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jer Clinton's child care boost not a big priority on Hill By Cheryl Wetzstein by 2002. THE WASHINGTON TIMES In addition, states, which have smaller welfare caseloads, can New funding for child care, a transfer 30 percent of their welfare "steadfast" priority issue of the funds to child care if they need to, Clinton administration, remains she said. bottled up in Congress, a House Regarding other child care is- aide told state lawmakers last sues, such as setting standards for week. quality care or rates for subsidies, The issue will be discussed these are state issues, not federal Wednesday at a Senate Finance ones, the staff member said. subcommittee hearing led by Sen. As a result, GOP leaders "feel John H. Chafee, Rhode Island Re- we've covered the bases in child publican. care legislation," she said. "Now Mr. Chafee is one of several we want to wait and see and members of Congress to introduce hear from the states." bills to boost child care funding Senate staffers representing and make other changes. However, GOP and Democratic lawmakers none of the bills is moving with any and a Clinton administration offi- speed, despite high-profile atten- cial offered alternate views. tion from the White House and "There is a tremendous need for President Clinton's request for child care," said Joan Lombardi, a nearly $22 billion in new funding. top official with the Department of A primary reason for congres- Health and Human Services. sional delay is that many GOP States have waiting lists of par- leaders believe states have ample ents who need child care, she said, funds to run their child care pro- citing care at "odd hours," on grams, a GOP staff member from weekends, in rural locations and the House Ways and Means Com- for infants as the most urgent mittee told state legislators at a needs. meeting held by the National Con- ference of State Legislatures. Ms. Lombardi also disputed the The GOP leaders' attitude is idea that states have ample child "We have done what we're going to care funds, noting that states are do with child care," the staffer using their child care allocations on schedule. said. She explained that the 1996 wel- Senate staff members said that fare law added $4 billion in new an excellent bill could be forth- funds to the federal government's coming and urged state lawmakers primary child care program, to document their child care boosting its spending to $11 billion needs. The Washington Times SUNDAY, APRIL 19, 1998 PAGE 7 4TH STORY of Level 1 printed in FULL format. Copyright 1998 The Washington Post The Washington Post May 10, 1998, Sunday, Final Edition SECTION: A SECTION; Pg. A06 LENGTH: 645 words HEADLINE: Clinton Pushes Child Care Bill; GOP Criticizes Package as Ignoring Stay-at-Home Mothers BYLINE: Peter Baker, Washington Post Staff Writer DATELINE: WILLIAMSBURG, May 9 BODY: President Clinton, trying to rescue one of the signature initiatives of his second term, needled Congress today to pass his $ 22 billion child care proposal, which has stalled under Republican criticism that it slights mothers who do not work outside the home. Using the Mother's Day holiday as an opportunity to pitch his plan, Clinton said government has an obligation to help parents trying to juggle work and family and he criticized legislation that he said would hurt women trying to collect support from absentee fathers. "To make that tribute to motherhood," the president said in his weekly radio address, "we must all take responsibility for the care of our children. For many mothers who work, as my mother did, peace of mind requires affordable, quality child care." Clinton has made child care a top priority this year and may try to turn it into a central issue in this fall's midterm congressional campaigns if, as now appears likely, Republicans refuse to pass it. The five-year Clinton plan would increase child care subsidies and tax credits for working families, expand Head Start and other early childhood programs and make it easier to conduct background checks on child care providers. In his radio talk, Clinton offered rhetorical nods to GOP criticism that his proposal leaves out mothers who choose to stay at home with their children. "As Mother's Day reminds us, governments don't raise children. Parents do," he said. "There is no substitute for a mother's love or a parent's responsibility. We, too, in the national and state governments, however, have a responsibility." Tied to the address, the administration released two new reports offering parents guidelines on finding quality child care and screening providers. Clinton also slammed a provision in pending bankruptcy reform legislation that he said would require a mother to "compete with powerful banks and credit card companies" if a father declares personal bankruptcy. Sen. John H. Chafee (R-R.I.), whose child care bill incorporates some elements of Clinton's plan while offering a tax credit to stay-at-home PAGE 8 The Washington Post, May 10, 1998 parents, said the White House has not devoted enough energy to the issue. "The momentum that we were building toward consensus on a child care bill earlier this year has sputtered out," Chafee said. "It's going to take a stronger and much more active push from the White House to get the proverbial ball rolling again on child-care legislation." Child care was one of several legislative priorities Clinton raised today during a closed-door meeting with Senate Democrats here in Williamsburg, according to aides, along with tobacco control, education and his proposed health care "bill of rights." Clinton spent more than an hour at the annual retreat for his party's senators that "primarily centered on the unified [Democratic] message and also his reiterating to them his commitment to work with them not only on legislation in the next six months but also to help Democrats in November," said presidential counselor Douglas B. Sosnik. After a round of golf, Clinton flew to Boston tonight and attended a $ 700,000 fund-raiser for the Democratic National Committee. Republicans, during their weekly radio address today, pressed the case for legislation to impose limited sanctions on countries that persecute religious minorities, a bill opposed by Clinton as tying his hands in foreign policy. Rep. Frank R. Wolf (R-Va.), a champion of the bill, set for a House vote in coming days, said the United States cannot ignore the systematic abuses in places such as China, Tibet and Sudan. "This nation was founded by men and women who wanted nothing more than the freedom to practice their faith without government oppression," Wolf said. "If we don't stand up for the religious rights of people around the world, who will?" LANGUAGE: ENGLISH LOAD-DATE: May 10, 1998 JUN-02-1998 11:38 FROM CDF 5TH FL.662-3550 TO 92024562878 P.01/02 DEAR BE GOOD LOR TOME WIDE THE SEAiS AND so W. MYBOATIS( SO SMALL CHILD CARE AAANOW! FACSIMILE TRANSMITTAL SHEET Children's Defense Fund TELEPHONE: (202) 662-3547 FAX: (202) 662-3560 TO: Nicole Rabnar, Bruce Reed, Rahm Emenuel, FIRM: Erskine Bowles, Lamy Stein CITY/STATE: FAX NUMBER: FROM: HELEN BLANK, Director, Child Care Division, Department of Programs and Policy DATE: TIME: NUMBER OF PAGES SENT (INCLUDING COVER SHEET): COMMENTS: If you have any problems receiving this fax, please contact Kanya Williams at (202) 662-3544. 25 E Street, NW Washington, DC 20001 Telephone 202 628 8787 Fax 202 662 3510 21 JUN-02-1998 11:38 FROM CDF 5TH FL.662-3550 TO 92024562878 P.02/02 The Philadelphia Unquirer Sunday, May 31. 1998 EDITORIALS Where do we stand? The talk about helping children is everywhere; the money to implement the ideas is harder to find. These days, everybody loves to helping to organize 1,000 events talk about taking a stand for chil- across the country. dren, including members of Con- In Philadelphia, contributors are gress, the President. governors and being asked by Philadelphia Citizens state lawmakers. for Children and Youth to add to the It's harder to find politicians actu- 4,500 children's books already donated ally willing to make a stand for im- to child-care centers around the re- proving the lives of children. partic- gion At the Statehouse in Trenton at ularly those of the less affluent. noon. thousands are urged to show up There have been White House in support of child-care and protection conferences devoted to the health programs. About 15,000 people are ex- and care of children. In January, the pected to rally in New York's Central President talked up the idea of in- Park, where speakers will make the vesting $22 billion in child care and case for better child care for working early childhood education over the parents and their children. next five years. It is a vital issue in 1998. He's needled Congress to do some- Olivia Golden, assistant secretary thing, held some Rose Garden for the Administration of Children events, talked to businesses. bragged and Families in the U.S. Department about his commitment and devoted a of Health and Human Services, says few minutes to kids on the radio this current federal child-care subsidies week. Yet somehow he's never seen reach only 1 million of the 10 million to it that his proposal took the form children who need help. She noted of a real bill in Congress. that millions of parents on modest Marian Wright Edelman. who incomes are struggling with inade- heads the Children's Defense Fund quate and sometimes unsafe care. (CDF), a nonprofit education and And even mediocre care can cost so policy group, notes there's no short- much it forces parents to skimp on age of child-care bills floating essentials such as heat and food. around Congress. Around 50, in fact. Ms. Golden touted the President's Many have good intentions: some child-care program. which would make for good speeches and postur- earmark $7.5 billion over five years ing, and a couple might work if only for direct subsidies through the Congress and the President would child-care and development block stand behind them. grant. In January, the President But getting elected officials in talked of getting the money from a Washington and the 50 state capitals tobacco settlement fund. to concentrate on the children who So why has Mr. Clinton been re- need the help most, the 14.5 million soundingly silent on a tobacco-bill children who live in poverty. and the amendment that would make sure many more who live close to the pov- that, over the next five years, $6 bil- erty line. remains a challenge. lion out of $62 billion in new revenue in fairness, last year Congress did goes to child care? put up $24 billion in new revenues Secretary of Health and Human over five years to expand health in- Services Donna Shalala said the Pres- surance that should cover at least ident doesn't want anything. to upset half the 10 million kids without it, the support and the focus of the to- but getting states such as Pennsylva- bacco settlement legislation. spon- nia to leverage that money for maxi- sored by Sen. John McCain (R., mum benefit has been slow going. Ariz), that is aimed at imposing ciga- So has the push to get similar-size rette taxes to discourage teen smok- commitments made to child care and ing. early-childhood education. But the child-care amendment Tomorrow, June 1, is a good day to sponsored by U.S. Sens. John Kerry ponder where we stand. (D., Mass.) and Kit Bond (R., Mo.) - Tomorrow is Stand for Children which has growing support among Day, organized by CDF. At the first moderate Republicans such as Penn- one, in 1996, children, parents and sylvania's Arien Specter and Sen. other adults stood about 300,000 McCain - nearly has enough votes strong on behalf of the nation's chil- to pass. dren near the Lincoln Memorial in And yet the nation's best-known Washington. Now there are 130 Stand child-care advocate hasn't seen this for Children chapters. which are as the right place to stand for chil- nonprofit affiliates of CDF. They are dren. TOTAL P.02 Child-Care Dilemma T HE MOST ambitious initiative in the tax-and-spend. Democrats, while not opposed, budget President Clinton sent to Con- were not all that enthusiastic. The president gress in February disappeared from legis- likewise backed away after the defeat of the lative view so quickly that most people don't tobacco tax increase on which he had counted even remember that it was proposed. The to finance the program. By the budget battle at president requested a major increase in federal the end of the session, he was pushing other child care subsidies, some $20 billion worth over priorities, notably education spending. five years. It's a good idea, but the level of The budget next year will be even tighter, interest in Congress was such that even oppo- particularly if Mr. Clinton supports the increase nents scarcely bothered to react, and the presi- in the defense budget he has suggested he will. dent himself pretty quickly abandoned the idea, The president again could seek an increase in save as a backdrop for occasional political the tobacco tax, but that too has become a more events. In the end, instead of an expansion of complicated proposition. If the federal tobacco existing programs, the administration counte- tax goes up, and the states receive some of the nanced a sizable cut in a source of child care money, the payments the states receive from money to finance other undertakings. the tobacco companies under their recently The question is whether the president will settled lawsuit will go down by the same renew the February proposal in the next Con- gress or move on. He said in February he was amount; so reads an obscure provision of the "determined" to expand existing aid. But other settlement that the industry insisted was neces- issues are competing for his attention-Social sary to keep the states from double-dipping. Security reform, to cite one modest example- As for the Republicans, the alternative devel- and next year's budget may be even less oped by the small group in the Senate this year hospitable to a major spending increase than would have guaranteed the increased aid the this one was. The Republicans who were the president proposed for the middle class while main source of this year's opposition could leaving the poor to fight for theirs a year at a present a problem as well, in that they may be time within the appropriations process-and prepared to do more next time than just say no. even the increase for the middle class would In both houses they have shown interest in have been attenuated. Lest they be accused of taking the child-care programs in directions the favoring working mothers over those who stay administration does not want to go. The at home, the group would have given the tax president's commendable determination, if it credit to both. What began as a child care still exists, could be put to an interesting test. proposal was converted for ideological reasons This year's proposal had two main parts-an into a generalized tax cut. In the House, increase in the child-care tax credit for the meanwhile, rather than increase child-care middle class, and a comparable increase in a funds, Republicans are considering giving states program of child-care grants to the states that greater freedom to use existing welfare and mainly benefit the poor. The proposal met with social service funds for child care-or not. It little interest. A small group of Senate Republi- would be up to them. Those are among the cans tried to fashion an alternative, but most deflections the president will have to deal with if Republicans were put off by the spending he renews his proposal. Last year may have been increase, which they denounced as a return to simple by comparison. The Washington Post MONDAY, NOVEMBER 3o, 1998 Carrots and Sticks T HERE IS TOUGH competition for the Hundreds more, including 81-year-old Saw Mra title, but perhaps no authoritarian re- Aung, remain in jail. Others, such as democracy gime in the world today is more brutal leader U Aung Min, have died in custody. and benighted than the military dictatorship of Now the United Nations and World Bank Burma. That Southeast Asian nation has been have floated the possibility of inducing the condemned to live in poverty and fear by the dictators to behave better by offering them thuggish, drug-tainted, corrupt generals who "carrots" such as $1 billion or more in loans if wield power. The United Nations General they enter a dialogue with Aung San Suu Kyi. Assembly recently adopted a resolution that Shunned until now by private investors and gives some sense of the scope of human rights most aid donors, the junta could use the cash abuse in Burma-including "extrajudicial and (much of which would come, through the World arbitrary executions, rape, torture, inhuman Bank, from the U.S. government). The idea, treatment, mass arrests, forced labor, forced according to an account Thursday in the relocation and denial of freedom of expression, International Herald Tribune, is to call for assembly, association and movement." "step-by-step compromises from both the gov- Burma's plight is all the more tragic because, ernment and the opposition." unlike many nations that have lived long under That description tells you the pitfalls of the dictatorship, it has a ready alternative. Aung plan. What "compromises" should be induced San Suu Kyi, daughter of Burma's hero of from an opposition that is the legitimate govern- post-colonial independence and herself a Nobel ment but has been severely repressed for most Peace laureate, heads a political party that of a decade? How freely can a leader negotiate overwhelmingly won an election in 1990. Re- when she is forcibly isolated from family and flecting just how out of touch they are with advisers, threatened with exile, vilified in the those they rule, the generals allowed the vote to official press and made to feel responsible for take place thinking that they could maintain hundreds of supporters at risk in prison? control. When Burma's voters had other ideas, Burma is the world's chief source of heroin. the generals refused to honor the results. Aung Its officials tolerate and profit from drug traf- San Suu Kyi has been under house arrest pretty ficking. A top State Department official recently much ever since. said there is no point in spending anti-drug This fall the dictatorship has turned the money in Burma. "We have not found them to screws even tighter. Since September, accord- be reliable partners," Jonathan Winer said. ing to Ambassador Betty King, the U.S. repre- The same would be true of economic aid on a sentative to the U.N. Economic and Social larger scale. Under a legitimate and democratic Council, nearly 1,000 opposition figures from government, Burma wouldn't need much World Aung San Suu Kyi's National League for De- Bank help; the country is blessed with abundant mocracy and other parties have been detained. natural resources and a literate, hard-working The junta claimed that these people were not population of 46 million. Under the current being arrested but rather invited in to chat. But rulers, any loans will further enrich the corrupt hundreds have been forced to resign from few. Long at the trough, they don't need any opposition parties as a condition for release. carrots from U.S. taxpayers. Where to Store the E-Mail W HEN E-MAIL first came along, even at the problem was a ruling that executive those too skeptical to fall for promises branch e-mails could be deleted if paper print- about the "paperless office" thought it outs had been made. It was properly rebuffed by would make record keeping easier and more the courts because so much information about compact. The National Archives, having wres- an e-mail is lost when it is printed out, including tled for years with archiving government e-mail when it was written and sent and who read it. and having been sued several times, knows The Archives' recent announcement that it better. Electronic records, says a September had endorsed a standard for electronic records letter from Archivist John W. Carlin, "pose the management arrived at by the Defense Depart- biggest challenge ever to record keeping in the ment is, therefore, a sign of modest progress. federal government and elsewhere." It's an outgrowth of an Archives decision to The challenges are technical as well as managerial and political. More and more gov- consult with departments on the problems emment departments use e-mail and electroni- raised by their systems and the kinds of records cally stored documents in their daily work, but they generate. But the strategy also involves they are on different systems. Periodic up- encouraging other departments to adopt stan- grades make matters worse, because docu- dards that have been deemed workable, the ments created or stored on one system are often better to simplify the Archives' task of develop- impossible to read or search on another. The ing some form in which all government records chaos is compounded when these records are may someday be stored and searched. transferred, as required by law, to the Archives, How the government ends up storing its which must keep "record copies" of all docu- records for posterity also will help shap:- the ments deemed significant-under laws written approach of libraries and academic institutions. when documents were created and filed on The stakes in this project are as enormous as its paper. The archivist's understandable first stab daunting complexity. The Washington Post MONDAY, NOVEMBER 30. 1998 On Sunday, however, the projected shortfall And whose word were those officials accept- number was more than quadrupled. The pro- ing, he was asked? "That's a good question," jected deficit could be lower tomorrow, when said Mr. MacLaury. But it is a terrible answer updated numbers are produced for the coun- from an official who replaced an elected school cil's education committee. What is known, board that also had failed to oversee a dysfunc- however, is that millions of dollars of unbud- tional school administration. The Senate on the Budget T HE BUDGET resolution the Senate for what would otherwise be the budget-bust- adopted last week resists the tempta- ing highway bill that Congress is passing. That tion to spend money Congress doesn't left both parties unhappy, even as they voted have. That alone makes it an unusual and solid with enthusiasm for the roads. Republicans piece of work. It doesn't spend the widely want to give a tax cut, and conservative anticipated budget surplus that doesn't yet Republican senators threatened to withhold exist. Rather, the Republicans under Budget their votes for the budget resolution until Committee Chairman Pete Domenici yielded Majority Leader Trent Lott agreed to try to to the president's injunction that the surplus, if make more room for a tax cut later in the one materializes, be used to strengthen the budget process. But the rules remain such that government's future ability to finance Social whatever cut they grant will have to be Security benefits by paying down the debt. financed, most likely by an offsetting increase. Having. yielded to the president on the What will it be? surplus, Mr. Domenici then went him one Likewise, the Democrats, led by the presi- better and insisted that any cigarette tax dent, complain that his initiatives were shut increase be used to reduce the debt as well, as out, as they were. But they too mostly voted a way of banking it against the future cost of for the highway bill, and the president didn't Medicare. Some of this was tit for tat, since the oppose it either. Even now he's reluctant to do president, while walling off the surplus, had so; he'd just like a little shaved off the top. A wanted to use the cigarette proceeds to help tax cut makes no sense just now. If anything, finance his child-care program and other as the likely future costs of Social Security and domestic initiatives. But the cigarette tax Medicare and such things as the highway bill hasn't been enacted either, and it's bad policy attest, the government already lacks the funds to spend it in advance; the politicians mort- to meet its obligations-to do what the sage themselves to the tobacco companies if country legitimately expects of it without they do so. lapsing once again into borrow-and-spend. As With the surplus and the cigarette tax both to whether highways or increased child-care declared:off limits, the Budget Committee had subsidies should come first, that's a fair trouble coming up with much free money, and enough debate to have in an election year. just about every scrap it found was set aside They just need to pay for what they choose. Wasngton Post 4/7/98 AN INITIATIVE'S FADING FORTUNES By MARK MURRAY y any standard, Jan. 7 was a lion to fund work-study scholarships for B triumphant day for Presi- college students. The recently passed dent Clinton. Before a Senate budget resolution, however, omit- standing-room-only crowd ted all of this increased education at the White House, Clin- money. ton unveiled his $21.7 bil- Also in trouble is Clinton's plan to lion initiative to improve the quality, allow early retirees-those between the affordability and accessibility of child ages of 55 and 64-to buy into Medicare. care. His package included an increase in Sen. John B. Breaux, D-La., Clinton's the Child Care Development Block choice to head a bipartisan commission Grant, an expansion of tax deductions on Medicare's future, has said it would for low- and middle-income families, tax be counterproductive for Congress to breaks for businesses with day care facili- consider Clinton's proposal at the same ties and scholarship funds for child care time the commission was trying to agree providers. on ways to keep Medicare solvent. This proposal, the President pro- When President Clinton announced claimed, was "the single largest national his child care proposal, its adoption MICHAEL KHARFEN: The commitment to child care in the history appeared likely, because he tailored it push for Clinton's child care of the United States." Throughout the with the Republican-controlled Congress plan IS "definitely not over." ceremony, the throng of child care advo- in mind. There were block grants, tax cates and Administration officials in credits for families, tax breaks for busi- attendance cheered and roared. Noth- nesses and no national standards for ing, it seemed, was going to obstruct the child care regulation-things all dear to President's plans for child care. the hearts of Republicans. (See NJ, What a difference three months make. 1/17/98, p. 126.) How could Republi- An unresponsive Congress, questions cans, the thinking went, ever reject an about tobacco money, and the dark, hov- initiative that looked like one of their ering cloud of scandal have all imperiled own? Clinton's child care package. In fact, at a But, so far, Republican members have March 31 press conference outside the hardly shown enthusiasm for the White Capitol on child care, it was obvious that House's child care plan. For one thing, the once-jubilant mood among child care they contend that the initiative largely advocates and other supporters of the favors working parents who send their President had transformed into one of kids to day care facilities, while it ignores urgency and desperation. "There must a favorite Republican constituency: stay- be child care legislation this session," said at-home moms. (See NJ, 1/24/98, b. 167.) Del. Eleanor Holmes Norton, D-D.C. Such an omission was a "miscalculation" Rep. Lois Capps, D-Calif., repeated the by the Clinton Administration, said message: "We can't fail our working par- Michael Franc, the vice president for gov- ents. The time is now." ernment relations at the conservative Child care isn't the only White House Heritage Foundation. domestic initiative in jeopardy, however. Indeed, ever since Republicans made In his fiscal 1999 budget, Clinton pro- it an issue, supporting both working and posed $22 billion in interest-free bond- stay-at-home parents scems to be a bipar- ing authority to build and improve tisan goal. A resolution by Rep. William school facilities, $1.1 billion to reduce F. Goodling, R-Pa., which stressed that classroom size and an additional $70 mil- any child care initiative must consider 12 NATIONAL JOURNAL 4/11/98 parents who remain at home to care the child care agenda, either. It has been said Faith Wohl, the president of Child their children, passed the House, 409- difficult for the Administration to rally the Care Action Campaign. In addition. the on Feb. 11. public behind the child care proposal and bipartisan Congressional Caucus for In addition. Republicans such as Sen. launch a counteroffensive against its crit- Women's Issues sent a March 31 letter to arry E. Craig. R-Idaho, say that the pack- ics-especially with Clinton ducking the Speaker Newt Gingrich, R-Ga., urging pas- :e gives government 100 big a role in media and with key aides devoting their sage of child care legislation. ild care. The country is saying, Craig time to scandal control. For Sen. Craig. "We must listen to the concerns of gues, that "we don't need the federal the investigations into the President's SCX America's working families and help them overnment being namies." The Admin- life, alleged obstruction of justice and meet their child care needs," the letter ration insists, however, that the Presi- alleged perjury have rendered Clinton stated, affirming commitments to better ent's proposal-because it expands exist- "but an echo on this issue right now." quality. increased financial assistance for g tax credits and block grants-is far But perhaps more important than any- low-income families, and lower taxes for om the creation of a federal program. thing else, passage of the President's child both working families and stay-at-home Ve're not talking about another huge care package was always unrealistic, say spouses. deral bureaucracy," said Michael Khar- 11, spokesman at the Health and Human ervices Department's Administration for hildren and Families. The Senate budget resolution that assed along partisan lines, in fact, re- ects the Republicans' discontent with e child care proposal. Unlike the White ouse initiative, which sets aside $7.5 bil- on over the next five years in mandatory ands to increase the block grant, the enate budget blueprint has just $5 bil- on in discretionary spending. And efore that amount can even be used, the enate Budget Committee's Democratic aff points out, the Appropriations Com- ittee will have to make offsetting reduc- ons in other discretionary programs, ich as those that support education and re environment. The Senate budget resolution includes 0 to $9 billion in tax breaks for all fami- es to use for child care expenses. But ecause this tax cut is nonrefundable, gue Democrats, it would hardly help the HELP FROM HILLARY: Despite The Administration isn't giving up. 'W- and middle-income families Clinton's the First Lady's public support, the either. Ever since Judge Susan Webber roposal intends to benefit. child care initiative has faltered. Wright dismissed Paula Jones's lawsuit Helping to sidetrack the child care ini- against Clinton on April 1, a reinvigorat- ative has been tobacco. The White some child care advocates and policy ed President has been battling to keep ouse suggested funding one-third of its experts. According to Ellen Galinsky, pres- child care and the rest of his domestic 21.7 billion package from last year's ident of the Families and Work Institute, agenda alive. For example, he recently 368.5 billion proposed tobacco settle- the child care issue has never been popu- attacked the Senate budget resolution. ent, mainly as a way of increasing spend- lar with Congress. "There was a sense of arguing it "will squeeze out critical invest- ig on domestic priorities without endan- surprise in January," she said, but "now it ments in education and children." He ering last vear's balanced budget is back to debate as usual." also spent this week on the bully pulpit greement. But Congress is moving in And Stephen Hess, a senior fellow at renterating his commitments to increased nother direction. The Senate budget res- the Brookings Institution, explains that education funding. a tobacco settlement lution earmarked any tobacco settlement the prospects for Clinton's domestic agen- and preserving Social Security. roceeds that go to the federal govern- da seemed promising at first only because "It's definitely not over." said Kharfen. nent for Medicare, and House Budget Congress wasn't in session and wasn't able "The past few years have certainly shown ommittee chairman John R. Kasich. R- to immediately pounce on his policies. that you can never completely predict Phio, says he wants to set aside those pro- "What happened was a very shrewd build- what is going to happen in the budget eeds for tax cuts. There's even the up to the State of the Union. [Clinton] process." hance that there won't be any tobacco was having a proposal a day with a lot of But with just a few dozen more sched- noney-at least not anytime soon. hoopla." In reality, he said, "there was uled working days in Congress and with .lthough Sen. John McCain, R-Ariz., has more hype than it was really worth." members eyeing the November elections. rawn up a $506 billion tobacco bill. Sen- Despite the gloomy ouflook, child care time seems to be running out on Clin- 10 Majority Leader Trent Lou. R-Miss., advocates are blowing the battle horn to ton's child care proposal. "Obviously, he's as indicated that it may not come to a do their part to get meaningful child care going to start to see if he can regain the ote this year. funding passed. "Women's voices have 10 momentum." said Brookings's Hess. "The And. of course, the world's introduc- be heard, and those voices have 10 be question is time: Can he do 11 at this stage ion to Monica Lewinsky hasn't helped angry and compelling and demanding," of the congressional cycle?" Monday, March 16, 19 OTHER OPINION More Mary Poppins-Type Nannies Are N children in out-of-home care is rising. MICHAEL D. KAPLAN The future leaders of our country will most likely spend a majority of their early For too long, the debate has centered n "Mary Poppins," Mr. Banks, upset years in nonparental care. How is the care I over his children's naughty behavior, that these children receive? on whether day care is good or bad advertises for a "nanny who can give Research on day care in this country for children. Mr. Banks asserts that the commands." His requirements for a has produced a shocking report card. The "firm general" differ from his children's quality of care in the majority of centers future lies in the hands of a nanny. Now yearnings for a sensitive, loving and play- and family day care is poor to mediocre. ful person to care for themrwhile their par- Our youngest children are more likely there is scientific credence to his claim. ents go to work. The Banks hire a high- than not to receive substandard care. In- quality nanny, and the results speak for fant/toddler care often does not meet min- themselves. The Banks children thrive as imal standards for health, safety, nurtu- push for flexibility and accessibility but do they are changed by the experience. rance and stimulation. Children, left in the not have the tools necessary to evaluate Newly released research from the Fam- care of others, are at risk. These findings quality. Second, as long as the debate cen- ilies and Work Institute provides scientif- hold for private, nonprofit and public-sec- ters on the very existence of day care ic evidence to support this "Mary Pop- tor care. Despite these findings, parents rather than the quality of day care, money pins" factor. That is, children who are overrate the quality of care that their chil- directed at raising standards of care re- cared for by well-trained, sensitive care- dren are receiving. mains at the bottom of funding priorities. givers, with favorable adult-child ratios, On the other hand, centers and family The debate is over. Recent federal re- are in better shape than their peers. They day-care programs rated high in quality search has shown that children who re- 203 737 score higher on intelligence tests, are lead to positive and lasting changes in SO- ceive high-quality day care are no different more attached to caregivers and have cial, emotional and cognitive development. from children raised at home. The chal- fewer emotional and behavioral problems. Quality obviously costs more, but not a lot lenge to our country is not whether we The institute's landmark project, the more. In the Florida study, strengthened should have day care for our youngest citi- Florida Child Care Quality Improvement regulations had almost no impact on con- zens or whether the federal government Study, continues to define what is needed sumer costs. We know the ingredients that should be in the business of day care, but for children in day-care settings. lead to high quality: better staff-to-child ra- how well we can do it. In his recently submitted budget, Presi- tios, staff education, specialized training Mr. Banks asserts that the future lies dent Clinton called for a bold new initia- and improved teacher wages.. in the hands of a nanny. The Families and tive in the financing of day care. This call For too long, the debate has centered on Work Institute research provides scientif- comes at a crucial moment. The day-care whether day care is good or bad for chil- ic credence to his claim. The proposed bill movement has grown exponentially in the dren. When we debate the merit of day is a step in the right direction. last decade. Two-thirds of children under 5 care, two things happen. First, parents be- are in some form of child care. Nearly one- come anxious about the choices they are Michael D. Kaplan, M.D., is an assistant half of all children under 1 are in child making and do not advocate for changes in professor of child psychiatry at Yale care on a regular basis. And the number of the system. Parents, as the consumers, University's Child Study Center. R whether government can do something get. In other words, every year Congress to make that happen. If conservatives would have to sit down and hash out TRB were really interested in expanding the funding levels all over again. Given the Clinton plan and making it a universal general reluctance of a Republican-con- child care program that offered financial trolled Congress to shift vast amounts of assistance to all needy parents of young money from, say, corporate welfare to children-doing, in essence, what some child care, it seems unlikely that all or European nations have done for years- even most of the subsidies in Chafee's their effort would not only be credible. It bill would ever materialize. (Indeed, if all would be laudable. the Republicans really wanted was to uni- Trouble is, providing such universal versalize child care, they'd endorse an FROM WASHINGTON assistance gets very expensive, and-sur- even more ambitious plan from Dodd. prise!-the conservatives don't really His preserves the essentials of the presi- want to spend the money. To finance the dent's plan but also extends modest tax kind of tax relief Republicans are talking relief to at-home parents. Of course, it Who cares? about-without sacrificing elements of costs $30 billion.) the Clinton plan that would improve day As part of their child care push, Re- care quality-it would cost well in excess publicans have also been promoting re- Despite its hefty $21.7 billion price tag, of Clinton's $22 billion over five years, form of laws governing flexible work President Clinton's ambitious child care which the Republicans have al- hours. This is a sensible impulse, proposal seemed incontestable when he ready said is more than they helping many middle-income introduced it last month. Here, after all, can stomach. (The Chafee parents rearrange their sched- was a plan that sought to help both the plan, by contrast, costs just ules to accommodate chil- working poor, by giving them child care $11 billion.) And if the idea dren. But most such propo- subsidies, and the middle class, by offer- is to help low-income fami- sals also make it easier for ing them tax breaks on child care ex- lies as well, the tax credit companies to avoid paying penses. Surely Republicans would not would have to be refund- overtime. This tends to dare oppose an idea geared toward chil- able-meaning you could hurt-you guessed it-low- dren and one that so strongly appealed collect the money as a subsidy income Americans, who fre- to women during an election year. if you were too poor to pay taxes quently rely on overtime pay But the right soon found a way out of in the first place. But Republicans simply to make rent and buy food. Clinton's clever trap. The Clinton plan say they're not interested in refundable It's possible to imagine a grand com- offers no benefits to parents who stay credits, either, because of the cost. In promise-a bargain that would spread home with their kids rather than work; short, conservatives want it both ways. equal benefits to parents who work and conservatives seized on this, and cited They don't wish to penalize at-home parents who don't, one that would help it as proof that the president's plan was mothers, but they're also unwilling to families at all income levels and one that antifamily. "Some fundamental questions spend what it would take to give substan- would do it all for a reasonable price. But need to be asked about the importance tial child care assistance to everyone who when you divide the money among that of the mother-child attachment, particu- needs it. How fair is that? many people, you have to wonder, just larly in the very early months and years," Of course, conservatives who oppose how much good is it doing? The fact is, a Senator Daniel Coats, a Republican from the Clinton plan deny any such ploys. "I few extra hundred dollars given out to Indiana, told The Washington Post. "Do we understand there are budgetary con- every parent is unlikely to enable many want to encourage the kind of child care straints, but why don't we look at spend- people to give up their jobs altogether. the president is encouraging?" Soon, a ing a similar amount of dollars and ben- But if we target the assistance to parents group of moderate Senate Republicans efiting everybody?" asks a reasonable- who are working-parents who, in most led by Rhode Island's John Chafee intro- sounding Amy Myers of the Family Re- cases, don't have much choice-each par- duced an alternative that-unlike the search Council. It's a fair question, but ent might receive enough money to offset president's proposal-promised tax ben- it's one conservatives might want to ask the cost of child care enough to work efits for all families, even when one par- Republican lawmakers first. After all, the fewer hours (and spend more time with ent stays home. Chafee plan doesn't benefit "everybody" their kids). As for those who couldn't What rich irony. Not so long ago, con- any more than the president's. In fact, reduce their hours, they might at least servatives were braying about how we it conspicuously skimps on benefits for afford better care. "I don't want to turn need to force lazy stay-at-home welfare the one group-the working poor-who this into a mommy war between those mothers to get jobs. What's more, not one arguably need it most. who want to stay at home and those who Republican senator has endorsed a pro- Here's why. Although Chafee magnan- don't have a choice," says Dodd. "If you're posal by Connecticut Democrat Christo- imously proposes an increase in the child fortunate enough that you can make that pher Dodd to extend the Family and care block grant, which directly subsi- choice, you shouldn't be trying to deprive Medical Leave Act to companies with at dizes child care for the poor (who, again, someone who has no such choice." least 25 employees. Apparently, it's impor- don't benefit from nonrefundable tax This is, of course, a politically haz- tant to make sure parents stay home for credits), his increase is less generous ardous argument to make: The role of three years but not for twelve weeks. than Clinton's-$5 billion instead of women in the workplace is an issue about Yet putting such contradictions aside, $7.5 billion. More importantly, the in- which Americans still feel profoundly there's a strong element of truth in what crease comes solely from discretionary ambivalent. But, as conservatives are so the conservatives are saying. For too long, funds. Unlike mandatory spending, fond of arguing, when it comes to chil- the contentious debate over whether which Clinton uses in his plan and essen- dren, good policy should always trump working mothers are bad mothers has tially turns a program into an entitle- good politics. And all things considered, overshadowed the equally important ment, discretionary money must be ap- Clinton's plan is pretty good policy. question of whether children need more proved during the appropriations pro- ttention from mothers and fathers, and cess, even after it's authorized in the bud- JONATHAN COHN NEW REPUBLIC FEBRUARY 23, 1998 Administration THE DIVIDE OVER DAY CARE BY BEN WILDAVSKY iven the continuing ambiv- "And I think the debate will be fought on G alence that Americans feel that ground." She cites a December NBC about the large-scale entry News/Wall Street Journal poll in which 42 RICHARD A. BLOOM of women into the work- per cent of adults called the trend of more force, it's no surprise that mothers working outside the home "a step President Clinton kicked in the wrong direction," compared with 31 off considerable debate this month when per cent who called it "a step in the right he unveiled a $21.7 billion day care pro- direction" and 20 per cent who said it posal that he termed "the single largest made no difference. national commitment to child care in the There is no question that the entry of history of the United States." large numbers of mothers into the U.S. Social conservatives are portraying Clin- labor force is a sociological sea change ton's child care plan as the latest strike by that's all the more remarkable for the big-government forces in America's cul- speed with which it has taken place. A cou- ture wars. Republicans, joined by some ple of years after World War II, 27 per cent centrist Democrats, complain that the of women with children between the ages Administration is favoring working moth- of 6 and 17 were in the workforce-which ers over their stay-at-home counterparts by the Bureau of Labor Statistics (BLS) proposing tax relief for parents who use defines as working or looking for work. BRUCE REED: "We're the first paid day care. Seizing on an economic-pol- Fifty years later, that figure had risen to 78 to admit we can't solve every icy truism, they note that if you subsidize per cent. Women with children under 6, problem at once." something, you are likely to get more of it. the main users of child care, have always White House officials counter that the worked less than women with older chil- President has already signed plenty of leg- dren, but their labor force participation islation that helps all families, from the has seen an even more dramatic Family and Medical Leave Act to the $500- increase-from 12 per cent in 1947 to 65 per-child tax credit in last year's budget per cent in 1997. deal. Not every initiative, they say, can be But social conservatives argue that the all things to all people. "We're the first to reality of women's labor force participa- admit that we can't solve every problem at tion is more complex than advocates of once," said Bruce Reed, the President's day care funding realize. "There are a lot domestic policy adviser, in an interview. of shades of gray out there," said William "Our child care initiative is meant to help Mattox, a senior policy analyst at the Fami- parents deal with the reality that most of ly Research Council. "It's a big mistake for them either have to-or have chosen to- people to look at this as a black-and-white work." When the President signed last thing" in which a monolithic bloc of work- year's child credit into law, Reed noted, ing mothers far outnumbers the bloc of "nobody said that we were going to nonworking mothers. have more children as a result." For one thing, a substantial portion of Still, there's evidence that Americans, employed mothers of preschoolers work both men and women, are troubled about part-time-about three in 10. And many the growing number of mothers in the mothers of young children don't work labor force. "People have reservations outside the home at all. Among Ameri- about more mothers with young children can women with children under 6, working," said public opinion analyst Kar- according to March 1997 BLS data, 35 lyn H. Bowman of the American Enter- per cent didn't work, 5 per cent were prise Institute for Public Policy Research. unemployed, slightly more than 18 per 1/24/98 NATIONAL JOURNAL 167 cent worked part-time, and almost 42 per standards that have spelled death for previ- the results uncertain. "We couldn't figure cent worked full-time. ous child care proposals (see NJ, 1/17/98, p. out a way, other than what we've already Another way of slicing the data is to look 126). And its central features-expanded done, to create enough of a financial incen- at the proportion of children in day care block grants to states to subsidize child care tive," First Lady Hillary Rodham Clinton rather than the percentage of mothers who for low-income families, increased tax cred- told Newsweek recently. "It takes a lot of work. A Census Bureau report released on its to help low- and middle-income families money to offer $250 a year, which is not Jan. 14 found that in the fall of 1994 about pay for child care, and a new tax credit for going to change behavior." half of the 10.3 million preschoolers whose businesses that provide child care for Still, it's clear the Administration is pre- mothers worked were cared for by family employees-combine federalism and tar- pared to negotiate. "We are genuinely open members. The other half were cared for geted tax cuts, two favorite Republican poli- to any affordable suggestion," Reed said. either by nonrelatives or in organized day cy approaches. "Most of the suggestions that have been put care facilities. There were about 20 million Indeed, some Republicans are warning forward are big across-the-board tax cuts children under 5 in the United States at one another not to be drawn into what they that would spend money we don't have. But that time. believe is an Administration trap designed if there's a way to provide targeted help, Overall, then, almost half of all to provoke them into obstructing popular we're certainly open to it." preschoolers had nonworking mothers and initiatives. "There are a significant number Conservatives say they believe the child another quarter were cared for by family of working women with children who also care debate kicked off by the President's members, an arrangement that in most are part of the Republican coalition, and a new proposal could prove to be a replay of cases is unpaid. So only about 25-30 per part of the critical swing group necessary to the one that took place in the late 1980s. cent of the preschool population would be win elections," said GOP pollster Linda A. Then, Democrats' and Republicans' differ- eligible for the child care tax credits pro- DiVall. "Republican leaders need to be very ing views on child care policy resulted in a posed by the Administration. "The funda- careful that by their message they don't compromise: a 1990 law that created two mental mistake that [Clinton] has made is appear only to be talking to nonworking state child care block grant programs, along in denying any sort of assistance to families women or suburban housewives. Young work- with an expansion of the earned-income tax that care for their own children, because ing women do have a desire for day care." credit for low-income working families. that will violate a fundamental sense of fair- So far, Republicans and centrist Demo- William A. Galston, a former Clinton ness," Mattox said. crats are pushing a variety of alternatives to Administration domestic policy adviser Democratic pollsters are confident that the Clinton plan that they say have the who's now the director of the Institute for the Administration's child care plan will go virtue of helping all families with young Philosophy and Public Policy at the Univer- down well with the public. Even though a sub- children, whether or not they use paid day sity of Maryland (College Park), agreed that stantial number of women stay home when care. These include increasing the $500- Republicans may succeed in adding some their children are young, many later return per-child tax credit passed in last year's bal- general tax relief for families with young to the workforce, noted Jennifer A. Sosin of anced budget bill and making it easier for children to whatever child care legislation the Democratic polling firm Lake, Sosin, workers to take compensatory time off in emerges this year. "I can see the making of Snell, Perry and Associates. "Most families lieu of paid overtime. a grand bargain here, where both parties with children at some point are going to White House officials say they'd like to manage to agree with the American people have to deal with child care issues," she said. find ways to help stay-at-home parents, but that families with dependent children are Clinton's plan avoids the kind of national they note that the costs would be high and hard-pressed," he said. WORK WD ( HILD ARE MOTHER WORKFORCE PRES CHOOLERS WITH WORKING MOTHERS 80% of There entage al-mothers who Pacilities 70 (amatically 60 50 With children Family 40 under 18 members 49% 30 Organized facilities 20 29% With children 10 under 6 0 Source of care of preschoolers with employed mothers 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 168 NATIONAL JOURNAL 1/24/98 Robin J. Bachman 02/09/98 11:55:13 AM Record Type: Record To: Neera Tanden/WHO/EOP, Jennifer L. Klein/OPD/EOP, Nicole R. Rabner/WHO/EOP CC: Subject: Don't know if you saw this On Wednesday the House will consider (under a suspension of the rules), Voter Eligibility Verification (H.R.1428), Daycare Fairness for Stay-At-Home Parents (H.Con.Res. 202), and National Sea Grant College Program Reauthorization Act of 1997 (S. 927). The House will also consider a Resolution Regarding the Contested Election in the 46th Congressional District of California. Bill Tracking Report HCR 202 1998 Bill Tracking H. Con. Res. 202; 105 Bill Tracking H. Con. Res. 202 EQUITABLE CHILD CARE RESOLUTION EQUITABLE CHILD CARE RESOLUTION DATE-INTRO: January 27, 1998 LAST-ACTION-DATE January 27, 1998 STATUS: Pending SPONSOR: Representative William F. Goodling R-PA TOTAL-COSPONSORS: 15 Cosponsors: 0 Democrats / 15 Republicans SYNOPSIS: A concurrent resolution expressing the sense of the Congress that the Federal Government should acknowledge the importance of at-home parents and should not discriminate against families who forego a second income in order for a mother or father to be at home with their children. ACTIONS: Committee Referrals: 01/27/98 House Education and the Workforce Committee Legislative Chronology: 1st Session Activity: 2nd Session Activity: 01/27/98 144 Cong Rec E 3 Remarks by Rep. Goodling 01/27/98 144 Cong Rec H 63 Referred to the House Education and the Workforce Committee BILL-DIGEST: (from the CONGRESSIONAL RESEARCH SERVICE) CRS Index Terms: Children Budgets Caregivers Child care block grants Day care Families Parent and child State and local government CO-SPONSORS: Original Cosponsors: Blunt R-MO Bunning R-KY Cook R-UT Gallegly R-CA Greenwood R-PA Hefley R-CO Johnson R-CT Largent R-OK Pitts R-PA Shuster R-PA Snowbarger R-KS Wolf R-VA Added 01/28/98: Aderholt R-AL McKeon R-CA Riggs R-CA LEVEL 1 - 2 OF 2 REFERENCES FULL TEXT OF BILLS 105TH CONGRESS; 2ND SESSION IN THE HOUSE OF REPRESENTATIVES AS INTRODUCED IN THE HOUSE H. CON. RES. 202 1998 H. Con. Res. 202; 105 H. Con. Res. 202 <=1> Retrieve Bill Tracking Report SYNOPSIS: Expressing the sense of the Congress that the Federal Government should acknowledge the importance of at-home parents and should not discriminate against families who forego a second income in order for a mother or father to be at home with their children. DATE OF INTRODUCTION: JANUARY 27, 1998 DATE OF VERSION: JANUARY 28, 1998 -- VERSION: 1 H. CON. RES. 202 JANUARY 28, 1998 -- VERSION: 1 SPONSOR(S): Mr. GOODLING (for himself, Mrs. JOHNSON of Connecticut, Mr. GREENWOOD, Mr. COOK, Mr. BLUNT, Mr. WOLF, Mr. HEFLEY, Mr. GALLEGLY, Mr. PITTS, Mr. SNOWBARGER, Mr. SHUSTER, Mr. LARGENT, and Mr. BUNNING) submitted the following concurrent resolution; which was referred to the Committee on Education and the Workforce TEXT: Whereas studies have found that quality child care, particularly for infants and young children, requires a sensitive, interactive, loving, and consistent caregiver; Whereas most parents meet and exceed the aforementioned criteria, circumstances allowing, parental care marks the best form of child care; Whereas the recent National Institute for Child Health and Development study found that the greatest factor in the development of a young child is "what is happening at home and in families"; Whereas a child's interaction with his or her parents has the most significant impact on their development, any Federal child care policy should enable and encourage parents to spend more time with their children; Whereas 48 percent of mothers with preschool children under the age of 5 H. CON. RES. 202 JANUARY 28, 1998 -- VERSION: 1 are full-time at-home parents and another 34 percent of mothers work part-time in order to spend more time with their preschool children; Whereas a large number of low- and middle-income families sacrifice a second full-time income so that the mother may be at home with her child; Whereas the average income of 2-parent families with a single income is $20,000 less than the average income of 2-parent families with two incomes; Whereas only 30 percent of preschool children are in paid child care and the remaining 70 percent of preschool children are in families that do not pay for child care, many of which are low- to middle-income families struggling to provide child care at home; Whereas child care proposals should not provide financial assistance solely to the 30 percent of families that pay for child care and should not discriminate against families in which children are cared for by an at-home parent; and Whereas any congressional proposal that increases child care funding should provide financial relief to families that sacrifice an entire income in order that a mother or father may be at home for their young child: Now, therefore, be it * Resolved by the House of Representatives (the Senate concurring), *That the Congress recognizes that- H. CON. RES. 202 JANUARY 28, 1998 -- VERSION: 1 (1) many American families make enormous sacrifices to forego a second income in order to have a parent care for their child at home; (2) there should be no bias toward at-home parents; (3) child care assistance, when provided to families, should be provided regardless of whether a child is cared for by an at-home parent, family member, neighbor, or child care center; (4) a key component to any quality child care proposal should include financial relief for those families where there is an at-home parent; and (5) mothers and fathers who have chosen and continue to choose to be at home should be applauded for their efforts. TANDEN N @ A1 02/05/98 07:21:00 PM Record Type: Record To: Jennifer L. Klein, Nicole R. Rabner, Neera Tanden CC: Subject: DODD, IN AN ELECTION YEAR, FACES OBSTACLES TO FAMILY LEAVE Date: 02/05/98 Time: 17:51 FDodd, in an election year, faces obstacles to family leave WASHINGTON (AP) On the fifth anniversary of the Family and Medical Leave Act, its chief author said more workers should be covered by the law's guarantee of unpaid time off to care for a new child or sick relative. This is a very popular idea," Sen. Christopher Dodd, D-Conn., said Thursday. He wants to expand the law to bring in businesses with at least 25 employees, down from the current threshold of 50. That would cover another 13 million workers. But Dodd acknowledged that convincing his colleagues would be tough. It took years to muster enough votes in Congress to pass the original law. It was vetoed twice by then-President George Bush, a Republican, before President Clinton signed it in a Rose Garden ceremony just two weeks after taking office. Today, some of the bill's original opponents are still in Congress, including the Senate Republican leader, Trent Lott of Mississippi. And there is opposition from business. John Satagaj, president of the Small Business Legislative Council, said it would be difficult for many small companies to meet the law's requirements. Requests for unusual benefits, such as lengthy time-off, are usually handled on a case-by-case basis, he said. We're not convinced that the problem is widespread," he said. Employees may find out that their employer is less flexible than they were before this law was imposed." The family leave law allows workers up to 12 weeks unpaid leave after the birth or adoption of a child, or to care for their own or a family member's serious illness. About 12 million workers took advantage of benefits offered by the law from January 1994 through June 1995, according to a commission created by Congress. Dodd is aiming to expand the law as part of a larger initiative on child care, a White House priority. More than 40 child care bills have been introduced by Republicans and Democrats in recent months. To mark the fifth anniversary of family leave, Dodd held a news conference with officials of the Adams National Bank, a Washington bank that started its own leave policy in 1977 as a small business. It now has more than 50 workers. Small businesses should not fear this," Barbara Blum, the bank's president, said. ``It brings into the workforce people who stay with you." APNP-02-05-98 1801EST BREAD CIRCUSES ing child-care workers, and providing referral services-amenities generally feasible only for large corporations. To the extent that this makes big firms more attractive to workers, it could lure them away from small firms in a tight Yuppie Care labor market. Supporters of the Clintons' day-care scheme say all the spending is necessary because the 1996 welfare reform is D URING a radio debate last oring for better day care-hence Mrs. pushing welfare mothers into the work- week, Rep. Ellen Tauscher (D., Clinton's reference to a "silent crisis." force. But the welfare-reform bill in- Calif.) told me that she enthu- Polls show that what working moth- cluded $22 billion in child-care funding, siastically supports Bill and Hillary Clin- ers do want is to work fewer hours in and last year's balanced-budget deal ton's $22-billion federal day-care initia- order to spend more time with their provided the states with another $3 bil- tive because she had a premature baby a children. But the Clintons' initiative has lion. This is in addition to the large sur- few years ago and had some trouble nothing to do with what's good for chil- pluses states are enjoying as a result of finding a babysitter. Mrs. Tauscher was dren or appealing to parents. They real- declining welfare rolls. elected to Congress in 1996, spending ly believe that "it takes a village to raise Meanwhile, the biggest problem fac- $1.7 million of her own money to de- a child"-but a village not of ing families with young children is that feat an incumbent Republican. friends and relatives, but of ex- government takes about 40 per cent of With a fraction of her personal perts. Hence, the most di- their paycheck. They can't expect any war chest, she could have hired rect benefits in the Clinton meaningful relief so long as they are a neo-natal team from San proposal go to the caught up in Washington's perpetual Francisco General to care day-care lobby, the spending cycle: family budgets are for her child. But she be- National Education stretched thinner and thinner as taxes lieves that her tale bolsters Association, big busi- inch up; Congress responds by helping her case. In the brief time ness, and career women. with housing, health care, or education she has spent in Washing- And President Clinton is costs; and taxes inch up some more to ton so far, Rep. Tauscher willing to spend liberally-in pay for it. has learned how policy is really both senses of the word-on all Because the Clinton plan responds to made. Despite stacks of studies and these constituencies. The new spending a manufactured need it is more vulnera- discs of data, legislation typically amounts over five years would include: a $7.5- ble than many Republicans think. None- to government by anecdote. billion increase for the child-care block theless, some of them are already pro- The coming day-care debate is partic- grant, a $5.2-billion addition to the viding cover for the Administration. ularly liable to the personal-ordeal para- dependent-care tax credit, $500 million digm. Washington, D.C., has the coun- in tax credits for employers, $800 mil- R EP. Constance Morella (R., try's highest percentage of families with lion for after-school programs, $6.8 bil- Md.) attended the White both parents working. Their experience lion for new and old early-childhood- House conference at which the tells them that parents with young chil- education programs, and $850 million day-care proposals were unveiled. Rep. dren either want to pursue their careers to professionalize day-care workers. We Deborah Pryce (R., Ohio), meanwhile, at all costs, or must work to keep the can only imagine the kind of spending a hit a cautious note in responding to Mr. wolf from the door (actually, to keep noisy crisis would entail. Clinton on behalf of the GOP leader- the BMW in the drive). While there is The majority of families with children ship. She explained that she was pleased no evidence of a national problem cry- will not get a dime of these funds-be- that the President had resisted "the urge ing out for a federal solution, lawmakers cause they don't use professional day to have the Federal Government control and their aides will generalize from their care. Instead, because of the tax credit, child care." This is the kind of opposi- own situations to justify legislation. less affluent one-earner families (median tion the White House must love. Life outside the Beltway is, as- in income: $39,000) will be subsidizing Sen. Larry Craig (R., Idaho) offers other matters, quite different. Nation- the day-care costs for generally more af- much sharper criticism on behalf of his wide, more than three-quarters of pre- fluent (median income: $58,000) two- Senate Republican Policy Committee. school-aged children have mothers who earner couples. Sen. Craig opposes the plan as an un- do not work outside the home, or who When challenged about the White warranted federal intrusion that dis- do so only part-time. Relatives take care House's failure to provide assistance to criminates against the great majority of of roughly half of children whose moth- mothers who stay at home, Bruce Reed, parents in favor of institutional pro- ers are employed outside the home. the President's domestic-policy advisor, viders. Republicans would do well to Controlling for inflation, the cost of day responded defensively: The President pick up this line, and to use an anecdote care hasn't increased over the past twen- would like to help parents at home but of their own: Danielle Crittenden re- ty years despite increased demand (which he lacks the money to do so. Reed sure- ports that many humane societies will has leveled off in recent years), and ly would say that the President would not permit a couple to adopt a dog or working parents report that they are sat- like to help small businesses as well. But cat if they both work full-time. If only isfied with the day care their children the proposed new business tax credits Washington had similar solicitude for receive. Working parents are not clam- are for setting up on-site facilities, train- America's children. -KATE O'BEIRNE FEBRUARY 9, 1998 / NATIONAL REVIEW 21 COMMENTARY By Keith H. Hammonds CLINTON'S CHILD-CARE CONFERENCE: JUST CHATTER? n March, acting on a tip, county in- Pick an issue beyond reproach, re- child-care and early-education funding spectors visited the Milwaukee babble the obvious, and hope people to $255 million, from $37 million four home of Dana Jones. As an un- forget about campaign finance for a years ago. Indiana has brought togeth- licensed child-care provider, Jones while. Hard choices or financial com- er county-based teams of businesses, was allowed by state law to look af- mitments? Not likely. educators, providers, and community ter three kids under age 7. Yet the There are two straightforward groups to fund provider training. inspectors that day found at least 34 ways to fix the child-care mess, and But such programs, though grow- children, some playing outside, some both require a lot of money. We can ing, don't nearly meet the need. in sleeping bags, and four babies un- reduce demand, limiting the damage Some 20 states, for example, allow supervised. One child was lying be- that reckless caregivers cause to infant-to-caregiver ratios above the neath a sink, apparently for punish- kids. Or we can expand and improve 4-to-1 recommended by the National ment. Remarkably, though, Jones's supply-putting 10 more child-care Association for the Education of operation, first exposed in the Mil- workers on Jones's block, training Young Children, an accrediting waukee Journal Sen- group; Wisconsin, in tinel, wasn't shut fact, recently loosened down. In fact, she re- its standard. Lower- gained county certifica- ing the ratios would tion within four raise costs, as would months. mandating teacher So it goes in the un- training beyond the 8 derfunded, barely regu- to 15 hours common lated system that looks in many centers. after 12 million chil- FIXING IT. Researchers dren under age 6. By estimate that meeting some accounts, a ma- the Association's stan- jority of American kids dards would cost up in day care spend hours to $8,500 annually per in settings that lack child. Currently par- appropriate educational ents pay an average stimulation, safety, and of $3,700 per child; security. This when re- through subsidies, tax cent studies indicate in- credits, and the like, tellectual and emotional government chips in capacities are shaped BUILDING THE FUTURE them thoroughly, paying $1,000 on average. The funding most in the first three them better, and holding gap-and overall need for day care- years of life. "People It'll take more than them to strict child-to-care- both likely will grow in the next five basically are ignoring talk. The national giver ratios. years as low-income mothers move kids," says Anne Arne- bill for more Of the two, cutting de- off the welfare rolls. In all, the tab son, director of the mand is the more political- to right child care easily could top Wisconsin Council on caregivers, better ly tenuous. Heritage Foun- $10 billion a year. Children & Families. training, and dation analyst Patrick To be fair, the Administration has SUPPLY SIDE. What to higher pay could Fagan advocates extending some ideas about increasing federal do in the face of such subsidies and tax credits to subsidies to parents and businesses need? If you're in the top $10 billion yearly families when a parent as well as creating scholarships for White House, you host chooses to look after kids child-care researchers. "It doesn't a conference. On Oct. 23, Bill and at home. "It's bad policy to tilt take much to improve quality, and Hillary Rodham Clinton were set to things toward child care only for we don't need to invent a new sys- host 130 legislators, care providers, working mothers," he says. Such a tem," Hillary Clinton told reporters and child-development experts, all of plan could make a difference for on Oct. 22. But the First Lady was them ready to agree on why good some low-income couples, but pay- sugarcoating the problem: It will child care matters and how to get ments would have to be massive to take a lot to improve the quality of people to pay for it. keep single parents at home. the nation's child care and access to Ah, good, another conference. As for fixing child-care supply, it. Most likely, she knows that Wash- When the Clintons host a confab, there are many models. Among the ington-like business and parents- chances are that (a) the topic will states, Florida has allocated $4 million hasn't the stomach for the big spend- compel, (b) the discussion will be to a pool that will match employers' ing that true solutions require. sober, and (c) not much will come of subsidies to workers. Georgia has it. This is social policy, Clinton style: used lottery revenues to increase Hammonds covers social issues. 46 BUSINESS WEEK / NOVEMBER 3 1997 News: Analysis & Commentary BASEBALL and attendance has cratered then. Pohlad says he can't better players because he gets BOTTOM OF cut of Metrodome parking, con cessions, and stadium advertising. THE NINTH Pohlad, 82, swears he doesn't want to sell: "No one wants The Twins could be the first to keep baseball in Minnesota more than I do." But on Oct. 3, MLB team to move in 25 years he signed a letter of intent to sell the club to Beaver for an C arl Pohlad, the billionaire banker estimated $130 million to $150 who owns the Minnesota Twins, says million. he's tired of covering $10 million to The Twins candidly concede $12 million in losses each year. If the that the agreement was designed state legislature doesn't approve a $400 OUTTA THERE? The team will stay only if to force the issue-to get Min- million publicly financed ballpark, Pohlad Minnesota bankrolls a new stadium nesota to follow other states that says that he'll accept an offer to sell the have found the money to retain team to investors who would move the vote on, the thought of throwing tax dol- home teams. "We've been told that noth- Twins to North Carolina (BW-Apr. 7). lars at Pohlad to keep the cellar-dwelling ing will happen until we get to the edge If the Twins migrate, it will be the Twins in town gets blood boiling. In fact, of the cliff," says Twins President Jerry first time a Major League club has relo- a recent poll shows overwhelming oppo- Bell. "We're at the edge of the cliff." cated since the Washington Senators be- sition to publicly financing a new ball- If the legislature can't come up with a came the Texas Rangers in 1972. But park. "Wherever I am, on the street, at deal for Pohlad by Nov. 30, the sale to the North Carolina group headed by Don the store, they're yelling at me, 'Don't Beaver goes forward-pending approval Beaver, who owns 10% of the Pittsburgh give in to those billionaires," says State by Major League Baseball. Beaver would Pirates and five minor league clubs, ap- Representative Kris Hasskamp. keep the club in Minneapolis for a year pears to have significant support among Pohlad bought the Twins in 1984 for and then move to North Carolina, leaving the Lords of Baseball. And in Minnesota, $36 million and bagged World Series ti- behind the first city to say "Enough!" where the legislature has had trouble tles in 1987 and 1991. But the team just to baseball's demanding owners. even crafting a stadium-financing bill to finished its fifth-straight losing season, By Justin Catanoso in Minneapolis HOLLYWOOD That figure, according to Katzenberg's quitting while his contract still had a filing, starts at $250 million. But ac- two-year option. cording to documents filed in a Califor- One Katzenberg confidant says the THAT DARN nia state court, Katzenberg's lawyers claim could exceed $400 million. But say he is also owed money from "all that could be just the beginning of the KATZENBERG forms of exploitation." His lawyers have damage, says Ladenburg, Thalmann & asked for figures on everything from a Co. banker Porter Bibb. "This could The ex-chief's demands on Who Framed Roger Rabbit? theme-park blow the lid off Disney and show just ride to the Broadway Beauty and the what a money machine it is," he says. Disney could hit $400 million Beast-and even on the Mighty Ducks "What do you do if you're negotiating hockey team. Disney argues that with a star or a toy company and they A round Hollywood, folks are look- Katzenberg forfeited any such bonus by know just how profitable you are?" ing forward to Nov. 18, when one of the juiciest shows of the WHO'S LAUGHING NOW? Oddly enough, the executive (TOP TO-BOTTOM) PHOTOGRAPHS BY MARK DUNCAN/AP/WIIDE WORLD B. LITTLE/SYGMA EVERETT COLLECTION who may play the biggest role season will open. On that date, Walt Katzenberg is suing for is Wells, who died in a heli- Disney Chairman Michael D. Eisner a piece of the profits from copter crash five months before and his former studio chief, Jeffrey such studio blockbusters Katzenberg quit. Wells negoti- Katzenberg, will meet in a Los Angeles ated Katzenberg's 1988 con- courtroom to play out the latest act in as The Lion King tract. Using what Katzenberg their bitter feud. Katzenberg intimates call "a smoking-gun quit in a 1994 blowup-after memo" said to be written by Eisner wouldn't name him Wells and supporting the ex- president to succeed the late chief's contentions, Katzenberg's Frank G. Wells. Katzenberg side staged-and won-a pair then sued over his exit pack- of mock trials in September. "If age, leading to this showdown. there is a smoking-gun memo, I Even by Tinseltown stan- don't know about it," retorts dards, the payoff could be epic. Disney lead attorney Louis M. Katzenberg's suit seeks 2% of Meisinger. "He can take the the profits from the films and mock jury to his mock bank ac- TV shows he put into produc- count." Just the kind of script tion between 1984 and 1994: Hollywood loves. His lawyers say this money By Ronald Grover was promised in his contract. in Los Angeles 48 BUSINESS WEEK / NOVE MBER 3. 1997 U.S. NEWS plan. But in a private meeting, chief Clin- ton administration lobbyist John Hilley told Lott that Democrats would no longer Workfare accept conditions they considered anti- union. Hilley's turnabout so angered the normally composed GOP leader that the meeting disintegrated into a profane shouting match and Lott stalked out. Mary Silent White House. Still, some Demo- crats are uneasy about defending the sev- erance-pay provision and gripe privately that labor's stand is untenable. Even pro- labor New York Sen. Daniel Patrick Moy- Poppins nihan cautions that unions shouldn't "close down the enterprise on which they Should welfare survive." Moynihan has harsh words for the White House, which has been all but moms take care of silent on Amtrak since the summer. In- side the administration the issue has other people's kids? been overseen primarily by political oper- atives, some of whom have union ties, BY ELISE ACKERMAN rather than by Transportation Depart- ment officials. Asked about the White S states require more welfare moth- House's position on Amtrak, Moynihan A ers to work, two obvious questions replies, "There hasn't been one." arise: Where will they find jobs, Organized labor is not the only Demo- and who will care for their chil- cratic interest group that opposes ele- dren? It's easy to imagine the light bulbs ments of the bailout package. Trial law- appearing over the heads of welfare re- yers, who succeeded in stifling the bailout formers. Why not solve both problems at two years ago, object to a provision that the same time by training welfare moth- would limit the liability of Amtrak and ers to be day-care providers? Many states freight rail lines in case of a crash. In 1987, are doing just that. And some women on a Conrail freight train operated by an engi- welfare, when they are carefully screened neer who had been smoking marijuana hit and well trained, do prove to be capable an Amtrak train, killing 16 people and in- day-care providers. Kristina Thomas has left welfare and gone to work juring more than 100. Conrail eventually But at the White House conference on paid out more than $100 million in dam- day care last week, would-be reformers thousands of welfare mothers will under- ages. Republicans say that Amtrak would were manifestly uncomfortable with the mine the quality of care. For reasons not be devastated by such a financial hit, and idea. "I don't believe we should allow day always of their own making, some women they have included in the bailout a meas- care to be a workstation for workfare," de- on welfare have poor parenting skills, a ure to limit punitive-damage awards to no clared Bishop Joseph Sullivan of the history of being abused, or not enough more than $250,000 per passenger. (Sev- Brooklyn Diocese, to resounding ap- education and business acumen to pro- eral commuter railroads already have sim- plause. Witness after witness emphasized vide adequate care for kids. "The way I ilar liability caps.) But the trial lawyers op- that day-care employees must be better hear [this idea] talked about makes me pose virtually all efforts to limit damages trained and higher paid than they are cringe," says Ellen Galinsky of the Fam- in lawsuits. For the time being they are now. Although day-care advocates are of- ilies and Work Institute in New York City. lobbying quietly and letting the unions ten reluctant to discuss this publicly, they "There is a mistaken assumption that any- lead the charge against the bailout pack- are concerned that plans to hire tens of one can [provide good day care]." age, but they say that even if the House ap- Violence at home. Over the NINA FOR proves the legislation, they believe they next five years, as the work can block it in the Senate. requirements in last year's Taxpayers have a large stake in Am- welfare reform law kick in, trak's fate. Keeping the railroad going will the number of children ultimately cost much more than the pend- needing subsidized day care ing $2.3 billion bailout. But letting it die is likely to triple to 4.5 mil- could also be expensive. Union leaders say lion. Already, most states that if Amtrak goes out of business they have lengthy waiting lists. will invoke the six-year severance provi- To make things worse, expe- sion for all eligible workers. The GAO con- rienced day-care workers tends the government is not obligated to are deserting the field in pay it, and a lawsuit over the question is droves, discouraged by the virtually certain. But if the government meager wages. (The average loses, it's estimated that even if Amtrak salary is roughly $12,000.) closes down it could wind up costing tax- That's why New York, Cali- payers an additional $6.9 billion. Diana Insula takes care of kids in her Columbia, Md., home. fornia, Texas, Florida, and 36 U.S.NIWS.& WORLD REPORT. NOVEMBER 3. 1997 JEWS other will flinch before Amtrak goes Amtrak headed for a bankrupt. "I'm very panicked," said one Capitol Hill staffer. "We're very possibly going off a cliff." Precarious finances. Dire predictions political train wreck? about Amtrak have been around since its founding in 1970, but this time the rail- road's problems are concrete and immedi- ate. Despite $19 billion in federal subsi- Surprisingly, Democrats may derail a bailout dies over the years, Amtrak's current financial condition is "very precarious," according to the General Ac- JEFFREY MACMILLAN FOR USN&WR counting Office, which notes that more than half the rail- way's passenger cars are "at or approaching the end of their useful life." Amtrak is so cash poor that it will have to borrow $80 million this year just to make its payroll. The prospect of a strike this week could make it even harder to keep Amtrak afloat. A track-maintenance union that represents 2,300 of Amtrak's 20,000 workers is threatening to shut down the railroad unless its mem- bers get 3 percent annual raises. (Late last week, nego- tiators agreed to a deal that would permit all Amtrak commuting service to contin- ue even if there is a strike against the railroad.) Though the requested raises are modest, Amtrak's man- agement says there is no money for raises, period. In- If Amtrak workers strike later this week, the railway could become insolvent within a matter of days. deed, Amtrak President Tom Downs says that a strike BY KENT JENKINS JR. years' severance pay-nearly a quarter of could push the railroad to near bankrupt- a million dollars for a worker making the cy in less than a week. In the event of a ight now, Amtrak needs every union average of $40,000 per year. strike, Congress is likely to intervene R friend it can get. The nation's long- The GOP bailout package includes a quickly to protect the troubled railroad beleaguered passenger rail system measure eliminating the severance plan, from insolvency. is losing so much money that it which Republicans deride as indefensibly Shouting match. When Republicans first could go broke by spring-or even sooner generous. But on Friday, House GOP lead- put forward their bailout plan two years if employees carry out a threat to strike ers failed to pass the bailout because of ef- ago, Democratic lawmakers and the this week. But when Amtrak went looking forts by Democrats and a few pro-union White House were worried enough about for help in Congress last week, some of its Republicans to protect the severance pol- Amtrak that they were willing to give in to oldest friends were distinctly unhelpful. icy. Democrats in the Senate are also Republican demands such as eliminating House Democrats, who had poured mon- threatening to oppose the bailout as long the six-year severance-pay provision and ey into the railroad for years, voted al- as it squeezes the union, and labor is making it easier to turn over union jobs to most unanimously to block a GOP-spon- pressuring President Clinton to veto the nonunion contractors. By the time Re- sored $2.3 billion federal bailout. legislation unless the offending measure publicans tried to revive the bailout this The central reason for the Democrats' is removed. Each party is betting that the summer, Democrats had changed their stand is a quiet campaign by or- minds, in part because of la- ganized labor to protect one of the By law, laid-off Amtrak employees bor's $35 million campaign most lavish employee benefits in against Republicans in the American industry. By law, any 1996 election. In June, Sen- Amtrak employee who is laid off is are entitled to as much as six ate Majority Leader Trent entitled to a year of severance pay Lott of Mississippi offered for each year he or she has worked years' worth of severance pay. to include the Amtrak bail- there, up to a maximum of six out in the balanced-budget 34 U.S.NFWS & WORLD REPORT. NOVEMBER 3. 1997 women well suited to child care. Twenty- six-year-old Diana Insula fit the profile of a troubled welfare recipient. Four years ago, her boyfriend broke down the door, shattered her windows, and threatened her with a weapon, leading her to jump out of a second-story window to escape. At another point, she spent nearly seven months living in a homeless shelter with her child. But rather than squelching her spirit, the experiences strengthened her determination to pursue a career. "I wanted to follow my dream to take care of kids," she says. Insula got her license to be a family-day-care provider in 1995. Working nearly around the clock as a child-care provider and at a second job as a security guard, she saved enough money to purchase a spacious, sunny townhouse in Columbia, Md., where she cares for up to seven children at a time. Her clients praise her effusively. "She has a love for children that radiates from the inside," says Sheila Hobson, the mother of two girls, ages 3 and 6, cared for by Insula. Insula credits her success to the unflag- ging support of a state official who took a personal interest in her case. The handful of pilot programs that have consistently transformed welfare recipients into pros- perous day-care providers all offer long- term, intensive training and follow-up as- sistance. Nearly all the 43 family-child- care providers linked to the Acre Family the Happy Face Day Care Center in McMurray, Pa. She hopes one day to run a center at home. Day Care in Lowell, Mass., were once on welfare. Acre refers parents, conducts on- at least a dozen other states have initia- Many women on welfare, however, live in going training, has a social worker on tives designed to train welfare mothers to public housing that has a multitude of call, and provides economic aid. "I believe work in child care. housing-code violations. Earlier this year a welfare recipient has to be part of a net- But state officials have discovered that a program to train 20 women in Louis- work," says Anita Moeller, Acre executive many welfare recipients are not good can- ville, Ky., faltered, in part because the director. "Being a family-child-care pro- didates for child-care jobs. About one homes of some trainees did not meet state vider is just too isolating to make it on third of those on public assistance are de- safety standards. In Lowell, Mass., one your own." pressed. Some 55 percent of welfare fam- woman set up a day-care operation in her Mindful of the difficulties, Kristina ilies have the television on seven hours or apartment, only to have it shut down after Thomas, a 27-year-old from Claysville, longer each day. Only half have 10 or more the unit below became infested with fleas. Pa., completed a training course last win- books in the house, and reading to kids is She ended up in a homeless shelter. ter and went to work at a nearby day-care not routine. For young children, who need Despite their initial enthusiasm, few center. While many welfare mothers have constant stimulation, the mother's own would-be caregivers anticipate the de- eschewed jobs that pay as little as Thom- educational shortcomings may be part of mands of running their own business. So- as's-$800 a month-she hopes she can the problem-more than a third of welfare cial workers discovered that of the rough- use the experience to someday open her recipients test at the "least proficient" lit- ly 60 women in the South Bronx who own home-based day-care business. eracy level. That means they could not trained to be providers over the past two But most welfare recipients don't want read a street map or calculate the total cost years, hardly any had gotten their family- to follow Thomas's example. They aspire of a purchase from an order form. day-care operations off the ground. There to jobs that pay more and have better Violence plagues many welfare fam- was a strong demand for their services; prospects for advancement. In some ilies. One study in Washington State waiting lists at neighborhood day-care ways, being a day-care worker just showed that 55 percent of welfare mothers centers were hundreds deep. Yet the 15- doesn't seem like much improvement had been victimized by violent boyfriends hour course mandated by the state didn't over being on welfare. Before, women got or spouses. This is an especially big prob- fully prepare them to juggle bookkeeping, "paid" to take care of their own kids. Now lem because most welfare mothers want to menu and activity planning, budgeting, they can get paid to take care of someone work at home, in part so they can continue marketing, negotiating with parents, and, else's. Welfare reformers may see this as to take care of their own kids. finally, caring for children. progress. Or they may be forced to admit Homes used for day care need to be not Still, the ranks of public-aid recipients that there aren't many Mary Poppinses only violence free but well constructed. include some extraordinarily resilient hiding on the welfare rolls. U.S. NEWS IN BRIEF TOP KISER GLACIER NATIONAL PARK ARCHIVES BOTTOM DAN FAGRE-US GEOLOGICAL SURVEY ENVIRONMENT liable-reaffirmed earlier find ings that many students lack AI Gore on even a basic grasp of science. NAEP reported that only 26 the warm seat percent of fourth and eighth graders and just 18 percent of n his 1992 bestseller, Earth 12th graders tested in 1996 In The Balance, environmen- were proficient in science. Only talist Al Gore warned that the 3 percent of students in these world "must act boldly and grades had advanced knowl- quickly" to combat "the most 1910 edge of the subject. Among serious threat that we have high school seniors, a striking ever faced." That threat-glob- 77 percent of African-Ameri- al warming- cans and 67 percent of Hispan- has become a ics scored below the "basic" lev- defining issue el, which included items like for the vice identifying ice as the solid form president as he of water. -Thomas Toch begins to posi- tion himself MEDICINE for a presiden- tial campaign. 1997 New rights But the plan Photos show global warming's effects on Glacier National Park. Gore to curb green- for patients? house gases UNIPHOTO announced last week by the presidential bid. EDUCATION Clinton administration was Other nations gathering in based more on political prag- Bonn to negotiate a new cli- A flunking grade matism than environmental mate treaty denounced the purity. The blueprint-largely U.S. proposal as weak, given on science tests fashioned by Gore-proposes that the United States pumps to cut domestic emissions back out one fourth of the world's to 1990 levels over the next 10 heat-trapping carbon dioxide C ongress is attacking Presi- dent Clinton's plan to tough- to 14 years with tax cuts and and methane. Opinions in the en education standards with market incentives. Tougher business community varied, new national exams, but a sur- measures would please envi- but many environmentalists vey released last week suggest- F or patients frazzled by a rap- ronmentalists but could agreed with the Sierra Club's ed that student achievement idly changing health care threaten the booming U.S. Dan Becker, who said the ini- needs to be bolstered some- system, the sort of "medical economy by raising energy tiative was like "fighting a five- how. The National Assessment bill of rights" outlined last prices and unemployment, fac- alarm fire with a garden hose." of Educational Progress week by a presidential panel tors that might hurt Gore's -Michael Satchell (NAEP)-widely considered re- can't come soon enough. The Advisory Commission on Con- sumer Protection and Quality in the Health Care System pro- LAW ENFORCEMENT holed up in her home, posed a broad new range of A costly, disputed Illinois standoff threatening all comers with protections for patients, in- a shotgun, allegedly firing cluding the rights to appeal de- AP A stalemate involving a 51- twice at police. Authorities nials of care or coverage by in- year-old former nurse has initially tried tear gas, loud surers and HMOs, to obtain become the latest-and per- music, and nonlethal bean- more information about their haps the unlikeliest-symbol bag bullets to get her out, doctors' expertise, and to keep for Americans who believe before backing off and as- their own doctors for at least government authority has suming a lower profile. The 60 days even if forced to gone too far. Relatives had scene has attracted militia switch health plans. President grown worried that Shirley members who feel the ac- Clinton is expected to endorse Allen, who lives in rural tions of both the police and the group's report when it's Roby, Ill., was becoming pro- Allen with her late husband Allen's family have been finished early next year, but gressively more paranoid heavy-handed. Last week, he'll have to push if it is going and delusional, following the death of her to have any influence on the the standoff passed the one-month mark. husband in 1989. When she resisted their The conflict has cost Illinois taxpayers near- patchwork of health care re- form bills now before Con- efforts to help, the family obtained a court ly half a million dollars in round-the-clock order for a psychiatric exam. But Allen gress. -Shannon Brownlec police surveillance. -Warren Cohen Edited by Gordon Witkin 40 WORLD REPORT i. 1997 COR USN&WH ETWEEN THE LINES older kids? All of the above? Becausé the much-touted MAKING CHILD "conversation" on race relations isn't likely to lead to new lawmaking, child care might be the last signature legislation of the Clinton era. But first "Billary" (remember that?) must CARE MACHO prove they learned something from their health-care fiasco. There are two big lessons that seem to have been drawn from that sorry episode right, one wrong. The right lesson is that a Washington- As she turns 50, Hillary Clinton seizes the designed Rube Goldberg contraption- even if it's good enough for the U.S. chance to take her pet issue to the big time military will fail; 1970s-style federalized child care is DOA. The wrong lesson is that any kind of big new spending program on a BYJONATHAN ALTER so-called liberal issue is doomed. Quite the contrary. Flexible, hardheaded, locally run liberal ideas that relate to women are ORGET THE PRESIDENT'S GENITALS. I'M booming, and almost untouchable by F more interested in the genitals of an issue. Republicans staring into the abyss of a 17- I'm wondering if child care can develop point gender gap. some cojones and move out of the ladies' The politics of what were once known as department into the macho world of big- woman's issues are rapidly changing. Re- time, bone-crunching legislation, where the real nuts member the "Violence Against Women" get cracked. Offended? I hope so, because I'm bill? A few years ago, it was laughed off offended, too. I'm offended by men so out of touch Capitol Hill; this year it sailed through vir- with the needs of children (including their own) that tually unopposed, thanks to the gender gap. they think of "child care" as just another feminist Meanwhile, welfare reform (a macho issue) whine imported from Denmark or someplace. I'm has now melded with child care. Any politi- offended by women who claim to recognize that the cian who's for forcing welfare mothers to poor quality of much of the care is a national scandal, WALLY MCNAMEE FOR NEWSWEEK work without providing help with child but are so badly organized that for a decade many care now looks like an idiot. states have actually had to return federal child-care The Christian Coalition notwithstand- money to Washington because no one persuaded ing, child care can be redefined as apple their lame legislatures to match it. And I'm doubly pie under two conditions. The first is that offended by communities all over the country where the Democrats aim high. If they propose kids get out of school at 3 p.m. and spend the rest of Dick Morris-style incremental change, the day totally unsupervised. Then we wonder why Children's hour: At the conference, without serious money, they'll end up with they get into drugs and knock each other up. the First Lady focused on an issue virtually nothing. The second condition is Hillary Clinton is offended, too, though she is that has long been close to her heart that the issue be framed so as not to offend working hard to control the thermostat of her stay-at-home mothers. Hillary already outrage. With her popularity soaring, she found the perfect way to seems sensitive to that, stressing that she rejects "one size fits all" spend the week before her 50th birthday. After five years in ideas about child care. She even points to a North Carolina program Washington, she is finally immersed in the issue that has been that offers new mothers stipends for diapers and baby food if they closest to her heart for the last 20. But to what end? The question stay home with their newborns instead of rushing back to work. that hung in the East Room chandeliers last week was whether the Even so, child care is a perfect example of a common White House Conference on Child Care, chaired by the First conundrum in the Clinton era: how do you replicate what's Lady, was the beginning of a big 1998 idea a bid to finally catch working in places like North Carolina (the Smart Start early- up to every other industrialized country in the world on this childhood program). It's not as easy as it sounds. According to front or just another gabfest for the faithful. market principles, the good ideas should naturally spread, but The statistics are horrifying. Average pay for child-care workers: they don't. "Why is the market dysfunctional in cases like this?" $12,000, with turnover greater than every occupation except gas- the president asked Treasury Secretary Bob Rubin at the station attendants. Average training: none. Average portion of a conference last week. Rubin paused, then said, "Are you asking low-income worker's wage that goes for this often inadequate care: me?" The crowd laughed, but the president was earnest: "I think 25 percent. According to one study, only one in seven child-care fa- it's the single most important question about social policy today." cilities meets minimal standards for quality. Hillary says she wants Rubin, whose success with the economy allows him some to "start a national conversation" on all of this, with an eye toward cheekiness, replied, "You're the president of the United States. what her husband promises will be a major child-care plan in his You're supposed to know the answer to these things." State of the Union speech next January. The president asked for But of course he doesn't. Even with their bully pulpits and public advice on what the specifics should be. Expansion of Head gender gaps, the president and First Lady seem small when Start to reflect new research on the critical importance of the ages arrayed against our longstanding neglect of children. Now we'll zero to 3? Expanded tax credits for child care? Help for after-school see if they're serious about growing larger. programs (many of which have been canceled in recent years) for 70 LEADING QUESTIONS partments of local hospitals. Hospitals sometimes have managed-care programs with liberal rules. INSERT CARD, On July 1 a federal law took effect that's supposed to save other people from the dread you face. Workers who lose their group insurance will now have a right to a LOSE SHIRT similar policy somewhere else, regardless of health. But for anyone who has stood in your shoes, this new "right" is a laugh. in many states. Yes, people can go from group to individual coverage, guaranteed. But in- Trading stocks at your ATM is easy, but guess surers can deliberately price those "guar- anteed" policies out of reach. who's to blame if there are brokerage mistakes? Q UESTION: I'm wondering whether I qualify for the new Roth IRA. which will BY JANE BRYANT QUINN accumulate money tax free. I'm retired with a pension, so have no earnings of my own. Q UESTION: I have a brokerage account at Citicorp Investment But my wife earns about $6,000 a year. Can Services and check stock prices through a Citibank ATM. Based she-set up a Roth for me? on what it showed, I put in a sell order for a stock at a particular ALFRED PARRINELLO, price. The trade wasn't executed, even though the ATM showed (and GAINESVILLE, FLA. Citi's phone reps confirmed) that the market reached my price on nu- She sure can. When Roth IRAs open for busi- merous days. Then the company went bankrupt. Later I obtained ness next year, any worker who qualifies can market prices for that period from another Citi source and discov- start an account for a nonworking spouse. ered that I'd been misled. Citi's ATM overstated the stock price, so I Your wife can put away $2,000 for herself and was asking more for it than I could get. What are my rights? another $2,000 for you, in separate accounts. GOURI MUKHERJEE, BROOKLYN, N.Y. Roths are open to couples with adjusted gross In a letter that I suppose Citi considers "customer service," vice incomes of up to $150,000, phasing out at president Susan Murphy says it's all your fault. She acknowledges $160,000; or singles up to $95,000, phasing out at $110,000. Citi's errors, then scolds you for relying on an ATM to see if your Financial planner James Shambo of Lifetime Planning Concepts stock had sold. She also thinks you shouldn't have taken so long to in Colorado Springs makes the following smart suggestion: don't discover that Citi's price was wrong. So silly that you kept trusting wait until 1998. Contribute $4,000 to two tax-deductible IRAs for the ATM. Other brokerage customers: take note. 1997. Next year switch that money into two Roths (conversions Citibank's Connie Kain now says that Murphy herself was (sob) are allowed for people with incomes under $100,000). You'll owe mistaken when she told you the ATM was wrong. Checking back, income taxes on the switch but can stretch out the payments over Kain says, the bank found that its source for the price quotes was the next four years. Conversions generally make sense, as long as right, and therefore presumes that the ATM must have been right, you switch every dime from your old IRA into the Roth, paying too. There's no explanation for why Citi's phone reps would have the tax out of other funds. But you probably shouldn't convert if confirmed a different price-namely, the higher price you were you'll have to withdraw some IRA money to pay the tax. trying to get. As Kain sees it, you overpriced your stock based on no evidence at all. You could try arbitration. Lots of luck. Q UESTION: I'm a married active-duty army officer, 28. We antici- pate moving every three or four years for the next 15 years or so. Q UESTION: I am trying to obtain affordable health insurance for Should we buy a house to build equity for the day we settle down? Or my husband, Dennis, 56. We're both retired. He had non-Hodg- should we plug away at mutual funds and stocks, and use those funds kin's lymphoma in 1982 and again in 1986, which was covered by in- to buy a house when we retire from the military? surance we'd bought through our business. Since 1987 he has been RICH PRIOR, AUGUSTA, GA. cancer free. His current, individual policy through PFL Life, howev- If you think you might retire in Augusta (nice town!), you could er, pays only for outpatient hospital care, and the price just rose from buy a house and, when you move, try to rent it for enough to about $4,000 to $7,000 annually. That's prohibitive. But other poli- cover its cost. But you'd need a local manager to find tenants and cies won't insure him for any cancer-related bills at all. look after the place, and you can't predict what the upkeep will be. BEVERLY KENDALL, HENDERSONVILLE N.C. Financial planner John Allen of Allen-Warren in Arvada, I can hear the frog chorus of insurance companies croaking. Colo., thinks your best bet is to rent at the lowest comfortable "We're not in business to insure known risks." In fact, nowadays level and squirrel away as much as you can into mutual funds. insurers are turning down people (or pricing them out) on much He'd pick funds of moderate risk for your future-home pur- flimsier grounds than they have in your husband's case. The gov- chase-say, growth-and-income funds. Keep this money sep- ernment covers everyone at 65, regardless of health, but younger arate from other retirement funds, which might be invested people have to pay their own way, find charity care or die. more aggressively. NEWSWEEK tried several agents who scout coverage for the Reporter. TEMMA EHRENFELD hard-to-insure. but without success. Thomas Richman of Creative Benefit Plans in Cranbury. N.J., suggests calling HMOs. The ma- Send your questions to Jane Bryant Quinn, NEWSWEEK Focus: jority accept only employee groups, but many take individuals and On Your Money, 251 West 57th St., New York, N.Y. 10019. Letters may cover pre-existing conditions. Or try the social-services de- can be answered only in the column.