[Congressional Record Volume 140, Number 66 (Tuesday, May 24, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              OPPOSES BLACK LUNG BENEFITS RESTORATION ACT

                                 ______


                          HON. CASS BALLENGER

                           of north carolina

                    in the house of representatives

                         Tuesday, May 24, 1994

  Mr. BALLENGER. Mr. Speaker, I am opposed to H.R. 2108, the Black Lung 
Benefits Restoration Act.
  The Black Lung Benefits Act, enacted in 1969, was designed to provide 
benefits to coal miners who were totally disabled by black lung 
disease--a respiratory disease resulting from inhalation of dust and 
other particles. The program was designed to be temporary and claims 
filed after 1973 were to become the responsibility of the State 
workers' compensation programs. It was generally believed that the 
program would not be needed once individual States developed adequate 
occupational disease compensation systems. This change never happened 
and the Black Lung Program continues today. Since inception, over $30 
billion has been spent providing disability and medical benefits to 
around 225,000 miners and survivors. The annual program costs exceed 
$1.5 billion.
  H.R. 2108 creates many inequities in the current program and results 
in substantial expenditures for Black Lung benefits. This legislation 
treats the Black Lung Trust Fund as if it were an unlimited source of 
revenue for benefits regardless of the claimant's eligibility. Control 
is needed to limit the expenditure of vast amounts of Federal resources 
on the creation of a new, wasteful program. Independent analysis by an 
actuarial accounting firm estimates that the bill, over 5 years, would 
result in costs of over $1 billion. These higher costs would have a 
financial impact on the coal industry as well as many electric utility 
customers who use coal-generated power. The most expensive provisions 
are those permitting refiling of previously denied claims, the medical 
evidence requirements, and the interim benefit provisions.
  Unfortunately, the Congressional Budget Office [CBO] estimated that 
the bill will only cost the Federal Government $195.5 million over 5 
years. Obviously, there is a vast difference between what the 
independent source believes to be the cost and the CBO estimate. In the 
end, the taxpayer will be responsible for picking up the tab for this 
expensive expansion.
  The bill will significantly add to the Federal deficit. H.R. 2108 
fails to include any financing mechanism to offset the projected cost--
violating the pay-as-you-go provisions of the 1991 budget agreement. 
Unless changes are made in the Black Lung Program, other programs such 
as child nutrition or vocational rehabilitation may have to take a hit 
to pay for the provisions in the bill.
  Finally, the legislation places enormous burdens on the Black Lung 
Trust Fund, which is funded by an excise tax on coal. The self-
sustaining trust fund is currently $4 billion in debt to taxpayers and 
has operated in the red for years. The trust fund has regularly 
borrowed money from the Federal Government to make-up the shortfall. An 
amendment was offered during debate that simply stated that none of the 
provisions of the bill would become effective until the total 
indebtedness of the Black Lung Trust Fund is less than $600 million. 
Unfortunately, I was with a group of constituents from my district and 
missed the rollcall vote on this amendment--rollcall 181. Had I been 
present, I would have voted ``aye'' to stop a future taxpayer bailout 
of the trust fund.

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