Floor Statements

Mr. Speaker, I rise today to express my support for H.R. 2830, the Pension Protection Act of 2005.

As the nature of our economy has changed in recent decades, our manufacturing sector has experienced difficult times. Many companies in the auto, auto parts, and steel producing industries are now burdened with expensive legacy costs, particularly pension obligations, that are increasingly difficult to honor. Long-term costs have contributed to the need for companies in these industries to seek significant cost savings, sometimes through factory closings and employee layoffs. Consequently, defined benefit pension plans sponsored by some of the companies in these industries, as well as in the airline industry, in which several companies have sought Chapter 11 bankruptcy protection in recent years, have been turned over to the Pension Benefit Guaranty Corporation [PBGC].

This legislation, while not perfect, seeks to increase private companies' funding of their employees' pension plans, as well as improve the financial health of the PBGC by increasing companies' premiums to the agency. The risk of a taxpayer-funded bailout of the PBGC, which is funded entirely by companies' that sponsor defined benefit pension plans, is very real in the near future. According to Bradley Belt, the Executive Director of the PBGC, ``Unfortunately, the financial health of the PBGC is not improving. The money available to pay benefits is eventually going to run out unless Congress enacts comprehensive pension reform to get plans better funded and provide the insurance program with additional resources.'' Congress has a responsibility to act now to prevent a PBGC bankruptcy and future taxpayer bailout of the agency.

Last year, the PBGC absorbed 120 terminated defined benefit pension plans, and last month the agency announced that in fiscal year [FY] 2005 it had liabilities of $79.2 billion and assets of $56.5 billion. That amounts to a deficit in the pension insurance program of $22.8 billion. While the FY05 deficit improved slightly over FY04's deficit of $23.3 billion, the latest deficit figure from the PBGC is somewhat misleading. The agency's FY05 deficit actually would have increased to $25.7 if it had included company-plan terminations announced after the fiscal year ended on September 30. Probable pension losses from companies that filed for Chapter 11 protection in September, including 2 large airlines and a major auto-parts supplier, will likely increase the PBGC's liabilities. The PBGC estimates that the pension plans in those companies are underfunded by more than $15 billion. The agency includes those pension plans in its category of financially weak company plans, the liabilities of which rose to $108 billion this year from $96 billion in 2004.

In 2004, the PBGC collected only $1.5 billion in premiums from the companies that it insures. H.R. 2830 would raise companies' annual PBGC premium payments from $19 to $30 per participant. The $30 premium would be phased in beginning in 2007, on a schedule based on a plan's funded status. Even with premium increases in H.R. 2830, it could take more than a decade to close the agency's deficit. I hope that this bill is the beginning of the PBGC's long march back to fiscal health.

Further, H.R. 2830 would increase companies' funding requirements for their defined benefit plans and would shorten the period over which funding shortfalls must be eliminated. The bill's provisions regarding both single- and multi-employer plans move companies in the right direction.

I also appreciate the willingness of Chairmen John Boehner and Bill Thomas to agree to a significant improvement in the ``shutdown benefits'' provision of H.R. 2830 as introduced. Shutdown benefits, which are payments made to long-service employees when a plant is shut down, would have been prohibited under the original version of H.R. 2830. The improved version of this measure allows a defined benefit plan to provide shutdown benefits if the plan is at least 80 percent funded. Well-funded pension plans will be able to continue providing shutdown benefits to employees who have worked hard over their careers and expect the retirement benefits that they have been promised. H.R. 2830 will soften the blow of expected plant shutdowns at companies that have fulfilled their responsibilities to their employees and funded their pension plans as they were supposed to over the years.

Finally, I am very supportive of the provisions in H.R. 2830 that would make permanent several retirement savings provisions that were included in the 2001 tax law, including the increases in IRA and 401(k) contribution limits, with their full adjustments for inflation. Prior to 2001, the maximum amount that a taxpayer could contribute to an IRA was $2,000 per year. The 2001 tax law gradually increased that limit to $5,000 [by 2008]. I worked to ensure that IRA contribution limits increased in that law, and believe that the permanent extension of those limits will increase the certainty needed in retirement planning. Likewise, I strongly support the bill's language that would make permanent the saver's credit for low-income taxpayers. Taxpayers with incomes below $50,000 for a married couple, and below $25,000 for individuals, are eligible to receive a tax credit of up to 50% of contributions [up to $2,000] that they have made during the year to employer-sponsored retirement plans or IRAs. Increasing incentives for people of all income brackets to save for their retirements should be a top priority of Congress, and I will continue to work with my colleagues in both parties to improve the national savings rate in our country.

Mr. Speaker, I rise today to express my opposition to H.R. 4297, the FY05 tax reconciliation bill.

I do not oppose tax cuts, and in a more stable fiscal climate I could support reduced tax rates for capital gains and dividend income. What I do oppose is borrowing money to pay for tax cuts, and particularly for tax cuts that do not expire for another three years.

In 2001, I was one of only 28 House Democrats to vote for President's Bush's 2001 tax cuts that reduced marginal income tax rates. Since 2001, however, our country's fiscal condition has dramatically reversed course. In 2001, the Congressional Budget Office (CBO) predicted that the 10-year budget surplus would be $5.6 trillion. That projected 10- year surplus of $5.6 trillion has deteriorated into a projected $3.9 trillion deficit during the same period. In FY2005, the Federal Government ran a budget deficit of $319 billion, the third largest deficit in our Nation's history.

Further, on February 17, 2004, the national debt of the United States exceeded $7 trillion for the first time in our country's history. On October 21, 2005, the national debt of the United States exceeded $8 trillion for the first time in our country's history. That is an increase of $1 trillion in our national debt over the last 2 years. It took our country 193 years, from 1787 to 1980, to rack up $1 trillion in debt, and just under two years, from 2004-2005, to match that level of borrowing.

An $8 trillion national debt comes down to nearly $27,000 per person in our country, and that is simply unacceptable. The first rule of holes is that when you're in a hole and you don't want to go deeper, stop digging. It is now past time that we stop digging our country deeper and deeper into debt, leaving our

children and grandchildren to pay a steep price for the deficits and debt we are adding to today.

Mr. Speaker, H.R. 4297 extends several tax relief measures, including reduced rates for capital gains and dividend income, that I support and would vote for in a balanced, revenue neutral measure. I support: the saver's credit; small business and brownfields expensing relief; the Work Opportunity Tax Credit; the research and experimentation credit; deductions for higher education and classroom expenses; the exclusion for active financing income; and 15-year depreciation rates for restaurant equipment and improvements to leased property. Unfortunately, the Joint Tax Committee estimates that H.R. 4297 will cost $56.1 billion over the next five years, and the CBO estimates that extending the dividend and capital gains tax reductions alone would cost approximately $160 billion from FY2008 to FY2015.

Further, unlike the Senate tax reconciliation bill, the House version of this legislation does not address what is arguably the most significant looming tax concern for middle-class American families, namely the growing number of Americans who are forced to pay the alternative minimum tax (AMT). While reduced rates for capital gains and dividend income will not expire for another three years, AMT relief is scheduled to expire in less than one month, at the end of this year.

If AMT relief is allowed to lapse, the number of taxpayers subject to the AMT will increase from 3 million in 2004 to 21 million in 2006. The Congressional Budget Office estimates that extending AMT relief and indexing it for inflation would reduce federal revenue by $191 billion over the next five years. This is an immediate problem that Congress and the Administration need to work together to fix in a responsible, bipartisan way, before millions of Americans are hit with large, unexpected tax increases.

Mr. Speaker, I will continue to work with my colleagues in both parties to advance commonsense, bipartisan approaches to solving our country's fiscal problems. I urge my colleagues on both sides of the aisle to act as soon as possible, in a fiscally sound way, to prevent serious consequences for current and future generations.

Mr. Speaker, today America celebrates the life of Rosa Parks. Fifty years ago a brave lady said ``no,'' she would not go to the back of the bus and she helped end a sad chapter in American history. When Rosa Parks refused to move she stood tall for what America is about--for the dignity of every person and for human rights. Rosa

Parks helped make us a better country. Rosa Parks made us all proud.

Mr. Speaker, I want to take a moment to bring to the attention of the House of Representatives a profile and interview of one of my leading constituents in Kansas' Third Congressional District, Walter Hiersteiner of Prairie Village, Kansas. Walt recently was the subject of an article in ``The Best Times: a newspaper for Johnson County's 60-and-older citizens'', which I am including with this statement.

Walt Hiersteiner has a long history of service to his family, friends and community. Since 1946, he has been involved with the management and administration of the Tension Envelope Corporation of Kansas City, Missouri, where he has been responsible for numerous innovations in that field, including 25 United States patents. Just as important, if not more so, has been his dedication to the Kansas City community, including: service on the Shawnee Mission Board of Education; establishment of the Committee for Excellence, which supported several school bond issues; service on the Kansas State Board of Regents, to which he was appointed by Governor Robert Docking; chairing the Legislative Committee for the Johnson County Community College Foundation; and fundraising and direct financial support for numerous worthy community causes, including the Children's Center at Johnson County Community College and the Truman Medical Center.

I am pleased to have this opportunity to place this profile from the Best Times in the Record, but I am more pleased to have this opportunity to publicly recognize Walt Hiersteiner as a vitally important community leader and activist in the Third Congressional District, and as my personal friend for many years.

[From The Best Times, Sept. 2005]

Walt Hiersteiner: Community Involvement Over a Lifetime

(By Lynn Anderson)

A native of Des Moines, Iowa, Walter Hiersteiner graduated

from the University of Iowa in Iowa City (a member of the Phi

Beta Kappa society in 1939) and then Harvard Law School in

1942, where he was an editor of the Harvard Law Review. While

a student at the University of Iowa, he met Jean Newburger,

whom he married in 1944. After World War II, the couple moved

to Kansas City.

Following his graduation from Harvard Law School, he

practiced briefly with the Kansas City law firm of Ryland,

Stinson, Mag & Thomson. In 1942 he was called in as a

commissioned Naval officer, serving until 1946, principally

as a naval gunnery officer stationed in Cincinnati, Ohio, and

then Long Island, New York.

Following his discharge in 1946, he practiced briefly with

the law firm of Margolin & Reinhardt in Kansas City. Then, in

1946, he joined the Tension Envelope Corp., which at that

time had four manufacturing facilities. Years later, when

Bert Berkowitz and Walter Berkowitz died within three weeks

of one another, Bert Berkley, the son of Bert Berkowitz,

became president, and Walter became executive vice president,

sharing principal management responsibilities with Bert

Berkley.

Bert Berkley's son, Bill, has taken over the sole

management of the Tension Envelope

Corp., which has manufacturing plants in Malaysia, China, and

Taiwan, and eight domestic manufacturing plants, with 30

sales and service offices in major markets. The company

manufactures more than 12 billion envelopes a year.

Walt champions multiple civic causes with energy and

conviction, particularly in the areas of public education and

health care. He was named Johnson Countian of the Year in

2003. Eighty-six years old, he lives in Prairie Village with

his wife, Jean. They have four children, all of whom

graduated from the Shawnee Mission district public schools,

and nine grandchildren. His oldest son, Richard, is a lawyer

with the firm of Palmer and Dodge in Boston, Mass.; Mary is a

teacher in special education and also a partner in a tutoring

business; Joseph practices law in Kansas City with the firm

of Seigfried, Bingham; and Dorothy is an art therapist in

Boulder, Colo., who exhibits her watercolor paintings.

Lynn Anderson was treated to a warm, stimulating

conversation with Hiersteiner in his third-floor office at

819 E. 19th St. in Kansas City, Mo.

Q: Let's begin with a little about your background. You

grew up in Iowa, went to the University of Iowa and Harvard

Law School, served in the Navy, and finally settled in Kansas

City. You've now been in Kansas City for almost 60 years. Why

have you wanted to continue making Kansas City your home?

A: Jean and I are both strong Midwesterners and we prefer

the Midwest unquestionably. I had many opportunities to

practice law in the East, but we chose to stay in the

Midwest, primarily because we thought it afforded the very

best environment in which to raise children.

We enjoy everything about living in Kansas City, not the

least being its people, the educational facilities of Johnson

County for our youngsters, and the wonderful company for

which I have worked nearly 60 years. We really have had no

desire or inkling to go elsewhere!

Q: You have been with the Tension Envelope Corp. since

1947. You started in sales, later became sales manager and

subsequently executive vice president, and now are vice

chairman of the board. In what ways has the life of a

businessman and lawyer suited you?

A: A law school education really amounts to learning how to

think, and I was able to use thinking skills in the business

world. Initially I was involved in labor relations, but I

became actively interested in the envelope business. That

interest was acquired quite naturally because I was always

interested in riddles, which led to my being fascinated by

the complicated envelope equipment, leading to my developing

25 envelope designs that have been patented.

The company employs a cadre of sales representatives. Often

they sought me out, expressing a particular interest of a

sales prospect, and together we developed a special envelope

to fit the customer's needs. Our company's reputation has

been founded not only on regular envelopes of all

descriptions but on specialty envelopes.

You asked how I would come up with a new design. It's a

process of constant and penetrating thought--pensive

thoughtfulness--about how to get a better result. I would

think about solutions for envelope puzzles at all hours!

Q: Hanging on your office wall are 25 framed patents of

envelope designs you created, including an airline ticket

envelope and specialty packaging envelopes for Hallmark,

among a large number of other customers. Were you always

inventive?

A: Twenty-four of the patents are envelopes, but one is of

particular interest. In summer vacations at Cape Cod, our

kids would have dry cereal for breakfast--but without closing

the boxes satisfactorily, the cereals became moist. I

developed a special closure on a box of cereal, and indicated

I was going to apply for a patent, to which my youngsters

felt ``not surprised!'' I communicated with the Kellogg

Company and General Foods after securing a patent, but the

Kellogg Company was inspired to go in a different direction

by my concept, and that particular patent never materialized

into the acceptance I had hoped.

Our company is still imbued With the philosophy of coming

up with something different and better for customers with

specialty needs. Today, in most instances, others in our

company handle these specialty problems. But if a designer

has an interesting challenge and comes to me seeking advice,

I'm happy to provide it!

Q: Tension Envelope has a foundation providing grants for

worthy nonprofit activities. Do you believe that businesses

have a responsibility to contribute profits in ways that

benefit the community?

A: Absolutely! Tension Envelope was founded in 1888 by the

father of Bert Berkowitz and Walter Berkowitz, and Bert and

Walter were always involved in community activities,

principally public education and hospitals. Our company

continues to push for community involvement because it is so

rewarding!

Tension contributes to the community by being a family-

focused company. Over the years, we have had two or three

generations of the same family working in our company--in

part, I think, because our management maintains a genuine

interest in its employees. We have a fine retirement program,

so many of our former employees are now enjoying the

retirement they richly deserve.

And I very definitely believe that community involvement is

a responsibility for all corporations. We all take advantage

of the good fortune of living in the United States, and

specifically in Johnson County, so we should share that good

fortune.

Q: Five mornings a week, you are still at your desk at

Tension. Do you have opportunities to interact with younger

employees and managers? And why don't you simply go home and

find recreational and retirement activities?

A: Simply explained, I'm having too much fun to quit. I'm

able to have the better of both worlds: semi-retirement and

continuing involvement. I am an observer and a consultant,

and I try to stay out of the way of the people, many or most

of whom I have trained! I engage in some mentoring. I'm

finding, though, that it's not so easy to be graceful when

you see that those whom you've trained are sometimes doing a

better job than you did!

Q: In 1979, you and Jean established an Outstanding Service

Award at the University of Kansas School of Law for the

graduating student whose service to his or her fellow

students was considered by the faculty as demonstrating

foremost promise for the legal profession and society. You

seem to be encouraging young men and women to think about

social service.

A: It's significant to us that many of the Outstanding

Service Award winners say they became involved in social

service to ``pay back'' the community. I recognize what they

mean by that, but Jean and I don't think of it exactly that

way. We just deeply enjoy the pleasure we get from working

with the splendid people with whom we collaborate, along with

the satisfaction of seeing what we can accomplish together.

Q: You are a member of the New Reform Temple. What makes

this synagogue and its people special to you?

A: We all need to have pride in our own faith, whatever it

may be, and opportunities to express our faith with others.

In fact, Jean helped in the establishment of the New Reform

Temple, which now has a new rabbi, Jacques Cukierkorn, very

active in the city's Interfaith Alliance and off to a great

start.

Q: People of a range of economic levels often want to

contribute to their community. What are your thoughts on how

we can all do that?

A: Many of the people with whom we associate have a passion

for being helpful. There's no ``admission fee'' for

volunteering! Early volunteering of one's energy and support

can be equal in importance to larger dollars that could be

contributed.

It's a good idea to apply the energy and support even

without funds early on, and grow into perhaps more

contribution of both energy and support with funds later on.

Q: In 1957, you and Jean moved your four children from

Kansas City to Fairway. Did your move to Johnson County have

anything to do with the school systems?

A: It had everything to do with the schools! In Kansas City

in those days, even in the secondary grades, the schools had

sororities and fraternities, which in our judgment interfered

with general relationships and activities and subordinated,

in many instances, the concentration on academics. I sought

out the superintendent of schools to persuade him that their

existence was undesirable and at odds with what should be

gleaned from public education--but nothing appeared on the

horizon, so we moved to Kansas, where the fraternities and

sororities then and now have been prohibited by state law

except in higher education.

Many of our friends have sent their children to private

schools, which we never considered. Our personal view was

that our children would receive better preparation for public

life--for the mixture of people they would encounter and for

how they would need to communicate--through a public school

education. I think public schools tend to be more

competitive, inspiring youngsters to do well. Public school

is a strong preparation for life after school.

Q: In 1968, you were elected to the Board of Education for

the Shawnee Mission School District. You became board vice

president, then president in 1972. What drew you to that form

of public service, and what were some of the most contentious

issues and most rewarding moments?

A: One day long ago, I read in the paper that the Shawnee

Mission Board of Education had refused to accept government

funds to supplement its special education programs, in the

fear that those monies might be dominated by their funding

source. That didn't appeal to me and I decided that, rather

than just complaining, I'd run for the school board. The more

I got involved after a successful campaign, the more

justified I felt in that investment of time.

Of course, I found some things that I felt were not

pleasing, including the fact that girls were denied any

athletic competition and confined to participating on drill

teams or as cheerleaders. We were able to change that, with

the help of the other members of the board, to the point that

the principal of Shawnee Mission North once introduced me to

his students as ``the father of girls' athletics'' in the

district! That's something of which I still remain very

proud.

Another thing I found displeasing was the concentration by

the school district and its administrators in the length of

students' hair and the length of skirts, about which they had

rules that they monitored rather carefully. During that

period of time my older son, who was in law school, came home

sporting a mustache. I didn't happen to prefer it, and I

thought I was being diplomatic

about expressing my objections. However, six months later,

when I saw him at law school, he had removed his mustache.

When I inquired as to the reason, his explanation really

awakened me. He said he simply got tired of it and that if it

hadn't been for me, he would have been tired of it three

months earlier! When I reported that to the school board and

campaigned for a total concentration on comportment in

academics, and not on these extraneous things, the board

finally agreed to do away with any dress codes. The

administrators, to their dismay at the outset, found that

students' appearance did not deteriorate as they had

anticipated.

One of the things I remember with satisfaction is that I

had an intern working with me for awhile when I was on the

school board, doing leg work and research, helping me

considerably and helping in his own development. I have

recommended that a few times since.

Q: In the 1980s, concerned about funding for the school

district, you helped organize the Committee for Excellence.

You worked with Larry Winn III and Fred Logan. (Since that

time, Winn has been elected to the school board and Logan has

become a co-sponsor of the Committee for Excellence.)

Initially you were very much involved in gaining the support

of a levy election and then two bond issues, the last of

which was for $140 million in the Shawnee Mission district.

A: Through the work of the Committee for Excellence, which

had hundreds of supporting activists or more, we were able to

get three school bond elections passed with 60 to 70 percent

of the vote in favor. Recognizing that about 30 percent of

those voters did not have children in the schools, I think

that is conclusive proof of the commitment to quality

education that permeates Johnson County.

The Committee for Excellence has also been active recently

in funding for public schools, which has decreased ever since

1992, when the legislators took funding responsibilities away

from the districts and returned those responsibilities to

Topeka. We shared concern with all Kansas districts about the

inadequacy of the funding, and lobbied extensively to

represent the youngsters. We feared that many legislators

were more interested in getting reelected than in meeting

this educational priority. The committee remains very active

now, because it is clear that the foundation plan for

supporting public schools in the state of Kansas requires

major reform.

Q: Tell us briefly about your experience as a member and

president of the Kansas Board of Regents.

A: I was appointed in the mid-1970s to the Board of Regents

by outgoing Gov. Robert Docking, at the request of the

incoming governor, Robert Bennett. This was a practice that

indicates the cooperation and civility existing in those days

that has largely disappeared in state and national politics.

My experience on the Board of Regents was wonderful and one

of the most enjoyable activities in which I have participated

in the public arena, largely because of the other members of

the board, with whom I had the pleasure to associate in the

governance of public-supported colleges and universities in

Kansas.

I would not like to have this statement misunderstood, but

I have considered Bob Bennett--quite apart from any

appreciation for his appointing me to the Board of Regents--

to have been the best governor Kansas has had in my

experience, and maybe ever. I couldn't be more sincere in

saying that, because in my opinion, Gov. Bennett made

decisions in the interest of the whole state quite apart from

partisan motivation. I learned a good deal from him in that

regard.

Q: You chaired the Legislative Committee for the Johnson

County Community College Foundation. What was that

committee's mission?

A: There was concern about losing local control over

community college funding at the time of the reorganization

of the Kansas Board of Regents. There is now a predominant

feeling at that college that the situation is stable.

However, the committee is ready and willing to reactivate if

needed.

Q: In December 2003, the Children's Center at Johnson

County Community College was renamed the Hiersteiner Child

Development Center in honor of you and Jean. Your financial

gift allowed the college to enlarge and renovate its center,

making it possible for more students pursuing the curriculum

in early-childhood education to move from the waiting list

into the program. Has child development had a special place

in your heart?

A: We have four children, and when we first moved to Kansas

City, my wife, with some others, organized a coop nursery in

association with the then University of Kansas City. Science

has recently revealed that the brain commences to develop

even prior to birth, and that was assurance to my wife and me

that children needed the benefit of trained professionals,

not just those offering custodial care.

Jean has always had a passion about teaching child

development specialists. At the center's dedication, she told

the audience that she had always thought the name

``Hiersteiner'' was a bit long and difficult every time she

had to fill out forms or write a check--but her pride in

seeing the name on the building was changing her view about

the awkwardness of our name!

Q: You co-chaired Truman Medical Center's first major fund-

raising effort, which was a $20 million capital campaign. For

many years you have been on Truman's Charitable Foundation

board, while Jean has been active in the medical center

auxiliary and gift shop, which she co-managed for about 15

years. Additionally, you and Jean have endowed scholarships

for nurses. What fuels your passion for health care activism?

A: Everyone recognizes the requirement of adequate health

care, but unfortunately, there are any number of individuals

without health insurance and without the means of paying for

care.

The Menorah Hospital experience that I had for more than 40

years was rewarding, but my involvement at Truman Medical

Center for about 20 years is in my judgment absolutely

imperative because the mission of Truman is to take care of

clients irrespective of their ability to pay. Truman is a

wonderful community institution under the expert presidency

of John Bluford, meeting a need for those who cannot afford

to pay. But it also has an excellent faculty that is good

enough to be desired by any number of paying patients. Its

equipment is first rate and its faculty is outstanding.

Interestingly enough, I became involved at Truman while

still a member of the board at Menorah, because I received a

mailing from Truman that had too much postage on the

envelope. I called to explain to them that they could save

money by being up to date on postal regulations. About 15

minutes after that call, Jim Mongan, who was at that time the

president of Truman Medical Center, was in my office inviting

me for a tour of the facility, after which he was able to

secure my appointment to the board. That has been a very

satisfying experience over the years. Without the assistance

of this outstanding institution, most of the private

hospitals, if not all of them, would have red ink on their

bottom line. No one in the community should be satisfied

witnessing people in our community not having any access to

health care at all.

Q: You are on the advisory board of the Mainstream

Coalition. What parts of that group's mission are most

important to you?

A: I believe our goal is education for the community about

domestic, national, and foreign issues for which the public

needs as much information as possible. The coalition is quite

diverse and nonpartisan, with Republican, Democrat, and

Independent members.

Q: Countless community leaders have praised the fact that

your stand on issues or candidates is never based on ideology

or party affiliation, but rather on what you believe is best

for the people of Kansas City. What are the keys to

maintaining an independent frame of reference?

A: Well, I persist in my personal points of view, and I

believe that people involved in their communities do a better

job of it if they act in as nonpartisan a way as they can.

Organized politics has never been appealing to me, so I try

to make my mark outside the realm of parties.

Q: How do you keep your optimism going?

A: Quite often, I don't! But the main tools I use are hope

and paying attention to what is going on in my community and

what I con do about it.

Mr. Chairman, since I have been in Congress, I have been a consistent supporter of Head Start. This program assists over 900,000 children and their families nationwide, including the 1,421 children enrolled in 6 Head Start programs in the Third Congressional District of Kansas. Thanks to this program, children enrolled in Head Start in the district are nearly twice as likely as other low-income children to receive basic medical care and over three times as likely to receive dental care. In the Third Congressional District, 77 percent of Head Start children have received basic primary health care, and 76 percent have a continuous, accessible source of dental care. The program has also provided mental health services to over 150 children in the district and has provided assistance to 200 children with disabilities.

I commend the Education and Workforce Committee for working in a bipartisan manner, by reporting legislation that did not include provisions that prevented similar legislation from being enacted in the 108th Congress. Specifically, the Education and Workforce Committee did not include language permitting faith based organizations to discriminate on the basis of religion, which was part of similar legislation in the 108th Congress.

During the debate on H.R. 2123, the House adopted an amendment offered by Representative John Boehner, which permits faith based organizations to make hiring decisions based on a person's religion. I cannot, therefore, vote for H.R. 2123 because it undermines fundamental civil rights protections against employee discrimination for Head Start teachers and volunteers. Since the inception of Head Start, this civil rights protection has allowed for religious organizations to participate in programs, while maintaining constitutional and civil rights standards. I appreciate the important contributions faith based organizations make to the education of thousands of students, through participating in the Head Start program. If the repeal of existing civil rights protections becomes law, then teachers or parent volunteers could lose their jobs based solely on their religion.

The Head Start program provides essential early childhood education services, and I will continue to support its important work. I cannot, however, vote for this legislation that permits discrimination in hiring.

Mr. Speaker, on September 6, I was surveying damage from Hurricane Katrina in Louisiana and failed to cast recorded votes on rollcall votes 454 and 455. Had I cast my votes, I would have voted ``yes'' on both.

Last week, I traveled to Louisiana with a constituent who is the president and founder of Heart to Heart International, Dr. Gary Morsch. Heart to Heart International, a Kansas-based humanitarian organization that serves the needs of the poor and provides aid to those most affected by natural disasters, has established a forward distribution center in Jefferson Parish, Louisiana, to distribute aid to the refugees of Hurricane Katrina. A team organized by Heart to Heart International traveled to this forward distribution site to deliver

aid, determine assignments for possible future teams, and prepare to receive future shipments to deliver to agencies sheltering refugees.

I deeply appreciate the work of private relief organizations like Heart to Heart International that play a critical role in the public- private response to natural disasters. While private organizations do their part for disaster relief, government at every level needs to work together to plan for inevitable natural disasters and coordinate relief efforts. I will continue working within Congress to ensure that the federal government's response to future disasters, whether natural or man-made, is as efficient and timely as possible.

Mr. Speaker, on Thursday, July 21, 2005, I voted against final passage of H.R. 3199, providing for the reauthorization of 16 sunset provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) Act of 2001.

Following the horrific and devastating attacks of 9/11, Congress acted swiftly by enacting the PATRIOT Act just six weeks after the terrorist attacks. I voted for the original PATRIOT Act because it gave our intelligence and law enforcement agencies the tools they needed to fight the war on terrorism. Congress recognized, however, the need to review certain provisions of the Act that could change our way of life and liberty in this country. It is not a good idea to make permanent policy for the United States concerning our fundamental rights and freedoms during extraordinary times of war. We must never allow the terrorists to alter the freedoms that define our country and make us the greatest Nation in the world.

While I still believe that the 16 provisions of the Act are necessary to protect the Nation against future terrorist attacks, I do not believe that it is necessary or strategic to make these provisions permanent. We have learned that the terrorists will change the nature of their attacks in whatever way is needed to try and overcome our security forces. It is essential that our investigative agencies have the ability to review these laws over time to make adjustments according to our ever-changing security needs.

The PATRIOT Act should be a living document that Congress reviews frequently to correct any problems or abuses and strengthens when there are indicators that additional tools are needed to protect Americans in the war on terrorism.

While our national security must be protected, we can and must fight terrorism without violating the very constitutional protections that define us as a nation and make us the greatest country in the world.

Congressional oversight of the PATRIOT Act is essential.

Mr. Speaker, on January 26, 2005, I inadvertently failed to cast a recorded vote on rollcall vote 11, concerning the Crowley amendment to H.R. 54. Had I cast my vote, I would have voted ``aye.''

On Sunday, March 20, I was unable to get a flight to Washington, D.C., after learning that there would be a recorded vote on legislation regarding Terri Schiavo, which occurred at 12:45 a.m. on March 21, 2005. Had I been present, I would have voted ``no'' on rollcall vote 90, concerning S. 686.

On April 27, 2005, I accidentally voted ``no'' on rollcall vote 142, the Jackson-Lee amendment to H.R. 748, when I had intended to vote ``aye''.

On May 4, 2005, I inadvertently failed to cast a recorded vote on rollcall vote 156, concerning H. Res. 195. Had I cast my vote, I would have voted ``aye.''

On May 23, I inadvertently failed to cast a recorded vote on rollcall vote 200, concerning H.R. 744. Had I cast my vote, I would have voted ``aye.''

On June 8, I inadvertently failed to cast a recorded vote on rollcall vote 235, concerning the Chabot amendment to H.R. 2744. Had I cast my vote, I would have voted ``no.''

Mr. Speaker, I rise today to pay tribute to Norbert Dreiling, of Hays, Kansas, who died on August 1, 2005.

Norbert Dreiling will long be remembered in Kansas as one of the fathers of the modem Kansas Democratic Party. As Representative Jerry Moran of Kansas said in his very generous tribute to Norbert Dreiling before the House on July 19, 2004, ``Through years of dedicated service, he breathed life into a struggling Democratic Party and established a lasting two-party system in Kansas.'' Under Chairman Dreiling's leadership, for the first time an incumbent Republican governor of Kansas was defeated by a Democratic challenger, Robert Docking, who was elected governor four times--the most terms ever served by a governor in Kansas. In addition to his extensive service to his community, State and nation, Norbert Dreiling also maintained a successful law practice and was instrumental in promoting the Volga- German heritage of Hays and Ellis County, Kansas.

Norbert Dreiling was born April 7, 1925, in Gorham, Kansas, and married Donna Jean Myerly in 1948. He was a member of St. Joseph Catholic Church, St. Joseph 3rd Degree Knights of Columbus and 4th Degree Bishop Cunningham Assembly Knights of Columbus, all of Hays. He was a graduate of St. Joseph Military Academy, Fort Hays State University and Washburn University Law School. He was senior partner in the law firm of Dreiling, Bieker and Hoffman, Hays. He was elected and served two terms as Ellis County Attorney, served as Kansas State Democratic Chairman from 1966 to 1974, and led several delegations to the National Democratic Conventions. He was a member of the Phi Alpha Delta law fraternity. He was involved in numerous non-political civic and educational activities. He was a charter member of Hays Kiwanis Club, a charter member of the Volga German Society of Hays, a Fort Hays State University Endowment Association Trustee and the Washburn Law School Board of Governors. He was a member of the Board of Directors of St. Anthony Hospital and Farmers State Bank, both of Hays. He helped establish and create St. Johns Rest Home of Victoria and Hays, serving on the board for many years. He was the recipient of the Distinguished Alumni Award from Fort Hays State University. He was honored by TMP- Marian High School in Hays and was the first recipient of the St. Thomas More Friend For All Seasons Award. Survivors include his wife, Donna Jean Dreiling, of the home; two sons, Mark Dreiling, Denver, Colo., and Curt Dreiling, Estes Park, Colo.; two daughters, Jan Schuster, Bradenton, Fla., and Kathy Dreiling,

Colorado Springs, Colo; and 10 grandchildren, Kimberly McDaniels, Brian Schuster, Jeffrey Dreiling, Scott Schuster, Jackson Dreiling, Nicholas Dreiling, Krysta Dreiling, Sean Dreiling, Amy Schuster and Sam Talarico.

Mr. Speaker, longtime Kansas Democratic Party activist Glenn Staab of Hays, posted a blog on the state party's website on the day of Norbert Dreiling's death that provides a fitting summary of the life and legacy of former Chairman Dreiling. I am reproducing it in the Record here in its entirety, followed by Topeka Capital Journal coverage of his death.

Norbert Dreiling passed away today (8-1-05). Norbert was my

first political hero. He was very generous with his time when

it came to talking politics. I never visited him without

taking pen and paper. Some of those notes are over thirty

years old. Following is the column I wrote about Norbert that

appeared in the Hays Daily News on November 23, 2003.

President John Kennedy was assassinated 40 years ago last

Saturday. It was my generation's ``moment in history.'' Every

generation has a, ``Where were you when . . .?''

I consider JFK's assassination my first political

encounter. It is my first memory of a President, and the

tragedy as it unfolded was my first taste of national

politics. Since I'm always looking for an excuse to visit

with Norbert Dreiling, the infamous anniversary gave me a

reason to sit down and speak with him about his relationship

with President Kennedy.

Norbert Dreiling was the Ellis County Democratic Chair when

a Senator from Massachusetts was considering a run for

President. He was Democrat, and he was Catholic. The Kennedy

people were looking for a ``bell-weather'' county to test the

waters. Norbert had already been working with the Kennedy

campaign for some period when our heavily Democratic, heavily

Catholic county was chosen as that county to host a banquet.

The event was sold out and exceeded Kennedy staff's

expectations. Kennedy's announcement for President followed

soon after. Norbert became very familiar with the inner

circle of the Kennedy campaign, family and presidency. After

Kennedy was elected, Norbert paid a visit to the newly

elected President. Ted Sorensen, a member of the inner

council, spread a large map of the United States to show

Norbert the states and counties that had voted for JFK.

Sorensen said, ``Ellis County was regarded highly by those

who were active in this campaign.''

Kennedy's visit was the first Presidential hopeful's visit

to Hays since Teddy Roosevelt in 1903. So, to date, three

Presidential hopefuls visited Hays in the 1900's and were

successful in their electoral bids: Roosevelt in '03;

Kennedy in '59; Al Gore in '88 who won in 2000, but was

not allowed to serve his term.

Norbert was the Kansas Democratic State Chair as Robert

Docking was successful in four consecutive two-year terms for

Governor; which will never happen again, unless the state

constitution is changed. It was during this time that I

started reading Norbert Dreiling quotes and taking a real

interest in politics. I can remember thinking that I would

like to be that clever someday. I'm still waiting.

I remember sitting in Norbert's office listening to his

campaign stories. No one could tell a story better than he.

He could mesmerize an audience with his speeches. Today, he

battles against Parkinson's. His speech is halted and almost

a whisper, but that hasn't hindered his opinions.

His disdain of the current Bush administration is clear. He

detests the ``permissive binge'' of big corporations. He adds

that those who profess to support the constitution ``give

little credit to those who hold the country together.''

When asked about present day politics, he said, ``The

politics of this era should reflect the greatness of this

country. There is much material wealth that could be

available to assure that good could be done--especially for

the poor and the disabled and here we are in another war. One

asks if we did learn anything from Vietnam? The Balkans?''

To this day, Norbert is sought out for political advice.

Patrick Murray was hired as the Executive Director of the

Kansas Democratic Party last spring. The twenty-four-year-old

Maryland Democrat was given instructions by state officials

to visit with Norbert for his opinions and history of Kansas

politics. Murray said of his visit, ``You can't plan for the

future if you don't understand the past. The insight that Mr.

Dreiling gave me on state and national politics was beyond

measure.''

I asked Norbert for examples of people that give him credit

for their political involvement. He said, ``A lot of people

say a lot of nice things.''

When asked about family coming home for the holidays, he

related that all his kids were coming home. It was a chance

for us to agree on something besides politics. I told him to

say ``Hi'' to his daughter Kathy, relating to him that she is

still the best ``Dolly'' I've ever seen. He told me that

although her lead performance as a junior at Hays High School

in ``Hello Dolly'' was over two decades ago, people still

stop him and tell him the same thing I did.

This Thanksgiving I am thankful for family and friends, but

I am also thankful for Norbert Dreiling and his influence in

my love of politics.

Our community owes much to Norbert Dreiling. He has been

generous in countless ways. And one afternoon in November

1959, he brought a touch of Camelot to Hays.--Glenn Staab

Mr. Speaker, Hurricane Katrina is the largest natural disaster in the United States in decades, impacting large parts of Alabama, Florida, Louisiana, and Mississippi. There has been enormous damage to homes and businesses in the Gulf Coast region, as well as a significant loss of human life. Both the mayor of New Orleans and the governor of Louisiana now estimate that the number dead in New Orleans alone could be in the thousands. That estimate, if correct, would make Katrina the Nation's deadliest natural disaster since the 1906 San Francisco earthquake and fire, which killed up to 6,000 people.

As co-chair of the Congressional Hazards Caucus, I unfortunately know firsthand how damaging natural disasters can be. While I am devastated by the enormity of this tragedy, I know that our faith, tenacity and determination ensure that we will work, as a Nation, to do all that we can to stem the crisis and help those in desperate need. Therefore, I rise today in full support of Congress's initial payment for disaster relief for the victims of Hurricane Katrina.

This supplemental appropriations bill contains $10 billion for the Federal Emergency Management Agency (FEMA) and $500 million

for the Department of Defense, for a total of $10.5 billion in relief aid. This funding is desperately needed. Currently, FEMA is spending $500 million a day to aid victims. If this supplemental spending bill is passed, the $10 billion allotted to FEMA will enable it to assist the people affected by the hurricane for another 20 days. This aid will focus on critical areas, including public health and sanitation, public safety, housing, energy supplies, national transportation infrastructure, commerce, and the safety and adequacy of food supplies.

Hundreds of thousands of Americans have been devastated by Hurricane Katrina and are turning to their elected representatives for assistance. We must do all we can to ensure an immediate and thorough response to these needs, and I fully support the $10.5 billion supplemental appropriation for disaster relief.

Mr. Speaker, DR-CAFTA is good for our country, and good for Kansas. The market access provisions of the agreement will remove remaining trade barriers in the region that raise the cost of Kansas exports, and will keep Kansas exporters competitive internationally. According to the Department of Commerce's International Trade Administration, exports of manufactured and non- manufactured products from Kansas to the Central American region totaled $23 million in 2004. That figure will grow after the signatories to the agreement implement DR-CAFTA. For manufactured goods, duties on 80 percent of U.S. exports to the Central American region will be eliminated immediately, with the remaining duties phased out over a period of up to 10 years. Manufactured goods accounted for 89 percent of Kansas' exports in goods to the DR-CAFTA countries last year, and Kansas will continue to benefit under the market access provisions of DR-CAFTA.

Additionally, DR-CAFTA will open markets for American agricultural goods. For agricultural products, duties on over 50 percent of U.S. exports would be eliminated immediately upon implementation of DR- CAFTA, with the rest phased out over a period of up to 20 years. Together, the DR-CAFTA countries are Kansas' 11th largest market for crop exports. This agreement will benefit Kansas farmers.

As a transportation hub, the Kansas City metro area, which is ideally situated on the banks of the Missouri and Kansas Rivers and home to hundreds of miles of commercial rail lines and highways, will play a critical role in moving Kansas exports to market.

Finally, trade liberalization benefits American consumers. Greater movements of goods and services between the United States and other nations increases competition and applies downward pressure on prices, which will help keep inflation at historically low levels. Though the importance of international trade on subduing inflation should not be overstated, neither should it be dismissed. Increased competition, together with a reduction in production costs, can reduce the prices for consumer goods and services in our country.

The global integration of markets for goods and services, referred to as ``globalization,'' is a fact of modem life. As we enter the twenty- first century, the pace of globalization is accelerating. The United States has been a global leader in international trade for decades. And our country is well positioned to shape the direction of globalization if we continue to engage with the rest of the world.

In theory, international trade can raise standards of living and efficiently allocate resources between nations. In reality, the potential benefits and drawbacks of trade are usually addressed within the language of trade agreements. Each trade agreement that the United States considers entering into with our trading partners needs to be examined carefully on the merits of the agreement. While I have concerns with DR-CAFTA, I believe the potential benefits of the agreement outweigh its potential deficiencies. For that reason, I plan to vote in favor of DR-CAFTA.

Mr. Speaker, twenty years ago several of the DR-CAFTA countries, each of which has its own unique history and culture, were mired in civil war and suffering from deplorable human rights abuses. The region has come a long way over the last two decades, but there is more work to be done. By passing DR-CAFTA, we have an opportunity to help the region in its progress toward greater freedom and economic prosperity. As former President Jimmy Carter wrote in expressing his strong support for DR- CAFTA: ``For the first time ever, we have a chance to reinforce democracies in the region. This is the moment to move forward and to help those leaders that want to modernize and humanize their countries. Moreover, strong economies in the region are the best antidote to illegal immigration from the region.''

DR-CAFTA has the potential to create jobs in the region, raise standards of living for the citizens in the DR-CAFTA countries, and further stabilize what has been an unstable region. Defeat of this trade agreement will have devastating consequences for the region, which will likely lose textile and apparel jobs to countries with lower wages and weaker worker protections. Turning our backs on the DR-CAFTA countries is counterproductive, both for the Central American region and for America, while engagement holds the promise of future benefits in our hemisphere.

While DR-CAFTA will bring tangible benefits to both the United States and the Central American region, there are chapters in the agreement that could have been improved as this process unfolded. I am disappointed that there was not more consultation with Congress as the administration negotiated the agreement. Members of both parties have concerns regarding DR-CAFTA's labor provisions. Although the agreement subjects failure to enforce labor laws to binding dispute settlement, which could lead to fines or sanctions, greater protections of workers' rights should have been made subject to binding dispute settlement.

In addition, while Congress will provide $20 million in funding for capacity building efforts in the DR-CAFTA countries to help those nations implement and enforce the provisions of the agreement, $20 million is not enough. More funding will be needed in future years to help the DR-CAFTA countries enforce the laws that protect workers, including children, from potentially dangerous work conditions.

I am also disappointed that the agreement does not confront the reality of globalization's negative consequences here at home. Trade agreements need to do more to help workers transition from jobs in distressed industries to new jobs in areas that stand to benefit from our modern economy. I would like to see greater efforts to retrain displaced workers. I look forward to working with the administration to help American workers remain competitive and employed well into the twenty-first century.

Mr. Speaker, globalization is a fact of life in our country and the rest of the world in 2005. It is part of a broad, long trend toward global economic integration. The United States should embrace its historic role as a global leader in international trade and seek to shape the path of a trend that will continue to unfold ready or not. The United States has the strongest economy and the best workforce in the world. We are well positioned to succeed throughout the twenty- first century. DR-CAFTA is not a perfect trade agreement. But it is a step in the right direction for the future of our country.

Mr. Speaker, I rise in support of the conference report on H.R. 6, the omnibus energy bill. H.R. 6 is an important step toward increasing our Nation's energy independence by investing in energy efficiency and alternative energy sources.

As a member of the House Renewable Energy Caucus, I support measures in H.R. 6 to encourage and increase the use of renewable and alternative energy sources. H.R. 6 includes important tax incentives for energy efficiency programs and renewable energy sources, such as wind and solar production. This measure also includes a tax credit of up to $3,400 for certain hybrid cars and trucks. As a cochair of the House Biofuels Caucus, I also support raising the renewable fuels standard to 7.5 billion gallons by 2012, which is more than triple the current amount.

Over the past several Congresses, there have been several issues that have continually blocked congressional passage of comprehensive energy legislation, and I commend the conference committee on eliminating these controversial provisions from this final conference report. H.R. 6 does not include a provision providing for drilling in the Alaskan National Wildlife Refuge (ANWR), which had been part of past energy legislation. This pristine 1.5 million acre coastal plain is often referred to as ``America's Serengeti'' because of the presence of caribou, polar bears, grizzly bears, wolves, migratory birds, and many other species living in a nearly undisturbed state. While some consider this area to be one of the most promising U.S. onshore oil and gas prospects, studies indicate that this area could only provide 6 month's supply of oil, 10 years from now, and consequently have no significant effect on our nation's dependence on foreign oil.

Past versions of the energy legislation have also contained a safe- harbor provision for producers of MTBE and other fuel oxygenates from product liability claims. Under previous energy bills, states and cities would have been prevented from bringing against potential offenders ``defective product'' lawsuits, which some cities have employed to recapture the cost of MTBE cleanups. The U.S. Conference of Mayors has stated that the cost of cleanup could run more than $29 billion. If our states and localities were forced to pay these costs, the real costs would be borne by taxpayers. I commend the conference committee for eliminating this costly provision, and not making taxpayers responsible for the actions of a few MTBE producers.

While I voted for H.R. 6, there are several provisions that concern me. The conference agreement fails to adequately address climate change by not including even the modest proposal adopted by the Senate. This provision, authored by Senator Chuck Hagel, would use tax credits to encourage, but not require, industry reductions in greenhouse gas emissions, including carbon dioxide. Furthermore, the conference agreement also requires an inventory of oil and natural gas resources in offshore areas, including areas now closed to drilling. I am concerned about this provision, because it could lead to opening these environmentally sensitive areas to offshore drilling. In addition, I am also disappointed that the final conference report did not include a ``renewable portfolio standard'' that would have required utilities to get 10 percent of their electricity from alternative energy sources, such as wind and solar power, by 2020.

While this is not a perfect bill, I believe it is an important first step in creating a comprehensive energy policy that invests in energy efficiency and alternative energy sources. We owe it to our children and grandchildren to develop and implement energy policies, which will decrease our dependence of foreign oil and that protect consumers, communities, and environmentally sensitive areas.

Mr. Speaker, as the Library of Congress continues its efforts to memorialize American veterans through the Veterans History Project, I rise today to pay tribute to and honor 59,337 men and women in Kansas City who proudly served the home front and their Nation in a time of dire need.

In what is known as the ``Fairfax District'' in Kansas City, Kansas, North American Aviation of Kansas, a B-25J ``Mitchell'' bomber production plant, built 6,608 of the 9,817 bombers used during World War II. This number represents 67 percent, or 2 out of every 3 B-25J bombers built for the war effort. The women and men working in this factory sacrificed their sweat, blood, and tears to ensure that the United States remained strong and equipped during this fight.

As thousands and thousands of our citizens joined in the fight and left their jobs to serve in uniform, factories all across the country were facing a labor shortage, at the same time they were being called upon to produce vital equipment needed by our troops. In order to fulfill this need and do their part in the war effort, women joined the workforce and kept our factories busy producing machinery for the military effort, like the bombers produced at North American Aviation of Kansas. As some of the first women to join the industrial revolution, their hard work and dedication earned these women the nickname ``Rosie the Riveter.'' Working hard right beside these ``Riveters'', men embraced their new colleagues as coworkers and equals, ripping down previous barriers of gender-based stereotypes in the work place.

As the United States continues to fight injustice around the world today, it is important to remember the courageous production workers who continue to give our military the equipment they need to stay safe and continue to prevail in the most dangerous of encounters. Mr. Speaker, I thank the ``Bomber Builders'' of the North American Aviation-Kansas aeronautical production plant who began today's tradition of continued sacrifice by offering their dedication, pride, and unwavering support for their nation during World War II when our Nation and the cause of freedom needed them the most.

Mr. Speaker, I rise today to congratulate three students in the Third District of Kansas who are being honored for their community service, leadership skills, positive attitudes and academic achievement. On August 10, 2005, the Comcast Leaders and Achievers Scholarship Program will award these students with grants to aid their pursuit of higher education. These students were nominated for this scholarship by the principals of their respective high schools, and they have distinguished themselves, their schools, and their community by being selected from a nationwide field of nominees. It is my honor to recognize each student, their school, and their hometown by listing them in the Congressional Record.

Samantha Brown, Olathe Northwest High School, Olathe, KS.

Adam Doll, Olathe South High School, Olathe, KS.

Lorie Wadell, Olathe North High School, Olathe, KS.

Mr. Speaker, last Sunday's edition of the New York Times carried a lengthy analysis of the recent service expansions into new media delivery outlets

undertaken by the Lawrence Journal-World, a daily newspaper published in my congressional district.

The Lawrence Journal-World, long owned and managed by the Simons family, epitomizes locally based newspaper publishing in America. While many Kansas papers in neighboring communities have been purchased and reworked by out-of-state media conglomerates, the Journal-World has remained independent, feisty, and unique. While I have not always agreed with the conclusions advocated by the paper's management in its editorial columns, I respect the Simons' family's commitment to the strength of the Lawrence community, the advancement of the University of Kansas, and the independence of a free and activist press in the United States. I commend the New York Times' coverage of the Journal- World to my colleagues, Mr. Speaker, and I hope it presents a model that other newspaper publishers nationwide will seek to follow.

[From the New York Times, June 26, 2005]

The Newspaper of the Future

(By Timothy L. O'Brien)

Every Little League player in this town of about 85,000

people can be a star. Regardless of how he or she hits or

fields, each tyke and teenager is eligible for a personalized

electronic trading card--replete with a picture, biography,

statistics and an audio clip of the player philosophizing

about the game--that can be posted on the Web site of the

local newspaper, The Lawrence Journal-World.

Lawrencians buying tickets for University of Kansas

football games can visit the same site, LJWorld.com, and find

photographs offering sightlines from each of Memorial

Stadium's 50,000 seats. Law aficionados can find transcripts

of locally significant court cases posted on the site and

participate in live, online chats debating the pros or cons

of some cases--sometimes with experts who are involved in the

proceedings.

A related Web site, lawrence.com, is aimed at college

readers. It allows visitors to download tunes from the

Wakarusa Music Festival, find spirited reviews of local bars

and restaurants and plunge into a vast trove of blogs,

including the Gay Kansan in China Blogger, who recently had

his first ``disgusting'' experience with a woman, to the Born

Again Christian Blogger, who offers videotaped huzzahs to the

Nascar legend Dale Earnhardt Sr.

The steward of this online smorgasbord is Dolph C. Simons

Jr., a politically conservative, 75-year-old who corresponds

via a vintage Royal typewriter and red grease pencil while

eschewing e-mail and personal computers. ``I don't think of

us as being in the newspaper business,'' said Mr. Simons, the

editor and publisher of The Journal-World and the chairman of

the World Company, the newspaper's parent. ``Information is

our business and we're trying to provide information, in one

form or another, however the consumer wants it and wherever

the consumer wants it, in the most complete and useful way

possible.''

Owned by the Simons family since 1891, The Journal-World is

a small-town paper emphasizing small-town news, but it is

hardly restrained by a small-town mentality. Indeed, at a

time when newspapers big and small are facing financial and

journalistic crossroads, media analysts say The Journal-

World, with a circulation of just 20,000, offers guidelines

for moving forward.

The Simons family, through the World Company, enjoys an

unfettered and often criticized media monopoly in Lawrence.

But the family has used that advantage to cross pollinate its

properties, ranging from cable to telephone service to

newspaper and online publishing, and to take technological

and financial risks that other owners might have avoided.

Mr. Simons and his associates describe their overall goals

as a shared belief in quality, a deep attachment to Lawrence

as a community and a constant reinvention of their business's

relationship with readers, viewers and advertisers.

``We believe that journalism has been a monologue for so

long and now is the perfect time for it to become a dialogue

with our readers,'' said Rob Curley, 34, the World Company's

director of new media. ``We want readers to think of this as

their paper, not our paper.''

Lawrence has a long history as an independent, contrarian

town. Founded in 1854 by New England abolitionists, it became

one of the most violent, bloody battlegrounds in the slavery

debate and was burned to the ground by pro-slavery raiders in

1861.

The University of Kansas opened its doors here just after

the Civil War; women made up almost half of its first class.

Haskell Indian Nations University, a college for Native

Americans, opened here in 1884. After Mr. Simons's

grandfather arrived in town more than a century ago, he

bought the local paper for $50.

Today, Lawrence is a regional anomaly, anchoring a

Democratic county in a solidly Republican state. Its large

student population brings spunk to Lawrence, the university

adds academic sophistication and sports fanaticism, and the

town, dotted with funky restaurants and boutiques, has become

a favorite of artists and activists.

Lawrence is also peppered with tidy, attractive homes and

schools that draw middle- and upper-class families headed by

professionals who commute to work in Topeka and Kansas City.

``It's a real town with a real soul where people like to get

involved,'' said Paul Carttar, a Lawrence native who is

executive vice chancellor for external affairs at the

University of Kansas. ``People here care about what Lawrence

will become.''

Mr. Simons says his family takes its Lawrence roots

seriously. ``My dad told me that if you take care of

Lawrence, Lawrence will take care of you,'' he said.

To that end, Mr. Simons has been an aggressive consolidator

of local news and information services while resisting what

he described as repeated offers over the years from larger

companies wanting to buy him out. He has also been an early

adopter of new technologies. The World Company began laying

cable in 1968 and offered cable programming to residents in

1971, paying for the expansion with profits from The Journal-

World--long before most larger media companies would embrace

cable.

Today, about 80 percent of homes in Lawrence have cable

connections. The Journal World began publishing on the

Internet in 1995, the same year that Sunflower, the broadband

subsidiary of the World Company, first offered cable modems

to customers. In 1999, the newspaper and its television

station began sharing talent, using reporters to write for

The Journal-World and appear on the company's news stations.

``We're not afraid to jump outside of the box, and that's

because of who our owners are,'' said Patrick Knorr, 32,

Sunflower's general manager, who also oversees strategic

planning for the World Company. ``They're determined not to

lose because they were asleep at the switch.''

Mr. Knorr said that World, which employs a total of about

600 people, did not try to offer new content to broadband

subscribers until it had solid relationships with its

customers and a robust pipeline through which it could pump

media offerings.

``Content is absolutely critical and king,'' Mr. Knorr

said. ``But consumers have more power than ever over who gets

crowned.''

On a sweltering midsummer morning in 2001, Mr. Simons

convened most of his media staff in the basement of a

handsomely restored former post office at the comer of New

Hampshire and Seventh Streets. The building was World's new

``converged news center,'' where the company's television,

newspaper and online staffs would all be housed.

Mr. Simons told his editors and reporters that they were

going to do more than merely work shoulder to shoulder; they

were going to share reporting assignments, tasks and scoops--

whether they liked it or not.

Many did not like it at all, and some World reporters say

they sometimes still feel taken advantage of--when they are

asked to squeeze multiple print, television and online duties

into the course of a single day. Print reporters and their

editors have, at times, been reluctant to share scoops or

ideas with their television counterparts, and vice versa. But

many reporters also said that, over time, they have adapted.

``You can really teeter on the edge of, `I'm not enjoying

this and it's not fair,' to, `This is one of the coolest

things I've ever done,'' said Deanna Richards, a television

reporter who works in World's converged newsroom. The company

currently has 81 news employees, an unusually large number

for an operation of its size.

In 1993, Mr. Simons recruited Bill Snead, an award-winning

photographer from The Washington Post, to oversee the

Journal-World newsroom. Now a senior editor, Mr. Snead, 67,

has written, photographed and shot video for feature

assignments on topics such as farm strife, cheerleaders and

cowboys. He said that while he had never shot video before

arriving at The Journal-World, he had no trouble adapting.

``Technology is our servant; it's our valet; it gets our

stuff out there--but it's still about the content,'' he said,

adding that his company's online and cable properties have

helped to forge a closer relationship with readers. ``If you

show people respect and don't treat them like a novelty,

you'll have free rein. That's what we're doing here.''

For as ambitious and creative as the Journal-World team is,

the newspaper still offers a menu of stories that is

relentlessly, sometimes numbingly, local. Weather, local

trials, local sports and other local comings and goings

dominate. Some critics say that controversial topics, like

divisive land-use debates, are soft-pedaled in the paper's

pages.

``They control the dialogue on local news,'' said Charles

Goff III, 46, a political activist and artist in Lawrence.

``Every viewpoint goes through their filter and is tied to

the Chamber of Commerce and the moneyed elite.''

Mr. Goff conceded, however, that he was unaware of the

depth of offerings on the Web site of The Journal-World. He

also said that while he felt that the paper's editorial

and opinion pages were staunchly and unsparingly

conservative, he thought that the news pages usually

offered more balanced viewpoints.

Mr. Simons and his news staff vehemently deny that

controversial topics are sidestepped.

And while some residents bemoan The Journal-World's local

navel-gazing, those overseeing the publication are

unapologetic and enthusiastic examiners of all things

Lawrence. ``When the space shuttle blew up, we didn't have it

on our home page; when the war in Iraq started, we didn't

have it on our home page,'' Mr. Curley said. ``It's focusing

entirely on local stories that we think made our Web traffic

go crazy.''

Mr. Simons recruited Mr. Curley to the World Company three

years ago, when The Journal-World's Web site snared about

500,000 page views a month. Mr. Curley says the number is now

about seven million. The company said its online operation

was losing about $15,000 a month when Mr. Curley arrived; it

expects the online business to become profitable this year.

Ralph Gage, World's chief operating officer, is a no-

nonsense taskmaster whom Mr. Simons deputized to make sure

the company's trains ran on time. Online revenue comprises

only about 1.5 percent of World's total revenue, he said,

while the bulk comes from broadband, at 53 percent, and the

newspaper operation, at 37 percent.

But Mr. Gage says the company expects newspaper revenue to

slacken over time, with online ventures eventually being a

much more significant source of sales. For that reason, World

has been willing to use its broadband funds to underwrite its

online ventures until the online profits become more

meaningful, probably by the end of the decade.

According to a recent survey by Nielsen/NetRatings,

newspaper Web sites nationwide had a 12 percent increase in

unique visitors from May 2004 to May 2005, with a significant

portion of readers aged 35 to 44 switching from a newspaper

to the same paper's Web edition for their daily read.

``Newspaper circulation has been tanking since the 60's and

now we're finally growing our audience online, so when I hear

people complain about having to give their content away for

free on the Internet I think they just don't get it,'' Mr.

Curley said. ``I'm a capitalist, and I respect people who

want to make a ton of money, but, dude, I'm a journalist and

I want to build cool things.''

Of course, building cool things simply for the sake of

building cool things suffered a notable national flameout

during the dot-com bust. But through the newspaper Web site

and lawrence.com, Lawrence comes alive in a fashion rare for

a town of its size. (Lawrence.com is also published as a

print weekly.)

The town, once home to the poet Langston Hughes and the

novelist William S. Burroughs, has a rich literary tradition.

Journalists at World are assembling a lushly embroidered Web

site devoted to Mr. Burroughs that includes rare letters,

photographs and other archival material.

During a local election, a list of questions reporters had

asked of all candidates as part of a voter's guide were

posted online. That allowed voters to answer the same

questions themselves. Then they could use an online tool to

find the candidates whose answers most closely matched their

own--an example of civic journalism on steroids.

The paper also routinely files local freedom-of-information

requests and uploads piles of public records to its Web site.

In 2003, World installed about 30 wireless hot spots around

Lawrence. That same year, it began sending daily content to

cellphones. For example, subscribers can have real-time

scores and statistics from the University of Kansas's

football and basketball games delivered on demand.

The company has begun offering daily ``podcasts'' of news

and other information to Apple iPod owners or anyone else

carrying an MP3 player. It plans to offer a service that

automatically loads information onto a docked MP3 player in

the early-morning hours before students head to school.

About a third of the 18 employees in the online operation

are interns, and their presence allows Mr. Curley to have

data, video, photos and other material collected and uploaded

at little cost, a process he grinningly refers to as

``internology.''

``People come here from thousands of miles away expecting

to see something very high tech and expensive, but a lot of

what we do we do on the cheap,'' Mr. Curley said. ``So it

just amazes me when people say they can't do what we do

because they don't have the resources.''

Still, it is financial resources, not content, that is

behind the handwringing in newspaper circles everywhere.

While print advertising stagnates or slips, it is not yet

being replaced in a meaningful way by online advertising

revenue--especially at companies that lack a source of bridge

financing like World's broadband operation. Although

journalists may cringe to hear it, the near-term battle for

corporate survival is likely to be waged and won primarily by

inventive business and advertising teams at media companies.

The World Company's advertising staff said that its sales

force had embraced convergence enthusiastically and that

offering customers multiple advertising platforms--on TV, on

the Internet and in print--has become a strong pitch.

But the company is still finding it difficult to persuade

readers to interact with online display ads. And, while

willing to adapt to news advertising demands, the company

refuses to turn its Web site into an advertising billboard,

believing that the clutter would undermine the quality and

integrity of its journalism.

``I think as we've converged the content we're going to

converge the advertising,'' said Dan Simons, president of the

company's broadband operations and a son of the chairman. ``I

think you'll have to adapt to how buyers want to convey their

messages so we're not just sellers of space and time. We have

to be both advertisers and public relations advisers so we

can help companies create their messages.''

As effervescent as the new media are in Lawrence, analysts

balk at making grand extrapolations from World's efforts.

``It's a market dominated by one company so you have to be

very careful when holding them up as a paragon,'' said Howard

Finberg, director of interactive learning at the Poynter

Institute, which operates a Web site devoted to journalism.

``Are they creative? Without a doubt, but I'm cautious about

it being seen as a single solution or a model.''

Others are more laudatory but equally cautious about

Lawrence's online innovations. ``Nobody else is close to

doing what they've done,'' said David Card, a new-media

analyst at Jupiter Research. ``But you also wouldn't

necessarily be able to duplicate what they're doing in towns

like San Francisco or New York.''

Dolph Simons, who writes a cantankerous Saturday column

that draws barbs from Lawrence's liberals, is a gentle, self-

effacing man who still serves Thanksgiving turkey to his

newsroom employees. He says he considers himself a ``little

fish in a big pond'' and is reluctant to be seen as a know-

it-all by colleagues and competitors in the news business.

Even so, his opinion about the future of the news business

is clear.

``I'm terribly concerned about readership in the country

and I think we all have to learn new things as fast as we

can. Otherwise other people are going to beat us to it,'' he

said. ``We need to be driving with our brights, because if

we're driving with our dims somebody's going to come in from

the side of the road and knock us off.''