Bush Unveiling Religious-Based Plan

Monday, January 29th 2001, 12:00 am

By: News On 6

WASHINGTON (AP) â€” President Bush is moving to tap religious institutions for more charitable work, confronting critics who say using public money for such programs could violate the wall between church and state. Bush also is taking on a greater role in confronting California's energy crisis.

Bush on Monday was establishing a White House office that would distribute billions of dollars to religious groups and charities over the next 10 years. The president wants to let such groups compete for taxpayer money to provide after-school programs, prison ministries and drug treatment, among other things.

To build support, Bush will meet throughout the week with leaders of spiritual and charitable groups and he planned to attend the National Prayer Breakfast on Thursday.

Bush has settled on University of Pennsylvania political science professor John J. Diulio Jr. to head the office, a White House official said Monday on condition of anonymity. Former Indianapolis Mayor Stephen Goldsmith will be tapped to head the Corporation for National Service and will work in cooperation with the new White House office, the official said.

Skeptics say shifting government money to churches, synagogues and mosques so they can expand assistance programs raises church-state separation questions. Even some churches are wary of government money that might come with strings attached.

Striking preemptively at those critics, Bush said religious groups must be part of the solution to society's ills.

``A compassionate society is one which recognizes the great power of faith,'' Bush said last week. ``We in government must not fear faith-based programs, we must welcome faith-based programs.''

Bush also was meeting Monday with top aides to discuss a long-range national energy policy. Aides said California's power crisis was certain to be at the center of the discussion among Bush, Vice President Dick Cheney, Treasury Secretary Paul O'Neill, Commerce Secretary Don Evans and Energy Secretary Spencer Abraham.

Bush has said the California crunch is a state problem, not a federal one. But by participating publicly in the meeting, he signaled it is moving up on his agenda. The group met without him last week.

Administration officials said they did not expect concrete proposals to emerge from the meeting. But one aide said the group was likely to set out a framework for studying the nation's energy needs.

On Sunday, Cheney again hinted that the administration would explore easing environmental regulations that have hindered building new power generators. ``California's probably the toughest state in the country today in which to build a power plant,'' he said on ``Fox News Sunday.''

Bush also was dispatching top energy officials to meet with governors of Western states affected by the crunch.

The new president opened his term last week with a strong emphasis on education, an area where he has both expertise and strong support for change.

This week, however, he is stepping into thornier issues â€” California's power crunch, the divisive religion-based action initiative and his plan to provide prescription drugs to seniors through the Medicare program. He intends to formally propose the drug plan later in the week.

Bush, borrowing elements of a congressional Republican plan, pledged to revamp the entire Medicare program, giving senior citizens a choice of health plans, including some that offer drug coverage.

But Bush said this overhaul would not take effect for four years. In the meantime, he would give states money to help low-income seniors pay for drugs.

Critics question the wisdom of creating a new web of programs that may disappear four years later. They also argue that once created, the grants would be hard to stop after four years.