The Nation - News from Feb. 25, 1986
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The nation’s governors, meeting in Washington, told President Reagan that they are willing to take their share of Gramm-Rudman budget cuts, but not the big Medicaid costs he wants shifted to the states. Instead, the governors told Reagan, they want Washington to pay all Medicaid costs in exchange for the states taking over all highway programs except the interstate program. That would mean assigning the states revenue from the 9-cents-a-gallon federal tax on gasoline.
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