Madam Chair, I yield myself 5 minutes. I recommend to the Committee H.R. 2112, the House Agriculture, FDA, and CFTC funding bill for fiscal year 2012, and I want to make a few remarks about it.…
Madam Chair, I yield myself 5 minutes.
I recommend to the Committee H.R. 2112, the House Agriculture, FDA, and CFTC funding bill for fiscal year 2012, and I want to make a few remarks about it.
Number one and foremost, because a lot of people are very concerned about the allocation for this bill and the funding level, I want to remind everybody of a couple of things: Number one, our national debt is now 95 percent of the GDP. It's $14 trillion. For every dollar we spend, 40 cents is borrowed.
Now, both parties have fingerprints all over this. We have all overspent. For example, for 8 years under President Bush the national debt increased $3\1/2\ trillion. Way too much. And yet, in contrast, in just 3 years President Obama has added to the national debt $5 trillion, an increase of 56 percent. And so much of this is due and owed to foreign countries, and much of it to China. Can you imagine what kind of deal Communist China, a major competitor of ours, would impose upon us if they forced us to restructure our debt? We have to do it ourselves.
Now, the House has passed the Ryan budget, which many people oppose, and I understand that. But I want to point out the President of the United States' budget failed in the Senate 97-0. Harry Reid voted against the President's budget. And in the House, the Congressional Black Caucus offered a budget that failed. The Congressional Progressive Caucus offered a budget and it failed. The Republican Study Committee offered a budget and it failed. The Democrat Caucus offered a budget and it failed. In the Senate, budget plans were offered by Mr. Toomey of Pennsylvania and Mr. Paul of Kentucky; both failed. The only budget that has passed either body is the Ryan budget, and that's what we are looking at today, those numbers.
Now, I understand there's a lot of reluctance to make some of these tough decisions. Today in America 61 million people receive monthly government checks. That's anything from welfare to Medicare to farm payments to veteran retirement to Social Security--lots of people receiving lots of money. These programs are enormously popular, and they're deeply integrated into our economic system and culture. Therefore, reforming these programs is very, very difficult. And to further complicate things, 47 percent of American households do not pay income taxes. For them the status quo is working just fine.
So addressing these things is very difficult. And if you look at the spending pattern in the last several years, it's frightening: March, 2008, $29 billion to bail out Bear Stearns; May of 2008, a $168 billion stimulus package from the Bush administration; in July of 2008, $200 billion to bail out Fannie Mae and Freddie Mac; then in November of 2008, $700 billion for TARP, or the Wall Street bailout; and then in January of 2009, $878 billion for the Obama stimulus program, which, by the way, Madam Chair, was to keep us from getting to 8 percent unemployment.
Now, we're hovering between 9 and 10 percent, and I don't need to remind you but this is the 1-year anniversary of the ``summer of recovery.'' There has not been any recovery. We're still looking for those jobs. Spending our way into prosperity does not work. If it did work, we would be having prosperous times right now.
So the Ryan budget for this bill is $17.25 billion, our reduction of $2.7 billion, approximately a 13\1/2\ percent decrease in spending, and yet, despite this, because of the mandatory spending portion of this bill, the bill actually has a net increase, mostly driven by food stamps and the school lunch program, which have gone up about $7 billion between the two of them. We still have a net increase in this bill.
Now, there's going to be a lot of discussion on lots of different accounts, and one of them is the WIC account, the Women, Infants, and Children account, something that I'm very concerned about, something that all of our committee has always supported on a bipartisan basis. But last year, there was some money taken out of it, $562
million, to settle a lawsuit which had nothing to do with school nutrition. A lot of the critics are going to be saying WIC has never been cut. Last year, the Obama administration cut WIC $562 million.
Madam Chair, I yield myself 2 additional minutes.
USDA numbers show that WIC participation has dropped 300,000 from February 2010 to February 2011, yet we are still funding it at 8.7 million people. We do not intend for anybody to fall through the cracks. If there is a shortage, there are three discretionary accounts that we can draw upon: a contingency fund of $125 million; a carryover fund, which is in excess of $350 million; and the Secretary's interchange authority, which is $210 million.
There are a lot of things in WIC we can do to improve to make sure that children don't fall through the cracks. Right now, for example, 49 percent of the kids in America participate in WIC. Do we really believe 49 percent are impoverished? Perhaps it's oversubscribed. Maybe we can work with the WIC folks on that.
We had a very healthy debate about WIC overhead, and the USDA has given us conflicting numbers on that. We're planning to meet with the USDA and find out what the real story is. I understand there may be amendments to say let's all agree what an overhead limit should be for WIC and then not spend money on overhead for that.
We are concerned about these things, but I want to close with this. Today, in America, a child under 5 years old is eligible for 12 Federal programs. After that age, he or she is eligible for 9 Federal feeding programs. At 65, you're eligible for 5 different Federal feeding programs. We want to make sure no one falls through the cracks and no one goes hungry, yet at the same time, is it possible that some folks are eligible for not just three meals a day but maybe four and five?
And can we enter into that discussion without a lot of finger- pointing and a lot of emotion? Can we also talk about the fraud and the misuse and the administrative costs without a lot of screaming and hollering? I think we can. I look forward to that debate, and I recommend passage of this bill.
I. 14 percent down.
Reflects the House Rep/Ryan budget which reflects our attempt to deal with the national debt.
A. I don't need to lecture anyone on the national debt but I need to remind all of us on a few facts:
1. At $14T the national debt is 95 percent GDP.
2. For every dollar we spend $.40 is borrowed.
3. While both parties have been responsible for this the spending by this administration has been tremendous. For example, the national debt under President Bush increased $3.5 trillion in 8 years. Way too much! In contrast, however President Obama has increased it by $5T in 3 years. That's 56 percent.
4. Much of this almost half is due to foreign countries, China being a high leader.
If we don't address our debtor crisis eventually our creditors will. With a communist country as a major competitor can you imagine what China could impose on us? It's nothing I want my children and future generations to deal with. We have to do it ourselves.
B. Let me continue with the Ryan budget we hear non stop changes from its critics that it's too harsh but where is their alternative?
1. The Potus has been all but absent. In fact his own budget was rejected by the Harry Reid Democrat led Senate 97-0.
2. Other proposals have been furled as well:
a. In the House:
Congressional Black Caucus.
H. Amdt. 256 to H. Con. Res. 34.
Failed by recorded vote: 103-303.
Congressional Progressive Caucus.
H. Amdt. 257 to H. Con. Res. 34.
Failed by recorded vote: 77-347.
Republican Study Committee.
H. Amdt. 258 to H. Con. Res. 34.
Failed by recorded vote: 119-136.
Democratic Caucus:
H. Amdt. 259 to H. Con. Res. 34.
Failed by recorded vote: 166-259.
b. In the Senate:
Toomey's plan to balance the budget in 9 years:
Failed 42-55.
Rand Paul's plan:
Failed 7-90.
3. Having failed to pass a budget in either the House or Senate, it seems the POTUS and Harry Reid have given up. That's correct there no ongoing negotiations, conferences or hearings. They have totally abandoned their duty and obligations.
C. One can understand cowardice when we look at political realties.
1. Today in America 61 million people receive monthly government checks. That's anything from welfare to Medicare, to farm payments, veteran retirement and social security. Lots of people receive lots of money.
2. These programs are enormously popular and deeply integrated into our economic system and culture. Reforming these programs is at best politically difficult even if both parties dealt in good faith and earnestness.
3. To further complicate the situation 47 percent of American households did not pay income taxes. For them the status quo is just fine.
i. According to the tax policy center.
D. Continuing our spending path has not created prosperity. Think about the big ticket items in the last few years. March '08 $29 billion to bailour Bear Sterns, May '08 $168 billion for the Bush Stimulus Package, July '08 $200 billion for the Fannie May/Freddie Mac bailout, Nov '08 $700 Billion TARP/Wall Street Bailout. Jan. '09 $878 billion for the Obama Stimulus bill which by the way was to keep unemployment below 8 percent but it has bounced between 9-10 percent ever since.
Real growth comes from less government, less job killing regulations, a tax structure that is simpler, clean and fair.
E. One last word on the Ryan budget. Despite the spending reduction in discretionary accounts be of entitlements, food stamps and school lunch there is a net increase in spending! That's right at $17.25 billion, a reduction of $2.7 billion below FY2011 or 14 percent discretionary, the mandatory spending has still increased from $105 billion to $108.3 billion, resulting in an overall increase of 283 million! Food stamps have increased $5.6 and school lunch $1.5. Thus one more time underscoring the need for long term entitlement reform.
II. Our bill attempts to move us in this direction. Mr. Farr and I have had 11 hearings. These were long with several rounds of questions. We don't agree on all issues but we found much common ground and where we disagree no one was shut out of the process.
III. I will now go through some specific accounts.
A. Research is funded at $2.2 billion. Almost half goes to Agriculture Research Service at $993 million. This allows ARS to focus on high priority items such as food defense and food safety.
1. It also includes vital pest and disease research such problems with the:
Brown Marmorated Stink Bug.
Commerants.
Cotton Pests.
Sudden Oak Death.
Equine Disease.
2. Finally, I would like to point out that the bill assumes ARS will close 10 facilities, as proposed in the budget, and provides USDA with the authority to transfer those facilities to a land-grant or other agricultural college or university that agrees to continue agricultural related research at the facility for a minimum of 25 years.
One billion dollars on this account goes to the National Institute of Food and Agriculture (NIFA) and gives level funding for land-grant university research.
B. Farm Programs are funded at $1.7 billion discretionary and $18.3 in mandatory or traditional as Ag programs specified in the five year authorized farm bill.
1. These programs are the target of much of the criticism and at least one awkward int'l into agreement w/ the Brazilian government over cotton. Mr. Fluke offered an amendment to affect this and committee act was passed; however if it is out of order and will be struck. Nonetheless our AS committees are planning to address it.
2. Also in this section of the Bill is Farm Service Agency funding at a level of $1.46. Modernization of FSA technology systems remains a committee priority.
The MIDAS, Modernize and Innovate the Delivery of Agricultural Systems, request was $96 million on top of $49.5 million from last year but USDA had reprogrammed $23 million for salaries. The heart of the MIDAS initiative is to improve the delivery of FSA farm program benefits and services through the re-engineering of farm programs business processes and the adoption of enhanced and modernized information technology.
3. Many members requested funding for the FSA Grassroots Source Water Protection program and the bill includes $3.6 million for this program.
Agricultural Credit loan levels are at $4.7 billion which is $95.8 million below the fiscal year 2011 level and the same as the fiscal year 2012 request.
C. The majority of the $910 million in funds for the Marketing and Regulatory Programs is slated in the Animal and Plant Health Inspection Service-Salaries and Expense account at $790 million, which is $73.3 million below the
fiscal year 2011 level. These funds will allow the agency to continue to control and eradicate plant and animal pests and diseases. The bill includes language that allows APHIS to access emergency funding to address pest and disease outbreaks.
In addition to other related programs at USDA's Animal and Plant Health Inspection Serves, this Bill provides $147 million for Specialty Crop Pests to control or eradicate invasive pests and diseases, especially for those pests and disease in California, and the west. Although this funding level is below the President's Request, this Program is funded at $4.4 million above the level spent in the fiscal year 2010. Within the program, we have also supported language from members regarding Sudden Oak Death.
D. Conservation Programs are funded at $787 million of which $770 million is for NRCS's Conservation Operations, which is $99 million below the fiscal year 2011 level. This allows NRCS to maintain its core conservation mission and will drive efficiencies to create more farmer- friendly programs.
The Watershed Rehabilitation Program is funded at $15 million, which is $3 million below the fiscal year 2011 level.
In addition to discretionary appropriations, USDA will provide $5.8 billion to farmers and ranchers through its mandatory conservation programs in fiscal year 2012.
(In the farm bill, the Agriculture Committee will review these especially the Conservation Reserve Program which pays farmers not to plant.)
E. More than $2 billion is provided in the bill for Rural Development Programs including section 502 low income housing loan level of $24.845 billion. The President's budget proposed a loan level for direct loans for $211 million and the bill provides for $845 million for this program that serves very low-income rural Americans.
Rural Water and Waste--$730 million is provided for loans, which is $242 million below the fiscal year 2011 level. $430 million is provided for grants, which is $28 million below the fiscal year 2011 level. We received many requests from Members for funding for the Circuit Rider program, and the bill provides $14 million for this purpose.
Electric and Telecommunications Program level is at $7.3 billion in the bill, which is on par with historical levels. The bill denies the budget request to limit the use of electric loans to renewable energy and retrofitting, and requests a report on baseload generation needs.
F. Food Safety and Inspection--$973 million--a funding level that will allow FSIS to maintain meat, poultry, and egg products inspection, as well as to expand poultry inspection system that results in a safe and more efficient poultry inspection regime that will result in a safer food supply.
III. Our committee had 2 good debates on the funding of Women, Infants, and Children (WIC) Nutrition programs.
Our mark attempts to address the aggressive marketing growth of WIC w/a funding level of $5.9 billion. Or 1.2 below FY 2011, which was 7,128,424,000.
A. We will hear from many that this hurts the nations most vulnerable but lets look at some fact.
1. Many critics act like WIC has never been cut but last year in order to pay for a completely unreduced program--a legal settlement on a farm loan dispute call Pigford the Democrats cut WIC by $562 m.
2. The latest data from the USDA shows a drop of 300,000 participants between fiscal year 2010 and fiscal year 2011. However; our level still funds at the higher number of 8.7 m people which is the projection for
I yield 4 minutes to the distinguished chairman of the committee, the gentleman from Kentucky (Mr. Rogers).
Madam Chair, I yield 3 minutes to the gentleman from Nebraska (Mr. Fortenberry).
Madam Chair, I yield 3 minutes to the distinguished vice chair of the Republican Conference, Mrs. McMorris Rodgers of Washington.
I yield 1 minute to the gentleman from Arkansas (Mr. Crawford).
Madam Chair, may I inquire as to the time remaining.
I yield 2 minutes to the gentlewoman from South Dakota (Mrs. Noem).
I reserve the balance of my time.
I yield myself such time as I may consume.
Madam Chair, I wanted to respond to the discussion of the CFTC. It's very interesting to me that there are those Members of Congress who believe that bureaucrats control the price of oil. While bureaucrats certainly do have influence on the price of oil, if you're really concerned about the price of oil, you need to drill for it. It's pretty simple--increase the supply.
Folks forget that Alaska is twice the size of Texas. The Arctic Wildlife Reserve area is the size of South Carolina. The proposed exploration area is 2,000 acres. It's about the size of National Airport here. We're talking about a business card on a basketball court. Yet you hear over and over again from people--who, incidentally, do drive fossil fueled cars--that we in America are inept and unable to drill for oil responsibly. If you want to decrease the price, you've got to increase the supply, and there is no better way than to drill your own oil.
Think about the absurdity of President Obama going down to Brazil and telling them, We want you to drill offshore. Apparently, the Brazilians are technologically more advanced than we are, and the President has much more of a comfort level with the people of Brazil than he apparently has with the people from Louisiana or from Texas or from Florida. He goes down to Brazil and says, Go ahead and drill offshore. We're going to lend you money, and by the way, we want to be your best customer.
Now, he never mentioned anything about the CFTC.
Let me tell you what Democrat Commissioner Michael Dunn said. This was, by the way, on January 1, 2011: ``To date, CFTC staff has been unable to find any reliable economic analysis to support the contention that excessive speculation is affecting the markets we regulate or that position limits will prevent excessive speculation.''
What I suggest to you, Madam Chair, is that the discussion of the CFTC and oil speculators is a red herring. The real issue that the Democrats have failed to address is that of drilling for oil in order to increase supply.
I reserve the balance of my time.
I yield myself such time as I may consume.
I want to go back over this food situation. I and the gentleman from California, the ranking member, have had 11 hearings on this. We've had 11 hearings on the Agriculture bill, not on feeding programs specifically.
I want to again remind the Chair that this bill represents a net increase in funding, which is largely driven by the increase of $5.6 billion in food stamps and in the School Lunch Program of $1.5 billion. I also want to remind Members of the many Federal feeding programs that we have. For a 3-year-old child, there are 12 different feeding programs. For a 10-year-old child, there are nine different programs. For a 35-year-old, there are seven programs, and for a 65-year-old, there are five programs that people can apply for.
It is not the intention of this committee to let anyone fall through the cracks. The numbers that we have funded, for example, in WIC, contemplate what we believe is going to be the participation. Should that participation fluctuate, there are three contingency accounts that the USDA can access. It would certainly be our intention to have those accounts accessed before anyone fell through the cracks.
Now, I share in the frustration of the stimulus program that was supposed to create last year's summer of recovery. I'm sorry it did not work, because I would like to be out celebrating with the President. Yet the stimulus program, which was supposed to keep unemployment below 8 percent, actually increased unemployment to the level of 10 percent. Now it's hovering a little bit above 9 percent.
The best thing in the world would be to have prosperity, and I believe that we can get there. One way we should get there is by drilling our own oil because, if you want to keep food prices down, you've got to keep the cost of distribution down, which would be something, I'd hope, that we could work together on.
I also think we need fundamental tax reform because I know one of the things that some on the committee have talked about are some of the tax loopholes taken advantage of by certain companies. I agree with them. That's why I support the Fair Tax, which is a consumption tax. It would actually give a tax credit to the poor so that it does not disproportionately hurt them, but it would close all the loopholes. That would be something else that we could do that would create jobs in America.
Finally, the excessive bureaucratic regulations that our farmers and small businesses have to put up with is killing job creation. If we want to do something to help people get off dependency and get to independency, we need to decrease the size of government. This bill moves us in that direction.
I reserve the balance of my time.
Madam Chair, I yield 3 minutes to the distinguished gentlewoman from Wyoming (Mrs. Lummis), a great member of the committee.
Will my friend yield a minute?
I just wanted to say that we actually have had one more speaker show up. It sounds like you are closing. You might want to reserve some time.
I yield 3 minutes to the gentleman from Indiana (Mr. Burton).
I yield the gentleman an additional 30 seconds.
I have no further requests for time, I move passage of the bill, and I yield back the balance of my time.
I move to strike the last word.
First of all, I think it would be real interesting, my friend from Massachusetts, and I mentioned this to you yesterday. I think we would both enjoy to see what the results would be if we googled our hearing and put in the word ``hunger'' and put in the word ``obesity,'' which one showed up the most; and I believe you are going to find we talked far more about obesity than we did about hunger.
The question that I have is, on the hunger, there are so many food programs out there and this bill does have a $5.6 billion increase in food stamps and $1.5 billion increase in school lunch, that maybe you and I together could focus on where this hunger is because it could be that there's maybe an ignorance issue more than a hunger issue, ignorance in that people do not know how to get these programs that are out there.
Let me yield to my friend from Massachusetts.
Then let me reclaim the time, because I'm trying to have an adult conversation, and I clarified what ``ignorant'' means, and if you don't know about a program, then you're ignorant about its existence.
Let me reclaim the time, because I wanted to continue the discussion. One of the things that perhaps we could do a better job at is not only explaining to people where these programs are but also coordinating the actual program.
Now, the previous speaker said that some children--and I can't quote her exactly--might be getting four or five meals a day. I think it would be good in a time of fiscal restraint that we talk about, well, can we coordinate better.
Let me yield to my friend.
And that is substantial. But let me say this, the numbers that we're operating on, 2010, there were 9.2 million participants. This year, it's 8.9. Next year, the projection is less than that because 450,000 people less are on it. The base number on the bill would be about 8.3 million; but with the contingency funds, it could go over 9 million people. And as I have said to my friend from Massachusetts
before, we want to make sure no one falls through the cracks.
But I'm looking at these numbers, too, and I know that the group that has been cited many times, the numbers that they're using are a different base than what we're using. So I think some of this is actually about, well, what is that level, and I'm thinking it is the 8 to 9 million.
I yield to my friend.
I agree that there is an unknown factor on the rising cost of food that we're not sure about.
Will the gentleman also agree with me, though--and we've had a very spirited debate, which I know my friend----
We don't know the percentage food prices are rising, but we do know that this budget would allow with contingencies 9 million to participate, which is above the current level.
Now, I'm hoping that the economy does turn around, but I think it's very important, though, for us to be talking about some of these things that are in the mix like solid numbers, coordination of benefits, and also sources that people can go to, because the gentleman said, Folks don't know about this program, and we want to help them out.
Let me yield to my friend from Connecticut with the hopes that when my time runs out, my friend will yield to me as well.
I thank the gentleman for yielding.
I do want to continue the discussion which we've had with our friends on the other side by pointing out something I think is very important. I have the vote from the CLAIMS Act, November 30, 2010, on which I voted ``no.'' This vote cut WIC $562 million. So far every speaker who's been on the floor voted ``yes'' to this bill. So in terms of following the rhetoric, it's very difficult.
I also want to point out we had a vote earlier this year, no, late last year, on extending the Bush tax cuts. I voted ``no.'' Did others on that side vote ``no''?
I'm glad my friend from Connecticut did.
I also want to point out we had a vote last week on the Kucinich amendment to get us out of Libya. I voted ``no'' on that. I'm not sure how you guys voted. I know my friend, Mr. McGovern, has been an absolute, very consistent critic of the money that we are spending and engagement we are having in the Middle East. And I respect his philosophy on that.
But the reason I want to point this out is because it appears that when one side tries to cut the budget, they're pushing children out the door. But when another side cuts the budget, it's okay.
The gentleman from Florida controls the time, and I recommend that he does yield to you.
I want to comment on that. But that's exactly what we're doing.
My friend from Connecticut, you know that's what we're doing.
The participation in WIC in 2010 was $9.2 million. Today it's about $8.8 million. This bill, because the level has dropped and is dropping, is at a level of $8.3 million, but can go over $9 million with the contingency. So I believe that when you cut WIC last year, you did it in good faith. I would only ask that you give us that good faith too.
Let me say my friend from Connecticut will agree, though, that if you, on your side, had not cut WIC $562 million, that money would still be there right now.
The point that I'm making, Mr. Chair, is that WIC is $562 million, not because of any Republican action, but because of the Democrat action. And you know what? I don't question anyone's motives on this side, and I admire their passion. And my friend from Connecticut is one of the most passionate persons in this body when it comes to WIC. And I respect that.
But we also have to look at some of these numbers because if they're just air-dropped into this bill, then I can certainly understand their outrage. But if we look at the long term, where WIC was 2 or 3 years ago, where it's going, and the fact that there are three contingency funds to pick up the slack on this, not to mention a number of other good programs.