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https://clinton.presidentiallibraries.us/files/original/0c45dbf28bc5cc21ee0dacfcff0fd404.pdf
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PDF Text
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FOIA Number:
2006-0469-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Speechwriting
Series/Staff Member:
Michael Waldman
Subseries:
OA/ID Number:
14417
FolderlD:
Folder Title:
SOTU [State of the Union] 1999 Planning Book [Binder] [2]
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Jennifer R. Muller @ OVP
12/22/98 02:40:19 PM
Record Type:
To:
Record
Joshua S. Gottheimer/WHO/EOP
cc:
Subject: CFR follow-up
hope Josh Gotbaum found this interesting for a while, sorry for the delay!
—Forwarded by Jennifer R. Muller/OVP on 12/22/98 02:49 PM
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^
Jennifer R. Muller
12/17/98 03:45:01 PM
Record Type:
To:
Record
Michael Waldman/WHO/EOP @ EOP, Joshua Gotbaum/OMB/EOP @ EOP
cc:
Subject: CFR follow-up
As I mentioned in the last CFR meeting, coupling Access America with voting could be an
idea for the future: as Michael summarized, if you can buy a car on line, you can vote on
line. There is a pilot project planned that holds great promise.
To strengthen democracy we recommend a couple of technology based advances- on-line
disclosure and Internet voting:
On-Line Disclosure
Morley Winograd recommends we support on-line disclosure of information that is now
reported to the FEC on paper. Last year the House passed legislation that would create real
time, on-line disclosure for all Federal campaigns. We should recommend that the Senate take
up the idea and join the House in supporting it.
Internet Voting
Internet voting being planned by the Department of Defense as a way to keep Americans on
the front lines enfranchised. We have the technology to make voting easier for more
Americans nationwide. While mail ballots are highly controversial (Oregon's request for a
waiver to use mail ballots in NH primary was rejected by DNC because of time restrictions
on when voting could commence), on-line voting is a wave of the future with great possiblity.
�E- Ballot Pilot Program at DOD
The Federal voting Assistant Program at the Department of Defense is engaged in creating a
Voting over the Internet Pilot project with five states: South Carolina, Florida, Missouri,
Texas and Utah. They volunteered to participate as part of a state, local and federal alliance.
The program is aimed to be up and running in time for the 2000 general election. It is being
tested in seven locales in the states, for about 50 people at each site, totaling 350 individuals.
Those voting this way will be given encryption devises and those on the 'decoding end' will
have a public key that separates the person's identity from the vote- at no time can the
electronic envelope be opened. These ballots will function electronically much the same way
that absentee ballots function, where pages are separated to detach the citizen's identity from
the ballot cast. Electronic envelopes are highly secure, and are being designed in partnership
with the NSA. Participants will be able to both register to vote and vote on-line for the year
2000 general election.
About the Program
At this juncture, the e-ballot is primarily being developed for military voters around the world
who face exceptional barriers to voting (i.e. in submarines or the front line where even mail
delivery is erratic at best.) These programs are being developed as part of the Uniformed
Service Act and the Overseas Assistance Act that aims to improve access to voting for this
class of individuals, around the globe. On line voting can surpass even mail in ballots in their
efficiency, 1/4 of all absentee voters don't vote because they report that ballots are never
received or are received it too late to meet the state deadlines.
Security and Anti-Corruption
The program operates using the Department of Defense's Public Key Infrastructure and works
with the Defense Information System Agency to provide maximum security. The technology
exists and DOD is working with NSA to ensure that these ballots are fool-proof.
On-Line Disclosure
Morley also supports on line disclosure of information that is now reported to the FEC on
paper. A bill, separate from the McCain - Feingold bill has already passed the House.
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MEMORANDUM TO KRIS BALDERSTON
FROM:
LEE SATTERFIELD
DATE:
December 18, 1998
SUBJECT:
Options
State of The Union Address - DOL Program Participant
I.
James Antosy - Dislocated
Worker
James Antosy was laid off from his job at Uniquest in Plymouth Meeting, PA
when his
company decided to downsize, and was directed to PENNCARD when
he applied for
unemployment compensation benefits. Mr. Antosy had already
been working part-time
towards his Baccalaureate Degree in Computer Science,
but it was a slow process while
holding down a full time job. Once his
income was cut-off, continuation of his educational
pursuits was threatened.
Mr. Antosy's reemployment planning, however, determined that to
continue in
his field, it was necessary to continue his degree. Through PENNCARD'S
Training Account process he chose Alverna College (Reading, PA) as his training
vendor and was able to secure a new job as an Independent Consultant/Program
Analyst for PA's State
Employees' Benefit Trust Fund. Mr. Antosy believes
strongly in the benefits of the voucher system and credits it for helping him to
fulfill his dream of finishing his degree.
*Mr Antosy introduced the President at the Workforce Investment Act
signing
ceremony.
II.
Yutiv Lipscomb (Baltimore, MD) - Welfare to Work
In 1 9 9 6 , Yutiv Lipscomb was referred to the Southwest Career Center by the
Department of
Social Services. She was immediately selected for training at
the NAACP national
headquarters and quickly rose through the ranks with her
demonstrated commitment and
exemplary skills. Starting as a switchboard
operator, she was promoted to a position in the
Chief Operating Officer's office.
In January of 1 997 she was asked by Kweisi Mfume to take
a full-time position
in his office as his personal secretary.
* M s . Lipscomb participated in the Vice President's "Conversations with
America"
event.
1
�III.
Lee Elbert Ross (Hempstead, NY) - Summer Jobs
As the thirteenth of fifteen children in a family that was economically
disadvantaged, Lee
Elbert Ross earned a minimum wage while working in a
federally funded youth employment
program for three years during high school.
Currently, he is a tenured Associate Professor
of Crime and Justice at the
University of Wisconsin where he mentors students. He is the author of
numerous articles in the field of criminal justice and in April 1998 he published his
first book, "African American Criminologists." In addition, Lee Elbert's sister
Ernestine and
brother Lee Joseph also participated in the summer jobs
program.
�"Page 1"
Clinton-Gore Administration Accomplishments:
American Families Are Better Off Today
Than They Were Six Years Ago
Over the last six years, President Clinton and Vice President Gore have led
America in preparing for the 21st Century w i t h a new vision of government -- a
government that does not attempt to do everything, nor a government that
withdraws to the sidelines. The accomplishments of the Clinton-Gore
Administration are giving Americans the tools to realize their potential; providing
opportunity while demanding responsibility; and building One America in which all
are challenged to serve.
Economy, the Strongest Economy in a Generation
Balanced the Federal Budget - in 1 9 9 2 , the budget deficit was $290 billion, a
record dollar high. This year, the budget will be in surplus for the first time in 30
years.
Nearly 17 Million New Jobs ~ more new jobs in nearly 6 years than were created
during the entire 8 years of the Reagan Administration (16.7 million under Pres.
Clinton vs. 16.0 million under Pres. Reagan).
Fastest Real-Wage Growth In More Than T w o Decades - after adjusting for
inflation, wages have increased 2 . 5 % in the past 12 months -- the fastest real
wage growth in more than t w o decades.
Lowest Unemployment in Nearly Thirty Years -- down from 7 . 5 % in 1992 to 4 . 6 %
today.
Highest Homeownership Rate in History -- there are more than 6.5 million new
homeowners since the President took office.
Families: Strengthening America's Working Families
$ 5 0 0 Per-Child Tax Credit - 26 million families with 4 0 million children will receive
the $500 per-child tax credit.
Tax Cuts for Working Families - 15 million working families receive tax relief
through the President's expansion of the Earned Income Tax Credit.
Largest Four-Year Drop in Child Poverty Since 1960s -- Under President Clinton, the
child poverty rate has declined from 22.7 percent to 19.9 percent - that's the
biggest four-year drop in nearly 30 years (1965-1969).
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Increased the Minimum Wage from $4.25 to $5.15 per hour - increasing wages for
10 million workers.
Protecting Families -- Family Medical Leave allows workers to take up to 12 weeks
of unpaid leave to care for family members without fear of losing their jobs.
Millions of workers have already benefited from FMLA since its enactment.
Signed Landmark Adoption and Safe Families Act - this law will help thousands of
children waiting in foster care move more quickly into safe and permanent homes.
Putting Families First - put in place first-ever plan to protect our children from
tobacco. Required the installation of V-chips in all new televisions. Encouraged
schools to adopt school uniform policies to deter school violence and promote
discipline. Produced guidelines on religious expression in public schools.
Education: Largest Investment in Education in 30 Years
Making 13th & 14th Grades as Universal As High School - making the first t w o
years of college universally available w i t h $1,500 HOPE Scholarship credits.
Expanding College Opportunity w i t h Tuition Tax Credits, Education IRAs, and
Largest Increase in Pell Grants in 20 Years -- 2 0 % tax credit helps offset tuition
costs for college or lifetime learning. The expanded IRA allows penalty and tax-free
withdrawals for education. Nearly 4 million students will receive a Pell Grant of up
to $ 3 , 0 0 0 , 3 0 % larger than when the President took office.
Making College More Affordable - cut student fees and interest rates on all loans,
expanded repayment options including income contingent repayment, and improved
service through the Direct Loan Program.
Paying for College Through Community Service -- this year, nearly 5 0 , 0 0 0 young
people will take advantage of the opportunity to pay for college (or repay student
loans) by performing community service through AmeriCorps.
Teaching Every Child to Read by the 3rd Grade - more than 1000 colleges have
committed work-study students to tutor children in reading, and thousands of
AmeriCorps members and senior volunteers are organizing volunteer reading
campaigns. In addition, the President is working to enact an early literacy bill such
as the America Reads Initiative that will provide more tutors after school, improve
the teaching of reading in our schools, and help parents help their children learn to
read.
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Striving for Excellence w i t h National Education Standards -- seeking high national
standards for all students, the President has proposed a first-ever national test in
4th grade reading and 8th grade math.
Preparing for the 21st Century w i t h Greater Education Technology - created the
Technology Literacy Challenge Fund to help connect every classroom to the Internet
by the year 2 0 0 0 , increase the number of multimedia computers in the classroom,
provide teachers with technology training, and promote the development of
high-quality educational software. Secured an e-rate (discounts worth over $2.5
billion every year) for schools, libraries, rural health clinics and hospitals to connect
to the Internet.
Expanding Choice and Accountability in Public School - supported increase of
public charter schools, from only one charter school in the nation in 1993 to more
than 1,000 charter schools this year.
Providing Early Education to More than 8 3 0 , 0 0 0 Children w i t h Head Start -- now
reaching more kids than at any time since its creation in 1965 and 2 0 0 , 0 0 0 more
children than in 1 9 9 2 .
Crime and Drugs: Lowest Crime Rates in Nearly 25 Years
Putting 1 0 0 , 0 0 0 New Police on the Street -- resulting in a nearly 2 0 % increase in
our nation's police force. At this time, more than 8 8 , 0 0 0 new officers have been
funded.
2 5 0 , 0 0 0 Felons, Fugitives and Stalkers Denied Handguns -- since the President
signed the Brady Bill into law.
Banned 19 of the Deadliest Assault Weapons and Their Copies - keeping assault
weapons off our streets.
Developed Comprehensive Anti-Drug Strategy Including $ 1 9 5 Million Anti-Drug
Youth Media Campaign - appointed four-star General Barry McCaffrey to be the
nation's Drug Czar. Strengthening and expanding the Safe and Drug-Free Schools
program.
Health Care: Increasing Access for Millions of Americans
Protected Medicare - protected, modernized and extended the Medicare trust fund
for at least a decade while offering new options for patient choice and preventive
care.
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�Enacted Single Largest Investment in Health Care for Children since 1 9 6 5 -- the
$24 billion Children's Health Insurance Program (CHIP) will provide health care
coverage for up to five million children.
Passed Meaningful Health Insurance Reform - signed the Kassebaum/Kennedy
Health Care Bill which limits exclusions for pre-existing conditions, makes coverage
portable and helps individuals who lose jobs maintain coverage.
Raised Immunization Rates to All Time High
9 0 % of toddlers in 1996 received
the most critical doses of each of the routinely recommended vaccines -- surpassing
the President's 1993 goal.
Ensuring Safe Food for America's Families -making food safety a priority. Issued new
standards to reduce and prevent contamination of meat, poultry, and seafood; signed the Food
Quality Protection Act with special safeguards for kids; issued new regulations that improve
the safety of fruit and vegetable juices; and created a President's Council on Food Safety
which will develop a comprehensive food safety strategic plan for federal agencies.
We/fare Reform and Community Empowerment: Largest Drop in the Welfare Rolls
in History
5.7 Million People Are Off Welfare Today - a more than 4 0 % decrease from 1 992
and the largest decline in the welfare rolls in history. Between 1996 and 1 9 9 7 , the
number of people who were on welfare in one year and working in the next year
increased 3 0 % to 1.7 million people. The President signed the landmark welfare
reform law to require work, impose time limits, and dramatically expand child care
spending.
Nearly 7 0 % Increase in Child Support Collections - signed into law the toughest
child support crackdown in history.
New Incentives t o Move People from Welfare to Work - the Balanced Budget
included $3 billion to move long-term welfare recipients into jobs and a tax credit
for employers.
New Funding to Help People Get to Work - the Transportation Equity Act for the
21st Century authorizes $750 million over five years for the President's Access to
Jobs initiative and reverse commute grants to help communities design innovative
transportation solutions so that families who need to work can get to work.
Expanded Investment in Urban and Rural Areas -- by creating over 120
Empowerment Zones and Enterprise Communities and expanding access to capital.
�Environment: New Standards to Protect Our Environment for the Future
Issued Toughest New Air Quality Standards in a Generation - issued new air quality
standards for smog and soot that will prevent 15,000 premature deaths a year and
improve the lives of millions of Americans who suffer from respiratory illnesses.
Cleaning Up Toxic Waste Sites and Redeveloping Brownfields - cleaned up twice
as many Superfund sites in less than six years as previous administrations did in
twelve. The Brownfields tax incentives have leveraged nearly $1 billion for
redevelopment of industrial sites and created over 2,000 jobs.
Providing Safe Drinking Water -- proposed and signed legislation to strengthen the
Safe Drinking Water Act to ensure that our families have healthy, clean tap water.
Reducing the Threat of Global Warming -- negotiated an international treaty to
reduce greenhouse gas emissions in an environmentally strong and economically
sound way. Proposed a five-year $6.3 billion package of tax incentives and
research investments to reduce greenhouse gas emissions through energy
efficiency and clean energy technologies.
Protecting Our Natural Treasures -- protected or enhanced nearly 150 million acres
of public and private lands, from the red rock canyons of Utah to the Florida
Everglades. Reached agreements to protect Yellowstone from mining and save the
ancient redwoods of California's Headwaters Forest.
Foreign Policy: World's Strongest Force for Peace, Freedom and Prosperity
Ratified NATO Enlargement - ensuring a more stable, democratic Europe and a
fully-integrated Russia.
Brokered Peace In Northern Ireland -- ending decades of bloodshed.
Secured Peace In Bosnia -- by brokering the Dayton Peace accords, sending
peacekeepers to the region, supporting democractic institutions, providing for
refugees and bringing war criminals to justice.
Leading Force For Peace In The Middle East -- in mediating the Oslo peace process
and in brokering the recent Wye River Memorandum - working towards a secure,
just and lasting peace in the Middle East.
Restored Democracy in Haiti - ending military dictatorship and stopping the flow of
�foctSiB.wpd
Page 61
refugees to the United States.
Protecting Americans from Weapons of Mass Destruction -- by dramatically
reducing Russian and U.S. nuclear arsenals through START treaties; ridding
Ukraine, Belarus and Khazakstan of nuclear weapons; extending indefinitely the
Non-Proliferation Treaty; and signing the Comprehensive Test Ban Treaty.
Combatting Terrorism -- by striking at terrorists in Afghanistan and Sudan,
increasing international cooperation and giving law enforcement new and stronger
tools.
Opening Markets Abroad to Create Jobs at Home -- by negotiationg over 240
free-trade agreements, including NAFTA and GATT.
Secured Ratification of the Chemical Weapons Convention -- banning the
production, stockpiling, and use of chemical weapons.
Led Efforts to Rid the World of Land Mines -- eliminating non-self-destructing mines
from our arsenals, seeking alternatives to self-destructing mines by 2006 and
devoting more resources to removing existing mines than the rest of the world
combined.
�Addressing New Threats to National Security -- from biological weapons and
cyber-terrorism by protecting our critical infrastructure, strengthening our ability to
respond to attacks and enforcing international treaties.
Developed International Crime Control Strategy -- to combat money launderers and
catch drug traffickers.
Strengthened Relations w i t h China - engaging its leaders in ground-breaking human
rights dialogue.
Containing Saddam Hussein - through diplomacy backed by force.
Persuaded North Korea To Freeze Its Dangerous Nuclear Weapons Program.
Leading International Efforts To Address Global Economic Crisis - and stimulate
worldwide g r o w t h .
Saved Mexico From Economic Disaster - by providing financial relief.
Improved Partnerships With Africa - through historic Presidential trip to Ghana,
Uganda, Rwanda, South Africa, Botswana and Senegal.
Science and Technology. Leading America into the Next Millennium
Historic Investments in Biomedical Research -- increased funding for the National
Institutes of Health (NIH) in critical research areas, such as cancer, the Human
Genome Project, HIV/AIDS and heart disease.
Building the Next Generation Internet - now connecting more than 100 universities
at speeds that are 100 to 1,000 times faster than today's Internet and developing
the next generation of applications, such as telemedicine.
Ensuring U.S. Leadership in Space, Science and Technology - increasing
investments in science and technology for five years in a row, while bringing down
the deficit. Continuing to support exploration of space including the Mars
Pathfinder mission.
Ensuring the Nation's Security -- Instituted a science-based program to maintain the
safety and reliability of the U.S. nuclear deterrent without the need for nuclear
testing, enabling the President to be the first world leader to sign the
Comprehensive Test Ban Treaty.
10/98
�^
Tanya E. Martin
12/22/98 11:22:21 AM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Teacher accountability real world examples
These are some good examples of places that are putting into practice the kinds of teacher
accountability measures that the administration supports. I'm on my way d o w n w / a f e w articles
and data sheets .
Promising Teacher Accountability Practices.
In the mid-1 QSO's, the Rochester, New York, school system increased
teacher salaries and established a new accountability system based
upon peer review and assistance. Teachers designed the
Career-In-Teaching (CIT) program, which established four career
stages: intern, resident, professional, and lead teacher. Teachers
progress through these stages based upon annual peer reviews,
including student academic performance as a factor. Lead teachers
receive a stipend from five to 15 percent of their salaries for
supporting teachers w h o need assistance, designing curriculum, and
other activities. Teachers preferred the rigorous attention to their
performance to the perfunctory performance ratings that existed
previously, in which 96 percent of teachers were rated as above
average.
The Minneapolis public school system piloted the Professional
Development Process (PDP) in 1989 and progressively expanded it until
it covered all teachers by 1 9 9 7 . Each participant in PDP writes a
development plan aligned w i t h district and school goals and curriculum
content standards, and selects four to six administrators, teachers,
parents, or university professors to serve as critical friends.@ The
system developed standards for effective instruction and provides
extra support to teachers who need it. The early success of PDP in
Minneapolis and its enthusiastic support from teachers helped lead to
the state = s decision to mandate a similar peer review process for all
teachers in the state.
Connecticut has designed a three-tiered process -- initial,
provisional, and professional - for teachers to become fully
certified. Prospective teachers must pass a basic skills test (Praxis
I) and a subject-area test (Praxis II or a state test) to receive
initial certification. After a year of teaching w i t h the assistance
of a mentor, they must complete a performance assessment based on the
�Interstate New Teacher Assessment and Support Consortium (INTASC) and
National Board standards to receive a provisional certificate.
Experienced teachers must renew their certificates every five years by
preparing portfolios that follow the INTASC and National Board
standards. Connecticut's performance-based assessment program was
instituted during a comprehensive school reform effort that included
substantially higher teacher salaries. During the first five years of
this program, the number of teacher candidates increased three-fold,
average SAT scores among teacher candidates increased considerably,
teacher shortages were eliminated, and student achievement climbed.
The Peer Assistance and Review (PAR) program in Columbus, Ohio, is a
rigorous peer review system that includes an intern program for new
hires and an intervention program for experienced teachers who are
experiencing trouble. Up to 35 longtime teachers - selected on the
basis of experience, knowledge, and ability to work w i t h others - are
employed full-time out of the classroom for three years at 120 percent
of their base salary. Each of these teachers works w i t h about 18 new
hires and perhaps one intervention case to demonstrate and encourage
good teaching practices, plan orientations, conduct workshops, and
evaluate performance. Fewer teachers need intervention than when the
program began and the district has a lower rate of attrition because
of PAR.
Recognition of Exemplary Teachers: Only 14 states currently provide
salary supplements to teachers w h o set out to become master teachers
through the National Board for Professional Teaching Standards (NBPTS)
process. States such as North Carolina and Ohio provide assistance
and incentives to apply for certification and a financial reward if
the application is successful. A very high percentage of teachers w h o
complete this process credit it w i t h a dramatic renewal of their
commitment and teaching skills.
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i
n
12/22/98 10:43:18 AM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: School Buildings
These facts have NOTbeen fully " v e t t e d " by the statisticians at the National Center for Education
Statistics -- I've asked them to send me any and all "facts" even ones that are still in proceiss. If
these look promising, let me know and I'll rush their process along.
- The average public school building in the U.S. is 42 years old. After 4 0
years, a school building begins rapid deterioration, and after 6 0 years most
schools are abandoned.
-- America's oldest schools also have a higher proportion of children in
poverty, the kids w i t h the greatest needs
- Our older school buildings (built before 1 9 7 0 and either never renovated or
renovated prior to 1980) are significantly less likely to be connected to the
Internet than those built after 1 9 8 5 .
�DEPARTMENT OF THE TREASURY
W A S H I N G T O N , D.C. 2 0 2 2 0
December 18,1998
MEMORANDUM FOR MARIA ESCHEVESTE
MICHAEL W A L D M A N t /
FROM:
Michael Froman
Sheryl Sandberg
RE:
State of the Union
To follow up on the meeting at Treasury yesterday, please find the following attached:
1.
2.
3.
4.
5.
6.
Remarks by Secretary Rubin before the National Foreign Trade Council
Language on Democratization of Capital in the U.S.
Suggested paragraph on IRS
Executive summary of Treasury's Southwest Border Region study
Description of the Youth Crime Gun Interdiction Initiative and the Gun Show Report
Draft memo on Financial Security 2000. (This memo has been submitted to the NEC
but all of the proposals it describes may not be approved. However, it contains
language on improving the financial security of Americans that you may find
useful.)
Please let us know if you need any additional information.
�Secretary Rubin Remarks Before the National Foreign Trade Council
http://www.ustreas.gov/press/releases/pr2S46.htm
^ < TREASURY NEWS
FROM THE OFFICE OF PUBLIC AFFAIRS
FOR IMMEDIATE RELEASE
Remarks as prepared for delivery
December 7,1998
RR-2846
TREASURY SECRETARY ROBERT E. RUBIN
REMARKS BEFORE THE NATIONAL FOREIGN TRADE COUNCIL
NEW YORK, NEW YORK
It is a pleasure to be with you this evening. Let me begin by thanking the National Foreign Trade
Council for inviting me. Tonight I would like to speak with you about the importance for the economic
well being of all nations, including the United States, of remaining open and engaged in the global
economy, despite increased suggestions to do otherwise in response to the economic disruption over the
last year and a half. And, I will also speak about the imperative to build and strengthen public support
for that economic philosophy of openness and engagement, in the face of this increased opposition.
Let us first spend a moment on the crisis itself. Thefinancialcrisis of the last 18 months has often been
referred to as in some ways the most significantfinancialcrisis of the last 50 years. It has presented
enormous challenges to the international community, and just as the problems that gave rise to the crisis
took years to develop, re-establishing financial stability and growth in the affected nations will also take
time and much effort. While interest rates have fallen and currencies strengthened in Korea and
Thailand, nations that have taken ownership of reform, these nations still face enormous challenges
ahead. And the nations that have failed take ownership of reform face severe difficulties.
More broadly, there have been a number of significant positive developments over the last few months.
For example, the Japanese have passed important banking legislation to provide over $500 billion in
public funds for its banking sector, though effective implementation of that legislation still lies ahead,
the U.S. Congress approved funding for the International Monetary Fund, .and there has been a greater
emphasis by the developed nations on promoting their own growth.
In recent months, as a result of the massive disruptions that have occurred, voices around the globe
opposed to globalization and open markets have grown louder. Recently a developing country finance
minister who is committed to open markets told me of the greatly increased pressure in his country for
restrictions on both trade inflows and capital outflows. And, in the G-7 industrialized countries we are
seeing similar calls. In the United States, as our trade deficitrisesas a result of declining exports to Asia
and increasing imports, there are increased expressions of concern about the openness of our markets,
despite our healthy economy, remarkably low unemployment, and rising wages.
During the 26 years I spent on Wall Street and the 6 years in the Administration, I witnessed great
movement - just as many of you have over this period ~ toward a global consensus on market based
policies and integration with the global economy as the best path toward prosperity. That consensus is
now being more forcefully challenged. Having said that, I don't think there is any question that a market
based system and global integration is the best avenue for prosperity. It has produced enormous benefits
for vast numbers of people around the globe, even after taking into account the current crisis.
Many Asian nations - like the Phillippines, Korea, Thailand, Singapore, and the list goes on and on ~
have had twenty to thirty years of strong growth, lifting millions from poverty, in part by greater
opening to the rest of the world for trade and investment. That notwithstanding, many people are
suffering terribly as a result of this crisis, and it is imperative that the international community and the
affected nations focus on strengthening social safety nets as a component of buildintz a market based
�Secretary Rubin Remarks Before the National Foreign Trade Council
http://www.ustreas.gov/press/releases/pr2846.htm
system. But developing nations around the globe have prospered by embracing the market system,
engaging in trade, and attracting private sector capital - and their long term economic growth depends
on them continuing to do so.
Here in the United States, we, too, have greatly benefittedfromthe development of the global economy
through expanded trade and investment with the rest of the world. Expanding exports is critically
important to our nation's prosperity, but less widely recognized is that imports, too, contribute greatly to
our economic well being. Americans, as consumers, benefitfromthe lower prices and wider choice
which imports provide; American producers similarly benefitfromlower costs and wider choice for
inputs; and productivity is enhanced through greater competition. Moreover, trade is not a zero sum
game. The whole world benefits when each country produces the goods and services where its
comparative advantage is greatest.
The United States has over the last six years enjoyed its best economic conditions in a long, long time:
strong growth, low inflation, unemployment now at 4-1/2 percent, andrisingreal wages at all income
levels. There is no doubt in my view that our open markets have contributed substantially to these
economic conditions, and, while not dispositive, it is interesting to compare our economic performance
of the last six years with the economic performance of other industrialized nations that are less open.
Trade restrictions result in higher prices and less efficiency.
But we must also recognize that trade, like technological development and all change, also produces
dislocations, and it is essential to have strong programs to help those who are dislocated successfully
re-enter the economy as rapidly as possible, both to minimize the human and economic costs and also to
help sustain political support for open markets. We must also insist that trade not only be open but fair,
to make the system work best for all nations. And, when this does not obtain, we must vigorously
enforce our trade laws.
While the market system does offer the best path to economic well being for a nation, and the global
economy, it is clear that the global financial crisis has provided far more political room for opposing
voices. Against that backdrop, let me offer three suggestions for strengthening the market system and,
strengthening public and political support for that system.
First, we must substantially improve the architecture of the international financial system to better
prevent crises in the future, or better manage them when they do occur. That process began several years
ago, and has greatly intensified since the current crisis began. However, many of these issues are
extremely complex — for example, how to accomplish appropriate private sector burden sharing when a
crisis occurs ~ and the thinking, the development of international consensus, and the implementation on
the large host of issues involved will be going on for a long time to come.
Second, we must greatly broaden participation amongst the people in all of our nations in the benefits of
the global economy. That is a complex subject unto itself, in both developing and industrial nations, and
involves education and the other requisites for success in that global economy; appropriate social safety
nets; workersrights;and the list goes on. But, this is not only therightthing to do economically, it is
absolutely requisite to building and maintaining public support for open markets that the great
preponderance of our people feel that the global economy works in their interest.
Third,, and finally, we need to greatly increase understanding here at home of the importance of
American leadership on the issues of the global economy to our economic well being, and of the
importance of trade-exports and imports - to our economic well being. Although the Congress finally
approved IMF funding this fall, we are still the only major nation in arrears to the United Nations, and
we lack fast track authority to negotiate new trade agreements, even though expanding trade is very
much in our interest. After almost six years in government. I have become deeply concerned that public
support for forward-looking international economic policies may be waning at a time when our country's
economic, national security and geopolitical interests require just the opposite.
There needs to be a redoubled effort by all of us - public sector officials, the business community,
foreign policy experts - to communicate with the American public about the dynamics of the new global
�= Secretary Rubin Remarks Before the National Foreign Trade Council
http://www.ustreas.gov/press/releases/pr2846.htm
economy, and the importance to our economy of trade, open markets, and leadership on issues like
dealing withfinancialcrisis abroad and promoting growth in'developing nations. Unless there is broad
public understanding of these matters, we risk moving backward, with potentially serious economic and
national security consequences.
The National Foreign Trade Council, and its members, have been a strong and important voice in a
number of debates related to international economics: approval of the IMF funding, the use of unilateral
trade sanctions, and a host of other important international economic issues. But in the world today, your
active participation has never been more needed — as individuals, in the businesses andfirmsfor which
you work, and as an organization — in developing public support for forward looking economic policy.
The history of this century has clearly demonstrated the folly of our turning inward. Let us work together
so that we do not turn inward, but instead realize the opportunities of the global economy to the benefit
of all our people. Thank you very much. .
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�Language on Democratization of Capital in the U.S.
Unleashing the buried talent and productive capacity of these areas is not just a moral necessity
but an economic one. Our country has to worry about emerging markets. But none are more
important than the emerging markets within our own borders. In the Clinton Administration we
know that a more inclusive America will be a richer, more productive America. We know that a
concern about the future of our economy mandates a concern about the future of our inner cities
and other disadvantaged communities. And we know that finance is a key tool for achieving that
goal.
The world over, privatefinancialmarkets fail when it comes to very poor. You could say that
mainstream banks do not seek out poor communities ~ because that is not where the money is.
Market psychology and other barriers tend artificially to restrict the flow of capital to certain
neighborhoods or to minority groups, creating clear market failures. Yet if you deprive the people
of these districts of the chance to lend or save and they are a good deal more likely to stay that
way. The First Lady likes to say it takes a village to raise a child. Equally it takes capital to build
a successful village.
That is why, since the earliest days of this Administration we have been working ~ domestically
and internationally — to democratize the access to capital. That is why we successfully defended
and revitalized the Community Reinvestment Act. That is why we created the Community
Development Financial Institutions Fund, a network offinancialservice institutions to expand
access to credit and financial services in lower income urban, rural and Native American
communities. And that is why we have introduced tax incentives to revive the power of the
market for low-income families and communities. As a result of all these efforts ~ more
investment than ever is flowing into communities and making a difference in the lives of low
income families.
�SUGGESTED PARAGRAPH ON IRS FOR STATE OF UNION ADDRESS: DRAFT
We are working to renew Americans' faith in our government to provide the services they
deserve and need - and the government's duty to treat them with fairness and respect.
At the Internal Revenue Service we are working to create an agency that provides quality
customer service and respects our fellow Americans who play by the rules and pay their taxes.
Whether it's expanded phone service, more convenient walk-in hours, or filing taxes with the
click of a mouse or by picking up the phone, we're committed to providing more and better
customer service to the American taxpayer. So far we've eliminated 22 million computer
generated notices and reduced busy signals on the help-line by 44 million in the last year. We
rang in the new year with 24-hour-a-day/7-day-a-week phone service, expanded walk-in hours,
and Saturday service at over 170 sites for the six Saturdays leading up to April 15 . In addition,
the recent legislation to reform the IRS gives taxpayers morerightsthan they ever had before.
There is still room for improvement but we are starting to show that the IRS can give the
American taxpayer the service they want and deserve.
th
�THE SOUTHWEST BORDER REGION
Executive Summary
The focus of this analysis is the fifty-six-county region contiguous with the United
States' southwestern border with Mexico. While important differences exist among the
counties within this area, they also share a number of common features that substantially
differentiate the Border region from the rest of the United States.
The population in the Border region is growing twice as fast and is generally much
younger and more heavily Hispanic than is typical throughout the United States.
A higher concentration of this region's residents are foreign-born compared to the
entire country and more of this region's residents speak Spanish at home than in the
United States as a whole.
Unemployment is higher in the Border region than in all but two states and a
disproportionately large share of this region's residents are living in poverty compared
to the entire country.
Per capita personal income in the Border region lags that of the United States by
more than 10 percent and average annual pay in the manufacturing sector, which
usually exceeds the average compensation paid by other industries, is actually
2 percent below the very low average yearly pay in all of this region's private industries.
combined.
Rates of educational attainment are alarmingly low ip the Border region - close to
one-quarter of the adult population has not graduated from high school.
Based on measures of unemployment and poverty, fifty-three counties* in the
Border region were categorized as "troubled". The gap between the Border and
the United States is even wider for this subset.
The immediate outlook for the Border region is not favorable, given the pervasiveness
of poverty, general lack of formal education, and rapid pace at which the youngest and oldest
segments of the Border's population is expanding. All of these factors are likely to place
additional strain on government resources in the near future. The relatively low level of
economic development that has occurred in this region also has serious implications for the
law enforcement community, as a significant relationship has been shown to exist between
economic condition and crime. Unless adequate steps are taken to alleviate the economic
distress from which this region currently suffers, the Border will likely continue to pose
significant enforcement resource issues for the government.
Novembers, 1998
Three counties - Orange County (CA), San Diego County (CA), and McMullen County (TX) were excluded based on the following economic criteria: the unemployment rate in 1997 was below the
�Youth Crime Gun Interdiction Initiative (YCGII): In July 1996, the President
announced the creation of the YCGII, to be led by the Treasury's Bureau of Alcohol,
Tobacco, and Firearms. The YCGII is designed to prevent illegal access tofirearmsby
juveniles. Under this program, all recovered crime gunsfrom27 targeted cities are traced
by the ATF. Datafromthe crime gun traces is given to State and local law enforcement
for use in building cases and securing convictions against gun traffickers. Analysis of the
data is used to identify broad gun trafficking patterns and to identify strategies to prevent
illegal access to firearms by juveniles and others. In February 1999, ATF will publish its
1998 annual analysis of crime gun trace information. The report includes such
information as the number of crime guns recovered in each participating city, the type of
gun used in a crime, the "time-to-crime" offrequentlyused gun models, and the source
states of crime guns.
Gun Show Report: In October 1998, the President instructed the Secretary of Treasury,
Attorney General, and Director of the ATF to review the laws and regulations regarding
the sale of firearms at gun shows. In particular, the involved offices were directed to
examine possible sales offirearmsto persons prohibited by lawfromfirearmspurchase.
A report on the finding of the study and policy recommendations is scheduled for
completion in January.
�FINANCIAL SECURITY 2000
Executive Summary
Technology, innovation, competition, and rising incomes and wealth are enriching the array of
financial services and products available to most Americans. But these new opportunities to
build financial security are making financial planning more complex, and have created new risks
of privacy violations,fraud,and misleading offers. As a result, many consumers are not
enjoying the full opportunities for financial security that these products and services can provide.
Set forth below are the newrightsand tools that consumers must have to use the financial system
of 2000 effectively. The Administration proposals: (.1) expand access tofinancialservices; (2)
protect consumer privacy infinancialtransactions; (3) combatfraudagainst consumers; (4)
require expanded disclosures of information to consumers; and (5) improve consumer education
for effectivefinancialplanning.
Proposals
Expand access to financial services
•
Expand the availability of low-cost, electronic banking accounts (ETAs), so that all
Americans can have a safe and sound place to deposit and save their money.
•
Install ATMs in post offices in low-income areas, so that all neighborhoods can have access
to the benefits of electronic banking.
•
Expand use of individual deposit accounts (IDAs) that provide a means for low-income
households to save not just for retirement but also for education, business investment, or
emergencies.
•
[Expand the availability of payroll deductions for retirement savings, to make it easier for all
Americans to save for their retirement.]
Protect consumer privacy
•
Prohibit sharing of medical information, as from health or life insurance policies, within
financial services companies.
•
Expand protection an individuaFs credit record under the Fair Credit Reporting Act (FCRA).
•
Require notice and opt-out choice for a customer before a bank can share transaction
information with a third party.
•
Give bank regulators authority to issue enforceable rules under FCRA.
•
Give bank regulators broader authority to examine bank compliance with FCRA.
�•
[Fund FTC internet privacy initiative.]
Combat fraud against consumers
•
Implement new Treasury regulations to guard against and punish identity theft. [Insert from
Treasury/ Enforcement.]
•
Support Leach bill on pretext calling, so that FTC can sanction private investigators and data
brokers who trick confidential customer information out of banks.
•
Impose limits on liability as with credit cards for non-PIN protected debit cards, which look
like credit cards but potentially expose the holder to greaterriskof loss.
•
Prohibit unsolicited mailing of loan checks - which a consumer (or someone else who
obtains the check) can cash simply by signing - to the same extent as unsolicited mailing of
credit cards.
•
[Enhance supervision and regulation of independent investment advisors, who can perform
most of the same functions as stock brokers but are not subject to the same consumer
protections.]
•
Work with the states to establish standards for "fringe" banks.
Require expanded disclosures of information to consumers
•
Require additional, clear and conspicuous monthly disclosures about the terms and
implications of credit card debt, including: how long and how costly repayment would be if
the consumer makes only the minimum payment, and clear notice of how long until any
"teaser" or discount interest rate expires.
1
•
Require notification that a new extension of credit may not be appropriate for a consumer's
financial needs, [and provide a simple worksheet to assist the consumer in determining how
to use his/her credit appropriately.]
•
Provide enforcement "teeth" for bank sales practice guidelines - e.g., require by enforceable
regulation that banks disclose that non-deposit products aren't federally insured.
•
Require rent-to-own companies to make basic disclosures: whether a product is new or used,
what the products total cost would be under the contract, and possibly additional disclosures
based on an FTC study nearing completion.
�•
[Require disclosure of mutual fund gross earnings and all fees, in addition to disclosure of net
earnings. (Disclosure of tax implications?)]
1
•
Require ATM owners to post any surcharge both on the machine and on-screen.
•
Require new disclosures on high loan-to-value second mortgages, such as: total loan
payments including all fees, theriskof home foreclosure if payments are not made, and the
non-deductibility of interest payments on loans greater than the value of the home. [FTC? to
add text.]
•
[Create database of information on banking fees for easy comparison of products.]
•
Develop voluntary or mandatory standards and disclosures of interests for debtor counseling
services. [Executive Office of US Bankruptcy Trustees]
Improve consumer education for effectivefinancialplanning
•
Promote financial planning in high school education, by making personal finance^ priority
topic in the Department of Education's incentive grant program for curriculum development
($200M budgeted for overall incentive grant program in FYOO).
•
Provide opportunities for low-income rural Americans to obtain tools for effective financial
planning, through continuation or expansion of the Department of Agriculture's Extension
courses and development informational resources on personalfinancetopics.
•
Providefinancialplanning education for Americans in low-income urban areas, through
continued funding of thefinancialinformation and education network developed in
Treasury's EFT 99 initiative.
•
Continue or expand availability of Department of Defense programs for personal finance
education and counseling in basic training, family centers, and youth programs.
•
Provide information on opportunities and methods for retirement savings through
Department of Labor and Administration on Aging programs, funded through Savers Act.
•
Establish government clearinghouse on financial planning that builds on resources available
in each agency and through Federal-private partnerships.
1
On mutual fund disclosures and regulation of investment advisors, Treasury will be meeting
with the head of NASDR on 1/5/99. NASDR has indicated interest in both.
�Publicize recent regulations affecting identity theft, and opportunities for consumers to
reduce privacy andfraudrisks.[Enforcement, FTC insert]
Highlight FTC Consumer Week in 2/99, which is focusing on creditfraudprotection, through
a Presidential proclamation and Administration participation in Consumer Week events.
�Analysis of Proposals
Most of these proposals have no budgetary cost, or already have some FYOO funding in
Departmental budgets. The total additional cost of all the proposals is around $25 million.
Expand access tofinancialservices
While more Americans than ever are using an increasingly broad array offinancialservices,
some Americans remain unfamiliar with important opportunities to save or invest or do not have
easy access to low-cost vehicles for doing so. Our proposals target two critical gaps. First, some
Americans have been left out of the dramatic changes infinancialservices entirely ~ over ten
percent of Americans do not have a bank account. Second, even though the number of
Americans who are investing for retirement savings is growing rapidly, evidence suggests that
many households are saving less than appears optimal, not only for retirement but to provide a
means of improving their long-term financial security (e.g., buying a home, starting a business,
or providing a "buffer" against adversefinancialevents). More than half of households,
including some with high incomes, have less than $2000 of liquidfinancialassets. Because an
increasing share of households also have rising levels of consumer debt, they have no financial
buffer in the event of a job loss, illness, or other major expense ~ possibly contributing to the
rise in personal bankruptcies and default rates during the past decade. Studies have shown that
the availability of retirement savings opportunities significantly influences savings rates.
Expand availability of basic financial services using EFT '99. Treasury's EFT'99 initiative
has taken important steps toward reaching the "unbanked" and bringing them into the modem
financial services sector. Treasury has sought comment on a basic electronic transfer account
(ETA) ~ an account for the deposit of federal benefits ~ and optional features that hold the
promise of bringing low-income federal beneficiaries into the economic mainstream. These
optional features include paying interest on deposits, accepting other deposits, and making
third-party bill payments. Continuing the initiative would further expand the availability of
financial services for recipients of Federal benefits. Budgetary cost.
[Expand EFT'99 bevond the federal benefit population. As an initial matter, Treasury's
program may increase competitive pressures on financial institutions to offer these innovative
products more broadly. Treasury could also consider reimbursing financial institutions
offering these kinds of accounts more broadly to low income consumers. This could be done,
in combination with EFT '99, by using the CDFI Fund's CDFI and BEA awards and by
asking the banking regulators to give favorable CRA consideration for financial institutions
providing ETAs. Budgetary cost.]
Install ATMs at post offices in underserved low-income areas. Initiatives to expand modem
electronicfinanceto include all Americans will succeed only if customers can access their
money. But there is often an acute shortage of ATMs in inner city and depressed rural areas.
�The U.S. Postal Service is working with Treasury to install private ATMs, on a pilot basis, at
nine locations in West Baltimore. This pilot project could be accelerated and expanded to
include many locations throughout the country.
•
Encourage low-income persons to save through Individual Development Accounts.
Individual Development Accounts (IDAs) are designed to encourage low income savings for
investments such as starting a micro-business, saving for post-secondary education and
training, buying a first home, or providing financial security against adverse events.
Congress recently enacted the Assets for Independence Act, a four-year demonstration
program to be administered by HHS, and provided $10 million in FY 1999 funding to begin
the pilot. This pilot could be expanded (budgetary cost), or coordinated with other
Administration initiatives to provide consumers with better tools forfinancialplanning (see
below).
•
Expanded Access to Payroll Deduction for Retirement Saving. Employers would be
encouraged to offer employees payroll deduction contributions to IRAs. Contributions of up
to $2,000 to an IRA through payroll deduction generally would be excludedfroman
employee's income, and, accordingly, would not be reported as income on the employee's
Form W-2. Some employees would be able to use simpler tax forms. Like regular IRA
contributions, the amounts would be subject to employment taxes. They would be reported
as a contribution to an IRA on the employee's Form W-2. In the event the amounts would
not have been deductible had the employee contributed directly to an IRA, the employee
would be required to include the amounts in income on the employee's tax return. Budgetary
cost? [Tax Policy]
Protect consumer privacy
Americans consistently express concerns about their privacy, especially theirfinancialand
medical privacy, as electronic data systems continue to expand. Particularly sensitive topics
include the use of medical information, and the sale or sharing of transaction information from
financial accounts with third parties.
•
Prohibit sharing of medical information withinfinancialservices companies. Federal law
currently contains no restrictions on such data-sharing practices as a health or life insurance
company providing a customer's medical examination to an affiliated lender. Citigroup
recently agreed to hold such information confidential, thereby demonstrating the feasibility of
restrictions on medical data sharing. State law already imposes similar requirements.
•
Expand protection of an individual's credit record under the Fair Credit Reporting Act
fFCRA). The FCRA governs use of "credit reports"-- profiles of a customer's credit history
that are now not only used by lenders but also used by potential employers, insurance
companies, and rental agents. Current law imposes restrictions on banks that report
information to a credit agency but exempts from regulation a bank's sharing of''experience'*
�and "transactional" information with affiliates or non-credit agency third parties. Other
information can be shared with affiliates but only if the customer is given an opt out.
•
•
Give bank regulators authority to issue enforceable rules under the FCRA. Currently,
the Fed (only) is authorized to issue only "interpretations," and does so slowly. Thus,
there are no definitive rules on when an opt out notice is sufficient, or what
"experience" information is.
•
•
Amend FCRA to allow customers to opt out of sharing confidential personal banking
information with a third party. The banks claim that they do not sell confidential
information to third parties, and this restriction would take them at their word.
Give bank regulators authority to examine for compliance. As part of the
compromise on FCRA amendments in 1996, the banking industry "won" a
prohibition on its regulators examining for FCRA compliance absent a complaint or
other indication of noncompliance. The industry argued that credit reporting
agencies themselves are not subject to examination, and that any errors can be
corrected when the customer obtains access to the credit report. This decision could
be reversed.
[Money for FTC for internet privacy initiative.]
Combat fraud against consumers
The increased availability of sensitive, personal information on-line has created new
opportunities forfraud,and thus a new need for government action to guard against fraudulent
use of sensitive information.
•
Implement Treasury initiative on identify theft. [Insert from enforcement.]
•
Combat pretext calling by supporting Leach bill. Chairman Leach last year introduced a bill
to restrict pretext calling, where private investigators or data brokers trick customer
information out of banks — e.g., by pretending to be the customer. The bill would allow the
FTC to impose sanctions on those who commit pretext calls. It would have been enacted by
acclamation, but time ran out.
•
Extend consumer protections against theft andfraudwith credit cards to debit cards. At
present, losses on credit cards are limited by federal law, and losses on an ATM card (while
not legally limited) are prevented by security features (PINS). Debit cards carry neither legal
protectors nor security protectors loss. Although VISA and Mastercard have voluntarily
extended strong protections ~ beyond what has been contemplated legislatively, for example
in the Schumer-Gonzales bill - this area is rapidly changing and it may make sense to enact
certain basic protections that any future issuer will have to provide.
�•
Prohibit unsolicited mailing of loan checks. Long prohibitedfrommailing unsolicited credit
cards, some banks now mail "loan checks" that need only be endorsed by the recipient to be
converted into cash (and thereby creating a new debt burden for the recipient). Concerns here
include the potential for consumer inconvenience and reputational harm if the loan check is
stolen, paternalism to the extent that customers are quickly indebting themselves without
adequate information on the terms and implications of the debt, and privacy (therightnot to
have checks made out to you floating around). Put another way, unintended recipients of
loan checks may (rightly) feel the need to destroy them in a way that is unnecessary with
other junk mail, and this is an unjustified intrusion, and inconvenience.
•
[Enhance supervision and regulation of independent investment advisors. Press accounts and
NASD staff have identified significant problems in the regulation of the nation's independent
investment advisors - now over 11,000 and growing. These advisors ~ also known as
financial planners — are responsible for managing over $6 trillion of customer assets. Yet
they escape SEC/NASD registration as stock brokers by dealing primarily in mutual funds
and exploiting other loopholes. Thus, while they serve a role often indistinguishable from
that of registered representatives, their customers do not enjoy nearly the same protections or
rights. Treasury is meeting with the head of NASDR thefirstweek of January to discuss
possible initiatives to provide consumer protections analogous to those for registered
representatives. Budgetary cost.'
•
Fringe banks
Require expanded disclosure of information to consumers
•
Additional monthly/regular disclosures on credit cards. Current TILA rules require credit
card companies to disclose prominently a consumer's balance, currentfinancecharges,
minimum monthly payment, and effective monthly interest rate. This information may not
give consumers a complete and forward-looking picture of the implications of their debt
burden; for example, making minimum payments on some credit cards will never pay off a
debt. In last year's bankruptcy reform debate, the Administration supported additional clear
and conspicuous monthly disclosures of the implications of making only the minimum
payment: how many months (if ever) it would take to pay off the debt, and what the total
(principal plus interest) payments would be. In addition, credit card companies might be
required to disclose regularly: (1) how much longer a "teaser" or discount interest rate will
remain operative (and what the subsequent rate will be) - consumer anger about this problem
accounts for the bulk of credit card-related complaints to the FTC; (2) if the creditor is taking
a secured interest in purchases, a disclosure the implications for delinquency and bankruptcy
(the debt is not dischargeable); and (3) how the consumer can obtain a low-cost copy of
his/her credit reports. Questions remain about whether such disclosures can be provided in
an effective, clear and conspicuous, and nonburdensome way; thus, the Administration might
�propose legislation for a Fed/Treasury study of the best approach to these new disclosure
requirements, to be followed by new TILA disclosure regulations as appropriate.
Require disclosures advising care in the use of new credit extensions. The disclosure would
state that, while the credit card company has evaluated a consumer's ability to repay, it has
not evaluated whether taking on any additional debt is in the consumer's financial interest.
This disclosure might be accompanied by the "Durbin worksheet," which consumers can use
to assess whether a credit extension is appropriate given theirfinancialcircumstances and
needs.
Convert bank sales practice guidelines into enforceable rules - e.g.. require bv rule that banks
disclose that non-deposit products aren't federally insured. The four federal banking
agencies have jointly adopted an Interagency Statement on Retail Sales of Non-deposit
Investment Products. The Statement does not have the force of law, yet is the only place in
federal regulation where an attempt is made to ensure that customers buying insurance or
securities products on bank premises understand that those products are not federally insured
or bank guaranteed.
Require basic rent-to-own disclosures. Propose authorizing the Fed to write appropriate
disclosure requirements for rent-to-own transactions. Pending release of an ongoing FTC
study, we would not wish to be too specific in stating what those disclosures are, but two are
fairly obvious: whether the item is new or used, and the total cost of purchasing the item.
(Calculating the implicit interest rate, or alternatively the equivalent purchase at a reasonable
interest rate that could befinancedby the total payments under the rent-to-own contract, gets
a little complicated and needs further study.)
[Disclosure of mutual fund fees. The fees associated with mutual funds are among the most
bewildering in thefinancialservices industry, and can have a dramatic effect on the return
earned on an investment. Yet consumers who carefully study the returns posted by funds
generally remain ignorant of how fees can make those returns illusory. The SEC and NASD
have begun to highlight and study this issue, and we will work with them in the coming
weeks to identify if there is an Administration role here. A proposed disclosure is
complicated by several factors, including: funds able to eam higher returns may incur higher
fees, so that the disclosure should highlight net returns; and it is unclear whether and how the
government should encourage disclosures that clarify tax implications, thereby reducing
revenues.]
2
On-screen and on-machine posting of ATM surcharges. Require the posting of ATM
surcharge fees both at the terminal by signage and on the screen of the terminal before a
2
On mutual fund disclosures and regulation of investment advisors, Treasury' will be meeting
with the head of NASDR on 1/5/98. NASDR has indicated interest in both.
�transaction is irrevocably made. Currently, only one or the other is required, through most
network rules require both.
•
New disclosures on high loan-to-value second mortgages. [FTC, Community Development.
AARP also feels strongly about this and could provide input.]
•
Develop voluntary or mandatory standards and disclosures of interests for debtor counseling
services. As consumer debt and delinquencies have increased, the debtor counseling industry
has grown as well. This diverse industry includes large non-profit organizations (many of
which are funded by creditors), large for-profit companies like Genus Credit Management,
and many small, sometimes less reputable companies. State regulation of the for-profit
counseling agencies is uneven, and only six states regulate nonprofits at all. With proposals
last year to include mandatory credit counseling as a condition for bankruptcy filing, the
Executive Office of the U.S. Bankruptcy Trustees began to evaluate proposals for the
development of standards or, at a minimum, consumer guidelines for this industry. Several
other financial education groups have also developed guides for consumers. This initiative
might support the development of a standardized description of services,-a checklist of
questions to help the consumer determine which approach to dealing with debt may be best
for her, and resource lists of "approved" counseling and debt assistance agencies in local
areas. Alternatively, voluntary standards could be developed, as the National Federation of
Credit Counselors has done. The development and enforcement of national standards,
perhaps in coordination with state regulatory authorities, would be very costly - but might be
feasible (or required) as part of a bankruptcy reform package. Alternatively, the
Administration could propose a study of options for improving the reliability of the credit
counseling industry. Budgetary cost.
•
[Create database of information on banking fees for easv comparison of products. Budgetary
cost. WE NEED TO DECIDE ON A PROCESS HERE.]
Improve consumer education for effective financial planning
This initiative proposes new disclosures and protections appropriate for our increasingly rich and
complexfinancialsystem. To use these opportunities effectively, consumers need tools for
interpretingfinancial,information and understanding their financial rights. Yet many Americans
do not have these tools:
•
Eighteen year-olds today receive many solicitations for credit cards and other types of credit
. and must make decisions with enormous and growing financial consequences - about
educational loans, purchases on credit, and putting aside savings for other important life
events like home purchases or increasingly costly medical treatments. Yet only a small
fraction of high school students receive any education about personal financial management
and planning" - a life skill that they now need as soon as they graduate.
10
�•
The need for additional skills to take advantage offinancialopportunities extends to adult
Americans. Consumer Federation surveys indicate that nearly 70% are confused at some
time about what they read and hear aboutfinancialopportunities, and only a third of
Americans feel "confident" about managing theirfinancialresources effectively.
•
Uncertainty about effectivefinancialplanning, along with the increasing complexity of our
financial system, often leads to problems in attainingfinancialsecurity. Two-thirds of
households with credit cards carry balances month to month, and around one in six carry
balances larger than several thousand dollars. Personal bankruptcy rates are at an all-time
high despite our expansive economy, and many consumers appear to be ill-prepared for such
adverse economic events as job losses or a major illness. Over half of Americans report they
are behind in meeting theirfinancialgoals.
•
Providing more Americans with the tools they need to develop afinancialplan would address
these problems. Individuals who have completedfinancialplanning programs in the
workplace (covering basic principles of borrowing and saving, the key components of a
financial plan, etc.) save more than twice as much as those who have not. Americans who
hadfinancialtraining in high school accumulate greater wealth - a full year's worth of
earnings - than those who did not. Developing long-rangefinancialplanning skills appears to
have other benefits, such as greater work productivity (more willing to invest in skill
development, better ability to plan complex tasks).
These proposals will help consumers take advantage of therightsand opportunities provided by
the other components of Financial Security 2000, and will complement other Administration
initiatives to help Americans build critical life skills through training and other lifelong learning
programs, basic literacy programs, and public health and nutrition education.
•
Promote financial planning in high school education. The Department of Education will
include financial planning as a priority topic in its incentive grant program for curriculum
development (overall budget of $200M). Public and private groups have developed and
evaluated personal finance modules for inclusion in math, social science, and other standard
courses; some districts have already adopted these curricula. This proposal would provide
additional Federal encouragement for personalfinanceeducation in high school. Existing
budgetary authority.
•
Provide opportunities for low-income rural Americans to obtainfinancialplanning skills.
This proposal continues several initiatives sponsored by the Cooperative State Research,
Education, and Extension Service (CSREES) of the U.S. Department of Agriculture.
CSREES now sponsors training programs for rural educators, local mini-conferences and
seminars onfinancialplanning, high school education through 4-H programs, and the
development and dissemination of a range of financial education materials for lower-income
households. One particularly noteworthy education/.outreach program is Money 2000, which
encourages participating households to save $2000 by 2000. Additional funding would
11
�support the development of additional educational modules and programs, and possibly seed
grants or matching grants for USD A partnerships in expanding the availability of financial
education in rural areas. Budgetary cost if program expanded.
Provide financial planning education for Americans in low-income urban areas. Treasury' s
EFT99 initiative has developed a national network of Treasury staff, contracted public
relations staff, and community-based organizations to conduct "in-touch" training on the use
of low-cost savings accounts for unbanked federal check recipients. This network would be
expanded to include basic financial literacy for low-income individuals ~ through direct
education, train-the-trainer seminars, and distribution of educational materials on personal
financial management. Topics include family budgeting, value of savings, wise use of credit,
and the characteristics of various low-cost financial products including new Electronic
Transfer Accounts. Budgetary cost.
Continue or expand Department of Defense programs for personalfinanceeducation and
counseling. In response to evidence offinancialplanning problems similar to those in
civilian society - especially among young military families - DoD has initiated and expanded
a range of educational and counseling programs to help its personnel and their families
develop effectivefinancialplans. DoD initiatives include outreach or "marketing" programs
(so that personnel will be aware of available educational resources), expanding the
availability of an 11-module CD on personalfinancialmanagement, increasing the
availability of internet training programs (which are accessible by military personnel
throughout the world), and conducting an evaluation program to confirm the apparent effects
of these programs on reducing emergency loans,financialdefaults, bankruptcies, and
command time spent on consumer counseling. DoD is also developing educational programs
for children of military personnel, who are very likely to join the military. Limited budgetary
cost - most programs in existing DoD budget.
Provide information on opportunities and methods for retirement savings through Savers Act
programs in the Department of Labor and Administration on Aging. The Saver Act of 1997
requires the Department of Labor to provide information on retirement savings. One
component of this initiative is a DoL website, which will be linked to the American Savings
Education Council (ASEC) site and other Federal and nonprofit sites with reliable
information about retirement savings. Another major component is outreach, including the
production of a set of public service announcements ("Are You Saving for Retirement?") and
advertising targeted to groups with low savings rates, including minority groups. A third
component is the development and dissemination of short, readable documents on the
importance of retirement savings, available vehicles for savings (including pensions and taxfavored savings), and strategies for achieving retirement savings goals. The Savers Act
provides statutory funding for the development and dissemination of information on
retirement savings through the Retirement Savings Campaign; limited additional funding
would allow this initiative to be incorporated in the other Administrationfinancialplanning
efforts. The Administration on Aging in the Department of Health and Human Sen- ices
12
�sponsors employee training and education programs focusing on the impact of longevity and
out-of-pocket medical costs onfinancialsecurity in retirement, through state and local AoA
offices and in collaboration with private organizations. Limited budgetary cost.
Create a government clearinghouse onfinancialplanning resources. This proposal would
fund a "one-stop" clearinghouse onfinancialplanning resources that have been supported
fully or in part through Federal initiatives. It would include a web site would link and
coordinate many Departmental web resources related to personalfinance~ including DoL's
site on retirement savings, AOA's site on how to plan forfinancialsecurity in retirement,
FTC's web resources on consumerfinancialrights,DoD's and USDA's electronic courses on
personalfinancialmanagement, the Fed's and SEC's information onfinancialplanning, and
Treasury's educational materials aboutfiraudandfinancialprivacy. It would also provide
links to resources developed through such public-private efforts as the ASEC savings
initiative and the SEC/CFA investment education initiative. The clearinghouse would also
help direct consumers to appropriate information and publications onfinancialmanagement
topics, and provide a mechanism for the diverse initiatives to share information and
resources. Budgetary cost.
Publicize recent regulations to crack down on identity theft, and opportunities for consumers
to reduce privacy andfraudrisks.[Treasury/Enforcement, FTC insert. Budgetary cost?]
Administration co-sponsorship of Consumer Week 1999 programs on consumerfraud.The
FTC sponsors Consumer Week in early February, an annual set of activities and events
around a single consumer theme. This year's topic is creditfraud,and it will feature public
education events sponsored by government, nonprofit, and private industry groups.
13
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Tanya E. Martin
12/21/98 05:45:36 PM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Teacher Quality
Teacher quality stuff. I don't have any great data on removing incompetent teachers from the
classroom. I've asked folks to take another stab at getting more teacher quality data.
The sourcing is all abbreviated - but I'll get staff at Education to provide non-abbreviated report
names later. I thought getting the data to you today was better than waiting to un-abbreviated
sources.
* 2 8 % of secondary teachers do not have at least a minor in their main assignment field. (NCES,)
* 4 3 states require a basic skills exam for beginning teachers - NASDTEC manual
* 3 2 states require a subject matter exam for beginning teachers. - NASDTEC manual
* 2 5 states require a teaching knowledge exam (i.e. teaching pedagogy) for beginning teachers. NASDTEC manual.
* 7 states do not require student teaching; and35 states require less than 12 weeks of student
teaching. (NCTAF report 1996)
*Since 1985 when the first alternative teacher certification program in NJ licensed its first
candidates, the number of individuals certified through alternative routes has g r o w n rapidly. In
1 9 9 7 , 41 states and DC reported more than 7 5 , 0 0 0 people have been licensed to teach through
alternative routes. (NCIE)
* 2 3 states and DC have designed alternative licensure programs explicitly for bringing talented
individuals w i t h at least a bachelor's degree into teaching. This compares w i t h 11 such programs
in 1 9 9 1 . (NCIE)
* T X , FL and NY hold institutions of higher education accountable for teacher training by requiring
that 7 0 - 8 0 % of the graduates of a school of education pass the state teacher exam.
•Nation's schools will need to hire 2.2 million teachers in the next ten years. Approximately 1/2 to
2/3 of those 2.2 million teachers will be first-time teachers. (NCES)
�:
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Tanya E. Martin
12/21/98 05:24:06 PM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Making Academics Count
More on Making Academics Count. Leading Companies/CEOs in this effort include IBM/Lou
Gerstner, DuPont, Bell South, -- efforts underway w / hundreds of businesses in Delaware, Orange
County CA, New Jersey, Kentucky, and Maine. I'll fax over some more information.
Making Academics Count is one part of the National Alliance of Business, The Business
Roundtable and the U.S. Chamber of Commerce's Common Agenda for Improving American
Education. The three organizations are working together to change company practices in order to
increase student achievement. Every employer can send a clear message to students, "yes, school
counts," by asking for school records in the hiring process.
In summer 1 9 9 7 , the Business Coalition for Education Reform (BCER: a
partnership between NAB, BRT, the U.S. Chamber and nine other
business groups) kicked off a two-year nationwide effort to reinforce the
connection between school performance and workplace success. The
goal: to have at least 1 0 , 0 0 0 companies of all sizes asking for school
records and other profiles of academic performance as part of their hiring
practices. NAB is providing tools and assistance to business leaders,
educators and other members of the community to help them in this effort.
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12/21/98 05:26:50 PM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Education - Social Promotion Facts
Unless stated otherwise, these should be sourced to the US Dept of Education ( from a draft
publication that they are putting together on social promotions). If you decide to use any of these
facts, let me know and I'll get more specific sourcing for you.
•Recent survey shows that 3 2 % of parents, 6 3 % of employers, and 2 6 % of teachers do not
believe that a high school diploma is a guarantee that students have mastered the basics. (Public
Agenda, January 1 9 9 8 ) .
* l n 1 9 9 8 , 4 states (CA, DE, SC, Wl) passed laws to curtail social promotions by tying promotion
policies to state assessment results.
*Cost of social promotion extend to scoiety as a whole.
According to the National Center for
Education Statitics, about one in three incoming college freshman in 1996 had to take a remedial
course. Recent study by Brookings institution estimates that the total cost of providing remedial
instruction to incoming freshman nationwide is $1 billion,
(note w i t h that same $1 billion could
have had enough money to provide ALL of the incoming freshman in this country -- approx 2 million
of them - w i t h $ 5 0 0 for books and expenses.)
*Cal State University system reports that 5 4 % of incoming freshman have to take remedial math.
Almost half need remedial reading.
* l n 22 states, students must pass an exit exam before they can receive a high school diploma
* A t least 32 states and 34 urban districts now have accountability systems that provide rewards or
sanctions for schools that are based, at least in part, on test scores.
•Recently Chicago, Washington DC, Tacoma (WA), Philadelphia, Cincinnati, and New york City and
states such as Florida, Texas and Oregon have stepped up their efforts to end social promotion.
�' /j?
Clara J. Shin
12/21/98 07:13:18 PM
Record Type:
To:
Record
Michael Waldman/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject:
In the search for SOTU facts, one provided by Secretary Togo West: 41 million veterans since
1 7 7 6 ; more than 1/2 are alive today.
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MEMORANDUM FOR MARIA ECHAVESTE
MICHAEL WALDMAN
FROM:
Clara Shin
SUBJECT:
State of the Union: Cabinet Secretaries
DATE:
December 2 1 , 1998
As you know, many individuals have expressed support for a State of the Union
address in which the President focuses on themes rather than recite a litany of policy
initiatives. All of the Cabinet Secretaries with whom we have met thus far have echoed
this sentiment and have recommended some themes the President might discuss. In this
memo, I have outlined these themes or issues and as illustrations, related them to specific
policy initiatives.
1. Clinton Legacy
Each Secretary with whom we met emphasized the importance of the President
discussing his achievements as a means of defining his legacy. In this regard, Secretary
Daley stated that the 1999 address is the President's last opportunity to do a "big picture"
accounting and thus, should devote at least half of the speech to describing this
administration's achievements. One such achievement, according to Secretary Rubin, is
this Clinton Administration's success in developing a global economy through expanded
trade and investment with the rest of the world; specific benefits of this global economy
include strong g r o w t h , low inflation, unemployment at 4 /2 percent, and rising real wages at
all income levels.
1
2. 21st Century/Framework of the Future
In addition to discussing the Clinton legacy, many of the Secretaries urged the
President to articulate a forward-looking framework based on the achievements accrued
over the last six years. In doing so, the Secretaries emphasized President Clinton's role as
a 21st century leader as well as the importance of anticipating and responding to 21st
century issues. For one, Deputy Secretary Summers pointed to the need for American
participation in the global economy in strengthening our economic well-being and thus,
recommended that the President galvanize public support for forward-looking international
economic policies. For another, Secretary Shalala called for the President to lay the
groundwork so that he can cite as his legacies safer and healthier American kids, a
restructured health system, and work that pays. Also, in articulating the challenges of the
21st century, Secretary Herman cited the need for this Administration to achieve a
prepared, secure, and quality workplace.
"Page f
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3. Community
The Secretaries heralded community as a theme. For instance, Secretary Reno
discussed the critical role of communities in ensuring that young people are safe and have
the health care, supervision, and education necessary to become law-abiding and
productive adults {via the Building Blocks for Strong and Health Children initiative). In the
international realm, Secretary Rubin spoke of community in the context of the global
economy and articulated the need for the international community to strengthen the global
safety net as an integral component of building a market-based system; in short, the United
States engaging in expanded trade and investment with the rest of the world. Treasury
also discussed the dynamic of the United States taking a leadership role in developing a
market-based economy with a strong public foundation, while also taking care to recognize
the cultural and political specificities of individual nations. In this regard, both Secretary
Rubin and Reno emphasized the importance of the United States federal government
facilitating common desired outcomes without requiring cookie-cutter approaches; flexibility
rather than prescription. Secretary Daley, in a similar vein with Rubin, pointed out that in
the age of a global economy, we still need a global safety net. In the environmental front,
Secretary Riley, Administrator Browner, and Secretary Glickman emphasized the
importance of livable communities in the 21st century. They encouraged the President to
push for an environmental initiative that takes on urban sprawl and to put in place a
permanent structure for acquiring and restoring habitat and recreational lands, and restoring
wildlife and historic sites. In short, 21st century communities will be evaluated by such
indicators as smart g r o w t h , cleaner air, and green spaces.
4. Technology
The importance of technology in securing this Administration's goals is evident in
the role it plays in the Departments' initiatives. For instance, Secretary Reno stated that
technology will be a critical component in any COPPS II initiative. In describing promising
initiatives, Secretary Riley emphasized the importance of technology in improving student
achievement. Secretary Daley pointed to technology as playing a critical role in the
changing knowledge-based economy. In our meeting with the USDA, moreover, Secretary
Riley pointed to technology as being an important factor in keeping our economy extremely
competitive.
5. Youth
Most of the Cabinet Secretaries urged the President to prioritize youth-related
agenda items. For instance, Secretary Reno, Secretary Shalala, and Administrator Browner
encouraged the President to work in partnership with local communities towards achieving
a legacy of safer and healthier kids. In addition, Secretary Shalala noted the importance of
child care as a signature item. On the public safety front, Secretary Rubin iterated a
Page 2;
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departmental focus on guns, kids, and schools. With regard to education, Secretary Riley
pointed out that education was the defining theme and message of the November elections
and that the President should announce a plan to strengthen our public schools. Echoing
Secretary Riley's emphasis, Secretary Daley stated that the President must discuss
education in the State of the Union. Finally, in a different vein, Secretary Herman asserted
the importance of expanding the winner's circle and strengthening the social safety net.
Specifically, Secretary Herman is leading the Department of Labor in addressing the needs
of out of school youth and increasing youth employment in the United States, and
combating child labor in the global community.
Page 3"
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;
Tanya E. Martin
12/21/98 05:45:36 PM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Teacher Quality
Teacher quality stuff. I don't have any great data on removing incompetent teachers from the
classroom. I've asked folks to take another stab at getting more teacher quality data.
The sourcing is all abbreviated -- but I'll get staff at Education to provide non-abbreviated report
names later. I thought getting the data to you today was better than waiting to un-abbreviated
sources.
* 2 8 % of secondary teachers do not have at least a minor in their main assignment field. (NCES,)
* 4 3 states require a basic skills exam for beginning teachers - NASDTEC manual
* 3 2 states require a subject matter exam for beginning teachers. - NASDTEC manual
* 2 5 states require a teaching knowledge exam (i.e. teaching pedagogy) for beginning teachers. NASDTEC manual.
* 7 states do not require student teaching; and35 states require less than 12 weeks of student
teaching. (NCTAF report 1996)
*Since 1985 when the first alternative teacher certification program in NJ licensed its first
candidates, the number of individuals certified through alternative routes has grown rapidly. In
1 9 9 7 , 41 states and DC reported more than 7 5 , 0 0 0 people have been licensed to teach through
alternative routes. (NCIE)
* 2 3 states and DC have designed alternative licensure programs explicitly for bringing talented
individuals w i t h at least a bachelor's degree into teaching. This compares w i t h 11 such programs
in 1 9 9 1 . (NCIE)
* T X , FL and NY hold institutions of higher education accountable for teacher training by requiring
that 7 0 - 8 0 % of the graduates of a school of education pass the state teacher exam.
•Nation's schools will need to hire 2.2 million teachers in the next ten years. Approximately 1/2 to
2/3 of those 2.2 million teachers will be first-time teachers. (NCES)
�• .
•?
:
Tanya E. Martin
"' 12/21/98 05:13:31 PM
Record Type:
To:
Record
Paul D. Glastris/WHO/EOP
cc:
Joshua S. Gottheimer/WHO/EOP
Subject: Information on Business
Article on Estman Kodak on of hundreds of companies participating in the Business Coalition for
Education Reform's "Making Academic Achievement Count" project: employers taking steps to
send a clear message to students that "school counts" by requesting and using high school
transcripts when recruiting job applicants.
Daily Record
Rochester, NY
Monday, March 2, 1998
Kodak Adds High School Transcripts to Hiring Criteria
Company Now Requires Applicants Seeking Entry-Level Jobs to Provide Transcripts
Eastman Kodak Co. is now requiring that all applicants seeking entry-level operator positions in
Rochester provide high school records of education.
The Rochester City School District and Greece Central School District have assisted Kodak in
changing its hiring practices for entry-level operator positions. Representatives from both school
districts advised Kodak on how to understand and benefit from high school transcripts. The policy
change, which went into effect this month, is a result of a commitment made by George M.C.
Fisher, Kodak's chairman and chief executive officer, during the 1996 Nation Education Summit. A t
the summit, 41 of the nation's governors, business leaders and educators agreed to work together to
raise academic standards and accountability in schools nationwide.
"This policy change is intended to send a powerful message to students -- namely, that h o w you do
in school has far-reaching implications for future employment possibilities w i t h companies like
Kodak," said Michael P. Morley, senior vice president and director, Corporate Human resources,
Kodak. "It also serves as an opportunity to initiate dialogue w i t h students, parents, schools and the
community regarding the kind of workplace skills that we require today and will require in the future
at our company."
Kodak has already implemented a similar policy at its northern Colorado manufacturing facility. In
January, Kodak's Colorado Division began requiring that all prospective employees seeking
entry-level positions, most of which are in manufacturing, provide school records during the
application process.
This effort is one of the ways businesses and schools are working together to emphasize the
important connection between education and employment.
�"We're confident that this initiative, along w i t h our recent implementation of the Certificate of
Employability, will help ensure employers like Kodak access to highly qualified candidates w h o
meet their requirements,' said Dr. Clifford Janey, superintendent of the Rochester City School
district. "This change in policy is another illustration of how we are working w i t h businesses like
Kodak to ensure a workforce that is capable of competing globally."
Kodak and school officials emphasized that school transcripts will supplement - not replace -previous criteria considered for employment, including pre-hire tests, work experience, and
interview performance. Application forms for entry-level operator positions at Kodak in Rochester
now state that individuals out of high school five years or less, w i t h no advanced degree, must
provide a certified school-based record (such as a transcript or GED) as part of their applications.
"The intent of this initiative is not to require a transcript to be hired at Kodak," Morley said. "Its
intended to provide additional information to help us develop a more complete picture of an
applicants skills, which will help us to make better hiring selections.'
Kodak is one of a growing number of companies nation-wide implementing the use of school-based
records in the hiring process. T w o years ago, following the National Education Summit, The
National Alliance of Business, the Business roundtable, and the U.S. Chamber of Commerce
created the Business Coalition for Education Reform. The Coalition's purpose is to reinforce the
connection between school performance and workplace success. One of its goals is to have over
1 0 , 0 0 0 American businesses asking for school-based records as part of their hiring practices.
"This is a w i n - w i n situation for everybody," Janey said. "Employers who request students' school
records stand to gain a better picture of the applicant. Educators are finding that the prospect of a
reward for studying helps students focus more on long-term academic and career goals, enabling
them to learn more and achieve." And students benefit when they recognize that employers want
workers w h o succeed in school."
�r000'855T.FA2 '
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Crime -- SOTU factoids
Crime rates - community policing:
•
The COPS Program has helped to fund over 88,000 officers, and we are on
track to meet the President's goal to fund 100,000 officers this year.
•
We have the lowest murder rate in 30 years. The homicide rate has
plummeted so much, that in 1997, there were over 6,300 fewer people
murdered than in the year the President took office (1993).
Drugs and Crime:
•
Drug users are involved in approximately three to five times the number of
crimes as arrestees who do not use drugs. (Source: 1998 National Drug
Control Strategy.)
•
Active drug addicts commit between an estimated 89 to 191 property and
violent crimes per year. On a conservative assumption of 100 crimes per
year, for each 10,000 drug-addicted inmates who after release stay off drugs
and crime, the nation will experience a reduction of one million crimes a year.
(Center for Addiction and Substance Abuse, 1998, Behind Bars: Substance
Abuse and America's Prison Population, p. 153)
•
About three out of four inmates - about 1.4 million prisoners out of 1.7
million -- were either high on drugs or alcohol when they were arrested, stole
property to feed their habit, or have a history of substance abuse. (Source:
Center for Addiction and Substance Abuse, 1998, Bureau of Justice
Statistics on mid-year 1997 inmate population).
•
President's Drug Offender Accountability Initiative: We have an obligation to
demand that all who come into contact with the criminal justice system stay
drug-free. The President's Drug Offender Accountability Initiative is a plan of
frequent drug testing, progressive sanctions, and mandatory treatment.
Boston/juvenile crime
•
Not a single child was killed with a gun in Boston for a two and a half-year
stretch between 7/95 and 12/97. During that same time, about 3,000 kids
were murdered with guns in the rest of the country. (Office of Juvenile
Justice and Delinquency and Prevention)
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Guns:
Since enactment of the Brady Law, over a quarter of a million handgun sales
have been blocked to felons, fugitives, and stalkers. (Source: Department of
Justice, Bureau of Justice Statistics. 6/98 Bulletin on Pre-Sale Handgun
Checks.)
NB: We're still waiting on an example of a felon or fugitive stopped by
background checks. While we aren't as enthusiastic about the number of
guns blocked by background checks could fill a room example, Treasury/ATF
confirmed that the average handgun size is 6 Vi", if you want to come up
with an end-to-end calculation of your o w n .
page"2i
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Tanya E. Martin
12/21/98 12:57:21 PM
Record Type:
To:
Record
Joshua S. Gottheimer/WHO/EOP
cc:
Subject: SOTU stuff
Josh,
Here are some facts and anecdotes on both AmeriCorps and on senior service (we will have new
initaitives in the budget on both of these issues). The "facts" can be sourced to the Corporation
for National Service. Please call if you need more on these issues.
Tanya
—- Forwarded by Tanya E. Martin/OPD/EOP on 12/21/98 12:55 PM
^^^f—w
Record Type:
To:
"Gomperts, John" <JGOMPERT @ cns.gov>
1 2/20/98 02:1 5:00 PM
Record
Tanya E. Martin/OPD/EOP
cc:
Subject: SOTU stuff
Info on AmeriCorps and Senior Service Corps
More than 1 0 0 , 0 0 0 citizens have served with AmeriCorps since 1993
Together they have:
*
*
*
*
*
*
*
*
taught, tutored and mentored more than 2.6 million children
recruited and managed nearly 1.7 million volunteers
provided food and clothing to more than 2.4 homeless people
provided after-school care for more than half a million at-risk youth
removed more than 6 9 , 0 0 0 tons of trash from neighborhoods
served more than 4 , 0 0 0 communities
restored more than 1 2 , 5 0 0 miles of beach or river
created or maintained more than 1 7 , 0 0 0 miles of trails
(More than 1 0 , 0 0 0 (1 in 10) have served w i t h faith-based organizations)
How big is 100,000?
* entire population of Peoria
�* entire undergraduate population of University of TX(48,000) and Ohio
State(50,000)
* milestone it took Peace Corps more than 20 years to reach
What have they accomplished?
2.6 million children taught, tutored and mentored
* one of every ten elementary school students in U.S.
* Every child in New York City, Chicago and Los Angeles public school systems
What if one out of every ten high school seniors spent a year serving their
country w i t h AmeriCorps before they turn 25 (approx. 3 0 0 , 0 0 0 new members)?
* a tutor for every 3rd and 4th grader w h o is reading below grade
level(approx. 2.8 3rd and 4 t h graders reading below grade level)
* a mentor for every high school student in danger of dropping out of school
( 5 0 0 , 0 0 0 kids drop out each year)
* an after-school program for every child w h o has no place to go after the
bell rings. (5 million children left alone at home each week - assuming 1
AmeriCorps member operating after-school program for 16 kids)
What if - for seniors - one out of every ten senior age 65 and older served
(approx 3 4 7 , 0 0 0 new senior volunteers)?
* A senior teaching children to read in every first grade classroom (approx.
2 2 0 , 0 0 0 1st grade classrooms)
* A foster grandparent for every child in head start center ( 8 0 0 , 0 0 0 Head
Start kids)
* dramatically expand at-home care for the 5 million older Americans w h o need
help to live independently.
BEST OF NATIONAL SERVICE
AmeriCorps
* In Alabama, AmeriCorps members recruited more than 1,300 volunteer tutors
to work in 110 schools across the state. More than 7 0 % of children served
showed significant improvement in reading.
* AmeriCorps members serving w i t h Habitat for Humanity in California
recruited more than 1 1 , 0 0 0 volunteers.
* In Bridgeport, CT. AmeriCorps members tutor and mentor students at Harding
High School. As a result of their service, the drop out rate at Harding
decreased from 16 percent to 6 percent; the Latino dropout rate decreased
from 22 percent to 7 percent.
* In Buffalo, NY AmeriCorps members operate safety patrols in high crime
areas. Buffalo Police report that while AmeriCorps members have been
serving, crime has gone d o w n by nearly half in the areas they patrol.
Senior Corps
�* Thirty senior volunteers in New Britain, Connecticut, started a fraud
prevention program that helped 5,000 seniors recover more than $ 5 0 0 , 0 0 0 from
fraudulent telemarketing firms and other consumer scams.
* In Boston, 2 0 senior volunteers tutored 88 second- and third-graders w h o
were reading below grade level. After one year of intense tutoring, the
reading scores of all the children increased substantially - more than half
the children's reading scores increased by nearly three reading levels.
Learn and Serve America
* Three years ago, Putnam Vocational High School in Springfield, Mass. had
the highest dropout rate in the district and was the most violent school in
the western part of the state. Frustrated students and teachers saw
service-learning as a path to change. With help from Learn and Serve America,
students built a $1.3 million health clinic at the school for only $ 3 0 0 , 0 0 0 ,
and now high school nursing students study alongside doctors and medical
students at the clinic. As a result, fights have decreased by 9 0 % , school
attendance is up, and gang violence has been virtually eliminated.
* A recent study by Brandeis University and Abt Associates proves that
service-learning programs help students improve their citizenship skills and
improve their attitudes t o w a r d school. Three out of four students w h o
participated in Brandeis study report that they learned more during their
community service experience than in a typical class taken in school.
AmeriCorps Heroes (serving this year):
Rena A n t h o n y , 2 2 , National Association of Community Health Centers,
Providence, Rl
T w e n t y - t w o year-old Brown graduate Rena Anthony was on the fast track in a
career in public health. She was already accepted into graduate school but
deferred admission in order to join AmeriCorps, where she is serving in an
Ob/Gyn clinic at a Providence community health center. Rena says, "I was
accepted into grad school but realized that I would be studying people
w i t h o u t knowing what their lives are like." In addition to broadening her
knowledge, Rena had another reason for joining AmeriCorps: "I really wanted
to serve. This is the first year I've had a big choice in what I do w i t h my
life - I wanted to start this new part of my life by serving."
Markell Harrison, 2 5 , Athletes in Service to America, Buffalo, NY
Through his love of sports and service, Markell Harrison has overcome many
obstacles to
become a role model for the young people in Rochester public schools. After
his father murdered his mother, Markell grew up in series state homes and
foster care. He had a rough childhood and often got into trouble. But he
persisted in his studies and athletics and w o n a track scholarship to
Rochester Institute of Technology. After graduating, Markell wanted to give
something back to his community. He joined AmeriCorps and is now serving
w i t h Athletes in Service to America, where he tutors elementary students,
teaches conflict resolution and leads children in after-school sports. In
his spare time he serves w i t h Big Brothers/Big Sisters and People Inc., a
�group home for disabled people. His AmeriCorps experience this year will
prepare him for his next big challenge: getting a masters in education and
becoming a teacher.
�PEOPLE HELPED BY CLINTON-GORE AGENDA
•
15 Million Working Families Received A Tax Cut from the Expanded EITC ~ the
average family with t w o kids who received the EITC got a tax cut of $ 1 , 0 2 6 .
4.3 Million People Lifted Out of Poverty By EITC - Double The Number in
1993 -- in 1997, the EITC lifted 2.2 million children, 1.1 million
African-Americans, and nearly 1.2 million Hispanics out of poverty.
•
10 Million Workers Got A Raise With the Increase in the Minimum Wage $ 1 , 8 0 0 for someone who worked full-time. Now we want to raise it again to
help 12 million workers.
With Minimum Wage and EITC, Families Over $ 2 , 7 0 0 Better Off. The
combined effects of the minimum wage and the EITC have dramatically
increased the returns to work for families with children. Between 1993
and 1 9 9 7 , families with t w o children experienced a 27 percent -- $2,761
- increase in their income because of these t w o policies alone.
•
26 Million Families w i t h 4 0 Million Children Under Age 17 Will Receive $ 5 0 0
Child Tax Credit - because of the President's efforts, 13 million children from
families w i t h incomes below $30,000 will receive the tax credit.
•
5.8 Million Students Will Receive a HOPE Scholarship Tax Credit of up to
$1,500.
•
7.1 Million Students Will Receive the Lifetime Learning Tax Credit.
•
67 Million Americans Guaranteed They Can Take Leave from Their Job to Care
of a Sick Relative or a Newborn Child Without Fear of Losing Their Job or Their
Health Insurance -- millions have taken advantage of FMLA already.
•
17.3 Million New Jobs Under Clinton/Gore Administration - that's 1.3 million
more new jobs in 70 months than were created during the entire 96 months of
the Reagan Administration (17.3 million under Clinton vs. 16.0 million under
Reagan).
•
7.3 Million New Homeowners -- with interest rates low, confidence up, and
incomes rising, the homeownership rate has hit an all-time high of 66.8
percent. And 18 million families have refinanced their mortgage since 1993 on average, they have saved about $1,800 per year in lower mortgage
payments.
•
Typical Family Income Up $ 3 , 5 1 7 Since 1993 -- Since President Clinton's
�fpeoplefaTf
Economic Plan passed in 1993, median family income has increased from
$ 4 1 , 0 5 1 in 1993 to $44,568 in 1997 -- that's a $3,517 increase in income,
adjusted for inflation. From 1988 to 1992, median family income fell $ 1 , 8 3 5 ,
adjusted for inflation.
Lowest African-American Poverty Rate on Record ~ Since 1993, the
African-American poverty rate has dropped from 33.1 percent to 26.5 percent
- that's its lowest level on record. In 1997, the African-American child
poverty rate fell from 39.9 percent to 37.2 percent -- its lowest level on record
(data collected since 1959).
Health Care for 5 Million Uninsured Children -- President Clinton fought in
balanced budget agreement for $24 billion for children's health initiative, the
largest children's health care budget increase since Medicaid was created in
1965.
Expanded Head Start By T w o Thirds -- Nearly $2 Billion Higher Per Year. Since
1 9 9 3 , President Clinton and Congressional Democrats have expanded Head
Start by 57 percent, from $2.8 billion in FY93 to $4.7 billion in FY99. The
program now serves about 8 5 0 , 0 0 0 children.
Increased WIC -- 1.7 Million More Women, Infants, and Children Helped. Under
President Clinton, participation in WIC has expanded by 1.7 million -- from 5.7
million in 1993 to 7.4 million women, infants, and children next year, w i t h
funding rising from $2.9 billion to $3.9 billion.
Expanded Job Training To Help 6 6 6 , 0 0 0 Dislocated Workers - Double Number
Served in FY93. Since 1993, dislocated worker funding has been expanded by
171 percent -- helping well more than double the number of workers served in
1993.
$1 Trillion in Financial Commitments Under Community Reinvestment A c t
(CRA). Under President Clinton, the private sector has pledged more than $1
trillion going forward in loans to distressed communities - and more than 95
percent of these financial commitments have been made since 1 9 9 2 . There
have been 23 times more financial commitments to distressed communities
from banks in the past 5% years than in the previous 1 5 years combined.
Largest Maximum Pell Grant Award Ever. Last year, President Clinton signed
into law the largest one-year increase in Pell Grant scholarships in 20 years.
This year, the final budget provides $7.7 billion for Pell Grants, an increase of
$359 million over FY98, increasing the maximum Pell Grant award from
$ 3 , 0 0 0 to $3,125 -- that's the largest maximum award ever, 36-percent higher
than it was in 1994. This year, approximately 4 million students will receive
�\ people~cl2"1
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"
~~
'
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"
"
Pell Grant awards.
125 Empowerment Zones and Enterprise Communities. The Clinton
Administration has announced 106 EZs and ECs - 11 urban and rural EZs and
95 ECs. The EZ/EC effort has generated more than $4 billion of new
private-sector investment in community development activities. The President
has also signed into law a second round of EZs -- 15 new urban and 5 new
rural zones - which will include tax incentives, small business expensing, and
private activity bonds. The President's FY99 budget calls for an additional
$1 50 million per year to provide needed flexible funding for the new EZs.
5.7 Million Fewer People on Welfare Largest Decline in the Welfare Rolls in
History -- the latest caseload numbers, released in August, show that welfare
caseloads fell by 5.7 million since President Clinton took office and 3.8 million
since he signed the welfare reform law.
Created the Community Development Financial Institutions Fund (CDFI).
Through grants, loans, and equity investments, the Treasury Department's
CDFI Fund is helping to create a network of community development financial
institutions in distressed areas across the United States. This year, the CDFI
Fund's budget was increased to $95 million.
$3 Billion Welfare-to-Work Jobs Initiative. The Clinton Administration fought
and secured for a $3 billion welfare-to-work jobs initiative, as part of the
Balanced Budget Act. The Administration provided these grants directly to
both cities and states for allocating additional resources to help long-term,
hard-to-serve welfare recipients find and keep jobs.
Page 3"
�I soul218^11)3"
"Page f j
Possible State of the Union Welfare Announcements
(1) Caseloads Continue Their Record Declines: Unveil new caseload data showing
the welfare rolls have fallen below 8 million for the first time since 1969 and have
fallen nearly 2 million since last year's State of the Union. The welfare rolls have
declined by 43 percent since January 1993, when they stood at 14.1 million, and
by 35 percent since their August 1996. The percentage of the U.S. population on
welfare is at its lowest since 1968 -- 2.9 percent.
Number of
people on
welfare
(millions)
Oath of Office
(1/93)
Welfare Bill
Decline
since
taking
office
(#)
(%)
Decline
since
signing
law
(#)
(%)
Decline
since
prior
SOU
(#)
(%)
President's Statements
14.1
12.2
1.9
14%
1997 State of
Union (10/96 data)
11.9
2.2
16%
.3
2%
1998 State of
Union ( 9 / 9 7 data)
9.8
4.3
31%
2.4
20%
2.1
18%
1999 State of
Union ( 9 / 9 8 data)
8.0**
6.1
43%
4.3
35%
"Today, w e are taking an
historic chance to make
welfare what it was meant t o
be: a second chance, not a
way of life."
" N o w each and every one of
us has to fulfill our
responsibility -- indeed, our
moral obligation - t o make
sure that people w h o n o w
must work, can work. N o w
we must act to meet a n e w
goal: 2 million more people
off the welfare rolls by the
year 2 0 0 0 . "
"Last year, after a record
four-year decline in welfare
rolls, 1 challenged our nation
to move 2 million more
Americans off
welfare by the year 2 0 0 0 . I'm
pleased to report w e have also
met
that goal, t w o full years ahead
of schedule."
1.8
18%
Signing* (8/96)
* These are the actual caseload numbers for August 1996, which were not yet available when the
President signed the bill into law. The President's August 1996 statements were based on May
1996 data.
* * The actual figures are just under 8 million (7,986,000).
�|sou1218.wpg°
"Page 2~|
(2) More Welfare Recipients are Working than Ever Before: Announce new data
showing nearly every state is meeting the welfare law's overall work requirement
(requiring 25 percent of all welfare families with an adult to work) and that Census
data shows the percentage of people on welfare in one year who were working in
the following year has increased by nearly one-third since 1996, the year the
President signed the welfare reform law.
(3) The Public and Private Sectors Are Hiring from the Welfare Rolls. Announce
that the Welfare to Work Partnership has met the President's challenge to sign up
10,000 businesses, and (possibly) that federal agencies have met the challenge to
hire 1 0 , 0 0 0 welfare recipients -- ahead of the target date of 2 0 0 0 (we'll know by
the first week of January if we've met the federal hiring goal).
Welfare Bill Signing
(8/96)
1997 State of
Union
Cabinet Meeting on
Federal Hiring of
Welfare Recipients
(4/10/97)
Welfare to Work
Partnership Launch
(5/20/97)
1 9 9 8 State of
Union
Welfare to Work
Partnership
Anniversary
(5/27/98)
President's Statements
" N o w that we are saying w i t h this bill we expect w o r k , we have to make
sure the people have a chance to go to work. If we really value w o r k ,
everybody in this society - businesses, non-profits, religious institutions,
individuals, those in government -- all have a responsibility to make sure
the jobs are t h e r e . "
"To every employer in our country w h o ever criticized the old welfare
system, you can't blame that old system anymore, we have torn it d o w n .
Now do your part. Give someone on welfare the chance to go to w o r k .
Tonight, 1 am pleased to announce that five major corporations -- Sprint,
Monsanto, UPS, Burger King and United Airlines - will be the first to join
in a new national effort to marshal America's businesses, large and small,
to create jobs so that people can move from welfare to w o r k . "
Announced plan to hire 1 0 , 0 0 0 welfare recipients in the federal
government by the year 2 0 0 0 , an effort to be led by the Vice President
(this announcement was the result of a Presidential directive issued
3/8/97 for agencies to develop welfare to work hiring plans).
Announced the Partnership had g r o w n from 5 to 105 companies and set a
goal of achieving 1,000 within a year.
"We still have a lot more to do, all of us, to make welfare reform a
success -- providing child care, helping families move closer to available
jobs, challenging more companies to join our welfare-to-work partnership,
increasing child support collections from deadbeat parents w h o have a
duty to support their o w n children."
Announced the Partnership had g r o w n from 105 to 5 , 0 0 0 companies and
that Partnership companies had hired 1 3 5 , 0 0 0 welfare recipients in 1 9 9 7 .
The President challenged the Partnership to double its number of hires and
the number of companies participating. The President also announced
that federal government has hired 4 , 8 0 0 people from welfare to work in
the last year, of the goal of 1 0 , 0 0 0 by the year 2 0 0 0 .
(4) We Must do More to Ensure Those Still on the Rolls Go to Work. Announce our
proposal for $1 billion more in Welfare-to-Work funds to help those welfare
recipients still on the rolls who face the greatest challenges get jobs and succeed in
�|sou1218.wpcl
the work force. This revised program will contain a new emphasis on increasing
the employment of low income fathers so they can better meet their responsibilities
to their children, with a minimum of $150 million for Responsible Fatherhood
Grants. (See separate one pager for more details.)
Page S j
�jsou1218.wpd
"PageTi
(4) New Resources for Child Support Crackdown. Unveil a new child support law
enforcement initiative to double the number of prosecutions of egregious child
support violators by providing resources to identify, investigate, and prosecute
these cases. This effort will be part of a challenge to law enforcement in every
state to join our national effort to ensure America's children receive the support
that they need and deserve. (See one pager for more details -- level of funding is
still undecided, so it's unclear if we can pledge to double the number of
prosecutions.)
We may also be able to release new 1998 figures showing additional increases in
child support collections. (We do not have these data yet but are working on
getting them by early January. These data will update our current statistics
showing a 68 percent increase in child support collections since the President took
office, which are based on 1992-1997 comparison).
1996 State of the
Union
Welfare Bill Signing
(8/96)
1 9 9 7 State of
Union
1 9 9 8 State of
Union
President's Statements
"In particular, 1 challenge the fathers of this country to love and care for
their children. If your family has separated, you must pay your child
support. We're doing more than ever to make sure you do, and w e ' r e
going to do more, but let's all admit
something about that, t o o : A check will not substitute for a parent's love
and guidance. And only you - only you can make the decision to help
raise your children. No matter w h o you are, how low or high your station
in life, it is the most basic human duty of every American to do that job
to the best of his or her ability."
"It's the most sweeping crackdown on deadbeat parents in history....With
this bill w e say, if you don't pay the child support you owe we'll garnish
your wages, take away your driver's license, track you across state lines;
if necessary, make you work off w h a t you pay - what you o w e . It is a
good thing and it will help dramatically to reduce welfare, increase
independence, and reenforce parental responsibility."
"In the last four years, we have increased child support collections by 5 0
percent. Now we should go further and do better by making it a felony
for any parent to cross a state line in an attempt to flee from this, his or
her most sacred obligation."
"We still have a lot more t o do, all of us, t o make welfare reform a
success - providing child care, helping families move closer to available
jobs, challenging more companies to join our welfare-to-work partnership,
increasing child support collections from deadbeat parents w h o have a
duty to support their o w n children."
�|sou1218.wpcl
Signing of Deadbeat
Parents Punishment
Act (6/24/98)
PageSj
"The Deadbeat Parents Punishment Act of 1998 deals with child support
evaders in the most serious cases. From now on if you flee across state
lines and refuse to pay child support you may be charged with a federal
offense, a felony offense, and may land in jail for up to two years. One
way or the other people who don't support their children will pay what
they must."
In addition to signing the bill into law, the President announced that a
new child support collection system launched nine months ago has
already located one million delinquent parents and the child support
enforcement program established a record 1.3 million paternities in 1997.
Overall, 68 percent more child support was collected in 1997 than in
1992.
(5) Additional Funds for Welfare to Work Housing Vouchers and Welfare to Work
Transportation. The President's budget will contain additional funds for the
President's proposals to help ensure welfare recipients who need to move or obtain
transportation in order to go to work can do so (amounts are still being
determined).
1998 State of
Union
President's Statements
"For 13 years, Elaine Kinslow of Indianapolis, Indiana, was on and off
welfare. Today, she's a dispatcher with the a van company. She's saved
enough money
to move her family into a good neighborhood, and she's helping other
welfare recipients go to work. Elaine Kinslow and all those like her are
the real heroes of the welfare revolution. There are millions like her all
across America. And I'm happy she could join the First Lady tonight.
Elaine, we're very proud of you. Please stand up.
We still have a lot more to do, all of us, to make welfare reform a success
- providing child care, helping families move closer to available jobs,
challenging more companies to join our welfare-to-work partnership,
increasing child support collections from deadbeat parents who have a
duty to support their own children."
Signing of
Transportation
Equity Act (TEA-21)
into law
(6/9/98)
"The Act will expand opportunity. It offers transportation assistance to
enable more Americans to move from welfare to work. If you can't get to
work, you can't go to work."
�|budgl209.wpd
PaglTTj
Welfare-to-Work Reauthorization
In 1 9 9 7 , the President insisted that the Balanced Budget Act provide $1.5 billion a
year in FY 1998 and FY 1999 for states and local communities to help move
long-term welfare recipients in high poverty areas into jobs and help them succeed
in the work force. In order to ensure the success of welfare reform for individuals
who face the greatest challenges, we propose to reauthorize the Welfare-to-Work
program in FY 2 0 0 0 , with several program modifications including a stronger focus
on increasing the employment of low income fathers so they can better meet their
responsibilities to their children. Given current funding constraints, we recommend
reauthorizing the program at $1 billion for FY 2 0 0 0 .
Continuing to Help Those with the Greatest Challenges Get and Keep Jobs
The Welfare-to-Work program funds job creation, job placement and job retention
efforts such as wage subsidies and other critical post-employment support services.
The program targets welfare recipients with the greatest challenges to employment
-- long term recipients with poor work histories, low basic skills, or substance abuse
problems. The program also serves noncustodial parents with barriers to
employment whose children are long term welfare recipients.
Currently, about 75 percent of the Welfare-to-Work funds are allocated to states on
a formula basis, which in turn must pass 85 percent of these funds to local Private
Industry Councils or Workforce Boards. The remaining 25 percent of the funds are
awarded on a competitive basis by the Department of Labor to support innovative
welfare to work projects at a variety of private and public organizations.
In this reauthorization, we propose to retain the program's strong focus on those
most in need by retaining the basic individual eligibility criteria, w i t h some
modifications. We propose to further target funds on areas of need by 1)
committing the Administration to focus competitive grant funds on special high
priority needs, including individuals with substance abuse problems, low
literacy/basic skills, and/or disabilities; 2) doubling the funds set aside for Native
American tribes; and 3) requiring at least 20 percent of formula funds to be used to
help fathers get and keep employment and become financially responsible for their
children.
Stronger Focus on Fathers
Because it is critically important that both parents contribute to the support of their
children, this Administration has launched unprecedented and sustained child
support campaign and in 1997 we collected a record $13.4 billion in child support,
a 68 percent increase since 1992. While every father has a moral obligation to
support their children, some need help getting a job and succeeding in the
�|budg1209.wpd
'
'
workforce in order to do so. Already, many states are using some of their
Welfare-to-Work funds to help fathers of children on welfare get jobs. Now, we
propose to ensure every state help committed fathers fulfill their obligations to their
children. Under this proposal, states will provide job placement and job retention
assistance to low income fathers who sign personal responsibility contracts
committing them to work and pay child support. States shall commit at least 20
percent of their formula funds (about $1 50 million a year) to helping low income
fathers get and keep jobs and ensuring they support their families. States that wish
to devote more of their formula funds to this population may do so.
fcage"?]
�|pov0924.wp'cl"
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"
KEY FACTS on CENSUS INCOME AND POVERTY REPORT
September 24,
1998
TODAY, THE CENSUS BUREAU RELEASED THEIR ANNUAL REPORT ON INCOME
AND POVERTY IN AMERICA FOR 1997. HERE ARE SOME OF THE RESULTS:
Broad-Based Income
Gains:
•
Typical Household Income Up 1.9 Percent in 1 9 9 7 . Income for the median
household rose $699, from $36,306 in 1996 to $37,005 in 1 9 9 7 , adjusted
for inflation.
•
Typical Family Income Up $ 3 , 5 1 7 Since 1 9 9 3 . Another measure of income
-- family income, which excludes single individuals and counts only related
members in any household -- shows a similar trend. Last year, the median
family's income, adjusted for inflation, increased 3.0 percent (or $1,297) -the fourth consecutive annual rise. Since President Clinton's Economic Plan
passed in 1 9 9 3 , median family income has increased from $41,051 in 1993
to $ 4 4 , 5 6 8 in 1997 -- that's a $3,517 increase in income, adjusted for
inflation. From 1988 to 1992, median family income fell $1,835, adjusted
for inflation.
•
Under President Clinton, The Typical African-American Household's Income
Is Up $ 3 , 3 5 4 . The median income of African-American households rose 4.3
percent (or $1,029) last year. And since 1 9 9 3 , the median income of
African-American households has increased from $21,696 to $ 2 5 , 0 5 0 -that's $ 3 , 3 5 4 or a 15-percent increase, adjusted for inflation, between 1993
and 1 9 9 7 .
•
Income of Typical Hispanic Household Up $ 2 , 5 5 3 in Past T w o Years. In
1997, the income of the median Hispanic household, adjusted for inflation,
increased from $25,477 in 1996 to $ 2 6 , 6 2 8 in 1997 -- that's an increase of
$1,151 or 4.5 percent. Over the past t w o years, the income of the typical
Hispanic household has risen $2,553 -- or nearly 11 percent -- the largest
two-year increase in Hispanic income on record.
•
After Rising Sharply for 20 Years, Inequality Has Stabilized. After rising for
nearly 20 years, income inequality has not changed significantly over the
past four years. Since 1993, every income group - from the most well-off
to the poorest -- experienced a real increase in their income.
•
Earnings for Typical Workers Up. Last year, the earnings of the median
PageTf
�|pov0924.wpd
" " " P a g e !
full-time, year-round male rose 2.4 percent, from $32,882 in 1996 to
$ 3 3 , 6 7 4 in 1997 and the earnings of the median full-time, year-round female
rose 3.0 percent, from $ 2 4 , 2 5 4 in 1996 to $24,973 in 1997. This means
that the female-to-male ratio remained at 74 percent -- its all-time high.
Reductions in Poverty:
•
Poverty Rate Fell To 13.3 Percent in 1997
Down from 15.1 Percent in
1 9 9 3 . In 1997, the poverty rate dropped to 13.3 percent from 13.7 percent
the year before. Since President Clinton signed his Economic Plan into law,
the poverty rate has declined from 15.1 percent in 1993 to 13.3 percent last
year. That means that there are 3.7 million fewer people in poverty today
than in 1993. (In 1 9 9 7 , the poverty threshold was $16,400 for a family of
four.)
•
The African-American Poverty Rate Down To Its Lowest Level on Record.
While the African-American poverty rate is still far above the poverty rate for
whites, it declined from 2 8 . 4 percent in 1996 to 26.5 percent in 1997 -that's its lowest level recorded since data were first collected in 1 9 5 9 .
Since 1993, the African-American poverty rate has dropped from 33.1
percent to 26.5 percent -- that's the largest four-year drop in
African-American poverty in more than a quarter century (1967-1971).
•
Last Year, Largest Hispanic Poverty Drop In T w o Decades. Last year, the
Hispanic poverty rate dropped from 2 9 . 4 percent to 27.1 percent -- that's
the largest one-year drop in Hispanic poverty since 1978. While there is still
more work to do, since President Clinton took office, Hispanic poverty has
dropped from 30.6 percent to 27.1 percent.
•
Under President Clinton, Largest Four-Year Drop in Child Poverty Since
1960s. While the child poverty rate remains high, in 1997, it declined from
20.5 percent to 19.9 percent. Under President Clinton, the child poverty
rate has declined from 22.7 percent to 19.9 percent -- that's the biggest
four-year drop in nearly 3 0 years (1965-1969).
•
Elderly Poverty Rate As Low As It's Ever Been. In 1997, the elderly poverty
rate dropped to 10.5 percent, from 10.8 percent in 1996. The elderly
poverty rate is now as low as it's ever been - it was also 10.5 percent in
1995.
•
Child Poverty Among African-Americans Down To Lowest Level on Record.
In 1 9 9 7 , the African-American child poverty rate fell from 39.9 percent to
3 7 . 2 percent -- its lowest level on record (data collected since 1959). Since
�|povfl9Mwpd""
" ' "
"
1993, the child poverty rate among African-Americans has dropped from
46.1 percent to 37.2 percent -- that's the biggest four-year drop on record.
Hispanic Child Poverty Dropped More Last Year Than Any Year on Record.
In 1997, the Hispanic child poverty rate dropped from 40.3 percent to 36.8
percent -- that's the largest one-year drop on record (data collected since
1976). Since 1993, the child poverty rate among Hispanics has declined
from 40.9 percent to 36.8 percent.
4.3 Million People Lifted Out of Poverty By EITC -- Double The Number in
1993. In 1993, President Clinton expanded the Earned Income Tax Credit,
providing a tax cut for low-income working families. In 1997, the EITC lifted
4.3 million people out of poverty -- that's double the number of people lifted
out of poverty by the EITC in 1993. In 1997, the EITC lifted 2.2 million
children, 1.1 million African-Americans, and nearly 1.2 million Hispanics out
of poverty.
Page 3 j
�Sarah A. Bianchi @ OVP
12/20/98 07:51:31 PM
Record Type:
To:
Record
Jeffrey A. Shesol/WHO/EOP, Joshua S. Gottheimer/WHO/EOP, Jordan Tamagni/WHO/EOP
cc:
Subject: did you know that?
In the year 2000, older people will outnumber children in the world for the first
time in history.
�1
|~66i,62n.wpd
Teen Smoking Fact Sheet
Teen Smoking is a Major Problem in this Country
•
4.5 million children ages 12-17 are current smokers. 1
•
Every day, more than 3 0 0 0 young people become regular smokers in this
country,2 and 1000 will die prematurely from smoking-related diseases as a
result.3
•
In 1 9 9 6 , 66 percent of the 1.8 million Americans who became regular
smokers were under the age of 18 (1.2 million).4
•
Almost 90 percent of adult smokers began at or before age 18.5
Tobacco Use by Teens is On the Rise
•
Cigarettes: Smoking among high-school seniors is at a 19-year high -- 3 6 . 9
percent and since 1 9 9 1 , past-month smoking has increased by 35 percent
among eighth graders and 43 percent among tenth graders.6 Daily smoking
among high school seniors dropped slightly between 1997 and 1 9 9 8 , from
2 4 . 6 to 2 2 . 4 percent.7
•
Smoking rates among high school students rose by nearly a third between
1991 and 1997, from 27.5 percent to 3 6 . 4 percent.
•
Cigarette smoking was highest among white students (39.7 percent),
rising by 28 percent from 1991 (30.9 percent).
•
While the level of cigarette smoking among African-American students
was lower than for white students, the rate increased by 80 percent
between 1991 and 1997 for African-American students (from 12.6
percent to 22.7 percent).
•
Smoking among Hispanic students rose 34 percent, from 25.3 percent
in 1991 to 39.7 percent in 1997.8
•
Between 1 988 and 1 9 9 6 , the number of children who became regular
smokers increased by 73 percent, and this increase resulted in 1.5 million
more children becoming regular smokers over the eight year period.9
•
Cigars: One in five high school students (22 percent) smoked cigars within
the past month. 31.2 percent of male high school students smoked cigars
within the past month, compared with 10.8 percent of female students. 10
•
Smokeless Tobacco: Almost one in ten (9.3 percent) of high school students
used smokeless tobacco within the past month. White male students were
Page
�significantly more likely to use smokeless tobacco products than any other
group of high school students (20.6 percent).11
•
Tobacco Products: Overall, 4 2 . 7 % of high school students used tobacco
products in the previous month (cigarettes, cigars, or smokeless tobacco) -this represents nearly half of male high school students (48.2 percent) and
more than a third of female students (36 percent). 12
Many Teens are Addicted to Tobacco 13
•
Teenagers find it difficult to quit smoking -- 86 percent of teens who smoke
daily and try to quit are unsuccessful.
•
Teenagers underestimate the addictiveness of nicotine - 75 percent of daily
smokers who expect to quit are still smoking five years later.
•
Casual smokers become hooked -- 4 2 percent of young people who smoke
as f e w as three cigarettes per month go on to become regular smokers.
Teen Smoking is Associated with Other High-Risk Behaviors
•
Adolescents (ages 12-17) who are current smokers are 12 times as likely to
use illicit drugs and 23 times as likely to drink heavily as non-smoking
youths. 14 Seventy-four percent of youths who had smoked marijuana in
their lifetime tried cigarettes first. 1 5 Smoking is associated with a host of
other risk behaviors, such as fighting and engaging in unprotected sex. 16
December 18, 1998
�|cse1208.wpd
"
Page 11
Child Support Law Enforcement Initiative
This initiative will double the number of prosecutions of egregious child support
violators over the next XX years by providing resources to identify, investigate, and
prosecute these cases. This effort will be part of a challenge to law enforcement in
every state to join our national effort to ensure America's children receive the
support that they need and deserve. Cost: $45 million over 5 years ($40 million to
DOJ, $5 million to HHS).
Willful Failure to Pay Child Support is a Felony
In June, the President signed into law the Deadbeat Parents Punishment Act,
creating t w o new categories of felonies for the most egregious child support
violators, a proposal he had made in the 1997 State of the Union. This law
strengthens the Child Support Recovery Act, which has resulted in nearly 5 0 0 child
support prosecutions since 1992. Many prosecutors say they would be able to
prosecute even more child support cases prosecutor's office if they had legal staff
dedicated to child support issues and if they received referrals after a complete
financial investigation had been conducted.
New Initiative will Double Child Support Prosecutions
This new initiative will 1) create Child Support Multi-Agency Investigative Teams in
every region of the country to identify, analyze, and investigate cases for
prosecution and 2) provide US Attorneys' offices with paralegals dedicated to child
support issues. This initiative will not only force those prosecuted to pay the child
support they owe, but will influence the conduct of many other parents w h o owe
support.
New Investigative Resources: The new funds will establish investigative teams in
every region of the country. States will refer child support cases to this site, where
trained investigative staff will locate the violator, determine exactly how much he
owes, and document information needed for prosecution. The investigated case
will then be referred to federal or state prosecutors as appropriate. The first five
screening sites will be set up in Columbus, New York, Baltimore, Dallas, and
Sacramento serving 17 states plus D.C. that have the majority of the nation's child
support cases.
New Prosecutorial Resources: To ensure US Attorneys' offices have the skilled legal
staff they need to double the number of prosecutions in XX years, this initiative will
fund a paralegal dedicated to child support cases for every US Attorneys' office
that does not now have one.
A Challenge to Law Enforcement in Every State
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More and more law enforcement officials realize that failure to pay court ordered
child support is a crime and can be a major contributor to juvenile delinquency and
crime. In announcing this initiative, the President will challenge law enforcement in
every state to fight for child support enforcement and join in cooperative
agreements with child support agencies as authorized by the 1996 welfare reform
act.
rage z j
�December 15, 1998
MEMORANDUM FOR MICHAEL WALDMAN
<
FROM:
JEFF SHESOL
^ ^ ' '
SUBJECT:
HIGHLIGHTS FROM SOTU "THEN & NOW" BOOK
Just thought I'd forward these to you; I pulled them from the SOTU book for my own purpose,
which is to rework them into Clinton-speak. I like some of the constructions & iterations. None
of them, though, save TR, are worth quoting (half, it seems, are Brits - is Josh betraying his
Anglophilia?). I especially like the TR quotes (at bottom) ~ they reflect the very same sentiment
the President has expressed all year.
"In today, already walks tomorrow."
- Samuel Coleridge
"We move rapidly in these United States. Our pace is not that of the 18th century, nor long to be
that of the 19th. We are awakening, trembling on the edge of the great discovery that life is
cooperation, that isolation is a crime, that hands must be linked in hands for the accomplishment
of any great result."
-- Carter Harrison, Mayor of Chicago, December 1899
"The world, they say, changed more between the year 1800 and the year 1900 than it had done in
the previous 500 years. That century, the 19th, was the dawn of a new epoch in the history of
mankind ~ the epoch of great cities, the end of the old order of the country life
In the end,
the invention of railways, telegraphs, steamships, and complex agricultural machinery, had
changed all these things: changed them all beyond hope of return."
- H.G. Wells, June 1899
"If we compare each age with those which preceded it we find that the ground which seems for a
time to have been lost is ultimately recovered, we see human nature growing gradually more
refined, institutions better fitted to secure justice, the opportunities and capacities for happiness
larger and more varied."
~ James Bryce
"Not to seek ease, but to... wrest triumph from toil and risk."
'The work must be done; we cannot escape our responsibility; and if we are worth our salt, we
shall be glad of the chance to do the work ~ glad of the chance to show ourselves equal to one of
the great tasks set modem civilization."
- TR, "The Strenuous Life," April 1899
�December 16,198
\
\
MEMORANDUM FOR MICHAEL WALDMAN-FROM:
JOSH GOTTHEIME]
SUBJECT:
SOTU "NOW AND TtfEN" HIGHLIGHTS
Michael, I know that you asked for 5 facts, but I think these are all worth reviewing...
Economy
GNP expanded 467% between 1900 and 1998 (based on 3rd quarter numbers)
GDP per man-hour
1900: $1.29
1996: $13.50
Personal Income
1900 - average annual income $412/yr
1998 - average annual income $520/week
Population
We could emphasize the domestic population explosion over the last century - either for DC, the
region, or the West Coast...
Mid-Atlantic Region - more than doubled:
1900- 15,454,678
1990-37,602,286
Washington. DC ~ nearly tripled:
1900-278,718
1990-606,900
Pacific Division - nearly twenty times:
1900-2,634,285
1990-39,127,306
Cause of Death
Approximately the same number of Americans died of influenza in 1900 as die of cancer today...
\
�Causes of death. 1900
Major cardiovascular renal diseases - 345/100,000
Influenza, pneumonia - 202.2
TB -194.4 (1997 -16,237 deaths total = 6/100,000)
Gastritis, duodenitis, colitis - 142.7
Diphtheria - 40.3
Measles -13.3
Causes of death, 1990
Heart disease - 281.3/100,000
Cancer -205.2
Cerebrovascular disease - 58.9
Chronic obstructive pulmonary disease - 39
fflV -16.2
Homicide - 9.6
Life Expectancy
1900-47.3 yrs
1994-75.7 yrs
Transportation/Freedom to Move - No Longer Constrained by Our Borders
Today we have the freedom to travel beyond our place of birth to settle, to see family, or to
attend a meeting...
Travel Time - California tp New York;
1900-4 days by train
199Z-6 hoursby plane
Changing Residence
1900 - 79 percent of population lived in the state in which they were bom
1998 - today the average American will move 12 times in a lifetime
[Today, there are no borders...global commerce (the web), the concorde, etc.]
"We are on the eve of a great development of centrifugal possibilities...a city of pedestrians is
...limited by a radius of about four miles, and that a horse-using city may grow out to seven or
eight...And is it too much, therefore, to expect that the available area for even the common daily
toilers of the great city of the year 2000, or earlier, will have a radius very much larger even than
that?"- HG Wells, c. 1901.
�Immigration/Diversity
Immigration - numbers have increased slightly ~ but the composition has changed.
1900 - 95% of the immigrants werefromEurope. 9 people werefromIndia — 4%fromAsia.
1996 - 16% of the immigrants werefromEurope. 5% werefromIndia -- 34% werefromAsia.
Exposure to different cultures/people...
Today in Wichita, KA, there are 137 ethnic restaurants. We could compare this number to 1900 •
- or do the same for any major city.
Poverty
New York
1900 - '/i people under poverty level
1990 - 19.3 percent under poverty level
Innovation
"The world, they say, changed more [technologically] between the year 1800 and the year 1900
than it had done in the previous 500 years..." -- H.G. Wells, June 1899
We could say: There's been more innovation in each decade of the twentieth century than in the
entire nineteenth century [ck].
�
Dublin Core
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Title
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Michael Waldman
Description
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<p>Michael Waldman was Assistant to the President and Director of Speechwriting from 1995-1999. His responsibilities were writing and editing nearly 2,000 speeches, which included four State of the Union speeches and two Inaugural Addresses. From 1993 -1995 he served as Special Assistant to the President for Policy Coordination.</p>
<p>The collection generally consists of copies of speeches and speech drafts, talking points, memoranda, background material, correspondence, reports, handwritten notes, articles, clippings, and presidential schedules. A large volume of this collection was for the State of the Union speeches. Many of the speech drafts are heavily annotated with additions or deletions. There are a lot of articles and clippings in this collection.</p>
<p>Due to the size of this collection it has been divided into two segments. Use links below for access to the individual segments:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+1">Segment One</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+2">Segment Two</a></p>
Creator
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Michael Waldman
Office of Speechwriting
Date
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1993-1999
Identifier
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2006-0469-F
Extent
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Segment One contains 1071 folders in 72 boxes.
Segment Two contains 868 folders in 66 boxes.
Provenance
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Clinton Presidential Records: White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Still Image
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Original Format
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paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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SOTU [State of the Union] 1999 Planning book [Binder] [2]
Creator
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Office of Speechwriting
Michael Waldman
Is Part Of
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Box 44
<a href="http://clinton.presidentiallibraries.us/items/show/36403"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
Identifier
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2006-0469-F Segment 1
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Medium
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Preservation-Reproduction-Reference
Date Created
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6/3/2015
Source
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7763296
42-t-7763296-20060469F-Seg1-044-006-2015