[Weekly Compilation of Presidential Documents Volume 32, Number 6 (Monday, February 12, 1996)]
[Pages 188-189]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Opening 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-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

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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 lay-offs 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.