Can’t Justify State Aid, Reagan Tells Governors

President Reagan asked the nation’s governors for their “help and understanding” today and told them that there is “no justification” for federal aid to state and local governments.

Reagan’s tough words came at a White House meeting with members of the National Governors’ Assn. and drew angry criticism from some of the state leaders.

“There is simply no justification for the federal government, which is running a deficit, to be borrowing money to be spent by state and local governments--some of which are now running surpluses,” Reagan said in his opening remarks.

“I ask particularly for your help and understanding, not as a Republican or a Democrat, but in the spirit of partnership and as one chief executive to another,” Reagan said in defending the need for federal budget cutting.

Time for Restraint

“The time has come for budget restraint,” Reagan told the group.

The President said “tough calls” must be made to cut back on federal programs but he stood fast against their appeals to make the Pentagon shoulder a greater share of the budget-cutting burden.

“I detected no changing of position today,” said Republican Gov. Thomas H. Kean of New Jersey after the 30-minute session.

“If the President and the Administration don’t want to even talk about defense and taxes, we’re not going to get anywhere with them,” said Democratic Gov. Anthony S. Earl of Wisconsin.

Gov. John Carlin, a Kansas Democrat who is chairman of the governors’ association, said, “It’s clear from the President this morning that Social Security, the defense budget, revenue (are) all off the table, so at least to this point we haven’t made that much progress.”

Most Governors Upset

Carlin said most of the governors were upset with “the huge area he’s left off of the table.”

Connecticut Gov. William A. O’Neill, a Democrat, said he was disappointed with Reagan’s remarks, which he said tried to shift burdens to the states. “It certainly was not encouraging.”

Gov. James R. Thompson (R-Ill.) said Reagan had a heated exchange with New York Gov. Mario M. Cuomo, a Democrat. Thompson said Cuomo asked Reagan for a tough stand on defense cuts and to support a freeze in cost-of-living benefits for Social Security--two positions the governors’ executive committee has adopted.

‘You Take Initiative . . . ‘

Thompson said Reagan rejected further defense cuts and said about Social Security: “Listen--you guys made that a partisan issue in ’81 and in ’82. You guys take the initiative this time . . . and I’ll listen.”

Republican Gov. Lamar Alexander of Tennessee said he was “disappointed” in the meeting and said it would be fruitless to try to cut the deficit without attacking “war, welfare and the debts.”

About 84% of the budget covers defense, Social Security, Medicare and interest on the federal debt.

Carlin said earlier, “There’s a lot of misunderstanding on the so-called surplus.” He said most states have a 2% to 3% surplus of their annual budget, well short of the “safe” figure of 5%.

Alexander said he is “very disappointed that the Administration would spend a minute arguing with the states about whether they have a surplus.”

“The President knows better than that,” Alexander said. “It’s an irrelevant issue.”