[Congressional Record Volume 140, Number 39 (Wednesday, April 13, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 13, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 THE BUDGET RESERVE ACCOUNT ACT OF 1994

                                 ______


                         HON. MICHAEL N. CASTLE

                              of delaware

                    in the house of representatives

                       Wednesday, April 13, 1994

  Mr. CASTLE. Mr. Speaker, today I am introducing legislation to 
require Congress to set aside funds to pay for natural disasters and 
other national emergencies. I want to thank my colleagues Rob Andrews, 
Bill Orton, Peter Blute, and Jack Quinn for joining me as original 
cosponsors of this legislation. Our bill will make planning for 
emergency spending part of the annual budget process and will require 
Congress to set aside funds in a budget reserve account to be available 
only in the event of a natural disaster like the recent Los Angeles 
earthquake or the floods in the Midwest.
  These funds will be on budget. The funds in the reserve account will 
be included in the annual budget resolution and would be within the 
discretionary spending limits for the appropriations bills. The funds 
can only be spent for natural disasters and national security 
emergencies as designated by an act of Congress. If the funds are not 
used by the end of the fiscal year in which they are appropriated, they 
will not be spent for other purposes and will only be used to reduce 
the deficit.
  Everyone of us in Congress realizes we have to be able to provide the 
funding needed to respond to an earthquake, hurricane, or flood that 
has devastated a community and upset thousands of lives in an area of 
our Nation. However, like many of my colleagues, I am outraged that our 
Government makes no attempt to plan for the actual amount of money 
which will be needed for these emergencies. Instead, we wait until the 
disaster is upon us and there are Americans in need of immediate 
assistance. The funding to meet this real need is declared to be 
emergency spending and not subject to our budget laws and spending 
caps. Because we want to help people in real need as soon as possible, 
Members are forced to vote for billions in emergency spending which 
directly adds to the deficit. To make matters worse, unrelated 
nonemergency spending is often added to these emergency spending bills.
  The most recent example is the 1994 Emergency Supplemental 
Appropriations bill which provided funds for the victims of the Los 
Angeles earthquake. This bill also included funds for the renovation of 
Penn Station in New York and the new FBI facility in West Virginia. 
Regardless of the merits of these projects, they have no place in an 
emergency spending bill which is not subject to the spending limits 
required by the Budget Enforcement Act. The legislation I am 
introducing today will end this practice.
  The bill will amend the Congressional Budget Act of 1974 to provide 
for budgeting for emergencies through the creation of a budget reserve 
account. Beginning in fiscal year 1996, the annual congressional budget 
resolution would set a total annual amount to fund Federal assistance 
for natural disasters and national security emergencies. The funds 
would be part of the section 602 allocations, but would be set aside by 
the Appropriations Committees in the budget reserve account. They would 
be available only for emergencies and could not be spent for any other 
purpose. If the funds are not obligated in the fiscal year they are 
appropriated they would revert to the U.S. Treasury for deficit 
reduction.
  My legislation would also amend the 1985 Gramm-Rudman-Hollings 
Deficit Control Act to repeal Congress' authority to appropriate 
emergency funds not subject to the annual spending limits.
  The creation of a budget reserve account would address two critical 
problems. One, it would require Congress to plan for emergencies which 
inevitably occur and set aside funds to pay for these disasters. And 
two, it would require that this spending be part of the annual budget 
process and subject to the discretionary spending limits. This will 
help end the practice of adding unnecessary pork barrel projects to 
emergency spending bills.
  As I stated earlier, ever Member of this House wants to provide 
emergency aid to our citizens in need as soon as possible. We can meet 
this goal in a fiscally responsible manner. The budget reserve account 
will correct these serious problems and restore fiscal responsibility 
and plain common sense to the budget and disaster relief process. I ask 
my colleagues to cosponsor and support this much needed budget reform 
effort.

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