[Congressional Record Volume 141, Number 13 (Monday, January 23, 1995)]
[Senate]
[Pages S1310-S1339]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNFUNDED MANDATE REFORM ACT
The Senate continued with the consideration of the bill.
Mr. GLENN. Mr. President, I have to rise to comment on the statements
just made by my distinguished colleague from Wyoming.
I think we need to review what has happened here. This revisionist
view that was just expressed of what happened last year, and what so
far has occurred this year, is a little strange to me having lived
through last year and what has happened this year.
You know, we voted it out of committee. I was chairman of the
Governmental Affairs Committee last year. We voted out in August the
unfunded mandates legislation. Senator Mitchell wanted to bring it to
the floor. We tried to bring it to the floor. There was so much delay,
I think we had 20 some cloture votes filed against the Republicans last
fall. It was a scorched-earth policy and they were taking great pride--
some, not all--on the other side. Some absorbed what was going on to
their credit. But on the other side there was a scorched-earth policy
of, ``Don't let anything get through.'' And we found objection and all
sorts of procedural matters being brought up just to delay, to delay.
To say now that after November 8 there is some great mandate that says
that we move forward on all these things that we considered last year
and wanted to bring up and could not because of the Republican
filibusters on the floor of the U.S. Senate, and now to blame us for
not getting these things through, is about as clearly a revisionist
view of what happened last fall as anything could be.
The statement was made that the Democrats enjoy this kind of delay,
and we are putting through what was referred to as CYA amendments. And
I think we all know on the floor what that means. Those are not my
words. Those are the words of the Senator from Wyoming.
No one enjoys delaying anything on our side that I know of around
here because most of the people on our side of the aisle are in favor
of the unfunded mandates legislation. We just want to see it go through
in a form that it can be administered and be good.
It was said that we put out our press releases on this thing, and
talked about how we ignored completely the fact; that the reason we did
not have congressional coverage legislation last year and unfunded
mandates last year was somehow the fault of Democrats. Nothing could be
further from the truth. We had them on the calendar ready to be brought
up. That is fact. That is not a revisionist view of what happened last
year.
Now somehow my colleague from Wyoming indicates that the Republicans
are trying to force this and the Democrats are opposing it as though
the Democrats were not for it last year, and we were being opposed by
the Republicans last year.
He talks about Democratic gridlock of the past. He says that November
8 brought all of this home, that all the chickens came home to roost.
Why bring up this litany? Well, he said the situation of the past week
where the Democrats were somehow--and I think I wrote down the words
correctly--were trying to continue their policy of being ``overlords''
of years past. Those are harsh words. And the ``stonewalling''--that is
another word--``stonewalling'' of the Democrats, and that the majority
would eventually prevail; and that the Democrats seem to think with
their gurus that there is some political benefit to blocking unfunded
mandates.
Mr. President, those remarks are about as ridiculous as I can think
of here after we tried last year to get congressional coverage and get
unfunded mandates through and were blocked repeatedly because of
procedural steps taken on the Republican side to block us even from
consideration. We did not have time to consider unfunded mandates. We
brought them out of committee in August.
There were statements about we were trying to delay their train. No.
That is not true. Let me just recount for the record so we get the
facts straight. S. 993 was introduced last year in the Senate. That is
what we were trying to get through. After the November 8 election it
was felt that the House was probably going to come up with a stiffer,
tougher bill than S. 993, although all parties, including the big seven
of State, county and, local officials--the big seven different groups,
as they are called--were in favor of S. 993 last year, and we had some
67 cosponsors. We could have passed it, just like that, if we had not
had the delay occasioned by the Republican's scorched-earth, do-not-
let-anything-go-through policy of last fall. We could have gotten it
through last fall.
But what happened then after the election this year? I will tell you
what happened after the election this year. They said the House is
going to come up with a tougher bill and we had better move our bill
here to make it a little bit tougher so that perhaps the Senate bill
can prevail, something the whole Congress can get behind and get passed
because we need to deal with unfunded mandates.
So I did not fight that. Our staffs all worked together and came up
with some new proposals here, and there are some tougher mandates here.
Maybe we have gone a little far in some of the consideration of our
people that were one or more of the 67 cosponsors of last year. But we
came up there with a new bill, S. 1.
(Mr. THOMAS assumed the chair.)
Mr. GLENN. Senator Dole, the majority leader, went before the
Governors Association and said he thought this was important enough
that he would make it S. 1, the prime bill before the Senate, to be
brought up as the first bill this year. I agreed with that. I have been
an advocate of correcting this unfunded mandates problem for a long
time. We worked on this for the better part of 2 years with my
distinguished colleague from Idaho, Senator Kempthorne, the floor
manager on the other side. I did not quarrel with that. But now we are
being blamed somehow for not going ahead with this. That is just not
right.
But what happened this year? Let us follow this thing through.
Because of the priority accorded this legislation, it was referred to
committee on the following timetable: Voted off the Senate floor to
committee; sent to committee. It was introduced on the floor one day,
and sent immediately to committee with a hearing to occur the following
day, with the agreement that the
[[Page S1311]] markup on the bill would occur the next day--one, two,
three; introduction, committee hearing, committee markup. Just like
that, and bring it back to the floor in short order.
Now what happened? We got it over and had the markup, and a lot of
people had some legitimate concerns about some of the things that had
been put into the bill when it became S. 1 this year--using the basis
of S. 993, but going beyond that. There were concerns about this. So I
requested that the committee markup not be done, as I recall, on a
Friday. We asked that this be put off over the weekend so people could
find out what the changes were; so we would know what we were voting
on. This was not going to be a rubber stamp. There was no mandate that
came out of the November election that said we now have to approve
everything the Republicans now suggest because they are in the
majority. We wanted to know what the changes were and let everyone else
know what the changes were. That was the purpose of asking that this be
put off over the weekend.
So it was put off over the weekend. We had the markup on Monday. Then
what happened? We went to the committee and we had a number of
substantive changes--these were not frivolous or delaying items at all.
They were amendments that we had prepared. I had some and Senator
Levin, in particular, who did a real analysis of this legislation, had
substantive amendments about how specific parts of this bill would be
applied. He wanted to clarify some of those things. Do you know what
happened in committee? In committee, we were not even permitted to
bring up our amendments. We requested to bring up amendments and were
told, ``No, leadership wants this back up on the floor right away and
any amendments will be dealt with on the floor.'' We thought this was
not the way to go. We objected and we had some rollcall votes on
different substantive things. These were not delay items, they were
substantive items to be brought up in committee.
On a straight party-line vote, it was said, no; we cannot consider
those things. Those will be considered on the floor. We were voted down
on a party line basis. We got rolled on every single one of them. Then
it was stated, ``We are going to send this to the floor without a
committee report.'' The importance of a committee report--if anybody
has ever read through one of these bills with the technical language,
the whereases and therefores, and everything that makes it conform to
the whole United States Code, to the average layman, it is virtually
unintelligible, and to a lot of Senators, too.
So what do we have? Normally, as a requirement, we have a committee
report, and it is carefully written. It explains in layman's language,
going through each section of the proposed legislation, exactly what it
means, giving the pros and cons on it so every Member and staff member
working on a particular piece of legislation, when it comes to the
floor, will be able at that point to have an understanding of what the
legislation provides.
By and large, we rely on those committee reports. That is the
importance of them. We objected to sending the legislation to the floor
from the Governmental Affairs Committee without the committee report
being filed. In fact, we thought it was important enough that after
some discussion of it, and we were still being denied that right, it
was brought up where we finally insisted on a record rollcall vote on
it, and, once again, we got rolled--still with the provision that we
could bring up anything we wanted on the floor. So over our objection,
it was voted out.
I understand that our committee chairman, Senator Roth, was under
considerable pressure from leadership to bring this to the floor that
day, no matter what. I appreciate his position on that. Let me just say
this. I have been around the Senate now for over 20 years, and I was
chairman of the committee 8 years. Never in the 8 years I was chairman
did I ever have our majority leader say: I want you to roll this
through committee no matter what, and bring it out to the floor without
a report on any piece of legislation.
Occasionally, we sent legislation from the Governmental Affairs
Committee to the floor without a report, but only with the agreement of
the minority, and then usually only on bills that were comparatively
innocuous and not major pieces of legislation, as this is.
This is landmark legislation. This changes the way we have operated
for 60 years and starts moving things back in a different direction, to
a different Federal responsibility, a different relationship, Federal,
State, and local. That is the reason I call this landmark legislation.
It makes the first steps--it is the first major piece of legislation
that makes steps in that direction.
What happened? We got to the floor, the bill is called up, and all at
once there is a move to try to curtail amendments, keep them to a
minimum, saying ``We have to get this through; we have to beat the
House,'' as though this was a legislative drag race, and more important
than the substance of this legislation.
I predicted in committee before this was voted out--first, I will
give a little bit of background. Usually, in committee, you try to take
care of all of the substantive amendments anybody has and they are
focused on that piece of legislation. Usually, you do not have a lot of
extraneous amendments come up in committee because people are focused
on that piece of legislation. We were not permitted to do that this
time around. Then when a bill comes to the floor, if it has had all
that kind of due consideration in committee, what happens on the floor?
Then you are on good grounds to say we have dealt with the substantive
matters as we see it in committee, and we brought this out as a pretty
good, clean bill.
If somebody really has something that deals with substance, let us
consider it. But other than that, we are going to try to defeat other
amendments that can be put on in the State, extraneous amendments that
can be put in, because the Senate has no germaneness rules, unless we
are under cloture or for certain applications on certain appropriations
bills. But we are going to say that--we will try to say, OK; whichever
side of the aisle puts on extraneous amendments, we have dealt
substantively with this in committee, and so we are going to oppose all
those, no matter how meritorious they might be on their own
freestanding bill, if it was put in as such. We are going to oppose it
in legislation on the floor.
I predicted in committee that if we brought this bill out without the
substantive amendments being taken care of in committee, this bill--I
think my words in committee were that this bill was going to draw
amendments like flies to honey. And it sure has. We got to the floor--
and I think it is important that everybody understand this so the
remarks of the Senator from Wyoming of a few minutes ago are
understood. His revisionist view of what happens does not square with
the facts.
We got to the floor and what happened? Senator Byrd objected to the
fact that we had not had the committee report. I indicated the
importance of that a few moments ago for legislation like this, which
is landmark legislation. Senator Byrd very properly objected. He said
that this was important legislation, he wanted to see the committee
report. When could we have that committee report available?
That is what the debate was about, for about 2 days here. The debate
was not about the substance of whether unfunded mandates problems
should be corrected or not corrected. The debate was about the
procedure that was used in bringing this to the floor and whether we
should have a report so all Members would have the benefit of the
thinking of committee members and would be permitted to put minority
views in that committee report.
Now, in committee they said that they would put the committee report
in the Congressional Record. We said, ``What about the minority views
that usually goes along with it?'' They said, ``You could also put
those in the Congressional Record if you wanted.'' That is a very, very
poor substitute for our normal procedures here. That is exactly what
Senator Byrd disagreed with and what we fussed about back and forth on
the floor here for 2 days.
At the end of that time was when the majority leader decided that he
felt that there was delay on this and he filed a cloture motion. What
did that do? What did that do? Just as I predicted in committee, it
flushed out more amendments than anybody
[[Page S1312]] thought. Why? Because if your amendment is going to be
considered and cloture is going to be voted, your amendment has to be
filed at the desk before cloture is invoked.
And do you know what happened? We had 117 amendments--117
amendments--put forward to try to beat that cloture deadline, largely
because of the procedure that had been used up to that time. Now that
really threw things in a cocked hat.
I did not know where we were going at that time, because I knew that
the Republicans--and both sides knew this--did not have the votes for
cloture; did not have the votes for cloture. Did this mean, then,
without having the votes for cloture with 117 amendments, was this
going to kill our consideration of unfunded mandates? I did not know
whether it would or not.
It was in that context that I mentioned to my distinguished colleague
from Idaho, who has been on this for a long, long time--and he and I
have dealt very straightforwardly with each other on this--I mentioned
to him, if things really got bogged down--and it was bogged down over
the lack of a committee report and the fact we did have all the new
provisions in S. 1 that had not been in S. 993--that this was going to
delay things and it looked like we might not get it through the
Congress at all--and I think it is important we are getting legislation
through the Congress; I reiterate that I support this legislation,
fought for it as chairman of the committee, brought it out of the
committee last fall as S. 993--I suggested to my colleague from Idaho
that if push came to shove and it looked like we were not going to get
cloture and it was going to be a long stalemate on this and maybe even
have to pull the whole thing down eventually, we might want to consider
dropping back to S. 993 so we get something through. I think it is
important we do that.
And while the big seven that I referred to a little while ago
certainly does want S. 1 more than they wanted S. 993 last fall--they
were happy with that; now that they have gotten more, the chance of
getting more, they are very much enamored of S. 1. I understand that--
any drop back in that position to S. 993 would have been something that
they would abhor.
I mention this only in the context of where we were in the
legislative process at that time, with the possibility that there was
going to be an inability of the Republicans to invoke cloture, which
requires 60 votes, and they only had 53 for sure and what they could
peel off on our side. But that meant they had to get another seven
votes off the Democratic side and they could not do that, at least not
in the early round on this. If it meant this was going to be delayed
too much, then we were going to have to consider what we would do.
Would we pull down S. 1, as I saw a possibility of at that time, and go
back to passing something which everyone thought was adequate last
fall, although they liked the additional provisions of S. 1 now? That
was the context of where I talked to my distinguished colleague from
Idaho about that possibility.
The cloture vote was held. Cloture was not invoked. And so here we
are, with all of the delay of the past week, with nothing having really
substantively happened on this legislation.
Meanwhile, while all this was going on, we did have a group meeting,
both sides trying to define what amendments were important, which ones
were not, who really wanted to put their amendments in or who had put
in frivolous amendments of the 117 that we had submitted at the time
before the cloture vote. Fortunately, that group finally made some
progress on this. And so, after the Republican side did not invoke
cloture, we fell back to what was reality, I guess, and said, ``OK, we
will now try to get a unanimous-consent agreement that only about 60 of
those ones that people said yes, they really wanted to put them in,
only about 60 of these would be eligible to be placed in consideration
as amendments on this legislation.''
Meanwhile, we had gone through on the floor, during another 2 days or
2\1/2\ days, we had worked our way through a number of amendments. But
the way those had been structured, they had been submitted as second-
degree amendments by the parliamentary situation we were in at that
time, so before we went to this unanimous-consent agreement, Senator
Dole moved to strike through a series of five amendments that he
proposed. We went through the stripping of everything we had done
there. And that was probably the best thing to do. I do not quarrel
with that.
So now we start over with this finite list of amendments that can be
considered, and those are all to be submitted by 3 o'clock tomorrow
afternoon.
Now, today, we can get on with these amendments. We can debate
amendments today, but no votes will occur before 4 o'clock today.
Why do I go into all this detail? It is beginning to get a little
aggravating. I do not normally get up and gripe back and forth. I
usually stay out of these back-biting things, where these inflammatory
words are used here. And I think my record on the Senate floor would
show that I only rarely get up and try to respond when some of these
things are said. I leave it to other people who sort of enjoy getting
locked into that kind of verbal combat, I guess, for whatever partisan
purposes it may provide on either side of the aisle.
But for my distinguished colleague to come in this morning and talk
about us opposing this legislation when we tried to get it out last
fall and were blocked by the Republicans; tried very hard to get it
out. I was still trying down to the last 2 days of the session last
year to get it out on a unanimous-consent request and could not do it.
We had objections on both sides. The final objection did fall on the
Democratic side, let us be fair about this.
But the reason we got down to even considering it on a UC basis was
because there had been this scorched-earth, do-not-let-anything-through
policy on the other side that had prevented consideration of a lot of
bills, of which this and the congressional coverage bill were two.
To come on the floor and say that we are creating gridlock on the
Democratic side and say that we are using tactics we used when we were
``overlords of years past'' and to talk about the Democrats
stonewalling this legislation is about the biggest revisionist view of
history that I can think of.
That there are political beliefs being pushed for unfunded mandates
by our political gurus, our advisers, somehow advising us in this area
that we are trying to delay--``trying to delay this train'' was another
quote--that just is not true.
The reason I have taken this time to lay out what happened on this
bill is because I think it is important that everyone know exactly what
has happened. This is not a filibuster of S. 1 this year. The
filibuster, if there has been anything to be construed as a filibuster
on the floor of the Senate this year, is objections to the ramrod
procedures that were used to roll the minority in committee and not
even permit a regular committee report to be sent to the floor with
this legislation.
Now, that was flat wrong. I have never seen that done. I have been
here 20 years. I have never seen that done before on any committee I
have been on where at the specific request of the minority, even a
record rollcall vote that the minority requested, to try to say a
report will accompany this legislation, did I ever, ever, hear the
majority say, ``No, it has to go. We cannot have a committee report. We
will just put something in the Congressional Record. If we want
minority views they can be put in the Record. This is such a fast track
we have to bypass everything. We are in a legislative race with the
House of Representatives so we do not get behind the people in the
House somehow.
If this was some little innocuous bill that made no difference
whether it passed or not or of very little importance, I would not
think it is worthy of even standing up to correct the statements made
on the floor a little while ago that I am responding to.
This is not that kind of legislation. The days when I was growing up,
days of the Great Depression, were tough days. Okies headed west.
People headed for soup kitchens and so on. There was unemployment of
over 20 percent for 4 years, 25 percent for 1 year. They were tough
days.
Families had taken care of families up until that time, a Norman
Rockwell type of existence. In the days of the depression, people could
not do that anymore. People were hungry. There were
[[Page S1313]] soup kitchens. People were moving out of whole sections
of the country because communities and States could no longer take care
of their own and do it in an adequate fashion. Either could not or
would not. What has happened? The New Deal came in. FHA was put in.
There were a lot of programs. I will not try to detail all of those.
Starting with that premise--that States and local communities were
unable to take care of their own--was the premise of the New Deal, and
it moved into a whole new area of Federal activity.
Now, have some of the programs over the last 60 years built up and
gone too far? I would be the first to say that certainly we should
correct those. There is a move now to go back to let the States take
over a lot of these things that the Federal Government has been doing.
I think that is OK in some areas but not completely. I would not agree
with all of it. We need to do this carefully to make sure that the
social safety net that has been put together over the last 60 years and
that people have come to depend on, we can say rightly or wrongly,
depending on Democrat or Republican view, if that social safety net is
just thrown out and we let some States take up these services and some
States not, that will deal very unfairly with millions of Americans.
Now, I am all for unfunded mandates legislation. I support it. I
supported S. 993 last year and am a cosponsor of S. 1 this year. Do we
need to consider it carefully? Yes, we absolutely do, to make sure that
we do not do some damage while we are trying to do good and prevent
these unjustified mandates. Many of them are being just heaped upon the
States, heaped upon the States, at the same time, over the past 5 or 6
years, that we have been cutting down on some of the programs--
community development block grants, things like that. We have been
cutting down on programs that have sent much money back to help the
States.
So we have to do this very carefully. And to think that somehow the
minority is going to roll over and play dead and say, ``Yes, whatever
you want to do we will do it,'' without consideration of important
pieces of legislation, important amendments to correct some of these
matters.
Let me just very briefly--and I know I am taking a long time and
people are waiting--but let me just say this. Senator Byrd wants to
have an amendment, which was listed the other day, which would say,
basically, that as part of this bill where we say to an agency if the
emergency is not there but there is less money available, the agency,
then, can bring this up or can somehow judge how the money will be
spent and so on.
In other words, the question he raises is a good one. I am in support
of S. 1. I repeat that again. What he raises is a question: Are we
passing our legislative authority over to unnamed bureaucrats over
there; and what guarantee do we have that they will not go too far with
them. That is just one.
I have a series of some of the things that were left out with regard
to color and age discrimination. That was one. Another as to when the
point of order would lie. Are we going to permit it on every single
amendment? Are we going to have a point of order lie to begin with or
at the end of the amending process before final passage of whatever the
legislation is?
There is some uncertainty as to who would determine applicability
where we have a judgment is something a mandate or not. Is that
justified by the way the bill provides now with the presiding officer--
for example, meaning the Parliamentarian--who would determine what a
mandate is, or should that be by the Governmental Affairs Committee? We
have an amendment on that. That is substantive.
We have some that would clarify the differentiation between what
would apply in a public sector--that is, governments--as opposed to
what would apply in the private sector at the same time. We have
another one that would clarify that where a bill is reauthorized from a
past provision of law, a bill comes up at the end of its time to be
reauthorized--as the bill is now, it is not clear enough; it says that
this could not be challenged if it is over $50 million. We clarify that
the $50 million would only apply if a reauthorization went $50 million
beyond its previous requirements, which makes it compatible with the
rest of the bill.
Senator Levin has some amendments. He wants to propose that this is
important legislation, maybe we ought to sunset it so we are forced to
reconsider the implementation at the end of a certain time period. He
would have another one that, if a committee determines that there is a
significant competitive disadvantage to the private sector--for
instance, where there are competing electric generating plants between
the government and private sectors--should we clarify whether we are
beginning to have to move in and subsidize a requirement on the public
sector and not do the same thing on the private sector, which would
give a major advantage in some areas of light generation, sewer
provision, water, whatever, where there are competitive interests
between public and private businesses. I think that should be corrected
also.
We have a number of others here. I will not go through the rest of
them. I want to show that these are substantive.
Now, some put in over on the Republican side deal with judicial
review, when there is any question about a particular provision of the
bill, if a person could file suit in Federal court right off the bat.
Can we figure any way to possibly bring the Government to a halt faster
than that? By allowing everybody that disagreed with a particular item
to say, ``We will file suit.'' What is substantive is the point I am
making. I do not want to argue the merits. It is substantive. That
would be proposed by Senator Brown, I believe.
Motor-voter has been brought up again as a cost to the States. We
will have to go through motor-voter. Is that substantive? It certainly
is.
Impact analysis for independent agencies by Senator Domenici would
ensure analysis for impacts included for certain independent regulatory
agencies as FCC, FERC, FTC, and the Interstate Commerce Commission.
One on our list at this point that Senator Gramm may bring up is an
amendment requiring three-fifths of the Senate, making it much more
difficult to waive a point of order and get on with consideration of a
certain bill.
CBO estimates on conference reports would be required by another
amendment.
Senator Grassley has one that is on our list, at this point at least,
and I do not know whether he intends to push it, which would extend
application of the act to past and current mandates. I do not know, if
we went back on all previous Federal mandates without some limitation,
I do not know how many trillion dollars that might involve. That is an
amendment and it certainly is substantive.
I will not go on with these. There are a number of others like this.
The point I want to make by listing just some of these is that these
are very substantive amendments. They are things that are important to
iron out so that this landmark legislation, when it is enacted--I hope
it will be enacted--is done with all the best thinking of the Senate
and the House of Representatives so it can be as workable as possible,
can be used for, really, changing the direction of the relationship
between the Federal, State, and local governments.
Now, Mr. President, there are some others that I could list here
also, but I will not go through them. That is the reason I wanted to go
through this and explain exactly what happened and how we got to where
we are. And the fact of the argument so far, the debate back and forth,
has been about 90 percent on consideration of procedure and whether we
are adequately protecting everyone who might want to make substantive
changes to this piece of legislation, changes that might be very
valuable and be good and that all the big seven and everybody can agree
with are good.
And so being prevented from doing that in committee and the attempt
made here to push very rapidly once we got to the floor, that has been
the heart of the debate so far. That has been the disagreement so far.
So when I hear words that the Democrats are the ones delaying--it is
Democratic gridlock; it is just Democrats trying to be ``overlords of
years past,'' we are trying to stonewall--nothing could be further from
the truth. I do not care how many statements are made on the floor to
that effect.
[[Page S1314]] The statements that were made previously which
triggered my response here just were flat not true. I know from my
personal experience in caucuses on this side, what happened in
committee last year, and having been in committee this year where this
big, unnecessary push was made to push this stuff through too fast. We
need to consider this. It is very, very important legislation. I yield
the floor.
Mr. KEMPTHORNE addressed the Chair.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. KEMPTHORNE. Thank you, Mr. President.
Mr. President, I have listened to what my friend from Ohio has said.
I listened to what my friend from Wyoming had said. I just go back to
what I am trying to say, and that is, just as one of the critical
elements of the Senate bill before us, S. 1, is the fact that it is not
retroactive. I hope that we will refrain from being retroactive on the
history of what may or may not have happened with this bill, that bill,
what this side did, what that side did.
One of the benefits of S. 1 is the fact that there are 63 Senators
who sponsor this bill. I am proud to be a primary sponsor, but I would
not be here if I had not had the tremendous assistance of the Senator
from Ohio, and I would not be here if we did not have, during the
recess, the great assistance of Senator Roth, Senator Domenici, and
Senator Exon. Just in naming those individuals, I think we all realize
it is bipartisan. So here is an opportunity for this new Congress to
take up this vehicle which has been developed in a bipartisan fashion.
It is what our partners in the State and local and tribal governments
have said they want. It is what the private sector says they want.
So I ask all--and I am speaking to my side also--let us start looking
forward and not backward so that we can move this. I am committed to
the passage of S. 1, and I appreciate what the Senator from Ohio said
as to why he was discussing S. 993. But I think we all agree that is
not an option at this point.
This is the legislation for this Congress to consider, to pass, and
we will take what time is necessary through the amendment process to
perfect this so that a majority of Senators will know that this is
exactly what should come out of this body.
Unanimous-Consent Request
Mr. KEMPTHORNE. Mr. President, I ask unanimous consent that there be
30 minutes for debate on the pending amendment, to be equally divided
in the usual form; and that no amendments be in order prior to the
disposition of the pending amendment; and that following the
conclusion, or yielding back of time, the Senate proceed to vote on or
in relation to the pending amendment.
The PRESIDING OFFICER. Is there objection?
Mr. GLENN. Mr. President, I object.
The PRESIDING OFFICER. Objection is heard.
Mr. REID addressed the Chair.
The PRESIDING OFFICER. The Senator from Idaho retains the floor.
Mr. KEMPTHORNE. Was a question put to me?
Mr. REID. I was just attempting to seek recognition.
Mr. KEMPTHORNE. Mr. President, I should point out that apparently
there has been an agreement that there will be no votes until 4 p.m.
tomorrow, so that any votes that we establish will have to be after 4
o'clock tomorrow.
Mr. GLENN. The 4 o'clock limitation was 4 o'clock today, was it not?
The PRESIDING OFFICER. Under the previous order, the 4 o'clock
applies to tomorrow.
Mr. GLENN. Mr. President, I suggest the absence of a quorum.
Mr. REID. Will the Senator withhold?
The PRESIDING OFFICER. Will the Senator withhold?
Mr. GLENN. I withhold.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, I wonder if I could go ahead with my
statement and they can work out the problem.
Mr. GLENN. That will be agreeable to the Senator from Ohio and the
Senator from Idaho with the provision the Senator's remarks not be in
the middle of our conversation about when the votes are going to occur.
Mr. REID. My remarks are on the amendment that is pending.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, I am in support of the legislation now
before this body. I listened closely to what the Senator from Ohio and
the Senator from Idaho said, and I agree. This is bipartisan
legislation. I not only appreciate what the Senator from Idaho said,
but the manner in which he said it: That this legislation is sponsored
by a majority of the U.S. Senate and, as a result of that, the
legislation should pass.
But one reason it will pass is that there is ample opportunity for
amendment, and that is what is now going on. There are amendments
pending. The amendment that is now before this body asks that the
Mandate Commission analyze the costs associated with mandating States
convert to the use of metric measurements. It does not prohibit the
metric system or our efforts to convert to the metric system. It simply
recognizes that these efforts cost money and this cost is often borne
by State and local governments. This amendment requires the Mandate
Commission examine these costs and report on their amounts.
The reasons I support this legislation are myriad. But one main
reason why I support this legislation is that I have worked for a
number of years, going back to 1992, with Senator Nickles, from
Oklahoma, on legislation that would require that when bills come before
this body, there would have to be a cost estimate as to how much this
legislation would cost.
In addition to that, Mr. President, Senator Nickles and I would have
required that before regulations were promulgated by a Federal agency,
they would have to affix the cost to that regulation. That seemed
reasonable. Senator Nickles and I worked on this for a number of years.
In fact, it passed this body last year and was killed during the
conference aspects of the legislation. The previous year, it almost
passed.
The legislation that Senator Nickles and I sponsored would have
required the General Accounting Office to do the things I mentioned:
Report on costs to consumers and business, impact on national
employment, ability of U.S. industries to compete internationally, cost
to State and local governments, cost to the Federal Government, and
impact on gross domestic product.
So the unfunded mandate issue has been approached in a number of
different ways. The way that Senator Nickles and I approached the
legislation was a way of handling the congressional mandate issue. This
legislation, S. 1, is a more direct method, which I support.
However, I believe that the amendment process is going to make this a
better piece of legislation.
The amendment that is now before this body dealing with the metric
system is highly pertinent to this legislation. When Federal regulators
say to State and local governments, ``You utilize the metric system,''
they are saying a lot, because without question, Mr. President, that is
an unfunded mandate.
What costs must the State of Wyoming bear as a result of changing all
the road signs? It is a cost. The State of Nevada has the same problem,
and every other State. Federal regulators may impose this requirement
for the most well-intentioned reasons, but it can cost States a
significant amount of money to comply. We must recognize the
significance of requiring adherence to this new form of measurement and
recognize that there are increased costs associated this transition.
Are the costs necessary? That is what we are saying. These costs
ought not be shifted to State and local governments, and that is where
the cost is now being shifted.
While the amendment does not address this, maybe they really ought
not to be borne by private contractors also who do business with the
Federal Government. And they also will have to bear this burden.
The amendment now before this body that is pending would remedy this
cost shifting by establishing a 2-year moratorium on any Federal entity
requiring State or local governments to use the metric system of
measurement. It
[[Page S1315]] would allow agencies to continue pending projects if
suspension of the requirement would result in a significant increase in
costs.
This amendment, like the underlying legislation, is really about
unforeseen costs. It is about the unforeseen costs associated with the
implementation of legislation that, if passed, would really be
burdensome. And there may be some meritorious reason for the underlying
mandate--unfunded, I might add, requiring the metric system
conversion--there may be some meritorious reasons for that, but should
we not know the costs before we decide the merits of that issue? Under
this legislation that is now before this body, there is a mandate
commission which will study these types of costs and we will better
understand them in the future. Under the amendment now before this
body, the Commission will be required to study the costs associated
with the Federal Government's mandating the use of metric measurements.
Metric conversion is costing my State money. If the Federal
Government provides highway funds to Nevada, it can require that all
work be performed in conformity with metric requirements. I think that
is a waste of money. It require metric measurements regardless of the
costs borne to carry out this mandate.
We are building a new courthouse in Reno, NV. I think it would have
been a shame, as will be the requirement in the courthouse we are going
to build in Las Vegas, that they submit their bids using metric
measurements. The Las Vegas courthouse will require that. The Reno
courthouse that is now under construction did not require the
contractors to submit bids using metric measurements.
Mr. President, not only would this cost additional money for Nevada
and the city of Las Vegas and the city of Reno, but it would also cost
money to the local contractors. Indeed, this type of mandating
needlessly drives up costs of construction and frustration of the
people seeking these contracts. For these contractors that are unable
to convert, too bad; their bids are deemed unacceptable because they do
not employ a measuring system which they were never taught or never
knew would be required in the first place.
The State of Nevada and its cities are already suffering from the
imposition of costly unfunded mandates. And one reason I support this
legislation is because I hear from so many Nevadans about these costs.
Look, for example, to a small entity like Carson City, NV. According to
Price Waterhouse, the cost of Federal mandates for the fiscal year 1993
is over $4 million; for north Las Vegas, NV, about $1.5 million for
1993. These costs have consequences because State and local governments
are required to pay for them. Other programs, local in nature, are
basically laid aside because the money has to be spent on the mandate.
There is a limited amount of money to go around, and therefore there
are a limited number of projects they can undertake--worthwhile
projects.
Requiring metric conversion is just an added unfunded mandate. In
north Las Vegas, the money that was spent in 1993 for unfunded mandates
could be used to hire additional police to operate a safety key program
for children. That is one of the things they want but have not the
money to do; to improve and enhance maintenance of the waste water
treatment system in north Las Vegas; provide additional parks or
renovation of parks, maybe even hire some people to make sure the parks
are being operated correctly and are safe.
We could go on and on with the list of things that have not been done
as a result of the unfunded mandate money that had to be spent. Why
should we add the metric system conversion as another unfunded mandate?
Because that is what it is. If it is important enough to do the
unfunded mandate after the studies we require in the amendment, then we
will go ahead and do it. We can balance whether or not we need
additional police, more public works inspectors, improvement in our
parks, all these things, or we could waive those. But if left
unchanged, these costs simply will be used for things that the local
governments feel are unnecessary.
So, Mr. President, I congratulate and applaud my friend from North
Dakota for his wisdom in being the author of this amendment. As soon as
it was mentioned to me, I knew it was something I wanted to get
involved in because it is the right thing to do. This is what unfunded
mandates are all about. We have identified an unfunded mandate. Why not
examine the costs of this mandate?
Amendment No. 180, as modified
Mr. DORGAN. Mr. President, I appreciate very much the support of my
friend from Nevada, Senator Reid. Again, to restate it in one sentence,
I am not opposed to the metric system. I am opposed to the Federal
Government imposing mandates across this country on the metric system
in a way that does not make any common sense. I guarantee you, without
some intervention from this Congress in the past, we would already have
had road signs replaced all across this country that tell people how
many kilometers it is to the next rest stop because that is where the
bureaucracy goes with a mandate.
My only point is that I do not think we ought to spend taxpayers'
money pushing a mandate that makes no sense. If the private sector
wants to use the metric system to compete in the European countries or
wherever, fine. That is what they are doing; that is what the market
system would direct them to do. I do not want us to spend precious
taxpayers' money doing things that do not make common sense, and that
is the concern I have about the current mandate conversion act.
Now, Mr. President, I visited with the Senator from Idaho, and I
think the Senator from Ohio also understands--I visited with him as
well--I am willing to modify the amendment in a manner that I think is
acceptable to the Senator from Idaho and the Senator from Ohio. I would
like, if appropriate at this time, to say that my modification is at
the desk and ask the desk to report the modification of my amendment.
The PRESIDING OFFICER. The Senator has a right to modify it. If there
is no objection, the clerk will read the modification.
The legislative clerk read as follows:
The Senator from North Dakota [Mr. Dorgan] proposes an
amendment numbered 180, as modified.
Mr. DORGAN. I ask unanimous consent the modification be considered as
read.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment, as modified, is as follows:
On page 41, between lines 2 and 3, insert the following:
(4) Treatment of requirements for metric systems of
measurement.--
(A) Treatment.--For purposes of paragraphs (1) and (2), the
Commission shall consider requirements for metric systems of
measurement to be Federal mandates.
(B) Definition.--In this paragraph, the term ``requirements
for metric systems of measurement'' means requirements of the
departments, agencies, and other entities of the Federal
Government that State, local, and tribal governments utilize
metric systems of measurement.
Mr. DORGAN. Mr. President, I will simply observe that what I have
done with this modification is removed the moratorium portion of the
amendment but retained the portion of the amendment that will require
the Commission on Unfunded Mandates to give us the information in the
2-year study of these costs so the next time we come with this kind of
amendment, we have the data necessary to support it.
I do not expect to cease and desist in my efforts to prevent the
Federal Government from leading in a direction that I think is unwise.
I admit, and I think others admit, we do not know what this costs. That
is the point of it. Retaining that portion of the amendment will
require the study be done to give us the information so that we do know
what it will cost, and in 2 years I hope we can come back and squash
the requirement that exists for the Government to want to do things
that are unreasonable.
I might also say, in the middle of all this, we will intend once
again to prohibit DOT from doing anything that spends the taxpayers'
money to convert road signs in the meanwhile. So with that, I ask that
the two managers of the bill support this modification.
Mr. GLENN. Mr. President, I compliment my friend for moving in this
direction. I think this makes a lot of sense. Since there are a lot of
questions
[[Page S1316]] about this, to do a study of it I think is fine.
I would like to clarify in the legislative history here on the floor,
though, as to whether it is the Senator's intent that the study being
done will include the estimated costs? After all, that is what this
bill deals with and unless the costs were going to be above $50 million
it would not be a threshold item for this particular item.
Mr. DORGAN. That is my intention.
Mr. GLENN. In the remainder of the legislation, outside the part that
was stricken, I do not see any specific reference to costs. It said it
will consider requirements for a metric system of measurement to be
Federal mandates. I would like the legislative history to show that
would include in this study that will come back to us an estimate, if
at all possible, of the costs to the Federal, State, local, and tribal
governments.
Mr. DORGAN. Mr. President, it is written in a manner designed to
overcome any problems that would have been imposed by the threshold of
the bill. This would require the Commission to study it irrespective of
the threshold.
Mr. GLENN. But I ask my colleague, is it his understanding this would
include an estimate of the cost of executing this Federal mandate?
Mr. DORGAN. That is the purpose of it. That is correct.
Mr. GLENN. That is fine. I am willing to accept it.
Mr. KEMPTHORNE. Mr. President, I want to commend the Senator from
North Dakota because, again, as I listened to the points he has raised,
this is exactly why we need to have a bill like S. 1. I listened to my
friend from Nevada, and I will have to paraphrase, but very close to
this: Senator Reid said that there may be merit to this unfunded
Federal mandate, but should we not know the cost before we implement
it? And he is absolutely right.
That is why with S. 1, once it is enacted, we are going to have that
process so Congress will know the cost, any adverse impact to the
competitive balance between the public and private sector, before we
cast our votes.
Again, I appreciate what they have said. I think they are helping us
to lay out the fact that there is a need and the fact, too, that S. 1
fills that need.
So I am happy to accept the amendment as modified from the Senator
from North Dakota, and thank him for his amendment.
Mrs. KASSEBAUM. Mr. President, I rise today in support of Senator
Dorgan's amendment, which seeks to address burdensome metric mandates.
As my colleague from North Dakota has stated, metric requirements
impose serious burdens on State, local, and tribal governments and
offer a perfect example of the careless practice that the underlying
legislation seeks to address.
I became involved in the metric debate during the last Congress, when
I introduced legislation that would have prohibited Federal agencies
from requiring State and local governments to convert highway signs to
metric units. At that time, the Federal Highway Administration was
considering plans which would have, in effect, forced financially
strapped State and local governments to cancel or postpone highway and
infrastructure improvements in favor of metric sign conversion.
Literally thousands of Kansans contacted me to protest this
unnecessary and costly change and to ask why we in Washington write
laws and then pass the costs along to State and local governments.
Fortunately, their opposition and our efforts in Congress were
successful in convincing the Federal Highway Administration to abandon
its plans for metric sign conversion.
While I was pleased with that decision, I remain concerned about the
prospect of similar metric mandates and believe that we must act to
ensure that their effect on State, local, and tribal governments is
fully understood. This amendment would accomplish that goal, and I urge
my colleagues to adopt it.
The PRESIDING OFFICER. If there be no further debate, the question is
on agreeing to the amendment.
The amendment (No. 180), as modified, was agreed to.
Mr. KEMPTHORNE. Mr. President, I would also like to note Senator
Kassebaum, I know, has an interest in this issue. So we would like to
certainly note that. And, too, in S. 1, there will be a process, the
ACIR, which will look at existing mandates such as this mandate. So
again we have laid out a process that I think will be effective.
I yield the floor.
Mr. GLENN. Mr. President, I move to reconsider the vote.
Mr. DORGAN. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER. The Senator from North Dakota.
Amendment No. 178
(Purpose: To require the Board of Governors of the Federal Reserve
System to submit a report to the Congress and to the President each
time the Board of Governors of the Federal Reserve System or the
Federal Open Market Committee takes any action changing the discount
rate, the Federal funds rate, or market interest rates)
Mr. DORGAN. Mr. President, I send an amendment to the desk and ask
for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from North Dakota [Mr. Dorgan], for himself,
Mr. Harkin, and Mr. Reid, proposes an amendment numbered 178.
Mr. DORGAN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the end of the bill, add the following:
TITLE V--INTEREST RATE REPORTING REQUIREMENT
SEC. 501. REPORT BY BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM.
(a) Report Required.--Not later than 30 days after the
Board or the Committee takes any action to change the
discount rate or the Federal funds rate, the Board shall
submit a report to the Congress and to the President which
shall include a detailed analysis of the projected costs of
that action, and the projected costs of any associated
changes in market interest rates, during the 5-year period
following that action.
(b) Contents.--The report required by subsection (a) shall
include an analysis of the costs imposed by such action on--
(1) Federal, State, and local government borrowing,
including costs associated with debt service payments; and
(2) private sector borrowing, including costs imposed on--
(A) consumers;
(B) small businesses;
(C) homeowners; and
(D) commercial lenders.
(c) Definitions.--For purposes of this section--
(1) the term ``Board'' means the Board of Governors of the
Federal Reserve System; and
(2) the term ``Committee'' means the Federal Open Market
Committee established under section 12A of the Federal
Reserve Act.
The PRESIDING OFFICER (Mr. Ashcroft). The Senator from North Dakota.
Mr. DORGAN. Mr. President, if I might, I would like to describe very
briefly this amendment. I know Senator Reid would like to speak on
behalf of the amendment, as well, and I think there are a couple of
other Senators, also. I would like to, following that, get a recorded
vote ordered on this amendment. This is an amendment I shall not modify
and I very much intend to get a recorded vote on.
This amendment deals with the Federal Reserve Board. The mere mention
of the Federal Reserve Board puts students to sleep, at least in high
school and in college. Start to study issues of the Federal Reserve
Board and monetary policy and you very soon have a class that is fast
asleep. Yet, the Federal Reserve Board and its conduct of monetary
policy in this country has a substantial impact on virtually every
American. The Federal Reserve Board controls America's money supply.
Why am I talking about it in the context of a bill on mandates? Very
simply, because the Federal Reserve Board will meet in a closed room,
shut the door, and make a decision about America's money supply and
mandate--it has at least in the last six instances--an increased
interest rate be paid by the American people.
That is kind of the mother of all mandates, if you think about it.
Every American will have their lives changed as a result of a decision
made by folks who portray themselves as a bunch of chaste economic
monks who get in this room and make decisions about money. What they
are is a bunch of economists and bankers who find themselves a room
down in the Federal Reserve
[[Page S1317]] Board. They convene in the room, incongruously named the
Open Market Committee, in a room that is closed. So I would like to
call it the Closed Market Committee. Let us no longer call it the Open
Market Committee. These folks go into the Open Market Committee in a
closed room, lock the door, and make decisions about America's money
supply. And at least in the last six instances over the last year, they
have decided to increase interest rates. That is, as I said, the mother
of all mandates.
You do not enjoy the opportunity of saying, ``I am sorry, I disagree;
I am not going to pay increased interest rates.'' Everybody pays them.
The Federal Government pays them. I will bet there are not many Members
of the Senate who know how much the Federal Reserve Board's six
interest rate increases will have increased the Federal deficit in the
coming 5 years. Any guesses? Somewhere about $125 billion.
About 1\1/2\ years ago, we wrestled in this Chamber with this issue
of deficit reduction. We had massive debates. The American people were
involved. Some were upset and incensed and sending letters and calling.
Others were supportive. We were trying to reduce the Federal deficit in
a democratic way: Increasing taxes, decreasing spending. All of it very
controversial, and all of it subject to great emotional debate in the
open. But the Federal Reserve Board goes into a room, shuts the door,
and in a secret process decides we are going to mandate six interest
rate increases, and they have imposed an additional cost on serving the
public debt of close to $125 billion.
In other words, they took back with no public debate one-fifth of all
that we did--one-fourth to one-fifth of all that we did--in this
deficit reduction debate that we had in Congress.
They did not ask us if they could do that, they just did it. But that
is not the half of it. It is not just the $125 billion increase in
serving the debt, debt service costs, that we will have experienced in
the next 5 years. It is the private sector. Everybody who has a home
with an adjustable rate mortgage is now paying more.
I had a fellow come up to me this weekend and tell me he is paying
$125 more for his house payment than he did a year ago. Why? Magic?
Voodoo? No. The Federal Reserve Board, that is why. They made decisions
that affect the lives of virtually every American. I mentioned what the
public sector cost is, just for the Federal Government, of the
decisions by the Fed, the mandate in interest rate increases: a $125
billion increase in 5 years. What about the private sector? Mortgages
they pay, all kinds of other consequences? Mr. President, $218 billion
in increased costs over 5 years for the private sector.
So the plain fact is the Federal Reserve Board imposes, by its
mandate on interest rates, enormous costs on the American people. My
amendment is very, very simple. No one--not the slowest thinker--can
allege not to understand this. My amendment says when the Federal
Reserve Board meets and increases interest rates--incidentally, they
are meeting in the next week or so and some suggest they will probably
increase interest rates again--they have a responsibility within 30
days to send to the Congress and to the President their evaluation of
how much additional cost they have imposed on, yes, the public sector,
the Federal Government, State and local governments, and also the
private sector.
I asked Alan Greenspan in hearings some while ago: Do you, before you
make these decisions, assess how much you are going to impose on others
in terms of costs? If they do, it is not available to us. So I do not
know. But I submit that they ought to. If someone will be making
decisions in this country that will increase the Federal deficit by
$125 billion in 5 years, or lay on additional costs in the private
sector of $218 billion over 5 years, they ought to be telling us that.
The Senator from Idaho, when he talks about mandates, or the Senator
from Ohio--you can describe dozens of mandates--I defy anybody, and I
am going to listen for the next week, I defy anybody under any
circumstance to describe for me any mandate that comes even close to
this mandate, comes even close to imposing $218 billion in added costs
on the private sector.
You will not find one. This is the big mandate. This is the big one.
This is the one that imposes enormous costs, and it is done in secret;
done really without very much debate. It is interesting. Very few
people want to talk about interest rates in the Federal Reserve Board.
Alan Greenspan, Chairman of the Fed, came up here the other day, and,
he said, ``I think that the Consumer Price Index really boosts
inflation one-to-one and a half-percent beyond where it really is.'' I
guess he said one-half of 1 percent to 1 percent. He said it overstates
what inflation is.
We have had 4 successive years of decreased inflation. This year it
is 2.7 percent. If Alan Greenspan thinks maybe that is a percent and a
half over where it ought to be, that means the real inflation is 1.2
percent. Then I would ask him, if that is the case, what on Earth are
you doing increasing interest rates six times putting your foot on the
brakes to shut down the American economy and throw this country into a
recession if inflation is at 1.2 percent? What on Earth are you doing?
On whose behalf are you doing it?
We have different constituencies in this country. The Federal Reserve
Board serves it. I might say its constituency represents the large
money center bank interests. In fact, the open market committee that
goes into the room and makes decisions there are people who are voting
on those decisions who are each regional Fed bank presidents that are
appointed by no one that I am aware of except their private boards of
directors which are controlled by bankers in their region. They are not
confirmed by anyone. So they are making public policy decisions in a
manner designed--I assume in a manner designed--to serve their
interests. Do you think they will come to town and say, ``The heck with
my board of directors, I could care less about those folks, and I am
going to serve somebody else's interests?'' I have great trouble with
the whole concept of the way the Fed has been structured, and the way
it has been behaving.
But my amendment in this circumstance is very clear and very simple.
When the Federal Reserve Board takes action to increase interest rates,
that is the big mandate in this country. Let us have them within 30
days send a report to the Congress and a report to the President saying
here are the costs from our assessment, here are the added costs that
we have imposed on governments and on the private sector.
I intend to seek a record vote on this. I would hope very much that
it might be accepted. To those who are concerned about mandates, I say
let us not be concerned about the little ones, not the nuisance
mandates so much. Let us be concerned about the biggest one. Let us be
concerned about the center pole in the mandates, the center pole
Federal Reserve Board mandating mandates aside from the wisdom of the
fact that what they are doing is completely out of sync with what they
should be doing. When they do it any time in the future, it seems to me
they have an obligation to report to us who will bear the cost of these
mandates.
Mr. President, I yield the floor. I note my colleague, Senator Reid
from Nevada, is also going to speak on this issue.
Mr. REID addressed the Chair.
The PRESIDING OFFICER. The Senator from Nevada [Mr. Reid].
Mr. REID. Mr. President, I would like to extend my congratulations to
the Senator from North Dakota of course for offering his amendment of
which I am a sponsor, but more importantly for speaking out about the
Federal Reserve.
For years I have sponsored legislation that would call for an audit
of the Federal Reserve system. I have offered that amendment every
year. Every year the legislation gets nowhere.
I think it would be interesting to know about the Federal Reserve. I
think we should audit the Federal Reserve. It is taxpayers' money that
is being used there. But we do not do that.
Senator Dorgan spoke out on the secrecy of the Federal Reserve
system. He has spoken out on the Federal Reserve more than anyone that
I know in either body. But even though there is no entity in the world
that controls
[[Page S1318]] our lives more than the Federal Reserve System, his
speeches go unnoticed. And I am sorry to say that. People just do not
care it seems about the Federal Reserve. Maybe it is because it is a
subject that is not very interesting. It is not pornography. It is not
murder. It is not an issue that deals with the Wild West water,
grazing. It does not deal with issues that we talk about here a lot.
But we do not talk enough about the Federal Reserve and the impact it
has on our lives.
So I acknowledge the work that my friend from North Dakota has done
on this issue. I am sorry that his very lucid statement have received
very little attention.
I was thinking as the Senator from North Dakota was outlining the
secrecy of the Federal Reserve System that maybe what we should do--the
Central Intelligence Agency has received a lot of criticism lately for
not doing a real good job; one reason maybe is that they are not secret
enough in some of the things they do--maybe we should combine them with
the Federal Reserve Board. What the Federal Reserve Board does nobody
knows. Nobody knows what they are doing. It seems that everyone has
some idea what the CIA is doing. Maybe we could combine the two. It
might not be a bad idea.
Mr. President, the Federal Reserve has raised interest rates six
times since February 1994. If someone likes this legislation generally
speaking--that is, we are going to try to stop unfunded mandates--then
they should love this amendment. If the principle of unfunded mandates
being stopped sounds good to Senators, then they should jump with joy
and run over here and cosponsor this legislation because this really
overshadows all other unfunded mandates because these go on all the
time. Not only do they affect government because of the moneys that
governments borrow, but they also affect the private sector
significantly.
There is not a person that is listening to this debate who is not
impacted as a result of higher interest rates. It does not matter if
they are homeless or making a multimillion-dollar transaction on Wall
Street as we speak. Higher interest rates affect everybody in this
country. What we are saying is that the Federal Reserve Board should
provide a report to Congress and to the President about anticipated
costs of changes in interest rates on the public and private sectors so
we are aware each time the Fed raises interest rates of how much more
we pay. We should have a little foundation as to what really we pay.
This amendment requires the Fed to prepare a report. This report will
detail the costs imposed by interest rate changes within 30 days after
the Fed decision to change those rates. The report will include an
analysis of the aggregate costs that interest rate changes would impose
on Federal, State, and local governments. It will provide a cost
analysis of interest rate changes on the private sector borrowing. This
will allow us to see the increases in borrowing costs for consumers,
small business, homeowners and conventional lenders.
I am glad that there has been a rollcall vote called on this matter.
I think it is important to people who are in favor of doing away with
unfunded mandates--because they support the largest unfunded mandate we
have in America today.
Mr. HARKIN. Mr. President, I rise in strong support of the Dorgan
amendment regarding the Federal Reserve. Actions by the Federal
Reserve, most notably the six interest rate increases in the last year,
have a huge effect on our economy. In impact, it is an independent
powerful fourth branch of Government, a branch of Government that has
effectively been able to deflect reasonable examination. The impact of
the Federal Reserve's actions needs to be better understood by the
public and by the Congress. This amendment is a very rational and well
thought out step in that direction.
Many would argue that one of the most significant changes in
Government policy was the passage of the 1993 Reconciliation Act which
among other things reduced the deficit by $500 billion over 5 years,
about one-third of the way we needed to go to get to balance. Dozens of
articles appeared on front pages of newspapers as that controversial
hard fought measure went through the legislative process. The $500
billion sum, was in fact, an amount suggested by Alan Greenspan, the
Chairman of the Federal Reserve. Each component was scrutinized by some
degree. Many parts of the measure involving less than 5 percent of the
whole were bitterly fought over.
In 1994, the Federal Reserve took what might be the second most
significant Government action of the last 2 years. Six times, they
increased the interest costs on everybody from the Federal Government
and local governments, to families with mortgages and credit cards, to
almost every business in the Nation.
While many fought bitterly against the tax increases that were
included in 1993 Reconciliation Act, there was barely a word from most
about the huge tax increase that resulted from the Fed's rate
increases. While the first measure cost a typical family under $20 a
year in higher taxes, the second cost many modest income families with
an adjustable mortgage over a $1,000 in a year, 50 times the impact.
This wave of interest rate increases has been estimated to cost the
Federal Government $107 billion over 5 years. And, the cost to the
private sector is probably a lot higher. That is a huge impact with
minimal public discussion on a governmental decision so significantly
affecting both the Federal Government, local governments, and the
private sector.
This amendment would help us to understand the impact of the Fed's
actions and that would be a significant improvement.
The six increases in interest rates were largely justified by the Fed
on the basis of their fear of rising inflation. In 1994, the CPI
increased by a meager 2.7 percent, exactly last year's rate of
inflation. When more volatile food and fuel
costs were taken out, the rate increased by 2.6 percent, the lowest
level of inflation since 1965. And, Alan Greenspan, the Fed's Chairman
said he believed that the CPI was actually overstating inflation by .5
to 1.5 percent. If he were right about the CPI, and I have my doubts,
Greenspan has pushed a huge burden on our economy when he believes that
inflation has been under 2 percent a year over the past 2 years.
Where is this inflation that the Fed has been expecting?
Now, there are indications put out by the Fed's rumor mill that they
will raise interest rates for a seventh time by another half percent or
more on February 1.
The Fed says it takes a long time for the pain of their interest rate
increases to work their way through the economy and cause the economy
to slow down; that is, to cause enough people to be fired and for
enough unemployed people to stay that way. It may take from 6 to 18
months.
I would like to ask: Is it logical to rush forward with a seventh
increase in interest rates when we have not seen the impact of the
earlier increases? If the Fed Chairman believes inflation has been
running at less than 2 percent, I would think he would want to wait.
I would think the Fed would not want the slope of interest rates to
rise too quickly. Because the higher we climb, the harder it will be
for the economy to have the soft landing that we all want.
Some say that the Fed has an economic model that assumes that
whenever unemployment drops to a certain point, it will put pressure on
employers to provide some wage increases. And those wage increases will
cause inflation. So, under this model, every time employment levels are
good and people are working, the Fed fights to get that favorable
situation reversed.
The Fed seems to work to create a guaranteed minimum level of
unemployment and to minimize any general increase in wages.
I believe the Fed is, to some extent, fighting the last war.
Some have suggested that the tremendous growth in discount stores and
the growing willingness of consumers to use private labels creates a
real difficulty of manufacturers and retailers to raise prices. Some
people see a
new culture developing in many manufacturing areas which place
considerable pressure on suppliers to avoid cost increases and to
develop new lower cost methods of producing goods. To some extent,
gains in computer design are
[[Page S1319]] providing methods to accomplish that goal.
And, as our country is more and more integrated in a world economy,
the ability to raise the price of many U.S. goods and the ability to
seek wage increases not related to greater productivity are declining.
Coming back to the analysis required by this amendment, clearly, this
is important information that the public and policymakers should have
about our economy and the effect of Federal Reserve actions.
Lastly, I wanted to comment on why this amendment should be on this
bill. The Fed's interest rate increases are a mandate, a mandate on
every city, county, and State in the Nation that issues bonds. It is a
mandate on every business in the Nation that has loans based on the
prime rate. It is a mandate on every family with a variable rate
mortgage and many other kinds of loans. As Senator Dorgan said, the
Fed's interest rate hikes are the mother of all mandates.
I commend Senator Dorgan for all of his work in this important area
and urge adoption of his amendment.
Mr. SHELBY. Mr. President, I feel compelled to rise in opposition to
the Senator from North Dakota's amendment--an amendment, which in my
view is misplaced, unwise, and dangerously myopic.
The independent role of the Federal Reserve in setting monetary
policy remains critical to the long-term stability of this country.
Cries for more public input in monetary policy decisionmaking
misapprehend the necessary role of a central bank in our market system
and jeopardize a carefully crafted balance between independence and
public accountability.
Public accountability, in contrast to public input, already exists
under the current structure of the Federal Resource.
The Fed and its activities are already highly scrutinized by both
Houses of Congress pursuant to the Humphrey-Hawkins Act--and I dare say
that Chairman Greenspan spends about as much time on the Hill
testifying before one committee or another than he does at the Federal
Reserve engaging in monetary policy decisionmaking.
This amendment is not about public accountability, Mr. President.
Rather, this amendment is about a trade-off between long-term stability
and short-term gain.
This amendment represents a rough attempt to influence monetary
policy for short-term political purposes.
And yet even if it were successful in its purpose--to try and keep
interest rates artificially low--it would still be ineffective, Mr.
President, because long-term interests rates are not determined by U.S.
monetary policy alone.
The Fed does not make decisions in a vacuum. Long-term bond and
currency values reflect international confidence in the conduct of our
monetary policy, not simply the Fed's pegged Federal funds rate. And a
loose monetary policy, set through a politically influenced
decisionmaking process would send a strong message to the rest of the
world.
It would basically be telling our international neighbors that we are
more concerned with macroeconomic gain than price stability and strong,
long-term economic growth.
Mr. President, soft money means a soft economy. Adopt the view
endorsed by this amendment and we won't have to worry about bolstering
the Mexican economy through billion-dollar subsidies--we can make the
peso look good by encouraging a lack of confidence in United States
monetary policy and the dollar.
This amendment is not only unwise and myopic, it is misplaced.
It would force the Fed to report to Congress and the White House what
costs are imposed on the market every time it raises interest rates.
How do you define what comprises costs on the public and private
sector? Do you net costs and benefits?
Would the proponents of this amendment agree the way many of them did
during the health care debate that the short-term costs are outweighed
by the long-term benefits? It would appear so.
Even if you could quantify such costs--which I nonetheless believe
would be a specious exercise at best--this amendment is an unnecessary
regulatory nightmare.
Congress already has the ability to ask the Fed about the costs of
raising interest rates and it has, both through committee oversight and
by individual Member queries to the Fed.
So what is the purpose of this amendment? To bog the Fed down in more
reporting requirements and politicize its decisionmaking process by
triggering the reporting requirements only when the Fed decides to
increase interest rates.
Mr. President, the amendment also misapprehends its populist appeal.
It seems to me that on November 8 the American people were pretty
clear about a couple of things--one of which is that they can rarely
trust Congress to conduct the responsibilities it already has, like
making fiscal policy.
I'm quite sure that such a healthy skepticism for this body's
abilities would certainly extend to any ideas of Congress extending its
reach further into Fed monetary policymaking.
I bet the American people would be much more interested in seeing the
Congress report on the costs to the public and private sectors every
time it votes to raise taxes.
I like low interest rates, too, Mr. President, but I'm not willing to
sacrifice the long-term health of our economy to obtain them.
Mr. President, this amendment has nothing to do with unfunded Federal
mandates, but instead is strictly about challenging the role of the Fed
in setting monetary policy by making it more politically accountable to
Congress.
Costs imposed by rising interest rates are not unfunded Federal
mandates. As I've stated before, the Fed can only do so much to affect
interest rates, the market will influence the rise or fall in interest
rates no matter what the Fed does.
If anything, this amendment is about imposing new mandates by
requiring the Fed to comply with new and extensive reporting
requirements.
Mr. President, this bill is not the appropriate piece of legislation
for this amendment and I would urge my colleagues to support the
Senator from Idaho's motion to table the Dorgan amendment.
Mr. HOLLINGS addressed the Chair.
The PRESIDING OFFICER. The Senator from South Carolina.
Mr. HOLLINGS. What is the present parliamentary situation? Is there
an amendment to be voted on?
The PRESIDING OFFICER. The amendment by the Senator from North Dakota
is pending.
Mr. HOLLINGS. Are we going to stay on that until 4 o'clock when we
vote? Is that the ruling of the Chair?
Mr. President, while I do have the floor, could I put up an amendment
or how can that be arranged? Will there be no more amendments?
The PRESIDING OFFICER. The Senator may ask consent to set aside the
pending amendment.
Mr. HOLLINGS. I ask unanimous consent that we temporarily set aside
the pending amendment so that I can introduce one.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. HOLLINGS. I thank the distinguished Chair. I thank the
distinguished managers of the bill.
Mr. President, I want to talk about the biggest unfunded mandate of
all, which is not just interest costs on the Federal debt, but the
entire Federal budget. We just heard--and I want to join the leadership
of the distinguished Senator from North Dakota and the distinguished
Senator from Nevada in their concern relative to interest costs. I will
momentarily put into the Record a table that will show my colleagues
exactly where we are.
Prior to that, let me speak to some of the problems facing our
Nation. We are really in crisis, Mr. President, with respect to our
fiscal situation and also in crisis in our cultural situation.
We all know the litany: There are some 40 million Americans in
poverty. Some 10 million are homeless, sleeping in the streets; another
12 million children are hungry. The cities are a cesspool of crime and
violence; the land is drug infested; the schools have turned into
shooting galleries. Even more alarming, we now find that of those
between the age of 17 and 24, 73 percent cannot find a job out of
poverty. In sum, we are dividing into a two-tiered society, the haves
and the have-nots.
[[Page S1320]] The middle class that everybody seems to want to
address is disappearing. Rather than offering up a State of the Union,
rather than coming up with contracts premised on the dismantlement of
Government, what we need is a plan to start the Government back up
again, for it is only the Federal Government that can solve these
problems. With all 50 States joining hands and pulling together, we can
work our way out of this dilemma.
Mr. President, our security is like resting upon a three-legged
stool. We have the first leg, the values we have as a country, and
those are very strong. We readily sacrificed lives to feed the hungry
in Somalia; we sacrificed lives again trying to promote democracy in
Haiti; and we are now willing to send earthquake relief aid to Japan.
We, as an American country--not as a middle class or lower class or
underclass or rich class--willingly sacrifice and give assistance where
it is needed.
Similarly, the second leg of our security rests on the leg of
military power, and the strength of that is unquestioned. Finally, the
third leg is that of our economic security, and that leg is fractured,
in disrepair, and about to break because of the very litany that we
have all enunciated on the floor.
We act as if it is the best of times, and all we need to do is give
to the various interest groups their wants. For those in California, we
will now finally have a program on immigration after we just passed a
multibillion-dollar bill on that subject. It makes a difference. But we
have never even given the additional border patrols and everything else
a chance to work, including the new offices that were set up. The
thrust of such pollster-driven policies would be to say, ``We have not
done anything,'' and ``Let us start doing something there,'' because
California is important in the Presidential race.
Of course meanwhile, both sides are trying their dead-level best to
flatter the middle class with gifts such as tax cuts. Mr. President, we
do not have anything to give. The tenor and tempo of the moment should
rather be that of John F. Kennedy back some 30 years ago when he said,
``My program is not a set of promises of what I intend to give the
American people, but rather a set of challenges of what I intend to ask
of the American people.''
Rather than facing challenges and bringing reality, we are off on a
toot, chasing around in a veritable contest, a foot race, if you
please, trying to dismantle the Government and saying that the
Government is the enemy. The truth of the matter is that the Government
is a friend. We have valid programs working which need to be expanded
upon--women, infants, and children feeding, 50 percent receive funding
and 50 percent go wanting. But for every dollar I spend on women,
infants, and children feeding, I save $3. For if I do not spend that
money on nutritional supplements, I have, by account, an increase low
birthweight infants. The average stay in an incubator for the low
birthweight infants is 30 days, at $1,000 a day, or $30,000.
Getting to the needs of the hour, we need to embellish the WIC
Program and the Head Start Program. We can furnish the studies that
show for every $1 that we invest in Head Start--not to the cities or to
the States or to get it back to the people or to dismantle it and all
the other gobbledygook they are giving us--Head Start saves $4.50 for
every $1 we spend. We ought to extend that to the other 40 percent of
Americans that are not participating.
With respect to funding for the disadvantaged, half of those eligible
are not receiving benefits, but for every $1 we spend there, $6.25 is
saved. Biomedical research, which is a distressing thing to me, we have
cut back under President Clinton's administration on top of the cuts
that we have had under Reagan-Bush. But for every $1 we spend in
biomedical research out at NIH, we save $13.50.
Indeed, the Federal Government has a lot of good roles to perform.
Welfare reform--you are getting another unfunded mandate, Mr. Governor,
I can tell you now. Some will get welfare and some will not. Those
recipients in the ``have-not'' States with the bigger burden will start
moving to those ``have'' States. In fact, that is what brought about
the Federal program.
I can tell you, once they get to welfare reform and try to set up
those jobs to make people work, no money is going to be saved. It is
going to cost more. Welfare reform is going to cost more. Name the odds
and I will take all bets.
Similarly with health reform. Yes, we can slow down the growth of
rising health costs, but the savings that we achieve through reductions
in all of the entitlements will leave us far short of our goal. My
point is while we may save some, we will not save enough. So, it is
important that we come and start looking, if you please, at what we
really need in this land of ours. And I will get into that on another
occasion, because I want to address the problem of this unfunded
mandate, the Federal budget.
Mr. President, we need a Marshall plan for America. If we are going
to have a capital gains tax cut, we need to have it for inner-city
investment to industry, not just for the rich just to write off. In
addition, we need to promote savings. We need targeted IRA's and
incentives to promote investment in research and development investment
here in the United States. With respect to technology, we need the
advanced technology program, which is subject to peer review by the
National Academy of Engineering and devoid of any political pork.
Regrettably, you see some shouting in the contract that these are
pork barrel programs. We have to get into competition with a
competitive trade and industrial policy. We can go down the list of the
needs, but we do not have any money.
Looking at what is available, I find myself much like the famous
character in ``Alice In Wonderland,'' where to stay where I am, I have
to run as fast I can; to get ahead, I have to run even faster.
Let me turn momentarily to the interest costs on the public debt. I
can tell you, before Chairman Greenspan raised interest rates, the CBO
estimated $311 billion for the 1995 gross interest costs on the public
debt. Now, comes January, it has jumped some 28 billion bucks to $339
billion and is projected to rise to $408 billion by 2002.
So what I have tried to do in this particular exercise is to bring
into focus the magnitude of our current fiscal situation. I have been
in a drill now all this month with my staff and the best of minds. I
have summarized it on one sheet of paper. And I will ask my staff to
distribute this sheet to our friends on the floor and any others who
are interested. Yes, statistics are boring, but it is a reality.
We start, Mr. President, with reality check No. 1, that it will
require approximately $1.2 trillion in spending cuts to execute item
No. 1 of the Contract With America; namely, to balance that budget.
Now, balancing the budget is not a new thing. I have tried dutifully
as a Member--and Senator Domenici and I are the only remaining Members
since the initiation over 20 years now of the Budget Committee--and as
a former chairman, I have conscientiously tried freezes. I have tried
Gramm-Rudman-Hollings--which, incidentally, my colleagues, Mr. Gramm
and Mr. Rudman, joined in abolishing in 1990 when we went from fixed to
floating targets. We had the discipline. We needed to maintain that
discipline, but in October of 1990, I guess it was--we will find out
the exact date--at around 20 minutes to 1:00 in the morning, I will
never forget making the point of order; the point of order was appealed
and Gramm-Rudman-Hollings, for all intents and purposes, was abolished.
Do not say, ``It did not work.'' That is what I hear is said in these
meetings and seminars, that Gramm-Rudman-Hollings did not work. The
fact of the matter is that it was not the law that failed, but rather a
bipartisan failure on the part of Congress to meet the targets.
The problem continues to worsen--and I emphasize, Mr. President,
``worsen''--because if we had had the freezes that my distinguished
friend on the other side of the aisle, the majority leader, Howard
Baker of Tennessee, and I once offered, we would have a balanced budget
this very minute.
After failing with freezes, I then came with taxes. Now, I have been
in public service 40 years and I am not some loon who is off trying to
get a headline. I do not need it. Instead, I try to make headway.
[[Page S1321]] And I know that taxes are unpopular. Because of
pollster politics in this land, every politician is told, whether
Republican or Democrat, conservative or liberal, that Americans are all
against taxes. Uniquely and ironically, we are in such a position that
the only way we can stop increasing daily interest taxes by $1 billion
is to raise taxes.
Now think about that statement. I said to stop increasing daily
interest taxes of $1 billion. Or save a few Sundays, we pushing gross
interest up to $339 billion. That interest cost to me is the worst tax
of all, because it cannot be avoided. That is the first thing that
comes off the top. So, we have spending on automatic pilot and tax
increases on automatic pilot. That is why I say our country is in
crisis.
The truth of the matter is that we have not paid for the Congress in
years. We have not paid for the FBI in years. We have not paid for the
DEA in years. We have not paid for the Departments of Commerce, the
Interior, Agriculture, and other Departments in years. Why? Because if
we look to see domestic discretionary--not defense--domestic
discretionary spending right this minute is $253 billion. Defense
spending is $270 billion; international affairs is $21 billion for a
grand total in discretionary spending of $544 billion.
Get that figure in your mind and turn to the size of the deficit. The
true deficit figure for 1995 is $283 billion and not the $176 billion
that the press continues to report. They do not want to speak the truth
in budgeting. I offered the amendment along with my late friend,
Senator Heinz, to prevent us from using the Social Security trust fund
to mask the size of the deficit. They do not adhere to it. OMB and CBO
give two figures, one using the trust funds, one not using them.
As an aside, I might mention that Social Security is paying its way.
It is not in the red. In fact, by the end of the century we will owe
Social Security $1 trillion. One trillion dollars we have borrowed. We
are using these little IOU slips in the trust fund drawer to mask the
true size of the deficit.
Now we will jump back to the $253 billion we spend on domestic
discretionary programs. The courts, the Congress, the President, the
FBI, the judges--all of these Departments of Government add up to $253
billion. Similarly, at the present time we have a deficit of $283
billion. Thus, we could eliminate all of Government and we would still
be facing a deficit.
When we come around with the Contract with America and say we will
balance the budget with spending cuts, eliminate the Government, so to
speak, we will still have a deficit. This is the unpardonable crisis we
have worked our way into. I have continued to search for ideas. I
appeared with the best of experts, Mr. Charles Walker, former
Undersecretary of the Treasury, Dr. Cnossen of the Netherlands, who
helped write the Japanese value-added tax, the United Kingdom's value-
added tax.
I have been to countries like Argentina that are operating on a
balanced budget. I have been to Chile where they are operating on a
balanced budget, and I am lecturing them? I am embarrassed. I have the
biggest foreign debt. I have gross interest, the biggest domestic
account that we can possibly think of, and we act like all we are here
to do is make the headlines with contracts, identify with the family,
identify with the middle class, identify with California on
immigration, and get past, if you please, the election.
I have tried to work on those entitlements. I wish Senators could
have been at some of the meetings that I had with Claude Pepper. I
learned that senior citizens were willing to sacrifice as long as
everyone shared in shouldering the load. At a meeting with Claude and
some senior citizens, I asked everyone to raise their hands if they
were willing to just hold the line, freeze Social Security not cut it,
but not get any increase so long as no one else got any increase. I
would pick up half of Claude Pepper's audience. They would raise their
hands and some would stand. After that, the distinguished Congressman
from Florida and chairman of that particular committee quit inviting me
to the meetings.
I have stood the fire on COLA freezes. Someone on the other side
might try and say, ``Oh, you did not vote that way in September 1985,
when they wheeled in Pete Wilson for the Republican freeze of Social
Security.'' That's true, I did not because it did not apply to every
other particular program.
In addition, I have tried to reduce other entitlements. Along with
the Senator from Kansas, now majority leader, I attempted to reduce the
waste and inefficiencies in the Food Stamp Program, but the promised
savings never materialized. Instead, we saw more and more children
qualify for the program. I can tell Members here and now what causes
latchkey children. It is that the average family's income has steadily
declined. So both parents have to get out and they both have to hustle.
That is the case in my family and perhaps in your families and
everybody's family. That is the fact of life.
Some of them have to get out in order to support their children. The
child is left at home.
And there it is. If you think you are going to save on aid for
dependent children, look at what the distinguished majority leader said
in the morning paper that I read: Babies having babies we deplore, but
we are not cutting the children off. I agree with him. It is a child
problem, it is not a political problem with the next election to
identify: ``I got hold of those riding around in Cadillacs and buying
T-bone steaks with their food stamps''. I have heard that ad nauseam
for years and have written a book on hunger. We will talk on that at
length on a different occasion.
My point in this whole particular amendment is that we are really in
a crisis condition relative to spending on automatic pilot, and the
need of the hour is not a delay for a constitutional amendment.
The time for the discipline has passed, so to speak. What we need to
do is do it. We all are like a bunch of players that have run up into
the grandstand hollering, ``We want a touchdown; we want a touchdown;
we want a touchdown.'' Darn it, get down on the field and score a
touchdown. We are the players.
I remember when Ronald Reagan came to town. He said he was going to
balance the budget in 1 year. When he got here, after he had gotten
elected on that pledge, he said, ``Oops, this thing is way worse. It's
going to take me 2 years.''
We went back, thinking he was serious, in the Budget Committee and
said, ``All right, we'll make it 3 years so it will be realistic and we
can get it done.''
That was 1981, and by 1985, we had not done anything. In fact, we had
this growth, growth, growth. We were supposed to grow out of our
problems and give the people back their money so they can spend it
better than Washington. We have been through that.
But the fact of the matter is, by 1985 in Gramm-Rudman-Hollings, we
had to make a 5-year plan. Now they are jumping it to 7 years. If you
agree to that, I can tell you the next Congress is going to come for 10
years. Up, up, and away, just so long as you do not face the music.
I am saying now is the hour to face that music. We cannot do all we
want done. But we can make a good start of providing a Marshall plan to
rebuild the economy of this land so that we can go back to providing
jobs for Americans.
The reality is that you cannot save enough on entitlements. What
about defense? There are those who want to increase it inordinately.
There are those who want to decrease it inordinately. I think the best
judgment at this hour is to hold the line on defense and let the
Defense Department really stabilize under the Bottom-Up Review.
With respect to domestic discretionary spending reductions, they have
to come from freezes and cuts. But once you go over the list, you find
out that there are not enough savings to balance the budget.
Mr. President, I ask unanimous consent this cover sheet, with the
list of the cuts, be printed in the Record.
There being no objection, the list was ordered to be printed in the
Record, as follows:
------------------------------------------------------------------------
Non-Defense discretionary spending cuts 1996 1997
------------------------------------------------------------------------
Space station........................................... 2.1 2.1
Eliminate CDBG.......................................... 2.0 2.0
Eliminate low-income home energy assistance............. 1.4 1.5
Eliminate arts funding.................................. 1.0 1.0
Eliminate funding for campus based aid.................. 1.4 1.4
[[Page S1322]]
------------------------------------------------------------------------
Non-Defense discretionary spending cuts 1996 1997
------------------------------------------------------------------------
Eliminate funding for impact aid........................ 1.0 1.0
Reduce law enforcement funding to control drugs......... 1.5 1.8
Eliminate Federal wastewater grants..................... 0.8 1.6
Eliminate SBA loans..................................... 0.21 0.282
Reduce Federal aid for mass transit..................... 0.5 1.0
Eliminate EDA........................................... 0.02 0.1
Reduce Federal rent subsidies........................... 0.1 0.2
Reduce overhead for university research................. 0.2 0.3
Repeal Davis-Bacon...................................... 0.2 0.5
Reduce State Department funding and end miscellaneous
activities............................................. 0.1 0.2
End Public Law 480 titles I and III sales............... 0.4 0.6
Eliminate overseas broadcasting......................... 0.458 0.570
Eliminate the bureau of mines........................... 0.1 0.2
Eliminate expansion of rural housing assistance......... 0.1 0.2
Eliminate ATP........................................... 0.1 0.2
Eliminate airport grant in aids......................... 0.3 1.0
Eliminate Federal highway demonstration projects........ 0.1 0.3
Eliminate Amtrak subsidies.............................. 0.4 0.4
Eliminate RDA loan guarantees........................... 0.0 0.1
Eliminate Appalachian Regional Commission............... 0.0 0.1
Eliminate Untargeted funds for math and science......... 0.1 0.2
Cut Federal salaries by 4 percent....................... 4.0 4.0
Charge Federal employees commercial rates for parking... 0.1 0.1
Reduce agricultural research extension activities....... 0.2 0.2
Cancel advanced solid rocket motor...................... 0.3 0.4
Eliminate legal services................................ 0.4 0.4
Reduce Federal travel by 30 percent..................... 0.4 0.4
Reduce energy funding for Energy Technology Development. 0.2 0.5
Reduce Superfund cleanup costs.......................... 0.2 0.4
Reduce REA subsidies.................................... 0.1 0.1
Eliminate postal subsidies for non-profits.............. 0.1 0.1
Reduce NIH funding...................................... 0.5 1.1
Eliminate Federal Crop Insurance Program................ 0.3 0.3
Reduce Justice State-local assistance grants............ 0.1 0.2
Reduce export-import direct loans....................... 0.1 0.2
Eliminate library programs.............................. 0.1 0.1
Modify Service Contract Act............................. 0.2 0.2
Eliminate HUD special purpose grants.................... 0.2 0.3
Reduce housing programs................................. 0.4 1.0
Eliminate Community Investment Program.................. 0.1 0.4
Reduce Strategic Petroleum Program...................... 0.1 0.1
Eliminate Senior Community Service Program.............. 0.1 0.4
Reduce USDA spending for export marketing............... 0.02 0.02
Reduce maternal and child health grants................. 0.2 0.4
Close Veterans hospitals................................ 0.1 0.2
Reduce number of political employees.................... 0.1 0.1
Reduce management costs for VA health care.............. 0.2 0.4
Reduce PMA subsidy...................................... 0.0 1.2
Reduce below cost timber sales.......................... 0.0 0.1
Reduce the legislative branch 15 percent................ 0.3 0.3
Eliminate small business development centers............ 0.056 0.074
Eliminate minority assistance score, small business
institute and other technical assistance programs,
women's business assistance, international trade
assistance, empowerment zones.......................... 0.033 0.046
Eliminate new State Department construction projects.... 0.010 0.023
Eliminate Int'l Boundaries and Water Commission......... 0.013 0.02
Eliminate Asia Foundation............................... 0.013 0.015
Eliminate International Fisheries Commission............ 0.015 0.015
Eliminate Arms Control Disarmament Agency............... 0.041 0.054
Eliminate NED........................................... 0.014 0.034
Eliminate Fulbright and other international exchanges... 0.119 0.207
Eliminate North-South center............................ 0.002 0.004
Eliminate U.S. contribution to WHO, OAS, and other
international organizations including the United
Nations................................................ 0.873 0.873
Eliminate participation in U.N, peacekeeping............ 0.533 0.533
Eliminate Byrne Grant................................... 0.112 0.306
Eliminate Community Policing Program.................... 0.286 0.780
Moratorium on new Federal prison construction........... 0.028 0.140
Reduce Coast Guard 10 percent........................... 0.208 0.260
Eliminate manufacturing extension program............... 0.03 0.06
Eliminate Coastal zone management....................... 0.03 0.06
Eliminate National Marine sanctuaries................... 0.007 0.012
Eliminate climate and global change research............ 0.047 0.078
Eliminate national sea grant............................ 0.032 0.054
Eliminate State weather modification grant.............. 0.002 0.003
Cut weather service operations 10 percent............... 0.031 0.051
Eliminate regional climate centers...................... 0.002 0.003
Eliminate minority business development agency.......... 0.022 0.044
Eliminate public telecommunications facilities program
grant.................................................. 0.003 0.016
Eliminate children's educational television............. 0.0 0.002
Eliminate national information infrastructure grant..... 0.001 0.032
Cut Pell grants 20 percent.............................. 0.250 1.24
Eliminate education research............................ 0.042 0.283
Cut Head Start 50 percent............................... 0.840 1.8
Eliminate meals and services for the elderly............ 0.335 0.473
Eliminate title II social service block grant........... 2.7 2.8
Eliminate community services block grant................ 0.317 0.470
Eliminate rehabilitation services....................... 1.85 2.30
Eliminate vocational education.......................... 0.176 1.2
Reduce chapter 1 20 percent............................. 0.173 1.16
Reduce special education 20 percent..................... 0.072 0.480
Eliminate bilingual education........................... 0.029 0.196
Eliminate JTPA.......................................... 0.250 4.5
Eliminate child welfare services........................ 0.240 0.289
Eliminate CDC Breast Cancer Program..................... 0.048 0.089
Eliminate CDC AIDS Control Program...................... 0.283 0.525
Eliminate Ryan White AIDS Program....................... 0.228 0.468
Eliminate maternal and child health..................... 0.246 0.506
Eliminate Family Planning Program....................... 0.069 0.143
Eliminate CDC Immunization Program...................... 0.168 0.345
Eliminate Tuberculosis Program.......................... 0.042 0.087
Eliminate Agricultural Research Service................. 0.546 0.656
Reduce Agricultural Research Service.................... 1.579 1.735
Reduce WIC 50 percent................................... 1.579 1.735
Eliminate TEFAP:
Administrative...................................... 0.024 0.040
Commodities......................................... 0.025 0.025
Reduce cooperative State research service 20 percent.... 0.044 0.070
Reduce animal plant health inspection service 10 percent 0.036 0.044
Reduce food safety inspection service 10 percent........ 0.047 0.052
---------------
Total:.............................................. 36.942 58.407
------------------------------------------------------------------------
Mr. HOLLINGS. I thank the distinguished Chair.
I been trying to put us on a reasonable path to get our deficit down
to zero. But to do that through spending reductions alone requires $1.2
billion in cuts over 7 years and $37 billion in the first year.
Thirty-seven billion dollars in domestic discretionary looks
attainable until you try it on. That is why I have listed them, doing
my dead-level best to get up to the $37 billion. I have listed the
space station, eliminate it; the community development block grants;
the lower-income home energy assistance; the arts funding, the funding
for campus-based aid; the funding for impact aid; the funding to
control drugs; SBA loans should be eliminated; the Federal aid to mass
transit; eliminate the Economic Development Administration; reduce the
Federal rent subsidies; reduce overhead for university research; repeal
Davis-Bacon--I am going down a list of all these things they have been
thinking about.
I am going down a list of all these things they have been speaking
about.
Reduce the State Department funding and end miscellaneous activities,
end P.L. 480 title I and title III sales, eliminate the overseas
broadcasting, the Bureau of Mines, eliminate expansion of the rural
housing assistance, eliminate U.S. Trade and Tourism and Travel
Administration, the advanced technology program, the airport grants in
aid, the Federal highway demonstration programs, eliminate Amtrak
subsidies, eliminate the RDA loan guarantees, the Appalachian Regional
Commission, the untargeted funds for math and science, cut Federal
salaries by 4 percent, charge Federal employees commercial rates for
parking, reduce agriculture research extension activities, cancel the
advanced solid rocket motor, eliminate Legal Services Corporation,
reduce the Federal travel by 30 percent, reduce the energy funding for
energy technology development, reduce the Superfund cleanup costs,
reduce the REA subsidies, eliminate the postal subsidies for
nonprofits, reduce the NIH funding, eliminate the Federal Crop
Insurance Program, reduce the Justice-State local assistance grants,
reduce the export-import direct loans, eliminate library programs,
modify the service contract, eliminate the HUD special purpose grants,
reduce housing programs, eliminate community investment programs,
reduce strategic petroleum program, eliminate the senior community
service program, reduce the U.S. Department of Agriculture spending for
export marketing, reduce maternal and child health grants, close the
veterans hospitals, reduce the number of political employees, reduce
the management costs for the VA health care, reduce the PMA subsidy,
reduce below-cost timber sales, reduce the legislative branch 15
percent, eliminate the small business development centers, eliminate
the minority assistance on SCORE, technical assistance programs for
women's business assistance, international trade assistance and import
zones--all that is minority assistance gone, just like they did the
caucus over across the hall there--eliminate new State Department
construction projects, eliminate the International Boundaries and Water
Commission, eliminate the Asia Foundation, eliminate the International
Fisheries Commission, eliminate the Arms Control Disarmament Agency,
eliminate the National Endowment for Democracy, eliminate Fulbright and
other international exchanges, eliminate the North-South Center,
eliminate the United States contribution to the World Health
Organization, Organization of American States, and the other
international organizations, including the United Nations, eliminate
participation in U.N. peacekeeping, eliminate the Byrne grants,
eliminate community policing programs, a moratorium on new Federal
prison construction, reduce the Coast Guard 10 percent, eliminate
manufacturing extension program, eliminate coastal zone management, the
national marine sanctuaries, the climate and global change research,
the national sea grant program, eliminate the State well and
modification program, cut the Weather Service operations 10 percent,
eliminate the regional climate centers, eliminate the Minority Business
Development Agency, eliminate the public telecommunications facilities
program grant, eliminate children's educational television, eliminate
the national information infrastructure grant, cut Pell grants 20
percent, eliminate education research, cut Head Start 50 percent,
eliminate the meals and services for the elderly, eliminate title II
social service block grant, eliminate community services block grant,
eliminate rehabilitation services, eliminate vocational education,
reduce chapter 1 20 percent, reduce special education 20 percent,
eliminate bilingual education, eliminate JTPA, eliminate child welfare
services, eliminate CDC breast cancer program, eliminate the CDC AIDS
control program, eliminate the Ryan White AIDS program, eliminate
maternal and child health, eliminate family planning program, eliminate
the CDC immunization program, eliminate the tuberculosis program,
eliminate Agriculture Research Service, reduce WIC 50 percent,
eliminate TEFP administrative commodities, reduce cooperative State
research 20 percent, eliminate animal/plant health inspection services
10 percent, reduce food safety inspection service 10 percent, and you
have in outlays for the year 1996, $36.942 billion.
Incidentally, Mr. President, it would be good at this time to include
in the Record a letter the distinguished Senator from New Hampshire
dated January 11, 1995, to his colleagues saying, ``As part of this
process * * * to head up an effort to find dramatic spending reductions
in entitlements,'' and list of
[[Page S1323]] reductions in entitlements be included in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
U.S. Senate,
Washington, DC, January 11, 1995.
Dear Colleague: As you know, we are aggressively proceeding
to address the development of next year's budget under the
leadership of Senator Dole and Senator Domenici. As part of
this process, I have been asked to head up an effort to find
dramatic spending reductions in entitlements. I would
appreciate your help in this effort.
We are going to attempt to identify entitlement savings in
the range of hundreds of billions of dollars over the next
five years. To accomplish this, we are using the following
documents:
(1) Last year's Republican budget which entailed nearly
$215 billion in entitlement savings (Appendix A);
(2) An allocation formula of additional savings based on
the approximate percent that various spending categories
represent of total entitlement spending (Appendix B) and;
(3) A working draft of potential areas for savings
(Appendix C).
Social Security is not to be included in any of this
activity.
Using the enclosed documents and any other materials or
ideas that you may have, I would appreciate it if you or your
staff would get back to us no later than January 17th as to
any specific suggestions or proposals that you would like to
make.
Thank you for your attention to this issue.
Sincerely,
Judd Gregg.
____
Chapter 1: Proposals To Reform the Civil Service Retirement System
i. options to reduce replacement rates from the start of retirement for
CSRS and FERS
A. Modify the salary used to set pensions:
Cost Savings: $510 million over 5 years. (CBO projections
from 1995-1999).
II. options to retain initial replacement rates but reduce benefits
during retirement through cola restrictions for csrs and fers
A. Limit COLAS to one-half percentage point below inflation
for CSRS:
Cost savings: $2.45 billion over 5 years. (CBO projections
from 1995-1999).
B. Defer COLAS until age 62 for all non-disabled employees
who retire before that age for those under CSRS:
Cost savings: $1.210 billion over five years. (CBO
projections from 1995-1999: No savings in 1995).
III. OPTIONS TO INCREASE THE CSRS AND FERS RETIREMENT AGE
A. Raise the retirement age from 55 to 65 prospectively for
all new hires after 1993:
Cost savings: Because of the prospective implementation,
there would be no immediate savings.
B. Raise the age of civilian retirement to 62:
Cost savings: $14 billion over 5 years (1994-1998).
iv. options to raise defined benefit contributions in csrs and fers
A. Increase employee contributions to Retirement Fund in
CSRS from 7 percent to 9 percent over two years:
Cost Savings: $4.180 billion over 5 years. (CBO Projection
from 1995-1999).
v. options regarding csrs and fers survivor benefits
A. Conform the maximum entitlement age for CSRS/FERS child-
survivor benefits to that of Social Security:
Cost savings: $50 million over 4 years. (1994-1997).
B. Base survivor annuity on the retiree's reduced annuity:
Cost savings: $350 million over 4 years. (1994-1997).
vi. options to decrease the employer matching rate for voluntary thrift
savings plan (tsp) contributions
Option 1: Eliminate the 50-cents-per-dollar match for the
fifth percent of salary available under the current thrift
savings plan for all new hires:
Cost savings: $144 million over 5 years.
Option 2: Eliminate the 50-cents-per-dollar match for new
employees:
Cost savings: No saving over 5 years.
Option 3: Limit the Federal match to a federal matching
rate of 50 percent against the first five percent of pay:
Cost savings: $2.34 billion over 5 years. (CBO projections
from 1995-1999).
Option 4: Reduce the Federal matching contributions from
one dollar to 50 cents for contributions above the first one-
percent of pay contributed by employees:
Cost savings: Does not indicate separate cost savings.
Chapter 2: Proposals To Reform the Military Retirement System
i. options to reduce replacement rates from the start of retirement
A. Modify the salary used to set pensions:
Cost savings: $110 million over 5 years. (CBO Projections
from 1995-1999).
ii. options to retain initial replacement rates but reduce benefits
during retirement through cola restrictions
B. Defer COLAs:
Option 1: For those who enlist after 1993, defer the COLA
on their retirement benefits until age 62:
Cost savings: None over 5 years. (1994-1999).
Option 2: Defer COLAs for all future military retirees
until age 62:
Cost savings: $4.45 billion over 5 years. (CBO projections
from 1995-1999: No savings in 1995).
B. Limit COLAs:
1. Limit COLAs to one percentage point below inflation for
all the future military retirees.
Cost savings: $2.77 billion over 5 years. (CBO projections
from 1995-1999).
Chapter 3: Proposals To Reform Medicare
Part 1: Proposals To Reform Medicare Part A, Hospital Insurance (HI)
i. prospective payment system (pps)
A. Eliminate Medicare payments to hospitals for enrollees'
bad debts:
Cost savings: $1.75 billion over 5 years. (CBO Projection
for 1995-1999).
B. Eliminate Medicare's additional payments to sole
community hospitals (SCHs).
Cost savings: $1.33 billion over 5 years. (CBO projection
for 1995-1999).
ii. pps--update factor proposals
Cost savings: $17.76 billion over four years. (HHS
projection for 1997-2000).
A. Update Medicare payments to hospitals for inpatient care
on a calendar-year basis:
Cost savings: $4.6 billion over 4 years. (HHS projection
for 1994-1997).
B. Freeze Medicare's part A payment rates and limits for 1
year:
Cost savings: $8.45 billion over 5 years. (CBO projection
for 1995-1999).
C. Extend OBRA-93 skilled nursing facilities (SNFs)
savings:
Cost savings: $920 million over 5 years. (HHS projection
for 1996-2000).
iii. capital payments
A. Mandated reduction in capital reimbursement payments to
hospitals:
Cost savings: $4 billion over 5 years. (HHS projection
based on $800 million savings annually).
B. Reduce capital payments by the following three changes:
Cost savings: $6.2 billion over 5 years. (HHS projection
for 1996-2000).
iv. indirect medical education
A. Reduce Medicare's payments for the indirect costs of
patient care that are related to hospitals' teaching
programs:
Option 1: Lower teaching adjustments to 6 percent:
Cost savings: $4.79 billion over 5 years. (CBO projection
for 1995-1999).
Option 2: Lower teaching adjustments to 3 percent:
Cost savings: $13.55 billion over 5 years. (CBO projection
for 1995-1999).
Option 3: Lower teaching adjustments to level supported by
HCFA's empirical data, or 5.65 percent:
Cost savings: $5.225 billion over 5 years. (HHS projection
based on annual savings of $1.045 billion).
Option 4: Lower teaching adjustments to 3.2 percent:
Cost savings: $8.71 billion over 5 years. (GAO projection
1992-1996).
B. Replace indirect medical education adjustments with a
transfer support system:
Cost savings: $18.45 billion over 5 years. (HHS projection
for 1996-2000).
Part 2: Proposals to Reform Medicare Part B, Supplemental Medical
Insurance
i. fee schedules--physicians services
A. Relative value units:
1. Payments to medical staffs would be limited.
Cost savings: $2.45 billion over 3 years (HHS projection
for 1998-2000; no savings in 1995-97).
B. Geographic adjustment:
There are no current options that affect the geographic
adjustment.
C. Conversion factor:
1. Reduction in conversion factor for 1994.
Cost savings: $2.85 billion over 6 years. (HHS projection
for 1995-2000).
D. Update factor:
1. Beginning in fiscal year 1996, use the change in real
gross domestic product (GDP) to adjust the volume and
intensity factors of the MVPS calculation.
Cost savings: $5.775 billion over 4 years. (HHS projection
for 1997-2000).
2. Set cumulative growth targets for MVPS.
Cost savings: $5.475 billion over 4 years (HHS projection
from 1997-2000) Note: includes $75 million cost in 1997.
v. means-testing
A. Phase in an increase of the deductible from $696 to
$2000 for hospital stays under Medicare Part A for
individuals with AGIs above $70,000 (couples above $90,000):
Cost savings: $1.6 billion over 5 years. (1995-1999).
vi. disproportionate share hospital adjustments
A. Eliminate the disproportionate share adjustment for
hospitals in Medicare's prospective payment system:
Option 1: Eliminate the DSH payment immediately.
Cost savings: $20.3 billion over 5 years. (CBO projection
for 1995-1999).
Option 1: Phase out the DSH payments over 5 years.
Cost savings: $12.55 billion over 5 years. (CBO projection
for 1995-1999).
[[Page S1324]]
B. Reduce DSH payments:
Cost savings: $17.25 billion over 5 years. (HHS projects an
additional 1.5 percentage points would be added for primary
care services. Projection for 1996-2000).
vii. administrative savings options
A. Do not reimburse Medicare providers for substandard
medical care:
Cost savings: $550 million over 5 years. (HHS projection
based on annual estimated savings of $110 million).
ii. clinical lab services-fee schedules
A. Include laboratory services in outpatient or office
visits in the charges:
Cost savings: $6 billion over 5 years. (HHS projection).
B. Change the way Medicare pays for clinical laboratory
test:
Cost savings: $2.13 billion over 5 years. (HHS projection).
C. Permanently extend the 2 percent annual update of
Medicare reimbursement rates for clinical lab services:
Cost savings: $740 million over 4 years. (OMB projection
for 1994-1997).
iii. outpatient treatment/services
A. Treat hospital admissions as outpatient services when
there is no overnight stay:
Cost savings: $1.05 billion over 5 years. (HHS projection
based on annual savings $210 million).
B. Bring outpatient-services payments in line with
ambulatory service center (ASC) approved insurance:
Cost savings: $645 million over 5 years. (HHS projection).
C. Continue Medicare's transition to prospective rates for
facility costs in hospital outpatient departments:
Cost savings: $340 million over 5 years.
D. Require Medicare payments to equal the blended amount
less any amount the hospital may charge as coinsurance:
Cost savings: $9.75 billion over 7 years. (HHS projection
for 1994-2000).
E. Reasonable cost reimbursements:
1. Increase the 5.8 percent reduction of payments for
hospital outpatient services to 10 percent reduction.
Cost savings: $2.6 billion over 4 years from 1993 estimate.
(OMB estimate as reported in Medicare: FY94 Budget (Updated
December 13, 1993)).
iv. co-insurance for part b
A. Increase the part B coinsurance rate to 25 percent on
all services that are currently subject to a coinsurance rate
of 20 percent:
Cost savings: $16.25 billion over 5 years. (CBO projection
for 1995-1999).
B. Clinical lab services:
1. Collect 20 percent coinsurance on clinical lab services
under Medicare.
Cost savings: $6.18 billion over 5 years. (CBO projection
for 1995-1999).
v. deductible
A. Increase Medicare's deductible from $100 to $150 and
index for inflation:
Cost savings: $9.29 billion over 5 years. (CBO projection
over 1995-1999).
vi. premiums
A. Increase the part B premium to 30 percent of program
costs:
Cost savings: $17.37 billion over 5 years. (CBO projection
for 1995-1999). (Note: Savings is actually over 4 years
because no change in 1995).
vii. means-testing
A. Phase out the premium subsidy for higher income
beneficiaries:
Option 1: Gradually reduce the Medicare part B premium
subsidy for high-income enrollees with AGIs beginning at
$70,000 for individuals ($90,000 for couples). The subsidy
would be phased out completely at AGI of $95,000 for
individuals ($115,000 for couples).
Cost savings: $7.34 billion over 5 years.
Option 2: Phase out part B subsidy through gradual
reduction in subsidy for enrollees earning more than $50,000
($65,000 for couples):
Cost savings: $16.3 billion over 5 years.
Option 3: Raise the part B premium to cover 75 percent of
costs for individuals with incomes exceeding $90,000
($115,000 for couples):
Cost savings: Not Available.
Option 4: Raise the premium for physicians' services under
Medicare to cover 75 percent of costs for individuals with
incomes exceeding $75,000 ($100,000 for couples):
Cost savings: $8 billion over 5 years. (CBO projection for
1996-2000).
Option 5: Raise the part B premium to cover 50 percent of
costs for individuals with incomes exceeding $60,000 and for
couples with incomes exceeding $80,000:
Cost savings: $6.02 billion over 5 years.
Option 6: Income-related premiums would cover 100 percent
of costs for individuals with incomes exceeding $125,000 and
for couples with incomes over $150,000:
Cost savings: $5.375 billion over 5 years. (CBO projection
for 1995-1999).
Option 7: Raise the premium for physicians' services under
Medicare to cover an additional one-third of program costs
for individuals with incomes exceeding $100,000 ($125,000 for
couples):
Cost savings: Not Available.
viii. miscellaneous
A. Charge a fee for supplementary medical insurance (part
B) claims that are not billed electronically:
Cost savings: $550 million over 4 years. (CBO projection
1994-1998).
B. Competitive bids:
1. Require the Secretary of HHS to establish competitive
acquisition areas for the awarding of contracts to furnish
selected items or services, effective January 1, 1995.
Cost savings: $980 million over 6 years. (HHS projection
for 1995-2000).
2. Require the Secretary to reduce lab fee schedule payment
amounts if competitive acquisition did not result in a 10
percent reduction in payments that would otherwise have been
made.
Cost savings: $1.55 billion over 6 years. (HHS projection
for 1995-2000).
ix. extend current law
A. Permanently extend OBRA-90 5.8 percent reduction of
Medicare reimbursement for hospital outpatient department
(OPD) reasonable costs beyond 1995:
Cost savings: $950 million over 4 years. (OMB projection
for 1994-1997).
Part 3: Proposals Affecting Part A and Part B
i. medicare secondary payment (msp)
A. Extend MSP provisions for beneficiaries whose Medicare
eligibility is based on end stage renal disease (ESRD) from
the current law limit of 18 months to the duration of
treatment of the disease:
Cost savings: $3.018 billion over 5 years.
ii. home health services
A. Home health co insurance:
Option 1: Establish 20 percent coinsurance for home health
services under Medicare from beneficiaries with Adjusted
Gross Income (AGI) above 150 percent of the Federal poverty
level. (The 150 percent poverty level in 1992 was $10,094 for
individuals age 65 or over and $12,730 for two-person
families with a head age 65 or older):
Cost savings: $13.675 billion over 5 years.
Option 2: Establish 10 percent coinsurance on home health
services under Medicare from beneficiaries with AGI above 150
percent of the Federal poverty level. (The 150 percent
poverty level in 1992 was $10.094 for individuals age 65 or
over and $12,730 for two-person families with a head age 65
or older):
Cost savings: $7 billion over 5 years. (1994-1998).
Option 3: Establish a 10 percent copayment from those
receiving home health services:
Cost savings: $11 billion over 5 years.
Option 4: Establish a 10 percent copayment for all home
health services, except for those received within 30 days of
discharge from a hospital for inpatient care:
Cost savings: $8.02 billion over 6 years. (HHS projection
for 1995-2000).
Option 5: Collect 20 percent coinsurance on all home health
and skilled nursing facility (SNF) services under Medicare:
Cost savings: $20.45 billion over 5 years. (CBO projection
for 1995-1999).
B. Other home health proposals:
1. Extend OBRA-93 home health saving.
Cost savings: $2.1 billion over 4 years. (HHS projection
for 1997-2000).
2. Establish home health median limit.
Cost savings: $600 million over 4 years. (HHS projection
for 1997-2000).
iii. graduate medical education
A. Reduce Medicare's direct payments for Medical education:
Option 1: Base Medicare direct medical education payments
on a national per resident amount derived from the national
average of salaries paid to residents in 1987, updated
annually by the Consumer Price Index (CPI) for urban areas:
Cost savings: $1.07 billion over 5 years. (CBO projection
for 1995-1999).
Option 2: Base Medicare direct medical education payments
on a national per resident amount derived solely from the
average of salaries paid to residents:
Cost savings: $1.4 billion over 4 years. (OMB projection
for 1994-1997).
Option 3: Reduce teaching and overhead payments for non-
rural, non-primary care residents in their initial residency
period
and eliminate these payments beyond the initial residency,
but continue to pay salaries and fringe benefits:
Cost savings: $1.225 billion over 5 years. (1994-1995).
iv. eligibility age
A. Raise the Medicare entitlement age to 67:
Cost savings: Savings would begin in the year 2000 and
build as the increase is phased in over 26 years. The
potential savings would be approx. $60 billion per year
immediately after the entitlement age reaches 67 in 2027.
This amount is between $4.7 and $14.6 billion per year,
depending on the measure used.
v. means testing
A. Establish an income-tested deductible for the sum of
payments under part A and part B of Medicare:
Cost savings: $55 billion annual savings. The authority of
this option (CATO) estimate that it would reduce the growth
of outlays from medical care by at least one percentage
point.
vi. health maintenance organizations (HMOs)
A. Standardize payments to HMOs:
Cost savings: $1.285 billion over 6 years. (OMB projection
for 1995-2000).
vii. extend provisions of current law
A. Medicare secondary payment (MSP):
Cost savings: $2.680 billion over 2 years (HHS projection
for 1999-2000; no savings in 1995-1998 because the current
system covers up to 1998).
B. Permanently extend the data program to identify Medicare
secondary payment (MSP):
[[Page S1325]] Cost savings: $465 million over 2 years.
(HHS projection; no savings before 1999 because current
system is in effect through 1998).
viii. administrative savings options
A. MSP Overpayments:
Cost savings: Savings from this proposal depend on
administrative action, including the allocation of sufficient
discretionary funding to the HCFA to collect the estimated
overpayments. While the maximum savings would be $961.6
million in the first year, it is unlikely that all of this
sum would be collectable.
B. Increase Medicare oversight funding for the contractors
that do claims processing:
Cost savings (savings in mandatory spending, but costs in
discretionary spending):
Heritage Foundations--$5.4 billion over 5 years.
GAO--stated that CBO does not make estimates of this type
of savings but does not disagree with GAO.
Chapter 4: Proposals To Reform Medicaid
1. Institutionalized care.
A. Nursing facility care (NFC):
1. Mandate state regulation of growth in the number of
nursing home beds.
Cost savings: $625 million over 5 years. (CBO projection
for 1995-1999).
B. Institutions for the mentally retarded:
1. Reduce to legally authorized levels of Medicaid payments
to institutions for the mentally retarded.
Cost savings: $3.415 billion over 5 years. (HHS projection
based on annual savings of $683 million).
miscellaneous
A. Managed care:
1. Require states to phases in managed care programs for
Medicaid patients.
Cost savings: $10 billion over 5 years. (1995-1999).
B. Merge Women Infants and Children (WIC) with Medicaid:
Cost savings: $4.4 billion over 4 years. (1992-1996).
C. Impose higher premiums on Medicaid recipients with
incomes over 100 percent of poverty:
Cost savings: $600 million over 4 years. (1992-1996).
D. Eliminate Medicaid transition benefits for AFDC
recipients:
Cost savings: $750 million over 4 years (1992-1996).
E. Eliminate Federal matching in the Medicaid Program for
the State Medicare buy-in:
Cost savings: $3.6 billion over 6 years. (1992-1996).
Chapter 5: Proposals To Reform Federal Health Care Programs
i. federal employees health benefits
A. End the pay-as-you-go policy for Federal employees
health benefits program and prefund Federal retirees' health
insurance (pay-as-you-earn policy):
Cost savings: $11.6 billion over 5 years. Estimates of
savings could vary greatly, depending on CBO's estimate of
the timing of a Postal rate increase to finance this
proposal. The recorded deficit would not change by adopting
this proposal because the increased agency payments would
simply represent transactions between accounts within the
budget. But the option's coverage of government enterprises,
primarily the Postal Service, would reduce the Federal budget
deficit in the near term. The option would increase agencies'
current costs, but the agencies could offset these increases
by absorbing the costs through program reductions, or by
increasing the postage and utility rates and thus decrease
the budget deficit. Almost all of the savings would come from
the Postal Service because it is highly labor intensive. Rate
increases could not be effective before late 1996 or early
1997.
ii. health care block grants
A. Reduce funding by 50 percent for the maternal child
health (MCH) block grant and the preventive health services
block grant:
Cost savings: $1.7 billion over 5 years. (1992-1996).
Chapter 9: Proposals To Reform Means-tested Programs
Part 1: Proposals To Reform Supplemental Security Income (SSI)
i. programmatic reform
A. Reduce the $20 exclusion from income in SSI:
Cost savings: $1 billion over 5 years.
B. Replace cash benefits with medical vouchers for SSI
benefits to disabled children:
Cost savings: Not Available.
C. Review status of SSI child disability recipients upon
eighteenth birthday:
Cost savings: Not Available.
ii. administrative proposals that require no change in law
A. Overpayments and debts:
1. Report the admission of SSI recipients to nursing homes
in a timely fashion in order to stop overpayment of benefits.
Cost savings: $110 million over 5 years.
2. Use income tax offsets to recover SSI overpayments.
Cost savings: $82.5 million over 5 years.
3. Improve recovery SSI overpayments by offsetting
reductions in Social Security payments.
Cost savings through legislation: $120 million over 5
years.
Cost savings without legislation: $46.5 million over 5
years.
Part 2: Proposals To Reform Welfare
i. non-citizens/aliens
A. Restrict eligibility for recipients of welfare
assistance:
Option 1: Rescind the PRUCOL standard for AFDC, SSI, and
nonemergency Medicaid and replace with a uniform standard for
programs with a restricted list of eligible recipients.
Cost savings: Not Available.
Option 2: Deny all aliens, except refugees and elderly
permanent residents, from eligibility for 61 programs, not
including emergency Medicaid:
Cost savings: Not Available.
Option 3: Deny all aliens, with limited exception, from
eligibility for 58 programs, not including emergency
Medicaid:
Cost savings: Not Available.
ii. families and children
A. Cap the AFDC-emergency program:
Cost savings: $1.6 billion over 5 years.
B. Reduce benefits to AFDC families who also receive public
housing benefits:
Cost savings: $3 billion over 5 years.
C. Eliminate the $50 child support payment to AFDC
families:
Cost savings: $630 million over 5 years.
D. Decrease Head Start funding by 50 percent:
Cost savings: Not Available.
E. Limit Federal participation in States' costs for
administering the Foster Care Program:
Option 1: This option would limit annual increases in
payments to each state for administrative costs to 10 percent
a year:
Cost savings: $150 million over five years (CBO Cost
projections).
Option 2: This option would limit annual increases in
payments to each state in the four following ways:
Cost savings: $1.793 billion over 5 years.
F. Require States to develop criteria and implement
procedures for assuring that foster care agencies refer
appropriate cases to State child support agencies:
Cost savings: $55 million over 5 years.
Part 3: Proposals To Reform the Food Stamp and Child Nutrition Programs
i. administrative proposals
A. Merge AFDC, food stamps, public housing assistance, the
earned income tax credit (EITC), and other welfare programs
into a cash assistance program requiring recipients without
children to work for assistance:
Cost savings: $10 billion over 5 years.
ii. changes in federal reimbursement procedures
A. Change Federal administrative-cost reimbursements in
welfare programs:
1. Reduce the reimbursement rate for administrative costs
in AFDC, Medicaid, and Food Stamps to 45 percent.
Cost savings: $5.7 billion over 5 years.
2. Consolidate the administrative costs of AFDC, Medicaid,
and Food Stamps into a single system, requiring states to pay
at least half of all administrative costs and placing a cap
on total reimbursable expenditures.
Cost savings: $6.3 billion over 5 years.
3. Require states to reimburse the Federal government for
all food stamps overpayment errors caused by state
administrators.
Cost savings: $5.6 billion over 5 years.
4. Deny Federal matching of administrative costs for
expenses related to states appealing quality control
sanctions in the Food Stamp, AFDC, and Medicaid programs.
Cost savings: Not Available.
III. PROGRAMMATIC REFORM
A. Eliminate food stamps, public housing, and other welfare
benefits for all able-bodied adults:
Cost savings: $6 billion over 5 years.
B. Require all employable food stamp recipients to engage
in workfare or job search:
Cost savings: $600 million over 5 years.
C. Food Stamp Benefits:
1. Eliminate small food stamp benefits.
Cost savings: $300 million over 5 years.
2. Limit child nutrition program subsidies.
Option 1: Increase targeting of school lunch and child and
adult care food program on low-income persons by eliminating
subsidies for children from families with relatively high
incomes:
Cost savings: $3.07 million over 5 years.
Option 2: Restrict child nutrition and school lunch
subsidies to families below 185 percent of the poverty
threshold:
Cost savings: $5.7 billion over 5 years.
Option 3: End all child nutrition program subsidies for
children with family income above poverty:
Cost savings: $1 billion over 5 years.
D. Count certain non-cash benefits in determining housing
and food stamp assistance:
Cost savings: $6.15 billion over 5 years.
Part 4: Proposals To Reform the Unemployment Compensation Program
I. Unemployment Compensation (UC)
A. Deny UC benefits to military personnel who leave
voluntarily:
Cost savings: $1.4 billion savings over 5 years (1994-
1998).
B. End unemployment compensation benefits for individuals
with taxable income execeeding $120,000 a year:
Cost savings: $361 million over 5 years (1994-1998).
C. Substantially reduce unemployment benefits by delaying
benefits for 1 month and reducing the benefit by 5 percent
per week for 20 weeks:
Cost savings: $5.0 billion savings over 5 years (1994-
1998).
[[Page S1326]] D. Require a two-week waiting period before
unemployment compensation benefits begin:
Cost savings: $4.6 billion savings over 5 years (1993-
1997).
II. Trade Adjustment Assistance
A. Eliminate trade adjustment assistance, including
training and cash benefits:
Cost savings: $990 million over 5 years (1995-1999).
B. Eliminate trade adjustment assistance cash benefits:
Cost savings: $660 million over 5 years (1995-1999).
C. Congressional proposals:
1. Reemployment Act of 1994.
Cost savings: Not available.
2. Job Training Consolidation Act of 1994 (Sen. Kassebaum).
Cost savings: Not available.
iii. privatization of unemployment benefits
Cost savings: Not available.
Part 5: Proposals to Reform Veterans' Programs
i. General benefit payments
A. Eliminate subsidy for administrative costs of life
insurance programs:
Cost savings: $113 million over 4 years.
B. Restore GI Bill Education Program funding ratio to 9:1:
Cost savings: $339 million over 4 years.
ii. facilities
A. Close or convert inefficient or underused VA facilities:
Cost savings: $1.2 billion over 5 years.
iii. health care
A. Adopt a prospective payment system for veterans health
care (Similar to the Medicare system):
Cost savings: $2.25 billion over 5 years.
iv. disability payments
A. End VA disability compensation for non-service-related
injuries and illnesses:
Cost savings: $950 million over 5 years.
B. Eliminate disability payments to veterans with diseases
presumed not to be related to military service:
Cost savings: $616 million over five years.
Chapter 10: Proposals To Reform the Pension Benefit Guaranty
Corporation
i. eliminate the variable rate premium cap by 1997 and raising the
variable rate premium from $9 to $18 for * * *
* * * * *
3. Extend authority to recover costs from health insurers
of veterans for non-service-related conditions.
* * * * *
C. Restrict eligibility for disability compensation
benefits:
Option 1: End payments to veterans with low-rated
disabilities.
Cost savings: $3.25 billion over 5 years.
Option 2: Phase-out payments to veterans with non-service
related or low-rated disabilities.
Cost savings: $2.6 billion in 2000.
v. loans
A. Loan fees:
1. Raise the loan fee for housing loans guaranteed by the
VA.
Cost savings: $1.4 billion over five years.
B. Require down payment and fee for multiple use of loan
guaranty:
Cost savings: $68 million over four years.
C. Permanently extend resale loss provision:
Cost savings: $80 million over four years.
vi. extend provisions of current law
A. Eliminate all ``sunset'' dates on certain provisions for
veterans:
1. Permanently extend income verification through IRS.
Cost savings: $25 million in 1999.
2. Permanently extend pension limit to veterans receiving
Medicaid care.
Cost savings: $190 million in 1999.
Chapter 11: Proposals to Reform Farm Programs
i. conservation
A. End the Conservation Reserve Program:
Cost savings: $9.3 billion over 5 years.
(While the program costs about $1.8 billion per year it is
estimated that the program saves about $1 billion in Federal
expenditures in other farm programs. The $9.3 billion
estimate probably does not account for this. Thus, the actual
savings could be only $800 million per year, or $4 billion
over 5 years.)
ii. farm subsidies
A. Crop subsidies
1. Phase out agricultural crop subsidies over 5 years at a
rate of 20 percent each year.
Cost savings: $6.5 billion over 4 years.
2. Lower target prices subsidized crops.
Option 1: Reduce prices by 3 percent annually starting in
1995.
Cost savings: $11.2 billion over 5 years.
Option 2: Reduce prices by 1.5 percent in 1995 and 1996,
and 3 percent for 4 years thereafter.
Cost savings: $4.5 billion over 5 years.
3. End Federal subsidies for rice and cotton.
Cost savings: $6.8 billion over 5 years.
4. Eliminate the 0/85 (formerly 0/92) and 50/85 (formerly
50/92) programs for participants in USDA commodity programs,
which pay farmers to leave land idle.
Cost savings: $1.34 billion over 5 years.
5. Reduce the CCC outlays by lowering the number of acres
eligible for deficiency payments from 85 percent to 75
percent of base acreage.
Cost savings: $3.94 billion over 5 years.
6. Increase assessments on ``non-program'' federally-
subsidized crops starting in 1996.
Cost savings: $900 million over 4 years.
7. Require specific ``Endings-Stock-To-Use'' ratios for
setting acreage reduction programs for feed grains.
Cost savings: $600 million over 5 years.
B. Livestock subsidies:
1. Dairy subsidies and supports.
a. End all Federal dairy subsidies.
Cost savings: $1 billion over 4 years.
b. Reduce costs for the dairy price support program by
increasing the assessment on producers.
Cost savings: $1.2 billion over 5 years.
c. Reform milk marketing orders to reduce milk price
support outlays.
Cost savings: $1.05 billion over 5 years.
2. Eliminate Federal support for honey.
Cost savings: $32 million over 4 years (assuming
restrictive appropriations language does not continue in the
future).
C. Means testing of subsidies:
1. Restrict eligibility for benefits from price support
programs and reduce the payment limitation.
Cost savings: $2.73 billion over 5 years:
Limit farm price support payments to $50,000/person: $670
million over 5 years.
Limit farm price support payments to $40,000/person: $1.28
billion over 5 years.
Disqualify people whose Adjusted Gross Income exceeds
$100,000: $300 million over 5 years.
Disqualify people whose gross revenue from commodity sales
exceeds $500,000: $670 million over 5 years.
2. End Federal farm subsidies for individuals with annual
net taxable income of more than $120,000 and corporations
with annual net taxable income of more than $5 million.
Cost savings: $1.04 billion over 5 years.
3. Target CCC farm subsidy payments to farmers with off-
farm incomes below $100,000.
Cost savings: $470 million over 5 years (1994-1997).
D. Cash repayments of USDA commodity loans:
1. Require cash repayment of USDA commodity loans and allow
program administrators to set local repayment rates closer to
prevailing market prices so the Federal Government no longer
covers additional, unnecessary costs.
Cost savings: $320 million in 5 years.
iii. agricultural export programs
A. Export subsidies:
1. Eliminate the Export Enhancement Program.
Cost savings: $4.16 billion over 5 years.
2. End EEP for individuals with annual net taxable income
of more than $120,000 and corporations with annual net
taxable income of more than $5 million.
Cost savings: $6 billion over 5 years.
B. USDA's Export Credit Programs; reduce loan guarantees
made and eliminate loans to high-risk borrowers:
Cost savings: $1.14 billion over 5 years.
C. The Market Promotion Program:
1. Eliminate the Market Promotion Program.
Cost savings: $500 million over 5 years.
2. Permanently extend MPP at the lower OBRA-93 level.
Cost savings: $2.6 million over 5 years.
3. End Federal MPP subsidies for individuals with annual
net taxable income over $120,000 and corporations with annual
net taxable income over $5 million.
Cost savings: $500,000 over 5 years.
iv. disaster assistance and crop insurance
A. Replace the Federal Crop Insurance Program with standing
authority for disaster assistance:
Cost savings: $1.6 billion over 5 years.
B. Require the FCIC to set premiums and pay indemnities
based on an areas performance rather than that of an
individual farmer
Cost savings: $551 million over 5 years.
Chapter 12: Proposals To Reform Miscellaneous Entitlement Programs
general science, space, and technology
A. Charge market prices for electricity sold by power
marketing administrations:
Cost savings: $4.8 billion over 5 years.
ii. national resources and environment
A. Improve pricing for commercial and recreational uses of
public land:
1. Reform Federal water policy.
Option 1: Allow farmers who grow agricultural commodities
that are in surplus to receive only one of the Federal
subsidies: either crop price support payments or Federally
subsidized water.
Option 2: Require that farms of more than 960 acres be
charged the full cost of Federal irrigation water. Although
current law contains this requirement, it is often
circumvented because of the vague definition of the term
``farm.''
Cost savings: $110 million over 5 years.
2. Raise recreation fees at Federal facilities.
Cost savings: $720 million over 5 years.
B. Change the revenue-sharing formula from a gross-receipt
to a net-receipt basis for commercial activities on Federal
land:
Cost savings: $880 million over 5 years.
C. Index nuclear waste disposal fees for inflation:
Cost savings: $255 million over 5 years.
D. Charge royalties for hardrock mining on Federal lands:
Cost savings: $280 million over 5 years.
III. COMMERCE AND HOUSING CREDIT
A. Increase FCC user fees to cover all costs currently
financed through the general fund:
[[Page S1327]] Cost savings: $575 million over 5 years.
B. Charge a user fee on commodity futures and options
contract transactions:
Cost savings: $310 million over 5 years.
C. Grant the Government an option to buy shares of
depository institutions that convert from mutual to stock
form:
Cost savings: $310 millon over 5 years.
IV. TRANSPORTATION
A. Establish charges for airport takeoff and landing slots:
Cost savings: $1.5 billion over 5 years.
B. Establish user fees for ATC services:
Cost savings: $7 billion over 5 years.
C. Impose user fees on the Inland waterway system:
Cost savings: $3.14 billion over 5 years.
V. EDUCATION
A. Reduce subsidies to students for Stafford loans:
1. Require students to pay in-school interest.
Cost savings: $9.56 billion over 5 years.
2. Raise the Loan Origination Fee.
Cost savings: $1.53 billion over 5 years.
B. Reduce Stafford loan spending by including home equity
in the determination of financial need:
Cost savings: $400 million over 5 years.
VII. ALLOWANCES
A. Charge a penalty for early redemptions of saving bonds:
Cost savings: $240 million over 5 years.
Mr. HOLLINGS. Now, Mr. President, if you want your knees to buckle,
read that. Dick Armey is right. If you want your knees to buckle, read
that one, or listen to the discretionary cuts. I would not favor half
of these. I probably would not favor 70 percent of these cuts. I have
not gone down and said what I would cut.
I am trying, as I would, when I was chairman of the Budget Committee,
to pose to the colleagues here the art of the possible. Here is what is
necessary. Here is what has to be done. And then, assuming it is done,
the key point here is those are 1996 outlay amounts. That amounts in
1997 to only $58.407 billion in cuts. If you look at 1997, you have to
have $74 billion in spending cuts, so you are still $16 billion shy
next year when you work on the budget. The same will be true the year
after that, and the year after that, and the year after that.
You see, this is what my colleagues have to understand. If they do
not put the budget on a glidepath to zero now, you will always be
playing catch-up. The next thing you know, you'll be moving the
targets.
Now, let us not talk fancifully. I will never forget, Mr. President,
when the distinguished Senator from New Mexico--we all act like
government started up when Gingrich came to town. We have been in
government for quite a while, and several items in the contract, of
course, we not only have favored, we cosponsored 10 years ago. The
line-item veto. I used the line-item veto as a Governor 35 years ago.
So it is not an invention in a contract. Last year, the distinguished
Senator from New Jersey, Senator Bradley, and I tried again. We got 53
votes. The idea is separately enroll individual items so the President
can veto legislation like we do at the State level.
Many of these so-called new ideas have been tried before. Back in
1986, the distinguished chairman and ranking member of the Budget
Committee got nettled in the debate because colleagues on both sides of
the aisle were chastising him saying, ``Why don't you put in the cuts?
Why don't you put in the cuts?'' So in a fit of, let us call it,
sobriety, the Domenici-Chiles modified amendment was introduced
expressing the sense of the Senate that some 44 programs be terminated.
And I will ask that the list be included in the Record. You hear the
same song in the Contract With America. We are going to do away with
the ICC. We are going to do away with weatherization assistance. We are
going to do away with the community services block grants and the
travel and tourism administration.
Mr. President, I ask unanimous consent that those programs be
reprinted at this particular point in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Reagan Budget Cuts--1986
Work incentive program (WIN).
General revenue sharing.
Conrail.
Trade adjustment assistance to firms.
Appalachian Regional Commission.
Economic Development Administration.
Urban development action grants.
U.S. Travel and Tourism Administration.
Export-Import Bank direct loans.
Community services block grant.
Rental housing development action grant (HODAG).
Section 312 rehabilitation loan fund.
Postal Subsidy.
FEMA supplemental emergency food and shelter.
Advanced communications technology satellite.
OPIC insurance programs.
Amtrak.
Interstate Commerce Commission (terminations and
transfers).
Washington Metro construction grants.
Maritime cargo preference expansion.
EPA sewage treatment grants.
Impact aid (type ``b'' students).
Library programs.
Small higher education programs.
State student incentive grants.
College housing loans (new loans).
Public Health Service (health profession subsidies).
Legal Services Corporation.
Certain soil conservation programs.
Federal crop insurance program.
Rural housing loans/grants.
Small Business Administration (eliminations and transfers).
Rental rehabilitation grants.
Section 8 moderate rehabilitation.
Section 202 elderly and handicapped housing.
Section 108 loan guarantee program.
Rural development program.
Rural Electrification Administration subsidies.
Weatherization assistance program.
LANDSAT (eliminate future subsidies for contractors).
Sea grant and coastal zone management grant programs.
Juvenile justice grants.
Justice State-local assistance grants.
Public debt reimbursements to Federal Reserve Banks.
The PRESIDING OFFICER (Mr. Thompson). The Senator from South
Carolina.
Mr. HOLLINGS. So the Senator from New Mexico, under the best of the
best dismantlers of Government, President Ronald Reagan, made the
motion that we terminate these programs. In other words, what he did
was take the Reagan spending cuts.
Everyone has said, ``Oh, if they only took the cuts.'' They have
claimed that Congress went ahead with increases in defense and other
programs, but never enacted the cuts like we were supposed to do. We
tried with a sense-of-the-Senate. Do you know how many votes they got?
Mr. President, 14 votes out of the 100.
So we have a track record. We have tried it before, 10 years ago. We
will try it again. But we have to face the facts as the facts face us.
We could not get it done then and I am sincerely concerned that we will
not get it done now. But that is no reason not to try. I am not trying
to mislead the colleagues. I am willing to consider every spending cut
offered by my colleagues. But my colleagues must realize that every
dollar in savings we fail to achieve through spending reductions, we
must make up through taxes.
With a 5-percent VAT, we can get the job done. We had eight votes for
this particular initiative in the Budget Committee. The distinguished
Senator on the other side of the aisle from Minnesota, Senator
Boschwitz, and the distinguished Senator from Missouri, Senator
Danforth, joined with the Senator from South Carolina and we were
conscientious about our charge. And none of us wanted to vote for
taxes. If you want to run for reelection on this particular platform,
do not come to South Carolina. I tried it, and barely survived. I was
known as ``High Tax Hollings'' for putting out such proposals.
Nowhere did the press say I was trying to cut interest taxes. Nowhere
did the press say I was trying to cut spending. You cannot get that
explanation on a 20-second sound bite. So they take advantage of the
printed Record and they distort what you are trying to do.
If we exclude the trust funds, cut spending by $406 billion, and
enact a 5-percent VAT, we can finally eliminate the deficit by 1999.
Even then, though, we will still have annual gross interest costs of
$368 billion--that is more than a billion a day--on interest costs on
the debt. So interest taxes are still on automatic pilot. It is not
until the year 2002, when you have dropped from $368 billion to $354
billion, that you have finally have gross interest costs on a downward
path. But it has to be done.
I have one sheet of paper here that outlines the scope of the
problem. Here it is. This does not include the billions necessary for
middle-class tax cuts. Both sides have been misguided in pandering to
the middle class. Brother, this is no time for middle-class tax cut
[[Page S1328]] or any other tax cut. The problem is a shortage of
revenues. The only way to stop spending on automatic pilot, the only
way to stop raising interest taxes is to make the spending cuts you can
and to raise taxes. I have outlined one way of doing it.
I am going to introduce this amendment but I want to remind my
colleagues what we have created is a matter of record. It is what the
distinguished Presiding Officer has come into town to confront.
We were here and we went through this charade. We dignified it with a
commission. This Senator went through with it with President Richard
Milhous Nixon. He said get rid of the Government and send it back in
block grants.
Then came President Reagan and he had appointed a Presidential
Advisory Committee on Federalism and the Coordinating Task Force on
Federalism. This Senator, at the appointment of the distinguished
President, served with other Senators.
I ask unanimous consent that we have printed in the Record this list
of commission members.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Presidential Advisory Committee on Federalism
Governors
Gov. George Busbee (D-Georgia).
Gov. Scott M. Matheson (D-Utah).
Gov. Lamar Alexander (R-Tennessee).
Gov. James R. Thompson (R-Illinois).
Gov. Pierre S. DuPont IV (R-Delaware).
Gov. Richard A. Snelling (R-Vermont).
State Legislators
Representative T. W. (Tom) Stivers (R-Idaho).
Senator Ross O. Doyen (R-Kansas).
Senator Ann Lindeman (R-Arizona).
Speajer Benjamin L. Cardin (D-Maryland).
Speaker John J. Hainkel, Jr. (D-Louisiana).
Assemblyman Dean Rhoads (R-Nevada).
Mayors
Mayor Edward I. Koch (D-New York City).
Mayor William H. Hudnut III (R-Indianapolis).
Mayor Margaret Hance (R-Phoenix).
Mayor Ferd Harrison (R-Scotland Neck, N.C.).
Mayor Tom Moody (R-Columbus, Ohio).
County Officials
J. Richard Conder (D-Richmond County, N.C.).
Roy Orr (D-Dallas County, Tex.).
William Murphy (R-Rensselaer County, N.Y.).
Sandra Smoley (R-Sacramento County, Calif.).
Bruce Neslande (Nonpartisan-Orange County, Calif.).
Donald L. Smith (R-Anchorage Municipality, Alaska).
Members of the U.S. Senate.
Senator William V. Roth, Jr. (R-Delaware).
Senator David Durenberger (R-Minnesota).
Senator Pete V. Domenici (R-New Mexico).
Senator David L. Boren (D-Oklahoma).
Senator Ernest F. Hollings (D-South Carolina).
Senator Paul Laxalt (R-Nevada).
Members of the House of Representatives
Representative Richard T. Schulze (R-Pennsylvania).
Representative Richard Bolling (D-Missouri).
Representative L. H. Fountain (D-North Carolina).
Representative Clarence Brown (R-Ohio).
Representative Frank Horton (R-New York).
Representative Jack Brooks (D-Texas).
Private Citizens
F. Clifton White.
Dr. Robert B. Hawkins.
C. D. Ward.
Former Senator Clifford Hanson.
Former Gov. Otis Bowen.
The Coordinating Task Force on Federalism
Senator Paul Laxalt, Chairman.
Secretary Terrel Bell.
Secretary Samuel Pierce
Secretary Donald Regan.
Secretary Richard Schweiker.
Secretary James Watt.
Director David Stockman.
Edwin Meese III.
James A. Baker III.
Richard S. Williamson.
Martin Anderson.
Robert Carleson.
Mr. HOLLINGS. We went into the Cabinet room and sat around the table.
You could see the beginning of unfunded mandates for the cities, the
counties, and the States. They said get rid of the Government, get rid
of it, send it back to the cities, the counties, the States. But what
they did was eliminate the money in October 1986. The first bill that
the distinguished Senator from Tennessee, Senator Howard Baker,
introduced was a revenue sharing bill. I had already introduced mine on
February 1, 1967. We had both come from State governments and we were
complaining then about unfunded mandates.
So this has gone on from 1971 to 1995, some 24 years. I came to
Washington and identified with the problem. We did get revenue sharing.
But then, we unfunded the edicts of the Congress in October 1986, when
we did away with revenue sharing.
Coming right to the point, I want to refer to the former director of
the Office of Management and Budget, David Stockman. In the spring of
1992 he had an article that appeared in a magazine called the New
Perspective entitled ``America Is Not Overspending.'' That ought to
throw everybody into shock.
The distinguished Congressman from Georgia along with our friend,
Congressman Kasich are putting government on trial. But I do not mean
to tuck tail and run, as Lyndon says. I mean to try the case.
Where we can get a line-item veto, where we can get a balanced budget
amendment, where we can get progress on reducing the deficit, they will
have my vote. If we do not adulterate the legislation, like the
unfunded mandates bill. I did not realize many of the changes made in
S. 1 until the distinguished Senator from West Virginia came here and
brought them to my attention.
I publicly stated that I favored the legislation to address the
problem of unfunded mandates. Such a bill was brought to the floor last
year.
Unfortunately, in their zeal to demonstrate how they can really run
government up here, the Republicans have been overreaching. I want to
help them. But I do not want to end up with a problem worse than the
one we started with. If we do not move in at this particular hour in
history, how will we ever get on top of this spending hemorrhage?
Let me get back to David Stockman. I quote:
The root problem goes back to the July 1981 frenzy of
excessive and imprudent tax cutting that shattered the
Nation's fiscal stability. A noisy faction Republicans have
willfully denied this giant mistake of fiscal governance and
their own culpability in it ever since. Instead, they have
incessantly poisoned the political debate with the mindless
stream of antitax venom while pretending that economic growth
and spending cuts alone could cure the deficit. It ought to
be obvious by now that we cannot grow our way out.
Mr. President, very quietly, let me read that first sentence because
it is almost heretic. ``The root problem goes back to the July 1981
frenzy of excessive and imprudent tax cutting that shattered the
Nation's fiscal stability.'' That is exactly what we have going on now.
History repeats itself. As Ronald Wilson Reagan says, ``Here we go
again.''
As Governor of South Carolina, my first order of business was to
raise some taxes, balance the budget, and get for the first time in our
history a triple-A credit rating. Moody's has raised us back to us a
triple-A credit rating. We had lost it for the past couple of years.
Standard and Poor's still has yet to do so. But the need to get that
triple-A credit rating reveals a funny juxtaposition of politicians
running for office. I cannot run for Governor of South Carolina unless
I promise to pay the bill; I cannot run for Senator of South Carolina
unless I promise not to pay the bill.
As a House Member of the South Carolina House of Representatives in
1950 I was trying to catch up with North Carolina. They had passed
their sales tax for education in 1936. Following suit, I authored the
sales tax. I heard arguments about its regressivity. But if we had not
passed that 3-percent sales tax--which now is at 5 percent--we would
never have had the schools. In addition to balancing the State budget,
we would never have had the educational system to attract investment,
to attract blue chip corporations, to attract Japanese and German
industries.
I was here in Washington the last time we had a balanced Federal
budget. We called back over to Marvin Watson and said, ``Ask the
President if we can cut another $5 billion.'' The entire budget--
Medicare, defense, domestic discretionary, everything else, interest on
the national debt--was $178 billion.
[[Page S1329]] Watson called back and said, ``President Johnson said
cut it another $5 billion.'' We cut it and gave President Richard
Milhous Nixon a balanced budget.
I am hearing all this stuff about a revolution 40 years in the
making. They are getting away with a lot of flourish and rhetoric and
headlines. But I have listened now since the beginning of the session,
and somehow, some way we have to develop some bipartisanship. We are
never going to do that unless we can get some truth in budgeting.
If they do not want to raise taxes and want to balance the budget
only through spending cuts, then they are whistling Dixie. You have to
do both. You have to freeze everything to begin with, obey the caps,
and then follow with additional spending cuts. And even with the
spending cuts and the 5-percent VAT, you do not really get into the
black until 1999.
Mr. President it is a very, very difficult thing that the contract
has taken up. That is why this Senator is not trying to out-headline
the Republicans on the other side of the aisle. I prefer headway to
headlines. I will continue to work with my friends on the other side of
the aisle. I worked last year with Republicans on the
telecommunications superhighway. We have had hearings galore on the
subject and we had a bipartisan bill 18 to 2 out of the committee.
The overwhelming majority of Republicans, with an overwhelming
majority of Democrats, in a bipartisan information superhighway bill
that had been worked out with various groups who all wanted these
services to be extended to the poor and to the public education
systems. That was ready to be passed. But the distinguished majority
leader--and it is of record--the Senator from Kansas held it up. I do
not say that lightly. I can show it to you in the Record. We were ready
to go bipartisan then, and I am ready to go bipartisan now. Let us not
come with just the headline and no headway. As Tennessee Ernie Ford
sang, ``Sixteen tons and what do you get, another day older and deeper
in debt.''
Mr. President in closing I ask unanimous consent that a table
entitled ``Senator Hollings on Truth in Budgeting'' which I have been
referring to throughout my speech be printed in the Record at this
point.
There being no objection, the table was ordered to be printed in the
Record, as follows:
Senator Hollings on Truth in Budgeting
Reality No. 1: $1.2 trillion in spending cuts necessary.
Reality No. 2: Not enough savings in entitlements. Yes,
welfare reform but job program will cost; savings
questionable. Yes, health reform can and should save some,
but slowing 10 percent growth to 5 percent--not enough
savings. No, none on Social Security; off-budget again.
Reality No. 3: Hold the line budget on Defense--no savings.
Reality No. 4: Savings must come from freezes, cuts in
domestic discretionary--not enough to stop hemorrhage in
interest costs.
Reality No. 5: Taxes necessary to stop hemorrhage in
interest costs.
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Deficit CBO Jan. 1995 (using trust funds)........ 207 224 225 253 284 297 322
Freeze discretionary outlays after 1998.......... 0 0 0 -19 -38 -58 -78
Spending cuts.................................... -37 -74 -111 -128 -146 -163 -180
Interest savings................................. -1 -5 -11 -20 -32 -46 -64
Total savings ($1.2 trillion).................... -38 -79 -122 -167 -216 -267 -322
Remaining deficit using trust funds.............. 169 145 103 86 68 30 0
Remaining deficit excluding trust funds.......... 287 264 222 202 185 149 121
5 percent VAT.................................... 96 155 172 184 190 196 200
Net deficit excluding trust funds................ 187 97 27 (17) (54) (111) (159)
Gross debt....................................... 5,142 5,257 5,300 5,305 5,272 5,200 5,091
Average interest rate on the debt (percent)...... 7.0 7.1 6.9 6.8 6.7 6.7 6.7
Interest cost on the debt........................ 367 370 368 368 366 360 354
----------------------------------------------------------------------------------------------------------------
Note.--Doesn't include billions necessary for middle-class tax cut.
Amendment No. 182
Mr. HOLLINGS. Mr. President, I send an amendment to the desk and ask
for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:
The Senator from South Carolina [Mr. Hollings] proposes an
amendment numbered 182.
The amendment is as follows:
At the appropriate place, insert the following:
SEC. . SENSE OF THE SENATE CONCERNING CONGRESSIONAL
ENFORCEMENT OF A BALANCED BUDGET
It is the Sense of the Senate--
(A) that the Congress should move to eliminate the biggest
unfunded mandate--interest on the national debt, which drives
the increasing federal burden on state and local governments,
and
(B) that prior to adopting in the first session of the
104th Congress a joint resolution proposing an amendment to
the Constitution requiring a balanced budget--
(1) the Congress set forth specific outlay and revenue
changes to achieve a balanced federal budget by the year
2002; and
(2) enforce through the Congressional budget process the
requirement to achieve a balanced federal budget in the year
2002.
Mr. HOLLINGS. Mr. President, they always say, ``He who seeks equity
must do equity.'' If we are asking the other side to lay it out, then I
think it is our duty over here to lay it out, too. That is what I have
attempted to do.
So, Mr. President, I see my distinguished colleague wants to come
back and be recognized. So I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. DODD. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. DODD. Mr. President, first of all, I want to commend my colleague
from South Carolina for this amendment. I know there will be those who
will argue that this amendment is an inappropriate amendment on this
particular bill because we are dealing with unfunded mandates. But I
suggest, Mr. President, that the amendment offered by the distinguished
Senator from South Carolina is consistent fully with the matter before
us--unfunded mandates. In the likely event that we adopt a
constitutional amendment requiring a balanced budget, particularly one
that includes a requirement that three-fifths of the Congress approve
new tax increases, we will be imposing a huge mandate on States and
localities. It may not be a de jure mandate, but it will be a de facto
mandate.
What Senator Hollings is suggesting with this amendment is a radical
notion, I suppose, in the minds of some. It is an outrageous idea that
we should have some idea of how this constitutional mandate requiring a
balanced budget in 7 years is going to be achieved. I know there are
those who think it is unfair to be asking such questions, but they are
questions we are asked as Members of the U.S. Senate by our
constituents all the time.
Many of our constituents are telling us, too, that they support a
constitutional amendment to balance the budget. We all know the polling
numbers on this issue. Eighty percent of the American public supports a
balanced budget amendment as long as it remains a slogan or a simple
statement of principle. They are all for the concept of the balanced
budget. But what happens when people are presented with various
spending cut options?
If you say, ``Do you want a constitutional amendment to balance the
budget?'' They say, ``Absolutely, we want that.'' But if you then say,
``You understand, of course, that may include some cuts in Social
Security.'' They say, ``Well, now, wait a minute, you did not tell me
that.'' You say, ``How about Medicare?'' They say, ``Wait, you are
getting a little far afield here. I said I want the budget in balance.
That is what I want. I did not say I wanted Social Security or Medicare
cut.'' You say, ``How about education?'' They say, ``That is not what I
meant either. Just balance that budget.'' Then you start talking about
how you get there from here, and you start to get what you always get.
It is like the old saying that ``Everyone wants to go to Heaven, but no
one wants to die.'' So we all want a balanced budget but we are all
very nervous about how you get there.
[[Page S1330]] Let me back up a bit, because I listened to my
colleague from South Carolina talk about his history on this issue, and
he has a distinguished one, going back to the very days the Budget Act
was adopted. He is one of only two people who served on the original
committee and chaired the Committee on the Budget.
Mr. President, I am familiar with the Senator's record because I
worked with him on a number of important budget issues going back to my
first days here in the early 1980's. I was the second Democrat after
the Senator from South Carolina to cosponsor the Gramm-Rudman-Hollings
legislation. Really, it was the Gramm-Rudman-Hollings-Dodd bill. I
thought that the Senator from Texas and the Senator from New Hampshire
and the Senator from South Carolina had a good idea, to try statutorily
to get our arms around the budget of the United States. I will not take
a back seat to anybody in our efforts in try to achieve that goal.
In 1982, I offered a requirement that any new increase in spending
must be paid for fully--a pay-as-you-go budget. I offered this
amendment from the very last chair in the far corner of this floor when
I was the most junior Member of this body. I got 22 votes. I was in the
minority in those days, not unlike today. Had we done it then, we are
told we could have actually had the Federal budget in balance by 1986
or 1987. With all the talk about the need for constitutional
amendments, there are those of us who have been through these battles,
trying all sorts of ways to inject discipline into the process.
I hope, as we examine the constitutional amendment, we would answer
our constituents' questions. They want to know how we are going to do
this. That's what this amendment requires. It simply says if you're
going to talk the talk of balanced budget, you've got to walk the walk
of how you get there. I hope it will be adopted so that we will be able
to lay out to the taxpayers in our communities exactly how we are going
to keep the promises that a balanced budget amendment would require.
The GOP spending cut plan is like Forrest Gump's box of chocolates--
you don't know what you're going to get when you dip your hand in.
All the Senator from South Carolina is suggesting is that we have a
description of the chocolates before we put them in our mouths.
Otherwise, we're talking about a huge potential stomach ache.
That is all this amendment asks. It does not say, ``Do not cut in
these areas.'' It just says, ``Tell us. If this is what you are going
to do, at least somebody outline it.''
I might point out, there are some significant proposals outlining how
we might do some of this. I would like to lay one of these out, if I
may.
Mr. President, this is a chart based on the Republican budget staff
proposal reported in the Washington Times earlier this month. This is
the so-called Republican path to a balanced budget amendment in the
year 2002.
The deficit estimates are lower then CBO and Treasury projections,
but they are still useful.
As you can see, the proposal estimates that it will cost more than $1
trillion to balance the budget over 7 years. The GOP tax cut proposal,
according to the Republican staff analysis will cost $346 billion more.
The Treasury Department estimates that the tax increases will be
somewhat higher. I am not going to use these numbers, though, Mr.
President. I will use only the staff numbers from the majority side of
the Budget Committee so that no one can accuse me of using biased
numbers prepared by a Democratic administration.
The GOP proposal also says that we are not going to reduce Social
Security. That has been said over and over and over again by the
majority. In fact, we are told that Social Security will go up $12
billion in the next 7 years.
We have been also told that there will be an increase in defense
spending of $82 billion.
So if you take all of these numbers together--again, not numbers from
the Democratic Policy Committee, or the Department of the Treasury, or
even the Congressional Budget Office, but from the Republican Budget
Committee staff--then the price tag for all of these promises is $1.53
trillion. This is the total cost that will have to be made up by the
year 2002 if we are going to achieve a balanced budget in that year.
How will we pay for all of these promises? Where will they be made
up? If we increase defense and Social Security spending, cut taxes, and
balance the budget, what will we cut?
This second chart shows where the cuts to pay for these promises will
come from. According to the Republican staff numbers, more than $970
billion will come from Medicare cuts, Medicaid cuts, and other
mandatory spending. And $386 billion will come from nondefense
discretionary spending.
If we make these cuts, then we should get a debt service reduction of
$164 billion. So that number in green here, is the number which would
depend upon these other two numbers being achieved. And that would get
you to $1.53 trillion, equaling the amount I mentioned earlier. That is
how we reach balance.
All this amendment says is, ``Would you mind giving us some idea so
we can go back to our taxpayers and constituents and tell them
specifically how we are going to achieve more than $1.5 trillion in
spending cuts? Where will the cuts come from? Don't go around asking us
to support a conclusion without giving us some idea of how we are going
to achieve those results.''
Earlier the Senator from South Carolina introduced into the Record,
Mr. President, a list that was put together by our distinguished
colleague from New Hampshire, Senator Gregg outlining options for
spending cuts. They include reducing student loan subsidies, means
testing Medicare, cutting in half funding for Head Start--maybe one of
the finest programs for children and early education ever devised--the
maternal child health block grants, and preventive health services
block grants, deferring military COLA's, cutting veterans benefits, and
eliminating Medicaid transition benefits for AFDC recipients. The list
is 50 pages long.
I am not suggesting that these items should not be touched at all,
but it seems to me you are beginning to get some sort of a blueprint
here of what is involved.
As the Senator from South Carolina pointed out, when you start
counting whether or not you have 51 votes here for cutting out student
loans--at the very time when working families are trying to make it
more feasible for their kids to afford higher education--you are going
to realize you cannot pass these cuts.
Nor do you have the votes for cutting Head Start. I was responsible
for the reauthorization of the Head Start Program last year. There was
not a dissenting vote or voice out of 100 U.S. Senators on the
reauthorization of Head Start--not one. It was passed unanimously by
voice vote. And yet now some are talking about cutting that program in
half.
I do not know many Senators here who honestly believe you ought to be
cutting Head Start in half. And if there are some, there may be 3 or 4
or 5 or 10. I do not think there are 51 here who studied the program
and believe it should be cut. Head Start has not been a Democratic
program, or a Republican program--it has always enjoyed broad,
bipartisan support.
The distinguished Senator from Kansas [Mrs. Kassebaum] worked
tirelessly to put together a good Head Start Program last year. Without
her support, we would not have gotten it done. I am not going to speak
for her here. But again, there was not some great battle out here on
the floor of the U.S. Senate to reauthorize and fund Head Start.
Does anyone really believe there are 51 votes to cut veterans
benefits? Are we going to defer military COLA's--at a time when we are
trying to strengthen the military budget, and attract and retain the
most talented people we can find. Are there 51 votes? I do not think
so.
It seems to me, before you start jamming this into the Constitution
we ought to think through all of these important issues. If a balanced
budget amendment is adopted and we are unable to balance the budget,
then we will turn the Supreme Court of the United States into a Budget
Committee deciding every major budget
[[Page S1331]] choice. The Supreme Court will be deciding whether or
not the legislative branch achieved the constitutional requirement of a
balanced budget, and then they will decide how to allocate funding
levels.
I remember a few years ago people railing, and I think rightfully so,
against an unelected, lifetime appointee sitting on a bench
legislating--legislating. I do not know how many speeches I heard in
this body objecting to the nine members of the Supreme Court
legislating.
That is the business of this body, to legislate. And yet, in effect,
we will be asking the Supreme Court of the United States to legislate
on the budget when we do not achieve, if we do not achieve, the balance
which is required by an amendment in the year 2002.
So I again suggest and emphasize here what the distinguished Senator
from South Carolina is proposing makes some sense. We are likely to
create a train wreck, an absolute train wreck.
An absolute train wreck. Now, we have done that in the past. But the
problem in the past was not as significant because it was a statutory
train wreck. It did not go to the organic law of the United States.
What is being talked about here is changing the organic law of the
United States. Of course we know when we do that we run the risk of
having a far more difficult time adjusting if we are wrong.
In the 1980's, we did things by statute. We had the Gramm-Rudman-
Hollings proposal, and a number of freezes and the like. We found out
they did not quite work as expected. When tested, the theories did not
add up. We went back and changed the statutes and began to get on our
feet.
The people who paid the greatest price, of course, for our mistakes
were middle-income workers. They always do. And, they will be
undoubtedly called upon to do so again when the next train wreck
occurs. We always go back to the people that fight the wars and raise
their taxes. They are the ones who will pay the bill if this does not
work.
The difference here is organic law. When we change organic law and
then discover a mistake, it is very difficult to correct. I think we
should proceed cautiously and carefully and ask the types of questions
that our constituents are asking of us.
Where will the cuts be made? How will you do this? Are you really
going to go after Medicare? We saw what happened on the surveys
conducted on the balanced budget amendment, 80 percent or so are for
it. But when we talk about cutting student loans, education, Medicare,
Social Security, et cetera, the support for that amendment drops
dramatically. I am not suggesting these programs should never be
reduced. I would not want to suggest that we should never make changes
in any of these programs. I would not subscribe to that view.
I have been here long enough to know what happens when we try to make
difficult budget choices. As I mentioned a while ago, I offered a pay-
as-you-go proposal. I did not pick out a particular program. I said how
about paying for everything? We had 22 votes for paying for things. Now
when we start requesting details, people start trying to take things
entirely off the table. Forget Social Security some will say. That is
off entirely. Others will say take defense spending off the list of any
potential cuts. Although there is an argument being raised by some that
we can do with a lot less, I, for one, would raise some reservations
about that. The world is changed, more complicated, requires different
thinking in this area.
I do not know of anyone who really believes, at least not a majority,
that we ought to take a meat ax to the defense budget. We have heard
over and over again from the military leadership that it is difficult
to retain good people. We do not have a draft any longer. We have to
recruit, and we need the best educated, sophisticated people in the
military that this country has to produce. And it does not make sense
to be talking about slashing COLA's for people in the military.
Let me again point out if I can, Mr. President, what these cuts may
mean. A recent study by the children's defense fund reports that the
costs of balancing the budget alone--while protecting Social Security
and defense spending--would result in: 7.6 million children losing
federally subsidized school lunches--I do not think there are 51 votes
here to do that; 6.6 million children losing health care coverage
through Medicaid; dropping more than 5 million child support cases that
hold absent parents accountable for supporting their children; 4.3
million children losing food stamps; and 2 million young children and
pregnant women losing nutritional assistance through the WIC Program--
one of the strongest supported programs in Congress. The Women,
Infants, and Children Program historically has had strong bipartisan
support.
This analysis does not consider the costs of financing the Contract
With America tax breaks at all--more than 30 percent of which would
benefit households with incomes of greater than $200,000.
So, Mr. President, I suggest we look through the eyes of a child at
what this means. We should face the realities here. I do not know of
anyone in the body who honestly believes that children ought to be
asked to pay the price. We ought to be seeing to it that they will not
be disadvantaged. We are not talking about luxury items here. We are
talking about basic essentials that they need. So, again, I emphasize
that a good hard analysis of what all of this means, I think, is
critically important for all of us.
There is an old advertisement on television that may say it best.
That advertisement for a Wall Street firm says, ``We make money the
old-fashioned way.'' Well, maybe we ought to reduce the deficit the
old-fashioned way. That is, we ought to roll up our sleeves and go to
work on it.
I heard a lot of talk here over the last number of weeks about
reducing the deficit. This administration over the past 2\1/2\ years
has achieved through the budget process real reduction in the deficit.
That is not my conclusion. That is the conclusion of the Congressional
Budget Office and others who have no particular ax to grind. They have
concluded that we have achieved 3 consecutive years of deficit
reduction, the first time since the Truman administration, to the tune
of $700 billion in deficit relief. That is pretty significant.
We must continue on this path. We must look at current programs, and
ask these questions. How can we do a better job? Where can we cut back?
We must roll up our sleeves and do the job.
The one thing people are tired of and they expressed it strongly on
November 8 is gimmickry. The blue smoke and mirrors, three-card monte,
now-you-see-it, now-you-do-not, kind of approach. Dynamic scoring.
Threatening to do away with the Bureau of Labor Statistics if they do
not come up with the right numbers on inflation. That is not the way we
achieve a balanced budget. We must not cook the books and make up the
numbers. People want Members to be honest and do the real work.
I would just warn those who are strong advocates for the
constitutional approaches, we have gone through more than 200 years of
history. We have amended the Constitution, Mr. President, 27 times. I
see the distinguished Senator from West Virginia and I will watch him
carefully because if I am wrong on my numbers he will correct me with a
nod; 27 amendments in 200 years, and I believe roughly 11,000 proposals
to amend the Constitution of the United States in that same 206-year-
period. Some 11,000 ideas. And never once have we decided to inject
into the Constitution economic theories that may be terribly wrong.
We have been through a great Civil War. We have been through two
world wars, and a Great Depression in this century. For a period of 15
years we have had growing deficit difficulties. The last President to
submit a balanced budget was Jimmy Carter. That was the last submission
by a President of a balanced budget. In 1969, Lyndon Johnson submitted
the last budget with a surplus.
In 1981, the deficit was around $35 billion with a national debt of
under $1 trillion. After 200 years, we had a national debt of less than
$1 trillion. In the last 15 years, 12 years of the administrations of
President Reagan and President Bush, we have quadrupled the national
debt, and brought us to annual deficits hovering around $200, sometimes
$300 billion a year.
[[Page S1332]] We all want to do what we can to balance the budget.
But I would strongly urge, Mr. President, that we ought not to take 15
years of troublesome deficit spending and deny 205 years of
constitutional history in the process. We should go through the
statutory process, come up with whatever ideas we can. But, Mr.
President, in my view, we will deeply regret monkeying around with the
Constitution of the United States in trying to solve an economic
problem that has been created over the last 15 years that is not
insolvable. It is solvable.
By writing this into the Constitution and inviting the courts to
become involved in deciding these matters we will only complicate the
problem, not make it easier. We are told all the time, some 42 States
require a balanced budget in their State constitutions. Mr. President I
would suggest to Senators that without exception those States have come
up with all sorts of ideas to avoid that responsibility.
Everyone knows about bonding. We bond things or create a capital
budget on the side so we do not have to meet that obligation. Every
imaginable gimmick is used to avoid making the difficult decisions. I
can well imagine that future Congress' will employ some new dynamic
scoring technique,
or some new threat to the Bureau of Labor Statistics that, if they do
not come up with an inflation number they like, they will cut off your
budget. That is not healthy. That is not the way to be proceeding, not
the way to be proceeding at all. It poses serious, serious problems.
So, again, I strongly urge that we endorse unanimously the proposal
of the Senator from South Carolina. I think it sends a positive message
to people that we are concerned about what happens. I will tell you
right now that it is not at all reassuring to hear the majority leader
of the House of Representatives say that we cannot tell people out
there how we plan to balance the budget because their ``knees will
buckle.'' That is not a reassuring quote. I am sure my constituents are
going to love to hear that one. We cannot tell you because your knees
may buckle. Well, I do not mind a politician's knees buckling, but I do
not think my constituents who depend upon Medicare should have to have
their knees buckle or some child out there that needs a school lunch or
Head Start Program should have to have their knees buckle in the
process. Do they not have a right to hear from their elected
representatives in advance what we intend to do to them?
Is it a radical notion that somehow our constituents ought to get at
least some blueprint of how this is going to work and who is going to
be asked to pay? Is it outrageous of them--are they being insolent for
demanding of their elected representatives that we give them some idea
of how this is going to be achieved? Should we not tell them because
they might not like what they hear? That is what we are saying, in
effect, we should not tell them because they might not like what they
are going to hear.
This is not a base closure commission we are talking about; we are
talking about making major changes to basic programs that people need
to survive.
Again, if the pain is going to be shared, let us do it in an
equitable fashion. But when you take off Social Security and take out
defense and you talk about huge tax cuts--30 percent of which go to
people making in excess of $200,000--are you being fair? I am not
opposed to giving people in the upper incomes a tax break. I do not
like this class-warfare language. But in the distribution of pain, you
have to ask if 30 percent of the tax cuts should come from the people
in that income bracket. I do not think so if it is going to be fair and
equitable.
The Senator from South Carolina, I think, has proposed a reasonable
amendment. I urge my colleagues to support this effort to inform the
American public of the important budget decisions this body intends to
make in the years ahead.
Mr. President, we are going to have wonderful opportunities, I
presume, in the next few weeks, when the constitutional amendment on
the balanced budget comes to the floor, to engage in some significant
debate about that alone. But before we get there, I think we should lay
out the details of how we plan to pay for our trillion dollar plus
promises.
I strongly urge my colleagues to support the Hollings amendment.
Several Senators addressed the Chair.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. KEMPTHORNE. Mr. President, I know that we do have those Senators
who wish to address this issue. I know that the chairman of the Senate
Budget Committee also would like to address this particular amendment
that we have before us. I have discussed the following unanimous-
consent request that I will be making with the sponsor of the
amendment.
Mr. HOLLINGS. Will the distinguished Senator yield? Can we make it 40
minutes? Instead of 30 minutes to a side, 40 minutes to a side?
Unanimous-Consent Request
Mr. KEMPTHORNE. All right.
Mr. President, I ask unanimous consent that there be 80 minutes for
debate prior to a motion to table the pending amendment, to be equally
divided in the usual form; that no amendments be in order prior to the
motion to table the pending amendment; that following the conclusion or
yielding back of time, the majority manager, or his designee, be
recognized to make a motion to table the pending amendment; and that
the vote on the motion to table the pending amendment occur after 4
p.m. tomorrow.
Mr. BYRD. Reserving the right to object.
Several Senators addressed the Chair.
The PRESIDING OFFICER. Is there objection?
Mr. BYRD. Reserving the right to object.
Mr. HOLLINGS. Reserving the right to object.
The PRESIDING OFFICER. The Senator from South Carolina.
Mr. HOLLINGS. Also the yeas and nays. I am sure the distinguished
Senator from Idaho, if it is agreed to--and I am perfectly willing to
agree to it as he stated it--will also ask for the yeas and nays on the
motion to table.
Mr. KEMPTHORNE. That would be my intent.
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. Reserving the right to object, and I do not think that
I will, Mr. President, I have an amendment that is similar. It is very
much within the same framework, though without reference to date. I do
not think it would take me more than 10 or 15 minutes to offer this. I
wonder whether I could, as a part of this unanimous-consent agreement,
have the opportunity to offer this amendment after this debate since it
is exactly within the same framework. I would not take a great deal of
time with it.
Mr. BYRD. Mr. President, reserving the right to object.
The PRESIDING OFFICER. The Senator from West Virginia.
Mr. BYRD. And I will object because I think there are some Senators
who are probably not here this afternoon who may want to discuss this
amendment.
Also I note that no other amendments would be in order prior to the
motion to table this amendment. I thought we would have a time in which
we could offer amendments, possibly get some action on some of them and
with the understanding and the request being, which was ordered, that
such amendments would have to be offered----
Mr. KEMPTHORNE. Will the Senator yield?
Mr. BYRD. By no later than 3 o'clock----
Mr. GLENN. Offered by 3 o'clock tomorrow, no votes until after 4
o'clock tomorrow.
Mr. BYRD. Yes.
Mr. KEMPTHORNE. If the Senator will yield.
Mr. BYRD. Yes.
Mr. KEMPTHORNE. This specific unanimous-consent agreement is that
there are to be no other amendments offered to this pending amendment
of Senator Hollings.
Several Senators addressed the Chair.
The PRESIDING OFFICER. The Senator from Florida.
Mr. GRAHAM. Reserving the right to object. Knowing that we have to
have our amendments offered before 3
[[Page S1333]] o'clock tomorrow, would it be possible that there could
be a short window to allow those of us who only wish to offer
amendments in order to meet that 3 o'clock deadline to do so and thus
be assured that we will not end up inadvertently being precluded from
offering our amendment?
Mr. KEMPTHORNE addressed the Chair.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. KEMPTHORNE. I think that would be very appropriate. Also, I will
note that we have had other amendments sent to the desk this morning
which we have laid aside. In the event, for example, some of those
Senators who wish to speak on the pending amendment are not here, I
think it would be very much in order to lay it aside so we can continue
to facilitate the Senators who wish to lay their amendments down.
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. I first would like to thank the Senator from West
Virginia. I am really intending to make the same request. I think the
Senator from Washington has the same interest. I would like the
opportunity, now that I think I have clarification on this unanimous-
consent agreement, to at least be able to offer the amendment and have
it laid aside.
The PRESIDING OFFICER. Is there objection to the Senator's original
request?
Mr. BYRD. Mr. President, I object. I would like Senators to have an
opportunity to further study this amendment. There may be some of us
who wish to speak on this amendment. Not many Senators were going to be
around this afternoon because there was an understanding we would have
no votes today. This does not keep the Senator from renewing the
request on tomorrow or making the motion any time he wishes after the
hour of 4 o'clock.
Several Senators addressed the Chair.
The PRESIDING OFFICER. The Senator from Florida.
Amendment Nos. 183 and 184, En Bloc
Mr. GRAHAM. Mr. President, I send to the desk two amendments and ask
that they be considered as offered under the unanimous-consent
agreement of last week and then to be set aside.
The PRESIDING OFFICER. There is an amendment pending.
Mr. GRAHAM. I ask unanimous consent that the pending amendment be set
aside for purposes of offering the two amendments which I have just
sent to the desk.
The PRESIDING OFFICER. Without objection, it is so ordered. Is there
objection to proposing the amendments en bloc? Without objection, it is
so ordered.
The PRESIDING OFFICER. The clerk will report the amendments.
The bill clerk read as follows:
The Senator from Florida [Mr. Graham] proposes amendments
numbered 183 and 184, en bloc.
Mr. GRAHAM. Mr. President, I ask unanimous consent that the reading
of the amendments be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendments are as follows:
amendment no. 183
On page 16, between lines 12 and 13, insert the following:
``(iii) if funded in whole or in part, a statement of
whether and how the committee has created a mechanism to
allocate the funding in a manner that is reasonably
consistent with the expected direct costs to each State,
local, and tribal government.
____
amendment no. 184
(Purpose: To provide a budget point of order if a bill, resolution, or
amendment reduces or eliminates funding for duties that are the
constitutional responsibility of the Federal Government)
On page 6, strike line 3 and all that follows through line
10, insert the following:
``(ii) would reduce or eliminate the amount of
authorization of appropriations for--
``(I) Federal financial assistance that would be provided
to States, local governments, or tribal governments for the
purpose of complying with any such previously imposed duty
unless such duty is reduced or eliminated by a corresponding
amount; or
``(II) the exercise of powers relating to immigration that
are the responsibility or under the authority of the Federal
Government and whose reduction or elimination would result in
a shifting of the costs of addressing immigration expenses to
the States, local governments, and tribal governments; or
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. Mr. President, I ask unanimous consent that the
pending amendment be temporarily set aside.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered.
Amendment No. 185
Mr. WELLSTONE. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER (Mr. Bond). The clerk will report.
The bill clerk read as follows:
The Senator from Minnesota [Mr. Wellstone] proposes an
amendment numbered 185.
Mr. WELLSTONE. Mr. President, I ask unanimous consent that the
reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
At the appropriate place, insert the following:
``( ) It is the sense of the Congress that the Congress
shall continue its progress at reducing the annual federal
deficit and, when the Congress proposes to the States a
balanced-budget amendment, must accompany it with financial
information on its impact on the budget of each of the
States.''
Mr. WELLSTONE. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
Is there a sufficient second?
Mr. KEMPTHORNE. Parliamentary inquiry.
The PRESIDING OFFICER. The Senator will state it.
Mr. KEMPTHORNE. Will the Senator restate what his request was?
Mr. WELLSTONE. Just asking for the yeas and nays on the amendment.
Mr. BYRD. Is the amendment pending?
Mr. WELLSTONE. Yes. I just asked for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is not a sufficient second.
Mr. GLENN. Mr. President, parliamentary inquiry.
Mr. WELLSTONE. Mr. President, I suggest the absence of a quorum.
Mr. GLENN. Will the Senator withhold?
The PRESIDING OFFICER. The Senator from Ohio.
Mr. GLENN. Mr. President, I believe we set aside the Hatfield
amendment this morning, and would that not have to be disposed of as
the pending business before we could move on to another amendment?
The PRESIDING OFFICER. It is the understanding of the Chair that the
unanimous consent agreement this morning was that the Hatfield
amendment was set aside for other amendments to be offered.
Mr. GLENN. To be offered. That does not answer my question, I do not
believe. Do we have to do anything to deal with the Hatfield amendment
before we can bring up other amendments?
The PRESIDING OFFICER. The Hatfield amendment has been set aside and
thus does not need to be disposed of.
Who seeks the floor?
Mr. WELLSTONE addressed the Chair.
The PRESIDING OFFICER. The Senator from Minnesota.
Mr. WELLSTONE. I renew my request for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
Yes, there appears to be a sufficient second.
The yeas and nays were ordered.
Amendment No. 186 to Amendment No. 185
Mr. WELLSTONE. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
The Senator from Minnesota [Mr. Wellstone] proposes an
amendment numbered 186 to amendment No. 185:
The amendment is as follows:
Strike all after ``( ) It'' and insert the following:
``the sense of the Congress that the Congress should continue
its progress at reducing the annual federal deficit and, when
the Congress proposes to the States a balance-budget
amendment, should accompany
[[Page S1334]] it with financial information on its impact on
the budget of each of the States.
Mr. WELLSTONE. Mr. President, I will be less than 2 or 3 minutes. I
know the Senator from Washington would want this amendment set aside,
but if I could give the background for just a couple of minutes.
I met with the legislative leadership back in Minnesota several weeks
ago, and the legislature passed a resolution. I just want to read one
paragraph:
Be it resolved by the Legislature of the State of Minnesota
that it urges the Congress of the United States to continue
its progress at reducing the annual Federal deficit, and when
the Congress proposes to the States the balanced budget
amendment, to accompany it with financial information on its
impact on the budget of the State of Minnesota for budget
planning purposes.
Mr. President, this resolution was also signed by the Governor on
January 20. And, again, this is very much in the spirit of what the
Senator from Connecticut was talking about and the Senator from South
Carolina. I will, of course, take the opportunity to speak about this
amendment at some length but not today.
I yield the floor.
Amendment Nos. 187 and 188, en bloc
Mrs. MURRAY addressed the Chair.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. Mr. President, I ask unanimous consent that the pending
amendment be laid aside in order that I can send two amendments to the
desk.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered.
Mrs. MURRAY. Mr. President, I ask unanimous consent to send to the
desk two amendments.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report.
The bill clerk read as follows:
The Senator from Washington [Mrs. Murray] proposes en bloc
amendments numbered 187 and 188.
Mrs. MURRAY. Mr. President, I ask unanimous consent that reading of
the amendments be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendments are as follows:
Amendment No. 187
(Purpose: To exclude from the application of the Act agreements with
State, local, and tribal governments and the private sector with
respect to environmental restoration and waste management activities of
the Department of Defense and the Department of Energy)
At the appropriate place in the bill, insert the following:
The provisions of this Act and the amendments made by this
Act also shall not apply to any agreement between the Federal
Government and a State, local, or tribal government, or the
private sector for the purpose of carrying out environmental
restoration or waste management activities of the Department
of Defense or the Department of Energy.
amendment no. 188
(Purpose: To require time limitations for Congressional Budget Office
estimates, and for other purposes)
On page 21, insert between lines 13 and 14 the following
new paragraph:
``(2) Time limitations for statements.--(A) The Director of
the Congressional Budget Office shall provide the statement
as required by this section--
``(i) relating to a bill or resolution ordered reported by
a committee, no later than one week after the date on which
the bill or resolution is ordered reported by the committee;
and
(ii) relating to an amendment or conference report, no
later than one day after the date on which the amendment is
ordered or the conference report is submitted.
``(B) Failure by the Director to meet the time limitations
in subparagraph (A) of this paragraph shall vitiate the
provisions of subsection (c)(1)(A) of this section.
Mr. KEMPTHORNE addressed the Chair.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. KEMPTHORNE. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mrs. MURRAY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. MURRAY. Mr. President, let me just comment that of the two
amendments I sent to the desk, one of them assures that we would not be
creating a big, new, powerful bureaucracy at the Congressional Budget
Office, and the other one relates to the effect of this bill on nuclear
waste cleanup efforts. I am especially concerned about some at the
Hanford site in my own State. I will be speaking on these amendments
later, but I did want to submit them today under the previous unanimous
consent.
I thank the Chair.
Mr. BYRD addressed the Chair.
The PRESIDING OFFICER. The Senator from West Virginia.
Mr. BYRD. Mr. President, has the Pastore rule run its course for the
day?
The PRESIDING OFFICER. The Senator is correct.
Mr. PELL. Mr. President, can I introduce a measure without the
Pastore rule applying?
The PRESIDING OFFICER. Will the Senator repeat his inquiry?
Mr. PELL. Does the Pastore rule still apply or can I talk on another
subject?
The PRESIDING OFFICER. The Pastore rule has expired.
amendment no. 180, as modified
Mr. PELL. Mr. President, I would like to commend and thank the able
Senator from North Dakota on modifying his metric conversion amendment.
While I opposed the provisions of the amendment that would have imposed
a 2-year moratorium, I am comfortable with asking the Commission on
Unfunded Mandates, which would be created under this legislation, to
look into the impact on States and localities of using the metric
system.
As many of my colleagues know, I have been a longtime proponent of
conversion to the metric system. I believe we can't afford not to
convert to the metric system. Not converting has already cost this
Nation a great deal.
The United States is one of three nations in the world, along with
Burma and Liberia, yet to change to metrics. More importantly, the
United States is the only industrialized nation in the world that is
not a metric country. With a growing global economy, thanks in part to
NAFTA and GATT, how can we as a nation expect to sell our products to
the rest of the world when those products literally don't measure up
with the rest of the world?
The United States stands to gain untold millions of dollars in
exports that we are currently losing, because our nonmetric goods are
almost excluded from international markets. In fact, the U.S.
Department of Commerce estimates that U.S. exports could increase by as
much as 20 percent by offering metric-sized goods.
Three instances of international trade problems caused by the
production of non-metric goods highlight the difficulties caused by our
nation's reluctance to go metric.
Saudi Arabia rejected a shipment of General Electric appliances
because the power cords were 6 feet long rather than 2 meters as
required by Saudi law.
A middle-eastern company was forced to rewire all the electronic
equipment it imported from the United States because standard American
wire sizes are different from international standards.
Countries around the world have great difficulty locating American
lumber mills willing to produce cut lumber in metric sizes.
Mr. President, I agree that the Federal Government should not require
States to do that which it is unwilling to do. In that regard, I have
and will continue to work to see that all portions of the Federal
Government comply with laws already on the books and that it leads the
way in converting to the metric system.
I am confident that the more we study the value of the metric system,
the more we will find that not joining the rest of the world will only
cost us more in the long run.
Several Senators addressed the Chair.
The PRESIDING OFFICER. The Senator from Ohio.
Amendment No. 182
Mr. GLENN. Mr. President, I rise to take just a very few minutes to
address the Hollings amendment. It is a sense-of-the-Senate amendment.
It talks about the importance of interest on the national debt as far
as being an unfunded mandate. But in part B, it says that prior to
adopting, in the first session of the 104th Congress, a joint
resolution proposing an amendment to the Constitution requiring a
balanced budget, a sense-of-the-Senate, then
[[Page S1335]] one, that the Congress set forth specific outlay in
revenue changes to achieve the balanced Federal budget by the year
2002; two, enforce the congressional budget process, the requirement to
achieve a balanced budget by the year 2002.
Let me address that briefly. I thought originally maybe that this did
not have any place being addressed on the unfunded mandates
legislation. This just says that we want to know in advance what the
impact is going to be. In other words, it is truth in legislating, as
best we can tell that truth, in advance.
I submit that is what this unfunded mandate legislation is all about.
We are trying to determine what the impact is in advance, and tell
States and local communities just exactly what Federal mandates are
going to do to them in advance. And we require the Congressional Budget
Office to actually spell out the dollar impacts on them in advance.
That is what Senator Hollings is proposing with this legislation. Why
should we not do this? Why should we not, to the best of our ability,
say how a balanced budget amendment, if it goes into effect, will be
dealt with? That is exactly what we are trying to do with this unfunded
mandates legislation as it deals with the States and local communities.
Apropos to this, I think when we come to consideration of a balanced
budget amendment, I read some figures over the weekend, I believe in
one of the columns, that if we take the things that everyone seems to
say are off limits in the House and here also--Social Security,
Medicare, interest on the national debt, and defense, those four
items--I do not know whether those can all be taken out and made exempt
from any consideration when we get into budget cutting or not. If we
cannot, if some of those come in, I say to the Social Security
recipients that some of your benefits are in danger. The same thing is
true with Medicare. We know we have to pay interest on the national
debt. We do not want to cut defense. We feel it has been cut enough
already.
So if you leave Social Security, Medicare, interest on the national
debt, and national defense off budget, or off limits, what does that
leave? As was pointed out in the column I read over the weekend, that
then would require approximately a little over a 30-percent cut in all
the other functions of Government; a 30-percent cut in all the other
functions of Government. If you take Social Security, Medicare,
interest on the national debt, and national defense off budget, it
would be a 30-percent cut in every other program.
If we applied that across the board, this means that next time you
climb on an airliner after this, maybe, you will know that 30 percent
of FAA funds; 30 percent of National Transportation Safety Board funds;
30 percent of CDC, the Centers for Disease Control funds, trying to
deal with the AIDS problem, an enormous problem; 30 percent of NIH
funds, the National Institutes of Health dealing with cancer problems;
FDA, trying to see what drugs are safe, are cut. You may say: We will
not deal with any of those; we would leave those fully funded. What
else gets cut? What else gets cut in that situation?
How about immigration? Do we want additional restrictions on
immigration? Do we want to provide the people to firm up the borders?
Would that get its 30-percent cut? How about farm subsidies? There is
an attractive one.
We are going to cut these 30 percent or more to make up for keeping
something else from this 30-percent cut. Then there are prisons, and we
could go on and on. We are dealing in this unfunded mandate legislation
mainly with the impact on the States and local communities.
What do the States get right now? States, right now, under
discretionary and entitlement funding, receive about $230 billion a
year, about 70 of that in discretionary funding and about 160 in
entitlements. This is broken down into Medicaid, for instance, and $173
billion goes into Federal and State, total, for Medicaid; 57 percent of
that is Federal, and 43 percent is State; that is $230 billion total.
I use that figure for this reason. If we pass something that says
that we are not going to say what we are going to cut, we are just
going to do that after we, in effect, threaten ourselves and say, OK,
we are going to force ourselves to buy a balanced budget amendment to
make these decisions but we are not going to say in advance where the
decisions are made, then I submit that the States with what they
receive now, what is given to them now for all these various programs,
that $230 billion is going to be a very, very attractive target for
budget cutters looking for some way to balance the budget without
getting into cuts on Social Security, Medicare, interest on the
national debt, or defense.
What Senator Hollings has proposed is a how-to piece of legislation--
knowing what we are going to do, giving us an idea of what we are going
to do in advance to get to a balanced budget. All of us want to get to
a balanced budget. Certainly, I do. I do not think there is anybody
here who does not want to get to a balanced budget. What Senator
Hollings says is let everybody, the States included, know in advance
whether they will be the ones who will be unfairly dealt with in this
other area if we pass a balanced budget amendment. Will the efforts to
balance the budget then come out of the State's hide of $230 billion
that we send from the Federal Treasury to the States every year?
Surely we would not take the other tack and say on Senator Hollings'
amendment that we would adopt in the first session a joint resolution
proposing an amendment to the Constitution requiring a balanced budget,
one, the Congress should not set forth specific outlay and revenue
changes. Surely we would never add that should not and prohibit anyone
from saying exactly how this is going to affect anyone by prohibiting
the listing of what the outlay and revenue effects would be. So all he
said is that in the Constitution requiring a balanced budget, the
Congress set forth specific outlay and revenue changes to achieve a
balanced Federal budget by 2002. It seems to me that we are just trying
to predict and make forecastable what is happening between the Federal
Government and the States with this unfunded mandate legislation.
All Senator Hollings is asking in his proposed amendment, it seems to
me, is that we do the same advanced kind of planning in trying to get
where the cuts or where the revenues would come from, what the impact
would be, the amounts, and trying to determine these things in advance.
So, Mr. President, I rise in support of Senator Hollings' amendment.
Mr. GRAHAM addressed the Chair.
The PRESIDING OFFICER. The Senator from Florida [Mr. Graham] is
recognized.
Mr. GRAHAM. Mr. President, earlier I had offered two of the three
amendments which I have reserved for the purposes of having them before
the Senate prior to the 3 p.m. deadline tomorrow.
I, therefore, ask unanimous consent that the pending amendment be set
aside for the singular purpose of allowing me to offer the third
amendment for consideration at a later date.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 189
(Purpose: To change the effective date)
Mr. GRAHAM. Mr. President, I send an amendment to the desk and ask
for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Florida [Mr. Graham] proposes an amendment numbered
189.
The amendment is as follows:
On page 33, strike lines 10 through 12 and insert the
following:
This title shall take effect on the date of enactment of
this Act, and shall apply to legislation considered on and
after such date.
Mr. GRAHAM. Thank you, Mr. President.
Mr. HARKIN addressed the Chair.
The PRESIDING OFFICER. The Senator from Iowa [Mr. Harkin] is
recognized.
Mr. LEVIN. Mr. President, I wonder if the Senator from Iowa will
yield.
Mr. HARKIN. I ask unanimous consent that I may yield to the Senator
from Michigan without losing my right to the floor.
The PRESIDING OFFICER. Without objection, it is so ordered.
[[Page S1336]] The Senator from Michigan [Mr. Levin] is recognized.
Mr. LEVIN. Mr. President, I ask unanimous consent that the pending
amendment be set aside and that amendments 172 to 177, which I sent to
the desk last Thursday night, be called up at this time, stated, and
then be immediately set aside.
The PRESIDING OFFICER. Is there objection?
Without objection, it is so ordered.
Amendments No. 172 through 177
Mr. LEVIN. Mr. President, I send a group of amendments to the desk,
en bloc, and ask for their immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Michigan [Mr. Levin] proposes amendments
numbered 172 through 177, en bloc.
Mr. LEVIN. Mr. President, I ask unanimous consent that reading of the
amendments be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendments are as follows:
AMENDMENT NO. 172
(Purpose: To provide that title II shall apply only after January 1,
1996)
On page 38, after line 25, insert the following:
``SEC. 205. EFFECTIVE DATE.
This title and the amendments made by this title shall take
effect with respect to regulations proposed on or January 1,
1996.''
____
AMENDMENT NO. 173
On page 26, between lines 5 and 6 insert the following:
(e) Requests From Senators.--At the written request of a
Senator, the Director shall, to the extent practicable,
prepare an estimate of the direct cost of a Federal
intergovernmental mandate contained in a bill, joint
resolution, amendment, or motion of such Member.
____
AMENDMENT NO. 174
(Purpose: To provide that if a committee makes certain determinations,
a point of order will not lie, and for other purposes)
On page 17, insert between lines 17 and 18 the following
new paragraph:
``(7) Committee determination of mandate disadvantageous to
private sector; waiver of point of order.--If a committee of
authorization of the Senate or the House of Representatives
determines based on the statement required under paragraph
(3)(C) that there would be a significant competitive
disadvantage to the private sector if a Federal mandate
contained in the legislation to which the statement applies
were waived for State, local, and tribal governments or the
costs of such mandate to the State, local, and tribal
governments were paid by the Federal Government, then no
point of order under subsection (c)(1)(B) will lie.
____
AMENDMENT NO. 175
(Purpose: To provide for Senate hearings on title I, and to sunset
title I in the year 2002)
On page 33, strike out lines 9 through 12 and insert in
lieu thereof the following:
SEC. 107. SENATE JOINT HEARINGS ON UNFUNDED FEDERAL MANDATES.
No later than December 31, 1998, the Senate Governmental
Affairs Committee and the Senate Budget Committee shall hold
joint hearings on the operations of the amendments made by
this title and report to the full Senate on their findings
and recommendations.
SEC. 108. EFFECTIVE DATE.
This title and the amendments made by this title shall--
(1) take effect on January 1, 1996;
(2) apply only to legislation considered on or after
January 1, 1996; and
(3) have no force or effect on and after January 1, 2002.
____
AMENDMENT NO. 176
(Purpose: To clarify the scope of the declaration that a mandate is
ineffective)
On page 24, line 18, strike out ``mandate to be
ineffective'' and insert in lieu thereof ``mandate to be
ineffective as applied to State, local, and tribal
governments''.
____
amendment no. 177
(Purpose: To clarify use of the term ``direct cost'')
On page 14, line 19 strike ``expected''.
On page 22, line 12 strike ``estimated''.
On page 22, line 22 strike ``estimated''.
On page 23, line 2 strike ``estimated''.
On page 23, lines 4 and 5 strike ``a specific dollar amount
estimate of the full'' and insert in lieu thereof ``the''.
On page 24, line 8 strike ``estimated''.
On page 24, line 15 strike ``estimated''.
Mr. HARKIN addressed the Chair.
The PRESIDING OFFICER. The Senator from Iowa, Mr. Harkin, is
recognized.
Amendment No. 190
(Purpose: To express the sense of the Senate regarding the exclusion of
Social Security from calculations required under a balanced budget
amendment to the Constitution)
Mr. HARKIN. Mr. President, while I know we are not considering it
today, there is much discussion going on around this town and the
country about our upcoming consideration of the balanced budget
amendment. I do not want to delay action on the bill before us, but I
believe it is critical that we ease the fears of millions of older
Americans who are worried about their security.
I have long supported a balanced budget amendment, and I expect to do
so again this year. There have been a number of issues raised
concerning the amendment--should there be a supermajority requirement
for tax increases; should there be truth in budgeting to require that
the cuts necessary to reach a balanced budget by 2002 be specified;
should we make provision for times of recession when there are more
demands on the Federal Government and tax receipts are down? Each of
these questions is very important and should be given the attention
they deserve. But, Mr. President, the one issue that is of greatest
concern, and the one I think necessary to address immediately by this
body, is whether Social Security should be allowed to be cut as part of
the balanced budget amendment.
Should Social Security funds be included along with all the receipts
and debits in calculating whether we have a balanced budget? I believe
we need to set the record straight about where the Senate stands on
this critical point. I hope the Senate could go on record unanimously
on this so that we can allay the fears that literally millions of older
Americans have.
I have received hundreds of calls, and even more letters, from older
Iowans who are scared to death that their Social Security is going to
be cut to balance the budget. Almost all of them subsist on little or
nothing more than their monthly Social Security check. They live on
fixed incomes and are struggling to meet the basics--pay their food,
utilities, and medical bills. A cut in Social Security would literally
mean for many not enough to eat or enough to pay heating, phone,
medical bills, and transportation.
To bring this home, I would like to read excerpts from letters a few
Iowans have written me. I have a letter here dated January 2, from Lime
Springs, IA:
Dear Senator Harkin: Will you please vote against any more
cuts in Medicare and Social Security. I am an 87-year-old
widow with Social Security of $440 a month, and I am trying
to stay off welfare. It is almost impossible for old people
who depend on Social Security to live anymore. Please help
us.
Another letter is dated January 4.
* * * I am a widow, age 78. I have been alone for 29 years
and never able to accumulate an estate, bonds, CDs, et
cetera. My income is $650 a month Social Security, and out of
that I must pay rent, electric, food, health insurance,
medical bills, doctors, prescriptions, et cetera, and I am
just barely able to cover the above expenses. There is no
money left over for clothes, recreation, et cetera, and I
would appreciate it if you would reject any cuts in Social
Security and Medicare.
Another letter is dated January 5 from Jefferson, IA. It says:
* * * We are semi-retired farmers facing higher property
tax, higher crop expenses and lower prices. If we don't have
money, we go without. Because my health has forced my
retirement at 62 years of age, I am now receiving a ``very
generous'' $334 a month Social Security. Now subtract $46.10
for Medicare, $56 Blue Cross supplemental, and then try to
spread it thin enough to pay for heart, diabetes and
arthritis medication at $3,000 per year.
We have worked hard, still paying on some farmland, knowing
that if either of us need to enter a nursing home, it will be
gone. Social Security is not welfare.
Well, I have a lot of letters like this and I am sure, Mr. President,
you and other Senators are receiving letters like this from your
constituents.
Mr. President, the amendment I am about to send to the desk I believe
is eminently reasonable and should be quickly passed by this body. It
is relatively short and straightforward.
I will not read the whole thing.
It is a sense-of-the-Senate resolution. It is supported by findings
that over 42 million Americans receive Social Security benefits,
including 3 million children, and 5 million disabled workers; that
Social Security is only the pension program for 60 percent of older
Americans. Almost 60 percent of the
[[Page S1337]] older beneficiaries depend on Social Security for at
least 50 percent of their income; 25 percent of recipients depend on it
for 90 percent of their income. Without it, 15 million Americans will
be thrown into poverty.
Basically, it is just a sense of the Senate that any joint resolution
providing for a balanced budget amendment to the U.S. Constitution
passed by the Senate shall specifically exclude Social Security from
the calculations used to determine if the Federal budget is in balance.
Mr. President, when you talk about the average Social Security
recipient, you are talking about people of very modest means. The
average monthly Social Security payment now is $679 a month. That is
$8,148 a year, just above the poverty level for a household of one. As
I said, for many senior citizens, Social Security represents 90 percent
or more of their entire income and it is particularly true of older
widows. For the majority of older widows, Social Security represents
the bulk of what they have to live on. So I understand them writing me
letters saying they are fearful of these cuts.
Mr. President, I should also note that I am not just hearing from the
elderly. I am also hearing from middle-age workers who are concerned
about the surplus in the Social Security trust funds that will be
necessary to pay the benefits when they retire. They are worried
because they know it may be just too tempting for politicians to dip
into the growing Social Security trust fund surpluses to pay down the
deficit. And they have every reason to be worried.
Today, the Social Security surplus stands at about one-half trillion
dollars. That is right. The Social Security trust fund has a surplus of
one-half trillion dollars,--$500 billion. By the year 2010, the Social
Security surplus is projected to reach $2.1 trillion. And by 2020, the
Social Security trust fund will grow to an astounding $3 trillion. That
surplus, nearly two times the entire Federal budget for this year, will
be very tempting to dip into to pay down the deficit.
Some will say a little out will not hurt us. But, in fact, Mr.
President, in the coming years, we will need to add to that surplus,
not take away from it.
The current projections are that even with a $3 trillion surplus in
the year 2020, the system will go bankrupt by around the year 2030,
after paying benefits to the baby boomers who will be retiring. So
about 35 years from now--and we have time within that 35 years to make
the necessary adjustment. So we need to make adjustments within the
next 35 years to further build up the surpluses after 2020 so that
those who are working now can be assured that their Social Security
will be there when they retire. So we need to add to the surpluses
later on, not take away from them.
Mr. President, I am certain that the amendment I am offering will be
supported by an overwhelming majority of Americans. Poll after poll has
indicated opposition to the cuts in Social Security benefits by the
elderly and by those now working.
So, Mr. President, it is a modest amendment. It is a sense-of-the-
Senate resolution. I think we ought to express ourselves on this bill.
Even though it does not have anything to do, I know, with unfunded
mandates, I think we have to express ourselves as soon as possible,
especially now in the middle of winter when so many elderly people are
concerned about Social Security cuts. And I think, if I am not
mistaken, that we will be on the balanced budget amendment right after
this bill is disposed of.
So, Mr. President, I send an amendment to the desk and ask for its
immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:
The Senator from Iowa [Mr. Harkin] proposes an amendment
numbered 190.
Mr. HARKIN. Mr. President, I ask unanimous consent that reading of
the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 50, add after line 6 the following new title:
TITLE V--MISCELLANEOUS PROVISIONS
SEC. 501. SENSE OF THE SENATE REGARDING BALANCED BUDGET
AMENDMENT.
(a) Findings.--The Senate finds that--
(1) social security is a contributory insurance program
supported by deductions from workers' earnings and matching
contributions from their employers that are deposited into an
independent trust fund;
(2) over 42,000,000 Americans, including over 3,000,000
children and 5,000,000 disabled workers and their families,
receive social security benefits;
(3) social security is the only pension program for 60
percent of older Americans;
(4) almost 60 percent of older beneficiaries depend on
social security for at least half of their income and 25
percent depend on social security for at least 90 percent of
their income;
(5) without social security an additional 15,000,000
Americans, mostly senior citizens, would be thrown into
poverty;
(6) 138,000,000 American workers participate in the social
security system and are insured in case of retirement,
disability, or death;
(7) social security is a contract between workers and the
Government;
(8) social security is a self-financed program that is not
contributing to the current Federal budget deficit; in fact,
the social security trust funds currently have over
$400,000,000,000 in reserves and that surplus will increase
during fiscal year 1995 alone by an additional
$70,000,000,000;
(9) this surplus is necessary to pay monthly benefits for
current and future beneficiaries;
(10) recognizing that social security is a self-financed
program, Congress took social security completely ``off-
budget'' in 1990; however, unless social security is
explicitly excluded from a balanced budget amendment to the
United States Constitution, such an amendment would, in
effect, put the program back into the Federal budget by
referring to all spending and receipts in calculating whether
the budget is in balance;
(11) raiding the social security trust funds to reduce the
Federal budget deficit would be devastating to both current
and future beneficiaries and would further undermine
confidence in the system among younger workers;
(12) the American people in poll after poll have
overwhelmingly rejected cutting social security benefits to
reduce the Federal deficit and balance the budget; and
(13) social security beneficiaries throughout the nation
are gravely concerned that their financial security is in
jeopardy because of possible social security cuts and deserve
to be reassured that their benefits will not be subject to
cuts that would likely be required should social security not
be excluded from a balanced budget amendment to the United
States Constitution.
(b) Sense of the Senate.--It is the sense of the Senate
that any joint resolution providing for a balanced budget
amendment to the United States Constitution passed by the
Senate shall specifically exclude social security from the
calculations used to determine if the Federal budget is in
balance.
Mr. HARKIN. Mr. President, I ask for the yeas and nays on the
amendment.
The PRESIDING OFFICER. Is there a sufficient second?
There is not a sufficient second.
Mr. KEMPTHORNE. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BINGAMAN addressed the Chair.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BINGAMAN. Mr. President, I ask the manager, did the Senator
intend to proceed with additional amendments now or prefer that we
wait?
Mr. KEMPTHORNE. Will the Senator yield?
Mr. BINGAMAN. I yield.
Mr. KEMPTHORNE. Mr. President, in discussing with the Senator from
Iowa, we do not have a problem laying aside the pending amendment while
we get additional information, and would note that the Senator from
Iowa has, I believe, a unanimous-consent request. I believe it would be
appropriate to lay the pending amendment aside and proceed with the
amendment of the Senator.
Mr. BINGAMAN. Mr. President, if it is in order, I ask unanimous
consent that I set aside the pending amendment and any pending
unanimous consent request.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 191
(Purpose: To provide that certain legislation shall always be in order)
Mr. BINGAMAN. Mr. President, I send an amendment to the desk.
The PRESIDING OFFICER. The clerk will report the amendment.
[[Page S1338]] The assistant legislative clerk read as follows:
The Senator from New Mexico [Mr. Bingaman] proposes an
amendment numbered 191.
Mr. BINGAMAN. Mr. President, I ask that further reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
On page 25, add after line 25 the following new section:
``(4) Determination by reporting committee of applicability
to pending legislation.--Notwithstanding any provision of
paragraph (1)(B), it shall always be in order to consider a
bill, resolution, or conference report if such report
includes a determination by the reporting committee that the
pending measure is needed to serve a compelling national
interest that furthers the public health, safety, or welfare.
Mr. BINGAMAN. Mr. President, the amendment that I have offered today
will allow a reporting committee--that is, any of the authorizing
committees--to ensure that a measure that committee determines is
necessary to serve a compelling national interest be given full
consideration by the Senate.
Mr. President, last week I raised several issues with my colleagues
from Idaho and Ohio regarding Senate bill 1. Specifically, we discussed
the fact that under S. 1, it would be out of order to proceed on any
legislation that imposes a cost of more than $50 million on other
levels of government unless the Federal Government is willing to pay
the full costs incurred by those other levels of government. I realize
a point of order would have to be raised by a Senator for the
legislation not to be considered. Nevertheless, if the point of order
is raised, then consideration of such a bill shall not be in order as I
read the unfunded mandates legislation we are considering today.
Mr. President, I believe that we go too far when we say that the
Senate should not consider a measure, regardless of its importance,
unless the Federal Government can cover all public costs associated
with that measure. We can all think of cases of a compelling national
interest with which we should proceed even if the Federal Government
does not intend to cover all the costs.
Some examples are control of nuclear waste, minimum wage laws, and
the control of terrorism. These are clear examples that I think most
Senators will agree with. In those cases, it is appropriate to provide
a mechanism through which a committee reporting a measure, armed with
the Congressional Budget Office cost estimate required by this
legislation, can make a determination that it should be in order for
the full Senate to consider the matter, and that no point of order
should prevent that consideration.
Our Federal system functions best when there is a partnership of
effort by local, State, and Federal Government, and tribal government,
in some cases. Many of the most successful programs that we have in
this country have been pursued as a result of just such a partnership,
constructed by the Federal Government. Examples are the Interstate
Highway System, Federal housing assistance, and the unemployment
insurance system.
If partnerships involving cost sharing by the different levels of
government are to occur, then under our Constitution, the Federal
Government is set up as the final arbiter of the terms of those
partnerships. It makes no sense for us to abdicate that responsibility
entirely. Clearly, in any activity we choose to pursue in partnership
with the States, local government, or Indian Tribes, the Federal
Government should do its best to cover the costs that relate to the
benefits that the country as a whole is to receive. Surely, the Federal
Government should do a better job than it has in many cases in being
sensitive to other governmental entities about costs they may occur.
But we should not, in my opinion, make it out of order to consider
any and all legislation that requires action by other levels of
government unless the Federal Government agrees to pay the full cost of
that action. Partnerships between the Federal, State, and local
governments and Indian tribes will be needed in the future, and it may
be appropriate in some cases for some of the costs of those
partnerships to be borne by others than the Federal Government.
Under my amendment, the cost estimates would still be done, and no
one in the Senate would enter into the debate ignorant of the full
costs. Indeed, if the full Senate felt that the cost should be paid for
entirely by the Federal Government, an amendment to this effect could
be offered. If the funding was not provided for all the costs, an
estimate of which would be required under the amendment, the full
Senate could vote the measure down after actual debate. A measure that
a committee determined to be needed to serve a compelling national
interest, however, would be assured a debate on its merits if it
reached the floor of the Senate.
Mr. President, this seems to be an imminently reasonable adjustment
to the procedures outlined in S. 1. I urge the managers to support the
amendment. I urge my colleagues to agree to its adoption. I may speak
again in reference to this prior to final vote on the issue. I did want
to put my colleagues on notice as to the import of this amendment.
I have two other amendments, Mr. President, that I have reserved the
right to offer, and I intend to offer those later this afternoon or
early tomorrow. I do not have those with me at this moment.
I yield the floor. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. KEMPTHORNE. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. KEMPTHORNE. In response, Mr. President, to the Senator from New
Mexico, I think it is necessary to point out that if at any point
during this process, there truly is a compelling argument, that the
committee, the chairman of that committee, may come to the floor and
seek a waiver of this process of S. 1, and need not go through the
remaining steps of that process.
But the idea, as I understand the proposed amendment, is to say that
the committee itself could exercise the jurisdiction of the full
Senate, which I do not think is appropriate and is really a real short
circuit of what we are trying to do here with this process.
Earlier today we heard from the Senator from Nevada and the Senator
from North Dakota on another issue, but they were saying that with this
particular Federal mandate that has been put into place a year or two
ago that there may be merit to this unfunded Federal mandate, but it
would have been so nice to have known all the implications and the
costs before this unfunded Federal mandate was implemented. What they
were describing is how nice it would have been to have S. 1 in place
before that particular mandate had been imposed.
So, again, I think that S. 1 provides the process and rather than
allowing the committee to have that sort of jurisdiction to say that
because there is a compelling interest here we need not comply is not
the route that we should go. If that is the case, if there truly is a
compelling reason, then they can seek that waiver immediately.
Mr. BINGAMAN. Mr. President, could I just respond to the concern that
the Senator from Idaho has raised.
The PRESIDING OFFICER. The Senator from New Mexico.
Mr. BINGAMAN. Mr. President, by my amendment by its language I am not
exempting any piece of legislation from the requirements of cost
estimates or reports from the CBO. What I am saying is that once those
cost estimates and reports are obtained by the appropriate committee,
if that committee determines that there is compelling national interest
that needs to be considered here, then it has the right to say that in
its report and to have the legislation considered on its merits on the
Senate floor. And it does not have to get past any procedural hurdle
that this proposed legislation would impose in terms of language that
says it is out of order to consider the proposed bill.
In my opinion, it is not wise for us to be writing legislation
stating it is out of order to consider any and all Federal legislation
where the Federal Government fails to pay the full cost of implementing
the legislation. There are too many examples in our Nation's history
where it has been appropriate for the
[[Page S1339]] Federal Government to proceed with legislation of that
type and where there has been a well-designed partnership between the
Federal Government, State government, and local government to
accomplish a recognized national purpose.
I am trying to make it clear that where there is such a circumstance
in the view of an authorizing committee, then that authorizing
committee should have the right to have its legislation, its reported
legislation, considered on its merits without having to overcome
procedural points of order to do so.
That is the intent of my legislation. It does not exempt any reported
legislation from the requirements of reports or cost estimates by the
CBO. I do believe those are appropriate, and clearly the failure to
have those in some cases has worked a hardship on local governments, on
State governments, on Indian tribes.
I wanted to clarify what the import of my legislation is. And with
that clarification, I hope that the Senator from Idaho, and all other
Senators, can support it.
I yield the floor, Mr. President, and suggest the absence of a
quorum.
The PRESIDING OFFICER (Mr. Craig). The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. BYRD. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BYRD. Mr. President, I thank the Chair.
____________________