[House Report 111-565]
[From the U.S. Government Publishing Office]


                                                 Union Calendar No. 325
111th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                111-565
_______________________________________________________________________







                              R E P O R T

                                 on the

 
                  SUBALLOCATION OF BUDGET ALLOCATIONS

                          FOR FISCAL YEAR 2011

                             together with

                             MINORITY VIEWS

                    SUBMITTED BY MR. OBEY, CHAIRMAN,

                      COMMITTEE ON APPROPRIATIONS




 July 26, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                               ________



                     U.S. GOVERNMENT PRINTING OFFICE

89-006                      WASHINGTON : 2010           SBDV 2011-1



                      COMMITTEE ON APPROPRIATIONS
                   DAVID R. OBEY, Wisconsin, Chairman

NORMAN D. DICKS, Washington          JERRY LEWIS, California
ALAN B. MOLLOHAN, West Virginia      C. W. BILL YOUNG, Florida
MARCY KAPTUR, Ohio                   HAROLD ROGERS, Kentucky
PETER J. VISCLOSKY, Indiana          FRANK R. WOLF, Virginia
NITA M. LOWEY, New York              JACK KINGSTON, Georgia
JOSE E. SERRANO, New York            RODNEY P. FRELINGHUYSEN, New   
ROSA L. DeLAURO, Connecticut             Jersey
JAMES P. MORAN, Virginia             TODD TIAHRT, Kansas
JOHN W. OLVER, Massachusetts         ZACH WAMP, Tennessee
ED PASTOR, Arizona                   TOM LATHAM, Iowa
DAVID E. PRICE, North Carolina       ROBERT B. ADERHOLT, Alabama
CHET EDWARDS, Texas                  JO ANN EMERSON, Missouri
PATRICK J. KENNEDY, Rhode Island     KAY GRANGER, Texas
MAURICE D. HINCHEY, New York         MICHAEL K. SIMPSON, Idaho
LUCILLE ROYBAL-ALLARD, California    JOHN ABNEY CULBERSON, Texas
SAM FARR, California                 MARK STEVEN KIRK, Illinois
JESSE L. JACKSON, Jr., Illinois      ANDER CRENSHAW, Florida
CAROLYN C. KILPATRICK, Michigan      DENNIS R. REHBERG, Montana
ALLEN BOYD, Florida                  JOHN R. CARTER, Texas
CHAKA FATTAH, Pennsylvania           RODNEY ALEXANDER, Louisiana
STEVEN R. ROTHMAN, New Jersey        KEN CALVERT, California
SANFORD D. BISHOP, Jr., Georgia      JO BONNER, Alabama
MARION BERRY, Arkansas               STEVEN C. LaTOURETTE, Ohio
BARBARA LEE, California              TOM COLE, Oklahoma
ADAM SCHIFF, California
MICHAEL HONDA, California
BETTY McCOLLUM, Minnesota
STEVE ISRAEL, New York
TIM RYAN, Ohio
C.A. ``DUTCH'' RUPPERSBERGER, 
    Maryland
BEN CHANDLER, Kentucky
DEBBIE WASSERMAN SCHULTZ, Florida
CIRO RODRIGUEZ, Texas
LINCOLN DAVIS, Tennessee
JOHN T. SALAZAR, Colorado
PATRICK J. MURPHY, Pennsylvania

                Beverly Pheto, Clerk and Staff Director

                                  (ii)





                          LETTER OF SUBMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Appropriations,
                                     Washington, DC, July 26, 2010.
Hon. Nancy Pelosi,
The Speaker, U.S. House of Representatives,
Washington, DC.

    Dear Madam Speaker: By direction of the Committee on 
Appropriations, I submit herewith the Committee's report on the 
suballocation of budget allocations for fiscal year 2011.
    As required by section 302(b) of the Congressional Budget 
Act of 1974, this report subdivides the allocation of fiscal 
year 2011 spending authority to the House Committee on 
Appropriations contained in H. Res. 1493, providing for budget 
enforcement for fiscal year 2011.
            Sincerely,
                                             David R. Obey,
                                                          Chairman.


                                                 Union Calendar No. 325
111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-565

======================================================================




                               REPORT 

                               ON THE

                  SUBALLOCATION OF BUDGET ALLOCATIONS 

                       FOR FISCAL YEAR 2011

                                _______
                                

 July 26, 2010.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Obey, from the Committee on Appropriations, submitted the following

                                 REPORT

                             together with

                             MINORITY VIEWS

        SUBALLOCATION OF BUDGET ALLOCATIONS FOR FISCAL YEAR 2011

    The Committee on Appropriations submits the following 
report on the suballocation of budget allocations for fiscal 
year 2011 pursuant to section 302(b) of the Congressional 
Budget Act of 1974. This report is consistent with the ``Budget 
Allocations'' presented in H. Res. 1493, providing for budget 
enforcement for fiscal year 2011.



MINORITY VIEWS OF REPRESENTATIVES LEWIS, YOUNG, ROGERS, WOLF, KINGSTON, 
   FRELINGHUYSEN, TIAHRT, WAMP, LATHAM, ADERHOLT, EMERSON, GRANGER, 
    SIMPSON, CULBERSON, KIRK, CRENSHAW, REHBERG, CARTER, ALEXANDER, 
                 CALVERT, BONNER, LATOURETTE, AND COLE

    This year for the first time since the enactment of the 
1974 Congressional Budget Act, the Democrat controlled U.S. 
House of Representatives failed to consider and pass a budget. 
According to the nonpartisan Congressional Research Service, 
the House has passed a budget every year since the 
Congressional Budget Act first took effect for fiscal year 
1976. This represents a historic and unprecedented failure by 
the Democrat controlled Congress to meet a basic responsibility 
on fiscal issues: to annually adopt a spending plan that sets 
priorities for spending, revenues, deficits and debt for at 
least the next five years.
    Instead, the Democrat Majority resorted to a tortuous 
procedural sleight-of-hand to evade a direct vote in order to 
``deem'' the adoption of a one-year resolution that provided 
the Appropriations Committee a topline discretionary amount for 
FY 2011 while failing to provide a designation for overseas 
military contingencies despite promising for years that they 
would never fund the war in Iraq, Afghanistan and elsewhere as 
an emergency or outside the regular budget process. This 
unwillingness to pass a real budget was only necessary because 
of the explosion of debt and deficits unleashed by the reckless 
spending of Congressional Democrats and the President.
    At the same time, Congressional Democrats and the 
Administration have played partisan games and sought to shift 
political blame from themselves for their fiscal record. For 
example, the Administration and many Congressional Democrats 
claim President Obama inherited some $11 trillion in deficits 
over the next decade when he took office in 2009, with more 
than half of this the result of the Bush Administration and 
Republican Congresses' ``failure to pay for policies in the 
past,'' principally the 2001 and 2003 tax relief measures, 
funding for military operations overseas and the 2003 
prescription drug benefit.
    In reality, since taking office in 2009, President Obama 
and Congressional Democrats have added $2 trillion in new 
spending to the January 2009 CBO baseline that was in place 
when the President was sworn in, including $1.6 trillion in new 
discretionary outlays. Of this, the bulk almost 60 percent--was 
for discretionary outlays from Democrats' massive increase in 
regular discretionary spending, i.e., spending unrelated to 
either the stimulus or the war. The Democrat Majority has 
increased non-defense, discretionary spending by over 85 
percent from FY 2007 to 2009, and have increased this spending 
at least another 12 percent so far for FY 2010.
    Moreover, projected future deficits are not the result of 
inherited policies about which the Administration and 
Congressional Democrats are helpless to control. For example, 
the President's FY 2011 Budget proposes to continue unchanged 
almost 75 percent of the past policies they and Congressional 
Democrats claim contribute to current projected deficits and to 
do so without paying for them, including:
     Providing Alternative Minimum Tax relief, reducing 
revenues by $577 billion according to CBO.
     Extending all the 2001 and 2003 tax relief almost 
all of which is scheduled to expire at the end of 2010--except 
for certain upper-income earners and increasing the tax on 
capital gains/dividends. According to CBO's re-estimate, the 
President's Budget proposal for these policies would reduce 
revenues by $2.2 trillion and increase outlays by $311 billion 
over the next 10 years.
     Moreover, these and other expensive policy 
proposals would also be exempted from the statutory PAYGO law.
     Likewise, the President's Budget or Congressional 
Democrats could propose policies to ``pay for'' the Medicare 
Prescription drug benefit they claim added to today's future 
deficit projections. They haven't. In contrast they passed a 
health care bill that exacerbates the current crisis in 
entitlement spending by failing to control rising federal 
spending for health care and instead increases the amount of 
federal resources that will be directed to health care in the 
future, which will continue to put tremendous pressure on the 
federal budget.
    As a result, as a share of the economy, the President's 
projected 2010 deficit is 10.3 percent of Gross Domestic 
Product the largest level since World War II. If the 
President's Budget was fully implemented, annual deficits would 
never fall below $724 billion and would rise above $1 trillion 
before the end of the decade, even assuming an economy that has 
recovered and the end of military operations in Iraq and 
Afghanistan. Debt held by the public under the President's 
Budget more than doubles in over 5 years and more than triples 
over 10 years while federal borrowing would more than quadruple 
between 2010 and 2020.
    Rather than beginning to tackle this fiscal disaster by 
restraining spending, bringing down today's unsustainable 
trillion dollar deficits and restoring confidence in 
Washington, the Obey FY 2011 spending allocations adopted by 
the House Appropriations Committee on July 20, 2010 would 
continue Democrats' explosion of irresponsible spending and 
further endanger the current economic recovery as well as our 
future economic prosperity with more added deficits and debt.
    The Democrat 302(b) suballocations for this fiscal year 
would further increase discretionary spending well above the 
already bloated 2010 enacted level. Chairman Obey's allocation 
represents a $31.3 billion increase or almost 3 percent over 
the 2010 regular budget levels, excluding the $23 billion in 
new gross domestic spending Democrats added to an emergency 
troop funding bill intended to support operations in Iraq, 
Afghanistan and in the Global War Against Terror. This year's 
allocation would add an additional $108 billion in outlays to 
the current CBO March baseline deficits over the next decade if 
it is built into the base, including an additional $21 billion 
in new borrowing.
    The Republican Members of the Committee could not and 
unanimously did not support this continued across the board 
spending increase and fiscal recklessness and opposed adoption 
of Chairman Obey's proposed 302(b) suballocations.
    In contrast, the Republican Members of the Appropriations 
Committee recognize the Nation can't afford another trillion 
dollar Democrat spending spree or the massive borrowing that 
will be needed to finance it, which would lead to higher taxes 
in the future on American families, small businesses and 
entrepreneurs. CBO's recent report on the Long-Term Budget 
Outlook shows that under our current budget path, U.S. debt 
will soon reach unsustainable levels and put us in the same 
situations now faced by Greece and other European nations.
    Aside from adopting a real budget that sets priorities and 
forces tough choices, the first step to restore fiscal 
responsibility is to take immediate action to get spending 
under control. As a starting point, during the nine 
subcommittee mark ups that have taken place through July 15th, 
Committee Republicans offered at least 18 amendments to reduce 
non-security spending in the FY 2011 appropriation bills. All 
together, Republican amendments would have saved $73 billion in 
budget authority in FY 2011 and $104 billion over the next 
decade, if not more. This would have translated into $129 
billion in deficit reduction compared to the House Democrat 
allocation, including $36 billion in lower borrowing costs. 
Almost without exception, Democrat Members of the Committee 
voted against every Republican amendment to save taxpayer 
dollars. Committee Republicans would also bring a rescission 
bill to the House floor to rescind the remaining billions in 
unobligated money from the Democrats' failed 2009 stimulus 
bill.
    Additionally, Appropriation Republicans proposed an 
alternative FY 2011 spending allocation to Chairman Obey's at 
the July 20th full committee mark up that would have provided 
$1.09 trillion in regular discretionary spending, the same as 
last year's level, and put the brake on the runaway growth in 
discretionary spending by the Democrat Majority.
    This responsible spending plan would have saved the 
taxpayer $31 billion this year alone compared to the Obey 
allocation and at least $39 billion, if not more, compared to 
the President's Budget request. And by ensuring the Democrat 
spending increase was not permanently added to future budgets, 
the Republican plan saved $341 billion in budget authority over 
the next decade compared to the House Democrat allocation.
    Moreover the Republican alternative 302(b)s would have 
restored $7 billion in harmful Democrat cuts to defense and 
security spending that could impair our military readiness and 
national security. Instead it would have fully funded the 
President's Budget request for defense and security activities 
in order to provide a strong military, protect Americans at 
home and abroad as well as ensure continued medical care and 
critical assistance for our Nation's veterans. At the same time 
the allocation would still provide a sensible level of non-
security spending for key investments in areas such as 
education, medical research, and transportation among others.
    The responsible path would have been to adopt the 
Republican savings plan for FY 2011, taking a small first step 
toward reigning in out of control spending and lowering the 
deficit. Instead, every Democrat Member of the Committee voted 
against the Republican 302(b) proposal to restrain spending and 
restore unnecessary defense cuts.
    Republicans also offered an amendment to Chairman Obey's 
302(b) allocations that would have restored a $1.3 billion cut 
to the Defense subcommittee. The State-Foreign Operations bill 
that was passed out of the subcommittee on June 30th was 
already an overly generous $3.9 billion or 8 percent increase 
over last year. Inexplicably this bill received another $1.3 
billion in the Chairman's 302(b) suballocations, taken from the 
Defense subcommittee, thus bringing the State-Foreign 
Operations bill to 11 percent over the enacted 2010 level. This 
double-digit rate of increase for foreign aid and diplomatic 
operations is out of step with the fiscal challenges facing the 
country today. Unfortunately this Republican amendment to 
restore critical troop funding for equipment and military 
quality of life was opposed by every Democrat Member of the 
Committee.
    The sky-rocketing spending over the past three years by the 
Democrat majority has led to devastating levels deficits and 
debt that are stifling our nation's recovery and threaten our 
future economic prosperity. Congress must act now to control 
this spending and avoid burdening future generations with an 
unmanageable debt burden that risks our Nation's continued 
economic prosperity.

                                   Jerry Lewis.
                                   Harold Rogers.
                                   Jack Kingston.
                                   Todd Tiahrt.
                                   Tom Latham.
                                   Jo Ann Emerson.
                                   Michael K. Simpson.
                                   Mark Steven Kirk.
                                   Dennis R. Rehberg.
                                   C.W. Bill Young.
                                   Frank R. Wolf.
                                   Rodney P. Frelinghuysen.
                                   Zach Wamp.
                                   Robert B. Aderholt.
                                   Kay Granger.
                                   John Abney Culberson.
                                   Ander Crenshaw.
                                   John R. Carter.
                                   Rodney Alexander.
                                   Jo Bonner.
                                   Tom Cole.
                                   Ken Calvert.
                                   Steven C. LaTourette.
                                   
                                   
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