    RECORD TYPE: PRESIDENTIAL  (TRP NOTES MAIL)

    CREATOR: Ron Klain ( CN=Ron Klain/O=OVP [ OVP ] )

    CREATION DATE/TIME:11-APR-1996 09:12:16.00

    SUBJECT:  Updates

    TO: Albert Gore ( CN=Albert Gore/O=OVP [ OVP ] )
    READ:UNKNOWN

    TEXT:
    In addition to the separate item about Raines I sent you, here are some

    updates on what is going on around here:

    1.  Pension Event.  This is today's public POTUS event.  It got decent (if

    small) advance press today -- we'll see how it does.  Tomorrow's event is

    trade, and you are scheduled to join the President for that one.

    2.  State Dept Auth.  POTUS will veto this tomorrow.

    3.  Medicaid.  The bipartisan Governors group is blowing up, with the GOP

    govs moving to the right (no entitlement) and the Dems bailing out.  This

    could happen as early as tomorrow.  There are efforts to steer the Dem

    govs toward Breaux-Chaffee -- but this rift on Medicaid will clearly make

    a deal on the budget harder.

    4.  Terrorism Bill.  It looks like the Congress will finish this before

    4/19 -- and it will include some very bad habeas provisions.  There will

    be a strong staff recommendation that the President sign it -- but he will

    be getting heat from his Yale Law Alum friends against it.

    5.  96 Approps.  Staff meetings continue.  There has been no progress on

    the language issues.  On the money issues, the GOP is willing to give

    some, but not all.  We will get core needs at EPA covered, but some of the

    programs you most care about -- climate change, e.g. -- may not get their

    add-backs.  Martha Foley is keeping us well updated.

    6.  POTUS Tax Return.  POTUS is signing and filing tomorrow, before he

    departs.  I need to check with Kumiki about where your filing stands.

    Finally, I am increasingly concerned about the huge stretches of

    phone/office time on POTUS schedule, and increasing numbers of meetings

    with just Panetta.   The so-called "Chiefs of Staff" meeting with POTUS

    (where Cabinet reports and key personnel matters were reviewed) with you

    and POTUS disappeared when Erskine left -- and we have not even had an

    Ickes/Sosnik meeting in over two weeks (Do you really believe no one has

    talked politics to the POTUS in two weeks?).  The point is that business

    is increasingly being done with him in a way that is "off the books,"

    which means that it is increasingly happening without you being in the

    room.  Perhaps this is just paranoia on my part, but I intend to put this

    into your lunch memo for tomorrow....