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 December 17, 1999

The Honorable William J. Clinton
President of the United States
The White House
Washington, D.C. 20500

Dear President Clinton:

The National Conference of State Legislatures applauds your efforts in working with Congress to complete work on the fiscal year 2000 budget. Fueled by unparalleled economic growth and compromise, the FY 2000 budget reflects sustained commitment to balancing the federal budget and reducing federal debt. It also provides necessary support for federal programs and services, particularly the intergovernmental partnership programs such as Temporary Assistance for Needy Families (TANF), the State Children's Health Insurance Program (SCHIP) and Medicaid.

The nation is within months of marking the longest economic expansion in U.S. history. Adherence to fiscal discipline in federal budgeting has played an instrumental role in achieving this remarkable feat. As you prepare your FY 2001 budget, I share your enthusiasm for the opportunities that such strong economic times offer. I also recognize the challenges and constraints that the current budget process rules and efforts to restore long-term solvency to Social Security will present.

NCSL fully supports a balanced federal budget. Yet, as NCSL suggested last year, we firmly believe that circumstances compel an upward adjustment of discretionary spending ceilings to fully maintain commitments to state-federal programs that have proven benefits to our shared constituents. With that in mind, the National Conference of State Legislatures urges your consideration of the following as you prepare your FY 2001 budget:

1. Maintain our shared commitment to welfare reform and children's health through full funding of TANF and SCHIP. True to your word, you have placed a high priority on providing full funding for both of these fundamental reform programs during the past two years. The benefits to our shared constituents provided through both of these programs are indisputable. We urge continued full authorized funding of TANF and SCHIP.
2. Resist efforts to reduce or cap state-federal entitlement and mandatory programs, such as Medicaid and child welfare. Reductions to these programs without concurrent statutory changes would shift costs for these programs to the states. I urge you to avoid arbitrary reductions in administrative match monies for Medicaid and other entitlement programs.
3. Restore full funding at the authorized level of $2.38 billion to the Social Services Block Grant. Over the past several years, the Social Services Block Grant has contributed disproportionately to efforts to balance federal spending. The $1.77 billion appropriated for this program in FY 2000 is woefully inadequate to meet the needs of the children and elderly most often aided by Title XX spending. The SSBG appropriation for the year is $134 million below its FY 1999 funding level and $605 million below the funding level agreed to in the 1996 welfare reform law.
   Reductions in the states' ability to transfer TANF funds to the program, passed as part of the TEA-21 agreement, will exacerbate the Title XX reductions. I urge you to recommend repeal of this reduced transfer authority. NCSL has long lauded the merits of the SSBG and has continually praised the flexibility provided to the states under the program. SSBG remains a model block grant that is a significant component of the state-federal partnership.
4. Increase funding for the Child Care and Development Block Grant. An increased investment in child care is essential to our shared commitment to addressing the challenges of welfare reform. Whether that is accomplished through programmatic increases, tax changes or a combination of both, families across the nation have made this a priority concern deserving our mutual attention and action.
5. Provide a comprehensive proposal for funding school construction. As we enter the new millennium, it is clear that many of our nation's public schools are inadequate to meet our school children's needs. NCSL urges you to put forward a comprehensive proposal on school construction as part of your FY 2001 budget that includes: 1) expansion of the private activities for which tax-exempt bonds may be used, 2) relief from arbitrage provisions, 3) establishment of a state school construction revolving fund, similar to safe drinking water funds, and 4) a state school infrastructure bank.
6. Fully protect the guaranteed funding levels set for highways, mass transit and public safety programs as set in the TEA-21 agreement. NCSL long sought to restore full integrity to transportation trust funds. We maintain that TEA-21 has restored confidence to the trust funds through the guaranteed annual funding that now accompanies them. I urge you to resist efforts to redistribute excess gas tax receipts away from the special transportation programs and core highway programs that these funds support.
7. Provide full funding for aviation programs once Congress has reauthorized them. NCSL is committed to the reauthorization of federal aviation funds vital the performance and safety of America's airports. I urge your support for H.R. 1000, for ensuring that aviation trust funds are used solely for aviation-related purposes, and for a continuing general fund contribution for Federal Aviation Administration operations.
8. Provide full funding for state revolving funds. The Safe Drinking Water and the Clean Water State Revolving Funds remain two of the most popular state-federal partnership programs among America's state legislators. These drinking water and clean water state revolving fund investments should be maintained at no less than FY 2000 levels.
9. Reject reductions in the Child Support program. Reducing federal funds will compromise states' ability to collect payments for children and will compromise our efforts to meet paternity establishment goals.

Mr. President, the nation's state lawmakers would welcome any opportunity to work with you throughout the FY 2001 budget and appropriations process. I am hopeful that NCSL's priorities are also yours. I urge you to submit to the Congress a budget that maintains commitment to individuals and families who are served by funding for essential state-federal partnership programs while also maintaining our shared commitment to the challenges and opportunities of the next millennium.

We appreciate your consideration of the views of the National Conference of State Legislatures. Please have your staff contact either Michael Bird (202-624-8686) or Gerri Madrid (202-624-8670) for further details and information.

Sincerely,

Representative Paul Mannweiler
House Republican Leader, Indiana
President, NCSL