Reagan Likes Welfare Plan, but Not Idea of Funding It

President Reagan told the nation’s governors today he likes their $1-billion welfare reform proposal but did not agree to fund three-quarters of it with federal money as they asked, governors said.

But the governors took Reagan’s agreement in principle as a good sign for their program, which requires recipients to sign a contract to work or get education and training in return for benefits.

The governors also did not get the President to agree to setting up a “national standard” for welfare recipients that would cost even more money because more people would qualify for benefits. That point is also controversial among the governors themselves, since it would cost states as well.

Arkansas Democratic Gov. Bill Clinton, chairman of the National Governors’ Conference, said he was pleased with Reagan’s endorsement of the governors’ ideas.

‘Price Tag in There’

“We’ve been working really hard to get an agreement in principle,” he said. “I think by (Reagan) agreeing to the contract idea . . . to the idea that everybody with a child 3 years old and older should have to engage in education, training and work, there’s obviously a price tag in there but it just wasn’t identified what.”

Clinton said although he did not get an agreement on funds, he was pleased Reagan went along with the ideas.

“They (at the White House) didn’t get off the boat yesterday, they know what the (money) deal is, and I think it’s a great day for welfare reform,” Clinton said.

Reagan also has a welfare reform proposal that includes work requirements, but it calls for the federal government to provide only 50% of the cost.

Governors Asked to Help

Reagan said he will be sending his welfare reform package to Congress on Tuesday and urged the nation’s governors “to help get our ideas through Congress.”

The Administration’s plan would allow states to choose welfare programs to put into demonstration projects that include jobs and training as long as basic welfare programs are included.

The governors’ proposal calls for a $450-million start-up cost in the current fiscal year to be borne completely by the federal government. In the first full year of the program, fiscal 1988, the federal government would pay $850 million of the $1-billion cost.