1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MEETING, Held in the Tulsa Convention Center, Tulsa, Oklahoma, On

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MEETING, Held in the Tulsa Convention Center, Tulsa, Oklahoma, On COpy 1 1 1 2 3 4 THE NATIONAL GOVERNORS' ASSOCIATION 5 1993 ANNUAL MEETING 6 7 8 9 10 TRANSCRIPT OF THE EXECUTIVE COMMITTEE 11 MEETING, held in the Tulsa Convention Center, Tulsa, 12 Oklahoma, on Sunday, August 15, 1993, and reported by 13 Karla E. Barrow, certified Shorthand Reporter in and 14 for the state of Oklahoma. 15 16 17 18 19 20 21 22 23 HICKERSON & ASSOCIATES CERTIFIED SHORTHAND REPORTERS 24 616 SOUTH MAIN, SUITE 204 TULSA, OKLAHOMA 74119 • 25 2 1 GOVERNOR ROMER: Fellow Governors, ladies 2 and gentlemen, guests, this is the Executive committee 3 of the National Governors' Association, and I would 4 estimate that we have more attendees at this Executive 5 committee meeting than we have ever had. We have a 6 very busy agenda. At 12:30 the Vice President of the 7 united states, Al Gore, will join us, and we have a 8 good bit of work to do before, and also some work 9 after. 10 Let me just state a welcome and a very brief 11 overview. As you all know, our agenda this year is 12 deficit reduction, health care reform, continuing our 13 education reform, reinventing government, welfare 14 reform. These are very important and challenging 15 issues which we will address some this morning in the 16 Executive committee, some during our task group and 17 committee sessions, and in our Plenary sessions. 18 I would like to expedite our process this 19 morning by asking for a motion and a second to approve 20 the minutes of May 17th Executive committee meeting. 21 Do I have such a motion? 22 UNIDENTIFIED GOVERNOR: So moved. 23 UNIDENTIFIED GOVERNOR: Second. 24 GOVERNOR ROMER: The record of those minutes 25 are in your briefing books. All in favor say aye. HICKERSON & ASSOCIATES (918) 584-7559 3 1 GOVERNORS: Aye. 2 GOVERNOR ROMER: All opposed, no. 3 So adopted. 4 Now, we're going to have a discussion of NGA 5 legislative issues; Medicaid; gas taxes; and Education 6 2000. Then we'll have an update on some task force 7 agendas on Medicaid waivers, Indian gaming, and 8 welfare reform, and then we'll consider some proposed 9 policies on federalism and health care, and then we'll 10 be joined by Vice President Gore, or if we don't get 11 through that, we'll take up some of those after Vice 12 President Gore is here. 13 Now, before I get to these legislative 14 updates, I'd like to acknowledge the presence of three 15 White House staffers. All of the governors know them, 16 or will know them shortly; Marsha Hale, who is 17 assistant to the President and Director of 18 Intergovernmental Affairs, and Keith Mason and John 19 Hart,Deputy Assistants to the President for 20 Intergovernmental Affairs. They are key links for all I 21 of us to the administration, and we're very pleased I i 22 that they're her~ this morning. I • I • 23 I'd f1r$t 11ke to calIon Governor campbell I I 24 to give us a bri~f discussion of the status of I 25 the Medicaid waiVers. Governor Campbell. 1 '----------11----------i HICK~RSON & ASSOCIATES I (918) 584-7559 4 1 GOVERNOR CAMPBELL: Thank you very much, Mr. 2 Chairman. You have before you a proposed Executive 3 Committee statement supporting the results of nearly 4 six months' negotiations between the states and the 5 administration on health and welfare waiver 6 simplification. I understand that some very tough 7 talks have gone on to get to this point. Carl Volpe, 8 of our association, the National Governors' 9 Association, along with several of our state Medicaid 10 directors, have worked long and hard with Bruce 11 Vladick, of the Health Care Finance Commission and 12 Administration and his people. 13 We have not gotten everything that we need to 14 make the waiver process user friendly, but we have 15 gotten a lot, particularly in areas where 16 administrative changes can be made without 17 legislation. For instance, the administration has 18 agreed to the following: One, to seek a change in 19 attitude by increasing early consultation with and 20 technical assistance to states to help us in designing 21 and developing approval, a provable waiver of 22 proposals. Second, to assess cost neutrality over the 23 life of a proposed demonstration program instead of 24 year by year. Third, to approve waivers which test 25 the same or related policy considerations in more than HICKERSON & ASSOCIATES (918) 584-7559 5 lone state to make it easier for us to replicate 2 successful programs, something that we've all asked 3 for. Next, to speed up the review and the decision 4 process, and finally, to consider joint Medicaid 5 Medicare waivers and joint AFDC Medicaid waivers. 6 Now, what we have not come to closure on are 7 important legislative changes. The governors would 8 like to see a move to make it easier for us to move to 9 Medicaid under managed care. This is something we're 10 all interested in, and it would certainly be helpful 11 to have support as we seek this flexibility from 12 Congress. Nevertheless, substantial progress has been 13 made, and all parties have acted in good faith, and I 14 think it's appropriate for the governors to commend 15 the President for his willingness to work with us, and 16 Secretary Schellayla for this progress, while making 17 it clear that our work is not done. So I move that we 18 adopt -- the Executive committee adopt the resolution 19 that you have printed. 20 UNIDENTIFIED GOVERNOR: Second. 21 GOVERNOR ROMER: All right. Now, you all 22 have copies of this resolution in front of you. The 23 motion has been made and been seconded to adopt this 24 resolution. Is there any discussion? 25 GOVERNOR RICHARDS: Mr. Chairman? HICKERSON & ASSOCIATES (918) 584-7559 6 1 GOVERNOR ROMER: Yes. 2 GOVERNOR RICHARDS: I just want to say that I 3 think that -- am I doing the right thing? 4 GOVERNOR ROMER: Yes, now it's fine. 5 GOVERNOR RICHARDS: I just want to say that I 6 really am grateful to have the opportunity to have a 7 White House and President that's worked with us on an 8 issue that is fundamentally one that pervades almost 9 everything the federal government does, and it is so 10 good to have somebody who has come from our background 11 and understands our experience. I think this spirit 12 of cooperation both from the Department of Health and 13 Human Services and from the President is 14 unprecedented, and I enthusiastically support Carroll 15 Campbell's motion. 16 GOVERNOR ROMER: Any other comments? 17 Governor Carlson? 18 GOVERNOR CARLSON: Mr. Chairman, I would 19 certainly applaud the comments by the good governor 20 from Texas, provided we could say the same for the 21 united states Congress, which has done everything it 22 possibly could to block waivers. 23 GOVERNOR ROMER: Are we ready for a vote? 24 All in favor of this say aye. 25 GOVERNORS: Aye. HICKERSON & ASSOCIATES (918) 584-7559 7 1 GOVERNOR ROMER: Opposed no. 2 It's been adopted. 3 Governor Bob Miller, I'd like to calIon you 4 for a comment upon our gas tax concerns. Governor 5 Miller, are you here? 6 GOVERNOR MILLER: Yes, I am. 7 GOVERNOR ROMER: Governor Miller of Nevada. 8 GOVERNOR MILLER: The gas tax provisions and 9 the budget reconciliation law had two effects, as it 10 relates to the state, two primary effects. First, on 11 the more positive note, the 1990 budget agreement 12 included a five cent gasoline tax increase, of which 13 half was dedicated to the highway trust fund, and half 14 was dedicated to the general fund. We've been on 15 record before, during and since asking that the money 16 that was diverted be rededicated to the highway fund, 17 and that, in fact, will occur beginning October the 18 1st, 1995, two cents to the highway account and a half 19 a cent to the transit account. without that, th~re 20 wouldn't have been enough money to fully fund ice tea 21 in its three years should the Congress choose to do 22 so, there would have been an $11 billion shortfall. 23 On the less positive side of the ledger, the 24 proposal is that the gasoline tax be increased by 4.3 25 cents, none of which will be dedicated to the highway HICKERSON & ASSOCIATES (918) 584-7559 8 1 trust fund. I think that's an issue that we should 2 discuss in future meetings because it sets the 3 precedent, the same precedent we were concerned about 4 in the last budget agreement of diverting some highway 5 trust funds for other purposes, and it is one that we 6 have down on record in the past as being opposed to. 7 Thank you. 8 GOVERNOR ROMER: Thank you, Governor Miller. 9 We do not need to take any action on that, but I 10 just wanted to have that brought to our attention. 11 Let me -- was there any comment upon this 12 issue? Let me turn to our next issue. I'd like to 13 calIon Ray Scheppach for comment on other issues 14 arriving out of the reconciliation issue and the 15 budget agreement. Ray. 16 MR.
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