[Congressional Record Volume 141, Number 19 (Tuesday, January 31, 1995)]
[Extensions of Remarks]
[Pages E235-E236]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              REVENUE SHARING REESTABLISHMENT ACT OF 1995

                                 ______

                      HON. JAMES A. TRAFICANT, JR.

                                of ohio

                    in the house of representatives

                       Tuesday, January 31, 1995
  Mr. TRAFICANT. Mr. Speaker, today I introduced the Revenue Sharing 
Reestablishment Act of 1995. The bill, which will keep $5 billion in 
taxpayer money here at home, can help alleviate the budget constraints 
of our State and local governments. I urge my colleagues to cosponsor 
this important measure.
  Mr. Speaker, many of my colleagues will remember the General Revenue 
Sharing program created by the State and Local Fiscal Assistance Act of 
1972. The program was relatively simple: State and local governments 
received automatic payments from the Federal Government based on a 
formula. The money could be spent at the discretion of the governments 
and the payments were guaranteed for as long as Congress authorized 
them.
  As Congress works to lessen the overwhelming burdens it places on 
State and local governments, the Revenue Sharing Reestablishment Act of 
1995 provides a channel through which Congress can directly assist 
these struggling entities. Under my legislation, $5 billion will be 
made available annually for direct payment to State and local 
governments. Unlike the previous Revenue Sharing Program, however, the 
program will not add to the enormous Federal budget deficit. Instead, 
the program will be paid for entirely with cuts in foreign aid.
  The U.S. Government has been authorized by Congress to spend $14.8 
billion in foreign aid during fiscal year 1995. Over 30 percent of the 
money is earmarked for two countries--Israel, which will receive $3 
billion, and Egypt, which will receive $2.1 billion. There is no 
question, Mr. Speaker, that there are pressing needs throughout the 
world. We all know that famine, disease and suppression transcend all 
borders.
  We also know, Mr. Speaker, that America is experiencing horrors of 
its own: 14.3 million children live in poverty, 2.5 million Americans 
are addicted to crack, our infant mortality rate ranks 24th in the 
world, behind Singapore and Hong Kong, and, since 1960, violent crime 
has risen 500 percent and teen suicides have more than tripled.
  We are desperate, Mr. Speaker, and diverting a third of our foreign 
aid budget to American governments will allow these entities to address 
the most pressing needs and the most destructive forces in their 
communities. Where are our priorities?
  As the former Secretary of the Treasury John B. Connally stated in 
testimony before the House Ways and Means Committee in 1971:

       General revenue sharing seeks to redress some basic 
     imbalances in our Federal system of government--imbalances 
     between needs and resources, between power and 
     responsibilities, between conception and execution.

  Let's redress these imbalances, Mr. Speaker. And let's pay for it 
with money we already have. I urge my colleagues to keep our taxpayer's 
money not only in America, but in their State or community. I urge 
colleagues to cosponsor the Revenue Sharing Reestablishment Act of 
1995.

[[Page E236]]

                                H.R. --

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Revenue Sharing 
     Reestablishment Act of 1995''.

     SEC. 2. REESTABLISHMENT OF REVENUE SHARING PROGRAM.

       (a) In General.--Subject to subsections (b) and (c), the 
     Secretary of the Treasury shall make payments to States and 
     units of general local government in accordance with the 
     provisions of chapter 67 of title 31, United States Code 
     (formerly known as the ``Revenue Sharing Act''), as in effect 
     on April 6, 1986 (in this section referred to as ``chapter 
     67'').
       (b) Entitlement Period Defined.--Notwithstanding section 
     6701(a)(1) of chapter 67, for purposes of this section the 
     term ``entitlement period'' (as used in chapter 67) means 
     each fiscal year after fiscal year 1995.
       (c) Authorization of Appropriations.--Notwithstanding 
     section 6703(b) (1) and (2) of chapter 67, there are 
     authorized to be appropriated to the Secretary of the 
     Treasury to carry out this section $5,000,000,000. For 
     purposes of this section, amounts appropriated under this 
     subsection shall be treated as amounts in the Trust Fund (as 
     that term is used in chapter 67).

     SEC. 3. REDUCTION OF AMOUNTS AUTHORIZED TO BE APPROPRIATED 
                   FOR FOREIGN AID.

       The amount authorized to be appropriated for aid to foreign 
     governments for fiscal years after fiscal year 1995 is 
     reduced by $5,000,000,000.
     

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