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FOIA Number:
2006-0469-F (2)
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:
14459
FoiderlD:
Folder Title:
Memos from Cabinet Secretaries
Stack:
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Shelf:
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92
4
5
2
�Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
AND TYPE
DATE
SUBJECT/TITLE
RESTRICTION
001. memo
Andrew Cuomo to Erskine Bowles; RE: Presidential Initiatives in the
FY 1999 Budget (3 pages)
12/15/1997
P5
002. memo
Robert Rubin to Michael Waldman; RE: State of the Union (2 pages)
01/12/1998
P5
003. memo
Frederico Pena to Ann Lewis; RE: State of the Union Address:
Electricity Competition Initiative (2 pages)
01/05/1998
P5
004. memo
Andrew Cuomo to Erskine Bowles; RE: State of the Union (2 pages)
12/04/1997
P5
005. memo
Bill Galston to Michael Waldman; RE: 1998 State of the Union and
Phone number (4 pages)
10/23/1997
P6/b(6)
006. memo
Bill Galston to the President; RE: 1998 State of the Union (4 pages)
10/23/1997
P5
007. memo
Bill Galston to the President; RE: 1998 State of the Union (4 pages)
10/23/1997
P5
008a. fax
Henry Cisneros to Michael Waldman; RE: State of the Union (2
pages)
n.d.
P5
008b. memo
Henry Cisneros to President Clinton; RE: Ideas for the President's
State of the Union Address (2 pages)
12/19/1997
P5
009a. memo
Kent Markus to Michael Waldman; RE: DOJ SOTU Thoughts &
Phone number (2 pages)
01/24/1998
P5, P6/b(6)
009b. memo
Kent Markus to Michael Waldman; RE: DOJ SOTU Thoughts &
Phone number (2 pages)
01/24/1998
P5, P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
OA/Box Number:
14459
FOLDER TITLE:
Memos from Cabinet Secretaries
2006-0469-F
dbl939
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)|
Freedom of Information Act - (5 U.S.C. 552(b)|
PI National Security Classified Information |(a)(l) of the PRA|
P2 Relating to the appointment to Federal office [(a)(2) of the PRA|
P3 Release would violate a Federal statute 1(a)(3) of the PRA|
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA|
P5 Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA|
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(a)(6) of the PRA|
b(l) National security classified information 1(b)(1) of the FOIA)
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA)
b(3) Release would violate a Federal statute [(b)(3) of the FOIA)
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA)
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA)
b(8) Release would disclose information concerning the regulation of
financial institutions 1(b)(8) of the FOIA|
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�JAN.23.1998
7:22PM
NO.413
P.2/4
THE SECRETARY OF TRANSPORTATION
WAQHINQTON, O.C.
20590
January 23, 1998
Following up on the discussion a o t the State-of-the-Union at the Cabinet meeting today, I
bu
am sending the attached passages linking transportation with several different thanes, for
possible inclusion in the speech.
I believe that any referencetothe need to pass transportation legislation is likelytoyield
strong bipartisan applause.
�JAN.23.1998
7:22PM
NO.413
P.3/4
Transportation / NEXTEA References for the 1998 State of the Union Address
Preparing for the 2 1ST century:
When I've talked about building bridges to the 21st century, it's usually been in symbolic terms,
but we also need literal bridges - and roads, and transit lines. And when we invest strategically
in transportation, we're building the reliable, modem network America needs to be competitive
in the new century's global economy.
Balancing the budget'
Even as we've closed the budget deficit, we've closed the investment deficit, building the roads
and bridges and transit lines America needs to be competitive. This year I ask Congress to build
on this record of success, and pass my proposal to modernize our transportation system while
making it safer and cleaner for our children.
Bipartisanship:
There are many things we can agree on. Americans rightfully expect us to come together, across
party lines, to continue our historic efforts to rebuild America's highways and transit systems. I
call on Congress to act quickly to pass my proposal to increase investment in roads, bridges and
mass transit, and to do it in a way that is good for the environment and good for our
communities.
One America:
Transportation is about more than concrete, asphalt, and steel: it's the tie that binds, bringing U
S
closer as a people. When we invest in roads and bridges and transit lines, we enable people to
travel safely to work, to school, to stores, and to recreation areas; we empower them to make the
most of the opportunities our nation offers.
Environment:
Economic growth doesn't have to come at the expense of clean air and clean water. I urge
Congress to finish the work it began last year, and pass a transportation bill that will let us keep
rebuilding our roads and bridges, while also investing in the technologies and environmental
projects ~ light rail transit systems, bicycle paths, and scenic byways - that make our
communities healthier and better places to live.
January 23, 1998
�JAN.23.1998
7:22PM
NO.413
P.4/4
Welfare to Work:
One of the biggest barriers facing people moving from welfare rolls to payrolls is finding
transportation to jobs, to training, and to child care. Few welfare recipients own cars, but most
new jobs are in the suburbs, far from where they live. I urge Congress to pass my proposal to
help people travel to these jobs while they're making the transition from welfare to work.
Urban:
Transportation is the lifeline of commerce, and rebuilding our roads, bridges, and transit systems
is the key to bringing jobs, and people, back to our cities. I urge Congress to pass a new
transportation bill that gives our communities the investment they need - and to have the bill on
my desk before these funds run out at the end of April.
Communities.
Every community knows that its prosperity and quality of life is linked to investments in good
transportation. To keep America moving, I call on Congress to pass my proposal for a new
transportation bill, with record levels of funding that will benefit every state, and to have the bill
on my desk before these funds run out at the end of April.
Gifts to the future for the Millennium:
Nearly half a century ago, our parents' generation had the vision to create the Interstate highway
system, which has not only strengthened our economy and our quality of life, but is the envy of
the world. Now, this generation has the opportunity to create for future generations a 21st century
transportation system which will continue to strengthen the economy and improve our quality of
life by linking us community to community and nation to nation, creating opportunity for all
Americans. As the last such measure of the 20th century, I urge Congress to demonstrate its
vision and pass a transportation bill providing bold, new opportunities for our future generations.
January 23, 199$
�THE
WHITE
HOUSE
�USDA
Friday, January 23, 1998
GREG FRAZIER
Chief of Staff
To Kris Balderston The 6 pages of background that follow include the news release we issued today about the
implementation of HACCP Monday.
This month is also the five year anniversary of the Jack-in-the-Box episode, the incident that
spurred the Administration to propose and adopt HACCP.
While I do not know the themes of the speech, I suggest that mention of this fits with a
discussion of any number of themes strengthening families - the new food safety system will strengthen the confidence
our families have in the safety and wholesomeness of our food supply;
investing in health - this new system will enable us to stem the outbreak of food borne
diseases, which affect thousands and cost millions and millions each year;
moving to the 2 1 " century - it replaces a century-old inspection system based on
seeing, touching, and smelling with one based on scientific testing and validation;
reinvention of government - the new system replaces the old command and control
system with one in which government and the private sector work together to adapt
tailored solutions to individual plants and problems; and
appropriate role of government - while we move to a smaller, leaner government, we
must maintain those functions of government that individuals cannot do for themselves
such as inspecting their food.
Nonetheless, more needs doing, which is why the President's budget includes a significant
investment in food safety - which has already been made public.
a
We also strongly believe that we need additional enforcement tools - the legislation we
announced last summer in the wake of the Hudson Foods episode and which is discussed in the
attached release and talking points. Thus, in addition to mentioning the implementation of
HACCP, I recommend an expression of support for the legislation "Starting this new system is a remarkable achievement, but we need to do
more. We need to make sure USDA has the tools it needs to enforce the new
inspection system, which is why I call on Congress to act on the food
safety enforcement legislation we sent to it last fall^
�01/23/98
15:39 FAX 202 690 2119
USDA OSEC
(2]003'
Secretary of Agriculture Dan Glickman today hailed the implementation of the Clinton
Administration's new meat and poultry inspection system, called Hazard Analysis and Critical
Control Points (HACCP). Effective January 26, 1997, the 312 largest meat and poultry plants
will operate under this new system, which will improve food safety and better protect American
consumers from foodborne illness. These plants account for approximately 75 percent of the live
meat and poultry slaughtered in the United States.
"This new system is a revolutionary improvement over the old approach", Glickman said,
who noted that the meat and poultry inspection system had not been fundamentally changed for
over 90 years. "Rather than catching problems after they occur, we will now focus on preventing
problems in the first place. Instead of relying only on the sight, touch, and smell of our
inspectors, we will use science-based controls and microbiological testing directly targeted at
reducing harmful bacteria like E. coli Ol57:H7 and salmonella."
Under the new system, each plant will operate under a HACCP (pronounced hassip) plan
designed to prevent contamination of meat or poultry. In addition, plants will test for generic E.
Coli and use the test results to monitor the effectiveness of their HACCP plan. Food Safety and
Inspection Service (FSIS) inspectors will conduct tests to ensure that plants are reducing the
amount of meat or poultry that is contaminated with salmonella.
"This is a truly historic and fundamental change in our approach to food safety",
Glickman said, noting that this is the first time the Department of Agriculture (USDA) will
require plants to reduce bacterial contamination of meat or poultry. "We are committed to
making this new system work as effectively as possible for American consumers."
Rather than a one-size-fits all approach, each plant has designed its own plan to meet
USDA food safety standards. With this new flexibility, plants are also assigned greater
responsibility for producing safe food. USDA inspectors, however, will continue to play an
essential role in ensuring food safety.
Glickman said, "Oar inspectors have a fundamental role ensuring food safety for
consumers under this new system." Inspectors will continue to visually inspect carcasses,
document food safety violations, verify a plant's compliance with its HACCP plant, and to take
direct action when necessary to prevent contaminated product from reaching consumers.
"This new system will be effective if we stick to this fundamental philosophy-industry is
responsible for producing safe food, and USDA's job is to hold industry accountable when they
do not," Glickman said. "I've met with a number industry leaders, and I'm confident that they
are fully prepared to implement this new system. But I also made it very clear to them that
USDA will not hesitate to shut down plants that do not take their food safety responsibilities
seriously and repeatedly fail to meet food safety standards."
The first phase of the new system went into effect in January of 1997. Since that time,
FSIS has temporarily shut down operations in 20 plants for failing to meet these new standards,
an increase of over 200 percent from the 6 plants that FSIS shut down in 1996.
�^ • ' 2 ^ 9 0 ^ 2 1 1 9 ' ^ U S D A bskc
^
•
^
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Glickman also noted the new food safety system will be even more effective with
additional enforcement tools, noting that the Clinton Administration has asked Congress for
authority to fine companies for violations of food safety standards. "We can fine circuses for
mistreating elephants, and we can fine people who sell undersized potatoes and people who don't
keep the right paperwork on watermelons. But we can't fine companies that violate food safety
standards- That's just wrong, and we are working hard to convince Congress to give us this
important power."
While the new system will improve food safety and reduce foodborne illness, Glickman
also cautioned consumers to handle meat and poultry safely. "This new system is a great victory
for American consumers, but there is no silver bullet that guarantees food safety," Glickman said.
"Consumers must continue to follow safe meat and poultry handling labels."
The new meat and poultry inspection system is an historic milestone in the Clinton
Administration's commitment to protecting American families by improving food safety. Other
significant accompUshments include:
0
4
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01/23/98 15 : 40 FAX 202 690 2119
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USDA OSEC
- - ' ^ ^ ^ ^ •- • • ^ ^
Clinton Administration Accomplishments in Food Safety
October, 1997. President announces new initiative to enhance FDA oversight over
imported foods and develop guidance on good agricultural and manufacturing practices
for fruits and vegetables.
October, 1997. Administration announces public-private partnership to promote food
safety education, that includes the "Fight B AC" campaign .
May, 1997. President announces comprehensive new initiative to improve the safety of
the nation's food supply - "Food Safety from Farm to Table"-- detailing a $43 million
food safety program, including measures to improve surveillance, outbreak response,
education, and research.
January, 1997- President announces new Early-Warning System to gather critical
scientific data to help stop food-borne disease outbreaks quickly and to improve
prevention systems.
January, 1997. Administration requires generic E.Coli testing for all meat and poultry
slaughter plants and Sanitation Standard Operating Procedures.
August, 1996. President signs Safe Drinking Water Act of 1996. The law requires
drinking water systems to protect against dangerous contaminants like crytosporidiuro,
and gives people the right to know about contaminants in their tap water.
August, 1996. President signs Food Quality Protection Act of 1996, which streamlines
regulation of pesticides by FDA and EPA and puts important new public-health
protections in place, especially for children.
July, 1996. President announces new regulations that modernize the nation's meat and
poultry inspection system for the first time in 90 years. The HACCP systems approach
emphasizes science-based controls and microbiological testing directly targeted at E. coli
0157:H7 and Salmonella.
December, 1995. Administration issues new rules to ensure the safety of seafood using
the HACCP regulatory approachOctober, 1994. Administration declares E.coli O 157:H7 an adulterant in raw ground
beef and initiates a nationwide sampling program in federally inspected plants and retail
stores that process ground beef.
March, 1994. Administration requires safe handling and cooking instructional labels on
raw meat and poultry products.
�01/23/98
. I S . - W F A T ^ O ^ ^00 V l t g
t
!
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" USPA TORF -"
"JITA
" '© 'o oe '
TALKING POINTS FOR MEDIA ROUNDTABLE
Thank you for coming today to talk about HACCP implementation. This is an
historic event for USDA, for industry, and for the American public. I want to make
several points and then open things up for questions.
REVOLUTIONARY CHANGES FROM THE OLD SYSTEM
•
Focus is on preventing problems in the first place, instead of catching problems
after they occur
•
Using science and microbiological testing directly targeted at reducing dangerous
pathogens, instead of only relying on inspectors senses
Plants test for generic e-coli and use the test results to monitor their HACCP plans
USDA tests for salmonella
Plants are required to reduce amount of meat and poultry that is contaminated with
salmonella. This is perhaps the most fundamental change.
USDA used to say pathogens were naturally occurring.
Now we are saying that plants must reduce the amount of contamination.
COMMITMENT TO MAKING HACCP WORK
We are committed to making HACCP work. There are going to be some bumps in
the road, but we are going to stay the course.
We will be successful if we stick to the fundamental regulatory philosophy that
undergirds HACCP. That is, industry is responsible for producing safe food, and
our job is to hold them accountable for meeting their responsibilities.
I emphasized this point when I met with industry leaders. They MUST take their
responsibility seriously, EVERYDAY. And we WILL hold them accountable when
they do not
ROLE OF INSPECTORS UNDER HACCP
•
Rather than a one-size-fits all approach, each plant has designed its own plan to
meet USDA food safety standards. This is not a top-down, command and control
approach. Regulatory reinvention.
�With this newflexibility,plants are also assigned greater responsibility for
producing safe foodUSDA inspectors, however, will continue to play an essential role in ensuring food
safety.
Inspectors will continue to visually inspect carcasses, document food safety
violations, verify a plant's compliance with its HACCP plant, and to take direct
action when necessary to prevent contaminated product from reaching consumers.
These actions will form the basis for shutting plants down by suspending inspection
if a plant is repeatedly failing to meet food safety standards.
FAIR BUT FIRM ENFORCEMENT
We are going to be FAIR, and we are going to use COMMON SENSE. But we are
also going to be FIRM.
We do not want to shut plants down. But we can and will if their SYSTEMS do not
meet these new food safety standards. This is also a fundamental change from the
old way of doing business.
Under the old system, inspectors would impose corrective actions when there were
violations and prevent unsafe food from reaching consumers, but FSIS would allow
plants to accumulate large number of deficiencies without taking action to suspend
inspection and shut plants downUnder the new food safety system, FSIS has a new tool to stop operations where
there is a pattern of deficiencies and insist on preventive measures to improve food
safety before a plant can reopen.
1997 illustrates this difference. FSIS has shut down 20 plants since the first phase of
this new system went into effect in January of 1997. This is an increase of over 200
percentfromthe 6 plants that FSIS shut down in 1996.
I want to make one final point about enforcement. No one wants to shut a plant
down, but we can and we will where a plant's food safety system is not working.
But I think CIVIL PENALTIES would help us address problems sooner rather than
later and in a manner commensurate with the circumstances.
�^
^
^
^
(loos
LEADERSHIP AND OPEN COMMUNICATION
•
I challenged industry, producers and consumers to provide leadership as we
implement this new system.
Change of any kind can be difficult, and this is a MAJOR culture change, for
industry and for the agency.
We were successful in developing this new regulation because we actively and
openly engaged all viewpoints.
We are going to continue that approach as we proceed to implement this new rule.
�12/15/97 17:20
NO.713
HUD OFC OF THE SECRETRRY - 94565709
>
P002
U. S . D E P A R T M E N T O F HOUSING AND U R B A N D E V E L O P M E N T
WASHINGTON, O.C. 20410-0001
December 15,1997
THE SECRETARY
PERSONAL AND-CONFIDENTIAL
MEMORANDUM FOR:
Erskine Bowles
CC:
DETERMINED TO BE AN
ADMINISTRATIVE MARKING
INITIALS:DATE: t latin
Gene Sperling
Bruce Reed
Michael Waldman
Paul Begala
Sidney Blumenthal
Rahm Emanuel
Ron Klain
Ann Lewis
Sylvia Mathews
Minyon Moore
John Podesta
Franklin Raines
FROM: Andrew
SUBJECT: Presidential Initiatives in the FY 1999 Budget
As you beginfinalizingrecommendationsfor the Presidential Priority Reserve, I would
like to emphasize several key initiatives.
Pursuant to requests for the reserve, we reduced the number of HUD initiatives
significantly. We urge you to give utmost consideration to the remaining initiatives as
FY 1999 Presidential initiatives funded out of the reserve.
These initiatives could be cast as an Urban Agenda or a One America Opportunity
Agenda, or a Community Empowerment Agenda. There are two components: economic
opportunity and homeownership opportunities.
I believe that these initiativesframedin a national perspective are the natural and
necessary follow to the Race Initiative. An economic opportunity thrust is also a prime
�1,2/15/97
17:20
HUD OFC OF THE SECRETARY • 94565709
>
NO.713
component of the President's "new economy" vision. The President's recent highly
successful trip to the South Bronx could be recalled in The State of the Union to manifest
his principles: community involvement, bottom-up, ownership, opportunity, partnership
and possibility.
ECONOMIC OPPORTUNITY
•
Empowerment Zone (EZ) Grants for Urban Zones. Recent discussions have
focused on EZ funding being at $150 million in FY 1999 and in the 10 outyears from
the mandatory side of the budget. While HUD supports this approach, a ten-vear
installment term is too long to allow a zone to actually operate. We believe five-year
installments are the maximum for an effective program.
•
Economic Development Initiative (EDI)/Community Empowerment Fund. As
you know, HUD requested one billion dollars for EDI/Community Empowerment
Fund. We have identified $300-400 million in HUD's base through recent efforts.
This combined with an additional $600 million from the Presidential Priority Reserve
would provide communities with a significant investment tool and commence the
development of a secondary market for private sector loans. As the President heard in
the Bronx last week, "Do for lagging American commuhities what we did for Europe
after the War: provide low-interest loans."
•
HUD Vouchers for Welfare to Work. We have already been working with your
staffs in obtaining 50,000 vouchers for this effort and continue to emphasize its
importance.
HOMEOWNERSHIP OPPORTUNITIES
•
Homeownership Zones. We strongly support your interest in a major
homeownership program. However, we do not recommend terminating HUD's
proven homeownership efforts only to begin other efforts. The HUD Homeownership
Zones program enables cities to undertake large-scale, single-family developments in
inner-city neighborhoods. These developments assist and attract both low- and
moderate-income families to city neighborhoods. This program allows for a
comprehensive approach to homeownership with a wide array of eligible activities
such as downpayment assistance, housing counseling, and rehabilitation. It stimulates
public-private partnerships, increases homeownership, leverages private investment
and creates jobs. The Passback rejected HUD's FY 1999 request for $50 million and
zeroed out the program. I strongly urge consideration of Homeownership Zones
for $50 million in F Y 1999.
Homeownership Vouchers. This proposal would provide qualified "graduates" of
public and assisted housing (e.g., working families with a good rent-paying record)
the opportunity to buy a home using Section 8 vouchers and up to $5,000 in subsidy
P003
�12/15/97
17:20
HUD OFC OF THE SECRETPRY • 94565709
>
NO.713 P004
(or a low-interest loan) for downpayment and closing cost assistance. We would also
have a model "continuum" of housing policy for the first time. Assistance for 25,000
homeowners would cost $245 million in FY 1999. The program would stress
"opportunity" for public housing residents and be a nice complement to our
"responsibility" plank: One Strike and You 're Out. It would also be making more
public housing units available by moving people out - an added bonus.
•
Officer Next Door Program. This proposal would build upon the early success of
our program to assist police officers to move into revitalization and high-crime, innercity neighborhoods. A one-time appropriation of $30 million would enable 1,500
police officers to anchor neighborhood safety efforts.
•
Fair Housing. President Clinton has directed HUD to double Fair Housing
enforcement actions. This pledge has aheady had a great impact on furthering civil
rights. 1998 marks the 30* anniversary of the Fair Housing Act; an additional $7
million will allow us to take even more actions through a highly-targeted task force.
Thank you for your consideration to these important initiatives. My staff and I are
available to work with you as you finalize the new initiatives recommendations.
�U;'08/98
TUE 13:53 FAl 202 990 3100
USDA/R1CS
T H c SECPCTAirr o r A C P I C U L T U H C
Wednesday, December 23,1997
MEMORANDUM FOR THE PRESIDENT
From:
Secretary Dan Glickman
Subject
Quid Nutridon Rcauthorizanon/School Breakfast Inidative
I urge you to consider including a school breakfast inidauve as part of your State of die Union
message. While I briefly oudined the issue ar ifae budget appeal on Friday December 19,1997,
I want to explain the proposal in more depth and outline how it dovetails with your child care and
education iniriaiivcs.
The nation's major child nutrition programs expire in 1998, and require leauthorizaiion. Not since
the Carter Administraaon has a President had the opportunity to set forth his coimnionent to provide
school meals to millions of children. Democrats in both bouses of Congress, including Senators
Daschle, Johnson and Reed of Rhode Island, and Congressman Miller of California, are preparing
major iniuarives to augment the school nutrition programs, with particular emphasis on providing
free school breakfast for most eicmemary school children.
What we are proposing is school breakfast at no charge for all children is pre-kindergarten through
third grade. 25 million children currently participate in die school lunch program, and approrimately
14 millionreceivefree or reduced price school lunches. By comparison, ihe carrent school bzeakfast
program only reaches 7 miUion children each day. In schools where breatfast is available, only 20%
of children eat breakfast and more than 85% of these children are low ioccrmc. Wc estimaie thai
large aurabcrs of middle and upper-middle income also do not ear breakfast ar home or at school
By making school breakfast available at no cost to all children in pre-kindergarten through third
grade, we will remove the stigma that accompanies earing breakfast at school, and wc will be able
�.Cl^oe/fl*
TUE 13:53 FAJ 20: 890 3100
MEMORANDUM FOR THE PRESIDEJO*
From Secretary Dan Gllclonu oa School BreaJcfnt
December23.1977 -Page2
to reach additional at-risk children.
«•«jman thai 600.000 additional children will panidpate
in school breakfast the fire vey ™d one million hv the third _vear. The cost of the initiaove I
proposed for grades pre-kindergarten through third grades is S217 million for the firat year and
12 billion over 5 years while the congressional initiative (kindergarten through six grades) will cost
nearly double that amount.
Why do this? What is its impact? Recentresearchby the State of Minnesota and the Harvard/
Kellogg Hunger Breakfast Project shows that students who cat school breakfast have improved
marh grades,reducedhyperactivity, decreased absences and tardyrates,and improved behavior.
The researchers observed that the students displayed fewer signs of depression, aoxicry,
hyperactivity, and other behavioral problems therefore tbey were more inclined to leam. Two new
studies which auppoit these findings will be published in Pediniria in January and in the Journal
of the Ajneriam Academy of Child and Adalzscent Psychiaxry in February. The iniuarive is
comparible with thefindingsof the White House Conferences on the Brain. Child Care, and cither
education initiaiivcs; itreinforcesraybelief that the school breakfast program should be seen as an
education program, not a welfare program.
Let me emphasize that point: This is an education and child development initiadvc, not an income
security proposal. We provide every child books, desks, and cransponation not as a form of income
supplement, but to enhance their education and that is what this proposal is about. What is missing
from our educarion initiatives now is die foundation upon which the value of these other investments
rest: A good breakfast so our children can be the besr smdenis possible.
I want to see the Administraaon get credit for a good idea that I believe Congress will act on.
Even if we need to phase-in the initiative LO fit budget constraints, we can do so and sull get oedit
for the idea- We need to be leading and notfallowingon this initiative. We will also have the
support of the food and education advocacy groups in the process, as well as a number of groups who
represent labor and low and middle income working Americans.
the \ W Congress, the Republican aaaci on the school lunch program was devastaiing for them.
Some believe that the attack was the most lethal attack on the Republican agenda, largely because
food for children has strong, middle class appeal. A school breakfast iniriaiive has the same
�MEMORANDUM FOR THE PRESIDENT
Firam Seercuiy D«i CUcknan on School Bcofcfas
December 23, 1997-Page 3
pragnmxnatic and polidcal advantages. We have the opportunity to tnake a bold statement of policy
concerning che direct lelarionships beiween child nntrition and learning and the importance of school
ouoidon programs, pardcularly school breakfasL
I undemand che competing budget pressures, but this is an outsianding opporcunicy to leave an
imprint and legacy like the Truman Adminisoadon did in 1947 when it first proposed the school
lunch piugram.
�vffi/
THE SECRETARY OF COMMERCE
Washington, O.C. 20230
January 16, 1998 (approved by Secretary Daley by phone in Prague)
MEMORANDUM FOR
JANET YELLEN
FROM:
WILLIAM M. DALEY
SUBJECT.
The State of the Union Address and
Presidential Initiatives on Economic Statistics
The President's FY 1999 budget includes support for two initiatives on economic statistics that I
know interest you and, in my own view, could make compelling points for his State of the Union
address.
Ours is a time of such rapid and fundamental economic and social change, and some of our most
basic statistical measures have not keep pace with these changes. First and most important, we
must be certain that our GDP statistics capture all the value of information age industries. As you
have noted in your forthcoming Economic Report of the President, a significant and persistent
discrepancy has emerged between the size of the economy as measured by the product accounts
and the income accounts. As a result, we cannot say for certain just how fast the American
economy has been growing, how much the real incomes of American families haverisen,or how
much productivity is increasing. The only way to resolve these issues is to provide additional
support for the Bureau of Economic Analysis and the Census Bureau to study the discrepancy and
close it. The FY 1999 budget proposes to increase the BEA's appropriation from $42.7 million
to $48.4 million and provide an additional $9.4 million for GDP-related analysis by the economic
division of Census.
Second, it's time to modernize our poverty measures. As you know, we still use an official
measure developed in the 1960s, which excludes both the benefits of in-kind assistance and the
effects of taxes and tax credits. As a result, the nation's official poverty measure is unaffected
when we change the food stamps program, or housing assistance, or the Earned Income Tax
Credit. In 1995, a National Academy of Sciences panel recommended a number of changes to
update the poverty measure, and the FY 1999 budget includes additional funds for the Census
Bureau to use available data sources to produce an estimate more consistent with the Academy's
approach. The budget also includes support for the Census Bureau to expand the sample for the
Survey on Income and Program Participation, which tracks in-kind benefits and taxes, to produce
more accurate income and poverty estimates in the future.
We should do our best to ensure that the American people know about and appreciate these
initiatives. I hope you will join me in urging the President to include them in both the State of the
Union and the Administration's public budget presentations to the Hill.
cc:
The Honorable Franklin Raines, Gene Sperling, John Hilley, and Michael Waldman
�U.S. DEPARTMENT O F L A B O R
SECRETARY OF LABOR
WASHINGTON, D.C.
JAN I 3 1 9
98
MEMORANDUM FOR ERSKINE BOWLES
FROM:
ALEXIS
SUBJECT:
STATE OF THE UNION ADDRESS
The Department o f Labor i s p u r s u i n g a number o f i n i t i a t i v e s t h a t
support t h e P r e s i d e n t ' s commitment t o b u i l d i n g a s t r o n g e r and
more c o m p e t i t i v e w o r k f o r c e and p r o v i d i n g s e c u r i t y and o p p o r t u n i t y
f o r a l l workers.
This memorandum p r o v i d e s some examples t h a t I
propose you c o n s i d e r f o r i n c l u s i o n i n t h e P r e s i d e n t ' s S t a t e o f
t h e Union Address.
L i f e l o n g Learning and Economic Opportunity
GI B i l l / J o b T r a i n i n g Reform: Basic r e f o r m o f the w o r k f o r c e
development system has been a major p r i o r i t y o f t h e P r e s i d e n t
f o r t h e p a s t 3 years. Last year, t h i s e f f o r t r e s u l t e d i n a
b i l l passed by t h e House and another pending i n t h e Senate
t h a t meet t h e P r e s i d e n t ' s p r i m a r y requirements f o r r e f o r m as
expressed i n h i s G.I. b i l l p r i n c i p l e s .
I t i s important that
a f i n a l b i l l c o n t a i n s t h e p r o v i s i o n i n c l u d e d i n t h e Senate b i l l
a u t h o r i z i n g the Youth O p p o r t u n i t y Grant i n i t i a t i v e t o p r o v i d e
j o b o p p o r t u n i t i e s f o r young people i n - a r e a s o f h i g h p o v e r t y .
Last y e a r J c h a l l e n g e d the Congress t o pass l e g i s l a t i o n
t o r e f o r m our N a t i o n ' s employment and t r a i n i n g system.
You rose t o my c h a l l e n g e by p a s s i n g a s t r o n g b i l l i n
the House and i n t r o d u c i n g a s i m i l a r b i l l i n the Senate.
These b i l l s p r o v i d e workers w i t h good consumer i n f o r m a t i o n and the a b i l i t y t o use t h i s i n f o r m a t i o n t o choose
t r a i n i n g b e s t f o r them through a One-Stop d e l i v e r y system
t h a t i n t e g r a t e s e x i s t i n g programs.
But our j o b i s not
complete.
I renew my c h a l l e n g e t o you - - t o complete
l e g i s l a t i o n , i n c l u d i n g a u t h o r i z a t i o n o f the Youth
O p p o r t u n i t i e s i n i t i a t i v e t o p r o v i d e j o b s f o r young p e o p l e
i n h i g h p o v e r t y a r e a s , t h a t I can s i g n e a r l y t h i s year.
WORKING FOR AMERICA'S WORKFORCE
�C e r t i f i c a t i o n and L i c e n s i n g o f M i l i t a r y Personnel:
Military
personnel l e a v i n g t h e s e r v i c e o f t e n f i n d t h a t c i v i l i a n employers
w i l l n o t c r e d i t them f o r t h e t r a i n i n g and e x p e r i e n c e t h e y have
r e c e i v e d i n t h e m i l i t a r y . As a r e s u l t , t h e y face l o n g e r than
necessary p e r i o d s o f unemployment and underemployment. The
Labor Department i s w o r k i n g on a p l a n t o a s s i s t m i l i t a r y
p e r s o n n e l i n o b t a i n i n g l i c e n s e s and c e r t i f i c a t i o n s w h i l e i n
the m i l i t a r y so t h e y can make a q u i c k e r and b e t t e r t r a n s i t i o n
into c i v i l i a n l i f e .
The state of our union is strong
because
veterans
of the
armed forces
continue
to add to our national
well-being
as
productive
members of the civilian
work force.
Military
training
should be the foundation
for many good,
career
building
jobs.
We must continue
to work with
business,
unions,
the employment
and training
community,
and
federal
and state
agencies
to make sure that the skills
acquired
in the armed forces
can be put to use. in civilian jobs
without
requiring
veterans
to undergo unnecessary,
and
often
expensive
and time consuming,
certification,
licensing,
and retraining
programs.
W e l f a r e t o Work Challenge: The Welfare t o Work Challenge t o
a s s i s t the hardest-to-employ welfare r e c i p i e n t s f i n d jobs,
enacted t h i s year, i s e s s e n t i a l t o t h e success o f w e l f a r e
reform.
I t s e f f e c t i v e n e s s , however, depends on t h e f o r m a t i o n
o f p a r t n e r s h i p s which w i l l a l l o w l e v e r a g i n g o f a d d i t i o n a l
resources a t t h e l o c a l l e v e l .
I am pleased that Congress joined
with me in passing
the
Welfare
to Work Challenge
grant program
to create
job
opportunities
for those making the d i f f i c u l t
transition
from welfare
to work.
Passage,
however,
is just
a
starting point.
Success
will require
partnerships
between
State
and local
governments,
local
employers,
and local
religious
and community organizations -- like those we have forged
among the Federal
agencies
involved
in this
effort.
Our
economy is generating,
more than 2 million
new jobs
each
year.
We must assure
that welfare
recipients
get the
skills
and other
support
they need to move into
these jobs -- and
that when they do, they receive
the protections
and
benefits
available
to other
workers.
�Workplace P r o t e c t i o n s and F a i r Wages f o r Working F a m i l i e s
Expansion o f t h e Family and M e d i c a l Leave A c t : The P r e s i d e n t
has r e p e a t e d l y s t a t e d t h a t we need t o expand t h e f a m i l y and
m e d i c a l leave law. The Department i s c u r r e n t l y w o r k i n g w i t h
White House s t a f f on a l t e r n a t i v e s t o expand t h e FMLA t h a t w i l l
h e l p w o r k i n g p a r e n t s w i t h newborn and newly adopted c h i l d r e n .
Vie need to do more to help workers
balance
the
demands
of their
jobs and their
families
by expanding
the
Family
and Medical
Leave Act to allow workers
up to 24 weeks o f f .
Those families
who face a severe
medical
crisis
or
those
parents
who wish to stay at home longer
with their
newborn
or newly adopted
child
should be able to take the time o f f
they need without
worrying
that they will lose their
jobs.
C h i l d Care: Many w o r k i n g p a r e n t s f i n d t h a t c h i l d care i s
poor q u a l i t y , i n s h o r t supply, o r u n a f f o r d a b l e . As a r e s u l t ,
t h e i r p r o d u c t i v i t y a t work s u f f e r s and t h e l e a r n i n g , h e a l t h ,
and s a f e t y o f t h e i r c h i l d r e n may be a t r i s k . One way t o address
these problems i s t o p r o v i d e t r a i n i n g f o r c h i l d care workers.
As p a r t o f t h e October 1997 White House conference on c h i l d care,
the Labor Department announced a p l a n t o expand a n a t i o n a l l y
r e c o g n i z e d a p p r e n t i c e s h i p program which g i v e s c h i l d care workers
i n West V i r g i n i a classroom i n s t r u c t i o n and s u p e r v i s e d o n - t h e - j o b
training.
Working families
deserve
accessible,
affordable
and
quality
child
care.
I challenge
Congress
to work with me to fund
scholarships
and training
for child
care providers
so
that
quality
child
care will be
available.
F i g h t i n g I l l e g a l and E x p l o i t a t i v e C h i l d Labor: There a r e more
than 120 m i l l i o n c h i l d r e n between t h e ages o f 5 and 14 w o r k i n g
f u l l - t i m e t h r o u g h o u t t h e w o r l d . Though t h e y a l l a r e n o t w o r k i n g
i n v i o l a t i o n o f t h e i r c o u n t r i e s ' laws, m i l l i o n s a r e w o r k i n g i n
unsafe o r unacceptable c o n d i t i o n s .
DOL i s w o r k i n g w i t h NEC s t a f f
on a p r o p o s a l t o address i n t e r n a t i o n a l c h i l d l a b o r abuses t h a t
c o u l d be announced i n t h e S t a t e o f t h e Union.
D o m e s t i c a l l y , we
have made c o n s i d e r a b l e p r o g r e s s i n r e d u c i n g i l l e g a l c h i l d l a b o r .
However, problems remain — p a r t i c u l a r l y i n a g r i c u l t u r e where
w o r k i n g f a m i l i e s face a d d i t i o n a l problems r e s u l t i n g from
inadequate c h i l d care and f r e q u e n t r e l o c a t i o n t h a t make i t
d i f f i c u l t f o r t h e i r c h i l d r e n t o complete h i g h s c h o o l .
The children
of this nation
and the world are our
legacy.
We must protect
them, nurture
them, and prepare
them
for
the future.
We cannot do this i f they are working
long
hours instead
of attending
school,
or if they
are
endangering
their
lives
working in dangerous
occupations.
�Pife must make sure working parentshave access
to
good,
affordable
child
care and that their
children
receive
the education
they need to build
successful
futures.
Increase the Federal Minimum Wage: Periodic increases i n the
minimum wage are necessary t o ensure t h a t the minimum wage keeps
pace w i t h the cost o f l i v i n g and t o honor the value o f work. We
took an important f i r s t step by passing the 1996 increase but the
value o f the minimum wage i s s t i l l w e l l below average l e v e l s f o r
the m a j o r i t y of the p e r i o d since the 1950s. Another increase i s
necessary t o help workers who play by the rules and go t o work,
every day earn a l i v i n g wage.
We need to make sure that all work is treated
with
dignity,
and the starting
place
is to make work pay.
Low-wage workers,
those just
entering
the
workforce,
and
especially
those moving from welfare
to
work,
must be able to earn enough to feed and clothe
their
families
and to reinforce
the importance
of
staying
in the workforce.
We should
not be satisfied
with
bare
subsistence
incomes
for working
families.
Full-time
wokers supporting
families
should be able to l i f t themselves
out of poverty.
To do that,
we need to
continue
the e f f o r t begun several
years ago to ensure
that
the
minimum wage is a livable
wage by increasing
the
minimum
wage.
Increasing Access and Equity t o the Unemployment Insurance
Program f o r Low-Wage Workers: The UI system needs t o meet
the challenges o f a new economy where n o n - t r a d i t i o n a l work
arrangements have evolved. I n a d d i t i o n t o p r o v i d i n g UI benef i t s , i t i s the entry p o i n t f o r other programs, such as Trade
Readjustment Allowances i n the Trade Adjustment Assistance
program. Over time, w i t h changes i n the economy and changes
i n work arrangements, the percentage of workers, p a r t i c u l a r l y
low-wage and p a r t - t i m e workers, who should be served by the
program, has declined. DOL has been working w i t h the NEC on
options t o expand coverage t o workers, p a r t i c u l a r l y low wage
workers, who are unemployed through no f a u l t o f t h e i r own.
The UI program has been a big economic
help to
millions
of workers
who lose their
jobs each year.
Now is the
time
to make sure this important
program continues
to
assist
workers
into
the new century.
I am proposing
that,
in
partnership
with the States,
we begin a broad
dialogue
with businesses
and workers
to make sure this
program
works for today's
economy.
In addition,
my budget
request
anticipates
proposed
legislation
and a modest increase
in
funds
to immediately
start
accomplishing
3 goals:
(1) to
make the UI program more accessible
to and fairer
for
unemployed
(especially
low-wage)
workers;
(2) to
improve
�state administration
operations;
and (3) to assure
the
availability
of benefits
to workers
in the event
of a
recession.
Many Americans
believe
that there is no
longer
job security
for them.
We need to make sure
that
our economic
security
system
can respond
to the
changes
in the way we now work.
Trade A d j u s t m e n t A s s i s t a n c e f o r D i s l o c a t e d Workers:
As we
move i n t o a g l o b a l economy t h e r e i s a v a s t p o t e n t i a l f o r j o b
growth and economic expansion due t o i n t e r n a t i o n a l t r a d e . As
we move f o r w a r d , we must ensure t h a t no one i s l e f t b e h i n d .
The A d m i n i s t r a t i o n has proposed programs t o a s s i s t workers
d i s l o c a t e d by t r a d e t o f i n d j o b s and a c q u i r e t h e s k i l l s t h e y
need t o compete i n t h e new economy. Continued commitment t o
these programs s h o u l d be i n c l u d e d i n any d i s c u s s i o n o f Fast
Track.
In those instances
where workers
are adversely
affected
by expanded
trade,
we must help them to find new jobs
or
acquire
the necessary
skills
to succeed
in the
global
economy.
I am committed
to increasing
funding
and
expanding coverage
of e f f e c t i v e worker adjustment
programs
that
provide
specialized
assistance
to trade-impacted
workers
and their
communities.
Safe and H e a l t h y Workplaces: To underscore h i s commitment t o
workplace h e a l t h and s a f e t y , t h e P r e s i d e n t c o u l d h i g h l i g h t t h e
r e c e n t a c t i o n s o f a v i c t i m o f a severe workplace i n j u r y and
i n v i t e him t o a t t e n d t h e S t a t e o f t h e Union address. John
C a b a l l e r o , from V i c t o r i a , Texas, r e c e n t l y was awarded compens a t o r y and p u n i t i v e damages i n a j u r y v e r d i c t a f t e r a workplace
e x p l o s i o n n e a r l y k i l l e d him. However, he t u r n e d down t h e $30
m i l l i o n i n p u n i t i v e damages i n exchange f o r a commitment t h a t
h i s employer would implement a s a f e t y and h e a l t h program.
Mr. C a b a l l e r o took t h i s a c t i o n so t h a t "no one e l s e [would]
have t o go t h r o u g h t h e p a i n , s u f f e r i n g , and d i s f i g u r e m e n t t h a t
[he] went though."
Providing Equal Opportunity to a l l Workers
D i s a b i l i t i e s E x e c u t i v e Order: The Domestic P o l i c y C o u n c i l i s
c o n s i d e r i n g a P r e s i d e n t i a l E x e c u t i v e Order t o e s t a b l i s h t h e
N a t i o n a l Task Force on t h e Employment o f A d u l t s w i t h
D i s a b i l i t i e s , which would propose a c o o r d i n a t e d and a g g r e s s i v e
f e d e r a l p o l i c y t o reduce employment b a r r i e r s f o r persons w i t h
disabilities.
The Task Force would be_ comprised o f Cabinet
agencies d i r e c t l y i n v o l v e d w i t h t h i s i s s u e , p o s s i b l y headed by
the S e c r e t a r y o f Labor. Announcement o f t h e E x e c u t i v e Order
w i l l draw a t t e n t i o n t o t h e employment problems o f persons w i t h
severe d i s a b i l i t i e s and demonstrate t h e A d m i n i s t r a t i o n ' s
commitment t o a d d r e s s i n g them.
�J am proud to announce
that I have just
signed
an
Executive
Order establishing
a National
Task Force charged
with
creating
a coordinated
and aggressive
federal
policy
to
increase
employment
for persons
with disabilities.
Persons
with severe
disabilities
work at only one-third
the
rate
of those with non-severe
disabilities
and those with no
disability,
often
because
they are restricted
to the home.
Such restrictions,
however,
should not deprive
people
of
the opportunity
to work.
New technology
has made it
increasingly
feasible
to extend
meaningful
employment
to
a significant
proportion
of persons
with severe
disabilities.
The Task Force,
comprised
of key members of my
cabinet
and headed by Labor Secretary
Herman, will
be
charged
with taking
action
to better
coordinate
and
direct
federal
programs
to achieve
this
goal.
P r o t e c t i o n Against Employment D i s c r i m i n a t i o n based on Genetic
I n f o r m a t i o n : Genetic i n f o r m a t i o n has the p o t e n t i a l t o i d e n t i f y
hidden genetic disorders and spur e a r l y treatment. However,
i t can also be used t o "discriminate against i n d i v i d u a l s i n the
workplace and i n other areas of t h e i r l i v e s .
In additional
fear o f d i s c r i m i n a t i o n may prevent i n d i v i d u a l s who could b e n e f i t
from advances i n genetic research from t a k i n g advantage of them.
Science
must always respect
the dignity
of every
American.
None of our discoveries
should be used to label
or
discriminate
against
any group or individual.
Scientific
advances
in unlocking
the secrets
of our genetic
code can help
to
identify
and treat
hidden
genetic
disorders.
However,
we
must ensure
that they will not be used to
discriminate
against
individuals
in the workplace.
I look forward
to
working
with Congress
to advance legislation
that will
allow
full
use of the benefits
of genetic
research
by
protecting
against
workplace
discrimination.
Economic Security for the Future
P r o t e c t i n g Pensions and Making Them More Portable: American
workers have a r i g h t t o expect the promises t o provide pension
s e c u r i t y made by employers t o be kept.- I n a d d i t i o n , as the needs
of the American economy continue t o change causing more workers
to experience j o b changes over t h e i r working l i v e s , workers need
the f l e x i b i l i t y o f a p o r t a b l e pension.
Over the last 5 years, we have made significant progress in
protecting
pension
plans
and making them more portable.
In
1994, I signed
legislation
which stabilized
the funding
of
pension
plans
covering
40 million
people
and saved
8.5
million
people's
pension
plans
that were at risk.
But we
need better
tools
to assure
that money set aside
for
retirement
is secure
and that people
can take their
pensions
�and 401 (k) plans
with them i f
Legislation
to close
a critical
are audited,
that was proposed
as soon as
possible.
they move to a new
employer.
gap in the way pension
funds
last
year,
should be
enacted
Expanding R e t i r e m e n t Income O p p o r t u n i t i e s : A l t h o u g h t h e r e has
been success w i t h r e s p e c t t o expanding r e t i r e m e n t income
o p p o r t u n i t i e s by s i m p l i f y i n g pension law and expanding IRAs,
more work i s needed i n these areas.
Many s m a l l businesses
do n o t o f f e r p e n s i o n p l a n s t o t h e i r employees d e s p i t e r e c e n t
enactment o f laws t h a t s i m p l i f y employers' r e q u i r e m e n t s f o r
e s t a b l i s h i n g pension p l a n s . And many workers do n o t t a k e
advantage o f t h e o p p o r t u n i t i e s t h a t a r e a v a i l a b l e t o them.
We have moved slowly
but surely
over the last
five
years
to make.it
easier
for people
to get pensions.
But
the
security
of an employer-provided
pension
is still
beyond
the grasp of nearly
one half
of our workforce
-particularly
for women.
We must continue
our e f f o r t s to
expand
pension
coverage
by making it easier
for employers
to
provide
them. In addition, to help workers take advantage
of the opportunities
that are available
to them, we will
redouble
our public
education
e f f o r t s . As part of
this
e f f o r t , I will convene
a White House Summit to
advance
public
understanding
of the critical
importance
of
retirement
savings.
�DEPARTMENT OF THE TREASURY
WASHINGTON. D.C.
SECRETARY OF THE TREASURY
January 12, 1998
MEMORANDUM FOR MICHAEL WALDMAN
FROM:
Robert E. R u b i n ^ ^ ^ ^
SUBJECT: State of the Union
There are two Treasury-specific issues that I wanted to bring to your attention for consideration
in the State of the Union:
1) IRS reform
2) Reauthorization of the Community Development Financial Institutions (CDFI) Fund
1) IRS Reform
Purpose: This issue will likely be the principal point of attack for the Republicans next year. With
the State of the Union, we have a real opportunity to coopt the issue to some extent.
Background: The Administration is making significant progress to further improve the IRS, but an
enormous challenge lies ahead. We were able to work with the House last year to produce a
bipartisan bill with widespread support. We would like to urge the Senate to pass a similar bill as
soon as possible to eliminate the uncertainty surrounding the future of the IRS and give
Commissioner Rossotti the tools that he needs to reform the agency.
Also, the Senate Finance Committee is holding a hearing on IRS restructuring the day after the
State of the Union. Commissioner Rossotti and I will testify, and would be able to reinforce a
presidential message of reform.
Suggested Language:
•
In recent months, we have heard about unacceptable instances of taxpayer abuse at the
ERS. We must do a better job of protecting taxpayer rights.
•
My Administration is working hard to reform the IRS. We just brought in an experienced
businessman to run the IRS. We instituted Problem Solving Days to help taxpayers
resolve longstanding problems with the IRS. This spring, we will launch the first Citizen
Advocacy Panel, which will act as an independent advocate for taxpayers.
•
But we must do more. We helped pass the IRS reform legislation in the House. I expect
the Senate to do the same, and have a bill that I can sign on my desk by April 15.
�•
I urge Congress not to delay. We must have an IRS that works for American taxpayers.
2) CDFI Reauthorization
Purpose: The State of the Union should also include a section devoted to the Administration's
strong record of helping to bring all Americans into the economic mainstream. I firmly believe, as
I know the President believes, that this country will fall short of its national economic potential
unless we give all Americans the opportunity to enter the economic mainstream.
In addition to other initiatives, I believe that the President should consider discussing the creation
of the Community Development Financial Institutions (CDFI) Fund, which is helping to revitalize
distressed communities across the United States. This was a promise made during the 1992
campaign, and a promise kept once the President took office. In addition, this program faces
reauthorization this year.
Background: The Fund has completed two rounds of awards and will be launching a third round
this year. The FY 99 budget includes a request for $125 million for CDFI. The CDFI Fund's
authorization runs out this year, and we will be making CDFI reauthorization a top legislative
priority. This effort will be helped significantly if the President calls for reauthorization ~ to
continue the hard work of building a nationwide network of community development financial
institutions — in the State of the Union address.
Suggested Language;
•
When I first ran for President, I called for the creation of a nationwide network of
community developmentfinancialinstitutions, so that every community in America could
get the access to capital that is the lifeblood of growth and opportunity.
•
Today, that pledge is being turned into reality in communities all across our nation. And
to make sure we can continue that growth, I'm going to ask Congress to fund Treasury's
CDFI Fund at $125 million for next year, and to extend the Fund's authorization, so that
no good business idea or promising entrepreneur fails simply because they can't get a loan.
CC:
Erskine Bowles
Gene Sperling
Sylvia Mathews
Rahm Emanuel
Paul Begala
Doug Sosnik
Ann Lewis
Sidney Blumenthal
Bruce Reed
�The Secretary of Energy
Washington, DC 20585
January 5, 1998
MEMORANDUM TO ANN LEWIS
SYLVIA MATHEWS
KATIE MCGINTY
JOHN PODESTA
GENE SPERLING
MICHAEL WALDMAN
FROM:
FEDERICO PENA
• J
.
•
l ^ J
Re:
State of the Union Address: Electricity Competition Initiative
I strongly recommend that the Administration's electricity competition/restructuring initiative be
included as a key domestic policy component of the President's 1998 State of the Union
Address. Such an announcement would be an appropriate follow-up to the President's October
22nd commitment to pursue a "... bold plan for electricity restructuring." Allowing customers to
choose their electricity suppliers will reduce costs, benefit consumers, strengthen the economy,
and improve environmental quality. The benefits include :
1. $20 Billion in Annual Savings. Our estimates, which are conservative, are that
increased competition due to restructuring will reduce electric bills by $20 billion a year
when fully implemented. This is like giving consumers a $20 billion tax cut. Total
annual savings to a typical family of four would be about $200 a year. The Federal
Government is the largest purchaser of electricity in the world. By lowering prices, we
will save taxpayers' dollars for other important investments.
2. Significant Reductions in Greenhouse Gas Emissions. We estimate that a welldesigned restructuring proposal will reduce carbon emissions between 23 and 89 million
metric tons in 2010 through a combination of legislative and market mechanisms.
Competitive forces will create a more efficient, leaner, and cleaner industry. Competition
will also provide an opportunity for environmentally minded consumers to choose
"green power"-- electricity from renewable sources — in the marketplace. Finally, the
Administration's proposal contains provisions to guarantee continued investments in
renewables and energy efficiency above and beyond what the market will provide.
Restructuring is Consistent with the President's Principles
Restructuring will advance the President's economic objectives. It is both pro-competition and
pro-business. It will lower ratepayers' costs by reducing longstanding barriers to competition.
At the same time, it will provide flexibility through (state) implementation and ensure reliability
®
Printed on recycled paper
�and universal service. As discussed above, it will also validate the Administration's message
that progressive economic policy can be consistent with, and supportive of, environmental
protection.
The Restructuring Proposal is Ripe for Action
The interagency electricity restructuring group convened by the National Economic Council has
reached consensus on the following key issues:
•
•
•
•
•
•
support for state-managed retail competition;
principles underlying recovery of stranded costs by utilities;
policies to assure the reliability of the national electricity grid;
a renewable "portfolio standard" to guarantee a minimum level of renewable electricity
generation;
a public benefit fund to support low-income electricity assistance, energy efficiency,
renewable technology and consumer education; and,
uniform electricity labeling requirements to promote customer choice and support the
creation of a "green power"market.
Conclusion
While I look forward, under the NEC's leadership, to an early resolution of the few remaining
issues, the basic framework of the Administration's proposal has been established. The State of
the Union Address will provided an opportunity for the President to preview the important
elements of the proposal; establish an Administration presence in this major, evolving debate;
and take credit for the overwhelming economic benefit that will accrue to the nation under
restructuring.
�12/04/97
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»
FAX
NO.093
Date:
Number of pages including cover sheet
Fhone:
Phone:
(202) 708-0417
Fax phone:
Fax phone:
(202)708-2467
CC:
REMARKS:
rgeni
Q For your review
•
Reply ASAP
•
Please comment
DETEKiVnisco TO L E AN
ADMINISTRATIVE MARKING
INITIALS:DATE:
001
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NO.093
D02
U. S . D E P A R T M E N T O F H O U S I N G AND U R B A N D E V E L O P M E N T
W A S H I N O T O N , D.C.
20<uO-OOOl
December^ 1997
THE SECRETARY
Personal and-CunlllleniidMEMORANDUM
TO:
Erskine Bowles
CC:
DETERMINED TO DE AN
ADMINISTRATIVE MARKING
INITIALS: Oft DATE: IIM I/
^
-OW-P
C^y
1
Gene Sperling
Bruce Reed
Sidney Blumenthal
Paul Begala
Rahm Emanuel
Sylvia Mathews
Ron Klain
Ann Lewis
Michael Waldman
John Podesta
FR: Andrew Cuomo
0L
RE: State of the Union
Please allow me to argue a simple point: there must be an "urban agenda" piece - as a
poUcy cornerstone of the One America Initiative - in the State of the Union. Here are the seven
urgent reasons supporting this point:
1) Media elites and opinion makers live in cities, own businesses in cities and associate
with the more traditional democratic issues. I have traveled the country and spoken
extensively with editorial boards and they are clearly waiting to see if there will be an
urban agenda as part of the second term. As you know, the editors and publishers of
the Nation's leading newspapers - and the top people at the networks - are often
deeply involved in the civic life of their cities. Absent an urban agenda in this State
of the Union, I am concerned that they will criticize the Administration on this point;
if there is one, I believe that they will readily view it as a critical part of the
President's legacy.
2) From the longer view as well, the extent of the agenda for cities and poor
communities will weigh in the President's long-term legacy.
�12/04/97
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NO.093
3) Embarking on an expanded effort in this challenging arena would be important
evidence of new energy for the second term.
4) It pre-empts Democrats in Congress on a progressive agenda.
5) The absence of an urban program in the State of the Union - given the challenges
posed by the passage of welfarereformand the steady and highly visible discussion in
past months on the Race Initiative - will be glaring.
6) As the President noted in releasing the June, 1997 State of the Cities Report, the
numbers are powerful. The economy is strong, but only 13 percent of new jobs are in
cities. As the President has argued, the new economy will not work unless every
American is brought along and given the tools to succeed - the opportunity for work
and decent housing. Yet, the growth of assisted housing has slopped. Because of
Congressional resistance, this is thefirsttime in history that we are not building
housing. Without expanded action, every other President, Democrat and Republican,
in boom or bust economies, since the creation of HUD, would have built more
housing than this Administration.
7) You cannot credibly address racial issues without an urban strategy. An expanded
empowerment agenda can be a lesson learnedfromthe One America dialogue and can
be the action item to complement and strengthen the dialogue. If the One America
Initiative is principally dialogue with a few scattered programs not directly and
explicitly linked to an urban agenda, few will believe that there is a solid policy
foundation underlying the Initiative.
I would urge three big new ideas as the centerpiece of such an "urban agenda" (those
words are important) focusing on the empowerment theme. If the word "urban" is objectionable,
I would suggest the One America Opportunity Agenda as a fall back. These ideas are ones that
could have the most immediate impact - and ones for which the President would get significant
credit, especially among the elite audience discussed above.
These three ideas (as well as the other items that follow) achieve the traditional
progressive goals we all support - opportunity for all, community, and fairness - through new
means - leveraging private sector investment, offering bottom-up, community-driven solutions
rather than Washington mandates, and building on mainstream values of family, hard work and
self-reliance. Together, these policy options offer a multi-issue approach to lifting the underclass
into productive work and ensuring the vitality of America's communities. In short, this is not
"your father's" urban agenda.
D03
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The One America Opportunity Agenda has three elements: jobs, housing and justice.
(1)
JOBS
Welfarereformrepresents a new challenge in creating jobs and linking welfare recipients to
work. The highest concentration of welfare recipients are found in inner-city areas where job
growth lags. This proposal would helpfillthe "jobs gap" in America's cities by fostering greater
private sector economic development by highly leveraging public funds.
Community Empowerment Fund. This public/private fund will invest in inner-city businesses
and create a secondary market for economic development loans. A secondary market for
economic development is exactly what the industry wants (a Fannie Mae for economic
development loans) and needs. The new fimd ("Eddie Mac") will "invest" in America but will
not be a handout. It is not business as usual because Eddie Mac will be a separate entity with
standardized underwriting and state of the art processing of private loans leveraged by public
funds. The fimd would be directed by a bipartisan board of business and community leaders, i.e..
Jack Kemp, Colin Powell, etc. Experience with HUD's existing Economic Development Loan
Program suggests that it is an effective method for providing jobs for welfare recipients. The
Community Empowerment Fund would help grow the "new economy" in areas currently underserved by the market by expanding and standardizing economic development lending. A one
billion dollar funding level would have a significant impact, although it could work with less.
(2) HOUSING AND HOMEOWNERSHIP
Our proposed housing/homeownership initiative has two components:
(a) Welfare to Work Vouchers and Homeownership Vouchers. The 50,000 new portable
"welfare to work" housing vouchere will allow welfarerecipientsto move closer to job
opportunities (see separate background if needed). Hie public housing homeownership vouchers
would provide - for thefirsttimein the history of public housing - qualified graduates of public
and assisted housing (e.g. working families who have proven themselves to be good neighbors
with a three year record of on time rent paying) the opportunity to buy a home using a Section 8
voucher and a $5,000 down payment subsidy. This effort could help some 25,000 public
housing residents become homeowners over a two year period helping them off assistance.
(b) Raise FHA Loan Limits to Make FHA Work for Middle-Class America. Historically,
FHA was vital to middle-class America. As recently as 1970, FHA mortgage insurance
accounted for more than a sixth of the dollar volume of all mortgage origination's. Today, FHA
accounts for little more than one-twelfth of the volume and less than a third of FHA borrowers
have incomes above the area median. Raising the FHA loan limits will restore the parity FHA
once held with Fanny Am and Freddie Mac, while generatingrevenuesneeded to support other
components of the homeownership agenda. In addition,revampingFHA's home improvement
P04
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4
loan products will expand FHA's presence in this growing market segment and increase the role
of FHA in revitalizing the aging housing stock of older, inner-city and suburban neighborhoods.
(3) JUSTICE
1998 marks The SO'" anniversary of the 1968 Fair Housing Act. As we can celebrate the progress
made in the fair housing arena - and in civil rights - we must alsofinishthe job. Fair Housing
actions have emerged as a centerpiece bf the President's One America Initiative.
A fair housing initiative for the 21" century could include: a new system of Metropolitan Area
Testing to root out the remaining vestiges of housing discrimination; greater funding to meet the
President's pledge to double Fair Housing Enforcement actions; announcement of the One
America Broker program, where HUD has partnered with the National Association of Realtors
to develop a training and certification of real estate agents and brokers committed to serving the
rapidly growing minority and immigrant home buyer markets - allowing Realtors, for the first
time ever, to be officially certified as "One America Brokers"; and Enhancing Mobility in the
Section 8 housing program,tomake it easier for recipients to move to neighborhoods with
more job opportunities, better schools and less crime.
Other urban agenda ideas include:
Round I I Empowerment Zones. While the President mentioned this in the last State of the
Union, the Administration did not receive the funding needed to make this a reality and should
press again on this issue. The early resultsfromthefirstround of EZs are impressive. EZs have
leveraged billions of dollars in private investments and created thousands of jobs in some of the
nation's most distressed inner city neighborhoods. Without expanded spending, the Round II
Zones will have a hard time matching the success of Round I Zones.
Education Opportunity Centers. HUD's pilot Neighborhood Network program currently
places computer learning centers in privately-owned assisted housing developments. An
expanded program would open computer learning centers in public housing developments to
support youth education and job training programs to help lift people off welfare. These learning
sites - a technology oasis in the desert of public housing - would be a cheap investment to
ensure that the next generation is self-sufficient and not stuck in the dead end of public housing.
Homeownership Opportunity Fund. For a relatively small amount of money ($11 million in
credit subsidy) HUD could develop a loan guarantee, program, modeled on the successful
CDBG/Section 108 guarantee, to allow local and state governments to leverage current HOME
funds with private moneys to fund large scale, affordable homeownership developments in
distressed communities.
One Strike and You're Out. The efforts of the millions of law-abiding residents of public and
assisted housing to rid their developments of crime and violence merit our support. Additional
D05
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funding is needed to expand and strengthen One Strike.
The Officer Next Door. Building on the current HUD program, we propose to double the
number of police officers participating in this highly successful initiative. To do this, HUD will
partner with private sector mortgage bankers and lenders to obtain preferential mortgage loan
rates for participating officers. To ensure that the program promotes the revitalization of
distressed communities, HUD could also offer - in an expansion of the program - deeply
discounted home improvement loans to encourage acquisition and rehab of older homes.
Now Is The Time for an Urban Opportunity Agenda
The housing and community development successes of the first four years are a solid foundation
for an expanded urban agenda. But expand the urban agenda we must. The effort to address
divisive racial issues demands a renewed emphasis on greater opportunities for all. Similarly, an
urban opportunity agenda is an essential ingredient in any effort to make welfare reform work.
The time isrightfor the President to launch a comprehensive second term urban agenda and
HUD stands poised to implement this agenda.
At the President's direction, over the past year HUD, has moved aggressively to reform itself
and crack down on waste,fraudand abuse. We have laid the groundwork for the President to
argue that the Nation now has a credible vehicle to deliver an urban opportunity agenda.
The case: the American people are prepared to provide equal opportunity (not equal outcomes)
to those less fortunate. However, before proposing any new solutions, they expect government
to make existing programs work first.
For the Clinton Administration, that meant cleaning up the one agency specifically tasked with
canying out an urban opportunity agenda - and proving to the American taxpayer that their
money can be well spent. The Administration has done that: HUD has seen a 500 percent
increase in actions against bad landlords resulting in millions of dollars of penalties; a 25 percent
reduction in staff; a sharprisein enforcement efforts taken to stem housing discriminadon; and a
crackdown onfraudsdesigned torip-offhomeowners and senior citizens. HUD, once the poster
child of bloated bureaucracy, has become the poster child for reinvention.
Now - with a cleaned up and reinvigorated urban opportunity agency - we can say we've heard
the American people, we have put our own house in order and are ready to offer new solutions
and greater opportunity for the oftentimes forgotten people and cities of America.
D06
�THE WHITE HOUSE
WAS HIN GTO N
November 25, 1997
Information
MEMORANDUM FOR THE PRESIDENT
FROM:
MICHAEL WALDMAN
frj
SUBJECT:
ATTACHED MEMORANDUM
FROM BILL GALSTON
At Sylvia's suggestion, we have begun to solicit ideas from outside scholars and advisers,
earlier than usual, for the State-of-the-Union.
Bill Galston asked that this memorandum be forwarded to you. It was written before the
withdrawal of fast track, but he says that he would only make these points more emphatically.
Other memoranda from an array of outside advisers will be compiled and sent to you in
December.
We will be meeting with you next week to discuss State-of-the-Union themes and
process.
�Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
AND TYPE
005. memo
SUBJECT/TITLE
DATE
Bill Galston to Michael Waldman; RE: 1998 State of the Union and
Phone number (4 pages)
10/23/1997
RESTRICTION
P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
OA/Box Number:
14459
FOLDER TITLE:
Memos from Cabinet Secretaries
2006-0469-F
dbl939
RESTRICTION CODES
Presidential Records Act -144 U.S.C. 2204(a)]
Freedom of Information Act -15 U.S.C. 552(b)l
PI National Security Classified Information 1(a)(1) of the PRA]
P2 Relating to the appointment to Federal office 1(a)(2) of the PRA]
P3 Release would violate a Federal statute 1(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information 1(a)(4) of the PRA]
P5 Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy 1(a)(6) of the PRA]
b(l) National security classified information 1(b)(1) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA]
b(3) Release would violate a Federal statute 1(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information 1(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy 1(b)(6) of the FOIA)
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the FOIA)
b(8) Release would disclose information concerning the regulation of
financial institutions 1(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�ixi-i^-iey?
09:02
THE CHHSE RT BETHESDft
3016540697
P.01
O c t o b e r 2 3 , 1997
TO:
M i c h a e l Waldman ( F A X : 2 0 2 / 4 5 6 - 5 7 0 9 )
FROM:
B i l l Galston
SUBJ:
Memo f o r t h e P r e s i d e n t
I n response to your request, here i s a memo f o r the President on
p o s s i b l e themes and proposals for the 1998 State of the Union
address. I've a l s o enclosed a d r a f t of a forthcoming a r t i c l e on
S o c i a l Security reform. Because I've referred t o t h i s a r t i c l e i n
the memo, I ' d be g r a t e f u l i f you passed i t on t o the President a s
an attachaent to the memo.
I ' l l be out of town on Friday, back Friday night, and i n and out
a l l weekend. My home number i s
; my o f f i c e number
()
61
(which i s where I can be found on weekdays and where I r e c e i v e
voice mail messages a t a l l times) i s 301/405-6347.
Clinton Library Photocopy
�Withdrawal/Redaction Marker
^
Clinton Library
DOCUMENT NO.
AND TYPE
006. memo
SUBJECT/TITLE
DATE
Bill Galston to the President; RE: 1998 State of the Union (4 pages)
10/23/1997
RESTRICTION
P5
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
OA/Box Number:
14459
FOLDER TITLE:
Memos from Cabinet Secretaries
2006-0469-F
dbl939
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - |5 U.S.C. 552(b)|
PI National Security Classified Information 1(a)(1) of the PRA]
P2 Relating to the appointment to Federal office 1(a)(2) of the PRA]
P3 Release would violate a Federal statute 1(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information 1(a)(4) of the PRA)
P5 Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy 1(a)(6) of the PRA]
b(l) National security classified information 1(b)(1) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA)
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information 1(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy 1(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions 1(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�1X1-24-1997
U'H:U5
THE CHftSE AT BETHESDH
311116540697
P. 06
WHAT THE SOCIAL SECURITY DEBATE SHOULD BE ABOUT
William A. Galston
Multiple
Challenges
Over t h e p a s t s i x decades, the U n i t e d S t a t e s has b u i l t i t s own
d i s t i n c t i v e system o f s o c i a l insurance and p r o t e c t i o n f o r i t s
e l d e r l y c i t i z e n s . As a d i r e c t r e s u l t , t e n s o f m i l l i o n s o f
Americans have enjoyed h e a l t h , s e c u r i t y , and independence. B u t
t o d a y , t h e c o r n e r s t o n e s o f t h i s s y s t e m — S o c i a l S e c u r i t y and
Medicare--are under i n t e n s e f i s c a l , demographic, and ( i n t h e case
of Medicare) t e c h n o l o g i c a l pressure.
M o d e r n i z i n g and s t a b i l i z i n g these programs f o r f u t u r e g e n e r a t i o n s
i s perhaps P r e s i d e n t C l i n t o n ' s g r e a t e s t r e m a i n i n g domestic p o l i c y
c h a l l e n g e . He has t h e o p p o r t u n i t y and ( I b e l i e v e ) t h e
r e s p o n s i b i l i t y t o c a t a l y z e a p u b l i c d i a l o g u e on t h e b e s t ways o f
a t t a i n i n g these o b j e c t i v e s . That d i a l o g u e c o u l d y i e l d t h e
C l i n t o n a d m i n i s t r a t i o n ' s most s i g n i f i c a n t and e n d u r i n g domestic
l e g a c y . But i f i t i s t o succeed, the P r e s i d e n t must l e a d i t .
The new S o c i a l S e c u r i t y Commissioner, Ken A p f e l , r e c e n t l y s t a t e d
observed t h a t t h e coming debate over S o c i a l S e c u r i t y " w i l l t e s t
t h i s n a t i o n — t e s t i t s v a l u e s and what we s t a n d f o r . " That i s
c l e a r l y c o r r e c t , and an i m p o r t a n t c o u n t e r w e i g h t t o t h o s e who see
t h i s i s s u e i n narrow f i s c a l o r a c t u a r i a l terms.
But t h i s debate
w i l l a l s o t e s t our c a p a c i t y f o r responding t o changing c o n d i t i o n s
by f i n d i n g new ways o f r e a l i z i n g e n d u r i n g v a l u e s . T h i s w i l l , i n
t u r n , c h a l l e n g e everyone t o d i s t i n g u i s h more c l e a r l y between
means and ends, t o c o n s i d e r new ideas on t h e i r m e r i t s i n a s p i r i t
of hope r a t h e r t h a n o f f e a r , t o a v o i d t h e r e f l e x i v e p o l i t i c a l
r h e t o r i c t h a t t u r n s every r e f o r m p r o p o s a l i n t o a p l o t t o " g u t "
the program, "shred" t h e s a f e t y n e t , and "abandon" t h e e l d e r l y .
Enduring Values
At t h e h e a r t o f S o c i a l S e c u r i t y i s a b a s i c s o c i a l compact: As
f e l l o w c i t i z e n s , we are connected t o one another i n ways t h a t
t r a n s c e n d i n d i v i d u a l c h o i c e . Our i n d i v i d u a l l i v e s w i l l t a k e v e r y
d i f f e r e n t courses. Nonetheless, i n some r e s p e c t s we agree t o
share a common f a t e .
S o c i a l S e c u r i t y r e s t s on r e c i p r o c i t y - - a balance between
i n d i v i d u a l and s o c i a l r e s p o n s i b i l i t y . A l l i n d i v i d u a l s must seek
g a i n f u l employment and, when w o r k i n g , c o n t r i b u t e t h e i r f a i r share
t o t h e system. I n r e t u r n , s o c i e t y h e l p s every worker a c h i e v e a
decent and secure r e t i r e m e n t , by p r o v i d i n g a reasonable ( n o t
n e c e s s a r i l y o p t i m a l ) r e t u r n on c o n t r i b u t i o n s .
But S o c i a l S e c u r i t y i s i n t e n d e d as a f o u n d a t i o n f o r - - n o t t h e
t o t a l i t y o f - - r e t i r e m e n t s e c u r i t y . A l l i n d i v i d u a l s are expected
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t o t a k e r e s p o n s i b i l i t y f o r b u i l d i n g on t h a t f o u n d a t i o n — b y
s a v i n g , i n v e s t i n g , or c o n t r i b u t i n g t o a p r i v a t e p e n s i o n p l a n when
available.
Of course, workers a t d i f f e r e n t income l e v e l s w i l l be
a b l e t o save p r i v a t e l y t o d i f f e r e n t degrees. S o c i a l
Security
n e c e s s a r i l y r e p r e s e n t s a l a r g e r share of r e t i r e m e n t income f o r
lower-income t h a n f o r higher-income workers--a f a c t t h a t our
s o c i e t y must t a k e i n t o account as we c o n s i d e r how t o honor our
c o n t i n u i n g r e s p o n s i b i l i t y t o one a n o t h e r .
Beyond r e c i p r o c i t y . S o c i a l S e c u r i t y r e f l e c t s a b a l a n c e between
what d i f f e r e n t i a t e s us as i n d i v i d u a l s and what we have i n common
w i t h our f e l l o w c i t i z e n s . One c o u l d imagine a r e t i r e m e n t system
i n w h i c h everyone r e c e i v e s the same b e n e f i t s , r e g a r d l e s s of t h e
s i z e o f one's c o n t r i b u t i o n s ; or a l t e r n a t i v e l y , a system i n which
b e n e f i t s are i n s t r i c t p r o p o r t i o n t o c o n t r i b u t i o n s .
Social
S e c u r i t y i s a t n e i t h e r extreme: wage e a r n e r s who make l a r g e r
c o n t r i b u t i o n s do r e c e i v e l a r g e r b e n e f i t s i n r e t i r e m e n t , but most
lower-income e a r n e r s r e c e i v e a h i g h e r r a t e o f r e t u r n on t h e i r
contributions.
That i s , t h e system's b e n e f i t s r e l a t i v e t o
c o n t r i b u t i o n s are p r o g r e s s i v e and pay s p e c i a l a t t e n t i o n t o the
needs o f lower-income workers. I n p a r t , t h i s r e f l e c t s t h e f a c t
t h a t we are n o t e n t i r e l y sure where we w i l l end up i n l i f e ' s
economic l o t t e r y ; we are w i l l i n g t o g i v e up some p o r t i o n o f
maximum r e t u r n s t o ensure o u r s e l v e s a g a i n s t the p o s s i b i l i t y t h a t
we w i l l r e t i r e on less f a v o r a b l e terms t h a n we now t h i n k most
likely.
S o c i a l S e c u r i t y i s mandatory. T h i s r e f l e c t s our shared
u n d e r s t a n d i n g t h a t l e f t t o t h e i r own d e v i c e s , n o t a l l i n d i v i d u a l s
would a d e q u a t e l y p r o v i d e f o r t h e i r r e t i r e m e n t - - a n d t h a t i t i s
t h u s a p p r o p r i a t e f o r government t o r e q u i r e a l l o f us t o do so.
The c l a s s i c image i s of Ulysses lashed t o the mast t o p r e v e n t the
S i r e n s ' c a l l from d i v e r t i n g him from h i s l o n g t e r m o b j e c t i v e .
(For the most p a r t , even the most severe c r i t i c s o f t h e c u r r e n t
s t r u c t u r e o f S o c i a l S e c u r i t y acknowledge t h a t i t i s necessary and
p r o p e r f o r t h e government t o r e q u i r e i n d i v i d u a l s t o p r o v i d e f o r
t h e i r retirement.)
S o c i a l S e c u r i t y a l s o r e f l e c t s our shared u n d e r s t a n d i n g t h a t i n a
modern s o c i e t y and economy, p u b l i c programs must p l a y a l e a d i n g
r o l e i n h e l p i n g us honor the B i b l i c a l i n j u n c t i o n t o honor our
p a r e n t s . N e i t h e r r e t i r e e s nor t h e i r working-age c h i l d r e n would
w i l l i n g l y r e t u r n t o an era when the e l d e r l y were d i r e c t l y
dependent on younger f a m i l y members. S o c i a l S e c u r i t y t h u s
r e p r e s e n t s a c o m b i n a t i o n of g e n e r a t i o n a l i n t e r d e p e n d e n c e ( t h r o u g h
the system's c o n t r i b u t o r y p r o v i s i o n s ) and
generational
independence ( f u n d s f l o w d i r e c t l y and r e l i a b l y from t h e
government t o i n d i v i d u a l s r a t h e r than from f a m i l y members a t
their discretion).
F i n a l l y , S o c i a l S e c u r i t y embodies the u n d e r s t a n d i n g t h a t
government has a r o l e t o p l a y i n c r e a t i n g and m a i n t a i n i n g a
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framework o f s t a b l e e x p e c t a t i o n s on which i n d i v i d u a l s can r e l y as
t h e y make t h e c h o i c e s t h a t d e f i n e t h e i r l i v e s . The p o i n t i s n o t
to e l i m i n a t e uncertainty altogether, but t o confine i t w i t h i n
r e a s o n a b l e bounds.
T h i s p r i n c i p l e imposes some c o n s t r a i n t s on programmatic changes
t h a t d i s r u p t stable expectations.
I n d i v i d u a l s s h o u l d n o t be
r e q u i r e d t o make changes t o which t h e y l a c k t h e t i m e and
resources t o a d j u s t . I t i s not only prudent, b u t also morally
necessary, t o s t r u c t u r e changes t o S o c i a l S e c u r i t y i n a way t h a t
does n o t a f f e c t workers a t o r near r e t i r e m e n t .
Changing Conditions
Key changes s i n c e S o c i a l S e c u r i t y was i n v e n t e d more than s i x
decades ago r e q u i r e us t o r e c o n s i d e r t h e means we use t o promote
a secure and decent r e t i r e m e n t f o r a l l Americans. L e t ' s b e g i n
w i t h demography. Americans a r e l i v i n g much l o n g e r than t h e y d i d
b e f o r e World War Two, and some a n a l y s t s b e l i e v e t h a t o u r
l o n g e v i t y w i l l i n c r e a s e a t an even more r a p i d r a t e i n coming
decades. The a g i n g o f t h e baby boom g e n e r a t i o n w i l l impose huge
new c o s t s , w h i c h b e g i n t o a c c e l e r a t e a f t e r t h e year 2010 and
w h i c h must be f i n a n c e d by t h e p a y r o l l t a x e s o f t h e much s m a l l e r
"baby b u s t " g e n e r a t i o n born between 1965 and I960And a system
designed i n an e r a w i t h low r a t e s o f d i v o r c e and female l a b o r
f o r c e p a r t i c i p a t i o n i s n o t w e l l s u i t e d t o a new r e l a i t y i n which
these r a t e s a r e f a r h i g h e r .
There have been i m p o r t a n t economic changes as w e l l . The s h i f t
from an i n d u s t r i a l t o a s e r v i c e economy reduces t h e importance o f
a t t r i b u t e s (such as p h y s i c a l s t r e n g t h and endurance) t h a t once
l i m i t e d t h e a b i l i t y o f aging Americans t o remain e f f e c t i v e i n t h e
workforce.
While p o l i c y m a k e r s i n t h e 1930s c o p i n g w i t h h i g h
unemployment sought ways o f p r o m o t i n g t h e r e t i r e m e n t o f a g i n g
workers t o make room f o r younger w o r k e r s , we now face t h e
o p p o s i t e problem: low unemployment, coupled w i t h a w o r k f o r c e
whose s i z e w i l l soon b e g i n t o s h r i n k r e l a t i v e t o t h e number o f
e l d e r l y Americans t o s u p p o r t i f c u r r e n t r e t i r e m e n t p a t t e r n s
continue.
And thanks i n l a r g e p a r t t o S o c i a l S e c u r i t y , t h e
economic c i r c u m s t a n c e s o f o l d e r Americans has improved
d r a m a t i c a l l y , b o t h a b s o l u t e l y and r e l a t i v e t o younger w o r k e r s .
S o c i a l S e c u r i t y i t s e l f i s changing. U n l i k e i n e a r l i e r decades,
t h e system i s now mature, w i t h workers c o n t r i b u t i n g f o r t h e i r
e n t i r e w o r k i n g l i v e s b e f o r e r e c e i v i n g b e n e f i t s . I t i s no longer
p o s s i b l e , as i t once was, f o r a l l workers t o r e c e i v e w i n d f a l l s r e t u r n s f a r i n excess o f c o n t r i b u t i o n s . Rates o f r e t u r n a r e
d e c l i n i n g f o r most workers, and a r e t u r n i n g n e g a t i v e f o r some.
The f a i l u r e o f t h e c e l e b r a t e d 1983 Greenspan Commission t o
d e l i v e r on i t s promise o f longterm f i n a n c i a l s t a b i l i z a t i o n has
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c a l l e d a t t e n t i o n t o t h e system's s t r u c t u r a l d e f i c i t , now p l a c e d
a t more t h a n 2 p e r c e n t o f t o t a l p a y r o l l over t h e n e x t 75 y e a r s .
The p o l i c y c o n t e x t i s changing as w e l l . Now, u n l i k e s i x t y o r
even t h i r t y y e a r s ago. S o c i a l S e c u r i t y issues must be addressed
i n tandem w i t h o t h e r l a r g e q u e s t i o n s a f f e c t i n g t h e e l d e r l y . I n
p a r t i c u l a r , t h e f i s c a l c r i s i s o f t h e Medicare system i s more
imminent, and f a r more acute.
I f , as many a n a l y s t s b e l i e v e .
M e d i c a r e cannot be s t a b i l i z e d w i t h o u t (among o t h e r changes) a
l a r g e i n f u s i o n o f new p u b l i c r e s o u r c e s , i t would be i r r e s p o n s i b l e
t o commit new t a x d o l l a r s t o S o c i a l S e c u r i t y w i t h o u t c a r e f u l l y
c o n s i d e r i n g t h e programmatic and p o l i t i c a l o p p o r t u n i t y c o s t s .
F i n a l l y , p u b l i c o p i n i o n i s s h i f t i n g . By t h i s I do n o t mean t h e
much-debated l o s s o f c o n f i d e n c e i n S o c i a l S e c u r i t y , b u t r a t h e r ;
an i n c r e a s e d u n d e r s t a n d i n g ( f u e l e d by t h e surge i n t h e s t o c k
m a r k e t ) o f t h e l o n g t e r m d i s p a r i t y between r e t u r n on e q u i t i e s as
opposed t o bonds; t h e r e a d i e r a v a i l a b i l i t y o f t i m e l y i n v e s t m e n t
i n f o r m a t i o n and e f f e c t i v e choices t o i n d i v i d u a l s , n o t j u s t l a r g e
i n s t i t u t i o n s ; and changing a t t i t u d e s ( e s p e c i a l l y among younger
workers) toward s e l f - r e l i a n c e , the appropriate r o l e f o r
i n d i v i d u a l c h o i c e , and a c c e p t a b l e l e v e l s o f r i s k i n r e t i r e m e n t
programs.
Conclusion
W i t h i n t h i s c o n t e x t o f changed c o n d i t i o n s and e n d u r i n g v a l u e s ,
t h e r e i s room f o r s i g n i f i c a n t debate about t h e s t e p s we s h o u l d
t a k e t o b o t h modernize and s t a b i l i z e S o c i a l S e c u r i t y . Should we
phase i n a s i g n i f i c a n t i n c r e a s e i n t h e r e t i r e m e n t age, over and
above t h e i n c r e a s e s contemplated i n c u r r e n t law? Should we
r e v e r s e l o n g s t a n d i n g i n c e n t i v e s f o r e a r l y r e t i r e m e n t , w h i c h have
reduced by more t h a n t w o - t h i r d s l a b o r f o r c e p a r t i c i p a t i o n r a t e s
by men o l d e r t h a n 65 over t h e p a s t h a l f - c e n t u r y ?
Should we make
t h e system f a i r e r f o r women who work o u t s i d e t h e home and f o r
younger f a m i l i e s w i t h dependent c h i l d r e n ? Should we i n c r e a s e t h e
r o l e f o r i n d i v i d u a l management o f r e t i r e m e n t s t r a t e g i e s ? Should
we i n v e s t new p u b l i c resources i n S o c i a l S e c u r i t y , o r r a t h e r
f o c u s on s t r u c t u r a l adjustments o f b e n e f i t s ?
These and many o t h e r q u e s t i o n s c a l l , n o t o n l y f o r t e c h n i c a l
e x p e r t i s e and p o l i c y e x p e r i e n c e , b u t a l s o f o r p u b l i c
u n d e r s t a n d i n g , judgment, and consent. As S o c i a l S e c u r i t y
Commissioner A p f e l has r i g h t l y s a i d , t h i s i s s u e cannot be
r e s o l v e d w i t h o u t an "educated c i t i z e n r y , corny as t h a t sounds."
D u r i n g t h e p a s t f i v e y e a r s . P r e s i d e n t C l i n t o n has demonstrated
h i s a b i l i t y t o master complex p o l i c y issues and e x p l a i n them t o
t h e American p e o p l e . He should use h i s p e r s o n a l g i f t s , harnessed
t o t h e powers o f h i s o f f i c e , t o f o s t e r t h e k i n d o f p u b l i c
d i a l o g u e t h a t can h e l p r e f o r m S o c i a l S e c u r i t y i s a g e n u i n e l y
d e m o c r a t i c way. I n so d o i n g , he can h e l p r e s t o r e t h e p u b l i c ' s
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r a o a c i t y o f our t a t t e r e d d e m o c r a t i c i n s t i t u t i o n s t o
^ S S u c ^ p S S S ^ i n e s s f . i r l y and h o n o r a b l y -
TflT'il F ' . H "
�Withdrawal/Redaction Marker
5^
Clinton Library
DOCUMENT NO.
AND TYPE
007. memo
SUBJECT/TITLE
DATE
Bill Galston to the President; RE: 1998 State of the Union (4 pages)
10/23/1997
RESTRICTION
P5
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Clinton Presidential Records
Speechwriting
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Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)|
PI
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b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA]
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b(4) Release would disclose trade secrets or confidential or financial
information 1(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy 1(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the FOIA]
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financial institutions 1(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
National Security Classified Information [(a)(1) of the PRA]
Relating to the appointment to Federal office [(a)(2) of the PRA]
Release would violate a Federal statute 1(a)(3) of the PRA]
Release would disclose trade secrets or confidential commercial or
financial information 1(a)(4) of the PRA]
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WHAT THE SOCIAL SECURITY DEBATE SHOULD BE ABOUT
William A. Galston
Multiple
Challenges
Over t h e p a s t s i x decades, t h e U n i t e d S t a t e s has b u i l t i t s own
d i s t i n c t i v e system o f s o c i a l i n s u r a n c e and p r o t e c t i o n f o r i t s
e l d e r l y c i t i z e n s . As a d i r e c t r e s u l t , t e n s o f m i l l i o n s o f
Americans have enjoyed h e a l t h , s e c u r i t y , and independence. B u t
t o d a y , t h e c o r n e r s t o n e s o f t h i s s y s t e m — S o c i a l S e c u r i t y and
M e d i c a r e — a r e under i n t e n s e f i s c a l , demographic, and ( i n t h e case
of Medicare) t e c h n o l o g i c a l pressure.
M o d e r n i z i n g and s t a b i l i z i n g these programs f o r f u t u r e g e n e r a t i o n s
i s perhaps P r e s i d e n t C l i n t o n ' s g r e a t e s t r e m a i n i n g domestic p o l i c y
c h a l l e n g e . He has t h e o p p o r t u n i t y and ( I b e l i e v e ) t h e
r e s p o n s i b i l i t y t o c a t a l y z e a p u b l i c d i a l o g u e on t h e b e s t ways o f
a t t a i n i n g t h e s e o b j e c t i v e s . That d i a l o g u e c o u l d y i e l d t h e
C l i n t o n a d m i n i s t r a t i o n ' s most s i g n i f i c a n t and e n d u r i n g domestic
l e g a c y . B u t i f i t i s t o succeed, t h e P r e s i d e n t must l e a d i t .
The new S o c i a l S e c u r i t y Commissioner, Ken A p f e l , r e c e n t l y s t a t e d
observed t h a t t h e coming debate over S o c i a l S e c u r i t y " w i l l t e s t
t h i s n a t i o n — t e s t i t s v a l u e s and what we s t a n d f o r . " That i s
c l e a r l y c o r r e c t , and an i m p o r t a n t c o u n t e r w e i g h t t o t h o s e who see
t h i s i s s u e i n narrow f i s c a l o r a c t u a r i a l terms.
But t h i s debate
w i l l a l s o t e s t o u r c a p a c i t y f o r responding t o changing c o n d i t i o n s
by f i n d i n g new ways o f r e a l i z i n g e n d u r i n g v a l u e s . T h i s w i l l , i n
t u r n , c h a l l e n g e everyone t o d i s t i n g u i s h more c l e a r l y between
means and ends, t o c o n s i d e r new ideas on t h e i r m e r i t s i n a s p i r i t
of hope r a t h e r t h a n o f f e a r , t o a v o i d t h e r e f l e x i v e p o l i t i c a l
r h e t o r i c t h a t t u r n s every r e f o r m p r o p o s a l i n t o a p l o t t o " g u t "
the program, "shred" t h e s a f e t y n e t , and "abandon" t h e e l d e r l y .
Enduring Values
At t h e h e a r t o f S o c i a l S e c u r i t y i s a b a s i c s o c i a l compact: As
f e l l o w c i t i z e n s , we a r e connected t o one another i n ways t h a t
t r a n s c e n d i n d i v i d u a l c h o i c e . Our i n d i v i d u a l l i v e s w i l l t a k e v e r y
d i f f e r e n t courses. Nonetheless, i n some r e s p e c t s we agree t o
share a common f a t e .
S o c i a l S e c u r i t y r e s t s on r e c i p r o c i t y - - a balance between
i n d i v i d u a l and s o c i a l r e s p o n s i b i l i t y . A l l i n d i v i d u a l s must seek
g a i n f u l employment and, when w o r k i n g , c o n t r i b u t e t h e i r f a i r share
t o t h e system. I n r e t u r n , s o c i e t y h e l p s every worker a c h i e v e a
decent and secure r e t i r e m e n t , by p r o v i d i n g a reasonable ( n o t
n e c e s s a r i l y o p t i m a l ) r e t u r n on c o n t r i b u t i o n s .
But S o c i a l S e c u r i t y i s i n t e n d e d as a f o u n d a t i o n f o r — n o t t h e
t o t a l i t y o f — r e t i r e m e n t s e c u r i t y . A l l i n d i v i d u a l s a r e expected
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t o t a k e r e s p o n s i b i l i t y f o r b u i l d i n g on t h a t f o u n d a t i o n — b y
s a v i n g , i n v e s t i n g , o r c o n t r i b u t i n g t o a p r i v a t e p e n s i o n p l a n when
available.
Of course, workers ^ t d i f f e r e n t income l e v e l s w i l l be
a b l e t o save p r i v a t e l y t o d i f f e r e n t degrees. S o c i a l S e c u r i t y
n e c e s s a r i l y r e p r e s e n t s a l a r g e r share o f r e t i r e m e n t income f o r
lower-income t h a n f o r higher-income workers--a f a c t t h a t our
s o c i e t y must t a k e i n t o account as we c o n s i d e r how t o honor o u r
c o n t i n u i n g r e s p o n s i b i l i t y t o one a n o t h e r .
Beyond r e c i p r o c i t y . S o c i a l S e c u r i t y r e f l e c t s a balance between
what d i f f e r e n t i a t e s us as i n d i v i d u a l s and what we have i n common
w i t h o u r f e l l o w c i t i z e n s . One c o u l d imagine a r e t i r e m e n t system
i n w h i c h everyone r e c e i v e s t h e same b e n e f i t s , r e g a r d l e s s o f t h e
s i z e o f one's c o n t r i b u t i o n s ; o r a l t e r n a t i v e l y , a system i n w h i c h
benefits are i n s t r i c t proportion t o contributions.
Social
S e c u r i t y i s a t n e i t h e r extreme: wage e a r n e r s who make l a r g e r
c o n t r i b u t i o n s do r e c e i v e l a r g e r b e n e f i t s i n r e t i r e m e n t , b u t most
lower-income e a r n e r s r e c e i v e a h i g h e r r a t e o f r e t u r n on t h e i r
contributions.
That i s , t h e system's b e n e f i t s r e l a t i v e t o
c o n t r i b u t i o n s a r e p r o g r e s s i v e and pay s p e c i a l a t t e n t i o n t o t h e
needs o f lower-income workiers. I n p a r t , t h i s r e f l e c t s t h e f a c t
t h a t we a r e n o t e n t i r e l y s u r e where we w i l l end up i n l i f e ' s
economic l o t t e r y ; we a r e w i l l i n g t o g i v e up some p o r t i o n o f
maximum r e t u r n s t o ensure o u r s e l v e s a g a i n s t t h e p o s s i b i l i t y t h a t
we w i l l r e t i r e on l e s s f a v o r a b l e terms t h a n we now t h i n k most
likely.
S o c i a l S e c u r i t y i s mandatory. T h i s r e f l e c t s o u r shared
u n d e r s t a n d i n g t h a t l e f t t o t h e i r own d e v i c e s , n o t a l l i n d i v i d u a l s
would a d e q u a t e l y p r o v i d e f o r t h e i r r e t i r e m e n t — a n d t h a t i t i s
t h u s a p p r o p r i a t e f o r government t o r e q u i r e a l l o f us t o do so.
The c l a s s i c image i s o f Ulysses lashed t o t h e mast t o p r e v e n t t h e
S i r e n s ' c a l l f r o m d i v e r t i n g him from h i s l o n g t e r m o b j e c t i v e .
(For t h e most p a r t , even t h e most severe c r i t i c s o f t h e c u r r e n t
s t r u c t u r e o f S o c i a l S e c u r i t y acknowledge t h a t i t i s necessary and
p r o p e r f o r t h e government t o r e q u i r e i n d i v i d u a l s t o p r o v i d e f o r
t h e i r retirement.)
S o c i a l S e c u r i t y a l s o r e f l e c t s our shared u n d e r s t a n d i n g t h a t i n a
modern s o c i e t y and economy, p u b l i c programs must p l a y a l e a d i n g
r o l e i n h e l p i n g us honor t h e B i b l i c a l i n j u n c t i o n t o honor o u r
p a r e n t s . N e i t h e r r e t i r e e s n o r t h e i r working-age c h i l d r e n would
w i l l i n g l y r e t u r n t o an e r a when t h e e l d e r l y were d i r e c t l y
dependent on younger f a m i l y members. S o c i a l S e c u r i t y t h u s
represents a combination o f generational interdependence (through
t h e system's c o n t r i b u t o r y p r o v i s i o n s ) and g e n e r a t i o n a l
independence ( f u n d s f l o w d i r e c t l y and r e l i a b l y f r o m t h e
government t o i n d i v i d u a l s r a t h e r t h a n from f a m i l y members a t
their discretion).
F i n a l l y , S o c i a l S e c u r i t y embodies t h e u n d e r s t a n d i n g t h a t
government has a r o l e t o p l a y i n c r e a t i n g and m a i n t a i n i n g a
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framework o f s t a b l e e x p e c t a t i o n s on which i n d i v i d u a l s can r e l y as
t h e y make t h e c h o i c e s t h a t d e f i n e t h e i r l i v e s . The p o i n t i s n o t
to eliminate uncertainty altogether, but t o confine i t w i t h i n
r e a s o n a b l e bounds.
T h i s p r i n c i p l e imposes some c o n s t r a i n t s on programmatic changes
t h a t d i s r u p t stable expectations.
I n d i v i d u a l s s h o u l d n o t be
r e q u i r e d t o make changes t o which t h e y l a c k t h e t i m e and
r e s o u r c e s t o a d j u s t . I t i s not o n l y p r u d e n t , b u t a l s o m o r a l l y
n e c e s s a r y , t o s t r u c t u r e changes t o S o c i a l S e c u r i t y i n a way t h a t
does n o t a f f e c t workers a t o r near r e t i r e m e n t .
Changing Conditions
Key changes s i n c e S o c i a l S e c u r i t y was i n v e n t e d more than s i x
decades ago r e q u i r e us t o r e c o n s i d e r t h e means we use t o promote
a secure and decent r e t i r e m e n t f o r a l l Americans. L e t ' s b e g i n
w i t h demography. Americans a r e l i v i n g much l o n g e r than t h e y d i d
b e f o r e World War Two, and some a n a l y s t s b e l i e v e t h a t o u r
l o n g e v i t y w i l l i n c r e a s e a t an even more r a p i d r a t e i n coming
decades. The a g i n g o f the baby boom g e n e r a t i o n w i l l impose huge
new c o s t s , w h i c h b e g i n t o a c c e l e r a t e a f t e r t h e y e a r 2010 and
w h i c h must be f i n a n c e d by the p a y r o l l t a x e s o f t h e much s m a l l e r
"baby b u s t " g e n e r a t i o n born between 1965 and 1960.
And a system
d e s i g n e d i n an era w i t h low r a t e s o f d i v o r c e and female l a b o r
f o r c e p a r t i c i p a t i o n i s not w e l l s u i t e d t o a new r e l a i t y i n which
these r a t e s a r e f a r h i g h e r .
There have been i m p o r t a n t economic changes as w e l l . The s h i f t
from an i n d u s t r i a l t o a s e r v i c e economy reduces t h e importance o f
a t t r i b u t e s (such as p h y s i c a l s t r e n g t h and endurance) t h a t once
l i m i t e d t h e a b i l i t y o f aging Americans t o remain e f f e c t i v e i n t h e
workforce.
W h i l e p o l i c y m a k e r s i n t h e 1930s c o p i n g w i t h h i g h
unemployment sought ways o f p r o m o t i n g t h e r e t i r e m e n t o f a g i n g
w o r k e r s t o make room f o r younger w o r k e r s , we now f a c e t h e
o p p o s i t e problem: low unemployment, coupled w i t h a w o r k f o r c e
whose s i z e w i l l soon b e g i n t o s h r i n k r e l a t i v e t o t h e number o f
e l d e r l y Americans t o s u p p o r t i f c u r r e n t r e t i r e m e n t p a t t e r n s
continue.
And thanks i n l a r g e p a r t t o S o c i a l S e c u r i t y , t h e
economic c i r c u m s t a n c e s o f o l d e r Americans has improved
d r a m a t i c a l l y , b o t h a b s o l u t e l y and r e l a t i v e t o younger w o r k e r s .
S o c i a l S e c u r i t y i t s e l f i s changing. U n l i k e i n e a r l i e r decades,
t h e system i s now mature, w i t h workers c o n t r i b u t i n g f o r t h e i r
e n t i r e w o r k i n g l i v e s b e f o r e r e c e i v i n g b e n e f i t s . I t i s no longer
p o s s i b l e , as i t once was, f o r a l l workers t o r e c e i v e w i n d f a l l s —
r e t u r n s f a r i n excess o f c o n t r i b u t i o n s . Rates o f r e t u r n a r e
d e c l i n i n g f o r most w o r k e r s , and are t u r n i n g n e g a t i v e f o r some.
The f a i l u r e o f t h e c e l e b r a t e d 1983 Greenspan Commission t o
d e l i v e r on i t s promise o f longterm f i n a n c i a l s t a b i l i z a t i o n has
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c a l l e d a t t e n t i o n t o t h e system's s t r u c t u r a l d e f i c i t , now p l a c e d
a t more t h a n 2 p e r c e n t o f t o t a l p a y r o l l over t h e n e x t 75 y e a r s .
The p o l i c y c o n t e x t i s changing as w e l l . Now, u n l i k e s i x t y o r
even t h i r t y y e a r s ago. S o c i a l S e c u r i t y issues must be addressed
i n tandem w i t h o t h e r l a r g e q u e s t i o n s a f f e c t i n g t h e e l d e r l y . I n
p a r t i c u l a r , t h e f i s c a l c r i s i s o f t h e Medicare system i s more
imminent, and f a r more acute.
I f , as many a n a l y s t s b e l i e v e .
Medicare cannot be s t a b i l i z e d w i t h o u t (among o t h e r changes) a
l a r g e i n f u s i o n o f new p u b l i c r e s o u r c e s , i t would be i r r e s p o n s i b l e
t o commit new t a x d o l l a r s t o S o c i a l S e c u r i t y w i t h o u t c a r e f u l l y
c o n s i d e r i n g t h e programmatic and p o l i t i c a l o p p o r t u n i t y c o s t s .
F i n a l l y , p u b l i c o p i n i o n i s s h i f t i n g . By t h i s I do n o t mean t h e
much-debated l o s s o f c o n f i d e n c e i n S o c i a l S e c u r i t y , b u t r a t h e r :
an i n c r e a s e d u n d e r s t a n d i n g ( f u e l e d by t h e surge i n t h e s t o c k
m a r k e t ) o f t h e l o n g t e r m d i s p a r i t y between r e t u r n on e q u i t i e s as
opposed t o bonds; t h e r e a d i e r a v a i l a b i l i t y o f t i m e l y i n v e s t m e n t
i n f o r m a t i o n and e f f e c t i v e choices t o i n d i v i d u a l s , n o t j u s t l a r g e
i n s t i t u t i o n s ; and changing a t t i t u d e s ( e s p e c i a l l y among younger
workers) toward s e l f - r e l i a n c e , the appropriate r o l e f o r
i n d i v i d u a l c h o i c e , and a c c e p t a b l e l e v e l s o f r i s k i n r e t i r e m e n t
programs.
Conclusion
W i t h i n t h i s c o n t e x t o f changed c o n d i t i o n s and e n d u r i n g v a l u e s ,
t h e r e i s room f o r s i g n i f i c a n t debate about t h e s t e p s we s h o u l d
t a k e t o b o t h modernize and s t a b i l i z e S o c i a l S e c u r i t y . Should we
phase i n a s i g n i f i c a n t i n c r e a s e i n t h e r e t i r e m e n t age, o v e r and
above t h e i n c r e a s e s contemplated i n c u r r e n t law? Should we
r e v e r s e l o n g s t a n d i n g i n c e n t i v e s f o r e a r l y r e t i r e m e n t , w h i c h have
reduced by more t h a n t w o - t h i r d s l a b o r f o r c e p a r t i c i p a t i o n r a t e s
by men o l d e r t h a n 65 over t h e past h a l f - c e n t u r y ?
Should we make
t h e system f a i r e r f o r women who work o u t s i d e t h e home and f o r
younger f a m i l i e s w i t h dependent c h i l d r e n ? Should we i n c r e a s e t h e
r o l e f o r i n d i v i d u a l management o f r e t i r e m e n t s t r a t e g i e s ? Should
we i n v e s t new p u b l i c resources i n S o c i a l S e c u r i t y , o r r a t h e r
f o c u s on s t r u c t u r a l adjustments o f b e n e f i t s ?
These and many o t h e r q u e s t i o n s c a l l , n o t o n l y f o r t e c h n i c a l
e x p e r t i s e and p o l i c y e x p e r i e n c e , b u t a l s o f o r p u b l i c
u n d e r s t a n d i n g , judgment, and consent. As S o c i a l S e c u r i t y
Connnissioner A p f e l has r i g h t l y s a i d , t h i s i s s u e cannot be
r e s o l v e d w i t h o u t an "educated c i t i z e n r y , corny as t h a t sounds."
D u r i n g t h e p a s t f i v e years. P r e s i d e n t C l i n t o n has demonstrated
h i s a b i l i t y t o master complex p o l i c y i s s u e s and e x p l a i n them t o
t h e American p e o p l e . He should use h i s p e r s o n a l g i f t s , harnessed
t o t h e powers o f h i s o f f i c e , t o f o s t e r t h e k i n d o f p u b l i c
d i a l o g u e t h a t can h e l p r e f o r m S o c i a l S e c u r i t y i s a g e n u i n e l y
d e m o c r a t i c way. I n so d o i n g , he can h e l p r e s t o r e t h e p u b l i c ' s
�'
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t r u s t i n the c a p a c i t y of our t a t t e r e d democratic i n s t i t u t i o n s
conduct the people's business f a i r l y and honorably.
to
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m
U.S. Department of Transportation FAX
FROM:
Office of the Assistant Secretary for Transportation Policy
Fax (2Q|)366-7127
|
Assistant Secretary (VACANT)
202 366-4544
y__ Acting Assistant Secretary John N. Lieber 366-4450
Deputy Assistant Secretary Joseph F. Canny 366-4540
Special Assistant Janet A. Friedl
366-4544
TO:
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PAGES:
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(Including cover sheet)
MESSAGE:
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�NOV.26.1997
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THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
November 26,1997
TO:
Gene Sperling
Assistant to the President for Economic Policy
FROM:
Rodney E. Slater
RE:
Proposal for State of the Union Address
The White House has asked agencies to propose initiatives for possible inclusion in the
President's 1998 State of the Union Address. We strongly mgethat mention be made of the sixyear, $175 billion-plus surface transportation reauthorizationom that the Congress is expected to
pass next year, and of the Administration's goals for it.
Background
Next to defense and entitlements, transportation infrastructure is the largest area of Federal
spending. The previous transportation reauthorization bill, the IntermodaJ Surface
Transportation Efficiency Act of 1991 ("ISTEA"), was widely popular ~ both with proponents of
infrastructure investment and with environmentalists, urban interests and safety groups. Making
good on President's 1992 campaign promise to "Rebuild America," the Administration has since
worked with Congress to increase highway and transit spending, while aggressively
implementing the environmental programs and other progressive features of ISTEA.
In March 1997, President Clinton and Vice President Gore announced the Administration's
reauthorization proposal - the so-called National Economic Crossroads Transportation
Efficiency Act or "NEXTEA." NEXTEA called for continuing to grow investment in
infrastructure while also redoubling efforts to leverage Federal transportation programs to
advance other Administration priorities -- the environment and safety agendas, moving welfare
recipients to jobs, and protecting gains for equality achieved through minority and womenowned business programs.
The bill developed by House and Senate committees during the 1997 session largely reflected
Administration priorities set out in NEXTEA - a dramatic departurefrompast treatment of
Executive Branch transportation authorization proposals. However, disputes over funding and
non-transportation issues intervened, and Congress put offfinalaction until 1998, instead
enacting a temporary extension to the existing program.
�N0V.26.199r • 7:11PM
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Rationale for Including Surface Transportation Legislation
A variety of factors militate for including the Administration's surface transportation agenda in
the State of the Union speech.
o
Connection to Administration priorities. Infrastructure investment has been a major
contributor to improvements in productivity and to our overall economic growth, and
NEXTEA will support over a million jobs over the next six years. Fuithennore, ISTEA
reauthorization is an issue of the highest concern to organized labor, environmentalists,
governors, mayors and other local officials, as well as supporters of the Administration's
race initiative and welfare to work efforts. There is concern about potential efforts to roll
back relevant elements of the House and Senate bills. The Administration needs to signal
- to Congress and involved groups -- its willingness tofightfor a bill that reflects these
priorities, and does more than just fund increases in highway construction.
o
High likelihood ofsuccess. Transportation reauthorization is widely viewed as one of the
few "must pass" items on the legislative calendar for 1998. As indicated above, the
Administration has already exercised effective leadership. The President should be
positioned to share credit at the time of ultimate enactment.
o
Opportunity to showcase bi-partisanship. Transportation funding has strong bipartisan
support in Congress, and any expression of the Administration's commitment to see
through reauthorization legislation will be welcomed.
o
Budget significance. The size of the transportation program ~ $175 billion or more over
six years - makes it one of, if not the largest domestic initiative on the horizon for 1998.
o
Universal interest. Transportation touches the lives of everyday Americans, every day.
And, as a recent article in Slate highlighted, several 1997 significant election races (e.g.,
the New Jersey and Virginia governorships) hinged in large part on transportation issues.
o
Keep building record of accomplishment. With the recent Amtrak legislation and labor
settlement, die Administration has set a tone of active and successful engagement in
transportation issues. It is important that this carry forward into 1998, when Congress
will be talcing up a huge range of matters that, along with ISTEA reauthorization, will
shape the transportation system for the 21st Century. These include funding for airports,
reorganization of air traffic control, and ocean shipping,
Conclusion
The Administration has already had tremendous success in shaping the transportation
reauthorization bill. Mentioning this effort will protectgresidential priorities and assure that the
President receives due credit for this huge domestic initiative. My office stands ready to assist
the White House in any way that is helpful. If youreguire further information, please contact
John N. Lieber, Acting Assistant Secretary for Transportation Policy, at (202) 366-4450.
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DEPARTMENT OF HEALTH & HUMAN SERVICES
Melissa T. Skolfield
Assistant Secretary for Public Affairs
Phone: (202) 690-7850
Fax: (202) 690-5673
1 \la
To:
Fax :
4^6 • 6 7 0 ^
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Date:
Phone:
Total number of pages sent:
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Comments:
200 Independence Avenue. S.W.. Bldg. HHH, Room 647-D. Washington, D.C. 20201
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N V I s 1997
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MEMORANDUM FOR THE PRESIDENT AND THE FIRST LADY
On the morning of the first-ever White House Conference on Child
Care, you reminded the Nation that no parent should ever have to
choose between work and family or between earning a decent wage
and caring for a c h i l d . The growing number of women with
children i n the labor force i s one of the biggest s o c i a l changes
of the 20th century; coming to terms with that change i s one of
our biggest challenges of the 21st century. As Secretary Rubin
pointed out a t the Child Care Conference, our new economy cannot
continue into the 21st century unless we as a Nation can ensure
safe and affordable c h i l d care. As we know from both the common
sense experience of parents and a range of emerging research, our
children cannot grow and thrive unless those c h i l d care settings
protect t h e i r health and safety and provide an environment i n
which they can learn.
Together, you have lead an extraordinary national dialogue on
c h i l d care. Over the past five years your Administration has
taken important steps to increase funding for child care,
p a r t i c u l a r l y for families transitioning from welfare to work.
Yet, as your White House Conference demonstrated, we s t i l l have a
long way to go.
We need a bold new 21st Century Child Care I n i t i a t i v e to draw on
the energy the Child Care Conference unleashed from a l l
Americans — federal, state and local leaders; employers; the
f a i t h community; c h i l d care providers; and families themselves,
both r i c h and poor. This i n i t i a t i v e must build on what we know
about what children need to be safe and healthy, about what works
in communities, and about what parents and employers need to
assure a strong and effective labor force.
We cannot s e t t l e f o r addressing j u s t one of these needs or j u s t
one p a r t o f the problem, because the stakes are too high f o r us
as a Nation. We cannot meet the 21st century challenge of a
t h r i v i n g economy and growing children i f we s e t t l e only f o r
making c h i l d care more affordable f o r s t r u g g l i n g f a m i l i e s while
l e a v i n g c h i l d r e n ' s safety at r i s k — or i f we s e t t l e only f o r
improving some c h i l d r e n ' s care while leaving the cost of c h i l d
care out o f range f o r f a r too many working f a m i l i e s . A piecemeal
approach w i l l undercut both our short-run and long-run success by
f a i l i n g t o respond t o the deeply f e l t needs of parents; by
p l a y i n g d i f f e r e n t f a m i l i e s o f f against each other, r a t h e r than
�Page 2
b u i l d i n g a shared conunitment t o America's f u t u r e ; and by
t o p r o v i d e t h e r e a l l e a d e r s h i p t h a t communities, s t a t e s ,
employers, and f a m i l i e s need t o move f o r w a r d .
failing
L e t me say more about what we know now about each o f t h e s e needs:
Across the country we hear from working f a m i l i e s t h a t they are
s t r u g g l i n g t o a f f o r d s a f e care for t h e i r c h i l d r e n . Low-income
working f a m i l i e s are spending on average a quarter of t h e i r
income on c h i l d c a r e . Although some 10 m i l l i o n c h i l d r e n from
working f a m i l i e s are e l i g i b l e for d i r e c t c h i l d c a r e a s s i s t a n c e ,
f e d e r a l s u b s i d i e s serve a l i t t l e more than one m i l l i o n c h i l d r e n .
The Dependent Care Tax C r e d i t reaches only a f r a c t i o n of these
f a m i l i e s s i n c e i t i s not refundable and provides only minimal
support.
Your new plan must address these hardworking, lowincome f a m i l i e s . They get up each day, work hard and play by the
r u l e s and y e t s t i l l cannot afford q u a l i t y h e a l t h c a r e or c h i l d
care.
The c h i l d r e n of these working parents too often spend t h e i r days
i n s e t t i n g s t h a t do not promote healthy c h i l d development and may
even compromise t h e i r s a f e t y . With m i l l i o n s of i n f a n t s and
t o d d l e r s now i n care, c h i l d r e n can spend years i n poor care
before they e n t e r school, d i r e c t l y a f f e c t i n g school r e a d i n e s s .
The r e c e n t N a t i o n a l I n s t i t u t e of Child Health and Human
Development study c l e a r l y demonstrated that high q u a l i t y care for
very young c h i l d r e n i s c o n s i s t e n t l y r e l a t e d to high l e v e l s of
c o g n i t i v e and language development.
Once c h i l d r e n enter school, we do not take advantage of the
v a l u a b l e l e a r n i n g time a f t e r school and throughout the summer
months. L e a r n i n g does not stop at 3:00 p.m., and i t i s c e r t a i n l y
not s e a s o n a l . We no longer need our c h i l d r e n to tend our f i e l d s
during the summer. Furthermore, numerous s t u d i e s now i n d i c a t e
t h a t the l a c k of care and attention put our youth a t r i s k f o r
g r e a t e r a l c o h o l , tobacco, drug use, teen pregnancy, and
involvement i n crime.
D e s p i t e t h e s e needs, v e r y few communities have r e s o u r c e s t o
c r e a t e s o l u t i o n s t o t h e q u a l i t y , a f f o r d a b i l i t y , and a v a i l a b i l i t y
i s s u e s t h a t you o u t l i n e d a t t h e White House Conference. The v a s t
m a j o r i t y o f a s s i s t a n c e goes d i r e c t l y t o p a r e n t s t o pay f o r c a r e .
A v e r y s m a l l amount, about f o u r percent of d i r e c t s u b s i d y , goes
t o q u a l i t y a c t i v i t i e s , which are u s u a l l y planned a t t h e s t a t e
level.
Some communities, l i k e those t h a t Governor Hunt d e s c r i b e d
i n N o r t h C a r o l i n a , are combining a v a r i e t y of r e s o u r c e s t o
s t i m u l a t e i n n o v a t i o n and c a p i t a l i z e on the commitment of t h e i r
n e i g h b o r h o o d s c h o o l s , employers, and parents. As you p o i n t e d out
a t t h e Conference, we need t o take the models t h a t a r e w o r k i n g i n
one community and g i v e o t h e r communities an o p p o r t u n i t y t o adapt
them t o meet t h e i r s p e c i f i c needs.
�Page 3
Given what we know about c h i l d care both from emerging r e s e a r c h
and f r o m what p a r e n t s have t o l d us, I have recommended t o OMB and
White House S t a f f a s e r i e s of investments t o s e r i o u s l y address
t h e h e a l t h , s a f e t y , and developmental needs of our youngest
c h i l d r e n and our school-age c h i l d r e n , f o r whom care i s most o f t e n
of poor q u a l i t y and i n s h o r t supply.
I n y o u r S t a t e o f t h e Union address and f i s c a l year 1999 budget
s u b m i s s i o n , I s t r o n g l y urge you t o p u t f o r w a r d a comprehensive
p l a n t h a t would i n c l u d e s i x c r i t i c a l c h i l d care investment
s t r a t e g i e s t o h e l p f a m i l i e s and communities.
For f a m i l i e s :
o I n c r e a s e t h e number o f c h i l d r e n from low-income w o r k i n g
f a m i l i e s t h a t r e c e i v e c h i l d care a s s i s t a n c e by 250,000 i n
1999 by expanding d i r e c t a s s i s t a n c e by 700 m i l l i o n d o l l a r s .
T h i s w o u l d be an i m p o r t a n t f i r s t s t e p toward t h e g o a l o f
d o u b l i n g t h e number o f c h i l d r e n now r e c e i v i n g d i r e c t c h i l d
care assistance.
o
For
Reach m i l l i o n s o f working f a m i l i e s by m o d i f y i n g t h e
Dependent Care Tax C r e d i t (DCTC) i n two ways, making i t
r e f u n d a b l e and expanding t h e c r e d i t t o p r o v i d e g r e a t e r
a s s i s t a n c e t o low-income working f a m i l i e s . At a minimum we
s h o u l d update t h e DCTC; i t has n o t been indexed f o r
i n f l a t i o n s i n c e 1982.
The t i m e f o r change i n t h i s c r i t i c a l
f a m i l y s u p p o r t i s long overdue.
communities:
o
Enable up t o 1,000 communities t o c r a f t i n n o v a t i v e s o l u t i o n s
t o p r o t e c t t h e h e a l t h and s a f e t y o f i n f a n t s and t o d d l e r s i n
c a r e . T h i s w i l l demonstrate your commitment t o s c h o o l
r e a d i n e s s i n 1999, t h e t e n t h a n n i v e r s a r y of t h e e d u c a t i o n
g o a l s . I n v e s t m e n t : 800 m i l l i o n d o l l a r s .
o
Enable up t o 500 communities t o f i n d l o c a l s o l u t i o n s t o
school-age c h i l d care needs. L i n k such an e f f o r t w i t h an
expansion o f your Schools of t h e 21st Century program t o
ensure t h a t we maximize t h e use of schools as p a r t of t h i s
o v e r a l l community m o b i l i z a t i o n e f f o r t . A p a r t i c u l a r
emphasis needs t o be p u t on a f t e r school a l t e r n a t i v e s f o r
a d o l e s c e n t s . Investment: 300 m i l l i o n d o l l a r s .
o
P r o v i d e t r a i n i n g and education t o a t l e a s t 150,000
p r o v i d e r s , a f f e c t i n g t h e care of about 1.5 m i l l i o n c h i l d r e n .
T h i s would b u i l d on t h e N a t i o n a l C h i l d Care P r o v i d e r
S c h o l a r s h i p Fund t h a t you announced a t the White House
Conference.
Investment: 150 m i l l i o n d o l l a r s .
�Page 4
o
Put i n p l a c e a system of consumer education and supports f o r
r e s e a r c h and data c o l l e c t i o n as w e l l as the use of
technology f o r t r a i n i n g providers. This e f f o r t would
i n c l u d e a n a t i o n a l consumer education campaign, a t r a i n i n g
s t r a t e g y t o reach home providers and c a r e g i v e r s i n r u r a l
communities and a National Center on C h i l d Care S t a t i s t i c s
t h a t w i l l f i n a l l y give us the c r i t i c a l information we need
t o p l a n f u t u r e p o l i c y d i r e c t i o n i n t h i s area. Investment: 50
million dollars.
T o g e t h e r , y o u have s e t t h e stage f o r an unprecedented n a t i o n a l
d i s c u s s i o n and investment i n c h i l d care and a f t e r s c h o o l
programs. The American people know we have a c h i l d care system
t h a t does n o t work e f f e c t i v e l y f o r f a m i l i e s o r f o r c h i l d r e n .
B u i l d i n g on t h e momentum that you began with the White House
Conferences, your FY 1999 budget and the State of the Union
should p r e s e n t a concrete and powerful strategy t o b u i l d a
21st century c h i l d care system.
I b e l i e v e t h a t with your i n s p i r i n g leadership, we can add another
b u i l d i n g block t o your e f f o r t to redefine the f u t u r e of working
f a m i l i e s i n America. This w i l l be another h i s t o r i c legacy of
your P r e s i d e n c y .
Donna E. Shalala
�sons
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T H t v S E C R E T A R Y OF H E A L T H A N D H U M A N SERVICES
W A S H I N G T O N . D C.
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97
MEMORANDUM FOR THE PRESIDENT
Now is the time for our Nation to increase substantially its investment in research that will
combat disease and enhance health. As we look toward the final years of the Clinton-Gore
Administration, I urge you to set in motion what could prove to be one of your most enduring
and significant legacies — a plan to significantly improve the Nation's health by doubling the
research budgets of our major scientific research agencies, the National Institutes of Health
(NIH), the Centers for Disease Control and Prevention (CDC), and the Agency for Health Care
Policy and Research (AHCPR).
Today, because of your leadership, our Nation is at peace and on firm economic ground. Many
of our citizens are once again living the American dream. They have good jobs. They have the
income to buy a home, raise a family, and educate their children. Inflation rates are low. The
budget is virtually balanced. High among the remaining concerns of our citizens are disease,
disability, and untimely death. Only health research can overcome these scourges and promise
longer, healthier lives for ourselves, our children, and our children's children.
At the dedication of the NIH campus in 1940, Franklin Delano Roosevelt said, "We cannot be a
strong Nation unless we are a healthy Nation." In recognition of that principle, the Federal
Government decided more than half a century ago to invest systematically in health research.
This research has led to important innovations in high quality services.
Today, the U.S. has an unrivaled record of achievements inspired by the challenges of human
illness. Many of the diseases and disabilities that our parents and grandparents faced a
generation ago can now be prevented or treated:
•
Age-adjusted mortality from coronary artery disease and stroke has been halved.
•
Cancer death rates have begun to fall for the first time in history, and certain formerly
lethal cancers like childhood leukemia and testicular cancer are now rarely fatal.
•
Smallpox has been eradicated from the entire world, and polio has recently been
eliminated from the Western Hemisphere.
•
Surgical interventions, such as organ transplantation or cardiac pacemakers, can restore
virtually normal life to many who are gravely ill.
�Page 2 - The President
•
An entire generation of those sufferingfromsevere depression or schizophrenia is able to
lead productive lives because of modem drugs.
•
The incidence of childhood diseases preventable with vaccines is at its lowest level ever.
•
AIDS patients can plan for a future they would have otherwise been denied just a few
years ago, because of new combination therapies.
•
Because of new clot-dissolving drugs, many stroke patients no longer live with severe
disability.
The ability of patients and clinicians to make informed treatment choices has been greatly
expanded as a result of outcomes and effectiveness research. These achievements, and many
others, would not have occurred without our Nation's strong and sustained support of research.
While such public health accomplishments are unprecedented in human history, they pale in
comparison to what is yet to come. We have entered the "golden age" of biomedical, prevention,
and health services research. Today's researchers are unveiling the fundamental properties of
cells and genes, the structure of proteins, and the circuitry of the world's most awesome
computer, the human brain. Science is yielding stunning new insights into the mechanisms of
disease and envisioning the means to treat devastating illnesses and disabilities. It promises a
future in which the fear of cancer, heart disease, AIDS, mental illness, birth defects, or diabetes,
among others, is enormously reduced.
To deliver on this promise, a bold new investment in health research is needed. To ensure that
we all reap the full rewards of this wealth of innovation, our health research agenda must include
a substantial investment in health services and prevention research. Health services research can
correct the underuse of effective interventions and continued reliance upon outmoded approaches
to patient care that contribute to the cost of care and the loss of life. Prevention research can help
us to reduce dramatically the incidence of birth defects, injuries, certain cancers, and
cardiovascular and sexually transmitted diseases.
This type of research has led to remarkable reductions in vaccine-preventable diseases and
childhood lead poisoning. Additional investments in research, conducted in partnership with
communities throughout the Nation, could lead to further dramatic reductions in illnesses,
injuries and deaths. For example, we know that at least 50 percent of spina bifida and
anencephaly could be prevented if all women capable of becoming pregnant took 400 micrograms of folic acid daily. At present only 25 percent of such women take this amount each day;
research is needed to leam how to increase this proportion to virtually 100 percent. Or if all
bicyclists could be convinced to wear safety helmets, we would reduce the risk of brain injury
among bicyclists by 88 percent. Diabetes is another major area for potential prevention research
intervention. This research could reduce significantly the development of adult-onset diabetes,
as well reduce the complications of diabetes by about half.
�Page 3 - The President
Several converging trends argue strongly that the time for investing boldly is now. The aging-of
the baby-boom generation will increase the prevalence of chronic diseases, such as osteoporosis,
Parkinson's and Alzheimer's diseases; preventing or delaying the onset of such diseases will
deliver enormous social and economic benefits. The growing health needs of minority and
socioeconomically disadvantaged populations demand specific attention to guarantee that all
Americans reap the benefits of new health knowledge. Changes in our health care system are
challenging traditional means of delivering care and conducting research. Government, industry,
academia, and health care providers will need to develop new ways to assess the health of the
public, to provide the highest quality care, to measure health outcomes, and to ensure that the
most effective interventions - old and new - are being used in everyday practice. In addition,
much of our Nation's research infrastructure is obsolete. Investment in new buildings,
refurbished facilities, innovative instrumentation, information technology systems, and, most
critically, training of scientists, are all vital to preserving our world leadership in health research.
Most importantly, our scientists are poised to change the practice of medicine in the most
fundamental ways, in part because of extraordinary new research methods. Important strides in
imaging technologies make it possible to visualize living cells and whole organs, as well as the
architecture of individual molecules. The Human Genome Project is speeding the discovery of
disease genes as it lays open the blueprint of human beings. Computer-based information
systems are enabling scientists to analyze rapidly the vast amounts of data being collected with
these new methods.
With these and other tools in hand, we can realistically anticipate sweeping changes in our
approaches to curing disease and protecting the public health. For example, physicians will be
able to select accurately the best course of treatment for cancers of the prostate, breast, ovary
and other tissues because of new knowledge about genes and the molecularfingerprintof
individual tumors. Laboratory and clinical research will change the management of diabetes;
with improved methods for accurate blood glucose measurement and new methods of metabolic
control, the debilitating nerve, eye, and kidney complications of this disease will be prevented.
One day, because of genetic research, we will be able to identify individuals at increased risk for
diseases like hypertension and stroke, glaucoma, osteoporosis, Alzheimer's disease, or severe
depression, and design appropriate interventions. We will have effective vaccines for pandemic
diseases such as AIDS, tuberculosis, and malaria. The discovery of the obesity gene and its
hormone product, leptin, will be parlayed into novel and safe strategies for appetite and weight
control. We will be able to rejuvenate the failing heart by grafting healthy muscle cells to
cardiac tissue damaged by a heart attack. New knowledge about the biological basis of craving
and addiction will result in medications targeted specifically to receptors in the brain which play
a role in substance abuse.
Finally, research to move discoveries into the clinic, to determine what works best in daily
practice, and to improve the quality of patient care will lead to direct and immediate public
benefits, as well as contribute to the solvency of the Medicare program. Health services research
�Page 4 - The President
has shown that 30 percent of patients receive medical procedures that are not appropriate when
measured againstrigorousclinical standards. By combining research on what works best in daily
practice and effectively transferring that knowledge to practitioners with effective strategies for
measuring and improving quality, we can reduce inappropriate variation, accelerate the pace at
which the benefits of science improve clinical care, and identify clinical treatments which can
reduce costs and improve quality.
To achieve these exciting goals, I strongly urge you in your State of the Union address and fiscal
year 1999 budget submission to propose these health research investments:
•
Double NIH funding in 10 years, with a 50 percent increase infiveyears. We heed a
1999 increase that is significantly larger than the 7.1 percent increase appropriated by the
Congress for 1998; I have proposed a 10 percent increase in 1999.
•
Address most of the great research university and academic medical center laboratory
construction needs in a boldfive-yearprogram which combines matching grants and loan
guarantees. This would be funded within the NIH total.
•
Create a bold new CDC prevention research program to ensure the maximum public
benefitfromthefindingsof health research, phasing up to $1 billion in 2008.
•
Reinvent the Agency for Health Care Policy and Research to dramatically commit to the
new health services research we need to vigorously exploit new scientific knowledge to
improve the quality of health care plans while restraining health care costs, phasing up to
$0.8 billion in 2008.
•
The best way to accomplish this dramatic increase in health research, without
endangering other priorities, is a dedicated funding source such as an assessment on
insurance premiums, or another suitable revenue source such as new tobacco legislation.
Mr. President, you lead the country at an auspicious moment in our history - a moment when
scientific opportunity is matched by economic and political feasibility. There is already broad
bipartisan support for a doubling of our Nation's investment in health research in response
to the extraordinary scientific promises I have outlined. You must seize this moment. By doing
so, you, like President Roosevelt a half century ago, will establish a lasting legacy of health for
future generations at home and abroad.
Donna E. Shalala
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DOCUMENT NO.
AND TYPE
008b. memo
SL BJ ECT/TITLE
DATE
Henry Cisneros to President Clinton; RE: Ideas for the President's
State of the Union Address (2 pages)
12/19/1997
RESTRICTION
P5
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Clinton Presidential Records
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Michael Waldman
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�i £. i- • o i u
Clinton Makes Overture To Cuba. Ne^soaperi
000
o ;
orientation, 940 on ethnic background and six for multiple
reasons."
Morning Television. ABC (1/9) reported: 'The
nation across the country enjoying a steep drop in violent
crime. Even so the FBI reports that hate crimes are up all
over the country There were nearly 9,000 hate crimes in
1996. 650 off them were race-motivated. Blacks were
victims of those 42% of the time. The statistics reveai
more than 5,000 hate crimes based on race. More than
i,400 based on religion. And more than 1,00G oased cn
sexual orientation. ,., Attorney general Janet Reno is
asking all 93 US Aitorneys to appoint hate crime
coordinators to meet in Washington next month to map
out strategies to fight hale crimes."
and Wires.""Hauler (1/8) reported President Clinton
yesterday "said he would be wiiilrq lo open up lo Cuba if
Havana showed signs of respecting human rights and
demQcracy and said he wished the Pope well on his
upcoming v/isit. Clinton acknowledged thai Havana's
downing of two civilian US aircraft almost Iwo years ago
'put a deep chill on our relations But he added: "I think
there ought lo be a reciprocal relationship...where. _as
Cuba shows more support for democracy and human
j i g Ills, we shouid open up, we should try some reciprocal
effort, but It has to be reciprocal." Clinton also told guests
at a political fundraiser in New York City, "It will be
interesting to see how the Pope's visit goes. I'm very
encouraged that he's going."
1
Clinton's Personnel Woes Creating Disorder.
White House Defends Policy On Iraq.
Magazines. The Economist (1/10) reported although
many of President Clinton's "first-term officials did indeed
stay on, giving him a Cabinet that has more combined
experience than almost any other since the Second Worio
War," lower on the "ladder, however, things have been
chaotic. For much of 1997, more than one in four
positions for presidential nominees in the executive
branch stood empty." The Economist noies that "when
financial crisis hit South Korea ana threatened to engulf
Japan, It turned out that Mr. Clinton had failed to Install an
ambassador in either country." Still, Clinton's personnel
woes are "not all his fault," because the Senate nas
"grown increasingly stroppy. Now a nominee's views, and
the minute details of his life, can turn the Senate against
him." A Twentieth Century Fund study found that "at the
end of last year, the Senate nad confirmed only 361 of the
500 clv/lllan nominees sent by the President for
confirmation,"
Newspapers and Wires. The W Times (1/9, Al, Gertz,
Marshal!) reportec in its lead story, "Clinton Administration
spokgsmen yesterday defended Washington's handling of
the latest crisis m Iraq and challenged a new JS
Intelligence finding that Saddam Hussein came out ahead
in the standoff over weapons mspoctions," The WT
quoted While House Press Secretary Mike McCurry
saying, "Saddam Hussein remains in a very tight bo* of
economic sanctions and other restrictions, unanimously
supported by iha Security Council"
Morning Television. Meanwhile, ABC (1/9)
reported that "there are no plans to reduce the size of the
US Military force in the Persian Gulf region. The
Pentagon says the aircraft carrier George Washington,
along with the Nimitz and more than 250 aircraft, will stay
until Irao compiles with United Nations arms inspections."
Reno Backs Expanded Definition For Hate
Holder Said To Be Exerting Influence.
Crimes. Newspapers and Wires. The AP (1/9)
reported Atlornay Genera! Janet Reno "urged Congress to
pass legislation expanding the scope of hales crimes, as
the FBI reported 8,759 such Incidents In 1996." Reno
said that "she had joined President Cimton m pushing for
legislation before Congress that would expand the
definition of federal hate crimes !o include those based
on disabilities, gender and-sexual orientation. Federal
hate crimes now include only incidents based on race,
coior, religion and national origin." According to the FBI
report on 1996 statistics, "low enforcement agencies
across the country reported 5,396 hate crimes based on
race, MO based on religion, 1,016 based on sexual
Magazines. Insight (1/2S, Dettmer) reported sources said
Deputy Attorney General Eric Holder is "beginning to
make his presence felt" at the Department of justice,
"including an attempt tc shift section chiefs and otner
oigwigs around."
Haider is "facing considerable
resistance, apparently," but he has "one major success
already Deputy Assistant Attorney General Mark Richard
is to retire later this month -- a move forced on him by
Holder, sources soy." It Is not "dear whether Richard's
role m the department's ongoing probe into Democratic
fundraising practices Influenced Holder's eagerness to get
nd of him." Richard, with Public Integrity Section heaa
uee Radek, had been "overseeing me probe, out both
1
12
�T H E
W H I T E
H O U S E
�01/33/98
15:39 FAX 202 690 2119
USDA OSEC
121002
Friday, January 23, 1998
USDA
GREG FRAZIER
Chief of Staff
To Kris Balderston The 6 pages of background that follow include the news release we issued today about the
implementation of HACCP Monday.
This month is also the five year anniversary of the Jack-in-the-Box episode, the incident that
spurred the Administration to propose and adopt HACCP.
While I do not know the themes of the speech, 1 suggest that mention of this fits with a
discussion of any number of themes strengthening families - the new food safety system will strengthen the confidence
our families have in the safety and wholesomeness of our food supply;
investing in health - this new system will enable us to stem the outbreak of food borne
diseases, which affect thousands and cost millions and millions each year;
st
moving to the 21 century - it replaces a century-old inspection system based on
seeing, touching, and smelling with one based on scientific testing and validation;
reinvention of government - the new system replaces the old command and control
system with one in which government and the private sector work together to adapt
tailored solutions to individual plants and problems; and
•
appropriate role of government - while we move to a smaller, leaner government, we
must maintain those functions of government that individuals cannot do for themselves
such as inspecting their food.
Nonetheless, more needs doing, which is why the President's budget includes a significant
investment in food safety - which has already been made public.
We also strongly believe that we need additional enforcement tools - the legislation we
announced last summer in the wake of the Hudson Foods episode and which is discussed in the
attached release and talking points. Thus, in addition to mentioning the implementation of
HACCP, I recommend an expression of support for the legislation "Starting this new system is a remarkable achievement, but we need to do
more. We need to make sure USDA has the tools i t needs to enforce the new
inspection system, which is why I call on Congress to act on the food
safety enforcement legislation we sent to it last fall^
�01/23/98
15:39 FAX 202 690 2119
USDA OSEC
lg]003
Secretary of Agriculture Dan Glickman today hailed the implementation of the Clinton
Administration's new meat and poultry inspection system, called Hazard Analysis and Critical
Control Points (HACCP). Effective January 26, 1997, the 312 largest meat and poultry plants
will operate under this new system, which will improve food safety and better protect American
consumers from foodborne illness. These plants account for approximately 75 percent of the live
meat and poultry slaughtered in the United States.
"This new system is a revolutionary improvement over the old approach", Glickman said,
who noted that the meat and poultry inspection system had not been fundamentally changed for
over 90 years. "Rather than catching problems after they occur, we will now focus on preventing
problems in the first place. Instead of relying only on the sight, touch, and smell of our
inspectors, we will use science-based controls and microbiological testing directly targeted at
reducing harmful bacteria like E. coli Ol57:H7 and salmonella."
Under the new system, each plant will operate under a HACCP (pronounced hassip) plan
designed to prevent contamination of meat or poultry. In addition, plants will test for generic E.
Coli and use the test results to monitor the effectiveness of their HACCP plan. Food Safety and
Inspection Service (FSIS) inspectors will conduct tests to ensure that plants are reducing the
amount of meat or poultry that is contaminated with salmonella.
"This is a truly historic and fundamental change in our approach to food safety",
Glickman said, noting that this is the first time the Department of Agriculture (USDA) will
require plants to reduce bacterial contamination of meat or poultry. "We are committed to
making this new system work as effectively as possible for American consumers."
Rather than a one-size-fits all approach, each plant has designed its own plan to meet
USDA food safety standards. With this new flexibility, plants are also assigned greater
responsibility for producing safe food. USDA inspectors, however, will continue to play an
essential role in ensuring food safety.
Glickman said, "Our inspectors have a fundamental role ensuring food safety for
consumers under this new system." Inspectors will continue to visually inspect carcasses,
document food safety violations, verify a plant's compliance with its HACCP plant, and to take
direct action when necessary to prevent contaminated product from reaching consumers.
"This new system will be effective if we stick to this fundamental philosophy—industry is
responsible for producing safe food, and USDA's job is to hold industry accountable when they
do not," Glickman said. "I've met with a number industry leaders, and I'm confident that they
are fully prepared to implement this new system. But I also made it very clear to them that
USDA will not hesitate to shut down plants that do not take their food safety responsibilities
seriously and repeatedly fail to meet food safety standards."
The first phase of the new system went into effect in January of 1997. Since that time,
FSIS has temporarily shut down operations in 20 plants for failing to meet these new standards,
an increase of over 200 percent from the 6 plants that FSIS shut down in 1996.
�01/23/98
15:40 FAX 202 690 2119
USDA OSEC
0
04
Glickman also noted the new food safety system will be even more effective with
additional enforcement tools, noting that the Clinton Administration has asked Congress for
authority to fine companies for violations of food safety standards. "We can fine circuses for
mistreating elephants, and we can fine people who sell undersized potatoes and people who don't
keep the right paperwork on watermelons. But we can't fine companies that violate food safety
standards. That's just wrong, and we are working hard to convince Congress to give us this
important power."
While the new system will improve food safety and reduce foodborne illness, Glickman
also cautioned consumers to handle meat and poultry safely. "This new system is a great victory
for American consumers, but there is no silver bullet that guarantees food safety," Glickman said.
"Consumers must continue to follow safe meat and poultry handling labels."
The new meat and poultry inspection system is an historic milestone in the Clinton
Administration's commitment to protecting American families by improving food safety. Other
significant accomplishments include:
�01/23/98
15:40 FAX 202 690 2119
USDA OSEC
12)005
Clinton Administration Accomplishments in Food Safety
October, 1997. President announces new initiative to enhance FDA oversight over
imported foods and develop guidance on good agricultural and manufacturing practices
for fruits and vegetables.
October, 1997. Administration announces public-private partnership to promote food
safety education, that includes the "Fight BAG" campaign .
May, 1997. President announces comprehensive new initiative to improve the safety of
the nation's food supply - "Food Safety from Farm to Table"- detailing a $43 million
food safety program, including measures to improve surveillance, outbreak response,
education, and research.
January, 1997. President announces new Early-Waming System to gather critical
scientific data to help stop food-borne disease outbreaks quickly and to improve
prevention systems.
January, 1997. Administration requires generic E.Coli testing for all meat and poultry
slaughter plants and Sanitation Standard Operating Procedures.
August, 1996. President signs Safe Drinking Water Act of 1996. The law requires
drinking water systems to protect against dangerous contaminants like crytosporidiuro,
and gives people the right to know about contaminants in their tap waterAugust, 1996. President signs Food Quality Protection Act of 1996, which streamlines
regulation of pesticides by FDA and EPA and puts important new public-health
protections in place, especially for children.
July, 1996. President announces new regulations that modernize the nation's meat and
poultry inspection system for the first time in 90 years. The HACCP systems approach
emphasizes science-based controls and microbiological testing directly targeted at E. coli
0157:H7 and Salmonella.
December, 1995. Administration issues new rules to ensure the safety of seafood using
the HACCP regulatory approachOctober, 1994. Administration declares E.coli O 157:H7 an adulterant in raw ground
beef and initiates a nationwide sampling program in federally inspected plants and retail
stores that process ground beef.
March, 1994. Administration requires safe handling and cooking instructional labels on
raw meat and poultiy products.
�01/23/98
15:40 FAX 202 690 2119
USDA OSEC
TALKING POINTS FOR MEDIA ROUNDTABLE
Thank you for coming today to talk about HACCP implementation. This is an
historic event for USDA, for industry, and for the American public I want to make
several points and then open things up for questions.
REVOLUTIONARY CHANGES FROM THE OLD SYSTEM
*
Focus is on preventing problems in thefirstplace, instead of catching problems
after they occur
*
Using science and microbiological testing directly targeted at reducing dangerous
pathogens, instead of only relying on inspectors senses
*
Plants test for generic e.coli and use the test results to monitor their HACCP plans
USDA tests for salmonella
Plants are required to reduce amount of meat and poultry that is contaminated with
salmonella. This is perhaps the most fundamental change.
USDA used to say pathogens were naturally occurring.
Now we are saying that plants must reduce the amount of contamination.
COMMITMENT TO MAKING HACCP WORK
We are committed to making HACCP work. There are going to be some bumps in
the road, but we are going to stay the course.
We will be successful if we stick to the fundamental regulatory philosophy that
undergirds HACCP. That is, industry is responsible for producing safe food, and
our job is to hold them accountable for meeting their responsibilities.
I emphasized this point when I met with industry leaders. They MUST take their
responsibility seriously, EVERYDAY. And we WILL hold them accountable when
they do not
ROLE OF INSPECTORS UNDER HACCP
Rather than a one-size-fits all approach, each plant has designed its own plan to
meet USDA food safety standards. This is not a top-down, command and control
approach. Regulatory reinvention.
�01/13/98 15:41 FAX 202 690 2119
USDA OSEC
®
With this newflexibility,plants are also assigned greater responsibility for
producing safe food.
USDA inspectors, however, will continue to play an essential role in ensuring food
safety.
Inspectors will continue to visually inspect carcasses, document food safety
violations, verify a plant's compliance with its HACCP plant, and to take direct
action when necessary to prevent contaminated product from reaching consumers.
These actions will form the basis for shutting plants down by suspending inspection
if a plant is repeatedly failing to meet food safety standards.
FAIR BUT FIRM ENFORCEMENT
We are going to be FAIR, and we are going to use COMMON SENSE. But we are
also going to be FIRM.
We do not want to shut plants down. But we can and will if their SYSTEMS do not
meet these new food safety standards. This is also a fundamental change from the
old way of doing business.
Under the old system, inspectors would impose corrective actions when there were
violations and prevent unsafe food from reaching consumers, but FSIS would allow
plants to accumulate large number of deficiencies without taking action to suspend
inspection and shut plants down.
Under the new food safety system, FSIS has a new tool to stop operations where
there is a pattern of deficiencies and insist on preventive measures to improve food
safety before a plant can reopen.
1997 illustrates this difference. FSIS has shut down 20 plants since the first phase of
this new system went into effect in January of 1997. This is an increase of over 200
percent from the 6 plants that FSIS shut down in 1996.
I want to make one final point about enforcement. No one wants to shut a plant
down, but we can and we will where a plant's food safety system is not working.
But I think CIVIL PENALTIES would help us address problems sooner rather than
later and in a manner commensurate with the circumstances.
007
�01^3/98
15:41 FAX 202 690 2119
USDA OSEC
n,
igloos
LEADERSHIP AND OPEN COMMUNICATION
I challenged industry, producers and consumers to provide leadership as we
implement this new system.
Change of any kind can be difficult, and this is a MAJOR culture change, for
industry and for the agency.
We were successful in developing this new regulation because we actively and
openly engaged all viewpoints.
We are going to continue that approach as we proceed to implement this new rule.
�v
JN 2 . 1 9 8 4 3 P
A. 3
9 :9M
O F C O SCEAY
F I E F ERTR
N. 6 5 1 P 12
O 2
. /
UNITED STATES DEPARTMENT OF EDUCATION
THE SECRETARY
FAX TRANSMITTAL
TO
PHONE
PAX.
FROM
PHONE H Q ) -
^
PAGE(S) TO FOLLOW
}
1
I
FAX
401-2098
DATE
MESSAGE:
»C,
M
CONFIDENTIALITY NOTICE
THIS TRANSMISSION IS INTENDED FOR AND RESTRICTED TO THE NAMED
ADDRESSEE ONLY. I T MAY CONTAIN CONFIDENTIAL AND/OR PRIVILEGED
INFORMATION. I F YOU RECEIVE THIS TRANSMISSION IN ERROR, YOU ARE
NOTIFIED THAT YOU ARE PROHIBITED FROM READING, COPYING, OR
DISSEMINATING THE TRANSMISSION. PLEASE CALL 202-401-3000 TO
ARRANGE FOR RETURN OF ANY TRANSMISSION SENT IN ERROR. THANK YOU.
BOO INDEPENDENCE AVE.. S.W. WASHINGTON, D.C. 20202-0100
�' J N 23. 1 998 43 P
A.
:9 M
OFFICE O S C E A Y
F E RT R
N . 625 1 P 2/2
O
.
REGULATION INSERT FOR
STATE OF THE UNION
I believe strongly in giving teachers and principals thefreedomandflexibilitythey
need to raise standards and turn around failing schools.
Since 1995, the Department of Education has eliminated one-third of all of its
regulations and two-thirds of all regulations governing elementary and secondary
programs. This is a remarkable record. At the same time we have maintained all
essential civilrightsand special education protections.
i
We intend to do more. Twelve states now have the power to waive federal
education rules. I ask the Congress to let me expand this '*ed-flex" program to
any of the 50 states that chooses to accept this opportunity.
I challenge eveiy Governor in the country to match this record. We pledge at the
federal level to do all we can to increaseflexibility.But the true regulatory burden
that too often entangles teachers and principals is at the state and local level.
�Jan 25'98
TEL:
U.S. Department
of Transportation
Commandant Press Secretary
United Stales Coast Guard
United Statu
Coaat Guard
18 = 06 N .001
o
2100 Second Street, S.W.
Washington. DC 20593-0001
Staff Symbol: G-C
Phone: (202) 267-1748
Home: (703)603-5462
25 January 1998
From; CDR Jeff Karonis, USCG
To:
Jordan - White House Staff
Subj: INPUT FOR STATE OF THE UNION
Re:
Rodney Slater, SECDOT
1. The Coast Guard, the nation's lead agency for maritime drug interdiction, seized or assisted
in the seizure of 103,617 pounds of cocaine in fiscal year 1997. This is the Coast Guard's
highest annual cocaine seizure total in its history and triples the Fiscal Year 1996 total.
2. Arrests of maritime drug traffickers by the Coast Guard were up 1000% in Fiscal Year 1997
(from 23 to 233).
3. President Clinton covered these successes in his remarks with the Coast Guard in Miami in
December 1997.
P.02
�Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
AND TYPE
009a. memo
SUBJECT/TITLE
DATE
Kent Markus to Michael Waldman; RE: DOJ SOTU Thoughts &
Phone number (2 pages)
01/24/1998
RESTRICTION
P5, P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
OA/Box Number:
14459
FOLDER TITLE:
Memos from Cabinet Secretaries
2006-0469-F
dbl939
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)|
Freedom of Information Act -15 U.S.C. SS2(b)|
PI National Security Classified Information |(a)(l) of the PRA|
P2 Relating to the appointment to Federal office 1(a)(2) of the PRA|
P3 Release would violate a Federal statute 1(a)(3) of the PRA|
P4 Release would disclose trade secrets or confidential commercial or
financial information [(a)(4) of the PRA|
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA|
P6 Release would constitute a clearly unwarranted invasion of
personal privacy 1(a)(6) of the PRA]
b(l) National security classified information 1(b)(1) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information 1(b)(4) of the FOIA]
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy 1(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions 1(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�02/18/1996 07:48
To:
3013206265
MkhaefVte&TBn, Bruce Reed, Rahm Emmanuel
&
PAGE 01
SUSAN G. S KENT M
.
w
tj
MMRNU
EOADM
From:
Kent Markus [202/514-3008 ( o ) j # M l i l ) » K h ) ]
q
Subject: DOJ SOTU Thoughts (faxed - 2pp. total)
H^o^a J
Date:
January 24, 1998
Hopefully, thisfellsin the category of better late than never; .views of various DOJ
principals and components are belcw:
1) Our highest priority is that the speech NOT indude any announcement about the
management of southwest bonder issues that has not been specifically reviewed and approved
by the Attorney General. If there is an intent to discuss this matter in the speech, we ask that
you rely only on representations from someone at DOJforthe proposition that DOJ has
signed off on any given proposal - obviously, we've had difficulty in this area.
2) The Attorney General'sfondestwish - expressed to me on several occasions in the last
week - is that the speech include a reference to an initiative of hers (no credit to her needed)
with which I believe only Bruce is familiar. For some time, the AG has been leading a multiagency project (currently, 12 cabinet level agencies are involved) known as the Federal
Support for Communities Initiative (FSCI). The thrust of this ReGo-esque initiative is to try to
improve the way the federal gcwemment provides assistance (both financial and human
resource) to communities. Currently, thefederalgovernment provides assistance that local
communities cant find out about, cant get because of cumbersomeAjnnecessary regulations,
cant access when they need it in their budget cycle, can't use for the purpose they need it
although one would expect they could, etc.
The FSCI seeks to organize information about available federal assistance according to subject
area rather than organizing information as we generally do now ~ by administering agency. A
community would then be able to find out about, for example, all job training programs
whether administered by Labor, Education, HUD, Defense, Agriculture, Americorps,
Commeroe, Veterans' Affairs, or some other agency. But in addition to improving the
information available to communities, the FSCI is also involved in seeking to assist
communities gain access to federal resources in the manner most useful to them.
In the after-school part of the child care package, the President already announced that FSCI
(without using the name of the project) would be assisting communities trying to access and
make the best use of the many different after school programfederalfunding streams. This is
only the first of efforts in a number of different areas to work with communities in helping
them get and use the assistance the federal government has for them. As noted above, the
AG would sincerely appreciate any reference to this overall effort somewhere in the speech.
3) Crime. We assume that the standards items will receive mention: declining crime rates,
70,000 of the 100,000 cops funded, a pushforthe passage cf juvenile justice/youth violence
legislation and the reauthorization of the Violence Against Women AO. this session, and, of
_
Clinton Library Photocopy
�02/l(J/1996
07:48
3013206265
SUSAN G & KENT M.
.
PAGE 02
DOJ SOTU Thoughts
Page 2
January 24, 1998
course, Brady (more than 300,000 prohibited purchases blocked arid thefeetthat since the Supreme
Court said that state and local governments could volunteer to do Brady checks but couldnt be
required to do so, law enforcement officials in every state, covering more than 99% of the population
of the United States, have stepped up to voluntarily conduct Brady checks because law enforcement
officials know that Brady checks prevent crime).
We'd like to encourage one crime "theme" which will serve us well all year if established in the
SOTU: 21 st century crimefightingwill be about effective use of technology and information. There
are several reasons we believe it would be good to set out "technology and information" as our next
crime fighting emphasis.
First, from a policy standpoint, once we've deployed 100,000 new cops, we'll have met the major
human resource need in crime fighting - the challenge is already becoming the effective use of
technology to maximize the value of that human resource commitment. Second, there are dozens of
crime fighting technology and information initiatives contained in the President's budget and otherwise
underway at DOJ and elsewhere. Establishing a technology and information crime fighting theme in
the SOTU will give us a message hook we can use all year as we roll out initiative after initiative.
Finally, law enforcement would love to hear the President emphasize the importance of technology
and information in crime-fighting - it's critical to them.
Examples of some of the technology and information efforts underway which may play out this year
include:
+*•
improved DNA labs
the development of prototype "smart guns", "remote gun detectors", and "alert cars"
»*
*
the development of new x-ray technology for the detection of smuggling at borders
»•
new crime mapping and statistical software which permits strategic crime-fighting
**•
improved computer tracking of sex offenders, gun running, and gang activity
**•
the development of the national IAFIS (digitized fingerprints) system
»•
the implementation of the National Instant Check System for running Brady
background checks (by law, November 1998)
improved documentation authentication technology for catching illegal aliens
»*•
improved criminal history records systems in the states - used for charging decisions,
sentencing decisions, officer safety determinations, and a range of other purposes
»*•
the continued development of "less than lethal" weapons for use by law enforcement
the opening of the National Advocacy Center in Columbia, SC in April at which
federal and state prosecutors from across the country will be trained
»*•
dozens of reports that invariably come out from our grant bureaus which can help
emphasize the information part of a "technology and information'' theme, showing
that we're fighting crime smarter and smarter all the time.
Hope there's some stuff here that's useful to you! Call if I can provide needed detail.
�Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
AND TYPE
00%. memo
SUBJECT/TITLE
DATE
Kent Markus to Michael Waldman; RE: DOJ SOTU Thoughts &
Phone number (2 pages)
01/24/1998
RESTRICTION
P5, P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Michael Waldman
OA/Box Number:
14459
FOLDER TITLE:
Memos from Cabinet Secretaries
2006-0469-F
dbl939
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - |S U.S.C. 552(b)|
PI National Security Classified Information 1(a)(1) of the PRA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
P3 Release would violate a Federal statute [(a)(3) of the PRA]
P4 Release would disclose trade secrets or confidential commercial or
financial information |(a)(4) of the PRA]
P5 Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy 1(a)(6) of the PRA]
b(l) National security classified information 1(b)(1) of the FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA]
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
information [(b)(4) of the FOIA)
b(6) Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
financial institutions 1(b)(8) of the FOIA]
b(9) Release would disclose geological or geophysical information
concerning wells 1(b)(9) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
�02/18/1996
07:53
3013206265
SUSAN Q & KENT M.
.
To:
MkfedV&lfrnari, Bruce Reed, Rahm Emmanuel
& Paul Begala
From:
Kent Markus [202/514-3008 fo):ISIC/(l(6)l^rh)]
PAGE 01
c
^
~qy^
Subject: DOJ SOTU Thoughts (faxed - 2pp. total)
Date:
January 24, 1998
Hopefully, thisfellsin the category of better late than never; .views of various DOJ
principals and components are below:
1) Our highest priority is that the speech NOT include any announcement about the
management of southwest border issues that has not been specifically reviewed and approved
by the Attorney General. If there is an intent to discuss this matter in the speech, we ask that
you rely only on representations from someone at DOJforthe proposition that DOJ has
signed off on any given proposal - obviously, we've had difficulty in this area.
2) The Attorney General's fondest wish — expressed to me on several occasions in the last
week — is that the speech indude a reference to an initiative of hers (no credit to her needed)
with which I believe only Bruce is familiar. For some time, the AG has been leading a multiagency project (currently, 12 cabinet level agencies are involved) known as the Federal
SupportforCommunities Initiative (FSCI). The thrust of this ReGo-esque initiative is to try to
improve the way the federal government provides assistance (both financial and human
resource) to communities. Currently, thefederalgovernment provides assistance that local
communities cant find out about, cant get because of cumbersome/unnecessary regulations,
can't access when they need it in their budget cycle, cant use for the purpose they need it
although one would expect they could, etc.
The FSCI seeks to or^nize information about availablefederalassistance according to subject
area rather than organizing information as we generally do now - by administering agency. A
community would then be able to find out about, for example, all job training programs
whether administered by Labor, Education, HUD, Defense, Agriculture, Americorps,
Commerce, Veterans' Affairs, or some other agency. But in addition to improving the
information available to communities, the FSCI is also involved in seeking to assist
communities gain access to federal resources in the manner most useful to them.
In the after-school part of the child care package, the President already announced that FSCI
(without using the name of the project) would be assisting communities trying to access and
make the best use of the many different after school program federal funding streams. This is
only the first of efforts in a number of different areas to work with communities in helping
them get and use the assistance the federal government hasforthem. As noted above, the
AG would sincerely appreciate any reference to this overall effort somewhere in the speech.
3) Crime. We assume that the standards items will receive mention: declining crime rates.
70,000 of the 100,000 cops funded, a pushforthe passage of juvenile justice/youth violence
legislation and the reauthorization of the Violence Against Women Act this session, and, of
m
Clinton Library Photocopy
�02/18/1996
07:53
3013206265
SUSAN G & KENT M
.
.
PAGE 02
DOJ SOTU Thoughts
Page 2
January 24, 1998
course, Brady (more than 300,000 prohibited purchases blocked and thefeetthat since the Supreme
Court said that state and local governments could volunteer to do Brady checks but couldn't be
required to do so, law enforcement officials in every state, covering more than 99% of the population
of the United States, have stepped up to voluntarily conduct Brady checks because law enforcement
officials know that Brady checks prevent crime).
We'd like to encourage one crime "theme" which will serve us well all year if established in the
SOTU: 21 st century crime fighting will be about effective use of technology and information. There
are several reasons we believe it would be good to set out "technology and information" as our next
crime fighting emphasis.
First, from a policy standpoint, once we've deployed 100,000 new cops, we'll have met the major
human resource need in crime fighting — the challenge is already becoming the effective use of
technology to maximize the value of that human resource commitment. Second, there are dozens of
crime fighting technology and information initiatives contained in the President's budget and otherwise
underway at DOJ and elsewhere. Establishing a technology and information crime fighting theme in
the SOTU will give us a message hook we can use all year as we roll out initiative after initiative.
Finally, law enforcement would love to hear the President emphasize the importance of technology
and information in crime-fighting - it's critical to them.
Examples of some of the technology and information efforts underway which may play out this year
indude:
»*•
improved DNA labs
the development of prototype "smart guns", "remote gun detectors", and "alert cars"
»+
the development of new x-ray technology for the detection of smuggling at borders
**•
new crime mapping and statistical software which permits strategic crime-fighting
»*•
improved computer tracking of sex offenders, gun running, and gang activity
the development of the national IAFIS (digitized fingerprints) system
»*•
the implementation of the National Instant Check System for running Brady
background checks (by law, November 1998)
»*.
improved documentation authentication technology for catching illegal aliens
»*•
improved criminal history records systems in the states — used for charging decisions,
sentencing decisions, officer safety determinations, and a range of other purposes
the continued development of "less than lethal" weapons for use by law enforcement
»*
the opening of the National Advocacy Center in Columbia, SC in April at which
federal and state prosecutors from across the country will be trained
»*
dozens of reports that invariably come out from our grant bureaus which can help
emphasize the information part of a "technology and information" theme, showing
that we're fighting crime smarter and smarter all the time.
Hope there's some stuff here that's useful to you! Call if I can provide needed detail.
�
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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Michael Waldman
Description
An account of the resource
<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
A point or period of time associated with an event in the lifecycle of the resource
1993-1999
Identifier
An unambiguous reference to the resource within a given context
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
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.
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
The type of object, such as painting, sculpture, paper, photo, and additional data
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
A name given to the resource
Memos from Cabinet Secretaries
Creator
An entity primarily responsible for making the resource
Office of Speechwriting
Michael Waldman
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 39
<a href="http://clinton.presidentiallibraries.us/items/show/36404"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
Identifier
An unambiguous reference to the resource within a given context
2006-0469-F Segment 2
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
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Medium
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Preservation-Reproduction-Reference
Date Created
Date of creation of the resource.
6/3/2015
Source
A related resource from which the described resource is derived
7763296
42-t-7763296-20060469F-Seg2-039-004-2015