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THE

RIpON FORUM

Contents VOLUME 36 ' NUM BER II • SUMMER 200J

Moving Forward ........................ .. ......... ........................ .... .... ....... 4 A R ipon Editorial

Safeguarding America's Meat ... ..... ...... ......... .................. ...... ........ 6 Dr. Catherine E. Woteki, Ph.D. , R.D.

A Ripon Interview with Jack Quinn A New Partnership .......................................... ... .... .... ...... .. ... ...... . 9 Ashleigh R oberts

A Ripon Interview with]. Dennis Hastert Earning the Majority ............................................ ... .................... 12 Ashleigh Roberts

2001 Rough Rider Dinner ..... .. .............. ......................... ............ . 16

Restoring the Majority: The GOP Challenge in California ...... .. ....................................... 18 Philippe M elin

A Ripon Interview with E. Clay Shaw,Jr. A Different Approach ................................ .... ............................. 22 A shleigh R oberts

New Democrats Move to the Middle ........................................... 25 AI From

Medicare Reform: Still Time To Get it Right .............................. ..... .... .. ............ .. .... 28 D eborah Steelman

'f'k RiJlt'" Forum ( ISN 0035-5526) is published quarterly byThe Ripon Society.

The Ripon Society isa n:sean:h and poJiqorganization. It is hcadquan en:d in \VashinglOn. D.C .• with National Associare members throughout the United Slates. Ripon is iupportcd by chaple r dues, individual contributions, and n:\'cnucs (rom ils publications.

Comments, opinion editorials .... ud Ictw "s 10 the m .... gazinc should be addres~d 10: The Ripon Forum, 501 C .... pitol Court, NE Suite 300. \Vashington. D.C. 20002 or may be tr:lIlsmi ltcd clc~tronicaUy to: [email protected]

]

Moving Forward Following Senator Jeffords' defection, leadership, unity and loyalty will be the keys to GOP success

he cover of our spring issue features a smiling Trent Lon

with his arms outstretched. The headline reads, MA Working Majority, The 50-50 Spli t." In the same issue,

published only weeks ago, the editorial noted a new sense

of maturity and unity within the Republican Party. It said:

"The Republican Parry is growing up. The backbench bomb throwers are gone, replaced by thin but determined

Republican majorities. The l07,h Congress exhibits a quiet maturity, marked with new confidence and a long over­

due sense of unity. Members are focusing mOfC on in­

dusion and less on the divisions that have derailed Re­

publican efforts in the past. ~

~Thc newfound Republican unity is a sign to the

country and the world that the Grand Old Parry is ready

to govern. Republicans have stnlggled long enough with

their message and their differences and it appears as

though the internal shakedown is over.~

uThe message is simple. When Republicans work

together, they can drive public policy. The diversity and

independence of Republicans makes unity a challenge,

but the 107'" Congress has proved it is possible. Adult

leadership in both the executive and legislative branches

will do much [0 res[Ore the public's faith in govcrnment.~

So, while eating edi[Orial crow, RF wonders what hap ­

pened to the adults.

Today, our hobbled Republican elephant remains deter­

mined, but the Democrats control the Senate and do so through

defection. Hoisting his banner of principle, Vermont Senator Jim

Jeffords shocked \·Yashington when he ..;reated a political fitult line

that tumbled his former colleagues intu a minority crevasse.

He said, ~ In order to best represent my state of Yermo nt, my

own conscience and principles I have stood for my whole life, I

will leave the Republican Party and become an Indepcndent.~

H owever, SenatOr Jeffords did not stop at becoming an

Independent. H e joined the Democrat Caucus. thus toppling

the former Republica n majority and deposing Republican

Chairmen. In effect, he became a Democrat.

Jeffords defection abruptly put an end to Republican con­

t rol of the Congress. It had been the fir st time RepUbli cans

controlled t he H ouse, Senate and White H ouse since Ike in

the 1950s. It lasted just five months!

The outlook for President Bush's agenda is dramatically

changed.

The Senate leadership and 20 committees. along with

chai rmen, subcommittee chairmen, staff, space and the agenda

of the Senate, all arc changed.

Ripon FONm • Summer 200 I

The Senate Republican leadership has taken it on the chin

for not being inclu sive and accommodating or even picking

up on the possibility of the storm clouds before the lightning.

The White House has been roundly cririciud for being out

of louch, arrogant and striking a defensive and aggressive tone

as opposed to being conciliatory to those not marching to Bush's drum .

As Nebraska Senator Chuck Hagel warned, M What is

debilitating for us is to have a leading moderate say what I

have witnessed is a dosed Parry that has no wlcrnncc for any other point of view. ~

For the record, RF has espoused the "big tent" theory of

Republicanism since inception. We should always be debating

changed his status to Independent, but remained in the Re­

publican Confe rence until the next election. He could have

indulged in an act of political heroism by resigning and run ­

ning as an Independenl.

Republican candidate Jeffords asked his colleagues to en­

dorse and campaign for him in Vermont. And surely Republican

candidate Jeffords did not miss the obviolls, that President Bush

would try to implement what candidate Bush promised.

In a Washington Pos t column, veteran political reporter,

David Broder opined, "A loner in temperament, Jeffords took

no one with him. "

Wrong. Jim Jeffords took all of his old Republican col­

leagues out and put his new Democrat col leagues in:

On the outs are many good

Ripon Re publicans: T ed

Stevens , Di ck Lugar, J ohn

Warner, Pete Domenici, Arlen

Specte r, Pat Roberts, Orrin

H at ch, Olympia Sno\\le,

Chuck H agel, Susan Collins

and Mitch M cConnell not to

mention a host of other com­

mittee and su b -committee

chairmen.

"Finally, party switchers are not new to politics and doubtlessly there will be more public officials who will do so out of principle and conscience, not to mention self-preservation. RF will always stand in admiration for those who put principle first. However, Senator Jeffords' decision was one small step for principle and one giant step for a Democrat majority." On t he ins arc Robert

Byrd, Tom Harkin, Carl Levin,

Paul Sarbanes, Kent Conrad,

Fritz Hollings, M ax Baucus, Pat Leahy, Chris Dodd , Ted

Kennedy, and of course, J im Jeffords.

how ro broaden our Party, in order to be a majority party. The

debate must allow and accept dissent, consider new ideas, build

coalitions, respect each other, and tolerate each other's views.

But, it is not enough to allow differing views. VYe must

respect those who hold them, even as we ask respect for our­

selves. Vvc must also consider their views, even as we expect

consideration of our own.

Obviously, Jim Jeffords did not feci the Republican lead­

ership afforded him toleration or respect. I-Ie did not feel com­

fortabl e in the big tent. He said, ~ ] was not elected to thi s

office to be something I am not. .. l have changed my party

label but I have not changed my beliefs ."

In a practical sense, Senaror Jeffords did much more than

that. Hi s act of conscience involved far more than standing

up for hi s beliefs. It caused a national pautical realignment. When

he tllrned off the lights in his Republican office to light a candle

of conscience, he turned off the majori ty lights in the offices of all

of his former colleagues. He not only changed his party label, he

gave the Democrats control of the Senate.

Following precedents of other switchers, the Senator from

Ve rmont could have made odle r choices. He cou ld have

Ripon Forum • 5ommef" 200 I

These are dramatic changes. As a result, the need for heal­

ing and unity is stronger than ever. Let us now fully real ize

the challenges that accompany peace in th e big tent. RF urges

our Republica n le adership and the White House to put th e

words respect and tolerance into deeds.

Finally, party s\\litchers are not new to politics and doubtlessly

there will be more public officials who will do so out of

principle and conscience, not to mention self-preservation.

RF will always stand in admiration for those who put principle

first. However, Senator Jeffords' decision was one small step for

principle and one briant step for a Democrat majority.

That being said, the Republican Party may have finally seen

the last of the backbench bomb throwers. While Ripon is disap­

pointed by the recent turn of events, it is our hope that the COP

can now begin work on an agenda that encompasses the entire

Party rather than focusing on concessions that

only please its fac tio ns.

The message is still the same, if any­

onc is willing to li stcn.

5

Safeguarding America~s Meat Strict regulations protect the nation's beef supply against a new and dangerous disease

Ily Catherine E. " \ltcki, ')h.Il., 11.1).

ncreasmg rcpo rt s of Mad Cow

D isease arc making many Americans

question the health and safety of the

nation's bee f supply. M ad cow

disease, technically known as Bovine

Spongiform Encephalopathy o r BSE, is a

vexing problem to health and agriculnlrc

in several European countries.

In the 19805, SSE infected catde

herds in Britain and then spread to other

European coumries. As a result, leading

government authorities have slaughtered

large numbers of carrIe and incinerated the

remains to prevent its introduction into the

food supply. W hi le it has yet to appear in the

United State s, new developments arc

alarming. Eati ng meat from SS E- in­

fected cattle is lin ked to a new, invari­

:ably fatal brain di sease of young men

and women call ed new va ri ant

Creutzfeldt -Jakob Di seas e {vCJ D }.

About 100 people have d ied from the

6

new di sease, and public health expe rts

are carefully monito ri ng fo r new cases

to determ ine how many people this new

d isease wi ll ult imately infect.

Not knowing for certain how the in­

fectious agent is transmitted, he:llth au­

thorities are moving to prevent blood do­

nations from people who lived in the

United Kingdom for more than a short

period of Time and requiring the use of

disposable surgical instruments for some

operations.

H eavy media coverage of the HSE

epidemic in British a n tic and the related

vCJD epidemic in people has led many

Americans to ask themselves if the same

could happen here, what p recautionary

steps are being taken and if more should

be done.

A NEW DISEASE Scientists find BSE fascinating. Un­

like most diseases, it's caused not by bac-

teria, a vi rus or a parasite, but rather by a

mis-shaped protein. If the currently ac­

cepted hypothesis o f how BSE arose

pro\'es to be correct, it 's a disease that has

jumped from one species {sheep} to an­

other species {cattle} to a third species (hu­

mans).

For a human disease to originate in

animals is nOt unusual. That happens with

the annual flu epidemics, and animals may

also have been the source of the virus that

causes H I V / A IDS. Some experts predict

that 70 percent of the new diseases that

will affect people in the fururc will arise

from o rganisms that now infect animals.

BSE causes progressive and fatal at­

tacks on the brain and nervous system. But

the disease is d ifficult to diagnose because

there is no existing test that can be used in

live animals. Much of what the scientific

community knows about the fa mily of

BSE- like diseases stems from the work of

D r. Stanley Prusiner. For discovering the

cause of this new disease and the elucida­

tion onts mode of action, Dr. Prusiner was

awarded the Nobel Prize in 1997.

BSE belongs to a family of diseases

that arc called Transmissible Spongiform

number continues to increase as new cases

are reported in other Europe:m coumries.

To contain the spread of the disease, gov­ernment authorities require that the entire

herd of cattle be slaughtered when a new

BSE case is identi-

"The disease takes years to develop, both in cattle and in people, and there is no reliable blood test to

fied an d the car­

casses be incine r­

ated so no poten­

tially infected meat

can make its way

determine infection."

Encephalopath ies or T SE's. The TSE's

arc caused by priollS, which are narurally

occurring protei ns in the cells of warm­

blooded animals. Unlike bacteria, vi ruses, and parasites, TSE-causing prions contain

no DNA or RNA. Although the priom

replicate, they do nOt do so in the same

ways as pathogens. T he pathogens of vi­ruses duplicate their generic material and

wrap it in a protein coat while the patho­

gens of bacteria and parasites are wrapped

within a new cell.

S ut in the case oITSE-causing prions,

once the mi s-s haped protein is

present in the body, it acts as a

template for other prion proteins to refold

to the abnormal shape. Once that occurs,

the protein can't change back to its original

shape to perform its functions within the

cell, and as more abnormal prion proteins

accumulate, nonnal cell functions begin to

break down.

In the brain, holes begi n to form long

before changes in behavior become appar­

em. The name "spongiform encephalo­

pathies" refers to the way infected animal

brain tissue looks - like a sponge. Prions

arc almost impossible to get rid of because they arc resistatu to the sterilization tech­

niques usually used to kill infectious or­

ganisms - heat, acid and radiation .

The fi rs t BSE case was diagnosed in

Great Britain in 1986. So far, about

190,000 cattle have been affected. T his

Ripon Forum • Summer 200 I

into the human

food supply or be rendered into animal

feed and continue the cycle onnfection.

The first ten causes of human vCJD were described in 1996 and linked to the

consumption ofBSE-infectcd meat. Since

then, more than 85 people ha\"C been diag­

nosed in the UK, Ireland and Fr.1I1ce. The

disease takes years to develop, both in cattle

and in people, and there is no reliable blood

test to detennine infection. As a result, pub­

lic hcalth and agriculrure officials have put

into place strict measures to protect their

publics and their agricultur.tl economies.

PROTECTIVE STEPS In the United States, both the De­

partment of Agriculnlre (US DA) and the

Department of Health and Human Ser­

vices (HHS) acted to protect human and

animal health. In 1989 when the magni­

tude and seriousness of the British epi­

demic became apparent, USDA prohib­

ited the importation of cattle and other

ruminants, and most ruminant products

from coun tries affected with BSE.

Th roug h its Anima l and Plant

Heahh Inspectio n Se rvice (APHI S), US DA tracked down 496 cattle from

the UK and Ireland that were imported

between 1981 and 1989 when the ban

went into place. On ly four out of the

original grou p arc still alive and they

arc under quarantine. None of the or igi­

nal group showed evidence of BSE.

In 1997 APHIS exten ded the ban

on importing live animals and rumi nant

products to all of Europe until they

cou ld complete a thorough risk assess­

ment. US DA and the livestock indus­

try have developed an active BSE edu ­

cation prog ram for veterin ar ian s,

slaughterhouse and market owners, and

others associa ted with the livestock in­

dustry. US DA inspectors in slaughter

plants exami ne incoming animals for

neurologi cal signs and symptoms of

BSE. Any suspicious animals are taken

7

away for autopsy and their carcasses are

destroyed. To protect human health, the Depart­

ment of Health and Human Services put

con trols on ruminant-derived products

that go into drugs. Blood centers arc re­sponding to FDA's requirement to exclude

donors who lived in places where fiSE and

vCJ D have been identified. FDA recently

surveyed animal feed manufacturers to

determine the level of compliance to its

ban on feeding ruminant products to ru­

minants. The Centers for Disease Con­

trol has instituted an active human sur­

veillance program for vCJ D. To date, these collective actions have

proven to be effective. No cases of BSE

or vCJD have been detected in the US.

HOW SAFE ARE WE! The protective measures have sealed

off our borders to importing live animals

from areas of the world wi th BSE.TIley

have largely ceased the feeding of meat, blood and bone meal to ruminants, which

is the means of propagaring a prion-caused

epidemic. The measures have stopped the

import of beef from BSE countries and

taken steps to prevent human- to-human

transmission through blood and blood

products. But is it enough? In a recent editorial in the weekly

8

journal Sti(flu, Bernadine Healy, President

of the American Red C ross, argues that more needs to be more on the human

health side. Without a simple and reli­

able blood test for screening both people

and cattle, the safety

emerge, so il's extremely important that

the ruminant feeding ban be scrupulously

followed to prevent propagating the disease if it should occur.

USDA needs to continue its periodic

retraining of veterinarians working in

slaughter plants so they will be able to

detect the abnormal behavior associated

with BSE-infected cattle. At the mo­

ment, the prevalence of prion disease in

catt le is not known when cattle are

slaughtered for human consumption. But when a reliable test becomes avai l­

able, USDA should require its usc in

routin e market surveillance for infec­

tious di seases and harmful chemicals.

In his Nobcl laurcate address, Stanley

Prusiner comments on the 'Ot,",,,,, p"h of l the scientific investigation of the rnmilial

fonn of C reunfeld-Jakob disease. He also

discusses the enormous resistance from the

of our blood hanks,

tissues for transplan­

tation, or our food

supply will not be

known, she says.

Dr. Healy wants

to see more funding

dedicated to research

"The protective measures have sealed off our borders to importing live animals from areas of the world with BSE."

than the current SI4 million in prion re­

search supported by the f ederal govern­

ment last year. She argues that the US.

should also expand its surveillance of vCJD and BSE and establish tissue banks like

the UK. and Swit"LCrland are doing to Test

fo r the presence of prions in the popula­

tion.

On the agri culture side, BSE­

prevcntion steps mUSt be followed

and thc import ban on both animals

and meat products should stay in place. USDA inspectors need to remain vigilant

against the potential for illegal tr.illic in

live animals and meat across the northern

and southern borders and through U.S.

po rts. Scient ists don't ru le out the

possibility that S SE could spontaneously

scientific community to the idea that a pro­

tein is indeed an infectious agent in CJD

and several other diseases of animals and

people that were originally attributed to ~slowviruscs. ~ Understanding how the prion

protein folds and refolds into a shape ca­

pable of causing disease will help scientists

to understand other degenerative diseases.

Although the sciemific fascination

with these exotic diseases will continue,

pubic health, safety and education mea­

sures must continue to safeguard the

nation's beef supply and prevent fur- r."I ther spreading of this new disease. ....

Dr. Cathlrinl E. Woflki, Ph.D. , R. D, is fhl

Former Undu Suutary for Food Safity af

fM U. S. Drparlmmt of Agricullllrl.

A New Partnership US, RepresentativeJack Quinn (R-NY) Builds a Labor-GOP Dialogue

lIy Ashlcigh Ilobel'IS, 1'0,,"", Edi lor

ongressman jack Qumn is an example of the "big

ten'" Ripon embraces, A Pro-Iahor Republican,

Congressman Quinn is not Jour typical M ember

oj CongreH, bul he is (1 Parly loyalist who

staunchly defends his (omli/uents in New York.

~ -" •

Wh ere many people could let diffirences divide them,

Congressman Quinn worksfor unity tlnd sees (o mpromise

as progrelS. Often refirred to as a Reagan R epublican, he

is amiable (lnd po/itically shrewd. He began his career in

Ccmgrers with a stunning upset in 1992 and has

(ontinued to defeat Democrat efforts /0 unseat him. Part

of his fUCC(SS stems from his own, independent leadership

style and hIS ability fa reach ali t 10 labor groups. [n the

!-louse, Quinn is also known for leading the figh t to

In(reau !lllfllmum wage. On May 17, 2001,

Congressman Quinn talked with the R ipon Forum

~~---------------------------" ~ O:m~JSmanJa(J. Qllinn diJrossD Mw Yoill30th DiItrictwith RF Editor Ashkigh RWerts.

about some of the challenges in the 107'· Congress Imd hif strategy

for r/anding by the people of Buffalo and supporting Bush's

legislative agenda.

RF: Congress man, you are a well-known Republican but you don't represent a typical Republican district. Can you describe

your constinlency?

Congressman Quinn: As a marter of fact, I represent a typical Dcmocratdistrict. It's threc to one Democrat. Buffalo, New York,

is one of the most highly unionized cities in the United States. It

is 29 percent unionized . Even when union numbers arc going

down nationally, Buffalo numbers remain at 29 . But it is a blue­

collar conservative district more than it is Democrat or Republi­

can.

RiJXlfl Forum • Summer 200 I

RF: In your last election , you received 67 percent of the vote.

How does that happen to a Republican in the mosr highly union­

ized district in the country?

Congrtssman Quinn: My staff and I work hard. r ve been home

every weekend for eight years and we vote the district. It doesn't

always make some in the Republican leadership happy, but we

think it is what the people of BuffaJo want and we've been fo rtu­

nate to be returned a few times.

RF.. Labor groups have traditionally been strong supporters of

rhe Democratic Parry. Do think the Republican Party has a

chance to change that?

Congrtssman Quifm: Absolutely and posi tively. I am a perfect ex­

ample of that. The last time out, 1 was endorsed by the unions.

9

They financially support me and are politically ac­

rive. If the Republican Party is interested, I think

there are all kinds of opportunities.

RF: What is the core aspect of the Republican

message that appeals to them?

"When we talk about cutting taxes, balancing the budget and people keeping more of their own money, working families understand that."

COllgffssman Quin,,: I have said to the leadership that I have known here - Bob Michael, Newt

Gingrich and now Denny Hastert. I have told

them from the start, if they will let me deliver the Republican

message the way that I think it needs to be delivered, we will be

fine.

For instance, I can go to the floor of the United Auto Work­

ers (UAW) hall. When we t:llk about cutting taxes, balancing the

budget and people keeping more of their own money, working

f:1milies understand that. They agree with that.

The difficulty, many times, is how the message is delivered

here. I need the flexibility to deliver that message myself. It

cannot be the gospel according to Newt Gingrich. It cannot

be the gospel according to J.e. Watts. \Ve just cannot deliver with the hard edges. The problem is not the message. It is

deliverable and it works, ifi t is correct.

RF: Being pro-labor and the Co-Chair of the Republican Work­

ing Group on Labor can put you at odds with the President. How

do you support your President and your constituents?

CongrtSsman Qui",,; Well, it has not put us at odds often . But it

has only been five months, so it is likely that it will. But I will tell

you, I have to vote the people I rcpresem back in Buffalo. And I

think the people in Buffalo arc reflective of the majority of the

people in the country. If you notice how they run these cam­

paigns, Republicans nUl to the right in the primaries and the

Democrats run to the left. But they can't wait until it is over so they

can get back to the middle, which is where I think Buff.tlo stands.

So, when I have to do that, if it is in opposition to our Presi­

dent, so be it. But, he will know ahead of time where I am and

10

why I have to be there. It is very, very important to let them,

either my leadership or the President, know when I am not with

them. T hey have to know early and they have to know why.

RF: Congressman, you have also tried to reach out to the Ad­

ministration and point out possible areas of conflict. Your meet­

ing with the new Labor Secretary was canceled wi th fi ve hours of

notice. I-Iow did you feci about that, and what kind of a message

docs that send not only 10 Republicans, but also to labor groups?

Congressman Quin,,: I don't think it sends any message except

that the Labor Secretary is very busy early in the administration.

I don't think they even have a full staff over there yet. So, we are

willing to give her and the administration Ihe benefit of the doubt.

We are very anxious to re-schedule the meeting and we have called

and suggested some alternative dates.

RF: On May 8, 200 I, you and several other Republican Mem­

bers met with II intern atio nal uni on presidents including

John Sweeney of Ihe AFL-CIO to discuss ways to work together

in the 107'" Congress. Do ),ou think the talks were successful?

Congressman Qui,,,,: It was very productive and positive. T he

meeting was an extension of meetings that have been going on

for about fou r or five years on a smaller scale. They arc usually

with two or three union presidems and maybe four or five Re­

publicans. There is no doubt that the meeting last Tuesday was

the largest group ever assembled. I think there were 11 interna­

tional presidents and 17 Republicans.

Ripon Forum • Sommer 200 r

The meeting was not positive on an issue or vote basis. It

also wasn't productive in the sense that one would say, some Re­

publicans convinced the AFL-CIO to endorse them. But it was

productive from this standpoint, we arc communicating. We arc

talking with each other. That is the key. The union movement

understands the Republican point of view and Republican Mem­

bers can understand what it is that the Union members need.

RF' President Bush issued an executive ord er in February

effective ly banning the use o f Project Labor Agreements (PLA's), which are contracts between a building t rades council

and constructio n project owners or man agers. He has since

amende d that orde r, now allowing for them on fed eral

projects. H as he gone far enough?

Congressman Quilln: It is a good start. I believe he has to go

further. For instance, the next logical step for him might be to say

that any project, any approved federal project, ought to allow

PLA's. That would be the result of a letter we wrote and we had

33 House members sign it.

RF: O bviously, there arc some differences between your views

and the administrat ion. , Vhat is your strateb'Y for handling these

diffe rences without di\1ding the party?

Congressman Quinn: One of them is the communications effort

we are making with the Secretary of Labor to allow as much of a

~heads up~ in advance. Our strategy is to let our own Administra­

tion know early where we have some heartburn and where we are

going to have problems.

Many of us, maybe 20 to 30 Republicans in the House of

Representatives, already have voting records on labor issues.

Project labor isn't new. M inimum wage isn't new. Davis­

Bacon isn't new. There is the comp-time issue and paycheck

protection. None of these arc new issues. We have all had votes

on this before.

It will be very difficult for Republican Members to change

their votes justbccause there is someone ncw in thc White House.

h will be for me. Congressman Frank Lobiondo from New Jer­

sey is the other Member that works with me on many of these

issues. We're interested in letting the White House know what

those issues arc and how we can work together.

RF: Can you tell me a little bit about your bill 10 increase mini­

mum wage?

Congressman Quinn: My theory last year was to get a deal and we

didn't. It's a balancing act. How much of a tax incentive can you

add and keep the raise at a dollar? You try to bringas many Demo­

crats with the increase and as many Republicans as you can on

the tax side. That fell through last year.

Ripon FOf\IITl • Summer 200 I

The Democrats immediately raised the stakes to a dollar and a half once we got a new President and Administration. I essen­tially took the old bill and filed it so we would have a backstop. We are gcning another one ready at a do!lar to file next weck.

The talk is that it will be the vehicle to get any tax cut done.

And they arc talking capital gains now. I think that will drive a lot of Democrats away, whcther it's a buck and a half or not. Capital

gains will drive them away. It would have to be smaller. You have

to pay attention to the small businesses out there, [he restaurant

owners and the convenience store owners. In my opinion, if they

try to do capital gains on a minimum wage bill, it will drop all of the Democrats off the bill and some of the RepUblicans.

RF: As a fo rmer teacher, what do you thin k about the Education

bill that is on the floor this week?

Congressman QlI inn: I think the Education Bill is pretty sound.

think there are some odds and ends that we do not like. But J am

hearing from the people back home in the education business­

teachers, administrators and others - that they like it. ' Ve have

some spruci ng up to do when we are through with everything,

but basically it is pretry sound. I was talking to Congressman

Mike Castle about it today and we think we arc okay. It is [J not perfect, but it works.

VITAL STATS: JACK QUINN

Birth Date: April 13, 1911

Party: Republican

Political Philosophy: Pro-labor, moderate Republican

Hot Issue: labor

Home: Hamburg. New York

Family: Married 10 Mary Beth M<And"".; 2 child"n

Religion: Catholic

Education: Si ... CoIIego, B.A. (1973); S.U.N.Y BufbIo, M.A. (197B)

Professional Experience: Congressman. U.S. House of Represent1tives (1992.present); Hamburg Town Supervisor (1983· 92); junior High School Engli.h Teach" and Basketball, football and Track Coach, Orhard Park Central School (1973-19B3)

Web Address: www.house.gov/quinn

II

Earning the Majority

j/h the narrowlst of margins in fhe U.S. HouSt,

(Ind the US. Smale n(JfJJ in Democrat hands,/~

po/i/iral allalyus would have prdieted Re/JUh/ieam

in Congrm are ruaring paHage of Pmident BUlhs two top legislative priorities, lax relief and ((Iu{a/ion,

within six months. But aflu msiam of partisan gridlocR, the United

Statu House ojRepmmlaliw! is makingprogms. On May 17, 2001

The Forum was able 10 Illill with the man behind the sunes, Speaker J Dennis Haster/.

Although hI! was 'fJirtllally unkn()'U)11 to tm general public in De­

umber 1988, CongrtIlfllll1l Hastert was well known in the Houufor

his ability 10 negotiate tlt/iwlt issues and rtoch a (omemus. As the 51"

Sptaktr of/he H ouse oJRepmentativls mars the middle ofhis montl

lerm, he sti/l does not SUR the spotlight. Nrun-flultsS, public attention

has jrxuud on his ahilily and effirll10 work through partisan diffu­

mces and pass I~gjslation.

RF: Mr. Speaker, I)olitical observers have said you came by your

leadership position by circumstances not of your own plan or de­

sign. You, yourscl( ha\'e stated that you did not seek the Speakership.

Wedo not hearthat talkduring this session. What haschanged?

Sp~ak~r Hastert: Well, I've already said I accepted this job and I

accepted it with the responsibility that I would try to accomplish

key goals. First of all, get things done. I think we needed to stop

the rhetoric and start to produce legislation for the American

people. We did that.

12

SptaJ~r flasftrt lalh aboul the 10716 Congms with RF Editor Ashleigh Rob~rfs.

There were a lot of doubters out there who said we would

never be able to keep the majority, but we were able to produce.

Ripon Forum • 5o.Jmmer 200 I

In the I-louse, we did a health care bill, bal­

anced the budget and paid down the debt. We actually preserved Social Security lind passed

a tax cut. There was a pharmaceutical drug

bill that we did on our side and a patient bill

of rights that we did on our side. So, Repuhli­

ClIns were able to go home with a solid legis­

lative record and talk about those things.

That was my agenda and my plan. And, we

are going to do it again. People arc already s,'l)'ing

that we cannot keep the majority. We say" .. e have

to erun it.That is wh)'\vc need ro finish the educa.­

cion bill, provide tax relief and make some changes

in our mde policies. We want to do a patient

bill of rights again. We also want to do a phar­

maceutical drug bill, get it done and get it signed

so we can take those legislative accomplishments

on the campaign trail and beat the odds.

The historical odds say that in the first mid­

term election of a new President, the party

of that president loses Memhcrs. I think

we can buck those odds. To do it, you have to

be aggressive and pass legislation . You must

show that you can make a difference. You have

to earn your way.

Second, you must build the grassroots,

raise the dollars for Members 10 run and fo­

cus on campaign basics. You cannot be lack:.­

daisical, sit back and expect the seated Presi-

dent to win it for YOll.

RF": Despite the narrow margin of Republicans to Democrats, House Republicans have been able to move President Bush's top

legislat ive goals ;n regard to tax relief, the budget

Photo by Man" Tamil

RF: Let's assum e the tax relief and educa­

t ion bills a re eonfereneed and th e Presid ent

signs both into law. What is next for the Re­

publican Co ngress?

Speaker H aslerl: We have what I call the

'Three E's' - the economy, education and

energy. With the economic issues, the tax

bi ll is probably the most important piece.

Paying down the debt is another piece. We're

going to do an admirable job on that in this budget. We have set a goal benveen four and

five percent of growth. It will take hard work

to keep that. T he appropriations bills can­

nOt be commandeered by somebody in the

H ouse or Senate who will push that num­

ber over the top. T he other important presi dential ini­

tiative is education and it is on the legisla­

tive front burner right now. After those two

issues are concluded, it is crucial to begin

work on a long-term energy plan for this

coun try. In addition to the T hree E's, there

arc also some trade issues that need to be

addressed. The President needs to get ap­

proved trade authority. AU of these issues

affect the daily lives and pocketbooks of

Americans and they are all out there and

ready to roll.

RF:There has bee n a big change in th e White House in terms

of style, to ne and policy goals. What changes have made you r

leadersh ip responsibiliti es eas ie r?

and now education. How has the leadership been

able to accomplish these goals?

Speulur H asla l: It 's nOt just the leadership. Our

members have really pulled tOgether quite well. Re­

publicans have strong beliefs in our abig tent" pany,

but both the moderates and the conservatives have

"Republicans have strong beliefs in our 'big tent' party, but both the moderates and the conservatives have committed to a

committed to a common agenda and we have been

able to get things done. They have both sacrificed

for the common good.

common agenda and we have been able to get things done."

Nobodywould be benefited, at least in our Party, if we couldn't get things done and lost our ability to hold the

majority. It has hcen a common effort of everybody working to­

gether to keep this majority. People have sacrificed, been very

cooperative and worked hard to get thinb>1i done.

Ripon Forum • Summer 200 I

Spealltr Haslerl: Since being in the majority, the idea was to

pass legislation and then posture ourselves to get something signed at the other end of Pennsylvania avenue. Obviously,

with a President of your own party, it makes it a lot eas ier.

13

In the House of Representatives, I always feh

like Republicans were going back home with 220

little snare drums trying to get our message across

the country. But we were competing against the

White House's bass drum and the power of the

bully pu lpit.

At least now, we have harmonized what we are

saying. Everything Republicans say here is echoed

by the White House and vice versa. That really helps get the message out.

RF: Have there bee n changes in th e Admini stra­

tion that make your leadership more diffi cult ?

Speaker H alterl : I am saying this in a kind way. It used to be that anytim e you didn't agree with the

President you could lambaste the Democrats and

say that the Pres ident was ill advised. Today, dis-

agreeing with the President creates a whole rift in the Party.

So, what has to be done can be reaUy difficult.

There were a lot of issue s on the edu cation bill

where so me Republi can Members really didn't

agree with the President, Yet, you had to keep a bi-partisan

bill on track, keep Republicans happy and keep the President happy. It tends to expand your job description a little bit.

RF: You constantly travel the country on behalf of Republican

candidates. \ /\fhat is the main theme of your remarks?

Speaker H aslerl: I t changes somewhat as time and issues change.

But if we pull together and work together, we can get things

Sf¥dff l1aJUrl t1ullin~1 biJ Irrislaliw pis wit" RF Editor Ashltigh RDlMrll.

Democra tic leade rship and what is yo ur assessment on di ­

visio ns wit hin th e Republican ra nks in th e H ouse?

Speaker H aSlerl : There are some Democrat leaders that

get al ong with re ally well. Othe rs go under the premise

that if they help the Republican s get anything done, it

make s it harder for them to take back the majority. So there

is a rift or harsh partisa nship and sometimes you wi ll see that. It is visible in the H ouse and the Senate .

But my view is that you have to reach across the aisle .

You have to tone down the rhetoric to get things done .

And, there arc some real things you can do on a biparti san

basis. But if the rhetori c is filled with political or parti san

"In the House of Representatives, I always felt like Republicans were going back home with 220 little snare drums trying to get our message across the country. But we were competing against the White House's bass drum and the power of the bully pulpit."

ve nom, you arc never go ­

ing to get anybody o n

board with you. That I S

true fo r both parties.

RF: The Democrats are

well unit ed in oppositi on

to the Rep ubli ca n

agenda. Ca n yo u keep

both th e moderate a nd

done for the American people. Getting things done gives us the

ability to own this place, as far as a majority is concerned. When

those things stop gening done, Republicans are at great peril.

So, it is always kind of a pep talk that says let's get things done. Let's move forwa rd.

RF: Si nee th e Newt Gingrich days, people don 't hea r as

mu ch about the Republi ca n Revo luti on or par tisan acri­

mony. Two qu estio ns: What is your relationship with the

co nservative Republi ca ns united to th e extent that they will not de rail the President 's agenda?

SpeaRer H aslerl: There are two situations. The H ouse is

one situation and the Senate is another. In the House, ou r

M embers have reacted very well. They know that we need

to stay together and if we don't stay together, we cannot

move our agenda. If we don't move our age nda, we don't

keep the majority. It 's that si mple.

Ripon FOI"Ufll • Surrwner 200 I

"That is just my nature. I try to get things done. But I am very reticent for anybody to put me on a pedestal and make an example of me. As soon as they put you on a pedestal in this town, it gets easy to get knocked off. I just want to keep this ball rolling. We have successes because Republicans work together."

ti me. T here is no magic wand

that you arc going to wave and

be able to solve the problems

caused by eight yea rs of en­

ergy neglect. I go back to

En e rgy Secretary B ill

Richardson's comment. ~they

were sleepi ng at the switch.~

You can't fix this thing ove r

night. It took eight years of

no energy pol icy to come to

fruit ion.

RF: Many political observers arc beginning to give you credit

for a leadership style that has prod\, ced legislative victori es

fo r President Bush a nd th at you arc coming in to your own as

an e ffective Speaker. A ny co mme nts?

S~aker Hasla'f:That is just my nature. 1 try to get things donc.

But I am very reticent for anybody to put me on a pedestal and

make an example of me. As soo n as they put you on a pedestal

in this town, it gets casy [0 get knocked off. I just want to

keep thi s ball rolling. We have successes because Republicans

work Together.

Tlcrc is not anyone person who is respon sible, and I am

very hesitant to take any of that responsibi lity. I will take

the responsibility when we have problems. But, ou r success

is because a lot of people have worked together to get things

done. I have a g reat leadership team. From the whip to the

majority leader to J. C. Watts to all of the people who work

together to get out our message and get things done. There is

a lot of credit to go around.

RF: In regard [ 0 [he nation's g rowing energy problem, what is

[he Republican Congress going to do?

Spealur Hastert: Probably the same thing the Republican Senate

is going to do. There arc three phases. Some things can be done

right away. We don't just need to talk about conservation; we need

to work on it.

There arc some things we can do by adm inistrative fiat. In

regulation fo r instance, there is two-thirds unused capacity at some

of the western dams. We can open that up, but you have to deal

with some water rights to do it. We can also address California's

peaking problem. There arc other issues out there for immediate

conservation. I drove a gas-electric car. It has just as much zip

and uses 50 percent less fuel.

Those arc the types of things we need to take a look at. Some

of the proposals arc immediate. Some of them will t'd.ke 18 months

to two years to put in place and some of them will take a long

Ripon F()I'"UIl"l • Surrvncr 200 I

RF: If YOIl had two wee ks

yo u could take off and d o any thing you wanted to d o, what

wo uld it be?

SpeaJ:~r Hast"t: Two weeks? That's easy, I would go home. m Asbleigh Roherts is the editor of The Ripon Forum.

VITAL STATS: J. DENNIS HASTERT

Birth Date: )'"'''Y 2. 1942

Party: Iopublica'

Political Philosophy: A pragmatic conservatin

Hot IHue: A Iopublica, majority

Home: Yomil~. lIIinoi.

Family: ""ried 10)", 1. 111; 2 child .. ,

Religion: Pro", ... "

Education: WbuIOll CoIiOgt. 8J. (1964); No""om lIIinoi. U,innity. "J (1961)

Professional Experience: Spukor. U.S. H .... of

Iop""'''li", (Im·pro ... I); Cong"""". U.s. H .... of !epmon ....... (1986·pmotIl); ! .. " Iop ............ lllinoi. Gonml Assombly (1980-1986); High School Hi.tory T_ and Wro.di,! C .. cII. Yml~ High School (196S·1980)

E·maIl Add ..... : [email protected] ... !"

15

Ripon Holds 2001 Ro

he Ripon Society proudly announced the 2001 Rough

Rider Award recipients at its annual dinner on May I.

2oot, in Wash ington, D.C. T he awarclees included

Health and Human Services Secretary Tommy G.

Thompson , Se nator Don N ickle s (R- Okla.),

Congressman Michael C. Oxlcy (R-O hio) and Congresswoman

Nancy L.Johnson (R-Conn.).

~ h is with great honor that I prescnt you with the 2001

Rough Riders,~ said the Honorable Bill F renzcl, President of the

Ripon Society. ''Tonight's awardces represent the broad spectrum of the GOP and highlight the basic themes that unite our Party"

T he Rough Rider award is named after the nations 26'~

president, T heodore Roosevelt, and his beloved Rough Riders.

About 500 pcople attended the event, which was Co-Chaired

by Senaror Chuck J-I agel (R-Neb.) and Congressman Bill T ho­

mas (R- N. M .).

Each honoree received a framed sabre and scabbard as a

symbol of the courage, conviclion and perseverance that marked

President Teddy Roosevelt's career.

"A replica of Teddy's CoI.v-alry sabre was presented to these

modem Rough Riders who have nOI been afraid to tackle the

most difficult problems confronting our nalion,~ Frenzel said.

"Often in the face of adversity. these leaders have not faltered,

nor abandoned their pri nciples."

F renzcl said they were worthy successors to the leadership

mantic of a president who understood the relationship of poli­

tics and heroism, and onc time described it this way:

~The credit belongs to the man who is actually in

thc arcna; whose filce is marred by dust and sweat and

16

By Ashlcigh

Ripon Forum • Summer 200 I

Rider Awards Dinner rOI'l"11 Editor

Ripon Forum • Summer 200 I

blood; who strives valiantly; who errs and comes short

again and again because there is no effort without error

and shortcoming; who does actually strive to do the

deeds, who knows the great enthusiasm, the great devo­

tions. who spe nds himself in a worthy cause. " The Rough Rider Awards Dinner was inspired by these

words and the dynamic vision of Teddy Roosevelt, a leader

who re-energized not only his parry but also the nation with

strong beliefs about capitalism, conservation and democracy

in the early 20,h ce ntury. l oday, Republicans still believe most

Americans support the ide:us of a smaller, more efficient and inclu­

sive governmcnl. Congresswoman Johnson, who was honored for her work on

health care, said the sabre and scabbard would hang proudly in

her office. "I am honored that my work as a member of Congress was

considered significan t enough to garner this award," she said. "]

am also honored to join with previous winners of the Rough Rider

Award, including U.S. House Speaker Dennis Hasten, who has

never given up in his quest to make a difference." The Ripon Society proudly bestows the Rough Rider Award

on the men and women who continue to bring the message of

Lincoln , Roosevelt and Reagan to our citizens and work to re­

store the core values of the Republican Party.

This year's awardees have pushed for innovative policy solu­

tions on a wide range of issues and we believe the Republican

President who led our nation at the dawn of the last cenrury would

be proud of these leaders fo r it is their principles that will

m take us into the next.

17

Restoring the Majority: The GOP Challenge in California

II)' I)hilippc Melin

nly six yem ago the Republican

Party was on a roll in California.

With a Republican Majority in

the Assembly, a Republ ican

Governor and a hi story of

Republican Presidential victories in six of

the past seven elections, California was

perceived as a bast ion of the new

Republican Majority that appeared to be

emerging nationally.

Governor Pete Wilson, who per­

suaded GOP legislalOrs to back him in­

stead of dealing with Democrat leaders in

Sacramento, won fai r redistricting. H e

earned the GOP 24 of California's 53

Congressional scats, on ly two shy of a

majority.

Now, only six short years later the

Party has hit a disastrous low. There has

not been one major statewide GOP vic­

tory si nce 1994.Governatorial candidate

Lungren's landslide loss in 1998 and

former Vice Presiden t Gore's 12 point

margin of victory in 2000 appear to put

the state solidly in the Democrat's base.

18

Republicans hold only 30 of the state's

80 Assembly scats. T he Party lost four

Congressional scats in the 2000 elections,

and stands to lose as many as four to five

more in a Democrat controlled redis­

tricting process. Such a loss could be the

decisive event in shifting control of the

U.S. H ouse of Represenratives to the

Democrats.

Hurt by the GOP's image as too ex­

treme, Republican Party registration has

declined dramatically and is less than 35

percent. Despite a growing effort by main­

stream Republicans to clect new leader­

ship, the Party organization is still narrowly

contro lled by a coalition, whose leaders

preferred Gary Bauer ro George W . Bush

in 2000. Senior Bush supporters in the

state privately say that if major reforms are

not made, the party is not worth their in ­

vestment.

WHAT CAN BE DONE The dramatic events of the last six

years show that a reversal of fortune is

possible. Perhaps not in 2002 or 2004, but

certainly in time for 2008 when Califor­

nia will playa major role in selecting the

next generation of Republican leadership

that will succeed George W. Bush.

There arc five key elements to a re­

vival of the California GOP.

I. A NEW IMAGE: A change in the party's

image, led by concerned Republicans

speaking out in their own communi­

lies, and eventuallycchocd by new lead­

ership in the California Republican

Party.

2. STRONGER GRASSROOTS: A revival of the

party 's traditional emp ha sis on

grassroots door-to-door volunteer ef­

forts and a rebuilding of the party's

grassroots donor base.

Ripon Fonm • Summer 200 I

1. BEITER CANDIDATES: A new generation

of candidates with a new message.

4. REACHOUTTO INDEPENDENTS: Continued

efforts to bringindepcndentvoters back

into the GO P coalition.

5. FAIR REDISTRICTING: Redistricting that

will give Republican candidates a fight­

ing chance to win back majorities.

Let 's look at each of these items start­

ing ,vith the Party's image. California Re­

publicans relied for years on the theory that

so-called "Reagan Democrats ~ or blue­

collar workers wooed by conservative Re­

publican positions on cultural issues would

provide the swing votes to elect Republi­

can majorities.

A 1999 sttldy sponsored by the then

mainstream Assembly of Republican

Leadership concluded that thi s

demographic group had, for many reasons

including the con traction of the defense

industry. dec lined d ramati ca lly. In

addition, two new groups, middle class

H ispanics and suburban, socially moderate

women had replaced them as the swing

constituency.

The conservative 1989 Webster de­

cision on abortion ignited concern, par­

ticularly by moderate Republican women,

that the Supreme Court was only one vote

away from overturning Roe vs. Wade and

allowing states to outlaw abortion.

Since that decision and the refusal of

the Part)' to moderate its stand on the is­

sue, there has been a continuing exodus of

GOP women from both GOP candidates

and from the party itself. Polls have shown

that both Lungren and Bush's loss was due

in part to massive defections among still­

registered Republ ican women voters.

T hese defections will become pennanent

losses to the party unless a future genera­

tion of candidates and a new party image

wins them baek.

Even more damaging has been the

carnage suffered by the GOP among H is~

panic voters. Pro-choice Governor \ -Vil­

son, who worked h:lrd to keep GO P

Ripon Forum • Somrner 200 I

women loyal to the part")~ chose (0 crack­

down on illegal immigration and govern­

ment benefi ts fo r illegal aliens who were

already in the nation, a shrill issue in his

campalh'11·

\ -Vhile these issues comm:mded ma­

jority support in California and won him

re-election there, they went a long way in

alienating the H ispanic community, par­

ticularly young H ispanics who perceived

it as anti- Hispanic rhetoric that polarized

the electorate along ethnic lines,

T he damage done has extended be­

yond California as liberal activists usc the

California example for their own efforts

to po larize the Hi spanic community

ag-dinst Republicans. As the Hispanic

popu lat ion grows dramat ically and a

Congn:ssional support for greater local £lcx:­ibility in federal education assisClllCC has made

an important contribution to this success.

In California the energy crises and the

almost pat hetic effort of Governor Grey

Davis, first to minimize the crises wh ile

Bill C linton W'J S in the White H ouse and

then to blame it on President Bush's re­

fusal to cooperate in imposing price con­

trols, reveals the ncar intellectual bank­

ruptcy of the Democratic Party in Cali­

fornia. The crises provides an extraordi­

nary new opportunity fo r RepUblicans to

win on a simple message of managerial

competence.

But th:lt message will be drowned out

unJess the GOP is able to neutra.lize the

issues that have driven swing voters away

"In California the energy crises and the almost pathetic effort of Governor Grey Davis, first to minimize the crises while Bill Clinton was in the White House and then to blame it on President Bush's refusal to cooperate in imposing price controls, reveals the near intellectual bankruptcy of the Democratic Party in California."

greater share register to vote. this trend

cannot be ignored.

THE SOLUTION The Party can and must neutralize its

image of negativism on these issues and

refocus the party on its basic messages of

freedom, hope. opportunity, growth, diver­

sity and personal responsibility.

President Bushs recent success on educa­

tion policy, which reversed years of a Demo­cratic polling advantage and crafted a biparti­

san Congn:ssional majority for stronger ac­

counrnbilitywhilc retaining local conrrol of edu­

cation, is an example of \.mat can be done with

leadership at the national k. .... ·cl. Republican

from the party. Californians wan t eco­

nomic prosperity and the lower taxes and

fiscal rovonsibility that are essential to such

growth. But most will reject a "nanny" gov­

ernment that seeks to lcgis.late morality or

one thatsceks to pit one ethnic group ahrainst

anot her for partisan gain .

O n the difficult and bitterly divisive

issue of abortion, the party will never reach

a consensus. California Bush leader Gerry

Pars~"y recognized this by appointing a Cali­

fornia delegation to the GOP national con­

\ 'CI1rion whose leadership supponed n:nl<Wing

the abortion plank from the GOP platfonn.

!-l ard core social conservatives who

run the Califo rni:L Party structure still have

"

not forgiven Bush activists for this move

and many will fight to stop a similar move

at the state level. For some, a deep mora.]

conviCTion that abortion should be outlawed

is more important than winning a majority.

But regardless offights over the party

platform, a new generation of Republican

leaders can and must change the party

image simply by speaking out to make pro~ choice Republicans more visible through­

out the state.

Silence by the mainstream majority

of California Republicans at the grassroots

level, who still believe that abortion is a

matter to be setrled between a women and

her doctor and not by the government,

simply allows the vocal minority to define

the party. The party cannot win without both it's pro-choice and it's pro-life wings,

but in order to \vin supporters of both sides

must feel that they have a voice and can

speak their minds in party circles.

I n other words, these battles will be

fought in primaries, but the losers must

not feel o.cluded from the party. The best

party leaders wiU recognize and encour­

age diversity r:nher than call their oppo­

nents traitors to the cause. As Newt Gingrich once said, ~ I f there isn't a lot of

fighting going on under the tent, the tent isn't big enough.~

In recent weeks, another long festering

issue for some of the same moderate

swing voters is a problem that must be

addressed, the environment. The GOP has

long suffered a polling deficit on this issue

with voters giving Democrats a big edge

as the party best able to handle the issue.

Unfortunately, while recent decisions

of the new administration can be argued

on policy grmlllds, the cumulative effect

creates a serious risk of alienating the over­

whelming majority of Californians who believe that more should be done to con­

serve our natural resources and prOtect the

environment. Key leaders in the Administration ap­

pear to recognize this problem and arc

working to ensure nt:\v initiatives to con­

serve energy, promOte alternative sources

of power, and toughen regulations on key elements of air and water pollution. Hope­

fully these initiatives will overshadow early

public rela -tion s melt-

vote or the state at large. The GOP must

show its face in the Hispanic Community

at the grassroots level. GOP volunteers and if necessary, paid field organize rs,

should be working in Hisp:mic commu-

downs on ar­

senic in drink­

ing water and

the reversal on

regulating car­

bon emissions

"This is not a battle that can be won on the telephone, on the golf course or over drinks at the country club."

that mayor

may not contribute to global warming.

Californians should not hesitate to

encourage the Administration to be even

more pro-active on the environmental

front. Their efforts are likely to be wel­

come at the White House.

EXPANDING THE BASE The most important issue fo r the re­

vival of the GOP in California must be ethnic outreach, particularly to Hispanics.

The Party should simply and dearly ad­

mit that it made a mistake in 1994. The

mostly Anglo majority that elected Pete

Wilson no longer exists and the parry must

look to the future and not the past.

George W. Bush has been a leader on

this issue and his rhetoric in Texas, wel­

comi ng immigrants as a valuable element

of society, has won him majorities and near

majorities among Hispanic voters in his

home state. With time, new faces and

voices in the GOI~ that message can work

in California as well.

Hispanicsare open to the GO P's mes­

sage of opportunity. California Assem­

blyman Abel Maldonado recently tells

audiences about his anS\ver to a youngqucs­tioner in his district who asked, mlsn't the

Democratic Parry the party for the poor?" "Do you want to be poor?~ he re­

sponded.

But simply changing positions on is­

sues witl not win the GOP the H ispanic

nities and at special events ro reach new

potential volunteers and activists.

This is not a battle that call be won

on the telephone, on the golf course or over

drinks at the country club. This banle will

be won at county fairs, community meet­

ings, on college campuses and in street

corner restaurants.

The grassroots battle will not only be

waged in the I-l ispaniccommunity. Unions

and other Democrat allies won their vic­

tories in 2000 with a massive street-level

and shoe-leather turnout campaign that

in the final days and hours of the cam­

paign swamped Republican Members of

Congress in dose races like the ones of

Brian Bilbray of San Diego and Steve

Kuykendall of Los Angeles.

These candidates simply had not in­vested the resources to match the Demo­

crals on the ground. Turnout mail :md

phone banks were no match on Election

Day for personal contact with voters.

Grassroots activists from the socially con­

servative wing of the Party did provide strong su pport for symparheric GOP can~

didates. such asJim Rogan's losi ng bid for

re-election. But hard-core conservative

volunteers were less available for pro­

choice nndidates like Bilbray and

Kuykendall, whose centrist positions made

them electable in their swing districts.

Developing a strategy, based partially

but not exclusively on mobilizing sn.dent

Ripon Forum • Sommer 200 I

and young professional volunteers, is an

essential feature of a COP revival in

California. The:se volunteers, who must

reflect the diversity of the state's popu­lation, will be the seed corn of the new

Republican Party.

Interes tingl y, both tradi ti o nal

groups with big- tent leadership like th e

California Young Republicans and new

groups like the pro-c hoice, pro-environ­ment and fi scltlly conse: rvative Repub­

li ca n Youth Majority arc working to

meet this challenge. They arc recruit­

ing not only volunte:ers but candidates,

especially at the grassroots level fo r County Central Committee, which shapes

the make-up of the state's official party

structure. Brooks Firestone's 21 st Century PAC

mounted a broad-based candidate recruit­

ing campaign uniting moderates and in­

clusi\'e conservatives that nearly toppled

the state parry's ruling hierarchy. It plans

to do so again in 2002.

For candidate recruitment al every level,

diversity is a key word. The C:.t.lifornia

population and soon the majority pool

of registered voters will no longer be white, non -Hispanic. If white males decided

California and national elections, Bob

Dole might well have just been rc-elected

to a second tenn. Future California tickets,

especially fo r statewide offi ce, must be led

by women and ethnic minorities. This may

be the best way to send the message of

inclusion to the new constituencies who

often see the GOP as dominated by older white males.

COULD IT WORK? A recent survey by the Republican

Group, the WISH list, showed that black, pro -c hoi ce former Stanford Provost

Condaleeza Rice defeated even Arnold

Schwanzenegger to be the top choice of

California COP voters for Governor in

2002. When asked if she would consider

running, Rice said, '" love my job.~ She

Ripon Forum ' Sommer 2001

also said, ~l love California.~ The news

headline: "Condi Rice doesn't say no.~

II makes one wonder i£Bush would give

up his National Security Advisor ro have

the Governor of California be a close ally.

It also poses the question, would Rice give

up being National Security advisor for the

possibility of one day being ab l~ to hire one?

Unlikely, but who knows. Even the

thought is an intriguing possibility that

could energize a new generation of Cali­

fornia Republicans.

THE ROLE OF INDEPENDENTS California's open primary, which al­

lowed all voters to participate and which

was passed by a 60 percent margin in 1996,

was struck down by the U.S. Supreme

Court in 2000. In a little noticed but fun ­damental shift that the California Repub­

lican legislators unanimously endorsed and

that the California GOP adopted a rules

change that allows independents to vote

in the Republican primary. This change,

fo r which Senate LeaderJim Bruheshould

get the credit, could go a long way to in­

crease voter participation in GOP affairs. However, some GOP activists are

talking about an even more fundamental

shift that would allow the rop two vote

geners to run in the general election re­

gardless of their political parry. T he im­

pact of such a shift will no doubt be hotly

debated in the coming months. But if

adopted, it could fundamentally alter the

dynamics of California politics.

THE BOUNDARIES

OF REDISTRICTING Finally, no amount of internal r~fonn

in the California Parry will have much

impact on its electoral prospects at the leg­

islative and Congressional level unless there are fair districts that wilJ elect com­

petitive Republicans.

Republicans in Sacramento hold out

the hope that a deal can be struck with

Democrats to preserve the stanIS (IUO, par-

ticularly the 20 seats that form a critical part of the GOP's Congressional major­

ity. But powerful Democrat interest

groups, including labor, public~mployecs,

trial lawye rs, and other si ngle interest

groups that fund Democrats in Califor­

nia, will be pushing for control of the U.S.

I-louse of Representatives. A gerrymander

that took four or five more Congressional

scats to the Democrat column would go a

long way towards achieving this goal.

Led by the California tax-cutting

group People's Advocate and GOP House

Ways and Means Chairman Bill Thomas,

some C:diforn ia leaders are supporting an initiative called "Let the Voters Deciden

to remove the redistricting power perma­

nemly from the legislatu re and allow a

nonpartisan commission to draw the lines

with final approval by the voters. If such

an initiative qualifies for the ballot this

summer, it will provide a powerful bar ­

gaining tool fo r Republ icans dealing

with th e legislature on redi stri cting

plans thi s fal l.

If Democrats in Sacramento pro­

duce a blatant gerrymander, outraged

voters might well respond to the appeal, ~Takc the power away from the politi ­

cians and give it back to the people.~

Withou t the hope of taking four or live

new scats in Californi a, Democrat hopes

for retaking the House in 2002 would

virtwtlly disappear. Vv'it h fa ir redistr icting, good can ­

didates, a strong grassroots rel' ival and

a new image, the California GOP could

be back in the majority within twO to

four years. None to soon fo r the national

GOP that has it's own challenges, which

are nOt entirely different

tend with . to con- II]

Philippe Mtlin is the Exrcutive Dir(!(/or o[

the Republimrt Youth Majority, a pro-choice

organizillion flttlicafttlto promoting (J socially

tolemllt and j iscally conservative appro(ICh to gO'llen/flu nl.

21

A Different Approach US. Representative E. Clay Shaw,fr. (R-Fla.) invites America's

Youth to help solve the nation's growing Social Security problems

By Ashlcigh !Iobel'ls, FOl"llill Edilor

ongTtsSm(1t1 E. Clay Shll'W, j r. is well kmm.mfor spearheading

1m wrlfore reform Irgislalion that lead to one of the most

important soc;al changel ill rumt dunr/($. Now, he has

lalun on the cOllllf ry's aging Social Security program.

Quickly gaining II "pula/ion/or laclding the fI(I tion's tough

/S$U(J, Shaw is du/ieated 10 keeping the system lolvent for lutllre

generaliom. 11/ a hill he (o-allthoud with former l"'ayl and M eans Chairman

Bill Arch", Congressman Shaw promo/fJ the use of income tax (redits

to lund personal retiremenl (1((ollnfs. Still, the (hal/mgr is daunting.

Not only dors Shaw "pwent the dislr;ft with the highest percentage

of thou O'I.JtT the aglo[65, "/llny politicians rifer to Social &curify as

the third mil 0/ politirs. While many Membm would prefir not 10

lou(h the system until it is absolutely nuessary, Congressman Shaw

outlintd a new approach with lhe R ipon Forum on May 17, 2001,

and shared his plam to gel Amerital youth involvtd in the prouss.

RF: This fall , you are taking a different approach to Social Secu­

ri ty reform . I understand you are planning several events 011

Florida college campuses. Tell us about your plans. ,

Congressman Shaw: It is very important [hat we mobilize young

people. They need to know that there is a ben er way to insure

22

COlIgrmmall E. Clay Shaw.]r. laMs aboul S()(ial Suuril] Riform with RF Editor Ashltigh Roberts.

Ripon Forum • Summer 2001

their financia l fu tllte, and that we can also save Social Security

fo r their parents and grandparents. If we start now, we can build

a better and stronger system arou nd the existing one.

T hen: is one thing we know for certain. Over the next 75

years America is facing a deficit in the Social Security system of

message to CQUllter that so we can bring the Democrats on board for a sensible solu tion to the whole problem.

RF: Mter being granted the right to vote years ago, America's

youth arc well known for their political apathy and low-voter turn

out. What makes you think they will be a political factor in So-

cial Security reform?

"Beginning in just 15 years, the system is not going to have enough payroll taxes coming in to sustain it. The federal government is going to have to step up to the plate and either put some more tax dollars into it -and that means raise taxes or cut benefits - or act now and get something done."

Congressman Shaw: You bring

them into the solution and you

engage them. You have to seek

them out. H opefully, we can get

a real discussion on campus and

in the co ll ege newspapers. I

think we can get good turnouts

at the hearings I am goi ng to

hold on Florida's college cam­

puses. My goal is to energize the

young people so they will demand

over S20 trillion. No ecollomy can sustain that. We have got to move.

Beginning in just 15 years, the system is not going to have

enough payroll taxes coming in to sustain it. T he federal govern­

ment is going to have to step up to the plate and either put

so me more tax dollars inlO it - and that mean s raise taxe s

or cut benefits - or act now and ge t something done.

RF; As the Chairman of the Socia l Securi ty Subcommit ­

tee, you've been in vo lved with the iss ue for mallY yea rs.

What ha s ca used you to change yo ur focus and take th is

issue to America's yout h?

Congressma n Sha w: W e need a publi c outcry. The only

thing th e Congress hears is, 'd on't cha nge my benefits .'

That is because th e Democ rats have been very successful

in convinc ing se niors that any chan ge in the system is go ­

ing to affect their benefits. Republicans need to send a positive

that Congress acts.

The hearing we are planning right now will be at Florida

Atlantic University in Boca Raton. We are goi ng to bring

the senior citizens in and let them sit on one side and bring

the students in and let them sit on the mher to create an open

dialogue between the two. I t will be an interesting experiment

because these groups usually don't express their concerns in rhe

presence of the other.

RF: What is your message to the young people of this country?

Congressman Shaw: Let me tell you, over 50 percent of the Mem­

bers of the U. S. Congress don't have a fu ll understanding of how

Social Security works today. I am not sure that I would know if I

wasn't so involved with it. It is something that most people don't

seem to focus on. But it is so important and it consumes so much

of ou r national budget that young people can't afford not to get

involved. It is so important to keeping people out of poverty that

,

Ripon FOI'VITl • Summer 2001 -::~===~:::;;2J ~

Congrnsmlm Cluy Shuw,jr. tliscus$ts his mm agl /O the lIation's youth.

Congress and America have to focus on it. We all need to know

how the systc!m works.

RF: Some Republican naysayers warn that Democrats have his­

torically politiciu d and dcmagogued proposals for Social Secu­

ri ty refoml with o\·erwhelming political success. In your own

Congressional class of 1980, 26 Republicans lost their seats in

1982, in part due to Social Security attack advertisements. If

Social Security is acmarially sound unci12034, why touch the third

rail of politics in 2002?

Congressman Shaw: For two reasons. First, I disagree that the system is actuarially sound until 2034. We will no longer be able

to pay the benefits with the FICA tax beginning in 2016.

Now, there are those that say all you have to do is turn in the

treasury bills because that is what they arc for. But how are you

going to payoff the treasury bills? The federal govern ment is

going to have to do it. So we will have to raise taxes to pay for the

benefits, cut the benefits or go back in the red and borrow money.

Starting that year, we arc looking at a deficit of 520 trillion that will span from 2016 until 2075. That is what we can

avoid. That is why we should act now and the solution is

individual retiremen t accounts. If we start puning money into

them now and Start getting the benefITS of private sector

investment, we can bui ld these accounts up so that we only

have a short period of deficit spending. Then the program

grows.

The program that J have devised actually runs a surplus

over the same period of time of over 520 tri ll ion. The legisla­tion that former House Ways and l'Vleans Chairman Bill Ar­

cher and I put together actually creates a 520 trillion surplus.

In existing law, there is a 520 trill ion deficit . T hose are huge

figures. But we have to start now. The longer we wait, the

more difficult it witl be.

, RF: Other observers say reform of So­

cial Security is long overdue and that

you and President Bush deserve credit for

making the long-term structural changes

that will strengthen and preserve the sys­

tem. What has prompted you to rake on

this bold and challenging refoml?

Congress man Shaw: Newt Gingrich

originally asked me to take this on after I

fini shed welfare reform. I did not know it

go: \vas going to become my career in Con­

~ gress, but it has. I took it on as a challenge.

j The more T looked into it and the more I 'l.; worked at it, the more I understood there

realiy was a solution out there.

h is going 10 rake a little bit of courage. I have one of the

"oldcst~ districts in the counlry as far as the age of my constitu-

ents. But we can preserve Social Securiry for them

strengthen it for their children and grandchildren. 'nd m

VITAL STATS: E. CLAY SHAW, II.

BIrth ..... April It. 1m

.... ..... 1icII PaIIIbII'hIooaphy. ItodoraII!

Hot Iuur. SociaIleclrity ....... , It.IJoodordaIt, Florida

"., "~ _." "'" "I. ~ ~( , 'f • . .. . OI!', .• •

, .

ho,'" 1IarrioII .. EniIit Cosrar; I doiWnn

I"WOIl: CadooIic

E ..... II"'" 1_ Uoi.onIty. l.A. (1"1); UlIiuollity" Jlab l,lIJJ (IHI); 1_ UoiuoniIy,j.D. (I"')

Pu' nl.1III EIpwt ••• c..,. ,-,U.s. _If.. ...... IIIMs(I~lt. hql',.."""'(1m.II);

It. ... 1,,.. 'fiIHIIJor (1ffl.15J; r.n I '"" CiIr C, •• io""" (1971-73); ProaiaIc..., (1"""1; It. .... nolo 0i0I ........ (IHI-6tJ; AaocioltlllooiciP JooIIt (1"'-71).

Web Mha: .............. ,....,

Ripon Forum • Summer 200 I

New Democrats Move to the Middle The D emocratic leadership council discusses

its strategy to redefine the Democrat Party

By AI F.-om

eforming a political party gives

new meaning to the Democrat

and Republican Party mascots,

the donkey and the elephant.

Like tryi ng to

lead a stubborn donkey or an elephant that doesn't

want to budge, it isn't easy

to move a political party.

The national parry had clearly lost its

way. Rather than giving up, New Demo­

crats formed the Democratic Leadersh ip

iog considerable res istance, the OLe

bu ilt a modern, progressive Democrat

Parry that tackled America's challenges

through modern means and fresh ideas.

For more than 15

years, New Democrats

have pushed and pulled

our donkey party back

into the political main­

stream. We had to, out of

political necessity.

In 1984, the party of Franklin Rooseve lt ,

H arryTruman and John

Democratic Leadel'sh~ Council

The resuh:Just eight

years afte r the 1984 de ­

bacle. Bill C linto n ,

fo rmer chair of the DLe and leader of th e New

D emocrat movemen t ,

won the White House.

I n 1996, he was re­

elected. It was the fi rst

time in six decades that

a D emocrat retained the

presidency.

Because his political

success was built on his

New Democ rat ideas,

C linton's victories rede­Kennedy and the party

that led Amenca to most of its economic

and social progress in the 20th cen tury.

lost 49 states. By 1992, it had lost five

of the last six presidential elections . and

most experts said it would not win the

presidency agai n in the 20th century.

Ripon forum • Summer 200 I

Council and set out to rebuild the party

by redefining it. We believed if we stood

fo r good ideas that con nected with the

everyday needs of the American people, voters would once again turn to Demo­

crat s for national leadership. Qverco m-

fined the party. When, after some early setbacks, he put those ideas into action,

he reinforced the new definition of the

Democrat Party and dearly put it in the

vital center of American politics. And

because the movement is grounded in

25

\

ideas, it will survIve Vice Presid en t

Gore's fai lure to win the presidency in

the 2000 election.

REFORMING A NATIONAL PARTY What arc the lessons that can be

learned about reforming political par­ties from the New Democrat ex peri ­

ence?

Firs t, in the American political system,

parti es are defined during th e

presidential nomination and election

process. Unlike a parliamentary system,

American parties don't hold conferences

to determine party policy. To most voters,

the parties stand for what their presidential ca ndidates stand for. New Democrats

understood that when they changed the

DLC focus in 1989 from a fo rum debating

new ideas to forgi ng a winning agenda for

a New Democrat presidential candidate.

Second, real reform requires a moti­

vating factor. Sometimes it's a national

crisis, like the Great Depression was for Franklin Roosevelt. For New Democrats,

the factor was consistent electoral

Ronald Reagan fllied that role in 1980. For

us, it was Bill Clinton. He was the mes­

senger and the marketer of our movement.

Clinton took our ideas into the presiden­

tial primaries, and by winning the nomi­

nation and the election - and then by

governing as a New Democrat, he rede­

fined our party.

Though the DLC was formed in

1985, it really intensified its effortS to re­

define the Democrat Party four years later.

The 1988 presidcntial election was a ter­

rible disappointrnclH to all Democrats, but

it \VlI.S especially difficult for party reform­

e~. Not only did we lose an eJection we expected to win, the 1988 campaign was

eerily reminiscent oflosing Democrat cam­

paigns during the nvo pmoious decades.

TAKING ACTION So in 1989, the DLC adopted a four­

part strategy to change the Party. Stage one was ~reality therapy." It was an hon­

est assessment of why Democrats were

consistently losing elections. This seems

Michael Dukakis won a higher percent­

age of self- identified DemocratS in 1988

than Jimmy Carter did in 1976. In fact, in some polls he won a high er percent­

agc than Lyndon Johnson did in 1964.

It was clear that Dcmocrats could no

longer win the White House by on ly turning out the base. We needed to re­

define the Party to cnsu rc hard work­

ing, middle class Americans were nOt

fecling left behind.

T he need to redefine the party led

New Democrats to stagc two of the

stratcgy: The development of a new phi~

losophy. In 1990, wh en Bill Clinton took over as chair of the DLC, we is­

sued Tht N tw Or/tlms Du /arolion, a

simple philosophical statement that told

vOters what we stood for. We sa id we believed that "the

promisc of America is equal opportu ~

nity, not cqual outcomes", that ~ thc pur­

pose of the Democratic Party is to ex~

pand opportunity not government,~ that

"econom ic growth is the prerequisite for

defeat threatening the national

party's very survival.

Third , reformers need a

clear strat egy and a single­

minded purpose. Our strategy

was to offer modern means that

"Not only did we lose an election we expected to win, the 1988 campaign was eerily reminiscent of losing Democrat campaigns during the two previous decades."

furthered the party's traditional

principles and ideals. We knew that pur­

suing that strategy would engender great

resist'.lnce from party regulars. But we took

the hits and kept goi ng forward.

Founh. ideas maner. New Democrats

believed that winning coalitions in the in ­

formation age had to be built around ideas

and nOt merely interest groups. Dcmo·

Cfats were losing because their ideas were out of touch with the hopes and aspira­

tions of too many Americans. So we

shaped a progressive agenda that con­

nected with ordinary Americans.

Fifth, a persuasive presidential can­

didate is essential. For the conservatives,

26

elementary, but it is extraordinary diffi cult

to get a party to face the real reason it loses

elections. While we were roundly criti­

cized for doing it, OLe findings were criti­

cal to charting a new course.

We discovered that Democrats were

losing because too many of the very people

New Deal and New Frontier policies

helped move into the middle-class were

voting Republican. In 1988, voters earn­

ing between 520,000 and 550,000 a year

voted Republican by better than a 5-4

margm.

We were also losingbccause the num­

ber of Democrats had shrunk dramatically.

opportunity fo r all," and that "despite

the fall of communism, the world is still

a dangerous place." To most people

those weren't earthshaking beliefs. But

for Democrats, they werc redefining

statements because mos t Am erican s

di dn't believe Democrats bel ieved in

them.

Stage three of our strategy was the

development and articulation of specifi c ideas that turned the new philosophy into

a full -fledged governing agenda. The criti-0 1 moments came in the 1991 conven­

tion in Cleveland, when with people rep­

rcsenting all 50 stares, we passed a set of

Ripon forum • Summer 200 I

resolutions detailing our new governing

agenda.

The N rw Choice resolutions offered

a set of progressive policy proposals groundcd in mainstream values that chal­

lenged liberal Democratic orthodoxy. It took on tough issues, calling for fiscal

an insurgent party faction. Most Demo­

cratic leaders still opposed us.

TESTING THE MESSAGE Despite the oppositio n, New

Dcmocrats believed that rank -and ­

file Democ rats and most Americans

tion of the party just by putting his New

Democrat ideas into action. But over the

course of his eight years in office, he did

just that. The result is a radically rede­

fined Democratic Party.

Today the Democrats stand for eco­

nomic growth not just redistribution, for fi s­cal responsibility nor ~ tax and

"In retrospect, the Cleveland Convention may have been the most important event in the resurrection of the Democratic Party. But at the same time it was an anathema to many important Democrats. The Reverend Jesse Jackson came to demonstrate against the DLC. Liberals led by Iowa Senator Tom Harkin and Ohio Senator Howard Metzenbaum held a counter conference."

spend," for work not welfare,

for prt.'venting crime and pun­

ishing criminals not explaining

away their behavior, and for

empowering not bureaucratic govemment. ll1at'sstarklydif­

fercnt than the way the party

was defined a decade ago.

Despite our fail ure to win

the White H ouse last year,

there is no going back. The

New Democrat movement is

growing, and in city hal ls and

state legislatures across the discipline, welfare reform, national ser­

vice, public school choice, cha rter

schools, and legislation like the Brady bill

when the Democratic lead ers of both

houses of Congress were sti ll opposed

to it. T 11 retrospect, the Clevc\and Con­

vention may have been the most im ­

portant event in the resurrection of

the Democratic Party. Bu t at the time

it was an anathema to many impor­

tant De mocrats. T he Reverend Je sse

Jackson came to demonstrate against

the O LC. Liberal s led by Iowa Sena­

tor Tom H arkin and Ohio Senator

H oward Metzenbaum held a counte r

confe rence. Members of the United

Auto Workers protested ou r NA FTA

position. Even moderate Democ rats

in the House lectured me about poi ­

soning their relati onships with key

interest grou ps.

When the convention was over, Bill

Clinton and the DLC had outlined a

radically redefining agenda for Demo­

crats. But it was still just an agenda of

RifXlO Forum • Summer 200 I

would suppo rt the agenda if they were

given the opportunit y. So after

Cleveland we moved to stage four of

our strategy: M ake the New Dem o+

crat agenda th e defining Democra t ic agenda by testing it among vote rs in

the Democ ratic primaries.

That's exactly what Bill C linton did . Calling it [he New Covenant,

C linton put the New Democrat

themes of opportunity, responsibi lity,

community and the agenda we developed

at Cleveland before voters. Despite a few

bumps along the road, C linton won the nomination, and the New Democrat

philosophy and governing agenda

redefined the Democratic Party.

Just a year after the tumultuous Cleve­land Convention, a united Democratic

Parry ratified a New Democrat platform and nominated a New Democrat candi­

date at its convention.

However, we learned soon enough

after the 1992 election that it would be no

easy endeavor for Clinton to overcome

party resistance and cement the redefin i-

country, New Democrats arc emerging as

the Party's most dynam ic leaders.

T he New Democrat Coalitions in

both the U.S. House and Senate are fast

becoming the largest and most impor­tant forces in their respective caucuses.

New Democrat governors have re ­

claimed statehouses in California and

across the South fro m Mi ss iss ippi to

North Carolina. There is not one

Democratic governor who docs not gov+

ern as a New Democrat.

Just a small insurgency fighting for

survival a decade and a half ago, New

Democrats now define the Party and have

put it on the prec ipice of becoming

America's m~ority party agai n. Best of

all, the movement is still young with

its best years ahead.

AI From is the founder and chief exeruti'lJe

o/JiuroJthe Democratic Leadmhip COllneil

(DLC), (UI idea action center 0/ the ~Third

Way"gO'lJem/ngphilosophy that is reshaping

progressive politics in the United States and

(lro/lUd the globe.

27

Medicare Reform: Still Time To Get It Right by nebnrah Steelman, Vicc I),"csidcnl , Co'"pOI"a le Arrai,"s, 1\li tilly and Company

ece nt s ignals from some in

Congress suggest thai what was

once an in spiring agenda for

modernizing Medicare is being

whi ttled down to a single isslIc ­

how to add a prescription drug benefit. If

a stand· alonc prescription drug benefit

passes, Medicare will f.'lCC a bleak future.

The lack of outpatient drug coverage is

unquestionably an enormous shortcoming,

but we must not luse sight of the fact that

it is by no means Medicare 's only major

one.

HalfWay me:l.sures hold the limelight

today: block !,'Tanrs, a variety of drug-only

insurance bills or drug-only add-ons to the

current outmoded program. But these

measures sati sfy neither fcal need nor political imperative?

The future can be different: com­

prehensive coverage can be available to

all seniors at less ri sk to the taxpayer and

to seniors than posed by the current pro­

gram.

28

The current system is notoriously,

almost maniacally, convolul'ed and com­

plex. According to the Mayo C linic, the

rules and regulati ons promulgllted by

H eFA over the years now run to morc

than 100,000 pages- much more ma s­

sive than the (ax code an d arc beyond

humans capacity for compliance. Yet

providers mu st do everything in their

power to comply, because it is these rules that specify what procedures will be re­

imbursed as ~medically necessary. ~ The

claims review and appeal s process for

denied coverage is ridiculously long -

524 days, on average, from initiation to

completion, according to the Heritage

fmllldation - and claims arc rcjccu:d

more frequently in Medicare than in pri­

va te health insurance systems.

Almost all M edicare providers can

furn ish stories of Kafkaesque encoun­

ters with HefA. One note in PhYJicians Payment Update will have to stand for

thousands. H C FA has told Medicare

contractors that any time they receive

an unsolicited, voluntary refund check

from 11 provider or supplicr, they must contact He FA. Specifically, the contrac­

tor must:

find out why the refund check was cut.

find out how the payment problem was

identified by the provider.

find out why the incorrect bill was origi­

nally submitted.

take corrective steps to prevent similar

errors from happening. Yet for all this, Medicare has a higher

fraud fate than private insurance plans.

Medicare is ful l of holes in irs cover­

age of the most serious medical needs.

again falling short of commercial stan­

dards. T he lack of drug coverage is ex­

hibit A, but the re is more. M edicare doesn't cover non- rehabilitative long-tenn

care, catastrophic expenses, many preven­

tive care services or dentistry, hearing aids

or glasses. Medicare does not cover cho­

lesterol screening even though cardioV'.lscu-

Ripon Forum • Summer 2001

lar disease is the leading cause of death in

the United StatC$. These necessary services

are routinely covered by commercial and

employer-sponsored private health plans.

Once you add Medicare's stiff COSt­

sharing (what worker pays 5776 the first day he or she must be admitted to a hos­

pital?), Mt:dicare turns out to be something

far less than the comforting securityblan­

ket we all want for seniors. On average,

about 22 percent of the typical senior's

income is spent on health services not cov­

ered by Medicare.

The program is economically unsound

as well, full of contradictory incentives

and unworkable controls. The copays

and deductiblcs private insurance uses to give

beneficiaries some sense of oost-consciousncss

arc hopelessly anachronistic in Medicare.

Medicare's hospital deductible totals about

92 percent of the average beneficiary's

monthly Social Security benefit! What

reasonable person wouldn't insure against

thi s throug h Medigap o r other

supplemental insurance? But at the other

end of the spectrum, the annual deductible

for Part B, which covers physicians and

many outpatient services, is so low it begs overuse. And eve n thi s deductible

disappears once the sensible seniors has

pu rchased the in surance necessary to

protect agllinst the catastrophic potential

of a hospital admission (federal guidelines

dictate the design of M edigap policies.)

Medicare has no sensible coverage

and utilization incentives. Medicare docs

not help beneficiaries navigate the spec­trum of health care therapies and alterna­

tives. Medicare has no way to discover and

pu rsue the treatments that offer the best

value for the monC)'. Instead, the program

relies on component cost management price

controls to try to keep spending in check. The inevitable effect of such measures

is to depress the supply of goods and ser­

vices under the controls, thus reducing the

quality of care offered to seniors.

Medicare's payment rates arc not up-

Ripon Forum • Summer 200 I

dated at intervals

that reflect the

adoption by phy­sicians of the best

and latest medical

technologies, and doctors and hos­

pitals must adjust

the mix of services

they provide to

compen sa te for

payments that do not adequately re­

flect cost. As a re­

sult, patients may

receive older and

cheape r care

rath er than th e

best available care.

As one con ­

sequen ce of thi s

approach, the time be tween a

new medi ca l

device's approval

for medica l use

and its acceptance

by Medi care can

be be tween 15

months and 5

years. Further, because some devices must

be approved by M edicare on a region-by­

region basis, the same technology may not be available nationwide.

The same impediments stand in the

way of other medical innovations - new

surgical procedures and new drugs for hos­

pital usc. If the same principles were ap­

plied to a new outpatient drug benefit, the

value of that benefit would decline steadily

and rapidly.

Nledicare routinely tries to impose

static comrols on a field undergoi ng dy­

namic change. This inflexibility is perva­

sivc and without a doubt constitutes the

greatest weakness of the M edicare sys­

tem over the long term. It is almost pur­

posefully anachroni stic. And, in this

case, the fl aw transce nds even the best intentions of )-IC FA's managers - any

major change in Medicare requires an act

of Congress.

Of course, there is a school of thought

that holds that erecting barriers to new

technology is desirable and necessary. For

example, the eminent health econom ist

Victor Fuchs attribUTes the steady growth

of health expenditures almost exclusively

to the development and deployment of

new technologies. Therefore, he argues,

"the most importatu strategy for slowing

that growth is to slow the development and

diffusion of new technology."

This Luddite th inking will not be

supported by our society. In addition, bio­

medical innov-,nion is our only hope of

29

bringing down the high cost of treatmen!

and the far higher cost of d isease.

In the case of pharmaceuticals, there is

a growing body of evidence to support that

view. In a landmark 1997 study of the trcat­

men! of heart attacks l , researchers demon-

government spends our taxes on that can

even come close to that kind of value?

In any case, it should be clear that,

quite apart from its lack of drug cover­

age, Medicare today is now discon­

nected, uncoordinated, inadequate, ex-

pensive, and unrespon ­

"Medicare routinely tries to impose static controls on a field undergoing dynamic change. This innexibility is pervasive and without a doubt constitutes the greatest weakness of the Medicare system over the

sive. And any attempt

to add drug-only cov­

cngc to this structure

is like adding a new

fl oor on a building with

a crumbling founda -

tion.

We can do better.

My background in

Medicare date s back

over two decades to my

years working for the

late Senator John long term."

strated that the incremental benefit of pre­

scribing cardiovascular drugs cxccedl..-d the

incremental costs. Using that data to com­

pute a "cost-Qf-living" indo: for heart at­

tacks, they showed that the indo: had actu­

ally been declining at an annual rate of 1.1

percent. Their conclusion is worth quoting:

~Rf!{ei'C)ing more in improvtf/ health

than we pay in treMment costs implitSlhal

medical care is a more productive in'INstmfnl

than Ihe average uu for our funds outside

Ihe mldi(DI u(lor. And it implils thaI a

true (ou-0l-living indlx for hlart attack

(are- a pri(l indexfor heallh after a hlart

attack - is falling over (ime, whereas (on­

venlional medical care price indexes have

suggested a rapid riu."

More recently, Columbia University

economist Frank Lichtenberg has docu­

mented a similar cost/benefit return for

pharmaceutical innovation in gene ral.

H e calculates that ou r nati on's total

spending on new pharmaceuticals from

1970 to 1990 has produced a benefit to

society equivalent to a 40 perce nt return

on investment. Is the re anything else

30

Heinz.. H e was a pas­

sionate believer in

Medicare as a foundation fo r seniors'

health and income securi ty. My term

in President Reagan's OMB taught me

that M edicare can be run more effi ­

ciently by changing the way we buy ser­

vices. During my service on the Medi ­

ca re Commission chaired by Senator

John Breaux and Congressman Bill

Thomas, I leamed that there is a better way

to manage Medicare, a way to improve ben­

efits, reduce costs, and reduce administra­

tive hassles f-or providers.

Recently, I joined Eli Lilly and

Company, a 125-year-old company

that produccs, among other miracles,

the insulin that has kept millions from the

dread effects of diabetes. We also discovered

and brought to market breakthrough drugs that have helped millions of people through dle slog

of depression and the disability of

schizophrenia Ourinnov.ltion \vill expand the

horizon. of producti\'C life in a multirude of uralS

for millions of people for years to come.

Although now ridd led with difficul­

ties, let us not lose sight of the fact that

Medicare's contributions to the way we live

now is enormous. 1t is the reason we have

the world's best hospitals. the world's most

well-trained physicians, and in short, the

world 's best health care. This program is

worth investing in. We will spend more

to maintain and improve it, and we will

spend more to cover necessary benefits like

pharm aceuticals. As Republicans, we

need to acknowledge this, and we need

to lead the way in Medicare reform so

that we are get more fo r taxpayers'

money. As my mom says, gening old

isn't for sissies. But it isn't for spen d­

thrifts o r micro-managers either.

There is no question that provid­

ing drug coverage is essential and that

we will spend more of our tax dollars to

achieve this. 'We arc a society built on

the pursui t oflife, liberty and happiness

and dedicated to individual choice.

H ow will we finance the high quality of

health care in which we believe?

Certainly that answer is not found

through inc rementa l changes which

con tinues the current Medicare system

of centralized con trol and administered

prices. We will need the individual

choice and control, the aligned incen­

tives and the efficiencies made possible

by comprehensive benefit packages ad­

miniStered very differently than the way

Medicare is run today.

Comprehensive reform of Medicare

is the only lasting answer to the r.-I shortcom ings of the present system. W

Deborah Steelman is Vi(t Pm itient, of

Corporate Ilffairsfor Eli Lilly and Company

I "The Costs :Uld Benefits of lntcnsive T ~tmcnt

for Cardiovascular Disease," by David Cutler.

Mark McClellan (now a member of the Coun­

cil of Economic Advisors in the White House

and one of the an:hiteca of the fOrthcoming

B"'" M"'= .dOnn ".,.,.,..I) '"" J"""h Neo.....oouse, in Mtasuring fix PrUts o/'MttlitaJ

Trratmmts,Jack E. Tripplct,ed .. Brookings In­

stitution Pn:ss, 1999.

Ripon FOI'lJffi • Surrvncr 200 I

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