1988 Legislative and
Administrative Message: A
To
the Congress of the
Introduction
In
one sentence of 52 words, the Framers of our Constitution announced the proper
ends of government in a free society:
``We
the People of the United States, in Order to form a more perfect Union,
establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the
Blessings of Liberty to ourselves and our Posterity, do ordain and establish
this Constitution for the United States of America.''
The
six purposes listed in the Preamble for establishing the Constitution serve as
a lasting measure of the legitimate role of government. An American President
has no more sacred duty than to ensure that the government stays within the
constitutional limits that protect individual liberty. In assessing this
Administration's policies and proposals now and for the future, the fundamental
blueprint remains the Preamble of the Constitution.
In
the past 7 years, our Administration has worked to restore a vision of government
that was the Founders' own -- a vision of a free and self-reliant people,
taking responsibility for its own welfare and progress through such time-tested
means as individual initiative, neighborhood and community cooperation, and
local and State self-government. The return of responsibility and authority to
the individual American is now leading to a virtual renaissance in
Our
foreign and defense policies are geared to protect American freedom against
external threats, to guarantee that our liberties are secure from the
aggressions of those whose values are not founded in human freedom. Protection
of liberty today means not just a strong
This
statement of Administration policy is organized according to the six basic
tenets for which the American people first ordained and established the
Constitution:
I.
To
Form a more Perfect
II.
To
Establish Justice .... [94]
III.
To
Ensure Domestic Tranquility .... [94]
IV.
To
Provide for the Common Defense .... [91]
V.
To
Promote the General Welfare .... [103]
VI.
To
Secure the Blessings of
I.
To Form a More Perfect
In
setting aside the Articles of Confederation for a new Constitution, the Framers
acknowledged that the governmental deficiencies of the new Nation were of their
own making. They understood that if the American republic were to endure and
prosper, its organizing principles would have to be revised. The constitutional
system the Framers produced has been the wonder of the free world, but after
200 years some aspects of that system are in need of repair and reform.
Accordingly, I propose the following measures to ``form a more perfect
A.
Balanced Budget Amendment
Before
the Great Depression, the idea that the Federal government should balance its
budget on a yearly basis was treated as though it were part of the
Constitution. The economic crisis, and later World War II, forced the
abandonment of this policy. But what may have been necessary in those national
emergencies is now a permanent feature of the Federal government.
There
is no question that continued Federal budget deficits, fueled by higher
spending, are bad for the economy. Unfortunately, our political system makes it
extremely difficult to reduce the deficit. The public interest in spending
restraint is a generalized one, diffused among the entire citizenry. The
special interests favoring spending on any particular program are smaller, but
they fight much harder to maintain or increase spending.
Certainly,
there are constructive proposals that would help control spending. Since 1981,
our budgets have sought billions of dollars in reductions of outdated and
outmoded programs. Members of the Congress and private think tanks have also
identified wasteful spending. But the political process's inability to overcome
inertia, along with the persistence of special interests, has led many
Americans to despair of achieving budgetary balance without constitutional
reform. That is why 32 States have applied to the Congress to call a
constitutional convention for the purpose of proposing a constitutional
amendment to require a balanced budget -- only two States short of the number
required by Article V of the Constitution.
In
previous years, the Senate has approved such a balanced budget amendment that
would obviate such a convention, but the House has failed to support it. This
is clearly the option I prefer to achieve the consitutionally
mandated balanced budget desired by the overwhelming majority of the American
people.
It
is imperative that the Congress consider such an amendment as a major priority
for 1988, and I will be a willing partner in that enterprise.
B.
Budget Process Reform
It
is widely acknowledged, by the Congress, the press, and the American people,
that the current budget process is not working. The Budget Act of 1974 was
purported to streamline and rationalize the budget considerations by the
Congress. The new process was to ``force'' the various committees to consider
their recommendations in the context of the entire budget and ensure that
proper attention was paid to the bottom line -- the deficit.
In
both substance and form, the process has failed. Deadlines are routinely missed
or ignored. Enforcement mechanisms are rarely employed. Debates over the same
issue occur three and four times a year. And from the size of the deficit, the
process has obviously failed to provide fiscal discipline.
Over
the last 7 years, total revenues paid to the Federal government have increased
by over $250 billion. But total expenditures have increased by some $325
billion. Part of the increased spending, $125 billion, or half of the increase
in revenues, was devoted to rebuilding our national defenses. But last year,
the government spent $140 billion more on domestic programs than in 1981 and
$70 billion more on interest payments due to the deficit. And for every dollar
the Congress has cut from my defense request, they have added $2 to domestic
spending.
Nowhere
is the failure of the budget process more evident than in the annual process of
developing the appropriations bills that establish discretionary spending
levels making up just under one-half the total budget. The regular process
requires that 13 separate appropriations bills be sent to the President well in
advance of the October 1 beginning of a new fiscal year. But the norm has been
anything but normal -- during the last 7 years, the Congress sent only 10 of
the 91 required bills on time. In the last 2 years, not one bill has been on
time and all 13 have been collapsed into one massive piece of legislation.
These
increasingly large spending bills, passed at the last moment before existing
funding expires, deny the Congress and the Executive the ability to adequately
examine their contents. The Congress cannot truly vote on their merits and the
President has little ability to employ a veto.
While
Gramm-Rudman-Hollings has helped restore some fiscal discipline, it simply adds
another layer to an already broken process. The threat of across-the-board cuts
is only partially effective as major portions of the budget are exempt. And G -
R - H does not produce what a truly effective budget process should; namely, a
thorough consideration of spending priorities within the constraints of
available revenues. To assist the next administration in attaining the deficit
targets contained in the Gramm-Rudman-Hollings law and achieve a balanced
budget within the next few years, the following changes in the budget process
are proposed:
Joint Budget Resolution. The budget process has
so degenerated in recent years that the Presidential budget is routinely
discarded and the congressional one regularly goes unenforced.
The product of this breakdown is a concurrent resolution, requiring neither
consultation with the Administration nor the signature of the President. As a
remedy, I propose that henceforth the Congress and the Executive collaborate on
a joint resolution that sets out spending priorities within the revenues
available. The requirement of a Presidential signature would force both
branches of government to resolve most policy issues before formulating
appropriations measures. The budget process could be further improved by including
in the budget law allocations by committee as well as by budget function.
Individual Transmittal of Appropriations Bills. The current practice of
transmitting full-year omnibus continuing resolutions oversteps appropriation
committee/subcommittee jurisdictions. More important, it does not permit the
Legislative and Executive branches to exercise proper scrutiny of Federal
spending. Therefore, I propose a requirement that appropriations bills be
transmitted individually to the President.
Strict Observance of Allocations. During the 1980s, an
unacceptable budget practice evolved of disregarding congressionally approved
function allocations. Funds regularly were shifted from defense or
international affairs to domestic spending. I strongly urge that each fiscal
year separate defense and non-defense allocations be made and enforced through
a point-of-order provision in the budget act.
Enhanced Rescission Authority. Under current law, the
President may propose rescissions of budget authority, but both houses of
Congress must act ``favorably'' for the rescission to take effect. The Supreme
Court in the Chadha decision (1983) effectively moots
even this limited authority. I propose a change of law that would cure the
legislative veto defect and require the Congress to vote ``up or down'' on any Presidentially proposed
rescission, thereby preventing the Congress from simply ignoring the rescission
or avoiding a recorded vote.
Adopt
Biennial Budgeting. The current budget process consumes too much time and
energy. A 2-year budget cycle offers several advantages -- among them, a
reduction in repetitive annual budget tasks, more time for congressional
oversight and consideration of key spending decisions in reconciliation, and
fewer gimmicks, such as shifting spending from one year to the next. I am
calling on the Congress to adopt biennial budgeting, beginning with a trial
2-year Defense budget.
Truth in Federal Spending Legislation. As part of my Economic
Bill of Rights proposal, I outlined legislation that provides for ``Truth in
Federal Spending.'' Soon I will transmit legislation that will require any
future legislation creating new Federal programs to be deficit-neutral; this
will be done by requiring the concurrent enactment of equal amounts of program
reductions or revenue increases. Additionally, my proposed legislation would
require that all future legislation and implementing regulations be accompanied
by financial impact statements detailing the measure's likely economic impact,
including the effect on State and local governments. Enactment of this proposal
would be an important step toward reassuring the American people that the
Congress is serious about controlling government spending.
C.
Line Item Veto
A
President should have the same tools to control spending that 43 governors
have. I will forward my proposal for a line item veto. It would allow future
Presidents to remove from spending bills those items that are extraneous --
without threatening the continuation of vital government programs. The Congress
could override each veto by a two-thirds vote in each House. The budget crisis,
however, also demands immediate action. For example, last month the Congress
presented me with a catchall spending bill with many extraneous and costly
provisions, some of which had been considered for the first time in conference.
I am asking the Congress immediately to accept the responsibility for making
its own processes work, rather than giving up and resorting to a continuing resolution.
D.
Super-Majority Tax Amendment
Our
Founding Fathers knew that without economic freedom there can be no political
freedom. Even before our Nation was full-born, nine colonies assembled in a
``Stamp Act Congress'' and worked their will to oppose taxation without
representation. Today, we must once again resolve to put an end to
irresponsible taxation and spending. We have fallen into a costly and dangerous
habit, which could threaten our future prosperity, burden future generations,
and reduce the incentive of individuals and businesses to create more goods and
services.
It
is clear that we need a mechanism to control expenditures of Americans'
hard-earned money. To this end, I will send to the Congress a proposed
constitutional amendment to require a super-majority vote in the Congress in
order to increase the tax burden on our citizens. I urge the Congress to act
expeditiously in approving this amendment and to send it to the States for
ratification.
E.
Federalism -- Returning Power to the People
At
the time of my first State of the Union address, it was apparent that the
limited national government envisioned by the Framers had been replaced by a
national government whose involvement in domestic affairs was limited only by
its own will. The Founders understood that unchecked central authority
threatens individual liberties. Accordingly, they constituted a Federal system
of government, with all powers not specifically granted by the Constitution to
the national government reserved to the States and to the people.
We
have sought to revitalize the principle of federalism by reforming the
institutional processes of the national government. This past October, I signed
Executive Order 12612, which requires Executive officials to ensure that all
proposed policies and legislation comply with federalism principles and to
conduct a formal federalism assessment as appropriate, and which restricts
Federal preemption of State laws. The Congress should review its legislative
procedures to determine whether reforms similar to those in Executive Order
12612 are warranted.
The
National Governors Association and the Advisory Commission on Intergovernmental
Relations, as well as State and local officials, have been examining possible
amendments to the Constitution that would restore the structural balance of
power between the national government and the States. If we in
II.
To Establish Justice
For
200 years our Republic has enjoyed a constitutional system that is the envy of
the world. By its own terms and by the will of the American people, the
Constitution is the supreme law of the land. Yet in recent years, some have
advocated and at times have succeeded in promoting a laxity in the observance
of the terms of its text. Fortunately, I can count as one of the most
satisfying legacies of my presidency the work my Administration has done to
restore the foundations of American government through an insistence on the
faithful interpretation and observance of the Constitution.
A.
Judicial Appointments
In
the elections of 1980 and 1984, I promised the American people that I would
nominate judges and justices to the Supreme Court who would be faithful to the
Constitution. I have kept that promise.
Our
written Constitution, adopted and ratified by the people 200 years ago and
amended several times since, is our fundamental law. Every government official
takes an oath to abide by its provisions. For members of the Congress, this
should mean enacting laws only in pursuance of the powers set forth in the
Constitution. As President, this means taking care that the laws are faithfully
executed. To the courts falls the task of adjudicating cases or controversies
according to the Constitution and the laws made under it. In so doing, judges
must faithfully interpret the text of the Constitution, as well as laws passed
by the Congress, as written, in accordance with their original meaning. To do
otherwise would constitute a usurpation of legislative power never intended by
the American people. With this in mind, I have been careful to nominate only
judges faithful to this principle. I urge the Senate to be guided by the same
standards in exercising its constitutional duty in the confirmation process.
Part
of faithfully interpreting the law is seeing to it that those convicted of
crimes are dealt with fairly but firmly. In this respect, I am particularly
proud of my judicial appointments. Federal court records indicate that between
1981, when I first took office, and 1984, the average sentence handed down by a
Federal court per conviction increased dramatically -- by over 100 percent for
rape, over 100 percent for burglary, and over 60 percent for murder. I will
continue to nominate judges who are tough on crime. When the Senate adjourned
last year, 27 judicial nominations were left pending -- an unprecedented number
-- and other vacancies are yet to be filled as well. The Chief Justice of the
B.
Civil Rights
Among
the greatest imperatives in establishing justice is the elimination of
discrimination based on race, sex, and other immutable characteristics.
Discrimination based on religion is equally invidious. This Administration has
held high the banner of equal opportunity for all Americans, and we will not
retreat from the fight against discrimination wherever it exists.
Our
achievements have been significant. We have successfully prosecuted racial hate
groups and have achieved more convictions for criminal civil rights violations
than any previous administration. We have moved aggressively to enforce our
Nation's voting rights laws, thereby securing for thousands of citizens the
most fundamental of all rights -- the right to help shape their future with a
ballot.
In
desegregating our Nation's public schools, we have placed the emphasis where it
should be -- on enhancing educational quality for all children.
I
am particularly proud of our successes in moving
Currently
pending in the Senate, however, is a bill whose vague and sweeping language
threatens to subject nearly every facet of American life -- from the corner
grocery to the local church or synagogue to local and State government -- to
intrusive regulation by Federal agencies and courts. Ironically it does so in
the name of civil rights. This Administration opposes this overreaching
legislation known as the Civil Rights Restoration Act of 1987 (S. 557). In its
stead, I have proposed a bill that provides institution-wide coverage under the
appropriate civil rights statutes of educational institutions receiving Federal
aid while avoiding an unwarranted expansion of Federal jurisdiction. My
proposal, the Civil Rights Act Amendments of 1987 (H.R. 1881), also ensures
adequate protection of religious tenets under Title IX and makes clear that no
institution must provide insurance coverage for abortions or perform abortions
as a condition of the receipt of Federal aid.
C.
Protection of Victims of Obscenity and Child Pornography
In
establishing justice we must be ever mindful that our cherished constitutional
freedoms cannot be distorted to protect activities that exploit the innocent
and defenseless. The production and distribution of obscene materials, as well
as child pornography, are such activities. Our Administration has made the
elimination of these materials a top domestic priority.
The
Attorney General's Commission on Pornography report has resulted in several new
law enforcement efforts, foremost among these being the establishment of a
special enforcement unit within the Department of Justice. In a single
operation in 1987 more purveyors of child pornography were federally indicted
than at any time in history, and the first Federal obscenity racketeering
convictions were recently returned in
D.
Legal Services for the Needy
Provision
of needed legal services for those who cannot afford them is an important goal
of our society. Unfortunately, the current system administered by the Legal
Services Corporation (LSC) is not working. Each year the
Congress has mandated that a large portion of these funds be allotted to a
group of ``National and
There
is another way in which the needy are being badly served by LSC. A
congressionally mandated policy of ``Annual Presumptive Funding'' precludes the
possibility of awarding LSC grants on a competitive basis. LSC must be able to
demand results from grantees or give other prospective grantees opportunity
better to serve the poor. While stability is desirable, we must be able to weed
out inefficient or incapable grantees.
III.
To Ensure Domestic Tranquillity
The
leading threat to domestic tranquillity comes in the
form of criminal offenses of citizen against citizen. When I took office crime
rates were soaring. The public, with good reason, felt unsafe in our streets
and often even in homes and places of work. Determined to give
A.
Restoration of the Federal Death Penalty
Federal
statutes currently provide for capital punishment for the offenses of
espionage, treason, murder, and certain other felonies such as air piracy.
Except in the case of the air piracy statute, enacted in 1973, these death
penalty provisions are not accompanied by appropriate procedures required since
the Supreme Court's 1972 decision in Furman v.
Fortunately
a solution is at hand. The Comprehensive Crime Control Act of 1984 created the
United States Sentencing Commission to promulgate sentencing guidelines to
insure consistent, tough, and equitable sentencing. The Commission should go
forward now to set in place procedures to permit the constitutional imposition
of capital sentences for the most serious Federal offenses.
B.
Criminal Justice Reform Act
To
protect further society from criminals, the Congress should act promptly on the
Criminal Justice Reform Act, which I transmitted last year. By statute it would
establish uniform procedures that would allow death penalty provisions in
current Federal statutes to be enforced according to recent Supreme Court
decisions. It also contains important reforms to curb the abuse of habeas
corpus by convicted criminals and to promote truth in the courtroom by ensuring
that evidence obtained by the police through reasonable searches and seizures
can be used at trial. These important protections for the public will complete
the anti-crime effort we began with the Comprehensive Crime Control Act of
1984. They were approved by the Senate in 1984 and in part by the House of
Representatives in 1986. The time has come -- this year -- to enact them into
law.
C.
Victims of Crime
In
1982 my Task Force on Victims of Crime pointed out that all too often crime
victims suffer doubly -- they are first victimized by criminals and then by an
inadequate justice system. My Administration has put into effect a number of
the Task Force recommendations. The most important of these has been the
development of model legislation mandating the protection and fair treatment of
crime victims, which by 1986 had become the basis for legislative action in nearly
two-thirds of the States. I am directing the Attorney General to press forward
on the remaining Task Force recommendations.
D.
The Fight Against Terrorism
Innocent
Americans and freedom-loving people across the world have become the victims of
terrorists. But this Nation will not be held captive to the will and whim of
terrorists.
This
Administration is considering a series of legislative proposals designed to
strengthen our hand against terrorists. These include proposals for the
expeditious removal of aliens from the
State-sponsored terrorism, fomented by
governments whose conduct and support for such acts put them outside the
community of nations, remains a scourge on the international scene and a
particular threat to our citizens and interests. We must further develop
the rule of law against these criminals by denying terrorists the legitimacy of
international instruments condoning their activities. The Senate should give
its advice and consent to ratification, with certain reservations, of
Additional Protocol II to the 1949 Geneva Conventions, which would serve to
promote basic human rights. The Administration has rejected Additional Protocol
I, which would give combatant status to terrorist organizations, and I welcome
congressional support of this decision.
E.
Organized Crime
For
over a half-century this Nation has been plagued by organized crime. Due to
vigorous efforts by Federal investigators and prosecutors, some of the most
infamous leaders of organized crime are now facing long jail terms. This
progress has come through a new strategy aimed at penetrating crime syndicates
and targeting their leadership for prosecution. Strike forces have focused on
several major cities such as
Yet,
mob-run crime is still a grave problem. Obscenity, extortion, drug importation
and sales, loan sharking, illegal gambling, and murder are all crimes that we
intend to hit hard during the remainder of this Administration. Our goal is to
put ``the mob'' out of business through vigorous use of both criminal and civil
statutes, by purging organized crime elements from labor organizations, and by
targeting the newer, ``emerging'' organized crime groups to ensure that they
never wield the mob's power and influence.
F.
Prison Capacity Expansion
One
result of our increased efforts to fight crime is that the number of criminals
serving time in Federal prisons has increased dramatically -- nearly 80 percent
since 1981. We anticipate that the Federal inmate population will continue to
increase in the future, particularly in light of the enhanced criminal
penalties contained in the Anti-Drug Abuse Act of 1986 and the new sentencing
guidelines. One of my top priorities for the next year will be to increase
substantially the construction of new prison space to accommodate the increased
number of criminals being removed from our streets.
G.
Drug Free
In
the past 7 years, the Nation has made tremendous gains towards a drug free
We
are on our way to a drug free future. Still, illegal drugs continue to destroy
the lives and the hopes of hundreds of thousands of Americans each year,
especially young people whose future lies before them. Since the beginning of
my Administration, I have committed the Federal government to provide national
leadership and support to the national crusade, encouraging and assisting
private sector efforts and aggressively pursuing Federal responsibilities to
stop the supply and use of illegal drugs. The National Drug Policy Board, which
I established by Executive order on
Five
strategies are aimed at reducing the supply of illegal drugs: enhanced
international cooperation; stepped-up interdiction of drugs coming into the
country; improved intelligence on drug activities; stepped-up investigations to
eliminate drug trafficking organizations; and targeting prosecution of top drug
organizations. Simply put, we are working with our allies throughout the world
to reduce the amount of illegal drugs produced or processed; making sure that
as little as possible of those illicit drugs enter this Nation; and Federal,
State, and local officials are working together to investigate and prosecute to
the fullest these merchants of destruction.
And
we are working to reduce the demand for drugs. Nancy and I join the millions of
parents across the country who know too well that real
progress toward the goal of a drug free
Our
four strategies to reduce demand are: prevention education to keep young people
from becoming drug users; reduction of drug use by high-risk youths; improved
community-based treatment for addicts whose drug habits have removed them from
the American mainstream; and fostering attitudes of intolerance toward drug use
on the part of mainstream adults.
Every
American should be able to enjoy a drug free workplace. Schoolchildren should
have drug free schools. Every citizen should be able to rely on a Federal work
force free from drugs. And every American should be able to enjoy a drug free
transportation system. This Administration is working in partnership with
private employers and State and local governments to ensure all four.
We
are proceeding with a cooperative national effort to reduce and eventually
eliminate drugs from government housing projects. The Department of Education
issued Schools Without Drugs and has mobilized school,
parent, and community efforts to take drugs away from young people and give
them back their lives.
These
efforts have already begun to produce results. In 1987, for the first time
since the National Institute on Drug Abuse began its annual survey of high
school seniors in the early 1970s, a significant drop -- one-third -- in
current cocaine use was revealed. Ninety-seven percent of the seniors polled
disapproved of regular cocaine use, and 87 percent disapproved of even trying
it -- strong evidence that cocaine use is no longer ``in'' among young
Americans.
Finally,
as the Nation's largest employer, the Federal government is committed to establishing
a model for a drug free workplace that deals constructively with illegal drug
use. We are establishing a broad drug education training program for all
employees. The program includes testing of employees holding safety-sensitive
positions. For example, the Department of Transportation has already
implemented drug-testing programs for employees in such positions, including
air-traffic controllers and airline safety inspectors. Indeed, fair and
accurate drug testing is one of the few effective ways to ensure that illegal
drug users begin the process of rehabilitation. Agency programs that include
random testing to identify these drug users will be ready for implementation in
1988. We are putting our money where our heart is. In the past 7 years, there
has been a three-fold increase in Federal spending to fight drugs, bringing the
total close to $3.5 billion this year.
I
worked closely with the Congress to enact the Anti-Drug Abuse Act of 1986,
which embodies a national commitment to fight drug abuse through: increased
criminal penalties, improved criminal investigation and prosecution, demand
reduction, better international cooperation, and more effective interdiction.
The Act also established the White House Conference for a Drug Free America. Already
it has hosted six regional forums to facilitate information gathering and
interchange on various aspects of the drug issue. The Conference will hold a
national assembly in
IV.
To Provide for the Common Defense
Our
government has no higher duty than defense of the freedom of the American
people. On this point, Alexander Hamilton and James Madison, two of the most
eminent Framers of our Constitution, were in complete agreement. Wrote
Alexander Hamilton in The Federalist, ``The
circumstances which endanger the safety of nations are infinite, and for this
reason no constitutional shackles can wisely be imposed on the power to which
the care of it is committed.'' James Madison concurred, ``The
means of security can only be regulated by the means and the danger of
attack.''
In
our constitutional framework, the President and the Congress share the vital
responsibility for ensuring our national security. Within this same
constitutional framework, however, the President has important independent
powers. Both of these constitutional principles apply to the agenda of national
security issues we will face in 1988 and beyond.
Our
two branches of government clearly share powers in such areas as planning and
budgeting for the maintenance of our defense capability; the ratification of
treaties, as in the case of the INF Treaty; and foreign economic and security
assistance, that vital instrument of our foreign policy. At the same time, the
Congress must respect the constitutional wisdom that only the President can act
as the effective Executive agent in the conduct of foreign relations. This
truth is long established in our constitutional law and practice. And the
President, in order to act effectively in the Nation's behalf, needs the
flexibility to respond, within the framework of law, to often unpredictable and
fast-moving challenges.
In
1980, I promised as my first priority to rebuild our national defenses to meet
the Soviet military challenge and to restore
A.
East-West Relations
On
the basis of our renewed strength, and a policy of realism in the pursuit of
peace, we have in the past 7 years taken great strides toward a world in which
freedom can flourish. In the coming year, we face new challenges and new
opportunities, and I hope that the Congress will be my partner in addressing
both.
Today
I have submitted to the Senate for its advice and consent to ratification the
Treaty Between the United States of America and the
On
the basis of similar strength and fortitude, and support from the American
people and the Congress, we are engaged in serious negotiations with the
These
accomplishments depend on maintaining our strength. It should now be
unmistakably clear that our determined program to rebuild our military strength
and my Strategic Defense Initiative have spurred major advances in arms
reduction, as well as strengthening our own and allied security. These efforts
must not be undercut.
In
addition, I must reiterate what I said last year -- that legislating Soviet
arms control positions into American law is not the way to get good agreements.
I will veto legislation that undermines national security and undercuts our
negotiating position.
The
issue between East and West, of course, is not simply arms control. Efforts by
the
Human
rights and regional conflicts are key issues on my agenda with the
B.
Defense Budget
Our
defense budget proposals represent an essential program for maintaining our
defensive strength. The defense budget has already been reduced to levels that
will require us to delay the achievement of important defense objectives.
Anything less will jeopardize not only our national security and that of our
allies but also the prospects for fair agreements negotiated with our
adversaries.
With
this in mind we must continue with the Strategic Modernization Program as an
essential guarantor of Free World security at the same time as we seek
clear-cut and effectively verifiable strategic arms reductions. We must also
continue the modernization of nuclear, conventional, and chemical deterrence
forces supporting our commitments to our allies. Additionally, we must ensure
that the conventional force disparities between NATO and the Warsaw Pact are
redressed through a combination of negotiated reductions and the strengthening
of NATO capabilities.
My
Strategic Defense Initiative (SDI) is not simply a program of research and
development of new technology. It offers hope of a reorientation of strategy --
hope for a world in which strategic defenses, which threaten no one and can
block a ballistic-missile attack, play a greater role in maintaining
deterrence. This is a vital program. It is an investment in a safer world for
our children, and it is insurance against violations of arms reduction agreements.
It reinforces our negotiating efforts. I will ask the Congress to provide
increases in funding necessary for essential SDI research, development, and
testing. It is a cornerstone of our security strategy for the 1990s and beyond.
And when it is ready, we will deploy it.
Despite
reductions in defense funding, we must attempt to maintain the strength of our
technology base, pursuing new developments in conventional weapons technology.
We must also continue our Armaments Cooperation initiatives with our allies to
realize improvement in acquisition management and the advantages of shared
technological advances among our allies.
We
will maintain, where necessary, the deployment of
We
must continue to develop and to exercise our capabilities to respond to
low-intensity conflict. These simmering confrontations below the threshold of
large-scale conventional war undermine the political, economic, and security
interests of the
We
must complete the revitalization of our special operations capability begun
early in this Administration and preserve that capability in the ensuing years.
Similarly,
we need a vital and effective intelligence capability. We must ensure that this
capability is effectively managed and that the President has the ability to
employ it flexibly. I will not accept legislation governing the conduct of
intelligence activities that does not preserve the flexibility that is required
if our intelligence community is to do its job. To improve the military
intelligence support to
As
we address the resource requirements for our defense efforts, we must also
streamline the process of resource allocation. For this reason, I urge the
Congress to shift fully to a 2-year defense authorization and appropriation
cycle. This Administration continues to press initiatives that streamline and
strengthen the Federal procurement process to dramatically increase competition
in the award of Federal contracts. We are placing particular emphasis on the
findings of the Blue Ribbon Commission on Defense Management (The Packard
Commission) and especially those recommendations having government-wide effect.
C.
Democracy and Freedom
Most
remarkable is the struggle of those directly resisting aggression sponsored by
the
I
strongly support the cause of the brave Freedom Fighters of Nicaragua. On this
issue there have been differences between the Executive branch and the
Congress, but there are also shared principles: that there must not be a Cuban
or a Soviet-bloc military base in Nicaragua, because such a base would threaten
the United States and the other nations in the Hemisphere; that Nicaragua must
not pose a military threat to its neighbors or provide a staging ground for
subversion or destabilization; and that Nicaragua must respect the basic
freedoms and human rights of its own people, including the original pledges the
Sandinista regime made to the Organization of American States in 1979.
It
is now widely accepted that democracy within
At
the San Jose Summit there was a clear consensus among the four Central American
democratic presidents that the Sandinistas had not complied with the Peace
Accord. By making his last-minute promises President Ortega acknowledged the
accuracy of that judgment.
The
key issue is whether the Sandinistas are now committed to genuine and enduring
democracy or do they just seek the elimination of the Nicaraguan Democratic
Resistance.
The
Nicaraguan Democratic Resistance is the best insurance policy for keeping the
peace process on track and producing a democratic outcome in
In
We
support a peaceful solution, but such a solution can be achieved only if the
We
shall continue our policy in the
At
the same time, we will work actively to promote peace between
The
cause of democracy and freedom worldwide is promoted by our program of economic
and security assistance to our allies and friends. Central to our security and
to the preservation of peace are our ties with allies and friends, including
NATO and our East Asian allies --
Since
the enactment of comprehensive reform of our Nation's immigration laws in the
fall of 1986, the flow of illegal aliens across our southern border has been
reduced significantly. Our Nation continues to provide open avenues of legal
immigration that each year allow 600,000 people to join our ranks as permanent
residents. As in the past, a significant portion of these new arrivals are
individuals seeking refuge from oppression in their home countries. I am
pleased to report the Department of Justice has taken two important steps
toward fairer, more expeditious consideration of the asylum applications of
persons suffering persecution because of their religious and political beliefs.
An Asylum Policy and Review Unit, charged with reviewing asylum cases, has been created directly within the Department. In
addition, a change has been proposed in the Immigration and Naturalization
Service that would give specially trained Asylum Officers jurisdiction to
interview applicants and render decisions, while preserving for each applicant
an opportunity for a new hearing before an independent immigration judge. Our
Administration is also studying a further restructuring of the asylum process
to ensure that asylum and refugee cases are considered from a humanitarian
perspective.
As
General Vessey's visit last summer to
D.
The Economic Dimension of Freedom
We
remain active in promoting free economic institutions in the developing world.
In this connection, the Administration strongly supports the intent of the
Caribbean Basin Economic Recovery Expansion Act, which would extend the
Caribbean Basin Initiative (CBI) for an additional 12-year period and enhance
the program's duty preferences. While not supporting every specific provision
in the bill, such as the one concerning sugar, the Administration shares the
goal of strengthening the CBI and is proposing modifications and alternatives
to reach that goal. In addition, the Senate should give its advice and consent
to the ratification of the Bermuda Tax Treaty, and the Congress should enact
the complementary tax law changes. These actions would help regularize our
economic ties with this strategically important island.
The
To
meet future oil supply disruptions that might develop, it is important that
additional oil reserves be placed in the Strategic Petroleum Reserve to meet
our 750-million-barrel target. In the section ``Strengthening America's Energy
Security,'' which follows, I outline several steps that will strengthen
I
am proud that our Administration has instituted an effective and prudent system
of safeguarding our strategic interests in East-West trade. We cannot let our
adversaries acquire through trade vital technology that would strengthen their
military capability against us. At the same time we are determined to harmonize
trade control practices with friends and allies both to enhance their
effectiveness and to avoid undermining the competitive position of
V.
To Promote the General Welfare
As
James Madison observed in The Federalist, No. 41, the meaning of the ``general
welfare'' is restricted to that public happiness which the government may
promote by its clearly enumerated powers. Permitting general and unlimited
powers to government, even though these might be used with the best motives,
would render the Constitution useless as a safeguard for individual freedom.
This
Administration is deeply committed to decreasing the power of the Federal
government to its intended scope and to increasing the power of individuals.
These policies establish conditions most conducive to individual initiative and
enterprise and, consequently, to the creation of wealth and public well-being.
The preservation of freedom, the highest value in our Republic, requires
placing the rights of individuals above the power of government. The great
challenge of our national government is to use only its carefully enumerated
powers in promoting the general welfare by empowering individuals to help themselves.
A.
Empowering Individuals To Control Their Own Resources
If
individuals are to possess genuine autonomy then they must be free to control
their own resources, to enjoy the fruits of their labor, and to keep what they
earn, free from excessive government taxation and spending. To further this
ideal, I propose the following six specifics:
1.
Tax Policy. Experience has shown that higher taxes ultimately fuel higher
spending and do not improve the deficit. During the past 7 years, tax revenues
generally have increased, but spending has still increased 27 percent more than
tax revenues. This is the true source of the deficit.
Those
who favor higher taxes ignore the impact of such taxes on the economy. By
reducing and reforming taxes we have seen unprecedented economic growth, high
rates of job creation, and increasing productivity for over 60 months. During
this period of time, the Administration has lowered income tax rates and
removed the automatic tax increases caused by inflation. Future tax policy must
preserve these and other gains made on behalf of the American taxpayer. Tax
increases should also be opposed on the basis of their burden on economic
growth. These include, but are not limited to, returning to higher marginal
rates for individuals or corporations; repealing indexing; creating a
value-added tax or increasing excise taxes; increasing taxes on capital or
energy sources; and levying new taxes on securities transfers or corporate
takeovers.
2.
Reduction of Capital Gains Tax Rate. The tax reforms accomplished in 1986 did
much to remove provisions that inhibit economic prosperity. The most important
piece of unfinished business is to reduce the capital gains tax rate to the
level that will generate the savings and investment necessary for future
economic growth.
Past
experience demonstrates that lowering the capital gains tax rate will mean
increased realizations of capital gains upon which taxes are paid. When capital
gains tax rates increase, investors tend to hold rather than sell their assets.
If investors hold their assets until death, they can pass their untaxed gains
on to their children, resulting in no income taxes paid on those gains. When
the capital gains tax rate was increased in 1969, for example, it led to an
immediate reduction in the amount of capital gains realized. By contrast, a
reduction in the capital gains tax rate in 1978 and again in 1981 led to
significant increases in capital gains realizations.
Reducing
the capital gains tax rate to an agreed-upon optimum should be a cornerstone of
tax reform for the 1990s. I will consult with the Congress about achieving this
rate reduction as soon as possible.
3.
Raise Revenues with User Fees. The burden of reducing the deficit must not be
allowed to hamper the productive element of society -- the private sector.
Raising new revenues must be confined to areas where they will not burden
productivity. I believe that user fees for services are a sensible alternative
to a policy where revenues are unrelated to expenditures, where some citizens
are singled out for gain while others are excluded. Additionally, user fees
promote efficiency by encouraging individuals to use the proper level of
government services.
4.
Spending Restraint. We all recognize that reducing the size of the Federal
deficit is a top priority. The 2-year budget agreement that the Congress and I
worked out last fall is a first step. But we must go further and reduce the
size and the cost of the Federal government. I will apply the following
principles in considering new appropriations and authorization legislation,
which I urge the Congress also to follow: eliminate pork-barrel spending that
uses national funds to benefit local interests; work toward subsidy-free
business and agriculture marketing; avoid creation of new entitlement programs
and additional cost-of-living increase provisions; direct public assistance to
the needy; and provide for necessary discretion to promote efficient
administration of Federal programs. Moreover, the Congress should avoid
attaching appendages to spending bills that authorize unnecessary programs and
go beyond the enumerated powers of the national government.
5.
Government Management Improvements -- Government of the Future. When I became
President, one of my earliest priorities was to try to reestablish the proper
relationship between the Federal government (which had grown much too large and
too powerful) and the State and local governments; and between government and
the private sector. In 1981, through our federalism and deregulation
initiatives, we placed greater responsibility at the State and local level and
in the private sector. We are continuing those efforts.
But
as we look forward to the beginning of the 21st century, we need to update our
perspective on the proper role of the Federal government and examine what needs
to be done to prepare for the changes that will take place. For example, we
expect the population to grow to over 268 million people. Changes in technology
and communication will link the world's economies, trade, capital flows, and
travel as never before. I have asked the Office of Domestic Affairs to work
with the President's Council on Management Improvement to conduct an in-depth
review and recommend to me by August what further adjustments have to be made
in the Federal role to prepare for these anticipated changes. This summer I
look forward to receiving their report, ``Government of the Future,'' which
will also incorporate plans of my ``Reform '88'' program.
Meanwhile,
those responsibilities that legitimately fall within the enumerated powers of
the Executive branch should be managed to deliver quality service to all of our
citizens. Our government has a major effect upon the daily lives of all of us
through the direct delivery of services, the payment of financial assistance
through various entitlement programs, the collection of taxes and fees, and
through regulating commercial enterprises. My 1988 management priorities will
be to complete the ``Reform '88'' management improvement program I started 6
years ago; to overhaul the administrative, financial, and credit systems in our
Federal government; to implement productivity and quality plans in each agency;
and to direct the Office of Personnel Management to examine the needs of the
Federal work force of the future.
My
goal, therefore, is to ensure that my Administration leaves a ``legacy'' of
good management of today's problems -- with plans in place to handle tomorrow's
challenges.
6.
Social Security Reports to Participants. Virtually all workers are required to
participate in the social security system. But the average worker does not know
the level of benefits that would be paid his family should he die, become
disabled, or retire. As a result he cannot make plans for any supplemental
benefits and insurance he may need.
I
am pleased to announce that before the year is over the Social Security
Administration will begin providing upon request reports similar to those
frequently provided to employees who receive private sector benefits. The
social security report will contain a clear and detailed statement that
outlines a participant's credited earnings and social security taxes for each
year; indicates his current eligibility status; and sets forth an estimate in
current dollars of the current and future benefits available to him.
B.
Freeing the Individual From Government Dependency
It
is a fact of American life that many Federal programs, while attempting to help
the poor, have made them more dependent on the government. Much is within our
reach to help dependent citizens lift themselves to self-sufficiency:
1.
Reducing Welfare Dependency Through
Last year I launched a major effort to encourage
the States, working with established community self-help groups, to undertake a
wide range of ``workfare'' and other responsibility-building reform
experiments.
Experience has clearly shown that it is in the States that real welfare reform
will occur. This was true back in the 1970s in
Last
August I endorsed H.R. 3200/S. 1655, legislation that represents a constructive
and fiscally responsible approach to reducing welfare dependency. This
legislation would help more people become self-sufficient through mandatory
participation requirements and a flexible work and training program. It would
strengthen our ability to require absent parents to support their children. It
also contains the broad waiver authority States need to implement their own
ideas and make the welfare system more responsible to the needs of each
particular State. I call on the Congress to enact this legislation and not use
the present consensus on the need to reform our welfare system as an
opportunity simply to expand the benefit levels, which would lead to increased
dependency.
Even
under the limited authority of current law, many States have undertaken or are
planning such experiments. To assist them I have established the Interagency
Low Income Opportunity Advisory Board to facilitate ``one-stop shopping'' for
the States as they deal with the Federal government and to advise my Cabinet on
the impact of the State proposals on the Federal welfare system.
Recently
this Board facilitated multi-program waivers of Federal programs to the States
of Wisconsin and
2.
Removing Barriers to Home Ownership. Historically our freedom has been
symbolized by the opportunity for every American family to own and occupy
housing. The success of our economic recovery program has caused inflation and
mortgage interest rates to decline, making it easier for more Americans to buy
homes. To make housing even more affordable, this Administration is working
with home builders and local officials to overcome government delays and cost-adding
regulations. I am also pleased that the recently passed housing bill granted
permanent authority for the FHA mortgage insurance program that increases the
availability of credit to American home buyers. The bill also accepts my
recommendations for extending the availability of rental housing vouchers to
rural as well as urban areas. These vouchers will give meaningful choice to the
individuals intended to be beneficiaries of housing programs. Moreover, the
bill endorses the concept of tenant ownership of public housing. In order fully
to empower occupants of public housing to own their own homes, I will be acting
on the recommendations of the President's Commission on Privatization to
develop a proposal to sell at a discount existing public housing to the current
occupants, thus mirroring the success this approach has enjoyed in
3.
Strengthening the Family. It is one of our country's most basic principles --
where there are strong families, the freedom of the individual expands. The strength
and stability of the American family provide essential armor for individuals in
the fight against poverty. Only a few years ago, the American household of
persons related by blood, marriage, or adoption -- the traditional definition
of the family -- seemed in peril.
I
have sought to further policies that recognize the importance of a stable
family life. For example, the tax reforms of 1986 contributed to family
stability by increasing personal exemptions. Last fall I issued an Executive
order on the Family requiring that every department and agency review its
proposed activities in light of seven standards designed to promote and not
harm the family. The Offices of Management and Budget and Policy Development
are charged with the responsibility of reviewing future Executive branch
activity to ensure that it meets these standards. In addition, the Congress
should require a statement that determines the impact legislation will have on
the American family.
In
March, I will receive a report from the Office of Policy Development on the
impact of existing policies and regulations on the family. At that time I will
take administrative action and propose legislation necessary to correct
policies that do not conform to the family criteria.
4.
Strengthening Communities Through Enterprise Zones.
Despite the economic prosperity enjoyed by most of the Nation, some regions
remain economically depressed. The key to revitalizing these areas is not new
or expanded government programs, but free enterprise. In 1981, I proposed the
creation of enterprise zones in which economically depressed areas could
receive tax and regulatory relief in order to expand private economic activity
and opportunity within the zones and create jobs in the process.
More
than half the States have set up their own enterprise zones, even without
Federal incentives. These zones have created new jobs and spurred billions of
dollars in capital investment. Their success is testimony to the power of this
concept and is just a small indication of how much could be accomplished if
Federal incentives were added to those of States and localities. Adding Federal
incentives would make existing zones far more economically attractive and
successful and would also encourage more State and local zones. Accordingly, I
am renewing my call to the Congress to take up effective Federal enterprise
zone legislation that will complement the State programs.
5.
In
1983, the National Commission on Excellence in Education launched a national
renaissance in education by identifying problem areas and suggesting solutions
for State and local programs. In its ground-breaking report, A Nation At Risk, the Commission recommended that the States and
localities return to the basics in curriculum and strengthen high school
graduation requirements. Additionally, my Administration urged the States and
localities to consider merit pay and competency testing to improve the
abilities of educators. As a result of the Commission's and our efforts, some
school systems began to turn away from a smorgasbord curriculum and toward a
more structured, traditional program designed to educate good citizens and to
enable all students to participate in the opportunities our society offers in
abundance. But despite this progress, we still have a long way to go. For
example, only 5 percent of American 17-year-olds have advanced reading skills;
an average high school student takes only 1.4 years of history. In April the
Department of Education will complete its review of progress made since the
issuance of A Nation at Risk.
Last
month the Secretary of Education unveiled a model curriculum in a report
entitled
In
addition to ``back to basics'' reforms, American education would benefit from
greater parental involvement. In July 1987, as part of my Economic Bill of
Rights, I stated that we must recognize the right of parents to have their
children educated, publicly or privately, without unreasonable regulation or
interference from State or Federal governments. To that end, I am establishing
a working group in the Domestic Policy Council that will examine the parental
role in education and make recommendations for strengthening parents' rights.
Improving
choice in education continues to be an important goal of this Administration.
Study after study has found that when parents have a say and are involved in
their children's education, the children do better in school. For example, the
Congress should authorize a program of giving parents a choice of schools when
providing Federal funds to benefit students.
I
will continue to encourage efforts to advance parental choice through expansion
of the magnet schools program, as well as in the compensatory education
programs financed through Chapter 1 of the Education Consolidation and
Improvement Act. Compensatory education programs provide additional services to
children most in need of extra help in mastering basic skills. Enhancing
parental choice is particularly critical in the education of disadvantaged
children, who are the focus of the Chapter 1 program.
But
I do not intend to stop there. Polls show that millions of Americans would
like, but do not have, the ability of choosing the education program and
institution that is best for their children. A voucher system at the State
level would empower parents. I will ask the Department of Education to develop
model voucher legislation and make it available to the 50 States, so that they
can implement programs that promote choice in education.
A
college education is part of training for tomorrow's challenges. However, since
1980 the cost of a college education has risen more than twice as fast as the
Consumer Price Index, and many Americans are wondering whether their children
will ever be able to go to college. Colleges set tuition, not the Federal
government. It is my hope that our Nation's universities will act to reduce the
cost of higher education without sacrificing quality in core fields. To help
college students from families of limited means, I propose an increase in the
maximum Pell Grant to $2300.
I
will also ask the Congress to approve creation of College Savings Bonds. These
bonds will offer an incentive for lower- and middle-income families to save now
for the future education of their children. Interest on bonds used for this
purpose will be free from taxation.
While
we do our part to help finance college education, students must do their part and
act responsibly. Most do, many do not. The taxpayers will spend over $1.6
billion this year to pay off student defaults. To ensure that tomorrow's
students do not lose out because Federal guarantees are abused, the Department
of Education will propose a rule holding schools and colleges accountable for
excessive rates of default on Guaranteed Student Loans. Schools in which there is a disproportionately high number of student defaults will
face the loss of eligibility for student aid.
Other
policies addressing this problem include: providing better information to
students on their duties when they borrow and when their debts are due; use of
the IRS to take money owed out of tax refunds; use of collection agencies and
litigation to go after the worst offenders; and increasing the incentives for
lenders and guarantee agencies to do a better job of collecting loans.
6.
Protecting the Health of Citizens. Government promotion of public health has
enabled many individuals to participate fully in society. The Federal
government now has the opportunity to assist elderly persons who fall victim to
catastrophic illnesses and to lead the fight against diseases such as AIDS.
I
am asking the Congress to enact my proposal for Federal coverage of
catastrophic health care costs incurred by Medicare beneficiaries. This
legislation, which I negotiated with the Senate, would provide affordable
catastrophic coverage.
Additionally,
the Office of Personnel Management has a new proposal before the Congress to
help Federal workers deal with long-term health care needs -- both nursing home
and home health care. This proposal will serve as an example for privately
funded long-term health care. No new government funds will be needed to provide
this additional insurance. It will be made available through the
already-existing life insurance program for Federal employees, with a small
additional premium from employees enrolled in the program.
We
must continue to take preventive measures against AIDS while at the same time
treating AIDS victims with compassion and care. Although increased Federal
funding is not the only solution, I am proposing $1.5 billion in fiscal 1989
for research, treatment, testing, counseling, and education, up ten-fold since
1985. Administration scientists were centrally involved in the discovery of the
Human Immuno-deficiency Virus (HIV), developing the
HIV blood antibody test and the anti-AIDS drug AZT. And testing has been
initiated in human volunteers for two experimental AIDS vaccines.
However,
the primary responsibility for avoiding AIDS lies with the individual. As the
Surgeon General, the Secretary of Health and Human Services, and the Secretary
of Education have been reminding us all, the best way to prevent AIDS is to
abstain from sex until marriage and then to maintain a faithful relationship,
as well as to avoid illicit drugs altogether. If the American people follow
this wise and timeless counsel, if our schools and families and media
communicate it effectively, the spread of AIDS can be greatly diminished.
For
our young people, education is crucial for AIDS prevention, and parents have
the primary responsibility for this. The Department of Education released AIDS
and the Education of Our Children last October to assist parents and educators
in this effort. This publication reflects my conviction that educational
efforts in the schools should be determined locally with deference to parental
values.
In
1987 I announced a policy of expanded routine testing, which is essential for early
diagnosis and treatment of infected individuals, for protection of the public,
and for assisting Federal, State, and local policymakers in dealing with this
epidemic. I also established the Presidential Commission on the HIV Epidemic
and will receive their final recommendations this summer.
I
have directed the Public Health Service to undertake a comprehensive program to
determine the extent of HIV infection and full-blown AIDS. We need to know more
about the dynamics of this disease, its prevalence, and its rate of spread.
Beginning in March 1988, the Centers for Disease Control will produce quarterly
reports on the progress in implementing this program.
I
am directing the Food and Drug Administration to accelerate its review of new
therapeutics, vaccines, blood-screening tests, and other products to fight this
disease.
C.
Freeing Individuals To Pursue Productive Endeavors
I
believe all individuals should have the right to pursue their livelihood in
their own way, free from excessive government regulation and
government-subsidized competition. Greater personal autonomy, not a
paternalistic ``industrial policy,'' is the path to greater American
competitiveness. As the 1987 Nobel Laureate in Economics, James Buchanan,
recently pointed out:
``We
now have in place the scientific and technical tools that enable us to make
meaningful comparisons between the workings of an industry in an unregulated,
privatized setting and the workings of the same industry in a regulated or
controlled setting.''
Our
experience with deregulation over the past 7 years has demonstrated the
superiority of industry inspired by private initiative rather than controlled
by Federal regulations. Accordingly, I am instructing my Administration to take
all possible measures to provide individual Americans with the greatest
possible range of economic opportunities, and I invite the Congress to join me
in further deregulating our economy and in promoting free trade among free
nations. Here are nine areas on which the Administration will focus:
1.
Deregulation of Key Industries. Back in 1980, I promised to get the government
off the backs of all individual Americans -- working men and women, consumers,
and businessmen and women. More than 7000 new regulations were issued in my
predecessor's last year in office. This had to stop. At my direction, various
departments have acted to reduce the scope and cost of Federal regulation. We
have accomplished a great deal. For example, we have expedited Federal approval
of experimental drugs, making them available to treat serious or
life-threatening diseases when other treatments do not work.
Individual
Americans have access to more goods and are able to travel more easily and at
less cost because of deregulation. Today, for the first time in 30 years, the
railroad industry is financially stable because of economic deregulation.
Shippers and consumers across the Nation benefit from real cost reductions
brought on by more competition. And, despite some problems inevitable in a
large, dynamic industry, airline consumers now enjoy about $11 billion per year
in lower fares, a great number of flight options, and a safe, efficient air
transportation system unequaled by any nation. Our free market policies have
worked. Although we must continue our vigilance to assure safety, we must not,
in any form, re-regulate these industries.
The
current relaxation of Federal regulation of the trucking industry has
demonstrated the tremendous potential of individual Americans. Now is the time
to complete the deregulation process. I ask that the Congress pass the
Administration's Trucking Productivity Improvement Act of 1987 to remove the
last vestige of Federal regulation of the interstate trucking industry and
ensure that the States do not re-regulate the interstate and intrastate
operations of interstate trucking firms. Already the progress of rail and
trucking deregulation has made the Interstate Commerce Commission an
anachronism. It should be abolished as proposed in legislation sent to the
Congress last year.
This
Administration has sought to promote the free flow of information among
individuals by freeing the telecommunications industry from intrusive
government control. In this ``Age of Information'' America
risks losing its position as the world's leader in information and
telecommunications technology -- not because we lack the talent, the resources,
or the will, but because we have needlessly regulated our telecommunications
industry.
Another
area in which deregulation has promoted individual freedom is the broadcasting
and cable industries. I have strongly supported the elimination of the
so-called ``Fairness Doctrine'' as an unconstitutional infringement upon the
freedom of the press, and I will continue to resist any legislation that attempts
to reverse this Federal Communications Commission (FCC) action. This
Administration has also insisted in the courts that the cable industry receive
the same First Amendment protection as the print media. This is particularly
imperative in light of recent technological changes in the industry. One area
where First Amendment rights have been dealt a severe blow is the recent
codification of the ``cross-ownership'' rule. This last minute appendage to the
Continuing Resolution prevents owners of newspapers and broadcast stations from
even seeking a waiver of the rule and thus violates their First Amendment
rights. This change could force the closing of newspapers. I strongly support
measures to repeal legislative cross-ownership restrictions that inhibit rather
than enhance the free market of ideas.
Where
the government does regulate economic activity, this Administration has sought
to use market-oriented approaches. For example, in the case of airline landing
rights, it is important that individuals be able to freely transfer rights to
operate within the regulatory regime. Despite the progress we have made on
deregulation, more needs to be done. The Office of Management and Budget
therefore will continue to assure that agencies, as they develop proposed
regulations, evaluate and make public their findings concerning the effect of
proposed Federal regulations on private sector employment and commerce.
2.
Reducing Government Reporting Burdens. Since 1982, my Executive Office has
actively sought to reduce the burden of Federal reporting requirements on every
individual and business. Each year we have made sizable reductions in paperwork
burdens, totalling 560 million man-hours from Fiscal
Year 1981 through Fiscal Year 1986. To improve our efforts, the Office of
Management and Budget will issue regulations that will provide a more timely and complete description of proposed reporting
burdens. Citizens will be encouraged to report back to OMB when, in their
experience, the reporting requirement is unduly onerous. The Office of
Management and Budget is systematically simplifying Federal procurement
regulations and reducing the paperwork burden imposed upon those who want to
compete for contracts with the Federal government.
Similarly,
the Census Bureau has substantially improved the questionnaires to be used in
the 1990 decennial census. These improvements will reduce the paperwork burden
on all American households by using a significantly abbreviated ``short'' form
and by making sure that no more households than absolutely necessary are asked
to complete the ``long'' form. These changes will also improve the quality of
the information collected.
3.
Strengthening America's Energy Security. The economic well-being and future
security of this Nation depend upon maintaining and building long-term energy
security and strengthening the domestic energy industry. We have made
considerable progress. While our economy has greatly expanded, we are using no
more energy and less oil than we did 10 years ago, and our strategic oil stocks
are five times higher. But more needs to be done.
In
May 1987, I offered several proposals to enhance our Nation's energy security.
The windfall profit tax has raised little or no revenue since the collapse of
oil prices in 1985, yet it discourages long-term investment in new domestic oil
production. Moreover, it causes oil producers to engage in purposeless
record-keeping. It should be repealed.
Last
May I signed legislation eliminating restrictions on natural gas use. The Congress
should now act to decontrol the wellhead price of natural gas and provide for
open access pipeline transportation. Both measures would lead to less demand
for imported oil. I also urge action on the Administration's proposal to
deregulate many oil pipelines.
This
year the Congress will consider our recommendation concerning oil and gas
activities on the coastal plain of the Arctic National Wildlife Refuge -- the
most outstanding onshore oil and gas frontier in this Nation. The Department of
the Interior would manage exploration, development, and production of these
potentially vast resources while assuring that environmental safeguards are
carefully maintained. The Congress should move expeditiously to enact
legislation implementing our recommendation.
Development
of our offshore energy resources continues to be vital to our economic and
energy security. Last year we developed and implemented a 5-year Outer
Continental Shelf (OCS) leasing program. Unparalleled in its responsiveness to
State and local concerns, this program meets America's need for domestic energy
supplies while it continues to provide protection for our important coastal
resources.
Lastly,
to ensure the future viability of nuclear power in the United States, the
nuclear licensing process should be reformed and the Price-Anderson Act should
be reauthorized. I urge responsible congressional action in these areas.
4.
Protecting the Environment Without Unnecessary
Government Intrusion. I have always believed that this Nation does not have to
choose between a clean, safe environment and a productive economy. Of course,
sometimes trade-offs exist and choices have to be made.
America's
program for environmental protection is the most comprehensive in the world.
And our environmental accomplishments are impressive. We have dramatically
reduced air pollution in our cities and restored thousands of miles of
waterways without hampering economic growth. We have cut levels of lead in
urban air by nearly 90 percent and cleaned up more than 1000 hazardous dumps
and spill sites. And we have made impressive strides in the Superfund hazardous
waste cleanup program. Work has been completed at almost 200 sites this year,
including many that posed immediate threats to human health and the environment.
This brings the total since this program began to over 1000. In addition, work
is underway at more than 700 National Priority List sites.
We
have recognized the global nature of some environmental challenges and played a
leadership role in the world community to meet them. In December, I submitted
to the Senate for advice and consent to ratification an international protocol
to reduce chemical emissions that may be depleting the stratospheric ozone
layer, and I urge early congressional action on this initiative. This protocol
is the first time nations of the world have agreed to specific action in order
to address a global environmental problem.
Consistent
with the report of the National Acid Precipitation Assessment Program, I will
again request congressional approval of a 5-year, $2.5 billion program for
development of innovative clean coal technologies to reduce further acidic
deposition (acid rain) emissions. The Secretary of Energy has begun
implementation of the first 2 years' funding provided in the continuing
resolution and, at my direction, has formed a panel to advise on innovative
technology projects for funding. Additionally, I have reviewed and accepted
significant new recommendations from my Task Force on Regulatory Relief that will
introduce such new technologies into the marketplace more quickly and
efficiently:
The
Department of Energy will permit preferential treatment for innovative clean
coal technology projects, recognizing the risk inherent in such demonstrations.
The
Federal Energy Regulatory Commission will support a 5-year demonstration
program on rate incentives for innovative technologies.
The
Environmental Protection Agency will support and encourage a variety of means
to include ``bubbles'' and interpollutant trading, to
achieve emissions reductions.
5.
Strengthening Financial Markets. With a view to empowering people to engage in
productive activity for mutual gain, I am taking steps to reduce arbitrary
second-guessing of markets by government regulators who can scarcely hope to
administer financial services more efficiently or fairly.
I
reassert my support for the pro-competitive Financial Modernization Act of
1987, which would repeal Sections 20 and 32 of the Glass-Steagall
Act prohibiting affiliations between commercial banks and securities firms. It
would permit bank holding companies, with Federal Reserve Board approval, to
own affiliates that underwrite or deal in securities. I welcome the bipartisan
initiatives of the Senate and House Banking Committees in this area, and I
encourage the Congress to consider additional reforms that keep financial
services open and competitive and allow the development of innovative services
to benefit individuals, businesses, and government. In today's global economy,
The
market for corporate control is a vital component of our free enterprise
economy. This Administration opposes legislation that would have the effect of
making takeover activity more costly and difficult. Such efforts prevent the
free flow of capital and make American firms less responsive to competitive
forces, often at the expense of shareholders.
6.
Protecting Individual's Property Rights. It was an axiom of our Founding
Fathers and free Englishmen before them that the right to own and control
property was the foundation of all other individual liberties. To protect these
rights, the Administration has urged the courts to restore the constitutional
right of a citizen to receive just compensation when government at any level
takes private property through regulation or other means. Last spring, the
Supreme Court adopted this view in Nollan v.
California Coastal Commission. In a second case, the Court held that the Fifth
Amendment requires government to compensate citizens for temporary losses that
occur while they are challenging such a government regulatory ``taking'' in
court.
In
the wake of these decisions, this Administration is now implementing new
procedures to ensure that Federal regulations do not violate the Fifth
Amendment prohibition on taking private property; or if they do take a
citizen's property for public use, to ensure that he receives constitutionally
required just compensation.
7.
Trade and Competitiveness. To enable individuals to enjoy the benefits of trade
with other countries and to engage in productive activity without the burdens
of retaliatory trade barriers, I will continue to encourage a free and fair
trade policy.
Last
February, I submitted to the Congress a program for making the
Unfortunately,
the Congress has failed to recognize the broad nature of the competitiveness
problem and instead has placed too much emphasis on protectionist measures that
may defer short-lived adjustment pains but harm the future health of the
economy. Protectionism serves as a hidden tax on the
American economy, crippling once prosperous industries, throwing Americans out
of work, and raising costs for consumers. American business comes to rely more
heavily on government and less on the marketplace, while Americans watch their
standard of living slip away. Despite the soothing words of its advocates,
protectionism represents the triumph of special interest over the general interest.
This Administration remains committed to working with the Congress to draft
responsible trade legislation, but if that legislation is not free of harmful
protectionist measures, I will veto it.
The
Department of Commerce is taking two important steps to boost
No
sector of our economy would benefit more from international trade reforms than
agriculture. One of my proposals to the General Agreement on Tariffs and Trade
(GATT) for negotiations under the Uruguay Round is to eliminate worldwide all
subsidies that distort agricultural trade and all agricultural import barriers.
I propose that these subsidies and restrictions be phased out over 10 years. We
are striving for an agreement on agriculture by the end of this year, in order
to hasten access of U.S. farmers to export markets now closed to them. I also
propose an international harmonization of health and sanitary measures
affecting agricultural trade with the aim of eliminating foreign countries' use
of them as disguised trade barriers.
The
Nation benefits from the excellence of our scientists, engineers, and
researchers. Because it is important that business have adequate incentives to
fund research here in the United States, we are seeking enactment of a
permanent tax credit for firms engaging in research and experimentation to
replace the tax credit that expires at the end of this year. In addition, we
are seeking legislation that would permit the allocation of at least 67 percent
of a U.S. company's research expenses to its domestic income for purposes of
the foreign tax credit.
During
this Administration, we have also shifted the focus of Federal investment in
R&D to basic research, allowing the private sector to transform this
fundamental knowledge into technologies and processes necessary to develop
products and services that meet the demands of the marketplace. Federal
investment in basic research has grown in real terms by 40 percent since 1981.
Last year, I issued an Executive order to facilitate citizens' access to such
federally funded basic research. In addition, I am asking the Congress to fund
incentives to spur American innovation. I am requesting that we now provide
monetary awards to accompany our National Medals of Science and Technology. In
addition, I am proposing a new Thomas A. Edison Prize that will challenge
Americans from all walks of life to use technology to improve the quality of
life in the United States and the world.
This
Administration has also proposed construction of a Superconducting Super Collider, which is essential to continued U.S. leadership
in high-energy physics and America's scientific and technological
competitiveness. Presently, the Department of Energy is studying locations in
seven States, and late this summer the Secretary of Energy will select the
preferred site for the project. We hope that our allies will share the cost of
construction and operation of this facility, as well as the benefits it will
afford for new discoveries in basic physics.
The
freedom to compete in the marketplace is essential to our concept of liberty.
Our antitrust statutes were intended to protect this freedom. Sadly they have
been transformed into weapons that competitors use against each other and tools
for inappropriate government interference in the marketplace. Additionally,
American firms find themselves at a competitive disadvantage with foreign
competitors because of the burden and uncertainty fostered by some outdated
aspects of our Nation's antitrust statutes. Therefore, I again urge the
Congress to adopt my proposed antitrust reforms, particularly those that remove
disincentives to pro-competitive mergers. In addition, I am asking the Congress
to amend the National Cooperative Research Act to permit some types of joint
production ventures. While retaining the protection of the antitrust statutes,
this change will help U.S. manufacturing firms develop innovative ways to
produce goods and services at competitive prices both here and overseas.
For
example, the domestic automobile manufacturing industry has made major strides
in improving its competitive position, producing higher quality and more
fuel-efficient vehicles. Despite these gains in fuel efficiency, the industry
remains restricted by current law, which requires automobile manufacturers to
``balance'' their line of automobiles to include cars and light trucks that
meet corporate average miles-per-gallon fuel economy (CAFE) standards. These
standards make it more difficult for U.S. firms to produce automobiles that
consumers want to buy. This Administration has proposed the Motor Vehicle
Information and Cost Savings Act of 1987 to eliminate this requirement for
future model years. This legislation would remove a competitive disadvantage
for American firms at a time when the purpose of the CAFE standard has been
largely realized and would remove the incentive for domestic auto manufacturers
to export U.S. jobs.
Another
factor affecting U.S. competitiveness is our civil justice system. During the
past 2 years, 47 of the 50 States have enacted tort reform legislation. We
strongly supported many of these State initiatives, and we will work closely
with the States to achieve further reforms wherever possible. In addition, the
Administration is encouraged by the progress of the legislation to reduce the
costly product liability insurance spiral and will work with the Congress
towards the enactment of effective and meaningful reform of product liability
law.
Key
to promoting investment in ideas, innovation, and research is ensuring that
those investments will be protected. Accordingly, I have proposed as part of my
superconductivity legislation to raise legal protection for products resulting
from patented processes and to prohibit foreign nations from using the Freedom
of Information Act to acquire intellectual property developed by the U.S.
Government. Additional measures planned include joining the Berne Convention,
which provides international protection for intellectual property, demanding
adequate protection of intellectual property rights when negotiating treaties,
and pushing hard in the GATT Round for high standards for intellectual property
protection worldwide.
8.
Free Trade with Canada. On January 2 Prime Minister Mulroney and I signed a
Free Trade Agreement that, when enacted, will mark the beginning of a
remarkable new era. It eliminates all tariffs between the United States and
Canada over the next 10 years, promotes free trade in energy, and greatly
reduces restrictions on investments. The agreement goes beyond most trade
agreements and covers services and investment. It is a ``win-win'' agreement
for both the United States and Canada. Moreover, it sends a signal to the rest
of the world: protectionism is not inevitable. Rather, with the political will
and commitment, all nations can promote freer trade to the benefit of each and
every citizen. I will soon transmit a bill to implement this agreement and I
urge prompt enactment to ensure that the agreement takes effect on January 1,
1989.
In
November, the United States Trade Representative, on my behalf, signed a
framework agreement with Mexico for discussions on trade and investment. This
framework agreement is an important step forward in our bilateral
trade relationship that will enable us to work together to address problems,
reduce barriers and, thus, increase trade and investment between our two
countries.
9.
Freeing the Individual to Work. Few laws that a government may impose are more
injurious to liberty than restrictions on the right to work, as outlined in my
Economic Bill of Rights. Today, we are in the 6th year of an economic recovery
that has created 14.5 million jobs. In order to continue and to build on that
record of growth, we need policies that recognize the changing nature and
changing needs of the work force.
These
policies include enhanced training for dislocated workers, so that they are
able to adjust to a world requiring new and different skills. Our proposed
Worker Adjustment Program will address this need in a comprehensive way while
increasing the role of States and localities in determining how these funds are
best spent. In addition, we are preparing to give States and localities the
flexibility to provide remedial training to disadvantaged youth. For thousands
of low-skilled young people, this initiative holds the potential to provide a
way out of poverty and into a job.
Indeed,
the changes in our work force present other challenges as well. More people are
working than ever before in our history. There is fuller work force
participation across all sectors, and more women are working than ever before.
While this has helped power our tremendous growth, it has also created tension
between demands of work and demands of child-rearing. We need to work with
State and local governments and the private sector to identify and develop
effective solutions, consistent with our efforts to strengthen the family, to
foster practical, voluntary ways to ease this tension.
Several
threats to our continued job growth can be found in a range of initiatives
pending in the Congress, such as employer-provided health care and health
insurance; parental leave; advance notification of plant closings; risk
notification; an increase in the minimum wage; labor protective provisions; and
a ban on employers using polygraphs to prevent theft. Many of these initiatives
have been called ``mandated benefits,'' but a more accurate description would
be ``mandated costs'' or ``mandated unemployment.'' Such mandated costs are
particularly harmful to our Nation's small businesses, which are leading the
way in job creation in our economic recovery. While many of the objectives
sought by such legislation are laudable, they are not the proper subject for Federal
mandates.
While
well intentioned, the added employment costs would reduce job opportunities, lower wages generally, weaken economic
growth, and hinder our competitiveness in world markets. In short, they are
efforts to make individuals and companies pay for new government programs,
mandated by the government but implemented by the private sector. Rather than
forcing employers to provide such coverage, with possible serious adverse side
effects for some workers, these decisions should be left to voluntary
negotiation between employers and employees.
The
adoption of ``comparable worth'' pay standards, another intrusive form of
government intervention into the labor market, has also been proposed. The
objective is not to provide equal pay for equal work, a concept I fully support
and which I enforce as the law of the land. Rather, ``comparable worth''
proposals seek to determine the worth of completely different jobs and then
empower government panels to assign ``fair'' and ``comparable'' wages. Proposals
that would establish panels of ``experts'' to determine how much workers can
earn would create the kind of planned economy that has stifled economic growth
in other parts of the world. Such wage fixing completely ignores the fact that
in a free enterprise economy market forces should determine wages.
We
should seek to eliminate existing barriers to employment. For example, when I
took office I inherited a rule that, for over 40 years, prohibited individuals
from working in their homes to produce knitted garments such as sweaters, caps,
and scarves. In 1984, we dropped that rule and permitted employers to hire home
workers after obtaining a certificate from the Department of Labor authorizing
such employment, thus ensuring that the home workers receive the protection of
the Fair Labor Standards Act. The restrictions still apply to six other
categories of products, and the Department of Labor will be working to extend
the certification procedures for five of the six remaining home work
industries.
Another
proposal in the Congress would raise the minimum wage, thereby creating
additional barriers to employment. Today most people who work at the minimum
wage are teenagers and others with limited experience who
need these jobs to begin their climb up the economic ladder. Few are heads of
households. Higher minimum wages will surely force young and inexperienced
workers into unemployment. We should permit a special minimum wage differential
for teenagers that would increase employment, on-the-job-training,
and future wage growth for the least-skilled workers. Reform of other Federal
wage statutes, such as Davis-Bacon, is also needed.
We
should avoid so-called anti-``double breasting'' laws that would bar firms with
union labor from having independent affiliates without union contracts.
Anti-double breasting laws reduce job opportunities by raising labor costs and
should be left to negotiation between employer and employee.
D.
Empowering Individuals by Opening up New Areas for Human Endeavor
One
enduring legacy of American frontier society has been a love of bold challenges
and wide open vistas. Some 30 years ago we crossed a ``new frontier'' with a
shot into space. Today we continue to face new opportunities and new challenges
in opening a limitless universe beyond our tiny globe to exploration and
commercial enterprise. But here on Earth as well, whole new sectors of
discovery and productivity lie waiting for development
through individual creativity and initiative.
1.
Privatization of Government Activities. Over time, government has accumulated
numerous commercial operations, many of which could be performed more
efficiently by the private sector. Where such opportunities exist to provide
better services at lower cost, we will seek to transfer such services and
operations to the most efficient enterprises. This does not imply the
abrogation of government responsibility for these services. Rather, it merely
recognizes that what matters the most is the cost and quality of the service
provided, not who provides it. In addition, there is an important moral
consideration -- individual liberty would be enhanced and the debilitating
effect of public sector growth on human freedom would be reduced.
Even
now, government relies extensively on the private sector to provide basic
government services in many key programs: the G.I. Bill, Medicare, Medicaid,
student loans, food stamps, and many other programs. Further, the government
benefits from private sector assistance in disbursing funds electronically, assessing
credit worthiness of loan applicants, servicing and collecting payments due the
government, and relying on finance accounting systems from the private sector
to bring about an extensive upgrading of Executive branch financial management
throughout the government. Thus privatization can make government operations
more efficient and at the same time provide more convenient service to our
citizens.
The
Administration sold over $5 billion in government loans to private investors
last year, with plans to sell an additional $4 billion in government loans this
year. Additionally, we sold the government-owned freight railroad, CONRAIL, to
private investors at a price tag of almost $2 billion.
As
part of my Economic Bill of Rights, I established the President's Commission on
Privatization to accelerate our program of placing greater reliance on the
private sector. In its interim report covering government housing programs the
Commission recommended expanded use of housing vouchers, tenant management of
public housing projects, and sales of public housing units to tenants. The
Congress has already enacted a major housing bill that endorses housing
vouchers and facilitates the Administration's efforts to encourage tenant
management and public housing ownership. Similarly, the Commission has endorsed
the sale of government loan assets. The Commission's final report is expected
in March and will cover many more opportunities, including prison construction,
military commissaries, AMTRAK, Naval Petroleum Reserves, and urban mass
transportation. After a careful review of these proposals, legislation will be
developed to implement the most promising proposals.
To
pursue administrative measures within the Executive branch and implement the
findings of the Commission on Privatization, I have created an Office of
Privatization within the Executive Office of the President. I have given it the
responsibility to investigate and propose privatization opportunities that can
be included in my recommendations for the Fiscal Year 1989 Budget.
I
will recommend that a comprehensive study be conducted to measure the likely
benefits that would occur if we permit the private sector to perform some
functions now performed by the United States Postal Service and other government
entities.
I
will also recommend a series of pilot projects to determine if privatization is
the best way to go in other government programs, including operation of minimum
security Federal prisons, Federal prison industries, regulatory audits by the U.S.
Customs Service, management of Federal multiple-use lands by public and private
groups, and waste water treatment facilities funded by Federal grants.
I
am further recommending the direct privatization of all or some of several
existing government programs where the benefits of privatization are believed
to be significant or where studies have already been completed. Included in
this category are the Naval Petroleum Reserves, AMTRAK, Federal Crop Insurance,
arbitration of tax disputes, government employee housing, the Railroad
Retirement Board, the National Finance Center, the National Technical
Information Service, the Alaska Power Administration, and the collection of
overdue loans to the Federal government. I will also ask for substantially expanded
authority to allow individuals to use their private sector credit cards to pay
money owed to the government.
In
addition, I have recently promulgated an Executive order to foster greater
contracting out of services currently provided by the government to private
providers, many in America's vital small business community. Study after study,
many conducted by the General Accounting Office,
demonstrate that savings of between 30 to 40 percent can be achieved by
contracting out government work to private business. If all agencies took
advantage of contracting-out opportunities, the total savings would amount to
$7 billion per year.
2.
New Opportunities in Space. Nearly 2 decades ago, with courage and bold
technological innovation, America pushed back the frontier of space by landing
a man on the moon and safely bringing him back. This breakthrough created
untold opportunities for scientific discovery and commerce and advanced
mankind's age-old dream of exploring space beyond its planetary home.
If
America is to continue its leadership in space, we must now forge ahead,
exploring space's vast frontier and expanding our free enterprise system to
Earth's orbits and beyond. And we must build our long-term space future on a
sound foundation that will ensure reliable and economical access to and use of
outer space.
I
recently adopted an enhanced comprehensive national space policy. This policy
reaffirms America's commitment to space leadership as a fundamental national
objective and recognizes the importance of both private sector and governmental
space activities in achieving critical national goals. And while acknowledging
the importance of returning the Space Shuttle to safe, reliable operations, it
also stresses that access to space, so vital to America's security and
prosperity, must never be limited to any single system.
As
a matter of special note, my policy also specifically recognizes the importance
of extending the reach of American private commerce to space and establishes
goals to guide both civil and national security space efforts in achieving
cost-effective, resilient, and reliable means of access to space.
And
I am no less deeply committed to the long-range goal of expanding human
presence and activity beyond earth orbit and into the solar system, and I
invite the Congress to join with me in endorsing and supporting this new
long-term goal.
As
the first step, I have directed the National Aeronautics and Space
Administration to begin a systematic development of space technologies called
Project Pathfinder, which will aid us in deciding where this new adventure
should take us, and when. The funding proposed for Fiscal year 1989 is $100
million.
Second,
I am asking the Congress to maintain our strong national commitment to a
permanently manned space station. The Fiscal Year 1989 Budget request includes
$1.0 billion to achieve this goal, along with a request for a 3-year
appropriations commitment from the Congress totalling
$6.1 billion.
Third,
I will soon announce a major Commercial Space Initiative that includes
administrative and legislative action to nurture entrepreneurship in space. By
taking advantage of the private sector's innovative excellence, we can maintain
and extend America's leadership in space.
My
initiative will have three goals: (1) promoting a strong commercial presence in
space -- we need the private sector to begin to lay the infrastructure
necessary for research and manufacturing in space; (2) assuring a highway to
space by building on my previous efforts to promote a strong private expendable
launch vehicle industry; and (3) building a solid technology and talent base.
The engineers and scientists who will be working in space are in school now. We
must give them the tools and the enthusiasm to do the job well.
E.
Empowering the People to Participate in the Political Process
Political
enfranchisement in America has evolved in the direction of a more participatory
republic. Today any legislation in this area should open up more participation
in the political process.
1.
Removing Government Interference with the Political Process. The right to free
speech and the right to participate in the democratic process are two of our
most fundamental freedoms. In Buckley v. Valeo, the
Supreme Court held that limits on how individuals spend their own resources in
the political process can violate the First Amendment. This is a sound
principle. We should make sure ``campaign reform'' will not have the effect of
reducing popular participation in the political process or impairing
constitutional rights. Today, there are proposals to restrict certain parts of
our electoral process. A more beneficial reform would be the requirement of
full disclosure of all campaign contributions, including in-kind contributions,
and expenditures on behalf of any electoral activities, including those in the
context of membership communication.
2.
Protecting Civil Servants from Political Pressure. The Hatch Act was passed in
1939 in response to scandals involving the administration of funds in New Deal
programs. It prohibits Federal civil servants from taking part in certain
partisan political activities, such as campaigning for public office,
participating in party management, or raising political funds. The Clay
Amendments in the Congress would severely erode these prohibitions. Although
advanced in lofty terms -- ``the right of government workers to participate
more fully in the political process'' -- their effect would be to politicize
the civil service and reduce public faith in government. Federal workers
already enjoy their democratic right to vote and to express their political
views in a wide variety of other ways.
We
do not want to risk a situation in which Federal employees come to believe that
their advancement depends on espousing particular views, perhaps the political
views of their superiors. Neither should electoral campaigning be allowed to
mar cooperation between the political appointees of the President and the civil
service establishment, a cooperation crucial to good
government. As I have said in the past, the Hatch Act should not be changed or
repealed.
3.
Improving the Civil Service. The past 7 years have witnessed an increasing
commitment by the Nation's Federal civil service to quality in their work and
pride in their performance. The abilities of this work force, from the most
recently hired clerical worker to the most senior member of the managerial
corps, are ready not only to continue the effort to serve the American people,
but to take that service to new levels of excellence.
At
present, however, the Federal civil service is overregulated by a system that
discourages employee initiative and hamstrings government managers with
thousands of pages of restrictive rules and regulations. With the major reforms
encompassed in my proposed Civil Service Simplification Act, we can provide
substantial incentives for top performance, introducing into our Federal
government the classic productive values of the American workplace:
entrepreneurial freedom and reward for hard work.
VI.
To Secure the Blessings of Liberty
It
was the need to secure inalienable, God-given rights from oppression that moved
our forefathers to institute a new government in America. Among these
individual rights, Jefferson wrote, were ``Life, Liberty and the pursuit of
Happiness.'' But, as the Founders of our Republic made clear in drafting a new
Constitution 11 years later, their intention was not only to secure liberty but
the blessings of liberty as well. To attain these blessings would mean
cultivating the values that sustain a free people. George Washington advised
our Nation in his Farewell Address,
``Of
all the dispositions and habits which lead to political prosperity, religion
and morality are indispensable supports. In vain would that man claim the
tribute of patriotism who should labor to subvert these great pillars of human
happiness, these firmest props of the duties of men and citizens.
The mere politician, equally with the pious man, ought to respect and to
cherish them. A volume could not trace all their connections with private and
public felicity.''
Following
our first President's good counsel, I am leading my Administration in efforts
to shore up the moral foundations of our individual freedom:
A.
Protection of the Unborn
None
are more powerless than the unborn. Since the legalization of
abortion-on-demand in 1973, there have been an estimated 21 million abortions
in this country. I am committed to reducing the number of abortions in this
country and reaffirming life's sacred position in our Nation.
The
Congress should pass expeditiously my Human Life Bill. The first section of the
bill contains a finding that abortion takes the life of a human being and that
Roe v. Wade was wrong not to recognize the humanity of the unborn child. The
second section would enact, on a permanent and government-wide basis, the Hyde
Amendment restriction prohibiting Federal dollars from going for abortion
unless a mother's life is endangered. In addition, the Congress should pass the
Human Life Amendment.
At
my direction, the Department of Health and Human Services is about to issue
regulations prohibiting the use of Title X funds (approximately $140 million)
for any program that performs abortion, counsels for abortion, or promotes
abortion through lawsuits, lobbying, or other such activities. The regulations
also require that Title X programs separate themselves from programs that
engage in abortion activities. It is clear from the legislative record
surrounding the passage of Title X that its purpose, far from promoting
abortion, was one of offering an alternative to abortion and indeed reducing
the number of abortions. For some time the program as enforced was standing its
essential purpose on its head, effectively promoting abortion instead of
reducing the incidence of abortion as intended by the Congress.
Another
loophole often used to circumvent prohibitions on using Federal funds for
abortions is the use of psychiatric recommendations. Currently the law allows
for Federal funding only when an abortion is necessary to save the life of the
mother. This law reflects the consensus that abortion may be considered when
there is a physical threat to the mother. I am directing the Secretary of
Health and Human Services to issue regulations that reflect this consensus and
make it clear that only when there is physical danger to the life of the mother
can Federal funds be used for abortion.
In
August 1987 I formed an Interagency Task Force on Adoption that delivered its
final report to me on November 13. I will act to implement the Task Force
recommendations and propose legislation where necessary. Each year over 140,000
children are adopted, yet thousands of childless families still wait for
children to adopt. There are 36,000 children awaiting adoption, of which about
60 percent are ``special needs'' children. Many have physical or emotional
handicaps, belong to sibling groups, or are older children; they are generally
more difficult to place.
This
Administration will also work with the States to encourage model legislation
that promotes adoption. California's Pregnancy Freedom of Choice Act, for
instance, allows the State to reimburse licensed nonprofit maternity homes for
the costs of maternity care and other pregnancy services. Michigan contracts
out special needs adoption to private agencies, reimbursing them for the full
cost of adoption services up to $10,000. These are exemplary efforts to provide
families for children in need of parental love and care.
B.
Religious Liberties
The
First Amendment protects the right of Americans to freely exercise their
religious beliefs in an atmosphere of toleration and accommodation. As I have
noted in the past, certain court decisions have in my view interpreted the
First Amendment so as to restrict, rather than protect, individual rights of
conscience. I have repeatedly affirmed my belief that school prayer on a
voluntary basis is permissible, indeed desirable, in the public school. In my
State of the Union addresses in 1986 and 1987, I expressed my support for a
constitutional amendment that would make it clear that the Constitution does
not prohibit voluntary prayer in public schools.
One
disturbing development in this area of the law has been the exclusion of
religiously affiliated organizations from federally funded programs. A recent
lower court decision held unconstitutional my Adolescent Family Life Program
because the program included religious organizations among those carrying out
its implementation. That decision, if upheld, would effectively require the
government to discriminate against religious charitable organizations, even
when their participation in a program only serves to further its legitimate
secular purpose. The Department of Justice is appealing this ruling that I
believe to be inconsistent with the First Amendment. Our forefathers came to
this land in large part to secure the rights to freedom of religion and
individual conscience that they would later establish as bedrock provisions of
our Constitution. We must avoid such perversion of the First Amendment. Rather,
as we prepare for the 21st century, we must continue to foster the free
exercise of religion that our forefathers understood would provide the moral
foundations for American society.
Conclusion
These
then are the legislative and administrative policies that the Administration
will pursue in furtherance of the six purposes for which the American people
first ordained and established our Constitution. They have been carefully
chosen. For obviously not every policy that a President or a Congress may put
forward is compatible with our Constitution, even though that policy might be
popular. In order to secure the liberty of individuals and political
minorities, the Constitution places a number of carefully considered
restrictions on the Federal government. The Congress does not, for example,
possess a general legislative power, nor the President
the power of decree. The Framers proscribed both as inconsistent with limited,
constitutional government. Thanks in large measure to their wisdom,
America has enjoyed the blessings of liberty for 2 centuries. It is my belief
that the policies presented in this message will contribute to the continuing
restoration of the Federal government to a sound constitutional footing and
thus preserve these same blessings for our posterity in the 21st century.
Ronald
Reagan
The
White House,
January
25, 1988.