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EXECUTIVE SECRETARIAT
ROUTING SLIP
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STAT
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S~- 4622x
October 3, 1986
MEMORANDUM FOR ADMINISTRATION SPOKESMEN
FROM: TOM GIBBON
DIRECTOR OF PUBLIC AFFAIRS
SUBJECT: White House Talking Points
Attached for your information and use are talking points on the
Continuing Resolution passed by the House in lieu of a budget.
If you have any questions concerning these materials, please
contact the Office of Public Affairs at 456-7170.
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WHITE HOUSE TALKING POINTS
October 3, 1986
CONTINUING RESOLUTION:
A TROJAN HORSE FILLED WITH BAD POLICY AND WASTEFUL ADD-ONS
Because Congress missed its self-imposed deadlines for writing
the federal budget for fiscal year 1987, it is proposing instead
a Continuing Resolution for FY 1987. The resolution would
increase domestic spending far beyond President Reagan's
recommendations, endanger national security, and smuggle failed
federal policies into our laws. Here are examples of the damage
components of that House Continuing Resolution could do.
BUDGET BUSTERS
o FEDERAL EMPLOYEES: Reduces planned 4 percent increase in
military pay (in October) to 3 percent (in January), and
raises civilian pay increase to 3 percent from 2 percent,
slightly above the increase in the cost of living.
o ENERGY AND WATER: Proposes 14 new construction starts,
funds $105 million for Appalachian Regional Commission the
President wanted out of the budget, and appropriates $42
million more than the President wanted for the Tennessee
Valley Authority.
o POSTAL APPROPRIATIONS: Grants Postal Service $650 million
more than the President proposed.
o STATE, JUSTICE, AND COMMERCE APPROPRIATIONS: Increases
funding for the Economic Development Administration the
President wanted to eliminate; adds $250 million to SBA's
loan portfolio contrary to the President's request that some
loans be sold; boosts National Oceanic and Atmospheric
Administration budget by $160 million.
o AGRICULTURE APPROPRIATIONS: Guarantees $96 million more in
rural development and 2.5 billion more in Commodity Credit
Corporation loans than the President wanted; adds a total of
$3.3 billion over the President's request for Farmers Home
Administration lending activities; rejects user fees, and
authorizes $421 million more for rural development direct loans
than the President thought necessary.
o LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION: Exceeds
the President s request for NIH by more than .3 billion
and for Employment and Training by $630 million.
For addilanal information, call the White House Office of Public Affairs; 156.7170.
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WHITE HOUSE TALKING POINTS
PROMOTING WASTE AT THE TAXPAYERS' EXPENSE
The Continuing Reolution is ripe with examples of wasteful
budget-busting spending that serves only special interests.
These are the questions the House failed to ask before voting:
o Do we really need to subsidize Amtrak passengers by an
average of ;33 per ticket? The Administration says no
and proposes ending Amtrak subsidies.
o Do we really need grants for publishing guides to local
fishing holes and for underwra.tin participation in fishing
tournaments? The Administration says no and proposes
abolishing the program.
o Do we really need to subsidize the Rural Electrification
Administration? REA was established in 1935 to provide
electricity to rural areas. Ninety-nine percent of the
Nation's farms now have electricity, yet REA still lends
hundreds of millions of dollars each year, often at rates as
low as five percent -- less than half the market rate. Most
borrowers have the financial ability to meet their borrowing
needs in private credit markets. The Administration says no
to this subsidy and proposes phasing out the program
beginning in 1987.
o Do we really need to pay 75 percent of the costs for
constructing local waste treatment plants? Providing sewers
and waste treatment was always a local responsibility until
1972. The backlog of sewage treatment needs that existed
then has been eliminated. The Administration says no to
these costs and proposes to phase out the grant program in
an orderly way over the next four years.
o Do we really need to spend ;200 million so state extension
services can offer advice and Glasswork on lawn and garden
care, cooking, sewing, upholstery, and quilting? The
Administration says no and proposes reducing grants to the
amount normally allocated to farm services.
o Do we really need massive Federal investments in new
transit systems? These systems rarely live up to
expectations. Costs are almost always higher, and revenues
and ridership are almost always lower, resulting in severe
operating deficits. The Administration says no and proposes
to consolidate ground transportation programs into a block
grant and eliminate funding for specific local transit
systems.
~ adCitionai inbrmatan, call the YYAite Nouse Office of public Affairs; 457170.
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WH1TE HOUSE TAIKiNG POINTS
o Do we really need Urban Development Action Grants? The
program has been very slow in completing projects, and some
of the money has gone for such questionable uses of Federal
funds as dockside condominiums in Michigan, a major bank
building in Delaware, and a horse arena in Georgia. T~
Administration says no to this waste and wants to end the
program.
NATIONAL SECURITY ISSUES
o GRANTING GORBACHEV'S REQUESTS: There are provisions in the
House version of the Continuing Resolution that would give
the Soviet Union a clear military advantage over the United
States. They grant the Soviets by legislation what they
cannot win by negotiation.
BINARY CHEMICAL WEAPONS BAN: Allows the Soviet Union a
free hand in enhancing its chemical warfare capability
while preventing the U.S. from producing newer and
safer chemical weapons to use in replacing obsolete
weapons in Europe.
ASAT TESTING: Prohibits anti-satellite testing and
prevents the U.S. from developing an anti-satellite
system. The Soviets would continue to have the world's
only operational anti-satellite system.
NUCLEAR TEST BAN: Prohibits U.S. testing of nuclear
weapons over 1 kiloton, unless the Soviets test weapons
of that size. This will compromise the integrity of
our nuclear arsenal and halt the introduction of modern
safety devices into our stockpile of nuclear weapons.
COMPLIANCE WITH SALT II: Prohibits deployment of any
system that would put the U.S. in violation of SALT II.
This gives effect to a treaty that was never ratified
and which, even if it had been, would have expired in
December 1985. This Resolution forces the U.S, to
unilaterally comply with a treaty the Soviets have
violated.
SDI RESEARCH FUNDING: Makes deep reductions in one of
the highest priority defense programs, severely
hampering the program and undermining our negotiators
in talks with the Soviet Union; and restricts Allied
participation in research, undercutting U.S.-Allied
agreements already signed, and our ability to award
contracts based on fair competition and technical
merit.
For addftional information, call the White House Office Ot Public Aflalrs; 456-7170.
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WHITE HOUSE TALKING POINTS
Slashing International Activities: Cuts international
programs that affect vital security assistance and U.S.
support for economic development in poor countries.
FAILED FEDERAL POLICY
o LEGAL SERVICES CORPORATION: Encourages increased political
activism at the expense of service to the poor; forces
continuing funding of liberal think tanks; cuts private
sector initiatives.
o MANDATORY UNION MEMBERSHIPS: Weakens labor law and allows
construction union officials to force unionism on the entire
industry. It means thousands of construction workers in
non-unionized firms could be forced to join and pay dues to
unions without a vote on whether they want representation.
o UNDERMINING FAMILY VALUES: $145 million could be used to
establish school-based clinics to distribute birth control
and family planning advice.
o TRANSPORTATION ISSUES: Forces rehiring of PATCO strikers
who ignored their no-strike promise.
CRITICAL COMMENTS ON THE CONTINUING RESOLUTION
"This is not your usual, short-term, stopgap CR to tide us
over until the regular appropriations bills have been
enacted. No way. What this really amounts to is a full
year, catch-all, spending and authorization measure.
"If we believed in 'Truth in Labeling' around here, this
would more accurately be entitled the 'Bloated, Omnibus
Money Bill', or BOMB, for short. And that's just what this
is going to do at the White House if we don't defuse this
thing here and now."
-- Rep. Trent Lott, R-Mississippi
September 25, 1986
"This bill terribly distorts the priorities of our country.
Spending on domestic programs is simply too high, while
terribly serious cuts are made in those programs of
essential nature to the defense of this country and to the
security of our hemisphere, and in programs that affect the
relationship that we have with other countries who depend
upon us for the defense of Western ideas.
-- Rep. Jack Remp, R-New York
September 25, 1986
For additioml information. call the 1Miite House Office of Public Affairs; X56-7170.
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WHITE HOUSE TALKING POINTS
"One of the problems that I have with the continuing
resolution process is that it is no longer a continuing
resolution, but rather a means of lumping all kinds of
appropriations and authorization bills together and ignoring
the committees."
-- Rep. Jerry Lewis, R-California
September 25, 1986
For additfonal information, CaN the White House Office of Public Affairs; 156.7170.
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