Mr. Speaker, I come tonight before the country to discuss the state of our Nation and to talk about a few of the things that I think that we can do to improve the state of the Nation. This hour that we will have tonight, there will be some…
Mr. Speaker, I come tonight before the country to discuss the state of our Nation and to talk about a few of the things that I think that we can do to improve the state of the Nation. This hour that we will have tonight, there will be some other members of the Blue Dog Coalition that will join me, I am sure.
Mr. Speaker, as you know, the Blue Dog Coalition is a group of 37 men and women from all over the country, Democratic Members that believe that there are certain things that we should do as a government, certain functions that we should perform to make the economic model work well, and we should try to perform those functions well, and we should be willing to pay for it.
I was very interested in the previous speaker and actually agree with what some of the previous speaker said, and I think he wound up by saying that we ought to balance the budget.
The Blue Dogs, Mr. Speaker, could not agree more that that is a very important step, and I think most Members, most folks out in the country would understand the concept or the notion of balancing the budget, whether it is our individual home budgets or whether it is our business budget, whether it is our local governments. Eventually, you have to have revenues meet expenditures, or you do not stay in business too long. Most of us understand that. Except in the Federal Government, we have a difficult time understanding it sometimes, and I think we have not done very well on that front in the last 6 years certainly.
I was also interested in some of the comments made by the previous speaker. You would have thought that the Democrats were in control of the Congress of the United States. I would remind the Speaker that the White House, the House and the Senate are all controlled by the Republican party. When it comes to doing budgets and
programs and balancing those budget and programs, that is certainly within the control of the majority party to do that.
There also was a good bit of talk about the welfare program. Mr. Speaker, the welfare program was something that this Nation worked together on back in the 1990s under a Democratic President and Republican-led Congress, worked very hard, sat down in a bipartisan way and came up with a good solution to find ways to move people off of welfare and get them into the workplace.
The previous speaker is absolutely right in that we need people in the workplace, getting paychecks, being productive, paying taxes into a society, and that way our economy works best and our lives are better.
Mr. Speaker, I want to talk about three specific issues, three broad areas, basically, where I believe this administration and this Republican-led Congress have failed us in being responsible.
Number one is they have failed to balance the budget. For 5 consecutive years now, we have had a budget that is out of balance.
Number two, they have failed to manage our Federal Government and its functions effectively and efficiently. Let me say that again. They have failed to manage the Federal Government and its functions effectively and efficiently, and I want to talk specifically about that a little more.
Thirdly, I believe that this administration and this Congress has failed to uphold the standards of honesty and accountability when it comes to perform their functions.
Now, I want to start with the second of those particular bullet points and talk about the management of the Federal Government and point out some of the things that have been going on the last 5 to 6 years.
When President Bush took office, he told us and we all knew that he came from a business world and with an MBA and with the charge that the government would be run like a business. Instead, Mr. Speaker, we have seen many of our Federal agencies managed by people with little or no experience. As a result, you find today 19 of the 23 Federal agencies are not in compliance with proper accounting standards. In other words, they cannot give a clean audit of their own actions in how and where they spent the money, the taxpayers' money that was given to them to perform their governmental function. What this means is that we cannot account for all of the government's assets and liability.
The previous speaker talked about the Department of Defense being the biggest offender; and, in actuality, the Department of Defense is the largest offender of this. Of course, the Department of Defense is one of the largest agencies in the Federal Government, the largest agency in the Federal Government, and we all know the high-profile story of the over $3 billion that was allocated, appropriated for Iraq reconstruction that nobody can account for. The Department of Defense cannot account for the over $3 billion that was appropriated for Iraq reconstruction.
The complete lack of management and accountability in our Federal agencies is unacceptable. If you had a manager that operated like that in your local government or in a business, you would replace that manager. So I think that we really should demand more of our executive agencies in terms of management and accountability as it relates to how they spend the money that is appropriated to that particular agency.
In the 1990s, Mr. Speaker, Congress and the President, again a Democratic President, a Republican-led Congress working together in a bipartisan way enacted a series of reforms for the Federal civilian workforce known as the Readmission of Government. These reforms reduced the size of the Federal Government, Mr. Speaker, by over 300,000 employees.
Let me say that again. In the 1990s, the size of the Federal Government was reduced by over 300,000 employees.
Despite this reduction, many Federal agencies improved their performance substantially; and I want to talk about one of those Federal agencies specifically, I think, which is a good example. Because, Mr. Speaker, I come from Florida, and in Florida we are accustomed to natural disasters, primarily hurricanes that start about this time of year and run all the way through the summer and into the fall. Last year, I think we had so many hurricanes that we ran out of alphabetic names and had to start back through the alphabet a second time to name all the storms. I think there has been a lot of press and a lot of publicity about the storms that we have had.
Florida has created an excellent emergency management system to deal with those storms, but we always work hand in glove with the Federal Emergency Management Agency, which is known as FEMA, and I found in my 18 years of public service in Florida that FEMA was one of the premier Federal agencies, really a professional agency that knew what its role was and knew how to get the job done probably more than any Federal agency I knew in the 1990s. It was the poster child, if you will, of a well-managed Federal agency. FEMA's structure was transformed, and three national response teams were created to quickly react to any national emergency. I guess in the 1990s, FEMA's performance was more notable for the newspaper stories that weren't written about it. Anytime you find an agency that is doing a good job, doing what it is supposed to be doing, then you do not hear much about it. Disaster victims and State officials alike, including myself, gave FEMA grade A marks, unanimous applause, if you will.
Now we fast-forward 5 years, 6 years, we find FEMA in response to Hurricane Katrina an utter failure. Just last week or 2 weeks ago, you had a Senate committee with jurisdiction over FEMA stating that FEMA is so broken that that bipartisan committee, leadership of that committee, believes that it should be completely dismantled.
How did we go in the late 1990s or in the 1990s from an agency that was acclaimed to be the most efficient and effective Federal agency to an agency that is almost dysfunctional today? Why do we have so many problems with FEMA?
Well, maybe it is because the administration dismantled the three national response teams prior to Katrina, so there was no group of folks within FEMA ready to go at a moment's notice. Perhaps it was that FEMA was folded into a brand-new Department of Homeland Security and, by all accounts, became the dumping ground for the Department.
Whatever these reasons are, I think every one of them point back to a management style or scheme or capability. One factor that certainly played a role in the change was that in the 1990s FEMA was run by professionals with strong emergency management experience at the State and local level.
Let me say that again. In 1990, early 1990s, the previous administration brought in emergency management professionals with strong management experience at the State and local level, and they took FEMA and they transformed it into a world-class organization. However, under the current administration, until weeks ago, FEMA was run by political hacks with little or no emergency management experience.
It is clear that on the fiscal and management fronts that this administration is failing the American people; and, as a result, you have agencies which cannot produce clean audits. They cannot tell you where the money was spent, the taxpayers' dollars that we are appropriating, and what was done with it. And that is one of the points that I want to make.
The other point and the one I mentioned earlier was the balancing of the Federal budget. Now, the previous speaker spoke of that; and, actually, as I said earlier, we are in complete agreement, that the Federal budget should be balanced.
I see that we have been joined by one of our fellow Blue Dogs, Representative Jim Cooper from Tennessee. Mr. Cooper serves in a role in the Blue Dogs where he chairs the policy committee and, as a result, has the task of leading us in developing of our policy positions. Mr. Cooper has done a lot of work on these issues, fiscal responsibility.
Madam Speaker, I would like to call on my fellow Blue Dog from Tennessee, Mr. Cooper.
So do I understand it to be Federal law that any business over $5 million has to use that accrual accounting procedure?
Thank you, Mr. Cooper.
A couple of things that you said struck me. One is, unsustainable; and the other is, we have to work together. Those of us who have been in this business, those of us who have any kind of accounting training in our background understand that those sorts of numbers, first of all, that reporting procedures, or those reporting procedures, are wrong; and the trend there of red ink, deficit spending, is unsustainable. It will be, and I think the public will recognize it when the markets begin to react to their fears that someday, if America doesn't turn around its habit or change its habit of deficit spending, that it will have difficulty sustaining itself economically.
The other thing that struck me about what you said is what I call the bipartisanship thing. I want to go to this chart here, and this talks about the budget deficits from 1982 to 2006, a 24, 25-year period, starts with President Reagan back in 1982. And you see the minus numbers here, all the way down through the fourth year of the Clinton administration, or fifth year of the Clinton administration, in which, working together right in here, a Republican-led Congress and a Democratic President worked together for the Balanced Budget Act of 1997, which then produced a positive result that got the country back on the right track, at least in terms of its cash basis deficit issue.
So you see that that was a very positive thing here.
And the biggest issue we had in 2001, when President Bush was sworn into office, was how do we deal with the $5.6 trillion, 10-year projected surplus we had. We had a $5.6 trillion, trillion, now, projected surplus in 2001.
Many of us, especially of those of us in the Blue Dogs said, hey, there are several things we can do. Number one is we ought to address these priorities related to Medicare and Social Security. We know those programs have long-term problems. Let's spend part of the money there. Let's use part of it to give back in tax breaks and let's use part of it to pay down this huge Federal debt that we had.
But this Congress and this administration decided not to follow that sort of three-pronged approach, debt reduction, deal with Medicare and Social Security, and tax relief. Instead, they poured all the money into tax relief. And then immediately you see what happened. You had 9/ 11 come after that and an economic downturn, and then now we have got deficits.
We have structural deficits. What does a structural deficit mean? It means that even if the economy works, everything works like it is supposed to, you are still going to have a deficit. You are still spending more money than you take in. That is wrong. That is fundamentally wrong. And we ought to, we have to correct it. We just can't afford to let it go on like this.
America is the greatest country on the face of the earth economically, politically, militarily. We won't be that way long if we don't fix this very dangerous structural deficit that we have.
We have been joined by another outstanding member of the Blue Dog Coalition. We come from all over the country. We have with us tonight Congresswoman Loretta Sanchez from California who has joined us now. She has been a leader. She is a member of the Armed Services Committee and a leader there; and I would like to yield at this time to my friend, Loretta Sanchez.
I thank the gentlewoman from California for your leadership on these areas and particularly on the Armed Services Committee.
If the gentleman would yield.
I know the gentleman served in Congress prior to 1994 and is actually on his second trip back and was not here in 1997 when we did the 1997 Balanced Budget Act. But Congresswoman Sanchez and myself were. And one of the keys to that 1997 Balanced Budget Act which led us to balancing the budget here in this era was PAYGO.
Spending caps was another key element of that. You put caps on spending programs, and you leave them there, and you agree upon that. Those are not here anymore, as you know, under this administration, this Republican-led Congress and Republican administration. Back then, it was President Bill Clinton, a Democrat, Speaker Newt Gingrich, a Republican, and Majority Leader of the Senate, Trent Lott, a Republican, sat together and said how do we do this in a bipartisan way. You don't have any of that at work anymore.
I think that is the thing that disappoints me more than anything, is I know that there are people of goodwill that would work in good faith all over this country that serve in this body that don't have that opportunity because we are not allowed to sit down. The majority party in many cases just won't sit down with us and work together to solve these problems. So these are very, very difficult solutions.
I know the chart that showed the accrual accounting and the $2.7 trillion deficit, those are hard numbers to understand. Here is one that is not hard to understand. This is what you actually owe today. We owe as a government today $8.352 trillion. That is trillion with a T. $28,000 for every man, woman and child. That is what our debt is today. And somebody has to pay that back. We also have to pay the interest on that. We have to service that debt on a regular basis. And as the interest rates go up, then, obviously, that is what I call a debt tax which cannot be repealed. It has got to be paid.
Madam Speaker, the fact is that some future Congress and some future President has a lot of hard, tough work to do, a lot of painful decisions to make to get us back in balance. It will be done somewhere down the road. We know that will happen, but it is going to be very painful.
Madam Speaker, the gentlewoman makes a good point. In the past when we had to run up debt, for instance, during World War II and at other times in a national emergency, that debt in large part was bought by Americans. That financing was provided by Americans. That is not the case today. Of this over almost $3 trillion that has been borrowed since January 2001, the great bulk of it, the majority of it, has been lent to us by China and Japan. So in most cases, foreign countries, some not necessarily that are friendly to our cause, are lending us this money.
I appreciate both of you folks being here today.
One last thing that I wanted to talk about, the third point that I wanted to make, was the issue of honesty and accountability by the administration. We have to deal with the American people in all areas, and particularly our financial area, with honesty, and we have to be accountable. On the congressional side, our forefathers designed our system so that the congressional side would have an oversight role, that we would make the laws and appropriate the money, and our job was to make sure that the executive branch, the President and the executive agencies, spent the money and applied the laws in the way that we intended them to be. And I do not think that is happening as well as it should these days. And I want to cite a couple of examples.
An article in Monday's Boston Globe reports that the administration has disregarded more than 750 laws enacted since he took office, adopting the policy that basically the administration has the authority to pick and choose a provision of which laws that they wish to follow. This is a blatant disregard for the way our forefathers set up our Federal Government and has really upset the balance between the branches of government, and it has prevented Congress from carrying out our responsibility of lawmaking and oversight.
Let me cite an example of oversight abdication: from 1994, when President Clinton sat in the White House and the congressional House and the Senate were controlled by Republicans, there were over 1,000 subpoenas issued from 1994 to 2000, over 1,000 subpoenas issued to appear before House committees, under oath, to justify and explain actions of the administration. It is a role that Congress should be playing, an oversight role.
Since January of 2001, there have been virtually no subpoenas issued by this House to this administration to explain their actions. And Congress has basically abdicated its oversight role. And as a result, you see misuse of power and some corruption springing up in places, and I think we will see more of that unless Congress steps up and exercises its role of oversight over the executive branch.
That is a great point, and I thank the gentlewoman for making it.
Madam Speaker, we have been joined by my good friend and fellow Blue Dog from Tennessee, Representative Lincoln Davis, and I yield to my friend now.
Madam Speaker, reclaiming my time, I appreciate the gentleman. He brings a lot of common sense and wisdom.
I know our time has expired, Madam Speaker. I just want to conclude by saying that I hope that you understand that the Blue Dogs are a group of men and women who are ready to work together across the aisle in a bipartisan way to solve these problems. We have some very, very tough problems, and we have a group of folks who are ready and willing to roll up our sleeves and go to work, and let's solve some of these problems.