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Tuesday February 27, 2001

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Bush establishes group to ease federal regulations on states

By The Associated Press

WASHINGTON - President Bush is establishing a working group to seek ways to relax federal government regulations on state programs.

Bush told the nation's governors yesterday that the group, comprised of Cabinet secretaries and White House aides, would draft an executive order requiring federal agencies "to respect the rights of our states and territories."

"The framers of the Constitution did not believe in an all-knowing, all-powerful federal government," Bush said. "They believed that our freedom is best preserved when power is dispersed."

Bush said he would sign a directive yesterday creating the working group and encouraged the governors to offer their input as the group looks for ways to speed up waivers and streamline "rigid" regulations.

"Real change comes from the bottom up, not the top down," Bush said. "The genius of the American system has been to let that change flow upward from neighborhoods to cities to states and then to the federal government. We need to keep that path open to give government a human face and bring decision-making closer to the people."

Gov. John Engler, R-Mich., said governors were anxious to offer those suggestions, even though they have reservations about some of Bush's budget proposals.

"Our colleagues are, I think, at this point, quite enthused about the openness and the willingness to entertain ... any and all ideas," Engler said.

White House spokesman Ari Fleischer said the order the working group ultimately will produce should make it easier for states to carry out reforms within their own programs. He said the group would focus on consolidations that can be carried out by executive order.

"And we're going to work very closely with governors of both parties on that executive order," Fleischer said.