 United States You mean we small talk all the pictures are being taken. I Thought seriously of bringing Pearl Bailey instead She was ahead yes She's gonna be there anybody in the room And I understand she once had I'm here Depends on the schedule I Believe I empathize very much with Those 15 particularly because fresh in my mind are memories of my own first days as Governor and inherited a rather horrendous situation For whatever encouragement it'll be I'll tell you that one morning on the way into the office And it seemed as if every day a new problem was awaiting I heard a disc jockey and I became an instant fan with what he said I was listening to the radio in the car on the way in and suddenly he said Every man should take unto himself a wife Because sooner or later something is bound to happen that you can't blame on the governor Seriously, I still feel that being governor was one of the most rewarding experiences of my life Do those who are new you will find yourself going home some nights feeling 10 feet tall During the first two years that I've been here the government has played a the governors have played a Very key role in many of our Initiatives and that prominence and effectiveness is continuing under the leadership of Scott Matheson. I understand the your concern about the state of our economy and The effect of the recession has had on federal and state revenues As I said last night, I believe however that there's real reason to be encouraged Look the lowering of the inflation and interest rates Provides a solid base from which economic recovery can take place. I can also understand your concern that Nothing be done to diminish The recovery thus causing additional downward pressure on state revenues If the economic recovery is stronger as some economists predict then some of the federal deficit problems will be eased The deficit spending of course is of concern to all of us Unless the sovereign states Are economically strong It'll be difficult for them to assume increased authority and responsibility That should be returned to all of you into your states last Thursday I Sent to the Congress a proposal for four megablock grants, which would give you increased flexibility To meet the needs of your citizens in a variety of areas many of your suggestions are included in the legislation that we've sent to the hill and I want to reiterate my support for significant adjustments to the state federal Relationship the strides that have already been made are due to a closer working relationship That has existed here to four between the states and the federal government We've accomplished much in the areas of block grants and deregulation Federalism legislation that is sent to Congress is another step. I think in that right direction. I Realize that there are areas of the fiscal year 84 budget in which we disagree As you know, we looked at all alternatives and I feel our budget is fair and thoughtful And I think as you look at the tough decisions in a detailed budget you may agree However, I'll be glad to hear your comments Suggestions on that subject. First. Let me just make a few comments. I have serious problems with your Call for excessive cuts in defense Such a reduction in the growth of defense spending will weaken the nation severely Remember that when John Kennedy was president defense spending was Around 45 percent of the federal budget Even after the full defense build-up that I call for defense spending will only be 26.7 percent of our federal budget Also a number of you have been quoted as saying that the revenue proposal you're considering would translate into an National Governors Association policy to cap the third year of the tax cut and elimination of tax indexing. I Believe that governors Blanchard and Dukakis have made such a statement and I have to say these are both pros proposals that I oppose I oppose them because built into Our tax policies before we got here in legislation passed in 1977 We're ongoing tax increases a variety of ways Plus bracket creep from indexing That our tax cuts have done little more than hold off a Vast increase in the amount of money that we're taking from the citizens Which certainly is not the way to aid a recovery or come out of a recession How would you raise your 70 billion dollar figure? And finally, however, I'm encouraged by your proposed statement of support for 15 to 18 billion dollars in cuts in non-means-tested entitlements This is about the same figure as my budget proposals and my proposed reforms on Medicaid and Medicare Now I know that time is limited and we should be getting to the discussion and I do want to hear from you I thank you for being here and look forward to your comments and Hope now that in addition to your agenda Scott that we can hear from some of the new governors Thank You mr. President. I Believe this is the largest attendance of governors. We've had an international governor's meeting in Washington for some years I suspect that governors are here out of concern for the ability to Govern in their own states as much as the delight to be in Washington but I sense that our purposes here are important on this occasion and I think the governors have made a pretty firm commitment to become involved in the dialogue of the budget in at the federal level and Are anxious to become a part of the national consensus to address it and to ultimately Reduce those out-year deficits to the point where we expunge Hopefully forever the structural portion of those deficits I appreciate that you have mentioned the resolution which we have Passed through the executive committee to be considered by the plenary session tomorrow a major effort is underway on the part of governors who Come into this meeting with 47 of the 50 states Having suffered a shortfall of revenues much greater than their appropriations California has a deficit of somewhere around 1.6 to 1.8 billion dollars for example and Many of the smaller states if you use comparative figures are even worse that forces governors to look at the long-term impacts of interest rates and the out-year deficit and prompts For the first time mr. President the governor's Examining the question of the overall federal budgeting process Basically in a self-interest approach because of the national recovery recovery does not continue and grow Then the problems of raising taxes and reducing expenditures at home continue and so in the spirit of that effort We come to Washington to engage in an open dialogue on that process and Our efforts in that regard are meant to achieve ultimate solutions in a totally appropriate and professional way. I Do believe that our efforts to achieve a Deficit no greater. We course we all are opposed to any deficits. I think if we Did a show of hands. We all want to get the budget balanced But the reality is it will take time years And so we are prepared to examine that in a very practical matter-of-fact sort of way And I've suggested we ought to get down the no more than 2% of gross national product by 1988 That would leave a 90 billion dollar deficit, which is not acceptable But in our opinion is about as good as we can get to unless the economy up turns and hopefully it will So we're here to address those questions basically from that perspective There are some differences In the budget which you have sent to the to the hill What we would like to do is have an open dialogue and discuss those issues and if I may I would like to call upon Governor Jim Thompson to offer some comments on the resolution and then if I may next to Governor Richard Lamb for further comments Mr. President with All deference to some of my Democratic brothers, and you may have seen on television the NGA speaks Resolutions through its resolutions Doesn't speak through Democrats. It doesn't speak through Republicans. It doesn't speak with one governor's Boards I agreed to Cosponsor the resolution before the National Governors Association Because I was concerned both as a governor and as an American About the ability of formation to Sustain the cover I Have for the last two years Consistently rejected the notion That was offered by opponents of mine during my last campaign This recession is the product of any one administration Or many one party Economic policy in this nation is made both by the president by the Congress by the final action of Congress since they had the last word Congress is split between Republican and Democratic control You yourself have said many times that You are concerned nation has not come out of recession as quickly as you would have liked We have all been waiting for recovery. I guess what we fear most is that if we cannot offer the markets of this nation some assurance that the Congress has The will to grapple with built-in structural deficits that you Faced when you assumed your presidency That we'll see that primary going right back up again And we'll see inflation going right back up again, and we'll be right back on our backs In worse position than we were in this last recession from which we are now Emerging I think that's why you came to Washington to reverse that Growth and you have had the courage in my view Take on some of the sacred cows of the federal budget, and you've had the courage to say to the governors You've been asking for more authority and more power and more control over your own lives That comes at some fiscal cost So in your first administration in your first year We support you as an association and indeed provided some of the votes on the hill to help pass The budget resolutions tax cuts you deemed essential to your economic program And many of us still support what we did back then and it's not retreated from what you said Many of us disagree with you respectfully sir about where and in what magnitude the budget might be cut But so do others who are firm and political supporters of yours on the hill and in the park The bottom line is that we want to come out at the same place that you want to come out We want to take down the size of the out your deficits We want to we want to reverse The structural deficits that are now built in we want to reverse the notion that spending even for such things as Non-means tested entitlement programs motherhood issues Medicare We go against that a great political risk is as governors as you might suspect we endorse the bipartisan Social Security Recommendation by a vote of the executive committee at our last meeting We're stepping out as far as as governors have ever stepped out to get to the same Bottom line is you because we believe like you that the nation cannot sustain federal government spending Beyond the revenues that we're willing to raise and I think that Even though we may disagree that that disagreement is going to be ultimately resolved in the Congress or it should be Governors have little or no defense capacity But the Congress certainly does by virtue of the authority committed to it under the Constitution You certainly do as the commander in chief Together with the Joint Chiefs of Staff. We have made our suggestions We want to be part of the debate and we think that that your administration should welcome our Entry into the debate even if we come in initially on terms that you may So I do the resolution as a resolution of support for your fundamental goals There we go to governor lamb Moments of danger. There's always somehow come together a bipartisan Coalition that says there is not a Republican solution or a Democratic solution But an American solution that somehow can make sense We're not trying to criticize. We're really trying to be constructive I think all of us as chief executives recognize that we are going into an ear of hard choices That there's going to be no choices that are going to be easily made and in all of the Distribution of of the sacrifice that we're trying to make some sense out of this now I was asked to give you a very brief report of sort of the state of human resources And I do it in that recognition that there are in fact to govern and is to make series of hard choices and there's going to be somebody that's going to you know criticize whatever choices that you make but In the human resources area for instance a hundred percent of the states have reduced Their health services to mothers and children 47 states are 94% of them cut back on the child health block their grants 27 states have reduced the funds to triple children and on and on it goes and I think that we're not Recognize that's not there are some hard choices that are going to have to be made And I think when we look at those programs that we see the direct responsibility That we do recognize that there is some in this way in process There is there has to be a bipartisan coalition the Mx Missile is made in my state means lots lots of jobs, but instead of 240 mx missiles If 239 were built we could completely fund all of those programs that I I just alluded to The bottom line is not to criticize but is to say the intention of this is to is to try to put forth a balanced program Bipartisan basis, which really says that it isn't any one party's fault, but that all parties can add to a solution to the problem Will you be Willing to take some questions from the government. Yes. Yes, I would the president the budget resolution is on the table I think it's time for any governor to make presentation ask any question He feels that he would like to present it this time. We'll go first to governor bond if we may Mr. President, I believe the governor's feel very strongly in supporting this deficit resolution that we hope no further Financial burdens will be Transferred to the states because we simply cannot afford it and governor lamb. I believe Referring to the potential shifting of any burdens in health and human services cost to the state I'd like to urge and to ask the administration's position on Maintaining tax exempt financing for state and local bonds because this is always one area that seems to be targeted when people talk about raising taxes the simple point is that the Treasury does not lose money Well, I'm not aware of anything Don am I Missing something. I'm not aware that we've ever wanted to take away the tax Or the tax situation that We would not impose a tax on what have always been tax-free Securities at the local and state level And well, the government may say there's no loss of revenue I'd like to debate that private with him at some time show the facts of what we've developed the Treasury as far as the cost to us And as to why The states think that they have to subsidize private industry a profit-making industry such as housing except we're needed for Low-cost housing is beyond me the housing industry has it is making quite a recovery Starts now our rate at the bottom million and a half the real estate market And turnovers of secondary homes has really been booming in January The thing is is not getting underway. It's interest rates come down. I think the governors have to think through Whether or not they wish to continue subsidizing housing In order to Make higher profits for the housing industry and whether or not that is a proper role for state government President very respectfully the only way we're providing any low and moderate income housing single family housing For for the poorer the less fortunate in our states is through the tax except mortgage revenue bonds And we'll I accept Secretary Regan's offer. We'll be happy to discuss that with him further May I before another question may I just respond to something that has been said already Here before we started the questioning with regard to that part of the budget of defense And yesterday. Yes, I was watching television and I heard some criticisms that were unfair and that we're We have benefited the rich at the expense of those who aren't rich I don't know of anyone that can point to any single thing That can prove that Uh Our tax program was across the board Obviously the fellow paying a small tax and getting a 25 percent savings as of july when that goes into effect is going to be paying A smaller 25 percent less than he was paying But the same is also true when you get up to the fellow at the top of the earning scale He's paying a very large tax and he's going to pay 25 percent less The only suggestion that there's some unfairness in this Could be from those people who would like to increase the progressivity of the tax Now the congress has passed one that goes to a top tax bracket of 50 percent And I don't think that in the guise of giving a tax cut That it was our place to quietly turn around and increase the progressivity of the tax in some way particularly when lack of investment capital Is one of the problems in connection with this recession The other point having to do with that. We're canceling programs that hurt the poor and we're not doing anything that hurts the rich Our budget For health and human services is the biggest it has ever been in history It is a percentage of Almost 37 percent of the budget Defense spending in the other hand is only 26.7 percent of the budget and We can prove in any number of ways How what we are are doing the people for example in food stamps. Yes, we've had some reforms We saved about a billion dollars last year that we found was in fraud and waste and outright Well mainly fraud of people that were not supposed to be getting the food stamps And we have made some reforms or the bill would be much higher. But as of today We are providing food stamps for three million more people than we were providing in 1980 And the cost is about four billion dollars bigger than it was in 1980 With regard to the defense spending You would have to know what we found when we came here Defense spending had decreased in real dollars 20 percent over the decade of the 70s The increase in the social reforms The transfer payments of people had gone up in that same period 122 percent Now we found a volunteer army that had most people thinking the only solution was to go back to the draft On any given day 50 percent of our airplanes couldn't fly for lack of spare parts Almost the same percentage of our ships in the navy couldn't leave port either for lack of crew The non-commissioned officers or for spare parts We have embarked on a Program designed to put us back To a position where we can meet the first prime responsibility of the federal government, which is national security And i'm pleased to tell you That over half the defense budget goes for personnel and maintenance readiness and The thing that has happened in the last two years is amazing We have today the highest percentage of high school graduates and the armed services that we've ever had Even during the days of the draft We have the highest percentage who are average or above In intelligence level Then we've ever had in the military We have the highest rate we've had in years and years in first term re-enlistments But most of all We have a military now in which they are proud to wear the uniform There is an esprit de corps That is just It puts a lump in your throat and you come in contact with them and see it And the other point is we are restoring Weaponry Which is the least part Of the Defense budget, but restoring weaponry that finally is going to enable us To meet our responsibilities wherever they may occur For example In planes The young men who are flying the b-52s today are all younger than the planes they fly And those planes are not up to What our opposition has We now are producing tanks that are superior To those even though they're badly outnumbered by the soviet union In short, we're on our way, but I think you should know this also The pre-training president Having hit bottom in his last year projected a five year During 1980 projected a five year Increase and improvement In the military calling for increased spending We are a little above that, but in February of 1981 when we proposed our five year defense plan Through management Changes through changes in procurement through increased efficiencies and with the decline in inflation Which I think that we had a hand in bringing about We were able ourselves before we submitted our budgets to reduce them by 41 billion dollars I once told cap that I thought he was being politically foolish He should leave the 41 billion in there and let the congress find it and then they'd be happy but He cut it then they cut some more on the way And now we have proposed 55 billion dollars more in cuts over the next five years and this is a total Practically the increase that we had first thought would be necessary over and above the Proposal of the preceding president We're down to about what was his proposal, but I do have to say something He couldn't have bought the weapons That they included as What we're going to be in there build up For the money that he had said would be the increase There was a little underpricing of some of the things that he had proposed buying But this mainly this fairness thing is the one that I know it's been a drunk beat of propaganda and demagoguery about that Uh, we don't think it is true at all We are feeding 90 or Giving to the people 95 million meals a day And are underwriting and subsidizing housing for 10 million families In our present programs and I could go on with other figures. I know there's been talk about Medicare and that we're increasing the participation by the individuals at the beginning of Medicare illnesses We are but what no one has added in return for that We are for the first time in history providing complete Unlimited catastrophic care For those people This has never before been done We're talking about those illnesses that go on throughout the rest of their life and sometimes at costs of a hundred thousand dollars a year But in order to do that and to avoid over utilization We're asking for some participation Because we found out in california when we reformed welfare That the medicaid patients were averaging five and a half times as long in the hospital For the same operations and illnesses as were those patients who were paying their own cost Well, I went on too long more questions Uh next question, please the governor earl and then we'll go to governor brown if we may I take issue with the defense spending in the rest of cuts, but let me focus on the fairness question that you raised Recently in my home state 20,000 people lined up all day in the poll to apply for 200 jobs Those 20,000 people are people who paid their dues. They're not the shirkers. They're not the people who didn't show up on Monday They can't find work They've got to provide for their families adequate nutrition adequate shelter adequate medical care And at the same time that they face that the federal government declines its support for those programs We at the state level are required to pick them up and regrettably pick them up with taxes that are unfair and are regressive Most of us I would guess first go to the sales tax The income tax in my state is fairly unpopular And we have seen a bad Skewing in the fairness side now people like myself I practice law before I ran for office the lawyers are doing pretty well But the machine tool workers aren't doing very well the people in the basic industries Are doing very well and at a very time when we need some support for them It seems to me our programs are skewing in the other direction So when some of us criticize the defense spending and criticize the domestic cuts It is because of the fairness notion and not simply for the purposes of political rhetoric We like you would like to get the budget balanced I think if it is and we get the deficits under control We'll cease and return in strength in our major industry But we don't seem to feel that the path to the you and the congress The democrats in the congress as well have chosen to follow are going to get us out of the wilderness And I want to exacerbate our problems Well, there's no one can quarrel with the situation with regard to the unemployed But the answer to that has to be the recovery of the economy In the meantime, we have increased Extensions and added extensions of unemployment insurance because of the the long-term unemployed I think to a greater extent than has ever been done before We're preso proposing a plan to the congress and one that would involve you at the state levels also In which again this includes increases in unemployment Payments for people but also exploring the idea of using unemployment payments To see if we can't help first of all in training and relocation Combine that with the payment, but also we're talking about a voucher system In which a person could take instead of us unemployment Could take a voucher for the amount of that unemployment to an employer And the employer would get that pay from the government in return for taking this person on in a job And with the proper protections against Taking him on and dropping him when the voucher ran out and so forth Um all of these things being considered by us The other day when the unemployment roles dropped Simply by reason of the economy by four-tenths of a percentage point That would take a five billion dollar Jobs bill to equal that same drop in unemployment Now one part of our program is Accelerating needed work not make work Things that are in the budget for 84 by the all the agencies and departments that they have to do Whether it's construction or repair maintenance, whatever What we're suggesting to congress is that they let us accelerate and move those up into 83 now and Do that which is going to have not only a direct Effect on employment but an indirect by way of supplies and equipment and so forth that would have to be purchased And then take that money out of the 84 budget just move it up and spend it now We'll do everything we can except that i again must say Recognize that The greatest employer who's employing a hundred million people now A higher percentage employed in this recession of the total or potential workforce Then we've known in times past when we had full employment There is a structural facet to unemployment that doesn't have to do with the recession and that is The increased numbers of people who are entering the workforce and the lack of skills For some of the jobs that are going begging in this time of unemployment I say to any one of you on any given sunday Just turn to the help wanted ads And see how many pages in any metropolitan paper There are of help wanted ads and then look At why The employer is advertising because of the skills that are required And those skills not available and that's why we have in place now a job training act That will be worked at the community level in connection with local and public leaders and industrial and business leaders To train people for the jobs that are going begging in that particular community in that area We've had too many job training programs in the past That really weren't training them with any regard as to whether there were open jobs in that skill that they were being taught or not I think one of the most shocking in California several years ago after the watts riots Was a job training bill that paid people to come and learn to be dishwashers And the people that were taking it were doing it for the money They were paid while they were taking the course because they laughingly would tell anyone that Was around those were the jobs they could get any day they wanted Without taking any training We we think that the first priority must be On will it or will it not help stimulate the economy because that is faster at getting recovery Providing employment than anything government can do otherwise And all of our meetings up here it seemed like uh All we discussed is how we're going to say that or how we're I'm going to spend it the most important thing is how we're going to make I'm chairman of small business pass for us It looks to me like the key to this administration our economy is how do we have sales? and I've met with uh secretary reagan and uh 80 percent of all new jobs in the last decade has come from small business Being a former business man, it's my opinion that big business is no more affecting the big government I think we've demonstrated in this country the big business for the most part for some exceptions can no longer compete The best information I have a 70 percent of all the new jobs come from companies less than five years old And your your tax incentive program based on the same information gives big business about a two to one favorable position The information in small business association national small business association Shows that the top hundred programs that qualify for small business and perform there That's what 200 people and actually a dollar for the business pays twice the tax 100 companies and fortune path Appreciate the tax credits and the sale of tax credits. I don't find any fault with incentives We gave to big business to read to and the I think we've missed a great opportunity to stimulate The capital investment necessary to really create the job to get our economy I know myself I sold out when I was 37 years old and never went back to business because there was no incentive there I think the the the target areas I'd like for the administration to consider And for Don to get more thought to was the elimination of double dividend taxation I never could figure out why you pay taxes twice And I think you believe to that in your prior prior speech Secondly, the limitation of 3,000 dollar maximum loss Well, you're not going to get any venture capital in the marketplace If you make a million dollars you pay you 46 percent tax and you lose you want to run off The equity they think would fight borrowings, borrowings as a depression They have been given the same kind of treatment nationally as big business But I think if you're going to create the job to get our economy moving lower debts It's going to be how do we up save? We cannot save our way of foster care in front of fat, half the fat and weight The greedy, uh, leased the dynamics of the American economy I'm satisfied with that and I'm satisfied with the fact that both of the small business sector Which today makes up about 45 percent of all jobs Well, I couldn't agree with you more about who provides the jobs in the country We thought we had done something with them in that 85 percent of small business Does not pay corporate tax. They pay personal income tax So the 25 percent cut we thought there was something pretty sizable that we'd done We have also as you know, are making an over phasing in Another factor that was killing the family owned business and that was the estate tax the death in the family and The remainder of the family would have to sell a business or the farm in order to pay the estate taxes and We're making changes in that raising the minimum so that we cover most of those small businesses Also making it the spouse does not have to pay An estate tax the surviving spouse Things of that kind that we thought were beneficial that Don or Dave I miss any points here and you want to chime in No, I think the government's got a good point, Mr. President. These are good things to do They have another consideration. They were not added In the 1981 tax bill because we thought we already had enough in their first small business We are more willing to consider these to see whether or not we can fit them into some huge That's Yeah, that's yeah The president will take a few more minutes may I just suggest That as a governor asks his question who makes his statement Could we keep it about as short as we possibly can and I have a list here and jim hunt is next And then we'll go from there if we may I'd like to suggest to you that there's another dimension To strong economic growth in addition to what we do with the taxes and regulations and all of that all of which is critically important And you've had great success with your program. I think you're seeing some some real results from And that has to do with the kind of people we're developing Further or not, they're the kind of people that are going to make us a productive society Your own department of commerce is going to come out of the report. I think this week Saying that in the field of high technology, the united states has moved from a position of Pope dollars To one of folk being strongly challenged in the world today Uh, all I listen to about the competition we're getting from japan But we ought to keep talking about that and keep focusing on that They're taking 60 of the market and some of the new microelectronic chip Developed fields for example You talk a moment ago about not being up to Our defense not being up to the strength of our opposition We suggest that that's the same situation with regard to education in respects the new york stock exchange has just done a study Which said It's not the quality. It's not the practice of theory. It's not the business government partnership In which japan has pushed ahead of us It's what they have done with their educational system 95 percent Of their students today in japan graduating high school That figure is 74 In the united states of america We feel as governors that we really must respond in a very strong way that we've got to have a dramatic Upgrading on the quality and effectiveness of our educational system. Let me let me put it this way, mr president We feel and the business leaders increasingly all over this country. They're involved in this with us today as governors feel that tolerating the deterioration Of our schools or the failure to upgrade In this country is the equivalent Of unilateral disarmament in national defense in terms of the economy failure to act With our schools and education is that equivalent with regard to national defense. We know how you feel about national defense We think that that is an app and out There's three things that are involved for some technological innovation. One is The quality of our elementary and secondary schools The quality of our universities and the research that's going on there and then of course what we do to encourage innovation and assistance Capital and so on we think there are three things mr president that That really needs to happen in this country. We're going to be successful number one, of course This is an area where states and local governments have a primary responsibility We don't chart from that We we believe that's the case But it also means that we have to put so many of our resources there We have to go out and get more resources and their governors sitting around this paper that are asking this year for substantial tax increases To provide those kinds of schools to provide those kinds of people We would urge that states not be cut more in ways that make it tough to do that job of education Second, mr. President. I want to commend you and thank you for your initiatives We were heart when you said the kinds of things you did in your state of union address You went to boston. You went to st. Louis You've got some increases in your r&d budget. We would hope there would be more of them, but we commend for this fine, mr. President The congress is going to be acting in this field. There's a perkins bill that's being Going through the house right now to provide more money in the math and science fields crucial areas Or we're so short of good teachers and so on And then in the senate Their proposals for a high technology borrow act. It's got agriculture going, you know in 1862 and so on And other kinds of proposals many of us report The carnage foundation is working to try to pull a lot of these things together That in the sense we could have the development of a comprehensive approach That would help for us Become the strongest nation in the world in terms of developing our people to be productive And make education the tools for that kind of growth and that kind of stronger kind of future We appreciate what you're doing. We would simply say this is going to be the next place where the action will be in our view And we hope you'll give us continued leadership Not only that but let me and and please don't take this as an attack on on all of you, but over the years In any of us deny that something has happened in the field of education And it doesn't have to do with the the kids lacking in ability or not But I heard a an educator in the air the other day talking about the great shortage in our country now of engineers and of people Qualified for work in these high tech fields And this one was saying that in The particular state There their teacher colleges had only graduated In one year six teachers qualified to teach mathematics In a whole state now We're how many of us? What do we know about what courses are required? and what are Electives and the part of the students When I was going to school I know that to get out of high school you had to You had to have studied all the way through geometry And the principal was in school that no young person at that age knows what they may turn out Wanting to do and be as they get older So they're exposed to everything But I have a feeling that in most schools today Most of the courses are elected The student is supposed to be wise enough to choose what they want to study And not study these things that Look hard and look boring Mathematics and compared to some of the other courses that are available And is this not a place for us to turn and say let's get back to as adults Making the decision of what we think young people should be exposed to until They are at an age and a level where they begin to have some idea as to what they want to do and then choose the courses, but The foreign language was a requirement In every school that I knew As I say mathematics all the way through was a requirement And how do we justify The colleges and universities that we have in the country today with their bonehead courses That they have special courses that incoming freshmen have to take in order to learn to read And yet they come there with a high school diploma in their hands I had a Mother a black mother one day Corral me And she said don't talk to me about busing or things of that kind She said Talk to me about keeping My son in the class he's in until he learns what he was supposed to learn in that class Stop passing him up to another class Simply because he's come to the end of the year And if we don't believe that's happening in a great many of our public schools today You can bet it is And the result is that as she said he gets a diploma He's out of high school and he can't read his diploma Now We are discussing and have been discussing in cabinet About what we might be able to do it at our level to help with this shortage With regard to mathematics if a kid does not have mathematics by the time he's 16 years of age Extensive mathematics that kid can never Never be an engineer He can never get into the courses If he decides then as a 17 or 18 year old that engineering might be what he wants And we know that engineering is one of the great shortages, you know in the united states today Well, I didn't mr. President Two things if I could add on the education proposal you mentioned in your state of the union Is going to be scrubbed up this week while you're in california with hopes to be presented to you on monday So it can go next week up to capitol hill And with that that was the chopper that's now landed to take you to california. So we're going to have to terminate this If you have any parting comments or No, I think I'll just leave by telling you my favorite story all my people have heard it and they're going to groan We talk so much and we deal so much today in economic projections Three gentlemen arrived at the gates of heaven And st. Peter had to tell them there was only room inside for one And he said we decided that the one who's practicing the oldest trade or profession will be admitted And so a doctor stepped forward and said well the lord made adam and then with a rib from adam made eve That makes him a surgeon. I guess i'm the one Before he could move in the second one said just a minute before the lord made adam and eve All was chaos and the lord took the chaos and in six days fashioned the earth I guess he was an engineer so that means me and as he started to go in the third one said I'm an economist. Where do you think he got all that chaos?