Ask the Scholar

{
    "localId": "118564482",
    "label": "Speeches - Reports to the People, 1970-1974",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/118564482"
}

{
    "id": "118564482",
    "sourceUrl": "https://catalog.archives.gov/id/118564482",
    "contentType": "document",
    "title": "Speeches - Reports to the People, 1970-1974",
    "citationUrl": "https://catalog.archives.gov/id/118564482",
    "identifierLocal": "840",
    "collections": [
        "Ronald Reagan's Governor's Papers of the Press Unit",
        "Governor Ronald Reagan's Speeches"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/reagan/7408624/40-840-7408624-P20-007-2017.pdf",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/reagan/7408624/40-840-7408624-P20-007-2017.pdf",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/reagan/7408624/40-840-7408624-P20-007-2017.pdf",
    "imageCount": 1,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/118564482",
    "naId": 118564482,
    "coverageEndDate": {
        "logicalDate": "1975-12-31",
        "year": 1975
    },
    "coverageStartDate": {
        "logicalDate": "1967-01-01",
        "year": 1967
    },
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/presidential-libraries/reagan/7408624/40-840-7408624-P20-007-2017.pdf",
    "mediaId": "845c0f9d82b6f090",
    "ocrText": "Ronald Reagan Presidential Library\nDigital Library Collections\nThis is a PDF of a folder from our textual collections.\nCollection: Reagan, Ronald: Gubernatorial Papers,\n1966-74: Press Unit\nFolder Title: Speeches - Reports to the People, 1970-1974\nBox: P20\nTo see more digitized collections visit:\nhttps://reaganlibrary.gov/archives/digital-library\nTo see all Ronald Reagan Presidential Library inventories visit:\nhttps://reaganlibrary.gov/document-collection\nContact a reference archivist at: [email protected]\nCitation Guidelines: https://reaganlibrary.gov/citing\nNational Archives Catalogue: https://catalog.archives.gov/\n02\n106/1\nOFFICE OF THE GOVERNOR\nSacramento, California\nMEMO TO THE PRESS\nContact:\nPaul Beck\n445-4571\n1-22-70\nFollowing is the text of a filmed Report to the People by\nGovernor Reagan which has been distributed to California television\nstations for use this evening.\nAn audiotape of the statement is available to radio stations by\ncalling 916-445-0101.\n\"Today, I asked the legislature to pass the most comprehensive and\nfar-reaching Omnibus Clean Air Law to battle smog ever proposed by any\nstate or nation.\n\"This progressive plan of action will further strengthen the state's\nelready tough controls on smog and provide the teeth needed to enforce\nthem.\n\"Our new program will crack down even harder on smog from cars and\ntrucks---and on stationary polluters like agricultural and industrial\nburning.\n\"It will give our Air Resources Board the authority to regulate\nthe chemical make-up of gasoline so that smog-causing gas evaporation\nand exhaust fumes from auto and truck engines can be cut significantly.\n\"It will require that smog controls on every new vehicle sold in\nCalifornia are properly adjusted before that vehicle can be registered.\nFalse certification will subject dealers to criminal prosecution.\n\"We are asking our Air Resources Board to come up with an assembly-\nline method of testing every 1972 model vehicle sold in California, and\nto find a workable device for roadside tasting by the Highway Patrol.\n\"This program also will enable California to significantly reduce\nthe heavy volumes of smoke and fumes which pour into our atmosphere\ndaily---by restricting smokestack emission and open burning.\n\"In addition, the Clean Air Law WILL give us the necessary tools\nto prevent future air pollution---caused by the over-concentration of\nfuel-burning power generating plants along the coast---by providing a\n20-year master plan for the location of such facilities.\n\"As I have said before, we are committed to an all-out war on smog.\nThis legislative package will give us more of the ammunition we need to\ngain final victory.\"\n#########\nEJG\nOFFICE OF THE GOVERNOR\nRELEASE: 5 P.M. JANUARY 22\nSacramento, California\nContact:\nPaul Beck\n445-4571\n1-20-70\nMEMO TO TELEVISION NEWS EDITORS\nThe accompanying color videotape contains a Report to the People\nby Governor Ronald Reagan for use AFTER 5 P.M, JANUARY 22, 1970.\nIt runs approximately one and one half minutes.\nPLEASE GUARD AGAINST PREMATURE RELEASE.\nFollowing is the text of the report:\n\"Today, I asked the legislature to pass the most comprehensive\nand far-reaching Omnibus Clean Air Law to battle smog ever proposed by\nany state or nation.\n\"This progressive plan of action will further strengthen the state's\nalready tough controls on smog and provide the teeth needed to enforce\nthem.\n\"Our new program will crack down even harder on smog from cars and\ntrucks\nand on stationary polluters like agricultural and industrial\nburning.\n\"It will give our Air Resources Board the authority to regulate\nthe chemical make-up of gasoline so that smog-causing gas evaporation\nand exhaust fumes from auto and truck engines can be cut significantly.\n\"It will require that smog controls on every new vehicle sold in\nCalifornia are properly adjusted before that vehicle can be registered.\nFalse certification will subject dealers to criminal prosecution.\n\"We are asking our Air Resources Board to come up with an assembly-\nline method of testing every 1972 model vehicle sold in California, and\nto find a workable device for roadside testing by the Highway Patrol.\n\"This program also will enable California to significantly reduce\nthe heavy volumes of smoke and fumes which pour into our atmosphere\ndaily by restricting smokestack emission and open burning.\n\"In addition, the Clean Air Law will give us the necessary tools\nto prevent future air pollution caused by the over-concentration of\nfuel-burning power generating plants along the coast by providing a\n20-year master plan for the location of such facilities.\n\"As I have said before, we are committed to an all-out war on smog.\nThis legislative package will give us more of the ammunition we need to\ngain final victory. II\n########\nEJG\n1/28/70\n70\nOFFICE OF THE GOVERNOR\nSacramento, California\nContact:\nPaul Beck\nthe\n445-4571\n1-26-70\nMEMO TO TELEVISION NEWS EDITORS\nWill you please be kind enough to return the enclosed videotape,\nfollowing its use, to:\nMr. Paul Beck\nOffice of the Governor\nState Capitol\nSacramento, California 95814\nThank you very much.\n##########\nOFFICE OF THE GOVERNOR\nSacramento, California\nMEMO TO THE PRESS\nContact:\nPaul Beck\n445-4571\n1-28-70\nFollowing is the text of a filmed Report to the People by\nGovernor Reagan which has been distributed to California television\nstations for use this evening.\nAn audiotape of the statement embargoed for use after 5 p.m.\ntoday---is now available to radio stations by calling 916-445-0101.\n\"Today I have submitted to the legislature the most comprehensive\nbattle plan for an all-out war against narcotics and drug abuse that has\never been drawn in the nation's history.\n\"By executive order, I have created the State Office of Narcotics\nand Drug Abuse Coordination. This new office will spearhead our campaign\nby marshalling all public and private forces to concentrate on drug\nabuse prevention, treatment and educational programs.\n\"We are increasing the number of State narcotics agents. And I am\noffering specific suggestions to give law enforcement agencies the\nweapons to crack down on dope pushers.\n\"This fight must begin in the first grade classroom by making our\nchildren completely aware of the dangers they face through experimentation\nwith drugs. And it must be carried all the way to university research\ncenters where the scientific facts about drug usage can be assembled.\n\"I am proposing legislation that will enable us to account for\nevery shipment of dangerous drugs from the time it leaves the\nmanufacturer until it reaches the physician, pharmacy or hospital where\nit is used.\n\"I am also suggesting that all government and private agencies join\nforces to find the cures that will help us get the victims of drug\nabuse back on the road to useful, productive lives.\n\"Our children are the prime target of the dope pusher and I am\nproposing laws that will increase the penalties against those who pray\nupon them.\n\"Make no mistake about it. This is a war. It requires not only the\ncooperation of every local, state and federal agency concerned with drug\nabuse, but also the cooperation of every citizen as well. If we don't\nwork together, we run the risk of losing a generation.\"\n#######\nWAS\nOFFICE OF THE GOVERNOR\nRELEASE: 5 P.M. JANUARY 28\nSacramento, California\nContact:\nPaul. Beck\n445-4571\n1-26-70\nMEMO TO TELEVISION NEWS EDITORS\nThe accompanying color videotape contains a Report to the People\nby Governor Ronald Reagan for use AFTER 5 P.M. JANUARY 28, 1970.\nIt runs approximately one and one half minutes.\nPLEASE GUARD AGAINST PREMATURE RELEASE.\nFollowing is the text of the report:\nToday I have submitted to the legislature the most comprehensive\nbattle plan for an all-out war against narcotics and drug abuse that has\never been drawn in the nation's history.\n\"By executive order, I have created the State Office of Narcotics\nand Drug Abuse Coordination. This new office will spearhead our campaign\nby marshalling all public and private forces to concentrate on drug\nabuse prevention, treatment and educational programs.\n\"We are increasing the number of State narcotics agents. And I am\noffering specific suggestions to give law enforcement agencies the\nweapons to crack down on dope pushers.\nThis fight must begin in the first grade classroom by making our\nchildren completely aware of the dangers they face through experimentation\nwith drugs. And it must be carried all the way to university research\ncenters where the scientific facts about drug usage can be assembled.\n\"I am proposing legislation that will enable us to account for\nevery shipment of dangerous drugs from the time it leaves the\nmanufacturer until it reaches the physician, pharmacy or hospital where it\nis used.\n\"I am also suggesting that all government and private agencies join\nforces to find the cures that will help us get the victims of drug\nabuse back on the road to useful, productive lives.\n'Our children are the prime target of the dope pusher and I am\nproposing laws that will increase the penalties against those who prey\nupon them.\n\"Make no mistake about it. This is a war. It requires not only the\ncooperation of every local, state and federal agency concerned with drug\nabuse, but also the cooperation of every citizen as well. If we don't\nwork together, we run the risk of losing a generation.\"\n######\nEJG\n2/15/20\nOFFICE OF THE GOVERNOR\nRELEASE: EMBARGOED FOR RELEASE\nSacramento, California\n5 P.M., TUESDAY,\nContact:\nPaul Beck\nFEBRUARY 15.\n445-4571\n2-15-72\n(Dr. Earl Brian, Director of the Department of Health Care Services,\nwill be available to newsmen for a background briefing for the plan\nproposed by Governor Reagan in the following text. The briefing will\nCouncil\nbe held in the governor's L Room at 2:30 p.m. today. Like our budget\nbriefing, no tape recordings for broadcast use or sound-on-film recording\nwill be permitted. Also, please note the fact sheet and Q and A in the\nback section of the attached folder).\nGovernor Ronald Reagan today proposed a bold and far-reaching plan\nto protect California's working men and women and their families from the\nfinancial ruin they would suffer if a terrible crippling accident or\ndevastating extended illness were to befall them.\nIn a Report to the People which Governor Reagan directed \"to the\n17 million Californians who would suffer the tremendous financial hardship\nsuch an illness could cause,\" he said, \"California's middle income\nfamilies need and deserve the kind of protection our program can and will\nprovide.\"\nThe governor noted that \"those who are the least affluent among us\nalready enjoy this kind of protection in the form of virtually unlimited\nhealth care benefits under Medi-Cal\"---al paid in full out of the hard-\nearned tax dollars of California's working men and women who, themselves,\ncan neither afford, nor do they today have access to, such catastrophic\nillness protection.\n\"You, the people who work day after day to support your family and\nprovide average health care, could be wiped out should such an illness\nstrike,\" the governor said in his Report to the People.\n\"The program we are proposing would assure protection from such\nfinancial ruin at a cost to the average family of about three dollars per\nmonth. In order to make such protection possible,' he explained, \"and\nto hold down the cost for everyone, each working member of a family would\nbe required to join the system by means of payroll deductions, or direct\npayments.'\nThe governor said the program- known as the California Health\nSecurity Plan \"would set no limits on those services which are most\noften used and are the most expensive, such as hospital and doctor bills.'\n- 1 -\nEach family would have \"the freedom of choice as to how they obtain\nnormal, everyday medical care for illnesses of less than a catastrophic\nnature, he said.\n\"Unfortunately, if an extended illness or a terrible crippling\naccident were to hit someone in your family,\" the governor said, \"the\nhealth insurance you hold would not cover the expense, and it would be\nexhausted very quickly if you were to suffer what is termed a catastrophic\nillness over a long period of time.\"\nGovernor Reagan said the plan he is proposing \"would not spawn a\nhuge\nnew\nbureaucracy\nnor would it inflat prices for health care as\nso many existing government programs have done.\n\"Instead,\" he said, \"it represents a reasonable and necessary\nalternative to the schemes being proposed by some at the federal level\nwho fervently desire the adoption of socialized medicine but hide their\nintentions under the cloak of what they describe as 'national health\ninsurance'.\"\n(Audiotapes of the governor's Report to the People are now available\nto radio newsmen members of the Capitol Press Corps in the governor's\noffice- for use on radio stations after 5 p.m. today).\nHere is the full text of Governor Reagan's televised Report to the\nPeople which has been distributed to California television stations for\nuse after 5 p.m. today:\n\"Last month, in my State of the State Message, I told you I believed\na system of health insurance could be developed which would protect\nevery Californian against the economic catastrophe which so often\naccompanies extended illness, regardless of how much medical insurance\na person may have.\n\"As you know, those who are the least affluent among us already\nenjoy this kind of protection in the form of virtually unlimited health\ncare benefits under Medi-Cal. Obviously, the most affluent in our\nsociety are able to take care of themselves.\n\"But you--the people who work day after day to support your family\nand provide average health care--could be wiped out should a devastating\nillness strike.\n\"My message is to the 17 million Californians who would suffer the\ntremendous financial hardship such an illness could cause. I'd like to\ntell you about a program I intend to propose to the legislature in the\ndays ahead which we are calling the California Health Security Plan.\n- 2 -\n\"Most of you now have some type of health insurance plan which you\nor your employer help pay for to meet a portion of your family's\nimmediate health needs. For most of us, that is enough.\n\"Unfortunately, if an extended illness or a terrible crippling\naccident were to hit someone in your family, the health insurance you\nhold would not cover the expense, and it would be exhausted very quickly\nif you were to suffer what is termed a catastrophic illness over a long\nperiod of time.\n\"We are talking about the kind of cases that average as much as\n$25,000 a year in medical expenses and bring financial ruin to the\nfamily.\n\"The program we are proposing would assure protection from such\nfinancial ruin at a cost to the average family of about three dollars\nper month. In order to make such protection possible and to hold down\nthe cost for everyone, each working member of a family would be required\nto join the system by means of payroll deductions, or direct payments.\nOf course, those already covered under Medi-Cal or in military programs\nwould not be eligible since they already enjoy such protection.\n\"Our program would set no limits on those services which are most\noften used and are the most expensive---such as hospital and doctor\nbills. It would not spawn a huge new bureaucracy because the risk would\nbe underwritten by existing insurance companies and, by and large, it\nwould be administered by them. Nor would it inflate prices for health\ncare as so many existing government programs have done.\n\"The plan avoids the trap of nationalized, socialized medicine.\nInstead, it represents a reasonable and necessary alternative to the\nschemes being proposed by some at the federal level who fervently desire\nthe adoption of socialized medicine but hide their intentions under the\ncloak of what THEY describe as 'national health insurance.'\n\"On the other hand, it would insure the working man and his family\nagainst the ruinous loss they would face from a catastrophic illness\nat a very nominal cost, thus leaving to each family the freedom of\nchoice as to how they obtain normal, everyday medical care for illnesses\nof less than a catastrophic nature.\n\"Lengthy illness plays no favorites. It can destroy all that most\nof us strive for.\n\"California's middle income families need and deserve the kind of\nprotection our program can and will provide. Your support in the\nlegislature will make it a reality. But you should know that we are\noffering a service not now available. The cost will be 36 dollars a\nyear from each working person. But, everyone will have to participate\nto make such low-cost insurance possible. The choice is up to you.\" \"\n# # #\n- 3 -\nEJG\n2L\nOFFICE OF THE GOVERNOR\nSacramento, California\nContact:\nPaul Beck\n445-4571\n3-4-70\nMEMO TO TELEVISION NEWS EDITORS\nWill you please be kind enough to return the enclosed videotape,\nfollowing its use, to:\nMr. Paul Beck\nOffice of the Governor\nState Capitol\nSacramento, California 95814\nThank you very much.\n# # # #######\nEJG\nOFFICE OF THE GOVERNOR\nRELEASE: 5 P.M., March 5, 1970\nSacramento, California\nContact:\nPaul Beck\n445-4571\n3-4-70\nMEMO TO TELEVISION NEWS EDITORS\nThe accompanying color videotape contains a Report to the People\nby Governor Ronald Reagan for use AFTER 5 P.M. MARCH 5, 1970.\nIt runs approximately one minute, 50 seconds.\nPLEASE GUARD AGAINST PREMATURE RELEASE.\nFollowing is the text of the report:\n\"Today, I asked the legislature to approve a far-reaching series\nof laws proposed by our administration to further strengthen and\naccelerate the state's overall program to protect consumers and\nlegitimate businessmen from the unscrupulous entrepreneur.\n\"Government has a vital role to play in looking out for the consumer\ninterests of private citizens, so long as this does not unduly interfere\nwith the legitimate, balanced workings of our competitive free enterprise\nsystem.\n\"To better coordinate the state's many and varied consumer\nprotection activities, I am proposing the creation of the first\nDepartment of Consumer Affairs of any state in the nation. The new\ndepartment will, for the first time, provide citizens with a central\ncontact point for processing consumer complaints.\n\"In addition, I am asking that County Boards of Supervisors be given\nauthority to establish local consumer affairs offices run by their own\nSealers of Weights and Measures.\n\"Time prohibits me from going into all the details, but these five\nprinciples outline areas in which government must move to protect the\nconsumer and the legitimate businessman.\n\"lst Consumer protection against fraud. Too often individuals\nhave little opportunity to investigate the integrity of a business\nbefore making a purchase.\n\"2nd\nThe consumer has a right to know the goods he buys are safe\nfor himself and his family.\n\"3rd The consumer must also know he has the best selection and free\nchoice in the marketplace the result of true competition without\nconspiracy or artificial restraints,\n\"4th The consumer must have adequate and responsive channels\nthrough which he can present grievances.\n- 1 -\nMEMO TO TELEVISION NEWS EDITORS (Cont 'd.)\n\"and 5th---The consumer is at a disadvantage when he doesn't know\nthe workings of the market place---so one of our basic goals is\neducation to help buyers become more competent in exercising free choice\namong the goods and services available.\n\"I am confident that through the creative teamwork of responsible\ngovernment and the free enterprise-private sector, we can continue to\nhelp all California consumers.\"\n#########\n- 2 -\nEJG\nC-L\nTHE\nOFFICE OF THE GOVERNOR\nRELEASE: RGOED FOR RELEASE\nSacramento, Californ\n4:- P.M., THURSDAY,\nContact: Ed Gray\nAPRIL 27\n445-4571\n4-27-72\n(The following is the text of a Report to the People by Governor Reagan.\nIt is embargoed for use after 4:30 p.m. today. A background briefing on\nthe program outlined in the text will be held in the Governor's Office\n(Council Room) today at 1:30 p.m. Further details will be announced at\nthat time. Like our budget briefing, no tape recordings for broadcast\nuse or sound on film recording will be permitted at the background\nbriefing. However, Lt. Gov. Ed Reinecke will be available for interviews\nwith newsmen, including radio and TV, immediately after the briefing is\nconcluded. It should run from 45 minutes to an hour.)\nHere is the text:\n\"The use of drugs--especially among the young--continues to be a\nscourge of our society. No venom could be more deadly than drug\naddiction. It claims its victims in countless personal tragedies,\ndestroys individuals, tears families asunder and weakens the moral\nfiber of a people whose greatest resource and hope for the future is\nits youth.\n\"Fortunately, through the coordinated efforts of law enforcement\nagencies at every level, we are making significant headway in cutting\nthe flow of narcotics and dangerous drugs into the country.\n\"Because we believe that drug abuse can be prevented through\neducation, and drug addiction alleviated by medical science, I am today\nproposing a massive legislative program aimed at stepping up the battle\non these two fronts---in our neighborhoods and our schools.\n\"Our program will bolster drug abuse education through better\npreparation of teachers in our schools as well as other educational\nprograms for parents by volunteer organizations at the community level.\n\"To treat those persons already victimized by drugs, I am proposing\nthe immediate development of additional community-based treatment program\nThe state will pick up the lion's share of the cost in this effort.\n\"Our program also will divert the first time user or possessor of\ndrugs away from our jails and prisons. He will be given the opportunity\nto participate in treatment programs designed to keep him from becoming\naddicted to drugs.\n\"This does not mean we are becoming soft on drug offenders. We will\ncontinue to exert every effort to punish the pusher and to take the\nprofit out of drugs. But we must prevent addiction whenever possible,\nand this can't be done by simply sending the first offender to jail---\nor putting him on probation and allowing him to go back on the streets\nagain with no community help.\n\"A major emphasis of our program is on local treatment programs.\n\"This is a massive undertaking and will cost an estimated $14\nmillion a year. But, with the safeguards we have built into the program,\nI believe our citizens will get their money's worth.\n\"And, we will have turned the corner on drug abuse in California.\"\n# # #\nEJG\nof\nOFFICE OF GOVERNOR RONALD REAGAN\nRELEASE: 4 P.M. October 10\nSacramento, California 95814\nEd Gray, Press Secretary\nPLEASE GUARD AGAINST PREMATURE\n916-445-4571\n10-10-72\nRELEASE\n#561\n(MEMO TO NEWSMEN: The following is embargoed for use after 4 p.m. today,\nOctober 10, 1972. Please guard against premature release.)\nGovernor Ronald Reagan today proposed a 10 percent across-the-board\nslash in the state income tax, plus a major reduction in the local\nproperty tax burden, and said he will call a special statewide election\nearly next year to make sure the people themselves are able to secure the\ntax relief they need---at the ballot box.\nIn taking the 6-point plan directly to the public in a televised\n\"Report-to-the-People,\" Governor Reagan became the first governor of a\nmajor state in recent history to propose a broad tax reduction, including\na permanent, ongoing income tax cut.\nNoting that \"for the third straight year a small band of legislators\nwere able to frustrate our efforts to give you a tax reduction which is\nlong overdue,\" the governor said he will ask the legislature, when it\nreconvenes November 8, to approve the ballot measure and he set a deadline\nof January 30 for the legislature to act.\nHe said the measure \"will provide much needed help for low-wealth\nschool districts and reduce the property tax, plus an across-the-board\ncut in the California income tax.\n\"If the legislature agrees to put this on the ballot (by January 30),\nfine. If not,\" he said, \"we'll put it on the ballot anyway.\" Governor\nReagan said he would do this by \"personally leading an initiative drive\"\nto put such a measure to a vote of the people.\n\"I then will call a special election which I am authorized to do\nby law---just as soon as you have signed the petitions,\" he said in the\nbrief televised message.\nThe governor's six-point proposal, if passed by the voters, would:\n1) Slash state income taxes by at least 10 percent on a permanent,\nongoing basis.\n2) Reduce property taxes by at least doubling the present homeowner\nexemption.\n3) Provide tax relief for renters.\n- 1 -\n#561\n4) Increase state aid to schools by $200 million in new money, and\nprovide nearly $1/4 billion for school property tax rollbacks.\n5) Freeze property taxes at the reduced level. The local\nelectorate would determine the property tax rate in the future.\n6) Require a two-thirds vote of the legislature to increase any\nstate tax.\n\"To accomplish the proposed school tax rollbacks and property tax\nreductions,\" he said, \"there will be a shift adding one cent to the sales\ntax. One percent added to the Bank and Corporation tax will make possible\na cut in the business inventory tax.\n\"Federal revenue sharing will support the increased school funding.\nAnd, the ongoing surplus which has resulted from our welfare and\nMedi-Cal reforms will be committed to income tax reduction,\" the\ngovernor said.\nGovernor Reagan pointed out that \"our proposed income tax cut would\nnot have been possible if we had not achieved substantial savings in\nwelfare and Medi-Cal. The reforms not only have enabled us to keep the\ncosts of these programs well below projected expenditures but also have\nhelped cut the state's welfare caseload by some 220,000 persons during\nthe past 17 months, while increasing grants to needy families by almost\n30 percent,\" he said.\nThe governor said that although members of his administration will\nbe working out all the details of his tax relief plan in the weeks ahead\nso that the program will be ready to present to the legislature November\n8\n\"we now know that the tax reductions we are proposing are feasible,\nrealistic and fiscally responsible.\"\nHere is the text of Governor Reagan's taped Report-to-the-People\nwhich was distributed to television and radio station news directors\naround the state for use on newscasts after 4 p.m. today:\n\"Last Spring, for the third straight year, we proposed a plan for\nreducing property taxes. And, for the third straight year a small band\nof legislators were able to frustrate our efforts to give you the tax\nreduction which is long overdue.\n\"At that time, I told you I intended to propose an alternative\nmethod for returning to you, the taxpayers, the ongoing surplus that has\nresulted from our Medi-Cal and welfare reforms.\n2 1 I\n#561\n\"The legislature will reconvene November 8, and on that day I will\nask them to approve a ballot measure for submission to you which, if\nyou approve, will provide much needed help for low-wealth school\ndistricts and reduce the property tax, plus an across-the-board cut in\nthe California state income tax.\n\"If the present legislature or their successors have not acted by\nJanuary 30, I will personally lead an initiative drive to put such a\nmeasure on the ballot by petition.\n\"I then will call a special election which I am authorized to do\nby law just as soon as you have signed the petitions.\n\"The plan we are proposing, the one on which you will be voting:\n\"Will reduce school property taxes, by at least doubling the\npresent homeowner exemption.\n\"Everyone will get at least a 10 percent cut in their state\nincome tax.\n-\"And, school aid will be increased by $200 million in new money,\nand nearly $1/4 billion will be provided for school property tax rollbacks.\n\"The plan also will provide relief for renters.\n\"To accomplish the proposed reduction, there will be a shift adding\none cent to the sales tax. One percent added to the Bank and Corporation\ntax will make possible a cut in the business inventory tax.\n\"Federal revenue sharing will support the school funding and the\nongoing surplus will be committed to income tax reduction.\n\"You will further be voting to freeze your property tax at the\nreduced level, and your votes will control it in the future.\n\"A two-thirds majority vote of the legislature will be required in\nthe future to increase any state tax.\n\"And, remember, this time you will have the opportunity to decide.\n\"If the legislature agrees to put this on the ballot, fine.\nIf not, we'll put it on the ballot anyway.\"\n######\n- 3 -\nGray\n2/8/73\nAee\nPage\n2\nfor\nOFFICE OF GOVERNOR RONALD REAGAN\nRELEASE: Immediate\nSacramento, California 95814\nEd Gray, Press Secretary\n916-445-4571\n2-8-73\n#64\nMEMO TO NEWSMEN: Full details of the following revenue control and tax\nreduction program being proposed by Governor Reagan will be presented at\na background press briefing in the governor's office today, Thursday,\nFebruary 8, at 2 p.m. In line with the background briefing policy which\nhas been long established by this office in connection with the budget\nand other Reports to the People, we are asking that no film cameras or\nbroadcast tape recorders be used during the briefing itself. However,\nfollowing the briefing, radio and television newsmen who wish to film\nand record interviews with members of the briefing team are invited to\ndo SO.\nGovernor Ronald Reagan today proposed a long-term and far-reaching\nprogram to reduce state taxes by imposing a constitutional control on\nthe total amount of state revenues which California state government\ncan take from the people in taxes in the years ahead.\nThe governor outlined his plan---which also includes a permanent,\nongoing 10 percent slash in state income taxes beginning in calendar\n1974--in a radio and television \"Report to the People\" scheduled for\nbroadcast this evening.\nHe said he will ask the legislature to place major elements of the\nproposal on the ballot to be voted on by the people at a statewide\nelection later this year. If the legislature does not agree to the\nconstitutional amendment, the governor will head a petition drive to\nplace the plan on the ballot by initiative.\nThe overall program, first of its type to be proposed by any\ngovernor, proposes a return of the great bulk of the state's $850 million\nsurplus to the people by means of a tax credit on this year's income\nand a delay in the one cent sales tax increase which is slated to go into\neffect June 1. A lesser portion of the surplus would be set aside for\none-time construction projects such as making the State Capitol Building\nearthquake safe. Returning the surplus to the people can be accomplished\nby the legislature during the current session.\nThe governor said that stringent economies in the management in\nstate government, more economical operation of the state's welfare and\nMedi-Cal programs, and an upturn in the California economy, have made\npossible the permanent 10 percent across-the-board reduction in the\nstate income tax he is proposing. It would be included in the\nconstitutional amendment to be voted on by the people.\n- 1 -\nReport to the People\nThe most striking and far-reaching element of the overall program\nwould be the imposition of a constitutional limit on the percentage\nof total personal income which state government can take from the\npeople in the years ahead. This also would be accomplished by\nconstitutional amendment or initiative.\nState revenues are projected to go up from the current $9.8 billion\nto $47 billion 15 years from now, five times the current level. The\n\"revenue control\" function which the program would achieve would\ngradually reduce the 8.75 percent of total state revenues which the\nstate presently takes down to 7.15 percent in 1989 a reduction\nof\nalmost 20 percent in the state tax burden.\nThus, after 15 years, state government would be taking in little\nmore than half ($27 billion) of the revenues it would be consuming\nwithout the constitutional limitation on revenues,\nThe almost 20 percent reduction in state taxes which would occur\nduring the 15-year period is nearly equivalent to the entire income\ntax now received by the state.\nBut, over the same period, the state will continue to experience\ngenerous revenue growth to meet essential needs. In fact, the total\nrevenues of the state will have climbed nearly three times above the\npresent level ($9.3 billion) in 1989, if present economic growth trends\ncontinue.\nTo meet any possible severe economic downturns or natural disasters\nin the years ahead, the governor's plan provides a continuing emergency\nfund amounting to up to 4 percent of the budget of any given year.\nHere is the text of Governor Reagan's televised Report to the\nPeople\n\"I'm quite sure you already know the state will have a one-time\nsurplus of $850 million at the end of the fiscal year. This has been\nmade possible by stringent economies in the management of state\ngovernment, by savings realized from the welfare and Medi-Cal reforms,\nthe upturn in business and federal revenue sharing. But whatever the\nreasons, it is-taxpayers' money and it should be returned to you the\ntaxpayer.\n-2-\nReport to the People\n\"We therefore are proposing a comprehensive program of revenue\ncontrol and tax reduction. First, with regard to the one-time surplus,\nwe think it should be used in part to delay the increase in the sales\ntax now slated for June 1. The bulk of the remainder should be given\nto you as a rebate on the income tax you owe in 1974. You will simply\ndeduct a percentage of your tax and put it back in your pocket. A\nlesser portion of the surplus will be set aside for one-time construc-\ntion projects such as making the Capitol Building earthquake safe.\n\"That takes care of the one-time surplus. But, in addition, our\neconomies have made possible a permanent ongoing tax cut. We propose\na 10 percent across-the-board reduction in the state income tax.\n\"And finally, we are proposing a long-term reduction of the state\ntax burden and a constitutional limit on the percentage of the people's\nincome that can be ever taken by government. This, of course, means\nthat you will vote on this proposal since it involves a constitutional\namendment.\n\"State revenues are projected to go up from a current $9.8 billion\nto $47 billion in 1989. If nothing is done to curb this, the state\nbudget in 15 years will be five times its present size.\n\"Before 1930, federal, state and local governments were taking\n15 cents out of every dollar you earned. By 1950 it was 30 cents.\n\"Today government's share of every dollar you earn is more than\n43 cents. Obviously freedom itself is in danger if we continue this\nrate of increase. The state is presently taking more than 8½¹₂ cents\nfrom each dollar you earn. In addition to the return of the surplus,\nand the 10 percent income tax cut, we are asking you to vote an annual\nreduction of that 8½ percent until at the end of 15 years it has been\nreduced to approximately 7 cents, thus limiting the total amount state\ngovernment can ever take in taxes. This amounts to a reduction in your\ntotal state taxes of almost 20 percent over a 15-year period. That is\nalmost the equivalent of wiping out the entire present state income\ntax and yet the state will still have nearly three times as much\nrevenue as it has now to meet the problems of growth.\n\"In the next few weeks, as soon as the constitutional language\ncan be written, this proposal will be submitted to the legislature with\na request that they approve putting it on the ballot at which time I\nwill call a special election. In the meantime, you will be given full\ninformation on all the details of this entire plan.\"\n-3-\nReport to the People\nHere are some prepared comments of noted tax experts and economists\non the governor's program:\n--CRAIG STUBBLEBINE, Ph.D., PROFESSOR OF ECONOMICS, CLAREMONT MEN'S\nCOLLEGE, CLAREMONT GRADUATE SCHOOL CALIFORNIA:\n\"A constitutional initiative imposing strict limits on the taxation\nof personal income and wealth is a direct and effective avenue by which\nCalifornians may register their preferences with respect to state\nspending. Should this initiative pass, Californians may look forward\nto a progressive reduction in the burden of state taxation.\"\n--WILLIAM A. NISKANEN, Ph.D., PROFESSOR, GRADUATE SCHOOL OF PUBLIC\nPOLICY, UNIVERSITY OF CALIFORNIA, BERKELEY:\n\"The proposed tax limit amendment represents a fundamental change\nin the way we conduct our public business in the State of California.\nOur present governmental processes do not serve us very well, primarily\nbecause our elected representatives and public officials have an incen-\ntive to spend more for government activities than is valued by the\npopulation. The proposed tax limit amendment is based on an assumption\nthat the voters in California have the intelligence, information and\nthe right to determine the total state tax revenues.\"\n--C. LOWELL HARRISS, Ph.D., PROFESSOR OF ECONOMICS, COLUMBIA\nUNIVERSITY, NEW YORK:\n\"One of the greatest needs in American government today is con-\ntrol of the growth of spending. The tax limitation plan that Governor\nReagan has proposed for California seems to me to offer a unique and\nvaluable opportunity for citizen participation in the spending/taxation\nprocess.\"\n-MILTON FRIEDMAN, Ph.D., PROFESSOR OF ECONOMICS, UNIVERSITY OF\nCHICAGO:\n\"All attempts to keep down government spending and taxes by con-\ntrolling individual programs have failed--defeated by a coalition of\nspecial interests attached to specific programs. The only hope of\nmeeting the public's demands for an effective lid on spending is by\ntackling the budget as a whole, rather than piecemeal. The governor's\nproposed tax and spending ceiling to be included in the Constitution is\nan imaginative venture in this direction. It provides for expenditure\ncontrol responsibly, allowing for growth in the state's economy, for\nemergencies, and for a gradual transition to a lower relative level.\n\"The governor's proposal has an importance that extends far beyond\nCalifornia. It will offer a beacon to every other state and to the\nfederal government. Citizens throughout the land are coming to recog-\nnize that they are not getting their money's worth for the 40 percent\nof their income that is being spent for them by governmental units,\nfederal state and local. They are demanding that they be permitted to\nkeep more of their own income to spend in accordance with their own\nvalues. California may show them how to achieve this objective.\"\n--ROGER FREEMAN, Ph.D., SENIOR FELLOW, THE HOOVER INSTITUTION:\n\"Governor Reagan's plan to reverse the trend of ever-increasing\ntax burden and of a continuous and limitless expansion of governmental\nspending and to reduce the tax load gradually over the next few years\nis excellent. I expect it to be received with enthusiasm by the citi-\nzens and taxpayers of California. In fact, I feel that California may\nin this be setting a precedent and example for the entire nation.\nResidents of other states may soon be clamoring for comparable relief\nfrom exorbitant tax bills.\n\"I believe that the approach used by Governor Reagan--to reduce\nthe tax burden in small annual steps and to relate the tax limit to\nthe personal income of our citizens--is the only practicable approach\nto implement it.\"\n-4-\nReport to the People\n--MARTIN ANDERSON, Ph.D., SENIOR FELLOW, THE HOOVER INSTITUTION:\n\"The governor's plan offers the people of California a clear\nopportunity to not only stop the increasing tax burden, but also to\nreverse it. It is a truly innovative, eminently sensible tax reform\nplan. If the people of California accept it--and I think they will--\nit will mean more money in the pockets of Californians to be spent for\nthings they personally value and less money for government bureaucrats\nto dissipate.\n\"We are now at the point where government spending has become so\nwild and exuberant that it will only be controlled by restricting the\nflow of tax money into the government coffers. The governor's plan is\na rational way to restrict this flow gradually and may be the only\nviable alternative to keep us from a future fiscal crisis that could\nseverely damage each and every one of us.\"\n--JAMES BUCHANAN, Ph.D., DIRECTOR OF THE CENTER FOR PUBLIC CHOICE,\nVIRGINIA POLYTECHNIC INSTITUTE:\n\"Unfortunately, evidence accumulates that legislatures respond\nlargely to the pressures of the entrenched government bureaucracy,\nrather than to the public at large. Until the legislature is forced\nby constitutional restriction to face up to the conflicts between the\ninterest of the citizens and that of the bureaucracy, they will con-\ntinue to take the route of least resistance. This has been, until now,\nthat of allowing government budgets and taxes to continue to grow.\nI applaud the initiative taken by Governor Reagan of California in\nattempting to resolve this major problem.\"\n--PETER DRUCKER, Ph.D., MANAGEMENT CONSULTANT, MEMBER OF THE\nFACULTY OF CLAREMONT MEN'S COLLEGE GRADUATE SCHOOL, CLAREMONT:\n\"A legislature needs an absolute ceiling on the tax dollars which\nit receives, so that it can get about the business of setting\npriorities. Otherwise, legislators can't and won't say 'no' to spend-\ning proposals. This is the objective reality of our time.\"\n--DAN THROOP SMITH, SENIOR RESEARCH FELLOW AT THE HOOVER\nINSTITUTION, AND LECTURER AT GRADUATE SCHOOL OF BUSINESS, STANFORD\nUNIVERSITY:\n\"Governor Reagan's proposal will provide a basis for more rational\nuse of state funds and should assure the development of better programs.\nIt should set a precedent for other states. Its adoption in California\nshould help to assure the success of the efforts now being made in\nWashington to limit federal expenditures.\"\n# # #\n-5-\nMAJOR FEATURES OF THE GOVERNOR'S REVENUE CONTROL AND TAX REDUCTION\nPROGRAM.\n1.\nREVENUE LIMITATION\nState tax revenues, except federal intergovernmental transfers,\nemployment insurance trusts, and excluded user fees, shall be limited\nto that percentage of state personal income derived from dividing the\n1973-74 tax revenues by the 1973 state personal income.\n2. TAX REDUCTION\nThe maximum allowable percentage of state personal income which\nthe state may take as tax revenues in 1974-75 and succeeding years\nshall be reduced by 0.1 percent per year, except that if the allowable\npercentage would produce less in revenues in a given year than 360\nconstant (1967) dollars times that year's Consumer Price Index\ndeflator times the state population, the constant dollar limit amount\nmay be used. Upon determination of the tax limit for the prospective\nyear, the legislature shall adjust the tax rates so as to produce a\nlevel of revenues no greater than the limit, except as provided in the\nEmergency Fund section below.\n3.\nEMERGENCY PROVISIONS\n(a) Emergency Fund\nThe state shall create and maintain an Emergency Fund in an\namount not to exceed 0.2 percent of state personal income. The fund\nmay be appropriated by the legislature to meet emergency needs due to\neconomic, natural or other disaster outside the control of the\nlegislature and which result in costs exceeding the tax limitation.\nAfter exhausting permissible internal borrowing and federal emergency\nfunds which may be available, the Emergency Fund may be utilized upon\ndeclaration by the governor of the existence within the state of\nCalifornia of a fiscal emergency, such declaration being concurred\nin by a 2/3 vote of both houses of the legislature. The Emergency\nFund shall be created initially out of tax revenues received by the\nstate which are in excess of the tax limit and shall be re-created\neach year either through carry-over of the preceding year's Emergency\nFund or by tax revenues in excess of the limit for that year. Before\nthe legislature adjusts the tax rates, the Emergency Fund shall be\ncreated, or re-created in the event that all or part of its funds\nhave been consumed.\n-1-\n(b) \"Safety Valve\" - Vote of the People.\nUpon exhaustion of the resources available in the Emergency Fund,\nand if the fiscal emergency continues, the legislature may, by a 2/3\nvote, with the concurrence of the governor, impose a specific tax\nincrease for a specific state purpose, required to meet the existing\nfiscal emergency. Such tax increase shall remain in effect no longer\nthan the date of the next regular statewide election, unless an\nextension beyond that date is adopted through a vote of the people\na t such regular Statewide election.\n4. SPECIAL TAX LIMITATION INCREASE\nThe legislature may, by a 2/3 vote, place on the ballot for the vote\nof the people a referendum proposal to defer the annual decrease in the\ntax limit or to increase the tax limit, which shall be for a specific\npurpose and shall involve the increase of a specific tax. If the\nreferendum is approved by the voters, the tax limit level then in\neffect shall be increased only by the amount specified in such proposal.\n5.\nLIMIT COMPUTATION.\nEstimates of State personal income and revenue limitation shall be\nmade by an Economic Estimate Commission, consisting of the State\nController (Chairman), the Legislative Analyst and the Director of\nFinance. They shall consult with recognized professional economists.\nEstimates shall be produced and published by the Commission on October\n1 and April 1 of each year for that fiscal year and the succeeding\nfiscal year. Any surplus for a given fiscal year shall be determined\nand published by the Commission, based upon actual revenue and total\npersonal income data, on August 1 following the close of that fiscal year\n6.\nLOCAL GOVERNMENT TAX LIMITS\nThe provisions of Chapter 1.5, Part 4, Division 1, of the Revenue\nand Taxation Code, with the exception of Section 2164.3, shall be\nincorporated in the initiative.\n7.\nINTERGOVERNMENTAL COORDINATION OF THE LIMIT\nThe tax limit may be raised by action of the legislature if the\nState increases expenditures as required by Federal law or court action\nto take over a local function, in which event local taxes shall be\nreduced dollar-for-dollar. The revenue limitation shall be lowered if\nthe state reduces expenditures when required by federal law or court\naction to transfer a function to the Federal Government.\n-2-\n8.\nTAX INCREASES\nNo State tax may be increased if such increase will produce revenues\nin excess of the revenue limitation. The increase of any State tax\nwithin the limitation shall require a 2/3 vote of the Legislature and\napproval of the Governor. A 2/3 vote of the Legislature shall be\nrequired to override a Governor's veto of a tax increase.\n9.\nTAX SURPLUS FUND\nThe State shall create a Tax Surplus Fund for any surplus of revenue\nover expenditures and/or any surplus of revenues over the revenue\nlimitation within a given year. The Tax Surplus Fund shall be used\nfirst to replenish the Emergency Fund, if necessary, and then only to\nrefund the remaining surplus to the people or decrease tax rates, as\ndetermined by the Legislature with the concurrence of the Governor.\nDEFINITIONS\n1.\nSTATE PERSONAL INCOME\nThe total personal income of California as defined by the U.S.\nDepartment of Commerce and including:\n-income received by individuals from their labor and personal\ninvestment;\n-Social Security payments, minus personal contributions;\n-welfare and other transfer payments;\n-the imputed rental value of owner-occupied dwellings;\n-income of non-profit institutions;\n-government interest.\nState personal income excludes income to profit-making corporations\nand other business establishments.\n2.\nFEDERAL INTERGOVERNMENTAL TRANSFER PAYMENTS\nAmounts received by California from the Federal Government as fiscal\naid in the form of shared revenues and grants-in-aid, as reimbursements\nfor performance of general government functions and specific services\nfor the Federal Government, or in lieu of taxes; includes the large sums\nof money received from the Federal Government for welfare, education,\nhealth care and highways.\n3.\nEMPLOYMENT INSURANCE TRUSTS\nRevenue from contributions required of employers and employees for\nfinancing social insurance programs operated by the State and earnings\non assets held for such systems. The major trust funds in California\nare Unemployment Insurance, Disability Insurance, Public Employees\nRetirement System and Workmen's Compensation.\n4.\nCONSTANT (1967) DOLLARS\nDollars with 1967 purchasing power as established in the national\nConsumer Price Index. A revenue limit expressed in constant dollars\nallows for the expansion of revenues to meet both inflation and\npopulation growth.\n5.\nINTERNAL BORROWING\nProcedures by which State funds may legally borrow from other State\nfunds on a temporary basis to meet a cash flow deficiency.\n6.\nFEDERAL EMERGENCY FUNDS\nFunds available under Public Law 91-606, the National Disaster\nAssistance Act, et al., to meet a national disaster declared by the\nPresident.\n7.\nSTATE TAX REVENUES\nAll receipts to the State Government of California. The major\ncomponents of State tax revenues are:\n-the State sales tax;\n-State personal income tax;\n-State corporate income tax;\n-State inheritance and gift tax;\n-motor vehicle taxes;\n-cigarette taxes;\n-alcoholic beverage taxes;\n-horse racing taxes;\n-insurance taxes;\n-miscellaneous taxes, licenses and fees.\n#####\n-4-\n-\n85\nTTD\nK\n2/15/74\nOFFICE OF GOVERNOR RONALD REAGAN\nRELEASE: 12 NOON FRIDAY\nSacramento, California 95814\nFEBRUARY 15, 1974\nClyde Walthall, Press Secretary\n916-445-4571\n2-15-74\nPLEASE GUARD AGAINST PREMATURE\nRELEASE\n#102\nGovernor Ronald Reagan today issued the following statement:\n\"I know I won't be telling you something new or unusual when I\nsay we haven't as much gasoline as we've been used to having in the\npast.\n\"But our situation here in California through the next few months\nis not an emergency. With a little care and consideration, we'll have\nenough for all our necessary driving.\n\"Everyone can have about 80 percent of the gasoline we had before\nthe energy shortage. This means we each only have to hold down our\ndriving by 20 percent.\n\"Eliminating some unnecessary errands, doubling up now and then,\nholding down speed should do it.\n\"There is no need for panic or panic buying with the long lines\nwe've seen on television. May I suggest not buying until you have less\nthan half a tank.\n\"We have a contingency plan but we'd rather not have to use it,\nand we won't, if we all just eliminate one mile out of five. There\nwill be an adequate supply for everyone.\"\n######\nWalthall"
}