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THE WHITE HOUSE

Office of the Vice President

For Immediate Release September 7, 1995

          PRESIDENT, VICE PRESIDENT MARK SECOND ANNIVERSARY OF NPR
                    President Says Reinventing Government
                     The Right Way To Balance the Budget
                 New Savings Proposals Now Total $70 Billion

President Clinton and Vice President Gore announced today that they are significantly ahead of schedule in their efforts to make the federal government "work better and cost less," and that savings proposals from "Phase II" of their efforts now total $70 billion.

"America faces a choice in the next two months about which path to take to a balanced budget," the President said in a South Lawn event to mark the second anniversary of the National Performance Review (NPR), which is headed by the Vice President.

"Our plan -- the right way -- is to balance the budget by cutting government while continuing to invest in training and education for America's children," the President said. "The Republican way -- the wrong way -- is to cut education and training and other investments in our future. It seems to me that a balanced budget won't be much of an accomplishment if we trade in our future to get it."

The NPR's first report, unveiled in September 1993, identified $108 billion in savings over five years (fiscal 1995-99) and proposed a reduction of 252,000 full-time equivalent (FTE) positions in the federal government. Today, the President said the Administration was ahead of schedule in meeting both goals -- with $58 billion of the $108 billion locked in and an estimated 160,000 fewer FTEs.

The Vice President presented the President with the NPR's second anniversary report, Common Sense Government: Works Better and Costs Less , which identifies another $70 billion in savings over five years (fiscal 1996-2000) from the NPR's Phase II, which began last December. These savings are a part of the President's balanced budget plan that he unveiled in June.

"The progress we've made to deliver better government service at lower cost is making possible a balanced budget without disastrous and draconian cuts in education and training," the Vice President said. "Take your pick: Do we want to reduce programs such as Head Start, Safe and Drug-Free Schools, Goals 2000, and students loans, or do we want a government that works better and costs less? I say the choice is clear."