Madam President, I first wish to say to the distinguished majority leader that the recent filibuster was supported by a number of Democratic Members, but most importantly it was supported by Members…
Madam President, I first wish to say to the distinguished majority leader that the recent filibuster was supported by a number of Democratic Members, but most importantly it was supported by Members who did, in fact, favor the legislation. The reason they refused to go forward with the bill is because Senator Reid--in a dictatorial manner--has announced that he intends to control amendments. You don't get an amendment unless you grovel to the majority leader.
There is no reference to the majority leader in the Constitution of the United States. He doesn't get to tell an individual Senator they can't have an amendment on a bill. He has been doing that consistently, and it is not right. We have been on this bill long enough to cast 10 or 15 votes. It is not a question of time as to why he will not allow amendments.
The reason the majority leader will not allow amendments is because he wants to protect his Members from actually being held accountable by the voters of the United States of America by having to cast votes and choose sides. That is what it is all about. It has gone on way too long. It is demeaning to this Senate, and he demeans the loyal opposition who are doing the only thing they have as a tool, which is refusing to move forward with a bill because the majority leader is going to use parliamentary maneuvers to block anybody's amendment. I wish it were not true.
I will not go quietly and allow him to come down and blame others for the problem he has caused. We could have already had this bill up for final passage. It is not a question of time. It is a question of control and domination of the Senate, and the majority leader is not entitled to do that. He is not entitled to do that, and it is not going to continue. This will be broken sooner or later.
If the majority leader wants to move important legislation, he is going to
have to agree to a process that allows duly elected representatives of various States in America to be able to at least offer an amendment.
My remarks today are to discuss the nomination of Shaun Donovan to be the Director of the Office of Management and Budget. This is a very important office.
I voted against Mr. Donovan in the Budget Committee, and I wish to take this opportunity to share with my colleagues my concerns. My concerns are not related to his character or personality or decency but his experience and qualifications to serve as the Nation's chief financial manager--the Director of the Office of Management and Budget.
Alexander Hamilton explained in Federalist 76 why the Senate was assigned a role in the confirmation process:
It would be an excellent check upon the spirit of
favoritism in the President, and would tend greatly to
prevent the appointment of unfit characters from State
prejudice, from family connection, from personal attachment,
or from a view to popularity.
The President has the right to nominate, and his nominations should be given deference, but as Hamilton made clear, when the President's nominee does not have the fitness necessary for a critical position, the Senate should not provide its consent.
The Director of the Office of Management and Budget is one of the most important positions in the entire government, entrusted to oversee our massive Federal bureaucracy and budget process during a time when the Nation is facing tremendous financial danger.
Only weeks ago the Director of the Congressional Budget Office reaffirmed in testimony before Congress that the debt of this country is on an ``unsustainable path,'' and he meant exactly that. He went on to say that America faces the ``risk of a fiscal crisis.'' He means Greece when he says ``a fiscal crisis.''
Whoever holds the job of budget director must be one of the toughest, strongest, most able, and disciplined managers in America. We ought to be looking for the very best. We need someone who already understands this massive Federal Government, the financial stresses we are under, where the problems arise, and how to manage it.
We need somebody with the capability and credibility to deal with strong-willed cabinet people who, as history shows, always want to spend more and need to be told no by the Office of Management and Budget.
Sadly, what has become clear is that the President did not choose Mr. Donovan because he met those criteria. That was not what he was looking for. Mr. Donovan does not come close to meeting those qualifications. He just does not. I enjoyed meeting with him, but I asked him questions that deal with fundamental issues everybody in Congress understands but he doesn't understand because he hasn't had experience with them. Instead, it would seem Mr. Donovan, as with the President's past Budget Directors, was chosen because he has good people skills and personality and is politically loyal and would defend the administration's goals and priorities even when the result might be unfavorable to the public's fiscal health.
We have seen this time and again in the President's Budget Office. His past Budget Directors have done more to conceal financial problems the Congressional Budget Office has told us we face than to illuminate those problems. They have steadfastly sought to avoid serious discussions about the unsustainable debt course we are on and to lay out any credible policies to fix that problem. They have been unresponsive to congressional inquiry. They make false statements about what their budget would actually do. Indeed, they have repeated--Mr. Lew did when he was Director--that our budget would pay down the debt when, in fact, there was not a single year in his 10-year budget that the deficit was less than $500 billion. They have tried to break spending caps that are agreed to by the President and are in law, and they refused to comply with legal requirements to submit a plan to prevent Medicare's insolvency--an edict the law requires him to do, and President Bush did.
The Office of Management and Budget should be one of the least political departments in government. Instead, the President has made it one of the most political. Shouldn't the American people be able to look to their Budget Director with confidence, knowing their tax dollars have been entrusted to someone with great wisdom and experience and independence? Shouldn't they be able to know their Budget Director will look the American people in the eye and tell them squarely what the true facts are we are facing today, and is someone who could lay out a plan that would actually work to fix the debt course we are on?
The President had the ability to scour the country for the most skilled, talented, disciplined, and gifted manager he could find for this office. Very few people of prominence would turn down a request from the President to fulfill that duty. A renowned manager of great financial acumen and recognized independence is what we are looking for--someone with a track record, a proven record of saving taxpayers' dollars, developing new efficiencies, taking on entrenched interest in the service of the public good, not the special interest good. They have to be capable of meeting with someone such as Paul Ryan, chairman of the House Budget Committee, to meet with members of the Budget Committee such as Senator Rob Portman who was also a former OMB Director; Senator Pat Toomey, Senator Chuck Grassley, Senator Ron Johnson, a businessman and an accountant. They know about these matters. They have been working on them. They have been negotiating and producing plans. Mr. Donovan has no knowledge of them. He cannot discuss it with them intelligently. He has no background in that. He has shown no interest in it. I suspect Mr. Donovan was stunned when he was offered this job. He certainly has not prepared himself for it. I am not criticizing him specifically as a person; I am saying this is not the kind of person we need today. There is nothing in his background to suggest he is up to the task this urgent hour requires.
More troublingly, Mr. Donovan himself has a poor record of financial management at HUD. He is the Secretary of Housing and Urban Development. During his tenure HUD has received repeated and stark criticism from his own agency's inspector general. They appoint, within these Cabinet positions, an inspector general who analyzes and acts independently to advise the Secretary and the Congress if something is wrong. Well, I would suggest what I am going to say evidences that Mr. Donovan's skill is in spending money and making investments rather than saving dollars and managing money.
His record at HUD shows he spent money illegally, violating the Antideficiency Act--a very important act. On the great financial issue of our time--our Nation's crippling debt burden--I asked Mr. Donovan at the hearing in the Budget Committee about what he would propose to fix the unsustainable debt course. Shouldn't he do that? He offered no serious ideas to get our debt under control. Clearly, he has no intention of providing the leadership needed to reverse our disastrous current debt course.
For instance, the President's most recent 10-year budget plan he submitted would break the in-law spending limits he agreed to and increase our Nation's total debt by an average of $800 billion a year. Over the next 10 years, under his budget plan, we could be expected to average deficits of $800 billion a year, almost $1 trillion. Indeed, in the 10th year, it is virtually $1 trillion.
I asked Mr. Donovan about this and he replied:
The President's . . . budget includes fully-paid for,
fiscally responsible investments that will create jobs, grow
the economy, and expand opportunity for all Americans.
That is the answer we got. I submit that is not responsible. That is not serious. He is not in touch with reality.
When Mr. Donovan was forced to admit in follow-up written questions that the President's budget plan would add $6 trillion to the public debt over the next 10 years, he called the increase ``nominal.'' It is precisely this cavalier attitude from government elites that is leading our Nation to financial catastrophe. CBO says these deficits put us on a path to a fiscal crisis. Last year we paid $220 billion in interest on our $17 billion debt. But the
Congressional Budget Office projects that interest rates are going to return to more normal levels in a few years and we continue to add more deficits every year. They project that in 10 years, interest on the debt will be $800 billion. It will pass the defense budget--interest in 1 year will pass the size of the defense budget by 2019. This is dangerous. We cannot continue on this course.
I would also share that in talking to my colleagues about their discussions with Mr. Donovan, they expressed concern that when he met with them individually, he lacked basic knowledge about the fundamentals of the Federal budget. Consider the written testimony he later provided to the committee about his specific plans for entitlement reform--mandatory spending reform. He said:
I have not . . . written any papers or given any talks or
lectures that specifically lay out a comprehensive plan for
Medicare or Social Security.
So this is the person who is supposed to coordinate the effort to rein in spending and put us on a sound path. I would say not only has he not written any papers or given any lectures, I am not aware he has given any thought at all to fixing Medicare and Social Security, two of the biggest challenges this Nation faces. I don't think he has ever expressed a serious thought about these issues.
In response to one question about Medicare data, Mr. Donovan told me the data did not exist. But the data does, in fact, exist. And his response cited the very report from which the data was found. At his hearing, Mr. Donovan could not answer fundamental questions from Senator Johnson about the Social Security trust fund. That is very important. With only 2 years left in the President's Administration, the Nation needs to have someone at OMB who can hit the ground running, who knows these issues.
I asked him about defense. I am a senior member of the Armed Services Committee. He didn't understand the F-35 program. He is not able to converse intelligently about the troop levels we are talking about having to reduce. He couldn't talk about aircraft carriers--something he has never had any experience with whatsoever. That is why he couldn't talk about it, and he has never given any thought to it.
This lack of basic knowledge and professionalism is evidenced in the inspector general reports about his tenure at Housing and Urban Development. Here, for instance, is a representative example from an IG report issued on February 19 of this year about his multifamily project refinances program. They came up with a plan that supposedly refinanced housing loans and saved money. This is what the inspector general said:
HUD did not have adequate controls to ensure that all
Section 202 refinancing resulted in economical and efficient
outcomes.
They went on to say:
Specifically, (1) HUD did not ensure that at least half the
debt service savings that resulted from refinancing were used
to benefit tenants or reduce housing assistance payments, (2)
consistent accountability for the debt service savings was
not always maintained, and (3) some refinancing were
processed for projects that had negative debt service
savings--
In other words, instead of saving money, the refinancings cost money.
--which resulted in higher debt service costs than before the
refinancing.
It goes on to say:
These deficiencies were due to HUD's lack of adequate
oversight and inconsistent nationwide policy implementation
regarding debt service savings realized from Section 202
refinancing activities. As a result, millions of dollars in
debt service savings were not properly accounted for and
available, the savings may not have been used to benefit
tenants or for the reduction of housing assistance payments,
and some refinanced projects ended up costing HUD additional
housing assistance payments because of the additional cost
for debt service.
That is not the kind of glowing review one would hope to accompany a nominee to an office who would oversee the entire Government of the United States of America.
But the problems get worse. Every year, the HUD inspector general conducts an audit to determine if HUD's financial statements are in order. When an agency's financial statements are in order, that agency is awarded an unqualified or clean audit, meaning there are no material defects in the way the agency is managing its books. For the years 2012 and 2013, under Secretary Donovan's leadership, HUD received failing grades or a qualified audit, which means material problems were found with HUD's financial statements. Twenty-four agencies undergo the audit process every year. Only two failed in 2013: HUD and DOD. And we all know DOD has never yet reached the kind of accounting the government requires in that massive agency. So HUD is the only non-DOD agency that failed last year.
Whereas DOD has historically had problems with financial statements, HUD had, prior to Mr. Donovan, received clean reports. The inspector general, in failing Mr. Donovan, noted that HUD had improper budgetary accounting and lacked proper accounting for cash management. HUD, under Mr. Donovan's watch, was also recently charged with an Antideficiency Act violation by the inspector general--a big problem, in my opinion. It is serious.
The Antideficiency Act essentially prohibits government employees or agencies from spending money that has not been appropriated by Congress. No President, no Cabinet Secretary can spend money under the Constitution that has not been appropriated for that purpose by Congress.
So according to information received from the HUD inspector general, HUD, under Mr. Donovan's watch, has at least seven instances of violating the Antideficiency Act. These violations include overobligation of personnel or payroll funds, making student loan payments in excess of the funds allowed for that purpose, and obligating funds that were no longer available, and some of these were done after clear warnings to stop it.
In one of the most recent violations, HUD paid more than $620,000 to a senior adviser to Secretary Donovan--personally his adviser, his staff--but they paid for it not from Mr. Donovan's budget for that purpose--to hire staff with--they paid for it out of the Office of Public and Indian Housing funds even though Mr. Donovan's adviser in his office was not employed in the Office of Public and Indian Housing section. This adviser's pay was required to come from the funds in the secretary's office, his budget.
The inspector general found that HUD had ignored the advice of its own legal counsel and disregarded concerns that had been previously expressed by the House Appropriations Committee on antideficiency matters at HUD.
I do not see how he could not be aware of this. This is his own adviser. His own lawyer said: You should not pay for it out of the Office of Public and Indian Housing funds. But he did it anyway.
Congress had specifically addressed HUD's salary funding for the Secretary's senior advisers--it had been a subject of House discussion, which is unusual--and previous ADA violations. According to a July 26, 2010, House of Representatives report, ``all senior advisors to the Secretary should be funded directly through the Office of the Secretary.'' Of course. In addition, a HUD appropriations attorney in the HUD staff wrote in a January 13, 2011, email that a special adviser to the Office of the Secretary would need to be paid by that office-- the Secretary's office--and not another office within HUD. Despite the direction in the House report and guidance from his own appropriations attorney, HUD paid this adviser for his services from the Office of Public and Indian Housing program.
Subsequently, in June 2012, Congress again admonished HUD for the lack of staffing data it provided and had available internally. Congress wrote:
This lack of essential information led to multiple Anti-
Deficiency Act violations in fiscal year 2011, in which HUD
hired more people than it had resources to pay. To date, HUD
has not even tried to address these problems and thus the
Committee has no faith in HUD's ability to appropriately
staff its operations.
It is a very serious criticism of the management ability of the man now put in charge of managing an entire government. It is not the kind of activity that warrants a promotion.
Finally, I have to say this. I have to mention this little matter: Mr. Donovan's membership in the Owl Club at Harvard--an item many of our Democratic colleagues found most reprehensible when Justice Alito came up for
confirmation for the Supreme Court. This is a club the late Senator Ted Kennedy, resigned from because it did not admit female members. Indeed, Harvard kicked the club off campus in 1984, but that was the very year Mr. Donovan became a member and remained so until 1987. I have heard no complaints from my colleagues about Mr. Donovan's membership in the Owl Club even after it was kicked off campus, but they howled mightily when Justice Alito was found to be a member of a similar club at Princeton.
So I would ask my colleagues, in conclusion, does this sound like the background of someone who really is the right man for the job at this time? That is my fundamental concern. I do not believe his background, skills, and record indicate he is ready for one of the toughest jobs in government.
This President, even more than most Presidents in their second term-- and they all tend to do this--is surrounding himself closer and closer with a small group of political loyalists--Secretary Lew, Secretary Johnson, Secretary Perez. So do we need another loyalist who protects him better? Wouldn't the American people and the President himself be better off with a strong, capable manager who can see through all the fog and the political falderal and make good decisions, preserving the taxpayers' resources?
We need someone who will act independently on behalf of the President and the American people, who will respect the jurisdiction of Congress and legitimate congressional powers, who will follow the law and submit a Medicare plan, as the law requires, because it is going into default. The law says if it goes into default and the Medicare trustees send a notice--and they have--the President is supposed to submit a plan to fix it. OMB is the place that has always come from. It has come from there previously. And shouldn't he tell the White House no if he is asked to do something that is improper for the financial future of America?
Well, I do not like having to oppose Mr. Donovan. He seems like a nice person. But he is the wrong man for this important job. I think he has been chosen for the wrong reasons, not for the right reasons. I will oppose his nomination. The President himself, I truly believe, and the Nation would benefit from the most capable, strong, and competent nominee the country can produce at this critical time. That's not Mr. Donovan.
I thank the Chair and yield the floor.