[Congressional Record Volume 141, Number 35 (Friday, February 24, 1995)]
[Extensions of Remarks]
[Page E429]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         CONTRACT WITH AMERICA LACKS TRUTH IN CONTRACTING CLAUSE

                                 ______


                             HON. ED PASTOR

                               of arizona

                    in the house of representatives

                       Thursday, February 23, 1995
  Mr. PASTOR. Mr. Speaker, as you, more than anybody, are aware, today 
marks the start of the second half of the Contact With America's 100-
day campaign. Even though we are 50 days into the legislative process, 
only now are the details beginning to surface of how the contract will 
impact on the lives of working people and hinder the ability of our 
Nation's cities and towns to meet the demand for local services.
  Yesterday, the Phoenix Gazette featured a preview of the difficulties 
the city of Phoenix will face if the legislative proposals contained in 
the contract are enacted into law. According to the Phoenix's city 
manager, the program cutbacks called for under the contract will reduce 
the city's finances by $10 to $20 million. The budget items at risk in 
the city include funding for mass transit, job training, meal programs 
for the elderly, and emergency utility bill assistance.
  Mr. Speaker, what the Contract With America lacks is a ``truth in 
contracting'' clause. The contract is being billed as a program that 
will get the Government off the backs of the people. What communities 
like the city of Phoenix are beginning to discover is that it will 
force local governments to abandon the people they seek to serve.
  I commend my colleagues to read the Phoenix Gazette article.
               [From the Phoenix Gazette, Feb. 22, 1995]

 GOP Contract Clouds City's Finances--$20 Million at Stake for Phoenix 
                     When Federal Cuts Are Enacted

                           (By Russ Hemphill)

       In recent years, Phoenix has survived a slumping economy, 
     layoffs and cutbacks.
       But the Republican Congress' Contract with America could be 
     one of the city's biggest challenges yet, officials said 
     Tuesday as they began work on next year's estimated $1.27 
     billion municipal budget.
       ``There really is an extraordinary cloud over us,'' City 
     Manager Frank Fairbanks said, referring to potential cuts in 
     federal funding.
       Fairbanks said ``even a conservative guess'' would peg 
     federal cuts of Phoenix funds at $10 million to $20 million.
       ``It's not a question of if they cut, it's a question of 
     how much they cut and where they cut,'' Vice Mayor Craig 
     Tribken said.
       ``Actually this year's city budget is much improved,'' 
     Fairbanks said. ``If we didn't have some other situations, we 
     would be in a very strong position . . . to respond to some 
     of the community service needs.''
       Fairbanks said before potential federal cuts are 
     considered, the City Council will have an estimated $4.7 
     million for favored projects.
       But Phoenix officials estimate at least $20 million to $52 
     million of the city's $99 million in annual federal funding 
     is at risk.
       The highest-risk funding, they said, include $8.4 million 
     to $8.9 million for mass transit, job training and human 
     service grants that include meals centers for the elderly and 
     emergency utility bill assistance.
       Medium-risk funding includes $11.9 million to $42.8 million 
     for programs that include public housing assistance and 
     community development block grants.
       President Clinton and Congress have made ``strong 
     declarations that the budget needs to be cut,'' Fairbanks 
     said. His administration understands that, but any 
     significant federal cuts in funding will mean a substantial 
     cut in services to the community,'' he said.
       Councilman Sal DeCiccio said the city should accept the 
     federal cuts without complaint. ``The bottom line is the 
     federal government is spending money it doesn't have,'' 
     DeCiccio said.
       ``The United States of America is having some problems 
     right now and we all have to chip in,'' he said.
       Fairbanks urged the council to use restraint when 
     committing money to new programs, in anticipation of federal 
     cuts.
       ``Together, we must prepare for that situation,'' he said.
       Complicating the council's job is timing.
       The city will wrap up its budget this summer for the 1995-
     96 fiscal year. However, some of the federal budget cuts 
     won't be known until September, city officials said.
       ``The challenge of this is, you not only don't know the 
     amount, you also don't know'' which program will be cut, 
     Fairbanks said.
     

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