DATE=1/31/95

TYPE=FOCUS

NUMBER=4-08079

TITLE=TOWARD A NEW FEDERALISM

BYLINE=ERICA BENIS

TELEPHONE=619-0934

DATELINE=WASHINGTON

EDITOR=PHIL HAYNES

CONTENT= (INSERTS IN TAPE LIBRARY)

ANNCR: THE VOICE OF AMERICA PRESENTS FOCUS

CART: FOCUS THEME (ESTABLISH THEN OUT)

ANNCR: LAST NOVEMBER, AMERICA'S VOTERS DEMONSTRATED THEIR

UNHAPINESS WITH THE POLITICAL CLASS BY THROWING SOME

PROMINENT POLITICIANS OUT OF OFFICE. THEIR MESSAGE

SEEMED CLEAR: THAT THEY WANTED LESS GOVERNMENT. AND SO

FOR THE FIRST TIME IN DECADES, A GREAT DEBATE HAS BEGUN

OVER THE ROLE OF THE FEDERAL GOVERNMENT IN THE NATION'S

FUTURE.

THE LOOMING BATTLE PITS THE DEMOCRATIC REFORMERS -- WHO

WOULD LIKE TO STREAMLINE THE FEDERAL BUREAUCRACY BUT

STILL KEEP WASHINGTON IN THE FOREFRONT -- AGAINST THE

REPUBLICAN DISMANTLERS -- WHO WANT TO REDUCE IT.

THE DEMOCRATS WOULD LIKE TO UPGRADE THE QUALITY OF THE

AMERICAN WORKFORCE, WIND DOWN WELFARE, AND RESTRUCTURE

HEALTH CARE. THE REPUBLICANS -- ENERGIZED BY A SOLID

"MANDATE" FROM THE VOTERS IN THE NOVEMBER ELECTION --

WANT TO MAKE THE GOVERNMENT LIVE WITHIN ITS MEANS BY

REDUCING IT DRASTICALLY.

IN THIS FOCUS REPORT, PREPARED BY VOA'S ERICA BENIS,

____________ LOOKS AT THE DAUNTING TASK FACING THE

REPUBICAN-CONTROLLED CONGRESS AS IT REAPPRAISES THE

GOVERNMENT'S SIZE AND PURPOSE.

TEXT: THOMAS JEFFERSON, THE THIRD AMERICAN PRESIDENT AND ONE

OF THE FRAMERS OF THE U-S CONSTITUTION, ENVISIONED A

WISE AND FRUGAL GOVERNMENT, WHICH -- AS HE PUT IT --

SHALL RESTRAIN MEN FROM INJURING ONE ANOTHER, BUT LEAVE

THEM OTHERWISE FREE TO REGULATE THEIR OWN PURSUITS OF

INDUSTRY AND IMPROVEMENT.

THE FEDERAL GOVERNMENT OF MODERN DAY AMERICA IS FAR FROM

FRUGAL. BUT IT IS NOT LARGE RELATIVE TO THE AMERICAN

SOCIETY. SO SAYS JOHN KINCAID, PROFESSOR OF GOVERNMENT

AND PUBLIC SERVICE AT LAFAYETTE COLLEGE IN EASTON,

PENNSYLVANIA.

TAPE: CUT ONE KINCAID

"BECAUSE SO MUCH OF THE ADMINISTRATION IS STATE AND

LOCAL GOVERNMENT IN THE UNITED STATES, THE FEDERAL

GOVERNMENT IS NOT VERY LARGE WITH RESPECT TO ITS NUMBER

OF EMPLOYEES. THE FEDERAL GOVERNMENT HAS ABOUT

THREE-MILLION EMPLOYEES, STATE AND LOCAL GOVERNMENT

ACCOUNTS FOR 15-MILLION EMPLOYEES. IT IS HUGE IN

ABSOLUTE TERMS -- COMPARED TO OTHER GOVERNMENTS AROUND

THE WORLD -- GIVEN THAT THE FEDERAL BUDGET IS RUNNING AT

ABOUT ONE-POINT-FOUR TRILLION DOLLARS."

TEXT: THE FEDERAL GOVERNMENT'S OUTSTANDING DEBT IS ABOUT

FIVE-TRILLION DOLLARS. THE INTEREST ON THIS DEBT,

ALONE, AMOUNTS TO 14 PERCENT OF THE OVERALL FEDERAL

BUDGET. EXPERTS SAY THAT, IN THE NOT TOO DISTANT

FUTURE, THE FEDERAL DEBT WILL INTERFERE WITH THE

GOVERNMENT'S ABILITY TO COVER THE COSTS OF SOCIAL

SECURITY, MEDICARE, AND OTHER SOCIAL WELFARE PROGRAMS.

BUT HOW DOES ONE GO ABOUT SHRINKING THE GOVERNMENT?

IN THIS RESPECT THE CLINTON ADMINISTRATION HAS MADE GOOD

PROGRESS: THE SIZE OF THE FEDERAL GOVERNMENT AS A

PERCENTAGE OF THE WHOLE ECONOMY HAS DROPPED FROM 25

PERCENT IN 1991 TO THE CURRENT 21.6 PERCENT, THE LOWEST

SINCE 1979. THE RANKS OF FEDERAL EMPLOYEES HAVE SHRUNK

BY MORE THAN 100-THOUSAND. THE FEDERAL BUDGET DEFICIT

-- THAT IS THE DIFFERENCE BETWEEN WHAT THE GOVERNMENT

SPENDS AND WHAT IT RECEIVES IN TAXES AND OTHER REVENUES

-- HAS ALSO BEEN REDUCED.

BUT IN THE 1994 CONGRESSIONAL ELECTIONS -- SAYS

PROFESSOR KINCAID -- VOTERS INDICATED THAT THAT WAS NOT

ENOUGH.

TAPE: CUT TWO KINCAID

"I THINK THE MAIN MESSAGE THE VOTERS WERE SENDING IS

THAT THEY WANT MORE EFFECTIVE AND EFFICIENT GOVERNMENT,

AND THEY ARE NOT PREPARED TO PAY MORE TAXES IF THEY

DON'T FEEL THEY'RE GOING TO GET AN EFFICIENT AND

EFFECTIVE RETURN ON THOSE TAXES."

TEXT: ACCORDING TO EXPERTS, ANY ORGANIZATION THAT DOUBLES OR

TRIPLES IN SIZE NEEDS TO BE RESTRUCTURED: THE FEDERAL

GOVERNMENT -- WHICH SPENT ABOUT 100-BILLION DOLLARS WHEN

LYNDON JOHNSON BECAME PRESIDENT IN 1963 -- IS NOW

APPROACHING THE TWO-TRILLION DOLLAR SPENDING LEVEL.

LIKEWISE, ANY ORGANIZATION THAT IS 40 OR 50 YEARS OLD

NEEDS TO RETHINK ITSELF. THE U-S FEDERAL STRUCTURE AND

POLICIES WERE FIRST DEVELOPED UNDER PRESIDENT WILLIAM

MCKINLEY BEGINNING IN 1896, AND WERE COMPLETED UNDER

PRESIDENT HERBERT HOOVER BETWEEN 1929 AND 1933.

IN 1933, PRESIDENT FRANKLIN ROOSEVELT, TRYING TO LIFT

THE COUNTRY OUT OF ITS DEEPEST ECONOMIC DEPRESSION, USED

THE FEDERAL GOVERNMENT IN A WAY THAT CHANGED AMERICAN

SOCIETY. OVER A PERIOD OF EIGHT-YEARS, HIS PROGRAM

CALLED THE NEW DEAL CREATED THOUSANDS OF PUBLIC WORKS

PROJECTS; HELPED WITH LOW-INCOME HOUSING CONSTRUCTION;

SET THE FIRST NATIONAL MINIMUM WAGE. IT ESTABLISHED

SUBSIDIES FOR FARMERS, TIGHTENED FEDERAL REGULATIONS ON

BIG BUSINESS, AND SOCIAL SECURITY FOR SENIOR CITIZENS.

IN 1964, TO STRENGTHEN WHAT BECAME KNOWN AS "THE WELFARE

STATE," PRESIDENT LYNDON JOHNSON INTRODUCED ANOTHER

SERIES OF SOCIAL PROGRAMS CALLED THE GREAT SOCIETY.

THESE INCLUDED MEDICAL CARE FOR THE ELDERLY, A VOTING

RIGHTS LAW, CHILD NUTRITION PROGRAMS, URBAN

REVITALIZATION, AND A JOB CORPS TO TRAIN SCHOOL

DROPOUTS.

CRAFTED OVER SIX DECADES, THESE LANDMARK INITIATIVES

SPAWNED NUMEROUS DEMOCRATIC CONSTITUENCIES -- INCLUDING

BLACKS, ORGANIZED LABOR, FARMERS, THE ELDERLY AND THE

POOR -- ALL OF THEM DESIRING HELP FROM THE FEDERAL

GOVERNMENT.

PETER DRUCKER IS A PROFESSOR OF SOCIAL SCIENCE AT

CLAREMONT GRADUATE SCHOOL IN CALIFORNIA AND AN

INTERNATIONALLY KNOWN EXPERT ON MANAGEMENT AND

ECONOMICS. HE SAYS THAT LIKE THE REST OF THE DEVELOPED

WORLD, THE UNITED STATES HAS REACHED THE LIMITS OF THE

"WELFARE STATE".

TAPE: CUT ONE DRUCKER

"FOR 40 YEARS, PLUS OR MINUS, WE HAVE ALL PROCEEDED ON

THREE ASSUMPTIONS: IN ECONOMIC THEORY, THAT CONSUMPTION

CREATES CAPITAL INVESTMENT. ON THAT BASIS WE HAVE BUILT

CONSUMER ECONOMIES WHICH HAVE DESTRYED THE SAVINGS RATE.

THE SECOND BASIC THEORY ON WHICH WE HAVE BEEN PROCEEDING

IS THAT DEFICITS STIMULATE THE ECONOMY. GOVERNMENT

DEFICITS HAVE NOT STIMULATED ANY ECONOMY, THEY HAVE

ONLY DEPRESSEED THEM. THE THIRD THEORY ON WHICH WE

BASED OURSELVES WAS THAT PEOPLE ARE NOT INCOMPETENT BUT

THAT THEY ARE POOR. AND SO BY GIVING THEM MONEY, THEY

WILL BECOME COMPETENT. THAT WORKED IN THE DEPRESSION.

THAT WORKS IN A DISASTER. IT HAS NOT WORKED IN THE

TRANSITION SOCIETY IN WHICH WE LIVE."

TEXT: WHAT AMEICAN POLITICIANS DON'T SEEM TO REALIZE -- SAYS

PROFESSOR DRUCKER -- IS THAT IN THE POST-COLD WAR ERA

MOST OF WHAT PASSES FOR GOVERNMENT IS OBSOLETE, BECAUSE

THE UNITED STATES ITSELF IS IN A PERIOD OF TRANSITION.

TAPE: CUT FOUR DRUCKER

"WHEN WE CAME OUT OF WORLD WAR TWO, 70 PERCENT OF THE

AMERICAN PEOPLE STILL MADE THEIR LIVING BY THE SWEAT OF

THEIR BROW AND WORKING WITH THEIR HANDS. TODAY IT IS 25

PERCENT. AFTER WORLD WAR TWO THE WAY TO MAKE A GOOD

LIVING WAS NOT TO GO TO SCHOOL. IT WAS TO GO INTO AN

AUTOMOBILE PLANT AT AGE 16, AND SIX MONTHS LATER, IN A

UNIONIZED AUTOMOBILE PLANT, WITH BENEFITS, YOU EARNED

50-THOUSAND DOLLARS IN TODAY'S MONEY. TAXES WERE LOW

SINCE HALF OF THAT PAY WAS TAX-DEFERRED OR TAX FREE."

TEXT: MANUFACTURING PRODUCTION IN THIS COUNTRY IS GROWING

FASTER THAN IT EVER HAS EXCEPT IN WARTIME, SAYS PETER

DRUCKER, BUT MANUFACTURING EMPLOYMENT IS GOING DOWN

STEADILY.

TAPE: CUT FIVE DRUCKER

"NOT BECAUSE WE HAVE AUTOMATED, BUT BECAUSE WE HAVE

RETHOUGHT, RESTRUCTURED MANUFACTURING AROUND

INFORMATION. YOU NEED NO MORE THAN ONE-QUARTER OF THE

LABOR AND YOU NEED TOTALLY DIFFERENT LABOR. YOU NEED

PEOPLE WHO HAVE A GREAT DEAL OF THEORETICAL KNOWLEDGE,

WHICH ONE CAN ONLY ACQUIRE IN SCHOOL."

TEXT: OBSERVERS SAY THE DEBATE THAT'S GOING ON IN WASHINGTON

RIGHT NOW -- CONCERNING THE GOVERNMENT'S ROLE AND SCOPE

-- IS THE MOST PROFOUND POLITICAL ISSUE IN 50 YEARS.

BUT SO FAR THERE IS NO CONSENSUS ON HOW TO TRANSLATE IT

INTO REAL CHANGE.

LAFAYETTE COLLEGE PROFESSOR JOHN KINCAID SAYS THE

CLINTON ADMINISTRATION'S DRIVE TO REFORM OR "REINVENT"

THE GOVERNMENT IS A TIMID EFFORT TO PATCH THINGS UP,

WHICH FALLS SHORT OF WHAT IS REQUIRED. IF ALL THE

PROPOSALS IDENTIFIED BY VICE PRESIDENT AL GORE IN 1993

WERE TO BE ACCEPTED BY CONGRESS, HE SAYS, THEY WOULD

ONLY RESULT IN SAVINGS OF ABOUT 12 AND A HALF BILLION

DOLLARS OVER TWO YEARS. IN THE SAME PERIOD OF TIME THE

FEDERAL GOVERNMENT WILL SPEND -- THREE TRILLION DOLLARS.

PROFESSOR KINCAID SAYS RATHER THAN SCRUTINIZING WHAT THE

FEDERAL BUREAUCRACY NEEDS IN ORDER TO PERFORM, WOULD-BE

REFORMERS SHOULD FOCUS ON HOW IT PERFORMS.

TAPE: CUT SIX KINCAID

"WE HAVE TENDED TO MEASURE ONLY INPUTS IN TERMS OF HOW

MUCH MONEY OR PERSONNEL ARE COMMITTED TO CERTAIN

PROGRAMS. WE'RE NOT VERY GOOD AT MEASURING OUTPUTS, AND

SAYING: 'HERE'S WHAT WE WANT TO ACHIEVE, AND HERE'S THE

BEST WAY TO ACHIEVE IT.' BOTH THE CONGRESS AND THE

PRESIDENT HAVE BEEN ADDRESSING THESE QUESTIONS, AND I

THINK THEY WILL CONTINUE TO DO SO TO FIND WAYS OF

FOCUSING GOVERNMENT ACTIVITY MORE ON ACTUAL PERFORMANCE

RATHER THAN INPUT."

TEXT: THE NEWLY-ELECTED SPEAKER OF THE HOUSE OF

REPRESENTATIVES, NEWT GINGRICH, STRONGLY ADVOCATES THE

RESTORATION OF "FEDERALISM" AS ENVISAGED BY THE U-S

CONSTITUTION. THE 10TH AMENDEMENT STIPULATES THAT THE

NATIONAL GOVERNMENT SHOULD HAVE LIMITED AND ENUMERATED

POWERS, AND THAT THE POWERS NOT DELEGATED TO THE FEDERAL

BUREAUCRACY BELONG TO THE STATES, OR THE PEOPLE.

SOME REPUBLICAN LAWMAKERS, WHO WOULD LIKE TO BECOME THE

ARCHITECTS OF A SMALLER, MORE EFFICIENT NATIONAL

GOVERNMENT, PROPOSE TO REDUCE THE NUMBER OF FEDERAL

EMPLOYEES BY UP TO 40 PERCENT; SLASH THE NUMBER OF

FEDERAL AGENCIES BY UP TO 50 PERCENT, AND CUT LAYERS OF

DEPARTMENTAL BUREAUCRACY BY UP TO TWO-THIRDS.

IN PETER DRUCKER'S WORDS, AMPUTATION BEFORE DIAGNOSIS IS

SOMETHING THAT SURGEONS HAVE WARNED AGAINST FOR

CENTURIES. IT IS A KNOWN FACT, HE SAYS, THAT DRASTIC

DOWNSIZING CREATES CASUALTIES WITHOUT NECESSARILY

PRODUCING RESULTS.

TAPE: CUT SEVEN DRUCKER

"PREDICTABLY, IN A YEAR FROM NOW, MAYBE SOONER, THESE

WONDERFUL PEOPLE IN WASHINGTON WILL HAVE USED THE

MEAT-AX. THE DEFICIT WILL HAVE GROWN, AND THEY HAVEN'T

COME TO GRIPS WITH THE BASIC PROBLEM. THIS IS A TIME

NOT TO CUT, BUT TO THINK."

TEXT: ACCORDING TO PROFESSOR DRUCKER, RETHINKING GOVERNMENT

WILL HAVE TO REST ON AN ANALYSIS OF WHAT WILL "ACTUALLY"

WORK RATHER THAN ON GOOD INTENTIONS AND PROMISES OF WHAT

SHOULD WORK BECAUSE ONE WOULD LIKE IT TO.

EVERY FEDERAL AGENCY, EVERY POLICY, EVERY PROGRAM, HE

SAYS, SHOULD BE CONFRONTED WITH THREE SIMPLE QUESTIONS:

"IS YOUR MISSION STILL THE RIGHT MISSION?" "IS IT STILL

WORTH DOING?" "IF WE WERE NOT ALREADY DOING THIS, WOULD

WE NOW GO INTO IT?"

IN SOME CASES, THIS ANALYSIS COULD REVEAL THAT THE

MISSION IS SIMPLY OUTDATED. FOR INSTANCE, WHEN THE

VETERANS ADMINISTRATION'S 171 HOSPITALS AND 130 NURSING

HOMES WERE FIRST ACCREDITED IN 1930, COMPETENT HOSPITALS

WERE SCARCE IN THE RURAL AREAS OR SMALL TOWNS WERE MANY

VETERANS LIVED. TODAY GOOD HOSPITALS ARE TO BE FOUND

EVERYWHERE.

ONE-HUNDRED YEARS AGO, THE UNITED STATES WAS A MAJOR

AGRICULTURAL COUNTRY. IT MADE SENSE THAT THE FEDERAL

GOVERNMENT WOULD ESTABLISH A SEPARATE DEPARTMENT OF

AGRICULTURE. TODAY, WHEN FARMERS CONSTITUTE ONLY THREE

PERCENT OF THE NATION'S POPULATION, THE CREATION OF SUCH

A HUGE DEPARTMENT WOULDN'T BE JUSTIFIED.

PROFESSOR DRUCKER SAYS THE NEW REPUBLICAN MAJORITY WILL

SOON FIND OUT THAT NEITHER MAINTAINING NOR CURTAILING

THE WELFARE STATE IS ACCEPTABLE TO THE AMERICAN PEOPLE.

TAPE: CUT EIGHT DRUCKER

"IN ECONOMIC TERMS, OUR BASIC CORE PROBLEMS ARE (THE

SO-CALLED) MIDDLE CLASS ENTITLEMENTS: SOCIAL SECURITY,

MEDICAIRE, AND SO ON. AND THOSE THIS CONGRESS ISN'T

GOING TO TACKLE. FOR THIS, YOU PROBABLY HAVE TO HAVE A

MUCH MORE SERIOUS CRISIS."

TEXT: PROFESSOR DRUCKER PREDICTS THAT CONGRESS WILL BE

CONFRONTED WITH A SERIOUS CRISIS NO LATER THAN 1997.

DUE TO A STRONG ECONOMY AND SOME BUDGET REDUCTION

MEASURES ENACTED IN 1990 AND 1993, THE FEDERAL DEFICIT

IS SHRINKING. BUT STARTING NEXT YEAR, THE RISING COST

OF HEALTH CARE PROGRAMS WILL PUSH IT AGAIN IN THE WRONG

DIRECTION. AS A CONSEQUENCE, LAWMAKERS WILL SEE THEIR

CURRENT EFFORTS QUICKLY TURN INTO POLITICAL LIABILITIES,

ESPECIALLY THE NEW SPEAKER OF THE HOUSE OF

REPRESENTATIVES, NEWT GINGRICH.

TAPE: CUT NINE DRUCKER

"I WOULDN'T BE A BIT SURPRISED IF MR. GINGRICH, A YEAR

FROM NOW, WOULD LOOK LIKE MR. CLINTON, ONLY MORE SO.

TOTALLY FRUSTRATED."

TEXT: AWARE OF THE ESCALATING COSTS OF THE GOVERNMENT'S HEALTH

PROGRAMS, HOUSE SPEAKER GINGRICH HAS ANNOUNCED THAT THE

NEW CONGRESS WILL RETHINK THESE PROGRAMS FROM THE GROUND

UP.

FOR SOME TIME NOW, VOTERS HAVE COMPLAINED ABOUT WHAT

THEY CONSIDER THE GOVERNMENT'S LACK OF FISCAL

RESPONSIBILITY. GOVERNMENT EXPERT JOHN KINCAID SAYS

PUBLIC OPINION POLLS SHOW THAT PEOPLE VIEW THE FEDERAL

INCOME TAX WITH MORE SUSPICION THAN ANY OTHER FORM OF

TAXATION.

TAPE: CUT TEN KINCAID

"MOST PEOPLE SEE THE SOCIAL SECURITY AND MEDICARE TAX, A

DEDICATED TAX EARMARKED FOR A SPECIFIC PURPOSE FROM

WHICH THEY THINK THEY WILL BENEFIT IN THE FUTURE. WHEN

THEY PAY THEIR INCOME TAX TO THE FEDERAL GOVERNMENT IN

GENERAL, AND THEY WATCH WHAT'S HAPPENING IN CONGRESS,

THEY GET VERY UPSET ABOUT THOSE PAYMENTS. SO TO THE

EXTENT THAT THE FEDERAL GOVERNMENT CUTS THE INCOME TAX

RATE, BUT INCREASE SPECIFIC TAXES THERE WILL NOT BE A

GREAT DEAL OF VOTERS RESISTANCE."

TEXT: BUT THE FEDERAL GOVERNMENT IS LIMITED IN THIS REGARD,

SAYS PROFESSOR JOHN KINCAID: IT CAN ONLY RAISE GENERAL

TAXES; IT IS NOT IN THE POSITION TO EARMARK TAXES THE

WAY STATE AND LOCAL GOVERNMENTS ARE.

TAPE: CUT ELEVEN KINCAID

"THE EXPERIENCE IN THE STATES AND MANY LOCAL GOVERNMENTS

HAS BEEN THAT IF THEY ASK THE VOTERS FOR AN INCREASE IN

THE INCOME TAX OR THE SALES TAX, THERE'S A LOT OF

RESISTANCE FROM THE VOTERS. BUT IF THEY GO TO THE

VOTERS AND THEY ASK THEM FOR A TAX INCREASE FOR

SOMETHING SPECIFIC -- TO PAY FOR WASTE-WATER TREATMENT

OR EDUCATION -- THEN THE VOTERS ARE MORE RECEPTIVE."

TEXT: THIS IS ONE OF THE REASONS WHY THE NATION'S GOVERNORS

WOULD LIKE TO REDEFINE THE PROPER BALANCE BETWEEN THE

FEDERAL AND STATE GOVERNMENTS. JOHN KINCAID SAYS THE

IMBALANCE DATES FROM THE MID-1960S, WHEN SPECIFIC

FACTORS LED TO A SIGNIFICANT INCREASE IN FEDERAL

REGULATIONS AND PROGRAMS.

TAPE: CUT TWELVE KINCAID

"ONE IS THAT THE FEDERAL GOVERNMENT HAS EXTENDED ITS

AUTHORITY INTO MANY FIELDS FOR THE PURPOSE OF PROTECTING

RIGHTS; SECOND EXAMPLE IS THE INCREASED CONCERN ABOUT

ENVIRONMENTAL PROTECTION AND THE IDEA THAT POLLUTION

CROSSES STATE LINES AND THEREFORE THE FEDERAL GOVERNMENT

SHOULD HAVE A LARGER ROLE; AND THIRDLY, THE MUCH

ACCELERATED ROLE OF THE FEDERAL GOVERNMENT IN THE

"SAFETY NET" (SOCIAL) PROGRAMS."

TEXT: IN LAST NOVEMBER ELECTIONS, REPUBLICANS NOT ONLY GAINED

CONTROL OF BOTH HOUSES OF CONGRESS, THEY ALSO CAPTURED

30 GUBERNATORIAL SEATS AND NEARLY HALF OF ALL STATE

LEGISLATURES. BUT REGARDLESS OF PARTY AFFILIATION OR

IDEOLOGY, ALL 50 GOVERNORS ARE IN AGREEMENT THESE DAYS

THAT THE COST AND INTRUSIVENESS OF THE FEDERAL

GOVERNMENT MUST BE PARED DOWN, AND THE DECISION-MAKING

PROCESS MUST MOVE CLOSER TO THE CONSTITUENTS IT AFFECTS.

(BEGIN OPT) THERE'S TALK ABOUT CALLING A "CONFERENCE OF

THE STATES," THE FIRST OF ITS KIND SINCE 1786. THE

CONFERENCE WOULD DEBATE SPECIFIC IDEAS, SUCH AS HOW TO

CUT GOVERNMENT AT ALL LEVELS, AND WOULD FORMALLY

PETITION CONGRESS TO VOTE ON ITS SUGGESTIONS. (END OPT)

PROFESSOR KINCAID SAYS THAT ENCOURAGED BY IMPROVED JOB

CREATION AND HIGHER TAX REVENUES, STATE GOVERNORS ARE

EAGER TO TRY NEW SOCIAL AND ECONOMIC EXPERIMENTS. BUT

FEARFUL THAT THE U-S CONGRESS WILL REPLACE LIBERAL

PRESCRIPTIONS WITH MORE CONSERVATIVE PROGRAMS, THE

GOVERNORS SAY THEY WOULD LIKE TO RECEIVE LUMP SUMS OF

FEDERAL MONEY -- KNOWN AS BLOCK GRANTS -- FOR PURPOSES

DEFINED BY THE FEDERAL GOVERNMENT IN ONLY THE BROADEST

TERMS.

TAPE: CUT THIRTEEN KINCAID

"I THINK THAT FOR THE MOST PART IT'S NOT SO MUCH THAT

THE STATES WANT THE FEDERAL GOVERNMENT TO GET OUT

TOTALLY AND COMPLETELY OF A VARIETY OF DIFFERENT POLICY

AREAS, BUT TO CHANGE THE WAY THE FEDERAL GOVERNMENT

BEHAVES IN THOSE POLICY AREAS."

TEXT: STATE AND LOCAL GOVERNMENTS, SAYS JOHN KINCAID, WOULD

LIKE TO SEE WASHINGTON'S COMMAND-AND-CONTROL-TYPE

REGULATIONS MUCH REDUCED. THE OLD WAY OF REGULATING, HE

SAYS, SHOULD BE REPLACED BY A NEW COOPERATION OR

PARTNERSHIP BETWEEN THE FEDERAL, STATE, AND LOCAL

GOVERNMENTS.

TAPE: CUT FOURTEEN KINCAID

"AN EXAMPLE WOULD BE THE MINUTE AND DETAILED REGULATION

THAT THE FEDERAL GOVERNMENT MAY IMPOSE ON STATE AND

LOCAL GOVERNMENTS WITH RESPECT TO ENVIRONMENTAL POLICY.

IT MAKES IT EXTREMELY DIFFICULT AND EXPENSIVE FOR STATE

AND LOCAL GOVERNMENTS TO COMPLY WITH REGULATIONS AND TO

ENGAGE IN PUBLIC WORKS CONSTRUCTION BECAUSE OF THE

NUMBER OF PERMITS, AND STUDIES, AND VARIOUS OTHER THINGS

THAT NEED TO BE DONE. SO IT DOESN'T MEAN NECESSARILY

REDUCING THE OBJECTIVE OR THE GOAL WE WANT TO ACHIEVE,

AS CHANGING THE WAY WE ACHIEVE IT."

TEXT: OBSERVERS SAY THAT TRUE DEVOLUTION INVOLVES MORE THAN

JUST SENDING A BUNCH OF FEDERAL GOVERNMENT PROGRAMS BACK

TO THE STATES AND LOCALITIES. (BEGIN OPT)

DECENTRALIZING GOVERNMENT, THEY SAY, REQUIRES THE SEARCH

FOR SOLUTIONS TO PROBLEMS NEVER ADDRESSED EFFECTIVELY BY

WASHINGTON, SOLUTIONS THAT PUT THE POWER IN THE HANDS OF

INDIVIDUALS RATHER THAN GOVERNMENT BUREAUCRATS. (END

OPT)

FOR THE REMAINDER OF THIS DECADE, DOMESTIC POLITICAL

DEBATES WILL REVOLVE AROUND THE IDEA OF RESTORING

INDIVIDUAL RESPONSIBILITY. THE NEW DEAL AND GREAT

SOCIETY PROGRAMS WERE CREATED IN THE BELIEF THAT

SOLUTIONS TO AMERICA'S PROBLEMS COULD BE FOUND IN

WASHINGTON.

TODAY 70 PERCENT OF AMERICANS REJECT THIS VIEW. THEY

FEEL THAT DECADES OF BIG GOVERNMENT SPENDING FOR VARIOUS

WELFARE PROGRAMS -- AT THE TUNE OF THREE TRILLION

DOLLARS -- HAS ONLY REPLACED THE OPPORTUNITY TO SUCCEED

IN AMERICA'S FREE, CAPITALISTIC SYSTEM WITH THE SECURITY

FROM FAILURE. THIS IN TURN HAS CREATED A MASS

DEPENDENCY: 20 MILLION PEOPLE IN THE UNITED STATES TODAY

LIVE OFF A SO-CALLED GOVERNMENT CHECK-IN-THE-MAIL

ECONOMY.

THE EMERGING CONSENSUS INDICATES THAT THE SEARCH FOR

SOLUTIONS SHOULD START WITH THE INDIVIDUAL, AND ONLY

AFTER THOSE EFFORTS PROVE INEFFECTIVE, SHOULD GOVERNMENT

PLAY A ROLE -- BEGINNING WITH THE LEVEL OF GOVERNMENT

CLOSEST TO THE PEOPLE. JOHN KINCAID SAYS THAT

TRANSLATING ALL THIS INTO A WORKABLE TREND FOR SPECIFIC

REFORMS WILL TAKE RESEARCH, IMAGINATION, PERSUASION.

TAPE: CUT FIFTEEN KINCAID

"I THINK IT'S TOO EARLY TO TELL WHETHER IT WILL SUSTAIN

ITSELF AND HOW THESE DIFFERENT PROBLEMS WILL SHAKE OUT

AND BE RESOLVED. I DON'T SENSE THAT THERE'S YET A

SUFFICIENT FEELING OF CRISIS TO FORCE ANY DEEP REFORM.

AND WE PROBABLY HAVE TO GO A FEW MORE YEARS BEFORE THAT

SENSE OF CRISIS REALLY SETTLES INTO THE VOTERS PSYCHE."

(BEGIN OPT)

TEXT: IN AN EFFORT TO CURB THE GROWTH OF THE FEDERAL DEBT,

REPUBLICANS AND DEMOCRATS IN THE HOUSE OF

REPRESENTATIVES APPROVED LAST WEEK A BALANCED BUDGET

AMENDMENT THAT WOULD DISCOURAGE CONGRESS FROM SPENDING

MORE THAN IT RAISES IN REVENUES. SHOULD THE SENATE

APPROVE IT AS WELL, THE AMENDEMENT WILL GO TO THE STATE

LEGISLATURES. IF 38 VOTE TO RATIFY, IT WILL BECOME PART

OF THE CONSTITUTION. (END OPT)

MANAGEMENT EXPERT PETER DRUCKER SAYS THAT ONE THING HAS

BECOME PAINFULLY CLEAR: A DEVELOPED COUNTRY LIKE THE

UNITED STATES CAN NEITHER EXTEND BIG GOVERNMENT -- AS

THE SO-CALLED LIBERALS WANT -- NOR ABOLISH IT AND GO

BACK TO 19TH CENTURY INNOCENCE, AS THE CONSERVATIVES

WOULD LIKE. THE REAL SOLUTION MUST BE FOUND SOMEWHERE

IN BETWEEN. OTHERWISE, SAYS MR. DRUCKER, PEOPLE WILL

LOSE RESPECT FOR THEIR GOVERNMENT.

TAPE: CUT SIXTEEN DRUCKER

"THE PEOPLE INSIDE WASHINGTON DON'T KNOW THAT YET. THAT

FRIGHTENS ME. THEY HAVE NO CONCEPTION OF THE DANGER FOR

THE FOUNDATIONS OF A FREE SOCIETY WHEN YOU NO LONGER

HAVE CITIZENS, BUT ONLY TAX PAYERS."

CART: FOCUS THEME (ESTABLISH THEN UNDER AND OUT)

ANNCR: YOU HAVE BEEN LISTENING TO FOCUS ON THE VOICE OF

AMERICA. OUR PROGRAM ON THE DEBATE REGARDING THE

FEDERAL GOVERNMENT'S SCOPE AND PURPOSE IN THE POST

COLD-WAR ERA WAS WRITTEN BY ERICA BENIS, NARRATED BY

.......................... AND DIRECTED BY

......................

NEB/EB/PCH

31-Jan-95 2:16 PM EST (1916 UTC)

NNNN

Source: Voice of America