Plenary Session Transcripts

Governors Attending:

Guests:

Discussion Subjects:

• Crime Reduction and Public Safety (CRPS) – federal and state programs to compensate victims of crime; National Guard issues; and the Crime Control Act and other criminal justice issues
• Executive Management and Fiscal Affairs (EM) – the President's FY77 Budget; congressional budget priorities; and issues in the state and local bond market
• Human Resources (HR) – manpower, employment, and Title XX issues; the President's block grant proposals; and the role of the states in child immunization programs
• Natural Resources and Environmental Management (NR) – pending energy issues; and discussion with the Executive Committee of the Energy Resources Council regarding the implementation of recent legislation, synthetic fuels, conservation strategies, and impact assistance
• Rural and Urban Development (RUD) – Commerce Department programs for economic development assistance and future operations of Title V Commissions and the Appalachian Regional Development Commission; federal opportunities for the states in the new subsidized housing program and cutbacks in the 701 planning program; and federal food production policies and programs that affect the states
• Transportation, Commerce and Technology (TCT) – major transportation issues
• Other Governors' Sessions – three concurrent working sessions to explore new initiatives by individual Governors, including: state and local fiscal pressures, restoring confidence in government, and crime and corrections
• Plenary Session Discussion Subjects - Address by the President of the United States; and congressional re-enactment of Revenue Sharing: problems and prospects

Points of Interest:

At the meeting's opening plenary session, President Gerald R. Ford told governors of his support for renewal of revenue sharing and his proposals to enact block grants giving greater flexibility to states in program administration in four areas: health (which would consolidate Medicaid and fifteen other categorical health programs), education, child nutrition, and social services.

U.S. Representative Jack Brooks, Chairman of the House Government Operations Committee, presented governors with his reasons for opposing revenue sharing: (1) public officials should be held strictly accountable for their expenditure of public funds; (2) continued dependence on federal funding would increase the federal government's leverage over state and local governments rather than ensuring continued decentralization; (3) experience thus far suggested that revenue sharing had been used for regular operating and capital expenses, while basic problems remained untouched, suggesting that revenue sharing funds discouraged rather than encouraged reform; and (4) the federal government was borrowing money to fund revenue sharing, thus using revenue sharing to disguise the deficit. His opposition notwithstanding, Rep. Brooks said that he would support markup of a revenue sharing extension with the hope that the program would be funded in a manner consistent with the effort to solve the nation's fiscal problems. He made clear, however, that he opposed the proposed extension of five-plus years, which he believed was unreasonably long without being reconsidered by authorizing committees. He also recommended that like most other government programs, revenue sharing be funded through an annual appropriations process to hold state and local governments accountable for planning and budgeting. And he recommended that the formula for allocation and distribution of revenue sharing funds be revised to remove inequities so that funding would be funneled into areas where it was most needed.

U.S. Rep. Brock Adams, Chairman of the House Budget Committee, echoed Rep. Brooks' concerns about revenue sharing, particularly regarding an extension as long as five-plus years. His primary concern was that with mandatory programs such as revenue sharing looming, a balanced budget would take longer to achieve.

U.S. Senator Russell Long, Chairman of the Senate Finance Committee, chastised the House leadership for their lack of support for revenue sharing and expressed confidence that the Senate would enact a strong extension if supporters like the governors were willing to fight hard for it.

During discussion, governors argued that one way to cut federal spending without targeting revenue sharing would be to stop federal mandates that states did not want.

A second plenary session was devoted to committee reports and consideration of policy positions. A proposed policy position concerning deregulation of natural gas became the subject of considerable discussion, much of it driven by regional interests and concerns. Governors also held concurrent working sessions on exploring new initiatives by individual governors, restoring confidence in government, and crime and corrections.

Memorable Quotes:

NGA Chair, Governor Bob Ray of Iowa, said: "Perhaps there is no better time than during the Bicentennial Year to refresh our memories of how the federal government was created. It was formed by the states, and it has those powers which the states saw fit to delegate to it for the common good of their citizens…It seems strange then that over the years we have found states with the feeling of helplessness at times…in coping with the gigantic bureaucracy that is constantly nipping at the heels of the states…Professor Luther Gulick said in 1933, "The American state is finished. I do not predict that the staets will go but I affirm that they have gone." The governors at our meeting today are living evidence that Mr. Gulick was lacking in foresight…The states have not only managed to survive; they continue to serve as a focal point for growth, innovation and restoration of confidence in the governmental process."

U.S. Senator Russell Long said: "I don't think that you ought to be expected, if you can find enough votes to pass a revenue sharing bill now, to have to go along with your bill being written by somebody [i.e., House committee leaders] who is against your program. It seems to me that if you are going to have a revenue sharing bill it ought to be written on the Senate side by people who believe in the idea, and we have a majority vote, and we ought to be able to pass it, and we can do it in the Senate in my opinion. If you people don't believe in it enough to fight for it, just forget it, and let's not waste our time on it. I think if you are willing to fight for your program, and if the mayors are willing to fight…and if those county commissioners and local officials are willing to fight…I don't have the slightest doubt that you can get the folks to vote for it."

Selected Policy Positions Adopted:
(1) Supporting implementation of the Omnibus Crime Control and Safe Streets Act; (2) seeking amendment of federal law to permit civil defense spending for natural as well as nuclear disaster; (3) requesting the Secretary of Health, Education, and Welfare to rescind federal Medicaid regulations governing standards in Intermediate Care Facilities, instead accepting state standards that conform to minimal standards; (4) supporting legislation pending in the U.S. House of Representatives to extend the Airport Development Act; and (5) requesting that the federal government make accessible to governors the Federal Telecommunications System as a first step in the establishment of an improved communications system for all governors.

Presidential Addresses: