Governors Say President Failed to Lead on Budget

President Reagan was criticized Sunday for failing to show leadership in the recent federal budget fight as the nation’s governors met here to address concerns about the federal deficit and the foreign trade imbalance.

Kansas Gov. John Carlin, chairman of the National Governors Assn., complained at the start of the three-day conference that “we have not had strong leadership.” Carlin, a Democrat, said at a news conference opening the association’s 77th annual meeting that “the governors are very concerned about the deficit” and the related foreign trade imbalance.

He said Reagan’s national media campaign to push his tax proposal, which came at the height of the budget fight, “had to have a significant detraction from Congress’ ability to deal with the deficit.”

The federal budget for fiscal 1986 adopted by Congress last week is expected to result in a defict of about $175 billion next year. Without the budget agreement, the figure would have been about $55 billion higher.

At meetings later in the day governors expressed concern about the rising level of foreign imports, particularly from Japan. The govenors formally oppose enactment of retaliatory legislation by Congress, although there appears to be growing pressure among the state chief executives for some kind of strong protectionist action.

California Gov. George Deukmejian is not attending the conference. He was said to be on vacation.