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THE WHITE HOUSE

Office of the Press Secretary


For Immediate Release November 18, 1999
       PRESIDENT CLINTON, VICE PRESIDENT GORE, AND CONGRESSIONAL
      DEMOCRATS WIN ON THE BUDGET, BUT CONGRESS STILL NEEDS TO DO
               MORE WORK TO ADDRESS AMERICA'S PRIORITIES
                           November 18, 1999

TABLE OF CONTENTS

I. Overview of Key Victories and Remaining Issues

II. A Victory for America's Students (table)

III. Progress On America's Priorities

       -Protecting Fiscal Discipline and Paying Down the Debt
       -A Victory for America's Students
       -Fighting Crime, Drugs, and Guns
       -Investing in a Cleaner Environment
       -Maintaining America's Global Leadership
       -Empowering Families and Communities
       -Progress on the New Markets Initiative
       -Addressing Health Care
       -Responding to the Farm Crisis
       -A Strong Research and Development Agenda
       -Other Highlights

IV. Despite All the Progress in this Year's Budget, There is Still

More Work That Needs to Be Done

         OVERVIEW:  PRESIDENT CLINTON, VICE PRESIDENT GORE, AND
     CONGRESSIONAL DEMOCRATS WIN ON THE BUDGET, BUT CONGRESS STILL
         NEEDS TO DO MORE WORK TO ADDRESS AMERICA'S PRIORITIES
                           November 18, 1999

Protecting Fiscal Discipline and Paying Down the Debt. The budget agreement represents a victory for President Clinton's stand for fiscal discipline. Between 1981 and 1992, the debt quadrupled. In 1992 the deficit was $290 billion and projected to rise to over $400 billion in 1999. As a result of the tough and sometimes unpopular choices made by President Clinton in 1993 and 1997, we have seen seven consecutive years of fiscal improvement for the first time in America's history, bringing last year's budget to a unified surplus of $123 billion -- the largest ever. Throughout the year, the Republicans have been proposing fiscally irresponsible tax cuts that would have jeopardized this record of fiscal discipline. In September, the President vetoed a Republican tax cut that would likely have drained hundreds of billions of dollars of the Social Security surplus from debt reduction. As a result of the President's stand, America will stay on course to pay off the debt held by the public by 2015 -- for the first time since Andrew Jackson was President.

A Victory for America's Students. After vetoing a Congressional budget that denied funding to priority education and training investments, President Clinton and Vice President Gore delivered on their ambitious education agenda.

Fighting Crime, Drugs, and Guns. To keep crime coming down to record lows, President Clinton fought for important investments in the budget to build on the Administration's successful community policing initiative, including funds to put more police on the street and critical resources to strengthen law enforcement efforts to keep communities safe.

Investing in a Cleaner Environment. President Clinton and Vice President Gore won significant gains for the environment in the fiscal year 2000 budget, including new resources to combat water pollution, protect wildlife, address global warming, and preserve precious lands across the country. At the same time, the President and Vice President forced Congress to drop or substantially modify dozens of anti-environmental riders that would have rolled back hard-won environmental safeguards and benefited special interests at the expense of our public lands.

Maintaining America's Global Leadership. The Republican Congressional budget would have turned its back on America's leading role in the world by not providing funds for peace in the Middle East, leadership at the United Nations, economic development in the poorest countries, and efforts to halt the spread of nuclear weapons. The President fought for and secured victories to strengthen America's leading role in the world - by meeting our commitment to the Middle East peace process, paying our dues and arrears to the United Nations, making a critical investment in debt relief for impoverished countries, funding efforts to safeguard nuclear weapons and expertise from the former Soviet Union, and help raise labor standards around the world.

Empowering Families and Communities. President Clinton and Vice President Gore are committed to tapping the potential of America's urban and rural communities. This budget moves forward on their vision to help revitalize America's communities and empower families.

Progress on the New Markets Initiative: In his State of the Union, President Clinton proposed to bring more private investment to all areas of the United States. The President and Congressional Leaders have agreed to work together to enact bipartisan legislation to help spur economic development in urban and rural communities that have not shared fully in the benefits of the nation's strong economy. The New Markets initiative enjoys bipartisan support.

Addressing Health Care. The President won a $34.5 billion investment in health programs, 11.7 percent above the FY 1999 enacted level, to strengthen the public health infrastructure, provide critical prevention and treatment services to individuals with mental illness, and advance biomedical research with a historic investment of $2.3 billion.

Responding to the Farm Crisis: The Agriculture Appropriations bill included $8.6 billion in emergency funds to assist our Nation's farmers and ranchers who are suffering through the second year in a row of low commodity prices and, for many, crop and livestock losses from severe drought and flooding. The final budget includes over $550 million more to fulfil the unmet needs identified by the President, including significant funds targeted to hurricane-affected areas, increased crop loss payments for all producers, and over $2.5 billion in additional farm loans to help producers secure financing for next year's crop. The President and Vice President remain concerned that Congress did not address the underlying issues that exist in the wake of Freedom to Farm legislation and that more needs to be done.

A Strong Research and Development Agenda: The final budget included an unprecedented commitment to key civilian research. The final budget increases the President's "21st Century Research Fund" for civilian research programs by more than $3 billion. It also includes a five year extension of the Research and Experimentation tax credit.

Much Work Still Left To Do In the waning days of the session, the President and Congressional Democrats prevailed in making critical investments to advance the President's comprehensive education agenda, put more police on the streets, protect the environment, and strengthen America's leading role in the world. But much work still remains to be done.

                    A VICTORY FOR AMERICA'S STUDENTS
                           November 18, 1999

|------------------+----------------+-----------------+----------------|

|                  |                |                 |                |
|                  |    HOUSE GOP   |   FINAL BUDGET  |  DIFFERENCE    |
|                  |     BUDGET*    |     AGREEMENT   |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|     Class Size   |      $0**      |   $1.3 billion  | +$1.3 billion  |
|      Reduction   |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|    After-School  |  $300 million  |   $453 million  | +$153 million  |
|      Programs    |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|       GEAR UP    |       $0       |   $200 million  | +$200 million  |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
| Title I Grants   | $7.732 billion | $7.941 billion  | +$209 million  |
|    to LEAs       |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|  Accountability  |       $0       | $134 million*** | +$134 million  |
|    Set-aside/    |                |                 |                |
|     Title I      |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|     Head Start   | $4.760 billion | $5.267 billion  | +$507 million  |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|     Education    |  $500 million  |  $769 million   | +$269 million  |
|    Technology    |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|  Teacher Quality |   $75 million  |   $98 million   | +$23 million   |
|    Enhancement   |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|   Safe and Drug  |  $566 million  |  $606 million   | +$40 million   |
|   Free Schools   |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
| Charter Schools  |  $130 million  |  $145 million   | +$15 million   |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|     Reading      |  $200 million  |  $260 million   | +$60 million   |
|    Excellence    |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|  Adult Education |  $378 million  |  $470 million   | +$92 million   |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|    Work Study    |  $880 million  |  $934 million   | +$64 million   |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
| Learning Anytime |       $0       |   $24 million   | +$24 million   |
|     Anywhere     |                |                 |                |
|                  |                |                 |                |
|------------------+----------------+-----------------+----------------|
|                  |                |                 |                |
|  Hispanic Educ.  |   $43 million  |  $436 million   | +$393 million  |
| Action Plan **** |                |                 |                |
|                  |                |                 |                |

|------------------+----------------+-----------------+----------------|

*Based on the Labor/Health and Human Services and Education bill passed by the House Appropriations Committee on September 23, 1999. This bill provided $33.321 billion for all education programs, compared to $35.701 billion in the final budget agreement.
**House bill eliminated the class size program by absorbing it in a block grant that dedicated no funding specifically for class size reduction.
***The Title I set-aside for accountability is also included in the Title I grants to LEAs.
****These figures represent increase over FY 1999. HEAP figures also include increase to Title I.

                    PROGRESS ON AMERICA'S PRIORITIES
                           November 18, 1999

Protecting Fiscal Discipline and Paying Down the Debt The budget agreement represents a victory for President Clinton's stand for fiscal discipline. As a result of the President's commitments, America will stay on course to pay off the debt held by the public by 2015 -- for the first time since Andrew Jackson was President.

A Victory for America's Students
After vetoing a Congressional budget that denied funding to priority education and training investments, President Clinton and Vice President Gore delivered on their ambitious education agenda.

Fighting Crime, Drugs, and Guns
To keep crime coming down to record lows, President Clinton and Vice President Gore fought for important investments in the budget to build on the Administration's successful community policing initiative, including funds to put more police on the street and critical resources to strengthen law enforcement efforts to keep communities safe.

Investing in a Cleaner Environment
President Clinton and Vice President Gore won significant gains for the environment in the fiscal year 2000 budget, including new resources to combat water pollution, protect wildlife, address global warming, and preserve precious lands across the country. At the same time, the President and Vice President forced Congress to drop or substantially modify dozens of anti-environmental riders that would have rolled back hard-won environmental safeguards and benefited special interests at the expense of our public lands.

Maintaining America's Global Leadership The Republican Congressional budget would have turned its back on America's leading role in the world by not providing for peace in the Middle East, leadership at the United Nations, economic development in the poorest countries, and efforts to halt the spread of nuclear weapons. The President fought for and secured victories to strengthen America's leading role in the world -- by meeting our commitment to the Middle East peace process, paying our dues and arrears to the United Nations, making a critical investment in debt relief for impoverished countries, funding efforts to safeguard nuclear weapons and expertise from the former Soviet Union, and help raise labor standards around the world.

Empowering Families and Communities President Clinton and Vice President Gore are committed to tapping the potential of America's urban and rural communities. This budget moves forward on their vision to help revitalize America's communities and empower families.

Progress on the New Markets Initiative
In his State of the Union, President Clinton proposed to bring more private investment to all areas of the United States. The President and Congressional Leaders have agreed to work together to enact bipartisan legislation to help spur economic development in urban and rural communities that have not shared fully in the benefits of the nation's strong economy. The New Markets initiative enjoys bipartisan support.

Addressing Health care
The President won a $34.5 billion investment in health programs, 11.7 percent above the FY 1999 enacted level, to strengthen the public health infrastructure, provide critical prevention and treatment services to individuals with mental illness, and advance biomedical research with a historic investment of $2.3 billion.

Responding to the Farm Crisis
The Agriculture Appropriations bill included $8.6 billion in emergency funds to assist our Nation's farmers and ranchers who are suffering through the second year in a row of low commodity prices and, for many, crop and livestock losses from severe drought and flooding. The bill doubled annual payments to farmers of major grain crops to about $11 billion. The emergency funds include $400 million to help subsidize the cost of crop insurance premiums and $325 million for livestock and dairy assistance. In addition, the Administration secured an additional $2.5 billion in farm loans in final negotiations, as well as $186 million more for nationwide crop losses -- bringing total crop loss funds to nearly $1.4 billion, as well as $130 million to clear farm fields and streams of debris left by flooding. The President and Vice President remain concerned that Congress did not address the underlying issues that exist in the wake of Freedom to Farm legislation and that more needs to be done.

A Strong Research and Development Agenda For six years in a row, President Clinton and Vice President Gore have proposed substantial increases in the Federal government's research and development portfolio to build a healthier, more prosperous, and productive future. The final budget increases the President's "21st Century Research Fund" for civilian research programs by more than $3 billion.

Other Highlights

DESPITE ALL THE PROGRESS IN THIS YEAR'S BUDGET, THERE IS STILL MORE WORK

                         THAT NEEDS TO BE DONE
                           November 18, 1999

In the waning days of the session, the President and Congressional Democrats prevailed in making critical investments to advance the President's comprehensive education agenda, put more police on the streets, protect the environment, and strengthen America's leading role in the world. Much work remains for the future.

x Passing Common Sense Gun Legislation: While the Administration's successful strategy of keeping guns out of the hands of fugitives, felons, and children has contributed to record declines in crime, recent tragic shootings reinforce the need to protect American families from gun violence. For months, Congress has failed to enact common-sense gun legislation. Congress must pass a bipartisan juvenile crime bill that includes strong gun measures to: close the gun show loophole; require child safety locks for handguns; ban the importation of large capacity ammunition clips; and bar violent juveniles from owning guns for life.

x Passing a Strong, Enforceable, Patients' Bill of Rights: For over two years, the American people have been waiting for Congress to pass a strong, enforceable Patients Bill of Rights. During that time, the President has exercised his executive authority to extend critical patient protections to over 85 million Americans. The House passed such legislation earlier this year, but the Republican leadership is preventing an open debate on it in conference. The President continues to urge the Congress to recommit to passing this legislation and prevent another year from passing without action on this important issue.

x Strengthening Social Security: The President has put forth a specific proposal to use the benefits of fiscal discipline and debt reduction to strengthen Social Security, extending its solvency from 2034 to 2050. This would be a down payment on truly saving Social Security. The Republican so-called "lockbox" legislation would not add a single day to the life of Social Security.

x Modernizing and Strengthening Medicare: Although members of both parties joined the President in the effort to adjust Medicare health care provider payments, Congress failed to address the growing challenges that Medicare faces. With the number of beneficiaries expected to double over the next 30 years, Medicare needs adequate resources and the tools to be as efficient as possible. A long-overdue prescription drug benefit option is also essential for seniors and people with disabilities.

x Reducing Youth Smoking: President Clinton and Vice President Gore have made passage of comprehensive tobacco legislation to reduce youth smoking a top priority in order to stop kids from smoking before they start through a significant price increase, measures to prevent tobacco companies from marketing to children, and critical public health prevention and education programs. Congressional Republicans have acted as politicians instead of parents, and killed this year's effort to increase the excise tax on cigarettes by 55 cents a pack. Public health experts agree that the single most effective way to cut youth smoking is to raise the price of cigarettes.

x Expanding Federal Hate Crimes Laws: At a time when our leaders should be doing all they can to bring Americans together, the Congress has refused to enact legislation to punish hate crimes. The President has called for a bill that would make it easier to prosecute crimes based on race, color, religion and national origin; and that would also include crimes based on sexual orientation, gender and disability. Congress should take a strong stand against intolerance and hatred by enacting such legislation without further delay.

x Providing for Long-term Care Assistance for the Those Chronic Illnesses and Their Families: At the beginning of this year, the President proposed a new, $6 billion initiative to address complex long-term care needs, including an unprecedented $1,000 tax credit that compensates Americans with long-term care needs of all ages or the family caregivers who support them for their formal or informal costs. The initiative also supports a new National Family Caregivers Support Program that provides a range of critical services such as respite, home care services, and information and referral. Many members of Congress, on a bipartisan basis, introduced similar proposals, but despite this, the Congress failed to respond and lost an opportunity to provide critical assistance for this population.

x Providing Health Options for Older Americans: In the FY 1999 and FY 2000 budgets, the President proposed an initiative to expand health options available for older Americans by: enabling Americans aged 62 to 65 to buy into Medicare by paying a full premium; providing vulnerable displaced workers ages 55 and older access to Medicare by offering those who have involuntarily lost their jobs and their health care coverage a similar Medicare buy-in option; and providing Americans ages 55 and older whose companies reneged on their commitment to provide retiree health benefits a new health option, by extending "COBRA" continuation coverage until age 65. Despite the fact that the number of uninsured Americans aged 55 to 65 is growing faster than any other age group, Congress refused to act on this proposal.

x Encouraging Small Businesses to Offer Health Insurance: In the FY 2000 budget, the President proposed an initiative to encourage small businesses to offer health insurance to their employees through: a new tax credit for small businesses who offer coverage by joining coalitions; encouraging private foundations to support coalitions by allowing their contributions towards these organizations to be tax exempt; offering technical assistance to small business coalitions from the Office of Personnel Management. The President urges Congress to provide new health insurance options for these vulnerable Americans.

x Continuing to Help People Move From Welfare to Work: In January, the President proposed to invest an additional $1 billion in the Welfare-to-Work program and to reauthorize the program with several changes including helping more low-income fathers work and support their children. The Congress enacted eligibility changes similar to those proposed by the Administration to allow States, tribes and communities to more effectively serve low-income fathers and hard-to-employ welfare recipients, but failed to provide any new funding.

x Raising the Minimum Wage: The Congress has failed to pass a clean, straightforward bill to increase the minimum wage by $1 over two years

x Expanding Trade and Providing Opportunity for Africa and the Caribbean Basin: Congress should complete work on the Africa Growth and Opportunity Act and the Caribbean Basin legislation -- crucial to strengthening our economic ties with Sub-Saharan Africa and our Caribbean and Central American neighbors. This legislation would help increase trade, enhance opportunity, and boost growth in America and nations in Africa, the Caribbean, and Central America. The President called for the rapid passage of the Africa legislation in the State of the Union address and has pressed the case for these bills several times since. The House passed this legislation overwhelming earlier this summer, but the legislation is now awaiting Conference action.

x Supporting Southeast Europe's Economic Development and Integration: Congress should pass the Southeast Europe Trade Preference Act submitted by the President, which would authorize expansion of duty-free treatment to a broad range of imports from the region for five years. This initiative is an important part of the Stability Pact launched by the President and other leaders last July, and is designed to strengthen stability and prevent further conflict in the Balkans by facilitating long-term economic growth.

x Promoting Peacekeeping: While the budget goes a long way in meeting the anticipated requirements for funding UN peacekeeping operations around the world, the Congress did not fund the full requests. The shortage threatens to undermine fragile peace processes around the world or to incur additional UN arrears. To promote peace and encourage burden-sharing, Congress should fully fund UN peacekeeping efforts.

x School Construction: Despite record student enrollment and a massive maintenance backlog in our nation's schools, Congressional Republicans again failed to enact school construction legislation. The President's school construction proposal would provide funding to help states and school districts build and modernize 6,000 schools nationwide. We can not hold students to high academic standards if we do not provide them with adequate facilities within which to learn. Congress should pass the President's plan and invest in our nation's schoolchildren.

x Enacting Comprehensive Campaign Finance Reform: This year, the Congress failed once again to adopt real, meaningful reform of our campaign finance system. Although the House passed a bipartisan reform plan, a minority of the Senate blocked further action and left unchecked the influence of moneyed special interests. The President will continue to fight for comprehensive campaign finance reform and believes that the Senate should act to restore the public's faith in our political process.

x Child Care Initiative. In his State of the Union, the President proposed an historic child care initiative to make child care better, safer, and more affordable for America's working families. The President's proposal included $7.5 billion over 5 years for child care subsidies for low-income working families, and tax credits to help millions of working families pay for child care. The Republican Majority has refused to support these critical investments.

x Farm Assistance. The President and Vice President were pleased to get $8.6 billion in emergency assistance to farmers and ranchers, but they believe that Congress did not address the underlying issues that exist in the wake of Freedom to Farm legislation. For example, most of the assistance is not targeted to farmers who need it most, but is available to farmers, both large and small, whether they have suffered particular difficulty this year or not.

x Providing Fairness to Immigrant Families. Congress has failed to take action to provide fairness to immigrant families by: restoring important disability, health, and nutrition benefits to additional categories of legal immigrants; restructuring the Immigration and Naturalization Service (INS); approving the Administration's proposal to support the process of democratization and stabilization now underway in Central America and Haiti and ensure equitable treatment for migrants from these countries; or changing the registry date to permit long-term migrants to adjust their status.

x Continuing to Empower Communities: Urban and Rural Empowerment Zones were funded at $70 million in 2000, $55 million for Urban Zones and $15 million for Rural Zones and Enterprise Communities. Empowerment Zones continue to be a priority for the President and Vice President and they are committed to supporting and obtaining funding for the Empowerment Zones' remaining eight years. Without the full 10 years of funding, the Round II Empowerment Zones and Enterprise Communities, designated in January 1999 by the Vice President, will have difficulty implementing their community and economic development strategies to revitalize their communities.

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