Mr. President, am I correct we are in postcloture time now? Mr. President, I take this time to talk about the budget agreement that was negotiated by Senator Murray and Congressman Ryan and the work they did, but I first wish to relate to…
Mr. President, am I correct we are in postcloture time now?
Mr. President, I take this time to talk about the budget agreement that was negotiated by Senator Murray and Congressman Ryan and the work they did, but I first wish to relate to my colleagues conversations I had with numerous Marylanders over this past weekend-- people I didn't know who came up to me and said how pleased they were that Congress was on the verge of getting something done--something that will make a difference in our budget over the next 2 years. They were pleased that Democrats and Republicans were actually able to reach a compromise and that we were actually able to get our business done in some regular order. They were hopeful that it would not only make a difference in the budget of our Nation this year and next, but that it was a sign that Democrats and Republicans were prepared to work together to do the people's business. They were pleased this was truly bipartisan--a real compromise--something we haven't seen enough of in this Congress.
The American people understand that the Congress is controlled--the House by Republicans and the Senate by Democrats. They understand that. What they do not understand is how we have not been able to get together and compromise on our differences in order to move forward on the important issues of our time. They are very encouraged by this action.
So I intend to support the final vote on the budget agreement, and I hope my colleagues will support this agreement. It provides the framework for appropriations bills for the next 2 years without sequestration. That is regular order. The appropriations committees can now meet and decide the policy of our country through the appropriations bills as to where we believe priorities should be on Federal resources.
It allows us to operate, hopefully, without a continuing resolution. The number of continuing resolutions that we have passed indicate a failure because when we pass a continuing resolution, we do not adopt the priorities for the current time. Instead, we just freeze in prior years' priorities. We now have the opportunity to enact priorities that are important today, recognizing that some of the past spending is not necessary and there are other areas that we need now to adopt, considering the changes in our own communities and considering the international changes.
It allows us to operate without the fear of a government shutdown. Before I said a fear of a government shutdown because we thought we would not see a government shutdown, but as we know, in October we saw a government shutdown, and we saw people who were hurt, and we saw our economy that was hurt as a result of that shutdown. Now this budget agreement gives us the opportunity to use regular order so we can pass appropriations bills or an omnibus bill that sets current priorities. It allows us to do that without the fear of closing government, which is inefficient, costly, and harms our economy and people.
The framework that was adopted in this budget agreement allows us to protect our Nation's seniors, disabled children, and the disadvantaged. The resources can be made available to deal with our most vulnerable to allow us to move forward as a nation, and it shows we can work together.
So I strongly support this budget agreement. I do so but I want to express my disappointments. I am sure that every Member of the Senate will have disappointments. But I am concerned about what is included in this budget agreement and what is not included, and I want to spend a few minutes talking about it.
I am disappointed that this is a 2-year agreement, that it does not completely remove sequestration. I think all of us would acknowledge that sequestration is something we do not want to see in effect because it is mindless across-the-board cuts. It does not set priorities. We are responsible to set priorities. If you ran into a problem with your own home budget in your family, if you lost some income, you would not cut every expenditure item identically. You would make decisions. You would make sure your family had a roof over them. You would make sure they had food on the table. Maybe you would postpone a weekend trip. You do not treat every expenditure the same. Sequestration treats every expenditure the same.
The good news in this budget agreement--the good news--we do not worry about that for the next 2 years. The bad news: It returns after 2 years. I know Senator Murray has worked very hard to get rid of sequestration. I know she is going to continue to work on that as the chair of the Budget Committee and, as I said earlier, I applaud her greatly for being able to reach an agreement with the Republicans, particularly in the House. But I would hope we could get rid of sequestration once and for all. Unfortunately, this budget agreement does not do it. It is for only 2 years. I would have liked to see a long-term budget agreement.
On that, I would like to see us enact a long-term budget agreement. We talk frequently about the fact that one of the most damaging parts to our inaction is uncertainty. When businesses have to make decisions and individuals have to make decisions, the uncertainty of our Federal budget causes them harm, extra costs, anxiety. We need a long-term budget agreement, the so-called grand bargain. Yes, we will get an agreement for these 2 years, but it does not take us beyond that. We all understand we need a responsible budget, one that deals with the investments that are important for job growth, but also reduces the budget deficit.
I know Chairman Murray has mentioned this frequently, but let me just repeat this. During the past 2 years, we have reduced the deficit by $2.8 trillion. We have done a good job in reining in the Federal deficit. That is over the period of fiscal years 2014 to 2023, and that is before sequestration.
So when you go back to Simpson-Bowles and the amount of deficit reduction we were trying to get, we are about three-fourths of the way there in reducing the deficit. Yes, we have to do more. We have to continue to reduce the deficit. But let us acknowledge that we have done a pretty good job in reining in the Federal deficit, and I applaud the Chair of the Budget Committee for her leadership in that regard.
We also must allow for critical investment for job growth. We are in a global economy today. We have to invest in modernization. We need new investments in energy in this country. We need transportation investments, not just in roads and bridges, but in transit systems. We need to invest in education. Education is the great equalizer in America. We are in a global competition. We know we are behind in the STEM fields of science, technology, engineering, and math. We have passed legislation to try to catch up. We have to fund those initiatives. The Federal Government has to be an active partner in education.
I can mention many agencies, but I always like to mention the National Institutes of Health, which happens to be headquartered in my State of Maryland. It is very important to New Jersey, the Presiding Officer's State, and very important to every part of our country. Why? Because they do the basic research which is the building block for the type of technology growth which is critically important in America.
We have the best trained people here in America. We need to invest in the basic research so we can continue to lead the world. Yes, the budget for NIH has not been as strong as it needs to be. We have to invest more money in that.
There are many reasons we need a long-term budget agreement. We need it for predictability, so we do not govern from one manufactured crisis to another manufactured crisis. But we
also need it so we can invest in critical investments for job growth in America. That is another reason why I hope we are able to build on this 2-year agreement for a longer-term budget agreement.
We also need to protect the safety nets as we do that. We need a balance here, and those who are most vulnerable need to be assured their government is on their side to help them, whether they are our seniors, whether they are people with disabilities, whether it is young people who need an opportunity to be able to take advantage of the opportunities in America.
We need to enhance the protection of our environment for future generations and have an energy policy that makes sense not only for America's security and environment but also for our economy.
So a balanced agreement for a long-term budget, which is not in this agreement, would give us that predictability, would give us that ability to move forward. To do that we need to deal with mandatory spending. This budget agreement deals with discretionary spending. It does not deal with mandatory spending.
We have taken steps to move in this direction. The passage of the Affordable Care Act puts in place a manner in which we can deal with health care costs, by reducing the growth rate of health care expenditures, by dealing with the readmissions to hospitals, by managing complicated illnesses, duplicative tests, getting people out of the emergency room into our clinics and into preventive care, having seniors take advantage of preventive health care because they do not have to pay a copayment that they could not afford.
These are ways we improve what we call the delivery system of health care in America, where you bring down the costs of health care. That is the best way to bring down the mandatory spending accounts in Medicare and Medicaid--reduce health care costs. We need to do more of that. We need to reduce the cost of our mandatory spending in this country. We could have done more, and this budget agreement did not deal with that.
Then there is the issue of revenue. I am going to talk about revenue because I was proud to be part of the Congress that balanced the Federal budget when Bill Clinton was President of the United States. Do you know what we did back then? We brought in more revenue, we reduced spending, and we balanced the budget. What happened? Our economy took off. We were not only growing jobs, we were growing good-paying jobs, and the standard of living for all Americans went up. We have to get back to that.
We are spending too much today, and we do not have enough revenue. Yes, this agreement takes care of reducing some spending, but not all, and does virtually nothing about revenues. We have to get back to that. We can bring in the revenue necessary to balance the Federal budget by reforming our Tax Code. There has been some great work done in the Senate Finance Committee I am privileged to serve on--Democrats and Republicans taking a look at our Code to see ways we can make more sense out of our Tax Code. We can do things about it.
Let me just remind my colleagues that we spend more money in the Tax Code than we do through all the appropriations bills. We spend more in our Tax Code. Over $1 trillion a year is spent in our Tax Code. These are tax breaks that go to some but not all taxpayers.
So there is no need to raise rates. All we need to do is close loopholes and be more critical of how we spend our money in the Tax Code, as we do on the appropriations side. Every dollar we spend on the appropriations side is scrutinized all the time. We need to do the same on the tax side. Quite frankly, Senator Baucus and Senator Hatch have worked out a way that the members of the Finance Committee can take a look at some of those. I think we can reach some agreements on areas of the Tax Code that are not high priorities that can reduce the revenue hemorrhaging we have. Put another way, if we eliminated all the tax breaks that are in the Tax Code, our rates could be one-half of what they are today--one-half of what they are today.
So we not only can bring in the revenue necessary to balance our Federal budget and allow for the types of investments that are important for job growth, we can actually reduce the rates for a large number of Americans. Unfortunately, that is not in this budget agreement. To me, that is a disappointment, that we are not dealing with the balance that is necessary for a long-term budget agreement.
Then there is one other area I want to talk about, and it is not going to be a surprise to my colleagues--a couple of areas I want to talk about, one of which is the Federal workforce.
This agreement provides for a 1.3-percent increase in retirement contributions for new hires under Federal service. That is on top of an increase that was just done a year ago on the extension of the payroll tax, where we increased the retirement contributions for new hires. We also, in this budget agreement, have a reduction in the COLA increases for military retirees.
I think that is regrettable. I do not believe that should have been in this budget agreement. Our civilian workforce has already contributed. When you add up what will be done by retirement contributions, that is going to be over $20 billion. We have had 3 years of a pay freeze. We have a way in our law where we make adjustments to our civilian workforce pay each year that reflects not the cost of living, something less than the cost of living. Our Federal workforce has seen a freeze. They have not gotten that for the last 3 years. That is close to $100 billion in contribution to the deficit. They have already done that. So they have contributed already about $120 billion-plus, and that does not include--does not include--the fact that many of our Federal workforce have had to endure furloughs as a result of sequestration and government shutdowns.
So our Federal workforce has contributed. These are predominantly middle class families, a large number of veterans, a large number of women, a large number of minorities. They have contributed more than any other group of working Americans already in dealing with this deficit reduction, and I find it very regrettable that this retirement contribution provision was included in the budget agreement.
Let me just quote, if I might, from the nonprofit Partnership for Public Service that commented to Senator Murray and Representative Ryan during the budget negotiations. I quote this for what they say because I think it expresses my view and I hope the view of all the Members of the Senate:
As you work to put our federal government on a sustainable
fiscal path, we encourage you in the strongest possible terms
to treat the federal workforce as the considerable asset that
it is, and ensure it is appropriately trained, compensated
and resourced to serve the American people with excellence
for the long term.
The federal civilian service is smaller today on a per
capita basis than at almost any time since the Kennedy
Administration--yet its responsibilities are greater than
ever. Rather than asking how to make the federal workforce
smaller or less expensive, Congress should be asking what we
need the Federal Government to do, and what it will take to
ensure that we have a workforce with the necessary skills in
appropriate quantities to execute those responsibilities with
maximum effect at a reasonable expense.
Proposals to freeze federal pay, change retirement
contributions or reduce the workforce through attrition do
nothing to improve the capacity and performance of the
federal government and those who serve in its civilian
workforce. These proposals are easy and expedient, but they
miss the opportunity to make real and sustained improvements
in how the Federal Government manages its people.
I could not agree more with those comments. We have a smaller workforce today, asked to do more extremely important work. These are people who are protecting our food supply. These are the great scientists who are doing the research to give us what we need, new technologies in health care. These are people making sure our seniors get the services they so richly need and deserve. These are people who are on the frontline in so many different ways.
Our responsibility is to make sure they have the resources to carry out their mission. Yes, we make value judgments as to what are the priorities, but to put our class of Federal workers through additional cuts, to me, is wrong. I regret that was included in the budget agreement.
I also wish to mention I was disappointed that we were not able to use
this last train that will reach the finish line before we recess to extend unemployment insurance. Some 1.3 million workers are in danger of losing benefits come January 1. In 2014, as many as 4.7 million workers will not be getting the extended benefit, 83,000 of whom are located in my State of Maryland.
Let my point out, I know the unemployment rates are getting lower. We are all working to make sure to get them as low as we can. But they are still substantially higher than they were when we first recognized that we needed to have extended Federal unemployment benefits because of the softness in our economy. Particularly for those who are long-term unemployed, it is extremely difficult to find a job. If you are unemployed and you are looking for work, it is tough out there.
So the right thing for us to do is to continue these benefits for people who are actively looking for work and cannot find jobs. This is an insurance program. The moneys have been collected during good times so that we pay during these times. The money is there. We need to make sure those benefits are continued. I was disappointed it was not included in the legislation. It will help our economy grow.
There are more and more economic studies that show every dollar we make available in unemployment compensation returns much more to our economy in job growth. So this is hurting ourselves by not extending it, plus we are hurting millions of Americans who are going to be more vulnerable in trying to keep their families together during these very challenging times.
Let me conclude by saying that as I said in the beginning, this is an important budget agreement to get approved. I strongly support it. I applaud the leadership of Senator Murray and Congressman Ryan in bringing us to this moment. My constituents believe this is a very important step forward, showing that we can compromise and work together and get our work done.
In a few days we will bring the first session of the 113th Congress to a close and leave Washington to spend the holidays with our families and friends. I hope each one of us will use that time to reflect on the extraordinary privilege of being a Member of Congress. I hope each one of us will reflect on the extraordinary challenges our Nation faces. I hope each one of us will come to the conclusion that we can do extraordinary things if we work together. The American people demand and deserve no less.
I yield the floor.