Well, we and Egypt and Israel have all taken the position, publicly, and the same position privately among ourselves, that a separate peace agreement… - Jimmy Carter

To help our hard-pressed cities, which quite often in the past have not gotten a fair share of governmental opportunity, we've supported--and Congress just passed yesterday--a major expansion of countercyclical revenue sharing, which means that the money goes to the areas that are most in need. We've also proposed a renewed community block grant program with changes that will stimulate private investment, in particular housing and other developments, and put more of the money into the cities again which need it most. We support extending the earned-income tax credit for working people and a general, personal tax credit, which together add up to $6.8 billion annually in individual tax relief, mostly for low- and middle-income families, including those families too poor to owe any income tax. And also, I will sign into law within the next few days--Congress has already passed--a permanent $4 billion tax cut through increases in the standard deductions. Eighty-eight percent of this tax relief will go to families with incomes of less than $15,000 a year, and 3.3 million low-income taxpayers who no;,' pay taxes will not have to pay any Federal income taxes at all.

In closing let me say this: We can do these things if we remember that nothing good comes quickly or easily. Every one of these programs that I've outlined to you this morning has been too long ignored. When I became President, I could see very clearly, as can you, that 4, 8, 12, 20 years ago, these difficult problems should have been addressed. We must make hard choices about how to use our resources, and we must realize that only a lean and efficient government can translate good intentions into actions that will improve the lives of our people. That's the kind of government I'm determined to have. And I'm going to stick to that determination in spite of whatever criticism may come. And I need you to be partners with me in the next 4 years. Just remain standing. And I want to say one other thing. I've just got one final comment to make. In his final report to this convention, President Leonard Woodcock wrote: "In the United States, we are moving from a period of depression, despair and despondency into a time of renewed hope." If we work together in our free Nation, that hope will never fade.

I've obviously been concerned recently about the Bert Lance case, and I've not let it interfere with my own functions. I don't think Bert has let it interfere with his functions as the Director of the Office of Management and Budget. This is an agency with which I'm most intimately involved, personally, on a multiple basis every day. And because of my own engineering background and my habits acquired while I was Governor, I set very specific and rigid time schedules for the accomplishment of each component part of a major undertaking. And I can assure you that there has been absolutely zero slippage in the Office of Management and Budget because of this series of allegations that are now being answered by Bert Lance to the Senate--I hope, successfully. We've initiated this year--and this is the last point I'll make--a brand new budgeting system that I used in Georgia, called zero-based 'budgeting. It's a massive undertaking for a bureaucracy of our size to completely change its mechanism by which next year's budget will be prepared. But the fiscal year '79 budget will be prepared in its entirety using the zero-based budgeting technique, where you don't make any assumptions that present programs or expenditures are sacred. You don't just deal with the new additions next year for the budget considerations, but you start from zero and analyze the entire appropriation of funds. The reorganization effort is on schedule, and I think by the end of the 3-year period that's been given me by the Congress, we will complete it to the satisfaction of the people of our country. I'll be glad now to answer any questions that you might have.