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THE WHITE HOUSE
WASHINGTON
November 8, 1994
A MEMORANDUM FOR GENE SPERLING
SHERYLL CASHIN
McCOW~"
CONSOLI~TION
FROM:
GAYNOR
SUBJECT:
YOUTH
CC:
JEREMY BENAMI
BELLE SAWHILL
OPTION
Attached you will find a copy of our memorandum recommending
the option of consolidating youth programs. By sending you this
memorandum~ we want to reiterate that this bold reinvention plan
- to create a single funding mechanism called a Youth Development
Fund - should be included in the memo to the Principals. As
Alice Rivlin said, it is important to push the envelope with a
"break the crockery" proposal as we consider what options to
present ·to the President ~
Please note that this memorandum has not been prepared in
collaboration with the agencies. Therefore t the list of programs
should be viewed as nothing more than an example to illustrate
the possibilities. (The programs we have suggested are ones that
share common goals~ are closely intertwined and somewhat
duplicative. They are not ones that represent Presidential
investments such as those included in major legislation, recently
enacted.) If there is sorne interest in considering this
proposal~ al~ subsequent work will be done in conjunction with
the Departments of Health and Human Services. Education, Labor,
Agriculture and Housing and Urban Development.
/
�November B, 1994
A MEMORANDUM FOR SHERYLL CASHIN
FROM:
JEREMY BENAMI
BELLE SAWHILL
GAYNOR McCOWN
SUBJECT: SINGLE YOUTH DEVELOPMENT GRANT FUNDING
cc: CAROL RASCO
BRUCE REED
BILL GALS TON
Riding the wave of public discontent with federal
bureaucracy, reinvention needs to be a more central element of
our message and program. As with other target groups, a myriad
of service programs target youth" Therefore, we are proposing
the possibility of bold I new legislation to dramatically change
how the federal government funds these services~
Bolder than
the waiver bill~ this proposal would require the consolidation
and elimination of programs, rather than providing flexibility
within the existing ones. This single federal youth development
funding - "Youth Development Fund" - would send dollars to
states, probably by formula, and they in turn would allocate to
localities. Any such proposal would find enormous grass-roots
support from community groups to state and local elected
officials.
A bold~ highly visible commitment to consolidating, reducing
and simplifying federal programs in order to encourage local
flexibility 1s in line with the President's assertion that the
federal g"overnment is at its best when it provides top-down
support for bottom-up reform. 8y freeing local communities from
the constraints of narrow categorical programs and giving them
the opportunity to design programs that meet the needs of their
youth population, we would indeed be sending a good message to
start off the second term.
In line with the key principles of the Adm1nistrat~on's
Mreinventing government" philosophy, this single funding
mechanism would encourage mission driven programming through a
strong emphasis on results. By setting forth guidelines and
rewarding creativity, the federal government would be empowering
�local com~unities to define their own goals and develop
strategies to achieve them. Following are some examples of the
potential advantages of a consolidated youth program:
•
Less red tape and better services to youth.
•
Rather than creating a new government bureaucracyz a
single funding mechanism would build on the strength of
existLng community-based development organizations.
•
The consolidation of programs would encourage
collaboration and healthy competition among service
providers.
•
The most sweeping of bold options could restructure
•
A single funding mechanism would encourage the
leveraging of federal funds with private resources.
•
The elimination of programs could significantly
decrease the number of people it would take the federal
government to run the programs. and those savings could
be added to program dollars available.
dozens of programs involving hundreds of millions of
dollars.
Despite the potential positive outcomes, there are clearly
some disadvantages we should be aware of as we consider pushing
such a proposal. They are:
•
Congressional reaction rrom committees and members who
have created and now oversee the range of categorical
programs will not be favorable.
•
Advocacy groups that represent grantees currently
funded by categorical programs may not be pleased.
•
There may be question about whether or not youth
services is the area in which the Administration should
use its political capital to promote one truly bold
reinvention strategy.
Keeping in mind, both the potential positive and negative
outcomes of pursuing a strategy such as the Youth Development
Fund~ we :nave worked out some possib~e scenarios that may be
helpful in considering this option.
Please note that we have
done this based on little information or input from the relevant
agencies. If there is some interest in this proposal~ all
subsequent work will be done in collaboration with the
Departments of Health and Human Services~ Education; Labor~
Agriculture and HOUSing and Urban Development.
�In determining which programs to include. we have used the
following criteria:
+
programs targeted to youth in.distressed
communities ~- "at risk" and disadvantaged youths.
+
programs that have new grantees every one or two
years as opposed to programs that have on-going
grantees~
+
progr811is geared toward "positive development'" and
personaL responsibiLity.
+ Programs
that are not included in major
legislation. recently enacted such as School to
Work, ESER, etc ....
•
Non-school programs.
Based on the above criteria~ we have selected 20 different
programs as candidates to become part Of the Youth Development
Fund.
All of these programs - 11 from the Department of Health
and Human Services. four from the Department of Education, two
from the Department of Labor, two from the Departmenr. of Housing
and Urban Development and one from the Department of Agr~culture
- share common goals and are closely ~ntertwined, often serving
the same client groups and in some ~nstances, the same client.
These redundancies foster inefficiencies and make it almost
impossible to determine the effectiveness of an individual
program and indeed the system as a whole. This overlap has
prompted us to suggest this bold reinvention strategy.
The total funding (in millions) of the 20 programs is
$2,094.673. This amount - $256.l4 from HHS; $78,2 from DOE;
$1,702 from DOL; $10 from DOl\; and $48.473 from HUD - is based on
FY 1993 1:unding~ If we excluded the two biggest programs -- .JTPA
llB ($1 billion funding in FY 93) and JTPA lIC ($702 million
funding in FY 93) -- the funding would total 8392.673. Both
aTPA programs are administered through the Department of Labor.
The JTPA IlB - Summer Youth Employment and Training program
- is designed to enhance the basic educational skil~s of youth:
encourage school completion or enrollment in supplementary or
alternatlve school programs: provide eligible youth with exposure
to the world of work: and enhance the citizenship skills of
youth ~ 'l'he program serves individuals age 14 through 21 who are
economically disadvantaged or eligible for free lunch under the
National School Lunch Act.
Similarly~ JTPA lIe - Year-Round Youth Program - is designed
to improve the long-term employability of youth; enhance the
educational, occupational, and citizenship skills of youth;
encourage school completion or enrollment in alternative school
�•
programs; increase the employment and earnings of youth; reduce
welfare dependency; and assist youth in addressing problems that
impair them from making successful transitions from school to
work, to apprenticeships. the military, or postsecondary
education and training. JTPA lIe provides job training and
educational services to economically disadvantaged youth ages 16
through 21.
It is also important to note that under the current
legislation, not less than 50 percent of those served under JTPA
lle must be out-af-school (different from those who have dropped
out of school); and partiCipants who are school dropouts under
the age of 18 must attend a school, or program such as a high
school equivalency program.
Attached you will find a more detailed description of the 20
programs we are recommending as candidates for consolidation~
Please note that this is not intended to be a final list but
rather an example to illustrate the possibilities.
�.'
PROGRAM/AGENCY
TARGET YOUTH POPULATION/ELIGIBILITY
FUNDING
HHS
Corom. Partnership
Youth At-Risk for Substance Abuse
$ 105.1
Youth At-Risk for Alcohol, Tobacco,
or Other Drug Use I Abuse I 5-20
$
56.4
$
30
Public Housing
$
29
Determined Annually / Under lS
$
10.64
Low-Income Youth
$
9.5
$
5.0
Income Families
$
3.a
Significance
Di!!advantaged Youth
$
3.2
Disadvantaged Youth
Oisadvant-aged Youth
$
2.5
Youth Opportunities
Unlimit.ed
Youth in High Poverty Areas
$
1
Counseling service!! for 12-21 Year
Olrls to Complete Hi9h School and Pursue
Post-Secondary Educat.ion; Act.ivities to
Encourage Drop-Outs to Return to School
$
65.S
Promote Community Literacy and Mentoring
Programs
$
5.3
Demo Grant
High-Risk Youth
Demo Program
Target Cities
Adolescents, Minorities, Residents of
Public Housing
Critical populations
Youth Gang Drug
Prevention
Nation~l
Youth sports
Program
Minority Male
Initiative
Demonstration Partner
ship PLogcara
CSAli' Programs Nat. 'I
Youth 10-21, Minorities, Residents of
j
10-16
Youth At-Risk of Substance Abuse,
Dropping Out, Unemployment. Fatherhood
Young ¥~nority Males, Teen Parents,
At Risk School-Aged Youth, and Low-
DOl!
Talent Search
Student Literacy
and Mentoring CorFs
School, College and
University Partnership
Eisenhower Leadership
Program
Skill !Eproveme~t and Preparation of
Low-Income Youths for Continued Education
or Employment
3.5
Development of Student Leadership
3.5
�•
DOL
Summer Youth Employment
and Training
Basic and Remedial Education, Work
Experience, Employment Counseling a~d
Related Services to Youth age 14-21
$1,000
Education and Training, Tutoring.
Mentoring and Related Services to
Youth ages 16-21
$ 102
Job Training and Work Experience
for Eco~omical:y Disadvantaged Youth
$
Sports, Cultural, Recreational,
Education Activities for Resident
Youth
$
Prevention aod Intervention
for youth At-Risk
$
Year-Round Youth
Program
HUD
Youthbuild
Opportunl.ties
Youth Sports Program
40
8.753
DOA
'louth At-Ri.sk
~tivities
10
�Page I 01 1U
'"
THE WHITE HOUSE
O::fice of the Press secretary
For
1:n1!'H~di;:;t~
December 15,
Release
;'l/'lCr:(,:R()!'H;) FIR [!-: ';
1994
:,I~
8Y
SEtlWR
;;DMHHST~ATION
OFTICA:5
December 15, 1934
The ?'ooseve:t Reom
5:25 P.M. ESt'
s:-::!:o~
""
:;I!;m;~;'t.:·Le
.1l..m-:!N13'l'Rl\T10U
some ot
orner;..:,,:
i,,\~:..
:.~(')
~:
:.'
i;
! C':':),
t~u
main pc:'r:cs 01. the speec:--, this evening.
!:U".:;..:-:d!y, l:h:: Pr8S1ttC:'lt, as yo.! k:'low, is spe,d;ing ror 10 minl..ltes.
'~n;: Pr"~sidefl:' s basically g;:;~ng -:0 co dC.:.i:S Some pLa:r. talking W1Ui
~'1's got to be very dirac'.:.
1 think he's going to be trying to speak frOr:l the heart ir: terms Ot
the people of the Urllted Staxes -:;o:)ight,
what he thinks needs to be done lfl this cO'..lntry over :':;'0 r:ex::
V,,;:l
'y8",5,
Basically he's going to talk about what this country is
the challen",es and the prcbt';>lEs 'Chilt are
"hout -- i;;5 screngt;)s,
·c'\,:c;'~I'.i'::!
iT.,
.!'•. j:~!
t.,!,rt:~2ctarly
..
fo;'
'iori:;~r';
L<,mi:>~s,
:Ien ,10 i.tlso W"Il:"S \:0 l",;,: {.i)D';\
th'-" llI.;.ddle <::1;17'1$
-'".<.;:"€'
s:,,,ps
:":1<:1:"
I:he
,-neffise1ves need to tuke in order '-0 keep tile /\m?!.'il:6rl 1)r-<.ZiIJn
aliVe.
He basically has lived the American Dream, and he's asking
otners to beL.eve i:> it iII11Bin cs \-Ie11 ,
;~L:-;;;€:flS
The main
thrus~
and the target for the speech is aimed
fa~ilies with regards to
He's 90:;;0 to spr2ak ::0 t!;e eCO;lc;;)ic recovery,
at tryinQ tc provide some help to working
::.h(J eCCmCmlc r€ c overy.
';,':0: "1::;:" :.,hat: he: was ilbls: ::0 g0t it Iii picc;:, the fa<.t '.',to?!\: -- l":iol'VQ
:>',"n " ;0~ c<~ (joQe CO!!h? (rom the fact that m;~ econ::>:ny 1n doi:lg much
:,"'-:!"~-, t"':~ ;,:.n~:.. ODV:tH::Hy i: jo:: of :,;wtil~e$ :-J,"i'" -:0'
:'.r..~. 1n,1:"
; ..,.,,;\'.,-",. ,,;'d [h(;te:"cn~, ('i'iv:uJ ;ll<lce ., do\\'~ :)"\':;,.,,,;,~ .< " :;,';",i{;:e
.. , ·:;:f,~· ,t·:-: '~J:" If! t-)i? ~,;~'--\:i0. '·~;::::~;r.OlTlC pi",:: w:th
:J:: i;,;; :10(J I),~omr:
'.,;.;
'~';~:l;:
/:.III''':'! ':or:s;
;':'<11' P!:Dv:o¢d nL~ef';Q a;m05L 15 'lIii',:Oil Nc..;';:~n9
that.: Lhe time has come ;10W to b';:ci td on <::;m; ~'or \-i'orkin\!"
all working families.
Th,! Itlf~in concern chat he s~e.s a.t:'~ tre t;hoiccs -- l.he
diffict.:lt c:lOices, financial choices that. face wor:king lami';':1Cs right
no".·.. '.-m'-;!l it comes to either paying for the education for their
~;'1:1d~'f;:1 ~r rfli;\'.:'"',g ,] chtld h'ithin the home, or t:l:yill~l :::0 S!1ve up tor
" ,", ·':;:"'S''; 0: < :'t:--St notll\?
Cd fot (]0,<1 ~r.~ '..-.Ii th Ci'l~rl~Li'opiu.; i 11J':(:::;5
" ::.;>:' •. ::<? ,'i!l"~ 0: ;:l.l~ .:!!derly ~"t'efj;;.
'inc!'>;; (,..~ :'::11' !onds o!'
:;
: . ' ;;,.
11:t;1;":\V,VW .pub. \v!)itehm:s>.:.gov/uri-n.:sIl2R?urn:pJi:!/oI1HLl;op.gtW .l::-;!; 1)94/12/! S!2.lI.:XL j
111 1/2001
�"
,~l''''lr'~nlS
Ul':'~i.O',
:.: .. :.;
Ln", dfr) part of ~he proposDI.
'!'!",,:
ne tax aed,;cticle
JL5t <is ",0
wou~c!
deIJtl..;-~ib!e
--
:0,; ;,;;,:::
t::5'~
;';o];c;)"
mdt1"~
mon..gage in~erest
!'m goinS to reiW this quote IICm the speech:
"Just b.S we llI.;l.de rr.ortgage l:"lterest tax deduct ible because we want
people to own homes, we shoul<i make college tuition deductible
because we wan\: people (.0
<]0
to college,"
So he's proposing that tuition for college -- community
co.llege, gradu<'Ite school, professional schools, vocational schools,
worker crainjng after high school would be fully deduct:ible up ;:0
S:O,ono a year for famillos mlkillg up to $120,000 a year.
be:!S!v,!;l
(,If
,~,~
il
';':11.$ is D princlpel C8nLerpi~G(:,
He'!,:; 'Jery -- he
:..!,,-,t tnis .;ounLry, in CQrmS oi' itA :'u:.:urc, i,;; beL[c'c
Ot"",~.·~y
O;:;'-'~I
jr1VGSC
1,-)
our
cr,ilcJl'(~i1
iHid
1 rlVI'JS I:
o
[JLei
SENIOE ;\DMIN1STr'.!\'f!~)N (li·::-}·:U,t,:
r;or.p!,;tely i>~ $1,::0, 001'1.
~:."r:.$
,»;I~
P~kj:><:,::>
'2cll,caLJ.o;o,
Up to S1D,00D pel' $12'J,000
SENIOR ADMINISiRAT:ON OFFICIAL:
p:-,... s,~·",
;:I\e:~'
til.ding 1:01e or lio:.:1
Q
ir,
aui.: cQ;;,ple::ely
""~
Up to
·V;
$~O,00C
•. , " " 1
'"
a year -
"'~."',
i ',"."
5120,0(10,
..:
..
i'
' "
SSNI0R ADMIl\ISTRAT!ON OpnCIAL: Secondly, with reg<>.rds
to filmilies nLising cr.Hdren, we provide a $500 ta;.: credit for
children und(:~- 13. -::ax cc.ts wou~d be made available to any fomily
whose incc~c is :ess t~Bn ;;75, Jao, l\gain, to address -
Q
l'.dJ tlsted gross?
~'F.NTOR
SEi~10R
,).I.~ori
~o
ADMINISTRATION CF:"ICIA:';
,1,DMINlSTRATTON OFfICIAl,:
7~,Oon,
',I
So the 5500 6pplies lO under 8nQ,eOi)
SF.NIOR ADMINISTi\ATlON
you 'let some of it up to S75,000.
Q
OFfICIAL:
"
'/".; \'
t-!mier $75,000
WelL
Up to 5-50,000,
..
!'h':::,
'/<:;('>-;.
Full 5500 up to SuS,OOO?
SEiHOR ADNINISTRA71Q:'-l OFF'lCIAL:
,(J'N
~
\'lL:o(~:.:"r
,LCU;.;!.t,
1[~~
~:,:.:.<::
to us';
t.ilL:
;:0 put :;:;::, ODD tb;-;
a;~d
t.
qi~n
be abli.!
"
. , , : ..
<.;: L,c:\'iciual
;n;)l1e\,' 110i: jl;st:
-~o
I "'", ')'1, ,:l::" ,,0 try to Ge able to withdn:;w money t::alf (,'0S0
,.cco.m:: .. ,:ax ~-;'8e f::>r ed\lcation costs, catastcophic casts, pun::hase
01; a tlrs~ t:Ic-::w:!; ",r,d :;t:Ie c(.I'e ot an elderly parent.
"k
'l'h'%l fourth pi8C>3 that. 1.S part ot the p;,ckago is -
Q
Is that $2,000 a jleaC yO!.: just st.,sh Away or 52,000
11I1P :/lWWW.IHlh.wl1jll.hOlisc.go\./ur!-rC5112R ..~urn:plli:l/lHll;!.(.Op.gtl\ .U:;f I'J'r4!! 2! i 5f2 lext. 1
111112001
�Page 301' 10
"
for life?
SENIOR
OfFICIAL:
$2,000 per year.
The income limits tho,t -- Lhe ones- now ore fer the
I)
SENIOR
have my
ADMIN!STRA~ION
co:l,,~a9u~
ADMHlISTRATl0t~
explain it,
OFFICIAL:
Plenty or ti::le.
I.et me
Go ahead.
S::::i:OR l\DMII\ISTRATIO~ OfFICIAL:
Existitlg lR;:"s wid be
W:lys.
T~3 i;lcome limi'.: will bc1! r,ll,scrd,
fl'"
c0rCl~nt11 Eor couples, $4C,:J8C -- phases out -- it.: stans at. $t,O,OO()
2nd phases Otlt ~~ $50,030.
~tat's current Inw.
UndGr Ltl~ proposnl
the philSe-01H '",1:1 sta;-t at S80,OCO and be (;omple~el)' pht,5ed out Clt
S1lHJ,Q!)O.
So \'1e an:~ e-;parding t:he ..In,.verse 01 pe;)pl~ \"iho C,ln
conLl'ibll(;'::: :;" IRA.::.
In ,-,dd::.:l(Hl
w.~ ar·:) (10L:1(! :- :1;":'"' 't··, PI',li"';\'
fr2~ withdril,,;aLs Jor ttn types of t:;j~r:0S 'tIV ::::0\ !+~"~I~JC -'ll~St IIlentioneci.
changec in
t',';;::'
SENIOR ADMINISTRATION OFFICIAL: Tax defer~ed.
And in
addition. there w1-11 be a option to put in D so~calleCl bac~:-loaded
IRA.
You can put in -- it's nondedUCtible, Out YO,1 ca~ gee ehe ~oney
out tax free,
o
That's couples, the $80,000 to $100,000 --
t~a:.:'s
coupJes?
:.;r:::'~TO!\ i:"OMH~lSTRA1'Ior< OV?Il:IAL:
1';,0 ClH12IH; IRA that .,'0
now, you get: tax ciec.(.;.ccio:!s, a:!d t:'e Hicomc Lr'.Z,t is in tne IRA
is not t"xed until you take ~::: eu::, as we~l as I:"e contribution,
}wve
Q
And the $2,00:) 1$ per person -- for instance, a
couple would get $4,000,
SENIOR ADMINISTRATION OFfICIAL:
I-Jould che,e be ""y
~1
.:,~.:";,
m0t4i:S
:..e.$'
SENIOR ADt-l1NISTRATlON Of'ftCIAlo:
(I'3LFiils,
,
. ; ,".
"
. -..
lev~!s?
.,;;',' j:)c::;:a<:
Q
!\no the-v' ,e both
No.
ilho wO'Jld d'!!cide
SENIOR AD:U\I:STRA::'10N OFF'l'SIA1...:
'm:::rklng Oll: -
We'
1~8
wOl"l:ing O:Jt
tho~e
'Al~':c{:
,:),'
-,
"i
-
;:r::,:'),<
!\U;'li;::(;'('~'/,'~!u;,;
t);'!,'lr.::!,,:
'.,;L'.'S i.:.'~' [""i.n \.3:-; b".1w:ti:;:; Lhilt. ',,·o;,ilu;).,. I': :'_"!:',',l
:,@11.~ .... !>.
·;'I.. . er8 is a iou::t.h elBIFilnt that the ;'!'..:J:;i.r1<.;:I~
.¥,,:~~:,-.i
\~:!l
t.,ji-;
JIl1/2001
�auout :·elbtl:,.g to jon training in which he b«~;uc:'~J.ly ..:! t;, .st:D~':: ::::)6:"
there are billlo:ls of do-'--lars :'lOW that; the gO"Jernrrv-mt spends 0;')
dozens oE different traini:1.g programs.
And he W~lnts to provide
direct payr::er.t. in the form
certificate or grant, to be able to
give that to people directly if ~hey lose their job or want a better
one, so that we're cor::solida~i"g job training programs and basically
0:
providing :hcse paymer.ts directly.
Q
So SOF.,eone loses t;hei:' job, inst0ao of 'Joing to i:)
?r'oqram you qive then S10,000 grand. 0nd ,;,E the proqrDm$
el iminllxed anti they go to some privdt0 place?
t ~2Iininu
a:'<;
S£NWR ADMTNIS7RAT!ON OFFICA.L:
Secretary R<2ich is
wOlking on £1 consolidation of thos-a progt"ams and t.rying to basic,nlly
provide -- empower the individuals themselves as to how to use those
funds for job training.
Q
c00so1idation,
I \l:ld~f~g
:"i .. !.:':~i
1'/
,.,',
.,$
W~ll,
it sounds 11 ke
~liminat:i<m,
tlOt
disappeari~g
Aren't you just
SENIOR ADMINISTRATION OF'FIC~AL:
~"}e2-1.,
;>n;ot t:y rm,:ch the sam'~, 011' 1. t':,,: 0<)51<'£; j '/
vb:"lollS p::"OqCblHS :.;,.-,t ?L~ (;Ij~ :.";''':(',. ,;:r
O"'.;;:;:jy :.:c. ;..~-,<! pr~(')!::~", -;;: :i";,) ,;,.,~: ,;,;,:
~,;: ,':;10 :.¢ qo ;.!:"Qugl1 ;.::~ bU,",)<HF.,;:I<'i
;.'>!
~
~o
::'
l.,i:lk the
::'r:( to ,:;:ut
;·-0!'~L.\;
f,nd
1<..-
,.,,:, :::~'::.
SF.,NIOfi ,c\DMINISTRATIOI" OfFICI!\L:
vlell, they're c:Jt-:ing
Ol,t: il lot 0:: tr:o <:iHerent opt;'.;.'"iltions. L,;;t <Ie ten yo,;, secretary
Reich .... ill give yo,: fI £'Jlle:: bdefing on the specifics of this. bWL:
this is Oele oC tOle ir"prcvemem:s that he's been 100
tor nr.d ;;ry:.n9
to get ;noney dlr:ectly to people.
Q
This is the same ..mount of money?
SEt'HOR .z"DM!NISTRATlON O!7f!CIAL:
(l
8ct: is ;:he!""e
be useo lor job tr.;linil1g?
il
res;:;t""lccio:; on ene (not',e:," -- all l11USt
SENIOR ADMINISTRATION OFFIcrAL:
,
Q
Tha~'s
correcc.
CQn t,;hey star\; 8 busi.ness if t.hey want to
SENIOR ,1WMINlSTR}\,rION OfPIC'rF,L:
~;,.
~I
',",~"
1~
(Iaesn't;
. :::
a((oct
unamploymenL -
And wt",t' 3 tho ilmo\,mt?
--
it.
\1~11
SEK1GR Am-lHHSTtU\71O~ OfFICIAL:
SFJ";ICR ,\C:41NlSTRlI.710N OfFICIAL:
;;\? iY'l:::w€e;: 52,GGe and S3,OO(),
On eh0 -- I dar,'::: know.
Te's S2.000
1.0 ~3,OOG
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I)
And would th<lt be based or.
SEnIOH
inc()r".e·~
Tr.is is a further
Our initial one
hild consolidm::eo several programs. This increases the consolidilcion
-- doz.ens ~- up lO 60 programs, And it would still ask states -- it
would still <lsk thaI:: thel"e be consolidation, go to one place end know
everything,
But rdthel" than even having to go to -- (if'lllUdtl:>le) --to
find out, the grant certificate cc~es to you and then yOO can go to
one :>lace to find out consumar information on what the b",st training
oppor:,u:litiei> are,
There will 5tlll be standards, but as my
col t<::aguB says, t.aking 60 d.Lffel"ent fvndlng streams and
conso}idatinq, and empowering the im:l.ividual c:i:-ectly, and then
ha'Ji;lq choh;~ dnd ill(ormat:t:w p.::ovided ~c [:'1'='(1 on 1:i1~ d:!·:·,"~enl;
r·":·(I;:l'I,
ADMrNlSTRl~Trot'
OFFlCIA~:
r'<:!i;wr:nling of a n.ew reerr.ployment optioi:.
V;j( :ei..·/ 0:
r{~em;;lovneJ1t
o}):.io;,';l.
t;;:'rQR A ::t-::NrS7?A'f.:;:ON Ci'inC.lAL:
be.l.i~v'~
,IS
som::\'/;HJre 00t,,1I;en $:0 ::~lll.o!~ /.Imj $13 bil.lion.
But
:.;t:in'l. i..he :~0Cl'etary wiE b:::ief ".ore detailed -
Q
it 5s
I -"wid,
1
These are 60 programs that wiE disappear?
SENIOR ADMINISTRATION OffICThL:
T;,eir CULdir.q s::l"ea:ns
wi11 be consolidated.
'.I
~',l!lere
o
Is there a price tag for all of this stuff?
is the savings -- in acminis:.nH:ive COSLS?
SENIOR ADMINISTRATiON OFFICIAL:
r ::hint: '... haL we n",,\1 to
(10 is -- Obvlously, Secretary Re.1ch has :he ::;o::e spacii':cs or. en"
proposals, but] thlnk you'te rig:'t, tila: you':·'': bi1.S1Cf;.~ly :':ukl!Hj 60
progr,:;ms bn(J
c]·~at~ng
~)
~;,);.;'
OD,;: fUildir:g streaff,
rQl~:ic'llYI
r't! ~ll::I.illilL3..[:C; P.rO~l!".~ms,
IOU
don'~
h~ve
SENIOR ADMltUSTRATION OFFICIAL:
Q
~roub:e
wj~~
sl'yirlq
do you?
No.
That's what you'l"e dQing,
SSNlOR ADr-ilNIS'7RATlQN OfFICIAL:
consolida:':':"g, and you're consolidating
ThaL' s cor:'EC:';.
We're
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�Page 6 of 10
The main focus of thu has been semetl'.ing that Secretary
werking on for oS. iong time, wh:'ch is basically to -
instead of hi1ving a number of differer.t job training prtlgl'ams ot:t
there, to try co consolidate those and try to get it directly to
people without having to go through the bureaucracy or the
administration of a number of these differt-;"nt prograrr;s that operate
on <1 nt:moer- of difteren::. lev~ls,
I m0an, evor'll)od'>, knows ::hat. \,1(; 8("<2
(jc':"iinq WiUl a :ot o~ very differenL: pro9("ams that: ~W'J(~ a very 111ixed
,,:,~ot"c of ;>:rf.::rmance.
He's tryuHJ to consolidate 11.: and tj',H: it
6: j'c.:::.ly ::0 ind:vicl\;als.
Reich has
be,~n
Q
:';elL c0:1so1idi!ting :nIlJ9G:stS there will b0 a
consolidated '::"edera':' p!'o(,:t"tlm -- ';hese people ean go to d ((;del:nl
proqt"Ilm to qr:t :;r.€ ;:cIlirl1:l9; t~cy st~lJ, ",,::..11 have the opportunity,
is
that right?
I believe that's the
C.;lSC -
(l
\'ihat' 5 the overall cost Ol th>?
SENIOR ,t..DMINISTRAT!OH OF'fIC'Ifl.L:
~,;II.
!:UL -
O):a,/, on :.:he
t~:{
ell';.
which is fully pa1d for. we are lOOKlfH} at approximllt11'l
mGeH', bec3es," o!3viousl y these numb!ll"s g0L scrubbed Eo 1 it::':'e :13 t:'f) ;)r
ttlerl? -- m:t $60 bill.ioD apprmamately Wlth -
itself.
S;;::>J::-OR ADHfhISTHATlOH CFf'lCIAC
number :':'om '96 :';0 2CCO.
;102 pay
'j,~s~
for U\e
~ax
t;utS
lon
til,,;;
lO~~O·!'ii.::~
;;;';";(1;,0::"
:'eL ::iB
clear the c:oCll:ext here because we art! worKinq on the fuller
t)t:dq~:.:,
!tIl"! <I!'~ still ma":i::'<9 decisions with c€ t jilrds
to t.h€ fuller
Dlldqet;, which <-Jill be presented in February. There ate more
decisions to be made nexl: <~eek with regards to that budget, This is
() piece of 'Chat: budget that we're working with.
m,l);''!
I don't want to give the impress~o~ t.hal: ;;hi$ is all of
the budgec. This is a piece of cr.e budg'i!t tha:: !Jays for the tax
cu·~s.
The piece. that pays f:or the tax cuts is the fc~lO'.'Iin,-"
Its
:·r;strucl;:lIrinq -- it's wade up 01: two pieces.
0ne is :-.ajo!."
:·r;sc"uct;urinq in tne f()J.lowlng ag(!!11Cies:
E:n", .. qy, Hf)!}, ~)e:}i:,r.1:IT'8r_t 0:
Tr";'s[jo)'l.;:,1l:;'Dr,, GSA 2.:1(1 1,)le Of'fir.'J of ]lqn;::Jr1~e: r'~;:-,ni"\?'t!"'<I"
';!!,~ ,';,j:-:
,
,
-',.'
". ''',,::'S
. :.<.
'·\'~·:n"~
;.; '.':: .,::lS
L'l~se
0:;; ..).~l':'.
';::;'''Ye;lt
l.i'~Pi~"~I~\"n~I.:,';l,
"r-,,'i
. :.'
~i
~::: ~ ,
-,j,
In Energy, for exampl;,;, there':,; Lr,e elimination of c;
But there's also the reducing o[ a lot of their
lhyers 0: management and supervlsi<H1, They do privatize as wetl.
I'll give you an e:-:ilm?le -- the privatization is the petroleUitl
resecve t:ha::. they lrlould move to try to privatize 'that.
numbe!' ot programs.
in tWO, Housing arId Ul"ban Deva':'opment, th~re is <l
cunso!id.;;tion of thG: progrAms,
Secretary C.isli<llroS h,,;3 dQl/i~lop,~d tl
ve;'y :iH'~e cOhsolioAtion of pr::?(.1;'./ln;:-;, "JL i~~11) :J' I):,',' ·d!!
,.1"''':;'
I"
;,:'<::£10(: ,'." "''''ill 0:5 economic di~v'!!lOpm8'lt.
:.",,; :,·l 'rl"~':~; 1;t., i'oeus ;:I),~ pro<p;,"Hl1:i\,
':":H),5J.1 "~"
,~
-N"
-,:-'2(':->
,h.,"'! is
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�some pnvati::tng of some of Ute programs there, plus tightening up on
h:~ well as the supervision levels there.
management
Which programs would be privatned in
Q.
1'ra r,sport ar: i on?
S£:NIOR .'\DMlf.;ISTRATION O?FIC:AL:
There's only -- the one
U1in: would bd S£hlll off 1.01 toe 2Lr trafEic CO'1tl-ol operatior"
;Llt~
Ul'~C':; ;;1>;:> otners, a',o 1 con':;:' wallt: to 'let lnto ill; of
fU' r:: j ell:6 rs '
~;ENro?
ADM!NrSTAA1'!Orx OE"fICrAL:
~:)e
HUD is basically, what
1 said -- it's consolidacion of their programs in::o funds that are
tnrgoced at housing, at economic develot':r.enc.
T :;hink there's a
couple othe:"s.
But it real:'y is major COf'.so!idation 0: programs.
\'il1at he's done and whlll 1-'.0:'5 recolt'clC,e:1de::: a.=:"2 to ';:ake w!l::>le areas
that now lnvclve many differelit loan p:::ogram$ .'ltlC trYlng to
ccwsc"lda~e those,
1t's " real~y draffiatlC r;roposdl.
Q
Just as an 'exa:nple, hew much is the SPR and the f"-,'C
wQt'th if they're sold off? \>lhat a!"e your estlffiates here?
S2N:OR ADMINISTRAT10U otTIC:AL:
lry t.:> 90: ,,'ou
~h.;)t:.
(;5,\ is the same.
f'le're tr<'J.ns·ielTing u lOL 0': ;:he
ntt:>pol1sibilities to GSA back to agencies and there'S some
privatization that goes in at GSA as well. And che same thing is
truo for aPM where thG!re's some tralning programs that are directed
bil.:k to <.:h0 ilgencies.
But. nevectheless, thec.;;, "re sOllie ::etil'ement
pj'ogrllms tllst, CCI1rillue to operate under arM's GOI)trol.
Q
How much is thaL worth?
SENIOR p,OMHltSTRA1'lON
appro:dmacely :324 billion,
OrFICtJ~L;
Sl.'ery::::'inq you' ');: tii
Q
i\ll at
tha'~
is \';01':.:11
SCl.:SSeO?
SeNlOR. ADN1NIS'I'RATlm1 OFFICIAL~
regards to '~he agencies -
Cvet"y~!"ting
"J>2
jt;S1.:
(iiSCIJSS0':l. hi,,:,")
SENIOR AD:'1nllSTRATIC'-'; OFF:CTA!.:
eSLi:-:-,£lLe rigr,\: ClCW.
Are
Q
!)'!'~'o;:\1
...
:,,,t
~hese
J"Iu!nbe:!:s over fine:
SEi-lIOP. ADMINlSTRArlO!" OFF'!C!.!..i.:
~-
I c;,n'\: \J-"'/€ you thne:
c~bove
·~th~.<:;"!
reinven.::i!'!<j?
.~!,= <'·[)b·.··~
i\:ld
V{)U cUl.T~r;:.ly 5", ..1 in :';"~:.·;~nL::;::': 'JoV",:-:1,:I-:nt:,
;',;'10: "";:-0,:" il:. rps·.rt.:.:;::c:::r:{j.
"h'"l' ...;e "1'",1:"1-';',,. : .should
- ',,,: .)',,,. ;,:-.:: !(;V;;icliJ .:;t ·"'e "dl:;"-~ -;;",{: :.~' !'.~ ....~~.; A~t.~1
j
m<;:Bl"I,
::1
' ; ' " t :.:; >t
"',
,""
1,~q"nl'; LO L'!'~GC u!J0~cjes as wel:
Th,.:: VI'..:'':
t:F'i, on Mom:ay \vt1or lie ;'2'..:'-:::n5 from i<lJssia.
The second piece is :':0 cOntinuo.:
F,·'2:=;.i(if;.,'_ \11_1 SfJ'~':·~ 1:0
tlv~
:'n:;;:,;,;e --
L!~' S
<l
! n:oeze 0:1 spending, [or lin addit.:..on2': twc '/ear-s,
;ti~;Lt. rOt.,
!::i'~:>~'S ;;, J!d~'d freeze (J:'l Giscret':on<.ry s;:~ndintj th<lt {foes tnl'"Qll(jh
'tIB. l";,j \".:ou1d cOntinue tho? hard :::eez€ on cHsccetion,:;,'·; spe;)(ii:tq foc
'~!l' ,',!i(j tnt: 'iei'l~ ;wOO,
That prccuces 552 b~!: iu:: ;l", ""<1\'_;";.}".
Tht!!
r:'1:.';:)
tOti,t of that
is 516 billion, so
~.,;e
have at l<.::i.i;c SIb biilio;; that we
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can use out of the amount right now to help us with regards to the
deficit that we're working on with a larger budget_
Those are the pieces that we're looking at, and, again,
one thing I would remind everybody of is that there is a
hisLOCY here, obviously, for the President with regards to the
middle-income tax cut.
It's something that he advocated three years.
The Vice President introduced, at one paint, a major tax credit
proposal with regards to children.
The President endorsed the
middle-class tax cut.
The House passed it, and, as you may recall,
w!len the Hou~;e passed it, every Republic<ln HOllse member but one voted
against that bi II.
[
'l1l~SS
--
So it is a proposal that we've support.:<~ci in the past;
it's something the Pr-esident supports.
H(~ l'e,~ls !le's bui.Jrli.ng on
what he .·dl·,~tI(ly did with ~~ITC aile! l:hilt it: i.s -- it's ,::ollsis::ent: with
Lh(~ ['loli~i0S wr~'Vf~ bfO'~n trying to ptiL in pli"l(':(~ "" f:'no$ici~nt.
all
:::i~lor
Q
Why
chil.dren?
t~e
cut-oEf at age l3?
W~:y
nOt
have it
j~st
SENIOR ADMINISTRATION OFfICIAL:
1 think what he wanted
to tacget.: kids in the 12-and-below area because those are really
where the co~;ts, principal costs are with regards to caring for kids.
Wi,S
Q
When do the tax cuts take effect?
efiect before the spending cuts?
SENIOR ADMINISTRATION OfFICIAL:
take
When do the ::.a;.: cuts
~tf~ct?
(I
Will they be retroactive Jal1uary 1st?
SENIOR ADMINISTRATION OfFICIAL:
t,lkl~
Do they take
No,
t.:h~y'll
start to
8ffect i.n January 1 of '96,
Q
How come it's less expensive to -
Q
Wait,
wait_
Januacy 1,
'96?
SENIOR ADMINISTRATION OrfICIP,.i..:
the
Is that part
t~·"i;,.:.:,C],
!l.':'CJh~'"
,!'hat's what all
helve been.
pr'oposal~;
Q
Sir, i~ you don't have ).:ids,
unci aIr'eady Dougn;.: your first home,
Q
You're screwed.
you
need any job
in it for you.
cio~\'~
""~aL's
(Laughter_ )
SENIOR ADMINISTRATION OFFICIAL:
I think it's fair to
ii' you Wi,nt to save for your retirement, or if you want to save
rOt· 8duciltion,
s~y
You
SEt~!OR
:,,:
'".l,::
~'cJtil'E=lIlellt,
have riO
o"'-~
to SilVie
:01',
/\DJvlItESTIU\'!'[ON Ol-TIClt,!,.:
Y{)I~' !.~r"
j [
;~::d
Vot: h'iHll
E,
sin'11c:
LO :oave
you
Q
So you only CJet a l:etirement bellefit out of this?
("J
Why are you so l1Iuch rnot-e specl fie
~Ii)out
Lh.::
tel;-:
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�Page 9 of 10
· "
cutS than yO-.J a!"3 a:')ol.:t c:he cetails in spending cuts?
Is it becacse
the detai Is {)[ the spe:1d~ng cuts haven't been decided yet or becaL<se
SSNIO? Am-:.:tHSTRAT.iON OfFICIAL:
~10,
they've f~lly been
decltied, and what we want to do is D.;lSiCl'llly provide a mort'; sp'~Cific
bdefing with all of the Secretari;;;s i;wolved in t:.hese d''!pdn.mr:nLs
t:h<lt would p!"ovide .all 0: the ?£irtkl"ll"cs '.~j:.n Cdl{.ld» ... (') :,!'l'H...
1 mean, these decisions
SENIOR ADMINISTRATION O::fIC::A1:
have all been made.
The Secretal:"ies hQ.'Je all made them, and they're
prepari.ng a brieiioq on tlHl'C.
Q
And when is that brieLr9
goin~1
to b0?
'Today?
':'omorrow:
SSNIOR ADMINISTRJ\T!ON OFfICIAL:
the Cel..,,-,ils tomorcow,
::.r,err
0;'1
!,>Je' 11
provi(j0 sOme of
but the V1.ce ?r8sidc!lt WOU_G 1 i ko to present
:-lond,),:, when he c.?tucns from KUSSla,
SENIOA ADMINISTRATION OFFICIAL!
Q
Now,
Tlii,t' S cor,:¢ct,
is the $16 bill ion extra going to
SC::l: OR !>J)MI NT STRATI Of1 OFFIC1 AL:
deJ.'~ci'..:
Tha t 's cor ree: '
1)
'.'Illy d~c you decide agains: elinnnat.in1j :.::'0
agencies or combine therr.?
Cdbi;H~t
SEntOR ;'.:;t-lINISTRAT!O;; OFf::C!I\L
h~';a!j$'~'
~-:<l;'lkl'i' '#.? wer~n't dol;:q :.:':5 {c: 5:1CW, :-:... iIi!,,", cloinq t.!1!S
or, :,r1.~ I).'!)!$ 0; :'1-'1-:':1() to make good policy dccis:ons clbm:t. how we
";r;",t;~:: s",'.re lIIor.ey i:1 each of these ager.ctes
Eacn one ot these
iJgencies still have major: functions :hat their responsible fol':.
For
example, the Department of E.nergy has all of the nUClear cleanup
cesponsibilities. 'fhat nee<::s to be <::O:1e, has to be done.
Just to
simp1y move Ch<'lt. to ano:::her agency doesn':.: save money; 1.t's billHcally
shiflin9 blocks irOI"", one place to ano:.:her.
r ( t;he Depnrtrr,ent 0.- Trar.s;~octat:..on had the
cesponsibility for: th.)t;. D:1d <';'8 decided it: Wi".S JrrportaLt to k1~ep it
ti1er:~.
[n the Department; O~- 'Transpoctacl0n t:hey h;;v(i major
t:esponsibillt;ics with t'eqidds to sa[.::ty find '-":0 ::(;r;h~. :\OL 10 jus,:
st",ply w[,LY. LIW,''i t't'Olll th08'~ or ~cy to C(i'lJ\S(OI" U1!;m ;';O!llept,-!..;:~ 01s,);
:-:':-'i :,,,'h-! 1'~liJI,. resPo:lsil.li,lit.:y .
.:j6me thing is true ''''ith u:::gards tc
t'."(] CP:-1 hi)';; responsibility for h3Doling
;,,~:c::
Dup".tm3nt :;:::
:a:;i"'*::I'~;)t.
p,O·;:;gct..E;,'1 tor
We would have to transfer th6L respcr.5i:):li::y
"onoe;~:i1G~ (,),50,
So out f,::.eling was, lot'S do Lhe tnhjOt rl)s:'r:!ctc;,'ing
;"f',;,:': ::n,H"OVQS flach of t.:hBse depiirtments, but: al~,ow :.:.h!)HI :':0 Cpe"'''lt<.l!
t!:,_· : GS;}olls:bi 1it1'::5 that they ::eally :lave juriSdic~Jo!l OVi'!:!' {H'1(! :1{:\\'0;
."!:·:p~::i:;·l 1::.
T:ld~ ·... a5 ::ne app::oach we took.
HL;D.
{",::';o:-,.:d
2mp;O:l,~es.
;h" !)('in;; -0;' i: YOl: ti:d;1':': }l<-lve l;hild::ell -- oy ::i~!rt\1
$:0,1',,13 ;0 ~!{10,OOO, 1;.: iJllows a lot :l1.ore peop!,! to q.:~~
il: lrow
<1(1
fi\A
fo~'
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�Page 10 of 10
their retirenent, but it also would ~llow somebody current -- even
besides lhat, the IRA would be allowed to be used for catastrophic
IEedical exp~nse. for long-term unemployment:. And ::hen also the
e:iuca::ion -- the educatlon deduction could also be used for anybody
\..../:o :oses th{~ir job and needs to go back for a cer::if~ed educlltion
pr.ogram.
$;:: there are several ways thai: somebody in that;
sltui'l:'_ion, .d:o already ;)ad t:v:nr first home and didn't n,(lVe yO~:lg
cllildren wculd still oe;H~f1t.
1':'en~'s aLso being db1:;, lo i:l-:;l,:de
helping theil' (,:hilnt'(H) save for thes\~,
So r thinr. ,,:: ;:O'l'H'$ quite
,
i\
lot for work:ng families.
Q
:ll':"h
0:'
; ~',~
';;('l(l
Where does :::he ::liddle class bn;,;:t~e A~d then, how
bi! lion g00S :::0 rlH}Se ()elol" t;;a::; lY'i6dte dfl5S break?
SEN10R !IDMIN1STRATION OffICIA!...
You';:"f1 S;;Y~(]9 the top.is $75-,000.
Q
saying
~he
~()P
';r.at· S yO",L' 'tt;Gs::iol1,
right?
Ycu'.';~
is $7'5,00C, what's the bottom of the middle closs and
how much goes to -:hos€: '::;e 10'... t.he bot tom?
SENiOR AotJ,fNIS'fRATlON OffICIl'~L:
Well, the E:ITC is it
program we've put in and that bLiSicdlly phases au:: "': al)oul $28,000.
All of, these will be avallable to people ·....ho a~·02 di)c,'e ;;r"l\. lev~l.
',I
(I
1"/0:1'
So tnat's your definiticc of
So !)aslcally YOU'L'0 sayic9 ::oeop:e
t. benet:t oec:n:se t:v::,y'
SEtHOR
.l\,DM[NlSTRA':'IC~!
Q
[or
'::0
already in t.hat
OFF'1CIA:':
w~o
is eligible?
~'1lo",
r,~gat..ivs
:::;::8,O~JO
--
They've got;: the EITC,
So everybody above the EI'!'C, the 5500 tax credit
kids under 121
Il will be available -
ill:y r:ilterec(:e in t~Hll;- is there any reason I'or t!,at nnd t:-'le
l;,-:;hird :'he income li:u\:s? I m<'!t:n, aren't they boer. basicoily
designed t.o deal with the ar..OU:lt. 0: money you feel you have
<.'h.1 LaDle?
:';SiHOR l\D!41NISTRATION OFfICIAL: Well, they basically tH'e aimed ..1:;
ilq,,~r., :.he ?r0:sid':flt. telt t.hat i'L was import.ant to <':bL"geL the ta~;
crecilts on t;lC: families that: reillly have the nlOst ;:CS,;$ "'l(;h r':t]ilr'cis
'--0 ~:~ds at ttH,:' levul.
He ceal1y want,~cI ,Q t,,;,12,'
,';i't,
,\:,~,
oi;v;ot.'i, y, it pt):'t. 01' Lh~ consid<rriltion 0f Lne '!8;;,:;,",~,;
,cO,
E:ND5: 50 P.M, EST
ill ;/20t)l
�THE WHITE HOUSE
U.:ccember 15,
BACKGROUND
•
1994
13R.IEt~:::tJG
BY
SENIOR
ADMINTSTRr~TION
OFrICTAl,
ON PRESIDENT'S SPEECH
?he
W,~st.
Wing
SE~~OR ADMINISTRATION OF~ICIAL:
The President is
bi'l'l':;:::t\]ly gc:rg ::0 do sc;me pJz:r' ta~king I"ith t!1e people of the
l)niLed Sti,tes th,s eve:unq.
iif!! bas~ca12y wan,,!> to talk about what
:j,:s ,;ou;,",t.1'Y is about ~nd it.s st,engt;;s. H~ <11$0 W<'lrn:s '...0 talk <1bollt
.;/,e <:1).,21<::;1)(:8$ th;Jt are confrontinq iI.;., tile !)rov:'clUs :;,;h'... a,': ;,<':;.)..'''J
pa;::lcu~ad'i wockinq families in the micd}"," elnss in this COUflt::-y.
lie a~sc w.;;n:s to indicate- who:': SLi';pS 11\' i~ ,;0ino LO
~·{~·O;:1I1.0:'.':
;'(" ';.'V
~o
deal wi:.h
:he c!:"obl-a::!:;J ;':1,),
:,-,r,-,'::0$
:~f>;'/.::":
;:,!',--'
'"o;,;uJd ~::<c ;'0 h'O"
"1;:':1',1.,"1..: : ... :";!,,,,;.;.,
';";
."".
',~,::::::1 :ione.
And :::hen, tast.ly, he's also 90in'} :,0 Lctl'" uoout s:;\:1PS
tmll: ::!lLizcns have to take in order to really have t.he N'teri.::a,. Dre~:n
CC,'I€ "'Liv·:; <':9Din for them,
He lived the l\merJcen Dream; he's go':'r.C;
to say toat to the P.merican people, ~nd he wants others to believe in
.i \.: .;;(pitl <:IS weI:,
.... '
., ,(I
'1'-'~'
ih,'
With reg<:lrd to the s!,eci Ecs, ::he ;:'.ai!l problems tha\:
(""':::',4 I.-!crking tamiiies right now iH'€ really V,t:e:e in te!'~flS 01
; inbr"lcioJ -- tOugh financial decisions: One, how to !lay for t.,e
~(iuCiJt~o') of YOJr ch:.lcJre;1, cwo, p.;;ying for l:fJisim,l .;; clnld, ;;n~:
three, s.?vi:1;J :'or basically i'l::st-home purchases
an~
Ti)t~ SI:'-'!pS :,r.ct rlr<:; beir~c :-ecolHr".,,>c(jed flce t,)~ followinq
S I.H)ing LO recommend -- there are tou~' teenS ;:'0 ~ne P~of..os,,-;
t:,dl I1Io"S j··~(:omrnG:ndi.ng 1.:0 try LO nelp workinq t\:~.eri::;dr.!:L
Cr,,~ L$ cn:,;,;
college ccit Lo;, wOJld be tax deductible, And h8' S gal ~g ;::0 refer to
;;he t';;CL lna:: since <l mortgage interest deduction is deductible
:)q';i~U$'? we .';,l;,L people to :) . .m ~O~8S,
we ought to make collecje t:.uitioH
deth'::;:lble b1~C-i<lJ5e we w~mt people to go to col Lege.
U:",,~,
::,~'
:;E:-::O;; ,~,:::ff,U~:STR;',T:ON on:-JCj;\L:
't;
lS "J)Lli: t:uition ~,or coJ le(,le, commu;'i t \
:}<!' lully (L?(:\:c::ii::~8 up to S:;),UOO" y~!>:,
rH'OpOS1~g
l!ichoot~
~:I
~:2a,I)riO
n
: t,
t;"
;
--
j~"
~0hr.
';'118 S(:l\':;OIW r(!!,;oITI[[,Qrrci.,tion is '-h0l 1'8 ,,::,[
1'.1!.dd:&~c!c.$S
'·"1'1.,' Ii" $
:ri<(J" ,;"
.d::'_';''.''~ ,lh".,ng
: ,'1
.'('. :"
~.')
.0
h,~j:'
::amill.GS ruise t:heir childr'en -
hup:!iw\\'w,pub, whitehouse
gDv/llri~rcs/12R'!Hrn;pdi ://om'LLx)p,gov.tls/1994; 12/ 15/ I ,Ie,\!. [
11I1!2(}OI
�Q
This
include vocational education?
doesn'~
SENIOR ADMHaSTAATTON OFF'IC1AL:
Vocational oducation and worker
o
~ege,
0n,du<J1.~
it does.
So it's college and vocational educaticn?
S8NI0R ADMHHSTRATION OfFICIAL:
col
Yes,
retr~inlng,
SGhOO~s,
proCessjon",l
a'!'! cclleqe, comrmnir:y
$,';1',001:8,
'/OL-',:~:,
WO~';;<clr
retraining.
7wo, micelle class [ami Lies faisin.,; cheir children, so he
:::e::.:es Lor eLlldc,;:: ur.der l3 -- in oU;,~r wO,~dn, ',2 ar;d
l;;')uer.
And CfI<Jl t<l.X crecit would be avai':'able to a:1y :amily whose
l'1GOlne is }';;S5 th,;l"l 575,000 -- isn't It:?
',1<'1) .. $
:"0
::~:~
Q
That's a tax credit?
S?;NIOR ADl41NISTRAT[ON OfFICIAL.
Q
P.,r.
Q
Up
That's a child tal:
~t:ilo?
to
SSOC?
SENIOR AD:.IINlSTRATIClN OFf'lClAL:
Per ciulct.
$500 per child tax credit tor f(lJl1ilies mwkt:1g
Q
$75,OOO?
Q
Or less,
SENIOR r,DJ'1INISTRATTON Or'FTCIAL:
Tiln'lc, 11G 'ltJD.in W';ln~s
to help mlddle-income families, so with reqard to saving money he
wants to cu~[!te savings incentives.
H€ wn'lts 0V(Jt'Y ;\I)){\:~.~Cllfl I:C r.:"!
able to put 52,000 a year tax-free in an iRA ft~l h0 abl~ \0 -withdraw that money tax free for educzl\:ioll, lll\~dic.:,~ e.'(])0n$(":5,
purchas~ of n first home.
Q
i,
.:,*~
Any medical, or just catilstrophl<.:?
SENTOR
of
AD~H!i
STiU\';' ::IN Ot'F'JClAL ~
t':rSL home and the care of nn elderly
Ci, tns ;:roph 1C.
Pdr~rL.
P,,","cnase
/\:Id th-en,
i'ou)"Lh1y -
Q
And thB:€ ! '
'.... ::.~:IOU:. pBnillty'f
SENIOR
$
"
cap 0:1 how
;;D:'ll~l:STRf.-,:'rO~!
cr,UC:l
CLn be
\.;i.:;Ii(;tr:~,';;
OfF1Cf/,L:
n;ch can b0 ',Ji::lo,cBwn?
o
1.s this ilva: lnble LO Gve.cyocny, or h:s;; :;0 ce:::;:£ii:l
,r ";C';"~ \jrol.lps?
SENIOR f,DMINISTR1,TlON Ofr:::;lA::'"
up to $70,000.
?tunilit.'$ cp
~o
S100,000;
ind~vidllals
i)"$:r;.;:~ ly
SENIOR ADHLNiS1'RArXON OFFICIAl.'
And ::our~h, he
WfH'l'.:S 1.Q CQnsc;id,:;':e <,J; of ;:h;:: diff<:\t'en:: t.tiI1~;:'!:\:, PCO~}ttln,S
eli",:"
ttle
~!'"inlr:9
w,~
b~(;ln
now hits ami provide", \louche:: ':0 iiup:ove joo
i; 'iomebooy lost;s their job or wonts ~1 b:;t:':~J" OHf;, $0 :;r:tlt
to c00s~lid"te treos!) pt'o:;roms llS pn:::;: ot H.
,:ove{nmen~
hnp:liwww ,pub, \\'hitchousc,gov/lHi-rcs!121~?Hm;pdi:lltllllH cop_gov Ilsi19 i)4/12/l5/l ,text I
1/11/2001
�Secretary Reich is recommending consolidation ot tne tral0ing
proqr.ams -- and tt'ying to provhi,; \H)\J(;bQt'$ directly (;0 'ulividuals
~~a:,
wa~t
job training.
The proposals themselves on tne tax cut; side ~~ we
';:he cost, a:1d you've got to be -- it's approxi::li'lt:e; i:::'5
2C;:)Ct $60 billion for flve years.
Five year cOSt. $600i1110". ,hey
t,r~ fully paid for in the packagG.
And I'll go OV(:t that, but. '~v(!r,/
-- V'Hre':,; noth:l'.g ilddet: to th .. deficit.
As a matter of fact, we
eC'...ua3.1'1 (3e:: some additionAl de:icit redL1Ction in the pt1Cktlge t!'lac:
wB're pres..;!n::Ln:.;,
es:.ima~e
The ';;,Ivings themselves teL the pny-qeGs COInG l~rOrn \.:wo
On(! is major restructurinq of government. ;l~,F~:ricie$ -- the
lol LONing ,ngenCies:
ELe:::gy, Ill::'::, LJepartHl2nt o( ·l't.'ifjl>po!'lalion, GSl\,
areas.
cnd l)?M.
prOCf:!ss -- these ace actually
n~sLn.lcturin'J process.
they'll be -- we're going to ask others to do t:he same,
Lh(~
This is the beginning of
f:;.rst l:ive in ilgel1cies lC
(j('
11
t.r,n:Hlgh this
Is this something that WQuld have happened anyway?
Q
Sf.:NIOR ADMINISTMTION OFFICIAL:
Most of ;:hese were --we
u>;kir:g :h'4::l to look ilt th'!ir operatior.s ':0 'J0qifl with.
S',Jt
bo~'icuslV'
~t ls something thae is piH't: of the REeO eCfon, ehe
:'~:SL::!cl.uril'H2 0': qove::nment effort:
it's b':dicclly c<::a:<jcc.:cd Dt
m;'~liI(:e:nent. ;6Sl..n;ctIJring, conso; idat:ion of progrn:;,s, priV0tiz:).;)9 of
SO:l!~ 0: ;:~G: prograrr,$ in the".; £!9>!:1cies. 55 o,.:'1't: <1$ <1:':nl:v':'!I:U s?an
''':0n~
ot'
t:,8
p!'Ot)l'iWIS
t:la:: L.lles.; 4gencies hilv>:!',
Fcr e:-:ilmp:e,
ir C;ter9Y, ;"e are >2ii:;:i;"",;;t::;.'
~lcme
,::0g::'21::IS.
':'r.e,{ d,e basically reducing t.he 1.1\'/"::"$ oi ma;';:j;J,?:>e~·.;
Lne'l'V'~ qat a cot 0:: rr,nr:2<jfu:non:.. tind supoev:islon layers ;;.h1!re,
I\nd
th~y'
re also goi:Jg to be privi'>t:izing
some or ;,he prognlffis nt Energy.
,!i.t HUD, you're looking at mainly consolidation of
p:oc)!'ams,
SecnHary Cisn"ros is reccnrw::,d_Lg SOme pretty dCtWdltic
consoliclaticn of programs so chat they'::e ::argeted Dt !'lousing ",nd
"cono:Hic: ci!n"~.'lopm'"nt:,
AO(l the sar'"e ;:11i:·,g _5 l:'~"e [0:" '.:r.'':;;H~ c:her
agenc:es,
So
th~t's
Q
How
SENIOR
one piece
o~
,~
expen~;i ve?
AOMItJIST~ATrON
OrFICI!\L;
That. piece saves .:.oou:
524 billion,
Til" second piece is to continue a hat'd {l'eeze in
$pcr'ding tllrod9h 2000. toJe currently IHlve a rwrd Creeze
::: P~"':::''; <.hrou~lh Fiscal Year. '9B as,pan: of the $500-billion deficit
;":<;'~'';;(~('l': :;;'o'lr{.:-o.
,,!,~ 'ho\;lo '.1>:t:.cnd
,1(1.,::'..(.::",. ·.·,~c, Y>;i.rs, wilien pic}:s \J0 55: 1);12]0:..
i,:"i 'icc'"J{,- ~!O,.
SO",\, ",c(li;,i(·jwi ~"lr:.r;Jl: t<:(lUCL1;)!' c:~ ~~CS' (:.;" ""
cis~rGt~Ofli!t"'/
NO>:,
",r•..,t
:.;~
r~~ ... :":E:S
;~<j\,/i'
;:I;d;::'?;;.,
l':~
the m(,.;c '::_,h,:
co ;:he un: ::;:u;;;s
,,',jl1 II;)!: jtnd,; idt
~\:w
.. hos'.?
Q
0"
0;10
h(.w:
:;:,~ ~ ~:j':'J
, " ' ....
';J<i!' ,'~ p.:.yi:, .
.! ;v:
r,' ,; . i,,' : .:: .~i',
~:,,= ;:,,!,: ~;tllS.
::vr ne,':i"l;o,w I';j;:h ;'''"':i,ltO ;0 :'r,··
::, ':,E; !l:.!.'::' :~;:dSo;.'t,
will be pl'>zsen;;.eu, oC',iously,
This is 576 blilion in savtnqs?
SENIOR ADMiNISTRATION OFFICIAL:
This is S7£ ;:nlliO::1 In
h:ti1:i!\\,WW .pllb,wh;h,:h!J~ISC,gOV!;ll'i-:l's/l2R'!Ufll:pdi :!JOllW.l'op.gm' .us!] ')')4/! 2; IS/ 1.le.\\. !
�Page 4 01'7
Q
And so the SGO billion will pay tor the tax cut -
SENIOH ADMIKISTRATION OFfICIAL:
That's coerce!;,
and $16 billion will pay for oeditiona! deficit
Q
redl1ctiol"l.
S2NTOR ADHINlST:tA'ttON 02FlCAL:
1;; ;,c;ps ,:$ ~r the
rieticic picture. we're going to ouv€- to do mon:! on the deficit:
pi :::::tun., and we're goi fig to be worki ng U;rougr, :::l:ose d:::cis,:,o:,:. r:ex:::
week.
'~,I',;;,
Q
NOw, is it fair to say if you didn't have any tax
yOCi would f;uvs !::cell ab1e to s,we $76 bill-lon in deficit
'''',,~;~
SEt-dOR A2t,lINISTftl\TION orF:CIAL:
T":a (\ ns-,.,.(t t
Q
\,0 qo "duo."
j", ','\:~,
if y<;;>u wer'u ::0 hove ::one ,;:i::'s -- ",'oulu you
hav(~
don'? this enyway?
SENIOR ADMINISTRATION OFF:::::IA:":
fJ
iiouid you
hav'~
?a:;"con r;,e"
dOne this anyway?
I mean,
the ::ax
cuts.
SENIOR ADMINISTRATION OfFICIAL:
No.
CIea=ly, we were
r;,l;)r i :HJ :'01: .':0)<;',' ceslrucroring in government pz..'o9nnlis,
,,'\nd tho
oddi;;ional freeze is somet.hing we were conslden.ng,
wI?
';,",n ',.Ie;:
Q
P·.re you \ioing:..o :~",'Je a~y <>,"~:f,. ~,;<; ; . : :5 :i1cl'
IOLO t',Q b;'cadcBSt 0: w])",l: Lno.:- f'<'es;"',<:,, i" s"'Y:1:9
SSNICR
'.'>Iorkinq on :.:ha::,
Q
Af);1I;~:$TRj\TIC:\
OFP::::;lA:',
[x.cerp~$.
l;'",' ;::!
Okay, because it's getting
Sl::lHOR ADMINIStRATION 02rICIAL:
know,
3£.NlOP' ADM1NiS'l'PJITION OFfICIAL:
'iie've got <l sllm.'nary of
tV!' it ftlmily, ,1 four-p~r.o:on ["lff:~ ~ 'r' '.1ith S~:i(1, (lOO of \·J(l(Jc
<>::d sid.,ry :nc:::::n!c.
Ana, ~V coll.ear.;u€ will wi;l.~k t.hrc~:qh :.:~~se
'~::,<-,~
.".."
" ..
•.
-~:'"',.:'.$
"
".,'
" , f'
[ou!"-pE;:~son
SS!HOR ADM11"IS7RAT::.JN 0?FIC:;;1.:
"'!1.;",'; ;Jr'1~ oJ:~":nples OJ
ta::'li 1 y, $50, COD 0:' '..:ase ar:d sa l.<l-ry i :lcome, S"I, 500 0 t
i::errdzed duO'Jct.ion find [o'-1r perso:1a: i?x-e:::pl:iof's
,,:"i~h
(,dd up \.:0
5:0,000.
Q
'fhilt' s current?
That's C;;l;ren::. c:'rcu~,stance ami
lIC>'''; '/OU'::O 90in9 to go :0 t:he scenario is what WOUld :JapP<l'J) to tiLl;:)
0>$ "
! esu) ,; (,f these proposals?
G~;Nl('~ ADMIN:STRATIOn OFFICIAL;
Con'eet,
:';:0 case one,
:;:u!are:), 12 oz- under, tha~ means they're going to '.let $1,000
"t",: .,~0'(1 ."
th-')-&;':C:) f;~'edi,-s -- ':hat'g a 21l-~~rceJl:'; n;:d'.1(.':·tofl,
))0'.:',
:<or~)
C:'uti1l,
Lh,J'/ ';et
but
,:;'1:
~h0y \]>1:':'
lti~'0:'
C\"~;
~ducal:'onal
',2.
so : :'-0\' ;~c:,'
in 2:-:~:1?::l$ 0;
B'x;:.-ef1se>:i
"
, '
,,, ",,
~;10,G()O,
so
;:he :',:ti :3lC,:)'JC dcc'LC',.. 1.0'L
hlll):1!w\\'w, plib. wh i !Ch()\lSI..~, govJuri ~ri.'s![ 2: R'!U1"I1: ret i :J/nma.l'op, go\', II sf I()\)4! 12/ 1511 .Iext.
1/11/2001
�rage.)
of if you can put your kid in private
sc~ool
or pu::: your kic.
SENIOR ADMINISTRATION OFF'TCIAL:
Q
But t:his is
childr~n
fl.,Omt~13THl"''I'rON
to::' college.
over 12 aren't
SENIOR AOMINiSTHAT[ON OfFICIAL:
SEN10I,
01 I
Of'FICIAL:
No.
rc
In
college.
This is Just -
)'Ol\' r0
1 S.
19-
o
J-J:': basica2.1y Cor people with younq l>;Cnclq~t'S
between 12 and 18 un!.ess t:H?y're i:') college, C1H~y don't ~lCt (lnyt.hing.
SENIOR AOMUHSTRATtON OfFIC1AL;
No.
Leok at case
three.
Tht:y can put money in Ln lEU:\', Chn .stlve for COll~g(? Or' for
tirst home or whatever-
il
S50,000 -- they can all do that on .a $50,000
income.
SSNtoR ADM1N1S'l'RATlON OFfICIAL:
r '~~h<: L~l:'1t t'l'" reu[;on
why people, why it's hard for them to save fDr the re-.::i::e::lent is
heGc;use :.:hey're usua!.l't' alt:eady s<lvjrq (0::, you ;';:-;01.«, ::_-y:f''J c:o SiPJe
tor college oc somt.,thi:-,g,
So this makes it e;..c.;,~r:i.iHJ:Y -e<lsier '::or a
fami~y wh.o \las tryjng to put away -- 1 mean, a Jot cf P'JGP]i~ ;~,akir~0
S~O.OOJ are trying to put- away some money fer thei:: ~;ids ed:lcacicn.
·:'h<'lt. ·.... ouJd help any o:t those families.
Q
A;'Ici then the ::eason we did children 12 and 0:\der as
opposeci ::0 16 <L,d l:;)del' 's becaUSE most of t;hat money, 'Iou figc:':€ .
needs
::0
go for child care?
SE:NIOR AOMHHSTRA'1'lON OF'FIC!AL:
::llf~
SE:r;OR A-OMINISTRl\TiOhl OF'FIcrAL:
cO'-!'ins 01' ki.d",; 0)1; flom..;,,_
Q
Let
~a
:';!H?Y can put int:o an IRE,.
flSK n q).;0:stlo:l.
l~er
On :::.,e [r:ire!
(:
l\r>I"OC!'- ":l:':h"
irl::i·.. l.::iua!s ilt 570,0007
y~l\.;
--
..,;60
~!lal
,;,;;) ;7),;,
you know,
~11':i:(;
--$2, UOO
Right.
child?
SE; .... IOR ADMINIST!{ATJON m'nCIAL:
(}
-- t.anJeted,
Right?
SE;NIOR ADMINlS'I'RATlON OFfICIAL:
Q
Yes.
:'(Hldiy ;.)(;0111'"
So this ;:hi::d t:tung
ov~r
No.
I~'s
just -- ....· e've
~";;:'.,;;,~Iri('
d:~,
hez--E!, when:! you're saying
~[NJOR ADMIN!STRATIOK CF'?IC!t'\L:
.it -couLd bf~ either
e:!1,,;h2r 11(1V(;! childr(;!:') or i1. could ce a [amil.y ·.. i-:,;h no children
Lhird ~xample.
SENTOR ADMINIS1'RA1'ION O?FJClf..L:
;';:"!(Jh-:: '101", ,,1!' f!<]'·" yf"lt:
';;,:,0001:11\ y"ur lm:omc 1:5 up :'C G'ln.f":I. :~:"J'>::H 'Jr';r
hnp-JIwww V~lh. whitchQusc,gnv/ufl-rCs!!2R?urn:pdi ;/10111;1 cop.gO\! d3l1 ~94! 12/ 15!! .t<.:;xL !
! /! !l20t)!
�$42, e)Qc, bul,:. you cart only us.,. i l fot' reLiremer:::,
YOll tiik,:;: l:; OUI:
before 59-112. you face a penalty, This does !:HO good t~!..r.gs for
n-,:'ddle-c':'ass L::ILli0S, One, instead of be:.r.g $40, oeD as the :imi::,
it raises it signif~cantly to almost SlOO,OOO, so it includes a lot
rrOre middl';,-~la$s famiLl.es. Secondly, it has a whole OUli?r category
besides retirement tt-.at you can toke it out penalty-free for.
But; tr.e ::"axi::;l,;ffi co;)tr:butio:'! is still $2,OOO?
Q
SEtHOR ADMINrSTR1..71C;,!
OFr:CIA~,:
Thnt' s
COt:r0Ct,
Q
WtHlt governmenl servic.es, on-: Q:- :"WO. ~'1 ;;:'12 :':0['
Olles t"H:'i,; t':n';:'~C{Jns enjoy are going to priviJtized? \I\'nii ... see viLeS tni~
people would ::eco<Jnize are on the pt"ivatjzation lis,-?
SENIOr. ADMHIlS'l'RATION OFFICIAL:
Well, let me give you
just one <;xiJ!l1ple w!',icr: ''''o!;ld he !:hat;, f'o~ example, the petrol~,l!n
reserve that currently is under the Energy uepan:ment' s c.:ontrol,
That's bcinq suggested for pdva':izinq.
o
p:
('}0l'~':'Y
:t
1 mean, what: would t:)at mear.?
wOl.::ld
j'.)$1.:
be
rr,,:m2ged?
SENIOR AD:-'lINlSTRA'l'lON OfFICIAL:
The gove:::"t)",ent could
still ~ave access ::0 tt':8 oil, but the -- it would bo'lsic.nlly be
operated in a private sector basis.
In othel:" words, che private
sect.or v,.'Qula iJasically mr.H~ag~ t;;c f.1.0':,:.
We woold stAll have the
ab:lity to get access and d~ii\.1 from i\:.
But right now we're running
th"'L whole ope ratio;) Ol:.t ~::"He,
o
L:L,
!:,~,0r:,,1
Nothing far-reachi:lg
'\"J~;<1t)1i::;'
li~e ~!r
j:~af(!"
.-,
we'
n~
1o.1o,;1ng aL
IV;! '.1<)[1:" to d:;:: is
tt:at ",be:'! we get
Q
OO;l' comerrow,
01'
~?~trol
501'\':';:12 u:'-
:
series 0: l!"10"e Y"t'oP:Js,-,:s, ,~~_)
h';;S:Cb;ly provide .;, more i[1-cq;,:,.r:
1:"1::0 the pz,t'ciculal' depar;::men;::s.
i.!
:.
--
,"
. ;,::,,: ,.>
,)[":,.,::!~,,q
,")1:
"
,I:.,,'
3,] .:::'
Is t.')is tomorrow we':ce talking ,lbo(Jt or -
S,:;t-JIOS. A0r':.il'llS?;.,A:-:ON OrnCIl'.l:
I <;hink SOIlIc.; of Lt wEl
A lot of it; will be over: c:he ',.,:eekend.
Q
Over
~he
weeke~d?
SElHOR AOMHllST?Ai'::ON OfFiCIAL:
w,; ....''''- to dQ b mnjo: l;r:eiio(] on illl
: 1,";,,\), ~n·,: -/;\,.'0 :or~::>:oe:1L'S b0Cl;
of til;! (1';;Fil;';;::;I'rl,,:,
~hE;:
:~'O:l,
;'\'"'':_'''
,:,:
,',f';
w,..
~
L
::,,)','$
,,$0
'C
b~ .. bie to provid\? .. tuller brietinq on the r'e3L!'~:4L':t~
Q
But would th.c.t 90 beyond monies neede:: to covet'
this $16 billion,
SENIOR AJr-::NTSTSATrO:I OfFICIAL:
r think i~'D ;n;:inly
lh.: L€tst.n:c:;'l,l::-il1tj \:he::-e plds so[;',e 0 .. ;:;,(: ,>(l~ii\:to;;al. S~ll::l'
:.h,)y wnn .. to do \vi::h regards to other depan:.:ne;H:S,
(Ir.. inq 1:0
I)"f
111112001
�Q
'.4hen was tr:e final pa::~age fjnalized, crcssin~ t:he
las •. t's 011d dotting the final l's, numbers for all oi Lhis?
SSt~lOR
ADt<lHI1STRI\TIOt.J
O~nC:AL:
Tnc cl"!cls;(i-ls by t.he
?resioenL were oasic.;llly concluded yestertiav
Q
Yescerday morning?
SENIOR ADMINISTUATION OFfICIAL:
Yes, On the tax pieces
a'"'ld t;.,c -w::ni.::3rs, o:::vlour,ly. '''''H:,e workod thr.'c1l1Jh t:0day.
Q
All the details en the 100,000 -
THE PRESS:
Thank yo',.),
CNDS:;,O P,Y.
CST
hllpJfwww.puh. \\'hitehousc.go\'h:ri~rcs/12R?t;m;pdl://oma.cop.go\' us/l !.N4/! 2/151 I.text. 1
111112001
�Page 1 of 10
.;
THE WHITE HOUSE
Office of the Press Secretary
ror Immediate Release
December 16,
1994
t'RE;SS fmIEflnC
l3Y
SECRCTr,RY
or
LABOR GOB REICH,
SSCRETAR'I or TREASURY LLOYD 8r-:!HS::i~,
SECRETARY OF [DUCATION P.IClll\RD El :.t::y,
AND CHIEF OF STAff LEON PANr:TTA
The BriGfing Room
11:18 A.M.
EST
MR. PANETTA: Thank you. The purpQs~ ot t:hls briefing
is to provide everyone with greal:eJ: details Oil the Pl'oposals that
w~re
(Jescribed by the President last night, particularly the tax and
pldllS that are part of the Middle Class Bill o~ R!ghts.
~;,,~rl!r\g
secretary Bentsen will discuss the Pt"esident' 5 tax
proposals, and Secretaries Reich and Riley vli.II describe the
t'r"..:sieJel1t's I:rilining and eou'cation initiatives.
QII MondD',', the VLce
1?:·,~sicl(3:llt wi_ll provide greater details on the drD!HDLic reforms :.:hDL
the PrC?siclent is proposing for m(1jor departments <md agencies, not
0;',] y t.hose that are being used for paying for the tax cuts, but the
b:"Cd(ier pr-oposals that will affect other agen::i,~s Mld depa!"::ae,"::s.
Last night the Presicient reall"/ '.J:ti ~~:"0-i':
ci:rec:tl',' ::0 A!Her-iea's wo[f;illq i';;,::,il"~es ,Jbet:;
""
",;~
,:
.. ,"'"
r.;~·:'Lr ht)r'~s ['or ~~~e future"
As 1(lallY ot" YOli i;I:<J\~, :';::"'; ,.",:,::; :'I.u.; ~:i.s
:5:"",,:..:h"
Thi,,, liiJS il speech that he! essentially elicL"U~(i in::.o .:; ::ape
::~::l::;ro!,-"
'''''I~ useD that to baslcally then prepare'" final speech,
~·: ...." ':ch ~lf2 then r"eworked for the address that he gave"
So this truly
WbS his speech, his words, and he very much wanted to cornrnunica~e his
convictions to the American people.
And he is deeply gratified by
th~--, react ion that h<ls corne into the White House as Cl resu 1t at :.~e
s[kech"
IJ
What. has .that been?
MR. PANETTA:
It's been very good,
been very :;000"
Pt"esident has sc.ici lher:-'~ j S 11Il~:_·' i;, rtJll'::: t;" ::~"":.
oividi:!s LIS; W'; lle,::rt 1:0 'or:-inCj t:h,; <":()1I11'~:",' to(!,,:Lhi?!" and
",",
,,'~':. :~'. ~:10 voices 01' Clllqer' cirown out: the nUGe! :'or' dit,logt:e
,:;:::;)[1,.1 ,ill people.
And he feels that, I think, very deeply.
'i':'8
'.::-,j
:,,~s
l:S
Lrla~~
'r~e President's Middle Class Bill of Rights is ta=;eted
;.he fU:lciamenlal needs and concerns 0:- :[I~dcilc--~nCC[[it: '.... o,,::rty
:~:;,~!ies.
We've said the biggest financial str~jn~ tllat fJce ~orkillg
:"il::lllll;S in tilis country is how do they pOly t:ot" th,~ 8rtllcOltion :or
':;'lii::in![I, how do they pay fOl" l"aisil1g theiL' c;hilcJl";rl, bUyi.:lg i'i ;"iI"81:
::n;He, :",,\/il1g :or :;:h(~ kind oC ca::olstrophic i l~~\;:::;~; :':~li"J;' ,:8n a; :""";::
'=";'~!"/ ;,lIn:ly
Those are i~h'.'.' ~"e,l! Ilt!\?ds 1,1,:inn '.-1Il! ':!~'~_1 :',l::'i :i,':-' . .,~\d
i;. '.... as :0 Lhose ;leecis th,,:: the !):"p.~i.r:en:: .I;l(::·'·R."",·:
' ...
~':'"'.-:,!~ds
1111 p:/ /w\\'w" pll h. \\' 11 t le11tHlse"guv/ II ri ·rcs!! 2 R 'fum: pdi:!10 Ill:l" C\)11 go\' .lIS! 1()t)4/ 12/ I (Ii 1 1 I" 1
c:\
1/11/20UI
�Page 2 of 10
The Presioe:<t r.as b<':A:r1 .Jby ng foc' ~Yr>2'" 'i~ar":", t.,n~ the
:..:ox :::ode is L:1£0i:: :0 ::-.idd':'c-':'r.corr.e Am<?tlcaf:$ and -~r-at t-Iey neede:: to
r.ave a !;ax eLt to h01;: tne1l rueA:t thltil:t rami-ties ne0(;8.
Tna f~rst
st_.:p ..Am;:, IDst year, as he pointed Qut, wlth t:,'0 ear:-,e:! income t<:.x
credlt foc 15 mllllon families_
That proposal was enacted as part of
the economic piEHL This proposal completes the fulfillment of the
promlse thot the ?resldent h2S made,
,h0:<f;,;' p::oposals a:r.e fully phic fot :~y l'i:::)t:c:nq
90'Jcr,'(l"er.t a::",,j cu:::Lng spend.:.r:g.
T;,,,"y'rc :..:arget€ t ci bt :nid:::le-~.r.cc:n'1:
WOiOiig ::,:;::.11i83, i),ld frack1y, t:l8 ;;:'2publica11s, in c(;n;:r<:ls::, haV3 yec.:
to s<JY how :'::1s:,r pro;:::::.sz.ls are P&lC for.
!301HG of :':;1e;~. "pptoaChlng
almost S300 b: ~lion in p:::-omis~s, Bnd they provlde ",;)onnou::; ,'inc
unn<!leeJed boti'::d'ltS to those i1t the upper-ircoifle lJn)(.h,tA,
as
.5,~id,
is Cull! p;:;i,; :·;)l· by ~;lv
::0 cejnve~L governm~~t OJ ma~j,c ~~ slilailer and
'(,l)J.V '~::(8Cl:V8.
'!'ie'v0 alccady redue,:.d fede!'a! elll,c:oJ"rr'~r't :..r: :.:l'e
goverr.wect oy 272,COJ, t'1e lo,.,-est ':'evel. 1:1 3C 'years,
Tn!'; LEi."; Cl,t,
~:~S,dQ;ll.·~
ofio~L
Tne s~eps :..'e are now ~aki:):.j make radical u:!Eocms !r,
Lhree dep,lctments and two agenCies, and that is Just the Jy~girm::n~l
Th,; ?u;sidcnc has dlrectGd the Vice President to £GVi2W the other
deoar-twellts dnd agencliO!$, 2S well as to find 3:,dit:0:1il] savings and
,~;'orms
W'? int?r:d ~o ;:::;r:tinue ::t:at etlon.: to ~ec':,.,:e L'l"~ del'];::.'t 2'lci
li!z:xe qcvern:r!l~flt s;nal:er uno ::;o£e ef£i:.:::e:1t
';'i~'~ sil-r:.r:ss "W: eJre L!s.i "1\1
to paJ" for t,G tilX cu:;s on:? spec: fie ard real.
As Y0;J
knO~I,
there ),5
S2~
;)illlCW
::'1"'.
so.,'Jinqs
::rO;';1
of Ellecgy, HousJ.n\) ..,;-.(1 U~-)~i:ln Developllienr:,
;,~:(: 'T:dll.y~'ort;i11;:ion,
.;IS well as the General SGr\':.;;,~~ ;:'_dl~linLs:':,,":::'011
0;"j ~))e Office or Pecsonnel f"lillli:lgement,
in d(:diL.i.:;;I'l. bV 8xtelll;ing
t:ne hat'C trec~ze on disc;:-c~ionary spe;:,d.:r"Si fot: t:'v" ",dci;.t;.ional yeat·s In
r",!'onlls
U~e
,1
tl'1
~!l0
n(~piH'l;:rn'.:n1;:s
s:J00-billiol'. deficit reduction poe
c:h0~ \~e <it')acted,
UI€ r e 140$
ve ye0tS, r't_s.cz:::'':'y hold' uJ
'95, '96, ':;7 nr.cl -93.
t'teeze on diSCretioniJry spendi:!) .10::
speJw:i;)y ttt :r;,:;: '93 levels :or '94,
W;;: i'lt:t;: estendlng thilt
~re0::0 01: di~iC:'eLionilry
sp8nding J:vl' 1 £,90 imd t;.e year LOOO, ThiH prod'Jc{:$, i.1l d-v:i ct
itself, $32 1)1 Ilion in saVl.ngs,
Wc will SP0C':"::~, ",> h": have ahwys
!lad [0 spO!cit'y whe"! it .;;omes to :ral ki:l(' 0:: r.i;;-O '_'::fO.,;e, '2:':aC::',' how
tnose $6Vj,Cg;l 'ttl! 1 bf; ",c!,ieved :r. the
L ,,;v ;,c,:~q:;:';_ :"'Q ::--:f~
'''":''XH!:''2S%.
!rJ~ "e r+d to do trot ::~G' :t,.st :'11;) ~0-','1', .{!; ;..~:! :;::.. :;f:at
'" ,'
l would ,'~'qe y?t;
I wc~ld C:Cg0
:>>1 '~,:: ~;ol(i \::1'=
l<'er.ubllcl;(1 p;o;opo;.l(ll"l \:0 ~h€ same kind Qr test C~,H \~'e ;"w.;; mGt in tht;':
proposnls thdt ~h0 Pcesident has presented.
A:'e Ch~v t~(get8d to the
Jlij:idle <":'I"ss': f,r:e t:ll€lJ" l.:flfg€ted to wocki:'1g fa:,~;,lie$ ~:> ~n.is ccull.:ry?
i,:,~ ~')';Y :ully "nc :-'o:;es::ly palcl [Ot so l<·,{,t L;'f: (Je:_:<..iL ,loes ,'.0:'
_~·:-':('+i,S0·~·
fJI1(kw,;;,.(;fll :e,,1:s W:, '...:ocked 0", thes€
,~~t.';l;' :;"10 'ie,_~s :s (0
:',,,,.11,;-';'.' .. ;:,,;. ;~.J'"i..>;,.
':J.~ vr;, ::Jot $7(,<") t<.. ll.:o:~ :':' t:;,_t;~'" t-,-Ccl:1::'::Cfl.
It.: _s ~sserti;d thul.. r:o:.hi~lg be Go:,e here ;';0 ::-C,i:ii::'€ t:w'~ d:~::ci;,;.
If ::;-"--.oy :lIe(;[ \.[;o;;e Lf;."!tS I U'i;;\;;!,oJe wltl he F,U.:;! ':r- '.-;Ot·k '~oqr;,:.·,':;r
we '",il, be ,,0}\1 :'0 ']53i3': the middle ciass ,,1)0 '.i:li:.l~ ~1-:0' '~";T~O;/,
flnu
;nov) rg fot-vard
: .. ,.'',-,1 1:'1:;,
~d(:.:es finO ~.i'~'l:'L'?;l>::::,
,,,':.,
t':p;,':':i ..
}--_i'':'~;,
·:::s ::5 ".,)..J f.JL::, coo ":\;llC::-.lC2:1 D~i.!am,
He feels h0 :'las :.!.~'0tJ t:18 ,".:'~LL':,,,:
Dr0"n, ;",,, ""iir:ts ;:0 ::lako 5~jre that C'::b3:'S bel_c'/2 i t h(:u·.r. !'8t:
theJ!1s,,"lv-8s aed fo:: :,:>.8:,£ chlldrcf'.,
1111/200;
�SECRETARY BENTSEN; Thank you very much, Good morning.
During the last two years one of my pri~ary objectives has been to
~upport the P:'esident in cutting that: deficlt, a:1d we have Cllt lt by
S87 :)111':"0:) over tt:ose two yeArs,
And we're no:: g::;.ing to spe:ld onG!
cent of t;,at; we're not g010g to let that be turn'~0 back.
! S3::'
tr.roug;" chos,,, ~O')(J sessions as 'w'~ made the to';:;h choices 23 to where
we' r"~ 00l:19 to Ill,'.;;", thos:! cuts, and 'A€ cannot 32': <i 3~tWBt.lor w!;,;,',:;
w.'~ c;,':;<2 j:; n:rn to ~orr",:;')il;(,: dii'it :2 r03Y 5cenill'ics,
lie 'FlW I.:lHit :r:
';'1;~1,
"(I,: W,:; $,)W" ,'3il,,:0VlO, "}'HH'C the de:'i:::it -- i f yoo cc,lld do
,.;\1;,,/ ""1;:1"; tn" L:',cre.nse in ;:,e deficit. ;'roffi t981 ~o 19::2 OliO th0
interest we fund on lhilt, we wOu':'c nave had a bi!l ..:!ced budget and in
.:..his coming fiscal year, would have a .$50 bl':licn surplus, !>.nd 1
insist that. \~e continue on thln:, and L!H:! President is strongly for
it,
l..eL tne say this, that in this pro;Josal we're If'01\ing we
set s;:>::cifi..:: L,) wt,ere those cu;::s at.·~ qoir:g to bG InaeJe,
As <1e look ill;
what wi!' r.0 s,:eing from som" of th~ others and som(.~ c,; :::h0 R<Jpui):ichn
pccpo5dls. SGHlS; 0·' tbose i:1Ct'8;;Si~ tho'lL (jeficll: i'Jrld 111CredSe It
5Ui)5t£ntlally.
The Prdsidort had ::);e righ:': priority two years il(]O wher.
he sl;.,;)rted with ~1 dGfic:t: redJc:.iofl. And ':::ec<:lUse we are ahel.ld of
schedule in out' pr09reS$ 00 t!lat, because we :'Hlve Deen able to
oOt..tnsize this government and are going '[0 cont::r.\le to do that, he is
now ClO'i>(iy to tul fi 11 his promise on a middle-income tax cut.
H(~ is
al$O ready l;.0 fu1.fill Lhe promise, the specific child tax credit, and
now let the t.axpayG.rs beoef:l.t from 'lIIhat we've been able to
accompliSh"
\~'~rtT..
~o
Lh,~
Unj~~,;;
S;'!lC2:'J
SE!I'3~~.
';;" ;~c'~_';';'<!:'
expilncteci II <;0 ~)()r·AorldnlJ 5:;:0;':582,
;:!,<1t; ",:ol,ld bH '~:ontribGteci tc S2,GOJ.
'"
',:.
.,,;.
" , ) : ; ~F~ '::,:1,""SeU ; h" ;';',{..l'~:;L
And 'He :.,·:e.u (",;:),e" t.ht:H]S
'.:,~I.'.;:'::~~ ."~!(,: Y"~"ot·s,
Yo..: lOOK a::' ;::"'e ?~es~cen:':'9 ::~t., ;'HCPO"i1!,
H: is
';:.;"; $:'r:li:iiJ," CO t.he one i:1 H.::.. 11 ::':-:<1t. r.aci t:-'~ BG::::S6P-Rot.h [P.l,
propos.;;.l in ;.l,
Lt passed both the House and :;.he 'senat.e 'Aith a
lII .. jorit.y suppo.rtinq it: -- bipartisan -- b"Jt it: was vetoed by
Pntsident :gu!.h.
01· take the tilX Credi tS for cilildn~n.
Vice President
Gore il:od J pJ'oDose:i such tbings in 1992, and Pr.:sident ;:bsh ve'.:oed
;.
:';csj,ieLt :::ll!l!;on p~·0~i5ed that ill ilis o:.:aIl!p',ign, MH1 \>!C hilVO no'A
i'1i\~;h:;;d :h,," point .r !'~sca: n~sponsilJ~'..it'! wl){U'''~ we ,.3n eta it "r,d ..,,*
C01i pflV
1'<';" :..t·
On ::he educet~o:1 p["c;:oos.c;~, ie:: me shaw yOll i! chan;,
Let.
me- ;;;:how you \:nE" cireg on families 3.r..sofar ;;IS ~dyin9 fer coll~(1a
\~til:":-.,.:"".O;l
:r; :980, if they NenT.. to a p1.!ollc ~oll~~]e, ~t WilS 11
pe,,;e;H... ()~ their income,
If ::oey ,""en;:; to a i:>rivilt.e coll€!I?e it was 26
l'~ ~'cen:.; .
1:~ 1992 ! t has !jow" up to 15 percent. in a publ ie collegu,
i!:1C 40 percent i.:: t0Qy'r<;; gOing LO a privilte coI10qe
They jllst
<..:iJ!"1. ::l:"P ,-La;:, middl'2-income folks,
And that'S what we're
:,~t}·.<~l'lq :or ii, asal.s:"i;l~ if] tilis e-ducational 9rO;)05d1, :;':lat yOll g:~':
C;:(',0~1!; ,L;(!'..l:::~~C:'"l lor .)xpC'!"lses, -'<::: much 0S :::ila!:,
in qQ~r:g ;;0
·~c
: 1",,11;-,
Imp;!Iw\V\\·
;)Ub.whilChOU$c.gOV!Ufi~!"cs!12R?llrn:Jldi :!!oma.cop,gov,ns / 19!)4!12/[ M;
.{ex!.l
1/11/2001
�care of middle-income families?
You've heard this, but I want to repeat it.
The one
thing we don't want to see done is what happened in 1981 with the
overly optimistic assumptions taking place that ended up in a bidding
war, a great big competition to see who could cut taxes the most and
not pay [or it -- the present of the Congress in '81.
We cannot and
Wu will not let that happen.
So this is where we're ta1kinq about having a
responsible program, a paid-for program, and not one penny of
increase in I:hat deficit.
We've learned that: lesson.
We've c;omc too
far in this budget deficit cutting to let the fI0.':L ("O:\():""(,SS turn uack
,1nd start cooking the books.
The President ~Iants to make things fair
without cook:cng ~hose books, and that's the way to do it..
I'd like to turn now to Secretary Reich, who is showing
Ilis great interest and his strong feeling about education and
tr"dning, and what's being done in this to take care of it.
SECRETARY REICH:
W,'!ll, thank you very much, Mr.
S':-':!.·0Li",r·y.
Let me just say that
the SecrE!tary has indicated two
~1:,iOI· areas of ~ontrasts l)etween the President's pLan and whae the
Republicans flave so tar put up.
That is, one, iisc~Ll responsibility
-- we're ealki:1q about how it's paid for; they i,ren'~.
!"\nd number
twO, who comes fit'st.
We're t"lking about wor::!.fI() r;,'·cpjr;: cD1n!:~(;
fiest.
5t..:t there is a third point of contrast.
I t has to do
with education and job training.
It has to do with the way in which
working people in this country can really get ahead.
There's a sp··eat
gap in this country right now, and it's a growing gap.
You all know
it:; eveeybodJl knows it now.
It's related to I~slllcation.
It's tL w:lqc
(PP ,I[I(J a benefit q<lp that is growing.
If you have good ecJucat.ion
ami 900d trai.ning, you're not guaranteed a good job, but you hLlve a
good shot at: ,1 good job.
rf you don't have adequate education and
ll"a:'ning, you're on a down'.-Jard escal.ator.
:~.:.s is why che
G(!"..!2o.tion :..he
centerpiece of his strategy as governor, took all a lot o~ special
in'~'.!r-2:;!:~.
l'h'.s is why ::his President, when he ,;,Irne :'0 office, made
'.-<l, •.:,,'vi'):-' w:"l(.i Job traini:lCj and human resource dp.ve!..op:nen'... the
C;f:l!1::crpiec(! of his campaiCjn; wanting to do iJ lot, couldn't do quite
~s :lluch as he wanl:ed because of that hllge debt that we inherited.
T!iis has been gOing on
?rcsider.:..,
'::o~·
15 years.
\"her:. he It.·as governor of jl.,rkansds,
HI<i,i8
Brother Ri.ley <lnd I and the ['resident Iwve accompl.ished
There has been a lot of bipartisan
"l:;+O~·
:o~" ec'..iciHion ilnci job lraining.
A lot of P-Jllericans don't
':'l'~".~ ·:h<:: . ~':''''I'::S we <1ccoonplisheci bec~J\]se it W<LS hi p,i~·~ i S,jil ;Jne! 1,'='':,,\]5e
:).:;'itt:'~<'r:.s:::p :::ioesf":'t ::."ke SL!C~ c1 good spec:..a~ol" S:.:)!:L.
But a .ot
~Ii"IS :]~lne,
<1n(: a lot ..... ~12. be eione.
0'
:Ol over the last two years.
L·2!;: :lI~ just ec1.eL·, i:: 1 may, to this ..;h",rt over her':!.
'J'hi s chart :"efers to clle CJe1p that 1 referred to
:lIOllient aqo -- the
'.:j·C·N~U: q",~ :- '.";"I,)es.
\'.'h8n people who hilve cOl!';!(l'.~ deq,·":'~s "nri
Ih~Of.JL\~ \oJilO hove less tha:1 hUjh school -- these ill·e mc~n over· 11,,:·e;
tll'~S'~ ,le,::; wornen oveL· her;::; -- you can see tiwt onr:! of the b.ig succ.;e:;.s
s:"oL·ies since 1979 iws been women who have colle<je ciegrees, bllt they
s::: Ll h(!ve a lot to c<ltch up lI,·ith regard to men·.
,I
The POillt is, though, that this gap is growing w~der nnd
O:l02 of the most important, most tt"ollblinq factors hehind
. i:{;: :,0) !C\~:;,~ GU:" c:" ::he J1Jnerica~ middle -=lass.
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�Page 5 of 10
important that we give every working American the tools with which to
prosper in this very different economy -- based on technology, based
on global trade.
And that's why a major part of the President's
proposals -- a major part -- is a deduction at up 1.0 5]0,000 a year
for families to get education and training and job training and
continuous training.
It's not just education for thc kid, tt:'" Gllnt:inuolis
upqcaciing.
I~ven if you don't have a child ,in college, you WcHit some
additional t:::-aining.
You want to take some time, get some additional
training.
You can do that on the job; up to S10,000 deduct.ion.
That's why the President emphasized the importance of taking the grab
baq of federal adult job-training programs we have now and basically
getting rid of them, turning them into skill grants that could be
given d i r·ect.l y to people so they can rna ke choi ces, informed choi ces,
wi th good in:ormation about the kind of skills they need, the kind of
training the'," need, when and where they Ileed iL.
Th<lt's why the IRA also per·mits cieductions fOL·
eciucation.
This is a major education and training initiative.
is not just a tax cut.
This is an investment in the future
prosperity of working Americans.
This
Now, contrast this with what the Republicans are talking
about.
The Republicans have not dictated -- not indicated with any
specificity I"hat they want to do to pay for all the tax cuts they are
talking abot:t:.
The few indications they've given -- and I'm quoting
:lOW -- f~w i:,dications -- they've not talked about how they'r~ going
to jJiry. but il coupl~ of things ttley IIav8 menl.ioned:
~hey want La cut
s:.udenL ~c'a.!~'; by $:1.5G billion.
Rietht now, be,;t,,:.'i':'" (~.' :.1,,::: stuci,?n;:
i~)iJrl PCO~!.::-a.JlI -- ,·iCJht IIOW,
it you' r"C: ,.!uillq ::0 .',. I ~';:"
Lye.:' :.(,
gettinq tcai.ning, you don't have to PiIY, you (j'~c. 1)"S:":~jl.L'i ';11';
inte:::esL l.::-ee loan during the time that you're i:1 5c.;:1001.
They want
LC 'J",l ~·.:.o -J~' thaL -- $9.56 billion they want to ~ii;':'2 ';l\~ay trow
student loans.
They want to cut job training by $7. 5G 8:11iol1 ove~' five
Now, who is in favor here of helping I-.'od:inq Arnericans qet
~llead?
And I'll tell you, education and training, this is the proof
of the pt.:ddi:lg.
Look at tllat premium that comes with education and
~rClining -- :10 guarantee you're going to ~let a qreat job, but if you
don't h.:n.'e t,dequiJtc cducati.on and trclinillq, YOl:'"·e ill trouble ill l:hLs
Lechnologic~l,
qlolJal economy.
years.
The Presicient is dedica~ed t(; cio~:~"" ';::'::...:~~.~:!.J ,:t.'cu:.
this, and so is the person I'm about to introdL:ce, ::Iy friend and
pan:ner, secretary Dick Riley.
SECRETARY RILEY:
Thank you,
Bob.
Sducation -- education is the futu.::e of :.:.!1is country.
Lhirl!-: all l'.mericans realize that.
I thin}: that w-: realize it ror
i,v('~·.;;qe AmeJ."iC<Ins,
[01' middle-income Amecicans; it reall.y is l;he
:'C1I::1ci:l~io:~ :(l~' ~heir 0.conomic security,
Ecillcalioll shoul.d be
;':!''',!·;.i~''j:~ . .
'':t:p~'ort: or ~2duCcltjon should be Ollt of t.!\0 P,ll·tislln
ISS'.:,", <,:~o ::~.t,t'S 'wildt we havl~ tt"ied to do 5::1·.:8 we' :--' b8'";[1 h':.;r~~.
propos,,] t,; l'~~si.{lenL (":,!.r: .. ~:.
:"r', ... ·, ,It,,:
;:!ore control and mon~ skLlls to erIc'lL'!.";" <"!I'~I!I :..,.
rl'2W, camp 1 e:,: 8conomy.
J t '.s t tiC'! ~:. h·" 'i· ·~t) :.,!,", 1.: 'I :'ea':~l
I':I'! P'III~r!Ca:1 Dream, as the Pr·esi.dent has said.
! t~l!:If: the
IhoJs1(1ent's message is clear, it's basic, it's conC)·et8, anci it is
Slll1pl',' chis -,- \.;Wt for average Americans, for ever'.,.: ~:id of "v~r'ilqe
:·:-!t::i
:..he,~· ....::;.j!c:ren
;I·l/:t ~ : <J:':'~ ,. :'.: S
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111112001
�Americans, they are entitled to the best education possible.
proposal says that in its entirety.
This
from the child tax credit, all of our emphasis on
families and parent involvement with children in terms of their
CduCilt.ion fo:- average Americans -- for middle-income Americans, this
tax credit. for people with small children will be a tremendous help
to them in terms of what they're able to do with t.heir children in
that r·egal·d.
The education tax credit is so cleElr; such dn incentive
and a help for middle-income Americans to be able \:0 aftard and to
justify tIle savings of their expense for college.
The IRA's was discussed -- expimded to clearly make it
again, savi.ngs for use of funds fOj" family
I'or fTlieJdle-c;lass Ameri.cans.
so .:Jttractive for.,
'~(:lJc,'ti.on
All of these programs -- all of them, are pro-education;
Lhey' t·,~ lnlpaJ~tant.
It i.s taking a major polLey,
L,l}: cut for m.iddle
Amet"lc""
<lnd having it cinve a very impart<1Il1. po~~.:;y:
sllqport of
qU<llity ·-=uucation, of advance in E=du':i:".icr. ilrld·'
:-;;:~~';!i ;·0:.
middle-income Americans.
I want to ask every parent in Americe":: LO sit down ilt the
kitchen tabl(~ this weekend, look through the President's proposal,
think about your future, think of the complexities of the times, and
think how you fit in and see exactly what it does to you as a family
of a working-class family in this great country.
I have a question for ~ny oC yo~.
Do you believe
of the elections last month had no; be~ll djfferent,
~;:iH th,~ r<:~S\llts of the election last month,
i.f L:co:: Democrats had
r'~gainGd or retained control of both Houses,
you \,'o'11.ci be here today
annoullcing t:ilis Iniddle class tax cut?
Q
II I:he
r~s\llts
St::CRCTARY RILEY:
1 thil1k we woulei b,; :·'",1"8 (InllOu[lCinC] a
strong edlJcation p~ogram and a middle class tBX c~:.
think all
Americans expressed themselves ill the election <H:c i".i::; the President
said, certainly it showed to him that a lot of tl10se stl:<lins, those
difficulties that he had been talking about and concerned about, that
they were, y.,s, even worse.
So I think it djd cause the President to
harle in on this issue.
5;"'Y::'.(1 :
!~~O(_lt"al:!,
:':;1'~:1I,
L;~l\;!
(J"
SECRETARY BENTSEN:
Let me furthe~ s~:~p!emen~ chat by
Pres:'dent has stat.ed over and O'l~r ::~\a: ~..-, :-:,J:j il ~O\~r-Y'2ar
ami ile \.. <·,5 goirH] to go ;;.hroug!l the»", :·;c::;::!..·.:::e:!:..!': ,1:ld :-ulfili
w,"! L:ouid afford til~m a;I:1 clS 1"1i! 11I<;(i.o: ';1'= ~:'~"':\~c:~ L:l ·\;:';::::11.1
~le
buoqe:.
!ll1liLt.;::ions.
Q
Why are none of these In-e'').:5 t,i:-:,~ci ,1;:: p"re:lts I.. ic:h
teenDge children who "ren't in college? It sort of SLOps lJe;:w8en 13
and when they go to college.
Do you not: feel tila;:: those faIl\ilies aL·e
sufi'e)-ing t:h,~ SDITIe kinds of difficulti.es makinq ends meet?
SECRETARY
BE~lTSEN:
I ' l l be vGry c.:1t1c1.ici '.1j l:h you:
hIe
we ,:ould arrorc!, and stay wil;hin our" i)ud(]':!t l.irllitaU.ons, .'mei
Si.=',· l.hilL r;;V01-Y cent: W<1S p<1ic! for.
T ·"auld not: :)8 S~<1:~d.Lny her.: i [ 1
:·... 011 I"IlII: h'~f~11 cOllvlnceei or" :.:hat.
rlill
Whilt
C .. n YOl: sc'·y' wr,~· :.:he p<lrt':'..::.:l,,:· ·:;~P':·~·::\(2!1(·S ;Hl(:
heinq Lilcge;.ed? f\nti "'It~t,~: <lr·,:' ".()lj '~:,., . j oln d ' f~ro;."t":'.
illl(1 aJ 1 tho;., safety regulation Lhat hi.l':'~ prO::<;;l·:;"~C: .I\~I')l·i.::<1IlS
(I
u(J,cnr..:i,~~
O~HI\
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�Page 7 or 10
through the years? Because they seem to be very targeted these days.
,J;re you going to let i t a 11 go down the drain?
SECR£7ARY REIC.H:
t,'iell. let ::'Ie reassure yOu, and let we
reassure evruy working ,""-,eried;':
v)e ar>;! not going to CC::1p::o:nise t;"e
$of~1..y or thn he!11th of working people.
We'r>;! gOlrlg to £igh:;,
If
I\f;publ iCDf)S WBnt: to t;,).;c away the prol.(1ctionn, they' re goin~ to hEv,:;
l; r\i1joc fight on their hands.
o
Secretary Bentsen, you say that the ?resid.,nt h,ld i:i
But the :-escructuriao cc;:ld :IE'J(: tab'..'r1 plHc<:
becore now, ::he e~:tensio:t 0: :;.t','"' hard irt':e:!., }:; dis'~·Le:.:ionary
spending could navo:'! b,~e-n put i:-"tO e::fec:.: before :10\<:'
1; ,:'>11 It;is is
so ',!ood, why die it.. r:ak(? yo') so ton') to com~ cF hlL?; U"'_is?
::>C!'-'/'~l':
prngra::ll,
SECR8TI\RY BENTSE-N:
lake us so long when
1,'lhy dO(lls i t
wt;'v'J b";i?n ,:,))lc to m<1~e an $87-1~.Lllion cut? \-.le'v('; made enor:llIOiJS
ptoqr0,SS, W0' vo go:: YCt! ~:o il situation Wh~!:0 you hf.lv'~ the smollest:
fHlmiJec of gOV0r'rmcnt employees <::IS relb~cd (;0 ~he overall empioym",nt
of the cou::1try that. '10li've had in about: 30 years.
I t is a
progress:on tha-: hilS been taj;;i;,g place, Dnc L tough or.e.
\'Je fought
that budget through and won it by one vote,
We had t.he GATT to take
car~ of, we had NAF'rA to take care of.
We have Si<en a creation of
iobs 0: over fh;e million.
1 think we've done prett.y good.
seCRETARY ,,[ICE:
;';11 ir01,':'
y.~:,r$,
\qt's :]e ":cin(!i~: ";:()(.l i:.
I'-"O'll " c:<?i::. c( 2:,:" u iJ !.i.on
\«>;nt
';:-:pi.fl~:eCl
1t I may
hc(~;
"::i0
debt
'1~:mi.nl$tr:<Jt:(}:1S
"I'
1'.2.\/'"3'
a ·,Jay t~liIt fie> hd;;..
ever e:<:?£lr.dec:: it.
;113:" ii::d OP~ :..hing.
There's
;'h,~ ;"_',:,\;(l:.:';l;lS, b\.'i?t ;;:
~G
::,~
,
r;is:.;t'Lt~O
..... ,_""
j";;:y
(, .;0 S·:>L 0;
'roday, 28 cents of every dollar that Americans pily ir~
pet'sonal income tax goes to paying the interest on t;he <lebt
.;lCCl,mul;,ted over the last two administrations.
We ;"ad no chance
We
hi'v.~ qOl.,. LO get our econQmic house in order as a first. pdot'ity.
Q
50;:,e eco:lo:nists ."HIVQ suggest>:~a: c~al. a :,a:.: eet Ar.:
Dati :0:- ;:.""e economy,
T:'ey "aise :ea1'5 c.hat 1:..
b,~
:;'£3 pc:r,c would
c;ou;~i 0V!~"Y:'~h'-
I;n€
t';:;O!1Cl1j,
p~'onpt
!:'i,ise inrlfltio:l,
;',','_"2:;,
;.:;:;;e:· eco~12l"1i5'-S say r.:ho Li<"
:..,:,,,: cur.: 1.'1 6(> ::m:illl, l::' won", hi,'.": any -;;l:,2'<:'::'
or 1.h¢ ochDr,
:'!hi'C.'S your take on t,.his, Hir?
:nc~-{~;;:;a
;::::e '"·:;d
~O
's S0 "I:::a!L
:>, '"""; ,"I: ,'.:V,: ":1,
hr~af':
:.!':G
""1
seCRETARY BENTSSN:
Ny LaY,., on ie is if ...: e didn't pay
for thls. those econo:7!ists th".t $$y that you ...·ould ta).;e i:; ;:,w(ly fro/f,
the people by an increase of i:)tel:'est rates are absoluteLy right
A,r.o that '5 why we foug;)C So hard \:0 seD: that it ','las pilid [Qr to ~he
p~:)ny.
accorn?,~
,I\"d that has beer:
~Jow,
l'llde~~
the
or.:h~r
.tshed,
propo<;al,
:H1;
n.d lvi, i;.: .-Jill ,1dcl to thell: 'I(~t:icit,
. :;(,:.,.: ';"·'!i~,..':\:L.sU;l ,jt-e -:;O!"'.::::<:!l":led (1bou"
some O.L those thelt ar:~
They will clo jU,C3l: wl\llt:
..
,
wi.."·;, :;':-:::'$ ~5 ::..:!t", r,::,<jS~C 1:" " ~t,;;;':':·:; :\"-.. :.
11,,'1,;., ye",r,
t!\.,;' ',Ie:!';:\: qoin>] ::'0 ~;':":e <;.:;2ffi a 20-pen:;:lll :,;;:;;;': .;'1 :.:;~:t: :llcom2 til:';,
«nl.) Lry LO SDY tbtlt is ;lOt: s'gni:"icDllt?
i TIms:.. Si-.', :":li:t ; ;';;'Hi.. ::0
cowpl iW0flt those peop!e that are mr:i:1nq so muC:l mo::-=}, Lh~y don't
: ... .::
:.h1.o>: tVS
~j9n.ifiCant,
Bu-: you tiJlk to !'>o;r1?One ahout d S10(10
(.;\11:.,
,)/W :;;",t is HH,Hlilir:<;fcl.
: Ii·",'
i)\:(:,)e~
i,!
I",,;,
:5
1:1
O~'d"r
:..hc;~
::'0 l;ny for
r'_ot correct?
t:)~s.
j.O:: '.·;ill h;'II<:; to .:::,arv·:;
111112001
�SECRETARY BENTSEN:
Q
No,
we will not.
No,
no.
But you're using discretionary spending
SECRETARY BENTSEN:
And we're goir~g /0 do it (~ach y<:ar.
Sallie people llave had the idea that this is done avec <.l iiv8-yeilc
p~t'.iod,
and finally we get the totals.
We do it each and eveey ye(1r.
Q
But the current budget law
permits you to use
discretionary savings for tax cuts.
Do you not have to take them out
of entitlements under current law?
SECRETARY BENTSEN:
No.
We will go to the specifics of
it, dnd the Vice President will get into those specifics on Monday.
f:l: .... ·... 8 ::o!lol/ed the budget laws and we pay for it each and every
Q
Secr'et~ry Bentsen, capital qdins (Jitl no~ ~lak8 the
CUI. last Iliqht.
Does I:htlt m'.'an tilt: admini;>\;r",.jo:! w·"uld IIJ!'.' (.IIJI:
<lccepling some capitOll gains cut that mig);: ue p"o;s.;:cj :>'/ ~·IH.:
Repllbl iCiln-co~ trolled C?ngress?
SECRETARY BENTSEN:
We do not have it in our proposal.
You'd have to see how it was structured, I think.
It would have to
obviously be something that predominantly helped middle income, and
W8 have not seen that kind of proposal out of them.
o
Mr. Secretary, the President said last Ilight he
'!ltd ~:~nqeG d:e Congress to pass this program wi thout new cutS LI1
:;r,,;i'L: ,'·:,';(:IH·j.t:y or Medic':H'e entil.lements, but Lilel-e were saine cuts in
'93 ~h,",L are, 1 think, supposed to sunset ill.-ound 1998 at· sometllinq
like that.
'Ilould he ru.Le out continuing in force previously made
CULS -- woulc\ he count those as new cuts, or wo~ld those be old cuts
made new agai.n?
SECRETARY BENTSEN:
rlell, I think we'11 get into the
speci fics of that.
You're talking about a continuation of some of
those, and you have quite a number of them.
Let me give you an
e~:a1T\ple.
You've got -- like R&E, for example, those types of things
-- t.hose decisions we're making, but not: ready to comment on at this
:: i I~':! .
(:
.,:';>:1"
':'0t:
,:~,:i:1q
:'i":'~~:,u(:;r:g
:~,
:·:.-O'cre:.i11'Y R8ir-~, would yo!.: ::,O!~k il~)Qut 1.'le l\1,As, 'lnci
S(JIlle I.rick that th<:' Repl:t::j'>::1 "ontrClct does in
t~lerel'o:'e pushiny the r;O:5~ Ol,~ :ii-:!y.;~ld ')~': five: y.:ars?
trH~
SEeP-STARY BENTSEN:
I'/'~' re 001::.J ~J;.,:'
~, ..:":, ,,: ': 1m,. (luil)':!.
'l'Ol: 5~F., :.:ney':-e backloaciinq it anCi insis~in'J I;. tv-,s :~,J i){~ (jone thill:.
·o'Iuy.
'.-!02'r-<;! aoing 'o'Ihere you can take a dec"..lctiol' 0:: ;.~I8' :ro;11.: ·:tId, oJ:
you can put. your money in without: a deductioil and take it out ta;~
(reQ as you take it out.
We give people the option -- one or the
othe~.
Th~y do not do that.
Q
~!~0
WOlllcJ you be willing to
gi.V(~
an e,;l:illlate or wltat
::89 wi!: i)8 for the next five years?
:;C;CRETARY BENTSEN:
Oil, yes.
~L ::~;lS POiIIL,
rIo --I:h<1t's
PresieenL is getting into those :let~i!s.
Aut we
hClve -;::;,It estimate and :'igt.:red
Vlc~
1.1
t:·'li:,'.ny
cho:1r'9'.?~
Could you tell us d li .. tle ill .. "bOUL '.he job
in tile VO\lCller syst'~l1I"?
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S£CRETAfi'i RErCH:
Yes, Wieh regard to job tniining, our
proposal is :'0 take all the adult job training prograr..$ and
essentially get rid of them and substitute instead d school grant, so
t~at individuals -- just like the Pell gr~nts, ~odeled very Glosely
after the very successful Pell grant progra:n -- 50 ~ndividuals who
have lost th'?ir job, individuals wl'.o are disadvnntaged, individuals
who cannot take adv;:mtage of t~e tax doduct 'lQilS bec<11~se they don't
i);,'j,~
f,;i'~qd<lVc'
n,)cd,
~n:;nme, cnn qe:. t~10 r.nj~!;i'19 {1,,(1 d,,~ "'d,hJ1\::on i:.f"oy
wh·?n they nc,!d it.
They COD 0:,:":tcjn<~ ,;()w",:!;1",!' -:.h"~ '".~.
,.. ~ also iI~<: gOinG t::: '3 j ';e L:J'),11 q~',(! ~:'.: ,;I:.i,:':::-::l ~- :1~:'~
stop shopping -- gOOd information about wherGl "he jOl)S ar"}, wlwt ;:;:,-8
jobs a!"e. what training is required, and require that eV(l:::::y
institut.ion that provides job training puts into this ciatil bank
:r.formation about their success at job placement, so individuals can
make i:lformed choices.
Q
WilY Clln' t you give us the cos:: e.s:::.ima:.:c, Sccr0tilry
llentsen, of the II{/>. p.togr<Jrn now , ar.d whot :'1..: would be [eJ Iy pl1i1se;::
:'t~?
rlny arerl't the Armn'ican peopie encitleu tc t~ose --uf1ce.::st:2.nc.lnt]
what those costs are?
SECRETARY B£N'I'SEl1:
rlell, t:ley' r~ Goi~q :.n ~li1V~ t.ha;,:,
M)(J Lhot '.-Jill i),~ stated.
I said thal c<.Jdier. ,\0<: "1'.']", '.~·:lj 1.;.;; <;r\
MOflti,1Y -- on Monoay as we 90 im:.o rhe c.6l¢i.ls (t; WIll;,:,,; :,r,,~ $ .... \·i:;95
are and what r:he costs are,
W'O
SF..CRETl'.RY 8E~:'rSEN:
Of coucse,
knew
1:,to eilC:) 0: :;hese, or 1 WOUldn't be Up no.::;:
h'~~l:
L~l
'ne ':ell
s';ppo~'cr9
/01,;.,
:::,.:s.
Q
,,;ha:: about long-term d,:;ficit n~,jLc:i<)"l. Sil'? W."ia;;,
cd)o.::, 10;9-::e::n dBLic:t Leductlon:
Your own projGccion-s $:1'0'" :,;he
~1'-';':;:-::" :::1:::i::9 'Jp as the decade progresses:.
~:f; 'hi"; ?,e:$'.dent ,n,i.~l
<;o;:~'r.:;.:t·1d LO se:::::ng rid of the deficit enlln;;y, ".:~ \411J ",e (t\"~::
;,;.~'" <1 fMd:',qa : cow. him to 'l~'. ::-~d of the de{ir::: ",::,;;,!I!,
SECRETARY BtNTS:t:N:
A$ 1.1e progress,
yo';,'!!
:>~'<i!
L'I..l~":ner
things do~e, One of those thintj$ wid "';;e obv:,o"'$~y in :leD.lth c.nrG!
costs -- in hedlt;h care cos~ c:;:ncai,L'Tl0!1t, a."Io YOu 11 see ,1(J,Htion,11
;;avlllgs cominq about.
T\I;d yO"';<'c 90ir.9 to SB'Z $on,e CCdllC:::':lon oC the
deficit in addi:::ion to w;;a:; we've d~nc, Dr:d tf11king about eduC2tional
1~nhaf1cement, and talking abo".Jt :;,e :RA, M':d talkil19 (lbOlit th¢ cnild
cr0dit; additional mO:1ey a-oove ::~le S:50-some billion that we'r<1
talking about on the cap on discretionary spel~ding, and additional on
re::.r,v0flting gover:1ment.
~;EC?£TAR\" REICH:
May I JUSt say ODe <:~.'n9? 'tlhen ';".he
A:lI".\:' i-.::nn peoplr1 .H<? .,s:':cd ';.0 compilre Wh<JL Lhe RefYJhl' :,:;:,ns ;;0:1\'1 '-If)
'.... :;:;- :"0 ·.... nilt ::~:s P:,es:c<:?n:: .'i!5 ilrmOL1nt.:~;d a'tcJ '11;,1','
.~ :.'t '"~.:';j~~<f0 :0
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il:;:dns,
('oing to "ct.U(ll]y pay
who
is
put:~ing
abolJ'.: givinq peop1.2 '.:ile
~:H. .s·'j ,;;::;; i~l~l ~h"'.$a
pCOPJ'~ :'_~'s~: ,pHi ___ h'B';~,
1:01
workin~J
~(j·jcJt;io"
a:.ci
'~~·t::"'in:;;,
>tho
nod ;):e
get ahead.
What. happe-:le~ to pc.ttinr,: poE'~ >::'$ _~'''n~::'' W,~' n~
30 minu>;.es here a:-gui;1g t:boul Wil," ' " h'rOD<,: Hi:..h :";',t,
<Inc Secre<:ilry Reid"", you just talked about wno car.,.s
::n<ll: putt.in(] polit:ics ahead Ot economic"'> in \:,:-:i5 '::.,5<=?
Q
:nc:;"
l~sl:
ls!\'~,
S&'CRf;',ARY r..i::;C;;:
(H1::':::;~''::('
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r.'on:i.ng f:(;o!)J..: in .I\.;;'e:jcon ::';1'10
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It: 1120(J I
�••
Page 10 of 10
thew :JOod JOGS,
harde!:'.
;;1,.1'::;
we rave to keep figtninq,
ULe m<2SAagB of :"'lis election WbS th,,;t
and
il
:',iJjh::i.n?
1l0L enot,gll -
~ee;c
l~,
PQople ",rEO hut'tin<; out :.re::-e, ?eople wo.n~ mo.ce, ::hey deserve moe€'.
W2're going to raisG wages, \F;e 'Ole€' no;: g0-1::19 :::0 stop fighti
until
working people have a better position in I'JtH?ric<l an:; thei::
:c't:Gnes
are bet:e:' in America.
T;'ar.k yotL
EN::O:52 A.M. SST
!lI 112()Ol
�-
-.j
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�.'
THE: WHITE: HOUSE
•
WASHINGTON
Febru~
MEMORANDUM TO
26, 1995
LEON PANETIA, HAROlD ICKES, ERSKINE BOWLES,
GEORGE STEPHANOPOULOS, MARCIA HALE, ALEXIS
HERMAN, BILLY WEBSTER, MARK GEARAN, DOUG
SOSNICK, KITTY H!GGINS
FROM:
Gene Sperling
SUBJECT:
SAVB 1 MILLION SUMMER lOBS DAY
PROPOSAL: I would like to recommend a Presidential event as soon as possible on Ihe
Republican proposal to eliminate summer jobs program for tbe summer of 1995 and the
summer of 1996. Ovor 615,00 jobs would be 1001 each summer, meaning a total loss of 1.2
million summer job opportunities. The event I am proposing would be a day of mayoral
press conferences with a Presidential conference call to several mayors and business leaders
in. differenr cities.
•
RATIONALE: There arc five main reasons wby I lhink this is • particularly good hit.
1. Clarity on Anll-Youth Cuts: Republicans will be seeking to blur their war on
children by spealdng about administrative savings through block grants and places
whe..e they will claiming to be only slowing the rate of growth when tbey are in faa
cutting benefits for children. Since tbe summer jobs cut is a stark cut -- even an
elimination -- it will belp 10 fortify our arguments in the other areas that there are
real cuts going on.
2, How is 1 million Fewer Jobs Part of. Republlean Pro-Work and
Responsibility Message?: Republicans will want to establish that they are tbe most
pro-work party, yet bere they will be showing that a romplet. disregard to a program
that gives people nothing ....pt work. Average Americans and experts will both frod
giving young people work over idleness as a good response to crime and welfare. The
suggestion Ihat Republicans are proposing having 615,000 young people each summer
go from work to idleness will not be well-received nor seen as pro-work. Also, Ibis
win show Democrats standing up for private sectOr jobs -- not another government
servi= program.
•
3. Nallonal and Regional Hi!: With a major effort for a "Save 1 million Summer
Jobs Day," we can make this a national story while also generating numerous regional
and local Slories. While the cities we may get to join may not be where the key
Republican appropriators are at (though targeting them would be good), that should
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,
not be our sale or even primary purpose in doing such an eve.t. Rather this should be
see. as a strong opportunity to use trus issue to define the differences between the tWo
parties. DOL has already don•• state-by-state and even city by city analysis of
where tbe lost summer jobs would be.
4. Heavy Staff Un, But Low Presidential nme: Orgatrizlng tbis may take
considerable work from Marcia's shop and oth""', but the President could still do this
from here if he went for the conference call hook-up strategy.
5. Good Business-Administration ElTort: There will clearly be patlicipating
businesses that will be upset by this cut, and would be able to join with tbe local
mayors in protesting this rescission.
This is a good hit. Good policy, good politics. Let's do it.
•
•
2
�THE WHITE HOUSE
WASHINGTON
June 12, 1995
MEMORANDUM FOR CAROL RASCO '
AUCE R1VUN
LAURA TYSON
~
FROM:
PAUL DIMOND
SUBJECT:
0,1. BILL FOR AMERICA'S WORKERS
cc:
GENE SPERUNG; KEN APFEL; JEREMY BENAMI
This memo summarizes (I) the main principles of the President's proposal; (2) Ihe current
status of House and Senate action on these main principles; and (3) possible approaches to
overcoming the roadblocks to enacting these principles in this Congress. To date, following
regular consultation with Ken Apfel and me, the Departments and Secretaries have carried the
Administration's case on the HilL Mark-up of a very problematic draft bill is scheduled for
as early as Wednesday in the Senate Labor Committee. As set forth below in I1IB, your
assistance (or thai of the Chief of Siaft) with at least Senator Kennedy may be required
within the next two days. I also recommend that Leon. Panetta and Pat Griffin be briefed and
that the President be infonned as fully as you determine appropriate, Ken and r have
scheduled a 5:30 p.m. meeting today with the Depanments. As ( receive more information, [
will keep YOli apprised.
I. G.I. Bill ror America's Workers: The main principles (hereafter "GJ. Bill Principles") of
the G. 1 am for America's Workers include:
•
•
•
two design goals -- (1) for Adults a market-driven system of education t training, and
employment that puts resources and good inforruation directly into the hands of
individuals so they can make their own choices (With individual Skill Grants. One
Stop Career Centers, and better information on the labor and lraining markets);
(2) for Youth, School-to-Work.
consolidation and state flexibility
a collaborative state design proccs..~, led by each Governor, that includes a place at the
table for the major stakeholders (the private sectorl education interests labor and the
employment service. local officials and community-based organization)
j
Sioce the f.1I 1994 elections, these G.L Bill Principles have been an integral part of the
President's sustained strategy (1) to make the case for education and (2) to challenge the
RcpubHcans' proposed cuts in education as the wrong way to balance the budget.
II. Current Status of Congressional Action.
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·
A. House. The House Education and Ec:<Inomic Opportunity Committee, by a bi
partisan 29-5 vote, included !be G.!. Bill Principles in a CARERS Act. Cbair Goodling,
Sub-Committee Cbair McKeon and Rep. Rigg, and Ranking Sub-Committee MInority
Member Williams and Ranking Majority Member Gunderson were champions. We continue
to work with Republicans and Democrats on the CornmWee to sbengthen the School-to
Work provisions in order to continue rather than terminate the system-building seed capital
grants to statcs. The Administration and tbe Democratic leadership on the Committee agreed
to disagree with the Republicans on the authorized level of funding and to wage the war on
the amount of funding in Appropriations and Budget Reconciliation.
The Careers Act passed in the Committee despite: the opposition (and an alternative
proposal for unrestricted block grants) from Representative Zellff. TIlere is still some risk
that the House Leadership and Freshman Republicans will seek to overturn the Careers Act
Bill on tha floor In favor of the Zeliff proposal. The NGA '(ineluding the Democratie
Governors) expressed strong opposition to the Sub-Committee draft of the Careers Act; and
several of the Republican GovemOTS continue to lobby in support of the Zeliff approach .. A
vote On the House Floor is likely af.er July 4.
B. Senate. TIle Senate Labor Committee is scheduled to mark-up the Workforce
Development Bill as early as Wednesday June 14. The Chair of the Committee, Senator
Kassebaum, has dnlfted a bili that undercuts several of the G.1. Bill Principles. First~ the
provisions for building a market-driven system of education, training and job search for
adults are weak, and Skill Grants are optional. Second, Sehool-to-Work activities are
basically made optional, with no provision for STW system-building seed capital grants,
while 25% of the Block Grant goes to fund traditional vocational education actjvity. Third.
local officials, community-based organizations, tbe private sector, and labor and employment
service interests are basically placed at the mercy of eacb governor in the design of each
state's state workforce plan.
The NGA has written a hi-partisan letter generally supporting the Workforce
Development draft, but suggesting that more prominence be given to School-to-Work and to
Skill Grants. To date, there is no Democratic or Republican Champion for the G.!. Bill
PrinCiples on the Committee. [In addition, Senator Kassebaum's draft includes a proposal to
create an indc:pcndent. federal Workforce Development Corporation to administer the
proposed block grant to lhe States. This proposal for tbe crealion of a new independent
agency inevitably raises tbe separate issue of the extent of ehe joint administration or merger
of the federal education and training functions or the Departments of Labor and Education.]
III. Possible Approaches to Overcoming Congressional Roadblocks.
A. House, The Departments continue to work quieti y to strengthen the School-to
Work provisions and to support the CAREERS ACT. The Administration has avoided public
praise for the bi-partisan work .hus far, lost the Republican Leadership move to support the
Zellff proposal in order to deny the President .he oppot1unity to claim victory here. l.eaders
of the business community, some Republican think tanks. a few market-oriented Republican
Mayors. and community colleges continue to support Goodling and McKeon with the
�,
Republican leadership, while Ihe Presidenl has personally lhanked Ranking Member Williams
for his continuing work to support the G.I. Bill Principles,
We have also met with the staffs of the Democratic Governors to tone down their
opposition 10 the Careers Act, alleast with respeet to School-to-Work and Skill Grants.
Republican GOVerno", Thompson and Engler continue to press for State Block Granls with
unrestricted discretion vested in the Governors, As of this writing, it appearS that Republican
Leadership is not willing to overturn Ihe work of Chairman Goodling, Sub-Committee Chair
McKeon, and Representatives GundelliOn and Rigg, IN,S,: A year ago Speaker Gingrich
publicly supporting a market-driven approach for adults, including vouchers., in it debate with
Secretary Reich. The Speaker's policy advisers continue to recommend this approach to him.
Although thete may be risks, it may be worth exploring whether the Speaker would publicly
or privately signal support of Skill Grant' for Adults in the CAREERS Act as a real sign of
bi-partisan House support for the President's leadership here.]
B. Senate, Senator Kennedy is the initial key here: if he can hold the Democrats in
line, Senator Kassebuam will be reluctant to proceed in the Committee on a straight party Hne
vote. Senator Kennedy was a co-sponsor of Daschle-Brcaux 5.6, which included individual
Skill Grants. To date, however, Senator Kennedy has not actively engaged Senator
Kassebaum on the drafting of her Workforce Development Bill because of his leadership on
other matters, including defending education against budget curs. Senator Kennedy now
needs to be asked to serve as the President's champion for the G.L Bilt Principles as an
integral part of the Presidentls defense of education in the federal budget. If Senator Kennedy
agrees to do !lO, it wiU provide leverage for his staff (working in doser cooperation with us)
to negotiate substantial improvements in the Workforce Development Bill. Secretary Reich
spoke directl)' with Senator Kennedy about this Saturday, and they will meet Monday evening
to discuss in greater detail. ISenators PeU, Simon and Dodd have expressed differing
reservations about SkiH Grants. With Senator Kennedy and his staff. we need to detenninc a
strategy to hold them in line, and to assure the support of other Democratic members.]
The second key is' peeling off Republican Senators to support particular G.!. Bill
Principles. Senator Ieffords (along with Appropriations Chair Hatfield) are likely champions
of School-to",Work for youth, Senatorn Coates, Jeffords, Gregg, andlor Frist are possible
supporters of a more market-driven approach to put Skill Grants directly in the hands of
adults. Sub-Committee Chair McKeon, a few members of the business community. a few of
the mayors, and community colleges will be calling on them for support. Depending on lhe
results of tb~~ discussions. it is possible that they may work privately with Senator
Kassebuam or Senator Kennedy to improve the Workforce Development BilL
Finally, depending on the results of the first two efforts. the President may have some
ability to influence the outcome in the Senate (1) by carefully defining the principles he ·will
require to be includcd in any workforce development legislation and (2) by carefully
coordinating this strategy with the Senate Democratjc Leadership (and Senator Kennedy),
Given the political sensitivity in the Housc, implementing such a strategy could be delayed so
that it f.9I1oW:i the vote on the CAREERS Act on the House Floor.
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,
January 22, 1996
,
MEMORANDUM FOR THE PRESIDENT
FROM;
Alice M. Rivlin
Laura D'Andrea Tyson
. SUBJECT;
Education Tax Proposals
You proposed college tuition tax relief in the Middle Class Bill of Rigbts (MCBR), A number of
education tax proposals were considered in some depth in November by the NEe and are now
under conslderatiQn for the State of Un ton Speech. The alternative proposals would be much
more cosHy. or to maintain cost neutrality would limit coverage in problematic ways. or
otherwise present structural problems for which answers have not been found. There is a
rhetorical allemative that supports the "guarantee" notion without these problems.
•
The Middle Cia.. 8m .fRlghts proposal cost about $39 billion over 7 years, (The Joint Tax
Committee scores it at $41.2 billion,) It phased-in a tax deduction (phased out at higher
incomes) fol' tuition paid up to a maximum deduction of$) 0,000 per tax filing unit for all
postsecondary students, regardless of institution and program. It covered 16.5 million
postsecondary students in coUege ru:lSi vocational training,
AJternatiycs were examined in order to provide a "guarantee" of Federal non-loan resources for
the first two years of public postsecondary education.
'The Guarantee Proposal would provide a refundable tax credit for the firSt two years of college
and tax deductions for the last three years of college, The tax credit would be for tuition paid l up
10 a maximum 0[$] ,200 per student; the tax deduction would be up to a maximum 0[$1 O;OOO!
like the MCBR. For this and aU otber proposals, institutions of higher education would have to
institute an information reporting system to verify claims by students or their families.
•
There are four major issues raised by this proposal: 1) The guarantee proposal would cost $54,2
biUioll. $15 billion more than the MCBR. 2) In addition to higher cost, the proposal climinlltes
7.6 mil!iun MCBR beneficiaries (mostly vocational school, part~time, and graduate students).
3) 11 atso provides a credit too small to make the '"guarantee" good in J8 States; this State
coverage problem would affect such States as MA, MD, MN, NH, NY and OH. 4) The
combination of a 100 percent credit and refundabiHty creates problems of administratjon and
incentives for ahuse.
�•
Guarantee Varialion 1 would address the cost issue in part, by counting PeU grants in the
$1,200 Guarantee. It would lower the cost to $48, I billion. still $9 billion more than the MCBR.
The State coverage issUe remains; this variation would eliminate 8 million postsecondary
students.
A further modification of this variation would restrict it to the credit only1 by eliminating the
deduction for In!, 4th, and 5th year students, which would cost slightly less than the MCBR
($37,8 billion). However, this eliminates another 3,1 million students. serving only 5 million
students in total, and still has the State coverage problem,
Guarantee Variation 2 - Count PeUlIIlli increase guarantee to $1,600 lIIlli eliminate tax
deductions. This would partly address the State coverage issue. (still excluding 9 States,
including MA, NH. and NY) and lower cost somewhat by eliminating the deduction, It would
still cost $47 billion. $8 billion more than the MCBR, and it would eliminate II.! million
beneficiaries.
Guarantee Variation 3 would bring cost down to the MCBR level ($37 billion) and bring back
about 2.6 million vocational and part-time students. but do it by restricting the credit to one year,
thereby eliminating the payment for the second year as well as the tax deduction, and would
return to the State coverage provided under the original guarantee proposal, still not providing
the "guarantee" in 18 States, In addition. 8,5 million fewer students than the MCBR would be
covered.
•
In sununary~ unless we are willing to spend a great deal more money, it is impossible to
develop a reallwo-year guarantee that serves the same population in all the States as the MCBR,
Another AI}proach'!
There is another approach to a guarantee that has none of the problems of the variations
on the MCBR, The Speech can declare what only student aid insiders now appreciate: current
ademl programs alreadx cuarantee enough mQ~ to ensure that anyooe can afford at least a
public postsecondary education.
This is because student loans are a pure entitlement, some parts with no income test, and
Pell grants operate like a quasi-entitlement for lower income persons, Other morc limited federal
programs supplement these with work study, more grants and loans,
Therefore, rather than promoting yet another new program the President ean achieve the
same impact of "guarantceing" postsecondary education by saying something like:
•
"Here's something all Americans should kno'w. The Federal government guarantees
financial access to at feast public college and postsecondary training to every qualified
person, young or old.
2
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"That's right - guarantees it. W. do this through a combination of grants and loans and
subsidized jobs. This is a promise the government will make so long as I am President.
"We don1t pay the full cost for the most expensive SChools, of course, but we do make it
possible for everyone to afford a public postsecondary college or a training institution,
and many private colleges.
l'The program improvements I support ~- Direct Loans with repayment tied to your actual
income so you need never fear default, higher Pen Grants, a stable and growing Federal
education and training budget, a tax deduction for tuition, an expanded workstudy
program, and a merit scholarship for the top students ofevery high school class -- all
enhance this guarantee.
"So if you qualify for an accredited college or training school, the Federal government
ensures that you can pay for iLM
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3
�February 2, 1996
MEMORANDUM FOR THE PRESIDENT
FROM:
CAROL H, RASCO
LAURA TYSON
SUBJECT:
STATUS OF G,!' BILL FOR AMERlCA'S WORKERS AND
THE ROLE OF THE GOVER.NORS
The purpose of this memorandum is to inform you of the position of the Governors
to key provisions of your GJ, Bill for America's Workers -- Skm Grants, One-Stop Career
Centers, School~to- Work and Funding Levels, Republican Governors are now working
actively against your position in Conference. often with the tacit silence or explicit support
of most Democratic Governors,
As one would expect. the Governors (including most Democratic Governors) oppose
our Skill Grant proposal. The idea was to shift the debate Qway from the Republicans
"block and cut" approach to training by creating an alternative that called for consolidation
in order to empower the individual as opposed to simply just moving training from federal
bureaucracies to state bureaucracies. Your GI Bill of Rights for American Workers puts the
money in the hand of the individual; resulting in a more market driven system with one
stop shopping and better information for each person.
Our proposal asks states to put in place a market driven system with one-stop career
centers. ensuring lhat individuals get the training they need. Therefore, it is of little
surprise that most Governors have expressed a desire for an approach that gives them more
discretion. Nonetheless, we feel confident that our approach is popular with the American
people and is one in which we should remain committed.
We have had some ~ though limhed - success with the Republican Congress. In the
House. the Repub!icans have sought deep cuts in training ~- up to 300.4. However, they
have been supportive of mandating vouchers for Adult Training. Local Workforce Boards
and One-Stop Career Centers. While we strongly disagree with their cuts, we have seen
real progress in the House in accepting your skill grant/voucher structure. In the Senate.
we have done less well. They have stayed with mostly a pure "block and cut" approach.
The Senate bill "authorizes" States 10 have a skill grant approach. But, it does not require
skll! grants. Furthermore, it does not require any spending on training at all. States have
almost complete discretion.
Also of note is training for younger people, The Senate Republicans have resisted
entreaties by the Governors to run School-to-Work education funding through the States.
It appears unlikely that the Governors will be your allies on any of the key issues that now
�,
divide the Conferees. Therefore. your discussion with the Governors on these issues does.
nOf offer much common ground.
Following is a more detailed summary of the Administration position, the position
the Governnrs have taken, and the status of these key provisions in the House and Senate
Bills.
1. Skill (;rants for Adults
•
The heart of your proposal is to consolidate the resources from dozens of adult
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tmining programs and put. Skill Grant worth up to $2600 in the hands of the
individual, This would empower dislocated and disadvantaged workers who are
unable to find new and bener jobs through job search to spend this voucher, for
example, at a community college learning whatevet skHls tbey choose to get ahead,
The Governors oppose indivjdual Skill Grants. The Governors contend that they
should be empowered to design whatever workforce system they believe best serves
lh(; needs of each state.
House BUt: Requires that States design and implement a system to provide
vouchers to dislocated workers and disadvantaged persons who can't find new or
better jobs with job-search assistance. Accepts your basic position that resources
should be placed directly in the hands of individual so that they can make their O'WTI
chokes.
Senate 8iH: Gives only iip service to your basic proposal for Skill Grants,
Authorizes hut does not require states to design and to implement a system of
training vouchers. Any training, whether through vouchers or otherwise. is
completely optional. The Secretaries nre authorized to offer ardncentive reward to
states that establish a voucher system for training adults.
One-Stop Career Centers.
Your G.1. Bill proposed to consolidate adult job search and reemployment programs
so that states working in partnership with the mayors and the pdvate sector in each
local labor market area would design and implement responsive One-Stop Career
Centers to provide (a) good information and counseling to individuals on jobs. skills,
careers, and education and training providers and (b) effective job search to match
individual jotrseekers with employer hiring demands.
The Governors have not actively opposed most of these provisions. The Governors.
however, do oppose any required participation by the private sector. unions. and the
mayors in design and implementation. The Governors have refu,<;ed to accept your
position that such market~driven reforms provide the means to empower individuals
to make their own informed choices about how best to get ahead.
House Bill: Includes strong one~stop career centers, supported by local public
private work-force boards. Embraces your position that such provide the basis for a
constantly improving market-responsive system of education. training, and job search
based on vouchers and informed choice of individuals.
Semde BiU: Requires states to design onewstop careers centers to provide
information, coun.seling and job search, Does not require locru workforce board,
Does not provide any requirement for training -~ through vouchers or otherwise -
for dislocated or disadvantaged workers who can not find new or better jobs with
their current skHJs.
w
�3. School-to-Work for Youth.
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You proposed that many vocational education and other youth programs be
restructured to support your hasic School-t(}~Work prim::iples. with funds flowing
through the SEAs and LEAs to fund additional support for your proposed reform of
" secondary schools and the pathways to careers and college,
The Governors have generally supported your Schooi·to-Work framework for youth,
but they want federal education and training funds for youth to flow through the
Governors rather than througb the schoois.
House Bm~ Adopts the principles .of School-to-Work (without using the name) but
makes no provision for continuation of the School-to~ Work seed capital grants, Job
Corps remains as a totally separate" program. but Summer Jobs is folded into tbe
YO\lth block grant as a permissible (but not required) activity_
Senate Bill: Adopts School~to~Work principles (and name) for consolidated youth
block grant. Requires states which have School~to- Work seed capital grants to
continue the activities and transformation promised in their npproved School-to~
Work plan in implementing the youth portion of their workforce plan, Separate
funding streams are provided for at-risk youth (to be based on School~to-Work
principles) and for Job Corps.
4. Funding
•
You proposed major increases in f~nding for Skill Grants, One~Slop Career Centers,
youth programs huilt around School-to~Work. consistent with your commitment to
greater federal investment in expanding educational opportunity for at! Americans.
•
The Governors -~ particularly the Democrats ~ .. initially expressed strong opposition
to cuts in authorized levels of funding, The Governors, however, have long been
•
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and are now much morc vocal in seeking flexibility in using federal education and
training funds as they see tit. including for "economic development activities"
proposed in the Senate biU that have virtually nothing to do with education or
training.
House Bill: Cuts the authorized levels 30% below current appropriation levels and
sends aU funds through the Governor. Provides Governors with discretion to "flex"
(i.e., transfer) 10% of funds between the youth-education block grant and the adult~
training block grant.
Scnute Bill: Cuts the authorized levels 20% below current appropriation levels but
requires that youth education funds go through SEAs and LEAS. Also permits
gov("rnors a 50% "flex" between the youth-education and aduit4raining block grants.
with governors authorized to use half of this "flex" ~~ at total of 25% of all federal
youth and adult workforce funds •• available to prop up failing firms with "economic
development " retraining grants,
Attachment: Administration Letter from Secretaries Riley and Reich to Conferees
",
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June 9, 1996
MEMORANDUM FOR
LAURA TYSON
GENE SPERUNO
FROM:
PAUL DIMOND
SUBJECT,
V
ff<!j
EDUCATION
c.r.
BlII for America's Workers (Michael Warren). Auached are three drafts -- (1) three
options, (2) background on OJ.BilI to date, and (3) possible alternative approaches to achieve
each principle stated in porus letter if the decision is made to negotiate, I defer to your
better judgment -- and ultimately that of the President -- on which option to pick given the
background to date and the current politica1 climate.
I offer only onc charge to you: avoid even the appearance of POrus caving in on the
basic principle of "weill expand individual opportunity and choiec if you'll take greater
personal responsibility" --
in this instance, through skill grants for dislocated workers. The
only real risk for POTUS is if he appears to "flip-flopu on this basic principle now that the
•
going has gotten tough because the House R's have run away for purely political reasOns from
the very principle they shared with us for the past year. George S, missed this point at the
last meedng with LEP: there is no risk of appearing to "flip-flop" if POTUS sticks to this
principle, 1'be Clymer N,Y. Times story makes clear that it is the two principles of Skill
GIants for Dislocated Workers and STW for Youth thal·are at really at issue now -- not
whether the Administration earlier urged R's, D's or conferees to mOve forward in order to
craft a bill to implement these principles ..
With the delay resulting from the staft "ncgOliations" foHowing LEP's presentation to
the oonfereC",s, this issue will be framed for LEP and for porus this week: you will need to
wei?h in accordingly!
F.ducation Tecbnology (fom Kalil, assisted by Henry Kelly.) 21st Century Teachers will
require sustained coordination with DoED, education groups, Tech Corps, and business
leaders to r.1ake sure that (1) teachers sign up this s:m:m:r. (2) there ~rc good ldck-off events
in Ihe fall, and (3) real follow-up with 100,000 teachers tcaching 500,000 coHcagucs over the
fall and winter. porus speech to NEA on July 2 shoukl'thank teachers for making this
commitment, continue the drum-roll of support for Technology Uteracy Challenge and his
call to r.oordinatc 21st Century Teachers with Net-Days and Back-to-Sehool Parent nights in
October. If the number of teachers signed up over summer is not adequate, the first two
weeks of the school year can be used as a final push to sign up tcachers with the support of
NEA-AFf, School Boards. and Principals.
•
Net-Days will also have to be
the business groups and the education
DoC, Kanter. Irving, and Lane in this
llgencies (inclucli,ng DoEd, HUD, AG,
coordinated with all of tbe groups, OVP. Tech Corps.
community. I recommend finding a way to integrate
process, with a continuing call on all of the other
NASA, 000) fO help, There seems 10 be some
�confusion over a Net-Day in the District: perhaps, Tom can get his arms around this.
•
Over the next several :-veeks, Kalil. Kelly and DoE<! must continue to press the Senate
appropriators and S.~t~'bi:!partiSa:nco8litioD (wilh suPPort from big and small business) for
funding Technology Uteracy Challenge - so thaI POTUS and LEPIMF can negotiate full
funding in final FY97 budget.
Finally, there js a possibility of bringing together business, labor, and interactive
providers (OoD, colleges and universities, and software companies) for some kind of
voluntary demonstration of the power of education technology for adults learning in the
workplace and at home. Kelly has been noodling around with this, and Kalil is interesled.
My inslincls caution lhal lhis will he hard to pull off this full, but Tom should advise you
whether it is worth investing any time in this before November, If he could pull it off, it
would he another demonstration of good news and forward-looking POTUS leadership.
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School Construction (Ellen Seidman, Michael Deich). Please be cautious, smart and creative
here. School Construction and repair is an integral component of very complex and very
diverse state-local school finance systems. The entire school finance issue is very
treacherous for any President. We fought hard (and rightly) to Slay out of this fray in Ihe
battle over Goals 2000 and ESEA Reauthorization. The education groups tried to include
"opportunity {Le" input] standards" as the price for going atong with higher academic and
achievement s.tandards, Among the many "opportunity" or input standards were, of courSe,
school faciHties. We successfully resisted this: we wanted no part of a "National State-Local
School Finance Reform Act" of 1994. In 1995, I also su .....fully resisted this same call
from education groups to make school construction ad school repair a "pre-condition U for
putting in education technology: the education groups once again backed off of this call when
if became clellr thal you can wire schools, put in interactive computers l and have grea!
software and leaching without having to tear ap¥t and replace even the most crumbling walls
of the wOrSt maintained schools. We shouldn't tall pre}' to the risk of geuing into the school
finance issue in 1996 in the guise of dealing with school facilities.
The basic problem with the school finance issue is simple:
no evidence that more dollars (or other inputs) produces results. The evidence is very mixed
ou whether poor kids live in poor districts thai have "less" capacity to raise revenue (or even
spend iess per pupil). Money spent from school operating budgets for maintenance, repair
,and renovatiOn is totally fungible with all other expenditures and requires a state-local choice
on priorities: it's a sUppery :;lope from repair and deferred maintenance 10 the entire school
the process of totally revamping their school finance
operating budget. Lots of states are
systems (generally reiying less on local property taxes and mOre on other sources of revenue).
School constmction bonds (for new construction, maintenance, rCRair or renovation) arc
already heavily subsidized by federal tax-exemption for bonds. Finally, the GAO study
should NOT be understood as defining 11fE problem. Consider a few critical questions: have
local districts made a rational choice to buy books, teachers, and administrators rather than
repair schoois? are local districts beginning to think about constructing smaller 21st century
schools and letting the bigger Hfactory model"sehools built for the "baby boom" thirty and
forty years ago wear out? do states and localities have the capacity to make their own choices
in
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it is a quagmire! There is
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.bout repairing the aging school slock or hnilding new schools1 Is the deferred maintenance
prim.rily in places where there are nOW fewer kids and tougher hndget choices need to he
made about whicb schools to repair and which to close1 Are more new schools needed in
expanding outer suburbs, exurbia. and the growing Soutb, Southwest, and West? is the teal
issue deferred maintenance on schools where they are or the need to build new schools where
the growing "baby boom echo" is moving 1 should the federal government further subsidize
this "migration" when the states and localities may have the fiscal capacity to pay their own
way? Be vcry careful in defining the prOblem lest you miss the mark or open a pandora1s box
-- including what we have. have not, or should be doing about the supposed (but in my view
mistaken) claim of an "infrastructure gap" more generally.
There are some affumalive points that we should make: First. the Qinton economic recovery
(and historically iow interest rates) have increased the capacity of states and localities to
address any school construction or repair.issues~ just like all other state-local finance and
public infrastmcture. Deich, DoEd and Treasury need to get this story fully ",searched and
told! Second~ the President has already made clear (e.g., in his speech at NGA education
summit) that be is in every respect TIlE EDUCATION PRESIDE!'.'T: and he has challenged
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states and localities to spend their doilarS morc wisely On what is impommt (e.g., rewarwng
good teachers, improving teaching and learning at schoo~ and home through higher standards
for ali, safety and discipline, education technology, and parental involvement rather than
wasting dollars on administration, school bureaucrats who have no contact with kids, or
protecting incompetent teachers). Third, if you want to add school repair or even new school
construction to the list of good things about schools that the President is for, then have a
National 21st Century School Construction and Repair Day to highlight Ibis and tout states
and localities that are building and renovating schools in neW ways SO that they are truly
schools for the new basic skHls of the 21st century -- not just factory model schools of the
mid-1950' or even the 1920's.
I worked in the area of school finance for years. Don't believe this one GAO report shows
anything except (a) a huge pan of the stock of schools built to serve the baby boom is noW
thirty to fifty years old and needs repairs and (b) states and locaJities arc the ones who have
both the fiscal capacity and the fundamental responsibility of making the hard choices about
what to do about repair of schools. new school construction, and whether to invest more in
bricks and mort\)T or in tenchcrs, a.dmjnistrators, books, or kids. Therets notl'ling the matter
with the President finding the means to challenge the American people to think harder about
the issue of what kinds of physical school fa,cilitics they want f-or their children at the dawn
of 1he new century. But, please don'l have the federal government step in to reSCUe states and
localities from the responsibHity and consequences of their own fiscal choices here.
FifUlUy, if you are going to make n proposal to restructure or supplement the current federal
•
subsidy of tax-exempt bonds for school construction, please do su because it makes: scnse for
aU federal support for public infrastructure and not because the federal government is going to
come to the rescue to solve some "school repair crisis." The ryal agenda of many inside the
a.dministration is that we should do more on "infrastructure" generally, and they view "school
repair" (or after they think harder about it, new "school construction") as the most eunsistent
and sympalhelic place to slart moving on "infrastructure" with this Education President.
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THREE OPTIONS FOR G.I. BILL FOR AMERICA'S WORKERS
Meet Ibe Bar or Kin Ibe Bill. Make clear that Republicans can either join the
President and the Democrats in meeting the bar set in Ibe President's letter, or the bill
is dead. Ir the Republicans refus<: to meet the bar after negotiations, hammer them for
caving in to unjustified right-wing extremism in refusing to join the President in
expallding opportunity for dislocated workers and youth who will take responsibility
for choosing how hest to get ahead in tbis new age of possibility. [This ""uld be done
(a) by " very visible White House lead and POTUS speech or (h) by dragging the
process out over time with the congressional D's an&a few eHte media stories.]
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Negotiate to Meet tbe Bar. Assuming that any staff negotiatiOns are unlikely to
produce substantial movement on the two major issucs t have the Chief of Staff make it
clear to the respective Chairs and Ranking members that only real negotiation between
the principals On how to meet the President's principles -- not a statement of
respective positions by staffs -- will produce a bi-partisan bill that is acceptable to
the President (E.g., either don't repeal the School-to-Work Opportunities Act or
exclude secondary education from the bill altogether; plus require states to give
priority to serving dislocated workers, including with a Skill Grant of a size, amount
and use to be determined by each States in full cooperation with localities. the private
sector and the education community and phased in over time.) If a real negotiation
doesn't achieve results. prepare to hammer the R's a,;; above.
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Negotiate 10 make progress in meeting Ibe bar but prepare to sign the bUt.
Assuming 1hat nny progress can be made in negotiations (e.g., on funding. running the
education money through the schools rather than the governors, local workforce
boards, Secretary sign-off of state plans). the President Can point to overall progress
in reforming workforce development -- e.g" building vocational education around
school-to-work principles; building job search around mOre accessible labor market
information, mOre costumer responsive one-stop centerS, and more accountable local
consortia of business, labor, education, and local officials; and sympathetic governors
touting Schooi~to-Work and [raining vouchers). At the signing ceremony, the
President can also make clear, e.g., (aj his unwavering support for full budget
appropriations and (h) his renewed call for building on the $1,500 Hope Scholarship
Credit to expand opportunity for all Americ:ms. including particutarly disloc:ncd
workers who want to leam new skills to find new and better jobs.
nle political reality is that Candidate Dole and the Republicans need a bill signed far more
•
than the President -- to show (a) they aren't against aU education and training a!1d (b) they
didn't pull away from hi-partisan work to improve the bill because of the unjustified.
extremist opposition of the right-wing elements of their party. All three options are based on
the President continuing to fight for his basic bargain with the American people -- to expand
individual opportunity and choice if they'll take personal responsibility. This presents an
oppor1unity for the President to distinguish his policy, leadership and resolve: as explaJned in
the attached background memo, all of 1he constituency interests, the Democratic members of
Congress, and the elite commentary on any outcome (whether an exit strategy or a bill
signing) will foHow the President'S lead as long as it is based on -- and is understood -- as
the President deCiding how best to advance hj8 basic bargain with the American people.
�BACKGROUND
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The President'. Proposal. The President proposed his 0.1. Bill for America's Workers in
December 1994 as an integral part of his Middle Qass Bill of Rights. The guiding principle
is to expand the opportunities for working families to make their own choices about how to
invest in a better future for themseJves and for their children, as with the $10,000 education
deduction and expanded Education IRA. In his G.I. Bill component, the President proposed
to consolidate a maze of federal job-training and education programs to achieve two
oomplementary objectives:
•
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For J)[slocated Workers -- to e""ble hard-working Americans who lose their jobs
to choose for themselves what new job to take and, with a $2600 Skill Grant, what
skills to learn to find a better job. Control over job training would be shifted from
unwieldy bureaucracies directly into the hands of workers who can choose for
themselves what training best meets their needs and aspirations,
For Youth - to enable the rest'of the stateS to join the 27 that arc already working
with local business, schools and higher education to build on the bi-partisan School
to-Work Opportunities Act in communities all across the country. This transition
assistance will enable more youth to learn the relevance of education and meeting high
standards to their future, and -- with their parents -- to choose for themselves among
clearer pathways from school to higher education and good jobs ralher (han being
tracked into watered-down curriculum. dropping out or dead-end jobs .
The President in his balanced budget proposed funding for FY97 th.t can make (he promise
of this new G.I. Bill real -- S1.3 blUion for dislOC<lted workers and a total of $1.5 billion to
help states and loca1itic:s expand school-to-work opportunities for youth. In this time of
great Change, the President has made clear that every working family deserves the security of
knowing that Ihey if they do lose their job, they won't iClsc their health care or their pension
and they will have expanded opportunity to choose how best to find a new and better jOb.
y_ic:san Su~ resident's Skill Grant proposal was supported from the outset by
/~,.I'-'1'!,ck
Kemp and AI From
0 called "for members of Congress of both parties to discard
p ·san..squabbling nd cooperate on the measure
.can~h¢lp-.tr.i'fUworIang-;A;rm:rlC<lns
acquire (he ,kills they need (0 lift tholr inoomes.
~es, Jurio 20, 1995.
House.:. Throughout 1995 the: Administration worked cooperatively on a bi-partisan
basis with til(: House: Committee members to give stateS the flexibility to design their own
skill grant sYI.tems so that workers. could choose to use the training vouchers most effectively,
for example at community colleges or at growing firms looking for additional workers as the
recovery continues to tighten labor markets all across the country. Before the vote on the
0use Floor, Representativc Rigg (R. Cal.) discussed the hi-partisan nature of the
Committee's work and hailed Skill Grants: "IW1e have included. .,an individual voucher for
job training reci ients •...a career grant. What we are really trying to do is tcll American
workers th
ey Wl ave
ter say in determining what kind of career training is right
.t:..!or them." Cong. Rec. H 9148.
.king for House Democrats, Ranking Member Clay
urged Democrats
c bill -~ but only on the express condition that the bi-panisan
agreement to continue the transition of the School-tn-Work Opportunjty Act be worked out
0
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despite the growing expreSsion of opposition from "ultra conservative" groups. [Cong. R.[if
9155.1 Sub-committee Cbair McKeon (R.OII.) who had worked closely with ranking
Democratic Member Williams (D. Mont.) gave his personal assurance that in conference the
fin.1 bill would (:Outinue support for the school-to-work transition through its already
scheduled expiration in ZOO 1.
Senate. In the Senate, there was broad bi-partisan suppon for expanding s<:hool-to
work opporrunjties for youth and adding the full force of federal vocational education funding
to a.liSist states and local communities to achieve their own reforms. In addition. Minority
Leader Dascblc, Ranking Minority Member Kennedy, Senator Breaux:and many other
Democratic members introduced S.6 on the first day of the new Congress to signal
Democratic support for assuring essential support and choice -- through Skill Grants -- for
dislocated workers. Chair Kassebaum, however, was adamantly opposed to Skill Grants on
the ground that Govemo~ should be free to choose whether to provide any training at ali for
adults and. if so, through whatever means they choose. All Democrats united in late August 10
block a bungling amendment to invite Governors to use this unlimited discretion to steal
federal taxpayer support for working Americans to pay for welfare reform. At the urging of
the Administration, Democratic members finally joined to support passage of the Senate
Workforce Development But -- for purposes of getting to the conference and working on a
bi-panisan basis to include the best features from both bills, e.g., the "Career Grants" from
the House bill.
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In February, 1996 Majority Leader Anne)' urged passage of the bHl because it "takes
ntrol away from bureaucrats, who arc in no position to know where the jobs a!5. and puts it
n the hands of workers searching for training." N.Y. Times. p,l, Marcth 3D 1996. Thereafter,
the National Alliance of Business urged the Conferees to "authorize the use of skill grants or
~ouchers as a primary tool for se~ing dislocated workers ... [and to] retain Current !School-Io
~ork Opportunities] law" .." In the final agreement on the FY96 Budget, a total of $1.1
biHion was appropriated for Dislocated Workers and $1.4 bUilon for school-to-work
opportunities and vocational education -- aided by the pros;x:ct of the conferees working on
a bi-partisan basis to complete ayeement on the structural reform of federal support fOf
secondary education ana for dislocated workers.
j
RepUblicans are Caving in to Extreme Conservative Opposition. Since then, the bill has
b~come "bogge,!-.dO'.'IJl.!n.5;ongress and threatened by attacks from very conservative groups."
N.Y, Times. p,l Marc~..3~ 1996, The Eagle Forum complained that enabling workers to
access job opcni~»n-computcrs through new information networks would somehow tum
the government into a "Big Brother," while the Family Research Council falsely charged that
the expansion of school-to-work opportunities might compel "all students" to march into <:1
"vocational track." (ld.) These conseIVative groups launched personal attacks on Republican
members who worked on a hi-partisan basis: and threatened to mise money for their
opponents in the upcoming primaries. Represcntatjvc Hyde (R. Ill) scnt a Dear Colleague
letter signed by prominent conservatives. urging Republicans to "'Ole against the bill.
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The upshot was tbat the Republicans froze the Democrats and 1he Administration out of the
discussions in the conference and ran away from any hi-partisan effort to improve the
separate bills in conference. As Ranking Democratic Senator Kennedy noted, "the iong
promised overhaul by Congress of Federal jOb-training programs is now being jeopardized by
�,
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the unwillingness of Republicans to agree On reasonable reforms, such as President Ointonfg
training vouchers." (1d.) The Republican oonferees oontemplated passing a partisan bill that.
as Hou~,~~_G9'Jdi~@.•• r.~.J. ~needed.;tbe RFP.'!blican leadership "made about 60
chariges· to the bill ·to·allay "[the1ooncem," 'or the extreme right. Omsi,te.! with their House
Budget Resolution, this partisan Republican proposal would:
•
for dislocated workers --cut job search and training support for Dislocated Workers
by more than 1/3 and leave the choice Over job training in tbe hands of state
bureaucrats rather than putting it in the hands of rcsponsjbJe American workers
•
for youth -- repeal School-tn-Work Opponunities for youth altogether.
The President signals that be won't Break his Basic Bargain with the American People.
On May 20, 1996, the President wrote to the Conferees 10 Jet them know that he would not
accept this partisan c.aving in to right-wing extremists: "I cannot accept a conference bill that
does not...authorize spending [at] the levels proposed in my FY 97 budget; ann dislocated
workers with sufficient information and purchasing power, through skill grants, to choose the
training that IS right for them; preserve national funding for school-ta-work infrastructure
building grants"." The President urged the: conferees "to craft an acceptable bi-partisan
bill...fully incorporating my G.t Bill." IMay 20, 1996 letter attached.]
Every Democratic member of the Senate and House Committee (with the exception of
Senator PeU) signed off on a draft leuer supporting the President's pOSition; and [here is every
reason to expect that Senator Pell would fully support the President if directly asked.
Representatives Clay and Williams bave been particularly frustrated by the refusal of their
Republican colleagues to live up to the express assurances (e.g., on School-to-Work) made
before the votc on the committee blU on the House Floor; and the almost total exclusion of
House Democrats from conference discussions in which the House Republicans conceded on
important clements ot the House Bill -- like Skill Grants for Dislocated Workers -- 10
Senator Kassebaum added further insUlt. Senator Kennedy has become equally frustrated by
the refusal of the RepUblican leadership on the conference to address the conccrns of thc
Democrats ;:md the President. The Democrats arc looking for direCtion from 'the President as
io how to proceed from this point forward.
•
On J:.me 5, Cornmitrec Demo'crats joined with Chief of Staff Leon Panetta in personaUy.
urging the Republican conferees to get back to work on a bi-partisan basis to implement the
essential principles set forth in the Presiden! new GJ Bill. Toe conferees agreed to have their
respective staffs meet for one week with AdmInis1rlltion officials 10 detennine whether and, if
so, how a bi-partisan agreement might be reached to jmpicmGnl these principles,
Constituency Groups. The mayorS and counties, the education community, the l\ationaJ
Alliance of Business, and labor groups all support the principles in the President's letter, TIle
Governor's continue to urge "passage of bi-partisan legislation" with funding to continue the
School-to- Work transition "from a national pool of funds. ~ Although the governors "believe
that federal law should provide states with the maximum flexibility to deSign a system that
meets ihc workforce needs of the slate," they also urged Ihe conferees to "rccognize the cost
of new responsibilities" in certifying and overseeing providers "if the act mandates the usc of
vouchers to provide services."
•
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ISSUES FOR CONFERENCE ON H.R. 1617
Sufficient autborizatIon or .ppropri.tIODS. It is imperative that the bill authorize
spending for tbe consolidated programs at least at tbe levels proposed in the FY 1997
Budget. Future appropriation action must not be constrained by insufficient
authorizations that imprudently cut funding for education and training investments.
The Republican conferees propose "such sums. "
We can propose adding "a [minimum dollar amount] or such sums as
may be necessary .... " This would enable both sides to claim victory and
to reserve the substance of the issue for the appropriation process.
Adequate funding for skill grants Cor dislocated workers. The bill must earmark
no less than $1.3 billion for dislocated worker assistance, and ensure that these
individuals have sufficient infonnation and resources -- including through the use of
skill' grants -- to choose the training that is right for them.
The Republican conferees may be willing to offer a "priority on workforce
development services" at one-stops for "dislocated workers. "
We can propose adding" (a) a priority on workforce development
services at one-stops for dislocated workers, including the "offer of an
individual career grant Idesigned in such amount, duration, and useable
at such providers, including firms that are expanding employment, as
the state may determine pursuant to its plan] for dislocated workers who
are unable to find a new job after making use of the workforce
development services" and (b) make the rapid reemployment of
dislocated workers and the implementation of an effective system of
individual career grants a required component of state plan and one of
the express goals for incentive awards (both in original state plan and in
performance bonuses). lin the alternative, could add (aJ amj (b) as
precondition for state qualifying to use any "flex account." Either of
these fits the spirit of Governor's Ictter and the lettcr of NAB
principles.]
Dedicated national funding to continue the School-to-Work implementation
grant'S. The School-to-Work Opportunities Act should not be repealed. To date, 27
States have recci'.'ed implement<!tion grants under the School-to-Work Opportunities
Act. Dedicated funding to continue School-to-Work implementation grants is
essential to permit these States to complete th~ir system building activities, and to
provide an oppoI1unity for all remaining States to do the same. Without a strong,
lasting school-to-work infrastructure, the promise of this bill for youth development
will be unfulfilled.
The Republican conferees offer requirement that states continue implementation
of the School-To-Work Transition activities.
We can propose an alternative: either (a) drop repeal of the STW
Opportunities Act from bill or make effective date of repeal 2001 (or
2000) or (b) drop in-school education component of bill entirely.
IEither of these is much more consistent with Governors and NAB than
what R conferees propose.]
�•
•
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AccountablUty to taxpayers for results. The bill must ensure that taxpayer doU"",
are not invested in programs that don't deliver results. Since Federal funds support
tbe workforce development system, the final bill must establish the Federal
government as a full partner in determining measurable goals and objectives,
establishing expected levels of perfonnance for State and local areas, and approving
plans. To protect against fraudulent and incompetent training provide.., this bill must
include strong provisions on "gatekeepiog" and consumer infonnation. The Secretaries
of Education and Labor should be clearly responsible and aerountablo for
administering workforce education and workforce training and employment activities!
respectively. Their resouroe and staffing needs should be determined through the
annual hodget and appropriations proc....
. The Republican conferees may offer decent gatekeeping and backing off anv
resource and staffing mandates on the agencies.
We can p~1luiding' (a);roport language on fuli authority of
Secretaries to review substance of plans, to provide technical assistance,
to approve goals and benchmarks, "(b) mnge of incentives/sanctions for
quality of plans-guals-henchmarks and for actual perfonnance in
meeting go.'lls and benchmarks and (c) "staggering" implementation date
so that Secretarial approval required to get started in FY 97 or FY 98
(and states not getling flexibility of new law until J999 if there plan is
not approved).
•
State and local education agency control and responsibility for education
resources. The conference bill must ensure that State and local education agencies
have responsibiBty for planning, administering. and making decisions relevant w
education rcsourc:es. Full collaboration of State and local workforce boards and the
private seClor with State and local education agencies is essentiaL
•
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The Republican conferees will concede on this issue~
Adequate, properly targeted resources for aduit education and training, in-school
youtb, at-risk youth, a summer jobs program, and the nation's labor exchange,
The conference bill must ensure a priority for these activities and for sufficient
funding, at levels consistent with the FY 1997 Budget. In addition. the bill must
contain within-State allocation formulas, as in current law, that target at-risk youth
and that direct in-school funds to school districts with greatest need and post
secondary educa~ion h~stitutions that $Crvc disadvantaged individuals, The Wagncr
Peyser Act, which establishes the public employment services, must remain the
fundamentalleg:slativc charter for our nation'S public labor exchange services.
ensuring the prudent use of employer-paid federal unemployment taxC5,
II defer to those who know these issues better. I
Local governmental responsibility for job training. While Governors should have
final approval authority over the local plans affecting job training funds, elected
officials from our cities and counties must have responsibility for administering and
overseeing local One-Stop C1reer Center and job training funds. through workforce
development boards that bring together husiness and Jab<Jf and other community
leaders to pian and develop flexible job training programs appropriate to their
communities,
The Republican conferees will compromise on this issue.
�EXE;CUTIVE
OFF1C~
OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASH!NGTON, D. C.
20503
June 25, 1996
MEMORANDUM FOR THE PRESIDENT
.
./
From:
Jack Lew aad Laura D'Andrea Tysonl-'V I
Subject:
Status of the Workfurce Development Legislation - Your G.1. Bill
It is increasingly unlikely that workforce development legislation incorporating your G.I,
Bill principles will emerge from Congress in signable form, ifat all, this year. The emerging
legislation does not meet your Slated principles or the principles articulated by keY Congressional
Democrats,
The G.I. Bill for America's Worke ...
Eigbteen months ago, you proposed a radical restructure of federal job training. Central
principies of your proposal are:
•
Empower individuals with "Skill Grants" for adult training, and with the pcrformaace
and labor market information needed'to make wise training choices.
•
Streamline Adult training services through "One Stop Career Centers," building on
the One Stop system reforms launched by the Clinton Administration.
•
Expand School-to-Work Opportunities for youth by completing this Clinton
Administration reform that gives every State five y..... of grants (27 .Ireedy have them)
to build systems that help all youth move more smoothly from school to careers,
..
Co [lsolidate 79 programs into an integrated, simplified syst"em~
•
DcvoJve significant responsibility to Governors, while preserving a strong role for
State and local education officials and locaa, private~sector led, workforce boards,
•
Improve accountability by focusing on resuIts, not process, and rewarding exceptional
performance.
•
Reforming vocational education and adult education to integrate them inlo this new
system.
�..
Action in the House and Senate
Both the House and the Senate embraced workforce training refonn, albeit in very
different fonns; we had been working with Senator Kennedy on the ideas during 1994. In the
Senate, Senators Kennedy and Kassebaum lead the effort~ in the House, Representatives
Goodling, McKeon, Williams, and Clay.
I. the Honse, the Democratic and Republican committee leadership forged. working
relationship. Over objections from certain .conservative groups, the <:ommittee produced a bill
incoijlOraling many G.l. Bill principles, including your market-based Skill Grant concept. While
by no means fully satisfying to us, the Administration olTere
'fled support and worked with
Democrats to ensure House passage to get the bill to co erence. so
improvements could be
mode. On September 19, 1995, the bill passed by a vo 0045-79.
In the Scoate, we found less support (or Skill Grants on either side, and'stTong
Republican pressure to curtail the federal role. This bill was also not satisfactory, as we made
dear in Statements of Administration Position. Again. the Administration encouraged our
Demoemtic allies to support tile billlhrough committee and floor p ~o that a better bill
could be sought in Conference, On October 11,1995, the bill p ed 95-2. '\
Effect of the FY 1996 appropriations battle
During the protracted FY 1996 struggle, education and training interest groups helped us
win the appropriations battle, supporting many categorical programs which would have been
consolidated under our original proposal. As a resul~ we flnd it more difficult this year to
support consolidation that fails 10 protect key programs they fought with us to protect -- such as
Summer Jobs for youth. dislocated worker assistance. vocational education, and adult education,
The Conference to date
Conference began in October 1995, and immediately staUed. House and Senate
Republicans were divided and unable to overcome philosophical and policy differences. Certain
conservative groups, such as Phyllis Schlafly's Eagle Forum, have exerted extniordimuy pressure
on House Republicans to defeat the biH, According to Representative Goodling,. !lover 60
changes" were made to satisfy them, includjng repeal ofSchool·to~Work.
Forsaking the traditional bipartisan approach to education and job training, Republicans
excluded Congressional Democrats and the Administration from the discussions. Recently,
Democratic staff have been allowed: some information and influence on lesser issues. but no real
voice in decisions, Senator Kennedy and Representative Clay have complained openly about the
conduct of this conference, to no avail.
2
�,'
The emerging conference bill would meet a few of your principles: consolidating
programs; partly adopting a Quc·stop center concept; devolving (albeit excessively) control to
Governor:;, and improving vocational education and adult education.
Much more importantly, the Republican conference agreement would fail to incorporate
key G,I, Bill features,
•
It would include only Sklll Grant O(pilots" of indeteqninate size in each State, limited to
dislocated workers -- even though House Republicans had accepted in the House-passed
bill a Skill Grant formulation virtually identical to ours,
•
It rails to provide adequate funding overall, by authorizing only "such sums," giving no
guidance to appropriators. and it does not require States to finance your priorities at or
near your request levels. such as, dislocated worker assistance, Summer Jobs, and
vocational and adult education. Without assurances of adequate ftmding: and without
acceptance of Skill Grants, this consolidation v.'Ould be more ofa "block and cut" than a
refonn and strong commitment to empower individuals.
•
It repeals the School-to-Work Opportunities Act,
In addition! the conference agreement diminishes, rather than enhances, local control, by
requiring local officials to negotiate with Governors to establish their role and responsibilities. It
also provides inadequate accountability for results, preventing the Federal government from
assuring minimum quality standards, allowing each State to define perfunnance factors and
success differently (and without meeting'challenging standards), and excluding many training
providers from the requireme~t to provide consumer reports on performance.
Our efforts to influence the conference outcome
After consultation with Senator Kennedy, Representative Clay~ and others, Secretaries
Riley and Reich, and Directors Rivlin and Tyson met with Democratic and Republican members
to convey your strong desire that the conference bill includes your GI Bill principles.
In a May 20th letter to the conference leadership (attachment # I), you spelled out your
requirements for an acceptable bill. In early June, the Chief of Staff met with Senator
Kassebawn. Representative Goodling, and others to reinforce your message. In a final effort to
detennine if Republicans want to negotiate with the Democrats. we extended a good faith
compromis~ offer which preserves your principles but offers some movement (attachment #2),
Unfortunately, Republicans have not responded to our otter.
J
�Prospects for n bUi
Senator Kassebawn apparently sees little hope for a bill: she blames the Administration
for its failure.
Senator Kennedy is on the record as staunchly opposed to the current conference bill .
passing the Senate. The Education and Labor Departments are working on ensuring Democratic
Senate support for stopping a bad bill from passing: At this point, few of the interest groups
the education community, organized labor, and local officiats - want the bill that is likely to
come out ofconference.
,.
It is remotely possible that a good bill can be salvaged. Our compromise offer still is on
the table~ but we are pessimistic that ccnstructive negotiations win result.
In the meantime, White House staff and the agencies are working to make sure that the
Administration's refonn proposal-~ and the Republican Mti~refomt position ..~ are represented
accurately in the media.
.
If this legislative process does fail. it is critical that we make dear that the Republicans
rejected our individual-oriented, non-bureaucratic Skill Grant refonn. We must also use the
occasion to make the strong case for why our GJ. Bill of Rights for America's Workers is a must
for the future.
4
�•
September 26, 1996
MEMORANDUM FOR lAURA TYSON
GENE SPERUNG
i?f)
FROM;
PAUL DIMOND
SUBlEcr;
G.1. BILL FOR AMERICA'S WORKERS -- next steps?
CC;
BRUCE REED
Assuming that the Conference Bill rejecting thc President's Skill Grant proposal cratern as
Congress races to adjourn, we need to consider the next steps to keep the President's b~ic
message and principle alive -- during the campaign and for enactment if he is re-elected.
Consider the following suggestion:
.
1. porus declare (a) victory for appropriations support ror School-In-Work and (b) outrage
at Republicans in authorizing commiUces for caving into to extreme right-wing opposition.
•
2. porus express dismay that Congressional Republicans could not agree on providing Skill
Grants to h~lfd-work American workers who are dislocated and want to learn new skills to
find new and better jobs in this dynamic economy. Uke Portable pensions and health care
for America's workers, expanding the opportunity to learn new skills is vital to enabling every
worker to know that they can make it in this new economy: this will insure sure that
America's workers have the tools they need to make their own choices about how to get
ahead. For r!wr reusoro, POTUS proposes. r!wt a refund4ble tax credit of $261)() be made
available ro every dislocated worker. {The pay-for this can be cut in DoL budget. I
recommend that we !!Ql include Itunderemployed workcrs in this Skill Grant tax cut now, for
two reasons, First, both Treasury
OMB will be unwiUing at this time to do so for a
variety of insufficient reasons that can be dealt with later in context of budget proposal.
Second, I believe that Skill Grants for the "underemployed should be integrated into a ~ew
proposal for PeH Grants as a part of Budget Reconciliation: a complement to I-lope
Scholarships and Dislocated Worker Skill Grants as a refundable tax cut (or other mandatory
inv~'tment). Pelt Grants already provide a far larger number of "underemployed" workers
with the cquivalent of SkHJ Grants than DoL appropriations for "job training.")
lt
and
lt
porus
3.
issue executive order On existing DoL Skill Grant national demoS/basc closure,
School-tn-Work, and America's Job Bank (and maybe a couple of related items. Tim
Barnicle is working on a proposed draft.)
•
I recommend that Genc be authorized to run this process immediately with OMS, Treasury,
Dol, DoEd to drivc this to a good outcome ASAP.
�, '.,
;
•
November 7, 1996
MEMORANDUM FOR GENE SPERUNG
BRUCE REED
FROM:
PAUL DIMONDP..o
SUBJECT:
OJ. BILL AND FY98 BUDGET STRATEGY
Introduction. The major strategic judgment is .to decide how much (.nd what portion) of the
President's education and employment agenda you want to slam into a major balanced budget
'reconciliation and how much you want to leave 10 the authorization and appropriation process.
This wlll requite careful attention to priorities and tactical considerations, This memo lays
out a range of options that I hope stimulates your more insightful and experienced planning
on the politics and the budget.
•
I also believe these options should be considered against a cross-cut look at a mini
max strategy based on maximum and minimum cooperation from a somewhat cooperative to
totally hostile Congress and the maximum use of the President's bully pulpit to perSuade the
American public that they do have the tools to make the historic crossing from the stagnation
in tbe waning of the old industrial economy to a mote rewarding future in the flowering of
the new economy in a new century. The main mesage and goal of all this should be to put
good information and increased purchasing power in the hands of individuals and families so
they can' learn the skills they choose to make that crossing.
Finally, 1 believe that Secretary Rubin CDuld be a major player in pushing this
succesSfully through a balanced budget reconciliation, particularly if he were joined by •
prominent RepubIican (as Secretary of Education or Labor) like fonner Governor McKernan
who is well-connected with Congress, business and the Governors. Any such strategy will
require cooperation from Treasury in assuring that compliance and administration burdens are
bom by competent institutions other than IRS.
G.J. Bill for America's Workers. The mC1Ximum that can be placed in a reconciliation bill:
•
••
Skill Grant Refundable Tax Credits (administered througb UJ. system with advance
payment upon proof tbat have search for new or better job for 8 weeks without.
success, and could be part of U.L reform with mandatory Skill Grants) for unemployed
workers;
similar SkiH Grants for "underemployed" workers (I would be tempted to merge this
with Pc.1I Grants, which already financcs more education and training for "undcr- .
�·
;
"
.
'
..
•
•
employed. low-income" perwns than aU of JPTA put together)
job search credits (say $250 refundable credit through U.I. system) for unemployed
workers,
You could also omit one or both of the last two and rely on authorizing and appropriation
process (e,g,. a Higher ed reauthorization bill th.t adds a new title to Pel! Grants), For
S<Xlring purposes. individual Skill Grants would only eost the incremental beyond whatever
Hope Scholarship. Education Tax Deduction. and Pen Grant would otherwise cost for
individual for one year), [Whatever else we do. we should separate the adult from the youth
purtions of G.!. Bill, The youth portions of the G,!' Bill will bave to go through tha
discretionary authorization and appropriation process. although the youth portions could build
on a variation of skill grants and School-Co-Work by incenting states and localities to allow
state-local school funds to follow youths over the mandatory school-age (to their own choice
of "school" until they earn a high school diploma and learn a marketable skill).
j
•
If you-subrnit all. of the adult portion of last year's GJ, BiH to the authorizing and
appropriation process, we will end at most a block grant to the states, to be administered
through One-Stop Reemployment Centers (a euphemism for letting the governors fight it out
with the Employment Service) and a requirement that States use individual sklll grants that
they design for any training and education for dislocated (and disadvantaged) workers. This is
not awful, but it docs dilute the message, the tools, and the signature ~f the President.
[Whatever the decision here~ we do need to pay attention to requiring aU providers to make
better jnfonnation On their programs and results available to all consumers.]
Student Financial Aid. There are three parts to this you need to think about: student loans,
Pelt Grants, and the mandatory ta;x cuts (or grants).
•
•
Student IoartS are already on the mandatory side of the budget. But we need 10 relhink
our strategy on direct lending vs. the guarantee loan program: the competition from
Direct Lending plus improvements in terms. performance, and lowcring.the subsidy
costs and waste of the GSL.s, privatizing Same Mae, arid enabling GSLs to offer
income-contingent loans may wen make the Guaranteed Student Loan Program more
efficienf, convenient and effective over time than Direct: Lending. We, therefore, need
10 consider how to declare and get credit lor a well-deserved victory here rather than
manning the ramparts to defend Direct Lending per se and set ourselves up for defeat.
(One possibility is 10 call both GSLs and Direct Loans "HOPE Loans" (i.e,. Higher
OPportunity Education Loans) to complement the: President!s Hope Scholarships. In
any event, our emphasis should be on delivering the most effective purchasing power
to borrowers based on a few key principies: better information and gatekeeping for
providers, mOre affordable and convenient access for borrowers to use at the school of
their choice, 25-year terms and Pay-As-You-Earn and other repayment plans for
borrowers, more effective collection, etc. CWe could press such HOPE loans eitber (a)
through continuing [he competition between direct loans and GSL.:; and touting the
competition as gn:al nO maHer who "wins" or (b) by developing an integrated loan
program borrowing the b",,, features of Direct Lending and GSLs.)
�•
•
Pel/ Grants could also be ineluded in a budget reconciliation, either as a mandatory
individual spending prognun or as.. part of a refundable credit (administered by
student financial aid system rather tbaa IRS in either case). If you want to consider
an inc
..... in the dnllar amnunt of this individual grant (e.g., to put the purclu!sing
power back to where it was 25 years ago), I don't see how this can he done on the
discretionary side of !be budget througb appropriations. If you dn choose to go to the
mandatory side and increase the amount of this individual grant, I recommend careful
consideration of changing the terms of Pell Grants so that they bear more of the
President's mark (e.g., increasing amount to pay for the cost for first two years of
public-4 year college, with students required ", rely more on student loans for last
two years and for graduate school). This would support POTUS idea of making first
two years of college universal. You also need to be prepared -- and to take credit -
for - a legislative compromise that leads to an increase in PeU Grants (and Skill
Gronts) in exchange removing refundebility feature of Hope Scholarship; this wiU be
much easier to consider doing if PeU Gronts and Skill Gmnts are a part of the budget
reconciliation.
•
Hope Scholarships and Education Tax Deduction obviously arc integral components of
a balanced budget reconciliation. My rwo suggestions; (a) consider i~asing the
aroount of the Hope Scholarship so that it pays median cost of first ""{years of 4
year public college (that would he more popular and put more real purchasing power
in hands of individuals and families than tailoring to community COlleges) and (b)
consider administering tbe refundable portion of Hope Scholarships througb student
financial aid (and U.1. systems) so that this purchasing power (along with Skill Grants,
Pell Grants. and student loans) is effectively in the hands of the consumer up front.
•
Better information and gatckeeping On results of providers would increase (a) popular political
support and (b) the on-going accountability and constant improvement through competition of
such a market system. Some short-term fig leaf to cover us on increases in tuition costs
resulting from increased purchasing power might also build political support now) but this is
tess critical fClr support and long-run effectiveness than making sure that administration and
rornpliam;.c in this new system of federal support for financing
training is nol loaded onto an already beleaguered IRS.
•
post-second~ry
education and
�•
November 12, 1996
MEMORANDUM FOR
LAURA TYSON
GENE.SPERL.ING
FROM:
PAUL DIMOND It)
SUBJECT:
SEPARATING G.!. BILL PROVISIONS?
BRUCE REED
If you do not think it is possible to achieve a &ingle~ integrated education and training
•
\
account to achieve the President's goal ofputtiug good information and increased
purchasing power in the hands of individuals ond families, PtlJ11 elaborates an nltcmBtive
.pproaon that retains the severnl funding streams but eoordina"'s their implementation.
The major issues are: (a) the amount ofbudget rCsoun!<:s you want to place in """h
stream, the total education and trnlning budget and the extent to which you want to place
these funding streams on the mandatory side ofthe budget. including as refundable tax
credits; (b) tho extent oftho cooolin.tion between funding streams, both in tenos ofthe
users and the administration and gatekeoping; and (0) whether you wish to add non-degree
programs as permissible uses of these funding streams. The pwpose of this analysis is to
raise key issues so that the President is not blind-sided by the current budget proposals
orDoED and DoL that fail to implement the key principles of individual empowerment,
market accountability, and rewards forperfonnance.
Part,II proppscs a workable alternative to bring the youth programs in line with the
President's basic prinCiples.
The premise underlying both parts is that we cannot and should not again propose a
single G.l. Bill for·America's Work"", au1horizing legislation tbat seeks to tie aU DoEd
and DoL youth and adult education trnlning and job searcb programs together. That
approadl did not work in the kelt Congress and will not work in this Congress: it wiD
only invite unnecessary baitles with the Republican Right Wing about School-to-Work
and Repubti<:an centrists about devolving all education and training to the states.
1. Adollll
•
Hope scholarship -- rerundablc tax credit for <>due.tion and training, degree and I-year
certificate programs. $1500 fortw(l years, including l~year certificate. (Issues: raise to
$2500 pcr ycsr? Include non-degrce programs? l.fonnation include percentage and
time for students to achieve degree or certificate (an~ if inelude non-degree programs,
job and income results fot students in non-degree programs)? Gatekeeping?
Administer through DoEd student financial assistance, with advance payment of
refundable portion credit? How coordinate with IRS?]
Education tax deduction ~~ for education and training, degree and i -year certificate
5]0,000, [Issue$.: include non-degree?)
.
CO'd
00$,
�~'.'
.
"
•
.'
DislOOaled WorkF Skill Hope Crediti -- afier 12 weeks ofjob sean:;h, refundable tax
credit. Total of$25oo [including SI500 Hope Scholarship). (Issues: how relate to
portable health car.? Raise amount to 530007 DoEd student financial assistance
administer, with UIIES confuming 12 weeks ofjob search? Include oon«gree?)
Pen Grant for ~egree and I-year certificate, [Issues; mandatory or discretionary? increase
to $3000 or $3500, perhaps in ••change for limiting to fust two ye",,? Add non
degree? gate-keeping and information?)
.. Student loans, with Pay-As-You Earn and 25.year sliding scale repayment plans [Is,ues:
. include non-degree? how set bar and conditions ofOSL and Direct Lending to make
loans more affordable and convenient to srudents. with better information, gate*
keeping, and collection?)
[lssuo=S25ttrcfundable credit for job-search? or rely on interactive job banks and
counseling/placement from the sean::h fums thal represent employers?]
[WorkfOrce Development Act - if omit non-degree !rom Hope Scholarship, Pell Onmts
and Student Loans, then go with principle of devolving DoL programs to ....te., with
states having t1exibility to design individltal grants for job sean::h and training, with
sign-off by local labor market WOrkforce boards made-up of majority of private
employers and by couitty-city executives; approval by Secretary of DoL in
consultation with Secretary of Education)
[Welfare:to-Wolje lobs Challonge based on principle of state-local design to connect
.
welfare-la-work participants to real jobs in «panding loltallabor markets1
•
2. Youth Education and Training
DoL.:. p;erf!'fJlla,,,,,, inoenlive awiu:d. to states and localities that put per pupil K-12
resources behind students 17-24,withoul highschool diplomas to learo to earn high
school diploma, wO!:kplaee skiU.and (a)job or (blaccess topo't-secondary education.
E.g., $1000 per student with £500 to state-locality for .""h student they get back into
learning program that meets cODd~tions and another $500 for each such student earning
a high school diploma, workplace .kill certified by local workforce hoard and (a) job
with 1500 hours work per year or (b) access to po.t-secondary education. (Issue:
need 8llthorization? ifso, don't tie in any way to School-to-Work so that R's don~t
have to face issue of right-wing a.ttack on STW. Also: assume that keep summer jobs.
Job Corps; small fund for «penments, demos?)
Vocational Education/ACE Graauation Challenge: incentive awards for retaining more
students in "school" until eam high school diploma that means something to
employers and colleges. Use bully pulpit to encourage range of choices.
apprenticeships. experienced base learning, charter schools, etc.
continue to fundi and implement STW. but use bully pulpit to coordinate with new DoL
incentive awards and DoEd gradUation challenge .
•
�..J.
.
•
:L~h Wt'v~ .~~ ~
~ ~ o.n 1<J 1tc ~ .
. ,,~ ~ GM} rJ-Or~~
•
•
k~
'"fI.L,.
1~.
~ ~ JLo:1' .
60
r
1Wt "
f1~
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-
- I' . '
",.
.,!
• ------
December 19, 1996
MEMORANDUM FOR TIIE PRESIDENT
FROM:
GENE SPERUNG
BRUCE REED
SUBJECf:
FEDERAL GUARANTEE TO ALL AMERICANS TO INVEST IN
FOST-SECONDARY EDUCATION AND TRAINING TIIEY
CHOOSE
Proposal: Un.der our direction your education and training policy team (Ken Apfel OMB,
has
a budget neutral proposal to
Mike Smith
••
mandatory side
enahJe every American
student, and worker '"88tUees-to invest
post-secondary education and training
they choose. The proposal achieves this goal by using the savings from simplifying the Hope
Scholarship "nd further reforms in the student loan program to expand the amount of Pcll
Grants to the median cost of one year of college education and to provide greater flexibility
so that individual Education and Skill Grants are available to low- and moderate-income
families and students- and dislocated and "underemployed" workers.
Discussion: There is no objection from any of your Principals on policy grounds to this
proposaL In combination with Hope Scholarships, Education and Training Tax Deduction,
and Pay-As-·You-Eam student loans this proposal implements your long-time goal of
guaranteeing that every American fnmll y, student, and worker -- regardJess of income or
wealth -- will have the resources to invest in the education and training they choose. As
such the proposal provides the platform for a Second Inaugural Address that gives substance
to all of your previous related proposals -- Pay-As-You-Earn Student Loans, Middle Qas:s
Bill of Rights. GJ. Bill for America's Workers, and Hope Seholarship.
In contrast, all of your Principal Advisers express substantial or grave concern that the
proposal of such a guarantee will compliCJte your ability to achieve a Balanced Budget
Reconciliation agreement. Director Raines is therefore analyzlng whether the substance of the
proposal could be achieved on the discretionary side of a balanced budget agreement.
+o~"~Vt"\;Mil~' ~~,
•
Recommendation: Given the importance of these issucsJ( we recommend that this proposa1
and alternatives thereto be presented to you, with all of the: pros and cons, so that you can
discuss the issues fully with your Principal economic and education advisers .
Decision:
Yes, present proposals for discussion .nnd decision
it
N\) , • -:[ cln (\)J~ . .~
f\.U..J. A..
U
·eiSet1SS ftilthcI
dJ.,~
<f{11J-.
(.<4)J.
~
·0
�•
January 16, 1997
MEMORANDUM FOR GENE SPERLING
I?1J .
PROM
PAUL DIMOND
SUBJECT:
SCHEDUUNG REQUESTS BEFORE SOlU
\j"t9J
>',
cc:
) ,,\
'''-'
VVc>
.1
MICHAEL WARREN
~
MEUSSA GREEN
KA1HYWAllMAN
I. ..
VAmerica's Workers. Ken Apfel wants to convene a Deputies' meeting with
OMS, NEe, DPC, DeEd, and DeL to set up process and provide marching orders for the next
month on this. He would like fur you to join in this meeting and WllIlts to schedule it for
tomorrow, Friday, January 16 or Tuesday, January 21. Instead, I recommend thai you
convene the meeting to make clear thai you (and the NEC, with Bruce if you wish) are in
clwrge oftire process; and forther. that the clwrge to the group is to develop options flir
achieving jederal skill grants for dislocated and low-income workers, includingfor OOl/
degree programs. that (a) build offor coordinate with our Pelt Grani/Student Loan proposal
and operotian and (b) can be implemented through budget reconciliation negotiation or
through aulhorizing/appropriation process that can pass this year. All other oomponents of
the GIBFAW proposal can then evaluated for separate action through the .
authorizingiappropriarion process. If you do not assert leadersbipover the process or
substance, you nm tl,e risk that Ken - who has many other higher priories and will argue that
other options should be presented - will steer the process toward a oornpromise that will
undermine the President's chief priority. If you can't attend the meeting then deputi2>l
se
to deliver the message and set up the process you want•
..
2.
. obs OIa1Icnge. Ken would like to convene a similar meeting of deputies for this
on the
day, oonsistent with your schedule. Although I do not fool as strongly about this,
I beli
that you (with Bruce) should convene this meeting and set the agenda.
." "'.
\
3. Leaders of Business! other Constitueney Interests: no more than 15 minute
introdnction meetings. You need to set a.'lide an afternoon or morning to knock off
about 20 of these meetings. It will build your credibility, and a network of prople who
want to feel like they can be consulted or help support the President.
Bob Jones, President of National Alliance of Business. He has been very supportive
. .. •
,
on Goals 2000, High Standards, S1W, 2-yoars of college universal, Skill Grants,
W1W He is one of the few per.sons, given his business and Republican support, who
,
has succeeded in building truly bi-pattisan support for porus. He knows the issues,
is smart, and will conlinue to be a trc'ITlCIldous ally.
'
•
Tony Camevalc, Morty Barr, and an ad hoe coalition of labor atld business leaders
-.
~.
�~
.. ,
'"
:"'
•
•
•
•
•
•
who support coordinated system of federal Skill Grants, Pen Grants, Studont Loans,
Hope &:holarships, Education and Training Tax Deduction, expanded IRA, Sec. 127 to
help all individuals and furnilies invest in the post-secondary education and training
they choose.
Sol Horwitz and Ron Boster fulm Committee for Economic Dc'Velopment. As you
know, tlJey basically write reports on a .variety of topics; goncrally, they are supportive
of porus economic plan, but their most recent report - "Growth With Oppcrtunity"
- does. .
.
probably executive director of O1amber of Commerce and small business group (check
y.ith Dorothy Robyn)
National Association of Manufacturers (chock mth Ellen on who); BRT (you mil
know who to invite);
NGA (Ray Shapock'sp?); Conference of Mayors (Cochran); League of Cities (Don
Belin); the ool'l'lfl'll1lble organization of counties (have someone get name from Marcia
Hale's office)
Organized labor (you should get a list together of those mth whom you haven't met
already).
Sorry to add to your already too extensive burdens!
•
•
�
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
Clinton Administration History Project
Creator
An entity primarily responsible for making the resource
Cinton Administration History Project
Council of Economic Advisers
Department of Commerce
Central Intelligence Agency
Department of the Interior
Department of Defense
Corporation for National Service
Council on Environmental Quality
Department of Justice
Domestic Policy Council
Department of Education
Department of Energy
Environmental Protection Agency
Federal Emergency Management Agency
General Services Administration
Small Business Administration
Social Security Administration
United States Agency for International Development
National Economic Council
Office of Management & Budget
Office of National Drug Control Policy
Office of Personnel Management
Office of Science & Technology Policy
Office of the Vice President
United States Trade Representative
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-2001
Description
An account of the resource
<p>The Clinton Administration History Project describes in detail the accomplishments of President Clinton's Administration for the period 1993-2001. The records consist of the histories of 32 agencies or departments within the Executive Branch. In general, each organization associated with the Project submitted a narrative history along with supporting documents. These narrative accounts are primarily overviews of the various missions, special projects, and accomplishments of the agencies. The supplementary records include substantive memos, press releases, briefing papers, and publications illustrated with photos and charts.</p>
<p>Agencies:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Council+of+Economic+Advisers&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Council of Economic Advisers</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Central+Intelligence+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Central Intelligence Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Commerce&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Commerce</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+the+Interior&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of the Interior</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Defense&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Defense</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Corporation+for+National+Service&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Corporation for National Service</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Council+on+Environmental+Quality&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Council on Environmental Quality</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Justice&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Justice</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Domestic+Policy+Council&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Domestic Policy Council</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Education&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Education</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Energy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Energy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Environmental+Protection+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Environmental Protection Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Federal+Emergency+Management+Agency&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Federal Emergency Management Agency</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+General+Services+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the General Services Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Health+and+Human+Services&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Health and Human Services</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Housing+and+Urban+Development&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Housing and Urban Development</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Labor&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Labor</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+National+Economic+Council&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the National Economic Council</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Management+and+Budget&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Management and Budget</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+National+Drug+Control+Policy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of National Drug Control Policy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Personnel+Management&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Personnel Management</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+Science+and+Technology+Policy&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of Science and Technology Policy</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Office+of+the+Vice+President&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Office of the Vice President</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Small+Business+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Small Business Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Social+Security+Administration&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Social Security Administration</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+State&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of State</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Transportation&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Transportation</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+the+Treasury&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of the Treasury</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Agency+for+International+Development&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Agency for International Development</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Department+of+Agriculture&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Department of Agriculture</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+United+States+Trade+Representative&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the United States Trade Representative</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=39&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=History+of+the+Department+of+Veterans+Affairs&range=&collection=21&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">History of the Department of Veterans Affairs</a></p>
Is Part Of
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<a href="http://clinton.presidentiallibraries.us/items/show/36051">Collection Finding Aid</a>
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
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Clinton Presidential Library & Museum
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Adobe Acrobat Document
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1474 folders in 111 boxes
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Paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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NEC – Workforce Investment [1]
Creator
An entity primarily responsible for making the resource
History of the National Economic Council
Clinton Administration History Project
Date
A point or period of time associated with an event in the lifecycle of the resource
1993-2001
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 43
<a href="http://clintonlibrary.gov/assets/Documents/Finding-Aids/Systematic/Administration-History-finding-aid.pdf">Collection Finding Aid</a>
<a href="http://catalog.archives.gov/id/1497354">National Archives Catalog Description</a>
Provenance
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Clinton Presidential Records: White House Staff and Office Files
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Adobe Acrobat Document
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Clinton Presidential Library & Museum
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Reproduction-Reference
Date Created
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6/24/2011
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1497354-nec-workforce-investment-1
1497354