National Governors&#039; Association Executive Committee Meeting, February 26, 1985

National Governors' Association Executive Committee Meeting, February 26, 1985

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Extent (Dublin Core): 35 Pages
File Name (Dublin Core): lead_386_028_all
Title (Dublin Core): National Governors' Association Executive Committee Meeting, February 26, 1985
Description (Dublin Core): Item includes a draft invitation and attendance lists for the meeting, correspondence to Senator Bob Dole from the National Governors' Association chairman, and NGA position statements.
Date (Dublin Core): 1985-02-26
Date Created (Dublin Core): 1985-02-26
Congress (Dublin Core): 99th (1985-1987)
Topics (Dublin Core): See all items with this value Budget deficits--United States
Policy Area (Curation): Economics and Public Finance
Creator (Dublin Core): Dole, Robert J., 1923-2021
Record Type (Dublin Core): notes (documents)
Names (Dublin Core): See all items with this value National Governors' Association; See all items with this value Carlin, John, 1940-; See all items with this value Alexander, Lamar, 1940-
Rights (Dublin Core): http://rightsstatements.org/vocab/CNE/1.0/
Language (Dublin Core): eng
Collection Finding Aid (Dublin Core): https://dolearchivecollections.ku.edu/index.php?p=collections/findingaid&id=26&q=
Physical Location (Dublin Core): Collection 007, Box 386, Folder 28
Institution (Dublin Core): Robert J. Dole Institute of Politics, University of Kansas, Lawrence, KS
Archival Collection (Dublin Core): Robert J. Dole Republican Leadership Collection, 1985-1996
Full Text (Extract Text): TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
(checked) Governor John Carlin, Kansas, Chairman
(checked) Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado - no
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
(checked) Governor Dick Thornburgh, Pennsylvania
(circled) Governor William J. Janklow, South Dakota
(checked) Governor Charles S. Robb, Virginia
(checked)Governor Thomas H. Kean, New Jersey

SENATORS
(checked) Mr. Dole (checked)
Mr. Armstrong - no drop by
(checked) Mr. Chafee - pm 3 to 3:30
(checked) Mr. Domenici - 10 more min.
Mr. Packwood no
(checked) Mr. Byrd
(checked) Mr. Chiles
(checked) Mr. Cranston
(checked) Mr. Inouye
(checked) Mr. Long
Mr. Stennis - not coming
(checked) Simpson

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 2)
BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL

Byrd = lm on recorder = Barbara 4-5556 - ind meeting cancelled
Chiles = (crossed out) N/A (end cross out) Bobby Kisch = yes
Cranston = lm on Record - Mary Lou yes? flight
Long = wcb lm yes til 3pm
Stennis = Betty Cooper (arrow) yes
Inouye Sally = Wattanabee = yes
(bracketing Stennis and Inouye) will call back with answer

(page 3)
Senator
Committee
Invited
Yes
No

(handwritten) Armstrong Chafee Dole Simpson

Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angie .
(checked) (handwritten) wcb (illegible) 3.00

Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked)

Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms
Trible
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled)
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(handwritten)
2:30 to 3:30 S-207
Budget and legislative issues
Tues, Feb. 26, 1985

(page 4)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
. Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
. Governor Charles S. Robb, Virginia
Governor Thomas H. Kean, New Jersey

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 5)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 6)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 7)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 8)
Mr. Stennis

(page 9)
MEMORANDUM OF CALL
TO: (handwritten) Joyce
YOU WERE CALLED BY- YOU WERE VISITED BY-
(handwritten) Joan Milan
OF (Organization) (handwritten) Brookings Institution
PLEASE CALL PHONE NO. CODE/EXT.
WILL CALL AGAIN IS WAITING TO SEE YOU
(checked) RETURNED YOUR CALL WISHES AN APPOINTMENT
MESSAGE (handwritten) 797-6274
RECEIVED BY DATE (handwritten) 2-26 TIME (handwritten) 2:10

(page 10)
NGA EXECUTIVE CMTE. - bipartisan meeting
Subject: Deficit reduction and frank discussion of legislative issues
Date: Tuesday Feb. 26,1985
Time:
Location: S-207

REPUBLICAN LEADERSHIP
JIM MARTIN- 624-5300 1 staff
Senator
Position
Invited
Yes
No
Armstrong (handwritten) Antionette
Policy - Chairman
(checked)
(checked)

Chafee (handwritten) Holly
Conference - Chairman 46174
(checked)
(checked)

Cochran (handwritten) Doug
Conference - Secretary

Dole
Majority Leader .
(checked)
(checked)

Heinz
Senatorial Comm. - Chairman

Simpson (handwritten) Laurie
Asst. Majority Leader 42792
(checked)

(checked)
Thurmond
President Pro Tempore

Committee Chairmen
Senator
Committee
Invited
Yes
No
Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angle .
(checked) wcb
(checked)
3.00
Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked) wcb

(checked)
Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked) wcb
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms (handwritten) Barb
Trible (handwritten) Bobbie
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled) ?
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(page 11)
TUESDAY, February 26, 1985 - S-207
National Governors' Association Executive Committee
2: 30 - 3:30 p.m.
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
SCHETTACH, RAY
MARTIN JIM
HOISTEEN, STEVE
SMITH, TERRY
KEEL HUNT

(page 12)
R. DeArment F.Y.I.
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
4:00 - JIM MARTIN RAY SCHEPPACH

January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 13)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U.S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenici, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 14)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
7 staff people from Governor's chairs around the room
10 senators
10 governors

hollow square
5 or 6 on each side of the square

ice water ice coffee-tea tab-coke cookies

783- 0180
Susan Ayde

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 15)
DRAFT January 31, 1985
Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 16)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . 202) 624-5300

(page 17)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 10, 1985
(handwritten) 1 hr.

Mr. Roderick A. DeArment
Chief of Staff
Office of the Majority Leader
United States Senate
Capitol Building, Room S-233
Washington, D.C. 20510

Dear Rod:
Congratulations on your appointment as Chief of Staff. The Governors individually and collectively can be very helpful to Senator Dole as Majority Leader. Whenever I can be of assistance, please just call.
(handwritten) budget
Governor Carlin met with Senator Dole recently and the Senator accepted an invitation to speak at the opening plenary session of the NGA Winter Meeting on Sunday, (underlined) February 24 (end underline) (crossed out) at 2:30 p.m. (end cross out) (handwritten) 3:45 (end write in) Senator Dole suggested, and Governor Carlin accepted, that the NGA Executive Committee meet with a small bipartisan group of the Senate Leadership on Tuesday, (underlined) February 26, also at 2:30 p.m. (end underline)
(handwritten) 9
We need to confirm both the details of the speech and the meeting, especially the Senate Leadership meeting. Attached is a draft list and invitation letter on my suggestions for the Leadership meeting which you can change as you please. We also need to confirm the room (S-207).
Please confirm the invitation list, room number and time so we can also send invitation letters from Governor Carlin, Chairman and Governor Alexander, Vice Chairman.
Sincerely, (signature) James L. Martin Legislative Counsel
Attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 18)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 29, 1985
Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 19)
DRAFT AGENDA

Opening Remarks
2:30 p.m.
Senator Dole
Governor Carlin

Budget Concerns
2:45 p.m.
Senator Domenici
Senator Chiles

Governors' Comments on NGA Budget Issues
Governor Alexander
Governor Thompson
Governor Lamm

Open Discussion

Concluding Comments
Senator Dole
Governor Carlin

(page 20)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U. S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole
(handwritten) table for 20

(page 21)
(handwritten) Full Cmte.
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

(handwritten) Banking?
Armstrong? OK & Leadership

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 22)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
Coffee & tea
10 Gov's S-207
20 people at table
Large conf. table
20 people
Chairs against wall for staff

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 23)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 14, 1985

The Honorable Robert Dole
Majority Leader of the Senate
U.S. Capitol, Room S-233
Washington, D.C. 20510

Dear Senator Dole:
In preparation for the (underlined) February 26 meeting at 2:30 (end underline) p.m. of the NGA Executive Committee and the Senate Leadership, as well as your opening address at the Plenary Session on (underlined) February 24 (end underline) at (crossed out) 2:30 p.m., (end cross out) (handwritten) 3:45 p.m. (end handwritten) attached is a copy of the current NGA policy statement on the federal budget and the working draft of our tax reform policy.
Our budget policy should lend strong support to the Congressional leadership as you forge deficit reduction compromises. We share the same goals for substantial economic growth, fairness and equity in budget restraint and targets for deficit reduction.
We look forward to an active role of cooperation with the Senate leadership in 1985 and our meetings in February.
Sincerely, (signature) Governor John Carlin
(signature) Governor Lamar Alexander

attachment
CC: Senate Leadership NGA Executive Committee

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 24)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at (crossed out) 2:30 p.m. (end cross out) (handwritten) 3:45 p.m. (end handwritten) on Sunday, (underlined) February 24. (end underline) The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 25)
A. - 14
NGA POSITION ON THE FEDERAL BUDGET
The nation's Governors are deeply concerned about the large federal deficits that are projected over the next five years. These deficits are estimated to increase from $189 billion in fiscal 1984 to $308 billion in 1989 if current policies are continued.
We believe it is critical that a federal deficit reduction program be enacted in 1984. While we support budget restraint and spending reductions in many areas, we have come to the conclusion that some tax increases are necessary to restore a proper balance between income and expenditures. Failure to address the problem this year will require stronger measures next year.
Our concerns focus on the following issues:
· The Economy - Deficits of the magnitude projected (5.7 percent of GNP by 1989). will significantly retard economic growth and productivity during the 1980s. By the end of the decade, the federal government will be absorbing an estimated 80 percent of the loanable funds, further driving up interest rates and diverting capital from private investment. High interest rates will maintain an overvalued dollar which in turn restrains United States exports and stimulates imports, thereby contributing to the current international trade deficit of over $70 billion in 1983. High interest rates and a strong dollar will restrain real economic growth. During the next decade, unemployment and other disruptions in the private lives of the citizens of our states will be the direct result.
· State Fiscal Condition - The fiscal condition of states in 1983 was the worst in recent memory. The national recession wreaked havoc on state after state in the early months of 1983, requiring them to enact tax increases and spending cuts. Now that the nation's economy is improving, the recovery is affecting states unevenly and slowly. Although some states are expecting temporary surpluses, most state finances are still highly constrained. In 1982 and 1983, 44 states raised taxes and 43 states initiated cost-cutting measures. Even with these tax increases, 1983 budgets are below 1981 spending levels in constant terms. Funds available to the states in future years must be used to meet pressing obligations deferred by states because of the recession - including infrastructure repair, education, environmental protection, income security, and other important initiatives funded with state revenues. States are not in a position to pick up new fiscal responsibilities from the federal government.
· Income Security and Other Critical Programs - Increased interest expenditures, higher defense spending, and growth in non-means tested entitlement are competing in the budget with funds for housing, unemployment insurance, and food, medical, and income assistance needed by people adversely affected by problems in the nation's economy. Infrastructure investment programs important to a recovery also may be affected. These activities are projected to account for a shrinking portion of the federal budget over the 1980s, a trend we believe must be stopped.

(page 26)
Accordingly, the Governors urge Congress and the Administration to determine which of the possible approaches to reducing the current and outyear deficits will be most effective and to work on a bipartisan basis to implement them. It may be necessary to convene a summit meeting or task force as suggested by the President to determine the best course; Governors are available to participate in such efforts. Beyond this, Congress may wish to consider making some procedural changes designed to assist in controlling future spending, such as a closer review of the credit and capital budgets, making the first budget resolution binding, implementing biennial appropriations, using an omnibus appropriation bill, and instituting line item veto authority for the President. As a first step, we urge Congress to complete work on the revenue and spending measures contained in S. 2062 and H.R. 4169 that were approved by the committees to comply with the FY 1984 reconciliation instructions, excluding the proposed reductions in the Medicare part B deductible, AFDC, and SSI programs. (This would save approximately $27 billion over three years.)
Recommended Budget Guidelines
In identifying budget changes, Congress and the Administration are urged to consider the following general guidelines:
1. A goal of eliminating the deficit in its entirety should be adopted. Congress and the Administration should implement long-term measures now to achieve this target.
2. An interim goal of reducing the projected deficit to approximately 2 percent of GNP by 1989 should be adopted. Such a strategy would eliminate the structural deficit and would reduce the projected fiscal year 1989 deficit from $308 to $120 billion, a reduction of $188 billion by that year.
3. Policy changes should be enacted that share the burden among national defense, domestic spending and revenue increases, which do not unfairly burden already hard pressed low and middle income Americans.
4. Investment in long-run economic growth should rank with an adequate national defense and protecting needy persons as a high federal budget priority.
We offer the following specific guidelines:
1. Non-defense discretionary spending: Restrict the 1985-1989 increases to three-fourths the rate of inflation. This category includes grants to state and local governments, assistance to business and commerce, veterans' health care, environmental regulation, research and development, economic and military assistance to foreign governments, and most of the cost to operate the various branches of the federal government (a reduction in 1989 of $12 billion from projected spending of $200 billion). Any increases within this category should concentrate on the investment components of the budget, including grants for infrastructure, major environmental protections, education and job training, and federal initiatives supporting basic research and development.
2. Selected means tested entitlement programs: Provide full funding for these programs: AFDC, food stamps, Title XX, medicaid, SSI, child nutrition, and

(page 27)
child welfare services (no reduction from projected spending in 1989 of $74 billion).
3. Other entitlement programs: Restrain the growth in these entitlement programs, which are projected to increase 43 percent between 1984 and 1989. Included in this category are the various medical insurance, social security, disability, farm price support, and retirement programs funded by the federal government. Health care cost containment, federal retirement programs, and automatic cost of living adjustments should be targeted for review, although care must be taken to preserve benefits for low income citizens (a reduction in 1989 of $25 billion from projected spending of $490 billion.)
4. National defense: Limit national defense to between 2 and 4 percent real growth in appropriations over the 1985-1989 period. Since defense spending has increased almost 51 percent between 1981 and 1984, some slowing of this rate may be appropriate to maintain cost-effectiveness in weapons systems and other procurement (a reduction in 1989 of $30 billion from projected spending of $408 billion).
5. Revenues: Increase revenues by approximately 5 percent over the 1985-1989 period in order to attain the goal of a deficit close to 2 percent of GNP by 1989. (Revenues have decreased as a percentage of GNP from 20.8 percent in 1981 to 18.6 percent in 1983 and are projected to rise to 18.9 percent by 1989.) An increase of this magnitude over the period represents restoration of about one-fourth of the tax changes enacted in the 1981 and 1982 tax bills. To increase revenues, priority should be given to broadening the tax base so that the tax code becomes simpler and more efficient and so that reasonable tax rates can be maintained (an increase in 1989 of $91 billion over projected revenues of $1 trillion).
Budget Targets
In order to assure a commitment to deficit reductions, the Governors urge Congress and the Administration to agree on specific bipartisan deficit targets for each of the next five fiscal years. These deficit targets should represent a downward glide path from approximately $197 billion in 1985 to 2 percent of GNP by 1989. The targets could be part of a summit task force or commission agreement. Congress and the President should work together to approve FY 1985 appropriations, tax, and reconciliation legislation consistent with the established targets. As a first step, the Governors urge enactment this year of a 3 year $100 billion deficit reduction "down payment."
Legislation should be enacted to freeze the implementation of indexing the income tax and COLAs unless the budget adopted by Congress is consistent with the agreed upon deficit targets.
Summary of Budget Guidelines
Under current policy, the deficits over the 1985-1989 fiscal year period will total over $1.2 trillion, or approximately double the current federal debt outstanding. Under the NGA proposed guidelines, the deficit over this period would be reduced by $460 billion, including a $183 billion reduction in non-defense programs and interest, $60 billion in defense reductions, and $217 billion in tax increases. The NGA budget policy guidelines provide for a "downward glide path" toward a deficit of 2 percent of GNP by fiscal year

(page 28)
1989. This would leave a deficit of about $120 billion in fiscal year 1989, a $188 billion reduction from the baseline estimate for the deficit in that year.
The ultimate goal which the NGA recommends is the complete elimination of the deficit. Congress and the Administration should adopt a coherent long-term strategy that achieves this ultimate goal and meets the 1989 objective.
Deficit Reductions (Billion of dollars by fiscal year)

1985
1986
1987
1988
1989
Projected Deficits
197
217
245
272
308
Total Deficit Reduction
22
43
78
129
188
Remaining Deficit
176
174
167
143
120

Adopted February 28, 1984

(page 29)
WORKING DRAFT
Executive Committee National Governors' Association
November 29, 1984

NGA TAX POLICY STATEMENT
The Governors have a strong interest in the efficiency, fairness and revenue raising capacity of the federal tax system. Federal tax policy is critical to national productivity and thus to the growth in output and real income. These in turn have a direct effect on job creation and the growth in state tax revenues over the long run. In addition, state tax policy is closely linked to federal policy; thirty-three states currently use either federal adjusted gross income or federal tax liability as the state tax base for personal income taxes. A similar federal/state linkage exists for many state corporate taxes.
The current income tax system suffers from three basic problems: it is complex; it is inefficient; and it is unfair. While it is true that each of the 105 so-called "tax expenditures" has a rational justification on an individual basis, taken as a whole, they severely weaken the efficiency and fairness of the entire system.
The tax expenditures make the code difficult to comply with and expensive to administer. Today's taxpayer must navigate through a 1040 form which has eight income adjustments and seven tax credits, most of which have separate supporting forms in addition to those for deductions, capital gains, dividends and the alternative minimum tax. The IRS reports that in 1982 more than 40 percent of all taxpayers resorted to professional help and that more than 263,000 tax shelter cases are presently in some state of audit, appeal or litigation. Tax expenditures also make the code inefficient by both misallocating resources and keeping marginal tax rates high -- this adversely impacts incentives to work, save and invest. Furthermore, tax expenditures make the code unfair. By creating exemptions or deductions for certain types of income, such as in-kind or accrued but unrealized income, individuals with similar yearly incomes pay different taxes. Moreover, the high marginal tax rate encourages tax evasion; the gap between what people and corporations owe and what they actually pay now approaches 100 billion dollars per year.
Given these serious deficiencies in our present tax code, it is time to reform the federal tax system. The reform, however, should be revenue neutral, and considered separate from the issue of reducing the federal deficit. In the interest of strengthening the federal tax system, and as partners with the federal government in promoting fiscal stability and insuring adequate revenue-raising capacity, the Governors offer the following recommendations:
A modified flat tax is the best alternative for strengthening the federal tax system. Broadening the tax base would change the tax system primarily by conforming income subject to tax more closely to income as most citizens understand it. Base broadening would allow a significant reduction in tax rates and would: increase the fairness of the federal tax system; improve incentives to work, save and invest; reduce incentives for tax avoidance and evasion and thus lower the cost and increase the effectiveness of enforcement; and make the tax system less complex by reducing the number of exclusions, deductions and credits. These advantages will also be reflected in most state income tax systems as states generally follow federal definitions of income.

(page 30)
2
The modified flat tax supported by the Governors includes the following:
The base broadening that accompanies the change to a modified flat tax should be substantial enough to reduce the marginal tax rates by at least 15 percentage points, for example, from a top rate of 50 percent to 35 percent. Anything less would discourage groups from cooperating to achieve the goal of tax reform. All exclusions, deductions, and credits should be reviewed for inclusion in the tax base. The Governors believe, however, that it is appropriate to retain, with possible small limitations, the deductions for charitable contributions, interest on home mortgages, extraordinary medical expenses, and the exclusion of pensions and savings for retirement.
Any changes to the federal tax system which would specifically hinder the ability of states and local governments to raise revenues is strongly opposed by the Governors. As a significant portion of all state and local expenditures are currently financed through bonds, the Governors strongly believe that any reform must not affect the current exclusions of state and local interest payments. To the extent, and only to the extent, that the proposed base broadening is significant, the Governors are, however, willing to consider some limited modification of the other tax expenditures that benefit state and local governments. However, any adjustment of state and local tax expenditures must minimize differential impacts across states.
The reduced marginal rates that accompany the proposed base broadening should not reduce the current progressivity of the federal tax system.
Finally, the modified flat tax should not result in any further reduction in the percentage of federal revenues projected from corporate income taxes. Corporate tax reform should be careful to support state efforts for economic growth and job creation. We believe that base broadening and simplification is a reasonable basis for the reform of corporate taxes as well, but have not addressed details of such revision. As general principles, the corporate tax reform should discourage economically inefficient transactions, reduce tax expenditures, and generally be consistent with the changes made for individuals. Base broadening may also permit a reduction in rates while retaining the current division of taxes between business and individuals.
While the Governors support a modified flat rate tax, they are strongly opposed to a national value-added or sales tax that would be used in place of all or part of the current income tax system. These taxes intrude into a tax area that has traditionally been reserved for and relied upon by state and local governments. If enacted, either of these taxes could seriously threaten the ability of state and local governments to raise revenues.
In conclusion, the Governors believe strongly that the tax system can be made more efficient and equitable and less complex by broadening the tax base. It is important, however, that tax changes be made only with close consultation with state and local government since federal tax changes have significant impacts on these other levels of government. The Governors look forward to working with the Administration and the Congress in partnership on this critical national priority of tax reform.

(page 31)
National Governors' Association
(handwritten) Joyce
Tuesday, February 26 Tues. (end handwritten)
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole (underlined) suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group (end underline) of the Senate Leadership on the afternoon (2:30 p.m.) of (underlined) Tuesday, February (end underline) 26 to (underlined) discuss joint action on deficit reduction. (end underline)
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel

attachments

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 32)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 33)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 34)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 35)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leadership. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300; TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
(checked) Governor John Carlin, Kansas, Chairman
(checked) Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado - no
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
(checked) Governor Dick Thornburgh, Pennsylvania
(circled) Governor William J. Janklow, South Dakota
(checked) Governor Charles S. Robb, Virginia
(checked)Governor Thomas H. Kean, New Jersey

SENATORS
(checked) Mr. Dole (checked)
Mr. Armstrong - no drop by
(checked) Mr. Chafee - pm 3 to 3:30
(checked) Mr. Domenici - 10 more min.
Mr. Packwood no
(checked) Mr. Byrd
(checked) Mr. Chiles
(checked) Mr. Cranston
(checked) Mr. Inouye
(checked) Mr. Long
Mr. Stennis - not coming
(checked) Simpson

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 2)
BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL

Byrd = lm on recorder = Barbara 4-5556 - ind meeting cancelled
Chiles = (crossed out) N/A (end cross out) Bobby Kisch = yes
Cranston = lm on Record - Mary Lou yes? flight
Long = wcb lm yes til 3pm
Stennis = Betty Cooper (arrow) yes
Inouye Sally = Wattanabee = yes
(bracketing Stennis and Inouye) will call back with answer

(page 3)
Senator
Committee
Invited
Yes
No

(handwritten) Armstrong Chafee Dole Simpson

Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angie .
(checked) (handwritten) wcb (illegible) 3.00

Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked)

Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms
Trible
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled)
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(handwritten)
2:30 to 3:30 S-207
Budget and legislative issues
Tues, Feb. 26, 1985

(page 4)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
. Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
. Governor Charles S. Robb, Virginia
Governor Thomas H. Kean, New Jersey

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 5)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 6)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 7)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 8)
Mr. Stennis

(page 9)
MEMORANDUM OF CALL
TO: (handwritten) Joyce
YOU WERE CALLED BY- YOU WERE VISITED BY-
(handwritten) Joan Milan
OF (Organization) (handwritten) Brookings Institution
PLEASE CALL PHONE NO. CODE/EXT.
WILL CALL AGAIN IS WAITING TO SEE YOU
(checked) RETURNED YOUR CALL WISHES AN APPOINTMENT
MESSAGE (handwritten) 797-6274
RECEIVED BY DATE (handwritten) 2-26 TIME (handwritten) 2:10

(page 10)
NGA EXECUTIVE CMTE. - bipartisan meeting
Subject: Deficit reduction and frank discussion of legislative issues
Date: Tuesday Feb. 26,1985
Time:
Location: S-207

REPUBLICAN LEADERSHIP
JIM MARTIN- 624-5300 1 staff
Senator
Position
Invited
Yes
No
Armstrong (handwritten) Antionette
Policy - Chairman
(checked)
(checked)

Chafee (handwritten) Holly
Conference - Chairman 46174
(checked)
(checked)

Cochran (handwritten) Doug
Conference - Secretary

Dole
Majority Leader .
(checked)
(checked)

Heinz
Senatorial Comm. - Chairman

Simpson (handwritten) Laurie
Asst. Majority Leader 42792
(checked)

(checked)
Thurmond
President Pro Tempore

Committee Chairmen
Senator
Committee
Invited
Yes
No
Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angle .
(checked) wcb
(checked)
3.00
Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked) wcb

(checked)
Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked) wcb
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms (handwritten) Barb
Trible (handwritten) Bobbie
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled) ?
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(page 11)
TUESDAY, February 26, 1985 - S-207
National Governors' Association Executive Committee
2: 30 - 3:30 p.m.
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
SCHETTACH, RAY
MARTIN JIM
HOISTEEN, STEVE
SMITH, TERRY
KEEL HUNT

(page 12)
R. DeArment F.Y.I.
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
4:00 - JIM MARTIN RAY SCHEPPACH

January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 13)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U.S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenici, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 14)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
7 staff people from Governor's chairs around the room
10 senators
10 governors

hollow square
5 or 6 on each side of the square

ice water ice coffee-tea tab-coke cookies

783- 0180
Susan Ayde

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 15)
DRAFT January 31, 1985
Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 16)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . 202) 624-5300

(page 17)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 10, 1985
(handwritten) 1 hr.

Mr. Roderick A. DeArment
Chief of Staff
Office of the Majority Leader
United States Senate
Capitol Building, Room S-233
Washington, D.C. 20510

Dear Rod:
Congratulations on your appointment as Chief of Staff. The Governors individually and collectively can be very helpful to Senator Dole as Majority Leader. Whenever I can be of assistance, please just call.
(handwritten) budget
Governor Carlin met with Senator Dole recently and the Senator accepted an invitation to speak at the opening plenary session of the NGA Winter Meeting on Sunday, (underlined) February 24 (end underline) (crossed out) at 2:30 p.m. (end cross out) (handwritten) 3:45 (end write in) Senator Dole suggested, and Governor Carlin accepted, that the NGA Executive Committee meet with a small bipartisan group of the Senate Leadership on Tuesday, (underlined) February 26, also at 2:30 p.m. (end underline)
(handwritten) 9
We need to confirm both the details of the speech and the meeting, especially the Senate Leadership meeting. Attached is a draft list and invitation letter on my suggestions for the Leadership meeting which you can change as you please. We also need to confirm the room (S-207).
Please confirm the invitation list, room number and time so we can also send invitation letters from Governor Carlin, Chairman and Governor Alexander, Vice Chairman.
Sincerely, (signature) James L. Martin Legislative Counsel
Attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 18)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 29, 1985
Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 19)
DRAFT AGENDA

Opening Remarks
2:30 p.m.
Senator Dole
Governor Carlin

Budget Concerns
2:45 p.m.
Senator Domenici
Senator Chiles

Governors' Comments on NGA Budget Issues
Governor Alexander
Governor Thompson
Governor Lamm

Open Discussion

Concluding Comments
Senator Dole
Governor Carlin

(page 20)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U. S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole
(handwritten) table for 20

(page 21)
(handwritten) Full Cmte.
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

(handwritten) Banking?
Armstrong? OK & Leadership

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 22)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
Coffee & tea
10 Gov's S-207
20 people at table
Large conf. table
20 people
Chairs against wall for staff

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 23)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 14, 1985

The Honorable Robert Dole
Majority Leader of the Senate
U.S. Capitol, Room S-233
Washington, D.C. 20510

Dear Senator Dole:
In preparation for the (underlined) February 26 meeting at 2:30 (end underline) p.m. of the NGA Executive Committee and the Senate Leadership, as well as your opening address at the Plenary Session on (underlined) February 24 (end underline) at (crossed out) 2:30 p.m., (end cross out) (handwritten) 3:45 p.m. (end handwritten) attached is a copy of the current NGA policy statement on the federal budget and the working draft of our tax reform policy.
Our budget policy should lend strong support to the Congressional leadership as you forge deficit reduction compromises. We share the same goals for substantial economic growth, fairness and equity in budget restraint and targets for deficit reduction.
We look forward to an active role of cooperation with the Senate leadership in 1985 and our meetings in February.
Sincerely, (signature) Governor John Carlin
(signature) Governor Lamar Alexander

attachment
CC: Senate Leadership NGA Executive Committee

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 24)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at (crossed out) 2:30 p.m. (end cross out) (handwritten) 3:45 p.m. (end handwritten) on Sunday, (underlined) February 24. (end underline) The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 25)
A. - 14
NGA POSITION ON THE FEDERAL BUDGET
The nation's Governors are deeply concerned about the large federal deficits that are projected over the next five years. These deficits are estimated to increase from $189 billion in fiscal 1984 to $308 billion in 1989 if current policies are continued.
We believe it is critical that a federal deficit reduction program be enacted in 1984. While we support budget restraint and spending reductions in many areas, we have come to the conclusion that some tax increases are necessary to restore a proper balance between income and expenditures. Failure to address the problem this year will require stronger measures next year.
Our concerns focus on the following issues:
· The Economy - Deficits of the magnitude projected (5.7 percent of GNP by 1989). will significantly retard economic growth and productivity during the 1980s. By the end of the decade, the federal government will be absorbing an estimated 80 percent of the loanable funds, further driving up interest rates and diverting capital from private investment. High interest rates will maintain an overvalued dollar which in turn restrains United States exports and stimulates imports, thereby contributing to the current international trade deficit of over $70 billion in 1983. High interest rates and a strong dollar will restrain real economic growth. During the next decade, unemployment and other disruptions in the private lives of the citizens of our states will be the direct result.
· State Fiscal Condition - The fiscal condition of states in 1983 was the worst in recent memory. The national recession wreaked havoc on state after state in the early months of 1983, requiring them to enact tax increases and spending cuts. Now that the nation's economy is improving, the recovery is affecting states unevenly and slowly. Although some states are expecting temporary surpluses, most state finances are still highly constrained. In 1982 and 1983, 44 states raised taxes and 43 states initiated cost-cutting measures. Even with these tax increases, 1983 budgets are below 1981 spending levels in constant terms. Funds available to the states in future years must be used to meet pressing obligations deferred by states because of the recession - including infrastructure repair, education, environmental protection, income security, and other important initiatives funded with state revenues. States are not in a position to pick up new fiscal responsibilities from the federal government.
· Income Security and Other Critical Programs - Increased interest expenditures, higher defense spending, and growth in non-means tested entitlement are competing in the budget with funds for housing, unemployment insurance, and food, medical, and income assistance needed by people adversely affected by problems in the nation's economy. Infrastructure investment programs important to a recovery also may be affected. These activities are projected to account for a shrinking portion of the federal budget over the 1980s, a trend we believe must be stopped.

(page 26)
Accordingly, the Governors urge Congress and the Administration to determine which of the possible approaches to reducing the current and outyear deficits will be most effective and to work on a bipartisan basis to implement them. It may be necessary to convene a summit meeting or task force as suggested by the President to determine the best course; Governors are available to participate in such efforts. Beyond this, Congress may wish to consider making some procedural changes designed to assist in controlling future spending, such as a closer review of the credit and capital budgets, making the first budget resolution binding, implementing biennial appropriations, using an omnibus appropriation bill, and instituting line item veto authority for the President. As a first step, we urge Congress to complete work on the revenue and spending measures contained in S. 2062 and H.R. 4169 that were approved by the committees to comply with the FY 1984 reconciliation instructions, excluding the proposed reductions in the Medicare part B deductible, AFDC, and SSI programs. (This would save approximately $27 billion over three years.)
Recommended Budget Guidelines
In identifying budget changes, Congress and the Administration are urged to consider the following general guidelines:
1. A goal of eliminating the deficit in its entirety should be adopted. Congress and the Administration should implement long-term measures now to achieve this target.
2. An interim goal of reducing the projected deficit to approximately 2 percent of GNP by 1989 should be adopted. Such a strategy would eliminate the structural deficit and would reduce the projected fiscal year 1989 deficit from $308 to $120 billion, a reduction of $188 billion by that year.
3. Policy changes should be enacted that share the burden among national defense, domestic spending and revenue increases, which do not unfairly burden already hard pressed low and middle income Americans.
4. Investment in long-run economic growth should rank with an adequate national defense and protecting needy persons as a high federal budget priority.
We offer the following specific guidelines:
1. Non-defense discretionary spending: Restrict the 1985-1989 increases to three-fourths the rate of inflation. This category includes grants to state and local governments, assistance to business and commerce, veterans' health care, environmental regulation, research and development, economic and military assistance to foreign governments, and most of the cost to operate the various branches of the federal government (a reduction in 1989 of $12 billion from projected spending of $200 billion). Any increases within this category should concentrate on the investment components of the budget, including grants for infrastructure, major environmental protections, education and job training, and federal initiatives supporting basic research and development.
2. Selected means tested entitlement programs: Provide full funding for these programs: AFDC, food stamps, Title XX, medicaid, SSI, child nutrition, and

(page 27)
child welfare services (no reduction from projected spending in 1989 of $74 billion).
3. Other entitlement programs: Restrain the growth in these entitlement programs, which are projected to increase 43 percent between 1984 and 1989. Included in this category are the various medical insurance, social security, disability, farm price support, and retirement programs funded by the federal government. Health care cost containment, federal retirement programs, and automatic cost of living adjustments should be targeted for review, although care must be taken to preserve benefits for low income citizens (a reduction in 1989 of $25 billion from projected spending of $490 billion.)
4. National defense: Limit national defense to between 2 and 4 percent real growth in appropriations over the 1985-1989 period. Since defense spending has increased almost 51 percent between 1981 and 1984, some slowing of this rate may be appropriate to maintain cost-effectiveness in weapons systems and other procurement (a reduction in 1989 of $30 billion from projected spending of $408 billion).
5. Revenues: Increase revenues by approximately 5 percent over the 1985-1989 period in order to attain the goal of a deficit close to 2 percent of GNP by 1989. (Revenues have decreased as a percentage of GNP from 20.8 percent in 1981 to 18.6 percent in 1983 and are projected to rise to 18.9 percent by 1989.) An increase of this magnitude over the period represents restoration of about one-fourth of the tax changes enacted in the 1981 and 1982 tax bills. To increase revenues, priority should be given to broadening the tax base so that the tax code becomes simpler and more efficient and so that reasonable tax rates can be maintained (an increase in 1989 of $91 billion over projected revenues of $1 trillion).
Budget Targets
In order to assure a commitment to deficit reductions, the Governors urge Congress and the Administration to agree on specific bipartisan deficit targets for each of the next five fiscal years. These deficit targets should represent a downward glide path from approximately $197 billion in 1985 to 2 percent of GNP by 1989. The targets could be part of a summit task force or commission agreement. Congress and the President should work together to approve FY 1985 appropriations, tax, and reconciliation legislation consistent with the established targets. As a first step, the Governors urge enactment this year of a 3 year $100 billion deficit reduction "down payment."
Legislation should be enacted to freeze the implementation of indexing the income tax and COLAs unless the budget adopted by Congress is consistent with the agreed upon deficit targets.
Summary of Budget Guidelines
Under current policy, the deficits over the 1985-1989 fiscal year period will total over $1.2 trillion, or approximately double the current federal debt outstanding. Under the NGA proposed guidelines, the deficit over this period would be reduced by $460 billion, including a $183 billion reduction in non-defense programs and interest, $60 billion in defense reductions, and $217 billion in tax increases. The NGA budget policy guidelines provide for a "downward glide path" toward a deficit of 2 percent of GNP by fiscal year

(page 28)
1989. This would leave a deficit of about $120 billion in fiscal year 1989, a $188 billion reduction from the baseline estimate for the deficit in that year.
The ultimate goal which the NGA recommends is the complete elimination of the deficit. Congress and the Administration should adopt a coherent long-term strategy that achieves this ultimate goal and meets the 1989 objective.
Deficit Reductions (Billion of dollars by fiscal year)

1985
1986
1987
1988
1989
Projected Deficits
197
217
245
272
308
Total Deficit Reduction
22
43
78
129
188
Remaining Deficit
176
174
167
143
120

Adopted February 28, 1984

(page 29)
WORKING DRAFT
Executive Committee National Governors' Association
November 29, 1984

NGA TAX POLICY STATEMENT
The Governors have a strong interest in the efficiency, fairness and revenue raising capacity of the federal tax system. Federal tax policy is critical to national productivity and thus to the growth in output and real income. These in turn have a direct effect on job creation and the growth in state tax revenues over the long run. In addition, state tax policy is closely linked to federal policy; thirty-three states currently use either federal adjusted gross income or federal tax liability as the state tax base for personal income taxes. A similar federal/state linkage exists for many state corporate taxes.
The current income tax system suffers from three basic problems: it is complex; it is inefficient; and it is unfair. While it is true that each of the 105 so-called "tax expenditures" has a rational justification on an individual basis, taken as a whole, they severely weaken the efficiency and fairness of the entire system.
The tax expenditures make the code difficult to comply with and expensive to administer. Today's taxpayer must navigate through a 1040 form which has eight income adjustments and seven tax credits, most of which have separate supporting forms in addition to those for deductions, capital gains, dividends and the alternative minimum tax. The IRS reports that in 1982 more than 40 percent of all taxpayers resorted to professional help and that more than 263,000 tax shelter cases are presently in some state of audit, appeal or litigation. Tax expenditures also make the code inefficient by both misallocating resources and keeping marginal tax rates high -- this adversely impacts incentives to work, save and invest. Furthermore, tax expenditures make the code unfair. By creating exemptions or deductions for certain types of income, such as in-kind or accrued but unrealized income, individuals with similar yearly incomes pay different taxes. Moreover, the high marginal tax rate encourages tax evasion; the gap between what people and corporations owe and what they actually pay now approaches 100 billion dollars per year.
Given these serious deficiencies in our present tax code, it is time to reform the federal tax system. The reform, however, should be revenue neutral, and considered separate from the issue of reducing the federal deficit. In the interest of strengthening the federal tax system, and as partners with the federal government in promoting fiscal stability and insuring adequate revenue-raising capacity, the Governors offer the following recommendations:
A modified flat tax is the best alternative for strengthening the federal tax system. Broadening the tax base would change the tax system primarily by conforming income subject to tax more closely to income as most citizens understand it. Base broadening would allow a significant reduction in tax rates and would: increase the fairness of the federal tax system; improve incentives to work, save and invest; reduce incentives for tax avoidance and evasion and thus lower the cost and increase the effectiveness of enforcement; and make the tax system less complex by reducing the number of exclusions, deductions and credits. These advantages will also be reflected in most state income tax systems as states generally follow federal definitions of income.

(page 30)
2
The modified flat tax supported by the Governors includes the following:
The base broadening that accompanies the change to a modified flat tax should be substantial enough to reduce the marginal tax rates by at least 15 percentage points, for example, from a top rate of 50 percent to 35 percent. Anything less would discourage groups from cooperating to achieve the goal of tax reform. All exclusions, deductions, and credits should be reviewed for inclusion in the tax base. The Governors believe, however, that it is appropriate to retain, with possible small limitations, the deductions for charitable contributions, interest on home mortgages, extraordinary medical expenses, and the exclusion of pensions and savings for retirement.
Any changes to the federal tax system which would specifically hinder the ability of states and local governments to raise revenues is strongly opposed by the Governors. As a significant portion of all state and local expenditures are currently financed through bonds, the Governors strongly believe that any reform must not affect the current exclusions of state and local interest payments. To the extent, and only to the extent, that the proposed base broadening is significant, the Governors are, however, willing to consider some limited modification of the other tax expenditures that benefit state and local governments. However, any adjustment of state and local tax expenditures must minimize differential impacts across states.
The reduced marginal rates that accompany the proposed base broadening should not reduce the current progressivity of the federal tax system.
Finally, the modified flat tax should not result in any further reduction in the percentage of federal revenues projected from corporate income taxes. Corporate tax reform should be careful to support state efforts for economic growth and job creation. We believe that base broadening and simplification is a reasonable basis for the reform of corporate taxes as well, but have not addressed details of such revision. As general principles, the corporate tax reform should discourage economically inefficient transactions, reduce tax expenditures, and generally be consistent with the changes made for individuals. Base broadening may also permit a reduction in rates while retaining the current division of taxes between business and individuals.
While the Governors support a modified flat rate tax, they are strongly opposed to a national value-added or sales tax that would be used in place of all or part of the current income tax system. These taxes intrude into a tax area that has traditionally been reserved for and relied upon by state and local governments. If enacted, either of these taxes could seriously threaten the ability of state and local governments to raise revenues.
In conclusion, the Governors believe strongly that the tax system can be made more efficient and equitable and less complex by broadening the tax base. It is important, however, that tax changes be made only with close consultation with state and local government since federal tax changes have significant impacts on these other levels of government. The Governors look forward to working with the Administration and the Congress in partnership on this critical national priority of tax reform.

(page 31)
National Governors' Association
(handwritten) Joyce
Tuesday, February 26 Tues. (end handwritten)
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole (underlined) suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group (end underline) of the Senate Leadership on the afternoon (2:30 p.m.) of (underlined) Tuesday, February (end underline) 26 to (underlined) discuss joint action on deficit reduction. (end underline)
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel

attachments

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 32)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 33)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 34)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 35)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leadership. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300; TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
(checked) Governor John Carlin, Kansas, Chairman
(checked) Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado - no
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
(checked) Governor Dick Thornburgh, Pennsylvania
(circled) Governor William J. Janklow, South Dakota
(checked) Governor Charles S. Robb, Virginia
(checked)Governor Thomas H. Kean, New Jersey

SENATORS
(checked) Mr. Dole (checked)
Mr. Armstrong - no drop by
(checked) Mr. Chafee - pm 3 to 3:30
(checked) Mr. Domenici - 10 more min.
Mr. Packwood no
(checked) Mr. Byrd
(checked) Mr. Chiles
(checked) Mr. Cranston
(checked) Mr. Inouye
(checked) Mr. Long
Mr. Stennis - not coming
(checked) Simpson

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 2)
BOB DOLE
KANSAS
United States Senate
OFFICE OF MAJORITY LEADER
S-230 THE CAPITOL

Byrd = lm on recorder = Barbara 4-5556 - ind meeting cancelled
Chiles = (crossed out) N/A (end cross out) Bobby Kisch = yes
Cranston = lm on Record - Mary Lou yes? flight
Long = wcb lm yes til 3pm
Stennis = Betty Cooper (arrow) yes
Inouye Sally = Wattanabee = yes
(bracketing Stennis and Inouye) will call back with answer

(page 3)
Senator
Committee
Invited
Yes
No

(handwritten) Armstrong Chafee Dole Simpson

Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angie .
(checked) (handwritten) wcb (illegible) 3.00

Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked)

Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms
Trible
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled)
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(handwritten)
2:30 to 3:30 S-207
Budget and legislative issues
Tues, Feb. 26, 1985

(page 4)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
. Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
NO Governor Richard D. Lamm, Colorado
· Governor Graham, Florida
NO Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
. Governor Charles S. Robb, Virginia
Governor Thomas H. Kean, New Jersey

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
(crossed out) Keel Hunt
Alie Randlett

(page 5)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 6)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 7)
TUESDAY, FEBRUARY 26, 1985 - S 207
National Governors' Association Executive Committee
2:30 - 3:30 p.m.

GOVERNORS
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

SENATORS
Mr. Dole
Mr. Armstrong
Mr. Chafee
Mr. Domenici
Mr. Packwood
Mr. Byrd
Mr. Chiles
Mr. Cranston
Mr. Inouye
Mr. Long
Mr. Stennis

NGA STAFF
Ray Scheppach
Jim Martin
Steve Holsteen
Terry Smith
Keel Hunt

(page 8)
Mr. Stennis

(page 9)
MEMORANDUM OF CALL
TO: (handwritten) Joyce
YOU WERE CALLED BY- YOU WERE VISITED BY-
(handwritten) Joan Milan
OF (Organization) (handwritten) Brookings Institution
PLEASE CALL PHONE NO. CODE/EXT.
WILL CALL AGAIN IS WAITING TO SEE YOU
(checked) RETURNED YOUR CALL WISHES AN APPOINTMENT
MESSAGE (handwritten) 797-6274
RECEIVED BY DATE (handwritten) 2-26 TIME (handwritten) 2:10

(page 10)
NGA EXECUTIVE CMTE. - bipartisan meeting
Subject: Deficit reduction and frank discussion of legislative issues
Date: Tuesday Feb. 26,1985
Time:
Location: S-207

REPUBLICAN LEADERSHIP
JIM MARTIN- 624-5300 1 staff
Senator
Position
Invited
Yes
No
Armstrong (handwritten) Antionette
Policy - Chairman
(checked)
(checked)

Chafee (handwritten) Holly
Conference - Chairman 46174
(checked)
(checked)

Cochran (handwritten) Doug
Conference - Secretary

Dole
Majority Leader .
(checked)
(checked)

Heinz
Senatorial Comm. - Chairman

Simpson (handwritten) Laurie
Asst. Majority Leader 42792
(checked)

(checked)
Thurmond
President Pro Tempore

Committee Chairmen
Senator
Committee
Invited
Yes
No
Abdnor
Joint Economic

Andrews
Select - Indian Affairs

Danforth
Commerce

Domenici
Budget (handwritten) Angle .
(checked) wcb
(checked)
3.00
Durenberger
Intelligence

Garn
Banking

Goldwater
Armed Services

Hatch
Labor

Hatfield
Appropriations .
(checked) wcb

(checked)
Heinz
Special - Aging

Helms
Agriculture

Lugar
Foreign Relations

Mathias
Rules & Administration

McClure
Energy

Murkowski
Veterans Affairs

Packwood
Finance
(checked) wcb
(checked)

Roth
Governmental Affairs

Rudman
Select - Ethics

Stafford
Environment

Thurmond
Judiciary

Weicker
Small Business

Republicans
Boschwitz
Cohen
D'Amato
Denton
East
Evans
Gorton
Gramm
Grassley
Hawkins
Hecht
Humphrey
Kassebaum
Kasten
Laxalt
Mattingly
McConnell
Nickles
Pressler
Quayle
Specter
Stevens
Symms (handwritten) Barb
Trible (handwritten) Bobbie
Wallop
Warner
Wilson

Democrats
Baucus
Bentsen
Biden
Bingaman
Boren
Bradley
Bumpers
Burdick
Byrd (checked) .
Chiles (checked circled) .
Cranston (checked circled) ?
DeConcini
Dixon
Dodd
Eagleton
Exon
Ford
Glenn
Gore
Harkin
Hart
Heflin
Hollings
Inouye (checked circled) .
Johnston
Kennedy
Kerry
Lautenberg
Leahy
Levin
Long (checked circled)
Matsunaga
Melcher
Metzenbaum
Mitchell
Moynihan
Nunn
Pell
Proxmire
Pryor
Riegle
Rockefeller
Sarbanes
Sasser
Simon
Stennis (checked circled) .
Zorinsky
(handwritten) 13

(handwritten) Gov's
Carlin - KS
Alexander - TN
Lamm - Colo
Graham - FLA.
Thompson - ILL
Sununu - N. H.
Thornburgh - PA.
Janklow - S.D.
Robb - VA.
9 Gov's.

Administration:
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

(handwritten) 22

(handwritten in margin) 13 Staff (Senate) 9 Govs. = 22

(page 11)
TUESDAY, February 26, 1985 - S-207
National Governors' Association Executive Committee
2: 30 - 3:30 p.m.
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
SCHETTACH, RAY
MARTIN JIM
HOISTEEN, STEVE
SMITH, TERRY
KEEL HUNT

(page 12)
R. DeArment F.Y.I.
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
4:00 - JIM MARTIN RAY SCHEPPACH

January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 13)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U.S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenici, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 14)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
7 staff people from Governor's chairs around the room
10 senators
10 governors

hollow square
5 or 6 on each side of the square

ice water ice coffee-tea tab-coke cookies

783- 0180
Susan Ayde

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 15)
DRAFT January 31, 1985
Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 16)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . 202) 624-5300

(page 17)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 10, 1985
(handwritten) 1 hr.

Mr. Roderick A. DeArment
Chief of Staff
Office of the Majority Leader
United States Senate
Capitol Building, Room S-233
Washington, D.C. 20510

Dear Rod:
Congratulations on your appointment as Chief of Staff. The Governors individually and collectively can be very helpful to Senator Dole as Majority Leader. Whenever I can be of assistance, please just call.
(handwritten) budget
Governor Carlin met with Senator Dole recently and the Senator accepted an invitation to speak at the opening plenary session of the NGA Winter Meeting on Sunday, (underlined) February 24 (end underline) (crossed out) at 2:30 p.m. (end cross out) (handwritten) 3:45 (end write in) Senator Dole suggested, and Governor Carlin accepted, that the NGA Executive Committee meet with a small bipartisan group of the Senate Leadership on Tuesday, (underlined) February 26, also at 2:30 p.m. (end underline)
(handwritten) 9
We need to confirm both the details of the speech and the meeting, especially the Senate Leadership meeting. Attached is a draft list and invitation letter on my suggestions for the Leadership meeting which you can change as you please. We also need to confirm the room (S-207).
Please confirm the invitation list, room number and time so we can also send invitation letters from Governor Carlin, Chairman and Governor Alexander, Vice Chairman.
Sincerely, (signature) James L. Martin Legislative Counsel
Attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 18)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

January 29, 1985
Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group of the Senate Leadership on the afternoon (2:30 p.m.) of Tuesday, February 26 to discuss joint action on deficit reduction.
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel
attachments
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 19)
DRAFT AGENDA

Opening Remarks
2:30 p.m.
Senator Dole
Governor Carlin

Budget Concerns
2:45 p.m.
Senator Domenici
Senator Chiles

Governors' Comments on NGA Budget Issues
Governor Alexander
Governor Thompson
Governor Lamm

Open Discussion

Concluding Comments
Senator Dole
Governor Carlin

(page 20)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U. S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole
(handwritten) table for 20

(page 21)
(handwritten) Full Cmte.
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

(handwritten) Banking?
Armstrong? OK & Leadership

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 22)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

(handwritten)
Coffee & tea
10 Gov's S-207
20 people at table
Large conf. table
20 people
Chairs against wall for staff

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 23)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 14, 1985

The Honorable Robert Dole
Majority Leader of the Senate
U.S. Capitol, Room S-233
Washington, D.C. 20510

Dear Senator Dole:
In preparation for the (underlined) February 26 meeting at 2:30 (end underline) p.m. of the NGA Executive Committee and the Senate Leadership, as well as your opening address at the Plenary Session on (underlined) February 24 (end underline) at (crossed out) 2:30 p.m., (end cross out) (handwritten) 3:45 p.m. (end handwritten) attached is a copy of the current NGA policy statement on the federal budget and the working draft of our tax reform policy.
Our budget policy should lend strong support to the Congressional leadership as you forge deficit reduction compromises. We share the same goals for substantial economic growth, fairness and equity in budget restraint and targets for deficit reduction.
We look forward to an active role of cooperation with the Senate leadership in 1985 and our meetings in February.
Sincerely, (signature) Governor John Carlin
(signature) Governor Lamar Alexander

attachment
CC: Senate Leadership NGA Executive Committee

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 24)
JCM
National Governors Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at (crossed out) 2:30 p.m. (end cross out) (handwritten) 3:45 p.m. (end handwritten) on Sunday, (underlined) February 24. (end underline) The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leader- ship. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 25)
A. - 14
NGA POSITION ON THE FEDERAL BUDGET
The nation's Governors are deeply concerned about the large federal deficits that are projected over the next five years. These deficits are estimated to increase from $189 billion in fiscal 1984 to $308 billion in 1989 if current policies are continued.
We believe it is critical that a federal deficit reduction program be enacted in 1984. While we support budget restraint and spending reductions in many areas, we have come to the conclusion that some tax increases are necessary to restore a proper balance between income and expenditures. Failure to address the problem this year will require stronger measures next year.
Our concerns focus on the following issues:
· The Economy - Deficits of the magnitude projected (5.7 percent of GNP by 1989). will significantly retard economic growth and productivity during the 1980s. By the end of the decade, the federal government will be absorbing an estimated 80 percent of the loanable funds, further driving up interest rates and diverting capital from private investment. High interest rates will maintain an overvalued dollar which in turn restrains United States exports and stimulates imports, thereby contributing to the current international trade deficit of over $70 billion in 1983. High interest rates and a strong dollar will restrain real economic growth. During the next decade, unemployment and other disruptions in the private lives of the citizens of our states will be the direct result.
· State Fiscal Condition - The fiscal condition of states in 1983 was the worst in recent memory. The national recession wreaked havoc on state after state in the early months of 1983, requiring them to enact tax increases and spending cuts. Now that the nation's economy is improving, the recovery is affecting states unevenly and slowly. Although some states are expecting temporary surpluses, most state finances are still highly constrained. In 1982 and 1983, 44 states raised taxes and 43 states initiated cost-cutting measures. Even with these tax increases, 1983 budgets are below 1981 spending levels in constant terms. Funds available to the states in future years must be used to meet pressing obligations deferred by states because of the recession - including infrastructure repair, education, environmental protection, income security, and other important initiatives funded with state revenues. States are not in a position to pick up new fiscal responsibilities from the federal government.
· Income Security and Other Critical Programs - Increased interest expenditures, higher defense spending, and growth in non-means tested entitlement are competing in the budget with funds for housing, unemployment insurance, and food, medical, and income assistance needed by people adversely affected by problems in the nation's economy. Infrastructure investment programs important to a recovery also may be affected. These activities are projected to account for a shrinking portion of the federal budget over the 1980s, a trend we believe must be stopped.

(page 26)
Accordingly, the Governors urge Congress and the Administration to determine which of the possible approaches to reducing the current and outyear deficits will be most effective and to work on a bipartisan basis to implement them. It may be necessary to convene a summit meeting or task force as suggested by the President to determine the best course; Governors are available to participate in such efforts. Beyond this, Congress may wish to consider making some procedural changes designed to assist in controlling future spending, such as a closer review of the credit and capital budgets, making the first budget resolution binding, implementing biennial appropriations, using an omnibus appropriation bill, and instituting line item veto authority for the President. As a first step, we urge Congress to complete work on the revenue and spending measures contained in S. 2062 and H.R. 4169 that were approved by the committees to comply with the FY 1984 reconciliation instructions, excluding the proposed reductions in the Medicare part B deductible, AFDC, and SSI programs. (This would save approximately $27 billion over three years.)
Recommended Budget Guidelines
In identifying budget changes, Congress and the Administration are urged to consider the following general guidelines:
1. A goal of eliminating the deficit in its entirety should be adopted. Congress and the Administration should implement long-term measures now to achieve this target.
2. An interim goal of reducing the projected deficit to approximately 2 percent of GNP by 1989 should be adopted. Such a strategy would eliminate the structural deficit and would reduce the projected fiscal year 1989 deficit from $308 to $120 billion, a reduction of $188 billion by that year.
3. Policy changes should be enacted that share the burden among national defense, domestic spending and revenue increases, which do not unfairly burden already hard pressed low and middle income Americans.
4. Investment in long-run economic growth should rank with an adequate national defense and protecting needy persons as a high federal budget priority.
We offer the following specific guidelines:
1. Non-defense discretionary spending: Restrict the 1985-1989 increases to three-fourths the rate of inflation. This category includes grants to state and local governments, assistance to business and commerce, veterans' health care, environmental regulation, research and development, economic and military assistance to foreign governments, and most of the cost to operate the various branches of the federal government (a reduction in 1989 of $12 billion from projected spending of $200 billion). Any increases within this category should concentrate on the investment components of the budget, including grants for infrastructure, major environmental protections, education and job training, and federal initiatives supporting basic research and development.
2. Selected means tested entitlement programs: Provide full funding for these programs: AFDC, food stamps, Title XX, medicaid, SSI, child nutrition, and

(page 27)
child welfare services (no reduction from projected spending in 1989 of $74 billion).
3. Other entitlement programs: Restrain the growth in these entitlement programs, which are projected to increase 43 percent between 1984 and 1989. Included in this category are the various medical insurance, social security, disability, farm price support, and retirement programs funded by the federal government. Health care cost containment, federal retirement programs, and automatic cost of living adjustments should be targeted for review, although care must be taken to preserve benefits for low income citizens (a reduction in 1989 of $25 billion from projected spending of $490 billion.)
4. National defense: Limit national defense to between 2 and 4 percent real growth in appropriations over the 1985-1989 period. Since defense spending has increased almost 51 percent between 1981 and 1984, some slowing of this rate may be appropriate to maintain cost-effectiveness in weapons systems and other procurement (a reduction in 1989 of $30 billion from projected spending of $408 billion).
5. Revenues: Increase revenues by approximately 5 percent over the 1985-1989 period in order to attain the goal of a deficit close to 2 percent of GNP by 1989. (Revenues have decreased as a percentage of GNP from 20.8 percent in 1981 to 18.6 percent in 1983 and are projected to rise to 18.9 percent by 1989.) An increase of this magnitude over the period represents restoration of about one-fourth of the tax changes enacted in the 1981 and 1982 tax bills. To increase revenues, priority should be given to broadening the tax base so that the tax code becomes simpler and more efficient and so that reasonable tax rates can be maintained (an increase in 1989 of $91 billion over projected revenues of $1 trillion).
Budget Targets
In order to assure a commitment to deficit reductions, the Governors urge Congress and the Administration to agree on specific bipartisan deficit targets for each of the next five fiscal years. These deficit targets should represent a downward glide path from approximately $197 billion in 1985 to 2 percent of GNP by 1989. The targets could be part of a summit task force or commission agreement. Congress and the President should work together to approve FY 1985 appropriations, tax, and reconciliation legislation consistent with the established targets. As a first step, the Governors urge enactment this year of a 3 year $100 billion deficit reduction "down payment."
Legislation should be enacted to freeze the implementation of indexing the income tax and COLAs unless the budget adopted by Congress is consistent with the agreed upon deficit targets.
Summary of Budget Guidelines
Under current policy, the deficits over the 1985-1989 fiscal year period will total over $1.2 trillion, or approximately double the current federal debt outstanding. Under the NGA proposed guidelines, the deficit over this period would be reduced by $460 billion, including a $183 billion reduction in non-defense programs and interest, $60 billion in defense reductions, and $217 billion in tax increases. The NGA budget policy guidelines provide for a "downward glide path" toward a deficit of 2 percent of GNP by fiscal year

(page 28)
1989. This would leave a deficit of about $120 billion in fiscal year 1989, a $188 billion reduction from the baseline estimate for the deficit in that year.
The ultimate goal which the NGA recommends is the complete elimination of the deficit. Congress and the Administration should adopt a coherent long-term strategy that achieves this ultimate goal and meets the 1989 objective.
Deficit Reductions (Billion of dollars by fiscal year)

1985
1986
1987
1988
1989
Projected Deficits
197
217
245
272
308
Total Deficit Reduction
22
43
78
129
188
Remaining Deficit
176
174
167
143
120

Adopted February 28, 1984

(page 29)
WORKING DRAFT
Executive Committee National Governors' Association
November 29, 1984

NGA TAX POLICY STATEMENT
The Governors have a strong interest in the efficiency, fairness and revenue raising capacity of the federal tax system. Federal tax policy is critical to national productivity and thus to the growth in output and real income. These in turn have a direct effect on job creation and the growth in state tax revenues over the long run. In addition, state tax policy is closely linked to federal policy; thirty-three states currently use either federal adjusted gross income or federal tax liability as the state tax base for personal income taxes. A similar federal/state linkage exists for many state corporate taxes.
The current income tax system suffers from three basic problems: it is complex; it is inefficient; and it is unfair. While it is true that each of the 105 so-called "tax expenditures" has a rational justification on an individual basis, taken as a whole, they severely weaken the efficiency and fairness of the entire system.
The tax expenditures make the code difficult to comply with and expensive to administer. Today's taxpayer must navigate through a 1040 form which has eight income adjustments and seven tax credits, most of which have separate supporting forms in addition to those for deductions, capital gains, dividends and the alternative minimum tax. The IRS reports that in 1982 more than 40 percent of all taxpayers resorted to professional help and that more than 263,000 tax shelter cases are presently in some state of audit, appeal or litigation. Tax expenditures also make the code inefficient by both misallocating resources and keeping marginal tax rates high -- this adversely impacts incentives to work, save and invest. Furthermore, tax expenditures make the code unfair. By creating exemptions or deductions for certain types of income, such as in-kind or accrued but unrealized income, individuals with similar yearly incomes pay different taxes. Moreover, the high marginal tax rate encourages tax evasion; the gap between what people and corporations owe and what they actually pay now approaches 100 billion dollars per year.
Given these serious deficiencies in our present tax code, it is time to reform the federal tax system. The reform, however, should be revenue neutral, and considered separate from the issue of reducing the federal deficit. In the interest of strengthening the federal tax system, and as partners with the federal government in promoting fiscal stability and insuring adequate revenue-raising capacity, the Governors offer the following recommendations:
A modified flat tax is the best alternative for strengthening the federal tax system. Broadening the tax base would change the tax system primarily by conforming income subject to tax more closely to income as most citizens understand it. Base broadening would allow a significant reduction in tax rates and would: increase the fairness of the federal tax system; improve incentives to work, save and invest; reduce incentives for tax avoidance and evasion and thus lower the cost and increase the effectiveness of enforcement; and make the tax system less complex by reducing the number of exclusions, deductions and credits. These advantages will also be reflected in most state income tax systems as states generally follow federal definitions of income.

(page 30)
2
The modified flat tax supported by the Governors includes the following:
The base broadening that accompanies the change to a modified flat tax should be substantial enough to reduce the marginal tax rates by at least 15 percentage points, for example, from a top rate of 50 percent to 35 percent. Anything less would discourage groups from cooperating to achieve the goal of tax reform. All exclusions, deductions, and credits should be reviewed for inclusion in the tax base. The Governors believe, however, that it is appropriate to retain, with possible small limitations, the deductions for charitable contributions, interest on home mortgages, extraordinary medical expenses, and the exclusion of pensions and savings for retirement.
Any changes to the federal tax system which would specifically hinder the ability of states and local governments to raise revenues is strongly opposed by the Governors. As a significant portion of all state and local expenditures are currently financed through bonds, the Governors strongly believe that any reform must not affect the current exclusions of state and local interest payments. To the extent, and only to the extent, that the proposed base broadening is significant, the Governors are, however, willing to consider some limited modification of the other tax expenditures that benefit state and local governments. However, any adjustment of state and local tax expenditures must minimize differential impacts across states.
The reduced marginal rates that accompany the proposed base broadening should not reduce the current progressivity of the federal tax system.
Finally, the modified flat tax should not result in any further reduction in the percentage of federal revenues projected from corporate income taxes. Corporate tax reform should be careful to support state efforts for economic growth and job creation. We believe that base broadening and simplification is a reasonable basis for the reform of corporate taxes as well, but have not addressed details of such revision. As general principles, the corporate tax reform should discourage economically inefficient transactions, reduce tax expenditures, and generally be consistent with the changes made for individuals. Base broadening may also permit a reduction in rates while retaining the current division of taxes between business and individuals.
While the Governors support a modified flat rate tax, they are strongly opposed to a national value-added or sales tax that would be used in place of all or part of the current income tax system. These taxes intrude into a tax area that has traditionally been reserved for and relied upon by state and local governments. If enacted, either of these taxes could seriously threaten the ability of state and local governments to raise revenues.
In conclusion, the Governors believe strongly that the tax system can be made more efficient and equitable and less complex by broadening the tax base. It is important, however, that tax changes be made only with close consultation with state and local government since federal tax changes have significant impacts on these other levels of government. The Governors look forward to working with the Administration and the Congress in partnership on this critical national priority of tax reform.

(page 31)
National Governors' Association
(handwritten) Joyce
Tuesday, February 26 Tues. (end handwritten)
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
January 29, 1985

Ms. Betty Meyer
Appointments Secretary
Office of Senator Dole
SH-141 Hart Senate Office Building
Washington, D.C. 20510

Dear Betty:
As Senator Dole (underlined) suggested, and Governor Carlin agreed to, the NGA Executive Committee is planning to meet with a bipartisan group (end underline) of the Senate Leadership on the afternoon (2:30 p.m.) of (underlined) Tuesday, February (end underline) 26 to (underlined) discuss joint action on deficit reduction. (end underline)
The meeting would be with Senators and Governors only with about ten each. A draft attendance list is attached as well as a draft letter that Senator Dole should send to invited Senators.
Next week Governor Carlin would like to send his invitation letters to the same Senators. Due to the crowded schedules of so many important people, especially Senator Dole, we need to finalize arrangements as soon as possible.
As always, your excellent work has made past meetings very fruitful. I am prepared to help with any or all details as you suggest. Thanks again.
Sincerely, (signature) James L. Martin Legislative Counsel

attachments

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 32)
PRELIMINARY INVITATION LIST
Senate Leadership
NGA Executive Committee Meeting
Tuesday, February 26, 1985
2:30 p.m.
U. S. Capitol
Mansfield Room (S-207)

Republicans
Senator Alan Simpson, Wyoming Majority Whip
Senator John Chafee, Rhode Island Chairman, Republican Conference
Senator Mark Hatfield, Oregon Chairman, Appropriations Committee
Senator Pete Domenica, New Mexico Chairman, Budget Committee
Senator Bob Packwood, Oregon Chairman, Finance Committee

Democrats
Senator Robert Byrd, West Virginia Minority Leader
Senator Alan Cranston, California Minority Whip
Senator Daniel Inouye, Hawaii Secretary, Democratic Conference
Senator John Stennis, Mississippi Ranking Minority Member, Appropriations Committee
Senator Lawton Chiles, Florida Ranking Minority Member, Budget Committee
Senator Russell Long, Louisiana Ranking Minority Member, Finance Committee

(page 33)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director

NGA EXECUTIVE COMMITTEE
Governor John Carlin, Kansas, Chairman
Governor Lamar Alexander, Tennessee, Vice Chairman
Governor Richard D. Lamm, Colorado
Governor Bob Graham, Florida
Governor James R. Thompson, Illinois
Governor John H. Sununu, New Hampshire
Governor Dick Thornburgh, Pennsylvania
Governor William J. Janklow, South Dakota
Governor Charles S. Robb, Virginia

HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

(page 34)
DRAFT
January 31, 1985

Dear Pete: (Domenici)
I am cosponsoring with Governor John Carlin a special bipartisan meeting of the Senate Leadership with the Executive Committee of the National Governors' Association. The meeting will be held on Tuesday, February 26 at 2:30 p.m. in the U.S. Capitol, Mansfield Room, S-207.
I am looking forward to this discussion and the possibility of developing a mutual agenda on many issues, but especially deficit reduction.
I hope you can join us for a frank discussion of our priority legislative issues for 1985.
Sincerely,
Senator Robert Dole

(page 35)
National Governors' Association
John Carlin Governor of Kansas Chairman
Raymond C. Scheppach Executive Director
December 20, 1984

The Honorable Robert J. Dole
United States Senate
SH-141 Hart Senate Office Building
Washington, DC 20510

Dear Senator Dole:
Thank you for the opportunity to discuss the governors' concerns with you last week. On behalf of my fellow governors, I want to reaffirm our desire to continue a strong working relationship with you as Majority Leader.
In this regard, I wish to invite you to speak at the opening Plenary Session of our 1985 winter meeting at 2:30 p.m. on Sunday, February 24. The session will be held at the Hyatt Regency on Capitol Hill. We welcome your suggestion for a follow-up meeting on Tuesday afternoon, February 26, between the NGA Executive Committee and members of the Senate Leadership. I would be pleased to co-sponsor this meeting with you to discuss a bipartisan agenda for action on the federal deficit.
Congratulations again on your election as Majority Leader of the Senate. Be assured of my support in the year ahead.
Sincerely (signature) Governor John Carlin
HALL OF THE STATES . 444 North Capitol Street . Washington, D.C. 20001 . (202) 624-5300

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