October 20, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 1995 the years. And, in recognizing these sacrifices, active in public life and still have much to con- tional nonprofit organization that is a leading that all Americans today to exercise their tribute to the quality of life in Morris County, authority on flexible work options. The First democratic rights, including free speech, and NJ. I, for one, will still count on his friendship Annual Part-Time Professionals' Day recog- the right to vote. and good counsel. I will miss him as a fellow nizes the nearly 4.6 million men and women The Allied Veterans Council of Cudahy has elected official, his strong, independent views, who currently work in part-time professional made a wise choice naming Bill Crivello Vet- his dry humor and unfailing dedication to the jobs. eran of the Year. Bill, his wife, Gertrude, and Jeffersonian proposition ``that government Part-time workers comprise a diverse seg- their children and grandchildren should all feel which governs least, governs best.'' ment of the work force which includes men a sense of pride in receiving this honor. f and women in search of nontraditional em- Bill, on behalf of our area's veterans, and ployment schedules to accommodate chang- your friends and neighbors, I encourage you HEALTH OF OUR CITIZENS AT ing high-tech work environments and family to keep up the great work. As you are proud RISK priorities. These individuals include parents of our veterans, they, too, are quite proud of seeking better balance between work and you. HON. ROBERT T. MATSUI family needs, retirees interested in continuing f OF CALIFORNIA employment, students, and others pursuing IN THE HOUSE OF REPRESENTATIVES outside interests such as volunteer opportuni- ASSEMBLYMAN ARTHUR ALBOHN: ties in our communities. PUBLIC SERVANT Thursday, October 19, 1995 More than 80 percent of the Association of Mr. MATSUI. Mr. Speaker, today, we are Part-Time Professionals members live in the HON. RODNEY P. FRELINGHUYSEN not making health care policy. We have taken Washington metropolitan area. These mem- bers and others represent a growing segment OF NEW JERSEY a number, randomly selected by the Budget of the work force which I am honored and de- IN THE HOUSE OF REPRESENTATIVES Committee, and devised a mechanical com- putation to reach an arbitrary $270 billion goal. lighted to recognize as valuable professionals Thursday, October 19, 1995 In the process, we have placed the health of in the American workplace. Mr. FRELINGHUYSEN. Mr. Speaker, today, our citizens severely at risk. f I rise to pay tribute to a good friend and The United States is renowned for its health STUDENT LOAN PROPOSAL HURTS former colleague, Assemblyman Arthur Albohn care. Our hospitals are considered the finest MIDDLE CLASS of Hanover Township who is retiring from the in the world. This is because we, in America, New Jersey General Assembly after 16 years place a unique value on each, individual life. of dedicated service. It doesn't matter who you are, how old you HON. TIM ROEMER Having served with Art in the Assembly for are, or what you have chosen to do with your OF INDIANA 11 of those years as the junior member of the lifeÐeveryone deserves quality health care. IN THE HOUSE OF REPRESENTATIVES 25th Legislative District, I must say that it was Under the Republican plan, this value will Thursday, October 19, 1995 difficult referring to oneself as a fiscal conserv- be challenged. Hospitals will no longer have Mr. ROEMER. Mr. Speaker, last month the ative while sitting next to him in the Assembly the resources to provide quality care, and ill education committees of both bodies of Con- Chamber. Art has voted ``no'' on so many people of all ages will lack the security of gress reported their respective versions of the spending bills during his career that he makes knowing that everything possible is being done budget reconciliation bill. Unfortunately, these the 104th Congress look like the previous for them. proposals would harm our investment in edu- forty. In the process, he earned the respect of Moreover, the elderly will not be able to live cation. Although the proposals are slightly dif- his colleagues, the appreciation of his con- out their final years in comfort. The vast ma- ferent, their impact is the same: They will raise stituents and the admiration of all New jority of senior citizens in this country are not the cost of college and ultimately deny access Jerseyans. wealthy, and new costs imposed on necessary to higher education to thousands of American He was elected to the General Assembly in medical services will be prohibitively expen- families. 1979 after serving on the Hanover Township sive. The question we must answer is whether Instead of making a college education more Committee for 27 years, including 5 terms as a civilized society has a role to play in improv- accessible and affordable, the budget rec- Mayor, 18 years as the Director of Finance ing the lives and health of its older members. onciliation proposals would cut more than $10 and 12 on the Sewerage Authority. In the past, we have answered this question in billion from student loans over the next 7 However, Art's forte was developed earlier the affirmative; today, the Republicans have a years. One proposed change to the student in life during his education in New York. Born different response. loan program is a new tax on colleges and in Queens, Art graduated from Columbia Uni- The Medicare system has been subject to universities based on the volume of guaran- versity and earned an additional degree in careful reform virtually every year since its in- teed loans used by their students. Twenty mil- Chemical Engineering. Since that time, Art ception. These changes have been deliberate lion students enrolled at more than 7,000 had worked in chemical engineering and man- and grounded in thoughtful policy. Reforms schools would be adversely affected by this agement consulting for Goodyear, Rayonier, have been made with the health of American proposal each year. Celanese and more recently retired from the citizens in mind. The proposed student loan tax would force Komline-Sanderson Engineering Corporation I am saddened to see that the bill before us schools to increase tuition or cut back in other of Peapack-Gladstone. is not based on the same honorable values. services to pay for this fee. Such a tax not Art has utilized his proficiency in this field Instead, it represents a mathematical solution only penalizes students, but also unfairly im- while serving as Chairman of the Assembly to a cold, mechanical $270 billion challenge. pacts schools that admit students who need fi- Solid and Hazardous Waste Committee and Calculations were made devoid of reason, re- nancial assistance. College students and their as a member of the Assembly Local Govern- search, and compassion. Qualify health policy families now have more debt than ever before, ment Committee and New Jersey Commission played no role. Our elderly and all American and it has become increasingly difficult for stu- on Science and Technology. As former col- people deserve more. dents and their families to afford college. For leagues in the Assembly, Representatives JIM f many middle-income families college soon will SAXTON, DICK ZIMMER, BOB FRANKS, FRANK be out of reach financially. LOBIONDO and BOB MENENDEZ can each attest FIRST ANNUAL PART-TIME I strongly oppose the proposed changes to Art's commitment to legislation based on PROFESSIONALS’ DAY and other savings taken from the Student common sense and sound science. Loan Program which would increase the tax Anyone who knows Art Albohn knows that HON. JAMES P. MORAN burden of the middle class. As written, the stu- he could not have been so successful without OF VIRGINIA dent loan changes represent yet another slap the love and support of his wife of 51 years, IN THE HOUSE OF REPRESENTATIVES at middle-class working Americans who must Regina, who has been at his side and often rely on Federal student loan programs to help Thursday, October 19, 1995 out in front during his political career. As far finance their children's college education. as we know, Regina is the only person to Mr. MORAN. Mr. Speaker, it is with great For the benefit of my colleagues, I am in- whom Art has never said ``no''! pleasure that I rise today in recognition of the serting in the RECORD an editorial written by Although they will want to spend time with First Annual Part-Time Professionals' Day. the president of the University of Notre Dame, their three children and two grandchildren, I This day was brought to my attention by the Rev. Edward A. Malloy, which appeared re- have no doubt that Art and Regina will remain Association of Part-Time Professionals, a na- cently in the Chicago Tribune. Rev. Malloy E 1996 CONGRESSIONAL RECORD — Extensions of Remarks October 20, 1995 points out that taxing higher education is in- The committee is seeking an easy way to company, and the first thing the purchasing deed shortsighted. Such action by Congress meet its budget obligations by imposing a company, Maxxam, did was to terminate the will make the American dream of a college tax on the nation’s higher education system. pension plan that Pacific Lumber had provided education for middle-class families nothing Such a tactic is more than simply misguided, it is wrong, Higher education, including stu- for its employees. more than a mirage that is completely out of dents and parents, already has been targeted Because legally they could not just walk reach for most families. for more than our fair share of budget cuts. away from the current retirees, they purchased [From the Chicago Tribune, Oct. 3, 1995] We face reduced funding for basic research, insurance from Executive Life to guarantee the FINANCIAL BURDEN—TAXING HIGHER for the humanities and the arts, a proposed retirement benefits. EDUCATION IS SHORTSIGHTED reduction in the interest subsidy for student Of course, Executive Life was chosen be- (By Edward A. Malloy) loans, elimination of the federal portion of cause it was the low bidder, but it was also Hidden away in recent news stories was a Perkins Loans as well as State Student In- the holder of a significant proportion of the report that the Senate’s Labor and Human centive Grants and consistent underfunding junk bonds issued in connection with the le- Resources Committee proposes to tax col- of the Pell Grant program. veraged buyout, as well as other questionable leges and universities based on the total vol- I believe I can speak with confidence when I say all of higher education would oppose an investments. Executive Life failed, as we all ume of guaranteed loans used by their stu- know, and the retirees were left holding an dents. If such a tax were enacted, many in- institutional fee on student loans. The gov- stitutions would face yearly assessments ernment simply should not be taxing univer- empty bag. running into hundreds of thousands, perhaps sities to pay for unwanted B–2 bombers and Because of abuses like that, in 1990, Con- millions, of dollars. Not only would colleges submarines. gress decided to limit the uses for which any and universities be burdened with yet an- Higher education is one of our nation’s company can put so-called excess pension other federally mandated fee, but we would most successful enterprises and most valu- assets. most certainly be required to meet increased able commodities. Why would Congress seek And we limited access to those funds solely federal budget regulation for the ‘‘loan tax’’ to undermine it by placing it out of reach for to allow the company to fund retiree health in- more and more families? To do so would be program. Such an effort by the committee surance programs, and imposed an excise tax flies in the face of congressional rhetoric egregiously shortsighted. American needs championing decreased taxation and less fed- the richness and diversity of its system of of 50 percent where the company ended the eral intervention in state and private mat- education. We must demand that Congress plan. ters. treat higher education as the national re- Now, I am told, the Republicans, in the Federal student loan programs exist to source and national treasure it is, and not as name of fiscal responsibility are seeking to ex- help students and their families afford col- some untapped ‘‘revenue stream’’ to sub- pand the uses to which corporations can put lege educations. Beyond a doubt, post-sec- sidize other federal spending. these fundsÐto any purpose they wish to ondary education is the most significant fac- f make of the funds. tor in determining future income. Anything They can use the funds to pay themselves which increases the cost to students, par- RECONCILIATION PROVISIONS ticularly to those middle- and lower-income even more lavish salaries or perksÐto acquire students who depend on student loans, will other companies and close other factoriesÐ have a significant impact on their ability to HON. MATTHEW G. MARTINEZ putting even more workers out of jobsÐor just start, or complete, college programs. OF CALIFORNIA to have a party. Students already are assessed a fee di- IN THE HOUSE OF REPRESENTATIVES Of course, they could use this excess accu- rectly on their federal student loans. An ad- Thursday, October 19, 1995 mulation to provide a COLA or adjust benefits ditional fee on institutions of higher edu- for participants, but I don't think that is likely. cation, as proposed by the Senate could have Mr. MARTINEZ. Mr. Speaker, as Will Rog- To the extent that a withdrawal is madeÐ several possible impacts on students—all of ers once said ``All I know is what I read in the them harmful. Many schools simply will pass the company making the withdrawal must pay newspapers'' and over the past few weeks, I income taxes on that amount. the fee along in the form of higher tuition. have been reading about a provision that is, I Others will handle the fee by reducing allo- And the bean counters over at Ways and cations for other priorities, such as under- am told, being wrapped into the massive rec- Means have translated this into a windfall for graduate teaching, financial aid or student onciliation bill that is coming to the floor short- the Treasury of $10 billion. services. Students will pay, in fact, they will ly. Well, based on what I have read about cor- pay twice—once directly, once indirectly. Last month, after 7 hours of floor debate, porate tax liabilities over the past decade, that The impact of this double tax not only this House passed H.R. 1594, the Pension would be almost miraculous. places a financial burden on students, but Protection Act of 1995. Current corporate tax rates top out at also in the long run promises to restrict ac- The purpose of that bill, we were told, was around 34 percent. cess to higher education and to leave more to protect America's seniors from the alleged young people behind as our society enters an Corporations would have to draw down increasingly information-based and tech- dangers in the form of so-called economically nearly $40 billion to produce that kind of tax, nology-dependent age. targeted investments. not considering all of the other factors, such In developing this fee scheme, the Senate Because I have yet to be convinced that as the fact that those taxes would be offset by attacks precisely the people it purports to any action of Secretary of Labor Reich might loss carryovers, credits, and other adjust- represent, middle-class families who see have changed the rules under the Employee ments. higher education as the best means of Retirement Income Security Act [ERISA] which So we are looking at a potential pension achieving the American dream. In a Congress require pension fund managers and trustees which is reducing spending for education, grab of tens of billions of dollarsÐwith abso- particularly higher education, the Labor and to act in the sole interests of the participants lutely no protection for the pensioners or those Human Resources proposal adds insult to in- in pension plans, I could not support H.R. workers who continue to expect their retire- jury by both making loans more expensive 1594. ment to be protected. and at the same time reducing their buying The crocodile tears shed by the proponents And, there is no provision for notice to any- power. In the end, the student loan fee is of that legislation were almost legendary on one, especially the participants and bene- nothing more than a tax increase on the this floor. ficiaries. middle class, the proceeds of which will find Now I read about something that should And another quiet little aspect of the provi- a tax cut for the wealthy. cause those same Members to shed more sion is that the amount that can be withdrawn We know as well that once the federal gov- ernment begins assessing fees it rarely re- than tears, because, hidden in this massive from pensions is based on a valuation date of duces or eliminates them. In fact, over time tax bill is a provision that spells doom for the January 1, 1995 or earlier, while the draw- the fee most likely will increase. We also pensions of all Americans. down will not take place before January 1996. will inevitably get more regulatory require- In the early 1980's, we saw corporations So a pension fund that was in very healthy ments with the fee. Our institutions already making use of so-called excess pension as- condition in December 1994, but which had strain under the weight of enormous report- setsÐthose not needed to pay immediate suffered financial losses, or significantly in- ing requirements for programs like the Fed- pension benefitsÐfor purposes that were cer- creased claims for pensionsÐwhich happens eral Family Education Loan program. We tainly not in the interests of retirees. when you force workers into early retirementÐ spend hundreds of man-hours and significant It took a case like Pacific Lumber, and its could be reduced significantly overnight. resources meeting federal requirements. Adding a fee structure to this process will cozy relationship with Executive Life, to bring The economically targeted investments that only increase this burden. This type of over- out the significant dangers inherent in these were the subject of such dire predictions by regulation forces institutions like my own to activities. my friends on the other side of the aisle bene- seriously consider alternatives to the exist- As you may remember, Pacific Lumber was fit all AmericaÐthrough job creation, new ing federal programs. acquired in a leveraged buyout by another housing, and rebuilt infrastructure.