WE - 5) Filmand video taping sessions for : PR 011 - A.) academy awards telecant PR 016-01 E) american Red Cross Centennial AR - CX Easter seal Telethon PR 006 - D newsweek Conference corporato/government WE 004 - MC - PR 014 - 12 HE - HE EE - HE 001 - 05 ROUTE TO: ACTION DISPOSITION Office/Agency (Staff Name) Action Tracking Date Type of Completion Date Code YY/MM/DD Response Code YY/MM/DD RMHENL RSZ c Referral Note: Page 3013 ID # 043344 WHITE HOUSE OFFICE OF RECORDS MANAGEMENT WORKSHEET X-MEDIA H-INTERNAL Name of Document: BRIEFING PAPERS FOR PRESIDENTS Subject Codes: SCHEDULED APPOINTMENTS FOR MAR0581 PR 007 - 01 6) Subject: Meeting with the Cakingt to discuss: FG 010 - 01 A) Barawell and Three Mile Island AT - B) Senior Executive Service personnel UT - c) Segislative policy Policy Review PE 008 - LE - D) speeches and Press contacts PR 016 - E) Interdepartmental FG - Working Groups - - - - - - - - - - - ROUTE TO: ACTION DISPOSITION Office/Agency (Staff Name) Action Tracking Date Type of Completion Date Code YY/MM/DD Response Code YY/MM/DD RMHENL RSZ c Referral Note: UNPUBLISHED March 4, 1981 THE WHITE HOUSE 4:00 pm WASHINGTON THE PRESIDENT'S SCHEDULE Thursday, March 5, 1981 8:30 am Breakfast with Congressional Conservative State Dining (60 min) Democratic Forum Room (Max Friedersdorf) Press Photo Opportunity (TAB A) 9:45 am Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 10:15 am National Security Briefing Oval Office (15 min) (Richard V. Allen) ASSISTANT ADMIRAL JAMES NANCE BUSH mease, BAKER, DEAUER, MURPHY 10:30 am Meeting with James Baker, Ed Meese, Michael Oval Office (15 min) Deaver, Max Friedersdorf and James Brady 11:15 am Meeting with Ann McGill Gorsuch Oval Office (15 min) (Craig Fuller) BUSH, MEASE, SEC. WATT (TAB B) White House Photographer Only - No Press Coverage 11:30 am The President and Mrs. Reagan Greet Oval Office (10 min) Cystic Fibrosis Poster Children (Max Friedersdorf) (TAB C) Press Photo Opportunity Noon Lunch with the Vice President Vice President (60 min) Office 1:00 pm Meeting with Stu Spencer Oval Office (15 min) (MKD LAST 10 min) 1:30 pm Congressional Time - Senators Russell Long Oval Office (30 min) and Bennett Johnston; Congressmen Jerry Huckaby and Buddy Roemer of Louisiana (Max Friedershorf) No Press Coverage (TAB D) MAP Room 2:00 pm Taping Session (Red Cross, Easter Seal, Oval Office (30 min) Newsweek and Academy Awards) (Mark Goode) 2:35 (TAB E - - Remarks Attached) DRAW PRESS NAMES Ron FRIAM PRESS CONFERENCE ROOSEVELT Room 3:00 pm Cabinet Meeting Cabinet Room (90 min) (Craig Fuller) 4:25 PHOTO w/ GEN'L IN OVAL ORFICE min) (TAB F) 30 4:45 pm Meeting with Pendleton James Oval Office (30 min) messe, BAKER sure 5:30 pm Staff Time Oval Office (30 min) (Baker, Mease Deaver) 5:00 6:00 pm Return to Residence UNPUBLISHED March 4, 1981 THE WHITE HOUSE 4:00 pm WASHINGTON THE PRESIDENT'S SCHEDULE Thursday, March 5, 1981 8:30 am Breakfast with Congressional Conservative State Dining (60 min) Democratic Forum Room (Max Friedersdorf) Press Photo Opportunity (TAB A) 9:45 am Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 10:15 am National Security Briefing Oval Office (15 min) (Richard V. Allen) 10:30 am Meeting with James Baker, Ed Meese, Michael Oval Office (15 min) Deaver, Max Friedersdorf and James Brady 11:15 am Meeting with Ann McGill Gorsuch Oval Office (15 min) (Craig Fuller) (TAB B) White House Photographer Only - No Press Coverage 11:30 am The President and Mrs. Reagan Greet Oval Office (10 min) Cystic Fibrosis Poster Children (Max Friedersdorf) (TAB C) Press Photo Opportunity Noon Lunch with the Vice President Vice President (60 min) Office 1:00 pm Meeting with Stu Spencer Oval Office (15 min) 1:30 pm Congressional Time - Senators Russell Long Oval Office (30 min) and Bennett Johnston; Congressmen Jerry Huckaby and Buddy Roemer of Louisiana (Max Friedersdorf) (TAB D) No Press Coverage Mar Room 2:00 pm Taping Session (Red Cross, Easter Seal, COval Office (30 min) Newsweek and Academy Awards) (Mark Goode) (TAB E - Remarks Attached) 3:00 pm Cabinet Meeting Cabinet Room (90 min) (Craig Fuller) (TAB F) 4:45 pm Meeting with Pendleton James Oval Office (30 min) 5:30- David Treen 5:30 pm Staff Time Oval Office (30 min) (Baker, Meese, Deaver) 6:00 pm Return to Residence THE WHITE HOUSE WASHINGTON March 4, 1981 MEETING WITH MEMBERS OF THE CONSERVATIVE DEMOCRATIC FORUM (HOUSE OF REPRESENTATIVES) DATE: Thursday, March 5, 1981 LOCATION: State Dining Room TIME: 8:30 A.M. (sixty minutes) FROM: Max L. Friedersdorf m.6. I. PURPOSE To become better acquainted with the forty-four member Conservative Democratic Forum--all Democratic Congressmen, many of whom have indicated their individual support of most of the Administration's economic policy initiatives, especially the spending cuts. II. BACKGROUND On January 30, 1981, the President met in the Oval Office with Representative Charles W. Stenholm (Democrat-Texas) , Chairman of the Conservative Democratic Forum. During this meeting, and in subsequent conversations with the staff, Mr. Stenholm encouraged a Presidential meeting with the Forum's membership as a means of helping the Forum align itself with the Administration on several key votes. The Forum is receiving pressure from the House Democratic Leadership to "come into the fold"; but the group's members are philosophically more in tune with the Administration's economic, social and defense positions. Several Forum members, including Stenholm, have indicated their strong support for $10 billion in spending cuts above the President's proposal. Forum members are expected to present the President with their recommendations for $8 billion in such cuts during the scheduled breakfast meeting on March 5, 1981. Dave Stockman can reply. Congressmen Montgomery, Barnard (pronounced "Ba-nard") and Bevill spoke on the Floor of the House in support of your spending proposals on the day after your speech to the Congress. Congressman Bo Ginn indicated in a House Appro- priations Committee hearing last week his complete endorse- ment of your economic program, regardless of how the voters in his Georgia District may view this come the 1982 election. III. PARTICIPANTS See attachment Page Two March 4, 1981 IV. PRESS PLAN Photo opportunity immediately prior to meeting V. SEQUENCE OF EVENTS A. Remarks by the President (5 minutes) B. Remarks by Congressman Stenholm (5 minutes) C. Remarks by the Vice President (2 minutes) D. Response by the President Attachments: Participants Talking Points ATTACHMENT 1 PARTICIPANTS PARTICIPANTS IN BREAKFAST MEETING WITH MEMBERS OF THE CONSERVATIVE DEMOCRATIC FORUM (HOUSE OF REPRESENTATIVES) The President The Vice President Deputy Secretary of the Treasury R. T. McNamar OMB Director David Stockman CEA Chairman Murray Weidenbaum Staff James Baker, III Sherrie Cooksey Edwin Meese, III J. L. Cullen Max Friedersdorf Bill Gribbin Michael Deaven MKD Jim Brady Martin Anderson Dick Allen Kenneth Duberstein Powell Moore John Dressendorfer Nancy Risque David Wright M. B. Oglesby Conservative Democratic Forum Members Attending Meeting Charles W. Stenholm (Texas) -- First elected 1978 -- Chairman, Conservative Democratic Forum -- Serves on the Agriculture Committee and the Small Business Committee Ike Andrews (North Carolina) -- First elected 1972 -- Serves on the Education and Labor Committee, the Select Committee on Aging and the Congressional Arts Caucus -- Chairman, Education and Labor Subcommittee on Human Resources Doug Barnard, Jr. (Georgia) -- First elected 1976 -- Serves on the Banking, Finance and Urban Affairs Committee and the Government Operations Committee -- former banker Tom Bevill (Alabama) -- First elected 1966 -- Serves on the Appropriations Committee and the Democratic Steering and Policy Committee Whip at large Chairman, Appropriations Subcommittee on Energy and Water Development Attachment 1 (continued) - 2 - PARTICIPANTS David R. Bowen (Mississippi) -- First elected 1972 -- Serves on the Agriculture Committee, the Foreign Affairs Committee and the Merchant Marine and Fisheries Committee -- Chairman, Agriculture Subcommittee on Cotton, Rice and Sugar John B. Breaux (Louisiana) -- First elected 1972 -- Serves on Merchant Marine and Fisheries Committee, the Public Works and Transportation Committee and the Democratic Steering and Policy Committee -- Chairman, Merchant Marine and Fisheries Subcommittee on Fisheries, Wildlife Conservation and the Environment Beverly B. Byron (Maryland) -- First elected 1978 -- Serves on the Armed Services Committee, the Interior and Insular Affairs Committee and the Select Committee on Aging Bill Chappell, Jr. (Florida) -- First elected 1968 -- Serves on the Appropriations Committee Dan Daniel (Virginia) -- First elected 1968 -- Serves on the Armed Services Committee -- Chairman, Armed Services Subcommittee on Readiness Glenn English (Oklahoma) -- First elected 1974 -- Serves on the Agriculture Committee and the Government Operations Committee -- Chairman, Government Operations Subcommittee on Government Information and Individual Rights Billy Lee Evans (Georgia) -- First elected 1976 -- Serves on the Judiciary Committee, the Public Works and Transportation Committee and the Small Business Committee Attachment 1 (continued) -3- PARTICIPANTS Ronnie G. Flippo (Alabama) -- First elected 1976 -- Serves on the Public Works and Transportation Committee and the Science and Technology Committee -- Chairman, Science and Technology Subcommittee on Space Science and Applications -- Former accountant and former iron worker L. H. Fountain (North Carolina) -- First elected 1952 -- Serves on the Foreign Affairs Committee and the Government Operations Committee -- Chairman, Government Operations Subcommittee on Intergovernmental Relations and Human Resources Bo Ginn (Georgia) -- First elected 1972 -- Serves on the Appropriations Committee and the Democratic Steering and Policy Committee -- Chairman, Appropriations Subcommittee on Military Construction Phil Gramm (Texas) -- First elected 1978 -- Serves on the Budget Committee, the Energy and Commerce Committee and the Veterans' Affairs Committee -- Former economics professor Ralph M. Hall (Texas) -- First elected 1980 -- Serves on the Energy and Commerce Committee and the Science and Technology Committee Sam B. Hall, Jr. -- First elected 1976 -- Serves on the Judiciary Committee and the Veterans' Affairs Committee -- Chairman, Veterans' Affairs Subcommittee on Compensation, Pension, Insurance and Memorial Affairs Kent Hance (Texas) -- First elected 1978 -- Serves on the Ways and Means Committee Attachment 1 (continued) -4- PARTICIPANTS W. G. (Bill) Hefner (North Carolina) -- First elected 1974 : Serves on the Appropriations Committee, the Budget Committee and the Democratic Steering and Policy Committee Jack Hightower (Texas) -- First elected 1974 -- Serves on the Appropriations Committee Ken Holland (South Carolina) -- First elected 1974 -- Serves on the Ways and Means Committee and the Special Committee on Standards of Official Conduct : Chairman, Congressional Textile Caucus Carroll Hubbard, Jr. (Kentucky) -- First elected 1974 : Serves on the Banking, Finance and Urban Affairs Committee and the Merchant Marine and Fisheries Committee I Chairman, Merchant Marine and Fisheries Subcommittee on the Pan American Canal/Outer Continental Shelf Jerry Huckaby (Louisiana) First elected 1976 : Serves on the Agriculture Committee and the Interior and Insular Affairs Committee Earl Hutto (Florida) : First elected 1978 : Serves on the Armed Services Committee and the Merchant Marine and Fisheries Committee Andy Ireland (Florida) -- First elected 1976 -- Serves on the Foreign Affairs Committee and the Small Business Committee -- Chairman, Small Business Subcommittee on Export Opportunities and Special Small Business Problems Ed Jenkins (Georgia) -- First elected 1976 -- Serves on the Ways and Means Committee Attachment 1 (continued) -5- PARTICIPANTS Ed Jones (Tennessee) -- First elected 1969 -- Serves on the Agriculture Committee and the House Administration Committee -- Chairman, Agriculture Subcommittee on Conservation Credit and Rural Development -- Chairman, House Administration Subcommittee on Services Marvin Leath (Texas) -- First elected 1978 -- Serves on the Armed Services Committee and the Veterans' Affairs Committee -- Chairman, Veterans' Affairs Subcommittee on Housing and Memorial Affairs -- Former officer and director of five Texas banks Dave McCurdy (Oklahoma) -- First elected 1980 -- Serves on the Armed Services Committee and the Science and Technology Committee Dan Mica (Florida) -- First elected 1978 -- Serves on the Foreign Affairs Committee, the Veterans' Affairs Committee, and the Select Committee on Aging G. V. (Sonny) Montgomery (Mississippi) -- First elected 1966 -- Serves on the Armed Services Committee and the Veterans' Affairs Committee -- Chairman, Veterans' Affairs Committee -- Chairman, Veterans' Affairs Subcommittee on Oversight and Investigation Stephen L. Neal (North Carolina) -- First elected 1974 -- Serves on the Banking, Finance and Urban Affairs Committee and the Government Operations Committee -- Chairman, Banking, Finance and Urban Affairs Subcommittee on International Trade, Investment and Monetary Policy -- former mortgage banker Bill Nelson (Florida) -- First elected 1978 -- Serves on the Budget Committee and the Science and Technology Committee -- Chairman, Science and Technology Subcommittee on Space Science and Applications Attachment 1 (continued) -6- PARTICIPANTS Bill Nichols (Alabama) -- First elected 1966 -- Serves on the Armed Services Committee -- Chairman, Armed Services Subcommittee on Military Personnel and Compensation Charles Rose (North Carolina) -- First elected 1972 -- Serves on the House Agriculture Committee, the House Administration Committee, the Permanent Select Committee on Intelligence, and The Speaker's Advisory Committee on Broadcasting -- Chairman, Agriculture Subcommittee on Tobacco and Peanuts -- Chairman, Permanent Select Committee on Intelligence Subcommittee on Evaluation -- Chairman, House Recording Studio -- Chairman, House Administration Committee, Policy Group on Information and Computers -- Founder, Congressional Clearing House on the Future Buddy Roemer (Louisiana) -- First elected 1980 -- Serves on the Public Works and Transportation Committee and Small Business Committee -- former bank director Richard C. Shelby (Alabama) -- First elected 1978 -- Serves on the Energy and Commerce Committee and Veterans' Affairs Committee Samuel S. Stratton (New York) -- First elected 1958 -- Serves on the Armed Services Committee -- Chairman, Armed Services Subcommittee on Procurement and Military Nuclear Systems Bob Stump (Arizona) -- First elected 1976 --- Serves on the Armed Services Committee, the Veterans' Affairs Committee and the Permanent Select Committee on Intelligence W. J. (Billy) Tauzin (Louisiana) -- First elected 1980 -- Serves on the Energy and Commerce Committee and Merchant Marine and Fisheries Committee Attachment 1 (continued) -7- PARTICIPANTS Wes Watkins (Oklahoma) -- First elected 1976 -- Serves on the Appropriations Committee -- Chairman, Congressional Rural Caucus Richard C. White (Texas) -- First elected 1964 -- Serves on the Armed Services Committee and the Science and Technology Committee -- Chairman, Armed Services Subcommittee on Investigations Charles Whitley (North Carolina) -- First elected 1976 -- Serves on the Agriculture Committee Conservative Democratic Forum Member Not Attending Meeting Walter Jones (North Carolina) -- First elected 1966 -- Serves on the Agriculture Committee and the Merchant Marine and Fisheries Committee -- Chairman, Merchant Marine and Fisheries Committee -- Unable to attend due to hospital confinement ATTACHMENT 2 TALKING POINTS SUGGESTED TALKING POINTS FOR MEETING WITH MEMBERS OF THE CONSERVATIVE DEMOCRATIC FORUM -- Mention your experience in both political parties. -- Stress the need for a bipartisan coalition in the Congress to work on your highest priority, your economic package. -- State that you have a great deal in common philos- ophically with the Conservative Democratic Forum; and indicate that the Forum members will play a very important role in Committees and on the House Floor in the passage of your economic package (especially your proposed spending cuts). -- Point out that while you recognize that most of the Forum's members support your spending cuts, you also hope you can count on their support for your supply-side tax cut. -- Note that time is of the essence; and urge Forum members to push for House action on your proposals as quickly as possible. THE WHITE HOUSE WASHINGTON March 4, 1981 MEETING WITH: ANN McGILL GORSUCH, EPA ADMINISTRATOR-DESIGNATE DATE: March 5, 1981 LOCATION: Oval Office TIME: 11:15 a.m. (15-20 minutes) OE I. PURPOSE Ann M. Gorsuch, Administrator-designate of the Environmental Protection Agency, wishes to discuss the Administration's plans regarding the Agency. II. BACKGROUND Ann Gorsuch will focus her comments on EPA personnel policy, on changes in EPA legislation, and on regulatory reform. With respect to personnel, she plans to draw back on the delegation of hiring authority to regional EPA directors, at least until her new (Reagan) people are in place. With respect to changes in EPA legislation, she would like to push for amendments within the basic structure of the Clean Air and Water Acts as written, as opposed to a repeal and rewrite approach. With respect to regulatory reform, she recommends a comprehensive approach -- rather than singling out specific regulations and raising flags. Talking points for the President are attached. III. PARTICIPANTS The Vice President Mease Secretary James Watt Ann McGill Gorsuch IV. PRESS PLAN There will be White House photographers only. No press coverage. V. SEQUENCE OF EVENTS The President will welcome Ann Gorsuch and lead discussion on the Environmental Protection Agency according to the attached talking points. Ann Gorsuch will raise the discussion points outlined in the "Background" section (II) above. Talking Points For March 4th Meeting With Ann Gorsuch This Administration will of course act to protect the people's health. -- Such action must occur in the context of tested scientific findings, not mere speculation. -- Although our aim will be to protect the environment, we must always look at the costs and benefits, so that we can protect the environment in the most effective way. The prompt handling by EPA of applications for permits is important. Projects should not languish for want of attention by EPA personnel. Applicants should receive a yes or no as quickly as possible. -- The Administration should take a strong role in the upcoming debate over changes in the Clean Air and Water Acts. Even so, the Administrator should act within her discretionary authority where advisable rather than being paralyzed by the fact that changes are pending. There must be a recognition that economic recovery and energy development must enter the calculus of environmental improvement. I want you to know that your efforts will have my full support. THE WHITE HOUSE WASHINGTON March 4, 1981 MEETING WITH NATIONAL CYSTIC FIBROSIS POSTER CHILDREN DATE: March 5, 1981 LOCATION: The Oval Office TIME: 11: 30 A.M. (10 Minutes) FROM: Max L. Friedersdorf m.f I. PURPOSE To meet and have photographs taken with three National Cystic Fibrosis poster children and their families. II. BACKGROUND Each year the National Cystic Fibrosis (CF) Poster Child visits Washington and has in the past had photograph sessions with the President, Cabinet members, and Members of Congress. In keeping with CF's theme of growth, and symbolic of the progress of medical research in this area, there are three poster representatives this year. They are ages 3½, 9, and 18. Only a few years ago a child with CF living to age 18 would have been inconceivable. Cystic fibrosis is a congenital disease of mucous glands throughout the body that usually develops during childhood and causes pancreatic insufficiency and pulmonary disorders. Congressman Doug Barnard (D-Georgia) requested the photograph session in behalf of one of his constituents who has been in charge of the Washington trip for several years. The Congressman is a member of the Conservative Democratic Forum and will have attended that group's breakfast with you earlier in the day. Republican Senator Mack Mattingly and Democrat Senator Sam Nunn both from Georgia, will also attend the photograph session. In addition, the poster children's congressmen will be in attendance. They are: 1. For Jennifer Lynn Haninger, age 3½, from Irvine, California--Congressman Bob Badham. 2. For Attilio (Otto) D'Agostino, age 9, from Agoura, California--Congressman Barry Goldwater, Jr. 3. For Douglas Leon Mohler, age 18, from Oregon, Ohio--Republican freshman Congressman Ed Weber. Page Two March 4, 1981 III. PARTICIPANTS See attachment IV. PRESS PLAN White House photographer, as well as the National Cystic Fibrosis Foundation photographer. V. SEQUENCE OF EVENTS No specific agenda Attachments: Participants Talking Points ATTACHMENT 1 PARTICIPANTS The First Lady The Vice President Senator Mack Mattingly (R-Georgia) Senator Sam Nunn (D-Georgia) Congressman Doug Barnard (D-Georgia) and members of the National Cystic Fibrosis Foundation Ann Brewer, CF Area Director, Congressman Barnard's constituent who is in charge of the Washington trip. Doris Tulcin, CF National President Robert Beall, CF National Director Adam Kelley, CF Photographer Jennifer Lynn Haninger, 3½1/2 years old, from Irvine, California Mr. and Mrs. Edward R. Haninger, Parents Congressman Bob Badham (R-California) Attilio (Otto) D'Agostino, 9 years old, from Agoura, California Mr. and Mrs. Saverio D'Agostino, Parents Congressman Barry Goldwater, Jr. (R-California) Douglas Leon Mohler, 18 years old, from Oregon, Ohio Mr. and Mrs. Richard E. Mohler, parents Congressman Ed Weber (R-Ohio) Max L. Friedersdorf Powell Moore Nancy Risque CONCRESSMAN GOLDWATER " ATTACHMENT 2 TALKING POINTS SUGGESTED TALKING POINTS FOR MEETING WITH NATIONAL CYSTIC FIBROSIS POSTER CHILDREN -- Relay to these three young people and their families how much it means to you and the First Lady to meet with them. -- Express your gratitude, which is shared by Americans everywhere, for the tireless work of the Foundation in supporting research efforts to combat this disease. -- Thank Congressman Barnard (pronounced "Ba-nard") for arranging for you, the children and their families, and the members of the Foundation to meet this year. -- Invite each child and his/her family to pose for separate photographs with you, the First Lady, the Vice President, and their congressman. THE WHITE HOUSE WASHINGTON March 4, 1981 MEETING WITH SENATOR RUSSELL B. LONG (D-LA.), SENATOR BENNETT JOHNSTON, JR. (D-LA.), CONGRESSMAN JERRY HUCKABY (D-LA.) and CONGRESSMAN BUDDY ROEMER (D-LA.) DATE: THURSDAY, MARCH 5, 1981 LOCATION: THE OVAL OFFICE TIME: 1:30 P.M. (30 MINUTES) FROM: MAX L. FRIEDERSDORF m.b I. PURPOSE To satisfy a Congressional delegation request to appeal the halting of construction on the Red River Waterway Project in Louisiana. II. BACKGROUND OMB recommended, because of its great cost and low economic return, the suspension of construction on the Red River Waterway between the Mississippi River and Shreveport, Louisiana. OMB views this project as showing the greatest potential investment loss of any Corps project now under construction. Both Senators Long and Johnston have called personally to strongly object. Senator Long, the ranking Democrat on Senate Finance and crucial to the tax cut legis- lation, recommends the project be trimmed back rather than killed. Senator Johnston calls the project, "the Number One project in Louisiana. We expect to be with the President 99 percent of the time, but can't permit the loss of this project." Both are powerful members of the Senate and can be expected to fight this decision with all possible vigor. Former Congressman Joe Waggoner (D-La.), a strong supporter of the President, sent word that Senator Long is very serious about his protest on this project. Mr. Waggoner further indicated that the city of Shreveport will be 100 percent dependent on the River for its drinking water in the future. Page Two March 4, 1981 III. PARTICIPANTS The President Dave Stockman Senator Russell B. Long Senator Bennett Johnston, Jr. Congressman Jerry Huckaby Congressman Buddy Roemer Governor David Treen Staff Jim Baker Max Friedersdorf IV. PRESS PLAN None, White House photographer only. V. SEQUENCE OF EVENTS The delegation will enter through the Northwest Gate; proceed to the West Lobby, and meet the President in the Oval Office. Attachment: Talking Points ATTACHMENT 1 TALKING POINTS SUGGESTED TALKING POINTS FOR MEETING WITH LOUISIANA CONGRESSIONAL DELEGATION REGARDING RED RIVER WATERWAY -- Reiterate your policy to reduce spending across the board in order to reduce inflation, balance the budget and get the economy back in good shape. -- Acknowledge that this policy cannot be implemented without the burden falling on all regions of the country. Indicate other projects are being halted, and Red River Waterway appears to be one of those with the greatest cost and lowest economic return.* (See attachment for project's negative aspects.) Indicate your strong willingness to listen to the delegation's presentation, but stress your determination and commitment to sending a budget to Congress on March 10 for fiscal 1982 that reduces spending. Express willingness, as work on the '82 budget gets underway, to take a second look at this project and work with the delega- tion, as well as Senator Baker, Senator Hatfield, Senator Domenici and others. Do not leave any impression that you have changed your mind about eliminating this project. Red River Waterway-Mississippi River to Shreveport, Louisiana Project will shorten a natural meandering river by 48 miles, creating a 236-mile navigation channel with 5 locks and 5 dams thereby allowing reliable navigation from Shreveport to the Gulf. Red River Waterway is being proposed for termination of funding (reduction of $120 M in FY 1982) It is not the only project proposed for termination of funding (Yatesville, Ky. and Big South Fork, Tn. are others) Unlike the Carter "hit list" which was targeted at water resources, this proposal is being made in the broad context of the Economic Recovery Program. The criteria used to make this decision were: Low percentage of sunk costs; poor economics, and environmental damage. -- Red River is only 17% complete -- Project costs have been increasing rapidly -- 400% in last ten years. Current cost estimate is $1.6 billion. -- Project benefits are questionable -- 20% for "bank stabilization," 11% for area redevelopment, and 15% for other non-navigation benefits. -- Project is not a sound economic investment regardless of the type of benefits. The ratio of remaining benefits to remaining costs at the current Federal discount rate of 7 3/8% is less than unity 0.64. -- Environmental damages and losses include 48 miles of natural streams, loss of 40,000 acres of agricultural land and 13,000 acres of wetland. If some water projects are not terminated, the agreement that we are being evenhanded with budget reductions cannot be made. It should be pointed out that the Tennessee-Tombigbee project which is as costly and controversial is being protected because, unlike Red River, it is very far along its completion schedule (53%) and it has a much higher ratio of remaining benefits to costs. This project authorized in 1968 and first funded in 1973 has a history of impoundment and controversy. It was on the initial Carter hit list but soon cleared for continued funding by the Administration. March 2, 1981 March 3, 1981 Rurin 1. Budget Planning Numbers ($ in millions) 1982 1983 1984 1985 1986 January Budget 120 168 215 252 185 Budget level as a result of Feb. 18 stretchout 120 168 160 177 209 2. Current Total Estimated Federal Cost, dated Jan. 15, 1981, is $1,619,000,000. 3. Project History -- Authorized by River and Harbor Act of 1968 and Water Resources Development Act of 1976. Funds to initiate construction first appropriated in FY 1973 as a congressional addition to budget. Impounded for a short while and then released with other new starts. Since that time $326 M has been allocated to the project. This is almost the original estimated total cost, which was $393 M. -- Project is located in central and Northwest Louisiana and would provide a 236 mile navigation route from the Mississippi River at its juncture with the Old and Red River to Shreveport. Project has long been controversial, and has proceeded slowly in part because local entities have not met construction schedules in supplying rights-of-way. -- Project was on the initial Carter "hit list" but was ultimately cleared for continued funding by the previous Administration. 4. Project Completeness -- Project is 17% physically complete. Project is divided into 5 "pools" of development. One of these pools is 44% complete, The other four have had no more than 15% of work accomplished A large portion (22%) of sunk costs is for engineering and administration - $70 M. Remaining sunk costs have been allocated in such a way as to preclude the use, in an as-is condition, of most existing facilities. However, the project could be completed to the city of Alexandria, La. for approximately $100 M. This would complete "pool 1" and about 50 miles of canal. 5. Benefit/Cost Ratio -- Project was authorized in 1968 using a discount rate of 3 1/4%. Using this rate, project has B/C ratio of 1.5. -- Using the rate currently prescribed by the Principles and Standards for water resource development, 7 3/8% the ratio of remaining costs to remaining benefits is 0.64/1. -2- 6. Benefits -- Transportation benefits are based on annual movement of 8.3 million tons of commodities, principally alcohol, clay, coal, iron, and fertilizers. -- These benefits do not take into account damage which would be done to railroad shipping and do not take into account the decrease in barge traffic which will result from imposition of increased fuel tax. (In time available, we were unable to develop good information on this, but it does not appear that there are significant alternative transportation damages.) -- Bank stabilization, redevelopment, and recreation account for nearly 40% of project benefits. Bank stabilization has little economic value aside from protecting a navigation waterway, once completed; redevelopment counts for part of the project costs as benefits; and recreation is a notoriously soft benefit category, both economically and analytically. -- These are low priority localized outputs which have little or no "national" benefit. 7. Louisiana Fiscal Condition -- State of Louisiana had a general fund budget surplus for the fiscal year ending July 1, 1980, of $544 M, and a total surplus of $572 M. -- In 1979 the State collected $198 M in royalties on oil and gas development. -- Without this project, Corps will send $218 M on construction and operation and maintenance in Louisiana in 1982. 8. Map (See attached) HWT BRIDGE,US HWYS 79 6 00 LEGEND ARKANSAS I-50(2) BRIDGE, CENTRAL RR PROJECT HWT LOCATION RM BRIDGE, STATE IMPROVEMENTS AUTHORIZED Monros MWT HWY 3032 MWY STATE HWY $11 Vicksburg givemile LOCK AND DAM El 80 REALIGNED CHANNEL Notchez SHREVEPORT BIENVILLE EXISTING LEVEE TEXAS Alexandr Bossier City U A N A CROSS Baton LAKE 120 MILEAGE ABOVE MISSISSIPPI RIVER Rouge d Loke REALIGNED CHANNEL Chorles 79 NEW ORLEANS to BIENVILLER MO MILEAGE ABOVE MISSISSIPPI RIVER Pierre ALONG EXISTING CHANNELS OLD RIVER LOCK LAKE VICINITY MAP B SCALE MILES JD CHANNEL CLOSURE ADDRESS LOCK a DAM NO.5 RED Coushatta EDCK 8 DAM NO. Cample PARISH Cigrence Pierre LOCK 8 DAM NO.1 River Acms MISSISSIPPI Notchitoches RIVER # AVOVELLES 0 BTO LOCK 8 DAM-NO OLD RIVER CONTROL STRUCTURE Colfox LEGEND Rigolatte OFT. PROJ. DEPTH Provide NEW VICKBURG ORLEANS PARIZ N.R.E. NORM POOL ELEV PARISH OF 250 ALEXANDRIA to 0 LOUISIANA Morksville DISTRICT RIVER E RIVER O DISTRICT 0 LOCK add Simmesport 200 POINTE COUPEE INPEL PARISH 0 169 150 E 145 ELEVITION FEET H.OVERTON JOHN H. OVERTON N.P. EL. 115 100 LOCK & DAM YAFALAYA 07 TWELVEMLE RIVER ELEVATION 58 LOWER MISSISSIPPI VALLEY DIVISION WORK BAYOU SCALES CYPRESS a RIVER AND HARBOR IMPROVEMENTS BAYOU RED MILES RED RIVER WATERWAY 0 300 160 100 MISSISSIPPI RIVER TO SHREVEPORT, LA. KILOMETERS ABOVE DISSISSIPPI SCALES SHOWN (967) 0 PPOFILE OFFICE OF THE DISTRICT ENGINEER NEW ORLEANS, LA. REVISED 30 SEPTEMBER 1979 MEMORANDUM THE WHITE HOUSE WASHINGTON February 27, 1981 MEETING WITH: Film and Video Taping Session DATE: March 5, 1981 LOCATION: Oval Office TIME: FROM: Mark 2:00 PM Goode M.D. I. PURPOSE To video tape an opening for the Academy Awards telecast, 2 spots for the Red Cross and a message to be used during the Easter Seals telethon and to film a message to a Newsweek gathering of chief executive officers. II. BACKGROUND The Red Cross spots are for general television use during this year's campaign. The Easter Seals message will be used during a national telethon, to be aired March 28 and 29. The Academy Awards piece will be used at the opening of their telecast on March 30th. The Newsweek message is being produced in lieu of personal attendance at their conference in Reston, Virgina. Several administration spokesmen will be appearing there and Jim Baker's remarks are scheduled to follow the film. III. PARTICIPANTS Only the President will appear on camera. IV. PRESS PLAN Not established at this time. Possible photo opportunity at conclusion. V. SEQUENCE OF EVENTS The President should arrive in the Oval Office at 2 or 3 minutes before 2:00 PM. Several areas in the office will be used. The spots vary in length, and the overall dura- tion will be approximately 40 minutes. AMERICAN RED CROSS CENTENNIAL - :30 TAPING 1 1981 MARKS THE 100TH BIRTHDAY OF THE AMERICAN RED CROSS -- AN IMPORTANT MILESTONE IN OUR COUNTRY'S HISTORY. THIS GREAT HUMANITARIAN ORGANIZATION, STARTED BY CLARA BARTON IN 1881, CONTINUES TO BE THE CONSCIENCE OF OUR NATION TODAY, RALLYING US TO WORKS OF MERCY AND LOVE. RED CROSS VOLUNTEERS ARE ON THE JOB IN TOWNS ACROSS THIS LAND AND STAND READY FOR A NEW CENTURY OF SERVICE. I AM PROUD TO BE HONORARY CHAIRMAN OF THE AMERICAN RED CROSS AND I URGE YOU TO BECOME PART OF THE RED CROSS FAMILY. AMERICAN RED CROSS CENTENNIAL - :60 TAPING 1 1981 MARKS THE 100TH BIRTHDAY OF THE AMERICAN RED CROSS -- AN IMPORTANT MILESTONE IN OUR COUNTRY'S HISTORY. THIS GREAT HUMANITARIAN ORGANIZATION, STARTED BY CLARA BARTON IN 1881, CONTINUES TO BE THE CONSCIENCE OF OUR NATION, RALLYING US TO WORKS OF MERCY AND LOVE. THIS IS THE WORK OF GIVING EMERGENCY CARE TO TENS OF THOUSANDS OF OUR COUNTRYMEN AFFECTED BY NATURAL DISASTERS EVERY YEAR -- THE WORK OF COLLECTING AND DISTRIBUTING LIFE SAVING BLOOD NEEDED EVERY DAY -- THE WORK OF TEACHING THE SKILLS OF FIRST AID, WATER SAFETY, AND HOME NURSING -- THE WORK OF HELPING OUR YOUTH - THE WORK OF ASSISTING OUR VETERANS AND SERVICEMEN AND WOMEN. 2 THIS IS THE JOB OF THE RED CROSS. RED CROSS VOLUNTEERS ARE THERE IN TOWNS ACROSS THIS LAND, STANDING READY FOR A NEW CENTURY. I AM PROUD TO BE HONORARY CHAIRMAN OF THE AMERICAN RED CROSS AND I URGE YOU TO BECOME PART OF THE RED CROSS FAMILY. OPENING STATEMENT FOR EASTER SEAL TELETHON 1 GOOD EVENING. YOU AND I ARE ABOUT TO WATCH, BETWEEN NOW AND TOMORROW EVENING, THE 10TH ANNUAL NATIONAL EASTER SEAL TELETHON ON BEHALF OF DISABLED CHILDREN AND ADULTS THROUGHOUT THE NATION. SOME YEARS AGO, AS GOVERNOR OF CALIFORNIA, I WAS PRIVILEGED TO MEET THE SOCIETY'S YOUNG POSTER BOY, PETER STINSON. HE STOLE ALL MY JELLY BEANS. PETER, WHEREVER YOU ARE TONIGHT, YOU ARE FORGIVEN. THIS ONCE. THE EASTER SEAL SOCIETY IS A GOOD EXAMPLE OF HOW A PRIVATE, VOLUNTARY ORGANIZATION CAN LEAD THE WAY IN PROVIDING SERVICES AND PROGRAMS NEEDED BY A COMMUNITY, AND PROVIDE THEM MORE QUICKLY AND 2 DIRECTLY THAN GOVERNMENT. NINETY-FIVE PERCENT OF THE CONTRIBUTION TO EASTER SEALS WILL STAY IN YOUR COMMUNITY TO FUND TAPING FOR NEWSWEEK CORPORATE/GOVERNMENT CONFERENCE 1 GOOD AFTERNOON. I'M DELIGHTED THAT NEWSWEEK AND PETER DEROW HAVE BROUGHT TOGETHER THE LEADERS OF AMERICA'S BUSINESS AND OUR NEW ADMINISTRATION FOR A FRESH EXCHANGE OF VIEWS. I KNOW THAT MANY OF MY SENIOR STAFF ARE WITH YOU DURING THIS CONFERENCE AND I ALSO KNOW THAT YOU'LL HAVE SOME ENLIGHTENING AND PRODUCTIVE DISCUSSIONS TOGETHER. THESE ARE DISCUSSIONS I HOPE WILL CONTINUE LONG AFTER THIS CONFERENCE IS OVER. THOSE OF US IN GOVERNMENT -- AND I'VE MADE A POINT OF THIS SINCE I WAS GOVERNOR OF CALIFORNIA -- NEED YOUR ADVICE, YOUR PERSPECTIVE, AND YOUR WISDOM. 2 AND I WOULD BE VERY REMISS IF I DID NOT SAY A WORD OF GRATITUDE TO YOU FOR ALL THE SUPPORT YOU HAVE GIVEN OUR PROGRAM FOR ECONOMIC RECOVERY. WE'RE WELL AWARE OF THE INDIVIDUAL EFFORTS MANY OF YOU HAVE MADE, AND WE'RE GRATEFUL FOR THEM. AS YOU KNOW, SHORTLY BEFORE WE ANNOUNCED OUR ECONOMIC PROGRAM, WE MET WITH MANY DIFFERENT GROUPS, INCLUDING MAYORS AND GOVERNORS. DURING THOSE DISCUSSIONS, ONE GOVERNOR TOLD US THAT IF WE CAN SHAVE A FEW POINTS OFF THE RATE OF INFLATION -- WE CAN DO MORE FOR THE BUDGETS OF STATE AND LOCAL GOVERNMENT 3 THAN ANY PACKAGE OF FEDERAL PROGRAMS EVER COULD. ONE OF THE MAYORS SAID SOMETHING SIMILAR -- CUT THE RATE OF INFLATION AND YOU'LL DO MORE FOR THE ELDERLY AND THE POOR THAN ALL THE FEDERAL PROGRAMS COMBINED. I DON'T HAVE TO TELL YOU WHAT REDUCING THE LEVEL OF FEDERAL SPENDING, MAKING SHARP CUTS IN TAXES, REDUCING INTEREST RATES, STABILIZING THE MONEY SUPPLY, AND RIDDING OURSELVES OF IRRATIONAL AND SENSELESS REGULATIONS WILL DO FOR AMERICAN BUSINESS. I BELIEVE THIS WILL PUT US BACK ON THE ROAD TO ECONOMIC PROSPERITY. 4 I KNOW THAT SOME PEOPLE REALLY QUESTION WHETHER THIS CAN BE ACHIEVED. I THINK THEY'VE FORGOTTEN THAT FOR MANY YEARS NOW SAVERS, INVESTORS, AND BUSINESSMEN HAVE LACKED CONFIDENCE THAT GOVERNMENT COULD STEP BACK AND SET LOOSE AGAIN THE AMAZING INGENUITY AND THE VITAL ENERGIES OF THE AMERICAN PEOPLE. I THINK THAT CONFIDENCE IS RETURNING AND I DON'T THINK WE CAN UNDERESTIMATE ITS IMPACT ON OUR ECONOMY. ONE OTHER ENCOURAGING DEVELOPMENT HAS TAKEN PLACE AND UNDOUBTEDLY YOU'LL BE DISCUSSING THAT DEVELOPMENT DURING THIS CONFERENCE. 5 FOR THE FIRST TIME IN MANY DECADES, ECONOMISTS HAVE STOPPED RECOMMENDING THAT GOVERNMENT OVER-SPEND AND OVER- TAX. THEY ARE REALIZING WHAT THE AMERICAN PEOPLE FULLY UNDERSTAND TODAY: THAT GOVERNMENT SPENDING ONLY CONSUMES WEALTH AND BY DOING SO DISCOURAGES THE HARD WORK, PERSONAL INITIATIVES, AND RISK-TAKING THAT "SUPPLIES" WEALTH TO OUR ECONOMY. NO GOVERNMENT CAN SPEND ITSELF RICH. NO NATION CAN CONSUME WITHOUT CREATING. WE ALSO KNOW THAT NO LARGE COLLECTION OF STATISTICS OR THE AGGREGATE NUMBERS ECONOMISTS ARE SO FOND OF CAN TRULY REPRESENT THE COMPLEXITY AND INTERPLAY OF MILLIONS OF ECONOMIC 6 TRANSACTIONS THAT TAKE PLACE EVERY DAY BETWEEN INDIVIDUALS AND BETWEEN BUSINESSES. YET IT IS IN THESE TRANSACTIONS -- THE WORKER WHO EARNS A HIGHER WAGE FOR STRIVING HARDER -- THE BUSINESSMAN WHO DEVELOPS A BETTER PRODUCT OR LESS EXPENSIVE WAY TO DELIVER A SERVICE -- THESE ACTIVITIES "SUPPLY" THE WEALTH IN OUR ECONOMY. THIS VIEW OF OUR ECONOMY -- THIS SO-CALLED "SUPPLY SIDE ECONOMICS" -- MERELY STATES THE OBVIOUS: WEALTH IS CREATED FOR ALL OF US ONLY WHEN THOSE WHO WORK HARDER OR TAKE MORE RISKS IN THE MARKETPLACE RECEIVE GREATER REWARDS FOR DOING SO. 7 ONE EMINENT WRITER ON ECONOMICS HAS RECENTLY NOTED THAT A BUSINESS, LIKE AN ARMY OR EVEN A SPORTS TEAM, CAN HAVE ROUGHLY THE SAME RESOURCES AS A COMPETITOR AND YET CONSTANTLY OUT-PERFORM THAT COMPETITOR. THE WRITER ATTRIBUTES THIS HIGHER PERFORMANCE TO AN INDEFINABLE FACTOR -- A SPIRIT THAT MOTIVATES AND ACHIEVES. WELL, OUR ECONOMY HAS A SIMILAR FACTOR -- AN X FACTOR THAT ECONOMISTS HAVE IGNORED AND GOVERNMENT HAS STIFLED -- THAT X FACTOR IS THE SPIRIT OF CREATIVITY AND PERSONAL INITIATIVE AMONG WORKERS AND BUSINESSMEN THAT CREATES OUR NATIONAL WEALTH. 8 WE WANT TO RENEW THAT SPIRIT BY REWARDING HARD WORK, RISK-TAKING, GOOD MANAGEMENT, AND SOUND INVESTMENT. TO DO THIS, THOSE OF US IN THE NEW ADMINISTRATION HAVE HAD TO ENGAGE IN SOME PLAIN TALK. THIS ONLY MEANS THAT WE HAVE TO TAKE SOME POLITICAL RISKS -- JUST AS YOU, EVERY DAY, TAKE BUSINESS RISKS. WE HAVE TO WORK WITH HOPE AND THRIVE ON OUR OWN FAITH IN THE FUTURE -- BUT IT'S JUST THAT KIND OF FAITH IN THE FUTURE THAT IS NOT ONLY THE FOUNDATION OF OUR ECONOMIC SYSTEM BUT OF OUR SOCIETY AND OUR CIVILIZATION. 9 WE WANT TO MAKE CAPITAL FORMATION EASIER FOR BUSINESS AND ADD TO OUR NATION'S MATERIAL WEALTH. THESE ARE IMPORTANT OBJECTIVES. BUT WE ALSO SEEK TO EXTEND THE ECONOMIC RIGHTS OF EVERY AMERICAN BECAUSE THESE RIGHTS COMPRISE ONE OF OUR MOST IMPORTANT FREEDOMS AND THEY ARE INDIVISIBLE FROM POLITICAL AND SOCIAL FREEDOM. ALL OF THIS OF COURSE IS JUST TO REPEAT A WISDOM WELL KNOWN TO THOSE WHO FOUNDED THIS COUNTRY -- A WISDOM THAT SHOULD BE BORNE IN MIND DURING CONFERENCES LIKE THIS ONE AS WE TRY TO KEEP IT IN MIND HERE IN WASHINGTON. AS THOMAS JEFFERSON SAID, "A WISE AND FRUGAL GOVERNMENT, WHICH SHALL 10 RESTRAIN MEN FROM INJURING ONE ANOTHER, WHICH SHALL LEAVE THEM OTHERWISE FREE TO REGULATE THEIR OWN PURSUITS OF INDUSTRY AND IMPROVEMENT AND SHALL NOT TAKE FROM THE MOUTH OF LABOR THE BREAD IT HAS EARNED. THIS IS THE SUM OF GOOD GOVERNMENT " I MAKE YOU ONE PROMISE FOR MYSELF AND FOR THOSE MEMBERS OF MY ADMINISTRATION WHO ARE WITH YOU. WE WILL MAKE NO DECISIONS NOR TAKE ANY ACTIONS BASED ON WHAT WE MIGHT THINK IS THE POLITICALLY RIGHT THING TO DO. OUR COURSE WILL BE DETERMINED BY WHAT WE BELIEVE IS THE MORALLY RIGHT THING TO DO. THE WHITE HOUSE WASHINGTON MEETING WITH THE CABINET DATE: March 5, 1981 LOCATION: Cabinet Room TIME: 3:00 p.m. (90 minutes) FROM: Craig L. Fuller as I. PURPOSE This is a scheduled meeting of the full Cabinet. No items have been set which require decisions. All items on the agenda are for discussion only. II. BACKGROUND The following items will be discussed: 1. Barnwell and the Three Mile Island decision 2. Personnel: the Senior Executive Service (SES) and reduced personnel levels 3. Legislative Policy Review 4. Speeches and press contacts 5. Interdepartmental Working Groups III. PARTICIPANTS (list attached to the agenda) IV. PRESS PLAN (Photo opportunity) V. SEQUENCE OF EVENTS The President will call the meeting to order. The Barnwell and Three Mile Island decisions will be announced by the President (talking points will be presented and reviewed prior to the meeting by Mr. Meese.) The President should call on Lyn Nofziger to introduce a discussion on personnel matters. THE WHITE HOUSE WASHINGTON March 4, 1981 MEMORANDUM FOR THE SECRETARY OF STATE THE SECRETARY OF THE TREASURY THE SECRETARY OF DEFENSE THE ATTORNEY GENERAL THE SECRETARY OF THE INTERIOR THE SECRETARY OF AGRICULTURE THE SECRETARY OF COMMERCE THE SECRETARY OF LABOR THE SECRETARY OF HEALTH AND HUMAN SERVICES THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT THE SECRETARY OF TRANSPORTATION THE SECRETARY OF ENERGY THE SECRETARY OF EDUCATION FROM: FRED FIELDING 771 SUBJECT: Senior Executive Service The Senior Executive Service (SES) is divided into career and non-career positions and this distinction affects selection, qualifications, reassignment and removal of individuals in the SES. Following is a very brief explanation of Agency Heads' authority in dealing with the SES: SES Positions There are a set number of SES positions in each agency. Allo- cation is made by the Office of Personnel Management from a pool established by statute. Positions are designated either career-reserved or general. Career-reserved positions may be filled only with career people on a merit basis under the agency's career recruitment program. General positions may be filled by either career or non-career people, but the number of non-career appointments is also fixed by OPM. Non-career SES o Positions may be filled by the agency on a non- competitive basis, Qualifications are determined by the agency, May be reassigned to other non-career positions in agency head's discretion, 2 May be removed or asked to resign because of "lack of confidence" but not solely on the basis of political affiliation unless affilia- tion is essential to job performance, o No rights to appeal removal. Career SES o Career-reserved positions must be filled on a competitive basis under agency selection procedures, Qualifications of the appointee are subject to review by the Office of Personnel Management, o May be reassigned on a truly voluntary basis, May not be involuntarily reassigned or removed except for cause for 120 days after appointment and commissioning of the agency head or immediate non-career supervisor, May be involuntarily reassigned after 120 days if given 15 days notice. Reassignment may be made to any career or general SES position in the agency or to another agency so long as the individual is qualified and the other agency agrees, May not be rated on performance during the first 120 days after appointment of agency head or supervisor, O May be removed from SES for unsatisfactory executive performance only after notice and opportunity for informal hearing before the Merit Systems Protection Board and may retain placement rights in a non-SES position with the agency, May be removed from government service for cause with proper notice, hearing and appeal procedures, Regulations on procedures and placement rights in instances in which functions are abolished or personnel complements are reduced are being pre- pared by OPM and will be furnished later. Procedural Protections OPM has issued regulations concerning the selection, appointment, reassignment and removal of persons in the SES. In addition, individual agencies have issued supplementary regulations. 3 Failure to follow the regulations may result in reversals of agency action by the Merit Systems Protection Board or the courts. Historically more personnel actions are reversed for procedural irregularity than on substantive grounds. Moreover, some courts have held officials personally liable for improper personnel actions. Individual Status The rights of an individual in SES are determined not only by the classification of the position but also by the status of the individual. Thus, a career SES official may accept a Presidential appointment yet retain rights to return to the SES. The rights of an individual to placement in a non-SES position in the agency may depend on his status prior to appointment to the SES. Before taking any action on an SES member the status of the individual should be checked. Individualized Judgments The creation of SES was intended to give an agency head greater flexibility in managing his agency with people in whom he had confidence. SES personnel are rated on executive performance which includes ability to carry out the policies of the Adminis- tration and the agency head. Unsatisfactory performance is a basis for removal from SES. The system was also intended to establish a corps of career managers who would bring continuity and government expertise to federal service. The 120 day re- striction on removal or reassignment was designed to assure that agency heads would review the actual performance of individual SES managers rather than make blanket judgments based on service in a prior Administration. In the first test of SES following a change of Administration, care must be taken to insure that the spirit of the process is observed and that procedural requirements are followed.