    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [February 5, 1996]
    [Pages 164-165]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Prior to a Roundtable Discussion With the National Governors'
    Association
    February 5, 1996

        Good morning. Governor Thompson, Governor Miller, to all the
    Governors, welcome back to the White House and back to Washington for
    the annual meeting of the NGA. I know that you have been working very
    hard in a bipartisan fashion to try to reach agreement on a number of
    issues that are important to your people and to us here in Washington,
    including Medicaid and welfare, issues of education and training, and I
    look forward to discussing those.
        I do want to say that all these issues have to be seen in light of
    the most important issue still facing us here today, and that is the
    Federal budget. As required by law, today I am submitting to Congress my
    proposed budget for fiscal year 1997. It balances the budget in 7 years,
    according to the Congressional Budget Office's economic estimates. I
    want the Governors now to work with us to balance this budget, and I am
    very hopeful that we can achieve a balanced budget this year.
        The plan I propose cuts hundreds of programs, continues our efforts
    to downsize the Government, but it protects Medicare, Medicaid,
    education, and the environment and cuts taxes for working families. It
    reforms welfare and addresses our challenges to renew schools, provide
    economic security, and preserve the environment with the initiatives
    that I announced in the State of the Union, including those on the
    environment and the educational initiatives of a $10,000 deduction for
    college tuition, more merit scholarships, and a million young people
    able to work their way through college in work-

    [[Page 165]]

    study. It includes the health care reforms that have historically
    received bipartisan support in the Congress, including requirements that
    people can't be cut off their insurance when they change jobs or when
    someone in the family gets sick.
        As you know, the Republican congressional leadership and I have
    spent many months discussing this budget. We have spent well over 50
    hours together in small meetings. Now, in common, our plans have $700
    billion in specific spending cuts. That is more than enough to balance
    the budget in 7 years and to provide a modest tax cut. I hope we can set
    aside partisanship and divisions, as you often do in the NGA, and
    provide a balanced budget plan to the American people in the near
    future.
        You know how important this is. You have seen some of what happens
    when we have Government by continuing resolution. It really leads to
    irresolution. We have Head Start programs all over the country now
    staggering from month to month, school boards across the country
    actually planning for some layoffs because we do not have a final budget
    passed by the Congress.
        I know you all have a stake in resolving this matter. I know we're
    going to discuss at least two issues today that if they could be
    resolved would help us to pass a balanced budget. And I am looking
    forward to it, the discussion of Medicaid, which I would like to say
    just a few words about--more when our private discussion starts. We want
    to restrain the cost of Medicaid. Our budget proposal has a rate of
    increase for Medicaid which is far below the projected rate of increase
    of overall health care costs. We know to achieve this we have to give
    the States far greater flexibility on how Medicaid will work. We also
    know, in this administration, that we must maintain a commitment, a
    national commitment, to seniors, to pregnant women, to poor children, to
    people with disabilities, that they will receive the quality health care
    they are now receiving.
        Second, I believe we're close, Congress and I, to an agreement on
    sweeping welfare reform that is very consistent with what the Governors
    have advocated for years. It would reward work, require family and
    responsibility strengthening. It would advance the values of the United
    States instead of undermining them. I know that you have some new
    proposals on that today, and I look forward to hearing them. I do
    believe we're quite close on welfare reform with the Congress. I do
    believe it is terribly important, and I hope we can do it, again, just
    in the next few weeks.
        Third, I hope we have a chance to discuss how we should overhaul our
    Nation's job training system. More and more business leaders I speak
    with around the country tell me that they believe that in order to break
    this cycle of stagnant wages and job insecurity that is gripping about
    half our work force, we are going to have to do more to upgrade the
    skills of the existing work force. We're going to have to do it in a
    more innovative way. The ``GI bill'' for America's workers that I
    proposed would provide a collapsing of these scores of Government
    training programs the Federal Government has into a voucher that workers
    could receive directly and take to their local community college or
    other approved institution. I know we have some differences of opinion
    on that, but I do believe that in this case people are most likely to
    know their own best interests as long as they are protected from fly-by-
    night operations by our common endeavors.
        At any rate, it is clear to me that unless we do something
    substantial to upgrade the skills of the existing work force, it's going
    to be difficult for them to break out of the cycle of stagnant wages and
    job insecurity that has prevented a large number of American families
    from enjoying the economic recovery that our country has had for the
    last few years.
        Now finally, let me say something that I think we can all agree on.
    This is President Reagan's 85th birthday. They're having a big party in
    California. And I think every American citizen, and I know every
    American Governor, will join the Vice President and me in wishing him a
    very happy birthday and sending our best wishes to his entire family.
        Thank you very much.

    Note: The President spoke at 9:45 a.m. in the East Room at the White
    House.