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					,

                       In The
    NATIONAL GOVERNORS' ASSOCIATION

                     *********
                PLENARY SESSION


•                    *********


                 Held at The Mirage
           3400 Las Vegas Boulevard South
              Las Vegas, Nevada 89109




           REPORTER'S TRANSCRIPf
                     OF
                PROCEEDINGS
             Monday, July 28, 1997


•
                                 TRAVELING
                    ~1Id         TRANSCRIPTTM
              Laurie Webb & Associates
                    (702) 386-9322




•
    REPORTER'S TRANSCRIPT OF PLENARY SESSION                                          NATIONAL GOVERNORS' ASSOCIATION

•   MONDAY, JULY 28, 1997

                                                               I                                                                   3
     1                                                               1   discuss topical issues such as education, jobs,
    2                                                               2 transportation, and our Congressional legislative



•
    3                                                                3 priorities for 1997-98 .
    4                                                                4               In addition, we have meetings of the NGA
    5                 NATIONAL GOVERNORS' ASSOCIATION               5    standing committees to discuss a number of vital
    6                                                               6 issues. Primarily we will continue our focus on
    7                           *********                           7 children. In particular, specific actions that
    8                                                               8 Governors can take for children from zero to
    9                         PLENARY SESSION                       9 three.
    10                                                              10               With that in mind, I now offic~ally call
    11                          *********                           11   to order the 1997 Annual Meeting of the National
    12                                                              12   Governors' Association.      May I begin with a request
    13                                                              13   for an adoption of the rules of procedure for this
                             Held at The Mirage
    14                 3400 Las Vegas Boulevard South               14   meeting?
                          Las Vegas, Nevada 89109
    15                                                              15               GOVERNOR VOINOVICH:       So moved.
                           Monday, July 28, 1997
    16                                                              16               GOVERNOR MILLER:     So moved by our
                                *********
    17                                                              17   Vice-chairman.   Is there a second?
    18                                                              18               GOVERNOR NELSON:     I second.
    19                                                              19               GOVERNOR MILLER:     Is that Governor
    20                                                              20   Nelson?
    21                                                              21               All those in favor signify by saying
    22                                                              22   Aye.
    23   Reported by: Laurie H. Webb, CCR No. 50, RPR-RMR           23               ALL GOVERNORS:     Aye.
    24                                                              24               GOVERNOR MILLER:     Any opposed?
    25                                                              25                    (No response.)



                                                               2                                                                   4

     1                 GOVERNOR MILLER:     May I have your          1               GOVERNOR MILLER:     Mot~on carried.    The
     2   attention, please.                                          2 nominating committee for the 1997 NGA Executive
     3                 Good morning, Governors, and ladies and       3   Committee will be Governor Christine Todd Whitman
     4   gentlemen.     It's my pleasure to welcome you to our       4 of New Jersy, Governor John Rowland of Connecticut,
     5   city and our state, and the opening plenary session         5   Governor Mel Carnahan of Missouri, Governor Tony
     6   of the National Governors' Association's       89th         6 Knowles of Alaska, and Governor Terry Branstad of
     7 Annual Meet1ng.                                               7 Iowa who will serve as the chairman.
     8                 I hope you enjoy Las Vegas.    We built it    8               Part of the rules require that any
    9 for you.        And the many attractions which are world       9 governor who desires to submit a new policy or
    10   renowned.     And one of those, of course, is our          10   resolution for adoption at this meeting after the
    11   selection of fabulous restaurants, and tonight each        11   July 11 mailing will need a three-fourths vote to
    12   of you w~ll have an opportunity to sample many of          12   suspend the rules.   If you have any such resolution
    13   them at our special Taste of Las Vegas at the              13   request, please submit any proposal in writing to
    14   Fremont Street Experience.                                 14   Jim Martin of the NGA staff, who is probably right
    15                 I want to thank everyone who is helping      15   beh1nd me somewhere, there he is, you all know Jim,
    16   to make your stay in Nevada pleasant and                   16   or your staff does, and he's right there, by 5:00
    17   memorable.     And also those of you who are going to      17   tomorrow, or Tuesday.
    18   pawn your return tickets in times of need, let us          18               The President will jo~n us momentarily.
    19   know.                                                      19   In the interim I'd like to calIon        a couple of my
    20                 As you know, today is a very busy day        20   colleagues who have issues they'd like to discuss
    21   for governors.     We're privileged to have the            21   with us.
    22   President of the United States and the award               22               First, calIon     Governor Patton of
    23   winners for Distinguished Service of State                 23   Kentucky.   And at the conclusion of Governor
    24   Government.                                                24   Patton's remarks, if Governor Thompson would come
    25                 We also have a Governors Only Session to     25   up and assume the chairmanship for a moment,



                                              LAURIE WEBB AND ASSOCIATES                                               Page 1to Page 4
    REPORTER'S        TRANSCRIPT OF PLENARY SESSION                                          NATIONAL GOVERNORS' ASSOCIATION

,   MONDAY, JULY 28, 1997

                                                                     9                                                                  11

    1    additional $150 million in recurring savings or                  1                 All polls show that Americans are
    2    revenue when fully implemented.          Almost one for          2    optimistic about the future.      Why?   Their job




•
    3    one.                                                             3    opportun1ties are better than ever.       Their
    4                 These projects yielded the greatest                 4 paychecks are up, and affordable health care is
    5    those projects yielding the greatest financial                   5    expanding rapidly.
    6 benefits were fully funded, because we didn't quite                 6                 We especially applaud you for your
    7 have enough money; and the others received enough                   7 determined cooperation with Congress to produce a
    8 funds to get started, and I am confident that I can                 8 balanced federal budget and tax reliefs for the
    9 go back to the legislature and get the remain1ng                    9 majority of Americans.
    10   $70 million to fund this entire program.          Because        10                Additionally, your childrens' health
    11   we've obviously succeeded in getting more than a 50              11   initiative is a major expansion in health care of
    12 percent return on investment.                                      12 our most treasured resource, our children.
    13                We discovered numerous inefficient                  13                And there is a new reality coming of
    14   functions which simply hadn't been changed because               14   health care for every child in America.
    15 no one was looking for ways to change them.            But         15 Congratulations.
    16   getting the employees to step back, look at the                  16                And since chairing NGA, you have always
    17   ultimate goal of their program, and redesign a way               17   fought hard for welfare reform.       And now, too, this
    18   to accomplish their task, we've improved morale as               18   is a reality.    America's finally working for
    19   well as efficiency.                                              19   millions of people because government welfare
    20            We've empowered our employees, and the                  20 programs are changing from a hand-out to a hand-up,
    21 result is that we're better serving Kentucky's                     21 for personal dignity, responsibility, job training
    22   taxpayers.    At your desks I think you will find a              22 and promising work opportunities.
    23   couple of publications that summarize our Empower                23                And finally, while pursuing these
    24   Kentucky Program.     If you're interested, my staff             24   dreams, you have never forgotten the needs for
    25 will be glad to make more 1nformation ava11able.                   25   rapid response when natural disaster strikes.         You



                                                                     10                                                                 12
     1                Thank you, Governor Miller, very much.               1   have responded personally and quickly to several of

•   4
     2 Good day.
     3                             (Applause.)
                      GOVERNOR THOMPSON:     If Governors just
                                                                           2 our requests for assistance over the past few
                                                                          3 years.     And with that, you have preserved the hopes
                                                                          4 and hard work of so many Americans.
     5 want to remain sitting, the President will be here                  5                Mr. President, each governor and
     6 shortly.                                                            6 millions of Americans are proud to join with you in
     7                ANNOUNCER:    Ladies and gentlemen, the              7 your cont1nued commitment to Making America Work.
     8   President of the United States, accompanied by                    8                Ladies and gentlemen, the President of
     9 Governor Bob Miller and Governor George Voinovich.                  9 the United States.
    10                             (Applause. )                           10                     (Applause.)
    11                GOVERNOR MILLER:     Mr. President, it's            11                MR. PRESIDENT:     Thank you, very much.
    12 always good to have you back where you began, with                 12 Thank you.      Thank you, very much.      Thank you.
    13 the Nation's governors.                                            13 Thank you.      Thank you.   Thank you, very much.
    14                Ten years ago, as Chairman of the                   14   Thank you.    Thank you.   Thank you very much.       Thank
    15 National Governors' Association, you dreamed of a                  15 you.
    16   new agenda for making America work, and established              16                     (Applause.)
    17   five task forces to deal with the most widespread                17                MR. PRESIDENT:     Thank you, very much,
    18   and cr1ppling barriers to productive lives.                      18   for the warm welcome.      I must say, whenever I come
    19   welfare dependency, school dropouts, teenage                     19 back here, I feel terribly nostalgic, and I'm eager
    20 pregnancy, adult literacy, and alcohol and drug                    20 to


•   21 abuse.
    22
    23
    24
                      In addition, the first float in your
         inaugural parade was Mak1ng America Work.
         Pres1dent, you have made your dreams a reality for
                                                            And as
                                                                          21 come, I hate to leave, and I always know there'S
                                                                          22
                                                                          23
                                                                               something that we don't entirely agree on, and
                                                                               right before we came in here, I came into The
                                                                          24 Mirage and I saw Steve Wynn and Governor M1ller,
    25   millions of Americans.                                           25   and right before we walked in we walked through



                                                  LAURIE WEBB AND ASSOCIATES                                               Page 9 to Page 12
         REPORTER'S         TRANSCRIPT OF PLENARY SESSION                                                       NATIONAL GOVERNORS'               ASSOCIATION

     I   MONDAY, JULY 28, 1997

                                                                                      17                                                                                 19
          1   open new markets        to American    products     and services,             1   impact it would have on the stock market               and on
         2    and we've got the strongest           economy   in a                         2    individual     investment    decisions,     and on the other
         3    generation.                                                                  3    things that keep our economy          rolling.      So I th~nk


     •   4
         5
                             In crime, we said we had to keep being
              tough on criminals,        but we had to do some
                                                                                           4
                                                                                           5
                                                                                                it would be a mistake .
                                                                                                              More important,     this is a remarkable
         6    intelligent     things,    that we could have reasonable                     6    budget.     Because     of the prosperity     of our country,
         7    restrictions     on keeping       guns out of the hands of                   7    we have an historic        opportunity    to balance       the
         8    people who shouldn't        have them, without         interfering           8    budget    in a way that reflects        our values     and
         9    with the right of Americans           to keep and bear arms.                 9    strengthens     our economy    as well .
     •   10   And we have done it.                                                         10                 Historic     opportunity    to pass a balanced
         11                 We said we had to punish people more,                          11   budget    that includes     the largest     increase      in
         12   but we had to give children           something     to say yes               12   education    since 1965, the largest         increase      in
         13   to.    And we've had five years of declining              crime,             13   helping people       go to college    since the GI Bill
         14   and last year the biggest           drop in violent      crime in            14   passed    50 years ago, and as Governor           Miller       said,
         15   35 years.                                                                    15   the largest     increase    in health     insurance    and health
         16                  In welfare,    all of you proved         that you             16   support    for children     since Medicaid       was enacted          in
         17   could be tough on work and still supportive                  of              17   1965, with a bipartisan        vote from the Congress.
         18   children    and families.         That it was a false                        18                 We have a chance to pass a balanced
         19   choice.     And we had the biggest        drop in welfare                    19   budget    that will move more people         from welfare           to
         20   rolls in history.                                                            20   work, that protects        the environment,       that extends

I'       21                  Today    I would    like to talk about three                  21   the Medicare     Trust Fund for a decade,          although         to
         22   things, basically.         One is finishing       the job of                 22   be sure we will have to do more on that in the
         23   balancing     the budget;    two, is following         through         on    23   future.
         24   welfare    reform;     and third, aChieving       national                   24                 We have an opportunity         to give the
         25   excellence     in education.                                                 25   American    people     a tax cut that is modest        in the



                                                                                      18                                                                                  20
          1                  First, with regard to the budget,              we're           1   context    of the overall     economy,     but still will
          2   now in our final stage of negotiations               on the                   2   provide    much-needed     relief to middle       class
          3   details    of legislation     to write     into law a balanced                3   families,    will support     education     and will help to
          4   budget agreement.                                                             4   grow this economy        in the future.
          5                  We know now that the deficit            this year,             5                  This is an histor~c        opportunity,         it can
          6   when it comes in, will be over 80 percent                less than            6   be the achievement        of a generation,       it can only
          7   it was in 1992 when I took office,              in January        of          7   happen with big majorities        of people       in both houses
          8   '93.                                                                          8   and both parties        coming together     and I believe
          9                  And some people        are saying, Well, we                    9   we're on the verge of achieving            it.
         10   ought to just forget about it, you know, the                                 10                  We've worked    hard over the past weekend
         11   economy will keep growing           and the budget will be in                11   trying to work out some of the last difficulties
         12   balance    next year.      That is dead wrong.                               12   with which many of you are very familiar.                  I am
         13                  It might be in balance         next year, or it               13   pleased    to say that we have reached           agreement          that
         14   might not, but if it is, the deficit              will start                 14   the American     people will get America's          version          of
         15   going up again immediately.            Why?                                  15   George's    Hope Scholarship     of $1,500 tax credit for
         16                  Because    as as all of you know, you can't                   16   the first two years of college.
         17   reform the entitlements           in an annual appropriations                17                  There will be other things          in the
         18   basis.     We have over $400 billion          of savings      in the         18   agreement     that are well-known,        but it's clear to me
         19   entitlement     programs     in this balanced       budget                   19   that it must have a child tax credit available                       for
         20   agreement,     and $900 billion        in savings    over ten                20   working     families    who need it, from teachers             to
         21   years.                                                                       21   technicians,     from firefighters        to small business
         22                  Secondly,    one of the things that keeps                     22   people    across this country.
         23   the economy     going    is confidence     that we're serious                23                  It should    include   $24 bill~on      for
         24   about fiscal responsibility.             So if we walked          away       24   childrens'     health    care, it should     include a tobacco
         25   from the budget        agreement,     we don't know what                     25   tax to help pay for that health care, and it should



                                                         LAURIE WEBB AND ASSOCIATES                                                                Page    17 to      Page 20
    REPORTER'S      TRANSCRIPT OF PLENARY SESSION                                         NATIONAL GOVERNORS'       ASSOCIATION

•   MONDAY, JULY 28, 1997

                                                              33                                                                   35
     1   transportation bill, the proposal I've made for               1   actually have to have help.
    2    $600 million to help states and localities devise            2                  So I would urge all the states to put in




•
    3    transportation strategies to move people from                3    place these tough      state-w~de child support
    4    welfare to work.                                             4    collection mechanisms as fully and qu~ckly as
    5               Some communit~es and states have already          5    possible.
    6    started.   Kentucky has an Empower Kentucky                  6                  Finally, let me say that I have some
    7    initiative that uses the resources of four                   7    concern that the savings from welfare, which has
    8    different cabinet offices and a free transportation          8    been very considerable in some states, will not be
    9    brokerage system to assure transportation in all             9    used on welfare reform to move all the people who
    10   areas of the state.   And this will probably be              10   can move from welfare into the work force.
    11   something that all of us who come from states with           11                 We have lowered welfare rolls by $3
    12 large rural populations where there are people in              12 million over four and a half years, and that's a
    13 rural areas on welfare will have to adopt.                     13 great accomplishment.        But we know we've been
    14              M~ch~gan's Project Zero provides                  14   helped by the other things that I mentioned.
    15 transportation in its effort to put every able                 15                 Now, I know in some state capitols there
    16 bodied person to work.                                         16   are big debates about how to use extra money caused
    17               In Wisconsin -- this is a stunning               17 by the fact that the block grant was pegged to the
    18   statistic to me -- only three and a half percent of          18   peak welfare case load, and the case load is much
    19   the people on welfare have cars, so the State has a          19   lower in your states.
    20 Job ride initiative to van-pool literally thousands            20            But I think if we were to divert these
    21 of central city workers to suburban jobs.                      21 savings to other things, away from welfare reform,
    22               Other states are spending part of the            22   it would be a big mistake that would come home to
    23 welfare block grant you now have on                            23   haunt the states the next time there is an economic
    24   transportation.    And I would just encourage you to         24   downturn.     Anybody who does it I think would really
    25 do more of it, and I ask you to please help me                 25 wind up regretting it the next time there is an



                                                                 34                                                                36

     1   persuade Congress to put this $600 million in the             1   economic downturn.
    2    new IST bill, because it will help you to do what            2                  Even in an economic downturn if people
    3    you have to do to meet your goals of employment.             3    lose their jobs, if they have work experience now,
    4                Finally, let me say a word about child           4    if we can get all these people into the work force
     5   support.   The Governors have been in the vanguard           5    now, then when they become unemployed, as there
    6 of insisting on more uniform tougher child support              6    will always be some people who are unemployed, they
     7   requirements.                                                7    will be far, far more likely to be unemployed for a
    8                The legislation that has been passed,            8    shorter period of time and to get back to
    9    and the efforts that we have made together have led          9    productive work more quickly.
    10   to an increase of 50 percent in child support                10                 Maryland has decided to take the money
    11   collections between '92 and '96, and that is very            11   that they have from lowering case loads and they're
    12 good.    That's billions of dollars.                           12 using all of it for child care, transportat~on, and
    13               But, with the unanimous support from             13 training people, and I think that that is the way
    14   this body, we made sure in the welfare law there             14   to go.
    15 were tough new measures to help the states track               15                 After a year of this law, we know that
    16   deadbeat parents across state lines.                         16   welfare reform will work.      We know it w~ll.     But we
    17               Today, however, as you saw from the              17 know that we have a ways to go to make a cultural
    18   study that was published a few days ago, not all             18   dependency a thing of the past.
    19   states have put these measures in place.      This is        19                 So in these four areas, for all you're




•
    20 one of the critical steps to welfare reform. And               20 doing, I applaud you, but I would urge you, all of
    21 the more people who are obliged to pay for their               21 you, to make sure that you've done everything you
    22   ch~ldren, who can pay for their children, are                22   can in each area.
    23   unable to escape the obligation to pay for their             23                 F~nally, let me ask your help 1n one
    24   children, the more there will be public money to             24   other area.    As   all of you know, and part~cularly
    25   spend on productive ways to help the people who              25   those of you who served with me know, education has



                                           LAURIE WEBB AND ASSOCIATES                                                Page 33 to Page 36
     REPORTER'S       TRANSCRIPT OF PLENARY SESSION                                       NATIONAL GOVERNORS' ASSOCIATION

     MONDAY, JULY 28, 1997

                                                                 41                                                                 43
      1   going to be here after I leave, and I know he's              1   finest system of higher education in the world, it
     2    been here, but let me re-emphasize, our basic role          2    will continue to carry us a long way, but we simply




•
     3    here is to pay for the development of this test.            3    have to do a better job in K through 12.       And I
     4 And most of you now participate in the National                4 believe this will help.
     5 Assessment of Education Progress.        Over 40 states        5                  And I want to implore you to work with
     6 do.                                                            6 us and try to work through the legitimate
     7                  We participated in helping to pay for         7 administrative concerns you have of the duplication
     8    the development of that test.     But it's a national       8    of tests and the time and all that business.        We
     9 test that is given to a representative sample of               9 will do everything we can to help with that.
     10   students, it has nothing to do with the federal             10                 But I think th~s is a terr~fic
     11   government.     They're not government questions,           11   opportunity for us, and now we know we can do it.
     12 government standards, government anything.          We        12                 So those are the things I wanted to say
     13 helped them to develop the test.                              13 about the budget and welfare reform and education.
     14                 That's what we propose to do for all the      14   State responsibilities    involving educat~on and
     15   kids at the 4th and 8th grade level.      Not to have a     15   welfare reform, but high national prior~ties, and
     16   federal standard, but a national standard.                  16   critical to moving these forward into the 21st
     17                 Governor Romer has been working on that       17   Century.
     18   for years, when I've handed over the leadership of          18                 Just very briefly let me mention one
     19   the standards movement, and he took it up, he's             19   more thing.     I have been helped greatly by two of
     20 been, I think, perhaps our most passionate and                20 your former colleagues, Governor Kane of New Jersey
     21 certainly our most well-informed advocate on this             21 and Governor Winter of Mississippi, who agreed to
     22   issue for a long time.                                      22   be two of the seven members of our advisory board
     23                 But this is not a federal government          23   in this year-long effort we're mak~ng to look at
     24   power grab.     It's a question of whether it should        24   the state of race relations in America, race
     25   be national standards.     Neither is it inconsistent       25   reconciliations and where we're going into the 21st



                                                                 42                                                                 44
      1   with the fact that the Department of Education has           1   Century.

•     2
      3
          actually given more say to states and local school
          districts that our predecessors in how to spend
      4 federal funds.       So I think that that is not
                                                                       2
                                                                       3
                                                                                         I think all of us know there is still
                                                                           some unfinished business represented by the
                                                                       4 continuing debates we have in America over
      5   accurate.                                                    5   affirmative action and other issues.
      6                 Now the third, and the legitimate              6                 But what I think has not been as clearly
      7   concern that a lot of you have is that you already           7   thought through are the implications of where we're
      8 have sometimes more than one other testing regime.             8 going racially as a country.
      9   That is a legitimate concern.                                9            Today Governor Cayetano is the governor
     10                 And so we have to work with you if we're      10   of the only state in America that has no majority
     11   going to ask you to participate in this to try to           11   race.   In Hawaii, about a third of the people are
     12 reconcile these things so that you're not                     12 of European heritage, about a third of the people
     13 overburdened in terms of the administrative time,             13 of Japanese heritage, maybe a little lower, both,
     14   the time the kids spend, all that, I understand             14   about 18 percent of Philippine heritage, about 16
     15   there are practical implementation issues that I            15   percent Native Pacific Islanders.
     16   consider legitimate.     But I think we can work            16                 But within five years, the state of
     17   through those.                                              17   California will have no majority race.     And unless
     18                 I just have to say, though, I do not          18   there is a dramatic change in both patterns and
     19 believe that we will be the leading economy in the            19   immigrat~on patterns, I mean a dramatic change,
     20 world 50 years from now unless we can do a more               20 within 30 to 40 years in our nation as a whole


•    21 uniform job of getting people out of high school
     22   with excellent world-class educations.
     23 believe that.
     24
                                                      I do not


                        You have to ask yourself whether you
                                                                      21 there will be no majority race.
                                                                      22
                                                                      23
                                                                      24
                                                                           of this.
                                                                                         We have to think about the ~mplications
                                                                                      I just welcomed all the delegates from
                                                                           Girls' Nation and Boys' Nation to the White House.
-1   25 believe that.       I don't believe that.   We've got the     25 And both the delegates from Girls' Nation and



•                                            LAURIE WEBB AND ASSOCIATES                                             Page 41 to Page 44
    REPORTER'S        TRANSCRIPT OF PLENARY SESSION                                         NATIONAL GOVERNORS'     ASSOCIATION

•   MONDAY, JULY28,         1997

                                                                   49                                                              51
    1    Children's Protective Center.       Through Dr. Sia's          1    in the Social Security Act that saves, in the State
    2    efforts, the Hawaii Family Stress Center which he              2    of Alaska, almost $1 million annually.
    3                                                                   3               Governor Knowles says one of Chris's


•
         co-founded launched Project Healthy Start, an
    4 integrated early intervention initiative that is                  4 major assets is her ability to connect with public
    5 now a national model adopted by many states.                      5    assistance clients.   Her warmth and human touch
    6                 Governor Cayetano says as a result of             6    make a huge difference for the people she serves.
    7 Dr. Sia's deep commitment, his efforts have placed                7                  (Applause.)
    8 Hawaii in the forefront of such areas as childhood                8            GOVERNOR VOINOVICH: Our next awardee is
    9 development, child abuse prevention, pediatric                    9 James K. Haveman, Director of the Michigan
    10 emergency care and comprehensive health planning.                10 Department of Community Health.      Mr. Haveman is
    11                      (Applause. )                                11 being honored for dedicating his life to helping
    12                 GOVERNOR RIDGE:     Mr. Chairman, these are      12 people with disabilities and those who need more
    13 very important and prestigious awards, and I would               13 coordinated and integrated health care.
    14 ask the indulgence of everyone in the audience as                14              He presided over an unprecedented shift
    15   we recognize the men and women that we celebrate               15   to more effective, compassionate, community-based
    16 and honor today.       And if you have any                       16 mental health care and has implemented a managed
    17   conversations, to carry them outside the meeting so            17   care strategy to make the State of Michigan a more
    18   we can recognize these distinguished citizens.                 18   savvy provider of medical services.
    19                 GOVERNOR VOINOVICH:     Thank you, Governor      19              He has been described as a problem
    20 Ridge.      Could we have the conversation eliminated?           20 solver with great courage, a public servant who
    21                 Our next winner is from Nevada, and that         21 quickly responds to challenges with creativity,
    22 winner is Sarah Longaker, executive director of the              22 compassion and insight.      Congratulations,
    23   Children's Cabinet, Inc.        Mrs. Longaker was              23   Mr. Haveman.
    24 nominated by the State of Nevada by Governor                     24                     (Applause. )
    25 Miller.       And the organization aims at establishing          25              GOVERNOR VOINOVICH:    The last category



                                                                   50                                                              52
     1   a lasting community-wide, cooperative effort                    1   is Dr. R. Gregory Browning, who is the director of
    2    between the private sector and governmental                    2 the Office of Budget and Management from the State
     3   agencies to address the needs of children and their            3    of Ohio.
     4   families.                                                      4               We were really proud to recommend Greg
     5                 For the past ten years the Children's            5    as a recipient of this award.    As I mentioned to
     6   Cab~net has established an independent Family                  6    you in the Governors Only session, I'm very, very
     7   Resource Center to serve as a focal point in the               7 proud of my Cabinet, many of who go down as serving
     8   community for public and private services to                   8 longer than any in the State of Ohio, and it's
     9   children, youth and families.                                  9 interesting, 11 of my Cabinet members are either
    10                 Governor Miller is very, very proud of           10   the chairmen or president of their respect~ve
    11   you, Sarah, for your dedication to turning ideas               11 organizations.     And as I say, I'm very proud of
    12 into action, and she has been proven to be a very,               12 what they have done.
    13 very effective advocate.          Congratulations.               13              Dr. Browning is be~ng recognized today
    14                      (Applause. )                                14   for, first of all, taking on the challenge of
    15                 GOVERNOR VOINOVICH:     From Alaska we have      15   Ohio's $1.5 billion deficit, reducing spending to
    16 Chris Ashenbrenner, who is a Welfare Reform Officer              16 its lowest growth in 30 years, moving our rainy-day
    17   with the Alaska Department of Health and Social                17   fund from 14 cents to almost $1 billion dollars,
    18   Services.                                                      18   for being responsible for Ohio receiv~ng its first
    19                 Miss Ashenbrenner    is a 1S-year veteran        19 bond rating increase in 17 years.
    20 of the Department, and during that time she helped               20            And it's also interesting that he's not



•   21 pass the state's welfare reform laws and develop                 21 only a budget guy, but he's also my senior policy




,
    22 policies necessary to implement state and federal                22 advisor.     Our Supreme Court ruled that our
    23   reform.                                                        23   education system wasn't thorough and efficient.
    24                 In 1992 Miss Ashenbrenner received a             24 And I needed somebody to head up a committee to
    25   legislative citation for her discovery of a change             25   come back with a responsible reaction to that Court



•                                              LAURIE WEBB AND ASSOCIATES                                             Page 49 to Page 52
    REPORTER'S        TRANSCRIPT OF PLENARY SESSION                                     NATIONAL GOVERNORS' ASSOCIATION

,   MONDAY, JULY 28, 1997

                                                                 57                                                              59
     1   few minutes that we have left we're going to call             1   of welfare, they don't know what kind of training
    2    on Governor Carper and Governor Thompson to talk             2    that they can get, they don't know what kind of
    3    about Welfare-to-Work Partnership.      And Tommy, if        3    problems they're going to inherit if they do so.
    4    you will start, we'd appreciate it.                          4               We have found in Wisconsin, however,
    5                 GOVERNOR THOMPSON:    Thank you, very           5    that if you hire a welfare mother and give her some
    6    much, Chairman Voinovich.     It's a pleasure to be          6    training, she turns out to be one of your most
    7    able to talk to you about the Welfare-to-work                7    productive as well as one of your most loyal
    8 Partnership. It was something that we launched at               8 employees.
    9 the White House on May 20th this past year, and it              9               And that's one message I'm sure Governor
    10 was set up with the private sector, the White House            10   Carper as well as myself made across America.
    11   and an advisory committee chaired by myself and              11              On August 12 of this year we're going to
    12 Governor Carper.                                               12 have a kick-off Welfare-to-Work Seminar, it's going
    13                Both of us agreed to co-chair this              13   to be kicked off in St. Louis and is going to end
    14 because both of us believed that it's very                     14   up on August 22 in Milwaukee, Wisconsin.    We're
    15   important to encourage the private sector to hire            15 hoping to get a lot of businesses and a lot of
    16 welfare mothers and put them into an opportunity to            16 other individuals to come in so we can discuss
    17   have a decent job.                                           17   this, but really get the message out to hire
    18                Eli Segal is a successful entrepreneur          18   individuals off of welfare.
    19 and he is also the chair of this Welfare-to-Work               19              I'm excited about it, I th1nk it was a
    20   Committee.    And Jerry Greenwald, who is the head of        20   good thing, I think it's something that all
    21 United Airlines is the chairperson, and the                    21 Governors should buy into.      And we would hope that
    22 honorary co-chairmen are Governor Carper and                   22 all of you would sign our Advisory Council, there's
    23   myself.                                                      23   some information that was handed out today, it's at
    24                At the White House on May 20, CEOs              24   your desks, and we would hope that all of you would
    25   gathered with government officials and business              25   do that.



                                                                 58                                                              60
     1   off1c1als from Monsanto, Burger King, Sprint,                 1              The individuals who began, and Gary
     2   United Airlines and UPS, and our job is to try and            2 Cart, would you please stand up.      Those individuals
     3   see how many people we can put into the workplace.            3   are the staff people from Eli Siegel and the
     4                 They are trying to get a million more           4   advisory committee, and we would like to have all
     5   individuals off of welfare and get them into an               5   of the governors be able to sign up and be involved
     6   opportunity to have a decent job.                             6   in this.
     7                We also asked people there, there was            7              Now I'd like to pass it on to my friend
     8   one indiv1dual in particular who I think probably             8   and co-chair, Governor Carper from Delaware.
     9   symbolized what I think is the best of hiring                 9              GOVERNOR CARPER:    Thank you, very much.
    10 welfare mothers, who happens to be an individual in            10 We're trying to change a couple of different
    11 my state.                                                      11   cultures with respect to welfare.
    12                 George Jensen is an African American who       12              We're trying to change the culture of a
    13   is president of General Converters and Assemblers,           13   person who has been on welfare, in some cases for
    14   Inc., has a business of 211 individuals, of which            14   many years, to get the expectation to go to work,
    15 one-half are individuals that he's hired off of                15 and I'm going to continue on to work to provide for
    16 welfare.       He's going to expand one hundred                16 my family.
    17   employees this year and of which he intends to hire          17              We're trying to change the culture in
    18   100 percent off of welfare.       And that's the kind of     18 our own bureaucracies, the folks who have somebody
    19 example that we need.                                          19 walk in the door and say, I want to sign up for
                                                                      20   welfare.   So that we say, Well, let's help you find



•
    20                 We are attempting to go across the
    21 country giving speeches to business groups                     21 a job .
    22 im~loring upon them the need to hire individuals               22              The third culture that we're trying to
    23   off of welfare.     Also to answer their questions.          23   change is ones that Tommy and I focused on, what
    24                 The big problem is we have a lot of            24   the President mentioned, and that is the culture

J   25   bus1nesses that would like to hire individuals off           25   within the private sector that in order for us to



•                                             LAURIE WEBB AND ASSOCIATES                                          Page   57 to   Page 60
NATIONAL GOVERNORS' ASSOCIATION




         Held at The Mirage
  3400 Las Vegas Boulevard South
     Las Vegas, Nevada 89109




    PLENARY SESSION
    Monday, July 28, 1997




        LAURIE WEBB & AsSOCIATES
        (OURT     REPORTERS

         517 South Ninth Street
        Las Vegas, Nevada 89101
            (702) 386-9322
                                                                            1




 1

 2

 3

 4

 5                NATIONAL     GOVERNORS'          ASSOCIATION
 6

 7                               *********
 8

 9                           PLENARY        SESSION
10
11                               *********
12
13
                         Held at The Mirage
14                 3400 Las Vegas Boulevard South
                      Las Vegas, Nevada 89109
15
                       Monday,        July 28, 1997
16
                                 *********
17
18
19
20
21
22

23   Reported    by: Laurie H. Webb,              CCR No. 50, RPR-RMR
24
25




                LAURIE WEBB & ASSOCIATES                   (702) 386-9322
                     517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        2




 1                 GOVERNOR          MILLER:           May I have your
 2   attention,    please.
 3                 Good morning,              Governors,            and ladies       and
 4   gentlemen.     It's my pleasure                  to welcome            you to our
 5   city and our state,             and the opening                plenary     session
 6   of the National         Governors'           Association's              89th
 7   Annual    Meeting.
 8                 I hope you enjoy Las Vegas.                             We built     it
 9   for you.     And the many attractions                         which     are world
10   renowned.     And one of those,                  of course,            is our
11   selection    of fabulous           restaurants,               and tonight       each
12   of you will have an opportunity                       to sample          many of
13   them at our special             Taste      of Las Vegas               at the
14   Fremont    Street     Experience.
15                 I want to thank everyone                         who is helping
16   to make your stay in Nevada                    pleasant         and
17   memorable.     And also those of you who are going                               to
18   pawn your    return       tickets        in times of need,                let us
19   know.
20                 As you know,             today      is a very busy day
21   for governors.          We're privileged                to have the
22   President    of the United             States       and the award
23   winners    for Distinguished               Service        of State
24   Government.
25                 We also have a Governors                         Only Session        to




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                    3




 1   discuss    topical   issues       such as education,                 jobs,
 2   transportation,      and our Congressional                     legislative
 3   priorities    for 1997-98.
 4                 In addition,          we have meetings                of the NGA
 5   standing    committees       to discuss          a number          of vital
 6   issues.     Primarily      we will continue                 our focus on
 7   children.     In particular,            specific           actions    that
 8   Governors    can take for children                 from zero to
 9   three.
10                 With   that in mind,             I now officially              call
11   to order    the 1997 Annual           Meeting        of the National
12   Governors'    Association.            May I begin with a request
13   for an adoption      of the rules of procedure                       for this
14   meeting?
15                 GOVERNOR      VOINOVICH:             So moved.
16                 GOVERNOR       MILLER:         So moved          by our
17   Vice-chairman.       Is there         a second?
18                 GOVERNOR      NELSON:           I second.
19                 GOVERNOR      MILLER:           Is that Governor
20   Nelson?
21                 All those        in favor        signify         by saying
22   Aye.
23                 ALL GOVERNORS:              Aye.
24                 GOVERNOR      MILLER:          Any opposed?
25                         (No response.)




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           4




 1                  GOVERNOR       MILLER:         Motion       carried.             The
 2   nominating     committee        for the 1997 NGA Executive
 3   Committee    will be Governor              Christine        Todd Whitman
 4   of New Jersy,      Governor        John Rowland            of Connecticut,
 5   Governor    Mel Carnahan         of Missouri,            Governor          Tony
 6   Knowles    of Alaska,       and Governor           Terry      Branstad           of
 7   Iowa who will      serve      as the chairman.
 8                  Part of the rules              require        that any
 9   governor    who desires         to submit         a new policy             or
10   resolution     for adoption          at this meeting                after       the
11   July 11 mailing        will need a three-fourths                      vote       to
12   suspend    the rules.         If you have any such resolution
13   request,    please     submit      any proposal            in writing            to
14   Jim Martin     of the NGA staff,              who is probably               right
15   behind    me somewhere,         there      he is, you all know Jim,
16   or your    staff   does,      and he's right             there,       by 5:00
17   tomorrow,     or Tuesday.
18                  The President           will     join us momentarily.
19   In the interim       I'd like to calIon                  a couple          of my
20   colleagues     who have       issues       they'd      like to discuss
21   with us.
22                  First,     calIon         Governor        Patton       of
23   Kentucky.      And at the conclusion                 of Governor
24   Patton's     remarks,      if Governor          Thompson           would    come
25   up and assume      the chairmanship               for a moment,




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        5




 1   Governor    Voinovich         and I are going                 to depart     to
 2   escort    in our distinguished                guest.
 3                  GOVERNOR         PATTON:         Thank         you, Governor
 4   Miller    and I appreciate             the opportunity                 to talk
 5   with you a minute           about      an idea that's                 been helpful
 6   to us in Kentucky.
 7                  One of the things                that      I gain        from these
 8   meetings    is that       I learn        from you new ways                to do
 9   things,    and am inspired             to try new things                 to do
10   that way.
11                  So I want         to talk about                an initiative
12   that we have      in Kentucky            called       Empower          Kentucky.
13   Its emphasis      is to increase               efficiency,             reduce
14   costs,    improve     revenue        and improve              services,     using
15   technology     and training.
16                  We had to reduce                costs      if we were going
17   to have any money           to do new things                  with,     because    my
18   predecessors      had devised            a unique         and painless           way
19   to curry     favor with         the voters.             It's called         pass
20   along    now which      cuts taxes           during       the next
21   governor's     term     in office.             It's a politician's
22   credit    card.     It's promise             now, pay later.
23                  The net effect              is that during               my four
24   years    in office,       we will be phasing                   in six
25   different     tax cuts that will                 just about            eliminate




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          6




 1   all growth     revenue      in Kentucky.              So if we were to
 2   be able to embark         on a new program,                  a new
 3   initiative,     we had to do something                      differently.
 4                  That's     something         different          was to
 5   modernize     the State's        business         systems           and
 6   processes.      Compared       to a modern            business,           our
 7   state government        technology           is antiquated.                 Some
 8   computers     dating    back     into the early               '70s.
 9                  For decades         the acquisition                  of our
10   business     systems    was piecemealed               together            in small
11   expenditures     that could          go relatively              unnoticed.
12   After   all, you can't         get much credit                holding        a news
13   conference     to announce         the purchase              of new
14   computers.      You can't break             ground          on a software
15   package.      You can't       cut the ribbon                on a new
16   training    program.
17                  After    a quick        review       of the State's
18   business     systems    when     I took office               a year and a
19   half ago, we concluded             that we could              realize
20   recurring     annual    savings        of at least            one dollar           for
21   every   two dollars       invested         in technology              and in
22   training.      We were also convinced                   that a nickel              and
23   dime approach     wouldn't         work.
24                  But some massive             program,          something         on
25   the magnitude     of a $100 million                 investment             could




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              7




 1   generate     substantial         returns.           But even the
 2   prospect    of a 50 percent              return       on investment
 3   didn't    impress     the legislative               leaders           when    the
 4   budget    that    I had proposed            had little,               if any, new
 5   spending     for projects          or programs.
 6                    Realizing       that a strong                economy        was
 7   producing     revenue       in excess         of budgeted
 8   expenditures,       we devised           a surplus            expenditure
 9   program    which    would      appropriate            half of the
10   unbudgeted       revenue      to capital          construction               projects
11   on a prioritized          list,      and the other              half to our
12   Empower    Kentucky       program.
13                    I really      think       it passed           because        I don't
14   think    too many people           in the general               assembly
15   thought    we'd have a $200 million                     unbudgeted
16   surplus.      But we did.
17                    And then we engaged                the firm of Deloitte
18   & Touche     to design        a complete          reengineering               of
19   state government.            And     I understand              this is the
20   most    ambitious     project        of this kind undertaken                        by
21   any state.
22                    The methodology             used     is called          Business
23   Process     Reengineering.             And it allows              the workers
24   who deliver       services       on a regular             basis        to become
25   integrally       involved       in redesigning                the way that we




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                     8




 1   do business.     The approach             examines         key processes
 2   from the point of service               delivery,          and then works
 3   backwards    to completely          restructure            the way a
 4   process   functions.
 5                 Those people          who serve our customers,
 6   the taxpayers,     identify         duplication            or waste      and
 7   help design    a new system           that eliminates                many of
 8   the unnecessary      layers of control                 that have been
 9   added over time.
10                 In addition,          the cabinets             and agencies
11   are working    together       to identify            cross-functional
12   areas.    And one program           that I think the President
13   will mention     in his remarks             is to unify
14   transportation     programs.
15                 We were operating              four different             public
16   transportation     programs         like for Medicaid,                 or for
17   welfare   training.        We combined           them into one
18   transportation     program        that will save us $30
19   million   in future      increased          costs,         costs that have
20   not been taken     into account             in the numbers             that
21   I'll talk to you about            in a minute.
22                 Because      these reengineering                     processes
23   identified    $173 million          of investments,                 which would
24   create,   over a period         of time, five or six years,
25   from one to five or six years,                   would create           an




               LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          9




 1   additional       $150 million          in recurring             savings       or
 2   revenue    when    fully      implemented.              Almost        one for
 3   one.
 4                    These    projects         yielded        the greatest
 5   those    projects     yielding         the greatest             financial
 6   benefits    were     fully      funded,        because         we didn't       quite
 7   have    enough    money;      and the others              received        enough
 8   funds    to get started,           and I am confident                  that    I can
 9   go back    to the legislature                and get the remaining
10   $70 million       to fund this           entire       program.          Because
11   we've    obviously       succeeded         in getting           more    than a 50
12   percent    return     on investment.
13                    We discovered           numerous         inefficient
14   functions     which      simply      hadn't       been        changed     because
15   no one was looking            for ways         to change          them.       But
16   getting    the employees           to step back,               look at the
17   ultimate    goal    of their         program,         and redesign            a way
18   to accomplish       their       task,      we've      improved         morale       as
19   well    as efficiency.
20                    We've    empowered          our employees,             and the
21   result    is that we're          better        serving         Kentucky's
22   taxpayers.        At your       desks      I think        you will        find a
23   couple    of publications            that      summarize          our Empower
24   Kentucky     Program.         If you're          interested,           my staff
25   will    be glad    to make       more      information            available.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        10




 1                 Thank you, Governor                  Miller,           very much.
 2   Good day.
 3                                    (Applause.)
 4                 GOVERNOR         THOMPSON:           If Governors           just
 5   want   to remain     sitting,         the President              will be here
 6   shortly.
 7                 ANNOUNCER:            Ladies       and gentlemen,            the
 8   President    of the United            States,        accompanied          by
 9   Governor    Bob Miller         and Governor            George         Voinovich.
10                                    (Applause.)
11                 GOVERNOR        MILLER:          Mr. President,             it's
12   always    good to have you back where                        you began,        with
13   the Nation's    governors.
14                 Ten years         ago, as Chairman                 of the
15   National    Governors'        Association,             you dreamed         of a
16   new agenda    for making          America        work,        and established
17   five task forces         to deal with the most widespread
18   and crippling      barriers         to productive              lives:
19   welfare    dependency,         school       dropouts,          teenage
20   pregnancy,    adult      literacy,          and alcohol              and drug
21   abuse.
22                 In addition,            the first          float        in your
23   inaugural    parade      was Making          America          Work.      And as
24   President,    you have made your dreams                        a reality        for
25   millions    of Americans.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           11




 1                 All polls       show that Americans                    are
 2   optimistic    about    the future.             Why?        Their      job
 3   opportunities    are better           than ever.             Their
4    paychecks    are up, and affordable                  health        care is
 5   expanding    rapidly.
 6                 We especially           applaud        you for your
 7   determined    cooperation         with Congress              to produce           a
 8   balanced    federal    budget       and tax reliefs                 for the
 9   majority    of Americans.
10                 Additionally,           your childrens'                health
11   initiative    is a major        expansion          in health          care of
12   our most treasured         resource,         our children.
13                 And there       is a new reality                 coming       of
14   health    care for every        child       in America.
15   Congratulations.
16                 And since chairing               NGA, you have always
17   fought    hard for welfare          reform.          And now, too, this
18   is a reality.      America's          finally        working         for
19   millions    of people      because        government          welfare
20   programs    are changing        from a hand-out                to a hand-up,
21   for personal    dignity,        responsibility,                job training
22   and promising    work opportunities.
23                 And finally,          while      pursuing            these
24   dreams,    you have never         forgotten          the needs         for
25   rapid response     when natural             disaster         strikes.            You




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        12




 1   have responded     personally           and quickly            to several          of
 2   our requests    for assistance              over the past             few
 3   years.     And with    that, you have preserved                       the hopes
 4   and hard work of so many Americans.
 5                 Mr. President,            each governor               and
 6   millions    of Americans        are proud          to join with you in
 7   your continued     commitment           to Making           America       Work.
 8                 Ladies     and gentlemen,              the President            of
 9   the United    States.
10                         (Applause.)
11                 MR. PRESIDENT:              Thank      you, very much.
12   Thank you.     Thank     you, very much.                   Thank     you.
13   Thank you.     Thank     you.       Thank      you, very much.
14   Thank you.     Thank you.           Thank      you very much.                Thank
15   you.
16                         (Applause.)
17                 MR. PRESIDENT:              Thank      you, very much,
18   for the warm welcome.             I must       say, whenever              I come
19   back here,    I feel terribly             nostalgic,           and I'm eager
20   to
21   come,    I hate to leave,         and I always              know     there's
22   something    that we don't          entirely         agree         on, and
23   right before    we came in here,                I came into The
24   Mirage   and I saw Steve Wynn and Governor                           Miller,
25   and right before       we walked          in we walked              through




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           13




 1   another    room which        is set up just like                     this one,
 2   the committee       room,      and there         wasn't        a soul     in
 3   there,    and I thought,          Look,       I know we don't             agree
 4   on everything,       but this         is taking          it a little           far.
 5                  I was delighted              to see the real              thing.
 6   Thank    you, very much.
 7                  I want      to say that            -- to you,           Governor
 8   Miller,    and to Sandy,          and all your               team here     in
 9   Nevada,    Hillary     and I are very              grateful           to you     for
10   many    things,   but especially              for what         you've     done        on
11   early    childhood     development.
12                 And    I congratulate              Governor            Voinovich        on
13   assuming    the Chairmanship,               and I thank              him for what
14   he has done       for young       children.            It is a remarkable
15   record    in Ohio.
16                 And Governor            Carper,        congratulations.
17   I'm delighted       to be joined            here by many              members     of
18   the administration           who have been             here before,            and
19   will    be here when       I leave.
20                 And    I would        like to talk              today     about     a
21   number    of things,       but let me say that                   I have    tried
22   to establish       a better       and growing            partnership           with
23   the NGA since       I first       took office.                I've been
24   working    on one thing,          really,        which        is to prepare
25   our country       to go into this new century,                         where




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           14




 1   every American        who is responsible                  enough        to work
 2   for it has a chance             at the American                Dream,     where
 3   out of our vast diversity                  we build           one America,           and
 4   where    we will continue            to be the world's                  leading
 5   force    for peace      and freedom            and prosperity,             with
 6   opportunity       for all and responsibility                          from all,
 7   and an American         community          of all.
 8                  The Governors             who have been kind enough
 9   to share with me work              experiences            now going        back
10   nearly    20 years,       have played           a major         role in a lot
11   of what    I have tried          to do.
12                  Because        it seems         to me now, as it seemed
13   to me when     I took office,              although           I feel more
14   strongly    about     it now, that in some ways our major
15   challenge     is to develop            new ways         of thinking            and
16   acting    about   all of our problems,                    going        beyond
17   false choices       which       are imposed           on us by limited
18   thinking,     and by, beyond             old conflicts.
19                  It's so much easier                  to keep           fighting       in
20   the same old way than ot os tp imagine                                a new way of
21   doing business.           Indeed       a great        deal of my time
22   away from domestic            issues       is spent           trying     to get
23   people    to stop doing          things        that no one should                have
24   to ask them to stop doing.
25                  In Bosnia         people        live together             for




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                 15




 1   decades    in peace,         within       two months           they were
 2   shooting     at each other's              children.
 3                    In Ireland         they're        still       fighting            over
 4   600-year-old       disputes         when     the young           people           are
 5   dying    to get away         from     it.      But people              just can't
 6   escape    the habits         of old conflicts.
 7                    Thank     goodness         ours     are more
 8   constrained,       but we have            to do better.                 And       I must
 9   say, Governor,          the best        example        that      I have           seen of
10   a new way of doing             things       I saw two days                  ago when         I
11   was in Nevada          at Lake Tahoe.
12                    One of the most perfectly                       beautiful
13   large    lakes    in the world,             which      is losing             about      a
14   foot of its clarity             every       year     because           of
15   pollution,       and at Lake          Tahoe      I saw the most
16   conservative       business         people       sitting         with        the most
17   active    environmentalists               on the same page.
18                    They would         say the same things.                          You
19   couldn't     tell after         a point        who was in what                    group.
20   Because    they have         concluded          that     they cannot
21   preserve     their      economy       and grow         it without                also
22   preserving       their     environment.
23                    And    it was a marvelous                 thing.            I

24   couldn't     tell who was a Republican                         or who was a
25   Democrat,     I couldn't          tell who was in the public




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                       16




 1   interest       environmental             group      and who was               running             a
 2   local     business,         because        they     have         just     imagined            a
 3   future       that    is different            from     their        past.
 4                       And    in large        measure        that      is what             we all
 5   have     to be doing,          because        the     time        we're       living          in
 6   is so dramatically               different.             And       we've       tried          to
 7   do a little          bit of that           in Washington.
 8                       They    told     me when        I got         there       we
 9   couldn't       balance       the budget           and     reduce          the deficit
10   and    cut    spending       and     still      invest        more        money         in
11   education.           But we did.
12                       They    said     that     we couldn't               have       an
13   activist       federal       government           if we were              going         to cut
14   the size       of it and         reduce       regulations               and     give         more
15   authority       to the states.                But     the government                    is
16   300,000      people        smaller       than     it was          the day          I took
17   office,       and    I think       it's     clear       that       we've        got      a
18   different       kind       of partnership             here.
19                       So that's        the    sort      of thing            I'm
20   interested          in in all        these      areas.            Let me just                say
21   that    the most          important        test     of any         endeavor,             I
22   guess,       is results.
23                       If you     look     at the        economy,            we said            that
24   we thought          we had     to cut       the deficit             but       invest
25   more    in our people            and    their       future,         and we had                to




                  LAURIE WEBB & ASSOCIATES                         (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada    89101
                                                                                          17




 1   open new markets          to American           products          and services,
 2   and we've     got the strongest               economy         in a
 3   generation.
 4                  In crime,         we said we had to keep being
 5   tough    on criminals,          but we had to do some
 6   intelligent     things,         that we could             have reasonable
 7   restrictions     on keeping            guns out of the hands                   of
 8   people    who shouldn't          have      them, without              interfering
 9   with    the right     of Americans            to keep and bear             arms.
10   And we have done          it.
11                  We said we had to punish                       people     more,
12   but we had to give            children         something          to say yes
13   to.     And we've     had five years              of declining           crime,
14   and last year       the biggest            drop     in violent          crime       in
15   35 years.

16                  In welfare,           all of you proved                 that you
17   could be tough        on work        and still          supportive        of
18   children    and families.              That      it was a false
19   choice.     And we had the biggest                    drop      in welfare
20   rolls    in history.
21                  Today      I would        like to talk about               three
22   things,    basically.           One is finishing                the job of
23   balancing     the budget;          two,      is following             through       on
24   welfare    reform;      and third,           achieving          national
25   excellence     in education.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         18




 1                 First,      with regard            to the budget,               we're
 2   now in our final          stage of negotiations                      on the
 3   details    of legislation           to write         into law a balanced
 4   budget    agreement.
 5                 We know now that the deficit                            this year,
 6   when    it comes    in, will be over 80 percent                         less than
 7   it was in 1992 when           I took office,                 in January        of
 8   '93.

 9                 And some people              are saying,               Well,    we
10   ought    to just forget         about       it, you know,              the
11   economy    will keep growing              and the budget               will be in
12   balance    next year.         That      is dead wrong.
13                 It might        be in balance              next year,           or it
14   might    not, but if it is, the deficit                        will     start
15   going up again       immediately.              Why?
16                 Because        as as all of you know,                     you can't
17   reform    the entitlements            in an annual             appropriations
18   basis.     We have over $400 billion                     of savings           in the
19   entitlement       programs      in this balanced                budget
20   agreement,    and $900 billion                in savings             over ten
21   years.
22                 Secondly,         one of the things                    that keeps
23   the economy       going    is confidence             that we're          serious
24   about    fiscal    responsibility.               So if we walked               away
25   from the budget        agreement,           we don't          know what




               LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           19




 1   impact    it would      have on the stock                 market        and on
 2   individual     investment          decisions,           and on the other
 3   things    that keep our economy                 rolling.              So I think
 4   it would    be a mistake.
 5                  More     important,           this     is a remarkable
 6   budget.     Because       of the prosperity                   of our country,
 7   we have an historic            opportunity            to balance          the
 8   budget    in a way that reflects                  our values            and
 9   strengthens     our economy            as well.
10                  Historic        opportunity            to pass          a balanced
11   budget    that includes          the largest            increase         in
12   education     since     1965,      the largest            increase        in
13   helping    people     go to college             since         the GI Bill
14   passed    50 years      ago, and as Governor                    Miller        said,
15   the largest     increase         in health          insurance           and health
16   support    for children          since Medicaid                was enacted        in
17   1965, with a bipartisan                vote     from the Congress.
18                  We have a chance                to pass         a balanced
19   budget    that will move more people                      from welfare           to
20   work,    that protects          the environment,                that extends
21   the Medicare     Trust        Fund for a decade,                  although       to
22   be sure we will have to do more on that                                in the
23   future.
24                  We have an opportunity                     to give        the
25   American    people      a tax cut that is modest                        in the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             20




 1   context    of the overall           economy,         but still          will
 2   provide    much-needed         relief       to middle          class
 3   families,    will     support       education          and will         help to
 4   grow    this economy       in the future.
 5                  This    is an historic              opportunity,              it can
 6   be the achievement           of a generation,                 it can only
 7   happen    with big majorities               of people          in both        houses
 8   and both parties         coming       together         and I believe
 9   we're    on the verge        of achieving            it.
10                  We've     worked       hard over          the past weekend
11   trying    to work out some of the last difficulties
12   with which     many    of you are very               familiar.           I    am
13   pleased    to say that we have                reached        agreement            that
14   the American       people      will     get America's                version       of
15   George's    Hope    Scholarship           of $1,500 tax credit                     for
16   the first    two years         of college.
17                  There     will be other             things        in the
18   agreement    that are well-known,                  but it's clear                 to me
19   that    it must    have a child           tax credit           available           for
20   working    families      who need         it, from teachers                  to
21   technicians,       from firefighters               to small           business
22   people    across    this country.
23                  It should         include        $24 billion            for
24   childrens'     health      care,      it should          include        a tobacco
25   tax to help pay for that health                      care,       and it should




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                       21




 1   preserve    the fiscal       integrity         of the budget.
 2                 We need to be able to say to you, not
 3   just in five years,         but in ten years,                 we will
 4   continue    to be able to keep this budget                          in balance
 5   if we have a reasonably             successful             economy.
 6                 Over the long term,                the policy           of fiscal
 7   responsibility      is the best economics.                         And we dare
 8   not go back to a policy             of sustained             structural
 9   deficits.
10                 We will be punished                in the international
11   markets,    and the people          in every         state         in this
12   country    that you represent             will be hurt              if we do
13   that.
14                 And I think we're              going         to do it.         I

15   know that you have         some concerns             over the continued
16   debate    in the children's           health       package.           We're
17   trying    to work   through       that.
18                 Let me just say that                 I am striving             to
19   achieve    two principles         that      I do not believe             have
20   to be in conflict.
21                 First    of all,        I think        there         will be more
22   flexibility    than the states              have had in the past
23   ever    in the administration             of the Medicaid              program
24   and the new children's            health       program,            and there
25   will be no new costs           to the states               in the




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         22




 1   children's    health        program.
 2                 But it is important                  also     that we have an
 3   adequate    benefit       package       for children,               recognizing
 4   that there    are some problems                that children            have    in
 5   a way that    is more profound                than adults,            including
 6   problems    with vision,           with     hearing,        with      dental
 7   health.
 8                 I also think            it's important                that the
 9   American    people      know     if we're        going      to raise      this
10   tax money    on tobacco,           that the money             will     actually
11   add children       to the ranks           of the insured              and not be
12   used    in effect     for people          to be able          to drop other
13   insurance    schemes        to children          and put them on a
14   public    program.        Or that the money               would       be spent
15   on things    other      than adding           children.
16                 So that's          where      we are,       I feel good
17   about    it, and I think we're               on the right             track,    and
18   I will be surprised            and deeply          disappointed          if we
19   do not achieve        an agreement            in the near            future    that
20   you will    hopefully        be quite         supportive            of, and it
21   will    achieve    a sustained          big majorities               from both
22   houses    and both parties.
23                 The second           thing      that     I'd like to talk
24   about    briefly    is welfare          reform.         It has been           one
25   of my top priorities             for a long time,               as Governor




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                           23




 1   Miller    said,    for at least           ten years,          since     my
 2   predecessor       as head      of the Governors'               Association,
 3   Lamar    Alexander,       asked Mike         Castle       and I to head               a
 4   welfare    reform     task     force      a decade        ago.
 5                    Since    I took office,             we have given
 6   waivers    to 43 states          to help you launch                  your       own
 7   welfare    reform     experiments,           to make        welfare         a
 8   second    chance,     not a way of life.                  To promote
 9   independence       and family         and work        and
10   responsibility.
11                    And about       a year      ago,      I signed        the
12   welfare    reform     law which         has tough         work
13   requirements,       time     limits,        parental        responsibility,
14   and imposes       significant         responsibilities                on you
15   while    giving    you more        flexibility          to be fully
16   responsible       for the program.
17                    There    was a lot of debate                 about     the time
18   I signed    the bill        about     whether        welfare         reform
19   would    work,    about    whether        people      would         actually
20   move    from welfare        to work,        or whether          they could.
21                    I would     submit       to you that after                 four
22   and a half years,           that debate          should       be over,           based
23   on the evidence          that you have worked                 so hard           to
24   amass.     There    are now three            million        fewer people              on
25   welfare    than    the day I took office,                   and 1.2 million




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                      24




 1   fewer people     since    I signed        the welfare             reform    bill
 2   just a year     ago.
 3                  Nine    states    have     cut their         welfare        rolls
 4   by more    40 percent     in the last four years.
 5   Wisconsin     and Wyoming       have     cut their         welfare       rolls
 6   in half.     This     is the largest          decrease           in history,
 7   and we now have the lowest               percentage         of our
 8   population     on welfare       since      1970.
 9                 And you should           be very       proud        of your
10   role   in that achievement.              That     is something
11   America    can be proud       of.      The lowest          percentage        of
12   people    on public     assistance         since     1970.
13                          (Applause. )
14                  MR. PRESIDENT:            Now,     I know         there   are a
15   lot of reasons        for that,      the good        economy        has taken
16   some people     from welfare         to work.          There's       been    a
17   50 percent     increase     in child        support        collections
18   and that's     helped.      The minimum           wage     and the earned
19   income    tax credit     have made work more                 attractive
20   for people     on the margins,           that's      helped.
21                  But make     no mistake          about      it, our
22   council    of economic      advisors        did a very            rigorous
23   analysis     of this, making         clear      that a significant
24   percentage     of the people         who have moved               from
25   welfare     to work did so because              of state welfare




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada 89101
                                                                                                    25




 1   reform    initiatives            and because           of the new law.                     So
 2   we know    it can work.
 3                    Now,      let me also            say,     I know         that a lot
 4   of you were       concerned           as I was about               some of the
 5   things    that were          in the welfare              reform          law that          I
 6   felt should       not have been               there.         And we are moving
 7   forward    in this budget               agreement          to fix that.
 8                    Among       other      things,        the most           egregious
 9   cuts    in aid to legal             immigrants           will      be restored
10   under    agreements          we have        already        reached            with    the
11   Republican       and the Democratic                  leaders         in Congress.
12   And there       will     be another           billion        and a half
13   dollars    for food stamps,                 which      I think           is
14   important,       among       other      things,        because           it's
15   important       for us to remember                 that most             people       on
16   welfare    are single            mothers        and their          little
17   children.        But a lot of unemployed                         people        long-term
18   in this society            are single           men,     and we should                not
19   forget    about    them.
20                    And one of the things                     that      I like          so
21   much    about    what      Governor         Carnahan         has been           doing          in
22   Missouri     is the attempt               to integrate             the efforts                 to
23   put single       men into the work                  force with            the effort
24   to put people          from welfare             into the work                 force.
25                    If we can't            do this now, when                     our




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                   26




1    unemployment     is 5 percent          nationwide,            and when
2    prosperity     is virtually         uniform        across          the country,
3    but there are pockets           of people          who are still
4    unemployed,     when can we do it?
 5                  So I believe         that these restorations
 6   will help you in your efforts.                     And state officials
 7   were central     to this budget            debate,         without      regard
 8   to party,     and I thank you for your help                         in getting
 9   that into the agreement.
10                  But there's        also a lot more to be done.
11   You asked to be cut loose from the federal
12   government's     bureaucratic           strings,           and we did that,
13   but now you have continuing                responsibility              that is
14   greater,    and we have continuing                 responsibility
15   because    it's still a national               priority.
16                  So I think we ought               to take a look at
17   how we're     doing.     Our successes,              our shortcomings,
18   and our continuing         challenges          in four areas:             jobs,
19   child care, transportation                and child          support.
20                  First,    how well are we doing                      in creating
21   the jobs that are necessary                 to move people             from
22   welfare    to work?      If we require             people          to work,
23   they have to be able to work.                    There       have to be
24   jobs there     for them.
25                  Nearly    all the state welfare                      to work




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        27




 1   programs    include      the traditional             elements         of job
 2   search,    training,      education,          community,            work
 3   experience,     placement,         and unsubsidized                 jobs.
 4                  But now,       I think       this is remarkable,
 5   now,    36 of the 50 states            are doing         what       I would
 6   encourage     every    state      to do, using           welfare       checks
 7   to subsidize       private      employment          for a period            of
 8   time.
 9                  Almost     every      state      in America           today       has
10   more money     under     the welfare          program,        of the
11   reformed    law than you would              have     if the old law was
12   in place.      Because      we pegged         the block            grant    to the
13   time when welfare         roles were          the highest,            and
14   they've    dropped     at a record          rate.
15                  So the 36 states             that are doing             this,       I
16   predict,    will    find much,         much greater            success       in
17   getting    private     employers         to be willing              to take a
18   chance,    because     now that we've             moved      3 million
19   people    off the rolls,          you know as well                 as I do that
20   the remaining       adults      on the rolls,            by and large,
21   are the hardest        to place        in employment               in the
22   private    sector,     need the most            training,           need    the
23   most    support,    may have a false              start      or two, and we
24   cannot    do it unless        we have private              sector
25   support.      So for those         of you have done                 this,    I




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                                         28




 1   take my hat off to you.
 2                    We also know        that there          will be some
 3   places    in this country           where      the impact           of welfare
 4   is so great,       and the absence            of -- present            absence
 5   of private       sector    successful          job creation           is
 6   limited,    that we have          to do more.
 7                    So this agreement            will      include       $3
 8   billion    to go to communities               and states            to help you
 9   create    the work opportunities                in those           areas   where
10   the private       sector    will     not be able to provide                     them
11   alone.     And    I think     that     is a good         thing.
12                    We also have        secured        in this agreement
13   from Congressional          leaders,         a private         employer's
14   tax credit       to help hire        long-term         welfare
15   recipients,       and I believe          it is drawn           as narrowly
16   as we could       draw    it so that the tax credit                    cannot,
17   in effect,       be used    for people          other      than those           who
18   are actually       moving     from welfare            to work.         And      I
19   hope    that will help you to meet your goals                          in each
20   state.

21                    Pennsylvania        and Massachusetts                are among
22   the states       that are already           doing      this.         And   I also
23   believe    that,    if I might         say, that everyone                  of
24   these    workers    should      earn the minimum              wage.        And      I
25   know    there's    been    some debate          about      that,      I've




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                                               29




 1   heard    already     from Governor             Voinovich          and Governor
 2   Miller    what    your position             is, but        I just want           to
 3   reaffirm    my view,        that when          people          go into the
 4   workplace     and they        earn the minimum                  wage,     they
 5   ought    to be able        to earn        the minimum            wage,     they
 6   should    be eligible         for the earned               income        tax
 7   credit.     That's       what     I believe.
 8                    Whether      we can work            some resolution                 of
 9   some of the other            issues,        I don't        know.         But    I feel
10   very    strongly     about      that.         I know       right       now,     that
11   according     to our analysis,               the fact that we raised
12   the minimum       wage     and raised          the earned              income       tax
13   credit    is one of the reasons                  a lot of people
14   voluntarily       tried      to move        from welfare               to work,       and
15   I don't     think    we ought         to do anything              that would
16   undermine     that     incentive.
17                    Let me say, that we also have                           a welfare
18   to work partnership             nationally           with       CEOs of large,
19   medium    and small businesses,                  and I want             to thank
20   Governors     Thompson         and Carper          for agreeing            to
21   co-chair     the Advisory           Council        of that partnership.
22                    I think       it would        be a good           thing       if
23   every    state    had a similar             partnership.                North
24   Carolina,     I know,        is one of the states,                      the growing
25   list that have         established            them     locally.




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        30




 1                 My experience           has been         that private
 2   employers    are actually         quite      eager         to help us solve
 3   this problem.        If we will help them with                       some of
 4   their problems,       I think       that they will                 carry    a lot
 5   of this load for us, because                 all of America                has a
 6   vested    interest    in seeing         that welfare               is a second
 7   chance,    not a way of life.
 8                 MGM Grand       Hotel       here has hired              over a
 9   thousand    welfare    recipients          during          the past        few
10   years,    and the State of Nevada                has set a goal for
11   new casinos    to set aside           10 percent            of all their
12   positions    for former       welfare        recipients.              And we
13   thank you for that.
14                 The second        thing      that it seems              to me
15   that we ought    to look at is child                   care.         We all
16   know that it's essential,               if low income               families
17   are going    to succeed       at work and at home,                    and I
18   think we all agree         that raising            children          will
19   always    be our most      important         job.          It's more
20   important    than our day job.                It is the most
21   important    thing    any society           can do.
22                 And we can't          have people             with young
23   children    moving    into the work            force unless            they
24   know that their       children        are going            to be well        cared
25   for and safe and secure             in a nourishing                 environment




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        31




 1   while    they're       at work.
 2                    And we've       worked        hard     to add $4 billion
 3   to the welfare          reform     law to increase                child    care
 4   assistance       to you.       And states           are now receiving
 5   more    federal    dollars,        and about          half      the states
 6   over and above          that are increasing                   their     spending
 7   beyond    what    is needed        to receive           these         federal
 8   funds.     And    for those        of you who are doing                   that,    I
 9   applaud    you.
10                    And    I think      the states           with        the biggest
11   drop    in welfare       loads would           say -- I see Governor
12   Thompson    nodding       his head         -- I believe               they would
13   say that that has been critical                       in their
14   endeavors.
15                    Florida,      Wisconsin          and a few other
16   states    have added        quite      a bit more             than required
17   under    the federal        law.       Some states             are creating
18   seamless    child       care systems           which      provide
19   subsidiaries       for all workers              below         a certain
20   income,    whether       they were once on welfare                       or not.
21   That    is a model       that I hope one day we'll                       be able
22   to have everywhere            in America.
23                    The First       Lady and I have worked                    on
24   this,    she particularly,             for a long time.                  We think
25   every    child    should      have access           to quality           child




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                32




 1   care.     And we think            it's the next great                    frontier.
 2   We're    going       to make      sure all Americans                    can succeed
 3   at home and at work.
 4                    On October          23rd we're           going         to have       the
 5   first ever White             House     Conference             on Child         Care       to
 6   discuss    the strengths             and weaknesses               of the present
 7   system    and what         else we have           to do.          And     I hope you
 8   all will be involved               in that and will                have
 9   representatives            there.
10                    The third         thing       we have          to do is to make
11   sure there's          adequate       transportation               for those
12   moving    from welfare            to work.          Because         the jobs,             the
13   training    programs          and the child             care centers             are
14   often    outside       their     neighborhoods.
15                    I    must    say,     I   thought        I     knew     a lot about
16   welfare,    but until           we actually           got into the end of
17   the law here,          I   was unaware           that only          six percent
18   of the people          on welfare          have     cars.         And that           in
19   many big cities,             no matter         how long people                 are
20   willing    to ride the bus and the subway,                               they will
21   never    get to the available                  entry      level         job.     That
22   is a stunning          statistic.
23                    At the same time,                 there        are a lot
24   suburbs    where       businesses          need new workers                and
25   Congress,    therefore,             I think        should        put     in its new




                LAURIE WEBB & ASSOCIATES                           (702) 386-9322
                           517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        33




 1   transportation       bill,      the proposal           I've made        for
 2   $600 million       to help      states      and localities             devise
 3   transportation       strategies          to move people              from
 4   welfare    to work.
 5                 Some communities              and states             have already
 6   started.     Kentucky       has an Empower             Kentucky
 7   initiative    that uses         the resources            of four
 8   different    cabinet      offices        and a free transportation
 9   brokerage    system      to assure         transportation             in all
10   areas    of the state.          And this will probably                  be
11   something    that all of us who come from states                             with
12   large    rural populations           where      there      are people         in
13   rural    areas on welfare          will have         to adopt.
14                 Michigan's          Project       Zero provides
15   transportation       in its effort            to put every            able
16   bodied    person    to work.
17                 In Wisconsin           -- this        is a stunning
18   statistic    to me -- only three                and a half percent                 of
19   the people    on welfare          have cars,          so the State           has a
20   job ride initiative            to van-pool          literally         thousands
21   of central    city workers           to suburban           jobs.
22                 Other      states      are spending            part of the
23   welfare    block    grant      you now have on
24   transportation.          And    I would       just encourage            you to
25   do more of it, and I ask you to please                             help me




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                                         34




 1   persuade    Congress     to put this $600 million                       in the
 2   new 1ST bill,      because       it will help you to do what
 3   you have to do to meet your goals                       of employment.
 4                 Finally,       let me say a word                 about     child
 5   support.     The Governors           have been          in the vanguard
 6   of insisting      on more uniform             tougher         child     support
 7   requirements.
 8                 The legislation             that has been passed,
 9   and the efforts       that we have made                 together        have led
10   to an increase      of 50 percent             in child         support
11   collections     between       '92 and        '96, and that is very
12   good.    That's    billions        of dollars.
13                 But, with        the unanimous                support     from
14   this body,    we made       sure in the welfare                     law there
15   were tough new measures              to help the states                 track
16   deadbeat    parents     across       state      lines.
17                 Today,      however,         as you saw from the
18   study that was published               a few days ago, not all
19   states   have put these measures                  in place.            This    is
20   one of the critical           steps      to welfare           reform.         And
21   the more people       who are obliged               to pay for their
22   children,    who can pay for their                  children,          are
23   unable   to escape      the obligation              to pay for their
24   children,     the more      there will be public                     money    to
25   spend on productive           ways to help the people                    who




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         35




 1   actually    have to have help.
 2                    So I would       urge     all the states              to put in
 3   place    these    tough      state-wide          child      support
 4   collection       mechanisms       as fully         and quickly          as
 5   possible.
 6                    Finally,      let me say that              I have      some
 7   concern    that the savings             from welfare,               which    has
 8   been very     considerable          in some states,                 will not be
 9   used    on welfare      reform      to move        all the people             who
10   can move     from welfare          into the work            force.
11                    We have     lowered       welfare        rolls       by $3
12   million    over    four and a half years,                   and that's         a
13   great    accomplishment.            But we know we've                 been
14   helped    by the other         things       that     I mentioned.
15                    Now,   I know      in some state             capitols        there
16   are big debates         about      how to use extra                 money    caused
17   by the fact that the block                  grant     was pegged            to the
18   peak welfare       case load,         and the case load is much
19   lower    in your    states.
20                    But I think         if we were         to divert           these
21   savings     to other      things,       away from welfare               reform,
22   it would     be a big mistake             that would          come home        to
23   haunt    the states       the next        time there          is an economic
24   downturn.        Anybody     who does         it I think            would    really
25   wind up regretting           it the next           time there          is an




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9tb Street, Las Vegas, Nevada 89101
                                                                                           36




 1   economic    downturn.
 2                    Even    in an economic              downturn          if people
 3   lose their       jobs,    if they have work experience                          now,
 4   if we can get all these people                       into the work             force
 5   now, then when they become                   unemployed,              as there
 6   will always       be some people             who are unemployed,                    they
 7   will be far, far more               likely       to be unemployed               for a
 8   shorter    period       of time and to get back                       to
 9   productive       work more quickly.
10                    Maryland       has decided           to take the money
11   that they have from lowering                     case loads            and they're
12   using    all of it for child               care,      transportation,                and
13   training    people,       and I think            that that is the way
14   to go.

15                    After    a year of this law, we know that
16   welfare    reform       will work.           We know it will.                  But we
17   know that we have a ways to go to make                                a cultural
18   dependency       a thing of the past.
19                    So in these         four areas,              for all you're
20   doing,    I applaud       you, but I would                urge you,           all of
21   you, to make       sure that you've               done everything               you
22   can in each area.
23                    Finally,       let me ask your help                       in one
24   other    area.     As all of you know,                  and particularly
25   those of you who served                with me know,              education         has




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            37




 1   been    not only    the centerpiece               of a lot of what                I'm
 2   trying    to do in this          second       term,      it's been           an
 3   obsession    of mine       throughout           my public            life.
 4                    We have made         a lot of progress                 since      the
 5   Nation    At Risk Report          was issued           in the spring              of
 6   1983,    and governors         have     led the way.                 But we have
 7   a lot more       to do.
 8                    In the State         Of The Union             Address        I
 9   asked    every    state    to adopt         high national              standards,
10   and by 1999 to participate                  in testing           every       fourth
11   grader    in reading       and every          8th grader             in math,      to
12   make    sure the standards            are being          met.
13                    Since    I issued        that     call,       governors          and
14   education    leaders       in six states             have      agreed        to
15   participate,       and I thank          the governors                of North
16   Carolina,    Maryland,         Massachusetts,                Michigan,
17   Kentucky,    and West        Virginia,          three        Republicans          and
18   three    Democrats,       along     with      the Department             of
19   Defense    schools       allover        the world            for stepping          up
20   to the challenge.
21                    I wish    Governor         Weld     were      here     for me to
22   thank    him, but I appreciate                the fact that he's
23   willing    to go to Mexico            and I hope we can get him
24   there.
25                                    (Applause.)




               LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          38




 1                 Last week,           Secretary          Riley      and I went to
 2   the National       Association           of Elementary                School
 3   Principals    where       we were able to announce                       -- thanks
 4   to the Coalition          of Grade         City Schools               -- that 15
 5   of the largest        school       districts          in this country,
 6   including    schools        in six of the seven                   largest
 7   cities    in America,         have committed              to adopt national
 8   standards    and to participate                 in the program.
 9                 This will get us us up to about                             20

10   percent    of the children             in America             who are now
11   committed    to be a part of this in 1999.
12                 Now this is an astonishing                          thing.       For
13   those    of us who have been at this for a long time,
14   just five years         ago, the idea that 15 of the
15   largest    cities     in America,           which       were written           off
16   in terms of their           schools        system,        would        come up and
17   say, Not only do we not wish                    to be written             off,
18   we're    willing    to be held accountable,                       and if our
19   kids aren't    measuring           up, we want            to know about           it,
20   is an astonishing           development           in the modern            history
21   of education       reform,       and something                we should        all be
22   very,    very excited         about      and grateful             for.
23                 Now,      I know there             is some reluctance
24   here,    and I would        just like to deal with a couple
25   of issues.




               LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          39




 1                  One is, the cities                wouldn't            do it for a
 2   long time because          they thought            that our kids
 3   couldn't    do it.       That's       the truth.             Said America
 4   has a higher       percentage         of poor kids than other
 5   countries,     America's        got a more           diverse          student
 6   body    than other     countries.            America's          got all these
 7   problems     in the way they work                than other            countries,
 8   and on and on and on.               And these          kids,         they just
 9   have too many       loads      to bear.
10                  My theory         is that kids with                   too many
11   loads    to bear need to be held to the highest
12   expectations       and need a good education                         more   than
13   anybody    else.
14                  And now we know we can do it.                            The
15   results    we got just a few weeks                   ago from the Third
16   International       Math     and Science           Tests,       which       include
17   a few thousand       kids      from America,             but they are a
18   representative       sample       by race, by region,                   and by
19   income,    have    for the very           first      time on any
20   international       test,      our fourth          graders           scored    way
21   above    the international            average        in math          and
22   science.     Way above         the international                 average.           It
23   had never    happened        before.
24                                    (Applause.)
25                  We know we can do it now.                         That's       the




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        40




 1   good news.       The bad news          is the kids in the 8th
 2   grade   still    scored below          the international
 3   average.     And we know why.
4                    When they reach adolescence,                        all the
 5   problems    of adolescence           come to bear,              they become
 6   more vulnerable       to the gangs,             the guns,           the drugs,
 7   all the other      things.         The middle           schools       in many,
 8   many of our states were organized,                          many of them are
 9   too big to be functional.                 They were organized                 when
10   our society      was a more        stable       and coherent            than it
11   is now.
12                   We know there are a lot of problems                           we
13   have to face, but we don't have to guess                             anymore
14   about whether      our kids can do it.                      It's not an open
15   debate.     They've     proved       that they could do this.
16   And we owe it to them.
17                   So we're not doing              them any favors by
18   not saying we're prepared                to be held to
19   international      standards.
20                   The second reservation,                     I think,     is that
21   somehow    this was a power            grab by the federal
22   government      to erode states'             constitutional
23   responsibility      for education             or local control                of
24   the schools.
25                   Now the Secretary             Governor          Riley    is




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         41




 1   going    to be here after           I leave,         and I know he's
 2   been here, but let me re-emphasize,                         our basic         role
 3   here    is to pay for the development                     of this test.
 4   And most of you now participate                      in the National
 5   Assessment       of Education         Progress.           Over 40 states
 6   do.
 7                    We participated            in helping         to pay for
 8   the development          of that test.             But it's a national
 9   test that is given           to a representative                    sample    of
10   students,     it has nothing            to do with          the federal
11   government.        They're       not government             questions,
12   government       standards,        government         anything.          We
13   helped    them to develop           the test.
14                    That's    what we propose              to do for all the
15   kids at the 4th and 8th grade                    level.        Not to have a
16   federal    standard,       but a national              standard.
17                    Governor      Romer      has been working              on that
18   for years,       when    I've handed         over the leadership                   of
19   the standards       movement,         and he took it up, he's
20   been,    I think,       perhaps     our most passionate                 and
21   certainly     our most well-informed                   advocate        on this
22   issue    for a long time.
23                    But this is not a federal                    government
24   power    grab.     It's a question             of whether            it should
25   be national       standards.          Neither        is it inconsistent




               LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        42




 1   with the fact that the Department                         of Education           has
 2   actually    given more         say to states              and local        school
 3   districts    that our predecessors                    in how to spend
 4   federal    funds.       So I think          that that is not
 5   accurate.
 6                  Now the third,              and the legitimate
 7   concern    that a lot of you have                   is that you already
 8   have sometimes        more than one other                     testing     regime.
 9   That    is a legitimate          concern.
10                 And so we have to work with you if we're
11   going    to ask you to participate                    in this to try to
12   reconcile    these      things       so that you're              not
13   overburdened       in terms        of the administrative                   time,
14   the time the kids spend,                 all that,            I understand
15   there    are practical          implementation                issues     that I
16   consider    legitimate.            But I think we can work
17   through    those.
18                  I just have to say, though,                            I do not
19   believe    that we will be the leading                         economy     in the
20   world    50 years     from now unless               we can do a more
21   uniform    job of getting            people       out of high            school
22   with excellent        world-class            educations.               I do not
23   believe    that.
24                  You have to ask yourself                        whether     you
25   believe    that.      I don't believe               that.        We've     got the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                   43




 1   finest    system       of higher          education          in the world,                it
 2   will    continue       to carry         us a long way, but we simply
 3   have to do a better               job in K through                    12.    And     I
 4   believe    this will help.
 5                    And     I   want     to implore           you to work with
 6   us and try to work               through        the legitimate
 7   administrative           concerns         you have of the duplication
 8   of tests    and the time and all that business.                                      We
 9   will do everything              we can to help with                      that.
10                    But     I    think     this      is a terrific
11   opportunity       for us, and now we know we can do it.
12                    So those         are the things                 I    wanted       to say
13   about    the budget           and welfare          reform            and education.
14   State    responsibilities               involving          education           and
15   welfare    reform,           but high national               priorities,             and
16   critical    to moving            these      forward        into the 21st
17   Century.
18                    Just very briefly                 let me mention                  one
19   more    thing.     I have been helped                    greatly            by two of
20   your    former    colleagues,             Governor         Kane of New Jersey
21   and Governor       Winter          of Mississippi,                   who agreed          to
22   be two of the seven members                       of our advisory                  board
23   in this year-long              effort       we're      making          to look at
24   the state of race relations                       in America,               race
25   reconciliations              and where        we're      going         into the 21st




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           44




 1   Century.
 2                  I think        all of us know there                    is still
 3   some unfinished         business         represented            by the
 4   continuing    debates         we have        in America           over
 5   affirmative     action        and other          issues.
 6                 But what          I think has not been as clearly
 7   thought    through      are the implications                    of where        we're
 8   going    racially     as a country.
 9                 Today Governor               Cayetano           is the governor
10   of the only state           in America          that has no majority
11   race.     In Hawaii,        about      a third        of the people             are
12   of European    heritage,           about       a third of the people
13   of Japanese     heritage,          maybe       a little         lower,     both,
14   about    18 percent       of Philippine             heritage,          about     16
15   percent    Native     Pacific        Islanders.
16                 But within           five years,            the state        of
17   California    will have no majority                     race.         And unless
18   there    is a dramatic          change       in both patterns              and
19   immigration    patterns,           I mean       a dramatic            change,
20   within    30 to 40 years           in our nation               as a whole
21   there will be no majority                  race.
22                 We have to think                 about      the implications
23   of this.      I just welcomed              all the delegates               from
24   Girls'    Nation    and Boys'          Nation       to the White           House.
25   And both    the delegates            from Girls'              Nation     and




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          45




 1   Governor     Carlson      from Minnesota              were Asian
 2   Americans.        In Nordic,         Minnesota.
 3                    This country          is changing             in dramatic
 4   ways.     Race,    ethnicity         and religion              is convulsing
 5   the rest of the world.                 If we can somehow                not only
 6   respect,    but actually           celebrate,           our diversity,           and
 7   still    have people        say, But the most                  important    thing
 8   is I'm an American            and we have one America,                    this is
 9   an unbelievable         opportunity            for us in a new
10   century.
11                    It can do as much              as anything            else to
12   preserve     our world        leadership          for the things           that
13   we care about,        and to make America                     really    work.
14                    And so I would            ask all of you over the
15   course    of the year,          and maybe         we'll        take it beyond,
16   we'll    be trying      to get in touch with                    the people       in
17   every    state.     I hope you will participate                         in this.
18   This will be a good healthy                    thing      for America.
19                    But it is also absolutely                      essential       to
20   the function       of this country              as we move            into the
21   21st Century.         If we can't            find a way to say it's
22   good,    whatever     our ethnic           heritage           is, and we
23   celebrate     it, but the most               important          thing    is we
24   are part of one America,                 we can't         achieve       any of
25   these    other    things      we want        to achieve           over the long




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                   46




1    run.
2                  And again       I say, if you think about what
3    the governors     are about,         getting       rid of false
                                                           ,

4    choices,    getting     rid of phony          debates       and going
 5   into the future,        this is at the core of that.
 6                 So the country's            in good shape, we're
 7   moving   in the right direction,                we've      got to finish
 8   the job of balancing          the budget,          follow        through     on
 9   welfare,    put education        on the front burner,                 and
10   learn to work and live together.                     If we do that,
11   then all of us together            will leave our
12   grandchildren     an America         that will be greater                  than
13   it is today.
14                 Thank you very much.
15                 (Applause.)
16                 MR. PRESIDENT:             Do you mind if I go
17   around   and shake hands?
18                         (Short Break.)
19                 GOVERNOR      VOINOVICH:            In Governor
20   Miller's    absence,     I think we ought                 to move on with
21   our agenda.     And we were going               to calIon           Governor
22   Thompson    and Governor        Carper      for brief            remarks    on
23   the Welfare     to Work Partnership,               but because         of the
24   time, we're     going    to move on to the recognition                       of
25   the Distinguished        Service       Award      winners.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        47




 1                  And as you know,             the National             Governors'
 2   Association     Distinguished           Service        to State
 3   Government     Awards    program        was established               in 1976
 4   by the NGA Executive           Committee,          and it's a way for
 5   governors     to bring     national         recognition             to their
 6   state's    valuable     civil     service        and private
 7   citizens.
 8                  In particular,           to focus attention                  on the
 9   commitment     of state administrators                     and the
10   important     contributions         private        citizens          make    to
11   state government        and to the arts.                   And the
12   individuals     that we're        recognizing              today     truly
13   represent     the best     states       have to offer               in public
14   service,    community      activism         and the arts.
15                 And    I want      to thank all of the governors
16   that submitted       nominations          for awards           this year,
17   the nominees     were all outstanding.
18                  In addition,         I'd like to thank Bob Walsh
19   who chaired     the selection           committee,           as well as
20   other members       of the committee.
21                  I'd also like to thank                  the members           of
22   the Arts Review       Committee,          Governor          Miller's        wife,
23   Sandy,    for the time that she put in in chairing                                the
24   panel    this year.      Sandy put in a great                      deal of time
25   to go through       the various         submissions            that were




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          48




 1   made    by the various         governors             around     the country.
 2                  Private        Citizen        and State          Official
 3   categories.      As I announce               each ward winner,              would
 4   they please     come      forward        along        with     their     governor,
 5   if present.
 6                  In the Arts           Award      area,         we will     begin
 7   with    the NGA awards          for Distinguished                 Service       to
 8   the Arts.      And Sandy          is out,        I    think,     getting        a
 9   picture    taken with         the President,              and I think           what
10   we'll    do is maybe        move     on then to the Private
11   Citizen    Award.       I'd like Sandy                to be here.          I'd
12   like her to be here             for the the arts presentation
13   because    she was so involved.                      We'll     move     to the
14   Private    Citizen      Award      winners.
15                  And our first             award        winner      from the
16   Private    Citizen      category,          and I think            all of you
17   agree    with me, that without                 our Public-Private
18   Partnerships,       without        the support            that we get from
19   private    citizens,        our job would              be so much more
20   difficult.
21                  The first one is from Hawaii,                            Dr. Calvin
22   Sia, who is a ardent             believer            in family-centered
23   preventative     approaches            to health          care        to ensure      a
24   child's    healthy      development.
25                  He initiated            the development                 of the




               LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             49




 1   Children's     Protective         Center.          Through           Dr. Sia's
 2   efforts,     the Hawaii        Family       Stress       Center        which       he
 3   co-founded     launched        Project        Healthy        Start,         an
 4   integrated     early     intervention             initiative           that       is
 5   now a national       model       adopted        by many        states.
 6                  Governor        Cayetano         says as a result                  of
 7   Dr. Sia's     deep commitment,              his efforts              have placed
 8   Hawaii    in the forefront            of such areas              as childhood
 9   development,     child       abuse prevention,                 pediatric
10   emergency     care and comprehensive                   health         planning.
11                           (Applause.)
12                  GOVERNOR        RIDGE:         Mr. Chairman,             these          are
13   very   important     and prestigious               awards,           and I would
14   ask the indulgence           of everyone           in the audience                 as
15   we recognize     the men and women                 that we celebrate
16   and honor     today.       And if you have any
17   conversations,       to carry         them outside             the meeting              so
18   we can recognize         these distinguished                   citizens.
19                  GOVERNOR       VOINOVICH:             Thank       you, Governor
20   Ridge.     Could we have the conversation                            eliminated?
21                  Our next winner              is from Nevada,                 and that
22   winner    is Sarah     Longaker,          executive          director            of the
23   Children's     Cabinet,        Inc.       Mrs.     Longaker           was
24   nominated    by the State           of Nevada          by Governor
25   Miller.     And the organization                 aims at establishing




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         50




 1   a lasting    community-wide,           cooperative           effort
 2   between    the private      sector       and governmental
 3   agencies    to address      the needs         of children           and their
 4   families.
 5                  For the past        ten years         the Children's
 6   Cabinet    has established         an independent                Family
 7   Resource    Center    to serve       as a focal point               in the
 8   community     for public      and private           services        to
 9   children,    youth    and families.
10                 Governor      Miller       is very,        very proud            of
11   you, Sarah,     for your dedication               to turning         ideas
12   into action,     and she has been proven                   to be a very,
13   very effective       advocate.         Congratulations.
14                         (Applause. )
15                 GOVERNOR      VOINOVICH:            From Alaska            we have
16   Chris Ashenbrenner,         who is a Welfare               Reform        Officer
17   with the Alaska       Department         of Health         and Social
18   Services.
19                 Miss Ashenbrenner             is a IS-year            veteran
20   of the Department,        and during          that time she helped
21   pass   the state's     welfare       reform       laws and develop
22   policies    necessary     to implement            state      and federal
23   reform.
24                  In 1992 Miss Ashenbrenner                   received        a
25   legislative     citation      for her discovery                  of a change




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada 89101
                                                                                    51




 1   in the Social       Security       Act that saves,                 in the State
 2   of Alaska,       almost    $1 million         annually.
 3                    Governor     Knowles       says one of Chris's
 4   major    assets    is her ability           to connect             with public
 5   assistance       clients.       Her warmth          and human         touch
 6   make a huge difference             for the people             she serves.
 7                          (Applause. )
 8                    GOVERNOR     VOINOVICH:            Our next awardee           is
 9   James    K. Haveman,      Director         of the Michigan
10   Department       of Community        Health.         Mr. Haveman         is
11   being    honored    for dedicating            his life to helping
12   people    with    disabilities         and those who need more
13   coordinated       and integrated           health      care.
14                    He presided       over an unprecedented                 shift
15   to more    effective,       compassionate,             community-based
16   mental    health    care and has implemented                       a managed
17   care strategy       to make       the State         of Michigan         a more
18   savvy provider       of medical          services.
19                    He has been       described          as a problem
20   solver    with great       courage,        a public        servant      who
21   quickly    responds       to challenges           with     creativity,
22   compassion       and insight.          Congratulations,
23   Mr. Haveman.
24                          (Applause.)
25                    GOVERNOR     VOINOVICH:            The last category




               LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        52




 1   is Dr. R. Gregory       Browning,         who is the director                  of
 2   the Office    of Budget       and Management             from the State
 3   of Ohio.
 4                 We were really proud                to recommend           Greg
 5   as a recipient     of this award.               As I mentioned            to
 6   you in the Governors          Only     session,        I'm very, very
 7   proud    of my Cabinet,       many of who go down as serving
 8   longer    than any in the State of Ohio,                     and it's
 9   interesting,     11 of my Cabinet             members        are either
10   the chairmen     or president          of their        respective
11   organizations.       And as I say, I'm very proud                        of
12   what they have done.
13                 Dr. Browning         is being         recognized       today
14   for, first of all, taking              on the challenge             of
15   Ohio's    $1.5 billion      deficit,        reducing         spending         to
16   its lowest    growth     in 30 years,           moving       our rainy-day
17   fund from 14 cents to almost                $1 billion           dollars,
18   for being    responsible        for Ohio receiving                its first
19   bond rating    increase       in 17 years.
20                 And it's also interesting                    that he's not
21   only a budget     guy, but he's also my senior policy
22   advisor.     Our Supreme        Court ruled          that our
23   education    system wasn't         thorough         and efficient.
24   And I needed     somebody       to head up a committee                   to
25   come back with a responsible                reaction         to that Court




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada 89101
                                                                                         53




 1   decision,       and Greg put together,                with      the help of
 2   you people,       the Governors'            response        to that, which
 3   is being       heralded     in most of the newspapers                    as a
 4   solid response          to that court decision.
 5                    And Greg,       it's a pleasure              for me to
 6   personally       present     this to you.             Greg      is not only a
 7   great public       servant,        but he's a great                 father,
 8   great    husband,       and a very,         very     fine, decent            human
 9   being.     And we're       really       glad that you've               given    a
10   part of your       life to the governors.
11                             (Applause.)
12                    GOVERNOR      VOINOVICH:            Well,     we're     going
13   to go ahead with the arts award.                        We will begin,              as
14   I say, Sandy was going               to do this, but we'll                   try to
15   pitch    in.
16                    It's an honor          and pleasure            to present
17   the Artistic       Production         Award      to the Western
18   Folklife       Center    of Elko, Nevada.               The center           is a
19   regional       arts organization            dedicated         to preserving
20   and presenting          the varied        folk traditions              of the
21   American       West through        research,         fieldwork         and
22   through    educational         programs.
23                    The center        is best known            for the annual
24   Cowboy    Poetry    Gathering,          which      attracts          8,000
25   people    to enjoy       cowboy     verse,       music,       crafts,        food,




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        54




 1   stories    and dancing.         The Western            Folklife          Center
 2   provides    a unique place          for people             to learn about
 3   and celebrate    many different               forms of art
 4   associated    with folk culture.
 5                 Accepting        the award on behalf                   of the
 6   Western    Folklife    Center       are Meg Laser,                 Sue Wallace
 7   and Joe Brown.
 8                          {Applause.}
 9                 GOVERNOR       VOINOVICH:            Next we'd like to
10   present    the Arts Support Award                to Dr. Oscar              E.
11   Remick,    retired    chairman        of the Pennsylvania
12   Council    on the Arts.
13                 Doctor Remick           has held leadership
14   positions    to three State Art Councils                       in Michigan,
15   New York and Pennsylvania,                contributing             his
16   expertise    to these councils              for more than 23
17   years.
18                 As chairman         of the Pennsylvania                    Council
19   on the Arts, Dr. Remick             made arts education                    its
20   highest    priority.       He developed            a regional            arts in
21   education    partnership        program,         boosting           arts
22   activity    in schools       throughout          the state,           and
23   attracted    new corporate          sponsors.
24                 And Governor          Ridge      says Dr. Remick                  made
25   the case for reconnecting               art and to dignity                  of the




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        55




 1   human   spirit    and provided           a basis        for a development
 2   of its citizenship          and for promoting                 the common
 3   good.
 4                  It's now my pleasure                 to present          this
 5   award   to Dr. Remick.
 6                  GOVERNOR      VOINOVICH:             Unfortunately            two
 7   of our award winners           could       not be with us today,
 8   but I would      like to briefly             recognize          their
 9   outstanding      contributions           and honor           them for their
10   efforts.
11                  In the Private            Citizen        category,        from
12   Michigan,     Dr. Russell        G. Mawby,          trustee         of the W.K.
13   Kellogg    Foundation.         And Dr. Mawby                is being     honored
14   for his tireless        efforts        in the nonprofit               sector
15   for more    than 30 years          at the foundation.
16                  As the founding             chairman         of both      the
17   Council    of Michigan        Foundations           and the Michigan
18   Nonprofit     Association,         he developed             one of
19   America's     most extensive           and active           networks        of
20   community     foundations.
21                  Governor       Engler       describes          Dr. Mawby          as a
22   dynamic    and sensible,         who has a special                  gift of
23   bringing    people    together         for the common               good.
24                  I'd just like to say that                      I hope all of
25   you are blessed       with      some of the foundations                     that




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           56




 1   we have    in our state.             I think        so often           these
 2   community    foundations           are doing          such a great             job,
 3   and too often we don't               give them enough
 4   recognition.
 5                  And finally,            this year we are presenting
 6   a special    Posthumous          Recognition            Award         in the Arts
 7   category    to the late Ardis                Krainik,         general
 8   director    of Lyric        Opera      of Chicago.
 9                  Until      her death          in 1997, Miss              Krainik
10   was internationally            recognized           as the guiding              force
11   that made Lyric         Opera      one of the truly                   great    opera
12   companies    of our time.
13                  She transformed               it from a financially
14   troubled    company       to one that has become                       a national
15   model    of world     excellence           and fiscal           strength.
16                  Governor        Edgar       described          Miss      Krainik       as
17   someone    who believed          that sound           fiscal          principles
18   must be applied         to the fine arts just as the
19   management     of any corporation.                    Her contributions
20   to the civic     light of Chicago                 were unparalleled.
21                  Let's give a round                 of applause            to all of
22   the award winners           that have been              recognized            here
23   today.
24                            (Applause.)
25                  GOVERNOR        VOINOVICH:             I think          that    in the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          57




 1   few minutes    that we have left we're going                         to call
 2   on Governor    Carper        and Governor            Thompson       to talk
 3   about Welfare-to-Work              Partnership.             And Tommy,          if
 4   you will start, we'd appreciate                      it.
 5                 GOVERNOR         THOMPSON:           Thank you, very
 6   much,    Chairman     Voinovich.            It's a pleasure           to be
 7   able to talk to you about the Welfare-to-work
 8   Partnership.        It was something               that we launched              at
 9   the White House on May 20th this past year,                               and it
10   was set up with the private                   sector,       the White       House
11   and an advisory         committee         chaired       by myself         and
12   Governor    Carper.
13                 Both of us agreed                to co-chair          this
14   because    both of us believed                that it's very
15   important    to encourage            the private           sector    to hire
16   welfare    mothers      and put them into an opportunity                             to
17   have a decent       job.
18                 Eli Segal          is a successful              entrepreneur
19   and he is also the chair of this Welfare-to-Work
20   Committee.     And Jerry Greenwald,                   who is the head of
21   United    Airlines      is the chairperson,                 and the
22   honorary    co-chairmen          are Governor           Carper      and
23   myself.
24                 At the White House on May 20, CEOs
25   gathered    with government             officials          and business




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                        58




 1   officials     from Monsanto,             Burger       King,       Sprint,
 2   United    Airlines      and UPS,         and our job is to try and
 3   see how many people             we can put into the workplace.
 4                  They are trying               to get a million              more
 5   individuals     off of welfare               and get them into an
 6   opportunity     to have a decent                 job.
 7                 We also asked              people       there,          there was
 8   one individual        in particular              who I think probably
 9   symbolized    what      I think        is the best of hiring
10   welfare    mothers,       who happens            to be an individual               in
11   my state.
12                 George        Jensen       is an African                American    who
13   is president     of General            Converters             and Assemblers,
14   Inc., has a business              of 211 individuals,                   of which
15   one-half    are individuals              that he's hired                off of
16   welfare.     He's going           to expand         one hundred
17   employees     this year and of which                    he intends         to hire
18   100 percent     off of welfare.                 And that's             the kind of
19   example    that we need.
20                 We are attempting                  to go across            the
21   country    giving     speeches         to business            groups
22   imploring    upon them the need to hire individuals
23   off of welfare.           Also     to answer          their       questions.
24                 The big problem                is we have a lot of
25   businesses    that would           like to hire               individuals        off




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Streett Las Vegas, Nevada   89101
                                                                                       59




 1   of welfare,       they don't        know what kind of training
 2   that they can get,           they don't          know what            kind of
 3   problems     they're     going      to inherit           if they do so.
 4                    We have     found      in Wisconsin,                however,
 5   that if you hire a welfare                  mother       and give her some
 6   training,     she turns       out to be one of your most
 7   productive       as well     as one of your most                     loyal
 8   employees.
 9                    And that's       one message            I'm sure Governor
10   Carper    as well as myself             made across            America.
11                    On August       12 of this year we're                   going    to
12   have a kick-off        Welfare-to-Work               Seminar,          it's going
13   to be kicked       off in St. Louis              and is going            to end
14   up on August       22 in Milwaukee,              Wisconsin.             We're
15   hoping    to get a lot of businesses                     and a lot of
16   other    individuals       to come        in so we can discuss
17   this, but really         get the message               out to hire
18   individuals       off of welfare.
19                    I'm excited        about       it, I think            it was a
20   good    thing,    I think      it's something                that all
21   Governors     should     buy into.            And we would             hope    that
22   all of you would         sign our Advisory                   Council,        there's
23   some information         that was handed               out today,            it's at
24   your desks,       and we would          hope that all of you would
25   do that.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         60




 1                 The individuals               who began,           and Gary
 2   Cart, would you please              stand up.            Those       individuals
 3   are the staff people             from Eli Siegel               and the
 4   advisory    committee,         and we would            like to have all
 5   of the governors         be able to sign up and be involved
 6   in this.
 7                 Now I'd like to pass                   it on to my friend
 8   and co-chair,       Governor        Carper        from Delaware.
 9                 GOVERNOR         CARPER:         Thank you, very much.
10   We're    trying    to change        a couple         of different
11   cultures    with respect          to welfare.
12                 We're      trying       to change          the culture          of a
13   person   who has been on welfare,                    in some cases            for
14   many years,       to get the expectation                     to go to work,
15   and I'm going       to continue           on to work to provide                    for
16   my family.
17                 We're      trying       to change          the culture          in
18   our own bureaucracies,              the folks who have somebody
19   walk    in the door and say, I want to sign up for
20   welfare.     So that we say, Well,                   let's help you find
21   a job.

22                 The third culture                 that we're           trying    to
23   change    is ones that Tommy              and I focused              on, what
24   the President       mentioned,          and that is the culture
25   within    the private        sector       that in order              for us to




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            61




 1   place    these people        in jobs, support               themselves           and
 2   improve    the lives of their               families,         is people          have
 3   to give them a job, give them a chance.
 4                 And the whole             idea behind           this
 5   partnership,     this Welfare-to-Work                   Partnership,              is
 6   for us, as governors,             we probably           know as much
 7   about welfare       reform       as anybody          in the country,               and
 8   who are probably          able to provide             the best advice                  to
 9   employers    in our states and other                    states,        to be
10   part of the advisory             council.
11                 And this is what works                    in our state,
12   this is what we're           doing to get people                    off of
13   welfare    and continue          working       and encourage
14   employers    in our own states               to create          a partnership
15   in their own state, participate                      in a couple            of
16   events    in our own state, be very public                           about       it,
17   and use our public           focus to encourage                 employers          to
18   provide    job opportunities              to those that are on
19   welfare.
20                  It's good for us, good for our state,
21   good for the welfare             recipients,          good      for employers
22   as well.
23                  Tommy,      you mentioned             the event         in
24   August,    August     12, kicks off in St. Louis.                           My hope
25   is when we leave here on Wednesday,                         that every




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                    62




 1   governor    is signed       up to be on the advisory
 2   council.     Everyone         of you signed            up, the third
 3   governor    behind     Governor        Thompson        and myself.           But
 4   I want    there    to be others.            And we just ask from
 5   from the heart       for each and everyone                     you to join
 6   us.
 7                 Thank      you.
 8                 GOVERNOR        MILLER:         Thank      you both very
 9   much,    and for your continued               leadership           on this
10   issue.
11                 I would       like as we break               for the next
12   program    for those       recipients         from Hawaii,           come back
13   up, we're    going     to retake         that photograph.
14                 We now have a Governors                    Only Session.
15   Since we're       running     a little        late, we have hearings
16   this afternoon       as well,        I would        encourage        and
17   request    that each of you go immediately                         to that.
18   We won't    have any time in between,                    and remind
19   let me remind       the Governors            that we have,           for the
20   governors    and former         governors,          a special        6:30 to
21   7:30 reception       in the Golden            Nugget       on the second
22   floor convention         area where         we will be entertained
23   by Bart Conner       and Nadia         Comaneci        before       the 7:00
24   Downtown    Fremont      Street      Experience          for all
25   attendees.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada 89101
                                                                           63




 1                So please,       we'll      adjourn         now to the
 2   Governors   Only Session.           Thank you all for being
 3   here.
 4

 5

 6

 7

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22
23

24

25




             LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                    517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                                  64




 1                         REPORTER'S                       CERTIFICATE
 2

 3   STATE OF NEVADA
                                  ss
 4   COUNTY     OF CLARK
 5

 6                    I, Laurie            H. Webb,                    Certified                Shorthand
 7   Reporter,       do hereby           certify                 that         I took down               in
 8   Stenotype       all of the proceedings                                   had in the
 9   before-entitled        matter                  at the time and place
10   indicated       and that thereafter                               said shorthand                   notes
11   were transcribed         into typewriting                                   at and under                my
12   direction       and supervision                        and that the foregoing
13   transcript       constitutes                   a full, true and accurate
14   record     of the proceedings                          had.
15                    IN WITNESS              WHEREOF,                   I have hereunto                     set
16   my hand and affixed                 my official                         seal in my office
17   in the County       of Clark,                     State           of Nevada,                this        l8~
18   day   of    ~                                        1997.
19

20

21
22

23

                                   ---------,
                                  --------
                                  e
24                            i
                              I                       Notary PubIIo-State Of Nevada ,
25                            I                            COUNTY OF CLARK          I
                              I.                .        LAURIE H. WEBB             :
                              I     '.        .'        My Appo/nIment ~
                              I
                              I        .... "U~"1
                                  No . <><rV"t"O'U-         January14.2000         '
                                                                                   I
                                  -------------------
                LAURIE WEBB & ASSOCIATES                                         (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada                         89101
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                       MONDAY, JULY 28, 1997

 $                            24:17; 27:5; 34:10; 42:20;       advisor 52:22                   area 36:22,24; 48:6; 62:22
                              64:23                            advisors 24:22                  areas 8:12; 16:20; 26:18;
 $1 51:2; 52:17               5:004:16                         Advls ~ 29:21; 43:22;           28:9; 33:10,13; 36:19; 49:8
 $1,500 20:15                                                  57:11; 5 :22; 60:4; 61:10;       ar n't 38:19
 $1.552:15                    6                                62:1                            arms 17:9
 $100 6:25                                                     adv cat 41:21; 50:13            ar und 46:17; 48:1
 $1509:1                      60o-year-old 15:4                affirmative 44:5                art 54:3,14,25
 $1738:23                     6:3062:20                        affixed 64:16                   Artistic 53:17
 $200 7:15                                                     affordable 11:4                 arts 47:11,14,22; 48:6,8,12;
 $2420:23                     7                                African 58:12                   53:13,19;
 $3 28:7; 35:11                                                afternoon 62:16                 54:10,12,19,19,20,21;
 $308:18                      7:00 62:23                       again 18:15; 46:2               56:6,18
 $4 31:2                      7:3062:21                        agencies 8:10; 50:3             Ashenbrenner 50:16,19,24
 $40018:18                                                     agenda 10:16; 46:21             Asian 45:1
 $600 33:2; 34:1              8                                :Dree 12:22; 13:3; 30:18;       aside 30:11
 $709:10                                                          :17                          ask 14:24; 33:25; 36:23;
 $90018:20                                                     agreed 37:14; 43:21; 57:13      42:11,24; 45:14; 49:14; 62:4
                              8,00053:24                       agreeing 29:20
 ,                            8018:6
                                                               asreement 18:4,20,25;
                                                                                               asked 23:3; 26:11; 37:9;
                                                                                               58:7
                              89109 1:0                        2 :13,18; 22:19; 25:7; 26:9;
                              89th 2:6                                                         Assemblers 58:13
 '70s 6:8                                                      28:7,12                         assembly 7:14
                              8th 37:11; 40:1; 41 :15          agreements 25:10
 '9234:11                                                                                      Assessment 41:5
 '9318:8                                                       ahead 53:13                     assets 51:4
 '9634:11
                              A                                aid 25:9                        assistance 12:2; 24:12;
                                                               aims 49:25                      31:4; 51:5
                               ability 51:4                   Airlines 57:21; 58:2             associated 54:4
 1                            able 6:2; 21:24; 22:12;         Alaska 4:6; 50:15,17; 51:2       ASSOCIATION 1:5; 3:12;
                              26:23; 28:10; 29:5; 31:21;      alcohol 10:20                    10:15; 23:2; 38:2; 47:2;
 1.223:25                     33:15; 38:3; 57:7; 60:5; 61:8
 1030:11                                                      Alexander 23:3                   55:18
                              above 31:6; 39:21,22            allows 7:23                      Association's 2:6
 10058:18                     absence 28:4,4; 46:20
 11 4:11; 52:9                                                Almost 9:2; 27:9; 51:2;          assume 4:25
                              absolutely 45:19                52:17                            assuming 13:13
 1243:3; 59:11; 61:24         abuse 10:21; 49:9
 1452:17                                                      alone 28:11                      assure 33:9
                              Accepting 54:5                  along 5:20; 37:18; 48:4          astonishing 38:12,20
 1538:4,14                    access 31:25
 15-year 50:19                                                alrea~ 25:10; 28:22; 29:1;       attempt 25:22
                              accompanied 10:8                33:5; 2:7                        attempting 58:20
 1644:14                      accomplish 9:18
 1752:19                                                      aHhough 14:13; 19:21             attendees 62:25
                              accomplishment 35:13            alwa/s 10:12; 11:16; 12:21;      attention 2:2; 47:8
 1844:14                      accordin~ 29:11
 196519:12,17                                                 30:1 ; 36:6                      attracted 54:23
                              account :20                     amass 23:24                      attractions 2:9
 1970 24:8,12                 accountable 38:18
 197647:3                                                     ambitious 7:20                   attractive 24:19
                              accurate 42:5; 64:13            America 10:16,23; 11:14;         attracts 53:24
 198337:6                     achieve 21:19; 22:19,21;
 1992 18:7; 50:24                                             12:7; 14:3; 24:11; 27:9; 30:5;   audience 49:14
                              45:24,25                        31:22; 38:7,10,15; 39:3,17;
 19971:3; 4:2; 56:9; 64:18                                                                     Au~ust 59:11,14; 61:24,24
                              achievement 20:6; 24:10         43:24; 44:4,10;                  aut orlty 16:15
 1997-983:3                   achieving 17:24; 20:9
 199937:10; 38:11                                             45:8,13,18,24; 46:12; 59:10      available 9:25; 20:19; 32:21
                              acquisition 6:9                 America's 11:18; 20:14;          average 39:21,22; 40:3
                              across 20:22; 26:2; 34:16;      39:5,6; 55:19                    award 2:22; 46:25;
 2                            58:20; 59:10                    American 14:1,2,7; 17:1;         48:6,11,14,15; 52:5;
                              Act 51:1                        19:25; 20:14; 22:9; 45:8;        53:13,17; 54:5,10; 55:5,7;
 20 14:10; 38:9; 57:24        acting 14:16                    53:21; 58:12                     56:6,22
 20th 57:9                    action 44:5; 50:12              Americans 10:25; 11:1,9;
 211 58:14                                                                                     awardee 51:8
                              actions 3:7                     12:4,6; 17:9; 32:2; 45:2         Awards 47:3,16; 48:7; 49:13
 21st 43:16,25; 45:21         active 15:17; 55:19             AmonQ 25:8,14; 28:21
 2259:14                                                                                       away 14:22; 15:5; 18:24;
                              activism 47:14                  analYSIS 24:23; 29:11            35:21
 2354:16                      activist 16:13                  announce 6:13; 38:3; 48:3        Aye 3:22,23
 23rd 32:4                    activ~ 54:22                    ANNOUNCER 10:7
 281:0                        actual ~ 22:10; 23:19; 28:18;   Annual 2:7; 3:11; 6:20;
                              30:2; 3 :16; 35:1; 42:2; 45:6                                    B
                                                              18:17; 53:23
 3                            add 22:11; 31:2                 annually 51:2                    back 6:8; 9:9,16; 10:12;
                              added 8:9; 31:16                answer 58:23
                              adding 22:15                                                     12:19; 14:9; 21 :8; 36:8;
 327:18                                                       antiquated 6:7                   52:25; 62:12
 3044:20; 52:16; 55:15        addition 3:4; 8:10; 10:22;      Anybody 35:24; 39:13; 61:7
 300,000 16:16                47:18                                                            backwards 8:3
                                                              anymore 40:13                    bad 40:1
 3400 1:14                    additional 9:1                  anything 29:15; 41:12;
 3517:15                      AddHional~ 11:10                                                 balance 16:9; 18:12,13;
                                                              45:11                            19:7; 21:4
 3627:5,15                    Address 3 :8; 50:3              applaud 11:6; 31:9; 36:20
                              adequate 22:3; 32:11                                             balanced 11:8; 18:3,19;
                                                              AfPlause 10:3,10; 12:10,16;      19:10,18
 4                            adjourn 63:1                    2 :13; 37:25; 39:24; 46:15;
                              administration 13:18; 21:23                                      balancing 17:23; 46:8
                                                              49:11; 50:14; 51:7,24; 53:11;    barriers 10:18
 40 24:4; 41 :5; 44:20        administrative 42:13; 43:7      54:8; 56:21,24
                              administrators 47:9                                              Bart 62:23
 4323:6                                                       applied 56:18                    based 23:22
 4th 41:15                    adolescence 40:4,5              appreciate 5:4; 37:22; 57:4
                              adopt 33:13; 37:9; 38:7                                          basic 41:2
                                                              approaCh 6:23; 8:1               basically 17:22
 5                            adopted 49:5                    approaches 48:23
                              adoction 3:13; 4:10                                              basis 7:24; 18:18; 55:1
                                                              appr prlat 7:9                   bear 17:9; 39:9,11; 40:5
                              adu t 10:20                     appropriations 18:17
 526:1                        adults 22:5; 27:20                                               beautiful 15:12
 50 1:23; 7:2; 9:11; 19:14;                                   ardent 48:22                     become 7:24; 36:5; 40:5;
                              advice 61:8                     Ardis 56:7                       56:14

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                  Index 1
   REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                          MONDAY, JULY 28, 1997

    before-entltled 64:9             called 5:12,19; 7:22             49:1,23; 50:5                  considerable 35:8
    began 10:12; 60:1                Calvin 48:21                     chlldr ns' 11:10; 20:24        constitut s 64:13
    begin 3:12; 48:6; 53:13          can't 6:12..1.14,15;15:5;        ch Ice 17:19                   constltuti nal 40:22
    behalf 54:5                      18:16; 25:,,5; 30:22;            choices 14:17; 46:4            constrained 15:8
    behind 4:15; 61 :4; 62:3         45:21,24                         Chris 50:16                    construction 7:10
    bellev 20:8; 21 :19; 26:5;       capital 7:10                     Chris's 51:3                   cont xl 20:1
    28:15,23; 29:7; 31 :12;          capitols 35:15                   Christine 4:3                  continue 3:6; 14:4; 21 :4;
    42:19,23,25,25; 43:4             card 5:22                        cHation 50:25                  43:2; 60:15; 61 :13
    believed 56:17; 57:14            care 11 :4,11,14; 20:24,25;      cities 32:19; 38:7,15; 39:1    continued 12:7; 21 :15; 62:9
    beli ver 48:22                   26:19; 30:15; 31:3,18;           Citizen 48:2,11,14,16; 55:11   continuing 26:13,14,18;
    below 31 :19; 40:2               32:1,5,13; 36:12; 45:13;         citizens 47:7,10; 48:19;       44:4
    benefit 22:3                     48:23; 49:10; 51:13,16,17        49:18                          contributing 54:15
    benefHs 9:6                      cared 30:24                      citizenship 55:2               contributions 47:10; 55:9;
    best 15:9; 21 :7; 47:13;         Carlson 45:1                     city 2:5; 33:21; 38:4          56:19
    53:23; 58:9; 61:8                Carnahan 4:5; 25:21              civic 56:20                    control 8:8; 40:23
    better 9:21; 11 :3; 13:22;       Carolina 29:24; 37:16            civil 47:6                     convention 62:22
    15:8; 43:3                       Carper 13:16; 29:20; 46:22;      clarHy 15:14                   conversation 49:20
    beyond 14:16,18; 31 :7;          57:2,12,22; 59:10; 60:8,9        CLARK 64:4,17                  conversations 49:17
    45:15                            carried 4:1                      class 20:2                     Converters 58:13
    big 20:7; 22:21; 32:19;          carry 30:4; 43:2; 49:17          clear 16:17; 20:18; 24:23      convinced 6:22
    35:16,22; 40:9; 58:24            cars 32:18; 33:19                clearly 44:6                   convulsing 45:4
    blgg st 17:14,19; 31:10          Cart 60:2                        clients 51:5                   cooperation 11:7
    Bill 19:13; 23:18; 24:1; 33:1;   case 35:18,18; 36:11; 54:25      co-chair 29:21; 57:13; 60:8    cooperative 50:1
    34:2                             cases 60:13                      co-chairmen 57:22              coordinated 51 :13
    billion 18:18,20; 20:23;         casinos 30:11                    co-founded 49:3                core 46:5
    25:12; 28:8; 31 :2; 52:15,17     Castle 23:3                      Coalition 38:4                 corporate 54:23
    billi ns 34:12                   categories 48:3                  coherent 40:10                 corporation 56:19
    bipartisan 19:17                 category 48:16; 51 :25;          colleagues 4:20; 43:20         costs 5:14,16; 8:19,19;
    bH 16:7; 31 :16                  55:11; 56:7                      collection 35:4                21:25
    blessed 55:25                    caused 35:16                     collections 24:17; 34:11       couldn't 15:19,24,25;
    block 27:12; 33:23; 35:17        Cayetano 44:9; 49:6              college 19:13; 20:16           16:9,12; 39:3
    bard 43:22                       CCR 1:23                         Comaneel 62:23                 council 24:22; 29:21;
    Bob 10:9; 47:18                  celebrate 45:6,23; 49:15;        combined 8:17                  54:12,18; 55:17; 59:22;
    bodied 33:16                     54:3                             comes 18:6                     61:10; 62:2
    body 34:14; 39:6                 Center 49:1,2; 50:7;             comlnp' 11 :13; 20:8           Councils 54:14,16
    bond 52:19                       53:18,18,23; 54:1,6              commitment 12:7; 47:9;         countries 39:5,6,7
    boosting 54:21                   centerpiece 37:1                 49:7                           country 13:25; 19:6; 20:22;
    B snla 14:25                     centers 32:13                    committed 38:7,11              21 :12; 26:2; 28:3; 38:5; 44:8;
    B ul vard 1:14                   central 26:7; 33:21              committee 4:2,3; 13:2;         45:3,20; 48:1; 58:21; 61:7
    B ys' 44:24                      cents 52:17                      47:4,19,20,22; 52:24;          country's 46:6
    Branstad 4:6                     century 13:25; 43:17; 44:1;      57:11,20; 60:4                 COUNTY 64:4,17
    break 6:14; 46:18; 62:11         45:10,2"1                        committees 3:5                 couille 4:19; 9:23; 38:24;
    brief 46:22                      CEOs 29:18; 57:24                common 55:2,23                 60:10; 61:15
    briefly 22:24; 43:18; 55:8       certain 31 :19                   communities 28:8; 33:5         courage 51 :20
    bring 47:5                       certainly 41 :21                 community 14:7; 27:2;          course 2:10; 45:15
    bringing 55:23                   CERTIFICATE 64:1                 47:14; 50:8; 51 :10; 55:20;    Court 52:22,25; 53:4
    br kerage 33:9                   Certified 64:6                   56:2                           Cowboy 53:24,25
    Brown 54:7                       certify 64:7                     community-based 51:15          crafts 53:25
    Browning 52:1,13                 chair 57:19                      community-wide 50:1            create 8:24,25; 28:9; 61 :14
    budget 7:4' 11:8; 16:9;          chaired 47:19; 57:11             companies 56:12                creating 26:20; 31 :17
    18:1,4,11,19,25; 19:6,8,11,19;   chairing 11:16; 47:23            company 56:14                  creation 28:5
    21 :1,4; 25:7; 26:7; 43:13;      chairman 4:7; 10:14; 49:12;      Compared 6:6                   creativity 51 :21
    46:8; 52:2,21                    54:11,18; 55:16; 57:6            compassion 51 :22              credH 5:22; 6:12; 20:15,19;
    budget; 17:23                    chairmanship 4:25; 13:13         compassionate 51 :15           24:19; 28:14,16; 29:7,13
    budgeted 7:7                     chairmen 52:10                   complete 7:18                  crime 17:4,13,14
    build 14:3                       chairperson 57:21                completely 8:3                 criminals 17:5
    built 2:8                        challenge 14:15; 37:20;          comprehensive 49:10            crippling 10:18
    bureaucracies 60:18              52:14                            computers 6:8,14               critical 31 :13; 34:20; 43:16
    bureaucratic 26:12               challenges 26:18; 51 :21         concern 35:7; 42:7,9           cross-functional 8:11
    Burger 58:1                      chance 14:2; 19:18; 23:8;        concerned 25:4                 CSR 64:23
    burner 46:9                      27:18; 30:7; 61:3                concerns 21 :15; 43:7          cultural 36:17
    bus 32:20                        change 9:15; 44:18,19;           concluded 6:19; 15:20          culture 54:4; 60:12,17,22,24
    busln ss 6:5,6,10,18; 7:22;      50:25; 60:10,12,17,23            conclusion 4:23                cultures 60:11
    8:1; 14:21; 15:16; 16:2;         changed 9:14                     conference 6:13; 32:5          curry 5:19
    20:21; 43:8; 44:3; 57:25;        changing 11 :20; 45:3            Confidence 18:23               customers 8:5
    58:14,21                         cheeks 27:6                      confident 9:8                  cut 6:15; 16:10,13,24; 19:25;
    businesses 29:19; 32:24;         Chicago 56:8,20                  conflict 21 :20                24:3,5; 26:11
    58:25; 59:15                     child 11:14; 20:19; 24:17;       conflicts 14:18; 15:6          cuts 5:20,25; 25:9
    busy 2:20                        26:19,19; 30:15;                 congratulate 13:12
    buy 59:21                        31 :3,18,25,25; 32:5,13;         Congratulations 11 :15;         D
                                     34:4,6,10; 35:3; 36:12; 49:9     13:16; 50:13; 51 :22
     C                               child's 48:24                    Congress 11:7; 19:17;          dancing 54:1
                                     childhood 13:11; 49:8            25:1 f; 32:25; 34:1            dare 21:7
       cabinet 33:8; 49:23; 50:6;    children 3:7,8; 11 :12; 13:14;   Congressional 3:2; 28:13       dating 6:8
  2:7,9                              15:2; 17:12,18; 19:16;           connect 51:4                   day 2:20; 10:2; 16:16; 23:25;
        abin ts 8:10                 22:3,4,11,13,15; 25:17;          Connecticut 4:4                30:20; 31 :21; 64:18
•                                    30:18,23,24; 34:22,22,24;        Conner 62:23
       California 44:17                                                                              days 15:10; 34:18
       call 3:10; 4:19,22; 37:13;    38:10; 50:3,9                     onservative 15:16             dead 18:12
      46:21; 57'1                    children's 21 :16,24; 22:1;      consider 42:16                 deadbeat 34:16

   LAURIE WEBB & ASSOCIATES (702) 386-9322 Oepo-Merge                                                                       Index 2
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                        MONDAY, JULY 28, 1997

 deal 10:17; 14:21; 38:24;       16:5; 25:21; 26:17,20;          61 :9,14,17,21                 family 23:9; 49:2; 50:6;
 47:24                           27:5,15; 28:22; 31:8; 36:20;     mpl yment 27:7,21; 34:3       60:16
 death 56:9                      40:17; 56:2; 61 :12             Empower 5:12; 7:12; 9:23;      famlly-centered 48:22
 d bate 21 :16; 23:17,22;        d liar 6:20                     33:6                           far 13:4; 36:7,7
 26:7; 28:25; 40:15              d liars 6:21; 25:13; 31 :5;     emp wered 9:20                 father 53:7
 debates 35:16; 44:4; 46:4       34:12; 52:17                     nact d 19:16                  fav r 3:21; 5:19
 decade 19:21; 23:4              domestic 14:22                  encourage 27:6; 33:24;         favors 40:17
 decad s 6:9; 15:1               done 13:10,14; 17:10; 26:10;    57:15; 6f:13,17; 62:16         federal 11 :8; 16:13; 26:11;
 d cent 53:8; 57:17; 58:6        27:25; 36:21; 52:12             end 32:16; 59:13               31:5,7,17; 40:21;
 decided 36:10                   door 60:19                      endeavor 16:21                 41:10,16,23; 42:4; 50:22
 declsi n 53:1,4                 down 52:7; 64:7                 endeavors 31 :14               feel 12:19; 14:13; 22:16;
 decisions 19:2                  Downtown 62:24                  engaged 7:17                   29:9
 declining 17:13                 downturn 35:24; 36:1,2          Engler 55:21                   felt 25:6
 d crease 24:6                   Dr 48:21; 49:1,l; 52:1,13;      enloy 2:8; 53:25               few 12:2; 30:9; 31 :15; 34:18;
 dedicat d 53:19                 54:10,19,24; 50:5,12,13,21      enough 9:7,7; 14:1,8; 56:3     39:15,17; 57:1
 dedicating 51 :11               dramatic 44:18,19; 45:3         ensure 48:23                   fewer 23:24; 24:1
 dedicati n 50:11                dramatically 16:6               entertained 62:22              fieldwork 53:21
 deep 49:7                       draw 28:16                      entire 9:10                    fighting 14:19; 15:3
 deeply 22:18                    drawn 28:15                     entirely 12:22                 final 18:2
 Def nse 37:19                   Dream 14:2                      entitlement 18:19              finally 11 :18,23; 34:4; 35:6;
 deficR 16:9,24; 18:5,14;        dreamed 10:15                   entitlements 18:17             36:23; 56:5
 52:15                           dreams 10:24; 11 :24            entrepreneur 57:18             financial 9:5
 deficits 21:9                   drop 17:14,19; 22:12; 31:11     entry 32:21                    financially 56:13
 Delawar 60:8                    dropouts 10:19                  environment 15:22; 19:20;      find 9:22; 27:16; 45:21;
 delegates 44:23,25              dropped 27:14                   30:25                          60:20
 dellgl1ted 13:5,17              drug 10:20                      environmental 16:1             fine 53:8; 56:18
 deliver 7:24                    drugs 40:6                      environmentalists 15:17        finest 43:1
 d livery 8:2                    duplication 8:6; 43:7           erode 40:22                    finish 46:7
 Del Itte 7:17                   during 5:20,23; 30:9; 50:20     escape 15:6; 34:23             finishing 17:22
 Dem crat 15:25                  dying 15:5                      escort 5:2                     firefighters 20:21
 Democratic 25:11                dynamic 55:22                   especially 11:6; 13:10         firm 7:17
 Democrats 37:18                                                 essential 30:16; 45:19         First 4:22; 10:22; 13:23;
 dental 22:6                     E                               establish 13:22                18:1; 20:16; 21 :21; 26:20;
 d part 5:1                                                      established 10:16; 29:25;      31 :23; 32:5; 39:19; 48:15,21;
 Department 37:18; 42:1;         eager 12:19; 30:2               47:3; 50:6                     52:14,18
 50:17,20; 51:10                 early 6:8; 13:11; 49:4          establishing 49:25             fiscal 18:24; 21:1,6;
 dependency 10:19; 36:18         earn 28:24; 29:4,5              ethnic 45:22                   56:15,17
 described 51 :19; 56:16         earned 24:18; 29:6,12           ethniclty 45:4                 five 8:24,25; 10:17; 17:13;
 describes 55:21                 easier 14:19                    European 44:12                 21:3; 38:14; 44:16
 design 7:18; 8:7                economic 24:22; 35:23;          event 61:23                    fix 25:7
 desires 4:9                     36:1,2                          events 61 :16                  flexibility 21 :22; 23:15
 desks 9:22; 59:24               economics 21:7                  everyone 2:15; 49:14           float 10:22
 detail 18:3                     economy 7:6; 15:21; 16:23;      everything 13:4; 36:21; 43:9   floor 62:22
 determln d 11:7                 17:2; 18:11,23; 19:3,9;         everywhere 31 :22              Florida 31 :15
 devel p 14:15; 41:13; 50:21     20:1,4; 21:5; 24:15; 42:19      evidence 23:23                 focal 50:7
 devel ped 54:20; 55:18          Edgar 56:16                     examines 8:1                   focus 3:6; 47:8; 61 :17
 devel pment 13:11; 38:20;       education 3:1; 16:11; 17:25;    example 15:9; 58:19            focused 60:23
 41 :3,8; 48:24,25; 49:9; 55:1   19:12; 20:3; 27:2; 36:25;       excellence 17:25; 56:15        folk 53:20; 54:4
 d vise 33:2                     37:14; 38:21; 39:12; 40:23;     excellent 42:22                FolklHe 53:18; 54:1,6
 d vised 5:18; 7:8               41:5; 42:1; 43:1,13,14; 46:9;   excess 7:7                     folks 60:18
 didn't 7:3; 9:6                 52:23; 54:19,21                 excited 38:22; 59:19           follow 46:8
 differ nce 51:6                 educational 53:22               Executive 4:2; 47:4; 49:22     following 17:23
 diff rent 5:25; 6:4; 8:15;      educations 42:22                expand 58:16                   food 25:13; 53:25
 16:3,6,18; 33:8; 54:3; 60:10    effect 5:23; 22:12; 28:17       expanding 11:5                 foot 15:14
 differently 6:3                 effective 50:13; 51 :15         expansion 11 :11               force 14:5; 23:4; 25:23,24;
 difficult 48:20                 efficiency 5:13; 9:19           expectation 60:14              30:23; 35:10; 36:4; 56:10
 difficuRles 20:11               efficient 52:23                 expectations 39:12             forces 10:17
 dignity 11 :21; 54:25           effort 25:23; 33:15; 43:23;     expenditure 7:8                forefront 49:8
 dime 6:23                       50:1                            expendRures 6:11; 7:8          foregoing 64:12
 direction 46:7; 64:12           efforts 25:22; 26:6; 34:9;      Ex~rlence 2:14; 27:3; 30:1;    forget 18:10; 25:19
 dlr ctor 49:22; 51 :9; 52:1;    49:2,7; 55:10,14                36:3; 62:24                    forgotten 11 :24
 56:8                            egregious 25:8                  experiences 14:9               former 30:12; 43:20; 62:20
 disabilities 51 :12             either 52:9                     experiments 23:7               forms 54:3
 disappointed 22:18              Elementary 38:2                 expertise 54:16                forward 25:7; 43:16; 48:4
 disast r 11:25                  elements 27:1                   extends 19:20                  fought 11 :17
 discovered 9:13                 Eli 57:18; 60:3                 extensive 55:19                found 59:4
 discovery 50:25                 eligible 29:6                   extra 35:16                    Foundation 55:13,15
 discuss 3:1,5; 4:20; 32:6;      eliminate 5:25                                                 Foundations 55:17,20,25;
 59:16                           eliminated 49:20                F                              56:2
 disputes 15:4                   eliminates 8:7                                                 founding 55:16
 Di tinguished 2:23; 5:2;        Elko 53:18                      fabulous 2:11                  four 5:23; 8:15; 23:21; 24:4;
 46:25; 47:2; 48:7; 49:18        else 32:7; 39:13; 45:11         face 40:13                     26:18; 33:7; 35:12; 36:19
 districts 38:5; 42:3            embark 6:2                      fact 29:11; 35:17; 37:22;      fourth 37:10; 39:20
 diverse 39:5                    emerg ncy 49:10                 42:1                           free 33:8
 diversity 14:3; 45:6            emphasis 5:13                   false 14:17; 17:18; 27:23;     freedom 14:5
 div rt 35:20                     mpl yees 9:16,20; 58:17;       46:3                           Fr mont 2:14; 62:24
 Do tor 54:13                    59:8                            familiar 20:12                 friend 60:7
 does 4:16; 35:24                 mploy r's 28:13                famlll s 17:18; 20:3,20;       front 46:9
 doing 14:21,23,24; 15:10;        mployers 27:17; 30:2;          30:16; 50:4,9; 61:2            frontier 32:1


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Me'8e                                                                    Ind x 3
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                            MONDAY, JULY 28, 1997

full 64:13                         Grand 30:8                       hire 28:14; 57:15:              58:5,14,15,22,25: 59:16,18;
fully 9:2,6; 23:15; 35:4           grandchildren   46:12            58:17,22,25; 59:5,17            60:1,2
function 45:20                     grant 27:12; 33:23: 35:17        hired 30:8: 58:15               Indulgence 49:14
functional 40:9                    grateful 13:9; 38:22             hiring 58:9                     Inefficient 9:13
functl ns 8:4; 9:14                great 14:21' 28:4: 32:1:         hlst ric 19:7,10; 20:5          Informatl n 9:25; 59:23
fund 9:10; 19:21; 52:17            35:13; 47:24: 51:20: 53:7,7,8:   hlst ry 17:20; 24:6; 38:20      Inherit 59:3
funded 9:6                         56:2,11                          holding 6:12                    Initiated 48:25
funds 9:8; 31 :8; 42:4             greater 26:14: 27:16: 46:12      home 30:17; 32:3; 35:22         inHiative 5:11: 6:3; 11 :11 ;
future 8:19; 11:2; 16:3,25;        greatest 9:4,5                   honor 49:16; 53:16: 55:9        33:7,20: 49:4
19:23; 20:4; 22:19; 46:5           greatly 43:19                    honorary 57:22                  inHiatlves 25:1
                                   Greenwald 57:20                  honored 51:11; 55:13            Insight 51:22
 G                                 Greg 52:4; 53:1,5,6              ho~ 2:8: 20:15' 28:19;          insisting 34:6
                                   Gregory 52:1                     31 :21: 32:7; 37:23; 45:17;     Inspired 5:9
 gain 5:7                          ground 6:14                      55:24; 59:21,24; 61 :24         insurance 19:15; 22:13
 gangs 40:6                        group 15:19; 16:1                hopefully 22:20                 Insured 22:11
 Gary 60:1                         groups 58:21                     hopes 12:3                      Integrally 7:25
 gatllered 57:25                   grow 15:21: 20:4                 hoping 59:15                    Integrate 25:22
 Gathering 53:24                   growing 13:22; 18:11: 29:24      Hotel 30:8                      Integrated 49:4; 51 :13
 g neral 7:14; 56:7; 58:13         growth 6:1: 52:16                House 32:5; 44:24;              Integrity 21:1
 generate 7:1                      guess 16:22; 40:13               57:9,10,24                      inteOigent 17:6
 generati n 17:3; 20:6             guest 5:2                        houses 20:7: 22:22              intends 58:17
 gentlemen 2:4; 10:7; 12:8         guiding 56:10                    however 34:17: 59:4             interest 16:1; 30:6
 Ge rge 10:9; 58:12                guns 17:7: 40:6                  huge 51:6                       Interested 9:24; 16:20
 George's 20:15                    guy 52:21                        human 51 :5: 53:8; 55:1         interesting 52:9,20
 getting 9:11J 16; 26:8; 27:17;                                     hundred 58:16                   interfering 17:8
 42:21; 46:3,4; 48:8               H                                hurt 21:12                      interim 4:19
 G119:13                                                            husband 53:8                    International 21:10;
 gift 55:22                        habits 15:6                                                      39:16,20,21,22; 40:2,19
 Girls' 44:24,25                   hadn't 9:14                                                      Internationally 56:10
 giving 23:15; 58:21               haH 6:19; 7:9,11; 23:22;                                         Intervention 49:4
 glad 9:25; 53:9                   24:6; 25:12: 31:5: 33:18:        1'118:21                        invest 16:10,24
 goal 9:17; 30:10                  35:12                            I've 13:23; 28:25; 33:1;        Invested 6:21
 goals 28:19; 34:3                 hand 64:16                       41:18                           investment 6:25; 7:2; 9:12;
 g ing 2:17; 5:1,16; 14:9..t16:    hancl-out 11 :20                 Idea 5:5; 38:14: 61:4           19:2
 f6:13"; 18:15,23; 21:14: ",,:9;   hand-up 11 :20                   Ideas 50:11                     investments    8:23
 30:17,24: 32:2,4; 41:1; 42:11:    handed 41 :18; 59:23             identHIed 8:23                  involved 7:25; 32:8; 48:13;
 43:25; 44:8; 46:4,21,24:          hands 17:7: 46:17                identify 8:6,11                 60:5
 53:12,14; 57:1; 58:16:            happen 20:7                      Imagine 14:20                   involving 43:14
 59:3,11,12,13: 60:15: 62:13       happened 39:23                   imagined 16:2                   Iowa 4:7
 Golden 62:21                      happens 58:10                    Immediately 18:15; 62:17        Ireland 15:3
 Good 2:3: 10:212: 22:16:          hard 11:17: 12:4: 20:10:         immigrants 25:9                 Islanders 44:15
 24:15: 28:11: 29:22; 34:12:       23:23: 31:2                      Immigration 44:19               Issue 41 :22; 62:10
 39:12; 40:1: 45:18,22; 46:6;      hardest 27:21                    impact 19:1; 28:3               Issued 37:5,13
 55:3,23; 59:20;                   hat 28:1                         Implement 50:22                 issues 3:t6; 4:20; 14:22;
 61 :20,20,21,21                   hate 12:21                       Implementation 42:15            29:9; 38:20; 42:15; 44:5
 goodness 15:7                     haunt 35:23                      Implemented 9:2; 51 :16         1ST 34:2
 G vernment 2:24: 6:7: 7:19:       Haveman 51:9,10,23               Implications 44:7,22            Its 5:13; 15:14; 32:25; 33:15;
 11 :19; 16:13,15; 40:22;          Hawaii 44:11; 48:21; 49:2,8;     Implore 43:5                    52:16,18; 54:19; 55:2
 41:11,11,12,12,23: 47:3,11:       62:12                            Imploring 58:22
 57:25                             head 23:2,3: 31 :12: 52:24;      ImJJOrtant 16:21: 19:5;         J
 governm nt's 26:12                57:20                            22:2,8; 25:14,15:
 governmental 50:2                 heaHh 11:4101114;                30:19,20,21: 45:7,23; 47:10:    James 51:9
 GOVERNOR 2:1;                     19:15,15: 20:24,25: 21:16,24:    49:13; 57:15                    January 18:7
 3:15,16,18,19,19,24;              22:1,7: 48:23; 49:10; 50:17:     imposed 14:17                   Japanese 44:13
 4:1,3,4,5,5,6,9,22,23,24:         51:10,13,16                      Imposes 23:14                   Jensen 58:12
 5:1,3,3: 10:1,4,9,9,11;           heaHhy 45:18: 48:24: 49:3        Impress 7:3                     Jerry 57:20
 12:5,24: 13:7,12,16: 15:9:        heard 29:1                       Improve 5:14,14: 61:2           Jersey 43:20
 19:14: 22:25; 25:21: 29:1,1:      hearing 22:6                     Improved 9:18                   Jersy 4:4
 31:11: 37:21: 40:25: 41:17:       hearings 62:15                   inaugural 10:23                 Jim 4:14,15
 43:20,21: 44:9,9: 45:1:           heart 62:5                       Inc 49:23                       lob 11:2,21; 17:22; 27:1;
 46:19,19,21,22: 47:22; 48:4;      Held 1:38: 39:11: 40:18:         Inc. 58:14                      28:5; 30:19,20: 32:21; 33:20;
 49:6,12,19,19,24; 50:10,15:       54:13                            Incentive 29:16                 42:21; 43:3; 46:8; 48:19;
 51:3,8,25: 53:12: 54:9,24:        help 8:7; 20:3 25; 23:6;         Include 20:23,24; 27:1; 28:7;   56:2; 57:17; 58:2,6; 60:21;
 55:6,21: 56:16,25:                26:6,8: 28:8,14,19: 30:2,3;      39:16                           61:3,18
 57:2,2,5,12,22: 59:9: 60:8,9:     33:2,25: 34:2,15,25: 35:1:       Includes 19:11                  lobs 3:1; 26:18J.21,24; 27:3;
 62:1,3,3,8                        36:23; 43:4,9; 53:1; 60:20       Including 22:5; 38:6            32:12; 33:21; 30:3; 61:1
 g vern r's 5:21                   helped 24:18,20: 35:14:          income 24:19i 29:6,12;          Joe 54:7
 Govern rs 2:3..t21..t25: :8,23:
                           3       41:'3; 43:19: 50:20              30:16; 31 :20; .,9:19           John 4:4
 10:4,13: 14:8: ,,9:,,0: 34:5:
 37:6,13,15: 46:3: 47:5,15;
 48:1; 52:6; 53:10: 59:21;
                                   helpful 5:5
                                   helflng 2:15: 19:13: 41:7;
                                   51: 1
                                                                    Inconsistent 41:25
                                                                    Increase 5:13: 19:11J.12;,15;
                                                                    24:17; 31 :3; 34:10; 5,,:1l1
                                                                                                     loin 4:18; 12:6; 62:5
                                                                                                     olned 13:17
                                                                                                    July 1:4
 60:5: 61 :6: 62:14,19,20,20:      heralded 53:3                    Increased 8:19
 63:2                              hereby 64:7                      Increasing 31:6                  K
 GOVERNORS' 1:5: 2:6:              hereunto 64:15                   Indeed 14:21
 3:12: 10:15: 23:2: 47:1; 53:2     heritage 44:12,13,14: 45:22      Ind pendence 23:9                Kane 43:20
 grab 40:21; 41 :24                high 37:9; 42:21; 43:15          Independent 50:6                 keep 14:19; 17:4,9; 18:11;
 Grad 38:4: 40:2: 41 :15           higher 39:4; 43:1                Indicated 64:10                  19:3; 21:4
 grader 37:11,11                   hlghe t 27:13; 39:11: 54:20      Individual 19:2: 58:8,10         keeping 17:7
 graders 39:20                     Hillary 13:9                     Individuals 47:12;               keep 18:22

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                        Index 4
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                           MONDAY, JULY 28, 1997

 Kellogg 55:13                     I cal 16:2; 40:23; 42:2        messag 59:9,17                   51:12; 58:19,22
 Kentuc!~ 4:23; 5:6.112,12;        IocaIHles 33:2                 met 37:12                        needed 31 :7; 52:24
 6:1; 7:12; 9:24; 33:0,6; 37:17    I cally 29:25                  method logy 7:22                 needs 11 :24; 50:3
 K ntucky's 9:21                   I ng 21 :6; 22:25; 31 :24;     Mexico 37:23                     nap tiatl ns 18:2
 key 8:1                           32:f9; 38:13; 39:2; 41:22;     MGM 30:8                         nelghborh ods 32:14
 klck-off 59:12                    43:2; 45:25                    Michigan 37:16; 51:9,17;         Neither 41 :25
 kicked 59:13                      long-term 25:17; 28:14         54:14; 55:12,17,17               NELSON 3:18,20
 kicks 61:24                       Longaker 49:22,23              Michigan's 33:14                 net 5:23
 kids 38:19; 39:2;4,8,10,17;       longer 52:8                    middle 20:2; 40:7                networks 55:19
 40:1,14; 41:15; ..2:14            1001( 9:16; 13:3; 16:23;       Mike 23:3                        Nevada 1:2; 13:9; 15:11;
 kind 7:20; 14:8; 16:18;           26:16; 30:15; 43:23            MILLER 2:1; 3:16,19,24; 4:1;     30:10; 49:21,24; 53:18;
 58:18; 59:1,2                     looking 9:15                   5:4; 10:1,9,11; 12:24; 13:8;     64:3,17
 King 58:1                         loose 26:11                    19:14; 23:1; 29:2; 49:25;        New 4:4,9; 5:819,17;
 Knowles 4:6; 51:3                 lose 36:3                      50:10; 62:8                      6:2,2,13,15; 7:.. ; 8:7; 10:16;
 known 53:23                       losing 15:13                   Miller's 46:20; 47:22            11:13; 13:25; 14:15,20;
 Kralnlk 56:7,9,16                 lot 14:10' 23:17' 24:15;       million 6:25; 7:15; 8:19,23;     15:10; 17:1; 21 :24,25; 25:1;
                                   25:3,17; 26:10; 29:13; 30:4;   9:1,10; 23:24,25; 27:18; 33:2;   30:11; 32:24,25; 34:2,15;
 L                                 32:15,23; 37:1,4,7; 40:12;     34:1; 35:12; 51 :2; 58:4         43:20; 45:9; 54:15,23
                                   42:7; 58:24; 59:15,15          millions 10:25; 11:19; 12:6      news 6:12; 40:1,1
 ladi s 2:3; 10:7; 12:8            louis 59:13; 61:24             Milwaukee 59:14                  newspapers 53:3
 Lady 31:23                        low 30:16                      mind 3:10; 46:16                 next 5:20; 18:12,13; 32:1;
 Lake 15:11,15                     lower 35:19; 44:13             mine 37:3                        35:23,25; 49:21; 51 :8; 54:9;
 lakes 15:13                       lowered 35:11                  minimum 24:18; 28:24;            62:11
 Lamar 23:3                        lowering 36:11                 29:4,5,12                        NGA 3:4; 4:2J14; 11:16;
 large 15:13; 16:4; 27:20;         loweat 24:7,11; 52:16          Minnesota 45:1,2                 13:23; 47:4; ..8:7
 29:18; 33:12                      loyal 59:7                     minute 5:5; 8:21                 nickel 6:22
 largest 19:11,12,15; 24:6;        Lyric 56:8,11                  minutes 57:1                     Nine 24:3
 38:5,6,15                                                        Mirage 1:12                      nodding 31 :12
 Las 1:14,2; 2:13                  M                              Miss 50:19,24; 56:9,16           nominated 49:24
 Laser 54:6                                                       Mi88i88irpi 43:21                nominating 4:2
 last 17:14; 20:11; 24:4; 38:1;    magnitude 6:25                 Missour 4:5; 25:22               nominations 47:16
 51:25                             maUing 4:11                    mistake 19:4; 24:21; 35:22       nominees 47:17
 lasting 50:1                      ma~or 11:11; 14:10,14; 51:4    model 31 :21; 49:5; 56:15        nonprofit 55:14,18
 late 56:7; 62:15                  ma orHles 20:7; 22:21          modern 6:6; 38:20                Nordic 45:2
 later 5:22                        ma orHy 11 :9; 44:10,17,21     modernize 6:5                    North 29:23; 37:15
 launch 23:6                       ma e 2:16; 9:25; 23:7;         modest 19:25                     nostalgiC 12:19
 launched 49:3; 57:8               24:21; 32:2,10; 36:17,21;      moment 4:25                      notes 64:10
 Laurie 1:23; 64:6,23              37:12; 45:13; 47:10; 51:6,17   momentarily 4:18                 nothing 41:10
 law 18:3; 23:12; 25:1,5;          maki~ 10:16,23; 12:7;          Monday 1:0                       nourishing 30:25
 27:11,11; 31:3,17; 32:17;         24:23; ~3:23                   money 5:17; 16:10;               Nugget 62:21
 34:14; 36:15                      managed 51:16                  22:10,10,14; 27:10; 34:24;       number 3:5; 13:21
 laws 50:21                        Management 52:2; 56:19         35:16; 36:10                     numbers 8:20
 layers 8:8                        margins 24:20                  money; 9:7                       numerous 9:13
 leaders 7:3; 25:11; 28:13;        marl(et 19:1                   Monsanto 58:1
 37:14                             markets 17:1; 21:11            months 15:1
                                                                  morale 9:18
                                                                                                   o
 leadershi~ 41 :18; 45:12;         Martin 4:14
 54:13; 62:9                       marvelous 15:23                morning 2:3                      obligation 34:23
 leading 14:4; 42:19               Maryland 36:10; 37:16          mother 59:5                      obliged 34:21
 learn 5:8; 46:10; 54:2            Massachusetts 28:21; 37:16     mothers 25:16; 57:16; 58:10      obsession 37:3
 least 6:20; 23:1                  massive 6:24                   Motion 4:1                       obviously 9:11
 leave 12:21; 13:19; 41:1;         math 37:11; 39:16,21           move 19:19; 23:20; 26:21;        October 32:4
 46:11; 61 :25                     matter 32:19; 64:9             29:14; 33:3; 35:9,10; 45:20;     off 27:19; 28:1; 38:15,17;
 led 34:9; 37:6                    Mawby 55:12,13,21              46:20,24; 48:10,13               58:5,15,18,23,25; 59:13,18;
 left 57:1                         May 2:1; 3:12; 27:23;          moved 3:15,16; 24:24; 27:18      61:12,24
 legal 25:9                        57:9,24                        movement 41 :19                  offer 47:13
 legislation 18:3; 34:8            maybe 44:13; 45:15; 48:10      moving 25:6; 28:18; 30:23;       office 5:21 24; 6:18' 13:23;
 legislative 3:2; 7:3; 50:25       mean 44:19                     32:12; ~3:16; 46:7; 52:16        14:13; 16:17; 18:7; 23:5,25;
 legislature 9:9                   measure 16:4                   much-needed 20:2                 52:2; 64:16
 IegHlmate 42:6,9,16; 43:6         measures 34:15,19              music 53:25                      Officer 50:16
 1e88 18:6                         measuring 38:19                                                 offices 33:8
 Let's 56:21; 60:20                mechanisms 35:4                N                                Official 48:2; 64:16
 level 32:21; 41 :15               Medicaid 8:16; 19:16; 21:23                                     officially 3:10
 life 23:8; 30:7; 37:3; 51 :11 ;   medical 51:18                  Nadia 62:23                      officials 26:6; 57:25; 58:1
 53:10                             Medicare 19:21                 narrowly 28:15                   often 32:14; 56:1,3
 light 56:20                       medium 29:19                   Nation 37:5; 44:20,24,24,25      Ohio 13:15; 52:3,8,18
 likely 36:7                       meet 28:19; 34:3               Nation's 10:13                   Ohio's 52:15
 limited 14:17; 28:6               Meeting 2:7; 3:11,14; 4:10;    NATIONAL 1:5; 2:6; 3:11;         old 14:18,20; 15:6; 27:11
 IlmHs 23:13                       49:17                          10:15; 17:24; 26:15; 37:9;       once 31:20
 lines 34:16                       meetings 3:4; 5:8              38:2,7; 41 :4,8,16,25; 43:15;    one 2:10; 5:7; 6:20;
 list 7:11; 29:25                  Meg 54:6                       47:1,5; 49:5; 56:14              8:12,17,25; 9:2,3,15; 13:1,24;
 IHeracy 10:20                     Mef4:5                         nationally 29:18                 14:3,23; 15:12; 17:22; 18:22;
 Iilerally 33:20                   members 13:17; 43:22;          nationwide 26:1                  22:24; 25:20; 28:23;
 little 7:4; 13:4; 16:7; 25:16;    47:20,21; 52:9                 Native 44:15                     29:13,24; 31 :21; 34:20;
 44:13; 62:15                      mem rable 2:17                 natural 11 :25                   36:23; 39:1; 42:8; 43:18;
 live 14:25; 46:10                 men 25:18,23; 49:15            near 22:19                       45:8,24; 48:21; 51 :3; 55:18;
 lives 10:18; 61:2                 mental 51 :16                  nearly 14:10; 26:25              56:11,14; 58:8,16; 59:6,7,9;
 living 16:5                       mentl n 8:13; 43:18            necessary 26:21; 50:22           62:2,5
 load 30:5; 35:18,18               mentioned 35:14; 52:5;         need 2:18: 4:11; 20:20; 21:2;    one-half 58:15
 I ads 31:11; 36:11; 39:9,11       60:24; 61 :23                  27:22,22; 32:24; 39:11,12;       ones 60:23

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Me~                                                                           Index 5
   REPORTER'S        TRANSCRIPT        OF PLENARY         SESSION                                        MONDAY,     JULY 28, 1997

     pen 17:1; 40:14                 25:15,17,24; 26:3,21,22;            Principal 38:3                  quite 9:6; 22:20; 30:2; 31:16
     penlng 2:5                      27:19; 28:17; 29:3,13; 30:22;       principles 21:19; 56:17
    Opera 56:8,11,11                 32:18,19; 33:3,12,19;               prl rltles 3:3; 22:25; 43:15    R
     peratlng 8:15                   34:21,25; 35:9; 36:2,4,6,13;        prioritized 7:11
    0f~rtunItIeS 11:3,22; 28:9;      42:21; 44:11,12; 45:7,16;           prl rlty 26:15; 54:20           race 39:18; 43:24,24;
    6 :18                            51:6,12; 53:2,25; 54:2; 55:23;      private 27:7...t17,22,24;       44:11,17,21; 45:4
     pp rtun!tY 2:12; 5:4; 14:6;     58:3,7; 60:3; 61:1,2,12             28:5,10,13; so.t: 47:6,10;      racially 44:8
    19:7,10,24; 20:5; 43:11; 45:9;   percent 7:2; 9:12; 18:6;            48:2,10,14,16,19; 50:2,8;       rainy-day 52:16
    57:16; 58:6                      24:4,17; 26:1; 30:11; 32:17;        55:11; 57:10,15; 60:25          raise 22:9
     pposed 3:24                     33:18; 34:10; 38:10;                privileged 2:21                 raised 29:11,12
     ptimlstic 11:2                  44:14,15; 58:18                     probably 4:14; 33:10; 58:8;     raising 30:18
     rd r 3:11; 60:25                percentage 24:7,11,24; 39:4         61:6,8                          ranks 22:11
     rganlzatl n 49:25; 53:19        perfectly 15:12                     problem 30:3; 51:19; 58:24      rapid 11:25
    organlzati ns 52:11              perhaps 41 :20                      problems 14:16; 22:46;          rapidly 11:5
     rganlzed 40:8,9                 period 8:24; 27:7; 36:8             30:4; 39:7; 40:5,12; 59:3       rate 27:14
    os 14:20                         person 33:16; 60:13                 procedure 3:13                  rating 52:19
    Oscar 54:10                      personal 11:21                      proceedings 64:8,14             re-emphaslze 41:2
    at 14:20                         personally 12:1; 53:6               Process 7:23; 8:4               reach 40:4
    other's 15:2                     persuade 34:1                       processes 6:6; 8:1,22           reached 20:13; 25:10
     thers 9:7; 62:4                 phasing 5:24                        produce 11:7                    reaction 52:25
    ought 18:10; 26:16; 29:5,15;     Phlllppfne 44:14                    producing 7:7                   reading 37:11
    30:15; 46:20                     phony 46:4                          ProductIOn 53:17                reaffirm 29:3
     utslde 32:14; 49:17             photograph 62:13                    productive 10:18; 34:25;        real 13:5
     utstandlng 47:17; 55:9          picture 48:9                        36:9; 59:7                      reality 10:24; 11:13,18
     vera112O:1                      plecemealed 6:10                    products 17:1                   realIZe 6:19
     verburd ned 42:13               pitch 53:15                         profound 22:5                   Realizing 7:6
    owe 40:16                        place 27:12..t~1; 4:19; 35:3;
                                                      3                  program 6:2,16,24; 7:9,12;      really 7:13; 13:24; 35:24;
     wn 23:6; 60:18;                 54:2; 61:1; 04:9                    8:12;18; 9:10,17,24;            45:13; 52:4; 53:9; 59:17
    61:14,15,16                      placed 49:7                         21:23,24; 22:1,14; 23:16;       reasonable 17:6
                                     placement 27:3                      27:10; 38:8; 47:3; 54:21;       reasonably 21:5
    P                                places 28:3                         62:12                           reasons 24j.:15; 29:13
                                     planning 49:10                      programs 7:5' 8:1416;           receive 31:7
     PacHic 44:15                    played 14:10                        11:20; 18:19; 27:1; 32:13;      received 9:7; 50:24
     package 6:15; 21:16; 22:3       pleasant 2:16                       53:22                           receiving 31:4; 52:18
     page 15:17                      please 2:2; 4:13; 33:25;            pr~ress 37:4; 41:5              reception 62:21
     parnless 5:18                   48:4; 60:2; 63:1                    pro ect 7:20; 33:14; 49:3       recipient 52:5
     panel 47:24                     pleased 20:13                       pro ects 7:5,10; 9:4,5          reCipients 28:15; 30:9,12;
     parade 10:23                    pleasure 2:4; 53:5,16; 55:4;        promise 5:22                    61 :2"1;62:12
     parental 23:13                  57:6                                promising 11:22                 recognition 46:24; 47:5;
     parents 34:16                   PLENARY1 :9; 2:5                    promote 23:8                    56:4,6
     Part 4:8; 33:22; 38:11;         pockets 26:3                        promoting 55:2                  recognize 49:15,18; 55:8
     45:24; 53:10; 61:10             Poetry 53:24                        proposal 4:13; 33:1             recognized 52:13; 56:10,22
     participate 37:10,15; 38:8;     point 8:2; 15:19; 50:7              propose 41 :14                  recognizing 22:3; 47:12
     41:4; 42:11; 45:17; 61:15       policies 50:22                      proposed 7:4                    recommend 52:4
     participated 41:7               policy 4:9; 21:6,8; 52:21           prospect 7:2                    reconcile 42:12
     particular 3:7; 47:8; 58:8      politician's 5:21                   prosperity 14:5; 19:6; 26:2     reconciliations 43:25
     particularly 31:24; 36:24       polls 11:1                          Protective 49:1                 reconnecting 54:25
     parties 20:8; 22:22             pollution 15:15                     protects 19:20                  record 13:15; 27:14; 64:14
     partnership 13:22; 16:18;       poor 39:4                           proud 12:6; 24:9,11; 50:10;     recurring 6:20; 9:1
     29:18,21,23; 46:23; 54:21;      population 24:8                     52:4,7,11                       redesign 9:17
     57:3,8; 61:5,5,14               populations 33:12                   proved 17:16; 40:15             redesigning 7:25
     Partnerships 48:18              position 29:2                       proven 50:12                    reduce 5:13,16; 16:9,14
     party 26:8                      positions 30:12; 54:14              provide 20:2; 28:10; 31:18;     reducing 52:15
     pass 5:19; 19:10,18; 50:21;     possible 35:5                       60:15; 61:8,18                  reenglneerlng 7:18,23; 8:22
     60:7                            Posthumous 56:6                     provided 55:1                   reflects 19:8
     passed 7:13; 19:14; 34:8        power 40:21; 41:24                  provider 51:18                  reform 11:17; 18:17; 22:24;
     passionate 41 :20               practical 42:15                     provides 33:14; 54:2            23:4,7,12,18; 24:1; 25:1,5;
     past 12:2; 16:3; 20:10;         predecessor 23:2                    public 8:15' 15:25; 22:14;      31:3; 34:20; 35:9,21; 36:16;
     21:22; 30:9; 36:18; 50:5;       predecessors 5:18; 42:3             24:12; 34:24; 37:3; 47:13;      38:21; 43:13,15; 50:16,21,23;
     57:9                            predict 27:16                       50:8; 51:4,20; 53:7; 61:16,17   61:7
     patterns 44:18,19               pregnancy 10:20                     Public-PrIVate 48:17            reform; 17:24
     Patt n 4:22; 5:3                prepare 13:24                       publications 9:23               reformed 27:11
     Patt n's 4:24                   prepared 40:18                      published 34:18                 regard 18:1; 26:7
     pawn 2:18                       present 28:4; 32:6; 48:5;           punish 17:11                    regime 42:8
     pay- 5:22; 20:25;               53:6,16; 54:10; 55:4                punished 21:10                  region 39:18
     34:21,22,23; 41 :3,7            presentation 48:12                  purchase 6:13                   regional 53:19; 54:20
     paychecks 11:4                  presenting 53:20; 56:5              pursuing 11:23                  regretting 35:25
     peace 14:5; 15:1                preserve 15:21; 21:1; 45:12         put 22:13; 25:23,24; 32:25;     regular 7:24
     peak 35:18                      preserved 12:3                      33:15; 34:1,19; 35:2; 46:9;     regulations 16:14
     pediatric 49:9                  preserving 15:22; 53:19             47:23,24; 53:1; 57:16; 58:3     relations 43:24
     pegged 27:12; 35:17             presided 51:14                                                      relatively 6:11
     PennsYlvania 28:21;             President 2:22' 4:18; 8:12;         Q                               relief 20:2
     54:11,15,18                     10:5,8,11,24; 12:5,8,11,17;                                         reliefs 11:8
     ~ple     7:14; 8:5; 11:19;      24:14; 46:16; 48:9; 52:10;          quality 31:25                   religion 45:4
A!4:23,25;      15:4,5,16;           58:13; 60:24                        question 41:24                  reluctance 38:23
w::6:16,25;     17:8,11; 18:9;       prestigious 49:13                   questi n 41 :11; 58:23          r main 10:5
     19:13,19,25; 20:7,14,22;        preventative 48:23                  quick 6:17                      remaining 9:9; 27:20
     21:11; 22:9,12; 23:19,24;       preventl n 49:9                     quickly 12:1; 35:4; 36:9;       remarkabl 13:14; 19:5;
     24:1,12,16,20,24;               Primarily 3:6                       51:21                           27:4

   LAURIE WEBB & ASSOCIATES                 (702) 386-9322      Depo-MtI'1ltl                                                 Index 6
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                          MONDAY, JULY 28, 1997

 remarks 4:24; 8:13; 46:22        safe 30:25                     simply 9:14; 43:2                stock 19:1
 remember 25:15                   sample 2:12; 39:18; 41:9       sl~18 25:16,18,23                stop 14:23,24
 Remick 54:11,13,19,24; 55:5      Sandy 13:8; 47:23,24;          sHlmg 10:5; 15:16                stories 54:1
 remind 62:18,19                  48:8,f1; 53:14                 six 5:24; 8:24,25; 32:17;        strategies 33:3
 ren wned 2:10                    Sarah 49:22; 50:11             37:14; 38:6                      strategy 51:17
 Report 37:5                      save 8:18                      size 16:14                       Street 2:14; 62:24
 Rep rted 1:23                    saves 51:1                     small 6:10; 20:21; 29:19         strength 56:15
 R p rter 64:7                    savings 6:20; 9:1; 18:18,20;   smaller 16:16                    strengthens 19:9
 REPORTER'S 64:1                  35:7,21                        Social 50:17; 51:1               strengths 32:6
 represent 21:12; 47:13           savvy 51:18                    society 25:18; 30:21; 40:10      Stress 49:2
 representative 39:18; 41:9       saw 12:24; 15:10,15; 34:17     software 6:14                    strikes 11:25
 representatives 32:9             saying 3:21; 18:9; 40:18       solid 53:4                       strings 26:12
 represented 44:3                 says 49:6; 51:3; 54:24         solve 30:2                       striving 21:18
 Republican 15:24; 25:11          schemes 22:13                  solver 51:20                     strong 7:6
 Republicans 37:17                Scholarship 20:15              somebody 52:24; 60:18            strongest 17:2
 request 3:12; 4:13; 62:17        school 10:19; 38:2,5;          somehow 40:21; 45:5              strongly 14:14; 29:10
 requests 12:2                    42:2,21                        someone 56:17                    structural 21:8
 require 4:8; 26:22               schools 37:19; 38:4,6,16;      something 6:3,4,24; 12:22;       student 39:5
 required 31:16                   40:7,24; 54:22                 17:12; 24:10; 33:11; 38:21;      students 41:10
 requirements 23:13; 34:7         ScIence 39:16,22               57:8; 59:20                      stUdy 34:18
 research 53:21                   scored 39:20; 40:2             sometimes 42:8                   stunning 32:22; 33:17
 reservati n 40:20                88al64:16                      somewhere 4:15                   submissions 47:25
 resoluti n 4:10,12; 29:8         seamless 31:18                 sort 16:19                       submit 4:9,13; 23:21
 res urce 11:12; 50:7             search 27:2                    soul 13:2                        submitted 47:16
 resources 33:7                   second 3:17,18; 22:23; 23:8;   sound 56:17                      subsidiaries 31:19
 respect 45:6; 60:11              30:6,14; 37:2; 40:20; 62:21    South 1:14                       subsidize 27:7
 respective 52:10                 Secondly 18:22                 special 2:13; 55:22; 56:6;       substantial 7:1
 responded 12:1                   Secretary 38:1; 40:25          62:20                            suburban 33:21
 resp nds 51:21                   sector 27:22,24; 28:5,10;      specific 3:7                     suburbs 32:24
 resp nse 3:25; 11:25; 53:2,4     50:2; 55:14; 57:10,15; 60:25   speeches 58:21                   subway 32:20
 responsibilities 23:14; 43:14    secure 30:25                   spend 34:25; 42:3,14             succeed 30:17; 32:2
 responslbllltv 11:21; 14:6;      secured 28:12                  spending 7:5; 16:10; 31:6;       succeeded 9:11
 18:24; 21:7; ~3:10,13;           SecurHy 51:1                   33:22; 52:15                     success 27:16
 26:13,14; 40:23                  seeing 30:6                    spent 14:22; 22:14               successes 26:17
 responsible 14:1; 23:16;         seemed 14:12                   spirit 55:1                      successful 21:5; 28:5; 57:18
 52:18,25                         seems 14:12; 30:14             sponsors 54:23                   Sue 54:6
 rest 45:5                        seen 15:9                      spring 37:5                      summarize 9:23
 restaurants 2:11                 Segal 57:18                    Sprint 58:1                      supervision 64:12
 restorations 26:5                selection 2:11; 47:19          ss 64:0                          support 19:16; 20:3; 24:17;
 restored 25:9                    Seminar 59:12                  St 59:13; 61:24                  26:19; 27:23,25;
 restrlcti ns 17:7                senior 52:21                   stable 40:10                     34:5,6,10,13; 35:3; 48:18;
 restructure 8:3                  sensible 55:22                 staff 4:14,16; 9:24; 60:3        54:10; 61:1
 result 9:21; 49:6                serious 18:23                  stage 18:2                       supportive 17:17; 22:20
 results 16:22; 39:15             servant 51:20; 53:7            stamps 25:13                     Supreme 52:22
 retake 62:13                     serve 4:7; 8:5; 50:7           stand 60:2                       surplus 7:8,16
 retired 54:11                    served 36:25                   standard 41 :16,16               surprised 22:18
 return 2:18; 7:2; 9:12           serves 51:6                    standards 37:9,12; 38:8;         suspend 4:12
 returns 7:1                      Service 2:23; 8:2; 46:25;      40:19; 41:12,19,25               sustained 21:8; 22:21
 revenue 5:14; 6:1; 7:7,10;       47:2,6,14; 48:7                standing 3:5                     symbolized 58:9
 9:2                              services 5:14; 7:24; 17:1;     start 18:14; 27:23; 49:3;        system 8:7; 32:7; 33:9;
 review 6:17; 47:22               50:8,18; 51:18                 57:4                             38:16; 43:1; 52:23
 ribbon 6:15                      serving 9:21; 52:7             started 9:8; 33:6                systems 6:5,10,18; 31:18
 rid 46:3,4                       SESSION 1:9; 2:5,25; 52:6;     state 2:5,23; 6:7; 7:19,21;
 ride 32:20; 33:20                62:14; 63:2                    21:11; 24:25; 26:6,25; 27:6,9;   T
 RIDGE 49:12,20; 54:24            set 13:1; 30:10,11; 57:10;     28:20; 29:23; 30:10;
 right 4:14,16; 12:23,25; 17:9;   64:15                          33:10,19; 34:16; 35:15;          Tahoe 15:11,15
 22:17; 29:10; 46:7               seven 38:6; 43:22              37:8,9; 43:14,24; 44:10,16;      taken 8:20; 24:15; 48:9
 rig r us 24:22                   several 12:1                   45:17; 47:2,9,11; 48:2; 49:24;   taking 13:4; 52:14
 Rney 38:1; 40:25                 shake 46:17                    50:22; 51:1,17; 52:2,8;          talk 5:4,11; 8:21; 13:20;
 Risk 37:5                        shape 46:6                     54:14,22; 56:1; 58:11;           17:21; 22:23; 57:2,7
 role 14:10; 24:10; 41:2          share 14:9                     61 :11,15,16,20; 64:3,17         task 9:18; 10:17; 23:4
 roles 27:13                      shift 51:14                    State's 6:5,17; 47:6; 50:21      Taste 2:13
 roiling 19:3                     shooting 15:2                  state-wide 35:3                  tax 5:25; 11:8; 19:25;
 rolls 17:20; 24:3,5; 27:19,20;   Short 46:18                    States 2:22; 10:8; 12:9;         20:15,19,25; 22:10; 24:19;
 35:11                            shortcomings 26:17             16:15; 21:22,25; 23:6; 24:3;     28:14,16; 29:6,12
 Romer 41:17                      shorter 36:8                   27:5,15; 28:8,22; 29:24;         taxes 5:20
 r om 13:1,2                      Shorthand 64:6,10              31:4,5,10,16,17;                 taxpayers 8:6; 9:22
 r und 56:21                      shortly 10:6                   33:2,5,11,22; 34:15,19;          teachers 20:20
 Rowland 4:4                      shouldn't 17:8                 35:2,8,19,23; 37:14; 40:8;       team 13:8
 RPR-RMR 1:23; 64:23              show 11:1                      41 :5; 42:2; 47:13; 49:5;        technicians 20:21
 ruled 52:22                      Sia 48:22                      61:9,9,14                        technology 5:15; 6:7,21
 rules 3:13; 4:8,12               Sla's 49:1,7                   states' 40:22                    teenage 10:19
 run 46:1                         Siegel 60:3                    statistic 32:22; 33:18           tell 15:19,24,25
 running 16:1; 62:15              sign 59:22; 60:5,19            stay 2:16                        T n 10:14; 18:20; 21:3; 23:1;
 rural 33:12,13                   signed 23:11,18; 24:1;         Stenotype 64:8                   50:5
 Russell 55:12                    62:1,2                         step 9:16                        t rm 5:21; 21:6; 37:2
                                   Ignlflcant 23:14; 24:23       st pplng 37:19                   terms 38:16; 42:13
 S                                 IgnDy 3:21                    at p 34:20                       t rrlbly 12:19
                                  similar 29:23                  Steve 12:24                      t rrific 43:10

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merp                                                                      Index 7
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                            MONDAY, JULY 28, 1997

 Terry 4:6                        T mmy 57:3; 60:23; 61:23         UPS 58:2                         weekend 20:10
 test 16:21; 39:20;               tom rr w 4:17                    urge 35:2; 36:20                 weeks 39:15
 41:3,8,9,13                      t night 2:11                     use 35:16; 61:17                 welcome 2:4; 12:18
 testing 37:10; 42:8              Tony 4:5                         used 7:22; 22:12; 28:17;         welcomed 44:23
 Tests 39:16; 43:8                to k 6:18; 13:23; 14:13;         35:9                             W Id 37:21
 thank 2:15; 5:3; 10:1;           16:16; 18:7; 23:5,25; 41 :19;    uses 33:7                        welfare 8:17; 10:19;
  12:11,12,12,12,13,13,13,14,1    64:7                             using 5:14; 27:6; 36:12          11:17,19; 17:16,19,24; 19:19;
  13:6,13; 15:7; 26:8; 29:19;     top 22:25                                                         22:24; 23:4,7,7,12,18,20,25;
 30:13; 37:15,22; 46:14;          topical 3:1                      V                                24:1,3,5,8,16,25,25;
 47:15,18,21; 49:19; 57:5;        touch 45:16; 51:5                                                 25:5,16,24; 26:22,25;
 60:9; 62:7,8; 63:2               Touche 7:18                      valuable 47:6                    27:6,10,13; 28:3,14,18;
 thanks 38:3                      tough 17:5,17; 23:12; 34:15;     values 19:8                      29:14,17: 30:6,9,12;
 that's 5:5; 6:4; 16:19; 22:16;   35:3"                            van-pool 33:20                   31 :3,11,20; 32:12,16,18;
 24:18,20; 29:7; 34:12; 35:12;    tougher 34:6                     vanguard 34:5                    33:4,13,19,23; 34:14,20;
 39:3,25; 41:14; 58:18; 59:9      tp 14:20                         varied 53:20                     35:7,9,10,11,18,21; 36:16;
 th mselves 61:1                  track 22:17; 34:15               various 47:25; 48:1              43:13,15; 46:9,23; 50:16,21;
 theorY 39:10                     traditional 27:1                 vast 14:3                        57:16; 58:5,10,16,18,23;
 there's 12:21; 24:16; 26:10;     traditions 53:20                 Vegas 1:14,2; 2:13               59:1,5,18; 60:11,13,20;
 28:25; 32:11; 59:22              training 5:1~.i 6:16,22; 8:17;   verge 20:9                       61 :7,13,19,21
 thereafter 64:10                 11:21; 27:2,,"; 32:13; 36:13;    verse 53:25                      WeHare-to-Work 57:3,7,19;
 th ref re 32:25                  59:1,6                           version 20:14                    59:12; 61:5
 they'd 4:20                      transcribed 64:11                vested 30:6                      well-Informed 41 :21
 they'r 15:3; 31:1; 36:11;        transcript 64:13                 veteran 50:19                    well-known 20:18
 41:11; 59:3                      transformed 56:13                Vice-chairman 3:17               went 38:1
 they've 27:14; 40:15             transportation 3:2;              view 29:3                        West 37:17; 53:21
 thing 13:5,24; 15:23; 16:19;     8:14,16,18; 26:19; 32:11;        violent 17:14                    Western 53:17; 54:1,6
 22:23; 28:11; 29:22;             33:1,3,8,9,15,24; 36:12          Virginia 37:17                   whatever 45:22
 30:14,21; 32:10; 36:18;          treasured 11 :12                 virtually 26:2                   whenever 12:18
 38:12; 43:19; 45:7,18,23;        tried 13:21; 14:11; 16:6;        vision 22:6                      WHEREOF 64:15
 59:20                            29:14                            vital 3:5                        whether 23:18,19,20; 29:8;
 things 5:7,9,9,17; 13:10,21;     troubled 56:14                   VOINOVleH 3:15; 5:1; 10:9;       31 :20; 40:14; 41 :24; 42:24
 14:23; 15:10,18; 17:6,22;        true 64:13                       13:12; 29:1; 46:19; 49:19;       White 32:5; 44:24;
 18:22; 19:3; 20:17; 22:15;       truly 47:12; 56:11               50:15; 51 :8,25; 53:12; 54:9;    57:9,10,24
 25:5,8,14,20; 35:14,21; 40:7;    Trust 19:21                      55:6; 56:25; 57:6                Whitman 4:3
 42:12; 43:12; 45:12,25           trustee 55:12                    voluntarily 29:14                whole 44:20; 61:4
 think 7:13.1.14;8:12; 9:22;      truth 39:3                       vote 4:11; 19:17                 Why 11:2; 18:15; 40:3
 16:17; 19:;,; 21 :14,21;         try 5:9; 42:11; 43:6; 53:14;     voters 5:19                      widespread 10:17
 22:8,17: 25:13: 26:16; 27:4;     58:2                             vulnerable 40:6                  wife 47:22
 28:11; 29:15,22; 30:4,18;        trying 14:22; 20:11; 21:17;                                       will 2:12; 3:6; 4:3,7,11,18;
 31 :10,24; 32:1,25; 35:20,24;    37:2; 45:16; 58:4;                                                5:24,25; 8:13,18; 9:22,25;
 36:13; 40:20; 41:20; 42:4,16;    60:10,12,17,22                   W                                10:5; 13:19; 14:4;
 43:10; 44:2,6,22; 46:2,20;       Tuesday 4:17                                                      18:6,11,11,14; 19:19,22;
 48:8,9,16; 56:1,25; 58:8,9;                                       W.K 55:12
                                  turning 50:11                    wage 24:18; 28:24;               20:1,3,3,14,17;
 59:19,20                         turns 59:6                                                        21 :3,10,12,21,25;
                                                                   29:4,5,12
 thinking 14:15,18                two 6:21; 15:1,10; 17:23;                                         22:10,18,20,21; 25:9,12;
 third 17:24; 32:10; 39:15;       20:16; 21:19; 27:23;             waivers 23:6
                                                                   walk 60:19                       26:6; 27:16; 28:2,7,10,19;
 42:6; 44:11,12; 60:22; 62:2      43:19,22; 55:6                                                    30:3,4,18; 32:8,8,20;
 Th mp80n 4:24; 10:4;                                              walked 12:25,25; 18:24
                                  typewriting 64:11                                                 33:10,13; 34:2,24; 35:8;
 29:20; 31 :12; 46:22; 57:2,5;                                     Wallace 54:6
                                                                   Walsh 47:18                      36:6,7,16,16; 38:9; 42:19;
 62:3                             U                                                                 43:2,4,9; 44:17,21; 45:17,18;
 thor ugh 52:23                                                    want 2:15; 5:11; 10:5; 13:7;
                                                                   29:2,19; 38:19; 43:5; 45:25;     46:11,12; 48:6; 53:13; 57:4;
 thought 7:15' 13:3; 16:24;       ultimate 9:17                    47:15; 60:19; 62:4               62:22
 32:15; 39:2; 44:7                unable 34:23                                                      willing 27:17; 32:20; 37:23;
 thousand 30:9; 39:17                                              wanted 43:12
                                  unanimous 34:13                  ward 48:3                        38:18
 th usands 33:20                  unaware 32:17                                                     wind 35:25
 three 3:9; 17:21; 23:24;                                          warm 12:18
                                  unbelievable 45:9                warmth 51:5                      winner 48:3,15; 49:21,22
 33:18; 37:17,18; 54:14           unbudgeted 7:10,15                                                winners 2:23; 46:25; 48:14;
 three-fourths 4:11                                                Washinaton 16:7                  55:7; 56:22
                                  undermine 29:16                  wasn't f3:2; 52:23
 thr ugh ut 37:3; 54:22           understand 7:19; 42:14                                            Winter 43:21
 tickets 2:18                                                      waste 8:6
                                  undertaken 7:20                  ways 5:8; 9:15; 14:14,15:        Wisconsin 24:5; 31 :15;
 tim 8:924; 14:21; 16:5;          unem~loyed 25:17; 26:4;          34:25; 36:17; 45:4               33:17; 59:4,14
 22:25; 23:13,17; 27:8,13;        36:5,6,7                                                          wish 37:21; 38:17
 31 :24; 32:23; 35:23,25; 36:8;                                    we'd 7:15; 54:9; 57:4
                                  unemployment 26:1                we'll 31:21; 45:15,16;           within 15:1; 44:16,20; 60:25
 38:13; 39:2,19; 41:22;           unfinished 44:3                                                   without 15:21; 17:8; 26:7;
 42:13,14; 43:8; 46:24;                                            48:10,13; 53:14; 63:1
                                  Unfortunately 55:6               We're 2:21; 9:21; 16:5;          48:17,18
 47:23,24; 50:20; 56:12;          unHorm 26:2; 34:6; 42:21                                          WITNESS 64:15
 62:18; 64:9                                                       18:1,23; 20:9; 21 :14,16;
                                  unify 8:13                       22:9,17: 26:17: 32:2,4; 38:18;   women 49:15
 times 2:18                       Union 37:8                       40:17,18; 42:10; 43:23,25;       won't 62:18
 tlrel ss 55:14                   unique 5:18; 54:2                                                 word 34:4
                                                                   44:7: 46:6,24: 47:12; 53:9,12;
 t bacco 20:24; 22:10             United 2:22; 10:8; 12:9;         57:1: 59:11,14;                  work 6:23; 10:16,23; 11:22;
 today 2:20; 13:20; 17:21;        57:21; 58:2                      60:10,12,17,22; 61:12;           12:4,7; 14:1,9; 17:17; 19:20;
 27:9; 34:17; 44:9; 46:13;        unless 27:24; 30:23; 42:20;                                       20:11; 21 :17; 23:9,12,19,20;
 47:12; 49:16; 52:13; 55:7;                                        62:13,15
                                  44:17                                                             24:16,19,25; 25:2,23,24;
 56:23; 59:23                                                      we've 9:11,18,20; '6:6.1.'7;     26:22,22,23,25; 27:2;
                                  unnecessary 8:8                  17:2,13; 20:10: 27:18: ;,1 :2;
 Todd 4:3                         unn ticed 6:11                   35:13; 42:25; 46:7               28:9,18; 29:8,14,18;
 t 9!tth r 6:10; 8:11; 14:25;     unparalleled 56:20                                                30:17,23; 31:1; 32:3,12;
 20:8; 34:9; 46:10,11; 53:1;                                       w aknesses 32:6
                                  unprecedented 51:14              W bb 1:23; 64:6,23
                                                                                                    33:4,16; 35:10; 36:3,4,9,16;
 55:23                            unsubsldized 27:3                                                 39:7; 42:10,16; 43:5,6; 45:13;
 t Id 16:8                                                         Wednesday 61 :25
                                  upon 58:22                       week 38:1                        46:10,23; 60:14,15


LAURIE WEBB & ASSOCIATES (702) 386-9322 Dt!po-Metp                                                                        Ind x 8
REPORTER'S TRANSCRIPT OF PLENARY SESSION             MONDAY, JULY 28, 1997

worked 20:10; 23:23;
31:2,23
workers 7:23; 28:24; 31:19;
32:24; 33:21
w rklng 8:11; 11:18; 13:24;
20:20; 41:17; 61:13
workplace 29:4; 58:3
works 8:2; 61:11
w rid 2:9; 15:13; 37:19;
42:20; 43:1; 45:5,12; 56:15
world's 14:4
w rid-class 42:22
w uldn't 6:23; 39:1
writ 18:3
writing 4:13
wrltt n 38:15,17
wr ng 18:12
Wynn 12:24
wyoming 24:5
 Y
 year 6:18; 15:14; 17:14;
 18:5,12,13; 23:11; 24:2;
 36:15; 45:15; 47:16,24; 56:5;
 57:9; 58:17; 59:11
 year-I ng 43:23
 years 5:24; 8:24,25; 10:14;
 12:3; 14:10; 17:13,15; 18:21;
 19:14; 20:16; 21:3,3; 23:1,22;
 24:4; 30:10; 35:12; 38:14;
 41:18; 42:20; 44:16,20; 50:5;
 52:16,19; 54:17; 55:15; 60:14
 yielded 9:4
 yielding 9:5
 York 54:15
 y u're 9:24; 36:19; 42:12
 y u've 13:10; 36:21; 53:9
 young 13:14; 15:4; 30:22
 y urself 42:24
 y uth 50:9




LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                 Index 9
,
•
                        In The
    NATIONAL GOVERNORS' ASSOCIATION

                     *********
                PLENARY SESSION

                     *********

•                Held at The Mirage
           3400 Las Vegas Boulevard South
              Las Vegas, Nevada 89109




           REPORTER'S TRANSCRIPT
                       OF
                 PROCEEDINGS
              Tuesday, July 29, 1997




                              TRAVELING
                    ~      .. TRANSCRIPTTM
             Laurie Webb & Associates
                   (702) 386-9322

•
REPORTER'S        TRANSCRIPT OF PLENARY SESSION                                          NATIONAL GOVERNORS' ASSOCIATION

TUESDAY, JULY 29, 1997

                                                                1                                                                  3

 1                                                                   1   voinovich will commence as his primary focus
 2                                                                   2   beginning tomorrow as our new chairman.
 3                                                                   3                  We have made progress, but none of us
 4                                                                   4   should be satisfied until every child is guaranteed
 5                                                                   5   a chance to reach his or her fullest potential.           To
 6               NATIONAL GOVERNORS' ASSOCIATION                     6   chron1cle of few of the past year's activities, the
 7                                                                   7   NGA Center for Best Practices has worked closely
 8                          *********                                8   with I   Am   Your Child and their national publ1c
 9                                                                   9   engagement campaign.      You probably saw the TV show
10                        PLENARY SESSION                           10   and here is their new video, The First Years Last
11                                                                  11   Forever, I think available for a dollar and a half,
12                          *********                               12   right Rob, or a dollar and a quarter?      A dollar 75.
13                                                                  13     I was trying to get a quarter off the deal.
14                                                                  14                  You'll remember that Rob Reiner spoke to
                    Held at The Mirage
15            3400 Las Vegas Boulevard South                        15   us at the winter meeting about this effort to
                 Las Vegas, Nevada 89109
16                                                                  16   mobilize communities, parents, early childhood
                 Tuesday, July 29, 1997
17                                                                  17   practitioners     and policy makers to act on behalf of
                        *********
18                                                                  18   young children.      And we're going to hear more from
19                                                                  19   Rob about the campaign's next efforts later 1n this
20                                                                  20   session.
21                                                                  21                  The NGA Center also conducted a meeting
22                                                                  22   with state and national experts to take stock of
23                                                                  23   what we have learned about implementing
24 Reported by: Laurl.e H. Webb, CCR No. 50                         24   comprehensive programs for young children and their
25              RPR-RMR                                             25   families.      You can read about the lessons learned



                                                                2                                                                  4

 1                 GOVERNOR MILLER:     Good morning.   If we       1    from that meeting on the NGA web page.      The center
2    could have all the governors take their respective             2 has created a special page on its web site devoted
3 places so we can begin this morning's plenary                     3    to early childhood issues, and a resource guide for
4    session.                                                       4    governors has also been created that can serve as a
5                  During my year as chairman of the                5    quick reference for ideas and information that you
6    National Governors' Association,       I have focused on       6 can use in designing and implementing your
7    the first three years.     Some of us as governors             7    program.      And this will be distributed to the
8 perhaps are accused on occasion of still being in                 8 governors only session that will follow today.
9    the first three years of our life the way we act,               9            There'S some 66 programs highlighted 1n
10 but in reality I'm talking about the literal first               10 here, and I find it to be very interesting to be
11   three years of the children in this country.        The        11   able to compare and contrast.      I th1nk this
12   most critical period in a ch1ld's development when             12   association, privately, is best known for 1tS
13   much of the basis for later learning and growth is             13   plag1arism, and this is a great way to help.         We
14   established.     It's really impressive when you               14   can steal ideas from each other following past
15   detail all that has been done in this area in this             15   tradition.
16   past year, but certainly I and even our association            16                  As you remember, we had a successful
17   did not do it all.                                             17   plenary on children'S issues when we met in
18                 Governors, in many ways, have                    18   washington in January, and I know that this session
19   contributed to sharing ideas, raising issues and               19   will be equally stimulating.      To start the session
20   promoting investment in children in their earliest             20   off, we are going to hear from a panel of experts
21   years.     And I appreciate the commitment of                  21   about effective strategies for achieving positive
22 governors to children and to their families.                     22   results for young children, and our panel1sts are
23 However, our work in this area is far from being                 23   Judith Jones, Lynn Karoly and Doug Price.         I'm
24 finished. Fortunately for us, collectively and as                24   going to introduce all three and then let them
25 an association, this is a topic that Governor                    25   speak in turn.      Judith Jones is a clinical



                                           LAURIE WEBB AND ASSOCIATES                                                Page 1 to Page 4
REPORTER'S        TRANSCRIPT OF PLENARY SESSION                                     NATIONAL GOVERNORS' ASSOCIATION

TUESDAY, JULY 29, 1997

                                                           9                                                                  11

 1   governors have really stepped up to the plate.              1               As states struggle to increase the
2    Some states are using this private support as              2    supply of child care in an era of welfare reform,
3    development grants like the Carnegie Corporation in        3    providing health care as an incentive to increase
4    its ten-state and six-city starting points network         4    the number of licensed providers is to my mind an
5    to create a comprehensive agenda for children.             5    essential first step in improving the quality of
6                  There are also now new and powerful          6    care for the millions of infants and toddlers who
7    billion dollar private foundations on the scene            7    are in family child care homes, and it's an
8    with more on the drawing board with most as a              8    innovation that I believe other states across the
9    result of the spin-off from Blue Cross/Blue                9    country should seriously explore.
10   Shield.     Governors should be turning to these           10                 Other states are using financing
11   foundations for support to further develop their           11   approaches to sustain and expand their programs for
12 early childhood programs.       The corporate community,     12 young children when faced with severe budget
13 as you know, is a growing force in supporting                13   cutbacks.     In Hawaii this year, led by Cal Sia,
14   efforts to improve outcomes for young children, as         14   who received the Private Citizen Award yesterday,
15 well, since they know that an educated and healthy           15   the state legislature created a new early
16   work force is the bottom line for future                   16   intervention trust fund to attract both public and
17   productivity in a global economy.                          17   private sector dollars to help support the1r highly
18                 For example, Kaiser Permanente and           18   regarded Healthy Start Program of home visiting and
19   Johnson and Johnson are working with the governor          19   family support.     Colorado 1S using tax credits to
20   in New Jersey to build a health insurance system           20   leverage voluntary contr1butions in their
21 that will cover all children by using private                21 enterprise zones for early care and education.            And
22   funding to match public dollars.     In North              22   from my perspective, this is an area that really
23   Carolina, the Smart Start Program is supported by          23 needs much more thought and development.
24 over 10 million dollars from the private sector.             24                 For example, the idea of tax credits for
25 And in Florida, a child care business partnership            25   children's services could build on the experience



                                                           10                                                                 12
 1   fund has been established at the urging of the              1   of a low-income housing tax credit which has been
2    governor.     In Pittsburgh, the private sector led by     2    very effective in getting banks and corporations to
3    the Hinds and Krinz Endowment has financed a               3    invest in housing for low income families.       Many
4    five-year $60 million early childhood initiative to        4    states have growing tax revenues in this growing
5    insure that every child in Allegheny County                5    economy.    And coupled with generated dollars, they
6    receives a quality early childhood education.              6    are using these expanded resources to build the
7                  NOW, what are some of the creative           7    supply of quality child care.     Minnesota, Florida
8    public sector financing strategies that states are         8    and Illinois, to name just a few, have done so.
9 uS1ng?       While most of the effective programs I've        9                  These states understand and are pay1ng
10   seen may focus on a targeted area, they are all            10   attention to important elements of quality care,
11   using ingenuity in financing to enhance positive           11   not just child care slots.     They are developing
12 outcomes for young children.                                 12 parent education materials on how to choose quality
13                 For example, in Rhode Island, they have      13   child care.     They are also 1ncreasing support for
14   approached HIPFA to use their 1115 waiver to               14   child care resource and referral agencies, that can
15   decrease the risk of lead poisoning in young               15   help parents move through the maze of child care
16   children by using Medicaid funds to replace window         16   options.    They are using funds to train providers
17   frames in substandard housing as a preventive              17   to increase quality of care.     Quality counts and
18 health measure.                                              18 many governors understand that low quality care
19                 Rhode island is also using general           19   will mean low level outcomes for young children.
20   revenue dollars to provide health insurance to             20                 Under gubernatorial leadership, a number
21 state certified family child care providers and              21 of other state legislature from both sides of the
22   their families, and it's obvious to me that none of        22   aisle with the support of the governor are passing
23   these financ1ng 1nnovations 1n that state would            23   leg1slation to 1mprove the qual1ty of care to young
24 have been possible without the governors' support            24   children, for example, Minnesota has recently
25 of his Commissioner of Human Resources.                      25 passed an early childhood education omnibus bill



                                        LAURIE WEBB AND ASSOCIATES                                             Page 9 to Page 12
    REPORTER'S     TRANSCRIPT OF PLENARY SESSION                                         NATIONAL GOVERNORS' ASSOCIATION

    TUESDAY, JULY 29, 1997

                                                               17                                                                  19
     1   many of these biological or environmental stressors         1   studies have relatively small populations that they
    2    that otherwise might compromise a child's healthy          2    examine.   For example, in one study children who
    3    development.   Our research has identified roughly         3 participated in the intervention experienced a 48
    4 two dozen programs, most of them implemented in               4 percent reduction in the use of special education
    5    small scale experimental studies.                          5    by age 15 compared with children who did not
    6               The programs do differ in the number of         6    participate in the program.
    7    ways including their Objectives in designs, such as        7                 In another example, mothers of the
    8 whether they aim to strengthen the parent-child               8    children in the intervention program experienced a
    9 relationship, to improve child health and nutrition           9    40 percent reduction in welfare utilization over 15
    10   or to enhance school readiness.     Some of the            10   years compared to mothers who did not participate.
    11   programs intervene soon before or after a child's          11               Now for some, these types of benefits
    12 birth, other programs begin later in infancy or in           12 that I've just listed are enough to justify early
    13 early childhood up to about age three.       All of the      13   intervention programs and to implement these
    14   programs targeted groups of d~sadvantaged children         14   programs on a larger scale.    But our analysis of
    15 using various criteria to identify children most at          15 two specific intervention programs shows that
    16   r~sk, such as the family's income or socioeconomic         16   carefully targeted early intervention programs can
    17   status or the child's health or cognitive                  17   also be justified in economic terms.    One way of
    18 development.     Many of these programs have followed        18 doing that is to demonstrate that the savings to
    19   children and their families long enough to measure         19   government exceed the costs of the programs
    20   both short-term and long-term benefits of the              20   themsel ves .
    21 programs.                                                    21                Taxpayers reap the benefits of these
    22              But despite the diversity of programs           22   programs ~n terms of higher taxes paid by program
    23   that exist and have been implemented and studied, a        23   participants because they work more and they earn
    24   consistent finding does emerge.     Well-targeted          24   more.    They benefit from reduced social welfare
    25   interventions can produce significant benefits for         25   costs as participation    in welfare programs and



                                                               18                                                                  20
     1   the child and the parents in several key domains.           1   other social safety net programs decline, and
     2 These ~nclude gains and emotional or cognitive                2 taxpayers benefit from savings ~n criminal justice
     3   development for the child often measured, for               3   expenditures due to reduced criminal activities.
     4 example, by improvements in the child's IQ, or even           4 Let me give you a couple of examples.
     5   improvements in the parent-child relationship.              5                In one program, we analyzed implemented
     6              Substantial improvements are also                6   in Elmira, New York.     It involved home visits by
     7   measured in educational processes and outcomes for          7   specially trained nurses to first-time mothers
     8 both children and parents such as improved and                8 during their pregnancies and for two years after
     9   higher levels of educational attainment and                 9   birth.
    10   reductions in the use of special education.       These    10                Children and their families have been
    11   studies also measure gains in economic                     11   followed for 15 years since the start of the
    12 self-sufficiency, initially for the parent and then          12 program.      We estimated that this program would
    13 later for the child.     For example, through greater        13 result in a net savings to government of


•   14   labor force participation and higher income,
    15 through lower welfare partic~pation
    16   levels of cr~minal activity.
                                                and reduced
                                                                    14
                                                                    15 savings, in this case, to government ~s over 4
                                                                    16
                                                                         approximately $20,000 per mother-child pair.


                                                                         t~mes the program costs.    Moreover since many of
                                                                                                                             The



    17              And finally, these studies measure              17   the savings to government arise from changes in the
    18   improvements in health outcomes such as reductions         18 parents' behavior such as reductions in mothers'
    19   in child abuse, gains in child nutrition,                  19   welfare utilization, cumulative savings to
    20   improvements in maternal reproductive health and           20   government exceeded costs after only three years.
    21 reductions in maternal substance abuse.                      21 In other words, a three-year pay back period.
    22              Typically, these benefits that I'm              22                In other cases, the savings to
    23   talking about are measured in multiple studies, and        23   government can take longer to accumulate,
    24   the magnitudes are large and statistically                 24   particularly in programs that generate improved
    25   s1gnificant despite the fact that many of these            25   outcomes in adulthood for children, S1nce the



•                                          LAURIE WEBB AND ASSOCIATES                                            Page 17 to Page 20
    REPORTER'S         TRANSCRIPT OF PLENARY SESSION                                                  NATIONAL GOVERNORS'                  ASSOCIATION

    TUESDAY, JULY 29, 1997

                                                                            25                                                                                  27
     1   designs.                                                                 1                 The credentials       of the other plenary
    2                   In this way, we can further optimize               the   2    presenters     on early childhood         both in February           and
    3    investments    we make in children        and their families            3    today are clear.        Dr. Bruce Perry got you in touch
    4    in these crucial     early years of life.          Thank you,           4    with the science       of the brain.        Dr. Jones and Lynn
    5    very much.                                                              5    Karoly have gotten you in touch with the math and
    6                        (Applause.)                                         6    sociology    of child care.        Rob Reiner,       through    his
    7                  MR. PRICE:      Let me assure everyone         with       7    extraordinary     television      special    and his gifts as a
    8    our late start, I'm keenly aware of the old Will                        8    communicator     has gotten you in touch with your
    9    Rogers's    line that the first ten minutes          of any             9    softer, more emotional          side.     And I am here with
    10   presentation     are to inform the audience,         the rest           10   apologies    to Governors       Whitman    and Governor     Shaheen
    11   is to entertain     the speaker.                                        11   to get you in touch with your masculine                side.     And
    12                  But that's appropriate       having watched              12   for th~s role I am uniquely             qualified.     According
    13   Siegfreid    and Roy last night disappear          an elephant          13   to my wife and the female members             of my management
    14   between    Judy and Lynn.       Judy'S use of my successes              14   team, I embody the four major male behavioral
    15   and Lynn's use of my evidence,          much of my comments             15   tra~ts:      Ignorance,   arrogance,       selfishness    and a
    16   have disappeared     anyway.                                            16   willingness     to make decisions         without    permission.
    17                  So let me begin by saying having read                    17                  So let's begin with ignorance.              If
    18   the transcript     of your last plenary        session on               18   you're over 40, please          raise your hand, and I know
    19   early childhood,     I am keenly       aware that I'm not               19   the governors     who are under         40 by the way, so your



•
    20   just preaching     to the choir.        I think in this                 20   constituents     will know.       NOW, I need you to raise
    21   situation,     I'm teaching     catechism   to the priest,              21   them a little bit higher.           Okay.     If your mother
    22   but there is virtue        in the priest's     patience     with        22   worked before     you -- I need them up again.              Sorry.
    23   the parishioner     because     only by his attentive                   23   If your mother worked before             you were the age of
    24   silence    can he learn the steps that must be taken                    24   six, full-time     in the work force, lower your hand.
    25   to afford salvation        to his flock.                                25   If your mother worked       full-time,       Governor    Allen,



                                                                            26                                                                                  28
     1                  If any organization       can lay claim to the            1   before you were the age of 6, lower your hand.                        You
     2   legacy of acting on behalf          of young children,       it is       2   can lower your hands.           We had about ten maybe,              15
     3   the National     Governors'     Association.     Before young            3 percent      lower their hands.
     4   children became     the issue du jour in Washington               and    4                  I asked that question         to a group of high
     5   in the media, visionary         governors   such as Dick                 5   school students       in San Diego and 8 out of 10
    6    Celeste    and Booth Gardner       were preparing    their               6   lowered their hands.        And it was at that point                 in
     7   successors     to act on behalf      of children.     It is              7   time that I understood          that the neighborhood           I saw
     8   humbling    to be asked to play a role in assisting                      8   in the rear-view       mirror    as I left to work each
     9   you in fulfilling        your legacy.     It is in the                   9   morning    was the one I was born into in 1956.                  Not
    10   context of juxtaposing        the temporary     nature of               10   the ones my children       were being       raised    in ~n 1996.
    11   roles with the permanence          of a legacy that I make              11   And me, as a white, middle-class             male was making
    12   my comments     tOday.                                                  12   decisions    predicated    on my own childhood           and not
    13                  To quote Admiral      Stockdale'S    great               13   the reality     of the world as it is today.             So I want


•   14
    15
    16
         opening    line in the 1992 vice-presidential
         "Who am I and why am I here?"
         middle-aged,     middle-class
                                                  I am a white,
                                            bank president
                                                                 debate,


                                                              raised by
                                                                                 14
                                                                                 15
                                                                                 16
                                                                                      you to th~nk about this demographic
                                                                                      anchor to the rhetoric
                                                                                      to your actions
                                                                                                                      on child care.
                                                                                                            on child care.
                                                                                                                                      since it is the
                                                                                                                                            It is anchor


    17   a career military        officer   and a stay-at-home       mom         17                  In 1950, 14 percent         of mothers    with
    18   whose children     have never seen the inside of a                      18   young children     were in the work force.             Today that
    19   child care center.         When Governor    Romer appointed             19   number    is almost    60 percent.        31 percent    of all
    20   me to my position        as chairman    of Colorado's                   20   births    are out of wedlock       today.     40 percent        of
    21   Business    Commission     on Child Care Financing,         Sally       21   every child in this country,             40 percent    of children
    22   Vogler,    who's his chief aide on children's           issues,         22   wake up every morning       in a home without          a father.

,   23
    24
         and is here tOday, and she reviewed
         she said, This guy is the Antichrist
                                                        my resume and
                                                         of child
                                                                                 23
                                                                                 24
                                                                                                     The thing that isn't d~fferent
                                                                                      think of Bruce Perry's          comments    at your last
                                                                                                                                               today, to


    25   care .                                                                  25   plenary,     is the way that babies'         brains    develop.



•                                                    LAURIE WEBB AND ASSOCIATES                                                            Page 25 to Page 28
,   REPORTER'S TRANSCRIPT OF PLENARY SESSION

    TUESDAY, JULY29,        1997

                                                                  33
                                                                                           NATIONAL GOVERNORS' ASSOCIATION



                                                                                                                                     35
     1 payor for child care serVLces in your state,                     1                My father's proudest moment was to be on
    2    particularly with the new block granting and the              2    the Champs-Elysees for VE day 1945 and thLs was our
    3    way the entitlements are passed out.     If we look at        3    family's way of honoring my father.        The entry
    4 three programs nationally that affect poor kids, we              4 brought us past the tombs of          220 French boys.    Boys
    5 have the beginnings of full funding.        You have the         5    I say because they had all been between the ages of
    6    existing child care entitlement of $1.9 billion in            6    16 and 22 when they had died.       Their job had been
    7    the current budget with approximately another                 7    to hold the plateau of Glieres in the Alps, where
    8 billion dollars in initiative monies. You have the               8    the allies were dropping arms to be smuggled down
    9 option of transferring at least that much or more                9 to the French Resistance.           They were surrounded by
    10   out of TANF.    And Governor Romer is not here today          10   the Italians and Nazis and Lnfiltrated by the
    11   so I can say this with impunity, and just to be               11 Milice, the French collaborators.          When the Germans
    12 mLschievous I am not an elected official.       I'm a           12   had had enough, they attacked in sufficient numbers
    13 private citizen.      You have $3.6 billLon in Head             13 to leave      200 dead on the plateau.
    14 Start.                                                          14                 When the order to retreat was gLven,
    15                I think Governors Engler, Governor Romer         15   there were but 27 French boys left.        Seven escaped
    16 and Governor Voinovich have shown courage in                    16 but 20 were killed in the attempt.          20 bodies were
    17 opening the dialogue as to what role Head Start can             17   left stacked like cord wood in the village square
    18 playas      the foundation for a fully functioning              18 of the occupied town of Thone at the base of the
    19   child care system for the poor.     As a business             19   plateau.     Given the times and the fear, there was


•
    20 person, it is only logical that the great resources             20   uncertainty as to what the townspeople should do
    21   of this wonderful program, both financially and               21   with the bodies.     Finally, the mayor was asked what
    22   experLentially be put to use in the solution of a             22   to do.     And carefully and thoughtfully he answered,

•   23
    24
    25
         child care dilemma of poor children in general and
         the problems of financially strapped governors.
         You can lead to a system as governor that
                                                                       23
                                                                       24
                                                                       25
                                                                            "These are our children, they shall be accorded
                                                                            all the dignity that France has to offer."
                                                                                          You are both the CEO of the largest



                                                                  34                                                                 36
     1   accommodates the poor.     Build that system and the           1 group of employee'S in your state and the single
     2   rest of America will follow.                                   2   largest payor for child care services.        My role
     3                And this where I come to the question             3   today has been to provide you some thoughts on how
     4 about making decisions.       In my life, I answer to my         4 to deal with your dilemma.          Your legacy will be
     5 board, my Lord and my wife, not necessarily in that              5   your answer to what shall we do for these
     6   order.    You governors have a far larger public.              6   children.
     7   Anthony King in the Atlantic Monthly of January of             7                      (Applause.)
     8   this year, he's an Englishman, wrote a brilliant               8                 GOVERNOR MILLER:     I want to thank all
     9 article in my opinion on American politics.                      9 three panelists for those enlightening and

•
                                                            His
    10   central thesLs was that American politicians are              10   challenging remarks, and we're going to have some
    11 seen as vacillating and cautious, when in reality,              11 dialogue with the governors at the conclusion of
    12   they are asked to make the most dLfficult and                 12   our next speaker's presentation.        I know that in my
    13 courageous decisions of any politicians in any of               13 own budget recently completed, we just approved $8
    14 the western developed democracies.                              14 million to fund, we characterize as a
    15                Ever since I was asked to make thLs              15   family-to-famLly    initiative, and Lt included such
    16 presentation,      I have agonized over the propriety           16 things as expansion of Head Start, classroom on
    17 and the tone of any call to action I might make.                17 wheels.       We call them cows or busses here.     They go
    18 The task weighed so heavily upon me that I left on              18   in to provide early childhood pre care centers for
    19   vacatLon.    My wife and I, my famLly took a visit to         19   education for some of the communities that need
    20   France.     It was in a small village in France that          20   them, family resource centers in individual
    21   this angst was laid to rest, laid to rest                     21   communities and most importantly home visitation
    22   ironically in a graveyard.     My wLfe and I had              22   after birth.
    23   stopped to visit a small country museum dedicated             23                 NOW, that should be motherhood and apple
    24   to the French Resistance in general and a small               24   pie and yet it was the last thing that was approved
    25   action in that area.                                          25   by our legislature.     It was the most difficult



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,   REPORTER'S         TRANSCRIPT OF PLENARY SESSION

    TUESDAY, JULY 29, 1997

                                                                               41
                                                                                                         NATIONAL GOVERNORS' ASSOCIATION



                                                                                                                                                             43
     1   studied    this and really understood          it, he realized              1   about new research        in bra1n development.           Well,
     2   that all roads lead to Rome.           It all goes back to                  2   it's been around a long t1me but it hasn't been




•
     3   the first three years.           Everything    that we do goes              3   disseminated     to the public.        That was my job, and
    4    back to the first three years and Lawton Chiles                            4    hopefully    that will make your job easier.
    5    understands    that in his bones.           So he fought.          And     5                   So we've been seen.          It's out there.
    6    Governor    Miller    fought.     But this shouldn't          have to      6    The newspapers       have covered     it.    It's allover         the
    7    be a fight.                                                                 7   media now and everybody        understands       it.     OUr web
    8                  You know, why is it a fight that we have                      8   site alone got over -- what is it, a hundred
    9    to take care of our children          in the first three                   9    thousand    hits, something      like a hundred         thousand
    10   years?     This is not a f1ght.        This is something            we     10   h1ts just in, you know,         in the last couple of
    11   must do as a matter       of course.        Howard Dean knows              11   months.     And we've created       some materials        to go
    12   this in his bones.        George Voinovich       knows this in             12   with the show, we had a community             mob1lization
    13   his bones.     Christy Whitman       is now understanding                  13   brochure    and a parenting     brochure      that has been
    14   this in her bones,       and there are a number of others                  14   distributed     in the tens of thousands.
    15 that I'm not as intimately            involved with as these                 15                  We've    just now finished      this video The
    16   governors    that I've mentioned.           Jim Hunt at the end            16   First Years Last Forever,         and I urge you to look at
    17   of the table understands          this in his bones.           You're      17   it.   It's the best thing that has come out of our
    18   trying to solve problems.           That's what you're                     18   campaign    by a long shot.       It's 28 minutes         and it
    19   trying to do, and this is the way to do it.                                19   talks about the impact of brain             development     and how
    20                 Now having    sa1d that and preached             to the      20   you care for your child         in the first three years,
    21   converted,    hopefully    I'm here as a cheerleader               and     21   and 1t will be distributed          around the world        in the
    22   my job is to keep public          awareness    up.     We have to          22   millions,     in the many millions.
    23   keep that up to make your jobs easier.                 I want to           23                  Initially,    we had a distribution          plan
    24   make your jobs easier.          And that's what I'm doing                  24   for all our materials        because    we have a
    25   and that's why I've taken this position,                and I'm in         25   relationship     with about     130 national      organizations,



                                                                               42                                                                            44
     1   it for the long haul.           Let's just talk a little bit                1   the American     Academy    of Pediatrics,       the Library
    2    about where we came, where we are and where we're                           2   Association,     the National     Governors'     Association,
     3   going.     Before,    in February    I addressed       you and we           3   the list goes on for quite a while,              and that was
     4   talked about what we were going to do and the I Am                          4   going to be our main source of distribution.                     Well,
     5   Your Child Campaign       about raising public                              5   when we finished        this video,    Johnson    and Johnson,
     6   awareness.                                                                  6   who funded     it, looked at it and said,          "My God.
     7                 And since that time, we had a White                           7   This is an incredible        tool we have here."           And
     8   House conference       that we were in part responsible                     8   they've    decided     to distribute    it allover        the world
     9   for organizing.        We had Newsweek       magazine       put out         9   in every country        that Johnson    and Johnson       does
    10   four million    issues,    special    issues that got out to               10   business.
    11   people around the country,          and we had a television                11                  We just recently       got a call from the
    12   show that reached       10 million    people.        Which    is           12   Ch1nese    asking        the Chinese    television       ask1ng to
    13   going to be rerun August          17 and hopefully          reach a        13   play the video on Chinese         television     which we're
    14   lot more people.                                                           14   going to agree to do.         In India, they wanted our
    15                 Well, that's a good bang that we've                          15 materials.        In Australia,    New Zealand       want the
    16   given this issue.        We've put it front and center                     16   materials.      So it's going to penetrate             around the
    17   for the first time.        people    in early childhood            have    17   world.     The Department     of Defense      called us,
    18   been wrestling       with this for years,       15, 20, 30, for            18   William    Cohen, and asked us because           they had seen
    19   Barry press    in /STOPB his whole          life, 50 years, and            19   it, if we could replicate         the video      in the tens of
    20   talk to Bea Romer, Governor          Romer's    not here but               20   thousands     for the military      and military        members    who
    21   Bea Romer said,       "You came to --        the cavalry       came        21   have young children.         We are going to do that.
    22   to the rescue when you came," because                this                  22                  We had a meeting       recently    in New York
    23   1nformation    about early childhood          and about brain              23   City, Jim from Smart Start.            We had Karen Ponder
    24   development    has been around for 15 years.                 It's not      24   came to visit,       and we also had Mildred           Winter who
    25   new.     It's been around       15 years.     We're    talking             25   would help us start the Parents As Teachers



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                                                                                                                                                               51
     1   children,    and I know it's disappointing.                Governor            1   trying to make a comprehensive           integrated    program
    2    Almond's    here.     He's disappeared       he's so upset                     2   work for Trenton     and then ultimately       for the entire




•
     3   because    his state has done so well in terms of                              3   State of New Jersey.         A plan is now being worked
    4    ~nsur~ng kids that he's already             reached       the goals           4    out where we can figure out how to make these
    5    so he doesn't       get any of the $24 billion.              I think           5   partnerships    work on a community        by community      basis
    6    there's    about five or six governors             that don't                 6    and you all know, that's        the way it needs to be
    7    participate     which    is unfortunate.                                      7    done.     We need to identify     the leaders,     make sure
    8                   I know you're      all, you know,          lobbying            8    that those leaders       have a stake and investment          in
    9    heavily    for more loosely block granted,             you know,              9    this, and then find a way to cobble together                the
    10   funds.     And I know the President          wanted more                      10   funds.
    11   restricted     funds, and I can understand            both sides              11                  I, kind of naively,       but not so naively,
    12   and why they wanted        it, but it's Just a shame it                       12   I'm not that dumb.        I went to Washington        before we
    13   seems to me that the governors             who are succeeding                 13   launched    our campaign     and talked to the people         in
    14   and doing what they need to be doing are not being                            14   Washington.      Well, at the time and this is two or
    15   recognized     and not being rewarded          in the success                 15   three years ago, there is not a great will up there
    16   mode.     And there should have been some kind of                             16   for -- and there are not new funds.            We know we've
    17   provision     for governors      who have met those                           17   all been facing this budget        debate    for quite a
    18   standards    to be, maybe that money           could be used for              18   while, and now it's resolved.            But the economy      has
    19   child care or something          else because       in order for              19   gone steadily pretty       well in the last three years.
    20   us to make this work,          it's not going to be just                      20   And in a year or two, there may be funds ult~mately
    21   health care over here or child care over here or                              21   that will be freed up, and we only hope it can be
    22   intervention       programs    over here or parent          education         22   because,    Doug Price, you're     absolutely      right.     We


•   23
    24
    25
         over here, they have to be integrated.
         have to be integrated          in a comprehensive
                        So what we have to do is find ways to
                                                                And they
                                                                    way.
                                                                                       23
                                                                                       24
                                                                                       25
                                                                                            need money.
                                                                                            programs
                                                                                            inexpensive,
                                                                                                            We need money     to do this.
                                                                                                        that Lynn Karoly talks about are not
                                                                                                            but wildly more inexpensive
                                                                                                                                                The


                                                                                                                                                  than the



                                                                                  50                                                                           52
     1   pair up public       and private     partnerships         and make             1   alternative.      But we need to make the investment.
     2   specific    investments       in communities       in a                        2                  So until we can partner       federal      dollars
     3   comprehensive       way with a one-stop        shopping      where a           3 with state dollars and with local communities                  and
     4   parent of a young child can go to a family resource                            4   the business     community,    we've got to start on a
     5   center and know that there's             quality    child care                 5   community-by-community        basis.     So we would      like to
     6   available,     health care, intervention           programs        for         6   arrive at that CEO summ~t to be able to point to a
     7   families    at risk and parent          education.        That is one          7   couple of model     communities    and see how it's being
     8   of the functions        of this CEO summit.                                    8   done in a comprehensive        way so that when the
     9                 The second of which will be what the                             9   federal    funds are loosened     up, and they will be
    10   CEOs are doing in their own companies                in terms of              10   because    this is immutable.      This is not going to go
    11   family-friendly       work pol~cies.        But the third thing               11   to away.      It's immutable.     When those funds are
    12   and to me, the most important             thing and what we                   12   released,    we'll have some models        to po~nt to and
    13   need the governors'        support      for, is to talk about                 13                                           s
                                                                                            say, "This is how it can be done and t.ha is the
    14   how governors       and private    industries       can partner.              14   way the federal money        can be used."
    15   What are the ways that that can happen,                   and let's           15                  So I would urge you to check your
    16   explore    that.     There are a number of good things                        16   calendars.     We'll be talking        to you about helping
    17   already being done.           We'd love to share that with                    17   us with the CEO summit.         That's    about all I have to
    18   these CEOs, but we'd also love to come to that CEO                            18   say.     I said a lot.     I don't know what else to say
    19   summit w~th some models          ~n place,     some real models,              19   except that like I say, this is not going away and
    20   working    models    that show how these services             can be          20   I am so thrilled     that the NGA has taken the lead on
    21   integrated     in a convenient       family resource         center.          21   this.     It's just so great that Governor         Miller     is
    22                 And we've       started    a number of things                   22   passing    the baton to Governor       Voinovich    who is
    23   already with Governor          Voinovich,    Governor       Locke,            23   mak~ng    it his top pr~ority,     and, Governor       Carper,
    24   Governor    Whitman.     You know, we've been very, very                      24   where are you?      You're    over there, and I met with
    25   involved with Governor          Whitman     in New Jersey         in          25   Governor    Carper yesterday     and he also pledges         to



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                                                                                                                                      59
     1   loved one of their programs.     New York has an             1   together, I'd like to see a holistic approach there
     2   excellent program.     But the point is, to try to           2   as well.     And I'd like to see governors agree that
     3   focus on the well-being of the youngster so that             3 maybe we don't go into other peoples' states and
     4 person can ultimately become a productive member of            4 try to raid jobs, and maybe we don't wLnk when we
     5   society.                                                     5   hear ideas being spawned of shipping people
     6            The dilemma that we run into is,                    6 elsewhere that you don't want.
     7 frankly, financial. We've made the assets                      7            But I would also particularly lLke to
     8 available for children. We like to feel, and I                 8 see us focus on fetal alcohol syndrome. I can
     9 think we are, number one in the country in this                9 guarantee you that within the next several years,
    10   area.     But I'll tell you what we also are.    We're a    10   when you get down to identifying one of your large
    11   net imports from other states, and it shows up in           11 causes in juvenile problems, it's FAS.            So with
    12 our prison rolls.       If I recall correctly, 40             12 that, Mr. Chairman, I want to thank you, very much,
    13 percent of our inmates came from out-of-state                 13 and I want to thank all the speakers for theLr job
    14   within recent years.     We have heard stories, and we      14   well done.     Thank you.
    15 believe they are true that people are paid bus fare           15                 GOVERNOR MILLER:    Thank you.     Governor
    16   to go to Minneappolis-St. Paul.     They have higher        16   Dean.
    17 welfare up there.       They'll pay you better, all           17                 GOVERNOR DEAN:     Thank you,
    18   those kinds of things.     We are also beset with           18   Mr. Chairman.     I would like to agree with much of
    19   governors and their economLC development                    19   what Governor Carlson has said and just mention
    20 organizations sending in rating parties to tell our           20 that one concern that I have that Rob Reiner
    21 companies that they could do better tax-wise if               21 brought up in his address. We are beginning to
    22   they went elsewhere, and one of the areas they like         22   learn more about the federal budget agreement, and
    23   to talk about is how much we spend on social                23   I think by and large a very good agreement for many
    24   services.                                                   24   states in America.     There are five states,
    25                 Now, if we're going to have an                25 Minnesota, Washington, and Hawaii and one other



                                                                58                                                                    60
     1   integrated focus on the well-being of children, we           1   pardon?    Rhode Island, thank you, that which Rob
     2   are also going to have to have to make some tougher          2   singled out that are not really helped very much,
     3   decisions on the other side of the ledger.        We         3   but I just learned that there's an additLonal
     4 can't have it both ways.       Those states that take          4 problem for any state that is up, for example, to
     5   the risk, those states that invest the money, right          5   185 percent of poverty such as the State of Georgia
     6 now has some extent get punished.         We get punished      6 which gives it zero to six, they would be capped at
     7   by the federal government in every single aid                7   200 percent.
     8   formula they've ever devised, we are at the                  8            So unfortunately, we're going to get in
     9   bottom.     We did unLversal health care.    We put          9 our state $14.6 million that we can't spend. So I
    10   children first into health care.                            10   think I would hope that before the ink gets
    11                 What happens when the feds decide to          11   finalized on this budget agreement that this
    12 reimburse on health care?       punish Minnesota because      12 business of allocations for children gets worked
    13 we're 17 percent below the national average in                13 out properly, because it does seem to be a short
    14   costs.     Reward the inefficient, punish the               14   circuit in this particular aspect.        And I would
    15 efficient.      We lose on agriculture.    As a matter of     15 urge on a       bipartisan -- Governor Almond and I met
    16   fact, I think we're 46th to 47th among states in            16   early this morning and on a bipartisan basis, I
    17 what we get back from the federal government.                 17 would urge governors to call theLr Senators and
    18                 So we've got a long way to go to              18   their Congressmen, particularly if they happen to
    19   straighten out all the disincentives that have been         19 be in the conference committee and let them know
    20   built in the system.     You and I, as governors, will      20 that this 25 percent add-on cap is a real problem
    21 go to this meeting, the soft side of us will come             21 for any state, not just Governor Carlson's or this
    22 out and say, "Yes, we're pro chaLdren ;." We go back          22   one's been among the leaders, but far more than the
    23   rLght into a hard session and say, "Boy, oh, boy.           23   five states I thought this orLgLnally affected.
    24   How can we take some jobs from X and move them to           24                Anybody here that's at 185 percent of
    25 Y?"    And so when you talk about bringing business           25 poverty for any category is now going to be capped



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                                                                                                                                                                 67
     1   state address,       for convincing     his legislature          of          1   incentive    payments    to agency partners        that recruit
    2    the importance       of investing     in child care in light                2    and train adoptive       families,     make initial
    3    of the new work requirements           under welfare       reform.          3 placements,        finalize    adoption    and provide       post
    4    Illinois now provides        child care subsidies          to all           4    finalization     services.       Governor   Voinovich.
    5    working    families     with incomes below       50 percent       of        5                  We'll trail that for a minute.               Governor
    6    the state medium        income.     All recipients       will               6    Voinovich    was called out for a second so we'll come
    7    contribute     to the cost of the care, but the new                         7    back to him in a minute.
    8    program    is intended     to be more equitable          and                8                  To Governor     Howard Dean, the father of
    9    efficient     subsidy    for working     families.                          9    the NGA Campaign       for Children     in 1994 with a
    10                 Unfortunately        Governor   Edgar could not               10   Success    By Six initiatives       in Vermont.       This
    11   be with us today, but we congratulate               him for his             11   community    gates program       as mult~ple     components       to
    12   outstanding     work on children'S        issues.       Governor            12   provide    services    to 9000 children       at costs of $100
    13   Edgar.                                                                      13   per child.      In the last two years,          the program       has
    14                  To Governor      Jim Hunt,     for his                       14   grown to include welcome          baby visits     for families
    15   persistence     in a raising       funds to make the                        15   with a new child, a family          l~teracy     program     that
    16   nationally     recogn~zed    Smart Start Program          statewide         16   makes trained     staff and books       available     to all
    17   in North Carolina.         Currently    a little over half of               17   families,    and an incentive       program     to improve the
    18   North Carolina       counties     have public-private          Smart        18   quality    of child care.        This initiative      undoubtedly
    19   Start partnerships.         Activities      along these local               19   contributes     to the 73 percent       drop in young sexual
    20   partnerships     include    a neonatal      tracking     program            20   abuse victims     over the past six years.            Governor
    21   for at-risk     ~nfants, paternal        and child support                  21   Dean.
    22   groups,    increasing     the number    of child care spaces                22                 To Governor     Cecil Underwood,        for his
    23   designated     for infants and toddlers,          teaching                  23   continued    support    of the Starting       Points Early
    24   education     and support    services     and community                     24   Childhood    Centers    in n~ne West Virginia         counties.
    25   outreach    and awareness.         Governor    Hunt.                        25   These centers provides        comprehensive       services       and



                                                                                66                                                                               68
     1                  To Governor      Christine     Todd Whitman       for         1   support    to families     with young      children   and build
     2   her comprehensive        early childhood       initiative       also         2   upon the extensive       family resource        network    that
     3   called Bright Beginnings.            This $8.5 million                       3   receive public     and private      funds to identify         and
     4   initiative     will increase       the quantity     and quality              4   address    the needs of the local communities.
     5   of child care ~n New Jersey and encourage                                    5   Governor    Underwood.
     6   collaboration     amongst various        state programs,         Head        6                 All of these submissions           will be
     7   Start, child care providers,           parents    and the                    7   available     in the media press       room and through          the
     8   private    sector.      Bright Beginnings       will help to                 8   NGA web page so we can spread the word about the
     9   provide    the necessary     support     for mothers      of                 9   exciting    things that are happening           in the state.
    10   infants and toddlers        participating       in the                      10                 Now as Doug Price pointed           out to us
    11   governors'     welfare    reform program,       Work First New              11   earlier,    public-private       partnerShips     in support        of
    12   Jersey.     Governor     Whitman.                                           12   early childhood       initiatives    make sense for both the
    13                  Your vice-chairman,        Governor      George              13   business    and the public policy perspective.                OUr
    14   Voinovich,     for his Early Start and Adopt Ohio                           14   corporate    partners    bring    expertise     and resources
    15   programs.      Early Start offers a collaborative                           15   that complement       our strengthS     in the public        sector,
    16   community-based       integrated     system of services          and        16   and ~n this last segment          of this morning's        session,
    17   supports,     helps strengthen       and preserve       families            17   we want to highlight        two offers of corporate
    18   experiencing     problems    before    they become       a crisis.          18   partnerships     that I really      think that you're         all
    19   The program     operates    in 30 counties       and includes               19   going to be very interested          in.
    20   home visits,     medical    services,     parenting      education          20                  One is with Hallmark         Cards and the other
    21   and referrals.                                                              21   is with Pfizer.        The Hallmark     Cards Immunization
    22                  Adopt Ohio is a public-private                               22   Greeting    Cards Program,       despite    the efforts      that
    23   partnership     created    to double the number of                          23   we've all made in our states,           our national
    24   successful     adoptions    of children       who are waiting               24   immunization     rate hovers      around    78 percent     and is
    25   for a permanent       family.      The issue provides          clear        25   dismally    low compared     to that of other developed



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,   TUESDAY, JULY 29, 1997

                                                                   73                                                               75

     1   amount.     But it also gives the children                      1                 This is a great way to create a program
     2   protection.     It's one of the best investments we            2    of reminding parents about gett~ng their children
     3


•
         can make.     We hear from many of them about how               3   immunized on time.    As many of you know, and if you
     4   effect~ve they think the immunization card is.                 4    think about both former colleagues like Governor
    5                  We want to answer the questions that you         5    Merrill and Governor Buy and now Governor Locke,
    6    have asked of how can you get that into your                   6 who'S a new father, and Linda and I, of course,
    7    state.     Thanks to the commitment of Hallmark and            7    have a l8-month-old daughter, Governor Merrill or
     8   this opportunity, Governor Miller, that you've                 8 Governor Engler who has h1s hands full with three,
    9    given us here at NGA, we are getting information to            9    we can appreciate personally the importance of
    10 you as to how all governors can get into the                     10   immunization, and what Hallmark is offering here I
    11   program.                                                       11   think is a tremendous program and commitment on
    12                 When I talked about this very briefly,           12   their part in this kind of a partnership.
    13   at a session at the President's Summit on America's            13                 We have a program in Kansas, we happen
    14   future, General Powell was in the audience.        I           14   to call it Operation Immunize.     L~nda has been very
    15 didn't know it.      We had a darkened room and he took          15   involved in that and it has been successful over
    16 notes and this is one of the things he picked out                16   the years in helping us raise our ~mmunization
    17 to talk about at his conclusion of the summit, and               17   rate.     We still have a long way to go, but through
    18 here's what he asked the crowd; he said, "Does this              18   the efforts of Hallmark, it's making our job a lot
    19   cost a lot of money?     Is this brain surgery?     Can        19   easier.     I also would encourage you, this is the
    20 we do it everywhere?"       And, of course, answered it          20 packet, if you haven't dug it out already in your
    21   that of course we can.                                         21   stack, you should do so and take a look at the
    22                 Well, his words are prophetic.     It is         22   smaller version of the card that's included that
    23   true that now we are getting this information to               23 Mel referenced.
    24 you.       We can have this very direct, simple program          24                 I think that we should not underestimate
    25   available.     Something we can do that's very                 25 what it means to new parents to receive a



                                                                   74                                                               76

     1   effective to get that immunization rate up.        I want       1   personalized card from a governor.     In fact, the
     2   to turn this over to Governor Graves to tell the                2   thing that struck me most about our efforts in
     3   Kansas success story and tell you how you can take              3   Kansas were the kind of comments we got back and
     4   advantage of this wonderful program provided to us              4   the one I want to share with you from Crystal wrote
     5   by Hallmark.     Bill.                                          5   to Linda and I said, "Governor and Mrs. Bill
     6                 GOVERNOR GRAVES:   Mel, thank you very            6 Graves, I just wanted to thank you for the card.          I
     7   much, and thanks to you and Jean for your                       7   never got a card from high authorities like you and
     8   leadership in Missouri and also, Mr. Chairman,                 8    your wife, Linda.     Our baby is very, very special
     9   thank you for allowing us to tell you about                     9 to me.       Enclosed is a picture, please enJoy.   Thank
    10 Hallmark's offer, and I want to perhaps reference                10   you, Crystal."     And then she says "PS, please, keep
    11   to certain things, Doug's comments about where do              11   in touch."
    12   we find money for these things.      Just so I can get         12                And I think again it's cr~tically
    13   everyone's attention, this is a free offer by                  13   important that we recognize as governors that we
    14   Hallmark, so for the governors who are not paying              14   have a constituency that looks to us for
    15 attention here, you're being given an opportunity                15   leadership, but also in effect knows us through our
    16   to participate in a program that has the potential             16   public appearances and thinks of us, you might say,
    17 to make a big difference in your state, and I will               17 as I hope friends.
    18 tell you that I happen to believe this is in your                18                 Let me close by saying that there's a
    19   best ~nterest to take advantage of this; one, it's             19   blue sheet in the packet, and it's sort of the
    20 good politics; two, it's good public policy; three,              20   quick and easy version of how you sign up for th~s
    21   it is good in terms of the parents who benefit from            21   program.
    22   it because it helps them with quality of life                  22                 I want to point out to you that what's
    23 within their family, but aga1n going back to Doug's              23 being offered is Hallmark w1l1 donate to any
    24   challenge to us, the reason for you to do this is              24   interested state or territory enough of these
    25 because it's good for the kids.                                  25   greeting cards and envelopes to reach the parents



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,   TUESDAY, JULY 29, 1997

                                                             81
     1                     REPORTER'S CERTIFICATE
    2




•
    3    STATE OF NEVADA
                              ss
    4    COUNTY OF CLARK
    5
    6               I, Laurie H. Webb, Certified Shorthand
    7    Reporter, do hereby certify that I took down in
    8    Stenotype all of the proceedings had in the
    9    before-entitled    matter at the time and place
    10   indicated and that thereafter said shorthand notes
    11   were transcribed into typewriting at and under my
    12   direction and supervision and that the foregoing
    13 transcript constitutes a full, true and accurate
    14   record of the proceedings had.
    15              IN WITNESS WHEREOF, I have hereunto set
    16 my hand and affixed my official seal in my office
    17   in the County of Clark, State of Nevada, this
    18 day of                      , 1997.
    19
    20
    21
    22
    23                Laurie H. Webb, CSR No. 50, RPR-RMR
    24
    25




                                             LAURIE WEBB AND ASSOCIATES                 Page 81 to Page   r
    •
,\;,




        NATIONAL GOVERNORS' ASSOCIATION




                 Held at The Mirage
          3400 Las Vegas Boulevard South
             Las Vegas, Nevada 89109




\




            PLENARY SESSION
            Tuesday, July 29, 1997




                LAURIE WEBB & AsSOCIATES
                COURT     REPORTERS

                 517 South Ninth Street
                Las Vegas, Nevada 89101
                    (702) 386-9322
                                                                                 1




•    1
    2
    3
    4
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     6                NATIONAL     GOVERNORS'           ASSOCIATION
     7
     8                               *********
     9
    10                            PLENARY        SESSION
    11
    12                               *********
    13
    14
                             Held at The Mirage
    15                 3400 Las Vegas Boulevard South
                          Las Vegas, Nevada 89109
    16
                          Tuesday,         July 29, 1997
    17
                                      *********
    18
    19
    20
    21
    22
    23
    24   Reported    by: Laurie H. Webb, CCR No. 50
    25                   RPR-RMR




                    LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                 2




 1                     GOVERNOR         MILLER:          Good     morning.            If we
 2   could    have     all     the governors             take      their       respective
 3   places     so we can begin               this     morning's          plenary
 4   session.
 5                     During       my year         as chairman           of the
 6   National       Governors'          Association,             I have        focused          on
 7   the    first     three      years.         Some     of us as governors
 8   perhaps     are    accused         on occasion            of still         being       in
 9   the    first     three      years      of our       life      the way          we act,
10   but    in reality         I'm talking           about       the     literal          first
11   three     years    of the        children         in this          country.           The
12   most    critical        period       in a child's             development             when
13   much    of the basis            for later         learning          and growth             is
14   established.            It's     really        impressive           when       you
15   detail     all    that      has been         done     in this        area       in this
16   past    year,     but     certainly          I and      even       our    association
17   did not     do it all.
18                     Governors,           in many        ways,        have
19   contributed        to sharing            ideas,       raising         issues         and
20   promoting        investment          in children            in their           earliest
21   years.      And    I appreciate              the commitment               of
22   governors        to children           and     to their           families.
23   However,       our work         in this        area     is far        from      being
24   finished.         Fortunately            for us,        collectively             and as
25   an association,             this      is a topic          that      Governor




                 LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           3




 1   Voinovich    will     commence         as his primary                 focus
 2   beginning    tomorrow        as our new chairman.
 3                 We have made progress,                      but none of us
 4   should    be satisfied         until       every      child      is guaranteed
 5   a chance    to reach        his or her fullest                  potential.            To
 6   chronicle    of few of the past year's                        activities,         the
 7   NGA Center     for Best Practices                 has worked            closely
 8   with    I Am Your Child          and their          national           public
 9   engagement     campaign.           You probably               saw the TV show
10   and here    is their new video,                 The First             Years    Last
11   Forever,     I think      available          for a dollar              and a half,
12   right Rob, or a dollar               and a quarter?                   A dollar    75.
13     I was trying        to get a quarter                off the deal.
14                  You'll       remember         that Rob Reiner              spoke       to
15   us at the winter          meeting        about      this effort           to
16   mobilize    communities,           parents,         early       childhood
17   practitioners       and policy           makers       to act on behalf                of
18   young    children.        And we're         going       to hear more            from
19   Rob about     the campaign's             next efforts             later       in this
20   session.
21                  The NGA Center              also conducted               a meeting
22   with    state and national             experts        to take stock of
23   what we have     learned         about       implementing
24   comprehensive       programs         for young          children         and their
25   families.      You can read about                 the lessons            learned




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             4




 1   from that meeting          on the NGA web page.                       The center
 2   has created     a special         page on its web site devoted
 3   to early    childhood        issues,       and a resource               guide          for
 4   governors     has also been created                  that can serve                as a
 5   quick    reference     for ideas and information                        that you
 6   can use in designing            and implementing                 your
 7   program.     And this will be distributed                            to the
 8   governors     only session          that will          follow         today.
 9                  There's       some 66 programs                highlighted               in
10   here,    and I find it to be very                  interesting              to be
11   able to compare        and contrast.               I think           this
12   association,       privately,         is best known              for its
13   plagiarism,     and this is a great                  way to help.                 We
14   can steal     ideas    from each other               following          past
15   tradition.
16                  As you remember,              we had a successful
17   plenary    on children's          issues       when we met in
18   Washington     in January,          and I know that this session
19   will be equally        stimulating.              To start            the session
20   off, we are going          to hear        from a panel               of experts
21   about    effective     strategies           for achieving              positive
22   results    for young       children,         and our panelists                    are
23   Judith    Jones,    Lynn Karoly           and Doug Price.                   I'm
24   going    to introduce        all three         and then let them
25   speak    in turn.      Judith       Jones       is a clinical




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         5




 1   professor    of public       health       at Columbia               University.
 2   In addition,     she directs           the national            program
 3   office    at the Robert        Wood Johnsons                Foundation        Head
 4   Start    Initiative     and serves          as senior          advisor        to
 5   the Carnegie     Corporation           for the Starting                Point
 6   Stage    and Community       Partnerships             for Young
 7   Children's     Branch    Program.
 8                  Lynn Karoly         is a senior              economist        at
 9   RAND and director        of the Labor             and Population
10   Program.     Dr. Karoly        is currently             leading        a
11   interdisciplinary        team of RAND             researchers              who are
12   investigating     the costs          and benefits             of early
13   childhood     intervention         program.
14                  And Doug      Price       is the president                  of First
15   Bank Colorado,      the State's            largest          locally        owned
16   bank.     Mr. Price     has focused           his private             efforts       on
17   making    life better       for children            and families,
18   particularly     in the areas            of housing           and
19   nutrition.
20                  He is the chairman               of the Colorado
21   Business     Commission      on Child         Care Financing                which
22   was appointed     by Governor            Roy Romer           to examine           the
23   needs    of working     parents        and their            children.         The
24   governors     are looking        forward        to each of panel's
25   insights     and comments        will begin           with Dr. Jones.




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           6




 1                    DR. JONES:          Good morning,              everyone,          and
 2   thank you, Governor            Miller,        for your          superb
 3   leadership       in keeping        the attention               squarely
4    focused    on the issue of young                  children            which    is of
 5   enormous    importance         to the very            future          of this
 6   nation.     I'd also like to take this opportunity                                  to
 7   thank    the governors         in Florida,            Colorado,          Georgia,
 8   Ohio,    Rhode    Island     and North          Carolina         for their
 9   wonderful    hospitality           when      I visited          their        states
10   in the last year.
11                    I would     also like to acknowledge                         my
12   colleague,       Michael     Levine        of the Carnegie
13   Corporation,       who has played             a central          role in
14   moving    the agenda        of young         children          ahead     and of
15   course,    I want to thank Rob Reiner                         with     his
16   associate,       Ellen    Gilbert,         who understand               that
17   involvement       means     long-term         commitment.
18                    Babies'     brains,         gubernatorial
19   leadership,       you know a year ago the mention                             of each
20   in the same sentence             would       probably          have drawn
21   polite    but puzzled         stares.         And more          likely        a weak,
22   predictable       joke from David             Letterman          and Jay
23   Leno.     But today we all know that young                             children's
24   well-being       is an issue         that is here to stay.
25   Governors,       of course,        have been placed                   in the lead




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          7




 1   in crafting    a strong          response         to the new frontiers
2    of scientific       discovery.
 3                 You know,          4 million          babies       will be born
4    in the United       States       this year,           and nearly          all will
 5   arrive    full of hope and boundless                     energy.          These
 6   children    will    turn three          at the turn of the next
 7   century,    the year       2000 we hear so much                       about.    You
 8   all have a chance          and a new obligation                       as the
 9   leader    in your     states       to help assure              that every
10   newborn    completes       these vital            early years            with   a
11   life-long    thirst       for learning,             successfully
12   launched    on the road toward                a productive              future.
13                 Now,      I've been asked               to keep my remarks
14   to seven minutes.            Thank       God I'm from New York
15   because    you know we all talk very                      fast, but there
16   are four broad        themes       that      I want       to emphasize          this
17   morning    with a few examples                of the type of
18   strategies     that states           are developing              to put in
19   place    comprehensive         systems        for young          children.
20                  I'm going         to draw on my background                       in
21   public    health    research         and policy           and program
22   innovation     and currently             a senior         advisor        to four
23   national     foundations         which       focus on young
24   children's     issues.          I have visited                close     to 20
25   states     in the past year            to analyze             especially        how




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          8




 1   they are responding         to the new unprecedented
 2   opportunities     in health         and welfare             reform       to
 3   design    a quality    agenda       for young          children.
 4                 Governors       are developing                new and more
 5   expanded    partnerships.           They're        exploring         very
 6   creative    financing     mechanisms.              They're         building
 7   systems    to work    for families,            and they're           focusing
 8   on aChieving    results.
 9                 Now, who is some of the new players                               in
10   these private    partnerships?               United         Way through
11   their Success    By Six Program              which         began    several
12   years    ago in Minneapolis,            has spread           to cities
13   across    the nation.       What began           as an effort             to
14   heighten    awareness      of the importance                 of early
15   childhood    through     public       education            has now expanded
16   to a range of innovations               to support           children's
17   programs    from comprehensive              system         development          at
18   the local    level    to new license             plate       laws passed             by
19   the legislature       to support          child      care programs.
20                 They've      established           loan funds to
21   provide    capital    to child        care providers               for
22   expansion    and stabilization             of their operations                   as
23   well as to insure        investments           in serving           young
24   children.
25                 Private      foundations           in partnership                with




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         9




 1   governors       have really        stepped        up to the plate.
 2   Some states       are using        this private               support     as
 3   development       grants     like the Carnegie                  Corporation         in
 4   its ten-state       and six-city            starting           points     network
 5   to create       a comprehensive           agenda        for children.
 6                    There    are also now new and powerful
 7   billion    dollar       private      foundations              on the scene
 8   with more on the drawing                 board      with most           as a
 9   result    of the spin-off            from Blue Cross/Blue
10   Shield.     Governors        should       be turning            to these
11   foundations       for support          to further             develop     their
12   early    childhood       programs.          The corporate               community,
13   as you know,       is a growing            force      in supporting
14   efforts    to improve        outcomes         for young          children,        as
15   well,    since    they know that an educated                          and healthy
16   work    force    is the bottom           line for future
17   productivity       in a global           economy.
18                    For example,          Kaiser       Permanente           and
19   Johnson     and Johnson        are working            with      the governor
20   in New Jersey       to build         a health         insurance          system
21   that will       cover    all children           by using         private
22   funding     to match      public       dollars.           In North
23   Carolina,       the Smart      Start       Program        is supported         by
24   over    10 million       dollars       from the private                 sector.
25   And    in Florida,       a child       care business             partnership




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         10




 1   fund has been established                 at the urging              of the
 2   governor.     In Pittsburgh,              the private           sector       led by
 3   the Hinds    and Krinz        Endowment          has financed           a
 4   five-year    $60 million          early      childhood          initiative          to
 5   insure    that every       child      in Allegheny             County
 6   receives    a quality       early       childhood            education.
 7                 Now, what are some of the creative
 8   public    sector   financing          strategies             that states          are
 9   using?     While   most of the effective                      programs       I've
10   seen may focus on a targeted                   area,         they are all
11   using    ingenuity     in financing            to enhance            positive
12   outcomes    for young       children.
13                 For example,            in Rhode         Island,        they have
14   approached    HIPFA      to use their            1115 waiver           to
15   decrease    the risk of lead poisoning                        in young
16   children    by using Medicaid               funds      to replace           window
17   frames    in substandard          housing        as a preventive
18   health    measure.
19                 Rhode      island       is also using             general
20   revenue    dollars     to provide           health       insurance          to
21   state certified        family       child      care providers               and
22   their    families,     and it's obvious                to me that none of
23   these    financing     innovations            in that state would
24   have been possible           without        the governors'             support
25   of his Commissioner           of Human         Resources.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            11




 1                  As states          struggle         to increase            the
 2   supply    of child       care in an era of welfare                        reform,
 3   providing    health       care as an incentive                     to increase
 4   the number     of licensed            providers          is to my mind            an
 5   essential     first      step in improving                the quality           of
 6   care    for the millions            of infants          and toddlers            who
 7   are in family        child      care homes,            and it's an
 8   innovation     that      I believe         other       states          across    the
 9   country    should      seriously          explore.
10                  Other       states       are using          financing
11   approaches     to sustain           and expand           their programs              for
12   young    children      when     faced with           severe        budget
13   cutbacks.      In Hawaii          this year,           led by Cal Sia,
14   who received     the Private              Citizen        Award         yesterday,
15   the state     legislature           created        a new early
16   intervention     trust         fund to attract                 both public        and
17   private     sector     dollars        to help support                  their    highly
18   regarded     Healthy       Start      Program        of home visiting                and
19   family    support.         Colorado         is using           tax credits        to
20   leverage     voluntary         contributions             in their
21   enterprise     zones       for early          care and education.                    And
22   from my perspective,              this is an area that really
23   needs    much more       thought        and development.
24                  For example,             the idea of tax credits                      for
25   children's     services          could      build      on the experience




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                          517 Soutb 9tb Street, Las Vegas, Nevada   89101
                                                                                        12




 1   of a low-income          housing       tax credit             which     has been
 2   very    effective       in getting        banks       and corporations             to
 3   invest    in housing        for low income              families.          Many
 4   states    have growing         tax revenues             in this growing
 5   economy.        And coupled        with     generated           dollars,     they
 6   are using       these    expanded        resources            to build     the
 7   supply    of quality        child      care.        Minnesota,           Florida
 8   and Illinois,       to name        just a few, have done                   so.
 9                    These    states       understand             and are paying
10   attention       to important         elements         of quality          care,
11   not just child          care slots.           They      are developing
12   parent    education       materials         on how to choose               quality
13   child    care.     They are also             increasing          support     for
14   child    care resource         and referral             agencies,         that can
15   help parents       move     through        the maze           of child     care
16   options.        They are using           funds      to train providers
17   to increase       quality      of care.           Quality        counts     and
18   many    governors       understand         that     low quality           care
19   will mean       low level outcomes              for young             children.
20                    Under    gubernatorial             leadership,           a number
21   of other    state       legislature          from both          sides     of the
22   aisle    with    the support         of the governor                  are passing
23   legislation       to improve         the quality              of care to young
24   children,       for example,         Minnesota          has recently
25   passed    an early       childhood         education           omnibus     bill




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            13




 1   which    includes      among      many      important           child     care
 2   quality    supports,        an at-home           infant         care program
 3   which    will provide         monthly        stipends           for a lifetime
 4   maximum    of 12 months           for a parent             to stay home           and
 5   care    for their      baby.        I think        other        states     should
 6   look at this        type of legislation                  which         builds    on
 7   what we know        about     the healthy            development           of
 8   infants.
 9                    There     is also a growing                   movement     in
10   many,    many    states      to expand         home visiting.               In the
11   first year       of life,       based       on the positive               outcomes
12   for young       children       in reducing           child       abuse     and
13   neglect    that     the research            has demonstrated,               one of
14   the most     fascinating          new financing                partnerships           to
15   support    the move        toward       state-wide             home visiting
16   programs     is on the drawing               board       in Wisconsin.                It
17   is the first        initiative          I've heard             of that     is
18   making    the direct         link between            the importance              of
19   prevention       in the early           years      and the negative
20   outcomes     that    are eating           up state         budgets        through
21   relentless       prison      building.
22                    The governor           and the attorney                 general
23   are planning        to use one percent                 of the annual
24   budget    of the Department               of Corrections                to see home
25   visiting     state     wide.        I hope       this      is the beginning




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              14




 1   of a national       trend      and will         be adapted             by other
 2   states    across    the nation           and I wouldn't                really       be
 3   sorry    to hear    that they have upped                      the percentage.
 4                 All of these             financing          strategies           are
 5   moving    in the right         direction          and are essential                     to
 6   making    the system        work     for families,              but why do
 7   governors    need to build             a system         for families               of
 8   young    children?        To my mind,           if welfare             reform       is
 9   to work    once    and for all, we need more                          than    jobs.
10   For too long the so-called                   system       of child           and
11   family    services      has been         a non-system.                 I was
12   delighted    to hear that Sarah                 Longaker          received          the
13   Citizen    Award    for Outstanding               Work        in developing              a
14   public-private        partnership            to establish
15   comprehensive       family       resource         centers.
16                  I've just been given                   a note          that my time
17   is up.      I have more         to say.          I'm assuming            that
18   during    our discussion           period,        I can talk a little
19   bit more    about     the results-based                 accountability                  the
20   states    are putting         in place        because          even now, what
21   I've said this morning,                the few examples                 that       I've
22   covered    mask    the tremendous              amount         of activities              in
23   the states,       and my colleagues               and I think            that the
24   NGA resource       guide      on what        states       are doing           for
25   young    children     will      at least be a two-volume                       set




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             15




 1   next year.      Governors         in all the states                   would    be
 2   exceptionally      wise     to use this            time as an
 3   opportunity     to redesign           and strengthen                 systems       to
 4   support    all young       children.           Thank         you,     very much.
 5                          (Applause. )
 6                  MS. KAROLY:            Good morning,             and thank
 7   you,   Governor    Miller,        and the National                   Governors'
 8   Association     for this opportunity                   to speak         to you
 9   today.     It's part       of this morning's                  plenary        session
10   on early    childhood       development.               This morning            I
11   want   to focus my remarks              on work        underway         by myself
12   and my colleagues          at RAND on the costs                      and benefits
13   of early    childhood        intervention            programs.
14                  Our study        is motivated             by the increasing
15   body   of evidence       that demonstrates                   the importance
16   of the period       of early        childhood          development            from
17   conception     through       age three.            Much       of this
18   evidence    you've     been     exposed        to already.              The
19   research     identifies       a number         of factors             that
20   mediate    whether     this crucial            period         of childhood
21   development       is positive         or negative             with     both
22   biological     and environmental               stressors             potentially
23   compromising       a child's        healthy        development.
24                  With    funding        from the California
25   Wellness     Foundation,        an interdisciplinary                    team of




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              16




 1   RAND    staff    have been       examining          evidence           regarding
 2   the benefits       and costs         of targeted              early
 3   intervention       programs,         those      designed         to address
 4   such stressors        as impaired           emotional           relationships,
 5   reduce    levels    of cognitive            stimulation               or
 6   inadequate       resources       to support           basic      needs.
 7                    Our aim is to provide                  an objective
 8   assessment       of the potential             benefits          of early
 9   childhood       intervention         to children,              to their
10   parents    and to society            at large.           Our work            is also
11   providing       analytical       support        to the I Am Your                   Child
12   Early    -- I Am Your Child              Early      Childhood              Public
13   Engagement       Campaign      led by Rob Reiner                 and others.
14                    I want     to note        that my remarks                  this
15   morning    are based       on interim           findings         to date           and
16   we will be releasing             a full study by the end of the
17   year.     A one-page        handout        also at your plates
18   summarizes       the five key points                of my remarks              this
19   morning.
20                    First,     I want       to highlight            that early
21   intervention       programs        do yield         significant              benefits
22   for children       and their         families.            Given        the
23   importance       of the first          three years             of life,        a
24   number    of early      intervention            programs         have been
25   designed     and tested,         programs         which        aim to overcome




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          17




 1   many of these biological                or environmental                stressors
 2   that otherwise        might      compromise           a child's         healthy
 3   development.        Our research            has identified              roughly
4    two dozen    programs,         most of them implemented                        in
 5   small    scale experimental              studies.
 6                  The programs            do differ          in the number             of
 7   ways    including     their      objectives           in designs,          such as
 8   whether    they aim to strengthen                   the parent-child
 9   relationship,       to improve           child      health       and nutrition
10   or to enhance       school       readiness.             Some of the
11   programs    intervene        soon before            or after          a child's
12   birth,    other programs           begin      later       in infancy           or in
13   early    childhood      up to about           age three.              All of the
14   programs    targeted       groups        of disadvantaged                children
15   using    various    criteria         to identify              children     most at
16   risk,    such as the family's                income       or socioeconomic
17   status    or the child's           health       or cognitive
18   development.        Many of these programs                      have followed
19   children    and their         families        long enough              to measure
20   both    short-term      and long-term             benefits            of the
21   programs.
22                  But despite           the diversity              of programs
23   that exist     and have been             implemented            and studied,              a
24   consistent     finding        does emerge.              Well-targeted
25   interventions        can produce           significant           benefits           for




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Streett Las Vegas, Nevada   89101
                                                                                               18




 1   the    child    and     the parents            in several           key     domains.
 2   These     include       gains      and     emotional          or cognitive
 3   development        for the         child       often      measured,          for
 4   example,       by improvements               in the       child's          IQ, or even
 5   improvements          in the parent-child                   relationship.
 6                     Substantial             improvements             are    also
 7   measured       in educational              processes          and    outcomes         for
 8   both    children        and parents            such     as improved             and
 9   higher     levels       of educational              attainment            and
10   reductions        in the use           of special           education.             These
11   studies     also      measure        gains       in economic
12   self-sufficiency,               initially          for the parent               and   then
13   later     for the child.               For example,               through       greater
14   labor     force    participation               and higher           income,
15   through     lower       welfare        participation               and     reduced
16   levels     of criminal            activity.
17                     And     finally,         these      studies        measure
18   improvements          in health           outcomes        such      as reductions
19   in child       abuse,       gains      in child         nutrition,
20   improvements          in maternal            reproductive            health        and
21   reductions        in maternal             substance         abuse.
22                     Typically,           these       benefits         that     I'm
23   talking     about       are measured             in multiple              studies,       and
24   the magnitudes            are     large      and    statistically
25   significant         despite         the    fact     that      many        of these




                 LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           19




 1   studies    have    relatively          small populations                 that    they
 2   examine.       For example,          in one study              children        who
 3   participated       in the intervention                  experienced            a 48
 4   percent    reduction        in the use of special                      education
 5   by age 15 compared           with      children         who did not
 6   participate       in the program.
 7                   In another         example,         mothers           of the
 8   children     in the intervention                program         experienced           a
 9   40 percent      reduction        in welfare           utilization             over    15
10   years   compared      to mothers          who did not participate.
11                   Now for some,            these      types       of benefits
12   that    I've just     listed       are enough           to justify            early
13   intervention      programs         and to implement                   these
14   programs    on a larger          scale.         But our analysis                of
15   two specific       intervention           programs            shows     that
16   carefully      targeted       early      intervention            programs        can
17   also be justified           in economic           terms.         One way of
18   doing   that    is to demonstrate               that      the savings           to
19   government      exceed      the costs         of the programs
20   themselves.
21                   Taxpayers        reap the benefits                    of these
22   programs     in terms       of higher          taxes      paid        by program
23   participants       because       they work          more       and they earn
24   more.     They benefit          from reduced            social         welfare
25   costs    as participation            in welfare           programs        and




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                   20




 1   other     social    safety       net programs             decline,            and
 2   taxpayers     benefit         from      savings        in criminal             justice
 3   expenditures        due     to reduced           criminal         activities.
 4   Let me give        you    a couple         of examples.
 5                   In one program,                we analyzed              implemented
 6   in Elmira,      New      York.       It involved            home        visits          by
 7   specially     trained         nurses       to first-time                mothers
 8   during     their    pregnancies            and    for two years                after
 9   birth.
10                   Children          and    their       families           have    been
11   followed     for    15 years         since       the    start      of the
12   program.      We estimated              that     this     program            would
13   result     in a net       savings        to government             of
14   approximately         $20,000        per     mother-child               pair.           The
15   savings,     in this        case,       to government             is over           4
16   times     the program         costs.         Moreover           since        many       of
17   the   savings      to government             arise      from      changes           in the
18   parents'     behavior         such      as reductions             in mothers'
19   welfare     utilization,           cumulative           savings          to
20   government      exceeded          costs      after      only      three        years.
21   In other     words,       a three-year            pay     back     period.
22                   In other          cases,       the     savings          to
23   government      can      take     longer       to accumulate,
24   particularly        in programs            that      generate           improved
25   outcomes     in adulthood            for children,               since        the




                LAURIE WEBB & ASSOCIATES                         (702) 386-9322
                           517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            21




 1   investment    occur      early       on, the benefits                  aren't
 2   accrued    until    the children            reach       adulthood.                As an
 3   example,    here we looked             at the Perry             Preschool
 4   program    which    was implemented               in Ypsilanti,
 5   Michigan,    which      provided        preschool             classes        to
 6   three-    and four-year-old              children.             Children           in
 7   this study have been             followed         28 years,            long enough
 8   to observe    significant            changes        in their           outcomes
 9   relative    to children          who did not participate                          in the
10   program.
11                 In this intervention,                     the savings               to
12   government    also exceeded              costs      by a factor              of about
13   two to one, and most of the savings                            came from gains
14   in the children's           outcomes        once      they reached
15   adulthood,    for example,             due to greater                 work    effort,
16   lower welfare       utilization            and reduced           criminal
17   activity.     Improvements             in parents'             outcomes           in
18   this case,    if there were              any, were            not measured             in
19   the study.     Consequently,               this program               does not
20   reach    the break-even          point      until       about         20 years.
21                 While       our analysis            also reveals               another
22   key implication         of this body of research;                        namely,
23   that the savings          to government             are larger           when
24   higher    risk families          are served.              In other           words,
25   those    families     that can most benefit                     from targeted




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            22




 1   intervention     programs.          NOw, the absence                  of
 2   government     savings     for some program                 participants               is
 3   not necessarily        the fault of the program
 4   themselves,     but rather         to whom the program                     is
 5   offered.
 6                  Generally       target       interventions              are
 7   designed    to help children            and families                that need
 8   assistance.      The lower risk families                      do not need as
 9   much help,     so the program           doesn't         accomplish              as
10   much.     For example,       in the Elmira              study        that       I
11   mentioned,     without     intervention,              welfare
12   utilization     was three        times      higher          among
13   higher-risk     families       compared         to lower-risk
14   families.      Thus,    for lower-risk              families          since
15   welfare    utilization       was already            low, there was much
16   less room for the program                to have an impact.
17                  Well,    our analysis            of these            studies          also
18   confirms     that there      is no single             strategy         for
19   overcoming     the types of stressors                   that may
20   compromise     a child's       healthy        development,             and as
21   you will hear this morning,                  I've already             heard          and
22   will hear,     there are many numerous                      examples        of
23   programs     that are working            on these           types     of
24   issues.
25                  And the types           of models            that we examine




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             23




 1   include    various     factors        such as the methods                    used       to
 2   identify    children       who will        most      benefit          from target
 3   intervention,       whether       the intervention                   is focusing
 4   on the child,       the child's          parents        or both,            what
 5   stage    of the child's         development            does     the program
 6   intervention       occur    and what         are the types              and
 7   nature    of the services           provided         to children             and
 8   their    families.
 9                  Compared       to the two programs                     I've just
10   talked    about,    other     early       intervention               programs,
11   many    of which    are currently            underway,          may be more
12   or less successful          in producing             benefits          to
13   participants,       to the government                and to the rest                   of
14   society,    depending       upon      the population                 they    serve,
15   the nature     of the services             they provide               and the
16   types    of behaviors       or outcomes            they are trying                 to
17   effect.
18                  I want      to conclude           by noting            that    I
19   think    that there      is more        work     to be done both                  in
20   implementing       these programs            and understanding                    the
21   types    of benefits       that     they produce.               So there           are
22   a number    of questions          that      I think          still     remain          to
23   be addressed       by researchers            who are implementing
24   and evaluating       early      childhood          intervention
25   programs.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                    24




 1                    First,        there      is considerable                uncertainty
 2   regarding       the ability           to replicate               the results              of
 3   some of these          smaller-scale             studies          that     I've
 4   mentioned.        Currently,            a number         of larger-scale
 5   replications       are underway               that should           help
 6   strengthen       our understanding                 of the costs                and the
 7   benefits     of these programs                 when      they're          implemented
 8   on a larger       scale.
 9                    Secondly,          while      we know           that higher              risk
10   children     are most          likely       to benefit,            our
11   understanding          of how best            to identify           those
12   children,       the children            at risk,         is far from
13   complete.
14                    Third,        additional          research          is needed             to
15   help    identify       the optimal            mix of services                  to
16   provide    either        to parents           or children,               and
17   depending       upon     the stage          of the child's                development
18   at the time of the intervention.                             Now, many              of
19   these    issues    can be addressed                  through        a coordinated
20   comprehensive          research         program        that       includes
21   continued       follow-up         of children            and families                in
22   past    interventions            as well        as new studies,                 and I
23   think    it's    important          that research                activities              are
24   integrated       into new efforts                 to replicate             and expand
25   existing     programs          or to implement               new program




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        25




 1   designs.
 2                  In this way, we can further                         optimize       the
 3   investments     we make     in children            and their          families
 4   in these    crucial    early      years      of life.              Thank    you,
 5   very much.
 6                         (Applause.)
 7                  MR. PRICE:         Let me assure              everyone           with
 8   our late start,       I'm keenly          aware      of the old Will
 9   Rogers's    line that the first              ten minutes             of any
10   presentation     are to inform            the audience,              the rest
11   is to entertain       the speaker.
12                  But that's       appropriate            having        watched
13   Siegfreid     and Roy last night             disappear             an elephant
14   between    Judy and Lynn.           Judy's       use of my successes
15   and Lynn's     use of my evidence,               much of my comments
16   have disappeared       anyway.
17                  So let me begin            by saying          having        read
18   the transcript     of your        last plenary              session        on
19   early   childhood,     I am keenly           aware         that     I'm not
20   just preaching     to the choir.               I think         in this
21   situation,     I'm teaching         catechism          to the priest,
22   but there     is virtue      in the priest's                patience        with
23   the parishioner       because       only by his attentive
24   silence    can he learn       the steps          that must be taken
25   to afford     salvation      to his flock.




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        26




 1                    If any organization               can lay claim            to the
 2   legacy    of acting      on behalf         of young         children,        it is
 3   the National       Governors'         Association.             Before       young
 4   children    became      the issue du jour               in Washington             and
 5   in the media,       visionary         governors         such as Dick
 6   Celeste    and Booth       Gardner        were preparing             their
 7   successors      to act on behalf             of children.             It is
 8   humbling    to be asked          to playa,         role     in assisting
 9   you in fulfilling          your     legacy.          It is in the
10   context    of juxtaposing           the temporary            nature     of
11   roles    with   the permanence            of a legacy          that    I make
12   my comments       today.
13                   To quote Admiral             Stockdale's            great
14   opening    line    in the 1992 vice-presidential                       debate,
15   "Who am I and why am I here?"                      I am a white,
16   middle-aged,       middle-class           bank president             raised       by
17   a career    military       officer        and a stay-at-home                mom
18   whose    children     have never          seen the inside             of a
19   child    care center.          When     Governor        Romer       appointed
20   me to my position          as chairman           of Colorado's
21   Business     Commission        on Child        Care Financing,              Sally
22   Vogler,    who's    his chief         aide on children's               issues,
23   and is here       today,     and she reviewed               my resume        and
24   she said,       This guy is the Antichrist                    of child
25   care.




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada 89101
                                                                                          27




 1                  The credentials               of the other             plenary
 2   presenters     on early        childhood          both        in February       and
 3   today    are clear.        Dr. Bruce          Perry       got you in touch
 4   with    the science       of the brain.               Dr. Jones         and Lynn
 5   Karoly    have gotten        you in touch with                  the math       and
 6   sociology     of child       care.         Rob Reiner,           through       his
 7   extraordinary       television           special        and his gifts           as a
 8   communicator       has gotten          you     in touch         with    your
 9   softer,    more    emotional         side.        And     I am here with
10   apologies     to Governors           Whitman        and Governor           Shaheen
11   to get you in touch            with your masculine                    side.     And
12   for this role       I am uniquely             qualified.              According
13   to my wife     and the female              members        of my management
14   team,    I embody     the four major              male        behavioral
15   traits:      Ignorance,        arrogance,           selfishness          and a
16   willingness       to make      decisions          without        permission.
17                  So let's begin              with     ignorance.           If
18   you're    over 40, please            raise      your      hand,       and I know
19   the governors       who are under             40 by the way,             so your
20   constituents       will     know.        Now,     I need you to raise
21   them a little       bit higher.              Okay.        If your mother
22   worked    before    you     -- I need          them up again.              Sorry.
23   If your mother        worked       before       you were          the age of
24   six,    full-time     in the work            force,       lower your          hand.
25   If your mother        worked       full-time,           Governor        Allen,




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              28




 1   before    you were      the age of 6, lower your                        hand.       You
 2   can lower your hands.                We had about             ten maybe,            15
 3   percent    lower    their      hands.
 4                    I asked      that question             to a group            of high
 5   school    students      in San Diego            and 8 out of 10
 6   lowered    their hands.            And     it was at that point                     in
 7   time that    I understood            that the neighborhood                     I saw
 8   in the rear-view          mirror       as I left to work                 each
 9   morning    was the one I was born                   into in 1956.               Not
10   the ones my children             were being           raised          in in 1996.
11   And me, as a white,            middle-class             male was making
12   decisions    predicated          on my own childhood                    and not
13   the reality      of the world            as it is today.                 So I want
14   you to think       about      this demographic                since      it is the
15   anchor    to the rhetoric            on child         care.           It is anchor
16   to your    actions      on child         care.
17                    In 1950,       14 percent          of mothers           with
18   young    children     were      in the work           force.          Today     that
19   number    is almost       60 percent.             31 percent            of all
20   births    are out of wedlock               today.         40 percent           of
21   every    child    in this country,              40 percent            of children
22   wake    up every    morning        in a home without                   a father.
23                    The thing       that      isn't      different          today,          to
24   think    of Bruce     Perry's        comments         at your          last
25   plenary,    is the way that babies'                     brains         develop.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                               29




 1   The thing     that     is different            is the way that babies
 2   are raised.        When      the business            commission           studied
 3   the quality     of the system              that accommodates                   these
4    children,     we discovered             that     20 percent             of children
 5   were    in settings        deemed       developmentally                 positive.
 6   60 percent     were      in neutral          settings,           and 20 percent
 7   of children     are in child              care     settings            deemed
 8   developmentally          negative         or unsafe.
 9                  That meant           that     50 percent           of all of our
10   children     are arriving           at kindergarten               with     a
11   suspect    background         and a suspect              preparation            to
12   learn.     So here you have               it, we have had the most
13   profound     change      demographically               in the history                of
14   our union.      Not education,               not employment,               not
15   government     and not even             the family             has been
16   reengineered       to accommodate              the effects              of maternal
17   work    force participation.                  So this          is where
18   arrogance     takes      over.        Here we were,              25 business
19   people    intent     on reengineering                this       indusiry.            We
20   weren't     overconfident.              As a matter             of fact, we
21   added    two meetings          to our scheduled                 four to get           it
22   done.     But here's         what we discovered.
23                  The traditional                reengineering              tools       were
24   not available        in child         care.        There        is no middle
25   management.        Profits        are 2 percent                or less.         The




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           30




 1   average    wage hovered       slightly         over $6 per hour.
 2   The child care network            as structured              was not a
 3   system but a set of ad hoc initiatives                             with
 4   inconsistent    support       and erratic            quality         that was
 5   unprepared    to accommodate            children           in compensated
 6   care let alone absorb           children         coming       out of
 7   welfare.
 8                 We couldn't         find any accurate                  data.
 9   Almost    all the reports         we got we triangulated
10   because    we didn't     trust the data that was out
11   there.     We couldn't      find anything              on the economics
12   so we commissioned        a study by the University                         of
13   Colorado    to ask what       it costs to deliver                    quality
14   child care.     And here's          what they told us.                     Quality
15   care costs     $7900 a year to deliver.                      Parents        in
16   Colorado    could afford        to pay $4800 per year,
17   Colorado's    reimbursement           rate for subsidized                   care
18   was less than $4000 per year at the time.                                 This
19   wasn't    an industry.        It was an economic                    disaster.
20                 There    is too little money                   in the system
21   today to support       the quality           that is necessary                   to
22   deliver    children    to kindergarten               ready to learn.
23   There    are but four sources             to pay for the
24   enhancements     necessary        to build         the quality.              You
25   have parents.      At this point poor parents                         are




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             31




 1   tapped    out and affluent           parents        have to be taught
2    the benefits       of quality         for their         children.
 3                  Philanthropy:             Currently,            philanthropy
4    pays one percent        of the child             care budget.                It
 5   cannot    afford    to make       a sustained           long-term
 6   commitment     and expect         to have our 4000 or $3000                         gap
 7   closed.
 8                  Employers,         I ask you to consider                      this
 9   today:     You are the CEO, by and large,                            with    the
10   exception    of possibly          of Governor           Locke,         Washington
11   who has Boeing,        but the rest of you virtually                              are
12   the CEOs of the largest               employment             group     in your
13   state,    and as a CEO of a large group                        of employees,
14   I'm here to tell you that absent                       systemic         change,
15   employers     cannot     and will not support                   closing           the
16   gap alone.      And so that leads us to government.
17                  Fortunately,           in business             and electoral
18   politics,     progress       is made       at the intersection                     of
19   selfishness     and altruism.              We would           all like to see
20   our own children         get the best possible                       start    in
21   life.     Dr. Perry's       brain       research         shows us that the
22   failure     to provide       a rich stimulating                 and stable
23   environment     in the early            years      of life creates
24   incalculable       and irretrievable               losses        later       on.
25                  The studies          that Lynn Karoly                  summarized




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             32




 1   today    demonstrate       that there          are calculable                and
 2   retrievable       monetary      gains      to be had by investing,
 3   not maintaining,         but investing             in quality              child
 4   care    for at risk children.
 5                  We now understand               the cost efficiency                      of
 6   investing     in early      childhood          education,             or
 7   educare.      No other       investment          of welfare            dollars
 8   has such a clear         return       in a finite             period        of
 9   time.     No other     investment          has such a clear                  impact
10   on breaking       the cycle       of poverty.                No investment
11   should    be made without           a comprehensive                  vision       and
12   no expenditure       will be supported                 by the public
13   without    a clearly       defined        outcome        and source              of
14   payment.
15                  Let me give you a one-sentence                              vision
16   that    I hope we can expand              on later           in the question
17   period    of this educare           system,        and a one-paragraph
18   explanation       on how you,         as a governor,                 might
19   consider    paying     for it.          We need        a quality            system
20   that    is fully    funded,       child-centered,               meaning           the
21   money    follows    the child,          parentally            controlled,
22   meaning    that    it has a multimodal-delivery                            system
23   that the parents         can buy into and appropriately
24   monitor.
25                  As governor,           you are the single                    largest




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           33




 1   payor    for child      care     services         in your        state,
2    particularly     with      the new block             granting           and the
 3   way the entitlements             are passed           out.       If we look at
4    three    programs     nationally          that affect            poor     kids,       we
 5   have    the beginnings         of full        funding.           You have           the
 6   existing    child     care entitlement                of $1.9 billion                in
 7   the current'budget           with      approximately             another
 8   billion    dollars      in initiative             monies.             You have       the
 9   option    of transferring            at least         that much          or more
10   out of TANF.        And Governor            Romer       is not here           today
11   so I can say this with               impunity,          and just to be
12   mischievous      I am not an elected                  official.           I'm a
13   private    citizen.        You have         $3.6 billion               in Head
14   Start.
15                   I think      Governors          Engler,         Governor        Romer
16   and Governor      Voinovich          have     shown       courage        in
17   opening    the dialogue          as to what           role Head          Start       can
18   playas     the foundation            for a fully              functioning
19   child    care   system      for the poor.               As a business
20   person,    it is only         logical        that the great              resources
21   of this wonderful           program,        both      financially             and
22   experientially        be put to use in the solution                            of a
23   child    care dilemma         of poor        children          in general           and
24   the problems        of financially             strapped         governors.
25   You can lead to a system                 as governor            that




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           34




 1   accommodates       the poor.           Build      that        system     and the
 2   rest of America         will     follow.
 3                  And this where              I come to the question
 4   about    making    decisions.            In my life,            I answer        to my
 5   board,    my Lord and my wife,                not necessarily              in that
 6   order.     You governors           have a far larger                  public.
 7   Anthony    King    in the Atlantic              Monthly         of January           of
 8   this year,     he's an Englishman,                  wrote       a brilliant
 9   article    in my opinion           on American            politics.            His
10   central    thesis     was that American                 politicians            are
11   seen as vacillating            and cautious,              when        in reality,
12   they are asked        to make        the most         difficult          and
13   courageous     decisions         of any politicians                    in any of
14   the western       developed        democracies.
15                  Ever     since      I was asked            to make        this
16   presentation,       I have       agonized         over        the propriety
17   and the tone of any call to action                            I might     make.
                                                                                     +

18   The task weighed          so heavily          upon      me that         I left on
19   vacation.      My wife        and I, my family                 took a visit           to
20   France.      It was in a small village                        in France        that
21   this angst     was laid to rest,                laid to rest
22   ironically     in a graveyard.                My wife          and I had
23   stopped    to visit       a small        country        museum         dedicated
24   to the French       Resistance           in general            and a small
25   action    in that area.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         35




 1                 My father's          proudest         moment          was to be on
 2   the Champs-Elysees         for VE day 1945 and this was our
 3   family's    way of honoring            my father.             The entry
 4   brought    us past     the tombs        of 220 French                boys.     Boys
 5   I say because     they had all been between                          the ages of
 6   16 and 22 when        they had died.              Their       job had been
 7   to hold the plateau          of Glieres           in the Alps,           where
 8   the allies     were dropping           arms to be smuggled                   down
 9   to the French     Resistance.             They were           surrounded           by
10   the Italians     and Nazis         and infiltrated                  by the
11   Milice,    the French       collaborators.                  When     the Germans
12   had had enough,        they attacked            in sufficient            numbers
13   to leave    200 dead on the plateau.
14                  When    the order         to retreat           was given,
15   there were but 27 French               boys     left.         Seven     escaped
16   but 20 were killed          in the attempt.                  20 bodies        were
17   left stacked     like cord wood              in the village             square
18   of the occupied        town of Thone            at the base of the
19   plateau.      Given    the times         and the fear,               there was
20   uncertainty     as to what         the townspeople                  should    do
21   with   the bodies.        Finally,         the mayor          was asked        what
22   to do.     And carefully         and thoughtfully                   he answered,
23   "These are our children,               they shall be accorded
24   all the dignity        that France           has to offer."
25                  You are both          the CEO of the largest




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           36




 1   group    of employee's          in your       state       and the single
 2   largest    payor    for child          care     services.              My role
 3   today    has been       to provide         you some           thoughts        on how
 4   to deal with your dilemma.                    Your      legacy         will be
 5   your    answer    to what       shall we do for these
 6   children.
 7                            (Applause.)
 8                    GOVERNOR       MILLER:         I want         to thank        all
 9   three panelists          for those         enlightening               and
10   challenging       remarks,       and we're          going       to have        some
11   dialogue    with    the governors             at the conclusion                 of
12   our next    speaker's        presentation.                I know        that    in my
13   own budget       recently       completed,          we just approved                 $8
14   million    to fund, we characterize                     as a
15   family-to-family          initiative,           and it included                such
16   things    as expansion          of Head       Start,          classroom        on
17   wheels.     We call them cows or busses                         here.         They go
18   in to provide       early       childhood         precare         centers       for
19   education     for some of the communities                         that need
20   them,    family    resource        centers        in individual
21   communities       and most       importantly            home visitation
22   after    birth.
23                    Now,    that     should      be motherhood                 and apple
24   pie and yet it was the last thing                         that was approved
25   by our legislature.               It was the most               difficult




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                 37




 1   battle    that    I had in this session,                         and I kept
 2   wanting    to beat my head against                       the wall          saying,          "I
 3   think    I understand           this.        Why does nobody                else?"
 4   And I think       that's        the challenge              that's        ahead     of
 5   us.     And because         of panelists             and advocates               such as
 6   yourself,     that's        a change         we're       going      to be able to
 7   make.
 8                    And     I think        one of the national,                     if not
 9   the national       leader         on this        issue       is here again
10   with us this morning.                   It's a great              pleasure        to
11   welcome    back Rob Reiner.                  Rob is the chairman                      and
12   founder    of the I Am Your Child                      Public       Engagement
13   Campaign.        He's a director,                a producer,              an actor
14   and a principal            and cofounder             of Castle            Rock
15   Entertainment.
16                    But recently             he has used his talents                       as
17   a great     communicator            to help raise public                       awareness
18   about    the importance             of investing             in our children,
19   and he certainly             raised       our awareness             at our winter
20   meeting     in Washington.                Now he's moved                 from a
21   public    engagement           campaign,         not really              moved    from
22   it, that's       still part of the agenda                         I know,        to
23   creating     a foundation             that is dedicated                   to
24   educating     people         about      how they can invest                     in a
25   child's     early years.              We appreciate               the fact that




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     1   you take you time to be back here again with us
     2   again    today,   Rob Reiner.
     3                          (Applause. )
     4                  MR. REINER:           Thank      you.         First        of all, I
     5   want to say I resent           Doug Price           saying          that I am
     6   the feminine,      emotional         side of this issue,                    and
     7   that he's the masculine.                Let's       get in the ring
     8   right now, two out of three                 falls,          you know,        we got
     9   the judges     here.
    10                  I want to thank Governor                      Miller        and
    11   Governor    Voinovich       for having          me here,            and
    12   particularly      Governor       Miller.          What you just said,
    13   it is absolutely        true.        I mean,        Doug Price             talked
    14   about    the fact that we're,             you know, preaching                     to
    15   the converted      and the choir            and all of that, but
    16   when    the rubber     hits the road, you know,                       a lot of
    17   people    don't understand           this issue.              I mean,        there
    18   are people     here in this room who understand                             it
    19   intimately     and have been           involved         in it for many,
    20   many years.       There     are others          who are getting                  up to
    21   speed and understanding              it in recent             years.         But
    22   the fact of the matter             is, it's not nationally
    23   known.     We do not nationally               understand             this issue
    24   in our bones.        And when we do, when we do
    25   understand     that,    this      -- we won't           be having           these




                    LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                           517 South 9th Street, Las Vegas, Nevada   89101
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     1   discussions.           This will be a matter                    of course.
     2                    We've       all agreed         that we must              educate
     3   children    K through          12.       That's       all a given.               We've
    4    all agreed       to that.          Nobody       disputes          that.         We have
     5   to get to a point             where      nobody       disputes           that what
     6   happens    to a child          in the first             three      years        and
     7   what    happens       before     he enters          kindergarten            is as
     8   and more    critical          than what         happens         to him
     9   K through       12.     Science        has shown          us very,         very
    10   clearly.        We heard        from Dr. Perry             but it bears
    11   repeating       that what        happens        to a child              in the first
    12   three    years    of his life            is the most            critical         time
    13   period    in a person's            life and in terms                    of how that
    14   child    will    function        later       on in school               and later       on
    15   as an adult.           Whether       or not he will               be a toxic          or
    16   nontoxic    member        of society           is directly              connected       to
    17   what    happens       in his first           three years.                Make    no
    18   mistake    about       it.
    19                    We want        to talk about             crime.          We want       to
    20   talk about       teen pregnancy.                We want          to talk about
    21   drug    abuse,    child       abuse,       welfare        dependency,
    22   homelessness,          success       in school          and success             later
    23   on in life,       how you relate               to the opposite              sex.        We
    24   can look to the first-year                     bonding          and attachment.
    25   It is the most          critical         thing      that happens            to every




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                               517 South 9th Street, Las Vegas, Nevada   89101
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 1   single   person   in this room.               How we bond and attach
 2   to our mothers      or fathers          and our primary                   care
 3   givers   is the one piece            of foundation             that will
 4   take us through       the rest of our life.                         It is the
 5   glue of society.          It is how we relate                  to the
 6   opposite    sex and make         successful          marriages             work.
 7   It is how we successfully               work with our co-workers
 8   and with our friends.
 9                 We're     all in this room because                          the
10   National    Governors'       Association            convened          a
11   meeting.     You all took an oath of office                           and made a
12   vow to help your        states.         That's        because        you've        got
13   what you needed       to get in your              first three years.
14   Maybe    not as much as you would                 like.        We all can
15   talk about,    you know, what we did get and what we
16   didn't    get, but you got enough.                    And we must make
17   sure that every       child gets enough.                    Because         that's
18   the only way we're         going       to solve         any problems.
19                 Everybody        in this room has been trying
20   to solve problems         since      the beginning             they went
21   into public    affairs.          Lawton       Chiles,         a good        friend,
22   has devoted    his entire          state of the state                     address
23   to early    childhood       development           because           for 45 years
24   he's been a public          servant        and has been wrestling
25   with these    issues      his whole          life,      and after           he




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                               41




 1   studied    this and really              understood             it, he realized
 2   that all roads         lead to Rome.               It all goes back                  to
 3   the first     three      years.         Everything             that we do goes
4    back   to the first         three       years      and Lawton            Chiles
 5   understands       that     in his bones.               So he fought.                 And
 6   Governor    Miller       fought.         But this         shouldn't            have       to
 7   be a fight.
 8                  You know,          why     is it a fight                that we have
 9   to take care of our children                     in the first             three
10   years?     This    is not a fight.                 This        is something           we
11   must   do as a matter           of course.             Howard          Dean    knows
12   this   in his bones.            George       Voinovich           knows        this    in
13   his bones.        Christy       Whitman        is now understanding
14   this   in her bones,          and there          are a number             of others
15   that   I'm not as intimately                  involved          with     as these
16   governors     that     I've mentioned.                 Jim Hunt          at the end
17   of the table       understands            this     in his bones.                You're
18   trying     to solve      problems.           That's        what        you're
19   trying     to do, and this            is the way to do it.
20                  Now having           said that and preached                      to the
21   converted,     hopefully          I'm here         as a cheerleader                  and
22   my job is to keep public                  awareness            up.      We have       to
23   keep   that up to make            your      jobs easier.                I want       to
24   make your     jobs easier.              And that's             what     I'm doing
25   and that's     why     I've taken           this position,               and I'm in




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
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 1   it for the long haul.               Let's      just talk a little                bit
 2   about    where    we came,       where     we are and where               we're
 3   going.     Before,       in February          I addressed            you and we
 4   talked    about    what we were going                to do and the I Am
 5   Your    Child    Campaign       about     raising        public
 6   awareness.
 7                    And since       that time,          we had a White
 8   House    conference       that we were           in part        responsible
 9   for organizing.           We had Newsweek              magazine         put out
10   four million       issues,       special       issues        that got out to
11   people    around    the country,            and we had a television
12   show that reached          10 million          people.          Which     is
13   going    to be rerun August             17 and hopefully                reach    a
14   lot more people.
15                    Well,    that's       a good bang           that we've
16   given    this    issue.        We've    put it front            and center
17   for the first       time.        People       in early         childhood        have
18   been wrestling          with    this    for years,           15, 20, 30, for
19   Barry    press    in /STOPB       his whole          life,       50 years,       and
20   talk to Bea Romer,             Governor       Romer's        not here but
21   Bea Romer       said,    "You came to --               the cavalry         came
22   to the rescue       when you came,"              because         this
23   information       about    early       childhood         and about        brain
24   development       has been       around       for 15 years.              It's not
25   new.     It's been       around     15 years.            We're       talking




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
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 1   about   new research            in brain         development.              Well,
 2   it's been       around      a long time but it hasn't                       been
 3   disseminated       to the public.                  That was my job, and
 4   hopefully       that will make your                  job easier.
 5                    So we've         been      seen.        It's out there.
 6   The newspapers           have     covered        it.       It's allover            the
 7   media    now and everybody                understands             it.     Our web
 8   site alone       got over         -- what        is it, a hundred
 9   thousand       hits,     something          like a hundred               thousand
10   hits    just    in, you know,             in the last couple                of
11   months.        And we've        created        some materials              to go
12   with    the show,        we had a community                 mobilization
13   brochure       and a parenting              brochure         that has been
14   distributed       in the tens of thousands.
15                    We've       just now finished                   this video      The
16   First    Years    Last       Forever,         and I urge           you to look at
17   it.     It's the best            thing      that has come out of our
18   campaign       by a long shot.                It's 28 minutes              and it
19   talks    about    the impact            of brain         development         and how
20   you care       for your        child      in the first             three years,
21   and it will be distributed                      around       the world       in the
22   millions,       in the many millions.
23                    Initially,           we had a distribution                  plan
24   for all our materials                 because        we have         a
25   relationship       with        about      130 national             organizations,




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
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 1   the American     Academy         of Pediatrics,               the Library
 2   Association,     the National              Governors'           Association,
 3   the list goes on for quite                  a while,          and that was
 4   going    to be our main          source       of distribution.                  Well,
 5   when we finished          this video,           Johnson         and Johnson,
 6   who funded     it, looked          at it and said,                "My God.
 7   This is an incredible              tool we have here."                    And
 8   they've    decided      to distribute             it allover             the world
 9   in every    country       that Johnson            and Johnson            does
10   business.
11                  We just recently               got a call from the
12   Chinese    asking           the Chinese           television            asking       to
13   play    the video     on Chinese           television           which     we're
14   going    to agree     to do.         In India,          they wanted            our
15   materials.      In Australia,              New Zealand           want     the
16   materials.      So it's going              to penetrate               around    the
17   world.     The Department            of Defense           called        us,
18   William    Cohen,     and asked us because                     they had seen
19   it, if we could replicate                  the video           in the tens of
20   thousands    for the military                and military              members       who
21   have young     children.           We are going               to do that.
22                  We had a meeting                recently         in New York
23   City, Jim from Smart             Start.         We had Karen             Ponder
24   came to visit,        and we also had Mildred                         Winter    who
25   would    help us start          the Parents           As Teachers




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   program,    you know,        in Missouri,             Governor          Carnahan
 2   knows    about    and we all know about                   on it.         It's a
 3   nationwide       program.        We got together                with them,
 4   some early       childhood       experts,         The Healthy            Families
 5   America    people     and we showed             them the video.                 They
 6   went crazy.        The Healthy           Families         people        said,       "We
 7   need this video         for everyone              of our case workers
 8   and everyone        of the clients."
 9                    Mildred     Winter        mentioned           that every
10   person    who becomes        part of the Parents                      As Teachers
11   Program    needs    to see the video.                   Karen         mentioned,
12   "Wouldn't     it be nice         if every         single        mother        who
13   just gave birth         left the hospital                 with        this
14   video?"      It's not an expensive                  proposition.               As we
15   said,    it's a buck        75 to replicate,                  and you know,           we
16   did the research.             I think        there's          about     a hundred
17   thousand    new births         a year        in North          Carolina.            You
18   can find out how many,               there      must be money                in the
19   coffers    to disseminate            this.        Whether        there        is or
20   not, this is going            to be out to millions                     and
21   millions     of people.
22                    Johnson      and Johnson's             agreed         to put       it
23   in Wal-Marts       and Kmarts          and so on.              We're     working
24   with Golden       Books     and we're         going       to have a parent
25   book,    a book written          by Dr. Bruce             Perry        and along




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   with    that,    there will        be a companion               six videos
 2   that will be made           in more detail              that this
 3   parenting       video,    much more          detail,          that could        also
 4   be used.        And that we're           talking        to McDonald's.
 5   We're    talking    to MatteI.             MatteI       has given         us some
 6   money    for child       care,     a comprehensive                child       care
 7   brochure    which     is going         to be released                 at the White
 8   House    child    care conference              in October.
 9                    And we're       working        closely         with     Rosie
10   O'Donnell,       we've    gotten       her on board             and that's           a
11   very big thing.           That     is a very,           very      big thing
12   because    she has the bully               pulpit,        and she has the
13   constituency.         And she is dedicated                     and passionate
14   in terms     of child       care.        And so she is going                   to be
15   helpful    to us in launching                our child          care brochure
16   and also a child          care video           that we're             going    to
17   do.
18                    So a lot of things               are still            happening,
19   and we've       got to keep        the drum beat going.                       And
20   we're    going    to continue          to do that, but you should
21   know that we have penetrated.                       We've       penetrated           in
22   a big way,       and I'm going           to read you just a couple
23   of statistics.           I hate      to read statistics,                  but
24   these    are kind of impressive,                  and you have            them       in
25   your    sheets.      It came       from a -- it was a survey




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   done,    a bipartisan        survey      by the Lake Research
 2   Group    and the Terrance           Group,       and it was a
 3   nationwide    survey.          It was sponsored              by about         six
4    national    children's         organizations,             including       the
 5   American    Polish      for America's            Children           and the
 6   American    Academy      of Pediatrics,             and just a few
 7   quick    statistics.
 8                  85 percent         of voters          said that
 9   children's     issues were          important         in making         their
10   voting    decisions.         48 percent          said it's their
11   number    one priority.            64 percent         said government
12   should playa        role.        62 percent         would      oppose     a
13   balanced    budget      if it required             cutting          children's
14   programs,    and this is the most                  interesting,          65
15   percent,    almost      two-thirds         of voters          surveyed        say
16   that they would         favor proposals              for families         and
17   children    even if it meant              slowing       down deficit
18   reduction.     And 76 percent               said they are more
19   likely    to vote     for a candidate              who supports
20   increased    spending        for children's             programs,        and 88
21   percent    said that they will watch                    this Congress'
22   performances     very closely             on children's              issues.
23                  So we've made a difference.                           It has made
24   an impact.      This issue           is now front and center                   and
25   it is no denying          it and it will not go away at this




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 1   point.     So now where       do we go from here?                     We've    got
 2   to continue     media    outreach,          and we're          going    to
 3   continue     to do that.        We're      producing           the videos.
 4   We've    got a CD ROM that's            just been          finished         that
 5   IBM funded,     and that's        going      to be coming             out.
 6                  We're working          with,      I said, with MatteI
 7   and Fisher     Price,    and we're          also going             to have a
 8   CEO summit,     and that's        important          and it's one --
 9   and I've talked       to a number          of governors
10   privately.      And to address            you now all together,
11   that CEO summit       will happen,           dovetailing             with your
12   conference     in Washington          in February.                 And we were
13   going    to be butted      up against          you guys            so we're
14   hoping    that we can get, you know, we don't                          --
IS   obviously,    we're     not asking          for everyone             to come.
16   We know that it's going             to be tough            for everybody's
17   schedules,     but we would         like to have the
18   participation     of the governors               at this CEO
19   conference     that we're       cohosting          with Kaiser
20   Permanente.
21                 And the reason            for that is, the three
22   things    that we're     going      to cover         at this
23   conference,     one is health           care.        That's         Kaiser's
24   main area, health        care.        I'm so thrilled                that $24
25   billion    were earmarked         for health           insurance        for




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 1   children,    and I know it's disappointing.                             Governor
 2   Almond's    here.       He's disappeared                he's so upset
3    because    his state has done so well                         in terms of
4    insuring    kids that he's already                    reached          the goals
 5   so he doesn't       get any of the $24 billion.                              I think
 6   there's    about    five or six governors                     that don't
 7   participate    which        is unfortunate.
 8                  I know you're             all, you know,                lobbying
 9   heavily    for more       loosely        block      granted,           you know,
10   funds.     And I know the President                     wanted         more
11   restricted     funds,       and I can understand                      both    sides
12   and why they wanted            it, but it's just a shame                        it
13   seems to me that the governors                      who are succeeding
14   and doing what they need to be doing                            are not being
15   recognized     and not being             rewarded         in the success
16   mode.     And there       should       have been          some kind of
17   provision     for governors            who have met those
18   standards     to be, maybe           that money           could be used              for
19   child    care or something             else because             in order        for
20   us to make this work,              it's not going               to be just
21   health    care over here or child care over here or
22   intervention       programs        over here or parent                   education
23   over here,     they have to be integrated.                             And they
24   have to be integrated              in a comprehensive                   way.
25                  So what we have to do is find ways                               to




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   pair up public        and private           partnerships              and make
 2   specific     investments         in communities                in a
 3   comprehensive       way with         a one-stop           shopping       where          a
 4   parent    of a young        child      can go to a family                resource
 5   center    and know      that there's            quality         child    care
 6   available,       health     care,      intervention             programs       for
 7   families    at risk and parent                education.              That    is one
 8   of the functions          of this CEO summit.
 9                    The second        of which         will be what             the
10   CEOs are doing        in their         own companies              in terms         of
11   family-friendly         work policies.                But the third            thing
12   and to me, the most             important         thing        and what we
13   need    the governors'          support        for, is to talk about
14   how governors       and private            industries           can partner.
15   What    are the ways        that that can happen,                     and let's
16   explore    that.      There      are a number             of good       things
17   already    being    done.        We'd      love to share              that with
18   these    CEOs,    but we'd       also love to come to that CEO
19   summit    with    some models          in place,          some real models,
20   working    models     that show how these                     services       can be
21   integrated       in a convenient             family       resource       center.
22                    And we've       started        a number         of things
23   already    with    Governor        Voinovich,           Governor        Locke,
24   Governor    Whitman.          You know,         we've         been very,       very
25   involved    with    Governor         Whitman        in New Jersey             in




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   trying    to make     a comprehensive               integrated           program
 2   work    for Trenton      and then ultimately                    for the entire
 3   State    of New Jersey.            A plan       is now being             worked
4    out where    we can figure             out how to make                these
 5   partnerships       work on a community                 by community            basis
 6   and you all know,          that's        the way it needs                to be
 7   done.     We need     to identify           the leaders,              make     sure
 8   that those     leaders       have a stake             and investment               in
 9   this,    and then find a way to cobble                        together         the
10   funds.
11                  I, kind of naively,                  but not so naively,
12   I'm not that dumb.             I went       to Washington               before       we
13   launched    our campaign           and talked           to the people              in
14   Washington.        Well,     at the time and this is two or
15   three years     ago, there           is not a great              will up there
16   for -- and there          are not new funds.                    We know we've
17   all been    facing      this budget           debate          for quite        a
18   while,    and now it's resolved.                    But the economy                has
19   gone    steadily    pretty       well      in the last three years.
20   And in a year       or two, there may be funds ultimately
21   that will be freed up, and we only hope                                it can be
22   because,    Doug    Price,       you're        absolutely             right.       We
23   need money.        We need money             to do this.               The
24   programs    that Lynn Karoly               talks      about       are not
25   inexpensive,       but wildly          more      inexpensive            than the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   alternative.        But we need            to make        the investment.
 2                    So until       we can partner                federal        dollars
 3   with    state dollars        and with         local       communities           and
 4   the business       community,          we've      got to start               on a
 5   community-by-community               basis.         So we would              like to
 6   arrive    at that CEO summit               to be able           to point        to a
 7   couple    of model       communities          and see how it's being
 8   done    in a comprehensive             way so that when                 the
 9   federal    funds    are loosened            up, and they will be
10   because    this    is immutable.              This      is not going            to go
11   to away.      It's immutable.               When      those      funds        are
12   released,    we'll       have    some models            to point         to and
13   say,    "This is how it can be done and this                             is the
14   way the federal          money     can be used."
15                    So I would        urge you to check your
16   calendars.        We'll     be talking          to you about             helping
17   us with    the CEO summit.               That's       about      all I have to
18   say.     I said a lot.           I don't        know what             else    to say
19   except    that    like    I say, this is not going                       away       and
20   I am so thrilled          that the NGA has taken                       the lead on
21   this.     It's just so great               that Governor               Miller       is
22   passing    the baton        to Governor           Voinovich            who is
23   making    it his top priority,                 and, Governor             Carper,
24   where    are you?        You're      over      there,         and I met with
25   Governor     Carper      yesterday         and he also pledges                  to




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
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 1   continue    working        in this area.
 2                  So I'm very            thrilled         about      it.      Thank
 3   you for having         me and we can talk about                        whatever
 4   you want,    doesn't        have      to be this,              could    be sex or
 5   religion,    politics.            We're      happy       to discuss
 6   anything.
 7                            (Applause.)
 8                  GOVERNOR         MILLER:          Well,         thank    you to our
 9   cheerleader.         Whether        it's what          a guy or what          a
10   gal,    it clearly       is thoroughly             in your        bones     and
11   throughout     the rest of your                body,       and I think
12   you're    going    to convert           everybody.              Maybe     we can be
13   a little    bit of help           there,       and to our challenger
14   and our information             provider.            Let me open           it up to
15   a few questions          from or comments                from any of the
16   governors.        Yes, Governor             Carlson.
17                  GOVERNOR         CARLSON:           Well,        Mr. Chairman,        I
18   first    of all also want             to thank         all of the
19   speakers.      I think         it's an extraordinary                     effort.
20   Let me if I may just make                   some comments               and end up
21   with    something      that will          probably         be slightly
22   controversial.
23                  First       of all,        in Minnesota            we made
24   Children     Can't     Wait     our first priority                     in January
25   of 1991.      And what we did was try to figure                             out a




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 1   stategy    that could,         one, identify            all the programs
 2   that dealt with children.                  That's       the first
 3   structural    problem.          My recollection               is that we
 4   found that there was something                     like 250, and they
 5   were    scattered     in virtually           every      department,
 6   agency,    subagency,        sub-subagency            that you could
 7   find.     And we brought          together         the leadership             of
 8   business,    in this case one of the chairpeople                              was
 9   the president       of U.S. West.              The other            chairperson
10   was my wife who is a court                 referee        and an
11   attorney.
12                 And we drove            the formation            of a single
13   department    to deal with children,                    families        and
14   learning.     So I think we're               the only integrated
15   effort,    and I think         it's worked          out reasonably
16   well.     But obviously          it takes        a lot of monitoring
17   and a lot of focus on that particular                          thing.
18                 Two, we took,             as Bob Renner               has said and
19   that is a holistic           approach.           Traditionally,
20   Minnesota    has always          been one of the top states                        in
21   immunization,       but the point            is we wanted             to get to
22   a hundred    percent.          If it don't           get to a hundred
23   percent,     I think you have to regard                     that percentage
24   that loses as a failure.                  But it's got to be done
25   on the basis     of the totality               of the child.             And




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 1   that's    going    to get us into some controversial
 2   areas.
 3                 My wife         is now taking             leadership         in a
 4   very    controversial        area called            fetal alcohol
 5   syndrome.     As a court           referee,         the bulk of the
 6   children    that she sees suffer                  from it.             They don't
 7   respond    to the traditional               models        that we're
 8   talking    about    this morning.               They need special
 9   treatment.        But the real area that I notice                          that
10   there's    a kind of -- I don't                 want      to sayan
11   indifference       but a fear of getting                      involved     in and
12   that is a responsibility                 of the mother                during
13   pregnancy    to make        certain        that she eats and drinks
14   right.     Thank you.
15                  There      is a real hesitation                    for anybody
16   to want    to get into this sensitive                         field,     but it
17   has to be done.           If ten percent              of all of our
18   children    have    fetal alcohol              syndrome,          I can't       tell
19   you the costs       in hundreds            of thousands               of dollars
20   per child.
21                  And two, the traditional                        models     of
22   education,     et cetera,          simply       don't         work.      By and
23   large,    there's     a lack of an ability                     mobility        to
24   understand     the consequence               of an action.               They
25   don't    understand       the linkage.              In many of the




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 1   people     that    we're        incarcerating             and putting                into
 2   our prisons        are people             who    do suffer          from        this.
 3   And    that's     an area         where      I'd like         to see           the
 4   governors        get    involved          in.
 5                     The     second       thing      is the whole                broad        area
 6   of education.             We fully         fund     Head      Start.            And    I
 7   don't     know    if we're          the    first      state        in America              to
 8   do it, but we believe                  so strongly            in Head           Start,
 9   that    we fully        fund      it and will           fund       any programs
10   that    anticipate          even      a rising        so that           the
11   expectation        is that          every       single      person         has       access,
12   if you     will,       to Head        Start.        It's      one       of the proven
13   models     that    came       out     of the       1960s.          It works.               We
14   like     it.     It's     measurable.             There's          no reason           in
15   the world        why    we couldn't             focus     more      of our
16   attention        on it.
17                     The     third       piece      is a lot of creative
18   work     in the    field        of corrections.                   We like        to call
19   it corrections,             but     the    reality        is it's          a
20   lock-'em-up-throw-the-key-away                          sort       of approach
21   until     the prisons           get    so full        and     then        we let them
22   out.      But    there      are     a lot of good             models.            Allover
23   the United        States,         we're      exploring            the     idea,       for
24   instance,        of building           boarding         schools.               We had
25   wonderful        visits,        particularly            in Pennsylvania.                        We




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 1   loved    one of their programs.                  New York has an
 2   excellent    program.         But the point              is, to try to
 3   focus on the well-being               of the youngster               so that
 4   person    can ultimately          become       a productive           member        of
 5   society.
 6                 The dilemma           that we run into is,
 7   frankly,    financial.          We've      made the assets
 8   available    for children.              We like to feel,               and I
 9   think we are, number            one in the country                   in this
10   area.     But I'll tell you what we also are.                               We're    a
11   net imports     from other          states,        and it shows up in
12   our prison    rolls.         If I recall           correctly,          40
13   percent    of our inmates           came      from out-of-state
14   within    recent   years.         We have heard              stories,        and we
15   believe    they are true that people                     are paid bus fare
16   to go to Minneappolis-St.                 Paul.        They have higher
17   welfare    up there.         They'll        pay you better,             all
18   those kinds     of things.            We are also beset                with
19   governors    and their        economic         development
20   organizations      sending        in rating          parties         to tell our
21   companies    that they could              do better          tax-wise        if
22   they went    elsewhere,         and one of the areas                   they like
23   to talk about      is how much we spend on social
24   services.
25                 Now,     if we're         going      to have an




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 1   integrated       focus on the well-being                      of children,              we
 2   are also going          to have      to have        to make           some tougher
 3   decisions       on the other         side of the ledger.                      We
 4   can't    have    it both ways.             Those      states          that take
 5   the risk,       those    states      that      invest         the money,           right
 6   now has some extent            get punished.                  We get punished
 7   by the federal          government         in every           single        aid
 8   formula    they've       ever devised,            we are at the
 9   bottom.     We did universal               health       care.          We put
10   children    first       into health          care.
11                    What    happens       when     the feds decide                   to
12   reimburse       on health      care?         Punish       Minnesota           because
13   we're    17 percent       below      the national              average        in
14   costs.     Reward       the inefficient,              punish          the
15   efficient.        We lose on agriculture.                       As a matter                 of
16   fact,    I think we're         46th to 47th             among         states       in
17   what we get back          from the federal                government.
18                    So we've      got a long way to go to
19   straighten       out all the disincentives                      that have been
20   built    in the system.            You and I, as governors,                            will
21   go to this meeting,            the soft side of us will                           come
22   out and say,       "Yes, we're           pro children."                 We go back
23   right    into a hard        session        and say,           "Boy, oh, boy.
24   How can we take some jobs from X and move                                   them       to
25   Y?"     And so when you talk about                    bringing          business




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 1   together,    I'd like to see a holistic                         approach       there
 2   as well.     And    I'd like to see governors                         agree    that
 3   maybe    we don't     go into other             peoples'         states       and
 4   try to raid jobs,           and maybe         we don't          wink when we
 5   hear    ideas being       spawned        of shipping            people
 6   elsewhere    that you don't              want.
 7                 But I would            also particularly                 like to
 8   see us focus on fetal              alcohol        syndrome.            I can
 9   guarantee    you that within               the next           several    years,
10   when you get down           to identifying              one of your           large
11   causes    in juvenile        problems,          it's FAS.             So with
12   that, Mr. Chairman,             I want      to thank you, very much,
13   and I want to thank            all the speakers                 for their          job
14   well done.     Thank        you.
15                 GOVERNOR         MILLER:          Thank         you.     Governor
16   Dean.
17                 GOVERNOR         DEAN:        Thank       you,
18   Mr. Chairman.         I would        like to agree              with much of
19   what Governor       Carlson        has said and just mention
20   that one concern          that     I have that Rob Reiner
21   brought    up in his address.                 We are beginning                to
22   learn more about          the federal           budget         agreement,          and
23   I think by and large             a very good agreement                   for many
24   states    in America.           There      are five states,
25   Minnesota,    Washington,            and Hawaii           and one other




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 1   pardon?     Rhode     Island,        thank you,           that which           Rob
 2   singled    out that are not really                    helped          very much,
 3   but I just learned           that there's             an additional
 4   problem    for any state that is up, for example,                                to
 5   185 percent      of poverty          such as the State                  of Georgia
 6   which   gives    it zero to six, they would                           be capped          at
 7   200 percent.
 8                   So unfortunately,               we're         going     to get in
 9   our state    $14.6 million             that we can't             spend.         So I
10   think   I would     hope that before                the ink gets
11   finalized    on this budget              agreement            that this
12   business    of allocations             for children             gets worked
13   out properly,       because        it does seem to be a short
14   circuit    in this particular                aspect.           And     I would
15   urge on a       bipartisan         -- Governor            Almond        and I met
16   early   this morning         and on a bipartisan                      basis,    I
17   would   urge governors           to call their                Senators     and
18   their Congressmen,           particularly             if they happen                to
19   be in the conference             committee          and let them know
20   that this 25 percent             add-on       cap is a real problem
21   for any state,        not just Governor                 Carlson's         or this
22   one's been among          the leaders,            but far more            than the
23   five states      I thought         this originally                affected.
24                   Anybody       here that's           at 185 percent              of
25   poverty    for any category              is now going             to be capped




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 1   in terms    of additional               health       insurance            for
2    children    at 200 percent               or whatever             percent         you're
 3   at plus    25 percent,            which      in our case makes                   it very
4    difficult       for us to spend              the actual            money        that
 5   we're    going    to get.           So the net effect                    is that our
 6   people    are going         to be paying             more        in cigarette
 7   taxes    and getting          less than that money                       back    for
 8   kids'    health     care.         I think,         I'm not sure what's
 9   going    on in the conference                  committee           but this
10   doesn't    make     sense       to me and I think                  we need        to try
11   to address       it.
12                    GOVERNOR         MILLER:          I planned             to try and
13   add that to our discussion                     at the governors                  only
14   session     after      we've      heard       from Secretary               Reilly       and
15   others    on early         childhood.
16                    GOVERNOR         DEAN:        Thank       you.
17                    GOVERNOR         MILLER:          Any other?              Well,       I
18   want    to thank       our presenters              all for being                here       and
19   especially       our friend,            Rob Reiner,              who     is our
20   conscience       on this matter.                 We're       going        to continue
21   to call on you to make                  sure      that we're             going    in the
22   right    direction,          so thank         you an all very much.
23   Thank    you.
24                    Now     let me turn            to an enjoyable                 part       of
25   the agenda       where       I get to present                awards        to a




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 1   number    of governors      who have         implemented             promising
 2   programs    to improve      results        for young          children.            As
 3   part of my first       three years           initiative,             I asked
 4   you to share your most recent                  state        innovations           in
 5   promoting    the healthy        development            of young
 6   children.     66 promising          practices          were submitted,
 7   that's    in this pamphlet          you'll       receive           in a moment,
 8   and we're    demonstrating          the strong             commitment        you
 9   have to this important            issue.         And these promising
10   practices    represent      a broad        and diverse              continuum
11   of dynamic    state programs.
12                 At one end of the continuum                          are programs
13   that target    one component            or one category               of
14   services    for young      children.           At the other            end of
15   the continuum    are the multi-faced                   programs        that
16   exemplify    a comprehensive            vision       of integrated
17   services    to serve our young             children.               So positive
18   results    can and have been achieved                      for young
19   children    and their      families        through          strategies           that
20   fall all along     this continuum.
21                 The 1997 Building              Block Awards             intended
22   to recognize    the governors            who submitted               the most
23   promising    practices       to improve          results           for young
24   children.     I asked      an independent              panel        of early
25   childhood    experts     to judge         the submissions,                 and




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 1   they had a very         difficult         time because                they all
2    show promise.         In fact,         I asked        them      to recognize
 3   three    or four governors,              and they         said they
4    couldn't    go any lower           than eight.                So all of you
 5   are to be commended            for making           their       job so
 6   difficult.
 7                  In recognition             of their            commitment        to
 8   building    better      programs         and improve            the lives        of
 9   young    children     and their          families,            award     winners
10   will    receive    a crystal         building         block      and a
11   certificate       congratulating            the recipients               of the
12   '97 Building       Block     Award.          I'll ask each governor
13   to come up to the podium                 when     I call your            name    to
14   receive    the award.
15                  To Governor           Lawton       Chiles        for his
16   multiple     efforts      to raise         awareness           about     the
17   importance     of early        childhood.             Today      we recognize
18   Governor     Chiles     for two of his initiatives,                        the
19   Child    Care Executive          Partnership            and Maximizing
20   Florida's     Brain     Power.         The Child          Care Executive
21   Partnership       is a public-private                 board      that oversees
22   an innovative       financing          strategy         that      raises       over
23   $2 million     for child         care      in less than               six weeks.
24   Boy,    I could    use you       in fund raising                in general.
25   All of us might         want     to borrow          that.




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 1                 The strategy             provides         matching         funds    to
 2   employers    who pay part            of the costs              of child        care
 3   for their    employees         who are eligible                 for state
 4   subsidized     child      care.
 5                 And Maximizing               Florida's           Brain     Power    is
 6   a privately     funded       program        that trains               a team of
 7   speakers    to spread        the word         about       the new research
 8   on brain    development          that we heard                about     at the NGA
 9   winter    meeting.        If Governor           Chiles's         state     of the
10   state    address    is any indication,                  he's a leading
11   member    of that team.            Governor         Lawton       Chiles.
12                  GOVERNOR        MILLER:          To Governor             Roy Romer,
13   who had to depart          because         of a natural               emergency       in
14   Colorado,     for his strong             leadership            as a co-chair
15   of Bright    Beginnings.             This private              sector,
16   volunteer-based         effort       has mobilized              individuals,
17   businessed     and communities               around       the goal        of
18   making    Colorado      the best place              to raise           a child.
19   With    advocates     like Doug          Price      on the team,           it's
20   clear    why this     initiative           has been           so successful,
21   and the first        lady of Colorado               is going           to join us
22   to accept     the award,         Bea Romer.             Bea is actually               is
23   on her way here.            There      she is.          Okay.
24                  To Illinois           Governor         Jim Edgar,          another
25   eloquent     advocate       for children            in his state           of the




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 1   state address,        for convincing              his legislature               of
 2   the importance        of investing            in child          care        in light
 3   of the new work requirements                    under         welfare        reform.
 4   Illinois    now provides           child      care subsidies                 to all
 5   working    families      with      incomes        below        50 percent        of
 6   the state medium          income.         All recipients                will
 7   contribute     to the cost of the care, but the new
 8   program    is intended         to be more           equitable           and
 9   efficient     subsidy       for working           families.
10                  Unfortunately             Governor        Edgar         could    not
11   be with us today,          but we congratulate                   him for his
12   outstanding     work on children's                  issues.            Governor
13   Edgar.
14                  To Governor           Jim Hunt,          for his
15   persistence     in a raising             funds      to make           the
16   nationally     recognized          Smart      Start       Program           statewide
17   in North     Carolina.         Currently          a little            over half of
18   North    Carolina     counties         have public-private                    Smart
19   Start partnerships.              Activities           along      these        local
20   partnerships     include         a neonatal           tracking          program
21   for at-risk     infants,         paternal         and child            support
22   groups,     increasing        the number          of child            care spaces
23   designated     for infants           and toddlers,              teaching
24   education     and support          services         and community
25   outreach     and awareness.              Governor         Hunt.




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 1                  To Governor           Christine          Todd Whitman           for
 2   her comprehensive           early      childhood          initiative          also
 3   called    Bright     Beginnings.             This     $8.5 million
 4   initiative     will     increase         the quantity            and quality
 5   of child     care    in New Jersey            and encourage
 6   collaboration        amongst       various        state programs,              Head
 7   Start,    child     care providers,             parents         and the
 8   private    sector.        Bright       Beginnings             will    help to
 9   provide    the necessary           support        for mothers           of
10   infants    and toddlers          participating                in the
11   governors'     welfare        reform       program,           Work    First    New
12   Jersey.     Governor        Whitman.
13                  Your vice-chairman,                  Governor          George
14   Voinovich,     for his Early             Start      and Adopt          Ohio
15   programs.      Early      Start      offers       a collaborative
16   community-based         integrated           system       of services          and
17   supports,     helps     strengthen           and preserve             families
18   experiencing        problems       before       they become            a crisis.
19   The program       operates       in 30 counties                and includes
20   home visits,        medical      services,          parenting          education
21   and referrals.
22                  Adopt      Ohio     is a public-private
23   partnership       created       to double         the number           of
24   successful     adoptions         of children            who are waiting
25   for a permanent         family.          The issue provides                  clear




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 1   incentive     payments       to agency         partners         that recruit
 2   and train     adoptive       families,         make      initial
 3   placements,     finalize        adoption         and provide           post
 4   finalization       services.          Governor         Voinovich.
 5                  We'll     trail      that for a minute.                  Governor
 6   Voinovich     was called        out for a second                so we'll       come
 7   back    to him in a minute.
 8                  To Governor          Howard       Dean,        the father       of
 9   the NGA Campaign         for Children            in 1994 with a
10   Success    By Six initiatives               in Vermont.              This
11   community     gates    program        as multiple             components       to
12   provide    services      to 9000 children                at costs       of $100
13   per child.      In the last two years,                       the program       has
14   grown    to include      welcome        baby visits            for families
15   with    a new child,       a family         literacy          program       that
16   makes    trained    staff     and books          available           to all
17   families,     and an incentive              program          to improve       the
18   quality    of child      care.        This     initiative            undoubtedly
19   contributes     to the 73 percent                drop        in young       sexual
20   abuse victims       over the past             six years.             Governor
21   Dean.
22                  To Governor          Cecil Underwood,                 for his
23   continued     support      of the Starting               Points       Early
24   Childhood     Centers      in nine West Virginia                     counties.
25   These    centers    provides        comprehensive              services       and




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 1   support    to families         with young            children         and build
 2   upon the extensive           family       resource            network     that
 3   receive    public     and private           funds       to identify         and
 4   address    the needs       of the local              communities.
 5   Governor    Underwood.
 6                 All of these             submissions             will be
 7   available    in the media            press      room and through             the
 8   NGA web page     so we can spread                 the word about            the
 9   exciting    things      that are happening                    in the state.
10                  Now as Doug           Price pointed              out to us
11   earlier,    public-private             partnerships             in support        of
12   early   childhood       initiatives           make      sense         for both    the
13   business    and the public             policy        perspective.           Our
14   corporate    partners        bring       expertise            and resources
15   that complement         our strengths             in the public            sector,
16   and in this last segment                 of this morning's                session,
17   we want to highlight             two offers           of corporate
18   partnerships     that I really               think      that you're         all
19   going   to be very        interested           in.
20                  One is with Hallmark                   Cards      and the other
21   is with    Pfizer.        The Hallmark            Cards        Immunization
22   Greeting    Cards Program,             despite        the efforts          that
23   we've   all made in our states,                   our national
24   immunization     rate hovers             around       78 percent          and is
25   dismally    low compared           to that of other                   developed




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 1   countries.      Today,      more      than 1 million                 children       in
 2   America    under    the age of two are vulnerable                         to
 3   preventative       disease.         Every      child         in our country
 4   should    be properly        immunized.            As governors,              we
 5   should    take the lead in seeing                  that the children                    of
 6   our states     get the best possible                   shot at good
 7   health.     So I invite         you to join me in taking
 8   advantage     of an innovative              immunization              program
 9   called    For America's         Babies.
10                  It was developed              with      the help of
11   Hallmark     Cards and successfully                  road tested          in
12   Missouri     and Kansas.          Governors          Carnahan          and Graves
13   wrote    you a letter       about       this program            in March           of
14   this year,     and many of you have already                           expressed
15   strong    interest     in learning           more.           Once you've
16   heard what Governors            Carnahan         and Graves            have    to
17   say,    I'm certain      you will want             to consider
18   seriously     adding     the greeting            card to your
19   immunization       parcel.
20                  Now I'd like to introduce                       Governors           Mel
21   Carnahan     of Missouri        and Bill Graves                of Kansas           who
22   will tell you more about                the program.                 Governors
23   Carnahan     and Graves.
24                  GOVERNOR        CARNAHAN:           Thank       you, Governor
25   Miller.      We are proud         of Missouri            that we were              the




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 1   first   state     to try this new immunization                          promotion
 2   program    and I want         to thank        our advocacy
 3   organizations       based      in Kansas          City,        the Partnership
 4   for Children       and our Missouri               headquartered
 5   company,    Hallmark,         for collaborating                 with        Jean    and
 6   me to make      this successful             program           work     in
 7   Missouri.
 8                   Now,    this all started                in 1995,            and when
 9   we resolved       to raise       our immunization                 rate       for
10   children    under      two from a dismal                64 percent            to 90
11   percent    by the year         2000.        The initial               program
12   started    with    new legislation,               statewide            information
13   network    and a reminder            to parents.               That     same year
14   this Partnership          for Children            persuaded            Jean and me
15   to personally       reach      out to parents                 of newborns           with
16   a congratulatory          note     and an immunization
17   reminder.       Then    the partnership               approached             Hallmark
18   to design     and print        the greeting             card and it was
19   sent to us for sending.
20                   Now,    here     is what,         they are going               to
21   demonstrate       behind      me, what        the Hallmark              company
22   came up with.          Here     is the oversized                card,        the
23   personal    message       inside,        the detachable
24   immunization       record       the parents           can keep          reminding
25   them of the need          for keeping           immunizations




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 1   up-to-date.
 2                 Now cards         like these were mailed                    in
 3   Missouri    before     the newborns            reached         two months        of
 4   age.     Because    that's      the ideal          time for them to get
 5   their    beginning     immunization.               Since we first
 6   started    this in January            of '96, we've             mailed     out
 7   over    114,000    cards.       And then we follow                   up the card
 8   with our Smart        Start     program        four times            during     the
 9   first year of life.             The mother           receives          a reminder
10   phone    call at times when             the children's
11   immunization       are due.         We try to get the call to be
12   made    from the same person              each time,           a female
13   volunteer     so that the family               hears         a familiar
14   voice.     And we believe           this approach              has helped        us
15   reach    an all-time       high in our immunization                      rate.
16   Right    now, our rate for children                    under         two has
17   increased     11 percent        in just a little                over a year.
18   And according       to our latest             information,             in our
19   public    clinics,     it's above           that.        They show we're
20   now getting       up to over        86 percent           from that 67 that
21   we started     with    just a little             over a year            ago.     Now
22   while    we can't give complete                credit         to the card,        we
23   believe     it's given       our program           a big boost.
24                  We believe         it's the personalization                      that
25   has the emotional          appeal       and makes            the whole




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                       72




 1   program    effective.       The response             has been
 2   wonderful.      We've    gotten       thank you letters                  from
 3   parents,    one set of parents             told us they never
 4   received    a card or letter            from a public               official
 5   before,    and it meant       a lot to them and here's                       what
 6   they said,     "Thank you for caring                 enough         to take the
 7   time to remind     new parents            about      the child           shots.
 8   It's true with     so much going             on, it's easy to
 9   forget    to make a doctor's            appointment           when no one
10   is ill."
11                 Now from sending             these       cards,        we also
12   get in response      -- we get lots of baby pictures.
13   Let me share one with you here.                      We got a picture
14   of Cheyenne     Yvonne     Reardon        from Saint          Joseph.           Her
15   parents    are David     and Carol         Reardon.           She's       now 8
16   months    old and they sent us the picture                          along with
17   a handwritten     copy of the immunization                         record.
18   Many of them say,        "Yes, we are keeping                      the
19   immunizations     up."
20                 We think       that it is making                 a big
21   difference.      From a financial              standpoint            some
22   estimates     have been made on what you save from
23   getting    the immunizations            made and the estimates
24   are that for every dollar               you spend on
25   immunization,     you save at least                24 times          that




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              73




 1   amount.     But it also gives               the children
 2   protection.        It's one of the best                  investments               we
 3   can make.        We hear     from many of them about                         how
 4   effective     they think         the immunization                card        is.
 5                    We want to answer              the questions                that you
 6   have asked       of how can you get that into your
 7   state.     Thanks       to the commitment              of Hallmark             and
 8   this opportunity,          Governor         Miller,           that you've
 9   given    us here at NGA, we are getting                         information              to
10   you as to how all governors                   can get into the
11   program.
12                    When    I talked        about      this very briefly,
13   at a session       at the President's                 Summit          on America's
14   future,    General       Powell      was in the audience.                      I

15   didn't    know    it.     We had a darkened                   room and he took
16   notes    and this is one of the things                         he picked           out
17   to talk about       at his conclusion                 of the summit,                and
18   here's    what he asked          the crowd;           he said,          "Does this
19   cost a lot of money?               Is this brain               surgery?            Can
20   we do it everywhere?"                And,     of course,              answered          it
21   that of course          we can.
22                    Well,    his words          are prophetic.                  It is
23   true that now we are getting                    this      information              to
24   you.     We can have this very                 direct,         simple        program
25   available.        Something        we can do that's                   very




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           74




 1   effective     to get that          immunization               rate up.         I want
 2   to turn this over           to Governor           Graves        to tell the
 3   Kansas    success     story      and tell you how you can take
 4   advantage    of this wonderful                program          provided        to us
 5   by Hallmark.        Bill.
 6                  GOVERNOR        GRAVES:          Mel,      thank you very
 7   much,    and thanks       to you and Jean               for your
 8   leadership     in Missouri           and also,          Mr. Chairman,
 9   thank you for allowing               us to tell you about
10   Hallmark's     offer,       and I want          to perhaps            reference
11   to certain     things,        Doug's       comments           about where        do
12   we find money       for these          things.          Just      so I can get
13   everyone's     attention,          this      is a free offer              by
14   Hallmark,     so for the governors                  who are not paying
15   attention    here, you're            being      given         an opportunity
16   to participate        in a program             that has the potential
17   to make    a big difference              in your        state,        and I will
18   tell you that       I happen         to believe           this        is in your
19   best    interest    to take advantage                 of this;          one,    it's
20   good politics;        two,      it's good public                policy;        three,
21   it is good     in terms         of the parents                who benefit        from
22   it because     it helps         them with         quality         of life
23   within    their    family,       but again          going       back     to Doug's
24   challenge     to us, the reason                for you to do this                is
25   because     it's good       for the kids.




               LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            75




 1                 This     is a great          way to create               a program
 2   of reminding       parents      about      getting           their     children
 3   immunized    on time.         As many of you know,                     and if you
4    think    about both      former       colleagues             like Governor
 5   Merrill    and Governor         Buy and now Governor                      Locke,
 6   who's    a new father,        and Linda          and I, of course,
 7   have a 18-month-old           daughter,          Governor            Merrill      or
 8   Governor    Engler     who has his hands                 full with three,
 9   we can appreciate         personally           the importance               of
10   immunization,       and what Hallmark                is offering            here       I
11   think    is a tremendous          program        and commitment              on
12   their part    in this kind of a partnership.
13                 We have a program                in Kansas,             we happen
14   to call it Operation            Immunize.            Linda      has been very
15   involved    in that and it has been                    successful           over
16   the years    in helping         us raise         our immunization
17   rate.     We still have a long way to go, but through
18   the efforts     of Hallmark,            it's making            our job a lot
19   easier.     I also would          encourage          you,      this is the
20   packet,    if you haven't           dug it out already                    in your
21   stack,    you should       do so and take a look at the
22   smaller    version     of the card that's                    included       that
23   Mel referenced.
24                  I think       that we should              not underestimate
25   what    it means    to new parents             to receive             a




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          76




 1   personalized       card from a governor.                     In fact, the
 2   thing that struck         me most         about      our efforts          in
 3   Kansas    were    the kind of comments                 we got back and
 4   the one I want to share with you from Crystal                                  wrote
 5   to Linda    and I said,          "Governor         and Mrs. Bill
 6   Graves,    I just wanted          to thank you for the card.                          I
 7   never    got a card from high authorities                            like you and
 8   your wife,       Linda.     Our baby         is very,          very special
 9   to me.     Enclosed       is a picture,            please       enjoy.         Thank
10   you, Crystal."         And then she says                 "PS, please,           keep
11   in touch."
12                    And I think again             it's critically
13   important    that we recognize               as governors              that we
14   have a constituency           that looks           to us for
15   leadership,       but also in effect               knows       us through           our
16   public    appearances        and thinks          of us, you might               say,
17   as I hope friends.
18                    Let me close by saying                  that there's           a
19   blue sheet       in the packet,           and it's sort of the
20   quick    and easy version           of how you sign up for this
21   program.
22                    I want to point            out to you that what's
23   being    offered    is Hallmark           will donate            to any
24   interested       state or territory              enough        of these
25   greeting    cards and envelopes                to reach          the parents




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          77




 1   of each child born           in your        state      or territory            in
 2   calendar    years     1998 and 1999.                The cards          get to be
 3   individualized        with your own message,                     your
 4   signature.
 5                 The complete             instructions             for this
 6   program    are actually          being      mailed        to your office
 7   and to the state          health       departments            in your        state.
 8   They should    be arriving             probably         during        this
 9   meeting    or in the next day or two, and I certainly
10   encourage    you to take advantage                    of Hallmark's            very
11   generous    and very        effective         offer       in raising
12   awareness    about      immunizations.                Thank      you very
13   much.
14                 GOVERNOR         MILLER:          Thanks        to both of
15   you.
16                  I want at this time to recognize                              Karen
17   Barts,    Hallmark      Community          Development           Manager       and
18   Jose Cordero,       Deputy       Director         of the National
19   Immunization     Center         for Disease           Control         Prevention
20   for their     leadership         in putting           this program
21   together.      I think        this really           is a wonderful
22   opportunity     for all governors,                  and I want to be the
23   first    to sign up for the greeting                      card program          and
24   I'm going     to doing        that right          now.
25                  Stand      up, Karen.            You did it already,




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           78




 1   okay.     As I mentioned,            we also have another
 2   outstanding     example        of public-private                 partnership.
 3   This meeting     begins        the fifth year of Sharing                        the
 4   Care initiative,          a public-private                one and which              was
 5   launched    along with Pfizer               and the Community                 Health
 6   Centers    to provide         Pfizer       medicines           at no cost to
 7   patients    without       insurance         who are below               the
 8   poverty    level.
 9                  To briefly          update       you on this program
10   that has exceeded           all of our expectations                      in
11   providing     access      to needed         medicines           for Americans
12   who have    fallen      through        the cracks.              Since     it's
13   introduction,       more than 600,000                 Americans          have
14   received    over $89 million               worth      of medicine.              This
15   program    is now distributing                Pfizer          products        at a
16   rate exceeding        $40 million           per year.             I want       to
17   show you a brief          video      but first would                  like to ask
18   Lou Clemente,       Pfizer's         Senior       Vice-president               for
19   worldwide     corporate        affairs,         and another             man that
20   most of us know well,              Chuck Hardwick,                the
21   vice-president        of the State Government                         Relations,
22   to come forward         as we show the video                    and just thank
23   them very much.           There      they are.            They're        back
24   here.     In expressing          our appreciation.
25                  I think        the video          speaks        for itself,           so




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          79




 1   let's    roll it.
2                            (Video was played.)
 3                    GOVERNOR      MILLER:          Thank         you,     Chuck,    and
4    Lou, and everybody           at Pfizer          and to Hallmark             for
 5   reminding    us that the private                  sector        is there        to
 6   provide    assistance        to us and we really                      appreciate
 7   this.     I'm very pleased             with     the way this meeting
 8   is going.
 9                    For those       you get a chance                to look at
10   the local newspaper,             on the editorial                page     there's
11   an editorial       cartoon       which      depicts           a room     full of a
12   number    of parents        struggling          with young             children,
13   not just Governor          Locke,        I've had an experience
14   seven years       ago with my daughter,                  Megan,         when we
15   first began       office,      they used          to call her the
16   "Velcro    baby"    because        she was stuck               to my arm, but
17   several    of us as young            parents,         but also the thrust
18   of this meeting         as an editorial               cartoonist          looks      at
19   it, was this cartoon             with      all these parents               with
20   children    and someone          saying,         "Is this the child
21   care center       of the hotel?"              And the response              is,
22   "No, that's       the National           Governors'            Association
23   meeting."
24                    So if we could            keep     it that focused,
25   we're    going    to continue          to have a great                 meeting.        I




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        80




 1   thank all of our presenters                 this morning.              For the
 2   governors,     I remind     you we are going                 to go into a
 3   governors-only     session        in a minute.               To those        of us
 4   participating,     we're      going       to have a little                 press
 5   availability     with Rob Reiner,              and since            this is the
 6   last plenary     session      this morning,                let me say to
 7   you, as we conduct         the business            throughout          the
 8   governors-only     session,         our meeting             with     the
 9   corporate     fellows,     I encourage           all the governors                 to
10   participate.
11                  This evening         we have a Silver                 State
12   Celebration     right here        in the Mirage.                   It proves       to
13   be a pretty     good night,         I think,         for entertainment
14   but one component        I want       to make        sure none of you
15   miss    is a greeting      committee         that we've             got for all
16   of you and they have to be other places,                             several       of
17   them,    so we really      encourage         you to be here between
18   6:30, no later than 7:00 or you'll                         miss     some of the
19   greeting    committee,       and I think           it will be a fun
20   event    for all of you.          That's       business            attire    so
21   keep that in the back of your bonnet                         and we'll        see
22   you at the governors-only               session        in a minute.
23   Thank you.
24

25




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                       81




 1                        REPORTER'S                CERTIFICATE
 2

 3   STATE    OF NEVADA
                               ss
 4   COUNTY    OF CLARK
 5

 6                 I, Laurie            H. Webb,              Certified              Shorthand
 7   Reporter,    do hereby         certify              that          I took down           in
 8   Stenotype    all of the proceedings                               had in the
 9   before-entitled       matter         at the time and place
10   indicated    and that thereafter                         said shorthand                 notes
11   were transcribed        into typewriting                              at and under           my
12   direction    and supervision                   and that the foregoing
13   transcript    constitutes            a full,                true and accurate
14   record    of the proceedings                   had.
15                 IN WITNESS            WHEREOF,                I have hereunto                  set
16   my hand and affixed            my official                    seal in my office
17
18
     in the c~rk'
     day Of__~~~~~     __~-=~                 ,
                                               State of Nevada,
                                                  1997.
                                                                                      this        t"~
19
20

21

22

23                   Laurie
                                  --------
                                  ---------,
                                    H. Webb,                CSR No. 50, RPR-RMR




                                  e
24                            i
                              ,                Notary Publlc-State 01 Nevada ,
                              I                    COUNTY OF CLARK           ,
25                            I.          .       LAURIE H. WEBB             ,I
                              I    ..    ..       My Appointment ExpIres
                              : No. 88-0«6-1         .MIary 14. 2000         :
                                  -------------------
                LAURIE WEBB & ASSOCIATES                                   (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada               89101
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                  TUESDAY, JULY 29, 1997

 $                         3400 1:15                       ackn wledl      6:11             49:4; 50:17,23; 69:14; 75:20;
                                                           across 8:1 ; 11:8; 14:2          77:25
 $1.933:6                  4                               act 2:9; 3:17; 26:7              alt rnatlve 52:1
 $10067:12                                                 acting 26:2                      aHrulsm 31:19
 $14.660:9                 47:3; 20:15                     action 34:17,25; 55:24           always 54:20
 $263:23                   40 19:9; 27:18,19; 28:20,21;    acti ns 28:16                    America 34:2; 45:5; 56:7;
 $20,00020:14              57:12                           activities 3:6; 14:22; 20:3;     59:24; 69:2
 $2448:24; 49:5            400031:6                        24:23; 65:19                     America's 47:5; 69:9; 73:13
 $3.633:13                 4540:23                         actlvi~ 18:16; 21:17             American 34:9,10; 44:1;
 $300031:6                 46th 58:16                      actor 7:13                       47:5,6
 $40 78:16                 47th 58:16                      actual 61:4                      Americans 78:11,13
 $400030:18                48 19:3; 47:10                  actual~ 64:22; 77:6              among 13:1; 22:12; 58:16;
 $480030:16                                                ad 30:                           60:22
 $630:1                    5                               adapted 14:1                     amongst 66:6
 $6010:4                                                   add 61:13                        amount 14:22; 73:1
 $790030:15                50 1:24; 29:9; 42:19; 65:5;     add-on 60:20                     analysis 19:14; 21:21; 22:17
 $8 36:13                  81:23                          added 29:21                       analytical 16:11
 $8.566:3                                                 adding 69:18                      analyze 7:25
 $8978:14                  6                              addHion 5:2                       analyzed 20:5
                                                          additional 24:14; 60:3; 61:1      anchor 28:15,15
                                                          address 16:3; 40:22; 48:10;       angst 34:21
                           628:1                          59:21; 61:11; 64:10; 65:1;
                           60 28:19; 29:6                                                   annual 13:23
 '9671:6                                                  68:4                              answer 34:4; 36:5; 73:5
                           600,000 78:13                  addressed 23:23; 24:19;
 '9763:12                  6247:12                                                          answered 35:22; 73:20
                                                          42:3                             Anthony 34:7
                           64 47:11; 70:10                Admiral 26:13
 I                         65 47:14                                                        Antichrist 26:24
                                                          Adopt 66:14,22                   anticipate 56:10
                           66 4:9; 62:6                   adoption 67:3
 ISTOPB 42:19              6771:20                                                         anybody 55:15; 60:24
                                                          adoptions 66:24                  anything 30:11; 53:6
                           6:3080:18                      adoptive 67:2
 1                                                                                         anyway 25:16
                                                          adult 39:15                      apOlogies 27:10
                           7                              adulthood 20:25; 21:2,15         appeal 71 :25
 1 69:1                                                   advantage 69:8; 74:4,19;         appearances 76:16
 109:24; 28:5; 42:12       7367:19                        77:10                            Applause 15:5; 25:6; 36:7;
 11 71:17                  753:12; 45:15                  advisor 5:4; 7:22                38:3; 53:7
 1115 10:14                7647:18                        advocacy 70:2                    apple 36:23
 114,00071 :7              7868:24                        advocate 64:25                   appointed 5:22; 26:19
 12 13:4; 39:3,9           7:0080:18                      advocates 37:5; 64:19            appointment 72:9
 13043:25                                                 affairs 40:21; 78:19             ap~reciate 2:21; 37:25;
 1428:17                   8                              affect 33:4                      75:9; 79:6
 1519:5,9; 20:11; 28:2;                                   affected 60:23                   appreciation 78:24
 42:18,24,25               8 28:5; 72:15                  affixed 81:16                    approach 54:19; 56:20;
 1635:6                    8547:8                         affluent 31:1                    59:1; 71:14
 1742:13; 58:13            8671:20                        afford 25:25; 30:16; 31:5        approached 10:14; 70:17
 18-month-old 75:7         8847:20                        aialn 27:22; 37:9; 38:1,2;       approaches 11:11
 18560:5,24                89109 1:0                      7 :23; 76:12                     appropriate 25:12
 194535:2                                                 against 37:2; 48:13              appropriately 32:23
 1950 28:17                9                              a¥e 15:17; 17:13; 19:5;          approved 36:13,24
 195628:9                                                 2 :23; 28:1; 69:2; 71:4          approximately 20:14; 33:7
 1960s 56:13                                              agencies 12:14                   area 2:15,23; 10:10; 11:22;
 1991 53:25                9070:10
                           9000 67:12                     agency 54:6; 67:1                34:25; 48:24; 53:1; 55:4,9;
 199226:14                                                a¥enda 6:14; 8:3; 9:5;           56:3,5; 57:10
 199467:9                                                 3 :22; 61:25                     areas 5:18; 55:2; 57:22
 199570:8                  A
                                                          ages 35:5                        aren't 21:1
 199628:10                                                agonized 34:16                   arise 20:17
 19971:62; 81:18           abllHy 24:2; 55:23
                           able 4:11; 37:6; 52:6          agree 44:14; 59:2,18             arm 79:16
 199877:2                                                 agreed 39:2,4; 45:22             arms 35:8
 199977:2                  above 71:19
                           absence 22:1                   agreement 59:22,23; 60:11        around 42:11,24,25; 43:2,21;
                           absent 31:14                   agrlcuHure 58:15                 44:16; 64:17; 68:24
 2                                                        ahead 6:14; 37:4                 arrive 7:5; 52:6
                           absolut~    38:13; 51:22
                           absorb     :6                  aid 58:7                         arriving 29:10; 77:8
 229:25                                                   aide 26:22                       arrogance 27:15; 29:18
 20 7:24; 21:20; 29:4,6;   abuse 13:12; 18:19,21;
                           39:21,21; 67:20                aim 16:7,25; 17:8                article 34:9
 35:16,16; 42:18                                          aisle 12:22                      ask 30:13; 31:8; 63:12;
 200 35:13; 60:7; 61:2     Academy 44:1; 47:6
                           accept 64:22                   alcohol 55:4,18; 59:8            78:17
 2000 7:7; 70:11                                          all-time 71:15                   asked 7:13; 26:8; 28:4;
 22 35:6                   access 56:11; 78:11
                           accommodate 29:16; 30:5        Alleghen~ 10:5                   34:12,15; 35:21; 44:18;
 22035:4                                                  Allen 27: 5                      62:3,24; 63:2; 73:6,18
 2472:25                   accommodates 29:3; 34:1
                           accomplish 22:9                allies 35:8                      asking 44:12,12; 48:15
 25 29:18; 60:20; 61:3                                    allocations 60:12                aspect 60:14
 25054:4                   accorded 35:23
                           Accordin~ 27:12; 71:18         allowln374:9                     assessment 16:8
 2735:15                                                  Almon 60:15                      assets 57:7
 28 21:7; 43:18            accounta ility 14:19
                           accrued 21:2                   Almond's 49:2                    assistance 22:8; 79:6
 29 1:0                                                   almost 28:19; 30:9; 47:15        assisting 26:8
                           accumulate 20:23
                           accurate 30:8; 81:13           al ne 30:6; 31:16; 43:8          associat 6:16
 3                         accused 2:8                    alOne 45:25; 62:20; 65:19;       ASSOCIATION 1:6;
                                                          72:1 ; 78:5                      2:6,16,25; 4:12; 15:8; 26:3;
                           achl ved 62:18
 30 42:18; 66:19           achieving 4:21; 8:8            Alps 35:7                        40:10; 44:2,2; 79:22
 31 28:19                                                 already 15:18; 22:15,21;         assuming 14:17

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                              Index 1
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                             TUESDAY, JULY 29, 1997

 assure 7:9; 25:7                  23:2; 24:10; 74:21                52:4; 54:8; 58:25; 60:12;        79:21
 at-home 13:2                      benefits 5:12; 15:12;             68:13; 80:7,20                   centers 14:15; 36:18,20;
 at-risk 65:21                     16:2,8,21; 17:20,25; 18:22;       buslnessed 64:17                 67:24,25; 78:6
 Atlantic 34:7                     19:11,21; 21:1; 23:12,21;         busses 36:17                     central 6:13; 34:10
 attach 40:1                       24:7; 31:2                        butt d 48:13                     century 7:7
 attachment 39:24                  beset 57:18                       buy 32:23; 75:5                  CEO 31:9,13; 35:25;
 attacked 35:12                    Best 3:7; 4:12; 24:11; 31 :20;                                     48:8,11,18; 50:8,18; 52:6,17
 attainm nt 18:9                   43:17; 64:18; 69:6; 73:2;         C                                CEOs 31 :12; 50:10,18
 attempt 35:16                     74:19                                                              certain 55:13; 69:17; 74:11
 attention 6:3; 12:10; 56:16;      better 5:17; 57:17,21; 63:8       Cal 11:13                        certainly 2:16; 37:19; 77:9
 74:13,15                          big 46:11,11,22; 71 :23;          calculable 32:1                  certificate 63:11; 81:1
 attentive 25:23                   72:20; 74:17                      calendar 77:2                    certified 10:21; 81:6
 attire 80:20                      bill 12:25; 69:21; 74:5; 76:5     calendars 52:16                  certify 81:7
 attorney 13:22; 54:11             billion 9:7; 33:6,8,13; 48:25;    California 15:24                 cetera 55:22
 attract 11 :16                    49:5                              call 34:17; 36:17; 44:11;        chairman 2:5; 3:2; 5:20;
 audience 25:10; 73:14             biological 15:22; 17:1            56:18; 60:17; 61:21; 63:13;      26:20; 37:11; 53:17;
 August 42:13                      bipartisan 47:1; 60:15,16         71:10,11; 75:14; 79:15           59:12,18; 74:8
 Australia 44:15                   birth 17:12; 20:9; 36:22;         called 44:17; 55:4; 66:3;        chairpeople 54:8
 authorities 76:7                  45:13                             67:6; 69:9                       chairperson 54:9
 availability 80:5                 births 28:20; 45:17               came, 42:22                      challenge 37:4; 74:24
 availabl 3:11; 29:24; 50:6;       bit 14:19; 27:21; 42:1; 53:13     campaign 3:9; 16:13;             challenger 53:13
 57:8; 67:16; 68:7; 73:25          block 33:2; 49:9; 62:21;          37:13,2f; 42:5; 43:18; 51:13;    challenging 36:10
 average 30:1; 58:13               63:10,12                          67:9                             Champs-Elysees 35:2
 Award 11 :14; 14:13;              Blue 9:9; 76:19                   campaign's 3:19                  chance 3:5; 7:8; 79:9
 63:9,12,14; 64:22                 board 9:8; 13:16; 34:5;           can't 53:24; 55:18; 58:4;        change 29:13; 31 :14; 37:6
 awards 61 :25; 62:21              46:10; 63:21                      60:9; 71:22                      changes 20:17; 21:8
 aware 25:8,19                     boarding 56:24                    candidate 47:19                  characterize 36:14
 awar n ss 8:14; 37:17,19;         Bob 54:18                         cap 60:20                        check 52:15
 41:22; 42:6; 63:16; 65:25;        bodies 35:16,21                   capital 8:21                     cheerleader 41 :21; 53:9
 77:12                             body 15:15; 21 :22; 53:11         capped 60:6,25                   Cheyenne 72:14
 away 47:25; 52:11,19              Boeing 31 :11                     card 69:18; 70:1822;             chief 26:22
                                   bond 40:1                         71 :7,22; 72:4; 73:4; 75:22;     child 3:4,8;. 5:21; 8:19,21;
 B                                 bonding 39:24                     76:1,6,7; 77:23                  9:25; 10:5,;:::1; 11 :2,7;
                                   bones 38:24;                      Cards 68:20,21,22; 69:11;        12:7,11,13,14,15; 13:1,12;
 babies 7:3; 29:1; 69:9            41:5,12,13,14,17; 53:10           71 :2,7; 72:11; 76:25; 77:2      14:10; 16:11,12; 17:9;
 Babies' 6:18; 28:25               bonnet 80:21                      Care 5:21; 8:19,21; 9:25;        18:1,3,13,19,19; 23:4;
 baby 13:5; 67:14; 72:12;          book 45:25,25                     10:21; 11 :2,3,6,7,21;           26:19,21,24; 27:6;
 76:a-; 79:16                      Books 45:24; 67:16                12:7,10,11,13,14,15,17,18,23;    28:15,16,21; 29:7,24;
 back 20:21; 37:11; 38:1;          boost 71:23                       13:1,2,5; 26:19,21,25; 27:6;     30:2,14; 31 :4; 32:3,21;
 41 :2,4; 58:17,22; 61 :7; 67:7;   Booth 26:6                        28:15,16; 29:7,24;               33:1,6,19,23; 36:2; 37:12;
 74:23; 76:3; 78:23; 80:21         born 7:3; 28:9; 77:1              30:2,6,14,15,17; 31 :4; 32:4;    39:6,11,14,21; 40:17; 42:5;
 background 7:20; 29:11            borrow 63:25                      33:1,6,19,23; 36:2; 40:2;        43:20; 46:6,6,8,14,15,16;
 balanced 47:13                    bottom 9:16; 58:9                 41 :9; 43:20;                    49:19,21; 50:4,5; 54:25;
 bang 42:15                        Boulevard 1:15                    46:6,6,8,14,15,16; 48:23,24;     55:20; 63:19,20,23;
 Bank 5:15,16; 26:16               boundless 7:5                     49:19,21,21; 50:5,6;             64:2,4,18; 65:2,4,21,22;
 banks 12:2                        Boy 58:23,23; 63:24               58:9,10,12; 61:8;                66:5,7; 67:13,15,18; 69:3;
 Barry 42:19                       boys 35:4,4,15                    63:19,20,23; 64:2,4;             72:7; 77:1; 79:20
 Barts 77:17                       brain 27:4; 31 :21' 42:23;        65:2,4,7,22; 66:5,7; 67:18;      child's 2:12; 15:23;
 base 35:18                        43:1,19; 63:20; 64.:5,8; 73:19    78:4; 79:21                      17:2,11,17; 18:4; 22:20;
 based 13:11; 16:15; 70:3          brains 6:18; 28:25                career 26:17                     23:4,5; 24:17; 37:25
 basic 16:6                        Branch 5:7                        carefully 19:16; 35:22           child-centered 32:20
 basis 2:13; 51 :5; 52:5;          break-even 21:20                  caring 12:6                      childhood 3:16; 4:3; 5:13;
 54:25; 60:16                      breaking 32:10                    Carlson 53:16,17; 59:19          8:15; 9:12; 10:4,6; 12:25;
 baton 52:22                       brief 78:17                       Carlson's 60:21                  15:10,13,16,20; 16:9,12;
 battl 37:1                        briefly 73:12; 78:9               Carnahan 45:1;                   17:13; 23:24; 25:19; 27:2;
 Bea 42:20,21; 64:22,22            Bright 64:15; 66:3,8              69:12,16,21,23,24                28:12; 32:6; 36:18; 40:23;
 bears 39:10                       brilliant 34:8                    Carnegie 5:5; 6:12; 9:3          42:17,23; 45:4; 61 :15; 62:25;
 beat 37:2; 46:19                  bring 68:14                       carol 72:15                      63:17; 66:2; 67:24; 68:12
 became 26:4                       bringing 58:25                    Carolina 6:8; 9:23; 45:17;       children 2:11,20122; 3:18,24;
 bee me 57:4; 66:18                broad 7:16; 56:5; 62:10           65:17,18                         4:22; 5:17,23; 6:4,14; 7:6,19;
 bec mes 45:10                     brochure 43:13,13; 46:7,15        Carper 52:23,25                  8:3,24; 9:5,14,21; 10:12,16;
 bef re-entitled 81:9              brought 35:4; 54:7; 59:21         cartoon 79:11,19                 11 :12; 12:19,24; 13:12;
 began 8:11,13; 79:15              Bruce 27:3; 28:24; 45:25          cartoonist 79:18                 14:8,25; 15:4; 16:9,22;
 begin 2:3; 5:25; 17:12;           buck 45:15                        case 20:15; 21:18; 45:7;         17:14,15,19; 18:8; 19:2,5,8;
 25:17; 27:17                      budget 11:12; 13:24; 31:4;        54:8; 61:3                       20:10,25; 21 :2,6,6,9; 22:7;
 beginning 3:2; 13:25; 40:20;      33:7; 36:13; 47:13; 51:17;        cases 20:22                      23:2,7; 24:10,12,12,16,21;
 59:21; 71:5                       59:22; 60:11                      Castle 37:14                     25:3; 26:2,4,7,18;
 beginnings 33:5; 64:15;           budgets 13:20                     catechism 25:21                  28:10,18,21; 29:4,4,7,10;
 66:3,8                            build 9:20; 11 :25; 12:6; 14:7;   category 60:25; 62:13            30:5,6,22; 31 :2,20; 32:4;
 begins 78:3                       30:24; 34:1; 68:1                 causes 59:11                     33:23; 35:23; 36:6; 37:18;
 behalf 3:17; 26:2,7               building 8:6; 13:21; 56:24;       cautious 34:11                   39:3; 41 :9; 44:21; 47:5,17;
 behavior 20:18                    62:21; 63:8,10,12                 cavalry 42:21                    49:1; 53:24; 54:2,13; 55:6,18;
 behavioral 27:14                  builds 13:6                       CCR 1:24                         57:8; 58:1,10; 60:12; 61 :2;
 behaviors 23:16                   built 58:20                       CD 48:4                          62:2,6,14,17,19,24; 63:9;
 behind 70:21                      bulk 55:5                         Cecil 67:22                      64:25; 66:24; 67:9,12; 68:1;
 beli ve 11 :8; 56:8; 57:15;       bully 46:12                       Cel bration 80:12                69:1,5; 70:4,10,14; 71:16;
 71:14,23,24; 74:18                bus 57:15                         Celeste 26:6                     73:1; 75:2; 79:12,20
 below 58:13; 65:5; 78:7           Business 5:21; 9:25; 26:21;       Cent r 3:7,21; 4:1; 26:19;       childr n's 4:17; 5:7; 6:23;
 benefit 19:24; 20:2; 21 :25;      29:2,18; 31:17; 33:19; 44:10;     42:16; 47:24; 50:5,21; 77:19;    7:24; 8:16; 11 :25; 21 :14;


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                          Ind x 2
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                          TUESDAY, JULY 29, 1997

26:22; 47:4,9,13,20,22;          compare 4:11                    34:23; 42:11; 44:9; 57:9;         70:21
65:12; 71:10                     compared 19:5,10; 22:13;        69:3                              dem nstrated 13:13
children. 58:22                  23:9; 68:25                     counts 12:17                      dem nstrates 15:15
Chiles 40:21; 41:4; 63:15,18;    c mpenssted 30:5                County 10:5; 81:4,17              dem nstratlng 62:8
64:11                            c mplem nt 68:15                couple 20:4; 43:10; 46:22;        denying 47:25
Chiles's 64:9                    c mplete 24:13; 71:22; 77:5     52:7                              d part 64:13
Chinese 44:12,12,13              completed 36:13                 coupled 12:5                      Department 13:24; 44:17;
ch Ir 25:20; 38:15               completes 7:10                  courage 33:16                     54:5,13
choose 12:12                     component 62:13; 80:14          courageous 34:13                  departments 77:7
Chrlstln 66:1                    components 67:11                course 6:15,25; 39:1; 41:11;      dependency 39:21
Christy 41 :13                   comprehensive 3:24; 7:19;       73:20,21; 75:6                    depending 23:14; 24:17
chr nfcle 3:6                    8:17; 9:5; 14:15; 24:20;        court 54:10; 55:5                 depicts 79:11
Chuck 78:20; 79:3                32:11; 46:6; 49:24; 50:3;       cover 9:21; 48:22                 Deputy 77:18
cigarette 61:6                   51:1; 52:8; 62:16; 66:2;        covered 14:22; 43:6               design 8:3; 70:18
circuit 60:14                    67:25                           cows 36:17                        designated 65:23
clti s 8:12                      compromise 17:2; 22:20          cracks 78:12                      designed 16:3,25; 22:7
CHizen 11:14; 14:13; 33:13       compromising 15:23              crafting 7:1                      designing 4:6
City 44:23; 70:3                 conception 15:17                crazy 45:6                        designs 17:7; 25:1
claim 26:1                       concern 59:20                   create 9:5; 75:1                  despite 17:22; 18:25; 68:22
CLARK 81:4,17                    conclude 23:18                  created 4:2,4; 11 :15; 43:11;     detachable 70:23
classes 21:5                     conclusion 36:11; 73:17         66:23                             detail 2:15; 46:2,3
classr    m 36:16                conduct 80:7                    creates 31 :23                    develop 9:11; 28:25
clear 27:3; 32:8,9; 64:20;       conducted 3:21                  creating 37:23                    developed 34:14; 68:25;
66:25                            conference 42:8; 46:8;          creative 8:6; 10:7; 56:17         69:10
clearly 32:13; 39:10; 53:10      48:12,19,23; 60:19; 61:9        credentials 27:1                  developing 7:18; 8:4; 12:11;
Clemente 78:18                   confirms 22:18                  credH 12:1; 71:22                 14:13
clients. 45:8                    congratulate 65:11              credHs 11 :19,24                  develo~ment 2:12; 8:17;
clinical 4:25                    congratUlating 63:11            crime 39:19                       9:3; 11:23; 13:7;
cllnlca 71 :19                   congratulatory 70:16            criminal 18:16; 20:2,3; 21 :16    15:10,16,21,23; 17:3,18;
cl se 7:24; 76:18                Congress' 47:21                 crisis 66:18                      18:3; 22:20; 23:5; 24:17;
cl sed 31:7                      Congressmen 60:18               criteria 17:15                    40:23; 42:24; 43:1,19; 57:19;
cl sely 3:7; 46:9; 47:22         connected 39:16                 crHlcal 2:12; 39:8,12,25          62:5; 64:8; 77:17
cl sing 31 :15                   conscience 61:20                critically 76:12                  developmentally 29:5,8
co-chair 64:14                   consequence 55:24               Cross/Blue 9:9                    devised 58:8
co-workers 40:7                  Consequently 21 :19             crowd; 73:18                      devoted 4:2; 40:22
cobble 51:9                      consider 31 :8; 32:19; 69:17    crucial 15:20; 25:4               dialogue 33:17; 36:11
coffers 45:19                    considerable 24:1               crystal 63:10; 76:4               Dick 26:5
cot under 37:14                  consistent 17:24                Crystal. 76:10                    didn't 30:10; 40:16; 73:15
cognitive 16:5; 17:17; 18:2      constituency 46:13; 76:14       CSR 81:23                         died 35:6
Chen 44:18                       constHuents 27:20               cumulative 20:19                  DI4tgo 28:5
cohostlng 48:19                  constHutes 81 :13               current 33:7                      differ 17:6
collab rating 70:5               context 26:10                   currently 5:10; 7:22; 23:11;      difference 47:23; 72:21;
collab ratl n 66:6               continue 46:20; 48:2,3;         24:4; 31:3; 65:17                 74:17
collaborative 66:15              53:1; 61 :20; 79:25             cutbacks 11 :13                   different 28:23; 29:1
collab rators 35:11              continued 24:21; 67:23          cutting 47:13                     difficult 34:12; 36:25; 61 :4;
colleague 6:12                   continuum 62:10,12,15,20        cycle 32:10                       63:1,6
colleagu s 14:23; 15:12;         contrast 4:11                                                     dignity 35:24
75:4
coli ctively 2:24
                                 contribute 65:7                 o                                 dilemma 33:23; 36:4; 57:6
                                 contributed 2:19                                                  direct 13:18; 73:24
C I rad 5:1520; 6:7;             contributes 67:19               darkened 73:15                    direction 14:5; 61 :22; 81 :12
11:19; 30:13,16; 64:14,18,21     contributions 11:20             data 30:8,10                      directly 39:16
C I rad 's 26:20; 30:17          Control 77:19                   date 16:15                        director 5:9; 37:13; 77:18
C lumbla 5:1                     controlled 32:21                daughter 75:7; 79:14              directs 5:2
c mlng 30:6; 48:5                controversial 53:22; 55:1,4     DavId 6:22; 72:15                 disadvantaged 17:14
commence 3:1                     convened 40:10                  day 35:2; 77:9; 81:18             disappear ~5:13
c mmended 63:5                   convenient 50:21                dead 35:13                        disappeared 25:16; 49:2
comments 5:25; 25:15;            convert 53:12                   deal 3:13; 36:4; 54:13            disappointing 49:1
26:12; 28:24; 53:15,20;          converted 38:15; 41 :21         deaH 54:2                         disaster 30:19
74:11; 76:3                      convincing 65:1                 Dean 41:11; 59:16,17; 61:16;      discovered 29:4,22
C mmlssi n 5:21; 26:21;          coordinated 24:19               67:8,21                           discovery 7:2
29:2                             copy 72:17                      debate 26:14; 51:17               discuss 53:5
commissioned 30:12               cord 35:17                      decide 58:11                      discussion 14:18; 61 :13
C mmissl ner 10:25               Cordero 77:18                   decided 44:8                      discussions 39:1
commHment 2:21; 6:17;            corporate 9:12; 68:14,17;       decisions 27:16; 28:12;           disease 69:3; 77:19
31 :6; 62:8; 63:7; 73:7; 75:11   78:19; 80:9                     34:4,13; 47:10; 58:3              disincentives 58:19
committee 60:19; 61 :9;          Corporation 5:5; 6:13; 9:3      decline 20:1                      dismal 70:10
80:15,19                         corporations 12:2               decrease 10:15                    dismally 68:25
communicator 27:8; 37:17         Corrections 13:24; 56:18,19     dedicated 34:23; 37:23;           disputes 39:4,5
communltle 3:16; 36:19,21;       correctly 57:12                 46:13                             disseminate 45:19
50:2; 52:3,7; 64:17; 68:4        cost 32:5; 65:7; 73:19; 78:6    deemed 29:5,7                     disseminated 43:3
Communltv 5:6; 9:12; 43:12;      costs 5:12; 15:12; 16:2;        Defense 44:17                     distribute 44:8
51 :5,5; 52:4; 65:24; 67:11;     19:19,25; 20:16,20; 21 :12;     deflcH 47:17                      distributed 4:7; 43:14,21
77:17; 78:5                      24:6; 30:13,15; 55:19; 58:14;   defined 32:13                     distributing 78:15
communlty-based 66:16            64:2; 67:12                     delighted 14:12                   distrlbutl n 43:23; 44:4
community-by-communHy            couldn't 30:8,11; 56:15;        deliver 30:13,15,22               diverse 62:10
52:5                             63:4                            d mocracles 34:14                 diversity 17:22
companies 50:10; 57:21           counties 65:18; 66:19; 67:24    demographic 28:14                 doct r's 72:9
companl n 46:1                   c untrles 69:1                  demographically 29:13             does 17:24; 21 :19; 23:5;
company 70:5,21                  country 2:11; 11 :9; 28:21;     demonstrat     19:18; 32:1;       37:3; 44:9; 60:13; 73:18


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                        Index 3
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                         TUESDAY, JULY 29, 1997

 doesn't 22:9; 49:5; 53:4;        72:1; 73:4; 74:1; 77:11         very ne 6:1; 25:7; 48:15        family's 17:16; 35:3
 61:10                             ffeets 29:16                   veryone's 74:13                 family-friendly 50:11
 doing 14:24; 19:18; 41:24;       efficiency 32:5                Everything 41:3                  family-to-family 36:15
 49:14",14; 50:10; 77:24          effici nt 58:15; 65:9           verywhere? 73:20                far 2:23; 24:12; 34:6; 60:22
 dollar 3:11,12,12; 9:7; 72:24     ff rt 3:15; 8:13; 21 :15;      vidence 15:15,18; 16:1;         fare 57:15
 d liars 9:22,24; 10:20;          53:19; 54:15; 64:16            25:15                            FAS 59:11
 11 :17; 12:5; 32:7; 33:8;        efforts 3:19; 5:16; 9:14;      examine 5:22; 19:2; 22:25        fascinating 13:14
 52:2,3; 55:19                    24:24; 63:16; 68:22; 75:18;    examining 16:1                   fast 7:15
 domains 18:1                     76:2                           example 9:18; 10:13; 11:24;      father 28:22; 35:3; 67:8;
 donate 76:23                     eight 63:4                     12:24; 18:4,13; 19:2,7;          75:6
 don 2:15; 12:8; 23:19;           either 24:16                   21 :3,15; 22:10; 60:4; 78:2      father's 35:1
 29:22; 47:1; 49:3; 50:17;        elected 33:12                  examples 7:17; 14:21; 20:4;      fathers 40:2
 51 :7; 52:8,13; 54:24; 55:17;    electoral 31 :17               22:22                            fault 22:3
 59:14                            elements 12:10                 exceed 19:19                     favor 47:16
 double 66:23                     elephant 25:13                 exceeded 20:20; 21 :12;          fear 35:19; 55:11
 Doug 4:23; 5:14; 38:5,13;        eligible 64:3                  78:10                            February 27:2; 42:3; 48:12
 51 :22; 64:19; 68:10             Ellen 6:16                     exceeding 78:16                  federal 52:2,9,14; 58:7,17;
 Doug's 74:11,23                  Elmira 20:6; 22:10             excellent 57:2                   59:22
 dovetailing 48:11                eloquent 64:25                 except 52:19                     feds 58:11
 down 35:8; 47:17; 59:10;         else 49:19; 52:18              exception 31 :10                 feel 57:8
 81:7                             else? 37:3                     exceptionally 15:2               fellows 80:9
 doz n 17:4                       elsewhere 57:22; 59:6          excitin~ 68:9                    female 27:13; 71 :12
 Dr 5:10,25; 6:1; 27:3,4;         embody 27:14                   Executive 63:19,20               feminine 38:6
 31 :21; 39:10; 45:25             emerge 17:24                   exemplify 62:16                  fetal 55:4,18; 59:8
 draw 7:20                        emerpency 64:13                exist 17:~3                      few 3:6; 7:17; 12:8; 14:21;
 drawing 9:8; 13:16               emotional 16:4; 18:2; 27:9;    existing 24:25; 33:6             47:6; 53:15
 drawn 6:20                       38:6; 71:25                    expand 11:11; 13:10; 24:24;      field 55:16; 56:18
 drinks 55:13                     emphasize 7:16                 32:16                            fifth 78:3
 dr p 67:19                       employee'S 36:1                expanded 8:5,15; 12:6            fight 41 :7,8,10
 dropping 35:8                    employees 31 :13; 64:3         expansion 8:22; 36:16            figure 51 :4; 53:25
 drove 54:12                      Employers 31 :8,15; 64:2       expect 31:6                      finalization 67:4
 drug 39:21                       employment 29:14; 31:12        expectation 56:11                finalize 67:3
 drum 46:19                       Enclosed 76:9                  expectations 78:10               finalized 60:11
 du 26:4                          encourage 66:5; 75:19;         expenditure 32:12                finally 18:17; 35:21
 due 20:3; 21 :15; 71 :11         77:10; 80:9,17                 expenditures 20:3                financed 10:3
 dug 75:20                        end 16:16; 41:16; 53:20;       expensive 45:14                  financial 57:7; 72:21
 dumb 51:12                       62:12,14                       experience 11 :25; 79:13         financially 33:21,24
 During 2:5; 14:18; 20:8;         Endowment 10:3                 experienced 19:3,8               Financing 5:21; 8:6;
 55:12; 71 :8; 77:8               energy 7:5                     experiencing 66:18               10:8,11,23; 11:10; 13:14;
 dynamic 62:11                    engagement 3:9; 16:13;         experientially 33:22             14:4; 26:21; 63:22
                                  37:12,21                       experimental 17:5                find 4:10; 30:8,11; 45:18;
 E                                Engler 33:15; 75:8             expertise 68:14                  49:25; 51:9; 54:7; 74:12
                                  Englishman 34:8                ex~rts 3:22; 4:20; 45:4;         finding 17:24
 earlier 68:11                    enhance 10:11: 17:10           62:25                            findings 16:15
  arliest 2:20                    enhancements 30:24             explanation 32:18                finished 2:24; 43:15; 44:5;
  arly 3:16; 4:3; 5:12; 7:10;     enloy 76:9                     explore 11 :9; 50:16             48:4
 8:14; 9:12; 10:4,6; 11 :15,21;   en oyable 61 :24               exploring 8:5; 56:23             finite 32:8
 12:25; 13:19; 15:10,13,16;       en ightening 36:9              exposed 15:18                    first 2:7,9,10; 3:10; 5:14;
 16:2,8,12,12,20,24; 17:13;       enormous 6:5                   expressed 69:14                  11 :5; 13:11,17; 16:20,23;
 19:12,16; 21:1; 23:10,24;        enough 17:19; 19:12; 21 :7;    expressing 78:24                 24:1; 25:9; 38:4; 39:6,11,17;
 25:4,19; 27:2; 31 :23; 32:6;     35:12; 40:16,17; 72:6; 76:24   extensive 68:2                   40:13; 41 :3,4,9; 42:17;
 36:18; 37:25; 40:23;             enterprise 11 :21              extent 58:6                      43:16,20; 53:18,23,24; 54:2;
 42:17,23; 45:4; 60:16; 61:15;    enters 39:7                    extraordinary 27:7; 53:19        56:7; 58:10; 62:3; 64:21;
 62:24; 63:17; 66:2,14,15;        entertain 25:11                                                 66:11; 70:1; 71 :5,9; 77:23;
 67:23; 68:12                     Entertainment 37:15; 80:13     F                                78:17; 79:15
 earmarked 48:25                  entire 40:22; 51:2                                              first-time 20:7
 earn 19:23                       entitlement 33:6               faced 11:12                      first-year 39:24
  asier 41:23,24; 43:4; 75:19     entitlements 33:3              facing 51:17                     Fisher 48:7
  asy 72:8; 76:20                 entry 35:3                     fact 18:25; 29:20; 37:25'        five 16:18; 49:6; 59:24;
 eating 13:20                     envelopes 76:25                38:14,22; 58:16; 63:2; 76:1      60:23
 eats 55:13                       environment 31 :23             factor 21 :12                    five-year 10:4
  conomic 18:11; 19:17;           environmental 15:22; 17:1      factors 15:19; 23:1              flock 25:25
 30:19; 57:19                     equally 4:19                   failure 31 :22; 54:24            Florida 6:7; 9:25; 12:7
 economics 30:11                  equitable 65:8                 fall 62:20                       Florida's 63:20; 64:5
  conomist 5:8                    era 11:2                       fallen 78:12                     focus 3:1; 7:23; 10:10;
 economy 9:17; 12:5; 51:18        erratic 30:4                   falls 38:8                       15:11; 54:17; 56:15; 57:3;
 Edgar 64:24; 65:10,13            escaped 35:15                  familiar 71:13                   58:1; 59:8
 editorial 79:10,11,18            especially 7:25; 61 :19        families 2:22; 3:25; 5:17;       focused 2:6; 5:16; 6:4;
 educar 32:7,17                   essential 11 :5; 14:5          8:7; 10:22; 12:3; 14:6,7;        79:24
  ducate 39:2                     establish 14:14                16:22; 17:19; 20:10;             focusing 8:7; 23:3
 educated 9:15                    established 2:14; 8:20; 10:1   21 :24,25; 22:7,8,13,14,14;      follow 4:8; 34:2; 71:7
  ducating 37:24                  estimated 20:12                23:8; 24:21; 25:3; 45:4,6;       follow-up 24:21
  ducati n 8:15; 10:6; 11 :21 ;   estimates 72:22,23             47:16; 50:7; 54:13; 62:19;       followed 17:18; 20:11; 21:7
 12:12,25; 18:10; 19:4; 29:14;    evaluating 23:24               63:9; 65:5,9; 66:17;             following 4:14
 32:6; 36:19; 49:22; 50:7;         vening 80:11                  67:2,14,17; 68:1                 follows 32:21
 55:22; 56:6; 65:24; 66:20        event 80:20                    family 10:21; 11:7,19;           force 9:13,16; 18:14; 27:24;
  ducational 18:7,9               Everybody 40:19; 43:7;         14:11,15; 29:15; 34:19;          28:18; 29:17
  ffeet 23:17; 61 :5; 76:15       53:12; 79:4                    36:20; 50:4,21; 66:25; 67:15;    for going 81 :12
  ffective 4:21; 10:9; 12:2;      everybody's 48:16              68:2; 71:13; 74:23               For ver 3:11; 43:16


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                      Ind x 4
REPORTER'S       TRANSCRIPT          OF PLENARY       SESSION                                        TUESDAY,     JULY 29, 1997

 forget 72:9                     going 3:18; 4:20,24; 7:20;        70:5,17,21; 73:7; 74:5,14;         h tel? 79:21
 f rmati n 54:12                 36:10; 37:6; 40:18; 42:3,4,13;    75:10,18; 76:23; n:17; 79:4        h ur 30:1
 former 75:4                     44:4,14,16,21; 45:20,24;          Hallmark's 74:10; n:10             H use 42:8; 46:8
 f rmula 58:8                    46:7,14,16,19,20,22;              hand 27:18,24; 28:1; 81:16         housing 5:18; 10:17; 12:1,3
 F rtunatelv 2:24; 31:17         48:2,5,7,13,16,22; 49:20;         handout 16:17                      hovered 30:1
 forward 524; 78:22              52:10,19; 53:12; 55:1; 57:25;     hands 28:2,3,6; 75:8               hovers 68:24
 fought 41 :5,6                  58:2; 60:8,25; 61:5,6,9,20,21;    handwritten 72:17                  Howard 41 :11; 67:8
 fund 54:4                       64:21; 68:19; 70:20; 72:8;        hal)~n 48:11; 50:15; 60:18;        However 2:23
 Foundati n 5:3; 15:25;          74:23; n:24; 79:8,25; 80:2,4      74:18; 75:13                       Human 10:25
 33:18; 37:23; 40:3              Golden 45:24                      happening 46:18; 68:9              humbling 26:8
 f undati ns 7:23; 8:25;         gone 51:19                        hal)pens 39:6,7,8,11,17,25;        hundred 43:8,9; 45:16;
 9:7,11                          Good 2:1; 6:1; 15:6; 40:21;       58:11                              54:22,22
 f under 37:12                   42:15; 50:16; 56:22; 59:23;       happy 53:5                         hundreds 55:19
 four 7:16,22; 27:14; 29:21;     69:6; 74:20,20,21,25; 80:13       hard 58:23                         Hunt 41 :16; 65:14,25
 30:23; 42:10; 63:3; 71:8        gotten 27:5,8; 46:10; 72:2        Hardwick 78:20
 four-year-old 21:6              government 19:19;                 hasn't 43:2
 frames 10:17                    20:13,15,17,20,23; 21:12,23;      hate 46:23
 France 34:20,20; 35:24          22:2; 23:13; 29:15; 31:16;        haul 42:1                          I'll 57:10; 63:12
 frankly 57:7                    47:11; 58:7,17; 78:21             haven't 75:20                      I've 7:13; 10:9; 13:17;
 free 74:13                      GOVERNOR2:1,25; 5:22;             Hawaii 11:13; 59:25                14:16,21,21; 19:12; 22:21;
 freed 51:21                     6:2; 9:19; 10:2; 12:22; 13:22;    Head 5:3; 33:13,17; 36:16;         23:9; 24:3; 41 :16,25; 48:9;
 French 34:24; 35:4,9,11,15      15:7; 26:19; 27:10,25; 31:10;     37:2; 56:6,8,12; 66:6              79:13
 friend 40:21; 61 :19            32:18,25; 33:10,15,16,25;         headquartered 70:4                 IBM48:5
 friends 40:8; 76:17             36:8; 38:10,11,12; 41:6;          health 5:1; 7:21; 8:2; 9:20;       idea 11:24; 56:23
 front 42:16; 47:24              42:20; 45:1; 49:1;                10:18,20; 11:3; 17:9,17;           Ideal 71:4
 fr ntl rs 7:1                   50:23,23,24,25;                   18:18,20; 48:23,24,25; 49:21;      ideas 2:19; 4:5,14; 59:5
 fulfilling 26:9                 52:21,22,23,25; 53:8,16,17;       50:6; 58:9,10,12; 61:1,8;          Identified 17:3
 full 7:5' 16:16; 33:5; 56:21;   59:15,15,17,19; 60:15,21;          69:7; rra,   78:5                 identHles 15:19
 75:8; 79:11; 81:13              61:12,16,17; 63:12,15,18;          heaHhy 9:15; 11:18; 13:7;         IdentifY 17:15; 23:2;
 full-time 27:24,25              64:9,11,12,12,24;                  15:23; 17:2; 22:20; 45:4,6;       24:11,f5; 51:7; 54:1; 68:3
 fullest 3:5                     65:10,12,14,25; 66:1,12,13;        62:5                              Identifying 59:10
 fully 32:20; 33:18; 56:6,9      67:4,5,8,20,22; 68:5;              hear 3:18; 4:20; 7:7;             Ignorance 27:15,17
 fun 80:19                       69:24,24; 73:8; 74:2,6;            14:3,12; 22:21,22; 59:5; 73:3     lD.72:10
 functi n 39:14                  75:4,5,5,7,8; 76:1,5; n:14;        heard 13:17; 22:21; 39:10;        Illinois 12:8; 64:24; 65:4
 functl ning 33:18               79:3,13                            57:14; 61:14; 64:8; 69:16         immunization 54:21;
 functi ns 50:8                  governors 2:~7,18,22;              hears 71:13                       68:21,24; 69:8,19;
 fund 10:1; 11:16; 36:14;        4:4,8; 5:24; 6:/,25; 8:4;          heavily 34:18; 49:9               70:1,9,16,24; 71:5,11,15;
 56:6,9,9; 63:24                 9:1,10; 12:18; 14:7; 15:1;         heighten 8:14                     72:17,25; 73:4; 74:1;
 funded 32:20; 44:6; 48:5;       26:5; 27:10,19; 33:15,24;          Held 1:0                          75:10,16; n:19
 64:6                            34:6; 36:11; 41 :16; 48:9,18;      help 4:13; 7:9' 11:17; 12:15'     Immunizations 70:25;
 funding 9:22; 15:24; 33:5       49:6,13,17; 50:14; 53:16;          22:7,9; 24:5,15; 37:17; 40:12;    72:19,23; n:12
 funds 8:20; 10:16; 12:16;       56:4; 57:19; 58:20; 59:2;          44:25; 53:13; 66:8; 69:10         Immunize 75:14
 49:10,11; 51:10,16,20;          60:17; 61:13; 62:1,22; 63:3;       helped 60:2; 71:14                Immunized 69:4; 75:3
 52:9,11; 64:1; 65:15; 68:3      69:4,12,16,20,22; 73:10;           helpful 46:15                     Immutable 52:10,11
 further 9:11; 25:2              74:14; 76:13; n:22; 80:2,9         helping 52:16; 75:16              Im~act 22:16; 32:9; 43:19;
 future 6:5; 7:12; 9:16; 73:14   GOVERNORS' 1:6; 2:6;               helps 66:17; 74:22                47:24
                                 10:24; 15:7; 26:3; 40:10;          here's 29:22; 30:14; 72:5;        impaired 16:4
 G                               44:2; 50:13; 66:11; 79:22          73:18                             implement 19:13; 24:25
                                 governors-only 80:3,8,22           here. 44:7                        implemented 17:4,23; 20:5;
 gains 18:2,11,19; 21:13;        granted 49:9                       here? 26:15                       21:4; 24:7; 62:1
 32:2                            granting 33:2                      hereby 81:7                       Im~lementing 3:23; 4:6;
 gal 53:10                       grants 9:3                         hereunto 81:15                    23:20,23
 gap 31:6,16                     Graves 69:12,16,21,23;             hesHation 55:15                   Implication 21:22
 Gardner 26:6                    74:2,6; 76:6                       high 28:4; 71 :15; 76:7           Iml)ortance 6:5; 8:14; 13:18;
 gates 67:11                     graveyard 34:22                    higher 18~14; 19:22;              15:15; 16:23; 37:18; 63:17;
 gave 45:13                      great 4:13; 26:13; 33:20;          2124; 22:1z: 24:9; 27:21;         65:2; 75:9
 general 10:19; 13:22; 33:23;    37:10,17; 51:15; 52:21; 75:1;      57:16                             Im~rtant 12:10; 13:1;
 34:24; 63:24; 73:14             79:25                              higher-risk 22:13                 24:23; 47:9; 48:8; 50:12;
 G nerally 22:6                  greater 18:13; 21:15               highlight 16:20; 68:17            62:9; 76:13
 generate 20:24                  Greeting 68:22; 69:18;             highlighted 4:9                   Importantly 36:21
 g nerated 12:5                  70:18; 76:25; n:23;                highly 11:17                      Imports 57:11
 generous n:11                   80:15,19                           Hinds 10:3                        Impressive 2:14; 46:24
 George 41:12; 66:13             group 28:4; 31:12,13; 36:1;        HIPFA 10:14                       Im~rove 9:14; 12:23; 17:9;
 Georgia 6:7; 60:5               47:2,2                             history 29:13                     62:2,23; 63:8; 67:17
 G rmans 35:11                   groups 17:14; 65:22                hits 38:16; 43:9,10               improved 18:8; 20:24
 gets 40:17; 60:10,12            growing 9:13; 12:4,4; 13:9         hoc 30:3                          Improvements
 getting 12:2; 38:20; 55:11;     grown 67:14                        hold 35:7                         18:4,5,6,18,20; 21:17
 61:7; 71:20; 72:23; 73:9,23;    growth 2:13                        holistic 54:19; 59:1              improving 11:5
 75:2                            guarantee 59:9                     home 11:18; 13:4,12k15,24;        Impunity 33:11
 gifts 27:7                      guaranteed 3:4                     20:6; 28:22; 36:21; 00:20         inadequate 16:6
 Gilbert 6:16                    gubernatorial 6:18; 12:20          homelessness 39:22                Incalculable 31 :24
 givers 40:3                     guide 4:3; 14:24                   homes 11:7                        Incarcerating 56:1
 gives 60:6; 73:1                guy 26:24; 53:9                    honoring 35:3                     incentive 11:3; 67:1,17
 Glieres 35:7                    guys 48:13                         ho~ 7:5; 13:25; 32:16;            include 18:2; 23:1; 65:20;
 gl ba19:17                                                         51 :21; 60:10; 76:17              67:14
 glue 40:5                       H                                  h pefully 41:21; 42:13; 43:4      included 36:15; 75:22
 goal 64:17                                                         hoping 48:14                      Includes 13:1; 24:20; 66:19
 goals 49:4                      haH 3:11; 65:17                    h spital 45:13                    Including 17:7; 47:4
 G d 7:14; 44:6                  Hallmark 68:20,21; 69:11;          hospHality 6:9                    Income 12:3; 17:16; 18:14;

LAURIE WEBB & ASSOCIATES                 (702) 386-9322      Depo-Merge                                                      Index 5
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                        TUESDAY, JULY 29, 1997

 65:6                             50:2; 73:2                     39:7                            IHe 2:9; 5:17; 13:11; 16:23;
 Incomes 65:5                     InvHe 69:7                     kinds 57:18                     25:4; 31 :21 ,23; 34:4;
 Inc nalstent 30:4                Inv Ived 20:6; 38:19; 41:15;   King 34:7                       39:12,13,23; 40:4,25; 42:19;
 Increase 11:1,3; 12:17; 66:4     50:25; 55:11; 56:4; 75:15      Kmarts 45:23                    71:9; 74:22
 Increased 47:20; 71:17           involvement 6:17               kn wn 4:12; 38:23               life-I ng 7:11
 Increasing 12:13; 15:14;         1018:4                         knows 41:11,12; 45:2; 76:15     IHetime 13:3
 65:22                            Ironically 34:22               Krlnz 10:3                      light 65:2
 Incredible 44:7                  Irretrievable 31 :24                                           lilCely 6:21; 24:10; 47:19
 Independent 62:24                Island 6:8; 10:13,19; 60:1     L                               Linda 75:6,14; 76:5,8
 India 44:14                      isn't 28:23                                                    line 9:16; 25:9; 26:14
 Indicated 81 :10                 Issue 6:4 24; 26:4; 37:9;      Labor 5:9; 18:14                link 13:18
 Indlcatl n 64:10                 38:6,17,23; 42:16; 47:24;      lack 55:23                      linkage 55:25
 Indifference 55:11               62:9; 66:25                    lady 64:21                      list 44:3
 Individual 36:20                 Issues 2:19; 4:3,17; 7:24;     laid 34:21,21                   listed 19:12
 Individualized n:3               22:24; 24:19; 26:22; 40:25;    Lake 47:1                       literacy 67:15
 Individuals 64:16                42:10,10; 47:9,22; 65:12       large 16:10; 18:24; 31:9,13;    literal 2:10
 Industries 50:14                 Hallans 35:10                  55:23; 59:10,23                 little 14:18; 27:21; 30:20;
 Industry 29:19; 30:19            Hs 4:2,12; 9:4                 larrr 19:14; 21 :23; 24:8;      42:1; 53:13; 65:17; 71:17,21;
 Inefficient 58:14                Uself 78:25                    34:                             80:4
 Inexpensive 51 :25,25                                           larger-scale 24:4               lives 63:8
 Infancy 17:12                    J                              largest 5:15; 31:12; 32:25;     loan 8:20
 Infant 13:2                                                     35:25; 36:2                     lobbying 49:8
 Infants 11 :6; 13:8; 65:21,23;   January 4:18; 34:7; 53:24;     Las 1:15,0                      locar 8:18; 52:3; 65:19; 68:4;
 66:10                            71:6                           Last 3:10; 6:19.1 25:13,18;     79:10
 Infiltrated 35:10                Jay 6:22                       28:24; 36:24; ~:10,16;          locally 5:15
 Inform 25:10                     Jean 70:5,14; 74:7             51:19; 67:13; 68:16; 80:6
 Informatl n 4:5; 42:23;          Jersey 9:20; 50:25; 51 :3;     late 25:8                       lock-'em-up-thr w-the-key-
 53:14; 70:12; 71:18; 73:9,23     66:5,12                        later 2:13; 3:19' 17:12;        56:20
 Ingenuity 10:11                  Jim 41:16; 44:23; 64:24;       18:13; 31:24; 32:16;            Locke 31 :10; 50:23; 75:5;
 InRlal 61:2; 70:11               65:14                          39:14,14,22; 80:18              79:13
 Initially 18:12; 43:23           lob 35:6; 41 :22; 43:3,4;      latest 71 :18                   logical 33:20
 InHiatlve 5:4; 10:4; 13:17;      59:13; 63:5; 75:18             launched 7:12; 51 :13; 78:5     long 14:10; 17:19; 21:7;
 33:8; 36:15; 62:3; 64:20;        lobs 14:9; 41 :23,24; 58:24;   launching 46:15                 42:f; 43:2,18; 58:18; 75:17
 66:2,4; 67:18; 78:4              59:4                           laurie 1:24; 81 :6,23           long-term 6:17; 17:20; 31:5
 InHlstlves 30:3; 63:18;          Johnson 9:19,19; 44:5,5,9,9;   laws 8:18                       Longaker 14:12
 67:10; 68:12                     45:22                          Lawton 40:21; 41:4; 63:15;      longer 20:23
 Ink 60:10                        Johnson's 45:22                64:11                           1001C13:6; 33:3' 39:24;
 Inmates 57:13                    Johnsons 5:3                   lay 26:1                        43:16; 75:21; 79:9
 Inn vatl n 7:22; 11:8              oin 64:21; 69:7                                              looked 21 :3; 44:6
 Inn vatlons 8:16; 10:23;
 62:4                             loke 6:22
                                  Jones 4:23,25; 5:25; 6:1;
                                                                 lead 6:25; 10:15; 33:25;
                                                                 41:2; 52:20; 69:5
                                                                 leader 7:9; 37:9
                                                                                                 looking 5:24
                                                                                                 looks 76:14; 79:18
 Inn vatlve 63:22; 69:8           27:4                           leaders 51:7,8; 60:22           loosely 49:9
 Inside 26:18; 70:23              Jose n:18                      leadership 6:3119; 12:20;       loosened 52:9
 Insights 5:25                    Joseph 72:14                   54:7; 55:3; 64:14; 74:8;        Lord 34:5
 Instance 56:24                     our 26:4                     76:15; n:2O                     lose 58:15
 Instructl ns n:5
 Insurance 9:20; 10:20;
 48:25; 61:1; 78:7
 Insure 8:23; 10:5
                                  ludge 62:25
                                   udges 38:9
                                  Judith 4:23,25
                                  Judy 25:14
                                                                 leading 5:10; 64:10
                                                                 leads 31:16
                                                                 learn 25:24; 29:12; 30:22;
                                                                 59:22
                                                                                                 loses 54:24
                                                                                                 losses 31 :24
                                                                                                 lot 38:16; 42:14; 46:18;
                                                                                                 52:18; 54:16,17; 56:17,22;
 Insuring 49:4                    Judy's 25:14                   learned 3:23,25; 60:3           72:5; 73:19; 75:18
 Integrated 24:24; 49:23,24;      July 1:0                       learning 2:13; 7:11; 54:14;     lots 72:12
 50:21; 51:1; 54:14; 58:1;         ustlce 20:2                   69:15                           Lou 78:18; 79:4
 62:16; 66:16                      ustlfied 19:17                least 14:25; 33:9; 72:25        love 50:17,18
 intended 62:21; 65:8              ustify 19:12                  leave 35:13                     loved 57:1
 Intent 29:19                      uven.1e 59:11                 led 10:2; 11:13; 16:13          low 12:3,18,19; 22:15; 68:25
 Interdisciplinary 5:11; 15:25     uxtaposlng 26:10              ledger 58:3                     low-Income 12:1
 Interest 69:15; 74:19                                           left 28:8; 34:18; 35:15,17;     lower 18:15; 21 :16; 22:8;
 Interested 68:19; 76:24          K                              45:13                           27:24; 28:1,2,3; 63:4
 Interesting 4:10; 47:14                                         legacy 26:2,9,11; 36:4          lower-risk 22:13,14
 Interim 16:15                    Kaiser 9:18; 48:19             legislation 12:23; 13:6;        lowered 28:6
 Intersectl n 31 :18              Kaiser's 48:23                 70:12                           Lynn 4:23' 5:8; 25:14; 27:4;
 Intervene 17:11                  Kansas 69:12,21; 70:3; 74:3;   legislature 8:19; 11 :15;       31 :25; 51 :24
 interventi n 5:13; 11 :16;       75:13; 76:3                    12:21; 36:25; 65:1              Lynn's 25:15
 15:13; 16:3,9,21,24;                                            Leno 6:23
 19:3,8,13,15,16; 21:11;          Karen 44:23; 45:11;
                                  n:16,25                        less 22:16; 23:12; 29:25;       M
 22:1,11; 23:3,3,6,10,24;                                        30:18; 61 :7; 63:23
 24:18; 49:22; 50:6               Karoly 4:23; 5:8,10; 15:6;
                                  27:5; 31 :25; 51 :24           lessons 3:25                    magazine 42:9
 Interventi ns 17:25; 22:6;       keenly 25:8,19                 let's 27:17; 38:7; 42:1;        magnitudes 18:24
 24:22                                                           50:15; 79:1                     mailed 71 :2,6; rre
                                  keep 7:13; 41:2223; 46:19;
 Intimately 38:19; 41 :15         70:24; 76:10; 79:24; 80:21     letter 69:13; 72:4              main 44:4; 48:24
 Introduce 4:24; 69:20            keeping 6:3; 70:25; 72:18      Letterman 6:22                  maintaining 32:3
 Introductl n 78:13               kept 37:1                      letters 72:2                    malor 27:14
 Invest 12:3; 37:24; 58:5         key 16:18; 18:1; 21:22         level 8:18; 12:19; 78:8         make 25:3; 26:11; 27:16;
 inv stigating 5:12               kid 33:4; 49:4; 74:25          levels 16:5; 18:9,16            31:5; 34:12,15,17; 37:7;
 investing 32:2,3,6; 37:18;       kids' 61:8                     leverag 11 :20                  39:17; 40:6,16; 41 :23,24;
 65:2                                                            Levine 6:12                     43:4; 49:20; 50:1; 51:1,4,7;
                                  killed 35:16
 Investment 2:20; 21:1;           kind 46:24; 49:16; 51:11;      Library 44:1                    52:1; 53:20; 55:13; 58:2;
 32:7,9,10; 51:8; 52:1            55:10; 75:12; 76:3             license 8:18                    61:10,21; 65:15; 67:2; 68:12;
 Investments 8:23; 25:3;          kindergarten 29:10; 30:22;     licensed 11:4                   70:6; 72:9; 73:3; 74:17;


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merp                                                                      Index 6
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                          TUESDAY, JULY 29, 1997

 80:14                           66:3; 69:1; 78:14,16            n cessarily 22:3; 34:5            officer 26:17
 makers 3:17                     millions 11:6; 43:22,22;        necessary 30:21,24; 66:9          official 33:12; 72:4; 81:16
 makes 61:3; 67:16; 71:25        45:20,21                        need 14:7x9; 22:7,8;               ften 18:3
 making 5:17; 13:18; 14:6;       mind 11:4; 14:8                 27:20,22; .,2:19; 36:19; 45:7;    oh 58:23
 28:11; ""34:4;47:9; 52:23;      Minn apolis 8:12                49:14; 50:13; 51:7,23,23;         Ohio 6:8; 66:14,22
 63:5; 64:18; 72:20; 75:18       Minn appolis-St 57:16           52:1; 55:8; 61:10; 70:25          Okay 27:21; 64:23; 78:1
 male 27:14; 28:11               Minnesota 12:7,24; 53:23;       needed 24:14; 40:13; 78:11        old 25:8; 72:16
 man 78:19                       54:20; 58:12; 59:25             needs 5:23; 11:23; 16:6;          omnibus 12:25
 manag m nt 27:13; 29:25         minute 67:5,7; 80:3,22          45:11; 51:6; 68:4                 once 14:9; 21 :14; 69:15
 Manag r 77:17                   minutes 7:14; 25:9; 43:18       negative 13:19; 15:21; 29:8                   23;
                                                                                                   one 13:13... 19:2,17; 20:5;
 March 69:13                     Mirage 1:80                     neglect 13:13                     21:13; 28:~; 31:4; 37:8; 40:3;
 marriages 40:6                  mirror 28:8                     nefghborhood 28:7                 45:7,8; 47:11; 48:8,23; 50:7;
 mascurine 27:11; 38:7           mischievous 33:12               neonatal 65:20                    54:1,8,20; 56:12; 57:1,9,22;
 mask 14:22                      miss 80:15,18                   net 20:1,13; 57:11; 61:5          59:10,20,25; 62:12,13,13;
 match 9:22                      Missouri 45:1; 69:12,21,25;     network 9:4; 30:2; 68:2;          68:20; 72:3,9,13; 73:2,16;
 matching 64:1                   70:4,7; 71 :3; 74:8             70:13                             74:19; 76:4; 78:4; 80:14
 materials 12:12; 43:11,24;      mistake 39:18                   neutral 29:6                      one's 60:22
 44:15,16                        mix 24:15                       Nevada 1:81; 81:17                one-page 16:17
 maternal 18:20,21; 29:16        mobility 55:23                  new 3:2,10; 7:1,8,14;             one-paragraph 32:17
 math 27:5                       mobilization 43:12              8:1,4,9,18; 9:6,20; 11:15;        one-sentence 32:15
 Mattei 46:5,5; 48:6             mobilize 3:16                   13:14; 20:6; 24:22,24,25;         one-stop 50:3
 matter 29:20; 38:22; 39:1;      mobilized 64:16                 33:2; 42:25; 43:1; 44:15,22;      ones 28:10
 41 :11; 58:15; 61:20; 81:9      mode 49:16                      45:17; 50:25; 51:3,16; 57:1;      open 53:14
 Maximizing 63:19; 64:5          model 52:7                      64:7; 65:3,7; 66:5,11; 67:15;     opening 26:14; 33:17
 maximum 13:4                    models 22:25; 50:19,19,20;      70:1,12; 72:7; 75:6,25            operates 66:19
 may 10:10; 22:19; 23:11;        52:12; 55:7,21; 56:13,22        newborn 7:10                      Operation 75:14
 51:20; 53:20                    mom 26:17                       newborns 70:15; 71:3              operations 8:22
 maybe 28:2; 40:14; 49:18;       moment 35:1; 62:7               newspaper 79:10                   opinion 34:9
 53:12; 59:3,4                   monetary 32:2                   newspapers 43:6                   opportunities 8:2
 mayor 35:21                     money 30:20; 32:21; 45:18;      Newsweek 42:9                     op~ortuni!y 6:6; 15:3,8;
 maz 12:15                       46:6; 49:18; 51:23,23; 52:14;   next 3:19; 7:6; 15:1; 36:12;      73:8; 74:15; 77:22
 McD nald's 46:4                 58:5; 61:4,7; 73:19; 74:12      59:9; 77:9                        oppose 47:12
 m an 12:19; 38:13,17            monies 33:8                     NGA 3:7 21; 4:1; 14:24;           opposite 39:23; 40:6
 meaning 32:20,22                monitor 32:24                   52:20; 64:8; 67:9; 68:8; 73:9     optimal 24:15
 means 6:17; 75:25               monitoring 54:16                nice 45:12                        optimize 25:2
 meant 29:9; 47:17; 72:5         monthly 13:3; 34:7              night 25:13; 80:13                option 33:9
 measurable 56:14                months 13:4; 43:11; 71:3;       nine 67:24                        options 12:16
 m asur 10:18; 17:19;            72:16                           nobody 37:3; 39:4,5               order 34:6; 35:14; 49:19
 18:11,17                        Moreover 20:16                  non-system 14:11                  organization 26:1
 measured 18:3,7,23; 21:18       morning 2:1; 6:1; 7:17;         none 3:3; 10:22; 80:14            organizations 43:25; 47:4;
 mechanisms 8:6                  14:21; 15:6,10; 16:15,19;       nontoxic 39:16                    57:20; 70:3
 media 26:5; 43:7; 48:2; 68:7    22:21; 28:9,22; 37:10; 55:8;    North 6:8; 9:22; 45:17;           organizing 42:9
 mediate 15:20                   60:16; 80:1,6                   65:17,18                          originally 60:23
 Medicaid 10:16                  morning'S 2:3; 15:9; 68:16      note 14:16; 16:14; 70:16          others 16:13; 38:20; 41 :14;
 medical 66:20                   mother 27:21,23,25; 45:12;      notes 73:16; 81:10                61:15
 medicine 78:14                  55:12; 71:9                     notice 55:9                       otherwise 17:2
 medicines 78:6,11               mother-child 20:14              noting 23:18                      out-of-state 57:13
 medium 65:6                     motherhood 36:23                number 11:4; 12:20; 15:19;        outcome 32:13
 meeting 3:15,21; 4:1; 37:20;    mothers 19:7,10; 20:7;          16:24; 17:6; 23:22; 24:4;         outcomes 9:14; 10:12;
 40:11; 44:22; 58:21; 64:9;      28:17; 40:2; 66:9               28:19; 41 :14; 47:11; 48:9;       12:19; 13:11,20; 18:7,18;
 77:9; 78:3; 79:7,18,25; 80:8    mothers' 20:18                  50:16,22; 57:9; 62:1; 65:22;      20:25; 21:8,14,17; 23:16
 meeting. 79:23                  motivated 15:14                 66:23; 79:12                      outreach 48:2; 65:25
 meetings 29:21                  move 12:15; 13:15; 58:24        numbers 35:12                     Outstanding 14:13; 65:12;
 Megan 79:14                     moved 37:20,21                  numerous 22:22                    78:2
 Mer 69:20; 74:6; 75:23          movement 13:9                   nurses 20:7                       overcome 16:25
 member 39:16; 57:4; 64:11       moving 6:14: 14:5               nutrition 5:19; 17:9; 18:19       overcoming 22:19
 members 27:13; 44:20            multi-faced 62:15                                                 overconfident 29:20
 menti n 6:19; 59:19
 menti ned 22:11; 24:4;
                                 multimodal-dellvery 32:22
                                 multiple 18:23; 63:16; 67:11
                                                                 o                                 oversees 63:21
                                                                                                   oversized 70:22
 41:16; 45:9,11; 78:1            museum 34:23                    O'Donnell 46:10                   own 28:12; 31:20; 36:13;
 M rrill 75:5,7                                                  oath 40:11                        50:10; 77:3
 message 70:23; 77:3             N                               Objective 16:7                    owned 5:15
 met 4:17; 49:17; 52:24;                                         ob ectives 17:7
 60:15                           naively 51 :11,11               ob igation 7:8                    P
 m thods 23:1                    name 12:8; 63:13                observe 21:8
 Michael 6:12                    namely 21:22                    obvious 10:22                     packet 75:20; 76:19
 Michigan 21:5                   nation 6:6; 8:13; 14:2          obviously 48:15; 54:16            page 4:1,2; 68:8; 79:10
 middle 29:24                    NATIONAL 1:6; 2:6; 3:8,22;      occasion 2:8                      paid 19:22; 57:15
 middle-aged 26:16               5:2; 7:23; 14:1; 15:7; 26:3;    occupied 35:18                    pair 20:14; 50:1
 middle-class 26:16; 28:11       37:8,9; 40:10; 43:25; 44:2;     occur 21:1; 23:6                  pamphlet 62:7
 Mildred 44:24; 45:9             47:4; 58:13; 68:23; 77:18;      October 46:8                      panel 4:20; 62:24
 Milice 35:11                    79:22                           off 3:13; 4:20                    panel's 5:24
 military 26:17; 44:20,20        nationally 33:4; 38:22,23;      offer 74:10,13; 77:11             panelists 4:22; 36:9; 37:5
 MILLER 2:1; 6:2; 15:7; 36:8;    65:16                            ffer.35:24                       parcel 69:19
 38:10,12; 41 :6; 52:21; 53:8;   nationwld 45:3; 47:3            offered 22:5; 76:23               pardon 60:1
 59:15; 61:12,17; 64:12;         natural 64:13                   offering 75:10                    parent 12:12; 13:4; 18'12;
 69:25; 73:8; 77:14; 79:3        nature 23:7,15; 26:10           offers 66:15; 68:17               45:24; 49:22; 50:4,7
 million 7:3; 9:24; 10:4;        Nazis 35:10                     office 5:3; 40:11; 77:6;          parent-child 17:8; 18:5
 36:14; 42:10,12; 60:9; 63:23;   n arly 7:4                      79:15; 81:16                      parentally 32:21

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                       Ind x 7
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                            TUESDAY, JULY 29, 1997

 parenting 43:13; 46:3; 66:20      Perry 21:3; 27:3; 39:10;        practitioners 3:17                progress 3:3; 31 :18
 parents 3:16; 5:23; 12:15;        45:25                           preached 41:20                    pr mise 63:2
 16:10; 18:1,8; 23:4; 24:16;       Perry's 28:24; 31 :21           preaching 25:20; 38:14            pr mlsing 62:1,6,9,23
 30:15,25,25; 31:1; 32:23;         persistence 65:15               precare 36:18                     promoting 2:20; 62:5
 44:25; 45:10; 66:7;               pers n 33:20; 40:1; 45:10;      predicated 28:12                  prom ti n 70:1
 70:13,15,24; 72:3,3,7,15;         56:11; 57:4; 71:12              predictable 6:22                  pr perly 60:13; 69:4
 74:21; 75:2,25; 76:25;            person's 39:13                  pregnancies 20:8                  prophetiC 73:22
 79:12,17,19                       personal 70:23                  pregnancy 39:20; 55:13            proposals 47:16
 parents' 20:18; 21 :17            personalization 71 :24          preparation 29:11                 proposition 45:14
 parishioner 25:23                 personalized 76:1               preparing 26:6                    propriety 34:16
 part 15:9; 37:22; 42:8;           personally 70:15; 75:9          Preschool 21 :3,5                 protection 73:2
 45:10; 61 :24; 62:3; 64:2;        perspective 11:22; 68:13        present 61 :25                    proud 69:25
 75:12                             persuaded 70:14                 presentation 25:10; 34:16;        proudest 35:1
 participants 19:23; 22:2;         Pfizer 68:21; 78:5,6,15; 79:4   36:12                             proven 56:12
 23:13                             Pfizer's 78:18                  presenters 27:2; 61 :18; 80:1     proves 80:12
 participate 19:6.110; 21 :9;      Philanthropy 31 :3,3            preserve 66:17                    provide 8:21; 10:20; 13:3;
 49:7; 74:16; 80:10                phone 71:10                     president 5:14; 26:16;            16:7; 23:15; 24:16; 31:22;
 participated 19:3                 picked 73:16                    49:10; 54:9                       36:3,18; 66:9; 67:3,12; 78:6;
 participating 66:10; 80:4         picture 72:13,16; 76:9          President's 73:13                 79:6
 partlci~tl   n 18:14,15;          pictures 72:12                  press 42:19; 68:7; 80:4           provided 21 :5; 23:7; 74:4
 19:25; 29:17; 48:18               pie 36:24                       pretty 51:19; 80:13               provider 53:14
 particular 54:17; 60:14           piece 40:3; 56:17               preventative 69:3                 providers 8:21; 10:21: 11 :4;
 particularly 5:18; 20:24;         Pittsburgh 10:2                 prevention 13:19; n:19            12:16; 66:7
 33:2; 38:12; 56:25; 59:7;         place 7:19; 14:20; 50:19;       preventive 10:17                  provides 64:1; 65:4; 66:25;
 60:18                             64:18; 81:9                     Price 4:23; 5:14.z 6; 25:7;
                                                                                     1               67:25
 partl s 57:20                     placed 6:25                     38:5,13; 48:7; 51:22; 64:19;      providing 11 :3; 16:11; 78:11
 partner 50:14; 52:2               placements 67:3                 68:10                             provision 49:17
 partners 67:1; 68:14              places 2:3; 80:16               priest 25:21                      PS 76:10
 partnership 8:25; 9:25;           plagiarism 4:13                 priest's 25:22                    public 3:8; 5:1; 7:21: 8:15;
 14:14; 63:f9,21; 66:23;           plan 43:23; 51:3                primary 3:1; 40:2                 9:22; 10:8; 11 :16; 16:12;
 70:3,14,17; 75:12; 78:2           planned 61 :12                  principal 37:14                   32:12; 34:6; 37:12,17,21;
 Partnerships 5:6; 8:5,10;         planning 13:23                  print 70:18                       40:21,24; 41:22; 42:5; 43:3;
 13:14; 50:1; 51 :5; 65:19,20;     plate 8:18; 9:1                 priorHy 47:11; 52:23; 53:24       50:1; 68:3,13,15; 71 :19; 72:4;
 68:11,18                          plateau 35:7,13,19              prison 13:21; 57:12               74:20; 76:16
 passed 8:18; 12:25; 33:3          plates 16:17                    prisons 56:2,21                   public-private 14:14; 63:21;
 passing 12:22; 52:22              play 26:8; 33:18; 44:13;        private 5:16; 8:10,25;            65:18; 66:22; 68:11; 78:2,4
 passionate 46:13                  47:12                           9:2,7,21,24; 10:2; 11:14,17;      pulpit 46:12
 past 2:16; 3:6; 4:14; 7:25;       played 6:13; 79:2               33:13; 50:1,14; 64:15; 66:8;      Punish 58:12,14
 24:22; 35:4; 67:20                players 8:9                     68:3; 79:5                        punished 58:6,6
 paternal 65:21                    please 27:18; 76:9,10           privately 4:12; 48:10; 64:6       put 7:1~.i.33:22; 42:9,16;
 patl nce 25:22                    pleased 79:7                    pro 58:22                         45:22; 00:9
 patients 78:7                     pleasure 37:10                  probably 3:9; 6:20; 53:21;        putting 14:20; 56:1; n:20
 Paul 57:16                        pledges 52:25                   rrs                               puzzled 6:21
 pay 20:21; 30:16,23; 57:17;       PLENARY 1:10; 2:3· 4:17;        problem 54:3; 60:4,20
 64:2                              15:9; 25:18; 27:1; 28:25;       problems 33:24; 40:18,20;         Q
 paY.lng 12:9; 32:19; 61 :6;       80:6                            41 :18; 59:11; 66:18
 74:14                             plus 61:3                       proceedings 81 :8,14              qualified 27:12
 payment 32:14                     podium 63:13                    processes 18:7                    Quality 8:3; 10:6; 11:5;
 paym nts 67:1                     Point 5:5; 21 :20; 28:6;        produce 17:25; 23:21              f2:7,1t>,12,17,17,18,23; 13:2;
 payor 33:1; 36:2                  30:25; 39:5; 48:1; 52:6,12;     producer 37:13                    29:3; 30:4,13,14,21,24; 31:2;
 pays 31:4                         54:21; 57:2; 76:22              producing 23:12; 48:3             32:3,19; 50:5; 66:4; 67:18;
 Pediatrics 44:1; 47:6             pointed 68:10                   productive 7:12; 57:4             74:22
 penetrate 44:16                   points 9:4; 16:18; 67:23        productlvHy 9:17                  quantity 66:4
 penetrated 46:21,21               poisoning 10:15                 products 78:15                    quarter 3:12,13
 Pennsylvania 56:25                policies 50:11                  professor 5:1                     question 28:4; 32:16; 34:3
 people 29:19; 37:24;              policy 3:17; 7:21; 68:13        Profits 29:25                     Questions 23:22; 53:15;
 38:17,18; 42:11,12,14,17;         policy; 74:20                   profound 29:13                    73:5
 45:5,6,21; 51:13; 56:1,2;         Polish 47:5                     program 4:7; 5:2,7,10,13;         quick 4:5; 47:7; 76:20
 57:15; 59:5; 61:6                 polite 6:21                     7:2f; 8:11; 9:23; 11:18; 13:2;    quite 44:3; 51 :17
 peoples' 59:3                     politicians 34:10,13            19:6,8,22; 20:5,12,12,16;         quote 26:13
 per 20:14; 30:1,16,18; 55:20;     politics 31 :18; 34:9; 53:5     21 :4,10,19; 22:2,3,4,9,16;
 67:13; 78:16                      politics; 74:20                 23:5; 24:20,25; 33:21;
 percent 13:23; 19:4,9;            Ponder 44:23                    45:1,3,11; 51:1; 57:2; 64:6;
                                                                                                     R
 28:3,17,19,19,20,21 ;             poor 30:25; 33:4,19,23; 34:1    65:8,16,20; 66:11,19;
 29:4,6,6,9,25; 31 :4;                                             67:11,13,15,17; 68:22;            raid 59:4
                                   Population 5:9; 23:14                                             raise 27:18,20; 37:17; 63:16;
 47:8,10,11,12,15,18,21 ;          populations 19:1                69:8,13,22; 70:2,6,11;
 54:22,23; 55:17; 57:13;                                                                             64:18; 70:9; 75:16
                                   position 26:20; 41 :25          71 :8,23; 72:1; 73:11,24;
 58:13; 60:5,7,20,24; 61 :2,2,3;   p()sltlve 4:21; 10:11; 13:11;   74:4,16; 75:1,11,13; 76:21;       raised 26:16; 28:10; 29:2;
 65:5; 67:19; 68:24; 70:10,11;                                                                       37:19
                                   15:21; 29:5; 62:17              n:6,20,23; 78:9,15
 71:17,20                                                                                            raises 63:22
                                   possible 10:24; 31 :20; 69:6    programs 3:24; 4:9.i.8:17,19;     raising 2:19; 42:5; 63:24;
 percentage 14:3; 54:23            possibly 31:10                  9:12; 10:9; 11 :11; 1,,:16;       65:15; n:11
 perf rmances 47:22                post 67:3                       15:13; 16:3,21,24,25;
 perhaps 2:8; 74:10                potential 3:5; 16:8; 74:16      17:4,6,11,12,14,18,21,22;         RAND 5:9,11; 15:12; 16:1
 period 2:12; 14:18; 15:16,20;                                     19:13,14,15,16,19,22,25;          range 8:16
                                   potentially 15:22                                                 rat 30:17; 68:24; 70:9;
 20:21; 32:8,17; 39:13             p verty 32:10; 60:5,25; 78:8    20:1,24; 22:1,23;                 71 :15,16; 74:1; 75:17; 78:16
 permanence 26:11                  P well 73:14                    23:9,10,20,25; 24:7,25; 33:4;
                                                                                                     rather 22:4
 permanent 66:25                   P wer 63:20; 64:5               47:14,20; 49:22; 50:6; 51 :24;
 Permanent 9:18; 48:20             powerful 9:6                    54:1; 56:9; 57:1;                 rating 57:20
 permission 27:16                  Practices 3:7; 62:6,10,23       62:2,11,12,15; 63:8; 66:6,15      reach 3:5; 21 :2.1.20; 2:13;
                                                                                                                          4
                                                                                                     70:15; 71 :15; 70:25

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                          Index 8
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                           TUESDAY, JULY 29, 1997

 reached 21:14; 42:12; 49:4;      repeating 39:11                  33:10,15; 42:20,21; 64:12,22     sex 39:23; 40:6; 53:4
 71:3                             replace '10:16                   R mer's 42:20                    sexual 67:19
 read 3:25; 25:17; 46:22,23       replicate 24:2,24; 44:19;        room 22:16; 38:18;               Shaheen 27:10
 readineas 17:10                  45:15                            40:1,9,19; 68:7; 73:15; 79:11    shall 35:23; 36:5
 ready 30:22                      replications 24:5                R 8ie 46:9                       shame 49:12
 real 50:19; 55:9,15; 60:20       Reported 1:24                    r ughly 17:3                     share 50:17; 62:4; 72:13;
 reali!}' 2:10; 28:13; 34:11;     Reporter 81:7                    Roy 5:22; 25:13; 64:12           76:4
 56:19                            REPORTER'S 81:1                  RPR-RMR 1:25; 81:23              sharing 2:19; 78:3
 realized 41:1                    reports 30:9                     rubber 38:16                     She's 72:15
 really 2:14; 9:1; 11:22; 14:2;   represent 62:10                  run 57:6                         sheet 76:19
 37:21; 41:1; 60:2; 68:18;        reproductive 18:20                                                sheets 46:25
 n:21; 79:6; 80:17                required 47:13                   S                                Shield 9:10
 reap 19:21                       requirements 65:3                                                 shipping 59:5
 rear-vi w 28:8                   rerun 42:13                      safety 20:1                      shopping 50:3
 Reard n 72:14,15                 rescue 42:22                     Saint 72:14                      short 60:13
 r as n 48:21; 56:14; 74:24       research 7:21; 13:13; 15:19;     Sally 26:21                      short-term 17:20
 reasonably 54:15                 17:3; 24:14,20,23; 31:21;        salvation 25:25                  Shorthand 81:6,10
 recall 57:12                     43:1; 45:16; 47:1; 64:7          San 28:5                         shot 43:18; 69:6
 receive 62:7; 63:10,14; 68:3;    research; 21:22                  Sarah 14:12                      shots 72:7
 75:25                            researchers 5:11; 23:23          satisfied 3:4                    shouldn't 41 :6
 received 11:14; 14:12; 72:4;     resent 38:5                      save 72:22,25                    show 3:9; 42:12; 43:12;
 78:14                            Resistance 34:24; 35:9           savings 19:18;                   50:20; 63:2; 71:19; 78:17,22
 receives 10:6; 71:9              resolved 51:18; 70:9             20:2,1"3,15,17,19,22;            showed 45:5
 recent 38:21; 57:14; 62:4        resource 4:3' 12:14;             21:11,13,23; 22:2                shown 33:16; 39:9
 r centlv 12:24; 36:13; 37:16;    14:15,24; 36:20; 50:4,21;        saw 3:9; 28:7                    shows 19:15; 31:21; 57:11
 44:11,22                         68:2                             sa~~ 25:17; 37:2; 38:5;          Sia 11:13
 reCipients 63:11; 65:6           Resources 10:25' 12:6;           76:18; 79:20                     side 27:9,11; 38:6; 58:3,21
 recogniti n 63:7                 16:6; 33:20; 68:14               says 76:10                       sides 12:21; 49:11
 recognize 62:22; 63:2,17;        respective 2:2                   scale 17:5; 19:14; 24:8          Slegfreid 25:13
 76:13";n:16                      respond 55:7                     scattered 54:5                   sign 76:20; n:23
 recognized 49:15; 65:16          responding 8:1                   scene 9:7                        signature rr«
 rec Hecti n 54:3                 response 7:1; 72:1,12;           scheduled 29:21                  significant 16:21; 17:25;
 record 70:24; 72:17; 81:14       79:21                            schedules 48:17                  1Ef:25;21:8
 recruit 67:1                     responsibility 55:12             school 17:10; 28:5; 39:14,22     silence 25:24
 redesign 15:3                    respon81ble 42:8                 schools 56:24                    Sliver 80:11
 reduce 16:5                      rest 23:13; 25:10; 31:11;        science 27:4; 39:9               simple 73:24
 reduced 18:15; 19:24; 20:3;      34:2,21,21; 40:4; 53:11          8clentffic 7:2                   simply 55:22
 21:16                            re8trlcted 49:11                 seal 81:16                       single 22:18; 32:25; 36:1;
 reducing 13:12                   re8ult 9:9; 20:13                second 50:9; 56:5; 67:6          40:1; 45:12; 54:12; 56:11;
 reductl n 19:4,9; 47:18          results 4:22; 8:8; 24:2;         Secondly 24:9                    58:7
 reductions 18:10,18,21;          62:2,18,23                       Secretary 61:14                  singled 60:2
 20:18                            results-based 14:19              sector 9:24; 10:2,8; 11:17;      site 4:2; 43:8
 reenglneered 29:16               resume 26:23                     64:15; 66:8; 68:15; 79:5         situation 25:21
 reenglneerlng 29:19,23           retreat 35:14                    seeing 69:5                      Six 8:11; 27:24; 46:1; 47:3;
 referee 54:10; 55:5              retrievable 32:2                 seem 60:13                       49:6; 60:6; 63:23; 67:10,20
 reference 4:5; 74:10             return 32:8                      seems 49:13                      slx-city 9:4
 referenced 75:23                 reveals 21:21                    seen 10:10; 26:18; 34:11;        Slightly 30:1; 53:21
 referral 12:14                   revenue 10:20                    43:5; 44:18                      slots 12:11
 referrals 66:21                  revenues 12:4                    sees 55:6                        slowing 47:17
 ref rm 8:2; 11:2; 14:8; 65:3;    reviewed 26:23                   segment 68:16                    small 17:5; 19:1;
 66:11                            Reward 58:14                     seft-sufficiency 18:12           34:20,23,24
 regard 54:23                     rewarded 49:15                   seHlshneas 27:15; 31:19          smaller 75:22
 regarded 11:18                   rhetoric 28:15                   Senators 60:17                   smaller-scale 24:3
 reQarding 16:1; 24:2             Rhode 6:8; 10:13,19; 60:1        sending 57:20; 70:19; 72:11      Smart 9:23; 44:23; 65:16,18;
 Reilly 61:14                     rich 31:22                       senior 5:4,8; 7:22; 78:18        71:8
 reimburse 58:12                  right 3:12; 14:5; 38:8; 51:22;   sense 61:10; 68:12               8muggled 35:8
 reimbursement 30:17              55:14; 58:5,23; 61:22; 71:16;    sensitive 55:16                  so-called 14:10
 Reiner 3:14; 6:15; 16:13;        n:24; 80:12                      sent 70:19; 72:16                social 19:24; 20:1; 57:23
 27:6; 37:11; 38:2,4; 59:20;      ring 38:7                        sentence 6:20                    society 16:10; 23:14; 39:16;
 61:19; 80:5                      rlsfng 56:10                     seriously 11:9; 69:18            40:5; 57:5
 relate 39:23; 40:5               risk 10:15; 17:16; 21:24;        servant 40:24                    socioeconomic 17:16
 R lati ns 78:21                  22:8; 24:9,12; 32:4; 50:7;       serve 4:4; 23:14; 62:17          sociology 27:6
 r latl nshlp 17:9; 18:5;         58:5                             served 21:24                     soft 58:21
 43:25                            road 7:12; 38:16; 69:11          serves 5:4                       softer 27:9
 relati nships 16:4               roads 41:2                       services 11:25; 14:11;           solution 33:22
 relative 21:9                              ...
                                  Rob 3:12 14,19; 6:15; 16:13;     23:7,15; 24:15; 33:1; 36:2;      solve 40:18,20; 41 :18
 relatively 19:1                  27:6; 37:11,11; 38:2; 59:20;     50:20; 57:24; 62:14,17;          someone 79:20
 released 46:7; 52:12             60:1; 61:19; 80:5                65:24; 66:16,20; 67:4,12,25      something 41:10; 43:9;
 releasing 16:16                  Robert 5:3                       serving 8:23                     49:19; 53:21; 54:4; 73:25
 relentless 13:21                 Rock 37:14                       SESSION 1:10; 2:4; 3:20;         soon 17:11
 rellgl n 53:5                    Rogers'8 25:9                    4:8,18,19; 15:9; 25:18; 37:1;    sorry 14:3; 27:22
 remain 23:22                     role 6:13; 26:8; 27:12;          58:23; 61:14; 68:16; 73:13;      sort 56:20; 76:19
 remarks 7:13; 15:11;             33:17; 36:2; 47:12               80:3,6,8,22                      source 32:13; 44:4
 16:14,18; 36:10                  role826:11                       set 14:25; 30:3; 72:3; 81:15     sources 30:23
 remember 3:14; 4:16              r II 79:1                        settings 29:5,6,7                S uth 1:15
 remind 72:7; 80:2                rolls 57:12                      seven 7:14; 35:15; 79:14         spaces 65:22
 reminder 70:13,17; 71:9          ROM 48:4                         several 8:11; 18:1; 59:9;        spawned 59:5
 reminding 70:24; 75:2; 79:5      R me 41:2                        79:17; 80:16                     speak 4:25; 15:8
 Renner 54:18                     R mer 5:22; 26:19;               severe 11:12                     speaker 25:11


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Me<ge                                                                      Index 9
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                             TUESDAY, JULY 29, 1997

 speaker' 36:12                   strengthen 15:3; 17:8; 24:6;     talk 7:15; 14:18;                  Third 24:14; 50:11; 56:17
 speak rs 53:19; 59:13; 64:7      66:17                            39:19,20,20; 40:15; 42:1,20;       thirst 7:11
 speaks 78:25                     strengths 68:15                  50:13; 53:3; 57:23; 58:25;         this; 74:19
 special 4:2; 18:10; 19:4;        stressors 15:22; 16:4; 17:1;     73:17                              Thone 35:18
 27:7; 42:10; 55:8; 76:8          22:19                            talk d 23:10; 38:13; 42:4;         thoroughly 53:10
 specially 20:7                   strong 7:1; 62:8; 64:14;         48:9; 51 :13; 73:12                thought 11 :23; 60:23
 specific 19:15; 50:2             69:15                            talking 2:10; 18:23; 42:25;        thoughtfully 35:22
 speed 38:21                      strongly 56:8                    46:4,5; 52:16; 55:8                thoughts 36:3
 spend 57:23; 60:9; 61 :4;        struck 76:2                      talks 43:19; 51 :24                thousand 43:9,9; 45:17
 72:24                            structural 54:3                  TANF 33:10                         thousands 43:14; 44:20;
 spending 47:20                   structured 30:2                  tapped 31:1                        55:19
 spin-off 9:9                     struggle 11:1                    target 22:6; 23:2; 62:13           three 2:7,9,11; 4:24; 7:6;
 spoke 3:14                       struggling 79:12                 targeted 10:10; 16:2; 17:14;       15:17; 16:23; 17:13; 20:20;
 sponsored 47:3                   stuck 79:16                      19:16; 21 :25                      22:12; 33:4; 36:9; 38:8;
 spread 8:12; 64:7; 68:8          students 28:5                    task 34:18                         39:6,12,17; 40:13; 41 :3,4,9;
 squar 35:17                      studied 17:23; 29:2; 41:1        taught 31:1                        43:20; 48:21; 51 :15,19; 62:3;
 squarely 6:3                     studies 17:5; 18:11,17,23;       tax 11:19,24; 12:1,4               63:3; 74:20; 75:8
 ss 81:0                          19:1; 22:17; 24:3,22; 31 :25     tax-wise 57:21                     three- 21:6
 stabillzati n 8:22               study 15:14; 16:16; 19:2;        taxes 19:22; 61:7                  three-year 20:21
 stabl 31:22                      21 :7,19; 22:10; 30:12           Taxpayers 19:21; 20:2              thrilled 48:24; 52:20; 53:2
 stack 75:21                      sub-subagency 54:6               Teachers 44:25; 45:10              throughout 53:11; 80:7
 stacked 35:17                    subagency 54:6                   teaching 25:21; 65:23              thrust 79:17
 staff 16:1; 67:16                submissions 62:25; 68:6          team 5:11; 15:25; 27:14;           Thus 22:14
 Stage 5:6; 23:5; 24:17           submitted 62:6,22                64:6,11,19                         time 14:16; 15:2; 24:18;
 stake 51:8                       subsidies 65:4                   teen 39:20                         28:7; 30:18; 32:9; 38:1;
 Stand n:25                       subsidized 30:17; 64:4           television 27:7; 42:11;            39:12; 42:7,17; 43:2; 51:14;
 standards 49:18                  subsidy 65:9                     44:12,13                           63:1; 71 :4,12; 72:7; 75:3;
 standpoint 72:21                 substance 18:21                  tell 31 :14; 55:18; 57:10,20;      77:16; 81:9
 stares 6:21                      substandard 10:17                69:22; 74:2,3,9,18                 times 20:16; 22:12; 35:19;
 start 4:19; 5:4; 9:23; 11 :18;   Substantial 18:6                 temporary 26:10                    71 :8,10; 72:25
 20:11; 25:8; 31 :20; 33:14,17;   succeeding 49:13                 ten 25:9; 28:2; 55:17              today 4:8; 6:23; 15:9;
 36:16; 44:23,25; 52:4;           Success 8:11; 39:22,22;          ten-state 9:4                      26:12,23; 27:3;
 56:6,8,12; 65:16,19;             49:15; 67:10; 74:3               tens 43:14; 44:19                  28:13,18,20,23; 30:21; 31 :9;
 66:7,14,15; 71:8                 successes 25:14                  terms 19:17,22; 39:13;             32:1; 33:10; 36:3; 38:2;
 started 50:22; 70:8,12;          successful 4:16; 23:12;          46:14; 49:3; 50:10; 61:1;          63:17; 65:11; 69:1
 71:6,21                          40:6; 64:20; 66:24; 70:6;        74:21                              Todd 66:1
 Starting 5:5; 9:4; 67:23         75:15                            Terrance 47:2                      toddlers 11 :6; 65:23; 66:10
 stat 3:22' 10:21 23; 11:15;      successfully 7:11; 40:7;         territory 76:24; n:1               together 45:3; 48:10; 51 :9;
 12:21; 13:20,25; 31 :13; 33:1;   69:11                            tested 16:25; 69:11                54:7; 59:1; n:21
 36:1; 40:22,22; 49:3; 51 :3;     successors 26:7                  thank 6:2,7J.15; 7:14; 15:4,6;     told 30:14; 72:3
 52:3; 56:7; 60:4,5,9,21;         suffer 55:6; 56:2                25:4; 36:8; ~:4, 10;               tombs 35:4
 62:4,11; 64:3,9,10,25; 65:1,6;   sufficient 35:12                 53:2,8,18; 55:14;                  tomorrow 3:2
 66:6; 68:9; 70:1; 73:7; 74:17;   summarized 31 :25                59:12,13,14,15,17; 60:1;           tone 34:17
 76:24; n:1,7,7; 78:21; 80:11;    summarizes 16:18                 61 :16,18,22,23; 69:24; 70:2;      took 34:19; 40:11; 54:18;
 81 :3,17                         summit 48:8,11; 50:8,19;         72:2,6; 74:6,9; 76:6,9; n:12;      73:15; 81:7
 State's 5:15                     52:6,17; 73:13,17                78:22; 79:3; 80:1,23               tool 44:7
 state-wide 13:15                 superb 6:2                       Thanks 73:7; 74:7; n:14            tools 29:23
 stategy 54:1                     supervision 81 :12               that's 25:12; 37:4,4,6,22;         top 52:23; 54:20
 states 6:9; 7:4,9,18,25; 9:2;    supply 11 :2; 12:7               39:3; 40:12,17; 41 :18,24,25;      topic 2:25
 10:8; 11:1,8,10; 12:4,9;         sup-port 8:16,19; 9:2,11;        42:15; 46:10; 48:4,5,8,23;         totality 54:25
 13:5,10; 14:2,20,23,24; 15:1;    10:24; 11:17,19; 12:13,22;       51 :6; 52:17; 54:2; 55:1; 56:3;    touch 27:3,5,8,11
 40:12; 54:20; 56:23; 57:11;      13:15; 15:4; 16:6,11; 30:4,21;   60:24; 62:7; 71 :4; 73:25;         touch. 76:11
 58:4,5,16; 59:3,24,24; 60:23;    31 :15; 50:13; 65:21,24; 66:9;   75:22; 79:22; 80:20                tough 48:16
 68:23; 69:6                      67:23; 68:1,11                   themes 7:16                        tougher 58:2
 stat wide 65:16; 70:12           supported 9:23; 32:12            themselves 19:20; 22:4             toward 7:12; 13:15
 statistically 18:24              supporting 9:13                  There's 4:9; 45:16; 49:6;          town 35:18
 statistics 46:23,23; 47:7        supports 13:2; 47:19; 66:17      50:5; 55:10,23; 56:14; 60:3;       townspeople 35:20
 status 17:17                     surgery 73:19                    76:18; 79:10                       toxic 39:15
 stay 6:24; 13:4                  surrounded 35:9                  thereafter 81 :10                  tracking 65:20
 stay-at-home 26:17               survey 46:25; 47:1,3             thesis 34:10                       tradition 4:15
 steadily 51 :19                  surveyed 47:15                   They'll 57:17                      traditional 29:23; 55:7,21
 steal 4:14                       suspect 29:11,11                 They're 8:5,6,7; 24:7; 78:23       Traditionally 54:19
 Stenotype 81:8                   sustain 11 :11                   They've 8:20; 44:8; 58:8           trail 67:5
 step 11:5                        sustained 31:5                   thing 28:23; 29:1; 36:24;          train 12:16; 67:2
 stepped 9:1                      syndrome 55:5,18; 59:8           39:25; 43:17; 46:11,11;            trained 20:7; 67:16
 steps 25:24                      system 8:17; 9:20;               50:11,12; 54:17; 56:5; 76:2        trains 64:6
 stimulating 4:19; 31 :22         14:6,7,10; 29:3; 30:3,20;        things 36:16; 46:18; 48:22;        traits 27:15
 stimulation 16:5                 32:17,19,22; 33:19,25; 34:1;     50:16,22; 57:18; 68:9; 73:16;      transcribed 81 :11
 stipends 13:3                    58:20; 66:16                     74:11,12                           transcript 25:18; 81:13
 stock 3:22                       systemic 31 :14                  think 3:11; 4:11; 13:5;            transferring 33:9
 Stockdale's 26:13                systems 7:19; 8:7; 15:3          14:23; 23:19,22; 24:23;            treatment 55:9
 stopped 34:23                                                     25:20; 28:14,24; 33:15;            tremendous 14:22; 75:11
 stories 57:14                    T                                37:3,4,8; 45:16; 49:5;             trend 14:1
 story 74:3                                                        53:11,19; 54:14,15,23; 57:9;       Trenton 51:2
 straight n 58:19                 table 41:17                      58:16; 59:23; 60:10; 61 :8,10;     triangulated 30:9
 strapped 33:24                   tak n 25:24; 41 :25; 52:20       68:18; 72:20; 73:4;                true 38:13; 57:15; 72:8;
 strat gies 4:21; 7:18; 10'8;     takes 29:18; 54:16               75:4,11,24; 76:12; n:21;           73:23; 81:13
 14:4; 62:19                      taking 55:3; 69:7                78:25; 80:13,19                    trust 11:16; 30:10
 strat gy 22:18; 63:22; 64:1      tal nts 37:16                    thinks 76:16                       try 53:25; 57:2; 59'4;


LAURIE WEBB & ASSOCIATES (702) 386-9322 DepoMerge                                                                          Ind x 10
REPORTER'S TRANSCRIPT OF PLENARY SESSION                                                             TUESDAY, JULY 29, 1997

    61:10,12; 70:1; 71:11           victims 67:20                   web 4:1,2; 43:7; 68:8             53:1; 65:5,9
    trf."l 3:13; 23:16; 40:19;      video 3:10; 43:15;              Webb 1:24; 81 :6,23               w rks 56:13
    4 :1 ,19; 51:1                  44:5,13,19; 45:5,7,11;          wedl ck 28:20                     world 28:13; 43:21; 44:8,17;
                                                                                                      56:15




•
    Tuesd~ 1:0                      46:3,16; 78:17,22,25; 79:2      weeks 63:23
    tum 4: 5; 7:6,6; 61 :24; 74:2   video? 45:14                    weighed 34:18                     w rldwide 78:19
    turning 9:10                    videos 46:1; 48:3               welc me 37:11; 67:14              worth 78:14
    TV 3:9                          vlllape 34:20; 35:17            weHare 8:2; 11 :2; 14:8;          wouldn't 14:2; 45:12
    tw 17:4' 19:15; 20:8; 21:13;    Virginia 67:24                  18:15; 19:9,24,25; 20:19;         wrestlln! 40:24; 42:18
    23:9; 29:21; 38:8; 51 :14,20;   vlrtual~ 31 :11; 54:5           21 :16; 22:11,15; 30:7; 32:7;     written 5:25
    54:18; 55:21; 63:18; 67:13;     virtue 5:22                     39:21; 57:17; 65:3; 66:11         wrote 34:8; 69:13; 76:4
    68:17; 69:2; 70:10; 71:3,16;    vision 32:11,15; 62:16          well-being 6:24; 57:3; 58:1
    74:20;rrs                       visionary 26:5                  Well-targeted 17:24               Y
    two-thirds 47:15                visit 34:19,23; 44:24           Wellness 15:25
    two-v lume 14:25                visitation 36:21                went 40:20; 45:6; 51 :12;         Y? 58:25
    type 7:17; 13:6                 visited 6:9; 7:24               57:22                             ~ear 2:5,16; 6:10,19;
    ~s       19:11; 22:19,23,25;    vlsHin~ 11:18; 13:10,15,25      weren't 29:20                       :4,7,25; 11:13; 13:11; 15:1;
        :6,16,21                    vlsHs 0:6; 56:25; 66:20;        West 54:9; 67:24                  16:17; 30:15,16,18; 34:8;
    ~wrHing        81 :11           67:14                           western 34:14                     45:17; 51 :20; 69:14;
      yplcally 18:22                vital 7:10                      whatever 53:3; 61:2               70:11,13; 71 :9,17,21; 78:3,16
                                    Vogler 26:22                    wheels 36:17                      year's 3:6
    U                               voice 71:14                     WHEREOF 81:15                     ~ears 2:7,9,11,21; 3:10;
                                    Voinovich 3:1; 33:16; 38:11;    whether 15:20; 17:8; 23:3;          :10; 8:12; 13:19; 16:23;
    U.S 54:9                        41:12; 50:23; 52:22; 66:14;     39:15; 45:19; 53:9                19:10; 20:8,11,20; 21:7,20;
    ultimately 51 :2,20; 57:4       67:4,6                          whHe 26:15; 28:11; 42:7;          25:4; 31 :23; 37:25; 38:20,21;
    uncertainty 24:1; 35:20         VOluntary 11 :20                46:7                              39:6,12,17; 40:13,23;
    und restimate 75:24             volunteer 71 :13                WhHman 27:10; 41:13;              41 :3,4,10; 42:18,19,24,25;
    und rstand 6:16; 12:9,18;       volunteer-based 64:16           50:24,25; 66:1,12                 43:16,20; 51:15,19; 57:14;
    32:5; 37:3; 38:17,18,23,25;     vote 47:19                      who's 26:22; 75:6                 59:9; 62:3; 67:13,20; 75:16;
    49:11; 55:24,25                 voters 47:8,15                  whole 40:25; 42:19; 56:5;         n:2; 79:14
    und rstanding 23:20;            votlnj 47:10                    71:25                             yesterd? 11 :14; 52:25
    24:6,11; 38:21; 41:13           vow 0:12                        whom 22:4                         yet 36:2
    und rstands 41:5,17; 43:7       vulnerable 69:2                 whose 26:18                       ~eld 16:21
    underat ad 28:7; 41:1                                           wh~ 14:6' 26:15; 37:3;              ork 7:14; 20:6; 44:22; 57:1
    underway 15:11; 23:11; 24:5     W                               41: ,25; 49:12; 56:15; 64:20      You'll 3:14; 62:7; 80:18
    Und rwOod 67:22; 68:5                                           wide 13:25                        ~ou're 27:18; 41:17,18; 49:8;
    und ubtedly 67:18               wa9,8 30:1                      wHe 27:13; 34:5,19,22;              1:22; 52:24; 53:12; 61 :2;
    unf rtunat 49:7                 Walt 53:24                      54:10; 55:3; 76:8                 68:18; 74:15
    unf rtunately 60:8; 65:10       waHing 66:24                    wild~ 51:25                       ~ou've 15:18; 40:12; 69:15;
    union 29:14                     waiver 10:14                    will :1; 4:7,8,19; 5:25;            3:8
    Uniquel~ 27:12                  wake 28:22                      7:3,4,6; 9:21; 12:19; 13:3;       lOU., 3:18,24; 4:22; 5:6;
    United :4; 8:10; 56:23          Wal-Marts 45:23                 14:1,25; 16:16; 22:21,22;           :4,1 ,23; 7:19,23; 8:3,23;
    universal 58:9                  wall 37:2                       23:2; 25:8; 27:20; 31 :15;        9:14; 10:12,15; 11:12;
    univers::y 5:1; 30:12           want 6:15' 7:16; 15:11;         32:12; 34:2; 36:4; 39:1,14,15;    12:19,23; 13:12; 14:8,25;
    unprece nted 8:1                16:14,20; 23:18; 28:13; 36:8;   40:3; 43:4,21; 46:1,2;            15:4; 26:2,3; 28:18; 44:21;
    unprepared 30:5                 38:5,10; 39:19,19,20; 41:23;    47:21,25; 48:11; 50:9;            50:4; 62:2,5,14,17,18,23;
    unsaf 29:8                      44:15; 53:4,18; 55:10,16;       51 :15,21; 52:9; 53:21;           63:9; 67:19; 68:1; 79:12,17
    up-to-date 71:1                 59:6,12,13; 61:18; 63:25;       56:9,12; 58:20,21; 63:10;         youngster 57:3
    up. 72:19                       68:17; 69:17; 70:2; 73:5;       65:6; 66:4,8; 68:6; 69:17,22;     ~ourseH 37:6
    update 78:9                     74:1,10; 76:4,22; n:16,22;      74:17; 76:23; 80:19                 pSilantl 21:4
    ~n      23:14; 24:17; 34:18;    78:16; 80:14                    William 44:18                     Yvonne 72:14
        :2                          wanted 44:14; 49:10,12;         willingness 27:16
    upped 14:3                      54:21; 76:6                     window 10:16                      Z
    upset 49:2                      wanting 37:2                    wink 59:4
    urge 43:16; 52:15; 60:15,17     washlnwon 4:18; 26:4;           winners 63:9                      Zealand 44:15
    urging 10:1                     31 :10; 3 :20; 48:12;           winter 3:15; 37:19; 44:24;        zero 60:6
    use 4:6; 10:14; 13:23; 15:2;    51:12,14; 59:25                 45:9; 64:9
    18:10; 19:4; 25:14,15; 33:22;   wasn't 30:19                    Wisconsin 13:16
    63:24                           watch 47:21                     wise 15:2
    used 23:1; 37:16; 46:4;         watched 25:12                   within 57:14; 59:9; 74:23
    49:18; 79:15                    ways 2:18; 17:7; 49:25;         without 10:24; 22:11; 27:16;
    used. 52:14                     50:15; 58:4                     28:22; 32:11,13; 78:7
    uSlna 9:2,21; 10:9,11,16,19;    We'd 50:17,18                   WITNESS 81 :15
    11:1 ,19; 12:6,16; 17:15        we'll 52:12,16; 67:5,6; 80:21   won't 38:25
    utilizati n 19:9; 20:19;        we're 3:18; 36:10; 37:6;        wonderful 6:9; 33:21; 56:25;
    21:16; 22:12,15                 38:14; 40:9,18; 42:2,25;        72:2; 74:4; 77:21
                                    44:13; 45:23,24;                Wood 5:3; 35:17
    V                               46:4,5,9,16,20;                 word 64:7; 68:8
                                    48:2,3,6,7,13,15,19,22; 53:5;   words 20:21; 21 :24; 73:22
    vacation 34:19                  54:14; 55:7; 56:1,7,23;         work 2:23; 8:7; 9:16;
    vacillating 34:11               57:10,25; 58:13,16,22; 60:8;    14:6,9,13; 15:11; 16:10;
                                    61 :5,20,21; 62:8; 71 :19;      19:23; 21 :15; 23:19; 27:24;
    vari us 17:15; 23:1; 66:6
    VE 35:2                         79:25; 80:4                     28:8,18; 29:17; 40:6,7; 49:20;
                                    We've 39:2,3; 42:15,16;         50:11; 51:2,5; 55:22; 56:18;




•
    veeas 1:15,0                                                    65:3,12; 66:11; 70:6
    Vecr 79:16                      43:5,11,15; 46:10,19,21;
    Verm nt 67:10                   47:23; 48:1,4; 50:22,24;        worked 3:7; 27:22,23,25;
    v rsion 75:22; 76:20            51 :16; 52:4; 57:7; 58:18;      51 :3; 54:15; 60:12
    vice-chairman 66:13             61 :14; 68:23; 71 :6; 72:2;     w rkers 45:7
    Vice-president 78:18,21         80:15                           worklni 5:23; 9:19; 22:23;
    vice-presidential 26:14         weak 6:21                       45:23; 6:9; 48:6; 50:20;


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                         Index 11
•
      NATIONAL GOVERNORS' ASSOCIATION




               Held at The Mirage
        3400 Las Vegas Boulevard South
           Las Vegas, Nevada 89109




     CLOSING PLENARY SESSION
         Wednesday, July 30, 1997




'.            lAURIE WEBB & AsSOCIATES
              (OUIT-    REPORTERS
               517 South Ninth Street
              Las Vegas, Nevada 89101
                  (702) 386-9322
                                                                             1




 1

 2

 3

 4

 5

 6                NATIONAL     GOVERNORS'           ASSOCIATION
 7

 8                                *********
 9

10                    CLOSING        PLENARY        SESSION
11

12                                *********
13
14
                         Held at The Mirage
15                 3400 Las Vegas Boulevard South
                      Las Vegas, Nevada 89109
16
                     Wednesday,          July 30, 1997
17
                                  *********
18
19
20

21

22

23

24
     Reported    by: Laurie H. Webb, CCR No. 50
25                   RPR-RMR




                LAURIE WEBB & ASSOCIATES                    (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                 2




 1                  GOVERNOR         MILLER:          If we could             get
 2   everybody     to the table            is so that we can begin.                              I

 3   know we're     a little         late,      several        of us have been
4    ruling    this morning          in various           regional          governors
 5   meetings     and other        activities.              But we do need                  to
 6   get on time because             we have        two very          distinguished
 7   speakers     as well       as the business               of the concluding
 8   business     of the conference               to take           care of.
 9                  Good morning.               Good      morning,          governors,
10   and ladies     and gentlemen.                Welcome           to the closing
11   plenary     session      of the 89th annual                    meeting     of the
12   National     Governors'         Association.
13                  I   hope you were             able      to enjoy          Nevada's
14   Silver    State     Celebration           last night,            you're
15   trickling     in, maybe         some of us enjoyed                     it even more
16   than others.
17                  This has been              an exceptionally                busy         and
18   important     year     for the nation's                governors.              ouli'
                                                                                        I



19   bipartisan     success        was accomplished                  through        our
20   Association        and through          those      governors            who spent
21   the extra     hours      on behalf          of all of us to fight                       for
22   a balance     in state         and federal           relations.            To all
23   of those     governors,          I want       to thank          you for taking
24   the time     to talk with           the President,               congressional
25   leaders     and your       own delegations               about         bipartisan




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           3




 1   priorities.
 2                  The Welfare         Reform       Initiatives            last year
 3   and the Balanced        Budget       Agreement          just reached,
 4   have more of an impact             on state government                     than any
 5   federal    legislation       in several           decades.            We have
 6   finally    made major      changes        in welfare,               Medicaid,
 7   transportation,       finance,         immigration            and children's
 8   health.     Issues    that have been our priorities                              as
 9   governors     for several        years.
10                  So congratulations               to each of you and
11   especially     to the governors             serving          on the NGA
12   Executive     Committee      as committee             chairs         and
13   vice-chairs     and on our Special                Task Forces.
14                  Some of us who have made                      repeated        trips
15   to Washington     to personally             carry       the NGA message,
16   for the first time in years,                  every         governor        has
17   signed    NGA letters       to Congress           in support           of NGA
18   policy    and most governors             have done so repeatedly.
19                  I'm very pleased             this morning              to
20   commence    the concluding           day of the program                    with a
21   very distinguished          guest.         One that we know well,
22   but rather     than provide          the introduction,                 I would
23   like to calIon        Governor         Sundquist            who has a great
24   deal of knowledge         about      our special             guest,        and
25   defer    to him to introduce             our guest           speaker        for the




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        4




 1   morning.
 2                  GOVERNOR        SUNDQUIST:             Thank      you very
 3   much,    Mr. Chairman.           I want       to join everyone              else
 4   in saying     thanks      to you and Sandy.                   This      has been
 5   magnificent.        And the concert               last night            was just
 6   beyond    description.
 7                  I'm glad we've              invited        our friend,        Lamar
 8   Alexander,     to address          us this morning,
 9   Mr. Chairman,       because        of his deep            involvement        in
10   the issue     that most        of us care about                 a great     deal
11   and that's     education.            Lamar      was chairman             of the
12   NGA in 1985 and         '86 when         it spent         an entire        year
13   devoted    to just one subject,                 how to improve             our
14   schools.      That year        produced         our Five-Year-Time                For
15   Results     focus   on education.
16                  Lamar      was Tennessee's               first         governor    to
17   be elected     to successive             four-year            terms     and he put
18   those    two terms      to good        use.       He recruited            the auto
19   plants     that have made          Tennessee          now the fourth
20   largest    producer       of autos.           He brought              in Japanese
21   companies     at a record          rate.        Today         we have
22   approaching     140 Japanese             plants       in Tennessee.
23                  He helped         our state          become        the fastest
24   growing     in family       incomes        and his Better               Schools
25   Program     help put in place              the only           statewide




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              5




 1   program    to pay teachers             more     for teaching                well.
 2   After   he left the governor's                  office,         he was
 3   president    of the University                of Tennessee              and then,
 4   as you know,       President         Bush's       Secretary            of
 5   Education.
 6                    Today,    Lamar       lives      in Nashville               where
 7   he's vice-chairman           of the 4000-employee                      company
 8   that he helped        found.         The company              provides        child
 9   care education,         and other          family       support         services
10   to corporate       clients       in 27 states.                 Please        join me
11   in welcoming       our friend          and former             colleague,        Lamar
12   Alexander.
13                           (Applause.)
14                    FORMER     GOVERNOR        ALEXANDER:                Thank    you,
15   Governor     Sundquist       and Martha           Sundquist,            our first
16   lady in Tennessee.             Every       governor           is proud        of his
17   or her welfare        reform       program,         but in our State,                    we
18   suspect     that Governor          Sundquist's            Families           First
19   Program     may turn out to be the best                        or at least
20   none will     have a better            one and we're             very proud              of
21   that and of his service.
22                    To Bob and Sandy Miller,                      it's great           to
23   see you again       and thanks           for your         hospitality           and
24   your    leadership      in education.               I   remember            that very
25   well    during    my time as Education                  Secretary.             And to




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              6




 1   George    Voinovich          and to Janet,             it's wonderful              to
 2   see you.      George         and I began           together         working        to
 3   try to remind          the federal           government            that     state       and
 4   local governments             have      important          responsibilities
 5   as well.
 6                    It is a real pleasure,                      and I hope          every
 7   one of the governors                here understands,                    to be
 8   invited    back.         President          Clinton        said that on
 9   Monday    when    you invited             him back,          and I feel very
10   much    the same way.             It was a great                 privilege       to be
11   governor    of my home            state.
12                    And     12 years         ago, as Governor                 Sundquist
13   said,    I was the chairman                 of this        association,            and
14   there was a young              governor         from Arkansas              named
15   Clinton    who was the vice-chairman,                            and I have        been
16   trying    to figure          out ever         since      how he got ahead                of
17   me.     But he did.
18                    I want you also                to know before              I make
19   any remarks       at all that             instruct         governors         or even
20   make    suggestions          that     I know my place.                    I've told
21   almost    all of you that when we moved                            our family           to
22   Australia     after        I was governor,               that      the
23   Australians       explained           to me the difference                   between
24   what    I had been         and what         I am now.             The Australians
25   say,    "Rooster       today,        feather       duster         tomorrow."            And




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                   7




 1   I know     the difference.
 2                     The question            I'd like         to pose           today          is a
 3   question       that    has     to do with          a subject             that      is
 4   first    on my agenda,             first      on the agenda               of,      I
 5   believe,       every     governor         and     I believe            it's     the
 6   debate     that    really        counts       in America           and       that       is:
 7   How    do we create          the best         schools        in world           for our
 8   children?
 9                     I'd like         to look       beyond          the balanced
10   budget     and    look     beyond       welfare        reform          and     I'd like
11   to pose       the question          in this        way:          How     could         it be
12   that    the United         States       of America           does        not    have         the
13   best    schools       in the world            for our        children?
14                     I remember          very      well     in 1983,            I think
15   Governor       Branstad        and Governor            Janklow           and Governor
16   Hunt    are    the only        governors         who     are here            now       who
17   were    here     then,     but    you     remember         the     "Nation             at
18   Risk"     and you      remember         the very         direct          words         of
19   that    national       report:          Our     nation       is engaged                in
20   unilateral        disarmament.              We are       a "Nation             at Risk"
21   because       of the mediocrity               of our       schools.             Those
22   were    very     strong,       blunt      words       written          in hand          by a
23   Nobel     laureate       in this        country.           And     the governors
24   went    right     to work.          There       was    a Better           Schools
25   Program       in almost        every      state.         In 1985-'86,                  we




                   LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              8




 1   devoted    a whole     year working             together         to try to
2    improve    our schools.            That     one-year          project         became
3    a five-year       project.
4                  Then      there was the National                        Goals       Summit
 5   and then the states            worked       together          with      the
 6   President    to try to reach              the goals,            and then           the
 7   President    made     it number         one on his agenda.                        It was
 8   not just a lot of activity.                     There         was a lot of
 9   money.     We poured       the money          into the problem                    and
10   now we spend       about     five percent             of the gross
11   national    product      of this country                on education.                   We
12   recognized     it is important.                 We knew         that     if we
13   wanted    to be one country,              and if we wanted                   to
14   extend    our freedom        and give people                  opportunity           that
15   education    was at the bottom                of that.           So we charged
16   ahead.
17                 And we even were                innovative.               In
18   Milwaukee     and Cleveland,             we began         to show that
19   giving    children      choices        help kids who we were
20   afraid    would    be left out, we found                      they     could       move
21   ahead    quickly.       In 1991 there             weren't        any charter
22   schools.      Today     there      are 500.           Ten years          ago there
23   was no way to pay teachers                   more     for teaching                well
24   except     in one state        and now there              is a good way.
25   So a lot has been           done.        But unfortunately                   one of




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          9




 1   the things       that was done was to improve                         the
 2   national    report       card and make           sure that we could
 3   tell where       our children         are today.
 4                    And here     is what        the nation's              report
 5   card    tells us today:           That     about       a third         of our
 6   high    school    seniors     can read proficiently                     and about
 7   a quarter    can barely         read at all.                 It tells        us also
 8   that about       80 percent       of our high            school        seniors
 9   are not proficient           in mathematics.                  The governors'
10   own National       Goals     Panel      says that the progress                      we
11   have made    is modest.           And the question                   I would       like
12   to ask today with          some urgency            is this:            How could
13   that be?     How could        a country          that        since     1983 has
14   created    the Internet         economy,         has helped            bring       down
15   the Berlin       wall,    has put little             rovers          running
16   around    on Mars,       how could        we not have           created        the
17   best    schools    in the world           for our children?
18                    Now,    President        Clinton        said the other
19   day before       the principals           last weekend               that the
20   governors    have been        dragging         their         feet.      I don't
21   think    the governors        have been          dragging            their    feet.
22   I think    the governors          have actually               been     leading
23   the charge.        But I do agree             that     the nation            has
24   been    timid.     I mean,      this      is a nation           of pioneers
25   and astronauts          and entrepreneurs              and inventors.                If




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                   10




 1   we were    to measure            the success,            if we had been                  no
 2   more    successful         at our other            national         efforts             than
 3   we have been        at improving              our schools           over        the last
 4   15 years,       we'd     all be going            to college              in Germany
 5   and Japan.        We'd       be driving          all foreign-made                   cars.
 6   We would     have gotten            about       halfway          to the moon             and
 7   almost    all of us would               be living          on the East              Coast
 8   because    nobody        would      have gotten            across         the
 9   mountains.        We, as a nation,                 have been             too timid.
10                    Now,      the good         news     is that we've               figured
11   out what     to do.          And    in the time            I have         this
12   morning,     what      I'd like to suggest                   is that          the
13   things    that we have             in place,         that we figured                    out
14   to do, most       of them done              as the result                of
15   governors'       actions,          provide       an agenda           for us that
16   could    very    quickly         help us create              the best           schools
17   in the world.
18                    And the agenda               is this:            Number        one,
19   rigorous     standards,            set locally           not by Washington,
20   as a result       of the governors                 Achieve         Initiative.
21                    Number        two, master           teachers.                I mean      by
22   that,    end tenure          as we know           it.      Begin         to pay good
23   teachers     more      for teaching             well.        And give           these
24   master    teachers         control        of their         classrooms            by
25   making    every     single         public       school       in America             a




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                11




 1   charter    school,      free from union               rules      and
 2   government       regulations         that keep          these         master
 3   teachers     from creating           schools        that genuinely                meet
 4   the needs       of children.
 5                    And the third           thing      would       be to give
 6   busy parents       more     choices,        more      choices          of
 7   family-friendly         schools        so these         busy parents               can
 8   be better       parents.       That      I think        is the agenda.
 9   Rigorous     standards,        master        teachers,          choices          of
10   family-friendly         schools.
11                    It is an agenda             that has broad
12   bipartisan       support.        It is an agenda                that        is
13   already    under    way in many parts                 of the state.                   It
14   is an agenda       that has already                been proven              it will
15   succeed.        And so my question              is, if we then were                        as
16   bold    as we ought       to be in this country,                       how could
17   we not have       the best       schools        in the world                for our
18   children?        Let me just take each of those                             three
19   items    in some specifics:                First,       the standards.
20   What    President     Clinton        was really           talking           about
21   when    he said the governors                are    "dragging           their
22   feet" had to do with             the standards                proposal,           and I
23   can understand        his impatience.                 But I think                it's
24   not always       a bad idea to drag your                      feet if you're
25   going    down    the wrong       road.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           12




 1                    I tried     to support           the President's
2    proposal      which,    as I understood               it to begin             with
3    was take      the English        and math         tests        from the
4    nations'S      report     card and simply              make      it available
 5   to states      that wanted         to use it or wanted                   to
 6   incorporate       it in their          own testing.              I know        those

 7   tests.     Those    are good,          rigorous         tests.         Why not
 8   make   them    available?          But that's           not what's
 9   happening.
10                    The Department            of Education               is basically
11   creating      a new test       from scratch.                  And that makes              a
12   difference.        It makes        a difference               who the
13   Secretary      of Education          is.      Whether          it's Dick
14   Reiley,    whether      it's Lamar          Alexander           or whether
15   it's Phyllis       Schlafly        or whether           it's Marion
16   Barry.      You don't      know what          might       be in the tests.
17   And    I think    those     of us who are governors                      who have
18   been governors,         know     that math          is not necessarily
19   math    and English       is not necessarily                   English        when
20   Washington       gets   in the business               of defining             it.
21                    There's      a difference            between          tests       that
22   emphasize      phonetics,        for example,             and whole
23   language.        And that emphasizes                arithmetic           and
24   problem     solving     where      answers        are not quite               as
25   important.        The President            has suggested               that the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 Soutb 9tb Street, Las Vegas, Nevada   89101
                                                                                                  13




 1   math    test     might      be in Spanish.                Is that           really       a
 2   good    idea     if one of our major                   problems            is to try to
 3   keep    this     as one       country        where      we have            a common
 4   language?
 5                     So my advice             would       be don't            trust    the
 6   chef,    wait     to taste         the cooking            and move           ahead       with
 7   the governors'            project        which      gives         states'      school
 8   boards     a chance         to find        out what          are     the
 9   international           bench      marks       upon     which        we should           base
10   our    schools.         That's       the practical                problem.
11                     I remember           when      I was       governor,         I had no
12   way    to find     out      if the schools              in Oak        Ridge        or
13   Maryville        or wherever           were      administering               tests       that
14   really     met    international              standards.              That's        what
15   your    achieve        project       should       do,     that       should        move
16   ahead.
17                     The     second       item      on the agenda               has    to do
18   with    master     teachers.             And     here     I want           to be very
19   specific.         In order         to have        master          teachers,         we
20   have    to end     tenure         as we know           it.        This      is a touchy
21   subject.         But    there's        really       no reason              in the world
22   why    the men     and women           in our       classrooms,              no matter
23   how    good    they     are or how bad              they      are especially,
24   should     be guaranteed             a job       for    life       whether         they're
25   good     or whether         they're        bad.        Nobody        else     has       a job




                   LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada    89101
                                                                                          14




 1   like that.        There's      no reason          they should            either.
 2                 And there          also is no reason                    in the world
 3   why the talented          men and women,              who are our finest
4    teachers    in this country,              there       are millions             of
 5   them,    should    not be paid more               for teaching            well.
 6   In 1983 and       '84 when Tennessee                began       to do that,
 7   not one state was paying                one teacher             one penny
 8   more.     We have     in place         in Tennessee             sort of the
 9   Model    T of the effort,            but there          are 10,000
10   teachers    who are being            honored        in that way.               The
11   good news    is that during              that same amount                of time,
12   this country,       led by Jim Hunt and George                          Voinovich
13   and several       other    governors          in this room,              have
14   created    the Board       of Professional                Teaching
15   Standards    which      gives      every      school          board     in the
16   country    a way to give a good                  teacher        more     than a
17   pat on the back and a red rose,                       and seven          states
18   are doing    something         about       it.
19                 The new national                teacher          of the year,
20   Sharon    Draper,     is from Cincinnati.                      She's     an
21   English    language       teacher.           She gets          2500 more
22   dollars    a year     from Ohio because                 she's         a good
23   teacher,    not because          she's been           there       a long time,
24   not because       she's gone back to school,                          but because
25   she's good,       and she told the governor                       that it was




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              15

                                                             •

 1   harder    to pass     the board          certified            test than        it was
 2   to get her graduate            degree.
 3                    Every    teacher        in America            should     have an
 4   opportunity       to be a master            teacher.            The board
 5   certified       teacher     is not the only way to do that,
 6   but it is a way that has been                     agreed        to by
 7   governors       and by unions          and it has the support                       of
 8   both parties       and the President                and leaders           of this
 9   association,       so there's          no reason            for states         not to
10   move    ahead    doing    that.
11                    The other       thing      that must           happen        in
12   order    to have real master               teachers           is to give           them
13   control    of the classroom.                Now,      in 1990 and 1991
14   that would       have been hard            to imagine.                There    was
15   not one single        so-called          charter        school.          But walk
16   into the City on the Hill                  Charter          School      in Boston
17   for example       today.       There       you'll       see 80 kids            in a
18   different       kind of school.              It is a public              school,
19   but it is on the second                floor      of the downtown
20   YMCA.     It gets     the same amount               of money           that every
21   other    public    school      does      in Boston,            but the
22   teachers    are free to use it in the way they want                                      to
23   use it to meet        the needs          of the children                who choose
24   to go there.        And the results               have been very
25   impressive.




                LAURIE WEBB & ASSOCIATES                         (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           16




 1                    In the first year,               reading        and math
 2   scores    were    up.     The number          of hours          of the school
 3   day were more.           The number          of days          the school        was
 4   open were     longer.         I sat in the math                 class        that had
 5   14 students       in it.        I'm not here            to say that            it's
 6   already    one of the best             schools        in the world             but it
 7   has permission          to be, and the children                       have
 8   permission       to go there,          and we have             500 such
 9   schools,     some better,          some worse,            but all with              that
10   opportunity,       that seems          to be enough             of an
11   experiment       so we can say every                school        should       be a
12   charter    school.        Free enough           of union          rules       and
13   government       regulations         to give        teachers           a chance       to
14   create    schools       that meet        the needs            of children.            So
15   number    one,    rigorous       standards          and number           two,
16   master    teachers       and the other            area        has to do with
17   giving    busy parents         a chance         to be better             parents
18   by offering       them choices           of family-friendly
19   schools.
20                    Now,    here's      what      I mean         by that.         An
21   immigrant     family      in this country,                a family           that has
22   just arrived       ought      to have        a choice          of the school
23   that   immerses     their       child      in English.                I believe
24   most   of them would          like to have            that and I know
25   most   teachers     would       like to see it.                 You can go




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                  17




 1   across     the    southwest          boarder        from     Texas         to
 2   California        and walk         into      the classrooms                and you          can
 3   find    children        dropping         in in the middle                  of the year
 4   not    speaking     a word         of English.
 5                     You     can     find     classrooms             where     70 percent

 6   of the     children         who    start       the year           aren't        there       at
 7   the end of the year.                   They      can't      keep      up and you
 8   can    imagine     how hard          it must        be to teach             those
 9   children.         That      option       should       be available               to
10   parents     who    have       just     arrived        in this         country.
11   Parents     should        have     choices        of safe          schools.            Some
12   parents     need    choices          of better          schools.            In
13   Milwaukee,        and     in Cleveland            more      recently,            we have
14   seen    what     happens        when     you     give     poor       working
15   parents     choices         of better          schools.
16                     They      have     cut     in half        in Milwaukee               the
17   difference        between         what     the    inner       city
18   African-American              kids     have      been     learning          and       the
19   white     kids    have      been     learning.            That       is the way             to
20   make    this     country's          freshman        college          classes          look
21   more     like    the country.              That     is the         fair     way       to
22   grant     people    Affirmative              Action,        give      them       a chance
23   to go to a better               school.
24                     Another         choice       that     families           need       to
25   have     involves       home-schooling               families.             In 1983,




                 LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada    89101
                                                                                              18




 1   probably    a few thousand                families         home-schooled
 2   their    children.          Today,        it's more         than one
 3   million.        I respect         those       families           for doing       that.
 4   All of them do that under                    a set of regulations.                          In
 5   a sense,    every        child      would      be better           off to be
 6   home-schooled.             My mother         taught        me to read.             So
 7   did yours       most     likely.          She gave         me my library
 8   card.     She took me to my first                      music       lesson.         That
 9   should    be the function               of the family.                   And the
10   public    schools        ought      to make        themselves             accessible
11   to home-schooling              families        who would           like to use
12   those    schools       for a chemistry               course        or for a
13   phys-ed    course        or for another              sort of course,               and
14   governors       can help         lead that.
15                    And then         just one more              example        of
16   family-friendly            schools,         and to me this                is really
17   the outrage       of the decade.                 Some      families         school
18   their    children        at home but 70 percent                     of women
19   today    with    young       children         go to work           away     from the
20   home.     And the biggest               problem        they have with              their
21   families     are the scheduling                  problems          created        by
22   schools     that don't           fit their         needs.          Don Sundquist
23   mentioned       that     in my private             life,         I helped        start       a
24   company     that helps           companies         be family-friendly.
25                    In other         words,        we for Barnett              Bank       in




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                      19




     1   Florida,       we run a child              care     center.          We run        a
     2   kindergarten          and we help            them     run a public               school,
     3   so a woman        who     lives      in Jacksonville                can     take       her
     4   child    to work        from      the    time     the     child       is a baby          to
     5   the    time    the    child       is in fourth            grade,          be with       the
     6   child    at her break,             be with        the     child      to and        from
     7   work,    be with        the child          at lunch         and know         that       the
     8   child    is safe.           That's       not     a requirement,              that       is
     9   simply     an option.            That      is an option             that     working
    10   families       ought      to have.
    11                     We all make            speeches         about       sex and          drugs




•
    12   and    TV and pornography                and all        the bad           things       with
    13   the    family.        Well,      when      does     the     crime         wave    start
    14   in Nashville?             3:00      in the afternoon                when     school          is
    15   let out.        When      are     the    largest        number       of teenage
    16   pregnancies          occurring?            In the       afternoon           when       the
    17   kids    are unsupervised.                  When     do kids         go home        and
    18   find    pornography           on the       Internet         and get         in
    19   trouble?        Why we,         as a nation,            should       expect        11-,
    20   12- and       13-year-olds           not     to get       in trouble             when
    21   that's     what      11-,     12- and        13-year-olds            have        always
    22   done    if they       could,       boggles        my mind.
    23                     And     in Murfreesboro,                Tennessee,             which
    24   Governor       Sundquist          will     tell     you     is a conservative,
    25   wonderful        little       town      that     hasn't       had     a radical




                       LAURIE WEBB & ASSOCIATES                        (702) 386-9322
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 1   thought    since the civil war,                 12 years         ago they had
 2   one.     They opened        their      schools        from 6:00 to 7:00
 3   every    day, all year,          at no extra            cost to the
 4   taxpayers.      The parents            paid     the bill.              It cost
 5   them a dollar       an hour.           They don't             turn away a poor
 6   child,    haven't     yet.       There      are academic              programs
 7   and 80 percent        of the parents              in that little
 8   community    use those public                schools          and those     extra
 9   hours.     If you were         in private           business           and you had
10   that kind of market            opportunity,             you'd         go for it
11   like a Mack     truck,        and I do not know why our nation
12   does not make       it its business               to give        families        more
13   choices    of schools         to help busy parents                     be better
14   parents.
15                  Well,      some might          say that kind of agenda
16   is not really       realistic.             The idea that without
17   some federal     mandate,          the governors               could     help and
18   persuade    every     state      and school           board      to set
19   rigorous     standards.          Or ending          tenure       as we know        it
20   or giving     every     teacher        a chance         to be a master
21   teacher,    or making         every      school       a charter          school,
22   or giving     families        more     choices        or even doing          one
23   more    thing which       is, I think,            the thing            that the
24   federal    government         can do that would                 most help
25   create    opportunity.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1                       We could          borrow      Governor           Zel Miller's
 2   concept       and    say,       Why    not     have     a hope        scholarship
 3   for children?               Why     not    take     the money             that       the
 4   federal       government            spends       on elementary                 and
 5   secondary        education,            and give         it to the parents                    and
 6   let them       choose         the     school      and     not       give       it in
 7   programs?           In other          words,       let the          federal
 8   government          help      to create          the best           schools.           The
 9   same    thing       it's      done     for     60 years,            to help          create
10   the best       colleges.
11                       Well,       maybe      that's       not     realistic.                 But
12   let me remind             you     of another          former         member          of this
13   association,          one who,            like    Governor           Clinton,          also
14   became     president.               His    name     was     Ronald          Reagan,         and
15   in 1987,       in the next             to the        last     year        of
16   presidency,          he was         planning        a trip          to Berlin          and       in
17   the    speech,       he had         these      words,       "Mr. Gorbechev,
18   tear    down     this       wall."         There      was     great         debate         about
19   that    and    the White            House      staff      at the          State
20   Department          and     the major          objection            was     that      those
21   words     were      so unrealistic               that     it would             seem
22   unpresidential              for Mr.        Reagan       to say them.
23                       Well,       of course,          you'll          remember          that       he
24   did    say them.            And     with     two and        a half          years      later,
25   that    unrealistic             set of words            turned        out       to be more




                   LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                               517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              22




 1   realistic    than a lot of people                   thought           and the wall
 2   came down.        I suppose        it wasn't          realistic          for the
 3   pilgrims    to come here,            for the patriots                  to get
 4   upset.     It wasn't       realistic          for Thomas              Edison    to
 5   try 10,000      times with a light bulb or to charge
 6   Normandy    or to think          about      putting           rovers     on the
 7   moon.     This country         has not been distinguished                           by
 8   being    realistic.         It's been distinguished                      by being
 9   bold.
10                   In the early           1980s,       about       the time of
11   the   "Nation     at Risk"       Report,        the president             of
12   General    Motors     had a vision.               The car companies                  of
13   America    were    in trouble.            The competition                from the
14   foreign    cars was stiff.               So Roger         Smith,        the
15   chairman    of General         Motors,        said,       "Why not try to
16   create    one of the best            cars in the world?"                      And he
17   picked    a team of a hundred               people        to figure           out how
18   to do it.       50 of them were management,                           50 of them
19   were union,       and they spent             a year       and then he said,
20   "Let's pick a fresh place                  and start           from scratch
21   to do that."
22                   I was one of the governors                        trying       to
23   help persuade       him that we had the freshest                          place          in
24   the world    for such a plant,                 and I remember             what       I
25   said to Mr. Smith.              I said,        "Mr. Smith,             we already




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                               23




     1   have    in Tennessee,         the Nissan          plant.          It's
     2   producing       the car that you're               trying        to beat.         It's
     3   non-union.        Why don't        you put your               Saturn     plant
     4   right    next door       to the Nissan            plant        and then tell
     5   your    union    and tell your management                      if they can do
     6   it, you can do it?"
     7                   Well,     most people           in the world             now know
     8   the story.        Today     the Nissan          plant         is still     there.
     9   This year       it was rated         the most         efficient
    10   automobile       plant    in America,           as well         as the
    11   largest.        16 miles      away     is the Saturn             plant.         And




•
    12   just this year        Saturns        are beginning              to be sold in
    13   Tokyo.     Roger    Smith      may not have been                  realistic,
    14   but his vision        in America           worked.
    15                    There's      another        story      about         Saturn    that
    16   is not as well        known.         Albert       Shenker,            the late
    17   leader    of the America           Federation           of Teachers,            heard
    18   about    the Saturn       car and said,             "Why not a Saturn
    19   school?"        This was right           after      the       "Nation     at
    20   Risk".     And so there was a flurry                      of activity           and
    21   the governors       and a variety             of others          got busy
    22   trying    to do the same thing with                     our schools            that
    23   General    Motors     was doing          with     that Saturn            car.
    24   Well,    we know    the outcome            of that.            I think     the
    25   outcome     is this:        We didn't         get it done,              but we




                    LAURIE WEBB & ASSOCIATES (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada   89101
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 1   figured    out how to do it.                Both      the roosters                who
 2   are here    today      and the feather              dusters           who were
 3   here before      and lots of other                people        working           hard
 4   as well.
 5                   So here      is what        my hope would               be.        When
 6   some   future    Governors'          Association              invites        Governor
 7   Miller    or Governor        Voinovich          to come back                and
 8   reflect    a little      bit on what            has happened                since
 9   they   left and what         might       happen       in the future,                I
10   hope   that they can tell              the story         of the Governors'
11   Association      meeting       of 1997 and how those                        governors
12   took   stock    of what      had happened             since      the        "Nation
13   at Risk",      looked     at the country              and reminded
14   themselves      that    at the bottom             of every            opportunity
15   and problem      we have       is our education                 system.
16                   And then went            home     to their            own
17   communities      and assembled             their      unions          and
18   assembled      their    teachers         and assembled                their       school
19   boards    and assembled          their       leaders          and said,           Look
20   at the City On The Hill                Charter        School          in Boston,
21   look at Sharon         Draper      being      paid      more      for teaching
22   well   in Cincinnati,           look at the children                    in
23   Milwaukee      learning       a lot more,           these       are the
24   children     that we're        most worried             about.          Look       at
25   how the federal         government           has helped,              through




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         25




 1   scholarships,       create      the best         universities              in the
 2   world,    and I hope the story                that Governor             Miller
 3   and Governor       Voinovich        can tell was that the
 4   governors    in 1997 went           home and said to all these
 5   people    in their     communities,             "If they can do it, we
 6   can do it."
 7                 And the end of the story would                            be the
 8   country    that created         the Internet             economy,          put the
 9   rovers    on the moon,         charged       Normandy,           has 25
10   percent    of all the money             in the world,                is the only
11   super power     and still         has almost           all the best
12   universities,       that country            created          the best       schools
13   in the world       for its children.
14                 Thank      you.
15                           (Applause.)
16                 GOVERNOR        MILLER:          Thank         you,    Governor,
17   for bringing       the passion          that has epitomized                  your
18   public    career    for quality           education           to us today          and
19   especially    your     challenge          for us to take action
20   which    you have    throughout           your     career.           The
21   secretary    governor        has agreed          to take         some
22   questions    at this point            in time,         so, yes,         Governor
23   Carper.
24                 GOVERNOR         CARPER:         Governor         Alexander,
25   thank    you for being         with us today.                 It's good       to




               LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
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 1   see you.        We've    wrestled        in our state,                as I know
 2   other    states    have,     on how to do as what                      you
 3   suggested       is to make       sure      the good           teachers        are
 4   paid    better.     Historically,             our state's              pay
 5   structure       for teachers         has been         driven          by two
 6   components.        One of those            is education,               to the
 7   extent    that a teacher           graduates          from college                and
 8   goes back       to get further           postgraduate             credits          and
 9   degrees,       Masters    and Ph.D.,          they      earn more money.
10   To the extent       that they          simply       serve       more     and they
11   teach    more,    they traditionally                and historically
12   earn more money.
13                    About    a couple         of years           ago, we decided
14   that    this    is really      following          the lead of Governor
15   Hunt,    but the idea of trying                 to help         our teachers
16   to become       nationally       certified,           which       is a
17   time-consuming,          costly      endeavor,          and what         we
18   decided    to do was to help               fund that           initiative           so
19   they wouldn't       have      to pay       for it out of their                     own
20   pocket,    and to the extent               that     they become
21   nationally       certified,        beginning          this year,             we
22   provide     an extra      $1500-a-year            stipend         for those             who
23   become    nationally        certified.
24                    The other       thing       that we're           beginning             to
25   do, and this       is really         more      of a question,                is we're




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   beginning     to develop         welfare        standards             for what we
 2   expect    kids    to know and be able                 to do in core
 3   subjects.        We are in a process                of developing              an
 4   assessment       to measure        student        progress            toward    those
 5   standards,       and also to include                in that           assessment,
 6   a national       component       that says how our kids                    are
 7   doing    toward    making      progress         on national             standards
 8   of the national          test as part           of our local             test.
 9                    The part      that we are wrestling                     with       now,
10   and I've asked        our new Secretary                 of Education            to
11   put together       a team to help             figure          it out,     it's on
12   accountability.           What     consequences               should     there       be,
13   positive     or negative,          for students               who do well           or
14   don't    do well,     for schools           that do well               moving
15   their    students     towards        the standards              or don't        do so
16   well.
17                    We've    decided,         and this may be a bit
18   premature,       but we're       not convinced                that the best
19   thing    to do in order          to get to reward                teachers,           is
20   to give     a single      teacher        more money            in a school,
21   but rather       to say to that school                  if the whole
22   school    body,    if the school            body      makes      progress
23   toward    meeting     the standards             or exceeding             the
24   standards,       then we reward            all the teachers.
25                    And the idea is to try to bring                          peer




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
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 1   pressure     from one teacher              to another           teacher        if you
 2   got somebody     who's       not carrying             their      load,        for the
 3   other    teachers     to say,        "Look, we'd              like to have a
 4   bonus.     We would       like to be eligible                   for a
 5   financial     bonus.        The way for us to do it is for
 6   all of our students            or most of our students                        to make
 7   progress."      And that way you don't                        single     out a
 8   single    teacher     for a reward,             but you use the
 9   pressure    of all of one's              peers      to get        -- to earn
10   the collective        reward.          I'd just ask you to respond
11   and your     thoughts       on that.
12                  FORMER       GOVERNOR        ALEXANDER:                I can
13   understand     the question            very well because
14   particularly     with       the history           of teaching,            some
15   teachers     are reluctant           to be singled              out.      But we
16   found with our Master              Teacher        Program         in Tennessee
17   that there were         10,000       of our 40,000              teachers        who
18   were willing     to go through               an evaluation              process
19   that was entirely           voluntary          so they can be paid up
20   to 7000 more dollars             a year,        so they were willing
21   to do it.      And    I don't        see how we can keep talented
22   men and women        down     in the classroom                 if we don't        pay
23   them more.
24                  I mean,        back     in the 50s, 60s and 70s
25   when options     for women           were      limited         in the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              29




 1   workforce    of this country               and not as many                  intended
 2   to work    away   from home,           we had a disproportionately
 3   large    number   of very        talented         women       who were         in the
 4   classroom,     but then along              comes      IBM and the
 5   companies     in Delaware          and Tennessee              who want more
 6   talented    people,       and they're           offering          $80,000          and
 7   we're    offering     30, you know,             to be in a classroom.
 8                  So I do think you have                     to protect           the
 9   collegial    attitude         within       a classroom.                That's       why
10   I think    those who've          worked       on the National                 Board
11   of Professional         Teaching         Standards            have done        a
12   service    because      the teaching            profession             apparently
13   feels    comfortable        with     the board          certified            teacher
14   concept.
15                 And if they do and as long as it's
16   rigorous,     I would       take     it and run with                  it.     And my
17   goal would     be that        five years          from now or sometime
18   before    too long, you'd            have a core of master
19   teachers     in every       school       and 30, 40 percent                   of
20   their    salary   would       be the board            certified             part    and
21   the rest would        be the tenured              part,        and then you
22   would    just turn over          to those         master        teachers           the
23   control    of that school            and the implementation                        of
24   the curriculum.
25                  People       say that because                  of technology,




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
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 1   we're not going         to need as many talented                           teachers.
 2   I think    just the reverse              is true.             I mean,        we don't
 3   have less talented           people       working         at the Saturn                 and
 4   Nissan    plants    because        they have robots,                  we have
 5   more talented       people.          We're      going         to need the same
 6   with teachers,        so, Governor,             I would         pay teachers
 7   more    for being     good,      individually.
 8                 GOVERNOR         MILLER:          Governor         Hunt.
 9                 GOVERNOR         HUNT:        Governor          Alexander            or
10   Mr. Secretary,        however        we should          refer         to you now,
11   first    I want to thank you for coming                         and for your
12   fine words    today and for your                  lifetime            of
13   leadership    for education.                 I recall         you calling               me
14   in the state capital             of North         Carolina            when you
15   were getting       your bill through,                 and I called
16   somebody    in your       senate       or somewhere,             you got that
17   done and that has continued                   to work and your
18   successors    have pushed            that in Tennessee.
19                 I really         appreciate           what you said about
20   master    teachers      today,       and I would              just want to say
21   to all of our colleagues                 here that that is not
22   something    to leave up to the educators.                                 We're
23   talking    about    raising        standards          for students,
24   having    them get better.               Well,      how do you think
25   they're    going    to get better              if they don't                have




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   better    teachers,       excellent         teachers          who can help
 2   them do that?         So what        I would        want       to say here
 3   today    in response        to your words             and in connection
 4   with    it is I hope governors                will      take the lead on
 5   improving     teaching        in your       states.
 6                  NOw, there are a lot of ways                           to do it.
 7   One thing we need to do is to improve                             the
 8   preparation     of teachers.               You gave this leadership
 9   as President       of the University                of Tennessee.              All
10   of us need to encourage                and push         and insist           that
11   our departments         of education            in our universities
12   become    better.       And you know            it's hard to change
13   universities.         But governors             can do something               about
14   that,    and there's        some good models                  in this country
15   where    they're    doing      that.
16                  Second,       we ought         to push to raise                the
17   certification       standards          or the licensing                 standards
18   in our states.          This year          in North           Carolina,       here's
19   what has been happening.                   If you taught              two years
20   and nothing     bad happened,              they sent you a license
21   in the mail.        You automatically                 got it, you know,
22   at the end of two years.                   Well,      this year,             I had a
23   big program     to raise         standards          and to raise pay,
24   you ought     to do them together,                  and we insisted              that
25   they go through         a real process,               including          a




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 1   portfolio,       including       being      assessed          and evaluated
 2   more often       and so forth,          before        they even get
 3   licensed,       that permanent           license.
 4                   And then,        of course,           it ought          to be
 5   tougher    to get tenure           if you have that,                   which    I
 6   believe    you're     going      to do away with,                but
 7                    FORMER    GOVERNOR         ALEXANDER:                As we know
 8   it.
 9                    GOVERNOR      HUNT:         If you have              it in the
10   states,    you ought        to make        it tougher           to get it and
11   easier    to do away with            it.
12                    Then the third            thing      that you touched
13   on, Governor,       was the matter              of the national                board,
14   and I want to use this opportunity                            to thank
15   Governor     Voinovich,        Governor         Branstad,             Governor
16   Cane and others,          Governor         Rosco      is serving          as a
17   member    of that board          of directors             now and to share
18   with our governors           what the states                  are doing.
19                    First    of all, many            states        are paying          the
20   $2,000    fee for teachers             to go through              this
21   process.        It is a long,          tough process.                  It's risky
22   for teachers,       and they would              have      $2,000        to put
23   up.     Our state     legislatures             can do that.              And    I
24   would    urge    that we push          that in all of our states.
25                    Second,      give them a few days when we pay




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
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 1   a substitute       where       they go through                 this process,
 2   including       assessment,         and then pay them more                     for
 3   being    better    teachers.            If they get it, they proved
 4   it, then we ought            to pay them more.                   Delaware,
 5   $1500;    Ohio,    $2500;       Mississippi            is paying         them an
 6   extra    $3,000.       We're      going       to give          them an extra             12
 7   percent    in our state.              Oklahoma         has topped         us all.
 8   They    are going      to give        them an extra              $5,000       if they
 9   achieve    these     high      standards.            So as Secretary                of
10   Education,       you gave        leadership          to this.           You
11   endorsed     this.       You helped           push     it.       I want       to
12   thank you for that and hope                     that,      as governors,             we
13   can go home       and do something               about         this right          now.
14   Thank    you.
15                    GOVERNOR       MILLER:          Thank         you,    Jim.        I can
16   take one last question                from Governor              Schafer,          then
17   we've    got to move         on because          our next          speaker's         on
18   a tight    time line.
19                    GOVERNOR        SCHAFER:          Lamar,        you mentioned
20   local    school    boards        in your        talk.          My question          is,
21   if we want       to pursue        local       control          and the
22   responsibilities           of the school             boards        and parents
23   and teachers       and students             even at the local                 level,
24   how do you tie in that                local      control         and
25   responsibility         with,       in fact,        a national           direction




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 1   for academic       performance?
2                     FORMER       GOVERNOR         ALEXANDER:                Well,    Ed, I
 3   had a little       discussion             with     George        Allen      about
4    that yesterday.             To me, national                doesn't         mean
 5   federal.      This       is a national             meeting.              Education       is
 6   a national       problem,         and I've been             at the forefront
 7   of trying     to keep         Congress         out of some national
 8   problems.        Now,      the way our country                   works,      unlike
 9   Belgium,    unlike         many     European         countries,            is that we
10   work    as a nation          community         by community,               school      by
11   school,     family       by family.            So I think           the
12   Governors'       Standards          Initiative           which      is to create
13   a clearinghouse            so that        local      school        boards        can
14   find out what          international             bench      marks         are or so
15   that governors           can find out what                 international
16   bench    marks    are and embarrass                  local       school      boards
17   is the only way really                  to reach         a good          result.        So
18   I like to see national                  leadership           on education.
19                    And     I think        there      are a handful             of
20   things    that the government                   in Washington              can do
21   such as a scholarship                 for poor         kids      like the Pell
22   Grant,     the Hope        Scholarship            for Children.              But       I do
23   not like the idea of a test made                           in Washington               that
24   all children       in North           Dakota       or Tennessee             are
25   required     to take.            I'm not sure that                 test     is the




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           35




 1   kind    of test that we would               want,       and I would            like
 2   to have the option           of making          that decision             for
 3   ourselves.
 4                    GOVERNOR      MILLER:          Thank         you, very much.
 5                    Whether      in a business             suit or a plaid
 6   shirt,    you deliver        a powerful           message         and we
 7   appreciate       your being        here      today.
 8                    We're    going      to turn        for just a second                 to
 9   the consideration           of our proposed               policy      positions
10   and they we will be considered                      by the various
11   committees.        The policies            were     originally           sent to
12   the governors       on July        11, and the packet                  you have
13   reflects     those policies            with     amendments            made by the
14   Executive       and Standing         Committees           at this meeting.
15   They    require    a two-thirds            vote     of those present              and
16   voting    to be passed.
17                    To expedite         matters,         will      the committee
18   chairs    move    the proposals            of each        committee        in
19   block    except    where      there      is a request             made    to
20   consider     a policy       proposal         individually.               We'll
21   begin    with    the Chairman          of the Committee                on Natural
22   Resources,       Governor      Whitman.
23                    GOVERNOR      WHITMAN:           Thank        you,
24   Mr. Chairman.         The Committee             on Natural            Resources
25   acted    on nine policies.               Most     notably         is the policy




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         36




 1   on the electric        industry         restructure            because       up
 2   till now, the NGA did not have a policy                              on
 3   deregulation      of the nation's              retail        utility
 4   industry.      Most    states,        as we know,            are exploring
 5   retail    deregulation        and several            have already
 6   enacted    to provide        for open competition                    among
 7   retail    power   providers.            The trend,           as so many
 8   trends    do in the states,             has gotten           the attention
 9   of Congress.
10                  Several      Congressional              committees           are
11   exploring     legislation         on the issue and the
12   Committee    on Natural         Resources          believes          it's
13   important     for the governors              to guide          Congressional
14   deliberations       because       regulation           of retail
15   electricity       has been primarily               a state
16   responsibility.
17                  The Natural          Resources          Committee           approved
18   a policy    that calls        on Congress            to insure            that any
19   legislation       it may approve            respect          the actions
20   taken by states        that have already                 begun       to
21   deregulate,       avoid    imposing         a deadline          by which
22   states    are forced       to deregulate             and guard            against
23   structural     changes       to the industry                 that would
24   impede    state    efforts      to comply          with       the Clean Air
25   Act.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                               37




 1                  The committee              also amended            and renamed
 2   our policy     on the state/federal                    relationship             in
 3   adopting    the changes           made by the committee,
 4   governors     who emphasize             our contention                 that states
 5   and federal     agencies          are co-equal             regulators.               Both
 6   have    important      duties       in protecting              our
 7   environment.         The revised            policy       entitled
 8    "Federalism:          New Directions              for State            and Federal
 9   Partnership     for Environmental                  Protection"            will
10   reaffirm    our position            that      states       are fully
11   committed     to protecting             the environment,                 and that
12   states    know best how to implement                       federal
13   environmental        laws within            their      borders.           What
14   governors     want     from the federal                government             is the
15   flexibility     to implement              those policies                and
16   programs    most     efficiently.
17                  Mr. Chairman,              I move       the adoption             of all
18   the policies       recommended            by the Committee                on
19   Natural    Resources'          own block.
20                  GOVERNOR         MILLER:           Is there         a second?
21                  (Response:             Aye. )
22                  GOVERNOR         MILLER:          Hearing         a second,           is
23   there    any further         discussion?             If not, we'll              call
24   for the question.             All those           in favor         signify       the
25   vote    by saying      aye.




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            38




 1                  (Response:          Aye. )
 2                  GOVERNOR      MILLER:          Any opposed?                 The
 3   motion   is carried.
 4                  We'll    now hear         from the Chairman                  of the
 5   Committee     on Economic        Development            and Commerce,
 6   Governor     Patton.
 7                  GOVERNOR      PATTON:          Thank         you,
 8   Mr. Chairman,     the Committee             on Economic              Development
 9   and Commerce     had a very          interesting             presentation              by
10   Governor    Roland,     the lead governor                   on technology.
11   We discussed     the Work        Force      Development              Programs
12   and what     states    are doing         to solve           the year        2000
13   problem,     and we also heard             an industry              report       on
14   the most     important      issues       facing       states         and
15   promoting     competition        in telecommunications                      and had
16   an extensive     discussion          about      the Surface
17   Transportation        Act being        considered            in Washington.
18                  We have nine policies                  to be considered,
19   one new policy        having     to do with           post      office
20   relocations.      Five of the nine we present                          without
21   change     from the drafts         that were          mailed         out,    that
22   one being     the post      office       relocations            policy,          one
23   transportation        conformity         policy,        the science              and
24   technology     policy,      the financial             services         industry
25   and the economic        development           administration                and




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          39




 1   disaster    relief.
 2                 Four of the policies                    have been amended.
 3   The telecommunications               taxes policy,              we added
 4   language    clarifying          that our intent                was to maintain
 5   state authority         without,         in any way, promoting                   the
 6   taxation    of telecommunications                   services.
 7                 Tourism,         we added          language        broadening
 8   federal    data collection             to include             charter
 9   flights.     On military           base      closure,          we added
10   language    calling       for a moratorium                on future        rounds
11   of the closures         pending        resolutions             of issues       from
12   the last three rounds,               and on transportation,                    we
13   added    language     calling        for a permanent                  fix to
14   return    trust   to the transportation                       trust     funds.
15                 If I could           take just a moment                   to review
16   what we've    achieved          in the area of transportation.
17   I think    the Governors'            Association              has had a major
18   impact    on what,      I believe,           an improved              attitude      in
19   the Congress      as opposed           to earlier             this year when
20   both    the House     and the -- both the Congress                         and the
21   President    was talking           about       reducing         transportation
22   spending    in the years           ahead,       even as the revenues
23   from the fuel taxes were                 increasing.
24                 We have         in the -- we established                     the
25   Coalition    for Trust,          Trust       standing          for




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           40




 1   Transportation        Revenues         Used     Solely         for
 2   Transportation.           That group           -- that organization
 3   with over,    I think,         a thousand           business           labor    farm
 4   groups    and other       state      and local          government
 5   organizations       has,      I believe,          been very            effective.
 6   The Congressional           budget       resolution            calls     for
 7   spending    13 billion         more      for highway            and transits
 8   over the next       five years.              That was in the budget
 9   resolution    passed        in May and just recently                      the
10   House    Transportation          Appropriation                Bill,     which       was
11   passed    by the House,          has added          an additional
12   $3 billion    to the transportation                     budget         for the
13   year of 1998.
14                 So if that is -- if that                         is, in fact,
15   sustained    by the Congress               and the President,                  it
16   will    represent     a substantial             increase          in
17   transportation        spending.            In fact,           spending     all of
18   the revenue     coming        into the fund,              including
19   interest    and beginning            to spend         down the balance.
20   But our    -- we have not achieved                    all of our goals,
21   but it would     appear         that we have been                 successful.
22   The big change        in the transportation                     policy     is to
23   request    that all of the money                  in the trust            fund be
24   spent    automatically         without         having         to go through
25   the Congressional           appropriation             process          every




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                   41




     1   year.
     2                     With    those      comments,         I move          the passage
     3   of all mine        resolutions          in block.
     4                     GOVERNOR      MILLER:           Is there           a second?
     5   Discussion,        Governor       Allen.
     6                     GOVERNOR      ALLEN:         Mr.     Chairman,             in
     7   relation     to EDC-21,         on the Telecommunications                           and
     8   Internet     Taxation        Resolution,           I think           that     what       the
     9   committee     has done,         Governor         Patton,         and     the
    10   members     of your       committee,          is a clear             improvement
    11   to what     was    originally         proposed         when      we got           here    to
    12   Nevada.      I think       that      you    have     two strong              ideas,       in


•   13
    14
    15
         my view,
         idea
         course,
                      that
                 of not
                     the
                              are
                            taxing
                                      colliding


                            sovereignty
                                        something
                                                 and
                                                        here.
                                                          and
                                                         freedom
                                                                        And
                                                                  the other
                                                                                one


                                                                         of states.
                                                                                       is the
                                                                                       is, of


    16                     This    policy      is an improvement                  in it, and
    17   I think     the    language       has now        broad         enough        and you
    18   added     a sentence       in there         which      I like          very       much,
    19   "The governors"           -- "This         policy      does      not     imply       the
    20   governors     support        raising        taxes      on the          Internet."
    21   I don't     think    there       should       be any       taxes        on the
    22   Internet.         I think      the    Internet         is a tremendous
    23   opportunity.         It should          not     be looked            upon     as
    24   another     thing    for states            or localities               to tax.
    25   Obviously,        sales    that      go over       it are        the     same       sort




                     LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                              517 South 9th Street, Las Vegas, Nevada   89101
                                                                                               42




 1   of problem,     as far as sales                taxes      being         collected,
 2   as you would       have over          a telephone              in that regard.
 3                  I think        that      the bills         before         Congress
 4   that we need       to work        on.       I think        it's not
 5   mentioned     in here,        but     it seems         to me it's
 6   appropriate     that       there      be a moratorium.                   The longer
 7   more    and more     localities           or states            impose        taxes       on
 8   the Internet       that have nothing                 to do with              sales       but
 9   just as a source           of revenue,           will make             the
10   resolution     that      is trying          to be worked               here    in
11   developing     a tax policy             that's       nondiscriminatory,
12   consistent     and easy         to administer,                 I think        that'll
13   make    it harder      in the long run.
14                  So personally              I support            a moratorium
15   grandfathering         those      who are already                imposing           this
16   tax, but nevertheless,                not make--           not exacerbating
17   a problem.      I will        vote      for this but with                    the
18   understanding        that      I do think          that        the bills           before
19   Congress     ought     to be worked            on and have              a
20   moratorium     should        be applied          as we go forward                   in
21   this regard,       but     I hope       I speak        for the majority                   of
22   governors.      If not,          I speak        for myself,             thinking
23   that there     should        not be taxes            on the Internet.                     I

24   think    it's a tremendous              opportunity,             and we should
25   not inhibit     it or burden              it in any such way.




                LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              43




 1                    GOVERNOR      MILLER:          Any     further
 2   discussion?        Governor        Branstad.
 3                    GOVERNOR      BRANSTAD:            In support           of what
 4   Governor    Allen     has said,          I just want            to make        it
 5   known    that    I'm recommending             that we eliminate                 the
 6   tax on the Internet            services         that      is presently              in
 7   place    in the State        of Iowa.           It was something                that
 8   was done administratively,                  and I think               it is
 9   wrong.     When    I was elected            governor,           I said we will
10   not tax interstate            telephone         services         and not
11   taxing    it has been very             helpful        to the growth             of
12   telecommunications            in my state.              Frankly,         I was not
13   aware    until    after     the fact that             this tax had been
14   imposed.        I disagree       with      it, and we are                     we have
15   legislation       that we will           be offering            to the
16   legislature       in Iowa to eliminate                  this tax, and I
17   have no problem         with     the resolution,                in that,        I
18   think    that    it should       be a state           decision,          but    I
19   think    it is in everyone's               interest           not to be taxing
20   the service       that's      important         to the education                of
21   our children       and to the competitiveness                          of our
22   country.
23                    GOVERNOR      MILLER:          Any     further
24   discussion?        If not, we'll             call     for the question.
25   All those       in favor      signify        by saying          aye.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         44




 1                 (Response:          Aye.)
 2                 GOVERNOR        MILLER:          Any opposed?             Motion
 3   carried.
 4                 And the last standing                    committee        report
 5   will    come from the chairman               on the Committee               on
 6   Human    Resources,      Governor         Carper.
 7                 GOVERNOR        CARPER:          Thank         you,
 8   Mr. Chairman.        On behalf          of our vice-chairman,                    Tom
 9   Ridge    of Pennsylvania          and myself,            I would       report
10   that our Human       Resources          Committee            met on Monday
11   afternoon,    and we completed               what      I would       describe
12   as the second      half of the twin bill.                       First       half of
13   the twin bill began           in February            with      a discussion
14   of what we are doing            in our states                to reduce       the
15   likelihood    that children             are going            to get on a
16   track    that will     lead them to a life of crime,                          and
17   back    in February,       we focused          in Washington            on ideas
18   that are working         for various           states         for kids
19   between    the ages of zero and five.
20                 On Monday,          we focused           on ideas        that are
21   working    to deter      children         from lives of crime                 and
22   we focused    on the ages really                 from kindergarten
23   through    grade   12, and we heard                presentations             from
24   Hawaii    and Governors         of Washington                State    and
25   Michigan,    Pennsylvania,            Delaware,          North       Carolina,




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             45




 1   Virginia    and others.           It was illuminating.                       I

 2   thought    most    helpful      and enable           us as governors                   to
 3   do what we do best           and that is to share                     good       ideas
 4   and to steal       them.
 5                    We had a couple            of folks who
 6   participated       with us and shared                with us their
 7   view.     They    include      Katie      Haycock        of the Education
 8   Trust   and Robert       Woodson        of the National                Center          for
 9   Neighborhood       Enterprise.
10                    At the conclusion             of that discussion,
11   Mr. Chairman       and colleagues,             we moved          and acted             on
12   five policies       as amended.             One interim              policy       which
13   we would     like to see become              permanent           policy.           We
14   acted   on two new policies,                and we reaffirmed                    one
15   existing    policy.        I'm not going             to get into the
16   details    of each of those policies.                         I'd just           say on
17   the two new policies,             one of those               dealt     with       gang
18   violence    and the policy            calls      for increasing
19   coordination       and information             sharing         between           state
20   and federal       government        that urges           technical
21   assistance       from the federal             government             and urges
22   our U.S. Attorneys           to prosecute            gang members                for
23   violating     federal      laws without            federalizing              --
24   without    federalizing         criminal         law under            state
25   jurisdictions.         That was a new policy.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              46




 1                  The other         new policy,            this     is one that
 2   is, I think,     of interest             to all of us.                You may
 3   recall    on your welfare            reform       legislation            adopted
 4   last year     there     is the potential                for states         to earn
 5   performance     bonuses.           Those       states         are doing        an
 6   especially     good     job of moving             people        from
 7   dependency     to self-sufficiency                  and also performance
 8   bonuses    for the states            that     are doing          an especially
 9   good    job in moving         -- in reducing              the likelihood
10   for teenage     pregnancy.
11                  And what        we've       done with           our policy           on
12   welfare,     high performance              bonuses        and outcomes              is
13   to simply     to spell out how we achieve                        those     goals,
14   to identify     the key principles                  that will           serve       as
15   the foundation        for a high performance                     bonus
16   system.      So what      I'd like to do at this time
17   without    objection,         Mr. Chairman,             to move         on behalf
18   of Governor     Ridge       and myself          and our committee,                   the
19   five policies       as amended,            one interim           policy,        and
20   two new policies          and the reaffirmation                       of one
21   existing     policy.
22                  GOVERNOR        MILLER:           Is there         a second
23   Governor     Ridge?       There's        a second.             Any discussion
24   on the motion?          If not,        call      for the question.                   All
25   those    in favor     signify        by saying          aye.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          47




 1                  (Response:          Aye.)
 2                 GOVERNOR         MILLER:          Any opposed?            Motion
 3   carried.
 4                 GOVERNOR         CARPER:          Mr. Chairman,            I have
 5   one quick    "P.S."          Sometimes         we get to take credit
 6   and governors       do a lot of work but it/s important
 7   that we acknowledge            the members            of our staff.             I
 8   would    certainly         do that with Nolan                 who serves       as
 9   our staff    director         on Human         Resources.             I just want
10   to take a minute       l     if I can, to say to the Jennifer
11   Bagstagal    who has worked              real hard on behalf               of all
12   of us on Children/s            Help,       a real       special       thank
13   you.     And Susan         Gilocka     and others             who have worked        l




14   who continue    to work very               hard on welfare              reform       to
15   maximize    the likelihood             that we can really                move
16   people    to work,         a special       thank you to her as well.
17                 GOVERNOR         MILLER:          You are indeed
18   fortunate    to have         such an incredible                 staff    and
19   weill    just complete          the business            quickly       here.         The
20   Executive    Committee          has one policy                on children's
21   health.
22                 Governor          Leavitt    l     if you/d        move    that.
23                 GOVERNOR          LEAVITT:          In the interest              of
24   time, Mr. Chairman,             I'll just point                out this    is an
25   interim    policy     that has been              followed         in our




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           48




 1   negotiations       with     the Congress            related           to
 2   children's       health.       It's been a very effective
 3   policy    and that it's guided                essentially              the
 4   crafting    of the bill,           the bill         that ultimately              or
 5   the program       that ultimately             passed          or will pass          the
 6   Congress    according         to the negotiations                     between    the
 7   White    House    and the Congress              followed         this almost
 8   entirely    with    the exception             of one important                 area,
 9   which    was the ability           of who would               define
10   benefits.
11                    We were disappointed                 in the way that
12   turned    out but for the most part                     this has served               us
13   well,    and I recommend           it to the body as our
14   continuing       policy.
15                    GOVERNOR      MILLER:          Is there         a second?            Do
16   I hear a second?            There's        a second.            Any discussion
17   on the motion?           If not, call for the question.                             All
18   those    in favor       signify      by saying          aye.
19                    (Response:          Aye. )
20                    GOVERNOR      MILLER:          Any opposed?                 Motion
21   carried.     That completes              the committee                portions      of
22   the agenda.
23                    Now,    I'm sure that we are all looking
24   forward    to hearing         from the man who lives                       in the
25   future    that we plan          for every         day.         It truly        is a




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           49




 1   pleasure    to introduce           Bill Gates,            the chairman           and
 2   chief    executive      officer        of Microsoft             Corporation.
 3   Microsoft     is the world           leader       in computer            software
 4   with    1997 revenues        of 11.8 billion,                  of which        over
 5   2 billion    was reinvested              in research            and
 6   development.
 7                    In addition,          Microsoft          employs        over
 8   15,000    people    in 45 states.               In anticipation                of his
 9   being    here,    the first        couple       of Mississippi,                Kirk
10   and Pat Fordice         related        a story        to my wife which
11   she has passed        on, of a meeting                they had many years
12   ago of a gentleman            in discussing             as we frequently
13   do, our families          who was a very              proud      parent        but a
14   little    concerned       at the moment,              that his son had
15   chosen    to drop out of Harvard                  to start            a small
16   business    and wasn't          sure if that was the right
17   course.     I suspect         that your         dad now realizes                you
18   made    the right     choice.          And certainly              the rest of
19   us do because       not only have you been                      successful,
20   but you have donated             nearly        $500 million             into
21   charities     and education,             libraries            and access        to
22   technology.
23                    His book,        "The Road Ahead",                   sold 400,000
24   copies    in China      alone.         In his paperback                 update,
25   Mr. Gates     claims      that     interactive            networks        are a




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                     50




 1   major    milestone    in human        history.             We are all
 2   pleased    and excited      to have you here with us
 3   today.     Mr. Bill Gates.
 4                 MR. GATES:          Well,      good morning.              I want
 5   to thank Governor        Miller       and Governor            Locke     for
 6   inviting    me to be here.
 7                  It's a very exciting                time in the world
 8   of technology.        I believe         there's        an incredible
 9   opportunity     to use technology              in new and different
10   ways.     And so I've titled            my remarks           what    I call
11   digital    nervous    system.         And this is about                taking
12   these new ways of communicating                    and not only making
13   government    more efficient,             but also reaching              out to
14   citizens     in new ways.
15                  Before    I came down here,                  I got a chance
16   to look into all the different                   things        that are done
17   in state government,          and I have to say it was
18   amazing    to me, the complexity               of what you all have
19   to deal with.        Your budgets           are far bigger             than the
20   ones that     I manage.       On average,            you've        got over
21   four times     as many employees.                These       are really
22   challenging,     and I think,           fascinating            jobs.     It's a
23   little    too bad you don't           have better            job security,
24   stock options;       but otherwise,            a lot of fun things
25   to take care of.




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                      517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                51




 1                    When     I use this term,                "nervous            system,"
 2   what    I mean    is the way that                information             is
 3   managed.        If you think           about      keeping         track        of taxes
 4   or keeping       track of paper              forms      or the meetings
 5   that people       have,       that's       the nervous            system.           And
 6   because       government        is dealing          with        information           so
 7   much,    the efficiency            with      how you do that makes                     a
 8   big difference          in the quality              of service            and in the
 9   cost.
10                    Now,     "digital         nervous        system"         means
11   taking    computers         connected          up to networks                 and the
12   Internet,       and using        those       to do this           in a better
13   way.     And    so, for example,               taking       all the
14   information       that's        printed        today,       and it's there                 in
15   your printing         offices        and making           it easy         for
16   citizens       to get to it through                 any computer
17   connected       to the Internet.
18                    Now,     citizens         are interested                in more
19   information       if they could              easily       reach         out and get
20   it.     And    I believe        that     if we do this right,                       they
21   can participate           in a more          informed           and a more
22   regular       basis   in the Democratic                 process.              So what
23   are the pieces          that enable            this:        It's personal
24   computers,       electronic          mail,       the Internet,                the
25   ability       to send video          information            across        the




                   LAURIE WEBB & ASSOCIATES (702) 386-9322
                           517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                  52




 1   Internet     for     teaching           or medicine            or just        simply
 2   community-type             meetingsj          and    finally         the     idea       of
 3   electronic         commerce,          the ability            to do business
 4   across     the network.
 5                      These       technologies            are moving            at a
 6   really     unbelievable             rate.         Gordon       Moore,        the
 7   chairman     ojf     Intel,         came      up with        the     idea     of what's
 8   now   called       Moore's         Law.       That     every        two years,
 9   computer     chips         become       twice       as powerful.              And       so
10   that's     exponential             improvement.              And     in our        life,
11   there's     nothing          else     like      this.        It means         over       the
12   course     of 20 years,             you     get     a million          times
13   faster.      And     so computers,                the price          of computing
14   in the     last     20 years          has     become       a million          times
15   cheaper.       And       in the next            20 years,           we can     say with
16   great     certainty          it will        become       a million           times
17   cheaper     again.
18                      Well,       it really          changes.
19                      The     nature       of how you           think         about    a
20   computer.          20 years          ago    it was       mostly        for tracking
21   large     databases          and     so your        tax departments,                banks,
22   airlines     would         have     one very,          very        expensive
23   computer     with        lots      of people         taking         care     of it to
24   manage     centralized             information.
25                      As the price             came     down,         it became        much




                 LAURIE WEBB & ASSOCIATES (702) 386-9322
                              517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             53




 1   more    of a personal        thing.         An individual              could       own
 2   their    own computer,         create       documents,           look at
 3   different     what-if      scenarios          through         a spread        sheet,
 4   and now with       those     computers         being         connected
 5   together,     we have the most powerful                       communications
 6   medium    of all time.          And     so this        is why we say it
 7   is the Information           Age.       And the Information                   Age is
 8   changing    business       in a fundamental                  way.      It won't
 9   just be business,          though.          It will be the way we
10   entertain     ourselves,        and the way we educate
11   ourselves     in addition.            In fact,         the use of this
12   technology       in education,          I believe,            will be its
13   most positive       and pervasive             impact.
14                    In the field of entertainment,                         Andy
15   Grove,    the CEO of Intel,             likes      to ask,           In what year
16   will    children    spend more          time     in front of the
17   Internet     interacting        with      their      friends          and
18   learning     information        than they do watching                       TV?        And
19   it's fairly       clear    that that date              is less than a
20   decade    away.     And so it's a very                 rapid         change       in
21   behavior.        And the young          people       who are used             to
22   using    these    tools will move             into the economy                and
23   show us how to use them even better                           than we are
24   already.
25                    This   Internet        is really            quite




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
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 1   something.        You can hardly            pick      up a magazine
2    without    seeing       the latest        idea of how people                   are
 3   using    it.     I used    to have        a job where            I could           go
4    home    and read magazines,             and it was really                    separate
 5   from my job, but now there's                    almost        no magazine               I
 6   can pick       up without      somebody         talking         about        the
 7   latest    benefit       or the latest           problem         that are
 8   taking    place    with    all this         change        towards        more       and
 9   more    connectivity.
10                    The Internet          is quite         an amazing            thing.
11   The level       of investment,           the new companies,                   the new
12   ideas,    even    for the computer              industry,             this    is kind
13   of amazing.        Today,      computers          are in 40 percent                     of
14   all U.S.       homes.     And so far, half                of those           are --
15   half of those       homes      with      computers            are connected                 to
16   the Internet.           So it's only          20 percent              of U.S.
17   households       today    that are living               an Internet
18   life-style.        What     I mean       by that        is that they
19   exchange       electronic      mail with          their        friends        and
20   relatives.        Their     kids who are off at school,                            they
21   are able       to stay    in touch with             a lot better              through
22   electronic       mail.
23                    If they want          to do something                 major       like
24   buy a car, they can go to the Internet                                and find out
25   exactly    what    their      dealer       paid     for that car,              and so




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                             55




 1   they are a little          smarter        when     they go in to do
 2   that negotiation.            Information           of all types              are out
 3   there,    and they just take it for granted                            that they
 4   can go and get that.
 5                 In business,            we're      much        further     along.
 6   In business       today,     the majority            of desk workers
 7   have personal       computers         that are connected                 up to
 8   the Internet       so there we see electronic                         mail,       and
 9   the use of electronic             connections            as being        very,
10   very    strong.
11                 In business,            the companies              that do this
12   best will be the ones that get ahead                           because
13   they'll    be able to call up all the information
14   about a customer         very easily           and get everybody                   who
15   relates    to that customer             working        together,         whether
16   or not they're       in the same location.                       They'll          be
17   able to see what a competitor                    does and draw
18   together    the reaction          very      rapidly.
19                 One interesting               experience           I had was I
20   asked    for every paper          form inside            Microsoft           be
21   brought    to me so I could             figure       out how we were
22   going    to get rid of paper              forms,       and I was stunned
23   at the amount       of bureaucracy             that had grown                up in
24   my company.        There     are over a thousand                     printed
25   forms    for changing        your payroll            options,          for




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              56




 1   signing    up for different                 things.          It was wild.               And
 2   in about     six months'            time,      we were           able to get rid
 3   of all but six of those                   forms.         And we did that by
 4   simply    putting        up electronic             equivalents.                So now
 5   if you want       to see what your                 retirement             plan    status
 6   is and ask for a change,                    you can simply                do that
 7   very    easily    with       the computer            screen.
 8                    Even      things       like our United                  Way
 9   campaign,       we do electronically                   where       we mail        out a
10   simple    mail message,             if you want            to give your            fair
11   share,    you just click              and we'll          never       send you
12   another    message,          you're       done.        If you're           still
13   thinking     about       it, we send you messages                         fairly
14   constantly       to try and get you to think                             about    it.
15   And    if you want         to learn         about      the agencies              and
16   what    they do and be very                 intelligent            about       how you
17   designate       your     giving,        it's all there,                  the
18   background       of what         they do, what             their         budget    is,
19   what    the opportunities               to volunteer              are,     and so
20   we've    been    able      to use that            to make         it not only
21   faster,    but get people               more      involved         and raise           more
22   money    as well.
23                    Of those          thousand         forms,        it turned        out
24   there    were    six we couldn't                get rid of and that's
25   because     the government,               federal        government            in this




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              57




 1   case,    still    requires       us to submit             those        things       on
 2   paper,    and I think        in the years             ahead,          one of the
 3   great    advances     will be taking              all the paperwork                     in
 4   government       and allowing          it to be replaced                 by
 5   electronic       forms which         are so much              easier     and more
 6   efficient.
 7                    So thinking         about       government,            what    can
 8   be done here       for efficiency?                Certainly            filing
 9   taxes    and insurance         forms,          applying        for permits,
10   applying     for business          licenses,          all of these             things
11   can be done very          easily.          I    think     back        to when       I

12   was very young,         one of the -- actually                        the only          job
13   I ever    had besides        Microsoft           was being            a page    both
14   for the state       government           and for the federal
15   government,       and what       I used         to do was         just carry
16   messages     around     from one place              to another.               And       I
17   think    those    jobs may have            to change           in the future.
18   Because    a lot of that can be done electronically.
19                    Now, when we think               about        government,
20   it's also drawing           the citizens            in.        For example,
21   making    it easy to see the crime                    statistics          for your
22   area,    renewing     your      license         tags or changing               your
23   address    for your drivers              license        or finding            out
24   about    recycling      options,         where      you go and what                 goes
25   on there     or seeing        property          sales,        property        values




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          58




 1   on your    street       so you can understand                   are your        real
2    estate    taxes    fair, or looking               at how your            school       is
 3   doing    in terms       of whatever         testing           is going       on.
4                    When you make all of this electronic,
 5   you eliminate       waiting        in line, you eliminate
 6   holding    on the phone          and you just make                    things    so
 7   much more accessible             because        you can type in simple
 8   descriptions       and be directed              to where          that
 9   information       is.
10                   One of the new ventures                       Microsoft        has is
11   a joint venture          with NBC where             we put news up on
12   the Internet.           You can always            dial        in and see what
13   the latest      developments           are, and one of the things
14   we've    done   is we've       made      it easy to enter                your       zip
15   code,    so whenever       you see a new story,                       we will
16   append    to the story         the things           that are relevant                 in
17   your    area.
18                   So, for example,              if we have a story
19   about    dangerous       roads     and how roads               aren't        being
20   maintained,       we'll     show in your area what                      roads       are
21   in that state       is.      Or if there's              any discussion
22   about    legislation,        we'll       show     -- along            with    the
23   story,    we'll    show how your representatives                             voted    on
24   that issue and even let you click                         in and see
25   whatever    testimony         or comments           your       representatives




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                       59




 1   have made and then,            of course,           it's very easy to do
 2   one more    click     and send an electronic                     mail message
 3   to your representative               and say that you agree,                 and
 4   think    they're    doing      a great        job or provide            whatever
 5   additional       advice    you'd       like to offer.
 6                    So this technology               can draw people           in.
 7   It can take topics           like budgets             that are very
 8   complex    and hard to cover               in simply          a front page
 9   article    and let people            dive in and see as much as
10   they happen       to be interested              in.
11                    So it takes         all this information                that's
12   public    and makes       it truly public,                the debates,       the
13   speeches,    any type of investigation                        of policies,
14   it's all there,         and hopefully,              this will         strengthen
15   democracy    because       people        will know a lot more.
16                    I decided       to give a few examples                  of how
17   states    are using       the Internet.               It was fascinating
18   to go to all the different                   sites      and see the
19   innovative       work that's         going      on.       I'd have to say
20   that we're       just at the very beginning                      of being    able
21   to take advantage           of this.          There       is an incredible
22   amount    more    that can be done here.
23                    One example,          from my own state,               is how
24   there's    a requirement           for many         jobs to check
25   somebody's       background        to see if they have a




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                            60




 1   criminal    history,       and today          that's          very     paperwork
 2   intensive.        In fact,       it's often           on the critical
 3   path    in terms    of getting           somebody         into a job.
4                     Because     it's paper-based,                   the number           of
 5   people    who have       to see the information                        is very
 6   large which,       of course,          creates        a security              and a
 7   privacy    concern.        But now,         as of August,                there's       a
 8   setup    being    put together           that allows             all this        to be
 9   done    on the Internet.             So somebody              has a very
10   secure    password,       they can go in and immediately                              get
11   the results.        Here     we see one of the computer
12   screens    that you get if you're                   using        that     system.
13   So it's    faster,       cheaper,        and it really                 gets    the job
14   done.     People    who     say,     "Well,       gees,        I don't         want    to
15   go through       that    effort.         It's a lot of trouble
16   now. "    That will       not be an excuse                because         it
17   becomes    so straightforward.
18                    Another      example        that     I thought           was very
19   instructive       is what's        being      done      in Wisconsin,
20   exchanging       electronic        mail     with      constituents,              the
21   legislators       are all set up to do that.                            Exchanging
22   mail with     each other         on very        easy basis,              even    their
23   calendars     are now available                so they can work
24   together     to schedule         meetings,          committee            meetings
25   or whatever       else    they want          to do, and all the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada    89101
                                                                                       61




 1   legislation,       what's     going      on, the committee
 2   hearings,      is all there         to be able to look up.
 3                   One thing       that      I think will drive               a lot
 4   of efficiency       is what they call their Vendornet,
 5   where    they put out all the information                            out there
 6   about what      things     the State wants              people         to bid on,
 7   and so here's       the page on the Internet                         that does
 8   that.     They have a vendor              information           center     that
 9   tells you a lot about             how this works               and what's
10   going    on.    You can get -- all the common                          questions
11   can be answered         here and so how you do business
12   with    the State,      who's     buying       what,         the general
13   procedure      questions.         These      are,      I assume,         the most
14   common    questions.        One of them I was kind of
15   surprised      to see here        is it says,            "What if I
16   haven't    paid my taxes?"              It says,         "Well, they'll
17   just deduct      it from what           they're        supposed         to pay."
18   That seems      to make      sense.        And all the information
19   that you get in print             is right         here.
20                   So if I go ahead             and sign up for this,
21   then    I'll find out             then      I'll be a vendor,              a
22   listed    vendor    that can be notified                     of all the
23   different      things    that are going              on.       And what        this
24   means    is that the State            collects         a registration            fee
25   and so this Vendornet             can be totally               funded,     but




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           62




 1   also    I get informed         whenever         there's         a situation
 2   that might       be interesting           to me.         And so any time                  I
 3   can go in, let's          say my bills            contractors,               here
4    I've got my password,              I can go in and look for
 5   different    kinds      of bids.          Here      let's       say I want           to
 6   provide    computers,        and so when            I enter           that    it goes
 7   out and finds all the State                   bids      related
 8   computers.        Looks     like somebody             still updating                the
 9   main    frame,    that's     too bad,         those       are the big
10   computers.
11                    And here we see some personal                          computers,
12   and there's       a particular           bid.       And the nice              thing
13   about    this is I can see the full description                                of
14   what    they want here,          and I even           see an electronic
15   mail    address    so if I have a question                      about        could    I
16   substitute       something       in, what would               you think         about
17   this,    I just click         there      and can type             in a message
18   and somebody       can fully process                that.         So this       is an
19   example    where    the State's            going      to get more people
20   bidding,    vendors       are going          to find it much                 easier
21   to work with       the State,          and it's just overall                    a
22   huge win for everybody               that's       involved            in the
23   thing.
24                    Another      example        that     I found out there
25   that    I thought     was interesting               are some of the




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                    63




 1   things     that    the State            of Florida          is doing.
 2   Information        for citizens,                employment          opportunities,
 3   licensing,        really        a very       large      site       that       they    have
 4   been    able     to put       together.            Let's      just        real      quickly
 5   go back     and    look       at that.           And    what       I'm doing          here
 6   is connecting           out     to the       Internet,            and     so here         we
 7   see    the home     page,         and we can           see there's             a lot of
 8   government        information             and    things       that        citizens
 9   might     be interested             in.
10                     Here      at the        top    level,       you       can    see a
11   page    that     has all        the phone          numbers         if you          want    to
12   call    somebody,         you     can     look     that     up easily,              things
13   that    like     government           services.           If I scroll               down
14   here    I can     see job vacancies.                    Now       at this          point,
15   these     are    just     jobs      in the government                   itself.           But
16   over    time     these      job     sites,       I think,          will       be
17   expanded        to include          all    the     jobs     in the         State      to
18   make    it easy     for people             to get       matched,           and      so we
19   have    a very     rich       page      here     that     lets      me pick          what
20   kind    of occupation             I'm looking           for,       what       kind    of
21   minimum     salary        and go through               and understand                all
22   the different           job opportunities                 there.
23                     Another         thing      I can      look       at is, you
24   know,     what's    been        put     together        for children.                 A lot
25   of material        here       as well        about      child       support          and




                 LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          64




 1   pages    that people        have been put together,
 2   education.        There's      even what          they call the Safety
 3   Center    where    they've       taken what would                have been
 4   printed    brochures        and made        them      interactive         so
 5   parents    can sit with          their      kids and step through
 6   things,    like here we see what do you do after                               an
 7   accident,       describes      that.        What      do you do about
 8   strange    animals?         What     about      safety        when     I use my
 9   bike?     And    it's kind of fun to step through                         these
10   things    and learn       the information               in an interactive
11   way.
12                    Just one more thing                on this site that                I
13   thought    was interesting             is what's          put up there          for
14   licensing       and consumer         protection.              Under
15   licensing,       you can go in and find out about                         the
16   state of your driver's               license.           You can even
17   change    your    location       electronically,                and all the
18   brochures,       the handbooks           have been put up on-line.
19   In fact, the Spanish             handbook         is there,           all that
20   different       information        is easily          accessible.
21                    And   finally,        let's      look at consumer
22   protection.        Now, one of the things                     they've     got up
23   here    is all of the restaurants                   that didn't          pass
24   their    food inspection,            things       that people           might       be
25   very    interested      in.       In fact,        restaurants           might




               LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              65




 1   care a lot more            about passing             when        they know     that
 2   this    is all there.
 3                    Here we've           got a site that's                   been put up
 4   by the insurance             commissioner,             and we can see the
 5   Automobile       Insurance          Guide      is here.            I can actually
 6   bring    that material            down onto my computer                     and so I
 7   could    either    read        it off the computer                  screen     or
 8   print    it out or mail             it, forward            it to a friend               I
 9   know who might           be interested             in that.              And so great
10   accessibility          to information              that      is already
11   there.
12                    Now,      there      are some difficulties                   in
13   making    all this happen.                  I painted            a very positive
14   picture    and I am a very                optimistic             about     this.        But
15   let's    talk through            some of the things                 that hold           it
16   back.     The personal            computer,          like        I've said,        is
17   improving       at an incredible                rate,      and every         desk       job
18   will    involve    a computer             connected          up to the
19   Internet       using     electronic           mail     and productivity
20   tools.     Now these machines                   have been very              difficult
21   to manage,       and so the industry                   has made           it a top
22   priority       to make       it very        simple       to use the machine,
23   to make    them    less confusing                 and have         a lot less
24   support    staff       that have          to come        to that machine                and
25   make    sure    it's up-to-date.                  In fact,         the industry




                LAURIE WEBB & ASSOCIATES                          (702) 386-9322
                            517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              66




 1   has made       a lot of breakthroughs                 that will bring
 2   what's    called    the cost of ownership                      of the machine
 3   down rather       dramatically.
 4                    Another     big issue          is the speed             of the
 5   networks       that connect        all of these               things
 6   together.        Under    the new telecommunications                          regime,
 7   states    are in the primary              position            of deciding           what
 8   will    the rates       rates be, what will                   the incentives
 9   be for building          out high speed networks,                       and some
10   states    have actually          taken      a leadership               role    in
11   making    sure their        facilities          are connected             with
12   these great       networks.          This will be very                  critical
13   because    the quality         of the network                 will     really       be a
14   major    element    in determining              how competitive                that
15   state    is.     I'd say after           quality        of education,               it
16   might    be the next thing             that a business                would     look
17   at in deciding          to go to a particular                   state.
18                    Laws about        electronic           commerce         are very
19   important.        Enabling       people        to use digital
20   signatures,       getting      rid of the need to use
21   paperwork.        I followed         closely        the deliberations
22   you've    had on the taxation                issue,       and I think           the
23   decision       you've    come to is a very good decision,
24   that while       making     sure that the states                      continue       to
25   control    taxation       policies,          that there           aren't       new




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          67




 1   taxes    put onto the Internet                as we learn              how this
 2   should    be done and people               work     together           to make
 3   sure that       it's done       in a consistent                fashion,
 4   because    the Internet,           being      a global          network,        makes
 5   it very    tough    if there's           different            approaches        that
 6   are being       taken.
 7                    And the Internet              is in its infancy.
 8   There's    a lot we're          learning        about         it and it's
 9   important       that we allow          the innovation                 to flourish
10   there.
11                    Perhaps      the most        difficult           issue       of all
12   about    this    is tnat the computers                  become         so valuable
13   and so helpful          and such an important                   part     of an
14   education       and a great        job, that we wish                   that
15   immediately       we could       bring       these      benefits         to
16   everyone.        And so a lot of people                   speak        out about
17   the dangers       of have versus             have not, who's              going      to
18   have    these    computers       and who's          not.        Is it going          to
19   increase    the differences              between        homes         that can
20   afford    this and school            districts          that can afford              it
21   and leave       other    people      behind?
22                    And I think         there       is a real danger
23   there.     And this is a big, big issue                         for society          in
24   terms    of deciding        how much         to devote          in the way of
25   resources       to schools       and libraries.                 I think        the




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          68




 1   strongest    analogy       here     is reading           and literacy.               A
 2   long time ago, we decided                 that having            libraries          was
 3   a very basic       thing     and every         community             should    have
 4   a library    and schools          should       be there          to teach
 5   people    literacy     and all the basic                 skills        that can
 6   create    equal    opportunity.             Well,      now computers            are
 7   becoming    part of that,           and so there             are lots of
 8   innovative    experiments           going      on.
 9                  I've gotten          involved         both on school             side
10   and on the library           side because            I think          libraries
11   have a special       role to play             since      its people           of all
12   ages should       be able to come in and sit down and use
13   a personal    computer.           And it's been wonderful                      to
14   see how librarians           have responded              to this new
15   challenge.        It brings       more people            into their
16   libraries,     forces      them to learn new things                      but
17   where    this has been done,              they've        been        incredibly
18   receptive.
19                 Now,     to close         this information                gap is
20   going    to require      lots of cooperation                   between        the
21   private    and public        sector,        and it's going              to take a
22   lot of experimentation,               and it may take most                    of the
23   next decade       to get this done.                But I think           it is a
24   very,    very high priority             for us to all put a lot of
25   thinking     into it.




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         69




 1                  So I want to end my comments                          on a very
 2   upbeat    note.     The Information              Age     is just
 3   beginning.        And   I think       a lot of positive                things
 4   going    on in the economy            reflect        the efficiencies
 5   that these new technologies                  provide.           There       are
 6   many new jobs being           created        in these          areas,       and
 7   they are jobs that are very attractive.                               The
 8   opportunity       for efficiencies             in government,               just
 9   like in business,          is pretty         amazing          and you're
10   going    to see these        technologies            constantly
11   improving.
12                  Sometime        in the next           10 to 20 years,
13   you'll    actually      be able to talk to your                      computer
14   and have     it understand          what you're              saying    so it
15   won't    just be the keyboard               and the mouse.              And the
16   wealth    of information          that will be out there,                     the
17   ability    not only to have text pages                        with    images
18   like I showed       you here,         but for everybody                to get
19   video    there as well,         just opens           up new things            and
20   so it's a whole         new world         and I know,            I speak      for
21   our entire     industry,        saying        that we look forward                  to
22   working    with you to making               sure this is a big
23   benefit    in state government.                  Thank        you.
24                  (Applause.)
25                  GOVERNOR       MILLER:          Thank         you, very much




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 1   for that     fascinating         information,            and we'll        take       a
 2   few questions       now.       Mr. Gates          is on a tight           time
 3   schedule    as you might           imagine,         but he's          agreed    to
 4   take    a couple.       Governor         Engler       and then Governor
 5   Graves.
 6                  GOVERNOR        ENGLER:          I've got a real               simple
 7   question.      I'm real        impressed          at taking           a thousand
 8   forms    in six months         down      to six.          I'm just curious,
 9   grounds    keepers,       the maintenance               folks,        those    who
10   wouldn't    normally       be using         the computer,              how did
11   you get them       transitioned           over?         Does Microsoft
12   have    a mandatory       training        program         for anybody,
13   whoever    no matter       what      they do for the corporation,
14   they have     to get certain             skills       and do you set up
15   stations,     because       obviously,          with      56,000       employees
16   in state     government,         we have        an awful         lot of them
17   who don't     -- who are               don't      have        a computer       with
18   the kind     of job they do for us and I'm just
19   curious.
20                  MR. GATES:            That's       a very        good
21   question.      What's       done     for employees              who are not
22   desk    -- don't    have desk-related                 jobs      is we take       a
23   personal     computer       and set it up so it's very
24   simple.      It's got a touch              screen       so you're        hardly
25   using     the keyboard        at all.         And when          they put their




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 1   employee    badge       into the slot             in that         computer,         it
 2   immediately       knows who they are and so it lets them
 3   look at the records              that they care                 about,    where      do
 4   they    stand    in terms        of their vacation                 or their
 5   payroll    information.              When     anybody           starts    a job at
 6   Microsoft,       the first         thing we teach                them    is
 7   electronic       mail,      and one thing             about       electronic
 8   mail    is that you only get the benefit                           of it if you
 9   get a vast       -- a very         high percentage                of people
10   connected       up.
11                    If you want           to send mail,              and you
12   realize    some of the people                 you want           to communicate
13   with    aren't    on electronic             mail,       then      there's      no
14   efficiency       at all.         And     if you do start                with people
15   who have     desk     jobs,      that,       you know,           takes    care of a
16   very,    very    high percentage              of this.            But eventually
17   you want     to have those             kiosks       easy        to use, ways         to
18   let everybody         come on and connect                   up to the
19   system.
20                    GOVERNOR        GRAVES:          Bill,         I think       all of
21   us fully     agree      with      the notion          of getting          paper      out
22   of government.            Having       kind of come up through                      the
23   ranks    of the bureaucracy,                 how well           do you think         the
24   American     legal      system       is keeping           up with        the very
25   unique     challenges         that the paperless                  system




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 1   creates?        I mean,      we can create              documents          and do
 2   things    now with technology                 that              how do you know
 3   what's    real and what's              not real?
 4                   MR.     GATES:         Well,      even      in the paper
 5   world,    the opportunity              for false documents                  is
 6   there,    and it's surprising                 how well           the system
 7   works    when    fabricating           pieces       of paper            is actually
 8   fairly    easy.
 9                    In the electronic                world,         with     digital
10   signatures,       if the system              is administered               properly,
11   it is far more difficult                   to create            fraudulent,
12   counterfeit       paperwork          than it is in the paper                     world
13   itself.     NOw,      states       are passing            laws relating            to
14   digital    signatures.             There's        good progress             there.
15   One political         issue      that comes           up on this is this
16   encryption,       the very powerful                 encryption            technology
17   is how you protect              information           and make           sure it
18   hasn't    been tampered            with,       and there's              a little    bit
19   of a political          issue      at the federal                level     about
20   allowing    citizens          to use very           strong        encryption        to
21   protect    these documents.
22                    I'd say that the United                        States     is
23   actually    not the leader               in this.           Some governments
24   outside    the United           States       like Singapore,               New
25   Zealand,    Sweden,         Denmark        have moved            a lot faster           to




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 1   make    it possible      to take their             legal       systems,        for
 2   example,    and have       that be done on-line                      so you can
 3   see court    cases     and the filings               and what's          going       on
 4   electronically,        and it will            certainly          come, but
 5   there's    still    an unbelievable              amount        of paperwork
 6   that our system        requires.
 7                 GOVERNOR        MILLER:          As you can imagine
 8   everyone    wanted     to ask questions                so I'll try to
 9   limit    it to the four that have                  already           indicated       so
10   we can get you on your              other      businesses             and that
11   would   be Governor        Gerringer,          Governor         Voinovich,
12   Governor    Locke,     and Governor            Thompson.
13                 GOVERNOR        GERRINGER:             Thank      you,     Bill,
14   for creating       the opportunity             that      the rest of us
15   have been    able to exploit,               in fact,         through
16   discovery    enhance       our own opportunities.                       As I was
17   watching    your    browsing        through        the states           home
18   pages   and services         provided,          it reminded            me of when
19   we started    two years         ago on the same effort,                    how
20   few there    were out there             and how many             have    just
21   exploded    recently.          It's a phenomenon.                     I believe       I
22   read the other       way that there              are 500 new web sites
23   per day that are placed               on the Internet.
24                 One thing         that we've           done      is, to add to
25   what you've    said,       is we've         added      those who are most




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 1   notorious       in being    behind        in child           support.         We've
 2   added    the Deadbeat        Dads,      ten most         notorious
 3   deadbeat    dads on our web page.                    It's really
 4   enhanced    payments.
 5                   A couple      of questions,              they        are rather
 6   diverse     so I'll ask them both                and you can respond
 7   however    you wish.         First      has to do with                quality
 8   control    and remaining          current.           Now,      you talked
 9   about    authentication.            Anything         that a government
10   entity    places    on it's web page               or provides           through
11   availability       on the Internet             has to have             that    air
12   of authenticity        and needs          to be maintained               for
13   currency,       and it's a little            more      difficult
14   electronically,        although         it shouldn't             be, about       it
15   seems    to be a little         more      difficult           to maintain
16   that    so that    the public         is reassured             that what        that
17   they're    getting     is the real thing.                     So I'd like
18   your    comments    about      quality        control         and
19   authenticity.
20                    And then      in a completely                different        area,
21   entertainment       and sports          seem to be the driver                   for
22   much    of the development            of technology.                  That's
23   where    the real dollars           are when         it comes          to making
24   government       or education         pay its own way.                  It almost
25   never    can.     You have       to have        that piggybacking,               if




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 1   you    will.      If it's        not being          done     through
 2   entertainment           and     sports,        it doesn't           seem     to have
 3   the    access     into       the community            and yet        you     need       that
 4   for other        reasons.           I wonder        what     you     might        see as
 5   driving       that     in the       future.
 6                     MR.     GATES:         Well,      in terms         of making
 7   this    pervasive,           there's       no doubt         that     people        are
 8   going     to be moving           to using         computers          more     and
 9   getting       up on the         Internet        primarily           because        it's
10   fun and because              they    get     to stay        in touch         with
11   friends.         It will        also     let them         deal      with     their
12   bank,     pay    their       bills,      pay    their       taxes         in a better
13   way,    and     so government            is simply          taking         advantage
14   of the     fact      that     there      will     be these          mainstream
15   applications.             Nobody        is going        to buy       a computer
16   just    to interact,            at least         at the       citizen        level,       to
17   interact        with    these       pages.
18                     There's         some     wonderful          stuff        going       on by
19   the    entertainment            companies.            The     ability        to get
20   in-depth        information          about       sports       figures.            One of
21   the most        popular       sites      on the       Internet            is the ESPN
22   Sports     Zone      site.       Another         set of sites              that    are
23   very    popular        are    the news         sites,       CNN,     MSNBC,        a
24   number     that      are up there            with     that        information.
25                     Anybody         who    has     investments              loves    the




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 1   Internet    because    you get these              stock      tickers     and
 2   you can be notified          whenever         there's         interesting
 3   information     that's      out there.           And pretty           soon,
 4   we'll   have a bill payment             thing      where       you actually
 5   save money    by paying        your bills           electronically
 6   because    there's    no paperwork.               It's easy,          that will

 7   be straightforward          as well.
 8                  I'm a little          disappointed             in how slowly
 9   tax payments     are being         allowed        out on the
10   Internet.      In terms      of authenticity,                 when you go to
11   an address,     and each state            has been           assigned    an
12   address,    you know that it's coming                       from the state
13   government     and so there's           no doubt            on the part of
14   the citizen     they are interacting                  with        the State.
15                  The most difficult               thing        is
16   authenticating       who is at the other                    end, who is the
17   citizen,     is it really        the person           who should        be able
18   to get at that information.                   And a lot of
19   governments,     other      than the United                 States,    will
20   actually     issue what's        called       a Smart         Card,    a high
21   tech    ID card to all their             citizens,           and so if you
22   want to get your medical               payments         or your Social
23   Security     payments,      you'll       use that Smart              Card.
24                  In the United           States,        it's unlikely           that
25   the government       will     step into that role,                   so it's




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 1   more    likely    that we'll         piggyback         what      the banks,
 2   the credit       card companies           will      do or perhaps
 3   piggyback       some things        like driver's               licenses        to get
 4   people    unique    ID's that they don't                      share with           other
 5   people.     But once you get public                     kiosks         out there
 6   so that anybody          can browse         the information,                  then
 7   the next    thing,       the next        question         is what        do you do
 8   with    the information          only      a few people               should       have
 9   access    to.     And the technology                is going           to make
10   that very       easy.     The cost of the Smart                       Card and the
11   fact that every          personal        computer        will         have    the
12   Smart    Card    slot should         make     that      issue go away.
13                    GOVERNOR      MILLER:          Governor         Voinovich.
14                    GOVERNOR      VOINOVICH:             Bill,      I was writing
15   down while       you were      speaking         and obviously                you
16   access    something       to determine            what        states     were
17   doing    with    technology.           Is there         an organization               or
18   a service       that you know of that really                          keeps    track,
19   a comprehensive          list of how states                   are using
20   technology       that we could           reference?
21                    MR. GATES:          Well,      we, as a commercial
22   organization,       track      which       states       are doing
23   interesting       things      on the Internet.                  And you know,
24   I understand       there's       a special          conference           that you
25   guys have       talked    about      doing      on the year             2000




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 1   issue.     I'd also say as an adjunct                         to that as a
 2   separate    thing,       it would       be interesting                 to have
 3   states    get together         and look at who's                  doing       what on
 4   the Internet.           You know,       what      are the leadership
 5   activities,       what are some of the problems,                          and
 6   Microsoft       would    love to sponsor              something          like that
 7   and get together          with other          industry          people        because
 8   I don't    think    there's        another        dialogue            about    this.
 9   And one thing we would               bring      to a meeting             like that
10   is some of the things              being      done outside              the United
11   States,    because       as I say in certain                   areas,     a little
12   bit to our surprise,             the United           States          is not out
13   in the front of what             could be done.
14                    GOVERNOR      VOINOVICH:             It sounds          like a
15   good    idea.     We have a center              on Best         Practices        and
16   we're    trying    to make       it as relevant                as we can to
17   the problems       that we have now.                  Perhaps          we could
18   work with you to put something                      like that together
19   in the next       six months         to a year.
20                    MR. GATES:          Great.
21                    GOVERNOR      MILLER:          That's         my job in 45
22   minutes    when    I turn this one over to you, George,
23   so I got the message             already.           Thanks.            I know what
24   my first    thing       to do is.          Governor           Locke.
25                    GOVERNOR       LOCKE:         Thank      you, very much,




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 1   Bill,     for addressing                us this       morning         given         your
 2   very,    very       busy      schedule.           When      I attended              your
 3   Microsoft        CEO Summit,             you    talked         a little         bit       about
 4   the Nervous           System       as it applies               for managers               and
 5   that    was     in a corporate               setting,          but     for so many
 6   states       with     department            heads     and      top     level        managers
 7   who    were     trying        to understand              a specific            statistic
 8   or what       the phenomenon                means,       you    were         talking
 9   about     the use         of the Nervous              System         to really            get
10   at production             levels        and what's          the      root      cause
11   behind       that.        Could      you     share       that       even      though       you
12   don't    have       the     technological             capabilities,                 and    tell
13   us what       you     mean      by that        and how         that     can     really
14   help    people        manage       and get        to certain            problems.
15                       MR.     GATES:          Okay.        The    idea         is to think
16   through       all     the processes,               and how you               want
17   information           to flow.           Take      the     State       budget
18   process,        you    know,        could      you    get      on-line         all     that
19   information           about       the various            proposals            and    how
20   those     work,       and     instead        of people          not     knowing
21   what's       going     or not knowing                how    it's       coordinated,
22   they     just    go to a state               government             Intranet         site,
23   all    the    employees           who    are     involved           in that
24   budgeting,          and     they      can    see a very             rich      set of
25   information           that      they     can dive          into      at detail




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 1   level.     They    can model         the different              alternatives
 2   about    what's    going      to happen,          and so you can take
 3   that budgeting        process        and streamline               it pretty
 4   dramatically.
 5                 Now,      that's       just one process.                   State
 6   government     has so much           information              it's dealing
 7   with.     You know,       state      governments              have more
 8   databases     that even very             large      corporations           do, and
 9   everyone      of these        things,        everyone           of these
10   databases,    you have         a process          about        how often        does
11   the information         change,        what     kind of reports                do you
12   want    on those    information.              As soon as you get the
13   employees    using      electronic          mail,       which         I consider
14   the first     step,     if you're          not there           you're     not
15   really    on first base,           but as soon as you get that,
16   you'd    be surprised        how you'll           get bottoms            up from
17   the organization,           lots of ideas             about      how to use
18   these    networks     and to put           information           on-line        in
19   very    smart ways.
20                  And so it won't               have     to be a tops down
21   process,     but it has to get started                        by getting        the
22   infrastructure        in there         to do electronic                 mail    and
23   having    a few pilots          that     really       open peoples'             eyes
24   to what     it's like to have              things       on-line.          Quick
25   decisionmaking,         less paperwork,               those       are the




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 1   symptoms    of what you get out of this, but it really
 2   requires    thinking        through        all the information,                     and
 3   I think people        would      be amazed          at how putting              these
 4   systems    together       is quite         inexpensive            because       the
 5   building    blocks,       the network           and the personal
 6   computers,    you're        already        paying       for those.             Now,
 7   what we're    saying        is use them in a more profound
 8   way to change       the information               flow, which            I'm
 9   calling    the Nervous         System,        of how people              work on a
10   regular    basis.
11                 GOVERNOR         MILLER:          Governor          Thompson.
12                 GOVERNOR         THOMPSON:            Thank       you,
13   Mr. Chairman.         And I think            the Center           for Best
14   Practices    is an outstanding                organization,              and I
15   hope that you take it up and carryon                              with    it, and
16   I think    it's a wonderful              idea that you and George
17   have come up.
18                 Bill,       I really         want to thank               you first
19   for being    here,      secondly         for proudly            mentioning
20   Wisconsin    and some of our innovation,                          but my
21   question,    I think,         is something            on the minds             of
22   most governors,         anyway       it is on mine.                   We are
23   investing    just a lot of money                  in the states.                We're
24   all trying    to do the right                thing.           I, for myself,
25   and the State       of Wisconsin             have put $500 million                    in




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 1   the next     two years        to hook up every                  school,        every
 2   library,     every     nursing        home,      every         university           and
 3   high    school,    grade      school        in the State               of
 4   Wisconsin,     put a new,           the newest           technology            and
 5   we're    investing       a half       a billion          dollars.
 6                  My concern,            however,         is that you are so
 7   bright    and are moving            so damn        fast        in changing
 8   things,    what    happens,         what      is the next              two years?
 9   The problem       we have       as states          is we invest               the
10   money    and then the technology                   changes        so rapidly
11   that by the time we've                invested         $100-,          $200-,
12   $300-,    $400-,     $500 million,             the new technology                    has
13   bypassed     us by generations.                  In a year             or two, and
14   even though       I think        it's the right                thing        to do in
15   Wisconsin,     I'm always,            in the back              of my mind,
16   worried    that you're          going       to come up with                  a smaller
17   computer,     something         whole       different           that's        going       to
18   make    that $500 million             obsolete         and everybody                in
19   Wisconsin     going      to say,        "Why did you do it?                     Why
20   didn't    you wait       for Gates          to come up with                  this new
21   technology?"         So I'm asking             you,      what's         there?
22                  MR. GATES:             Okay.        I can assure               you that
23   there's    no breakthrough              where      in one year,               all of a
24   sudden    things     will      be dramatically                 better.         It's
25   very    evolutionary.            Every      year     the machines              will




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 1   get about    40 percent         faster       and the software               will
 2   get about    40 percent         better.          What        typically      goes
 3   on in the commercial            world      is that people              pick
 4   either    a three-     or a four-year              cycle,       and they
 5   budget    to upgrade       the PCs on that three-                    or
 6   four-year    cycle.
 7                 Now, the most expensive                        investments,
 8   building    out the network             that you talked               about,
 9   that will not become            obsolete         as long as when you
10   run new wires,       you run optic             fiber,         that same fiber
11   you put out today,          the new equipment                  will be able
12   to run more and more data through                        that,       so you
13   won't    have to go back and do what's                        very expensive
14   which    is digging      those ditches             and putting            that
15   fiber out there.           So any new wiring                  that is put in,
16   people    will put in fiber and that is a future-proof
17   investment,       the computers           themselves
18                 GOVERNOR        THOMPSON:            Can I take that to
19   the bank?
20                 MR. GATES:            Sure.        The most expensive
21   part of this,       I hate to say though,                     are more of the
22   human    costs,    training       people       and getting            the
23   systems,    moving     the systems           where       they have been
24   into the new approach.                And there,             you know,      the
25   benefit    of the training,             as long as you retain                    the




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 1   people    and get them enthused                    about         using      it, where
 2   it just becomes            part     of their         everyday             job
 3   experience,       that's        a one-time           expense          that
 4   shouldn't       have     to repeat          itself       again        and again,
 5   particularly       as the machines                 get easier              to work
 6   with.     And    so it's mostly              the hardware                 capital       that
 7   you have    to think          of as an ongoing                   expense.
 8                    Designing          one of these            digital             Internets
 9   that    I talked       about      where      you get rid of paperwork,
10   you get everybody              in state        government             connected          up,
11   you let citizens             see all the things                   going         on, the
12   equipment       that1s       there      today      does      that very            well.
13   And so you could             buy today's           equipment              and feel
14   very    confident        that     it's not going                 to wear         out,
15   that    it will    be capable.
16                    Now when         we do come along                  with        a machine
17   that you can talk to, which                       I'm optimistic                 enough
18   to believe       in less than ten years                      we will,            people
19   who have    that new machine                  will     be jealous               of the
20   people    who have         the machines            that you type                 to that
21   and so that's          when you get this                 three-           or four-year
22   replacement       cycle        which      is ideal.              When      you go out
23   to schools,       you see machines                 that      are six and seven
24   years    old,    and that's           a problem          because           all of the
25   new software        that's        being       developed           really         requires




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 1   machines    that are more            like three-              or four-years
 2   old.
 3                    GOVERNOR      ENGLER:          Today         schools     that are
 4   bonding    for ten years           -- I've even               see 15 years
 5   bonds    for technology,           and I'm very               alarmed     about
 6   what    they're    doing.        They      are committing               themselves
 7   to an awful       lot of debt          for junk.
 8                    MR. GATES:          If it's        for the computers
 9   themselves,       and it's not,            and they're           not able to
10   refresh    them at well under                five years,              that's   a
11   mistake.      If it's for the network,                        then you can
12   take a 15-year        cycle      and feel very                good     about    that.
13                    GOVERNOR      MILLER:          Let me ask you just
14   one last question           and it relates              to education.              In
15   my budget     this year,         the philosophical                    dialogue
16   that we had related            a difference             between         some who
17   thought    we should        put more         computers          in
18   laboratories       and send children                there       to learn        how
19   to use the computer.               My approach            was that we need
20   to put more       in classrooms            so that children               can use
21   them to learn.
22                    One project         we came upon              to try and
23   exemplify     that was an Internet                  progressive           novel,        I
24   wrote    the first chapter             of -- I'm calling                 it a
25   book,    maybe    others      that read          it won't,            but called




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 1   Envy    in the Desert.           We have now two versions
 2   during    that last school             year.        One written           by high
 3   school    students      in Reno,         progressively                different
 4   high    schools,    the other          written        by high          school
 5   students    here    in Las Vegas,             different          chapters.
 6   What ways,    number       one, do you agree                  that from an
 7   educational    vantage         point,       we should           be putting              our
 8   emphasis    on trying        to get them in the hands                         of
 9   children    all day long as opposed                     to having         them go
10   down the hall once a day to learn                         how to use it,
11   and how do we break            through        that message?               What
12   other    examples     or what message               would       you give us?
13                 MR.     GATES:         That's       a very good question
14   because    the nature        of computer            use in schools                 is
15   changing.      In the past,            people       thought           of it as a
16   machine    to give drills            or simply          teaching         somebody
17   to use the computer             itself       and that was all they
18   were trying     to do.         Now,      they're        thinking         of it in
19   a much more profound             way, which           is it's a learning
20   tool,    and whether        you're       studying         history        or
21   English    or science,          that the computer                 lets you get
22   out there     on the Internet,               find other           kids with             the
23   same interests,         tryout         some new things                 and so
24   that's    causing     the shift          that you talked                about,
25   away    from it being         laboratory          device        that you can




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 1   only go to in your           time,       how long you can be on it,
 2   to wanting       each student          to have        access          all day
 3   long.
 4                    The ultimate          here,      which        has been done
 5   in only    a few hundred           schools,         is called           the Lap
 6   Top Program       where     each student            has a lap top
 7   computer,       and it's amazing            because           they have a
 8   sense    of ownership.           They      can take           it home and work
 9   as long as they want.                It's their           computer        to take
10   care of, and the teacher                 and I'd assume                that
11   they're    all out there           trying       new things             and they
12   can come back       and see those             things          in the
13   classroom.
14                    Now, unfortunately               that        is a very
15   expensive       approach,      and so we're             going         to have   to
16   move    there    step by step, but that transition                            from
17   the laboratory        into the classroom                  in getting          that
18   ratio    to move towards           the ideal,           which         is this one
19   to one,    that's     absolutely           the right           track     to push
20   people    along.
21                    (Applause.)
22                    GOVERNOR      MILLER:          Thank         you, very much.
23   It's really       been very        informative,               and a little
24   glimpse    of the future           and even         some promises             as to
25   what    effect    the future         will     have      on us since




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 1   Governor     Thompson       put him on the line,                       so we
 2   appreciate     your      directness          and your           insight.            Thank
 3   you very     much    for being          here.
 4                  Now,     we have         some     important             business       to
 5   take    care of, and I'd like to have                          Governor        George
 6   Allen    of Virginia        come      forward.
 7                  Now the people              of America            bestow        on
 8   governors     unique      powers        and responsibilities                    that
 9   are essentially          reserved         for presidents                of
10   nations.      This     responsibility              binds        us together           in
11   a very    unique     personal         and bipartisan               way.
12   Governor     George      Allen      will be leaving                office       this
13   year,    but he will        not be leaving               our hearts            nor our
14   memories.      He has been            serving        with       distinction           as
15   a public     official        since      he took Thomas                 Jefferson's
16   seat    in the Virginia           legislature            in 1983.            He was
17   elected     to the U.S.         House       of Representatives                  in '91
18   and Governor        of Virginia           in '93.
19                  He has been            a national           leader        for
20   changing     welfare       to a new system               of job training
21   and opportunities,             for reforming             the state's
22   criminal     justice       system       and for all forms                    of public
23   education     through        higher       standards,            regular        testing
24   and results     for an administration,                         and as all of
25   you know,     he has been very                active       and informative




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 1   part    of the National           Governors'           Association,             so
 2   George    and Susan,        we wish you and your                       family
 3   well.     One of the reasons                I tried        to start        the Past
 4   Governors'     Association            at this meeting                  or at least
 5   revitalize     it is so that all be able                         to participate
 6   in a that     future       years      and I'll be able to
 7   participate       in that the year               after.          We have a
 8   small gift     for you.           Thank      you, very much.
 9                  GOVERNOR         ALLEN:         Thank      you,         Governor
10   Miller,    Bob,    for those very              kind      remarks.          And       I
11   was thinking       last night,            watching         all these
12   wonderful     shows and performers                   here       in Las Vegas,
13   Nevada,    how,    I don't        know,       ironic       or fitting           it is
14   that    22 years     ago, at this time                 I was      feeding
15   cattle    as a buckaroo           up in Northern                Nevada     near
16   Winnemucca,       and 22 years            ago while            doing     that    I had
17   no idea I'd ever get involved                      in politics,            much
18   less be a governor.               So it's quite                a change     from
19   pushing     cattle     up into the high                country          to being
20   here    in Las Vegas         and as a governor.
21                  I have very much                enjoyed          the opportunity
22   to serve     the people         of Virginia.               It's been        a
23   wonderful     opportunity           to work with you all,                   to
24   learn,    mostly     learn       from you all and what you're
25   doing    in facing       the challenges              and your           creative




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 1   innovative     ways of facing             opportunities                  or creating
 2   opportunities       for the people              of your            states.
 3                  We have discussed                issues.            We've     worked
 4   on strategy.        We've      crossed        swords,          but most of all
 5   I have enjoyed        the friendship              and the learning
 6   experience.
 7                  I would        ask you all to continue,
 8   continue    as governors           to understand               the importance
 9   of your    roles.       A governor,           I was just talking                   to
10   Tom Ridge     before      he headed         out, the governor                  of any
11   state has such a great               opportunity              to
12   constructively        impact       the lives          of the people               in
13   that state,     more than any other                   public          official,
14   whether    it's in education               or recruiting                 jobs to
15   your   state or improving              welfare,         transportation,
16   public    safety.       And    it is absolutely                    essential       that
17   you all stay on guard,               stay on guard                 to make     sure
18   that you keep those            responsibilities.                      Do not let
19   the rights     and the responsibilities                        and the
20   prerogatives     of your office                and the people               of your
21   states    be usurped        by any sweet            talking           or any
22   connivance     because        the future          of our republic                 and
23   the future     opportunities             and vitality               of
24   opportunities       for the people              of our states               are
25   dependent     on the ability             of governors               and the




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 1   people    of each state to chart your own course,                         each
 2   and everyone     has a different               sort of organization,
 3   but all have similar          goals,       but nevertheless             you
 4   achieve    them in the way that's                appropriate          for the
 5   owners    of your government,             the people          of each
 6   state.     So in closing,         I say to each and everyone
 7   of you, regardless         of party,         state or region,            I
 8   wish you all the very best                in your          future
 9   endeavors,    and I hope and pray                that our United
10   States    will continue       to be blessed                with people    of
11   your character,      of your decency               and your
12   outstanding    leadership.            Thank you all so very
13   much.
14                  (Applause.)
15                 GOVERNOR      MILLER:          Governor         Engler.
16                 GOVERNOR      ENGLER:          Mr. Chairman,            I hope
17   that Governor    Allen            I very much enjoyed
18   certainly    serving     with George           and certainly           taken
19   to heart his warning          to us, the on-guard                   and ever
20   vigilant,    and I hope that his public                      service    career
21   is merely    interrupted        as his terms of governor
22   comes to an end, and we would                  have a voice of
23   reason    in body,   say like a great                deliberative        body,
24   like the Unites      State Senate            speaking         up, so I
25   congratulate    you and wish you and the your                         family




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 1   nothing    but absolutely           terrific         things          in the
 2   future.
 3                    GOVERNOR     ALLEN:         Thank       you, very much.
 4                    GOVERNOR     MILLER:          Sentiment             I'm sure we
 5   all share.        Now,    I'd like to recognize                      Governor
 6   Shaheen    for some brief           remarks        concerning           robotics.
 7                    GOVERNOR     SHAHEEN:           Thank       you.       I asked
 8   for a couple       of minutes         to speak         to all of you this
 9   morning    because       we've    heard      a lot, and we've                 talked
10   a lot the last couple             of days about               the importance
11   of education       to each of our states                     and insuring
12   that we could       compete       in a global            economy,        but part
13   of that education          is getting          kids excited             about
14   science    and math and technology                   so they can do the
15   kind of things       that Bill Gates               talked       about.         And
16   we've    got something        going       in New Hampshire               that
17   actually    started       there     that I think provides
18   tremendous       opportunity        at no cost to all of the
19   states    throughout       the country.              It's a program
20   called    U.S.    First    and First          stands         for in
21   quotes,"For       Inspiration         and Recognition                 of Science
22   and Technology."           It was started              by an inventor            and
23   entrepreneur       named     Dean Kamen           (phonetic)           who,    like
24   Bill Gates,       never    completed          college,         but while        he
25   was a student       invented        a pump       that's        used     for




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 1   insulin    for diabetics           and has become               a self-made
 2   millionaire.        And in 1989, he came up with                          this
 3   idea that     in order       to get kids excited                      about
 4   science    and math,        we needed         to look at a sports
 5   model    because     kids are very            excited          about     sports,
 6   and if we could         duplicate          that     in some way, we
 7   could    get them     interested           in science           and math.
 8                  So he came up with                 this        idea for a
 9   robotics     competition         where       schools          team with
10   businesses     to produce          robots       who then         compete        in
11   regional     competitions          and nationally               around        the
12   country,     and the teams build                robots         in a game
13   that's    sort of like a cross                between         basketball            and
14   football     with    remote      control        robots         that do perform
15   like,    sort of like American                Gladiators              if you've
16   ever watched        that.
17                  The program           started        in '89, and this
18   year's    games     have attracted             7000 participants,                   155
19   teams    from 30 states.             The national              competition           was
20   held    in Epcott     Center       in Disney          World,          and it's the
21   largest    non-Disney        World       activity         held        at Disney
22   World.     I don't      know     if you went,             Governor        Chiles,
23   but it was quite          exciting.
24                  The winners           this year were               a school          from
25   Hammond,     Indiana,       which      paired       with       a business




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 1   called    Beatty   Machines         and a school              from Troy,
 2   Michigan,    that paired          with     a division            of General
 3   Motors.     The First       has attracted              businesses           like
 4   Proctor    and Gamble,        Honeywell,           their       CEO or their
 5   chairman    of their board            is the CEO of Xerox,                   and
 6   the goal    is to not just get kids excited                           about
 7   science    and math,      but to pair            them up with mentors
 8   who then can show them that they can actually                                 get a
 9   job working    in fields          of engineering               that can pay
10   them well.
11                 I had hoped           actually         to have a robot
12   here today    to show you all how it works                           with    the
13   team, but unfortunately               we couldn't             do that and
14   instead    brought     a representative                from First           named
15   Dia Stolnitz,      who is here behind                  me and she can
16   answer    any questions         that you may have about                      the
17   program.     You should         all also have a magazine                      that
18   describes    First.
19                 I really        have a challenge                 for you
20   today.     And that is as I said,                  there       are 30 states
21   who have participated,              that means           20 states          are not
22   participating.         I would        hope that each of you would
23   go back and encourage             teams within               your    states    to
24   get involved       and more       importantly,               to look at your
25   public    universities        because        one of the real




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 1   opportunities       that has not yet been                      supported        by
 2   very many universities               around       the country            is an
 3   opportunity     to get involved               with First              and with       the
 4   tremendous    business         and professional                 expertise
 5   that's    available       through        the competition.
 6                  So I would          urge you all to take a
 7   careful    look at this, as I said I think                             it provides
 8   a tremendous       opportunity           for us to get kids more
 9   excited    about    science        and math         and Dia will be here
10   and she can answer            any questions             if anybody         has
11   any.     Thank you.
12                  GOVERNOR        MILLER:          Thank         you, very much.
13   Very   interesting.
14                 At this time,              I'd like to recognize                   a
15   particular     member       of the NGA staff,                  Jim Martin.
16   I'd like him to come up here.                       This       is a bit of a
17   surprise     to him.        This year         Jim is celebrating                 his
18   30th anniversary          with NGA.           Since       1967, he has
19   served    as Director         of State-Federal                 Relations        and
20   senior    counsel     for the executive                 director         in which
21   capacity    he is responsible                for coordinating              the
22   governors'     legislative           agenda       with        the White     House
23   and Congress,       and you all know what                      a challenge
24   that's    been of late.            In addition,               he serves     as a
25   policy    coordinator         for the organization                     and as




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 1   liaison    to the governors'              Washington            DC offices.
 2                  I mean      30 years,          talk about              longevity.
 3   We figured     it out.         Jim has served                 approximately
4    473 governors       during       the course           of his tenure.
 5   That's    amazing     that     somebody         has had that many
 6   bosses    and yet still managed                 to keep his job.
 7   That's    how good      he is.         And    I think          that the main
 8   reason    why Jim has maintained                  his credibility            with
 9   the governors       is because           he thinks            like us.
10                  His first         response         to every
11   state-federal       issue      is how will            it affect          state
12   government.      He is and has always                     been        a staunch
13   defender    of the nation's              governors.
14                  And Jim,        to recognize             your     outstanding
15   service,    I'd like to present                 you with         this
16   remembrance     which       is on behalf            of all governors.
17   It's filled     with      letters        of congratulations                from
18   governors     who have        had the pleasure                 of serving        as
19   chairman    of NGA during            your     30 years          of service,
20   and let me add that every                  governor           appreciates        the
21   hard work     you've      done,      and that's           true,        I guarantee
22   you,   for all 30 years.
23                            (Applause.)
24                  Moving       right      down     to my swan             song and
25   certainly     it's a pleasure              at that        time        to be able




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 1   to recognize       Jim, but I also want to thank                         our
 2   executive    director,         Ray Scheppach,                and his entire
 3   staff who have worked             tirelessly           during        this past
 4   year    to advance     the state's            agenda         in our nation's
 5   capital.     Ray has been a sage counselor                           and an
 6   effective    counsel.          He has advised                so many of us
 7   and kept us on course             as we've         participated           in
 8   policy    negotiations.           His skill          transcends          the
 9   details    of these      issues       and he occasionally                 helps
10   us to see our common             interests         where       we might        only
11   see separate       interests        without        his guidance.
12                  I really        appreciate          it, Ray, and it's
13   been a pleasure        working        with you.
14                           (Applause.)
15                  I don't       have time to list all the staff
16   at NGA, but I want to share with you my
17   observations.        They are a talented                     group    and work
18   very hard    for each of us.                I do want          to single        out
19   a couple    of individuals,             make the age-old               mistake
20   that some    -- that I seem to get caught                            in some of
21   us do, and it's not meant                 because        we have so many
22   great    people    but there's          a couple         that        I've been
23   particularly       pleased      to work closely                with this
24   year.     First,    and last year as vice-chairman,
25   certainly,     Tess Moore,          who keeps          Rayon         track,




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 1   Susan Aide     (phonetic)          who quietly           keeps         us pointed
 2   in the right       direction
 3                 And you heard              from Governor                Carper
 4   already    about    the outstanding               job that Jennifer
 5   Bagstagal    has done on Medicaid                   and children's
 6   health.     And Susan        Gilocka        has been           working     so hard
 7   on the welfare        reform       which      we also          have great
 8   successes    on.      Elaine       Stephens         and Evelyn           Ganz
 9   (phonetic)     for their         support        on my initiative                First
10   Three    Years.     Patty      Sullivan         for her diligence                and
11   work    on all of our educational                   commitments.
12                  In these        eight       and a half years,               I've
13   had the pleasure          of working          with      all the staff.              I
14   can tell you       from top to bottom,                  inside         and out,
15   right    or left,     they are all fantastic.                          It's been        a
16   pleasure     to work with          all of you.                And     I'm going     to
17   need    that help when          I assume        now in the footsteps
18   of a great     leader,       Governor         Thompson,             in a few
19   moments     and that      is the Center             for Best           Practices.
20   I've had a good year             because        of my terrific
21   vice-chairman,        George       Voinovich,           because         he and his
22   staff,    especially        Tom Neals          and Ted Hollingsworth
23   have been     a pleasure         to work        with,         and I really
24   wish you a successful              year      ahead.
25                  I'd like to give                a little         commemoration




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 1   of the time here and I'm going                      to tip everybody                 off
 2   as to what       this gift       is.      These       are,      in fact,        cuff
 3   links.     Now,    this is the Silver                 State,          but we're
 4   also well-known         now for gold.               In fact, we produce
 5   more    gold    than any other           state      and all but two
 6   countries       in the State         of Nevada,          and these            cuff
 7   links    are part     of the process.                As a gold bar is
 8   poured,    small    amounts        splatter         to the floor              and
 9   typically       this product         is gathered,              remelted        and
10   poured    again.      But in some special                     cases     like this,
11   the unique       splatters       are so eye-catching                    that they
12   are utilized       for jewelry.             So these           pure     gold
13   pieces,    these    coins      and cuff         links         come to us
14   courtesy       of New Mont Gold Mine                in Nevada,           the
15   second    largest     gold producing              company           in the world,
16   and we hope you will             enjoy wearing                them and
17   remember       that the Silver           State      also has gold.
18   Leave    your    silver     here,      we produce             the gold.
19                    And now to the Nevada                  staff who have
20   helped    make my chairmanship                a productive              and
21   meaningful       experience,         and believe              me,     if you can
22   make me look good,           you can accomplish                     anything        so
23   I'm fortunate       to have        some terrific               people     out
24   there.      I think     if you wanted             to see my staff,                  they
25   were working       real hard all day, but at night                             they




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 1   were    the ones partying            like crazy          out there,
 2   dancing,    all those        crazy people             out there         yelling
 3   and screaming,        that's       my staff.            So hopefully           they
 4   have enjoyed    this as well.
 5                 The year         has been a great                 experience          for
 6   me because    of that assistance                  and I must           start    with
 7   the person    that spent           so much time as our liaison
 8   to NGA and kept me apprised                   of the issues,             and I'm
 9   going    to surprise       her a little             bit too because             I
10   have a gift    for her, and that is my assistant
11   Nicole    Lamboli     (phonetic).
12                           (Applause.)
13                 GOVERNOR         MILLER:          And,      of course,       in
14   addition    to Nicole,         we had my chief-of-staff                    Tim
15   Mulhall    (phonetic)        and our Washington
16   representative,         Leo Penny,          and my press              assistant,
17   Richard    Uri who has spent               a great        deal of time,             as
18   did all of the rest of my administrative                               assistants
19   and support    staff,         and I'm truly             grateful        for the
20   efforts    of all of them.
21                 I'd like to give a special                         thanks,       we
22   did a little     bit last night               but I'd like to give
23   another    special      thanks       to Steve         and Elaine         Wynn       and
24   all the staff here at The Mirage                        for what        they've
25   done,    but especially          to my longtime               friend,     Tom




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 1   Tate, who is the Director              of Tourism            for the State
 2   of Nevada,    who shared        some of the roles                  for this
 3   meeting    and helped     all of the logistics                     and the
 4   entertainment,     et cetera.            He and his staff at the
 5   Nevada    Commission    on Tourism           have done an
 6   outstanding    job and set a new standard                          in the
 7   hospitality    category       but that's           what Tom always
 8   does and I'd like Tom to come up because                             I have a
 9   gift for him as well.
10                 Tom's    job was to make               sure that all of
11   you had a good time.            My job was to drive                   Tom crazy
12   and I'm not sure which            one of us was more
13   successful.      Tom was assisted              by Cheryl           Rochelle
14   (phonetic)    who served        as the coordinator                   for the
15   host state activities,            and I want to thank her and
16   all the volunteers        that we had for making                      this such
17   a successful     conference.
18                 But as in the case,                I'm sure with each
19   and everyone      of you,       I have a special                   thank you to
20   the people    that were most            important           in helping           me
21   and that's    my wife,      Sandy,        and our children,                 Ross,
22   Corine    and Megan,     who literally             participated             in
23   meetings    and in scouting           locations            for the various
24   age categories     and all of you that know my family
25   know that we flunked          Planned        Parenthood             are kids




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 1   are 21, 19     and 7, so we got to see some diverse
 2   things    in accompanying            them and letting                 them make
 3   the choices    which        we hope worked              out well         for all
 4   of your    families       to visit.           Thank      you     for allowing
 5   me to be the chairman              of this association.                    It is
 6   and will    always      be one of the fondest                    memories        of
 7   my life.     Thank      you.
 8                           (Applause. )
 9                 GOVERNOR         MILLER:          It wouldn't            be right
10   for me to get more            applause        than Gladys             Knight     in
11   the same room       so thank you,             very      much.         And now,        I
12   would    like to calIon            Governor         Branstad           to give us
13   the report    of the Nominating                 Committee             for the
14   1997-'98    Executive         Committee.            Governor          Branstad.
15                 GOVERNOR         BRANSTAD:            Bob,      thank      you.       On
16   behalf    of all the governors,                 spouses         and families,
17   I want    to add my personal               congratulations               to you
18   and Sandy    and your         children        and all the staff                 and
19   host    committee     for putting            together,          in all the
20   years    I've been      coming       to this,         the most          enjoyable,
21   from a family       perspective,             governors'           conference
22   that we've    ever attended.                And this has been
23   wonderful    and most         enjoyable,          and I especially               want
24   to say that on behalf              of the families               because        I
25   know my kids    have had a great                  time and going            to




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
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 1   make    it more     challenging           for governors                who    are
 2   going     to host    conferences            in the       future.             We very
 3   much    appreciate         the hands-on          way     your     entire           family
4    has been        involved     in this.
 5                     I'm very      privileged           to present              the
 6   officers        and executive         committee          for     1997-'98           for
 7   the National        Governors'          Association.              Governor
 8   George     Voinovich        of Ohio       as chairman,            Governor           Tom
 9   Carper     from    Delaware       as vice-chairman,                    Governor          Roy
10   Romer     from    Colorado,       Governor         Lawton        Chiles        from
11   Florida,        Governor     Bob Miller          from      Nevada,           Governor
12   David     Beasley    from     South       Carolina,            Governor        Michael
13   Leavitt     of Utah,        Governor       Howard        Dean     of Vermont,
14   and Governor        Tommy     Thompson         of Wisconsin.                  I move
15   that    as the report         of the nominating                  committee           for
16   the officers        and members           of the Executive                   Committee
17   for    1997-'98     for the National               Governors'
18   Association.
19                     GOVERNOR      MILLER:          Is there         a second?
20                     (Response:        Second.)
21                     GOVERNOR      MILLER:          Any     discussion?                If
22   not,     call    for the question,             all     in favor          signify          by
23   saying     aye.
24                     (Response:        Aye.)
25                     GOVERNOR      MILLER:          Any     opposed?             Motion




                 LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada   89101
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 1   carried.          Chairman        Voinovich.
 2                                (Applause. )
 3                      GOVERNOR         VOINOVICH:             Thank      you,        very
 4   much,    Bob.        I   want     to tell you how much                      I    have
 5   enjoyed       working        with you this             last couple               of
 6   years.        I   really       appreciate          the fact that during
 7   your    chairmanship             of this organization,                      you have
 8   really    tried          to underscore            the bipartisan                 nature       of
 9   this organization,                kept us together.                    I    really
10   think    that we've            had such a successful                       year       with
11   the White         House      and Congress            because         of the fact
12   that we have underscored                      our bipartisan                nature.           I

13   also appreciate              the tremendous              sacrifice              of the
14   time that you've               given      this organization                     away    from
15   your    constituents             here     in your        state,       and also           the
16   sacrifice         that     Sandy      and your         family        have made           so
17   that you can participate                      in this organization.
18                      And     I know       it wasn't          spoken          of very
19   often    but we all were                aware      of the special                 medical
20   challenge         that you had in your                   life during              this
21   last year,          and we all admire                the way you handled
22   it.     And       I was amazed          at how you could                   keep going
23   the way you did and didn't                        seem to allow                 it to let
24   you,    to bring          you down        and you were             always         so
25   positive          in what      you were         doing,       and it's my honor




                   LAURIE WEBB & ASSOCIATES                         (702) 386-9322
                              517 South 9th Street, Las Vegas, Nevada   89101
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 1   to present       to you a small            token      of our
 2   appreciation,       something          for you to remember                 your
 3   contribution       to this organization,                      the people        of
 4   your    state    and to the people              of America,             this gavel
 5   which    is presented        to Bob Miller,               Governor        of
 6   Nevada    for his outstanding                leadership          as Chairman
 7   of the National         Governors'           Association              1996-'97,       on
 8   the occasion       of the most magnificent                      NGA Annual
 9   Meeting    we have ever had,               July     10, 1997.
10                    GOVERNOR      MILLER:          That part             isn't on
11   there.     Thank you.
12                    GOVERNOR      VOINOVICH:             We really          want    to
13   thank    you and Sandy         for your warm              hospitality.               And
14   I want    to say this,         that you advertised                     this as the
15   Entertainment       Capital        of the World,               and indeed        it
16   is the entertainment             capital        of the world,             and I
17   think    all of us are going               to leave Nevada               with    some
18   wonderful       memories.        My wife        Janet         and I are going
19   to be thinking        about      the Grand          Canyon       and
20   Mt. Charleston        and Lake Mead             and all of the
21   magnificent       events      that you have had here                     including
22   last night's       extravaganza.               I thought          that    I was at
23   one of the Rock         and Roll Hall             of Fame         induction
24   ceremonies       last night.           And     I thought          and remarked
25   to Janet     afterwards         that you have             this every           night




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              106




1    here    in this city and it's terrific.
2                     I'd also like to publicly                     acknowledge
 3   Steve    and Elaine      Wynn      and the outstanding                   job that
4    they did here at The Mirage                   to really          provide        us
 5   with    incredible      accommodations.                They were          just
 6   wonderful,       and I think         I would        be remiss           if I
 7   didn't    echo your words            to the fact that not only                           is
 8   Steve    and Elaine      contributing             to the economy               of
 9   this state,       but they are really                 great      corporate
10   citizens       and are real partners                to you in some very,
11   very    important     things       in making          living          and working
12   in this state better.
13                    As I mentioned,            it's been enjoyable                     to
14   be working       with you, but I'd like to echo again
15   your words       in congratulating              Tim Mulhall,             Leo Penny
16   and Nicole       for the great           cooperation            they have
17   given    us.     It's just been great.                    You always           start
18   out these       relationships,           you're       never      sure how
19   things    are going       to work out and they were                       just
20   terrific.
21                    Yesterday,        I had a chance               to spend        some
22   financial       time with Tom Carper                and we took a crack
23   as seeing       if we could        get something              done,      and Tom
24   and I are just hoping              that our staff will be as
25   good a relationship            with you as Bob has had with




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 lour       staff.     And though         we weren't           successful,        I
 2   think    that God gave us a chance                    to get to know each
 3   other    a little     better.
 4                   I think       some of you know                that Tom is a
 5   graduate     of Ohio State           University.              We've     worked
 6   together     on several        occasions,           and he's
 7   vice-chairman       of the Job for America                      Graduates
 8   Program    and we got to know each                    other       there,    and,
 9   Tom,    I really    look forward             to working          with you as
10   the vice-chairman           of this organization.
11                   I'd also        like to recognize                 and I'm
12   pleased    they're      still      some governors               left here
13   later,    but so many         of you who go out of your way to
14   help    this organization            and are called              upon     to take
15   on a special       cause      and jump on a plane                     and come to
16   Washington      and lobby.           The staffs           of your
17   organizations,        I think Ray Scheppach                     would     be the
18   first    to admit     that his staff              is enhanced            by many
19   of our staffs       in Washington              that are really             trying
20   to be team players,             and I think           that we're          grateful
21   for your     staffs     and for their             cooperation.             We're
22   thankful     to the NGA staff              for the great               job that
23   they're    doing,     and I think            too often          we fail to
24   realize    what    a large        impact       this organization             is
25   having    on our respective              states       and improving




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
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 1   government     in this        country.
 2                  One of the things                that     I want        to follow
 3   up what    Bob has done           is working         together.           If you
 4   look back     to welfare          reform,       you can discuss               it all
 5   you want     to but it wasn't             until      Republicans          and
 6   Democrat     governors        got together           and lobbied          this
 7   together     that we were          able     to get it through                 the
 8   Congress     and that       legislation,            in my opinion,             the
 9   most    important      legislation          perhaps        that's       passed       in
10   terms    of reforming         our welfare           system.
11                  And     it's really           interesting             that where
12   some people       had predicted            that     it would          be a race
13   to the bottom.           It's been         a race      to the top and the
14   governors     have been         the leaders           in that         race.     And
15   I think    that    this organization                has been very,             very
16   helpful    to all of us in making                   sure that we do have
17   a race    to the top because               there      are a lot of things
18   that needed       to be worked           out in our respective
19   states.
20                  Unfunded         mandates        was another            one where
21   we got together          in a bipartisan              basis     and put that
22   through,     and we'll        need     to continue           to work      on
23   that.     The State        Drinking        Water      Act was another               one
24   where    we got together            and some        folks      said we
25   couldn't     get it done,           and we did by organizing                    on a




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                          517 South 9th Street, Las Vegas, Nevada 89101
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 1   bipartisan       basis.      Medicaid,          over      the past year,
 2   governors       have achieved          a series         of major         goals.
 3   First,    we were granted            additional           flexibility          and
 4   we hammered       away at it and we got it.                           And second
 5   we have been       successful          in expanding             health
 6   benefits     to millions         of children,             and third,          we've
 7   defeated    per capita         caps which           would       have
 8   dramatically       driven      up the costs             to State
 9   government       and taken money            away      from other
10   important       state   responsibilities                and that has been
11   done again       with   a bipartisan            effort.
12                    The Born amendment,                we've       been     talking
13   about    that    for how long.             We got rid of that and
14   we've    got more money          for children,                health     care,    but
15   we've    got it with as little                strings          as possible        so
16   we can do a good          job of taking             care of the children
17   in our respective           states.
18                    I mention       these       again      because         it's been
19   done on a bipartisan             basis.          It's funny,            Jim
20   Martin,    where's      he at -- over             here was recognized
21   for 30 years       of service.             I got to know Jim the
22   first    time when      I was President               of the National
23   League    of Cities,        and we worked             on new federalism
24   together     and trying         to deal with            the Fair Labor
25   Standards       Act and saving           tax exempt            financing       and




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                              110




 1   it was really       interesting.               It was during             the time
 2   that Lamar       was chairman          and Bill         Clinton         was
 3   vice-chairman       of this organization                      we all worked
 4   closely    with    state      and local         government
 5   organizations,        and we were            able     to get a great                deal
 6   of work    done,    and I know           some of you probably                      say
 7   this    is coming     from an old mayor                 and county
 8   commissioner,       but     I think        that working               with    that
 9   state    and local government                coalition          is something
10   that we ought       to really          work     on and improve                as an
11   organization.
12                    Because      I can tell you one thing:                            You
13   get the governors,            the county          commissioners               and
14   state    legislators        all going         before          Congress        on a
15   bipartisan       basis    and say this            is what        we want,           and
16   it's very     difficult         for them to say no to us.                           So I
17   want    you to know       that we're          going       to continue              to
18   work    on that.
19                    In addition,          which      we discussed               in our
20   winter    meeting,       the goals         will     be to increase                 the
21   efficiency       of government           programs,            insure     the
22   benefits     of federal        programs,          justify         their       costs,
23   evolve    more    responsibilities              to the states                and
24   protect    long-term        investments           critical            to the
25   future    of our country.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                                111




 1                     It was         interesting          in February            when
 2   someone       spoke     to us that           seven      of the        President's
 3   top,    of his       top    8 priorities,             deficit         reduction,
 4   education,        technology,            exports,         crime,          welfare
 5   reform     and    families,          had more         to do,        I think,         with
 6   state    and     local      government           than     it has          to do with
 7   the    federal       government,           and    the     8th priority              was
 8   peace    and     freedom.          And     I've     reminded         people         that
 9   were    all    commander-in-chiefs                  of our         respective
10   national       guard       so we know          something           about     that,
11   also.
12                     And      I think       that     we need          to emphasize,            I
13   think,     to Congress            and    to the       President            if we're
14   going    to make        progress         on these         goals       that    the
15   president        has    set out         that     the better          partnership
16   they    have     with      us,    the more         successful             they're
17   going     to be with          achieving          their      goals.
18                     You have          in front        of you         a brochure.
19   This    is it, okay.              It's     all you're             getting     from
20   me.     Very     short.          I would       ask you        to read        it.      If
21   you're     a fast       reader       you     can do it in eight
22   minutes,       if you're          slow     it takes         you     ten.      And     this
23   is it.        This     is the priorities                that       we put     together
24   for this       organization.               Most     of you will             find     that
25   all    I'm doing        is building            on the past            initiatives,




                   LAURIE WEBB & ASSOCIATES                        (702) 386-9322
                             517 South 9th Street, Las Vegas, Nevada   89101
                                                                                           112




 1   some of the people            that are here,              Tommy        Thompson
 2   moving    forward     with      some of the things                    you've       taken
 3   on.     Bob, your     Zero to Three              Initiative            that    I
 4   think    is so very,        very     important          because         if we are
 5   going    to make    real progress              in that area,             it's
 6   something    that we're          going       to have          to stick        to it.
 7   And   it was interesting             that Lamar           was talking              about
 8   it's time    for results,            and it just hit me the time
 9   for results       is what       I used when           I put my education
10   package    together       when     I ran for governor.                    We're
11   still    dealing    with      the same programs.                      We now are
12   committed    to achieve,           and we want            to work        with       the
13   achieve    organization          to make         sure     that we do have
14   international       standards.             And    I've talked            to Bob
15   Schultz    about    working        with      him to see if there's                    a
16   better    way that we can work with                     that
17   organization.         The Center           on Best        Practices,           Tommy
18   has done    a spectacular            job with         that and Bob             is
19   taking    over,    and again,          I think        the seminars             that
20   you've    held    around      the country           have been very,                 very
21   helpful    to us.
22                    I think      after      the next         couple        of weeks,
23   we'll    need one on Medicaid.                   If we can't            solve       this
24   problem    that we've         got right          now with         the FLSA and
25   welfare,    we may have           to revisit          the welfare             again.




                LAURIE WEBB & ASSOCIATES                       (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                        113




 1   Hopefully,       we will be successful                  in connecting            some
 2   of the problems         there.         But if we aren't                 again,
 3   we're    going    to need       to work        together.              I was amazed
 4   yesterday.        We were       talking        to Paul         Patton     and Paul
 5   was complaining         about      some things            and I said Paul,
 6   "We've got that taken              care of in Ohio."                   And he
 7   started    talking,       didn't       we Paul,         about         some of the
 8   things    that will be very              helpful        to him.          And the
 9   more we talk together,               the more we help each other
10   out.     I think    the better           off we're            going     to be and
11   the better       off this organization                  is going         to be.
12                    I'm looking         forward        to having           as many    of
13   you as possible         in Ohio on October                    6th through        8th,
14   and Janet     and I would          love to have you come                   in on
15   Sunday.     We're     going      to have        a little          event    at the
16   residence     and maybe         have an informal                discussion
17   about    some of our mutual              problems.             I'm just highly
18   honored    that    I have       an opportunity                to serve     this
19   organization       as its chairman.
20                    Again,     I want       to conclude            by thanking
21   Bob and Sandy       for their          hospitality.
22                    Sandy,     Bob has told me -- yeah,                      I said
23   biggest    question       you keep asking               is what         are you
24   going    to do after        you leave,          and, Sandy,             I want    to
25   you know     that he would           make      an extraordinary             master




                LAURIE WEBB & ASSOCIATES (702) 386-9322
                         517 South 9th Street, Las Vegas, Nevada   89101
                                                                                         114




 1   of ceremonies     for any event             in this town.               I think
 2   that he could be the lead dancer                      in a new group
 3   called    the Millers      Dancers,         terrific,          and I know
 4   for sure that he'd make a great                     straight         man for
 5   Pete Barbudi     (phonetic).
 6                  Again,     I want       to thank you for
 7   everything,     and I want you to know that                          I think   the
 8   frosting    on the cake,         the frosting               on the cake of
 9   all the spectacular          stuff       that we've           experienced
10   here were     the wonderful          letters        from the children
11   that were on our beds each night                      that we had a
12   chance    to read before         we hit the pillow.                    I'd like
13   to conclude     with two mottoes               that the people            in the
14   Ohio hear quite       often      from me.           They are my special
15   mottoes.      The one is the motto                I had when           I was
16   mayor    of Cleveland       and that was,             "Together         we can
17   do it."     And another        motto       is the motto              of the
18   State    of Ohio and our state motto                    is, "With God,
19   all thing     are possible."             And    I think        that working
20   together    and with God's           help,      working        together
21   particularly     in a bipartisan               basis,        we can truly
22   make    a difference      in the lives            of our citizens              in
23   this country.       Thank      you for the honor                    of serving
24   you.
25                  Bob says I got to adjourn                      it.      We're




                LAURIE WEBB & ASSOCIATES                     (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada   89101
                                                                                          115




 1   adjourned.       Tommy.
 2                  GOVERNOR        THOMPSON:           Mr. Chairman,              if I
 3   just might     indulge        the conference             for a half a
 4   minute.      First,     let me congratulate                   you and Janet.
 5   It is a tremendous            honor     to lead this
 6   organization.          And    I have      had that privilege                  and
 7   also the privilege            of being       the chair             of Center        for
 8   Best   Practices       right    now.       But I would               like to
 9   conclude    by saying         on behalf        of all Republicans                   and
10   Democrats     that Bob and Sandy Miller,                       you have had
11   done   a outstanding          job.      You were my vice-chairman
12   and I got to know you and Sandy,                       and I think            you've
13   just done an outstanding                job.       And       I have     to
14   somehow    replicate         a convention          next year           in
15   Wisconsin,     and it is going              to be extremely
16   difficult.       All    I can say is that                I want        to make
17   sure that Bob and Sandy               come back          to do the dancing
18   and in Milwaukee         so we have           that.          But     I just would
19   like to end, Bob, by saying                   it was a wonderful
20   conference.       You and Sandy             should       be very proud              of
21   yourself.      Your     leadership          was exemplary,              and
22   you're    my friend,         and I would         just like to conclude
23   by saying     thank you for being                such a nice guy and a
24   nice   family.
25                           (Applause.)




                LAURIE WEBB & ASSOCIATES                      (702) 386-9322
                        517 South 9th Street, Las Vegas, Nevada   89101
                                                                      116




 1                GOVERNOR     VOINOVICH:            There being no
 2   objection,   we're   adjourned.
 3

 4

 5

 6

 7

 8

 9

10

11

12

13

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18

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25




             LAURIE WEBB & ASSOCIATES (702) 386-9322
                     517 South 9th Street, Las Vegas, Nevada 89101
                                                                                                           117




 1                       REPORTER'S                  CERTIFICATE
 2

 3   STATE OF NEVADA
                                  ss
 4   COUNTY   OF CLARK
 5

 6                 I, Laurie            H. Webb,                 Certified               Shorthand
 7   Reporter,    do hereby            certify            that           I took down             in
 8   Stenotype    all of the proceedings                                 had in the
 9   before-entitled       matter             at the time and place
10   indicated    and that thereafter                            said shorthand                  notes
11   were transcribed          into typewriting                             at and under              my
12   direction    and supervision                    and that the foregoing
13   transcript    constitutes                a full,              true and accurate
14   record   of the proceedings                     had.
15                 IN WITNESS               WHEREOF,               I have hereunto                    set
16   my hand and affixed               my official                    seal in my office
17   in the Co~y       of Clark,                State of Nevada,                          this         l&~
18   day Of~~                                 ' 1997.
19

20

21

22

23
                         ~lIW.e#- CSR No.
                     Laur1e       H. Webb,                                         50, RPR-RMR
24                        - - - - - - - - ---- -- _ ... - --,
                           I •
                           I                     PubIIo-State
                                            ~OFCLARK            or Nevada   I
                                                                            I
25                         :                   LAURIE H. WEBB               :
                           I     ..    .:      My AppoIntm8nt ElcpIfeS       I
                           I1!,~~1                JanUaI'Y 14, 2000         _I




                LAURIE WEBB & ASSOCIATES                                    (702) 386-9322
                       517 South 9th Street, Las Vegas, Nevada                   89101
CLOSING PLENARY SESSION                                                                   WEDNESDAY, JULY 30, 1997

 $                                                              active 88:25                    alon 49:24
                                 4                              activities 2:5; 78:5; 101:15    al ne 29:4; 55:5; 58:22;
 $100- 82:11                                                    actlvl~ 8:8; 23:20; 93:21       84:1 ; 87:20
 $1500-a-year 26:22              40 29:19; 54:13; 83:1,2        actual ~ 9:22; 57:12; 65:5;     air ady 11:13,14; 16:6;
 $1500; 33:5                     40,000 28:17                   66:10; 9:13; 72:7,23;           22:25; 36:5,20; 42:15; 53:24;
 $2,000 32:20,22                 400,000 49:23                  76:4,20; 92:17; 94:8,11         65:10; 73:9; 78:23; 81:6;
 $200- 82:11                     400O-emplo~ee 5:7              add 73:24; 96:20; 102:17        98:4
 $2500; 33:5                     45 49:8; 78: 1                 added 39:3l,9,13; 40:11;        alternatives 80:1
 $340:12                         47396:4                        41:18; 73:2 ; 74:2              although 74:14
 $3,00033:6                                                     addition 49:7; 53:11; 95:24;    alwals 11:24; 19:21; 58:12;
 $300- 82:12                     5                              100:14; 110:19                  82:1 ; 96:12; 101:7; 102:6;
 $400- 82:12                                                    additional 40:11; 59:5;         104:24; 106:17
 $5,000 33:8                     50 1:22; 22:18; 117:23         109:3                           amazed 81:3; 104:22; 113:3
 $500 49:20; 81:25; 82:12,18     5008:22; 16:8; 73:22           address 4:8; 57:23; 62:15;      amazinp 50:18; 54:10,13;
 $80,000 29:6                                                   76:11,12                        69:9; 8 :7; 96:5
                                 50s 28:24
                                                                addressing 79:1                 amended 37:1; 39:2; 45:12;
 ,                               56,00070:15
                                                                adrUrn 114:25                   46:19
                                                                ad ourned 115:1; 116:2          amendment 109:12
                                 6                              ad unct 78:1                    amendments 35:13
 '84 14:6
 '864:12                                                        administer 42:12                America 7:6,12; 10:25; 15:3;
                                 6021:9                         administered 72:10              22:13; 23:10,14,17; 88:7;
 '8993:17                        60s 28:24
 '91 88:17                                                      administering 13:13             105:4; 107:7
                                 6:0020:2                       administration 38:25; 88:24     American 71:24; 93:15
 '9388:18                        6th 113:13                     administrative 100:18           among 36:6
                                                                administratively 43:8           amount 14:11; 15:20; 55:23;
 1                               7                              admire 104:21                   59:22; 73:5
                                                                admit 107:18                    amounts 99:8
 1069:12; 105:9                  7102:1                         adopted 46:3                    analogy 68:1
 10,000 14:9; 22:5; 28:17        70 17:5; 18:18                 adopting 37:3                   Andy 53:14
 11 35:12                        7000 28:20; 93:18              adoption 37:17                  animals 64:8
 11- 19:19,21                    70s 28:24                      advance 97:4                    anniversary 95:18
 11.849:4                        7:0020:2                       advances 57:3                   annual 2:11; 105:8
 126:12; 20:1; 33:6; 44:23                                      advantage 59:21; 75:13          answer 94:16; 95:10
 12- 19:20,21                    8                              advertised 105:14               answered 61:11
 1340:7                                                         advice 13:5; 59:5               answers 12:24
 13-year-olds 19:20,21           8111:3                         advised 97:6                    anticipation 49:8
 1416:5                          80 9:8; 15:17; 20:7            affect 96:11
 1404:22                                                                                        anybo~ 70:12; 71:5; 75:25;
                                 89109 1:0                      Affirmative 17:22               77:6; 9 :10
 15 10:4; 85:4                   89th 2:11                      affixed 117:16                  Anything 74:9; 99:22
 15,00049:8                      8th 111:7; 113:13              afford 67:20,20                 anyway 81:22
 15-1ear 85:12                                                  afraid 8:20                     apparently 29:12
 15 93:18                                                       African-American 17:18          appear 40:21
 1623:11                         A
                                                                afternoon 19:14,16; 44:11       append 58:16
 19102:1                                                        afterwards 105:25
 196795:18                       abill~ 48:9; 51:25; 52:3;                                      AG~lause 5:13; 25:15;
                                 69:1 ; 75:19; 90:25            aealn 5:23; 52:17; 84:4,4;      6 : 4; 87:21; 91:14; 96:23;
 1980s 22:10                                                    9 :10; 106:14; 109:11,18;       97:14; 100:12; 102:8,10;
 1983 7:14; 9:13; 14:6; 17:25;   able 2:13; 27:2; 54:21;
                                 55:13,17; 56:2,20; 59:20;      112:19,25; 113:2,20; 114:6      104:2; 115:25
 88:16
                                 61:2; 63:4; 68:12; 69:13;      against 36:22                   applications 75:15
 19854:12                                                       Age 53:7,7; 69:2; 101:24        applied 42:20
 1985-'86 7:25                   73:15; 76:17; 83:11; 85:9;
                                 89:5,6; 96:25; 108:7; 110:5    age-Old 97:19                   applies 79:4
 198721:15                                                      agencies 37:5; 56:15            applying 57:9,10
 198993:2                        absolutely 87:19; 90:16;
                                 92:1                           aqenda 7:4,4; 8:7; 10:15,18;    agf)reciate 30:19; 35:7;
 199015:13                                                      1 :8,11,12,14; 13:17; 20:15;    8 :2; 97:12; 103:3; 104:6,13
 1991 8:21; 15:13                academic 20:6; 34:1
                                 access 49:21; 75:3; 77:9,16;   48:22; 95:22; 97:4              appreciates 96:20
 1996-'97 105:7                                                 ages 44:19,22; 68:12            appreciation 105:2
 19971:24; 25:4; 49:4; 105:9;    87:2
 117:18                          accessibility 65:10            aeree 9:23; 59:3; 71:21;        apprised 100:8
                                 accessible 18:10; 58:7;        8 :6                            a~proach 83:24; 85:19;
 1997-'98 102:14; 103:6,17                                      agreed 15:6; 25:21; 70:3        8 :15
 199840:13                       64:20
                                 accident 64:7                  Agreement 3:3                   approaches 67:5
                                 accommodations 106:5           ahead 6:16; 8:1621;             approaching 4:22
 2                                                              13:6,16; 15:10; 39:22; 55:12;   appropriate 42:6; 91:4
                                 accompan~inB 102:2
                                 accomplis 9 :22                57:2; 61:20; 98:24              Appropriation 40:10,25
 249:5                           accomplished 2:19              Ahead" 49:23                    approve 36:19
 20 52:~ 14,15,20; 54:16;                                       Aide 98:1                       approved 36:17
 69:12;   :21                    accordin~ 48:6
                                 accounta IIIty 27:12           Air 36:24; 74:11                approximatel~ 96:3
 2000 38:12; 77:25               accurate 117:13                airlines 52:22                  area 16:16; 3 :16; 48:8;
 21 102:1                                                       alarmed 85:5                    57:22; 58:17,20; 74:20;
 2289:14,16                      Achieve 10:20; 13:15; 33:9;
                                 46:13; 91:4; 112:12,13         Albert 23:16                    112:5
 2525:9                          achieved 39:16; 40:20;         Alexander 4:8; 5:12,14;         areas 69:6; 78:11
 250014:21                       109:2                          12:14; 25:24; 28:12; 30:9;      aren't 17:6; 58:19; 66:25;
 275:10                                                         32:7; 34:2                      71:13; 113:2
                                 achieving 111:17
                                 aCknowledae 47:7; 106:2        Allen 34:3; 41 :5,6; 43:4;      arithmetic 12:23
 3                                                              88:6,12; 89:9; 91:17; 92:3      Arkansas 6:14




•
                                 across 10: ; 17:1; 51:25;
                                 52:4                           allow 67:9; 104:23              ar und 9:16; 57:16; 93:11;
 30 1:29; 29:19; 93:19; 94:20;   Act 36:25; 38:17' 108:23'      all wed 76:9                    95:2; 112:20
  6:2,19,22; 109:21              109:25           •        •    allowln&>57:4; 72:20; 102:4     arrived 16:22; 17:10
 30th 95:18                      act d 35:25; 45:11,14          allows     :8                   artlcl 59:9
 34001:15                        Action 17:22; 25:19            almost 6:21; 7:25; 10:7;        ask 9:12; 28:10; 53:15; 56:6;
 3:0019:14                       actl ns 10:15; 36:19           25:11; 48:7; 54:5; 74:24        73:8; 74:6; 85:13; 90:7;


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                   Index 1
CLOSING PLENARY SESSION                                                                     WEDNESDAY, JULY 30, 1997

111 :20                         B aHy 94:1                         B b 5:22; 89:10; 102:15;       calling 30:13; 39:10,13;
asked 27:10; 55:20; 92:7        became 8:2; 21 :14; 52:25          103:11; 104:4; 105:5;          81:9; 85:24
asking 82:21; 113:23            bec me 4:23; 26:1620 23;           106:25; 108:3; 112:3,14,18;    calls 36:18; 40:6; 45:18
assembl d 24:17,18,18,19        31 :12; 45:13; 52:9,14,16;         113:21,22; 114:25;             campaign 56:9
assessed 32:1                   67:12; 83:9; 93:1                  115:10,17,19                   can't 11:7; 112:23
assessment 27:4,5; 33:2         bec mes 60:17; 84:2                b dy 27:22,22; 48:13;          Can 32:16
assigned 76:11                  becoming 68:7                      91:23,23                       Canyon 105:19
assistance 45:21; 100:6         beds 114:11                        boggles 19:22                  capabilities 79:12
assistant 100:10,16             before-entitled 117:9              bold 11 :16; 22:9              capable 84:15
assistants 100:18               began 6:2; 8:18; 14:6; 44:13       bonding 85:4                   capacity 95:21
assisted 101 :13                begin 2:2; 10:22; 12:2;            bonds 85:5                     capita 109:7
ASSOCIATION 1:6; 2:12,20;       35:"21                             bonus 28:4,5; 46:15            capital 30:14; 84:6; 97:5;
6:13; 15:9; 21:13; 24:6,11;     beginning 23:12; 26:21,24;         bonuses 46:5,8,12              105:15,16
39:17; 89:1,4; 102:5;           27:1; 40:f9; 59:20; 69:3           book 49:23; 85:25              caps 109:7
103:7,18; 105:7                 begun 36:20                        borders 37:13                  car 22:12; 23:2,18,23;
assum 61 :13; 87:10; 98:17      behalf 2:21; 44:8; 46:17;          Born 109:12                    54:24,25
assure 82:22                    47:11; 96:16; 102:16,24;           borrow 21:1                    card 9:2,5; 12:4; 18:8;
astronauts 9:25                 115:9                              bosses 96:6                    76:20,21,23; 77:2,10,12
attended 79:2; 102:22           behavior 53:21                     Boston 15:16,21; 24:20         care 2:8; 4:10; 5:9; 19:1;
aH ntlon 36:8                   behind 67:21; 74:1; 79:11;         bottom 8:15; 24:14; 98:14;     50:25; 52:23; 65:1; 71:3,15;
attltud 29:9; 39:18             94:15                              108:13                         87:10; 88:5; 109:14,16;
Att rneys 45:22                 Belgium 34:9                       bottoms 80:16                  113:6
attracted 93:18; 94:3           believe 7:5,5; 16:23; 32:6;        Boulevard 1:15                 career 25:18,20; 91 :20
attractive 69:7                 39:18; 40:5; 50:8; 51 :20;         Branstad 7:15; 32:15;          careful 95:7
August 60:7                     53:12; 73:21; 84:18; 99:21         43:2,3; 102:12,14,15           Carolina 30:14; 31 :18;
Australia 6:22                  believes 36:12                     break 19:6; 86:11              44:25; 103:12
Australians 6:23,24             bench 13:9; 34:14,16               breakthrough 82:23             Carper 25:23,24; 44:6,7;
authenticating 76:16            benefit 54:7; 69:23; 71 :8;        breakthroughs 66:1             47:4; 98:3; 103:9; 106:22
auth ntlcatlon 74:9             83:25                              brief 92:6                     carried 38:3; 44:3; 47:3;
auth nticity 74:12,19; 76:10    benefits 48:10; 67:15; 109:6;      bright 82:7                    48:21; 104:1
auth rlty 39:5                  110:22                             bring 9:14; 27:25; 65:6;       carry 3:15; 57:15; 81:15
aut 4:18                        Berlin 9:15; 21 :16                66:1; 67:15; 78:9; 104:24      carrying 28:2
aut matlcally 31 :21; 40:24     besides 57:13                      bringing 25:17                 cars 10:5; 22:14,16
autom bile 23:10; 65:5          best 5:19; 7:7,13; 9:17;           brings 68:15                   case 57:1; 101 :18
auto 4:20                       10:16; 11 :17; 16:6; 21 :8,10;     broad 11:11; 41:17             cases 73:3; 99:10
availability 74:11              22:16; 25:1,11,12; 27:18;          broadening 39:7                categories 101 :24
availabl 12:4,8; 17:9; 60:23;   37:12; 45:3; 55:12; 78:15;         brochure 111 :18               category 101:7
95:5                            81:13; 91:8; 98:19; 112:17;        brochures 64:4,18              cattle 89:15,19
average 50:20                   115:8                              brought 4:20; 55:21; 94:14     caught 97:20
av id 36:21                     bestow 88:7                        browse 77:6                    cause 79:10; 107:15
awar 43:13; 104:19              Better 4:24; 5:20; 7:24; 11 :8;    browsing 73:17                 causing 86:24
away 18:19; 20:5; 23:11;        16:9,17; 17:12,15,23; 18:5;        buckaroo 89:15                 CCR 1:0
29:2; 32:6,11; 53:20; 77:12;    20:13; 26:4; 30:24,25;             Budget 3:3; 7:10; 40:6,8,12;   celebrating 95:17
86:25; 104:14; 109:4,9          31:1,12; 33:3; 50:23; 51 :12;      56:18; 79:17; 83:5; 85:15      Celebration 2:14
awful 70:16; 85:7               53:23; 54:21; 75:12; 82:24;        budgeting 79:24; 80:3          center 19:1; 45:8; 61 :8;
Aye 37:21,25; 38:1; 43:25;      83:2; 106:12; 107:3; 111 :15;      budgets 50:19; 59:7            64:3; 78:15; 81 :13; 93:20;
44:1; 46:25; 47:1; 48:18,19;    112:16; 113:10,11                  build 93:12                    98:19; 112:17; 115:7
103:23,24                       beyond 4:6; 7:9,10                 building 66:9; 81 :5; 83:8;    centralized 52:24
                                bid 61 :6; 62:12                   111 :25                        CEO 53:15; 79:3; 94:4,5
 B                              bidding 62:20                      bulb 22:5                      ceremonies 105:24; 114:1
                                bids 62:5,7                        burden 42:25                   certain 70:14; 78:11; 79:14
 baby 19:4                      big 31 :23; 40:22; 51 :8; 62:9;    bureaucracy 55:23; 71 :23      certainly 47:8; 49:18; 57:8;
 back 6:8.1.9;14:17,24; 24:7;   66:4; 67:23,23; 69:22              Bush's 5:4                     73:4; 91 :18,18; 96:25; 97:25
 26:8; 28:;.::4;44:17; 57:11;   bigger 50:19                       business 2:7,8; 12:20;         certainty 52:16
 63:5; 65:16; 82:15; 83:13;     biggest 18:20; 113:23              20:9,12; 35:5; 40:3; 47:19;    CERTIFfCATE 117:1
 87:12; 94:23; 108:4; 115:17    bike 64:9                          49:16; 52:3; 53:8,9;           certification 31 :17
 backgr und 56:18; 59:25        bill 20:4; 30:15; 40:10;           55:5,6,11; 57:10; 61 :11 ;     certified 15:1,5; 26:16,21,23;
 bad 11:24; 13:23;5; 19:12;     44:12,13; 48:4,4; 49:1; 50:3;      66:16; 69:9; 88:4; 93:25;      29:13,20; 117:6
 31 :20; 50:23; 62:~            71 :20; 73:13; 76:4; 77:14;        95:4                           certify 117:7
 badge 71:1                     79:1; 81 :18; 92:15,24; 110:2      businesses 73:10; 93:10;       cetera 101:4
 Bagstagal 47:11; 98:5          billion 40:7,12; 49:4,5; 82:5      94:3                           chair 115:7
 balance 2:22; 40:19            bills 42:3,18; 62:3; 75:12;        busy 2:17; 11:6,7; 16:17;      Chairman 4:3,9,11; 6:13;
 Balanced 3:3; 7:9              76:5                               20:1"3; 23:21; 79:2            22:15; 35:21,24; 37:17;
 Bank 18:25; 75:12; 83:19       binds 88:10                        buy 54:24; 75:15; 84:13        38:4,8; 41 :6; 44:5,8; 45:11;
 banks 52:21; 77:1              bipartisan 2:19,25; 11 :12;        buying 61:12                   46:17; 47:4,24; 49:1; 52:7;
 bar 99:7                       88:11; 104:8,12; 108:21;           bypassed 82:13                 81:13; 91:16; 94:5; 96:19;
 Barbudi 114:5                  109:1,11,19; 110:15; 114:21                                       102:5; 103:8; 104:1; 105:6;
 bar Iy 9:7                     bit 24:8; 27:17; 72:18; 78:12;     C                              110:2; 113:19; 115:2
 Barnett 18:25                  79:3; 95:16; 100:9,22                                             chairmanship 99:20; 104:7
 Barry 12:16                    blessed 91:10                      cake 114:8,8                   chairs 3:12; 35:18
 base 13:9; 39:9; 80:15         block 35:19; 37:19; 41:3           calendars 60:23                challenge 25:19; 68:15;
 basic 68:3,5                   blocks 81:5                        California 17:2                94:19; 95:23; 104:20
 basically 12:10                blunt 7:22                         call 3:23; 37:23; 43:24;       challenges 71 :25; 89:25
 basis 51 :22; 60:22; 81:10;    Board 14:14,15; 15:1.1.4;          46:24; 48:17; 50:10; 55:13;    chall nglng 50:22; 103:1
 108:21; 109:1,19; 110:15;      20:18; 29:10,13,20; 3;.:::13,17;   61 :4; 63:12; 64:2; 102:12;    chance 13:8; 16:13,17;
 114:21                         94:5                               103:22                         17:22; 20:20; 50:15; 106:21;
 basketball 93:13               b arder 17:1                       call d 30:15; 52:8; 66:2;      107:2; 114:12
 B asley 103:12                 boards 13:8; 24:19;                76:20; 85:25; 87:5; 92:20;     change 31 :12; 38:21; 40:22;
 beat 23:2                      33:20,22; 34:13,16                 94:1; 107:14; 114:3            53:20; 54:8; 56:6; 57:17;


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Meq:e                                                                       Index 2
   CLOSING PLENARY SESSION                                                                    WEDNESDAY, JULY 30, 1997

   64:17; 80:11; 81:8; 89:18        C aliti n 39:25; 110:9           86:14,17,21; 87:7,9             cost 20:3,4; 51 :9; 66:2;
   chang s 3:6; 36:23; 37:3;        Cast 10:7                        c mput rs 51:11,24; 52:13;      77:10; 92:18
   52:18; 82:10                     code 58:15                       53:4; 54:13,15; 55:7;           c stly 26:17
   changing 53:8; 55:25; 57:22;     c ins 99:13                      62:6,8,10,11; 67:12,18; 68:6;   costs 83:22; 109:8; 110:22
   82:7; lJ6:l5; 88:20              c lleagu 5:11                    75:8; 81 :6; 83:17; 85:8,17     c uldn't 56:24; 94:13;
   chapt r 85:24                    c lIeagues 30:21; 45:11          c mputing 52:13                 108:25
   chapters 86:5                    collected 42:1                   concept 21 :2; 29:14            counsel 95:20; 97:6
   character 91 :11                 collection 39:8                  concern 60:7; 82:6              counselor 97:5
   charg 9:23; 22:5                 collective 28:10                 concerned 49:14                 counterfeit 72:12
   charged 8:15; 25:9               collects 61 :24                  concerning 92:6                 countries 34:9; 99:6
   charfti s 49:21                  college 10:4; 17:20; 26:7;       concert 4:5                     country 7:23; 8:11",,13;9:13;
   Chari ston 105:20                92:24                            conclude 113:20; 114:13;        11:16; 13:3; 14:4,1~,16;
   chart 91:1                       colleges 21 :10                  115:9,22                        16:21; 17:10,21; 22:7; 24:13;
   charter 8:21; 11:1; 15:15,16;    collegial 29:9                   concluding 2:7; 3:20            25:8,12; 29:1; 31 :14; 34:8;
   16:12; 20:21; 24:20; 39:8        colliding 41 :13                 conclusion 45:10                43:22; 89:19; 92:19; 93:12;
   ch aper 52:15,17; 60:13          Colorado 103:10                  conference 2:8; 77:24;          95:2; 108:1; 110:25; 112:20;
   ch ck 59:24                      comes 29:4; 72:15; 74:23;        101:17; 102:21; 115:3,20        114:23
   chef 13:6                        91:22                            conferences 103:2               country's 17:20
   ch mistry 18:12                  comfortable 29:13                confident 84:14                 counts 7:6
   Cheryl 101 :13                   coming 30:11; 40:18; 76:12;      conformity 38:23                county 110:7,13; 117:4,17
   chief 49:2                       102:20; 110:7                    confusing 65:23                 couple 26:13; 45:5; 49:9;
   chief-of-staff 100:14            commander-in-chiefs 111:9        congratulate 91 :25; 115:4      70:4; 74:5; 92:8,10; 97:19,22;
   child 5:8; 16:23; 18:5;          commemoration 98:25              congratulating 106:15           104:5; 112:22
   19:1,4,4,5,6,6,7,8; 20:6;        commence 3:20                    congratulations 3:10; 96:17;    course 18:12,13,13; 21:23;
   63:25; 74:1                      comments 41 :2; 58:25;           102:17                          32:4; 41:15; 49:17; 52:12;
   children 7:~ 13; 8:19; 9:3,17;   69:1; 74:18                      Congress 3:17; 34:7;            59:1; 60:6; 91:1; 96:4; 97:7;
   11:4,18; 15:~3; 16:7,14;         Commerce 38:5,9; 52:3;           36:9,18; 39:19,20; 40:15;       100:13
   17:3,6,9; 18:2,18,19; 21:3;      66:18                            42:3,19; 48:1,6,7; 95:23;       court 73:3
   24:22,24; 25:13; 34:22,24;       commercial 77:21; 83:3           104:11; 108:8; 110:14;          courtesy 99:14
   43:21; 44:15,21; 53:16;          Commission 101:5                 111 :13                         cover 59:8
   63:24; 85:18,20; 86:9;           commissioner 65:4; 110:8         congressional 2:24;             crack 106:22
   101 :21; 102:18; 109:6,14,16;    commissioners 110:13             36:10,13; 40:6,25               crafting 48:4
   114:10                           commitments 98:11                connect 66:5; 71 :18            crazy 100:1,2; 101 :11
   children' 3:7; 47:12,20;         committed 37:11; 112:12          connected 51:1117; 53:4;        create 7:7; 10:16; 16:14;
   48:2; 98:5                       Committee 3:12 12;               54:15; 55:7; 65:18; 66:11;      20:25; 21 :8,9; 22:16; 25:1;
   Chiles 93:22; 103:10             35:17,18,21,24; 36:12,17;        71 :10; 84:10                   34:12; 53:2; 68:6; 72:1,11
   China 49:24                      37:1,3,18; 38:5,8; 41 :9,10;     connecting 63:6; 113:1          created 9:14,16; 14:14;
   chips 52:9                       44:4,5,10; 46:18; 47:20;         connection 31:3                 18:21; 25:8,12; 69:6
   ch ice 16:22; 17:24; 49:18       48:21; 60:24; 61:1;              connections 55:9                creates 60:6; 72:1
   ch ices 8:19; 11 :6,6,9;         102:13,14,19; 103:6,15,16        connectivity 54:9               creating 11 :3; 12:11; 73:14;
   16:18; 17:11,12,15; 20:13,22;    committees 35:11,14; 36:10       connivance 90:22                90:1
   102:3                            committing 85:6                  consequences 27:12              creative 89:25
   choose 15:23; 21:6               common 13:3; 61:10,14;           conservative 19:24              credibility 96:8
   ch sen 49:15                     97:10                            consider 35:20; 80:13           credit 47:5; 77:2
   Cincinnati 14:20; 24:22          communicate 71 :12               consideration 35:9              credits 26:8
   Citi s 109:23                    communicating 50:12              considered 35:10; 38:17,18      crime 19:13; 44:16,21;
   citiz n 75:16; 76:14,17          communications 53:5              consistent 42:12; 67:3          57:21; 111:4
   citizens 50:14; 51 :16,18;       communities 24:17; 25:5          constantly 56:14; 69:10         criminal 45:24; 60:1; 88:22
   57:20; 63:2,8; 72:20; 76:21;     community 20:8; 34:10,10;        constituents 60:20; 104:15      critical 60:2; 66:12; 110:24
   84:11; 106:10; 114:22            68:3; 75:3                       constitutes 117:13              cross 93:13
   City 15:16; 17:17; 24:20;        community-type 52:2              constructively 90:12            crossed 90:4
   106:1                            companies 4:21; 18:24;           consumer 64:14,21               CSR 117:23
   civil 20:1                       22:12; 29:5; 54:11; 55:11;       contention 37:4                 cuff 99:2,6,13
   claims 49:25                     75:19; 77:2                      continue 47:14; 66:24;          curious 70:8,19
   clarifying 39:4                  company 5:7,8; 18:24;            90:7,8; 91:10; 108:22;          currency 74:13
   CLAitK 117:4,17                  55:24; 99:15                     110:17                          current 74:8
   class 16:4                       compete 92:12; 93:10             continued 30:17                 curriculum 29:24
   classes 17:20                    competition 22:13; 36:6;         continuing 48:14                customer 55:14,15
   classro m 15:13; 28:22;          38:15; 93:9,19; 95:5             contractors 62:3                cut 17:16
   29:4,7,9; 87:13,17               competitions 93:11               contributing 106:8              cycle 83:4,6; 84:22; 85:12
   classrooms 10:24; 13:22;         competitive 66:14                contribution 105:3
   17:2,5; 85:20                    competitiveness 43:21            control 10:24; 15:13; 29:23;    D
   CI an 36:24                      competitor 55:17                 33:21,24; 66:25; 74:8,18;
   clear 41:10; 53:19               complaining 113:5                93:14                           dad 49:17
   clearingh use 34:13              complete 47:19                   convention 115:14               Dads 74:2,3
   CI veland 8:18; 17:13;           completed 44:11; 92:24           convinced 27:18                 Dakota 34:24
   114:16                           completely 74:20                 cooking 13:6                    damn 82:7
   click 56:11; 58:24; 59:2;        completes 48:21                  coo~ration 68:20; 106:16;       dancer 114:2
   62:17                            complex 59:8                     107:21                          Dancers 114:3
   cli nts 5:10                     complexity 50:18                 coordinated 79:21               dancing 100:2; 115:17
   Clint n 6:8",,15;9:18; 11 :20;   comply 36:24                     coordinating 95:21              danger 67:22
   21:13; 110:~                     component 27:6                   coordination 45:19              dangerous 58:19
   cl se 68:19                      components 26:6                  coordinator 95:25; 101 :14      dangers 67:17
   cl sely 66:21; 97:23; 110:4      comprehensive 77:19              copies 49:24                    data 39:8; 83:12
_CLOSrNG        1:10; 2:10; 91:6    comp-uter 49:3; 51 :16;          c r 27:2; 29:18                 databases 52:21; 80:8,10
~I     sure 39:9                    52:9,20,23; 53:2; 54:12; 56:7;   Corine 101 :22                  date 53:19
   closur s 39:11                   60:11; 65:6,7,16,18; 68:13;      corporat 5:10; 79:5; 106:9      David 103:12
   CNN 75:23                        69:13; 70:10,17,23; 71:1;        Corporati n 49:2; 70:13         day 3:20; 9:19; 16:3; 20:3;
   co-equal 37:5                    75:15; 77:11; 82:17; 85:19;      corporation     80:8            48:25; 73:23; 86:9,10; 87:2;


   LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                      Index 3
   CLOSING PLENARY SESSION                                                                    WEDNESDAY, JULY 30, 1997

    99:25; 117:18                  Dick 12:13                       door 23:4                       Elaine 98:8; 100:23; 106:3,8
    days 16:3; 32:25; 92:10        didn't 23:25; 64:23; 82:20;      d ubt 75:7; 76:13               el cted 4:17; 43:9; 88:17
    DC 96:1                        104:23; 106:7; 113:7             d wn 9:14; 11:25; 21:18;         lectric 36:1
    Deadbeat 74:2,3                diff rence 6:23; 7:1;            22:2; 28:22; 40:19; 50:15;      electricity 36:15
    deadline 36:21                 12:12,12,21; 17:17; 51:8;        52:25; 63:13; 65:6; 66:3;        lectr nic 51:24; 52:3;
    d al 3:24; 4:10; 50:19;        85:16; 114:22                    68:12; 70:8; 77:15; 80:20;      54:19,22; 55:8,9; 56:4; 57:5;
    75:11; 100:17; 109:24; 110:5   differences 67:19                86:10; 96:24; 104:24; 117:7     58:4; 59:2; 60:20; 62:14;
    deal r 54:25                   different 15:18; 50:9,16;        downtown 15:19                  65:19; 66:18; 71:7,7,13; 72:9;
    d aling 51:6; 80:6; 112:11     53:3; 56:1; 59:18; 61:23;        drafts 38:21                    80:13,22
    d alt 45:17                    62:5; 63:22; 64:20; 67:5;        drag 11:24                      electronically 56:9; 57:18;
    Dean 92:23; 103:13             74:20; 80:1; 82:17; 86:3,5;      dragging 9:20,21; 11:21         64:17; 73:4; 74:14; 76:5
    debate 7:6; 21:18              91:2                             dramatically 66:3; 80:4;        element 66:14
    d bates 59:12                  difficult 65:20; 67:11; 72:11;   82:24; 109:8                    elementary 21:4
    d bt 85:7                      74:13,15; 76:15; 110:16;         Draper 14:20; 24:21             eligible 28:4
    d cade 18:17; 53:20; 68:23     115:16                           draw 55:17; 59:6                eliminate 43:5,16; 58:5,5
    decad s 3:5                    difficulties 65:12               drawing 57:20                   else 4:3; 13:25; 52:11; 60:25
    d cency 91:11                  dlgSflng 83:14                   drills 86:16                    embarrass 34:16
    d cided 26:13,18; 27:17;       digital 50:11; 51:10; 66:19;     Drinking 108:23                 emphasis 86:8
    59:16; 68:2                    72:9,14; 84:8                    drive 61:3; 101:11              emphasize 12:22; 37:4;
    deciding 66:7,17; 67:24        diligence 98:10                  driven 26:5; 109:8              11f:12
    decision 35:2; 43:18;          direct 7:18                      driver 74:21                    emphasizes 12:23
    66:23,23                       directed 58:8                    driver's 64:16; 77:3            employee 71:1
    decisi nmaklng 80:25           direction 33:25; 98:2;           driver. 57:23                   employees 50:21; 70:15,21;
    d duct 61:17                   117:12                           driving 10:5; 75:5              79:23; 80:13
    deep 4:9                       Directions 37:8                  drop 49:15                      employment 63:2
    defeated 109:7                 directness 88:2                  dropping 17:3                   employs 49:7
    d fend r 96:13                 director 47:9; 95:19,20;         drugs 19:11                     enable 45:2; 51:23
    d fer 3:25                     97:2; 101:1                      duplicate 93:6                  Enabling 66:19
    deficit 111:3                  directors 32:17                  during 5:25; 14:11; 86:2;       enacted 36:6
    d fine 48:9                    disagree 43:14                   96:4,"rn; 97:3; 104:6,20;       encourage 31:10; 94:23
    defining 12:20                 disappointed 48:11; 76:8         110:1                           encryption 72:16,16,20
    degree 15:2                    disarmament 7:20                 duster 6:25                     end 10:22; 13:20; 17:7; 25:7;
    degrees 26:9                   disaster 39:1                    dusters 24:2                    31:22; 69:1; 76:16; 91:22;
    Delaware 29:5; 33:4; 44:25;    diSCOVery 73:16                  duties 37:6                     115:19
    103:9                          discuss 108:4                                                    endeavor 26:17
    d legatl ns 2:25               discussed 38:11; 90:3;           E                               endeavors 91:9
    d liberati ns 36:14; 66:21     110:19                                                           ending 20:19
    deliberative 91:23             discussing 49:12                 earlier 39:19                   endorsed 33:11
    d liver 35:6                   discussion 34:3; 37:23;          early 22:10                     engaged 7:19
    dem cracy 59:15                38:16; 41:5; 43:2,24; 44:13;     earn 26:9,12; 28:9; 46:4        engineering 94:9
    Dem crat 108:6                 45:10; 46:23; 48:16; 58:21;      easier 32:11; 57:5; 62:20;      Engler 70:4,6; 85:3;
    Dem cratlc 51:22               103:21; 113:16                   84:5                            91:15,16
    Democrats 115:10               Disney 93:20,21                  easily 51:19; 55:14; 56:7;      English 12:3A19A19;14:21;
    Denmark 72:25                  disproportionately 29:2          57:1f; 63:12; 64:20             16:23; 17:4; 1j6:~1
    De~artment 12:10; 21:20;       distinction 88:14                East 10:7                       enhance 73:16
    79:6                           distinguished 2:6; 3:21;         easy 42:12; 51:15; 57:21;       enhanced 74:4; 107:18
    d partments 31:11; 52:21       22:7,8                           58:f4; 59:1; 60:22; 63:18;      enloy 2:13; 99:16
    depend ncy 46:7                districts 67:20                  71:17; 72:8; 76:6; 77:10        en oyable 102:20,23; 106:13
    dependent 90:25                ditches 83:14                    echo 106:7,14                   en oyed 2:15; 89:21; 90:5;
    der gulate 36:21,22            dive 59:9; 79:25                 Economic 38:5,8,25              91:17; 100:4; 104:5
    deregulatl n 36:3,5            diverse 74:6; 102:1              econom}! 9:14; 25:8; 53:22;     enough 16:10,12; 41:17;
    describe 44:11                 division 94:2                    69:4; 92:12; 106:8              84:17
    describes 64:7; 94:18          documents 53:2; 72:1,5,21        Ed 34:2                         enter 58:14; 62:6
    d scription 4:6; 62:13         does 7:12; 15:21; 19:13;         EDC-2141:7                      Enterprise 45:9
    descrlpti ns 58:8              20:12; 41:19; 55:17; 61:7;       Edison 22:4                     entertain 53:10
    Des rt 86:1                    70:11; 80:10; 84:12; 101:8       educate 53:10                   entertainment 53:14; 74:21;
    d slgnat 56:17                 doesn't 34:4; 75:2               education 4:11,15;              75:2,19; 101:4; 105:15,16
    Designing 84:8                 dOing 14:18; 15:10; 18:3;        5:5,9,24,25; 8:11,15;           enthused 84:1
    d sk 55:6; 65:17; 70:22;       20:2Z; 23:23; 27:7; 31:15;       12:10,13; 21:5; 24:15; 25:18;   entire 4:12; 69:21; 97:2;
    71:15                          32:18; 38:12; 44:14; 46:5,8;     26:6; 27:10; 30:13; 31:11;      103:3
    d sk-related 70:22             58:3; 59:4; 63:1,5;              33:10; 34:5,18; 43:20; 45:7;    entirely 28:19; 48:8
    detail 79:25                   77:17,22,25; 78:3; 85:6;         49:21; 53:12; 64:2; 66:15;      entitled 37:7
    details 45:16; 97:9            89:16,25; 104:25; 107:23;        67:14; 74:24; 85:14; 88:23;     entity 74:10
    d ter 44:21                    111:25                           90:14; 92:11,13; 111:4;         entrepreneur 92:23
    determine 77:16                dollar 20:5                      112:9                           entrepreneurs 9:25
    d t rmlning 66:14              dollars 14:22; 28:20; 74:23;     educational 86:7; 98:11         environment 37:7,11
    d velop 27:1                   82:5                             educators 30:22                 Environmental 37:9,13
    devel ped 84:25                Don 18:22                        effect 87:25                    Envy 86:1
    devel ping 27:3; 42:11         donated 49:20                    effective 40:5; 48:2; 97:6      Epcott 93:20
    Development 38:5,8,11,25;      done 3:18; 8:25; 9:1; 10:14;     efficiencies 69:4,8             epHomized 25:17
    49:6; 74:22                    19:22; 21:9; 23:25; 29:11;       efficiency 51:7; 57:8; 61:4;    equal 68:6
    d vel pments 58:13             30:17; 41:9; 43:8; 46:11;        71:14; 110:21                   equipment 83:11; 84:12,13
    device 86:25                   50:16; 56:12; 57:8,11,18;        efficient 23:9; 50:13; 57:6     equivalents 56:4
    d v t 67:24                    58:14; 59:22; 60:9,14,19;        efflcl ntly 37:16                specially 3:11; 13:23;
~v        t d 4:13; 8:1            67:2,3; 68:17,23; 70:21;         eff rt 14:9; 60:15; 73:19;      25:19; 46:6,8; 98:22; 100:25;
~ia      94:15; 95:9               73:2,24; 75:1; 78:10,13; 87:4;   109:11                          102:23
    diabetics 93:1                 96:21; 98:5; 100:25; 101:5;       ff rts 10:2; 36:24; 100:20     ESPN 75:21
    dial 58:12                     106:23; 108:3,25; 109:11,19;      Ight 98:12; 111:21              ssential 90:16
    dialogu 78:8; 85:15            110:6; 112:18; 115:11,13          Ith r 14:1; 65:7; 83:4          ssentlally 48:3; 88:9


  LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                     Index 4
   CLOSING PLENARY SESSION                                                                      WEDNESDAY, JULY 30, 1997

    established 39:24               53:11; 60:2; 64:19,25; 65:25;      109:3,22; 115:4                 55:5
     state 58:2                     73:15; 75:14; 77:11; 99:2,4;      fit 18:22                        futur 24:6,9; 39:10; 48:25;
    Eur pean 34:9                    104:6,11; 106:7                  fitting 89:13                    57:17; 75:5; 87:24,25; 89:6;
    evaluated 32:1                  fail 107:23                       five 8:10; 29:17; 38:20; 40:8;   90:22,23; 91 :8; 92:2; 103:2;
    evaluation 28:18                fair 17:21; 56:10; 58:2;          44:19; 45:12; 46:19; 85:10       110:25
    Evelyn 98:8                     109:24                            five-year 8:3                    future-pro f 83:16
    event 113:15; 114:1             fairly 53:19; 56:13; 72:8         Five-Vear-Tlme 4:14
     vents 105:21                   false 72:5                        fix 39:13                        G
     ventually 71 :16               Fame 105:23                       flexibility 37:15; 109:3
     veryb dy 2:2; 55:14; 62:22;    Families 5:18; 17:24,25;          flights 39:9                     Gamble 94:4
    69:18; 71 :18; 82:18; 84:10;    18:1,3,11,17,21; 19:10;           floor 15:19; 99:8                game 93:12
    99:1                            20:12,22; 49:13; 102:4,16,24;     Florida 19:1; 63:1; 103:11       games 93:18
    everyday 84:2                    111:5                            flourish 67:9                    gang 45:17,22
     very n 4:3; 67:16; 73:8        family 4:24; 5:9; 6:21;           flow 79:17; 81:8                 Ganz 98:8
    ev ryon 's 43:19                16:21,21; 18:9; 19:13;            FLSA 112:24                      gap 68:19
     verything 114:7                34:11,11; 89:2; 91 :25;           flunked 101 :25                  Gates 49:1,25; 50:3,4;
    ev lutl nary 82:25              101:24; 102:21; 103:3;            flurry 23:20                     70:2,20; 72:4; 75:6; 77:21;
     v Ive 110:23                    104:16; 115:24                   focus 4:15                       78:20; 79:15; 82:20,22;
     xacerbating 42:16              family-friendly 11 :7,10;         focused 44:17,20,22              83:20; 85:8; 86:13; 92:15,24
    exactly 54:25                   16:18; 18:16,2"4                  folks 45:5; 70:9; 108:24         gathered 99:9
     xampl 12:22; 15:17;            fantastic 98:15                   follow 108:2                     gave 18:7; 31 :8; 33:10;
    18:15; 51 :13; 57:20; 58:18;    far 42:1; 50:19; 54:14; 72:11     followed 47:25; 48:7; 66:21      f07:2
    59:23; 60:18; 62:19,24; 73:2    farm 40:3                         following 26:14                  gavel 105:4
    example 59:16; 86:12            fascinating 50:22; 59:17;         fondest 102:6                    gees 60:14
     xceedlng 27:23                 70:1                              food 64:24                       General 22:12,15; 23:23;
    excellent 31:1                  fashion 67:3                      football 93:14                   61:12; 94:2
    except 8:24; 35:19              fast 82:7; 111 :21                footsteps 98:17                  generations 82:13
     xceptl n 48:8                  faster 52:13; 56:21; 60:13;        Force 38:11                     gentleman 49:12
    exceptionally 2:17              72:25; 83:1                       forced 36:22                     gentlemen 2:10
     xchang 54:19                   fastest 4:23                      Forces 3:13; 68:16               genuinely 11:3
    exchanging 60:20,21             favor 37:24; 43:25; 46:25;        Fordice 49:10                    George 6:12; 14:12; 34:3;
    exclt d 50:2; 92:13; 93:3,5;    48:18; 103:22                     forefront 34:6                   78:22; 81:16; 88:5,12; 89:2;
    94:6; 95:9                      feather 6:25; 24:2                forepoing 117:12                 91 :18; 98:21; 103:8
     xclting 50:7; 93:23            February 44:13,17; 111:1          foreign 22:14                    Germany 10:4
     xcuse 60:16                    federal 2:22; 3:5; 6:3;           foreign-made 10:5                Gerringer 73:11,13
    executive 3:12; 35:14;          20:17,24; 21 :4,7; 24:25; 34:5;   form 55:20                       gets 12:20; 14:21; 15:20;
    47:20; 49:2; 95:20; 97:2;       37:5,8,12,14; 39:8;               former 5:11,14; 21 :12;          60:13
    102:14; 103:6,16                45:20,21,23; 56:25; 57:14;        28:12; 32:7; 34:2                getting 30:15; 60:3; 66:20;
    ex mplary 115:21                72:19; 110:22; 111:7              forms 51 :4; 55:22,25;           71 :21 ;74:17; 75:9; 80:21;
    exemplifY 85:23                 Federalism 37:8; 109:23           56:3,23; 57:5,9; 70:8; 88:22     83:22; 87:17; 92:13; 111 :19
    ex mpt 109:25                   federalizing 45:23,24             forth 32:2                       gift 89:8; 99:2; 100:10;
     xisting 45:15; 46:21           Federation 23:17                  fortunate 47:18; 99:23           f01:9
    expanded 63:17                  fee 32:20; 61 :24                 forward 42:20; 48:24; 65:8;      Gilocka 47:13; 98:6
     xpandlng 109:5                 feeding 89:14                     69:21; 88:6; 107:9; 112:2;       gives 13:7; 14:15
     xpect 19:19; 27:2              feel 6:9; 84:13; 85:12             113:12                          giving 8:19; 16:17; 20:20,22;
     xpedlte 35:17                  feels 29:13                       found 5:8; 8:20; 28:16;          56:1T
    expense 84:3,7                  feet 9:20,21; 11 :22,24           62:24                            glad 4:7
     xpensive 52:22; 83:7,13,20;    few 18:1; 32:25; 59:16; 70:2;     foundation 46:15                 Gladiators 93:15
    87:15                           73:20; 77:8; 80:23; 87:5;         Four 39:2; 50:21; 73:9           Gladys 102:10
     x~rience 55:19; 84:3;          98:18                             four-year 4:17; 83:4,6; 84:21    glimpse 87:24
    90:6; 99:21; 100:5              fiber 83:10,10,15,16              four-years 85:1                  global 67:4; 92:12
     xperienced 114:9               field 53:14                       fourth 4:19; 19:5                goal 29:17; 94:6
    experiment 16:11                fields 94:9                       frame 62:9                       Goals 8:4,6; 9:10; 40:20;
    experimentation 68:22           fight 2:21                        Frankly 43:12                    46:13; 91 :3; 109:2; 110:20;
    experiments 68:8                figure 6:16; 22:17; 27:11;        fraudulent 72:11                 111 :14,17
    expertise 95:4                  55:21                             free 11:1; 15:22; 16:12          God 107:2; 114:18
     xplained 6:23                  figured 10:10,13; 24:1; 96:3      freedom 8:14; 41 :15; 111:8      God's 114:20
     xploded 73:21                  figures 75:20                     frequently 49:12                 going 10:4; 11:25; 30:1,5,25;
     xpl it 73:15                   flOng 57:8                        fresh 22:20                      32:6; 33:6,8; 35:8; 44:15;
     xplorlng 36:4,11               filings 73:3                      freshest 22:23                   45:15; 55:22; 58:3; 59:19;
     xp nentlal 52:10               filled 96:17                      freshman 17:20                   61 :1,10,23; 62:19,20;
     xp rts 111:4                   finally 3:6; 52:2; 64:21          friend 4:7; 5:11; 65:8;          67:17,18; 68:8,20,21;
    extend 8:14                     finance 3:7                       100:25; 115:22                   69:4,10; 73:3; 75:8,15,18;
     xt nslve 38:16                 financial 28:5; 38:24; 106:22     friends 53:17; 54:19; 75:11      77:9; 79:21; 80:2;
    extent 26:7,10,20               financing 109:25                  friendship 90:5                  82:16,17,19; 84:11,14; 87:15;
     xtra 2:21; 20:3,8; 26:22;      find 13:8,12; 17:3,5; 19:18;      front 53:16; 59:8; 78:13;        92:16; 98:16; 99:1; 100:9;
    33:6,6,8                        34:14,15; 54:24; 61 :21 ;         111 :18                          102:25; 103:2; 104:22;
    extra rdinary 113:25            62:20; 64:15; 86:22; 111 :24      frosting 114:8,8                 105:17,18; 106:19;
     xtravaganza 105:22             finding 57:23                     fuel 39:23                       110:14,17; 111:14,17;
     xtremely 115:15                finds 62:7                        full 62:13; 117:13               112:5,6; 113:3,10,11,15,24;
    eye-catching 99:11              fine 30:12                        fully 37:10; 62:18; 71:21        115:15
     yes 80:23                      finest 14:3                       fun 50:24; 64:9; 75:10           gold 99:4,5,7,12,14,15,17,18
                                    first 3:16; 4:16; 5:15,18;        function 18:9                    gone 14:24
     F                              7:4,4; 11:19; 16:1; 18:8;         fund 26:18; 40:18,23             Good 2:9,9; 4:18; 8:24;
                                    30:11; 32:19; 44:12; 49:9;        fundam ntal 53:8                 10:10,22; 12:7; 13:2,23,25;
_abrlcating       72:7              71 :6; 74:7; 78:24; 80:14,15;     funded 61 :25                    14:11,16,22,25; 25:25; 26:3;
     facilitl s 66:11               81 :18; 85:24; 92:20,20;          funds 39:14                      30:7; 31 :14; 34:17; 45:3;
     facing 38:14; 89:25; 90:1      94:3,14,18; 95:3; 96:10;          funny 109:19                     46:6,9; 50:4; 66:23; 70:20;
     fact 33:25; 40:14,17; 43:13;   97:24; 98:9; 107:18;              further 26:8; 37:23; 43:1,23;    72:14; 78:15; 85:12; 86:13;


   LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Me~e                                                                         Ind x 5
   CLOSING PLENARY SESSION                                                                          WEDNESDAY, JULY 30, 1997

       96:7; 98:20; 99:22; 101 :11;     gr ups 40:4                      82:3; 86:2,4,4; 89:19            90:12; 107:24
       106:25; 109:16                   Grov 53:15                       higher 88:23                     impatience 11 :23
       G rbechev 21:17                  gr wing 4:24                     highly 113:17                    impede 36:24
       G rdon 52:6                      grown 55:23                      highway 40:7                     Implement 37:12,15
       g tten 10:6,8; 36:8; 68:9        gr wth 43:11                     Hirl 15:16; 24:20                impl mentation 29:23
       g vernm nt 3:4; 6:3; 11 :2;      guarantee 96:21                  Hist rically 26:4,11             Imply 41:19
       f6:13; 20:24; 21 :4,8; 24:25;    guaranteed 13:24                 history 28:14; 50:1; 60:1;       Importance 90:8; 92:10
       34:20; 37:14; 40:4; 45:20,21;    guard 36:22; 90:17,17;           86:20                            important 2:18; 6:4; 8:12;
       50:13,17; 51 :6; 56:25,25;       fll:l0                           hit 112:8; 114:12                12:25; 36:13; 37:6; 38:14;
       57:4,7,14,15,19; 63:8,13,15;     guest 3:21,24,25                 hold 65:15                       43:20; 47:6; 48:8; 66:19;
       69:8,23; 70:16; 71 :22;          guidance 97:11                   holding 58:6                     67:9,13; 88:4; 101 :20;
       74:9,24; 75:13; 76:13,25;        guide 36:13; 65:5                Hollingsworth 98:22              106:11; 108:9; 109:10; 112:4
       79:22; 80:6; 84:10; 91 :5;       guided 48:3                      home 6:11; 18:18,20; 19:17;      importantly 94:24
       96:12; 108:1; 109:9;             guy 115:23                       24:16; 25:4; 29:2; 33:13;        impose 42:7
       110:4,9,21; 111 :6,7             guys 77:25                       54:4; 63:7; 73:17; 82:2; 87:8    imposed 43:14
       g vernm nts 6:4; 72:23;                                           home-schooled 18:1,6             imposing 36:21; 42:15
       76:19; 80:7                      H                                home-schooling 17:25;            impressed 70:7
       GOVERNOR 2:1; 3:16,23;                                            18:11                            impressive 15:25
       4:2,16; 5:14,15,16,18;           half 17:16; 21 :24; 44:12,12;    homes 54:14,15; 67:19            improve 4:13; 8:2; 9:1; 31 :7;
       6:11,12,14,22; 7:5,15,15,15;     54:14,15; 82:5; 98:12; 115:3     Honeywell 94:4                   110:10
       13:11; 14:25; 19:24; 21:1,13;    halfway 10:6                     honor 104:25; 114:23; 115:5      improved 39:18
       24:6,7;                          hall 86:10; 105:23               honored 14:10; 113:18            improvement 41 :10,16;
       25:2,3,16,16,21,22,24,24;        hammered 109:4                   hook 82:1                        52:10
       26:14; 28:12; 30:6,8,8,9,9;      Hammond 93:25                    ho~ 2:13; 6:6; 21 :2;            improving 10:3; 31 :5; 65:17;
       32:7,9,13,15,15,15,16;           Hampshire 92:16                  24:5,10; 25:2; 31:4; 33:12;      69:11; 90:15; 107:25
       33:15,16,19; 34:2;               hand 7:22; 117:16                34:22; 42:21; 81 :15;            in-depth 75:20
       35:4,22,23; 37:20,22;            handbook 64:19                   91 :9,16,20; 94:22; 99:16;       incentives 66:8
       38:2,6,7,10,10; 41 :4,5,6,9;     handbooks 64:18                  102:3                            Include 27:5; 39:8; 45:7;
       43:1,2,3,4,9,23; 44:2,6,7;       handful 34:19                    hoped 94:11                      63:17
      46:18,22,23; 47:2,4,17,22,23;     handled 104:21                   hopefully 59:14; 100:3;          including 31 :25; 32:1; 33:2;
       48:15,20; 50:5,5; 69:25;         hands 86:8                       113:1                            40:18; 105:21
       70:4,4,6; 71 :20;                hands-on 103:3                   hoping 106:24                    incomes 4:24
       73:7,11,11,12,12,13;             hap~n 15:11; 24:9; 59:10;        hospitality 5:23; 101 :7;        incorporate 12:6
       77:13,13,14; 78:14,21,24,25;     65:13; 80:2                      105:13; 113:21                   increase 40:16; 67:19;
       81:11,11,12; 83:18; 85:3,13;     happened 24:8,12; 31:20          host 101:15; 102:19; 103:2       110:20
       87:22; 88:1,5,12,18;             happening 12:9; 31 :19           hour 20:5                        increasing 39:23; 45:18
       89:9,9,18,20; 90:9,10;           happens 17:14; 82:8              hours 2:21; 16:2; 20:9           incredible 47:18; 50:8;
       91:15,15,16,17,21; 92:3,4,5,7;   hard 15:14; 17:8; 24:3;          House 21 :19; 39:20;             59:21; 65:17; 106:5
       93:22; 95:12; 96:20; 98:3,18;    31 :12; 47:11,14; 59:8; 96:21;   40:10,11; 48:7; 88:17; 95:22;    incredibly 68:17
       100:13; 102:9,12,14,15;          97:18; 98:6; 99:25               104:11                           indeed 47:17; 105:15
       103:7,8,9,10,11,11,12,13,14,1    harder 15:1; 42:13               households 54:17                 Indiana 93:25
       104:3; 105:5,10,12; 112:10;      hardly 54:1; 70:24               Howard 103:13                    indicated 73:9; 117:10
       115:2; 116:1                     hardware 84:6                    however 30:10; 74:7; 82:6        individual 53:1
       g vern r's 5:2                   Harvard 49:15                    huge 62:22                       individually 30:7; 35:20
       g vern rs 2:4,9,18,20,23;        hasn't 19:25; 72:18              Human 44:6,10; 47:9; 50:1;       IndMduals 97:19
       3:9,11,18; 6:7,19; 7:16,23;      hate 83:21                       83:22                            induction 105:23
       9:20,21,22; 10:20; 11 :21 ;      haven't 20:6; 61 :16             hundred 22:17; 87:5              indulge 115:3
       12:17,18; 14:13; 15:7; 18:14;    Hawaii 44:24                     Hunt 7:16; 14:12; 26:15;         industry 36:1,4,23; 38:13",24;
       20:17; 22:22; 23:21; 24:11;      Halcock 45:7                     30:8,9; 32:9                     54:12; 65:21,25; 69:21; 70:7
       25:4; 31 :4,13; 32:18; 33:12;    hed 114:4                                                         Inexpensive 81:4
       34:15; 35:12; 36:13; 37:4,14;    headed 90:10                                                      infancy 67:7
      41:19,20; 42:22; 44:24; 45:2;     heads 79:6                                                        informal 113:16
      47:6; 81 :22; 88:8; 90:8,25;      heaHh 3:8; 47:21; 48:2;          I'll 47:24; 61 :21 ,21; 73:8;    information 45:19;
       96:4,9,13,16,18; 102:16;         98:6; 109:5,14                   74:6; 89:6                       51:2,6,14,19,25; 52:24;
       103:1; 107:12; 108:6,14;         hear 38:4; 48:16; 114:14         I've 6:20; 27:10; 34:6; 50:10;   53:7,7,18; 55:2,13; 58:9;
       109:2; 110:13                    heard 23:17; 38:13; 44:23;       62:4; 65:16; 68:9; 70:6; 85:4;   59:11; 60:5; 61 :5,8,18;
      GOVERNORS' 1:6; 2:12;             92:9; 98:3                       97:22; 98:12,20; 102:20;         63:2,8; 64:10,20; 65:10;
      9:9; 10:15; 13:7; 24:6,10;        Hearing 37:22; 48:24             111:8; 112:14                    68:19; 69:2,16; 70:1; 71:5;
       34:12; 39:17; 89:1,4; 95:22;     hearings 61:2                    IBM 29:4                         72:17; 75:20,24; 76:3,18;
      96:1; 102:21; 103:7,17; 105:7     heart 91:19                      ID 76:21                         77:6,8; 79:17,19,25;
      grade 19:5; 44:23; 82:3           hearts 88:13                     ID's 77:4                        80:6,11,12,18; 81 :2,8
      graduate 15:2; 107:5              Held 1:93; 93:21; 112:20         idea 11 :24; 13:2; 20:16;        informative 87:23; 88:25
      graduates 26:7; 107:7             help 4:25; 8:19; 10:16;          26:15; 27:25; 34:23; 41:14;      informed 51 :21; 62:1
      Grand 105:19                      18:14; 19:2; 20:13,17,24;        52:2,7; 54:2; 78:15; 79:15;      infrastructure 80:22
      grandfath ring 42:15              21:8,9; 22:23; 26:15,18;         81 :16; 89:17; 93:3,8            inhibH 42:25
      grant 17:22; 34:22                27:11; 31:1; 47:12; 79:14;       ideal 84:22; 87:18               Initiative 10:20; 26:18;
      granted 55:3; 109:3               98:17; 107:14; 113:9; 114:20     Ideas 41 :12; 44:17,20; 45:3;    34:12; 98:9; 112:3
      grat ful 100:19; 107:20           helped 4:23; 5:8; 9:14;          54:12; 80:17                     Initiatives 3:2; 111 :25
      Graves 70:5; 71 :20               18:23; 24:25; 33:11; 99:20;      identify 46:14                   inner 17:17
      great 3:23; 4:10; 5:22; 6:10;     101:3                            illuminating 45:1                innovation 67:9; 81 :20
      21 :18; 52:16; 57:3; 59:4;        helpful 43:11; 45:2; 67:13;      images 69:17                     innovative 8:17; 59:19; 68:8;
      65:9; 66:12; 67:14; 78:20;        108:16; 112:21; 113:8            imagine 15:14; 17:8; 70:3;       90:1
      90:11; 91:23; 97:22; 98:7,18;     helping 101 :20                  73:T                             inside 55:20; 98:14
       100:5,17; 102:25;                helps 18:24; 97:9                imm diately 60:10; 67:15;        insight 88:2
_~06:9,16,17;         107:22; 110:5;    h re's 16:20; 31 :18; 61:7       71:2                             insist 31:10
.,14:4                                  hereby 117:7                     immerses 16:23                   insisted 31 :24
      gr ss 8:10                        h reunt 117:15                   immigrant 16:21                  in pecti n 64:24
      grounds 70:9                      high 9:6,8; 33:9; 46:1215'       immigrati n 3:7                  Insplrati n 92:21
      gr up 40:2; 97:17; 114:2          66:9; 68:24; 71 :9,16; 76:20;    impact 3:4; 39:18; 53:13;        instead 79:20; 94:14


   LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                          Ind x 6
CLOSING PLENARY SESSION                                                                      WEDNESDAY, JULY 30, 1997

 in truct 6:19                    Jacks nville 19:3                larg st 4:20; 19:15; 23:11;     likes 53:15
 Instructive 60:19                Janet 6:1; 105:18,25;            93:21; 99:15                    limit 73:9
 Insulin 93:1                     113:14; 115:4                    Las 1:15,86; 89:12,20           limit d 28:25
 Insurance 57:9; 65:4,5           Jankl w 7:15                     last 2:14; 3:2; 4:5; 9:19;      line 33:18; 58:5; 88:1
 Insure 36:18; 110:21             Japan 10:5                       10:3; 21 :15; 33:16; 39:12;     links 99:3,7,13
 insuring 92:11                   Japan se 4:20,22                 44:4; 46:4; 52:14; 85:14;       list 77:19; 97:15
 Intel 52:7; 53:15                Jealous 84:19                    86:2; 89:11; 92:10; 97:24;      listed 61 :22
 int IIIg nt 56:16                Jefferson's 88:15                100:22; 104:5,21; 105:22,24     literacy 68:1,5
 Int nded 29:1                    Jennifer 47:10; 98:4             late 2:3; 23:16; 95:24          literally 101 :22
 Int nslv 60:2                    Jewelry 99:12                    later 21:24; 107:13             Imle 2:3; 9:15; 19:25; 20:7;
 Int nt 39:4                      Jim 14:12; 33:15; 95:15)..17;    latest 54:2,7,7; 58:13          24:8; 34:3; 49:14; 50:23;
 Interact 75:16,17                96:3,8,14; 97:1; 109:19,<!1      laureate 7:23                   55:1; 72:18; 74:13,15; 76:8;
 interacting 53:17; 76:14         lob 13:24,25; 46:6,9; 50:23;     Laurie 1:117; 117:23            78:11; 79:3; 87:23; 98:25;
 int ractlve 49:25; 64:4,10       04:3,5; 57:12; 59:4; 60:3,13;    law 45:24; 52:8                 100:9,22; 107:3; 109:15;
 inter at 40:19; 43:19; 46:2;     63:14,16,22; 65:17; 67:14;       laws 37:13; 45:23; 66:18;       113:15
 47:23                            70:18; 71 :5; 78:21; 84:2;       72:13                           lives 5:6; 19:3; 44:21; 48:24;
 int r sted 51:18; 59:10;         88:20; 94:9; 96:6; 98:4;         Lawton 103:10                   90:12; 114:22
 63:9; 64:25; 65:9; 93:7          101:6,10,11; 106:3; 107:7,22;    lead 18:14; 26:14; 31 :4;       living 10:7; 54:17; 106:11
 inter sting 38:9; 55:19;         109:16; 112:18; 115:11,13        38:10; 44:16; 114:2; 115:5      load 28:2
 62:2,25; 64:13; 76:2; 77:23;     lobs 50:22; 57:17; 59:24;        leader 23:17; 49:3; 72:23;      lobbied 108:6
 78:2; 95:13; 108:11; 110:1;      83:15,17; 69:6,7; 70:22;         88:19; 98:18                    lobby 107:16
 111:1; 112:7                     71 :15; 90:14                    leaders 2:25; 15:8; 24:19;      locar 6:4; 27:8;
 interests 86:23; 97:10,11          oin 4:3; 5:10                  108:14                          33:20,21,23,24; 34:13,16;
 Interim 45:12; 46:19; 47:25
 international 13:9,14;
                                  loint 58:11
                                  July 1:35; 105:9
                                                                   leadershi., 5:24; 30:13;
                                                                   31 :8; 33:10; 34:18; 66:10;
                                                                                                   40:4; 110:4,9; 111:6
                                                                                                   localities 41 :24; 42:7
 34:14,15; 112:14                  ump 107:15                      78:4; 91:12; 105:6; 115:21      locally 10:19
 Internet 9:14; 19:18; 25:8;       unk 85:7                        leading 9:22                    location 55:16; 64:17
 41 :8,22,22; 42:8,23; 43:6;       urlsdlctlons 45:25              League 109:23                   locations 101 :23
 51:12,17,24; 52:1; 53:17,25;      ustlce 88:22                    learn 56:15; 64:10; 67:1;       Locke 50:5; 73:12; 78:24,25
 54:10,16,17,24; 55:8; 58:12;      ustlfy 110:22                   68:16; 85:18,21; 86:10;         logistics 101:3
 59:17; 60:9; 61 :7; 63:6;                                         89:24,24                        long 14:23; 29:15)..18; 32:21;
 65:19; 67:1,4,7; 73:23; 74:11;   K                                learning 17:18,19; 24:23;       42:f3; 68:2; 83:9,<!5; 86:9;
 75:9,21; 76:1,10; 77:23; 78:4;                                    53:18; 67:8; 86:19; 90:5        87:1,3,9; 109:13
 85:23; 86:22                     Kamen 92:23                      least 5:19; 75:16; 89:4         long-term 110:24
 Internet. 41 :20                 Katie 45:7                       leave 30:22; 67:21; 99:18;      longer 16:4; 42:6
 Internets 84:8                   keep 11 :2; 13:3; 17:7; 28:21;   105:17; 113:24                  longevity 96:2
 Interrupted 91 :21               34:7; 90:18; 96:6; 104:22;       leaving 88:12,13                longtime 100:25
 interatat 43:10                  113:23                           Leavitt 47:22,23; 103:13        1001( 7:9,10; 17:20;
 Intran t 79:22                   keepers 70:9                     led 14:12                       24:19,21,22,24; 28:3; 50:16;
 Intr duce 3:25; 49:1             keeping 51 :3,4; 71 :24          left 5:2; 8:20; 24:9; 98:15;    53:2; 61 :2; 62:4; 63:5,12,23;
 Intr ducti n 3:22                keeps 77:18; 97:25; 98:1         107:12                          64:21; 66:16; 69:21; 71 :3;
 invent d 92:25                   kept 97:7; 100:8; 104:9          legal 71 :24; 73:1              78:3; 93:4; 94:24; 95:7;
 invent r 92:22                   key 46:14                        legislation 3:5; 36:11,19;      99:22; 107:9; 108:4
 Invent rs 9:25                   keyboard 69:15; 70:25            43:15; 46:3; 58:22; 61:1;       looked 24:13; 41 :23
 invest 82:9                      kids 8:19; 15:17; 17:18,19;      108:8,9                         looking 48:23; 58:2; 63:20;
 invested 82:11                   19:17,17; 27:2,6; 34:21;         legislative 95:22               113:12
 Inv atlgation 59:13              44:18; 54:20; 64:5; 86:22;       legislators 60:21; 110:14       Looks 62:8
 investing 81 :23; 82:5           92:13; 93:3,5; 94:6; 95:8;       legiSlature 43:16; 88:16        lot 8:8,8,25; 22:1; 24:23;
 investment 54:11; 83:17          101:25; 102:25                   legislatures 32:23              31 :6; 47:6; 50:24; 54:21;
 investments 75:25; 83:7;         kind 15:18; 20:10,15; 35:1;      Leo 100:16; 106:15              57:18; 59:15; 60:15; 61:3,9;
 110:24                           54:12; 61 :14; 63:20,20; 64:9;   less 30:3; 53:19; 65:23,23;     63:7,24; 65:1,23; 66:1;
 Invited 4:7; 6:8,9               70:18; 71:22; 80:11; 89:10;      80:25; 84:18; 89:18             67:8,16; 68:22,24; 69:3;
 invlt s 24:6                     92:15                            lesson 18:8                     70:16; 72:25; 76:18; 81 :23;
 Inviting 50:6                    kindergarten 19:2; 44:22         Let's 22:20; 62:3,5; 63:4;      85:7; 92:9,10; 108:17
 inv Ive 65:18                    kinds 62:5                       64:21; 65:15                    lots 24:3; 52:23; 68:7,20;
 inv Ived 56:21; 62:22; 68:9;     kiosks 71 :17; 77:5              lets 63:19; 71 :2; 86:21        80:17
 79:23; 89:17; 94:24; 95:3;       Kirk 49:9                        letters 3:17; 96:17; 114:10     love 78:6; 113:14
 103:4                            Knight 102:10                    letting 102:2                   loves 75:25
 involvem nt 4:9                  knowing 79:20,21                 level 33:23; 54:11; 63:10;      lunch 19:7
 inv Ives 17:25                   knowledge 3:24                   72:19; 75:16; 79:6; 80:1
 Iowa 43:7,16                     known 23:16; 43:5                levels 79:10                    M
 ironic 89:13                     knows 71:2                       liaison 96:1; 100:7
 isn't 105:10                                                      librarians 68:14                machine 65:22,24; 66:2;
 issue 4:10; 36:11; 58:24;        L                                libraries 49:21; 67:25;         84:16,19; 86:16
 66:4,22; 67:11,23; 72:15,19;                                      68:2,10,16                      machines 65:20; 82:25;
 76:20; 77:12; 78:1; 96:11                                         library 18:7; 68:4,10; 82:2     84:5,20,23; 85:1; 94:1
                                  labor 40:3; 109:24
 Issues 3:8; 38:14; 39:11;        laboratories 85:18               license 31 :20; 32:3;           Mack 20:11
 90:3; 97:9; 100:8                                                 57:22,23; 64:16                 magazine 54:1,5; 94:17
                                  laboratory 86:25; 87:17
 it. 25:6; 114:17                 ladles 2:10                      licensed 32:3                   magazines 54:4
 it? 23:6                         lady 5:16                        licenses 57:10; 77:3            magnificent 4:5; 105:8,21
 item 13:17                       Lake 105:20                      licenSing 31 :17; 63:3;         mail 31:21; 51:24; 54:19,22;
 it ms 11:19                      Lamar 4:7,11,16; 5:6,11;         64:14,10                        55:8; 56:9,10; 59:2; 60:20,22;
 its 20:12; 25:13; 53:12; 67:7;   12:14; 33:19; 110:2; 112:7       life 13:24; 18:23; 44:16;       62:15; 65:8,19; 71:7,8,11,13;
 68:11; 74:24; 113:19                                              52:10; 102:7; 104:20            80:13,22
                                  Lamb II 100:11
 Itself 63:15; 72:13; 84:4;       language 12:23; 13:4; 14:21;     life-style 54:18                mailed 38:21
 86:17                            39:4,7,m,13; 41:17               Iif tim 30:12                   main 62:9; 96:7
                                  Lap 87:5,6                       light 22:5                      malnstr am 75:14
 J                                large 29:3; 52:21; 60:6;         liJ(elih d 44:15; 46:9; 47:15   maintain 39:4; 74:15
                                  63:3; 80:8; 107:24               likely 18:7; 77:1               maintained 58:20; 74:12;

LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                       Ind x 7
    CLOSING PLENARY SESSION                                                                     WEDNESDAY, JULY 30, 1997

     96:8                           89:4; 101:3; 105:9; 110:20        m ther 18:6                      68:14,16; 69:5,6,19,20;
     maintenance 70:9               meetings 2:5; 51 :4;              motl n 38:3; 44:2; 46:24;        72:24; 73:22; 82:4,12,20;
     mal r 3:6; 13:2; 21 :20;       60:24,21l; 101 :23                47:2; 48:17,20; 103:25           83:10,11,15,24: 84:19,25:
     39:~7; 50:1; 54:23; 66:14;     meetings; 52:2                    Mot rs 22:12,15; 23:23;          86:23; 87:11; 88:20; 92:16;
     109:2                          M gan 101:22                      94:3                             99:14; 101 :6; 109:23: 114:2
     maL rity 42:21; 55:6           m mber 21:12; 32:17; 95:15        mott 114:15,17,17,18             n west 82:4
     ma e 6:18,20; 9:2; 12:4,8;     members 41 :10; 45:22;            mottoes 114:13,15                news 10:10; 14:11; 58:11:
     17:20; 18:10; 19:11; 20:12;    47:7; 103:16                      mountains 10:9                   75:23
     26:3; 28:6; 32:10; 42:9,13;    memories 88:14; 102:6;            mouse 69:15                      next 21:15; 23:4; 33:17;
     43:4; 56:20; 58:4,6; 61 :18;   105:18                          " move 8:20; 13:6,15; 15:10;       40:8; 52:15; 66:16; 68:23;
     63:18; 65:22,23,25; 67:2;      men 13:22; 14:3; 28:22            33:17; 35:18; 37:17; 41:2;       69:12; 77:7,7; 78:19; 82:1,8;
     72:17: 73:1: 77:9,12: 78:16:   mention 109:18                    46:17: 47:15,22; 53:22;          112:22; 115:14
     82:18: 90:17: 97:19:           mentioned 18:23: 33:19:           87:16,18; 103:14                 NGA 3:11,15,17).17; 4:12;
     99:20,22: 101:10; 102:2:       42:5; 106:13                      moved 6:21; 45:11; 72:25         36:2; 95:15, 18; ~6:19; 97:16;
     103:1: 111 :14: 112:5,13;      mentioning 81 :19                 moving 27:14; 46:6;.9; 52:5;     100:8; 105:8; 107:22
     113:25; 114:4,22; 115:16       mentors 94:7                      75:8; 82:7: 83:23; 90:24;        nice 62:12; 115:23,24
     make- 42:16                    merely 91 :21                     112:2                            Nicole 100:11,14; 106:16
     makes 12:11.t12; 27:22;        message 3:15; 35:6;               MSNBC 75:23                      night 2:14; 4:5; 89:11;
     51:7; 59:12: 07:4              56:10,1'2; 59:2; 62:17; 78:23;    Mt 105:20                        99:25; 100:22; 105:24,25;
     making 10:25; 20:21; 27:7;     86:11,12                          Mulhall 100:15; 106:15           114:11
     35:2; 50:12; 51:15; 57:21;     messages 56:13; 57:16             Murfreesboro 19:23               night's 105:22
     65:13; 66:11,24; 69:22;        met 13:14; 44:10                  music 18:8                       nine 35:25; 38:18,20
     74:23; 75:6; 101:16; 106:11;   Michael 103:12                    mutual 113:17                    Nissan 23:1,4,8; 30:4
     108:16                         Michigan 44:25; 94:2                                               Nobel 7:23
     man 48:24; 114:4               Microsoft 49:2,3,7: 55:20;        N                                nobody 10:8; 13:25; 75:15
     manag 50:20; 52:24; 65:21;     57:13; 58:10; 70:11; 71:6;                                         Nolan 47:8
     79:14                          78:6; 79:3                        name 21:14                       Nominating 102:13; 103:15
     managed 51:3; 96:6             middle 17:3                       named 6:14; 92:23; 94:14         non-Disney 93:21
     manag m nt 22:18; 23:5         miles 23:11                       Nashville 5:6; 19:14             non-union 23:3
     managers 79:4,6                milestone 50:1                    Nation 7:17,19,20; 9:23,24;      nondiscriminatory 42:11
     mandat 20:17                   military 39:9                     10:9; 19:19; 20:11; 22:11;       none 5:20
     mandates 108:20                MILLER 2:1; 5:22; 24:7;           23:19; 24:12; 34:10              normally 70:10
     mandat ry 70:12                25:2,16; 30:8; 33:15; 35:4;       nation's 2:18; 9:4; 36:3;        Normandy 22:6; 25:9
     Mari n 12:15                   37:20,22; 38:2; 41 :4; 43:1,23;   96:13: 97:4                      North 30:14; 31 :18; 34:24;
     market 20:10                   44:2; 46:22; 47:2,17;             NAnONAL 1:6; 2:12; 7:19;         44:25
     marks 13:9; 34:14,16           48:15,20; 50:5: 69:25; 73:7;      8:4,11; 9:2,10; 10:2: 14:19;     Northern 89:15
     Mars 9:16                      77:13; 78:21; 81:11; 85:13;       27:6,7,8; 29:10; 32:13; 33:25:   notably 35:25
     Martha 5:15                    87:22; 89:10; 91 :15; 92:4;       34:4,5,6,7,18: 45:8; 88:19:      note 69:2
     Martin 95:15; 109:20           95:12; 100:13; 102:9;             89:1; 93:19; 103:7,17; 105:7;    notes 117:10
     Maryville 13:13                103:11,19,21,25; 105:5,10;        109:22; 111 :10                  nothing 31 :20; 42:8; 52:11;
     master 10:21 24; 11:2 9;       115:10                            nationally 26:16,21,23;          92:1
     13:18,19; 15:4,12; 16:16;      Miller's 21:1                     93:11                            notified 61 :22; 76:2
     20:20; 28:16; 29:18,22;        Millers 114:3                     nations 88:10                    notion 71 :21
     30:20; 113:25                  million 18:3; 49:20;              nations's 12:4                   notorious 74:1,2
     Masters 26:9                   52:12,14,16; 81 :25; 82:12,18     Natural 35:21,24; 36:12,17;      novel 85:23
     match d 63:18                  millionaire 93:2                  37:19                            now. 60:16
     material 63:25; 65:6           millions 14:4; 109:6              nature 52:19; 86:14;             number 8:7; 10:18,21;
     math 12:3,18,19; 13:1;         Milwaukee 8:18; 17:13,16;         104:8,12                         16:2,3,15,15; 19:15; 29:3;
     16:1,4; 92:14; 93:4,7; 94:7;   24:23; 115:18                     NBC 58:11                        60:4; 75:24; 86:6
     95:9                           mind 19:22; 82:15                 Neals 98:22                      numbers 63:11
     mathematics 9:9                minds 81:21                       near 89:15                       nursing 82:2
     matter 13:22; 32:13; 70:13;    mine 41:3; 81:22; 99:14           nearly 49:20
     117:9
     matters 35:17
                                    minimum 63:21
                                    minute 47:10; 115:4
                                                                      necessarily 12:18,19             o
                                                                      need 2:5; 17:12 24; 30:1 5;
     maximize 47:15                 minutes 78:22; 92:8; 111 :22      31:7,10; 42:4; 66:20: 75:3;      o;f 52:7
     may 5:19: 23:13; 27:17:        Mira(Je 1:100; 106:4              85:19; 98:17; 108:22;            Oak 13:12
     36:19; 40:9; 46:2; 57:17;      MiSSissippi 33:5; 49:9            111:12; 112:23; 113:3            objection 21 :20; 46:17;
     68:22: 94:16; 112:25           mistake 85:11: 97:19              needed 93:4; 108:18              116:2
     maybe 2:15; 21 :11; 85:25;     Model 14:9; 80:1; 93:5            needs 11:4; 15:23; 16:14;        observations 97:17
     113:16                         models 31:14                      18:22; 74:12                     obsolete 82:18; 83:9
     mayor 110:7; 114:16            modest 9:11                       negative 27:13                   Obviously 41 :25; 70:15;
     Mead 105:20                    moment 39:15: 49:14               negotiation 55:2                 77:15
     m an 9:24; 10:21; 16:20;       moments 98:19                     ne~otlations 48:1,6; 97:8        occasion 105:8
     28:24; 30:2; 34:4; 51 :2;      Monday 6:9; 44:10,20              Neighborhood 45:9                occasionally 97:9
     54:18; 72:1; 79:13; 96:2       money 8:9,9; 15:20; 21 :3;        nervous 50:11; 51:1,5,10;        occasions 107:6
     m anlngful 99:21               25:10; 26:9,12; 27:20; 40:23;     79:4,9; 81:9                     occupation 63:20
     means 51 :10; 52:11: 61 :24;   56:22; 76:5; 81 :23; 82:10:       network 52:4; 66:13; 67:4;       occurring 19:16
     79:8; 94:21                    109:9,14                          81 :5; 83:8; 85:11               October 113:13
     m ant 97:21                    Mont 99:14                        networks 49:25; 51 :11;          off 18:5; 54:20; 65:7; 99:1;
     m asure 10:1; 27:4             months 70:8; 78:19                66:5,9,12: 80:18                 113:10,11
     Medicaid 3:6; 98:5; 109:1;     months' 56:2                      Nevada 1:41; 89:13,15;           offer 59:5
     112:23                         moon 10:6; 22:7; 25:9             99:6,14,19; 101:2,5; 103:11;     offering 16:18; 29:6,7; 43:15
     m dical 76:22; 104:19          Moore 52:6; 97:25                 105:6,17; 117:3,17               office 5:2; 38:19,22; 88:12;
     medicin 52:1                   Moore's 52:8                      N vada's 2:13                    90:20; 117:16
        di crity 7:21               moratorium 39:10;                 neverth less 42:16; 91:3          fficer 49:2
•      edium 53:6                   42:6,14,20                        new 12:11; 14:19; 27:10;          fficers 103:6,16
     meet 11 :3; 15:23; 16:14       morning 2:4,9,9; 3:19; 4:1,8;     37:8; 38:19; 45:14,17,25;         ffices 51 :15; 96:1
     meeting 2:11; 24:11; 27:23;    10:12; 50:4; 79:1; 92:9           46:1,20; 50:9,12,14;             official 88:15; 90:13; 117:16
     34:5; 35:14; 49:11; 78:9;      mostly 52:20; 84:6; 89:24         54:11,11; 58:10,15; 66:6,25;     oft n 32:2; 60:2; 80:10;

    LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                       Ind x 8
CLOSING PLENARY SESSION                                                                    WEDNESDAY, JULY 30, 1997

 104:19; 107:23; 114:14           106:3; 115:11,13                payments 74:4; 76:9,22,23       Planned 101:25
 Ohl 14:22; 33:5; 103:8;           verall 62:21                   payroll 55:25; 71:5             planning 21:16
 107:5; 113:13; 114:14,18          wn 2:25; 9:10; 12:6; 24:16;    PCs 83:5                        plant 22:24; 23:1,3,4,8,10,11
 Ohl • 113:6                      26:19; 37:19; 53:1,2; 59:23;    peace 111:8                     plants 4:19,22; 30:4
 Okay 79:15; 82:22; 111:19        73:16; 74:24; 91:1              peer 27:25                      play 68:11
 Oklah ma 33:7                     wn rs 91:5                     peers 28:9                      players 107:20
  Id 84:24; 85:2; 110:7           ownership 66:2; 87:8            Pell 34:21                      Please 5:10
 on-guard 91:19                                                   pending 39:11                   pleased 3:19; 50:2; 97:23;
  n-Dne 64:18; 73:2; 79:18;       P                               Pennsylvania 44:9,25            107:12
 80:18,24                                                         penny 14:7; 100:16; 106:15      pleasure 6:6; 49:1; 96:18,25;
  nce n:5; 86:10                  P.S.47:5                        people 8:14; 17:22; 22:1,17;    97:13; 98:13,16,23
 One 3:21; 4:13; 5:20; 6:7;       package 112:10                  23:1; 24:3; 25:5; 29:6,25;      PLENARY 1:10; 2:11
 8:7,13,24,25; 10:18; 13:2,3;     packet 35:12                    30:3,5; 46:6; 47:16; 49:8;      pocket 26:20
 14:7,7,7; 15:15; 16:6,15;        page 57:13; 59:8; 61 :7;        51:5; 52:23; 53:21; 54:2;       point 25:22; 47:24; 63:14;
 18:2,15; 20:2,22; 21:13;         63:7,11,19; 74:3,10             56:21; 59:6,9,15; 60:5,14;      86:7
 22:16,22; 26:6; 28:1; 31:7;      pages 64:1; 69:17; 73:18;       61:6; 62:19; 63:18; 64:1,24;    pointed 98:1
 33:16; 38:19,22,22; 41:13;       75:17                           66:19; 67:2,16,21;              policies 35:11J.13,25;
 45:12,14,17; 46:1,19,20;         paid 14:5; 20:4; 24:21; 26:4;   68:5,11,15; 71:9,12,14; 75:7;   37:15,18; 38:10; 39:2;
 47:5,20; 48:8; 52:22; 55:19;     28:19; 54:25; 61:16             77:4,5,8; 78:7; 79:14,20;       45:12,14,16,17; 46:19,20;
 57:2,12,16; 58:10,13;            painted 65:13                   81:3,9; 83:3,16,22;             59:13; 66:25
 59:2,23; 60:11; 61:3,14;         pair 94:7                       84:1,18,20; 86:15; 87:20;       policy 3:18; 35:9,20,25;
 64:12,22; 71:7; 72:15; 73:24;    paired 93:25; 94:2              88:7; 89:22; 90:2,12,20,24;     36:2,18; 37:2,7;
 75:20; 78:9,22; 80:5,9,9;        Panel 9:10                      91:1,5,10; 97:22; 99:23;        38:19,22,23,24; 39:3; 40:22;
 82:23; 84:8; 85:14,22; 86:2,6;   pa~r 51:4; 55:20,22; 57:2;      100:2; 101:20; 105:3,4;         41:16,19; 42:11;
 87:18,19; 89:3; 91:2,6; 94:25;   71:21; 72:4,7,12                108:12; 111:8; 112:1; 114:13    45:12,13,15,18,25;
 101:12,19; 102:6; 105:23;        paper-based 60:4                peoples' 80:23                  46:1,11,19,21; 47:20,25;
 108:2,20,23; 110:12; 112:23;     paperback 49:24                 per 73:23; 109:7                48:3,14; 95:25; 97:8
 114:15                           paperless 71:25                 ~rcent 8:10; 9:8; 17:5;         political 72:15,19
  n 's 28:9                       pa~rwork 57:3; 60:1;            18:18; 20:7; 25:10; 29:19;      politics 89:17
  ne-time 84:3                    66:21; 72:12; 73:5; 76:6;       33:7; 54:13,16; 83:1,2          poor 17:14; 20:5; 34:21
  ne-year 8:2                     80:25; 84:9                     percentage 71:9,16              popular 75:21,23
 ones 50:20; 55:12; 100:1         parent 49:13                    perform 93:14                   pornography 19:12,18
  ngoing 84:7                     Parenthood 101:25               pttrformance 34:1;              portforio 32:1
  nto 65:6; 67:1                  parents 11:6,7,8; 16:17,17;     .it.6:5,7.12,15                 portions 48:21
  pen 16:4; 36:6; 80:23           17:10,11,12,15; 20:4,7,13,14;   performers 89:12                pose 7:2,11
  pened 20:2                      21:5; 33:22; 64:5               Perhaps 67:11; rra; 78:17;      position 37:10; 66:7
  pens 69:19                      part 27:8,9; 29:20,21; 48:12;   108:9                           positions 35:9
 opini n 108:8                    67:13; 68:7; 76:13; 83:21;      pttrmanent 32:3; 39:13;         positive 27:13; 53:13; 65:13;
  PP- rtunities 56:19;            84:2; 89:1; 92:12; 99:7;        .it.5:13                        69:3; 104:25
 63:2,22; 73:16; 88:21;           105:10                          permission 16:7,8               possible 73:1; 109:15;
 90:1.2,23,24; 95:1               participants 93:18              permits 57:9                    113:13
 oPI' rtunitv 8:14; 15:4;         partiCipate 51:21; 89:5,7;      person 76:17; 100:7             possible. 114:19
 16:10; 20:10,25; 24:14;          104:17                          personal 51:23; 53:1; 55:7;     post 38:19,22
 32:14; 41 :23; 42:24; 50:9;      particip-ated 45:6; 94:21;      62:11; 65:16; 68:13; 70:23;     postgraduate 26:8
 68:6; 69:8; 72:5; 73:14;         97:7; 101:22                    77:11; 81:5; 88:11; 102:17      potential 46:4
 89:21,23; 90:11; 92:18;          participating 94:22             personally 3:15; 42:14          poured 8:9; 99:8,10
 95:3,8; 113:18                   particular 62:12; 66:17;        perspective 102:21              power 25:11; 36:7
 opp- sed 38:2; 39:19; 44:2;      95:15                           persuade 20:18; 22:23           powerful 35:6; 52:9; 53:5;
 47:2; 48:20; 86:9; 103:25        particularly 28:14; 84:5;       pervasive 53:13; 75:7           72:16
 optic 83:10                      97:23; 114:21                   Pete 114:5                      powers 88:8
  ptlmlstic 65:14; 84:17          parties 15:8                    Ph.D. 26:9                      practical 13:10
 opti n 17:9; 19:9,9; 35:2        partners 106:10                 phenomenon 73:21; 79:8          Practices 78:15; 81:14;
  ptl ns 28:25; 55:25; 57:24      Partnership 37:9; 111:15        philosophical 85:15             98:19; 112:17; 115:8
 options; 50:24                   parts 11:13                     phone 58:6; 63:11               pray 91:9
  rder 13:19; 15:12; 27:19;       party 91:7                      phonetiC 92:23; 98:1,9;         predicted 108:12
 93:3                             partying 100:1                  100:15; 101:14                  pregnancies 19:16
  rganizati n 40:2; n:17,22;      pass 15:1; 48:5; 64:23          phonetic) 100:11; 114:5         pregnancy 46:10
 80:17; 81:14; 91:2; 95:25;       passage 41:2                    phonetiCS 12:22                 premature 27:18
 104:7,9,14,17; 105:3;            ~ssed 35:16; 40:9,11; 48:5;     Phyllis 12:15                   preparation 31:8
 107:10,14,24; 108:15;            .it.9:11;108:9                  phys-ed 18:13                   prerogatives 90:20
 110:3,11; 111:24; 112:13,17;     passing 65:1; 72:13             pick 22:20; 54:1,6; 63:19;      present 35:15; 38:20; 96:15;
 113:11,19; 115:6                 passion 25:17                   83:3                            103:5; 105:1
  rganlzatl ns 40:5; 107:17;      password 60:10; 62:4            picked 22:17                    presentation 38:9
 110:5                            past 86:15; 89:3; 97:3;         picture 65:14                   presentations 44:23
 organizing 108:25                109:1; 111:25                   pieces 51:23; 72:7; 99:13       presented 105:5
  rlginally 35:11; 41 :11         pat 14:17; 49:10                piggyback n:1,3                 presently 43:6
 others 2:16; 23:21; 32:16;       path 60:3                       piggybacking 74:25              presidency 21:16
 45:1; 47:13; 85:25               patriots 22:3                   plrgrlms 22:3                   President 2:24; 5:3,4; 6:8;
 otherwise 50:24                  Patton 38:6,7; 41:9; 113:4      pillow 114:12                   8:6,7; 9:18; 11:20; 12:25;
  ught 11:16; 16:22; 18:10;       Patty 98:10                     pilots 80:23                    15:8; 21:14; 22:11; 31:9;
 19:10; 31:16,24; 32:4,10;        Pauf 113:4,4,5,7                pioneers 9:24                   39:21; 40:15; 109:22;
 33:4; 42:19; 110:10              pay 5:1; 8:23; 10:22;           place 4:25; 6:20; 10:13;        111:13,15
 ourselves 35:3; 53:10,11         26:4,19; 28:22; 30:6; 31:23;    14:8; 22:20,23; 43:7; 54:8;     President's 12:1; 111:2
  utcome 23:24,25                 32:25; 33:2,4; 74:24;           57:16; 117:9                    presid nts 88:9
 outc m s 46:12                   75:12,12; 94:9                  placed 73:23                    press 100:16
 outrage 18:17                    pay. 61:17                      places 74:10                    pressur 28:1,9
 outsid 72:24; 78:10              paying 14:7; 32:19; 33:5;       plaid 35:5                      pr tty 69:9; 76:3; 80:3
  utstanding 81:14; 91:12;        76:5; 81:6                      plan 48:25; 56:5                price 52:13,25
 96:14; 98:4; 101:6; 105:6;       paym nt 76:4                    plan 107:15                     primarily 36:15; 75:9


LAURIE WEBB & ASSOCIATES (702) 386-9322 Depo-Merge                                                                     Ind x 9
   CLOSING PLENARY              SESSION                                                               WEDNESDAY,        JULY 30, 1997

     primary 66:7                      88:15,22; 90:13,16; 91 :20;        really 7:6; 11 :20; 13:1,14,21;   111 :8
     principals 9:19                   94:25                              18:16; 20:16; 26:14,25;           remiss 106:6
     prlncipl s 46:14                  publicly 106:2                     30:19; 34:17; 44:22; 47:15;       r m t 93:14
     print 61 :19; 65:8                pump 92:25                         50:21; 52:6,18; 53:25; 54:4;      renamed 37:1
     print d 51 :14; 55:24; 64:4       pure 99:12                         60:13; 63:3; 66:13; 74:3;         renewing 57:22
     printing 51 :15                   pursue 33:21                       76:17; 77:18; 79:9,13;            R no 86:3
     priorities 3:1,8; 111 :3,23       push 31:10,16; 32:24; 33:11;       80:15,23; 81 :1,18; 84:25;        repeat 84:4
     prl rity 65:22; 68:24; 111:7      87:19                              87:23; 94:19; 97:12; 98:23;       repeated 3:14
     privacy 60:7                      pushed 30:18                       104:6,8,9; 105:12; 106:4,9;       repeatedly 3:18
     private 18:23; 20:9; 68:21        pushing 89:19                      107:9,19; 108:11; 110:1,10        replaced 57:4
     privil ge 6:10; 115:6,7           put 4:17,25; 9:15; 23:3;           reason 13:21; 14:1,2; 15:9;       replacement 84:22
     privil ged 103:5                  25:8; 27:11; 32:22; 58:11;         91:23; 96:8                       replicate 115:14
     probably 18:1; 110:6              60:8; 61 :5; 63:4,24;              reasons 75:4; 89:3                report 7:19; 9:2,4; 12:4;
     pr blem 8:9; 12:24; 13:10;        64:1,13,18; 65:3; 67:1; 68:24;     reassured 74:16                   22:11; 38:13; 44:4,9; 102:13;
     18:20; 24:15; 34:6; 38:13;        70:25; 78:18; 80:18; 81 :25;       recall 30:13; 46:3                103:15
     42:1,17; 43:17; 54:7; 82:9;       82:4; 83:11,15,16; 85:17,20;       recently 17:13; 40:9; 73:21       Reported 1:0
     84:24; 112:24                     88:1; 108:21; 111:23; 112:9        receptive 68:18                   Reporter 117:7
     pr bl ms 13:2; 18:21; 34:8;       putting 22:6; 56:4; 81 :3;         Recognition 92:21                 REPORTER'S 117:1
     78:5,17; 79:14; 113:2,17          83:14; 86:7; 102:19                recognize 92:5; 95:14;            reports 80:11
     pr cedur 61 :13                                                      96:14"; 97:1; 107:11              represent 40:16
     pr ceedings 117:8,14              Q                                  recognized 8:12; 109:20           representative 59:3; 94:14;
     pr cess 27:3; 28:18; 31 :25;                                         recommend 48:13                   100:16
     32:21,21; 33:1; 40:25; 51 :22;    quality 25:18; 51:8;               recommended 37:18                 representatives 58:23,25;
     62:18; 79:18; 80:3,5,10,21;       66:13,15; 74:7,18                  recommending 43:5                 88:17
     99:7                              quarter 9:7                        record 4:21; 117:14               republiC 90:22
     pr cesses 79:16                   question 7:2,3,11; 9:11;           records 71:3                      Republicans 108:5; 115:9
     Pr ct r 94:4                      f1:15; 26:25; 28:13;               recruited 4:18                    request 35:19; 40:23
     produce 93:10; 99:4,18            33:16,20; 37:24; 43:24;            recruiting 90:14                  require 35:15; 68:20
     pr duced 4:14                     46:24; 48:17; 62:15; 70:7,21;      recycling 57:24                   required 34:25
     pr ducer 4:20                     77:7; 81 :21; 85:14; 86:13;        red 14:17                         requirement 19:8; 59:24
     pr ducing 23:2; 99:15             103:22; 113:23                     reduce 44:14                      requires 57:1; 73:6; 81 :2;
     pr duct 8:11; 99:9                questions 25:22;                   redUCing 39:21; 46:9              84:25
     pr ducti n 79:10                  61 :10,13,14; 70:2; 73:8; 74:5;    reduction 111:3                   research 49:5
     pr ductive 99:20                  94:16; 95:10                       refer 30:10                       reserved 88:9
     pr ductivity 65:19                quick 47:5; 80:24                  reference 77:20                   residence 113:16
     pr fessl n 29:12                  quickly 8:21; 10:16; 47:19;        reflect 24:8; 69:4                resolution 40:6,9; 41 :8;
     Pr fessi nal 14:14; 29:11;        63:4                               reflects 35:13                    42:10; 43:17
     95:4                              quietly 98:1                       Reform 3:2; 5:17; 7:10;           resolutions 39:11; 41:3
     pr ficient 9:9                    quite 12:24; 53:25; 54:10;         46:3; 47:14; 98:7; 108:4;         Resources 35:22,24;
     proficiently 9:6                  81:4; 89:18; 93:23; 114:14         111:5                             36:12,17; 44:6,10; 47:9;
     pr fund 81 :7; 86:19              quotes,"For 92:21                  reforming 88:21; 108:10           67:25
     pr gram 3:20; 4:25;                                                  refresh 85:10                     Resources' 37:19
     5:1,17,19; 7:25; 28:16; 31 :23;   R                                  regard 42:2,21                    respect 18:3; 36:19
     48:5; 70:12; 87:6; 92:19;                                            regardless 91:7                   respective 107:25; 108:18;
     93:17; 94:17; 107:8                                                  regime 66:6                       109:17; 111:9
                                       race 108:12,13,14,17
     programs 20:6; 21 :7; 37:16;      radical 19:25                      region 91:7                       respond 28:10; 74:6
     38:11; 110:21,22; 112:11                                             regional 2:4; 93:11               responded 68:14
                                       raise 31 :16,23,23; 56:21
     pr gress 9:10; 27:4,7,22;         raising 30:23; 41 :20              registration 61 :24               response 31 :3; 37:21; 38:1;
     72:14; 111:14; 112:5                                                 regular 51 :22; 81:10; 88:23      44:1; 47:1; 48:19; 96:10;
                                       ran 112:10
     pr gr ss. 28:7                    ranks 71:23                        regulation 36:14                  103:20,24
     pr gressive 85:23                 rapid 53:20                        regulations 11 :2; 16:13;         responsibilities 6:4; 33:22;
     pr gresslvely 86:3                rapidly 55:18; 82:10               18:4                              88:8; 90:18,19; 109:10;
     pr Ject 8:2,3; 13:7,15; 85:22     rate 4:21; 52:6; 65:17             regulators 37:5                   110:23
     pr mises 87:24                    rated 23:9                         Reiley 12:14                      responsibility 33:25; 36:16;
     pr m ting 38:15; 39:5             rates 66:8,8                       reinvested 49:5                   88:10
     properly 72:10                    rather 3:22; 27:21; 66:3;          related 48:1; 49:10; 62:7;        responsible 95:21
     property 57:25,25                 74:5                               85:16                             rest 29:21; 49:18; 73:14;
     pr p sal 11 :22; 12:2; 35:20      ratio 87:18                        relates 55:15; 85:14              100:18
     pr p sals 35:18; 79:19            Ray 97:2,5,12,25; 107:17           relating 72:13                    restaurants 64:23,25
     prop sed 35:9; 41 :11             reach 8:6; 34:17; 51 :19           relation 41:7                     restructure 36:1
     pr secut 45:22                    reached 3:3                        relations 2:22; 95:19             result 10:14,20; 34:17
     pr tect 29:8; 72:17,21;           reaching 50:13                     relationship 37:2; 106:25         Results 4:15; 15:24; 60:11;
     110:24                                                               relationships 106:18              88:24; 112:8,9
                                       reaction 55:18
     pr tectlng 37:6,11                read 9:67' 18:6; 54:4; 65:7;       relatives 54:20                   retail 36:3,5,7,14
     Pr t ction 37:9; 64:14,22         73:22; 85:25; 111 :20; 114:12      relevant 58:16; 78:16             retain 83:25
     proud 5:16,20; 49:13;             reader 111 :21                     relief 39:1                       retirement 56:5
     115:20                                                               relocations 38:20,22              return 39:14
                                       reading 16:1; 68:1
     pr udly 81 :19                    reaffirm 37:10                     reluctant 28:15                   revenue 40:18; 42:9
     proved 33:3                       reaffirmation 46:20                remaining 74:8                    revenues 39:22; 40:1; 49:4
     proven 11 :14                     reaffirmed 45:14                   remarked 105:24                   reverse 30:2
     pr vid 3:22; 10:15; 26:22;        Reagan 21 :14,22                   remarks 6:19; 50:10; 89:10;       review 39:15
     36:6; 59:4; 62:6; 69:5; 106:4                                        92:6                              revised 37:7
                                       real 6:6; 15:12; 31 :25;
     provided 73:18                    47:11,12; 58:1; 63:4; 67:22;       remelted 99:9                     revisit 112:25
     pr viders 36:7                    70:6,7; 72:3,3; 74:17,23;          rem mber 5:24; 7:14,17,18;        revitalize 89:5
Aer      vldes 5:8; 74:10; 92:17;      94:25; 99:25; 106:10; 112:5        13:11; 21 :23; 22:24; 99:17;      reward 27:19,24; 28:8,10
~5:7                                   realistic 20:16; 21 :11 ;          105:2                             rich 63:19; 79:24
     public 10:25; 15:18,21;           22:1,2,4,8; 23:13                  r membrance 96:16                 Richard 100:17
     18:10; 19:2; 20:8; 25:18;                                            remind 6:3; 21 :12                rid 55:22; 56:2,24; 66:20;
     59:12,12; 68:21; 74:16; 77:5;     r alize 71:12; 107:24
                                       realizes 49:17                     remind d 24:13; 73:18;            84:9; 109:13


   LAURIE WEBB & ASSOCIATES                    (702) 386-9322      Depo-Merge                                                   Ind x 10
CLOSING PLENARY SESSION                                                                        WEDNESDAY, JULY 30, 1997

 Ridge 13:12; 44:9; 46:18,23;     18:17; 19:2,14; 20:18,21,21;      several 2:3; 3:5,9; 14:13;       sometime 29:17; 69:12
 90:fO                            21 :6; 24:18,20;                  36:5,10; 107:6                   S m tim s 47:5
 right 7:24; 23:4,19; 33:13;      27:20,21,22,22; 29:19,23;         sex 19:11                        somewher       30:16
 49:16,18; 51 :20; 61 :19;        33:20,22; 34:10,11,13,16;         Shaheen 92:6,7                   s n 49:14
 81:24; 82:14; 87:19; 96:24;      54:20; 58:2; 67:20; 68:9;         share 32:17; 45:3; 56:11;        song 96:24
 98:2,15; 102:9; 112:24; 115:8    82:1,3,3; 86:2,3,4; 93:24;        77:4; 79:11; 92:5; 97:16         s n 76:3; 80:12,15
 rights 90:19                     94:1                              shared 45:6; 101:2               sort 14:8; 18:13; 41 :25;
 rigor us 10:19; 11:9; 12:7;      school? 23:19                     sharing 45:19                    91 :2; 93:13,15
 16:15; 20:19; 29:16              schools 4:14,24;                  Sharon 14:20; 24:21              sounds 78:14
 Risk 7:18,20; 22:11              7:7,13,21,24; 8:2,22; 9:17;       She's 14:20,22,23,24,25          source 42:9
 Risk" 23:20; 24:13               10:3,16; 11:3,7,10,17;            sheet 53:3                       South 1:15; 103:12
 risky 32:21                      13:10,12; 16:6,9,14,19;           Shenker 23:16                    southwest     17:1
 road 11 :25; 49:23               17:11,12,15; 18:10,12,16,22;      shift 86:24                      sovereignty     41 :15
 r ads 58:19,19,20                20:2,8,13; 21 :8; 23:22; 25:12;   shirt 35:6                       Spanish 19:1; 64:19
 Robert 45:8                      27:14; 67:25; 68:4; 84:23;        short 111 :20                    speak 42:21,22; 67:16;
 r b t 94:11                      85:3; 86:4,14; 87:5; 93:9         Shorthand     117:6,10           69:20; 92:8
 rob tics 92:6; 93:9              Schultz 112:15                    shouldn't   74:14; 84:4          speaker 3:25
 r b ts 30:4; 93:10,12,14         science 38:23; 86:21;             show 8:18; 53:23;                speaker's 33:17
 Roch lie 101 :13                 92:14,21; 93:4,7; 94:7; 95:9      58:20,22,23; 94:8,12             speakers 2:7
 R ck 105:23                      scores 16:2                       showed 69:18                     spea~ing 17:4; 77:15; 91 :24
 Roger 22:14; 23:13               scouting 101 :23                  shows 89:12                      SpeCial 3:13,24; 47:12,16;
 R land 38:10                     scratch 12:11; 22:20              side 68:9,10                     68:11; 77:24; 99:10;
 role 66:10; 68:11; 76:25         screaming      100:3              sign 61:20                       100:21,23; 101 :19; 104:19;
 r les 90:9; 101:2                screen 56:7; 65:7; 70:24          signatures    66:20; 72:10,14    107:15; 114:14
 R 11105:23                       screens 60:12                     signed 3:17                      specific 13:19; 79:7
 R m r 103:10                     scroll 63:13                      signify 37:24; 43:25; 46:25;     specifics   11 :19
 Ronald 21 :14                    seal 117:16                       48:18; 103:22                    spectacular     112:18; 114:9
 r om 14:13; 102:11               seat 88:16                        signing 56:1                     speech 21:17
 R ster 6:25                      second 13:17; 15:19; 31 :16;      Sirver 2:14; 99:3,17,18          speeches 19:11; 59:13
 roosters 24:1                    32:25; 35:8; 37:20,22; 41 :4;     similar 91:3                     speed 66:4,9
 r t 79:10                        44:12; 46:22,23; 48:15,16,16;     simple 56:10; 58:7; 65:22;       Spell 46:13
 Rosc    32:16                    99:15; 103:19,20; 109:4           70:6,24                          spend 8:10; 40:19; 53:16;
 r se 14:17                       secondary      21:5               simply 12:4; 19:9; 26:10;        106:21
 R SS 101:21                      secondly 81:19                    46:13; 52:1; 56:4,6; 59:8;       spending 39:22; 40:7,17,17
 r unds 39:10,12                  Secretary 5:4 25; 12:13;          75:13; 86:16                     spends 21:4
 rovers 9:15; 22:6; 25:9          25:21; 27:10; 30:10; 33:9         Singapore 72:24                  spent 2:20; 4:12; 22:19;
 R y 103:9                        sector 68:21                      single 10:25; 15:15; 27:20;      40:24; 100:7,17
 RPR-RMR 1 :25; 117:23            secure 60:10                      28:7,8; 97:18                    splatter 99:8
 rules 11:1; 16:12                security 50:23; 60:6; 76:23       singled 28:15                    splatters 99:11
 ruling 2:4                       seeing 54:2; 57:25; 106:23        sit 64:5; 68:12                  spoke 111:2
 run 19:1,1J..2;29:16; 42:13;     seem 21 :21; 74:21; 75:2;         site 63:3; 64:12; 65:3; 75:22;   spoken 104:18
 83:10,10,1i!                     97:20; 104:23                     79:22                            sponsor 78:6
 running 9:15                     seems 16:10; 42:5; 61 :18;        sites 59:18; 63:16; 73:22;       sports 74:21; 75:2,20,22;
                                  74:15                             75:21,22,23                      93:4,5
 S                                seen 17:14                        situation 62:1                   spouses 102:16
                                  self-made 93:1                    six 56:2,3,24; 70:8,8; 78:19;    spread 53:3
 sacrifice 104:13,16              self-sufficiency    46:7          84:23                            ss 117:0
 saf 17:11; 19:8                  seminars 112:19                   skill 97:8                       staff 21 :19; 47:7,9,18; 65:24;
 Safety 64:2,8; 90:16             senate 30:16; 91 :24              skills 68:5; 70:14               95:15; 97:3,15; 98:13,22;
 sag 97:5                         send 51 :25; 56:11,13; 59:2;      slot 71:1; 77:12                 99:19,24; 100:3,19,24; 101 :4;
 salary 29:20; 63:21              71 :11; 85:18                     slow 111:22                      102:18; 106:24; 107:1,18,22
 sales 41 :25; 42:1,8; 57:25      senior 95:20                      slowly 76:8                      staffs 107:16,19,21
 Sandy 4:4; 5:22; 101 :21 ;       seniors 9:6,8                     small 49:15; 89:8; 99:8;         stand 71:4
 102:18; 104:16; 105:13;          sense 18:5; 61 :18; 87:8          105:1                            standard 101:6
 113:21,22,24;                    sent 31 :20; 35:11                smaller 82:16                    standards    10:19; 11 :9,19,22;
 115:10,12,17,20                  sentence 41 :18                   Smart 76:20,23; 77:10,12;        13:14; 14:15; 16:15; 20:19;
 sat 16:4                         Sentiment 92:4                    80:19                            27:1,5,7,15,23,24; 29:11;
 Saturn 23:3,11,15,18,18,23;      separate 54:4; 78:2; 97:11        smarter 55:1                     30:23; 31:17,17,23; 33:9;
 30:3                             series 109:2                      Smith 22:14,25,25; 23:13         34:12; 88:23; 109:25; 112:14
 Saturns 23:12                    serve 26:10; 46:14; 89:22;        sD-calied 15:15                  Standing 35:14; 39:25; 44:4
 save 76:5                        113:18                            Social 76:22                     stands 92:20
 saving 109:25                    served 48:12; 95:19; 96:3;        society 67:23                    start 17:6; 18:23; 19:13;
 say-ing 4:4; 37:25; 43:25;       101 :14                           software 49:3; 83:1; 84:25       22:20; 49:15; 71 :14; 89:3;
 46:25; 48:18; 69:14,21; 81 :7;   serves 47:8; 95:24                sold 23:12; 49:23                100:6; 106:17
 103:23; 115:9,19,23              service 5:21; 29:12; 43:20;       Solely 40:1                      started 73:19; 80:21;
 says 9:10; 27:6; 61:15,16;       51 :8; 77:18; 91 :20; 96:15,19;   solve 38:12; 112:23              92:17,22; 93:17; 113:7
 114:25                           109:21                            solving 12:24                    starts 71:5
 scenari s 53:3                   services 5:9; 38:24; 39:6;        somebody 28:2; 30:16;            State 2:14,22; 3:4; 4:23;
 Schafer 33:16,19                 43:6,10; 63:13; 73:18             54:6; 60:3,9; 62:8,18; 63:12;    5:17; 6:3,11; 7:25; 8:24;
 schedule 60:24; 70:3; 79:2       serving 3:11; 32:16; 88:14;       86:16; 96:5                      11 :13; 14:7; 20:18; 21 :19;
 scheduling    18:21              91 :18; "96:18; 114:23            somebody's     59:25             26:1; 30:14; 32:23; 33:7;
 Sch ppach 97:2; 107:17           SESSION 1:10; 2:11                somehow 115:14                   36:15,24; 37:8; 39:5; 40:4;
 Schlafly 12:15                   set 10:19; 18:4; 20:18;           someone 111:2                    43:7,12,18; 44:24; 45:19,24;
 sch larship 21 :2; 34:21,22      21 :25; 60:21; 70:14,23;          something     14:18; 30:22;      50:17; 57:14; 58:21; 59:23;
 sch larships 25:1                75:22; 79:24; 101 :6; 111 :15;    31 :13; 33:13; 41 :14; 43:7;     61 :6,12,24; 62:7,21; 63:1,17;
 scho 19:6,8; 10:25; 11:1;        117:15                            54:1,23; 62:16; 77:16;           64:16; 66:15,17; 69:23;
 13:7; 14:15,24;                  setting 79:5                      78:6,18; 81 :21; 82:17; 92:16;   70:16; 76:11,12,14; 79:17,22;
 15:15,16,18,18,21 ;              setup 60:8                        105:2; 106:23; 110:9;            80:5,7; 81:25; 82:3; 84:10;
 16:2,3,11,12,22; 17:23;          seven 14:17;