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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Blackwell, Morton: Files
Folder Title: American Legislative Exchange Council
(2 of 2)
Box: 1
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
THE WHITE HOUSE
WASHINGTON
March 11, 1982
Mr. Thomas Mack
Editor, FIRST READING
American Legislative Exchange Council
418 C St., N.E.
Washington, D.C.
20002
Dear Mr. Mack:
I am pleased to respond to your February 11 request for
information on the savings due to the President's program
for devolving responsibility to State and local governments.
As you know, the President has outlined a long-range plan
for sorting out responsibilities among levels of government.
This New Federalism initiative, announced in the State of the
Union message, is being preceded by proposals to consolidate
catagorical programs into block grants to the States.
Last summer, the President succeeded in gaining the enactment
of nine block grants in the Omnibus Reconciliation Act. In
addition, he is proposing several new or expanded block grants
in the FY 1983 budget.
At this time, we can provide you with specific estimates of
Federal administrative cost savings resulting from the nine
enacted block grants, the proposed Education and Training
and Child Welfare Block Grants, and the proposals to expand
and simplify three existing HHS block grants covering Primary
Care; Services for Women, Infants and Children; and Low-Income
Home Energy and Emergency Assistance. These estimates, which
are attached, total to $90 million in savings during 1982-83.
Additional savings will result in 1983, 1984, and the outyears,
as enacted block grants are fully implemented and proposed
consolidations take effect.
Specific estimates for other proposed new block grants will
be available at a later date, as legislative proposals to
achieve the consolidations are completed. Similarly, estimates
of Federal personnel reductions due to consolidations will be
available later.
As block grants already are yielding tangible savings at the
Federal level, so will the President's New Federalism initiative
result in further substantial decreases in the Federal establishment.
A significant portion of the planned FY 1985-87 reduction of
75,000 Federal civilian employees is attributable to the New
Federalísm initiative.
Page 2
The person at the White House in charge of developing
the Administration's "Workfare" program is Robert Carleson
of the Office of Policy Development. His telephone number
is 456-6630.
I hope this information will be helpful to you and appreciate
your interest in the President's proposals.
Sincerely,
Morton e. Blashwell
Morton C. Blackwell
Special Assistant to the President
Attachment
ALEC
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E.
Washington, D.C. 20002
(202) 547-4646
February 11, 1982
Mr. Morton C. Blackwell
Special Assistant to the President
The White House
1600 Pennsylvania Ave. N.W.
Washington, D.C. 20500
Dear Morton:
Thank you for organizing the very informative briefing on the
budget, Wednesday, February 10, 1982. Mr. Moran's presentation was thorough
and effective.
There are two items of information I would like to obtain from you.
First, does OMB have a figure on what the transfer of programs to block
grant will save in terms of federal administration costs and personnel?
Second, Who is the person in charge of developing the Administration's
mandatory "Workfare" program, and what is the contact number?
Your assistance is greatly appreciated. We look forward to working
with you in the future as the President's New Federalism iss set in motion.
Thomas Thomas Sincerely, E. Mack Mach
Editor, FIRST READING
called Tom on#2
Linda me Mahon
HHS/245-2010
sent to Don Moron 2/17 for draft
response
A non-profit, non-partisan, tax-exempt organization serving State Legislators and Members of Congress
THE WHITE HOUSE
WASHINGTON
February 17, 1982
TO:
DON MORAN
FROM: MORTON C. BLACKWELL
Will you please draft a response for
me to the highlighted question on the
attached letter?
I appreciate your help with this matter.
Thank you.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
STATE
4
March 82
DATE:
TO:
Morton C. Blackwell
FROM:
Don Moran
As requested.
Bob
please clear this
diaft with Morton
OMB FORM 38
REV AUG 73
DRAFT
March 3, 1982
Mr. Thomas E. Mack
Editor, FIRST READING
American Legislative Exchange Council
418 C. Street, N.E.
Washington, D.C. 20002
Dear Mr. Mack:
I am pleased to respond to your February 11 request for information on the
savings due to the President's program for devolving responsibility to
State and local governments.
As you know, the President has outlined a long-range plan for sorting out
responsibilities among levels of government. This New Federalism
initiative, announced in the State of the Union message, is being preceded
by proposals to consolidate categorical programs into block grants to the
States. P Last summer, the President succeeded in gaining the enactment of
nine block grants in the Omnibus Reconciliation Act. In addition, he is
proposing several new or expanded block grants in the FY 1983 budget. of At
this time, we can provide you with specific estimates of Federal
administrative cost savings resulting from the nine enacted block grants,
the proposed Education and Training and Child Welfare Block Grants, and the
proposals to expand and simplify three existing HHS block grants covering
Primary Care; Services for Women, Infants and Children; and Low-Income Home
Energy and Emergency Assistance. These estimates, which are attached,
total to $90 million in savings during 1982-83. P Additional savings will
result in 1983, 1984, and the outyears, as enacted block grants are fully
implemented and proposed consolidations take effect. P Specific estimates
for other proposed new block grants will be available at a later date, as
legislative proposals to achieve the consolidations are completed.
Similarly, estimates of Federal personnel reductions due to consolidations
will be available later.
As block grants already are yielding tangible savings at the Federal level,
so will the President's New Federalism initiative result in further
substantial decreases in the Federal establishment. A significant portion
of the planned FY 1985-87 reduction of 75,000 Federal civilian employees is
attributable to the New Federalism initiative.
Angwer Question #2 have 11
Bob carleson
I hope this information will be helpful to you and appreciate your interest
in the President's proposals.
Sincerely,
Attachment
cc:
Official File - SSD/HRVL
DO Records
White House Liaison, 62 OEOB
Mr. Moran
Ms. Selfridge
D. Kleinberg/S. Elliff
B. Martin
F. Lewis
Ms. Yarbrough
SSD/HRVL:KYarbrough:et:3Mar82
THE WHITE HOUSE
WASHINGTON
February 17, 1982
TO:
DON MORAN
FROM: MORTON C. BLACKWELL
Will you please draft a response for
me to the highlighted question on the
attached letter?
I appreciate your help with this matter.
Thank you.
ALEC
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E.
Washington, D.C. 20002
(202) 547-4646
February 11, 1982
Mr. Morton C. Blackwell
Special Assistant to the President
The White House
1600 Pennsylvania Ave. N.W.
Washington, D.C. 20500
Dear Morton:
Thank you for organizing the very informative briefing on the
budget, Wednesday, February 10, 1982. Mr. Moran's presentation was thorough
and effective.
There are two items of information I would like to obtain from you.
First, does OMB have a figure on what the transfer of programs to block
Ark Bobun Corlson Wasner
grant will save in terms of federal administration costs and personnel?
Second, Who is the person in charge of developing the Administration's
find or out
mandatory "Workfare" program, and what is the contact number?
+ add + to
letter
Your assistance is greatly appreciated. We look forward to working
with you in the future as the President's New Federalism ise set in motion.
Thomas Sincerely, E. Mack Mach
Editor, FIRST READING
A non-profit non-partisan tax-exemnt organization State / egistators and Members of
) Ale
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E., Suite 200
Washington, D.C. 20002
(202) 547-4646
March 2, 1982
OUTLINE OF ISSUES IN FEDERALISM
I. STATES HAVE THE RESOURCES TO FINANCE NEW FEDERALISM INITIATIVES.
A. Administration Plan calls for an even swap, meaning an even exchange of
funding responsibilities.
B. Federalization of Medicaid frees portion of state tax base to finance other
programs.
C. States can use federal trust fund to recuperate lost revenue.
D. States can raise windfall profits and excise taxes as federal equivalent is phased-out
E. States have over a dozen ways to raise revenue without raising taxes:
1. revise cash management laws.
2. tighten government procurement codes.
3. sell surplus and excess public land.
4. improve debt collection.
5. strengthen anti-trust laws.
6. create state lotteries.
7. accelerate tax collections.
8. collect tax arrears.
9. contract-out for government commercial/industrial activity.
10. eliminate government competition with the private sector.
11. require limited user fees for certain state-financed health services.
12. establish state-local enterprise zones.
13. negotiate foreign trade contracts.
14. convert current education systems into voucher program.
15. revise tax schedules for unemployment insurance trust funds.
16. sell unneeded government property, such as equipment used by state
departments of transportation.
F. Transfer of revenue sharing responsibilities will permit greater coordination
at the local level.
ALEC's 1982 World's Fair Annual Meeting Choo-Choo Hilton, Chattanooga, Tennessee
June 16-20, 1982
Outline of Issues in Federalism
Page 2
G. Additional revenues can be obtained from the fiscal dividend of an expanding economy:
1. it is the most powerful anti-poverty weapon.
2. substantial economic growth can be expected in the near future.
3. continuation of the Reagan-Kemp-Roth tax rate reduction and tax indexing
will increase government revenues.
II. STATE PUBLIC ASSISTANCE PROGRAMS INDICATE A COMMITMENT TO SOLVENCY, FISCAL
RESPONSIBILITY, AND SOCIAL JUSTICE.
A. Every state's Medicaid program has statutorily prescribed categories of "medically
needy" and "categorically needy."
B. State unemployment compensation systems - financed and operated by the states -
provide wide safety nets that can complement the proposed transfer of income
maintenance programs.
C. Disparities in state welfare programs do not reflect insensitivity of states:
1. state income maintenance programs have removed people from poverty.
2. state income maintenance programs have restored work incentives.
3. disparities in welfare benefits reflect cost of living differentials.
4. some categories of state welfare programs rise faster than wages.
D. Interstate migration by poor is unrelated to welfare benefit levels:
1. migration is caused by other factors.
2. migration patterns show an exodus from high-crime, inner-city areas,
which is where the aggregate welfare benefits are greatest.
E. New state training programs can complement poverty programs:
1. investment in public sector manpower programs is increasing.
2. vocational training programs are increasing.
3. states finance over two-thirds of the vocational education program costs.
4. state manpower programs are more cost-effective than the equivalent federal
program.
F. State enterprise zone programs will help the poor:
1. six states are now implementing such a plan, and 18 states are creating
similiar programs; over 140 state bills are introduced or still pending.
2. states with enterprise zone legislation have registered renewed business
activity in designated recovery zones.
Outline of Issues in Federalism
Page 3
III. THE FEDERAL GOVERNMENT SHOULD NO LONGER CONTROL OR SUPERVISE INCOME
MAINTENANCE PROGRAMS.
A. The federal government lacks effective means for checking abuses.
1. incentive and opportunity for fraud are greater at the federal than state-
local levels.
2. federal controls on fraud are inadequate.
B. Administrative costs at the federal level are excessive and wasteful.
C. Federal expansion of the programs like food stamps has coincided with a seven-fold
increase in expneditures.
D. The programs, as structured at the federal level, cost more than the size of the
poverty gap.
E. Accounting techniques at the federal level increase the cost of the programs.
F. Federal administrators are not as sensitive to the individual state-local needs
as are state-local officials.
G. Federal administrators are innaccessible and unaccountable to constituents.
H. Federal cost-of-living multipliers inflate the programs and guarantee continued
escalation of costs.
I. Duplication of programs and records is widespread.
IV. FEDERALIZATION OF MEDICAID MAY PROVE TO BE ILL-ADVISED, ILL-TIMED,
AND INFLATIONARY.
A. Federal take-over will not solve the systematic problems of Medicaid.
B. Federal government lacks effective means of checking abuses of program.
C. Increasing cost of program may inspire movement to enact price controls.
D. Federalization may add impetus to framework for national health insurance.
E. State administrators are more aware of state-local needs, priorities, costs, health
problems, and alternatives.
F. After federal take-over, Administration must consider new options for containing
costs and making program efficient:
1. privatizing Medicaid, as per the pilot Health Care Finance Administration
(HCFA) project in Boston.
2. administering Medicaid under a voucher plan.
3. allowing home care tax credits as an alternative to institutionalization
under Medicaid.
ALEC
418 C Street, N.E.
FIRST READING
Washington, D.C. 20002
(202) 547-4646
The Newsletter of the American Legislative Exchange Council
May 1982, Vol. 8 No. 5
Landmark Legislation Eliminates
port of a surprisingly large number of
judges, lawyers and psychiatrists,
'Insanity Defense" in Idaho
changes the criminal code to provide
that:
insanity is not defense to a criminal
In a memorandum to the House of
charge.
Representatives, Attorney General
determination of sanity will be
David Leroy stated: "The revisions I
conducted only after sentencing on the
have proposed to the 'insanity defense'
grounds that the defendant actually
provide the unique opportunity for
committed the crime, and was cogni-
Idaho to lead the way to the solution of
zant of the crime involved at the time
how problems of mental illness should
of the act.
be treated in a criminal context. SB
the convicted person suffering from
1396 should reduce the tendency of de-
a mental condition shall be committed
fendents to assert a mental illness de-
to the Board of Corrections and given
fense when it is not appropriate."
the necessary treatment, but once treat-
The Idaho bill, which won the sup-
continued on next page
Congress Reviews
Idaho Attorney General David Leroy developed
legislation that revised the Idaho Criminal Code
ALEC Federalism
to set a landmark precedent.
Plan
ALEC National Chairman, Idaho
Representative T.W. Stivers, was in-
With Congress engaged in a momen-
strumental in the passage of major
tous struggle to reach agreement on the
legislation which revises the Idaho
FY 1983 budget, the President's State
Criminal Code to permit sentencing in
of the Union message has faded and
cases where the defendent pleads in-
the New Federalism has receded into
sanity. Stivers is Chairman of the
the background of discussion. Senator
Judiciary and Rules Committee of the
Charles E. Grassley (R-Iowa) has
Idaho House of Representatives and
recommended the federalism plan de-
Chairman of the Subcommittee on
veloped by the American Legislative
Judicial and Regulatory Reform of the
Exchange Council as the focal point
Presidential Advisory Commission on
for redirecting the debate on New Fed-
Federalism. Another ALEC member,
U.S. Senator Charles Grassley (R-Iowa) en-
eralism. Senator Grassley sent copies
dorsed the ALEC "White Paper on Federal-
Rep. Gary Montgomery, co-sponsored
of the "ALEC White Paper on Fed-
ism."
the measure with Larry Harris, Vice-
eralism" (see April's First Reading) to
Chairman of the Judiciary and Rules
his 535 colleagues in Congress with a
Committee.
cover letter which is excerpted here.
Congress considers the President's
Stivers credits Idaho Attorney Gen-
"The 'ALEC Alternative' is being
budget proposals. It makes for timely
eral David Leroy for the extensive re-
mentioned by many in the Administra-
reading, and I commend its 12 pages of
search and preparation of Senate Bill
tion as a solid, credible, and well-
recommendations to your attention.'
1396 which is expected to receive na-
documented alternative to some of the
The ALEC "White Paper on Fed-
tional attention because it is the only
New Federalism proposals being pro-
eralism" was developed in consulta-
bill of its kind that has passed a state
posed by governors and other state of-
tion with hundreds of state legislators.
legislature. If the bill holds up to
ficials. The report argues, rather per-
ALEC continues to represent the voice
judicial scrutiny under the Idaho Con-
suasively, that states have 'a largesse
of its legislative membership in this im-
stitution, it may lead to similar revis-
of untapped revenue' that allows them
portant plan offered by the President
ions in other states, and a re-examina-
to absorb about $53 billion worth of
to decentralize big government and
tion of the insanity plea, as it applies to
federal categorical aid programs. The
return responsibilities to their proper
the federal criminal code.
ALEC report is a great study aid as
place at the state level.
Cavemen Conservatives
Reacting to their spending cut pro-
had the opposite effect and gave us a
member, Senator Ellen Craswell, to
posals, Washington's Republican Gov-
good deal of public support. Ameri-
develop a budget alternative contain-
ernor John Spellman gave a new nick-
cans are generally all 'troglodytes"-
ing $700 million in spending reduc-
name to 24 conservative members of
none of them want tax increases."
tions and no new taxes. Bond con-
the House GOP Caucus, calling them
Despite the petition, Governor
tends his proposals would have solved
"troglodytes," which is the technical
Spellman acted against his campaign
the deficit problem. And although the
term for cavemen. The 24 Republicans,
platform and approved a budget which
Caucus' petition failed to achieve all
including ALEC Board Member and
imposes a $200 million tax revenue
its objectives, Bond says the "trogs"
House Speaker William Polk, had
hike and which represents a 17.2 per-
were able to keep spending $50 million
signed a petition calling for balancing
cent budget growth for the upcoming
below what it would have been and
the deficit-ridden budget without im-
biennium. Last November, Bond
prevented $100 million in additional
posing the new taxes requested by the
worked together with another ALEC
taxes. Hail, "trogs!"
Governor.
ALEC's Washington State Chair-
man, Representative Dick Bond, gen-
erally considered the most conserva-
tive member of the caucus, drafted and
circulated the petition. In response to
ROSF
the Governor's remarks, Bond said:
"The Governor used the name as a
means of disparagement, but it actually
ALEC Director One
of Most Admired
Conservatives
On April 26, Conservative Digest
magazine sponsored a Gala Dinner and
Awards Ceremony at the Corcoran
Gallery of Art in Washington for re-
cipients of America's Most Admired
Conservatives Award. ALEC Execu-
"GOVERNOR? YES, THE HOUSE REPUBLICANS ARE HERE DEMANDING MORE BUDGET CUTS!"
tive Director, Kathleen Teague was
honored as one out of ten Most Ad-
mired Conservative Women, along
with First Lady Nancy Reagan, Mrs.
Phyllis Schlafly and U.N. Ambassador
Jeane Kirkpatrick.
The Award recipients were selected
on the basis of a national reader poll
Idaho
torney General Leroy argues that,
"When a defendant knows that if con-
conducted by Conservative Digest.
continued from page 1
victed he will be sentenced to 14 years
Publisher Richard A. Viguerie re-
to life, but if acquitted on grounds of
marked, "The 30 men and women
ment is completed the defendant\must
mental illness he will receive only 20
who received the most votes give an
serve the remainder of the sentence
months, there is a great incentive to
indication of the tremendous vitality
subject to parole and the normal rules
plead not guilty by reason of mental
and diversity of the conservative move-
of commutation.
disease or defect. This bill should re-
ment in America today."
evidence concerning issues of in-
move that incentive." Currently over
Congressman Jack Kemp and Sena-
tent and culpable state of mind shall be
40 percent of "insanity defense" cases
tor Paul Laxalt received awards along
admissible at trial.
apply to misdemeanors and not capital
with political strategist Paul Weyrich
persons so retarded or insane that
crimes such as murder.
and columnist George F. Will. Presi-
they have no memory of the crime or
There are some constitutional ques-
dent Reagan, who received the first-
any comprehension of the charges will
tions surrounding SB 1396, but Deputy
place award, had this to say: "I feel
automatically be removed to an institu-
Attorney General Kenneth McClure
especially privileged and honored to be
tion and declared incompetent for
says, "Although it cannot be said with
selected in the 1982 Conservative Di-
trial.
absolute certainty that the Bill is con-
gest Reader's Poll I deeply appreci-
Under present law, defendants ac-
stitutional, it is our true and honest be-
ate this award and believe that by
quitted by reason of mental disease or
lief that it is." The law will go into ef-
working together we can further our
defect are sent to an Idaho State Hos-
fect July 1, 1982. Copies of the bill are
cause and truly bring a 'new beginning'
pital where they remain for an aver-
available upon request from the ALEC
to this land we love so much."
age of 20 months before release. At-
Research Department.
page 2
Helms Bill Would Transfer
Food Stamps to States
U.S. Senator Jesse Helms (R-N.C.), Chairman of the
Senate Agriculture Committee, recently introduced S. 2352
which would provide states with the option of establishing
their own nutritional assistance programs in place of the
federal food stamps program.
According to Senator Helms, the special feature of this
legislation is the maximum flexibility it would grant to
each state to establish nutritional assistance programs de-
signed to meet the specific needs of that state. Helms' Ad-
ministrative Assistant on the Agriculture Committee,
George Dunlop, said, "This is an important piece of leg-
islation for the states, and we would appreciate hearing
from ALEC legislators-they are a significant voice."
The proposed legislation would provide a block grant to
the states equal to the amount states received during the
12-month period prior to March 31, 1982, in order to ad-
ALEC member, Pennsylvania Senator Dick Snyder, was
minister their own nutritional assistance program. The
behind Senate passage of the Pennsylvania "Good Sa-
federal administrative costs would be eliminated. The fed-
maritan" bill.
eral government now pays all food stamp benefits, sets
the standards for eligibility and determines the amounts.
Hazardous Material Accidents:
The Helms program would allow states to use the nutri-
tional block grant money to provide checks to needy fam-
Protecting the Good Samaritan
ilies, distribute surplus commodities and vouchers to pur-
chase specific types of food, or exercise a number of other
Pennsylvania is about to join the ranks of seven other
options in lieu of the federal food stamps program.
states (Arkansas, North Carolina, Rhode Island, South
In addition to the block grant, Senator Helms' legisla-
Dakota, Tennessee, Texas, Virginia) which have passed
tion would require states to reimburse the federal govern-
"Good Samaritan" laws designed to provide protection to
ment for mistakes in overissuance of benefits. The bill
persons who offer assistance at the scene of a hazardous
would also require each state to implement a workfare
materials accident. ALEC members Senator Dick Snyder
program for able-bodied stamp recipients.
and Senator Robert Kusse registered strong support for
State takeover of food stamps was originally part of the
H.B. 50 which recently passed the Pennsylvania Senate by
President's New Federalism plan proposed last January.
a vote of 49-0, and is expected to meet little resistance in
ALEC endorsed the concept in its "White Paper on Fed-
the House.
eralism," and also recommended implementation of work-
In most states, current law imposes a disincentive for ex-
fare programs for food stamp recipients. See the "Work
perts to provide emergency assistance in the clean-up of
Opportunity Act," page 59, in ALEC's 1978 Source Book
hazardous materials accidents. Most chemical and petrol-
of American State Legislation, and the May State Factor.
eum industries have special teams of qualified experts to
respond to emergencies which present grave public danger
in case of fire, explosion, contamination, etc., but these
experts are unwilling to take the risk of liability which cur-
rent law imposes.
The purpose of "Good Samaritan" legislation is to en-
Conference on Privatization
courage knowledgeable individuals and organizations to
of Public Lands
voluntarily lend assistance in the event of an accidental or
threatened discharge of hazardous materials when local
public authorities are not equipped with the technical ex-
On June 21, 1982, The American Legislative Ex-
pertise to handle the situation. The legislation provides
change Council will cosponsor with the Heritage
immunity from liability which covers ordinary negligence
Foundation and Pacific Institute a conference on the
(e.g. acts taken or omitted that the ordinary reasonable
Privatization of Public Lands. The conference will
and prudent person would not do), but not gross negli-
address the philosophical and constitutional case for
gence (e.g. acts of reckless, wanton, or intentional mis-
privatizing public lands (see ALEC's January State
conduct). The "Good Samaritan" legislation would in no
Factor) and highlight the policy debate on federally
way change the liability of those persons originally re-
owned land sales. The conference will conclude with
sponsible for the accident.
a panel discussing recommendations for changes in
Many ALEC legislators feel "Good Samaritan" legisla-
public lands policy. Among other scholars and pol-
tion poses little controversy and carries the appeal of re-
icy analysts, Senator Steven Symms (R-Idaho) has
ducing public threat from hazardous spills and accidents
been invited to address the group as keynote speaker.
by bringing the most qualified experts in to assist in
Washington's Hyatt Regency Hotel will host the con-
emergencies. ALEC's committee on the Source Book of
ference. For additional information contact Lee Ann
American State Legislation is considering model "Good
Walton at the Heritage Foundation (202) 546-4400 or
Samaritan" legislation for its 1983-84 edition. State legis-
the ALEC Research Department.
lators are reminded to submit model legislation on other
issues for consideration.
page 3
Senator Russell: My 10-year voting record demonstrates a
consistent conservative position on fiscal as well as social
CAMPAIGN '82
and moral issues. I have been most active in making the
public aware of and defeating bad bills, such as ERA and
excise taxes on gasoline. I hold the national record for
filibustering in the state legislatures, and recently my four-
day filibuster killed voter registration by mail. My oppon-
UPCOMING PRIMARIES
ent is for public employee labor unions, ERA, collective
bargaining and tax increases. I adamantly oppose him on
May
8 Montana
7 Connecticut
each item, and in fact I was responsible last year for
1 Texas
8 New Jersey
7 Florida
getting the tax and spending limitation amendment
4 Indiana
8 North Dakota
11 Delaware
11 Nebraska
8 Ohio
11 Louisiana
passed in the South Carolina Legislature.
18 Oregon
8 South Carolina
14 Colorado
18 Pennsylvania
8 Virginia
14 Maryland
25 Arkansas
August
14 Massachusetts
ALEC Highlights
25 Idaho
14 Minnesota
3 Kansas
ALEC legislators across the country are seeking reelec-
25 Kentucky
14 Nevada
3 Michigan
14 New Hampshire
tion in 1982, and many are running for higher office either
June
3 Missouri
14 Rhode Island
in their state or for the U.S. Congress. Says ALEC Ex-
5 Tennessee
1 Mississippi
14 Utah
ecutive Director Kathleen Teague: "These legislators have
10 Georgia
1 New Mexico
14 Vermont
24 Alaska
been the leaders in promoting fiscal responsibility and
1 South Dakota
14 Washington
24 Oklahoma
14 Wisconsin
traditional social values at the state level; these are the
1 West Virginia
8 California
September
14 Wyoming
lawmakers who are setting the agenda for progress in the
8 Iowa
7 Alabama
18 Hawaii
'80s and they've got a lot of momentum because they
8 Maine
7 Arizona
stand for the values upon which our nation was founded.
ALEC members who are campaigning with favorable
prospects this year include: New Hampshire Senate Presi-
South Carolina Ready
dent Bob Monier for Governor; Iowa Lt. Governor Terry
Branstad for Governor; Connecticut Senator Russell Lee
for a Change of Venue
for Governor; Oklahoma State Auditor Tom Daxon for
Governor; Idaho Speaker Ralph Olmstead for Governor;
ALEC Board Member and South Carolina State Chair-
Florida Representative Jim Smith for Secretary of State;
man, Senator Norma Russell, is running a strong cam-
Illinois House Speaker George Ryan for Lt. Governor;
paign for the office of Lieutenant Governor of South
Colorado Representative Jim Reeves for U.S. Congress;
Carolina. Senator Russell is one of the most respected
Arizona Senator Pete Dunn for U.S. Senate; Arizona Rep-
conservative leaders of the South Carolina Legislature.
resentative Donna Carleson West for U.S. House; Ari-
First Reading interviewed Senator Russell on the day she
zona Senator Jim Mack for U.S. House; Texas Senator
announced her candidacy, and following are some ex-
Walter Mengden for U.S. Senate. ALEC legislators run-
cerpts from that discussion:
ning for office are requested to contact the ALEC Re-
search Department so that we may keep our files up-
First Reading: Senator
dated.
Russell, how do you dis-
tinguish yourself from your
Gingrich to Hold ALEC
main opponent, Mr. Tom
Turnipseed?
Campaign Workshop
Senator Russell: In this
U.S. Representative from Georgia, Newt Gingrich, will be
election, the public will
conducting a leadership seminar for ALEC members seeking
have a clear cut choice be-
higher office at the ALEC's 1982 World's Fair Annual Meet-
tween an ultra-liberal and a
ing in Chattanooga, Tennessee, June 16-20. During his four
solid conservative. My cam-
years in Congress Gingrich has emerged as a new spokesman for
paign platform is in direct
the conservative agenda. He has gained the respect of conserva-
contrast to the liberal phil-
tive leaders for his ability to communicate a positive perception
osophy of the current Lieu-
of the conservative program.
Rep. Gingrich has developed a future-oriented conception of
tenant Governor and my
the "Conservative Opportunity Society" (see February '82
opponent.
First Reading) which challenges the worn-out policies of the wel-
First Reading: What
ALEC South Carolina State Chair-
fare state advocates. He believes that conservatives should offer
would you consider your
man, Senator Norma Russell, is
voters a positive choice in the next election. If you are running for
major responsibilities as
seeking the Office of Lieutenant
office in 1982 please fill out the form below and return to the
Governor.
Lieutenant Governor?
ALEC Research Department.
Senator Russell: Under our state constitution, the Lieu-
tenant Governor's only duties are to preside as figurehead
Name:
over the Senate, and serve in the absence of the Governor.
I propose, however, to be a full-time Lieutenant Governor,
Current Office
and to use the office to keep the public factually informed.
Campaigning for
The position will be a statewide platform for espousing
Address
the conservative philosophy.
First Reading: How does your voting record in the past
Phone
reflect your present campaign platform?
page 4
Editor's Forum
Law of the Sea: An American Betrayal
The Washington Post headline
would have total competitive super-
at the direct expense of American tax-
reads: "U.N. Approves Sea Pact De-
iority over private companies. U.S.
payers who would be called upon to
spite U.S. Objections." "U.S. ob-
taxpayers would provide the major
subsidize its operations;
jections" are aimed at an unprecedent-
portion of the initial funding for
an economic structure built upon
ed attempt by advocates of the "new
"Enterprise."
production controls, commodity agree-
international economic order" to un-
A group of U.S. Senators have writ-
ments, mandatory transfer of tech-
dermine U.S. interests and concede
ten a letter to President Reagan urg-
nology and numerous other restric-
major control of two-thirds of the
ing him to abandon the Law of the
tions which are an anathema to our
earth's resources to the Third World.
Sea Treaty, and instead adopt the Re-
free enterprise system;
The Law of the Sea Treaty is based
ciprocating States Agreement devel-
a means by which terrorist groups,
upon principles which are anathema to
oped by the United States, the United
such as the PLO, could be awarded
the tradition of freedom and de-
Kingdom, West Germany, France and
financial benefits;
mocracy in the United States. It is an
Japan. The letter outlines the specific
*sovereignty-threatening precedents
attempt to redistribute global wealth
provisions of the Treaty which vio-
applicable to current and future in-
to a decided disadvantage of the U.S.
late free-market principles and under-
ternational negotiations;
under a Socialistic model of central
mine U.S. interests. These are quoted
a de facto system of immediate in-
economic planning. It is extremely im-
here:
terim application based upon the mere
portant that state legislators become
a system of world government in
adoption of resolutions by conference
aware of the dangerous provisions
which our political and economic in-
delegates, imposing burdens upon the
contained in the Law of the Sea Treaty
terests and those of our industrial al-
United States and all other partici-
and make their concerns known to
lies were not fairly represented;
pants, not only prior to the treaty's
President Reagan, Secretary of State
a cartel for strategic ocean min-
entry into force, but without the ad-
Alexander Haig and members of the
erals which would freeze out nearly
vice and consent of the Senate; and
U.S. Senate.
every American company which de-
a means by which amendments to
A recent study by the House Repub-
cided it wanted to develop the seabed;
the treaty would become binding on
lican Study Committee concluded the
a worldwide state-owned company
the United States without the advice
following about the Law of the Sea
which would monopolize ocean mining
and consent of the Senate.
Treaty: "The present draft treaty rep-
resents a vast concession to the Third
World/Soviet-bloc nations, a striking
Rumsfeld to Speak at ALEC Health
affront to the sovereignty of the
United States, and a blatant political
Conference
assault on our nation's security, eco-
Former Defense Secretary and
nomic, and political interests. It rep-
NATO Ambassador Donald H.
resents nothing short of a thinly dis-
Rumsfeld will be the keynote
guised attempt on the part of the Third
speaker at ALEC's "Health Care
World, joined by the Soviet bloc, to
and States" Conference in
co-op the United States, and have this
Washington, D.C., on May 14 and
country assume the majority share of
15 at the Capital Hilton Hotel. The
the financing for a new international
Conference will bring together
organization which is unalterably com-
Legislators, Administration Of-
mitted to advancing the cause of the
ficials, health specialists and
'New International Economic Order'
representatives from related health
at the expense of the United States."
industries to discuss constructive
U.S. companies have spent billions
measures for developing new health
of dollars in developing the world's
care policies for the 1980s.
most advanced technology for mining
Mr. Rumsfeld, a former Con-
The Honorable Donald H. Rumsfeld
vital minerals from the deep seabed,
gressman and currently President
President and Chief Executive Officer,
and under the Treaty, these companies
and Chief Executive Officer of G.D.
G.D. Searle and Co.
would be required to transfer that
Searle and Co., a major pharmaceutical corporation, will address the group
technology to underdeveloped na-
at a special dinner on Friday evening, May 14.
tions with no previous interests in deep
Other speakers for the ALEC health care conference include: Rick Neal,
seabed mining. Furthermore, the
Special Assistant to the President for Intergovernmental Affairs; Dr.
Treaty would establish an Interna-
Robert Helms, Deputy Assistant Secretary, U.S. Department of Health and
tional Seabed Authority, in which the
Human Services; Allan Bruckheim, Editor-in-Chief, Family Medical
United States would have only one
Times; Jack Meyer, Resident Fellow, American Enterprise Institute; Peter
vote and no veto, to control access to
Ferrara, Special Assistant at HUD and author of Social Security: The In-
seabed resources, regulate mining and
herent Contradiction; Dr. Carlton Turner, White House Advisor on Drug
prices, set limits on production and
Abuse; and Steve Caulfield, President, Government Research Corporation.
impose taxes on mining companies.
Among the topics scheduled for debate and discussion are the federaliza-
Even more objectionable is the estab-
tion of Medicaid, health care cost containment, the solvency of social
lishment of a supranational mining
security, and drug abuse.
company called "Enterprise" which
page 5
ALEC'S
1982
Departure Date
HOUSING APPLICATION
If arrival after 6 P.M., is payment quaranteed?
Single
Double
Telephone
Order of Preference
Rates
Rates
Share with
Chattanooga Choo Choo Hilton & II
$50
$60
RLD'S
Chattanooga Choo Choo Hilton III
$60
$70
Registration fee includes admittance to legislative
Sheraton Downtown
$45
$55
working sessions, energy tour, all meal functions and
Read House (one double bed per room)
$40
$50
conference packet. Day at World's Fair not included.
Howard Johnson's (one double bed
per room)
$28
$32
ALEC Legislative member
$110
Golden Gateway
$28
$35/$42
FAIR
ANNUAL
State legislator
$135
Holiday Inn Lookout Mountain
$26
$33
Business, Individual, non-profit
$300
MEETING
Exhibitor
$600
Hotel assignments will be made in the order reser-
Spouse Registration fee includes tickets to all meal
vations are received. All reservations should be sub-
functions. Spouse fee
$100
mitted on the ALEC reservation form. Hotels will not
REGISTRATION FORM
accept direct reservations and will only honor the
World's Fair Package-June 17
special convention rates when the reservation is pro-
Includes admission tickets and transportation to the
cessed through ALEC. To assure the accommodations
Name
World's Fair.
of your choice reservations should be made early.
Company
Enclosed is my registration fee $
Reservations will be confirmed by the hotel. Notify the
Spouse Registration $
hotel or ALEC if you need to change or cancel your
Address
reservations. ALEC will not accept telephone reserva-
Number of tickets for World's Fair Package-
tions.
City/State/Zip Code
#
X $30 = $
Please complete and mail form to: ALEC, 418 C
Telephone
Street, NE, Washington, D.C. 20002.
Late fee after May 19 = $20 $
Arrival Date
Time
Total Amount Enclosed $
Schedule of Conference Events
Wednesday, June 16
Saturday, June 19
New Directions for Enterprise
Registration, Reception/Buffet,
ALEC Annual Meeting attendees will
Zones
Country & Western Entertainment,
participate in a day-long schedule of
Campaign '82 Workshop
Major Address.
panel discussions, workshops and
presentations on various subjects of
Thursday, June 17
timely relevance to State legislatures
Energy Expo '82 World's Fair-Knox-
and lawmakers. Topics will include:
FIRST READING
ville
Keeping State Budgets in the Black
The Newsintter of the American Legislative Exchange Council
Energy, Economic Growth and
Friday, June 18
U.S. Security
Editor Thomas Mack
All-day Energy Tour of the innovative
Governors' Roundtable on Federal-
Managing Editor Sheila Spencer
energy facilities in the Chattanooga
ism
Executive Director Kathleen Teague
area, highlighted by a tour of Sequoy-
State Opportunities for Interna-
ah Nuclear Power facility.
tional Trade
Copyright © 1982, American Legisla-
tive Exchange Council. All rights re-
Friday evening-Banquet and Major
New Federalism and the Business
served. ISSN 0730-109X.
Address
Community
ALEC
FIRST CLASS
U.S. Postage
418 C Street, N.E.
PAID
Washington, D.C. 20002
Permit No. 827
Chairman
Washington, D.C.
Rep. T.W. Stivers
Idaho House of Representatives
First Vice Chairman
Rep. James Reeves
Colorado House of Representatives
Second Vice Chairman
Rep. Penny Pullen
Illinois House of Representatives
Treasurer
Paul Dietrich, former member
Missouri House of Representatives
Secretary
Sen. Ray Taylor
lowa Senate
Executive Director
Kathleen Teague
ALEC'S 1982 WORLD'S FAIR ANNUAL MEETING
CHATTANOOGA
CHOO CHOO HILTON
CHATTANOOGA, TN
JUNE 16-20, 1982
AD HOC
SAMUEL F. WRIGHT
ATTORNEY AT LAW
ALEC
3403 MARQUART
copy
HOUSTON, TEXAS 77027
Sent to Kathy
(713) 626-1580
reaque
May 24, 1981
Mr. Morton Blackwell
Office of Public Liaison
The White House
Washington, DC
Dear Morton:
As I have discussed with you before, many military personnel and overseas
civilians are disenfranchised by technical impediments beyond their control.
The most common problem is mail delay. Under most state election codes, an
absentee ballot must be actually received (not just postmarked) by election day,
or the ballot will not be counted. Unless the ballots are mailed well before the
election, the voter will not be able to return the ballot in time. Many states
do not begin mailing absentee ballots until 15-20 days before the election. This
is adequate time for a college student 100 miles from home, but it is not adequate
time for a sailor on a ship in the Indian Ocean or a civilian working at an Aramco
project in the middle of Saudi Arabia.
As you know, most military personnel who do vote vote heavily Republican. For
example, in the controversial election for State Representative in District 57-C
of Bexar County, Texas, there were 3,021 absentee-by-mail voters, of whom 2,804
were military. Among the absentee-by-mail voters, the Republican candidate (School-
craft) won by a margin of 1,711 to 911. (The others refrained in that race.) I
believe that this percentage held true all over the country. Military personnel
were justifiably angry at Carter and the Democrats in Congress for "pay caps" and
other actions which put many military personnel below the poverty level. Now,
under President Reagan and the Republican-controlled Senate, great strides are
being made to "rearm America." President Reagan, Senator Tower, and most Republican
leaders recognize that the personnel problem is even more serious than the hardware
problem. The Republicans are pushing for military pay raises and other actions to
improve the quality of life of military personnel and their families. These efforts
are being reported in the newspapers that serve military people, and they recognize
that generally speaking the Republicans are looking out for their best interests and
the Democrats are not. For this reason, it can be expected that military personnel
will continue to vote Republican heavily for the foreseeable future.
I don't have any hard data on the voting habits of overseas civilians, but I
believe that they tend to vote Republican. Most American civilians overseas are
managerial or professional employees of multinational corporations. Such corpora-
tions generally get their "blue collar" workers from the indigenous population.
Thus, most overseas civilians tend to be in the economic class that generally votes
Republican. Helping overseas civilians as well as military personnel to vote will
be helpful to Republican candidates.
Military personnel and overseas civilians have the right to vote under federal
law, but the procedures for absentee voting are generally a matter of state law.
If a state does not mail the ballots in time for the voter to receive them and return
them before the election, the federal right is largely meaningless. It would be
possible, I suppose, for Congress to legislate absentee voting procedures and to
set the date when ballots are to be mailed, etc. However, this would be contra
to President Reagan's ideas about federalism, and many technical problems would
arise. My proposal is that we make a major effort to communicate with the state
legislatures and urge them to enact specific proposals to facilitate absentee
voting by military personnel and overseas civilians. As you know, I have prepared
a summary of the election laws of each state. Absentee voting laws are included
in my summaries. I could prepare suggestions for each state.
I have spent most of this Spring lobbying our Texas Legislature to pass such
legislation. Yesterday, I was successful with Senate Bill 42. The Senate passed
this bill about 3 weeks ago, and the House passed it yesterday. The bill makes
two important changes in the laws governing absentee voting. In the first place,
it allows the County Clerks to begin mailing absentee ballots to overseas and
military addresses 45 days before the election, instead of 30 days before the
election. In the second place, it extends the deadline for the receipt of a mailed-
in absentee ballot from 1 PM on election day to 7 PM on election day. This will
give military and overseas voters an additional 15 days and 6 hours to get their
ballots in.
During our recent discussion in your office you suggested that you might
convene an informal conference in your office conference room on this subject.
I would like very much to help you organize such a conference. I am enclosing
a list of persons who should be invited and/or organizations that should be
invited to send a representative.
I start work at the Center on National Labor Policy on June 15, and I shall
be moving to the area a few days before that. The address below will be my home
address after June 15.
Sincerely,
Samuel SamethWright F. Wright
1201 S. Scott St., #422
Arlington, VA 22204
Enclosure
Copy to: RAdm Penrose L. Albright, JAGC, USNR (ret.)
SUGGESTED INVITEES FOR CONFERENCE ON VOTING RIGHTS OF MILITARY PERSONNEL AND OVER-
SEAS CIVILIANS
1. Mr. Hank Valentino
Head, Voting Assistance Office
Department of Defense
Office of the Secretary of Defense
Pentagon, #2E789
Washington, DC
(202) 695-9330
2. Mr. Bill McGee
(If you invite this fellow, it may be necessary to also
Republicans Abroad
invite Democrats Abroad to send a representative.)
Republican National Committee
310 First St. SE
Washington, DC 20003
(202) 484-6500
3. RAdm Penrose L. Albright, JAGC, USNR (ret.)
Attorney at Law
2306 S. Eads St.
Arlington, VA 22202
(703) 979-3242
4. James H. Straubel
Executive Director
Air Force Association
1750 Pennsylvania Ave. NW
Washington, DC 20006
(202) 637-3300
5. Frank C. Fini
Executive Director
Air Force Sergeants Association
4235 28th Ave., Suite 713
Marlow Heights, MD 20031
(301) 899-3500
6. Major General Robert F. Cocklin, USA (ret.)
Executive Vice-President
Association for the U.S. Army
2425 Wilson Blvd.
Arlington, VA 22201.
(703) 841-4300
7. Robert W. Nolan
National Executive Secretary
Fleet Reserve Association
1303 New Hampshire Ave. NW
Washington, DC 20036
(202) 331-1034
8. Capt. Vincent Thomas, Jr., USN (ret.)
Navy League of the United States
818 18th St. NW
Washington, DC 20006
(202) 298-9282
9. James O. Duncan
Executive President
Noncommissioned Officers Association
110 Maryland Ave. NE, #510
Washington, DC 20002
(202) 546-7891
10. Lieutenant General Leroy J. Manor, USAF (ret.)
Executive Vice-President
The Retired Officers Association
201 N. Washington St.
Alexandria, VA 22314
(703) 549-2311
11. CW4 Donald E. Hess, USA (ret.)
U.S. Army Warrant Officers Association
P.O. Box 2040
Reston, VA 22090
(703) 620-3986
12. Cy Kammeier
Executive Director
Marine Corps League
933 North Kenmore St.
Arlington, VA 22201
(703) 524-1137
13. Colonel John Sheffey, USA (ret.)
Executive Vice-President
National Association for the Uniformed Services
P.O. Box 1406
Springfield, VA 22151
(703) 750-1342
14. RAdm James E. Forrest, USN (ret.)
Executive Director
Naval Reserve Association
910 17th St. NW, Suite 817
Washington, DC 20006
(202) 467-6620
15 ALEC
16. Sam Wrig hit
MASON, MASON AND ALBRIGHT
ATTORNEYS AT LAW
2306 SOUTH EADS STREET
C. A. MASON (1866-1943)
ARLINGTON, VIRGINIA 22202
JOHN M. MÀSON (1893-1963)
TELEPHONE
PENROSE L.ALBRIGHT
May 15, 1981
703 979-3242
WILLIAM B. MASON
Mr. Richard Richards,
Chairman, Republican National Committee
310 First Street, S. E.,
Washington, D. C. 20003
Dear Mr. Richards:
I am told the Department of Defense Voting Assistance
Office has been less active than it could be to assure all
servicemen are provided opportunity to vote. The Voting Assistance
Office should be diligently ramroding the Armed Services to ensure
all servicemen have proper opportunity to register and request
absentee ballots, and also should be visiting with Committees of
state legislatures to ensure state laws fully favor with service-
men's voting rights.
We have roughly two million men in uniform. Most are
eligible to vote. In fact, roughtly 40% of those eligible do
vote and, as it happens, these votes tend to be conservative
and Republican. Because such votes may be one or more percent
of the vote in various districts and states, their impact is not
negligible.
It would seem the Administration should do all it
properly can to ensure all servicemen are afforded an opportunity
to vote in National and State elections. This means the Department
of Defense Voting Assistance Office should be properly manned and
funded. This would be true even if Servicemen's votes did not
tend to be conservative-Republican. However, it has Been suggested
the record of the Carter Administration, insofar as the DOD Voting
Assistance Office was concerned, was to cut funding -- particularly
funding for travel which is so necessary if the state legislatures
are to have the benefits of DOD experience concerning voting
rights of servicemen.
Perhaps the information I have received is incorrect.
Nevertheless, I suggest it should be checked out.
Sincerely yours,
Penrose Lucas Albright
THE
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E.
Washington, D.C. 20002
(202) 547-4646
Policy Survey: Block Grants
June, 1981
On May 29, 1981 ALEC mailed a policy survey on block grants to all
7,500 state legislators in America. To date, approximately 400
legislators from all 50 states have responded. Following are the results:
1.
Have you polled your constituents regarding the Reagan Administration's
block grant proposals?
Republicans
Democrats
Total
Yes: 21%
Yes: 24%
Yes: 22%
No: 79%
No: 76%
No: 78%
If yes, does the majority polled approve or disapprove of
the proposals?
Republicans
Democrats
Total
Approve: 88%
Approve: 65%
Approve: 76%
Disapprove: 12%
Disapprove: 35%
Disapprove: 24%
2.
Do you feel that you adequately understand how the proposed
block grant program would affect your constituents and your state?
Republicans
Democrats
Total
Yes: 62%
Yes: 57%
Yes: 60%
No: 38%
No: 43%
No: 40%
3.
If the Congress does approve the block grant plans, to whom
should the grant monies and authority be dispersed?
Republicans
Democrats
Total
Legislatures: 88%
Legislatures: 76%
Legislatures: 83%
Planning
Planning
Planning
Agencies: 3%
Agencies: 9%
Agencies: 5%
Governor: 9%
Governor: 15%
Governor: 12%
A non-profit, non-partisan, tax-exempt organization serving State Legislators and Members of Congress
4.
In your state, are there any duplications of services
provided by Federal, State, or Local agencies?
Republicans
Democrats
Total
Yes: 90%
Yes: 77%
Yes: 84%
No: 10%
No: 23%
No: 16%
5.
What impact do you think that block grants will have on
waste, fraud, administrative overhead, and program costs?
Republicans
Democrats
Total
Favorable impact: 91%
Favorable impact: 59%
Favorable: 75%
None: 1%
None: 19%
None: 10%
Unfavorable: 5%
Unfavorable: 15%
Unfavorable: 10%
No opinion: 3%
No opinion: 7%
No opinion: 5%
6.
Would President Reagan's proposed budget revisions and block
grants require increased taxes in your state?
Republicans
Democrats
Total
Yes: 33%
Yes: 54%
Yes: 44%
No: 64%
No: 35%
No: 50%
N/A: 3%
N/A: 11%
N/A: 6%
7.
Are there any education programs which do not exist in your
state because of a lack of adequate funding?
Republicans
Democrats
Total
Yes: 14%
Yes: 27%
Yes: 20%
No: 86%
No: 73%
No: 80%
8.
Consider the following statement: "President Reagan's New Federalism --
returning power and programs to the states -- is an improvement over
Federal-State relations as conducted by the Carter Administration."
Do you agree or disagree with this statement?
Republicans
Democrats
Total
Strongly agree: 84%
Strongly agree: 33%
Str. agree: 59%
Agree: 13%
Agree: 20%
Agree: 17%
Disagree: 2%
Disagree: 17%
Disagree: 9%
Strongly_disagree: *
Strongly disagree: 21%
Str. disagree: 10%
N/A: *
N/A: 9%
N/A: 5%
*
Less than 1%
9.
If you were a U.S. Congressman, would you vote for or against
the block grant programs, as proposed by the Reagan Administration?
Republicans
Democrats
Total
For: 95%
For: 57%
For: 76%
Against: 5%
Against: 43%
Against: 24%
10.
If you were a U.S. Congressman, would you vote for or against
the Reagan Administration's proposed thirty percent across-the-
board reduction in personal income taxes?
Republicans
Democrats
Total
For: 87%
For: 35%
For: 61%
Against: 13%
Against: 65%
Against: 39%
Consewatives-
ALEC
American Legislative
Exchange Council
FIRST READING
18C Street, N.E., Suite 200
Washington, D.C. 20002
(202) 547-4646
The Newsletter of the American Legislative Exchange Council
Vol. 7 - No. 6
June 1981
Block Grants Clarified,
But Now Endangered
One of the most timely reforms
in Federal-State Relations is the
Reagan Administration's proposed
consolidation of Federal grant pro-
grams. Known as "block grants,"
the President's plan would allow
states discretionary flexibility over
100 categorical grant programs that
are now regulated by the Federal
government.
At the April 30 White House
Briefing for ALEC members (see
article at right), Administration
Vice-President George Bush acknowledges applause from 200 ALEC legislators in
officials outlined some advantages
the East Room of the White House. Sharing the table with the Vice-President is
(R to L) Asst. to the President for Intergovernmental Affairs, Richard Williamson,
of block grants over the status
Treas. Sec. Donald Regan, and Asst. to the President for Policy Development,
quo. The most obvious advantage,
Robert Carleson.
according to Presidential aide
Robert Carleson, is the freedom to
fund state-operated programs at
200 ALEC Members Attend Exclusive
state-determined levels. Under the
present system, the U.S. Congress
White House & Cabinet Briefing
dictates to states not only spending
Between April 29 and May 1,
dent Reagan's Assistant for Inter-
levels, but also eligibility criteria.
200 ALEC members from 47 states
governmental Affairs, Richard
Block grants allow states to rewrite
participated in a very timely, but
Williamson. Mr. Williamson spoke
duration standards, benefit levels
unusual event-one that is not
for thirty minutes about the White
and program priorities.
likely to be duplicated for a very
House policy towards revenue shar-
(Continued on page 6)
long time. The ALEC State legis-
ing, block grants, deregulation, and
lative leaders were briefed by six
Federal budget cuts. He vowed to
ALEC Surveys the States
Cabinet Secretaries and five top
continue to solicit State Legislator's
aides to the President.
On May 27, the ALEC Research
opinions on the next round of
The briefings began with an
Department sent to all 7,500
budget cuts.
April 29 reception attended by
The next speaker was Energy
State Legislators an opinion survey
Congressional and White House
Secretary James Edwards, who used
on Federal budget changes and
leaders, business executives and
his platform to disclose new devel-
block grants. The survey gives state
policy analysts. The reception al-
opments in Federal energy policy.
lawmakers a chance to express re-
lowed the 200 ALEC members a
He projected the cost of various
actions to President Reagan's New
chance to renew acquaintances and
forms in energy in the states-
Federalism. Until now, State Legis-
exchange news about legislative
gas, oil, coal, nuclear-and exam-
lators had no outlet for voicing
developments in their states.
ined the basis for his projections.
their reaction to impending changes
Promptly at 8:00 the next morn-
The Secretary also disclosed the
affecting the States. The results
of this timely poll will be made
ing, the ALEC legislators gathered
Energy Department's revised policy
in the Georgetown University moot
toward lawsuits initiated against
public in the next issue of First
courtroom-two blocks from the
Reading.
state energy statutes (e.g., the
Capitol-to hear remarks by Presi-
Montana severance tax).
(Continued on page 2)
(Continued from page 1)
Secretary of Education Terrell
Donald Regan. Secretary Regan
requesting a list of ten ineffective,
Bell followed Secretary Edwards.
took the occasion to reaffirm the
duplicative, or costly regulations.)
Mr. Bell explained the intent and
President's commitment to a multi-
The day ended with a dinner
content of the two education block
year, systematic reduction of tax
featuring Health & Human Services
grants, noting the differences such
rates. He reminded the ALEC
(HHS) Secretary Richard Schwei-
grants will mean for program fund-
members that the multi-year tax
ker. Secretary Schweiker, who has
ing. The Secretary told the legis-
reduction is only part of the
met privately with ALEC members
lators about his timetable for
Reagan tax program. He listed tax
on several occasions, presented a
decentralizing particular education
indexing, accelerated depreciation,
slide show documenting changes
programs (e.g., Impact Aid), and
tuition tax credits and enterprise
in the HHS budget. The statistics
invited ALEC to set up a formal
zone tax incentives as definite
were enlightening: With 36% of the
task force to meet with him on a
components of the Administra-
Federal budget, HHS share of the
regular basis.
tion's tax plan.
reductions is only 20.5%; still,
The next two sessions were tech-
Presidential aide Richard William-
the increase in HHS budget from
nical remarks about the President's
son then introduced Vice-President
FY 1981 to FY 1982 equals
Federal budget revisions and trans-
George Bush. Mr. Bush devoted
$21.5 billion, or 54% of the in-
portation programs. Larry Kudlow,
most of his comments to the work
crease in total Federal outlays.
the Assistant Secretary (for Eco-
of the President's Task Force on
On the morning of May 1, the
nomic Policy) of the Office of
Regulatory Relief, of which Bush
200 ALEC members concluded the
Management & Budget (OMB)
is Chairman. He noted that the
briefing with a breakfast hosted
spoke for one hour about the
Task Force has already identified
by The Heritage Foundation at-
President's public aid reductions.
$9 billion worth of regulatory
tended by U.S. Senators Charles
He also disclosed the conclusions
reliefs. "We're going out to the
Grassley (R-IA) and Steve Symms
of an OMB study that gives a
departments, to businesses, to la-
(R-ID) and U.S. Representative
state-by-state breakdown of the
bor, to the environmentalists ask-
Richard Cheney (R-WY). The three
jobs that may be created by the
ing for suggestions," Mr. Bush
Congressional leaders each spoke
Reagan-Kemp-Roth tax cut. Trans-
declared. (As indicated in last
for fifteen minutes, varying the
portation Secretary Drew Lewis
month's First Reading, the Vice-
subjects from block grants to tax
gave an equally lucid and techni-
President sent ALEC a letter
reform to public aid reductions.
cal speech about new mass transit
and highway programs.
The ALEC members gave a most
Roster of Participants-And Where to Contact Them
enthusiastic response to Interior
Secretary James Watt, who spoke
in order of appearance
at the luncheon. Mr. Watt recalled
the origins of the Sagebrush Re-
Richard Williamson, Assistant to the President for Intergovernmental
bellion, and recognized many state
Affairs (202/456-7007)
lawmakers by name and accom-
James Edwards, Secretary of Energy (202/252-6210)
plishments. The Secretary received
several standing ovations, such as
Terrell Bell, Secretary of Education (202/426-6420)
the time when he announced a
Larry Kudlow, Assistant Director of Office of Management & Budget
moratorium on Federal land ac-
(202/395-5873)
quisitions that will save taxpayers
Drew Lewis, Secretary of Transportation (202/426-1111)
$300 million.
James Watt, Secretary of the Interior (202/343-7351)
After lunch, ALEC members em-
barked on an afternoon working
James Baker, Chief of Staff (White House) (202/456-6797)
session at the White House. The
Robert Carleson, Assistant to the President for Policy Development
session was comprehensive: White
(202/456-6630)
House Chief of Staff James Baker
Max Friedersdorf, Assistant to the President for Legislative Affairs
and Assistant to the President for
(202/456-2230)
Congressional Liaison Max Frieders-
dorf discussed White House strategy
Donald Regan, Secretary of the Treasury (202/566-2533)
vis-a-vis the congressional budget
George Bush, Vice-President of the United States (202/456-7034)
resolutions; and Robert Carleson,
Richard Schweiker, Secretary of Health & Human Services
Assistant to the President for
(202/245-7000)
Policy Development, reviewed the
history of the block grant concept.
U.S. Senator Steve Symms (R-ID) (202/224-6547)
The "White House phase" of the
U.S. Senator Charles Grassley (R-IA) (202/224-3745)
briefing continued with a special
U.S. Congressman Richard Cheney (R-WY) (202/225-2311)
appearance by Treasury Secretary
page 2
A Pictorial Chronology
of the Briefing
ALEC Members listen as Richard Williamson, Assistant to the
The first Cabinet Secretary to address the State Lawmakers was
President for Intergovernmental Relations, explains the scope and
James Edwards, Secretary of Energy. Secretary Edwards projected
intent of the Reagan Administration's New Federalism.
the cost of energy (coal, oil, gas, etc.) over the next few years, and
referred the legislators to several studies.
GEORGETOWN
UNIVERSITY
Education Secretary Terrell Bell declares his willingness to consult
Larry Kudlow, Assistant Director of the Office of Management
State Legislators about block grants, litigation against local schools
and Budget (OMB), discloses how many jobs may be created in each
and regulatory reform. His remarks included a pledge to meat with
state because of the President's tax and budget proposals.
an ALEC task force.
Mr. Kudlow identified six advantages to the block grant plans.
0000
Transportation Secretary Drew Lewis explained new state responsi-
During the luncheon session, legislators heard Interior Secretary
bilities for highway and railroad programs. Looking on are ALEC
James Watt defend details of new land-use and environmental
Executive Director Kathleen Teague and National Chairman
policies. Secretary Watt reiterated his support for the Sagebrush
T.W. "Tom" Stivers.
Rebellion, and promised to sell 20 million acres of public land
each year.
page 3
At the White House, Richard Williamson (right) moderated a panel
Treasury Secretary Donald Regan vows to "stand firm on real
discussion with White House Chief of Staff James Baker (center)
cuts in the income and business tax rates." Both Regan andRobert
and Assistant to the President for Policy Development Robert
Carleson (left) attended the subsequent White House reception.
Carleson (left).
Assemblyman William Leonard of Cali-
At a lavish reception in the State Dining room of the White
Richard Schweiker, Secretary of the
fornia asks a question about block grants.
House, Vice-President Bush spent thirty minutes meeting
Federal Health & Human Services
each of the ALEC Members in attandance. Pictured here are
Department, hosted the dinner follow-
Michigan Representative Alan Cropsey (left) and Richard
ing the White House reception. Secretary
Fessler (right).
Schweiker recapped the major points
of the briefings, and told of upcoming
changes in categorical health program.
POWICITS
American Legislative
Americ
ALEC
Exchange Cound
Excha
SEALTY
At a breakfast hosted by The Heritage Foundation,
U.S. Senator Steve Symms (R-ID) tells ALEC
The ALEC National staff who arranged and co-
Senator Charles Grassley (R-IA) admonished legisla-
members of impending changes in Federal farm
ordinated the briefing session are pictured from
tors to use budget and block grant changes as the op-
policies. Congressman Richard Cheney (R-WY)
left to right: Julianne Graham, Ted Hess, Edgar
portunity for further changes in state-run public aid
(far right) prepares his own remarks for the
Vash, Kathleen Teague, and Mariana Griesmer.
programs. Idaho Rep. Tom Stivers (center) and Iowa
briefing attendees.
Senator Ray Taylor (left) listen attentively.
page 4
"Just a short note to thank you
Reflections on the Briefing
so very much for putting together
what I consider the finest confer-
ence I have ever attended. During
"From the response we have
"I want to compliment you and
our briefing with Secretary of Edu-
received, I believe the ALEC
the members of ALEC for the tre-
cation Bell, he mentioned setting
members found the briefing bene-
mendously successful Presidential
up an ALEC group to meet with
ficial. We hope to continue working
Economic Recovery Briefing last
his Department and confer on
with state legislators as they will
issues of state concern. I met with
week.
play a significant role in the Presi-
ALEC is certainly of immense
the Department of Education [sic]
dent's program.
value to State Legislators, of both
on Friday and discussed Colorado's
It was a pleasure working with
parties, and I am proud to be
needs, and would like very much
you and your staff and I look
associated with such an outstand-
to be included on whatever panel
forward to other occasions."
ing organization."
is set up by ALEC for this dialogue
at the Federal level.'
Judy F. Peachee,
Assemblyman Donald J. Albanese,
Special Assistant to the President-
General Assembly of New Jersey
Senator Cliff Dodge,
Intergovernmental Affairs
Senate Chamber-State of Colorado
"I want you to know how much
"The excellent conference that
"I was happy to take part in your
I appreciated you arranging for my
recent White House and Cabinet
invitation to attend the White
you sponsored at the White House
Briefing and appreciate your kind
House briefing on the Federal Bud-
at the end of April has prompted
invitation. It was good to see you
get. I had a most informative and
me to do something I should have
and the others and I, too, look for-
enjoyable time, and appreciated
done a long time ago, send in my
ward to working with ALEC in
your kind consideration."
application for membership.
the months ahead."
The conference was really excel-
Rep. Glen L. Bower,
lent. There is no substitute to hear-
Max L. Friedersdorf,
Illinois House of Representatives
ing and seeing the cabinet officers
Assistant to the President
in person to understand the nation-
"I can't begin to tell you how
al program. We were all very much
"As a strong supporter of the
much I enjoyed your recent meet-
impressed with the ability and com-
President's Economic Recovery
ing in Washington, D.C. and how
petence of the cabinet officers."
Program, I was delighted to get a
much I respect the work your
first hand briefing. At every gather-
organization is doing. This was
Representative Bradford Gorham,
ing I attend, as I campaign for
Minority Whip-Rhode Island
my first direct involvement with
Governor, I am sharing the urgency
House of Representatives
ALEC and I was very impressed,
of supporting the President's pro-
you will have my unqualified and
"Congratulations for a great event
gram. The response which I am get-
most enthusiastic support in your
last week!
ting is extremely positive. I do feel
future endeavors.
You have performed a signifi-
that President Reagan's Economic
Please send me about twenty
cant service to the President and
Recovery Program has the backing
(20) more applications and I will
ultimately to the country.
of the American Public."
see that the Missouri Legislature
Thank you for inviting me to
Senator James H. Wallwork,
will be well represented in ALEC."
participate in the program.
Assistant Minority Leader-
New Jersey State Senate
Rep. Roy Cagle,
Charles Hardwick,
Missouri House of Representatives
Assemblyman, District 20,
General Assembly of New Jersey
"Let me congratulate you on the
very fine program that ALEC
provided those state legislators who
attended the White House-Cabinet
briefing. I am sure that I speak
for many in saying that I came
home very inspired and encouraged
by the determination of the leaders
of this administration to accom-
plish the commitments of President
Reagan. I am most grateful that
I had the opportunity to attend
this very exciting conference."
Delegate Ellen R. Sauerbrey,
House of Delegates,
Annapolis, Maryland
page 5
Federal Review
Congressmen Jack Kemp (R-NY) and Robert Garcia (D-NY) have introduced a new version of their "Urban
Jobs and Enterprise Zone Act." The new bill, which was drafted after five months of discussion with Reagan Ad-
ministration officials, offers a variety of incentives for employers and employees to locate in business-depressed
areas. The incentives include a 40% exclusion on the tax liability for interest gained from loans and mortgages-
a move which gives lending institutions an incentive to loan money to new businesses. Other provisions include:
A repeal of the Federal capital gains tax
Authorization for businesses to use the cash receipts method of accounting (rather than the accrual method)
A 20-year extension of net operating loss carryover
A refundable employer tax credit of five percent of the wages paid to certain workers
A refundable employee tax credit of five percent of their enterprise zone income
A new tabulation by the ALEC Research Department shows that there are over 60 versions of enterprise
zone legislation introduced, pending or enacted in the states. The Reagan Administration's Cabinet Council has
requested multiple copies of ALEC enterprise zone studies, to be used as discussion material.
(Continued from page 1)
As of June 5, however, the
opinions of state and local offi-
Education Secretary Terrell Bell
President's block grant legislation
cials. A representative of the
identified two other virtues of the
appeared endangered by legislative
National Conference of State Legis-
block grant approach. The principal
delays and special-interest politics.
lators (NCSL), for example, testi-
advantage, Bell told the ALEC
The U.S. Senate Labor & Human
fied in Congress against four
members, is the program savings
Resources Committee voted to
health block grants, even though
effected at the state and local
support two health bills that
the enabling legislation wasn't even
levels. Since spending mandates
authorize Federal spending levels
made public at that time. The
are, by definition, a requirement
that exceed what would have been
NCSL delegate argued that funding
that states make certain expendi-
contained in a block grant bill.
of health programs is a Federal
tures, it follows that their elimina-
Supporters of block grant legisla-
responsibility, whereas block grants
tion through block grants will
tion abruptly cancelled a Commit-
would require increased taxes at the
reduce state spending.
tee mark-up session on four health
state and local levels.
Another advantage of block
block grants, fearing that the
grants, said Secretary Bell, is the
Committee would not support such
The U.S. Conference of Mayors
elimination of regulations that con-
legislation.
is one of the most vocal critics
flict with existing state statutes.
Almost 100 special interest
of block grants. The Conference
For example, almost every state
groups have declared their unquali-
is distributing several studies claim-
now has extensive programs for
fied opposition to the plan. Sixty-
ing that state legislatures are
bilingual education and handi-
three national organizations are
insensitive to the needs of cities.
capped services. Federal rules that
circulating a joint letter telling
"[Mayors] are very concerned
duplicate these statutes are either
Congressmen to regard block grants
about block grants, and about the
redundant or recalcitrant. If a state
as an unfair, inequitable budget-
way they have been designed," said
repeals its law, then the Federal
cutting measure.
a spokesman. "There are no assur-
regulation-which has precedence
Some of the opposition to block
ances that money will go from
over any state law-will perpetuate
grants is generated by organiza-
states to cities that need to fund
the repealed policy.
tions that claim to represent the
programs."
FIRST CLASS
ALEC
U.S. Postage
PAID
Permit No. 827
418 C Street, N.E., Suite 200
Washington, D.C.
Washington, D.C. 20002
Chairman
Rep. T.W. Stivers
Idaho House of Representatives
First Vice Chairman
Sen. John R. McCune
Oklahoma Senate
Second Vice Chairman
Rep. Penny Pullen
Illinois House of Representatives
Treasurer
Hon. Paul Dietrich, former member
Missouri House of Representatives
Secretary
Sen. Daniel W. Richey
Louisiana Senate
Immediate Past Chairman
Rep. Donna Carlson West
Arizona House of Representatives
ALEC
418 C Street, N.E.
||||||||
FIRST READING
Washington, D.C. 20002
(202) 547-4646
The Newsletter of the American Legislative Exchange Council
Vol. 8, No. 10 October 1982
What Happened to New Federalism?
An exclusive interview with Richard S. Williamson, Assistant to the President for Intergovernmental Affairs.
FIRST READING interviews the President's point-man on Federalism to explain how the proposal has
changed, what's in New Federalism for the business community, and what we can expect in the coming months.
FR. In his January State of the
FR. A White House memo
Union Address, the President
made available to ALEC last
outlined his proposal for New
Spring stated, "The Federalism
Federalism and the large majority
initiative should be at the top of
of State Legislators who are
the national policy agenda." Yet,
members of ALEC strongly sup-
the press, several Congressmen
ported his proposal. Seven
and Governors are calling the
months after the initial proposal,
President's plan a "dead issue."
the President offered a revised
A recent article appearing in the
version of his New Federalism
Chicago Tribune claims that the
proposal in a July 13 address to
Administration may be backing
the National Association of
away from the Federalism initia-
Counties. Can you spell out the
tive. And yet after the President's
major changes between the fed-
January speech, national polls
eralism plan as it was first pro-
showed that by a margin of 2 to 1,
posed and the federalism plan as
the American public supported
it stands now? And secondly,
the president's proposal. Could
how did we get from there to
you explain to the readers of
here; through what process did
FIRST READING why Federal-
this transformation take place?
Richard S. Williamson, Assistant to the President for Intergovernmental
ism has appeared to be stalled or
R.W. First I think that its im-
Affairs.
failing, and what its prospects are
portant to point out that in his
for the future?
State of the Union address the President made clear that his
R.W. I'd say first the President is not backing off on Fed-
Federalism proposal was a framework-it wasn't a detailed
eralism, or decentralization, and his commitment remains con-
proposal, it was a framework. Second, we engaged in a lot of
stant. I think we can fairly be criticized for having been slow in
discussion with groups of Governors, local officials, legis-
moving from the framework to more specific proposals. Part of
lators-Representative Stivers was among those-and there
it was internal consensus within the administration that wasn't
were various adjustments, but the President just yesterday reit-
reached; also we thought we would have more success getting
erated his view in a meeting that there are no final decisions. So
broader bipartisan support among state and local officials.
what he discussed on July 13th was tentative adjustments in the
Further, if you recall in that time of April, when we had hoped to
initial framework and whether those adjustments eventually be-
go forward, the so-called Gang of Seventeen was involved in
come administration policy or not the President won't decide
budget negotiations, culminating in the President going up
until November some time.
Capitol Hill and meeting head to head with Tip O'Neill and
The key components of a package that I'm pretty confident
going on national TV, followed by seven weeks of intensive work
will remain in the end are thirty to forty categorical grants com-
in trying to get a budget resolution. So what happened, and un-
bined into some type of a block grant, hooked in or attached to
continued on page 4
some form of trust fund which would be funded largely by the
federal excise taxes, those taxes eventually to be returned to the
INSIDE THIS ISSUE:
state level. Now the controversial subject of Medicaid, AFDC
ALEC elects new Officers & Board of Directors, p.3
and food stamps: on them the President genuinely has not made
Tax Limitation Referenda, p.2
up his mind. Initially, his framework had suggested returning
Nuclear Freeze Propositions, p.7
both food stamps and AFDC to state and local governments, and
Balanced Budget Amendment, p.6
the dollar for dollar exchange having federal assumption of the
1983 Jobs for Training Act, p.5
costs of Medicaid. We'r still looking at that as an option.
Tax Revolt Alive and Well in the States
The tax revolt which began with California's Proposition 13
the program will lead to a revitalization of distressed urban
in 1978 is live and well in the 1980's with a least 16 measures on
areas.
this year's statewide ballots that would either cut or limit taxes,
IDAHO: Voters will decide on a tax shifting initiative which
or provide special tax exemptions. Not surprisingly, in several
has stirred political controversy and met with the opposition of
instances ALEC legislators have been the driving force behind
business and agricultural interests in Idaho. If approved, the
these initiatives and referenda to curb the taxpayers' burden
statutory residential property tax exemption initiative would in-
"The significance of these direct ballot questions," says one
crease from 30% to $50,000 or 50% of market value, whichever
ALEC leader, "is that they signal the legislatures that the people
is lower, the amount of residential improvements that can be
want lower taxation and more responsible government. The illu-
exempt from property taxation. According to the Idaho Associa-
sion that tax money pays for all sort of wonderful government
tion of Commerce and Industry, Initiative #1 means a shift of
spending programs to help citizens has been shattered. These
$18.5 million in property taxes to business and agriculture. In-
ballot measures are a very significant indicator of the trend of the
itiative proponents argue, however, that since 1976 the residen-
times and we're going to see more of them throughout the
tial taxes have jumped 83%, while farm and business taxes have
eighties."
increased only 10%.
Nine of the major tax limiting ballot measures voters will be
MAINE: A Maine initiative proposal, sponsored by Republi-
asked to decide upon in the upcoming November elections are
can candidate for Governor, Charles Cragin, would index the
outlined below:
state income tax to the rate of inflation. Since ALEC published
ARIZONA: Drafted by ALEC State Representatives Tony
model tax indexing act (Source Book of American State Legisla-
West and Peter Dunn, Proposition 103 calls for a vote of the
tion 1980), nine states have adopted forms of indexing personal
people to decide whether or not to provide property tax exemp-
income tax, but the Maine initiative appears to be the first time
tions in certain economically depressed or blighted inner city
voters will have the opportunity to decide on indexing.
areas. This is the first such instance in which the voters will have
MISSOURI: Proposition C is a statutory initiative which
the opportunity to decide upon the "Enterprize Zone" concept
would actually raise the state sales tax by 1%. But the proposal
enacted in Arizona. The exemptions would be granted for a
has gained the support from some conservative groups because,
maximum of five years after the property has initially qualified
if approved, the tax will produce an estimated $300 million in
as "urban development property. ALEC supporters believe that
revenues-half of which will go toward local school systems,
and half for local property tax relief.
OREGON: Billed as a "clone" of California's Proposition 13,
this massive property tax cut is receiving wide exposure as sup-
porters launch an educational campaign. Similar measures were
narrowly defeated in 1978 and 1980, but Measure 3 gained
40,000 more signatures than was necessary for certification and
recent polls show 53% in favor of the initiative.
NEVADA: Nevada voters will be asked to decide on six sepa-
rate tax questions, but the most significant is Question 13 which
would overturn the 1981 legislative tax package by lowering the
state sales tax to its 1980 level of 3½ cents, and place any overall
freeze on state taxes.
TENNESSEE: Question #2 on the Tennessee ballot would
provide greater property tax relief for the elderly. Presently, the
state constitution limits the income level of citizens eligible for
tax relief to $4,800. If the measure is approved, the legislature
will have the authority to set higher income levels eligible for
exemption due to cost of living, inflation, etc.
TEXAS: Proposition #1 is a referred constitutional amend-
ment which would repeal the state property taxes. With wide
bipartisan support, the Texas legislature easily passed the meas-
ALEC Member, Texas Senator Walter Mengden on the Texas proposi-
ure as H.J.R. 1. ALEC State Senator Walter Mengden predicts
tion to repeal the state property tax: "Proposition / will unquestiona-
that the voters will overwhelmingly approve the property tax
bly be approved with an overwhelming majority."
repeal.
FIRST READING
"This nation cannot do without the profession of State Legis-
lator, which is more than can be said of, say, the columnist's
The Newshter of the American Legislative E schange Council
profession. Many people are, to put it politely, vague about
what State Legislators are. They are the infantry lieutenants
Editor: Thomas E. Mack
of American government. Many more Americans are reve-
Executive Director: Kathleen Teague
rent about states' rights than are ready to join, or support,
or even notice this infantry."
Copyright © 1982, American Legislative
Exchange Council. All rights reserved.
-George F. Will, 1982
ISSN 0730-109X.
page 2
Several of the ALEC Members who attended the 1982 Annual Leadership Meeting, in Albuquerque, New Mexico on September
10-12, enjoyed the New Mexico landscape.
ALEC Elects 1983 Board of Directors
At the September 10 Annual Leadership Meeting in Albuquer-
Idaho Representative Tom Stivers was honored with a special
que, New Mexico, the American Legislative Exchange Council
award in appreciation for his dedication and leadership as
elected nine members of its 22-member Board of Directors and
ALEC's National Chairman during the last two years. ALEC
new Officers for the ensuing year.
salutes Tom Stivers for his outstanding contribution of time and
Five legislative leaders from across the country were elected
energy to the cause of responsible state government and tradi-
to the ALEC Board for the first time. They are: Missouri Repre-
tional American values.
sentative Roy Cagle, Texas Representative Bill Ceverha, New
The new ALEC National Chairman, Senator Buz Lukens, is a
York Senator Owen Johnson, California Assemblyman Patrick
former two-term Congressman, and presently Chairman of the
Nolan and New Mexico Representative Jerry Sandel. Four cur-
Ohio Senate State Government and Federal Relations Commit-
rent Board members were re-elected to serve another three-year
tee. Having served in the Ohio Legislature for twelve years,
term, including Idaho Representative Tom Stivers, Iowa Sena-
Lukens is a founding member of the American Legislative Ex-
tor Ray Taylor, Illinois Senator Donald Totten and Illinois Rep-
change Council, and has been active on its Board of Directors
resentative Penny Pullen.
since 1974.
ALEC expresses deep appreciation for years of dedicated ser-
At the meeting's adjournment, Senator Lukens told members
vice to retiring Board members: Michigan Representative Ed
of the press that the Board "remains committed to the principles
Fredricks, Arizona Representative Donna Carlson-West, Wash-
upon which ALEC was founded-support for the free enterprise
ington Representative Robert Eberle, Colorado Representative
system, and limited representative government. ALEC's
James Reeves and Louisiana Senator Dan Richey.
growth over the past several years is part of the overall trend to-
The newly elected officers of ALEC are: Ohio Senator
ward the decentralization of government power, and the next
Donald E. "Buz" Lukens, National Chairman; Kentucky Repre-
few years will witness a rise in prominence for this organization
sentative Edward Holloway, First Vice Chairman; Illinois Rep-
because state legislators and the business community recognize
resentative Penny Pullen, Second Vice Chairman; Idaho Repre-
its unique value."
sentative John Brooks, Secretary; and Paul G. Dietrich, Trea-
surer.
Source Book Committee Approves 23 Model Bills
Twelve ALEC legislators who serve on the Source Book
reducing government bureaucracy, and raising revenues with-
Committee met in Albuquerque at the Annual Leadership Meet-
out raising taxes. It also offers guidance on creating oppor-
ing to discuss details for the 1983-84 edition of the Source Book
tunities for international trade and making constructive im-
of American State Legislation, to be published in December of
provements in our criminal justice system."
this year. Kentucky Representative Ed Holloway chairs the
ALEC Members serving on the 1983-84 Source Book Com-
committee which reviewed the final index, divided into five
mittee are: Representative Ed Holloway, Kentucky, Chairman;
categories: Fiscal Responsibility, Privatizing the Public Sector,
Senator Owen Johnson, New York; Senator Donald Totten, Il-
Criminal Justice Reform, International Trade, and Health Care
linois; Representative Lois Stratton, Washington; Senator Buz
and Consumer Protection.
Lukens, Ohio; Representative William Ceverha, Texas; Senator
Holloway commented on the new Source Book, which will be
Eva Scott, Virginia; Representative David Copeland, Tennes-
distributed to every State Legislator, state official, and Member
see; Representative Jerry Sandel, New Mexico; Delegate Lacey
of Congress: "The 1983-84 Souce Book of American State Leg-
Putney, Virginia; Representative Tom Stivers, Idaho; Senator
islation will provide state legislators with a solid blueprint for
Stan Aronoff, Ohio; Senator George Wiggins, New Hampshire.
reform in the 1980's in the area of privatizing public services,
page 3
Williamson Interview
the President talked with Scott Matheson, the head of National
continued from page 1
Governors' Association, and said, look, I want you to come up
with something. And the idea is that the Administration has car-
derstandably so, we got elbowed out to a degree. In July the ad-
ried almost all the water on this thing, and let' S get them to show
vice received from some of our good friends, people like Paul
a little more faith.
Laxalt, Pete Domenici, and Bill Roth, all of whom who had been
very supportive of the effort was: we're getting so late into the
FR. You said earlier that you thought you would have more
campaign season, this is going to become a political football,
success getting broad bi-partisan support among state and local
people are going to have to take sides on it, without having a
officials. Do you feel that New Federalism has not gotten the
good grasp of it, and that will make it harder for us to pass it next
support you expected?
R.W. Well you can look at it two ways: it's not as much as
year.
you wantlit's more than a lot of people expected. I'd say that you
"the President is not backing off on
do have a majority on a bi-partisan basis, you would have liked
Federalism, or decentralization, and his
to have had two-thirds or so but I think there's no question that
commitment remains constant."
at the grassroots people strongly, just intuitively understand
that in Washington they don't get fair bang for their bucks, that
So what the President did was not back off on the policy
they want these decisions close to them and they support it. And I
agenda but back off on the timing, because recognizing that
think many and I hope most Members of Congress if they were to
Congress would only be in briefly in August and had only the
be totally candid would agree with that.
month of September for the Continuing Resolution, appropria-
tions etcetera, we're not going to get congressional considera-
"I think there's no question that at the grassroots
tion on it. And by then the administration had decided to get out
people strongly, just intuitively understand that
front very vigorously on the Balanced Budget Amendment. We
in Washington they don't get fair bang for their
said we would take it off the calendar until after the election but I
bucks, that they want these decisions close to them
hope that its not interpretted as a lack of commitment on the part
and they support [New Federalism]."
of the President or the Administration to move forward. The
President does feel very strongly about it and I think that there's
Our problem is that once you go up the Hill you're going to
no question he would feel that its a major disappointment to his
have just an army of special interests in this town who want to
administration if we don't get it eventually.
keep things here, for them to manipulate, are going to be ac-
tively lobbying on the one side. And we have to set up the posi-
FR. Many state legislators and Congressmen feel Ronald
tion where state and local officials and grassroots citizen or-
Reagan was elected by the people to turn responsibility back to
ganizations feel galvanized to work on the other side and sup-
the states and curtail the growth of "big government." The
port the President's position.
Administration has spent many months negotiating the details of
Federalism with a number of state and local interest groups,
FR. Two related questions concerning Federalism and the
modifying its position on some points of the program. The
economy. Many readers of FIRST READING are government
National Governors' Association has apparently scrapped the
affairs officers of corporations. Can you explain what is in the
Administration plan altogether and decided to draft their own
New Federalism for them, and why the private sector should
federalism plan. The question many readers of FIRST READ-
support the President's plan? It wouldn't surprise us if the large
ING would like to have answered is why the Administration has
majority of CEO's have very little notion of what Federalism
not finalized any legislation to offer Congress? Isn't Congress
means. Has the Administration made any attempt to enlist the
the appropriate forum for debating the issue of Federalism?
support of the business community?
R.W. Revenue sharing was first brought up in the mid 60's
R.W. We're very encouraged for example that Dick Lesher
but it did not pass and become law until the early 70s. A number
and the Chamber of Commerce have been very strong up front in
of people in this administration were very much involved in that
supporting the President's New Federalism and the polls of
battle, with President Nixon: Murray Weidenbaum, Ed Harper
their membership has been overwhelmingly in favor of it. And I
and others. Their advice, as well as the advice of Howard
think what they recognize, is that as long as you keep all of these
Baker, Barber Conable and others who all supported the con-
responsibilities in Washington, and these special interests
cept, was that the reason that it took 6 years from the introduc-
focused in Washington, you will have incredible and relentless
tion of the concept of revenue sharing to get it into law was that
pressure for excessive federal spending; and that results in two
there was no consensus among state and local officials. It
things: 1) pressure for higher taxes, and 2) pressure for deficit
doesn't need unanimity or even majority, but it was necessary to
budgets.
have that consensus because Congress wasn't going to move
And I think every businessman in America understands that
until that. So we thought indeed the overall process would be
higher taxes choke the private sector, and that higher, deficit
shortened by us investing time to do that at the outset as opposed
spending crowds out, contributes to inflation and interest rates
to afterwards up on the Hill.
being too high. So on the pure economic side, easing of the pres-
Now we do not feel that the President is hostage to any of the
sure on the Federal budget, by dispursing some of these respon-
public interest groups; he will go forward whether or not any of
sibilities and dispursing the special interests that in turn cause
those groups happen to endorse it. We do feel that these eight
the increases in federal spending is an advantage.
months have given us a much broader bi-partisan coalition; be-
Secondly, I'd say I think most members of the business com-
cause the fact of the matter is, not only conservative state and
munity can appreciate just on a pure managerial sense, the
local officials support the concept of decentralization, but many
value and importance of having the decision-making diffused.
of those who might not support the President on other areas
And third I would add, I think most businessmen intuitively, if
agree and support the necessity for decentralization. And so
not with great reflection, have a sense of the necessity to try to
we're pretty confident that while there may be frustrations at
create limitations on the federal government because it will im-
this phase, at the end of the Reagan Administration we'll have
pinge on economic and personal liberties through over-regula-
accomplished more by going through this period. The other day
continued on page 8
page 4
Congress Passes
Job Training
Partnership Act
The House and Senate reached final agreement October 1st
and passed the Job Training Partnership Act to replace the
CETA program. The new job training program will deliver an
estimated $3.8 billion in block grant funding to the states for the
purpose of training the chronically unemployed. Administrative
costs and supportive services will be limited to 30% of total ex-
penditure, thus insuring that 70% of the funds go toward actual
training. The Job Training Partnership Act will involve the pri-
vate sector through a Governor-appointed Private Industry
Council in each state. Assistant Secretary of Labor, Al Angri-
sani, said however, that "the Job Training Partnership Act au-
Al Angrisani, Assistant Secretary of Labor, comments on the recently
enacted Job Training Partnership Act: "The new program will give the
thorizes greater power and flexibility to the states, but it will also
unemployed a hand-up instead of a hand-out, and I believe that it will
require strong support at the state level if it is to be successful."
be the means of putting hundreds of thousands of our jobless Americans
Angrisani, along with the Labor Secretary's regional repre-
back to work. I can think of no goal that has higher priority in this coun-
sentatives, is coordinating efforts with ALEC legislators to in-
try today."
sure that the new job training program will be operated effi-
ciently at the state level. "The program is not going to work,"
said Angrisani, "unless it's integrated between the Federal De-
assigned to serve on the Governor's Private Industry Council.
partment of Labor and the State Legislatures." The Administra-
To ensure that the Legislature oversees the Governor's adminis-
tion developed the new legislation with the intent of insuring
tration of the program, State Legislators are named in the Act as
that the State Legislature will participate in the program, that
recipients of review documents.
there is interface between the Department of Labor and the Leg-
The Job Training Partnership Act contains two provisions
islatures, and not simply the Executive branch of state govern-
which require state appropriations, so that the Governor will
ment.
have to receive approval from the Legislature for the programs.
In fact, section 126 of the Act explicitly states: "Nothing in
The state is required to appropriate an 8% matching fund to the
this Act shall be interpreted to preclude the enactment of State
Governor's discretionary educational grants, and a 50% match-
legislation providing for the implementation, consistent with the
ing fund for the dislocated workers program.
provision of this Act, of the programs assisted under this Act."
In summary form, the Job Training Partnership Act will pro-
The Act also requires, for the first time, that State Legislators be
vide the following:
Summary of Job Training
Partnership Act
Provides for a block grant program of funding to the
are limited to 15 percent, except that this limitation is
States. A unit of general local government of 200,000
subject to waiver under certain extraordinary condi-
population or more or a consortium with a population of
tions. Also, 50 percent of the cost of work experience
200,000 or more, upon request to the Governor. shall be
programs, which are subject to restrictive conditions,
constituted a service delivery area. The State acts as
and the cost of tryout employment for youth in conjunc-
prime sponsor for areas not otherwise included in a ser-
tion with an educational program may be paid out of the
vice delivery area.
70 percent set aside for training.
The private industry council is established on a partner-
The bill explicitly prohibits the use of subsidized public
ship level with chief elected officials of units of general
service employment.
local government in the planning and operation of job
training programs in the service delivery area.
A transition period provides for the phasing in of the pri-
The private industry council will be made up of repre-
vate industry councils to a leadership role and the phas-
sentatives from business concerns in the area, who will
ing out of those prime sponsors no longer meeting the
constitute at least 51 percent of the members and who
population requirments for a unit role. These prime
will be appointd by agreement between chief elected of-
sponsors will be eligible to participate in a consortium in
most instances.
ficials in the area. The remaining members of the PIC,
also appointed by the chief elected officials, will be rep-
National programs for Indians and Migrant Workers are
resentatives from educational agencies, organized
continued and a national job training program for Vet-
labor, community based organizations, rehabilitation
erans has been added. The bill provides for summer
agencies, economic development agencies, and the
youth, dislocated workers and older workers programs.
public employment service.
Continuation of the Job Corps is authorized.
In order to maximize the amount of money spent on
Performance standards measure the success of the pro-
training activities, administrative costs are limited to 15
gram in terms of increase in employment and earnings
percent and supportive services, wages and allowances
and reductions in welfare dependency.
page 5
Congress Rejects Balanced Budget Amendment;
Pressure Shifts to States
Using what one GOP Congressman termed "the kind of crafty
sion of the amendment introduced for a vote in the lame-duck
tactics that gives politics a loathesome name," the Democratic
session of Congress which the President has ordered for after the
leadership quickly brought the balanced budget amendment
November elections.
(H.R. Rs. 350) to the floor for a vote before supporters had time
William Shaker, Executive Vice President of the National
to organize their forces. Congressman Mickey Edwards (R-OK)
Tax Limitation Committee, said that the lame-duck session will
and Phil Gramm (D-TX) made a prodigious effort to obtain the
be the "one last shot that Congress has to avoid facing a Con-
additional fourteen votes necessary to have the amendment dis-
stitutional Convention." NTLC lobbied hard to recruit Alaska as
charged from Peter Rodino's (D-NY) House Judiciary Commit-
the 31st State Legislature to pass a resolution calling for a Con-
tee, where the measure has been held up for many months.
stitutional Convention to vote on a balanced-budget/tax limita-
House Majority Leader Tip O'Neill then quickly scheduled a
tion amendment. Only 34 states are needed to require a conven-
vote within twenty-four hours-just shortly before the end of the
tion, and Shaker predicts that 5 to 7 more states will adopt a re-
96th session of Congress. While the measure gained 56% of the
solution in 1983. Kentucky, Missouri and Washington have
vote, it failed to acheive the necessary 2/3 majority.
passed the measure in one House.
President Reagan, who had made a major effort to rally sup-
In 1977, the American Legislative Exchange Council pub-
port for the balanced-budget/tax limitation amendment, ex-
lished a model constitutional convention call in its Source Book
pressed disappointment, but vowed to make the vote count as a
of American State Legislation, and since then 19 state have
campaign issue for the upcoming November elections. Mean-
passed resolutions bringing the total number to 31. (See table
while, supporters are planning to have the Senate-passed ver-
below.)
State Legislatures Which Have Passed Balanced Budget Amendment Applications
State
Measure
Year adopted
Alabama
HJR 227, Act 302
1976.
Alaska
HJR 17
1982.
Arizona
SJR 1002, HCM 2003
1979, 1977.
Arkansas
HJR 1
1979.
Colorado
SJM 1
1978.
Delaware
HCR 36
1975.
Florida
Sen. Memorial No. 234, HM 2801
1976.
Georgia
Res. Act No. 93, HR No. 469-1267
1976.
Idaho
HCR 7
1979.
Indiana
SJR 8
1979.
Iowa
SJR I
1979.
Kansas
SCR 1661
1978.
Louisiana
SCR 4, SR 73, HCR 269
1979, 1978, 1975.
Maryland
SJR 4 (Original), Md JR 77 (Enrolled)
1975.
Mississippi
HCR 51
1975.
Nebraska
LR 106
1976.
Nevada
SJR 8, SJR 2
1979, 1977.
New Hampshire
HCR 8
1979.
New Mexico
SJR 1
1976.
North Carolina
Resolution 5
1979.
North Dakota
SCR 4018
1975.
Oklahoma
HJR 1049
1976.
Oregon
SJ Memorial No. 2
1977.
Pennsylvania
HR 236
1976.
South Carolina
SCR 1024, SCR 670
1978, 1976.
South Dakota
SJR 1
1979.
Tennessee
HJR 22
1977.
Texas
HCR 13, HCR 31
1978, 1977.
Utah
HJR 12
1979.
Virginia
SJR 36
1976.
Wyoming
HJR 12 (Original) JR 1 (Enrolled)
1977.
page 6
Editor's Forum
Nuclear Freeze: Deceptively Simple,
Dangerously Misleading
Voters in nine states will be asked to de-
land-based and submarine-based missiles.
splendid edifice. Technology makes up its
cide on a "nuclear freeze" ballot proposi-
By 1980, they had 1,398 land-based mis-
stones, and its mortar is freedom. Today,
tion this November. While it is laudable in
siles and 1,003 submarine-based missiles.
frightened people are undermining its
our democratic society that citizens par-
Today, they have a total of 2,798 to our
foundations without understanding what
ticipate in the debate over national de-
1,944.
they are doing."
fense, the ballot questions being put to
Last April, then Secretary of State Alex-
The phraseology of the nuclear freeze
voters are deceptively simple and danger-
ander M. Haig delivered a major address
propositions makes them irresistible win-
ously misleading. The Soviet Union out-
to Georgetown University's Center for
ners, but the trouble is that its like voting to
spent the U.S. by $240 billion on military
Strategic and International Studies in
square the circle. Unless the debate is
items during the 1970's. But few voters
which he maintained that a "freeze at cur-
taken out of this simplistic device, the pre-
will consider the fact that a freeze on nu-
rent levels" of overall atomic missile strik-
sent popular pressure for a bilateral,
clear arms production at this time would
ing power "would perpetuate an unstable
negotiated freeze on nuclear arms could,
lock the United States into a position of
and unequal military balance." Haig
as Senator Daniel Patrick Moynihan said,
military inferiority. Furthermore, the
claimed that a freeze now "would reward a
turn into strong, unilateral disarmament
wording of most ballot questions leads
decade of unilateral Soviet buildup and pe-
movement."
voters to believe that a "mutual and verifi-
nalize the United States for a decade of un-
Last Spring, Soviet President Leonid
able" freeze is possible-when, in fact,
ilateral restraint."
Brezhnev took the propoganda initiative
the United States is without the technical
by announcing that his country would dis-
capability of monitoring compliance, and
continue its deployment of missiles aimed
the Soviets reject proposals for on-sight in-
There is no reason to conclude
at Europe and threatened retaliatory meas-
spections.
ures if the U.S. did not stop deployment of
As columnist George F. Will aptly
that the Kremlin is likely to abide
European based Pershing missiles. It is
noted, "Such seductively simple panaceas
by any verification procedures just
commonly known, however, that the
pander to the widespread desire to believe
because voters in Delaware demand
Soviet offer comes only after the Soviets
that there can be an easy, cheap escape
have completed their deployment of SS-20
from the dangers posed by modern physics
a "mutual and verifiable" freeze.
missiles. And even their removal repre-
and the modern Soviet state."
sents no real concession since the SS-20's
There is virtually no one-no one-
are mobile and can easily be maneuvered
who wants a nuclear war. National polls
The freeze organizers working at the
in an emergency call for attack.
have demonstrated that 70% of the Ameri-
state level have placated voter apprehen-
Last November, President Reagan set
can population favors a "mutual and verifi-
sion with the words "mutual and verifi-
forth a serious proposal for Strategic Arms
able" freeze. (The 75% vote in favor of a
able," but a vote in favor of such a promis-
Reduction Talks (START) which call for a
mutual and verifiable freeze in the recent
ing ideal will be very little comfort to those
dismantling of Soviet missiles and cancel-
Wisconsin primary is further confirmation
in Afghanistan and Southeast Asia who are
lation of Pershing deployment, but Mos-
of national sentiment.) But those same
the victims of chemical warfare. There is
cow summarily rejected the opportunity
polls show that Americans are decidedly
now hard, undeniable evidence that the
for a genuine move to reduce the nuclear
opposed to a freeze by the United States
Soviets are using chemical weaponry in
threat, not just stop it in its tracks.
while the Russians continue to amass a
blatant violation of the Geneva Protocol of
On the face of it, there is nothing wrong
stockpile of weapons. Only 12% of the
1925 and the Biological Weapons Con-
with voting in favor of a "mutual and veri-
population favors a unilateral nuclear arms
vention of 1972. Our point is that there is
fiable freeze on the production of nuclear
freeze. In Massachusetts, when the House
no reason to conclude that the Kremlin is
arms by the U.S. and U.S.S.R.," but voters
of Representatives was voting on whether
likely to abide by any verification proce-
should not confuse wishful thinking with
to put the nuclear freeze question on the
dures just because voters in Delaware de-
reality. Their votes would be more effec-
ballot, House Minority Leader William
mand a "mutual and verifiable" freeze.
tive if they were cast in favor of moving
Robinson offered an amendment stating
The Soviets have shown no propensity for
forward with the President's START in-
that no nuclear arms agreement should
enduring international treaties, and they
itiative.
lock the U.S. into an inferior military posi-
are not willing to allow the on-site inspec-
To go one step further, the States should
tion, and the measure died. After recess,
tions necessary to insure compliance. Any
send Washington a clear message that we
the proposition was changed to eliminate
other certain verification is beyond our na-
will accept no treaties which hold the
any reference to military balance, so that
tional technical means.
United States in a position of military in-
Massachusetts voters will not have to think
These are the hard facts which "freeze"
feriority. There are 200 cosponsors of a
about that more difficult question.
supporters should be aware of before they
Congressional House Conference Resolu-
While our spending on strategic forces
cast a naive vote for peace. We note
tion in support of a U.S. national security
has declined dramatically over the last fif-
pioneer nuclear physicist Edward Teller's
policy based on a strategy of "peace
teen years, Soviet spending has increased.
comment that the nuclear freeze is "closely
through strength." Twelve States have al-
During the latter half of the 1970's the
akin to the old slogan 'better red than
ready adopted a resolution memorializing
Soviets deployed four new intercontinen-
dead.' "Few people seem to consider the
Congress to pursue a national strategy of
tal ballistic missiles, the Backfire bomber,
other possibility," says Teller, "-that
peace through strength, and we expect-
and the SS-20 missile. They developed
given their values and beliefs it is very pos-
we hope-to see many more states vote in
four new ICBM's and two missle-carrying
sible to be first red and then dead. Western
support of this much more rational and
submarines. In 1966, the Soviets had 625
civilization," he continued, "has erected a
practical policy.
page 7
Donald H. Rumsfeld to
Williamson Interview
continued from page 4
Chair New ALEC
tion and other things. For all of those reasons, the type of sys-
tematic, organized effective decentralization is very important
Business Policy Board
for the economic and I'd argue, the political health of the coun-
try.
Former Defense Secretary and NATO Ambassador Donald
FR. Certain critics of the President's Federalism initiative
H. Rumsfeld has accepted an invitation to serve as Founding
have charged that the Administration is attempting to use it-in
Chairman of ALEC's new Business Policy Board. A former
a sort of underhanded way-as a vehicle for budgetary savings
Congressman and Chief of Staff during the Ford Administra-
at the federal level. Would you like to respond to this claim?
tion, Rumsfeld comes to the ALEC Business Policy Board as its
Founding Chairman with wide experience in both the public and
R.W. We'd suggest yes and no. No, it' S not a budgetary de-
private sectors. He is currently President and Chief Executive
vice because we will match dollar for dollar-we will return rev-
Officer of G.D. Searle and Co., one of the nation's major phar-
enue sources equivalent to the cost. I think it' important to dis-
maceutical companies.
purse the special interests which have a tendency to demand
ALEC is in the process of forming the new Business Policy
more and more money.
Board, which will consist of ALEC's corporate, foundation and
Part of the overall economic strategy is cutting the size of the
association donors. The Board will work closely with ALEC's
federal government and in that sense it is.
leaders, Board of Directors and staff. The Business Policy
Board will afford ALEC's major donors a more structured way
FR. Another charge that has been made against the New
to participate actively in ALEC's planning and programs.
Federalism is that it will benefit some states more than others,
Among the tentatively scheduled programs to be conducted by
and that only those states which stand to gain under the Presi-
the ALEC Business Policy Board are an ALEC-sponsored
dent's plan will support it. Is their any validity to this claim?
White House Briefing on Business and Federalism, and a spe-
cial "Executive Loan Program" designed to provide state gov-
R.W. That's sort of a green eye shade approach to the New
ernments with advice from managerial experts from the state's
Federalism proposal, budget, where all you look at is ledger
major industries and businesses.
sheets and I'd suggest that's a rather short-sighted approach to
it. But even ceding that, we'd say the benefits I outlined earlier
accrue to all the states, and most importantly, to individual
Americans wherever they live. They will have greater control
over their own lives, greater diversity, better decision-making,
less inefficiency. But to go to the tougher aspect of what you're
alluding to, there are states today that because they have natu-
ral resources, energy states, they have less fiscal constraints
than certain other states. However, that issue does not over-
whelm the question of whether or not you should decentralize.
And so the fact that Texas is an energy-producing state and
therefore has less fiscal pressure than some of the states in the
mature northeastern industrial belt doesn't mean that those
northeastern states are going to be hindered. I think that's a
The Honorable Donald H. Rumsfeld,
bum rap, and is used kind of as a red herring by those people
President and Chief Executive
who want to keep things in Washington.
Officer, G.D. Searle and Co.
ALEC
FIRST CLASS
U.S. Postage
418 C Street. N.E.
PAID
Washington, D.C. 20002
Permit No. 827
Washington, D.C
ALEC OFFICERS
NATIONAL CHAIRMAN
Senator Donald E. Lukens
Ohio
FIRST VICE CHAIRMAN
Representative Edward Holloway
Kentucky
SECOND VICE CHAIRMAN
Representative Penny L. Pullen
Illinois
TREASURER
The Honorable Paul G. Dietrich
Former Member
Missouri Legislature
SECRETARY
Representative John H. Brooks
Idaho
IMMEDIATE PAST CHAIRMAN
Representative T.W. Stivers
Idaho
EXECUTIVE DIRECTOR
Kathleen Teague
ALEC
THE WHITE HOUSE
WASHINGTON
February 24, 1983
TO:
Penny Eastman
FROM: Maiselle Shortley
Per our conversation of this
morning, I have attached the
letters.
Let us know if we can help out
any where along the line.
Talked with
They have a scholule
Puny already 2/24
ALEC
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E.
Washington, D.C. 20002
(202) 547-4646
ALEC OFFICERS AND
BOARD OF DIRECTORS
December 27, 1982
NATIONAL CHAIRMAN
Senator Donald E. Lukens
Ohio
FIRST VICE CHAIRMAN
Mr. Morton Blackwell
Representative Edward Holloway
Kentucky
Office of Public Liaison
SECOND VICE CHAIRMAN
Representative Penny L. Pullen
The White House
Illinois
Washington, D.C. 20500
TREASURER
The Honorable Paul G. Dietrich
Former Member
Dear Morton:
Missouri Legislature
SECRETARY
Representative John H. Brooks
Idaho
Two months ago when we had the pleasure of lunching with Ed
IMMEDIATE PAST CHAIRMAN
Meese and other mutual friends, I gave Ed a letter (copy enclosed)
Representative T.W. Stivers
Idaho
requesting President Reagan to speak at a "Salute to ALEC: The
Senator Wray E. Bradley
Second Decade" dinner either April 5, 6, 7, or 8th.
Alaska
Representative Roy F. Cagle
Missouri
We are anxious to receive a reply and hope you can please help
The Honorable Brad Cates
Former Member
us. Thank you, Morton, for your past assistance and may you and
New Mexico Legislature
Representative William Ceverha
yours have a most happy and blessed Holiday Season.
Texas
Representative DavidY. Copeland
Tennessee
With warm regards,
Senator Owen Johnson
New York
Senator John R. McCune
Oklahoma
Senator Robert B Monier
Kathy
Senate Pres
:
New Hampsh
Kathleen Teague
Assemblyman Patrick J. Non
California
Executive Director
Representative William M. Polk
Speaker of the House
Washington S!
KT/ds
The Honorable Larry Pratt
Former Member
Virginia Legislature
Enclosure
Senstor Norma C. RUSSE :
South Carolina
Representative Jerry Sandel
New Mexico
Senator Eva F. Scott
Virginia
Senator Ray A. Taylor
Iowa
Senator Donald L. Totlen
Illinois
A non-profit, non-partisan, tax-exempt organization serving State Legislators and Members of Congress
ALEC
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
Comminee
418 C Street. N.E.
Washington, D.C. 20002
(202) 547-4646
October 28, 1982
Mr. Edwin Meese III
Counsellor to the President
The White House
Washington, D.C. 20500
Dear Ed:
During 1983, ALEC will celebrate the 10th Anniversary of its
founding and will mark the occasion with a "Salute to ALEC: The
Second Decade" Dinner here in Washington, D.C. in April.
The dinner will be a major event with attendance expected to
be 800 to 1,000 people. A Salute to ALEC Dinner Committee is now
being formed and will include supporters and friends of ALEC in the
Reagan Administration, Congress, the States and the corporate community.
We would be honored to have our "Old Partner in the New
Federalism," President Reagan, deliver the main address at the dinner.
The dates we are considering are Tuesday, April 5, or April 6, 7, or
8th. Easter is Sunday, April 4. Congress reconvenes on Tuesday,
April 5 and the Cherry Blossom Festival is April 4 through April 9.
We think this time is perfect to achieve maximum attendance and
participation by state lawmakers, too, since many state legislative
sessions will be adjourned or recessed then.
Far
Committee
This major address to an audience including state government
corporate representatives and state leaders would be an excellent
opportunity for the President to highlight his New Federalism legislative
package, which we assume will be pending before Congress then.
Ed, would you please assist us by presenting this invitation to
the President and urging his favorable response. We would like to
set a definite date as soon as possible and will await your reply.
Sincerely,
Kathy Trague
Kathleen Teague
Executive Director
KT/ds
Enclosure
ALEC's 1982 World's Fair Annual Meeting
Choo Choo Hilton, Chattanooga, Tennessee
June 16-20, 1982
ALEC
File
AMERICAN LEGISLATIVE EXCHANGE COUNCIL
418 C Street, N.E.
Washington, D.C. 20002
(202)547-4646
ALEC OFFICERS AND
BOARD OF DIRECTORS
December 21, 1982
NATIONAL CHAIRMAN
Senator Donald E. Lukens
Ohio
FIRST VICE CHAIRMAN
Representative Edward Holloway
Kentucky
SECOND VICE CHAIRMAN
Representative Penny L. Pullen
Mr. Morton Blackwell
Illinois
The White House
TREASURER
The Honorable Paul G. Dietrich
Office of Public Liaison
Former Member
Missouri Legislature
Washington, D.C. 20500
SECRETARY
Representative John H. Brooks
Idaho
Dear Morton:
IMMEDIATE PAST CHAIRMAN
Representative T.W. Stivers
Idaho
Would you please be kind enough to request a birthday greeting
Senator Wray E. Bradley
from President Reagan for the mother of one of my dear friends. The
Alaska
Representative Roy F. Cagle
lady celebrating her 76th birthday, which is on January 27th, is:
Missouri
The Honorable Brad Cates
Former Member
Mrs. Eva M. Kasper
New Mexico Legislature
8404 A Nunley Drive
Representative William Ceverha
Texas
Baltimore, MD 21234
Representative DavidY. Copeland
Tennessee
Senator Owen Johnson
Thank you so much, Morton, for your help.
New York
Senator John R. McCune
Oklahoma
Sincerley,
Senator Robert B. Monier
Senate President
New Hampshire
Assemblyman Patrick J. Nolan
California
Representative William M. Polk
Speaker of the House
Kathleen Kathy Teague
Washington State
The Honorable Larry Pratt
Executive Director
Former Member
Virginia Legislature
Senator Norma C. Russell
South Carolina
KT/ds
Representative Jerry Sandel
New Mexico
Senator Eva F. Scott
Virginia
Senator Ray A. Taylor
Iowa
They start Do via
Senator Donald L. Totten
Illinois
not tell Kaths
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