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Title: NPR Phase II: Alice M. Rivlin Remarks

Author: Alice M. Rivlin, Office of Management and Budget

Date: December 1994

* EXECUTIVE OFFICE OF THE PRESIDENT *

* OFFICE OF MANAGEMENT AND BUDGET *

Statement of Alice M. Rivlin

Office of Management and Budget

As you have heard, the President is proposing today

bold changes in five agencies -- changes that appear

revolutionary to those who work in or deal with these

agencies. These five agencies are very different. What

unifies their plans?

* For one thing, they will help pay for the President's

middle class tax cut (along with extensions in the

caps or. discretionary spending).

* For another, they will shrink the size and

intrusiveness of the federal government.

* But maybe most important of all, they arise from our

very serious rethinking of the essential role of the

federal government in relation to state and local

governments and the private sector.

Over several decades, federal agencies have accumulated

a wide variety of roles and missions, offices and

activities. The result has been a plethora of programs

with different rules and objectives.

Now is the time to sort out the roles and missions. It

is time to ask basic questions: Should the federal

government be doing all these things? Should it be

making all these decisions? Should it be handing out

all these specific little grants?

The Administration has asked these questions in five

agencies -- the leading edge of a government

revolution. You will hear our specific answers from

these agency heads. But, generally speaking:

* Many decisions now made in Washington would be better

made closer to the people being served -- by states

or local communities. They know best what

transportation needs are, what housing needs are, how

best to spend federal money as well as their own

resources.

* Some activities not appropriate for any level of

government would be performed more effectively by the

private sector or by public entities subject to

incentives and pressures of private sector

competition.

* Some activities must remain in Washington while being

performed more effectively. That's why we have

decided not to abolish any major agencies

.