[Weekly Compilation of Presidential Documents Volume 31, Number 31 (Monday, August 7, 1995)]
[Pages 1342-1349]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Remarks to the National Governors' Association in Burlington, Vermont
July 31, 1995
Thank you very much, Governor Dean. And thank you for the gift of
those proceedings. I discovered two things looking through that book
very quickly, which will be interesting perhaps to some of you. One is
that the first Governors' conference--one thing I knew and one I
didn't--the first Governors' conference was called by President Theodore
Roosevelt to bring all the Governors together to develop a plan to
conserve our Nation's resources. It was an environmental Governors'
conference.
The second thing was that they really set the tone of bipartisanship
which has endured through all these years--something I didn't know--I
saw that the two special guests at the Governors' conference were
William Jennings Bryan and Andrew Carnegie. So they were spanning the
waterfront even then.
I really look forward to this, but I kind of got my feelings hurt. I
understand Senator Dole came in here and told you that my cholesterol
was higher than his. [Laughter] I came to Vermont determined to get my
cholesterol down with low-fat Ben & Jerry's Cherry Garcia. [Laughter] I
do want you to know that my standing heart rate, however--pulse rate--is
much lower than Senator Dole's. But that's really not his fault, I don't
have to deal with Phil Gramm every day. [Laughter] I think on matters of
health, age, and political anxiety, we have come to a draw.
I thank you very much for having me here. I love looking around the
table and seeing old friends and new faces. I thank Governor Dean for
his leadership of the Governors' conference. And Governor Thompson, I
wish you well, and I thank you for the work that we have done together
over so many years. I thank all the State officials from Vermont who
came out to the airport to say hello and the mayor here of Burlington. I
know that your former Governor, Madeleine Kunin, is here, the Deputy
Secretary of Education. She has done a very great job for us, and I
thank her for that.
I want to talk to you today primarily about welfare reform. But I'd
like to put it in the context of the other things that we are attempting
to do in Washington. I see Senator Leahy and Congressman Sanders back
there; Senator Jeffords may be here. I think I'm taking him back to
Washington in a couple of hours.
I ran for President because I was genuinely concerned about whether
our country was ready for the 21st century, because of the slow rate of
job growth, 20 years of stagnant incomes, 30 years of social problems. I
knew that we were still better than any other country in the world at so
many things, but we seemed to be coming apart when, clearly, we've
always done better when we went forward together as a nation.
[[Page 1343]]
I have this vision of what our country will look like 20 or 30 or 40
years from now. I want America to be a high-opportunity, smart-work
country, not a hard-work, low-wage country. I want America to be a
country with strong families and strong communities, where people have
the ability to make the most of their own lives and families and
communities have the ability to solve their own problems, where we have
good schools and a clean environment and decent health care and safe
streets.
I think the strategy to achieve that is clear. We have to create
more opportunity and demand more responsibility from our people, and we
have to do it together. I have concluded, having worked at this job now
for 2\1/2\ years, that we cannot achieve the specific strategies of
creating opportunity or providing for more responsibility unless we find
a way to do more together.
In the last 2\1/2\ years, as Governor Dean said, I have spent most
of my time working on trying to make sure we had a sound economic
policy, to bring the deficit down and increase trade and investment in
technology and research and development and education, to open up new
educational opportunities, and to work with you to achieve standards of
excellence with less direction from the National Government.
We also have tried to put some more specific responsibilities into
the programs that benefit the American people. That's what the national
service program was all about. We'll help you go to college, but you
need to serve your country at the grassroots level. We reformed the
college loan program to cut the cost and make the repayment terms
better, but we toughened dramatically the collection of delinquent
college loans so that the taxpayers wouldn't be out more money. We
passed the family leave law, but we've also tried to strengthen child
support enforcement, as so many of you have.
I want to help people on welfare, but I also want to reward people
who, on their own, are off of welfare, on modest incomes, which is why
we have dramatically expanded the earned-income tax credit, the program
that President Reagan said was the most pro-family, pro-work initiative
undertaken by the United States in the last generation. Now, this year,
families with children with incomes of under $28,000 will pay about
$1,300 less in income tax than they would have if the laws hadn't been
changed in 1993.
We also tried to change the way the Government works. It's smaller
than it used to be. There are 150,000 fewer people working for the
Federal Government than there were the day I became President. We have
dramatically reduced Government regulations in many areas. We're on the
way to reducing the regulatory burden of the Department of Education by
40 percent, the Small Business Administration by 50 percent. We are
reducing this year the time it takes to comply with the EPA rules and
regulations by 25 percent and establishing a program in which anybody,
any small business person who calls the EPA and honestly asks for help
in dealing with a problem cannot be fined as a result of any discovery
arising from the phone call while the person is trying to meet the
requirements of Federal law.
We have also tried to solve problems that have been ignored. We
reformed the pension system in the country to save 8\1/2\ million
troubled pensions and stabilize 40 million more. Secretary Cisneros has
formed an unbelievable partnership to expand homeownership with no new
tax dollars, which will get us by the end of this decade more than two-
thirds of Americans in their own homes for the first time in the history
of the Republic.
The results of all this are overwhelmingly positive but still
somewhat troubling. On the economic front, we have 7 million more jobs,
1\1/2\ million more small businesses--the largest rate of small business
formation in history--2.4 million new homeowners, record stock markets,
low inflation, record profits. And yet--and a record number of new
millionaires, which is something to be proud of in this country, people
who've worked their way into becoming millionaires; they didn't inherit
the money. But still, the median income is about where it was 2\1/2\
years ago, which means most wage-earning Americans are still working
harder for the same or lower wages. And the level of anxiety is quite
high.
On the social front, you see the same things. The number of people
on food stamps is down. The number of people on welfare
[[Page 1344]]
is down. The divorce rate is down. The crime rate is down in almost
every major metropolitan area in the country. The rate of serious drug
use is down. But the rate of random violence among very young people is
up. The continuing, gnawing sense of insecurity is up. The rate of
casual marijuana smoking among very young people is up, even as serious
drug use goes down.
So, what we have is a sense in America that we're kind of drifting
apart. And this future that I visualize, that I think all of you share,
is being rapidly embraced by tens of millions of Americans and achieved
with stunning success. But we are still being held back in fulfilling
our real destiny as a country because so many people are kind of shut
off from that American dream.
I am convinced that the American people want us to go forward
together. I am convinced that there really is a common ground out there
on most of these issues that seem so divisive when we read about them in
the newspaper or see them on the evening news. I think if just ordinary
Americans could get in a room like this and sit around a table, two-
thirds of them or more would come to the same answer on most of these
questions. And I believe that we cannot bring the country together and
move the country forward unless we deal with some issues that we still
haven't faced.
I've tried to find a way to talk about really controversial issues
in a way that would promote a discussion instead of another word combat.
I've given talks in the last few days about family and media, about
affirmative action, about the relationship of religion and prayer to
schools in the hope that we could have genuine conversations about these
things.
But I am convinced that almost more than any other issue in American
life, this welfare issue sort of stands as a symbol of what divides us,
because most Americans know that there are people who are trapped in a
cycle of dependency that takes their tax dollars, but doesn't achieve
the goals designed that they have, which is to have people on welfare
become successful parents and successful workers and to have parents who
can pay, pay for their children so the taxpayers don't have to do it. I
am convinced that unless we do this, and until we do it, there will
still be a sort of wedge that will be very hard to get out of the spirit
and the life of America.
There is here--maybe more than on any other issue that we're dealing
with that's controversial--a huge common ground in America, maybe not in
Washington yet, but out in the country there is a common ground. Not so
very long ago there were liberals who opposed requiring all people on
welfare to go to work. But now, almost nobody does. And as far as I
know, every Democrat in both Houses of Congress has signed on to one
version of a bill or another that would do exactly that.
Not so long ago there were conservatives who thought the Government
shouldn't spend money on child care to give welfare mothers a chance to
go to work. But now nearly everybody recognizes that the single most
significant failure of the Welfare Reform Act of '88, which I worked
very hard on and which I missed, was that when we decided we couldn't
fund it all, we should have put more money into child care even if it
meant less money in job training, because there were States that had
programs for that, and that you can't expect someone to leave their
children and go to work if they have to worry about the safety of the
children or if they'll actually fall behind economically for doing it
because they don't have child care. We now have a broad consensus on
that.
When Governor Thompson and Governor Dean and others came to the
White House to the Welfare Reform Conference in January, I was very
moved at the broad consensus that while we needed more State
flexibility, in one area we had to have more national action and that
was on standards for child support enforcement, for the simple reason
that over a third of all delinquent child support cases are multi-State
cases and there is no practical way to resolve that in the absence of
having some national standards. If everybody who could pay their child
support and who is under an order to do it, did it, we could lift
800,000 people off the welfare rolls tomorrow. That is still our
greatest short-term opportunity, and we all need to do what we can to
seize it.
There's also a pretty good consensus on what we shouldn't do. I
think most Ameri-
[[Page 1345]]
cans believe that while we should promote work and we should fight
premature and certainly fight out-of-wedlock pregnancy, it is a mistake
to deny people benefits--children benefits--because their parents are
under age and unmarried, just for example. And I think most Americans
are concerned that the long-term trend in America, that's now about 10
years long, toward dramatic decline in the abortion rate might turn
around and go up again, at least among some classes of people, if we
pass that kind of rule everywhere in the country.
So I think there is a common ground to be had on welfare reform. I
proposed a welfare reform bill in 1994 which I thought achieved the
objectives we all needed. I thought it would do what the States need to
do. I though it would set up time limits. It would have requirements for
responsible behavior for young people, requiring them to stay at home
and stay in school. It would have supported the efforts of States
through greater investments in child care and would have given much
greater flexibility. It didn't pass.
In the State of the Union this year I asked the new Congress to join
me in passing a welfare reform bill. It still hasn't passed because,
unfortunately, in 1995 there have been ideological and political in-
fights that have stalled progress on welfare reform and have prevented
the majority, particularly in the Senate, from taking a position on it.
Some of the people on the extreme right wing of the Republican
majority have held this issue hostage because they want to force the
States to implement requirements that would deny benefits to young,
unmarried mothers and their children. But I believe it's better to
require young people to stay at home, stay in school, and turn their
lives around, because the objective is to make good workers, good
parents, good citizens, and successful children. That's what we're all
trying to do.
So I'm against giving the States more mandates and less money,
whether the mandates come from the right or the left. I'm also opposed
to the efforts in Congress now to cut child care because, I say again,
the biggest mistake we made in the Welfare Reform Act of '88 was not
doing more in child care. We would have had far greater success if we
had invested more money then in child care for people on welfare.
Now, I believe that it would be a mistake--if we cut child care and
do all this other stuff, we could have more latchkey children, we could
have more neglected children. And there are all kind of new studies
coming out again saying that the worst thing in the world we can do is
not to take the first 4 years of a child's life and make sure that those
years are spent in personal contact with caring adults, where children
can develop the kind of capacities they need. So this is a very big
issue if your objective for welfare reform is independence, work, good
parenting, and successful children.
Now, you know I believe all this. That's why we worked so hard to
grant all these waivers, more in 2\1/2\ years than in the past 12 years
combined. But I also have to tell you that I'm opposed to welfare reform
that is really just a mask for congressional budget cutting, which would
send you a check with no incentives or requirements on States to
maintain your own funding support for poor children and child care and
work.
And I do believe honestly that there is a danger that some States
will get involved in a race to the bottom, but not, as some have
implied, because I don't have confidence in you, not because I think you
want to do that, not because I think you would do it in any way if you
could avoid it, but because I have been a Governor for 12 years in all
different kinds of times and I know what kinds of decisions you are
about to face if the range of alternatives I see coming toward you
develop.
I know, with the big cuts now being talked about in Congress in
Medicaid, in other health and human services areas, in education, in the
environment, that you will have a lot of pressure in the first
legislative session after this budget comes down. And I know that
somewhere down the road, in the next few years, we'll have another
recession again.
And it's all right to have a fund set aside for the high-growth
States. I like that; it's a good idea. But what happens when we're not
all growing like we are now and we were last year? What happens the next
time a recession comes down? How would you deal
[[Page 1346]]
with the interplay in your own legislature if you just get a block grant
for welfare, with no requirement to do anything on your own, and the
people representing the good folks in nursing homes show up and the
people representing the teachers show up and the people representing the
colleges and universities show up and the people representing the cities
and counties who've lost money they used to get for environmental
investments show up?
I don't know what your experience is, but my experience is that the
poor children's lobby is a poor match for most of those forces in most
State legislatures in the country, not because anybody wants to do the
wrong thing, but because those people are deserving, too, and they will
have a very strong case to make. They will have a very strong case to
make.
So I believe we ought to have a continuing partnership, not for the
Federal Government to tell you how to do welfare reform, but because any
money we wind up saving through today's neglect will cost us a ton more
in tomorrow's consequences. And this partnership permits you to say, at
least as a first line of defense, we must do this for the poor children
of our State.
I also believe there is a better way to deal with this. And I'd like
to say today, I come to you with essentially two messages, one I hope we
will all do with Congress and one that we can do without regard to
Congress.
First, we do need to pass a welfare reform bill that demands work
and responsibilities and gives you the tools you need to succeed: tough
child support enforcement, time limits in work requirements, child care,
requiring young mothers to live at home and stay in school, and greater
State flexibility.
The work plan proposed by Senators Daschle, Breaux, and Mikulski
ends the current welfare system as we know it and replaces it with a
work-based system. I will say again, the biggest shortcoming, I believe,
of the bill that I helped write, the Family Support Act of 1988--on your
behalf or your predecessors--was that we did not do enough in the child
care area. The Work First bill gives States the resources to provide
child care for people who go to work and stay there. It rewards States
for moving people from welfare to work, not simply for cutting people
off welfare rolls. It is in that sense real welfare reform.
I know a lot of you think it has too many prescriptions, and I want
to give you the maximum amount of flexibility, but it certainly is a
good place to start to work on bipartisan efforts to solve this problem.
And I will say again, to get the job done, we've got to have a
bipartisan effort to do it.
I want to compliment Senator Dole for what he said here today. I
made a personal plea to Senator Dole not very long ago to try to find a
way to make a break from those who were trying to hold the Republican
conference in the Senate hostage on this welfare reform issue so that we
could work together. And today, if I understand his remarks--and I've
read the best account of them I can--he proposed getting rid of
ideological strings in requirements on States and giving States more say
in their programs. And that is a very good start for us to work
together.
Some of you may agree with him instead of me on that, but as I
understand it, he also proposes a flat block grant with no requirement
for States maintaining their present level of effort or no maintenance
of effort requirement of any kind. As I said, maybe it's just because I
have been a Governor, I think this is a very bad idea. I don't think we
should do this, because this program, after all, is called Aid to
Families with Dependent Children, not aid to States with terrible budget
problems created by Congress. [Laughter]
But while we have differences, Senator Dole's speech today, given
what's been going on up there, offers real hope that the Congress can go
beyond partisan and ideological bickering and pass a strong bipartisan
welfare reform bill. The American people have waited for it long enough.
We ought to do it. I am ready to go to work on it. And I consider this a
very positive opening step.
I hope, again I will say, that you will consider the great strengths
of the Daschle-Breaux-Mikulski bill, which I also believe is a very
positive opening step and shows you where the entire Democratic caucus
in the Senate is. They presently all support that.
My second message to you is, we don't have to wait for Congress to
go a long way
[[Page 1347]]
toward ending welfare as we know it; we can build on what we've already
done. Already you are and we are collecting child support at record
levels. Earlier this year, I signed an Executive order to crack down on
Federal employee delinquency in child support, and it is beginning to be
felt. Already in the last 2\1/2\ years, our administration has approved
waivers for 29 States to reform welfare your way. The first experiment
we approved was for Governor Dean to make it clear that welfare in
Vermont would become a second chance, not a way of life. Governor
Thompson's aggressive efforts in Wisconsin, which have been widely
noted, send the same strong message.
Now, we can and we should do more, and we shouldn't just wait around
for the congressional process to work its way through. We can do more
based on what States already know will work to promote work and to
protect children. Therefore today I am directing the Secretary of Health
and Human Services to approve reforms for any State on a fast track that
incorporate one or more of the following five strategies.
First, requiring people on welfare to work and providing adequate
child care to permit them to do it. Delaware recently got an approval to
do this, so have several other States. Why not all 50?
Second, limiting welfare to a set number of years and cutting people
off if they turn down jobs. Florida got approval to limit welfare,
provide a job for those who can't find one, and cut off those who refuse
to work; so did 14 other States. Why not all 50?
Third, requiring fathers to pay child support or go to work to pay
off what they owe. Michigan got approval to do this, so did 13 other
States. Taxpayers should not pay what fathers owe and can pay. Why not
all 50 States?
Fourth, requiring underage mothers to live at home and stay in
school. Teen motherhood should not lead to premature independence unless
the home is a destructive and dangerous environment. The baby should not
bring the right and the money to leave school, stop working, set up a
new household, and lengthen the period of dependence, instead of
shortening it. Vermont got approval to stop doing this, so did five
other States. Why not all 50?
And finally, permitting States to pay the cash value of welfare and
food stamps to private employers as wage subsidies when they hire people
to leave welfare and go to work. Oregon just got approval to do this, so
did Ohio and Mississippi. Arizona and Virginia can do it as well. Why
not all 50 States? This so-called privatizing of welfare reform helps
businesses to create jobs, saves taxpayers money, moves people from
welfare to work, and recognizes that in the real world of this deficit
we're not going to be able to have a lot of public service jobs to
people who can't go to work when their time limits run out. I think this
has real promise.
So I say to you today, if you pass laws like these or come up with
plans like these that require people on welfare to work, that cut off
benefits after a time certain for those who won't work, that make teen
mothers stay at home and stay in school, that make parents pay child
support or go to work to earn the money to do it, or that use welfare
benefits as a wage supplement for private employers who give jobs to
people on welfare, if you do that, you sign them, you send them to me,
and we will approve them within 30 days. Then we will have real welfare
reform even as Congress considers it.
To further support your actions, I am directing the Office of
Management and Budget to approve a change in Federal regulations so that
States can impose tougher sanctions on people who refuse to work. Right
now, when a State reduces someone's welfare check for failing to hold up
their end of the bargain, the person's food stamp benefit goes up. So it
turns out not to be much of a sanction. We're going to change that. If
your welfare check goes down for refusal to work, your food stamp
payment won't go up anymore.
Finally, as another downpayment on our commitment to our partnership
with you on welfare reform, today our administration has reached
agreement on welfare reform experiments for West Virginia, Utah, Texas,
and California. Massachusetts has a sweeping proposal on which agreement
has been reached on every issue but one--as I understand it, we're
getting much closer there. The
[[Page 1348]]
West Virginia proposal helps two-parent families go to work. Utah
provides greater work incentives but tougher sanctions for those who
turn down work. California has adopted the New Jersey system of the
family cap. Texas has a very interesting proposal to require parents on
welfare to prove that their children have been immunized to continue to
draw the benefits.
And I would say, just in response to this, this will now, obviously,
bring us to 32 States, and I think soon to be 33 States, with these
kinds of experiments. We also are announcing food stamps experiments
today as applied for by Delaware and Virginia.
All of these are designed to promote work and responsibility without
being stifled by Washington's one-size-fits-all rule. But I think we
need to accelerate this process. I don't like the so-called Mother-may-I
aspect of the waiver system, either. That's why I say, if you act in
these five areas, under the law you have to file an application for an
experiment, but it will be approved within 30 days.
And I want to identify other areas like this. This Texas
immunization idea is very important. We have lower immunization rates
than any advanced country in the world. We are moving hard at the
national level to make sure that the vaccines are affordable. Texas was
the first State to use national service workers, AmeriCorps volunteers,
in the summer of '93 to immunize over 100,000 children. And since then
they've immunized another 50,000. But if you were to require it of
people on public assistance, it would have a big impact on getting those
numbers up, I believe. So, as we begin to get more information about
this and other things, we will be issuing other reforms that if you just
ask for them, we'll say yes within 30 days. This is very important.
Now, let me be clear. Congress still does need to pass national
legislation. Why? Because I don't think you ought to have to file for
permission every time you do something that we already know has worked
and that other States are doing. Because we do need national child
support standards, time limits, work requirements, and protections for
children. And we do need more national support for child care.
I hope these efforts that I'm announcing today will spur the
Congress to act. But we don't have to wait for them, and we shouldn't.
We can do much more. If every State did the five things that I mentioned
here today, every State, we would change welfare fundamentally and for
the better. And we ought to begin it, and we shouldn't wait for Congress
to pass a law.
There is common ground on welfare. We want something that's good for
children, that's good for the welfare recipients, that's good for the
taxpayers, and that's good for America. We have got to grow the middle
class and shrink the under class in this country. We cannot permit this
country to split apart. We cannot permit these income trends which are
developing to continue. We have to change it. You will not recognize
this country in another generation if we have 50 years, instead of 20
years, in which half of the middle class never gets a raise and most of
the poor people are young folks and their little kids. We have to change
it. And we can do it.
But we have to remember what we're trying to do. We're trying to
make the people on welfare really successful as workers and parents. And
most important, we're trying to make sure this new generation of
children does better.
A few months ago I was down in Dallas, visiting one of our
AmeriCorps projects. And I saw two pictures that illustrate why I think
this issue is so important. One, I was walking with a young woman who
was my tour guide on this project. She was a teen mother, had a child
out of wedlock, thought she had done the wrong thing, went back and got
her GED, and was in the AmeriCorps program because she wanted to work in
this poor community to help them and earn money to go to college. But
the second person I met was the real reason we ought to be working for
welfare reform. I met a young woman who was very well-spoken. She told
me she had just graduated from a university in the Southeast. But she
was working on this anyway, even though she really didn't have to go on
to college anymore. And I said, ``Why are you doing this?'' She said,
``Because I was born into a family of a welfare mother. But I had a
chance to get a good education; I
[[Page 1349]]
got a college degree. And I want these young people to come out like I
did.''
Now, that's the kind of citizen we want in this country. Those are
the kind of people that will turn these disturbing trends around. Those
are the kind of people that will enable us to come together and go
forward into the future.
We owe them that. And we can do it. You and I can do it now.
Congress can do it this year. And every one of us ought to do our part.
Thank you, and God bless you.
Note: The President spoke at 2:45 p.m. at the Sheraton Burlington Hotel.
In his remarks, he referred to Gov. Howard Dean of Vermont, chair, and
Gov. Tommy Thompson of Wisconsin, vice-chair, National Governors'
Association; and Mayor Peter C. Brownell of Burlington, VT.