Mr. President, first, let me acknowledge the work of Chairman Cochran, Senator Shelby, and the Appropriations Committee in crafting this bill. I would also like to commend Dr. Coburn, Senator McCain,…
Mr. President, first, let me acknowledge the work of Chairman Cochran, Senator Shelby, and the Appropriations Committee in crafting this bill.
I would also like to commend Dr. Coburn, Senator McCain, Senator Ensign, and so many a number of my colleagues who have been out on the floor discussing the need for fiscal restraint.
As much good as there is in this bill, and it is mostly good, I will be voting against it.
We must stop the practice of using emergency spending designations to meet needs that can be met in the normal budget process.
This supplemental has some important provisions in it related to the war on terror and the Hurricane Katrina recovery.
For example, in relation to the war on terror, $10.2 billion is allocated for the Department of Defense's military personnel; $39 billion is allocated for operation and maintenance accounts in support of Operation Iraqi Freedom and Operation Enduring Freedom; $15 billion for procurement for various accounts; and $8 billion for various other defense-related expenses.
Other war related expenditures: $82 million for the FBI operations in Iraq and Afghanistan, $5 million for the DEA's Intelligence Program, and $4 million for ATF's costs in Iraq.
These are all important programs that should be funded to help fight terrorists abroad.
The bill provides needed funds for Hurricane Katrina.
It provides $2 billion for border security, fully offset, which was included in Senator Gregg's amendment.
That being said, there are a number of items in this bill that do not belong in an emergency supplemental appropriations bill.
Many of these are very important projects that have merit.
Many of these programs are worthy of Federal funding, and, when the regular appropriations season gets underway, I will work to see if there is a way we can fund them.
But the question before us today is not whether they have merit because undoubtably most do.
The question is not even whether they should receive Federal funding.
Here is the question we must ask with respect to each of the needs that are being funded in this bill: Are they emergencies?
The Senate version of the appropriations supplemental bill is $106.49 billion, over $14 billion more than the President's request of $92.22 billion.
Because these are designated as ``emergency funds,'' they are not factored into the budget.
As far as Washington is concerned, they ``don't count.''
But they do count.
There is no magic pot of money that can be tapped for emergency needs.
This is straight deficit spending.
There are times when emergency spending is justified, but if we abuse it, we might as well not even have a budget.
What is emergency spending?
The emergency appropriations process is set up to be an exception to the normal appropriations cycle so that money can be spent for unexpected occurrences that come up throughout the year, such as additional war costs or unexpected disasters.
This money is not factored into the regular budget.
The other body exercised fiscal restraint when they took up the supplemental bill and actually managed to bring the bill's top line number down from the Presidents's request to $91.95 billion.
However, during the Senate markup, the bill expanded rapidly.
According to the National Journal, money was added at a rate of more than $80 million per minute during the 2-hour markup.
Of course, it is not important how fast the money was added or how much is in the bill.
The only things that matter are:
Are these meritorious programs?
Are they Federal responsibilities?
Are they emergencies?
Senator Gregg, a distinguished member of the Appropriations Committee and my chairman on the Budget Committee, wrote a piece in the Wall Street Journal on April 18 entitled ``The Safety Valve Has Become a Fire Hose.''
The piece gives an excellent explanation of the problem with abusing the emergency spending process.
While Senator Gregg and I disagree with regard to 2-year budgeting, we have no disagreement on the proposal he outlines in his article, which is 1-year budgeting, which means, let's live under the budget we have now and have a sequester if we exceed it.
In the piece, Senator Gregg states:
there are two sets of books, and [only] one is subject to
the budget controls.
Adding superfluous spending to the emergency supplemental is a way to cheat the system and get around having to actually pay for the money we spend.
Here are a few of the most egregious provisions in the bill:
First, some of the funds in this bill are spent as far out as fiscal year 2010 and beyond.
Money being spent 5 years from now is not an emergency, and can be allocated and paid for through the regular budget process each year.
If we need money to start these projects, we can give money for the first year. But all other money should be subject to the oversight of an authorizing committee and the regular budget process.
Secondly, $594 million allocated for the Federal Highway Administration to go to projects on ``the current FHWA ER backlog table,'' which lists storms back to 1999.
Our budget specifically outlines the criteria for emergency spending. It is as follows:
(A) necessary, essential, or vital (not merely useful or
beneficial);
(B) sudden, quickly coming into being, and not building up
over time;
(C) an urgent, pressing, and compelling need requiring
immediate action;
(D) subject to paragraph (2), unforeseen, unpredictable,
and unanticipated; and
(E) not permanent, temporary in nature.
If funds are in fact needed to meet needs from a hurricane in 1999 or an ice storm in 2001, that should have been reasonably foreseen in 2005, when we were drawing up this year's budget.
The backlogged highway repairs for these storms could have been paid for through the regular appropriations process or the $286 billion transportation bill that passed last year.
Emergency supplementals are for unanticipated costs, not costs anticipated 5 years ago.
Emergency spending should be an exception to the appropriations process--not the rule.
There are ways to pay for emergencies, and there are ways to pay for past emergencies.
The items on this chart that predate the last fiscal year are not emergencies and should not be treated as such in the appropriations process.
They should be paid for, just like the relief efforts on all other past emergencies.
According to National Taxpayers Union President John Berthoud, since 1996 the Federal Government has spent over $450 billion under the ``emergency'' designation--an extra $1,500 for every person in America.
Nearly all of our 50 States maintain emergency, contingency, reserve, or ``rainy day'' funds to help cover unanticipated spending needs. This would not only help to smooth out spikes in deficit spending but also help to prevent politicians from taking advantage of urgent situations to grow other Government programs.
We need to better prepare for these type expenses, like our States do.
The President in the Statement of Administration Policy on this bill drew a clear line in the sand. Let me read from the SAP:
However, the Senate reported bill substantially exceeds the
President's request, primarily for items that are unrelated
to the GWOT and hurricane response. The Administration is
seriously concerned with the overall funding level and the
numerous unrequested items included in the Senate bill that
are unrelated to the war or emergency hurricane relief needs.
The final version of the legislation must remain focused on
addressing urgent national priorities while maintaining
fiscal discipline.
Accordingly, if the President is ultimately presented a
bill that provides more than $92.2 billion, exclusive of
funding for the President's plan to address pandemic
influenza, he will veto the bill.
The statement could not be clearer.
The day after he sent up the SAP, I sent a letter to the President, which was signed by 35 other Senators, committing to sustain any veto of this bill which violates the principles outlined in the SAP.
I have every confidence that our congressional leadership and our President, and their ability, working with the distinguished chairman of the Appropriations Committee, can find a way to make a good bill fit within the numbers outlined by the President.
This supplemental debate highlights a larger issue.
We need budget process reform.
We need a line-item veto. Senator Frist's bill, S. 2381, Provides that rescissions packages submitted by the President shall be treated with fast-track authority. But this bill is just the beginning.
We need to reform Congressional Budget Office scoring in the following ways:
Dynamic scoring. Senator Ensign's bill, S. 287, addresses this issue. Changes in tax law will be scored to take into account real-life effects on the economy.
Tax/spending parity. CBO scores should treat tax expirations and spending expirations the same.
Long-term scoring. We should require CBO scores to have more detailed estimates for long-term costs of authorizations and direct spending.
Database of authorizations. We should require CBO to produce a database with a comprehensive catalog of all authorized spending, user- friendly, searchable and sortable by expiration date and category, and total authorized amounts, appropriated amounts. Database should be available online, searchable, sortable, and provide overall total amounts.
We also ought to move to a 2-year budget.
Senator Domenici has been spearheading this issue. His bill, S. 877, is an excellent bill. Under his bill, all budgeting and appropriating occurs in first year of a Congress. The second session focuses on oversight.
Database for Federal grantees. We should require the creation of a database of Federal grantees so taxpayers can log on and find out who is spending their money and how.
Government shutdown protection. This provision would provide that if appropriations bills are not enacted by the beginning of the fiscal year, programs continue at previous year's level.
Spending firewall. We should create four firewalled categories of Federal spending: defense, international, domestic, and homeland, which would be binding and in the budget. This would ensure that security needs would be met and could not be raided during the appropriations process to pay for social spending.
Pay-go for emergency spending. Automatic across-the-board reduction in spending for emergencies. Provide that emergency spending automatically triggers an across-the-board rescission in all spending. Senator Gregg mentioned a program like this in his Wall Street Journal piece.
Mutiyear caps. We should provide that 302(a) discretionary caps carry over for the life of a budget resolution, including the ability for the Appropriations Committee to issue 302(b) suballocations. Currently, if we have no budget, we have a top-line discretionary cap but no way to enforce it. We should provide a mechanism for the Appropriations chairman to issue suballocations in the event that a budget is not passed.
Commission on Accountability and Review of Federal Agencies. Senator Brownback's bill, S. 1155, takes the concept of BRAC and applies it to wasteful domestic spending programs.
Efficencies. We should allow up to 2 percent of any Department to be transferred to pay down the national debt if efficiencies are found. The current system requires bureaucrats to be inefficient. We give them a big pot of money and say: You must spend this. We should encourage, not discourage, frugality.
Entitlement commission. We should provide for a commission to review entitlements, provide recommendations for reform, and provide fast- track consideration for reform proposals.
Earmark reform. Finally, we need to finish the process we started on the lobbying reform package, which is earmark reform. Senators McCain and Lott have led on this important issue.
I look forward to consideration of budget process reform later this year.