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Press Releases - June 1973
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Press Releases - June 1973
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Reagan, Ronald: Gubernatorial Papers,
1966-74: Press Unit
Folder Title: Press Releases - June 1973
Box: P14
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/
OFFICE OF GOVERNOR RC ALD REAGAN
RELEASE:
Immediate
Sacramento, Californi
95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#295
Governor Ronald Reagan today announced the following bills have
been signed:
AB 81 - Duffy
Requires the Department of Mental Hygiene to
Chapter 70
participate with the City of Porterville in the
construction of interceptor sewer facilities for
Porterville State Hospital and provides for the
state to expend from any available funds 20 percent
of the construction bid or $60,000 whichever is less
for such purposes.
AB 151 - Lancaster
Authorizes the Director of General Services, with
Chapter 68
the approval of the Department of Mental Hygiene and
the State Public Works Board, to convey approximately
6.8 acres of land at Pacific State Hospital to the
City of Pomona for use as a fire station.
AB 249 - Warren
Makes nonsubstantive amendments to the Food and
Chapter 71
Agricultural, Public Resources, and Water Codes.
AB 455 - Lanterman
Revises the requirements regarding advertisements,
Chapter 73
brochures, and manuals for 1974 or later model year
gasoline-powered motor vehicles which contain any
reference to the vehicle's horsepower.
AB 562 - Warren
Clarifies legislative intent that allowances for a
Chapter 74
specified dropout prevention program based upon a
furlough plan be made from the State School Fund.
SB 207 - Schrade
Exempts from property taxation the possessory interest
Chapter 72
which a nonprofit zoological society has in publicly
owned land while operating a ZOO or horticultural
display.
SB 251 - Nejedly
Makes technicalamendments to legislation enacted in
Chapter 69
1972 which increased the membership of retirement
boards in counties included under the County
Employees' Retirement Law of 1937.
# # # #
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
mediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#296
Governor Ronald Reagan today announced the appointments of three
Superior Court and two Municipal Court judges in Los Angeles.
Named to the Superior Court Bench were Municipal Court Judges
Thomas T. Johnson of Pacific Palisades, Albert D. Matthews of Compton and
Robert H. London of Encino.
Johnson, a 50 year old Democrat, was appointed to his Municipal
Court post in 1971 by Governor Reagan. He succeeds Superior Court Judge
Edward Brand, who has retired. A native of Louisville, Kentucky, he
received a degree in mechanical engineering in 1946 and his law degree in
1949, both from the University of Louisville. He has practiced law in
Los Angeles since 1959. He and his wife Marianne have two minor children.
Matthew, 50, who was appointed Municipal Court judge of the Compton
Judicial District in 1968 by Governor Reagan, is a Republican. He succeeds
Superior Court Judge Joseph Call, who has retired. Matthews received his
undergraduate training and law degree from Howard University in Washington,
D.C. He graduated from the University's law school in 1954 with honors.
He and his wife Mildred have a daughter, age nine.
London, 40, who declines to state his political affiliation, was
uppointed to the Municipal Court bench in Los Angeles Judicial District
in Van Nuys by Governor Reagan in 1971. He succeeds Superior Court Judge
Charles Stratton, who has retired. London, who was born in Brookings,
South Dakota, is an honor graduate of the University of California at
Los Angeles with a B.A. Degree in political science. He received his law
degree from the University of Southern California in 1958, graduating in
the top 15 percent of his class. He and his wife Ruthe have two children.
The three new Superior Court judges will receive an annual salary
of $36,393.
Named to the Municipal Court bench in the Los Angeles Judicial
District were Brian D. Crahan, chief deputy city attorney for Los Angeles,
and Lawrence C. Waddington, assistant attorney general and former deputy
district attorney of Los Angeles County, who lives in Santa Monica.
Crahan, 38 year old Republican, is a native of Los Angeles. He
succeeds Judge Johnson. He is a 1957 graduate of Pomona College and
received his law degree from UCLA in 1961. He has been a member of the
City Attorney's office since 1961. He and his wife Michele have a minor
daughter.
Waddington, 42, a Republican, succeeds Judge London. He is a 1953
raduate of Colorado College, Colorado Springs, Colorado, and received his
aw degree in 1956 from UCLA. He was a deputy district attorney of Los
ngeles County from 1958-70. He and his wife Jennie have four minor
hildren.
Crahan and Waddington will receive $33,481 yearly salaries.
#########
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE
Immediate
Sacramento, Californ 95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#297
Governor Ronald Reagan today announced the appointment of
Ernest L. Casares, a San Diego dentist, to the Board of Dental
Examiners in the Department of Consumer Affairs.
Dr. Casares, a 56-year-old Republican, fills the vacancy created
by the resignation of Dr. Philip H. Pope of San Bernardino.
A graduate of San Diego State College in 1939, Dr. Casares received
his dental degree in 1943 from the University of Southern California.
In addition to his private practice in San Diego, Dr. Casares is an
instructor in operative dentistry at USC. He is a former president of
the San Diego County Dental Society, former chairman of the San Diego
Children's Dental Health Center, and former president of the San Diego
chapter of the Academy of General Dentistry.
Dr. Casares and his wife Wilma have two children.
Board members receive $28 a day per diem when on official duty.
######
Address:
Ernest L. Casares, D.D.S.
3702 Park Boulevard
San Diego, California 92103
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
mmediate
Sacramento, Californ. 95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#298
Governor Ronald Reagan today announced the appointment of
James L. Dumas of Chowchilla to the board of directors of the 21a
District Agricultural Association, sponsor of the Madera District Fair.
Governor Reagan also announced the reappointments to four-year terms
of Eugene R. Trombley of Novato and Stanley W. McDonald of Petaluma as
members of the 4th District Agricultural Association, sponsor of the
Sonoma-Marin District Fair.
Dumas, a 56-year-old Republican, fills the vacancy created by the
resignation of Joe D. Law of Chowchilla. His term will expire
January 15, 1974. A native of Judsonia, Arkansas, he attended Harding
College in Searcy, Arkansas, and Arkansas State Teachers College,
Conway, Arkansas. Former rice farmer, he is a Chowchilla businessman
Trombley, 66, has been a member of the 4th District board since
1969. A Novato businessman, Trombley is a Republican. He is a member
of the Marin County Planning Commission, and a former chairman of the
Marin County Airport Commission.
McDonald, 52-year-old Republican, has served the board since 1971.
The asistant vice president of the Bank of Marin, McDonald is a member
of the Wilson School Board of Governors, the Petaluma Chamber of Commerce,
and is a director of the 4-H Dairy Heifer Placement Program.
Board members are paid their necessary expenses.
######
Addresses:
Jim Dumas
Eugene R. Trombley
373 Circle Drive
1631 Ignacio Boulevard
Chowchilla 93610
Novato 94947
Stanley W. McDonald
1000 Chileno Valley Drive
Petaluma 94952
Walthall
OFFICE OF GOVERNOR F ALD REAGAN
MEMO TO 1
L-
PRESS
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#299
GOVERNOR'S SCHEDULE
June 4, 1973
through
June 10, 1973
Monday, June 4
through
National Governors' Conference, Lake Tahoe,
Wednesday, June 6
Nevada.
Overnight - Sacramento
Thursday, June 7
No public appointments scheduled.
Overnight - Los Angeles
Friday, June 8
Noon
Goodwill Industries Luncheon, Biltmore Bowl,
Biltmore Hotel, Los Angeles. Speech.
Overnight - LOS
Saturday, June 9
4:00 p.m.
Mount St. Mary's College Commencement,
Mount St. Mary's College, Los Angeles.
Overnight - Los Angeles
Sunday, June 10
No appointments scheduled.
Overnight - Los Angeles
######
Gray
OFFICE OF GOVERNOR RO ALD REAGAN
RELEASE:
mediate
Sacramento, Californ. 95814
Ed Gray, Press Secretary
916-445-4571
6-1-73
#300
Governor Ronald Reagan today announced he has vetoed the following
bill:
AB 368 - Brown
Would generally prohibit school districts from
administering tests, or using individual scores
from tests, which measure or attempt to measure
the scholastic aptitude of pupils.
REASON FOR VETO:
"I would be sympathetic to legislation aimed at
eliminating possibilities for misinterpretation
of the meaning of aptitude test scores. This
should be done by requiring that administration and
interpretation of tests---group or individual-- be
done by or under the close supervision of
appropriately qualified persons. Qualified persons
do not make final judgments regarding a child's
ability on one test alone. They are aware of the
margin of error for any specific test. They know
the degree of appropriateness of a specific test
for use with individuals of varying backgrounds.
"The language of AB 368 kills aptitude testing
rather than preventing its misuse. It provides
that, 'No school district may administer in
connection with the statewide testing program, or
otherwise, any group standardized test, or any other
test, which measures or attempts to measure the
scholastic aptitude of a pupil to any pupil or
group of pupils in the district.' This restriction
is too broad and removes from local school boards
the right to utilize a valuable testing procedue.
"I note that AB 368 accepts aptitude tests as part
of psychological evaluation. They are accepted
for placement in postsecondary education and to
determine scholarship eligibility. Tests useful
for these purposes are too valuable---whether used
in a group or individual setting--- to eliminate.
"Accordingly, I am returning the bill unsigned."
Governor Reagan today also announced he has signed the following
bill:
SB 112 - Rodda
Prohibits experimentation on live vertebrate
Chapter 76
animals in the state's public elementary and
high schools.
Upon signing the bill the governor made the following statement:
"It is with some uneasiness that I sign SB 112.
I was surprised to find only one letter of opposi-
tion from educators in the State of California
only one letter in a state with 1100 school
districts and 221 accredited postsecondary
institutions. I was surprised because of the
possible loss of valueable laboratory experience
for students who will go on to study biology and
medical and veterinary science in college. If
educational damage should result, I will propose
corrective legislation.
#####
Walthall
The following was provided to governors and press at the National Governor's
Conference at Lake Tahc
June 4, 1973:
GOVERNOR REAGAN'S
PROPOSED CALIFORNIA STATE CONSTITUTIONAL AMENDMENT
FOR REVENUE CONTROL AND TAX REDUCTION
SUMMARY OF PROVISIONS
1. Will provide a rebate of up to 20 percent on state income taxes paid during
calendar 1974 (This rebate will derive from the one-time current state
surplus which is estimated to total from $800-850 million at the end of
fiscal 1972-73. The surplus was made possible by major reforms in
California's welfare and Medi-Cal programs, and an upturn in the state's
economy.)
2. Will provide a 7 1/2 percent ongoing state income tax cut beginning Jan. 1,
1974 and thereafter.
3. Will constitutionally limit and gradually reduce the percentage of total
personal income in California which the state can take in taxes during the
next 15 years. The state now takes approximately 8.75 percent of California's
total personal income in taxes and fees. The limit will gradually reduce, by
one tenth of one percent per year, the percentage of total personal income
which the state can take from the people, until it reaches about 7.15 percent
in 1989.
4. The tax revenue limitation will provide adequate safeguards to assure that
the state can cope with emergencies, natural disasters and recessions should
they occur in the years ahead.
To meet such unanticipated emergency situations, the legislature will be
authorized to create an emergency fund of up to two-tenths of one percent
of the total personal income of the state. In the event of such an emergency,
as declared by the governor, the emergency fund may be appropriated to meet
such needs, and in the event the emergency fund proves insufficient, the
tax surplus fund may be utilized, or a special tax may be imposed by the
legislature and the governor for a period not to exceed two years. Continua-
tion of that tax, beyond the period of up to two years must be authorized
by a majority vote of the people, at a statewide election.
5. The proposed constitutional amendment will prevent the state from shifting
costs to local government for state mandated programs. It requires that
"no new programs or increase in the level of service under an existing
program shall be mandated to local entities or to school districts by the
state until an appropriation has been made to pay to the local entities
or school districts the cost of the mandated program or service."
6. The proposal also requires that "if the legislature enacts a specific
property tax relief measure funded by state tax revenues or if, by
order of any court, the costs of the program are transferred from local
entities or school districts to the state, the state tax revenue limit
may be increased, provided the maximum property tax rates of affected local
entities, or the then existing tax rate of affected school districts, are
commensurately decreased."
- 2 -
7. The proposal sets the "maximum property tax rates of each local entity" at
those rates "levied for fiscal year 1971-72 or for fiscal 1972-73, which-
ever is higher. If
8. The proposal will enable the legislature to alter the, state's tax structure as
it may see fit in the years ahead so long as the overall tax structure remains
below the revenue limit in any given year.
9. The proposal will abolish the state income tax in the future for any family
earning less than $8000 per year (adjusted gross income) and for any individual
with an adjusted gross income of less than $4000 per year.
10. Governor Reagan's proposal will provide a cumulative tax savings to the people
of California of $118 billion during the next 15 years, even though the limit
will enable California's state budget to triple during the same period of time.
11. The proposal will provide an estimated $41.5 billion to pay for new programs
not now in existence during the next 15 years - above and beyond meeting
the fiscal requirements of current programs, including allowance for inflation
and growth during the same period.
12. Without the tax revenue limit, it is estimated that the state budget will
quintuple by 1989, reaching $47 billion in that year. With the limit in effect,
the budget will be held to $27 billion in 1989.
13. Projections based on past experience show that the state will increase its share
of state revenues from the current 8.75 percent up to 12.25 percent of California's
total personal income in 1989, if a limit is not written into the state constitu-
tion by the people. On the other hand, the tax revenue limit proposed by
Governor Reagan will enable the percentage to decrease to 7.15 percent in 1989.
14. Governor Reagan proposed the Constitutional Amendment to the California legislature
several months ago. But, the legislative leadership has made it clear that it will
not permit the amendment to go to a vote of the people. (The legislature in
California can place state constitutional amendments on the ballot for a
vote of the people by a two thirds vote of each house). For this reason, an
effort to place the proposal before a vote of the people by means of the initia-
tive process is now underway. Petitions are now being circulated throughout
California. Some 520,000 valid signatures are required. If the needed
signatures are gathered and filed a special statewide election will be called by
the governor so the people can decide the issue for themselves later this year.
Gray
OFFICE OF GOVERNOR RC LD REAGAN
RELEASE:
mmediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-6-73
#301
Acting Governor Ed Reinecke today announced that the following
bills have been signed:
AB 520 - Warren
Makes nonsubstantive amendments to the Business
Chapter 77
and Professions, Financial, Insurance, Labor,
Unemployment Insurance, and Welfare and Institutions
Codes.
AB 561 - Warren
Makes nonsubstantive amendments to the Public
Chapter 78
Utilities, Revenue and Taxation, and Vehicle Codes.
######
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
Immediate
Sacramento, Californ. 95814
Ed Gray, Press Secretary
916-445-4571
6-7-73
#302
As a result of the heavy smog conditions in Los Angeles, Orange,
San Bernardino and Riverside Counties, Governor Ronald Reagan today
issued the following statement :
"Because of the climatic temperature inversion that has persisted
in the Los Angeles Air Basin for the past three days, with no immediate
change in sight, serious air pollution levels have been reached which
require cooperation of all citizens in the area to avoid a more extreme
situation.
"Therefore, I am urging all citizens and agencies in the area to
restrict their use of motor vehicles from all but the most pressing and
necessary demands.
"I have also directed all state agencies to minimize to the greatest
extent possible the use of state cars in Los Angeles, Orange, San
Bernardino, and Riverside Counties while the present condition exists.
"I am also urging all citizens in the area to curtail their outside
burning activities.
"I cannot overemphasize the need for areawide cooperation in
helping to abate this hazard before it becomes crucial."
Governor Reagan also noted the state Air Resources Board and the
Office of Emergency Services, along with the Federal Environmental
Protection Agency and local air pollution control districts are closely
monitoring smog conditions in the air basin and taking all available
actions to reduce the danger.
######
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi
95814
Ed Gray, Press Secret 4Y
916-445-4571
6-7-73
#303
Governor Ronald Reagan today announced the appointment of
Arbuckle farmer Willard E. Stetson to the 44th District Agricultural
Association board of directors. The association operates the Colusa
County Fair.
Stetson, 60, a Republican, replaces Stanley Atran, whose term
has expired. He is a retired Colusa County Supervisor and now serves
as fire commissioner for the Arbuckle College City Fire District. He
is also a member of the board of directors of the Coluga County Chamber
of Commerce. He is married and has one grown daughter.
Board members serve four year terms and receive necessary expenses.
#####
Address:
Willard E. Stetson
R.F.D. Box 104
Arbuckle, California
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-7-73
#304
Governor Ronald Reagan today announced the reappointments of
John J. Manassero of Sutter Creek and Harold E. Colburn of Plymouth,
and the appointment of Janice T. Howard of Plymouth to the 26th District
Agricultural Association board of directors. The association operates
the Amador County Fair.
Both Manassero and Colburn have served on the board since May
2, 1949. Their current terms will expire January 15, 1977. Mrs.
Howard will fill the unexpired term of Lucian Vaira, of Drytown, who
resigned. The term extends to January 15, 1975.
Manassero, 64, a Democrat, is a native of Sutter Creek and is a
former member of the advisory board of Bank of America. He operates
a local insurance business.
Colburn, 65, a Democrat, has served as board president for many
years. He owns and operates drug stores in Plymouth and Ione.
Mrs. Howard, who has been associated with the fair since the
age of 15, is active in cattle ranching. She is a Democrat.
Board members receive necessary expenses.
####
Addresses:
John J. Manassero
Janice T. Howard
Post Office Box 575
Route 1, Box 18
Sutter Creek, California 95685
Plymouth, California 95669
Harold E. Colburn
Box 126
Plymouth, California 95669
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-7-73
#305
Governor Ronald Reagan today announced the reappointments of
Gene C. Harris, of Richvale, and G.W. (Jock) Roney, of Chico, to the
3rd District Agricultural Association Board of Directors. The
association operates the Silver Dollar Fair in Butte County.
Harris, 44, a Republican, has served on the board since
March 3, 1969. He is manager of the family firm of Harris & Harris
which operates some 2,500 acres, much of it in rice, in the Richvale
area. He is a director of the California Farm Bureau and the Richvale
Flying Farmers.
Roney, 77, a Democrat, has served on the board since September
3, 1958. He is a retired farmer.
Board members serve four year terms and receive necessary
expenses.
######
Gene C. Harris
Post Office Box 273
Richvale, California 95974
G. W. (Jock) Roney
Route 1, Box 464
Chico, California 95926
Garcia
OFFICE OF GOVERNOR R( LD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-7-73
#306
Governor Ronald Reagan today announced the appointments of Edwin
R. McCauley of Salinas, and Loren W. Enoch of Oakland to the Commission
on Peace Officer Standards and Training. The appointments require
Senate confirmation.
McCauley, 55, a Democrat, is Monterey County Administrative
officer. He replaces Fred J. Morey, Jr., of Del Mar, whose term
expired. A 1941 graduate of the University of Southern Califom ia,
he is married and has three children. His appointment will expire
September 18, 1975.
Enoch, a 53-year-old Republican, replaces Earl R. Strathman, of
Hayward, who resigned. His term will expire September 18, 1973. A
graduate of the University of Southern California, he is presently
Alameda County administrative officer. From 1961 to 1972, he was
Ventura County executive officer. He is married and has two sons.
Commission members receive necessary expenses.
######
Edwin R. I cCauley
1014 Crespi Way
Salinas, California
Loren W. Enoch
5727 Balboa Drive
Oakland, California
Garcia
OFFICE OF GOVERNOR RO LD REAGAN
RELEASE:
Immediate
Sacramento, Californi. 95814
Ed Gray, Press Secretary
916-445-4571
6-8-73
#307
Governor Ronald Reagan today announced appointments to the nine-
member Speech Pathology and Audiology Examining Committee, which was
created during the 1972 legislative session.
The bill, SB 796, introduced by Senator James E. Whetmore
(R-Buena Park) provides for the licensing of speech pathologists and
audiologists by the committee, and places it under the jurisdiction of
the Board of Medical Examiners.
Named to the committee were:
Katharine G. Butler, Ph.D., director of the Speech and Hearing
Center and professor of speech pathology and audiology, California State
University at San Jose;
A. Chris Hagen, Ph.D., chief, Communication Disorders Service,
Division of Neurological Sciences, Rancho Los Amigos Hospital, at Downey;
Esther L. Herbert, supervisor, Speech and Hearing Special Education
Division, Los Angeles Unified School District;
Richard M. Flower, Ph.D., professor of speech and audiology and vice
chairman, Department of Otolaryngology, University of California, San
Francisco.
Donald A. Belt, director, audiology and speech pathology, Sunnyvale
Medical Clinic;
Henry D. Schmitz, Ph.D., director of audiology, Redlands Medical
Clinic;
Mansfield F. W. Smith, M.D., associate clinical professor, Stanford
University Medical Center, and associate chief, Division of Otolaryngology,
Santa Clara Valley Medical Center, San Jose.
Jacquelyn W. Green, teacher, Spanish Department, San Francisco City
College;
Charles K. Paskerian, Jr., president, Flexi-Pac, Inc., Santa Ana.
The law provides that committee members shall, by lot, classify
themselves so the terms of three members expire Jun 1, 1974; three members,
June 1, 1975, and the remaining three members' terms expire Junel, 1976.
Thereafter, all appointees will receive four year terms. No member,
however, may serve more than two consecutive terms.
Members receive $28 a day per diem and their necessary expenses.
# # # # #
Walthall
Butler, 21400 Arrowhead Lane, Cupertino 95014; Hagen, 548 Mondo Drive,
La Habra 90631; Herbert, 8001 Vicksburg Ave., Los Angeles 90045; Flower,
34 Seventh Avenue, San Francisco 94118; Belt, 186 Alameda de Las Pulgas,
Atherton 94025; Schmitz, 1630 Henrietta, Redlands 92373; Smith, 20021
Bella Vista Ave., Saratoga; Green, 984 Flying Fish, Foster City 94404;
Paskerian, 2422 North Fairmont, Santa Ana 92706.
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-8-73
#308
Governor Ronald Reagan today called a special election for
September 4, 1973 to fill the 14th Assembly District seat of the late
Assemblyman Robert W. Crown of Alameda.
Crown died of injuries suffered May 20 when struck by an
automobile while jogging in Alameda.
The primary election will be held August 7. The September 4
election will be held if no candidate receives more than 50 percent of
the primary vote.
#####
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-8-73
#309
Governor Ronald Reagan today filled two vacancies on the
California Regional Water Quality Control Board.
Appointed to four-year terms were, John C. Mabee of San Diego,
named to the Board's San Diego Region; and, Peter M. Tripp of Oakland,
who was appointed to the Board's San Francisco Bay Region. Both are
Republicans.
Mabee, 51, fills the vacancy created by the resignation of
Cornelius J. Johnson of San Marcos. A former part owner of the San Diego
Chargers professional football team, Mabee is a member of the San Diego
County Environmental Advisory Board. He is the founder and president
of the Big Bear Markets.
Tripp, 62, replaces Anthony R. Turturici of San Jose. Turturici
has resigned. The senior member of the Oakland Board of Port
Commissioners, Tripp has served three terms as Commission president.
He is the owner of the Peter Tripp Insurance Agency.
He is a former vice mayor and member of the Oakland City Council.
Board members receive their necessary expenses when on official
business.
#####
Addresses:
John C. Mabee
Peter M. Tripp
4545 Yerba Santa Drive
5878 Moraga Avenue
San Diego 92115
Oakland 94611
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-8-73
#310
Governor Ronald Reagan today announced the appointment of
Mrs. Daniel F. (Elizabeth) Deedy of Ross as a member of the Board of
Governors of California Community Colleges, and reappointed two members.
Reappointed to four-year terms were King E. Durkee of San Diego,
and William A. Dillard of Brawley. They are Republicans.
All three appointments require two-thirds consent of the state
Senate.
Mrs. Deedy is a former member and four term president of the Marin
Junior College District. She replaces Herbert T. Stroschein, D.D.S.,
of Santa Ana. Stroschein resigned and his term has expired.
She served five years and was twice elected president of the board
of the Mill Valley Elementary School District, and twice elected chairman
of the junior college section and statewide chairman of the Junior
College Trustees of the California School Boards Association.
Mrs. Deedy, a Republican, is a graduate of Queens College, Charlotte,
North Carolina, and received her Masters Degree in psychology from the
University of Pennsylvania in Philadelphia. She was assistant to the
dean of women and director of residents at the University of Pennsylvania
from 1936-40.
Durkee, 54, director of education for the Copley Press, was first
appointed to the Board by Governor Reagan July 14, 1970. He has served
as executive editor, managing editor and executive news editor of the
San Diego Union. He also has been active in the American Newspaper
Publishers Association, the Graduate Department of Journalism at the
University of California at Los Angeles, the Pacific Forum, the Bayside
Settlement House, Sigma Delta Chi, the Association for Education in
Journalism and the San Diego Symphony. He has also been a journalism
instructor at San Diego State College and the University of Utah.
Dillard, 53, an Imperial County farmer, is a past president of the
Board of Trustees of the Brawley School District, and was a three-term
president of the Imperial County School Boards Association. He was
first appointed to the Board in 1968 by Governor Reagan.
Board members receive their necessary expenses.
######
Addresses:
Walthall
King E. Durkee
Elizabeth M. Deedy
William A. Dillard
2435 Soderblum Avenue
One Garden Road
480 South Rio Vista
San Diego 92122
Ross 94957
Brawley, California
OFFICE OF GOVERNOR ROWALD REAGAN
RELEASE.
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-8-73
#311
Governor Ronald Reagan today announced the following bills have
been signed:
AB 89 - Bagley
Continues the increase from $80 to $120 per month
Chapter 75
after June 1, 1973, in the maximum amount payable
for each child under foster care programs. The
bill also eliminates the requirement that counties
be reimbursed on a quarterly basis in arrears on
certain increases in aid grants made by the 1972
legislature.
AB 413 - Lewis
Specifies that a candidate for a nonpartisan offic
Chapter 79
at a primary election who receives a majority vote
is elected, and that where two or more candidates
are to be elected to a nonpartisan office and a
greater number of candidates receive a majority
than the number to be elected, those candidates
shall be elected who secure the highest votes of
those receiving such majority, and equal in number
to the number to be elected. The bill restores
language formerly found in Article II, Section
2-3/4 of the Constitution. That section was
repealed by Proposition 7.
AB 915 - MacDonald
Provides that the children's treatment center
Chapter 80
at Camarillo State Hospital shall be known as the
Norbert I. Rieger Children's Treatment Center.
#####
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
Sacramento, Californ
95814
MEMO TO T
PRESS
Ed Gray, Press Secretary
916-445-4571
6-8-73
#312
GOVERNOR'S SCHEDULE
June 11, 1973
through
June 17, 1973
Monday, June 11
No public appointments scheduled
Overnight - Sacramento
Tuesday, June 12
Noon
CSEA Institute on Government, Woodlake Inn.
Remarks.
4:30 p.m.
Presentation by Sacramento Chapter, Sons of the
American Revolution, of flags in honor of Flag Day,
governor's office.
Overnight - Sacramento
Wednesday, June 13
Noon
Contra Cost Taxpayers' Association Luncheon,
Boundary Oak Restaurant, Walnut Creek. Speech.
7:00 p.m.
JFK High School Graduation, Tak Fudenna Stadium,
Fremont. Speech.
Overnight - Sacramento
Thursday, June 14
Noon
Flag Day Ceremony, West Steps of Capitol, sponsored
by the Sacramento United Committee for Flag Day.
Overnight - San Francisco
Friday, June 15
a.m.
Meeting of the University of California Board of
Regents, University Extension Center, San Francisco.
6:00 p.m.
Reopening of the old San Francisco Mint, 5th and
Mission Streets, with Mrs. Mary Brooks, Director
of the United States Mint.
Overnight - Los Angeles
Saturday, June 16
No public appointments scheduled
Overnight - Los Angeles
Sunday, June 17
No public appointments scheduled
Overnight - Los Angeles
# # # # #
Gray
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-12-73
#313
Governor Ronald Reagan today released the text of a recent letter
to Assemblyman Robert G. Beverly pertaining to reapportionment:
"Since it is my understanding that you, Assemblyman Murphy, and
others among the Republicans in the Assembly, wish to have a more
specific indication of my views on AB 164, as it has been represented,
I have prepared a list of districts which seem to be most contrived and
in which compactness and community of interest are lost.
"I know you have stated that incumbency is a valid consideration.
It is true that incumbency cannot help but be considered when those
affected set the lines. But while that is true, it is also true that
the people whom we all serve should have consideration. To utterly
destroy community interest to gain partisan advantages in even one
district is wrong, obviously.
"I had hoped that a suitable compromise between incumbency and
community considerations might be reached. Thus far, at least 18
districts in AB 164 remain outside that formula. They are as follows:
1. 2nd A.D. - a long finger reaches up the coast to include Eurek
2.
9th A.D. - takes parts of 3 counties.
3. 18th A.D. and 19th A.D. - these districts are contrived for no
valid reason and are a gross example of unnecessary gerrymandering.
4. 23rd A.D. - Reaching from the borders of Orange County, through
San Bernardino County, through Kern County to San Luis Obispo and Santa
Barbara Counties.
5. 26th A.D. and 27th A.D. - a long appendage reaches southeast
along the major highway of the area.
6. 29th A.D. - runs through 5 counties from Taft to San Jose.
7. 33rd A.D. - this district includes mountain and valley areas
which result in an odd configuration.
8. The map for Los Angeles is so incongruous as to make it
difficult to comment on individual districts. However, the 49th A.D.
will serve as an example. The district loops around the 50th A.D. with
only a narrow corridor linking the major sections of the district.
9. 58th A.D. - runs from Oceanside to Garden Grove.
10. 61st A.D. - runs from Playa del Rey to Hollywood.
11. 67th A.D. - runs from Anaheim to Lake Elsinore and the San
Diego County line.
12. 69th A.D. - possibly the worst example of deliberate gerry-
mandering in political history, having a distorting effect on surrounding
districts.
13. 76th, 78th, 79th, and 80th A.D.s - these San Diego County
districts are all examples of the art of gerrymander and cannot be
justified on rational grounds. The City of La Mesa with less than
40,000 population has been divided among the above four districts.
"If it is possible to resolve the district problems outlined above,
I believe the chances of court approval of legislative reapportionment
would be improved. As you continue your negotiations with the majority
party in the Assembly, you and all other Republican members have my
assurance that I will stand with you to prevent the gross and
indefensible gerrymander of Assembly districts. We are joined in this
stand by our party, by the cities, counties, and communities affected,
by newspapers and broadcasting stations throughout California, and by
the public."
#####
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE
Immediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-12-73
#314
Governor Ronald Reagan today announced he has lifted the restriction
on use of state cars which he ordered last week in Los Angeles, Orange,
Riverside and San Bernardino Counties because of severe smog conditions.
"Although high pollution readings in Riverside and San Bernardino
Counties have passed, Governor Reagan said, "there is a long, hot
summer ahead. I urge all citizens in the South Coast Air Basin to think
of their neighbors throughout the area and avoid making unnecessary
automobile trips.
"During last week's alert, smog levels remained below the danger
point in Los Angeles and Orange Counties. However, the heavy
concentration of motor vehicles in those counties contributed to the
problem in Riverside and San Bernardino.
"There is no question that the voluntary reduction of unnecessary
automobile trips during severe smog conditions can help the entire four
county area."
######
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Califor a 95814
Ed Gray, Press Secretary
916-445-4571
6-13-73
#315
Governor Ronald Reagan today announced the following bills have
been signed:
AB 190 - Papan
Prohibits any person, except law enforcement personnel
Chapter 87
when on duty, operating any motor vehicle from wearing
any headset covering, or any earplugs in, both ears.
AB 323 - Townsend
Prohibits rental of any vehicle, rather than small
Chapter 88
trailers or trailer coaches, for 30 days or less unless
all equipment required by the Vehicle Code has been
provided or offered to the lessee for his use.
AB
399
-
Gonsalves Prohibits any person from operating any privately
Chapter 89
owned armored car, rather than any armored car, unless
a license to operate such car has first been obtained
from the Commissioner of the California Highway Patrol
A B 716 - Powers
Corrects an erroneous cross-reference in a Public
Chapter 90
Utilitites Code provision relating to highway carriers.
SB 114 - Berryhill Corrects an erroneous cross-reference in a Health
Chapter 81
and Safety Code provision relating to community
facilities.
SB 244 - Walsh
Limits the application of decreased speed limits for
Chapter 82
trucks on downgrades to vehicles having a manufacturer!
gross vehicle weight rating in excess of 10,000 pounds
SB 280 - Grunsky
Authorizes cities, counties and districts to provide,
Chapter 83
in contracts for public projects, penalty clauses for
late completion and also bonus clauses for early
completion.
SB 318 - Dills
Permits certain garbage disposal districts with
Chapter 84
multiyear contracts, under specified conditions,
to levy a property tax rate in excess of the base
maximum permissible rate.
SB 329 - Way
Authorizes the Director of Food and Agriculture to
Chapter 85
permit for one year, by regulation, an alternative
sampling procedure, and maturity and quality standards
for canning tomatoes.
SB 478 - Marks
Removes the provision that unemployment disability
Chapter 86
compensation benefits may be reduced by payments
received under the maritime doctrine of maintenance
and cure, and that payments received under the
maritime doctrine of maintenance and cure can be used
in computing wages for the purposes of qualifying
for unemployment.
#########
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 5814
Ed Gray, Press Secretary
916-445-4571
6-13-73
#316
Governor Ronald Reagan today said a Senate Committee's failure to
act on his constitutional amendment to limit and reduce taxes at
a
committee meeting this afternoon "makes a mockery of the constitutional
process which provides that the people should be able to decide for
themselves at the ballot box major issues affecting their future."
He termed the failure "a deliberate affront to the people of
California who, themselves, wrote the provision into the Constitution.
"To deny Californians the opportunity to vote on this program
amounts to a total distrust of the people and completely vindicates
our efforts to assure that the decision will be made through the
petition
initiative/process.'
Five of the nine votes on the committee were required to send the
constitutional amendment to the Senate Finance Committee. The four
Republican members of the committee voted to pass the measure out,
"for which they should be highly commended," he said. "One Democratic
member at least had the courage to vote no," he added. The four
remaining Democrats on the committee either failed to show up or chose
to abstain.
"Despite the fact that the legislature placed eleven constitutional
amendments on the statewide ballot last year so the people could vote
on them, this key committee has consciously and deliberately sabotaged
the right of the people to decide this important issue. Is it any wonder
then that many of our citizens have lost faith in the legislature's
ability to deal effectively with the people's business?
"Such abdication of responsibility is not only shamefully arrogant,
it is a blatant abuse of power based on the assumption that a handful of
legislators knows better than the people themselves what is good for
California.
I recognize that some of the members of this committee were merely
acting on orders from the legislative leadership of the majority party in
denying the people the right to vote on the issue. But, it is this/kind very
of irresponsible partisanship which has made tax relief so difficult to
achieve," he said.
Governor Reagan noted that there is still time to qualify the citizen
initiative for a special statewide election this fall.
He urged citizens to get behind the initiative so that they can
have the opportunity to limit and reduce the proportion of their earnings
which the state can take in taxes in the years ahead.
He said thousands of Californians will be seeking signatures at
shopping centers throughout the state this weekend in an effort to
place the issue before the people at a special election November 6.
# # #
Gray
OFFICE OF GOVERNOR RO LD REAGAN
MEMO
THE PRESS
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-14-73
#317
Tax
letter
The attached has been received by Governor Reagan from Roger A.
Freeman of the Hoover Institution on War, Revolution and Peace at
Stanford.
Freeman, a distinguished tax expert and senior fellow at the
Hoover Institution since 1962, is the author of numerous books and
articles in the field of public finance. His latest book, "Tax
Loopholes," has just been published.
Other books include: "Federal Aid to Education--Boon or Bane?;"
"School Needs in the Decade Ahead;" "Taxes for Schools;" "Crisis in
College Finance?;" and "Socialism and Private Enterprise in Equatorial
Asia."
Previously he served as a special assistant to the governor of
Washington (1950-55) ; White House assistant to President Eisenhower
(1955-56) ; was fiscal advisor to the government of Bolivia (1957) ;
served as vice president of the Institute of Social Science Research in
Washington (1957-60) ; was research director of the Institute of Studies
in Federalism, Claremont Men's College, California (1960-62).
He served as a special assistant to President Nixon while on leave
from the Hoover Institution from 1967-70; was co-chairman of the state
and local government advisory committee of the U.S. Bureau of the
Census, 1952-56; served as a consultant in school finance, White House
Conference on Education, 1955; and was research advisor to the education
committee of the U.S. Commission on Intergovernmental Relations, 1954-55.
He served as chairman of the committee on finance and public
education for the National Tax Foundation from 1957-60 and was on the
association's executive committee from 1961-64; and was a member of
the advisory board of the Tax Institute of America from 1955-61.
He is a member of the American Economic Association and the American
Society of Public Administration.
In 1959 he was the recipient of the distinguished research award
of the Governmental Research Association and was the winner of the
George Washington Honor Medal Award of Freedoms Foundation at Valley
Forge in 1967.
He also served as an advisor to Governor Reagan's tax reduction
task force late last year and early this year.
He has known A. Alan Post professionally since 1950.
Also attached is an analysis by Wesley H. Hillendahl, vice president,
director of business research, Bank of Hawaii, which stresses the per-
centage of the people's income which is being consumed by government
spending in the United States.
# # #
Gray
HOOVER INSTITUTION
ON WAR, REVOLUTION AND PEACE
Stanford, California 94305
(415) 321-2300
June 8, 1973
Dear Governor:
In reviewing the release of May 2 of the Governor's Task Force on Tax Reduction,
commenting on the Legislative Analyst's criticism of your tax reduction plan, I
am amazed, dismayed, and somewhat saddened by the nature of the Analyst's
criticism. Having known Alan Post for well over twenty years and having always
had the highest regard for his professional knowledge and judgment, I am at a
loss to understand what caused him to compile such unjustified, carping, far-
fetched, factually inaccurate and often incorrect statements.
To be sure, Mr. Post's statement that taxes and government expenditures would
now be lower had an initiative such as you now propose been adopted in 1966 is
probably correct. To control the magnitude of taxing and spending and its growth
tendency is, after all, the purpose of the action. But the claim that this would
mean "increases in local property and sales taxes" and "eliminate all of the exist-
ing direct property tax relief program" is purely imaginary.
Many of the Analyst's statements in his release of April 30 strike me as lacking
merit. Some of them must be called nitpicking because they concern minor and un-
important items. For example, the criticism in pt. #1 to pt. #3 of the inclusion
of such insignificant items in revenues as admissions to university football games.
The fact is that the U.S. Bureau of the Census includes all of the ten listed items
as revenues in its annual report on Government Finances in
and has used those
definitions and concepts now consistently for over twenty years. There is not a
very clear line of distinction between taxes and revenues in general usage; for ex-
ample, the Bureau of the Census treats receipts from employment taxes (unem-
ployment and social security taxes) as "insurance trust revenues" (and not as taxes)
while many other fiscal analysts classify those receipts as taxes (which legally they
are). Census treats employee retirement contributions in the same manner as
social security contributions (i.e., as trust fund contributions). Mr. Post does
not object to social security contributions being treated as taxes, but for some rea-
son would exclude employee contributions. (I can see no difference between the
two; they both are imposed by law and serve the same purpose.)
- 2 -
These are really technical details which are of little interest or significance to the
public. The essential fact is that all of the amounts included in the Governor's
computation are governmental revenues and ought to be considered when measuring
the size of government.
Nor does the Analyst's objection to the use of Personal Income rather than Net
National Product have much validity. In the end only people pay taxes -- or con-
tribute similar "revenues" to government not legal abstractions or properties
as such and it is perfectly all ri ght to use Personal Income as a measuring stick --
which does not deprive anyone else from using some other measure, provided that
it is available (which Net National Product on a state-by-state basis is not). In its
annual report Governmental Finances in
the U.S. Bureau of the Census relates
state and local government revenues and expenditures to personal income.
Moreover, what counts in the end is not whether total governmental revenues or
expenditures now equal 44% of Personal Income (or any other concept such as
National Income or Net National Product which are computed only on a national
basis) or 43% or 42% but the fact that this is a very high share of the income pro-
duced by the people and that it has been increasing sharply, particularly at state and
local levels.
The U.S. Bureau of the Census shows all governmental revenues (federal-state-
local) nationally to equal 41.1% of personal income. It also shows state and local
government general revenues in California to be 20.9% of personal income, compared
with a national average of 18.1%. (The Bureau does not compute combined federal-
state-local revenues for each state.) This suggests that following the Census
Bureau's methods - federal, state and local government revenues in California
equal at least 44% of personal income.
On the whole, the comments which the Governor's Task Force prepared in response
to the Legislative Analyst's criticism appear to me to be well-reasoned, justified
and correct. I hope that Mr. Post will take them to heart and give in the future more
careful and objective professional consideration to the facts before issuing such ill -
tempered and slanted statements as he did in this case.
Sincerely yours,
Roger A. Freeman
Bank of Hawaii-April, 1973
BIG GOVERNME T'S DESTRUCTION OF THE AM
ICAN ECONOMY
- THE CONSEQUENCES AND THE CHOICES
By Wesley H. Hillendahl
Vice President, Director of Business Research
Bank of Hawaii
A CRITICAL ASSESSMENT OF THE
ventionally related to Gross National Product (GNP)
IMPACT OF BURGEONING GOVERNMENT
However, this ratio tends to mask the growth of govern-
ment because GNP includes government spending as
The issues of higher prices, higher taxes, and spiraling
one of its components and therefore is not useful in
government spending are on every thoughtful person's
this analysis.
mind. It is generaliy understood in a vague way that
TREND OF EXPANDING COST OF GOVERNMENT
the problems of inflation, expanding credit demands and
Following the great depression when combined gov-
high interest rates are related to big government. Yet
ernment spending' rose to between 20 and 23 percent
the notion is prevalent, from welfare recipients to edu-
of personal income, World War II briefly required a level
cators to high level businessmen, that somehow funds
of government spending amounting to more than 62 per-
from Washington are free for the asking - no strings
cent of personal income, accompanied by accute infla-
attached - and each is obliged to compete for funds
tion of prices. By 1947, government spending returned
which otherwise will be granted elsewhere.
to about 23 percent. Subsequently, over the years gov-
One may properly ask, just how critical are the levels
ernment spending has gradually taken an increasing
of taxation and government spending today? Can govern-
share of personal income. Spending reached 35.8 per-
ment overhead reach the point where it endangers eco-
cent in 1960, and 41.8 percent in 1970. Presently, gov-
nomic stability? Further, did the urgency in the Presi-
ernment absorbs 43.5 percent of personal income, twice
dent's recent message to the people of the United States
the share 40 years ago.
reflect a concern about a resurgence of inflation as a
1950-1960: A REFERENCE PERIOD
consequence of increased government spending, or did
Adjustments of the highly inflationary World War
it reflect a deeper concern related to a more profound
II period having been accomplished, business became
issue: namely, the survival of the United States economy?
relatively stable and profitable during the decade
For many decades the combined spending by local,
between 1950 and 1960. Being one of the relatively
state and federal governments has been creeping up as
more stable periods of this century, this period was se-
a share of the income of the private economy. In fact,
lected as a basis for comparison with subsequent periods.
the trend has been in effect for such a long time that
It was characterized as follows: new capital for consumer
it is largely taken for granted.
and business investment was adequate, interest rates
Our purpose here is to attempt first to establish a
were reasonable. As an example, yields of AAA bonds
relationship between the size of governments in the
were in the 3 to 4 percent range. During this period,
United States and the requirement for accelerating infla-
tion, more or less sustained high interest rates, and
FIGURE 1
chronic problems in the credit markets; second, to
employ this relationship as a basis for evaluating the
MEASURES OF LIQUIDITY
PERCENT
RATIO
future consequences if government continues to take an
increasing share of private sector revenues.
60
GOVERNMENT CAN ONLY SPEND THAT WHICH IT FIRST TAKES
©CORPORATIONS
FROM PEOPLE
50
In this analysis, personal income is used as a basic
measure of the private sector of the economy. The con-
40
cept of personal income is useful because all taxes and
sources of government income are ultimately paid by
30
3:1
people out of personal income. For example, all cor-
porate taxes must become part of the purchase price
©COMMERCIAL BANKS
of consumer products. Taxes on intermediate products
20
2:1
which are consumed by companies must in turn be
included in the price of the final product or service for
3 CONSUMERS
10
(RIGHT SCALE)
1:1
which the consumer ultimately pays. Also, all direct ser-
1
CASH ASSETS AS A PERCENTAGE OF CURRENT LIABILITIES
vices and products provided bv government-owned
GOVT. SECURITIES AS A PERCENTAGE OF TOTAL BANK CREDIT
RATIO OF DISPOSABLE PERSONAL INCOME TO CONSUMER DEBT
activities are ultimately paid out of personal income.
0
0
So all government revenues must ultimately be paid by
1950
55
83,
65
70
'72
people.
Government spending as used here includes the sum of all levels
In passing we note that government spending is con-
of government including federal, state and local.
I
Bank of 1973
the money supply M₂ (defined by r
ey in circulation,
Because the relatic
ip between the rate of expansion
and demand and savings deposits 5 banks) expanded
of the money supp., and wages and prices is well es-
at about 3½ to 4 percent annually. This constitutes a
tablished, it followed that increases in the levels of both
noninflationary growth of the money supply, as it paced
wages and prices, also began to accelerate. However,
the growth in real personal income.
because prices paced the rise in income, the vast increase
(It appears that the growth of real personal income in
in average family incomes between 1965 and 1970 pro-
the United States has averaged about 4 percent for well
luced no increase in real income. (See Figure 2.) The
over a century.) However, the deterioration of liquidity
expansion of money reached a peak of over 10 percent,
(retained cash) in the economy, including business,
and as an illustration of climbing interest rates, bond
financial institutions, and individuals, indicated trouble
yields soared from the previous 4 to 5 percent level
ahead. (See Figure 1.) While liquidity may have been
to well over 8 percent.
somewhat excessive during 1950 as a result of savings
Apparently a critical point had been reached in 1965.
accumulated during the war, liquidity was clearly de-
The internal liquidity generated by individuals and busi-
teriorating by 1960. This warning signal reflected in
ness was noilonger adequate to supply the credit require-
part the fact that government spending was becoming
ments of the nation. While this condition had been
a larger share of the total economy and that govern-
imposed temporarily during wars and previous periods
ment was draining off liquidity through taxation. The
of tight money, it now extended continuously even
burden of the federal, state and local governments
through periods of monetary ease. By 1970, the burden
rose from about 28 percent to about 35 percent of per-
of the government reached 42 percent of personal
sonal income during that decade.
income. Over the years, government spending at all
levels nationally had been expanding at a rate of about
1960-1965: MILDLY INFLATIONARY
11 percent per year as compared to personal income
Then during the first half of the 1960 decade, inflation
which was increasing at a little over 8 percent. The gap
began to creep up. Capital remained generally adequate,
between personal income and government overhead
but as inflation crept up, interest rates also began to
continued to close and the consequent loss of liquidity
rise in anticipation of additional inflation. For example,
in the system forced more and more people into the
AAA bond yields rose to between 4 and 5 percent as
credit markets. In Figure 3, the hatched area between
compared to the previous 3 to 4 percent level. The burden
the lines of the demand for new capital by industry and
of government by 1965 had risen to about 37 percent
the availability of internal capital through cash flow, illus-
of personal income and the money supply, M2, was being
trates the extent of the credit shortage which began in
expanded at about 6 percent annually. The liquidity pic-
1965. This shortage provided the foundation for the high
ture continued to deteriorate. The government burden
interest rates which have been in effect ever since.
having continued to increase, necessary credit expansion
FIGURE 3
was becoming increasingly inflationary.
TOTAL DEMAND FOR NEW CREDIT AND
1965: A CRITICAL YEAR
During the second half of the 1960 decade, inflation
CORPORATE FUNDING IN THE U.S.
of the money supply (M2) picked up additional steam.
$ BILLIONS
FIGURE 2
350
EFFECTS OF INFLATION
ON FAMILY INCOME IN THE U.S.
300
TOTAL DEMAND FOR'
DOLLARS
(worker with three dependents)
NEW CREDIT
120
250
110
200
Average spendable
100
weekly earnings in
150
current dellars.
TOTAL CAPITAL?
90
INVESTMENT
100
80
Average spendable
50
AVAILABLE
70
weekly earnings in
INTERNAL FUNDS
constant 1950 dollars.
0
0
1960
1965
1970
1975
1980
1960
'62
'64
99,
'68
'70
'72
IFUNDS RAISE BY NOMEINANCIAL SECTORS IN US CREDIT MARKETS
2PURCHASES OF PHYSICAL ASSETS BY NONFARM NONFINANCIAL CORPORATIONS
2
Bank of Hawaii-April. 1973
required to support $1,000 of person
icome may reach
FIGURE 6
$200, depending on the phase of the business cycle.³
The basic relationship between credit expansion and
GROWTH OF MONEY* RELATED TO GOVERNMENT
government burden shown in Figure 5 appears to be
BURDEN ON PERSONAL INCOME
the underlying cause of the inflationary monetary condi-
PER CENT
34
tions which historically has been associated with big
ANNUAL CROWTH OF
government.
MONEY AND CREDIT
7.
30
FIGURE 5
NEW CREDIT RELATED TO GOVERNMENT
26
SPENDING IN THE U.S.
22
% 35
HYPER-INFLATIONARY
TOTAL CREDIT DEMAND
AS SHARE OF PERSONNEL INCOME
'45
18
30
14
7071 SEPECTARY EASE: 1980
1985
'44
BUSINESS CYCLE CYCLE CORTRACTION 1980
INFLATIONARY
25
72
67
10
68
CONSTRAINT:
8
20
BUSINESS
3
'63
72
'62
6
66
1973?
71
61
THE
4
39
1950
69
1960
15
65
2
35
67
NON-INFLATIONARY
70
0
38
53
10
20
30
40
50
60
70
69
'62
TOTAL GOVERNMENT SPENDING AS SHARE OF
10
68
Toll
PERSONAL INCOME
60
*M2 MONEY IN CIRCULATION PLUS DEMAND AND SAVINGS DEPOSITS IN BANKS
36
57
5
cial panics in the United States around the turn of the
century. The point is, that once government grows to
a certain point with relation to the size of private econ-
0
omy, inflation is unavoidably necessary and must pro-
30
40
50
60
70%
ceed at an accelerating rate as government continues
TOTAL GOVERNMENT SPENDING AS SHARE
OF PERSONAL INCOME
to grow.
In the present environment, what was considered
This relationship also accounts for an apparent para-
a highly expansionary rate before 1965, is now becoming
dox which exists during periods of accelerating inflation
restrictive, showing that the liquidity shortage is becom-
- the faster the money supply is expanded the less
ing more acute. A higher rate of credit expansion is
money is available to conduct private business.
becoming necessary to maintain the economy. A critical
CREDIT EXPANSION GENERATES MONETARY INFLATION
transition occurred in 1965 from a relatively noninfla-
The basic relationship is that as government grows
tionary environment to one in which accelerating credit
beyond the point where it absorbs more than about 20
expansion is necessary to offset the drain of the total
percent to 25 percent of personal income, the growth
government overhead on the private economy. Nation-
of the nation's money supply must be accelerated to
ally, credit requirements have doubled over the last
inflationary rates. (See Figure 6.) Then, as the size of
decade as a consequence of diminishing liquidity, and
government goes from 40 percent to 50 percent or more
may be expected to accelerate in the future. (See Fig-
of personal income, the rate of expansion of money must
ure 3.)
become hyperinflationary to accommodate the spiral-
ing credit requirements of the economy.
MONETARY INFLATION CAUSES WAGES AND PRICES TO RISE
This is not to say that turbulence in the credit markets
Rapid expansion of credit and the accompanying
and inflation cannot be engineered at any time, either
monetary expansion must always result in comparably
by the monetary authorities under a central banking sys-
rapid increases in wages and prices. The close correlation
tem, e.g., Germany after World War II, or by large fi-
between inflating a nation's money supply and increases
nancial interests in a less centralized system, e.g., finan-
in prices is demonstrated by the following statistics:4
As Figure 5 shows, credit requirements are somewhat greater in pro-
4 Fifteen year compound growth rates compiled by Beryl Spinkel,
portion to personal income during business cyc expansion than during
Economist for Harris Trust and Savings Bank, presented to the Canadian
business cycle contractions, and therefore must be expressed as a
Standing Senate Committee on National Finance, Ottawa, Canada,
range.
June 10, 1971.
4
Bank of Mawan-April, 1973
MONEY SUPPLY AND PR'
INCREASES
FIGURE 7
Money Supply/Real
Consumer
A CENTURY OF GROWTH
Gross National
Price
Production
Indox
IN UNITED STATES MONEY SUPPLY
(Percent)
(Percent)
Brazil
35.3
37.9
BILLIONS
$ BILLIONS
10,000
10,000
Chile
29.0
27.6
200%
Colombia
11.2
10.4
1,000
THE
1,000
Peru
7.7
9.0
Mexico
3.8
3.6
Japan
4.9
4.3
100
100
France
4.8
4.9
85%
Canada
2.2
2.2
0
0
A high rate of increase in prices always accompanies
a high rate of monetary inflation. Only when the rate
1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990
of monetary expansion is held in check are prices stable.
Hence, only by alleviating those conditions which
GOVERNMENT SPENDING RELATED
require high rates of monetary expansion can a stable
TO PERSONAL INCOME IN THE UNITED STATES
Ratio:
price structure be restored in the United States.
Total
Total
Government
Personal
Government
Spending/
Income
Spending'
Personal Income
Year
($ Billion)
($ Billion)
(Percent)
THE OUTLOOK
1975
1,185
554
47
Extending the trends of the last several decades into
1980
1,758
925
53
the future, we may expect that by about 1978, govern-
1985
2,607
1,545
59
ment burden will pass through the point representing
1990
3,866
2,600
67
50 percent of personal income and to 60 percent and
1
Combined total of federal, state, and local governments.
above before 1990 as shown at right:
Projected on the basis of 1973 dollars and present growth trends.
FIGURE 8
$BILLIONS
$ BILLIONS
10,000
10,000
-
TRENDS IN
(A) PERSONAL INCOME
PERSONAL INCOME
1,000
1,000
ECONOMIC
AND
61%
COLLAPSE
59%
?
AFTER TAX
GOVERNMENT SPENDING
PERSONAL INCOME (B)
>-8'01
IN
100
THE UNITED STATES
100
TOTAL GOVERNMENT (C)
80%
SPENDING
ALL LEVELS)
NOTE: (B) =(A)-(C)
10
10.
1950
1960
1970
1980
1990
2000
2010
5
Bank of Hawaii--April, 1973
As to precedent for probable isequences, we may
tial real economic rowth can best be attained in a non-
compare the period of World War II during which gov-
inflationary setting.' It is clear that constraints in govern-
ernment spending rose through 50 percent of personal
ment spending, both domestically and abroad, is the
income to a maximum of 63 percent in 1943 and 1944.
only course that will contain inflation, and provide for
The money supply doubled over the 5-year period be-
real economic growth and a sound monetary system
tween 1941 and 1946, and by one-third in 1943 alone to
both domestically and internationally."
accommodate war time credit requirements. (See
The extension of present trends offers quantitative
Figure 7.) Average wage and price levels after the war
evidence in support of this statement. The present size
were proportionately about twice prewar levels in re-
of government is demonstrably excessive. In answer to
sponse to war time inflation of credit.
the question posed initially, the economy is in fact in
Consequently, as government expands and liquidity
danger of being toppled within the foreseeable future
continues to decline in the future, the rate of growth
by further increasing the size of government.
of money must be accelerated. By 1980, an annual
WHITHER INFLATION?
increase of some 15 percent would be necessary to
There is a tendency to treat inflation as if it were
accommodate the needs of the economy for credit. By
a threat rather than an actuality. In this regard the words
1985, an annual increase in the money supply of 20
"renewed threat" are frequently employed such as the
percent or more is likely. And that's hyperinflation!
consequence today of the economy approaching full
Should the growth of government continue to outpace
capacity. The record tells another story. Since 1900 the
the private economy, the share of personal income that
is left over after the government burden, will begin to
money stock has been increased about 81 times, at an
level out. Finally, unless the expansion of government
average annual increase of 6.6 percent before 1930, and
7.5 percent from 1933 to the present. On a per capita
is stopped, before the turn of the century residual per-
basis, the monetary stock is $2,555 compared to $87
sonal income will plummet. It should be unnecessary
in 1900, for an increase of 29 times, as shown below:
to observe that this means the entire United States econ-
omy would collapse. (See Figure 8.)
MONEY STOCK RELATED TO POPULATION
IN THE UNITED STATES
One might. be inclined to feel that the economic
Money'
Per Capita
collapse could be avoided by the government as it is
Stock M2
Population²
Money Stock
reported to have done during the Great Depression by
($ Billion)
(Million)
(Amount) (Ratio to 1900)
deficit spending. However, the role of government during
1900
6.6
75.9
$
87
1.0
the Depression is a moot question, some believing that
1910
13.6
91.9
148
1.7
monetary and fiscal manipulation induced the Depres-
1920
34.2
105.7
323
3.7
sion in the first place and then aggrevated its effects
1930
44.8
122.7
365
4.2
rather than improving conditions.⁵ It must also be remem-
1940
54.2
132.6
409
4.7
1950
152.9
152.3
bered that government represented less than 20 percent
1,000
11.5
1960
214.6
180.7
1,188
13.6
of personal income before the depression, whereas in
1970
425.2
204.9
2,075
23.9
the future government will be much larger. Furthermore,
1972 (P)
525.1
208.6
2,517
28.9
even today the market is offering increasing resistance
1973 - March
534
209
2,555
29.4
to the outpouring of government issues, and abroad
EST:
the flood has disrupted the entire international monetary
1975
750
214
3,506
40
structure. Today, excessive government spending is, of
1980
1,700
224
7,585
87
itself, the problem and economic dislocations will only
1985
4,500
236
19,000
218
be aggrevated by more spending.
,
Emphasizing this point, we wrote a year ago6 "The
Defined asM2, money in circulation, plus bank demand and time
deposits net of Certificates of Deposits.
Keynesian concept of spending our way out of recessions
2 Population projected by Bureau of the Census at present average
via federal deficits while acting as lady bountiful to the
fertility rate of 2.1 births per woman.
nations of the world in the long run has proved to be
NOTE: Money stock projected after 1973 on the basis of a relationship
destructively inflationary and unworkable. Henry Kauf-
of credit requirements shown in Figure 6.
man of Salomon Brothers recently wrote that
Translated into price comparisons, the popular "Big
'Compromises with inflation are detrimental to real
Mac" hamburger which is priced at 65 cents today would
economic expansion. High rates of inflation ultimately
have sold for 8 cents in 1900. A $50,000 house today
set in motion deflationary forces rather than economic
would have sold for $6,000 or less in 1900. Projecting
stimulants. Consequently the distorting influence of infla-
the money supply to 1985 on the basis of expected credit
tion should by now have debunded the myth that a mod-
demands (as related in Figures 5 and 6), the corres-
erate rate of inflation does not interfere with real
ponding price would be more than $2.00 for the "Big
economic expansion and therefore is tolerable. Substan-
Mac." The price of the house would be $150,000 to
$ Murray N. Rothbard, America's Great Depression, D. Van Nostrand
$200,000, or more. Incredible? Yes, but not really! Not
Co., 1963.
only has the country experienced periods of comparable
Bank of Hawaii's Monthly Review, for March-April, 1972.
inflation, but underlying conditions for such out-
6
Bank of 1973
of-control developments have 1
in the making for
A first step
his direction would be a reduction
more than 40 years.
in the rate of growth of combined federal, state and
local government spending in proportion to the growth
THE HAWAIIAN PROBLEM
of personal income. Having stabilized this relationship,
The Hawaiian economy exhibits trends which are
long range targets should be established to gradually
similar to the national economy except that the rate of
bring total government spending successively to 35 per-
growth in the total state and local budgets coupled with
cent of personal income, then to 30 percent and finally
federal taxes that are generated by the economy of
to 25 percent of personal income as an upper limit.
Hawaii has been about 14 percent annually since the
The goal is to achieve a viable inflation free economy.
mid-1960's as compared with a growth in personal
An immediate prohibition must be placed on any
income of a little over 10 percent annually. These two
further tax increases at the national, state and local levels.
trend lines are likewise converging. An extension of the
More taxes will simply fan the fires of inflation and
trends of the past eight years will result in the government
economic instability. Business, labor and the consumer
taking 50 percent of personal income in Hawaii by about
are constantly cajoled to live within their means; a com-
1980. After that, net personal income will gradually stop
parable hard line position with respect to government
increasing, and unless government spending is curtailed
must be adopted at once.
the Hawaiian economy will also collapse in the 1990's.
In working toward a limit on the size of government,
This means the problem of excess government in
it will be necessary to establish rigid priorities for those
Hawaii is similar to that of the United States as a whole,
projects and programs which are conducive to broaden-
but the problem in Hawaii should be easier to bring
ing the productive base of the private economy. Emphasis
under control as compared to the momentum of the
should be placed on improving productivity and profita-
massive bureaucratic machinery in Washington.
bility of the nation's workers and industries. Excluded
INTERNATIONAL OVERTONES
from the list would be programs which artificially stimu-
Not only is this problem urgent domestically but it
late consumer spending and programs which dissipate
also has international overtones. Never before has the
the nation's resources.
United States been challenged internationally in world
A timetable of specific objectives should be adopted,
markets to the degree that it is today by the European
providing for short, medium and long term goals in
Economic Community (EEC) or Common Market.? The
achieving an overall and complete reduction in the size,
international issue presently centers on competition
funding and power of the government over the economy
between the inflated paper dollar and a string of common
and the individual consumer/taxpayer.
market currencies tied to the German Deutcmark. The
Among the many possible considerations demanding
mark is pegged to the SDR which in turn is defined
attention are:
as 1/35 ounce of gold bullion. Since West Germany
has overtaken the United States in world trade, it appears
1. A review of operating budget requests to trim ex-
possible for the German mark to supercede the U.S.
cesses. Manpower requests, except in absolutely essen-
dollar as the basis for much of world trade unless the
tial public services, e.g. public protection, should be
value of the dollar is stabilized.
frozen. Present positions should be allowed to elapse
by natural attrition. In Hawaii, for example, additional
RATIONAL ALTERNATIVES
studies, experimental programs and new projects should
With these sobering prospects in mind, it seems only
not be authorized. Public pyramids of prestige, such as
reasonable that the overall role of government should
the proposed University of Hawaii law and medical
be reexamined toward the objective of developing guide-
schools, should be postponed indefinitely inasmuch as
lines to limit its size. To implement a program to contain
the growth of these professions in Hawaii has accom-
excessive governmental overspending is not easy; the
modated than 100 each of newly licensed attorneys
American taxpayer has allowed and even encouraged
and doctors annually from all sources for the last five
the condition to become increasingly more acute. If the
years. The proposed second University of Hawaii campus
trend is to be turned around, there must be a genuine
on Oahu is not needed since the Manoa campus alone
desire and steadfastness on the part of the public to do
awards diplomas to more individuals annually than the
so at this time.⁸
total absorbed into the business and professional work
7 See Bank of Hawaii Monthly Review, January, 1973 P 4.
aid and comfort;" (Who is willing to say no to federal aid to education,
The moral overtones to inflation and paternalistic government cannot
revenue sharing, model cities, food stamps; medicare, medicaid, sub-
be stressed too strongly. Whether the period is Greece, Rome, Spain
sidies for housing, transportation, etc., etc.?) "thirdly, people are first
after the Inquisition, revolutionary France of the 1790's, or the present,
enticed by the benefits and then obliged by authority to exchange
the moral issue is the same: "When in the conquest of power and
freedom for status;" (the strings attached to federal aid) "and finally,
for political ends a government deliberately engineers inflation, all
the revelry of public money, which for a while seems to cost nobody
the monetary evils occur as before, and then to these you add such
anything, brings to pass a state of moral obliquity throughout society.
consequent JS: first, that as the government expands explosively
The monetary debac to is relatively unimportant. The moral debacle
the people will lose control of it; secondly, as the people receive
is cancerous and possibly incurable." Source: Garrett, Garet, The Peop-
millions of checks from the automatic printing machines in the United
le's Pottage, The Caxton Printers, Ltd., Caldwell, Idaho 1965, pp. 101-
States Treasury they learn to become dependent on government for
102 original copyright 1953.
7
force who require degrees.' Other "pork barrel" capital
attempt social programming and have instead produced
construction projects, likewise, should be eliminated.
social disruption the community.
In the future, capital projects shou be financed with
Repeal collecuve bargaïning laws which permit
a minimum of 50 percent cash to place CIP budgeting
public employees to strike and to hold the taxpayers
on more of a pay as you go basis.
as economic hostages. Likewise, any additional labor
Repeal the Employment Act of 1946. Unless the
legislation that allows compulsory unionization and/or
concept underlying the Employment Act of 1946
special tax privileges to political pressure groups should
mended (with its present interpretation in the full
be abandoned. All sectors of the economy should be
employment budget) is abandoned, the burden on the
equal before the law. Rather than abrogate the process
private sector will expand to the point where a reasonable
of collective bargaining, as is being advocated in some
level of unemployment is impossible and the resultant
quarters, monopolistic labor unions should either be sub-
expanding deficits will only accelerate inflation and
ject to the same type of anti-merger and anti-monopoly
assure ultimate economic collapse.
laws under which business operates, or both labor laws
Roll back governmental regulatory and control
and anti-trust laws should be overhauled. The massive
functions over private enterprises. A by-product of gov-
economic deprivation of citizens by the blackades of
ernment control has been an increase in nonproductive
monopolistic unions must be eliminated.
overhead. Over the last 20 years professionals such as
tax specialists, accountants and attorneys needed to cope
Target incremental tax reductions and remove
with the red tape have doubled their share of the work
regressive and punative tax assessments from those that
force. In Hawaii, milk prices have gone up, not down,
contribute the most to economic development through
under controls. Rent controls maintain already high
investment and greater productivity. A flat tax rate, appli-
prices and discourage upkeep of existing buildings and
cable to all who must pay taxes, is the surest way to
incentive to build new units and will eventually result
drive home the point that the burden of taxation is a
in acute housing shortages; Cf. New York City, Sweden,
deprivation of the economic freedom of all individuals.
France, et al. Utility rates nationwide have increased
8. Eliminate the need for burgeoning welfare roles
while service and ability to meet future demands have
by checking inflation. Meanwhile, the cushion against
decreased under regulation. The air and surface transpor-
failure became excessive when it became possible to
tation industries have been ravaged by Federal agencies
derive more income by being on the welfare roles than
and Public Utility Commissions. Current moves to con-
from being a productive worker. Consequently, in
vert even more consumer items, e.g. gasoline, housing,
Hawaii, the welfare burden has been increasing at a
food, land, to "public utilities" must be stopped at the
compounded rate of 22 percent annually. At this rate,
outset before more acute shortages develop.
by 1980, welfare payments in Hawaii will equal the
As a prime example of price fixing, the arbitrary $35
total operating budget for the state only ten years earlier.
per ounce price of gold coupled with the prohibition
This rate of growth obviously cannot be sustained.
of private ownership and restrictions on production of
gold, has caused an acute world wide shortage of ex-
9. Review the role and functions of the central bank-
change reserves and the destruction of the international
ing system with regard to monetizing federal deficits and
monetary system.
economic manipulation. A halt must be brought to the
4. Divest government of activities that should be op-
growth of the federal debt which now stands at about
erated with private capital. Governmental inefficiency
$450 billion.
in its management functions is most pronounced when
10. Bring the far flung Federal foreign aid program
it becomes involved directly in business enterprises. Any
into reasonable limits. President Nixon reported the Fed-
future solution to the entire problem of spending requires
eral Government has given $200 billion in foreign aid
that gradually, but surely the government divest itself
since World War II. These programs have been a major
of all income producing enterprises from parking lots
factor in the accumulation abroad of short term credits)
to electric power production, that should be under profit
against gold, and have had a serious impact on the
making, tax paying private operation. Many profitable
nation's debt.
self supporting private operations have been removed
from the tax rolls thus shifting the total operating burden
11. Finally, move toward a realistic readjustment of
to "the people" as a result of government's assuming
the value of reserve gold to reflect the realities of interna-
responsibility to operate the enterprises - sometimes
tional trade. Return of dollar convertibility to gold is
in direct competition with private business - on a tax
essential to restore the confidence of our trading neigh-
free basis.
bors, and to provide a brake against out-of-control spend-
Stem the growing assault on private property de-
ing by politicians. The sovereignty of the dollar in world
velopment. Restrictive zoning laws, originally designed
trade is threatened by the creation of a European Com-
for orderly development of property have been used to
mon Market currency. The international trade compe-
tition of the Common Market using a gold backed cur-
"Manpower Directions to 1975." Department of Labor and Indus-
rency, cannot be met effectively with an impoverished
trial Relations.
paper dollar.
8
9134
RULES AND REGULATIONS
satis ed that appropriate corrective ac-
1973 and ending June 30, 1974) shall be
government shall make available for
tion has been taken and that there will
filed with the Secretary on a date he shall
public inspection a copy of each of the
no longer be any failure to comply. Until
determine. Thereafter, each planned use
reports required under $ 51.11(a) and
he is satisfied. the Secretary shall make
report shall be filed prior to the begin-
(b) and information as necessary to sup-
no further payments of such amounts.
ning of an entitlement period as defined
port the information and data submitted
§ 51.4 Extension of time.
in § 51.2(f).
on each of those reports. Such detailed
(b) Actual use report: status of trust
information shall be available for public
When by these regulations (other than
fund. Each recipient government which
inspection at.a specified location during
those specified in subpart F of this part)
receives funds pursuant to the Act shall
normal business hours. The Secretary
an act is required within a specified time,
submit to the Secretary an annual re--
may prescribe additional guidelines con-
the Secretary may grant a request for an
port, on a form to be provided, of the
cerning the form and content of such
extension of time if in his judgment it is
amounts and purposes for which such
information.
necessary and appropriate. Requests for
extensions of time shall set forth the
funds have been spent or otherwise
§ 51.14 Reports to the Bureau of the
transferred from the trust fund (as de-
facts and circumstances supporting the
Census.
fined in $ 51.40(a)) during the reporting
need for more time and the amount of
period. Such report also shall state any
It shall be the obligation of each re-
additional time requested.
interest earned on entitlement funds
cipient government to comply promptly
§ 51.5 Transfer of funds to secondary
during the period and the balance of the
with requests by the Bureau of the Cen-
recipients.
trust fund as of the date of the report's
sus (or by the Secretary) for data and
information relevant to the determina-
The prohibition and restrictions on the
submission. Such reports shall show the
use of entitlement funds set forth in
status of the trust fund as of June 30 and
tion of entitlement allocations. Failure
subpart D of this part apply to a recipi-
shall be filed with the Secretary on or
of any recipient government to so comply
ent government's entitlement funds
before September 1 of each calendar
may place in jeopardy the prompt re-
year. All such funds must be used, obli-
ceipt by it of entitlement funds.
which are transferred by it to another
governmental unit or private organiza-
gated, or appropriated within the time
Subpart C-Computation and Adjustment
tion. A violation of subpart D of this part
period specified in $ 51.40(b).
of Entitlement
by a secondary recipient shall constitute
§ 51.12 Certifications.
§ 51.20 Data.
a violation by the recipient government
and the applicable penalty shall be im-
The Secretary shall require a certifica-
(a) In general. The data used in de-
posed on the recipient government.
tion by the Governor, or the chief ex-
termination of allocations and adjust-
ecutive officer of the unit of local gov-
ments thereto payable under this part
Subpart B-Reports and Written
ernment, that no entitlement funds have
will be the latest and most complete data
Communications
been used in violation of the prohibition
supplied by the Bureau of the Census or
$ 51.10 Reports to the Secretary; Assur-
contained in § 51.30 against the use of
such other sources of data as in the judg-
ances.
entitlement funds for the purpose of ob-
ment of the Secretary will provide for
(a) Reports for review and evaluation.
taining matching Federal funds. In the
equitable allocations.
case of a unit of local government the
(b) Computation and payment of en-
The Secretary may require each recip-
Secretary shall require a certification by
titlements. (1) Allocations will not be
ient government receiving entitlement
the chief executive officer that entitle-
made to any unit of local government
funds to submit such annual and interim
ment funds received by it have been used
if the available data is so inadequate as
reports (other than those required by
§ 51.11) as may be necessary to provide a
only for priority expenditures as pre-
to frustrate the purpose of the Act. Such
basis for evaluation and review of com-
scribed by $ 51.31. The certifications re-
units of local government will receive an
pliance with and effectiveness of the
quired by this section shall be in such
entitlement and payment when current
form as the Secretary may prescribe.
and sufficient data become available RS
provisions of the Act and regulations of
necessary to permit an equitable alloca-
this part.
§ 51.13 Publication and publicity of re-
tion.
(b) Requisite assurances for receipt
ports; public inspection.
(2) Payment to units of local govern-
of entitlement funds. Each Governor of
(a) Publication of required reports.
ment for which the Secretary has not
a State or chief executive officer of a
Each recipient government must pub-
received an address confirmation will be
unit of local government, in order to
lish in a newspaper a copy of each report
delayed until proper information is avail-
qualify for entitlement funds, must file
required to be filed under $ 51.11 (a) and
able to the Secretary.
& statement of assurances when re-
(b) prior to the time such report is filed
(3) Where the Secretary determines
quested by the Secretary, on a form to
with the Secretary. Such publication
that the data provided by the Bureau of
be provided, that such government will
shall be made in one or more newspapers
the Census or the Department of Com-
abide by certain specific requirements of
which are published within the State and
merce are not current enough, or are not
the Act and the prohibitions and restric-
have general circulation within the geo-
comprehensive enough, or are otherwise
tions of Subparts D and E of this part,
graphic area of the recipient government
inadequate to provide for equitable al-
with respect to the use of entitlement
involved. In the case of a recipient gov-
locations he may use other data, includ-
funds. The Secretary will afford each
ernment located in a metropolitan area
ing estimates. The Secretary's deter-
Governor the opportunity for review and
which adjoins and extends beyond the
mination shall be final and such other
comment to the Secretary on the ade-
boundary of the State, the recipient gov-
additional data and estimates as are
quacy of the assurances by units of local
ernment may satisfy the requirement of
used, including the sources, shall be pub-
government in his State.
this section by publishing its reports in
licized by notice in the FEDERAL REGISTER.
§ 51.11 Report on Planned Use and
a metropolitan newspaper of general cir-
(c) Special rule for 6 month entitle-
Actual Use of Funds.
culation even though such newspaper
ment periods. For entitlement periods
(a) Planned use report. Each recipient
may be located in the adjoining State
which encompass only one-half of a year,
government which expects to receive
from the recipient government.
the adjusted taxes and intergovern-
funds under the Act shall submit to the
(b) Publicity.-Each recipient govern-
mental transfers of any unit of local gov-
ment, at the same time as required for
ernment for that half-year will be esti-
Secretary a report. on a form to be pro-
publication of reports under paragraph
mated to be one-half of the annual
vided, of the specific amounts and pur-
poses for which it plans to spend the
(a) of this section, shall advise the news
amounts.
funds which it expects to receive for an
media, including minority and bilingual
(d) Units of local government located
entitlement period. The planned use re-
news media, within its geographic area
in more than one county area. In cases
ports for the third and fourth entitle-
of the publication of its reports made
where a unit of local government is lo-
pursuant to paragraph (a) of this sec-
cated in more than one county, each part
ment periods (the 6-month period begin-
tion, and shall provide copies of such
of such unit is treated for allocation pur-
ning January 1, 1973 and ending June 30,
reports to the news media on request.
poses as a separate unit of government,
1973, and the fiscal year beginning July 1,
(c) Public inspection.-Each recipient
and the adjusted taxes, and intergovern-
FEDERAL REGISTER, VOL. 38, NO. 68-TUESDAY, APRIL 10, 1973
OFFICE OF GOVERNOR R
LD REAGAN
RELEASE:
mmediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-15-73
#318
Governor Ronald Reagan today announced that the following bills have
been signed:
AB 627 - L.Greene
Requires, unless exempted by the State Allocation Board
Chapter 96
each school district applying, after July 1, 1973, for
state aid for the rehabilitation or replacement of
structurally inadequate school facilities to either,
(1) submit a long-range master plan justifying the
application, or (2) certify that replacement facili-
ties will be located on an existing site containing
a school building, or (3) certify that the applicant
district maintains only one school.
AB 383 - MacDonald Permits a county superintendent of schools to contract
Chapter 95
with a school district or another county superintendent
to provide education for physically handicapped pupils
residing anywhere within the county, rather than only
for those physically handicapped pupils residing in
school districts having an average daily attendance
of less than 8,000.
SB 37 - Dills
Permits all persons, rather than males, who were
Chapter 91
assigned to identification and communication duties
on August 4, 1972, to elect to be local safety members
if their employing contracting agency so elects.
SB 101 - Rodda
Eliminates authorization for the office of the
Chapter 92
California Educational Facilities Authority to be
maintained in any city other than Sacramento.
SB 363 - Grunsky
Increases the maximum tax rate in any zone created
Chapter 93
for flood control purposes within the San Benito
County Water Conservation and Flood Control District
from 25¢ to 40c per $100 of assessed valuation of
land and improvements if the voters of the zone
approve such an increase at a special election called
by the board of directors.
SB 467 - Collier
Appropriates $7.5 million in augmentation of the
Chapter 94
Emergency Fund of the Budget Act of 1972.
#
#
#
#
#
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-15-73
#319
Governor Ronald Reagan today announced the reappointment of
Richard G. Murray of Carmel as a member of the State Board of Landscape
Architects.
Mrrray, 39 year old Republican, has been a member of the board
since 1970. His new term will expire June 1, 1977.
A landscape architect, Murray is president of the state board.
He is also a past director and former vice president of the Northern
California Chapter of the American Society of Landscape Architects,
and was on the organization's committee of Prefessional Registration
Boards of Landscape Architects.
Board members receive $28 per diem when on official business.
Address:
Post Office Box 5816
Carmel, California 93921
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi
95814
Ed Gray, Press Secretary
916-445-4571
6-15-73
#320
Governor Ronald Reagan today announced the reappointment of Mrs.
Lee Richmond of Corona and Mrs. Marie E. Haff of Burlingame as members
of the Collection Agency Advisory Board in the Department of Consumer
Affairs.
Both were named to four year terms.
Mrs. Richmond, a Republican, has been a member of the board since
July, 1971. A former finance company secretary, she is a widow with
two children.
Mrs. Haff, a Republican, is secretary-treasurer of the Associated
Credit Bureaus of California, and has been manager of the Credit Bureau
of San Mateo and Burlingame since 1954. She was first appointed to the
board in April of this year.
Board members receive $28 per diem and their necessary expenses
when on official business.
######
Mrs. Lee Richmond
Post Office Box 133
Corona, California 92118
Mrs. Marie E. Haff
708 Burlingame Avenue
Burlingame, California 94010
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
mmediate
Sacramento, Californi / 95814
Ed Gray, Press Secretary
916-445-4571
6-15-73
#321
Governor Ronald Reagan today announced the reappointment of
Mrs. Nancy C. Keating of Culver City as a member of the Physical
Therapy Examining Committee in the Department of Consumer Affairs.
Mrs. Keating, a Republican, has been a member of the committee
since 1970. Her new term will expire June 1, 1977.
She is the chief physical therapist at the California Hospital
Medical Center in Los Angeles.
Mrs. Keating is a 1949 graduate of the University of California
at Los Angeles, and received her certificate of physical therapy from
the city's Childrens Hospital.
She is a member of the American Physical Therapy Association and
the state council of the California chapters of the APTA.
Committee members receive $28 per diem when on official business.
######
Appointee's address:
5800 Green Valley Circle, Apt. 217
Culver City, California 90230
Walthall
OFFICE OF GOVERNOR RC LD REAGAN
RELEASE:
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary 95814
916-445-4571
6-15-73
#322
Governor Ronald Reagan today announced the reappointment to a
four year term of John A. Vibert of Laguna Beach as a member of the
Cemetery Board in the Department of Consumer Affairs.
The appointment requires confirmation by the state Senate.
Vibert, a 57 year old Republican, is president and general manager
of Pacific View Memorial Park in Newport Beach. He has been a member of
the Board since July, 1968.
A graduate of Stanford University, Vibert is a director and past
president of the Interment Association of California and served as
program chairman of the organization for two years. He is a past
president of the Newport Harbor Chamber of Commerce.
Board members receive $28 per diem when on official business.
####
Address:
1611 Emerald Bay
Laguna Beach, California 92651
Walthall
or RONALD REAGAN
Sacramento, California 95814
Ed Gray, Press Secre ry
916-445-4571
6-15-73
#323
Governor Ronald Reagan today announced the appointment to a
four-year term of Gregory Sells of Fresno as a member of the Vocational
Rehabilitation Appeals Board.
The appointment requires confirmation by the state Senate.
Sells, 36, an Independent, is the manager of the Rehabilitation
Counseling Department of the Leon S. Peters Rehabilitation Center in
Fresno. He is a graduate of the Kansas State Teachers College at
Emporia with a B.S. Degree in psychology, and holds a Masters Degree
in rehabilitation counseling from the University of Arizona. He
replaces Carolyn L. Vash, Ph.D., of Altadena, who has resigned.
He is the treasurer of the California Association of the Physically
Handicapped, and a member of the Advisory Board of Fresno City College.
Board members receive their actual and necessary expenses when on
official business.
#####
Address:
Gregory Sells
4040 East Dakota Street
Apt. 3
Fresno, California 93726
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
mmediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-15-73
#324
Governor Ronald Reagan today announced the reappointment to
four-year terms of Raymond K. Liner of Bakersfield and Eugene R.
Scheffer of Carmel as members of the Structural Pest Control Board in
the Department of Consumer Affairs.
They were first appointed to the board May 18, 1970.
Liner, a 50 year old Democrat, is president of Liner Pest Control
in Bakersfield. He is a member and former president of the Pest Control
Operators of California, Inc.
Scheffer, 56, a Republican, is a partner in the Ailing House Pest
Control Company in Carmel. He is a graduate of Iowa State University
at Ames, Iowa, and is a director of the Northern California Pest Control
Association.
Board members receive $28 per diem when on official business.
#####
Appointees' addresses:
Raymond K. Liner
Eugene R. Scheffer
120 Western Drive
P.O. Box 2618
Bakersfield 93309
Carmel, California 93921
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
Sacramento, California 95814
MEMO TO THE PRESS
Ed Gray, Press Secret
1
916-445-4571
6-15-73
#325
GOVERNOR'S SCHEDULE
June 18, 1973
through
June 24, 1973
Monday, June 18
11:00 a.m.
Welcoming remarks, U.S. Conference of Mayors,
St. Francis Hotel, San Francisco
Overnight - Sacramento
Tuesday, June 19
No public appointments scheduled
Overnight - Sacramento
Wednesday, June 20
2:00 p.m.
Presentation to Governor Reagan of placque expressing
appreciation for Perris Dam, by a Riverside County
Civic group. Governor's office.
2:15 p.m.
Photo with governor to publicize Old Sacramento
Days, 4th of July. Governor's office.
Overnight - Sacramento
Thursday, June 21
10:30 a.m.
Boys' State Inaugural Ceremony, California State
University at Sacramento. Remarks.
6:00 p.m.
Reception for Paul Bannai, Republican candidate in
the 67th Assembly District, Hacienda Hotel,
Los Angeles.
Overnight - Los Angeles
Friday, June 22
3:00 p.m.
American Legion Convention, Convention Center,
Anaheim. Remarks.
8:00 p.m.
Meeting of the Pacific Palisades Community Council,
Palisades Women's Club, Pacific Palisades. Remarks.
Overnight - Los Angeles
Saturday, June 23
No public appointments scheduled
Overnight - Los Angeles
Sunday, June 24
No public appointments scheduled
Overnight - Los Angeles
#####
Gray
OFFICE OF GOVERNOR R LD REAGAN
RELEASE:
mmediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#326
Governor Ronald Reagan today announced the reappointments of
Sacramento attorney George A. Jouganatos and Elk Grove sheep rancher
Howard P. Wackman, II, to the 52nd District Agricultural Association.
Jouganatos, 47, is in private law practice in Sacramento. He
has served on the board since August 19, 1971. He is a member of the
Sacramento, State and American bar associations. He is also a member
of the California and American Trial Lawyers Associations.
Wackman, 35, has served on the board since March 5, 1969. He
raises sheep and seed clover on his 1,400 acre farm in Elk Grove. He
is former president of the Sacramento County Farm Bureau and is a
former national chairman of the American Farm Bureau Federations' young
farmers and ranchers section.
Both men are Republicans and will serve four year terms. They
will receive necessary expenses.
######
Addresses:
George A. Jouganatos
Howard P. Wackman, II
5721 Carlson Drive
Route 1, Box 1547
Sacramento, California 95819
Elk Grove, California 95624
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi
95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#327
Governor Ronald Reagan today announced the reappointment of
Robert S. Nichols, D.P.M., of Vallejo to the Podiatry Examining
Committee in the Department of Consumer Affairs. He has served on the
committee since March 4, 1970.
Dr. Nichols, 51, has practiced podiatry in Vallejo since 1954.
He is past president of the California Podiatry Association and has
served on the Board of Trustees of the California College of Podiatric
Medicine.
He is married and the father of two children. He is a Republican.
He will serve a four year term and receive $28 per diem.
########
Address:
600 Marin Street
Vallejo, California 94590
Garcia
OFFICE OF GOVERNOR RO LD REAGAN
RELEASE:
Immediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#328
Governor Ronald Reagan today announced the reappointments to
four-year terms of Herbert C. Templeman, D.O., of Port Hueneme,
L. Arthur Moore, D.O., of Bakersfield, and King H. Harger, D.O., of
Valley Center to the Board of Osteopathic Examiners in the Department
of Consumer Affairs.
Dr. Templeman, 50-year-old Republican, has been a member of the
board since 1965. A graduate of the College of Osteopathic Physicians
and Surgeons in Los Angeles, he is a member of the Osteopathic Physicians
and Surgeons of California, the Ventura County Heart Association, the
Hueneme Elementary School Board, and a past president and member of the
Oxnard Community Hospital Board.
Dr. Moore, 63, is a 1940 graduate of the College of Osteopathic
Physicians and Surgeons in Los Angeles and has practiced in Bakersfield
for 28 years. A Republican, he has been a member of the board since 1969.
Dr. Harger, 63, has been a member of the board since 1968. A
Republican, he is a graduate of the College of Physicians and Surgeons
in Los Angeles. He is a member of the Osteopathic Physicians and
Surgeons of California and the California State Grange.
Board members receive $28 per diem when on official business.
#####
Appointees' addresses:
Herbert C. Templeman, D.O.
811 E. Myrna Drive
Port Hueneme 93041
L. Arthur Moore, D.O.
428 - 17th Street
Bakersfield 93301
King H. Harger, D.O.
P.O. Box 722
Valley Center 92082
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: mmediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#329
Governor Ronald Reagan today announced the reappointments of
Louis J. Tosio, Jr., of Crescent City, and Palmer Westbrook of Smith
River, to the 41st District Agricultural Association Board of Directors.
The association operates the Del Norte County Fair.
Tosio, a 50-year-old Democrat, has served on the board since
May 17, 1965. He is the owner of a supermarket and resort. He is
married and the father of three children.
Westbrook, 58, a Republican, has served on the board since
June 18, 1962. He is president of the Easter Lilies, Incorporated,
and a director of the Pacific Bulb Growers Association. He is also
past president of the Del Norte Farm Bureau. He is married and has
four children.
Board members serve four-year terms and receive necessary expenses.
#####
Appointees' addresses:
Louis J. Tosio, Jr.
Palmer Westbrook
P.O. Box 201
P.O. Box 456
Crescent City 95531
Smith River 95567
Garcia
Sacramento, California 95814
Ed Gray, Press Secre :y
916-445-4571
6-19-73
#330
Governor Ronald Reagan today announced the reappointments of
Herbert W. Chandler and Oscar W. Graeser, both of Woodland, to the
40th District Agricultural Association Board of Directors. The
association operates the Yolo County Fair.
Chandler, 51, a Republican, is the Yolo County Agricultural
Commissioner and has served on the board since June 24, 1968. He is
a former president of the Sacramento Valley Agricultural Commissioners'
Association; is a pastpresident and director of the Yolo County Federal
Credit Union; is secretary of the California Association of Weights
and Measures Officials and vice president of the United Community Fund.
Graeser, a 62-year-old Democrat, is a Woodland area real estate
developer. He has served on the board for 32 years.
Board members serve four-year terms and receive necessary expenses.
######
Appointees' addresses:
Herbert W. Chandler
Oscar W. Graeser
18 West Marshall
55 Pershing Avenue
Woodland 95695
Woodland 95695
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASF
Immediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#331
Governor Ronald Reagan today announced the reappointments of
pharmacists and businessmen David H. Garfield of San Diego and Kenneth
G. Gonsalves, of Healdsburg, to the State Board of Pharmacy. Both have
served on the board since May 18, 1970.
Garfield, 62, is a graduate of the University of Washington and
Southwestern University. He is president of Clairemont Pharmacies and
is affiliated with Clairement Rental Properties. He is a member of the
board of directors of Union Bank and a past president of the Boys Club
of San Diego and the San Diego Mental Health Association. He is married
and has two daughters.
Gonsalves, 52, is a 1948 graduate of the University of California
College of Pharmacy. He has interests in pharmacies in Healdsburg,
Santa Rosa, Sebastopol and Ukiah. He is active in numerous state and
national pharmaceutical associations. He is married and has one daughter.
Both men have been appointed to four-year terms and will receive
$28 per diem. They are Republicans.
# # # # #
Appointees' addresses:
David H. Garfield
Kenneth G. Gonsalves
1722 Colgate Circle
1224 North Fitch Mountain Road
La Jolla 92037
Healdsburg 95448
Garcia
OrriCe or COVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secret
y
916-445-4571
6-19-73
#332
Governor Ronald Reagan today announced the reappointments of
Dr. Ian Campbell, Ph.D., of San Francisco, and Joe M. Crosby of Pasadena,
to the state Board of Registration for Geologists and Geophysicists.
They have both served on the board since April 16, 1969.
Dr. Campbell, 72, a Democrat, is a retired Chief of the California
Division of Mines and Geology. He is president of the California
Academy of Sciences in San Francisco and is a recipient of the Public
Service Award from the American Association of Petroleum Geologists.
Crosby, 62, a Republican, will represent the general public on the
board. He is president and general manager of the California Liquid
Fertilizer Company in Pasadena. He was an officer and pilot in the U.S.
Army Air Corps during World War II. He is married and has two grown sons.
Board members serve four-year terms and receive $28 per diem and
expenses.
######
Appointees' addresses:
Ian Campbell, Ph.D.
Joe M. Crosby
1333 Jones Street, Apt. 906
1524 Via Del Rey
San Francisco 94109
South Pasadena, California
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
mmediate
Sacramento, Californi
95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#333
Governor Ronald Reagan today announced the reappointment to a
four-year term of R. Scott Jackson, D.V.M., of Chino, to the Board of
Examiners in Veterinary Medicine in the Department of Consumer Affairs.
Dr. Jackson, a 59-year-old political Independent, is a graduate
of Howard Payne College, Brownwood, Texas, and received his veterinarian
degree from Colorado State University at Fort Collins.
He is vice president of the Board of Examiners and a member of the
Continuing Education Committee of the California Veterinary Medicine
Association.
Dr. Jackson is a former associate professor of veterinary medicine
at Colorado State University and was a research assistant in internal
parasites of animals with the U.S. Department of Agriculture at Logan,
Utah.
Board members receive $28 per diem when on official business.
######
Appointee's address:
R. Scott Jackson, D.V.M.
J. K. Houssels
14909 Archibald Avenue
Chino 91710
OFFICE or GOVERNOR RONALD REAGAN
RELEASE:
Immediate
Sacramento, California 95814
Ed Gray, Press Secret
y
916-445-4571
6-19-73
#334
Governor Ronald Reagan today announced the reappointments of
Northridge businessman D. Gordon Meighan and Carmel attorney Eben
Whittlesey to the state Board of Guide Dogs for the Blind.
Meighan, 45, a partner in the Home Food Service Company, has served
on the board since May 20, 1971. A veteran of ten years active duty
in the U.S. Navy with an underwater demolition team, he is a recipient
of two Purple Hearts, the Presidential Unit Citation and five combat
stars. He has been active in dog obedience training programs since 1952.
He is married and has three children.
Whittlesey, 60, is a graduate of Williams College and earned his
law degree at Stanford University. A member of the board since
November 26, 1970, he will be a blind representative on the board.
Whittlesey, who is blind, was a member of the Carmel City Council from
1960 to 1972 and was Mayor from 1962 to 1964. He is married and the
father of one daughter.
Both men are Republicans and will serve four-year terms. Board
members receive $28 per diem.
######
Appointees' addresses:
D. Gordon Meighan
Eben Whittlesey
9301 Lasaine Avenue
P.O. Box 196
Northridge 91324
Carmel 93921
Garcia
OFFICE OF GOVERNOR RO LD REAGAN
RELEASE:
Immediate
Sacramento, Californi. 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
#335
Governor Ronald Reagan today announced the reappointments of
Los Angeles architects Cliff L. Burgess and Howard H. Morgridge to the
state Board of Architectural Examiners.
Burgess, 52, who operates the building design firm of Cliff Burgess
and Associates, has served on the board since June24, 1968. He is a
member and former president of the Los Angeles chapter of the American
Institute of Building Design. He represents building designers on the
board.
Morgridge, 54, a partner in the architectural firm of Powell,
Morgridge, Richards and Coghlan, has served on the board since
January 4, 1971. A graduate of the University of Southern California,
he will represent the AIA on the board. A Fellow in the American
Institute of Architects, he has won honor awards for his work on Santa
Monica City College, Corona Del Mar Elementary School and the Chancel
Church Guild of American Oneonta Congregational Church.
Both men are Republicans and will serve four-year terms. Board
members receive $28 per diem.
######
Appointees' addresses:
Cliff L. Burgess
Howard H. Morgridge
11920 Mayfield
1 Bay Island
Los Angeles 90049
Balboa, California
Garcia
or SOVENTOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secret
y
916-445-4571
6-19-73
#336
Governor Ronald Reagan today announced the reappointment to
four-year terms of Jack O. Pence, O.D., of Arroyo Grande, and
Bernhardt N. Thal, O.D., of Berkeley to the state Board of Optometry
in the Department of Consumer Affairs.
Pence, 55, is a Republican. He has served on the board since
February of 1970. He is a 1942 graduate of the University of California
at Berkeley; member of the California Optometric Association, American
Optometric Association, and a Fellow of the American Academy of
Optometry. He is also a former president of the Tri-Counties
Optometric Society.
Thal, a 55-year-old Democrat, has been a member of the board since
November, 1970. He is a graduate of Colorado State University at Fort
Collins, and received his degree in optometry in 1948 from the University
of California at Berkeley.
The founder of California Vision Services, he is a member of the
California Optometric Association and the American Optometric Association.
Board members receive $28 per diem when on official business.
######
Appointees' addresses:
Jack O. Pence, O.D.
Bernhardt N. Thal, O.D.
134 E. Branch Street
150 Lawson Road
Arroyo Grande 93420
Kensington 94707
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi 95814
Ed Gray, Press Secret
y
916-445-4571
6-19-73
#337
Governor Ronald Reagan today nominated Los Angeles Superior Court
Judge L. Thaxton Hanson to the Second District Court of Appeal to
replace Justice William P. Clark, Jr., who was elevated to the state
Supreme Court.
Judge Hanson, 52, a Republican, was appointed to the Superior
Court bench on August 3, 1968, by Governor Reagan. A native of Joliet,
Illinois, he earned his undergraduate degree in engineering at the
University of Illinois in 1947. His college education was interrupted
four years by service with the U.S. Army in World War II. As a
23-year-old captain in the Cavalry (mechanized), he saw combat action in
Europe.
He earned his J.D. degree in 1950 from the University of Michigan
law school in Ann Arbor. He again served on active duty with the Army
during the Korean War and in 1954 joined the Los Angeles law firm of
McBain & Morgan.
He joined the law firm of Schell & Delamer in 1959 and was a senior
partner when he was appointed a Superior Court judge in 1968. He is a
graduate of the California College of Trial Judges, U.C. Berkeley, and
the National College of State Trial Judges, University of Nevada.
Justice Hanson, whose father was a lawyer, is married to the former
Evelynne Rasmussen. He is active in numerous professional, civic and
fraternal organizations and was a founder and former chairman of the
San Fernando Valley Business and Professional Association.
As an associate justice of the Court of Appeal, he will receive an
annual salary of $43,672.
#######
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
MEMO TO THE PRESS
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-19-73
Mrs. Ronald Reagan will show the State of California display
case to former POWs Master Sargeant James Gough, USAF, and Captain
Thomas Hanton, USAF, on Wednesday (6/20) at 10:45 a.m. in the capitol
corridor. The case has bracelets and photos of returning California
POWs and is another welcome home gesture by the State of California to
all ex-POWs.
Press coverage is invited.
####
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
Sacramento, Californi
95814
MEMO TO THE PRESS
Ed Gray, Press Secret
y
916-445-4571
6-20-73
Governor Reagan will hold a press conference in Room 1190, in
the state Capitol, on Thursday, June 28, at 10:30 a.m.
######
Walthall
or
COVERNOR
REAGAN
MEMO TO THE PRESS
Sacramento, California 95814
Ed Gray, Press Secret
From:
ernor's Press Office
916-445-4571
6-20-73
#338
It is clear that the so-called analysis of Governor Reagan's revenue
control and tax reduction program by Assembly Speaker Moretti's top
lieutenant, Mr. Hauck,
is politically motivated and was designed to
reflect the personal views of the assembly speaker.
As such, it is nothing more than a self-serving effort to gain
publicity for Mr. Moretti's own prejudices against the governor's proposal
Any person seriously wishing to analyze Governor Reagan's proposed
constitutional amendment cannot fail to understand the basic purpose of
the document, prepared by the speaker's own staff: to confuse the
people with spurious allegations and statistics and divert attention from
the heart of the principal issue facing the people---shall the
uncontrolled growth of government be allowed to continue at the expense
of the taxpayers?
Governor Reagan's answer is No; Speaker Moretti says Yes.
There is no reason to assume that the increasing take by government
from the taxpayers' earnings which has occurred in the past will change
in the future unless a limit is established in the constitution to control
future runaway government spending.
A good example is the fact that there are now nearly a billion
dollars in additional spending proposals before the legislature which
would literally eat up any return of the current state surplus to the
taxpayers. And, these bills presumably would fund programs on an ongoing
basis out of a one-time surplus which will not be available in the future.
Where will the money come from to continue these proposed spending
programs when such a surplus is not available in the coming years?
Out of the taxpayers' pockets, of course:
Mr. Hauck's analysis is based upon two fallacious assumptions:
California's economy has no more growth potential, and
-left to its own devices, somehow state government will become less
greedy in the future for the people's money.
There is no historical evidence to support either assumption. In
fact all the historical evidence contradicts both assumptions.
The projections of the governor as to the savings to a family of
four, which will accrue from his proposed tax limitation program, are
based on the hard facts of history.
- 1 -
#338
Mr. Hauck's so-called analysis obviously was prepared hastily and
for the sole purpose of confusing the people about the real issues
addressed by the governor's proposal. The Hauck document again shows
Speaker Moretti's failure to come to grips with the basic elements of
the revenue control and tax reduction program. On the other hand,
literally months were spent by the governor's tax reduction task force,
many leading economists and the governor's cabinet and staff, in both
researching and formulating the proposed constitutional amendment.
If Mr. Moretti is really sincere in his promise not to increase
taxes in the next five years, he should be the first in line to vote
for the tax limitation initiative November 6.
Attached is an immediate response to the five summary allegations
in Mr. Hauck's 17-page analysis, as well as a report to the governor
from his task force on tax reduction which cites examples of tax savings
to a number of model California families which will occur during the
next 15 years if Governor Reagan's tax limitation proposal is approved
by the people later this year.
(Governor Reagan has seen and approved this press office statement).
######
Gray
I I 2
Here are Mr. Hauck's five summaryallegations and the governor's office
responses to them:
(1)
ALLEGATION: The expenditure limitation plan does not guarantee
that the net state-local tax burden of the typical
family will be reduced. In fact, because of possible
increases in tuition and local sales and property
tax increases, the net state-local tax burden of the
typical family may increase.
(1) RESPONSE:
The mechanics of the governor's revenue control and
tax reduction program require that state tax rates
be reduced by 20 percent over a 15-year period. The program has built-
in guarantees against future property tax increases and against state
government forcing increased costs on local entities. Educational costs
in California cannot possibly continue to increase at historic rates
in view of decreasing school populations. The legislative analyst has,
in fact, so admitted this in his analysis of the governor's program.
The University of California and the state university system are
finding they must actively recruit new students in order to maintain
their quotas. Mr. Hauck's prediction of increased tuition therefore
assumes that the state will support publicly financed higher educational
facilities that are too big for the number of students it can draw.
Thus, the charge that the program does not guarantee a decrease in the
tax burden on the typical family is preposterous.
(2)
ALLEGATION: To receive $804 in state tax savings in the first
four years of the plan as claimed by the governor,
the "average family" would have to earn annually
$35,000. Such a family ranks in the top 4 percent
family income bracket according to the 1970 Census.
(2) RESPONSE:
Mr. Hauck has neglected to count many of the taxes
which affect an average family in California and
which are controlled by the governor's program. He has also attempted
to obfuscate what an average family is by defining what he considers
to be a typical family. We analyzed 24 "typical" families using average
income VS. median income, differences in children's ages, and differences
in other pertinent family circumstances, such as home ownership and
ownership of items producing capital gains. The average family income
in California is presently slightly in excess of $15,000, whereas the
median income is around $12,000. A family of four with an average
income of $15,000 and two children ten years old which owns a home with
a value of $20,000 and has no capital gains will realize a cumulative
savings of $24,019 over the 15-year period of the program. If we con-
sider a family with a median income, again with two children ten years
old and home worth $20,000, the cumulative savings would be $18,551
during the same period.
There is, therefore, no basis for this assertion that an "average
family" would have to earn annually $35,000 to realize the savings
claimed by the governor.
(3)
ALLEGATION: The 1970 Census indicates that the typical California
family earns about $13,000. This family will receive
about $140 in state tax savings over the first four
years of the plan. This is one-sixth the amount
claimed by the governor.
(3) RESPONSE:
Mr. Hauck's estimate of tax savings totally disregards
both the history of California's economic and govern-
ment growth and the wording of the constitutional amendment itself since
the amendment will require either tax rate reductions or direct refunds
to California's taxpayers.
Either through tax reductions or tax refunds, the average California
family will realize a $72 savings in the first year, $152 savings in
the second year, $240 savings in the third year and $340 in the fourth
year.
-1-
With the limitation in effect, excess revenues could be used to
further decrease sales taxes, reduce gasoline taxes, decrease the cost
of business licenses, further decrease state income taxes or any combin-
ation of these and other taxes. Furthermore, if the legislature does
not choose to reduce taxes, the excess revenues must be refunded directly
to the taxpayers.
Therefore, his later statement that "tax savings resulting from
state expenditure limitation in the first year will derive solely from
the permanent 7½ percent income tax credit" is absurd.
(4) ALLEGATION: Projecting personal income and state revenues fifteen
years into the future is highly speculative. When more
realistic near-future projections are used, the tax
savings claim of the governor bears no relation to
fact. Therefore, the $17,000 tax savings claim
appears to be grossly exaggerated and a misrepresenta-
tion of economic and fiscal realities.
(4) RESPONSE:
Mr. Hauck and the Assembly Speaker do not appear to
believe that the State of California will continue to
prosper. They therefore purposely disregard the historic growth of
California in favor of pessimistic projections of California's economic
growth over the next 15 years. To the extent that the inordinate growth
of California government in itself has slowed California's economic
growth as most economists believe, the revenue control and tax reduction
program should, if anything, result in greater economic potential in
the future, in which case the governor's $17,000 tax savings claim for
a family of four is conservative.
(5)
ALLEGATION: The typical family will lose 22 percent of any state
tax savings to the federal government in the form of
higher federal income taxes. Between 30 percent and
40 percent of the total of any state tax savings will
be lost to the federal government.
(5) RESPONSE:
Mr. Hauck apparently assumes that all reductions in
state taxes resulting from the governor's program
will be reductions to the income tax, which obviously will not be the
case, and he further assumes that California's "typical" family itemizes
its deductions, which is purely a subjective assumption.
Further, Mr. Hauck is projecting higher federal taxes presumably
on the basis that higher taxes are inevitable. One of the dramatic
effects of the governor's revenue control and tax reduction program,
if passed by the people next fall, will be to put all government
officials--federal, state and local--on notice that the people want,
need and are demanding a lower tax burden.
# # #
-2-
State of California
Memorandum
To
:
Governor Ronald Reagan
Date :
June 1, 1973
Subject:
From :
Governor's Task Force on Tax Reduction
Opponents of your Revenue Control and Tax Reduction Plan have
criticized the program for crediting cumulative savings to an average
California family of four of $17,756 for the 15 year duration of the
program. The data that produced this result are in Figure 6, Table
6 and applicable footnotes in the Blue Book on the program. As
stated there, the savings are based upon four per capita shares of
the difference in tax burden with and without the Tax Reduction
Amendment.
In order to verify the accuracy and appropriateness of Table 6
in the Blue Book, we have analyzed several "average families" as to
income, children's ages, home ownership, and presence or absence of
capital gains income. The attached chart presents the cumulative
savings under the tax program for 24 such families.
The median family income in California is, by latest estimate
of the Department of Finance, $11,450. However, in our earlier
computations we used the $11,000 figure. There is a considerable
difference between median income and average income. The average
family income in California this year, again as estimated by the
Department of Finance, is $14,859. Neither the median income nor
the average income figures include distribution of capital gains
-1-
Governor Reagan
-2-
June 1, 1973
attributable to Calif ornians, nor do these income figures consider the
capital accumulation normally adhering to a homeowner as he makes his
mortgage payments. To determine average capital gains we divided total
capital gains attributable to Californians by the number of California
families. As you can see from the attached chart, the figure is small
($559 per family) and, therefore, relatively insignificant in computa-
tions of savings with the tax amendment. We attributed $2,000 per
year to each family owning a home. This could be considered either
the rental value or the average capital cumulation amount for a home
with a present resale value of $20,000.
In looking at the impact of the Tax Reduction Amendment on any family
over a 15 year period, the age of the children is a critical factor in
determining both total family income and cumulative savings under the
amendment. In our analysis we have assumed two children and, as indicated
on the chart, have varied their ages from 5 to 10 to 15 to show the
difference in impact dependent upon age. We have assumed that when a
child reaches the age of 21 he will add 1/2 of either an average or median
family income to the income of that family.
The following six cases highlight the range of effects of the Tax
Reduction Amendment based upon our income analyses:
A.
(#11 on attached chart) Average income, 2 children aged 10, renter,
no capital gains = $21,177 cumulative savings.
B.
(#3 on attached chart) Average income, 2 children aged 15, homeowner,
capital gains ($559) = $28,445 cumulative savings.
C.
(#10 on attached chart) Average income, 2 children aged 5, renter,
no capital gains = $12,576 cumulative savings.
Governor Reagan
-3-
June 1, 1973
D.
(#23 on attached chart) Median income, 2 children aged 10, renter,
no capital gains = $15,600 cumulative savings.
E.
(#15 on attached chart) Median income, 2 children aged 15, homeowner,
capital gains ($559) = $22,145 cumulative savings.
F.
(#22 on attached chart) Median income, 2 children aged 5, renter,
no capital gains = $9,061 cumulative savings.
In our opinion the "average average" family is represented on the
attached chart by either #5 ($24,019 savings based upon average income)
or #17 ($18,551 cumulative savings based upon median income). In any
event, this analysis clearly indicates the validity of the original data
in the Blue Book and the accuracy of our contentions as to actual savings
to California families if the Tax Reduction Amendment is enacted.
PROJECTED TAX SAVINGS UNDER
GOVERNOR REAGAN'S REVENUE CONTROL & TAX REDUCTION PROGRAM
FOR 24 "TYPICAL" CALIFORNIA FAMILIES
Average Age of
Home
Capital
Cumulative
No.
Income
2 Children
Owner
Gains ($599)
Tax Savings
No.
1
*Average Income
5
Yes
Yes
$ 14,742
1
2
Average Income
10
Yes
Yes
24,828
2
3
Average Income
15
Yes
Yes
28,445
3
4
Average Income
5
Yes
No
14,256
4
5
Average Income
10
Yes
No
24,019
5
6
Average Income
15
Yes
No
27,518
6
7
Average Income
5
No
Yes
13,092
7
8
Average Income
10
No
Yes
22,020
8
9
Average Income
15
No
Yes
25,229
9
10
Average Income
5
No
No
12,576
10
11
Average Income
10
No
No
21,177
11
12
Average Income
15
No
No
24,263
12
13 **Median Income
5
Yes
Yes
11,582
13
14
Median Income
10
Yes
Yes
19,437
14
15
Median Income
15
Yes
Yes
22,145
15
16
Median Income
5
Yes
No
10,833
16
17
Median Income
10
Yes
No
18,551
17
18
Median Income
15
Yes
No
21,252
18
19
Median Income
5
No
Yes
9,780
19
20
Median Income
10
No
Yes
16,471
20
21
Median Income
15
No
Yes
18,868
21
22
Median Income
5
No
No
9,061
22
23
Median Income
10
No
No
15,600
23
24
Median Income
15
No
No
17,884
24
*$14,859
**$11,000
OFFICE OF GOVERNOR R NALD REAGAN
RELEASE
Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-20-73
#339
Governor Ronald Reagan has proposed that the State of California
spend the expected $107,362,918 in general revenue sharing funds
allocated for the first six months of 1973 I on the following item:
To be transferred from the State Revenue Sharing Trust Fund
to the General Fund for transfer to the State School Fund
for expenditure in 1973-74 for local schools.
A detailed account of the State of California's planned use of
revenue sharing funds will appear in the Los Angeles Times and San
Francisco Chronicle on June 20, 1973. Records documenting the plan are
open to public inspection at the California State Department of Finance
in
Sacramento. Publication of such a plan, in addition to a subsequent
actual use of funds report, is required by the State and Local Fiscal
Assistance Act of 1972, which authorize revenue sharing.
General revenue sharing is a $30.2 billion, five-year program
which returns a portion of federal taxes to state and local governments.
The unique feature of the program is that it allows state and local
officials to decide how their jurisdiction's funds are to be spent
within broad federal guidelines.
This press release is required by U.S. Treasury regulation
P 51.13(b) as a requirement for compliance with the federal revenue
sharing act of 1972.
The information in the release is not new, and has been publicly
discussed by the governor in the past. It ties in with the budget,
and SB 238 (Lagomarsino) which is the governor's bill dealing with the
$850 million surplus.
A xerox of the Treasury regulation is also attached which indicates
distribution of this release to news media, "including minority and
bilingual news media."
# # #
Gray
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-21-73
#340
Governor Ronald Reagan today announced the appointment of Mrs.
John (Betty) Emery of Fullerton as a member of the California Advisory
Board to the Bureau of Employment Agencies in the Department of Consumer
Affairs.
Governor Reagan also announced the reappointment to the Board of
Robert W. Stuart of San Rafael. Both terms are for four years.
A resident of Fullerton for 25 years, Mrs. Emery is a graduate of
the Argubright School of Business, Battle Creek, Michigan, and attended
the University of California at Berkeley majoring in business and
marketing.
She is the former owner of a dry cleaning and laundry firm in
Fullerton. She is a former president of the Hermosa Drive P.T.A.,
co-founder of the Hermosa Community Library, and a member of the Ways
and Means Committee of the Children's Hospital of Orange County.
Mrs. Emery, a Republican, replaces Charles M. Canning of Maywood.
His term has expired.
Stuart, 50, a political independent, is retired. He is a former
assistant director of security for a department store chain in northern
California.
Board members receive $28 per diem when on official business.
# # #
Addresses:
Robert W. Stuart
Betty C. Emery
891 Las Ovejas Avenue
2812 Sunny Wood Drive
San Rafael, California 94903
Fullerton, California
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-21-73
#241
Governor Ronald Reagan today announced the appointment of Escondido
Councilwoman Lorraine H. Boyce (Mrs. William D. Boyce) to replace
Salvadore R. Flores, Ph.D., of Chula Vista, to the Child Development
Program Advisory Committee. Dr. Flores resigned.
Mrs. Boyce, a Republican, is a graduate of the University of
Southern California School of Nursing and is also a certified teacher
in adult education. She is married to a surgeon and they have six adult
children, four natural and two adopted.
She is a member of the Child Development Advisory Committee for
Escondido Elementary School District and is an instructor-trainer in
water safety and child and maternal care classes for the American Red
Cross. She is an active leader in the First Congregational Church of
Escondido and also is a member of numerous civic and service organizations.
Committee members serve at the pleasure of the governor and receive
necessary expenses.
#####
Address:
106 South Grape Street
Escondido, California
Garcia
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE:
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-21-73
#342
Governor Ronald Reagan today announced the following bills have been signed:
AB
147
-
Burke Makes changes in the law relating to legal services
Chapter 105
provided to county committees on school district
reorganization.
AB 274 - Murphy Sets the fee for a permit to operate a temporary trailer
Chapter 98
park at $25, with no additional fee for the lots. The
bill also authorizes the appropriate enforcement agency
to determine the fees for construction, mechanical and
electrical installations in temporary trailer parks, for
each project, the determination to be based on the cost o:
administration and enforcement, including the cost of
determining the amount of fees to be charged.
AB 463 -Hayden
Amends the Vocational Nursing Practice Act by providing
Chapter 106
for renewal of licenses every two years in accordance with
licensees' birth dates rather than requiring renewal of
all licenses on July 31 of each even-numbered year.
AB 479 - Wood
Permits exclusion of part-time employees of public
Chapter 107
agencies, other than school districts, from the federal
social security system and requires member contributions
to be paid for prior service included under the federal
system.
AB 675 - Dixon
Reduces from more than five years to more than three years
Chapter 108
the length of time a coroner must retain the official file
for each deceased person before photocopying the contents
of the file.
AB 880 - Thurman
Validates the sale of certain surplus school sites by
Chapter 109
the Ripon Unified School District.
SB 161-Nejedly
Amends the County Employees' Retirement Law of 1937 to
Chapter 99
restrict application of a single rate of contribution
established by the county retirement board to persons
becoming members after the rate is made operative in the county.
SB 248 - Mills
Authorizes the Director of Finance to enter into an agree.
Chapter 97
ment with the State Race Track Leasing Commission and the
22nd District Agricultural Association to advance moneys,
as a loan, for the construction of improvements at Del
Mar Race Track. The bill appropriates $1,300,000 for the construction of
such improvements.
SB 282 -Alquist Permits the Superintendent of Public Instruction to exempt
Chapter 100
a limited number of school districts from kindergarten
class size and reporting requirements.
SB
303
-Grunsky Establishes specified criteria to be considered by the
Chapter 101
court in determining reasonable compensation and neces-
sary expenses to be paid court-appointed counsel.
SB 320-Lagomarsino
Requires the Board of Administration of the Public
Chapter 110
Employees' Retirement System upon request of any
public agency, other than school districts, after an
affirmative, secret vote of the majority of employees affected, to execute
a modification excluding coverage of part-time positions under social security.
SB 348 -Rodda
Authorizes the Superintendent of Public Instruction to
Chapter 102
increase from one to not more than five, the number of
school district pilot programs to determine the feasibilit
of extending greater flexibility to students in outside class experience.
SB 441 - Rodda
Appropriates $110,000 from the General Fund to the
Chapter 103
Department of Parks and Recreation for purposes of
archaeological exploration of the proposed site of the
new Governor's mansion. The bill further provides that
human skeletal remains found by the archaeological
exploration shall be reburied in a proper location but
not under presently planned future structures.
SB 471 - Alquist Appropriates $300.000 to the Department of Justice to
Chapter 104
settle the claim of David Anderson against the State of
California.
#####
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-21-73
#343
Governor Ronald Reagan today hailed the U.S. Supreme Court's
decision on obscenity and hard-core pornography.
In a statement, he said:
"This decision is one of the most important rulings to be made
by the U.S. Supreme Court in recent years. And, while it is long overdue,
I am extremely gratified and pleased that a majority of the court has
concurred in the absolute necessity of helping local communities to rid
themselves of the corrupting influence of hard-core pornography.
"While we have not yet had an opportunity to study the decision in
detail, it appears that the ruling will grant the states and local
communities the authority they have been seeking to move against
obscenity and hard-core pornography. The realistic guidelines which
have now been established by the court will return to the local
communities the right to establish their own standards for determining
whether such material is obscene, and will enable courts and juries to
deal with the problem without being subjected to the vague and confusing
constitutional interpretations of recent years.
"In effect, local communities themselves, and their courts, may now
determine whether such material has serious literary and artistic value
or whether it amounts to sheer filth as is most often the case.
"We can only hope and pray that this decision will go a long way
toward reversing the trend toward permissiveness in America. For, as the
majority of the justices must have recognized, the lessons of history
clearly show that any free, civilized society which does not impose upon
itself reasonable restraints in this area will not long endure,
"Pornography is a disease which can only corrupt the moral fiber,
strength, stability and vitality of a free people. Fortunately, the
court appears to have returned to the communities of our nation the tools
they need to halt the spread of this disease."
######
Gray
OFFICE OF GOVERNOR R ALD REAGAN
RELEASE:
mediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-21-73
#344
Governor Ronald Reagan today signed legislation (SB 441-Rodda)
appropriating $110,000 for the archaeological exploration of the
proposed site of the new governor's mansion I in Carmichael and to
provide for the reburial of any skeletal remains found on the property.
"I am happy to sign this measure, = Governor Reagan said, "because
it provides money not only for the exploration of the site but for
the landscaping of a suitable area to rebury any human skeletal remains
found. This will include proper marking of graves and, I believe, will
uphold the dignity of the Indians who may be buried there."
The area is designated in a University of California Archaeological
Survey as the site of a prehistoric Indian village.
######
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
Sacramento, Californ
95814
MEMO 1 THE PRESS
Ed Gray, Press Secretary
916-445-4571
6-22,-73
#345
GOVERNOR'S SCHEDULE
June 25, 1973
through
July 1, 1973
Monday, June 25
10:30 a.m.
Transportation Symposium, Sheraton Universal Hotel,
Los Angeles. Remarks.
Overnight - Sacramento
Tuesday, June 26
No public appointments scheduled
Overnight - Sacramento
Wednesday, June 27
7:30 p.m.
Fundraising dinner for Doug Carter, Republican
candidate in the 12th Assembly District, Civic
Auditorium, Stockton. Brief remarks.
Overnight - Sacramento
Thursday, June 28
10:30 a.m.
PRESS CONFERENCE
Overnight - Sacramento
Friday, June 29
9:30 a.m.
Brief appearance at the State Convention of the
California State Aerie and the California State
Auxiliary, Fraternal Order of Eagles, Sacramento
Memorial Auditorium. Brief remarks.
Overnight - Sacramento
Saturday, June 30
No public appointments scheduled
Overnight - Sacramento
Sunday, July 1
No public appointments scheduled
Overnight - Sacramento
######
Gray
OFFICE OF GOVERNOR RONALD REAGAN
MEMO TO THE PRESS
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-26-73
Governor Reagan will announce what action he will
take on reapportionment legislation now awaiting his
June
signature or veto, tomorrow, 27, at 10 a.m. in the
governor's council room.
We are asking that questions from newsmen be
tomorrow
limited to the subject of reapportionment/(immediately
following the governor's reapportionment announcement),
because the governor has scheduled a general news
conference for the Capitol Press Corps on Thursday,
28, at 10:30 a.m. in Room 1190.
June
# # #
Gray
OFFICE OF GOVERNOR RONALD REAGAN
MEMO TO THE PRESS
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-26-73
C-O-R-R-E-C-T-I-O-N - Memo to the Press dated today:
Action on reapportionment legislation by the
governor will occur June 27 (not July 27). The
general news conference is June 28 (not July 28).
Sorry!
# # #
Gray
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-26-73
#346
County registrars around the state have now filed a sufficient
number of certificated, valid signatures with the Office of Secretary
of State Edmund G. Brown Jr. to qualify Governor Reagan's revenue
control and tax reduction initiative constitutional amendment for a
special statewide election November 6, the governor's office announced
today.
By midafternoon today the county registrars had filed a total of
523,954 valid signatures with the Secretary of State and an additional
42,572 signatures were expected to be filed with Brown's office by late
in the afternoon. This would bring the total filing of certificated
signatures thus far by the county registrars to 566,526.
Governor Reagan will call a special statewide election for
November 6, to allow Californians to vote on the initiative constitu-
tional amendment, as soon as the Secretary of State confirms that the
plan has qualified. That confirmation is expected today or tomorrow.
520,806 valid signatures were required.
The governor issued the following statement when he learned that
the 523,954 signatures had been filed with the Secretary of State's
office:
"I am very pleased and proud that our revenue control and tax
reduction initiative has now qualified for the statewide ballot. The
public acceptance and response has been magnificent, as has been the
diligence of thousands of volunteers all over California.
"The bipartisan citizens' committee, Californians for Lower Taxes,
broke all records for speed in qualifying this initiative. Never before
has a proposal been actually certified and qualified even before the
initial mandatory filing date.
"It is a proud moment for all Californians--especially those who
accepted the challenge and responded with such speed and determination.
And, I think it reflects their deep concern about the increasing tax
surden being imposed on them by government.
"The polling booth is the place where such decisions belong. The
people themselves should decide whether the growth of government is to
be slowed to a reasonable pace or whether runaway government spending is
to continue to take an ever larger share of their earnings in taxes in
the years ahead. So that the people can make this decision I am calling
a special election, the first statewide special election in recent
history, for next November 6."
# # #
Gray
OFFICE OF GOVERNOR RO ALD REAGAN.
RELEASE: Immediate
Sacramento, Californ. 95814
Ed Gray, Press Secretary
916-445-4571
6-26-73
#347
Governor Ronald Reagan today issued a special statewide election
proclamation which officially places his revenue control and tax
reduction initiative Constitutional amendment on the November 6 ballot.
Here is the text of the proclamation:
"I, RONALD REAGAN, Governor of the State of California, pursuant
to Sections 2601 and 3508 of the Elections Code, and Section 22 (c) of
Article IV of the California Constitution, hereby proclaim and order
that a special statewide election be held on the sixth day of November,
1973, to submit to the qualified voters of the State of California the
following initiative measure:
"TAX AND EXPENDITURE LIMITATIONS. Initiative Constitutional
Amendment. Limits state expenditures; restricts use of defined surplus
revenue to tax reductions, refunds, or emergencies. Eliminates personal
income tax for lower income persons; reduces others' 1973 or 1974 tax up
to 20 percent, from surplus, and subsequent year rates 7½ percent.
Requires two-thirds legislative vote for new or changed state taxes.
Limits local property tax rates except school districts'. Requires state
funding of new programs mandated to local governments. Provides for tax
and expenditure limit adjustments when functions transferred. Contains
special indebtedness obligation provisions. Allows local tax rate and
expenditure limit increases upon voter approval. If the proposed
initiative is adopted undefined additional financing from state sources
in the approximate amount of Five Hundred Sixty Eight Thousand dollars
($568,000) on a one-time basis and Two Hundred Thirty Six Thousand
dollars ($236,000) annually thereafter will be required for state
administrative costs.
"And I do hereby offer a reward of one hundred dollars ($100) for
the arrest and conviction of any person who violates any of the
provisions of Division 15 of the Elections Code; the rewards to be paid
until the total amount hereafter expended for the purpose reaches the
sum of ten thousand dollars ($10,000).
"IN WITNESS WHEREOF, I have hereunto set my hand and caused the
Great Seal of the State of California to be affixed this 26th day of
June, 1973."
Governor of California
#######
Gray
OFFICE OF
NOR F
ALD REAGAN
RELEAS
IMMEDIATE
Sacramento, Californ. 95814
Ed Gray, Press Secretary
916-445-4571
6-27-73
#348
Zenovich
Governor Ronald Reagan today said he is vetoing SB 195, the
legislation which lumps Assembly, Senate and Congressional Reapportion-
ment plans together in one bill. In announcing his veto the governor
said:
"The real purpose of reapportionment should be to assure the people
of proper representation based on community of interest. I realize that
reapportionment is a difficult and complex matter and that probably no
plan can ever be devised satisfactory to all our people in every area.
I realize too the legitimate claim of incumbents who have won election,
to a measure of consideration when district lines are drawn.
"The three bills submitted to me a year and a half ago did not meet
the beforementioned criteria and were vetoed by me on December 30, 1971.
At that time I submitted to the legislature a list of suggestions for
making those reapportionment plans acceptable. A number of legislators
expressed agreement with my vetoes and with the proposed changes.
"Changes were made in the Senate plan and had it been sent to my
desk as a separate piece of legislation I would have signed it. Though
somewhat less than perfect, it did represent a sincere, bipartisan effort
to achieve fair reapportionment. Unfortunately, the Assembly, Senate
and Congressional plans were lumped into one bill, SB 195, giving me
only the choice of signing all or none.
"Today, therefore, I am sending a veto message to the legislature.
This message makes it plain that while I could have signed the Senate
plan, the proposed redistricting of the Assembly is in such violation of
the basic principle of reapportionment I have no choice but to veto the
entire bill.
"Here are some of the examples which can only be described as
outright gerrymanders:
2nd Assembly District
A long finger reaches up the coast more than 200 miles, all the
way from Santa Rosa to Eureka. Apparently one consideration was to in-
clude the campus community of Humboldt State College.
18th and 19th Assembly Districts
These districts are contrived for no valid reason and are a gross
example of gerrymandering. You will notice that the 19th Assembly
District is tied together by a narrow strand of sand,
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#348
29th Assembly District
This district stretches through five separate counties all the way
from Taft until it slivers into San Jose. The mileage alone--200 miles--
between the extreme ends of this district obviate any community of
interest.
33rd Assembly District
This district includes both mountain and valley areas and results
in an extremely odd configuration almost totally surrounding Fresno,
with a strange, thin sliver stretching north from near Madera almost up
to Turlock.
14th Assembly District
This district stretches from Orange and Riverside counties on the
south near Corona, up to Barstow and the desert on the east, and all
the way across to the Santa Barbara and San Luis Obispo county lines
on the west.
49th Assembly District
The 49th Assembly District loops around the 50th with only a narrow
corridor linking the major sections of the district.
54th Assembly District
This district stretches from Los Angeles and South Pasadena on
the west in an odd configuration all the way to the Covina-Glendora area
on the east.
76th, 78th, 79th and 80th Assembly Districts
These San Diego county districts are all examples of the art of
gerrymander and simply cannot be justified on any rational grounds.
You will note that the city of La Mesa, with a population of less than
40,000, has been intersected and divided among all four districts. You
will wish to give special attention, I'm sure, to the 80th District
lines which have been drawn to surround the 76th and, which cut through
the heart of La Mesa in a narrow corridor up into another area which is
completely surrounded by the 78th and 76th.
69th Assembly District
This is possibly the worst example of deliberate gerrymandering in
the history of California, if not the history of the United States.
It is the so-called Corey-dor which was drawn with only one purpose in
mind: to insure continued incumbency.
# # #
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Gray
OFFICE OF GOVERNOR R ALD REAGAN
RELEASE: 1 ediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-27-73
#349
Governor Ronald Reagan today vetoed SB 195, legislation which
lumps assembly, senate, and congressional reapportionment plans together
in one bill.
Here is the text of the governor's veto message to the legislature:
"I am returning without my signature Senate Bill No. 195 of the
1973 regular session entitled 'An Act to Repeal and Add Chapter 1
(Commencing with Section 300000), Chapter 2 (Commencing with Section
30100), and Chapter 3 (Commencing with Section 30200) of Division 16
of the Elections Code, relating to Reapportionment.'
"The legitimate goals of reapportionment should be to achieve
fair and equal representation in the legislature and in congress for
all the people of California and to improve the capacity of our legisla-
tors to represent their constituents. So called 'gerrymandering' based
on political or racial considerations is inconsistent with those goals.
Instead of allowing such motives to distort the districting process,
I believe the legislature should adhere consistently to such criteria as
relative equality of population, compactness, preservation of local
boundaries and communities of interest, and other factors which would
result in districts which preserve and enhance the quality of legislative
representation.
"My vetoes of the redistricting plans in December, 1971, were
based on lack of regard for these principles. Because the proposed
Congressional and Assembly districting measures contain no substantial
improvements over the 1971 proposals (indeed, many districts are even
less defensible), I am once again impelled, in the interests of equal
and effective representation, to veto the legislature's attempts at
reapportionment.
"The Senate districts set forth in Senate Bill 195, however, have
been improved since 1971. They are not subject in the same degree to
the criticisms of the Congressional and Assembly districts and, if I
had received a separate bill proposing establishment of these Senate
districts, I would have signed it because of the Senate's honest effort
during recent months to improve the districts. This effort was an
enlightened one in that it utilized population variations permitted in
the recent Virginia decision to reach its goal. On the contrary, the
Assembly district portions of the bill took no cognizance of this
decision.
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#349
DISCUSSION OF "CRITERIA" FOR REDISTRICTING
"The principle that the legislature should be guided by standards
or criteria in reapportioning itself and the State's Congressional
districts has a long history. Article IV, Section 6 of the California
Constitution, adopted in 1926, provided in part as follows:
Such districts shall be composed of contiguous territory,
and assembly districts shall be as nearly equal in population
as may be
In the formation of assembly districts no county,
or city and county, shall be divided, unless it contains
sufficient population within itself to form two or more districts,
nor shall a part of any county, or of any city and county,
be united with any other county, or city and county, in forming
any assembly or senatorial district.'
Article IV, Section 27 of the California Constitution contains similar
provisions for Congressional districts.
"During the mid-1960's, the United States Supreme Court adopted
the rule that the paramount consideration which should govern State
Legislatures in redistricting themselves was the achievement of
population equality between districts. Now, in the case of Mahan V.
Howell, 410 U.S. 315, 1973, the United States Supreme Court has relaxed
this cold mathematical rule where state legislative, as distinguished
from congressional, districting is concerned. Specifically, it held that
the Virginia Legislature, in drawing a redistricting plan for the lower
house which respected the boundaries of local governmental subdivisions,
was permitted greater flexibility in population deviation between the
districts. Other decisionsof the United States Supreme Court have struck
down racial gerrymanders.
"The California Legislature has set forth in Government Code
Section 25001 the criteria which should be followed in reapportioning
county supervisorial districts. That section provides that the boards
may consider, in addition to equality of population, the following:
1
(a) topography, (b) geography, (c) cohesiveness, contiguity,
integrity, and compactness of territory, and (d) community of
interest of the districts.'
"With the recent Mahan decision further confirming the language of
the California Constitution and of my veto messages of January, 1972, I
wish to reemphasize criteria which should be considered as a basis for
a fair and equal redistricting. These are as follows:
"1. Districts should be as nearly equal in population as possible.
"2. Districts should be as compact as possible and provide easy
accessibility between different areas in the districts.
"3. Districts should be composed of contiguous territory.
"4. District lines should follow existing county and city
boundaries where possible.
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#349
"5.
Districts should be composed of communities which share
common historical, geographical, topographic, cultural, and other
interests.
"6. District lines should be drawn solely with regard to the
above criteria and without regard to race or ethnic background. District
boundaries should not attempt to exclude or include particular ethnic
or racial minorities in one constituency to dilute the voting strength
of such minorities, and when such minorities exist in large communities,
those communities should not be carved up among several districts in
order to proctect incumbents of another race or ethnic background.
"These principles improve citizen access and identification with
their elected representatives, facilitate communications of representa-
tives with their constituents, and reduce the costs of campaigns. More-
over, these criteria preclude meandering lines which reach out in order
to attach portions of other communities which may be many miles away and
separated from the heart of the district by mountain ranges or large
expanses of unpopulated territory, In summary, such criteria,
consistently applied, will produce districts which are fair to all
Californians and which enhance rather than impair the representative
process.
EXAMPLES OF FAILURE OF PLANS CONTAINED IN S.B. 195 TO MEET CRITERIA.
LACK OF EQUALITY OF POPULATION
"Despite some minor changes in the lines in some of the districts
in the Congressional plan, presumably to achieve greater equality than
the Assembly Bill 16 plan, 22 of the districts are unchanged by S.B.
195, and several of these still deviate from the equality of population
a good-faith effort could easily have achieved. Indeed, the difference
between the smallest unchanged district and the largest exceeds 3,000
persons.
Even some of the altered districts are still deficient in this
respect. In the case of the 21st district, territory was added even
though the district was already overpopulated. In enother instance,
several counties were combined to form three districts (the 1st, 5th and
6th districts), but the combined populations of these counties are more
than 2,000 short of the number of persons required for three full district
Such deviations from equality diminish equal representation for the
citizens in overpopulated districts.
LACK OF COMPACTNESS AND DIFFICULTY OF ACCESS
Examples of flagrant disregard for the interests of compactness
and ease of access are legion.
-3-
#349
"/Congressional
District 17 begins at Hillsborough in the central part of San Mateo
County and runs a long and narrow corridor deep into Santa Clara County,
through the city of San Jose, to the hills on the far side. Congressional
district 36, located in Kern and Kings Counties, is notable for its long,
thin arm which reaches through sparsely populated and unpopulated
stretches of San Luis Obispo and Santa Barbara counties to attach the
population around the campus of the University of California at Santa
Barbara. Congressional District 42, based in central San Diego County
and including parts of the City of San Diego, runs in an irregular pattern
north to pick up part of the community of Newport Beach in Orange County,
80 miles away. Congressional District 43, a district based in Riverside
and Imperial Counties, unnecessarily includes citizens from distant
coastal areas near the City of San Diego, and part of the City itself.
Finally, Congressional Districts 28 and 37 in Los Angeles both include
grotesque appendages and meandering lines which cannot have resulted
from any acceptable rationale.
"The changes which SB 195 made in the 1971 AB 16 plan failed to
improve a single one of these deficiencies. Indeed, changes to the 17th,
28th, and 37th districts make them even less compact and more absurd than
they were in the 1972 versions.
"In the Assembly Plan, Assembly District 2 runs a long corridor up
the California coast, passing up nearer population along the way.
Assembly District 29 extends all the way from the community of Taft in
Kern County to the City of San Jose in Santa Clara County, truly a
remarkable feat of cartography. Assembly District 23 runs from the San
Luis Obispo-Kern County line to the western San Bernardino County
communities of Upland and Ontario. Assembly District 69, which has
probably elicited more adverse public comment than any other district,
runs in narrow, irregular corridors along the borders of Orange and Los
Angeles Counties. San Diego County Assembly districts 76, 78, 79, and 80
wander through the county in jigsaw fashion, dividing the urban areas of
the county in an irrational manner which is bound to confuse the electorate.
"I cannot in good conscience conclude that these districts are fair
in any way to the citizens placed at their extreme ends, for such
configurations of districts as found in these plans are a mockery of good
government and cannot fail to impair the responsiveness and effectiveness
of representation accorded to the citizens of the state.
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#349
"UNNECESSARY DIVISION OF CITIES, COUNTIES AND COMMUNITIES OF INTEREST
"My comments in my veto message of AB 12, 1971 Extraordinary
Session, apply with at least equal vigor to these plans also: as in
that plan, another major flaw in these plans 'is the blatant failure to
pay due respect to the needs and interests of the different communities
and the political divisions in the state. The districts provided for
cut across county and city lines, fragment other established political
divisions of the state, and violate the identity of innumerable
communities. Again, the sole purpose seems to have been to achieve
partisan gains.
"Numerous examples of divisions of local political subdivisions
could be cited. Congressional District 17 divides almost every city it
touches (revisions in this district since the AB 16 plan of 1972 have
resulted in the division of yet another city). Congressional Districts
23 and 34 wind tortuously through Los Angeles and Orange Counties,
crossing city boundaries with utter abandon and creating districts
composed of widely separated fragments of cities and communities of
interest. Congressional District 38 substantially divides 6 of the 7
largest cities within its borders including Riverside, San Bernardino,
and Pomona.
"Assembly District 9 reaches into the central parts of Sacramento,
Stockton and even the tiny community of Woodland. Assembly District 27
runs a long and narrow appendage in grotesque fashion down El Camino
Real, dividing the cities of Burlingame, San Mateo, Belmont, San Carlos
and Redwood City. Assembly districts in the eastern part of Los Angeles
County seemingly pay no attention at all to community lines as they
wander in random fashion throughout this area. Assembly District 69, of
course, notorious for its absurd, contorted corridors, is also notable
for its division of virtually every community it touches, since few
incorporated communities are small enough to fit within such narrow
confines.
"Again, I cannot say in good conscience that these plans pay due
regard for the value of preserving our communities intact within the
representative structure or provide the citizens within these communities
and immediately surrounding areas with the fair and equitable
representation to which they are entitled. Accordingly, I cannot sign
the bill and it is returned herewith."
#####
-5-
Gray
OFFICE OF GOVERNOR RC ALD REAGAN
RELEASE:
mmediate
Sacramento, Californi 95814
Ed Gray, Press Secretary
916-445-4571
6-27-73
#350
Governor Ronald Reagan today announced the appointment of
Robert J. De Monte as director of the Office of Planning and Research
effective July 1, 1973.
De Monte, 30, is presently director of the Department of Housing
and Community Development, and is a former chief deputy director of the
Department of General Services.
In his new position, he will supervise the staffs of the Office
of Planning and Research, and also of the Council on Intergovernmental
Relations and the Office of Intergovernmental Management. This
reorganization results from changes in the 1973-74 budget.
His new office provides planning assistance and liaison with local
government, and serves as the planning and research staff to the
governor's cabinet.
He succeeds John Tooker who has been appointed legislative
assistant to the governor.
De Monte, a Republican, is a 1964 graduate of California State
College at Hayward with a B.S. Degree in accounting. He has also done
graduate work in business administration at Golden State College in
San Francisco.
A native of Oakland, De Monte and his wife have one child. They
make their home at 2607 Morley Way in Sacramento. He will receive an
annual salary of $27,800.
######
Walthall
OFFICE OF GOVERNOR R
ALD REAGAN
RELEASE
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-27-73
#351
Governor Ronald Reagan today announced the appointment of
Mrs. Marvin (Phyllis R.) Smith, Jr., of Encino as a member of the
California Hospital Commission.
Mrs. Smith fills the vacancy created by the resignation of
Allen J. Manzano of Sacramento.
A Republican, Mrs. Smith is a graduate of the University of
California at Los Angeles and has done graduate work in education at
the University of Southern California.
She is a member of the board of directors of the Valley
Presbyterian Hospital, Los Angeles Council of National Voluntary Health
Agencies and the Welfare Planning Council of the San Fernando Valley.
Mrs. Smith is also a member of the California State Health Planning
Council.
Hospital Commission members receive $100 a day and their necessary
expenses when the Commission meets on official business.
######
Walthall
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californi
95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#352
Governor Ronald Reagan today announced the following bills have been
signed:
AB 244-MacDonald Eliminates a duplicate Education Code provision
Chapter 116
relating to classified school employees.
AB 670-Lancaster
Requires the undersheriff, rather than the assistant
Chapter 117
sheriff, to assume the duties of sheriff when the
office of sheriff is vacant. The bill requires the
assistant sheriff to assume the duties of sheriff when
both the offices of sheriff and undersheriff are vacant.
SB 52 -Gregorie
Provides that proficiency standards established by the
Chapter 111
Department of Education for school districts to measure
eligibility of individuals for exemption from compulsory
continuation education may be declared operative by the
department prior to the current statutory date of
September 1, 1975.
SB 376 - Biddle
Authorizes the Beaumont Irrigation District to change
Chapter 113
its name to the Beaumont Water District.
SB 507 - Way
Permits bonding requirements for county agricultural
Chapter 112
commissioners, county librarians, and county road
commissioners to be satisfied by a master bond covering
more than one county officer, employee, or agent.
SB 778 - Collier
Transfers duties relating to the state accounting
Chapter 114
systems from the Department of General Services to
the Department of Finance.
SB 906 - Coombs
Amends the Contractors License Law by granting exemp-
Chapter 115
tions from registration as home improvement salesmen to
(a) sales persons whose sales are all made pursuant to
prior negotiations between the parties at a business
establishment at a fixed location where goods or
services are offered or exhibited for sale and (b)
sales persons whose sales are all made pursuant to
negotiations between the parties initiated by the
prospective buyer at or to such a business establishment
#####
Walthall
OFFICE OF GOVERNOR
I
IALD REAGAN
RELEASE
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#353
Governor Ronald Reagan today announced the appointment of Robert
M. Takasugi of Montebello as judge of the Municipal Court of the East
Los Angeles Judicial District.
Takasugi, a 43-year-old Democrat, will succeed Judge Myer B. Marion
of Montebello on his retirement July 10.
The senior partner in a Los Angeles law firm, Takasugi has been in
general practice since 1960.
He is a 1953 graduate of the University of California at Los Angeles
and earned his law degree in 1959 at the University of Southern
California.
A member of various law associations, Takasugi is a member of the
Japanese-American Citizens' League, Bella Vista Optimist Club of
Montebello, Selective Service Appeals Board, Board of Governors of the
East Los Angeles State Service Center, and a member of the Advisory
Council to the Los Angeles County district attorney. He is also a
hearing examiner for the Los Angeles City Police Commission.
Takasugi and his wife Dorothy are the parents of two minor children.
He will receive an annual salary of $33,481.
#####
Walthall
OFFICE OF GOVERNOR I IALD REAGAN
RELEASE
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#354
Governor Ronald Reagan today announced the appointment of
Jerry W. Green, director of the state Department of Health Care
Services, as chairman of the California Health Care Commission.
Green, 39, fills the vacancy created by the resignation of
Dwight M. Geduldig, new director of the state Department of Human
Resources Development. Green succeeded Geduldig as director of Health
Care Services. He will serve as director until July 1, when Health
Care Services becomes part of the new Department of Health.
Green is 1959 graduate of Sacramento State University, and is a
former chief deputy director of Health Care Services and the state
Department of Public Health. He has also served as an auditor with the
Local Allocation Division in the Department of Finance.
Commission members receive their necessary travel expenses.
######
Appointee's address:
Jerry W. Green
981 Sand Bar Circle
Carmichael, California
Walthall
OFFICE OF GOVERNOR R ALD REAGAN
RELEASE:
1
mediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#355
Governor Ronald Reagan today announced the appointment of Paul
F. Lawrence, deputy assistant commissioner of the Office of Regional
Office Coordination of the United States Office of Education as an
assistant to his education advisor, Dr. Alex C. Sherriffs.
Lawrence, 61, will serve on loan from the U. S. Office of
Education.
A resident of Sacramento, he will serve as liaison between the
education section of the overnor's office and the U. S. Department of
Health, Education and Welfare.
Lawrence is a 1935 graduate of Newark State Teachers College,
Newark, New Jersey, with a B.S. Degree in elementary education. He
earned his Masters (1946) and Doctorate (1947) degrees from Stanford
University.
He was teaching assistant in the Stanford University Department
of Education and is a former associate professor of education at Howard
University in Washington, D.C. In addition, he has been a visiting
professor of education at Virginia State College, Petersburg; Hampton
Institute, Hampton, Virginia; and, West Virginia State College at
Institute, West Virginia. He joined federal service in 1955.
Lawrence and his wife Vivian have two adult children.
######
Walthall
OFFICE OF GOVERNOR
NALD REAGAN
RELEASE
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#356
Governor Ronald Reagan today announced the reappointments of
Sonora businessmen Baci Frecceri and Walter C. Sundborg to the 29th
District Agricultural Association Board of Directors. The association
operates the Mother Lode Fair,
Frecceri, 52, has served on the board since February 21, 1969.
He is a sales representative for the California State Automobile
Association.
Sundborg, 62, has served on the board since February 23, 1965.
He is associated with the Koalin Corporation in Sutter Creek.
Both men are Republicans. Board members serve four-year terms and
receive necessary expenses.
#####
Appointees' addresses:
Baci Frecceri
Walter C. Sundborg
Route 6, Box 886
Rt. 1, Box 1
Peaceful Valley
Shell Road
Sonora 95370
Sonora 95370
Garcia
OFFICE OF GOVERNOR :
JALD REAGAN
RELEASE Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#357
Governor Ronald Reagan today announced the appointment of
Henry H. Stone to replace John C. Weaver on the 40th District
Agricultural Association board of directors. Both men are from
Woodland. The association operates the Yolo County Fair.
Stone, a 42-year-old Republican, will fill the unexpired term of
Weaver, who resigned. The term expires January 15, 1975. Stone, a
former cattle rancher in San Joaquin County, is manager of the Woodland
Farm Credit Associations. He is married and is the father of three
children.
Board members receive necessary expenses.
#######
Appointee's address:
Henry H. Stone
804 Wendell Place
Woodland, California 95695
Garcia
OFFICE OF GOVERNOR NALD REAGAN RELEASE:
mediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#358
Governor Ronald Reagan today announced the appointment of Mrs.
Kenneth C. (Ruth M.) Smith, of South Lake Tahoe, to the Lahonten
Regional Water Quality Control Board. She replaces Laurel W. Ames,
also of South Lake Tahoe, who resigned. The term expires on September
18, 1974.
Mrs. Smith, a Republican, is married to Dr. Kenneth C. Smith,
who is Mayor of South Lake Tahoe. She is a native Californian and
attended the University of California, Berkeley, for three years. She
is the mother of four children.
Board members receive necessary expenses.
#####
Mrs. Ruth M. Smith
743 Lakeview Avenue
Post Office Box 3075
South Lake Tahoe, California 95705
Garci,
OFFICE OF GOVERNOR
JALD REAGAN
RELEAS
Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#359
Governor Ronald Reagan today issued the following statement:
"For several months the legislature has had before it a proposal
for the return to the people of the one-time surplus that has accumulated
over the last two fiscal years. For several months the majority
leadership has been sitting on this matter with no attempt to reconcile
differing viewpoints.
"During these several months and in these past several days, I have
asked that they at least settle the matter of delaying the scheduled
sales tax increase until January 1. Now, only hours away from that
increase going into effect and obviously taking advantage of the lack
of any more time, they want to attach to the delay in the increase
matters which have no urgency time-wise and which should have been
debated in the normal legislative process during these past months.
It is a kind of irresponsible fun and games we have become used to at
this season of the year---it is not a proper exercise of the legislative
process.
"The sales tax will be increased day after tomorrow unless the
legislature acts before then. No one can be hurt and the people can
only be helped by delaying the increase six months until January 1.
All the other matters now being attached as a price for this deferral
can be discussed and negotiated in the months to come. There is no
time urgency to plans for returning the balance of the surplus to the
people.'
######
Gray
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-29-73
#360
Governor Ronald Reagan today accused Assembly Speaker Bob Moretti
of singlehandedly sabotaging and killing legislation to delay a
scheduled one-cent increase in the sales tax / and return up to 35 per-
cent of this year's state income tax to the people.
Moretti's decision to deny both houses of the legislature an
opportunity to vote on the governor's generous sales tax delay and
income tax rebate proposal left the conference committee on which
Moretti serves one vote short of the four votes required.
The Assembly Speaker's decision was made in the face of assurances
from three of the four members of the conference committee that they
would place the plan before the legislature tonight.
The governor's proposal would have provided persons with an
adjusted gross income of $15,000 or less a 35 percent income tax rebate
on this year's state income tax.
Persons with an adjusted gross income of between $15,000 and
$20,000 would have had a 30 percent income tax rebate; those with an
income of $20 to $25 thousand would receive a 25 percent income tax
rebate; and higher income earners--those with an annual adjusted gross
income of $25,000 or more-would have received a 20 percent rebate on
their 1973 state income tax. This would have been in addition to the
six month, deferral of the one-cent sales tax increase scheduled to go
into effect Saturday night at midnight.
As a result of the Assembly Speaker's decision, the governor said
he had no choice but to veto a phoney bill offered by Senator Walter
Stiern which did not represent any compromise at all.
The governor said:
"Speaker Moretti's refusal to give the legislature even an oppor-
tunity to vote on the compromise measure I have proposed shows very
clearly that he has severely misused his power as Assembly Speaker
again.
"His action indicates his utter contempt for not only the
legislative process but for the people of California themselves who,
because of his duplicity and tardiness in the entire matter of returning
the surplus, will be faced with a sales tax increase of one cent on
Sunday.
-1-
#360
"He has attempted to avoid any blame for this by proposing a
thoroughly phoney so-called compromise which he knew could not become
law. He has known for months that I simply could not sign the kind
of legislation he proposed.
"The real reason he decided not to let the legislature vote on
our proposal is because he does not want to return the state's current
one-time surplus to the people at all, even though it is an overcharge
and should be returned.
"But despite his refusal to do this, I intend to continue to
propose ways to give back the surplus to all of the people.
"If, on November 6, the voters pass our initiative to reduce
taxes, including a 20 percent rebate of this year's income tax and a
7½ percent ongoing income tax cut starting next year, I will continue
to propose additional measures to return the remainder of the surplus
to the taxpayers.
"Finally, I want to put every Californian on notice that on Sunday
when the state's sales tax goes up one cent on the dollar, they should
remember that it was one man, Assemblyman Bob Moretti, who made that
increase necessary. I have personally tried every means at my disposal
as governor to keep that from happening in the spirit of compromise
over these last six months. Yet, at the very last moment, Mr. Moretti
has seen fit to dash all our hopes for a reasonable agreement.
"The sales tax increase now rests squarely and solely on Assembly
Speaker Bob Moretti's shoulders," the governor said.
# # #
-2-
Gray
OFFICE OF GOVERNOR F ALD REAGAN
RELEASE:
ediate
Sacramento, California 95814
Ed Gray, Press Secretary
916-445-4571
6-30-73
#361
Governor Ronald Reagan today announced that the following bills
have been signed:
AB 346 - Mobley
Exempts nectarines shipped out of state for processing
Chapter 127
from the packing and marking requirements of the Food
and Agricultural Code otherwise required for nectarines
shipped as fresh fruit. The fruit shipped under this
exemption must meet the basic quality requirements
established for nectarines and may only be shipped
under a permit issued by the county agricultural
commissioners. The bill also authorizes establishment
of a charge to cover the cost of issuing the permit.
AB 423 - Bagley
Provides that the provisions transferring boards
Chapter 122
relating to the healing arts from the Department of
Consumer Affairs to the Department of Health, operative
July 1, 1973, shall not become operative until July 1,
1977.
AB 432 - Seeley
Extends from January 1, to June 30, 1973, the date by
Chapter 123
which documents relating to certain boundary changes
in a school district must be filed with government
agencies for assessment and tax purposes during the
1973-74 fiscal year.
AB 893 -MacDonald Provides for a maximum authorized property tax rate in
Chapter 128
zone 1 of the Ventura County Flood Control District of
38 cents per $100 of assessed valuation until July 1,
1975, at whi time such maximum rate reverts to 20 cents
AB 897 - Arnett
Updates existing laws to provide for a general
Chapter 124
validation of apportionments that had become final
under the State Building Aid Law prior to January 1,
1974.
AB 2533 - Briggs
Increases, for the purpose of specified policies of
Chapter 125
group life insurance, the age limit for covered
dependent children from 20 years through 22 years of
age in certain circumstances.
SB 180 - Marler
Includes within the definition of "common trade or
Chapter 118
business," for purposes of group workmen's compensation
insurance policies, specified operations in logging,
sawmills, and related wood products operations and
manufacturing operations.
SB 316 - Song
Allows proceedings to incorporate an area to be started
Chapter 119
by a petition of 25 percent of the registered voters
of such area rather than by landowners only.
SB 451 -Gregorio
Specifies that, notwithstanding any other provisions of
Chapter 126
law, cities in San Mateo County incorporated after
April 1, 1971, but before May 31, 1971, shall not be
subject to specified planning provisions until June 30,
1974.
SB 594 Marler
Extends the date for adoption of the conservation ele-
Chapter 120
ment and the open space element of city and county
general plans from June 30, 1973, to December 31, 1973.
It also requires that zoning be consistent with the
general plans by January 1, 1974. It would provide
further that beginning on January 1, 1974, no mandatory
element of a general plan may be amended more than three
times per year, that hearings on zoning changes to
bring the zoning into conformity with changes in general
plans could not be held within two weeks of the change
in the general plan, and that a zoning ordinance must
be amended within a reasonable time after it becomes
inconsistent with a general plan by reason of a change
in the general plan.
SB 1351-Lagomarsino Continues the existence of the Commission for
Chapter 121
Economic Development until January 1, 1976.
######
Walthall
OFFICE OF GOVERNOR RO LD REAGAN
RELEASE: Ir ediate
Sacramento, Californi
95814
Ed Gray, Press Secretary 95814
916-445-4571
6-30-73
#362
The following items have been blue-pencilled by Governor Reagan:
Item 17
For support of Supreme Court of California, Courts of Appeal,
Judicial Council of California and Commission on Judicial
Qualifisations. I reduce this item from $11,033,249 to
$10,627,872.
I am approving this item as originally submitted as well as
$504,666 of the $910,043 added by the Legislature. The
balance of $405,377 is disapproved pending a report by a
special task force which I am appointing to study the appellate
court workload.
Item 47
For support of contribution to counties for providing legal
assistance to indigents. I reduce this item from $2,428,955
to $775,000.
I am eliminating the augmentation provided by the legislature
in view of the enactment of Chapter 1406/72 which provides
that the state shall reimburse local governments for added
costs resulting from state mandated new programs or increases
in the level of existing programs. This new law will greatly
assist local governments as will federal revenue sharing.
Accordingly, the budget level of support which has been the
appropriated level for many years is considered to be adequate.
Item 57
For support of Board of Equalization. I reduce this item from
$28,486,525 to $28,376,621 by reducing paragraph (a) Personal
Services from $30,753,156 to $30,653,243 and paragraph (b)
Operating Expenses and Equipment from $7,138,607 to $7,128,616.
I am eliminating from this item $109,904 which was added to
increase the board's intercounty equalization program. There
remains in this item sufficient funds for the Board to meet
its responsibilities in this area.
Item 60
For support of Secretary of State. I reduce this item from
$2,635,784 to $2,526,817 by reducing paragraph (a) Personal
Services from $1,707,115 to $1,609,610 and paragraph (b)
Operating Expenses and Equipment from $650,767 to $639,305.
I am reducing this item to a level of expenditure that provides
for an augmentation of 9.4 positions to the Secretary of State's
original budget in the Corporate Filing and Uniform Commercial
Code Divisions. Coupled with the 5 proposed new positions in
the original budget, this represents a 21 percent increase in
the staff of these two divisions. This amount will enable the
department to meet its responsibilities.
Item 70
For support of Public Utilities Commission. I reduce this
item from $7,652,847 to $7,622,847 by reducing paragraph (b)
Operating Expenses and Equipment from $2,466,908 to $2,436,908.
I am eliminating the funds added for Consulting Services for
BART.
The commission has assured me that the budget contains
sufficient funds to provide an adequate review of BART safety
operations without augmentation.
Item 86
For support of Augmentation for Salary Increase---Increase in
Statutory Salaries. I reduce this item from $92,121,000 to
$92,083,000 by reducing the proposed salary increase specified
therein for state officers whose salaries are specified by
statute and whose compensation is paid from the General Fund,
from 15.9 percent to 12.5 percent.
The increase of 15.9 percent was originally suggested to the legislature
by the administration to keep the two-year increase in statutory salaries
level with increases granted the vast majority of state employees. The
administration later revised its request to 12.5 percent, approximately
the average level of increases for state employees for the coming year.
The request to reduce the salary increase for statutory officers was re-
ceived by the legislature too late to act upon and I am accordingly re-
ducing this item to 12.5 percent which I consider to be adequate.
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#362
Item 87
For support of Augmentations for Salary Increase---Increase
in Statutory Salaries. I reduce this item from $58,575,000
to $58,564,000 by reducing the proposed salary increase
specified therein for state officers whose salaries are
specified by statute and whose compensation is paid from
special funds, from 15.9 percent to 12.5 percent.
The increase of 15.9 percent was originally suggested to the
legislature by the administration to keep the two-year increas
in statutory salaries level with increases granted the vast
majority of state employees. The administration later revised
its request to 12.5 percent, approximately the average level
of increases for state employees for the coming year. The
request to reduce the salary increase for statutory officers
was received by the legislature too late to act upon and I
am accordingly reducing this item to 12.5 percent which I
consider to be adequate.
Item 88
For support of Augmentations for Salary Increase---Increase
in Statutory Salaries. I reduce this item from $32,844,000
to $32,831,000 by reducing the proposed salary increase
specified therein for state officers whose salaries are
specified by statute and whose compensation is paid from non-
governmental cost funds, from 15.9 percent to 12.5 percent.
The increase of 15.9 percent was originally suggested to the
legislature by the administration to keep the two-year increas
in statutory salaries level with increases granted the vast
majority of state employees. The administration later revised
its request to 12.5 percent, approximately the average level
of increases for state employees for the coming year. The
request to reduce the salary increase for statutory officers
was received by the legislature too late to act upon and I
am accordingly reducing this item to 12.5 percent which I
consider to be adequate.
Item 92
For Claim of the Secretary of the State Board of Control.
I reduce this item from $133,388 to $123,388.
The claim of Computer Mailing, Inc. and Tsuruda and Reed in
the amount of $10,000 is currently before the courts and I
do not believe it advisable to include the claim in the Budget
Act at this time.
Item 118.1 For support of Department of Consumer Affairs, Division of
Consumer Services. I eliminate this item.
I am eliminating this General Fund support item because the
Division of Consumer Services serves the Special Fund
constituent boards, bureaus and commissions of the Department
and should be supported by special fund assessments rather
than the General Fund.
Item 122
For support of Bureau of Automotive Repair, Department of
Consumer Affairs. I reduce this item from $2,634,502 to
$2,424,139 by reducing paragraph (a) Personal Services from
$1,182,765 to $972,402.
I am reducing this item to the level originally submitted
since there are sufficient funds budgeted to handle the
projected workload and meet the important program needs of
the Bureau.
Item 154.1 For support of the Uninsured Employers Fund. I eliminate
this item.
I am eliminating this augmentation from the General Fund for
transfer to the Uninsured Employers Fund. Legislation which
set up the latter fund was signed with the anticipation that
the Uninsured Employers Fund would be self-supporting. It
was never expected to be a burden on the General Fund and I
am asking the department to seek legislation which will make
possible the original concept of a wholly self-supporting
activity.
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#362
Item 194 For support of Tahoe Regional Planning Agency. I reduce this
item from $100,000 to $50,000.
I am reducing this item to the amount proposed in the budget I
submitted in January which I believe will be adequate for the
state to meet its own commitment to supplement the support of
the planning agency.
Item 195.5 For support of the California Coastal Zone Conservation
Commission and Regional Coastal Zone Conservation Commission.
I eliminate this item.
I am eliminating this item because I believe the continuing
appropriation made from the Bagley Conservation Fund by
Proposition 20 is sufficient to meet the needs of the Commis-
sion during the 1973-74 fiscal year. It will be appropriate
to review the total operational program of the Commission at
the time the 1974 budget is reviewed.
Item 197
For support of the Environmental Protection Program, Resources
Agency and Business and Transportation Agency. I reduce this
item from $2,092,820 to $1,712,820.
I am eliminating the $30,000 for the Joice Island walkway,
$250,000 for Conservation Education, and $100,000 for a study
of kelp as unnecessary augmentations of programs that already
are adequately provided for in the budget. With respect to the
proposed $250,000 augmentation for Conservation Education, I
believe it is premature, since the administrators of the
Program and the Department of Education are now negotiating
toward a coordinated funding of conservation education efforts
by the Department and the Program. I expect to propose such
coordinated funding on behalf of the Program in my budget
message next year.
Item 197.8 To Department of Education for School District Environmental
Land Acquisition. I eliminate this item.
I have eliminated this item because there already are sufficient
funds for this purpose in Item 197 of this Budget Act.
Item 214
For support of State Lands Division, State Lands Commission,
Department of Conservation. I reduce this item from $2,468,177
to $2,374,600 by reducing paragraph (a) Personal Services from
$2,964,753 to $2,874,970 and paragraph (b) Operating Expenses
and Equipment from $650,852 to $647,058.
I am reducing this item because most of the inventory of state
lands which this amount provides for is being accomplished
without the need for an augmentation, and funds for the re-
maining work should be available in the budget of the state
department which will receive the services. I am, however,
still allowing a total augmentation of $517,000 to the original
budget I submitted.
Item 215
For support of Department of Fish and Game. I reduce this
item from $22,188,029 to $21,514,121 by reducing paragraph
(a) Personal Services from $14,845,307 to $14,486,624 and
paragraph (b) Operating Expenses and Equipment from $8,034,162
to $7,923,062, paragraph (d) Minor capital outlay from $372,600
to $307,600, paragraph (e) Pittman-Robertson program from
$2,711,200 to $2,643,100, paragraph (f) Dingell-Johnson program
from $916,500 to $909,500, paragraph (h) Anadromous Fish Act
program from $697,300 to $456,600 and paragraph (m) Federal
reimbursements from $3,311,675 to $3,135,000.
I am reducing this item because there are insufficient funds in
the Fish and Game Preservation Fund to fully finance the
department's approved programs together with these additions.
We requested the legislature to make this reduction on March
1, 1973, a request which was not acted upon. I am now reducing
the item to maintain the financial integrity of the fund.
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Item 227
For support of Department of Parks and Recreation. I reduce
this item from $24,520,537 to $24,470,537 by reducing
paragraph (b) Operating Expenses and Equipment from $8,420,205
to $8,370,205.
I am eliminating the funds provided to employ an outside
consultant for an independent review of acquisition practices.
These practices already are well defined and have been subject
to review to such an extent that any further expenditure of
funds for such a purpose would be nonproductive.
Item 227.2 For support of Department of Parks and Recreation for
feasibility study of a park site at Baldwin Hills Dam. I
eliminate this item.
I am eliminating this item because additional staff resources
have been provided to adequately meet the needs of the
department. The additonal staff will enable the department
to develop the necessary feasibility studies.
Item 237.5 For support of Child Development Programs and Child Care
Services, Office of Educational Liaison, Health and Welfare
Agency. I eliminate this item.
The federal funds available and allocated for child development
programs and child care services are sufficient to allow for
planned expansion of these programs.
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#362
Item 243
I eliminate the subschedule set forth under Schedule (a).
The subschedule infringes upon my constitutional and statu-
tory authority to organize, reorganize, classify and arrange
the functions of officers and employees of a state agency
under Section 3 of Article III and Section 6 of Article V
of the State Constitution and Section 11152 of the Govern-
ment Code; as such, the subschedule constitutes a subject
of legislation outside the scope of the Budget Act.
In addition, the subschedule infringes upon my constitutional
authority to eliminate or reduce specific budget items,
impairs the state's ability to utilize available federal
funds, would severely limit current programs and would make
compliance with federal law impossible.
For these and other reasons, I eliminate the subschedule as
invalid language and surplusage.
Item 251
For support of Board of Medical Examiners. I reduce this
item from $2,246,190 to $2,096,190.
I am reducing this item for Mexican medical student scholar-
ships by $150,000. Because Mexican student enrollment is
not as great as was previously expected, the legislature's
budget augmentation will not be needed.
Item 262.2 For support of Department of Health - Citizens' Advisory
Council. I eliminate this item.
The Citizens' Advisory Council provides advice and assist-
ance to the Director of Health. The Department of Health
can provide staff as needed to support the work of the
council. Therefore I am eliminating the item.
Item 264
For transfer of the Health Care Deposit Fund to provide for
Medical Assistance Program expenditure. I reduce this item
from $621,728,766 to $603,184,575.
I have reduced the funds for caseload expenditures by
$18,544,191 in accordance with the revised estimates of
the Department of Health, as reported to the legislature in
May of this year.
Item 270.5 For support of Human Resources Development, Migrant Day
Care. I eliminate this item.
The federal funds already available and allocated for Migrant
Day Care programs are sufficient to allow for the continua-
tion of this service and there is no need for any additional
General Fund monies. Therefore, I am eliminating the item.
Item 277
For support of Department of Social Welfare - Unmet Shelter
Needs. I reduce this item from $1,500,000 to $750,000.
I have reduced this item by $750,000 because the pending
implementation of federal legislation (EN 1) makes this
expenditure unnecessary. The remaining $750,000 will
adequately fund the program until it is taken over by the
federal government on January 1, 1974.
Item 278
For support of Department of Social Welfare - Homemakers'
Services. I reduce this item from $16,863,125 to $13,868,200.
I have reduced the funds for caseload expenditures by
$2,994,925 in accordance with the revised estimates of the
Department of Social Welfare as reported to the legislature
in May of this year.
Item 281
For support of Department of Corrections. I reduce this
item from $135,699,642 to $134,721,317.
I am eliminating a $250,000 augmentation for the Inmate Wel-
fare Fund because the current method of providing recrea-
tional equipment and supplies is both adequate and satisfactory.
In addition, I am reducing the item by another $728,325 for inmate
release funds because an increase in the minimum release funds, from
$68 to $200, will still be permitted for each inmate who leaves prison.
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Item 281.1 For support of Department of Corrections. I reduce this
item from $500,000 to $100,000.
I am reducing the augmentation for contracting with private
agencies to provide correctional services to inmates by
$400,000 until present programs may be identified and
evaluated for their effectiveness. The amount of $100,000
is adequate to seek and evaluate new programs to assist
inmates.
Item 281.2 For support of Department of Corrections. I eliminate this
item.
The Department of Corrections currently operates four com-
munity correctional centers which are supported by state
funds. A fifth center was recently opened under a federal
grant for research and evaluation. Additional centers
should not be established until results of the federal study
are known. Therefore, I am eliminating this augmentation
of $600,000.
Item 281.3 For support of Department of Corrections. I eliminate this
item.
I am eliminating the augmentation of $300,000 for employment
of additional correctional counselors pending evaluation of
the usage of correctional program supervisors recently
introduced to institutions.
Item 285.1 For support of Department of the Youth Authority. I reduce
this item from $300,000 to $100,000.
I am reducing the augmentation for contracting with private
agencies for correctional services to wards and parolees
by $200,000 until programs may be identified and evaluated
for effectiveness. This remaining $100,000 augmentation,
plus currently available funds, is adequate to seek and
evaluate new programs to assist wards and parolees.
Item 285.2 For support of Department of the Youth Authority. I elimin-
ate this item.
The Department is presently operating several structured
residential programs. There is no clearly demonstrated
need for additional funds. Therefore, I am eliminating
this $400,000 item.
Item 285.3 For support of Department of the Youth Authority. I elimin-
ate this item.
I am eliminating this augmentation of $500,000 because there
is insufficient data available to support the contention that
reduced caseloads for parole officers contribute signifi-
cantly to public safety. Until such research has been
completed, existing parole agent caseloads should be
maintained.
Item 297
For support of Department of Education. I reduce this item
from $7,682,263 to $7,655,263 by reducing paragraph (a)
Personal Services from $18,164,124 to $18,146,124 and para-
graph (b) Operating Expenses and Equipment from $11,172,181
to $11,163,181.
I have eliminated the school nurse consultant and related
expenses. There is no evidence that increased consultation
or technical assistance from the state is needed.
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Item 297.1 For augmention of Department of Education, Superintendent
of Public Instruction and State Board of Education. I re-
duce this item from $2,101,559 to $1,500,000 by reducing
paragraph (a) Personal Services from $1,398,450 to $1,000,000,
and paragraph (b) Operating Expenses and Equipment from
$700,792 to $497,683.
The intention of this augmentation was to replace federal
funding under ESEA Title V. There are many worthwhile
programs, such as evaluation of year-round schools, state-
wide testing and Mexican-American liaison funded through
this money, and I am approving sufficient funds to be sure
that all the highest priority services will not be discon-
tinued if federal funds are withdrawn. However, I have
reduced the total by $601,559 because I do not believe the
state can assume every program which will no longer be
federally funded. I believe the department must eliminate
programs of lowest priority and strive for greater economy.
Item 302
For support of Division of Libraries, Department of Education
and Board of Library Examiners. I reduce this item from
$2,294,760 to $2,097,198 by reducing paragraph (a) Personal
Services from $2,240,073 to $2,127,091 and paragraph (b)
Operating Expenses and Equipment from $6,869,657 to
$6,785,077.
The workload of the interlibrary loan, handicapped unit,
does not justify the augmented amount in this item. However,
four additional positions are needed to perform necessary
services. Therefore, I am reducing this item only by the
amount of the excess augmentation.
Item 307
Compensatory education, special teacher employment programs,
demonstration programs in reading and mathematics and pro-
fessional development and program improvement, Department of
Education. I reduce this item from $11,138,000 to
$10,818,000.
I have eliminated funding for the Research and Teacher
Education Projects at the University of California, Los
Angeles. My agreement to continue funding of this project
in 1972-73 did not anticipate that the project would be
continued in 1973-74.
I also have eliminated the $220,000 augmentation for an
Urban-Bilingual Professional Development Center project.
Sufficient funding and flexibility were included in the
Department's support budget submitted to the legislature in
January to allow the department to fund this project on a
priority basis.
Item 308.1 For the support of Chapter 638, Statutes of 1972, Depart-
ment of Education. I reduce this item from $515,000 to
$355,000.
I have included sufficient funding in this item for the
continuation of this project through 1973-74, at which time
a final evaluation will be completed and the project will
be discontinued as a state-funded program.
Funds remaining in the item provide for:
a. Continuation of the 50 classes which are now being
evaluated.
b. Evaluation, including a formal interim report in January
1974 and a final report in June 1974.
C. Continuation of 20 classes which are not now being
evaluated.
Item 308.2 For pilot cooperative improvement and dropout prevention
programs. I eliminate this item.
This appears to be a program more properly funded in the
Department of Youth Authority. I therefore have asked the
Department to begin negotiations for the pilot project from
their support budget.
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Item 309.5 For Chilaren's Centers Programs, Department of Education.
I reduce this item from $23,113,233 to $5,828,550 by elimin-
ating paragraph (a) Children's Centers ($6,750,000) and
paragraph (c) campus children's centers ($2,025,000), and
reducing paragraph (b) Preschool education from $14,338,233
to $5,828,550.
The federal funds available and allocated for child develop-
ment programs are sufficient to allow for the planned expan-
sion in the children's center programs and there is no need
for General Fund contingency funding.
New federal regulations are likely to cause large funding
reductions in the Preschool Education Program. It is not
my intention for the state to automatically assume financial
responsibility for previously federally funded programs
without a thorough review.
Funds which remain in this item, together with state funds
in Item 309 (c), will allow the Preschool Education Program
to continue for six months while this administration studies
the program and develops stronger regulations through the
legislative process.
Item 310
For assistance to public libraries, Division of Libraries,
Department of Education. I reduce this item from $1,355,000
to $1,000,000.
I cannot support the full augmentation suggested by the
legislature, but I am leaving $200,000 in this item over
and above the amount originally proposed in my budget sub-
mitted in January. As proposed by the Legislative Analyst,
I believe that a revised allocation system could provide
for more effective use of the taxpayers' money.
Item 316
For support of University of California. I reduce this item
from $399,365,749 to $397,890,749.
I reduce this item for the following reasons:
Price Increase
-$350,000
I am approving an augmentation of $1,650,000 for this
purpose.
Extended Opportunity Program
-$1,000,000
The University has a successful Educational Opportunity
Program. Existing resources are sufficient to finance
over eight percent of its undergraduate enrollment in the
program which, I believe, is sufficient.
Residencies for Primary Care
-$125,000
The University originally intended to admit 104 additional
residencies for the 1973-74 year. However, they have cur-
rently enrolled 78 and it does not appear that this number
will substantially increase by September. I am therefore
proportionately reducing this item.
Item 316.4 For support of University of California instructional pro-
grams in health sciences affected by Federal budget
reductions. I reduce this item from $1,834,000 to
$1,031,000.
I have accepted that part of the augmentation suggested by
the legislature which would fund the two highest priorities
in this item, $820,000 for programs in the field of public
health and $211,000 for the program in family practice
medicine at Sonoma and the special program to train nurse
practitioners at UCLA. In addition, the University has
over $470,000 in carryover funds from the current year
available for funding of these items. The remaining lower
priority items which I have deleted may be funded from the
University's support budget if they are deemed of higher
priority than other currently supported activities.
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Item 316.5 For replacement of Federal Fund Reductions, University of
California. I reduce this item from $1,098,000 to $600,000
by reducing paragraph (a) Bankhead-Jones Funds from
$166,000 to $91,000, paragraph (b) Hatch Act and McIntire-
Stennis Act Funds from $404,000 to $228,000, paragraph (c)
Smith-Lever Act Funds from $146,000 to $81,000 and paragraph
(d) Sea Grant College Program from $182,000 to $ 0.
I am reducing this item by $498,000 because I believe there
will be sufficient funds to maintain the 1972-73 University-
wide student-faculty ratio in those programs receiving fund-
ing from a through c above and to finance the operation of
the research ship. The administration is supporting
legislation, already introduced, which would provide sub-
stantial money for sea grants. If passed, a portion of this
money would be available to the University.
Item 316.12 For research in mosquito control, University of California.
I eliminate this item.
The budget as originally submitted contained $300,000 for
mosquito research. In addition I am approving another
$100,000 for this purpose in Item 316. I believe this will
provide ample funds for this purpose.
Item 323
For support of Trustees of the California State University
and Colleges and the California State University and
Colleges. I reduce this item from $407,156,252 to
$405,647,372 by reducing paragraph (a) Personal Services
from $402,254,625 to $402,206,052 and paragraph (b) Operat-
ing Expenses and Equipment from $89,842,549 to $88,382,242.
I am reducing this item for the following reasons:
Replacement Equipment
$1,000,000
Funds to accomplish replacement of equipment can
be made available by the trustees without approval
of the Department of Finance from excess salary
savings, as provided in Section 28.7 (a) of the
Budget Act.
Educational Opportunity Programs
428,880
Of the $1,408,880 legislative augmentation to the
program, I am approving $980,000 in the budget.
This will provide $580,000 in grants for 2,416
third and fourth-year students and $400,000 in
grants and related staffing needs to increase
the number of lower division students covered
to 4,220 (fulltime equivalent) students.
Planning Funds for Year-Round Operation
50,000
Substantial amounts have been spent in previous
years on planning for year-round operations at
California State University, San Francisco.
With the decline in the level of enrollment
growth in the California State University and
College System, these additional planning funds
are not needed.
San Diego Educational Television
30,000
Sufficient funds already are provided in the
budget to cover operations for instructional
programs on the campus. The funding for this
station will be reviewed thoroughly during
1973-74 with the goal of developing reasonable
funding formulas which can be put into use be-
ginning in 1974-75.
Item 327
For support of Board of Governors, California Community
Colleges. I reduce this item from $1,137,299 to $1,087,839
by reducing paragraph (a) Personal Services from $1,587,596
to $1,541,095 and paragraph (b) Operating Expenses and
Equipment from $543,570 to $540,611.
I am reducing this item which would have added an architect and a
specialist to the staff of the Chancellor's Office. Such capabilities
already exist in that organization and can be utilized to meet system-
wide facility planning objectives.
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Item 328
For Comm ity College extended oppor unity programs, Board
of Governors of the California Community Colleges. I re-
duce this item from $7,360,000 to $6,170,500.
The legislature's proposed funding for this program would
have increased community college EOP funds by more than
50 percent over the current year. At present, the community
colleges expend 52 percent of these funds for administration
and counseling. A large number of economically deprived
high school graduates--minority and other--have, despite
their handicaps, achieved at a normal or better than normal
level in their high schools. These students would need only
oridinary support services in the community colleges and
are too often overlooked when selecting for EOP grants.
Many of the economically disadvantaged are unable to con-
tinue their education. I am thinking of these students when
I accept $1,056,000 of the suggested augmentation. I want
to make the strongest plea that these dollars be used solely
for grants and for the achieving minority and poor students.
Item 331.1 For support of Department of General Services for working
drawings, state building, San Jose. I eliminate this item.
Information provided by the Department of General Services
indicates that a state-constructed building in San Jose
cannot be economically justified at this time.
Item 337
I delete from Item 337 the words "or less". Fire, safety,
and public health needs cannot be forecast to the exact
penny. A maximum limitation is acceptable; an identical
minimum is artificial and unworkable. The executive depart-
ment is best able to determine those minimum needs. I be-
lieve that any language which mandates such spending is
unreasonable and lacks constitutional authority.
Item 360
For capital outlay, University of California. I reduce this
item from $12,970,000 to $12,922,000 by eliminating paragraph
(30) Working drawings for College No. 8 Academic Unit,
Santa Cruz Campus ($48,000).
I am eliminating this item because the proper size of the
campus at the University of California, Santa Cruz, is still
under study. Until the future size of this campus and the
pattern of total enrollments in the universities is
clarified, I believe it is premature to commence an addi-
tional college on this campus.
Item 361
For capital outlay, Trustees of the California State
University and Colleges. I reduce this item from
$26,922,000 to $23,967,000 by eliminating paragraph (49)
State College, Bakersfield, Construct Science building II
($2,955,000).
I am eliminating this project because it is not of suffi-
ciently high priority in the building program as specified
by the Trustees of the California State University and
Colleges.
Section 32.5 For support of public assistance programs, Department of
Social Welfare. I reduce this section from $680,332,600
to $664,286,700.
I have reduced the estimates for caseload expenditures by
$16,045,900 in accordance with the revised estimates of
the Department of Social Welfare as reported to the
legislature in May of this year.
# # #
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Gray
OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-30-73
#363
on
Governor Ronald Reagan today issued the following statement:
signing
budget
"Well, here we are again, on the late, late show.
"I was hoping that, for once, I might be able to sign a budget
around the constitutional deadline -- which for the legislature was
June 15, but the legislature was late again.
"In reporting on the budget I am about to sign there has been a
great deal of comment about that being the biggest in the state's
history. Actually, only one-third of it is required to run state
government. The reaminder is what the state merely collects and turns
back to local government and the public schools.
"But the principal reason this budget is so large is because ap-
proximately $1 billion of it does not represent an increase in government
spending but a transfer of cost from local government to the state. This
billion dollars is being returned directly to the people in the form of
property tax relief - relief which millions of California homeowners
already are seeing reflected in their property tax bills. Only several
years ago, the cynics were saying such tax relief would never become a
reality.
"This budget reflects the greatest one-year increase in state
support for local schools ever achieved by any state in any year. The
critics also said that could never happen, but it has.
"In fact, nearly one-half of our general fund budget for the coming
year is devoted to the support of education in California.
"You'll be interested to know that state support for local schools
is up 31 percent over last year and has increased 50 percent over the
last three years.
"Under this budget, state funding for assistance to economically
disadvantaged students at the California State University and Colleges
will more than triple (254%) what it was only three years ago.
"The budget also sets aside more than $85 million to beef up our
growing state park system, an increasing source of pride to all Californ-
ians.
"Now, I know my mentioning these things must seem somewhat out of
character for me, but be assured -- I have not forgotten to bring my
big blue pencil and, let there be no mistake, I am going to use it in
vetoing some $80 million out of the budget.
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#363
"Nearly one-half of that is in welfare and Medi-Cal expenditures--
money which is not needed because of the vastly reduced welfare caseload
in California. In fact, because of this administration's successful
efforts to drastically overhaul and reform welfare, there are now 318,000
fewer persons drawing welfare in the state than when we began implementing
the reforms in March of 1971. Yet the truly needy on welfare are
receiving considerably higher grants to meet their needs than ever before.
"There are many other specific items in this budget which might
be mentioned but time does not permit.
"I would, however, like to put the budget in a broader and very
serious perspective. If you think $9.4 billion is large, I invite you to
look down the road just 15 years when the state's budget will be five
times this big. But even worse, the statewill have increased its tax
take from the average Californ ia wage earner's dollar by 40 percent.
"Our projections show that this will indeed happen unless something
is done soon to halt this trend.
"The people of California will have just such an opportunity this
November at the ballot box to assure that the trend toward bigger and
more expensive government is reversed and the tax burden they bear is
actually reduced, by order of the Supreme law of our state, the California
Constitution.
"No amount of realistic cut-squeeze-and-trim can do it. I know
because we've made that a hallmark of this administration. The
tremendous special interest pressures on the legislature to spend more
and more of the people's money have convinced me that even the most frugal
administration cannot halt the trend toward a heavier and higher tax
burden without the mandatory restraint of a tax limit.
"The size of this and future state budgets should put every citizen
on notice that unless they vote to limit and control government's
appetite for the people's earnings - by constitutional decree -- it
is only a matter of time before government will be taking most of their
wages in taxes, if our free economic system doesn't collapse first.
"These are sobering thoughts. But, they are surely true."
#####
Gray
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OFFICE OF GOVERNOR RONALD REAGAN
RELEASE: Immediate
Sacramento, Californ
95814
Ed Gray, Press Secretary
916-445-4571
6-30-73
#364
Stien
Governor Ronald Reagan today made the following statement per-
taining to the veto of SB 425:
"Last winter, when the dimensions of our tax surplus became
apparent, I proposed that we simply give the money back as nearly as
possible to those who paid it in. This could best be done by a
six-month delay of the scheduled sales tax increase, and a 20 percent
across-the-board income tax rebate. The remainder should be spent on
parks and beaches and to restore the Capitol building.'
"Although the democrat leaders said they did not favor returning
the surplus taxes to those who paid, Assemblyman Bagley introduced such
a bill in the Assembly, and Senator Lagomarsino introduced a similar
bill in the Senate.
"Stating to us that his pending plans would require that we keep
the excess income taxes and begin collecting an un-needed sales tax on
July 1, the Assembly Speaker killed the Bagley bill almost immediately.
It was then apparent that Senator Lagomarsino's bill to delay the sales
tax and return the excess income taxes would meet the same fate at
the hands of the Speaker.
"Therefore, we included the 20 percent rebate in our tax
initiative for next fall, and put the parks and Capitol money in the
upcoming 1973-74 budget. But there was nothing we could do about the
sales tax delay without a specific bill, which the Speaker had already
said he would not give us, and had confirmed this fact by killing the
Bagley bill. Still showing his constant opposition, he recently in
effect killed the Lagomarsino bill after it had passed the Senate by
having it amended, over the author's objections, to prevent the rebate
from going to those who paid it.
"Despite all I could do publicly and privately to get him to let
through a bill which would delay the sales tax increase, he remained
adamant. A third attempt to delay the un-needed tax was then made by
Senator Dills. The Speaker killed that, too, by refusing to let it be
fair, though Senator Dills was willing to do SO.
"Finally, on the last day, loudly professing to favor a sales tax
delay which he alone had prevented, the Speaker allowed a deferral bill
to pass. However, fearful that it might actually become law, and he
would thus be deprived of all that excess spending power, he without
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#364
any hearings or analysis, attached to the bill, a grossly unfair and
unequitable provision to distribute the excess income taxes to those
who hadn't paid them. By thus bypassing all the legislative processes
he professes to revere (presumably because such a proposal could not
have survived public hearings), he effectively killed, for the fourth
time in as many months, a sales tax delay. I cannot sign this bill
because in his haste to present something he could pretend was a
legitimate compromise attempt the bill is out of balance by $50 million.
"Throughout that last day, I made every attempt possible to get
the majority leadership of both houses to give me a simple, six-month
sales tax delay bill. I even offered a fair and substantially more
generous income tax rebate proposal which I promised would be in
writing and fully aired in time for 1973 tax returns.
"Responsible leaders of both parties, in both houses, agreed with
me, and in the final hour of the session, reconvened the conference
committee on SB 90 so that a simple amendment delaying the sales tax
increase could be passed. They accepted my promise that the income
tax rebate problem would be dealt with later this year in a fair,
responsible, timely and open manner. Three members of the conference
committee voted to delay the sales tax increase: two senators and one
assemblyman. One more assemblyman was needed. The Speaker was a
member of that conference and was that vote. He refused. Thus, for
the fifth and last time, he personally killed the sales tax increase
delay measure, just as he had vowed for many months he would do.
"The Speaker's original purpose of imposing the un-needed sales
tax prevailed. He knew that a fair bill, or a simple delay bill, would
be signed immediately, and he would be deprived of all that extra
spending power.
"He has confirmed beyond doubt that much needed tax relief can
only be achieved by the taxpayers themselves.
"Therefore I must return this bill unsigned."
# # #
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Gray