Plenary Session Transcripts

Governors Attending:

Guests:

Discussion Subjects:

Address by the Ambassador from Mexico; education; economic outlook for state-local finance; sharing of tax revenues; remarks by the Executive Director of the President’s Committee on Juvenile Delinquency and the Director of the Office of Emergency Planning; Economic Opportunity Act; standardization of statistical data; modernization of state and local government; and remarks of the National Chairman of the President’s Discover America Program

Points of Interest:

James Webb of the National Aeronautical and Space Administration [later the National Aeronautics and Space Administration—NASA] spoke of the importance of statistical standardization in improving decision-making by both private and public and public sector officials as they helped to form and react to public policies. Among its uses would be to equalize assistance among state and local jurisdictions. He noted that a study was under way dealing with methods for developing state-by-state projections of revenue by sources, and expenditures by category, for the year 1970. In addition, the Council of State Governments had just established an Ad Hoc Committee on Automation, Technology and Data Processing, whose functions would include developing ways and means of facilitating interstate exchange of information on automatic data processing equipment. Webb recommended establishing state statistical standards units; sponsoring a conference on the comparability of data among states; and examining the applicability of modern information technology at the state and local levels.

Dr. Walter Heller of the University of Minnesota noted that federal grants had risen more than 400 percent in just ten years. He also said that federal income tax cuts in 1964 served to increase state revenue by both stimulating the economy and reducing deductions for state income taxes. Federal excise tax cuts also gave states the opportunity to step in and raise taxes. However, Heller cautioned that further stimulus through additional tax cuts would depend heavily on what toll the Vietnam War took on the budget.

Sargent Shriver spoke about the Economic Opportunity Act's (EOA) technical assistance grants to states. Noteworthy was the fact that while EOA had originally given the Governors veto power over establishing Neighborhood Corps camps in specific communities, legislation had just passed the House of Representatives to allow that veto power to be overridden under certain circumstances.

Vice President Hubert Humphrey spoke of the Vietnam War, and told Governors that the U.S. could be of help abroad only if we were strong domestically, eliminating discrimination and poverty. Governors watched a press conference by President Johnson, whose TV message was directed to the association. In his statement, the President said that U.S. goals in Vietnam were to convince the communists that we could not be defeated by force of arms or superior power and to seek a peaceful solution via talks, and he asked for the Governors' support. Governor Carl Sanders of Georgia offered a motion endorsing the President's position. Although some Governors opposed or expressed reservations about the President's position, the motion was adopted.

At the close of the meeting, President Johnson sent a plane to Minneapolis to bring Governors to the White House for a discussion about the war.

Memorable Quotes:

Dr. Walter Heller said this about the potential effect of the Vietnam War on the economy: "Looming constantly larger in the Nation's fiscal and economic planning is the war in Vietnam. The period when the growing commitments of manpower and material in Vietnam could be absorbed within the bounds of a $50 billion defense budget...has now passed. Statements to Congress last week by [the Budget Director and Council of Economic Advisers] seemed to reflect a hold-all-bets posture until the Vietnam commitment is decided, measured, and translated into new budget requests and economic impact. Only when this process is completed will we know whether we continue to need—and continue to have room for—further fiscal stimulus through additional tax cuts and other measures..."

He also said, with respect to the fiscal mismatch between federal and state revenues: "Do we want [a tax system] in which...we dismantle the progressive and comparatively equitable federal income taxes while leaning ever more heavily on regressive and comparatively inequitable state-local property, sales, and excise taxes? Or do we seek a tax system in which the powerful federal income tax is used to support expenditures which otherwise would not be made, or would have to be financed from regressive tax sources?"

Vice President Hubert Humphrey said: "South Viet Nam is the testing ground for the so-called ‘war of national liberation'—a contest in which totalitarians believe they can baffle and defeat not only the forces of the Republic of South Viet Nam but also the forces of the most advanced of all nations. In South Viet Nam our adversaries seek to demonstrate decisively that arrogant militancy—and not peaceful coexistence—is the path to eventual Communist triumph."

Oregon Governor Mark Hatfield said this about the motion to endorse the President's plan to send additional troops to Vietnam: "When we are asked to support the President of the United States, we are concerned with methods and techniques by which he seeks to implement these principles. I would also say that until a state of emergency is declared or a state of war is declared under Article I, Section 8 of our Federal Constitution, as Americans I think we not only have the right but the responsibility to differ as long as we differ on a constructive basis, seeking the common goal of peace. And I do not feel, as one, that we have pursued such goals through all channels that are open...to us at this time or up until this time. I am encouraged that the President indicated this morning that he is making a move toward the work of the United Nations' peace-making machinery. But until that is done, I cannot for one give a carte blanche, complete support to the President on the methods and the techniques of achieving this goal, although I share the goal with him."

In contrast, Governor Grant Sawyer of Nevada said: "It seems to me that the position as stated by the President is supported by the vast majority of the public in this country and by many, if not all, of the Governors here...Any alternative to the position taken by the President of the United States...this morning, it seems to me, is unthinkable...Meeting here at this time and place, we have a responsibility to indicate an expression of attitude regarding this matter."

Sargent Shriver said, with respect to technical assistance grants to the states under the Economic Opportunity Act: "Right now Congress and the American people have, in a sense, staked the Governors with $5 million as their participation in the national effort to eliminate poverty. But this is not play money, and next year the amount...may be twice that. This kind of grant of unrestricted dollars, so far as I know, has never been made to the Governors. All that the federal government asks in return...is quality performance."

Robert E. Short of Discover America said: "Some eighty million Americans...took no vacation at all last year. We need only recognize that only about 20 per cent of our whole population has ever been on a commercial airliner. For those of us who are engaged in this humble occupation of innkeeping and worrying about occupancy records, when we find that fewer than 50 per cent have...spent overnight in a hotel, then we have real reason for concern. I think that the figures on the subject would support the view that, at the time of Christopher Columbus, America was more generally known than it is currently today...Over 50 percent of our people have not been further away from their home door than two hundred miles."

Selected Resolutions Adopted:
(1) Endorsing President Johnson's decision to send additional troops to Vietnam; (2) directing the Executive Committee to prepare a report on ways and means whereby the influence of the states might be strengthened regarding matters of federal-state concern; (3) affirming the position of the Executive Committee endorsing and favoring study of the proposal to strengthen both the capabilities and the self-reliance of the states by returning a portion of federal tax revenues each year to the states, without federal controls, and urging the President to establish or reactivate a task force on the subject that would include state and local government representation; (4)expressing opposition to any diminution of the Governors' power to veto proposed projects and programs under the Economic Opportunity Act; (5) increasing civil defense efforts at all levels of government, reaffirming the urgency of fallout shelter protection, and urging continuation of federal financial support for these efforts; (6) directing the appointment of a special study committee of the National Governors' Conference to consider how revenue sources could be structured to permit state and local governments to meet revenue needs either by their own actions or by a rebating of federal revenues or a retention of a percentage of federal revenues; (7) requesting the Council of State Governments (CSG) and the National Institute of Mental Health to cosponsor a national conference to evaluate state experiences and financing with regard to community mental health programs; (8)directing a study of water pollution problems by the National Governors' Conference's Committee on Natural Resources; and (9)urging set-aside of congressional legislation to make highway construction grants contingent on arbitrarily determined highway safety standards, and supporting a national conference of state and local governments to define and clarify areas of traffic safety responsibility as well as to determine the most effective possible courses of action with respect to priority needs and financing.

Presidential Addresses: