Bill Clinton: “Well, I think that's one of the things the Governors have to do, to help us on. And you have raised a point that has…”

“Well, I think that's one of the things the Governors have to do, to help us on. And you have raised a point that has been almost completely absent from this debate in Washington because there's so much focus on the Federal investments and the Federal programs. The Republican alternative as compared to mine will have a bad effect on education in a direct way and in an indirect way. And I think most of the people covering this debate even have not thought about that. Directly, it will obviously cut our ability to invest in everything from Head Start to the funds we give to you for Goals 2000 to help promote reforms, to the apprenticeship programs, to college loans. But indirectly, you've made a very important point. Most of the funding for education in our country comes from the State and local level, and increasingly, States are playing a larger and larger role in school funding and in university funding. And if we cut Medicaid as severely as they propose to cut it--70 percent of that money goes to the elderly and the disabled--they will show up in the legislatures all across America. The pressures to avoid severe human hardship will be enormous, and therefore, the pressures on you to divert money that would otherwise go to education for the State level into nursing home care, into the care of the disabled, will be very, very great indeed. And there's been almost no discussion of this. So this could be a huge indirect cut in education as well. And I think most Americans know we ought to be increasing our investment in education. In the global economy it's one thing we can do to ensure a good life with a secure income for our people. And I would urge the Governors to focus on the indirect impacts of this budget as well as the direct ones, because that's something our citizens will understand if it's explained to them. It's something the press corps will understand and report if it's explained to them. But it's been almost totally absent from the debate so far. And it's a huge factor that has to be considered. [Gov. Howard Dean of Vermont supported the President's plan for its approach in dealing with Medicaid costs and asked the President to comment on the impact of the Republican budget plan on Medicaid.]”