E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, WEDNESDAY, OCTOBER 25, 1995 No. 166 House of Representatives

The House met at 11 a.m. and was PLEDGE OF ALLEGIANCE The SPEAKER pro tempore. Is there called to order by the Speaker pro tem- The SPEAKER pro tempore. Will the objection to the request of the gen- pore [Mr. BARRETT of Nebraska]. tleman from Georgia? gentlewoman from Florida [Ms. ROS- There was no objection. f LEHTINEN] come forward and lead the House in the Pledge of Allegiance. f DESIGNATION OF THE SPEAKER Ms. ROS-LEHTINEN led the Pledge PRO TEMPORE ANNOUNCEMENT BY THE SPEAKER of Allegiance as follows: PRO TEMPORE The SPEAKER pro tempore laid be- I pledge allegiance to the Flag of the United States of America, and to the Repub- The SPEAKER pro tempore. The fore the House the following commu- Chair announces that fifteen 1-minutes nication from the Speaker: lic for which it stands, one nation under God, indivisible, with liberty and justice for all. will be allowed on each side this morn- WASHINGTON, DC, ing. October 25, 1995. f f I hereby designate the Honorable BILL MESSAGE FROM THE SENATE BARRETT to act as Speaker pro tempore on FIDEL CASTRO’S VISIT this day. A message from the Senate by Mr. NEWT GINGRICH, Lundregan, one of its clerks, an- (Ms. ROS-LEHTINEN asked and was Speaker of the House of Representatives. nounced that the Senate had passed given permission to address the House for 1 minute.) f without amendment a bill of the House Ms. ROS-LEHTINEN. Mr. Speaker, of the following title: PRAYER today, Cuban tyrant Fidel Castro will H.R. 1026. An act to designate the United leave the United States after having States Post Office building located at 201 The Chaplain, Rev. James David been the catalyst for the most shame- Ford, D.D., offered the following pray- East Pikes Peak Avenue in Colorado Springs, Colorado, as the ‘‘Winfield Scott ful behavior seen in a long time. It was er: Stratton Post Office.’’ disgusting to observe how many ig- nored the documented repression in Remind every person, O gracious The message also announced that the Cuba. God, that it is in giving that we re- Senate had passed with amendments in Let me remind world leaders that ceive, that we are blessed when we ap- which the concurrence of the House is while they dined with Castro, thou- preciate the unity that is Your will for requested, a bill of the House of the fol- sands of political prisoners remain in us. Teach us, O God, that we can never lowing title: be the people You would have us be un- Castro’s gulags. Let me remind the less we discern that our lives and hopes H.R. 1606. An act to designate the United American media, that while they asked States Post Office building located at 24 Castro about who will win the World and dreams are intertwined with one Corliss Street, Providence, Rhode Island, as another and that our good fortune is the ‘‘Harry Kizirian Post Office Building.’’ Series, 11 million Cubans continue to linked to the good fortune of others. As be denied their human rights. And let we have received the support of our The message also announced that the me remind United States business lead- family and friends through prayer and Senate had passed a bill of the follow- ers, and even some of my congressional encouragement and counsel, so may we ing title, in which the concurrence of colleagues that while they glorified give of ourselves in service to others the House is requested: Castro, Cuban workers continue to live and so do the work of justice and S. 1328. An act to amend the commence- in misery, as they are paid almost mercy. In Your name, we pray. Amen. ment dates of certain temporary Federal nothing in Castro’s new plantation judgeships. style economy. f f Ironically, in the midst of its 50th an- THE JOURNAL niversary celebration, the United Na- DISPENSING WITH CALENDAR tions was the clear loser, for that same The SPEAKER pro tempore. The WEDNESDAY BUSINESS ON organization which now wants to cre- Chair has examined the Journal of the WEDNESDAY, OCTOBER 25, 1995 ate global taxes, accepted and idolized last day’s proceedings and announces Mr. NORWOOD. Mr. Speaker, I ask as one of its own, the last tyrant of the to the House his approval thereof. unanimous consent that the business hemisphere, and turned its back on the Pursuant to clause 1, rule I, the Jour- in order under the Calendar Wednesday millions of Cubans who suffer under his nal stands approved. rule be dispensed with today. dictatorship. Shame on all.

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H 10749 H 10750 CONGRESSIONAL RECORD — HOUSE October 25, 1995 THE REPUBLICAN BUDGET gress battled long and hard to raise We want to capture this market (Mr. GEPHARDT asked and was taxes. They were successful to the tune share because what this means is that given permission to address the House of $260 billion. The American people we are losing $177,000 and $2 billion of for 1 minute and to revise and extend didn’t like that at all. So we had us a revenue right here. What we have to do his remarks.) revolution at the ballot box. A lot of is to have a strategy. That is why on Mr. GEPHARDT. Mr. Speaker, for the Members of the 103d Congress October 30 and 31 we are having this months now, I’ve had a hard time un- didn’t get reelected because of the tax large White House conference on travel derstanding how the Republican Mem- increase. The 104th Congress has a lot and tourism. This is the most impor- bers of this House could push a budget of new faces, including mine. The tant conference we are going to have that demands huge sacrifices from the American people asked us to balance by far this decade because it is address- many, to lavish huge tax cuts on the the budget; they asked us to return ing the economy of the 1990’s and the few. some of the money they send to Wash- 21st century. We now have in our Trav- I’ve had a hard time understanding ington. el and Tourism Caucus 304 Members. I how the Republicans could double Med- So Mr. Speaker, what will we do for am asking Members to join because icare premiums and carve up middle the people this week? In the budget this will be a historic week and a his- class incomes like a Halloween pump- reconciliation, we will pass a balanced toric conference. kin—all to give about $20,000 a year to budget; we will cut Federal spending; f people who earn half-a-million dollars and we will give back $245 billion to the working men and women of this coun- LET US HAVE A VOTE ON a year. YUGOSLAVIA Above all, I’ve had a hard time un- try. That’s less than the 103d Congress derstanding how any Member of this took out, but it will go to help fami- (Mr. TAYLOR of Mississippi asked House could so brazenly and shame- lies, seniors, and the middle class. It is and was given permission to address lessly turn their backs on the middle simply a matter of keeping our word to the House for 1 minute.) Mr. TAYLOR of Mississippi. Mr. class to dole out new perks and privi- the American people and doing as they Speaker, I spent the weekend visiting leges for the wealthy. wish. American troops in what was Yugo- But now, I’m beginning to under- f slavia and those troops who are on the stand where all this injustice comes THE COMEBACK CITY ground today in Italy preparing to go from. My Republican colleague, FRED- into what was Yugoslavia. Mr. Speak- ERICK HEINEMAN of North Carolina, has (Mr. STOKES asked and was given er, we are doing a lot of important given us a unique window onto the Re- permission to address the House for 1 things in this body. I do not think any- publican world view—and why it’s so minute and to revise and extend his re- thing we do is silly. But there is noth- weighted toward wealth and privilege. marks.) ing more important than deciding the According to Congressman Mr. STOKES. Mr. Speaker, yester- fate of those young American men and HEINEMAN, his own salary—more than day, my good friend and colleague, women who have given their word to $180,000 a year, and I quote, ‘‘does not JOHN LEWIS, stood in this well and de- defend our country. make me rich. That does not make me livered a passionate speech supporting If this Congress does nothing, 25,000 middle class. In my opinion that makes the Atlanta Braves as they landed in young American men and women will me lower middle class.’’ Never mind Cleveland for game three of the World be sent into a situation where they that he earns more money than 97 per- Series. For those who might have gone know many of them will die. This Con- cent of all Americans. to bed early last evening, let me sum gress will have shirked its responsibil- Congressman HEINEMAN then builds things up for you. ity. on this delusional world view, to tell us In comeback city, last night, the Mr. Speaker, we can bring that bill that someone earning $750,000 a year is wind-chill factor hovered at 29 degrees. to the floor. We deserve a vote. Every simply middle class. Never mind that A little help from Mother Nature, Member of this body should decide ´ they earn more than 99 percent of all Eddie Murray, Kenny Lofton, and Jose whether or not those young men and Americans. Mesa, proved to be just what the Indi- women should be called upon, many of I suppose in Congressman HEINEMAN’s ans needed. The team was magnificent them to die, and a peace accord that fiscal fantasy land, slashing Medicare, in winning game three of the World Se- will not bring peace to that part of the cutting student loans, and kicking the ries. world. Tito could not do it in 50 years. elderly out of nursing homes—all to Mr. Speaker, to my colleague from The United States of America cannot pay for tax cuts for people earning hun- Atlanta, JOHN LEWIS, I would say, It do it in 1. We have to vote on this dreds of thousands of dollars per year— ain’t over ’til it’s over. To the fans and issue. is a true blue middle class agenda. players from the Atlanta Braves, I say, But if you live in the real world, it’s Welcome to Cleveland, the comeback f just plain wrong. The Republicans just city. NO UNITED STATES TROOPS TO don’t get it. If they would step out and f BOSNIA talk to hard-working, struggling fami- (Mr. RAMSTAD asked and was given TRAVEL AND TOURISM lies every once in a while, they’d un- permission to address the House for 1 derstand why their views are so radical (Mr. ROTH asked and was given per- minute and to revise and extend his re- and extreme. mission to address the House for 1 marks.) And then maybe they’d learn that for minute and to revise and extend his re- Mr. RAMSTAD. Mr. Speaker, I the vast majority of Americans, the marks.) wholeheartedly endorse the remarks of Republican budget is more than un- Mr. ROTH. Mr. Speaker, I have taken the preceding speaker, the distin- fair—it’s more than a bunch of silly this time to make a point. If we want guished gentleman from Mississippi. I mistakes and assumptions—it’s an ab- a strong economy, then we have to act believe, as he does, that the President solute outrage. And in the name of now. Travel and tourism is the fastest is on the verge of making the mistake common decency, it deserves to be de- growing industry in America and in the of a lifetime. Without clearly defining nounced and defeated. world. Yet look at what other coun- our mission in Bosnia, without proving f tries are spending on just advertising. a compelling national interest or with- Greece for example $143 million. The out a precise plan of action, the Presi- THE 104TH CONGRESS KEEPS ITS United States is way down to $16 mil- dent is about to commit 20,000 to 25,000 WORD lion. What does that mean? That American combat troops to Bosnia. (Mr. NORWOOD asked and was given means this year we are losing a large Mr. Speaker, U.S. troops should not permission to address the House for 1 market share. Look at what is taking be ordered to keep a peace where no minute.) place. In 1993 we had almost 19 percent; peace exists. If Members believe peace Mr. NORWOOD. Mr. Speaker, in 1993, now we have less than 16 percent, and has been achieved in the former Yugo- the liberal Democrats of the 103d Con- it is going down. slavia, then Members believe Elvis is October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10751 alive. The President is clearly jumping taxes in 1995. Today their total is over the guardians of the old order, can an the gun in committing troops to 40 percent with Federal, State, and increase from $4,800 this year to $6,700 Bosnia. It is a dangerous move and has local taxes combined. in the year 2002 be considered a cut. all the makings of a very, very deadly Last November, the American people How is that a cut? It is an increase of quagmire. said ‘‘enough.’’ Republicans cam- almost $2,000. Mr. Speaker, there is no plan. There paigned on a promise to balance the Mr. Speaker, the American people is no compelling national interest to budget, and we will keep that promise. will not be fooled. They understand it send young American men and women No excuses. No gimmicks. It is time to is time for fundamental change. That to die in Bosnia. Mr. Speaker, there is balance the budget. is why we were sent here, and that is no compelling reason to take this ac- f why we will change things for the bet- tion. ter. Let us lift the arms embargo against A QUICK QUIZ f the Bosnian Moslems so they can de- (Mr. ENGEL asked and was given fend themselves, but let us not place permission to address the House for 1 THIS IS NOT A FAIR BUDGET United States troops in a deadly situa- minute and to revise and extend his re- (Mr. WYNN asked and was given per- tion. Let us not spend $2 billion of marks.) mission to address the House for 1 American taxpayers money. Mr. ENGEL. As we do budget rec- minute and to revise and extend his re- f onciliation, a quick quiz, Mr. Speaker, marks.) three questions: Mr. WYNN. Mr. Speaker, good morn- CONGRESS CUT NOT ONE PENNY First, why are Republicans cutting ing. Balancing the budget may be a FROM ISRAEL OR EGYPT Medicare and hurting seniors? A—to good idea. Tax breaks for the wealthy (Mr. TRAFICANT asked and was save the Medicare Program? B—to bal- is not. I want to talk about Medicaid. given permission to address the House ance the budget? C—to pay for a tax In this so-called reconciliation bill for 1 minute and to revise and extend cut for the rich? the Republicans cut $182 billion out of his remarks.) If my colleagues said ‘‘C’’ they are Medicaid. Now some people are saying, Mr. TRAFICANT. Mr. Speaker, ev- right. The Republicans are cutting ‘‘There you go, talking about the poor erybody realizes that cuts must be Medicare to help their rich friends. again.’’ No, I am talking about the el- made, but there is something definitely Second, who do Republicans care derly, the disabled, and the blind. They wrong here. Congress cuts seniors in most about? A—senior citizens? B— had not one public hearing. They cut America. Congress cuts housing in America’s children? C—the B–2 bomb- $182 billion. They tell us, well, it is to America. Congress cuts kids in Amer- er? make things better for future genera- ica. Congress cuts education in Amer- Again, if my colleagues said ‘‘C’’ they tions. ica. Congress cuts farmers in America. are correct. While the Republicans are Mr. Speaker, the future is now. The Congress cuts services in America. cutting Federal funding to Medicare future is my parents, my colleagues’ Congress cuts bridges and roads in and education, they are increasing parents. It is my colleagues’ parents, America. funding for the B–2 bomber, what even my colleagues’ grandparents, my col- I might be able to accept that, but, the Pentagon says we do not need. leagues’ aunts, and my colleagues’ un- on the other hand, Congress did not cut Third, which programs will be pro- cles who are in these nursing homes. In one penny from the aid to Egypt or Is- tected under Republican proposals? A— the year 2002, when they tell us they rael. Now, a Congress that can find Social Security? B—Medicare? C—Pork will have a great balanced budget, they money for Israel and Egypt while cut- barrel projects in Republican districts? will also be spending 30 percent less on ting all of this in America, in my opin- Again, the answer is ‘‘C.’’ While Re- Medicaid. They also are eliminating ion, is not only misdirected but out of publicans are hurting seniors by reduc- the standards that protect seniors from touch with America. ing their Social Security and Medicare oversedation, protect their nutrition, I am going to vote ‘‘no’’ on this budg- benefits, they are conducting business protect their health standards in nurs- et. We should treat everybody alike; as usual by increasing funding for fat ing homes. even if it is like dogs, treat everybody cat projects. The other night I met with the Alz- alike. Well, Mr. Speaker, all three answers heimer’s support group. They are wor- were ‘‘C.’’ ried. They are concerned that they f I guess the ‘‘C’’ stands for cuts—Re- may have to spend their children’s col- b 1115 publican cuts. Cut the heart out of our lege education to support their parents seniors by raiding Medicare. Cut the in nursing homes. They are concerned IT IS TIME TO BALANCE THE heart out of our children’s education. that the elderly are sometimes eating BUDGET Cut the heart out of America’s future. cat food because they cannot afford it. (Mr. WATTS of Oklahoma asked and f This is not a fair budget, and they was given permission to address the worsen the pain by adding tax breaks House for 1 minute.) THE AMERICAN PEOPLE UNDER- for the rich. We need to protect our Mr. WATTS of Oklahoma. Mr. Speak- STAND IT IS TIME FOR FUN- seniors. Reject the Republican budget er, this week the House will debate DAMENTAL CHANGE approach. H.R. 2491, the fiscal year 1996 budget (Mr. HAYWORTH asked and was f reconciliation. For the first time in a given permission to address the House generation, Congress will pass a bal- for 1 minute and to revise and extend REPUBLICAN MAJORITY DELIVERS anced budget. By the year 2002, the def- his remarks.) CLINTON’S CAMPAIGN PROMISE icit will be zero and we will be on our Mr. HAYWORTH. Mr. Speaker, I lis- FOR A TAX CUT way to paying down the national debt. tened with great interest to the gen- (Mr. CHABOT asked and was given Mr. Speaker, this is the right thing tleman from New York [Mr. ENGEL] permission to address the House for 1 to do. For the first time in 25 years, play a game that really should be minute and to revise and extend his re- Congress has run out of excuses for not called, Who does he think he’s fooling? marks.) doing the right thing for America’s fu- I at least was happy it was a multiple- Mr. CHABOT. Mr. Speaker, President ture. Previous Congresses totally choice test because we will provide sen- Clinton’s reelection campaign is now in avoided the most basic financial re- iors something that has been lacking full swing, so once again he has flip- sponsibilities. They squandered billions in health care for the last three dec- flopped his position on taxes. Now the on frivolous, ineffective, and repetitive ades, a choice, the most fundamental President admits that he raised taxes bureaucracies. They repeatedly raised element of American freedom, the free- too much in his 1993 budget. Let us lis- taxes, making it appear that the prob- dom to choose what health care plan is ten to what the pundits around this lem was the American people’s problem best for them, and once again, Mr. Nation are saying: and not their own. Americans paid 37 Speaker, only in Washington, with the Eleanor Clift said, ‘‘This is just one percent of their income in Federal twisted Washington mathematics of notch below ‘Read my lips.’ ’’ H 10752 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Margaret Carlson said, ‘‘It was pan- neighborhood in my district with real Obviously, this young man loves dering of the worst sort, and it’s inde- people, was that we need tax relief. America, and he has taken a very pa- fensible.’’ Mr. Speaker, one of them said, triotic stand. Morton Kondracke said, ‘‘It’s evi- ‘‘Taxes are killing the American peo- Most Americans believe that the dence of a character disorder on Bill ple.’’ young men and women in our Armed Clinton’s part.’’ Now the other side calls this tax re- Forces should not be sent overseas ex- Mr. Speaker, candidate Bill Clinton lief for the rich, but that is garbage, cept under the command of American promised a middle-class tax cut, but and they know it. Rich people do not generals and admirals. then President Bill Clinton raised have any more children than poor peo- The Members of Congress who are the taxes on the American people. This ple. most concerned with the treatment of week the Republican majority will de- As young ladies walked up to me Mr. New are generally the Members liver on those promised tax cuts, and it with one baby in their arms and an- who are among the strongest support- is about time. other dragging along behind them, I ers of the U.S. military. f asked them, ‘‘Could you use a thousand Our Armed Forces are going to dollars’ tax credit?’’ squander a great deal of public and WE CANNOT ALLOW THIS REC- Mr. Speaker, they said to me, ‘‘You congressional support if they continue ONCILIATION TO TAKE OUR bet I could.’’ to prosecute Michael New. ECONOMY HOSTAGE I ask my colleagues, ‘‘Whose money They could easily have found other is it, and who can better spend it?’’ (Mrs. KENNELLY asked and was duty for someone who was making a That side says government can spend it given permission to address the House reasonable, principled, and patriotic better. I say we can spend it better by for 1 minute and to revise and extend objection as was Mr. New. giving it to the American people. her remarks.) f Mrs. KENNELLY. Mr. Speaker, f RECONCILIATION WITH A ‘‘W’’ today, as we begin debating the rec- WELCOME TO THE GINGRICH onciliation, we are debating nothing REVOLUTION (Mrs. SCHROEDER asked and was less than the path the United States given permission to address the House (Ms. DELAURO asked and was given will take in the future. On issues from for 1 minute and to revise and extend permission to address the House for 1 education to the environment, health her remarks.) minute and to revise and extend her re- care to nutrition, the choices we make Mrs. SCHROEDER. Mr. Speaker, yes- marks.) will have an impact for many years. terday I talked about the words that Ms. DELAURO. Mr. Speaker, my Re- the Gingrich revolution uses to sneak But of all the choices we make, none publican colleagues say their tax pack- up on people and make them think is more critical than this: We cannot age benefits the middle class. I guess it that they are all warm fuzzies. Rec- allow our very significant differences all depends on how you define middle onciliation is one of those words. It over reconciliation to take our econ- class. omy hostage. We cannot allow a failure In today’s Washington Post one Re- sounds so warm and wonderful, but let to raise the debt ceiling to force Amer- publican Congressman explains that me say, unless you are in the middle ica into default. GOP tax credits for people making class that the Republicans have had de- I want to make just two simple $200,000 a year are not tax breaks for fined by them, by the gentleman from points (about this:) First, no matter the wealthy, because people making North Carolina, Congressman how stringent the budget action we $200,000 a year are not wealthy, they HEINEMAN, as those people from $300,000 take this week, the debt ceiling will are lower middle class. a year to $750,000, unless you are in still have to be raised. There is no way The Congressman is quoted as say- that middle class, reconciliation is to avoid it it without pushing us into ing: ‘‘When I see someone who is mak- spelled this way for you. default. ing anywhere from $300,000 to $750,000 a This is really ‘‘wreconciliation’’ for And second, no one knows what the year, that’s middle class.’’ the middle class. That is where I am, consequences of default could be be- If Republicans consider a person and I think we need to go into this cause it has never happened before. I, making $750,000 a year as middle class, much further and point it out before for one, see a real potential for world- I am beginning to understand how they this all happens and before people are wide economic disruption. I urge my can claim that this budget helps the lulled to sleep. colleagues to avoid politics or middled class. In fact, by GOP calcula- What happens to the elderly? Boom. grandstanding on this incredibly im- tions, NEWT GINGRICH might qualify for What happens to families? Boom. What portant issue. food stamps. Except there would not be happens to children? Boom. We are f food stamps, because they are being going to wreck families, children, and cut to help out those poor, struggling all sorts of people’s sustainable income TAXES ARE KILLING THE families making $750,000 a year. Wel- that has kept them in what we define AMERICAN PEOPLE come to the Gingrich revolution. as the middle class. So, pull it away, and away they fall. (Mr. SHADEGG asked and was given f permission to address the House for 1 This is wreconciliation; do not be minute and to revise and extend his re- A PATRIOTIC OBJECTION fooled by the word. marks.) (Mr. DUNCAN asked and was given f Mr. SHADEGG. Mr. Speaker, enough permission to address the House for 1 of the rhetoric from the other side. We THE TRUTH ABOUT BUDGET minute and to revise and extend his re- RECONCILIATION are engaged in a great debate here marks.) about the budget, about the issue of Mr. DUNCAN. Mr. Speaker, tomor- (Mr. TIAHRT asked and was given tax cuts or deficit relief. row a courageous young man named permission to address the House for 1 Mr. Speaker, I just heard the minor- Michael New is to be arraigned for a minute and to revise and extend his re- ity leader come to this floor and say court martial. marks.) the Republicans were out of touch. He Mr. New’s offense is that he refused Mr. TIAHRT. Mr. Speaker, Jay said they ought to take a step out and to wear the blue uniform of the United Thomas, who lives in Wichita, KS, said, talk to real working Americans. Nations on a peacekeeping mission to ‘‘I would just like to know where I Mr. Speaker, he did not know what I Macedonia. could go to hear the truth,’’ and, as we did last weekend because last weekend He has not refused to go overseas on heard before, supposedly we snuck up I spent hours in front of grocery stores the peacekeeping mission as ordered. on people, because he heard that nutri- and drug stores in any district, and I He simply has taken the position tion programs were being cut and that asked the American people the ques- that his oath upon entering military children would starve, but there have tion my colleagues and I are debating, service was to the United States—not been no reports of children starving. In ‘‘Do you need tax relief?’’ And their an- the United Nations—and he wanted to fact, nutrition programs are up 4 per- swer, and I did this in a working-class wear his U.S. Army uniform. cent in the Republican budget. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10753 My colleagues heard that Medicare SUPPORT TAX CUTS Mr. WELDON of Florida. Mr. Speak- was at a $270 billion cut. Yet it has (Mr. SAM JOHNSON of Texas asked er, as we debate tax cuts this week, I gone from $4,800 per year to $6,700 per and was given permission to address think we should look to the example of year with more people in the system in the House for 1 minute and to revise President Reagan. 7 years, an increase. Plus it has a and extend his remarks.) In 1981, President Reagan cut taxes, lockbox provision so any savings goes Mr. SAM JOHNSON of Texas. Mr. setting off the longest peacetime ex- right back into providing more health Speaker, last week in my home State pansion in American history. What care and not for tax breaks for the rich of Texas the President admitted what happened during the ensuing decade? More than 19 million high paying like we would hear some other people Republicans and the American people allegedly saying. jobs were created. already knew—he raised taxes too Real median family income increased And tax breaks for the rich; let us much. talk about that. When he knows that 13 percent. Two short years ago Mr. Clinton and The number of Americans trapped in women who have three children are the Democrats raised America’s taxes driving to work this morning so they poverty dropped by 4 million. by $258 billion, the largest tax increase The rich carried a greater percentage can provide for those children and the in American history. of the tax burden. tax breaks, I want that young woman Republicans now want to return that Now listen carefully. Of those in the to know that she will get $1,500, $1,500, money back to hardworking Americans bottom fifth income bracket in 1979, 65 of a tax break. She is not rich, she is by providing tax cuts for families, for percent jumped at least two income poor. seniors, and for America’s jobcreating brackets during the 1980’s. And more So where is the credibility? Listen, businesses. It is time to put the people made it to the top income bracket than Jay. The truth is that we are going to back in charge of their wallets. Let’s stayed in the bottom. balance the budget to preserve a future get government out of our pockets. My colleagues on the other side of for the children. We are going to pre- It’s nice to see the President admit the aisle: Do you want to help the serve and protect Medicare. We are his own mistake. Fortunately it’s not poor? Well then, cut taxes. going to reform welfare, requiring too late for him to right his wrong, he f work, bringing the work ethic back in, can let all Americans keep more of and we are going to give tax breaks to what they earn. Support tax cuts and FOCUS SHOULD BE ON THE families, all under the 7-year balanced sign the budget. It’s good for America. CHILDREN budget Reconciliation Act. f (Mr. JOHNSTON of Florida asked and f was given permission to address the REPUBLICAN BUDGET CUTS SCORN House for 1 minute and to revise and b 1130 RURAL AMERICA extend his remarks.) SUPPORT THE COALITION BUDGET (Mrs. CLAYTON asked and was given Mr. JOHNSTON of Florida. Mr. Speaker, Hubert Humphrey once said (Mr. PAYNE of Virginia asked and permission to address the House for 1 that ‘‘the moral test of government is was given permission to address the minute and to revise and extend her re- how that government treats those who House for 1 minute and to revise and marks.) are in the dawn of life, the children; extend his remarks.) Mrs. CLAYTON. Mr. Speaker, this those who are in the twilight of life, Mr. PAYNE of Virginia. Mr. Speaker, week we will vote on proposed budget the elderly; and those who are in the if you could vote for a bill that would cuts that ignore the past, disregard the shadows of life—the sick, the needy balance the budget in 7 years, cut the present, and worse: Scorns the future, and the handicapped.’’ deficit faster and deeper than any plan especially for rural America. Scorn is a harsh word to use in de- I would like to focus on the children. now on the table, and achieve real In the United States today, a child is budget process reforms, would you? scribing the impact of Republican budget cuts on our children, but con- born into poverty every 30 seconds. That’s the choice every Member of Yet my Republican colleagues are sider what these cuts will do to rural this House will face tomorrow when systematically throwing millions of the House votes on the Budget Rec- children in North Carolina. Almost a quarter of a million needy lower middle class families with chil- onciliation Act. We can vote for the dren into poverty. children in North Carolina, and 41⁄2 mil- bill that was written by the Republican By cutting Medicaid, school lunch lion nationwide will be dropped from leadership, or we can vote for a better programs, student loans, low income Medicaid. plan, the substitute bill that was devel- heating assistance, the earned income More than 60,000 North Carolina oped by the conservative Democratic tax credit, Federal housing assistance, young people will be denied a summer Coalition. aid for families with dependent chil- job, 4,000 will lose Head Start, and all It is the coalition’s budget that dren, and education they are cutting 129 school districts will lose money for spends less of our constituents’ short the hopes of the children of this Safe and Drug Free Schools, affecting hardearned money over 7 years. country. It is the coalition’s budget that con- threequarters of a million rural chil- These cuts will push millions of chil- tains real budget process reforms like a dren. dren into the shadows of life, and into line item veto that applies right now Nutrition assistance for North Caro- lives of uncertainty, insecurity, and and a deficit reduction lockbox that lina children is cut by more than 20 poverty. can’t be picked. percent, $500 million, affecting 320,000 In the United States, every 30 sec- And it is the coalition’s budget says children. onds a baby is born into poverty. Are its wrong to borrow money from our When combined with housing cuts af- we now shooting for every 15 seconds? kids to pay for big tax cuts right now. fecting thousands of North Carolina At some point, Mr. Speaker, my col- But that’s not all, Mr. Speaker. children, the elimination of heating as- leagues on the other side of the aisle Because the coalition rejects tax cuts sistance from 200,000 children, and the must ask themselves if giving a tax and doesn’t backload its spending cuts denial of child care help for 20,000 chil- break to the wealthiest Americans is as the Republican plan does, we are dren—scorn may not be a harsh enough worth the cost of our children. able to provide $100 billion more for word—cruel and inhuman might be f Medicare and $100 billion more for Med- more appropriate choices. icaid than their plan. And we don’t f PASSING THE RECONCILIATION slash spending for student loans and BILL IS THE BEST THING CON- agriculture. HELP THE POOR BY CUTTING GRESS CAN DO FOR THE AMER- The conservative Democratic Coali- TAXES ICAN ECONOMY AND THE POOR tion’s budget is tough and it is fair. It’s (Mr. WELDON of Florida asked and (Mrs. WALDHOLTZ asked and was a better deal for your constituents and was given permission to address the given permission to address the House mine. I urge my colleagues to vote for House for 1 minute and to revise and for 1 minute and to revise and extend it. extend his remarks.) her remarks.) H 10754 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Mrs. WALDHOLTZ. Mr. Speaker, we Mr. VENTO. Mr. Speaker, the House, stands as it relates to the variables of have heard a lot from the other side of with its budget, is set for the biggest their economic status. Mine were accu- the aisle about why we should not bal- gamble of the decade. The gamble is to rate for me and others like me. ance the budget, we should not reduce reduce the deficit. I do not think it will f Federal regulations, and why we should do that. More important, it is going to not cut taxes. Let me recommend to increase the human deficit, the human BULK SALES OF BUDGET my doubting colleagues that they get suffering in this country. It reneges on RECONCILIATION PACKAGE hold of the recent DRI-McGraw-Hill re- the basic commitments we have had to (Mr. GUTIERREZ asked and was port on the economic impact of the rec- decency and to families. given permission to address the House onciliation bill we will soon be consid- In fact, speaking of unfairness, last for 1 minute and to revise and extend ering. According to that study, the rec- week’s Wall Street Journal pointed out his remarks. onciliation bill will ‘‘bring down inter- that the Republican tax breaks in- Mr. GUTIERREZ. Mr. Speaker, we’ve est rates for fixed rate mortgages by 2.7 creases taxes for those under $30,000 in- heard a lot lately about possible bulk percentage points, and those for adjust- come, because it eliminates part of the sales of NEWT GINGRICH’s book. able mortgages by 1.7 percentage earned income tax credit; because the Yes, reports say GINGRICH is doing ex- points by the year 2000.’’ child tax credit you have been hearing actly what he accused a former Speak- The result, said DRI, would be an 8- about does not help low-income people. er of. But, guess what? His $2 million percent boost in home values, and an In fact, of course, it cuts programs book is not the only thing NEWT GING- increase in household net worth for like education, Medicaid, school RICH is trying to sell in bulk. Here’s the Americans of over $1 trillion, $1 tril- lunches. The Medicaid program is com- new book—the GOP’s 1,500 page, budg- lion. pletely decimated by this Republican et-busting reconciliation package. In Mr. Speaker, passing this reconcili- budget measure. We are going to see it, NEWT GINGRICH is going to try to ation bill is the best thing we can do the reopening of the institutions for sell—in bulk—some gems of fiction for the people of our country, the mid- the disabled in our States. There is that you just won’t believe. dle class and the poor. No Government going to be inadequate funds to meet He’ll try to sell you on the idea that spending program could ever come basic health needs. we should give a tax cut to the wealthy close to achieving what balancing the The Governors in this country, good few while we cancel tax credits for the budget will do, if we just have the cour- Governors they may be, are not capa- working poor. And he wants you to buy age to do it. ble of the miracle of loaves and fishes. into the fiction that students don’t Mr. Speaker, I hope the President They cannot make something out of ever need a college loan. will put aside politics for a while and nothing. That is what they are being NEWT GINGRICH called his first book: join us to balance this budget. handed by the GOP proposed programs. ‘‘To Renew America.’’ f A block grant. This has all the grace of He should call this one: ‘‘How to cement blocks being dropped on our Undo America,’’ undoing decades of URGING MEMBERS TO COSPONSOR States. These block grants are going to BILL TO CREATE A NATIONAL what is good and decent and fair. This deliver stones back home in place of book might not be a best-seller, but it COMMISSION TO STUDY GAM- help. This Republican plan will espe- BLING certainly is a good example of how to cially hurt children—16 million kids re- sell-out. (Mr. WOLF asked and was given per- ceive Medicaid; they need their health mission to address the House for 1 care, education, and nutrition pro- f minute and to revise and extend his re- grams. REQUEST FOR IMMEDIATE CON- marks.) Mr. Speaker, reject this, reject the SIDERATION OF S. 1060, LOBBY- Mr. WOLF. Mr. Speaker, I want to let tax breaks for the affluent. Let us keep ING DISCLOSURE ACT OF 1995 the Members know that we now have 92 our commitments to our American cosponsors on our bill to create a na- families and to the kids, our hope for Mr. SKAGGS. Mr. Speaker, I ask tional commission to study the impact tomorrow. Let’s not gamble away the unanimous consent to take from the of gambling in the United States. children’s milk, health, and school Speaker’s table the Senate bill (S. 1060) Twenty years ago only two States had money. to provide for the disclosure of lobby- ing activities to influence the Federal gambling. Now almost every State but f Hawaii and Utah has gambling. Government, and for other purposes, This is a bipartisan bill. We have the ACCURATE PERSONAL REMARKS which has passed the Senate, and pro- majority whip and the minority whip. TAKEN OUT OF CONTEXT BY ceed to its immediate consideration. It is time we pass it, whereby we can THE DEMOCRATIC MINORITY The SPEAKER pro tempore (Mr. have a study to see, is there a problem (Mr. HEINEMAN asked and was given BARRETT of Nebraska). The Chair does of corruption? We know corruption permission to address the House for 1 not recognize the gentleman for that does follow. Is there a problem of minute and to revise and extend his re- purpose at this time. crime? Is there a problem of organized marks.) f crime? Is there a problem of teenage Mr. HEINEMAN. Mr. Speaker, the PARLIAMENTARY INQUIRY addiction? Let us find out. Let us have depth of the Democratic agenda is no a national commission to examine it. deeper than a bumper sticker. Their Mr. DOGGETT. I have a parliamen- The bill is being cosponsored in the whole agenda in this 104th Congress has tary inquiry, Mr. Speaker. I have here Senate by Senator SIMON from Illinois, been out of context remarks, lies, and the Republican whip notice saying here and Senator LUGAR from Indiana. We distortions. That is the depth of their that the first item of business this hope to pass it in the House this year initiatives. morning will be the legislative branch and pass it in the Senate this year. I The minority leader, in his failure to appropriations, and the very gift ban urge all my colleagues who are not co- keep his party together, is now des- and lobby reform the gentleman refers sponsors, please call my office today to perately clutching for straws. The re- to. cosponsor the bill, H.R. 497, National marks of myself, FRED HEINEMAN, in an Is it true that after the vote of the Commission to Study the Impact of informal discussion with his hometown Democratic Caucus calling for imme- Gambling. paper as to what and who are rich, were diate gift ban reform this morning, f completely taken out of context. Now that that has been pulled from the they have been incorporated into the agenda and we will not have a chance THE REPUBLICAN BUDGET: THE Democratic platform to defeat the Re- to have a gift ban reform and lobby re- BIGGEST GAMBLE OF THE DECADE publican initiatives to save this coun- form considered today? (Mr. VENTO asked and was given try. The SPEAKER pro tempore. The permission to address the House for 1 My remarks were directed to my sit- Chair cannot comment on that particu- minute and to revise and extend his re- uation and my situation alone. Each lar inquiry. The Chair will recognize marks.) person can better judge where he or she the gentlewoman from Utah [Mrs. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10755

WALDHOLTZ], for the purpose of calling tain provisions which exceed the scope ty and reliability of our Nation’s trans- a privileged rule. of differences between the House and portation systems. For example, the f the Senate. legislation cuts AMTRAK rail pas- Waivers under the rule are in accord- senger service by $158 million; it cuts b 1145 ance with previous tradition on appro- the Coast Guard by $281 million; it cuts priations conference reports, and in the Federal Transit Administration by CONFERENCE REPORT ON H.R. 2002, fact, the rule was reported out of com- $563 million; and it cuts the Federal DEPARTMENT OF TRANSPOR- mittee on a voice vote with no con- Aviation Administration by $178 mil- TATION AND RELATED AGEN- troversy or opposition. lion. CIES APPROPRIATIONS ACT, 1996 H.R. 2002 provides critical funding for Mr. Speaker, I would also like to Mrs. WALDHOLTZ. Mr. Speaker, by improving and investing in our Na- note that the House Democratic con- direction of the Committee on Rules, I tion’s infrastructure and transpor- ferees took unaminous exception to call up House Resolution 241 and ask tation needs. For example, the bill in- one provision in the conference report, for its immediate consideration. creases funding for the Federal Avia- amendment number 174, which allows The Clerk read the resolution, as fol- tion Administration in order to im- the Federal Aviation Administration lows: prove aviation safety. It provides $1.45 Administrator to waive current law H. RES. 241 billion for the airport improvement pertaining to labor management and Resolved, That upon adoption of this reso- program, which is the same level of employee relations. The reasons for our lution it shall be in order to consider the spending as last year, and provides Members’ objections to this particular conference report to accompany the bill $19.9 billion for total highway program provision will be one of the issues dis- (H.R. 2002) making appropriations for the De- spending. cussed during the course of debate on partment of Transportation and related At the same time, Mr. Speaker, the this legislation. agencies for the fiscal year ending Septem- bill recognizes the need to restructure Mr. Speaker, to repeat: we have no ber 30, 1996, and for other purposes. All and downsize the Federal Government. objections to this rule, and we urge its points of order against the conference report passage so that the House can proceed and against its consideration are waived. This bill includes provisions to termi- nate the Interstate Commerce Commis- to consideration of the conference re- The SPEAKER pro tempore (Mr. sion, reduce transit operating assist- port. BARRETT of Nebraska). The gentle- ance funds, and cut administrative ex- Mr. Speaker, I reserve the balance of woman from Utah [Mrs. WALDHOLTZ] is penses of the Department of Transpor- my time. recognized for 1 hour. Mrs. WALDHOLTZ. Mr. Speaker, I tation, including a requirement to con- Mrs. WALDHOLTZ. Mr. Speaker, for have no further requests for additional solidate the Department’s extensive the purposes of debate only, I yield the time at this point, and so I reserve the field offices, for a savings of $25 mil- customary 30 minutes to the gen- balance of my time. lion. tleman from California [Mr. BEILEN- Mr. BEILENSON. Mr. Speaker, I Mr. Speaker, importantly, this bill SON], pending which I yield myself such yield 5 minutes to the gentlewoman also changes how we make our funding time as I may consume. During consid- from Colorado [Mrs. SCHROEDER]. decisions in this Congress. This bill to- eration of this resolution, all time Mrs. SCHROEDER. Mr. Speaker, I tally eliminates funding for highway yielded is for the purpose of debate thank the gentleman for yielding time demonstration projects, which pre- only. to me. I basically take the floor to talk viously were a way to funnel more PARLIAMENTARY INQUIRY about the FAA, because this is a rule money to favored lawmakers’ districts, bringing up the transportation appro- Mr. DOGGETT. Mr. Speaker, I have a and instead uses these funds for the priations in which the FAA is getting parliamentary inquiry. benefit of the entire Nation. more money. The SPEAKER pro tempore. The gen- Under this bill, we spend next year Let me say that I am here today tleman will state it. virtually all of the highway trust funds pleading with the FAA to please, please Mr. DOGGETT. Mr. Speaker, under collected instead of stockpiling those come clean with the Denver media and this particular resolution, is the legis- funds to mask the true size of the na- the people who live in Denver. Let me lative branch appropriation affected by tional debt. tell you why. this particular rule, or is it exclusively Mr. Speaker, this bill reflects fiscal Mr. Speaker, many of you know we the Transportation branch? responsibility, and at the same time had a huge snowstorm. We have a The SPEAKER pro tempore. This provides sufficient funding for our brandnew airport. I think people have rule will make in order the Department transportation and infrastructure read a lot about that new airport, and of Transportation Appropriation con- needs. they read a lot of negative things ference report. Mr. Speaker, I urge my colleagues to about what happened in the control Mr. DOGGETT. Mr. Speaker, since adopt the rule and the underlying bill. tower at that airport during the snow- the gentlewoman from Utah [Mrs. Mr. Speaker, I reserve the balance of storm. The roof started leaking like WALDHOLTZ] has herself circulated a my time. mad. They had water coming down letter on this gift ban issue, does this Mr. BEILENSON. Mr. Speaker, I over all of the instruments. They were resolution and rule permit the offering thank the gentlelady from Utah [Mrs. putting plastic over all of the instru- of gift ban or lobby reform legislation, WALDHOLTZ] for yielding me the cus- ments. The problem has been that the as the Republican whip notice said we tomary one-half hour of debate time, FAA will not let even one camera in would have an opportunity to consider and I yield myself such time as I may there to see it. this morning? consume. Yesterday another tile fell on one of The SPEAKER pro tempore. This Mr. Speaker, we do not oppose this the air traffic controllers’ heads. Luck- rule does not relate to that subject. rule. It is a traditional rule for a con- ily, she was not hurt, but they made Mr. DOGGETT. I thank the Speaker. ference report on an appropriations her sign all sorts of statements and all The SPEAKER pro tempore. The gen- bill, waiving all points of order against sorts of everything else. They have also tlewoman from Utah [Mrs. WALDHOLTZ] the conference report and against its had to remove two air traffic control- is recognized. consideration. lers, take them out of service because Mrs. WALDHOLTZ. Mr. Speaker, However, we would like to point out apparently the leaks are so bad that House Resolution 241 provides for the to the membership our concerns about there is no place to sit in those posi- consideration of the conference report the legislation that the rule makes in tions. for H.R. 2002, the fiscal year 1996 trans- order, which provides appropriations Now, here is the problem: Denver is portation appropriations bill. The rule for transportation programs for fiscal getting dinged for all of this. Every- waives all points of order against the 1996. body is going to laugh at Denver, laugh conference report. The waiver covers Our primary concern is that this bill at Colorado. Denver did not build that provisions relating to legislation and shortchanges, we believe, many valu- tower. That tower was totally under unauthorized items on a general appro- able services that the American people the control of the Federal Aviation Au- priations bill and, further, protects cer- have come to depend upon for the safe- thority. They oversaw it, and they H 10756 CONGRESSIONAL RECORD — HOUSE October 25, 1995 built it. They selected a contractor come the best all-weather and the You need a trip to the ski slopes? It who has had, I guess, some problems in safest all-weather airport in the world. is still permitted. You need a little the past with roofs. That has been the I am a pilot. I understand how impor- chateaubriand and Cabernet rumor; but whatever, they ought to be tant that is. We were so proud of how Sauvignon? It is still permitted. Do big enough to come out and talk about it worked on the opening day when we you need tickets to the World Series or the problems. had a terrible, terrible snowstorm and the Super Bowl? It is still permitted to No one expects a brandnew facility everything went like this. The ceiling be a gift to Members of this body. The like this to kind of open up and leak did not collapse or leak at that point only thing that is preventing that like it did when this kind of a storm and the ground radar was working problem being dealt with here as our comes through, then to be in this state properly, I guess, at that point. colleagues, Republican and Democrat of denial where they are denying access Mr. Speaker, we want it to work. alike have dealt with it in the U.S. so cameras cannot even come in and to This is like getting a new car and it Senate, is the obstructionism and the refuse to come out and really talk to falls down as you drive it out of the objection of Speaker GINGRICH and the people about what you are going to do showroom. Get it fixed, FAA, because Republican leadership. to get this up and going is very trou- we are getting impatient. Indeed, the first vote that we took on bling. Mr. BEILENSON. Mr. Speaker, I this issue when every single Repub- There were some other problems with yield 5 minutes to the gentleman from lican voted against gift reform was on the ground radar. I understand, and I Texas [Mr. DOGGETT]. the first day of this session, where peo- was very pleased, that the FAA was out Mr. DOGGETT. Mr. Speaker, what is ple stood at this very spot and said, let there, they went out, they looked at it, happening here this morning is truly us change business as usual, let us they decertified it, but then they amazing. By this rule, we set the order clean up the relationship between leg- recertified it and turned it back on. of debate here in this House, and last islators and lobbyists, and the response Many of the people we have talked to night we were given an indication of of Speaker GINGRICH to that initiative out there have said that they just what the order of debate would be, and was that ‘‘it was an astonishingly nar- turned it off, they turned it on, it did again, as recently as a few hours ago row and self-destructive act.’’ not solve the problem. It is not seen in this morning we were given an indica- b that corner of the airport where it was tion of what the order of debate would 1200 seen at the time the almost-accident be in the official Republican whip no- What a comment by those who claim occurred. tice. That order was to consider the to be revolutionaries, who say they So we do not want the FAA trying to legislative branch appropriations bill. really want to change the way business paint over that either and put a happy With that in mind, the Democratic operates in this House. It is time to ad- face on it. Caucus met this morning and over- dress the issue of gifts, and no amount Mr. Speaker, the FAA has had a whelmingly voted to support the gift of press releases and no amount of model record in the world for air traffic ban legislation, the gift ban rule to be speeches can make up for the continual safety, and I absolutely cannot figure more specific, that the Senate has ap- delay. At every opportunity imme- out why we are kind of getting the proved on a bipartisan basis 98 to 0. diately after action is called for and a brushoff and why they are not dealing However, for some reason, bipartisan- united Democratic Caucus gets behind straight with the Denver media. If they ship in this building stops in the mid- this issue, the Members of the Repub- want to keep this reputation, they dle of the Capitol rotunda, because in- lican Party jerk it from the agenda. have to come clean. This is not a fun- stead of dealing with the issue of gifts The American people are not going to gus. It can thrive in sunshine, but if this morning, we are dealing with an- stand for continual delay, for contin- they do not let it in the sunshine, peo- other piece of legislation all along. ued obstructionism, for continued ob- ple will wonder what kind of a fungus What has happened is, a giant pulled jection to really changing the way this the FAA is growing. stamp should be put on the legislative business of the Congress operates. They The taxpayers and everyone else appropriations bill. Right after the want an open House. They want the made a huge investment. This invest- Democratic Caucus votes for reform, kind of revolution they were promised ment was to add to the capacity. This and tries to change business as usual but have not gotten from our Repub- airport would have been totally closed here, deal with this issue of gifts, what lican colleagues. down in this storm had it been the old happens? The measure is pulled. This is a bill about transportation. It airport. This is to be an all-weather Mr. Speaker, I maintain that it is ap- deals with railroads. It deals with high- airport. When you have the air traffic propriate for this body to focus on re- ways. It deals with airplanes. Whether control tower built so poorly that you forming itself before, not after, it deals you fly, you ride the rails, or you take are going to have water coming in and with all of these substantive issues. It a trip somewhere, this can still occur people are having to read the instru- is particularly ironic, given the fact today under the rules that do not apply ments under plastic because the water that the gentlewoman from Utah [Mrs. in this House. might short something out, and now WALDHOLTZ] has circulated a letter to Last year the Democratic Congress, you cannot even have as many people all of her colleagues in favor of gift ban before I ever got here, passed a rule to up there and you cannot even let the reform, and yet we have had oppor- deal with that, passed it twice, and it cameras in to see it because no one tunity after opportunity after oppor- was killed by Republicans in the Sen- wants to admit it happened on their tunity to vote on it, not just to talk ate. watch. That is why people are cynical about it, not just to issue a press re- This year we have asked for action about government. lease about it, not just to posture on it again. All we get is it pulled from So I plead with the FAA, I plead with about it, but to vote about it and do the agenda so that the legitimate de- them, to go and come clean. Let the something about these gifts, and the sires of the American people to deal media see what happened, tell us how Republican majority has continually with the issue of real reform in this you are going to fix that. Do not put it voted the other way, voted against re- body, changing business as usual, have on my city. They did not do that. You form from the first day of this session been thwarted. If the American people oversaw it. Take the responsibility. when a gift ban item came up. Through make their voice known that they Stand up, stand for something, because June, twice, through July, and in Octo- want real change, not just phony I think the citizens of Colorado are get- ber of this year, the last time the legis- change, we are going to get that ting to be a little impatient with all of lative branch appropriations were up, change. this, everybody pointing at everyone the same thing happened, and now Mrs. WALDHOLTZ. Mr. Speaker, I else and then locking the doors so today, when we have an opportunity to yield myself such time as I may noboby can really get in and see. look in this box and see what gifts peo- consume. If the contractor made a mistake, go ple can still be given, the snow is about I am glad to have an opportunity to get the contractor. Tell us how you are to fall, I understand, in Colorado, talk about what is really happening on going to fix it. Make sure that airport where the gentlewoman from Colorado gift ban legislation in this Congress. I does what the taxpayers paid for: Be- just spoke. am very encouraged, Mr. Speaker, that October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10757 we are going to have an opportunity to cosponsor of that legislation, to join us the one adopted in the Senate, it never give this issue the full hearing and vote in cosponsoring that legislation, so becomes law. on the floor that it deserves. that, when we move it to the floor, we We have seen that one of the reasons The gentleman who just spoke ob- can have true bipartisan support of we have never gotten this passed is this jected to the fact that one item was this important legislation. body has passed it before, and it goes pulled from the legislative agenda Mr. Speaker, I yield to the gentleman to the other body, and it dies, or they today. However, Mr. Speaker, I think it from Texas [Mr. DOGGETT]. pass a different one or they never get is very important to note that last Mr. DOGGETT. Mr. Speaker, I want- together. night pursuant to a request from the ed to be sure that I am clear about What I was hoping is that we could minority there was a unanimous-con- what the gentlewoman has said. As I accept what the other body has done sent agreement entered into to add 3 understand, her position is we do not and then start with that as a new high- hours of general debate on the budget take up gift ban this morning because er level of morality on this issue to reconciliation package. The minority we will have an announcement of a then begin a new, a higher debate. Oth- asked for that time; the majority de- time at some future time, sometime erwise, I fear, if we go to hearings, I cided to accede to their request, a this year, next year, when the majority mean we did not even have hearings on unanimous-consent agreement was en- leader will tell us that we can take up Medicare or Medicaid. tered into. gift ban. Mrs. WALDHOLTZ. Reclaiming my As a result, another item was pulled Mrs. WALDHOLTZ. Mr. Speaker, re- time, Mr. Speaker, I am glad to be able from the schedule to allow that 3 hours claiming my time, we are not taking to report to the gentlewoman that of debate to be added to our agenda for up gift ban this morning because it is whatever we do this gift ban does not today. not germane to the Transportation ap- need to go back to the Senate because But in particular, Mr. Speaker, on propriations bill. the gift ban is a rule of the House and the gift ban legislation, last week Mr. DOGGETT. Mr. Speaker, if the will not need to be acted on by the those of us who have been working on gentlewoman will continue to yield, other body. So we have complete lati- this legislation from the beginning of and with reference to the scheduling, tude within the House to do what we this Congress received a commitment she is not suggesting, I am sure she was feel is appropriate without having to from our leadership, from the gen- here when I queried the gentleman consult with the other body. tleman from Texas [Mr. ARMEY], the from New York [Mr. SOLOMON], about Mr. Speaker, I yield 5 minutes to the majority leader, that by the end of this this at the conclusion of business last gentleman from California [Mr. week he would make an announcement night. She is not suggesting that the DREIER]. as to when we would take up the gift additional 3 hours of debate which was (Mr. DREIER asked and was given ban legislation. Mr. Speaker, I am scheduled for tonight until the legisla- permission to revise and extend his re- proud to report that yesterday, Mr. tive branch appropriations was pulled, marks.) ARMEY, in a discussion personally with that that has anything to do with this Mr. DREIER. Mr. Speaker, I would me, reaffirmed his commitment that gift ban, is she? like to once again, as my good friend by the end of Friday of this week, he Mrs. WALDHOLTZ. Mr. Speaker, I from Utah has, remind our colleagues will make an announcement as to when was not here when the gentleman dis- that we are debating the rule on the we will take up a vote on the gift ban cussed this with the gentleman from transportation appropriations legisla- legislation. New York [Mr. SOLOMON] last night. tion. I think that that is something Mr. Speaker, I think it is very impor- But I do know that the majority leader that we should recognize. tant that we allow this legislation to felt that it was important to allow the I was just a few minutes ago walking go through the hearing process before 3 hours of general debate that col- out in the Speaker’s hallway and was this measure comes to the floor for a leagues on his side of the aisle re- headed back up to the Committee on vote. I am not so vain, Mr. Speaker, as quested. And so this measure was Rules where we are at this point con- to believe that the bill is perfect in the pulled in an attempt to provide the sidering the rule for the reconciliation way that I introduced it, because the gentleman with the time that his side bill which will begin, as was said ear- gentleman said that I have circulated a has requested. lier, debate this evening and go letter on gift ban. I have done more Reclaiming my time, Mr. Speaker, I through tomorrow. than that, Mr. Speaker. I am the spon- think it is important that we move on. I heard the statement of my very sor of the gift ban legislation that I This is not germane to the discussion good friend from Texas somehow im- hope will come, that I believe will be of the rule that we are discussing. plying, or I inferred from this, that we the vehicle that we will discuss when Mrs. SCHROEDER. Mr. Speaker, will had not proceeded with the kinds of re- the gentleman from Texas [Mr. the gentlewoman yield? forms that he believed were necessary. ARMEY], the majority leader, makes his Mrs. WALDHOLTZ. I yield to the I have got to say that, having authored announcement. gentlewoman from Colarado. the opening day reforms, having But I am not so vain, Mr. Speaker, as Mrs. SCHROEDER. Mr. Speaker, I worked with, and I see my friend, the to believe that that bill cannot be im- just was wanting to make clear, the gentleman from Wisconsin [Mr. OBEY], proved through the hearing process. It gentlewoman said that there is going during 1993 on the Joint Committee on has not gone through the hearing proc- to be hearings on the gift ban legisla- the Organization of Congress that was ess yet. That will be a part of the an- tion before it comes to the floor. established. And he worked on the nouncement that will come later this Mrs. WALDHOLTZ. Mr. Speaker, issue of congressional reform before; week. what I said was that the majority lead- we spent hours and hours and hours. Mr. Speaker, I am glad that the mi- er will be announcing by the end of the We had 37 hearings in 1993; 243 wit- nority party this morning voted in con- this week, as he announced last week, nesses came before us in 1993. The ference to support the gift ban bill. a time at which we will take up gift former majority leadership, as every- Frankly, Mr. Speaker, we have had ban legislation. As the sponsor of the one knows, did absolutely nothing with some difficulty in getting some cospon- measure, it certainly is my intent and the report that came forward. It was sors from the other side of the aisle. I have expressed that to my leadership not until we won this new majority, The gentleman from California, Mr. and believe that they will follow and frankly many Democrats on a reg- BEILENSON, my colleague on the Com- through with that to provide for a ular basis remind me of this, it was not mittee on Rules, was one of the very hearing to see if this is a measure that until we won the new majority that we first to join me in sponsoring that gift cannot be improved in some way. were able to implement the greatest ban legislation. I appreciate that. Mrs. SCHROEDER. Mr. Speaker, if reforms that this institution has seen I would say, Mr. Speaker, to my col- the gentlewoman will continue to in a half century. leagues on the other side of the aisle yield, one of the concerns I have had, We all know what those reforms have that we welcome their support and in- and I just am sharing this for informa- been. They have been for the most part vite them, including the gentleman tion, is that once we introduce and received extraordinarily well: changing who previously spoke, who is not yet a pass a bill here that is different from the committee structure, eliminating H 10758 CONGRESSIONAL RECORD — HOUSE October 25, 1995 proxy voting, insisting on congres- I suggest that, when the House has last 8 or 9 months because it reminds sional compliance with laws imposed had an opportunity to vote on this me about Lucy holding that football on other Americans. measure and has been continually for Charlie Brown. Each time we get To claim that nothing has been done thwarted, it is time to give us an op- close to being able to debate these is- in the area of reform, as many have, portunity to take up the issue again sues and bring them to the floor, the unfortunately, is absolutely prepos- today. There is no reason, this body football is taken away. Another reason terous. will finish its business by mid-after- is given to us as to why we cannot de- My friend from Utah is the sponsor, noon under this new schedule. There is bate gift reform and lobbying reform. I as she has just said, of legislation deal- absolutely no way that this Congress think it is important that we keep ing with the gift ban issue. As we look cannot reform itself today, if we were those two issues together. at overhauling the entire makeup of permitted to do so. b the Federal Government, this clearly is Mrs. WALDHOLTZ. Mr. Speaker, I 1215 a priority and something that we are yield myself such time as I may I certainly will be encouraged if we going to be considering. But I believe consume. do have a date certain for gift ban re- that it is crazy to in any way imply I would simply remind the body that form to be brought to this floor. I that this historic 104th Congress has we are trying to move forward on a think it is important that we do so, but not brought about major reforms. I rule for the transportation appropria- we cannot forget that equally impor- hope very much that the American tions budget. I think it is important tant issue of lobbying reform. I find it people and our colleagues will recog- that we move forward so that we can somewhat perplexing and ironic that nize that. reach the other items on our agenda now the leadership wants to divide With that, I urge strong support of today, not only this bill. We have im- these two issues, bring the gift ban re- this rule that is being carried by my portant discussions to enter into re- form to the floor, but not bring the lob- friend. garding the budget reconciliation bill, bying reform to the floor. Now why is Mr. BEILENSON. Mr. Speaker, I which is probably the most important this? Why do we not want to move yield 2 minutes to the gentleman from bill that this Congress will take up this them together? Both bills or both Texas [Mr. DOGGETT]. year. measures have gone through the Sen- Mr. DOGGETT. Mr. Speaker, with all So I would simply say to my col- ate. They are both in excellent shape. due respect to my colleague from Cali- league that I do not think it is asking We should have the opportunity to de- fornia, while he may have made some too much of our majority leader to be bate these and move them forward. changes that Democrats recommended able to wait until Friday of this week I think that this legislative appro- in the last Congress, when it came to to make an announcement as to when priations vehicle is a very good vehicle, separating the lobby and the legisla- we will take up the gift ban measure and for my friends on the other side of tors, he has done absolutely nothing. and discuss other congressional reform the aisle who have not been through The only lobby this group cares about measures beyond that which we have this exercise before, I can assure them are the Girl Scouts and Catholic char- discussed here today so that we have that there are people, mostly people ities. They are all worked up about an opportunity to finish the budget who have been around here many, them lobbying. But when it comes to reconciliation bill, which we must many years longer than we have, who polluters, when it comes to loophole move forward on today and tomorrow. want to love these issues to death. lawyers, they have done nothing but to Then the very next day we can expect That is what they want to do, they fill this box to overflowing with gifts an announcement as to when we are want to love these issues to death. for Members of this House. going to move this important gift ban They do not want these issues brought The comments of the gentlewoman legislation and other congressional re- to the floor, and they are going to find from Utah are absolutely amazing. I forms forward. as many ways as they can to kill it. stood on this floor last night and asked Mr. Speaker, I would simply encour- That reminds me a little bit of the the gentleman from New York [Mr. age my colleagues on the other side of Paul Simon song ‘‘Fifty Ways To Leave SOLOMON] myself about the schedule the aisle who feel so strongly about Your Lover.’’ They are going to find 50 for today. There was no suggestion this issue to join me in sponsoring this ways to make sure these measures do that there would not be time today to legislation, as some of them have not not go into effect to affect this institu- take up the issue of gifts. Quite the yet done. tion. contrary, he indicated we would be de- Mr. Speaker, I reserve the balance of So, I think the people truly inter- bating on into the evening with ref- my time. ested in reforming this institution, I erence to this issue. Mr. BEILENSON. Mr. Speaker, I think there are people on both sides, The suggestion that we need to have would say to my friend from Utah that have to step up and say, ‘‘Enough is a hearing is an unusual one because the we appreciate her patience. If she will enough is enough. It is time that the lobby reform bill, if the gentlewoman give us about 5 minutes more, we will gift ban legislation comes to the floor, will go up to the Speaker’s dais, she be done. will find it sitting there. It has been Mr. Speaker, I yield 3 minutes to the and it is definitely time that the lobby- sitting there since it passed the Sen- gentleman from Wisconsin [Mr. ing legislation comes to the floor as well.’’ ate, not even a referral from the BARRETT]. Speaker of the lobby reform bill. Mr. BARRETT of Wisconsin. Mr. It is unfortunate that the legislative With reference to the gift ban itself, Speaker, I just want to follow up on appropriations bill was pulled. I am it is true that there was a secret some of the comments that were made hopeful, perhaps naively so, but I am closed-door meeting in front of the by my colleague from Texas because I hopeful that we will have enough push Ethics Committee concerning the pos- think he has made some important from people from both sides of the aisle sibility of a gift ban. They have had points. that, when these measures come up weeks and months to act on it, just as I have been involved, as the gentle- again in the next day or two, that the this body has had an opportunity to woman from Utah knows, in the bipar- leadership will finally acknowledge the act. The suggestion that we ought to tisan effort to reform this institution. reality that there is support from a delay again today in order to wait not I do so because I fervently believe that majority of people in this institution for action but for another promise from institutional reform is not a Demo- to vote on it, and I truly hope that we the majority leader that maybe some cratic issue. It should not be a Demo- do get a chance to vote on it. day, some year, some week, some cratic issue. It should not be a Repub- Mr. DOGGETT. Mr. Speaker, will the month we will get around to doing lican issue. It should be an issue that gentleman yield? something about this problem of gifts brings the parties together because it Mr. BARRETT of Wisconsin. I yield and lobby reform is the only thing is an issue that strikes at the integrity to the gentleman from Texas. crazy that I have heard, with all due of this institution. Mr. DOGGETT. Is the gentleman respect to the gentleman from Califor- I have to acknowledge, Mr. Speaker, aware that Speaker GINGRICH has kept nia who used that phrase. that I have been frustrated over the since July 26 the lobby reform bill that October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10759 the gentlewoman wants an announce- unanimous consent to take it up and propriations bill, or now in the trans- ment for us to wait on? It has been sit- consider it at this time so we can go on portation bill, because we cannot get ting there since July 26 and has not and vote it out of here right now if it an audience, and we cannot get a hear- even been referred to a committee for is such a great idea. ing, and when we raise it where it any hearing or any appropriate action. Mr. RIGGS. Reclaiming my time, might be vulnerable, we see the bill is Mr. BARRETT of Wisconsin. I was unanimous consent is certainly not taken from the schedule because there not aware of that until yesterday, and necessary for the gentleman to become may be a vote in support of this posi- again I think it is something that a cosponsor. All that is necessary for tion, and now we see that when it looks should move forward. the gentleman to become a cosponsor like gift ban is coming to a head, they Mrs. WALDHOLTZ. Mr. Speaker, I is for him to simply write something want to sever it from the lobbying bill. yield 2 minutes to the gentleman from out to that effect, and I would be happy The lobbying bill has been sitting at California [Mr. RIGGS]. to provide it in the slot down there—— the desk. We know that another bill Mr. RIGGS. Mr. Speaker, I thank the Mr. DOGGETT. Mr. Speaker, I ask can be sent, it can be sent to con- gentlewoman from Utah [Mrs. unanimous consent to add my name as ference, and our colleagues can finesse WALDHOLTZ] for yielding this time to a cosponsor to the legislation of the this, and the public will never get lob- me. I just wanted to clarify a point. gentlewoman from Utah [Mrs. bying reform that they are clamoring I came over to the floor hearing a WALDHOLTZ]. for and that they are demanding from rather lively, but nongermane, discus- The SPEAKER pro tempore (Mr. this institution. sion about a gift ban in the context of BARRETT of Nebraska). In the opinion Mr. Speaker, we cannot go through a the, as I understand it, transportation of the Chair the chief sponsor of the appropriations conference report, and I legislative dance. Our leadership went bill is responsible for that. through this legislative dance 2 years want to clarify a point that the gentle- Mr. DOGGETT. Mr. Speaker, I am woman made earlier. The gentleman ago, and we ended up with no results. asking unanimous consent. Our colleagues can go this legislative from Texas [Mr. DOGGETT] is one of the Mrs. WALDHOLTZ. Mr. Speaker, I more eloquent and dynamic speakers in dance again, and those of us who are believe unanimous consent is not nec- interested in lobby reform, gift reform, the House, is thundering along with essary. We welcome the gentleman in righteous indignation about the fact and election law reform, and even cam- support of our legislation. paign finance reform, we can sit here that the House has not taken up a gift- Mr. DOGGETT. She could do it right ban related legislation to date. She and watch the dance, and nothing will now by unanimous-consent request. happen, and the public will be deprived. made the point that she is the primary The SPEAKER pro tempore. It is We are entitled, as Members of this sponsor and author of a gift ban for only the responsibility of the chief House, to better than that, and the House Members, and I want to clarify sponsor to add names. public is entitled to better than that. again that the gentleman from Texas is REQUEST FOR IMMEDIATE CONSIDERATION OF not a cosponsor of the gentlewoman’s What they are entitled to is the consid- LOBBY REFORM LEGISLATION eration of this legislation. legislation. Mr. DOGGETT. Then, Mr. Speaker, I Mr. DOGGETT. Mr. Speaker, will the ask unanimous consent to take up and I appreciate proxy reform, but it does gentleman yield on that point? consider that bill at this time. no good if we do not allow proxy voting Mr. RIGGS. Actually, Mr. Speaker, I The SPEAKER pro tempore. The and the members who are sitting in the am asking the gentlewoman to clarify Chair has already denied that recogni- committee are there burping from the that point. tion earlier. dinners that they have had with lobby- Mr. Speaker, I yield to the gentle- Mr. BEILENSON. Mr. Speaker, I ists and others as they vote on legisla- woman from Utah [Mrs. WALDHOLTZ]. yield 2 minutes to the gentleman from tion that is before the committee. It is Mrs. WALDHOLTZ. That is correct. California [Mr. MILLER]. more important that we take care of Mr. RIGGS. Mr. Speaker, I yield to the severing of those relationships, the gentleman from Texas [Mr. Mr. MILLER of California. Mr. Speaker, the reason that we are forced that we reform the lobbying practices DOGGETT]. to discuss this matter on a nongermane around here and we get on with cam- Mr. DOGGETT. The gentleman is paign finance reform. That is what we aware that I was the third person in bill is because we are not allowed to discuss this matter when it is germane. ought to do, that is what the public this House to call for a discharge peti- wants us to do, that is what they tion on the gift ban last spring, long The Republicans, I believe three or four times now, have opened up the rules of thought our colleagues were going to before the gentlewoman from Utah do when they voted for them in the last [Mrs. WALDHOLTZ] bothered to even ini- this House to make minor changes to the rules and the runnings of this election, but that is not what has hap- tiate any action, but if it is such a pened, and it has not happened because good idea, why do we not pass her bill House, and yet they have refused even Speaker GINGRICH, majority leader today? at that time to take up the gift ban. ARMEY, they continue to thwart the Mr. RIGGS. Reclaiming my time, I All that is necessary for the gift ban in path of this legislation and consider- would ask the gentleman, if he feels this House is for the Speaker just to ation of it to the floor of the House. that strongly, to the point where he say ‘‘no’’ to the lobbyists and just to has signed a discharge petition, why he say ‘‘yes’’ to letting the bill come up. We ought to be able to deal with that is unwilling or unable to cosponsor the It affects only the rules of the House, and deal with it now, and the contin- gentlewoman’s bill. as the gentlewoman has pointed out, ued delay, when we have the rules up, Mr. DOGGETT. I am not only willing and it can be done in a matter of mo- it is not the right time; when we have to cosponsor it, I am willing to vote for ments, and we can be done with it, and the bill up, it is not the right time; it today, and that is what I am asking we can then go to the public and show when we have the conference report up, for, a vote on her particular proposal, them what we have severed, that rela- it is not the right time, it is not ger- but what she wants is to delay it—— tionship with lobbyists and with others mane. That is the dance of legislation Mr. RIGGS. Reclaiming my time, who seek on a daily basis to shower the that has kept us away from these kinds then the gentleman would have no ob- Members of this House with gifts hop- of reforms for the last 20 years. jection then if we were to prepare a ing to seek an audience, time, effort, or Mrs. WALDHOLTZ. Mr. Speaker, I form now and add his name as a co- whatever on behalf of their interests. would simply point out that the last 20 sponsor of the gentlewoman’s bill. We Many of us have done this in our own years have been controlled by the gen- will just drop it right down here at the offices, but it ought to be the policy of tleman’s party. In the first 8 months slot where it is appropriate to add co- this House, and what is standing in the we have accomplished extraordinary sponsors of congressional legislation at way is the Speaker and the majority change in this Congress. We are going any time. If the gentleman would like leader who want to keep telling us to enact a bill this week that will bal- to write that out, I would be happy to about the procedure that they want to ance the budget over the next 7 years, drop it in the slot. consider as opposed to the changes in and then the very next day our major- Mr. DOGGETT. I would ask unani- the laws, and therefore, we have to ity leader is going to announce when mous consent to do it and further ask raise this issue on the legislative ap- we will take up this legislation. H 10760 CONGRESSIONAL RECORD — HOUSE October 25, 1995 I think we are making progress, Mr. all of that in place want to continue Mr. WALKER. Mr. Speaker, reclaim- Speaker. I yield 5 minutes to the gen- the spending, and so they are looking ing my time, the fact is that what it at tleman from Pennsylvania [Mr. WALK- for every excuse possible to try to stop least has indicated is that the books ER], our colleague. the legislative appropriations bill from they kept were a mess and no respon- Mr. WALKER. Mr. Speaker, I thank being successfully completed. sible auditing firm could even tell us the gentlewoman from Utah [Mrs. So now they have latched on to lob- what really went on, because the books WALDHOLTZ] for yielding this time to bying reform, or gift ban reform, or are almost undecipherable. They were me. whatever it is they can come up with. an absolute scandal in the way they This has been such a fascinating dis- They come to the floor with packages kept the finances of the House, and cussion, and, as my colleagues know, it wrapped like Christmas presents and so yes, it does appear that some people would be laughable if some of these on, every gimmick in the world. I am took advantage of that scandalous kind people on the other side actually were surprised they do not go out on the of bookkeeping. not taking it seriously. lawn and hold a hearing in the rain Mr. BEILENSON. Mr. Speaker, I I mean here is a party that literally again on the issue because every pos- yield such time as he may consume to controlled the House for 40 years and sible gimmick they come up with to the distinguished gentleman from Wis- never did any of these things, and now try to explain why they want the sta- consin [Mr. OBEY], ranking member of they are all upset because they have to tus quo, but in reality the reality of the Committee on Appropriations. wait a day or two. I mean it is a joke. what is happening here on the floor Mr. OBEY. Mr. Speaker, I had not in- These folks, as my colleagues know, for today is we have got a bunch of people tended to get into this. I came over years made certain that none of this who do not want to cut congressional here to talk about the Transportation kind of thing ever got to the floor. spending, they do not want the re- appropriation bill. However, since I do Mr. Speaker, there has been more re- forms, they do not want the congres- have some considerable experience form in the first 9 months of this Con- sional spending cut, and they will use with the history of reform in this gress than we saw in the entire 20 years every excuse. place, I think I would like to put in that I have served here, and the gen- Now I realize that I am engaging in a some perspective what I have heard tleman from California [Mr. MILLER] nongermane debate here as well, and here on this issue. who just spoke, he was here before I the only reason why I did it is because I was appointed by the Speaker in got here. the other side has decided they are 1975 to chair the House Commission on So the fact is that we are seeing a going to have nongermane debate on Administrative Review, which was sup- number of reforms, and they are just the floor, which does raise an interest- posed to do a top-to-bottom reform of not coming as fast as some of the other ing question. They claim that what the House administrative structures, people on the other side would like they want to do is something about write a new code of ethics, and produce them to come because they are now in lobbies and gifts. What makes us think new rules on outside income. That was a position, not having much to do, they that they will obey the rules that we probably the most bloody and brutal do not have much in the way of policy set up under those provisions any more experience I have ever had in this that they are pursuing, they are losing than they obey the rules of the House place. It cost me a lot of friends, be- issue after issue, and so they have now by coming out here and having these cause we did some very tough things decided that everything they thought nongermane discussions? The fact is that a lot of people did not like. was wrong during the 40 years that was that they are subject to a point of I can recall at the time when John their control, they now try to bring order, that what they have been dis- Rhodes, who was then the Republican over and put on the heads of the people cussing is totally beyond the rules of minority leader, appointed his mem- who now control the body. the House, it ought not be discussed bers of my commission. He had the I mean this is a joke, my colleagues, out here today, and they are discussing courtesy to come to me and say ‘‘DAVE, and I mean it is even kind of a crummy having more rules that they say that this is going to be a tough job for you. joke. they will obey those when they cannot Understand, I am appointing Bill Fren- Now let us get to the real issue of obey even the simplest ones on the zel as the ranking Republican,’’ but he why they want to bring the legislative House floor. said ‘‘Just because you get his vote on appropriations bill out here and debate b 1230 these issues does not mean you will get it. The fact is what they are really Interesting subject matter, but it is a any other Republican vote, because against is the fact that the legislative joke. frankly, the political pressures in this appropriations bill actually cuts spend- Mr. RIGGS. Mr. Speaker, will the place are going to take over, and what- ing for the Congress. It is a real re- gentleman yield? ever you are going to pass, you are form. We actually for the first time are Mr. WALKER. I yield to the gen- going to have to pass on your own side reversing the trend of ever-increasing tleman from California. of the aisle.’’ That is very much what congressional budget and are actually Mr. RIGGS. Mr. Speaker, would the happened. We brought the administra- reducing the amount of money that gentleman agree that House rules were tive reforms to the floor of the House, comes to the Congress. And guess broken blatantly in conjunction with reforms which, among other things, what? When that went down to the both the House Bank and Post Office would have created the first profes- President, the President vetoed that scandals, and that that was during, of sional administrator in the House. I am bill. course, the Democratic Party’s control convinced we would never have had the Now here was a bill that cuts the of the House of Representatives? banking problem or any of the other amount of money going to the Con- Mr. WALKER. Mr. Speaker, reclaim- problems if we had had a professional gress substantially, and the President ing my time, yes, and they did every- administrator at that time. vetoed the bill. Now we have got folks thing possible to try to prevent us from However, when the votes came, we defending the President’s position. bringing those matters to the House were clobbered. We had significant de- They want to have some reason to vote floor. They did everything they could fections on my side of the aisle, we had against this bill that cuts the Con- to try to stop us from looking at that. a majority voting for it, a big major- gress, and so the fact is what we are Mr. RIGGS. If the gentleman will ity, but we had some losses on my side really hearing is from people who do continue to yield, Mr. Speaker, would of the aisle, and we got not a single Re- not want to cut legislative spending. the gentleman agree that the ongoing publican vote to take up those reforms For 40 years they had that spending audit by one of the big six accounting that we had worked so hard on. climbing. They had staffs around here firms of congressional finances, of the Through the years, some of them were that burst the seams of the place. We House of Representatives’ books, has later adopted, but they were adopted had office buildings full of staff. indicated many prima facie violations on a piecemeal basis because we had Mr. Speaker, we are now trying to of House rules, and that that audit is not been able to get them all done on cut the budget, and we are going to ac- an audit of the administration of the that day. And in fact a few of them tually try and sell off an office build- House of Representatives by the Demo- were actually put into the rules of the ing, and guess what? The folks who put cratic Party? House this year by the new majority October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10761 party. I congratulate them for doing Mr. Speaker, in ending, I would say With that, Mr. Speaker, I yield back that. It is about 20 years late that they we are on the Transportation bill, and the balance of my time, and move the came to that position, but better late we have no objections to the rule. I do previous question on the resolution. than never. I will take help on those is- want to thank the gentleman from The previous question was ordered. sues anywhere I can get it. Wisconsin [Mr. OBEY] for his helpful The resolution was agreed to. However, I simply want to take this and I think useful review efforts to A motion to reconsider was laid on time to point out that we will probably pass some reforms in this place, and sa- the table. hear, just as we did a long time ago on lute him for his efforts. Nobody has Mr. WOLF. Mr. Speaker, pursuant to those reforms, we are going to hear a been more deeply involved in trying to the provisions of House Resolution 241, lot of hypocrisy, because there are get the right kinds of things done I call up the conference report on the going to be people who say that they around here than the gentleman from bill (H.R. 2002) making appropriations really do want reform on gift ban and Wisconsin. I also would like to con- for the Department of Transportation on lobby reform, but they are going to gratulate the gentlewoman from Utah and related agencies, for the fiscal year find every way procedurally to drag [Mrs. WALDHOLTZ] this year for her ef- ending September 30, 1996, and for their feet, hoping in the end we never forts, to wish her well, and to express other purposes, and ask for its imme- finish the job. That, frankly, is at least the hope that in fact we will be able to diate consideration. partially what I think is going on right vote soon on this particular matter. The Clerk read the title of the bill. now. Mr. Speaker, I yield back the balance The SPEAKER pro tempore. Pursu- I just want to warn Members, Mr. of my time. ant to rule XXVIII, the conference re- Speaker, that when we were involved Mrs. WALDHOLTZ. Mr. Speaker, I port is considered as having been read. (For conference report and state- in this fight over outside income, for yield myself such time as I may ment, see proceedings of the House of instance, we were importuned by a lot consume. October 20, 1995, on page H10488.) of Members not to proceed because it Mr. Speaker, I appreciate the efforts would be unfair to the Members. And the gentleman from Wisconsin has GENERAL LEAVE when we tried to put limits on outside made on congressional reform in the Mr. WOLF. Mr. Speaker, I ask unani- income, for instance, I remember one past. I appreciate the efforts this Con- mous consent that all Members may Member of the House coming to me and gress has made in the last 10 months. have 5 legislative days in which to re- saying ‘‘DAVE, you don’t understand. It vise and extend their remarks on the Real progress was made in this new isn’t that my law practice takes any- conference report to the bill, H.R. 2002, majority, Mr. Speaker. We have al- thing away from my time. It is just and that I may be permitted to include ready limited the terms of committee that as I rise in seniority, the lobbies tabular and extraneous matter. chairmen, we have banned proxy vot- toss more business our way and I get a The SPEAKER pro tempore. Is there ing, so Members of Congress need to at- piece of the action.’’ I said, ‘‘Yes, I un- objection to the request of the gen- tend their committee hearings, rather derstand that is the deal. That is why tleman from Virginia? than simply allow someone else to ex- we are trying to change it.’’ And he un- There was no objection. ercise their authority for them. We cut derstood, all of a sudden, that this was The SPEAKER pro tempore. The gen- committee staffs by one-third. not a typographical error that we had tleman from Virginia [Mr. WOLF] will We have had a house audit that has in our bill, we were really trying to get be recognized for 30 minutes, and the resulted, unfortunately, in the prior something done with some teeth. gentleman from Texas [Mr. COLEMAN] I would simply say that there is, in books of this House receiving the low- will be recognized for 30 minutes. my view, nothing more important that est rating possible from the accounting The Chair recognizes the gentleman this institution can do to restore pub- firm hired to perform that audit. We from Virginia [Mr. WOLF]. lic confidence in it than to imme- have changed the committee structure, Mr. WOLF. Mr. Speaker, I yield my- diately deal with the issue of lobby re- and we intend to do more change of self such time as I may consume. form and gift ban. I have had it up to that committee structure in the fu- Mr. Speaker, today we present to the here with having to see television sto- ture. And, for the first time, we passed House the conference report to accom- ries about how Members will go off on the Shays Act, which will apply all of pany H.R. 2002, the Fiscal Year 1996 De- these phony seminars, that are really the laws regarding employment to Con- partment of Transportation and Relat- golfing vacations disguised as semi- gress, so Congress will live by the same ed Agencies Appropriations Act. nars, run by some interest group that laws that we impose on everyone else As Members know, the start of the lobbies this place. That should not hap- throughout the country. fiscal year began 3 weeks ago, and the pen. That should not be allowed. That These are real reforms, Mr. Speaker, time to conclude the remaining appro- should be outlawed today, not a week that were enacted by this Congress, priation bills wanes with each passing from now, not a month from now, but and I would suggest that those who be- day. The Department of Transpor- today. lieve in reform and want to see reform tation, like 11 other Government de- We tried to do that last year. We continue to pay attention to what is partments, is operating under the passed it in this House. It was bottled going to happen by the end of this strict terms of the continuing resolu- up in the other body by the majority week as we announce a schedule for tion. This conference report will pro- leader, and I would say the record on moving forward on additional reforms vide funding to further the important that is clear. I fully agree with the gen- that were not sufficiently supported in operation of transportation programs, tleman from California [Mr. MILLER] the past, but I believe will be passed by including air traffic control, Coast and the gentleman from Texas [Mr. this Congress. I welcome and am en- Guard operations, and other critical DOGGETT] when they say that this mat- couraged by the attention and the in- transportation safety programs outside ter ought to be disposed of now and im- terest from the other side of the aisle the continuing resolution. mediately. to join with those of us who have been The Transportation bill always re- I have been involved in these reform working on this issue to get these re- quires a delicate balancing act, and efforts for some 20 years. I know foot forms passed in this Congress. this year proved to be no different. The dragging when I see it, and I have seen With that, Mr. Speaker, I would sim- conferees have had to deal with com- an awful lot of it the last 3 months. I ply remind my colleagues that we are peting demands for very limited funds. think the gentleman from California voting on the Transportation appro- The conference agreement represents [Mr. MILLER] is right on when he de- priations bill, that this is an important the very best effort of the conference scribes where that foot dragging is bill that has received support from committee to achieve a balanced and coming from and why it has to change. both sides of the aisle. I would urge my fair bill, and may I say to colleagues on Mrs. WALDHOLTZ. Mr. Speaker, I colleagues to support the rule and the both sides, a bipartisan bill. This bill reserve the balance of my time. bill so we can move forward in making has been totally and completely bipar- Mr. BEILENSON. Mr. Speaker, I some substantial investment in trans- tisan. We did not make any decisions yield myself such time as I may portation infrastructure in our coun- in the bill based on partisanship, and consume. try. we hope and pray, Mr. Speaker, that we H 10762 CONGRESSIONAL RECORD — HOUSE October 25, 1995 can continue that for many years to Despite suggestions made, and I was limitation. In total, highway spending come. somewhat disappointed to see this, by will increase nearly half a billion dol- The conference report before the the National Air Traffic Controllers lars over comparable fiscal year 1995 House today totals $12.5 billion in dis- Union, the conference agreement does levels, to a level that is only half a bil- cretionary budget authority, and $11.4 not force the disestablishment of any lion below the fully authorized level of billion in new outlays. The conference existing management labor agreement $20.4 billion. report is below the subcommittee’s al- or lead to the dissolution of any union The conference report includes no location for discretionary budget au- currently representing the FAA em- special highway demonstration thority, and just at its allocation for ployees. projects, returning some $350 million outlays. The total budgetary resources Mr. Speaker, let me be clear about appropriated last year in Federal high- provided, including new budget author- this and quote from the statement of way aid to the States. Doing so pro- ity, limitation on obligations, and ex- managers, and I quote: ‘‘The conferees vides greater equity among the States empt obligations, is $13.1 billion in do not intend that the personnel man- and allows State Governors and depart- budget authority, and $37.3 billion in agement reforms in this bill force the ments of transportation to determine outlays. disestablishment of any existing man- the appropriate expenditure of limited The agreement represents an in- agement-labor agreement, or lead to Federal highway assistance. Federal crease of $1.5 billion in budget author- the dissolution of any union currently highway demonstration projects have ity over last year. However, this figure representing FAA employees.’’ gone the way of the past. is a bit misleading. If the totals are ad- It is interesting that when the air Mr. Speaker, I think everyone agrees justed to exclude a rescission of $2.6 traffic controllers came by to see us, that this is the right thing to do. Every billion in contract authority that does they raised the issue of the 5 percent member in the House and in the Senate not fall within the jurisdiction of the pay differential. The House went with will now be treated fairly. It will not Committee on Appropriations, but was the 5 percent pay differential, because matter that you happen to be particu- enacted by Congress this year, the con- we think it is important to support the larly powerful or famous or on a par- ference report actually reduces spend- air traffic controllers. The Senate did ticular committee or having voted a ing by $1.1 billion below comparable not. Yet now we hear not that the air certain way or having come from a cer- fiscal year 1995 levels. traffic controllers union is grateful tain region or having known somebody. I would like now, Mr. Speaker, to that this was done and they appreciate Everybody now will be treated fairly, turn to some of the specific provisions what the committee did. They now and I think that is something on which of the conference report. First, the con- come in with something that they both the Republican party and the ference agreement drops the Senate never raised with us during a meeting Democratic party can agree. provision which designates the Na- on the day of the conference when they Mr. Speaker, the agreement provides tional Highway System. I have been as- spoke to us; they never even raised the $2.053 billion for transit formula sured by the chairman of the Commit- issue. They never even raised the issue. grants, the midpoint between the These provisions, Mr. Speaker, would tee on Transportation and Infrastruc- House and Senate proposed levels. not become effective until April 1, 1996, ture that the conferees are making Within this amount, $400 million is allowing for sufficient and adequate re- progress on that piece of legislation, available for operating assistance, a re- view by the appropriate authorizing and that States will soon be in receipt duction of $310 million from last year’s committee. In the wake of the worst of some $5.4 billion in highway appor- level, and $100 million below the level year in aviation safety and with equip- tionments that are being held pending requested by the President. the enactment of the NHS. It is imper- ment failing on a nearly daily basis, as Recognizing the limited ability of ative that the NHS be designated very we heard from the gentlewoman from smaller and more rural transit provid- soon, as the withholding of $5.4 billion Colorado [Mrs. SCHROEDER] when she ers to respond to reductions in Federal in NHS and interstate maintenance talked about the Denver Airport situa- subsidies, the conference agreement funds threatens hundreds of thousands tion, FAA personnel procurement re- provides that operating assistance to of construction jobs and the Nation’s forms are necessary. In fact, people urbanized areas under 200,000 not be cut infrastructure. would come and say we need to do more than 25 percent from last year’s After the worst year in aviation safe- something. If you just exempt the FAA level. ty in decades, the conference agree- from procurement and personnel regu- ment provides $4.7 billion for the oper- lations, we can do some of these things, A total of $3.375 billion is provided ation of the Federal Aviation Adminis- and safety is so important. So we did for the Coast Guard. These funds are tration and the Nation’s air traffic con- this in order to bring about these safe- supplemented by an additional $300 trol facilities, $110 million over last ty changes, and we did it, I might say million to be transferred to the Coast year’s and slightly above the adminis- in fairness to the gentleman from Guard from the Department of Defense, and I appreciate the DOD appropria- tration’s request; let me say it again, Texas [Mr. COLEMAN], in a bipartisan above the administration’s request. way. tions subcommittee doing that, be- So I think when you come to the cause we would have been very hard b 1245 FAA, it is safety, safety, safety. pressed had we not had the good co- In addition, $1.9 billion is provided Mr. Speaker, the conference agree- operation of Chairman YOUNG and also for FAA facilities and equipment. ment, as I said, restores the reduction Senator STEVENS on the Senate side. In The conference agreement includes of $45 million for the 5 percent paid total, funds for the Coast Guard rise $159.6 million above the President’s re- bonus for air traffic controllers. How- $108 million over fiscal year 1995 levels. quest for equipment to enhance safety ever, in order to accommodate the $88.6 Program increases, however, came at and capacity of the aviation system, million estimated for this program, the the expense of other programs, like restoring funds to the FAA for safety conferees were required to hold funding Amtrak. Federal subsidies for Amtrak equipment, such as airport surface de- for the airport improvement program are curtailed by 20 percent, falling tection systems, wind sheer detection to the fiscal year 1995 level of $1.45 bil- from $793 million in fiscal year 1995 to systems, improved weather detection lion. The conference report drops con- $635 million in fiscal year 1996. Other and forecasting systems, and replace- troversial language relating to work- program reductions include: essential ment for computers at Aurora, IL, and ers’ compensation. The conference re- air service, down $10.8 million; the our other centers. port also provides new budget author- northeast corridor improvement pro- In addition, the conference agree- ity and obligation limitations for the gram, down $85 million; transit operat- ment also provides procurement and Federal Highway Administration total- ing assistance, down $310 million; tran- personnel reform for the FAA. These ing almost $20 billion. sit research and development, down reforms would permit the FAA to oper- The bill includes $17.550 billion for $6,8 million; pipeline activities, down $6 ate much more efficiently and are fully the primary Federal-aid highway pro- million. supported by and included, in part, and gram, and an additional $2.3 billion for In total, the conference report kills at the request of the administration. highway programs exempt from the 20 programs, including local rail October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10763 freight assistance, the interstate trans- port and in a joint statement of the the Majority Subcommittee staff: John fer grants for transit, the right-of-way managers. H.R. 2002 is a fair and bal- Blazey; Rich Efford; Stephanie Gupta; revolving fund, numerous Coast Guard anced and bipartisan bill. It represents Linda Muir; Deborah Frazier; and Ken and FAA activities, and supportive a compromise between the House and Marx; from the Majority associate service of the Federal Highway Admin- the Senate. It falls within the commit- staff: Lori-Beth Feld Hua; Glenn istration. tee’s 602(b) allocation, and has the sup- LeMunyon; Connie Veillette; Jennifer Consistent with the will of Congress, port of the administration. Miller; Bill Deere; Ray Mock; Sean the Interstate Commerce Commission Mr. Speaker, I spoke to Secretary Murphy; Steve Carey; and Paul is eliminated in fiscal year 1996 and is Pen˜ a on Friday, and he said that this Cambon; from the Minority Sub- funded at $13.8 million only for the bill would be signed, that the adminis- committee staff: Cheryl Smith; and first quarter of the fiscal year. An addi- trator was in agreement. In fact, all in- from the Minority associate staff: tional $8.4 million is provided for the dications, as I said, from the White Christy Cockburn; Kristen Hoeschler; successor to the ICC and once enacted House as well as the Office of Manage- Jim Jepsen; Barbara Zylinski-Mizrahi; into law by an authorization Adminis- ment and Budget, I assume, are certain and Paul Carver. trative activities of the Department that the President will sign the bill. I also want to thank Senator are also trimmed, including awards and Mr. Speaker, it does deserve the sup- HATIFELD, personally somebody that I bonuses, an 8 staff in the office of the port, frankly, of all of the Members, have always admired for many years. It Secretary and 10 political appointees and I urge its adoption swiftly. was a privilege for me to have the op- department-wide. The Department is I want to thank all of the members of portunity to work with him. He was a required to consolidate or colocate its the committee on both sides of the complete gentleman, and we really extensive field offices saving $25 mil- aisle for their help and their coopera- never had any differences that were lion in this fiscal year. tion. I also want to pay a tribute to all Mr. Speaker, the conference agree- of the staff members, and identify really the type that you sometimes ment prohibits training that is offen- them individually, for the good and the think about. So I just want to thank sive to Federal workers including the diligent work that they have done on Senator HATFIELD and his staff and the HIV-AIDS and diversity training which both sides. It was a new team, a new Members of that side for their work. was so controversial. operation, and they did a good job. I Mr. Speaker, I insert the following Mr. Speaker, additional details of the would like to acknowledge the follow- information for inclusion in the bill are addressed in the conference re- ing staff who worked on this bill: from RECORD: H 10764 CONGRESSIONAL RECORD — HOUSE October 25, 1995 October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10765 H 10766 CONGRESSIONAL RECORD — HOUSE October 25, 1995 October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10767 H 10768 CONGRESSIONAL RECORD — HOUSE October 25, 1995 October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10769 Mr. Speaker, I reserve the balance of going to be with respect to air traffic we were going to be in the majority, my time. controllers and FAA employees some the first thing I asked for was a posi- Mr. COLEMAN. Mr. Speaker, I yield weeks prior to the conference, so the tion to serve on this subcommittee. myself such time as I may consume. chairman may recall that I had raised The reason I wanted to serve on this (Mr. COLEMAN asked and was given that issue with him. The conference subcommittee is because historically it permission to revise and extend his re- agreement does charge the FAA Ad- has been an opportunity to pick and marks.) ministrator with developing a new per- choose, like from a Christmas tree, spe- Mr. COLEMAN. Mr. Speaker, I want sonnel system which would give the cial projects for my own home district. to join with Chairman WOLF, the gen- FAA greater flexibility in hiring and I knew as soon as BOB LIVINGSTON tleman from Virginia, in supporting firing, determining promotions and told me that he had assigned me to this the conference report on H.R. 2002, the pay, training and location of employ- subcommittee that it was going to be fiscal year 1996 Transportation and re- ees. clear sailing for SONNY CALLAHAN be- lated agencies appropriations bill. The It is true, Mr. Speaker, that I op- cause my highway projects, my dem- conferees faced a tremendous chal- posed in conference the committee ma- onstration projects, my airport lenge, Mr. Speaker, in determining how jority decision to allow the FAA ad- projects, and everything, just like it to make critical investments in our ministrator to waive current law per- has been for the last 20 years, were Nation’s transportation infrastructure taining to labor management and em- going to be in that bill because I was under what were very tight budget con- ployee relations’ issues. sitting at the table bargaining. straints given us as a result of the ac- b How surprised I was at the first tions of this Congress on the budget in 1300 meeting when the chairman called us our 602(b) allocations. I think this is exactly the wrong together and said there are going to be We were $100 million in budget au- time to be doing that. When we discuss no demonstration projects. I smiled thority and $193 million in outlays the issue of being able to have a reor- somewhat, saying, yes, I know. But we below the original House 602(b) target ganization to put into jeopardy or to still are going to get them, is what I for the bill. Accordingly, we did not do cause fear among employees about thought in the back of my mind. what many of us on our side of the whether or not they will continue to But let me compliment the chair- aisle believed we should have done in have the ability to be represented by man. He stood his ground against some many, many areas. Nonetheless, I be- their current union management con- of the most powerful, some of the most lieve that this bill has the support of tract, whether or not we are going to persuasive people in the House and the the administration and that the Presi- rewrite labor law in this reorganization Senate, and he did not budge one inch. dent will indeed sign it. or not, I think is bad policy, particu- This is responsible government. Mr. Speaker, the statement of man- larly in an appropriation bill. No, I did not get the special 14 agers I think amply documents the We all know that we have authoriz- projects that I wanted to get. We will final product of the conferees on the ing committees in the House and the get them sooner or later, but we will do transportation bill as was alluded to by Senate to take testimony, to deal with it the responsible way, by giving the Chairman WOLF. issues such as these. My preference all money to the rightful committee or At this time, Mr. Speaker, I would along was that we not do that in this the rightful agency under our jurisdic- only make a few statements with re- legislation. tion, and we will do it in competition spect to the issue of reorganization I think the right thing to do is to let with a fair competition with all States. within the FAA. I understand that this those committees properly address the But we are doing this because of one was a critical issue, a matter of high matter through a much more delibera- man and certainly with the coopera- priority not just of the Republican ma- tive process than our appropriations tion of the minority. jority, but indeed Secretary Pen˜ a came could have given it had we even done I do not want to take anything away forward very early on, prior indeed to so. We really did not take into account from them, because I did not hear that this Congress even convening, telling various and sundry, oftentimes very much argument to his philosophy. But us how it was that the administration complicated, labor relations issues in for the first time in at least 20 years we intended to do the kinds of cuts, to any hearings. We just did not do that. have a responsible transportation bill make the kinds of streamlining that he I believe that in the transportation that no one can come back next month felt the Department of Transportation appropriations bill, with the personnel and say, ‘‘Look what you did. You gave should engage in in order to more ef- reform provisions not becoming effec- these special projects without any fectively serve the American people. tive until April 1, 1996, I am very hope- meaningful purpose all of this money I would say in that regard, Mr. Chair- ful that that will give time to the ap- simply because of political pressure man, that the Congress, in taking up propriate authorizing committees in and compromising, trying to get a overall the issue of having the FAA ad- the House and the Senate, ultimately a transportation appropriation bill ministrator, we require him in this leg- conference, and hopefully ultimately through this House.’’ islation to develop new personnel and signing into law, moving to correct Mr. Speaker, this Congress owes a acquisition systems for the FAA. I am what I consider to be a problem in this debt of gratitude to the chairman, and one, and I think I can speak for most of bill. It is simply we did not waive that this country owes him a great debt of the Democrats on our side in saying as one of the things we could have gratitude for the responsible way in that we support freeing the FAA from waived, and that is the reason I offered which he has handled this bill. many problems that may indeed be un- that amendment which failed, so that Mr. COLEMAN. Mr. Speaker, I yield 4 dermining its ability to modernize the we could waive that and not do this in minutes to the gentleman from Wis- air traffic control system; and we want an appropriations bill. consin [Mr. OBEY], the ranking member to be sure, as does the chairman, that With that having been said, I will on the full Committee on Appropria- we respond efficiently to the needs of come back to some of the issues a bit tions. the aviation industry and all airline later. Mr. OBEY. Mr. Speaker, I rise in sup- passengers. Mr. Speaker, I reserve the balance of port of this conference report. I simply Air traffic control system failures in my time. want to make a few short remarks Chicago, New York, Leesburg, Oakland Mr. WOLF. Mr. Speaker, I yield 3 about it before we vote. and, just recently, Dallas highlight all minutes to the gentleman from Ala- I think the agreement reached by the too dramatically that the FAA’s prob- bama [Mr. CALLAHAN], a member of the conferees is, for the most part, a fair lems are real and do need immediate committee. agreement that respects the priorities attention. Mr. CALLAHAN. Mr. Speaker, I of the House and recognizes the con- The personnel reform section of this thank the gentleman for yielding me flicting pressures on us as we try to legislation, I want to correct only one the time. work in a very difficult budget situa- statement made by the chairman and Mr. Speaker, admittedly at this time tion. that was certainly a lot of us were rais- last year when we became the major- I am especially pleased, on a personal ing the issue about where we were ity, or thereabouts when I knew that note, that my State has continued the H 10770 CONGRESSIONAL RECORD — HOUSE October 25, 1995 progress which it has made the past meet decent standards of decency in FAA reform will move further tomor- few years in receiving a fair share of dealing with the employees of that row when my friend, the gentleman Federal highway funds. I appreciate agency. I think Congress has a right to from Tennessee [Mr. DUNCAN], the the fact that this committee has been expect that and so do the workers at chairman of the Subcommittee on helpful in seeing to it that we do not that agency. Aviation, will hold a markup of the make or that we do not experience any Mr. WOLF. Mr. Speaker, I yield 3 Duncan-Lightfoot independent FAA significant backsliding in that respect. minutes to the gentleman from Iowa bill. I would note that there is not as [Mr. LIGHTFOOT], a member of the com- Again, in closing, let me commend much in this bill as we would like to mittee. the gentleman from Virginia [Mr. have for highways or for airport invest- Mr. LIGHTFOOT. Mr. Speaker, I ap- WOLF] and the gentleman from Texas ments, but given the fact that the preciate the gentleman yielding me the [Mr. COLEMAN] as well as the sub- 602(b) allocation, which is set by the time. committee’s fine staff: John Blazey, Chair of the committee, provided less Mr. Speaker, I rise in support of this Rich Efford, Stephanie Gupta, Lori- funding for that than we would have conference report. Beth Hua, Debra Frazier and Linda liked, the committee had no choice but I would, first of all, like to commend Muir. Without their help, we could not to produce a bill within those limita- the fine work of the gentleman from get any of this done. They have done a tions, and I think it has done a fairly Virginia [Mr. WOLF]; the chairman, and very fine job. reasonable job under those cir- the gentleman from Texas [Mr. COLE- I urge the adoption of this report. cumstances. MAN], the ranking minority member, in Mr. COLEMAN. Mr. Speaker, I yield 4 I would note that there is a signifi- putting this package together. I think minutes to the gentlewoman from Cali- cant reduction in transit operating they have done an excellent job of de- fornia [Ms. ESHOO]. subsidies for communities around the veloping and guiding this important Ms. ESHOO. Mr. Speaker, I thank the country. Communities are not going to funding bill through the entire process. gentleman from Texas for yielding me like that. I know some communities in I believe this is a conference report the time. my own district are going to be uncom- that we all can support. The House and Mr. Speaker, I rise for the purpose of fortable about it. I wish it could have Senate conferees have developed a engaging the distinguished chairman of been otherwise. But the fact is if the transportation funding bill which funds the Transportation Appropriations public is asking for budget cuts, they our Nation’s urgent infrastructure Subcommittee in a brief colloquy re- have to expect that they are going to needs while meeting the tough first- garding a critical bay area transpor- get budget cuts, and this is one of the year targets of our drive to balance the tation project. The Tasman Corridor places where those cuts are going to Federal budget. light rail project is an integral piece of bite. The aviation funding levels in this the local rail agreement fashioned by I hope that we can make some ad- bill will allow us to move forward with our regional metropolitan planning or- justments in the future, but, frankly, high-priority safety projects such as ganization, the Metropolitan Transpor- it is probably going to be tougher next the new air traffic control system tation Commission. All of the bay area year than it was this year. which will finally take us out of the jurisdictions are a party to this agree- I would make just one observation vacuum tube era. ment which represents the best in local with respect to the personnel reforms By rejecting a Senate proposal for planning and decisionmaking. When at the Federal Aviation Administra- new aviation taxes, we have taken the the California Supreme Court on Sep- tion that have been mentioned by both first important step toward rejecting tember 28 invalidated the so-called the subcommittee chairman and the the administration’s misguided claim Measure A, a half-cent sales tax dedi- gentleman from Texas [Mr. COLEMAN], of a pending aviation funding shortage. cated to many important highway, the ranking member. I think all of us Frankly, a close examination of future commuter rail, and transit construc- wanted to give the FAA additional aviation funding needs does not auto- tion projects in Santa Clara County, ability to reorganize its shop, but I matically suggest a need for more avia- the planned-for local match for the want to say that I think that a number tion taxes, and the conferees recog- Tasman project was assumed to be lost. of us have concerns about the lack of nized that fact. In fact, with the per- Due to the perseverance of all involved, protections which we feel are in this sonnel and procurement reform in the in the few short weeks since the ruling, bill for workers’ rights during that re- bill, we may find that we have more the Tasman Corridor plan has been re- organization process. The bill, in our than adequate money within the FAA. vised to reflect the new fiscal realities. view, does not preserve existing statu- The personnel procurement reforms It has been proposed that only the west tory requirements pertaining to labor- we have put in place will save tax- extension to Mountain View be built at management and employee relations’ payers’ money, at the same time accel- this time. This segment is compelling. issues, and that concerns us very much. erate the modernization of the FAA The 7.5-mile line is expected to cost I would simply say to the FAA that, and drag them out of the 1950s into the $125 million less than the original in exercising the prerogatives which 1990s. project, with 50 percent of its funding they will have under this legislation, I Contrary to what some might say, an derived from Federal Sec. 3 New Start would urge the agency to proceed with FAA personnel reform plan will not funds. Of the $122 million in proposed utmost caution; and I would urge them disband the unions. In fact, with the new starts funding, some $33 million to recognize basic elements of fairness gentleman from Virginia [Mr. WOLF] as has already been appropriated and as they deal with their employees. Be- chairman of this committee and his dedicated to the Tasman project by the cause, if they do not, I think this Con- strong support for Federal employees, MTC. The remainder of the funding gress will and should in short order be that is a great stretch of the imagina- will come from identified State, local right on their tail; and I think the FAA tion in the first place. But what it will and ISTEA flexible funding sources. will wish that they had behaved in a do is give the administrator the flexi- This revised plan has the unanimous sensitive manner. bility that the administration re- backing of the transit agency board, I would hope that, given the author- quested and needs to make FAA run in and I expect shortly will be approved ity which they have been given by this a more efficient way. by the MTC and later included in the committee, which I think is too broad, We have also included language in California Transportation Commis- I would hope that they would exercise the statement of managers rec- sion’s revised States Transportation that authority with great discretion. ommending the FAA establish a high- Improvement Program. We will be watching. level industry working group to assist Mr. Speaker, particularly in view of Let me also say that I will hope the in developing the FAA’s personnel and these positive developments, and in authorizers would take note of the lack procurement reform plans. This is the deference to the local and regional of clarity in this bill on that issue, and first step toward a permanent FAA planning process which has served us I would hope that the authorizers management advisory committee. well, I would ask if the chairman would see to it in legislation that they These FAA reform provisions are a agrees that if the revised Tasman develop that the agency does, in fact, start. I am pleased to say the cause of project secures all requisite Federal, October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10771 State, and regional approvals in a $350 million in Federal highway aid to some of the problems some of the cuts timely fashion, the $33 million in unob- the States. Doing so provides greater might cause. ligated balances referenced in the con- equity among the States and allows In addition, they are able to carry ference report may be provided by the State Governors and departments of forward some of the arguments that we MTC for the commencement of con- transportation to determine the appro- as Members literally in the committees struction on the Tasman West exten- priate expenditure of limited Federal and in conference do not always get to sion. highway assistance. hear. I particularly want to thank and commend the persons who work hard b This bill builds America. We provide 1315 a network of transportation that on the staff. Mr. WOLF. Mr. Speaker, will the gen- moves America—its people, its prod- In addition, if I might, Mr. Speaker, tlewoman yield? ucts, its services—across town or I think it would be wrong for any of us Ms. ESHOO. I yield to the gentleman across the Nation. This bill provides as Members standing here today to from Virginia. necessary funding to make our citizens talk about a transportation bill that Mr. WOLF. Mr. Speaker, yes, that is mobile and allow our goods and serv- has been nearly a year in the making my understanding. ices to get to market. It creates jobs, to not also signal our appreciation to Ms. ESHOO. Mr. Speaker, I would builds our Nation’s infrastructure and certainly our colleagues on the com- like to thank the chairman for his un- ensures the safety of our traveling pub- mittee. I know a number have spoken derstanding. I am very grateful for his lic. from the other side. I only wanted to thoughtful response. This is a good, solid bill. I urge my highlight the fact that I have been on I would also like to acknowledge the colleagues to support it. my side of the aisle blessed with having gentleman’s staff that has worked with Mr. COLEMAN. Mr. Speaker, I yield 2 wonderful cooperation, a lot of history, us on this. I look forward to working minutes to the gentleman from New by the way, from Members who are ac- with the gentleman in making certain York [Mr. NADLER]. tually more senior than I on this par- that the plan for the Tasman West ex- Mr. NADLER. Mr. Speaker, I rise ticular subcommittee. tension is financially sound, that it is today to thank the gentleman from I wanted to thank the gentleman accountable, that it is responsible and Virginia [Mr. WOLF], the chairman, and from Wisconsin [Mr. OBEY], the gen- that it continues to enjoy the impor- the ranking member, the gentleman tleman from Illinois [Mr. DURBIN], and tant broad-based support it has had in from Texas [Mr. COLEMAN], and all the certainly one of the more important the past. members of the conference committee Members because of his status as the Mr. Speaker, I yield to the gentle- for holding fast in the face of strong ranking member on the Committee on woman from California [Ms. LOFGREN] opposition from the other body on sec- the Budget, the gentleman from Min- who would like to make some com- tion 501 of the House version of the nesota [Mr. SABO], and one of our ments on this. transportation appropriations con- newer Members but a Member who un- Ms. LOFGREN. Mr. Speaker, I would ference report. derstands mass transit in its very in- like to thank my colleague, the gentle- This section, an amendment origi- tricate forms, the gentleman from woman from California [Ms. ESHOO] for nally offered by myself and by the gen- Pennsylvania [Mr. FOGLIETTA], and all taking the lead in this colloquy as well tleman from Wisconsin [Mr. NEUMANN], of their staffs for their advice and as my other Bay Area colleagues on the gentleman from California [Mr. counsel as well. both sides of the aisle for coming to- ROYCE], and the gentleman from Min- Mr. Speaker, I yield 2 minutes to the gether in support of the Tasman light- nesota [Mr. MINGE], provides that no gentleman from New Jersey [Mr. rail project. funds appropriated in this bill may be PALLONE], who wanted to discuss some I particularly would like to thank used to tear down and move a few hun- of the issues pertinent to the Coast the chairman for reaffirming his com- dred feet at a cost of $300 million a Guard. mitment to local transit agencies and highway we just finished rebuilding in Mr. PALLONE. Mr. Speaker, I thank their authority over transit funding de- place for $90 million. the gentleman from Texas for yielding cisions. The only purpose of this proposed time to me. Mr. WOLF. Mr. Speaker, I yield 4 boondoggle was to support a proposed I wanted to indicate support for the minutes to the gentleman from Califor- luxury housing project being developed conference on two fronts. One is with nia [Mr. PACKARD], a member of the and to make the views of this housing regard to the office of pipeline safety. committee. project being developed in my district I think some of the Members know Mr. PACKARD. Mr. Speaker, I rise by Donald Trump and his business as- that almost 2 years ago now in my con- today in support of the fiscal year 1996 sociates. This measure was supported gressional district in New Jersey we transportation funding conference bill. unanimously by sides of the aisle and had an explosion, a natural gas pipeline Chairman FRANK WOLF deserves high shows how this body can come together explosion in the area known as Durham praise for his hard work and diligence on issues to benefit the American tax Woods. As a consequence of that, I re- in structuring funding for our Nation’s payer. Again, I want to thank the lead- alized how significant funding levels transportation infrastructure. ers of the conference committee for for pipeline safety were, not only in This bill continues Congress’ invest- their support in this matter. terms of what has to be done in terms ment in the Nations infrastructure, Mr. WOLF. Mr. Speaker, I have no of investigation but, even more impor- providing $12.5 billion in discretionary further requests for time, and I reserve tant, in terms of prevention. budget authority for highways, transits the balance of my time. The amount of money that is pro- systems, airports, and the Coast Guard. Mr. COLEMAN. Mr. Speaker, I yield vided in this conference bill for pipe- Also included in this bill, is a provision myself such time as I may consume. line safety is better, significantly bet- I wholeheartedly support. It denies I would only attempt to, if I could, ter than what I thought might result. I funding for HIV/AIDS awareness train- since I do not have any other requests am very pleased with that because I ing unless it specifically relates to the for time of any Members that are here know it will allow us to continue to do workplace rights of HIV-positive em- to simply add, if I might, in closing, the kind of work that needs to be done ployees or to the medical ramifications my appreciation for the fine work and to prevent accidents as the one that oc- of HIV/AIDS. hard effort of the gentleman from Vir- curred in Edison, in my district. In tight fiscal times such as these, ginia [Mr. WOLF], the chairman, and I also wanted to congratulate the Congress must evaluate all Federal the staff that they assembled, Mr. conferees and the bill on the fact that, spending and determine where we can Speaker. All of us know that we cannot with regard to the small boat Coast get the most bang for the buck. We do these jobs without the hard work of Guard stations, there is language that took a long hard look at the merits of a lot of very dedicated and fine men would prohibit their closures. Those of every program in our bill. and women who help us put together us who fought very hard on the House For example, the conference agree- these numbers so that they work, but floor, who felt that the small boat plan ment includes no special highway dem- also they negotiate many times for us that the Coast Guard had put forward onstration projects, returning some with the agencies so we can understand was not going to save a significant H 10772 CONGRESSIONAL RECORD — HOUSE October 25, 1995 amount of money and would actually had to wear on our side many hats this There was no objection. cost lives appreciate the fact that session. She had to juggle her respon- The SPEAKER pro tempore. Pursu- there is language in this bill now that sibilities of this subcommittee as well ant to clause 7 of rule XV, the yeas and would prohibit those small boat station as to the Subcommittee on the District nays are ordered. closures. of Columbia. She has done an exem- The vote was taken by electronic de- It was not something that was going plary job, and then Ms. Coburn also vice, and there were—yeas 393, nays 29, to save money. So I think that it is from my office staff who has worked not voting 10, as follows: consistent with the effort on the part with the committee on all of these is- [Roll No. 735] of the committee to try to reduce ex- sues. YEAS—393 penditures, but allowing those stations Mr. DELAY. Mr. Speaker, I rise in strong to close would not have accomplished support of the Transportation appropriations Allard Dickey Houghton Archer Dicks Hoyer that fact. So I want to congratulate, conference report. It is a responsible billÐone Armey Dingell Hunter thank again the gentleman from Texas that I believe all Members can support. Bachus Dixon Hutchinson as well as the chairman of the sub- I want to thank my chairman, Mr. WOLF, for Baesler Doggett Hyde committee for their efforts in the con- Baker (CA) Dooley Inglis having the patience over the last few weeks Baker (LA) Doolittle Istook ference and urge support for the con- waiting to get this bill through conference and Baldacci Dornan Jackson-Lee ference bill. onto the floor. On his first trip through the Ballenger Doyle Jacobs Mr. WOLF. Mr. Speaker, I reserve the process as chairman, he has done a masterful Barcia Dreier Jefferson Barr Duncan Johnson (CT) balance of my time. job of crafting this legislation that is before us Barrett (NE) Dunn Johnson (SD) Mr. COLEMAN. Mr. Speaker, I yield today and I commend him on his efforts. Barrett (WI) Durbin Johnson, E. B. myself such time as I may consume. It is important to note that there are many Bartlett Edwards Johnson, Sam Again, in closing, if I might, Mr. good things in the bill which keep us on mes- Barton Ehlers Johnston Bass Ehrlich Jones Speaker, I have only one other speaker sage. This bill, while providing for a strong na- Bateman Emerson Kanjorski who may or may not be able to be here tional infrastructure, also includes many policy Bentsen Engel Kasich because of a conflict in meetings. So in statements that will benefit our Nation imme- Bereuter English Kelly any event, if I could, the gentleman Berman Ensign Kennedy (MA) diately and in the future. A good example Bevill Eshoo Kennedy (RI) from Alabama [Mr. CALLAHAN], my must be the fact that there are no highway Bilbray Evans Kennelly friend, earlier referred to the fact that demonstration projects in this bill. What that Bilirakis Everett Kildee the chairman stood strong against any means is there are no unforeseen priorities Bishop Ewing Kim Bliley Farr King particular highway demo projects. that the States have to take into consideration. Blute Fattah Kingston One of our colleagues in the con- What this means is that there is more money Boehlert Fawell Kleczka ference from another State, however, for States to accomplish their priorities in a Boehner Fazio Klink did correctly point out that he was Bonilla Fields (TX) Klug timely manner. Having no highway demonstra- Bonior Flake Knollenberg from a State that was not as populous tion projects in the bill gives the legislation in- Bono Flanagan Kolbe as Virginia or Texas or California and tegrity, and it gives the States confidence in Boucher Foley LaFalce that indeed sometimes it is necessary the way we conduct business. This is what the Brewster Forbes LaHood to provide the highway funding instead Browder Ford Lantos American people and the State governments Brown (CA) Fowler Largent of doing airport improvement projects expect and this is what they deserve. Brown (FL) Fox Latham or instead of doing bus or transit new In my home State of Texas, a donor State, Brown (OH) Frank (MA) LaTourette starts. Therefore, he felt it was per- Brownback Franks (CT) Laughlin highway spending will increase by $31 million Bryant (TN) Franks (NJ) Lazio fectly legitimate that we indeed as over last year's level. Hopefully, this increase Bryant (TX) Frelinghuysen Leach members of our respective committees will assist the State in their construction of Bunn Frisa Levin in the House and the Senate be able to some important projects including several U.S. Bunning Frost Lewis (CA) provide funding for highways. Burr Furse Lewis (GA) Highway 59 projects through my district. The Burton Gallegly Lewis (KY) As the gentleman from Alabama [Mr. conference agreement also approves contin- Buyer Ganske Lightfoot CALLAHAN] knows, as the gentleman ued funding for Houston metro's regional bus Callahan Gejdenson Lincoln from Virginia [Mr. WOLF] knows, we Calvert Gekas Linder plan. Houston Metro is noted for having the Camp Gephardt Lipinski have not stopped anybody over on the lowest cost-per-new-rider index in the Nation. Canady Geren Livingston authorizing committee from also au- The continued funding for this program will as- Cardin Gibbons LoBiondo thorizing and providing contract au- sist in the efficient movement of people, Castle Gilchrest Lofgren thority for specific highway dem- Chabot Gillmor Longley goods, and services through the Houston Chambliss Gilman Lowey onstration projects. That has happened area. Chenoweth Gonzalez Lucas in the past under ISTEA. We are told it With regards to airports, the conference Christensen Goodlatte Luther may happen in the future. I think we Chrysler Goodling Maloney elected to fund airport improvement programs Clay Gordon Manton have got a ways to go. I think this is a at last year's level. In the face of both compet- Clayton Goss Manzullo good beginning. ing funding demands and ironclad budget con- Clement Graham Markey I know that the chairman recalled straints, I am pleased that were at least able Clinger Green Martini that in an actual vote on the House Coble Greenwood Mascara to halt the downward funding spiral that air- Coburn Gunderson Matsui side, all of the Democrats on our side ports have experienced over the last 3 years. Coleman Gutierrez McCarthy of the aisle did not oppose him. Indeed, However, in light of future air travel demands, Collins (GA) Gutknecht McCollum to a person, we supported his effort to I feel that it is important that Congress be Collins (MI) Hall (OH) McCrery not—we think this is a good begin- Combest Hall (TX) McDade ready with a plan that allows for the proper fi- Condit Hamilton McDermott ning—to not designate highway demo nancing of our airport infrastructure in the fu- Conyers Hancock McHale projects. Many of us think that per- ture. Cooley Hansen McHugh haps we can move forward next year Costello Harman McInnis Mr. Speaker, this is a good bill, a bill all Cox Hastert McIntosh and do the same thing, when it comes Members can support. I urge all Members to Coyne Hastings (FL) McKeon to transit. Maybe we should do exactly support this responsible measure before us Cramer Hastings (WA) McKinney the same thing when it comes to buses today. Crane Hayes McNulty and other kinds of projects of that na- Crapo Hayworth Meehan b 1330 Cremeans Hefley Meek ture. Cubin Hefner Metcalf We think it is a good beginning, Mr. Mr. COLEMAN. Mr. Speaker, I yield Cunningham Heineman Meyers Speaker. So, therefore, I want to fi- back the balance of my time. Davis Herger Mfume de la Garza Hilleary Mica nally only thank specifically two Mem- Mr. WOLF. Mr. Speaker, I, too, yield Deal Hinchey Miller (CA) bers without whom I could not have op- back the balance of my time. DeFazio Hobson Miller (FL) erated my first term as ranking mem- The SPEAKER pro tempore (Mr. DeLauro Hoekstra Minge ber of a Subcommittee on Appropria- BARRETT of Nebraska). Without objec- DeLay Hoke Mink Dellums Holden Moakley tions, Ms. Cheryl Smith and Christy tion, the previous question is ordered Deutsch Horn Molinari Coburn for their hard work. Cheryl has on the conference report. Diaz-Balart Hostettler Mollohan October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10773 Montgomery Richardson Stump The Clerk read as follows: tleman claims it does. Neither the Moorhead Riggs Stupak Moran Rivers Talent Mr. DEUTSCH moves that the managers on House nor the Senate version of the Morella Roberts Tanner the part of the House at the conference on line-item veto contained any retro- Murtha Roemer Tate the disagreeing votes on the two Houses on active provisions dealing with targeted Myers Rogers Tauzin the House amendments to the bill S. 4 be in- tax benefits. Myrick Rohrabacher Taylor (MS) structed, within the scope of the conference, The House version did contain retro- Nadler Ros-Lehtinen Taylor (NC) to insist upon the inclusion of provisions to Neal Rose Tejeda require that the bill apply to the targeted active language regarding the applica- Nethercutt Roth Thomas tax benefit provisions of any revenue or rec- bility to appropriation measures for Neumann Roukema Thompson fiscal year 1995, but that authority was Ney Royce Thornberry onciliation bill enacted into law during or Norwood Sabo Thornton after fiscal year 1995. not extended to revenue measures. The Nussle Salmon Thurman The SPEAKER pro tempore (Mr. gentleman’s motion calls upon con- Oberstar Sanford Tiahrt ferees to apply the targeted tax provi- Obey Sawyer Torkildsen BARRETT of Nebraska). Pursuant to Olver Saxton Torricelli rule XXVIII, the gentleman from Flor- sions to any revenue or any reconcili- Ortiz Scarborough Towns ida [Mr. DEUTSCH] will be recognized ation measure enacted into law during Orton Schiff Upton for 30 minutes, and the gentleman from fiscal year 1995. At the same time, the Owens Schroeder Velazquez motion urges the conferees to stay Oxley Schumer Vento Pennsylvania [Mr. CLINGER] will be rec- Packard Scott Visclosky ognized for 30 minutes. within the scope of the conference. Pallone Seastrand Vucanovich The Chair recognizes the gentleman These instructions are inconsistent. We Parker Serrano Waldholtz EUTSCH cannot have it both ways. Pastor Shadegg Walker from Florida [Mr. D ]. Paxon Shaw Walsh Mr. DEUTSCH. Mr. Speaker, I yield If the gentleman had not included Payne (VA) Shays Wamp myself 1 minute and 10 seconds. the phrase ‘‘within the scope of the Pelosi Shuster Ward Mr. Speaker, on February 6 of this conference,’’ he would have been delib- Peterson (FL) Skaggs Watts (OK) year, this House passed by a 294 vote a erately instructing the conferees to go Petri Skeen Waxman Pickett Smith (MI) Weldon (FL) line-item veto bill. The Senate subse- beyond the scope of the conference, Pombo Smith (NJ) Weller quently passed the vote as well. It took which the gentlemen well knows would Porter Smith (TX) White 7 months. We went through the winter, be a violation of the rules of the House, Portman Smith (WA) Whitfield Poshard Solomon Wicker the spring, the summer, and then we and subject to a point or order. Pryce Souder Wise came into the fall, just about the fall Because he did include this phrase, Quillen Spence Wolf again, and September 20, conferees we can only conclude that this entire Quinn Spratt Woolsey were appointed. motion is purely politically driven, a Radanovich Stark Wyden Rahall Stearns Wynn I think there is a question, really, of poor attempt to try and embarrass Ramstad Stenholm Young (AK) the sincerity of conferees and appoint- those Members who happen to support Rangel Stockman Young (FL) ing conferees when it has taken this both the line-item veto and the land- Reed Stokes Zeliff Regula Studds Zimmer long. This is an idea which not only has mark balanced budget we will be ap- the support or the voting support of proving here on this floor tomorrow. NAYS—29 the majority of the Members of this Because the gentleman’s motion is Ackerman Hilliard Schaefer House, but I really think a clear major- inherently contradictory, I urge that Andrews Kaptur Sensenbrenner ity of the American people as well; 38 we accept the motion and can honestly Becerra Martinez Slaughter Beilenson Menendez Torres States have line-item vetoes. If we are state that we will follow the instruc- Borski Payne (NJ) Traficant talking about fiscal restraint, this is tions. We will make the line-item veto, Clyburn Peterson (MN) Waters the way to go. as it applies to targeted tax benefits, as Collins (IL) Pomeroy Watt (NC) What this proposal does, Mr. Speak- retroactive as possible within ‘‘his Danner Roybal-Allard Williams Filner Rush er, what this motion to instruct says is amendment,’’ the scope of the con- Yates Foglietta Sanders if we are going to have a line-item ference, which, according to the gentle- NOT VOTING—10 veto, let us get the job done. Let us man’s motion, is not retroactive at all. apply it to 1995 appropriations bills and Abercrombie Sisisky Weldon (PA) b 1400 Chapman Skelton Wilson budget bills. Fields (LA) Tucker Mr. CLINGER. Mr. Speaker, I yield Mr. DEUTSCH. Mr. Speaker, I yield Funderburk Volkmer such time as he may consume to the myself such time as I may consume. b 1353 gentleman from New York [Mr. SOLO- Mr. Speaker, they are important MON], chairman of the Committee on groups and I seek their support. The Ms. KAPTUR, Mrs. COLLINS of Illi- Rules. organization that you mention is not nois, Ms. ROYBAL-ALLARD, Mr. BOR- Mr. SOLOMON. Mr. Speaker, I will be one of them. SKI, and Mr. FOGLIETTA changed brief. We are in the midst of a pro- Let me also mention that I would their vote from ‘‘yea’’ to ‘‘nay.’’ longed hearing on the reconciliation like to offer a wager to the gentleman Ms. EDDIE BERNICE JOHNSON of bill up in the Committee on Rules. We from New York [Mr. SOLOMON], of Flor- Texas and Mr. CLAY changed their have listened to five witnesses over 31⁄2 ida oranges versus New York apples, as vote from ‘‘nay’’ to ‘‘yea.’’ hours. We have 65 more to go. Hope- the whether this is ultimately adopted So the conference report was agreed fully, we will be able to bring the Mem- into law. In front of the world I offer to. bers a bill tomorrow. the gentleman that wager. If the gen- The result of the vote was announced Let me just say to the gentleman tleman is willing to accept it, I would as above recorded. from Florida [Mr. DEUTSCH], if he will be happy for him to accept it. A motion to reconsider was laid on pay attention over there, without all Mr. SOLOMON. Mr. Speaker, I would the table. the discussion, he mentioned or ques- be glad to take the gentleman’s bet. f tioned the sincerity of the conferees. Mr. DEUTSCH. Mr. Speaker, I yield 3 Mr. Speaker, I am not going to ques- minutes to the gentlewoman from Illi- MOTION TO INSTRUCT CONFEREES tion his sincerity. I do not think we nois [Mrs. COLLINS], the ranking mem- ON S. 4, THE SEPARATE ENROLL- should do that. He is a friend of mine, ber of the Committee on Government MENT AND LINE ITEM VETO ACT and he is a good Member of this body. Reform and Oversight. OF 1995 But, I just have to point out, it is (Mrs. COLLINS of Illinois asked and Mr. DEUTSCH. Mr. Speaker, I offer a strange that his name appears on the was given permission to revise and ex- motion to instruct conferees on the National Taxpayers Union list of big tend her remarks.) Senate bill (S. 4) to grant the power to spenders, and yet, he is up here talking Mrs. COLLINS of Illinois. Mr. Speak- the President to reduce budget author- about the sincerity of the conferees on er, I support the motion to instruct of- ity. the line-item veto. That bothers me a fered by the gentleman from Florida The SPEAKER pro tempore. The little bit. [Mr. DEUTSCH]. Clerk will report the motion to in- First, let me just say this. The The line-item veto was always in- struct. amendment does not do what the gen- tended to apply both to appropriations H 10774 CONGRESSIONAL RECORD — HOUSE October 25, 1995 and to targeted tax benefits. House to certain individuals or special inter- I guess my concern and the reason I conferees have already been instructed ests, and therefore, we agree with the am rising today in support of my col- to make the line-item veto applicable underlying premise of the motion, but league from Florida is that the line- to current and future fiscal year appro- no retroactivity language is in either item veto has a great deal of bipartisan priations. The motion offered by Mr. the House or Senate versions dealing support; and it seems amazing, here we DEUTSCH reemphasizes that current with tax benefits. Because it is outside are at the end of the tenth month of and future targeted tax breaks should the scope of the conference, it will be this year and we have not seen it come also be covered. subject to a point of order in both the back to us out of conference commit- Some have suggested that after re- House and the Senate. tee. In fact, again, as my ranking mem- ceiving publicity for passing the line- I think the gentleman from Florida ber on the committee mentioned, this item veto, Republican proponents of and others realize that we still have a is the second instruction that we have this legislation wanted to deny Presi- fight on our hands to get a strong line- had. dent Clinton use of the line-item veto item veto in the hands of the Presi- We need to see that as part of the against appropriations bill and against dent. We still have a fight to put to- Contract With America and one of the special interest tax breaks. gether the right number of votes to put items I supported to my colleague from Floor debate earlier this year sug- this over the top. I believe we are mov- Massachusetts, because I think it is a gested that the majority wanted to ing, and the conference committee is good program, it is something that not move ahead in a bipartisan way and moving, toward agreement with the just future Presidents, but this Presi- also to encourage cooperation between Senate, and we are getting close to pro- dent should do. the legislative and executive branches. ducing a report that will once and for Mr. Speaker, I remember several Speaker GINGRICH said at that time: all give the President of the United months ago that this bill was part of For those who think that this city has to States a strong line-item veto, as I the Republican’s Contract With Amer- always break down into partisanship, you think most of us support. ica. In fact, the majority took great have a Republican majority giving to a Mr. Speaker, I must say, as it regards pains to pose on former President Rea- Democratic President this year without any the sincerity question, as a member of gan’s birthday and provided, as my col- gimmick an increased power over spending, the conference committee, I certainly which we think is an important step for league Mr. OBEY tells us, holy pictures have observed that Members of the mi- and likes to say and show their devo- America, and therefore it is an important nority party who are appointed to this step on a bipartisan basis to do it for the tion to the Contract With America. President of the United States without re- conference from both the House and Well, I am sorry that President gard to party or ideology. the Senate have prefaced their remarks Reagan has not been able to enjoy the Mr. Speaker, I do not personally sup- consistently with the statement: I am actual gift that they were going to give unalterably opposed to a line-item port the line-item veto, but if it is the to him. The problem is, evidently, that veto. I am against a line-item veto. I answer to the country’s spending prob- maybe they like the idea of line-item do not want to give the President a lems that its proponents say it is, then veto, but maybe not for President Clin- line-item veto. ton. this President should have it now. So perhaps, if the conferees from the Once Congress cedes the line-item Again, I have had the honor of having minority on this conference committee veto to a President, it is unlikely ever items vetoed by both Republican and could join with us to do the right thing to get it back. In the future, there will Democrat Governors in Texas and what and give the President the line-item always be Presidents to whom the Con- is good for the goose is good for the veto, we could move this process for- gander. I would hope that before we gress may not want to give line-item ward. veto power, but they will not have that Mr. DEUTSCH. Mr. Speaker, I yield stay here too long that we will see that choice. myself 10 seconds. Mr. Speaker, I would come out of the conference committee, If the majority truly believes that point out to my colleague from Massa- a real line-item veto that the President the head of the executive branch de- can deal with. chusetts [Mr. BLUTE] that the majority serves this power, then there is no ex- controls the conference committee and Again, I regret my colleague from cuse to deny him such power now. To there are Members of your party and New York, Mr. SOLOMON, our chairman deny it is to admit that the bill is my party that voted against this. The of the Committee on Rules, talking merely an exercise in political games- Republican party, the day it wants, can about my colleague being listed by manship, to be discarded once it has pass out of conference without a doubt. some lobby group as a big spender. served its purpose. Mr. Speaker, I yield 3 minutes to the That group that he mentioned, I no- Mr. Speaker, this is the second in- gentleman from Texas [Mr. GENE ticed a lot of folks from both parties struction that has been brought to the GREEN]. are on their list. Sometimes I wonder if floor on the line-item veto. I offered (Mr. GENE GREEN of Texas asked people are more interested in perpet- the first dealing with applicability of and was given permission to revise and uating their groups than they are actu- the line-item veto to appropriations, extend his remarks.) ally looking at the Federal budget. and my motion passed by voice vote. Mr. GENE GREEN of Texas. Mr. Mr. Speaker, with that, I would hope Mr. DEUTSCH’s motion also deserves bi- Speaker, I want to thank my colleague that my Republican colleagues, to par- partisan support. His is especially from Florida for, one, bringing this mo- aphrase St. Augustine, will remember timely as we prepare to consider the tion to instruct to the floor and also saying, Lord, I am really for the line- omnibus budget reconciliation bill, for yielding myself 3 minutes. item veto, but just not yet. which contains numerous provisions Mr. Speaker, when the debate came Mr. CLINGER. Mr. Speaker, I yield 3 deserving the President’s veto. up not only in our committee, and I minutes to the distinguished gen- Mr. Speaker, I urge a vote for the serve on the Committee on Govern- tleman from Florida [Mr. GOSS]. gentleman’s motion. ment Reform and Oversight, I sup- Mr. GOSS. Mr. Speaker, I thank the Mr. CLINGER. Mr. Speaker, I yield 2 ported the line-item veto both in the distinguished gentleman from Penn- minutes to the gentleman from Massa- committee and also on the floor. I sylvania [Mr. CLINGER] for yielding me chusetts [Mr. BLUTE], a very valued served 20 years in the legislature where this time. member of the Committee on Govern- we lived under the line-item veto, and Mr. Speaker, I think that some issues ment Reform and Oversight. I always joked I had the distinction of are coming out here that are rather Mr. BLUTE. Mr. Speaker, I thank the having line-item veto by both Repub- clear. Chairman for recognizing me and for licans and Democrats when I was in the First of all, I think everybody under- his leadership on this important issue legislature, so it was bipartisan. stands that bringing this subject up at for our country. We on the House side During my campaigns for a couple of this point is a fine time to again focus agree, I think with what the gentleman years people said, ‘‘Well, we need the a little interest on the line-item veto from Florida [Mr. DEUTSCH] is trying to line-item veto to control Federal for those of us who want it and have do and trying to accomplish. Mr. spending.’’ It is not the panacea to con- been working very hard to get it. In Speaker, 294 Members of the House trol Federal spending. It is just a small fact, we have been trying to get it out agreed to limit the use of tax benefits weapon in the arsenal to do it. of conference as rapidly as we can. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10775 I am delighted to have the oppor- being pointed out that there are Demo- now. Let us pass this measure and let tunity to get up and say publicly to the crats opposed to this issue. There are us have this measure apply to appro- world we are working on this, and we also Republicans opposed to this issue, priation bills right now. Then we can are working on it as rapidly and as but they have been in the majority not all walk away with clean hands. That faithfully as we can, as we promised we that long. Maybe they have not gotten is what the American people want. would, to the body. it yet, that they, in fact, are in the ma- Mr. GOSS. Mr. Speaker, will the gen- But it has not been quite as easy as jority now; and they do not need any of tleman yield? some might imagine. The other body, our votes. Mr. BARRETT of Wisconsin. I yield in fact, has some very significant dif- Mr. Speaker, I yield 3 minutes to the to the gentleman from Florida. ferences of opinion. We have had an gentleman from Wisconsin [Mr. Mr. GOSS. Mr. Speaker, would the open conference meeting so far. We BARRETT]. gentleman be willing to use his articu- have met. It turns out that the gap Mr. BARRETT of Wisconsin. Mr. late argument on some members of his that we predicted was there is, in fact, Speaker, I also support the line-item own party in the other body? Because there. veto, and I applaud the gentleman from in the other body, the gentleman well The other body has some things Florida [Mr. DEUTSCH] for moving this understands, we only have 53 of us over called special enrollment procedures, issue forward. there and there is something called fil- some sunset ideas, some things that The American people want the line- ibuster and cloture problems. are very different than what we wanted item veto, and they want the line-item Mr. BARRETT of Wisconsin. I would and are working out to get a tough, ef- veto because they are concerned about be more than happy to. fective line-item veto that works for two things: They are concerned, on the Mr. GOSS. We need members of the the great majority here who supported one hand, about pork barrel spending. gentleman’s party to help us. that. They want to see an end to pork barrel Mr. BARRETT of Wisconsin. I would So I can report back and I am happy spending. On the other hand, they also be more than happy to. As I have indi- to take advantage of this time and this want to see an end to special interest cated here and as the gentleman from motion to say that progress is being tax breaks that are tucked away into Florida [Mr. DEUTSCH] has indicated, made and faithful pursuit of the com- revenue bills. I think that the gen- certainly you in the majority have the mitment is, in fact, under way. tleman from Florida [Mr. DEUTSCH] power in this body to move forward. Now, without sounding partisan, be- does a good job in pointing these two The problem in appointing conferees cause I do not think we need any more things out. came from this body. That is where the strident, red-not rhetoric and partisan- The American people also want us to delay was. It was only September 20 ship out here on this issue right now, I act now. They do not want us to go that the Speaker in this body ap- would point out that it strikes me that forth with business as usual and say, pointed those conferees. So there was a the main opposition we are getting is Well, let us just have one more round, lot of foot-dragging, but the foot-drag- from the gentleman who makes the one more for the road, one more round ging was on this side of the aisle. motion, his own party in the other of special interest tax breaks and pork Mr. GOSS. Mr. Speaker, will the gen- body, from some of the more revered barrel spending in this year’s revenues tleman yield further? and senior Members, I would say. bills. What they want us to do is they Mr. BARRETT of Wisconsin. I yield Again, I do not want to speak out of want us to act to have it apply to the to the gentleman from Florida. school about what is going on in con- revenue bills and the appropriation Mr. GOSS. I would admit that it did ference committee. bills that are moving through Congress not go as rapidly as I wanted, but in 9 I would also point out that the prob- right now. months we got further than your party lem with the motion to instruct con- They do not want the Republicans, got in 40 years and I think that is a fair ferees that we have before us today is who I understand where they are com- comment. self-canceling. ing from. They have been out of power Mr. BARRETT of Wisconsin. I think The gentleman, my friend from Flor- a long time. They have a lot of Christ- the test is going to be when this bill ida [Mr. DEUTSCH], well knows that we mas tree presents that they want to reaches the President’s desk. If you have to stay within the scope of the hang, and they want to hang them on drag your feet until mid September of conference. The problem is that we these bills. But that is not what the next year, then you have succeeded in have to stick within the scope, and we election last fall was all about. The your goal. That is, depriving President therefore cannot reach back into deci- election last fall was ending that type Clinton of the ability to get rid of your sions about tax provisions that occur of practice. So I think that the Repub- pork-barrel spending and your special before the line-item veto becomes law. licans would be best served if they interest tax loopholes. That is not within scope. would just acknowledge what every- Mr. GOSS. If the gentleman will So what the motion to instruct in- body in here knows, and that is that yield further, with your help, that will volves is something that is impossible the American people want this practice not happen. to do within the Rules of the House. to stop and they want this practice to Mr. CLINGER. Mr. Speaker, I yield 2 Consequently, what we have is a some- stop right now. minutes to the distinguished gen- what meaningless motion in front of Now, the charges that go back and tleman from California [Mr. us, a meaningless resolution in front of forth on the floor today from the Re- CUNNINGHAM]. us. publicans is that they are saying that Mr. CUNNINGHAM. Mr. Speaker, as However, I am willing to take that the Democrats really are not concerned our freshman class came in, we fought meaninglessness in terms of the sub- about this, that they are opposed to it. for the line-item veto. The second class stance and try and turn it into a self- Well, as Mr. DEUTSCH pointed out, to follow that fought for the line-item purpose by saying, I am glad we have there are many of us who support this. veto, the 73 Members, and most of the opportunity to report back to the them voted for it. b gentleman and those who care that, in- 1415 What I have found in the couple of deed, progress is going forward, and I We frankly are somewhat dubious of hundred days that we have been here is believe we should accept this motion in the motives of the Republicans because if we take a look at the delaying tac- the interests of bipartisan cooperation we think what they are going to do is tics, the gridlock tactics of the busi- to reinforce that position of the House they are going to keep confereeing and ness at hand. team in conference that will, in fact, confereeing and confereeing until we Let us get through the balanced accomplish the line-item veto accord- get to the middle of next year and then budget, let us get through the Medi- ing to what we wanted to be in the pass a measure so President Clinton care, let us get through the tax back to House at the very earliest opportunity. does not have the opportunity to get the people, let us get back to welfare Mr. DEUTSCH. Mr. Speaker, I yield rid of their pork. reform. Let us take care of the busi- myself 20 seconds. The best way for us to come together ness at hand. Mr. Speaker, I am hearing sort of a is for the Republicans and the Demo- We have got everything to go before repetition of debate. I keep hearing crats to say, well, let us do it right Christmas. Yes, I have bought my H 10776 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Christmas tree here because I think we Even in this supposedly reformed budget deficit, to provide some new are going to be here at Christmas. Congress, we have seen more than a lit- tools to get a handle on this Nation’s When we get through with that busi- tle pork work its way into the budget. financing, and to change business as ness, we will bring up the line-item I have voted to cut billions of dollars, usual in this House. veto. But until you quit your delaying many others have as well, and many So I, along with other Members on tactics on all the legislation from your others were unsuccessful in removing the Democratic side of the aisle, spoke liberal leadership, then we will never pieces of the budget. in favor of the Republican initiative on get it done. The question of whether or not peo- the line-item veto. We have it in Texas. Looking at every single bill that we ple are being sincere in their activities Democrats and Republican Governors have here, they want to continue since they are now in conference begs alike have used the line-item veto and spending. There is always a good rea- the issue of why it took so long to send have used it effectively. I was particu- son for it. they want to continue more people to conference. I am left to ques- larly impressed with the last speaker spending. tion whether or not we are dealing on the night of February 6 on this Your heart is not in what you are with real values here, real principles, issue, the Speaker of the House, NEWT saying. Some of the Members are and or, rather, situational political postur- GINGRICH. This was not a speech like so they fought for line-item veto and I ap- ing that says, a line-item veto is good many, one of these gloating speeches preciate that. But the overall leader- for a Republican President but not about we won and you are dumb. No; ship of the Democratic Party does not very good for a Democratic President. have their heart in it and they will not I put aside my partisan differences to this was a serious speech in favor of follow through and the continuing vote for this veto because I believed it the line-item veto in which Speaker gridlock will not allow us to bring it was the right thing to do. I would ask GINGRICH allowed as how he as a Re- up. the conferees to do exactly the same in publican in an act of bipartisanship Help us do that and we will be more order to pass this proposal into law. wanted to be sure that President Clin- than happy to bring it. Our constituents sent us here to do a ton, a Democrat, had the line-item Mr. DEUTSCH. Mr. Speaker, I yield job, not to fight, not to whine, not to veto power in order to get at pork bar- myself such time as I may consume. rel in this budget. I am going to point out two things. rely on our party affiliation, but to do One to my good friend and colleague a job, and they want this veto. Move it What happened after all the speeches from Florida, there is a reconciliation now. were said and done? Well, the Senate bill that we are going to take up actu- Mr. CLINGER. Mr. Speaker, I yield 1 on a bipartisan basis proceeded to act, ally in a very short period of time that additional minute to the gentleman and they passed the measure. By March is this high, or higher. It includes un- from Florida [Mr. GOSS]. or April, they had appointed conferees told numbers of pieces of legislation. Mr. GOSS. Mr. Speaker, I just felt to consider the line-item veto. And The gentleman is on the Committee on that it is important that we under- what happened at this rostrum? Noth- Rules. He probably does not even know stand that we in this body, in the ing. Nothing happened. Nothing hap- how many different bills. House, are much blessed by orderly pened in March, nothing happened in My colleague still has time. There is rules and a wonderful Committee on April, nothing happened in May, noth- another bill you can put in reconcili- Rules that makes sure that things are ing happened in June, nothing hap- ation, which is the line-item veto bill. properly brought forward. pened in July, nothing happened in Au- That in fact deals with your issue of I believe the suggestion of my col- gust, and nothing happened through the Senate filibuster, because as the league and good friend, the gentleman most of the month of September be- gentleman is well aware, in the Senate from Florida [Mr. DEUTSCH], that we cause despite the fine speech that was the reconciliation bill needs only 50 throw this thing into some kind of an given here, the Speaker did not want to votes, or 51 votes. Actually 50 votes be- omnibus reconciliation bill because we give President Clinton the power to use cause that is something that the Presi- have already passed it on the floor the line-item veto to cut through this dent has supported. I assume the Vice would make sense from the House side. pork that has been put in these appro- President will follow the President’s Indeed it might. But we have a problem priations bills. That is not my opinion leads on that issue. on the other side. Again, maybe the alone. Various Republican Members of You have put everything else in the gentleman and some of his colleagues the U.S. Senate have voiced the same reconciliation bill. Here is your oppor- on that side of the aisle can help us concern about the delay that has tran- tunity to do the right thing. with somebody over there who has a spired month after month, that it was I have to respond to my colleague’s special rule in the other body, where all talk and no action. We saw the very last statement on the floor. Gridlock. they have a different approach than we same thing happen here this morning. My God, when this Chamber has want- do, might be able to prevail on them. There is a lobby reform bill that the ed to do something, the rules of this Because it still takes the necessary Senate on a bipartisan basis, Repub- House allow you to do things pretty number of votes to overcome objec- licans and Democrats coming together, darn fast when you want to do them tions and the procedures in the other passed 98 to 0. body. fast, without debate, without any dis- What happens to it over here? It is This is not where the problem is cussion. You get it done. We have 1 day still sitting there this afternoon. It has here. I know the gentleman from Flor- hearing, less than a day of hearing on been sitting there for 3 months. The ida is not suggesting anything as dia- Medicare, 27 days on Whitewater, 84 Speaker will not even refer this lobby bolical as that we have got one group days on Ruby Ridge. You guys control reform bill to a committee to study it. in his party here revving this thing up the time. That is not revolutionary, despite all There is an incredible limit in terms and another group in his party stop- the proclamations that have been made of what we can do. You can do it today. ping it over there. That would be un- here about these great revolutionaries Here is your opportunity. thinkable. Mr. Speaker, I yield 2 minutes to the Mr. DEUTSCH. Mr. Speaker, I yield 3 reforming the way the budget is han- dled, reforming the way this House gentlewoman from Michigan [Ms. RIV- minutes to the gentleman from Texas acts, but it is a little revolting that we ERS]. [Mr. DOGGETT]. Ms. RIVERS. Mr. Speaker, I rise in Mr. DOGGETT. I thank the gen- cannot get bipartisanship to resolve support of this motion. I voted for the tleman for yielding me the time. these problems. line-item veto. I campaigned on it as Mr. Speaker, perhaps I was a little I salute the gentleman from Florida well as I talked to people across the naive when I came here on the evening for coming here and keeping his word. 13th District in Michigan. I believe the of February 6 to speak in favor of this These people may break their word line-item veto is an effective tool in line-item veto initiative. You see, I la- about what they say they are willing to controlling spending in this House and bored as a new Member under the do on line-item veto but at least you more importantly in reining in the cro- misimpression that there might be a are providing us another opportunity nyism which tends to permeate the way for some genuine bipartisan par- to really come to grips with this prob- whole appropriations process. ticipation to do something about the lem. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10777 Mr. CLINGER. Mr. Speaker, I yield have the ability to watch this, this de- this year’s appropriation bills, because an additional 2 minutes to the gen- bate going on. I think it will be very helpful to a lot tleman from Massachusetts [Mr. How disingenuous can someone be to of the other debate going on concern- BLUTE], one of the champions of the take 7 months to appoint conferees? ing the reconciliation bill and how we line-item veto and a member of the This is not rocket science. This is not are going to get a balanced budget by conference committee. building the Taj Mahal. This is not the year 2002, which I totally agree Mr. BLUTE. Mr. Speaker, I thank the building the space shuttle. This is nam- with. So I have been listening very, chairman for yielding me the time. ing five people. Just like writing the very carefully to all of the debate that Mr. Speaker, I think those colleagues names. Again, and this is out of a high- is going on and about a train wreck on the other side of the aisle for the technology office, they probably have and how we can avoid it. most part are very serious about this computers there and they can probably I think it is extremely important for issue, as we are, have a sense of ur- even pull the computers out so it is all of us now, both sides of the aisle, gency with the state of fiscal affairs in probably seven key strokes. people like me that have had reserva- our country and think that the line- tions about doing a line item veto, like b 1430 item veto would work in our system of some of my colleagues on both sides of government here at the Federal level To take each month, if they did one the aisle have been wanting to do; I like it does in 43 some odd States in- keystroke, it is totally disingenuous. have been putting a lot of time and ef- cluding my State of Massachusetts, the The smiles and smirks on the other fort into the thought processes, and I State of Texas and many, many other side on this issue really are disturbing. think now is the time for us to test States of the union. But I am hearing Mr. Speaker, I yield 3 minutes to the this theory and do it the right way. some very serious selective memory gentleman from Texas [Mr. STENHOLM]. Let us instruct the conferees in the loss problems here on the other side. (Mr. STENHOLM asked and was House and send the message to the Because as someone who is relatively given permission to revise and extend other body. Now is the time for us to new to this Chamber, I recall watching his remarks.) do this because it will be very con- the debates years and years ago in Mr. STENHOLM. Mr. Speaker, I want structive to avoiding a train wreck and which President Reagan as early as to do a little revising and extending of to getting us to make the tough deci- 1981 asked for the line-item veto, and some of my own remarks here for just sions that are going to be required in the then majority denied him that line- a moment. I was one of those that op- getting to a balanced budget in the item veto each and every year of his posed the line item veto for many year 2002. tenure. Then President Bush was elect- years because I believe giving any So I encourage my fellow colleagues ed and he asked for the line-item veto, President one-third plus one minority on both sides of the aisle, let us look at and the then majority denied him the override was too much power, and I ar- this issue as it is being portrayed today line-item veto each and every year. gued that point. I argued it again this and support this motion. Then President Clinton was elected, year, but a little bit differently. Mr. DEUTSCH. Mr. Speaker, I yield and he asked for a strong line-item I came to believe several years ago 11⁄2 minutes to the gentlewoman from veto, in the first 2 years of his tenure, that line item veto was a good thing Illinois [Mrs. COLLINS]. and the then majority denied him, and a very positive thing. But I still Mrs. COLLINS of Illinois. Mr. Speak- their own President, a strong line-item did not want to give a President one- er, the reason why I wanted this time veto. third plus one. I wanted to give major- is because I wanted to point out we The new majority has been in office ity rule. In other words, if any Presi- have heard repeatedly during this de- now for about 10 months. In addition to dent were to go in and veto CHARLIE bate on the other side the conferees are coming forward with the reform of our STENHOLM’s favorite line item, that is, doing this and they are doing that. welfare system, reform of Medicare, somebody else’s definition of pork, he What I want to ask is when were these Medicaid, and a reconciliation package could do so. It would be my charge to meetings held. I am a conferee also. I that I think will bring us toward a bal- get 50 percent plus one of my col- have been to one meeting at which we anced budget, we have also gone to leagues to agree with me. If the Presi- gave these great speeches and nothing conference committee on the line-item dent got 50 percent to agree with him, more. veto in 10 short months. it would go. I argued that this year, So my question is: When have we had Let us be serious with the American and we lost. all of these conferences? If so, the people. In any comparison of who is Those who believe true line-item Democrats have been left out. I would moving forward quickly on this agenda veto, one-third plus one won on the ask that of the committee chairman, item, I think the new majority here floor of the House. the gentleman from Pennsylvania [Mr. has to get great credit for moving I have been looking at this and lis- CLINGER], when have we had conference quickly. It is not easy. There are Mem- tening to this debate. Tomorrow you meetings? bers on both sides of the aisle who are will get a chance to vote again for line Mr. CLINGER. If the gentlewoman opposed to the line-item veto on prin- item veto, H.R. 2. I will vote for it be- will yield, as the gentlewoman well cipled grounds but they have strong cause I believe now those who have knows, in preparing a conference re- reasons for opposing it. convinced me that giving a President port, obviously there are staff discus- Mr. DEUTSCH. Mr. Speaker, I yield one-third plus one is something that is sions that lead up to member meetings. myself such time as I may consume on very, very important. So I have The staff discussions have been going two points. changed my mind to the degree that I on at a very vigorous rate, very expe- One is there is no Member of this now believe it is time to do that, who- dited rate. We anticipate we will have Chamber, no political party in this ever the President is. a members’ meetings soon because country that has a monopoly on wis- But I find it very interesting in lis- many of the issues in dispute are being dom. I credit my Republican colleagues tening to some of the debate today say- resolved. I think we are going to be for moving some issues that I sup- ing we cannot do it because of the Sen- able to move to that. ported and I supported in the last Con- ate. The Byrd rule is 60 votes. At any Mrs. COLLINS of Illinois. Reclaiming gress. In fact, this House passed out a time two-thirds of the House or the my time, my staff tells me they have line-item veto in this Congress. The Senate wish to give a President line not been invited to any meetings in House did. The Senate did not in the item veto, it may be done. I think it is conference. I would just like to say to last Congress. time to turn up the ratchet. I think it the chairman that I would very much Again, this truly is a bipartisan is time to turn up the heat bipartisanly appreciate it if the minority staff are issue. This is what is the right thing, 38 and say to both bodies, to the con- invited to these conference staff meet- States have it, and the thing I think ferees, let us agree on what we are ings on this particular issue. that the American people want. But going to give this President and the Mr. DEUTSCH. Mr. Speaker, how also let me talk about disingenuous, next President and let us do it now. much time is left on each side? and I think the American people to Let us make it applicable to this year’s The SPEAKER pro tempore (Mr. some extent are watching this, they reconciliation bill, this year’s tax bill, WALKER). The gentleman from Florida H 10778 CONGRESSIONAL RECORD — HOUSE October 25, 1995

[Mr. DEUTSCH] has 71⁄2 minutes remain- So it is an exercise, obviously, to do and the best politically but also ing, and the gentleman from Penn- give the other side an opportunity to from a policy perspective is to stop sylvania [Mr. CLINGER] has 18 minutes talk about these things. But the im- playing the games and pass this bill. remaining. pact of it is meaningless. I am not As has been pointed out before, there The gentleman from Florida [Mr. going to oppose it, because it has no are 38 States in this country that pro- DEUTSCH] is entitled to close the de- impact. vide a line-item veto for their Gov- bate. Mr. Speaker, I yield back the balance ernors, and it has also been pointed Mr. DEUTSCH. Mr. Speaker, I yield 1 of my time. out, I served 10 years in the State legis- minute to the gentleman from Texas Mr. DEUTSCH. Mr. Speaker, I yield lature in Florida. [Mr. DOGGETT]. myself such time as I may consume. I served under Republican Governors Mr. DOGGETT. Mr. Speaker, I think Mr. Speaker, ladies and gentlemen, and served under Democratic Gov- it is important to realize this line-item this body is the greatest deliberative ernors as well. I tell you the system veto is only half of the line-item veto body in the world. I mean, I have a worked. It worked in Florida. I have that we were offered in the Contract thrill every time I come into this talked to Members from other States. With America. The portion about giv- Chamber, and really thank God that I It has worked there. Not only does it ing line-item power to remove tax have the opportunity to serve the peo- give the Governor an opportunity to loopholes, that went out the door any- ple of my district and the people of this veto turkeys, outrageous things like way, and now the question is whether country. these outrageous things like this that we get the other half on spending, and I think what the people of this coun- we are going to be voting on that are I would just yield the rest of my time try want from us is nothing more than flat-out wrong. What it does, it pre- to anyone on the Republican side that taking the high road. That is what vents them from happening. People do can explain why it took the Speaker they want from us. You know, there is not want to be embarrassed by high- from the spring to September 20 to ap- an old expression that all of us know: If lighting those issues that might be in point conferees. If there is any expla- it walks like a duck and sounds like a there. nation other than to thwart President duck and quacks like a duck and smells You know, it is a very simple debate, Clinton’s use of it, I would love to hear like a duck and feels like a duck, you as well. The bill needs to apply to this it. Clearly, the only reason was to know, there is probably a pretty darn year. If there is going to be line-item thwart President Clinton’s use of the good chance it is a duck. veto, apply it this year. There is no ra- line-item veto to get at pork barrel. You know, if it sounds like you de- tional policy reason why it should not If there is any other reason why the laying, if it sounds like you are delay- apply to this year, and, you know, we Senate appointed conferees in March ing, if it talks like you are delaying, if both talk about how we want to get and April, the House had to wait to it smells like you are delaying, if it away from the partisan politics, and name those five conferees all that hears like you are delaying, if it feels that is not why people sent us here. I time, this would be a good time to ex- like you are delaying, then you are de- plain it. mean, I represent everyone in my dis- Mr. CLINGER. Mr. Speaker, will the laying. trict whether they are registered as a You can protest as much as you gentleman yield? Democrat, as a Republican, or Inde- Mr. DOGGETT. I yield to the gen- want. But, you know, I just do not be- pendent or any other party. Americans tleman from Pennsylvania. lieve it stands up to the light of day. are Americans. They are not Ameri- Mr. CLINGER. I would just throw the Let me talk about something that cans by party definition. What is good question back. We would like to know has been reported in the press today. for this country does not just fall on on this side of the aisle, while your This is a USA Today article talking individuals in political parties. It is party was in control of the Congress, about some of the tax breaks that are good for this country, and it continues why we did not get any opportunity to in the reconciliation bill as it is com- to make this country the greatest deal with line-item veto. ing before us, things like college foot- country in the world and the greatest Mr. DOGGETT. I think that does an- ball coaches, college football coaches. country in the history of the world. swer the question. There is no reason You can read it in today’s USA Today: I really urge my colleagues who have that they could offer other than to College football, not basketball coach- the ability on the other side of the thwart President Clinton. es or volleyball coaches, but college aisle to use their majority as it should Mr. CLINGER. Mr. Speaker, I yield football coaches get a special tax break be used, to do the right thing, not to myself such time as I may consume, because they have friends in powerful talk on the floor and say one thing but just to say we have had an interesting places. Convenience store owners, be- take 7 months to appoint conferees, to debate, an interesting discussion. cause of a large company in a particu- smirk when we are talking about issues The other side has had an oppor- lar Member’s district, get a special tax in terms of resolving this issue, which tunity to beat their breast and make break, and that is someone from Okla- just has not been done. some political points about why we homa who is able to get that into the Mr. Speaker, I yield such time as he have taken so long to get to con- bill. I mean, this is business as usual. may consume to the gentleman from ference. I think we have to really focus This would make Dan Rostenkowski Utah [Mr. ORTON]. on what is at issue here, and that is the proud. Mr. ORTON. Mr. Speaker, I thank gist of what the gentleman proposes in Let me just say that, you know, that the gentleman for yielding. his motion to instruct. I am not going is what is going on, and that is what I would stand to urge my colleagues to oppose it, because it really has no should not be going on. If my col- to support this motion to instruct con- meaning. It really does not have any leagues on the other side want to be ferees. impact. the majority party into the next cen- I have been laboring for many years While both the House and Senate tury, then shame, shame, shame, here to bring to pass a line-item veto. bills apply a line-item veto to targeted shame. They should not be doing this. In concept, there are many ways to ac- tax benefits, presented after the date of The same thing in terms of appro- complish it, whether through enhanced the line-item veto’s enactment, neither priations. Here is a list that my staff rescission, through the line-item veto S. 4 or H.R. 2 apply the line-item veto prepared for me of really turkeys, I provisions we recommended earlier in retroactive to any tax provisions, and, mean outrageous, turkeys, that, you the year. How it is accomplished is not therefore, tax benefits enacted prior to know, it seems as if what is going on to as important as accomplishing it. signing H.R. 2 are not within the scope pass this reconciliation bill is a bidding I believe that there are some con- of either bill and remain fully outside war. You know, Members come and cerns about the constitutionality of the scope of the conference. they say, ‘‘This is what I need and buy some of these issues, but it is proper to Therefore, by the very terms of the me off and give it to me.’’ Well, that is instruct conferees at this point. gentleman’s motion to stay within the business as usual. That is not what the Let me just add a word of caution. If scope of the conference, that is an im- American people want. all we do is instruct conferees and the possibility, given the nature of the in- Again, I say to my colleagues on the conferees never really meet and we struction. other side, the smartest thing they can never really have a conference report, October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10779 we still have not accomplished any- Calvert Gunderson Mfume Taylor (NC) Visclosky Whitfield Camp Gutierrez Mica Tejeda Vucanovich Wicker thing. We have been working now for Canady Gutknecht Miller (CA) Thomas Waldholtz Wilson many months to try to push forward Cardin Hall (OH) Miller (FL) Thornberry Walker Wise the line-item veto concept. I asked on Castle Hall (TX) Minge Thornton Walsh Wolf five different appropriation bills to in- Chabot Hamilton Moakley Thurman Wamp Woolsey Chambliss Hancock Molinari Tiahrt Ward Wyden clude line-item veto. Rules would not Christensen Hansen Montgomery Torkildsen Watts (OK) Wynn make it in order. Chrysler Harman Moorhead Torricelli Waxman Young (AK) Clayton Hastert Moran Upton Weldon (FL) Young (FL) b 1445 Clement Hastings (WA) Morella Velazquez Weller Zeliff Vento White Zimmer We have attempted to have it in- Clinger Hayes Murtha Clyburn Hayworth Myrick NAYS—44 cluded and, in fact, there is one certain Coble Hefley Nadler way that all of my colleagues could en- Coburn Hefner Neal Abercrombie Klink Roukema sure that line-item veto would apply Coleman Heineman Nethercutt Becerra Lewis (CA) Roybal-Allard Collins (GA) Herger Neumann Beilenson Martinez Sanders this year, and that is pass the coalition Collins (IL) Hilleary Ney Chenoweth McDade Serrano budget alternative tomorrow, the budg- Collins (MI) Hilliard Norwood Clay McKinney Shuster et reconciliation alternative, because Combest Hinchey Nussle Conyers Meek Stokes Dellums Mink we have this very provision in the coa- Condit Hobson Oberstar Thompson Cooley Hoekstra Obey Dixon Mollohan Torres Engel Myers lition budget reconciliation alter- Costello Hoke Olver Towns Evans Ortiz native. It would apply line-item veto to Cox Holden Orton Traficant Gonzalez Owens the 1996 spending cycle. Coyne Horn Oxley Waters Cramer Hostettler Packard Greenwood Pastor Mr. CLINGER. Mr. Speaker, will the Hastings (FL) Payne (NJ) Watt (NC) Crane Houghton Pallone Williams gentleman yield? Crapo Hoyer Parker Jefferson Rahall Yates Mr. ORTON. I yield to the gentleman Cremeans Hunter Paxon Johnston Rangel from Pennsylvania. Cubin Hutchinson Payne (VA) NOT VOTING—7 Cunningham Hyde Pelosi Mr. CLINGER. Mr. Speaker, the gen- Danner Inglis Peterson (FL) Bereuter Sisisky Weldon (PA) tleman surely is aware that the provi- Davis Istook Peterson (MN) Chapman Tucker Fields (LA) Volkmer sion included in his bill tomorrow de la Garza Jackson-Lee Petri Deal Jacobs Pickett b would be subject to some provisions in DeFazio Johnson (CT) Pombo 1506 the Senate that probably would see it DeLauro Johnson (SD) Pomeroy Messrs. LEWIS of California, HAST- stricken? DeLay Johnson, E. B. Porter INGS of Florida, MYERS of Indiana, Mr. ORTON. Mr. Speaker, the Senate Deutsch Johnson, Sam Portman Diaz-Balart Jones Poshard TOWNS, KLINK, and CONYERS could in fact try to strike it. Does that Dickey Kanjorski Pryce changed their vote from ‘‘yea’’ to mean that because the other body may Dicks Kaptur Quillen ‘‘nay.’’ try to strike it that we do not act? I Dingell Kasich Quinn Doggett Kelly Radanovich Messrs. KENNEDY of Massachusetts, think we have to continue to act, to Dooley Kennedy (MA) Ramstad ZIMMER, BASS, MCDERMOTT, push forth what the people who elected Doolittle Kennedy (RI) Reed LEWIS of Georgia, STARK, and us and sent us here to do want us to do. Dornan Kennelly Regula COYNE changed their vote from ‘‘nay’’ The SPEAKER pro tempore (Mr. Doyle Kildee Richardson Dreier Kim Riggs to ‘‘yea.’’ WALKER). All time has expired. Duncan King Rivers So the motion to instruct was agreed Without objection, the previous ques- Dunn Kingston Roberts to. tion is ordered on the motion to in- Durbin Kleczka Roemer The result of the vote was announced Edwards Klug Rogers struct. Ehlers Knollenberg Rohrabacher as above recorded. There was no objection Ehrlich Kolbe Ros-Lehtinen A motion to reconsider was laid on The SPEAKER pro tempore. The Emerson LaFalce Rose the table. English LaHood Roth question is on the motion to instruct Ensign Lantos Royce f offered by the gentleman from Florida Eshoo Largent Rush [Mr. DEUTSCH]. Everett Latham Sabo PRIVILEGES OF THE HOUSE—DI- The question was taken; and the Ewing LaTourette Salmon RECTING SPEAKER TO PROVIDE Farr Laughlin Sanford REMEDY IN RESPONSE TO USE Speaker pro tempore announced that Fattah Lazio Sawyer the ayes appeared to have it. Fawell Leach Saxton OF FORGED DOCUMENT AT A Mr. DEUTSCH. Mr. Speaker, I object Fazio Levin Scarborough SUBCOMMITTEE HEARING Fields (TX) Lewis (GA) Schaefer to the vote on the ground that a Filner Lewis (KY) Schiff Ms. SLAUGHTER. Mr. Speaker, I quorum is not present and make the Flake Lightfoot Schroeder offer a privileged resolution (H. Res. point of order that a quorum is not Flanagan Lincoln Schumer 244) to direct the Speaker to provide an present. Foglietta Linder Scott appropriate remedy in response to the Foley Lipinski Seastrand The SPEAKER pro tempore. Evi- Forbes Livingston Sensenbrenner use of a forged document at a sub- dently a quorum is not present. Ford LoBiondo Shadegg committee hearing, and ask for its im- The Sergeant at Arms will notify ab- Fowler Lofgren Shaw mediate consideration. Fox Longley Shays sent Members. Frank (MA) Lowey Skaggs The Clerk read the resolution, as fol- The vote was taken by electronic de- Franks (CT) Lucas Skeen lows: vice, and there were—yeas 381, nays 44, Franks (NJ) Luther Skelton H. RES. 244 Frelinghuysen Maloney Slaughter not voting 7, as follows: Frisa Manton Smith (MI) Whereas, on September 28, 1995, the Sub- [Roll No. 736] Frost Manzullo Smith (NJ) committee on National Economic Growth, Funderburk Markey Smith (TX) Natural Resources and Regulatory Affairs of YEAS—381 Furse Martini Smith (WA) the Committee on Government Reform and Ackerman Barton Borski Gallegly Mascara Solomon Oversight held a hearing on political advo- Allard Bass Boucher Ganske Matsui Souder cacy of Federal grantees; Andrews Bateman Brewster Gejdenson McCarthy Spence Whereas, the president of the Alliance for Archer Bentsen Browder Gekas McCollum Spratt Armey Berman Brown (CA) Gephardt McCrery Stark Justice, a national association of public in- Bachus Bevill Brown (FL) Geren McDermott Stearns terest and civil rights organizations testified Baesler Bilbray Brown (OH) Gibbons McHale Stenholm at that hearing; Baker (CA) Bilirakis Brownback Gilchrest McHugh Stockman Whereas, a document was placed upon the Baker (LA) Bishop Bryant (TN) Gillmor McInnis Studds press table for distribution at the hearing Baldacci Bliley Bryant (TX) Gilman McIntosh Stump which contained the letterhead, including Ballenger Blute Bunn Goodlatte McKeon Stupak the name, address, phone number, fax num- Barcia Boehlert Bunning Goodling McNulty Talent Barr Boehner Burr Gordon Meehan Tanner ber, and E-mail address of the Alliance for Barrett (NE) Bonilla Burton Goss Menendez Tate Justice, and the names of certain member Barrett (WI) Bonior Buyer Graham Metcalf Tauzin organizations and the dollar amounts of Fed- Bartlett Bono Callahan Green Meyers Taylor (MS) eral grants they received; H 10780 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Whereas, in her opening statement at the We have an obligation to history, scholars, must affirm this House's belief that all docu- hearing, the president of the Alliance for authors, and the courts to ensure that all who ments which are produced by us are authen- Justice identified the document as being serve here are cognizant of this responsibility tic, accurate, and dependable. forged and contained errors and requested an explanation from the chairman of the sub- and are determined to carry it out. Senator We are here to represent the people of the committee as to the source of the document; TRENT LOTT, when he served in the House, United States. And, particularly those of us on Whereas, in response, the chairman ac- made an eloquent statement of the importance the Government Reform and Oversight Com- knowledged that the document was created of the sanctity of our records: mittee, we are here to provide oversightÐto by the subcommittee staff; For if the legislative history made by the protect the people of this Nation from wrong- Whereas, House Information Resources, at duly elected Representatives of the people is doing by the GovernmentÐthe kind of wrong- the request of the subcommittee staff, pre- subject to malicious alteration and distor- doing we have witnessed by this incident. pared the forged document; tion by anonymous, nonelected staffers, then Whereas, the document was prepared using the credibility of this institution, the peo- This resolution is designed to reaffirm, to official funds; ple’s branch is in serious jeopardy. the American people, our commitment to hon- Whereas, the chairman of the subcommit- All our written records become suddenly esty and to history. It is to protect the integrity tee acknowledged in a letter, dated Septem- suspect in the eyes of the people, the press, of the legislative history. It is to safeguard our ber 28, 1995, to the president of the Alliance and the courts. legislative proceedings and to guarantee that for Justice that ‘‘the graphics, unfortu- How much weight, for instance, are the nately, appeared to simulate the Alliance’s what we do is trustworthy and honorable. courts likely to give to the legislative his- Again, we must guarantee that we put to- letterhead’’; tory we supposedly made as Representatives Whereas, the September 29, 1995, issue of when the actual source of that history is in gether a fair and accurate record. the National Journal’s CongressDaily re- doubt? And yet that is the situation in which Mr. Speaker, in the name of the men and ported that Representative McIntosh’s com- we find ourselves until the guilty are found women who have served this Congress in the munications director said that ‘‘the letter- and punished and adequate steps are taken past, and in the name of those who will come head was taken from a faxed document, to prevent the recurrence of such abuse scanned into their computer system and al- after us, we must be unwavering in our stand- [CONGRESSONAL RECORD, June 30, 1983]. tered’’; and ards. Forgery will not be tolerated. Whereas, questions continue to arise re- We must guarantee that we are putting to- I urge adoption of this resolution. garding the responsibility for preparation of gether a fair and accurate record of our legis- MOTION TO LAY THE RESOLUTION ON THE TABLE the forced document: the chairman of the lative history. We cannot let our standards fall. OFFERED BY MR. ARMEY subcommittee stated during the hearing that In the past few weeks, I have participated in Mr. ARMEY. Mr. Speaker, I offer a he had no prior knowledge of the document’s a number of hearings regarding the McIntosh- preparation; the chairman later stated that motion. Istook-Ehrlich proposal to limit the political ad- The Clerk read as follows: the subcommittee staff prepared the docu- vocacy of organizations which receive Federal ment: and other published reports suggested Mr. ARMEY moves to lay the resolution on that Chairman McIntosh’s personal office grants. Now, regardless of your position on the table. this legislation, what occurred during the Sep- staff prepared the document: The SPEAKER pro tempore. The Whereas, on September 27, 1995, the Speak- tember 28 hearing cannot be ignored by any- question is on the motion offered by er expressed concern over the distribution of one who believes that Congress must obey the gentleman from Texas [Mr. ARMEY] unattributed documents and announced a and follow the laws of the land. It cannot go to lay on the table the resolution of- policy requiring that materials disseminated unchallenged by anyone who claims to honor- fered by the gentlewoman from New on the floor of the House must bear the name ably represent the United States in these hal- of the Member authorizing their distribu- York [Ms. SLAUGHTER]. lowed Halls of Congress. It cannot be accept- tion; The question was taken; and the ed by those of us who have vowed to uphold Whereas, Members and staff of the House Speaker pro tempore announced that have an obligation to ensure the proper use the laws of the United States. In short, the un- the ayes appeared to have it. of documents and other materials and exhib- authorized creation and falsification of docu- its prepared for use at committee and sub- ments, to be distributed to the general public, RECORDED VOTE committee hearings and which are made must not be tolerated. Ms. SLAUGHTER. Mr. Speaker, I de- available to Members, the public or the At a hearing of the Government Reform and mand a recorded vote. press, and to ensure that the source of such Oversight Subcommittee on Economic Growth, A recorded vote was ordered. documents or other materials is not mis- The vote was taken by electronic de- represented; Natural Resources, and Regulatory Affairs on Whereas, committees and subcommittees September 28, a document was placed on the vice, and there were—ayes 236, noes 189, should not create documents for use in their press table which appeared to be on the let- not voting 7, as follows: proceedings that may give the impression terhead of the Alliance for Justice. It included [Roll No. 737] that such documents were created by other a logo, an address, phone number, fax num- AYES—236 persons or organizations, as occurred at the ber, e-mail address, and a listing of member September 28, 1995, hearing of the Sub- Allard Chambliss Fields (TX) organizations, laid out in such a manner as to Archer Chenoweth Flanagan committee on National Economic Growth, replicate the alliance's own letterhead. Incor- Armey Christensen Foley Natural Resources and Regulatory Affairs; Bachus Chrysler Forbes Whereas, the dissemination of a forged rect information was placed on this document, Baker (CA) Clinger Fowler document distorts the public record and af- in such a way in which any reasonable person Baker (LA) Coble Fox fects the ability of the House of Representa- would believe it came from the Alliance for Ballenger Coburn Franks (CT) tives, its committees, and Members to per- Justice. Because there was no disclaimer, Barr Collins (GA) Franks (NJ) Barrett (NE) Combest Frelinghuysen form their legislative functions, and con- anyone could have picked up this piece of stitutes a violation of the integrity of com- Bartlett Condit Frisa paper, left the hearing, and remained under Barton Cooley Funderburk mittee proceedings which form a core of the the false impression that this document came Bass Cox Gallegly legislative process: Now, therefore, be it Bateman Crane Ganske Resolved, That the Speaker shall take such from the Alliance for Justice. Bereuter Crapo Gekas action as may be necessary to provide an ap- However, upon closer examination during Bilbray Cremeans Geren propriate remedy to ensure that the integ- the hearing, it became clear that this docu- Bilirakis Cubin Gilchrest rity of the legislative process is protected, ment was falsified. The logo was incorrect, the Bliley Cunningham Gillmor and shall report his actions and rec- names of some of the member groups were Blute Davis Gilman ommendations to the House. Boehlert Deal Goodlatte inaccurate, and the amount of the grants were Boehner DeLay Goss The SPEAKER pro tempore (Mr. in error. The chair of the subcommittee has Bonilla Diaz-Balart Graham WALKER). The resolution constitutes a admitted that his staff created this document, Bono Dickey Greenwood Brownback Doolittle Gunderson question of privileges of the House and, as stated by his communications director, Bryant (TN) Dornan Gutknecht under rule IX. they had taken a faxed document, had House Bunn Dreier Hall (TX) Ms. SLAUGHTER. Mr. Speaker, I am bring- Information Resources scan it into their com- Bunning Duncan Hancock ing to the floor of the House an issue of basic Burr Dunn Hansen puter system, and altered it. Burton Ehlers Hastert responsibility of the people who serve here ei- And, there appeared to be no understanding Buyer Ehrlich Hastings (WA) ther by election or appointment. This privi- by the people who created the document of Callahan Emerson Hayes leged resolution affirms the need for this the seriousness of their actions. Calvert English Hayworth House to ensure that all documents which We need to assure that this kind of decep- Camp Ensign Hefley Canady Everett Heineman come before us in an official capacity are ac- tion should not, and cannot, happen in the Castle Ewing Herger curate and authentic. House of Representatives. And, today we Chabot Fawell Hilleary October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10781 Hobson McIntosh Schiff Spratt Thornton Waters ity to yield to other Members, and that Hoekstra McKeon Seastrand Stark Thurman Watt (NC) the gentleman from Alabama [Mr. Hoke Metcalf Sensenbrenner Stenholm Torres Waxman Hostettler Meyers Shadegg Stokes Torricelli Williams BROWDER] be allowed to control the fol- Houghton Mica Shaw Studds Towns Wilson lowing 10 minutes and have the author- Hunter Miller (FL) Shays Stupak Traficant Wise ity to yield to other Members. Hutchinson Molinari Shuster Tanner Velazquez Woolsey Hyde Moorhead Skeen Taylor (MS) Vento Wyden The CHAIRMAN. Is there objection Inglis Morella Smith (MI) Tejeda Visclosky Wynn to the request of the gentleman from Istook Myers Smith (NJ) Thompson Ward Yates Minnesota? Jacobs Myrick Smith (TX) NOT VOTING—7 There was no objection. Johnson (CT) Nethercutt Smith (WA) Johnson, Sam Neumann Solomon Chapman Sisisky Weldon (PA) The CHAIRMAN. The Chair recog- Jones Ney Souder Fields (LA) Tucker nizes the gentleman from Ohio [Mr. Kasich Norwood Goodling Volkmer Spence KASICH]. Kelly Nussle Stearns b Kim Oxley Stockman 1530 Mr. KASICH. Mr. Chairman, I yield King Packard Stump So the motion to table was agreed to. myself 10 minutes to begin. Kingston Parker Talent Mr. Chairman, in a way, it almost Klug Paxon The result of the vote was announced Tate Knollenberg Peterson (MN) seems anticlimactic to be on the floor Tauzin as above recorded. Kolbe Petri Taylor (NC) A motion to reconsider was laid on today to talk about the most sweeping LaHood Pombo Thomas amount of change that we have seen in Largent Porter the table. Thornberry this country over the last 60 years. I Latham Portman f LaTourette Pryce Tiahrt want to kind of go back and set the Laughlin Quillen Torkildsen Upton PERSONAL EXPLANATION foundation for this. Frankly, we have Lazio Quinn to go back all the way before the last Leach Radanovich Vucanovich Mr. GOODLING. Mr. Speaker, I regret that Waldholtz election. The reason why it is impor- Lewis (CA) Ramstad I missed rollcall vote 737 on the motion to Lewis (KY) Regula Walker tant to go back there is it is all about Walsh table. Had I been present I would have voted Lightfoot Riggs promises made and promises kept. Linder Roberts Wamp ``yea.'' Watts (OK) My colleagues may recall that the Livingston Rogers f LoBiondo Rohrabacher Weldon (FL) Republican majority, at the time the Longley Ros-Lehtinen Weller Republican minority, has a program White GENERAL LEAVE Lucas Roth called a Contract With America. We Manzullo Roukema Whitfield Ms. SLAUGHTER. Mr. Speaker, I ask Martini Royce Wicker laid out a number of things that we McCollum Salmon Wolf unanimous consent that all Members wanted to do to reestablish contact McCrery Sanford Young (AK) may have 5 legislative days within with the American people, including McDade Saxton Young (FL) which to revise and extend their re- cutting the size of the Congress, the McHugh Scarborough Zeliff marks on the resolution just tabled. McInnis Schaefer Zimmer congressional staffs, applying the same The SPEAKER pro tempore (Mr. laws that we pass on the American peo- NOES—189 BARRETT of Nebraska). Is there objec- ple to apply to us known as the Shays Abercrombie Fazio McCarthy tion to the request of the gentlewoman Act, the line-item veto, and, of course, Ackerman Filner McDermott from New York? the balanced budget amendment and Andrews Flake McHale There was no objection. Baesler Foglietta McKinney family tax relief, designed to eliminate Baldacci Ford McNulty f or ease the burden on the tax increase Barcia Frank (MA) Meehan that the American people suffered in Barrett (WI) Frost Meek b 1530 Becerra Furse Menendez 1993. Beilenson Gejdenson Mfume THE 7-YEAR BALANCED BUDGET We said that we would be able to give Bentsen Gephardt Miller (CA) RECONCILIATION ACT OF 1995 Americans tax relief; we said we would Berman Gibbons Minge Bevill Gonzalez Mink The SPEAKER pro tempore (Mr. be able to balance the budget; we said Bishop Gordon Moakley LAHOOD). Pursuant to the order of the that we would be able to provide for a Bonior Green Mollohan House of Tuesday, October 24, 1995, and strengthened national security situa- Borski Gutierrez Montgomery tion, and we would get all of this ac- Boucher Hall (OH) Moran rule XXIII, the Chair declares the Brewster Hamilton Murtha House in the Committee of the Whole complished. Then the horror stories Browder Harman Nadler House on the State of the Union for started about what this would really Brown (CA) Hastings (FL) Neal mean for Americans. Brown (FL) Hefner Oberstar consideration of the bill, H.R. 2491. My colleagues may remember some Brown (OH) Hilliard Obey b Bryant (TX) Hinchey Olver 1532 of the famous memos that were put out Cardin Holden Ortiz IN THE COMMITTEE OF THE WHOLE that talked about the fact that Repub- Clay Horn Orton Clayton Hoyer Owens Accordingly the House resolved itself licans could not do it unless they Clement Jackson-Lee Pallone into the Committee of the Whole House robbed all of these programs. Clyburn Jefferson Pastor on the State of the Union for the con- Well, back last November we won an Coleman Johnson (SD) Payne (NJ) election, and a lot of it had to do with Collins (IL) Johnson, E. B. Payne (VA) sideration of the bill (H.R. 2491) to pro- Collins (MI) Johnston Pelosi vide for reconciliation pursuant to sec- our Contract With America. Then in Conyers Kanjorski Peterson (FL) tion 105 of the concurrent resolution on December it was said that there is sim- Costello Kaptur Pickett the budget for fiscal year 1996, with Mr. ply no way we can balance the budget Coyne Kennedy (MA) Pomeroy Cramer Kennedy (RI) Poshard BOEHNER in the chair. and give tax relief and provide for a Danner Kennelly Rahall The Clerk read the title of the bill. stronger national defense and make de la Garza Kildee Rangel The CHAIRMAN. Pursuant to the government smaller; it could not be DeFazio Kleczka Reed done. Well, last January or February, I DeLauro Klink Richardson order of the House of Tuesday, October Dellums LaFalce Rivers 24, 1995, the bill is considered as having came to the floor with a program to Deutsch Lantos Roemer been read the first time. pay for the tax cuts, with a program to Dicks Levin Rose The gentleman from Ohio [Mr. KA- pay for less of a tax burden on Ameri- Dingell Lewis (GA) Roybal-Allard Dixon Lincoln Rush SICH] will be recognized for 90 minutes, cans. Doggett Lipinski Sabo and the gentleman from Minnesota People said, ‘‘Well, you can do that, Dooley Lofgren Sanders [Mr. SABO] will be recognized for 90 John, but you cannot pass a budget res- Doyle Lowey Sawyer Durbin Luther Schroeder minutes. olution that will enact this entire pro- Edwards Maloney Schumer Mr. SABO. Mr. Chairman, I ask unan- gram.’’ I then came back later that Engel Manton Scott imous consent that the gentleman spring with the help and support of my Eshoo Markey Serrano from Florida [Mr. GIBBONS] be allowed colleagues in the Republican Party, Evans Martinez Skaggs Farr Mascara Skelton to control the first 30 minutes of de- and we then laid down a budget resolu- Fattah Matsui Slaughter bate on our side, and have the author- tion that balanced the budget in 7 H 10782 CONGRESSIONAL RECORD — HOUSE October 25, 1995 years, provided the tax relief we prom- Federal spending is going up by almost gentleman read this bill? Has the gen- ised, brought about a smaller, more fo- $3 trillion. tleman read this bill? Has the gen- cused, more efficient Federal Govern- Now, in Washington, they claim that tleman from Ohio read the bill? ment, and strengthened national de- only having a $3 trillion increase in Mr. KASICH. Yes. fense. spending rather than a $4 trillion in- Mr. GIBBONS. When? People said, ‘‘Oh, well, we know you crease in spending is a revolution. Mr. KASICH. Well, we wrote most of can do the budget resolution, that is Frankly, on Main Street in every small it. the easy part. What you will not be town, in every large city in America, a Mr. GIBBONS. Mr. Chairman, the able to do is reconciliation where the $3 trillion increase is not a revolution, gentleman has not read it. He has not rubber meets the road.’’ it is barely an evolution. read it. Nobody has read it. So, Mr. Chairman, I come here today The simple fact of the matter is that I can tell you one thing it does not with a reconciliation bill that in fact people who struggle every day in their contain. It does not contain a $500-per- keeps our word, provides tax relief to families or people who struggle every child tax cut, does it? Does this bill Americans, sharpens the focus of the day in their businesses do not view a $3 contain a $500-per-child tax cut? Yes or Federal Government, strengthens na- trillion as opposed to a $4 trillion in- no. The answer is no. tional defense, and keeps all of the crease something that would be impos- Mr. KASICH. Mr. Chairman, will the promises that we were making last fall. sible to do. Frankly, they wonder why gentleman yield? Is it not a great thing in America it goes up so much. Mr. GIBBONS. No; the gentleman has that a group of elected officials are Mr. Chairman, the bottom line is, we plenty of time. You have 5 hours. going to keep their promises? In fact, have a rational plan over time to slow Mr. KASICH. Well, then, how am I we are going to balance the budget the growth in Federal spending, to slow supposed to answer the question? over 7 years and save the next genera- the growth in Federal spending while Mr. GIBBONS. Does it contain a $500 tion. Mr. Chairman, just to explain a at the same time giving people some of tax cut? little bit about it, probably the great- their money back, so that they can Mr. KASICH. Mr. Chairman, will the est misnomer or the greatest misunder- spend it on things that they think are gentleman yield? standing about this proposal, if we lis- most important. Mr. GIBBONS. Mr. Chairman, I yield ten to the tenor of the debate, is that Do my colleagues know what the bot- to the gentleman from Ohio, very brief- Federal spending is going to go down in tom line here is today? The bottom ly. this budget. line here today is about the pendulum, Mr. KASICH. Mr. Chairman, of Well, let me just put a couple of it is about power, it is about money, course the gentleman knows that we things in perspective. JFK, John Ken- and it is about influence. For 30 years are going to have a $500 tax cut. Con- nedy, created the first $100 billion we have sent an awful lot of power and tained actually in that bill, it is not budget in this country, and that oc- an awful lot of money and a lot of in- there, but it is our full intent to do it, curred in 1962. We created our first $100 fluence to this city. and the gentleman understands the billion budget in 1962. From 1962 to What we are trying to do is, in a purely technical grounds under which 1995, the Federal budget grew from $100 commonsense way, bring the pendulum we do not have that in there right now. billion to $1.5 trillion in spending per back so that the American people can Mr. GIBBONS. Mr. Chairman, re- year. be entrusted, so that the American claiming my time, the first thing we If a person started a business when people can be empowered, so that the have established is that it does not Christ was on earth, if that person lost American people can get their money, contain any $500 tax cut, so anybody $1 million a day, 7 days a week, he or their power, and their influence back that gets up and says that does not she would have to lose $1 million a day, to fix problems and to show true com- know what is in the bill. 7 days a week for the next 700 years to passion in the communities in which Second, 33 percent of all of the chil- create $1 trillion. Our budget is $1.5 they live across this great country. Our dren in families under 18 years of age trillion and our national debt is ap- belief is, it does not work best here; it do not get any tax cut of any sort in proaching $5 trillion, and this Novem- works best when administered with the Kasich bill, or should I say in the ber we are going to have to lay down a common sense by people who live all Gingrich reconciliation bill. Thirty- debt service payment paying interest across this country in Main Street, three percent of all of the children in on our national debt approaching $25 USA. the United States get nothing out of billion. Mr. Chairman and Members, this is the Kasich-Gingrich bill. Another 10 Mr. Chairman, the gentleman from clearly a historic vote, a historic op- percent get a minimal amount of the Mississippi, SONNY MONTGOMERY, one of portunity. This is our chance to restore Kasich tax cut for children and fami- the great gentleman of this House, fiscal sanity and to guarantee eco- lies. came to me almost in a panic saying, nomic security for this country. If we The bill is a fraud. There are so many ‘‘John did you know, $25 billion in in- are up to this job by slowing the outrages in this bill that it is impos- terest payments?’’ growth in Federal spending, if we can sible to state them all, but there are I say to my colleagues, with the na- live within a $3 trillion increase rather some real principles that everybody tional debt approaching $5 trillion, the than a $4 trillion increase, do we know ought to understand. Most of the chil- American people, the mothers and fa- what? We have made the first down dren and families in tax cuts are in thers, the mothers and fathers in this payment on guaranteeing the prosper- upper income families. They get the country know one thing, that if the ity of the United States of America for tax cuts. The lower income families Federal Government is unable to con- another century. Mr. Chairman, let us that really need the money, that have trol its appetite, if we are unable to pass the reconciliation bill. really suffered in all of this revolution, slow the growth in Federal spending, it Mr. Chairman, I reserve the balance do not get a thing out of this bill, not is going to eat us alive. of my time. a cotton-pickin’ penny out of this bill. Now, over the last 7 years in Wash- (Mr. GIBBONS asked and was given b ington, and we will get some charts out permission to revise and extend his re- 1545 here later, we have spent cumulatively marks.) It is obvious that what is happening on Federal spending $9.5 trillion. Re- Mr. GIBBONS. Mr. Chairman, I yield in this huge reconciliation bill is that member what I said about how long it myself such time as I may consume. the budget balancing is coming on the took to make $1 trillion? We spent $9.5 Mr. Chairman, the gentleman from backs of poor people, of sick people, of trillion. Over the next 7 years, in an ef- Ohio [Mr. KASICH] always makes such a children, and of the working poor. The fort to balance the budget, give Ameri- nice speech. It is a pleasure to hear earned income credit, a bipartisan, par- cans tax relief, strengthen national de- him. I get to dreaming when the gen- tial solution to the problems of the fense, shrink the size and scope of gov- tleman speaks, but let us get back to working poor, is being decimated in ernment and make it more focused, we reality, let us get back to reality. this bill. That is just a part of the are going to go from $9.5 trillion in Mr. Chairman, I would ask the gen- problems that are contained in this spending to $12.2 trillion in spending. tleman from Ohio [Mr. KASICH], has the bill. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10783 Mr. Chairman, I have a limited It punishes a childÐby denying cash aidÐ cent of all the taxes. They do not get amount of time; and I want to be fair when a State drags its feet on paternity estab- anywhere near that amount of the tax with Members on my side about this lishmentÐtitle I. Number of children punished: relief. The top 10 percent pay 57.5 per- bill. 3.3 million. cent of the tax. They do not get any- Mr. Chairman, I yield 2 minutes to It leaves children holding the bag if the where near that amount of the tax re- the gentleman from Tennessee [Mr. State runs out of Federal moneyÐtitle I. Num- lief. FORD]. ber of children punished: ? I hope as we go through this debate (Mr. FORD asked and was given per- It does not assure safe child care for chil- we will have the opportunity to realize mission to revise and extend his re- dren when their parents workÐtitle I. Number that what we are talking about is a tax marks.) of children punished: 401,600. cut that is going to benefit families. It Mr. FORD. Mr. Chairman, I thank It allows children to die while in State care is saying we are not going to take that the gentleman for yielding me the without requiring any State accountability be- money out of your pocket, we are going time. yond reporting the deathÐtitle II. Number of to leave it in your pocket, and maybe Mr. Chairman, the reconciliation bill children punished: ? the American family can figure out will harm average people just to give It throws some medically disabled children how to spend the money better than we that huge tax cut to the wealthiest of off SSI because of bureaucratic technical- in Washington can. Maybe they can de- people in this country. I would just itiesÐtitle IV. Number of children punished: cide what is best for their education, like to point out, in several areas, 75,943. health care, clothing and feeding and some 15 million children in this coun- It denies SSI benefits to children who didn't housing their families. That is what try will be impacted with the welfare become disabled soon enoughÐtitle IV. Num- this tax cut is all about, benefiting the cuts that are being made to give that ber of children punished: 612,800. American family. tax cut to the rich and wealthy of this There is no guarantee of foster care for chil- Mr. GIBBONS. Mr. Chairman, I yield country. dren who are abused or neglectedÐtitle II. 1 When we look at children who are re- 2 ⁄2 minutes tot he gentleman from Number of children punished: ? ceiving public assistance or those who Michigan [Mr. LEVIN]. It cuts aid to poor children to pay for tax (Mr. LEVIN asked and was given per- are receiving some type of assistance cuts for the rich. Number of children punished: mission to revise and extend his re- under the welfare program, it punishes 15 million. a child by denying cash aid when a marks.) Mr. KASICH. Mr. Chairman, I yield 2 Mr. LEVIN. Mr. Chairman, I have State drags its feet on paternity estab- minutes to the distinguished gen- heard the gentleman from Ohio talk lishment. It leaves children holding the tleman from Arizona [Mr. KOLBE]. about keeping promises. Keeping prom- bag if the State runs out of Federal Mr. KOLBE. Mr. Chairman, I appre- ises is important. So is looking at the money in any given time. It does not ciate the gentleman yielding me the assure safe child care for children when content of those promises. If the con- time. tent is harmful, there is no great honor their parents work. It allows children As we go through this debate, I hope to die when in State care, and the only in keeping misguided promises. That is we will have an opportunity to talk what is true here today. thing the State is required to do is to about some of these issues and hope- make notification to the family upon Yesterday, this was said on the floor fully to respond to some of the things death. of the Senate: that were said here. I just want to re- It throws some medically disabled As much as I want to reduce the size of children off SSI because of the bureau- spond to two of them. government, I question spending cuts di- The gentleman from Florida spoke rected so disproportionately against the el- cratic technicalities. It denies SSI ben- derly, the young, and the infirm. efits to children who did not become about the fact that it does not have the disabled soon enough. It cuts aid to $500 tax cut. He knows full well what is That did not come from a Democratic poor children just to pay the tax cuts going on here, the fact that the Con- Senator. It came from a Republican to the rich in this country. There is no tract With America, how the tax cut Senator, ARLEN SPECTER. guarantee of foster care for children was passed, the fact that the Senate There is a great unease in this coun- who are abused or neglected under the resolution is somewhat different, there try about this Republican package. I welfare reform package. is a haircut or a shave in here to re- think it is the source of the low popu- Mr. Chairman, welfare reform that duce the amount. larity ratings of the Speaker. It is be- we are working on now with the con- The bottom line is, and we have been cause I think people in this country ferees in the Committee on Ways and hearing form the other side, that there feel this budget is not so much coura- Means, the House version of that bill is is a tax cut in here, that it is all going geous as it is callous, reducing by $23 cruel to children in this country. Just to the rich. We know thee is going to billion the earned income tax credit for to pay for the huge tax cut, the $245 be a tax cut in this bill. There is a tax working families, having a tax cut. billion, that we are going to say to 15 cut. And it is going to be a tax cut that Two-thirds of the tax cut go to those million children who live below the is going to benefit middle America. with incomes above $75,000. That is poverty threshold in this country, that That is the second thing I wanted to what the Treasury Department says. we are going to take from the children respond to the gentleman from Florida, But I want to go beyond those fig- of this nation to give to the rich and talking about this is all going to the ures, and I want to talk, for example, wealthy of this Nation. wealthy. about SSI for handicapped kids. These The bill harms average peopleÐto provide Look at this. This chart here dem- are kids with serious handicaps in fam- tax cut for the wealthiest. Reconciliation onstrates that the vast majority of ilies that are low, middle and low in- should focus on balancing the budgetÐnot tax that goes to those of the income levels come, earning $28,000 and less. Mr. cuts for privileged class. between $30,000 and $70,000. That is per Chairman, this budget eliminates the WELFARE family. That is not what, in my defini- cash payment for 700,000 families with The Republicans have chafed at sugges- tion, is the wealthiest Americans. seriously handicapped kids. tions that their welfare reform billÐH.R. 4Ðis Those at the very low end get less, We have to get the budget under con- cruel to children. The truth hurts. Here are just yes, because they pay less, consider- trol. We have to eliminate this deficit. ten examples of the cruel policies embedded ably less taxes. In fact, in terms of the But I plead, how we do it is also impor- in the Republican contract on America. tax burden, if you are to put this on tant. It punishes the childÐuntil the mother is 18 the basis of where the tax burden goes, This is a budget that is a callous years oldÐfor being born out-of-wedlock to a the vast majority of this tax relief, budget. It deserves to be rejected. I am young parentÐtitle I. Number of children pun- percentagewise, goes to those who are sure it will be vetoed by the President, ished: 70,000. paying the least amount of taxes. So it and then we will get down to a biparti- It punishes a childÐfor his entire child- is distributed over income groups by san negotiation as to how to turn hoodÐfor the sin of being born to a family on giving more of it to those at the lower around the budget deficit in America. welfare, even though the child didn't ask to be end of the scale. Mr. KASICH. Mr. Chairman, I yield 2 bornÐtitle I. Number of children punished: 2.2 In fact, the top 1 percent of income minutes to the distinguished gentle- million. earners in this country pays 27.5 per- woman from New York [Ms. MOLINARI]. H 10784 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Ms. MOLINARI. I am proud, Mr. The Democratic staff of the Joint fered by our own leadership, barely Chairman, to stand here with my col- Economic Committee looked into who passes the muster of your own caucus. leagues on one of the most historic is likely to get the tax cuts and who is I have got another little secret to days in the last 30 years. We have likely to suffer from the presumed cuts share with your today. Last November, today begun the process of shifting the the Republicans are proposing. The re- the Republicans took control of the very fabric of government from reck- sults are stunning. Congress by 13 seats. In that freshman less spending and huge deficits toward The poorest 20 percent of American class we have 14 former Democrats, responsible fiscal policy. families, those making $13,000 a year or myself included, who are sick of the The last time Congress exhibited fis- less, those whose income represent tax-and-spend attitude that has been cal responsibility Sam Rayburn was only 3.5 percent of the total income in pushed. Speaker. He told us something that this country, will bear one-half the The issue is, are we going to do it or some have forgotten. He said, ‘‘You’ll cuts in programs that help people di- not? Are we finally going to bite the never get mixed up if you simply tell rectly. The poorest 20 percent get half bullet and pass a plan that gets us on the truth.’’ the cuts of benefits, and they are going a track to a balanced budget or are we In November of 1994 and over the past to get no tax cut whatsoever. Instead, going to continue the game, the cha- 10 months, Republicans have been com- they will see their taxes go up because rades, and the lack of honesty about an pletely honest with the American peo- of the change in the earned income tax issue that is fundamental to the future ple. We have told them the truth. The credit. of this country, including the future of truth is, the Federal Government taxes Most middle-income American fami- my two children? too much. The truth is, the Govern- lies get a bad deal as well. Some will b 1600 ment spends too much. get a tax cut, but many will lose bene- The national debt is nearing $5 tril- fits worth much more. What is going to Mr. GIBBONS. Mr. Chairman, I yield lion, and if we continue on the course be left is they are going to be holding myself such time as I may consume. that the Democrats have proposed, the the bag when the Medicaid money is no Mr. Chairman, I love all of this ethe- number will reach over $8 trillion by longer available. They get a net cut, if real talk about the wonder-wonderland 2010. there is a tax cut, in their gross bene- that is being created by our Republican The truth is, the Republicans have fits of $500 a year. colleagues. the only certified plan to balance the But under the Republican plan for But when are we going to get down to budget. If you want to talk about car- deficit reduction, the richest 20 percent business? When are we going to talk ing about children, how much can you of American families come out way about what is in this monstrous bill care about children if you are not will- ahead. They are slated to get two- they have got here? Let me just ask ing to change a pattern of spending thirds of the tax cuts, and their tax the gentleman on the other side if they that will give to each baby born in 1995 breaks exceed their losses in program can explain any of the language on over $187,000 in taxes in their lifetime benefits. They get fewer program bene- pages 1296 and 1297? Just pick it up and just for the interest on the debt? fit cuts and more of the tax cuts. read it, and if you can explain it, take The truth is, the President sent not Mr. Chairman, the shared sacrifice in your time and try to do it. just one but two budgets to the Hill; reducing the deficit would look very But, you know, that is what this de- and he requested that Congress spend different if we had a Democratic plan. bate is about. It is not about dreams. It $200 billion more than it takes in every I urge Members to oppose the obscene is about reality. It is what is contained year. reconciliation package. in here, and this is a bill that is going The truth is, a balanced budget Mr. KASICH. Mr. Chairman, I yield 2 to be vetoed. It deserves to be vetoed. means a lot to Americans and our chil- minutes to the distinguished gen- Then perhaps we can talk some com- dren, not only because it is the right tleman from Maine [Mr. LONGLEY]. mon sense around here. thing to do but because it sets us on Mr. LONGLEY. Mr. Chairman, it is a Mr. Chairman, I yield 2 minutes to the road to prosperity. Federal Reserve pleasure to stand here in behalf of my the gentlewoman from Connecticut Chairman Alan Greenspan said that a own leadership and the gentleman from [Mrs. KENNELLY]. balanced budget will lower interest Ohio [Mr. KASICH], chairman of the Mrs. KENNELLY. Mr. Chairman, the rates by 2 percent. Committee on the Budget, to com- former speaker, I say, yes, we know On Election Day, we promised we pliment them for their yeoman work. you are going to do it, pass this bill. would present a plan to balance the I want to share a little bit of a per- But it is the way you do it that we budget; and now we are delivering on sonal vignette that relates to this en- have the problem with. that promise. Unlike the President, la- tire experience. My father served as I stand here in opposition to the part dies and gentlemen, we will have no re- Governor of Maine, but my father was of this bill, the earned income tax cred- grets a year from now. By telling the also a former Democrat. In 1974, he left it, which is under attack. This is the truth to the American people, we are the Democratic Party because he was one feature of the Tax Code generally making history, and we are keeping sick of the tax-and-spend philosophy designed to help working families. The our commitment. We will deliver hope and the attitude that there was no majority side’s runaway growth is jus- to a Nation that believed it never could limit to what this Government can do. tification for taking away $23 billion happen again. There is an irony also because in 1976 from the earned income tax credit. Mr. GIBBONS. Mr. Chairman, I yield he was the first national cochairman of This claim conveniently ignores the 2 minutes to the gentleman from Cali- the National Committee for a Balanced fact that this is the way the law was fornia [Mr. STARK]. Budget Amendment. The irony was written on purpose. (Mr. STARK asked and was given this: When his son was sworn in as a President Reagan supported the permission to revise and extend his re- Member of this Congress, his two earned income tax credit. President marks.) grandchildren, my son, Matthew, age Bush expanded it, and then President Mr. STARK. Mr. Chairman, the rec- 11, and my daughter, age 7, Sarah, were Clinton embraced it, and that is where onciliation bill before us today is an af- on the floor with me. It made me sick we are today: Working people get a tax front to American standards of fairness to think that after 20 years my two credit. and decency. Of course the American children were at a point where they are The majority goes on to great people want to see the deficit reduced, looking at paying hundreds of thou- lengths to point out that families with but they do not want to do it by gut- sands of dollars in taxes on interest too much income are receiving this ting Medicare, Medicaid, the earned in- alone on the Federal debt without a credit and uses this as the primary jus- come tax credit, child nutrition, stu- single reduction of principal. That is tification for phasing out the credit. dent loans, and a host of other valuable what this is all about. However, the majority well knows the Government programs; and they espe- We have a plan today. There is no very structure of the credit results in cially do not want to do it while giving plan on the Democratic side. In fact, families with incomes above the pov- huge tax cuts to those who do not need any plan that has been offered barely erty line receiving the credit. Destruc- it. gets past any plan that has been of- tion of the credit so a family would October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10785 lose the entire working credit for earn- to compassion with our ability to sus- I mean, it is almost absurd to argue ing 1 additional dollar above the base tain programs financially. this because it shows you how modest amount would destroy the work incen- It has gotten out of balance. Ladies we are being. We want it to go from tive. and gentlemen, this is the hour to bal- $9.5 trillion to $12.1 trillion; total Fed- Therefore, to phase out the credit ance the budget. eral spending will grow like this. faster, the majority raises the mar- Mr. GIBBONS. Mr. Chairman, I yield What do the big spenders want? They ginal rate on every family. This change 2 minutes to the gentleman from New want to grow at $13.3 trillion. If we is nothing less than $8.7 billion tax re- York [Mr. RANGEL]. keep doing this, the country is going lief on the 9.4 million families with Mr. RANGEL. Mr. Chairman, let me bankrupt. children, earning between $11,000 and congratulate my Republican friends for You want to talk about kids? They $28,000. making a promise and keeping it. Peo- will have no chance. You want to talk This is really beyond the beyond, and ple did not understand the contract. I about the rich? The rich will get richer I do not see how anybody can defend it. did. I have known you for along time. and the poor will get poorer. This is an egregious example of paying You said you were going to reduce The fact is our Federal spending goes for tax breaks by raising taxes on some the deficit. You said you were going to up. of America’s most hard-working fami- balance the budget. I knew darn well Let us talk about the rest of the pro- lies. what you meant. You meant you were gram. Medicare, we are going to go The tax credit was the first effort of going to give back some taxes, tax from $926 billion to $1.6 trillion. If we bipartisanship to keep working fami- cuts, because I understand what you grow at $1.8 trillion, guess what, Medi- lies working, and then it was the first were talking about. care goes bankrupt. We had that debate step in welfare reform, and now to at- If you give more money to the rich, last week, and our senior citizens are tack it and say it does not work, it they are smart enough to know what to going to be in wonderful shape if they works. You need the $23 billion, but it do with it. They are going to invest it. want to stay in the current program, should not be taken from the tax cred- Right? That is why most of it goes to and, frankly, they ought to look at the it. rich people. They invest it, create jobs, private plans where they are going to Mr. KASICH. Mr. Chairman, I yield 2 and sooner or later, 10 or 15 years, it get more. minutes to the gentleman from New trickles down, the poor get something. But under any circumstance, Medi- Jersey [Mr. FRANKS]. I understand what you are talking care grows from $926 billion to $1.6 tril- Mr. FRANKS of New Jersey. Mr. about. lion. Chairman, ladies and gentlemen, I You say you want to help people with Now Medicaid, to listen to the other think something is important to put health care. The best way to help old side, you would think we are going into perspective. If we choose to allow folks with health care is take away down. Medicaid is going from $443 bil- this Government to run on the course what they have got, so you take away lion, you hear those numbers out there it is currently taking, in 17 short years $270 billion, give them a voucher, and on main street, billion, to $773 billion. every single dollar that every individ- tell them, ‘‘You are sick. Go out and The big spenders want to go to $955 bil- ual taxpayer sends to this town, every find yourself a health maintenance pro- lion. Of course, the country will go tax dollar paid by every corporation in gram.’’ bankrupt. America will all be consumed by just The previous speaker said we would But it does not make for a good five programs: Social Security, Medi- not have money to fight crime. That is speech to talk about facts. care, Medicaid, Federal Employee Re- the cruelest thing of all, because you tirement Benefits, and the interest cut education, you cut job training, Welfare reform, in our welfare pro- payment on the national debt. In just you cut the little cushion we have in gram, we are going to go from $492 bil- 17 short years we will not be talking the earned income tax credit to keep lion to $838 billion. Some want it to about possible reductions in student fi- people working instead of having to go grow to $949 billion. nancial assistance that will allow a on welfare. And so what do we have in If we do this, you know what will child to help get to college. There will our cities that really cost us, not just happen. The country will go bankrupt. simply be no money available to help in losing deficit but in losing lives, is The bottom line is, folks, can we, in send children to college, because all of that instead of giving job opportuni- fact, grow from $9.5 trillion to $12.1 our tax revenues will be consumed by ties, you give us jails, instead of talk- trillion? Can we restrain ourselves those five mandatory entitlement ing about having schools and educators from that extra trillion dollars? If we spending programs. and going into partnership, you allow restrain ourselves, we will balance the If we need to help put police on the drugs to come and provide the hope. budget. We will give tax relief, and the streets in our neighborhoods that are Let me say this, yes, you balanced earned income tax credit is going to go high-crime areas, the Federal Govern- the budget. Yes, you give the tax cut. up 40 percent under our plan. I think ment will be unable to help any of But when you said you were reforming that is pretty good, a 40-percent in- those communities, because all of our these programs, believe me, the Amer- crease over the next 7 years, and no- available revenue will be consumed by ican people can read the fine print in body will get less money in 1996 than just those five programs. that contract. they got in 1995. If you are concerned about the qual- You may have fulfilled the goal as These are the facts. This is what will ity of our air and our water, there will you read it, but if you go to Catholic save the country. Pass this reconcili- not be any Environmental Protection Charities, if you go to the Jewish ation bill. Agency, because all of the money will Council Against Poverty, if you go to Mr. GIBBONS. Mr. Chairman, I yield have been consumed by just those five the Protestant Council, those people myself such time as I may consume. mandatory entitlement spending pro- who provide the health care and try to I always love the beautiful dreaming grams; no money for infrastructure, for help the poor among us, they will tell charts of the gentleman from Ohio [Mr. our roads, our bridges, our highways, you you breached that contract with KASICH]. He overlooks two factors. One, our mass transit systems. the American people and sooner or the country as a whole grows in total The bottom line is that the next gen- later when they come back you will number of people, as does the eligible eration will inherit an America with soon know that America would not tol- population, for the types of things he far fewer opportunities because the erate what you are doing to them was castigating. Government will have taken all of its today. They will pay you back tomor- Second, there is the impact of infla- available revenue, yet still be enable to row. tion that unfortunately is with us and meet some compelling needs of our Mr. KASICH. Mr. chairman, I yield has been with us for, well, for genera- citizens. myself 21⁄2 minutes. tions, really. So all of his figures are For 30 years, we have been deficit Mr. Chairman, again to the total just make-believe. spending. We have lost sight of our fun- Federal spending, it is going from $9.5 Mr. Chairman, I yield 2 minutes to damental responsibilities to make cer- trillion to $12.2 trillion. We want it to the gentleman from Maryland [Mr. tain that we measure our commitment go up. CARDIN]. H 10786 CONGRESSIONAL RECORD — HOUSE October 25, 1995 (Mr. CARDIN asked and was given It should come as no surprise to any- the earned income tax credit, and sec- permission to revise and extend his re- body that our plan of change, that rep- ond by the complete or partial ineli- marks.) resents the most significant change gibility they have for the nonrefund- Mr. CARDIN. Mr. Chairman, I rise in within the Federal Government in the able $500 tax cut. strong opposition to a budget reconcili- last 60 years, a truly historic vote that We also see in this bill a paltry $2 bil- ation package that violates every con- will occur on this floor tomorrow, has lion taken out of corporate welfare in cept of truth in labeling and truth in its enemies. That should come as no this country. The question is, why are advertising. If you believe this rec- surprise. the poor people hit 11 times harder onciliation bill is about balancing the We have the defenders of the status than the corporations of this country? budget and keeping promises, you be- quo, that have said we need to spend It is a bad bill. I urge Members to lieve Joe Camel was created to teach more and more and more, and continue vote against it. It means that we are children about dangers of smoking. to load the debt on to our children and going to balance the budget on the The problems with this bill begin our grandchildren, arguing against this backs of the poor, and that is wrong. I with the numerous horrendous provi- plan. In fact, I would submit to Mem- would say to the gentleman from Okla- sions that betray the middle class, bers that had our plan come from on homa [Mr. LARGENT], God would not working Americans who pull the high on tablets of stone, that these have done that. wagon. The attack on the middle class same people would be voicing their op- Mr. KASICH. Mr. Chairman, I yield 2 is broad and bold. This bill opens the position to these extreme measures minutes to the distinguished gen- door to those who would raid pension that the Republican plan puts forth in tleman from New York [Mr. LAZIO], a funds and put at risk the retirement the reconciliation bill. member of the Committee on the Budg- benefits of working Americans. At the Yes, change is difficult, but change is et. same time, it closes the door to higher absolutely necessary. We cannot con- Mr. LAZIO of New York. Mr. Chair- education for millions of Americans by tinue to add more and more debt on to man, do you know what the fastest restricting access to student loans. the heads of our children and grand- growing area of the Republican budget Elderly Americans also face a double- children. We cannot allow Medicare to is? It is Medicare. We are taking care barreled attack. Two hundred seventy go bankrupt. We cannot continue to of older Americans. The rhetoric on the billion dollars of Medicare cuts threat- overtax our families and our busi- other side is that we are taking care of en the availability and affordability of nesses. We cannot continue to allow the rich. Is the family tax credit tak- basic medical care. Another $180 billion government to grow and grow and ing care of the rich? Is giving breaks of cuts in Medicaid will tear at the grow. for working families through an adop- family budgets of millions of elderly No, Mr. Chairman, it is time to resist tion tax credit taking care of the rich? Americans, and their children, who are the enemies of change, to be coura- Is giving families the ability to use an trying to cope with the costs of nursing geous, something that has been lacking IRA for first-time home buying, for care. in Washington, DC for too long; to do health care expenses, to encourage sav- The promises broken in this bill are the right thing, for our country and for ings, is that taking care of the rich? I far too many to mention in just a few our children. think not. minutes. But one deserves special at- Mr. GIBBONS. Mr. Chairman, I yield Let us call this what it is. Inherent tention. The promise of the Contract 2 minutes to the gentleman from Wash- in this question is the moral question With America—in the Speaker’s term, ington [Mr. MCDERMOTT]. of what type of world we will leave to the crown jewel—was a $500-per-child Mr. MCDERMOTT. Mr. Chairman, I the children of America. tax credit. Under the bill before us would suggest to the gentleman from There can be no serious question as today, the crown jewels have been de- Oklahoma that if this bill had come to the two paths before us. We can stay valued by 27 percent. This bill walks down from on high, our good Lord on the path we have been on and de- away from that promise and many would not be doing to the poor, sick, liver a future of unsustainable spend- more. But the bill does preserve the and disabled of this country what is in ing and crushing debt, huge increases spirit of the contract in one important this bill. in taxes that dash hopes and dreams, way—the elderly, the middle class, and We went through a charade here last and in the end that promise fewer op- the poor bear the burden of paying for week to convince the American people portunities and a poorer quality of life tax cuts that overwhelmingly benefit that there was no connection between for the smallest among us, who, inci- wealthy taxpayers. Medicare and the tax cuts. We had dentally, do not have the ability to There will be an opportunity tomor- speaker after speaker saying no, we are vote. row to vote for a plan that will balance doing one this week, and we are doing Or we can take another path, a the budget in 7 years. We can vote for one the next week, and there is no con- brighter path. It will require courage, a plan that will borrow less money nection. but it represents the hopes and the as- than the Republican plan, that will But if you take this bill, 724 pages, go pirations of every parent for every balance the budget without tax in- to page 1324, and it says ‘‘H.R. 2425 as child in America. It promises an Amer- creases, and that does not require the passed by the House of Representatives ica where our children can have better harsh and unwise cuts proposed by the is hereby enacted into law.’’ Medicare lives than we. It will make America Republican budget. is mixed in with the tax breaks. Now, stronger for our generation, for our I refer to the coalition budget. That that is the essence of what this bill is children’s generation, and for genera- substitute demonstrates you can bal- all about. tions to come. It maps out a positive ance the budget in 7 years without the There is no question that the Repub- future for our country by beginning the extreme proposals of the Republicans, lican revolution is intended to give 1 tough task of balancing the Federal with less borrowing, if you only will percent of Americans who make more budget and beginning to pay off our na- give up the special-interest tax breaks than $200,000 annually a tax cut that tional debt. that are included in the Republican averages $12,600. But if you are in the With the national debt approaching bill. 19 percent of the families in this coun- $5 trillion and expected to reach almost try earning less than $10,000, you will $8 trillion by 2010, and interested pay- b 1615 have a tax increase of $25 a year. More ments scheduled to surpass the money Mr. KASICH. Mr. Chairman, I yield 2 than half of the cuts, 52 percent, go to we now spend on our national defense, minutes to the distinguished gen- 5.6 percent of the Americans at the top now is not the time for our political tleman from Oklahoma [Mr. LARGENT], of the schedule. needs to buckle. A balanced budget is a member of the Committee on the Now, at the same time, this bill the surest strategy to increase Amer- Budget. takes $23 billion and puts it as a tax in- ican productivity and living standards. Mr. LARGENT. Mr. Chairman, it was crease on the low-income families in That is not according to some Repub- Robert Kennedy who said that progress this country who are trying to stay off lican rhetoric, that is according to is a nice word, but change is its welfare. These families will be hit dou- Alan Greenspan, the Chairman of the motivator, and change has its enemies. bly hard, first by the $23 billion cut in Federal Reserve. A balanced budget October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10787 means 6 million new jobs, rising family That is just simply not true. Mr. Chair- Mr. Chairman, the gentleman, the income, making homes, cars, edu- man, we are not cutting student loans. prior speaker, said that this reconcili- cation, or starting a new business more Student loans, the Pell grants are ation proposal is not perfect. The gen- affordable. going to grow; there are going to be a tleman is correct, and when imperfec- If we cave into 30-second sound bites, higher amount of Pell grants than be- tions are raised, the Members of this Mr. Speaker, if we fail to do the right fore. The total amount of student loans body should try to do something about thing because we do not agree with is going to grow. The only thing we are it before Members are going to be every single change that has been made doing is saying when you graduate in asked to vote on it. I will give you one in this pivotal package, will fail to do college in the 6 months that the tax- example: It is the pension reversion the right thing for our children. payer, the working Americans, single issue. Many of you know about it. Mr. GIBBONS. Mr. Chairman, I yield parents and mothers, are subsidizing Some do not know about it. You better 2 minutes to the gentleman from Vir- that loan, we are saying they are going get to know about it soon, because it is ginia [Mr. PAYNE]. to pay the interest. They are going to going to hit you in the first 6 months Mr. PAYNE of Virginia. Mr. Chair- accumulate the interest for that 6 of 1996. man, I thank the gentleman from Flor- months. That is the only difference. If you recall, in the eighties we had ida for yielding me this time. That is the only change we are making. massive withdrawals of pension funds Mr. Chairman, well, here we go Mr. KASICH. Mr. Chairman, I yield 2 by companies, companies that were ba- again. Fifteen years after George Bush minutes to the gentleman from New sically in trouble, $20 billion, and the warned this Nation about voodoo eco- Hampshire [Mr. BASS]. Pension Benefit Guaranty Corporation nomics, our friends on the other side of Mr. BASS. Mr. Chairman, I thank the had to take over a lot of these pension the aisle are up to their old tricks gentleman for yielding me time. programs. What we did in 1986, 1988, again. They are trying to tell the Mr. Chairman, I will start with a and 1990 under Reagan and Bush, on a American people that a 7 year $245 bil- quote that I would like to bring to bipartisan basis, is clean it up. So lion tax cut is an important step along your attention: It goes as follows: there is now an excise tax of 50 percent the road to a balanced budget. We have no right, frankly, to continue to if you take pension fund moneys out of This time, the American people know finance a Government budget that is 20 per- these pension programs, unless it goes better. They know that to cut taxes by cent debt-financed, and will be more debt-fi- to health care benefits for your retir- $245 billion, when you are $5 trillion in nanced in the years ahead, and leave it to ees. debt and when you are experiencing our children to figure out how to live with What the Committee on Ways and deficits of more than $160 billion annu- lower incomes than they otherwise would Means did, what the majority did, was ally, is not just bad economics, it also have. And believe me, it isn’t just our chil- put a provision in to allow companies runs against simple common sense. It dren. We’re going to be living with the con- sequence in the very near future. to take money out of their pension may please some, but it is bad public funds without any restraint. They can policy. Mr. Chairman, that is not NEWT use the money not only for health care, There is a better, more fiscally re- GINGRICH, our Speaker. That is not but they can use it to buy luxury cars, sponsible course for us to follow. It will DICK ARMEY. That is not our chairman, they can take the money out for bo- be on the floor tomorrow. This is a JOHN KASICH. In fact, it is not even nuses for their executive employees, budget written by our Conservative you, Mr. Chairman. That is President they can take the money out for lever- Democratic Coalition, which takes this Bill Clinton in 1993 talking about the aged buyouts. Nation straight to a balanced budget budget. In fact, the Pension Benefit Guar- by the year 2002, and it does so without Well, Mr. Chairman, I have 2 chil- anty Corporation, which is a non- these costly tax cuts. It contains real dren, Lucy and Jonathan, ages 2 and 4. partisan group, says that over $40 bil- budget reforms, and it cuts the budget They owe the Federal Government lion will be taken out of this fund over faster and deeper than the Republican today over $18,000. As has been said be- the next couple of years, probably in plan. Because our bill rejects tax cuts, fore, if we do nothing, in their lifetimes the first 6 months of 1996, when all of it provides a more moderate glide path they could owe as much as $180,000. I us are going to feel it, mainly because to the balanced budget. am not going to leave this country to there is an incentive. There is no excise We assure the solvency of the Medi- that kind of a destiny. The future of taxes for the first 6 months of 1996. care Program, but we do it fairly. Med- this country is indeed in our hands This is a provision that is going to do icare will receive $100 billion more today, and indeed, one could say, the major damage to the average American than the Republican plan. Medicaid world. worker, and this is a provision that is will receive $100 billion more. The vul- Now, this reconciliation package is strictly special interest. We received nerable rural hospitals in my district not perfect. There are problems with it. reports written by companies that were and elsewhere so dependent on Medi- There are problems with any document special interests that basically sup- care and Medicaid will receive fair re- that is developed as a result of consen- ported this provision, but all objective imbursements under our program. We sus. But what is at stake today is the outside groups have said this is going reject deep cuts in student loan pro- very institution of this Government to do major damage, major damage, to grams, retain the earned income tax and the country. We have spent beyond the average American worker. I would credit, and provide $80 billion more in our means now for over 30 years, and if just be aware of this, because we are discretionary spending in the areas we fail to get this country on a path to going to feel this in the first 6 months ranging from education to economic a balanced budget starting today, I do of 1996. development, to agriculture and to not know where my children, Jonathan Mr. KASICH. Mr. Chairman, I yield 2 conservation. and Lucy, are going to be 20 years, minutes to the distinguished gen- Mr. Chairman, let us reject this busi- from now. tleman from Michigan [Mr. SMITH]. ness as usual. We can and we should Mr. Chairman, when all the rhetoric Mr. SMITH of Michigan. Mr. Chair- not cut taxes when we have to borrow does down, the shrill rhetoric and man, I thank the gentleman for yield- this money from our children. Vote to- Chicken Little discussion about how ing me time. morrow for the Conservative Demo- the sky is falling in is over, the Amer- I think the question is to this side of cratic Coalition alternative. Vote ican people will remember this Con- the aisle, to the American people, do against the Republican reconciliation gress for many, many years after the we want to balance this budget, or do bill. rest of us are gone. we not? The American people are not Mr. KASICH. Mr. Chairman, I yield Please join me today in passing this too concerned about how we keep our 30 seconds to the gentleman from Ari- reconciliation package. It is needed. books, but let me just make a couple of zona [Mr. KOLBE]. Mr. GIBBONS. Mr. Chairman, I yield comments why it is so important to Mr. KOLBE. Mr. Chairman, I just 2 minutes to the gentleman from Cali- the American family, to our kids, and want to respond to one thing said by fornia [Mr. MATSUI]. our grandkids. the last speaker, and that is the impli- Mr. MATSUI. Mr. Chairman, I thank If you had a stack of $1,000 bills cation of deep cuts in student loans. the gentleman for yielding me time. pushed tightly together, $1 million H 10788 CONGRESSIONAL RECORD — HOUSE October 25, 1995 would be 4 inches high. Our debt in this Mr. colleagues—there, but for the set forth in his first inaugural address country is over 300 miles into outer grace of God, go I. Each and every when he said: space of tightly stacked $1,000 bills. Member of this body is blessed. We It is not my intention to do away with gov- Government has got its arm in the pot have a responsibility—a moral obliga- ernment. It is rather to make it work—work of available money that can be lent out tion—to do right by our children, our with us, not over us; stand by our side, not in this country to the tune of borrow- seniors, and our working families. This ride on our back. Government can and must ing 40 percent of all of the money lent bill fails that test. provide opportunity, not smother it; foster out last year. Two hundred and forty-five billion productivity, not stifle it. What does that mean as far as de- dollars can help a lot of families earn a This budget meets the Reagan goals. mand goes? Alan Greenspan, our top livable wage. It can feed a lot of chil- We must pass it. We must show the banker, Chairman of the Federal Re- dren. It can help a lot of students get American people that we can and will serve, says if we could end up with a through school. It can provide medical deliver the change that they want. balanced budget we would see a 1.5 to 2 care for hundreds of thousands of sen- Mr. GIBBONS. Mr. Chairman, I yield percent lower interest rate. What do iors. With $245 billion, you can do a lot 2 minutes and 30 seconds to the gen- you think that means to somebody of good for a lot of people. tleman from Wisconsin [Mr. KLECZKA]. that is paying off a college loan? Or you can squander it on a privi- Mr. KLECZKA. Mr. Chairman, I want to thank the gentleman from Florida b 1630 leged few. You can pay for a tax cut for rich, political friends. That is the [Mr. GIBBONS] for yielding me the time. I will tell Members what it means. It choice you make today. I urge you to We have heard a lot of talk today means on the average an individual look within your heart—to do what is about deficit reduction and, clearly, would save $2,000 over the payback pe- right. Vote ‘‘no’’ on this proposal. It is this bill is intended to do that. But as riod of their loan. What does it mean to cruel, it is mean, it is downright low- we talk about, like the former speaker, a family paying off a $100,000 home that down. about reducing the deficit, very few of they are buying on that mortgage? It Mr. KASICH. Mr. Chairman, I yield 2 my Republican colleagues tell us how means a $2,000 savings. It means that minutes to the distinguished gen- they are doing this. we are going to expand jobs and the tleman from Kentucky [Mr. BUNNING]. We spent 1 day of debate last week economy in this country. (Mr. BUNNING of Kentucky asked talking about the Medicare cuts that The President sent us a budget. CBO and was given permission to revise and are embodied in this bill. Also em- says it is never going to balance. And extend his remarks.) bodied in this bill are substantial tax yet right now, in his press conference, Mr. BUNNING of Kentucky. Mr. cuts. Now, my friends, if we are trying the President is announcing that with Chairman, I come to the floor with a to resolve a budget deficit and we have the growth in the economy we probably great deal of pride today. We can and no money, where, I ask my colleagues, would not have to have any spending should take pride in the fact that for are the dollars coming from to fund a cuts. the first time in a very long time the tax cut, one which, I have to tell Mem- Mr. Chairman, just let me finish by House of Representatives is going to do bers, is purportedly going to the middle saying back in 1947 the Federal Govern- what is right for the future of this class. ment operated on 12 percent of the great Nation—we are balancing the Well, my Republican friends have a GDP. We used 12 percent of the GDP to budget. new definition of Republican middle operate this place. We know what it is We will pass this balanced budget and class. I will share that with Members. now. It is almost double that. We have set the country’s finances back on the Here is a quote from one of the Repub- expanded this Government, spending 22 right path for the first time since 1969. lican Members of the House, and he in- percent of our gross domestic product. It is a vote for the future and a vote for dicates ‘‘When I see someone who is If we care about our kids and our making anywhere from $300,000 a year grandkids, let us get back in focus, let our children and grandchildren. We are stemming the flow of red ink to $750,000 a year, that is middle class. us balance this budget. When I see anyone above that, that is Mr. GIBBONS. Mr. Chairman, I yield from the Federal Treasury so that my upper middle class.’’ I think this indi- 2 minutes to the gentleman from Geor- 28 grandchildren won’t be stuck with cates to us where the tax cuts are gia [Mr. LEWIS]. bills run up by their grandfather’s gen- Mr. LEWIS of Georgia. Mr. Chair- eration. going and where this whole deficit re- man, this bill is really not a reconcili- I am also proud of the fact that we duction bill is going. ation bill, it is a wrecker ball bill on listened to the American people and we Mr. Chairman, I specifically want to middle class families. are doing what we promised to do. We address an issue which I think is very, Mr. Chairman, an ugly spirit has are delivering on the change that the very important to the working men risen in our Nation’s Capital. A mean people want. and women of this country. My friend, spirit. A cruel spirit. A spirit that gave The people want welfare reform; and, the gentleman from California, BOB rise to this Republican bill. we are delivering. The people want tax MATSUI, talked about this before. In Republicans raise taxes on the work- relief; and, we are delivering. The peo- this bill there is a provision which will ing poor—and cut taxes for the idle ple want us to save Medicare from permit corporations to raid their pen- rich. Republicans raise taxes on 30 mil- going bankrupt; and, we are delivering. sion plans to the tune of $40 billion. lion working families. The people want more power returned Corporations under this bill can take Republicans spend more on defense, to the States; and, we are delivering. out of their pension plans, which is put but cut Head Start, school lunches, and The baby boomers will be retiring there by workers, reserved for their student loans. They choose bombers soon and that means that they will be workers’ pension. This bill says they over babies, defense contractors over looking for Social Security and Medi- can take up to about $40 billion out of children, star wars over schools. care benefits. This budget helps to en- that nationwide. Do you really want a welfare bill sure that those benefits will be there The problem with that policy, Mr. that would put children in orphanages? when they need them. Chairman, is who will pick up the tab Do you want to return to the days This is a good budget. For a change, if these pension plans cannot meet when families put the disabled in back it shows that we can keep our promises their obligations? We have an answer. rooms. Do you want to send senior citi- and it shows the American people that It is called the Pension Guaranty Cor- zens to dilapidated hospitals and sec- we listened to what they want instead poration, a Federal agency ensuring ond rate medical care? of acting like the national nanny. pension plans. But they have their fi- I cannot believe, I truly cannot be- There are many in this House who do nancial problems on their own even lieve what this bill does to our coun- not like the new way of doing things. without this. So I say, and my other try. There are Americans who need our But, I am willing to bet that the Amer- colleagues will say to Members, this help. Children do not choose to go hun- ican people like knowing that we are will end up another savings and loan gry. The elderly do not choose to be- doing things their way, for a change. bailout. Because if the Pension Guar- come sick. The handicapped do not My friends, this is the opportunity to anty Corporation does not have the choose to be disabled. fulfill the vision that President Reagan money after the corporation is October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10789 skimmed $40 billion, it is the taxpayers plaints about other aspects of this Today, the national debt is $18,800 for who will have to shell out the money. budget. Seniors are scared about dras- every man, woman, and child in the The CHAIRMAN. The Chair reminds tic cuts to Medicare. They fear what United States, and is getting larger all Members that they should direct will happen to them if they are struck and larger every year. their remarks to the Chair and not to with a catastrophic illness. We are spending more money on in- the audience or anyone else outside of College students are afraid about the terest on the national debt than we do the Chamber. changes to student loans. Will they be for the Army, Navy, Air Force, Ma- Mr. KASICH. Mr. Chairman, I yield 2 able to afford to finish college? Parents rines, and the CIA combined. The minutes to the distinguished gentle- are afraid they will not be able to pay greatest threat we have to all the good woman from North Carolina [Mrs. for the college tuition of their chil- programs in this Government, like MYRICK]. dren. Medicare or Head Start, the threat is Mrs. MYRICK. Mr. Chairman, the na- Individuals who have worked their interest on the national debt. If we do tional debt now stands at $4.8 trillion, way off of welfare are angry about not get that under control, we are and this means that a child who is born changes to the earned income tax cred- going to make the future generations today is going to have to pay $180,000 it. The EITC has been an extremely pay dearly. just to pay the interest on the debt successful incentive for work. Even Mr. Chairman, it only makes sense to over their lifetime. That is $3,500 in President Reagan was supportive of the balance our budget. I was home this taxes every year of their working life. EITC. In 1986, he stated that EITC was weekend and talked to a city council- We are literally mortgaging our chil- ‘‘the best anti-poverty, the best pro- man from Venice, FL, and a city com- dren’s future and straddling them with family, the best job-creation measure missioner from Sarasota, and county a mountain of debt. to come out of Congress.’’ commissioners and State legislators. As a mother of five and grandmother Hard-working Americans do not un- They have to balance their budget. Ev- of six, almost seven, I have a moral ob- derstand the corporate pension rever- erybody understands that. Why do we ligation to balance this budget for sion provision. Why should corpora- not understand it in Washington? them because I want my kids and tions be allowed to raid pension plans? All we want to do is balance the Fed- grandkids to have a better future, to I look at this provision and all I can eral budget. It makes sense. No one can have more opportunity than I have. see is the ghost of the S&L crisis. How argue with that. We argue about all But, how can that happen if they start do we explain this onerous provision to this we are cutting; we are increasing out with this great mountain of debt the American people? We cannot light spending and we are doing it for the on their backs? a match to the pension funds of hard- kids and the future generations. Mr. Chairman, it has been stated if working individuals. Mr. Chairman, the cruelest thing we The Citizens For Tax Justice’s analy- we balance the budget, interest rates can do is to continue to overspend and sis of the tax cuts included in this rec- will drop 2 percent. Now, that may not leave this horrible debt with our kids onciliation package indicates that 52.3 sound like a lot, but just consider the and our future generations. We must percent of the tax cuts go to 5.6 percent fact that that means, on a 30-year pass this budget reconciliation tomor- of Americans with incomes greater mortgage on a $75,000 house, an individ- row. than $100,000 a year. Less than 1 per- ual would save $37,000. That is enough Mr. BROWDER. Mr. Chairman, I cent of these tax cuts would go to the to put our kids through college. It also think we are going to give our col- 40 percent of families earning $20,000 or means that an individual would save leagues a break and change the topic of less per year. $900 on a $15,000 car loan. My goodness, This budget heads the country in the the conversation around here because, look at what that would mean to a wrong direction. We need to be respon- frankly, the folks over to my right and young person starting out or a young sible legislators. This legislation is not my friends on the Republican side are couple. responsible. I urge you to vote against right, and the folks to my left who Mr. Chairman, the family is the most budget reconciliation. have been discussing that budget are important part of society in America We owe the American people more right. today and a balanced budget is good for than this budget. It is our obligation to The fact is, the reconciliation bill the American family. On behalf of our do better. that the Republicans have presented children and our children’s children we does try to balance the budget by 2002. need to vote for a balanced budget and b 1645 But the folks over here are right too, to do that so we will be sure that to- The CHAIRMAN (Mr. BOEHNER). All in that it goes too far. morrow’s dream, the American dream, time has expired. Under the unani- Mr. Chairman, what we would like to does not turn into tomorrow’s night- mous-consent agreement previously do is take a few minutes and have a few mare. agreed to, the gentleman from Ala- of our colleagues talk about an alter- Mr. GIBBONS. Mr. Chairman, I yield bama [Mr. BROWDER] is recognized for native budget, an alternative reconcili- the balance of my time of the gen- 10 minutes. ation plan that was prepared by the co- tleman from Massachusetts [Mr. Mr. KASICH. Mr. Chairman, I yield 2 alition. We think that our alternative NEAL]. minutes to the distinguished gen- plan is better than what has been of- Mr. NEAL of Massachusetts. Mr. tleman from Florida [Mr. MILLER]. fered by the Republicans, because it Chairman, I stand here before you Mr. MILLER of Florida. Mr. Chair- achieves balance by the year 2002, as today to oppose this budget reconcili- man, this is an historic occasion as we the Republicans’ plan does, but ours ation package. We are beginning this get ready to vote on the budget rec- does it in a way that is more respon- historic debate on the future direction onciliation bill tomorrow. For those of sible. It accumulates less debt for our of our country. This budget heads the us who have worked so hard to get to Nation over that period, and it is fairer country in the wrong direction. It is a this point, it really is exciting. to the people such as senior citizens, shame that we could not be here today Mr. Chairman, we have made some farmers, and students and other people debating a bipartisan budget which has difficult choices getting to this point that we think the plan should be fair a sole purpose of meaningful deficit re- today, but I look at this as a moral to. duction. issue that we are fighting today. Just What I would like to do is recognize This budget harms the American peo- as our parents and grandparents fought a few of our coalition members, and a ple. The Medicare cuts totaling $270 the war against fascism, and we re- few Members of Congress who are not billion go too far. These extreme cuts cently had the war against com- coalition members, to talk about the are needed in order to pay for $245 bil- munism, we won those; the moral fight coalition budget. lion in tax cuts to wealthy Americans. we are having today is about balancing Mr. Chairman, I yield 3 minutes to We debated this tax cut back in the this budget. It is a moral issue. It is ob- the distinguished gentleman from spring and I still believe it is not need- scene what we are doing by overspend- Oklahoma [Mr. BREWSTER]. ed. ing in the Federal Government by over (Mr. BREWSTER asked and was I have been traveling throughout my $600 for every man, woman, and child given permission to revise and extend district and I have heard angry com- in the United States. his remarks.) H 10790 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Mr. BREWSTER. Mr. Chairman, I am vote for the coalition budget reconcili- Medicare at military hospitals or any proud to be speaking on the House ation substitute tomorrow. other facilities they so desire. floor today in what I feel is an historic Mr. KASICH. Mr. Chairman, I yield 2 The important point to come out of debate. This Congress is finally consid- minutes to the very distinguished gen- this debate over the next 2 days, Mr. ering plans to balance our Nation’s tleman from Texas [Mr. ARCHER], Chairman, is that our coalition budget budget in 7 years, and I think we chairman of the Committee on Ways gets to balance in 2002, in a more re- should all be proud of that. and Means. sponsible, fair, and wise manner than However, there are two plans that Mr. ARCHER. Mr. Chairman, there does the Republican plan. will be considered tomorrow that will has been a great deal of scare tactics Mr. KASICH. Mr. Chairman, I yield 2 achieve a balanced budget and I feel here on the floor today about the pen- minutes to the distinguished gen- the coalition alternative is the most sion reversion issue that is a part of tleman from California [Mr. HERGER], a fair and honest approach to this goal. this bill. Let me tell my colleagues member of both the Committee on The coalition budget reconciliation that we should be interested in Ways and Means and the Committee on is a responsible budget alternative that strengthening pension plans in this the Budget, and the great catcher for meets all the deficit reduction require- country. the Republican baseball team. ments for a balanced budget by 2002. Over the last 5 years, there have been Mr. HERGER. Mr. Chairman, today In order to balance the budget, we no new defined benefit plans created in we have embarked on a truly historic must all support some cuts in valuable the United States of America. Many debate that will ultimately culminate programs. However, cutting programs have been frozen or terminated. It is in the passage of the first balanced fairly and gutting them are two totally because of the very unwise policy that budget in over a quarter of a century. different alternatives. The coalition this country has conducted toward pen- Mr. Chairman, the American voters budget is much kinder on many pro- sion plans over the last 10 to 12 years. sent Members of this Congress here to grams important to all Americans than Mr. Chairman, this bill turns that Washington to change business as the Republican budget reconciliation. around. It includes pension simplifica- usual and put our national fiscal house First, we make no cuts in guaranteed tion, and, yes, it includes the ability of in order. Mr. Chairman, the American student loans. The coalition under- employers to withdraw excess funding people understand how to balance a stands the importance of education and above 125 percent, of liability. budget. They do it every day. Unlike will not make it more expensive for ERISA only requires that employers Washington, small business owners middle- and low-income families to ob- keep 100 percent of liability in the fund have to meet budgets and payrolls or tain college loans like the Republican to qualify. But if they get 125 percent, they will go out of business. bill. they still cannot withdraw any of those Local governments have to live with- The coalition budget cuts $80 billion funds. As a result, employers are not in their means. Mr. Chairman, families less from education, Head Start, rural going to fund extra above the 100 per- across this Nation sit around their health care, and economic development cent, because they know they can kitchen tables every month to figure than the Republican bill. And, we cut never get their money back if they get out how to provide shelter, food, and $10 billion less from agriculture pro- above 125 percent. clothing for their families with only grams, preserving agriculture subsidies Mr. Chairman, our bill encourages the money they currently have. Indeed, in a way that doesn’t unilaterally dis- employers to fund more in the mar- the American people know how to bal- arm American farmers in a global mar- ginal plans, and that is what we should ance a budget and, Mr. Chairman, it is ketplace. be doing. If ERISA was inadequate in time that Washington does the same. We cut $100 billion less from Medi- having plans qualify with only 100 per- Yet, ironically, the Americans that care coverage for our Nation’s seniors cent of accrued liability, ERISA needs will benefit the most from this bal- than the Republican budget. We cut to be changed. The plans that are vul- anced budget are not even old enough $100 billion less from Medicaid than the nerable in the event of a decline in the to vote: our children. Republican bill. And, in addition to market are the plans that are 90 to 100 Mr. Chairman, it is morally wrong to that, we accumulate much less debt percent, but which qualify under ask future generations to pay for the than the Republican plan over 7 years, ERISA, not the plans that are funded current excessive expenditures. For ex- because we set a more responsible above 125 percent of liability. ample, past spending has left a $5 tril- glidepath. So, Mr. Chairman, we constructively lion legacy for a child born today, Mr. Chairman, this substitute and proudly move forward with this which faces $187,000 in taxes just to pay reaches the same goal as the Repub- bill to encourage more defined benefit their inherited share of interest on the lican budget—a balanced budget by plans, adequately funded. national debt. 2002. And, yet the coalition substitute Mr. BROWDER. Mr. Chairman, I Mr. Chairman, the budget before us provides more money for those in need. yield 1 minute to the gentleman from today is a fair one. It puts an end to Mr. Chairman, whether or not you Tennessee [Mr. TANNER]. frivolous expenditures by finally support tax cuts is not the issue today. Mr. TANNER. Mr. Chairman, I want prioritizing spending and making the Many of us in the coalition support tax to talk about the coalition’s alter- tough choices that previous Congresses cuts, however, we firmly believe you native budget for a minute, because on refused to make. ought to cut spending first before you the floor earlier today there was a Mr. Chairman, it is our moral obliga- give the money out for tax cuts. statement made that the Republicans tion to pass this historic balanced The coalition alternative also re- had the only budget reconciliation plan budget. wards work with a welfare plan that, that got to a balance in 2002. That sim- Mr. BROWDER. Mr. Chairman, I according to the CBO, will put more ply is not the case. yield 1 minute to the gentlewoman people to work than the Republican Mr. Chairman, the coalition plan from Arkansas [Mrs. LINCOLN], an out- plan. We preserve the earned income cuts spending first. We get to a bal- standing coalition member. tax credit to reward those who are anced budget in 2002, borrowing about (Mrs. LINCOLN asked and was given working to stay off welfare rolls. The $50 billion less than the Republican permission to revise and extend her re- Republican plan would cut drastically plan will borrow between now and marks.) from this valuable work program. then. Mrs. LINCOLN. Mr. Chairman, there Mr. Chairman, this alternative is the Mr. Chairman, we do something else is a saying: Be careful what you wish only reasonable solution to putting our that is responsible, fair, and wise. We for, because you may get it. I think as Nation’s fiscal house in order. The peo- send a signal to the military veterans the Republicans embarked on this idea ple of this country have asked us to do of our country that we are going to of balancing the budget, and under the this, and I think this plan achieves keep their commitment. Our values are auspices of balancing the budget pre- that goal more quickly, and less pain- to keep the commitment from a grate- sented this package, they thought fully than the Republican plan. I urge ful country to our Nation’s veterans there would not be any Democrats that my colleagues to take a long, hard, and we have military retiree sub- actually honestly wanted to balance look at the coalition’s alternative and vention, so that they can use their the budget. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10791 Well, Mr. Chairman, there are. We thirds of it, which is what the Repub- mum value from that dollar in the op- have worked hard at coming up with a lican budget reconciliation bill prom- eration of Government. They have said responsible, fair package that will ac- ises. It promises both the balanced to me, if you cut programs as deeply as tually do that. There is an old southern budget in 7 years, and it promises to you must in order to offset the loss of saying that, there is more than one repeal at least two-thirds of that awful tax revenue in Washington, these are way to skin a cat, and I think that is tax increase in the last Congress. programs that will be picked up in exactly what we have done. Let me make one final pitch to my rural America. As these programs are Mr. Chairman, we have addressed ag- colleagues. I am going to try to put picked up in rural America, you will be riculture here. We do not unilaterally this in terms I think families under- increasing the property taxes on farm- disarm American farmers in a global stand. I was raised, I think most of my ers in order to pay for tax cuts for af- agricultural marketplace where other colleagues were raised, to believe that fluent people in urban areas. nations are subsidizing far more than we ought to leave something good to This is a shift of taxes. It is not a cut we are, and we are working hard to bal- our children. We ought to leave them in taxes. This is shift No. 1. ance the budget on behalf of our chil- some patrimony, something of an in- The previous speaker eloquently re- dren and our children’s children. But, heritance out of what we earn and do minded us of our obligations to our we also recognize that they need edu- not spend. children. In fact, by cutting taxes at cational opportunities to be competi- If we were raised to believe that we this point in time, what we are doing is tive in a global marketplace. We not ought to leave something to our chil- enjoying the opportunity to spend only balance the budget for our chil- dren that they can build their future more, to have more, at the expense of dren, but we give them the capability on, then I think members will under- our children. This is shift No. 2. We are and the resources they need to be able stand what I am about to say. We talk not cutting taxes, we are shifting taxes to be independent and productive for about crime in America. If we take all to our children. Third, we are cutting other taxes and themselves in years to come. the crime that is committed on the streets of America and lump them all we are cutting other benefits. We are b 1700 together, they are a misdemeanor com- cutting an earned income tax credit in This is a fair, reasonable, and wise pared to the crime we commit here in order to offset the loss of revenue. approach to making sure that we do Washington when we budget not only Shift No. 3. We, indeed, have a bloated spending balance the budget. We look at all as- the income we make this year but the policy in this country. We must correct pects of it and do it in a fair way. income or children have not yet it. But the coalition believes that we Mr. KASICH. Mr. Chairman, I yield 3 earned. When we spend every year the need a diet. We do not need a dessert at minutes to the very distinguished gen- unearned income of our children and tleman from the State of Louisiana this point in time. That is what the Re- grandchildren to satisfy whatever we publicans are dishing up, a dessert of a [Mr. TAUZIN]. think is important for our life this Mr. TAUZIN. Mr. Chairman, let me tax cut. year, we violate the most sacred pledge The CHAIRMAN. The gentleman first pay my respects to my blue dog I think we make as parents to our chil- from Alabama [Mr. BROWDER] has 1 Democratic friends and acknowledge dren. minute remaining. the effort they have made in presenting We ought to be giving them some- Mr. KASICH. Mr. Chairman, I yield 2 an alternative budget for us today. The thing good to build on. Instead, we are minutes to the distinguished gen- fact that there is a second budget, giving them debt and mortgage. We are tleman from Kansas [Mr. BROWNBACK], which does promise us a balanced budg- giving them a promise that they will a member of the Committee on the et in 7 years, is encouraging. spend 80 percent of their income in Budget. Let me also congratulate the Presi- Federal taxes to pay this debt. Mr. BROWNBACK. Mr. Chairman, dent for saying that he, too, believes Can we not agree to end it now? Can today I can say I am proud to be a that we can do this thing in 7 years and we not agree to pass a balanced budget Member of this Congress. Since 1969, end this terrible debt we are creating amendment, and can we not agree to this body has rejected its responsibility for our children by balancing our budg- repeal some of that awful tax increase to balance the Federal budget. Today et over 7 years. Let me also acknowl- of the last Congress? we vote to accept that responsibility, edge the fact that the President admit- Mr. BROWDER. Mr. Chairman, I am and I am proud that we are accepting ted that maybe he did raise taxes too tempted to take time to remind the that responsibility. much last Congress. gentleman that I voted against that We were elected to this Congress to For all of my colleagues who believe bill 2 years ago and ask him how he balance the budget, and this bill does that in this choice between the Repub- voted. But I do not think I will take that. We were elected to Congress for lican balanced budget, which includes that time. another reason, too. That was to make the capacity to reduce the tax burdens Mr. Chairman, I yield 2 minutes and the Federal Government smaller, more on Americans and the balanced budget 30 seconds to the gentleman from Min- efficient and more focused. This bill proposed by my friends, the blue dog nesota [Mr. MINGE]. starts that process as well. Democrats, let me suggest to them Mr. MINGE. Mr. Chairman, I, too, am For instance, it eliminates the De- something: If my colleagues oppose a member of the coalition and proud of partment of Commerce, an agency that those tax increases the President now the work that our group has done. I ap- leads the list of those providing cor- regrets, if Members opposed that bill preciate the opportunity to address the porate welfare. This will be the first last year, then they ought to be for the question of how do we balance the time in the history of the Republic Republican budget which promises that budget in the United States in the mid– that we have actually eliminated a we are at least going to repeal about 1990’s. Cabinet-level agency. That is in this two-thirds of those awful tax increases I specifically would like to address bill to do it. We save $6 billion in the that my colleague opposed last Con- the topic of the tax cuts. All politi- process of doing that. gress. cians support efforts to cut taxes. The This budget reconciliation bill bal- Mr. KASICH. Mr. Chairman, will the question is, when can it be done re- ances the budget, makes the Federal gentleman yield? sponsibly? the people of this country Government smaller, more efficient, Mr. TAUZIN. I yield to the gen- recognize that it is not prudent to cut more focused. This makes it a proud tleman from Ohio. taxes at this time. It is not prudent. In day for me, a good day for this country Mr. KASICH. Mr. Chairman, would fact, it is pandering. and a great day for my children and the gentleman say that again? I have talked to a number of county your children. Mr. TAUZIN. Mr. Chairman, I will be commissioners throughout my congres- Mr. BROWDER. Mr. Chairman, I happy to say it again. If anyone in this sional district, and there are 27 coun- yield 30 seconds to the gentleman from House voted against that tax increase ties in my district; there are many Indiana [Mr. VISCLOSKY]. bill that President Clinton gave us last county commissioners. These are gen- (Mr. VISCLOSKY asked and was Congress, if Members opposed it, they tlemen and women that appreciate the given permission to revise and extend ought to this year be for repealing two- value of the dollar in obtaining maxi- his remarks.) H 10792 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Mr. VISCLOSKY. Mr. Chairman, I panies would be able to remove the so-called the Budget and the Committee on Ap- rise in strong support of the coalition excess moneyÐdefined as 125 percent of cur- propriations. budget for four reasons. First of all, it rent liabilitiesÐfrom their pension funds. Cur- Mr. HOBSON. Mr. Chairman, I turned looks towards the future first, not the rently, if a company takes excess funds out of 59 years old last week, and in an effort past. Second, it does the heavy lifting a pension plan, a 20 percent to 50 percent ex- to remind me of the advanced age I’m first. Third, it borrows less money, cise tax is levied on the withdrawal. In addi- reaching, one of my friends sent me a leaves us with a surplus at the end of tion, the company must pay income tax on the birthday card which displayed the 2002 and again proves the prudence of amount removed. To raise revenue, the Re- prices of common household items in doing the heavy lifting first. Finally, it publican proposal would eliminate the excise the year I was born. A gallon of gas was is enforceable. It will do what it says it tax entirely, giving companies a strong incen- a dime, a new car was $600, and a new will do. It is not engaged in subverting tive to dip into pension funds. home was $6,000. other social policy goals such as rob- Pension plan assets represent deferred My second grandchild was born re- bing workers’ pensions. compensation for plan participants. As such, cently, and I think of these prices when Mr. Chairman, I rise today in opposition to workers and retirees should benefit from the I consider what kind of future he will the Republican budget reconciliation bill and in profitable investment of these funds. I believe face. How much will Jameson, David, support of the coalition alternative plan. that any surplus assets should be used to in- my most recent grandchild, and Katie I believe the time has come to balance the sure the soundness of workers' pensions, or Marie, see prices rise during their life- budget. This is what my constituents want be- to fund benefit increases for plan participants, time? Will the country still be a place cause they know that the economic futures of rather than going into unrelated management of opportunity? Will there still be a their children and grandchildren depend on it. ventures. thriving economy to support their gen- They want us to balance the budget in a way I am adamantly opposed to this proposal eration? When I think about the an- that is both fair and effective, and this is what because it would leave workers' pensions vul- swers to these questions, it becomes in- the coalition substitute would do. nerable in the event of an economic downturn. creasingly clear to me that the best While I do not endorse each of its provi- It could create a pension raid similar to the thing I can do for my new grandchild is sions, the coalition substitute is fair because it 1980's when the Federal Government was to vote ‘‘yes’’ on the reconciliation asks everyone, regardless of age or cir- forced to take over underfunded pension package. cumstance in life, to share the sacrifice for the plans, paying out billions of dollars in the proc- When they look back on this day, our benefit of the common good. Unlike the Re- ess. own children and grandchildren will publican plan, it does not transfer funding for It seems the new Republican majority has judge us—and judge us harshly—if we social programs, that benefit the old and poor, forgotten the old Republican rallying cryÐ``Cut fail to do our duty, if we continue to to subsidize tax cuts for the rich. Spending First!'' Balancing the budget is like rob future generations because we do The coalition substitute would balance the curing a cold, the longer you put off swallow- not have enough backbone to control budget in 7 years. It places deficit reduction ing bad-tasting medicine, the longer it takes to our spending in this Chamber. Every first and does not borrow money to pay for up- return to good health. time we deficit-spend we are refusing front tax cuts, like the Republican plan. Fur- Finally, I am pleased that the coalition sub- to take responsibility for our actions. ther, the coalition substitute will work, and it stitute includes enforcement language similar We know what needs to be done, we takes a rational and responsible approach to to what is contained in legislation I introduced should follow through with what we balancing the budget. Not only would it restore earlier this year, along with our colleagues, know is right. sane spending priorities by adding back fund- Representatives STENHOLM, DOOLEY, BARRETT, Many constituents I’ve talked to ing for education, health, and economic devel- MINGE, and POSHARD. Like my bill, H.R. 1516, have had concerns about specific pro- opment programs, it also achieves a budget the coalition substitute would enact tough, new grams they benefit from, but without surplus in 2002. measures to reform the budget process and fail, they also remind me to follow Less pain with more gainÐWhy? Because eliminate the Federal budget deficit by the through with the promise to balance this alternative reconciliation bill reaffirms the year 2002. It would do so by setting spending the budget. People are willing to ac- logic of achieving a balanced budget one step caps and using across-the-board cuts if the cept the changes necessary to preserve at a time. The coalition plan would provide targets, set and evaluated by a nonpartisan our country’s fiscal security, but they about $42 billion more in deficit reductionÐ board of estimates, are not met. want us to make sure that what we do and less total debtÐthan envisioned in the In January, I supported a constitutional is fair, and that we follow through on budget resolution conference report. This amendment to balance the budget for the first our commitment to balance the budg- means holding off on enacting expensive tax time because I finally lost faith that the Presi- et. cuts, which require slashing vital programs, dent and the Congress have the resolve to What we do in this bill impacts the until we are well on our way to ensuring a balance the budget without a constitutional full scope of Federal spending. It en- health national economy that can be enjoyed mandate. While this initiative failed, I still be- gages everyone in the task of balancing by generations to come. lieve that we need to hold our feet to the fire the budget. I know there are many here In contrast, the Republican budget and enforce our budgetary decisions. today whose parochial interests lead backloads deficit reduction until after the year In closing, Mr. Chairman, I believe that bal- them to declare this plan unfair. To 2000, when the spending cuts kick in and in- ancing the budget is our responsibility as those people I ask them to consider terest rates decline. In fact, nearly two-thirds Members of Congress. I have always sup- this: Is it fair to take the money, fu- of the deficit reduction in the Republican plan ported a balanced budget, and the responsibil- ture, and opportunity from generations occurs in the final 3 years. This is an ap- ity to achieve this is not one that I take lightly. of Americans who aren’t even born yet, proach that was tested in the early 1980's Over the years, I have frequently taken the who don’t have representation yet? under President Reagan and failed. When it political road less traveled in the name of defi- That’s what we do when we deficit- came time to make the difficult cuts, they did cit reduction. When I am in northwest Indiana, spend and run up the debt. Someone not materialize. Remember, the 1980s was the I tell my constituents that I am opposed to cut- pays and it isn’t those of us in this decade when the debt tripled under Repub- ting their taxes because it would undermine room, it is our children and grand- lican control of the White House. Therefore, as serious efforts to reduce the deficit. In March, children who trust us to look out for far as the effectiveness of the approach to I was one of only six Democrats to support the them. deficit reduction is concerned, I would say, rescissions bill, H.R. 1158, because I believe Protect our children’s and grand- ``Been there, done that, let's not do it again.'' we need to start making tough spending deci- children’s future, ensure a future of op- Further, I have grave concerns about the sions now. portunity, hold Government to the approach taken in the Republican budget rec- It is time to get serious about balancing the same balanced budget standards of onciliation bill. One of the most egregious budget. I urge the adoption of the coalition families and businesses: pass reconcili- parts of the Republican plan is a misguided substitute and the rejection of the Republican ation. proposal to raid workers' pensions that could budget reconciliation bill. Mr. BROWDER. Mr. Chairman, I jeopardize up to $100 billion in pension assets Mr. KASICH. Mr. Chairman, I yield 2 yield the sum total of 30 seconds to the and the retirement security of almost 15 mil- minutes and 30 seconds to the distin- gentleman from Indiana [Mr. ROEMER] lion American families. Specifically, this bad guished gentleman from Ohio [Mr. HOB- to conclude the discussion of the coali- proposal would gut pension rules so that com- SON], a member of the Committee on tion reconciliation bill. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10793 (Mr. ROEMER asked and was given is not wealthy Americans. That is not and France, and Germany and our permission to revise and extend his re- rich Americans. I was not standing in other economic competitors. marks.) front of ritzy stores. I was standing in Anyone who proposed after Pearl Mr. ROEMER. Mr. Chairman, bal- front of the grocery stores and the dis- Harbor to do away with the Defense ancing the budget is like trying to turn count markets, the Kmarts, in my dis- Department, to do away with the Sec- a blimp around in an alley. It is a trict talking to real Americans. retary of Defense in the Cabinet, would tough task. Our coalition budget pro- This is not a tax cut for the wealthy. have been run out of town. Today, as posal balances the budget by the year It is a tax cut for every single Amer- we have tens of billions of dollars of 2002, and it is preferable to the Repub- ican, and why are we going to do it? trade deficit with China and Japan, lican budget for two reasons: Mr. Chairman, it is their money, and people who propose to diminish our First, because it has tough choices they can spend it better than we can. ability to compete economically also with fair outcomes. We keep children The CHAIRMAN. The Chair recog- ought to be run out of town. in Head Start. We do not buy B–2 Mr. Chairman, tax cuts do not do any nizes the gentleman from Minnesota bombers that the Defense Department good for working men and women who [Mr. SABO], who, under a previous does not even want. lose their jobs. This proposal will not unanimous-consent agreement, has 50 Second, we say we should not pander only leave our mothers and fathers minutes remaining. to the electorate for tax cuts. Let us without adequate health care, it will require shared sacrifice from all Amer- Mr. SABO. Mr. Chairman, I yield 3 leave them without jobs. icans to achieve a balanced budget. We minutes to the distinguished gen- Mr. KASICH. Mr. Chairman, I yield 2 do that. I encourage my colleagues to tleman from Connecticut [Mr. GEJDEN- minutes to the distinguished gen- vote for the coalition budget. SON]. tleman from South Carolina [Mr. Mr. KASICH. Mr. Chairman, I yield 2 Mr. GEJDENSON. Mr. Chairman, INGLIS], a member of the Committee on minutes to the gentleman from Ari- what is most troubling about this rec- the Budget. zona [Mr. SHADEGG], a member of the onciliation proposal is tens of thou- Mr. INGLIS of South Carolina. Mr. Committee on the Budget. sands of dollars of tax cuts will go to Chairman, I thank the gentleman from (Mr. SHADEGG asked and was given people who make $300,000 and more. Ohio for yielding this time to me, and permission to revise and extend his re- Working men and women will be hurt I think everyone knows here, Mr. marks.) in numerous ways. Even Jack Kemp Chairman, that we have a problem. The Mr. SHADEGG. Mr. Chairman, we are says that there is an increase in this problem is we spend more money than here engaged in a debate, and a central proposal that the Republicans are of- we have got. The American people issue of that debate is the question of fering on poor working families and the know that, too, and they want a solu- tax cuts. I hear my colleagues on the impact of dismantling the Commerce tion. other side say we should not be doing Department will leave them not just Now the one or two ways to do it. tax cuts for the wealthy. Yet at the without a tax cut, a tax increase for One of the ways that was tried here in heart of our tax cut is a tax cut for these working families, it will leave 1993, and that is the President’s ap- every American who pays taxes and them without a job. proach, is to raise taxes. But, as we has children. I do not think that is the Mr. Chairman, the Commerce Depart- have all discovered, the American peo- definition of the wealthy. ment over the last year and a half has ple are paying about 50 cents out of But I take the issue of whether or not been responsible for 300,000 new jobs in every dollar they make in taxes. Fed- we ought to be doing tax cuts as a seri- this country. Doing away with a Cabi- eral, State, and local; we add it all up, ous one. I have a theory. The theory is net position of Commerce and replac- and it is 50 cents out of every dollar that those of us here in this Congress ing it with an agency head would be they make. Therefore on this side we all too often go home and talk to peo- akin to taking the Secretary of De- have concluded that is an unacceptable ple who attend our townhalls or Rotary fense in the midst of the cold war and approach. We cannot raise taxes. In clubs or Kiwanis clubs. We do not talk removing him from the Cabinet. As fact, in order to lessen that crushing to real Americans. So this last week- other countries increase their efforts burden we need to reduce taxes and end, I went home and spent 2 hours at export promotion to make sure allow people to keep more of what they talking to real Americans in front of there are jobs for working Americans, have got. drug stores and grocery stores and dis- So, the only solution is the other this proposal from the Republican ma- count stores. I had a staffer do it, too. one, and that is to cut spending. That jority will undercut our country’s abil- The results will shock my colleagues, is why I am excited about this rec- ity to compete internationally, and it and I urge them to do the same thing. onciliation bill. It gives us the best op- is, again, skewed illogically. While portunity we have had, in my time b 1715 three-quarters of our exports are non- here surely, to get a handle on this agricultural, three-quarters of the I talked to 55 different real Ameri- problem and to deal with the fact that money in support of exports goes to ag- cans in my district, women who walked we are spending more money than we up with one child in their arms and a riculture and 25 percent, a cut of 25 have got. second following along behind them, percent, occurs on the manufactured Mr. Chairman, this bill has the wel- and I asked them, I said, The Congress side of exports, hurting our ability to fare reform proposals that we so des- is engaged in a debate about whether compete further with Japan, with perately need, it has Medicare propos- we need deficit reduction or tax cuts or France, and other countries who take als that will keep the system from both. Do my colleagues know how they this competition very seriously. going broke, it has the appropriations responded? I will tell my colleagues One of the Republicans earlier called bills that are on budget target. The re- how they responded. Eighty-two per- the middle-class people who make sult of all that is that we will be on the cent said they need real tax cuts in $300,000 to $700,000 a year. I only wish path to balancing the budget in the their lives. Of the 55 people I talked to, that was the middle class in America, year 2002, something the American peo- 8 said we ought to be focused on deficit but one thing the middle class wants ple desperately want us to do. reduction, just 8 of 55. Thirty-two of more than anything is to make sure The only thing that I would urge my the fifty-five said they want to see us that their parents are safe with Medi- colleagues to avoid in all this process both do deficit reduction and tax cuts care, if they need nursing home care, though is the danger of demagoguery, because they do feel overburdened by that is provided, and that they and and there is a tremendous danger, we today’s taxes. Thirteen said they want- their children have jobs and have the are all guilty of it at times on our side, ed tax cuts only. The burden of Federal ability to work so that they can feed maybe when we are talking about taxes in their lives is oppressive. and pay for their family needs. That is President Clinton’s tax increase. They By the way, in 1950 it was 1 dollar out central among what Americans want. engage in a little bit of that on their of 50. Today it is 1 dollar out of every Doing away with the Cabinet position side in this debate. There is a lot of 4 that an American family earns. of Secretary of Commerce saves no demagoguery that scares a lot of peo- So a total of 45 of the 55 said they money and will cripple the Cabinet ple to death. There is only one dif- needed tax cuts in their families. That Secretary’s ability to deal with Japan, ference: We did not scare many people H 10794 CONGRESSIONAL RECORD — HOUSE October 25, 1995 that were well-to-do with a fear about the Republican reconciliation plan Section 17207(g) of the bill aims to reduce a tax increase. But if my colleagues today, the Cramer amendment that the funding for the remnants of the National continue the demagoguery on Medi- passed that preserved the certification Oceanic and Atmospheric Administration and care, they are going to scare a whole process, that would be done away with; the National Institute of Standards by 25 per- lot of people to death out there in is that correct? cent below fiscal year 1995 spending levels. America that are very worried about Mr. BROWN of California. Yes, that The intent, I believe, was to eliminate adminis- how they are going to make it. We in- is correct, and that would be a serious trative overhead. The problem here is that tend to save the program so that they blow to the efficacy of our weather sys- both agencies have depended heavily on de- can make it. tem throughout the United States be- partmental level administrative support since Mr. SABO. Mr. Chairman, I yield 5 cause we are going through a major they have been a part of the Department of minutes to the distinguished gen- transition. The law requires, and the Commerce. Less than 10 percent of each tleman from California [Mr. BROWN]. gentleman’s amendment required, that agency's 1995 budget is related to program (Mr. BROWN of California asked and we do not close stations unless it is management at all, and only a fraction of that was given permission to revise and ex- certified by appropriate authority, that could be considered administrative overhead. tend his remarks.) this does not decrease the availability The chart before you shows how this arbi- Mr. BROWN of California. Mr. Chair- of service, and that is not a part of the trary budget cap would affect the functions of man, before I yield briefly to the dis- language that is contained in this bill. the two agencies. For NOAA, over 70 percent tinguished gentleman from Alabama Mr. CRAMER. If the ranking member of the agency funding is directly related or [Mr. CRAMER], let me set the scene. The would continue to yield, that is a very supports weather forecasting. This involves Committee on Science has referred to important public safety issue that we the weather offices around the country, the this as the Commerce Dismantling Act would be giving up if we passed the Re- Doppler radars that are being installed to pro- because we have either full or partial publican plan today. vide better severe weather tracking, and the Mr. BROWN of California. That is ab- jurisdiction over about two-thirds of satellites that have revolutionized hurricane solutely correct. the Commerce budget, particularly tracking and overall weather predictions. The NOAA and NIST, and we considered Now in the brief time that I have I am just going to make a couple of remainder of NOAA is related to coastal and that and took certain actions which fishery programs and supports a multibillion basically were taken unanimously in points, and I hope my colleagues can see this chart. What we were faced dollar industry. the committee which would have pro- with, what we have in this bill, is the The NIST supports the setting of standards, tected to some degree the programs of 25-percent mandatory reduction plus basic research, and of course, technology pro- NOAA and NIST, which includes some the elimination of the ATP program, grams which the Republicans have found very important functions critical to the Manufacturing Extension Program, ideologically objectionable. the safety of the country. The amend- The formula contained in the bill requires a the NOAA Ocean Environmental Pro- ments that we adopted unanimously in gram. These have to be a part of the 25- 25-percent reduction to these programs. The committee and reported out to the percent cut, but they are not sufficient right-hand bar shows how these reductions floor mysteriously disappeared on their to make it all up. After we make all of will play out. way to the reconciliation bill, and First, the bill would target investment pro- these cuts which in effect destroy these grams such as the Advanced Technology Pro- therefore they do not appear, and we technology programs, there is still a want to point some of these things out, gap of $203 million which has to be gram and the Manufacturing Extension Pro- and this chart shows what happened. made up in order to meet the 25-per- gram, which incidentally the House has voted First of all, the programs under our cent requirement. on several occasions to support. jurisdiction were faced with an arbi- Mr. Chairman, I do not want to scare Next, the bill targets certain coastal and trary cut of 25 percent. A considerable people by saying that we will utterly fishery programs and environmental programs number of programs were transferred destroy the Nation’s weather system or which have been carried out by NOAA. to other jurisdictions, and some of anything like that. On the other hand After all is said and done, the formula still them were specifically cut or elimi- I want to rebut the statement that this requires over $200 million in arbitrary reduc- nated, particularly in NIST, where the does no harm to the weather system. tions to ongoing programs which will have to Advanced Technology Program and the We cannot take $203 million, which is come out of weather services within NOAA Manufacturing Extension Program the amount that NOAA will have to ab- and basic research within NIST. were emasculated. sorb in a program which is largely In advance of consideration of this bill Mr. CRAMER. Mr. Chairman, will the weather-related, without doing severe today, I conducted a survey of State Gov- gentleman yield? damage to our existing weather report- ernors to determine how they would cope with Mr. BROWN of California. I yield ing system which is undergoing a the possibility of a diminished level of serv- briefly to the gentleman from Alabama major transition at that time. We will ices, especially for weather and fishery pro- [Mr. CRAMER] for some comments undoubtedly have to close more sta- grams. In particular, I wanted to address the about the subject that he spent a lot of tions and close them more rapidly than issue of how the States would pick up the time on, the weather programs. we would otherwise. slack and supplement any shortfall as a result Mr. CRAMER. Mr. Chairman, I thank This is not what the committee voted of this provision. I would like to include in the the ranking member for yielding to to do when we had this bill before us, record at the appropriate time a sample of the me, and I want to make a point, per- the Commerce Reorganization Act or responses that I have received. I will also in- haps with the gentleman’s help, about dismantling act. We do not think it clude a more detailed analysis of how this our Weather Service programs carried should be in this bill, and we suggest overall budget cap will affect the two agencies. under the umbrella of NOAA, the Na- that this is another good reason to vote When the Chrysler bill was brought before tional Weather Service. no on this reconciliation bill. the Science Committee, an amendment was Two weeks ago in the debate on the Mr. Chairman, I rise in opposition to H.R. offered to delete a similar budgetary provision. omnibus science bill, Mr. Chairman, we 2517 and the process that has prevented This amendment was strongly supported by came to the floor with an issue that re- Members on both sides of the aisle from mak- both sides of the aisle and easily adopted. I lates to the certification of the Weath- ing this a workable reconciliation process. want to acknowledge, however, that there is a er Service offices, and a lot of us from When the Rules Committee met, I offered technical difference in the base text compared both sides of the aisle were very con- two amendments relating to title XVII of the bill to that we deleted in committee. cerned that unless this amendment, which abolishes the Department of Com- Rather than forcing an across-the-board re- the amendment that I offered in the merce. These, in fact, were similar to amend- duction as the original Chrysler bill did, this bill Cramer amendment, passed, that we ments successfully adopted when the Science makes a general reduction. The effect is the could see the offices shut by a bureau- Committee marked up this bill. same, however. Both legislative forms mask crat rather than going through the cer- The first of these would delete the arbitrary the true impact of such budgetary reductions. tification process that the existing law funding cap which, we have found, would Both seek to convey the impression that it is preserved. heavily impact the Government's ability to pro- easy to make cutsÐjust pick a number. The I would ask the ranking member of vide basic weather services for the protection reality is that when authorizing or appropriat- the Committee on Science, if we passed of the public. ing committees look at the substance of these October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10795 programs, such cuts do not come so easily. measure, has contributed to the resurgence of NOAA F.Y. 95 level 1972 (¥55) ...... 1,917 This top down, arbitrary approach to budget American manufacturers. MEP often has been NIST F.Y. 95 level ...... 700 cutting avoids our basic responsibility as an in- the only place that traditional small busi- stitution to conduct oversight and set priorities. nesses, faced with extinction unless they Total ...... 2,617 The details of how the cuts would be imple- learned how to become a just-in-time, high The 75% limitation would allow a total mented are still lacking because of the mag- tech supplier for their traditional customers, spending of 1963. nitude of the changes that would have to be could go for help in making the transition. The resulting reduction of $654 million made. In a recent hearing before the Science MEP also is cost-effective; one independent would, to some extent, be offset by mandated Committee, Dr. Elbert Friday, Director of the review documented $8 of direct benefit to terminations which account for $36 million National Weather Service, testified that such small businesses for every Federal dollar in NOAA and $415 million in NIST. This cuts would force a fundamental restructuring going into the program. It clearly would be would leave $203 million in net reductions of the modernized weather forecasting system penny-wise, pound-foolish to use this bill to that would need to be allocated to the re- we are now more than half way through. override the reasoned judgment about MEP of maining NOAA/NIST programs. The agencies would allocate this on a pro rated basis pro- There is no question that some and perhaps the committees of jurisdiction. many weather offices would have to be portional to the remaining budget require- There are many matters in this bill that de- ments. closed. I am cognizant that the Republican serve far greater attention than has been leadership does not want to hear such talk NOAA 95—1972 less transfers/terminations given them in this process. I hope that my col- equals 1881. and they have branded it as a scare tactic. I leagues will join me in voting against this mis- NIST 95—700 less transfers/terminations believe that we will find that it is the reality. guided bill. I would now like to speak briefly on another equals 285. amendment I offered before the Rules Com- IMPACT OF RECONCILIATION BILL ON SCIENCE Total—2672 less transfers/terminations AGENCIES mittee. That amendment would delete the pro- equals 2166. vision in this bill that repeals the organic legis- The Chrysler bill does three things: (a) it Thus, of the remaining combined budg- lation establishing NIST's Manufacturing Ex- transfers certain functions to other agencies, etary requirements, 87% are related to NOAA and 13% are related to NIST. Applying tension Program. This is a back-door attempt (b) mandates the termination of certain functions, and (c) places a cap of 75% of F.Y. these to the $203 million cut, assume that to kill a program which has received bipartisan 95 spending for the sum of NOAA and NIST NOAA is cut by 177 and assume that NIST is support every time it has come up for a vote programs excluding the transferred pro- cut by 26. this year for authorizations or appropriations. grams. This will result in a NOAA budget of $1,704 The MEP is a proven program which has All program transfers are related to NOAA million and a NIST budget of $259 million. breathed new life into thousands of small busi- and account for $55 million. Thus the ad- The following table shows how this compares nesses around the country, and in no small justed base for the combined total is: to other budgetary actions.

Fiscal year 1996 Fiscal Budget Agency year House Senate re- H.R. 1995 Re- Author- appro- appro- quire- 2517 quest ization pria- pria- ment 1 tion tion

NOAA ...... 1,972 2,094 1,725 1,817 1,993 1,881 1,704 NIST ...... 701 1,023 338 404 351 285 259 Total ...... 2,673 3,117 2,063 2,221 2,344 2,166 1,963 1 The ‘‘Budgetary Requirements’’ is defined in this context as the 1995 spending level minus program transfers and terminations. That is, this is the remaining funding needed for NOAA and NIST from which the general reduction of $203 million must be made.

Thus, NOAA would be cut by 11% below the The Division also receives $118,800 from the eries assistance programs as the valuable F.Y. 95 baseline adjusted for program trans- federal Atlantic Coastal Fisheries Coopera- and cost-effective programs that they are, I fers and 9% below the baseline remaining tive Management Act. No state match is re- would be most happy to do so. after both transfers and terminations are quired. Currently the funding is utilized to Sincerely, subtracted from the base. provide support to the Atlantic States Ma- TIMOTHY R.E. KEENEY, NIST would be cut by 63% below the F.Y. rine Fisheries Council fisheries management Director, 95 baseline and 9% if terminations are sub- process. It allows staff to provide input to Department of Environmental Management. tracted from the base. ASMFC management boards and to collect For the resulting NOAA/NIST conglom- field data in support of the ASMFC process. STATE OF LOUISIANA, DEPARTMENT erate, the spending cap will cut below the Half of the appropriation has been awarded House appropriations level by 11% and the to the Division of Enforcement to supporting OF WILDLIFE AND FISHERIES Senate appropriations level by over 16%. species management plan mandates. Baton Rouge, LA, October 11, 1995. As you know, the ACFCMA gives the Sec- Hon. GEORGE E. BROWN, JR., STATE OF RHODE ISLAND AND PROVI- retary of Commerce the authority, through House of Representative, Committee on Science, DENCE PLANTATIONS, DEPARTMENT the ASMFC, to close fisheries in Atlantic Rayburn House Office Building, Washing- OF ENVIRONMENTAL MANAGEMENT, Coast states if they fail to comply with fish- ton, DC. Providence, RI, October 10, 1995. eries management plans implemented under Rep. GEORGE E. BROWN, JR., DEAR CONGRESSMAN BROWN: This is in re- its authorization. This action would have a sponse to your letter of September 26, 1995 to House of Representatives, devastating impact on the Rhode Island fish- Governor Edwin W. Edwards relative to pro- Washington, DC. ing industry and its ability to participate in posed legislation, HR 1756 by Congressman HON. GEORGE E. BROWN, JR., Thank you for the management process. Our inability to your timely warning with regards to H.R. provide timely fisheries regulations could Dick Chrysler, which intends to dismantle 1756, which would dismantle the Department further jeopardize the fishing industry’s abil- the Department of Commerce. It is our un- of Commerce and terminate or severely re- ity to survive during this era of depressed derstanding that in its current form the bill duce state fisheries and estuary research stock abundance and availability. would transfer many programs within the grant programs. The impacts on Rhode Is- Reduction of the Narragansett Bay Na- National Oceanic and Atmospheric Adminis- land’s programs of such actions would be tional Estuarine Reserve Grant by 25% or tration (NOAA) to other agencies, terminate devastating. $28,000 would require either eliminating the state fisheries grants and promotions pro- Our Division of Fish and Wildlife currently entire monitoring program or the entire edu- grams, terminate basic research programs, receives $126,320 from NOAA, National Ma- cation program, or reducing both by one half and severely reduce the budget for remaining rine Fisheries Service via the Inter-jurisdic- which would effectively be the same as NOAA programs. Our agency strongly sup- tional Fisheries Act P.L. 99–659. Funding elimination of both. ports the National Marine Fisheries Service from this Act is used for support of the A final possible reduction would be to lay (NMFS) and its parent, NOAA, and feel that Rhode Island Marine Fisheries Council off the Reserve’s part-time manager, which these agencies should continue their mission ($37,500) and the Rhode Island Lobster Re- would render the Reserve non-operational unchanged. We have worked closely with the search and Management Program ($88,740). and deprive the monitoring program of his NMFS over the years on a wide variety of is- Loss of funds would require that we termi- substantial volunteer efforts. Any alter- sues and have found this group to be effec- nate two biologists and reallocate funds to native would functionally shut down the Re- cover staff activities which support the Ma- serve. tive in bringing together diverse interests to rine Fisheries Council, our state’s lead fish- If I can be of any assistance to you or your develop mid-ground solutions and create a eries management organization. committee in defending NOAA’s marine fish- fair balance among conflicting positions. H 10796 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Repeal of NMFS’ authority to provide fish- correct, should ask themselves, how first provision would allow private debt eries related grants and substantial reduc- much could we do for health care, how collection companies to collect debts tions in NMFS’ research and management much could we do for other programs, owed to the Internal Revenue Service. capabilities, would severely impeed impor- for science, for example, if we had the While the Ways and Means Committee tant Federal activities including the rebuild- ing of fish stocks, expansion of the economic use of $235 billion that is lost in inter- is working on a taxpayer bill of rights, benefits of the nation’s marine fisheries, and est? this bill allows the IRS to give con- the enhancement of the U.S.’s position in That is why I urge adoption of the fidential tax information to private global trade. From a state’s perspective it Budget Reconciliation Act. bill collectors, who could use all sorts would also severely curtail our research and Mr. SABO. Mr. Chairman, I am of harassment to get the money. management activities for our important re- pleased to yield 5 minutes to the dis- The second provision would require newable marine resources. tinguished gentlewoman from Illinois our constituents who get Federal bene- While we agree with the overall goal of [Mrs. COLLINS]. fits, such as Social Security or veter- eliminating unnecessary programs and in- (Mrs. COLLINS of Illinois asked and ans benefits, to receive their benefits creasing governmental efficiency, we feel was given permission to revise and ex- through electronic funds transfers to a that NOAA and NMFS’ have proven their ef- tend her remarks.) fectiveness and respectively suggest that any Mrs. COLLINS of Illinois. Mr. Chair- bank. Not everybody has a bank ac- reduction or dismembering of these impor- count. Not everybody has a checking tant agencies would not be in our best inter- man, the majority once again bypassed the normal committee process by ask- account. I believe that particularly est. senior citizens and others who are dis- Thanks for the opportunity to comment on ing the Rules Committee to include in this proposed legislation. the reconciliation bill a package of abled ought to be able to have the op- Sincerely, civil service provisions which have tion to choose whether or not they JOE L. HERRING, never been approved by the Govern- want the check to go through an elec- Secretary. ment Reform and Oversight Commit- tronic process. The third provision would allow the b 1730 tee. The majority proposes to make Federal Government to garnish Social Mr. KASICH. Mr. Chairman, I yield 2 changes in the civil service retirement Security checks to collect debts owed minutes to the distinguished gen- system, some of which have not even to the Government, and make deduc- tleman from New Mexico [Mr. SCHIFF]. received the benefit of a hearing. They tions from Social Security checks even Mr. SCHIFF. Mr. Chairman, I thank would delay retiree COLA’s, increase for individuals making just $10,000 a the gentleman yielding time to me. agency and employee contributions year. If we want to improve debt col- Mr. Chairman, I rise in support of the into the retirement fund, and then, in- lection, we shouldn’t focus on people Budget Reconciliation Act. I support it credible as it may seem, establish a who need every nickel just to pay the because this is a true blueprint to commission to study the retirement rent, heat, and grocery bills. reach a balanced budget for the Federal system and report recommendations Putting the debt collection bill on Government. Reaching a balance budg- for reforms, 7 months after the so- the reconciliation bill without commit- et is not going to be easy. There are a called reforms in this bill have already tee consideration is an example of the number of decisions that were made in been made. sloppy, unthinking approach that has the Budget Reconciliation Act with Both the General Accounting Office gone into this terrible reconciliation which I do not agree. I hope they will and the Congressional Research Serv- bill. be changed as this bill goes through ice have said, contrary to what Repub- Mr. KASICH. Mr. Chairman, I yield 3 the system to the other body, and then lican leadership claims that there is no minutes to the distinguished gen- the conference. crisis affecting the solvency of the re- tleman from the great State of Texas Further, I want to acknowledge that tirement system which necessitates some good programs are going to feel a [Mr. SAM JOHNSON], a member of the passage of these reforms to resolve. Committee on Ways and Means. pinch under this budget, but the fact is Therefore, there is absolutely no need that we have to stop deficit spending. Mr. SAM JOHNSON of Texas. Mr. to require agencies and employees to Chairman, for 40 years the Democrats For 25 years in a row our Government pay more into the retirement trust has spent more than it has taken in. have tried to tax this Nation out of fund to make it financially secure. debt. Everyone knows you can’t tax The first result of that is we have a na- Clearly, this is not an attempt at seri- tional debt of almost $5 trillion. That and spend your way out of debt, it’s a ous reform. There is another purpose. failed policy, and it’s time for change. is an immoral legacy to leave to our With tax cuts for the rich being Today, Republicans have a plan not children. packaged into the reconciliation bill in only to balance the budget, but to re- The problem with deficit spending is a second attempt to get them enacted, turn to our families, our workers, our not just in the national debt that will the civil service pension system is once seniors, and our businesses their hard- have to be paid off some day by future again being used by the Republican earned money by enacting much-need- generations. It affects us in today’s leadership as a source of offsetting rev- ed tax relief. budget. The interest on the national enue to pay for them. That’s what this debt, and when the Federal Govern- package is all about. I am opposed it. Democrats must learn that taxes do ment borrows the Federal Government For those rich folks who are not middle nothing for our economy except slow pays interest, like anyone else, any in- class, who earn more than $100,000 a its growth and stifle job creation. Just dividual or business would do, the in- year, that is what this package is last week, in my home State of Texas, terest on the national debt for the last about. I am opposed to the manner in the President finally admitted that the fiscal year that just ended September which it was brought forward. Our Democrat policies of the past have 30 will come in about at about $235 bil- committee’s work should not be done failed, by admitting that his $258 bil- lion. That is the third highest line item by the Rules Committee, but through lion tax increase was a mistake. He in Federal spending today, after Social the normal, open, and deliberative leg- was right. Security and the military, but not by islative process. We must end the Government thirst much. In addition, Mr. Chairman, the Rules for taking America’s tax dollars and The point is that $235 billion is Committee is also expected to include spending it on more Government pro- money that the taxpayers already send the Debt Collection Improvement Act grams, more Government bureaucrats, to Washington, but we throw it out the in the reconciliation bill. While the bill and more Government waste. We must window in the sense that we take the had a number of good features, it also remember that it’s the people and busi- taxpayers’ money, write a check to pay has many important flaws, which we nesses of this country that produce the interest on the national debt, and get Democrats has hoped to resolve when capital, the goods, and the jobs that nothing back in return, because inter- the bill would be marked up in the make this country the most powerful est buys nothing. committee. It now appears that we will economic Nation in the world. I think those that are emphasizing not have that chance. If we keep the Democrat plan of high- the effect of balancing the budget on Let me describe three of the worst er taxes and higher Government spend- various programs, and they may be features of the debt collection bill. The ing we will finally collapse under the October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10797 weight of a tremendous debt. Our chil- Mr. KASICH. Mr. Chairman, I yield 1 For too many years, Congress’ first dren will pay over $187,000 in taxes just minute to the gentleman from Penn- and last solution to every problem was to pay the interest on that debt. sylvania [Mr. WALKER], a member of to raise taxes. I am here to say that That is why it is so important for the the Committee on the Budget. those days are over, and we are here to Senate and the House to pass this bal- Mr. WALKER. Mr. Chairman, I thank bring tax relief to the American peo- anced budget plan. And the President the gentleman for yielding to me. ple, especially to middle-income Amer- should sign it in the best interest of Mr. Chairman, I just want to make icans who have paid the price and seen the American people. Unlike the Presi- the point that the reason why Demo- their taxes go up and up to support big dent’s unbalanced budget, this bill will crats are going to offer a budget on the Government solutions that fail to balance the Nation’s budget by the floor tomorrow that they claim cuts achieve their intended results. Our tax year 2002. the deficit is because they are increas- relief package has two goals. One is tax We must remember history. Every ing taxes again. Sure, we can continue relief to strengthen the American fam- time this body has cut taxes in the to talk about all these things if we are ily. The second is tax relief to create past, we have experienced more willing to increase taxes, but the fact jobs and economic growth for all Amer- growth, created more jobs, and brought is what their budget does is increase icans. more revenue into the Federal Govern- taxes in 1996 for the average taxpayer Our centerpiece is a $500 per child tax ment. by $188, and in 1997, by about $150 more. credit that will mainly benefit lower- Each time we let the American peo- They do it by simply keeping in place and middle-income Americans. Twen- ple keep more of their money for in- what they passed back in 1993 in the ty-seven million families with 51 mil- vestment and savings—we have induced President’s proposal that raises taxes lion children will benefit from this a healthier, more robust economy. out through infinity. What they do is, credit. If you are a family with two That’s a fact. instead of doing what we are trying to children and you make $30,000 a year, Mr. Chairman, Republicans believe in do, cut taxes for the American people, this credit will wipe out more than the American people, not the Federal what they do is increase taxes. They one-half of your income tax liability. It Government. A vote against this budg- continue to increase taxes indefinitely, will give you a 15 percent total tax cut, et is a vote for more debt, more Gov- and that is the reason why they have including payroll taxes. You will get ernment, and more taxes. argued. $1,000 more in your pocket for you to A vote for this balanced budget is a Democrats love taxes. They love to use as you see fit, not for the Govern- vote for a better, a freer Nation, vote increase them, they love to spend ment to use on your behalf. for America’s future. Put your faith in them, and that is exactly what they If you make $50,000, your tax cut with this Nation and vote for this bill. are going to do here. They are going to two children will be 8 percent, includ- Mr. SABO. Mr. Chairman, for accu- increase taxes over the next couple of ing payroll taxes. racy in history, I yield 1 minute and 30 years by about $300 or more on each in- b seconds to my friend, the gentleman dividual taxpayer, and then tell us that 1745 from Texas [Mr. STENHOLM]. we should not cut taxes and try to give As a result of this credit, 2 million Mr. STENHOLM. Mr. Chairman, I those people a break. lower-income families will no longer thank the gentleman for yielding time The fact is that the budget they are pay any income tax. They will be re- to me. going to bring on the floor is a tax in- moved from the income tax rolls. Mr. Chairman, it is important as we crease budget. Mr. Chairman, our bill provides relief make the various statements, and my Mr. SABO. Mr. Chairman, I yield 30 from the marriage penalty; it provides good friend, the gentleman from Texas, seconds to my friend, the gentleman a credit to help families adopt chil- has just made an excellent statement from Utah [Mr. ORTON]. dren; it provides help for those who regarding the political rhetoric to Mr. ORTON. Mr. Chairman, that ar- care for their ailing parents in the lov- which I agree, but when we look back gument we just heard is so ludicrous, ing environment of their own home. We at the actual facts and go back to 1981, to suggest that our budget is increas- provide a new American dream savings there is one thing that he conveniently ing taxes by failing to repeal taxes in account; and yes, with a spousal IRA to leaves out. That is that we increased existence. Under the same argument, go with it for the woman who stays in our national debt $3.9 trillion during the Republican budget is increasing the home, to help families at the most the 10-year period that followed the de- taxes by failing to repeal many of the important moment in their lives, the cisions of 1981. provisions of the 1993 tax increase, first time they purchase a home, or Spending, and this is something we which they do not repeal in their budg- when they need to tap into their sav- have been talking about today, spend- et. I voted against that, just as many ings for medical expenses and for their ing, and spending in the 1993 budget of them voted against that. But to sug- educational needs. All of these provi- agreement, there was one thing about gest that we are increasing taxes by sions will help strengthen the heart the 1993 budget agreement that I would failing to repeal taxes is ludicrous be- and soul of the Nation: The American think most of us on both sides of the yond belief. family. aisle would agree with. That is, when Mr. KASICH. Mr. Chairman, I yield 5 Mr. Chairman, our second goal is to we look at spending. The 1993-based minutes to the very distinguished gen- create an economic climate that in- discretionary spending was $542 billion. tleman from the great State of Texas cludes good jobs for all of our workers. In 1997, it was $553 billion that is a 2- [Mr. ARCHER], chairman of the Com- That is why we include a capital gains percent increase since 1993 assump- mittee on Ways and Means. tax cut that fortifies America’s private tions, baseline. In 1981, the base was Mr. ARCHER. Mr. Chairman, I thank sector job-crating machine. $308 billion. In 1985, 4 years later, $416 the gentleman for yielding time to me. This week I realized two new studies billion, a 35-percent increase. Mr. Chairman, I am privileged to rise indicating that more than 200,000 jobs Mr. Chairman, our point is the Coali- today and join a great debate at a turn- will be created every year as a result of tion budget that we submit is better ing point in this country’s history. the Contract With America capital than, better than the majority’s budg- This debate is not only about balancing gains tax cut. Revenues to the Treas- et. It gets to balance in 2002. We do not the budget to save our children. The ury will be increased, and GDP will in- quarrel about the spending. We agree. debate is about ushering out the era of crease by 1.7 percent. Mr. Chairman, However, we say do the spending first. tax and spend and beginning a new era cutting capital gains taxes is a winner Let us not repeat the mistakes of 1981, of smaller Government, less taxes, and for every American. We must also re- when we did the tax cuts first and the less spending. member that 59 percent of the returns deficit exploded. Let us do the spending Mr. Chairman, when this bill is that declare capital gains are with cuts, and do not be as critical of the passed, the years of tax and spend will Americans whose income is $50,000 or 1993 budget as many of the people are if be buried on the ash heap of an unsuc- less. they are concerned about spending, be- cessful history, and a new, more pros- As we move ahead to balance the cause it has done much better than we perous era marked by economic pros- budget, it is appropriate that the mid- were able to do in the early 1980’s. perity for all Americans will begin. dle-income taxpayers of this country, H 10798 CONGRESSIONAL RECORD — HOUSE October 25, 1995 who have worked so hard and paid so Indeed, on the floor of this House, by and housing combined. Shouldering much, receive their share of the divi- a 310 to 115 vote, this House supported, heavy burdensome taxes is no way for dend that a balanced budget brings. with the majority of Democrats, a ma- an American family to achieve the This is not our balanced budget bill, jority of Republicans and a majority of American dream. We want to make it Mr. Chairman. This balanced budget the new Members, supported keeping easier. We want to keep these dollars belongs to the people of the United the EDA. in the pockets of the American citi- States, and it is high time that they Members know that the EDA works. zens. get the tax relief they so rightfully de- In its 30-year history, EDA has created Let us talk about some of the tax serve. or retained 2.8 million jobs, invested cuts that we believe make our bill Ms. SLAUGHTER. Mr. Chairman, I $15.6 billion in our distressed commu- unique that we are really getting done yield 3 minutes to the gentleman from nities, and generated $3 of private in- for the American people. West Virginia [Mr. WISE]. vestment for every EDA dollar spent. First of all, a $500-per-child tax cred- Mr. WISE. Mr. Chairman, I thank the Just recently I was at a ground- it. This is the centerpiece of our efforts gentlewoman for yielding me this time. breaking where I calculated that for to give American families a little bit of Mr. Chairman, it was good to hear the $2 million to $3 million of EDA a breakthrough tax relief, $500 for each the distinguished chairman of the Com- funds that went into a water system child under age 18. mittee on Ways and Means. The only that leveraged $130 million of private The current tax systems penalized problem is that 85 percent of the people investment, the Federal taxpayer families with children because it does in West Virginia, those earning under would get back every penny that was not properly reflect the very expensive $50,000 a year, will see significant bene- invested in a 3.5-year period, and the cost of rearing children. According to fit cuts, program cuts like student result would be 800 new jobs. That is the Census Bureau data, the cost of loans and other programs, so that 1.5 investment. That is growth, and that is raising a child averages more than percent, those earning over $100,000 a how you really get about balancing the $5,000 per year. By allowing families to year, can get $2,400 back in their enve- budget. keep a little bit more of what they lope, which is not a very good deal by Mr. Chairman, I urge Members to earn, the family tax credit increases any means. help me strip this EDA-killer from this the resources available to parents to Mr. Chairman, I want to talk about bill. properly raise their children. the Economic Development Adminis- Mr. KASHICH. Mr. Chairman, I yield Second, the American dream savings tration, and particularly, what the Ka- 3 minutes to the gentlewoman from account. Mr. Chairman, the American sich substitute does to that. Because Washington [Ms. DUNN], a very distin- dream savings account is a unique, in- what would happen with the EDA, it guished member of the Committee on novative use of the IRA concept to would be transferred to the Small Busi- Ways and Means. stimulate additional savings. The new ness Administration where it would be Ms. DUNN of Washington. Mr. Chair- proposal allows distributions to be a block grant program administered by man, I thank the gentleman for yield- made penalty-free and tax-free for 25 employees. ing time to me. worthwhile purposes like first-time Now, conversely, the bipartisan Com- Mr. Chairman, I have been listening home purchase, college or educational mittee on Transportation and Infra- to debate on this reconciliation bill expenses, and medical expenses. structure-reported EDA bill provides that we will be voting on here in the Lastly, the sponsal IRA. This permits meaningful reform for the same House tomorrow, and I am astounded $2,000 for the stay-at-home, just as a amount of money to the existing EDA at the lack of understanding that the working spouse. I urge all of my col- program without jeopardizing the other side continues to give to the idea leagues to support reconciliation. local, State, and Federal partnership of cutting taxes for American citizens. Ms. SLAUGHTER. Mr. Chairman, I critical to building distressed commu- They still are telling us that cutting yield 21⁄2 minutes to the gentleman nities. taxes is a dirty word. Mr. Chairman, I from Illinois [Mr. GUTIERREZ], a mem- Our bill would launch the Nation’s would like to know, what is so wrong ber of the Committee on Veterans’ Af- economic development programs on a with leaving money in the pockets of fairs. new effort. It would remove much of the American citizens? Mr. GUTIERREZ. Mr. Chairman, I the bureaucracy. It would remove ar- Let us take a look at what we are hear my friends on the other side of the chaic eligibility requirements. Gone really talking about here in the Budget aisle say that they are making history. would be the time-consuming and cum- Reconciliation Act. Twenty-five per- I see them patting each other on the bersome approval process. This is not cent of the tax cuts that we are talking back for devising a budget scam that pie in the sky. It has been reported about are going to businesses, espe- protects the wealth of the powerful and from the Committee on Transportation cially to small business. Seventy-five the privileged. I hear them say that and Infrastructure by a unanimous percent of the tax cuts focus specifi- they are doing this because it takes a vote, and yet the Kasich substitute cally on building and strengthening lot of courage on their part. would gut the EDA. and restoring the American family. We Well, I would like to ask them to put This bill saves every penny that the do not just give tax cuts to the rich. their own self-congratulations on hold Kasich substitute saves. It authorizes, We give tax cuts to everybody, to indi- for a moment and to think about the as the Kasich bill does, EDA programs viduals, to families, rich, poor, middle people who truly made history, who at $340 million per year, saving $1.5 bil- class. That is the strength of this plan. truly protected our Nation, and those lion over 5 years. It has, as I men- We give tax cuts to all Americans. who truly demonstrated courage. Who tioned, both unanimous support, and A couple of facts, Mr. Chairman. In has the answer to that question? Amer- certainly the bipartisan support of the 1950, the average American family with ica’s veterans. gentleman from Pennsylvania [Mr. children paid 2 percent of it income in With all of the grand rhetoric you SHUSTER], the gentleman from Mary- taxes to the Federal Government. hear, the Republicans would have you land [Mr. GILCHREST], former ranking Today, 45 years later, that very same believe that they would never harm the member of the subcommittee from family pays 24.5 percent, and adding men and women who have served our California, Mr. Mineta, myself as rank- State and local taxes, the total per- Nation. Well, let us listen to some of ing member of the subcommittee, and centage adds up to 37.6 percent percent the facts instead. Let us start with the the Republican freshman class presi- of their income in taxes to all levels of cuts proposed over the next 7 years to dent. government. That means, Mr. Chair- the VA. This committee has repeatedly sup- man, in families where both of the par- One result, increased copayments for ported the EDA, despite what is in the ents work, a very common situation veterans who need a prescription. It Kasich substitute. It was unanimously today, two-thirds of the wife’s earnings might sound like a good example of reported the first time and readopted go to pay increased Federal taxes. self-sacrifice to some. Well, Members of when the Commerce Department Dis- In fact, Mr. Chairman, the average this House have that luxury. We are mantling Act included in the Kasich American family literally spends more not living on an income of $12,000 or substitute was before the committee. on total taxes than on food, clothing, $10,000 a year, but many veterans do. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10799 Members of this House talk about on our pledge to the American people these services, parents may be forced to give how hard a job this is to be a Member to replace the failed welfare system. up their jobs or seek institutional placement for of the U.S. Congress. Well, most of us We promised to bring real welfare re- children. The cuts would also deny as many do not have to sacrifice our health for form to the House floor for a vote, and as 44,070 disabled children in Texas SSI cash the sake of serving our country, but we kept our word. We pledged to cut benefits in 2002. many veterans did sacrifice their programs, to cut redtape, and to slow Republican cuts are terribly short-sighted. health. Yet this House will force the exploding welfare spending, and we did Cutting the debt today, Republican argue, will VA to care for 1 million fewer veterans just that. save children from paying unbearable taxes in by the year 2002. By the year 2002, it is In the next few weeks, we will send a the future. But this only benefits those children estimated that over 175,000 veterans bill to President Clinton that will for- who grow up to be job holders and taxpayers. will lose coverage under Medicaid, one- ever change welfare from a way of life Budget cuts would fall heavily on poor and third of whom are severely disabled, into a way to help America’s poor get lower-middle class children, leaving them less with crippling diseases or mental ill- work and free themselves from govern- able to hold jobs in the years to come. Hun- nesses. ment handouts. gry, malnourished, nonimmunized children About 20,000 veterans a year depend Mr. Chairman, everyone agrees that cannot be expected to concentrate in school. on Medicaid, not the VA, not Medicare, reforming welfare is necessary. Can- These children will prove less able to compete but Medicaid, for their nursing home didates in both parties have cam- for good jobs with children from affluent fami- care. What do they have to look for- paigned on the need to reform welfare lies. ward to during the next 7 years? The and have won a lot of votes talking For example, Republican cuts would deny possibility that their spouses will have about change. But there is a big dif- Head Start to 12,512 children in Texas and to give up their homes in order to re- ference in this town between talk and 180,000 children nationwide in 2002. The Re- tain eligibility for long-term care. The action. threat that a widow’s VA pension gets publican budget repeals the Vaccines for Chil- To Republicans, the options have dren Program, putting at risk at least $1.5 bil- counted against her in determining her been clear: Whether to save the failed edibility for Medicare. The likelihood lion over 7 years that would otherwise provide welfare system or save the children it vaccinations for children in Texas and across that in States like California, Florida, traps in poverty forever. We chose to New York, and Illinois, thousands of the Nation. The Republicans would cut food save the children. That is why Mem- stamp benefits for families with children in veterans will have no alternatives for bers who want to reform the failed wel- health care. Texas by $3,107 over 7 years. These cuts fare system will vote for this reconcili- would jeopardize child nutrition programs on Let us keep in mind that just a few ation bill, because they know it is short years ago, one State, Tennessee, which 2,743 children in Texas depend. The right for our children and it is particu- House Republican budget block grants funding proposed denying health care to veter- larly right for our children’s future. ans. for the school lunch and WIC Program. Na- More importantly, it is not the job of b 1800 tionally, their budget reduces funding for child nutrition programs by more than $10 billion the States to take care of this issue. Ms. SLAUGHTER. Mr. Chairman, I over 7 years and 11 percent in 2002, com- When I speak to veterans back in Chi- yield such time as she may consume to pared with current law. cago, they did not fight for the great the gentlewoman from Texas [Ms. The Republican cuts in educational pro- State of Illinois, they fought for our JACKSON-LEE]. Nation, our country. Veterans in the (Ms. JACKSON-LEE asked and was grams would have a devastating, long term ef- district of the gentleman from Ohio given permission to revise and extend fect on our Nation's youth. For example, Re- [Mr. KASICH], they did not fight for her remarks.) publicans would cut the Safe and Drug Free Ohio, they fought for our country, the Ms. JACKSON-LEE. Mr. Chairman, I Schools Program, which 1,043 out of 1,053 United States of America. rise to oppose the Budget Reconcili- school districts in Texas use to keep crime, vi- If you are a Republican and you have ation Act due to the fact that it op- olence, and drugs away from their children, not found a reason to oppose this budg- poses the dreams and aspirations of all schools, and communities. They would elimi- et, please make sure you have thought Americans and wrecks health care for nate Goals 2000, denying improved teaching this through. This budget is all Americans. and learning for as many as 413,4000, deny- antiveteran. Your tax cuts for million- Mr. Chairman, I spoke last night about the ing improved teaching and learning for as aires are being paid for by millions of devastation Republican budget cuts would in- many as 413,4000 school children in Texas in veterans. Instead of veterans’ health, flict on children throughout the United States. 1996, and 949,800 children in 2002. And they you have chosen to protect someone Tonight, I rise to speak about the impact these would eliminate both the AmeriCorps National else’s wealth. It is wrong. Vote against cuts would have on children in my home State Service Program, denying 3,171 young people this proposal. in Texas the opportunity to serve their commu- Mr. KASICH. Mr. Chairman, I yield 3 of Texas. The Republican plan to balance the budget nities in 1996; and the summer jobs program minutes to the distinguished gen- for 42,491 youths in Texas in 1996 and tleman from Florida [Mr. SHAW], one of would eliminate Medicaid coverage for as many as 206,641 children in Texas and 4.4 297,437 youths over 7 years. the leading experts in the Nation on The Republicans would scale back environ- welfare reform. million children nationwide in 2002. The Re- mental protections which keep our children Mr. SHAW. Mr. Chairman, I thank publican budget cuts Medicaid funding to healthy and strong. The Republican budget the gentleman for yielding time to me. Texas by $7 billion over 7 years and by 20 Mr. Chairman, after expanding the percent in 2002 alone. would allow sewage to flow into waters where welfare state for 60 years, President Currently, 20 percent of children in Texas Texan children live and play. Texas will lose Clinton and the Democrat Party failed rely on Medicaid for their basic health needs. $16.7 million used to treat water pollution and to deliver on the Clinton campaign Medicaid pays for immunizations, regular protect public health. promise to end welfare as we know it. checkups, and intensive care in case of emer- The Republican budget halts the President's Yet, while every lever of power was gencies for about 1,407,000 children in Texas. effort to protect the health and safety of chil- controlled by the Democrats, no one Even if Texas could absorb half of the cuts by dren living near the 32 oil refineries in Texas. acted to save the millions of children reducing services and provider payments, it These refineries emitted more than that today remain trapped on welfare would still have to eliminate coverage for 27,141,998 pounds of toxic air pollution in as we know it. 360,097 people, including 206,641 children in 1993, putting children in surrounding commu- In the Democratic Congress, no Dem- 2002. nities at risk of serious health problems includ- ocrat welfare reform bill was approved Many of the children in Texas who would be ing cancer and respiratory illnesses such as in committee, none was advanced to denied coverage are disabled. Medicaid pro- asthma. the House and Senate floor, and none vides valuable services for many disabled chil- The Republican budget cuts spending on came to the President’s desk for signa- dren, often making the difference that allows toxic waste cleanups by 36 percent. There are ture. Republican and bipartisan efforts them to live at home with their parents. Medic- at least 4 toxic waste sites in Texas. The Re- to reform welfare were stymied. aid provides for items such as wheelchairs, publican cuts will stop, or slow the clean-up, of In contrast, House Republicans today communication devices, in-home therapy, res- sites near Jasper, Texarkana, Arlington, and are taking another huge step to deliver pite care and home modifications. Without my district of Houston. H 10800 CONGRESSIONAL RECORD — HOUSE October 25, 1995 The Republican's proposed $500-a-child tax to talk about representing the Com- expensing rights, restore the home of- credit would do little to help children in low-in- mittee on the Judiciary. That is, why fice deduction, and make it easier for come households. Families that have no Fed- we ought to call this them to provide pension plans for their eral income tax liability after other exemptions WRECKonciliation with a ‘‘W.’’ employees. The tax provisions in this and deductions would not be eligible for re- Let me tell Members why. We are bill will help middle-class families and funds. In Texas, 2,466,000 children in working doing something to our economy in put in place the only solution through families would have their taxes raised by an this bill that I find unconscionable. We which we can guarantee our seniors, average of $430 in 2002. Families with two or are putting a tax on innovation. Inno- ourselves, and our children freedom more children in Texas will face an average vation is as American as apple pie. from the fear of the catastrophic costs tax increase of $500. What we have done, there was an of long-term care. Too many children in my district of Houston agreement many years ago that we This bill expands people’s oppor- are in poverty, and too many are at risk of have really been abiding by and that tunity to gain the education they need poverty. I find it hard to believe that this Con- was the patent and trademark office to increase their economic power. We gress would further cut the safety net for these ought to run on its own fees, that the extend the right of employers to sub- children. But that is exactly what the Repub- fees that come in from the inventors sidize the education of their employ- lican budget would do. should pay for the services and that is ees. We create the right to develop Cuts in the safety net would deny 30,540 it. American dream saving accounts with children in Texas child care assistance in Well, guess what we are doing today? its flexible rules allowing the use of 2002 and would cut foster care and adoption WRECKonciliation is tapping into these savings for education, tax-free. for vulnerable Texas children by $359.5 million those fees and pulling them out of the And we create a new research and de- over 7 years. The House welfare bill would patent and trademark office. What that velopment tax credit that will help erode the safety net further, cutting child pro- means is obviously the fees are either start-up companies, collaborative re- tection for abused and neglected children in going to go up or the service is going to search efforts, and old-line defense Texas by 24 percent in 2002. The Republican go down. companies create the products of the budget eliminates $29.1 million that helps low- I happen to think that innovation is future. These tax provisions are pro- income familiesÐand 22,325 childrenÐin the basis of the growth of this econ- education, pro-technology, pro-eco- Texas with their home heating and cooling omy. If we look at the Japanese, they nomic growth, pro-family, pro-health bills, and forces families of 204,700 children in spend $1,500 for patents and they do not care reform. Texas to pay more rent. The budget would have as many as we do. We now have a These tax provisions are just as es- also eliminate protection for 4,744 children in fee of $7,500. Heaven knows what it will sential to the well-being of the Nation Texas from drugs and drug-related crimes in be when we get done with over the next 7 years as the specific public housing and deny 5,092 children the WRECKonciliation because every little budget provisions of our proposals. To- opportunity to move from public housing to inventor is going to have to pay more gether they plan a path for our Nation renting their own home. Finally, the Repub- or it is going to take them much longer to reach a balanced budget by the year lican budget denies assistance to 1,143 home- to get that essential protection out 2002 with a healthy economy, strong less children in Texas. The budget cuts home- there that they need, and both are families and enlightened health and less assistance by 40 percent in 1996, cutting wrong. education policy. funding for the homeless in Texas by $30.3 This is a hidden fee that those of us Ms. SLAUGHTER. Mr. Chairman, I million in 1996. who sit on Judiciary on the Sub- yield 2 minutes to the gentleman from Mr. Chairman, I stand here today in dis- committee on Courts and Intellectual Texas [Mr. BENTSEN]. belief. Disbelief over the fact that Members of Property on both sides of the aisle real- (Mr. BENTSEN asked and was given this Congress would deny assistance to home- ly resent. This is one of the many permission to revise and extend his re- less children, medical care to the disabled, things that are in there. marks.) and food to the hungry child. How can they I also resent the fact that people on Mr. BENTSEN. Mr. Chairman, I rise look their children in the eyes, knowing what the other side of the aisle stand up and in opposition to the Republican budget they are going to do to children like them say, we do not know what is in it. Does bill. We have heard a lot about the con- across the Nation? I fear for the future and I the other side of the aisle know this is sequences of the $270 billion in Medi- can only hope that my Republican colleagues in it? Do you know what you are doing care cuts, but the impact on our States will come to their senses before it is too late here? Do you really want to choke off and communities may be even more se- for the children involved. Let there be no un- innovation and patents and the effi- vere because of the $182 billion cuts in certainty: the damage they would inflict upon cient service that we have been seeing? Medicaid. the children of this Nation will last a lifetime Is it really fair to raise their fees to Our Nation already faces the chal- and its legacy will last even longer. Therefore, pay for the debt that came out of gen- lenge of providing health care to 40 I oppose the Budget Reconciliation Act and eral revenues? I do not think so. I hope million Americans who are uninsured. will encourage the President to veto it. that we talk about this some more. This Congress should be working on Ms. SLAUGHTER. Mr. Chairman, I Mr. KOLBE. Mr. Chairman, I yield 2 that problem. Instead, we are voting on yield 21⁄2 minutes to the gentlewoman minutes to the gentlewoman from Con- a repeal of Medicaid that would add 8.8 from Colorado [Mrs. SCHROEDER], a necticut [Mrs. JOHNSON], a very distin- million people to the list of the unin- member of the Committee on the Judi- guished member of the Committee on sured. ciary. Ways and Means, an individual who has Texas will be one of the hardest hit Mrs. SCHROEDER. Mr. Chairman, I been very instrumental in drafting States, and this bill makes matters thank the gentlewoman for yielding me many provisions of the Medicare and worse because of a funding formula the time. Medicaid part of this legislation. that does not adequately account for Let me start off by just answering Mrs. JOHNSON of Connecticut. Mr. population growth and poverty levels. one of the charges made on the other Chairman, some of my colleagues be- Altogether, Texas would lose $11 billion side and that was that we Democrats lieve we should be discussing here over the next 7 years under this Medic- did not know what was in here and that today merely a budget bill. I believe aid repeal, a 29 percent reduction in we really were all pro-taxes. that would be inadequate to meet to- 2002 alone. Even if Texas could absorb Let me just point out this chart that day’s demands or our Nation’s needs half the cuts by reducing services, it I borrowed from someone else—68.4 per- over the next 7 years. I am proud that would still have to eliminate coverage cent of middle-income families are we are offering here today a budget for 687,000 people by the year 2002. going to get a tax increase if that bill plan that includes numerous tax re- No formula will correct the inequity passes, or they are going to pay the forms that together will help our com- of the repeal of the individual entitle- same. And 64.3 percent of the wealthy panies compete in an intensely com- ment of Medicaid. It is mathematically people are going to get a tax cut. petitive international market and so impossible. Yes, we know what is in it. And that assure the millions of jobs these com- This Republican plan would force is why we are upset. But let me go to panies provide. It will help small com- Texas to eliminate coverage for about my next chart which is what I planned, panies grow by providing them better 43,000 elderly people needing long-term October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10801 care. Without Medicaid, families of the percent of the tax returns reporting under this plan. Twenty-eight years elderly and disabled could not afford capital gains were filed by taxpayers ago, Mr. Chairman, that would have nursing home care that costs an aver- with adjusted gross incomes of less been my three children. age of $38,000 a year. than $75,000, 77 percent; and 60 percent Mr. KOLBE. Mr. Chairman, I yield 3 The Republican Medicaid repeal had adjusted gross incomes of less than minutes to the gentleman from Mis- would force Texas to eliminate cov- $50,000, hardly the rich in America. souri [Mr. HANCOCK]. erage for 394,000 children in the year But even more impressive than any Mr. HANCOCK. I thank the gen- 2002. Currently, 20 percent of children of these statistics was a young man in tleman from Arizona for yielding me in Texas rely on Medicaid for their my district. When I talked to a high the time. basic health needs, including immuni- school assembly, a 17-year-old young Mr. Chairman, for 40 years, the Re- zations, regular checkups and intensive man from the least affluent part of my publicans in the House have been try- care in case of emergencies. They get district came up to me afterward, and ing to demonstrate how they differ top-quality care at such facilities as he said, ‘‘Ramstad, I liked what you from Democrats on the role of govern- Hermann Hospital and Texas Children’s said about capital gains.’’ ment in the lives of the American peo- Hospital at the Texas Medical Center I was not accustomed to such feed- ple. The true difference between Re- in my district. But this guarantee of back from 17-year-old high school stu- publicans and the Democrats is that care would be gone under the Repub- dents. I asked him, ‘‘Young man, do the Republicans want less government lican plan. you have any capital gains?’’ He looked and for Americans to keep what they Texas could avoid these difficulties back at me and his eyes got about this earn. Democrats want more govern- but only by increasing its own spend- big and he said, ‘‘No, not now, ment and as much tax money as they ing on Medicaid by 48 percent by rais- Ramstad, but someday I hope to.’’ can get so they can run a social engi- ing taxes and cutting other critical Mr. Chairman, that is the kind of in- neering experiment from Washington, programs such as education. centive we have to restore to the Tax DC. Hospitals in my district would also Code in this country. Now, for the first time in many, many years, we have the opportunity be hard hit by this Medicaid repeal. All Americans, Mr. Chairman, will to give back to the American people The Harris County Hospital District, benefit from this bill. Let us keep faith some of the hard-earned dollars they the Nation’s sixth largest, will lose be- with the American people. Let us bal- have been sending to the bureaucrats tween $350 million and $422 million ance the Federal budget. Let us pass in Washington. That is exactly what over the next 7 years. Hermann Hos- budget reconciliation because the tax- the tax cuts in this reconciliation bill pital will lose $112 million, and Texas payers of America deserve nothing less. does, give something back to the tax- Children’s Hospital will lose $100 mil- Ms. SLAUGHTER. Mr. Chairman, I payers so that they can decide for lion. yield 2 minutes to the gentlewoman themselves how best to spend and in- This plan is wrong. It is wrong to cut from California [Ms. WOOLSEY]. vest their hard-earned dollars. this plan to pay to tax cuts for the Ms. WOOLSEY. I thank the gentle- The Democrats are not going to rich. woman from New York for yielding me agree with me, but the vast majority of Mr. KOLBE. Mr. Chairman, I yield 2 the time. the American people agree that our minutes to the gentleman from Min- Mr. Chairman, I am going to spend Government taxes too much and spends nesota [Mr. RAMSTAD], another distin- my brief time in talking about an area too much. guished member of the Committee on of this immense and devastating bill Ways and Means. that I know firsthand, Medicaid. My b 1815 Mr. RAMSTAD. Mr. Chairman, I ideas about Medicaid did not come Even the President recently said, thank the gentleman for yielding me from theory or books. I know it. I lived after he pushed through the largest tax the time. it. increase in history, it was too much. Mr. Chairman, President Kennedy Twenty-eight years ago, I went from Now, with this bill, we have the chance said it best back in 1961. ‘‘Our true being a married woman with complete to help the President by rolling back choice is not between tax reductions on health care coverage for my children to two-thirds of the tax revenues and the the one hand and the avoidance of being a single mother with three small tax increase he started and started to large Federal deficits on the other. It is children receiving no child support and put through on the American people in clear that an economy hampered by re- working at a job that initially provided 1993, with the largest tax increase in strictive tax rates will never produce no health care coverage for my three history. enough revenues to balance the budget, kids. Overnight, a simple checkup be- The main thing wrong with this bill just as it will never produce enough came an impossible luxury in our is we should be rolling back President jobs or profits.’’ household. I will never, never forget Clinton’s 1993 tax increase in its en- Mr. Chairman, President Kennedy what it was like, Mr. Chairman, to lie tirety. Unlike the President, we are was right. The bill before us today is awake at night worried to death that keeping our word by providing tax cuts about two things: one, eliminating the one of my children would get sick. for all Americans while the Democrats deficit and balancing the budget for Thankfully, I was able to turn to will proclaim their worn-out class war- our children and grandchildren; and, Medicaid and other forms of public as- fare chant that these are tax cuts for two, providing jobs and opportunities sistance to add to my salary so I could the rich. The truth is the biggest indi- for all Americans with the tax stimu- provide my children with the health vidual tax income tax cuts as a per- lus provisions of the bill. care, child care, and food they needed. centage of taxes paid go to taxpayers Economist after economist came to Mr. Chairman, that safety net is earning $30,000 to $75,000 annually. our Committee on Ways and Means tes- what helped my family get back on So when you hear the Democrats tifying about job creation. One econo- their feet. But I will never, not for 1 whine and complain about our tax cut mist testified 1.4 million new jobs will minute, think that just because my and budget balancing bill, remember be created over the next 5 years from family made it, so can the millions of they are really opposed to our efforts the capital gains tax cut. As he put it, families who are in similar or worse to shift power from the Federal Gov- the capital gains tax reductions will situations than we were today. ernment to individual Americans. stimulate economic activity, increase That is why I am so outraged by The American people should be proud jobs, capital spending and capital for- Speaker GINGRICH’s assault on Medic- of what we are about to do. mation, improve national savings, in- aid. The Speaker and his allies are tak- Ms. SLAUGHTER. Mr. Chairman, I crease entrepreneurship and raise eco- ing health care from our children. In yield 2 minutes to the gentleman from nomic output. fact, they are cutting $182 billion to California [Mr. TORRES]. Mr. Chairman, we are hearing a lot help pay for $245 billion in tax breaks Mr. TORRES. Mr. Chairman, I am re- from the other side about capital gains to the wealthiest special interests. minded of the words of the late Justice tax cuts being a tax break for the rich. In my home State of California Hugo Black: ‘‘Great nations, like great Let us talk about the facts. An IRS alone, almost 470,000 children on Medic- men, should keep their word.’’ A provi- analysis of 1993 tax returns found 77 aid will lose their health care coverage sion in the bill before us today makes H 10802 CONGRESSIONAL RECORD — HOUSE October 25, 1995 a mockery of this noble guiding prin- Indian nations. But most Indian people Ms. SLAUGHTER. Mr. Chairman, I ciple. and children in the United States still yield 2 minutes to the gentleman from The proposed tax on tribal gaming live below the poverty line. This Con- Massachusetts [Mr. OLVER]. income breaks innumerable promises. gress has recommended serious reduc- Mr. OLVER. Mr. Chairman, I thank It violates U.S. treaty obligations, ig- tions in appropriations for Federal pro- the gentlewoman for yielding me this nores the U.S. Constitution, cir- grams for Indians. Imposing an illegal, time. cumvents the new Republican rules of reckless, and suffocating tax on top of Mr. Chairman, the budget debate House procedure—and, it flies in the these cuts is cruel. It is also self-de- today is or really should be about peo- face of common sense. feating. We are obliged to treat tribes ple, and the whole purpose of govern- Indian tribes are sovereign entities with due respect. We are obliged to ment should be to help people. with the power to govern themselves. meet our treaty and trust responsibil- So what does the Republican rec- They have the right to engage in and ities. We ought to be helping tribes onciliation bill do to people? First, regulate their own economic activity, that help themselves. We must keep children get hurt. Three million chil- and as such, are immune from Federal our promises. My colleagues, reject dren will lose their health care cov- income tax. From the first days of this this bogus tax. erage through Medicaid, 2 million chil- country’s existence, Congress has rec- Mr. KOLBE. Mr. Chairman, I yield 2 dren will have their school lunches cut, ognized the sovereign status of Indian minutes to the distinguished gen- 1 million babies and their mothers lose tribes. The U.S. Constitution recog- tleman from Missouri [Mr. TALENT]. Healthy Start, a prenatal health care, nizes tribal sovereignty. And the U.S. Mr. TALENT. Mr. Chairman, I thank 700,000 disabled children will be denied Government, in over 500 treaties, has the gentleman for yielding me this SSI benefits, 180,000 preschool children recognized Indian tribes as sovereign time. will not get Head Start. That is for entities. Mr. Chairman, we have heard a lot of starters. Teenagers and students trying How can the Ways and Means Com- comments tonight about how we can- to get an education so they can be part mittee presume to overturn 200 years not balance the budget while providing of the American dream are hurt, too. of Federal law and policy by treating tax relief to the American people. You Four million high school and college- tribes, not as nations, but as corpora- know, I think we cannot balance the age Americans will lose summer jobs; tions? budget without providing tax relief to 50,000 young people will lose the oppor- Further, how dare they do this with- the American people, because it is not tunity to earn money for college out a single hearing, a single notice, or just balancing the budget, it is through AmeriCorp’s national service. a single opportunity for public, admin- reorienting the way the Federal Gov- Two million students will be denied istration, legislative, or tribal com- ernment relates to the rest of Amer- Pell grants, and about 30 million stu- ment? This is not due process. This is ican society, lightening the burden of dents will have their college loans cut. not the democratic way. In fact, it’s Government on people. Finally, working families get hurt as not even the Republican way. The new As we disempower the Federal Gov- well. Fourteen million working fami- majority promised not to institute new ernment to some extent, we have got lies will have their taxes raised di- taxes without careful study. They even to reempower the private institutions rectly, all of those families having passed a rule requiring a of society, families, so that they can $25,000 a year or less of income, many supermajority, three-fifths vote, to raise their children, individuals, so of them working at minimum wage, raise taxes. Is this new rule to be aban- that they can invest in their own fu- many of them trying to raise their doned so soon? Mr. Chairman, this ture, small businesses, so that they can children on those kinds of incomes. body’s historical memory seems to be create jobs. But we hear tonight, well, And a real sleeper, an estimated 13 mil- getting shorter by the day. we cannot, because that means we are lion workers will have their pensions There is another reason Republicans going to have to cut the Federal budg- raided by their employers, money that should reject this proposed new tax. et. they paid out of their salaries to pro- The provision will defeat the ability of Mr. Chairman, we are not cutting the vide for their retirement. tribes to become economically self-suf- Federal budget. It is growing under our So why are we then voting on such ficient. Tribal gaming presents a sin- plan over 7 years at 2.8 percent a year, extreme and vicious legislation? Well, gularly viable opportunity to eliminate at the rate of inflation. What people basically because all of those cuts the horrendous poverty on Indian are saying who do not want the tax re- taken together, all of them taken to- lands. All profits from tribal gaming lief is we have to deny tax relief to the gether allow the Republicans to pro- must go to meet the needs of tribal American people so that the Federal vide more than $100 billion of tax cuts people. In other words, revenues can Government can grow faster than the for fewer than 5 percent of Americans, only be used for governmental or chari- rate of inflation over the next 7 years, those people making more than $100,000 table purposes, such as: education, as if the American people were per year. That is who the Republicans housing, health care, police, fire de- undertaxed. care about. partments, child care, roadbuilding, Mr. Chairman, in 1952, the average Well, the distinguished chairman of and sanitation. Greater tribal self-suf- American family paid 2.5 percent of its the Committee on Ways and Means, the ficiency means less cost to the Federal income in Federal taxes of all kinds. gentleman from Texas [Mr. ARCHER], Government. Indian gaming represents That same average family today pays said earlier 59 percent of the people an opportunity to get tribal members 25 percent, or 10 times as much, of its who report capital gains have income off of welfare rolls. The proposed Re- income in Federal taxes, and people are under $50,000. What he did not bother to publican tax is just plain bad econom- saying they do not need tax relief so say was that that almost two-thirds of ics. the Federal Government can grow fast- all Americans who are in families Let me take this chance to correct a er than the rate of inflation. whose incomes are less than $50,000 per myth. The economic success of the If people paid taxes at 1970 levels, year, that they get less than 10 percent Pequot Tribe’s gaming operations in they would have $4,000; the average of all the capital gains. That is typical Connecticut is the exception, not the family earning in the $40,000 range of this bill. That is who the Repub- rule. The perception that all Indians would have $4,000 a year more in dis- licans care about. are gaining great personal wealth from posable income. Mr. KOLBE. Mr. Chairman, I yield 2 gaming could not be further from the Mr. Chairman, the reconciliation bill minutes to the very distinguished gen- truth. In fact, across the entire coun- which is before the House today is a tleman from Michigan [Mr. CAMP]. try, only one other tribe besides the good bill. It balances the budget in 7 (Mr. CAMP asked and was given per- Pequots are paying significant per cap- years. It is the least that we ought to mission to revise and extend his re- ita payments to their members. These do, and we need tax relief for the Amer- marks.) members already pay Federal income ican people so that they can do what Mr. CAMP. Mr. Chairman, when the tax on every cent distributed. they do so well for themselves, for earned income tax credit was enacted To a degree, gaming has helped alle- their families, for their communities, in 1975, its concept was to help families viate the long-term problems faced by and for this country. move from welfare to the work force by October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10803 increasing their after-tax earnings and country, and that is a shame, and it is b 1830 providing relief from the burden of tragic. It is embarrassing for the Con- We could not even tear ourselves payroll taxes. gress to do that to its citizens. away from providing double subsidies, Since then, three legislative revi- But there is much more in this legis- where we provide water subsidies to sions have expanded the program’s cost lation, because this legislation is being irrigators in the West, and they grow tenfold to almost $25 billion a year and used to hide a whole series of decisions subsidized crops with the subsidized rising. The Democrat’s philosophy, as by the Republicans in the Committee water. We tried to say pick one sub- usual, was if a little is good, than a on Resources to just be lavish and to sidy. Do not double dip us. whole lot must be better. As a result, lard on taxpayer subsidies to a whole No, that was not good enough. Again, the EITC is the fastest growing cash series of industries that cannot justify this House has voted numerous times assistance program in the Federal them, do not need them, and that this to end that practice, but it is in this budget. The current spending trends Congress has voted against extending reconciliation bill, because they know simply aren’t sustainable. those subsidies time and again. that if it was brought to the House If we are to preserve the EITC for So what have the Republicans chosen floor by itself, it in fact would be working poor families who most need to do? They chose to fold them into the turned down by this Congress and by its benefits, we must reform it to slow reconciliation bill so they will not be this House, because the water subsidies down the program’s fantastic growth visible to the public, so the public will have been turned down, the grazing rate. Even the Clinton administration not be aware of the fact that the deci- subsidies have been turned down, the knows this. In the budget President sion has been made by the Republicans royalty provisions have been turned Clinton submitted to Congress this to continue to give away public lands down, on a bipartisan basis in the last year, he proposed denying the EITC to at essentially no cost to mining compa- several months in this House. So they families with more than $2,500 in divi- nies, to foreign-owned mining compa- put them all together, and then they dend and interest income. Why? be- nies, and let them extract billions of put them into the bill, and there is no cause the EITC eligibility criteria ex- dollars of gold, silver, and platinum amendments allowed, it is up or down cludes many sources of income that from the public lands owned by the tomorrow. families now receive. As a result, some taxpayers. Corporate welfare for the western ex- families with incomes as high as $70,000 The House of Representatives has tractive industries worth billions of a year are eligible for the credit. voted time and again against that pro- Also, we should not give the EITC to vision. It has voted twice this year not dollars is maintained in this legisla- childless workers. For 18 of the EITC’s to allow that to happen. But that is in tion, and it will be reported off of the 19-year existence, both Republicans this reconciliation bill because the Re- House floor tomorrow. and Democrats agreed its benefits publicans cannot tear themselves away Of course, then there is the grand- should go to working families with de- from that type of corporate welfare. daddy, and that is giving away the Arc- pendent children, because the whole We see that they do the same thing tic Wildlife Refuge in this legislation. purpose of the EITC was to help work- with the grazers, people using the pub- Once again, that provision cannot pass ing families with young children stay lic lands to graze cattle. In this legisla- on the floor of the House of Represent- off the welfare rolls. tion we are giving reduced fees when, atives as a freestanding bill. They say Under our proposal, low-income in fact, the recommendation by GAO it is an emergency; that we must open working parents who support their and others is that they should be in- up the Arctic Wildlife Refuge for oil children will see their tax credit rise creasing those fees for the use of those drilling because America imports half substantially. This increase, coupled public lands, that they do not pay what of its oil. with our $500 per child tax credit, will people pay on private land, but this bill Well, they also have legislation here go a long way to helping American continues the subsidies to those indi- to make sure that we allow the export families get back on their feet and pro- viduals. of Alaskan oil to Japan and to other vide for their children. This bill sells off the forest lands of countries on the Pacific rim. so it is Even the Clinton administration some of the largest ski resorts in this not for America, it is for their cor- agrees that in order to preserve and country, and it does not guarantee that porate clients. protect this program for the working the American public will continue to It is for the opening up of these kinds families who need its benefits, we must have access to areas like Aspen and of areas, and they cannot only do it in reform it to slow down the rate of Vail and other areas of recreation. No, a reconciliation bill. They cannot do growth. I urge my fellow Members to it turns them into a private domain. this in a freestanding bill, because help us preserve and protect the earned That is what this bill does. these provisions, these provisions, can- income tax credit for American fami- Why does it do it in this legislation? not stand the light of day, they cannot lies. Because that legislation cannot win a stand the scrutiny of the taxpayers, Ms. SLAUGHTER. Mr. Chairman, I majority of the vote on this House they cannot stand the scrutiny of our yield the balance of my time on our standing alone, just as the deepwater constituents, and that is why they are side this evening to the gentleman royalty subsidies that have been in- in this legislation. from California [Mr. MILLER], who is serted into this legislation in the Sen- This legislation is an absolute Christ- the ranking Democrat member on the ate were turned down in this House, mas tree. This is absolutely a Christ- Committee on Resources, and I ask turned down in the Senate. In this leg- mas tree of gifts to special interests in unanimous consent that he be per- islation, you cannot amend them out, the form of corporate welfare. The mitted to manage that time and yield take them out. tragedy is that every dollar that is time to other Members. So they lavish hundreds of millions given away to mining companies and to The CHAIRMAN. Is there objection of dollars, hundreds of millions of dol- irrigators and to grazers and timber to the request of the gentlewoman lars in subsidies to the largest and companies, is paid for by Mr. and Mrs. from New York? richest oil companies in the world. America. It is paid for by people paying There was no objection. Who pays for those subsidies? The the payroll taxes, paid for in reduced Mr. MILLER of California. Mr. Chair- children that you heard about earlier, Medicare benefits, paid for in reduced man, I yield myself 5 minutes. the poor people in this country, the el- Head Start and reduced education. (Mr. MILLER of California asked and derly with their health care. That is That is the tragedy of this legislation. was given permission to revise and ex- who pays for those subsidies. Mr. Chairman, this legislation is supposed to tend his remarks.) We continue to see the Committee on reduce the deficit, cut the cost of Government, Mr. MILLER of California. Mr. Chair- Resources just go after and continue to and protect taxpayers from waste. man, already this evening Americans lavish taxpayer subsidies on industry But the resources portion of this bill is truly have begun to learn the tragic manner after industry where there is no dem- Christmas in OctoberÐa legislative rummage in which this legislation treats the el- onstrated financial need for that sub- sale of valuable Federal assets at bargain derly and treats our students and sidy but simply doing it because they basement prices that runs rampant over the treats our children and the poor of this did it. environmental laws of our country. H 10804 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Many of those who implore us to run Gov- environment, strengthen competition and the Having said that, I am very con- ernment like a business are leading the fight free marketÐand raise serious money. But the cerned that we have inadvertently de- to give away these public resources. majority would rather shill for the exploiters vised a formula that could result in a The bill breaks with over 30 years of law than vote for the taxpayers. number of low-income working fami- and policy and opens the Arctic National Wild- The majority failed to accept Democratic lies actually being a net loser com- life Refuge to oil development. And we may proposals to end below-cost timber sales by pared to current law, even after the en- not even get the money. This bill breaks a the Forest Service that would save $315 mil- actment of the $500 per child tax credit. legal agreement with Alaska that could reduce lion over 7 years. I know that the gentlewoman from revenues to one-tenth the amount projected. The majority voted against ending double Connecticut [Mrs. JOHNSON] is strongly And why are we doing this in reconciliation? subsidies to farmers who receive Federal sub- committed to helping the working poor Surely not because of the need for energy sidized water, although the House has voted in our country. The gentlewoman has independence: this House just passedÐat the for this reform time after time. So, we will con- labored diligently for some time now in urging of ANWR proponentsÐlegislation to tinue to pay farmers to grow crops we are welfare reform legislation, and I be- allow the export of Alaska oil. paying other farmers not to growÐand cost lieve that reform of the EITC program This bill's phony mining reform package the taxpayers a half billion dollars over 7 goes hand in hand with this work. I be- would make the Mineral Kings blush. Not 2 years. lieve this EITC problem can be fixed yeas ago, this House voted for real mining re- Now, why are all these destructive, wasteful with a very slight modification of a form that would impose a real royalty for the policies loaded into a budget reconciliation bill, technical change, and I would like to first time, raising $540 million over 7 years especially when many of them do not really work with the gentlewoman and mem- and initiating the cleanup of contaminated raise money? Why have the Republicans in- bers of the committee to accomplish abandoned mine sites. This phony reform sisted on including phony reforms when it is that. raises a total of $76 million over 7 years, vir- readily apparent that, given a fair vote on the Mr. RIGGS. Mr. Chairman, will the tually none of it from a royalty, which is so floor, the House would be willingÐand has gentleman yield? laden with deductions and exemptions that been anxiousÐto vote for real reform? After Mr. HUTCHINSON. I yield to the gen- any mining company that pays it should fire its all, the House has voted against mining pat- tleman from California, who has accountant. The House voted three times this ents, against deep water royalty holidaysÐnot worked very diligently on this prob- year to maintain the moratorium on giving under Democratic control, but this year. lem. away public mining lands to multinational min- I will tell you why this is all loaded into rec- Mr. RIGGS. Mr. Chairman, I thank ing conglomerates. This bill ignores those onciliation. my colleague for yielding and for his votes and instead charges the mining com- It is to protect these outrageous, expensive fine work in this area. I want to associ- pany the surface value only, which is like sell- giveaways to corporate interests from real de- ate myself with his comments. ing Fort Knox for the value of the roof. bate and real review. These capitulations to Mr. Chairman, I, too, want to express This bill contains an absolute sham reform corporate welfare are unacceptable to the my concern over the potential negative of national parks concessions, an irresponsible American taxpayer and unacceptable to this effects that our much needed and long plan that makes a mockery of the true biparti- House: But they can get loaded into a great overdue efforts to reform the earned in- san concessions reform that was approved by big reconciliation bill, hidden away from scru- come tax credit could have on a small the House of Representatives by a vote of tiny and amendment, and then strongarmed number of very low-income working 386±30 just last year. This sham reform locks through without amendment. families, and I want to let the gentle- in the current concessionairesÐwho have en- These proposals are in this reconciliation bill woman from Connecticut [Mrs. JOHN- joyed bargain basement contracts. because they could not survive on their own SON] and her colleagues on the Com- This bill orders the Government to sell na- on this floor. They cannot stand taxpayer scru- mittee on Ways and Means know we tional forest lands used as ski resortsÐplaces tiny. They cannot survive the light of day. would very much like to work with like Vail and AspenÐto monopoly bidders, Giveaways to the mining corporations, the them on correcting this problem when promoting the intensive development of these ranching corporations, the irrigation conglom- the budget reconciliation bill goes to lands and potentially closing access to millions erates, the recreation industry. Billions of dol- conference. of Americans. Why is this in reconciliation? It lars, our dollars, dollars that belong to the Mrs. JOHNSON of Connecticut. Mr. violates PAYGO by increasing direct spending American people, given away without real Chairman, will the gentleman yield? and locks in place the ski industry's fee sched- scrutiny. And the environment gets devastated Mr. HUTCHINSON. I yield to the gen- ule that GAO says fails to provide a fair return to boot. tlewoman from Connecticut. to taxpayers. This is a cynical and deceptive act of legis- Mrs. JOHNSON of Connecticut. Mr. This bill has a phony reform of Federal lative sleight-of-hand. They are raising pen- Chairman, I thank my colleagues for grazing policy that lets cattle graze for dis- nies, but giving away billions. These provi- their support of our reforms of the count rates on public landsÐfar cheaper than sions alone more than justify a vote against earned income tax credit, reforms that on adjacent State or private lands. Antireform corporate welfare, against the destruction of are reasonable, that are fair, and that leaders pretend this has something to do with the environment, and against this bill. are needed; but also to their pointing family ranching, but they know that just 25 Mr. Chairman, I reserve the balance to a problem that exists in that reform, percent of the permittees control 75 percent of of my time. in that it does actually disadvantage a the forage, including ``wingtip cowboys'' like Mr. KOLBE. Mr. Chairman, for pur- small group of people who need that J.R. Simplot, a national brewery, a Japanese poses of a colloquy, I yield 2 minutes to earned income tax credit. We are work- land and livestock company, and a national oil the gentleman from Arkansas [Mr. ing on that problem. We are delighted company. The House has voted 5 times since HUTCHINSON]. to have the gentlemen work with us. 1990 to substantially raise the grazing fee, Mr. HUTCHINSON. Mr. Chairman, I We will have some of that problem be- most recently, in 1993 by a vote of 317 to thank the gentleman for yielding me fore this becomes law. I thank the gen- 106. This bill gives the victoryÐand the sub- time. tlemen for their interest, concern and sidiesÐto the ranchers. Mr. Chairman, I would like to ask leadership. This is a disgrace, and a very costly dis- the gentlewoman from Connecticut Mr. MILLER of California. Mr. Chair- grace for the American taxpayer. The majority [Mrs. JOHNSON] and the gentleman man, I yield 3 minutes to the gen- is using tiny so-called savings to qualify for the from California [Mr. RIGGS] to join me tleman from Minnesota [Mr. VENTO]. reconciliation process gigantic changes in re- in a colloquy on the earned income tax (Mr. VENTO asked and was given source and environmental law. On ANWR, on credit. permission to revise and extend his re- mining, on grazing, on concessionsÐthey not Mr. Chairman, first I would like to marks.) only fail to pass stronger provisions, they un- commend you and the members of the Mr. VENTO. Mr. Chairman, I rise in dermine and repeal vast areas of existing pub- Committee on Ways and Means for opposition to the 1996 budget reconcili- lic law before they turn the miners and the your outstanding work on reforming ation bill. Someone said grazers and the drillers loose on the public the EITC. It is a program that has ‘‘wreckonciliation’’ is really what it is. lands. grown way beyond its original scope But today I wanted to especially high- Now, there is another way to do this: We and intent, and is in dire need of re- light the impact on the environment can reform resource management, protect the view. and the natural resource area. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10805 This gives rise to a new era of robber ‘‘wreckonciliation,’’ wrecking the Mr. KOLBE. Mr. Chairman, I yield barons that were in the 19th century. country and destroying our natural re- such time as he may consume to the Now we have the robber barons in the source legacy. gentleman from Ohio [Mr. OXLEY]. 1990’s. They act as if the only good tree Mr. Chairman, the 1996 budget reconcili- (Mr. OXLEY asked and was given is a horizontal tree, and that the cre- ation bill environmental provisions continue the permission to revise and extend his re- ator endowed our Nation with a vast tradition of 19th century robber barons who marks.) and wonderful resource so the special exploited our Nation natural resources and Mr. OXLEY. Mr. Chairman, I rise in interests could make a profit. lands. From the bill, one would think the only support of the reconciliation package. This legislation sets in motion the good tree is a horizontal tree and that the Cre- Mr. Chairman, I rise today in strong support wholesale exploitation, the subsidiza- ator endowed our Nation with vast and won- for the 7-year Balanced Budget Reconciliation tion and degradation of America’s nat- derful resources so that the special few could Act of 1995. As the name implies, this pack- ural resource legacy, our children’s make a profit. This legislation sets in motion age of reforms outlines a clear path to a bal- heritage. We see the imprint of the spe- the wholesale exploitation, subsidization, and anced budget in the year 2002. We promised cial interests, including mining, tim- degradation of America's natural resource leg- the American people that we would bring the ber, oil, and gas industries, throughout acy our children's heritage. We see the imprint budget to balance in 7 years and tomorrow we the Republican budget measure. of special interests, including the mining, tim- plan to deliver on that promise. While bal- The decision totally destroyed the ber, oil and gas industries, throughout the Re- ancing the budget in itself is an admirable Arctic Natural Wildlife Refuge publican budget measure. goal, our bill does much more, including: re- [ANWR], by permitting oil and gas ex- The decision to destroy the Arctic National forming our broken welfare system, providing ploration and drilling, stands out as Wildlife Refuge [ANWR] by permitting oil and needed tax relief for American families, saving the spirit in which this law is being gas exploration and drilling stands out as the Medicare from certain bankruptcy, restructur- written. This last great piece of arctic spirit in which this law is being written. The ing Medicaid so States can meet their own wilderness, the arctic plain, is the last great piece of American Arctic wilderness, specific needs, and many other reforms that home to the 160,000 member porcupine the Arctic plain is home to the 160,000 Porcu- ensure that the legacy we leave our children caribou herd, where the calves are pine Caribou herd, where the calves are born. is debt free and full of opportunity, rather an born, right on the Arctic plain. Beyond Beyond the caribou the grizzly and polar ever increasing Federal deficit and a bloated, that, of course, the grizzlies, the polar bears, arctic foxes, and numerous other spe- more intrusive Federal Government. Mr. Chair- bears, the arctic foxes, the conspicuous cies conspicuous and inconspicuous flora and man, I would like to commend the various and inconspicuous fauna and flora fauna abound. Opening this refuge area to committee's that worked diligently to complete abound in this area, an area that has drilling will guarantee destruction of this Arctic this package of long needed reforms. I look been untouched since the ice age. desert wilderness. forward to a productive debate that will show But that is not stopping the robber The majority of the American people oppose the American people that their elected rep- barons in 1995. The majority of the drilling for oil in ANWR. A CNN poll conducted resentatives can act in a responsible manner American people, both on CNN and in September showed two-thirds of the re- for the future of our country. other polls, two to one oppose this ac- spondents opposed opening up ANWR for ex- Mr. KOLBE. Mr. Chairman, I yield 2 tion. But that does not have any im- ploration. A more recent poll conducted by minutes to the distinguished gen- pact. We disregard the polls. We dis- Deardourff/The Media Group in mid-October tleman from Georgia [Mr. COLLINS]. regard the people when you take a pol- confirmed the CNN findings. Those polled Mr. COLLINS of Georgia. Mr. Chair- icy like this forward. You disregard the strongly believe ANWR is a unique area that man, I thank the gentleman for yield- scientific information. Everything is must be protected and they opposed drilling in ing me time. shunted aside. No consideration, no de- the Arctic Refuge by a margin of almost 4 to Mr. Chairman, the greatest challenge liberation. The Republican policy mak- 1. Despite the overwhelming public support for to this Congress is its deficit and the ers know best, push instant gratifi- protecting ANWR, the Republican leadership greatest threat to this Nation is its na- cation for oil development and specula- has refused to pull this specific provision from tional debt. I believe it was Mr. Jeffer- tive leasing. the reconciliation bill or permit a vote. The son, one of our Founding Fathers, that That is what we need, a few more polls are disregarded. The scientific informa- said a democracy is indefinite because leases sitting, they are not doing any- tion is shunted aside no considerationÐno de- those who are governed under a democ- thing with, but do not let that bother liberation. The GOP policy makers who know racy will learn of the benefits it can you. This does not stop with Alaska. It best push instant gratification for oil develop- reap from its treasury and it will vote goes on to grazing, it goes on to tim- ment, and speculative leasing takes priority for people who will enhance those bene- ber. It lets the park concessionaires over common sense. fits. take over the park. The egregious provisions of this legislation Well, our democracy is in jeopardy. What we have here is a great new do not end at the Alaska border. The bill gives We are spending some $500 million a mountain, a mountain of special inter- private park concessionaires in our National day now more than we take in to help est benefits, a new national monument Parks control over the National Park itself and pay for benefits that have been en- to the greed and special interest is the NPS stewards. Grazing permit fees on hanced by this Congress. The reconcili- being built today. public lands are reduced below the already ation bill will change this. It will end Let us name it what it is, Mount scandalously low prices. The so-called mining the deficit spending by balancing the GINGRICH, brought to you by the con- reform provisions are nothing but a sham. people’s books. It will change welfare tract scheme in conjunction with the Selling the land at fair market value for the from the current welfare system, a sys- 1990 robber barons, who ride high in the surface without consideration of the value of tem which is out of control, a system saddle of the Republican Congress. the minerals enshrines into law for the mining which has spent $5 trillion over the last That is what they are giving to you, industry yet another subsidy at American tax- 30 years creating a dependency of bene- the destruction of your legacy. payer expense at the cost of our natural herit- fits on the people’s treasury, a welfare They are going to worry about the age. While the Republican majority leadership system that is anti-family and is anti- deficit. They are worried about the def- has determined to slash education, health work. icit? They are giving away the re- care, and other social spending for the chil- The budget reconciliation bill will re- sources. They are selling the assets and dren, the poor and the elderly, they have piled duce welfare dependency. It will limit then score it as if it is money in the on the corporate welfare in the natural re- cash, cash for having children out of bank. They are selling the future of sources provisions of this budget reconciliation wedlock, cash for misbehavioral chil- this country, they are selling our natu- bill into a new mountain of special interest dren, cash for drug addicts and alcohol- ral resources, they are destroying the benefitsÐa new national monument to greed ics. Yes, Mr. Chairman, it limits cash things that have been built and that and the special interests is being built today. to able-bodied, irresponsible parents. have made this country what it is Let's name it what it is, Mount GINGRICH, But it does one other thing; it still pro- today. But the fact is that everything brought to you by the contract scheme in con- vides health care, nutrition and child goes in the name of reconciliation. junction with the new 1990's robber barons care for unfortunate children. Well, reconciliation is named right, es- who ride high in the saddle of this good Con- Mr. Chairman, I urge the Members of pecially when you spell it w-r-e-c-k, gress. this body, support ending the addiction H 10806 CONGRESSIONAL RECORD — HOUSE October 25, 1995 that we have created to the public’s ance tax. The Republican proposal would it? Maybe it has something to do with a fact budget, the people’s Treasury. Support allow additional deductions to be made from the bill's sponsors freely admitÐthat the oil balancing the people’s books. Vote for gross revenues; such as engineering costs, and gas industry had a big hand in writing the the Budget Reconciliation Act. costs of support services and support person- bill. Mr. MILLER of California. Mr. Chair- nel, environmental compliance, permitting and The Republican oil and gas proposal is seri- man, I yield 2 minutes to the gen- other administrative costs. Obviously, by de- ously defective. It would drastically modify the tleman from Hawaii [Mr. ABERCROM- creasing the gross, the royalty will be levied existing statute of limitations on the collection BIE]. on a far smaller net and thus we will collect far of royalties due taxpayers, and would create (Mr. ABERCOMBIE asked and was less than is fair. dangerous precedents that will diminish the given permission to revise and extend The Republicans will try to tell you that their government's ability to collect royalties. his remarks.) royalty will raise revenues in the long termÐ The bill would limit Federal oversight of the Mr. ABERCROMBIE. Mr. Chairman, I that after everybody gets their patents and lands companies lease for oil and gas. One rise in vehement opposition to the rec- new claims are being staked on Federal lands, section would allow marginal leases to operate onciliation bill before us tonight, and that their royalty will be in place and will raise without paying any royalties. in particular to the provisions of title money. But, they won't tell you that all other Also, the bill would change longstanding IX as reported by the Resources Com- Federal royalties are charged on gross reve- Federal policy and require the payment of in- mittee. As I am the ranking Democrat nues because net royalties are notoriously dif- terest to lessees who make overpayments. on the Mining Subcommittee, I will re- ficult to administer and just don't raise all that This change will cost, according to CBO, $60 strict my comments to the energy and much money in return. And they won't tell you million over 7 years, hardly a suitable provi- mineral resources portions of the bill. that according to a review of the Nevada net sion for a reconciliation bill intended to reduce, Let me start by saying that Jesse proceeds tax report for 1992±1993, royalties not expand, Federal deficits. James never had it so good. The sham paid by the Nevada mining industry to private HELIUM PRIVATIZATION mining law reform package included in interests averaged 3 percent of gross reve- Finally, the helium privatization section this bill will make it easier to steal nues and 11 percent of net proceeds. In the adopted by the committee would terminate the gold—and oil and gas—from the Amer- bill before you, the American taxpayer is get- Federal helium program. While the ending of ican taxpayer than even Jesse, Butch ting the short end of the dealÐcombining the the archaic helium program is generally sup- Cassidy, and the Sundance Kid could lowest rate with the least valueÐ3.5 percent ported, the committee rejected an important have ever possibly hoped for or imag- of net proceeds. amendment I offered to provide assistance to ined. The bill would also change the current $100 Federal helium employees such as extending Under the Mining Law of 1872, signed rental fee to a sliding scale fee starting at life and health insurance, allowing the use of by President Ulysses S. Grant, gold $100 for the first years and ending with $500 local employment agencies to help place em- miners can gain fee simple title to Fed- for years the claim is held beyond 20 years. ployees, relocation assistance, and govern- eral gold, silver, and other minerals But it also allows deduction of up to 75 per- mentwide priority rather than just department- and the land containing them upon cent of the costs of developing the claim for wide preference in hiring. CBO advised the committee that the payment of a nominal sum: $2.50 or $5 mining. In addition, the bill would give away amendment would have had no budgetary ef- an acre. Supporters of the bill before us the first year's rental fee. According to CBO, fect. Even so, the committee refused to pro- will profess that their bill will change the Republican royalty and holding fee would vide this additional assistance to the 200-plus this situation. But instead it merely raise about $14 million over 5 years. By sim- replaces a bad system with 1 which is employees and their families who will lose ply extending the $100 holding fee, as the their jobs in Amarillo, TX in the next year. Al- no better. Democrats proposed, we would have raised The Republicans will boast that their though there is general agreement that we $33 million in each yearÐor twice as much in need to reduce unnecessary functions of gov- proposal will require that mineral-rich one year as the 5-year total in the Republican lands be priced at fair market value. ernment like the helium program, it is unfortu- proposal. nate that the majority was unwilling to provide But, what they won’t tell you is that, CBO scores the Republican mining pro- under their bill, the land will be sold this assistance to the employees, and their posalÐboth royalties and holding fees at a families, who have served their government for the value of the surface without meager $14 million over 5-yearsÐthat aver- consideration for mineral values. It and taxpayers for many years. ages out at less than $3 million per yearÐ In conclusion, I would reiterate that this is a makes no sense to sell our minerals for that's less over 5 years than the royalty we bad bill because it is abusive to the environ- a pittance of their intrinsic value—it proposed would raise in one year. ment, because it deprives the taxpayers of the would be like selling a bottle of Dom The mining reform bill passed by the House value of the resources that belong to them, Perignon for the price of the cork. in 1993 would have raised real money and still and because it makes a mockery of the rec- Under the Kasich substitute, the De- protected vested mining rights on those claims onciliation and legislative processes. These partment will be forced to fast track that could not qualify for a patent. The Repub- provisions are illustrative of the willingness of approval of the 233 patent applications lican mining proposal before you today en- the majority to bow to the special interests in the pipeline, and give away as much ables all 300,000 existing claims to get a pat- represented by lobbyist for resource consump- as 15.5 billion dollars’ worth of gold and ent. All claims that are able to qualify for a tive corporations at the expense of the na- silver and reserve no royalty whatso- patent get out of paying any royalty to the tax- tional interest and the taxpayers. Severe and ever. payer in the future. in many cases irreparable damage will be To be fair, we should note that the It's evident to me that their intent is not to done to our Treasury, to our Nation's legacy of Republican bill would reserve a royalty raise funds to meet reconciliation or deficit re- natural resources, to our fish and wildlife re- on hard rock minerals mined on Fed- duction goals, but rather to pass a sham min- sources, and to our public lands by passage eral lands for the first time in this Na- ing law in order to quell the momentum for re- of this legislation. tion’s history. Unfortunately, due to sponsible reform. I urge my colleagues to vote ``no'' on H.R. the way the Republican majority draft- FEDERAL OIL AND GAS ROYALTIES 2517, the budget reconciliation bill. ed the bill, it will not raise any money. The Republican bill also includes a give- Mr. KOLBE. Mr. Chairman, I yield 2 And, it didn't have to be that way. In the away for big oil. The Santa Fe Reporter said minutes to the distinguished gen- February 1995 budget estimates, CBO scored in its October 11 issue: tleman from Alaska [Mr. YOUNG] chair- the 8-percent net smelter return royalty, pre- The result—of the Oil and Gas Royalty man of the Committee on Resources. viously passed by the House with a 3 to 1 Fairness proposal—could be a slashing of un- (Mr. YOUNG of Alaska asked and was margin, as raising $90 million per year; over 7 told millions of dollars the state normally given permission to revise and extend years, that equals $540 millionÐwith one year uses for schools, highways, and social pro- his remarks.) for transition. grams. Mr. YOUNG of Alaska. Mr. Chair- The Republicans will try to tell you that their The Western States Land Commissioners man, I would like to address some of royalty is the same as the Nevada net pro- and the conservative Republican Governor of the things that have been said on this ceeds severance tax which raises a lot of Wyoming have come out against the proposal. floor in the recent moments of this de- money for the StateÐso their royalty will It doesn't even raise all that much moneyÐ bate. eventually raise revenues. But, the royalty in in fact it was a money loser when it came out First, I want to stress one thing, in their bill is not the same as the Nevada sever- of the Resources Committee. So why include the reconciliation package that came October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10807 out of our committee, the Committee Mr. FARR. Mr. Chairman, I thank $1 we increased spending $1.59. That on Resources, we addressed the grazing the gentleman from California [Mr. demonstrates the problem. So where is provisions that were mentioned by the MILLER] for yielding me time. all the spending going? Some will gentleman from California. We in fact Mr. Chairman, I hear from my con- argue that it is coming primarily in raised the fees for grazing. I do not see stituents that those of us serving in the defense area. But guess what? Ten that in their substitute. Congress should give the three-way years ago, in 1986, we spent $273 billion The second thing, with what we call test to all bills. The three-way test on defense. This year we are spending the hard rock mining provisions, for that my district holds me accountable $272 billion on defense, a billion dollars the first time we created a royalty pro- for is the three E’s, which stand for less than in 1986. And if we factor in in- vision for the taking of minerals from education, economy, and the environ- flation, defense spending has actually the so-called public lands. So we have ment. This bill fails on all three ac- declined by $73 billion, or 27 percent in addressed that. We just do not speak counts. real terms in the last decade. out in anger or frustration. We have First, it hurts education. It elimi- Mr. Chairman, if the spending in- really tried to do what we think is cor- nates the 6-month interest subsidy on creases are not in defense, where are rect to help balance the budget. We are student loans for new college graduates they? A big part of the answer, as not giving anything away in this provi- which will cost students $3.5 billion. It shown on this chart, is in the area of sion which came out of our bill that also caps spending for school lunch and Federal spending on means-tested pro- came to the Reconciliation Act. child nutrition programs which help grams that increased dramatically for I would also like to suggest that students meet the basic nutritional more than three decades. In constant there has been more misinformation, need. dollars it grew from less than $10 bil- more flat out dishonesty, about the Second, it hurts the economy. It cuts lion in 1950 to the incredible sum of Alaskan Oil Reserve in the past, I $13.4 billion from agricultural pro- $262 billion this year. And, ladies and would say, 6 to 8 months than I have grams without reinvesting any of those gentlemen, that is an increase of 2,600 ever experienced in my 22 years here. savings into research or trade, threat- percent. That is right, 2,600 percent. We have to keep a little bit of history ening our Nation’s critical agricultural Mr. Chairman, according to the bi- in mind. In 1980 we set aside 147 million industry. It cuts the earned income tax partisan Kerrey Commission, in their acres of land for single use purpose in credit which gives millions of Ameri- report, they said unless we do some- the State of Alaska. But the Congress cans incentive to be productive mem- thing about entitlement spending, in at that time said that we ought to look bers of our work force. Above all, it just a few short years entitlement at the coastal plain, where the oil pos- cuts programs that encourage trade, spending, plus interest from the na- sibly could be, and then there would be research, and development which have tional debt, will consume the entire a recommendation by the President the serious impact on our economic Federal budget. That is right, not a whether we should drill. That rec- growth. penny for the three E’s, as the gentle- ommendation came down after a period Finally, this bill hurts the environ- men said. Not a penny for the environ- of time, a period of time, that said yes, ment. The Committee on Resources ment. Not a penny for education. Not a the Congress should have leasing for oil part of this bill are a fire sale on some penny for the economy. Not a penny on the oil reserve, the so-called ANWR of our most precious natural resources. for school loans. Not a penny for de- area. There has been 40 days of hear- It sells the Alaska National Wildlife fense. Not a penny for our veterans. ings held since 1978 after the rec- Refuge to the oil companies. It sells Not a penny for any of it in the discre- ommendation came down. It is esti- mountains to the ski resorts, and sells tionary area unless we deal with the mated that there is between 3 billion the rivers to the water developers. It explosion in entitlement spending. sells the trees to the timber cutters. It and 30 billion barrels of oil 74 miles The conclusion to be drawn from sells the precious minerals to the min- away from the existing pipeline. these numbers, Mr. Chairman, is under- ing companies. None of the funds that b stood by almost everyone in America. 1845 are derived from these sales get rein- There are only a few on the other side This area is strongly supported to be vested into the environment. It grabs of the aisle that still fail to appreciate leased by the native people of Alaska. it all and hides it. it. The Nation’s budget deficit is Many Members might have had a Mr. Chairman, this bill also elimi- caused by wild spending increases. chance to visit with them. These are nates dozens of programs from the Na- These increases have been going on for people that had little or nothing before tional Oceanographic and Atmospheric three decades and it is time to stop the development of oil and now have Administration, NOAA, including those them. what they think is their right due off that study global warming and re- of their land. They have water and sew- search on the ocean environment. This reconciliation vote and this bill age and schools and health, which they This bill does not answer our fiscal is not about the future of the GOP, it did not have before. problems. Congress has already cut the is not about the future of the Demo- But more than that, Mr. Chairman, deficit by $130 billion and did so with- cratic Party, it is not about the future we are now importing $1 billion a week out hurting education, without hurting of who will control this body, but it is of foreign oils—$1 billion per week. It is the economy, and without hurting the about the future of our children. It is important that the truth of this matter environment. It also did so without about the future of this country. It is comes forth. Do not look at the ads and balancing the budget on the backs of about the future of our grandchildren the misinformation that has been con- the poor and the elderly, yet this bill and what kind of opportunity they are veyed to this body and to the general does exactly that by increasing the going to have and whether they will be public. Let us look at this Reconcili- cost of Medicare and giving tax relief saddled with debt. We have the oppor- ation Act as a responsible resource de- to the very wealthy. tunity in this bill to begin to control velopment and protection of the envi- Mr. KOLBE. Mr. Chairman, I yield 3 spending, to control our destiny once ronment. minutes to the distinguished gen- again. We have that opportunity with- Mr. MILLER of California. Mr. Chair- tleman from Arkansas [Mr. HUTCHIN- in our grasp, let us not let it slip away. man, if I might inquire of the Chair, SON]. Mr. MILLER of California. Mr. Chair- am I correct that I have 10 minutes re- Mr. HUTCHINSON. Mr. Chairman, man, for purposes of debate only, I maining? the theme of this reconciliation bill is yield 2 minutes to the gentleman from The CHAIRMAN. The gentleman controlling spending. As Republicans Vermont [Mr. SANDERS]. from California [Mr. MILLER] has 91⁄2 have been saying for years, the Federal Mr. SANDERS. Mr. Chairman, let me minutes remaining, and the gentleman deficit is driven not by low tax reve- introduce a concept into this discus- from Arizona [Mr. KOLBE] has 10 min- nues but by too much spending. sion that does not often get heard, and utes remaining. A 1992 study by the Joint Economic that is the concept of justice. Our Re- Mr. MILLER of California. Mr. Chair- Committee demonstrated beautifully publican friends are right when they man, I yield 2 minutes to the gen- and tragically that over the last 30 talk about the serious problem of the tleman from California [Mr. FARR]. years, every time Congress raised taxes national debt and the interest on the H 10808 CONGRESSIONAL RECORD — HOUSE October 25, 1995 national debt. They are dead wrong in middle class to lower income America. ons that even the Pentagon does not terms of their reconciliation package. And the poverty rate, which was 15 per- want, like the B–2 bomber, at $1.5 bil- Mr. Chairman, what sense does it cent in 1965, after 20 years of going lion per copy, a weapon that does not make and how are we moving toward a down, is 15 percent today. We have work, has no earthly purpose and the balanced budget when we give huge tax bought nothing in terms of a decrease Pentagon does not even want. breaks to the wealthiest people in in poverty. What we have bought is a Now, Mr. Chairman, if we start there America? How does that help us move six-fold increase in the out-of-wedlock then we have to do what they are toward a balanced budget? How does it birthrate. doing. That means $10 billion out of help us move toward a balanced budget In 1965, 6 percent of the children born student loans. The Republicans are when we repeal the alternative mini- in the United States were born out of going to cut $10 billion out of student mum corporate tax so that the largest wedlock. Today that figure is 32 per- loans. Members of that party got stu- corporations in America will end up cent. Why did this happen? Why no dent loans like I did to get here. The paying nothing in taxes? Explain to the poverty decrease but an increase in the Speaker of the House got student loans American people how that moves us to- out-of-wedlock birthrate? Because, Mr. to get here. ward a balanced budget. Chairman, the two most effective anti- b 1900 This morning, Mr. Chairman, the poverty programs, proven through gen- Progressive Caucus held a press con- erations of experience, through all the Now we are going to pull up the lad- ference and we documented that if this scholarship, the two most effective pro- der and say, ‘‘Sorry, we do not have the Congress had the guts to stand up to grams are work and family, usually money anymore.’’ That is absurd. We the large corporations and the wealthi- marriage. have got to balance the budget with est people in this country and elimi- The Federal welfare system condi- the right priorities. nated the $125 billion a year in cor- tions assistance to poor people on them Now, it is pathetic. We cannot even porate welfare that we currently pro- doing neither of those things. If they tax foreign corporations operating in vide, we could move toward a balanced work or if they get married, they get America. American corporations oper- budget in 7 years, but we would not no assistance. That is why poverty has ating overseas have to pay taxes, but have to slash Medicare, we would not not gone down and illegitimacy has no, the United States of America can- have to slash Medicaid, student loans, gone up. We have taken the dads away not levy a minimum tax against for- fuel assistance, or children’s nutrition from millions of American children and eign corporations operating here. They programs. we have given them the Government take all their profits out and pay noth- There is a way to move us toward a instead, and we are now living with the ing in taxes to this country. That balanced budget which is fair, Mr. result. would raise $25 billion a year. That Chairman, which does not come down Senator MOYNIHAN said, 30 years ago, would offset the cuts in student loans heavy on the poorest and most vulner- that a society that does that asks for and in the low-income housing tax able people in this country. Let us have and gets chaos. And we have chaos in credit program. the guts to stand up to the big money hundreds and hundreds of neighbor- Mr. Chairman, we have heard a lot interests and move toward a balanced hoods around the United States where about running the government like a budget in that way. this model predominates. business. If we are running the govern- Mr. KOLBE. Mr. Chairman, I yield 3 What do we do in this bill, Mr. Chair- ment like a business, look at the sub- minutes to the distinguished gen- man? It is really pretty simple. We ject before us at this moment, the nat- tleman from Missouri [Mr. TALENT]. take the welfare system and we shift it ural resource policy of the United (Mr. TALENT asked and was given so that instead of discouraging and pe- States of America. Mining royalties, no permission to revise and extend his re- nalizing work, we encourage it, and in one else gives away their precious nat- marks.) many cases we require if for able-bod- ural resources. No other country on Mr. TALENT. Mr. Chairman, I appre- ied people because it is good for them earth, no other landowner, no govern- ciated my colleague, the gentleman and their families. Instead of encourag- ment; just the United States Govern- from Vermont, Mr. SANDERS’ remarks, ing illegitimacy, we discourage it by ment at $2.50 an acre. and there have been a lot of sugges- removing the incentives in the welfare Mr. Chairman, we got $10,000 last tions in the last few minutes about package that encourage people to year for a $20 billion gold mining how we should have balanced the budg- make a decision that is terribly de- claim, and we gave it away for $10,000 et, but none of those were incorporated structive for themselves and for their to a Canadian company that does not in a plan from the other side when they families. And then we return power pay taxes in the United States. Is that had a chance to offer them. over the administrative details of this running Government like a business? Another reason to pass this reconcili- system to the people, exercised This bill would not fix that problem. ation bill is because it incorporates the through their State and local authori- This bill has a phony, sham mining Personal Responsibility Act, the wel- ties. royalty clause that would raise $14 mil- fare reform bill this House passed in Mr. Chairman, this is not the last lion over 7 years. Hey, that is pretty the spring, a bill designed to replace a step in welfare reform, it is the first stiff. failed system that is destroying fami- step. We have a long way to go. This The Congressional Budget Office, and lies and neighborhoods in America with lesson has been hard to learn. It has the gentleman from Ohio [Mr. KASICH], a system of assistance that is based on taken us years. We have paid a lot to a Republican, says that we could do family, that is based on work, and that learn it, and now I hope we learn it. It $540 million without even drawing a is based on responsibility. is important that we pass this bill and breath, and we would still have plenty Why do we need to do that, Mr. the welfare reform in it. of mining activity in the western Unit- Chairman? Let us look at a couple of Mr. MILLER of California. Mr. Chair- ed States. historical facts. In 1948 in the United man, I yield 3 minutes to the gen- New loopholes for the poor and suf- States the poverty rate was about 30 tleman from Oregon [Mr. DEFAZIO]. fering oil and gas industry. You know, percent. It declined steadily all Mr. DEFAZIO. Mr. Chairman, we are they have not been too profitable late- throughout the postwar era until it past the debate about balancing the ly. Actually, they have been quite prof- reached about 15 percent in 1965. And a budget. Fiscal responsibility has come itable, but they need new loopholes. seminal event occurred in 1965. The to Washington, DC. But the question is Why? Because it is payoff time here. Federal Government declared war on whose priorities will we use in bal- There was an election. There was an poverty. ancing the budget? expensive election. There is going to be In the 30 years since that date, Mr. The Republican majority says that an election. That is going to be an ex- Chairman, the Federal Government has we should start out by, first, reducing pensive election. Do my colleagues spent, in means-tested entitlement pro- taxes on the largest most profitable know what? Those PACs, the banking grams, in Federal spending or Feder- corporations in America, reducing PACs, the mining PACs, the oil and gas ally mandated State spending, $5 tril- taxes on the wealthy; that we should PACs, are dumping money into the new lion in transfer of payments from the increase military spending, buy weap- majority and they are getting their October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10809 payoff right here today. The Repub- As I have said, there are many prob- newal at such a simple level that com- licans are talking about cutting wel- lems with this bill from the perspective petition for concessions will be effec- fare. Cut corporate welfare first. of the environment. But, right now, I tively silenced. Mr. KOLBE. Mr. Chairman, I will want to focus on two of the most im- I did not think that the lesson of the close the debate on our side, and so I portant: The opening of the Arctic Na- 1994 elections was less competition, re- am the last speaker and would ask the tional Wildlife Refuge [ANWR] and the duced returns to the Treasury and a gentleman from California [Mr. MIL- National Park Service concessions pro- bigger backlog of park problems to LER] to complete his time. visions. deal with. Mr. MILLER of California. Mr. Chair- ANWR—BUDGET BILL ASSUMES SAVINGS FROM Mr. Chairman, the budget reconcili- man, I yield 1 minute to the gentleman ITS DEVELOPMENT ation bill is a sham for the Treasury, a from New Jersey [Mr. PALLONE]. We have been told by the majority travesty for the environment and a dis- Mr. PALLONE. Mr. Chairman, I party that opening up ANWR is impor- aster for the American people. I urge a wanted to just speak briefly in opposi- tant because the American people sup- ‘‘no’’ vote on this dangerous legisla- tion to the reconciliation bill in part port it and industry needs it to create tion. because of the opening up of the Arctic jobs and cut the deficit. Mr. KOLBE. Mr. Chairman, I yield National Wildlife Refuge for oil drill- But, this provision is not supported myself the balance of my time. ing. by the American public. As recently as Mr. Chairman, tomorrow we will Mr. Chairman, this is an example of July of this year, a national poll of come back and we will resume this de- the corporate handouts that the Re- 1,000 voters found that voters reject the bate, but perhaps it is a good point, at publicans on the Committee on Re- idea of allowing oil drilling in ANWR the midpoint of this debate, to stop and sources included in the reconciliation by more than three to one. In fact, in take stock of where we are and ask this bill. This bill gives away one of the last that poll 57 percent of those surveyed basic fundamental question: Why do we most valuable pieces of wilderness that opposed opening up ANWR while only do this? the American taxpayer owns, in order 17 percent favored opening it up. Earlier it was pointed out, it was said to boost up falling revenues in the oil This same poll also found that when in the words of the Contract With industry. In return we get nothing told that revenue from ANWR oil fees America, ‘‘Promises made, promises more than a few dollars we could get would be used to cut the deficit, the kept.’’ But these were not promises anyway if we reform our mining and numbers went up: Seventy percent said that were made behind some closed grazing laws to guarantee a fair return protecting this area should be our first door with some special interest group to the American taxpayer. priority and only 20 percent said we out of view of the American people, Mr. Chairman, energy security is not should use the fees from oil drilling to which is all too often the way it used the issue. I am a member of the Com- reduce the deficit. to be done. These were promises that mittee on Resources, but also the rank- The American people do not support were made out there on the west steps ing Democrat on the Committee on opening up the refuge, but it is also im- of this Capitol; promises that were Commerce Subcommittee on Energy portant to note that the oil we are told made in the full light of the American and Power. I can tell my colleagues is supposed to be there may not be people. that oil consumption is on the rise, but there after all. They were promises that were put we are not doing the things we need to An Interior Department study has down on paper. They were promises do to ensure that security. We are not found that there is only a 1 in 5 chance that were made in a Contract With investing in mass transit or renewable of there being any recoverable oil in America that was printed in national fuels research or alternative fuel vehi- ANWR at all. publications. cles. That is the way to ensure our se- And, even if there is oil there, it has They were promises that were re- curity. been estimated that full production of peated in town halls in stump speeches Opening up ANWR will only prolong this field would likely only provide across the Nation. They were promises our addiction to oil. It does nothing to enough oil to supply the United States that were written down in campaign wean the United States of its oil addi- for 200 days. How are we going to cut brochures. All of America could see tion or to wean corporations from the the deficit and create new jobs if them. They were there for all the world welfare rolls. there’s no oil there? Is the price we’ll to see. Mr. Chairman, at a time when Repub- pay in environmental protection worth Mr. Chairman, there is a more fun- lican Members are raising Medicare that risk? damental reason for doing this than taxes on our seniors to provide a $270 I ask the House, are we willing to promises made, and promises kept. We billion tax break to the wealthiest trade away one of the most remarkable do this, we do this reconciliation for Americans, I really find it appalling, natural areas in North America for a the young people of America. The but not surprising, that the Repub- few months worth of oil? Are we so des- young people who have a right to their licans on the Committee on Resources perate for a quick buck that we would future, as my generation grew up would include this corporate welfare sacrifice our natural heritage for a few knowing that we had a bright future for the oil, mining, and cattle indus- drops of oil that may or may not be for us. tries. where it’s supposed to be? I hope not We do it for the working Americans Mr. MILLER of California. Mr. Chair- and I urge a ‘‘no’’ vote on the legisla- of this country who have a right to be man, I yield 11⁄2 minutes to the gen- tion on these grounds alone. able to provide for their families. And, tleman from New Mexico [Mr. RICHARD- PARK SERVICE CONCESSIONS GIVEAWAYS IN THE yes, Mr. Chairman, we do it for the sen- SON]. BUDGET RECONCILIATION BILL ior citizens of this country who have a (Mr. RICHARDSON asked and was The National Park Service conces- right to live out their lives in dignity. given permission to revise and extend sions policies included in this rec- The sad fact is, Mr. Chairman, Wash- his remarks.) onciliation bill constitute a raid on the ington has been lying to these people Mr. RICHARDSON. Mr. Chairman wallet of the American taxpayer: This all too long. We have lied to senior this bill is the most obvious example bill specifically allows concessionaires citizens by telling them we could in- yet of the long parade of far-right anti- to set their own prices and rates unless crease their benefits and their pay- environmental bills that we have had there is no competition in or near the ments and the programs that were to consider in this Congress. parks. available to them without suffering the And this bill is probably the most This bill gives concessionaires great- consequences of inflation. damaging bill that we have yet to con- er protection than current law by se- We lied to working Americans by sider because it deals with many com- verely limiting the ability of the Sec- telling them we cared about their fami- plex issues that should have been con- retary of Interior from raising fees for lies, but then we denied them the sidered by authorizing committees, not concessionaires. wherewithal to provide for those fami- rammed through in this giant bill This bill writes a blank check to cur- lies. Today, we see the evidence around which is being rammed through the rent Park Service concessionaires by us, the evidence litters the landscape House this week. setting the standards for contract re- with broken and shattered families. H 10810 CONGRESSIONAL RECORD — HOUSE October 25, 1995 We just plain lied to young people. would have kept the program solvent for the ardize or reduce the pension benefits of mil- We heaped debt on them and scorned same period of time. The reason the Repub- lions of working-class families. It looks as if them because by and large they did not licans want to make $180 billion in additional the Republicans want to make certain that if vote and now the bill comes due for Medicare cuts is that they need the extra sav- families do work hard, struggle to get ahead, them. ings if they are going to balance the budget and manage to land a job with a pension, they The sad fact is that more Americans and pay for their tax cuts. would not enjoy the fruits of their labors when believe in unidentified flying objects For the same reason, they plan to cut Med- they retire. and UFO’s than believe that Genera- icaid by $180 billion over the next 7 years. All of the cuts I have mentioned would fall tion X will ever see one dime out of The Republican plan would block grant Medic- disproportionately on the working poor, the el- their Social Security. aid and transfer control over the program to derly, and poor children. Are these really the Mr. Chairman, this is a moral crisis. the States. While the bill before us today does groups we want to bear the burden of deficit This is a moral obscenity. We have bro- increase spending on Medicaid, it does so at reduction? Are these folks really failing to hold ken the link of trust between genera- a rate that is not sufficient to keep up with the up their end of our social contract? Are the af- tions in this country. But today, to- program's anticipated increases in caseload fluent families that will benefit most from this morrow, we can begin to restore, to re- and health care costs. The net result will most reconciliation bill's tax cuts the families most in pair that link, to restore that trust. likely be an increase in the number of unin- need of assistance? Mr. Chairman, we can do it with this sured people in this country, a lower quality of By all means, Congress should address the reconciliation bill, which makes deeper health care for those who are still covered by deficit, and the Federal Government should changes to Government than anything Medicaid, and an increase in cost-shiftingÐ provide the most hard-pressed American fami- we have done on the floor of this House transferring the burden of paying for health lies with a little tax relief. What amazes me is in the last 60 years. But it is not a care for the poor from the Federal Govern- that the Republican party believes that the 10 wrecking ball, it is a mason’s trowel, ment to other patients with private health in- or 20 percent of households in this country carefully reworking and rebuilding the surance. with the highest incomes are the families most walls and the floors, the doors and the This legislation also makes $22 billion in in need of government assistance. It seems as windows of this edifice. cuts to the earned income tax credit. These if the Republicans consistently attempt to At the end, what we will see is a cas- cuts will affect 14 million working familiesÐ solve society's problems at the expense of the tle, a castle that is good to live in for three quarters of all current recipients of the most vulnerable members of our communities. all Americans; a castle built on a sound EITC. These people need tax relief more than I find such actions reprehensible and short- fiscal foundation; a castle that is light- most families, and yet, they will have less dis- sighted. They certainly undermine Republican ed with the shining light of compassion posable income than under current law if this professions of concern for children and the and caring by all those who live within legislation is adopted in its current form. Mar- family. The policies in this bill will do more to it; a castle that is filled with hope, be- ginal tax rates for many of these families will destroy communities and hurt children than all cause there is opportunity for all to increase by more than 2 percentage points if the excessesÐreal and imaginedÐof the New grow, to have a better life. this legislation is passed. This appears to be Deal and the Great Society combined. I urge This, Mr. Chairman, is what it is the only case where Republicans are uncon- my colleagues to oppose this legislation. about. It is about our future. It is prob- cerned about the effect of increased marginal The CHAIRMAN. Pursuant to the ably, the most important vote in the tax rates on work decisions; apparently, if you order of the House of Tuesday, October careers of any of us here, no matter do not make much money, you do not deserve 24, 1995, all time for general debate has how long we have been here or how their sympathy. expired. many more years we will stay. The impact of the proposed changes in the We are often accused of casting our EITC would be compounded by the welfare re- Pursuant to the order of the House of votes for today’s special interests and form provisions contained in this legislation. that day, the Committee rises. for tomorrow’s votes, but today we Taken together, these provisions would have a Accordingly the Committee rose; and have a historic opportunity to do some- devastating impact on people on the margins the Speaker pro tempore (Mr. WELDON thing different; to cast our vote for the of the work force, many of whom are already of Florida) having assumed the chair, future. working full-time at minimum wage and are Mr. BOEHNER, Chairman of the Com- Mr. Chairman, I know we will do the still unable to make ends meet. The welfare mittee of the Whole House on the State right thing. We will vote for the dig- reform bill passed by the House earlier this of the Union, reported that that Com- nity of senior citizens. We will vote for year would force single mothers off welfare mittee, having had under consideration the opportunity of working Americans. after 2 years without adequate health care or the bill, (H.R. 2491), to provide for rec- We will vote for our children’s future. child care assistance in many cases. Thanks onciliation pursuant to section 105 of We will vote to pass this reconciliation to the cuts in the EITC, welfare mothers who the concurrent resolution on the budg- bill tomorrow. eventually manage to find a jobÐor several et for fiscal year 1996, had come to no Mr. COYNE. Mr. Chairman, I rise today in jobsÐand earn less than $30,000 would have resolution thereon. opposition to this legislation. I do not disagree less disposable income than under current f with the goal of reducing the Federal deficit. I law. Are these policies the mark of a family do, however, disagree with the way in which friendly Congress? I do not think so. The EITC GENERAL LEAVE this legislation attempts to achieve that goal. provides a positive alternative to welfare by Mr. KOLBE. Mr. Speaker, I ask unan- Some changes in Federal programs are making work pay. Apparently, now that the imous consent that all Members may necessary in order to control Federal spending Republicans have succeeded in cutting wel- have 5 legislative days within which to and bring the budget under control, but this fare dramatically, they no longer see any need revise and extend their remarks and in- legislation makes deep cuts in programs that to maintain such a generous work incentive. clude extraneous material in the help average AmericansÐprograms like Medi- Social Darwinism has returned with a venge- RECORD on H.R. 2491, the bill just con- care, Medicaid, the earned income tax credit, ance. sidered. and the low-income housing creditÐin order to And, of course, that is not all. The Repub- The SPEAKER pro tempore. Is there pay for $245 billion in tax cuts that will dis- lican reconciliation bill would phase out the objection to the request of the gen- proportionately benefit the wealthy. I find such low-income housing credit as well. This credit tleman from Arizona? a trade-off totally unacceptable. has helped provide affordable housing for There was no objection. Last week the House passed legislation cut- more than 800,000 low-income families. With- ting $270 billion from the Medicare Program. out the continuation of this credit, less afford- f This legislation has since been incorporated able housing will be available for these fami- SPECIAL ORDERS into the reconciliation bill before us today. This lies, and they will have to spend more of their legislation makes cuts that are much deeper meager income on housing. The SPEAKER pro tempore (Mr. than those necessary to keep Medicare viable And to make matters even worse, the Re- WELDON of Florida). Under the Speak- over the next 10 years. Most Democrats, my- publican reconciliation bill contains language er’s announced policy of May 12, 1995, self included, supported an alternative Medi- that would allow companies to withdraw to $40 and under a previous order of the care reform package that would have made billion from their employees' pension funds House, the following Members will be only $90 billion in cuts in Medicare, but which over the next 5 years. This action could jeop- recognized for 5 minutes each. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10811 The SPEAKER pro tempore. Under a cheaper Mexican labor. But that does If the United States fails to continue previous order of the House, the gen- not mean that many Americans would to insist on its inclusion in these re- tleman from Florida [Mr. BILIRAKIS] is have kept their jobs if we had not gional groups, supporters of the East recognized for 5 minutes. adopted NAFTA. No, instead, Ameri- Asia Economic Caucus (ASEAN plus [Mr. BILIRAKIS addressed the cans would have lost many low-wage China, Japan, and South Korea), which House. His remarks will appear here- jobs to Southeast Asia, South Asia, and has been proposed by the outspoken after in the Extensions of Remarks.] other parts of Central and South Amer- Malaysian Prime Minister Mr. ica. This situation has been greatly ex- Mahathir, may be successful in exclud- f acerbated by the peso crisis in Mexico ing the United States from Asia and The SPEAKER pro tempore. Under a which itself, this Member emphasizes, the Pacific region—the fastest growing previous order of the House, the gen- was in no way caused by the NAFTA market in the world. tleman from Colorado [Mr. SKAGGS] is agreement. Not to be left out of trade liberaliza- recognized for 5 minutes. Mr. Speaker, when this body coura- tion, South and Central America and [Mr. SKAGGS addressed the House. geously adopted the Uruguay Round the Caribbean have recently frag- His remarks will appear hereafter in implementing legislation, this Member mented into several regional free-trade the Extensions of Remarks.] said that many opponents of that his- groups including: f toric trade legislation were in essence Andean Pact: Bolivia, Colombia, Ec- The SPEAKER pro tempore. Under a saying, ‘‘Stop the world, I want to get uador, Peru, and Venezuela. previous order of the House, the gentle- off.’’ Well, this Member stands by that Mercosur or Southern Common Mar- ket: Argentina, Brazil, Paraguay, Uru- woman from Florida [Ms. ROS- comment and believes it still applies guay. LEHTINEN] is recognized for 5 minutes. here today. Central American Common Market: [Ms. ROS-LEHTINEN addressed the The simple truth is that the United States, and the American people, have El Salvador, Guatemala, Honduras, House. Her remarks will appear here- Nicaragua, Costa Rica. after in the Extensions of Remarks.] no good economic choice but to push for expansion of NAFTA gradually and Caricom: Antigua, Barbuda, Baha- f appropriately to the entire Western mas, Barbados, Belize, Dominica, Gre- The SPEAKER pro tempore. Under a Hemisphere or risk being excluded nada, Guyana, Jamaica, Montserrat, previous order of the House, the gentle- from a rapidly liberalizing world econ- Saint Kitts and Nevis, Saint Lucia, woman from North Carolina [Mrs. omy. Economic integration and trade Saint Vincent, the Grenadines, Trini- dad, Tobago. CLAYTON] is recognized for 5 minutes. liberalization is occurring in nearly Clearly, the United States will suffer [Mrs. CLAYTON addressed the House. every part of the world including Eu- economically, politically, and strategi- Her remarks will appear hereafter in rope, Asia, and South America. cally if it chooses to isolate itself from the Extensions of Remarks.] For example, the European Union global and regional trade liberalization [EU] has already created the world’s f efforts. History is replete with exam- largest free-trade zone and has recently ples of countries, like China, who SUPPORT AN ENLARGED NAFTA expanded this block by adding three turned inward instead of facing the dif- TO ENSURE COMPETITIVENESS members of the European Free Trade ficult but necessary challenges of OF AMERICAN EXPORTERS Association (Austria, Finland, and adapting to new circumstances, and Sweden). The EU’s single market in- The SPEAKER pro tempore. Under a therefore greatly suffered. previous order of the House, the gen- cludes 369 million consumers and a With only 250 million people, the tleman from Nebraska [Mr. BEREUTER] gross domestic product [GDP] of about United States cannot afford to refuse is recognized for 5 minutes. $6.3 trillion (1993). This ‘‘Fortress Eu- to trade with emerging markets in the Mr. BEREUTER. Mr. Speaker, today rope,’’ as some call it, is seeking to add world’s developing countries. Through I want to continue the discussion the low-wage Eastern European econo- the year 2025, developing countries are which began in a joint subcommittee mies of Poland, Hungary, the Czech Re- expected to account for 95 percent of hearing of the House International Re- public and Slovakia by the year 2000 the world’s population growth. More lations Committee on trade issues re- and the North African and Middle East- staggering is the fact that only 10 mar- garding Chile and other Latin Amer- ern countries of Morocco, Algeria, kets—those of Mexico, Brazil, Argen- ican countries in light of the North Libya, Tunisia, Egypt, Jordan, Syria, tina, Poland, Turkey, China, South American Free Trade Act [NAFTA] ex- Lebanon and Israel by the year 2010. Korea, Indonesia, India, and South Af- perience. Together, this free-trade zone of low- rica will produce one-half of the No doubt, we will continue to hear a wage labor Eastern European and Med- world’s goods and services by the year plethora of statistics and anecdotes iterranean countries and such high- 2010, but will account for $1 trillion in about the benefits and costs of NAFTA tech, high-wage economies of the EU as incremental U.S. exports during that as well as increasing information about the countries of Germany, France, and same period. the benefits and costs of Chile’s pos- the United Kingdom represent a very Mr. Speaker, this Member strongly sible accession to that agreement. As a formidable competitor to U.S. busi- believes Americans can compete to sell Member, I strongly supported NAFTA. nesses and service industries which are their innovative products and services Now, I strongly support Chile’s acces- attempting to compete in the new anywhere in the world provided they sion to NAFTA. In fact, this Member world economy. are given a fair and equal opportunity said at the time, and will repeat it here Similarly, East Asian countries have without excessive Government inter- today, that in a straightforward eco- begun the process of integrating their ference. Consequently, I vigorously op- nomic decision, it would have been economies through such regional free- pose unilaterally surrendering these fu- more appropriate to accept Chile into a trade groups as the Asia Pacific Eco- ture markets to our industrialized free-trade agreement with the United nomic Cooperation [APEC], which re- competitors in the Asia and Pacific re- States even before Mexico because of cently agreed to establish free trade in gion and in Western Europe by isolat- Chile’s dramatic economic progress the region by 2020 for all of its 18 mem- ing ourselves from regional and global and liberalization. bers, and the Association of Southeast economic liberalization. Accordingly, It is very easy to get lost in all the Asian Nations [ASEAN], which cur- this Member urges his colleagues to statistics about the benefits of NAFTA rently has seven members but is seek- support free-trade agreements, such as or Chile’s accession. But those statis- ing to incorporate other countries such an enlarged NAFTA, which help ensure tics don’t reveal one thing. One should as Vietnam, Cambodia, Laos and that American exporters will be able to ask: ‘‘What would have happened if we Burma. ASEAN has rapidly become the compete on a level playing field. had not passed NAFTA?’’ world’s largest regional trade area f There can be no doubt that many (with over 400 million people) and its American companies have relocated to members recently announced they b 1915 Mexico recently. Undoubtedly, many would lower their tariffs from 0–5 per- The SPEAKER pro tempore (Mr. Americans have lost their jobs to cent shortly after the year 2000. WELDON of Florida). Under a previous H 10812 CONGRESSIONAL RECORD — HOUSE October 25, 1995 order of the House, the gentleman from IMMIGRATION REFORM solution goes far beyond the bounds of New York [Mr. OWENS] is recognized for The SPEAKER pro tempore. Under a any one jurisdiction. It affects our 5 minutes. previous order of the House, the gen- homes, our schools, our businesses, our [Mr. OWENS addressed the House. tleman from Georgia [Mr. BARR] is rec- hospitals, our religious institutions, His remarks will appear hereafter in ognized for 5 minutes. our local government, our State gov- the Extensions of Remarks.] Mr. BARR of Georgia. Mr. Speaker, ernment and, indeed, all taxpayers of earlier this week the Committee on the this country. f Judiciary of this 104th Congress re- Through the work of Representative The SPEAKER pro tempore. Under a ported out, after extended hearings and Sauder’s task force, we hope over the previous order of the House, the gen- even more extended markup, immigra- next several months, Mr. Speaker, to tleman from California [Mr. HORN] is tion reform legislation which for the really delve into the problem of illegal recognized for 5 minutes. very first time in modern times will in immigration and how it affects our [Mr. HORN addressed the House. His fact actually substantively and posi- communities. This work will be espe- remarks will appear hereafter in the tively reform both the system of illegal cially important to me as a Represent- Extensions of Remarks.] immigration and our efforts by this ative from the Seventh District to as- Government to combat this tremen- sist me in crafting the very best legis- f dous drain on our national resources as lation possible, to identify those areas The SPEAKER pro tempore. Under a well as legal immigration. where additional work needs to be previous order of the House, the gen- I am happy to have been a part of done, to helping direct precious tax- tleman from West Virgina [Mr. WISE] is that process, but what makes me even payer resources to combat the problem recognized for 5 minutes. happier is an event that happened in of illegal immigration in America. And [Mr. WISE addressed the House. His my own district in Smyrna, GA, this I salute Representative Sauder for his remarks will appear hereafter in the past Monday evening. This past Mon- work and look forward to working Extensions of Remarks.] day evening, State Representative closely with him as an important part Randy Sauder pulled together for the of the overall legislative effort of this f very first time in the district—and Congress and future Congresses to The SPEAKER pro tempore. Under a probably for the first time in the State come to grips with the crippling prob- previous order of the House, the gen- of Georgia—a comprehensive task force lem of illegal immigration in our coun- tleman from California [Mr. KIM] is to study the effects of illegal immigra- try. recognized for 5 minutes. tion and to develop solutions to the f [Mr. KIM addressed the House. His problem of illegal immigration in our remarks will appear hereafter in the district. NURSING HOME STANDARDS Extensions of Remarks.] Representative Sauder pulled to- PRESS CONFERENCE gether as members of this task force, The SPEAKER pro tempore. Under a f in addition to myself and representa- previous order of the House, the gentle- The SPEAKER pro tempore. Under a tives from other congressional and woman from Connecticut [Ms. previous order of the House, the gentle- Senatorial offices, a vast array of local DELAURO] is recognized for 5 minutes. woman from Texas [Ms. JACKSON-LEE] and State law enforcement officials, Ms. DELAURO. Mr. Speaker, it defies is recognized for 5 minutes. other State representatives, municipal common sense that Republicans are [Ms. JACKSON-LEE addressed the authorities, police chiefs, other law en- stripping away basic protections for el- House. Her remarks will appear here- forcement officials, the regional direc- derly residents of nursing homes, under after in the Extensions of Remarks.] tor of the Immigration and Naturaliza- the guise of cutting the bureaucracy. tion Service, representatives of the De- The fact of the matter is that quality f partment of Labor, other agents and, standards for nursing homes are not The SPEAKER pro tempore. Under a perhaps most importantly of all, a bureaucratic and onerous, they are previous order of the House, the gen- number of private citizens who were in- necessary. These regulations don’t tie tleman from California [Mr. DORNAN] is volved with illegal immigration—com- the hands of nursing homes, they keep recognized for 5 minutes. bating illegal immigration—that is, in nursing homes from tying the hands of [Mr. DORNAN addressed the House. their communities and in their busi- seniors. His remarks will appear hereafter in nesses. Now, I cannot believe that my Re- the Extensions of Remarks.] And through the work of this task publican colleagues are deliberately force, which began last Monday f trying to put nursing home residents evening, on the eve of our historic ac- at risk, so I must conclude that they The SPEAKER pro tempore. Under a tion in the Committee on the Judici- simply don’t understand how these reg- previous order of the House, the gen- ary, passing this important legislation ulations protect nursing home resi- tleman from Texas [Mr. DOGGETT] is to be considered hopefully very soon by dents from neglect and abuse. So, let recognized for 5 minutes. this very body, was a process of really me explain, briefly, how they work in [Mr. DOGGETT addressed the House. coming to grips with and letting those my home State of Connecticut. His remarks will appear hereafter in of us in the Congress responsible for As one Connecticut official com- the Extensions of Remarks.] drafting the laws with regard to both ments in this article: ‘‘Without these f legal and illegal immigration, a com- standards and people to watch them, prehensive look at how illegal immi- these situations will continue. That The SPEAKER pro tempore. Under a gration has affected and continues to man might still be counting the dots previous order of the House, the gen- adversely affect our communities in on the ceiling.’’ tleman from Kansas [Mr. BROWNBACK] terms of the number of illegal aliens The Republican Medicaid plan will is recognized for 5 minutes. involved in criminal activity, in terms mean the end of uniform safety stand- [Mr. BROWNBACK addressed the of the financial burdens placed on our ards for nursing home residents. It will House. His remarks will appear here- communities, not just in the Seventh create a patchwork of standards across after in the Extensions of Remarks.] District of Georgia but indeed in many the country. Some States may do a f respects all across this country, the great job, others may not. For nursing drain on the medical services, the drain home patients it will be a crap shoot. The SPEAKER pro tempore. Under a on our welfare system and, indeed, The quality of your care will depend on previous order of the House, the gen- other problems that are too lengthy to where you live. That’s wrong. Our sen- tleman from Vermont [Mr. SANDERS] is go into here this evening. iors deserve better. recognized for 5 minutes. I would like to take this opportunity Now, my Republican colleagues want [Mr. SANDERS addressed the House. to congratulate Representative Sauder the American people to believe that His remarks will appear hereafter in for his foresightedness in recognizing this budget package is about shared the Extensions of Remarks.] this problem, in recognizing that its sacrifices for a noble purpose. But, October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10813 there is nothing shared in this sacrifice other Member of this body from that Mr. Speaker, Castro came and went and there is nothing noble in its pur- city’s delegation who, even though she but his repression against the Cuban pose. was forced to wait in line to attend the people remains today. This should al- This is a story from Monday’s Con- rally, stated that she did not mind ways be the bottom line when dealing necticut Post which explains how these waiting in line to see Fidel Castro. with Castro, and it is unfortunate that Federal protections worked for two You would think that such enthu- many sold their soul to the devil for, in people. It reads: siasm is reserved only for movie stars, the end, their mission will be unsuc- Paralyzed in a car accident, a 38-year-old but not in this instance. It is a shame cessful. The Cuban people will be free man lay flat on his back for four days in a that Members of this body carry such someday, and they will remember, to- Connecticut nursing home, able only to low respect for our democratic system gether with history, who stood for free- count the dots on ceiling tiles * ** that they would salivate over the lead- dom and who preferred to prostitute In another Connecticut nursing home, an themselves to the whims of the tyrant. elderly man who suffered a sudden onset of er who has gone to great extremes to dementia was overdrugged by staff to the destroy democracies around the world, f point where he was unrecognizable and and who stills speaks negatively of po- The SPEAKER pro tempore. Under a couldn’t function * * * litical pluralism. previous order of the House, the gen- In both cases, it took intervention by state Sadly, another one of my colleagues tleman from Michigan [Mr. STUPAK] is ombudsmen wielding copies of federal nurs- has accepted Castro’s invitation to ing home standards to correct the problems recognized for 5 minutes. travel to Cuba, along with a delegation and protect the residents. [Mr. STUPAK addressed the House. of representatives of American cor- His remarks will appear hereafter in And, there is nothing revolutionary porations. How can our Federal official the Extensions of Remarks.] about returning America’s seniors to authorize such a business trip? Let us the health care dark ages of bed re- hop that they do not. f straints and mind-altering drugs. Mr. Speaker, similarly outrageous The SPEAKER pro tempore (Mr. f was the reception that the United Na- WELDON of Florida). Under a previous CASTRO’S TRAVELING ROAD SHOW tions gave Castro. Secretary General order of the House, the gentleman from Boutros Boutros-Ghali warmly em- New Jersey [Mr. PALLONE] is recog- The SPEAKER pro tempore. Under a braced Castro as he entered the organi- nized for 5 minutes. previous order of the House, the gentle- zation. This shameful portrayal made woman from Florida [Ms. ROS- [Mr. PALLONE addressed the House. by the United Nations leader is symp- LEHTINEN] is recognized for 5 minutes. His remarks will appear hereafter in tomatic of the hypocrisy embodied in Ms. ROS–LEHTINEN. Mr. Speaker, the Extensions of Remarks.] that body, as it speaks of freedom and this week the Nation was witness to a f human rights, but then goes ahead and great traveling road show which ar- turns its back on the millions of Cu- The SPEAKER pro tempore. Under a rived from Havana. Its main star was bans who suffer under Fidel Castro. previous order of the House, the gen- the Cuban tyrant Fidel Castro, in his tleman from Indiana [Mr. ROEMER] is never ending campaign to reform his This same organization now wants to implement global taxes to fund its in- recognized for 5 minutes. image from a ruthless dictator, which [Mr. ROEMER addressed the House. he is, to a harmless politician, which efficient bureaucracy. Reports have emerged recently that the United Na- His remarks will appear hereafter in he is not. the Extensions of Remarks.] Even though Castro’s acting is cru- tions wants to implement taxes on elly trite and cynically predictable, it international currency and stock f hypnotized much of American media, transactions, as a means to gain great- er revenue for its activities. This ini- CONFERENCE REPORT ON H.R. 2020, business leaders and, I am disappointed TREASURY, POSTAL SERVICE, to say, some Members of our body. It tiative would gravely affect American citizens and businesses who already are AND GENERAL GOVERNMENT AP- was quite revolting to see how this dic- PROPRIATIONS ACT, 1996 tator, who leads a regime that our the biggest contributors to the United State Department characterized as Nations. This is a dangerous phenome- Mr. LIGHTFOOT submitted the fol- ‘‘sharply restricting basic political and non which grossly expands the scope lowing conference report and state- civil rights, including the rights of and mission of the organization and ment on the bill (H.R. 2020) making ap- citizens to change their government, one which the Congress should raise its propriations for the Treasury Depart- the freedoms of speech, press, associa- voice against. ment, the U.S. Postal Service, the Ex- tion, assembly and movement, as well The great missing link in Castro’s ecutive Office of the President, and as the right to privacy and various visit were questions about his regime. certain independent agencies, for the workers rights,’’ well, he was warmly None of the American media, congres- fiscal year ending September 30, 1996, greeted in the Bronx by three of my sional Members or business leaders and for other purposes: bothered to ask Castro about the re- colleagues from the other side of the CONFERENCE REPORT (H. REPT. 104–291) pressive nature of his regime. Nobody aisle who hail from New York City, in- The Committee of Conference on the dis- cluding the dean of the city’s delega- asked him about the political pris- agreeing votes of the two Houses on the tion. oners. No one asked him about the fate amendments of the Senate to the bill (H.R. This group of Congressman ignored of Rev. Orson Vila Santoyo, who con- 2020) ‘‘making appropriations for the Treas- the well-known repression of the Cas- tinues imprisoned for practicing his re- ury Department, the United States Postal tro regime, repression which is con- ligious faith. No one asked him of the Service, the Executive Office of the Presi- demned by human rights groups like fate of Nilvio Labrada, who was put in dent, and certain Independent Agencies, for Amnesty International, which said a mental institution for demonstration the fiscal year ending September 30, 1996, and against Fidel Castro. No one asked Cas- for other purposes,’’ having met, after full about Castro’s regime that ‘‘members and free conference, have agreed to rec- of unofficial political human rights and tro when he would leave power, con- ommend and do recommend to their respec- trade union groups continue to face im- duct elections, allow freedom of expres- tive Houses as follows: prisonment, short-term detention and sion, allow opposition on the island. That the Senate recede from its amend- frequent harassment.’’ Nobody. Instead, those who fraternized ments numbered 4, 10, 30, 32, 33, 39, 41, 42, 44, with Castro had a mission. Business 50, 51, 64, 73, 83, 85, 87, 89, 90, 91, 98, 99, 110, 111, b 1930 leaders want to make a quick buck off 118, 124, 134, 137, 138, and 141. Instead, the congressional groupies the Cuban workers sweat in Castro’s That the House recede from its disagree- accepted Castro with open arms. My plantation economy. The media contin- ment to the amendments of the Senate num- Democrat colleague from the Bronx ued its romanticized description of bered 1, 8, 9, 11, 13, 14, 16, 19, 21, 25, 28, 29, 34, 35, 36, 38, 40, 45, 49, 53, 54, 55, 61, 63, 66, 71, 72, hosted a rally for the dictator on Mon- Castro, ignoring his human rights of- 75, 79, 80, 81, 82, 86, 92, 94, 95, 96, 100, 102, 103, day evening telling the Cuban tyrant fenses, and my liberal congressional 105, 106, 108, 112, 113, 114, 115, 116, 117, 119, 120, that he would always be welcomed in colleagues were just willing political 121, and 123, and agree to the same. that city. My favorite however, was an- pawns in Castro’s propaganda. Amendment No. 2: H 10814 CONGRESSIONAL RECORD — HOUSE October 25, 1995 That the House recede from its disagree- In lieu of the sum proposed by said amend- until the Secretary of the Treasury provides a ment to the amendment of the Senate num- ment, insert: $184,300,000; and the Senate report to the Committees on Appropriations of bered 2, and agree to the same with an agree to the same. the House and the Senate that (1) with explicit amendment as follows: Amendment No. 15: decision criteria, identifies, evaluates, and In lieu of the matter stricken and inserted That the House recede from its disagree- prioritizes all systems investments planned for in said amendment insert: $105,929,000, of ment to the amendment of the Senate num- fiscal year 1996, (2) provides a schedule for suc- which up to $500,000 shall be available to reim- bered 15, and agree to the same with an cessfully mitigating deficiencies identified by the burse the District of Columbia Metropolitan Po- amendment as follows: General Accounting Office in its April 1995 re- lice Department for personnel costs incurred by Restore the matter stricken in said amend- port to the Committees, (3) presents a milestone the Metropolitan Police Department between ment, amended to read as follows: : Provided schedule for development and implementation May 19, 1995 and September 30, 1995 as a result further, That no funds appropriated herein program, and (4) presents a plan to expand the of the closing to vehicular traffic of Pennsylva- shall be used to pay administrative expenses or utilization of external expertise for systems de- nia Avenue Northwest and other streets in the the compensation of any officer or employee of velopment and total program integration; and vicinity of the White House: Provided, That Sec- the United States to implement an amendment the Senate agree to the same. tion 640 of Title VI of the Treasury Postal Serv- or amendments to 27 CFR 178.118 or to change Amendment No. 26: ice and General Government Appropriations the definition of ‘‘Curios or relics’’ in 27 CFR That the House recede from its disagree- Act, 1995 (Public Law 103–329, 108 Stat. 2432), is 178.11 or remove any item from ATF Publication ment to the amendment of the Senate num- amended by adding at the end thereof the fol- 5300.11 as it existed on January 1, 1994; and the bered 26, and agree to the same with an lowing new sentence: ‘‘This section shall not Senate agree to the same. amendment as follows: apply to any claim where the employee has re- Amendment No. 17: In lieu of the sum proposed by said amend- ceived any compensation for overtime hours That the House recede from its disagree- ment, insert: $531,944,000; and the Senate worked during the period covered by the claim ment to the amendment of the Senate num- agree to the same. under any other provision of law, including, but bered 17, and agree to the same with an Amendment No. 27: not limited to, 5 U.S.C. 5545(c), or to any claim amendment as follows: That the House recede from its disagree- for compensation for time spent commuting be- In lieu of the matter stricken and inserted ment to the amendment of the Senate num- tween the employee’s residence and duty sta- by said amendment, : Provided further, That bered 27, and agree to the same with an tion.’’; and the Senate agree to the same. the Commissioner of the Customs Service amendment as follows: Amendment No. 3: designate a single individual to be port di- In lieu of the matter stricken and inserted That the House recede from its disagree- rector of all United States Government ac- in said amendment, insert: ment to the amendment of the Senate num- tivities at two ports of entry, one on the (a) As authorized by section 190001(e), bered 3, and agree to the same with an southern border and one on the northern bor- $69,314,000 of which $25,690,000 shall be avail- amendment as follows: der: Provided further, That $750,000 shall be able to the United States Customs Service for ex- In lieu of the matter proposed in said available for additional part-time and tem- penses associated with ‘‘Operation Hardline’’; amendment, insert: porary positions in the Honolulu Customs of which $21,010,000 shall be available to the TREASURY BUILDINGS AND ANNEX REPAIR AND District ; and the Senate agree to the same. Bureau of Alcohol, Tobacco and Firearms of RESTORATION Amendment No. 18: which no less than $14,410,000 shall be available For the repair, alteration, and improvement of That the House recede from its disagree- to annualize the salaries and related costs for the Treasury Building and annex, and the Se- ment to the amendment of the Senate num- the fiscal year 1995 supplemental initiative, and cret Service Headquarters Building, $21,491,000, bered 18, and agree to the same with an of which no less than $3,500,000 shall be avail- to remain available until expended. amendment as follows: able for administering the Gang Resistance Edu- And the Senate agree to the same. In lieu of the matter proposed in said cation and Training program, and of which Amendment No. 5: amendment, insert: $64,843,000 which ; and $3,100,000 shall be available for ballistics tech- That the House recede from its disagree- the Senate agree to the same. nologies; of which $21,600,000 shall be available ment to the amendment of the Senate num- Amendment No. 20: to the United States Secret Service, of which no bered 5, and agree to the same with an That the House recede from its disagree- less than $1,600,000 shall be available for en- amendment as follows: ment to the amendment of the Senate num- hancing forensics technology to aid missing and In lieu of the sum named in said amend- bered 20, and agree to the same with an exploited children investigations; and of which ment, insert: $10,000,000; and the Senate amendment as follows: $1,014,000 shall be available to the Federal Law agree to the same. In lieu of the sum named in said amend- Enforcement Training Center; and ; and the Amendment No. 6: ment, insert: $1,723,764,000 ; and the Senate Senate agree to the same. That the House recede from its disagree- agree to the same. Amendment No. 31: ment to the amendment of the Senate num- Amendment No. 22: That the House recede from its disagree- bered 6, and agree to the same with an That the House recede from its disagree- ment to the amendment of the Senate num- amendment as follows: ment to the amendment of the Senate num- bered 31, and agree to the same with an Restore the matter stricken in said amend- bered 22, and agree to the same with an amendment as follows: ment amended to read as follows: travel ex- amendment as follows: In lieu of the section number named in said Restore the matter stricken in said amend- penses of non-Federal law enforcement person- amendment, insert: 107; and the Senate agree ment, amended to read as follows: : Provided, nel to attend meetings concerned with financial to the same. intelligence activities, law enforcement, and fi- That $13,000,000 shall be used to initiate a pro- Amendment No. 37: nancial regulation; gram to utilize private counsel law firms and That the House recede from its disagree- And the Senate agree to the same. debt collection agencies in the collection activi- ment to the amendment of the Senate num- Amendment No. 7: ties of the Internal Revenue Service in compli- bered 37, and agree to the same with an That the House recede from its disagree- ance with section 104 of this Act and, on page amendment as follows: ment to the amendment of the Senate num- 13, line 3, of the House of Representatives en- In lieu of the matter inserted in said bered 7, and agree to the same with an grossed bill, H.R. 2020, after ‘‘which’’ insert amendment, insert: amendment as follows: ‘‘up to’’ and, on line 4, after ‘‘Program,’’ de- In lieu of the matter stricken and inserted lete ‘‘no amount of which shall be available COUNCIL OF ECONOMIC ADVISERS by said amendment, insert: $22,198,000; Pro- for IRS administrative costs,’’ ; and the Sen- SALARIES AND EXPENSES vided, That notwithstanding any other provi- ate agree to the same. For necessary expenses of the Council in car- sion of law, the Director of the Financial Crimes Amendment No. 23: rying out its functions under the Employment Enforcement Network may procure up to That the House recede from its disagree- Act of 1946 (15 U.S.C. 1021), $3,180,000. $500,000 in specialized, unique or novel auto- ment to the amendment of the Senate num- And the Senate agree to the same. matic data processing equipment, ancillary bered 23, and agree to the same with an Amendment No. 43: equipment, software, services, and related re- amendment as follows: That the House recede from its disagree- sources from commercial vendors without regard In lieu of the matter stricken and inserted ment to the amendment of the Senate num- to otherwise applicable procurement laws and by said amendment, insert: $1,527,154,000, of bered 43, and agree to the same with an regulations and without full and open competi- which no less than $695,000,000 shall be avail- amendment as follows: tion, utilizing procedures best suited under the able for tax systems modernization activities ; Restore the matter stricken by said circumstances of the procurement to efficiently and the Senate agree to the same. amendment, amended to read as follows: fulfill the agency’s requirements: Provided fur- Amendment No. 24: OFFICE OF NATIONAL DRUG CONTROL POLICY ther, That funds appropriated in this account That the House recede from its disagree- may be used to procure personal services con- ment to the amendment of the Senate num- SALARIES AND EXPENSES tracts; and the Senate agree to the same. bered 24, and agree to the same with an (INCLUDING TRANSFER OF FUNDS) Amendment No. 12: amendment as follows: For necessary expenses of the Office of Na- That the House recede from its disagree- In lieu of the matter stricken and inserted tional Drug Control Policy; for research activi- ment to the amendment of the Senate num- in said amendment, insert: : Provided, That of ties pursuant to title I of Public Law 100–690; bered 12, and agree to the same with an the funds appropriated for tax systems mod- not to exceed $8,000 for official reception and amendment as follows: ernization, $100,000,000 may not be obligated representation expenses; for participation in October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10815 joint projects or in the provision of services on bered 52, and agree to the same with an Act, half shall be used for telecommuting centers matters of mutual interest with nonprofit, re- amendment as follows: in the State of Virginia and half shall be used search, or public organizations or agencies, with In lieu of the sum proposed by said amend- for telecommuting centers in the State of Mary- or without reimbursement; $23,500,000, of which ment, insert: $20,542,000; and the Senate land: Provided further, That of the funds made $16,000,000, to remain available until expended, agree to the same. available for the District of Columbia, Southeast shall be available to the Counter-Drug Tech- Amendment No. 56: Federal Center, under the heading, ‘‘Real Prop- nology Assessment Center for counternarcotics That the House recede from its disagree- erty Activities, Federal Buildings Fund, Limita- research and development projects and shall be ment to the amendment of the Senate num- tions on Availability of Revenue’’ in Public Law available for transfer to other Federal depart- bered 56, and agree to the same with an 101–509, $55,000,000 are rescinded: Provided fur- ments or agencies; and of the funds made avail- amendment as follows: ther, That the limitation on the availability of able to the Counter-Drug Technology Assess- In lieu of the sum proposed by said amend- revenue contained in such Act is reduced by ment Center, $600,000 shall be transferred to the ment, insert: $5,066,149,000; and the Senate $55,000,000; and the Senate agree to the same. Drug Enforcement Administration for the El agree to the same. Amendment No. 60 Paso Intelligence Center: Provided, That the Of- Amendment No. 57: That the House recede from its disagree- fice is authorized to accept, hold, administer, That the House recede from its disagree- ment to the amendment of the Senate num- and utilize gifts, both real and personal, for the ment to the amendment of the Senate num- bered 60, and agree to the same with an purpose of aiding or facilitating the work of the bered 57, and agree to the same with an amendment as follows: Office. amendment as follows: In lieu of the sum proposed by said amend- And the Senate agree to the same. In lieu of the sum proposed by said amend- ment, insert: $637,000,000; and the Senate Amendment No. 46: ment, insert: $545,002,000; and the Senate agree to the same. That the House recede from its disagree- agree to the same. Amendment No. 62 ment to the amendment of the Senate num- Amendment No. 58: That the House recede from its disagree- bered 46, and agree to the same with an That the House recede from its disagree- ment to the amendment of the Senate num- amendment as follows: ment to the amendment of the Senate num- bered 62, and agree to the same with an In lieu of the matter proposed by said bered 58, and agree to the same with an amendment as follows: amendment, insert: amendment as follows: In lieu of the matter stricken and inserted FEDERAL DRUG CONTROL PROGRAMS In lieu of the matter stricken and inserted by said amendment, insert: by said amendment, insert: Repairs and Alterations: HIGH INTENSITY DRUG TRAFFICKING AREAS New Construction: Arkansas: PROGRAM Colorado: Little Rock, Federal Building, $7,551,000 (INCLUDING TRANSFER OF FUNDS) Lakewood, Denver Federal Center, U.S. Geo- California: For necessary expenses of the Office of Na- logical Survey Lab Building, $25,802,000 Sacramento, Federal Building (2800 Cottage tional Drug Control Policy’s High Intensity Florida: Way), $13,636,000 Drug Trafficking Areas Program, $103,000,000 Tallahassee, U.S. Courthouse Annex, District of Columbia: for drug control activities consistent with the $24,015,000 ICC/Connecting Wing Complex/Customs approved strategy for each of the designated Georgia: (phase 2/3), $58,275,000 High Intensity Drug Trafficking Areas, of Savannah, U.S. Courthouse Annex, $2,597,000 Illinois: which no less than $55,000,000 shall be trans- Louisiana: Chicago, Federal Center, $45,971,000 ferred to State and local entities for drug control Lafayette, Federal Building and U.S. Court- Maryland: activities; and of which up to $48,000,000 may be house, $29,565,000 Woodlawn, SSA East High-Low Buildings, transferred to Federal agencies and departments Maryland: $17,422,000 at a rate to be determined by the Director: Pro- Prince Georges County, Food and Drug Ad- North Dakota: vided, That the funds made available under this ministration, $55,000,000 Bismarck, Federal Building, Post Office and head shall be obligated within 90 days of the Nebraska: U.S. Courthouse, $7,119,000 date of enactment of this Act. Omaha, Federal Building and U.S. Court- Pennsylvania: And the Senate agree to the same. house, $53,424,000 Philadelphia, Byrne-Green Complex, Amendment No. 47: New Mexico: $30,909,000 That the House recede from its disagree- Albuquerque, Federal Building and U.S. Philadelphia, SSA Building, Mid-Atlantic ment to the amendment of the Senate num- Courthouse, $6,126,000 Program Service Center, $11,376,000 bered 47, and agree to the same with an New York: Puerto Rico: amendment as follows: Central Islip, Federal Building and U.S. Old San Juan, Post Office and U.S. Court- In lieu of the matter proposed by said Courthouse, $189,102,000 house, $25,701,000 amendment, insert: North Dakota: Texas: ADVISORY COMMISSION ON INTERGOVERNMENTAL Pembina, Border Station, $11,113,000 Dallas, Federal Building (Griffin St.), RELATIONS Pennsylvania: $5,641,000 Scranton, Federal Building and U.S. Court- Washington: SALARIES AND EXPENSES house Annex, $24,095,000 Richland, Federal Building, U.S. Post Office, For necessary expenses of the Advisory Com- South Carolina: and Courthouse, $10,000,000 mission on Intergovernmental Relations, Columbia, U.S. Courthouse Annex, $3,562,000 Nationwide: $784,000, of which $334,000 is to carry out the Texas: Chlorofluorocarbons Program, $43,533,000 provisions of Public Law 104–4, and of which Austin, Veterans Affairs Annex, $7,940,000 Elevator Program, $13,109,000 $450,000 shall be available only for the purposes Brownsville, Federal Building and U.S. Energy Program, $20,000,000 of the prompt and orderly termination of the Courthouse, $27,452,00 Advance Design, $22,000,000; and the Senate Advisory Commission on Intergovernmental Re- Washington: agree to the same. lations. Point Roberts, U.S. Border Station, $3,516,000 Amendment No. 65 And the Senate agree to the same. Seattle, U.S. Courthouse, $5,600,000 That the House recede from its disagree- Amendment No. 48: West Virginia: ment to the amendment of the Senate num- That the House recede from its disagree- Martinsburg, Internal Revenue Service Com- bered 65, and agree to the same with an ment to the amendment of the Senate num- puter Center, $63,408,000 amendment as follows: bered 48, and agree to the same with an Non-prospectus Projects Program, $12,685,000; In lieu of the proposed by said amendment, amendment as follows: and the Senate agree to the same. insert: $2,326,200,000; and the Senate agree to In lieu of the matter proposed by said Amendment No. 59: the same. amendment, insert: That the House recede from its disagree- Amendment No. 67: ADMINISTRATIVE CONFERENCE OF THE UNITED ment to the amendment of the Senate num- That the House recede from its disagree- STATES bered 59, and agree to the same with an ment to the amendment of the Senate num- SALARIES AND EXPENSES amendment as follows: bered 67, and agree to the same with an For necessary expenses of the Administrative In lieu of the matter stricken and inserted amendment as follows: Conference of the United States, established by said amendment, insert: : Provided further, Restore the matter stricken by said under subchapter V of chapter 5 of title 5, Unit- That the $6,000,000 under the heading of amendment amended to read as follows: : ed States Code, $600,000: Provided, That these nonprospectus construction projects, made Provided further, That the Administrator is au- funds shall only be available for the purposes of available in Public Laws 102–393 and 103–123 for thorized to enter into and perform such leases, the prompt and orderly termination of the Ad- the acquisition, lease, construction and equip- contracts, or other transactions with any agen- ministrative Conference of the United States by ping of flexiplace work telecommuting centers, is cy or instrumentality of the United States, the February 1, 1996. hereby increased by $5,000,000 from funds made several States, or the District of Columbia, or And the Senate agree to the same. available in this Act for non-prospectus con- with any person, firm, association, or corpora- Amendment No. 52: struction projects, all of which shall remain tion, as may be necessary to implement the trade That the House recede from its disagree- available until expended: Provided further, center plan at the Federal Triangle Project; and ment to the amendment of the Senate num- That of the $5,000,000 made available by this the Senate agree to the same. H 10816 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Amendment No. 68: Amendment No. 78: In lieu of the matter stricken and inserted That the House recede from its disagree- That the House recede from its disagree- in said amendment, insert: (retention of re- ment to the amendment of the Senate num- ment to the amendment of the Senate num- ceipts is for the circulating operations and pro- bered 68, and agree to the same with an bered 78, and agree to the same with an grams): Provided further, That the Secretary of amendment as follows: amendment as follows: the Treasury shall; and the Senate agree to In lieu of the sum proposed by said amend- In lieu of the first section number in said the same. ment, insert: $5,066,149,000; and the Senate amendment, insert: 9; and the Senate agree Amendment No. 107: agree to the same. to the same. That the House recede from its disagree- Amendment No. 69: Amendment No. 84: ment to the amendment of the Senate num- That the House recede from its disagree- That the House recede from its disagree- bered 107, and agree to the same with an ment to the amendment of the Senate num- ment to the amendment of the Senate num- amendment as follows: bered 69, and agree to the same with an bered 84, and agree to the same with an In lieu of the matter stricken and inserted amendment as follows: amendment as follows: by said amendment, insert: Provided further, In lieu of the matter stricken and inserted In lieu of the matter proposed by said That provisions of law governing procurement in said amendment, insert: amendment, insert: $88,000,000, of which not or public contracts shall not be applicable to the to exceed $1,000,000 shall be made available for OPERATING EXPENSES procurement of goods or services necessary for the establishment of health promotion and dis- carrying out Mint programs and operations; and For expenses authorized by law, not otherwise ease prevention programs for Federal employees; the Senate agree to the same. provided for, necessary for asset management and the Senate agree to the same. Amendment No. 109: activities; utilization of excess and disposal of Amendment No. 88: That the House recede from its disagree- surplus personal property; transportation man- That the House recede from its disagree- ment to the amendment of the Senate num- agement activities; procurement and supply ment to the amendment of the Senate num- bered 109, and agreed to the same with an management activities; Government-wide and bered 88, and agree to the same with an amendment as follows: internal responsibilities relating to automated amendment as follows: In lieu of the matter proposed by said data management, telecommunications, informa- Restore the matter stricken in said amend- amendment, insert: tion resources management, and related activi- ment, amended to read as follows: SEC. 524. No funds appropriated by this Act ties; utilization survey, deed compliance inspec- Section 1. Section 1104 of title 5, United States shall be available to pay for an abortion, or the tion, appraisal, environmental and cultural Code, is amended— administrative expenses in connection with any analysis, and land use planning functions per- (1) in subsection (a)— health plan under the Federal employees health taining to excess and surplus real property; (A) in paragraph (2)— benefit program which provides an benefits or agency-wide policy direction; Board of Contract (i) by inserting after ‘‘title’’ the following: ‘‘, coverage for abortions, after the last day of the Appeals; accounting, records management, and the cost of which examinations shall be reim- contract currently in force for any such nego- other support services incident to adjudication bursed by payments from the agencies employ- tiated plan. of Indian Tribal Claims by the United States ing such judges to the revolving fund estab- SEC. 525. The provision of section 524 shall not Court of Federal Claims; services as authorized lished under section 1304(e)’’; and apply where the life of the mother would be en- by 5 U.S.C. 3109; and not to exceed $5,000 for of- (ii) by striking the semicolon at the end of dangered if the fetus were carried to term, or ficial reception and representation expenses; paragraph (2) and inserting in lieu thereof a pe- that the pregnancy is the result of an act of $119,091,000. riod; and rape or incest. And the Senate agree to the same. (B) by striking the matter following para- And the Senate agree to the same. Amendment No. 70: graph (2) through ‘‘principles.’’; and Amendment No. 122: That the House recede from its disagree- (2) in subsection (b) by adding at the end the That the House recede from its disagree- ment to the amendment of the Senate num- following new paragraph: ment to the amendment of the Senate num- bered 70, and agree to the same with an ‘‘(4) At the request of the head of an agency bered 122, and agree to the same with an amendment as follows: to whom a function has been delegated under amendment as follows: In lieu of the sum proposed by said amend- subsection (a) (2), the Office may provide assist- Restore the matter stricken by said ment, insert: $33,274,000; and the Senate ance to the agency in performing such function. amendment, amended to read as follows: agree to the same. Such assistance shall, to the extent determined SEC. 627. (a) None of the funds made available Amendment No. 74: appropriate by the Director of the Office, be per- in this Act may be obligated or expended for any That the House recede from its disagree- formed on a reimbursable basis through the re- employee training when it is made known to the ment to the amendment of the Senate num- volving fund established under section 1304(e).’’. Federal official having authority to obligate or bered 74, and agree to the same with an And the Senate agree to the same. expend such funds that such employee train- amendment as follows: Amendment No. 93: ing— That the House recede from its disagree- In lieu of the section number named, in- (1) does not meet identified needs for knowl- ment to the amendment of the Senate num- sert: 5; and the Senate agree to the same. edge, skills, and abilities bearing directly upon bered 93, and agree to the same with an Amendment No. 76: the performance of official duties; amendment as follows: That the House recede from its disagree- (2) contains elements likely to induce high lev- In lieu of the sum proposed by said amend- ment to the amendment of the Senate num- els of emotional response or psychological stress ment, insert: $33,269,000; and the Senate bered 76, and agree to the same with an in some participants; agree to the same. (3) does not require prior employee notifica- amendment as follows: Amendment No. 97: tion of the content and methods to be used in In lieu of the matter proposed in said That the House recede from its disagree- the training and written end of course evalua- amendment, insert: ment to the amendment of the Senate num- tion; SEC. 7. Notwithstanding any provision of this bered 97, and agree to the same with an (4) contains any methods or content associ- or any other Act, during the fiscal year ending amendment as follows: ated with religious or quasi-religious belief sys- September 30, 1996, and thereafter, no funds Restore the matter stricken by said tems or ‘‘new age’’ belief systems as defined in may be obligated or expended in any way for amendment, amended to read as follows: Equal Employment Opportunity Commission No- the purpose of the sale, excessing, surplusing, or SEC. 512. Notwithstanding any provision of tice N–195.022, dated September 2, 1988; disposal of lands in the vicinity of Norfork this or any other Act, during the fiscal year (5) is offensive to, or designed to change, par- Lake, Arkansas, administered by the Corps of ending September 30, 1996, and thereafter, no ticipants’ personal values or lifestyle outside the Engineers, Department of the Army, without the funds may be obligated or expended in any way workplace; or specific approval of the Congress. to withdraw the designation of the Virginia In- (6) includes content related to human And the Senate agree to the same. land Port at Front Royal, Virginia, as a United immunodeficiency virus/acquired immune defi- Amendment No. 77: States Customs Service port of entry. ciency syndrome (HIV/AIDS) other than that That the House recede from its disagree- And the Senate agree to the same. necessary to make employees more aware of the ment to the amendment of the Senate num- Amendment No. 101: medical ramifications of HIV/AIDS and the bered 77, and agree to the same with an That the House recede from its disagree- workplace rights of HIV-positive employees. amendment as follows: ment to the amendment of the Senate num- (b) Nothing in this section shall prohibit, re- In lieu of the matter proposed in said bered 101, and agree to the same with an strict, or otherwise preclude an agency from amendment, insert: amendment as follows: conducting training bearing directly upon the SEC. 8. Notwithstanding any provision of this In lieu of the matter proposed by said performance of official duties. or any other Act, during the fiscal year ending amendment, insert: in fiscal year 1996 for And the Senate agree to the same. September 30, 1996, and thereafter, no funds those operations and programs previously pro- Amendment No. 125: may be obligated or expended in any way for vided for by appropriation; and the Senate That the House recede from its disagree- the purpose of the sale, excessing, surplusing, or agree to the same. ment to the amendment of the Senate num- disposal of lands in the vicinity of Bull Shoals Amendment No. 104: bered 125, and agree to the same with an Lake, Arkansas, administered by the Corps of That the House recede from its disagree- amendment as follows: Engineers, Department of the Army, without the ment to the amendment of the Senate num- In lieu of the first section number in said specific approval of the Congress. bered 104, and agree to the same with an amendment, insert: 628; and the Senate agree And the Senate agree to the same. amendment as follows: to the same. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10817 Amendment No. 126: (A) has an application pending before the De- (B) A motion to discharge may be made only That the House recede from its disagree- partment of Transportation for approval under by an individual favoring the resolution, and is ment to the amendment of the Senate num- section 41102 or 41110(e) of title 39, United States privileged in the Senate; and debate thereon bered 126, and agree to the same with an Code, before August 1, 1995; and shall be limited to not more than 1 hour, the amendment as follows: (B) would meet the requirements of such sub- time to be divided in the Senate equally be- In lieu of the matter proposed by said paragraph if such application were approved tween, and controlled by, the majority leader amendment, insert: and such certificate were purchased. and the minority leader or their designees. SEC. 629. (a) None of the funds appropriated (c) Section 41901(g) of title 49, United States (3) FLOOR CONSIDERATION IN THE SENATE.—(A) by this or any other Act may be expended by Code, is repealed. A motion in the Senate to proceed to the consid- And the Senate agree to the same. any Federal Agency to procure any product or eration of a resolution shall be privileged. service that is subject to the provisions of Public Amendment No. 129: That the House recede from its disagree- (B) Debate in the Senate on a resolution, and Law 89–306 and that will be available under the all debatable motions and appeals in connection procurement by the Administrator of General ment to the amendment of the Senate num- bered 129, and agree to the same with an therewith, shall be limited to not more than 4 Services known as ‘‘FTS2000’’ unless— hours, to be equally divided between, and con- (1) such product or service is procured by the amendment as follows: In lieu of the matter proposed by said trolled by, the majority leader and the minority Administrator of General Services as part of the leader or their designees. procurement known as ‘‘FTS2000’’; or amendment, insert: (2) that agency establishes to the satisfaction SEC. 632. LIMITATION ON USE OF FUNDS FOR (C) Debate in the Senate on any debatable of the Administrator of General Services that— THE PROVISION OF CERTAIN FOR- motion or appeal in connection with a resolu- EIGN ASSISTANCE. (A) that agency’s requirements for such pro- tion shall be limited to not more than 20 min- (a) IN GENERAL.—Notwithstanding any other curement are unique and cannot be satisfied by utes, to be equally divided between, and con- provision of law, none of the funds made avail- property and service procured by the Adminis- trolled by, the mover and the manager of the able by this Act for the Department of the trator of General Services as part of the procure- resolution, except that in the event the manager Treasury shall be available for any activity or ment known as ‘‘FTS2000’’; and of the resolution is in favor of any such motion (B) the agency procurement pursuant to such for paying the salary of any Government em- or appeal, the time in opposition thereto, shall delegation, would be cost-effective and would ployee where funding an activity or paying a be controlled by the minority leader or his des- not adversely affect the cost-effectiveness of the salary to a Government employee would result ignee. Such leaders, or either of them, may, from FTS2000 procurement. in a decision, determination, rule, regulation, or time under their control on the passage of a res- (b) After July 31, 1996, subsection (a) shall policy that would permit the Secretary of the olution, allot additional time to any Senator apply that if the Administrator of General Serv- Treasury to make any loan or extension of cred- during the consideration of any debatable mo- ices has reported that the FTS2000 procurement it under section 5302 of title 31, United States tion or appeal. is producing prices that allow the Government Code, with respect to a single foreign entity or (D) A motion in the Senate to further limit de- to satisfy its requirements for such procurement government of a foreign country (including bate on a resolution, debatable motion, or ap- in the most cost-effective manner. agencies or other entities of that government)— peal is not debatable. No amendment to, or mo- (c) The Comptroller General of the United (1) with respect to a loan or extension of cred- tion to recommit, a resolution is in order in the States shall conduct and deliver a comprehen- it for more than 60 days, unless the President Senate. sive analysis of the cost of the Federal govern- certifies to the Committee on Banking, Housing, (4) In the case of a resolution, if prior to the ment of all Federal agency telecommunications and Urban Affairs of the Senate and the Com- passage by one House of a resolution of that services and traffic, by agency, and provide mittee on Banking and Financial Services of the House, that House receives a resolution with re- such report to the House and Senate Committees House of Representatives that— spect to the same matter from the other House, (A) there is no projected cost (as that term is on Appropriations by no later than May 31, then— defined in section 502 of the Federal Credit Re- 1996: Provided, That such report shall (1) iden- (A) the procedure in that House shall be the form Act of 1990) to the United States from the tify which agencies are using FTS2000 systems; same as if no resolution had been received from proposed loan or extension of credit; and (2) determine whether or not such usage is cost- (B) any proposed obligation or expenditure of the other House; but effective; and (3) provide a comparison of tele- United States funds to or on behalf of the for- (B) the vote on final passage shall be on the communication costs between agencies that use eign government is adequately backed by an as- resolution of the other House. or do not use FTS2000. sured source of repayment to ensure that all (5) For purposes of this subsection, the term And the Senate agree to the same. ‘‘joint resolution’’ means only a joint resolution Amendment No. 127: United States funds will be repaid; and (2) other than as provided by an Act of Con- of the 2 Houses of Congress, the matter after the That the House recede from its disagree- gress, if that loan or extension of credit would resolving clause of which is as follows: ‘‘That ment to the amendment of the Senate num- result in expenditures and obligations, including the Congress disapproves the action of the Presi- bered 127, and agree to the same with an contingent obligations, aggregating more than dent under section 632(b) of the Treasury, Post- amendment as follows: al Service, and General Government Appropria- In lieu of the first section number named $1,000,000,000 with respect to that foreign coun- tions Act, 1996, notice of which was submitted to in said amendment, insert: 630; and the Sen- try for more than 180 days during the 120-month the Congress on .’’, with the blank space ate agree to the same. period beginning on the date on which the first being filled with the appropriate date. Amendment No. 128: such action is taken. That the House recede from its disagree- (b) WAIVER OF LIMITATIONS.—The President (d) APPLICABILITY.—This section— ment to the amendment of the Senate num- may exceed the dollar and time limitations in (1) shall not apply to any action taken as part bered 128, and agree to the same with an subsection (a)(2) if he certifies in writing to the of the program of assistance to Mexico an- amendment as follows: Congress that a financial crisis in that foreign nounced by the President on January 31, 1995; In lieu of the matter proposed by said country poses a threat to vital United States and amendment, insert: economic interests or the stability of the inter- (2) shall remain in effect through fiscal year Sec. 631. (a) Section 5402 of title 39, United national financial system. 1996. States Code, is amended— (c) EXPEDITED PROCEDURES FOR A RESOLU- And the Senate agree to the same. (1) in subsection (f) by striking out ‘‘During TION OF DISAPPROVAL.—A presidential certifi- Amendment No. 130: the period beginning January 1, 1985, and end- cation pursuant to subsection (b) shall not take That the House recede from its disagree- ing January 1, 1999, the ’’ and inserting in lieu effect, if the Congress, within thirty calendar ment to the amendment of the Senate num- thereof ‘‘The’’; and days after receiving such certification, enacts a bered 130, and agree to the same with an (2) in subsection (g)(1) by amending subpara- joint resolution of disapproval, as described in amendment as follows: paragraph (5) of this subsection. graph (D) to read as follows: In lieu of the matter proposed by said (1) REFERENCE TO COMMITTEES.—All joint res- ‘‘(D) have provided schedule service within amendment, insert: the State of Alaska for at least 12 consecutive olutions introduced in the Senate to disapprove SEC. 633. For purposes of each provision of months with aircraft— the certification shall be referred to the Commit- law amended by section 704(a)(2) of the Ethics ‘‘(i) up to 7,500 pounds payload capacity be- tee on Banking, Housing and Urban Affairs, Reform Act of 1989 (5 U.S.C. 5318 note), no ad- fore being selected as a carrier of nonpriority and in the House of Representatives, to the ap- justment under section 5303 of title 5, United bypass mail at an applicable intra-Alaska bush propriate committees. States Code, shall be considered to have taken service mail rate; and (2) DISCHARGE OF COMMITTEES.—(A) If the ‘‘(ii) over 7,500 pounds payload capacity be- committee of either House to which a resolution effect in fiscal year 1996 in the rates of basic pay fore being selected as a carrier of nonpriority has been referred has not reported it at the end for the statutory pay systems. bypass mail at the intra-Alaska mainline service of 15 days after its introduction, it is in order to And the Senate agree to the same. mail rate.’’ move either to discharge the committee from fur- Amendment No. 131: (b)(1) Subject to paragraph (2), the amend- ther consideration of the joint resolution or to That the House recede from its disagree- ment made by subsection (a) shall be effective discharge the committee from further consider- ment to the amendment of the Senate num- on and after August 1, 1995. ation of any other resolution introduced with bered 131, and agree to the same with an (2) Subparagraph (D) of section 5402(g)(1) title respect to the same matter, except no motion to amendment as follows: 39, United States Code (as in effect before the discharge shall be in order after the committee In lieu of the first section number named amendment made under subsection (a)) shall has reported a joint resolution with respect to in said amendment, insert: 634; and the Sen- apply to a carrier, if such carrier— the same matter. ate agree to the same. H 10818 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Amendment No. 133: poses’’, approved July 31, 1946 (40 U.S.C. members. Seven members of the Commission That the House recede from its disagree- 193m(1)). shall constitute a quorum. Any vacancy in the ment to the amendment of the Senate num- (e) Nothing in this section shall be construed Commission shall not affect its powers, but shall bered 133, and agree to the same with an as restricting the authority of the Administrator be filled in the same manner in which the origi- amendment as follows: of General Services or the head of an agency to nal appointment was made. In lieu of the matter proposed by said limit tobacco product use in or around any Fed- (5) APPOINTMENT; INITIAL MEETING.— amendment, insert: eral building, except as provided under sub- (A) APPOINTMENT.—It is the sense of the Con- SEC. 636. This section may be cited as the section (b)(1). gress that members of the Committee should be ‘‘Prohibition of Cigarette Sales to Minors in And the Senate agree to the same. appointed not more than 60 days after the date Federal Buildings and Lands Act’’. Amendment No. 135: of the enactment of this section. (a) As used in this section— That the House recede from its disagree- (B) INITIAL MEETING.—If, after 60 days from (1) the term ‘‘Federal agency’’ means— ment to the amendment of the Senate num- the date of the enactment of this section, seven (A) an Executive agency as defined in section bered 135, and agree to the same with an or more members of the Commission have been 105 of title 5, United States Code; and amendment as follows: appointed, members who have been appointed (B) each entity specified in subparagraphs (B) In lieu of the matter proposed by said may meet and select a Chairman who thereafter through (H) of section 5721(1) of title 5, United amendment, insert: shall have the authority to begin the operations States Code; SEC. 637. NATIONAL COMMISSION ON RESTRUC- of the Commission, including the hiring of staff. (2) the term ‘‘Federal building’’ means— TURING THE INTERNAL REVENUE (c) FUNCTIONS OF COMMISSION.— (A) any building or other structure owned in SERVICE. (1) IN GENERAL.—The functions of the Com- whole or in part by the United States or any (a) FINDINGS.—The Congress finds the follow- mission shall be— Federal agency, including any such structure ing: (A) to conduct, for a period of not to exceed occupied by a Federal agency under a lease (1) While the budget for the Internal Revenue one year from the date of its first meeting, the agreement; and Service (hereafter referred to as the ‘‘IRS’’) has review described in paragraph (2), and (B) includes the real property on which such risen from $2.5 billion in fiscal year 1979 to $7.3 (B) to submit to the Congress a final report of building is located; billion in fiscal year 1996, tax returns processing the results of the review, including recommenda- (3) the term ‘‘minor’’ means an individual has not become significantly faster, tax collec- tions for restructuring the IRS. under the age of 18 years; and tion rates have not significantly increased, and (2) REVIEW.—The Commission shall review— (4) the term ‘‘tobacco product’’ means ciga- the accuracy and timeliness of taxpayer assist- (A) the present practices of the IRS, especially rettes, cigars, little cigars, pipe tobacco, smoke- ance has not significantly improved. with respect to— less tobacco, snuff, and chewing tobacco. (2) To date, the Tax Systems Modernization (i) its organizational structure; (b)(1) No later than 45 days after the date of (TSM) program has cost the taxpayers $2.5 bil- (ii) its paper processing and return processing the enactment of this Act, the Administrator of lion, with an estimated cost of $8 billion. Despite activities; General Services and the head of each Federal this investment, modernization efforts were re- (iii) its infrastructure; and agency shall promulgate regulations that pro- cently described by the GAO as ‘‘chaotic’’ and (iv) the collection process; hibit— ‘‘ad hoc’’. (B) requirements for improvement in the fol- (A) the sale of tobacco products in vending (3) While the IRS maintains that TSM will in- lowing areas: machines located in or around any Federal crease efficiency and thus revenues, Congress (i) making returns processing ‘‘paperless’’; building under the jurisdiction of the Adminis- has had to appropriate additional funds in re- (ii) modernizing IRS operations; trator or such agency head; and cent years for compliance initiatives in order to (iii) improving the collections process without (B) the distribution of free samples of tobacco increase tax revenues. major personnel increases or increased funding; products in or around any Federal building (4) Because TSM has not been implemented, (iv) improving taxpayer accounts manage- under the jurisdiction of the Administrator or the IRS continues to rely on paper returns, ment; such agency head. processing a total of 14 billion pieces of paper (v) improving the accuracy of information re- (2) The Administrator of General Services or every tax season. This results in an extremely quested by taxpayers in order to file their re- the head of an agency, as appropriate, may des- inefficient system. turns; and ignate areas not subject to the provisions of (5) This lack of efficiency reduces the level of (vi) changing the culture of the IRS to make paragraph (1), if such area also prohibits the customer service and impedes the ability of the the organization more efficient, productive, and presence of minors. IRS to collect revenue. customer-oriented; (3) The provisions of this subsection shall be (6) The present status of the IRS shows the (C) whether the IRS could be replaced with a carried out— need for the establishment of a Commission quasi-governmental agency with tangible incen- (A) by the Administrator of General Services which will examine the organization of IRS and tives and internally managing its programs and for any Federal building which is maintained, recommend actions to expedite the implementa- activities and for modernizing its activities, and leased, or has title of ownership vested in the tion of TSM and improve service to taxpayers. (D) whether the IRS could perform other col- General Services Administration; or (b) COMPOSITION OF THE COMMISSION.— lection, information, and financial service func- (B) by the head of a Federal agency for any (1) ESTABLISHMENT.—To carry out the pur- tions of the Federal Government. Federal building which is maintained, leased, or poses of this section, there is established a Na- (d) POWERS OF THE COMMISSION.— has title of ownership vested in such agency. tional Commission on Restructuring the Internal (1) IN GENERAL.—(A) The Commission or, on (c) No later than 90 days after the date of en- Revenue Service (in this section referred to as the authorization of the Commission, any sub- actment of this Act, the Administrator of Gen- the ‘‘Commission’’). committee or member thereof, may, for the pur- eral Services and each head of an agency shall (2) COMPOSITION.—The Commission shall be pose of carrying out the provisions of this sec- prepare and submit, to the appropriate commit- composed of thirteen members, as follows: tion— tees of Congress, a report that shall contain— (A) Five members appointed by the President, (i) hold such hearings and sit and act at such (1) verification that the Administrator or such two from the executive branch of the Govern- times and places, take such testimony, receive head of an agency is in compliance with this ment, two from private life, and one from an or- such evidence, administer such oaths, and section; and ganization that represents a substantial number (ii) require, by subpoena or otherwise, the at- (2) a detailed list of the location of all tobacco of Internal Revenue Service employees. tendance and testimony of such witnesses and product vending machines located in Federal (B) Two members appointed by the Majority the production of such books, records, cor- buildings under the administration of the Ad- Leader of the Senate, one from Members of the respondence, memoranda, papers, and docu- ministrator or such head of an agency. Senate and one from private life. ments, as the Commission or such designated (d)(1) No later than 45 days after the date of (C) Two members appointed by the Minority subcommittee or designated member may deem the enactment of this Act, the Senate Committee Leader of the Senate, one from Members of the advisable. on Rules and Administration and the House of Senate and one from private life. (B) Subpoenas issued under subparagraph Representatives Committee on House Adminis- (D) Two members appointed by the Speaker of (A)(ii) may be issued under the signature of the tration, after consultation with the Architect of the House of Representatives, one from Members Chairman of the Commission, the chairman of the Capitol, shall promulgate regulations under of the House of Representatives and one from any designated subcommittee, or any designated the Senate and House of Representatives rule- private life. member, and may be served by any person des- making authority that prohibit the sale of to- (E) Two members appointed by the Minority ignated by such Chairman, subcommittee chair- bacco products in vending machines in the Cap- Leader of the House of Representatives, one man, or member. The provisions of sections 102 itol Buildings. from Members of the House of Representatives through 104 of the Revised Statutes of the Unit- (2) Such committees may designate areas and one from private life. ed States (2 U.S.C. 192–194) shall apply in the where such prohibition shall not apply, if such The Commissioner of the Internal Revenue case of any failure of any witness to comply area also prohibits the presence of minors. Service shall be an ex officio member of the with any subpoena or to testify when summoned (3) For the purpose of this section the term Commission. under authority of this section. ‘‘Capitol Buildings’’ shall have the same mean- (3) CHAIRMAN.—The Commission shall elect a (2) CONTRACTING.—The Commission may, to ing as such term is defined under section Chairman from among its members. such extent and in such amounts as are pro- 16(a)(1) of the Act entitled ‘‘An Act to define the (4) MEETING; QUORUM; VACANCIES.—After its vided in appropriation Acts, enter into contracts area of the United States Capitol Grounds, to initial meeting, the Commission shall meet upon to enable the Commission to discharge its duties regulate the use thereof, and for other pur- the call of the Chairman or a majority of its under this section. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10819

(3) INFORMATION FROM FEDERAL AGENCIES.— (1) FINAL REPORT.—Not later than one year RICHARD C. SHELBY, The Commission is authorized to secure directly after the date of the first meeting of the Commis- JAMES M. JEFFORDS, from any executive department, bureau, agency, sion, the Commission shall submit to the Con- BEN NIGHTHORSE board, commission, office, independent estab- gress its final report, as described in subsection CAMPBELL, lishment, or instrumentality of the Government, (c)(2). MARK O. HATFIELD, information, suggestions, estimates, and statis- (2) TERMINATION.—(A) The Commission, and BOB KERREY, tics for the purposes of this section. Each such all the authorities of this section, shall termi- ROBERT C. BYRD, department, bureau, agency, board, commission, nate on the date which is 60 days after the date Managers on the Part of the Senate. office, establishment, or instrumentality shall, on which a final report is required to be trans- JOINT EXPLANATORY STATEMENT OF to the extent authorized by law, furnish such mitted under paragraph (1). THE COMMITTEE OF CONFERENCE information, suggestions, estimates, and statis- (B) The Commission may use the 60-day pe- The managers on the part of the House and tics directly to the Commission, upon request riod referred to in subparagraph (A) for the pur- Senate at the conference on the disagreeing made by the Chairman. pose of concluding its activities, including pro- votes of the two Houses on the amendments (4) ASSISTANCE FROM FEDERAL AGENCIES.—(A) viding testimony to committees of Congress con- of the Senate to the bill (H.R. 2020) making The Secretary of the Treasury is authorized on cerning its final report and disseminating that appropriations for the Treasury Department, a nonreimbursable basis to provide the Commis- report. the United States Postal Service, the Execu- sion with administrative services, funds, facili- (h) AUTHORIZATION OF APPROPRIATIONS.— tive Office of the President, and certain inde- ties, staff, and other support services for the Such sums as may be necessary are authorized pendent agencies, for the fiscal year ending performance of the Commission’s functions. to be appropriated for the activities of the Com- September 30, 1996, and for other purposes, (B) The Administrator of General Services mission. submit the following joint statement to the shall provide to the Commission on a (i) APPROPRIATIONS.—Notwithstanding any nonreimbursable basis such administrative sup- other provision of this Act, $1,000,000 shall be House and Senate in explanation of the ef- port services as the Commission may request. available from fiscal year 1996 funds appro- fect of the action agreed upon by the man- (C) In addition to the assistance set forth in priated to the Internal Revenue Service, ‘‘Infor- agers and recommended in the accompany- subparagraphs (A) and (B), departments and mation systems’’ account, for the activities of ing conference report. agencies of the United States are authorized to the Commission, to remain available until ex- The conference agreement on the Treas- provide to the Commission such services, funds, pended. ury, Postal Service, and General Govern- facilities, staff, and other support services as And the Senate agree to the same. ment Appropriations Act, 1996, incorporates they may deem advisable and as may be author- Amendment No. 136: some of the language and allocations set ized by law. That the House recede from its disagree- forth in House Report 104–183 and Senate Re- (5) POSTAL SERVICES.—The Commission may ment to the amendment of the Senate num- port 104–121. The language in these reports use the United States mails in the same manner bered 136, and agree to the same with an should be complied with unless specifically and under the same conditions as departments amendment as follows: addressed in the accompanying statement of and agencies of the United States. In lieu of the matter proposed by said the managers. (e) STAFF OF THE COMMISSION.— amendment, insert: REPROGRAMMING AND TRANSFER (1) IN GENERAL.—The Chairman, in accord- SEC. 638. The Administrator of General Serv- REQUIREMENTS ance with rules agreed upon by the Commission, ices shall, within six months of enactment of The conferees agree with the Senate lan- may appoint and fix the compensation of a staff this Act, report to Congress on the feasibility of guage stating requirements for agency re- director and such other personnel as may be leasing agreements with State and local govern- quests for reprogramming and transfer ac- necessary to enable the Commission to carry out ments and private sponsors for the construction tions. its functions, without regard to the provisions of of border stations on the borders of the United TITLE I—DEPARTMENT OF THE title 5, United States Code, governing appoint- States with Canada and Mexico whereby— TREASURY ments in the competitive service, and without re- (1) lease payments shall not exceed 30 years gard to the provisions of chapter 51 and sub- for payment of the purchase price and interest; DEPARTMENTAL OFFICES chapter III of chapter 53 of such title relating to (2) an agreement entered into under such pro- SALARIES AND EXPENSES classification and General Schedule pay rates, visions shall provide for the title to the property Amendment No. 1. Inserts Senate language except that no rate of pay fixed under this sub- and facilities to vest in the United States on or permitting $2,950,000 for information tech- section may exceed the equivalent of that pay- before the expiration of the contract term, on nology modernization to remain available able to a person occupying a position at level V fulfillment of the terms and conditions of the until expended and deletes House language of the Executive Schedule under section 5316 of agreements. limiting the availability. title 5, United States Code. Any Federal Govern- And the Senate agree to the same. Amendment No. 2. Appropriates $105,929,000 ment employee may be detailed to the Commis- Amendment No. 139: instead of $104,000,500 as proposed by the sion without reimbursement from the Commis- That the House recede from its disagree- House, and $110,929,000 as proposed by the sion, and such detailee shall retain the rights, ment to the amendment of the Senate num- Senate. Also includes up to $500,000 in reim- status, and privileges of his or her regular em- bered 139, and agree to the same with an bursements to the District of Columbia for ployment without interruption. amendment as follows: personnel costs incurred as a result of the (2) CONSULTANT SERVICES.—The Commission is In lieu of the first section number named closure of Pennsylvania Avenue, and amends authorized to procure the services of experts and in said amendment, insert: 639; and the Sen- Section 640 of P.L. 103–329. consultants in accordance with section 3109 of ate agree to the same. OFFICE OF THE UNDER SECRETARY FOR LAW title 5, United States Code, but at rates not to Amendment No. 140: ENFORCEMENT exceed the daily rate paid a person occupying a That the House recede from its disagree- position at level IV of the Executive Schedule ment to the amendment of the Senate num- The House reduced funding for the Office of under section 5315 of title 5, United States Code. bered 140, and agree to the same with an the Under Secretary of Law Enforcement by (f) COMPENSATION AND TRAVEL EXPENSES.— amendment as follows: $1,066,000; the Senate did not address this (1) COMPENSATION.—(A) Except as provided in In lieu of the matter proposed by said issue. The conferees agree that $66,000 shall subparagraph (B), each member of the Commis- amendment, insert: be reduced from the fiscal year 1996 request sion may be compensated at not to exceed the SEC. 640. Service performed during the period for the Office of the Under Secretary of daily equivalent of the annual rate of basic pay January 1, 1984, through December 31, 1986, Treasury for Law Enforcement. The con- in effect for a position at level IV of the Execu- which would, if performed after that period, be ferees direct that no funds be reprogrammed tive Schedule under section 5315 of title 5, Unit- considered service as a law enforcement officer, into this Office without prior Congressional ed States Code, for each day during which that as defined in section 8401(17) (A)(i)(II) and (B) approval. member is engaged in the actual performance of of title 5, United States Code, shall be deemed Of the amounts provided to the Office of the duties of the Commission. service as a law enforcement officer for the pur- the Under Secretary, the conferees direct (B) Members of the Commission who are offi- poses of chapter 84 of such title. that up to $500,000 shall be transferred to the cers or employees of the United States or Mem- and, on page 78, line 23 of the House of Rep- District of Columbia for its costs associated bers of Congress shall receive no additional pay resentatives engrossed bill, H.R. 2020, after with the closing of Pennsylvania Avenue. on account of their service on the Commission. ‘‘code’’, insert the following: ‘‘or Sec. 613 of This transfer is consistent with a provision (2) TRAVEL EXPENSES.—While away from their this Act’’. recommended by the Senate which requires homes or regular places of business in the per- And the Senate agree to the same. the Department of Treasury to reimburse formance of services for the Commission, mem- The committee of conference reports in the District of Columbia for these costs. bers of the Commission shall be allowed travel disagreement amendment numbered 132. The conferees have also become aware of expenses, including per diem in lieu of subsist- JIM LIGHTFOOT, disparate personnel laws and regulations ence, in the same manner as persons employed FRANK R. WOLF, among the various Federal law enforcement intermittently in the Government service are al- ERNEST ISTOOK, agencies, as well as concerns that certain lowed expenses under section 5703(b) of title 5, JACK KINGSTON, Treasury law enforcement bureaus have had United States Code. MIKE FORBES, difficulty disciplining employees because of (g) FINAL REPORT OF COMMISSION; TERMI- BOB LIVINGSTON, overly restrictive personnel regulations. The NATION.— Managers on the Part of the House. conferees therefore dirct the Office of the H 10820 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Secretary to report back to the House and 1995 to submit a report to the House and Sen- Amendment No. 10. Appropriates $36,070,000 Senate Committees on Appropriations on op- ate Committees on Appropriations, the Com- as proposed by the House instead of tions for changing the statutory and regu- mittees have not received any indication $34,006,000 as proposed by the Senate. latory structure for Treasury law enforce- that the Department is moving to perma- FEDERAL LAW ENFORCEMENT TRAINING ment agencies to make recruiting, hiring, nently correct this problem. The conferees CENTER firing, promotions, demotions and lateral instruct the Department of Treasury to im- ACQUISITION, CONSTRUCTION IMPROVEMENTS, moves easier. The report should include op- plement a permanent solution as stated in AND RELATED EXPENSES tions such as moving all Treasury law en- the House report. Amendment No. 11. Appropriates $9,663,000 forcement personnel to the excepted service PROPERTY ACCOUNTABILITY IMPROVEMENTS as proposed by the Senate instead of and creating a broad-band pay structure for The conferees are encouraged by the wide- $8,163,000 as proposed by the House. The con- such employees. The report shall be due to spread interest in moving property/asset ac- ferees agree that the ‘‘related expenses’’ of the House and Senate Committees on Appro- countability activities from a periodic phys- this account may be used to pay for the cost priations no later than March 1, 1996. ical audit and inventory process to an auto- of direct hire and contractor personnel en- The conferees remain concerned with re- mated information based process. The inter- tirely engaged in the execution of expansion gard to the difficulties on the part of Treas- est in automated information management and repair projects. ury law enforcement bureaus in obtaining procedures, as expressed by various Depart- authorization from the Department of State FINANCIAL MANAGEMENT SERVICE ment officials, and put forth in the National in securing foreign posting for law enforce- SALARIES AND EXPENSES Performance Review, shows a significant po- ment officers. The conferees therefore re- Amendment No. 12. Appropriates tential for meaningful cost savings. $184,300,000 instead of $181,837,000 as proposed quest a report from the Department of It is the belief of the conferees that the De- by the House and $186,070,000 as proposed by Treasury to the House and Senate Commit- partment’s property management function the Senate. tees on Appropriations that identifies where lends itself to, and could benefit from, com- Treasury bureaus need to post agents by Amendment No. 13. Inserts Senate lan- mercial off-the-shelf information technology guage permitting $14,277,000 to remain avail- country, the types of cases that those agents including software, computer-based laminate would be assigned, the rationale for such as- able until expended for systems moderniza- barcode printers, barcode readers and stor- tion requirements. signments and the cost of such postings. The age devices. report should include options on reducing BUREAU OF ALCOHOL, TOBACCO AND FIREARMS the cost of overseas postings to Treasury bu- TREASURY BUILDINGS AND ANNEX REPAIR AND (ATF) RESTORATION reaus. The report shall be submitted to the SALARIES AND EXPENSES House and Senate Committees on Appropria- Amendment No. 3. Appropriates $21,491,000 Amendment No. 14. Appropriates tions no later than March 1, 1996. instead of no appropriation as proposed by $377,971,000 as proposed by the Senate instead the House and $7,684,000 as proposed by the ASSISTANT SECRETARY FOR MANAGEMENT/ of $391,035,000 as proposed by the House. CHIEF FINANCIAL OFFICER Senate. Included in this amount is $7,684,000 The conferees have reduced the request by for repairs and alteration requirements of The conferees withdraw the requirement $7,874,000 for program enhancements and the Treasury Building and Annex and included in the House report that the Mint $5,000,000 for base equipment needs because $13,807,000 for the Secret Service’s new head- and the BEP report directly to the Assistant the Congress funded these activities in the quarters building. Secretary of Treasury for Management/Chief Fiscal Year 1995 Supplemental Appropria- Financial Officer. The conferees do agree OFFICE OF INSPECTOR GENERAL tions Act. The conferees have increased the with the House that the Treasurer shall pro- SALARIES AND EXPENSES request by $1,150,000 and five FTE’s to reflect vide only oversight and guidance for the Amendment No. 4. Appropriates $29,319,000 a transfer-back of the funding and positions Mint and BEP and should not monitor day- as proposed by the House instead of which the Administration proposed to be to-day operations. $30,067,000 as proposed by the Senate. funded in the ‘‘Foreign Law Enforcement’’ account. The conferees have denied the UNDER SECRETARY FOR DOMESTIC FINANCE TREASURY FORFEITURE FUND $4,700,000 in ATF’s base for the violence re- The conferees note that a major Treasury Amendment No. 5. Appropriates $10,000,000 duction alliance initiative. The conferees Department issue which involves the Bureau instead of eliminating this account as pro- have reduced the account by $2,800,000 for of Engraving and Printing (BEP) is the ongo- posed by the House and $15,000,000 as pro- ATF’s support role in the GREAT Program. ing currency redesign initiative which is posed by the Senate. Because of the impor- This funding has been shifted to the Violent rightfully being tasked out from the Office tance of standardizing law enforcement com- Crime Trust Fund along with continued of the Under Secretary of Treasury for Do- munications and moving to narrow band funding for GREAT grants to existing com- mestic Finance. Major Treasury Department communications equipment, the conferees munities. Finally, the conferees have re- issues which involve the United States Mint agree that the Department may apply up to duced administrative overhead object classes are ongoing discussions over the introduc- $3,500,000 of the $10,000,000 appropriated in by $3,690,000 to be applied at the discretion of tion of the one dollar coin as well as elec- the Treasury Forfeiture Fund to the En- the Director. The reductions shall be applied tronic forms of cash such as stored-value forcement Federal Wireless Communications to object classes 21.0, 22.0, 23.3, 24.0, 25.0, 26.0, cards. These efforts are also rightfully project. The conferees furthermore agree and 31.0. The reduction in the equipment ac- tasked out from the Office of the Under Sec- that resources within this account may be tivity should be restored to ATF’s base in retary of Treasury for Domestic Finance. transferred to ATF for costs related to devel- fiscal year 1997. Funding for However, both the BEP and the Mint are or- opment of its canine explosives detection counterterrorism initiatives has been in- ganizationally found under the Assistant program. cluded in the ‘‘Violent Crime Trust Fund’’ Secretary for Management, not the Under FINANCIAL CRIMES ENFORCEMENT NETWORK account. Secretary for Domestic Finance. It appears SALARIES AND EXPENSES Amendment No. 15. Restores and modifies that this is not the proper organizational lo- House language prohibiting ATF from obli- cation for these agencies which have much Amendment No. 6. Restores and modifies gating funds for administrative expenses or more in common with the Financial Manage- House language authorizing FinCEN to offset compensation or for any employee to amend ment Service and the Bureau of Public Debt, the cost of travel for law enforcement per- the definition of ‘‘curios or relics’’ as pub- both of which report to the Under Secretary sonnel only. lished in the Code of Federal Regulations or Amendment No. 7. Appropriates $22,198,000 for Domestic Finance, than with Treasury remove items from ATF publication 5300.11 as proposed by the Senate instead of organizations which report to the Assistant as it existed on January 1, 1994. $20,273,000 as proposed by the House. Also in- Secretary for Management. EXPLOSIVES DETECTION PROGRAM In the interests of securing the most ap- cludes House proposed language allowing The conferees understand that ATF has de- propriate mechanism for these two organiza- FinCEN to procure up to $500,000 for special- veloped a method of training canines to de- tions to receive proper policy oversight, the ized automated data processing equipment tect explosive and fire accelerants that is conferees recommend that the Secretary of without complying with procurement regula- more accurate and reliable than techniques Treasury review his organizational structure tions and authorizing the use of its funds to employed elsewhere. This success has re- to ensure that the BEP and the U.S. Mint are procure personal services contracts. sulted in urgent requests by foreign govern- reporting to the most appropriate Treasury FEDERAL LAW ENFORCEMENT TRAINING ments such as Israel, Egypt and Greece for official. The Secretary should report to the CENTER technical assistance in establishing their Committees only if he determines that there SALARIES AND EXPENSES own programs in the ATF style. The con- should be no change in the current organiza- Amendment No. 8. Deletes House provision ferees are concerned, however, that, al- tional structure. permitting the Director of FLETC to offset though other nations have benefited from U.S. DUTCH TREATY PROTOCOL AMENDMENTS OF part of the cost of travel expenses for certain this technique, it has not been widely dis- 1993 individuals training at FLETC. seminated in the United States. The conferees strongly agree with the Amendment No. 9. Deletes House provision The conferees therefore direct ATF to de- House report language regarding the U.S. authorizing FLETC to obligate funds for site velop a formal program to train explosives Dutch Treaty Protocol Amendments of 1993. security and expansion of antiterrorism and accelerant detection canines and han- While the Department has until October 31, training facilities. dlers from local, state and Federal agencies. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10821 Treasury Asset Forfeiture funds may be used funding from any Treasury bureau or depart- that the IRS should work constructively for positions and capital improvements at ment to the Office of the Treasurer rep- with all participants (Congress, electronic the training facility currently being used in resents an augmentation of appropriations filing industry, and taxpayers) who have a Front Royal, Virginia. for Departmental Offices and should not be stake in electronic filing to ensure that the The conferees encourage all Federal agen- pursued without prior Congressional ap- problems experienced during the most recent cies with a need for explosives and proval. tax season will not be repeated. accelerant detection capabilities to consider DISTINCTIVE PAPER FOR CURRENCY INTERNAL REVENUE SERVICE using ATF’s canine explosives and accelerant The conferees agree that the House and TAX LAW ENFORCEMENT detection program. Senate report language concerning the pro- Amendment No. 21. Appropriates EXPLOSIVES DESENSITIZATION curement of distinctive paper for the print- $4,097,294,000 as proposed by the Senate in- The conferees are aware of an Office of ing of currency is complimentary and is stead of $4,254,476,000 as proposed by the Technology Assessment (OTA) recommenda- therefore supported by the conferees. Addi- House. tion that Naval Surface Weapons Center In- tionally, the conferees agree that none of the TAX COMPLIANCE INITIATIVE dian Head play a major role in any Ammo- report language shall contradict the law nium Nitrate desensitization initiatives. The which states that all requirements for the In fiscal year 1995, Congress provided a OTA report states that Indian Head has the domestic manufacture of paper shall not total of $4,385,459,000 for Tax Law Enforce- highest concentration of explosives experts apply if the Secretary of the Treasury deter- ment which was comprised of a base program in the world, and that Indian Head is running mines that no domestic manufacturer of dis- of $3,980,459,000 and $405,000,000 for the first the only insensitive munitions program in tinctive paper for currency or securities ex- installment of a new five year, $2,000,000,000 the U.S., with extensive experience in Am- ists. tax compliance initiative. In fiscal year 1996, the Administration requested a total of monium Nitrate mixtures. In addition, the U.S. MINT PUBLIC ENTERPRISE FUND ATF has worked with the International Fer- $4,524,351,000 for Tax Law Enforcement which Both the House and the Senate Commit- is comprised of a base program of tilizer Development Center. The conferees tees on Appropriations included language es- recommend that ATF continue to strongly $4,119,351,000 and the second installment of tablishing the United States Mint Public En- $405,000,000 for the tax compliance initiative. involve Indian Head and the Center in any terprise Fund. The Senate language included desensitization program. The conferees have appropriated $4,097,294,000 minor changes to the House proposed lan- for the base program, a three percent in- FIRE RESEARCH guage to which the conferees agree. The con- crease over the 1995 level and .5 percent less The conferees would also like to recognize ferees agree with language included in the than the request, but due to funding con- the accomplishments in fire research con- House report requiring the Director of the straints could not provide the second install- ducted by the University of Maryland. The U.S. Mint and the Secretary of Treasury to ment of $405,000,000 for the tax compliance conferees are aware that ATF and the Uni- file certain financial statements and reports. initiative. However, the conferees agree that versity of Maryland have in the past shared The conferees further agree that the Direc- within the funds available IRS should ag- expertise and knowledge. Considering the tor shall ensure that the revenues and ex- gressively pursue tax compliance. important work yet to be done in the area of penses from the circulating coinage and nu- The conferees do not believe that this ac- fire science and arson investigation, the con- mismatic operations are recorded separately. tion sends a signal that voluntary compli- ferees encourage the continuation and ex- Additionally, receipts from coinage oper- ance is no longer a priority or that the ac- pansion of this partnership. ations shall not be used to fund numismatic tion rewards tax cheats. The conferees are UNITED STATES CUSTOMS SERVICE operations, nor shall receipts from numis- dedicated to ensuring the effective and effi- matic operations be used to fund circulating SALARIES AND EXPENSES cient collection of taxes and strongly agree coinage operations. that IRS should pursue those who willfully Amendment No. 16. Appropriates INTERNAL REVENUE SERVICE and purposefully provide erroneous informa- $1,387,153,000 as proposed by the Senate in- tion to the IRS. The fact that overall IRS stead of $1,392,429,000 as proposed by the PROCESSING, ASSISTANCE, AND MANAGEMENT funding provided by the conference agree- House. The conferees deny the President’s Amendment No. 20. Appropriates ment represents 65 percent of the total dis- request to transfer $8,280,000 to foreign law $1,723,764,000 instead of $1,682,742,000 as pro- cretionary allocation available to the con- enforcement and assumes savings of posed by the House and $1,767,309,000 as pro- ferees is a testament to this dedication. $2,677,000 from administrative overhead. posed by the Senate. Amendment No. 22. Restores and modifies WESTERN HEMISPHERIC TRADE IRS REGULATIONS AFFECTING INTERCITY BUS House language authorizing $13,000,000 for a The conferees have included funding for re- FUEL EXCISE TAX REFUNDS private debt collection initiative. The conferees are concerned that many view of trade issues to be equally divided be- INTERNAL REVENUE SERVICE tween the Center for Study of Western Hemi- intercity bus companies are not receiving INFORMATION SYSTEMS spheric Trade in Texas and the Northern Federal diesel fuel excise tax refunds that Plains and Rockies Center for the Study of are due to them. The IRS regulation regards Amendment No. 23. Appropriates Western Hemispheric Trade in Montana at the dyeing of diesel fuel to prevent illegal $1,527,154,000 instead of $1,571,616,000 as pro- no more than half the level provided in 1995. use of tax-free diesel fuel. Intercity buses are posed by the House and $1,442,605,000 as pro- Amendment No. 17. Restores House lan- allowed to use either tax-free and remit the posed by the Senate and places a ‘‘floor’’ of guage and inserts Senate language requiring appropriate excise tax or use fully taxed fuel $695,000,000 on the expenditures for Tax Sys- the Commissioner to designate a single indi- and seek an appropriate refund. tems Modernization (TSM), which is vidual to be port director of all government While the conferees understand the ration- $26,000,000 less than the House minimum for activities at two ports of entry and earmarks ale for this regulation, they are concerned TSM and $25,000,000 more than the Senate $750,000 for additional part-time and tem- that it may be impeding services provided by minimum for TSM. porary positions in the Honolulu Customs intercity bus companies to rural areas, the Amendment No. 24. Deletes House lan- District. elderly, the young and the poor. The con- guage and modifies Senate language on Tax ferees expect the IRS to work with the ap- Systems Modernization. OPERATION AND MAINTENANCE, AIR AND MARINE propriate Congressional committees to re- INTERDICTION PROGRAMS TAX SYSTEMS MODERNIZATION solve this serious problem expeditiously. Amendment No. 18. Appropriates $64,843,000 The conferees have also included legisla- ELECTRONIC FILING instead of $60,993,000 as proposed by the tive language which ‘‘fences’’ $100,000,000 of House and $68,543,000 as proposed by the Sen- The conferees fully support the goals ac- the funds appropriated for tax systems mod- ate. companying Tax Systems Modernization ernization until the Secretary of the Treas- Amendment No. 19. Deletes House lan- (TSM) as outlined by the Internal Revenue ury reports to the Committees on Appropria- guage allowing $5,644,000 to remain available Service (IRS). However, the conferees seek a tions of the House and the Senate. The re- until expended. better understanding of actions taken by the port shall use explicit decision criteria to IRS during the most recent tax season that identify, evaluate, and prioritize all systems BUREAU OF ENGRAVING AND PRINTING have caused a dramatic decline in electronic investments planned for fiscal year 1996; in- CURRENCY REDESIGN EFFORT filing, the cornerstone of TSM. The conferees clude a schedule for successfully mitigating The conferees do not agree with the House request the IRS to include in the TSM busi- deficiencies identified by the General Ac- language directing that the U.S. Treasurer ness plan, the specific steps the IRS, in co- counting Office (GAO) in its April 1995 report have full operational control over all aspects operation with the electronic filing industry, to the Committees; establish a schedule for of the public relations effort for currency re- intends to take to maintain and increase the development and implementation of all design. The conferees agree that the cur- current levels of electronic filing. projects included in the tax systems mod- rency redesign effort should remain under The conferees believe that the IRS has ernization program; and, provide a plan to the jurisdiction of the Bureau of Engraving made significant strides in deterring and de- expand the utilization of external, not Inter- and Printing and the Under Secretary of tecting fraud, but make the observation that nal Revenue Service (IRS), expertise for sys- Treasury for Domestic Finance. many hardworking, honest taxpayers have tems development and integration. The conferees further agree that transfer- been inconvenienced due to last filing sea- The conferees direct GAO to review the ring or detailing full time equivalents and/or son’s changes. Further, the conferees believe IRS report, when completed, to ensure that, H 10822 CONGRESSIONAL RECORD — HOUSE October 25, 1995 in fact, deficiencies identified by GAO have anti-counterfeiting efforts, $1,600,000 for of $3,180,000 but remain concerned over the been corrected. GAO shall provide an inde- missing and exploited children, $400,000 for duplication of effort within the Executive pendent assessment of the actions taken by the Treasury Recipient Income Verification Office of the President as it relates to advis- IRS to address these deficiencies in a report Program and $3,278,000 for the upcoming ing the President on economic policy. The to the House and Senate Appropriations Summer Olympics and the remaining funds conferees are also concerned that the spe- Committees by no later than April 1, 1996. for other Secret Service activities. cific functions and responsibilities of the Should the IRS report not be available prior Amendment No. 28. Appropriates $7,200,000 Council are not ones which necessarily re- to that time, the conferees direct the GAO to as proposed by the Senate instead of quire a full time Federal employment level provide status reports to the Committees on $12,200,000 as proposed by the House. of 35 and annual operating costs of $3.5 mil- IRS corrective actions and provide such as- GENERAL PROVISIONS—DEPARTMENT OF THE lion. The conferees direct CEA to submit, as sessment within 30 days of receipt of the IRS TREASURY part of its fiscal year 1997 budget request, a report. Amendment No. 29. Deletes House lan- report on the current organizational struc- The IRS has been told by a number of guage authorizing Treasury to transfer up to ture of economic advice to the President in- sources, including the House and Senate Ap- cluding an assessment of the roles of the Of- propriations Committees, the GAO, and the 2 percent between appropriations accounts with the advance approval of the House and fice of Management and Budget and the Na- National Academy of Sciences that, within tional Economic Council as they relate to the IRS, there is not the level of expertise Senate Committees on Appropriations. Amendment No. 30. Deletes Senate lan- the formulation, coordination, and imple- required for proper development and imple- guage exempting Customs personnel funded mentation of national economic policy. This mentation of TSM. The House and the Sen- report should also include a specific plan for ate Appropriations Committees have urged through reimbursement from the Puerto Rico Trust Fund from government-wide streamlining economic advice to the Presi- IRS to move toward greater use of the con- dent and structuring a full time volunteer tractor community and its expertise in the work force reductions. Amendment No. 31. Inserts Senate lan- Council of Economic Advisers using, for in- area of systems development and total pro- guage authorizing the Treasury Department stance, academicians, fellows, and other in- gram integration. Thus far, IRS has been re- to use its aircraft to assist Federal agencies dividuals to provide independent economic luctant to pursue this approach, relying in- advice to the President. stead on internal organizational structures. in carrying out emergency law enforcement The conferees have therefore included lan- support to protect human life, property, pub- NATIONAL SECURITY COUNCIL guage which requires the IRS to develop a lic health or safety. SALARIES AND EXPENSES Amendment No. 32. Deletes Senate lan- plan to expand the utilization of contractor Amendment No. 38. Appropriates $6,648,000 guage authorizing the expenditure of up to expertise for systems development and total as proposed by the Senate instead of $500,000 to reimburse the District of Colum- program integration. As stated by the Sen- $6,459,000 as proposed by the House. bia for personnel costs incurred as a result of ate, the IRS is a revenue collection agency, OFFICE OF ADMINISTRATION not an automation design company and the closure of Pennsylvania Avenue. should use contractor resources more effec- TITLE II—U.S. POSTAL SERVICE SALARIES AND EXPENSES tively. FEDERAL POSTAL SERVICE EMPLOYEES Amendment No. 39. Appropriates $25,736,000 Furthermore, the conferees believe that The conferees strongly believe that the as proposed by the House instead of the Secretary of the Treasury should con- Federal postal employees who volunteered to $25,560,000 as proposed by the Senate. tinue to exercise direct oversight control of fight the recent fires on Long Island, NY, OFFICE OF MANAGEMENT AND BUDGET the management of TSM, providing guidance from August 21 to September 6, 1995 should SALARIES AND EXPENSES and assistance when necessary. be paid their equivalent salaries for the time Amendment No. 40. Appropriates $55,573,000 ADMINISTRATIVE PROVISIONS—INTERNAL that they devoted to fighting fires. The Post- as proposed by the Senate instead of REVENUE SERVICE al Service has previously indicated the em- $55,426,000 as proposed by the House. Amendment No. 25. Deletes House lan- ployees must take vacation time or unpaid Amendment No. 41. Deletes a provision in- guage prohibiting the transfer of funds from leave, but the conferees believe that the serted by the Senate prohibiting the obliga- the tax law enforcement account in fiscal Presidential declaration of a national disas- tion of fiscal year 1996 funds by OMB until a year 1996. ter in this case warrants, and the Postmaster report on longer-term budgeting has been UNITED STATES SECRET SERVICE General concurs, that all postal workers who submitted to the House and Senate Commit- SALARIES AND EXPENSES were engaged as volunteer firefighters in the tees on Appropriations. The conferees did Amendment No. 26. Appropriates Long Island fires will be ‘‘held harmless,’’ not include the Senate provision since the $531,944,000 instead of $542,461,000 as proposed not lose vacation or personal time, and be information required from OMB on this sub- by the House and $534,502,000 as proposed by paid the equivalent of their salaries for their ject was provided to the Committees prior to the Senate. The conferees deny funding of time donated to the disaster. conference action. $2,300,000 for mainframe computer replace- TITLE III—EXECUTIVE OFFICE OF THE LONG-TERM BUDGETING ment and financial systems enhancements, PRESIDENT The first and most significant rec- deny the transfer of $3,100,000 to Foreign Law THE WHITE HOUSE OFFICE ommendation endorsed by a majority of the Enforcement, and assume administrative SALARIES AND EXPENSES Bipartisan Commission on Entitlement and overhead savings of $7,646,000, as proposed by Amendment No. 33. Appropriates $39,459,000 Tax Reform was that the Federal govern- the Senate. The conferees include $16,295,000 as proposed by the House instead of ment make major spending and tax decisions to restore base funding requirements which $38,131,000 as proposed by the Senate. with reference to a longer time period than have eroded over the past several years. The EXECUTIVE RESIDENCE AT THE WHITE HOUSE the traditional five year budget window. As conferees fund $13,807,000 associated with the a result, the Senate Committee on Appro- new headquarters building in a separate ac- OPERATING EXPENSES priations requested OMB to provide a 30-year count and $3,278,000 in protection costs asso- Amendment No. 34. Appropriates $7,827,000 analysis of the costs of the major entitle- ciated with the upcoming Summer Olympics as proposed by the Senate instead of ment programs. That information was sub- in the Violent Crime Trust Fund account. $7,522,000 as proposed by the House. mitted to the Committee in a letter dated, VIOLENT CRIME REDUCTION PROGRAMS EXECUTIVE RESIDENCE AT THE WHITE HOUSE September 12, 1995. The conferees have de- Amendment No. 27. Appropriates $69,314,000 WHITE HOUSE REPAIR AND RESTORATION cided to print that letter and the accom- instead of $51,686,000 as proposed by the Amendment No. 35. Inserts Senate lan- panying document in the statement of man- House and $68,300,000 as proposed by the Sen- guage establishing an appropriation of agers so that the American public can be ate. This includes $21,010,000 for the ATF, of $2,200,000 to fund repairs and restoration ac- aware of the long-range costs facing the which $3,100,000 shall be available for the fur- tivities at the White House. country as a result of entitlement programs. ther development of ballistics imaging tech- That information follows: SPECIAL ASSISTANCE TO THE PRESIDENT nologies as part of the ‘‘CEASEFIRE’’ pro- EXECUTIVE OFFICE OF THE PRESI- gram, $3,500,000 shall be available for admin- SALARIES AND EXPENSES DENT, OFFICE OF MANAGEMENT istering the GREAT program, and the re- Amendment No. 36. Appropriates $3,280,000 AND BUDGET, maining $14,410,000 shall be available to con- as proposed by the Senate instead of Washington, DC, September 12, 1995. tinue funding for recent expansions in the $3,175,000 as proposed by the House. Hon. J. ROBERT KERREY, arson and explosives detection and investiga- COUNCIL OF ECONOMIC ADVISERS U.S. Senate, tion program. The conferees also provide SALARIES AND EXPENSES Washington, DC. $25,690,000 for the U.S. Customs Service’s DEAR SENATOR KERREY: In response to your Amendment No. 37. Appropriates $3,180,000 ‘‘Operation Hardline’’ to bolster drug law en- interest in the long-range outlook for the instead of eliminating this account as pro- forcement efforts at the U.S.-Mexico border, Federal budget, enclosed is a table that lists posed by the House and $3,439,000 as proposed $21,600,000 for the United States Secret Serv- long-range baseline projections. These pro- by the Senate. ice, and $1,014,000 for the Federal Law En- jections extend the baseline estimates pub- forcement Training Center. NATIONAL ECONOMIC POLICY FORMULATION lished in the Administration’s Mid-Session Of the $21,600,000 provided to the Secret The conferees have restored funding for the Review of the 1996 Budget for a period of Service, the conferees include $5,000,000 for Council of Economic Advisers in the amount thirty years. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10823 These projections use the best methodol- authority and outlays follow the caps speci- the Congressional Budget Resolution. In- ogy and data available. However, it is very fied in the Omnibus Budget Reconciliation stead, they only project the effects of cur- important to recognize the large uncertain- Act of 1993 through FY 1998 and rise at the rent laws assuming the policies underlying ties inherent in making projections of re- rate of inflation thereafter. Outlays for those laws are not changed. ceipts and outlays this far into the future. major entitlement programs are projected The projections are obviously highly sen- using a combination of underlying economic I hope this information is helpful to you sitive to the underlying economic and demo- assumptions, available actuarial data and an and I look forward to working with you to graphic assumptions. In addition, they rely analysis of recent trends. address both the short- and long-term fiscal on a simplified model of the budget. Receipts It is also important to recognize that all of problems our nation faces. projections are based on a simplified deriva- the projections in the enclosure are baseline Sincerely, tion of tax bases implied by the underlying estimates. They do not reflect the policies in ALICE M. RIVLIN, economic assumptions. Discretionary budget the President’s balanced budget plan or in Director. LONG-RANGE BASELINE PROJECTIONS [In billions of dollars]

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Baseline totals: Receipts ...... 1,418 1,485 1,561 1,644 1,737 1,831 1,928 2,028 2,133 2,251 Outlays ...... 1,603 1,682 1,756 1,846 1,946 2,037 2,143 2,250 2,368 2,499

Deficit (¥) ...... ¥185 ¥197 ¥194 ¥202 ¥208 ¥206 ¥216 ¥222 ¥235 ¥248 Memorardum: Discretionary budget authority ...... 522 535 542 558 576 594 612 631 650 671 Trust fund surplus/deficit (¥):1 OASDI 2 ...... 75 81 87 92 98 105 112 120 127 135 HI/SMI ...... 6 ¥4 ¥9 ¥16 ¥23 ¥31 ¥40 ¥49 ¥59 ¥70 Civil service retirement ...... 27 27 28 29 32 33 34 35 36 36 Military retirement ...... 3 2 2 1 1 0 0 ¥1 ¥2 ¥2 1 Based on most recent actuarial reports. 2 Figures are for calendar years.

LONG-RANGE BASELINE PROJECTIONS [In billions of dollars]

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Basline totals: Receipts ...... 2,363 2,485 2,611 2,742 2,878 3,020 3,167 3,320 3,477 3,639 Outlays ...... 2,627 2,763 2,908 3,066 3,235 3,413 3,602 3,806 4,026 4,264

Deficit (¥) ...... ¥264 ¥278 ¥298 ¥324 ¥357 ¥393 ¥435 ¥487 ¥549 ¥625 Memorandum: Discretionary budget authority ...... 691 713 735 758 781 805 830 856 883 910 Trust fund surplus/deficit (¥):1 OASDI 2 ...... 144 152 157 159 162 164 161 154 143 128 HI/SMI ...... ¥83 ¥97 ¥111 ¥128 ¥148 ¥170 ¥196 ¥227 ¥261 ¥299 Civil service retirement ...... 37 37 38 38 39 39 40 40 40 41 Military ...... ¥3 ¥4 ¥5 ¥6 ¥7 ¥8 ¥8 ¥9 ¥9 ¥5 1 Based on most recent actuarial reports. 2 Figures are for calendar years.

LONG-RANGE BASELINE PROJECTIONS [In billions of dollars]

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Baseline totals: Receipts ...... 3,807 3,985 4,167 4,355 4,552 4,755 4,967 5,188 5,413 5,650 Outlays ...... 4,511 4,772 5,053 5,353 5,675 6,017 6,383 6,775 7,194 7,644

Deficit(¥) ...... ¥704 ¥787 ¥886 ¥998 ¥1,123 ¥1,261 ¥1,416 ¥1,587 ¥1,782 ¥1,995 Memorandum: Discretionary budget authority ...... 938 967 997 1,028 1,060 1,093 1,127 1,162 1,198 1,235 Trust fund surplus/deficit(¥):1 OASDI2 ...... 108 81 49 12 ¥30 ¥78 ¥132 ¥193 ¥260 ¥334 HI/SMI ...... ¥341 ¥389 ¥444 ¥505 ¥571 ¥644 ¥727 ¥821 ¥924 ¥1,037 Civil service retirement ...... 42 43 44 45 46 47 49 50 52 54 Military retirement ...... 8 11 41 46 52 59 66 74 82 92 1 Based on most recent actuarial reports. 2 Figures are for calendar years.

PRIVATIZATION OF NONPERFORMING FEDERAL loans, and profit motive). In short, the pri- Therefore, the conferees direct the Office LOAN AND LOAN GUARANTEES vate sector has the technology, capacity, of Management and Budget to direct, and co- The conferees are aware that some Federal ability and motivation to produce more ordinate with, the Federal agencies involved agencies are exploring the privatization of value than the Government ever could. in credit programs to evaluate the value of their credit programs, including the cost of Federal loan and loan guarantees. For exam- The conferees believe that more consider- annual administrative expenses and develop ple, the Department of Housing and Urban ation should be given to the sale of loans and a plan for the privatization of such credit Development (HUD) recently held an auction loan guarantees held not only by HUD, but programs. The Director of OMB shall be re- of 177 multifamily loans that had defaulted by all Federal agencies that provide credit sponsible for assuring the implementation of on mortgage insurance written by HUD. The programs. The Federal Government holds this directive and coordinating the activities unpaid amount of these defaulted loans was huge amount of loans and loan guarantees of all Federal agencies hereunder. more than $900,000,000, but because of the that are worth more in the hands of the pri- Government’s poor collection history, the Specifically, OMB is directed to have the vate sector. The estimated amounts are various agencies provide the following infor- loans were valued by OMB as worth only $800,000,000 of loan guarantees and $286,000,000 if they continued to be held by mation: for each financing account and for $200,000,000,000 in loans. the Government. However, these same loans each liquidating account, as those terms are were sold to private investors for $710,000,000. Using conservative estimates, it may be defined in sections 502(7) and 502(8) of the This one transaction alone reduced the defi- that between $20,000,000,000 to $50,000,000,000 Federal Credit Reform Act of 1990; the cumu- cit by $424,000,000. could be realized if much of the Federal cred- lative balance of direct loans outstanding, The private sector was, in this case, will- it program was to be turned over to the pri- the estimated net present value of such di- ing to pay more than twice the value of vate sector. However, it is impossible to as- rect loans, the annual administrative ex- these loans to the Government because there certain the value of such an effort because penses (the portion of salaries and expenses is a huge productivity gap between the Gov- many of the agencies are unaware of the that are directly related to such loans out- ernment and private sector (technology, in- value imbedded in their credit programs and standing), and the estimated net proceeds frastructure and expertise in managing bad how such transfers might be achieved. that would be received if such direct loans H 10824 CONGRESSIONAL RECORD — HOUSE October 25, 1995 were sold; the cumulative balance of guaran- OFFICE OF NATIONAL DRUG CONTROL POLICY duce drug abuse. The conferees expect the teed loans outstanding, the estimated net SALARIES AND EXPENSES Director of the Office of National Drug Con- present value of such loan guarantees, the Amendment No. 43. Restores and modifies trol Policy to report to the Committees on annual administrative expenses (the portion funding and language inserted by the House Appropriations by no later than January 15, of salaries and expenses that are directly re- and stricken by the Senate. The conferees 1996, on the progress being made in this re- lated to such guaranteed loans outstanding), have provided $23,500,000 for Office of Na- gard. and the estimated net proceeds that would tional Drug Control Policy activities in fis- FEDERAL DRUG CONTROL PROGRAMS be received if such loan guarantees were cal year 1996. Included in this amount is HIGH INTENSITY DRUG TRAFFICKING AREAS sold; and the cumulative balance of de- $7,500,000 for salaries and expenses of the Of- PROGRAM faulted loans that were previously guaran- fice and $16,000,000 for the research and de- teed and have resulted in loans receivable, Amendment No. 45. Deletes Housing lan- velopment projects of the Counter-Drug guage appropriating $104,000,000 for the the estimated net present value of such loan Technology Assessment Center (CTAC). Of assets, the annual administrative expenses HIDTA program. the amounts appropriated to CTAC, $600,000 Amendment No. 46. Appropriates (the portion of salaries and expenses that are is for automated data processing improve- directly related to such loan assets), and the $103,000,000 for the HIDTA program instead of ments at the Drug Enforcement Administra- $104,000,000, as proposed in Amendment No. 45 estimated net proceeds that would be re- tion’s El Paso Intelligence Center. ceived if such direct loans were sold. and $110,000,000 as proposed by the Senate, CALIFORNIA GUNLINK PROJECT including $55,000,000 for state and local gov- On or before March 31, 1996, OMB shall re- The conferees direct the Office of National ernments and $48,000,000 for Federal agen- quire each Federal agency that makes or has Drug Control Policy to use a portion of the cies. The conferees direct that these reduc- made direct loans or loan guarantees, as $3,100,000 made available under the fiscal tions in the Federal share be taken propor- those terms are defined in sections 502(1) and year 1995 Treasury, Postal Service, and Gen- tionately from all the existing HIDTAs. 502(2) of the Federal Credit Reform Act of eral Government Appropriations Act to pur- TITLE IV—INDEPENDENT AGENCIES 1990, to prepare and issue a report to the Di- chase no more than six ballistics imaging ADVISORY COMMISSION ON rector of the Office of Management and machines for the California Gunlink project INTERGOVERNMENTAL RELATIONS (ACIR) Budget, the Director of the Congressional and use remaining resources to develop Budget Office and the chairmen of the appro- networking capabilities among the different SALARIES AND EXPENSES priate committees of the House and Senate models of ballistics imaging systems. Amendment No. 47. Appropriates $784,000 and a detailed plan containing the agency’s instead of $334,000 as proposed by the Senate proposed schedule, by fiscal year, and provid- MODEL STATE DRUG LAWS The conferees direct the Office of National and no appropriation as proposed by the ing for the transfer to the private sector the House and includes language directing the sale, by September 30, 2002, of all direct Drug Control Policy to apply $1,000,000 for the National Alliance for Model State Drug orderly termination of ACIR. loans, loan guarantees and defaulted loans The conferees have appropriated a total of that were previously guaranteed and have re- Laws for conferences to be held by Governors to review model state drug laws as proposed $784,000 for ACIR: $334,000 to conduct a study sulted in loans receivable to the extent such on unfunded mandates and $450,000 for costs transfer would result in a net profit to the by the President’s Commission on Model State Drug Laws. associated with the termination of the agen- Treasury. Such schedule shall be updated an- cy. nually on the first day of each successive fis- DRUG AND ALCOHOL ADDICTION PROJECT cal year, and shall include a detailed plan for The conferees urge the Chief Scientist to ADMINISTRATIVE CONFERENCE OF THE UNITED the sale of all direct loans, loan guarantees consider a collaborative effort, designed by STATES (ACUS) and defaulted loans that were previously the Medical College of Pennsylvania and SALARIES AND EXPENSES guaranteed that are added to the agency’s fi- Hahnemann University, to implement a dem- Amendment No. 48. Appropriates $600,000 nancing accounts subsequent to October 1, onstration project to explore the causes and instead of no appropriation as proposed by 1995. treatments of drug and alcohol addiction, in the House and $1,800,000 as proposed by the collaboration with Albert Einstein Medical Senate. STREAMLINING THE EMPLOYEE GRIEVANCE Center of Philadelphia. TERMINATIONS COSTS PROCESS Amendment No. 44. Deletes language and The conferees have agreed to provide a The conferees note that there are a number funding inserted by the Senate for the Office total of $600,000 for the orderly termination of Federal agencies involved in settling em- of National Drug Control Policy. While the of operations at ACUS which shall begin on ployee grievances: the Federal Labor Rela- conferees have agreed to delete the bill lan- October 1, 1995, and be completed no later tions Authority, the Merit Systems Protec- guage proposed by the Senate, the conferees than February 1, 1996. The conferees agree tion Board, the Office of Special Counsel, the remain concerned about the trends of drug that this agency shall cease to exist and the Equal Employment Opportunity Commis- abuse in this country and the effectiveness of appropriation of $600,000 shall be used only to sion, the National Labor Relations Board, the Office of National Drug Control Policy to close down operations at ACUS. and the Office of Personnel Management. deal with this continuing problem. Despite The conferees believe that there are opportu- an investment of over $86 billion in Federal COMMITTEE FOR PURCHASE FROM PEOPLE WHO nities to streamline this somewhat unwieldy anti-drug programs since Fiscal Year 1988, ARE BLIND OR SEVERELY DISABLED structure and therefore direct the Adminis- the number of hardcore drug users has re- SALARIES AND EXPENSES tration to develop a legislative proposal to mained constant at 2.7 million. More disturb- Amendment No. 49. Appropriates $1,800,000 restructure all Federal employee adjudica- ing are recent surveys which indicate that as proposed by the Senate instead of tory functions and submit this plan to Con- since 1992 there has been an increase in the $1,682,000 as proposed by the House. gress no later than February 1, 1996. use of illicit drugs amongst our nation’s youth and a disturbing change in attitudes FEDERAL ELECTION COMMISSION (FEC) INFORMATION SECURITY OVERSIGHT OFFICE toward the acceptability of drug use. SALARIES AND EXPENSES Amendment No. 42. Deletes Senate lan- Despite significant increases in Federal Amendment No. 50. Appropriates $26,521,000 guage appropriating $1,482,000 for salaries spending there has been a lack of a clear and as proposed by the House instead of and expenses under the Executive Office of loud voice from the Administration in speak- $28,517,000 as proposed by the Senate and ear- the President. ing out on drug abuse. If the Federal Govern- marks $1,500,000 for intermal automated data ment is going to continue to provide billions processing systems. The original President’s 1996 budget re- of dollars to combat illicit drug trafficking quest included $1,482,000 for a new Independ- Amendment No. 51. Restores House lan- and abuse then it must ensure that the prob- guage prohibiting the use of funds by FEC ent Agency titled ‘‘Information Security lem receives the highest level of attention at Oversight Office’’. A subsequent budget until a report is submitted to the Commit- the Cabinet level, and private sector rep- tees on Appropriations on a systems require- amendment eliminated the request for an resentatives participate in policy develop- Independent Agency and moved the informa- ments analysis on the development of an ment and direction. Therefore, the conferees ADP system. tion Security Oversight Office (ISOO), and strongly urge the President to convene a FEDERAL LABOR RELATIONS AUTHORITY $1,482,000, to the National Archives and Cabinet Council, involving all Cabinet mem- Records Administration. The House elimi- bers whose departments play a role in drug SALARIES AND EXPENSES nated funding, within the National Archives, control policy, to meet on a regular basis to Amendment No. 52. Appropriates $20,542,000 for the ISOO and the Senate funded it as a discuss and formulate strategies to effec- instead of $19,742,000 as proposed by the separate agency under the Executive Office tively reduce drug abuse in this country. In House and $21,398,000 as proposed by the Sen- of the President at a level of $1,482,000. addition, the conferees strongly urge the ate. The conferees agree that as a separate President to convene a bipartisan conference GENERAL SERVICES ADMINISTRATION agency, ISOO shall cease to exist and have on drug control, inviting representatives FEDERAL BUILDINGS FUND eliminated the funding recommended by the from prevention, law enforcement, edu- Senate. The conferees have provided funding cation, treatment, business leadership, LIMITATIONS ON AVAILABILITY OF REVENUE for ISOO in the National Archives and media and parent organizations to partici- Amendment No. 53. Inserts Senate lan- Records Administration appropriation. pate in the formulation of a strategy to re- guage inserting an account heading. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10825

Amendment No. 54. Inserts Senate lan- Concord, N.H., and an employees’ reliance GENERAL SERVICES ADMINISTRATION guage allowing an appropriation into the upon auto transportation, a parking space OPERATING EXPENSES Federal Buildings fund (FBF). availability problem will undoubtedly arise. The Administration requested that the tra- Amendment No. 55. Inserts Senate lan- Accordingly, the conferees believe that ditional single account for the Policy and guage appropriating $86,000,000. should the City of Concord build a parking Operations of the General Services Adminis- Amendment No. 56. Limits obligation from facility to accommodate the vehicles of 400 tration (GSA) be separated into two appro- the FBF to $5,066,149,000 instead of people, (including 300 federal employees, as priations. The House agreed with this ap- $5,066,822,000 as proposed by the House and well as various citizens and court officials), proach and funded the Policy Oversight ap- $5,086,019,000 as proposed by the Senate. the federal government should use this new propriation at $62,499,000 and the Operating Amendment No. 57. Makes available parking facility for its employees’ benefit to Expenses appropriation at $49,130,000. The $545,002,000 for new construction of Federal the maximum extent possible. Senate retained that traditional approach buildings instead of $367,777,000 as proposed LAS VEGAS, NEVADA, COURTHOUSE and funded both of these organizations in by the House and $573,872,000 as proposed by The conferees are aware of the need for a one appropriation of $113,827,000. the Senate. new courthouse in Las Vegas, Nevada. Land The conferees agree with the Senate posi- Amendment No. 58. Inserts and modifies for the site for this project will be donated to tion to provide funding for Policy and Oper- Senate language which provides funding for the Federal government by the City of Las ations within the Operating Expenses appro- the construction of certain Federal buildings Vegas at no cost. The conferees have not pro- priation and have funded this appropriation and facilities. vided funds for the construction of this at $119,091,000. However, the conferees direct YOUNGSTOWN, OHIO U.S. COURTHOUSE project in fiscal year 1996 because the Gen- GSA to ensure separate and distinct offices The fiscal year 1996 request includes eral Services Administration has advised the for Policy/Oversight and Operations. The $17,436,000 for the U.S. Courthouse in Youngs- conferees that the contract for this project Policy and Oversight office should be respon- town, Ohio. The conferees have not provided cannot be awarded until June 1997. Because sible for developing and overseeing govern- funds for the construction of this project in of the urgent need of the courts in Nevada, ment-wide policy while the Operations office fiscal year 1996 because the General Services the conferees instruct GSA to continue pre- should carry out GSA’s other mission of pro- Administration (GSA) has advised the con- liminary design work on this project in fiscal viding services. ferees that the contract for this project can- year 1996 and request funds in fiscal year 1997 The conference agreement should not prej- not be awarded in fiscal year 1996. Because of for the construction of this new courthouse udice any decision by the Office of Manage- the urgent need of the courts in Youngstown, project. The conferees further note that they ment and Budget to once again submit a the conferees instruct GSA to continue pre- will do their best to fund this project as one budget request for GSA which provides sepa- liminary design work on this project in fiscal of the highest priorities in fiscal year 1997. rate appropriations for Policy and Oper- ations. The conferees agree with the House year 1996 and request funds in fiscal year 1997 FDA CONSOLIDATION for the construction of this new courthouse position that the goal of developing govern- The conferees request GSA study the ment-wide policy direction could be at odds project. The conferees further note that they White Oak, Maryland site for the consolida- with GSA’s other goal of increasing its oper- will do their best to fund this project as one tion of FDA facilities. ational base and the OMB should consider fu- of the highest priorities in fiscal year 1997. Amendment No. 59. Restores House lan- ture budgets which would provide a more de- guage on Flexiplace Telecommuting Centers SEATTLE, WASHINGTON COURTHOUSE finitive separation of these two goals. The conference agreement provides and inserts Senate language which rescinds Within the $119,091,000 appropriated for $5,600,000 to continue design work on the new $55,000,000 from the Southeast Federal Center GSA, funds shall be available for the ongoing courthouse in Seattle, Washington. Should in Washington, D.C. ICN project, as directed by the House. Amendment No. 60. Makes available this amount be insufficient to fully fund the The conferees have also included funds for $637,000,000 for repairs and alterations in- design efforts for this facility, the conferees the CLASS project in Lincoln, Nebraska, a stead of $713,086,000 as proposed by the House encourage the GSA to reprogram funds from telecommunications demonstration project and $627,000,000 as proposed by the Senate. other available resources. for an on-line accredited education program Amendment No. 61. Inserts Senate lan- leading to a high school diploma or its equiv- BROOKLYN, NEW YORK COURTHOUSE guage authorizing unobligated balances in alent. The conferees are aware of the ‘‘space the repairs and alterations account to be emergency’’ facing the U.S. District Court, used for implementing security improve- REVIEW OF FEDERAL SUPPLY SCHEDULES Eastern District of New York. GSA has pro- ments at Federal buildings, upon compliance The Senate included language which di- posed two projects to accommodate the with reprogramming guidelines of the Com- rected the General Services Administration space requirements of the Brooklyn Court- mittees on Appropriations. (GSA) to postpone rules to implement sec- house acquisition and renovation of the adja- Amendment No. 62. Inserts and modifies tion 1555 of the Federal Acquisition and cent General Post Office Building and demo- Senate language providing funding for re- Streamlining Act (FASA) until a comprehen- lition of the Federal building portion of the pairs and alterations of certain Federal sive analysis of the effect of such rules has Celler complex, followed by construction of a buildings and facilities. been completed. The House did not address new court annex on that site. Earlier Con- Amendment No. 63. Makes available this issue. The conferees agree that considerable con- gresses have appropriated funds for the ini- $304,757,000 for basic repairs and alterations cern has been raised by some private sector tial phases of his project. The House bill con- as proposed by the Senate instead of vendors on the effect of the implementation tained $49,400,000 to partially fund the ren- $307,278,000 as proposed by the House. of section 1555 of FASA, and believe that ad- ovation of the General Post Office Building. Amendment No. 64. Restores House lan- ditional study should be undertaken before The Senate bill contained no funding be- guage earmarking $100,000 for the advanced implementation of some of the more con- cause GSA had notified the Committee that design for the renovation of the national vet- troversial schedules. Therefore, the con- it would not be able to expend any additional erinary science laboratory and a ferees direct that the GSA enforce a one-year funds in fiscal year 1996. The conferees sup- biocontainment facility. moratorium on the implementation of sec- port continuation of this project and urge Amendment No. 65. Makes available tion 1555 of FASA for certain more con- GSA to submit a prospectus in fiscal year $2,326,200,000 for rental of space instead of troversial schedules until final action on this 1997 to move to the next phase. $2,341,100,000 as proposed by the House and $2,327,200,000 as proposed by the Senate. matter is taken by the appropriate Congres- RAPTOR RESEARCH CENTER Amendment No. 66. Makes available sional committees. The conferees support the GSA’s efforts to $1,302,551,000 for building operations as pro- CHILD CARE CENTERS consolidate the Raptor Research Center at posed by the Senate instead of $1,389,463,000 On June 28, 1995, the U.S. Department of Boise State University in a building donated as proposed by the House. Also inserts Sen- Justice submitted to Congress its report, to the University. It is the understanding of ate language earmarking $1,000,000 for sup- ‘‘Vulnerability Assessment of Federal Facili- the conferees that GSA’s renovation costs of port for the Xth Paralympiad. ties’’. This document establishes minimum the donated building will be far less than Amendment No. 67. Restores and modifies security standards for Federal buildings. leasing new space. House language moving the Pennsylvania Within these standards, the conferees believe TELECOMMUTING CENTERS Avenue Development Corporation to the the General Services Administration (GSA) Of the funds made available by this Act for General Services Administration (GSA). should review the placement of child care Amendment No. 68. Limits obligations telecommuting centers in northern Virginia, centers in Federal buildings. The conferees from the Federal Buildings Fund to the conferees urge GSA to establish at least direct the Administrator of GSA to provide $5,066,149,000 instead of $5,066,822,000 as pro- one center at a suitable location in western the House and Senate Committees on Appro- posed by the House and $5,086,019,000 as pro- Fairfax County, one in Loudoun County, and priations an evaluation of future plans to en- posed by the Senate. sure the safety of child care centers within one in eastern Prince William County, Vir- Amendment No. 69. Inserts and modifies the standards, as established. ginia. language proposed by the Senate which pro- CONCORD, NEW HAMPSHIRE, PARKING vides funds for GSA policy and operations GENERAL SERVICES ADMINISTRATION The conferees agree that given the lack of and appropriates $119,091,000 instead of OFFICE OF INSPECTOR GENERAL available parking at the newly constructed $113,827,000 as proposed by the Senate and Amendment No. 70. Appropriates $33,274,000 Warren B. Rudman Federal Courthouse in $111,629,000 as proposed by the House. instead of $32,549,000 as proposed by the H 10826 CONGRESSIONAL RECORD — HOUSE October 25, 1995

House and $34,000,000 as proposed by the Sen- total cost. The conferees require that the Ar- GENERAL PROVISIONS—OFFICE OF PERSONNEL ate. chivist provide a report to the House and MANAGEMENT The conferees request that the Office of the Senate Committees on Appropriations, de- Amendment No. 87. Restores House lan- Inspector General (IG) audit the policies and tailing the National Archives and Records guage regarding the title of this section. procedures for using the Flexiplace Administration five-year plan on the activi- Amendment No. 88. Restores and modifies Telecommuting Centers to determine ade- ties it desires to undertake in the areas of House language allowing Federal agencies to quacy of the methods currently being used cataloging, archiving, and digitizing activi- reimburse OPM for examinations for com- by agencies to account for employee time ties. The plan shall include detailed budget mon occupations by not allowing for delega- and attendance. Additionally, the IG should requirements for fiscal years 1996 and 1997, tion of examinations for Administrative Law review the process used by GSA to determine and estimated requirements for the remain- Judges. the costs and benefits of additional ing years. Amendment No. 89. Restores House lan- telecommuting centers and submit a report ARCHIVES FACILITIES AND PRESIDENTIAL guage allowing OPM to withhold state taxes on this review to the Committees on Appro- LIBRARIES from payments to annuitants. priations no later than February 1, 1996. REPAIRS AND RESTORATION Amendment No. 90. Restores House lan- GENERAL PROVISIONS—GENERAL SERVICES guage extending retirement provisions under Amendment No. 81. Inserts Senate lan- ADMINISTRATION the Federal Workforce Restructuring Act to guage appropriating $1,500,000. individuals taking delayed buyouts. Amendment No. 71. Inserts Senate lan- The conferees are aware of requirements Amendment No. 91. Restores House lan- guage adding Judicial Conference as a par- that may exist for repair and alteration of guage allowing OPM to charge fees to other ticipant in determining Courthouse con- Presidential Libraries around the country, Federal agencies for the dissemination of struction priorities. especially the Hoover and Eisenhower librar- employment information. Amendment No. 72. Inserts Senate lan- ies. The conferees direct that the National guage adding Judicial Conference as a par- Amendment No. 92. Inserts Senate lan- Archives submit a plan for any required re- guage changing reporting requirements for ticipant in determining Courthouse con- pairs or alterations of the Hoover Presi- struction priorities. OPM on pay status of employees outside the dential Library and the Eisenhower Presi- continental U.S. Amendment No. 73. Restores House lan- dential Library to the Committees on Appro- guage authorizing GSA to accept and retain priations. UNITED STATES TAX COURT income to offset the cost of flexiplace work SALARIES AND EXPENSES telecommuting centers. NATIONAL HISTORICAL PUBLICATIONS AND Amendment No. 93. Appropriates $33,269.000 Amendment No. 74. Restores House lan- RECORDS COMMISSION instead of $32,899,000 as proposed by the guage authorizing the transfer of $2.2 million GRANTS PROGRAM House and $33,639,000 as proposed by the Sen- to the Charles County Community College Amendment No. 82. Appropriates $5,000,000 ate. and repeals a previous authorization. as proposed by the Senate instead of Amendment No. 75. Deletes House lan- $4,000,000 as proposed by the House. TITLE V—GENERAL PROVISIONS guage providing transfer authority between THIS ACT OFFICE OF GOVERNMENT ETHICS ‘‘Operating Expenses’’ and ‘‘Policy and Over- Amendment No. 94: Deletes House lan- SALARIES AND EXPENSES sight’’. guage prohibiting the establishment of of- Amendment No. 76. Inserts and modifies Amendment No. 83. Appropriates $7,776,000 fices outside the District of Columbia unless Senate language prohibiting excessing land as proposed by the House instead of $8,328,000 certain criteria are met. in the vicinity of Norfork Lake, Arkansas by as proposed by the Senate. Amendment No. 95. Deletes House lan- making the provision permanent. OFFICE OF PERSONNEL MANAGEMENT guage authorizing the payment of incentive Amendment No. 77. Inserts and modifies SALARIES AND EXPENSES awards. Senate language prohibiting excessing land Amendment No. 96. Deletes House lan- in the vicinity of Bull Shoals Lake, Arkan- Amendment No. 84. Appropriates $88,000,000 instead of $85,524,000 as proposed by the guage making reference to the Federal Qual- sas by making the provision permanent. ity Institute. Amendment No. 78. Inserts Senate lan- House and $93,106,000 as proposed by the Sen- ate and inserts language proposed by the Amendment No. 97. Restores and modifies guage amending previous language concern- House language concerning the designation ing a land transfer in Hawaii. Senate regarding health promotion pro- grams. of Front Royal, Virginia, as a Customs Serv- MERIT SYSTEMS PROTECTION BOARD Reductions from President’s budget are as ice Port of Entry by making the provision SALARIES AND EXPENSES follows: $14,423,000 from occupational testing; permanent. Amendment No. 79. Appropriates $24,549,000 $2,524,000 from Job Information Offices; Amendment No. 98. Restores House lan- as proposed by the Senate instead of $2,720,000 from Regional Offices; $808,000 from guage providing that fifty percent of obli- $21,129,000 as proposed by the House. Federal Quality Institutes; $140,000 from gated balances may remain available for cer- International Affairs Office; $376,000 from Ex- tain purposes. NATIONAL ARCHIVES AND RECORDS Amendment No. 99. Restores House lan- ADMINISTRATION ecutive Direction; $2,605,000 from Common Services; and $2,200,000 from Research Office. guage establishing the rate of pay for the OPERATING EXPENSES The conferees provide an additional $5,224,000 Chief of Police of the Bureau of Engraving Amendment No. 80. Appropriates for office close-down costs. and Printing. $199,633,000 as proposed by the Senate instead Amendment No. 100. Inserts Senate lan- of $193,291,000 as proposed by the House. SENIOR EXECUTIVE PAY guage regarding the Mint Revolving Fund. Within this amount, the conferees have pro- Members of the Senior Executive Service Amendment No. 101. Inserts and modifies vided a total of $1,482,000 for the Information (SES), Senior Level, Senior Technical, Board Senate language regarding the Mint Revolv- Security Oversight Office. The conferees fur- of Contract Appeal Judges and other simi- ing Fund. ther recommend that the National Security larly situated Federal employees did not re- Amendment No. 102. Inserts Senate lan- Council continue to provide guidance and ceive the 2 percent comparability raise guage regarding the Mint Revolving Fund. policy support to ISOO. granted to all other Federal employees on Amendment No. 103. Inserts Senate lan- ADMINISTRATIVE REDUCTIONS January 1, 1995. The conferees recognize that guage regarding the Mint Revolving Fund. during this time of government reorganiza- Amendment No. 104. Inserts and modifies The conferees agree to apply the same tion and downsizing, it is especially impor- Senate language regarding the Mint Revolv- level administrative reductions to the Na- tant that the career executive leadership, ing Fund. tional Archives and Records Administration which is bearing the burden of leading their Amendment No. 105. Inserts Senate lan- appropriation as were applied to other appro- agencies through this difficult period, be guage regarding the Mint Revolving Fund. priations. The reduction totals $1,482,000 and treated in a fair and equitable manner. Amendment No. 106. Inserts Senate lan- shall be applied to the following object class- Therefore, the conferees urge the President guage clarifying intent by adding numis- es at the discretion of the Archivist: 21, trav- to provide the same comparability and local- matic collectibles to list of covered items. el; 22, transportation of things; 23, commu- ity increase announced for all other employ- Amendment No. 107. Inserts and modifies nications and utilities; 24, printing, repro- ees to these career executives in January, Senate language regarding the Mint Revolv- duction; 25, other services; 26, supplies and 1996. ing Fund. materials; and 31, equipment. Amendment No. 85. Makes available Amendment No. 108. Deletes House lan- CATALOGING, ARCHIVING, AND DIGITIZING $102,536,000 for insurance and retirement pro- guage prohibiting funds in this Act to be ACTIVITIES grams as proposed by the House instead of used for abortions unless the life of the The conferees agree to include $4,500,000 for $93,261,000 as proposed by the Senate. mother is endangered (addressed in amend- cataloging, archiving, and digitizing activi- Amendment No. 86. Deletes House lan- ment number 109). ties at the National Archives as detailed in guage prohibiting a reduction-in-force in the Amendment No. 109. Inserts and modifies the Senate report. However, the conferees Office of Federal Investigations prior to Senate language prohibiting the funds in expect the Archives to submit a finalized June 30, 1996. The conferees agree that such this Act to be used for abortions unless the plan for the long-term requirements for a reduction in force should not take place be- life of the mother is endangered or the preg- these activities, including an estimate of the fore March 31, 1996. nancy is the result of an act of rape or incest October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10827 modified so that this provision shall become agree that training that produces high levels agreements with state and local govern- effective once current contracts expire. of psychological stress may be absolutely ments for the construction or acquisition of Amendment No. 110. Restores House lan- necessary in the training of law enforcement border facilities. guage placing procurement authority for Tax officers, pilots, and other occupations that Amendment No. 137. Deletes Senate lan- Systems Modernization under the Secretary encounter high levels of stree in the course guage requiring each agency to achieve a of the Treasury. of official duties. five percent reduction in energy costs during Amendment No. 111. Restores House lan- In addition, this language is not intended fiscal year 1996 and makes up to 50 percent of guage providing for relief of certain weekly to affect any training for displaced workers the savings available to the agency. periodical publications that have been ad- designed to help them find new employment. Amendment No. 138. Deletes Senate lan- versely affected by a 1989 mail classification Amendment No. 123. Deletes House lan- guage reducing maximum leave that can be regulation designed to control the inclusion guage prohibiting the use of the Exchange accumulated by members of the Senior Exec- of loose supplements in magazines and simi- Stabilization Fund to bolster foreign cur- utive Service. lar publications. rencies (addressed in amendment number Amendment No. 139. Inserts Senate lan- Amendment No. 112. Deletes House lan- 129). guage transferring a building. guage limiting training funds to topics that Amendment No. 124. Deletes Senate lan- Amendment No. 140. Inserts and modifies meet identified needs for knowledge skills, guage requiring the Executive Branch to re- Senate language providing law enforcement and abilities bearing directly upon the per- port to Congress on detailees and where they credit to law enforcement officers hired dur- formance of official duties. are assigned. ing the three year transition period before Amendment No. 113. Inserts Senate lan- Amendment No. 125. Inserts Senate lan- FERS was fully implemented. guage increasing the amount the Secret guage prohibiting the expenditure of funds Amendment No. 141. Deletes Senate lan- Service can expend at one non-governmental for implementation of agreements in guage expressing sense of Senate that the property of a sitting President from $75,000 nondisclosure policies unless certain provi- GSA and FAA should review personnel rules to $200,000 for security enhancements. sions are included. and labor agreements regarding Federal as- Amendment No. 114. Inserts Senate lan- Amendment No. 126. Inserts and modifies sistance when relocating personnel because guage prohibiting implementation of an ATF Senate language requiring mandatory use of of a change of duty station. ruling pertaining to the citric acid content FTS2000. DENVER INTERNATIONAL AIRPORT EMPLOYEE of vodka. Amendment No. 127. Inserts Senate lan- RELOCATION CITRIC ACID IN VODKA guage addressing death benefit requirements The conferees are concerned about reports for survivors of Secret Service officers. Although conferees agree with the Senate that, under FAA and GSA rules, employees Amendment No. 128. Inserts and modifies proposal that no part of any appropriation in the Denver, Colorado area were permitted Senate language pertaining to future con- made available in this Act shall be used to to claim personal housing relocation allow- tract requirements for carrying mail in Alas- implement the ATF and Treasury decision ances in connection with their transfer from ka. FAA facilities at Stapleton Field to the new ATF-360 (59 FR 67216, 12/29/94), which limited Amendment No. 129. Inserts and modifies Denver International Airport, even in some the amount of citric acid that could be added Senate language regarding the Exchange cases where an employee’s new home was to vodka to 300 parts per million (PPM), the Stabilization Fund; modified for technical farther from the new job site than the em- conferees recognize the complex nature of corrections. the various issues surrounding any standard ployee’s former home. This kind of misuse of of identity determination with respect to the EXCHANGE STABILIZATION FUND public funds is unacceptable and insults labeling of vodka. There fore, the ATF is di- The conferees agree that to assure contin- American taxpayers. The conferees expect rected to conduct a study, in consultation ued United States government involvement GSA and FAA to review and reform current with industry members, to determine wheth- in international monetary transactions—and personnel rules and labor agreements to er a more reasonable industry standard can the ability to continue to use the Exchange avoid any repetition of this experience and be established that better balances the inter- Stabilization Fund in the manner that the to restrict relocation allowances to cases in ests of the consumer, the industry, and the Congress has supported for over 60 years— which a job site transfer reasonably and government. this provision should allow for contempora- proximately necessitates a change in home Amendment No. 115. Inserts Senate lan- neous and confidential certification by the site. guage requiring that Secret Service pay for Secretary of the Treasury. CONFERENCE TOTAL—WITH COMPARISONS This need for confidentiality is supported scheduled overtime when they have worked The total new budget (obligational) au- by the market sensitivity of these trans- at least 2 hours of unscheduled overtime for thority for the fiscal year 1996 recommended actions and is consistent with the confiden- protective duties. by the Committee of Conference, with com- tial nature of the monthly reports that the TITLE VI—GOVERNMENTWIDE GENERAL parisons to the fiscal year 1995 amount, the Treasury has provided and continues to pro- PROVISIONS 1996 budget estimates, and the House and vide to the Banking Committees on a con- Senate bills for 1996 follow: DEPARTMENTS, AGENCIES, AND CORPORATIONS fidential basis. Amendment No. 116. Deletes House lan- Amendment No. 130. Inserts and modifies New budget (obligational) guage regarding employment of non-U.S. Senate language prohibiting a cost of living authority, fiscal year citizens. adjustment during 1996 for Members of Con- 1995 ...... $23,500,947,000 Amendment No. 117. Deletes House lan- gress; modified to include Federal judges, Budget estimates of new guage prohibiting the use of grant funds for and executive level personnel. (obligational) authority, the acquisition of goods or services unless Amendment No. 131. Inserts Senate lan- fiscal year 1996 ...... 24,896,488,000 certain announcement criteria is met. guage transferring two seized and forfeited House bill, fiscal year 1996 . 23,177,286,500 Amendment No. 118. Deletes Senate lan- A–37 Dragonfly jets to the National War- Senate bill, fiscal year 1996 23,141,970,000 guage limiting the number of political ap- plane Museum in Geneseo, NY for museum Conference agreement, fis- pointees. purposes. cal year 1996 ...... 23,163,754,000 Amendment No. 119. Inserts Senate lan- Amendment No. 132. Reported in disagree- Conference agreement guage clarifying the use of energy savings ment. compared with: from Federal agencies to permit 100% of sav- Amendment No. 133. Inserts Senate lan- New Budget ings to be used as contained in P.L. 102–393. guage banning tobacco vending machines in (obligational) author- Amendment No. 120. Deletes House lan- Federal buildings to which children have ac- ity, fiscal year 1995 ...... ¥337,193,000 guage on establishing the Commission on cess. Budget estimates of new Federal Mandates. Amendment No. 134. Deletes Senate lan- (obligational) author- Amendment No. 121. Deletes House lan- guage concerning direct delivery of high ity, fiscal year 1996 ...... ¥1,732,734,000 guage regarding the FDA Building. value supplies. House bill, fiscal year 1996 ...... ¥13,532,500 Amendment No. 122. Restores and modifies HIGH VALUE SUPPLIES AND DEPOT SYSTEM House language prohibiting Federal training Senate bill, fiscal year The conferees direct that the General Serv- not directly related to the performance of of- 1996 ...... +21,784,000 ices Administration should increase use of ficial duties. direct deliver high-dollar value supplies, and JIM LIGHTFOOT, FEDERAL TRAINING PROGRAMS only stock items that are profitable, and re- FRANK R. WOLF, The language in this section is intended to view the depot system ERNEST ISTOOK, prohibit expenditure of Federal funds on Amendment No. 135. Inserts and modifies JACK KINGSTON, training that is offensive to Federal workers Senate language establishing an Independent MIKE FORBES, and unnecessary in the prosecution of their Commission on Restructuring the Internal BOB LIVINGSTON, official functions. The conferees in no way Revenue Service by making technical correc- Managers on the Part of the House. intend this legislation to prohibit any type tions. RICHARD C. SHELBY, of training that is necessary for Federal Amendment No. 136. Inserts and modifies JAMES M. JEFFORDS, workers to effectively complete their as- Senate language requiring the Administrator BEN NIGHTHORSE signed tasks. In particular, the conferees of GSA to review the feasibility of leasing CAMPBELL, H 10828 CONGRESSIONAL RECORD — HOUSE October 25, 1995 MARK O. HATFIELD, While the GOP tax cut would give parents cut back on nutrition programs for BOB KERREY, a tax credit of up to $500 per child, the Medi- those who are the most vulnerable in ROBERT C. BYRD, care plan would increase fees—taxes—on the our society. Managers on the Part of the Senate. elderly. What’s the point of giving with one hand only to take away with the other? Mr. Speaker, those are the choices of f The Republicans in Congress deserve the the Republican Party in this budget reconciliation bill. Those are the NO TAX CUTS WHILE TRYING TO credit for their efforts to balance the budget. The Democrats who held sway for decades choices that they made about this gen- BALANCE THE BUDGET had the power to balance the budget—even eration of Americans. Those are the (Mr. GENE GREEN of Texas asked when Republicans occupied the White choices they made about that genera- and was given permission to address House—but never did. tion of Americans that fought the the House for 1 minute to revise and But with the tax cut, the Republicans world wars, that fought the Korean extend his remarks and include extra- erode the chances that the budget will actu- ally be balanced in seven years and signal a conflict, that fought in Vietnam, who neous matter.) fought hard for democracy, who fought Mr. GENE GREEN of Texas. Mr. fragile economy that their spirit may be willing, but their commitment is weak. hard to save Western civilization in its Speaker, an editorial ran in yester- President Clinton has done little to clarify time of need, but the Republicans are day’s Houston Chronicle that affirmed the debate. While vowing to veto the GOP not prepared to fight for their Medi- what a lot of us have been saying for tax cuts, he worried in Houston recently that care. months. It is ridiculous to cut taxes at he might have raised taxes too much in 1993 Mr. Speaker, we should fight as hard in his successful attempt to temporarily a time when the Federal Government is for their Medicare as they fought on desperately trying to balance its budg- bring down the deficits. If taxes are too high, then why his opposition to reducing them? the beaches of Normandy, or the beach- et. In fact, Congress’ own analysts es of Iwo Jima, or Okinawa, or in pointed out that the tax cut would Now the president says he just misspoke, but such wavering at the top will not produce Korea. But we are going to cut that needlessly add almost $100 billion to public understanding. Medicare $270 billion. the swollen national debt and increase One can debate whether the GOP tax cuts Why? Because the Republicans did taxes for working people who make amount to a ‘‘giveaway for the rich’’ (much not want to make other choices. They under $30,000. No one likes to pay taxes. of the money will flow out in dribs and drabs chose not to have high-income Ameri- It would be great to give every tax- to the middle class). However, one feature of cans continue to pay their fair share. payer a tax cut. We should balance our the Republican agenda would drastically af- In fact, what they chose was what the budget first. fect the large number of Americans who Speaking of the budget, the new ma- make up the working poor. Wall Street Journal points out. The There is a national consensus that the fed- jority has been backslapping and con- choose to give them a tax cut. As the eral welfare system needs reform. Congress’ Wall Street Journal said to the rich of gratulating themselves for weeks about proposed welfare reform would limit and passing a balanced budget, but wait a this country, ‘‘Don’t do anything yet, eventually end welfare for hundreds of thou- but start salivating.’’ Why should they minute, there is a problem. I see on sands of families, but the Republicans’ in- start salivating? Because the tax bill page 3 of the budget conference report, consistent budget plan would reduce the it says in the budget document in the Earned Income Tax Credit program that passed on Wednesday by the House of year 2002 that we will have a $108 bil- helps keep poor Americans on the job and off Representatives could turn out to be lion deficit. Only in Washington could the welfare rolls. the biggest tax saving bonanza in years How can members of Congress insist on a deficit of $108 billion be considered for upper-income Americans so we have passing a tax credit for middle-class parents $270 billion in cuts in Medicare to pay balanced in the year 2002, when we are if they have to make things tougher on the supposed to have a balanced budget. for $245 billion in cuts to some of the poorest families in order to pay for it and wealthiest people in this country. As In their heart they know the budget still balance the budget? is not balanced. All this pomp and cele- Conservatives argue that the Earned In- we see, under the Republican plan, Mr. bration is one big joke on the seniors of come Tax Credit is rife with fraud and abuse, Speaker, 64 percent of the wealthy fam- this country. Do they know why? Yes, but the proper response is to step up enforce- ilies in this country get a tax break, because that $108 billion will come out ment against the abusers. but 86 percent of middle-income fami- of the Social Security trust fund to f lies get a tax increase or they pay the balance that budget. same. Mr. Speaker, I include for the THE CHOSEN Those are choices that the Repub- RECORD an article from the Houston The SPEAKER pro tempore. Under a licans have made in this proposal. They Chronicle of Tuesday, October 24, 1995. previous order of the House, the gen- have chosen to give the wealthy, the [From the Houston Chronicle, Oct. 24, 1995] tleman from California [Mr. MILLER] is rich, those who do not need a tax cut, a tax cut. They chose to pay for it by BREATH AND TAXES—BALANCED BUDGET recognized for 5 minutes. SHOULD COME BEFORE ANY TAX CUT Mr. MILLER of California. Mr. cutting the health care to our elderly, Democrats are arguing that Republicans in Speaker, the reconciliation legislation, by cutting the health care to our poor, Congress are trying to cut the taxes of the that legislation which will end up con- by cutting the health care to millions rich and the benefits of the poor. Repub- trolling all spending and tax cuts to of Americans’ children. They chose to licans counter that the Democrats are wag- come before the Congress this year, is pay for it by cutting student loans, and ing a campaign of fear and class warfare. about choices. It is about choices that they chose to pay for it by cutting There is some truth to both these charges, the Republicans have made for millions school lunches. They chose to create but most Americans are neither rich nor millions of desperately poor Americans poor. They should view the political battle and millions of Americans. It is about as logic vs. irrationality. So far, logic is los- the choice that they made to cut Medi- so that they could take care of the ing. care by $270 billion. It is about the wealthiest in this country. Take for instance, the recent vote of the choice they made in those Medicare They also chose to hold the Defense Senate Finance Committee to cut taxes by cuts, Medicaid cuts, to remove nursing Department harmless. Everybody else some $245 billion. No American enjoys pay- home standards for the protection of has to contribute to balancing the ing high taxes, but a large majority of Amer- our elderly, to remove our elderly from budget, but not the Department of De- icans believe that the nation’s No. 1 priority fense. is lowering the federal deficit, a goal that the entitlement of having nursing the tax cut would make more difficult. home care paid for if they and their They also chose to hold harmless cor- Republicans say they can cut taxes and families cannot afford it in the twilight porate welfare, the large timber com- still balance the budget in seven years. But of their lives. It is about the choices panies, the large mining companies, Congress’ own analysts point out that the that they made to cut $10 billion from the large oil companies on which this tax cut would needlessly add almost $100 bil- student loans so that now America’s bill lavishes billions of dollars in sub- lion to the swollen national debt—debt that students, their families, are deeper in sidies to those who do not need it, to no balanced budget will ever diminish. Balancing the budget requires hard debt to pay educational costs than any some of the most profitable companies choices, such as the necessity to curb spend- time in the history of this country. It in this country. But those were the ing on Medicare. But why make the choices is about the choices that they made to choices that the Republicans made. any harder than they have to be? cut the school lunch program and to They chose to lead those people out of October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10829 the sacrifice that millions of Ameri- that system will be bankrupt, bank- on a program known as Medicaid. It is cans will be making in the coming rupt by the year 2002. a health care program for kids from years to balance the budget, to balance Now sure it is easy to stand up here, lower income families. The Medicaid the budget so we can have a prosperous and use lots of fancy charts, and quote Program provides for immunizations economy, but they chose that some this newspaper and that newspaper, but for these children, health screening, ex- would not have to enlist in that fight. who is doing the hard work back here aminations, and if they get very sick, Mr. Speaker, I say to my colleagues, to stand up to government spending it provides for their hospital care. If you’re very wealthy, you won’t have and say, ‘‘Enough is enough; you can’t The Republican plan, which the gen- to enlist in that fight. If you’re a de- spend more than you bring in’’? tleman from Colorado just described, is fense contractor, you won’t have to en- I stopped one time a rancher. He told going to make a massive cut in this list in that fight. If you’re on the cor- me in Colorado; Meeker, CO; said to Medicaid Program. As a direct result of porate welfare dole, you won’t have to me, ‘‘Scott, before you put any more it, many of the poor children in Amer- enlist in that fight. But if you’re aged, water in the bucket you better plug the ica who are sick will not have health or if you are a student seeking an edu- holes,’’ and I venture to say to the gen- care, quality health care, available to cation, or a child seeking nutrition, or tleman from California that is exactly them. a family seeking a safe, a safe and what this Republican bill does. Yesterday morning I visited La healthy, nursing home for your grand- The Democrats have had an oppor- Rabida hospital in Chicago. It is an parents, or your parents, or your tunity to bring this budget in balance amazing hospital. Eighty-five percent spouse, you have to enlist, and you for 25 years. They have refused to do it. of the revenue to this hospital comes have to pay, and you have to pay more We are not going to refuse to do it. from this Medicaid Program. It is a because the Republicans chose that Sure we are going to take heat from beautiful hospital with wonderful peo- many of the well off in this country you, sure we are going to take cheap ple, doctors and nurses and administra- would have to pay less and not contrib- shots about this and that, and sure we tors, and they took us on a tour and ute at all. have to make tough decisions, not nec- gave us a chance to meet some of the f essarily between good and bad pro- children; great kids, very sick children, grams, but between good and good pro- but kids who, with their parents, are THE REPUBLICANS ARE MAKING grams, but we are willing to make fighting a struggle every day to make TOUGH DECISIONS WHILE BAL- those decisions because, if we do not, it. They are fighting it, and the re- ANCING THE BUDGET you will not, and if you will not, this sources they use are the Medicaid Pro- The SPEAKER pro tempore. Under a country faces a fiscal disaster. gram. previous order of the House, the gen- Mr. Speaker, the people of this coun- I met Robert. Robert is a perfect kid, tleman from Colorado [Mr. MCINNIS] is try deserve a government that can con- perfect except for diabetes. But if you recognized for 5 minutes. trol its spending. The people of this meet him and you see his smile and his Mr. MCINNIS. Mr. Speaker, I cannot country deserve a government that attitude, you think ‘‘I want to give this believe the gentleman from California knows how to balance its checkbook. kid a chance. I want Medicaid to be [Mr. MILLER]. What? Are you putting The senior citizens of this country de- there to pay his hospital bill, so that your head in the sand and forgetting serve a Medicare Program that is not he has a chance in life.’’ Yet, the Re- the deficit: This country is facing a going to go bankrupt in 7 years. publican side is suggesting that Robert deficit at a rate of $37 million an hour. and many like him are, frankly, cas- b 1945 I ask the gentleman from California go ualties of this budget debate. out and show me one of your constitu- The people of this country can expect The gentleman from Colorado a few ent families out there that can over- their Congress to act in a responsible, minutes ago was chiding us for saying spend their budget at the same per- a fiscally responsible manner. I would the Democrats can never tell us where centage rate or proportionate to their urge all Members to set aside the par- to cut spending. Let me give a couple own budget as this Federal Govern- tisan politics and take a look at the of examples in his own Republican rec- ment overspends its budget. When are best interests of this country. The best onciliation bill where they can cut you going to come to your senses, my interest of this country is that this spending. First, let me go back to this colleagues? We got to get this budget country quit spending more than it chart. Do you not think at a time when in balance. If we do not, there is no brings in. we are cutting health care for Robert greater threat to the future of this f under Medicaid, that we ought to think country. There is nothing greater that twice about giving 64 percent of the is going to break the backbones of the SPEAKING FOR THE POOR wealthy families in America a tax working people of this country than al- CHILDREN OF AMERICA break, a tax cut? These are the lowing this country to continue to The SPEAKER pro tempore (Mr. wealthiest families in this country, spend, and spend, and spend, and spend. WELDON of Florida). Under a previous making over $150,000 a year, and the You can divert all the attention you order of the House, the gentleman from Republicans believe they need a tax want to away from what I am saying, Illinois [Mr. DURBIN] is recognized for 5 cut. This is not new. The Republicans but the fact is, if you do not do some- minutes. have traditionally believed that if you thing about this deficit, the people in Mr. DURBIN. Mr. Speaker, I take the make the rich rich enough, it will help this country are going to face a fiasco, well this evening on behalf of a special working families. a financial fiasco the likes of which we interest group. This is not an ordinary Democrats see it a little differently. have not seen. special interest group. In fact, it is not We are worried about the fact that 86 Now the gentleman talks about Medi- a very effective one here in Washing- percent of middle-income families are care, how horrible that we do some- ton. This special interest group does going to see a tax increase. If you want thing about a Medicare. My colleagues, not have a Political Action Committee, to come up with some money to pay for we better do something about Medi- they do not own a fax machine. In fact, Robert and for other children under care. It is going to be bankrupt. It was they do not even vote. Yet, they are an Medicaid, let me suggest to my Repub- this body that created Medicare. It is a interest group which is going to be af- lican friends, take out the benefits for good program, it was intended for good fected by a bill which is on the floor of the fat cats in your bill, take out the purposes, but, as many other Federal the House of Representatives tomor- tax breaks for the wealthiest families. programs, it has gotten out of hand, row. I am speaking for them because, if we are going to reduce the deficit the spending has gong crazy. The trust- frankly, very few people this evening and not hurt poor children like Robert, ees, bipartisan by the way, Democrat on the Republican side of the aisle do not go after those kids for the bene- and Republicans, some of the trustees want to acknowledge this group. fit of wealthy families. appointed by President Clinton, have The special interest group I am Let me also give you another idea, if come to a mutual agreement, and that speaking on behalf of are the poor chil- you want to save $17 billion. The Re- is if we do not do something with Medi- dren in America, the poor children in publicans close a loophole which has care, if we do not reform Medicare, America who rely almost exclusively existed in the law. They are going to H 10830 CONGRESSIONAL RECORD — HOUSE October 25, 1995 allow alternate income, minimum in- The SPEAKER pro tempore. All Federal spending has gone up 300 per- come, for corporations not to be taxed. names on the list have been completed. cent in the last 15 years—is it asking Let me tell you what that means. If a Under a previous order of the House, too much to give back less than 2 per- corporation is profitable in this coun- the gentleman from Tennessee [Mr. cent? try and has hired a sufficient number DUNCAN] is recognized for 5 minutes. Seventy percent of this tax cut goes of attorneys and accountants to escape Mr. DUNCAN. Mr. Speaker, I want to to people making less than $50,000 a all tax liability, the Republicans say briefly discuss several items which are year. Do we ever think about that? ‘‘Fine, great, let them off the hook. directly or indirectly related to the Most Republicans support flat tax They pay nothing,’’ even though they budget reconciliation presently before which totally excludes people making made a profit. us. less than $26,000 or couples making less We decided under President Reagan, First, let me say that no one has cor- than $38,000 from Federal income taxes not a screaming liberal, under Presi- nered the market on compassion. No altogether. dent Reagan, to put an alternate mini- one has a monopoly on virtue. Do you ever think about that? Who is mum tax and say that every corpora- Yet some around here seem to believe really for lower income people—some- tion has to pay something if it is prof- that they have. one who wants to keep their taxes high itable. Is that unreasonable? I do not Every time any budget cut is pro- like now, or someone who wants to think it is; $17 billion will be taken out posed, we are told that it is mean spir- greatly reduce their taxes. Third, last week we passed a Medi- of Medicaid for poor children for their ited, or that it shows a lack of compas- care bill that provides for a huge in- health care. sion. Let me tell you what it means in our Yet what really lacks compassion is crease in Medicare spending. In Tennessee, we now spend approxi- State of Illinois. When these cuts are for the Federal Government to take so mately $5,000 per year on the average being made, it means that in my State much money from families that they recipient of Medicare. This will go up of Illinois, 128,000 children in Illinois, don’t have enough money left to sup- to over $7,000, an increase of $2,000 over port their children in the way they poor children, will not get quality the next 7 years. health care. That is what is part of this should. This bill provides for an increase in Republican plan. They tell us they are This is what is happening in this Medicare spending at twice the rate of going to balance the budget. They have country today where the average per- inflation. And this is called a cut. not told us what we are going to do son has to pay half of his or her income There is no disagreement that Medi- about Robert and his diabetes. They now in taxes when you count taxes of care is going broke. The President’s have not told us what we are going to all types, Federal, State, and local— own trustees tell us this. do about La Rabida hospital, Children’s sales, property, income, gas, Social Se- Is it compassionate to sit around and Memorial Hospital, Wyler’s Children’s curity, and so forth. let it go under. Is it right just to fix it Hospital, Presbyterian St. Luke’s, What really shows a lack of compas- until after the next election. Children’s Hospital, that depend on sion is an unwillingness to cut any- The Medicare bill we passed may not Medicaid to serve these poor children. thing so that we can get federal spend- be perfect. But it is sure not a cut; it is I stand tonight to speak on behalf of ing under control. a huge increase. this special interest group. They are What really shows a lack of compas- Fourth, we will spend $4 billion in never going to come to my fundraisers. sion is to continue running up large Haiti by the time our troops pull out They are not going to send me a PAC deficits so that we absolutely destroy next February. check. They do not own a fax machine, the economic futures of our children. Now, the President wants to send they cannot fax a message, but these What really shows a lack of compas- 20,000 to 25,000 troops to Bosnia. We are kids are going to be nailed this week sion is to tell the people of this coun- already paying almost one third of the by the Republican budget plan. It is to- try, through votes on this floor, that so-called peacekeeping costs there now. tally unnecessary. For at least those bureaucrats can spend their hard- We will end up spending billions in kids and their families, I hope the peo- earned money for them better than Bosnia, too, if we are not careful, and ple of this country will contact their they can themselves. the situation in these places is going to Members of Congress and urge them to And let me say something else—al- go right back the way it was as soon as vote against the Gingrich Republican most every leading economist tells us we stop pouring our billions and bil- budget plan. that our $5 trillion national debt really lions into those places. f holds this country back economically. We should not send young American Times are good for some now. But men and women to fight and die on for- ITEMS RELATED TO THE BUDGET they could and should be good for ev- eign battlefields, Mr. Speaker, unless RECONCILIATION BILL eryone. People who are making $5 to $6 there is a vital U.S. interest present, or Mr. DUNCAN. Mr. Speaker, I ask an hour could and should be making $10 unless there is a real threat to our na- unanimous consent to address the or $12 an hour. tional security. Neither of these is House for 5 minutes. It sure isn’t compassionate to let our present in Bosnia. Mr. MILLER of California. Mr. national debt get even higher so that Finally, Mr. Speaker, let me say that Speaker, I object to recognizing the the gap between the rich and the poor when I got home last Thursday night, I gentleman. keeps growing. read in the USA Today that Allen The SPEAKER pro tempore. The The choice is simple. Are we going to Greenspan is planning through the Chair will alternate recognition for 5- side with overpaid and underworked Federal Reserve Board to spend billions minute special orders. bureaucrats, or are we going to side to prop up the Japanese financial sys- Mr. MILLER of California. Mr. with the average people who are foot- tem. We should not be doing that, Mr. Speaker, did you run out of people for ing the bill. Speaker. Our obligation should be to the 5-minute special order list? Second, I could live with a lower tax the American taxpayers, and not to the The SPEAKER pro tempore. The cut than $245 billion. But let’s put this big Japanese banks. They would not Chair entertains requests on the spot. in perspective. bail us out if we got in financial trou- Mr. MILLER of California. For unan- This is not an all-at-once cut. It is ble, and we should not be bailing out imous consent? spread over 7 years. their big banks with billions of our dol- The SPEAKER pro tempore. For This cut comes out to less than 2 per- lars at this time. unanimous consent. cent—less than 2 percent—of Federal f Mr. MILLER of California. I object, spending over this period. Mr. Speaker. We have people who have This follows a 15-year period during RURAL AMERICA AND THE been waiting who were on the list. which Federal spending has gone up al- IMPACT OF BUDGET CUTS The SPEAKER pro tempore. All most 300 percent. The SPEAKER pro tempore. Under a these special orders are 5 minutes. The first Reagan budget was $581 bil- previous order of the House, the gentle- Mr. MILLER of California. I thought lion. We’re spending almost triple that woman from North Carolina [Mrs. you had to be on the list. now. CLAYTON] is recognized for 5 minutes. October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10831 Mrs. CLAYTON. Mr. Speaker, how a which will most certainly diminish as But, education cuts of the majority, with the nation spends its resources says vol- the agricultural safety net disappears. stroke of a pen, takes that privilege away from umes about who is important, who is And, my final concern is that the many low income and rural children. not, which regions of our Nation are fa- Freedom to Farm Act is solely con- This blind march to a balanced budget, with- vored and which are ignored. cerned with the next 7 years—but what out considering the merits of programs, is tak- When we vote on budget reconcili- will farmers and farm communities do ing us down the wrong path. ation this week, this Nation will know after 2002? I wonder where it is taking our young peo- the winners and losers. The Freedom to Farm Act will re- ple? This budget will cause pain to many duce farm income by 5 percent in 1998. Where is the balance in this kind of budget? in America, but we will cause substan- Over the next 5 years, it has been esti- Mr. Speaker, I urge my colleagues, when tial harm to most in rural America. mated that net farm income will drop we consider budget reconciliation, let us not Rural North Carolina, including my by an average of $1.5 billion per year forget rural America. for a total of $7.5 billion—that’s $7.5 congressional district, like most of b 2000 rural America, is struggling to provide billion lost from farm income to pay a minimum quality of life for its citi- for an unfair tax cut. I do not consider The SPEAKER pro tempore. Under a zens. that to be fair or just—do you? previous order of the House, the gen- These communities, however, lack Congress needs to address agriculture tleman from New Jersey [Mr. MARTINI] high-paying jobs and often lack the in- in a fair and measured way—97 percent is recognized for 5 minutes. frastructure necessary for economic ex- of the population of the United States Mr. MARTINI. Mr. Speaker, the vote pansion. is fed by the 3 percent of farmers. tomorrow represents the very essence The lack of basic resources and op- The Freedom to Farm Act is neither of why I was sent to Congress. portunities, such as employment, hous- fair nor is it prudent. One year ago I made a commitment ing, education, and utility services, es- The name is deceptive—instead of to my constituents that I would bal- pecially water and sewer, is freedom to farm it should be called ance the budget and save the future of compounded by limited access to qual- freedom to fail. our country from irresponsible reckless ity health care and a shortage of EDUCATION spending and ever higher debt and na- health professionals, especially pri- In the area of education, more than tional bankruptcy. That is what I will vote to do tomor- mary and family physicians. 100,000 rural children will be denied row. As Congress goes through its cost basic and advanced skills, at a time A child born today will pay an aver- cutting, deficit reducing, budget bal- when many small towns and rural com- age of $187,000 in taxes over his or her ancing exercise, there is a message munities are having a difficult struggle lifetime just to pay off the interest on that needs to be emphasized among our with their budgets. the national debt, not to mention the colleagues: Farmers and rural commu- Rather than promoting education, principal. nities have been important to this Na- this bill is an obstruction to education and is disastrous to small and rural This is unconscionable; we have to tion’s past, and farmers and rural com- balance the budget and begin to relieve munities are essential to this Nation’s education systems. Thousands of disadvantaged children our children of this unfair burden. future, most notably, the small, family But the positive impact of this bill farmers. who need a little help in the beginning of their lives—at the onset of their edu- will be felt much sooner by current Today, I want to briefly discuss two generations as well. of the areas affected by the Republican cation—will not get that help. Head Start is cut by $137 million— One can always find excuses not to budget reconciliation legislation, and I balance the budget. will begin with agriculture programs. abandoning 180,000 children nationwide and almost 4,000 in North Carolina. A balanced budget will help lower in- AGRICULTURE Title I is cut by $1.1 billion—denying terest rates, making it easier for fami- Agriculture faces deeper, across-the- critical basic and advanced skills as- lies to finance the purchase of homes, board cuts in Federal programs, such sistance to 1.1 million students nation- cars, and college educations. as the cotton and dairy programs, the wide and 20,400 students in North Caro- It will create jobs, and maintain a food and nutrition programs, and the lina. rising standard of living for us and our rural development and housing pro- Drug-free schools is cut by 59 per- children. grams. cent—this program is currently used In short, the package contains the Agricultural cuts have been going on by 129 of the 129 school districts in most important goals of the 104th Con- for years, $50 billion since 1981, but North Carolina. gress: a balanced budget, tax relief, these are especially painful because of The program is designed to keep welfare reform, and Medicare solvency. the nature of the cuts and in light of crime, violence, and drugs away from In stark contrast to Congresses of all the other cuts. students and out of our schools. And, years past, today we present the Amer- The freedom to farm proposal offered the Republican majority wants to gut ican people with a responsible plan not by the House Agriculture Committee the program. of ever higher taxes and rapidly in- chairman—which will be part of the The Goals 2000 Program is com- creasing programs, but of serious reconciliation package—contains $13.4 pletely eliminated—381 schools in prioritizing and meaningful tax relief billion in additional cuts to farm pro- North Carolina will be denied this vital for working parents and their children. grams over the next 7 years. program. The reconciliation package sets the How much muscle and bone do we And, Vocational Education is cut by budget on a 7-year glidepath toward have to cut from the body of agri- 27 percent. eliminating the deficit by the year culture? Thousands of those school children, willing 2002. Why should we compensate for a $245 to work, who have found hope in a mountain Balancing the budget is simply good billion tax cut for the wealthy, by de- of hopelessness, will not be able to work. The economic policy. stroying a mainstay of rural life—the School-to-Work Program is cut by 22 percent. It will result in lower interest rates, American farmer? Americorps, the National Service Program, is a more vibrant private sector, and a re- My primary opposition to the Free- eliminated, denying an opportunity to 1,107 duction in the huge and growing part dom to Farm Act is that the link be- young people in North Carolina. of our budget comprised of interest tween prices and production will be And, the summer jobs program is eliminated payments on our debt. severed as a result of these severe cuts. altogether. Some 9,000 young people in North But this is also a moral imperative. A fixed payment that disregards mar- Carolina will be put out of work for 1996 and In effect, continuing to heap debt ket price cannot possibly provide the some 61,000 will be out of work in our State upon future generations for our short- help necessary when market prices are by the year 2002. And, sadly, Mr. Speaker, term benefits taxes our posterity with- lower, while providing unnecessary that includes the 22 young people who wrote out their consent, all because, until payments when prices are high. me that letter. now, we have lacked the will to make I am also apprehensive about the The privilege of an education belongs to all difficult decisions on budgetary mat- availability of production financing, in America. ters. H 10832 CONGRESSIONAL RECORD — HOUSE October 25, 1995 Balancing the budget is the overall They want a Congress committed to for dumping the social problems of the aim of this package, but the bill also solving problems, not avoiding them. Nation on the Governors while denying provides some much needed and signifi- They want a Congress that keeps its them the funds necessary to address cant tax relief for the working families promises, and gets the job done. the problems? of America. Mr. Speaker, I am very pleased to say The plan to block grant the Medicaid This bill provides families a $500 per that this is what we will give them to- Program will be disastrous for Florida. child tax credit, helping the middle morrow. Shifting from a program designed to class save and pay for college, braces, The SPEAKER pro tempore. Under a meet individual needs to a capped pro- clothes, or whatever. previous order of the House, the gentle- gram constrains a State’s ability to The point is that families, not the woman from Florida [Mrs. THURMAN] is meet health care demands. People will government, will be empowered to recognized for 5 minutes. either be kicked off of Medicaid, or make decisions for themselves. Mrs. THURMAN. Mr. Speaker, like State taxes will have to be raised. A American innovators will seize upon many of my colleagues, I have been block grant formula allows for little the capital gains tax reduction as an here during these special order sessions flexibility to address not only variable opportunity to invest in new businesses for several nights to inform the public economic conditions, but also events and create hundreds of thousands of about what is in the fine print of the like natural disasters that increase the new jobs, better jobs than any govern- Republican budget package. Medicaid need. ment bureaucrat can ever imagine cre- I think our efforts are starting to pay While I no not support block grant- ating. off. The people of America are becom- ing Medicaid, if that is the framework And the bill provides tax relief for ing aware of the enormity of the cuts within which we are operating, let us seniors, repealing the 1993 Clinton tax in this reconciliation package and at least make the formula a fair one. increase on Social Security. their effects on the children, the work- Today, I went before the Rules Com- Also included in the bill are the pro- ing poor, the disabled, and the elderly. mittee to offer an amendment to make the Medicaid funding formula equi- visions of the Medicare Preservation Sen. ARLEN SPECTER speaking on the Act that saves Medicare from bank- GOP budget: table. ruptcy. Under my formula, Governors who . . . much of the pain of the spending cuts use their Medicaid dollars efficiently Solvency is achieved in a fair and goes to the elderly, the young and the infirm reasonable manner, containing no in- while allowing tax cuts for corporate Amer- would receive a bigger increase in their crease in deductibles or copayments, ica . . . Medicaid grant. My formula encour- and no changes in the rate of premium This is a Republican. ages efficiency and the innovative use growth while offering more choices to Not included on this list is the group of Medicaid dollars. Medicare beneficiaries than ever be- that stands to gain the most from the We need to correct the fundamental fore. Republican package; The wealthiest unfairness underlying the Republican Long overdue welfare reform is also Americans. The Republicans are fi- Medicaid funding formula. Under their in there. nancing tax cuts for their rich by in- proposal, Florida is among the eight We put an end to the Great Society creasing taxes on the middle-class and States that will shoulder fully one-half notions that Washington knows best low-income working Americans. of the $182 billion in cuts. Over the 7 without abandoning our commitments Republicans claim they are helping years of the Republican plan, Florida to the Nation’s poorest and most vul- the poor by reforming welfare, how- will lose between $9 and $11 billion. The formula I offered was proposed to nerable. ever, it is dishonest to say that you be- me by the Joint Legislative Auditing As poverty rates hover around 1965 lieve in work over welfare and then cut Committee of the Florida Legislature. levels and illegitimacy rates sky- the earned income tax credit and med- rocket, this Congress has taken action It allows for adjustments in calcula- icaid. tions to reflect increases in a State’s and ended the cruel cycle of depend- Again, Jack Kemp. ency and encourages workfare, not wel- elderly population, and increases in the I hope you guys do not go too far on re- number of people in poverty. fare. moving the EITC because that is a tax in- Thirty years and $5 trillion of mis- Florida and other high growth States crease on low-income workers and the poor should not be penalized for increases in guided spending are enough: welfare re- which is unconscionable at this time . .. form is long overdue. our population. We also should not be In Florida, 1.3 million low-income penalized for being efficient in our use Let’s contrast this overall plan with workers and their families depend on that espoused by our President only a of funds. Under the current plan, if a the E.I.T.C. The working poor are bare- State has profited at the expense of the few short years ago. ly getting by as it is, and now the Re- On June 4, 1992, he promised a bal- system, in some cases bordering on publicans are pulling the rug out from outright fraud, it gets rewarded with anced budget. under them by cutting a program that A Democrat Congress never deliv- higher block grant numbers. To rem- was expanded by both Presidents ered. edy this error and to encourage proper He promised a tax cut for middle- Reagan and Bush. use of funds, my formula rewards The Republican welfare reform plan, class families. States that use Medicaid dollars effec- A Democrat Congress never deliv- which is part of the bill, includes addi- tively and efficiently. ered. tional impediments to work, such as But I will be denied the opportunity Worse than never delivering, they ac- underfunding child care support serv- to offer my amendment tomorrow. This tually implemented the biggest tax in- ices and underfunding the workfare re- is just another reason why I cannot crease in the history of our Nation. quirement. The Republican plan is support the Republican reconciliation And now, the President has even ad- weak on work and tough on kids. plan. mitted he raised our taxes too much. Republicans talk about freedom and I am glad America is listening. We He never offered a plan to end welfare choice for the States. But the cuts in will continue to try to get our voices as we know it, and he stayed on the this plan will do nothing but force Gov- heard so that Americans will know and sidelines as we saved Medicare from ernors to abandon any creative pro- understand the devastation that will going bankrupt. grams they have been able to initiate. result from the Republican plan. This Congress is about keeping prom- Instead, Governors will be spending The SPEAKER pro tempore. Under a ises, not breaking them. their time trying to stretch limited previous order of the House, the gentle- In the end, I will cast my vote for a dollars to provide basic services for the woman from California [Ms. PELOSI] is bill that fulfills my commitment to the poor and the elderly. recognized for 5 minutes. people who sent me here. The inconsistency in the Republican Ms. PELOSI. Mr. Speaker, I come to The last election was a clear state- agenda is confusing. Are they for work, the floor to rise in opposition to the ment by my constituents: They want a or are they for further injuring the reconciliation bill that is before the balanced budget and a smaller Govern- working poor? Are they for allowing House today and tomorrow. For those ment that works more efficiently for Governors to be creative and innova- who are not aware of this, the rec- them. tive in developing programs or are they onciliation bill is the budget bill, and October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10833 in it we are supposed to reconcile taxes colleagues that we all rethink support morrow we are getting ready to vote on and spending. for a combination of tax cuts and this bill. I am sure the reason all our I believe that a budget bill should be spending cuts that may lead to the per- colleagues are not here is they are a statement of our national values and ception of the Republican Party as the pouring over the pages of these bills to- how we spend our money is a state- party of wealth, power and privilege, night before they vote on them and I ment of those values, and how we tax and not the party of ordinary work- hope they would because if they had and who we tax is a statement of our ers.’’ the chance to look at this, they would sense of values in our country. I do not As you can see here, Jack Kemp also also see one section I am going to talk think that this reconciliation bill be- had his concerns about what is in this about tonight. fore the House meets any test that our bill. Jack Kemp, a leading light in the This morning, members of the Com- constituents would have as a state- Republican Party, said, ‘‘I hope you mittee on Ways and Means and the ment of values, a statement of national guys do not go too far on removing the Committee on Economic and Edu- values, and a statement of a sense of earned income tax credit, because that cational Opportunities that I am a fairness in our country. Indeed, in try- is a tax increase on low-income work- member of and the Committee on the ing to achieve a balanced budget finan- ers and the poor, which is unconscion- Budget held a press conference in a cially, we are indeed producing a lop- able at this time.’’ joint effort to alert American workers sided budget way out of balance in Of course, the earned income tax and retirees what effect the bill will terms of values and meeting the needs credit is cut back in this bill. That is a have on their pension plans. of our country. tax credit that is given to the working Several weeks ago, Republicans in Mr. Speaker, the other day I was at poor in our country. Some of us view it the Committee on Ways and Means an event and they asked me what the as a subsidy for an unfair low mini- proposed changes in the Internal Reve- three biggest challenges to America mum wage in our country, and it bene- nue Code allowing employers to take were. What are the three biggest is- fits America’s businesses as much as it assets from pension plans and use them sues? As a Member of Congress, they benefits the families. But no matter for any purpose. This dangerous pro- wanted to know what I would name as what, it does benefit the families. But posal would allow companies to take the three issues. we have to cut that back—a tax credit money from employee pension plans that they say are more than 125 per- b for the working poor—in order to give 2015 a tax break to the wealthiest people in cent funded. Those excess pension as- I said, that is easy. The three biggest our country. sets, the funds not needed to pay im- issues in our country are our children, Who was it who said that, to listen to mediate pension benefits, can be used our children, and our children. The sad this debate, one would think that the freely for purposes that may not cer- thing about this legislation before us, poor people had too much money and tainly be in the interest of those retir- the Republican majority reconciliation the rich people did not have enough? ees or potential retirees. bill, is the devastation that it wreaks But let us get on to the children. Allowing companies to strip so-called on children. The Republican budget repeals the surplus pension assets from the em- Our colleagues are fond of saying on Medicaid program as we know it which ployee pension plans would take us the other side of the aisle that this provides health security to 36 million back to the early 1980’s, when compa- puts us on a glide path to a balanced low-income Americans. Half of the nies took away $20 billion from over budget. It puts us on a glide path to a beneficiaries are children. Consumers 2,000 pension plans, covering nearly 2.5 crash. Union estimates that the Medicaid pro- million workers and retirees. Because unless we invest in our chil- visions in this bill will result in 12 mil- Prior to the 1980’s, the reversions of dren, we will never have a balanced lion Americans losing health insurance pension assets to employers were al- budget. Unless we invest in our chil- coverage in the cutbacks that are pro- most nonexistent. Pension assets were dren and our families, we will not be posed. The majority are uninsured chil- returned to employers only after the able to produce the productive people dren. plan had been terminated and after all that we need to keep our country com- Mr. Speaker, I want to just, in clos- benefits to plan participants were paid. petitive. Instead, we will continue, as ing, say that we all care about our chil- However, as pension assets grew be- this bill calls for, a continuation of the dren. We want the best for our chil- cause of the inflation in the late 1970’s Republican notion of trickle down. dren. But unless we understand that and the rising stock market of the But it is on the issue of children that the well-being of our own children is 1980’s, corporations began to take these I would like to speak this evening. Be- directly connected to the well-being of excess pension funds. cause, as I say, if it is a statement of poor children of America, our own chil- In fact, in 1983, the Reagan adminis- values of what we stand for as a coun- dren will not be well-served. That is tration issued guidelines making pen- try, it should be a statement of how we the reconciliation we must provide for sion reversions easier, in other words, care for our children. our country. to get at that pension increase. From, I do not think any of our listeners or I urge our colleagues to vote ‘‘no’’ on 1982 to 1990, over $20 billion was taken viewers would consider it a statement the Republican glidepath to a crash. from the over 2,000 retirement plans of their values to cut millions of chil- f covering those 2.5 million workers and dren out of Medicaid, guaranteed retirees. From 1982 to 1985, the size of health care, in order to give a tax PREVENT THE RAID ON AMERICAN the reversion grew rapidly: $404 million break to the wealthiest people in PENSIONS reverted in 1982 alone to $6.7 billion re- America. At the same time, I do not The SPEAKER pro tempore (Mr. verted in 1985. think our constituents consider it a WELDON of Florida). Under a previous As retirees were left without ade- statement of their values for us to give order of the House, the gentleman from quate retirement, Congress took strong a tax break that the overwhelming ma- Texas, Mr. GENE GREEN is recognized action to stem the tide of the pension jority of it benefits the top 6 percent for 5 minutes. reversions or the raiding of the pension earners in our country, the wealthiest Mr. GENE GREEN of Texas. Mr. funds. Beginning in 1986, Congress im- people in our country. Speaker, I am only in my second term posed a series of excise taxes. A 10-per- Do not take it from me, though. Lis- in Congress, but I remember last year cent excise tax on the amount of the ten to what a Republican has to say. one of the issues I heard a great deal reversion was in the Tax Reform Act of My colleague from Florida already ref- was how many Members of Congress 1986, a 15-percent excise tax in the erenced Senator SPECTER’s remarks when we passed one of those massive Technical and Miscellaneous Revenue when he said, ‘‘Much of the pain of the bills has read the bill. Act of 1988, and in the Omnibus Rec- spending cuts goes to the elderly, the I would like to throw that down onciliation Act of 1990 a 20-percent tax young and the infirm, while allowing today as a challenge for the folks who was on employers who established a tax cuts for corporate America.’’ happen to be watching tonight, Mr. successor plan with similar benefits or Senator SPECTER then also went on Speaker, in that they would look at they had to pay a 50-percent tax if no to say, ‘‘I suggest to my Republican both H.R. 2491 and H.R. 2517, and to- successor plan was established. So they H 10834 CONGRESSIONAL RECORD — HOUSE October 25, 1995 could not just come in and raid the increase the national savings rate. Let the Republicans are still trying to pass taxes, the pension plans from 1986 to us not permit companies to take pen- the buck on to other people so that 1990. sion assets from the American worker. they can give their friends So with these congressional meas- Let us ensure that pensions will be safe multibillion-dollar tax cuts, their rich ures, the number and size of the rever- and available for those who saved for friends. sions substantially fell. So today we their retirement. What the Republicans will not tell see increased pension plans, the assets Mr. Speaker, in closing I would hope Americans and what they will not tell of the pension plans that, by the way, that our majority tomorrow would re- our family farmers is that all of this Mr. Speaker, they are investing in our alize what it will do to the future of money that they are saving will go to country. We hope they are investing in the pension plans and, hopefully, the the rich, not to reducing the debt. I jobs and in our country. So it is for U.S. Senate will change that or, as Sec- will tell you something else, that is a savings, but that money is not sitting retary Reich said today, this is veto shame. somewhere and not earning money be- bait in this bill. Most farmers are good, patriotic cause we want those retirees to earn f Americans. As most patriots will do, from the benefits of our country. they have volunteered to eliminate The effect of the reversion on the REPUBLICANS TURN BACKS ON many vital farm programs so that they American worker in the Republican FAMILY FARMER can do their part in eliminating this proposal would encourage employers to The SPEAKER pro tempore. Under a Republican Reagan-Bush-caused defi- take billions of dollars out of these previous order of the House, the gen- cit. Well, fair is fair and enough is pension plans, leaving them possibly tleman from Alabama [Mr. HILLIARD] is enough. with insufficient funds to protect the recognized for 5 minutes. The Republicans always talk a good future of current retirees. Money pre- Mr. HILLIARD. Mr. Speaker, I come talk when it comes to supporting fami- viously set aside for workers’ retire- before you tonight to discuss the lies and family values. But when it ment would now be pocketed by these shameful way the Republican Members comes to delivering on these promises, same corporations and used for any of Congress are treating the American they always side with business and the purpose over that 125 percent. single family farmer with the farm and wealthy. I hope all farmers have The removal of these funds from pen- reconciliation bills. learned this lesson and remember it sion plans increases the risk of loss to The Republicans are treating our when election time comes rolling workers, retirees and their bene- farmers like a bunch of ruined chick- around again. ficiaries at a time when the need to ens, throwing them into the equivalent The Republicans have drafted a farm make sure we have a strong pension of the legislative compost heap, to bill. As a matter of fact, they have system is great, when we worry about slowly decompose, to rot, to wither, drafted two. But neither one passed be- if social security is going to be there. and then to simply waste away. cause the Republicans girdlocked on And we all talk about that Social Secu- I am a member of the House of Com- the committee. The Republicans sim- rity is not where people can survive on mittee on Agriculture, and I listen and ply cannot decide how much they want but it is just a beginning, and here we read what the Republican Members to take from the American farmers. are going to hurt private pension plans have proposed. I know that the Repub- Ironically, the Republicans call their by allowing employers to take money licans, as usual, have decided to choose farm bill the Freedom to Farm Act. from them. sides with the big, rich corporations, Unfortunately for our farmers under Pension plans are not the employers’ rather than with American farm fami- this Republican bill, no one will have money. Workers pay into those pension lies. the freedom to farm but large, big cor- contribution funds and oftentimes ac- America needs more than this. Amer- porations. cept lower wages, and I did that in the ica expects more than this. Repub- b 2030 1970’s. We actually accepted, when I licans always side with the big corpora- was in the printing business, a lower tions. Republicans always promote the The Republicans have turned their amount in our paycheck to make sure interests of the rich over the working backs on the family farmers, and it is we paid into the pension plan. So people. Republicans have no remorse a shame, a dirty, rotten, Republican today, Mr. Speaker, I am now a bene- when it comes to bleeding and starving shame. ficiary of the printers pension that I do our farm families until they have abso- America is a world power because of not know how much I will receive when lutely nothing left, no profit, no home, our family farmer and what they have I am 65. and no hope for a future. historically done for this country, and But under the current pension and America is a great Nation today, not I for one am grateful to them for their tax regulations, pension funds are in because we have a mighty military but sacrifices and all that they have done trust to be used only for the exclusive because we can feed our military and to make this country great. benefit of workers and retirees and our citizens, and, of course, the rest of I feel that we in Congress must pro- should not be considered as piggy the world. tect them by voting against this rec- banks. This irresponsible provision en- The majority of the Republicans in onciliation bill and the farm bill when courages efforts to pilfer workers’ pen- this country are gung ho when it comes it comes before this Congress. sions. This proposal is bad public pol- to funding the military. Look at the f icy. budgets that they propose. When it A pension plan with excess assets comes to investing in our farmers, they GETTING OUR FINANCIAL HOUSE today can quickly become underfunded shun them, turn their backs on them, IN ORDER if those assets are taken away. Because and in essence they are saying we Re- The SPEAKER pro tempore (Mr. most pension plans are tied to the publicans do not need family farmers. WELDON of Florida). Under a previous stock market, any downward turn will After all, they are expendable, because order of the House, the gentleman from have a negative effect on the plan. In we have big corporate farmers that can Connecticut [Mr. SHAYS] is recognized addition, a reduction in the interest farm huge farms and make big profits. for 5 minutes. rate of 1 percentage point, together Yes, America is great today because Mr. SHAYS. Mr. Speaker, I have been with an asset reduction of 10 percent, we can feed the world. And Americans sitting in my office, and I have been reduces the funding level from 125 per- can feed the world because in the past hearing some of the most partisan, out- cent to 96 percent. this Congress has had the wisdom to rageous comments I have heard in the The American public must let the invest in our farm families. history of this place, and I guess that majority Republicans in Congress Some people would have you believe is saying a lot. know that pension assets are held in that all the farmers have a bag of Fed- I have been in office 20 years now. I trust for the exclusive benefit of plan eral subsidies and moneys that they do was 30 years in the statehouse in Hart- participants and their beneficiaries. not need and to eliminate this coun- ford, CT, and now 7, almost 8 years Taking money away from pension try’s debt, we must eliminate all of the now, in Congress, and I remember my plans will reverse the progress made to farm programs. Well, the truth is that time in the statehouse looking at October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10835 Members of Congress and looking up to In our society we become a caretak- ter eye care for the same cost, might them but wondering how they could, ing society instead of a caring society. get dental care, might get a reduction how they would be allowed to, and why What ultimately has to happen is Re- or rebate in their premium. They they would spend more money than publicans and Democrats, one, have to might not have to pay that copayment they raised in taxes and why they realize we have to balance the budget. or a deductible with some private care would deficit spend. I knew I could not I would like it in 4 years. If it takes 7, plans. So they can do that. Nobody do that in the statehouse. I knew that so be it. We have to get our financial makes them. If they decide to go into in the statehouse that we had to spend house in order. private care under our Medicare-plus only what we raised in taxes. If we The second thing we have to do, plan and they do not like it, they can spent more, we would have a deficit, clearly, is decide how we do that. We come back. and we were not allowed to by law. have a disagreement with the White For 2 years every month they can go I just think that it is immoral for a House right now. The White House does in and come out. They do not have to country that gets, in a sense, I hear the not want to weigh in on a 7-year budg- wait a year. Only in the third year imagery of a farmer, I will use that et. They are going to have to do that. would they have to stay in the plan. same imagery, our forefathers gave us The one thing I am not giving in on is When I hear people say we are cut- a farm and it did not have much debt, to continue to say we are going to bal- ting, I think, yes, we are cutting some and this generation has mortgaged the ance the budget out years and years programs. We are not cutting Medi- farm to the hilt and is passing it on to out, but the President does not have to care. We are not cutting Medicaid. the next generation with so much debt take our 7-year budget. The Democrats They continue to go up. We are slowing you can hardly pay the bills, and that do not have to take our 7-year budget. the growth of those programs. We are is where we were at. We are here be- If they do not like that, they can come changing them. We are allowing people cause 20 years of deficit spending has in with a proposal as some of them to have other opportunities. put us in the mess we are in. have, but the bottom line is we have to I hope eventually the rich-and-poor I am not going to say that it is the get our financial house in order. dialog just falls by the wayside because Democrats’ fault, because it is not. We I hear the dialog about cutting it is simply a sham. We have the big- had a Congress on one side which was things, cutting school lunch programs. gest cut in our tax program is two- mostly Democrat. You had a Repub- No. They are going up 4.5 percent each thirds of our cut is $500 tax credit per lican Presidency for most of that time. year. Yes, they would have gone up 5.2 family. You mean to tell me if you The White House, Republicans did not percent. We think they should go up 4.5 have a kid under 18 and those who want to cut defense, or at least they percent. might be listening to this right now, did not even want to control the Cutting Medicare? Give me a break. you ask yourself if you are wealthy, if growth of defense. You had Democrats Medicare, we are going to spend $1.6 you have a child under 18, you are who did not want to control entitle- trillion in the next 7 years. The last 7 going to get a $500 tax credit; you are ments. You had Republicans who years we spent about $900 billion. It is going to get one; and if you are thought there was no defense program going to go up over $675 billion. We are wealthy, then we fit the description. that they did not want to spend money going to spend 75 percent more in the But if you happen to be like most on, and you had Democrats who real- next 7 years than we did in the last 7, Americans, 75 percent of whom make ized that half the budget are entitle- 75 percent more, excuse me, 73 percent less than $75,000, they are going to get ments, and they continued to go up and more. Only in this place where the that $500 tax credit. up. So Republicans did not give in on virus is fed, where you spend 73 percent The earned income tax credit is being defense, and Democrats did not give in more, do people say it is a cut. eliminated? No. We are saying it is not on entitlements. The end result is we In this year compared to the 7th going to increase above $28,000. If you have had one deficit after another. year, we are going to spend 54 percent are at $28,000 and you and your husband I vowed when I was elected that I more. The 7th year, in Medicare, 54 per- are working and you only make $28,000 would be part of a process to help get cent more than today. People say you or just one is working and you have 4 our financial house in order, and that have more beneficiaries. Even if you kids, you pay no Federal taxes. You get is what we are doing. The sad thing is take it on that, we are going to spend actually a rebate. You are paid by the we are doing it now without the help of $4,800 per beneficiary today, $4,800. It is Federal Government, no tax; you are my colleagues on the other side of the going to go up to $6,700 in the 7th year. paid. We are just saying we cannot in- aisle that know we have to get our fi- That is a 40-percent increase. Only in crease that to $35,000. We are also say- nancial house in order, and we are this place when you spend 40 percent ing that if it applies to a senior, you doing it without the help of the Presi- more per beneficiary do people call it a know, Social Security should count as dent. cut. an income. I am as proud as I could be to be part Are we going to force people out of So I listened to the rhetoric and of this effort to get our financial house Medicare into private care? No. They some of it has some truth to it, some of in order. We want to do that and bal- can stay where they are. They have no it, but some of it is just so off base. ance the budget. increase in copayment, no increase in I am just proud to be part of this Re- The second thing we want to do is deductions. The premium is going to publican majority that has the courage save our trust funds, particularly Medi- remain the same, 31.5 percent. Tax- and the determination to get our finan- care which needs to be protected and payers are going to continue to pay 68.5 cial house in order. preserved and strengthened. It is going percent unless you are the most afflu- f insolvent next year. It goes bankrupt ent. in 7 years, totally bankrupt. I have the most affluent in my com- REPEAL OF THE NURSING HOME The third thing we want to do is we munity. Yes, they are going to have to PROTECTION ACT want to change the social, corporate, pay more. If they are married, after The SPEAKER pro tempore. Under a and farming welfare state into an op- $150,000, they pay all of Medicare part previous order of the House, the gen- portunity society. I look at this, and I B. If they are single, after $100,000, they tleman from Florida [Mr. DEUTSCH] is say how can anyone justify 4 miles of pay all of Medicare part B. For the recognized for 5 minutes. public housing in Chicago, 17-story most affluent, people want to talk Mr. DEUTSCH. Mr. Speaker, I have buildings, that is the legacy of the wel- about how we want to help the been listening to the 5-minutes this fare state; the legacy of the welfare wealthy, we are saying the wealthy evening for over an hour now, about an state, our 13-year-olds having babies, should pay for more for Medicare to hour and a half, and I think one thing 14-year-olds selling drugs, 16-year-olds help save the trust fund. that anyone who has been watching or killing each other, 18-year-olds who Do we force people to get off private been listening can conclude is that nei- cannot even read their diplomas, 24- care? No. They can stay there. If they ther side of this aisle has a monopoly year-olds who have never had a job, 30- want to go into private care, they can on wisdom, and there really is both year-old grandparents. We have got to do that. Why would they want to do wisdom and ignorance on both sides of change that. that? Because they can maybe get bet- the aisle. H 10836 CONGRESSIONAL RECORD — HOUSE October 25, 1995 I think that when you look at this That does not exist today. People can- The reason we are all here tonight to bill that we are going to vote on to- not be evicted from nursing homes in talk and really have a dialog among morrow, there are things that I can the United States of America today. No ourselves, but with the American peo- support and that I do support in this one gets those calls in the United ple, is about what is going to occur to- bill, but there are some things that States of America today. morrow. It is truly a historic day. It truly will cause unneeded suffering for The tragedy that happened to thou- really brings to a close in really a Americans and really things that are sands, tens of thousands of families in grand finale of what we have said is our just out of place when you look at the this country, does not happen, and in motto, ‘‘Promises made, promises facts. fact, the facts are that there was just kept.’’ Yesterday evening I talked about one lots of empirical evidence that was That is what we have done. We all of them. I talked about the Medicare pointed out in hearings for this legisla- ran and campaigned with the Contract program, the fact that the $270 billion tion in the 1980’s that people died when With America because we believed it in cuts has nothing to do with what the evicted from nursing homes. That does was the right thing to do. When we got actuaries say. The 7-year actuarial life, not happen today, because of a piece of here, we started on day one and began in 12 of the 30 years it has had a shorter legislation that is going to be repealed implementing the Contract With actuarial life. tomorrow by that bill, and it should America, many of those issues we be- Tonight I want to focus in on some- not be. lieve that are important. Between now My colleagues on the other side of thing that has no place in that bill, and and the time that we conclude, some the aisle, and I propose this as an that is, it is not in a couple of thousand time in mid-November, the sooner the amendment to the Committee on page bill, it is really probably just a better, to get the people’s work done, Rules, my colleagues on the other side page and a half, and that is repealing there are four main issues we are going of the aisle say, well, the States can do the 1987 Nursing Home Protection Act. to accomplish, and those are embodied better; the States know better; we That is one of the many things this bill in this Reconciliation Act we are going want to return this issue to the States. does that really is unprecedented and to be working on tomorrow and pass- really, truly tragic. You know, my colleagues on the other side of the aisle really have se- ing. Prior to 1987, I think there are many The four main issues, and really they people who are listening and watching lective memory when they think about the States doing better. They pick and are Congress’ marching orders, first remember reading and seeing stories, and foremost, obviously, is to balance really horrible stories, stories about choose the issues they think the States can do better on. the budget within 7 years. The second nursing home patients being tied down is saving Medicare from bankruptcy, in nursing homes, being in their own Two hundred years of tort law in America, forget that, the Federal Gov- not for just this generation of seniors feces, in their own urine, being drugged but the next. Reforming the welfare so they would not move, nursing home ernment knows best in the areas of medical malpractice. We are going to system, to get people on self-depend- residents really dying in nursing home obliterate 200 years of States’ rights in ency. Last, but definitely not least, is facilities because of lack of fire exits, that area. My colleagues on the other allowing people to keep more of their nursing home facilities that had no 24- side of the aisle, there is one mandate, hard earned money. hour staff, I mean, horror stories on, if one State mandate in the Medicaid All of us here tonight engaged in this not a weekly basis, definitely on a bill, in this bill. There is one State colloquy can bring personal experi- monthly basis throughout the country. There is a reason we do not hear mandate, and that State mandate is ences from people we talked to at home that States cannot choose to spend those horrors today, because in 1987 about these important issues. The first money for abortions. this Congress passed a law providing issue we will talk about is the whole nursing home residents, the weakest of b 2045 issue of balancing the budget. the weak, the most vulnerable of the I know the gentleman from the sec- It is an amazing concept when you ond district in Washington State has most vulnerable in our society, protec- think about that. Mandating that probably been working on this issue tion against things like being tied issue, which they prioritize, but they longer than all of us in his elected ca- down, like being drugged, like making say we cannot mandate, that there reer. He has done a phenomenal job. I sure that there was 24-hour nursing fa- cannot be nursing home evictions. cility and a trained person in that fa- I urge my colleagues tomorrow to would like to ask the gentleman from cility, three meals a day, fire exits. really defeat this legislation for this the second district of Washington, to You know, if that is overregulation, and other reasons, and hopefully that tell us a little bit about what you have then I am for overregulation. people who are listening and watching heard at home, why balancing the But I do not think most Americans will call their Members to let them budget is important and why you are think that that is overregulation. I know this is a provision in this bill looking forward to casting an aye vote think most Americans think that that that they do not want to see enacted. tomorrow and what this will really mean to working people at home, not is sound public policy that really is in f the public interest. just using the overall numbers, but Let me just go on in terms of what CONGRESS’ MARCHING ORDERS what it will mean to families. this regulation prevents from happen- The SPEAKER pro tempore. Under Mr. METCALF. Mr. Speaker, this is ing. I served in the State legislature the Speaker’s announced policy of May in fact more than just how it will im- for 10 years, from 1982 to 1992. Prior to 12, 1995, the gentleman from Washing- pact the individuals, and it will. We that I served as a director of a Medi- ton [Mr. TATE] is recognized for 60 min- have to solve this problem. I look at it care advocacy group, 1982 and 1981. utes as the designee of the majority from my point of view basically as During that period, about once a week leader. more about my grandchildren. What I would get a call from either the Mr. TATE. Mr. Speaker, I am excited are we leaving for them? spouse or the child of someone who was tonight to talk about what is truly a Norma and I have really in a small being evicted from a nursing home, and historic day that is going to occur to- way realized the American dream. We I will tell you, I remember as if it were morrow, and I have four of my col- own our own home, we use our own today, those phone calls because I have leagues here this evening. I have the home for our own small business, and never heard since really just the trag- gentleman from Spokane, Mr. we were able to gain our home and we edy. You can imagine what it means, NETHERCUTT, the gentleman from up own it free and clear. I worry about someone’s spouse, their parent is being north Washington State, in the second that for my grandchildren. I think that evicted from a nursing home, and they district, Mr. METCALF, and what I call the debt, the huge debt, the payments called me and they asked me to do an honorary member of the Washing- of $1,300 per person per year, not tax- something. My response had to be ton delegation, my good friend the gen- payers, $1,300 per man, woman, chil- there was nothing I could do, because tleman from Pennsylvania, Mr. FOX, dren, all over America, I believe that is the law did not protect those people ei- and also Mr. WHITE here from Washing- destroying the American dream for our ther in Florida or in the United States. ton State as well. children and grandchildren. I think October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10837 their chance to own a home is 10 per- fect, and that is to balance this Federal they all have to balance their budgets, cent of the chance that I had to own a budget. and so do our families. But the Federal home. Mr. TATE. The gentleman is correct. Government, from many years of not I think that this American dream is It is for our children. We have heard balancing the budgets, now has a $5 a thing that I resent most about year about that at home. It will accelerate trillion debt. As said by the gentleman after year of overspending, needless, long-term growth, we know that, by from Washington [Mr. NETHERCUTT] wasteful overspending, by people who lowering interest rates. It will and the gentleman from Washington voted over and over and over for unbal- strengthen financial markets, when the [Mr. METCALF], we are now having to anced budgets and raising the debt markets know we are actually serious have our children pay $187,000 over limit. I believe that they are busily de- this year about balancing the budget. their lifetime just on the interest. That stroying the American dream for our It is going to raise productivity, when is going to end, or we are not going to children, and we intend to fix that. people can keep more of their own have the salvation that this Congress Mr. TATE. The point that I have money, they can spend more money on can bring for the economic future for heard at least when I have been home, their families and business. It will re- senior citizens, for working families, and the point that really drives it duce inflation, make products a little and for the children who are going to home more than anything, is the first more affordable, and strengthen the take over the positions of leadership point on why the Republicans are bal- dollar. across this United States. ancing the budget, and it is for our I know the gentleman from Penn- Mr. TATE. I appreciate the gentle- children. My daughter, Madeleine, and sylvania, though he is 3,000 miles away man’s comments. The gentleman has I use this number over and over but it from Washington State, I know he has been a real leader as well in the fresh- drives a point home, in her lifetime she heard some of these same kinds of man class. I appreciate that. will have to spend $187,150 in taxes just things from his constituents. I know the gentleman from the First for her share of the national debt. Mr. FOX of Pennsylvania. I thank District of Washington State has four Mr. METCALF. Just for her share of the gentleman. The gentleman has children, and is very interested in the paying the interest on the national been a leader in our freshman class and future of this country. Tell us what debt. this 104th Congress in helping us move you have heard at home and what are Mr. TATE. The gentleman is correct, ahead toward a balanced budget. the constituents of the First District of not for defense, not for Social Security, Whether one is a Republican or Demo- Washington saying and why is it im- but just her share of the interest. I crat, we have a historic opportunity portant to balance this budget and pass know the gentleman from Spokane was this week to actually balance the budg- this reconciliation act tomorrow? home this weekend and had a chance to et and do some things that I think my Mr. WHITE. I thank my friend. I also talk to constituents through the Fifth constituents and your constituents in congratulate the gentleman for being a District of Washington. Mr. Washington State want us to achieve leader. I also say that when you really NETHERCUTT, give us some of your in- for the first time since 1969. That will sit down and think about why we have sights of what you have heard and why be to lower housing costs. to balance the budget and why we have you believe this issue is so important If we balance the budget, according to make some decisions on our spend- back home to working people back in to a study by the National Association ing priorities, I think the way the gen- Spokane? of Realtors, the average 30-year mort- tleman from the second district has Mr. NETHERCUTT. I thank the gen- gage will drop by almost 3 percent. Our put it several times in the past is prob- tleman for yielding and for your lead- car expenses, your car loan rates for ably the most telling way to talk about ership in trying to meet the goals of your constituents and mine, will lower it. Because when he talks about it, he this Republican Congress, and that is by at least 2 percentage points. That is says do we need this program or do we to balance this Federal budget. That is on a $15,000 5-year car loan, at about need to spend this money so badly that the overriding concern that I think all 9.75-percent interest, that is an extra we should borrow money from our chil- of us have as we look at the fiscal re- $900 in the family budget. We will have dren to pay for it? sponsibility that we exercise here and lower college costs as a result of bal- the fiscal responsibility that the Fed- ancing the budget. Student loan rates Frankly, that is the way we have to eral Government needs to exercise. will drop at least two points. A college approach every single nickel of Federal I spoke with a constituent today who student who borrows $11,000 will pay spending. There is only one way to get communicated with me after watching $2,500 less for the car loan, student our spending under control and I think the debate on the reconciliation bill loan, and even more when it comes to we have all talked about this at some today. His name is Rich Kuling. He the mortgage. We will also, by lowering length, and that is to make sure that made a comment to me after watching interest rates and having a balanced every nickel of spending with nothing this debate, he quoted Aristotle, and he budget, will create 6.1 million in new sacrosanct is on the table, and that we said, ‘‘It is not ignorance, but false jobs. make fair cuts across the board, so all knowledge that is the greatest impedi- Mr. TATE. If the gentleman would of us are participating in this program ment to human progress.’’ allow me, we are basically paying a and setting the priorities which we We are seeing a lot of that today, as deficit tax. We are paying higher inter- should set for the Federal Government. we listen to the debate on this issue of est rates because the budget is not bal- I think this bill we are going to vote reconciliation and the rhetoric of the anced. Higher interest rates on a car, on tomorrow takes a very good step in critics of balancing the Federal budget. an average car loan, $180 a year; on a that direction. It is not perfect, and I The gentleman is right. I hear from student loan, an extra $216 a year; on think we have heard the people talk to my constituents on a daily basis, sev- an average mortgage, $2,162 a year, for us all day about how there is one par- eral hundred letters a day, just like all a grand total, most people have a car ticular thing in this bill that just Members do in the Washington delega- loan, many people out there still pay- about everybody can find not to like. tion. They see, ‘‘Keep going. Be true to ing their college loans, most of us have But the fact is it takes 218 people to your promises and your commitments a home loan, on average, $2,558 more get anything done in this Congress, and that got you elected, and balance this per year that we are paying in basi- we are not going to have a much better Federal budget, not only for our gen- cally a deficit tax, higher payments to product than the bill we have before us eration, mine, but for my parents’ gen- a particular financial institution, be- tomorrow, with all the millions and eration and for my children’s genera- cause interest rates are higher because billions of dollars that it deals with, to tion.’’ of the Government borrowing so much actually balance the budget. So it is just a simple fact that we money. From my perspective, I think the need to keep in mind as we look at the Mr. FOX of Pennsylvania. If the gen- Speaker of the House was right this debate and the issue-by-issue examina- tleman will yield further, the fact is morning when he said to all of us gath- tion of the reconciliation bill. Is it a our State governments have to balance ered here this morning, ‘‘If you are not perfect bill? Probably not. But cer- their budgets, county budgets, school prepared to vote for this bill, which tainly the overriding purpose is per- districts, townships, towns, boroughs, balances the budget for the first time H 10838 CONGRESSIONAL RECORD — HOUSE October 25, 1995 in 30 years, why in the world are you I know the gentleman from Penn- Mr. NETHERCUTT. Mr. Speaker, I here?’’ sylvania is dying to get a word in. thank the gentleman for yielding. This We gave our word to the American Mr. FOX of Pennsylvania. I just is a huge, huge Government. As appro- people last year when we ran for office wanted to add to this dialog in this priators looked at the breadth and that we were going to balance the sense. As we approach the budget this scope of the Federal Government, it budget, somehow, some way. We have year, to make it balance, there were was astounding how many programs worked for 10 months on a program to two overriding concerns I think all of and agencies within agencies within do that. We have had to make a lot of us had who were freshmen Members of agencies we fund. I think what the decisions, we have had to set a lot of this 104th Congress, and that is one, if American people have to realize is that priorities, and we have probably made the Government is involved with an ac- it is not the Government’s money that a few mistakes. tivity now, could it be better handled funds these programs, it is the tax- But the bottom line is we have a by the private sector? If it could not be payers’ money. It is their money, and product that will balance the budget, the private sector, is there another my money and everybody else who and, frankly, I am going to be very level of government that can give that writes a check on April 15th and sends proud to support it. service better, more efficiently, more it to Washington and trusts us in the Mr. TATE. Could the gentleman an- effectively, less expensively and more Congress to do what is right with their swer a question: When was the last directly to the people. That has been money. time the budget was balanced? accomplished to some extent in this So we hear discussion about, well, we Mr. WHITE. I believe it was in 1969 budget. do not want to give any kind of a tax was the last time the budget actually But second, and I think just as im- cut. What those critics are saying, and balanced, and I think that actually portant, if not more important, we the party on the other side is saying is, might have been a bit of a fluke. I do have looked to find ways to consoli- we want to keep all that tax money not think the budget that was passed date, downsize, privatize, to eliminate that the taxpayers send us because we that year actually anticipated it to be waste, fraud, and abuse that has been want to spend it, and the Government balanced. It happened to work out that in this budget for many yeas. By doing wants to spend it and not let the Amer- way because of revenue. Mr. TATE. So only in Congress was that, we are retaining the actual serv- ican people spend it. The majority leaders made state- the last time the budget was balanced ices that we want to get back to peo- ments, and all of us have made state- was in 1969 by happenstance or mis- ple. ments over the past months saying take. Only in Congress could that We do not want to have $30 billion of occur. fraud, waste, and abuse in Medicare. how can the Government decided how Mr. WHITE. By dumb luck. We have We want $30 billion of that savings to best decide to spend our money? Is that had a quote from Aristotle. I might go back for health care for our seniors. not something that we can decide as mention a quote from Socrates I like That is exactly what we have done. It citizens better than the Federal Gov- to use sometimes, which is that democ- has not gotten through in the media as ernment? racy only works as long as the elector- much as we wanted it to, the real facts, That is what we are trying to do is ate does not figure out that they can but, frankly, this group of 104th Mem- have a recognition, and we need to continue to vote themselves benefits bers, both sides of the aisle, I think, have a recognition that it is the tax- from the public treasury, because a are dedicated to their seniors, working payers’ money that we are dealing with majority of people, theoretically, once families, and our children, to make here. And if we feel we do not want to they figure it out, can decide they are sure that we provide the services, with- take more of their money, then I think going to vote to increase benefits to out overtaxing, overspending, and over- that is to the taxpayers’ best interest themselves. regulating. and we all have to understand that, es- pecially the critics of this balanced You had to kind of wonder last year b 2100 whether we had found the Achilles heel budget concept. of democracy, whether unfortunately Mr. TATE. The gentleman is exactly Mr. TATE. Mr. Speaker, the gen- the American electorate figured that right, Mr. Speaker. When I am home tleman is right on in his message on out and whether democracy was really talking to folks, I always hear that the that. The point is there are good people going to work. Had a majority figured government that is the closest to their working for the Federal Government, out a way to borrow money into the fu- home, their government, their city and I am not here to bash Federal ture? I think what were are seeing in councils, their county councils, their workers, but they do not know where this bill we are going to pass tomorrow State legislators, whoever, better know the cities are in our State. They do not is the answer is no. We have decided to their needs. They know where Tacoma know our children. We know our chil- make democracy work, exercise some is, they know where Everett is, they dren. We know what their needs are. fiscal responsibility, and come up with know where Spokane is, they know We know if they need a vacation or a a balanced budget. where the cities are in your district. new pair of Nikes or a little money put Mr. TATE. The gentleman is exactly They know best what is needed. away for health care or a little away right. I believe the public has known it The question I always ask is, well, for higher education. We know best. all along we are in a time where we can this program best be done in the That is what this is about, sending need to make tough decisions. We were private sector? If not, what level of programs out to the States to empower elected to do that. That is what I local government can it be done by? people, not to build bureaucracies here heard. The Federal Government should be the along the Potomac that are filled. A People at home when I am at home, last resort, but for the last 60 years it person cannot go anywhere without I do not care whether I am at the local has been the first resort. We have al- running into a Federal building. They grocery store, standing in line at the ways said, boy, if we just had more are full of people working here. We ATM machine, people come up to me money at the Federal level, if we had need to send that power out to the and say, ‘‘Randy, just keep going. My one new program, but it has not States and let them make the deci- biggest fear is you will not go all the worked. And we do not have to look sions. way, as opposed to we are going too further than welfare. I want to touch on one point. I know far.’’ Their biggest concern is they are The gentleman from Spokane, Mr. there is so much rhetoric from across all for the balanced budget, but are we NETHERCUTT, as a member of the Com- the aisle about these terrible cuts we really going to do it. Tomorrow we are mittee on Appropriations, they have are making. I want to point out that going to do it. They are concerned, are scoured through thousands of Federal over the last 7 years we have spent $9.5 we going to reform welfare? Tomorrow programs looking for areas to reduce, trillion, if we add up all the spending we are going to do it. They are con- putting money into those programs that has occurred. Over the next 7 cerned with tax relief. Tomorrow we that work, but taking away from those years, under our balanced budget plan, are going to do it. Are we going to save that do not or change them. we spend $12.1 trillion. If we did noth- Medicare? Tomorrow we are going to I would yield to the gentleman from ing, if we did things just how we have do it. Spokane. always done, the status quo, and we October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10839 would not have a balanced budget and committee, I have sure learned a heck paying for it out of cuts out of Medi- the kind of change we really want to of a lot about it in the last 2 or 3 care. see, we would spend $13.3 trillion. months, and I would say a couple If the gentleman would respond. I So we are slowing the growth by things about it. know the other gentlemen, Mr. FOX about $1 trillion. Spending will in- First, I hope people understand how and Mr. NETHERCUTT, will want to re- crease but it will be spending that is significant it is what we are trying to spond as well. directed at people and helping them accomplish today. A year ago, when I Mr. WHITE. I will be happy to say a out and empowering folks back home was running for office, there were lots couple of words about that. The fact is in our districts. of people who would tell me it is basi- this budget does not cut anything, as I can tell my colleagues as we are cally impossible as a political matter your charts have shown. It just allows dealing with this whole issue of chang- to balance the Federal budget. Why? things to increase a little more slowly ing the way Government works, there Because nobody will ever dare touch than they otherwise would have. is probably no more volatile issue than Medicare, nobody will ever dare touch We have saved, is the way I like to the whole issue of Medicare. I think we Medicaid, nobody will ever dare touch talk about it, we have saved about $900 are all aware that it needs to be saved, welfare. Three entitlement programs billion, almost $1 trillion over the 7- protected, preserved, and I know the that basically are the biggest problems year period. And we are going to use gentleman from the second district of we have in the Federal budget. that money for lots of different things. Washington, Mr. METCALF, has a very And everybody knows unless we get We are going to use it to bring down special interest in the program. I know those problems under control, we can- the deficit, so that we get the budget he is actually on Medicare, but tell us not balance the budget. And a year ago under control. We will use it to provide why and start up a dialog on why we people were saying it is politically im- some fairly small tax cuts to a number need to save and protect Medicare. possible to do so. of people, primarily people with chil- Mr. METCALF. Well, Mr. Speaker, as Well, tomorrow, and actually last dren, so that they can do a better job I say and said the other day, I am the week when we voted on Medicare, we of raising their own families. We will only one in the delegation who has a started to prove those people wrong. I use that money for lots of different particular interest because not only do think we did so in a way that when purposes. I qualify for Medicare, my wife quali- people look at the changes that we So it is a mistake to say that the fies for Medicare, my brother is on have made in the Medicare program, Medicare savings are going to go for Medicare and three older sisters are. So for example, they will be proud, proud tax cuts for the rich. In fact, the Medi- I am absolutely dedicated to seeing as I am, of the sort of solution that we care bill we passed last week says it is that this program is not damaged, not have come up with. illegal to use those savings to pay for a put in jeopardy, does not go bankrupt, What we have done is basically say if tax cut. We have to use them to pro- and it is there for those people count- an individual likes the current Medi- vide for additional benefits to Medicare ing on it. Because there are millions of care system the way it is, they get to beneficiaries. people across this Nation that are keep it. That is end of it. If they like Mr. TATE. So the attacks on the truly counting on it and it has to be what they have right now, they will other side, as well as those attack ads there as they need it. keep it. The same percentage basis of we have seen at home in some capac- Mr. TATE. Mr. Speaker, if the gen- premiums, same arrangement with ity, are just blatantly false. tleman would allow me, I hear the their doctors, same paybacks by the Mr. WHITE. I would like to say they rhetoric from across the aisle that Federal Government. The whole sys- are, unfortunately, misguided. somehow Medicare is being cut. Could tem stays the same. But if they would Mr. TATE. That might be a nicer we answer that question? rather have some of the other choices way to say the same thing. Mr. METCALF. Well, only in the that most modern health care plans Mr. WHITE. A subtler way of saying Congress could a 6-percent increase be make available to other people in the the same thing. considered a cut. It is the new math current health care system, they will Mr. TATE. I know the gentleman, that they learned and it does not work have some of those choices, too. And Mr. FOX, has had a number of townhall very well. we have five or six choices: Medical meetings back in his district. The gen- Mr. TATE. Exactly. I have a chart savings account, managed care, pro- tleman has a senior advisory commit- here to really illustrate. If an individ- vider service networks, and several tee that helps him on Medicare. If he ual is on Medicare today, they will re- other possibilities that people can would tell us what he has heard. ceive on average across this country choose from. Mr. FOX of Pennsylvania. Yes, our $4,816 a year. In the year 2002, they will So, really, by modernizing this pro- Preservation Task Force looked at the receive $6,734. Now, like we just said, gram we are able to save some money, problem last April. The President’s when we went to school and we re- provide health care more efficiently, trustees came out and said in 7 years ceived more the next year than we had but for people who are not comfortable we will be out of money in this Medi- the last year, that was an increase. making that transition or want to keep care Program. So what can we do about Talk about new math. Maybe it is what they have now, they are entitled it? We said, how did we get this prob- just verbal grenades that are being to do that. lem? Well, health care goes up 4 per- thrown from across the aisle trying to Mr. TATE. So, Mr. Speaker, what the cent a year, but Medicaid goes up 10 scare senior citizens, and that is too gentleman is stating very clearly is percent a year. What is the problem? bad, but the bottom line is Medicare that seniors will have more choices We found out there is $30 billion a year spending will continue to rise. next year under this plan than they in fraud, waste, and abuse. I know the gentleman who serves on currently have today. This legislation, for the first time, is the Committee on Commerce, Mr. Mr. WHITE. They will have the same going to create the Federal offense of WHITE, I know he has been real active choices everybody out in the economy health care fraud. If it is violated by a in this debate, really in the cat bird already has. provider, they will not only be out of seat as we have been working on it. Mr. TATE. Mr. Speaker, what I like the Medicare Program as a provider, Tell us a little about what the trustees about the plan is, if an individual does but they can go to jail for 10 years. have said, why this is important and not want to change, they can stay on This is the first time we have attacked why seniors will actually be better off the plan. If they do not fill out the that problem. And under the lockbox, under this plan than if we just buried form, they are automatically on your which Congressman WHITE just talked our heads like ostriches and ignored current plan. about, the savings we get from getting the problem. The other frustrating thing I have the fraud and abuse and waste elimi- Mr. WHITE. Well, Mr. Speaker, the seen, and I think we have all been at- nated has to go back to the Medicare gentleman is absolutely right. The tacked in some capacity back in our Program. Medicare bill came to our committee, districts, that these are somehow tax I think it is important to point out, and although I did not know a whole cuts for the rich; that somehow we are and, Congressman TATE, we appreciate lot about it until I got involved on the cutting taxes for the rich and we are your bringing this issue forward, but we want to separate the myth from the facts. The myth is that it will not be a H 10840 CONGRESSIONAL RECORD — HOUSE October 25, 1995 better program. The facts are it will be Mr. TATE. Mr. Speaker, I would now their money. They worked for it, they a much better than we have today. Be- yield to the gentleman from Spokane. pay for it, they should keep it. sides the fact we have fee-for-service Mr. NETHERCUTT. I was going to Mr. Speaker, I know that the gen- and other choices for medisave ac- say this is a 30-year-old system. This tleman from the First District of counts and managed care, it will not was begun about 30 years ago, and Con- Washington [Mr. WHITE] has some com- raise Medicare copayments or gressman WHITE made mention of it a ments on that. deductibles, it will not reduce services moment ago. This is a courageous step. Mr. WHITE. Mr. Speaker, I was going or benefits for the program, it will not Without being too self-serving here, to say that those comments reminded force anyone to join an HMO. They can this is a courageous step to tackle this me of a great political cartoon some stay in the fee-for-service that we have monster program and try to get our may remember from last year. There now. We will retain the current fee-for- arms around it and fix it, because it is was a poor, old farmer going out to the service plan. It will ensure the sol- broken. rural route on the road to open his vency of the program for the first time. When the private sector is only grow- mailbox and see what he has got in his And as the gentleman stated earlier, ing at about 4 percent a year, and have mail today. he is there with his wife it will increase from $4,800 a year to reduced actually a little over 1 percent and he is opening the rickety mailbox. $6,700, which is a 40-percent increase, last year, but yet the Federal system He is on a small farm and proud of him- and it will increase the amount of grows at 101⁄2 percent a year, it is not self, but he is obviously struggling. He money spent in the program $659 bil- working. And I think we in the Con- takes out of the mailbox an envelope lion over that spent in the prior 7 gress, this reformed Congress have that is marked ‘‘Clinton Tax Increase,’’ years. And with the lockbox and the stood up and said this can be a better and his comment is, ‘‘Oh, no, we’re savings we are going to get from fraud, system, and that is what we do have is rich.’’ abuse, and waste elimination, we will a better Medicare system. It will give That is about the way some people make sure that Medicare is strong for my mom and your parents and Jack are approaching this; everybody is rich this generation of seniors and the ones and his family a greater range of if they have got some money to be that follow. choices. What is wrong with that? That taxed. Mr. TATE. And, Mr. Speaker, that is is a good system, a good system Mr. TATE. The statement has always what it is all about. The gentleman has change. been, ‘‘There are two certainties in life, death and taxes, but death does not get hit it on the nose. Medicare is going b 2115 broke. The trustees said it is. The Clin- worse every single year.’’ That is the As the gentleman from Washington ton-appointed trustees. We are going to point. The taxes keep going up and [Mr. WHITE] says, senior citizens who save, protect, and preserve it. Seniors there is less and less income at the end want to stay on the existing system are going to get more money next year of the month. can do so. And that should give every- Mr. FOX of Pennsylvania. I just and the year after and the year after, body in this country of senior citizen wanted to add to this dialogue that you and every single year, and they will age a great satisfaction, that they can are having about the overall approach. have more choices and less waste, either keep what they have, or get Not only are we trying to make sure fraud, and abuse. something better. We think it is a bet- we balance the budget for all the rea- Mr. WHITE. If the gentleman would ter Medicare system. sons that you stated earlier, Congress- yield, there is one other great thing One other quick point. In 1993, Presi- man TATE, to help our families, to help about this program that we overlook dent Clinton made mention about his our jobs, to reduce mortgage costs and sometimes. We should focus on what is tax increases, that they were too reduce college costs, but in addition going to happen to beneficiaries, but much. They affected directly the senior the tax reform proposal that the ma- this program will have some real big citizen population that the critics of jority party have presented will not benefits for our medical care system as Medicare reform and preservation are only help seniors as far as preserving a whole. arguing so hard to protect. Medicare, but we are going to make Right now the Government, under Mr. Clinton raised, and the Democrat sure that we roll back that unfair 1993 the Medicare Program, writes the Congress increased the tax rate from 50 tax on Social Security. As well, over checks for 30 percent of all the health percent to 85 percent on Social Secu- the next 5 years, we are going to raise care in the United States. The Medic- rity benefits for individuals with in- the amount of money that seniors aid Program is another 20 percent. So comes in excess of $34,000 and couples under 70 can earn from $11,280 to over between those two programs, we, right in excess of $44,000. This reconciliation $30,000 in the next 5 years, without hav- now, are buying half of the medical bill repeals that tax increase. ing deduction from the Social Secu- care that Americans get in the United So, I do not agree with anybody who rity. States. says that we are not trying to protect This is going to keep seniors inde- We have been saying for the last 40 senior citizens in this tax bill, not only pendent to the extent to be able to do years that we think it is going to go up through Medicare reform and preserva- what they want to do with their lives. about 15 percent next year, and so that tion, but through the repeal of the While many of them are volunteers, is why we have to raise the budget Clinton and Democrat Congress tax in- some of them want to continue work- every year. It is about time for the creases. ing, and we should not have a disincen- Federal Government to exercise a little Mr. TATE. If my colleagues listen to tive with our Social Security system fiscal restraint. It becomes a self-ful- the administration, someone who not allowing them to make up to filling prophecy. If someone is selling makes $34,000 a year or $40,000 a year $30,000 a year. something to someone and they tell would be under the title of rich. I know Our proposals that have been adopted them that they think they will have to in my town hall meetings, the issue by the House, if adopted by the Senate pay 10 percent more for it next year, comes up about the tax cuts and I ask as well and signed into law by Presi- we can be sure they are going to have everyone in the room that makes under dent, are two more ways that we are to pay 10 percent more because they $200,000 a year, that has kids under 18, going to try to help seniors. are going to charge them 10 percent to raise their hand, and I tell them to Mr. TATE. The gentleman from more. That is what the Federal Gov- keep their hand up. I say, you are look- Pennsylvania is right. I know the gen- ernment has been doing. ing at the rich. These are the people tleman from Spokane is very inter- So one of the things we do under this that are rich. ested in providing more money for plan is to say we will not continue We are trying to give more money working families. We talked earlier those old ways. We are going to try to back to working people and senior citi- about the issue of a tax credit for those exercise some restraint, maybe save a zens. They are the people that helped who want to adopt. I yield to the gen- little money, and we are going to say it us get through World War II and were tleman. should rise at about 6.5 percent next the backbone of this country through Mr. NETHERCUTT. Mr. Speaker, in year. I think that is a real step in the some of the darkest times, the Depres- my former life as a lawyer in Spokane, right direction. sion. We should let them keep more of WA, 10 months ago, I did probably 100 October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10841 adoptions a year. It is the greatest ure out what we should do and do those I know that Mr. METCALF would like service that anybody can provide in things well. to make a few comments on this as our society for another human being, But the things that we should not do, well. that is to adopt a child and give that things for example that maybe the Mr. METCALF. My comments are re- child love and care and attention for Commerce Department was doing, or in lated more back to the children, and his or her lifetime. my view some of the education pro- that is something that I would just This bill, this reconciliation bill that grams, which I think are better done at like to comment briefly on, as far as is coming in before us tomorrow, which the State level, things that really can this irresponsible spending over dec- we will pass, provides a tax credit as an be better done by people in their fami- ades. That is what has racked up this incentive for people to ease the burden lies or by State and local governments, $5 trillion debt. But in actual fact, it is of adopting a child. Sometimes hard- let us not do those at the Federal level. worse than that. to-place children, children with health Let us not do those at the Federal There is $5 trillion national debt, problems and others are difficult to level, and concentrate on what we over $3 trillion of unfunded liability for place in a home with the ability to pro- should be doing. pensions and retired military Federal vide the resources necessary to raise Mr. Speaker, I think this budget is a employees, hundreds of billions that we that child. good first step in that direction. It does have borrowed from the Social Secu- And make no mistake about it, it not take us all the way there. We have rity funds. It is far more serious than does cost more money to raise children plenty of work to do, but I do think it just the deficit. We have to solve them than to not raise children. That is why does take us part of the way down the all and we do not have a lot of years. we are providing some tax relief to road. That is why our start now, and the families with children. Along with Mr. TATE. The message I heard at vote we will take tomorrow, is one of that, we provide assistance to people to home from people was that they elect- the major steps along the way. encourage adoption and encourage se- ed us because they did not want more I worry more. There was a previous curity for young people in this country of the same, but they did not also just speaker that said, ‘‘The most impor- for their future life in a loving family. want less of the same. They wanted tant three things, the three most im- That is admirable in this tax bill and things to be done differently than it portant responsibilities are our chil- this reconciliation package that we are has been done for the last 40 years, and dren, our children and our children.’’ putting together. This is a good thing definitely since 1969, when the budget What we have done, what we have al- for families. It is a good thing for chil- was last balanced. lowed as people to have happen is to dren. So do not let anyone tell us that Mr. Speaker, I would ask the gen- extend this huge debt, load this huge we are not sensitive about the children tleman from Spokane to talk to us a debt on the backs of our children. As I of this country. We are, and we will be little bit more about what the tax cuts mentioned before, we are destroying as we pass this bill tomorrow. really entail. The capital gains tax cut, the American dream for our children. Mr. TATE. The gentleman is correct. the family tax cut, what will that It is more than that, even. The con- That is why we are providing the tax mean to folks at home? tinued inability of Congress to balance relief for families, the $500 tax relief. I Mr. NETHERCUTT. It is going to the budget has become a national dis- know the gentleman from the First mean more money in their pockets and grace that threatens to permanently District is real interested and I know a better economy for this country, es- destroy public trust in our govern- his constituents have talked to him pecially for eastern Washington. ment. More than that, more than just about that issue, I am sure. Mr. TATE. So it is not just for the public trust, if we cannot stop it, it Mr. WHITE. They absolutely have, rich? will destroy the government itself. and I wanted to make a comment to Mr. NETHERCUTT. Certainly not. It Mr. Speaker, we cannot continue to my friend from Spokane. The gen- deals with agriculture too. Agriculture borrow more money. I just want to tleman mentioned that he was a lawyer is a very important part of my district harp on this a little bit more and sort and the fact is, I try not to emphasize in the eastern part of the State of of close with this. What we are doing is it too much, but I was a lawyer too Washington. It is going to help farmers selling our children into debt slavery. about 10 months ago. Unlike my friend, and storekeepers and small This is something we have got to con- I was a bankruptcy lawyer. businesspeople. It is going to help sin- sider. The $187,000 that a child born in As I told people when I was running gle moms and single dads raise chil- 1995 will pay in interest on the debt for Congress last year, frankly, that is dren, recognizing that that is the most would buy a pretty respectable house pretty darn good training for coming important thing we can do in this for $187,000. to Congress. Over my legal career, I country, is raise a good child to be a That is what has been taken from probably dealt with 100 or 200 compa- good citizen. them, probably, by the previous Con- nies that had financial problems and I We are encouraging that as we de- gresses that have racked this huge debt had to figure out how to solve their volve this, transfer this Federal au- that takes these terrible interest pay- problems, how to cut their budgets, thority to State authority and local ments. how to get them to live within their and county authority. That is all in the When it comes to interest, I guess I means and find out what programs best interest of local citizens; people in will close on this by saying the people were working and what programs were Spokane and Walla Walla and Colville of England are still paying interest on not working. and Colfax and every other city in my the money that they borrowed to fight If there is any institution in the district. Napoleon. They paid that money over world that is a financially troubled in- It affects the broad range of people in 13 times as much as they borrowed, but stitution, it is this Congress. I have this country; not only by a balanced they still owe it. That is the kind of frankly found that that has been pret- budget, but by the tax relief we are debt slavery we are promising for our ty good experience to come to this trying to provide to people and leave children, instead of the American body and find out: What programs do more money in their pockets so they dream, if we do not fix it. we need to have? We are not going to can spend it as they deem appropriate. Mr. Speaker, I am proud to be a shut down the whole Federal Govern- Mr. TATE. I hear quite often, ‘‘Tax Member of a Congress that plans to fix ment. There are some things that the cuts for the rich. Oh, it’s tax cuts for it, because we owe this to the future. Federal Government needs to do. But the rich.’’ We are really talking about Mr. TATE. The gentleman is exactly there are also some things that are working people. The capital gains tax right and I appreciate the gentleman lower on the priority list. cut, who does that help? Small busi- coming out. Mr. Speaker, I always say, and what ness owners. Someone who owns a fam- Mr. Speaker, there is one last issue we have done in the reconciliation bill ily farm, they sell their house. It af- that I want to talk about in closing tomorrow is to say: What should the fects all of us. The people we know and then we will wrap up for the Federal Government do? Let us make next door or people we work with or evening. It is the whole issue of welfare sure we do those things well. Let us not people at church. It is just everyday reform. It is an issue I have been in- do everything in a mediocre way. Fig- folks. volved in in trying to reform at the H 10842 CONGRESSIONAL RECORD — HOUSE October 25, 1995 State level. It is really, to me, not the States the ability to experiment give them more money, going right to about balancing the budget. We can with welfare reform and have more services. That is what the welfare re- talk about the $5 trillion we have spent flexibility from the Federal system. form bill is all about. The fact is there since the 1960’s on welfare programs. In those two States I mentioned, are able-bodied people who will be We spend somewhere around $300 bil- they have had people who have been on given the opportunity under this legis- lion a year, if we add up all the pro- welfare and also have had an incentive lation to have job training, job place- grams that are really related to wel- to work while continuing to receive ment, job counseling, and day care, if fare, whether it be health care, direct some welfare benefits. That is work. necessary. payments, or AFDC. They are now filling out tax returns So those are very important points. That is three times what it would and actually getting into the habit of It is a compassionate bill that gets take just to pay people to get above working, instead of just receiving wel- service to those who need it, but those the poverty level, if we could give di- fare money or welfare assistance and that do not deserve to be on welfare rect payments. What we have done in having a disincentive to work. and are not really qualifying should be the process by these programs, to me it b 2130 removed from those rolls. is worse than anything we could do to Mr. TATE. I thank the gentleman I think our plan is very clearly de- people. It takes away their self-esteem. from Pennsylvania [Mr. FOX]. signed to provide an incentive for peo- It takes away their dignity and de- I know the gentleman from Illinois ple to ease themselves off welfare. Two stroys families and promotes illegit- [Mr. WELLER] is here. I appreciate you years will be an ample time. taking the time to come out this imacy and irresponsibility, because While America, I believe all of us evening. once they get on the system, they are would agree, needs to take care of peo- punished. If they get a job, we cut Mr. WELLER. I welcome the oppor- ple who need our help, we do not need tunity to join with you. I see my col- them off. If they have more children, to take care of people who just want we give them more money. leagues here from Washington State our help. That is what this bill is in- and Pennsylvania. Of course, I come It has been said as long as I can re- tended to do, is to create incentives for from the heartland, the State of Illi- member, we tax more of what we want people to be off the system and to nois, the land of Lincoln. Let me tell less of; we subsidize what we want make our entire national system of you, I have heard so much frustration more of. We have subsidized a system free enterprise and capitalism work coming from the taxpayers that I rep- that really breeds dependence. better, and it will. Mr. Speaker, I know there are several Mr. TATE. The gentleman is right. I resent regarding our welfare system. Today, we have a welfare system in provisions in this particular bill. We all could not have said it better myself, have our interests: Time limits; work even if I had attempted to. The point is which, over the last 30 years, the tax- requirements, and so forth; sending it well taken. There is no better feeling. payers have invested $5 trillion. That is back to the States. I know our State in It is a human feeling, that you are T, as in trillion dollars. What have we the legislature this year, there was a doing something, that you are getting gotten as a result? Higher rates of ju- comprehensive bill that passed the up and going to work, getting up and venile crime, more children living in State House. It did not pass the Sen- contributing to society. We need to do poverty today than ever before and ate. We should turn it back to the everything we can to encourage them higher rates of teenage illegitimacy. States. to go out there and work. That is the result of our current wel- I know the gentleman from the First Doggone it, a 2- or 3-year time limit, fare state. District would like to comment on that there has got to be an end. Eventually It has failed. We have got to change as well. I know the gentleman is inter- you have got to say, if you are able- it. Like you, I am committed to chang- ested in welfare reform. bodied, maybe I should get out there ing our welfare system. I am proud to Mr. WHITE. Mr. Speaker, I am inter- and get a job, give a little something say that our welfare plan that passed ested in welfare reform and I agree back. That is what this welfare reform the House this year emphasizes family with my good friend’s comment that is all about. and responsibility and emphasizes this has really very little to do with I know the gentleman from Penn- work and goes after those deadbeat balancing the budget. Sure, we want to sylvania has been an active participant parents that are not meeting their ob- make this program as efficient as pos- in this particular issue. ligation to their own flesh and blood, sible. But the fact is we have spent $5 Mr. FOX of Pennsylvania. I think it their own children. I am proud to say trillion on this program since 1965 and is very clear. that we passed a good welfare reform. the problems we are trying to solve are First, I appreciate your bringing this But, at the same time, if we are a little bit worse than they were in dialog forward because, without having going to say, okay, folks, it is time to 1965. welfare reform, we are not going to at- get off welfare, it is time to go to work, If we assume there are 50 million peo- tack one of the biggest issues in the we have to make sure that there are ple in poverty in the United States, country; and Republicans and Demo- jobs there for them to go to work at. that is 20 percent of the population. crats alike, as well as the Congress and Under our program, our balanced That is probably far too much. The fact the President, know that this welfare budget, there are so many benefits for is, if we have spent $5 trillion on 50 system is not working. Everybody has people who want to work. In the last million, that is about a million per per- said so. few days, I have met with building son over this 20-year period. Frankly, if What are we going to do about it? tradesmen, members of a local labor we gave these people a million dollars, The President recommended in the union in my district, with the African- that would probably do more to get food program and WIC that we have a American leadership in my district, them out of poverty than anything else 3.1-percent increase. The other side of with the farmers, the small we could do. the aisle said 3.6. We adopted a 4.5-per- businesspeople and the students; and So, really, this is not about the budg- cent Republican majority position for they all say, jobs are important. If we et; it is a moral imperative. At some an increase in those food programs. are going to move people off welfare point, we can try things for a long pe- But, more importantly, we said we are and put them to work, we have got to riod of time and then we have to admit going to block grant those programs to make sure there are jobs there for that, by golly, it has not worked. And the States but with a 15-percent admin- them. if it has not worked, then we need to istrative cost we used to spend in ad- It was interesting, there has been try something else. ministering at the Federal level. We some what you would call independent That is what we are trying to do in said to the Governors, you can only statistics that really show why our this bill. spend 5 percent. But with the addi- economic plan is so important and why Mr. TATE. Exactly. The gentleman tional 10 percent we are giving you, it is so important to balance the budg- from Spokane? you must feed more children more et. These are not plans that come from Mr. NETHERCUTT. Even here in the meals. the Democrats or the Republicans or State of Virginia and I think in New Going back to the States, back to the information that comes from the Office Jersey there is an experiment of giving individual local levels, we are going to of Management and Budget appointed October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10843 by the President so it has got political we have no choice but to vote for the out the waste, without the fraud, with- leanings. You understand that. They future of the country and vote in favor out the abuse, without overregulating, say, if we balance the budget, we will of this reconciliation bill. without overspending. We can make a lower taxes, lower interest rates and I thank the gentleman for his leader- difference by working with both sides also have a stronger economy as a re- ship on this and certainly the gen- of the aisle, working with the Presi- sult. tleman from Washington [Mr. WHITE], dent and in the end I think we are McGraw Hill, a respected think tank, the gentleman from Pennsylvania [Mr. going to have a bill that starts with to- an independent organization, released a FOX], the gentleman from Washington morrow’s vote but will end sometime study that they did for the National [Mr. METCALF], and the gentleman before the holidays, which I think will Association of Realtors which con- from Illinois [Mr. WELLER] for all the bring about a bipartisan effort which cluded that a balanced budget would work we have done as freshmen. I know will be better for all of America. result in a 2.7 percent drop in mortgage there is a lot more work to do, but we I appreciate the fact that I know you interest rates. What that means for a will meet the task. will be at the table there making sure family in Illinois, in my home State, is Mr. TATE. A few closing remarks by that your vision and that which the that a family with a 30-year $50,000 the gentleman from Washington [Mr. 104th Congress has to make the coun- mortgage at just a little over 8 percent WHITE] as your reflect on tomorrow’s try stronger, fiscally more responsible interest would save $32,000 over the life vote. will in fact be the reality. of the loan. That is over $1,000 annu- Mr. WHITE. I cannot resist the op- Mr. TATE. I thank the gentleman for ally. That is an even bigger tax cut portunity to make a few closing re- his kind words. I thank the gentleman just by lowering interest rates. marks. from Pennsylvania [Mr. FOX], the gen- A college student, student loans, giv- No. 1, I would like to thank the gen- tleman from Illinois [Mr. WELLER], the ing young people the opportunity to go tleman for putting together this pro- gentleman from Washington [Mr. to school, a college student borrowing gram allowing us to have this time. I METCALF], the gentleman from Wash- $11,000 at 8 percent interest, a lower would like to tell you and the other ington [Mr. NETHERCUTT], and the gen- rate than they currently would get at Members that have spoken tonight how tleman from Washington [Mr. WHITE] their local bank or through the direct proud I am to be a part of this class. for taking the time to come out to- lending program, would save $2,100 over We are all freshmen, all kind of learn- night. The fact remains seniors next the life of the loan. ing our job, but frankly I think by and year will have more Medicare than Lower taxes, lower interest rates will large we make good decisions and I they had this year. Welfare recipients create a stronger economy and create think we are committed to doing what are going to get back to work. There jobs. needs to be done. are going to be more college loans next In fact, the Joint Economic Commit- Finally, I would like to say we are year than there were this year. And tee estimates that by lowering interest going to take an important vote to- school lunches are still going to be rates, brought about by a balanced morrow. I think we will vote to balance there. All this kind of Chicken Little, budget because the Federal Govern- the budget, but let us not forget, that the sky is going to fall, the threats of ment is no longer competing with our that is really only the beginning of our fiscal Armageddon if these things do small businesses, those who want to go job. Because every day for the next 7 not pass, we have been blamed for ev- to school or our local families by low- years after this bill tomorrow, we are erything but the war in Bosnia. The ering interest rates over 2 percent it going to have the opportunity to bust bottom line is we are interested in would create 6.1 million new jobs over the budget again. This is not an making sure our kids have a brighter the next 10 years just because interest amendment to the Constitution and future. It is about providing more jobs. rates are lower. every day Congress can undo what it It has been mentioned several times in That is the best kind of tax cut. did the day before. different ways, we want to lower inter- Lower interest rates, lower taxes, bet- So tomorrow is very important. It is est rates, not just because it feels good ter-paying jobs. That is why I stand in essential that we take this vote and I and it is a great accounting thing. It support of balancing the budget for the know that we will but let us not forget affects people’s real lives. It provides first time in 26 long years, and I am the long term. Because we are going to more jobs, more opportunities and that proud to say I will be casting a vote to- have to keep the faith, keep our fiscal is what it is all about, the things that morrow to balance the budget and live restraint, keep the discipline every day we are going to cover tomorrow. within our means just like every Amer- for 7 years if we are actually going to We are going to balance the budget ican family. get this job done. I am committed to for the first time in 7 years, we are Mr. TATE. I thank the gentleman. I that, I think a majority of the Mem- going to save Medicare not only for know the hour is late. The gentleman bers of the House are committed to it. seniors on it today but for our children from Washington [Mr. NETHERCUTT] I just look forward to getting through tomorrow. We are going to reform wel- would like to make some closing re- that process and actually getting to a fare, to give people dignity again, to marks as we finish up our evening col- balanced budget in the year 2002. get them off the system that really loquy. Mr. TATE. I thank the gentleman abuses them and to provide tax relief Mr. NETHERCUTT. I just want to from Washington [Mr. WHITE]. This bill not only for families but for economic say as new Members of Congress, all of will be binding by our vigilance and opportunities, allow people to spend us have cast some very serious votes in how hard we work on it. I thank you more of their money. That is what it is this 104th Congress. It is a historic for your courage and involvement in all about. It is about opportunity. The Congress. Tomorrow’s vote probably this as a leader in the freshman class. question really tomorrow is do we bor- will be bigger than any of the votes we A few last comments by the gen- row or do we balance? Opportunity or will have made thus far, the last of tleman from Pennsylvania [Mr. FOX] as fear? That is what it is all about. This which was on our Medicare vote. we close out this evening, before our Congress is going to balance. We are no This is an important vote. It means vote tomorrow. longer going to continue the ways of the future of the country for the next 7 Mr. FOX of Pennsylvania. I just want just borrowing ourselves into oblivion. years. It means we will balance the to say I appreciate, as the others do, I thank the gentlemen for taking the Federal budget in 7 years and this is that you have taken a central role here time. I look forward to casting this his- the starting point as we go each year in the 104th Congress in bringing forth toric vote tomorrow. and meet our financial obligations for I think the vision that you had in f the country. Washington State here to Washington, I think this is a proud moment for all DC. That is, to get our fiscal house in FRENCH NUCLEAR TESTINGS A of us as freshmen. It is a difficult mo- order, to be accountable to people back DANGER TO MORUROA ATOLL ment as we all have said. This is not a home, and to also make sure that the The SPEAKER pro tempore (Mr. perfect bill, but it has got so much services that the people truly need WELDON of Florida). Under the Speak- good in it and so little bad, I think as from their Federal Government, they er’s announced policy of May 12, 1995, you really balance it out. But I think will get. But they will get them with- the gentleman from American Samoa H 10844 CONGRESSIONAL RECORD — HOUSE October 25, 1995

[Mr. FALEOMAVAEGA] is recognized for All the factors which we know now Mururoa atoll is only about 3 feet 60 minutes as the designee of the mi- favor destabilization in volcanoes are above sea level, and below this whole nority leader. gathered together at Mururoa, Dr. Vin- atoll is this volcanic formation. As you Mr. FALEOMAVAEGA. Mr. Speaker, cent testified, pointing to the atoll’s can see, Mr. Speaker, these dots, these I rise again to share with my col- steep sides, fissuring in the atoll and red dots are 165 atomic explosions that leagues and the American people a very alterations of substructure by previous have taken place on that atoll for the serious problem with France’s resump- tests. last 20 years. tion of nuclear testing in the South Pa- Dr. Vincent further states the shock In addition to this, France has also cific, which started last month despite wave from a new explosion could be the exploded 12 nuclear bombs above sea near universal condemnation by the trigger that would cause detachment of level, which is basically in the atmos- Nations of the world. previously disturbed sections of rock. phere. I submit, Mr. Speaker, who is Mr. Speaker, the first Sunday of this He said such landslides could cause going to clean up this mess if this atoll month France detonated a 110-kiloton tsunamis, which means tidal waves, ever, ever should leak, come out of nuclear device more destructive than seismic waves from undersea earth- this, because of what has happened in- seven Hiroshima bombs that were quakes or landslides which could sub- side this atoll? dropped in Japan about 50 years ago. It merge the whole of certain islands of Now some people might say, well, let was the second in a series of nuclear Polynesia. us not be concerned about it, because it explosions to take place in France’s Mr. Speaker, Professor Vincent con- is thousands of miles away from the test facilities in French Polynesia. cluded it was high time to stop the nu- State of Hawaii as well as along the Mr. Speaker, over three decades, clear testing program France is con- Pacific Coast States. Mr. Speaker, I France has detonated in excess of 200 ducting now in the Pacific, but even an submit if this atoll every breaks or nuclear bombs, almost all of them tak- immediate halt to France’s current se- starts to leak and all the nuclear con- ing place in the South Pacific. Yet this ries of tests in the region would not re- tamination that is contained here after is still not enough to satisfy France’s move the risk. He said if we stop to- France conducting 165 nuclear explo- ambitions to become a nuclear power. morrow, if that could happen, we could sions inside this volcanic formation French President Chirac boldly certainly have to continue to monitor that supports this atoll, I submit, Mr. claims that their nuclear tests have no this atoll for decades and probably a Speaker, who is going to clean up this ecological consequences and that they lot longer than that. mess? have nothing to fear nor to hide. Presi- Mr. Speaker, France’s resumed nu- I submit also that France does not dent Chirac has even invited scientists clear tests on Mururoa and Fangataufa have the capability to clean up this from the international community to atolls, which are actually dormant vol- mess if it ever does come to this within come to their testing facilities to see canic formations below sea level, has the next 10, perhaps even 50 years that for themselves. When the countries of Europe re- also initiated an investigation by the this will transpire. Mr. Speaker, this is a sad occasion, cently took Chirac up on his offer for European Parliament and the New Zea- an ‘‘open door’’ inspection, however, it land Government into possible connec- given the fact that over 60 percent of is interesting to note the results of this tions with the recent eruptions of New the French people themselves do not so-called open door policy. Zealand’s Mt. Ruapehu, a volcano dor- want France or President Chirac to The European Union team of sci- mant for the past 50 years. conduct this nuclear testing night- entists sent to examine Moruroa Atoll Internationally Mr. Speaker, the mare, as we see it, in the Pacific. And has now returned to Brussels, stating movement against France’s nuclear yet the French Government persists that they were denied full access to testing in the South Pacific is growing that they do this in the name of its na- test sites and radioactivity monitoring stronger and stronger. Over 100 nations tional interest. facilities. Moreover, the French au- adopted in Vienna an international Mr. Speaker, I am very concerned in thorities failed to supply necessary Atomic Energy Agency resolution con- the fact that President Chirac does not health and safety data requested by the demning nuclear testing. The United take into account the fact that 28 mil- European Union scientists. Nations General Assembly in New York lion men, women, and children, live in Not surprisingly, the European Union is soon to pass a resolution opposing this Pacific region, let alone there are team has not been able to issue conclu- all nuclear testing, while in London some 200,000 French citizens who are of sive findings regarding France’s testing the British Commonwealth is pressur- Tahitian ancestry that live also in program, as they were prevented by the ing France about its insensitivity in these islands, and yet we hear nothing French government from conducting a conducting nuclear tests in the South but absolute stubbornness, and I would true study. Pacific. also submit, Mr. Speaker, perhaps you Mr. Speaker, I would hope all of our could even say arrogance on the part of b 2145 colleagues in the Congress would join the French Government, not the good- While the French Government claims us in sending an urgent message to ness of the French people, but the they have nothing to hide and welcome Paris to stop their nuclear nightmare French Government to continue doing international scrutiny of their nuclear in the Pacific. Mr. Speaker, I want to this despite the condemnation of over testing program, Mr. Speaker, Presi- share with my colleagues, this is what 160 countries throughout the world. dent Chirac’s actions reveal nothing a French nuclear bomb explosion looks Why are we doing this? more than sheer hypocrisy not only to like on this atoll, the Mururoa atoll in Is it not ironic, Mr. Speaker, that the good citizens of France, but to the French Polynesia. I have also made an while we condemn germ warfare, while world as well. illustration of exactly what the con- we outlaw chemical and biological war- Mr. Speaker, I would also note that cerns have been for the nations of the fare, we continue to allow not only in- Reuters News Agency last week re- Pacific for all of these years and for dustrial countries but the fact that we ported from Brussels that a French sci- many scientists. have got nuclear bombs all over the entist states that France’s South Pa- As you can see, Mr. Speaker, this is place that cause just as much, if not cific weapons test site is unstable. the Mururoa atoll from the vertical as more, harm and damage not only to There is a risk of landslides and tidal seen from an airplane. This is what the the environment but to human beings, waves which could submerge islands in atoll looks like, and by the way, this and yet we continue to allow this. French Polynesia. Dr. Pierre Vincent, illustration was gotten from docu- I stated earlier that the nuclear a volcanologist and professor at the ments of the French Government show- bomb that was dropped on Hiroshima University of Clermont-Ferrand, testi- ing areas that were completely con- 50 years ago, Mr. Speaker, killed, fied at a European Parliament hearing taminated in the aftermath of the maimed approximately 200,000 men, on France’s South Pacific nuclear test- French nuclear program and the test- women, and children. In addition to ing, and he said this is an unstable ing for the past 20 years. that, 90,000 men, women, and children atoll. He was referring to the Mururoa This is the profile of what the were also killed with the bomb that we atoll, Mr. Speaker. I would say this sit- Mururoa atoll, which is this green dropped on Nagasaki. In the aftermath uation constitutes a high risk. strip, which is right on sea level; of this, and I would make a personal October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10845 appeal to the American people, we have Some scientists have warned that the atoll ‘‘When I ask one doctor, he says, ‘It’s he- got to send a strong message to Presi- could break open under the force of contin- reditary.’ When I ask another, he says, ‘No, dent Chirac and the only way to do ued test blasts or a natural disaster, releas- it’s not hereditary,’ ’’ Masson said. this, perhaps not necessarily through ing radioactivity and poisoning an area Haoa said the doctors at the French gov- known for its coral reefs and crystal waters. ernment hospital did not list the cause of governmental channels, but the con- Gen. Raymond Germanos denied the news- deaths for his five children—and when he science of the American people and the paper report and accused the environmental told them he thought it was due to his work conscience of the people in Japan and group Greenpeace of twisting decade-old un- at the nuclear sites, they told him he was even in Germany to voluntarily not official data about the atoll. He said the crazy. purchase French products, French newspaper’s map misplaced key features of But he recalled one physician taking him wine, French goods, to send a strong the island and the test facility. aside and saying that if he wanted the real message to the French Government answers, he would have to get them at medi- cal facilities in a different country. that this policy of continuing to ex- [From the Honolulu Star-Bulletin, Oct. 9, 1995] plode nuclear bombs in the South Pa- RECORD-KEEPING CRITICIZED cific, not only is it insane but it is an SUSPICION CLOUDS FRENCH NUCLEAR TESTS While France has spent millions of dollars outright shame for the Government of (By Gary T. Kubota) on nuclear tests, its gathering of health sta- tistics in French Polynesia during the early France to continue to do this in the PAPEETE, TAHITI.—Three of his babies were stillborn. years of nuclear testing has been sorely lack- aftermath, at least at the expense of ing, critics say. the health and safety and the lives of An infant son lived for a year before dying of leukemia. The official cancer registry of French those people who live in that part of His 1-year-old daughter died from a painful Polynesia has existed only since 1985. As late the world. disease that blackened her skin. as 1988, only 60 percent of cancers were being The information referred to follows: Edwin Haoa, 57, believes his five children recorded in French Polynesia, critics say. Death certificates became compulsory [From the Honolulu Star-Bulletin, Oct. 11, died from illnesses related to a change in his after 1981 but the cause of death is not al- 1995] body that produced defective sperm, a result ways listed. of radioactive contamination while he FRENCH PAPER RUNS A PHOTO OF MURUROA ‘‘The statistics are very badly gathered worked at nuclear testing sites in French CORAL CRACKS and very badly used,’’ said Marie-Therese Polynesia. PARIS.—Raising new questions about the Danielsson, author of the book ‘‘Poisoned Haoa said he can’t prove he was contami- safety of French nuclear tests, a newspaper Reign,’’ published in 1986. nated, nor confirm his suspicions about his published photographs today that it says Until 1985, the main hospital in French children’s causes of death, because the show cracks in one of the South Pacific Polynesia was controlled by the military. French have refused to release his medical atolls where the underground explosions Patients who had major medical problems records for his period of work from 1963 took place. were flown to France. Ouest-France said the photographs con- through 1977. The physicians group Medecins Sans tradict government claims that the tests While the French government claims the Frontieres, has charged that the French gov- caused no damage to Mururoa Atoll in radioactive fallout was too little to harm ernment failed to fulfill its ethical respon- French Polynesia. workers or islanders, some experts say the sibility toward those potentially at risk Critics say the nuclear tests could cause lack of medical information tells them from atmospheric testing. the atoll to break apart, spewing radioactiv- France has no proof the nuclear testing is The group, in its review of information ity into the water and air in what many con- safe. this year, said no reliable health statistics sider to be one of the world’s last paradises. Critics say the failure to provide answers were available to see if people were adversely The government denied a similar report to workers such as Haoa undermines the gov- affected as a result of 41 atmospheric tests. last week in the respected daily Le Monde. It ernment’s credibility in French Polynesia, ‘‘If such data do exist, they are not avail- had no immediate comment on Ouest- where more than 80 percent of the 212,000 able in the public domain,’’ the group said. France’s claims. residents are Polynesian or part-Polynesian. The group in July recommended French Ouest-France said the photos were taken It has also contributed to growing worldwide Polynesia improve its registry of cancer pa- in 1987 and 1988 by a diver several dozen opposition to the current underground test- tients, publish all available facts on the yards under the Mururoa Lagoon. ing, which began with a first test Sept. 5 at health of French nuclear workers, and track The cracks are about 9 to 101⁄2 feet wide and Mururoa atoll, 750 miles southeast of Tahiti. the health of the general population. several miles long, the newspaper said. A second test was done beneath Fangataufa It also called for improving health care ac- Normally only military personnel and sci- atoll Oct. 1. The French plan up to eight cess for residents of Gambier and Tureia, is- entists working on the French nuclear pro- tests through next spring. lands close to Mururoa. gram have access to the isolated atoll, about More than 10,000 civilians and military per- Roger Ducousso, director of radiological 750 miles southeast of Tahiti. sonnel worked at Mururoa and Fangataufa After the Le Monde report, French Foreign protection for the French defense depart- atolls, the site of 41 nuclear atmospheric ment, said he doesn’t think medical tests for Minister Herve de Charette told the National tests between 1966 and 1974. But bound by a Assembly that ‘‘no crack of any sort has ever the people in French Polynesia are nec- code of silence they signed while applying essary. been discovered’’ on the atoll. for jobs, most have avoided publicity. Experts at the French Atomic Energy Ducousso said the radioactive fallout was Haoa and 53 other former workers who wit- so low in dosage that there is no possibility Commission said some fractures were cre- nessed the nuclear tests stepped forward re- ated by the first tests carried out directly of chromosome damage. cently, when France announced its resump- Ducousso said the high rate of thyroid can- under Mururoa’s reef. tion of nuclear tests in French Polynesia. But they said there had been no further cer among Polynesians in French Polynesia ‘‘Some of them have seen their friends die cracks since tests were moved to the middle is an ethnic characteristic and is common of unknown causes,’’ said Oscar Temaru, of the lagoon. among Polynesians in Hawaii, New Caledo- European Commission President Jacques mayor of the poor working-class district nia and New Zealand. He said during the Santer demanded Wednesday that France Faaa. years of testing at Mururoa and Fangataufa, supply more information about the nuclear CANCER RATES HIGHER no one died or got sick from radioactivity. tests ‘‘without delay.’’ A report by the group ‘‘Centre de Docu- CASE MAY BE HARD TO PROVE mentation & Recheche sur la Paix et les Haoa disagrees but doesn’t know if he’ll [From the Honolulu Advertiser, Oct. 5, 1995] Conflits,’’ which translates center of docu- ever be able to prove it. He knows informa- FRENCH DENY REPORT THAT N-TEST SITE mentation and research on peace and con- tion about his health was recorded while he FULL OF CRACKS flict, indicates leukemia and thyroid cancer was working at the nuclear test sites. He PARIS.—A report that a South Pacific is- rates were significantly higher in French said he took a physical every three weeks, land used for France’s nuclear tests is full of Polynesia than other Pacific island nations. including a blood test. cracks put the government back on the de- The group’s facts come from compiling Haoa, who claims he witnessed more than fensive yesterday over its underground test- cancer incidence rates from the South Pa- 30 atmospheric tests, recalled viewing one ing program. cific Commission. Among French Polynesian from about 45 miles away that produced a The Defense Ministry dismissed the report women the incidence of thyroid cancer was mushroom cloud rising more than 1,300 feet. as ‘‘trivial and whimsical,’’ and said it has 17.6 cases per 100,000 population in 1989–90, He and other workers would return to the the situation at Mururoa Atoll under ‘‘per- compared with 8.6 for Fijian women in 1990 test sites a few hours to a few days later, de- fect scientific and ecological control.’’ and 10.5 for Hawaii women from 1978–1982. pending on the wind direction. He wore a The Paris newspaper Le Monde reported Maire Masson, 38, a Tahitian woman who special suit to shovel sand over contami- Tuesday that a 1980 French army map shows had a thyroid operation at 19, wants to know nated areas. Later, he and other workers that years of nuclear pounding had cracked if her illness and similar health problems in built walls and bunkers over the sandy areas. the atoll, site of a 20-kiloton nuclear test her family are hereditary or a result of nu- At Fangataufa, employees who arrived by blast on Sept. 5. clear fallout. air went into an enclosure and entered a bus H 10846 CONGRESSIONAL RECORD — HOUSE October 25, 1995 to travel to parts of the atoll. Signs outside meters away from Mururoa Atoll. These However, despite this pronuclear zeal, his- warned workers not to walk across the la- gravitational weapons were the NA-22 (60 tory will no doubt remember that in 1992, goon. One day, a friend did. That night, his kilotons) and the AN-52 (20 kilotons) then in Mitterrand decreed without prior consulta- friend died, Haoa recalled. use in the French Air Force. There were re- tion with the administration, chiefs of staff placed by the ASMO missile, weighing 300 or AEC officials a unilateral suspension of [From the Honolulu Star-Bulletin, Oct. 9, kilotons. French tests, which General de Gaulle defied 1995] To the above total must be added 12 secu- the international community by deciding in FRANCE CLAIMS NO RADIATION INCREASE rity experiments on Mururoa between July 1960 to launch the first French tests in the FROM TEST 1966 and November 1989. The security shots Sahara, while the United States (and hence were intended to verify whether the weapon Great Britain, which tested on American ter- PARIS.—France said today that its recent test of a nuclear warhead with the explosive was safe, i.e., that it would not explode inop- ritory) and the ex-Soviet Union were observ- force of just below 110,000 tons of TNT had portunely when subjected to external pres- ing a joint moratorium. not raised radiation levels at its Fangataufa sures of shock, uncontrolled vibrations, or f atoll testing site in the South Pacific. fire. Security bolts are thought to be able to Measurements taken at the site in French stop the launching of the weapon. These MOTION TO ADJOURN Polynesia found the same low ‘‘background’’ bolts also have a more political purpose, as the head of the government is the one who in Mr. FALEOMAVAEGA. Mr. Speaker, level of radioactivity after the Oct. 1 test as I move that the House do now adjourn. before the blast, European Affairs Minister the last resort would be the one to start the Michel Barnier wrote to EU Environment nuclear conflagration—if need be—by raising The SPEAKER pro tempore (Mr. Commissioner Ritt Bjerregaard. the bolts by remote control. WELDON of Florida). The Chair at this The level of radioactivity on the atoll cor- Most of the tests, including the Sahara time before entertaining a motion to responds to weak natural background levels, ones, were moderate- or low-energy ones. So, adjourn, will declare a recess. just to stay with Polynesia, 63 tests (18 at- Barnier said in his letter to Bjerregaard, f which was sent on Friday. mospheric tests and 45 underground ones) de- veloped a force of between 5 to 20 kilotons A copy of the letter has been released by RECESS the French Foreign Ministry. (the energy emitted at Hiroshima was about Bjerregarrd has complained that France 18 kilotons). Likewise 56 tests (11 atmos- The SPEAKER pro tempore. Pursu- prevented European Commission experts pheric and 45 underground) were between 20 ant to clause 12, rule I, the House will from visiting Fangataufa and refused to turn and 200 kilotons. Finally 54 tests (10 atmos- stand in recess subject to the call of pheric and 44 underground) emitted energy over data on radioactivity in the water and the Chair. marine life around the Mururoa atoll, where between 150 and 1000 kilotons. Only three at- mospheric shots (the first in May of 1968 on Accordingly (at 9 o’clock and 54 min- the first French nuclear test in the current utes p.m.), the House stood in recess series took place on Sept. 5. Fangautafa, and the second in August of the Barnier, in his letter, dismissed her com- same year on Mururoa) developed very high subject to the call of the Chair. plaints, saying the commission experts were energy, higher than a megaton. f allowed to visit more sites than had initially The tests, according to AEC engineers been planned and were given all the data caused initial contamination. The first, AFTER RECESS they sought. named ‘‘Ganymede’’ was an atmospheric shot under a balloon on Mururoa in July The recess having expired, the House [From the Congressional Research Service, 1966. The second, called ‘‘Rigel’’ was an at- was called to order by the Speaker pro the Library of Congress, Washington, DC] mospheric (the bomb was put on a barge) in tempore (Mr. DREIER) at 1 o’clock a.m. September 1966 on Fangataufa. The third Source: Le Monde, August 2, 1995, n.p. f one, called ‘‘Parthenope’’ was an atmos- PARIS PUBLISHES FIRST LIST OF ITS NUCLEAR pheric shot under a ballon [sous ballon] in REPORT ON RESOLUTION PROVID- TESTS August 1973 on Mururoa. The areas had to be ING FOR FURTHER CONSIDER- Franc¸ois Mitterrand was the first French decontaminated, i.e., surface sediments freed ATION OF H.R. 2491, 7-YEAR BAL- President to authorize a greater number. from radioactivity. More than two hundred shots since 1960, The comparisons undertaken afterwards by ANCED BUDGET RECONCILIATION three caused initial contamination. French technicians with the news being ACT OF 1995 France has just published for the first time broadcast at the time by the New Zealand- Mr. SOLOMON, from the Committee a complete and detailed list of her nuclear ers—at the time France issued no statements on Rules, submitted a privileged report tests since 1960, the date of the first test in concerning the testing—show that the meth- (Rept. No. 104–292), on the resolution the Sahara. This list, which contains the od of detection using seismic sensors at a code name for each operation, the hour of distance from the explosion is not reliable. (H. Res. 245) providing for the further consideration of the bill (H.R. 2491) to the explosion, place and explosive power re- THREE TIMES MORE THAN DE GAULLE leased has been published in a general survey provide for reconciliation pursuant to If the error in assessing energy is greater (three volumes and a fourth in preparation) than 100 percent in 20 percent of cases, which section 105 of the concurrent resolution of nearly 670 pages published jointly by the means that the detection by New Zealand on the budget for fiscal year 1996, Administration of Military Applications stations of the shock caused by the under- which was referred to the House Cal- (DAM) for the Atomic Energy Commission ground test overestimated by a factor of two endar and ordered to be printed. (AEC) and the management of the Centers the actual power of the bomb tested in Poly- for Nuclear Experimentation (DIRCEN). It Mr. SOLOMON. Mr. Speaker, I ask nesia. This method of oversight is, at appears that in toto France has had 240 unanimous consent to proceed out of present, the only one available, if you ex- launches, of which 12 are classified. It was order for 5 minutes. clude direct espionage on test sites them- Francois Mitterrand who was the one of all The SPEAKER pro tempore (Mr. ¸ selves or in the laboratories which subse- the heads of state during the Fifth Republic quently use the results obtained. Its non-re- DREIER). The Chair wishes to inform to order the—by far—the greatest number of liability could prove to be disturbing in the the gentleman from New York [Mr. tests. long run during discussions on the Nuclear SOLOMON] that after midnight, it is not In the Sahara between February 1960 and Test Ban Treaty in Geneva, in dealing with in order to proceed for 5 minutes under February 1966, France initiated 17 launches countries likely to carry out clandestine in all (four atmospheric tests and 13 under- the special order arrangement, but the low-energy tests in areas difficult to reach or ground tests at the bottom of a mine in a gentleman is recognized for 1 minute prohibited from any one site control. mountain. In Polynesia, between July 1966 and the Chair would like to inform the A final observation may be made from this and July 1991, France undertook 175 tests (41 gentleman that he will be very gener- information, published for the first time in the atmosphere and 78 underground ones from an official French source. Between Feb- ous with the 1 minute. in shafts dug in the crown of coral atolls and ruary of 1960 and August of 1968 (there were Mr. SOLOMON. I thank the Speaker. 56 underground ones in shafts sunk into the no tests in 1969), General De Gaulle author- Mr. Speaker, the rule that we have just lagoon.) The Mururoa Atoll was used for the ized 30 shots: the 17 recorded in the Sahara filed is the enabling legislation to greatest number of shots (163). There were and 13 more in Polynesia. Between July 1981 also 12 tests carried out on Fangataufa, bring the so-called reconciliation bill and July 1991 (the moratorium was declared about 40 kilometers away. to the floor, which will guarantee that in April 1992), Francois Mitterrand ordered 86 this body is going to act fiscally re- TWELVE ‘‘SECURITY’’ SHOTS tests. During a period of time comparable sponsible for the next 7 years and bring Of all the tests three were of the same enough for the two men, give or take a few kind: It concerned dropping a life-size weap- months—Mitterrand undertook roughly about a balanced budget. on from a plane (a Mirage IV, a Mirage III– three times the number of tests than did the Mr. Speaker, the Chair knows, and I E, and a Jaguar) in July 1966, in August of founder of the Fifth Republic and theo- know, that the single most serious 1973, and in July, 1974 several dozen kilo- retician of dissuasion. problem facing this Nation today is the October 25, 1995 CONGRESSIONAL RECORD — HOUSE H 10847 deficits that are literally turning this Mr. DORNAN, today, for 5 minutes. from the Speaker’s table and referred Nation into a debtor nation. We are, in Mr. BROWNBACK, today, for 5 minutes. as follows: effect, no better off than a Third World Mr. BARR, today, for 5 minutes. 1555. A letter from the Chief Financial Offi- debtor nation today because of it. (The following Member (at his own cer, National Aeronautics and Space Admin- I came here in 1978, 2 years before request) to revise and extend his re- istration, transmitting the Administration’s you, Mr. Speaker, and that great Presi- marks and include extraneous mate- report on mixed waste, pursuant to 42 U.S.C. dent, Ronald Reagan who arrived here rial:) 6965; to the Committee on Commerce. in 1980, and we at that time started the Mr. DURBIN, today, for 5 minutes. 1556. A letter from the Secretary of En- ergy, transmitting a draft of proposed legis- Reagan Revolution to shrink the size (The following Member (at his own request) to revise and extend his re- lation entitled the ‘‘Federal Energy Regu- and the power of the Federal Govern- latory Commission Act of 1995’’; to the Com- ment and return that power to the marks and include extraneous mate- rial:) mittee on Commerce. States and to the countries, towns, vil- 1557. A letter from the Director, Defense Mr. SHAYS, today, for 5 minutes. lages, cities, and local school districts, Security Assistance Agency, transmitting a (The following Member (at his own and to the private sector. copy of Transmittal No. B–96 which relates Mr. Speaker, we could not quite ac- request) to revise and extend his re- to enhancements or upgrades from the level complish it, because we did not have marks and include extraneous mate- of sensitivity of technology or capability de- control of the House and the Senate. rial:) scribed in section 36(b)(1) AECA certifi- Mr. HILLIARD, today, for 5 minutes. cations 91–03 of June 11, 1991, and 94–017 of Ronald Reagan, being the leader that f February 28, 1994, pursuant to 22 U.S.C. he was, was forced to compromise and 2776(b)(5); to the Committee on International never succeeded in doing what we are EXTENSION OF REMARKS Relations. doing here today. By unanimous consent, permission to 1558. A letter from the Chairperson, Navy Today, Mr. Speaker, you and I and Exchange Service Command, transmitting the Republican leadership in both the revise and extend remarks was granted the Navy Exchange Service Command retire- House and the Senate, we now have the to: ment trust for plan year 1993, pursuant to 31 (The following Members (at the re- votes to pass this kind of legislation U.S.C. 9503(a)(1)(B); to the Committee on quest of Mr. MILLER of California) and which is going to restructure this Fed- Government Reform and Oversight. to include extraneous matter:) 1559. A letter from the Acting Assistant eral Government. It is going to shrink Mrs. COLLINS of Illinois. Secretary (Civil Works), Department of the its size and we are going to set that ex- Mr. SCHUMER in two instances. Army, transmitting a copy of the U.S. Army ample throughout this entire country Mr. MILLER of California. Corps of Engineers flood plain management where we are going to have less govern- Mr. SERRANO in eight instances. assessment of the Upper Mississippi and ment, less bureaucratic regulation, so Mr. COLEMAN. Lower Missouri Rivers and their tributaries that business and industry can strive Mrs. LOWEY. [FPMA]; to the Committee on Transpor- and be successful in creating jobs and Mr. LIPINSKI in two instances. tation and Infrastructure. making profits in this country. Mr. HAMILTON in two instances. 1560. A letter from the Secretary of Veter- ans Affairs, transmitting a draft of proposed Mr. MARKEY. So, Mr. Speaker, I appreciate the legislation to amend title 38, United States Mr. GEPHARDT. Chair’s indulgence in letting me speak Code, to expand the authority of the Sec- Mr. SANDERS. this morning. retary of Veterans Affairs to suspend a spe- Mr. VENTO. f cial pay agreement for physicians and den- Mr. LANTOS. tists who enter residency training programs; SPECIAL ORDERS GRANTED Mr. STOKES. to the Committee on Veterans’ Affairs. Mr. FARR. By unanimous consent, permission to (The following Members (at the re- f address the House, following the legis- quest of Mr. BEREUTER) and to include lative program and any special orders REPORTS OF COMMITTEES ON extraneous matter:) PUBLIC BILLS AND RESOLUTIONS heretofore entered, was granted to: Mr. BONO. (The following Members (at the re- Mr. SHUSTER. Under clause 2 of rule XIII, reports of quest of Mr. MILLER of California) to Mr. BASS. committees were delivered to the Clerk revise and extend their remarks and in- Mr. CAMP in three instances. for printing and reference to the proper clude extraneous material:) Mr. GOODLING. calendar, as follows: Mr. SKAGGS, today, for 5 minutes. Mr. RAMSTAD. Mr. LIGHTFOOT: Committee of Con- Mrs. CLAYTON, today, for 5 minutes. Mr. TAYLOR of North Carolina. ference. Conference report on H.R. 2020. A Mr. OWENS, today, for 5 minutes. Mr. MARTINI. bill making appropriations for the Treasury Mr. WISE, today, for 5 minutes. (The following Members (at the re- Department, the U.S. Postal Service, the Ex- Mr. GENE GREEN, today, for 5 min- quest of Mr. FALEOMAVAEGA) and to in- ecutive Office of the President, and certain utes. clude extraneous matter:) independent agencies, for the fiscal year end- Mrs. THURMAN, today, for 5 minutes. Mr. TAUZIN. ing September 30, 1996, and for other pur- Ms. JACKSON-LEE, today, for 5 min- Ms. FURSE. poses (Rept. 104–291). Ordered to be printed. utes. Mr. OWENS. Mr. SOLOMON: Committee on Rules. Mr. DOGGETT, today, for 5 minutes. Mrs. EDDIE BERNICE JOHNSON of House Resolution 245. Resolution providing Mr. SANDERS, today, for 5 minutes. Texas. for consideration of the concurrent resolu- Ms. DELAURO, today, for 5 minutes. Mr. BARCIA. tion (H. Con. Res. 109) expressing the sense of the Congress regarding the need for reform Mr. STUPAK, today, for 5 minutes. Mr. FARR of California. of the Social Security earnings limit, and Mr. PALLONE, today, for 5 minutes. Mr. ORTON. providing for further consideration of the Mr. ROEMER, today, for 5 minutes. Mr. STOKES. Mr. MILLER of Califronia, today, for 5 bill (H.R. 2491) to provide for reconciliation minutes. f pursuant to section 105 of the concurrent res- olution on the budget for fiscal year 1996 Mr. DEUTSCH, today, for 5 minutes. ADJOURNMENT (The following Members (at the re- (Rept. 104–292). Referred to the House Cal- Mr. SOLOMON. Mr. Speaker, I move endar. quest of Mr. BEREUTER) to revise and that the House do now adjourn. extend their remarks and include ex- f The motion was agreed to; accord- traneous material:) ingly (at 1 o’clock and 3 minutes a.m.), PUBLIC BILLS AND RESOLUTIONS Ms. ROS-LEHTINEN, today, for 5 min- under its previous order, the House ad- utes. Under clause 5 of rule X and clause 4 journed until today, October 26, 1995, at Mr. BEREUTER, today, for 5 minutes. of rule XXII, public bills and resolu- Mr. HORN, today, for 5 minutes. 9 a.m. tions were introduced and severally re- Mr. KIM, today, for 5 minutes. f ferred as follows: Mr. DUNCAN, today, for 5 minutes. By Mr. RADANOVICH: Mr. MARTINI, today, for 5 minutes. EXECUTIVE COMMUNICATIONS, ETC. H.R. 2528. A bill to require the Secretary of Mr. BURTON of Indiana, October 31 for the Interior to renew to the heirs of permit- 5 minutes and November 1 for 5 min- Under clause 2 of the rule XXIV, ex- tees permits for historic cabins located in utes. ecutive communications were taken the Mineral King Addition of the Sequoia H 10848 CONGRESSIONAL RECORD — HOUSE October 25, 1995 National Park, and for other purposes; to the H.R. 2534. A bill to amend the Internal Rev- ADDITIONAL SPONSORS Committee on Resources. enue Code of 1986 with respect to treatment By Mr. MARKEY (for himself, Mr. of corporations, and for other purposes; to Under clause 4 of rule XXII, sponsors FALEOMAVAEGA, and Mr. STARK): the Committee on Ways and Means, and in were added to public bills and resolu- H.R. 2529. A bill to increase by 800 percent addition to the Committees on Agriculture, tions as follows: the duty on imports of beaujolais wine that National Security, Science, Resources, Com- H.R. 528: Mr. KLINK, Mr. SCOTT, and Mr. is the product of France; to the Committee merce, Transportation and Infrastructure, CHAMBLISS. on Ways and Means, and in addition to the Banking and Financial Services, and Inter- H.R. 663: Mr. FRANKS of New Jersey. Committee on International Relations, for a national Relations, for a period to be subse- H.R. 784: Mr. BACHUS, Mr. BONILLA, Mr. period to be subsequently determined by the quently determined by the Speaker, in each CRANE, Mr. TALENT, Mr. ZIMMER, and Mr. Speaker, in each case for consideration of case for consideration of such provisions as HEFLEY. such provisions as fall within the jurisdic- fall within the jurisdiction of the committee H.R. 835: Ms. WOOLSEY. tion of the committee concerned. concerned. H.R. 862: Mrs. CHENOWETH. By Mr. ORTON (for himself, Mr. STEN- By Mr. SCARBOROUGH: H.R. 922: Mr. FRANK OF MASSACHUSETTS, HOLM, Mr. PETERSON of Minnesota, H.R. 2535. A bill to provide for withdrawal Mr. KANJORSKI, and Ms. KAPTUR. Mr. CONDIT, Mr. PAYNE of Virginia, of the United States from the United Na- Mr. BROWDER, Mrs. LINCOLN, Mr. tions; to the Committee on International Re- H.R. 1033: Mr. DURBIN and Mr. PORTER. BREWSTER, Mr. TANNER, Mr. lations. H.R. 1229: Ms. WOOLSEY. BAESLER, Mr. MINGE, Mr. HALL of By Mrs. SMITH of Washington (for her- H.R. 1274: Mr. KLINK. Texas, Mr. HAYES, Mr. PETE GEREN of self and Mrs. CHENOWETH): H.R. 1353: Mr. HUTCHINSON. Texas, Mr. CRAMER, Mr. ROSE, Mr. H.R. 2536. A bill to terminate certain enti- H.R. 1483: Mr. GOODLATTE. SISISKY, Mr. SABO, Mr. POSHARD, and tlements of former Speakers of the House of H.R. 1496: Mr. HINCHEY. Mr. ROEMER): Representatives; to the Committee on House H.R. 1514: Mr. WELLER, Mr. BOEHNER, Mr. H.R. 2530. A bill to provide for deficit re- Oversight. CLEMENT, Mr. OLVER, Mr. DEAL of Georgia, duction and achieve a balanced budget by By Mr. HASTERT (for himself, Mr. AR- Mr. EVANS, Mr. COBLE, Mr. DURBIN, Mr. fiscal year 2002; to the Committee on the CHER, Mr. BUNNING of Kentucky, Mr. PACKARD, Mr. PETE GEREN of Texas, Ms. Budget, and in addition to the Committees ARMEY, Mr. FOX, Mr. CHABOT, Mr. WOOLSEY, and Mr. LAUGHLIN. on Agriculture, Banking and Financial Serv- FLANAGAN, Mrs. FOWLER, Mr. GOSS, H.R. 1540: Mr. BACHUS. ices, Commerce, Economic and Educational Mr. GOODLATTE, Mr. STEARNS, Mr. H.R. 1619: Ms. ROYBAL-ALLARD and Mr. Opportunities, Government Reform and FOLEY, Mr. HEINEMAN, and Mr. BARR): SOLOMON. Oversight, House Oversight, the Judiciary, H. Con. Res. 109. Concurrent resolution ex- H.R. 1787: Mr. CHRYSLER, Mr. BUNNING of National Security, Resources, Rules, Trans- pressing the sense of the Congress regarding Kentucky, Mr. UPTON, Mr. CUNNINGHAM, and portation and Infrastructure, Veterans’ Af- the need for raising the Social Security earn- Mr. BONO. fairs, and Ways and Means, for a period to be ings limit; to the Committee on Ways and H.R. 1821: Mrs. THURMAN. subsequently determined by the Speaker, in Means. H.R. 1883: Mr. SPENCE. each case for consideration of such provi- By Mr. HINCHEY (for himself, Mr. H.R. 1946: Mr. MCHUGH, Mr. SOUDER, Mr. sions as fall within the jurisdiction of the BONIOR, Mr. STARK, Mr. GONZALEZ, committee concerned. NEY, Mr. MCCRERY, Mrs. CUBIN, Mr. Mr. SCHUMER, Mr. EVANS, Mr. BEIL- MCINTOSH, Mr. KASICH, and Mr. CUNNINGHAM. By Mr. HUTCHINSON (for himself, Mr. ENSON APTUR ILNER , Ms. K , Mr. F , Mr. H.R. 1950: Mr. WARD. GOODLING, Mr. ARCHER, Mr. TALENT, SANDERS, Mr. WYNN, Mr. FATTAH, Mr. H.R. 1951: Mr. KILDEE. Mr. FAWELL, Mr. CANADY, Mr. PETRI, FROST, Mr. OBEY, Mr. RAHALL, Mr. H.R. 1970: Mr. UNDERWOOD, Mr. ENGEL, Mr. Mr. GRAHAM, Mr. GREENWOOD, Mr. CLAY, Mrs. MINK of Hawaii, Mr. GENE GREEN of Texas, Ms. BROWN of Florida, FUNDERBURK, Mr. HOEKSTRA, Mr. ENGEL, Ms. WOOLSEY, Mr. VENTO, Mr. Ms. VELAZQUEZ, and Ms. WOOLSEY. CUNNINGHAM, Mr. GUNDERSON, Mr. KENNEDY of Massachusetts, Ms. H.R. 2011: Mr. ANDREWS, Miss COLLINS of BARRETT of Nebraska, Mr. MCKINNEY, Mr. MEEHAN, Miss COL- Michigan, Mr. MCDADE, Mrs. MEYERS of Kan- KNOLLENBERG, Mr. MCINTOSH, Mr. LINS of Michigan, Mr. BALDACCI, Mr. sas, Mr. FOX, Mr. FILNER, Ms. PELOSI, and MCKEON, Mr. SOUDER, Mr. NORWOOD, SERRANO, Ms. PELOSI, Mr. FRANK of Mr. BRYANT of Texas. Mrs. MEYERS of Kansas, Mr. EWING, Massachusetts, Ms. DELAURO, Mr. H.R. 2098: Mr. UPTON and Mr. DICKEY. Mr. INGLIS of South Carolina, Mr. SPRATT, Ms. SLAUGHTER, Ms. SMITH of Texas, Mr. EDWARDS, Mr. VELAZQUEZ, Mr. OWENS, Mr. CONYERS, H.R. 2180: Mr. STUMP, Mr. BLILEY, Mr. TAY- CHRISTENSEN, Mr. QUILLEN, Mr. Ms. NORTON, Mr. MILLER of Califor- LOR of North Carolina, Mr. HANCOCK, Mr. CRANE, and Mr. LIPINSKI): nia, Mr. HASTINGS of Florida, Mr. BARTLETT of Maryland, Mr. MILLER of Flor- H.R. 2531. A bill to amend the Fair Labor WATT of North Carolina, Mr. ida, Mr. COOLEY, Mr. EMERSON, Mr. CRANE, Standards Act of 1938 to clarify the exemp- DEFAZIO, Mr. OLVER, Mrs. LOWEY, Mr. HUTCHINSON, and Mr. HOSTETTLER. tion for houseparents from the minimum Mr. FARR, Mr. BECERRA, Mr. PAYNE of H.R. 2200: Mr. LUCAS, Mr. COOLEY, Mr. wage and maximum hours requirements of New Jersey, and Mr. MARTINEZ): MANTON, Mr. COX, Mr. SALMON, Mr. NEY, Mr. that act, and for other purposes; to the Com- H. Con. Res. 110. Concurrent resolution ex- SMITH of Michigan, Mr. TAYLOR of North mittee on Economic and Educational Oppor- pressing the sense of the Congress that the Carolina, and Mr. TOWNS. tunities. current Federal alternative minimum tax re- H.R. 2205: Mr. DURBIN, Mr. FROST, Mr. By Mr. MINGE (for himself, Mr. JOHN- quiring all corporations and individuals with BAKER of Louisiana, and Mr. LUCAS. SON of South Dakota, Mr. PETERSON substantial economic income to pay mini- H.R. 2249: Mrs. MEYERS of Kansas. of Minnesota, Mr. POMEROY, Mr. mum taxes should be retained; to the Com- H.R. 2261: Mr. OLVER, Mr. BENTSEN, and HOLDEN, Mr. HILLIARD, and Mr. WIL- mittee on Ways and Means. Mrs. SCHROEDER. LIAMS): H.R. 2270: Mr. TATE, Mr. HOKE, AND Mr. H.R. 2532. A bill to provide marketing f MCINNIS. loans and a total acreage base for the 1996 H.R. 2276: Mrs. FOWLER, Mr. KIM, and Mr. through 2002 crops of upland cotton, feed PRIVATE BILLS AND EMERSON. grains, rice, oilseeds, and wheat, and for RESOLUTIONS H.R. 2333: Mr. LAHOOD, Mrs. KELLY, Mr. other purposes; to the Committee on Agri- Under clause 1 of rule XXII, private BUNNING of Kentucky, and Mr. EHRLICH. culture. bills and resolutions were introduced H.R. 2342: Mr. RICHARDSON, Mr. MCCRERY, By Mr. MOORHEAD (for himself and Mr. COBURN, and Mr. FIELDS of Louisiana. Mrs. SCHROEDER) (both by request): and severally referred as follows: H.R. 2533. A bill to amend title 35, United By Mrs. COLLINS of Illinois: H.R. 2351: Mrs. CHENOWETH. States Code, to establish the U.S. Intellec- H.R. 2537. A bill to provide for the reliqui- H.R. 2364: Mr. COOLEY, Mr. STOCKMAN, Mr. tual Property Organization, and for other dation of certain entries of imported chemi- DORNAN, and Mr. BONILLA. purposes; to the Committee on the Judici- cals; to the Committee on Ways and Means. H.R. 2429: Mr. HOYER and Ms. WOOLSEY. ary. By Ms. SLAUGHTER: H.R. 2463: Mr. UNDERWOOD, Mr. VENTO, Mr. By Mr. SANDERS (for himself, Mr. H. Res. 244. Resolution to direct the Speak- CLYBURN, and Mr. FILNER. OWENS, Ms. NORTON, Mr. KINCHEY, er to provide an appropriate remedy in re- H.R. 2507: Mr. SALMON and Mrs. MYRICK. Mr. ROMERO-BARCELO, and Mr. CON- sponse to the use of a forged document at a H.J. Res. 70: Mr. THOMPSON. YERS): subcommittee hearing; laid on the table. H. Con. Res. 47: Mr. DIXON. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, FIRST SESSION

Vol. 141 WASHINGTON, WEDNESDAY, OCTOBER 25, 1995 No. 166 Senate

The Senate met at 10 a.m., and was Mr. FORD. Mr. President, I do not bridge up front, some $80 million, the called to order by the President pro believe that the bill has been laid down State paying the balance. But instead tempore [Mr. THURMOND]. yet this morning. of doing that, Congressman Natcher I ask unanimous consent that I may would only take what was necessary PRAYER proceed as in morning business for no for that one 12-month period, leaving more than 5 minutes. the balance of the money then for his The Chaplain, Dr. Lloyd John The PRESIDENT pro tempore. With- Ogilvie, offered the following prayer: colleagues on the committee to use as out objection, it is so ordered. they saw necessary. God of power and providence, we f Unfortunately, the death of Con- begin this day of work in this Senate gressman Natcher eliminated a power- with the assurance that You will be THE BRIDGE CONNECTING ful voice and one who could be de- with us, You will never leave us or for- KENTUCKY AND INDIANA pended upon to fund the bridge. After sake us, and we remember Your assur- Mr. FORD. Mr. President, in 1987, a the demonstration projects were elimi- ance to Joshua, ‘‘Be strong and of good study was made of a major bridge con- nated on the House side and on the courage.’’ necting my State of Kentucky and the Senate side, Congressman Natcher was You have chosen to be our God and State of Indiana. It was determined— able to get some money in the bill as it elected us to be Your servants. You are this was on a major highway—that the related to appropriations and directed the Sovereign Lord of this Nation and bridge’s life would be no more than 15 a line item for this particular bridge. have destined us to be a land of right- years as it related to the ability to After Congressman Natcher’s untimely eousness, justice, and freedom. Now carry major loads. At that time, Gov. and unfortunate death, no funds were Your glory fills this historic Chamber. Wallace Wilkinson decided that he included on the House side as it related Through Your grace, You never give would do everything he could to re- to the bridge. place that bridge, and $10 million of up on us. With Your judgment, You I worked with my colleagues on the hold us accountable to the absolutes of Kentucky money was put up front. To make a long story short, the peo- Appropriations Committee here in the Your Ten Commandments. In Your Senate. We were able to make a modest mercy, You forgive us when we fail. By ple of that area approached then Con- gressman William H. Natcher, who was contribution to the construction. Your spirit, You give us strength and Now we have a budget going through courage. on the Appropriations Committee in the House, and was chairman a little the House and Senate with not one thin You also call us to maintain unity in dime in there for that bridge. the midst of diversity of differing solu- bit later of the Appropriations Com- mittee in the House. And after much As I said, there has been a lot of work tions to the problems that we must ad- done, four lanes now, for 7 miles on the dress together. So, today, guide us in study and discussion, in order to speed up the ability to have the funds as it Kentucky side, right up to the river our discussion of the issues of the bank. On the other side, the approach Budget Reconciliation Act and lead us related to that particular bridge, it was decided that it should become a dem- has been constructed by the State of to solutions that maintain our oneness. Indiana. Two piers stick out of the When the debate is ended and the votes onstration project. Otherwise, it could have been delayed for a long, long Ohio River. We say, no, we are not are counted, enable us to press on to going to finish or complete that bridge, the work ahead with unity. I pray this time. The bridge was then designated, through Congressman Natcher’s effort, with $58 million already expended. in Jesus’ name. Amen. as a demonstration project, and the I have an amendment I wanted to put Mr. SIMPSON. Mr. President, I sug- construction started through the de- on reconciliation to fund the bridge be- gest the absence of a quorum. sign, and almost 7 miles of road now cause it is a very necessary bridge be- The PRESIDENT pro tempore. The has been built. That road has been cause we are getting close to the day clerk will call the roll. built up to the river bank. The ap- when the present bridge will not be The legislative clerk proceeded to proach has been built on the Indiana able to carry traffic. That means call the roll. side. And two piers have been built in trucks will have to go at least 100 miles Mr. FORD. Mr. President, I ask unan- the middle of the Ohio River. out of their way in order to make de- imous consent that the order for the Mr. President, Congressman Natcher liveries in order to serve our area. quorum call be rescinded. was an unusual individual. Using his It is very important to the economic The PRESIDENT pro tempore. With- influence in the Appropriations Com- development of both the northern part out objection, it is so ordered. mittee, he could have funded this of western Kentucky and the southern

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S 15595 S 15596 CONGRESSIONAL RECORD — SENATE October 25, 1995 part of Indiana, a very key economic there, have been depending on this those areas where we agree, I think we development tool, the life of that par- mode of transportation because trucks should recognize there has been some ticular area. are important to the new development good work done, bringing some of this In checking, Mr. President, on this of new businesses that have come into to the floor of the Senate. I commend particular amendment, I understand that area. the people who worked to do that. that the Budget Committee—which has Mr. President, again, I regret that I do note, however, that some of the the right to do so—would make a point the majority has said to my people and proposals in this bill are very trouble- of order against my amendment and those in southern Indiana that we are some and those are the ones that will that it would require 60 votes, a just going to let the piers stick out of engender a substantial amount of de- supermajority, in order for me to pass the river like two sore spots and not bate. the amendment. Of course, I know I complete the bridge. One of my colleagues took to the cannot do that. Mr. President, I imagine my 5 min- There are things in this life that you floor yesterday, and I am sure it took utes are up. I know the Chair is pa- a fair amount of courage to do so. Sen- realize cannot be done. You accept that tient, and I appreciate that, but I did and move on. Well, I accept this for the ator SPECTER spoke at length about want the record to reflect that I am this reconciliation bill, and one thing moment. I accept this for the moment. very disappointed in the way that the We are going to revisit this question he said struck me. He said, and I am constituents in Indiana and Kentucky paraphrasing, ‘‘I have concern that the time and time again because it is an have been treated in this particular abomination for a major highway to tax cuts are unfair or at least give the budget for this particular item. perception of unfairness.’’ Senator have a major bridge constructed to a I yield the floor. SPECTER said, ‘‘I express this concern point—two piers sticking out of the The PRESIDING OFFICER (Mr. Ohio River—and not a dime to com- because much of the pain of the spend- GREGG). The Senator from North Da- ing cuts goes to the elderly, the young, plete it. kota. My State is not a wealthy State, but the infirm, while allowing tax cuts for the money is available by the State to f corporate America and those in higher pay for its part, and it has paid more RECONCILIATION brackets.’’ than its part in the designation of the It is not often that someone in the Mr. DORGAN. Mr. President, today, highway to the bridge and the four- Chamber speaks in such an unvar- the Senate will begin deliberating lane facility, and the bridge will be a nished way. I am sure it was not easy something called the budget reconcili- four-lane facility and has been recog- for Senator SPECTER to do, because I do ation bill, which for most Americans is nized as one of the outstanding designs not think that is the prevailing mes- a term that does not mean very much. for not only design but safety that we sage on that side of the aisle. Yet that The reconciliation bill means reconcil- have had in this country. is what is in these 2,000 pages. ing spending on Federal programs to Mr. President, I regret the attitude It seems to me that, while containing of the Budget Committee. At least I the terms of the budget agreement that was agreed to earlier this year by the some good recommendations and some thought I might have a fighting chance commendable work, this bill is also a to be able to secure the funds for this Congress. The reconciliation bill is probably vehicle making profound changes in bridge. However, if the Members on the Medicare and Medicaid. It is also going other side stick together, then I have one of the most significant pieces of legislation that has been considered in to make it harder for middle-income no chance. parents to send their kids to college. It I just wanted the record to reflect this Chamber in several decades. Yet we were provided with the reconcili- represents a set of priorities that I this morning that my constituents and think Senator SPECTER properly says those in Indiana are being denied infra- ation bill late yesterday afternoon. For purposes of illustrating what the will impose most of the burden on structure, that $58 million of our tax lower income folks and will bestow dollars have been spent, and they say, Senate is going to be considering, this bill is contained in these two volumes, most of the benefits on those who are ‘‘No, we will not build the rest of it.’’ It very privileged in our country. seems to me that it is no longer a dem- about 2,000 pages of legislation. It is There is reason for us to be having a onstration project, with $58 million 1,949 pages, to be exact, and was deliv- disagreement if we each believe in a having been spent, the piers being built ered late yesterday to our desks. different approach. I happen to agree in the river, and the span now is all Because there was a World Series that we should cut spending, but I do that is lacking. game last night and I was preoccupied, think there are some areas of spending This new majority here in the Con- unfortunately, until the 11th inning of that are more important than others. I gress has said to my people, ‘‘We are that game—until quarter to 1 in the personally do not support the star wars not going to finish it. It is up to you.’’ morning—I did try to muddle my way program. I do not think we have to They even reduced the funds to my through these 2,000 pages but without build 20 more B–2 bombers at $30 bil- State by some $45 million for this fiscal great success. This is not a very good lion. I could go through a whole list of year compared to last fiscal year, and way to legislate. items I think we should cut. But I do they say, ‘‘Just take it out of your However, I want to make two points think it is valuable to keep the Head funds and build it.’’ about this bill. First, even though Well, that is not easy to swallow. I do there will be a lot of criticism back Start Program running and fully fund- not intend to see my people denied and forth, and much of it justifiable, ed. I do not think it is wise to kick something that is real, something that we should recognize that there are 55,000 kids off Head Start. I think it is is necessary, and something I do not some provisions in this bill on which valuable to keep kids in Head Start. think you could hold fault with, take both political parties agree. There are That is a priority of mine. This is umbrage with, because of its need, and things in this reconciliation bill that going to be a debate over the next 3 or we are in the position which we are in. make a lot of sense, and I commend the 4 days about priorities. Mr. President, I will file my amend- majority party for a number of things Again, I have said this several times ment. I will not call it up. I want it to that they intend to do. For instance, in the last couple of weeks, but people be on record. It will be there. I will we do need to cut spending. should not lament the fact that we are offer it this afternoon, at least file it at There are a number of areas of spend- debating and aggressively disagreeing the desk and let my colleagues know of ing cuts offered by the majority party in this Chamber. The way you reach my interest and how much damage for which I say to them, ‘‘Good job; I compromise is to take different posi- they are doing to the commerce from support you.’’ There are areas here tions that you might believe in very south to north that goes through Ten- where there is agreement. The Amer- strongly, debate them aggressively, nessee, Kentucky, on into Indiana, that ican people in most cases hear only and from that debate comes com- hooks up with interstate highways. about where we disagree —for good rea- promise. My hope is that there will be It will cause major economic devas- son, because there is no need to stand a compromise on this reconciliation tation to our area. Many companies up and debate for hours about an issue bill after these 2,000 pages are most that have built there, that have come where there’s already agreement. In likely passed by the Congress without October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15597 my vote and then vetoed by the Presi- America into a downward spiral of big- Congress, for that matter, on either dent of the United States. Following ger government, higher deficits, more side of the aisle. that veto, there must follow, by neces- taxes, and a financially bankrupt Medi- By rewarding those who save and in- sity, some kind of compromise. This care system. vest, our capital gains tax cut will also system is predicated on compromise. Or we can move America up to a create jobs and opportunity. I think this is a sign of strength. We brighter future, a future where our There is an undeniable truth that the come to the floor. We discuss 2,000 children and grandchildren are free President has tried to ignore for pages. It is not a sign of strength that from staggering deficits. A future months and months. And that is the we get 2,000 pages in the late afternoon where power flows from our States to fact that three of the President’s own and are told, ‘‘By the way, we will start Washington, and not the other way Cabinet members tell us that if no ac- in the morning.’’ That is not the right around. A future with a strong and se- tion is taken, Medicare will be com- way to do it. cure Medicare Program. pletely broke by the year 2002. But we will have, I think, in the next Mr. President, I believe the choice is This bill makes the tough decisions few days, a pretty aggressive debate clear. necessary to preserve, protect, and For this historic Republican Con- about priorities, and I hope at the end, strengthen Medicare. And we have been gress, the vote on the reconciliation after this bill is vetoed, we will come aided a great deal in this effort by the bills will be a defining moment. It will back to another set of priorities that Presiding Officer, the Senator from better represents this country’s inter- be the moment when the American New Hamphsire, Senator GREGG. ests. public will see that we are not business Mr. BYRD. Mr. President, will the as usual. We are not the status quo. We do it by slowing its rate of distinguished Senator yield? Rather, this Congress is one that keeps growth, and by giving seniors more op- Mr. DORGAN. I will be happy to its promises to the American people. tions in selecting their health care. yield to the Senator. There will be plenty of debate in the And despite the phony talk you may Mr. BYRD. It is a sign of strength coming days, and I know the American hear of ‘‘cutting Medicare,’’ the Repub- just to be able to lift this monstrosity. people will be listening closely. Judg- lican plan will increase Medicare Does anybody in this Senate know ing from what has been coming out of spending from $4,800 per beneficiary in what is in this bill; 1,949 pages? We will the Whit House lately, I know they will 1995 to $6,700 per beneficiary in 2002. be flying deaf, dumb, and blind, be- hear a lot of rhetoric, and a lot of scare Let me repeat: The Republican plan cause we do not know what we are vot- tactics. will increase Medicare spending from ing on here. I suppose there are a few But I believe that in the end, they $4,800 per beneficiary in 1995 to $6,700 members of the Budget Committee who will see through this smokescreen, and per beneficiary in 2002. will know something about it, but the they will see the truth. I know that during the next few days, rest of us, though, do not. It is a mon- And the truth is that the Republican some of my friends on the other side of strosity. It is an abomination. And we budget contained in this bill is a realis- the aisle will be painting horrible pic- have all of 20 hours—20 hours for de- tic, thoughtful budget blueprint for tures. They will tell us that passage of bate, for amendments, motions, et America. The truth is that it will this bill means we are turning our cetera. It is ridiculous. ratchet down the deficit by roughly $30 backs on children, on seniors, and on I thank the Senator for yielding. billion a year during the next 7 years. the disabled. They will repeat it again Mr. DORGAN. I could not agree more The truth is that it will balance the and again. But no matter how many with the Senator. Again, I think this budget in the year 2002. And the truth times they repeat it, it does not make will be vetoed and perhaps after that, is that it is the only real honest budget it true. we will have a more orderly process plan before the American people. Mr. President, I wish all Americans that results in better priorities. The truth also is that a balanced could read the column by budget expert Mr. President, I yield the floor. budget means a brighter future for our James Glassman that was printed in The PRESIDING OFFICER. The Sen- children and grandchildren. Our na- the October 17 edition of the Washing- ator from Mississippi. tional debt is now so huge that a child ton Post. Mr. Glassman’s column—and Mr. LOTT. Mr. President, I suggest born in 1995 will pay more than $187,000 I ask unanimous consent that it be the absence of a quorum. in taxes over his or her lifetime just to printed in the RECORD following my re- The PRESIDING OFFICER. The pay their share of the debt. We owe our marks—makes clear the falsehoods clerk will call the roll. children a far better future. contained in some of the emotional The legislative clerk proceeded to A balanced budget will create lower rhetoric we have been hearing. call the roll. interest rates, which means that more The PRESIDING OFFICER. Without Mr. DOLE. Mr. President, I ask unan- Americans will be able to own a house, objection, it is so ordered. imous consent that the order for the buy a car, or go to college, or to borrow (See exhibit 1.) quorum call be rescinded. money. Lower interest rates also mean The PRESIDING OFFICER. Without business will have more money to in- Mr. DOLE. Mr. Glassman writes that objection, it is so ordered. vest and hire workers. under the Republican plan, Federal Mr. DOLE. Mr. President, as soon as The truth also is that the American spending will rise between 1995 and 2002 Senator DASCHLE or Senator EXON are people are more able to decide how to by $358 billion—or 24 percent. It is on the floor, I will call up the rec- spend their hard earned money than going to rise 24 percent over the next 7 onciliation package, but I will await are Government bureaucrats. years. Is that devastation? Is that cut- their arrival and go ahead and make And with the $245 billion tax cut con- ting programs? No. Only in Washington my remarks. tained in this bill, millions of Amer- would a $358 billion increase be called a f ican families will have more money to cut. spend. Our $500-per-child tax credit will The media bought onto the Presi- THE RECONCILIATION BILL mean that over the coming years, fami- dent’s spin for the most part; they keep Mr. DOLE. Mr. President, 31 years lies will have thousands and thousands talking about it. Turn on NBC, and ago this Friday, Ronald Reagan deliv- more dollars to spend on college tui- Katie Couric is talking about ‘‘big ered a nationally televised speech that tion or braces for their kids. cuts, big cuts.’’ She does not know any- began his career in politics. The speech We will include in the RECORD during thing about the budget. All she is pick- was called ‘‘A Time for Choosing.’’ the debate how such money will be ing up on is the liberal spin which the Ronald Reagan made clear that the coming to each State, such as my own Democrats have been dishing out there choice facing America was not one be- State of Kansas. There are a lot of fam- with no facts, no effort to save Medi- tween right or left—rather it was one ilies with children. They are not rich. care, to balance the budget, or tax between up or down. But a $500 tax credit—if you have two cuts; a lot of talk, but that is about all. More than three decades later, this or three children, that is $1,500. They Mr. Glassman makes very clear that Congress now faces that same choice. can spend it better on their families President Clinton was absolutely off We can either go down the path of than any bureaucrat I know of in the mark when he said—and I quote— the status quo—a path that will lead Washington, DC, or any Member of ‘‘I will not let balancing the budget S 15598 CONGRESSIONAL RECORD — SENATE October 25, 1995 serve as a cover for destroying the so- and opportunity. That is what this de- even growing at a moderate 2.4 percent a cial compact.’’ bate is going to be all about. year, is so powerful that it will generate The truth is, as Mr. Glassman writes, There will be some policy differences, vastly higher tax revenues. if the budget becomes law, the social obviously—some legitimate policy dif- The aggregate numbers I’ve just cited— ferences, but there will also be a lot of 1989-95 vs. 1996-2002—are probably the best compact will actually be strengthened, way to look at budget changes. But, in case for not only will the Government keep politics, and we prepared for that. And you think I’m pulling a fast one, let’s look its commitments to the elderly and the I just urge my colleagues on this side simply at two specific years: the one just poor, it will also meet an even more of the aisle, this is the most historic past (fiscal 1995) and the one in which the important obligation to the public—the moment in my memory in the Congress congressional resolution requires a zero defi- obligation to spend no more than it of the United States. And I have been cit (fiscal 2002). takes in. here for some time. Never before have In 1995, federal spending was $1.5 trillion. If current policies were to continue, spending, Throughout this process, on every we tried to bring about such fundamen- tal change. It is going to be up to us. according to the CBO, would be $2.1 trillion major issue contained in this legisla- in 2002. That’s an increase of $600 billion, or tion, the Speaker and I have invited We have the majority. It is our respon- 40 percent. Under the GOP plan, spending President Clinton to join with us in sibility. And we need 53 Republicans will rise between 1995 and 2002 by $358 billion, giving the American people the fun- standing together when the final vote or 24 percent. (That’s slightly ahead of infla- damental change they want. Instead of comes. tion if prices increase 3 percent annually.) sitting down with us, however, the So I urge my colleagues to pay atten- Only in Washington would a $358 billion in- President has flown around the coun- tion. I know that both Senators DO- crease be called a ‘‘cut.’’ In fact, Republicans try making speeches, playing politics, MENICI and EXON will be explaining in who want to sound as if they’re making big changes and Democrats who want to frighten taking polls, and avoiding the work detail all the different amendments and their opposition or support for the the public both say that the GOP budget and making policy decisions. The ‘‘cuts’’ total about $1 trillion. This absurd President apparently believes that the different amendments. figure is derived by taking the difference be- American people do not really want a EXHIBIT 1 tween the CBO’s projection and the Repub- balanced budget. He believes that the [From the Washington Post, Oct. 17, 1995] licans’ proposed spending for each year from people are so dependent on the Federal THE NO-CUT BUDGET 1996 to 2002, then adding all seven numbers Government that they will not tolerate (By James K. Glassman) up. Consider Medicare. Politicians talk about slowing its rate of growth. He believes Despite what you’ve read and heard, the $271 billion in cuts, but actually, under the Republican budget—now moving toward pas- the American people are willing to sac- GOP plan, spending in 2002 will be $86 billion sage in its final, ‘‘reconciliation’’ form—does rifice the future of their children and higher than in 1995, an increase of more than not cut total federal spending, nor does it grandchildren so that the Government 6 percent annually. can continue its free spending ways, cut tax revenues. Not by a long shot. An illuminating way to look at this budget The real question for voters assessing the and he is wrong, and he will find out is to take what the government actually GOP budget is where the additional $358 bil- that he is wrong. And one of these days spent and raised over the past seven years lion in federal spending in 2002 is going. The he is going to find out how to contact and compare it to what Republicans propose answer is entitlements: Social Security will the majority leader in the Senate and to spend and raise over the next seven years. cost $146 billion more in 2002 than in 1995, the Speaker of the House, and when he The results: Medicare (for the elderly) will cost $86 bil- Spending will increase by $2.6 trillion. lion more and Medicaid (for the poor) will does we are willing to sit down with cost $35 billion more. the President of the United States. Revenues will increase by $3.3 trillion. These figures may surprise you; they run Miscellaneous entitlements (food stamps, But right now it is all rhetoric. It is counter to what you’ve seen in the press, the earned income tax credit, military re- all politics. It is all polls. It is all scar- which continually uses the word ‘‘cuts’’ tirement, etc.) will rise $63 billion. Add in- ing seniors, scaring veterans, scaring when referring to both spending and taxes. terest on the national debt (there’s nothing children, and all a week before Hal- But in the misleading baseline-budgeting no- we can do about that one), and the total ad- loween. Maybe by the time Halloween menclature of Washington, a cut is a reduc- ditional spending exceeds $358 billion. comes he will have everybody in a tion from a previously projected increase. By deciding to preserve and increase these entitlements, Congress had nothing left for state of frenzy and we will be in that The real spending and revenue numbers show something quite different: that the Re- increasing the ‘‘discretionary’’ side of the funk the President talked about. He publican revolution is more modest than budget, where outlays will total $515 billion said America is in a funk. America is both Republicans and Democrats claim. in 2002, down from $548 billion in 1995. not in a funk. They want fundamental During the seven years from 1989 to 1995, Defense comprises most of discretionary change, and we are about to give them federal spending totaled $9.5 trillion. During spending, and it will be flat at roughly $270 fundamental change. We would like to the next seven years, the congressional budg- billion. Transportation spending will fall do it with the President’s cooperation. et agreement calls for spending of $12.1 tril- from $39 billion to $32 billion; education and I am reminded of the words of Win- lion. training will drop from $39 billion to $35 bil- As for revenues: During the seven years lion; foreign aid and other spending on inter- ston Churchill who said: just past, the government collected $7.9 tril- national affairs from $21 billion to $15 bil- We have not journeyed all the way across lion in taxes. Over the next seven years, the lion. the centuries, across the oceans, across the Republican plan will raise $11.2 trillion in Intelligent folks can differ on where to mountains, across the prairies, because we taxes—even taking into account the $500-per- spend the government’s money. Maybe de- are made of sugar candy. child credit and GOP changes to capital fense should be cut and transportation in- I say to President Clinton: Mr. Presi- gains that will reduce expected tax revenues creased. by $245 billion. dent, the American people are not But once the nation has decided to balance If Congress did not make any changes to the budget, keep Social Security intact and made of sugar candy. They are far the budget, spending would rise by 37 percent pare back expected tax revenues slightly stronger and wiser than you think. and revenues by 44 percent, the Congres- (and voters made those decisions last No- I also say that this Republican Con- sional Budget Office (CBO) estimates. But vember), the choices are pretty limited. gress is not made of sugar candy. We under the GOP seven-year plan, spending President Clinton knows this very well, promised we would balance the budget, will rise by 27 percent and tax revenues by 41 but with a devotion to the first-person sin- and we will. We promised we would cut percent. gular exceeded only by Sen. Phil Gramm’s, Stop and think about those numbers. They he said on Friday, ‘‘I will not let balancing taxes, and we will. We promised we seem to represent a reasonable path toward would preserve and protect and the budget serve as a cover for destroying an objective that most Americans share: a the social compact.’’ strengthen Medicare, and we will. We zero deficit. The truth is that, if Congress’s budget be- promised we would have welfare re- In the fiscal year that ended on Sept. 30, comes law, the social compact will actually form, and we will. October 1995 is a 1995, the government ran a deficit of $161 bil- be strengthened. Not only will the govern- time for choosing, and I invite all Sen- lion. If nothing is done, CBO says the annual ment keep its commitments to the elderly ators on both sides of the aisle and all deficit will continue to rise in 1996 and each and the poor on health care, it will also meet successive year, reaching $256 billion in 2002. an even more important obligation to the Americans, regardless of their party, Any business or household facing such a public that it abrogated 30 years ago—to regardless of their philosophy, to stand prospect would quickly reduce its spending. spend no more than it takes in. with us as we move our country up to But the federal government doesn’t have to a future of unlimited hope, freedom, do that—mainly because the U.S. economy, October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15599 THE BALANCED BUDGET Mr. DOMENICI. We are not agreeing then I will yield. To Republican Sen- RECONCILIATION ACT OF 1995 on different allotments of time or dif- ators, this is, as I understand it for the The PRESIDING OFFICER. Under ferent treatment of amendment times. last few weeks, a very important cou- the previous order, the Senate will now I have no objection. ple of days. Many of you want to speak The PRESIDING OFFICER. Without proceed to the consideration of S. 1357, on subject matters before the Senate objection, it is so ordered. which the clerk will report. and some want to just speak about a Who yields time? The legislative clerk read as follows: balanced budget. I want to say to all Mr. DOMENICI addressed the Chair. the Republican Senators I am going to A bill (S. 1357) to provide for reconciliation The PRESIDING OFFICER. The Sen- do my very best to accommodate you, pursuant to section 105 of the concurrent res- ator from New Mexico. but I would tell Senators that it is not olution on the budget for fiscal year 1996. Mr. DOMENICI. Mr. President, would easy to just give you a time when you The Senate proceeded to consider the Senator EXON like to proceed with part want it. So I would hope that Senators bill. of his time? Mr. DOLE. I ask unanimous consent Mr. EXON. For clarification of all, I would be flexible, and if we call on you, that Senator DOMENICI be recognized was advised the chairman of the Budg- if you turn in your names, if you really want to speak and if we call on you, for up to 60 minutes for debate only et Committee, and Senator ROTH, the and Senator EXON for up to 30 minutes chairman of the Finance Committee, you be able to do it on a half-hour’s no- for debate only. would be speaking, as I understand it, tice or so because I just cannot arrange Mr. EXON. Reserving the right to ob- during part of the 1 hour that the Sen- the floor in any other way. ject, I would like to make a clarifica- ator has reserved. As a result of that, I Having said that, I yield the floor at tion on this, if I might, and I do not have alerted Senator MOYNIHAN, the this time. think we have a difference of opinion ranking Democrat on the Finance The PRESIDING OFFICER. The Sen- on this. Committee, and basically I would sim- ator in Nebraska. It is the desire of the majority to ply say that the opening remarks be- Mr. DOMENICI. Before the Senator move as quickly as we can into the ginning on this side would be essen- proceeds, will the Senator engage me amendment process, and as Senator tially 15 minutes for myself and 15 min- in a little dialog about our efforts to DOMENICI knows—and I suspect he has utes for the ranking Democrat on the see if we can better manage? told the majority leader—we are work- Finance Committee, which I think will ing to try to cut these down to move Mr. EXON. Yes. basically take up most of the half hour. Mr. DOMENICI. I believe, Senator this proposition along. However, since Then it is up to the Senator to allot we are limited to 10 hours each, as I EXON, we are going to have some time the time on that side. during this hour and a half, you and I, understand the unanimous-consent re- Is the chairman suggesting that he and perhaps your leader and I under- quest that has just been offered by the would like to have me proceed with my stand you have a small task force. majority leader, there would be 1 hour opening statement at this time? off of the Republican 10 hours, if we Mr. DOMENICI. Yes, I think so other Mr. EXON. Yes. agree to this, and a half an hour on our than if the Senator would give me 3 Mr. DOMENICI. I have asked our side, which would mean that you are minutes for a little kind of house- leader if we could use his office, so I giving up an hour; we are giving up a cleaning work. wonder if maybe looking at the clock, half an hour of our 10. Is that right? Mr. EXON. Yes. And I would ask if you could arrange a meeting at Mr. DOLE. We would like to have you unanimous consent that this house- maybe 20 after, 25 after. You would be give up more but we will settle for keeping work not be charged to either finished speaking. And we would have that. side. our side start going. Could we meet in Mr. EXON. Let us not press it at this The PRESIDING OFFICER. Without the leader’s office about trying to re- time. objection, it is so ordered. duce the number of amendments and Mr. DOMENICI. That is correct. Mr. DOMENICI. I thank the distin- make some accommodation? The PRESIDING OFFICER. Is there guished Senator. Mr. EXON. It sounds reasonable. Are objection? Mr. President, I ask unanimous con- you suggesting the timeframe of 11:20? Mr. DOMENICI. Reserving the right sent that the following staff of both Mr. DOMENICI. Yes. I said 10 but let to object. the majority and minority on the us say 11:20. Mr. DOLE. Let me just say—and I am Budget Committee be permitted to re- going to depart here. I first want to say main on the Senate floor during con- Mr. EXON. Agreed. I hope we can work out some agree- sideration of S. 1357 and that the list be Mr. DOMENICI. Let me make sure in ment so that we are not having 50 votes printed in the RECORD. this dialog, in this exchange that ev- here before final passage when you do There being no objection, the list was erybody understands—— not have any time to debate the ordered to be printed in the RECORD, as Mr. MOYNIHAN. Will Senator ROTH amendments. And I think I could speak follows: have spoken by then? for my colleagues on this side that we MAJORITY STAFF Mr. DOMENICI. I hope so. We have would be prepared, if there were a num- Karen Bilton, Lisa Cieplak, Jim Hearn, sent word for him to come. Keith Hennessy, Bill Hoagland, Carol ber of basic major amendments the I thank the Senator very much. Democrats wanted to offer period, we McGuire, Anne Miller, Roy Phillips, Denise Mr. MOYNIHAN. I thank the Sen- might be able to convince our col- G. Ramonas, Cheri Reidy, Ricardo Rel, J. ator. leagues not to second degree those Brian Riley, Mike Ruffner, Melissa Sampson, Jennifer Smith, Austin Smythe, Bob Steven- Mr. DOMENICI. Everybody knows amendments, if there were no other son, Beth Wallis. amendments following that. And I hopefully that the Senator from New MINORITY STAFF Mexico on most matters coming before know that is being worked on, and we Amy Abraham, Annanias Blocker, Bill hope to reinvestigate that shortly after the Senate that he has anything to do Dauster, Kelly Dimock, Tony Dresden, Jodi with tries to be fair, and I truly intend noon. Grant, Matt Greenwald, Joan Huffer, Phil I now have to leave, but I would be Karsting, Jim Klumpner, Daniela Mays, Sue to do that. But I do want to state right happy to work with the Senator from Nelson, Jon Rosenwasser, Jerry Slominski, up front that there are many Repub- Nebraska. We have in the past. Maybe Barry Strumpf. lican Senators, if not every one, who do we can this time around. Mr. DOMENICI. Mr. President, I ask not want to have the Senate go The PRESIDING OFFICER. Is there unanimous consent that the presence through 50 or 60 votes on single tar- objection? and use of small electronic calculators, geted issues. Mr. DOMENICI. Reserving the right as we have done heretofore, be per- I might just suggest right up front, to object, we have no objection to Sen- mitted in the Chamber during the con- for those who are going to do that and ator EXON’s restatement of the propo- sideration of this measure. insist, with the Senator’s leadership, sition so long as it is not intended to in The PRESIDING OFFICER. Without that they are going to do that, they any way change the allocation other objection, it is so ordered. will not get a vote on their amend- than this hour and this half-hour. Mr. DOMENICI. Mr. President, 1 ment. I mean, they can be assured that Mr. EXON. No, no. minute off my time at this point and they will not, because we will indeed S 15600 CONGRESSIONAL RECORD — SENATE October 25, 1995 second degree those kinds of amend- This reconciliation bill was created nonsense. It is this bill that fires the ments. And we have as much stamina, behind closed doors. It is the first of first shot of class warfare. It is this bill I think—I do not know—as much stam- the illegitimate births of this union. that goes to war against the working ina as the other side of the aisle. By comparison, it makes ‘‘Rosemary’s people on behalf of the wealthy. Mr. EXON. And more votes. Baby’’ look like a dream child. They Mr. President, the more this budget Mr. DOMENICI. And more votes. The brought it out into the light of the day is exposed to the sunlight, the more we Senator got it. That is very important. for the first time at midday last Fri- are finding that this is not the right We only need 50. Let us make sure that day. There were no hearings on Medi- key to open a complicated problem is understood on both sides. care. There were no hearings on Medic- which we all agree is necessary—bal- On the other hand, we are meeting to aid. There were no hearings on the cuts ancing the budget. try to see if we can accommodate a of the earned income tax credit. There I am one of the few Senators who has more amicable approach. And let us were no hearings on the cuts in edu- actually balanced budgets and used the hope that we can. I yield the floor. cation. There were no hearings on how line-item veto to do it. I did it for 8 The PRESIDING OFFICER. The Sen- this budget cuts a huge swath like a years as Governor of Nebraska. But I ator from Nebraska. tornado through rural America. say to my colleagues today, this Re- Last Friday, during the markup of Mr. EXON. Mr. President, I thank my publican budget is not the way to do it. this reconciliation bill, I asked if we friend and colleague. I want to con- Tax breaks for the wealthy are writ could not hear from just four witnesses tinue to work together. We have sharp large all over this reconciliation bill. differences on these things, but I think who could describe how this Repub- lican budget would do great violence to Tax breaks for the wealthy have riv- over the period of time for the 18 years eted the attention of the Republicans that we have served on the committee their lives. I asked for an hour. That is just 1 minute for each $4.5 billion in to the exclusion of everything else. Tax together we have been accommodating breaks for the wealthy have estab- to each other. I think that is the de- Medicare cuts. But my offer was spurned. lished primacy over time-honored com- sire. mitments to provide a safety net for I will simply say that the chairman Why the hurry, Mr. President? Why our fellow citizens. of the committee has indicated that is the majority so breathless about people on that side are very much con- sealing the deal on this budget? Why Medicare became the most conven- cerned about how we proceed on this. are they now moving in convoy fashion ient laboratory for conducting these That is true on this side. Unfortu- to pass this bill? The great pitcher, tax breaks. The Republican Medicare nately, with the time constraints that Satchel Paige, might have had the an- plan cuts the program three times we have, with the mammoth bill we swer. He once said, ‘‘Don’t look back. more than necessary to keep it solvent have before us, the Senator from Ne- Something might be gaining on you.’’ through the year 2006, just to pay the braska is going to have to be an un- Something is gaining on the Repub- freight for the tax breaks. popular traffic cop, trying to direct licans. They are hearing footsteps. The Republican reconciliation bill traffic to say no, since we do not have They are hearing the American people doubles the premiums under part B time. But at this time I yield myself 15 gaining on them. More and more Amer- Medicare. It doubles the deductibles minutes, and ask that I be notified if I icans are finding out what is in this under part B. It increases the Medicare exceed that time. monstrous bill. And they feel deceived eligibility age from 65 to 67, all for the Mr. President, there was a marriage and betrayed. tax breaks. Mr. President, I will speak in a mo- on Monday, a marriage that did not And on October 2, in an editorial in ment about the particulars of this rec- quite make the wedding notices. As my the New York Times, the Times states, onciliation bill and the terrible hard- colleagues know, the Republican ma- and I quote: ships that it inflicts. But I would like jority on the Budget Committee gener- to take a moment to discuss what I be- Right now, Medicare makes up less than 12 ously provided $224 to $245 billion in lieve is the large picture here. percent of the Federal budget. But Medicare tax breaks for the wealthiest Ameri- When we get into these debates about cuts account for more than twice that per- cans and wedded it officially to the $270 centage of the lower spending in the Repub- budget resolutions and budget rec- lican approved budgets over the next 7 years. billion in Medicare cuts. The seniors of onciliation bills, Senators can all too America paid for that wedding, and Not withstanding Mr. Gingrich’s appeal, the easily lose sight—lose sight—of the or- facts clearly demonstrate that health pro- they will pay and pay and pay again dinary Americans. The stage over- grams for the elderly are bearing a dis- over the years. The Congressional shadows the people on it. In this same proportionate share of the austerity pushed Budget Office issued the marriage li- vein, my colleagues on the other side by the Republicans. cense. In an October 20 letter to me, cannot see beyond the gesture of the Mr. President, I ask unanimous con- CBO Director O’Neill wrote that with- moment. They cannot see beyond the sent that the full editorial that I have out the drastic cuts in Medicare, the scaffolding they have erected in this referenced in the New York Times be tax break for the wealthy would not reconciliation bill. They cannot see the printed in the RECORD at the conclu- have been possible. people that they will harm. They can- sion of my remarks. I ask unanimous consent that her not see the Nation that they are tear- The PRESIDING OFFICER (Mr. letter be printed in the RECORD at the ing apart. This Republican budget does FRIST). Without objection, it is so or- conclusion of my remarks. not speak to the American values that dered. The PRESIDING OFFICER. Without I know and the ones that I cherish, val- (See exhibit 2.) objection, it is so ordered. ues that I see every day in my fellow Mr. EXON. Mr. President, the shock- (See exhibit 1.) Nebraskans. The greatest of these val- Mr. EXON. The happy couple of tax ues are shared sacrifice, fairness, and ing truth is that more than 88 percent breaks and Medicare cuts are now be- compassion for our neighbors. That is of the Republican mandatory cuts fore the Senate in the form of the rec- the social fabric that runs through our come from means-tested programs, onciliation bill. They are asking for great Nation. But this Republican those which serve predominantly low- our blessing. We should not give it. budget is tugging at every thread to and moderate-income Americans, and This marriage should be annulled. Had unravel it. from Medicare, where three-quarters of the question been asked, ‘‘Is there any- In spite of the inflated rhetoric, the the beneficiaries have annual incomes one present who objects to the joining Republican budget reached a shallow under $25,000. of these two, speak now or forever hold bottom in no time at all. Some have A Joint Economic Committee study your peace?’’ I would have objected. called it social Darwinism at its shab- also concluded that the poorest fifth of Mr. President, it has been almost 4 by worst, I say, where citizens are pit- Americans would shoulder fully half of months since the Senate passed the ted against citizens, young against the the proposed program cuts, for an aver- conference report on the budget resolu- old, rural Americans against urban age loss of nearly $2,500 per family in tion which begat this reconciliation Americans. the year 2002. There are no breaks for bill, a bill that has now grown to gro- Last week Speaker GINGRICH feigned these folks in this Republican bag of tesque proportions. that he wants no class warfare. What tricks. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15601 The Republicans trumpet that their and develop a true and workable com- reward the wealthy at the expense of the tax breaks will benefit all Americans, promise. If we can stop this Republican poor. They are also sacrificing the health especially the middle class. The truth, juggernaut and stop it now, we can get needs of the elderly to pay for a tax cut for however, sounds a different note, and it on with fashioning a reasonable for- the affluent. Incredible, Mr. Gingrich was ac- cusing the Democrats of formenting class and is definitely sour. mula to balance the budget. generational resentments by pointing this Last week, the Joint Committee on The PRESIDING OFFICER. The Sen- out. President Clinton can do no less than Taxation confessed that families mak- ator has used his time. veto the Republican legislative package that ing up to $30,000 a year—and that is Mr. EXON. I allocate myself 2 addi- is roaring toward passage in Congress. about half of all taxpayers—would ac- tional minutes. We have long argued that Medicare, the tually see their taxes go up under the Mr. President, if we pass this bill, it health insurance program for elderly Ameri- Republican tax plan. Yes, Mr. Presi- will certainly receive a Presidential cans, is in need of reform. Many Republican dent, their taxes would go up. They veto, and we will belatedly start all ideas for introducing competition into the would pay more for increased Medicare over again. health care system and forcing providers to premiums and deductibles. They would The American woman of letters, Lil- deliver care more efficiently are sound. But the cuts being pushed through Congress are pay more for new student loan fees. lian Hellman, once commented: ‘‘I can- so big they threaten to dry up money for They would pay more for higher taxes not and will not cut my conscience to medical training, devastate nursing homes on State and local employees. They fit this year’s fabric.’’ and drive hospitals and doctors away from would pay more for higher contribu- Nor will I, Mr. President. I will vote taking care of Medicare patients. Right now, tions for GI bill benefits. against this budget, and I urge my col- Medicare makes up less than 12 percent of What about the other side of the gild- leagues to do the same. the Federal budget. But Medicare cuts ac- ed reconciliation bill? The Treasury I reserve the remainder of my time, count for more than twice that percentage of Department estimates that nearly and I yield the floor. the lower spending in the Republican-ap- half—nearly half—of the Senate’s tax proved budgets over the next seven years. EXHIBIT 1 Notwithstanding Mr. Gingrich’s appeal, the breaks would go to 12 percent of the U.S. CONGRESS, facts clearly demonstrate that health pro- American families making $100,000 a CONGRESSIONAL BUDGET OFFICE, grams for the elderly are bearing a dis- year or more. Washington, DC, October 20, 1995. proportionate share of the austerity pushed The New York Times also said, and I Hon. J. JAMES EXON, by the Republicans. quote: Ranking Minority Member, Committee on the The charge that Democrats have been The Republicans are rushing through Con- Budget, U.S. Senate, Washington, DC. playing on American resentments has also gress the greatest attempt in modern history DEAR SENATOR: Pursuant to Section 205(a) been sounded by Bob Dole, the Senate major- to reward the wealthy at the expense of the of the budget resolution for fiscal year 1996 ity leader, who recently accused Mr. Clinton poor. (H. Con. Res. 67), the Congressional Budget of encouraging ‘‘envy and class warfare.’’ He Earlier in my statement, I mentioned Office on October 18 provided the Chairman made it sound almost Marxist to discuss of the Senate Budget Committee with a pro- that the Republicans are not only pit- which classes gain and which lose in any leg- jection of the budget deficits or surpluses islation. True, the Democrats are playing ting young against old and rich against that would result from enactment of the rec- the politics of winners and losers,but their the middle class, but our rural areas onciliation legislation submitted to the criticisms are rooted in a certain reality. against urban industrialized centers Budget Committee as of that date. As stated It was the Republican-controlled Joint throughout the many States of our in the letter to Chairman Domenici, CBO Taxation Committee that acknowledged last great land. projected that there will be a total-budget week that families making up to $30,000, This Republican reconciliation bill is surplus of $10 billion in 2002, using the eco- about half of all taxpayers, would actually a cruel joke, above everything else, nomic and technical assumptions underlying see their taxes go up under the tax package upon rural America. More than 9 mil- the budget resolution, and assuming the heading toward approval in the Senate. The level of discretionary spending specified in lion rural Americans will pay higher reason is that the Republicans are insisting that resolution. If the estimated Medicare on scaling back the earned-income tax cred- out-of-pocket costs for second-class savings in 1996 through 2002 resulting from Medicare programs. The typical rural it, which goes to low-income workers to keep the legislation submitted by the Finance them out of poverty. The Treasury Depart- hospital could find its annual budget Committee were excluded from the calcula- ment estimates that nearly half the Senate’s cut by a third, forcing many to close tion, CBO would project a deficit of $82 bil- $43 billion in tax cuts, meanwhile, would go and causing many physicians to leave lion in 2002. Similarly, if any other savings to the 12 percent of Americans in families and to never return. Medicaid cuts will submitted to the Budget Committee were ex- earning $100,000 or more. cluded from the calculation, CBO would eliminate coverage for 2.2 million rural On the spending side, it takes ideological project a higher deficit. blinders to argue that Republicans are not Americans, including 1 million chil- CBO also stated in the letter to the Chair- waging their budget wars on the poor. The dren. Net farm income will decline by man that the estimated deficit reduction budget bills racing through Congress embody $9 billion over the next 7 years. And for would likely reduce federal interest costs a gargantuan $1.1 trillion in spending cuts what, Mr. President? Once again, for and increase revenues by an amount similar over the next seven years, according to the to the fiscal dividend that CBO discussed in the almighty tax breaks for the nonpartisan Congressional Budget Office. its August report, The Economic and Budget wealthy. Out of this sum, the Center on Budget and Outlook: An Update. If deficit reduction in The evidence clearly keeps mount- Policy Priorities, a liberal group, estimates each year were lower by the amount of the ing. It is compelling. It is heart- that welfare, Medicaid, food stamps, housing estimated Medicare savings (and the associ- wrenching. This reconciliation bill is and other programs for the poor are being ated debt service), the fiscal dividend would cut by 37 to 47 percent. That is far more than wrong for our great Nation. For the likely be lower than the estimated CBO pub- seems fair given that only 21 percent of the good of our Nation, it should be de- lished in August. Federal budget is spent on the poor. feated. At a time when we should be If you wish further details on this projec- formulating a balanced budget that tion, we will be pleased to provide them. The Another way of looking at this is to see unites America and unites its people, staff contact is Jim Horney, who can be how the Republicans are approaching the reached at 226–2880. two biggest health care programs in the this one only seeks to divide us. country. Medicare is for everyone and Medic- We know that this reconciliation bill Sincerely, JUNE E. O’NEILL. aid is for the poor. Both have been growing will be vetoed by the President. Those out of control and have to be reined in. But of us who reject the extremism of the cost estimates of the Congressional Budget EXHIBIT 2 day, both Republicans and Democrats, Office show that Medicare is being kept by should be looking beyond this doomed [From the New York Times, Oct. 22, 1995] Republican legislation at a 6.4 percent reconciliation bill. We should be look- CLASS CONFLICT IN WASHINGTON growth rate in the next several years and ing to a workable alternative, a com- How touching it was for House Speaker Medicaid is being kept as a 4 percent growth promise. We should be looking toward Newt Gingrich to appeal for brotherly love rate. There is no way to see this except as a deliberate effort to inflict greater hardship building on the structures and values at the end of the titanic debate over Medi- care last week. ‘‘We want no class warfare,’’ on those delivering health care to the poor. of our great Nation, not tearing them he declared. ‘‘We want no conflict between The Republican Congressional handiwork down. generations.’’ Even by Mr. Gingrich’s stand- of the last week provides a reminder of a I have offered before, and I offer ards, this was a remarkable statement. The grim truth. It is much easier to destroy again now, to my Republican col- Republicans are rushing through Congress something than it is to create it. Reform of leagues: Come, let us reason together the greatest attempt in modern history to many of these programs is surely in order. S 15602 CONGRESSIONAL RECORD — SENATE October 25, 1995 But reform is certain to be undermined if it cide to join some institutions that will That is what this debate is about. Do is coupled with a reactionary redistribution deliver services differently, and they we want to pay our debts, or do we of government resources. may save money. As a matter of fact, want our children and grandchildren to In the coming weeks and months, the House and Senate will be struggling to rec- they may find in the next 2 or 3 years pay for the Government we want to oncile their differences and put them in one that they get more care and better care give to people that we cannot afford? massive piece of legislation, possibly attach- than under the Medicare Program we To put it another way, a modern law- ing it to a measure keeping the United have today. yer and thoughtful person on Ameri- States out of default, Mr. Clinton must not Let me dispose of two items. The dis- ca’s Constitution, Laurence Tribe, be rattled by the threat. If he stands firm, tinguished Senator from Nebraska says philosophically a liberal lawyer from the Republicans will be forced to scale back we are doing all these things to the Harvard, said: their assault and confront the reality that a poor people of the country. I assume he huge and regressive tax cut is inappropriate is suggesting that we are cutting food Given the centrality in our revolutionary as a matter of social equity and fiscal com- stamps, child nutrition, AFDC, and origins of the precept that there should be no mon sense. taxation without representation, it seems es- that he really means they are being Mr. DOMENICI addressed the Chair. pecially fitting in principle that we seek The PRESIDING OFFICER. The Sen- cut. somehow to tie our hands so we cannot spend I want to insert in the RECORD just ator from New Mexico. our children’s legacy. one simple chart. Food stamps, AFDC, Mr. DOMENICI. Mr. President, under Now, we are bent today and tomor- the unanimous-consent agreement, we child care, child nutrition, SSI, Medic- aid, and EITC. In the year 1996, we will row on this floor to decide what kind of have almost 1 hour on this side? legacy we are going to leave our chil- The PRESIDING OFFICER. Fifty- spend $195 billion on those programs. The next year, $202 billion; the next dren—a legacy of debt, of diminished nine minutes. standard of living, a legacy which says Mr. DOMENICI. I yield myself 15 year, $211 billion; the next year, $221 billion; the following year, $235 billion. to them, ‘‘We want you to work per- minutes, and then I am going to excuse haps 30 or 40 percent of your working myself for a half hour or so and see In summary, by the year 2002, these programs, which today are at $195 bil- lives to pay our bills,’’ for they will what we can negotiate with the Demo- have to do that. It is estimated, Mr. crats in terms of a more orderly proc- lion, will be $253 billion. Now, that is not contending anything. It is merely President, that every child born today ess than confronts us today. will spend at least $100,000 in new in- Mr. President, to all those interested stating the facts of this reconciliation bill, as found by the Congressional come tax to pay just the interest on in today’s debate, let me suggest the the national debt. What kind of legacy other side, including my good friend, Budget Office. How about hearings? Just one little is that? Is that a legacy that should Senator EXON, plays very loose with permit us to hide from reality and to words like ‘‘truth’’ and ‘‘right.’’ As a statement about hearings. The last time the Democrats controlled this say to our seniors and our young people matter of fact, before this debate is fin- and our veterans and our students— ished, I believe most of the contentions body, they did the President’s bidding. I believe some of them are sorry they every American—‘‘You do not have to about the poor and about the rich will worry about it, we are going to leave be dispelled and be disposed of. I think did because, of late, he has suggested they had been duped. He did not want everything alone. Whatever you are the Joint Committee on Taxation will getting from your Government, you acknowledge before this day is out that all those taxes you all voted for—only $270 billion, the largest tax increase in can keep getting.’’ The legacy for that their estimates of the tax bill were kind of leadership is a bleak future for wrong and based on erroneous assump- history. He is suggesting that some- body made him do it. As an aside, I the greatest Nation on Earth—$4.7 tril- tions. I believe we will prove that this lion in debt, and rising at the rate of is a fair budget. want to say to the Democrats in this institution that that is not only bunk, $420 million a day; $420 million a day, Frankly, for those who think only of just tick it off, tick it off. We will be 10 days and of the next election, obvi- he actually asked for $360 billion; you reduced it to $270 billion, because he here for 2 days, so that is $420 million ously they can come up with some- times two while we decide a Repub- thing much easier. But we are not talk- had the Btu tax in there. Mr. MOYNIHAN. Against my better lican proposal that says we have to ing about 10 days and the next election; stop it. we are talking about 10 years, we are judgment. We reduced it against my talking about 50 years, and we are better judgment. Now, before you pass judgment, fel- talking about our children and grand- Mr. DOMENICI. Senator MOYNIHAN low Senators and fellow Americans, children. wanted to keep it higher. This is the about the bill and the summaries that Anybody who does not want to do chronology for the budget process. will be given from the other side, hear that and wants to just say to America, When they were in control, the number from those who put the package to- ‘‘Don’t worry about it, seniors, don’t of hearings held by the then Democrat gether and put the programs together worry about it; we have amendments Budget Committee was 7; the number on our side. Somewhere you can pass that will leave everything status quo,’’ we held was 22. The number of wit- judgment upon whether we are being just listen. That is how America will nesses who offered testimony in the fair or unfair. I believe you will come fall. That is how America’s money will Senate Budget Committee, throughout down on the side of saying that this is become worthless. That is how interest their hearings, was 10; we had 110. The fair to our children and to our chil- rates will skyrocket. That is how our number of days the Budget Committee dren’s future, and everybody has to be standard of living, which is already in spent in markup, they had 3; we had 4, part of the change that will bring that jeopardy for a lot of things, will come giving them more opportunity to ex- into fruition a couple of nights from falling and tumbling down. Because if press themselves. The number of days now. we do not tell the truth about the fact spent in conference, they had 6; we had I must say to the President of the that we are incurring debt at such an 18. We make no apologies with ref- United States that veto and veto outrageous amount, we are saying we erence to hearings. We had plenty of threats, as you might want to issue are talking about only 10 days or 6 hearings and the Budget Committee set them day by day, do not get you a bal- months, do not worry about 10 years, the targets. anced budget; nor does it get you close do not worry about the future, worry Mr. President, I want to suggest, by to eliminating a legacy for our chil- about politics. using just two quotes, what this issue dren and grandchildren of servitude, or I believe when we are finished and is about. Thomas Jefferson said: perhaps a partial servitude of that next when the President of the United The question of whether one generation generation to ours, for they will work States finally agrees to a real budget, has the right to bind another by the deficit to pay our bills. Mr. President, is that the seniors are going to say, ‘‘What was it imposes is a question of such consequence the kind of leader you want to be? as to place it among the fundamental prin- this argument all about?’’ Medicare ciples of government. We should consider Democrats on the other side, is that will be intact. Seniors will be taken ourselves unauthorized to saddle posterity what you want to be? You are going to care of across the land and, yes, they with our debts and are morally bound to pay bring before us, one at a time, amend- may be even surprised. They may de- them ourselves. ments to strike pieces of this, and each October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15603 one is going to sound neat, sound wor- consent the Chair recognize the Sen- cuts that I have ever heard or I ever risome. I hope every single one of them ator from New York, and the remain- thought I would hear in my life. is defeated, and I hope we take this ing time under my discretion is allo- Pinocchio’s nose would be a world- budget resolution to conference and cated to the Senator from New York. record length if he had to listen to the then to the President of the United The PRESIDING OFFICER. Without discussions that we have had put on. States and let us see what he does; let objection, it is so ordered. Let me give an example. I have heard us see what he offers. Mr. President, we Mr. DOMENICI. Mr. President, one of tax credits that are not yet imple- extend that to you now, and we say it observation, please and then I yield the mented as being called increases in is going to happen. So get ready, Mr. time that Senator BROWN desires, with taxes. That is ludicrous. I have heard President. Be prepared for what you the Senator from Michigan controlling welfare programs that are being con- are going to do when we give you this our time after that. trolled in the rate they spend money as package. Fellow Democrats, we under- Mr. President, I forgot to mention on being increases in taxes. stand you differ with us. We will try the tax cuts, obviously the President Mr. President, an increase in spend- our best to be truthful and to point out thinks the taxes were raised too much ing is an increase in spending. A cut in where you are wrong. In many of the last year under his proposal. One way spending is a cut in spending. Frankly, statements made to the American peo- of looking at it, we are getting set to the American people have the good ple you are wrong on the facts. We will right that wrong which the President judgment to see through this kind of try to get them before you. complained about in Houston, about rhetoric. which he was beginning to say he Having said that, I assume I have What we need are real valid esti- should not be blamed for that tax in- used 15 minutes, is that correct? mates. What we need is a solid budget crease. The PRESIDING OFFICER. The Sen- that gets us where we want to go. ator has used 11 minutes. We will accommodate and reduce Mr. DOMENICI. I do not want to re- some taxes so that maybe he can sup- Mr. President, there is only one serve any of my time. port us on that. budget that is considered here today Mr. KENNEDY. May I have 15 sec- I yield to Senator BROWN. that will do that. There is only one onds for a question? Mr. BROWN. Mr. President, I rise for budget that has been certified by the Mr. DOMENICI. Sure. just a short comment because I think Congressional Budget Office as meeting Mr. KENNEDY. I am wondering when it is important for the American people those targets. There is only one alter- the Senator is going to explain the jus- to keep this perspective in mind. native that brings us to a real balanced tification for the tax cuts. I have been This package has been attacked by budget. That is the budget before us. on the floor listening to the justifica- those opposed to it. That is the privi- This is the only game in town. tion that the Senator has given, with- lege and indeed the obligation of Mem- Are there critics? Of course there are out a single word about what the jus- bers who find this unacceptable. No one critics. Are there people who simply tification is in this bill for the tax cuts should be fooled as to the contents of cannot live with limiting growth of for the wealthiest individuals. I have this package. This package ensures Federal spending? Of course there are. not heard a discussion about the impli- that Federal spending goes up 3 percent Everyone knows this country does cations of that in those terms. a year instead of 5 or 6 percent. not have a future if we do not do the Mr. DOMENICI. You can rest assured Now, some Members find that unac- kind of things that are in this budget. that we will answer that. Many issues ceptable, some find that cruel and in- The question is whether or not we have been raised, and I am trying to humane. As a matter of fact, the de- will act for blue smoke and mirrors, for give an overview. That will be an- scription that was just given by the invalid assumptions that the President swered a number of times. Democratic Budget Committee leader suggests, or whether we will opt for the Mr. MOYNIHAN. Could it be that you compared the package to ‘‘ ‘Rosemary’s real thing. delegated that joyous task to the Baby’—a look-alike dream child.’’ Mr. President, this is the real thing. chairman of the Finance Committee? Mr. President, indeed, there are some It offers a future to Americans. I retain Mr. DOMENICI. My friend knows Americans, particularly in Congress, the balance of our time. that each committee does their work. particularly on the spending side, who Mr. MOYNIHAN. Mr. President, we He is in charge of that work. I will not think that increasing spending only 3 are awaiting the arrival of the distin- take a back seat to anybody on ex- percent a year is the worst thing that guished chairman of the Finance Com- plaining the tax bill. I do not know it has ever happened in Western civiliza- mittee who will set forth the proposals in detail, but I think it is a very good tion. We will hear a lot about that in of the tax cut in this measure. debate. tax bill. When the American people un- I say to my friend from Colorado that The American people ought to keep derstand where the tax cuts really go, it might surprise him, there are those in mind what this is. This is a plan to they are going to find out that what we on this side of the aisle who see the increase spending 3 percent a year in- said we would do was get a balanced debt crisis in the same crisis terms stead of 6 percent a year. The dif- budget, and we did; and then the eco- that he does and have a feeling that we ference is our future. By controlling nomic dividend that comes from that, know when it arose in the 1980’s, and it the increases to a moderate rate we are we would use to give American people was not from this side of the aisle—and able to offer a future to our children back some tax dollars so they could we want to get hold of it. spend it themselves. We think the tax and our grandchildren. We are able to We do not think you can solve a defi- writing committee has come very close focus on the deficit. Mr. President, cit problem by cutting taxes. to doing that in a way that almost all without doing that we consume their of that money will go to middle-income future with debt, deficits, and eco- Mr. BROWN. Mr. President, I simply Americans, making $110,000 and under. nomic stagnation. observe—and I greatly respect the dis- We will show that unequivocally, and I Mr. President, I simply want to make tinguished Senator from New York, believe the Joint Tax Committee will one other point that I think is relevant both his intellect and his integrity— be saying that, too. to this debate and very important. I from this Member’s viewpoint, I be- Mr. EXON addressed the Chair. hope the American people who listen to lieve an objective review of the pro- The PRESIDING OFFICER. The Sen- this, who listen to the rhetoric that grams that have risen in increased ator from Nebraska [Mr. EXON] is rec- has been made about this budget plan, spending would indicate that the pro- ognized. will understand that we are not talking grams that are in question were not Mr. EXON. Mr. President, point of in- about cuts in most programs. What we adopted during the 1980’s. quiry; how much time does the Senator are talking about is slowing the rate of I think any objective review of the from Nebraska have under the unani- increase. question of the deficit will indicate mous-consent agreement in place now? In the discussion of tax cuts, let me that. The PRESIDING OFFICER. The Sen- simply mention that I hope Members Second, I observe that there were ator from Nebraska has 14 minutes. will be on guard, or Americans will be valiant efforts made during the 1980’s, Mr. EXON. Mr. President, upon his on guard, as they listen. I have heard a few by this Member. I am not sure I seeking recognition, I ask unanimous the most incredible debate of the tax describe my efforts as valiant but they S 15604 CONGRESSIONAL RECORD — SENATE October 25, 1995 were persistent and they were consist- plished since I have been a member of People have been waiting for the cor- ently rejected by Democratic majori- the Budget Committee, and I am glad rect incentive and opportunity to sell ties in the House of Representatives we are able to do that. because they naturally do not want to where I served. Some people question whether or not pay a high tax on inflation because At least from this Member’s point of we ought to decrease taxes as well as that is not taxation, that is view, if you want to talk about the his- balance the budget. There are people confiscation. You are going to see for- tory of the deficit, you look at when that might say we ought to decrease merly less productive property change those programs were passed and who taxes and forget about balancing the hands at record rates. This is going to put them on automatic pilot. budget; there are other people that be very beneficial for families passing Second, I think you cannot but look would say we might balance the budget on to younger generations the fruits of at the record and recognize that the and forget about decreasing taxes. their labors and their investment in Democratic-controlled Congress, at To me, it is a question of priority. that business or that farm. Of course, least in the House of Representatives The priority is to balance the budget. when property is tied up in the Tax during the 1980’s, consistently opposed And if we can have tax cuts, and they Code, that means our farm population efforts to control that spending and are paid for, and the nonpartisan budg- is going to continue to get older, the limit the increase in spending. et office will certify that we have a average farmer in my State is 62 years I retain the balance of our time. balanced budget, then it seems to me old. Young people are not going into Mr. KENNEDY. Mr. President, where we ought to give the people back some farming because they cannot. Only 3 is the current time being charged? of the money that the President took percent of the farmers in my State are The PRESIDING OFFICER. The time in OBRA ’93. He said that he under- under 30 years of age. We have lost a is under the control of the Senator stands that he raised taxes too much 2 whole generation of farmers because of from Michigan and the Senator from years ago. This will not give back all bad tax policy and depression in agri- New York. the money obtained when the Presi- culture in the 1980’s. This will help Mr. KENNEDY. Mr. President, who is dent raised taxes then, but it will go a that. being charged with the current time? long way toward correcting that in- The same for the changes we are The PRESIDING OFFICER. If nei- equity. ther side yields time the time is dis- So, in a very historic way—at least making in the estate tax; especially it tributed equally between the two sides. historic as far as the last 15 years is is going to help family farmers and Mr. KENNEDY. Could we have the at- concerned—we have a chance today and small business people. Family-owned tention of the Senator from New York? tomorrow, during this 20 hours of de- businesses and farms do not have to be As I understand, the time is being bate, to show the people that the prom- sold anymore in order to just pay the charged against us at the present time. ises of the last election are delivered, Federal taxes. The estate tax system I just had a question for the Senator those are the promises of a balanced will now serve small businesses instead from Colorado for 15 seconds. budget and of a paid-for tax decrease. of consume them. The PRESIDING OFFICER. Time is It seems to me that a balanced budget While we are fixing the business of running equally at this time. will go far in making our children’s taxing small business, this bill also Mr. MOYNIHAN. Mr. President, I and grandchildren’s futures much ratchets up the unified credit exemp- yield 15 seconds to the Senator from brighter and more hopeful. tion equivalent all the way from Massachusetts. I think this is a very, very good na- $600,000 to $750,000. It has been at Mr. KENNEDY. Could the Senator tional program. It is good for all 50 $600,000 since 1980 and, of course, it has from Colorado, regarding his review of States. But I can look at it and say it been depleted considerably by the in- the period of the 1980’s—does the Sen- is good for my State as well as it is for flation of the last 15 years. The legisla- ator understand every year what was the country as a whole. I look at the tive move from $600,000 toward $700,000 actually appropriated by the Congress, $500-per-child tax credit. This credit recognizes both the fact of inflation with the exception of 1 year, was less will bring approximately $300 million and the fact that every asset in Iowa is than what was actually requested by back into the pockets of Iowans, the not a member of a qualified family- President Reagan during that period of pockets of middle-class working fami- owned business. time? lies in my State. For my colleagues who are going to Mr. BROWN. Let me say to the Sen- For the first time since 1986, students rant and rave about an estate tax ex- ator, at least from this Member’s view- in my State, as well as those in the Na- emption helping rich people, I hope point, that the relevant facts are not tion as a whole, will be able to claim a they will take a little bit of time to un- what was appropriated in the original. tax credit for the interest on student derstand that when you are talking It was what Congress ended up spend- loans because this bill provides a credit about a family farm operation, oper- ing. for 20 percent of the qualified interest, ated just by family members who are If you look at what is totally spent up to $500 per student. providing the capital, providing the by Congress versus what they did with This legislation is not partisan. This labor, providing the management, that the congressional budget, you come up legislation is bipartisan because it is you do not provide a job on a family with a much different viewpoint. identical to the bill that I introduced farm for the same cost that you do in The fact is during that period Con- earlier this year with my distinguished industrial America, about a $50,000 in- gress continuously overspent its own colleague from Illinois, Senator vestment. For the American service in- budget; so to compare it with official MOSELEY-BRAUN. The Joint Committee dustry, you can create a job for about budget requests I think does not give on Taxation estimates that this credit $10,000 to $15,000 a year. Jobs on farms the accurate picture. will send over $1 billion to young peo- The PRESIDING OFFICER. Who ple all over the country who are just in America are created by the invest- yields time? starting out in life after college. This ment or the borrowing—and in most Mr. ABRAHAM. I yield the Senator change should especially aid young cases to get started it is borrowing—of from Iowa 10 minutes. people who plan to stay in rural Amer- hundreds of thousands of dollars in Mr. GRASSLEY. We ought to be very ica instead of having to seek high-pay- land and machinery to create one job, proud, Mr. President, of delivering in ing jobs in the cities to meet loan pay- or an income for one family. I am not this Congress on a promise that Con- ments. talking about hiring a lot of labor in gresses have made probably for the last In addition to that, for the benefit of the process. I am talking about the 15 years and maybe even longer than the country as a whole and the benefit family doing the labor. that, that we are going to balance the of people in my State, there is a capital So you have, after a life of work, one budget and that we have a nonpartisan gains tax cut that will reduce an indi- half million dollars invested in land Congressional Budget Office certifi- vidual’s effective capital gains tax rate and machinery to create one job and cation that we are balancing the budg- by 50 percent. In Iowa we will be able one family income. Some people in this et. to watch and see a lot of farmland and body might think small farmers are Balancing the budget is the most im- a lot of other capital assets that have rich. Maybe a lot of America will think portant goal that we have accom- been tied up begin to change hands. small farmers are rich. But, remember, October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15605 small farmers create income for one Federal Government you simply put it ferson had to say on the subject of family. It is not like the economy does into a paralyzing debt by the reduction debt. I have not met Mr. Jefferson, but in an industrial job, one income for a of revenues and simultaneously in- you can sense his presence in these pre- family with $50,000 investment and creasing spending on defense and such cincts. The Senator said what Lau- somebody else is investing it, some- matters. Indeed, that happened. We rence Tribe has said about the accumu- body else is managing it; or in a service forecast it. We tracked it. And we are lation of debt. I taught at the same job where the economy needs only here today to say that it is the case. university, and I know him well. And $10,000 or $15,000. Just a few years ago in a wonderful the legacy of debt of which the chair- We are also providing, in this bill, book ‘‘The Deficit and the Public Inter- man spoke—we are the ones appalled tax changes that are meaningful in est,’’ Joseph White, and the late re- by that legacy. We did not create it. ending the marriage penalty for non- vered Aaron Wildavsky, said: ‘‘Strife At the end of the 1970’s, at the end of itemizers. We are answering the pleas over the deficit has affected procedure the administration of President Carter, of a lot of young people everywhere as well as policy, monopolizing the the national debt was in the neighbor- who want to know why their Govern- congressional agenda, encouraging hood of $800 billion. That was at the ment is penalizing them for exchanging paralyzing and deceptive legislation end of nearly two centuries in this Re- marriage vows. like Gramm-Rudman, frustrating our public. After 15 years it is now ap- This bill says we are not going to tax public officials, and stalemating the proaching $5 trillion. That did not hap- reasonable dues to farm organizations. Government.’’ pen accidentally, and it did not happen This IRS ruling, as stupid as it is, cre- As regards deceptive legislation, Mr. as a consequence of activities on this ates a lot of problems for a lot of co- President, I have to place this present side of the aisle. operatives and nonfarm organizations proposal in that category. We are not out there. Just like the President’s tax balancing the budget. We are adding To the contrary, 2 years ago the increase last year—albeit in that in- $700 billion to the debt in the next 7 Democrats put together, in the Omni- stance it was something passed by a years. One of the ways we are doing it bus Budget Reconciliation Act of 1993, Democrat controlled Congress, and not is, while talking about the deficit, a combination of program spending some uninformed ruling by the Inter- while talking about the debt, we are cuts and ‘‘tax increases’’—I do not for- nal Revenue Service. going to cut taxes. Well, no. No, Mr. bear to use the term—of $500 billion. Finally, I would like to highlight President. I correct myself. I correct And we brought a deficit, which in that that this bill also improves and ex- myself. We are going to raise taxes on year, in fiscal 1992 was $290 billion. We pands IRA’s. We are reinstating an IRA half the population, and cut taxes on started a glidepath down to where this to which working people can make tax- the other half. fiscal year just concluded, the deficit deductible contributions. Even home- Mr. President, here is a table from will be somewhere between $160 and makers and even nonworking spouses data produced by the Joint Committee $170 billion. We cut the deficit in half. will be able to make contributions for on Taxation, which is an authoritative, In consequence of what we did, the the first time ever. There will be pen- intermittently nonpartisan, body so-called deficit premium on interest alty-free taxable withdrawals for quali- which calculates the effects of tax rates was reduced. The deficit premium fied uses. measures taken by the Committee on is simply that extra charge which lend- Everyone knows that we need to dou- Ways and Means and the Committee on ers exact when governmental deficits ble the current savings rate of 4 per- Finance. In the course of our markup, are running very high—because in the cent. Young people in my State know as we say, voting out the tax bill, I re- end the way governments typically that they will have to save for their quested that the Joint Committee give have handled their debt was through own retirements while they are financ- us the distribution of the $245 billion inflation, to wipe it out, wipe out the ing the retirements of baby boomers, tax cut, and they did, including the re- currency, and wipe out the society fre- and the IRA incentives in this bill will ductions in the earned income tax cred- quently. But it happens. It happened provide the opportunity. Expanding it which are tax increases, in my view. enough that this premium exists. The and strengthening the individual re- If you have to pay more tax, you have ‘‘deficit premium’’ being charged on in- tirement accounts is something I sup- had a tax increase. terest rates went down, and resulted in ported for many years. I am glad to see Sir, here is the data: 51 percent of a savings to the Federal Government of those efforts bear fruit, and I com- American taxpayers will have a tax in- about $100 billion more. So in total we pliment the new chairman of the Fi- crease; 49 percent will have a tax de- achieved deficit reduction of $600 bil- nance Committee, Senator ROTH, for crease. How we can do this, and then lion as a result of the 1993 legislation— getting that job done. talk about fiscal responsibility eludes passed without a single Republican The PRESIDING OFFICER. The 10 this Senator. vote. minutes of the Senator has expired. Now a second table from the Treas- What have we to show for that? First, Mr. GRASSLEY. I am going to yield ury, showing the actual distribution of let we say that the average length of the floor. I am not done, but I want to the tax cuts and tax increases across recovery for 10 postwar business cycles inform my colleagues I have spoken all the population of taxpayers, by in- has been 50 months, but the current re- I wanted to on the tax provisions. I do come. It shows a tax increase for tax- covery has now lasted 55 months and is have something I want to say on the payers with incomes of $30,000 or less. I still going. The annual rate of growth Medicare provisions, and I will get should point out that according to the in real gross domestic product has been time on that later on. analysis of the Joint Committee on 3.3 percent, more than twice what it Mr. MOYNIHAN. Mr. President, I Taxation, 51 percent of American tax- was in the previous 4 years. Unemploy- yield myself the balance of the opening payers make $30,000 or less. Once we ment has fallen to 5.6 percent, which is Democratic time. I had hoped to speak get above $30,000, then we see tax cuts very close to full employment. The an- in response to my good friend, the dis- for everyone. tinguished chairman of the Finance I am embarrassed for my friends on nual inflation rate has dropped to 2.5 Committee. He is unavoidably de- the other side of the aisle. This is a percent. tained. So I will go ahead as if in rebut- caricature. A comic Democrat might If you correct for the CPI overstate- tal. have come along and have said, ‘‘Let ment, you may have something very But first to continue the exchange I me show you what a Republican tax close to zero inflation. The New York was having with the Senator from Col- cut looks like.’’ Times this morning devotes a lead arti- orado, there are those on this side of Families with incomes above $200,000 cle in its business section to it. ‘‘Has the aisle who are deeply offended by will have a tax cut of $3,416. Families inflation finally been whipped?’’ It did the continuing deficits which have in- with incomes under $10,000 will have a not just happen. It was made to happen creasingly produced stalemate in our tax increase. That simply is unaccept- by what we did in 1993, and we do not Government. This sequence began in able. apologize for a thing. We would rather the late 1970’s, early 1980’s, and there Mr. President, the distinguished state we have shown the way—shown was an idea behind it—the idea was chairman of the Budget Committee what you can do, if you have the cour- that, if you wanted to paralyze the earlier spoke about what Thomas Jef- age to govern. There are things in this S 15606 CONGRESSIONAL RECORD — SENATE October 25, 1995 present proposal from the majority the attention of my friends on the people in the income categories I have with which I would disagree. There are other side of the aisle. It is not too late already referenced, primarily people things with which I would not disagree to do the right thing. making under $75,000 a year and to a in the least. I do not object in the least Mr. ABRAHAM addressed the Chair. large extent, approximately 85 percent to the statement of the Senator from The PRESIDING OFFICER. The Sen- of this tax cut to people making less Colorado that a reduction in the rate of ator from Michigan. than $100,000 a year. It is a middle-class increase is not a cut. Mr. ABRAHAM. Could I inquire as to tax cut. However, to cut taxes is an act of un- how much time is remaining? That is why yesterday, in describing forgiven irresponsibility. I did not say The PRESIDING OFFICER. Thirty the reconciliation bill, the Washington ‘‘unforgivable.’’ I said the consequences minutes of the 1 hour remains. Post in referencing the tax sections de- will be unforgiving at this moment in Mr. ABRAHAM. Mr. President, I will scribed it as family friendly. It is fam- our business cycle expansion. We do take 2 minutes on our side and then I ily friendly to middle-class families, to not need to do this and, Mr. President, will yield the remainder of our time to people who have felt the squeeze for so we would not be doing it save for the the Senator from Delaware. I use my 2 many years. That is why it is part of House of Representatives. minutes very briefly to be responsive this legislation and why we are sup- In our hearings on this subject, in the to some of the comments that have porting it. Finance Committee, one Republican been made here already about the na- Mr. President, at this time I yield Senator after another said no, we have ture of the tax cut. I am sure the Sen- the remainder of our side’s time to the to bring the budget into balance. This ator from Delaware, the chairman of Senator from Delaware, the chairman is no time to cut taxes. the Finance Committee, will elaborate of the Finance Committee. We do not have to stimulate the in more detail. But I was very con- f economy. The economy is in its 55th cerned recently when I began to see month of expansion; we are practically this chart appear and some of the com- ORDER FOR MORNING BUSINESS at full employment; inflation has prac- ments related to it that suggested Mr. ROTH. Mr. President, I ask unan- tically disappeared. Business invest- somehow the tax cut that is being pro- imous consent there now be a period ment is at the highest rate in 30 posed as part of this reconciliation bill for the transaction of routine morning years—investment savings is at the would disproportionately fall on the business with Senators permitted to highest rate in 30 years. This is not the shoulders of the less affluent and tre- speak for up to 10 minutes each. time to get into an inflationary stimu- mendously benefit the wealthiest The PRESIDING OFFICER. Is there lus. We know enough about our econ- among us which is the frequently used objection? Without objection, it is so omy to know that. term that we hear. ordered. One Senator after another from the So I said to myself, gee, that does not Mr. MOYNIHAN addressed the Chair. other side of the aisle said no, cer- sound like the tax bill the Finance Mr. ROTH. Mr. President, I would tainly not; we would never pass a $245 Committee passed. And indeed, I then like to make a further unanimous-con- billion tax cut. And then we learned began looking into the tax bill the Fi- sent request to finish my statement as that—and I do not mean in any way to nance Committee passed, and accord- in morning business for up to 10 min- seem to ridicule, but it turns out that ing to the Joint Tax Committee cal- utes, and have my remarks appear in culations, in the first year of this tax the Contract With America written in the RECORD as uninterrupted. the other body required this tax cut. bill 90 percent of the tax cuts will go to The PRESIDING OFFICER. Without And so here it is today. But it is not a people whose earnings are below objection, it is so ordered. tax cut for all. It is a tax cut for half $100,000 a year. Over three-quarters or Mr. ROTH. I would say, morning the population and a tax increase for 77 percent of the proposal’s tax cuts business will be until 1:15. the other half. That surely is some- will go to those making under $75,000 in The PRESIDING OFFICER. Is there thing we would not wish to do in ordi- the first year. Less than 1 percent of objection? Without objection, it is so nary circumstances. the proposal’s tax cuts will go to those ordered. Has the prospect of a Presidential making over $200,000 in the first year. The Senator from Delaware. election brought us to this? I hope not, Over four-fifths, 84 percent, of the pro- Mr. President. I hope we would not be posal’s tax cuts will go to those mak- f doing things we are doing in the proc- ing under $100,000 in the first 5 years; 70 PRIVILEGE OF THE FLOOR ess of cutting, cutting Medicare as percent of the proposal’s tax cuts will much as we do, cutting Medicaid as go to those making under $75,000 in the Mr. ROTH. Mr. President, I ask unan- much as we do. first 5 years, and so on and so on. imous consent that Mr. Andrew Mr. President, before this decade is Indeed, charts and statistics can al- Eschtruth, a detailee to the Senate Fi- out, we are going to have a crisis in our ways yield certain kinds of inferences, nance Committee from GAO, be grant- teaching hospitals and our medical but those are the actual numbers that ed Senate floor privileges for the dura- schools because of the measures in this the Joint Tax Committee produced tion of the Senate’s consideration of bill. We currently have in Medicare a when it evaluated this plan. the budget reconciliation legislation. provision to provide medical schools I said maybe there has to be a dis- The PRESIDING OFFICER (Mr. and teaching hospitals with some extra crepancy here. What could it be? Let ASHCROFT). Without objection, it is so support. We currently have a provision me look at the individual provisions of ordered. on disproportionate share which in ef- this tax cut and see. In order to fulfill f fect compensates those hospitals, in- the numbers we have been hearing, cluding teaching hospitals, that treat they must all be tax cuts that benefit A MOMENTOUS TIME large proportions of the uninsured. the wealthiest people in America. So I Mr. ROTH. Mr. President, this is cer- They are already in a precarious finan- looked and I found a $500 per child tax tainly a momentous time. Change is cial position, and the bill before us will credit; $141 billion of the total tax cut the order of the day. And it is a time to exacerbate their problems. They will is the child tax credit, and it is phased renounce old and unworkable programs be in genuine jeopardy if this bill be- out for people beginning at family in- and philosophies and adopt those that comes law. At the greatest moment of comes of $110,000. will move America forward, those that medical science for this country’s in- The PRESIDING OFFICER. The Sen- will offer prosperity, security, oppor- stitutions, we are decimating their fi- ator’s 2 minutes have expired. tunity, and growth to our families and nances in order to give a tax cut to Mr. ABRAHAM. I would yield myself to our communities. people with incomes over $200,000. 1 additional minute. As Henry George once said, ‘‘The Sir, I believe my time has expired. In addition, we have an adoption sailor who raises the same sail regard- The PRESIDING OFFICER. The Sen- credit, marriage penalty relief, student less of changes in the direction of the ator’s time has expired. loan interest deduction, individual re- wind will never reach his port.’’ Mr. MOYNIHAN. I thank the Chair tirement accounts, and countless other In this Congress, we have not only for its courtesy, and I hope I will have provisions in the bill that are aimed at trimmed the sails but we have set a October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15607 bold new course for the future. For the as we turn our attention to saving and Fund (Part B), while in balance on an annual first time in more than a decade, we strengthening the Medicare system, to- basis, shows a rate of growth of costs which are serious about balancing the budget, ward curbing runaway spending and to- is clearly unsustainable. Moreover, this fund and we have a plan to do it. For the ward giving Americans what they most is projected to be 75 percent or more financed by general revenues, so that given the gen- first time in 50 years, we have changed need now after a decade of tax in- eral budget deficit problem, it is a major the dynamics of the welfare State, cre- creases: a real, workable, economy-ex- contributor to the larger fiscal problems of ating incentives that encourage work panding tax cut. the Nation. The Medicare program is clearly and strong families, incentives that Frankly, Mr. President, there should unsustainable in its present form. be cooperation. President Clinton him- balance rights with responsibilities. Mr. President, as I said, this is from self has been a most certain voice in At last, we have changed the ques- the administration’s own trustees. tions concerning Government. No expressing the importance of making real and lasting changes. As I said, he There has been no question about the longer do we ask: ‘‘How big can we absolute need to restore the integrity make it?’’ No longer do we ask: ‘‘How has admitted his tax increases were too high. He knows spending is out of con- of the Medicare Program, to save, to can we control the States? How can we strengthen it, so that Government can concentrate more power in Washing- trol. He has proposed his own child credit, a credit of up to $800 per child. meet its contract with the American ton?’’ people. Similarly, there has been no These are not the questions anymore. He has stated that it is possible to bal- ance the budget in 7 years. And almost question concerning the need to con- Rather, the new questions are: ‘‘What trol runaway Government spending. is Government’s proper role? How can 2 years ago, he took a firm stand on Medicare, saying that—and I quote Government has grown accustomed to we make it more cost-effective and ef- living beyond its means. ficient? And what do we need to do to —‘‘Today * * * Medicare [is] going up This must change, and reform efforts create an environment of security for three times the rate of inflation. We must be real. They must maintain the those who legitimately need Govern- propose to let it go up at two times the agreements Washington has made with ment assistance but an environment rate of inflation. This is not a Medicare the American people. They must see for economic growth and opportunity * * * cut.’’ End of the President’s that the needy are cared for. They for the valiant taxpayers who provide quote. must keep the contract that exists be- that assistance?’’ And for the first time President Clinton understands what tween the Government and our retired in my memory, we are returning power needs to be done. After all, he was the constituents concerning Medicare. back to where it belongs, back to the one who ran on the platform of bring- They must ensure the integrity of the States. ing change to Washington. Now, he program for a sufficient period of time This is what we were sent here to do. cannot have it both ways. We either to allow us to chart the distant future It is the message we heard last Novem- change the old and failed ways of doing of that program so it can absorb the ber. And the job is getting done. At business, or we keep business as usual. baby-boom generation. home we have energetic Governors Well, Mr. President, I vote for with innovative plans, many with suc- change. I encourage my colleagues on And in doing all this, our efforts at cess stories. We have friends, neigh- the other side of the aisle to join us in reform must also create conditions, an bors, and constituents who want, once making change possible, rather than environment, if you will, where our again, to feel like they have a powerful retreating into gridlock and defending economy can expand and the harvest voice in the system. These are men and 30-year-old policies that have spent for coming generations can be planted. women who over the years have come some $3 trillion to have more children The reconciliation package we present to build this franchise as their Govern- living below the poverty line today today accomplishes just that. It keeps ment has moved further and further than when those programs began. This our promise to the American people. away. is not progress. Our proposal does not engender de- According to economist Walter Wil- We are in the process of putting the pendency on Government like the liams, the taxpayers’ money that power back where it belongs, in the failed policies of the past. It does not Washington has spent on these pro- States, where our friends, our neigh- perpetuate the negative incentive that grams to cure social ills over the last bors, our constituents have a stronger feed the welfare bureaucracy and those three decades could have bought the voice and are more active. who maintain their political power As I watched this 104th Congress entire assets of the Fortune 500 compa- base by pandering to that bureaucracy. move forward, I have thought on many nies and virtually all the U.S. farm- Of course, our policies address the occasions that I can think of no other land. But today the problems not only needs of citizens who cannot care for Congress in which I have been more remain, they are even worse. The fact themselves, but, more importantly, honored to call myself a Member than is, we cannot afford business as usual. they create conditions for upward mo- this one. And I am grateful for my col- Americans do not deserve business as bility, conditions for economic oppor- leagues, colleagues on both sides of the usual, especially those Americans who tunity, incentives for self-reliance. And aisle, who have come to agree that the in the last 30 years have fallen prey to I cannot express how important it is old way just is not good enough, not for the pathologies that attend poverty: that we create these kinds of condi- America, not for Americans. dependency, crime, unwed mothers, tions. In many ways there has been an im- broken families, decaying neighbor- At the moment our economy is not measurable amount of cooperation in hoods. growing as strongly as it should be Certainly we must keep a safety net. this Congress, and it should not be growing, and perhaps this is why Presi- None here argues that we should not. overlooked. In other areas I would like dent Clinton now believes his record- But we must change the system. setting tax increases were a mistake. to see more. But I believe a part of the I believe that except for politics, At the moment, there is little incen- cooperation that is apparent, of course, President Clinton and many of his al- tive for Americans to save and invest. is borne by the fact that we all know lies in Congress would be with us on Perhaps this is why today the average what needs to be done. Republican and most of the proposals we have included 50-year-old is so ill-prepared for retire- Democrat, we all realize the challenges in the reconciliation package, even on ment and why, among the industrial that must be addressed. our historic efforts to save and to nations of the world, we lag behind Even President Clinton, from time to strengthen Medicare. time, has indicated his insight and un- Remember, it was the President’s even our competitors in our rate of per- derstanding, saying that his record-set- own Medicare trustee report that so sonal savings. Incidentally, this, ac- ting tax increase was a mistake and fi- vividly outlined the problems we are cording to Federal Chairman Alan nally agreeing with House and Senate attacking today. According to that re- Greenspan, is one of the most pressing Republicans that the budget could be port: problems confronting our Nation eco- nomically. balanced in 7 years. . . . the Hospital Insurance Trust Fund With the reconciliation bill we bring (Part A) continues to be severely out of fi- At the moment, the Medicare Pro- to the floor today, we again need this nancial balance and is projected to be ex- gram stares into the abyss of bank- cooperation, perhaps more than ever, hausted in about seven years. The SMI Trust ruptcy, and this is why many of our S 15608 CONGRESSIONAL RECORD — SENATE October 25, 1995 seniors are living with fear and uncer- benefits for 15 years. Today, the aver- ment, practices that can strengthen tainty. But not just our seniors; fear age 65-year-old will receive benefits for the economy, create an environment and uncertainty grip their children and 18 years. for employment growth and an envi- grandchildren because they know that, This is where we are now, Mr. Presi- ronment where Americans are encour- left unchecked, entitlement spending is dent. Looking into the future gives us aged to work, save and invest. And growing so fast that, along with inter- even greater reason to make the nec- achieving these conditions should be est on the national debt, it will essary changes we are proposing. The our primary responsibility. consume almost all Federal revenues chart, which we will bring out a little Towards this end, we must see our in the year 2010, just 15 short years later, demonstrates just how important proposal in this budget reconciliation from now. Left unchecked, by 2030, it is that we begin now to make nec- process in its entirety, for its overall Federal revenues will not even cover essary changes in entitlement pro- balance and how all components work entitlement spending alone. grams. together to benefit Americans at all Though we live in a Nation of infinite Today, there are less than 40 million ages and in all income groups. To sin- possibilities, we are, of course, a land Americans who qualify to receive Med- gle out one reform in our proposal, of finite resources. At the moment, the icare. By the year 2010, the number will without looking at the others, is to do Federal debt is approaching $4.9 tril- be approaching 50 million. By 2020, it a great disservice to what this rec- lion, deficit spending is well over $150 will be over 60 million. While these onciliation package offers. billion a year, and the fact is, Medi- numbers are increasing, there will be It is balanced, it is workable, and it care, Medicaid, and earned income tax fewer workers to support each retiree, is long, long overdue. It changes busi- credit are some of the fastest growing and while we have almost four workers ness as usual in Washington. It answers entitlement programs on the books. per retiree today, we will have about the clarion call from our constituents Strengthening and restoring the integ- two workers per retiree by the year to make the kind of changes that so rity of these programs will not only 2030. obviously need to be made. benefit those who should appropriately So, Mr. President, we must change I remember that an astute political receive them, but it will also help us the program. We cannot move into the adviser once warned his boss that there balance the budget, and this, Mr. Presi- future with blueprints that were de- is nothing more difficult to take in dent, is what the vast majority of signed for the past. Medicare and Med- hand, more perilous to conduct or more Americans not only want but demand. icaid have been the most significant uncertain than to take the lead in the A balanced budget is necessary for contributors to entitlement growth in introduction of a new order of thing. I economic security. A balanced budget recent years. It is projected that these believe, with some of the inflammatory would increase job opportunity. Some programs will cripple as a share of the rhetoric we have heard surrounding forecast that over 6 million jobs would economy within the next 35 years. this important debate, there is good be created if the budget were balanced. Thus, they are unsustainable. reason to say that this adviser knew In 1994, Medicare spending was $160 Interest rates would be lower. They what he was talking about. would fall by almost 2 percent, some billion. Over the past decade, Medicare Change is difficult, but change is say even higher. And Americans every- grew by about 10 percent per year, and more necessary now than ever before. where would enjoy a higher standard of CBO projects similar growth over the Where some may feel they lose in one living. There would be a reduced bur- next decade. Because of this rapid aspect while single-mindedly absorbing den of debt on our children and our growth, the Medicare Hospital Insur- one component of these changes, they grandchildren, and people would be ance Trust Fund, part A, is projected are sure to gain in others. What we able to keep more of their hard-earned to go bankrupt in 2002. seek to achieve here is balance, bal- money rather than sending it to Wash- As the baby-boom generation retires, ance that improves conditions and op- ington. Medicare costs will continue to soar. portunities for all. It is not the voices To balance the budget, we must con- The Medicare trustees project that be- of individual special interest groups trol the growth of entitlements. I am tween 1995 and 2020, Medicare will grow that govern our actions, but the collec- not suggesting these programs be abol- from 2.6 percent of the economy to 6 tive voice of America. And we under- ished or even cut. We simply need to percent, an increase of over 200 per- stand one fundamental truth about re- get them back within our budget, with- cent. Likewise, Medicaid is out of con- form—a truth stated eloquently by in our ability to pay for them. It is trol. This program alone is scheduled Vaclav Havel: easy to see how they got out of control. to grow at an annual rate of 10.4 per- Simply put, these programs escape cent between fiscal year 1995 and 2002, The more half-measures we take, and the the discipline of the annual budget devouring both Federal and State longer they drag on, the greater the sac- process. Increased entitlement spend- budgets. Already, Medicaid consumes rifices will be, the longer they will have to be made, and the more pointless sacrifices ing occurs automatically, covering any about 20 percent of State budgets, ex- will have to be piled on top of those that are individual who meets eligibility cri- ploding from $15 billion in 1980 to a pro- unavoidable. teria. These increases are heavily in- jected $180 billion in 2002. We must be resolved; we must have fluenced by the rapid rise in health These are serious concerns, and keep- confidence in the balance that our pro- care costs, the growing number of ing in mind the demographics that I gram offers. I have that confidence—as beneficiaries and real benefit expan- cited earlier, it is easy to see that do other Members who join me today in sion. without real change in policies and Of course, today America is aging. programs, there is no way the Federal introducing this reconciliation pack- Our population is getting older as peo- Government will meet its obligation. age. ple are living longer. This is a good There is no way that we can offer as- Quite simply, there are four compo- thing. It is indicative of progress. surance to even the next generation of nents to our program—promises we These changing demographics, how- retirees that they will have coverage made to the American people—prom- ever, must be accompanied by changing under Medicare and Medicaid. ises we are now keeping: policies and programs. Programs that The year 2002 is only 74 months away. First, we provide for a balanced budg- were created in 1965 when the average However, as I have said on many occa- et; American lived to be 61 and when our sions, I am an optimist. I am an opti- Second, we strengthen and preserve Nation had five workers to support mist because we know what works. We Medicare and Medicaid, thus allowing every one retiree must be modified to know the right kinds of policy and pro- these two important programs to con- reflect current reality. Today, the av- gram changes that need to be made, tinue to protect Americans into the fu- erage American lives more than 76 changes that will allow Medicare and ture; years, and there are less than four Medicaid to meet their current obliga- Third, we reform welfare; and finally, workers to support each retiree. tions while at the same time saving once we show that the budget is bal- In 1965, when Medicare was enacted, these programs for future beneficiaries. anced; the average American who reached re- We know how to restore sound finan- We create an environment for eco- tirement age could expect to collect cial practices to the Federal Govern- nomic expansion through tax cuts that October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15609 offer relief to our families and encour- come tax credit, will continue to re- sufficiently enough to save it in the age Americans to work, to save, and to ceive a larger earned income credit in longterm. It is no surprise that the pri- invest. the future. When combined with the vate sector has been much more suc- To give a little history, the EITC was $500 child credit and marriage penalty cessful at controlling health care costs, a bipartisan program, created to offset relief—issues that I will speak about in with innovative programs based on the sting of payroll taxes on working a minute—low-income working fami- market principles, than the Govern- families with children. The fact is, lies will be better off under our bill ment, which has depended largely on each dollar Government taxes creates a than they are today. Finally, we will price controls. To survive, the Medi- disincentive to work, while each dollar continue to spend in excess of $20 bil- care system must allow patients and that people keep for themselves is an lion on the EITC, keeping it as a sig- providers to use health resources effi- incentive to work. History has proven nificant program for the working poor. ciently through a choice of plans. this point. The economies of nations MEDICARE This is not a new idea; it is an ap- that have cut taxes have thrived, while Our second major objective with the proach that’s been tested and proven. those nations who have increased proposal we are introducing is to Offering choice in Medicare is based taxes—even to the point of taking ev- strengthen, preserve, and protect the erything the people earn—have fallen on the highly successful Federal em- Medicare system—not only for those ployees health benefit plan. Largely into ruin. who depend on the system today, but The EITC was to create incentives because of choice, this year the average for those who will need Medicare to- for low-income parents to work. It was FEHBP premium was reduced by 3.3 morrow. We accomplish this by allow- that simple. But as they say about too percent. Next year, the average in- ing the program to grow at about twice much of a good thing becoming dan- crease will only be 0.4 percent, proving the rate of inflation, and by introduc- gerous, such is what happened to this that choice brings competition and once-well-intended program. Over the ing choice in the system. In this way, savings. In fact, choice could work so years, the EITC has been expanded by a seniors are guaranteed continued cov- well that our current projctions—pro- welfare-oriented Congress into another erage as well as the ability to choose jections that keep Medicare solvent Federal handout. And today, some 85 those plans and health care providers through 2020—could be understated. percent of the EITC is a Federal outlay that best meet their needs. Beyond using choice to strengthen paid directly to individuals. No longer In our proposal, Medicare spending the program, beneficiaries will con- do individuals need to have families or increases form $178 billion in 1995 to tinue to pay 31.5 percent of the pre- children to qualify; no longer does the $286 billion in 2002. Average spending mium for part B. In 1997 we will phase EITC encourage work, as it once did; per beneficiary grows from $4,800 to out the taxpayer subsidy of the afflu- no longer is the program fair and cost- $7,000. ent for part B; we will increase the effective. Much of the EITC cannot Our proposal controls runaway costs deductibles from $100 to $150, and then even be considered tax relief because by introducing choice into the system, increase it $10 every year, thereafter. those who receive a direct payment giving our seniors the ability to remain Savings will also be made on the part from the Government pay no income in the current fee-for-service plan, if of Medicare providers, predominantly taxes at all. Make no mistake about it, that is what they want. On the other through reductions in scheduled pay- most of the EITC is a welfare check. hand, we also offer them an unlimited ment increases. Despite these re- Beyond this, the EITC is plagued by number of health care plan options straints, providers will continue to fraud and abuse. It sports a fraud and that they may choose to better meet enjoy annual growth rates of between 4 error rate between 24 and 40 percent, their needs. We call this Medicare and 10 percent over the next 7 years. choice, and it includes, beyond the cur- making it the most fraudulent welfare Our proposal also aggressively at- program on the books. Though the ad- rent fee-for-service plan, the oppor- tunity for our seniors to join plans tacks fraud and abuse in the Medicare ministration has worked to reduce Program. The GAO estimates that the these high rates, there is no evidence sponsored by local hospital and physi- cian groups, health maintenance orga- loss to Medicare from fraud and abuse that current rates are below double equals some 10 percent of the pro- digits. Many of those who commit nizations, point-of-service plans, or preferred provider organizations. It gram’s total spending, and law enforce- fraud are not even legally able to work ment officials claim that the majority in the United States. And the fact is, also allows for seniors to join high de- ductible medical savings account of Medicare fraud goes undetected. since the program’s inception, Amer- What we propose is to earmark a por- ican taxpayers have lost $25 billion to plans, union or association plans, and, in fact, any other kind of health plan tion of trust fund money, starting in fraud, waste, and abuse in the program. its first year with $200 million, to use The GAO estimates that if this kind of that meets the standards we set to pro- tect the beneficiaries. Beneficiaries for investigation and prosecution of fraud continues over the next 5 years, health care fraud. We also offer a num- the EITC could waste another $37 bil- will be protected under our proposal. Despite the plan they choose, all sen- ber of new tools to assist investigators lion. We can’t afford this. and prosecutors in attacking this prob- We need to get the program back to iors will receive coverage for the same lem. The CBO has estimates that our its original purpose: to help families services and items that are currently provisions in this area will save the with children offset the sting of payroll covered by the traditional Medicare program more than $4 billion over 7 taxes. And that is exactly what we do Program. The good news is that as years. with our proposal. We focus the pro- these new plans compete with each gram on the population for whom it other for business, it’s likely that they Under our program, reforms would was originally intended. We return it will offer even more benefits and im- extend the solvency of Medicare for from being just another welfare pro- proved services. about 18 years. According to the CBO gram to where it belongs as a legiti- The private sector, which has done estimates, under our proposal, the mate tax break for lower income work- much better in keeping costs down Medicare HI trust fund balance will ing Americans with children. than the Government, has proven that total $300 billion in the year 2005. The Our reforms will place an important choice creates competition, and com- CBO states, ‘‘the HI trust fund would degree of control on this program. petition is good for the consumer. And meet the Trustees’ test of short-range They successfully address the problems the fact is, in our proposal we are offer- financial adequacy.’’ In other words, of rampant growth, fraud, and abuse. ing seniors even more efficient and ef- for the next 10 years, the HI trust fund The key phrase here is ‘‘controlling fective health care plan options than balance, at the end of every year, will growth.’’ Remember, EITC will con- are available to most working Ameri- be more than enough to pay Medicare tinue to grow. It will continue to meet cans through their employers. benefits for the following year. the needs of those most vulnerable By introducing private market incen- More importantly, using the CBO’s among us. tives into the Medicare Program—by estimates through 2005, our Finance According to the Joint Committee on giving consumers options and encour- Committee staff, in consultation with Taxation, families with children, who aging providers to compete for busi- the Office of the Actuary within the now receive the maximum earned in- ness—we could control program growth Department of Health and Human S 15610 CONGRESSIONAL RECORD — SENATE October 25, 1995 Services, estimates that the Medicare ing more benefits for more people plus reform package just passed, the States Hi trust fund will be solvent through using the political system to negotiate will be able to experiment with ways to about the year 2020. That’s 10 years—10 supply and demand is a prescription for move families off welfare and into years—after the baby-boom generation failure. The price for this now includes work. The States will be able to design begins to retire, a quarter of a century annual deficits of up to $200 billion and health insurance coverage so that the from today. a second mortgage on the future which loss of Medicaid will no longer be a Concerning Medicaid, our objective our children and grandchildren will be barrier to leaving welfare. is, again, quite simple, to control the forced to pay. The States will plan, design, and im- unsustainable growth rate of this pro- Today we change these dynamics. plement Medicaid reform which will gram—a rate which reached as high as Today business as usual is over. meet their own unique needs in ways 30 percent in 1993. Even at its current The reconciliation package we offer Washington has not even started to 10.4 percent, the growth rate is too allows us to meet the needs of low-in- think about. Taxpayers and bene- high. We bring it down to a manageable come individuals, while at the same ficiaries alike will benefit from Medic- and more realistic 5 percent. We can time controlling costs, improving the aid reform and from achieving a bal- accomplish this by moving the pro- program, and working toward a bal- anced budget. gram back to where it belongs—back to anced budget. Under our proposal, Med- TAX REFORM the States. In fact, Governors have said icaid spending continues to grow, but These are important reforms. With- that they can manage the program at a slower, more predictable rate. The out them, the Medicare trust fund will with the more moderate spending in- money is given to the States with the become insolvent within a few years, creases if the Federal Government will flexibility to design effective and inno- and Medicaid will eat away at our chil- simply get out of their way. vative programs—programs to meet dren’s future, forcing Federal and Medicaid is best addressed by giving the individual needs of their low-in- State governments to borrow money States adequate funds and the author- come citizens. for generations yet unborn. According ity necessary to meet the needs of States can cover individuals and fam- to University of California economist their most vulnerable citizens, without ilies with income below 250 percent of Alan Auerbach, if current spending interference and excessive regulation the Federal poverty level—that’s trends and benefit formulas continue, from Washington. Governors have been $31,475 for a family of three. ‘‘the tax burden would be very close to asking for this authority since 1989, What we get away from are the thou- absorbing all the lifetime income of fu- when Bill Clinton, then Arkansas’ chief sands of pages of Federal mandates ture workers.’’ executive, signed a resolution calling that stifle creativity and our States’ for a freeze on the enactment of further ability to develop programs that are To escape from this, we must prepare Medicaid mandates. By extending both efficient and effective. Under our to move quickly and successfully be- States’ authority, allowing Governors proposal, we repeal all mandates. We yond our first objective of passing the the opportunity to find innovative allow States to standards and provider budget resolution to embrace what ways to provide for the unique needs of payment rates. And we no longer re- should be our second, adopting initia- their respective States, we can keep quire Federal waivers to implement tives that create an environment for the program at a manageable 40 per- many of the innovative delivery sys- economic growth. The only way to cent growth rate by 2002, rather than tems that have proven to be so success- break out of deficit spending, without the 100-percent increase in spending ful in the private sector. In fact, we en- cutting off essential services and for- now projected by CBO. courage States to combine programs feiting on the contracts the Federal Certainly, under this new structure, and experiment. However, as a safe- Government has made with our senior the States will have certain require- guard, we ask States to develop a State citizens, is to renew healthy economic ments that must be met. For example, plan and to submit annual reports and growth—growth which is above the 2.3- they will be accountable for how Fed- independent evaluations as well as pro- or 2.5-percent range currently pro- eral dollars are spent. States will spend visions for fighting fraud and abuse. jected by official forecasting agencies. 85 percent of what they are now spend- As under current law, the Federal This environment will be created ing on mandatory benefits for the three Government will match State funding, only as Government adopts real tax re- of the most vulnerable populations: up to an aggregate cap. Under this pro- form—reform that shifts the bias low-income pregnant women and chil- posal, total Federal Medicaid spending against savings and investment in the dren, the disabled, and the elderly. will continue to increase over the pe- current Tax Code to a system that en- There will also be protection from riod 1996–2002. In this period, the Fed- courages saving and investment over nursing home costs against impover- eral Government will provide $776 bil- consumption. Among the means to tap ishing spouses living at home. Like- lion to the States to meet the needs of into the consumption base are: The flat wise, States will be allowed to use Med- poor children, the elderly, and people tax, a national sales tax, or an ex- icaid funds to see that children are im- who are disabled. This is the equivalent panded IRA. munized. of half of the total of today’s Federal While some have emphasized the dif- We must remember that Medicaid budget. ferences between these three plans, was designed to be an equal partner- Between 1995 and 2002, total Federal they are grounded in the same eco- ship between the Federal Government spending on Medicaid will still grow by nomic concept of taxation, and I am and the States. However, the Federal over 40 percent. pleased to see their growing acceptance Government in recent years has ef- Mr. President, the States will make among Americans. Ultimately some fected what can only be seen as a take- these reforms work. Federal funding kind of compromise, possibly including over. Toward this end, all three will continue to increase while we pro- elements from all of them, should be branches of the Federal Government vide the States with control over how possible. have played critical roles. Congress and these funds will be spent. After 30 years The current income tax system has the courts have expanded eligibility of Federal control, it is time to put the not only undermined economic growth, while the bureaucracy has paralyzed State in charge. Capping Federal it has also undermined the economic the States with regulations. The time spending will allow the States to en- position of American families. We must has come to release the choke hold. force fiscal discipline. They will clearly act to provide tax relief for families Medicaid now consumes 20 percent of know that the deep pockets of the Fed- that are already facing intense pres- State budgets—20 percent. That means eral Government are not bottomless. sures on other fronts. It is my desire to fewer dollars for education, for fighting With firm control over these funds, provide tax relief in the context of the crime, and rebuilding infrastructure. we will unleash the creativity of the current reconciliation package, but I Since 1990, the number of Medicaid States in meeting the needs of the low- also believe we must not overlook the recipients have increased by nearly income citizens. The States will be opportunity to provide the additional one-third, as the current law has cre- able to expand managed care without tax relief in future tax reform, fi- ated over 70 different ways for people asking permission of the Washington nanced by continued restraint in Fed- to become eligible for benefits. Promis- bureaucracy. Coupled with the welfare eral spending growth. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15611 The tax relief offered in this rec- The four pillars of our proposal are: Mr. MOYNIHAN. Mr. President, I ask onciliation package is very much in First, a $500 child tax credit; second, unanimous consent that the period of the realm of current possibilities. We restoration and strengthening of indi- morning business be extended until 1:30 offer a $245 billion tax cut which goes vidual retirement accounts; third, re- and that the time be equally divided. I into effect only when the CBO has cer- lief from overbearing estate taxes on believe it is the desire of the majority tified that deficit reduction is being families and businesses; and, fourth, re- that the speakers alternate, if that is achieved. Despite what some may say duction of the top rate of capital gains convenient. for political reasons, this tax relief on individuals and corporations. The PRESIDING OFFICER. Is there does not come at the expense of Medi- These measures meet our promise to objection? Without objection, it is so care. As the generally more liberal the American people. They represent a ordered. Washington Post admitted, ‘‘The bold beginning in our effort to break Mr. ROTH. Reserving the right to ob- Democrats have fabricated the Medi- with the failed policies of the past. The ject, may I finish? care-tax cut connection because it is current tax system double-taxes sav- Mr. MOYNIHAN. Yes. useful politically.’’ In an earlier edi- ings, thwarts investment, hinders pro- The PRESIDING OFFICER. Hearing torial, the Post opined that, ductivity, increases prices, stifles no objection, without objection it is so The Democrats are engaged in dema- wages, and hurts exports. It is complex, ordered. goguery, big time. And it’s wrong. . . . [The controlled by special interest groups, The Senator from Delaware. Republicans] have a plan. Enough is known and places disincentives on work. Mr. ROTH. Mr. President, as I was about it to say it’s credible; it’s gutsy and in We move to correct these defi- some respects inventive—and it addresses a stating, that is what this reconcili- ciencies, and because we have cut genuine problem that is only going to get ation package is all about—the future. spending, our bill balances the budget worse. What Democrats have [on the other As Lincoln said, ‘‘The struggle of hand] is a lot of expostulation, TV ads and while making room for tax relief. scare talk. Americans need relief. Our economy today is not altogether for today—it is for a vast future, also’’—a future that I That is the end of the quote from the needs a shot in the arm. Even Bill Clin- believe will be very bright if we suc- Washington Post. ton has admitted as much. I call on Under the bill we propose today, him to join us in our efforts to unleash ceed in our endeavors here today. using Medicare savings for tax cuts is the potential our economy has to move Our objective is to strengthen the illegal. The law requires that money us into a bold and exciting future. American Dream—in our homes, in our saved on the Medicare Program will The PRESIDING OFFICER. The time schools, in our communities, in our stay in the Medicare Program. These of the Senator from Delaware has ex- States, and all across the land. Some are trust funds, the assets of which pired. have said that the dream is dead, that may not be used for any other purpose. Mr. MOYNIHAN addressed the Chair. our children cannot expect to lead a And to say otherwise, as the Post The PRESIDING OFFICER. The Sen- better life than that led by their par- points out, is little more than politi- ator from New York. ents. I strongly disagree. However, I do cally motivated scare tactics. Mr. ROTH. Mr. President, will the believe that in order to meet the do- The fact is, our efforts preserve and distinguished Senator from New York mestic challenges before us—as we strengthen the Medicare trust fund. yield? I have about three more pages. look to put our house in order here at This is a promise made and a promise May I finish? home—as we seek to maintain influ- kept. Likewise our efforts bring the Mr. MOYNIHAN. Of course. Could we ence and leadership abroad, that we Federal budget into balance and pro- then extend morning business until must reinvent America to reflect the vide substantial tax relief for middle- 1:30? profound changes that are taking place income Americans. Again, promises Mr. KENNEDY. Reserving the right throughout the world as well as here in made and kept. I can only guess that to object—and I do not intend to ob- the United States. these scare tactics are being used by ject—if we can have the morning busi- We must build on principles that are some because for so long these individ- ness time, whatever morning business tried and proven and good. We know uals have gotten by politically by mak- there was, divided equally between the what works. We know what’s failed. ing promises without keeping them. two sides, whatever amount of time, And we cannot march boldly into the Well, you cannot have it both ways. since we are off the bill. If we could future with blueprints prepared for the You are either working for the kinds of have whatever amount of time to be di- past. This reinventing of America must changes the American people want, or vided equally, then I would not object. be thorough, it must create a nation you are locked into business as usual. If we are not going to have that alloca- that is compassionate, responsible, and You are either working for reform, or tion of time, then I feel compelled to economically viable from the houses in you are an agent of big Government, object. our neighborhoods to the Houses of runaway spending, and political Mr. MOYNIHAN. Mr. President, may Congress. It must encourage self-reli- gridlock. I make the suggestion that morning ance, risk-taking, and the confidence Let this reconciliation package show business be continued to 1:30 and that that diligent labor will be rewarded Americans who stands where on these the time be equally divided? with security and even greater oppor- important issues. Mr. KENNEDY. Reserving the right tunity for reward. Our plan offers a $500-a-child tax to object, that does not include the last These are the principles that built credit, encourages savings and invest- 10 minutes—just from the time we go America, and they are the principles ment, and offers other incentives for to morning business, divided equally. that will see us into a bright and ex- economic growth. Our proposal to cut Mr. GRASSLEY. Mr. President, I pansive new millennium. taxes by $245 billion, offers relief for have to object momentarily for the Mr. President, I yield the floor. our middle class—with over 70 percent leader. We want to find out if Senator Mr. MOYNIHAN addressed the Chair. of the $245 billion going to families DOLE wants this time extended. The PRESIDING OFFICER. The Sen- making less than $75,000 a year. These The PRESIDING OFFICER. Objec- ator from New York. provisions mean more security for our tion is heard. The Senator from New Mr. MOYNIHAN. I wish to congratu- families, more jobs for Americans, and York has the floor. late the chairman of the Finance Com- greater stability in our communities. Mr. MOYNIHAN. Mr. President, I mittee on a very thoughtful and deeply Of the $245 billion Senate relief pack- suggest the absence of a quorum. felt exposition of his views. They are age, a full $223 billion will go to fami- The PRESIDING OFFICER. The not entirely shared on this side, but lies. The remaining $22 billion will clerk will call the roll. they are, nonetheless, admired for the strengthen businesses and lead to in- The bill clerk proceeded to call the grace in which he has presented them. creased employment opportunity. It roll. will also improve America’s ability to Mr. MOYNIHAN. Mr. President, I ask f compete in the global community, with unanimous consent that the order for other nations that provide their busi- the quorum call be rescinded. REPUBLICAN BUDGET PLAN nesses with strong incentives to com- The PRESIDING OFFICER. Without Mr. MOYNIHAN. Mr. President, ear- pete with us. objection, it is so ordered. lier in the day, this morning, I was S 15612 CONGRESSIONAL RECORD — SENATE October 25, 1995 speaking without notes. I stated that care as they need to do in order to The PRESIDING OFFICER. There under the Republican budget plan the make the hospital insurance trust fund are 9 minutes and 20 seconds. national debt will increase by $700 bil- solvent to the year 2006. There is no Mr. KENNEDY. I will yield myself 3 lion in the next 7 years. I would like need to do $270 billion of cuts. minutes. I think Senator MIKULSKI now to correct that to be the precise So between the $89 billion that the wanted time. number, which is $669 billion. That is trustees of the trust fund say is needed I yield myself 3 minutes, Mr. Presi- how much more we will borrow. to make the Medicare hospital insur- dent. I surely cannot think of any figure ance trust fund solvent, which is what more explicitly to state the irrespon- all the rhetoric is around here, to make f sibility of a $245 billion tax cut. We will the thing solvent—they all say, the IGNORING THE RECOMMENDATION borrow every penny of that tax cut. If trustees, that is, $89 billion—and the OF THE MEDICARE TRUSTEES that were not the last thing to say, it majority party taking $270 billion out turns out that the tax cut is a tax in- of Medicare to do the work for which Mr. KENNEDY. Mr. President, for 2 crease on average for taxpayers with only $89 billion is required, therefore, hours I have been on the floor of the income up to $30,000—half of all tax- there is a gap of $181 billion, to which Senate and the one thing we did not payers—because of the reduction in the I would think an ordinary inquiring hear, which is at the heart of this earned income tax credit. For the rest citizen would say: What is this $181 bil- whole program, is how our Republican the bill reduces taxes. And we will bor- lion for if all we need is $89 billion to friends possibly justify not taking the row every penny of the tax cut, and make the Medicare trust fund solvent? recommendation of the trustees, which persons working, paying taxes, and try- And the answer, of course, is oft pro- is the amount to ensure solvency for ing to get along will pay for every cent claimed, oft denied on the other side Medicare is $89 billion, and for them to of the tax increase. but a matter of irrefutable fact, and justify a $270 billion cut. For 2 hours Mr. President, there is no way to get that is that it is going to be used to we have waited to hear the reasons for rid of a $5 trillion debt. I hope we give in part an enormous tax break to that. We have not heard it. There is si- know. Once again, to say, if it were not families and institutions of wealth, and lence on the other side for the reasons for that Contract With America, we that emanates from the fact that this that the Senator from West Virginia would not be talking about a $245 bil- was part of the contract. It had its gen- will point out and the reasons why we lion tax cut on this floor, in this Cham- esis when NEWT GINGRICH on a sunny will have an opportunity to vote. ber. We know it. We all know it. And I day went with a band of very commit- The Republican proposal is to provide need not repeat it again. ted, newly elected House Members and not just the $87 billion, not just sol- I thank the Chair. I appreciate the in front of all kinds of American flags vency for the Medicare Program but courtesy. pronounced the 10 commandments, of lavish tax breaks for the wealthiest in- Mr. ROCKEFELLER addressed the which the greatest was a tax cut, the dividuals. That is what this is about. Chair. crown jewel was a tax cut. The Republicans have not made that The PRESIDING OFFICER. The Sen- That having been done, obviously no case. They have not justified why that ator from West Virginia. less could be done in this body and so is necessary and what the impact is f the $245 billion, or $225 billion tax cut going to be on senior citizens. It will be became the mantra. So that tax cut MEDICARE double their deductible, double their has to be achieved. We do not have that copay, a raise in the premium, and Mr. ROCKEFELLER. Mr. President, I kind of money laying around, nor does raise the age eligibility from 65 to 67. have a motion here in my hand. It is a the average American family, and Have you heard that explained by our motion to recommit with instructions. therefore where do we get it? We go to And I would like to say to every one of Republican colleagues? No, you have Medicare and to Medicaid, and we cut not, Mr. President. And squeeze the el- my colleagues on both sides of the aisle them egregiously in order to do that. that the first amendment that we deal derly so they will no longer have a I have no idea of how I am going to choice of doctors. That is what this with today in the U.S. Senate—that we explain the damage done to the people are dealing with today, the day that we legislation is about. We want answers. of West Virginia, to the seniors of West We want answers from those who are meant for dealing with amendments of Virginia, to the health institutions of absolutely enormous importance to the trying to jam this through the Senate West Virginia, to the veterans of West of the United States. future of our country—is going to be Virginia by this Medicare cut. And I Why should we accept it? We will the Medicare amendment. will be talking at length about that at have an opportunity to reject it, and I I do not care how many meetings are the time we actually do lay the amend- hope that the Senate will speak for the held in the majority leader’s office, I ment down. But the amendment is sim- American people and seniors this after- do not care how many long speeches ply to say on our side we will not ac- noon. are given, I do not care how many cept a $270 billion cut when $89 billion morning businesses are taken, and I do will do the job, stamped and approved Mr. GRASSLEY addressed the Chair. not care even to the fact that no Demo- by those whose responsibility it is to The PRESIDING OFFICER. The Sen- crat, other than the chairmen of the do the job, the trustees of the hospital ator from Iowa. Budget Committee and the Finance insurance trust fund, in order to not Mr. GRASSLEY. Mr. President, I Committee, has been able to say a word have to do the $270 billion cut which yield myself 10 minutes. on this day, the day we meant to be de- the majority party is doing for the pur- f voting an hour to a series of extraor- pose of raising enough money to give a dinarily important amendments on tax cut to those who do not need it. CHANGES IN MEDICARE Medicare, EITC, Medicaid, and other I find this extraordinary. I find it PROVISIONS matters, this amendment is going to be certainly worth the meager 1 hour that Mr. GRASSLEY. Mr. President, I the first amendment laid down. It will we are going to be able to have on each want to touch on portions of this rec- recommit the Republican $270 billion side to discuss the Medicare amend- onciliation bill that deal very effec- cut in Medicare to the Finance Com- ment. But the Medicare amendment tively with the changes in Medicare mittee for further work. there will be, and it will be the first provisions that are very good nation- I just want my colleagues to be fully one and it will happen. aware of that fact. That will be the I thank the Presiding Officer. ally and provisions that are very good first amendment, the Medicare amend- Mr. KENNEDY addressed the Chair. for rural America. ment. And it will come regardless of The PRESIDING OFFICER. The Sen- The bill will put the financial situa- what tactics are used or whatever dila- ator from Massachusetts. tion of the Medicare Program, particu- tory procedures are adopted. Mr. KENNEDY. Mr. President, how larly the part A hospital trust fund, I will say that the reason we on the much time do we have? I see my friends but also part B for physician services, Democratic side are laying this motion from Minnesota and North Dakota. on a sounder, more sustainable footing. down is that the Republicans are cut- How much time do we have on this side This will ensure that current and fu- ting three times as much out of Medi- under the consent agreement? ture Medicare beneficiaries in Iowa and October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15613 elsewhere can continue to depend on the more services allowed, the more also very good for our low-reimburse- the program. times you see the doctor, the more ment rural counties. In addition to putting the program in times you go to the hospital, the more Mr. President, how much time do I good shape financially so that it lasts payment you get. have left of the 10 minutes that I allot- into the future, for the baby boomers There is no rational justification for ted myself? particularly, we also create a new re- such gross payment disparities from The PRESIDING OFFICER. One formed Medicare alongside this tradi- one region to another under the minute fifteen seconds. tional Medicare Program that we have present Medicare system. This bill re- Mr. GRASSLEY. Mr. President, I known for the last 30 years. forms that. Furthermore, I might say, The Medicare reforms in the Senate the citizens in the low-reimbursement want to respond to a point made by the bill will increase substantially the per areas pay the same payroll taxes and distinguished Senator from New York capita payments that Medicare pro- the same Medicare premiums and the earlier, Senator MOYNIHAN, when he grams make to low-reimbursement same deductibles as their cocitizens in said you cannot balance the budget by States like my State of Iowa, and other the higher reimbursement areas. This cutting taxes. I do not respond just to rural States of our Nation. is a problem that we should fix and fix what Senator MOYNIHAN said; I respond This is a very important component soon. We have gone a long way toward to this point because it is made contin- of this Medicare reform. If we are able fixing it in this bill. And if we can re- ually by people on the other side of the to retain this reform by getting it tain that through the House-Senate aisle. through the Senate, by getting it conference, we will have very good pro- First of all, it certainly is ironic to through conference with the House, it visions for most of the United States be getting lectures from the other side would be a great benefit to rural com- because most of the United States is about how to balance the budget. The munities of my State and of the United rural. only alternative on their side was States—all of them. The critically im- On the traditional Medicare side, the voted down yesterday 96 to 0. That was portant issue is whether Medicare’s per bill does call for a spending slowdown, the President’s budget. And it would capita payment will be reformed. I but it contains several provisions never balance. A chimpanzee with a have to emphasize that. Reform of which I helped get in this bill which typewriter will bang out by accident Medicare’s per capita payment is the will help sustain health care services in the entire Encyclopedia Britannica be- essential element of bringing fairness rural America. We reinstituted the fore the President’s budget would be and soundness to the system. The pay- Medicare-dependent hospital program, balanced. ment Medicare makes to health plans which will provide additional reim- The question is whether or not Re- for those who enroll is the core ele- bursement for Iowa’s 30 small rural publicans then can walk and chew gum ment in the new reform program. counties that are very dependent on at the same time. And, of course, we Currently, those per capita payments Medicare programs and in a lot of can. We can balance the budget and vary greatly from one part of the coun- other States as well. then cut taxes at the same time. We try to another. The per capita pay- We establish a critical access hos- must do this. We can do this with mini- ments in the highest reimbursement pital program which will help the very mal risk because we use very conserv- areas are as much as 300 percent great- smallest hospitals in rural America, in- ative and very credible CBO estimates, er than the per capita payments in the cluding Iowa, redefine their mission, unlike the President who has been af- low-reimbursement areas. receive better reimbursement and flicted, like some of his predecessors, I would now refer my colleagues to thereby continue to provide services in with the narcotic of optimism. this map. Many of the counties on this their communities. I yield the floor. map are in darker colors. All of those We increase next the bonus payment Ms. MIKULSKI addressed the Chair. with darker colors are way below the for physicians who work in commu- national average in per capita reim- nities where there is a physician short- The PRESIDING OFFICER. The Sen- bursement for Medicare. age. We do that from a 10 percent to a ator from Maryland. The red areas make up only 10 per- 20 percent bonus. Ms. MIKULSKI. Mr. President, I cent of the counties. Dade County, FL, Next, we included for the third time yield myself 3 minutes. counties in California, counties in the in legislation sent from the Senate to f metropolitan area of the East, and the House my legislation which would metropolitan counties of the South, reimburse physicians’ assistants and SAVING MEDICARE particularly Texas and Louisiana. nurse practitioners at 85 percent of the Ms. MIKULSKI. Mr. President, I rise Those counties in red are the highest physician’s rate when they provide the in strong support of a Democratic lead- per capita reimbursement counties in same services. I hope and believe that ership amendment that will be offered the United States. The variation from the bonus payment and the physician’s to save Medicare. I support it because the dark, low-reimbursement counties assistance, nurse practitioner legisla- it will save lives and save American to the high-reimbursement counties, tion will increase the availability of seniors from bankruptcy. can be as much as 300 percent from the primary health care services in rural county with the highest per capita pay- America, including my State of Iowa. The Republican budget reconciliation ment to the county with the lowest. Finally, we authorize a program of before us would cut Medicare by $270 Now, remember that this map shows telemedicine grants which could be billion. And it does so for one reason: per capita reimbursement. So the rat- very helpful in Iowa with our develop- to pay for tax breaks for the wealthy. ing of our counties from low-reim- ing telemedicine services. And, of In contrast, the Democratic amend- bursement to high-reimbursement does course, Medicare beneficiaries may ment would eliminate all but $89 bil- not depend in any way upon the num- continue to participate in the tradi- lion of this Medicare cut. This would bers of Medicare beneficiaries in the tional Medicare Program and continue guarantee enough savings to keep Med- area. There are differences in input to choose their own doctors if that is icare solvent, but we would eliminate prices around the country, of course. what they want to do. They are going the provisions which the Republicans But those differences cannot account to have a choice for the first time, a have proposed as a new tax cut on sen- for the very substantial reimbursement choice of keeping exactly what the ior citizens. differences between the low-cost areas, Government has offered for 30 years or We want to eliminate the Republican the dark areas, versus the red areas, a choice of choosing an HMO, a medical plan to double Medicare premiums. We the very high-cost reimbursement savings account, or their traditional want to eliminate the Republican plan areas. association or union plan that they had to double the out-of-pocket deductibles The differences then reflect the fact where they last worked when they re- for seniors. We want to eliminate the that providers in those high-cost coun- tired. Republican plan to force seniors who ties, high-reimbursement counties, are So, Mr. President, if we can hold the want to keep their own doctor to pay getting more money for each bene- line in discussions with the House on for higher charges for Medicare care. ficiary that passes through the system. these provisions, this Medicare reform We believe that the American senior The more you go through the system, could be good for the United States but citizens should get to pick their own S 15614 CONGRESSIONAL RECORD — SENATE October 25, 1995 doctor and be able to have health care tory. For most of us, a balanced Fed- families to meet their own needs. The that they can afford and not have these eral budget is a distant memory. For theory is simple: A dollar spent by increased premiums and deductibles. decades, it has been an empty political families is more useful than a dollar And we can do it by focusing on sol- promise, but now it is just one final spent by Government. vency and efficiency. vote away. All that remains is one Second, this package also includes an Mr. President, this amendment is not final act of courage and vision. adoption credit of $5,000. Along with about partisan politics; it is about the That courage will be tested in the the child tax credit, these two provi- men and women that I call the GI Joe Congress by some difficult choices that sions represent about 60 percent of the generation. These are the men and we will have to make here in the next entire tax package. There is no more women like my uncles and my father, 3 days. That vision will be measured in compassionate act than to provide an ordinary men, who during World War II the President, as he becomes either a abandoned or abused child with a lov- were called to do extraordinary things. partner in the process or a partisan op- ing family, and the number of children They fought over there so we could be ponent. If either he or we are unequal who need those families is rising sharp- free here. to this task, the patience of the public ly. Yet, at the same time, the number Those are the women in my commu- will be exhausted. We will have squan- of adoptions has dropped by nearly 50 nity we call affectionately Rosie the dered a unique opportunity, and we percent over the last 25 years and, on Riveter, women who worked at Martin will feed a dangerous disillusionment any given day, 37,000 children are wait- Marietta, in shipyards helping to keep with American politics. ing to be adopted. the homefront going while our men I am confident that this chance will were overseas. not be missed; that this new Congress Thousands of families would be eager Those are our senior citizens of will show a new determination. But to adopt if it were not for the prohibi- today, the men and women of the this bill involves more than fiscal re- tive cost, now about $14,000 on average. World War II generation. They helped straint. It represents a radical shift of A $5,000 credit would make this a rea- save Western civilization. So now it is resources away from Government, di- sonable option for more parents. up to us to save their Medicare. It is rectly to families. It contains the sin- The PRESIDING OFFICER. The time the very least we can do, that on the gle-most practical, compassionate way of the Senator from Indiana has ex- brink of a new century we give our to provide immediate help and support pired. honor and our respect to those who to children. That is a fact that Ameri- Mr. WELLSTONE addressed the saved us during this last century. cans must understand and that oppo- Chair. Mr. President, in 1965, a great Demo- nents cannot be allowed to ignore, be- cratic President knew that one illness Mr. COATS. Mr. President, I ask cause this budget matches its commit- unanimous consent for 2 additional could devastate a family, and they or- ment to cuts with commitments to ganized to be able to pass Medicare. minutes. Is that permitted? families. It reduces both the reach of Mr. WELLSTONE. Reserving the That stands today. We have to keep the Government and the level of taxes, and ‘‘care’’ in Medicare. right to object, I wonder whether it embodies important values that can- The Republican plan will mean less morning business can be extended, in not be represented in a balance sheet. access to health care, fewer doctor vis- which case it will not be a problem. If Let me take three provisions of this its, less necessary tests and less of a we extend 2 minutes on both sides, that budget as examples—priorities that I focus on prevention. This is not what will be fine. have championed for years. These are we should be doing. Yes, we all want to measures that would directly improve The PRESIDING OFFICER. With balance the budget, but I believe we the lives of families and children in my unanimous consent, morning business can save Medicare and focus on sol- State and people around the country. would be extended. vency. Mr. GRASSLEY. Reserving the right Let us go after that waste, let us go We have proposed them again and to object, I think probably we ought to after that fraud, let us be more effi- again, only to see them ignored or de- give 2 minutes here and 2 minutes over cient, but let us also remember the GI feated. Now they are one step short there to be fair, which is the way we generation. They fought to save us, and from reality. have done it in the past. In addition, I the very least we can do now is to fight First, this budget includes a $500 want to be careful we do not extend the to save their health care. child tax credit. This sounds somewhat Several Senators addressed the abstract, so let me be specific. The rec- time because we have been clearing Chair. onciliation package would provide that with the managers of the bill. I do The PRESIDING OFFICER. The nearly $600 million of tax relief to Indi- not think I can just willy-nilly allow Chair has been instructed to alternate ana families. Over 1 million Indiana the expansion of time. I think 2 min- between sides. The Senator from Iowa. children would be eligible for the cred- utes is appropriate. Mr. GRASSLEY. Mr. President, I it, and nearly 100,000 Hoosier taxpayers Mr. WELLSTONE. My understanding yield the remainder of time on this side would have their entire tax liability is 2 minutes will be extended to the of the aisle in morning business to Sen- eliminated by this single measure Senator from Indiana and I will have 2 ator COATS. alone. minutes on top of what I already have. The PRESIDING OFFICER. The Sen- Democrats in this debate have tried The PRESIDING OFFICER. The time ator from Indiana. to draw attention to children, and that on the minority side is 4 minutes and 6 f is precisely where our attention should seconds. That would extend the time to be. But children are not raised by bu- 6 minutes and 6 seconds. The majority ONE FINAL ACT OF COURAGE AND reaucrats, they are raised by parents. side would have 2 minutes. VISION If the choice is between $600 million Is there objection? Without objec- Mr. COATS. Mr. President, just 8 spent by Government in Indiana and tion, it is so ordered. short months ago, when Democrats de- $600 million spent by parents, there is feated the balanced budget amend- no choice. Parents are more compas- Mr. COATS. Mr. President, thousands ment, the minority leader challenged sionate and more capable than any of families would be eager to adopt us by saying: ‘‘The budget is not going Government program can ever be. were it not for the prohibitive cost, to be balanced in 2002 unless the re- In reality, nearly 90 percent of the now about $14,000 on average. A $5,000 sponsible people in 1995 start to focus child tax credit will go to families credit would make this a reasonable on their share of the work.’’ making less than $75,000 a year. Over 50 option for more parents. Well, Mr. President, I submit that re- million American children will be eligi- Encouraging adoption is one of the sponsible people in Congress have fo- ble. Cutting Government and cutting most effective ways to care for chil- cused on their work, and now it is up to taxes are part of the same movement dren in need and at risk. Abused and the minority to show whether their in America, the movement to limit our abandoned children require loving statements supporting a balanced Government and empower our people. homes more than they require any budget were a conviction or an alibi. One idea implies and requires the amount of bureaucratic spending in the The reconciliation bill we are debat- other. When we reduce public spending, status quo bill presented by the Demo- ing not only makes sense, it makes his- we should increase the resources to crats. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15615 Third, this reconciliation bill in- I had an amendment on the floor of North Dakota and in Kentucky and in cludes medical savings accounts, an the Senate that asked my colleagues to rural Iowa, the rural heartland all idea that I was the first to introduce in go on record saying that if, as a result across this country, the issue, Mr. the Senate. These accounts will give of this reconciliation bill with its cuts President, is not just whether we can families independence and choice on disproportionately targeted on vulner- afford a doctor, it is whether we can health care, the opposite of the Presi- able children in America, there was find a doctor. dent’s approach. It delivers security more hunger and there was a situation This is a rush to recklessness. This is without bureaucracy, providing fami- where more children went without a fast track to foolishness. Ask your lies the resources to care for their own medical coverage, that we would re- providers, ask your nurses, ask your needs. visit this question next year and take physician assistants, ask your doctors, The centerpiece of this reconciliation corrective action, and I could not get ask your elderly, ask their children, bill is a balanced budget. In the future, that sense-of-the-Senate amendment ask their grandchildren. What you are this will be recalled as our contribu- adopted. I do not see too much compas- about to do is very reckless with the tion to history. If we ignore our budget sion in that vote, Mr. President. lives of people. crisis, the child born this year will pay Mr. President, I hope we start this Mr. President, I will tell you some- $187,000 over his lifetime just for inter- debate soon on the Medicare. I want to thing. I just get more than a little bit est on the national debt. start out by responding to my friend angry when I see this stereotype and The argument for a balanced budget from Iowa. I just quote my friend from hear this stereotype about the elderly. comes down to something simple: It is Illinois, Senator SIMON. He has said it You would think that the elderly are a one of our highest moral traditions for once, twice, 10 times, that to say we bunch of ‘‘greedy geezers’’ that are parents to sacrifice for the sake of are serious about deficit reduction and traveling all over the country playing their children. It is the depth of selfish- then to have $245 billion of tax give- golf at the swankest golf courses there ness to call on children to sacrifice for aways is like saying to somebody we are. Mr. President, in my State of Min- the sake of their parents. are going to put you on a strict diet nesota, 70,000 seniors live below the If we continue on our current path, but first we are going to give you des- Federal poverty line. In my State, of we will violate a trust between genera- sert. It is a huge contradiction. I do the 635,000 Medicare recipients, half of tions and earn the contempt of the fu- not find people in cafes in Minnesota them have annual incomes under ture. saying to me: Senator WELLSTONE, we $20,000 a year. Mr. President, in my There is no doubt we must balance are serious about deficit reduction, but State of Minnesota, of the 635,000 Medi- the budget, but in passing this bill, we would you first give us more tax care beneficiaries, they are paying, on will accomplish even more, because breaks? That is not what I hear from the average, over $2,000 out-of-pocket. this bill displays a passion for limited people. They know it is a huge con- Right now, for many seniors, cata- Government, yet it also displays com- tradiction and that you being cannot strophic health care costs are a night- passion for American families. It fi- dance at two weddings at the same mare. They are terrified of prescription nally returns responsibility to the Fed- time. It makes no sense. drug costs. eral budget, yet it also helps return Second point. Mr President, $89 bil- Mr. President, what we have here is abused and abandoned children to lion is the figure for the trust fund. In- an effort to make Medicare the piggy adoptive families. stead, we have $270 billion. People in It will improve the long-term health Minnesota know how to add and sub- bank for tax cuts—rather tax give- of our economy, and yet it will also de- tract. What we have going on here on aways, which flow in the main to the liver short-term help to families and to the floor of the U.S. Senate today is no highest income citizens of the United children, relief that will be felt next less than an effort to make Medicare States of America. There is no stand- year and every year beyond. the piggy bank for tax cuts, or tax ard of fairness behind this proposal. These are not sideshows or distrac- giveaways. That is bad enough. What People will see through it. tions. This plan includes real relief makes it worse is it is tax giveaways in The second thing that is so unfortu- that will be felt and appreciated by the inverse relationship to those people nate, so unconscionable, so unthinking American people, and that relief is spe- who least need the tax breaks. Mr. about this proposal, will be its impact cifically directed toward families with President, that is simply unconscion- on the people of this country. Mr. children. This is actual, meaningful able. President, $89 billion is not $270 billion. compassion, not the synthetic, failed The third point. This is a rush to Please do not tell senior citizens their compassion of Government programs. recklessness. I was surprised to hear premiums will not go up, their copays Mr. President, we have come to the my colleague from Iowa talking about will not go up, and in no way, shape, or beginning of the end of deficit spending the benefits of this for rural Iowa or form do you have to worry, and your in America. We have come to this place rural Minnesota. I say to my colleague hospitals, clinics, and providers will all because there is no alternative. The from Iowa, understand that in your get adequate reimbursement, and eligi- work before us is difficult. But it is proposal you have reimbursement to bility will not change, and we will just nothing more than most Americans ex- hospitals, rural hospitals, 2.5 percent take $270 billion out of this health care pect. less than rate of medical inflation. I sector. We have come to a time that is tell you right now that our hospitals Mr. President, senior citizens do not unique—an authentic moment of deci- and clinics in rural America, in greater believe it, they should not believe it, sion. It is a moment to act worthy of Minnesota, do not have the large profit they will not believe it. That is why our words, and to keep faith with the margin; that is point one. Point two, this amendment that will be laid down future. they have a disproportionate amount by my colleague, the Senator from Mr. WELLSTONE addressed the of their patient mix—60 percent, 70 per- West Virginia, deserves the full support Chair. cent. of every Senator in this Chamber. The PRESIDING OFFICER (Mr. What I am saying to people watching I yield the floor. FAIRCLOTH). The Senator from Min- this debate is that, in rural America, f nesota. many of the people that come to our f hospitals and clinics are elderly. Medi- CONCLUSION OF MORNING care is hugely important for them. BUSINESS NO COMPASSION That makes up a large share of the The PRESIDING OFFICER. The time Mr. WELLSTONE. Mr. President, I payments that go to these hospitals. for morning business has expired. want to talk about an amendment we They do not have the profit margin. are going to have coming up on Medi- They have a large percentage of the f care. Just for the record, let me briefly population that are elderly, who de- respond to the Senator from Indiana. pend upon adequate Medicare reim- THE BALANCED BUDGET In all due respect, I do not see this bursement, and you have in your for- RECONCILIATION ACT OF 1995 compassion. I see $35 billion of cuts in mula 25.5 percent less than the rate of The Senate continued with the con- nutrition programs. inflation. In rural Minnesota and in sideration of the bill. S 15616 CONGRESSIONAL RECORD — SENATE October 25, 1995 Mr. DOLE. Mr. President, the pend- Mr. ROCKEFELLER. No. The Sen- When the average income of senior ing business is what? ator was laying down a motion, and the citizens is, in fact, $17,750 on a national The PRESIDING OFFICER. S. 1357 is Senator wishes to speak on that mo- basis, and closer to $10,700 in my own the pending business. tion. State, and when they pay 21 percent of Mr. DOLE. It is my understanding The PRESIDING OFFICER. Without their income for health expenses as it that the ranking member, Senator objection, it is so ordered. is now—that is, unless they are over 84, EXON, is now prepared to offer the Med- The text of the motion to commit is in which case the figure rises to 34 per- icare amendment. We have not yet as follows: cent—no wonder they are incredulous, reached an overall agreement. So I MOTION TO COMMIT WITH INSTRUCTIONS no wonder they are petrified to hear cannot say it will not be second- Mr. President, I move to commit the bill S. their Medicare is being used to pay for degreed, or whatever. At least we can 1357 to the Committee on Finance with in- tax breaks, tax giveaways to far, far start on that amendment. I guess it is structions to report the bill back to the Sen- wealthier Americans and every imag- a motion to recommit. I did not see the ate within 3 days not to include any day the Senate is not in session making changes in inable kind of corporation. leader on the floor. I think we can legislation within that Committee’s jurisdic- I have no way that I can think of to start on that. That would give us some tion to eliminate any reductions in Medicare explain to the 330,000 Medicare bene- time to start talking back and forth. beyond the $89,000,000,000 necessary to main- ficiaries in my State why their Medi- Mr. DASCHLE. Mr. President, par- tain trust fund solvency through the year care deductibles will double, their pre- liamentary inquiry. How much time 2006 and to reduce revenue reductions for miums will skyrocket, and West Vir- has been consumed thus far? upper-income taxpayers by the amount nec- ginia hospitals are threatened with the The PRESIDING OFFICER. The ma- essary to ensure deficit neutrality. possibility of losing $25 million in 1996 jority leader has used 1 hour 15 min- Mr. ROCKEFELLER. In about 2 and more than $681 million over the utes, and the minority leader has used hours, I guess, every U.S. Senator will next 7 years. 30 minutes. be asked to vote on the future of a pro- Mr. DASCHLE. Mr. President, it gram that makes the difference be- I keep saying I wish this were some would be our intention to devote an tween security and insecurity, peace of kind of a dream. I keep expecting to hour on this particular amendment. mind and terror, health and illness, wake up and find something different. I Mr. DOLE. On each side? and sometimes, obviously, life or death wish this were some kind of a dream. Mr. DASCHLE. An hour on this side, for 30 million older Americans—includ- But the threat is real. It is written into and whatever amount of time the ma- ing 330,000 seniors from my own State the pages of the bill before the Senate jority would care to use. of West Virginia. unless we send it back. We offer this amendment, Democrats, Mr. DOLE. I ask unanimous consent I can only report what I read in the that we have an hour on each side on to give Senators one more chance to preserve Medicare, and stop the de- budget package. Mr. President, $270 bil- the motion to recommit. lion will be cut out of Medicare. That The PRESIDING OFFICER. Is there struction of one of America’s proudest, is fact. Mr. President, $225 billion will objection? most enduring achievements. be given away in tax breaks and give- Without objection, it is so ordered. We make a very straightforward aways. That is fact. Then there is the Mr. EXON addressed the Chair. proposition with our amendment to The PRESIDING OFFICER. The sen- save Medicare. $187 billion sliced out of Medicaid, sub- ior Senator from Nebraska is recog- This amendment calls for sending the ject to another amendment leaving it nized. Medicare part of this package back to in tatters as it is chopped into a block Mr. EXON. Mr. President, in view of the Senate Finance Committee, and grants which States are not ready, in the agreement just reached, we are pre- says Medicare should not be cut beyond fact, to handle, with virtually none of pared to offer the Medicare amend- the $89 billion needed to keep the trust the guarantees left for Americans hurt- ment. I hope that the chair will recog- fund solvent for another 10 years. That ing the most. nize the Senator from West Virginia means we want to restore the $181 bil- The response on the other side will be for whatever time he might need. I re- lion of unnecessary, dangerous Medi- that we are exaggerating, that we are mind him that we have an hour each, care cuts back to the trust fund, back trying to scare seniors, that we do not which can be divided between the man- to the health care system that seniors understand. depend on every single day of their agers of this particular amendment. Mr. President, this budget is a scary Mr. DOLE. Mr. President, we will lives. This amendment is a final oppor- budget. It is a very scary budget. I am later debate what the Senator from tunity, quite frankly, for our col- the very first to admit that I fear for Minnesota had to say. I have these fig- leagues on the other side of the aisle to my State. I fear for 330,000 older West ures, which show that about $477 mil- defend the Medicare trust fund from a Virginians. I fear for the health care lion per year would go into Minnesota mind boggling raid that will cut health system in America. I do not say that as to help families with children. I as- care benefits, increase seniors’ costs, a Democrat or as a Republican. I say sume those families with children and threaten the very existence of hos- that as a citizen of the State of West would be happy to have tax relief. pitals—a raid that is designed purely Virginia. I am afraid of the con- Mr. ROCKEFELLER addressed the and simply to pay for tax breaks tilted sequences of what it is likely we are Chair. in favor of the most affluent, com- going to do here, and hence this The PRESIDING OFFICER. The fortable households in this land. amendment. Chair recognizes the Senator from The reconciliation bill on the floor When the very people who are trust- West Virginia. cuts Medicare by $270 billion over 7 MOTION TO COMMIT ees of Medicare say only $89 billion is years. We all know that now. needed to keep the trust fund solvent Mr. ROCKEFELLER. Mr. President, I We have all been told that this will for 10 years, it is frightening to see a move to commit Senate bill 1357 to the save Medicare, keep it solvent, and, in- budget that sucks $270 billion out of Committee on Finance with instruc- deed, make the program stronger. the lifeline for older Americans. That tions to report the bill back to the Sen- Wrong, wrong, and wrong. The profes- is what older Americans are now com- ate within 3 days, not to include any sional experts in charge of keeping the ing to truly believe on their own, not day the Senate is not in session, mak- books for Medicare say exactly $89 bil- ing changes in legislation within that lion is needed to keep Medicare solvent because of what we say but because of committee’s jurisdiction to eliminate for the same number of years. what they are beginning to find out on any reductions in Medicare beyond the Hospitals, doctors, nurses, and other their own. Their fear is genuine and $89 billion necessary to maintain trust health care providers in every one of justified. fund solvency through the year 2006, our States believe with absolute cer- Today, we offer one last chance to and to reduce revenue reductions for tainty that cuts of this size will dis- Senators to protect Medicare and older upper-income taxpayers by the amount integrate the kind of health care cov- Americans. Vote for this amendment necessary to ensure deficit neutrality. erage that 30 million American senior to ensure the solvency of Medicare for The PRESIDING OFFICER. Was the citizens have counted on for over three another 10 years. There is plenty of Senator asking unanimous consent? decades. time for a bipartisan, thoughtful effort October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15617 to plan Medicare’s future for the 50 lavish giveaways to special interest ever you want to label it and do it with years beyond that period of time. Vote groups in the House and Senate propos- impunity. for this amendment to protect Medi- als. Insurance companies got what they This proposal is labeled ‘‘A Proposal care from highway robbery, from being wanted—the opportunity to get their To Save Medicare.’’ The very people used to pay for tax breaks, to take hands on Medicare and obtain billions who opposed Medicare when it was cre- money from seniors with an average in- of dollars in profits. The American ated 30 years ago—97 percent of the come of $17,500 and hand it over to Medical Association got what it want- present majority party voted against Americans with incomes from $75,000 ed—lower reduction in doctors’ fees Medicare because they said they did all the way up to millions. Vote for the and little on malpractice awards. The not believe in it—are now telling us right way to balance the budget and for list goes on and on. they are the ones who are going to save a balance in the Nation’s priorities. Clinical labs no longer have to meet it. We offer this amendment to remind Federal standards to guarantee the ac- If these folks were physicians in an every Senator that he and she can re- curacy of tests. Federal standards to emergency room and you came in with spond to the seniors, the families, and prevent the abuse of patients in nurs- an ingrown toenail, they would cut off the health care providers of America ing homes will be eliminated. Pharma- your leg and then boast about how who are scared by rejecting the part of ceutical firms will be given the right to your toe does not hurt anymore. this budget that casts a dangerous, charge higher prices for their drugs. The fact is, you do not have to cut deep, and dark shadow over Medicare— Because of this unjust Republican $270 billion to save Medicare. We that is, unless this amendment is plan, millions of elderly Americans should make an adjustment in Medi- passed. will be forced to go without the health care but it need only be about a $89 bil- Mr. President, I yield 5 minutes to care they need. Millions more will have lion adjustment. That is what the ex- the Senator from Massachusetts. to choose between food on the table, perts tell us is needed to extend the Mr. KENNEDY. Mr. President, if this adequate heat in the winter, paying the hospital insurance trust fund. So what Republican bill becomes law, it will rent, or paying for medical care. is this debate all about? It is about get- devastate senior citizens, working fam- Senior citizens have earned their ting money from the Medicare Pro- ilies, and children in every community Medicare benefits. They paid for them gram, with substantial cuts, in order to in America. It is a transparent scheme and they deserve them. The Republican provide tax relief to some other folks. to take from the needy to give to the attacks on Medicare will make life That is about pols and pals—politicians greedy. It makes a mockery of the fam- harder, sicker, and shorter for millions and their pals. ily values the Republican majority pre- of elderly Americans who built this Who gets the tax cut? Well, first of tend to represent. country and made it great. They de- all, let’s consider who gets the tax in- The Republican assault on Medicare serve better from Congress. Our Demo- crease? The Joint Tax Committee says is a frontal attack on the Nation’s el- cratic alternative protects senior citi- 50 percent of the people in this country derly. Medicare is part of Social Secu- zens and preserves Medicare, and that are going to pay higher taxes as a re- rity. It is a contract between the Gov- is just what the Rockefeller proposal sult of reconciliation bill. Here’s a ernment and the people that says, offers. multiple choice question—which people ‘‘Pay into the trust fund during your I see my colleague and friend from will pay higher taxes, those with in- working years, and we will guarantee North Dakota here. I will be interested comes in the lowest 50 percent or those good health care in your retirement if he would tell us what his understand- in the highest 50 percent? Guess what, years.’’ ing of the implications of this program It is wrong for the Republicans to the majority party has said to us that would be to those in rural America. break that contract. It is wrong for Re- the lowest 50 percent of the income publicans to propose deep cuts in Medi- The PRESIDING OFFICER. Who earners should pay higher taxes, but care in excess of anything needed to yields time? the top 1 percent shall pay substan- protect the trust fund. It is doubly Mr. ROCKEFELLER. Mr. President, I tially lower taxes. wrong for the Republicans to propose yield 5 minutes to the Senator from Where does all that money come those deep cuts in Medicare in order to North Dakota. from, to provide for the tax break to pay for tax breaks for the wealthy. The PRESIDING OFFICER. The the upper income folks? Out of the $270 The cuts in Medicare are too harsh Chair recognizes the Senator from billion cut in the Medicare Program. and too extreme. Mr. President, $280 North Dakota. As I have said repeatedly, this is all billion over the next 7 years—pre- Mr. DORGAN. Mr. President, we have about choices and priorities. If one miums will double, deductibles will been told by some that the $270 billion thinks Medicare has not been worth- double, the age of eligibility will be reduction to Medicare is not a cut, that while in freeing senior citizens from raised to 67, and senior citizens will be Medicare spending will still increase the fear of getting sick and not having squeezed hard to give up their own doc- under this budget reconciliation bill. the money to attend to their health tors and HMO’s. That is true. But, Mr. President, 200,000 care needs, then just decide there The fundamental unfairness of this new Americans every month become should be no Medicare Program. I re- proposal is plain. Senior citizens’ me- eligible for Medicare. More Americans spect that. I do not agree, but I respect dian income is only $17,750. Mr. Presi- are becoming eligible for Medicare and that. dent, 40 percent have incomes of less health care costs are increasing. But this is about choices. Those of us than $10,000. Because of gaps in Medi- We have determined what it will cost who believe there ought to be a Medi- care, senior citizens already pay too for the Medicare Program over the care Program that senior citizens can much for the health care they need. next 7 years based on these facts. The rely on —and we are the ones who Yet the additional premiums alone plan is to cut $270 billion from that started Medicare, still believe in it and under the Republican plan will add projection, so of course it is a cut. This believe it should be there in the fu- $2,400 to the health care of the average plan will end up offering senior citizens ture—we say, send this legislation elderly over the next 7 years. this kind of Faustian bargain: We will back, recommit it, and bring it back to The Medicare trust fund trustees offer you a deal in which you get less the Senate floor with an adjustment in have stated clearly $89 billion is all health care and you pay more for it. the tax cut and use that money to re- that is needed to protect the trust fund In our country, we have talked about duce the cuts to Medicare. for a decade—not $280 billion. The labels recently. When you go to the I had an amendment on the floor of Democratic alternative provides that grocery store, there is a label on the the Senate 2 days ago that was very amount. It will not raise premiums an food. Pick up a can of peas or a box of simple. It said, let us at least limit the additional dime. It will not raise pasta, and the label says what is in it— tax cut to those whose incomes are at deductibles a dime. It will give senior how much sodium, how much fat. You or below $250,000 a year. Just limit the citizens real choices, not force them to have to be honest and truthful about tax cut for at least those who make give up their own doctor. labels on a can of peas in a grocery less than a quarter of a million dollars The Republican Medicare plan also store. No such requirement exists here a year, and use the $50 billion in sav- deserves to be rejected because of the in the Congress. You can label it what- ings from that over 7 years to reduce S 15618 CONGRESSIONAL RECORD — SENATE October 25, 1995 the hit on Medicare—to reduce the hit his timeframe. It seems rather unusual for the average senior in West Virginia, on senior citizens. in speeches to be propounding ques- their income would be about $10,700 a Do you know what? We could not get tions and not wish to seek response. year, and 21 percent of that they al- that passed. It was a party-line vote. The PRESIDING OFFICER. Does the ready spend on health care. There is Every single Member of the majority Senator—— little left on the margin just to sur- party voted against that simple amend- Mr. ROCKEFELLER. No; the Senator vive. If this happens, the deductible ment. is not going to engage in this kind of will double, and the premiums will go This debate is about choices and pri- game. It is clear the majority does not up. All kinds of costs will increase, and orities. Our choices are to save Medi- want to answer some of these basic services I believe, particularly in the care for the long term. Our choice is questions. So at this point I will call rural areas, will decrease. not to provide tax cuts to the richest on the Senator from Iowa. I think that, No. 1, they are going to Americans and send the bill for those Mr. WELLSTONE. Mr. President, feel like they have been abandoned. tax cuts to some of the most vulner- while we are waiting I would like to be Whether or not they will be is yet to be able Americans. added as an additional cosponsor. fully determined. But they are going to By far the majority of the senior citi- The PRESIDING OFFICER. Who believe they are going to be abandoned. zens in North Dakota live on less than yields time? Hospitals in rural areas are going to $15,000 a year in income. To say to Mr. ROCKEFELLER. There are close down. They already are closing. those folks that we are going to take Democratic Members on their way That will pick up. from your Medicare Program so we can down here to speak. They have not got- So in a State which is 97 percent offer tax cuts to the richest Americans ten down here to speak, and I hope mountain and 3 percent flat, as the makes no sense at all. Those are prior- they recognize they will have to get Senator knows, they are going to feel ities that are not in keeping with what here very quickly. But I will yield my- cut off from health care, and in many the American people would like us to self 5 minutes. cases they will be cut off from health do. The PRESIDING OFFICER. The Sen- care because they will have no acute We need to balance the budget. We ator from West Virginia. care beds that will be available to them need to agree on a sensible way to do Mr. ROCKEFELLER. Mr. President, because of hospitals that are closing that. But we do not need to dismantle one of the things that most concerns down. programs that work. We do not need to me about all of this is the concept of So expenses will go up. Their fear injure the Medicare Program and place senior citizens being able to keep their will skyrocket. Their hospitals will a higher burden on senior citizens in own physician. And one of the things begin to close down. Doctors are going order to provide a tax cut to the rich- that most scares me, that puts genuine to become much more reluctant to go est Americans. That is a terrible choice fear in the heart not just of this Sen- into the rural areas of West Virginia and I hope Members of both sides of the ator but of the seniors that I represent, because of the cuts in the graduate aisle will vote for this amendment of- is the fear they are going to lose their medical education. You are going to fered by Senator ROCKEFELLER, Sen- right to choose their own doctor. find the kinds of doctors who have tra- ator KENNEDY, and others. I say this with a special feeling be- ditionally gone into rural areas to Mr. ROCKEFELLER addressed the cause, over the last couple of years, service seniors are not going to be Chair. when we were debating health care, trained because they are no longer The PRESIDING OFFICER. Who that was one of the things that was ab- going to be funded by the Republican yields time? solutely going to be able to happen. cuts under Medicare because of the Mr. ROCKEFELLER. Mr. President, I People are going to be able to have cuts in graduate medical education. their own doctor. But there is this ask the Senator from New Hampshire So I do not know any way that they enormous movement in the private sec- or the Senator from Michigan—a num- win. I can think of no way that they tor to move people into health mainte- ber of questions have been raised on win, and I can think of 10 ways they nance organizations to cut costs down. this side. We have been listening for lose. months now to the attack on an $89 bil- I read this, this morning, in the Mr. KENNEDY. Just finally, if part B lion cut as opposed to a $270 billion cut. newspaper, that Washington General goes up, that is directly deducted from I raised the question, what has hap- Hospital, now DC General, which is your Social Security check. Do you an- pened to the $181 billion? Is this really kind of the last resort for the people of ticipate that part B premiums will go going to a tax cut? What about the Washington DC, is thinking, now, of up, and, therefore, the Social Security doubling of the deductible in the pre- closing down, merging with Howard checks will be affected for those in miums? Things of this sort. University. That is happening now in West Virginia as well? I ask if any on the other side care to the private sector. I hesitate to even explain why they would vote against imagine what happens if you take tens Mr. ROCKEFELLER. It is not nec- my amendment, if, in fact, they are of millions of dollars away from them, essary to anticipate it. It is a fact. going to? I would just be interested if or institutions like them, over the next They will go up. They will double. they have anything they choose to say? number of years. Mr. KENNEDY. What is the impact Mr. GREGG addressed the Chair. How many essential services in our on the Social Security check? The PRESIDING OFFICER. The city—I know in the city of Chicago, I Mr. ROCKEFELLER. That is just Chair recognizes the Senator from—— know either seven or eight emergency more money out of pocket. Of course, Mr. GREGG. If the Senator will yield rooms of hospitals have closed down the ironic thing there is that 40 percent on his time, I will be happy to respond. under the current free-market system. of what it is that the majority party is The PRESIDING OFFICER. Will the And the exacerbation of all that, under cutting out of Medicare—$100 billion— Senator from West Virginia yield? these drastic Medicare cuts, is some- cannot even be used to help the trust Mr. ROCKEFELLER. I will not yield. thing which I think is truly terrifying. fund, cannot even be used because it is Because I would like to hear the re- Mr. KENNEDY. Will the Senator from part B. sponse from the majority party as to yield for a question? I yield to the Senator from Iowa. some of the reasons for their certainty Mr. ROCKEFELLER. I will be glad to Mr. HARKIN. I thank the Senator for as to the need for the $270 billion cut yield. yielding. He makes an excellent point which is causing so much consterna- Mr. KENNEDY. What is the Senator’s to the Senator from Massachusetts. tion throughout the land. understanding of the effect of this par- This comes right out of the Social Mr. GREGG. If the Senator from ticular provision in the Republican Security checks. That is where it is West Virginia is going to propound a budget bill and the impact on the peo- coming from. It is not coming from question to myself and the Senator ple of West Virginia, in terms of the some other place when an elderly per- from Michigan—— seniors there, their incomes, and what son gets that Social Security check. Mr. ROCKEFELLER. The Senator the Senator thinks would be the im- The amount that they pay in that does not have to answer. pact? monthly premium is going to double Mr. GREGG. I will be happy to re- Mr. ROCKEFELLER. I will answer under what the Republicans have be- spond to the question in the context of the Senator from Massachusetts that fore us. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15619 Mr. President, Halloween is just ple in Iowa who, before 1965, did not will be very brief. Then I will yield to around the corner. It is trick-or-treat have health care living in those small other Members—the Senator from New time. This is a trick-or-treat bill. The towns and communities. Their lives Hampshire, who has been in the chair. trick is on American seniors, and the were made better and healthier, and We have obviously been hearing a treats are the $245 billion tax cuts for their children’s lives were made better number of claims, accusations, and al- the wealthiest in this country. That is because Medicare came in and provided legations both about the motives of the what it is. They are saying we are try- health care for the elderly. Republicans as well as the substance of I delight in talking to young people ing to scare our seniors. It is not a the legislation before us. I know that about Medicare. They think it is just scare. It is an actual assault on the other speakers will get into more de- for the elderly. I do this a lot of times seniors of this country so that we can tail in responding, but I will just point with college students. I always ask treat the wealthiest. out a few things. What is this debate really about? Mr. them. I say, ‘‘How many of you have President, here is what the debate is grandparents that are on Medicare?’’ The comments with respect to the about right here on this poster. This is Most of them raise their hands. I say, condition of the part A trust fund are what the debate is about. Make no mis- ‘‘After you get out of school and you not just whimsical comments, they are take about it. Notice the date on these start earning money, for every $100 inaccurate comments, and they are words. October 24, 1995. That was yes- that you earn, how much of that very important comments to America’s terday. Last night in a speech to the money is going to go into the Medicare seniors. They should know today that American Conservative Union here in trust fund to pay for Medicare? Out of starting in 1996, for the first year the Washington, here is what the majority every $100 you earn, how much goes in part A trust fund will begin to run a leader of the Senate said: so that your grandparents get Medi- deficit. We are no longer talking about ‘‘* * * I was there fighting the fight—vot- care?’’ I tell you, you should hear the problems that are somewhere out in ing against Medicare—one of 12—because we answers I get: $20 out of $100, $10 out of the future that we cannot visualize. We knew it wouldn’t work in 1965. $100, and all kinds of wild guesses. are talking about concrete problems There you have it. The majority lead- When I tell them it is $1.45, for every that are going to be before us in the er is saying he is proud of the fact that $100 they earn, they spend $1.45 so their very immediate sense soon. he voted against Medicare in 1965 be- grandparents do not have to live with Just last year we heard from the en- cause he says, ‘‘We knew it wouldn’t them, so their grandparents get qual- titlement commission, a bipartisan work.’’ It will not work? Prior to 1965, ity, affordable health care, they are group of Members of Congress who re- only 46 percent of our elderly had amazed. ported to us that at the rate of growth health care. Today, 99 percent of our I asked them. ‘‘Do you think it is in entitlement spending in this country seniors have health care coverage. Tell worth it? Is it worth $1.45 out of $100 to in just 15 to 20 years, entitlement me it has not worked. I want the ma- put into the Medicare trust fund?’’ spending and interest on the Federal jority leader to come out here on the When you put it that way, they think debt alone would exceed all Federal tax Senate floor and tell the American it is a darned good deal. collections combined. These are not So, yes. We have some problems with public that Medicare has been a fail- problems that can be fixed by the old the Medicare trust fund, long term, ure, that it has not worked, that he process of finding a few extra dollars short term, and we can address those. was right in 1965 when he voted against and throwing them into the Medicare it. I wish he would tell me. I wish he The other side is always talking about the trustees; how the trustees said it is trust fund. These are problems that would tell me. I wish he would tell me can only be fixed through substantive about my own family. broke and we have to fix it. There is nothing in the trustees’ report that changes of the sort which we are offer- When my father was on Social Secu- ing here. rity and an ex-coal miner, we had no says we have to take $270 billion out of income. All he had was a Social Secu- Medicare. That is what the Repub- The Medicare Program is like a ship rity check. We lived in a small town of licans want to do to—give a $245 billion that is badly damaged. It is leaking 150 people. He had black lung disease. tax break for the wealthiest in our water. There are two ways you can deal He was in his seventies. He had no country. with the problem. You can pour more What our amendment does is send health care. We had no money. We had water over the side and try to bail your the bill back to Finance, and come no life savings. We had a little house way out, but that will not solve the back with an $89 billion cut in Medi- and a half acre of property. problem in a long-term sense. The al- Every winter he would get sick and care to make it secure but to keep it ternative is to repair the damage. That they would have to take him in to and to save it for our elderly. Let us is what we are trying to do because we Mercy Hospital in Des Moines, and, not have this trick-or-treat bill that do not want to just guarantee that thank God, the Sisters of Mercy would the Republicans have brought out here Medicare will be safe for an additional take care of him, and they would send to trick our elderly and to take away 1 year or 2 years. We want to change him home. It happened like clockwork their hard-earned savings and put it in the program to make it stronger, to every year. That was the only health a $245 billion tax break for the wealthi- protect it, to preserve it well into the care he had when he was sick as a dog est in our country. That is what this future. We want to give seniors the and they would have to rush him to the battle is about. Make no mistake about right to choose a program that is best hospital. But before he died, Medicare it. for them, and we want to make sure I yield back my time. I thank the came into existence in 1965. And the that we do that in a way that is not Senator for yielding me that time. just cover us for the next election but, last 2 years of his life was by far the Mr. ROCKEFELLER addressed the best years he had in his later years be- rather, in a way that truly protects Chair. seniors in the long-term sense. cause then he could get health care. He The PRESIDING OFFICER. The Sen- got it when he needed it, not later on ator from West Virginia. And so at this time, I will yield the when he was so sick. But he got it up Mr. ROCKEFELLER. Mr. President, floor and grant whatever time he may front, and he got it with his head held what is the time remaining? need to the Senator from New Hamp- high and not coming in the back door The PRESIDING OFFICER. The Sen- shire. to get charity. ator from West Virginia has 281⁄2 min- Mr. GREGG. I thank the Chair. I often think that if my father had utes remaining, and the Senator from had Medicare during the 1950’s and in I associate myself with the com- Michigan has 60 minutes. ments of the Senator from Michigan. I the early 1960’s, he would have lived Mr. ROCKEFELLER. Does the Sen- wish to respond to some of the points longer and he would have been a lot ator from Michigan wish to allocate made here by members of the other healthier. time to anyone? side who, I am sure, have done so with So the majority leader better not try Mr. ABRAHAM addressed the Chair. to tell this Senator that Medicare was The PRESIDING OFFICER (Mr. sincerity but who have been inaccurate to say the least. a mistake and that it has not worked. FRIST). The Senator from Michigan. I have seen too many in my own fam- Mr. ABRAHAM. At this time I yield Initially, let me state that the pur- ily. I have seen too many elderly peo- myself such time as I may need, and I pose of the Medicare reform which has S 15620 CONGRESSIONAL RECORD — SENATE October 25, 1995 been put into this bill is to signifi- First, they say there is a $270 billion the trustees never said that there had cantly strengthen the program which cut. That is an interesting concept. to be anything like $270 billion saved in has cared for our seniors well but Only in Washington would a program order to accomplish the rescue of the which was designed in the 1960’s and where you are going to increase spend- Medicare trust fund. I think my col- which is not functioning well as we ing by $346 billion over the next 7 years league from Iowa said there is no place move into the year 2000. It is like a 1960 be deemed a cut in spending. in the trustees’ report where that oc- automobile trying to drive on a turn- This is the chart, ladies and gentle- curs; all we need is $89 billion. pike in 1995. The fact is that the muf- men. Medicare spending goes up $349 I strongly suggest that my colleagues fler has fallen off, the pistons are not billion—I was off by $3 billion; I apolo- on the other side of the aisle read the working very well, the chassis is out of gize— $349 billion over the next 7 years. trustees’ report. I will read it for them. line, and it needs to be fixed. That is a cut in spending? It still re- I have to put on my glasses, though. In fact, it needs to be significantly mains, under that spending increase, the fastest growing, most significant The trust fund fails to meet the trustees’ strengthened, and that is what we have test of long-range close actuarial balance by proposed. The basic thrust of the Re- expenditure in the Federal budget. In an extremely large margin. To bring the HI publican plan is to give seniors essen- fact, if you compare the rate of growth program into actuarial balance even for the tially the same options which Members of Medicare spending over the next 7 first 25 years— years to the rate of Medicare spending of Congress have. Which happens to be their minimum over the last 7 years, you would have to Now, why is that so outrageous? We year—— conclude that over the last 7 years we are saying to seniors, ‘‘You shall have Mr. HARKIN. Will the Senator yield? choice. You shall have the ability to go ‘‘savaged it,’’ under the Democrat Mr. GREGG. I am sorry. I will not into the marketplace, if you wish, and terms, because in the last 7 years it yield. The other side did not yield. I choose other options than what you are grew to $923 billion spent on Medicare, will not yield. presently supplied under Medicare.’’ but over the next 7 years we are going We are not saying they have to do that. to spend $1.6 trillion on Medicare. Mr. HARKIN. I wanted to clarify a In fact, we are making it very clear, So clearly there is no cut here in point. under the Senate plan, if a senior de- spending on Medicare. In fact, per ben- Mr. GREGG. I am not yielding to the cides to stay with fee for service, which eficiary, spending on each beneficiary Senator from Iowa. is what most seniors have today, which will go up by approximately $2,000 be- To bring the HI program into actuarial is where they go out and choose their tween this year and what would be balance even for the first 25 years under the spent on that beneficiary in the year intermediate assumptions, would require an doctor individually, they can continue increase in the HI payroll tax of about 0.65 in that framework, they can continue 2002. We heard this equally rather inter- percentage points per employee or employer to do that. That is their decision. esting argument: Well, there are going each or a comparable reduction in benefits. What we are saying, however, is if to be more people in the system; there- What does that language mean in they should choose, they will have fore, more should be spent. Actually, English if you convert it to numbers? other choices. If they should choose, as demographically, there will not be a That means that the trustees are stat- like many people, their sons and significant increase in seniors going ing that under their most conservative daughters, who are in the workplace, into the system until we hit the year approach, on an actuarial basis, which to go with some group of doctors who 2007. So that is not an accurate state- they did not even agree should occur practice together in what is known as ment on its face. because they think it is too short of a a PPO, they will have that option. If We heard the statement of essen- timeframe, it would take $386 billion— they choose, as many of their sons and tially, well, but really, to meet the ob- $386 billion—of adjustment over a 5- daughters do today who are in the ligations of Medicare we have to spend year period in order to accomplish ac- workplace, to go with an HMO, where $8,700, or something like that, per sen- tuarial solvency. So this $89 billion you have an affiliation of doctors and ior in the year 2002. What does that number is specious on its face. hospitals and delivery systems, they presume? It presumes a rate of growth And then we have heard, ‘‘But the will have that option. of Medicare which would be 10 percent There are a variety of other options premiums of our seniors are going to per year for the next 7 years—10 per- double.’’ That is a very interesting ar- which we cannot even anticipate be- cent per year. If that is what my col- cause the marketplace has not created gument, because it just happens to ig- leagues on the other side of the aisle nore one major point. This plan that them yet that we will make available want for Medicare, they have just to our seniors. the Republicans have put forward does signed on to a prescription which the not increase the burden of the seniors And in giving our seniors those Medicare trustees have said will lead choices, what else do we do? We also on the percentage of premium that to bankruptcy, because it is that 10 they pay in the part B premium. say we are going to give you some eco- percent rate of growth that the Medi- Under the part B premium—I think nomic benefit from being a thoughtful care trustees, three of whom happen to this should be explained for those who purchaser of your health care. Under be members of this administration, may not be familiar with it; I know the Senate plan, if a senior chooses a stated was totally unsustainable—to- plan which delivers the same or better tally unsustainable—and that if it is most in this room are—but under the care than they are presently getting allowed to continue at that rate, if part B premium, the senior citizen from their fee-for-service plan but hap- Medicare is allowed to continue to pays 31 percent of the cost, the general pens to cost less, we are going to allow grow at an annual rate of 10 percent, taxpayers, specifically the senior’s the senior to keep that savings. We are the trust fund becomes bankrupt. children and grandchildren who are going to create an incentive amongst They gave us a rather definitive working, pay 69 percent of the cost. seniors to look at other options. We are chart which reflects that, and that is Under the Republican proposal, the not going to say they have to look at this chart here. It is a plane crash, la- senior citizen will continue for the them. We are not going to say they dies and gentlemen. A 10-percent rate next 7 years to pick up 31 percent of even have to take them. We are simply of growth leads to insolvency in the the cost of his or her part B premium, going to say you have that option. trust fund in the year 2002. So when my and his children or her children and his So what is so dastardly about giving colleagues on the other side of the aisle or her grandchildren will continue to seniors the same option which Mem- say, ‘‘But you are simply not increas- pay 69 percent of the cost of the part B bers of Congress have? I do not under- ing spending enough when you are in- premium. stand it myself. But the other side is creasing spending by $2,000 per bene- We do not change that. Sure, it goes outraged for some reason. I think their ficiary over the next 7 years, you have up. Health care costs go up. Of course outrage functions more from politics to increase it by another $2,000,’’ what it is going to go up. But as a percent- than from substance. they are really saying is we want insol- age of the cost that is being borne be- Let us talk a little bit about sub- vency of the trust fund. tween the senior citizen and their chil- stance, about some of the points that We heard some other rather interest- dren who are paying the taxes, the sub- have been made by the other side. ing comments, something about, well, sidy, it will remain the same. Now, if October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15621 we are to follow the logic of my col- ten the number for married folks—then our number than they are to the 10-per- leagues from other side of the aisle, you will not get any more subsidy. cent which my colleagues on the other what they are saying is that the sub- What is wrong with that policy, my side of the aisle seem so enthused for sidy that the senior citizens’ children friends? Talk about income transfer because the administration under- should pay and their grandchildren from moderate income to wealthy, this stands that it cannot absorb a 10 per- should pay should go up. part B premium, as it is presently cent rate of growth in the Medicare That is the only logical conclusion structured, is the ultimate in the trust fund. from what they are saying. They are wrong way to approach income trans- So we have put forward a plan which essentially saying that the senior citi- fer. So we corrected that. will lead to a slowing of the rate of zens should receive a greater subsidy This whole premium argument is growth of the Medicare trust fund to from their children and their grand- really inaccurate, as I mentioned a 6.5 percent approximately. And how do children, so that they will not be pay- number of other points they have we do it? We do it by using the market- ing 31 percent of the cost of their part made. And then I think the core issue place and by giving seniors more B premium, so that they may be pay- here becomes this question of solvency. choices, more options, a stronger ing 28 percent or 25 or 26 percent of How do you make the trust funds sol- health care system, rather than a that cost. Who is going to pick up the vent so that seniors will have it, so weaker health care system. From my difference? The senior citizens’ chil- that their children will have it? And standpoint, that is what reforming and dren and grandchildren. what we have proposed is to put in improving and strengthening the Medi- Their commitment, their subsidy to place a system which generates a mar- care system is all about. That is what that premium paid for by the children ketplace competition atmosphere this whole issue is all about. and grandchildren of seniors will go which will help control the rate of We have heard a lot of misrepresenta- from 69 percent to 70 percent, 75 per- growth of costs. tion on this by the other side of the cent. I do not know where they are As I mentioned earlier, the trustees aisle already. We have only been at going to end that number. But essen- have made it very clear that a 10-per- this for, what, about 45 minutes of de- tially they are pandering, on that side cent rate of growth of the Medicare bate from the other side of the aisle, of the aisle, to one constituency at the trust fund leads to bankruptcy. It leads and we have already heard about seven expense of another constituency. to this horrendous event. It seems that major misrepresentations, all of which It is basically generational politics some of my colleagues on the other I just noted. that are being played. What we have side are willing to accept a 10-percent I would hope, however, as we go into said in our bill is, ‘‘Listen, there’s a rate of growth. The trustees were not. the rest of this debate, that we will fair distribution of subsidy between I am not. Republicans on this side are have some integrity in the discussion, seniors and their children, the wage not. we will get back to talking about what earners and the payers of their subsidy. So what we have proposed is to try to we need to do in order to make the Sixty-nine percent is paid for by their slow that rate of growth from three Medicare trust fund solvent, and get off children; 31 percent by the seniors.’’ We times the rate of inflation to twice the of this issue of trying to scare seniors are saying we should continue it in rate of inflation. That still is a very through politics, versus addressing the that reference. We are not suggesting generous increase. As I mentioned, issue through substance. it be changed at all. there is a $349 billion increase in spend- I thank the Senator from Michigan I think most seniors in this country ing in the Medicare trust fund over the for his courtesy and for his time and would view that as a reasonable ap- next 7 years. It is not a dramatic re- would yield the floor. proach. I find very few seniors in this duction in the rate of growth. You are The PRESIDING OFFICER. Who country who wish to pass on to their still talking about a rate of growth yields time? children either, one, a country that is which is twice the rate of inflation. In Mr. ROCKEFELLER addressed the bankrupt, two, a Medicare trust fund fact, if you compare it to what is hap- Chair. that is bankrupt, or, three, feel their pening in the private sector in health The PRESIDING OFFICER. The Sen- children should be hit with a further care, it happens to be six times the ator from West Virginia. charge for bearing the cost of their rate of growth of premium costs in the Mr. ROCKEFELLER. I yield 30 sec- health care. private sector today. onds to the Senator from Iowa. What else do we say in this plan? We Last year, for example, the health The PRESIDING OFFICER. The Sen- say, let us ask the wealthy senior citi- care system which all of us here in the ator from Iowa. zens to pay the whole cost or at least a Congress benefit from had actually a Mr. HARKIN. Mr. President, I just larger percentage of the cost of the drop in the rate of growth of our pre- have to respond to my friend from New part B premium. You explain to me mium costs. Why? Because there was Hampshire. He is absolutely wrong. why a person who is working 40, 50, 60 competition, because there was choice. Here is a statement of a managing hours a week on a computer assembly What we are suggesting is that seniors trustee of the Social Security trustees. line in New Hampshire or at a res- should have those same types of Let me just read this paragraph: taurant or at a garage, why that person choices that we as Members of Con- Simply said, no Member of Congress should should have to subsidize the top 100 re- gress have, and as a result we will vote for $270 billion in Medicare cuts believ- tirees from IBM last year. But that is hopefully see a significant drop in the ing that reductions of this size have been exactly what is happening. rate of growth in premium costs. recommended by the Medicare trustees or Under the present law, the top 100 re- What we are projecting is a drop of 30 that such reductions are needed now to pre- tirees from IBM may make $150,000 a percent. We are not even expecting to vent an imminent funding crisis. That would year when they retire. And they have a get the same drop as in the Congress. be factually incorrect. 69-percent subsidy of their part B pre- But this is a reasonable drop. That is So I say to my friend from New mium paid for by John and Mary Jones what this chart shows. Hampshire, he is incorrect. The trust- who are working real hard just to Instead of a 10-percent rate of ees never said, and in fact here is a make ends meet and take care of their growth, which my colleagues on the statement just to the contrary, as the families. It is not right. other side seem to be ready to endorse, managing trustee said, it would be fac- We have corrected that in this bill. which leads to bankruptcy, we are say- tually incorrect to say that $270 billion We have said if you have more than ing let us have a 6.4-percent rate of in cuts were recommended by the $75,000 as income as an individual, growth. trustees. That was never the case. more than $120,000 of income as a mar- Ironically, the President, when he Mr. ROCKEFELLER. Mr. President, I ried couple, then you have to begin sent his budget up here in June—it was yield 4 minutes to the Senator from paying a higher percentage of your just a sheaf of papers that did not hap- Louisiana. part B premium. In fact, if your in- pen to make a lot of sense in other The PRESIDING OFFICER (Mr. comes get into the real high levels, areas—the numbers in the Medicare GREGG). The Senator from Louisiana. $120,000, I think it is, for individuals area were not that far from our num- Mr. BREAUX. Mr. President, I thank and $150,000 or $160,000—I have forgot- ber. In fact, they were a lot closer to the manager for yielding the time. I S 15622 CONGRESSIONAL RECORD — SENATE October 25, 1995 was in the New Orleans Airport coming same old status quo. It just has less long-term problem unchecked. If you back from Washington one time during money in it, by $270 billion. doubt it, just look at the cost of man- the debate on health care 2 years ago. Is that needed? No. It is very clear dated programs this year versus the This elderly lady came up to me in the that actuaries—these are the guys who cost of mandated programs at the end airport and said, ‘‘Senator, are you all wear green shades. They are not Demo- of 2002. It is one of the biggest reasons working on health care in Washing- crats or Republicans, they are actuar- that I seriously doubt that this body or ton?’’ ies, CPA’s. What do they say we need the House is going to be able to hang in I said, ‘‘Yes, ma’am, we sure are.’’ to do to fix Medicare? It is very clear. there and vote these kinds of cuts over She said, ‘‘No matter what you do, The actuary for Health and Human the next 7 years. please don’t let the Federal Govern- Services says clearly you can fix Medi- At the end of this budget cycle, at ment take over my Medicare.’’ care to the year 2006 by reducing the the end of this 7-year period, we will This was a senior citizen who spending $89 billion. have 25 percent of our budget for appro- thought the Medicare Program was Guess what the Democratic package priated items. That will be $400 billion working just fine. She thought it was does? It reduces spending by $89 billion, this year for defense and nondefense, the best thing she ever had. It was tak- not $270 billion, because that is not and anybody with just a rudimentary ing care of her and taking care of her needed. You wonder why the people understanding of the budget would family. But it showed how concerned come up to us in airports and on Main know it is unlikely that we are going they were about Congress messing with Street and say, ‘‘Don’t let Congress to be able to get the job done. Medicare. take over Medicare,’’ because they are First of all, Mr. President, it does, as Today, Congress is messing with scared to death we might do exactly many have already said, try to come up Medicare in a way that is not nec- what this plan does: It rips it up, it with savings in the short term in order essary and is not essential. cuts it up in an extreme manner and to be able to fund tax breaks. It leaves Mr. President, 77 percent of the peo- not to fix it. There is not a real innova- the long-term problem unchecked. Do ple in my State of Louisiana, who are tive idea in their plan, but there are a not waste another million on a biparti- on Medicare, earn less than $15,000 a lot of cuts, and the cuts are more than san commission. There is one that year. Do we wonder why a lady would are necessary to fix it. come up to me in an airport and say, That is clear; that is simple. Non- Jack Danforth and I did. It will not be ‘‘Please don’t mess with Medicare’’? political people have said it, and we pleasant when you look at the rec- Because if we destroy Medicare, where should get about the business of fixing ommendations. The long-term rec- are these people going to go? it with $89 billion, which is difficult to ommendations to phase in changes con- I understand that for some, earning do but must be done, and then I will tain many of the things that are asked $15,000 a year is something that they do suggest a bipartisan commission, with for by the Republicans, only even more not even think exists, that nobody can our colleagues on the Republican side so, but over a long period of time, giv- be that poor. I say that because I no- working with us to come up with a ing people a chance to plan. ticed a quote in the paper this morning long-term fix. It ‘‘ain’t’’ going to get One of the reasons that seniors are from one of our colleagues in the other done by themselves, and we are not frightened by this whole debate is, as body which I think is just terrific and going to be able to do it by ourselves. many people have already said, their it says something about how some peo- Do the short-term fix, appoint a bipar- incomes tend to be low. They have a ple think. A Congressman from North tisan commission and get the job done. difficult time purchasing insurance and Carolina said: Mr. DORGAN. Will the Senator buying health care. It tends to be a When I see someone who is making any- yield? We saw somebody stand up with very high percentage of their dispos- where from $300,000 to $750,000 a year, that’s a chart on the other side of the room able income, and they are terrified that middle class. and say, ‘‘What cut? We are not cutting tomorrow they might receive some Middle class? It is not middle class in Medicare.’’ Can the Senator respond to health care bill that they are unable to Louisiana. It is not middle class for 100 that? pay. percent of the people who are on Medi- Mr. BREAUX. It is $270 billion less Second, as far as generational war- care in Louisiana who earn less than money than they had last year. You fare, it is the concern of their children $15,000 a year. I would agree with the can call that whatever you want to call and of their grandchildren that they Congressman if middle class is people it, but if it looks like a duck, walks may get stuck with these bills as well. earning up to $750,000, we do not even like a duck and quacks like a duck, it So this terror that seniors feel does not need Medicare. Let them go buy pri- is probably a duck where I come from. come as a consequence of Democratic vate insurance. Maybe let them buy a This is a duck. rhetoric, it comes as a consequence of hospital if they earn that much money, The PRESIDING OFFICER. The time an honest evaluation of income and or buy their own doctor. of the Senator has expired. likely expenditures. But, Mr. President, seriously, we are Mr. ROCKEFELLER. I yield 5 min- Third, I find objectionable the deals talking about people who can least af- utes to the Senator from Nebraska. that were made with the AMA, particu- ford to be left without some kind of se- Mr. KERREY. Mr. President, I hope larly on the House side, to get an curity in their senior years with Medi- the Senator from Louisiana was not re- agreement over there. ferring to me in his animal compari- care. Fourth, it does not reform the sys- Why is the Republican plan cutting son. tem and really use the market and $270 billion? Very simple, no magic I regret to say I support this amend- allow competition. Mr. President, $152 about it: They need it to pay for the ment, not because I believe that it is billion of the savings comes from cuts tax cuts. wrong but because I believe Medicare to providers; $71 billion in increased The House created this. It was cre- does need to be reformed. I do not be- payments by beneficiaries; $43 billion ated over there. It was conceived over lieve, in fact, we need another biparti- by reducing payments to HMO’s; only there. It was born over there. They de- san commission. We have a bipartisan $2 billion come from increased use of cided they wanted to put the cart be- commission recommendation that lays competitive market forces. fore the horse: out what needs to be done long term ‘‘We are going to decide if we want to with Medicare. Unfortunately, in the Next, rather than taking a step to- cut taxes by over $300 billion. You budget resolution, we do not do that. ward universal coverage, which we know what, we have to pay for it.’’ Unfortunately, in this reconciliation ought to be doing if we want to have a ‘‘How are we going to pay for it?’’ agreement, we do not do it. market economy in the late 20th cen- ‘‘Oh, I have an idea. Let’s cut Medi- What we have done is we have identi- tury, when we say to businesses, ‘‘Go care, let’s cut Medicaid, let’s cut fied a short-term need, which is to out there and be competitive, try to earned income tax credit, let’s cut wel- come up with money to fund a series of keep your costs under control and still fare. By golly, that will do it.’’ tax breaks, and we are using, among have a civil society,’’ we have to have So, today we have $270 billion taken other things, significant reductions in universal coverage. out of Medicare, not to fix Medicare. Medicare over the next 7 years to do it. Republicans now have reached a con- This is not reform of Medicare. It is the And worse, Mr. President, we leave the clusion that they want to preserve October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15623

Medicare. I suspect Leader DOLE will time, I am going to ask unanimous Mr. BENNETT. Mr. President, I come and say that his remark last consent that it be printed in the found this interesting because it dem- night was taken out of context. If you RECORD. onstrated what is happening to politi- want to preserve Medicare, that means The headline says: ‘‘Clinton Recruits cal debate in this country when we are you recognize at some point the mar- Campaign Team of ‘Nasty Boys’ With not debating the merits or demerits of ket does not work. Well, it does not Reputation as Tough, Savvy Hired the proposal before us. Instead, we are work for an awful lot of people—over a Guns.’’ mounting 30-second spots to attack million in 1994 alone—who moved into Then the lead paragraph says: each other in the spirit of terror. That the ranks of the uninsured. Gearing up for 1996, President Clinton is is not my word, but the word of the We need a safety net that provides fielding a motley crew of re-election strate- man whom the President of the United universal coverage. The problem, of gists with reputations for shrewdness and States has chosen to advise him on this course, is that to be able to do that, we ruthless tactics. A mainstay on his team, particular issue. are going to have to dramatically New Yorker Henry Sheinkopf, readily boasts, ‘‘I subscribe to terror.’’ By contrast, Mr. President, I am change the Medicare/Medicaid income aware of some focus groups that have tax deduction and the VA. That is a very interesting statement, Mr. President. I have had it put on a been held in an attempt to understand Next, I have heard it said that we this issue, where the Republican plan want to give seniors exactly what Fed- chart—we are debating this whole thing with charts—‘‘I subscribe to ter- was described in as neutral a term as eral employees have. Please, let us not possible and the Democratic proposal is overpromise again. Our salaries are ror.’’ He goes on to say in the article: described in as neutral a term as pos- $133,000 a year. Look at the compari- sible; they were presented to a group of sons. We pay $44 a month; seniors pay Terror tends to work . . . because it is so easy to make people hate. senior citizens in a focus group, with $46, and under the GOP plan, it goes to the first called the Smith plan and the Now, back to the article, quoting: $89. We have unlimited hospital care; second one called the Green plan. Dis- theirs is limited. Our prescription Mr. Sheinkopf doesn’t deny the remarks, cussion was held, without any preju- drugs are covered; theirs are not cov- but says they were taken out of context. He says he was addressing the strategy for a dice one way or the other. When it was ered. We have a deductible of $350; they over, they found that by about an 80 are at $816. Here are more extensive noncandidate campaign . . . A noncandidate campaign. That is percent to 20 percent margin, in vir- services under preventive services, an tually every section of the country out-of-pocket of $37.50. We do not want very interesting because what we have running on the airwaves today is a se- where this attempt has been made to to say to seniors—and I have heard it find out people’s reaction, the Smith said and I know the marketing is going ries of television ads that are terroriz- ing our senior citizens, and this is a plan out-polled the Green plan. And on and this has been tested very well. only then was it unveiled to these peo- Let us not overpromise here. If we say noncandidate campaign. Mr. Sheinkopf was the architect of this summer’s un- ple that they had, in fact, by a vote of to seniors what we are doing in this 4 to 1, subscribed to the Republican po- proposal is giving you what Federal precedented ad campaign on crime. This is the next statement that I sition rather than the Democratic posi- employees have, there is going to come tion on this issue. a substantial and a rude awakening. have here on a chart. He is part of the In conclusion, Mr. President, I hope group that wanted to start the Medi- I find this very encouraging for this that in fact a majority does vote for care ads early this summer. Quoting reason, Mr. President. I go back to the this amendment. I hope we recommit now: debate in the last Congress over health this to the Budget Committee and Fi- The team wanted to attack the GOP with care when the President unveiled his nance Committee. I would love to par- Medicare ads in early September . . . they health care proposal. A very substan- ticipate now in a bipartisan effort to got the go ahead. tial majority of Americans were in control the long-term cost of entitle- Again, he said, ‘‘I subscribe to ter- favor of it. We on this side of the aisle ment and mandated spending. I think ror.’’ That is the statement of the felt very lonely in our opposition to it, we are extinguishing our capacity to President’s strategist on noncandidate but we were sustained by this knowl- invest in education, transportation, re- campaigns. edge: The more people that knew about search, child care—those things you There is more in the article. I will the President’s plan, the less they ap- need in an active economy. quote a few before I turn directly to proved of it. The more the information Mr. President, most particularly, I the Medicare debate. But this dem- got out, the more the poll numbers fell. hope there can be a bipartisan consen- onstrates what we are faced with, as So that by the time we finally got to sus begin to emerge as a result of see- far as the ads currently running on tel- the resolution of that issue on this ing the value of Medicare, that we need evision are concerned. Quoting: floor, they had switched completely. a new safety net that says if you are a Already, friends of the administration peg Instead of being 2 to 1 in favor of the citizen or legal resident, you will know these mercenaries ‘‘The Nasty Boys.’’ Like President’s plan, they were 2 to 1 in op- with certainty that you are going to be Mr. Clinton, many of them are accused of position to the President’s plan. covered. lacking an ideological rudder, allowing them Based on the research that has been This proposal takes us away from to roam from left to right on policies. done in this nonideological fashion, we those goals rather than toward it. Elsewhere in the article, it says: find that the more people know the Therefore, I support the amendment of- Elizabeth Holtzman will never forget when facts of the Republican proposal on fered by the Senator from West Vir- she first heard about Mr. Sheinkopf. The Medicare, the more they support it. So ginia. I hope that a majority of Demo- former New York congresswoman was run- that, over time, the American people— ning for Brooklyn district attorney in the crats and Republicans who understand as they did with President Clinton’s the short- and long-term proposal will 1980s when, she says, her opponent fired off one of the ‘‘nastiest, sexist ads’’ she had ever plan—are going to move in the direc- vote for this amendment so we can, heard. . . . She found out the spot was cre- tion of supporting the Republican posi- hopefully, reach some kind of biparti- ated by Mr. Sheinkopf. tion. san consensus. Her reaction? She hired him for her next Right now, if you look at the polls, Mr. ABRAHAM. Mr. President, how campaign. they are virtually identical. If you poll much time is left? ‘‘He’s very creative,’’ Mrs. Holtzman says. The PRESIDING OFFICER. The Sen- And, like other members of this media team, Americans, about 50–50 are saying we ator from Michigan has 40 minutes left. he’ll bat for most anyone—as long as they are for the Democrat position or we are The Senator from West Virginia has are paying clients. for the Republican position. That would bother me a great deal if I did 151⁄2 minutes. Mr. President, I ask unanimous con- Mr. ABRAHAM. At this time, I yield sent that the entire article be printed not know that the more people know 9 minutes to the Senator from Utah. in the RECORD at the conclusion of my about the particulars of our plan, the Mr. BENNETT. Mr. President, on remarks. more they support it. Monday, October 16, there was a very The PRESIDING OFFICER. Without So I urge my fellow Republicans to interesting article that ran in the Wall objection, it is so ordered. stand firm with where we are, knowing Street Journal. At the appropriate (See exhibit 1.) that time is on our side, that facts are S 15624 CONGRESSIONAL RECORD — SENATE October 25, 1995 on our side, and do not be terrorized by sissippi Sen. Trent Lott. Mark Penn, a part- lead. He won the race, but by two percentage the deliberate program of terror that is ner in Penn & Shoen, worked for maverick points. ‘‘We laughed at that poll,’’ recalls being mounted primarily out of the Ross Perot in 1992, and the firm does consid- Mr. Bowen. ‘‘It was just part of their tactical White House and from the Democratic erable work for corporations. strategy to show him way in front; that Thus far, the consultants, with Mr. Morris wasn’t the case.’’ National Committee. calling the shots, have helped bring Mr. Clin- The poll was five months before the elec- I yield the floor. ton back to life after last fall’s GOP sweep. tion, and undecided voters later turned EXHIBIT 1 ‘‘They have presented a disciplined and con- against the incumbent, says Douglas Schoen. [From the Wall Street Journal, Oct. 16, 1995] trolled message,’’ said Democratic strategist ‘‘We always thought it would be close,’’ he Robert Beckel. ‘‘It has put the president says, noting a poll closer to the election CLINTON RECRUITS CAMPAIGN TEAM OF back in the dance.’’ showed a tighter contest. ‘‘NASTY BOYS’’ WITH REPUTATION AS TOUGH, The new Clinton campaign team raises SAVVY HIRED GUNS PUSH FOR BUDGET PLAN concerns among presidential scholars. While Even Mr. Morris’s critics tip their hats to (By Michael K. Frisby) applauding their cleverness, experts search his pushing the president to offer up a bal- WASHINGTON.—Gearing up for 1996, Presi- for the intellectual thrust. Mr. Clinton likes anced-budget plan last spring, a move that dent Clinton is fielding a motley crew of re- to be compared to President Truman, who embittered other Democrats. Mr. Morris ar- election strategists with reputations for overcame a hostile Congress to win re-elec- gued it would gain the president credibility shrewdness and ruthless tactics. A mainstay tion. But Fred Greenstein, a Princeton Uni- on economic issues, opening the door for him on his team, New Yorker Henry Sheinkopf, versity historian, notes Truman’s comeback to now hammer the GOP for squeezing Medi- readily boasts, ‘‘I subscribe to terror.’’ was fueled by the intellectual energy of care and education funds without appearing Already, friends of the administration peg Clark Clifford and others—not image-mak- to be a tax-and-spend Democrat. these mercenaries ‘‘The Nasty Boys.’’ Like ers. And that, he says, is missing from a Mr. Sheinkopf was the architect of this Mr. Clinton, many of them are accused of Clinton team searching for the best political summer’s unprecedented ad campaign—16 lacking an ideological rudder, allowing them answer. months before the election—portraying Mr. to roam from left to right on policies. Bill ‘‘Maybe you need someone with sub- Clinton as tough on crime. Using his connec- Lacy, a strategist for GOP frontrunner Sen. stantive fiber to give you advice,’’ Mr. tions, the former New York City police offi- Robert Dole of Kansas, says he expects ‘‘a Greenstein says. cer lined up cops around the country for the scorched earth campaign’’ from this group. ads. The PRESIDING OFFICER. Who The Clinton-Gore re-election campaign Inside the White House, the acceptance of yields time? will be headed by a prominent Democrat, Mr. Morris and his crew is growing, but there perhaps a cabinet member, who will set the Mr. BREAUX. I yield 30 seconds. are still spats. The team wanted to attack grand blueprint with the president. But Mr. WELLSTONE. Mr. President, I the GOP with Medicare ads in early Septem- every campaign relies on its savvy strate- say on behalf of my good friend, Sen- ber, but were blunted by Deputy Chief of gists and creative media team to fire up vot- ator HARKIN, and myself, the Senator Staff Harold Ickes, who doesn’t want to get ers. And Mr. Clinton has loaded his campaign caught short on campaign cash next sum- from Utah says the more people learn with the most aggressive war counselors mer. By late September, however, the media about the plan—we just got there. available. team got the go-ahead. There has not been one hearing. How Led by Dick Morris, of Connecticut, the Aides say that while Mr. Clinton values his many pages are there? president’s media-message team also in- hired guns, the president is comfortable with cludes the New York polling firm Penn & Mr. HARKIN. There are 2,000 pages. Mr. Ickes controlling the purse strings and Schoen Associates Inc. It’s anchored by Mr. WELLSTONE. Mr. President, taking charge of relations with the Demo- Washington veteran Robert Squier, a fire- 2,000 pages, and people do not know cratic base—unions, liberals and minority brand himself, who plays a calming role on what is in here. We did not have ex- voters. this feisty group. ‘‘We are putting together The team may prepare one more media hit perts come to committee. People in an exciting creative team that can pick up before January; it is likely to be either a Iowa, Minnesota, and across the coun- where the strategic thinking leaves off,’’ Mr. package on the budget battle or about Mr. try—— Squier says. Clinton cherishing the same values as aver- Mr. HARKIN. How many days of It is Mr. Sheinkopf, a whiz at low-budget age Americans. ads, who has raised the most eyebrows. A hearings have we had? Some Democrats privately raise concerns year ago, he shared his trade secrets at a Mr. WELLSTONE. Not anything. about whether this crew is ready for prime convention of political consultants and Mr. HARKIN. Zero. The American time, however. Mr. Morris, for one, is de- talked about using fear to win campaigns. people have no idea what is in this. scribed by many as brilliant, but has his Mr. Sheinkopf told the gathering, ‘‘Terror share of bloopers. Last year, he produced an Mr. WELLSTONE. The people do not tends to work . . . because it is so easy to ad for Tennessee GOP gubernatorial can- know about this. make people hate.’’ didate Don Sundquist that people still talk Mr. JOHNSTON. Mr. President, 23 Mr. Sheinkopf doesn’t deny the remarks, about. It was a high-tech TV spot with a car years ago I came to the U.S. Senate as but says they are often taken out of context. driving in a video game, crashing into bar- He says he was addressing the strategy for a what we call a Southern conservative. riers with signs carrying the theme that the noncandidate campaign, such as a referen- There are not as many of us left as I candidate was against taxes. dum fight, in which the clients don’t have would like there to be, but throughout ‘‘It didn’t have the desired effect,’’ con- much money. ‘‘I’m tough, but I’m not ruth- that time, Mr. President, I have frank- cedes Ray Pohlman, the campaign manager. less,’’ he insists. ‘‘I fight for my clients.’’ But in the next breath, he says Mr. Morris is ly given my party some consternation Elizabeth Holtzman will never forget when fabulous at deciphering polling data and by opposing some things which I she first heard about Mr. Sheinkopf. The crafting a message. And Mr. Sundquist won thought were too liberal, particularly former New York congresswoman was run- the election. when it came to what I thought was in- ning for Brooklyn district attorney in the The strategizing on the Clinton campaign 1980s when, she says, her opponent fired off come redistribution. goes right down to bringing in an outside ex- one of the ‘‘nastiest, sexist ads’’ she had ever I can recall opposing the CETA Pro- pert to do the video work. Mr. Morris, who heard. ‘‘The voice said, ‘She’s a very nice gram because I thought it was sort of a was responsible for hiring Mr. Sheinkopf, girl. I might like her for my daughter, but make work program that would take also recruited Marius Penczner, who runs a not district attorney,’ ’’ Ms. Holtzman re- video production house in Memphis, Tenn. money and give it to poor people, just calls. She found out the spot was created by Mr. Penczner, whom Mr. Morris met on the sort of without working. Mr. Sheinkopf. Sundquist campaign, is known more for Now, Mr. President, in spite of the Her reaction? She hired him for her next country music videos than political work. fact that I remained through all those campaign. Mr. Clinton has marveled at the quality of ‘‘He’s very creative,’’ Ms. Holtzman says. 23 years as a Southern conservative, I Mr. Penczner’s Oval Office video shots, which And, like other members of this media team, oppose strongly this program. are in most of the president’s TV spots. he’ll bat for most anyone—as long as they Mr. President, this program goes in are paying clients. CONTROVERSIAL POLL the exact opposite direction because it Mr. Sheinkopf’s claim to fame is hot radio Mr. Morris also picked Penn & Schoen as is income redistribution from bottom spots for African-American candidates, many the campaign pollsters, virtually ousting old to the top. of whom are liberals. Yet, he and his partner, Clinton hand Stan Greenberg. Their results, Mr. President, I will be leaving this Gerry Austin, in the wake of the riots after however, are sometimes controversial. Their institution in another year. I must say the Rodney King case, worked on behalf of poll put then-Ohio Rep. David Mann up 28 Los Angeles police officers fighting a reform points in his Democratic primary fight that we are leaving, if this passes, we measure on the ballot. Mr. Morris, a long- against State Sen. William Bowen. A short are leaving in its wake a real difficult time associate of Mr. Clinton, has worked for time later, fund-raising letters went to polit- situation for people of modest means in conservative Republicans, such as Mis- ical action committees, citing Mr. Mann’s this country. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15625 While we are taking care of those balance of $8.4 billion in the year 2005. fund, and we do not want to do it in who are better off—the tax credit for This would mean that Medicare could small steps that will only cost more children goes up to $110,000, people with not pay its bills on time in the year and create greater hardship. It appears those incomes—the top 1 percent, Mr. 2005. to do nothing, to be candid, to slow President, in this country, are going to Even more alarming under the Demo- Medicare part B spending, which is a get almost $5,000 per person. crats’ proposal, CBO says that the Med- significant problem. For that reason, I Mr. President, what this does to poor icare trust fund could not even pay a must oppose the amendment. people, what it does to people of mod- full year’s Medicare benefits starting I yield back the floor. est means in my State—this is not in the year 2001. Mr. President, that is The PRESIDING OFFICER. Who scare tactics, Mr. President—we are only 6 years from now. yields time? going to have 4,700 fewer people on In contrast, CBO says that our pro- Mr. ABRAHAM. Mr. President, I in- Head Start, school loans are going to posal meets the Medicare trustees. Re- quire as to how much time is left at be restricted, summer jobs are elimi- member, those trustees are primarily this point? nated by the thousands in my State. appointed by the President. It says it The PRESIDING OFFICER. The Sen- There will be 406,000 children in Lou- meets the Medicare trustees’ 10-year ator from Michigan has 25 minutes. isiana whose nutrition is going to be test of financial adequacy. In other The Senator from West Virginia has cut because of this program. Mr. Presi- words, Medicare has enough money in 111⁄2 minutes. dent, 60,000 people of modest means in the HI trust fund at the end of every Mr. ABRAHAM. At this time I yield my State are going to have to pay year—that is critically important—at 5 minutes to the Senator from Georgia. more for housing. the end of every year for the next 10 The PRESIDING OFFICER. The Sen- Mr. President, going right down the years, to pay the entire next year’s ator from Georgia is recognized. line—look at Medicare. We will have 17 Medicare benefit. Mr. COVERDELL. Mr. President, this million low and moderate-income peo- Mr. President, the Medicare HI trust whole debate baffles me. I think it ple in this country who will have an fund has a $300 billion balance in the really boils down to those who want average tax increase of $352. The Medi- year 2005. The Medicare trust fund bal- the status quo and those who want to care people who are having their Medi- ance is increasing—would be increasing confront the fiscal dilemma. care cut, their average income is instead of decreasing every year. The entitlement commission was $17,750, while we are giving tax cuts to Using CBO’s estimate through 2005, chaired by the distinguished Senator those of greater income. we went to the Office of the Actuary to from Nebraska who is on the floor Now, Mr. President, there is a bliz- get their preliminary estimate of how right now and that sets the predicate zard of propaganda—— long solvency would be extended under for everything that has to be done. I The PRESIDING OFFICER. The 3 our proposal. The Medicare HI trust commend the Senator for that work. I minutes yielded to the Senator has ex- fund solvency will be extended until wish a lot more was being said about pired. about the year 2020 under the proposal. it. Mr. JOHNSTON. Mr. President, I op- That is our estimate, in consultation But, in essence, that report says that pose this program because it is income with the Office of the Actuary. That is within 10 years all U.S. revenue and redistribution from the bottom to the a quarter of a century from today. wealth is exhausted by five programs: top. What a contrast to what would hap- Social Security, Medicare, Medicaid, Mr. ABRAHAM. Mr. President, I pen under the proposal before when it Federal retirement, and the interest on yield 5 minutes to the Senator from would only be solvent to 2005. our debt. And then there is nothing Delaware. Mr. President, $89 billion in Medicare left. Mr. ROTH. Mr. President, as chair- savings just is not enough. Even the So it is entirely appropriate that the man of the Finance Committee, I must President earlier this year said that at new majority confront these issues. In oppose the Democrats’ amendment for least $127 billion in Medicare savings the discussion, with repeated fre- one simple reason: It does not preserve are necessary. quency, the other side tries to link the the Medicare Program for this genera- Let me just say, Mr. President, a few tax reduction that we are proposing to tion, and, especially important, not for words about the need for savings to Medicare. Over and over and over we future generations. That was the con- Medicare part B. Most attention has hear that somehow, something is being clusion that the Finance Committee been focused on the need to restore sol- taken away from Medicare to help a came to when it voted down this vency in the part A trust fund. tax reduction. amendment during our deliberations. But part B spending is a big, big The President, of course, has already My good friends and distinguished problem. According to Medicare public admitted that he raised taxes too much colleagues, Senators MOYNIHAN and trustees—again, appointed by Presi- in 1993. We are trying to help him fix ROCKEFELLER, offered a similar amend- dent Clinton—the Medicare part B it, even without the support of his col- ment during the Finance Committee spending shows a rate of cost which is leagues here on the Senate floor. markup to save $89 billion from the clearly unsustainable. Medicare part B But this is not a vacuum in which we Medicare Program over the next 7 spending was $2 billion in 1970. In 1995 are operating. What happens to the $245 years. Frankly, it did not go far the Congressional Budget Office esti- billion in tax reductions? First of all, enough then and it does not go far mates Medicare part B spending to be the savings on Medicare by law stay in enough now. about $66 billion. Medicare and extend the solvency, The Congressional Budget Office did The PRESIDING OFFICER (Mr. GOR- which is why we have been given assur- a preliminary estimate of the Medicare TON). The time yielded to the Senator ances that our Medicare proposal will trust fund effects of the Democrats’ from Delaware has expired. assure solvency for a quarter century, amendment to save $89 billion from the Mr. ABRAHAM. I yield the Senator 25 years. Their suggestion gives us 24 Medicare Program. Remember, it is the from Delaware an additional minute of months. Is America looking for a Band- CBO office that the President himself time. Aid or a solution for these senior citi- said is the one that should be making The PRESIDING OFFICER. The Sen- zens? these kind of determinations. ator from Delaware is recognized. Let us step aside. Why are we coming Here is what CBO’s preliminary esti- Mr. ROTH. Mr. President, let me con- forward with a tax reduction? I read mates showed would happen to the clude by saying that without savings in here, from Llewellyn H. Rockwell, of Medicare HI trust fund if only $89 bil- the part B program we cannot say that the Ludwig Von Mises Institute in Au- lion is saved over the next 7 years. The we have effectively tackled the prob- burn, AL. He says: Medicare HI trust fund would only be lem of fixing Medicare. Therefore, I op- Even as family income has declined since solvent through the year 2004. In other pose the Democrats’ amendment be- 1970, the Federal Government’s tax hike in words, it would get us through the next cause we have already debated and real terms has increased more than 600 per- election. voted down this amendment in the Fi- cent. CBO further said that the Medicare nance Committee. It does not go far An average family, making $40,000 a HI trust fund would have a negative enough to help the Medicare HI trust year, with two children, is seeing half S 15626 CONGRESSIONAL RECORD — SENATE October 25, 1995 their total income absorbed and taken paying 31.5 percent. Not 50 percent of cans, when they stop and look at what away by a Government. In 1950, Ozzie the premium, but 31.5 percent. is about to happen, are going to wind and Harriet, the quintessential family, Do we change that? No, we do not up asking if it is fair to take an assess- sent 2 cents out of every dollar off to change that at all. That remains con- ment by the trustees of Medicare that Washington. If Ozzie was here today, he stant at 31.5. I do not know how any- says there is a $90 billion problem, and would be sending 24 cents to Washing- body could complain about that. You turn it, through political sophistry, ton. get 100 percent of the premium and you into a $270 billion problem so that you The point is we have marginalized only pay 31.5 percent for it. can give a $245 billion tax cut. That is the average family. We have taken so We then go on to say, wait a minute, absolutely what this comes down to. much of their resource away from them this is costing the Federal Government This is a zero-sum game. This is a that they are unable to fulfill their a lot of money. It is costing the Fed- process of balancing the budget. And in principal obligations to their children eral Government $42 billion a year to their balanced budget, they are offer- —to housing, to clothing, to education subsidize that part B premium, the ing a $245 billion tax reduction to and health. So, it is important that other 69 percent. So we say, is it not Americans. How do they get it? They there is a tax reduction. Their Presi- fair for the richer people to pay more do not pull it out of the sky. It has to dent has already acknowledged it. And of that premium? So that is what we be balanced against other items in the we are fulfilling it. provide. We provide for individuals budget. And in order to find the room Mr. President, 70 percent of this tax with $50,000 of income—this is not some to balance the budget and provide the relief will go to families with incomes pauper, this is an individual with $245 billion tax cut, they give a $270 bil- under $75,000. This proposal alone, for $50,000 of income—or a couple with lion definition to a Medicare problem this family that makes $40,000, the $75,000 of income, that they will then that the trustees themselves call an $89 combination of the tax reduction and start paying more of that premium billion problem. It is that simple. Take the balanced budget, will put between than 31.5 percent. Apparently they do away the smoke, take away the mir- 2,000 and 3,000 new dollars on the kitch- not think that is fair. I think it is emi- rors, and take away the rhetoric. You en table of every family home. That is nently fair. Why should some jewelry cannot balance the budget with a $245 an equivalent increase of their dispos- worker in the city of Providence have billion tax break without finding the able income of 10 to 20 percent, depend- his or her wages deducted and go into money somewhere. And they find the ing on the family. That relief is long the general Treasury and come out to money by taking it from seniors. Is overdue. pay some wealthy person’s premium that fair? We will lower their interest pay- under part B of Medicare? They say to Americans they are giv- ments on their mortgage, probably But does that person at $50,000, or ing every American family a tax break about $50,000, by $1,081. We will lower $75,000 a couple, have to pay all the for having children—the $500 credit. the interest expense on their car loan premium? But analysis will show that, too, is not by about $180 a year; on the student The answer is no, they do not. They only not fair, but it is not truthful be- loan, by $220 a year; on their credit just start paying more than the 3l.5 cause not every American family will card. With the two children, they will percent. When do they start paying the get the tax credit because not every get $500 for each child. full part of the premium? When the in- American family qualifies because of This is just the beginning, and that is dividual reaches $100,000 and the couple income to have an income tax reduc- $2,500 to that average family. Given the reaches $150,000. tion. Most American families pay their fact we are taking half their income So, Mr. President, this is a very fair taxes—a large burden—many, through now, do we not think it is about time program. By the way, if the person the payroll tax. And because the tax that something got back to the average does not want that insurance, they do credit is not refundable to them at the family? This tax relief does not dis- not have to take it. It is an optional lower end of the income scale, they will appear. This goes to real working fami- program. I do not know. Apparently, not get the benefit. So not only do you lies, real people who are having a hard over on the other side they think it is have a skewed tax relief, so to speak, time making ends meet. To extend sol- wonderful that the Federal Govern- but you have a discrimination against vency and to help the middle-income ment subsidizes these insurance pro- the hard-working average taxpayer of family is entirely appropriate. grams. America. Mr. President, I yield the floor. Jack Kent Cooke, the owner of the But it is even worse than that, Mr. The PRESIDING OFFICER. The time Redskins, is having 70 percent of his President. Because while they give a of the Senator has expired. Who yields doctors’ bills paid for by some worker, tax break of about $5,000-plus to the time? somebody who cleans up the halls or person earning more than $350,000 a Mr. CHAFEE addressed the Chair. works in a restaurant. I do not think year, they raise the taxes on the person The PRESIDING OFFICER. Who that is fair. earning less than $30,000 a year. yields time? I think the program that the Repub- That is an extraordinary definition of Mr. ABRAHAM. Mr. President, I licans have submitted in connection fairness. I do not know where you get yield 5 minutes to the Senator from with Medicare is an eminently fair pro- that definition of fairness. The Medi- Rhode Island. gram, and, Mr. President, I urge its care cuts themselves are going to be The PRESIDING OFFICER. The Sen- support in this Chamber. devastating, devastating. There are ator from Rhode Island. I think there is no need for this re- more and more post-World War II baby Mr. CHAFEE. Mr. President, what I committal motion whatsoever. boomers who are reaching the age of 65, would like to do this afternoon, briefly, The PRESIDING OFFICER. Who and the number of people paying taxes is to address the so-called part B pre- yields time? to pay for them is diminishing. Today mium situation. It seems to me, in all The Senator from West Virginia. you have an estimated four taxpayers of this political maneuvering around Mr. ROCKEFELLER. I yield 4 min- supporting a Medicare part A bene- here, the Democratic Party has over- utes to the Senator from Massachu- ficiary, four people supporting one. But looked the unfairness that is occurring setts. when the baby boomers retire between in the part B premium. The PRESIDING OFFICER. The Sen- the years 2010 and 2015 you are going to What is the part B premium? The ator from Massachusetts. go down to about two people paying for part B premium is an insurance pro- Mr. KERRY. Thank you, Mr. Presi- each one of those on part A. gram that those on Medicare take out dent. I thank my friend from West Vir- The result of that with these cuts is if they wish. When Medicare was set ginia. going to be that you are going to have up, under the part B proposal the Fed- Mr. President, the Senator from an overall population increase of 2 per- eral Government was going to pay half Rhode Island said that he thinks it is cent, but are you are going to have a the cost of the premium, and the in- eminently fair. Let me try to just re- 30-percent increase of people on Medi- sured was going to pay the other half. duce it to the simplest, and I think the care looking for their retirement bene- But over the years that has deterio- most truthful assessment of what is fits under Medicare? The problem is rated so now, currently, the insured is fair and what is not fair. Most Ameri- under the cuts and the reductions of October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15627 the total pot that will be made avail- number of taxpayers paying for each care sector, and on those communities able by the Republicans, you are going Medicare part a beneficiary will have who have become dependent upon this to be having people come in at a 30-per- dropped by two. sector as a means of fighting or deter- cent increase saying, ‘‘Where are the Thus we will have gone from a 4-to-1 ring rising unemployment. benefits that I am due?’’ And they are ratio to a 2-to-1 ratio in just a few I yield the floor. not going to have them. years. The PRESIDING OFFICER. Who Mr. President, this is not fair. It is By 2008, our overall population will yields time? not sensible. And I hope that we will increase by 2 percent, but our retired Mr. ABRAHAM. Mr. President, at adopt the amendment of the Democrats population will increase by 30 percent. this time I yield to the Senator from to have a fair distribution of solving The Medicare changes will, however, Tennessee 7 minutes. the problem. cause one additional problem—a reduc- How much time remains? Mr. President, the Medicare and Med- tion in health care employment and The PRESIDING OFFICER. The Sen- icaid cuts proposed by the Republicans other jobs that indirectly benefit from ator from Michigan has 15 minutes-plus hurt people and families. the health care sector. remaining, and the Senator from West The Republican cuts eliminate jobs, Let us look at the impact on my Virginia has almost 7 minutes. and these Democratic amendments pro- State: Jim Howell of the Howell Group The Senator from Tennessee. tect jobs. has recently issued a study that shows Mr. FRIST. Mr. President, I rise to Republican cuts affect the quality of that the proposed combined cuts in speak against the motion. Why? Be- care for nursing home patients, and Medicare and Medicaid of $452 billion cause the plan we have on the table ad- these Democratic amendments main- will conservatively result in a $13 bil- dresses three central issues. tain care—for seniors, for people with lion loss to the State over 7 years. First, it prevents bankruptcy of not disabilities, and for children while still Massachusetts could lose 71,000— just for part A, not just the hospital containing costs. 71,000—health sector jobs and the indi- part of the trust fund, but it prevents These Democratic amendments scale rect employment impact could result the bankruptcy of the entire program. back tax breaks for the wealthy to help in $165,000 lost jobs. Second, our plan, our underlying bill, people in my State and around the The hardest hit towns would be Bos- increases spending, increases spending country who are struggling to make ton, Brockton, Cambridge, Fall River, from $4,800 by nearly $2,000 per bene- ends meet. Farmingham, New Bedford, Salem, ficiary to $6,700. That is an increase in My Republican colleagues are offer- Springfield, and Worcester. spending. ing a $270 billion solution—at least $160 The proposed $1 billion cut in funds And, third, our program improves billion more than is necessary to en- for graduate medical education will Medicare as we know it today. sure the financial solvency of Medi- have a devastating impact on institu- As has been pointed out by my col- care. tions and it will hurt Massachusetts’ leagues before, we have a program that We have been told by the Medicare knowledge-based economy by disrupt- is a good program. I say that as a phy- trustees that there is a pending finan- ing the network of medical schools, re- sician who has taken care of thousands cial disaster that could result in the search institutions, health care provid- of Medicare patients. It is a good pro- total collapse of the Medicare part A ers, and biotech firms. gram. But it is an antiquated, out-of- program unless changes are enacted. The proposed cuts would result in ag- date program that locks seniors’ hands, According to the trustees, the mag- gregate personal income losses in the that deprives them of choice. We want nitude of the crisis is around $89 bil- State of $2.1 billion. to give them choice. We want to give lion. The Republican solution is to The health of seniors and children, them the opportunities that you have, make changes impacting both bene- and the loss of jobs at a time when that I have, that most people, the ma- ficiaries and providers that would save working families are struggling to jority of people have who are less than $270 billion—three times the amount make ends meet is just too high a price 65 years of age today. necessary to fix the current financial to pay. The Democratic motion ignores the crisis. The problems for Massachusetts are fundamental problem. The problem is It is important that people across intensified when we examine the poten- twofold. It really has not been dis- America recognize that Medicare is tial impact of the proposed cuts in cussed very much over the last hour faced with a short-term crisis that can Medicaid—the health care program for and a half. be fixed without totally dismantling a poor children disabled persons, and sen- The first part of the problem is that program that has provided economic iors. it is an outdated program. It does not health security to millions of retired Under the Republican plan, Massa- meet the needs of our senior citizens Americans since its inception. chusetts would lose approximately $4.6 today, or individuals with disabilities, While I fully recognize that there is a billion. or why would 70 percent of them have financial crisis confronting Medicare, With regard to children, one out of to go outside and buy additional cov- and believe it is probably somewhere every three low-income who is cur- erage for Medicare? Why is it that Med- beyond $89 billion, but substantially rently receiving health insurance cov- icare today does not cover prescription less than the Republican solution, the erage from Medicaid is in jeopardy of drugs? Gingrich solutions are anything but so- losing their coverage. As a heart surgeon, as a lung sur- lutions. For elderly persons in Massachusetts, geon, as somebody, again, who has The solutions being put forth fail the impact is more severe. Currently, taken care of so many Medicare pa- once again to take into consideration 75 percent of all patients in Massachu- tients, I can tell you our senior citizens the changing composition of the over- setts nursing homes are dependent need help with their prescription drugs. 65 population. For example, do the so- upon Medicaid to help pay for the costs Today, we deny choice. We deny the lutions being proposed really fit the of nursing home care. right to choose to our senior citizens. acute and long-term care needs of cur- Under the Republican plan, more Is that fair? Does the other side not rent and future generations of retired than 25,000 seniors would lose their want to offer the same choice that we Americans? Medicaid eligibility by 2002. have to our seniors? With more and more post World War I believe the Republican response to That is the first part of the problem. II so-called baby boomers beginning to the Medicare crisis can best be summed To me, that is what is most exciting reach age 65, the number of workers up as follows: it does not focus on the about our solution that is in the under- paying taxes will continue to decline, future of the overall program; it does lying bill—is that we improve the pro- while the number of Medicare recipi- not address the growing long-term care gram. ents continues to increase. crisis facing Americans of all ages but Second, it is the program that has Today, an estimated four taxpayers particularly elderly Americans; and it unsustained growth. The growth has support a Medicare part a beneficiary. does not address or take into consider- been at about 10 percent a year. It is of However, when the baby boomers retire ation the impact such dramatic cuts the entire program. We talk a lot about between 2010 and 2015, the estimated will have on employment in the health the trust fund, part A. I think people S 15628 CONGRESSIONAL RECORD — SENATE October 25, 1995 broadly need to know that part A is So what we have done is taken this say, ‘‘Don’t worry, mom. Even though I one part of the problem. Part A is the curve and shifted it 2 years, put a can’t pay my taxes, even though I can’t hospitals. Part B is the doctors. This Band-Aid on it without addressing the get my kid to school, I am going to in- particular proposal by the Democrats underlying problem—again, short-term crease my taxes, in effect, 800 bucks to today addresses the part A part of the solutions. That seems to be so much pay for you and 800 bucks to pay for trust fund without addressing the over- the approach here. dad because I know your median in- all connection, without addressing the We are addressing it long-term. come is about $18,000, so I will take overall program. Let me see the next chart. Again, care of it for you.’’ That is really in spite of the fact that this is a chart that shows next year, if This is a tax increase for middle-class the trustee report says very specifi- we do nothing, we will begin deficit people who care about their parents. cally—and, again, this is the trustee spending in the year 1996. Again, what And wait until we get to Medicaid, report, six trustees, trustees of Medi- we do with the motion in the Chamber when Ozzie and Harriet get the phone care, three of whom are in the Clinton now is to shift this curve out, not call midyear and mom says, ‘‘Hon, they Cabinet, and they say very clearly, change the slope of the curve at all but tell me I got to come home; it’s June. ‘‘We strongly recommend that the cri- shift the curve out 2 years for some I gotta come home from the nursing sis’’—we cannot just put another Band- commission to decide in the future. home.’’ Watch what happens then to Aid on this—‘‘presented by the finan- In summary, the problem today is an decent, honorable, middle-class people cial condition of the Medicare trust antiquated, outdated system which who are being crunched on the one funds’’—funds, not just part A, funds, serves senior citizens well but not as hand by their children with the cost of the overall program—‘‘be urgently ad- well as the private system serves peo- a college education and the cost of dressed on a comprehensive basis.’’ ple under 64 years of age. We cannot just throw $89 billion at maintaining their standard of living, We address that problem. The pro- which is slipping from them, and on part A, one part of these trust funds, posal in the Chamber currently, which and expect to solve the problem long the other hand, having to pick up the I oppose, by the Democrats does not costs for mom and dad. term. address the overall antiquation of the We address the program in a com- The last point I would like to make system. prehensive way. We address part A, the is one of the reasons to send this bill Second, the Democratic proposal in hospitals; part B, physicians, the com- back, and that is, fraud, although Sen- the Chamber ignores this complex rela- plex interaction that comes between ator ROTH did much better than our tionship between A and B, touches just the two. As a physician who works in a House Members did. Everyone acknowl- upon A. hospital and works in a clinic, I can edges there is about $34 billion a year And third, the Democratic proposal, tell you it is a complex interaction and in fraud in Medicare and Medicaid. as Senator ROTH pointed out, the only you cannot address just part A. If you This bill hardly touches the problem. thing it does is move these problems squeeze part A, part B will balloon out. This is the case, I might add, because The Democratic motion addresses out another 2 years beyond the next health care providers do not like us only part A. And, again, if you go back election. dealing with fraud. to the trustee report, the trustees say Ours is a long-term solution. I have been working to combat it is not a problem just with part A. It I yield the floor. health care fraud for over 3 years is both trust funds. ‘‘Both the Hospital The PRESIDING OFFICER. Who now—ever since I first introduced a Insurance Trust Fund’’—that is part yields time? health care fraud bill in the U.S. Sen- A—‘‘and the Supplemental Medical In- The Senator from West Virginia. ate and held hearings on health care surance Trust Fund show alarming fi- Mr. ROCKEFELLER. Mr. President, I fraud in the Senate Judiciary Commit- nancial results.’’ The part A ‘‘trust yield 3 minutes to the Senator from tee. Delaware. fund continues to be severely out of fi- I found in those hearings—and it has The PRESIDING OFFICER. The Sen- nancial balance and is projected to be been reported elsewhere ever since— ator from Delaware is recognized. exhausted in about 7 years.’’ that fraud in the entire health care Mr. BIDEN. I will be necessarily The distinguished chairman of the sector accounts for up to 10 percent of brief, Mr. President. Finance Committee just read the re- all health care spending. Mr. President, I find it fascinating to port from the CBO that says maybe the The same, unfortunately, is true for hear none of my Republican colleagues $89 billion which is in this proposal by Medicare. stand up and say the Medicare system the Democrats today will extend that The General Accounting Office esti- trust fund, just that part A, for 2 years, is bad. They say things like it is anti- quated and outdated, but it serves the mates that fraud in the Medicare Pro- maybe 2 years. It does not address the gram will total up to $18 billion this underlying problem. senior citizens well. How in the heck can that be done? How can it be anti- year alone. Medicaid fraud is another Going back to the Medicare trustees $16 billion. report: ‘‘The HI Trust Fund continues quated, outdated, and serve the senior Now, the vast majority of doctors to be severely out of financial balance. citizens well? and other health care providers are * * * The SMI Trust Fund’’—part B, The second thing I would like to say honest professionals. But, a few dishon- not addressed by this proposed amend- is in response to my friend from Geor- est manipulators are ripping off the ment today—‘‘shows a rate of growth gia talking about Ozzie and Harriet. taxpayers and threatening the integ- of costs which is clearly Let me tell you how Ozzie and Harriet rity of Medicare and Medicaid. A few unsustainable.’’ Clearly unsustainable. are going to work under this proposal. cynical criminals are preying on those My point is, we have a program here They are going to find out that their who need health care the most. you cannot just address one part with- mother and their father on Medicare out addressing the overall program. are going to pay $800 or $900 a year Going after these crooks and thieves Let me go back to a chart that was more come the year 2002. Then when who are defrauding the system must be shown earlier by my colleague from grandmom and grandpop come to Ozzie our top priority. If this motion to com- New Hampshire that shows that we are and Harriet, because they have the mit is adopted—and I hope it will be— going bankrupt in 7 years. In 7 short same middle-class values as the Sen- the first place we should try to find years there will be no Medicare part A ator from Georgia and I do, and mom savings is in Medicare fraud. trust fund. says, ‘‘Ozzie, I tell you what, these Re- Later in the debate, Mr. President, I Again, the distinguished chairman of publicans gave me a choice; I can pay will be joining Senator HARKIN and the Finance Committee said that the $800 more or I can go into one of these Senator GRAHAM in offering an amend- CBO’s preliminary estimate shows HMO things, but I do not get to see Dr. ment specifically on Medicare fraud— what will happen to the Medicare trust Jones anymore,’’ do you think Ozzie is and I hope my colleagues will support fund if only $89 billion is saved over the going to stand there and say, ‘‘Hey, that as well. next 7 years. Their conclusion: The Mom, tough.’’ According to one estimate, for every Medicare HI trust fund is solvent Ozzie is going to reach in his pocket, dollar we spend fighting Medicare through the year 2004. like all the Ozzies in this Chamber, and fraud, we save $10. One example of this: October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15629 in 1994, in the Middle District of Penn- Mr. BIDEN. I yield my time. Fraud is because that is not what we on this sylvania, the Justice Department re- a problem. This bill does not address it. side are trying to do. covered almost $7 million in fraudulent Mr. ROCKEFELLER addressed the I hope my colleagues will understand Medicare and Medicaid payments— Chair. the genesis and the nature of what this more than what it cost to run the en- The PRESIDING OFFICER. The Sen- whole argument has been about from tire Justice Department office in that ator from West Virginia. the very beginning. district. Mr. ROCKEFELLER. I yield 11⁄2 min- This is a historic vote. It is a defin- This is an excellent return on our in- utes to the Senator from Massachu- ing moment. It is an extremely dan- vestment. So, before we raise costs to setts. gerous moment for the seniors of our senior citizens—before we impose dra- The PRESIDING OFFICER. The Sen- country. conian cuts on benefits—we need to ator from Massachusetts. I thank the Chair and yield the floor. root the robbers out of Medicare. Mr. KENNEDY. Mr. President, I have The PRESIDING OFFICER. Who Let me say up again that the Senate been in the Chamber for 5 hours, and yields time? bill is much better than the House bill what we have not heard from the other Mr. DOMENICI addressed the Chair. on this front. The House bill would side is the justification for a $245 bil- The PRESIDING OFFICER. The Sen- make it much more difficult to pros- lion tax cut for the wealthiest individ- ator from New Mexico. ecute health care fraud. uals, the wealthiest corporations and Mr. DOMENICI. Parliamentary in- The House bill would change the an increase in the taxes on the working quiry. standard of proof in a civil fraud case families. What is the time situation? from ‘‘knows or should know’’ to ‘‘de- The challenge of the Rockefeller The PRESIDING OFFICER. The Sen- liberate ignorance’’ or ‘‘reckless dis- amendment is to join with us, Repub- ator from New Mexico has just under 8 regard.’’ licans and Democrats alike, put aside minutes remaining. The Senator from The House bill would change the the tax cuts for the wealthy, put aside West Virginia has 28 seconds remain- standard for enforcing the Federal the tax breaks for the large corpora- ing. antikickback laws. The current stand- tions, put aside the tax increase on the Mr. DOMENICI. Mr. President, I ard prohibits kickbacks when one of working families, and join with us in yield myself 7 minutes of that. the purposes is ‘‘to induce’’ referrals. taking the recommendations of the Mr. President, there is no question But, the House bill would prohibit trustees’ report for $89 billion, work this is a defining moment. It is a defin- kickbacks only ‘‘for the significant with us for a program that will mean ing moment because today and tomor- purpose of inducing referrals.’’ no increase in premiums, no increase in row we are going to decide whether we Fortunately, these provisions are not copays, no increase in deductibles, not want to have a Medicare program for in the Senate bill. But, let me mention lifting the age eligibility issue and as- the senior citizens of the United States one thing about the Senate bill that suring the senior citizens of a meaning- or whether we want, under this amend- troubles me from the fraud perspective. ful choice. ment, to protect one little part of it for The Senate bill would repeal all Fed- We can do that. We should do it. That a couple of years. eral safety protections for seniors in is the challenge. That effectively is the Which do the seniors really want? Do nursing homes. Last week, in Dela- challenge of the Rockefeller amend- they want a Democratic proposal ware, I held a forum on Medicare fraud. ment, and I hope it will be accepted. which essentially ignores more than At that forum, Federal prosecutors The PRESIDING OFFICER. Who half of the Medicare program, does not said that elimination of nursing home yields time? even talk about it? It is in big trouble. standards would create a significant Mr. ROCKEFELLER addressed the And then it says we are only going to problem in both the investigation and Chair. reform the hospital program suffi- prosecution of patient abuse. The PRESIDING OFFICER. The Sen- ciently to keep that fund solvent for In addition, Mr. President, I believe ator from West Virginia. how many years, I ask Dr. FRIST? the antifraud provisions in the Senate Mr. ROCKEFELLER. Mr. President, Mr. FRIST. Two additional years. bill could be—and should be—stronger. as I said at the beginning of this de- Mr. DOMENICI. Two additional We need to guarantee that there will bate, all of this comes out of the Con- years, two additional years. be funding to fight fraud—so that there tract With America. All of the $270 bil- Now, for all the talk on that side of are more investigators and prosecutors lion cut in Medicare comes out of the the aisle, the truth of the matter is, in the field to go after the crooks. desire to find the tax breaks for they do not really care about senior We should collect the costs of our in- wealthy families and corporations. citizens. They would rather win this vestigations from those who are found When you are looking for that kind fight than protect the senior citizens. guilty. And, we should require the of money in the budget that we now They are crisscrossing America and guilty to pay restitution to the vic- have, you cannot look to the military. using the airwaves to frighten them to tims. You cannot look to education. You death. And what is their proposal? We need to strengthen the penalties have to look to the places where the Their proposal is to extend the trust for those found guilty of health care money is. That is in Medicare, that is fund 2 years. fraud—including increased fines for in Medicaid, to some degree in the Now, let me suggest, nobody should those who violate the antikickback earned income tax credit and, of believe with that dose of reality that laws. course, to some degree in welfare. this is anything more than a political And, we should provide rewards for So the Republicans have pounced exercise. It has little or nothing to do consumers and patients who uncover upon Medicare, and they have decided with American senior citizens. It has fraud. not to solve the Medicare problem but to do with trying to win at the ballot So, Mr. President, I hope my col- to bury Medicare with the idea of mak- box. And let me say to the seniors, leagues will support the motion to ing absolutely certain that they could once we have resolved this issue, you commit—so that fraud can be made the get the most amount of money from will find the reality and you will not be top priority in achieving Senate sav- Medicare for the purposes of their tax duped by the debates of today. Rather, ings. And, I hope my colleagues will breaks for the wealthy that they pos- you will be convinced by the reality of later adopt the Harkin-Graham-Biden sibly could. tomorrow, which means we are going antifraud amendment. This vote is about nothing else than to have a Medicare system that is sol- Now is not the time to make it easier that. If it is simply a matter of trying vent, that we can afford, and that our for the crooks and con artists to get to solve the Medicare problem, then young people who are helping pay for it away with ripping off the American the Democratic solution in this amend- can be proud of. taxpayer. Instead, we need to renew ment, which I hope people will support, Now, there is no question that once and strengthen our efforts to fight is the answer: $89 billion will do it. If it again it is proven that the other side of Medicare fraud. is tax breaks for the wealthy, and that the aisle, the Democrats, would rather The PRESIDING OFFICER. The 3 is what you are after, then you will tax and spend than to reduce expendi- minutes have expired. want to vote against this amendment tures and cut the American people’s S 15630 CONGRESSIONAL RECORD — SENATE October 25, 1995 taxes. For what else is this? If there kids because you get a break if you do care eligibility from 65 to 67. We know are no tax cuts in this bill, part A of not. that it eliminates protections for sen- Medicare goes broke. Take them off We have fixed that in this bill. Is iors by providing doctors and managed the table and it goes broke. That is not that helping rich people of America or care plans with opportunities to charge this Senator speaking. That is the is that helping thousands of Americans seniors more than a Medicare-approved trustees, four of whom work for the that would like the benefit of not being rate. We know all of that. There is no President. Forget the tax cut, it goes treated inferior because they happen to doubt about it. No dispute. broke. So what are they talking about? file jointly as husband and wife? No one should be misled. This pro- They are talking about a political It seems to me we are on the right posal is going to hurt. And if it were in issue, not the reality of what we as side of these issues. And all we are some way designed to really reform leaders must do. going to hear is political rhetoric, half- Medicare, and to bring the trust fund Frankly, there is no question that truths. And by the time we are fin- into solvency in ways beyond what the the trustees talked to us about both ished, and this program is imple- Democrats have offered, I could under- parts of Medicare. Seniors, you under- mented, I suggest it will be those stand it. If we were in a position where stand very few of you go to hospitals prophets of gloom who predict what is it was this plan or bankruptcy, I could every year, but a lot of you go to see unpredictable—because it will not hap- see that we might have to suck it in your doctors. The hospital coverage is pen—they will be the ones to suffer, and do it. the part that will be protected for 2 ad- not the Senators on this side who are But we know with certainty that is ditional years, but the rest of the pro- going to stand up and be counted not the case. The actuaries and the gram will be, according to the Demo- today. trustees have told us that we need $89 cratic version, will be left in the dol- I yield the floor. billion to keep the trust fund solvent drums. The PRESIDING OFFICER. Who into the year 2006. Not a penny more. The trustees told us both part A and yields time? In an analysis of the House plan to cut part B are in serious, serious trouble. Mr. DASCHLE addressed the Chair. $270 billion, the actuaries also indi- And we have explained to everyone, we The PRESIDING OFFICER. The mi- cated a solvency date in 2006. Where do not have to change things a lot to nority leader. does the extra money go? make this a far better program for the Mr. DASCHLE. Mr. President, I will Again, no one should be misled. This future and give seniors a choice rather use leader time to accommodate my re- is not a question about solvency. It is than have them rattled by the bureauc- marks. a question about where we go for reve- racy and paperwork that frustrates Mr. President, I was told that the nue to pay for the tax cut that we have them more than the doctors that serve previous speaker just has indicated been debating now for several months. them. that it is his view that Democrats do Let me just say, Mr. President, the If you have ever heard a senior com- not care about senior citizens. If that damage done under this plan reaches plain, they say, ‘‘Why do we have to fill is what he said, I am very disappointed. beyond seniors. The problem with the out all these papers? We don’t even un- He knows better than that. In fact, the health care provisions in the reconcili- derstand them. We are getting de- issues in this debate are about finding ation package is that 9 million people frauded. We can never find out what it the best approach for senior citizens, in rural America could find their clin- costs.’’ That will all change once we and finding a way to ensure that the ics closed when they need health care defeat this amendment today and move commitment we made three decades in the future. Under these proposals, on with the Republican agenda. ago will remain for as many decades as we know the hurt will be widespread. Let me make one last remark. We this country exists. These are the is- We know that in South Dakota 10 to used to hear that it was the House plan sues. 15 rural hospitals would likely close. that was going to give all these tax I think it is all too convenient—all We know that these proposals will cuts to the rich. And we used to come too convenient—that at the very time undermine health care provided in down here and say, ‘‘What plan are you our Republican colleagues propose a rural America. talking about?’’ They would say, ‘‘The $245 billion tax cut, it just so happens We know that huge cuts to teaching House plan.’’ They cannot talk about it they also propose to cut Medicare $270 hospitals will decimate medical re- anymore because right here before us is billion. search and training programs. the Senate plan. And the Senate plan I know there are some who say it is We know that up to $100 billion is does not cut taxes for the rich as de- sheer coincidence. I know there are going to be cost-shifted on to those scribed on the floor of the Senate by some who say we could come up with with insurance in the private sector, the distinguished Democratic Senators. the tax cut or the tax break revenue in according to the Lewin-VHI study. Let me say, once and for all, 90 percent other ways. But I also know that there We know all of these things, and of the tax cut in this bill—not 60 per- are not many pools out there that are more. So this is not just an issue for cent, not 50 percent—90 percent will go big enough to accommodate a tax cut, senior citizens. This is an issue affect- to Americans with $100,000 in income or a tax break of that size. This is the big- ing rural America, and every single less. And that is not DOMENICI, that is gest rollback in health benefits to sen- person with private insurance in the the Joint Tax Committee—90 percent. ior citizens in American history. This country. Now, they can get up and hypo- is the biggest financial transfer from And so, Mr. President, I just hope be- thetically say we are giving the rich low- and middle-income families to the fore we cast this vote that no one mis- back tax cuts. Ninety percent go to upper-income brackets in American understands our choices. If we choose $100,000 earners and less. Are those the history. So no one should be misled. to protect the trust fund by ensuring rich people of America or are those the This will be the most important vote its solvency, to recognize the impor- people with families that need some we will cast during the budget debate. tance of this issue to senior citizens help in raising their children? That is So, Mr. President it is with a great and their families, to say no to tax what this Senate bill is about. We have deal of concern, grave concern, that we breaks in areas where they are not nec- decided that our families raising chil- offer this amendment this afternoon. essary, and to say no to tax breaks to dren ought to get a better economic There is no question about what this the wealthy, then the choice is very break because years ago we used to proposal in the reconciliation package clear. Democrats have presented an al- give them a break. We took it away. means for senior citizens. I do not ternative that makes sense, that en- In fact, I would close by saying a think there is any doubt. Any analyt- sures solvency, that assures, in the piece of this tax bill goes to correct ical report will show that this proposal long term, senior citizens are going to what the Democrats did last time. will cause senior couples to pay more continue to get the best care that we They raised the marital deduction. than $2,800 more in Medicare premiums could possibly provide and that pro- They made it cheaper to be unmarried and deductibles. tects a commitment that is now more than married with the same income, We know it will double premiums. We than 30 years old. We owe them that. another enticement not to get married, know it will double deductibles. We We ought to adopt this amendment. not to stay together and raise your know it will increase the age of Medi- I yield the floor. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15631 The PRESIDING OFFICER. Who projection. We do an intermediate pro- dential appointees themselves, six of yields time? jection. I might remind Members that the seven who are Democrats, all ap- Mr. DOMENICI addressed the Chair. in Social Security projections, for pointed by the President of the United The PRESIDING OFFICER. The Sen- most of the years we have had those States. That is not a Republican pro- ator from New Mexico. Social Security projections, the opti- jection; that, if you want one, is a Mr. DOMENICI. Parliamentary in- mistic projection has not proved to be Democratic projection. quiry, Mr. President. How much time correct. As a matter of fact, the inter- I think we need to do better than remains and who has time? mediate projection has not proved to that. I think we need to say to the The PRESIDING OFFICER. Fifty- be correct. As a matter of fact, the con- working men and women of this coun- seven seconds to the Senator from New servative projection has not proved to try, ‘‘We’re not only going to take your Mexico; 28 seconds to the Senator from be correct. Through most of the years money for the next 10 years,’’ which West Virginia. we have had those Social Security pro- the current law does, ‘‘but we’re going Mr. DOMENICI. Does the Senator jections, as a matter of fact, even the to make sure there is something there from West Virginia want to save his 28 conservative one proved to be far too for you when we finish.’’ seconds? optimistic. That is what this amendment does. None of us have a crystal ball, but I Mr. ROCKEFELLER. I yield back my This amendment makes it quite clear think it would be foolish in the first time. that what we are to look at is not just order for us to assume that the $89 bil- Mr. DOMENICI. Mr. President, I just the short term, but the long term as lion is going to be enough to keep this want to finish wrapping up. There is a well. I believe that is a proper focus. I fund solvent through the year 2006. If suggestion when we talk about how believe it meets our commitment. history is to be the judge in looking at much is being reformed, how many dol- We have a choice with this amend- lars are going to be saved, nobody talks the projections we have had, it is quite clear that we may well see this fund go ment. We can go with the short-term about how much we are going to spend. outlook that leaves the fund insolvent The senior citizens ought to know we insolvent if the underlying amendment is adopted. after 10 years, or we can go with the are really not intent on denying them long-term outlook that requires that money for health care. In fact, over 7 I think men and women of honesty and fortitude who have discussed this this end up being solvent in the long years on Medicare alone, we will spend run as well. $1.65 trillion. In the seventh year, we issue today can honestly disagree will spend $104 billion more than in the about the projections. It could be the Mr. President, I suppose one of the year it starts. It will go up to $104 bil- intermediate projection is just fine. It saddest things to see, with respect to lion more, a total of $1.65 trillion, could be that the conservative projec- Federal programs which we have put in which we cannot hardly understand. tion is far too optimistic, as history as place for working men and women, With that, I yield back any time I has shown. But one thing I do know where they rely on the Federal Govern- might have and yield the floor. and one thing is incontrovertible. If ment themselves, is the Government The PRESIDING OFFICER. The time you read the report of the trustees— being in a position where we cannot and let me remind the Members, the of the Senator from New Mexico has meet our obligations. This is by a Fed- trustees are appointed by the President expired. eral Government that, through ERISA, of the United States and all but one of Mr. BROWN addressed the Chair. has come forward and said, with regard them are Democrats; that is, of the The PRESIDING OFFICER. The Sen- to private pension plans, that you are seven trustees, all seven have been ap- ator from Colorado. required to make them financially pointed by the President and all but sound, and we put in place very tough AMENDMENT NO. 2949 TO THE INSTRUCTIONS OF one of them are Democrats—they say rules on the private sector that forces THE MOTION TO COMMIT in their report that after the 10 years them to fund them, with extreme pen- Mr. BROWN. Mr. President, I rise to that is contemplated in the underlying alties on anyone who would not. offer an amendment and ask for its im- amendment that this fund goes belly mediate consideration. I do not think anyone would fail to up, even if you do the $89 billion with The PRESIDING OFFICER. The be uncomfortable with the proposition the intermediate projections. clerk will report. that says in the private sector we are They say, in the long run, it does not going to mandate these to be actuari- The assistant legislative clerk read meet the 7-year solvency test and they as follows: ally sound, but in the public sector, say, moreover, it becomes much, much trust us. Why would people not want to The Senator from Colorado [Mr. BROWN] more difficult to meet it, as you have trust us? For exactly the reason for the proposes an amendment numbered 2949 to the baby boomers coming in after this the instructions to the motion to commit S. underlying amendment. The amend- 1357 to the Finance Committee. 2006 period. ment says we will fix it in the short Strike all after ‘‘Finance’’ and insert the So the suggestion in the underlying term and leave a problem for the long following: ‘‘With instructions to report the amendment is that you should deal term. That is the difference in the pri- bill back to the Senate forthwith to include only with the current crisis and close vate sector. What we have done is im- the findings of the Trustees of the Federal your eyes to the real insolvency that is pose on them burdens to be sound, to Insurance Trust Fund that, in order to save coming in Medicare. I believe Ameri- fund their obligations, and to face up Medicare and to keep the Hospital Insurance cans deserve better. Frankly, Mr. Trust Fund solvent for future generations, to them. And in the public sector what President, I think Americans expect we have done with the underlying Congress must address both the long-term better. If you go out to the working and short-term shortfalls in the Medicare amendment is say we are only going to program.’’ men and women of this country and fix it up and get by, and at the end of you tell them that we are going to 10 years, after taking your money, Mr. BROWN addressed the Chair. come up with a program that will let there will not be a balance left there to The PRESIDING OFFICER. The Sen- you pay taxes for another 10 years, but help you meet your obligations. ator from Colorado. at the end of 10 years, according to our I believe we have to do better. We Mr. BROWN. Mr. President, the un- intermediate projections, there will have had a lot of people quoted here. derlying amendment that is before the not be anything left for you to collect Let me quote the President’s nominees body suggests that this measure be re- on, I think they would be outraged. turned to the committee and deal only Frankly, I think they deserve to be on this board. These are the conclu- with the amount of money that would outraged. The proposal that is before sions of the board of trustees: need to keep the fund from going bank- the body says, ‘‘Let us slip by for now, Under the trustees’ intermediate assump- rupt or being insolvent through the make working people pay another 10 tions— year 2006. years and then have nothing for them My own view is that the assumptions That figure is based on their inter- when we get to the end of 2006.’’ are far too optimistic. mediate projections. I as one am famil- That is not HANK BROWN projecting Under the trustees’ intermediate assump- iar, as I think most Members are famil- with regard to the Medicare trust fund. tions, the present financing schedule for the iar, with our process. We do a conserv- That is not a group of Republicans pro- HI program is sufficient to ensure the pay- ative projection. We do an optimistic jecting. That is a report by Presi- ment of benefits only over the next 7 years. S 15632 CONGRESSIONAL RECORD — SENATE October 25, 1995 As a result, the HI trust fund does not meet The amendment is so modified. law, as shown by the projections in this re- the trustees’ short-range test of financial The amendment (No. 2949), as modi- port, the Hospital Insurance program costs adequacy. Under the high-cost alternative, fied, is as follows: are expected to far exceed revenues over the the fund is projected to be exhausted in the 75 year long-range period under any reason- I modify the text of my amendment to read year 2001, approximately 6 years from able set of assumptions. as follows: ‘‘with instructions to report the present. Under the low-cost alternative, the bill back to the Senate forthwith providing conservative one, the trust fund is projected Under any reasonable set of assump- that all savings to Part B of Medicare made to be exhausted in the year 2006. Currently, tion, Mr. President. As a result, the about four covered workers support each HI by the Balanced Budget Reconciliation Act hospital insurance program is severely enrollee. This ratio will begin to decline very of 1995 shall be transferred from the general out of financial balance, and the trust- rapidly in the next century. By the middle of fund of the Treasury to the Federal Hospital Insurance Trust Fund; to include the find- ees believe that the Congress must that century, only about two covered work- take timely action to establish long- ers will support each enrollee. ings of the trustees of the Federal Insurance Trust Fund that, in order to save Medicare term financial stability for the pro- Let me pause here, Mr. President. I and to keep the Hospital Insurance Trust gram. want to reiterate that because it un- Fund solvent for future generations, Con- derlines the problem we have and the The President’s own nominees are ad- gress must address both the long-term and monishing Congress to take timely ac- reason we should address it. ‘‘By the short-term shortfalls in the Medicare pro- middle of the next century’’—quoting gram.’’ tion to establish long-term financial stability. the Democratic majority on the Mr. BROWN. Mr. President, I want to board—‘‘only about two covered work- continue, if I may, to make available I have listened on this floor to Mem- ers will support each enrollee.’’ in the RECORD the exact words of the bers stand up and say, ‘‘Heavens, we do Mr. President, that is our problem board of trustees. I think they have not need to take long-term timely ac- and that is what needs to be addressed credibility not only because this is a tion. No, that is not what the trustees long term. contentious issue between parties and said.’’ Mr. President, it is in their re- Mr. GREGG. Will the Senator yield they happen to be—six of them—Demo- port. It is in black and white. It is on for a question? cratic members, all appointed by the page 4. Mr. BROWN. Yes. President. I think that renders at Mr. GREGG. I think the Senator The cost to the hospital insurance program least—even though they are partisan in is projected to increase over 1.6 percent of highlighted a critical point, which was their majority, it brings certain credi- gross domestic product in calendar year 1994, not made by the Senator or by anybody bility to these deliberations. Frankly, I to 4.4 percent of GDP in the year 2065. This on our side, but made by the trustees of think that for most Americans looking rapid growth is attributable primarily to an- the hospital insurance trust fund, three ticipated increases in hospital admissions at this, that is the first question they of whom are members of this adminis- and in the complexity of the services pro- tration—Secretary Rubin, Secretary will have about this aspect of it. vided, together with expected changes in de- Continuing on with this: Shalala, and Secretary Reich—which is mographics. that the trust fund is headed toward in- Not only are the anticipated reserves and With the magnitude of the projected actu- financing of the HI program inadequate to ary deficit in the hospital insurance program solvency, and that in order to correct offset the demographic change, but under all the insolvency, there would have to be and the high probability that the hospital in- sets of assumptions, the trust fund is pro- surance trust fund will be exhausted in less a significant adjustment in the trust jected to become exhausted even before the than 10 years, the trustees urge the Congress fund, either in the way of revenue or major demographic shift begins to occur. to take additional actions designed to con- benefit costs. What we are talking about here, Mr. trol hospital insurance program costs and to I would like to ask the Senator from President, is before you have that ad- address the projected financial imbalance in Colorado if he noted also on page 27 justment from four workers down to both the short range and the long range that they put a number on what that two workers supporting the persons through specific program legislation. As part of a broad-based health care reform, the adjustment would have to be. Their who receive the benefits—even before number, as I read it, is .65 percentage trustees believe that prompt, effective, and that demographic change begins, you decisive action is necessary. adjustment in payroll rates for employ- have problems with the solvency of the ees and employers, which translates fund. The trustees go on: Mr. President, how much more clear- into $387 billion of adjustment which The trustees note that some steps have ly can it be said? The President’s own must occur over a 7-year period. This is been taken to reduce the rate of growth in nominees, six of the seven of them the trustees speaking, saying an ad- payments to hospitals, including the imple- Democrats, say it as clearly as is hu- justment must occur over a 7-year pe- mentation of prospective payment systems manly possible: You have to take riod in order to get actuarial solvency, for most hospitals, and experience to date prompt, effective, and decisive action. under their intermediate assump- suggests that this mechanism, together with What is before the Senate is a sugges- provisions enacted by Congress, has re- tions—which you say are rather rosy— tion we take a short-term view, that for a 25-year period, which they con- strained the growth in hospital payments that improve the efficiency of the hospital we patch it up for 10 years and leave sider to be a short time. They would people who paid in all their life with- rather it be for 75 years. That means industry. In their overview, they continue on, out any coverage. That is not respon- when the other side comes forward sible. It does not conform with the with a proposal that only does $89 bil- and I think this is more significant for guidelines set forth by the President’s lion, they are missing the mark, ac- our purposes: own nominees. cording to their own trustees, by some- Extension of this payment system to other where in the vicinity of $300 billion. Is providers of hospital insurance services in They go on: that not correct? further legislation limits payment increases To facilitate this effort, the trustees fur- Mr. BROWN. Let me say to the dis- to all hospital insurance providers, could ther recommend legislation to establish an tinguished Senator that I believe his postpone the depletion of the HI trust fund advisory council for the Medicare program. for about another 5 to 10 years. Much more analysis is correct. It points out the This action would help provide critical infor- substantial steps would be required, how- mation that will be needed by the adminis- enormous problem we have here. We ever, to prevent trust fund depletion beyond will have an absolutely catastrophic tration and Congress as they deliberate the 2010 when the baby boom generation begins future of the hospital insurance program. impact if we do not address it now. The to reach age 65. longer we wait, the more difficult the Mr. President, that is the nub of it. Let me pause and simply mention problem gets. I am reminded by staff The trustees have put their finger on this: The Republican leader himself that we need to make it clear in this it. They hit it exactly. You can do a asked the President—he was joined by amendment that we are exempting part quick fix for 5, 10 years. That is, appar- the Speaker of the House—asked the B of the Medicare. ently, what is behind the thinking of President to help set up a commission AMENDMENT NO. 2949, AS MODIFIED the underlying amendment. But in the to work this through, as it was done in Mr. BROWN. Mr. President, I send to Democratic trustees’ own words: Social Security, to come up with an the desk a modification of my amend- Much more substantial steps would be re- answer in this area that was biparti- ment that clarifies that aspect. quired, however, to prevent trust fund deple- san, that would lend integrity to the The PRESIDING OFFICER. The Sen- tion beyond 2010 when the baby boom genera- commitments we have made to the ator has that right. tion begins to reach age 65. Under present men and women of this country who October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15633 have paid into this program—some of Mr. President, no one is going to be What are we doing to expand long- them for almost all of their lives. fooled by this amendment. Our Repub- term care? Or home care for our sen- The President was unwilling to co- lican friends are scared of this vote. iors? I am interested in that. What are operate in that venture in a timely They do not want this vote to happen. we doing about prescription drugs so manner to get an alternative before It is Halloween and they are running we can keep people out of the hospital Congress. scared. It is clear the people who are and treat people in their homes and Now, Mr. President, the reality is running scared are the Republicans save billions of dollars? I am interested this: This should be a bipartisan effort. trying to cut the Medicare. in that. Many of us are interested in I do not believe that my Democratic No one is fooled by this Halloween that. colleagues want this fund to go bank- trick. The American people know what None of those issues was addressed by rupt in the long run. The American is at stake. Medicare is at stake and our Republican friends. No, none of public is wise enough to know that Democrats are trying to save it. those issues that would have had an many of the things each party says Now, Mr. President, I have been on impact on the medium- and long-term about the other are somewhat taken the floor since the first hours, about health care needs, none of those issues with the heat of the moment and not 10:30 this morning, when we began that was addressed. necessarily meant seriously. debate. I have listened hour after hour But, instead, after 5 hours of debate I do not believe Democrats, any more after hour after hour how our Repub- and justification of their own position, than Republicans, want this program lican friends justify the measure before they refused—absolutely refused—the to go belly up. I believe the vast major- the U.S. Senate. They talked about the effort of many of us who want to try to ity of Americans, whether Democrats different proposals of it. Why it was protect Medicare, who want to defend or Republicans, would be shocked to fair, why it was just, why it was equi- Medicare. If they are so correct, as we know that this program will be out of table, how it was going to enhance have been listening to them say for 5 funds in 10 years and we would not health care for our senior citizens. hours, why will they not let us vote? have taken care of it. That is what they have talked about. Why will they not go and make the I do not think anybody—Democrat, They would not talk about the $240 bil- speeches they have been making here Republican, or independent—feels that lion tax cut for the wealthiest individ- on the floor of the U.S. Senate, back is responsible. I honestly believe that uals, for the corporations, the tax in- into the nursing homes, back in the the people of this country expect us to creases on working families, the fact senior citizens homes, back in the come up with the long-term answer. that they are raising the eligibility age plants and factories, and to the elderly That is why this amendment is offered. from 65 to 67, the pressures that will be people all over this country, if they be- It talks about looking at the long run, on the senior citizens in reducing their lieve that they are so right about it? If not just the short run. options to be able to choose their own they think the merits are on their side, Mr. President, that is the essence of doctors. why do they take this and defend it for what this debate is all about. Members No, they did not address those par- 5 hours and then say, ‘‘But we will not will have an option. They can vote ticular issues. They did not address defend it any longer. We will not de- ‘‘no’’ on this amendment and opt for a those particular issues. They said what fend it anymore. We will not defend it short-term solution only; or they can we have here makes sense. It makes at all. We are going to try and emas- vote ‘‘yes’’ on this and help ensure that sense for those who are interested in culate what you are trying to do with a long-term solution is in sight. the balanced budget. It makes sense for regard to the protection of Medicare.’’ Mr. President, let me add a word of those who are interested in quality You do not have to be around here a warning. The amounts of money in this health care. long time to understand what this is bill are estimated to be adequate with Now, our Republican friends have all about. You only have to be around other changes that would be made in come, on top of this amendment that here about 2 or 3 months to know ex- the long run to help put us on sound was offered by the Senator from West actly what it is about, and that is you footing and make it actuarily sound. Virginia, and effectively eliminated, do not want to vote on it. You do not Mr. President, I must say, my own emasculated in a way which would want to know about it. belief is that this does not go far have, if it had been accepted, preserved You came up with this proposal with- enough. My own belief is that we what had been recommended by the out a hearing on the Medicare cuts. should not be looking at the immediate trustees, the $89 billion, and ensured You refuse to listen to the elderly peo- projection. My own belief is we should there would be no increase in the ple about the impact it was going to do much more than what is suggested copays and deductible premiums for have on them. You jam this through in this bill. our seniors. the Finance Committee and the Budget While we accept the immediate But, no, they would not give the Sen- Committee. And you say that it is jus- funds, and some would say what we ate a chance to vote on that. Instead, tified to provide $240 billion to the need to do is have an $89 billion fix and they are here saying, instead of your wealthy individuals and corporations others would say a fix in excess of $270 amendment, why not just have a study and increase the taxes for working billion, my own estimate is that the about the medium- and long-term in- families. problem is much greater than that; terests of the Medicare system. You have done all that. You have it that the projections are far too opti- We are all for it. Why did you not do going your way, Senators. We have a mistic. it when you had a chance? You had the time limitation, restriction in terms of If we are to be responsible, we should votes to do it. Why did you not do that being able to take some days and pro- not only do what is in this bill, we earlier? You could have reported out vide some debate on this so the coun- should set about seriously in an effort some kind of measure in the meantime, try can know what it is all about. You to make sure that we have solved the but you did not do it. have it going all your way. You can try problem for all time, that we have All Members are concerned about to jam us because you have the votes adopted the actuarial soundness prin- what is going to happen after 10 years that way. ciples that we impose on the private of solvency for the Medicare system. But, no, you refuse to even let us sector. We ought to be willing to stand Many of us believed that what you are have a vote on accountability. Come up and do as this Congress does—begin concerned about and have offered rec- on. Come on. Your program did not to live by the same laws that we im- ommendations and suggestions, when make any sense before and you are now pose on others. you recognize that there is nothing in demonstrating here on the floor of the Mr. President, I reserve the remain- this legislation that is going to do any- U.S. Senate it does not make any sense der of my time. thing about providing preventive to you either, because you refuse to de- The PRESIDING OFFICER (Mr. health care for our senior citizens. I am fend it. You refuse to defend it. THOMPSON). The Senator from Massa- interested in that. What about the 30 We listened to all those speeches chusetts. percent of overutilization in our hos- about how correct you were. Why will Mr. KENNEDY. Mr. President, I yield pitals because of Medicare entries into you not let us have a vote on it? No. myself such time as I might consume. the hospitals? I am interested in that. No, we are, instead, going to have a S 15634 CONGRESSIONAL RECORD — SENATE October 25, 1995 vote on something else, a long-term tainly hope the leader would say, if we time that is available, a series of study on it. We are interested in long- are not going to get the vote on this amendments which would be defining term studies. We are interested in in- one, we are going to keep coming back in terms of what this debate is all termediate studies. What you do not and coming back and coming back, about. want to face is your $245 billion tax cut every single time that we have in the But we are even denied that oppor- that is coming out of the Medicare pre- 10 hours left, and we are going to make tunity, evidently. We are denied that miums, deductibles and copays for the every attempt to get a vote on it and opportunity on the first amendment seniors of the country—you do not, and let our Republican friends pull every out; denied the chance to have a roll- refuse to let us have a vote on it. kind of trick in the book on it and let call vote on this issue. Why? Why is it? Why have the Re- us take that issue all across this coun- So, Mr. President, I would have sug- publicans not spoken about that? Why try and let you defend it. You cannot gested to the minority leader and to did you not at least say, ‘‘OK, we have defend it. You cannot defend it. our friends, Senator ROCKEFELLER and addressed the short term and medium You come up here and say, ‘‘Let’s get Senator EXON, that if they have that term of the Medicare. Now we think it back to that trustees’ report now. Let’s amendment and just use that as an is right to get a tax cut for the see what is going to happen in 10, 15, 20 add-on, as an add-on to this amend- wealthiest individuals and we are years down there.’’ It is wonderful to ment, to have the language included. I proud to defend that position.’’ I have hear all those voices now. We were at- had it here a moment ago. It is not the not heard that. I have not heard that tempting to deal with the medium- and wording. Words can be worked out, speech. I do not think we are going to long-term interests of this health care that you send it back the way we sug- hear it because it is indefensible, when system in our country a year or so ago. gested that it be sent back with a re- you are looking at what they are at- It is wonderful suddenly to find they port for the $89 billion, and then we tempting to do, and that is to under- are all interested in this now, really in- also include, if you want, recommenda- mine the Medicare system which has terested in long-term care. tions in terms of meeting long-term been a compact with the seniors of this Where are the initiatives in home care. country since 1965. care? Where is a single proposal from I do not understand why the Senator You know, when I look at the con- someone on the other side of the aisle is so concerned about it, why that duct of our colleagues and friends I can on prescription drugs? That is a No. 1 route would not be acceptable. But, oh, kind of understand why they do not problem for our seniors. Where is it? If no, you cannot have it that way. We want to vote on it. I was here in 1964 you provide prescription drug assist- are not that concerned. We are not when the Medicare amendment was de- ance for our seniors you will probably that concerned about medium and long feated. I was here 8 months later, in do as much or more in terms of reduc- term. But the Senator is hoping the 1965, when it passed. I was here when 19 ing long-term costs, because seniors whole thing will go down, that all of it Members who voted ‘‘no’’ in the fall of will be able to stay home instead of will go down. 1964 voted ‘‘yes’’ in April of 1965. Do going to the hospitals in order to get Do not fool us. We know what is you know what had intervened? An their prescription drugs. And that is going on around here. I do not know if election. An election intervened. Our going to be true in a wide variety of the American people do. I hope that colleagues who were opposed to it then different areas. Sure we need some ad- they have been watching—at least went back home and gave the same vice and counsel on those. today—this debate and discussion to kinds of comments that were given, What are we doing on home care, so try to find out who is attempting to de- evidently, by the majority leader last we can give alternatives to our seniors fend the Medicare system, who believes night, according to TOM HARKIN, saying whether they want to go into a nursing in it, who, by history and tradition, is the majority leader was proud to op- home or remain home and get some a party of defending it and supporting pose Medicare when it first came up help and assistance? Where is the Sen- it. They will know because they sure and is still proud to oppose it. Those ators’ proposal on that? Where are will not know it on the first propo- were the speeches then. these proposals on it, to demonstrate And then they got a little awakening that suddenly we are interested in the sition in defense of the majority lead- because the seniors knew what was out long-term interests of our elderly peo- er’s legislation that is before us. there. The American people understood ple? Why do we not keep them out of So, Mr. President, everyone ought to what was out there. Not just the elder- high-cost facilities? Where are your have a very clear idea. I am sure the ly, but their sons and daughters had a proposals on that? Where are these pro- seniors do. There may be those around fundamental recognition that, when posals, that, suddenly we really care here who think they do not just be- people grow older in our society, they about these long-term interests? cause they are challenged with various have additional kinds of health care They are not there. They are not physical illnesses and have difficulty needs and, by and large, their incomes there because at the core of it, this sometimes in being able to hear all of go down. That is what happens, not program on Medicare has not been a the different words or read because only industrial societies, but in other program that you supported over its their sight is facing difficulty, or un- societies around the world. And, there- history, and the record shows it. Sud- able to get around. They know when fore, if we are going to be a compas- denly, to find out that you care about they are being fooled or when there is sionate Nation and care about our sen- this after, in the House of Representa- an attempt to be made a fool of. They iors—the men and women who fought tives, they used $80 billion of part A for can look through. in the wars, brought the country out of their tax program, and then a month If they take the time to read this de- the Depression, sacrificed for their later said, ‘‘Oh, my goodness, there is bate over the time here today, they children, many of whom are sitting in some difficulty in the insurance fund.’’ will know who is on their side. It is not the U.S. Senate—that there was going And some said, those who have promulgated this to be a compact. They were going to ‘‘Don’t you think we ought to go amendment, but it is those who have pay in and then they were going to be back and restore the $80 billion?’’ said, take back the giveaways, take able to receive out. ‘‘Oh, no, we are going to need that for back those tax breaks to the wealthy The Democratic alternative is not the tax cut, a tax cut which is even individuals and corporations, take perfect, but it provides for the fun- greater in the House of Representa- back that age restriction for an eligi- damental integrity of the Social Secu- tives.’’ bility increase, take back those addi- rity system for 10 years. That has been The reason we are debating this is tional taxes on working families. And testified to by the trustees themselves. they had no opportunity to do it in the let us get something out here that will But what we have not done is included House of Representatives—none, closed assure our seniors that there will not the tax goodies for wealthy individuals. down. Here we have 1 hour, and were be increases in the copays and You ought to be ashamed of yourself. thinking we were going to at least have deductibles, and that they will have I am not surprised that you do not a chance to get some kind of result, at the choice of their doctors. want to vote on this turkey. I can un- least get a chance so we can speak on We have asked to try to work that derstand that. Refuse? I would cer- these issues, to try to work out, in the out together so we can have something October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15635 that will deal with the economic chal- fundable credit, it does not do any good where we can focus on what we need to lenges, but, most importantly, assure at all for that family. do, I say to my colleague from Massa- that our senior citizens are going to Mr. President, I just want to respond chusetts, for real reform. have their contract maintained with to a couple of comments by my col- Real reform, Mr. President, is univer- the American people and with the Con- league that were made earlier. And in sal coverage. Real reform is making gress. the main, what I would like to speak to sure that elderly people can afford pre- Mr. President, I see my friend from is this argument that somehow part of scription drug costs. Real reform is Minnesota. I am glad to divide up the this debate is a scare tactic or this is home-based care so that people can live time. an effort to ‘‘terrorize senior citizens.’’ at home in as near a normal cir- How much time is on each side? Mr. President, I think that, as a mat- cumstance as possible, with dignity, The PRESIDING OFFICER. The Sen- ter of fact, that is a bit insulting to and not have to be institutionalized. ator’s side has 42 minutes and 45 sec- senior citizens. It is a bit insulting to Real reform is where there is a stand- onds, and the majority has 39 minutes citizens in our country, period. People ard of fairness. and 34 seconds. have their own wisdom. I tell you what is not real reform—re- Mr. WELLSTONE. Mr. President, I I was in a debate the other day with verse reform, where we cut $270 billion would be pleased to alternate, if my several of my colleagues at U.S. News from Medicare and at the same time we colleagues want to do that. and World Report. I said, forget all of have a $245 billion tax giveaway. Mr. COVERDELL. Mr. President, I this discussion about scare tactics. I I have been in debates with col- yield 1 minute to the Senator from Col- wish we were talking about scare tac- leagues, and they have said, I say to orado. tics so I would not use it. People have my colleague from Massachusetts, over Mr. BROWN. Mr. President, we have their own intelligence. People can fig- and over and over again, no, this is all taken more time than the other side. I ure this out for themselves. for Medicare. This is what we need to will try to be brief so the distinguished And, one more time, we have an do. This makes Medicare solvent. This Senator from Minnesota can go ahead. amendment here that now is in the sec- reforms Medicare. This is for the good. I simply want to respond to the discus- ond degree. Why are my colleagues This amendment puts them to the test. sion with regard to taxes. afraid to have an up-or-down vote on If that is the case, then vote against My amendment does not deal with this? We had the debate. Now the rub- this amendment. Vote it up or down. the tax portion. Mr. President, I am ber meets the road. I find it just unbelievable that after firmly committed to making sure the We have been saying to you that $89 all the speeches that have been given money in Medicare stays in Medicare, billion—which is what you needed for and after all the reassurances that that none of it gets used for any other the trust fund—what you are doing is have been given, my colleagues are un- purposes. Frankly, that is what is in cutting $270 billion for Medicare. willing to vote on this. That is what the bill. In addition, we have said, what is the the second-degree amendment is all Let me suggest this. Sometimes peo- meaning of $270 billion of cuts in Medi- about. It is a huge dodge from a vote ple organize demonstrations and they care juxtaposed with tax giveaways, in that people should have the courage to make the signs in advance, and it turns the main, and $245 billion that goes to make. out the signs do not have anything to people with higher income? One more time, in my State of Min- do with what the reality is. That is You can vote that up or down, col- nesota, 50 percent of senior citizens what has happened here. They made up leagues. It is time now to match your have incomes under $20,000 a year. In their signs about tax cuts for million- votes with your rhetoric. Why are you my State of Minnesota, many of our el- aires, and it turned out they no longer afraid of an up-or-down vote? derly live in rural communities, and apply. What they have done is used the Mr. President, the only people that those hospitals and those clinics have a signs anyway. are terrorized here right now are some huge percentage of their patient pay- Mr. President, the biggest portion of of my colleagues on the other side who ment from Medicare and they do not this bill deals with the child tax credit, are in terror that they might have to have a profit margin. If you go ask and it makes clear that higher income vote what they have said they believe those providers—has anybody asked people do not get it. They not only do all along. them? Anybody asked the clinics? Any- not get what everybody else gets, they Mr. KENNEDY. Will the Senator body asked the doctors? Anybody do not get anything at all from the yield? asked the nurses? Anybody asked the child tax credit. So the discussion Mr. WELLSTONE. I am pleased to physician’s assistants much less the about how you are somehow helping yield. beneficiaries? They will tell you that the millionaires out is quite misplaced, Mr. KENNEDY. Will the Senator they cannot survive some of these re- at least in this Member’s view. What agree with me that if our friends on ductions. They will not be there to de- they have done basically is made up other side of the aisle are really inter- liver health care. their signs in advance and have not ested in reforming Medicare, they So this is not about scare tactics, I been able to adjust them. would drop the tax cuts for the wealthy say to my colleagues. This is about Mr. WELLSTONE addressed the and large corporations, drop that, and some unpleasant realities. And one Chair. let us see if we cannot find some way of more time, we have in our State 635,000 The PRESIDING OFFICER. The Sen- trying to deal with this in a medium Medicare beneficiaries. It will be about ator from Minnesota. and long-term way? 685,000, or 675,000, I believe, by 2002. Who yields time? Does the Senator believe, and is it Later on, we will talk about medical Mr. KENNEDY. I yield 10 minutes. the Senator’s view, if they were pre- assistance. We have 425,000 bene- The PRESIDING OFFICER. The Sen- pared to do that, that this particular ficiaries of medical assistance. It will ator from Minnesota. proposal would be the difference? go up to 535,000. And anybody who Mr. WELLSTONE. Mr. President, I Mr. WELLSTONE. Mr. President, I wants to look at the policy carefully really welcome this debate, and in the would say to my colleague from Massa- and understand its impact on citizens spirit of debate, colleagues, I say to my chusetts his question is right on the understands that the way you view colleague from Colorado that the prob- mark, because what people are saying health care is you look at the number lem with the tax credit proposal is that in Minnesota and around the country of people who are going to be eligible, it is not refundable and that if you are is, please permit us to be suspicious be- what the existing benefits are that peo- a family with an income under $29,000 a cause you are cutting much more than ple will need to have for quality health year, you are not going to receive it. It is necessary for the trust fund, and we care and what the medical inflation makes no sense whatsoever. think you are making Medicare the level is, and these reductions fall far Where is the standard of fairness? In piggyback for tax cuts for wealthy peo- short of that. my State of Minnesota, we are talking ple. And if, in fact, you would give up I say to my colleagues, you just do about a significant percentage of the on these tax giveaways—and we were not have the credible argument. You population, families with incomes not talking about the $245 billion—then cannot cut $270 billion from Medicare under $29,000 a year. If it is not a re- I think we can get down to a discussion at the same time you have $245 billion S 15636 CONGRESSIONAL RECORD — SENATE October 25, 1995 of tax giveaways, mainly going to the lives of people back in the States. in cuts in Medicare but only $89 billion wealthy people. You cannot do it. It These proposals are very reckless with needed for the trust fund, and at the makes no sense. And with this amend- the lives of senior citizens. And it is same time $245 billion in tax cuts, dis- ment, introduced by Senator ROCKE- the intelligence of senior citizens in proportionately going to people on the FELLER, we give you the chance to vote Minnesota not because anybody is lead- top. No, that violates the Minnesota on what you say you believe in. We ing them around by their noses; it is standard of fairness. give you the chance for an up-or-down their own intelligence and their own My second point, which came to me, vote where you can match all of your insight which tells them that these is that this whole business about some speeches with your votes, where you proposals are not in their best inter- sort of a study of what the con- can look the American people in the ests. sequences of all this will be, Senators, eye and you can say we believe that all I have to say to my colleagues on the we have this that just came to us—2,000 $270 billion is necessary in order to, as other side of the aisle that your refusal pages. And my colleague from Utah, you say, save Medicare. to vote on your own proposal does whom I deeply respect, said the more I do not think you are saving Medi- nothing to reassure them. We have people in the country get to know care. I think in the name of saving been hearing your speeches forever. We about our plan the better they like it. Medicare you are destroying part of have been seeing your ads on tele- People do not know what is in this Medicare. That is what this vote would vision. You have been telling the senior plan. have been about. I think the only peo- citizens this is going to be so great, I say to my colleague from Califor- ple who are terrorized are colleagues and now you have a chance to vote nia, I have said for the last month this on the other side of the aisle who are what you say you believe in, and all of is a rush to recklessness, and it is be- terrorized that they have to vote what a sudden, I say to my colleague from cause when you talk to the people who they have been talking about for the Iowa, we see them just running away, live in the communities that are af- last 6 or 7 months. running away. fected by this and deliver the care to Mr. KENNEDY. Will the Senator That is my first point. My second Medicare beneficiaries, they are saying yield? point is that—I do not even remember this will not work. There is a dis- Mr. WELLSTONE. I will be pleased my second point. connect. Anyone can add numbers and to yield. Mrs. BOXER. Will the Senator yield subtract numbers, but, for gosh sakes, Mr. KENNEDY. Again for a question. to me for a question? colleagues, look at the connection be- If this is such a great deal for the sen- Mr. WELLSTONE. I would be pleased tween your numbers and people’s lives. iors, why do all of the seniors them- to yield for a question and then by We never had one hearing on your selves and their principal representa- then I will get my second point. final set of proposals, not one hearing, tives, the American Association of Re- The PRESIDING OFFICER. The Sen- not one expert flown in from anywhere tired Persons, Council of Senior Citi- ator’s time has expired. in the country, much less the oppor- zens, National Committee to Preserve Mr. WELLSTONE. Mr. President, I tunity to take this back to our homes Social Security/Medicare testify in op- ask unanimous consent for 3 more min- and ask the people who are affected by position to the plan? If this is such a utes so I can come up with my second this whether or not it will be beneficial great deal—we listened to these Sen- point. to them. If we had an up-or-down vote ators talk about it this morning for 5 The PRESIDING OFFICER. The Sen- on this amendment—— hours—5 hours—and then the time ator has 3 more minutes off his side’s The PRESIDING OFFICER. The Sen- came to call the roll. Oh, no, you can- time. ator’s 3 minutes have expired. not even have a vote on your amend- Mrs. BOXER. What I would love to do Mr. WELLSTONE. Then I think we ment, even though we think it is so is simply say to my friend the reason would have had an opportunity for ev- great. If it is so great, why will they he did not get to his second point is his erybody to speak. not defend that back home to their first point was so good. But I have to I yield the floor. I thank my col- seniors? Why will they not be able to say that in listening to my col- leagues. go into their senior citizens homes and leagues—and I truly was not going to Mr. ROCKEFELLER addressed the be able to justify it? participate in this particular amend- Chair They cannot do it. They cannot do it. ment. I had come over here expecting a The PRESIDING OFFICER. The Sen- And the proposal and the idea that we vote on it. What do I find? We are ator from West Virginia. want to look at medium or long term, blocked from voting. What is the other Mr. ROCKEFELLER. Mr. President, they could have done that before. They side afraid of if they are so excited this is an interesting—— could have reported out something about their plan? They are afraid to The PRESIDING OFFICER. Who with those kinds of provisions. But no, vote. yields the Senator time? suddenly when they are just about to I will tell you why they are afraid. Mr. ROCKEFELLER. The Senator call the roll, they pull this amendment Because they know that the American from Massachusetts, I believe, is yield- out and send it to the desk. people are waking up and they under- ing me time. As we have said before, this is Hal- stand now it only takes $89 billion to Mr. KENNEDY. I yield the remainder loween, and it is trick or treat time. keep Medicare solvent, and they are of the time to the Senator from West This amendment is a trick on the sen- cutting $270 billion. We know they need Virginia. iors of this country, and it should not to cut that much to come up with what Mr. ROCKEFELLER. Mr. President, I be accepted. NEWT GINGRICH calls the crown jewel of guess it is my general impression that Mr. WELLSTONE. Mr. President, let the contract, the tax breaks for the the other side, the Republican party, me respond and then just simply yield wealthy. And I say to my friend, be- does not want to vote on this amend- the floor to some of my other col- cause he has been working on these is- ment which we started hours and hours leagues who would like to speak. sues a long time, in his hometown and ago. We have had all kinds of delaying First of all, let me just say to the his home State, do seniors understand tactics and we had second-degree and Senator from Massachusetts and my why the Republicans want to give first-degree amendments, talks about colleague from Iowa—if I could get $5,500 a year back to people who earn all kinds of time agreements, but not a their attention just for a moment—it is over $350,000 while they destroy Medi- vote, not a vote. very interesting; you asked the ques- care, Medicaid, student loans, and for I have not been on the floor. I have tion, if this is so good for senior citi- God sakes repeal nursing home stand- been working with our leader, but I as- zens and represents such good reform, ards? Do the people in his State under- sume that this point had been made with all the promises that have been stand that? over and over again. One of the things made, how come all of the organiza- Mr. WELLSTONE. Mr. President, I that I think seniors should be aware of tions and all the people who are going would say to the Senator from Califor- is—which has not been talked about at to be affected by this are opposed to it? nia, no. And I think this becomes an all in the Republican amendment for The answer is there is a huge dis- issue of Minnesota fairness and people Medicare, which cuts $270 billion out of connect between these proposals and just do not find it credible—$270 billion Medicare—is something called the October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15637 BELT agreement. It is not GATT, it is the wealthy. And it becomes an abso- I would add that under the Republican not NATO, it does not have forces, but lute limit on what Medicare will con- $270 billion cut, Medicare will be it has lethal effect, absolutely lethal tribute to seniors’ health care. May I squeezed in its growth rate at 4.9 per- effect. And it is tucked away inside the repeat that? It becomes an absolute cent per person. Now, you go into the Republican Medicare plan. And BELT, limit, a ceiling, on what Medicare will private market, private health insur- because I know you are anxious to find contribute to Medicare regular enroll- ance, that is going to grow at 7.1 per- out, stands for the ‘‘budget expenditure ees, non-HMO seniors’ health care. cent. But they are going to hold it limit tool.’’ Interesting phraseology. Second, if Medicare’s bill exceeds down to 4.9 percent for Medicare. It is a budget gimmick that poses a this limit, the BELT, which is the very dangerous threat to our senior budget expenditure limit tool, imposes Now, this is for your Medicare. So citizens. And when our colleagues on automatic—what is my next word?—re- what is going to happen? Obviously, the other side of the aisle say we are ductions, reductions, arbitrary in na- spending for Medicare, because you do trying to scare senior citizens, one of ture, in key Medicare spending in the not reduce the price of health services the things that comes back at me is, do following year, imposing cuts in Medi- simply because you reduce the amount our senior citizens even know the be- care; for example, inpatient hospital of money that you are willing to pay, ginning of what they would be getting services, reductions in expenditure for to make available to pay for them, the into if we ended up with the Repub- inpatient hospital services, inpatient price will continue to rise as it has in lican amendment to cut $270 billion hospital services for seniors; home the past, but the amount of money will and other matters, for example, the health services, reductions; hospice be much less. So what, in fact, you BELT agreement? care services, reductions; diagnostic have guaranteed is this BELT proce- Now, let me tell you what the BELT tests, reductions; physician services dure. agreement does. This is the Republican and outpatient hospital services, reduc- Mr. HARKIN. Not only that, if the device that will make automatic cuts tions, Mr. President. Senator would yield further, not only in Medicare for years to come—for I am sorry, I am sorry, this is in the that, not only the price increase, but years to come—automatic cuts, no leg- Republican plan. No, we have not heard the number of elderly is going to in- islative authority, automatic cuts. And about it because we did not have much crease. People are living longer. They what will the cuts be made for? They time. And, no, we did not hear about it are healthier so they are living longer. will be made for the GOP tax breaks in the Finance Committee because we So you will have more people in that for the wealthy. spent about a total of 10 minutes de- bracket in the future. The budget gimmick is labeled, as I bating this entire thing—10 minutes indicated, the ‘‘budget expenditure per side. So the belt is going to tighten even limit tool.’’ And it is the Republican Mr. HARKIN. Would the Senator harder and faster because of both of secret plan to make automatic cuts in yield? those. I am just shocked about this. I the traditional—now catch my words— Mr. ROCKEFELLER. I would be am glad that the Senator brought this fee-for-service Medicare Program. Now, happy to, although I have my third up. I daresay, there are very few people remember what we have been hearing Draconian measure that I would like to who understand this. We are indebted this afternoon at great length is that mention. to the Senator from West Virginia for Mr. HARKIN. This is startling news ‘‘No, no, no, don’t worry about these pointing this out. I just still find this to this Senator. I am not on the Fi- things called HMO’s. Don’t worry incredible that this would be buried in nance Committee. this bill. about that, because 90 percent of sen- Is the Senator saying that this BELT Mr. ROCKEFELLER. That is the iors are already in the fee-for-service provision, which sounds to me like the program. Of course they’ll be staying old sequestration, whereas, if you do point, I say to my friend from Iowa. in the fee-for-service program.’’ not hit certain targets, there is auto- And what is absolutely incredible is I So all seniors are meant to relax matic across-the-board cuts, is that have sat here under limited time, to be when they hear that argument. But what is going to happen, automatic, in able to discuss any of this, this after- they do not understand the BELT all these services? noon for hours, and I have heard all of agreement, the BELT agreement, Mr. ROCKEFELLER. The word ‘‘se- this talk about this glorious—‘‘All which is the ‘‘budget expenditure limit questration’’ is the perfect word. those seniors in the fee-for-service tool.’’ And what it does is makes auto- Mr. HARKIN. Well, what the Senator Medicare Program are going to be matic cuts in the traditional fee-for- from West Virginia is talking about, happy. We don’t do anything. They are service Medicare Program, without any are these BELT provisions, are they in just there. They don’t have to join the action by Congress or the President, this 2,000-page reconciliation bill? Is HMO’s. They will be in that 90 percent for the next 7 years into the future. that what the Senator is saying? They of happy folks that we are going to do Now, how would it work to hit sen- are in this big thick bill someplace? nothing to cut their services and life iors? First of all, it would put GOP, Re- Mr. ROCKEFELLER. Yes. will go on.’’ But this BELT procedure publican, priorities ahead of seniors’ Mr. HARKIN. I wonder what else is is reserved exclusively for them, I say health care needs in three ways. hidden in here. Two thousand pages, to the Senator from Iowa. First, the BELT—this budget limita- and we got it yesterday—2,000 pages. tion tool for seniors on fee-for-service So they are going to cap this at 4.9 Who knows what is hidden in here— percent, even though the private cost Medicare, ordinary Medicare, 90 per- 2,000 pages. We have not had 1 day of cent of seniors—it would set a fixed an- of health care costs are going to be 7.1 hearings on it, not 1 day. And now the percent. So it is automatically guaran- nual target on Medicare spending. Oh, Senator from West Virginia has teed there is going to be a shortfall, at we have not talked about that this brought up something that this Sen- which point the sequester falls in, the afternoon. We have not talked about a ator was totally unaware of, I will be BELT falls in, the reductions are made fee or an expenditure limit on Medicare frank to admit to everyone. spending. I have not heard that from Why? We have not had a chance to in inpatient hospital services, home the other side this afternoon, because look at this or have hearings and know health services, hospice care, diag- everything was geared to have seniors what is in it. What the Senator is say- nostic tests, physician services—that believe, so long as they were in the ing is buried in these 2,000 pages, which means visiting a doctor—and out- Medicare fee-for-service portion that no one knows what is in there, is a pro- patient hospital services. That is the they are now in, that life continues to vision that will allow for services to whole ball game in health care. There be cheerful and wonderful and there is the elderly, in all the areas the Senator is not much else you can do. no worry. ‘‘Don’t worry about that, just outlined, to be automatically cut, I will say, I made a mistake, because HMO’s.’’ But they did not tell us about automatically without any vote of this the third part of this is that under the BELT. body or of the Congress of the United plan, since the first-degree amendment So a fixed annual target is set on States. I find that incredible. I almost of the Senator from Colorado wiped out Medicare expenditures representing the cannot believe it. the $89 billion reduction in Medicare amount necessary to secure the funds Mr. ROCKEFELLER. If the Senator and supplanted it with a $270 billion that Republicans need for tax cuts for will yield to his incredulity and mine. Republican one, what I failed to say S 15638 CONGRESSIONAL RECORD — SENATE October 25, 1995 was that, in fact, they have been at ator from West Virginia, in saying that I thank the Senator. He has done a least kind enough to say that the Con- with this BELT provision, it is just an- great service in bringing this to our at- gress could adjust this BELT or do other way of taking away more choice tention. something with this BELT procedure, for the elderly? Mr. ROCKEFELLER. I thank the but only under a supermajority. Mr. ROCKEFELLER. The Senator is Senator from Iowa. I just simply say I am not sure what a supermajority correct, but I will add a further dimen- that it is a shocking thing. It is a hid- is, but it has to be at least 60 percent. sion. It is another aspect in what it is den thing. It is malicious to seniors, It is probably closer to 661⁄3 percent, that our Republican colleagues have to and it is particularly embarrassing, I which means that the Congress would do, driven by this Contract With Amer- think, in the context of fair debate, not do it, so the BELT would be in ef- ica, in order—you see, there is a reason when people all afternoon have been fect. for this. You do not do it because you talking about the fact that seniors on Of course, BELT threatens access to want to do it, you do it because you Medicare in the regular fee-for-service choice. It applies only to Medicare fee- have to get that tax-break money. Medicare system, which is 90 percent of for-service expenditures. It hits only Mr. HARKIN. I am beginning to see. the system now, will continue to have seniors who want to keep their current Mr. ROCKEFELLER. That is why this wonderful existence, when they doctors. As a result, this budget gim- you have to come up with gimmicks know perfectly well that what they are mick will discourage doctors from ac- like this which you do not talk about doing is they are capping expenditures. cepting fee-for-service patients, senior on the floor of the U.S. Senate, because They are capping expenditures several patients, which, for reasons which we you do not want anybody to know percentage points below what they now understand much more clearly be- about it. know the cost of expenditures will rise cause of what is hidden in this Repub- Mr. HARKIN. I ask the Senator from in health care and then guaranteeing, lican plan since obviously their pay- West Virginia if he will yield for an- therefore, the sequestering followed by ments will be cut, the physician pay- other question. Then in the substitute the reduction in services on all fronts ments will be cut, threatening the ac- that was offered by the Senator from of health care for Medicare patients. cess of seniors to doctors’ offices of West Virginia earlier today, on which Then the only way you can get out of their choice. they will not allow us to vote, it looks it is through a supermajority, which I If there is anything you can say to a would assume is two-thirds of the Con- senior that will justifiably terrify that like, that BELT provision is not in the substitute of the Senator from West gress, both the House and the Senate, senior, it is that you are going to take which I think would be very hard to do. that senior’s doctor away. Virginia? Mr. ROCKEFELLER. There is noth- It is also interesting that—well, Med- All afternoon we have been hearing icare recipients on top of this will pay that is not going to happen, but it is ing—nothing—in the Democratic amendment which has that. more out-of-pocket expenses. In other the current beneficiaries who are going words, there is going to be $700 less per Mr. HARKIN. And one last question to be hit the hardest. I just would very beneficiary in the year 2002. It is going of the Senator from West Virginia, much like for my colleagues to under- to double deductibles, raise premiums, then. The only reason he can discern stand a new concept called BELT, raise the Medicare eligibility age to 67. for having this provision in there is budget expenditure limit tool, which These are all very important, very only so the Republicans can get their automatically, if costs go up too troublesome problems. Private health $270 billion cut in Medicare to fund the much—which, of course, they will—it premiums will be increased, as the mi- $245 billion tax break; is that correct? automatically sequesters and then re- nority leader indicated, by cost-shift- Mr. ROCKEFELLER. To the Senator duces virtually all health care services ing. Hospital closings will take place in I say, you have to get your money for seniors. Nobody in this building States like West Virginia and, I as- somehow. If you are going to cut to get knows about it. sume, Iowa. I think most rural States. Mr. HARKIN. Will the Senator yield? all this tax-break money, you have to Frankly, it is my judgment that doc- Mr. ROCKEFELLER. Virtually no- go to where the money is. The money tors will be driven out of the program body in the Finance Committee knew is in Medicare. The money is in Medic- and will be turning away Medicare re- about it, because we only debated the aid. There is some money in the earned cipients. thing for about 10 minutes. Now, the income tax credit, which they call a Mr. HARKIN. If the Senator will Senator from Iowa and the Senator welfare program, which is very inter- yield again on that point, I will just from West Virginia know about it, and esting to me, because how come those say, if you have fee for service and the perhaps some others do, too. same people then pay a personal in- doctor is taking fee for service, and Mr. HARKIN. Will the Senator yield come tax and Social Security tax? I did then you have this automatic provision for another question? not think people on welfare paid those to cut all these provisions, then it Mr. ROCKEFELLER. Of course, I taxes. will. would be very discouraging to doctors It is just a very depressing aspect of to take fee-for-service elderly. Thus, Mr. HARKIN. Again, I want to thank how far they will go. the Senator for pointing this out. I once again, that would be lying—the Mr. HARKIN. I am going to ask the intention of the Senators on the other daresay, not too many people know Senator to yield. Again, I hold up this about this hidden in these 2,000 pages. I side of the aisle that they want to pro- poster. I talked about it earlier. But vide more choices for seniors. They can just received a piece of paper on this just in light now of what I have found which indicates that BELT applies say it all they want. You can say the out from the Senator from West Vir- Moon is made out of cheese, but that only to Medicare fee for service. So it ginia of what is hidden in this bill re- would hit only those elderly who want does not make it so. The facts are that minds me of what the majority leader this bill is going to push the seniors to keep their current doctors; is that said just last night, and I will quote right? out of their fee for service. again for the RECORD: Mr. ROCKEFELLER. That is correct. If the Senator will yield further for a The Senator is 100 percent correct. I was there fighting the fight—voting question, I want to ask the Senator Mr. HARKIN. Wait a minute. I had against Medicare—one of 12—because we what the Republicans are trying to do been led to believe by the other side knew it wouldn’t work in 1965. here with their $270 billion cut—and that they want to give seniors choices, That was the majority leader just now with this BELT gimmick that I more choices; that they do not want to last night. never heard about before—how that shoehorn or force the elderly into man- So I guess I would say, who do you would work for an elderly person who aged care systems but leave them their trust? I keep hearing from the other just wrote me this letter from Iowa. A choices and their options. side that they want to save Medicare. husband and wife—I will not use their But now what this says is that this From what the Senator from West Vir- names, because I do not have their per- BELT, this thing which would have ginia just pointed out on this BELT, it mission yet. I will get in touch with these across-the-board cuts in all these ought to be called the ‘‘knife,’’ because them to ask for permission. Their total areas, would apply only to fee for serv- it is really cutting Medicare. That is income per year with Social Security, ice. Again, am I correct, I ask the Sen- what they are doing. plus they have an old house rental, is October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15639 $20,000 or less. She adds up all of their are 65; you can only get it when you If we do not begin real basic reform— health expenses and premiums, which are 67. that is, to reduce the rate of growth in totals $7,668 a year, out of a $20,000 in- Mr. HARKIN. It is going to go up to this program, and we are not talking come. She has diabetes and her hus- 67, right. The Senator is absolutely about cuts, we are talking about trying band has heart disease and a fractured right. to put some common sense into this hip socket. She had a stroke 3 months If the Senator will yield further, the program and put out there a Medicare ago. She is talking about how wonder- only thing I can come up with—and I Program that not only provides good ful Medicare has been for them. She really do not know why they are doing service but is one that we can afford. If said, ‘‘People around here are worried what they are doing on the other side we do not, the alternatives are just a that Congress is destroying the best of the aisle. I know they want to give couple. Either we can do as the Demo- programs in our country, which have tax breaks to their special interest crats have proposed, and that is extend made people’s lives so much better. My friends. I understand that. That is what the life of this program for just 2 years late grandparents lived in poverty re- they want to do. They made their so we can come back here and debate ceiving $40 a month welfare. Could we agreements and their contract, and this all over again after the next elec- live on that?’’ they want to do that. But why do they tion. Or we can do nothing and we can I ask the Senator from West Vir- believe they can take it out of the el- let the trust fund go broke, as the ginia, how could someone like this, derly? The only thing I can assume is trustees have told us it will do, in the making $20,000 a year—and I might add that they think the elderly are so gul- year 2002. Or the other option would be this: When I hear people on the other lible that they are not going to pay at- that we can go back to the taxpayers side of the aisle talk about the elderly, tention. Maybe they are so busy, like with business as usual and say we need I swear all the elderly they know live this couple, paying their bills and mak- another $388 billion to keep this pro- in Beverly Hills, or Palm Beach, or ing ends meet that they are not going gram status quo—business as usual. something like that, because in my to pay attention to what happens here. Maybe they feel that. I hope not be- That is what the Democratic answer State of Iowa, 80 percent of the senior has been over the last 30 years. Seven citizens make less than $20,000 a year, cause, I am telling you, the elderly have to understand that this is going times they have gone to the taxpayers and 50 percent of the elderly in Iowa and said, ‘‘We need more money for have incomes of $10,000 a year or less. to hurt and hurt badly for the next 7 years. this program,’’ and raising taxes has That is what we are talking about. always been the answer—never real re- Mr. WELLSTONE. Will the Senator Mr. ROCKEFELLER. If the Senator will yield, I think there is a very inter- form, never restructuring the program, yield for a second? How much out-of- esting point that goes along with all of never trying to make it sound. Just pocket do they pay on health care ex- this. The majority party—the Repub- more taxes. Throw more money at the penses right now? problem and get us by another couple Mr. HARKIN. Well, right now about lican Party—has accused us of ‘‘fear of years; just limp into the next cen- 21 percent of their income. So if they mongering,’’ and scaring seniors. Yet, for a long period of time—and in telling tury, and we will come back and ad- have $20,000 a year, you can figure right the truth, everybody is entitled to dress the question then. Then the link- away that 21 percent of that—about their own opinion but not their own age, the demagoging, of always $270 bil- $4,000 a year—is going for out-of-pocket facts. We have been talking about some lion in reduced growth—not in cuts, expenses. One-fifth of their income is of the facts which the Senator and I but reduced growth—and they link this going out. Under the Republicans’ pro- have discussed this afternoon, a rel- always to $245 billion in tax relief. posal, that will go up, over the next atively new fact in that 2,000 pages. They seem to have some kind of an ob- several years, to 31 or 32 percent. So it But, hopefully, more people will know jection to letting Americans keep more will be one-third of their income that about that. What is interesting is that of their own money. would go out. Right now, for us who the American Hospital Association If this were a repeat of the 1993 are working, it is around 7 percent, 8 really did not get very much—even percent of our total income that goes record increase in taxes they would be though they are getting terrible cuts, down here in a second to vote to raise for health care. So in Iowa, where we they did not get involved too much in have 50 percent of our people making your taxes. But if there is any talk taking all of this on. about tax relief for American families, less than $10,000—and I have this letter The PRESIDING OFFICER. The time hard-working families, they just dema- which is a heartbreaking letter, where of the Senator has expired. she talks about how much they have to The Senator from Michigan has 38 gog this to death. They do not want pay for their premiums, what they minutes. you to keep any more of your money. have to pay for their deductibles and Mr. ABRAHAM. At this time, I yield Somehow, somehow the thought and their prescription drugs. Their income 7 minutes to the Senator from Min- the notion in this Capital City has been is $20,000 a year, Mr. President, and nesota. that the money belongs to Washington. they are paying $7,668 a year out-of- Mr. GRAMS. Mr. President, if this is We are going to decide how much to pocket. I ask the Senator from West a contest of volume and rhetoric and dole back to you, the hard-working Virginia, what hope would there be for half truths, we are going to probably Americans. this couple under the Republican pro- come in second best. I would like to try Those who get up every morning, go posal, cutting $270 billion out of Medi- to concentrate on some common sense to work and put in 40-plus hours a care? What could you tell this couple and some truth about what we are try- week, husband and wife trying to take when their premiums and deductibles ing to debate here on the floor. care of their family—they do not think are going to double, yet, their income We are really talking about a couple you can spend their money as wisely as is not going to go up? of major issues, and that is that a lot Mr. ROCKEFELLER. Well, of course, of the debate is whether we are going they can in Washington. If they allow Social Security will be cut, too, will it to put a Band-Aid over the Medicare you to keep this $245 billion over the not, under the Republican plan? Program and extend it for maybe 2 next 7 years, you might spend it fool- Mr. HARKIN. That is right. Not only years into the future of solvency, as ishly—like on food, clothing, shelter, that, but for some of the low-income the Democrats have proposed, and then education for your children. You might elderly in Iowa making less than be back here in another year or two do something stupid with your money. $10,000 a year, they are cutting the and debate this all over again, or we So, send it to Washington and they will Low-Income Home Energy Assistance are going to look at some real reform. make sure that it is spent more wisely. Program where they get a measly $80 We are going to talk about extending And talk about the scare tactics. or $100 a year to help out in that re- this program to 2012 and into the next Fearmongering—they do not spect. generation, to make sure that we se- fearmonger. They are not throwing out Mr. ROCKEFELLER. If the Senator cure, that we improve, and that we pro- scare tactics. For the last hour, we will yield, after a period of 7 years, I tect the Medicare system, not only for have sat here and listened to nothing believe it is, they are saying that you those who depend on it today, but for but scare tactics, that we are somehow can no longer get Medicare when you the next generation as well. gutting this program, that there will S 15640 CONGRESSIONAL RECORD — SENATE October 25, 1995 not be a dime for Medicare, for our sen- Is this good for seniors? Yes, Mr. Medicare dependent hospitals—the ior citizens over the next 7 years or be- President, it is good for seniors. It will 1993 budget let this program expire. We yond. make sure that Medicare is protected are going to reinstate that. The pur- If that is not a scare tactic, telling and preserved. pose is to assist facilities in high Medi- every senior citizen in America if we do Mr. WELLSTONE. Will the Senator care patient loads to continue. not buckle under and not give any tax yield? The extension of the sole community relief or raise taxes, that somehow all Mr. GRAMS. I just have a few min- hospital status, hospitals that have Medicare will disappear. My grand- utes left. less than 50 beds, 35 miles away from mother is one that got one of these The PRESIDING OFFICER (Mr. the nearest hospital, will continue. scare tactic letters from her Demo- ABRAHAM). All time has expired. This is good stuff for rural America. Mr. GRAMS. I think this is some- cratic Congressman in northern Min- It levels HMO payments in Medicare. thing that is so important that we can- nesota. It said that somehow the Re- There is a great disparity now. We set- not ignore it, and we have to make publicans are going to put you into the tled that on the basis of fee-for-service sure that Medicare is preserved and street because they are going to take as it existed. In Bronx County, New protected not for an additional 2 years away Medicare. York, $678 can be paid per month for but for the next generation. Now, for a 92-year-old bedridden HMO’s and Medicare; Fall River Coun- woman to get a letter like this, if this I yield the floor. Mr. FRIST. Mr. President I yield 8 ty, South Dakota, on the other hand, is not scare tactics, I do not know what gets $177. We will fix that. That is good is. To hear the rhetoric we have heard minutes to the Senator from Wyoming. Mr. THOMAS. Thank you, Mr. Presi- for rural America. and will continue to hear, if that is not dent. Medicare bonus payments to physi- scare tactics, without addressing the I come to change the tone a little bit. cians will be increased from 10 percent problem, if the problem is so bad, I have been sitting here for 5 hours and to 20 percent. We talk about bringing where have the Democrats been over have heard nothing but negative, de- service providers into the rural area. the last 30 years? How come all of a pressing kind of things. This will do that. Telemedicine sudden we are on the brink of disaster, I am excited about the opportunities grants—we have a great opportunity to if they have all the answers today? that we have. I am excited about the increase services with telemedicine I do not know why a $500 per child opportunities that we will have to do grants in rural communities. tax credits somehow does not work in something that the people who have I understand the marketing device, of with their plan. been complaining here have not done being opposed—there are some very Another thing, the $270 billion in re- for 30 years. We will have a chance to positive things here, starting with the forming Medicare. Now, if we do not do balance the budget. We have not done fact if you do not do something, it this, again, the trustees are saying it it for 26 years. We will have a chance to fails. Second, you can preserve it for 2 will go broke, that somehow Medi- do something about welfare. We have years or you can preserve it for longer care—we know that over the next 7 not done it for all these years. We will than that, and we are going for the years any savings in Medicare has to save Medicare. We have not had a plan long haul. remain within the trust fund. There is to do that. We will leave a little more There are positive things here. One of a fire wall. money in the pockets of Americans. them is the help for rural areas, like In fact, Republicans have an amend- Now, that is not a bad idea. That is a my State of Wyoming. I am very ment, as our amendment notes, using pretty positive kind of a thing, it pleased we are looking forward, in Medicare savings for tax cuts would be seems to me. these next 2 days, to do some positive illegal under the Finance Committee Frankly, I get a little weary of the things. I hope we begin to talk about bill. The Senate committee bill says it same folks that have been here, who the benefits that can accrue, benefits would be illegal to use it for anything have brought us where we are, that we that will accrue, rather than seeking but Medicare. need changes, and they resist changes, to worship the depressing scenario we There is no linkage. The only way we and expect something different to hap- have been going through for the last can have tax relief is if we reform it pen by doing the same thing. I do not couple of hours. and balance the budget. If we can do understand that. I yield the floor. that, then the benefits are going to be That is what we have heard all after- Mr. SARBANES. Mr. President, I rise some tax relief for hard-working Amer- noon. Do not change anything. Things today to join my Democratic col- icans who have been paying $245 bil- are not good, but do not change them. leagues in expressing deep disappoint- lion—do you realize that is only 1.5 Someone mentioned the difficulty in ment and outrage at the way in which percent of our total expenditures over rural States. I come from a rural State. those on the other side of the aisle the next 7 years? As a matter of fact, there are a number have chosen to handle this critical But it sounds like that if somehow of things here that I think will be issue. we give this small tax relief to Amer- greatly strengthened, including the ican residents and hard-working mid- health program in rural areas. Several weeks ago, I participated in dle-class families, that somehow this There are several specific things here hearings organized by Senators KEN- whole country is going to unravel; if that I want to mention. One is limited NEDY and ROCKEFELLER because it we take this $245 billion and shift it service hospitals. We have, over time, was—and remains—my view that the out of Washington and into the hands developed hospitals. We were encour- public ought to have the opportunity of families, that somehow this whole aged over the years—properly—to de- to review and understand what is being country is going to collapse, because velop full service hospitals in small proposed by congressional Republicans we have taken another $245 billion towns. Quite a few of them sometimes with respect to the Medicare Program. from bureaucrats in Washington to were just 20 miles apart. During these hearings, we heard tes- spend as they want. In Wyoming, we had a hospital with timony from the trustees of the Medi- So, again, one other thing I want to 4 percent occupancy. It cannot exist at care Trust Fund. We believed it was mention, if the Government is going to that. So it has to fail. important to hear from the trustees in somehow pay for all of this, if we can- So we will change in this bill the order to give them the opportunity to not afford it ourselves, how can we af- qualifications of a hospital so that you clarify any misrepresentation of their ford to pay taxes to let the Govern- can have a limited service hospital, annual report on the future solvency of ment do it? We cannot. still be reimbursed by HCFA, the Fed- the Hospital Insurance Trust Fund and If we cannot as a society, as individ- eral Government for stabilizing facili- to get their analysis of the Republican uals or as families, somehow afford ties, for emergency facilities, so you proposal to cut $270 billion from the this, is the Government automatically can move to the next hospital. It would Medicare Program. going to have enough money in Wash- be a great asset. You need something What we found was that the Medicare ington? They will tax it away. Wash- in a town but you will not be able to trustees do not even suggest that $270 ington does not create wealth. It col- have a full service hospital. That will billion is required to address the prob- lects it and redistributes it. be done here. lems of the trust fund. In fact, the October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15641 trustees made it very clear that $89 bil- further large tax benefits to very They will tell you that they do believe lion over the 7 years is all that is re- wealthy people. in a balanced budget. quired to address short-term solvency Mr. President, it would be truly irre- Ask them if they think there ought issues of the Hospital Insurance Trust sponsible for the Congress to approve to be some limits on what is spent on Fund. In a recent letter to Republican sweeping and drastic changes to the a Government program, health care or leaders DOLE and GINGRICH, Secretary Medicare system without a thorough anyplace else, and they will say, yes, Rubin specifically states, and I quote discussion of what those proposals there should be. him: mean to our Nation’s health care sys- That provision is in the bill to guar- No member of Congress should vote for $270 tem, and to the people it serves. We antee that costs do not exceed spending billion in Medicare cuts believing that reduc- have not been afforded the opportunity targets. tions of this size have been recommended by for such a discussion and I regret that The impression was left from the de- the Medicare Trustees or that such reduc- we will also not be afforded the oppor- bate between my colleague from Iowa tions are needed now to prevent an imminent tunity to have straight up-or-down and my colleague from West Virginia funding crisis. vote on this amendment. that this has never happened before. It The amendment offered by Senator The PRESIDING OFFICER. Who did happen before. In 1987 there was a ROCKEFELLER gets right to the heart of yields time? reduction of 2 percent, so do not say this issue. Senator ROCKEFELLER’s Mr. FRIST. Mr. President, I yield 4 this is a provision that has never been amendment would recommit the Medi- minutes to the Senator from Iowa. applied before. It has been applied be- care portion of the reconciliation bill The PRESIDING OFFICER. The Sen- fore. Do not say that this is a system with instructions to the Finance Com- ator from Iowa. Congress has no control over, because mittee to eliminate cuts beyond the $89 Mr. GRASSLEY. Mr. President, the the law provides for a review by Con- billion that the Medicare actuaries cer- amendment that has been offered by gress. And if Congress wants to bite the tify is necessary to ensure solvency of the other side of the aisle is a state- bullet and take action before the Presi- the trust fund through 2006. ment that the Members on the other dent does, we can and we should and we Now, we find out that we will not be side of the aisle have lost their nerve. will. permitted a straight up-or-down vote They have lost their nerve to really do The PRESIDING OFFICER. Who on this amendment. I say to my col- something big about Medicare before it yields time? leagues on the other side of the aisle, if is too late. Mr. FRIST. Mr. President, I yield 7 you believe as you say you do, that a We all know from the President’s minutes to the Senator from Okla- $270 billion cut is needed to save the own people that Medicare will be bank- homa. Medicare Program, then this vote rupt in the year 2002. This bill put forth should be simple and we should all The PRESIDING OFFICER. The Sen- by the majority party guarantees that have the opportunity to make our posi- ator from Oklahoma. Medicare will not be bankrupt by the tion clear on this important matter. Mr. NICKLES. Mr. President, first I The effort to prevent a clear, re- year 2002. wish to compliment Senator FRIST, Dr. corded vote on Senator ROCKEFELLER’s The plan that is put before us ad- FRIST from Tennessee, for his leader- motion is even more distressing in dresses only the part A trust fund. We ship on this issue. I think he has light of the absolute refusal of the Re- all admit that there is a crisis in part brought a great deal of experience and publican leadership to hold the kind of A, because it is growing at a very ro- expertise on the entire health care open, public hearings that an issue of bust clip of 8.4 percent. But their plan issue. I compliment him for it. this magnitude requires. What they does nothing to address part B. Part B I also wish to compliment the Sen- have done is spring the legislation on is growing, as we know, at 14.5 percent, ator from Colorado for this amend- us and then immediately move to mark an unsustainable rate. So I think we ment. The amendment that we have it up and report it to the floor without all have to question their logic, that basically says this reports with in- any chance for careful examination or they raise a point about 8.4 percent structions back to the Finance Com- thought as to what its implications are being a crisis but will forget about the mittee to make sure that we have a for our senior citizens. They try to part of Medicare that is growing al- lockbox provision to make sure all the move it so fast that people cannot, in most twice as fast, at 14.5 percent. savings or changes that we have in part effect, identify what is being done. It is a simple fact, if we do not act B go into the savings in part A so it The best description of what they are now, there will not be a system around will help make sure part A does not go doing was given, in my judgment, by when baby boomers retire. The longer bankrupt. the Republican political analyst, Kevin we put this off, the harder it will be to Our colleagues on the other side do Phillips, in a recent radio interview address. Just look at how difficult a not have that in their provision, but I where he was quoted as saying—now time we are having to apply a stitch in think it is a very good, solid provision. this is not me talking; this is the Re- time. The scare tactics being used now It is one the Finance Committee adopt- publican political analyst Kevin Phil- by the Democrats, of course, will look ed. This is kind of a second key on the lips. And he said, and I quote him: like Halloween compared to what we lockbox to make sure that of any of This revolutionary ideology driving the will see if we continue to put these re- the costs that would be incurred by new Republican Medicare proposal is all so forms off until the years 1999, 2000, 2001. beneficiaries, that 100 percent of those simple. Cut middle-class programs as much Maybe they will not even be dealing costs go directly into the solvency of as possible and give the money back to pri- with it in the year 2002. part A. I think that is an excellent vate-sector business, finance and high-in- Then I look at the recent discussion amendment, so I compliment my col- come taxpayers. Rhetoric about the cuts from the other side of the aisle on the league and I urge my colleagues to sup- being to save Medicare is politics, not under- provisions dealing with what is called port this amendment. lying GOP motivational reality. Remember, the BELT. at the same time as the Republicans propose Some people have alluded to the fact, to reduce Medicare spending by $270 billion We have been fed a lot of horror sto- well, we do not really have a problem over seven years, they want to cut taxes for ries by the other side. If I get any mes- with Medicare. I beg to differ. The corporations, investors and affluent families sage from the seniors of America, it is trustees report clearly states we do. We by $245 billion over the same period. This is this. They think the cost of medical have seen charts that next year under no coincidence. care is too high and they blame us, be- Medicare we start paying out more The fact of the matter is, the Repub- cause it is a Government program, for money than we take in, and that over lican Medicare reform proposals are it being too high. They expect us to do a 7-year period of time the trust fund is not about saving Medicare or about something about the bills. They expect totally used up and then they cannot protecting senior citizens. They are not us to do something about the cost of pay the bills. That is not acceptable. about true reform. To reform, by defi- Medicare. This provision only makes That is not an alternative that is nition, means to make better or im- sure that Congress lives within its agreeable or acceptable to anyone. prove by removing faults. I submit that spending targets. Some say the $89 billion would solve this entire reconciliation package is Ask any senior anywhere in America the problem. It does not solve the prob- driven by an insatiable desire to give if they believe in a balanced budget. lem. It does not even come close to S 15642 CONGRESSIONAL RECORD — SENATE October 25, 1995 solving the problem. If we take the does anyone know what the maximum he is using a rosier scenario, forecast- changes that we have proposed in the tax rate is, if someone paid maximum ing a lower growth rate in Medicare Finance Committee, reiterated by the taxes in Medicare in 1978, what the costs, but there is very little difference amendment that we have from the Sen- total tax was for them and their em- in outlays between what the President ator from Colorado, we are ensuring ployer combined? It was $177. is estimating we are going to spend in the trust fund. We are saying we are Do you know what the maximum tax Medicare than what we estimate using going to make some changes in part B, rate was in 1993? It rose a little bit. It the Congressional Budget Office. Why as the trustees said we should, because went from $177 to $3,915. And today it is did we use the Congressional Budget the part B trust fund has problems, it even more, because we took the cap off. Office? Because that is what we agreed is running out of money. We take those So it went from $177 to over $4,000 in a to use. That is what the President said savings and use that to ensure the sol- period of 15, 17 years. There are unbe- he would use when he gave his State of vency of part A. That makes sense. lievable increases in premiums, and the Union Message. He said he was We are going to keep part A solvent, that is still not enough. It is an unbe- going to use the Congressional Budget not just for 2 years but, really, for lievable increase in taxes, and it is still Office. Now he is not doing it. Now he more than 10 years. I think that is an not enough. is not doing it. But we are. excellent step in the right direction. So what did we do? We said, let us re- Mr. President, I am going to ask What have we done in the past when we duce the rate of growth in spending. unanimous consent to have printed in had a problem under Medicare? In the Some people said, you are cutting $270 past we have had problems. We have billion. We are spending, today, $178 the RECORD the Medicare spending had reports from the trustees, as was billion in Medicare; in the year 2002 we comparisons, both by this budget reso- alluded to by some of our colleagues, are going to spend $286 billion. That is lution that we have before us and by that it is running out of money. What an increase. I am going to put into the the President, and tell my colleagues that over the 7 years, our plan says we have we done? Every time in the past RECORD how much Medicare spending what we have done is we have increased is increasing every year. Most people should spend $l.655 trillion, and the payroll taxes and we have had big, big said 6.4 percent. I have said that. Actu- President, over that same period of increases in payroll taxes. ally, it averages out right at 7 percent. time, spends $l.676 trillion, a minuscule There are only two ways you can So I will put this into the RECORD. difference in the total spending over solve the Medicare trust fund problem. It is interesting. I went back to see that period of time, of $21 billion—the You either increase the money going what the President’s figures were when difference in outlays between the in—that is paid for by a payroll tax. he revised his budget on June 22, 1995, President’s budget and our budget Presently we are paying 1.45 percent; what the President’s figures were for granted that he uses OMB and a rosy the employee pays that. The employer Medicare. Guess what? He proposed scenario. matches that. So it is 2.9 percent of changes. He uses OMB. He uses a dif- Also, Mr. President, I am going to payroll going to fund Medicare. That is ferent baseline, uses different growth ask unanimous consent to have printed what we are doing today. rates, but the differences in outlays are in the RECORD the growth rates of the When we have had problems in the minuscule. maximum amount taxable for Medi- past, how have we financed it? We have In 1995, he estimates we are going to care, the tax rates, and the maximum financed it with a big increase in pay- spend $4 billion less than what CBO amount paid, because it will shock our ment, in taxes. That is what the trust- does. He says 174. In 1996, we estimate colleagues to find out that in 1978 we ees said we are going to have to do. We we are going to spend 193 in our pro- were spending total taxes of $177, and are going to have to have big payroll posal; the President says we are going today the maximum tax is over $4,000. tax increases to solve the problems in to spend 192—almost identical. In 1997, That is still not enough. That says we the trust fund or we are going to have we estimate we are going to spend $207 need to reduce the rate of growth in to reduce the rate of growth of expendi- billion, a 7 percent increase. The Presi- this program, not increase taxes. tures. dent says we are going to spend $208 I compliment my colleagues for this We elected not to increase taxes. billion. In 1998, there is only $3 billion amendment. That is unheard of. Because I will tell difference. In 1999, the President said you something—I want to put some- we should spend $5 billion more. I yield the floor. thing in the RECORD. In the past, all My point being there is very little There being no objection, the mate- Congress has ever done is increased difference in outlays estimation. rial was ordered to be printed in the payroll taxes. I just ask a question, Granted, the President is using OMB, RECORD, as follows: MEDICARE SPENDING COMPARISONS [Gross mandatory outlays; dollar amounts in billions]

7-yr aver- 1995 1996 1997 1998 1999 2000 2001 2002 7-yr total age

Senate Reconciliation ...... $178 $193 $207 $220 $234 $250 $267 $286 $1,655 ...... Growth over 1995 ...... $16 $29 $42 $56 $72 $89 $108 $411 ...... Percent growth ...... 9 7 6 6 7 7 7 61 7.0 President II ...... $174 $192 $208 $223 $239 $254 $271 $289 $1,676 ...... Growth over 1995 ...... $18 $34 $49 $65 $80 $97 $115 $458 ...... Percent growth ...... 10 8 7 7 6 7 7 66 7.5 Sources: CBO & OMB: Provided by Senator Don Nickles, 10/24/95. INTENSIVE CARE—MEDICARE TAX RATES AND WAGES INTENSIVE CARE—MEDICARE TAX RATES AND WAGES INTENSIVE CARE—MEDICARE TAX RATES AND WAGES SUBJECT TO TAX FOR A SELF-EMPLOYED INDIVIDUAL SUBJECT TO TAX FOR A SELF-EMPLOYED INDIVIDUAL SUBJECT TO TAX FOR A SELF-EMPLOYED INDIVIDUAL 1966 THROUGH 1995 1966 THROUGH 1995—Continued 1966 THROUGH 1995—Continued

Maximum Contribution Maximum Contribution Maximum Contribution Year taxable rate (per- Amount Year taxable rate (per- Amount Year taxable rate (per- Amount amount cent) amount cent) amount cent)

1966 ...... $6,600 0.35 $23.10 1980 ...... 25,900 1.05 271.95 1994 ...... no limit 2.90 unlimited 1967 ...... 6,600 0.50 33.00 1981 ...... 29,700 1.30 386.10 1995 ...... no limit 2.90 unlimited 1968 ...... 7,800 0.60 46.80 1982 ...... 32,400 1.30 421.20 1969 ...... 7,800 0.60 46.80 1983 ...... 35,700 1.30 464.10 Total taxes paid (1966–93) ...... 22,938.70 1970 ...... 7,800 0.60 46.80 1984 ...... 37,800 2.60 982.80 1971 ...... 7,800 0.60 46.80 1985 ...... 39,600 2.70 1,069.20 1972 ...... 9,000 0.60 54.00 1986 ...... 42,000 2.90 1,218.00 Mr. FRIST. Mr. President, par- 1973 ...... 10,800 1.00 108.00 1987 ...... 43,800 2.90 1,270.20 1974 ...... 13,200 0.90 118.80 1988 ...... 45,000 2.90 1,305.00 liamentary inquiry. How much time re- 1975 ...... 14,100 0.90 126.90 1989 ...... 48,000 2.90 1,392.00 1976 ...... 15,300 0.90 137.70 1990 ...... 51,300 2.90 1,487.70 mains? 1977 ...... 16,500 0.90 148.50 1991 ...... 125,000 2.90 3,625.00 The PRESIDING OFFICER. The Sen- 1978 ...... 17,700 1.00 177.00 1992 ...... 130,200 2.90 3,775.80 1979 ...... 22,900 1.05 240.45 1993 ...... 135,000 2.90 3,915.00 ator has 13 minutes and 40 seconds. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15643 Mr. FRIST. I yield 7 minutes to the miums when we have this peculiar situ- have them giving tax advice! They need Senator from Wyoming. ation, to say the least, where ‘‘Joe Six- all the money they can to figure out The PRESIDING OFFICER. The Sen- Pack’’ is paying 70 percent of the pre- how to get back $135 million. So be ator from Wyoming. mium for somebody who is ‘‘Mr. Mega- ready for it. Dig in. We are going to Mr. SIMPSON. Mr. President, I too bucks.’’ If you want to get into this have a lot of fun. And when it is all listened with great interest to some of business about ‘‘the little guy,’’ let us over, we will have the votes. And when the rather vigorous debate, I believe is get really into this one. This is about it is really completed, the American the phrase. It was rather strained a the little guy, the guy that does not people are going to be very excited and time or two, and almost a little bit have anything, and he or she is going pleased months from now when they hysterical, I thought a time or two to work every day to pay 70 percent of figure it all out as to what we did and also, just hearing snatches of it from the premium for everybody in Medicare what they on the other side of the aisle those on the other side of the aisle. It part B. That is absolutely absurd. did not do. would, indeed, as my good old friend So I am anxious that we do cast some Mr. D’AMATO. Mr. President, will from Wyoming has indicated, make votes in that area. We will smoke them the Senator yield for a question? you weary. And indeed it will. out and see who really is for ‘‘the little The PRESIDING OFFICER. The Sen- What will make you even more weary guy’’. ator’s time has expired. is to read once again, which has been Then, of course, we will see a unique Who yields time? alluded to many times in this debate, and remarkable experience. We will get Mr. FRIST. Mr. President, I give the ‘‘The Status of the Social Security and there in conference. The President of Senator from Wyoming an additional 2 Medicare Programs in the United the United States has said that Medi- minutes. States of America,’’ this wonderful lit- care will not be allowed to go up over Mr. D’AMATO. Mr. President, will tle yellow pamphlet which has been 7.1 percent, and we are saying we will the Senator comment on—how much? I recommended to all Americans for not let it go up over 6.4 percent. think the Senator previously talked many months now. And I wish I could Does anybody in America believe we about, how much does the AARP have put it in more earthly vernacular, and will not get there? There is not a single in investments? I could ordinarily, but this forum does person on the other side of the aisle Mr. SIMPSON. They are a ragged lot. limit one in that particular depend- that does not know the President of They are just a tattered band of raga- ency, so let us just say that Social Se- the United States of America has al- muffins. They have a building down- curity is going to go broke and Medi- ready recommended that Medicare not town here which could be described as care is going to go broke. So if you be allowed to increase over 7.1 percent ‘‘the Taj Mahal,’’ and their lease rental want to have another TV ad of some- and not 10.5. We all know that. I hope there per year is $17 million—$17 mil- body smashing into their oatmeal with the American people cut through the lion a year on a 20-year lease. They the pitch that the Republicans are babble on that one. have $314 million in the bank in T bills. doing something horrid, get a real pic- We all know the President of the They get $106 million a year from Pru- ture of someone who is watching Medi- United States has now said we will dential Life Insurance, taking 3 per- care go broke in the year 2002, where have a 7-year budget instead of a 10- cent of every premium. They get pre- you do not have a ‘‘less’’ benefit in the year budget. It is good that he is call- miums and royalties from Scudder on years out; you have ‘‘no’’ benefit. Try ing it a 7-year budget because his 10- investments, from New York Life, from that one on. year budget thing was just a thing. It the R.V. insurance. They are a big, big, So too even with the hard work we was not a budget. So we will address big business, and they also get $86 mil- have done here, be of stout heart. For that. lion from the U.S.A. to run some of medicare will not go broke in the year Now he has admitted that he went their programs on top of all that. 2002. It will now go broke in the year too far in raising taxes. I saw a fellow Mr. D’AMATO. I thought it was in- 2008. So gird your loins, cheer your- get beat on that once in a campaign— teresting that they have over $300 mil- selves, and know that the draconian two of them, in fact. Now, surely, per- lion in Treasury bills that they have activity we have undertaken here on haps three. invested. our side of the aisle—and we will do it, So we are ready to go. We will go Mr. SIMPSON. That is true. But they and we will do it by ourselves—will over the cliff together. We will not get are just struggling along. And we want ‘‘save’’ it till then. And in a year we a single vote from the other side of the to continue to send our $8 dues to them will tell the American people what we aisle. And between now and next Octo- because my mail is running 16 to 1 did, and they will be very pleased. This ber, next election season, we will de- against the AARP, and most of it is what we are about. scribe to the American people just ex- comes from their own members who I have not heard a single rec- actly what we did, how we saved Medi- say, ‘‘I am still going to pay the 8 ommendation from the other side of care, how we began to get on track bucks, but go hit ‘em a lick.’’ And I am the aisle that would do anything, and again all over the United States, and certainly going to be delighted to do certainly $89 billion is not going to do all over the world with our work, with that. anything because they did not even our debt limit, our deficit, our savings Mr. FRIST. Mr. President, par- talk about part B. How phony can you rate with all of the things that are liamentary inquiry. Time? get to come in and talk about you only critical to us, and be a solvent country. The PRESIDING OFFICER. Five need $89 billion to save Medicare, and But in the next few days, and weeks, minutes remain on the Senator’s side, leave off part B? How really phony can we will be accused of being the party no time remaining on the other side. you get when you want to know, ladies that broke all the ketchup bottles over Mr. FRIST. I would like to yield the and gentleman of America, that part B the heads of every child in the first remaining 5 minutes to the Senator premiums are totally voluntary, they grade, threw all the bed pans out of the from New York. are not part of any Contract With nursing homes, destroyed every pos- The PRESIDING OFFICER. The Sen- America, and they were not part of any sible facility that shelters the home- ator from New York has the floor. contract with senior citizens. In every less, the aged, and the infirm. And be Mr. D’AMATO. Mr. President, I sense, it is an income transfer. It is a ready for that. thank the Senator from Tennessee. He welfare program because right now the And the charge may be led by the has done a magnificent job in attempt- senior citizen who has chosen to accept AARP, which is a group of 33 million ing to combat the demagoguery that this is paying 30 percent of the pre- Americans bound closely together by a comes from nothing but partisan poli- mium, and the people who maintain love of airline discounts, automobile tics. And I have to tell you something. this magnificent building at night discounts, and insurance discounts— If it is not the drumbeat of the AARP, when we are not here are paying 70 per- one of the biggest businesses in Amer- which is bad enough, scaring seniors, cent of the premium. I hope somebody ica who even have a thing called ‘‘tax you cannot make a call into my office will figure that one out. advice’’ for their members. And this is because they have got these poor peo- So I want to watch the votes. Again, a group that has paid the IRS $135 mil- ple absolutely frightened. And I wish to how we are going to handle part B pre- lion in back taxes. Boy, I would love to apologize to the senior citizens for all S 15644 CONGRESSIONAL RECORD — SENATE October 25, 1995 of the fright that they have gone And we come forth with a program. the Medicare trust fund or hospital in- through. I think it is a shame. I think They have had months and months to surance does not go bankrupt; fairly to it is a shame that maybe we have not work with us. Do they offer any con- distribute the costs of Medicare part B, done a better job of getting the mes- structive suggestions? No. They dema- fees for physicians and for medical care sage through. I think it is a shame that gog the issue. They say to people, they across the course of the population; to some people who call themselves cham- are going to cut your benefits. That is provide our seniors with a greater de- pions of the underprivileged have en- not true. They say, they are going to gree of choice than they have at the gaged in demagoguery that has hit new cut your benefits and give tax breaks present time and the selection of the heights. to the wealthy. That is not true. They way in which they receive their health Only in Washington can you spend say, they are going to give you less. care, one which will allow the expenses $110 billion more for a program, which And, indeed, we are increasing that for Medicare to increase in each and we will be doing in Medicare over the program again by $110 billion more. every year during the time during next 7 years, $110 billion more, increas- Somehow we have to do a better job which we are balancing the budget; a ing expenditures at twice the rate of to get the message out. But that does plan, a budget which will also ulti- inflation, and call that a cut. Only in not negate the negativism, the dema- mately include in it genuine welfare Washington can you be taking the av- goguery, the sheer hypocrisy that reform, reform of a system which has erage recipient who gets about $4,800 a comes from the other side. I have to actually made worse the very condi- year in benefits and almost increasing tell you something. I make no apolo- tions it was designed to alleviate in the it by $2,000 so they will be getting gies for branding their brand of legisla- first place, a welfare reform which will $6,700 a year and call that a cut. Only tive acumen in that manner because emphasize work, families, and hope for in Washington can my colleagues on that is what it amounts to—sheer dem- the future; and finally, but not at all the other side demagog it and get up agoguery. incidentally, Madam President, tax re- there with the big voice: Oh, we are Mr. President, I yield the floor. lief for the hard-working American going to cut; we are going to kill, to- The PRESIDING OFFICER. Who families in the middle class, those who tally negate, forget what is going to yields time? There are 25 seconds. are working and contributing to their take place and come forth with not one Mr. DOMENICI. How much time do I society, those who are providing for constructive suggestion as it relates to have to yield? their families and for their future. how you are going to keep Medicare The PRESIDING OFFICER. The Sen- Madam President, in the almost 13 from going bankrupt. ator has 25 seconds. They do not come forth and say any- years during which I have served in Mr. DOMENICI. Just 25 seconds. Does thing. No, just spend it and spend it this body, we have never previously anybody want 25 seconds on our side? and bankrupt us in less than 7 years. had an opportunity to do correctly and Does the majority leader want 25 sec- There will not be any Medicare. Then well any one of these things, much less onds? what happens to the seniors? What do all four of them together. Mr. DOLE. No. Keep counting. they say? They say you are cutting so It is not as though we were present- Mr. DOMENICI. Let me thank Sen- you can give taxes to the wealthy. ing one alternative vision of the future Nonsense. Mr. President, 70 percent of ator BROWN from Colorado for origi- and the opponents were presenting an- any tax advantages are going to go to nally coming to the floor with this sec- other valid, arguable vision of the fu- working families in America; $141 bil- ond-degree amendment and helping us ture. We are presenting a plan, an idea, lion out of the $224 billion that will be out. He did a very good job. And for a course of action, and the other side is 1 coming in cuts go just for the $500 per those who spoke the last 2 ⁄2 hours on defending the status quo. They do not child tax credit— $141 billion. That is our side, I think we have all done a wish to propose an alternative. good job. about 60 percent. The President of the United States The PRESIDING OFFICER. Time has We hear yelling and screaming about has, in vague and general terms, pro- expired. the families, when we do something for posed an alternative budget, a budget Mr. DOMENICI. Now, Mr. President, adoption, when we do something to based not on projections made by our I suggest the absence of a quorum. take care of the marriage penalty, Congressional Budget Office, the office The PRESIDING OFFICER. The when we do something to equalize and the President himself said should be clerk will call the roll. strengthen the family and give people the common ground of all proposals on The assistant legislative clerk pro- IRAs, working families, middle class future spending and tax policies. No, ceeded to call the roll. families, not millionaires, not busi- the President’s proposal is based on his Mr. GORTON. Madam President, I nesses, when we say, by the way, that own figures, taken almost out of thin ask unanimous consent that the order those people who have incomes of air, but, nonetheless, it is a proposal, for the quorum call be rescinded. $150,000 should pay for their own health Madam President, a proposal which The PRESIDING OFFICER (Ms. insurance. A retired person with was rejected by a vote of 0 to 96 in this SNOWE). Without objection, it is so or- $150,000, by gosh, should pay for it, not body earlier this week. The President’s dered. working middle-class families subsidiz- party in this body does not propose to Who yields time to the Senator from ing the wealthy. follow the course of action that the Washington? That is what we do here. We hear White House has outlined. nothing but demagoguery. I cannot be- Mr. ABRAHAM. Madam President, It simply proposes to vote no on all lieve it. I wish to tell you something. the majority leader yields to the Sen- of the changes which we have advanced You do a great disservice to the Amer- ator from Washington such time as he in this reconciliation bill. ican people with that kind of rhetoric. needs off the bill. I think we will demonstrate quite The PRESIDING OFFICER. The Sen- But perhaps most significant, I be- clearly that we are the party that is re- ator may proceed. lieve, in connection with this debate is sponsible. Mr. GORTON. I thank the Senator the estimate, the projection that our Here is the President’s status of So- from Michigan. Congressional Budget Office has made cial Security and Medicare Program, a Madam President, we are at the be- conditioned upon our adopting these summary. This comes out by the Presi- ginning of a debate over the most im- spending reforms and passing a statute dent, his commission. Three of his Cab- portant piece of legislation that this which will lead to a balanced budget inet officials are there. And I read the body has considered during the course even 7 years from now in the year 2002. first page. It says, ‘‘The Federal Hos- of the last decade. We have before us a The Congressional Budget Office has pital Insurance Trust Fund will be able proposal which will lead the United said that if there is in law a realistic to pay benefits for only about 7 years States to its first balanced budget in 26 and effective set of statutes, which it and is severely out of financial balance years. Yes, Madam President, 26 years. and independent economists can say long range.’’ That proposal includes with it a plan with a high degree of confidence will What do our friends on the other side to preserve, to protect, and to balance the budget even after the turn say about correcting that? Nothing. strengthen Medicare to see to it that of the century, then, in its view, the October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15645 economy will grow sufficiently to pro- done in the past, all of the programs it their positions on taxes. There is one vide an additional $170 billion in reve- has passed in the past should and must party, the Republican Party, that is nue as a result of a growth of the econ- be continued. presenting Americans today with mid- omy itself and as a result of lower in- Well, Madam President, I must say dle-class tax cuts; there is another flation and lower interest rates—$170 that the choices are relatively easy party that in the last Congress raised billion, Madam President, for the Gov- choices. With all of the difficulties and taxes a record level of $270 billion. ernment of the United States. But that with all the changes in direction, with I think that the opposition to the Re- figure is not the total of the benefit to all of the groups with genuine or imag- publican tax cuts that are proposed in the people of the United States; it is ined concerns, we have a plan, we have this legislation should not surprise only the share of the Federal Govern- a vision that will lead to a stronger anyone. It is coming from the people ment. The total benefit—roughly four America. Our opponents do not. It is who already raised our taxes by a times that—will approach $1 trillion. time for us to move ahead, to do what record amount, and who would hate to Where will the balance over that $170 we committed ourselves to do during see those taxes go down at all. billion be? It will be in the pockets of the course of last year’s election cam- the American people in the form of paigns—to pass this proposal, to settle The fact of the matter is, Madam higher wages, in the form of lower in- our differences with the House, and President, that taxes represent the terest payments on the homes that then, from a position of strength, to hard work of people in this country they purchase, in the form of better persuade the President to keep the who are out playing by the rules. In my jobs because of greater opportunity commitments that he has made at one State of Michigan they are doing the that the society will create. That is the time or another, which, of course, in- things we need to keep our economy reward—the cautious and conservative cluded all of these elements—a reform strong. They are average men and reward—that this country and its econ- in our Medicare system, a balanced women whose income, at least in my omy and its people can and will receive budget, changing welfare as we know State, for a family is about $32,000. from a balanced budget. That is an ar- it, and a tax cut for middle-income They work hard for those dollars. gument which has been almost totally Americans. Some time ago in the 1950’s and overlooked in this debate over specific Every one of these four elements in 1960’s, those average families in Michi- programs and precise benefits, tax our program is something that the gan like my own sent $1 to Washington breaks, and the like, that simply by en- President of the United States has for every $50 they earned; today that gaging in this action we will provide promised or committed to at some average family in Michigan spends $1 Americans with a brighter and a better time in the past and has since, to a in Washington for every $4 it earns. economic future. greater or lesser degree, repudiated. We In part, I came here to the U.S. Sen- Of course, Madam President, that want to keep our commitments; we ate and ran for this office so that fami- $170 billion of additional resources for want to keep his commitments. The lies who are sending too many of their the Government of the United States only way we can do so is by passing dollars to Washington would get a represents, itself, the overwhelming this reconciliation bill. chance to keep more of what they earn. bulk of the tax relief which is con- Madam President, I suggest the ab- tained in this proposal, and is condi- sence of a quorum. We talk a lot today, and we have seen tioned upon this proposal becoming law The PRESIDING OFFICER. The charts in the Senate over the last few in a way that will in fact balance the clerk will call the roll. months in which we talk about the budget. When you add to that the clo- The legislative clerk proceeded to problems of the so-called middle-class sure of various corporate loopholes, the call the roll. squeeze, the economic pressure on overwhelming majority of the tax re- Mr. ABRAHAM. Madam President, I hard-working average middle-class ductions have as their source either ask unanimous consent that the order families in our country to make ends those loophole closings or the fiscal for the quorum call be rescinded. meet. The PRESIDING OFFICER. Without dividend—the $170 billion dividend we We are often told it is so unfortunate objection, it is so ordered. get—simply because we will have bal- today that it is now necessary often for Mr. ABRAHAM. Madam President, I two people in the household to work in anced the budget. And it is our firm yield myself such time as needed. view that that dividend ought to be re- The PRESIDING OFFICER. Without order to be able to attain the same eco- turned to the American people in the objection, it is so ordered. nomic conditions that used to be avail- form of lower taxes and not retained by Mr. ABRAHAM. We have heard today able to middle-class families with only the Government for its programs. a number of arguments made on each one person out there in the work force. As I said, Madam President, we do side relative to the topic of the tax cut A lot of speculation goes on in the not have an alternate vision; we have provisions in this legislation, and I U.S. Senate as to why it is; why is that an alternate set of criticisms. No, we think it is important for the American middle-class squeeze happening? Why cannot do this. No, we dare not do that. people to understand the clear distinc- is it that two people have to work to No, we cannot reduce that program tion that exists on the two sides of the make ends meet? and, above all, we do not dare reduce aisle over the issue of taxes. A big part of the answer, Madam taxes on the American people. That al- Today, the Republican tax cuts that President, is the taxes have gone up so ternative course of action is one which are part of this legislation have been dramatically during the last 30 to 40 says, essentially, that the status quo is described as tax cuts for wealthy years in this country, and dramatically the best we can do; that whatever we Americans. They have been described in just the last 2 years alone. have done in the past, we ought to con- as unfair. They have been described as tinue to do in the future; that we can unneeded. They have been described in The fact is if the average family in afford to ignore almost completely, but a variety of other ways. Michigan was still sending $1 in Wash- not quite, all of the challenges and I think it is important before we ana- ington for every $50 it earned, the fi- problems of the most rapidly growing lyze those tax cuts and who they really nancial security of those families of our major entitlements—Medicare; benefit, to begin by just stepping back would be a lot greater today. The com- that we can and should continue to say from today and looking at some of the bination of paying higher taxes and that the overwhelming bulk of the cost things that have transpired here in paying higher interest rates on all the of Medicare should be paid by today’s Congress in recent years. I find it in- sorts of things that people in my State working people, even when that means teresting that the people who are on have to pay interest on, whether it is a that hard-working, middle-income this floor attacking the tax cut provi- mortgage for a home or interest on a Americans are paying for more than sions of this legislation are the very car payment or interest with regard to two-thirds, almost three-quarters, of same people who just in the last Con- consumer items or interest on student the health expenses of wealthy, retired gress voted to raise the taxes of work- loans, if those interest rates were Americans—millionaire retired Ameri- ing Americans by $270 billion, the larg- lower, people in my State would be bet- cans. No, we cannot make these re- est tax increase in history. ter off as well. But they are not low. forms. We should not make any Indeed, it is very simple, I think, to One reason they are not low is be- changes. Everything that Congress has differentiate between the parties and cause the Federal Government has not S 15646 CONGRESSIONAL RECORD — SENATE October 25, 1995 balanced its budget in the last quarter when we finally passed the reconcili- fined by some people here in Washing- of a century. As we run up red ink in ation package to the floor, to hear talk ton, just is simply not the case. Of Washington, as the Federal Govern- that over half—over half—of those ben- course it is not the case. ment is forced to borrow money from efits from the tax cut were going to go Madam President, $141 billion, 62 per- lending institutions, from individuals, to the wealthiest families in America. cent of the tax cut, is the family tax from whomever, we have driven up in- That was not the tax cut I had heard credit, $500 per child, letting families terest rates. about. It was not the way I had seen it keep $500 per child to spend, to try to The middle-class families find them- described. I had even read the Washing- make ends meet to provide those chil- selves in two separate ways dramati- ton Post in which the Washington Post dren with a better way of life. cally affected by the policies here in described the tax cut as ‘‘family friend- Another important part of our tax Washington. On the one hand, it does ly.’’ credit in the family tax relief section is not get to keep as many dollars as it I went out and asked for statistics an adoption credit. That accounts for earns because it has to send more dol- and I was presented with the Joint almost $2 billion of this tax cut. It is a lars to Washington in taxes; and then Committee on Taxation’s specific re- nonrefundable tax credit allowing for with those fewer dollars that remain it sults of their analysis. Here is what I the exclusion of up to $5,000 in adoption has to pay more in the way of interest found: In the first year of this tax cut, costs. The credit phases out. This is because Government policies have 90 percent of the tax cut goes to those important. It phases out between the helped to drive up interest rates, be- making under $100,000 in the first year; taxable income levels of $60,000 and cause we cannot live here in Washing- 77 percent of the proposal’s tax cuts go $100,000 for both individuals and cou- ton within our means. to those making under $75,000 in that ples. In other words, not $1 of the adop- That is why in this legislation we are first year. Less than 1 percent of the tion credit, the $2 billion of tax cuts trying to correct the two problems proposal’s tax cuts will go to those that form the basis for that tax relief, that afflict those middle-class families. making over $200,000 in the first year. will go to anybody making more than On the one hand, we are trying to Over four-fifths, 84 percent of the pro- $100,000. Indeed, again, it is aimed at give middle-class families the kind of posal’s tax cuts go to those making helping people in this country, middle- Federal Government fiscal responsibil- under $100,000 in the first 5 years. And income categories, to be able to expe- ity they have to exercise in their own 70 percent of the proposal’s tax cuts go dite the adoption of children, to pro- homes. What we are trying to do is to to those making under $75,000 in those vide children with loving homes and a bring about ultimately at the end of 7 first 5 years. Less than 6 percent of the few of the dollars necessary to make it years the balanced budget that has proposal’s tax cuts will go to those possible for those adoptions to be car- eluded us here in Washington for a making over $200,000 in the first 5 ried out in a way that provides chil- quarter of a century. years. dren with a better chance for their fu- As we bring down the deficit and as That is a completely different set of ture. we maintain a balanced budget, and as statistics than the ones presented to us The next part of it, another family- we maintain a balanced budget after at the Budget Committee. It is not the related tax section, is $12.3 billion to the year 2002, the impact of that will case that over half of the tax cuts are try to provide relief from the marriage be a dramatic effect on middle-class going to people making over $100,000, penalty that we impose under our Tax families, because as we bring down quite the contrary. Code. Maybe some people who make the deficit, as we recognize in our own This is a family friendly tax cut. It is more than $100,000 will benefit from the CBO reports here, interest rates that designed to address the second problem elimination of the marriage penalty, the Federal Government has to pay I earlier mentioned, the problem that but I hardly think anybody wants to will go down. middle-class families have had, the come to the floor of the U.S. Senate That will save money for the Federal squeeze that has been put upon them and argue we should not eliminate this Government. It also will mean that in- because they have had to send too marriage penalty. It makes no sense terest rates in the private sector go many dollars to Washington. for us to have ever done it in the first down. It means the interest that people I did not want to just leave it at the place. who are watching today and hearing all Joint Tax Committee’s numbers. Now, Another part of our family tax relief these frightening stories, as they go we had competing sets of statistics so I is student loan interest deduction. out into the housing market, as they thought the next and most important That is another $1 billion. Once again, go out to buy a car for the family, as thing I could do would be to look at the it is limited in scope to people who they go out to make other purchases specific components of the tax cut to have adjusted gross incomes of between that are affected by interest rates, see which of the two versions was accu- $40,000 and $55,000 for singles and be- they will find their interest rates, just rate. What I discovered was that, of tween $60,000 and $75,000 for married like the Federal Government interest course, the Joint Tax Committee’s ver- couples. After that, this deduction is rates that they have to pay, will be sion, their statistics, are right on the not available. Again, a deduction coming down, which will make items mark. aimed at helping people of moderate more affordable. Let us tell the American people some means to try to better and more easily That is one reason we are trying to of the things that comprise this tax finance college educations. bring this budget into balance. At the bill. On and on I went through this tax same time, we are trying to address the First, it provides a $500 per child tax program. What I discovered was that in other problem that affects average credit for American families. That con- almost every section, the entire focus American families, the problem of stitutes $141 billion of the $225 billion has been to try to provide middle-class sending too many dollars to Washing- in tax relief under this bill, over 62 per- families with tax relief, to try to let ton. That, of course, leads us to the cent. people keep more of what they earned, issue of our tax cut. Some say for some of those children, to try to allow families in this country There have been many, many descrip- they are part of families that make to offset some of the hardships that tions of the tax cut. The tax cut was lots of money. That may be true. But, come about when the Federal Govern- being described before it was ever even of course, this tax bill has been limited ment consumes too many of their dol- talked about in the Senate, before it in its scope. Indeed, the $500 per child lars. was addressed, before anybody put a tax credit begins to be phased out, in That does not mean that every part pen to paper to try to draft a tax cut. the case of families with a single head of the bill primarily benefits people of It was always described the same way of household at $75,000, in the case of a middle-income backgrounds. Yes, there it is being described today, as a tax cut couple at $110,000. So, unless people be- are sections aimed at trying to create principally desired by Republicans to tween $100,000 and $110,000 have a vast- growth in our economy, that dispropor- be given to the wealthiest of Ameri- ly disproportionate number of children, tionately benefit people and, to some cans. the argument that many of the tax extent corporations, people of greater I was astonished when the other day breaks from the family tax credit are means and corporations. Interestingly, in our Budget Committee meeting going to go to wealthy people, as de- though, a very substantial percentage October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15647 of the benefits of those pro growth tax gitimate Government purposes, and the may not have foreseen a Republican reductions and tax cuts go to the bene- expenditure for those purposes and not victory the size that it was, we may fit of average working families in this one more penny should come from the not have foreseen the people’s response country because, as we unleash the pockets of the taxpayers. When we give to the program, but that program benefits of some of these growth-ori- this tax cut this year, we are just giv- called for a balanced budget. ented tax cuts, what will it produce? It ing people back money that was ruth- We took control of both Houses of will produce more jobs, better paying lessly taken from them in the last Con- Congress in January for the first time jobs. As companies expand and grow, gress by the President’s budget. in 40 years. In a sense, when we took we will hire more people, we will pro- We give it back in the way of helping over in January we transformed our vide more opportunities for Americans. middle-class working families who pay contract into New Year’s resolutions Remember this, too, Madam Presi- the bulk of the taxes in this country. with the American people. We said that dent, a great number of the people who We do it in a way that says that the we are going to put this bloated Gov- benefit from capital gains tax cuts are foundation of our society is families ernment on a diet. Then for the last 10 families who are selling the family and that we want to encourage the months, we have been following a re- home, who are selling other capital as- family as an institution. That is why gime to achieve our resolution. sets, who own or are part of pension three-quarters of the tax cuts in this What happens in the Senate on programs that invest in stocks and cor- bill go to families, primarily through Wednesday, Thursday, and Friday of porations and ultimately realize cap- the $500 per child tax credit. That is a this week, as far as delivering upon one ital gains. tax credit that is off the bottom line of of the major promises of the last cam- Moreover—and I think it is impor- taxes otherwise owed to the Federal paign—to balance the budget, to reduce tant to note—this bill does not have Treasury. taxes, and to reduce taxes that are paid simply an up side for those in these Whereas, the Senator from Michigan for by cutting spending—that is all of wealthy categories or for corporations, gave a very good explanation of what is that 10 months of work. Everything because we are also closing a substan- in the tax provision, I want to speak that the people have been expecting tial number of tax loopholes. In fact, about our efforts to balance the budg- since they voted 12 months ago for a the closing of loopholes largely offsets et, our efforts to reduce the role of new Congress is coming to an end on the tax advantages that are provided to Government in our economy by reduc- Wednesday, Thursday, and Friday. corporations and upper-income individ- ing the size of the budget, by reducing What decides whether or not we are uals under this bill. the percentage of the budget to the successful is if we have 50 votes to pass In short, we are paying for most of gross national product over time, this reconciliation bill. We Republicans the benefits derived by those individ- meaning a lessening of the amount of then have been following a regime to uals by the closing of these loopholes. money that is run through the ineffi- achieve our resolution that we started In short, once again, this tax cut bill is cient operation of the Federal budget, on last January. designed to aid families in the middle because we believe that the free mar- The other side of the aisle, meaning class above all other families in this ket, the segment of the economy out my Democratic friends, have been country. there that comes from the private sec- carping with neither shame nor credi- For those reasons, I intend to come tor, the nonpublic part of our budget, bility. They have no credible alter- to the floor again as may be necessary is the most efficient distributor of natives. Oh, the President said in June, to keep reminding our colleagues ex- goods and services, where the jobs are after 6 months of finally waking up to actly who the beneficiaries of this tax created, where we have efficiency with- what the people decided in the last cut are. It is simply, as you analyze the in our economy. election, that he was for a balanced data as to where the tax cuts go and Getting to a balanced budget sets a budget, not in 7 years as the Repub- how specifically the tax cuts have been very, very good starting point for the licans planned but in 10 years. But developed, you realize once again that reduction of interest rates. And it is when the Congressional Budget Office, the claims that our tax cut is designed projected that interest rates will go the nonpartisan Congressional Budget to help so-called wealthy people simply down 1.5 to 2 percent if we pass this Office, looks at the President’s pro- miss the point. It is a tax bill designed year a budget that will balance by the gram to balance a budget in 10 years, to help middle-income families to ad- year 2002. And we are gradually and re- they do not find a budget balance in 10 dress a problem that has been growing sponsibly reducing expenditures to get years. They still find $200 billion defi- in this country for the last 40 years, to that point that interest rates will go cits as far as you can see into the fu- the problem of the Federal Government down. In fact, we started to reduce ture. getting too big, consuming too many Government expenditures with a re- That is no different than the Presi- resources, making it much more dif- scissions bill of $14 billion for fiscal dent’s program of 1993, which he claims ficult for average families to make year 1995, just completed. has reduced deficits more than in any ends meet. By balancing the budget By reducing interest rates, we are other 3-year period than any other and thereby bringing down interest setting the stage, then, for growing the President ever had. But the point is the rates, by giving families tax cuts, we economy, for creating jobs and expand- President’s program of 1993 still saw can try to help alleviate the middle ing, as we must be. There is so much of beyond the year 1997 $200 billion defi- class squeeze. That is what we are try- the job creation which comes from the cits as far as the eye can see. Two ing to accomplish in no small measure private sector and the small business years later, in June 1995, the President with this legislation. sector of the private sector that with says he is for a balanced budget by At this time, I yield the floor. interest rates going down, it is really 2005. But when you score it the same Mr. GRASSLEY addressed the Chair. going to encourage small businesses to way we score our budgets, it is still the The PRESIDING OFFICER. Who create more jobs. They are the engine. same old story—unbalanced budgets as yields time to the Senator from Iowa? Small business is the engine that far as you can see into the future. Mr. ABRAHAM. I yield to the Sen- drives our economy. Maybe I should not say the other side ator from Iowa such time as he may Getting to this point has been about has no alternative, because the Presi- need off the bill. a 10-month process. Remember, just 12 dent did say the budget ought to be The PRESIDING OFFICER. The Sen- months ago there was a Republican balanced. He did not send up a program ator from Iowa. program called the contract that had to do it. He just said that is something Mr. GRASSLEY. Madam President, 10 features in it that was in a sense a that he is for. But never before was he first of all, I thank the Senator from national program. When normally we for a balanced budget. Then later on he Michigan for an outstanding review of have 435 different races for Congress said, well, maybe it can be done in 9 all of the various profamily, progrowth and campaigns for Congress, the Re- years. Then I believe it was just last tax measures that are in this bill. This publican Party had one national cam- week, or near to now, he said he could tax bill is a memorial to the propo- paign. And the centerpiece of that na- agree with the Republicans, that it sition that we believe taxpayers’ tional campaign was to deliver a bal- ought to be done in 7 years and can be money comes to the Treasury for le- anced budget. Twelve months ago we done in 7 years. S 15648 CONGRESSIONAL RECORD — SENATE October 25, 1995 But for the most part, all we have budget provides for the future; and by 2002. We show our faith in the Amer- heard from the opposition is naysayers. so doing gives our children and our ican people by giving back to them $224 This diet that we Republicans want to grandchildren a future, the sort of fu- billion of their hard-earned tax dollars put the Federal bureaucracy on, the ture that we have a responsibility to for them to decide how to spend for other side has been saying no to, leave them. It is not a responsibility their future because we believe it will naysayers. It is kind of like those little that we judge our own. It is a respon- be more efficiently spent by them than voices that you hear in your head when sibility that we have inherited from by Government. each of us say that we ought to go on past generations of Americans who Finally, this budget ensures that the a diet, or we are going to go on a diet. have given my generation and younger future of our seniors and the baby That little voice in our head says, ‘‘I generations a great country to live in, boomers who will soon be retiring is se- cannot do this. I cannot do this.’’ That a better future than our ancestors had cure because we preserve Medicare in little voice says, ‘‘Let us wait until and the generation that preceded it. this budget and we ensure that it does manana.’’ Or it says, ‘‘I do not feel like That would not be possible, Madam not go bankrupt. Republicans have of- doing anything today, do it tomorrow. President, without providing a bal- fered a comprehensive vision of the fu- Maybe tomorrow I will start, I will anced budget and the secure future ture. We have kept the promise of the start my diet.’’ Then you hear those that it allows. In effect, it is a nec- last election. If we pass this resolution little voices with millions of excuses essary forerunner to a guaranteed fu- in the next 2 days, we have kept our why you cannot go on a diet. ture as we know it and better for our New Year’s resolution to the voters to The Republican program is putting younger generations. put Government on a diet. We have not the Federal bureaucracy and Federal This budget provides a positive vision listened to those little voices in the programs on a diet. It is being for our country’s future, a future in minds who say, ‘‘I can’t go on this diet. downsized. That is the essence of our which we have a balanced budget that I can’t do this today. I will do it tomor- reconciliation bill before us. The other will help increase productivity, lower row.’’ We have listened to the loud side, without shame or credibility, are interest rates, create more jobs and, voice of the electorate. naysayers to this process. most importantly, lessen the tax bur- Now, incredibly, I have heard the Madam President, sometimes to den we are placing on today’s children. President claim that the Republican achieve the best results we ought to Let us be clear. We talk about fiscal balanced budget would mortgage our tune out those little voices, not listen policy. We talk about doing economic future—would mortgage our future. to those little voices in our head who good. We talk about a secure future in Can you imagine the nerve of the say, ‘‘I cannot do this,’’ or, ‘‘I will do it materialistic terms. But this is not President saying the Republican bal- tomorrow,’’ or any of those other mil- just a debate about material better- anced budget will mortgage our future lion excuses that we hear. Tune out ment. It is not a debate about abstract when we have been mortgaging our fu- those little voices. fiscal policy or economic issues. This is ture for the last 30 years because it was So that is why I speak to my col- more a moral issue than anything else. 1969—not quite 30 years, 26 years—since leagues, particularly my colleagues on The Republican Party simply be- we have had a balanced budget. He did the other side of the aisle, because this lieves it is not right for our generation not say that out of ignorance because is a very important debate about turn- to live high on the hog and to pass the the President is a very intelligent per- ing things around and no longer busi- bills on to the next generation of son. I do not know really why he said ness as usual when it comes to the fis- young people. We are saying that fi- it. I would like to know why. It seems cal policy of the Federal Government nally Congress realizes that is just not to me that it could be part of a pro- because business as usual has been for right. That is what we said in the last gram to muddy the waters. 30 years, do not be concerned about a election. We did not know when we said It is clear to the people what is going balanced budget. Or maybe I can say it that people would respond positively on up here on the Hill because this the last 10 years, be concerned about a to it. But the voters did respond posi- budget, this reconciliation bill before balanced budget, but not really doing tively to it by the biggest shakeup in us, does not mortgage the future. The anything about it. That is business as Congress since the 1930 election. That failed policies of the big spenders have usual. 1930 election turned things around po- already done that. We Republicans, The people in the last election sent litically so much in Congress and with this balanced budget resolution, us a clear signal that they no longer Washington, DC, that there has not are successfully ridding ourselves of want business as usual in Washington. been a change from that direction until the deficit, the so-called mortgage that And the reconciliation bill up for de- now. is on our future, so that we can have a bate on Wednesday, Thursday, and Fri- Now, whether there was a whole new bright future for our young people. day for 20 hours of debate in this body, political environment ushered in by Unfortunately, the Democratic side and then hence to final passage, is our the election in 1994, I do not know for offers nothing for the future. It seems statement of no longer business as sure. I suppose the 1996 and 1998 elec- the White House is happy to have a usual, that we are going to deliver on tions will answer that question for me. growing deficit that continues to mort- the promises of the last election. For But I do know this, that we got the gage our future. The White House, by once, Congress is going to perform ac- message of the last election. We are re- not cooperating with Congress to bal- cording to the rhetoric of the last cam- sponding to it. And we are passing a ance the budget, is sending a clear mes- paign. Our performance will be com- budget that is balanced based upon the sage that they want in essence to take mensurate with what we said in the fact that it is immoral for us to go in out a second mortgage to fund in- last election. And the essence of that is the hole, to deficit spend and not care creased spending instead of doing the our Government programs and our bu- who pays the bill while we live good responsible thing of balancing the reaucracy must go on a diet. and live well. budget. And so during this debate then, just While we are worried about what the The White House policy will have our tune out those little voices that say, ‘‘I 1996 election or the 1998 election might children and grandchildren continuing can’t do this. I can’t go on a diet.’’ Be- mean for securing a long-term political to pay not only the first mortgage but cause we will. We must. And we sense change in Washington, DC, we have the the second mortgage. the responsibility not only because it responsibility to do what the voters I guess, Mr. President, the essence is philosophically comports with what we asked us to do in the last election. So that the other side of the aisle has no feel Government must do, but it is also this budget states that we believe New Year’s resolution. They can only a behavioral change that comes from Americans know how to spend their offer working families more of the the large voice of the electorate that hard-earned dollars better than bureau- same. They do not even want to sit spoke in the last election. crats as we decrease the size of Govern- down at the table with us to negotiate. This very important debate can be ment as a proportion of the gross na- Right after our summer recess in Au- summed up in just one word. That one tional product, as we reduce the num- gust, we returned after Labor Day, the word is six letters, future, f-u-t-u-r-e. ber of Government employees, as we re- President was invited to the Hill—not This budget plans for the future; this duce and eliminate deficits by the year to the Hill, wherever the President October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15649 wants to sit down with Republican The PRESIDING OFFICER. The Sen- spending cut you say is the source of leadership to talk compromise, work ator from Arkansas is recognized. the tax cut. It does not matter. out differences. The President then Mr. BUMPERS. Mr. President, we What matters is that we are giving would have to put his wares on the have now been on this bill 6 hours—let away $220 billion to $240 billion in taxes table for the whole world to see. Evi- us see, I believe a little over 6 hours, 6 that ought to go on the deficit or, at a dently, he was not ready to do that. No hours, 30 minutes, and we have yet to minimum, be placed back in those pro- response. vote. We only have 20 hours on the en- grams like school lunches and Head October 1 comes, the end of the fiscal tire bill. And my question is this: This Start and student loans and things year. We have to move forward. We bill, which everybody on the other side that give people at the bottom of the moved the time ahead to November the of the aisle is so proud of, why do you ladder a fighting chance to become 13th, but we could not wait any longer not want to let us offer the amend- somebody. to fulfill the constitutional responsibil- ments and let you defend it? I got that chance when I went to one ities that the Congress has to provide a That is all we want. If you are so of the best law schools in the country budget; and implicit in our Constitu- proud of that tax cut, let us offer an on the GI bill, and I have been trying tion, a balanced budget, because we amendment to make that tax cut re- to pay it back ever since by reaching have had more balanced budgets in fundable for the people who really need from the top of the ladder down to peo- peacetime than we have deficits it. You call it a middle-class tax cut. ple on the bottom rung and bringing throughout the history of our country. That does not even stand the giggle them up, because I think that makes Just last Thursday, the Speaker of test. A family with four children, mak- me better and it makes our country the House and the Senate majority ing $20,000 a year, probably pays no in- stronger. leader offered the President to sit down come tax. And they do not get the $500 I consider this 2,000-page monstrosity and talk. No response. So we move for- per child tax credit. They get nothing. of a bill, that must weigh at least 10 ward. I think this can be resolved. But The $500 credit is only available if you pounds, I consider it one of the worst it cannot be resolved by the other side pay $500 in income tax. disasters to befall this institution having no program and at the same Contrast that situation with this: A called Congress. You think of it—pe- time carping and criticizing what the man and wife with one child, and they nalizing the elderly, penalizing poor majority is doing. More of these same pay, we will say, $500 in taxes. Under children, penalizing the most vulner- policies are going to bankrupt Medi- the Republican budget, they will get able among us while we give away 76 care. that $500 back through the child tax percent of the capital gains tax cut to This bill before us solves that prob- credit. But if you happen to have a the wealthiest people in America. lem, as the trustees, the Democrat house full of kids, your dependent ex- Meanwhile, we continue to sell lands trustees, asked us to do on April 2. Not emptions will probably result in you for $100 an acre when the mineral the President’s proposal, it is going to paying no income taxes, so you will not rights are worth thousands of dollars provide for more out-of-control spend- be eligible for the same credit wealthi- an acre. So the StillWater Mining Co. ing, with $200 billion deficits that will er families get. That is a middle-class in Montana will pay $200,000 for a plot destroy our children’s futures because tax cut? We all know now that 49.5 per- of land worth $38 billion in platinum that is what the President’s 10-year cent of the people in this country make and palladium. We are giving away tax- balanced budget program—even though less than $30,000 a year. What do they payers’ property while we penalize the he did not give us specifics—would pro- get out of this middle-class tax cut? most vulnerable among us. vide. That is not my determination. They get a tax increase, 50 percent of Thank you, Mr. President. That is the determination of the non- the people in this country are going to partisan Congressional Budget Office. wind up paying more. The PRESIDING OFFICER. The Sen- And you know in this proposal it is Now, I will never forget in 1981 when ator from Alabama is recognized for 5 going to still continue to give us more Ronald Reagan came to town on the minutes. taxes, more taxes, and more taxes. And promise he was going to balance the Mr. HEFLIN. Mr. President, the Sen- if there are not more taxes this day, budget, and I was hot for him. I am one ate will soon be faced with an up-or- because the President may not be pro- of three Senators in the U.S. Senate— down vote on proposals of mammoth posing to change tax policy—he did it I want to cleanse my skirts—who voted proportions. These proposals will di- with the biggest tax increase in the for every one of President Reagan’s rectly affect virtually every segment of history of the country in 1993—for the spending cuts, but I voted against that the government and every citizen of young people of America it is going to massive tax cut. If everybody had this country. For some, the con- mean into the next century tax in- voted the way FRITZ HOLLINGS, BILL sequences will be positive. For the vast creases of 80-some percent because of BRADLEY and DALE BUMPERS voted, we majority, however, the consequences irresponsible spending today. would have had a balanced budget. But, will be bad—in some cases, like for the So I think it is clear which New no, we had to give the store away. Gen- elderly, students, and working class, Year’s resolution the American people eral Electric made—— the effects will be economically dev- want us to keep. It is the one of prom- Mr. INHOFE. Will the Senator yield? astating. ising a future for our young people, a Mr. BUMPERS. No. While this package as written will future for our country, a future for the General Electric made $3.7 billion in significantly reduce the deficit, at world, as this engine of the United 1983 and got a $700 million tax cut. least in the short term, there is consid- States, this economic engine of the That was all $3 trillion ago, $3 trillion erable doubt as to whether or not it United States, drives the rest of the from the promise of a balanced budget. will ultimately balance the budget by world. In only 8 years, our $1 trillion debt 2002. Some of the savings are artificial We have that opportunity to fulfill went to $3 trillion. You talk about or even lose money despite producing that promise for our future generations snake oil. CBO-scored savings. As we all know, by adopting this resolution and to So what are we doing here? Are we future congressional action is likely to avoid being influenced by the carping going to pass an amendment that says reduce other savings currently as- from the other side of the aisle and the tax cut cannot come out of the So- sumed by this plan. A major portion of from the White House that has no pro- cial Security trust fund? If you want to the projected savings in this plan come gram to reach the goals that we do. balance the budget, forget the tax cut. from Medicare and Medicaid. Welfare I yield the floor. CBO says that without the tax cut we reform, nutrition programs, the earned Mr. EXON addressed the Chair. can balance the budget in the year 2001, income tax credit, farm programs, and The PRESIDING OFFICER (Mr. a year earlier than under this budget. student loans are other areas facing KYL). The Senator from Nebraska. How is the tax cut being paid for? Out enormous cuts. Mr. EXON. Mr. President, I am of Medicare, out of school lunches, out I am strongly in favor of deficit re- pleased to yield 5 minutes to the Sen- of Social Security, out of student duction and, ultimately, the elimi- ator from Arkansas and, following that loans, out of the earned income tax nation of the national debt. I have long 5 minutes, to the Senator from Ala- credit, out of agricultural programs. It supported a balanced budget amend- bama from our time. does not make any difference which ment to the Constitution. I supported S 15650 CONGRESSIONAL RECORD — SENATE October 25, 1995 the 1993 reconciliation bill which has patient hospital services, diagnostic assistance over the next 7 years. Such already led to significant reductions in tests, and other important services to a drastic cut will have a profound ef- our annual deficits. But as with any our senior citizens. fect on the ability of health care pro- omnibus legislation of this type, there In addition to reduction in services, viders to meet the ever-increasing is a right and wrong way to pursue the the following immediate burdens would needs of the community and will also same goal. Themes and patterns be placed on our senior citizens: For increase costs for those with private emerge. Priorities and process do mat- Fiscal Year 1996, the monthly premium insurance plans. On the other hand, the ter, and it appears that on balance, the would rise to $54. Participants in the right kinds of decisions could set the priorities in the package before us are part B program would be required to course for restructuring these pro- seriously misguided. pay the first $150 of expenses out-of- grams in ways that will enable provid- What our colleagues on the other side pocket rather than the current $100 de- ers to deliver quality care more effi- are attempting is to place a vastly dis- ductible. This would rise by $10 annu- ciently. proportionate share of the pain which ally through the year 2002. All these in These extreme cuts to Medicare also will inevitable result from cuts of this combination with the proposal to raise threaten health care for millions of magnitude on those least able to ab- the eligibility age to 67 leads me to be- people of all ages living in rural Amer- sorb it—working people, the elderly, lieve that seniors are being singled out ica. Medicare spending in rural com- students. There is a bitter flavor that to bear the brunt of budget cuts. munities will be cut by $57.9 billion this package produces, and you do not We all realize that the Medicare Pro- over the next 7 years—a 21-percent re- have to bite off and chew on its details gram cannot continue functioning in- duction by 2002. Since rural hospitals to taste its bitterness. Its basic ingre- definitely as it is now, but the cure is rely on Medicare for a significant pro- dients were listed in the blue-print the certainly not the Republican plan. portion of their revenue, they will be Senate passed several months ago, but Not only do these proposals cut Medi- particularly hard hit. Some will be as they have been mixed together and care, but Medicaid is being reduced by forced to close altogether. Hospitals in as they have simmered in the context $187 billion over the next 7 years. For rural areas are few and far between. A of this reconciliation package, they the past 30 years, the Medicaid Pro- hospital closing affects all rural resi- have become dramatically more bitter. gram has been America’s health and dents in the vicinity, not just seniors The theme throughout is to benefit long-term care safety net. The Repub- on Medicare. Under the GOP plan, those who have already benefitted lican proposal is to repeal Medicaid, these Americans will be forced to drive greatly in this society, and to punish slash its Federal funding over the next further to the nearest hospital, putting those who are simply trying to get by 7 years by 20 percent, and to turn re- lives at risk. or to realize a share of the American maining Federal funds over to the As an alternative to closing, rural dream. States in the form of a block grant. Ac- hospitals could turn to local residents I have several major concerns sur- cording to the American Health Care to pay more for services or to pay high- rounding this legislation, but the most Association, in 1993, 43 percent of the er taxes to subsidize their hospitals. disturbing are the cuts in Medicare and cost of Medicaid payments was born by So, taxpayers in rural America will be Medicaid. The plan is to cut Medicare the States. Under the block grant pro- forced to pay more in order to protect growth by $270 billion over 7 years. In posal, by 2002, the state share would be access to health care as well as the addition to slowing the growth of 56 percent—a 13-percent increase in quality of their services. Seniors in spending from 10 percent a year to just 7 short years. In a State like Ala- rural areas already have a limited about 6.4 percent, it mandates a major bama, which is habitually faced with choice for doctors and this plan will re- restructuring of the program to sup- budget proration, the effects of such sult in fewer doctors accepting Medi- posedly give Medicare enrollees a wide additional burdens will be huge and care patients or doctors charging sen- range of options to join private health devastating. iors more. plans. I am concerned that instead of The National Association of Counties options, however, senior citizens will strongly opposes the block granting of Also with regard to rural America instead be faced with fewer alter- Medicaid and the loss of a Federal and agriculture, there are several pro- natives, and will be forced into certain guarantee to benefits. In a letter sent visions which have potential hidden plans because they have no choice. to my office yesterday, its executive costs. The savings from the Wetlands It is my understanding that $89 bil- director, Larry E. Naake, wrote, Reserve Program, for example, do not lion in savings would rescue the Medi- We do not believe that states will find continue in the years beyond 2002. CBO care Program, but we are considering a enough budgetary efficiencies without reduc- anticipates that in those years, the bill which cuts it by $270 billion. The ing eligibility . . . Individuals will continue program would actually be more expen- to have health needs, regardless of the payor sive under this legislation than under proposed $270 billion of savings is vast- source. That is why we have always sup- ly more than is needed to preserve the current law. In addition, the removal ported the intergovernmental nature of the of the requirement to purchase crop in- solvency of the program. Therefore, we Medicaid program and the assurance that need honest answers as to why we are there is some minimum level of coverage surance will expose additional farmers attempting to write into law a $270 bil- guaranteed to eligible individuals, regardless to losses from poor weather, floods, and lion reduction. of the state in which they reside. other natural disasters. In the past, The direction we are going will ulti- The Democratic plan would reform Congress has responded to such events mately cause senior citizens to be Medicaid, not repeal it. It would re- with supplemental appropriations for charged more for health care while re- strain the rate of growth in Federal disaster relief. The removal of the crop ceiving less in Medicare, all the while Medicaid spending in a responsible insurance requirement provides budget financing a tax break for those in the manner, not slash spending so much savings for reconciliation but under- upper income brackets. that huge cutbacks in eligibility, bene- mines a key element of last year’s crop A great portion of the savings in fits, and payments to providers are in- insurance reforms, which were in- Medicare would result by raising the evitable. It would maintain a Federal tended to end the temptation for Con- part B premium. The premiums that fiscal partnership with the States for gress to pass costly disaster assistance our senior citizens pay would rise from health and long-term care, not break bills. If our past experience is any the $46.10 per month to more than $90 the commitment to assist States and guide, the end result will be even high- by the Year 2002. localities in paying for care to vulner- er Federal spending. I have reservations and misgivings able Americans. I am also deeply dismayed over the with regard to any Medicare reform These proposed cuts in Medicare and $10.8 billion cuts in student loans, most that threatens the access to, and qual- Medicaid funding would also have a of which will come out of students’ and ity of, health care for senior citizens. devastating impact on hospitals and parents’ pockets through higher inter- Specifically, this bill would cut inpa- health care systems since providers est payments. Each school would be re- tient hospital service, home health will take the brunt of $270 billion Medi- quired to pay a 0.85 percent fee on the care services, extended care services, care reductions. Alabama would get amount of Federal loans made for stu- hospice care, physicians services, out- $1.45 billion less in Federal Medicaid dents attending the school. This would October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15651 undoubtedly be passed on to the stu- income taxpayers are receiving the the total revenues for marginal rates dents in some form. It would cap the benefits of a tax cut.’’ in 1980 amounted to $244 billion; in 1990, direct lending program at 20 percent of As I stated before, this reconciliation from the marginal rates that had been student loan volume. Rather than sav- package’s priorities are misplaced, its decreased, the total tax amounted to ing money, this change would only effects unfair, and its assumptions du- $466 billion. In other words, we almost produce paper savings as a result of bious. In its current form, it will and doubled the revenue during that 10- new scoring rules adopted by the ma- should be vetoed. We should and will be year period, and what happened during jority. forced to start over after the veto. It that period, as was pointed out by the Mr. President, in this Nation, we would be to our benefit and the benefit Senator from Arkansas, is that we had have prided ourselves on the quality of the American people to return this the most significant tax reductions and accessibility of our system of high- legislative bitter pill back to its con- during that period of time. In other er education. Today, through student tainer now and come up with a plan words, we increased revenue by reduc- loans, Pell grants, work-study, and that is equitable and that gets the job ing taxes, and that has gotten lost in other programs, virtually every person done the right way. this debate somehow. who wants to attend college is able to Mr. EXON addressed the Chair. Then another observation I had after do so. We have made the correct deci- The PRESIDING OFFICER. The Sen- listening to the Senator from Arkansas sion that economic circumstances ator from Nebraska. was that those same individuals who should not prevent a bright, young Mr. EXON. Mr. President, I want to are fighting the tax reduction that we mind from being able to obtain a col- take a moment from our time, if I are proposing in this resolution are the lege degree if that is what they want to might, to thank both my friend from same ones that supported the largest pursue. Why on Earth would we want Alabama and my friend from Arkansas, tax increase in the history of America, to retreat from that commitment by who preceded the Senator from Ala- as it was characterized by not a con- making higher education less acces- bama, for excellent remarks. servative Republican, JIM INHOFE, but sible to millions of academically quali- The Senator from Alabama is the by the chairman of the Senate Finance fied students? The bottom line is that former chief justice of that State. I Committee in 1993: The Clinton tax in- to the vast majority of families who have served with the distinguished crease was the largest single tax in- depend on student loans to pay tuition, Senator from Arkansas since 1971 when crease in the history of America or the slashing student loans will mean the we both were elected and began service history of public finance. difference between enrolling their chil- to our States as Governors. They are dren in college and not sending them. Who are the ones who voted for that? extremely talented and dedicated peo- Those individuals who voted for that Finally, Mr. President, I want to dis- ple. I want to thank them for their ex- cuss my concerns over the changes to tax increase were the big spenders as cellent comments to try and recognize ranked by the National Taxpayers the earned income tax credit, which the serious problems with this budget former President Reagan once de- Union, National Tax Limitation Com- bill that I addressed at some length at mittee and all of the other organiza- scribed this way: ‘‘The EITC is the best the beginning of the morning, about anti-poverty, the best pro-family, the tions that ranked big spenders in Con- 10:30 this morning. gress. best job-creation measure to come out To all I want to say that while I am of Congress.’’ Republicans in the Sen- disappointed that we have not had a So you had the big spenders who were ate as well have supported the EITC for single vote yet, I advise all that some for a tax increase at that time. All we many years. progress is being made, and I suspect are trying to do is say, ‘‘Mr. President, The plan before us dramatically in- that in the possibly not too distant fu- you made a mistake back in 1993 by creases taxes on the working poor by ture we may have some kind of an an- passing a big tax increase. We want to scaling back the EITC that so many nouncement by the majority leader and repeal some of that tax increase.’’ Republicans have strongly supported in the minority leader, or the chairman of So the same individuals that are op- the past. The plan increases taxes by the Budget Committee, Senator DO- posing our reduction in taxes now, to $43 billion over the next 7 years. This MENICI, who is on the floor, and we can give some of the taxes back to individ- means an immediate $281 average tax maybe move more progressively ahead uals in America, are the ones who were increase on 17 million low-income and stop the talking and start the vot- supporting a major tax increase. American taxpayers. By the year 2005, ing. The last thing I want to mention is 21 percent of all families currently eli- I thank the Chair. that those individuals who in 1993 sup- gible for the EITC would no longer be Mr. INHOFE addressed the Chair. ported the huge tax increases, a very eligible. While its supporters praise The PRESIDING OFFICER. Does the large percentage of them are not hard work and self-reliance, their plan Senator from New Mexico yield time? around to vote today because those will make life more difficult for mil- Mr. DOMENICI. Yes, are we just who came up for reelection during the lions working in demanding, low-pay- open-ended on time? 1994 election, when that was the major ing jobs. The PRESIDING OFFICER. The time issue in their campaign, were defeated. In 1993, when the EITC was expanded, is off the resolution, so the Senator can We have shown that with charts on the the Treasury Department estimated yield time. floor many times before. that approximately 374,700 Alabama Mr. DOMENICI. Mr. President, how I thank the Senator for yielding. families would qualify for a financial much time does the Senator want? The PRESIDING OFFICER. Who break under the plan. Actually, almost Mr. INHOFE. Three minutes. yields time? 388,000 families ultimately qualified Mr. DOMENICI. I yield 3 minutes to Mr. EXON. Mr. President, I suggest under the EITC, a total of 22 percent of the junior Senator from Oklahoma. the absence of a quorum. the entire returns filed. If this plan is The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The adopted, these hundreds of thousands ator from Oklahoma is recognized. of families and millions of others Mr. INHOFE. Mr. President, I thank clerk will call the roll. across the country will see this benefit the Senator from New Mexico for yield- The bill clerk proceeded to call the evaporate. Approximately 17 million ing. I wanted to ask a question of the roll. low-income working Americans will distinguished Senator from Arkansas Mr. ABRAHAM. Mr. President, I ask see an immediate tax increase averag- when he was very eloquently express- unanimous consent that the order for ing $302; that tax increase will grow to ing his position. He was unable to yield the quorum call be rescinded. an average of $471 per year by 2005. to me. The PRESIDING OFFICER. Without Treasury Secretary Robert Rubin has What I was going to ask him is, I objection, it is so ordered. stated: ‘‘Low-income working families heard him state several times on the Mr. ABRAHAM. Mr. President, I ask will suffer if the Senate Finance Com- floor of this body the tax reductions unanimous consent that the pending mittee’s cut to the earned income tax that took place under the Reagan ad- ROCKEFELLER motion and the amend- credit becomes law. It is fundamen- ministration. There is a fact that has ment thereto be laid aside in the status tally unwise to raise income taxes on to be stated at this time, every time quo and that I may be recognized to America’s working families while high- someone talks about that, and that is offer an amendment. S 15652 CONGRESSIONAL RECORD — SENATE October 25, 1995 The PRESIDING OFFICER. Without in their offices and are wondering what charged against the bill if you use 10 objection, it is so ordered. we are doing. They have a right to minutes and we start from that point AMENDMENT NO. 2950 wonder. I will explain that we had an to allot time again; if you used an hour (Purpose: To provide for beneficiary understanding with the Democratic and we use 10 minutes, 1 hour and 10 incentive programs) leadership that we would set aside in a minutes would be charged against the Mr. ABRAHAM. Mr. President, I send status quo the previous motion to re- total hours of the bill and we start an amendment to the desk and ask for commit and the amendment to it, leave from that new point. its immediate consideration. it in a status quo format, and proceed That is no different than it has been The PRESIDING OFFICER. The to another amendment. forever. clerk will report. The other amendment is the amend- The PRESIDING OFFICER. The time The bill clerk read as follows: ment that Senator ABRAHAM offered. It is divided equally in that case. is being reviewed, but I believe we The Senator from Michigan [Mr. ABRAHAM] Mr. DOMENICI. Thereafter, the time ought to proceed with it. Why are we proposes an amendment numbered 2950. is divided equally. At the end of chapter 6 of title VII, insert doing this? I think everyone knows the following: that, since shortly before noon, we The PRESIDING OFFICER. The time SEC. . BENEFICIARY INCENTIVE PROGRAMS. have been working with the Demo- is allocated equally. (a) PROGRAM TO COLLECT INFORMATION ON cratic leadership, and they have been Mr. DOMENICI. That is a different FRAUD AND ABUSE.— working very hard, from what I can way of saying what I said. (1) ESTABLISHMENT OF PROGRAM.—Not later tell—and I truly believe that—to see if Mr. FORD. Mr. President, the ques- than 3 months after the date of the enact- we cannot narrow down the number of tion is, What happens if the Democrats ment of this Act, the Secretary of Health and Human Services (hereinafter in this sec- amendments and establish some proc- just take 10 minutes? They lose half of tion referred to as the ‘‘Secretary’’) shall es- ess which will be more orderly than 50 minutes, which is 25 minutes? tablish a program under which the Secretary just waiting until the end and having The PRESIDING OFFICER. The Sen- shall encourage individuals to report to the hundreds of amendments just offered. ator from Kentucky is correct. Secretary information on individuals and en- We are working on that, and we have Mr. FORD. So we are caught in the tities who are engaging or who have engaged not yet reached an agreement. We have dilemma here now that if the Repub- in acts or omissions which constitute agreed to take up the Abraham amend- licans take a full hour and we do not grounds for the imposition of a sanction ment in the normal course. We will under section 1128, section 1128A, or section take but say 10 minutes, then we lose 1128B of the Social Security Act, or who have take an hour, and that side can take 25 minutes of which they could get on otherwise engaged in fraud and abuse against what time they need. This will give us the next amendment. the medicare program for which there is a some time to further our negotiations, It seems like there ought to be some sanction provided under law. The program which will continue in a very lively other way. If we did not want to use shall discourage provision of, and not con- manner. our time or the Republican side did not sider, information which is frivolous or oth- I yield the floor. want to use their time, we could save erwise not relevant or material to the impo- Mr. FORD. Will the chairman of the that for an amendment we would like. sition of such a sanction. Budget Committee answer a question? (2) PAYMENT OF PORTION OF AMOUNTS COL- Mr. DOMENICI. Of course. But the rules are the rules, and I un- LECTED.—If an individual reports informa- Mr. FORD. As I understand it, we derstand. tion to the Secretary under the program es- have a motion before the Senate and Mr. DOMENICI. Maybe I ought to tablished under paragraph (1) which serves as clarify it. the basis for the collection by the Secretary then we have a first-degree amend- or the Attorney General of any amount of at ment. We do not have an amendment in I think I expressed it my way but I least $100 (other than any amount paid as a the second degree here; is that right? would rather express it this way: It has penalty under section 1128B of the Social Se- Mr. DOMENICI. We have a motion to been the rule since we had reconcili- curity Act), the Secretary may pay a portion recommit. ation on the floor in the Senate that of the amount collected to the individual Mr. FORD. And then we have an whatever amount of time is used on an (under procedures similar to those applicable amendment in the first degree. We amendment by both sides is charged under section 7623 of the Internal Revenue have used up all of the time allotted, equally to both sides. Code of 1986 to payments to individuals pro- unless we get unanimous consent on viding information on violations of such Is that not correct? Code). both of those; is that correct? The PRESIDING OFFICER. The Sen- (b) PROGRAM TO COLLECT INFORMATION ON Mr. DOMENICI. That is correct. Mr. FORD. We have set both of those ator is correct. PROGRAM EFFICIENCY.— Mr. DOMENICI. I told that to the dis- (1) ESTABLISHMENT OF PROGRAM.—Not later aside in this agreement here, and we than 3 months after the date of the enact- have an amendment in the first degree. tinguished Senator yesterday. We were ment of this Act, the Secretary shall estab- Mr. DOMENICI. Which is totally sep- discussing it. We are not changing a lish a program under which the Secretary arate and distinct, yes. thing here. The shoe is on both sides. shall encourage individuals to submit to the Mr. FORD. Now, this amendment has Sometimes it works the other way. It Secretary suggestions on methods to im- 2 hours. At the end of the 2-hour pe- has worked both ways in the times I prove the efficiency of the medicare pro- riod, an amendment in the second de- have managed the bills. gram. (2) PAYMENT OF PORTION OF PROGRAM SAV- gree, which would have an hour, would It will come out all right in the end. INGS.—If an individual submits a suggestion be in order; is that right? You will have your amendments, from to the Secretary under the program estab- Mr. DOMENICI. Correct. what I can tell. We can use more time lished under paragraph (1) which is adopted Mr. FORD. I thank the Senator. this way. by the Secretary and which results in sav- Mr. EXON. Will the Budget Commit- Mr. EXON. If I might just add some ings to the program, the Secretary may tee chairman yield for a further ques- editorial comment here, the problem make a payment to the individual of such tion? that we have is that at 9 o’clock this amount as the Secretary considers appro- Mr. DOMENICI. Sure. morning I was in the first meeting. We priate. Mr. EXON. If I have understood what have been meeting and talking and ad- Mr. ABRAHAM. Mr. President, I sug- you have said, this is a Republican vising and cajoling now going on al- gest the absence of a quorum. amendment, and 1 hour is allocated on most 12 hours. The PRESIDING OFFICER. The that side and 1 hour on this side. If this clerk will call the roll. side of the aisle only uses 5, 10, 15, or 20 The point I make is that I think it is The assistant legislative clerk pro- minutes, then we would only be time we start voting. I simply say that ceeded to call the roll. charged with that on our total 10-hour the delaying tactics thus far are just Mr. DOMENICI. Mr. President, I ask allotment; is that correct? cutting down the time that I think we unanimous consent that the order for Mr. DOMENICI. The Senator is cor- would like to use on this side of the the quorum call be rescinded. rect. aisle on several very key, very impor- The PRESIDING OFFICER. Without The PRESIDING OFFICER. That is tant amendments. objection, it is so ordered. not correct. I am not saying that the amendment Mr. DOMENICI. Mr. President, on Mr. DOMENICI. What would happen, being offered by the Senator from our time, I know a lot of Senators are Senator, is 1 hour and 10 minutes is Michigan is not an important one. It October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15653 probably is. But compared with the It is difficult to explain to Medicare sides of this debate. Increasingly, I many amendments we have ready to beneficiaries why dramatic changes in have grown deeply saddened because I offer and want to vote on this side—an- the program are necessary to keep it see the polarization that is taking other way of saying this, I am very from going bankrupt when many of place between the two sides of the much disturbed by the fact we are con- these same individuals have firsthand aisle. I tried to reflect on the profound tinuing to use up the time. experience with waste and fraud in the impact this bill will have on people, We only have a total of 20 hours to system. specifically, the 32 million people in debate the most far-reaching reconcili- Indeed, Mr. President, in my own the State of California. ation bill, maybe the most far-reaching State we recently had an incident In a sense, it is ironic that this bill is bill that has ever been presented to the where a Congressman had a constitu- called a ‘‘reconciliation’’ bill, for in re- U.S. Senate, when you consider all of ent come to him with an overcharging ality, other than in Washington-speak, its implications. of something in the vicinity of $400,000 it is far from a reconciliation that we I recognize we may be playing by the that was made in error. Nevertheless, have here on the floor today. rules but the rules in this particular it has been paid. instance might not be fair. I appeal Those kind of circumstances make at If one just looks at the size of the once again as one who has worked on least my constituents who are part of Medicaid and Medicare cuts, one can- this all day long, I wish we could start the Medicare Program frustrated, not help but be staggered by what its voting up or down on the important angry, and especially concerned when impact will likely be. Overall, the $450 amendments. they hear about changes we are mak- billion cut in Medicaid and Medicare, I do not believe that we should or ing in the program. They do not want would affect my State of California to could under the dictates of the 20-hour to see us just address the growth issues the tune of $54 billion in losses during maximum limit, that we should be tak- or just the solvency issues. They also the next 7 years. That breaks down as ing an hour on each side to debate the want us to address the problems they $36 billion in Medicare cuts and $18 bil- amendment that is being offered by the see every day with fraud, waste, and lion in Medicaid cuts. Those cuts will Senator from Michigan. It may be abuse in the program. have an enormous impact on the people something, when I know more, that I That, in my judgment, has to be ad- of California. will fully vote for. dressed in our bill. That is why I of- Let me give you an example of this I think time is wasting and I wanted fered this amendment. bill’s harsh consequences. In Califor- to make that point. I yield the floor. If our efforts at Medicare reform are nia, 15 percent of the current Medicare Mr. DOMENICI. I just want to say I to succeed we must demonstrate our recipients are also receiving Medicaid. think we have explained that we are seriousness about ending these abuses. That is 540,000 of the poorest seniors in using the time usefully. We are using I believe enlisting the aid of Medicare the State of California. They need Med- the time usefully to try to make a bet- beneficiaries, showing our resolve to icaid to meet their Medicare premiums ter arrangement for the rest of the bill. combat the problem can prove to be a and copayments. Premiums are being We ought to be through with that soon. valuable asset in exposing and elimi- doubled and, under the bill, they will Mr. ABRAHAM. Mr. President, I have nating waste and fraud from the sys- not have the assistance of Medicaid. sent an amendment to the desk which tem. What is, obviously, the likely result? Just to clarify, Mr. President, my has been read. Without Medicaid to assist these sen- amendment authorizes the Secretary of Mr. President, the savings necessary iors meet their payments, many will HHS to within 3 months establish two to rescue the Medicare program from lose their benefits and be placed at separate programs, one which would bankruptcy will not be found solely higher risk. basically be called a beneficiary incen- through eliminating waste, fraud and Further, for people suffering with abuse. Nevertheless, I believe it is in- tive program designed to allow seniors to report fraud, waste and so on, and if HIV/AIDS, Medicaid is the most impor- cumbent upon us to diligently pursue tant program in the Nation. With these and root out every vestige of ineffi- the fraud is significant, allow the Sec- retary to provide a financial reward to Medicaid cuts, what happens? It puts ciency in the system. added stress on the public hospital, the Therefore, I am offering this amend- the individual who reports it. The second program, also designed to county hospitals, in the State. ment which I think will produce addi- allow Medicare beneficiaries to benefit tional vigilance in the ballots against So let’s turn and look and see what is from ideas and suggestions in improv- Medicare waste and fraud. This amend- happening to the county hospital. In ing the program, would provide Medi- ment calls on the Secretary of Health the 58 counties of my State, county care beneficiaries awards for providing and Human Services to establish pro- hospitals—like San Francisco General us with recommendations specifically grams that enlist Medicare bene- in San Francisco or Martin Luther to the Secretary of HHS for improve- King, Jr., General in Los Angeles, will ficiaries in our efforts to eliminate ments to the Medicare Program by way waste, fraud and abuse in the Medicare lose an estimated $150 million over the of promoting greater efficiency. Once next 7 years. system. again, if the savings are significant, These beneficiary incentive pro- Now let’s turn to the great teaching the Secretary of HHS may provide a fi- hospitals in my State. The University grams, as they would be called, would nancial award to the individual whose come in two forms: One program would of California system is a great system, recommendation was submitted. probably the best in the world, with reward individuals who report fraudu- Mr. President, we are addressing the five great, major teaching hospitals. lent activities; the other program growth of Medicare and its expense in They are projected to lose $444 million would reward individual beneficiaries many different ways in this legislation. over the next 7 years. for suggestions they make which result I think a key component in the long- in greater efficiency and overall sav- term control of those costs has to be In a letter from the university sys- ings to the program. ferreting out this abuse and waste. tem, they inform me that, for the first The Secretary of Health and Human I believe this amendment, as part of time in history, the University of Cali- Services would be responsible for set- a package of similar reform, can make fornia’s teaching hospitals will go into ting up each program and for providing a significant impact in reducing those deficit. financial remuneration to those indi- kind of costs that stem from either in- Great teaching hospitals going into viduals reporting instances of tangible efficiencies in the program or fraud or deficit. fraud and waste. mismanagement in the program. The Senate Finance Committee’s rec- Public hospitals not being able to I am pleased to offer this amendment keep up. onciliation package currently does not tonight and I urge my colleagues to contain a beneficiary incentive pro- support the amendment. Medicaid cuts that will prevent the gram or provision. The amendment I Mr. EXON. Mr. President, I yield 10 poorest in our Nation from being able offer would include in the Senate rec- minutes to the Senator from Califor- to use Medicare. onciliation bill language which is simi- nia. I really had to ask myself the ques- lar to that currently in the House pro- Mrs. FEINSTEIN. Mr. President, all tion—is it really necessary to do it this posal. day I have listened attentively to both way? This is where the bill becomes, I S 15654 CONGRESSIONAL RECORD — SENATE October 25, 1995 must honestly say, immoral. Because cent of all of the foreign born, that has cannot accept. The lower you are on the answer to the question has to be, more illegal immigrants in it than all the economic ladder the more difficult no, it is not necessary. the other States, combined, and has it is. When you add it all up, you know probably the largest number of needy I am sure I have exceeded my time. I that these cuts are as deep as they are people. apologize. I got a bit wound up. But I for one reason, and one reason alone— We recently considered welfare re- think it suffices to say that I do not to provide an enormous tax cut in this form on the Senate floor. I voted for know how anyone can vote for this bill bill, while the poor get hit hard by the welfare reform, yet welfare reform is a and return to their people and say, changes in the earned income tax cred- $7 billion cut to California—no ques- ‘‘You are not going to be hurt by it.’’ I it. tion—by any independent analyses. I know I cannot. I am one Democrat who supports a voted for it because I felt there was a Several Senators addressed the cut in capital gains, but not on the redeeming value in making the nec- Chair. backs of poor people. It is simply not essary changes and moving off chronic The PRESIDING OFFICER. The Sen- what we are supposed to do—either dependency. ator from Nebraska. party, Republican or Democrat. Yet, how can I vote for this budget I have a basic philosophical belief. bill and show up back in California Mr. EXON. Mr. President, I want to What Government should do is those when I know the reason the cuts are so thank my friend and colleague from things that the private sector cannot deep is simply to give a tax cut? the State of California for a very excel- do. So Medicare and Medicaid are an Who benefits? lent statement, and, as usual, she puts important part of that philosophy. To My husband is a merchant banker. it into perspective so we can all under- take these deep cuts at this time, all at He deals in this kind of financial area. stand it. I think the personal remark once, without any hearings or full He would love to have a capital gains that she made with regard to her hus- knowledge of how these cuts will fall? cut. He pays major income taxes. They band should set the tone of understand- What does happen to the five great went up in 1993, just like 275,000 other ing that I think is very lacking on the teaching hospitals? families out of 13 million taxpayers in budget reconciliation document that When do they have a chance to give the State of California. we have been addressing and that I ad- testimony and indicate what they can But does he want to get a capital dressed along similar lines this morn- or what they cannot save? What does gains cut under these conditions? Any- ing. happen to 540,000 seniors who depend body can call him and he will say no. It Mr. President, I would simply like to upon Medicaid to make their Medicare is morally wrong. It is not right to do say that, subject to their recognition premium and copayments? What hap- it this way. And that is the gut-level by the Chair, I yield 10 minutes, first pens to them? We have not discussed it. problem that I have with this bill that to the Senator from Nebraska, Senator Nobody knows. so saddens me. KERREY, and followed by that 10 min- What happens to the county hos- The Republican Party has been utes to the Senator from Arkansas, pitals, already cut deeply, the major known as the party that is most con- Senator PRYOR. providers of indigent care in many cerned about the national debt. True, The PRESIDING OFFICER. The Sen- areas across California? The DSH pay- we have a national debt of $4.9 trillion, ator from Nebraska is recognized for 10 ments are not going to be enough. which has developed, largely, over the minutes. What happens to the affected AIDS/HIV past 25 years. But this budget bill will Mr. KERREY. I thank the Chair. community, more dependent on Medic- add to the deficit over its 7 years. Mr. President, several Members, Re- aid than any other single program? Under this bill, the Nation’s debt will publicans and Democrats, have come to These are questions that deserve a increase by about $670 billion over the the floor and have decided to use the hearing. These are questions that de- next 7 years—about $245 billion more bipartisan Entitlement Commission— serve the wisdom of both parties sit- than if no tax cut is enacted. This is actually established by President Clin- ting down and working it out. not fiscally responsible action. ton last year—as either the basis for Mr. President, I am delighted to see Further, I recently learned that June supporting the reconciliation agree- the Senator from Arizona in the chair, O’Neill of the Congressional Budget Of- ment or the basis for opposing it. My because we just had an example of fice reports that, if off-budget items, opposition I must say is reluctant. I where we can work together. He and I such as Social Security, where not in- would love to be able to join with Sen- both know that the majority leader, corporated into the deficit calculation, ator GREGG, Senator SIMPSON, and oth- and you as a major author, did not the budget would show a $105 billion ers who participated in this effort and have to compromise on the Jerusalem deficit in 2002 under the Republican understand that the severity of the bill we recently considered on the leadership’s plan, not the balanced long-term problems with entitlements floor. budget they claim. Now is not the time is not just Medicare and Medicaid, and You had the votes to do it without it. for an excessive, and misdirected, tax other entitlements, but the big one, And, yet, your feeling was—and I think cut. Social Security. The long-term prob- correctly so—that it would be a better The current deficit is $160 billion and lem is not something that we can af- bill, with less divisiveness, if we sat that is too high and needs to be elimi- ford to put off. Every year that we wait down and tried to work out our dif- nated. But the deficit has been as high the problem gets worse. ferences. And, Mr. President, you and I as $290 billion only a few years ago. and others sat down at least twice and True, the deficit picks up in the out- All of us who look at the situation of we worked out our differences and we years of this decade. And true, Medic- retirement understand that the sooner were able to produce a bill that got all aid and Medicare are partially respon- you begin to plan the less you have to but five votes in this esteemed body. sible for it and need to be changed. put away. I really think that is the way our I will support changes in these pro- So those that say we will wait until people—those people who elected us— grams, like an age of eligibility 1997 to deal with Social Security are think that is what they elected us to change. I will support means testing of not doing beneficiaries any favor. The do. They didn’t elect us to be so par- premiums, not because I want to, but longer we wait the more severe the tisan that we drive a divisive wedge because I believe it has to be done. problem is, and the more the severe the into two of the most important pro- But to take the cuts this way, for the adjustments we have to make. And we grams, Medicaid and Medicare, that purpose of being able to rationalize a should recognize that when you are touch human lives in this country. tax cut directing billions to the invest- dealing with retirement or with health I will tell you honestly—God strike ment banker types of this country, is care, if there is a requirement to save me dead if it is wrong—I do not know absolutely wrong. It is morally wrong. money and accumulate reserves, as how the State of California is going to And to go back to California and tell there is with our trust funds, that you cope with these cuts. They are deep, senior citizens, some of whom, in my have to do it over a prolonged period of they are wide and they are enormous State are eating dog food—true story, time. for a State that has a growing poor eating dog food, and using Medicaid to Mr. President, the reconciliation population, that is the site of 40 per- pay their premiums, is something I agreement does not solve that long- October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15655 term problem. The appropriated ac- So not only do we need to balance Texas, a relatively conservative State, counts this year are about 26 percent of the budget but we need to interrupt that 50 percent of all babies delivered the whole budget at the end of the 7- this trend where America is moving in in the State of Texas are paid for by year period. We are seeing a decrease in a direction which our Federal Govern- Medicaid—Medicaid, Mr. President. the appropriated accounts—a continu- ment is moving in—a direction of be- This is supposed to be a poverty pro- ation. I mean it is the most dramatic coming an ATM machine. Again, time gram, and it is supposed to be a mini- chart that we have in the entitlement is not on our side. You may say, ‘‘Oh, mal safety net. report. I commend it to colleagues who my gosh. I do not want to increase the The reason that it is increasingly are interested in it, because when you eligibility age because that will make being used by working people is that get to the back and see what Senator me unpopular. I do not want to deal we do not have a very good and a very DANFORTH, I, and Senator SIMPSON rec- with Social Security because it is too flexible program. We are saying, as ommended you can see that you are controversial.’’ But we have to. many Republicans have come to the dealing with real tough choices. We have obligations on the table floor and said, there is something So I am not objecting to making right now that we cannot meet. We can wrong when I have working people tough choices. I am not objecting to meet them over the next 5 or 6 years. without insurance paying a 2.9 percent saying that I will cast a vote for some- We are not going to be able to meet payroll tax to fund health care pro- thing that might be unpopular. I am them long term. grams for some that can afford to pay not going to criticize the Republicans, The flaw in the Republican proposal, the bills. There is something wrong for example, for choosing to increase in my opinion, comes from the need to with that. the eligibility age. I think it has to be satisfy a relatively small number of But to reconstruct the health care increased. But what we observe is a people that campaigned on a promise safety net, we cannot just adjust the long-term problem. Again, when you to reduce taxes. It is the tax cut that payment system in Medicare. We can- say long-term problem the presump- makes it imperative to get more over not just block grant Medicaid. We tion is that we can wait a long time be- the short term and less over the long ought to be saying let us re-establish a fore we deal with it. You cannot be- term. That is why I think this thing fundamentally different way of becom- cause the longer you wait the more se- may have run aground. But Americans ing eligible for health care, and then rious the issue becomes. should not suffer under the illusion let us make sure subsidies go to those Mr. President, I want Members to un- that is there is an absence of bipartisan who need it, and make sure we provide derstand that there are facts here in willingness to look at the future, and people with the basis as well, as both the Entitlement Commission report, as say, ‘‘We are going to change our laws Republicans and Democrats have well as recommendations in the Enti- so as to change that future.’’ Not only talked about, and accumulating the re- tlement Commission, that I believe should we be moving toward the bal- sources to be able to pay for it. need to be considered. I regret the anced budget, but, second, we need to Mr. President, if this proposal in ad- President did not take those rec- get consensus that we are going to cap dition to balancing the budget fixes the ommendations and make it a part of all entitlement programs at a fixed cost of entitlements, instead of the Re- his budget. I think we would be in a percent of our budget—64 percent this publicans looking across the aisle and different shape right now, if, in fact, year. I would be thrilled to get an saying we are in the majority, we have the observations of the recommenda- agreement on 70 percent instead of the looked at this Entitlement Commis- tions of the Entitlement Commission 74 percent that it is going to be in the sion report, we agree, we have to con- were accepted by the administration. year 2002. But they were not. But there is still bi- Third, Mr. President, I have strong trol the cost of entitlements, here is partisan support for action, and a will- objections to this proposal because in- the proposal to fix it—if the Repub- ingness to risk political careers using stead of building a new safety net for a licans had said we now come to the facts and using the truth, and hoping changed economy, which I think we table in an understanding that, as well the American people trust that we need, we are saying as businesses are as the market working right now to have to make change. downsized they become more produc- control the cost of health care, there In short, Mr. President, the goal for tive, and more competitive. But as are some individuals that are not going us in this exercise cannot just be to they do it dictates that we examine our to be able to purchase it, that is the balance the budget because, if all we do safety net and build a different one. I basis for Republicans supporting Medi- is balance the budget, we have other think on the top of the list, if you are care. problems that will still need to be ad- trying to rebuild a safety net, is to We understand that after 65, a lot of dressed. I have identified a second one. change the way we establish eligibility people cannot afford to pay the bills The second one is the growing cost of for health insurance in this country. because health care gets more expen- entitlements as a percent of our Fed- And rather than saying we are going to sive. Well, if it is true for 75-year-old eral budget. With all the rhetoric on just change Medicare and reform Medi- people, it is also true for 25-year-old both sides of the issue, the amount of care, we ought to be reforming Medi- people in the work force. We ought not money that the Congress extracts from care, Medicaid, the income tax deduc- just be changing Medicare to save the U.S. economy has remained rel- tion, and the VA system—establishing money. We ought to reform our health atively constant over the last 50 years. a simplified system of eligibility say- care system so that every single Amer- It went up during World War II, and it ing, if you are an American and a legal ican knows with certainty they are went up during the Vietnam war, but it resident, you are in but you have to going to be covered. remained roughly 19 percent of GDP. It participate personally in controls. We If the Republican proposal did those is unlikely that is going to change. It are not going to subsidize you, if you three things at a minimum, then I is likely that is going to remain the do not need to be. We have to, rather would be standing here as a Democrat same even with the proposal to reduce than block granting for budgetary rea- supporting it. I would love to be able to taxes that is in this piece of legisla- sons, have a new safety net. get to that point. I know there are tion. It really does not make a dent in If we want to remain an aggressive many people on the other side of the that. You are still going to be pulling market economy where our businesses aisle very uncomfortable with the tax about 19 percent of GDP. That means have an incentive to maintain their cuts, very uncomfortable in particular the more that we allocate for man- productive edge, we have to have a with the Joint Tax Committee that has dated programs the less we have; not safety net that enables people when disclosed to Americans that every sin- just for defense but for nondefense ap- they find themselves out of work to gle person with a family income of propriations accounts. It severely re- still know that they have health insur- $30,000 or under is going to have a tax stricts our ability to build roads, our ance, and still know that they are increase. I know they are not com- ability to educate our people, to do going to be able to pay the medical fortable about that and would prefer to training, and to do things that I think bills. have it changed. I know they under- Republicans and Democrats can agree I was down in Texas over the week- stand that the entitlements are a prob- need to occur. end and discovered in the State of lem, that we have to do more, not less, S 15656 CONGRESSIONAL RECORD — SENATE October 25, 1995 if we expect to have the resources to and kept them in a whimpering state of seda- First, I would like, if I might, to invest in our future. tion. There were tales of urine-soaked hos- show our colleagues the projected I know there is the basis to produce pital gowns and of false teeth collected at growth in the nursing home popu- a bipartisan reconciliation bill that we night and thrown into a communal vessel lation. Today, we have approximately 2 that patients had to fish through in the could send on to the President hope- morning. All this and more was documented million residents in American nursing fully for his signature. by the National Academy of Sciences in 1986. homes. By the year 2003, just a few Unfortunately, that does not appear The next year Congress passed legislation to years from now, we are going to see 4.3 to be the direction we are heading. Un- address decades of abuse of the elderly by million American citizens residing in fortunately, we appear to be heading in profiteering nursing-home operators. American nursing homes. In fact, most a direction where we are going to sort But in the blink of an eye these days, a of the people who reach the age of 65 of rigidly hold on, have a minimum carefully built construct of regulations can are going to be in this category. They amount of debate, limit the number of be blown away without so much as a formal hearing. As part of a crusade to curb federal are going to be living in a nursing amendments offered, pass legislation authority, and with only a simple assertion home. for the short term and hope the people that the regulations are burdensome, two I can only imagine. If the 2 million do not discover we left the long-term congressional committees have sent to the nursing home residents in this country problem in place; that we have con- floor for a vote this week legislation that could be surveyed or polled on how structed a safety net that is not ade- would repeal federal standards. There would they felt about removing all Federal quate for the kind of market economy be no protection against patients being re- strained, no standards on staffing or when nursing home standards, it does not we face today and unfortunately will take a great amount of imagination to have left our children, rather than someone could be discharged after using up all his or her money. Niceties like nurses know what the results would be. Of blessed in the future, still cursed by an would be optional, since there is no require- course, in overwhelming numbers, un- insufficient amount of investment. ment in the new legislation that a licensed doubtedly, they would vote to continue The PRESIDING OFFICER. The Sen- nurse be present. Instead there would be so- these present Federal standards. ator’s time has expired. called patient rights—to receive mail, keep The Senator from Arkansas. personal belongings and be free from abuse For example, the choice of a physi- Mr. PRYOR. Mr. President, I thank and forced labor—rights that may duplicate, cian, the care and the treatment in the Chair for recognizing me. but do not exceed, the Geneva Conventions choosing a physician, the freedom from I am just going to speak a very few for prisoners of war. chemical and physical restraints, is moments on a subject that is and has Republicans justify the changes by saying this something that our colleagues on the states know best how to run nursing been very near and dear to my heart the other side of the aisle want to re- homes. Of course, it was the failure of state move? Just last week in the Senate Fi- during my entire period, you might regulation that got the reforms passed in the say, in the field of public life. It relates first place. It is unlikely that with $182 bil- nance Committee, on a vote of 10 to 10, to nursing home standards, Mr. Presi- lion less in federal Medicaid money over every Democrat voted for retention of dent. seven years the states will embrace high- these Federal standards, every Repub- The legislation that we are consider- quality care. The market solution would be lican except one, Senator CHAFEE of ing tonight in this Chamber—I do not to replace that nurse’s aide at $10 an hour Rhode Island, voted to eliminate all know how many thousands of pages, with an unskilled worker at $5 and to sub- Federal standards in nursing homes. stitute thin soup and macaroni for meat and about 2,000, I think—includes what we vegetables. What about the issue, Mr. President, might think of as just about every- In fact, it turns out that being humane ac- of privacy in receiving mail and com- thing, that nothing was forgotten, tually saves money. Catherine Hawes of the munications? What about the confiden- nothing was left out, nothing was nonprofit Research Triangle Institute esti- tiality of medical records? What about omitted from the budget reconciliation mated that after the 1987 reform legislation the protection from unwarranted bill that we are considering this was passed, $2 billion was saved by 269 nurs- transfer to another nursing home or Wednesday evening in the Senate. But ing homes from fewer emergency hospitaliza- discharge in the middle of the night tions, less malnutrition, a 30% decrease in there is something very critical left the use of catheters and a 25% reduction in from the particular nursing home the out of the budget reconciliation the use of restraints. Says Sarah Burger of resident finds himself or herself in? brought to us by our friends from the the National Citizens Coalition for Nursing Mr. President, another chart indi- other side of the aisle. What was left Home Reform: ‘‘Operators didn’t know until cates something that I think is ex- out, what is notably absent is any Fed- they were forced to stop doing it that the tremely dramatic and once again indi- main cause of incontinence and bedsores is eral national nursing home standards. cates the real need for us to retain at Mr. President, only this week, in being restrained and not being able to get to the bathroom.’’ But wholesale budget slash- least the minimum of Federal stand- Time magazine, we see a remarkable ards for nursing homes. Look at the article entitled ‘‘Back to the Dark ing will no doubt pressure some facilities to cut corners. Senator William Cohen of characteristics of the nursing home pa- Ages,’’ which predicts what is going to Maine, one of the few Republicans to oppose tient or resident today: 77 percent need happen in the American nursing home the rollback, warns, ‘‘If we weaken federal help in dressing; 63 percent need help in to some 2 million residents if we to- enforcement, we will be sent back to the toileting; 91 percent need help in bath- tally do away with Federal standards. dark days of substandard nursing homes, ing; 66 percent have a mental disorder. Mr. President, it was in 1987 when the with millions of elderly at risk.’’ Republicans may have entered the slap- And there is one more figure that did late John Heinz, the Senator from not make it to the chart, Mr. Presi- Pennsylvania, the former Senator from happy phase of their revolution, killing regu- lations simply because they can. Indeed, the dent. That is that over 70 percent of Maine, Senator Mitchell, and many of nursing-home industry has not even asked the patients today residing in Ameri- us joined on this side of the aisle with for regulatory relief, in part because it would ca’s nursing homes have no relative our friends on the other side of the allow unscrupulous operators to flourish and and no advocate out there on a daily aisle to enact for the first time Federal bring shame on all of them. But Speaker basis visiting them or advocating their standards for nursing homes. Gingrich is hurtling along, fearless about cause or trying to support bringing If I might, Mr. President, I ask unan- sending Mom and Dad back to the future, to them a better quality of life. imous consent to place in the RECORD the day of nursing homes that lack nurses this article from Time magazine. and feel nothing like home. Mr. President, there is also a letter There being no objection, the article Mr. PRYOR. I shall read only one being circulated dated October 24 ad- was ordered to be printed in the sentence. ‘‘Indeed, the nursing home dressed to our colleague, Senator DOLE, RECORD, as follows: industry has not even asked for regu- making one final plea to Senator DOLE BACK TO THE DARK AGES latory relief, in part because it would and all of us in this body to restore (By Margaret Carlson) allow unscrupulous operators to flour- these meaningful nursing home stand- ards. It is signed by the American Anyone pondering his or her sunset years ish and bring shame on all of them.’’ will remember the expose´ of the shocking Mr. President, that is going to be ex- Health Care Association, by the Amer- conditions in nursing homes circa 1970. Woe- actly the status of the residents who ican Association of Homes and Services fully undertrained workers strapped patients are living today in the American nurs- for the Aging, by the Catholic Health to hard-backed chairs, fed them cheap diets ing home. Association, and down the line. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15657 I ask unanimous consent that this and state regulators. It was a painstaking How much time is left on each side? letter all of us received in the Senate process that worked. In fact, OBRA might The PRESIDING OFFICER. The Sen- depict one of the finest collaborative be printed in the RECORD. ator from Michigan has 481⁄2 minutes, There being no objection, the letter achievements ever in the history of health care legislation. and the other side has 26 minutes. was ordered to be printed in the Manor Care proudly supported OBRA in Mr. ABRAHAM. Thank you, Mr. RECORD, as follows: 1987 because the legislation offered a valu- President. OCTOBER 24, 1995. able means of protecting and promoting the Mr. President, I yield myself such DEAR SENATOR DOLE: As providers of long- quality of life for one of the most vulnerable time as I may need to make a few brief segments of our population. We must afford term care services, we are concerned that comments with regard to my amend- the current Finance Committee proposal to nursing home residents an environment impose a block grant financing mechanism which is safe and ensures their physical and ment, which I would like to bring us for Medicaid fails to ensure that adequate re- mental well-being. OBRA ’87 has been widely back to for a moment. sources will be made available to meet the successful in accomplishing this goal. First of all, the issue of fraud and needs of our nation’s elderly, disabled, and Manor Care pledges to continue to meet abuse in Medicare is a problem that infirm. We fear that the proposed annual in- these federal quality standards because they has been widely recognized by Members creases in federal Medicaid funding for state are reasonable, and have led to significant of the Senate, and I would like to call improvements in the care delivered to our programs will be insufficient to meet the attention to several Members who have quality of care needed by residents of long- residents. As a national company, we are term care facilities and subsequently reduce supportive of the uniformity and consistency been actively engaged in trying to fer- access to services. Furthermore, the failure these standards provide across the states. ret out these problems so that we to meet the resources needs anticipated in OBRA created a system of care delivery to might address them in ways such as future years for these services will negate help guarantee the dignity and respect of in- the amendment I am presenting here the many advances made in this area as a re- stitutionalized seniors. Do not undo the val- tonight. uable work that has been done. We ask that sult of the enactment of the nursing home First, I would like to acknowledge reform provisions of OBRA ’87. Congress support retention of the Nursing the efforts of Senator KYL and Senator We urge you to support the retention of Home Reform Act and its standards. Stated federal oversight of nursing home quality most simply, it is the right thing to do. MCCAIN—Senator MCCAIN in particular, linked to a statutory provision ensuring that Mr. PRYOR. Mr. President, these who has worked in this area a lot, who adequate financial resources are made avail- particular standards which have been has separate legislation, I know, on able to meet prescribed levels of service. Al- on the books now not even for quite a this topic; and his leadership on this though this linkage can take several forms, decade are already paying dividends. issue has helped to bring it to our at- the current formulation which backs the For example, if we would just look at tention. nursing home reforms of OBRA ’87 to a stat- More recently, I would also like to utory direction that payors of services (both an additional chart to see what is hap- federal and state) must ensure the payment pening in improved resident outcomes, acknowledge, and then quote, from a of adequate rates has proven a workable the maintenance of the ADL function, report, an ongoing, actual effort by mechanism and should not be repealed. what it takes to daily exist, we see the Senator COHEN, who is also chairman of Federal nursing home reform standards, pre-OBRA functional status in the pur- our Senate Special Committee on joined with existing reimbursement stand- ple, we see the red, the post-OBRA Aging, an investigative staff report ards have resulted in a steady improvement functional status showing a dramatic which he conducted and which was re- in the quality of long-term care services. increase in the very basic quality of leased July 7, 1994. It has identified Without such a linkage, this quality of care countless examples of Medicare fraud can not be sustained. It is our sincere desire life because of these nursing home to move forward with the quality of care pro- standards. and abuse, the kind of abuse and fraud vided in nursing homes, and recognize that We look, Mr. President, and see what that, hopefully, this amendment which the ability to do so is dependent upon the is happening in improved care for the I have presented tonight can address. provision of adequate financial resources. nursing home resident. ‘‘Decreases in Without going into all the details at Sincerely, Problem Areas.’’ Physical restraints this time—although I may from time American Health Care Association (AHCA) are going down; dehydration is going to time during the debate mention spe- American Association of Homes and Serv- ices for the Aging (AAHA) down; indwelling urinary catheters, 29 cific cases—let me just focus on an Catholic Health Association percent, going down. area that was just touched on by the InterHealth What we are seeing here, Mr. Presi- Senator from Arkansas; namely, the Horizon CMS dent, are hard-won gains that we are area of nursing homes. Clinton Village Nursing Home, Oakland, about to eliminate in one fell swoop The investigative report revealed a California simply because this particular budget considerable number of cases involving Qualicare Nursing Home, Detroit, MI reconciliation does not contain Federal Westmoreland Manor, Greensburg, PA direct targeting of nursing home pa- Services Employees International Union nursing home standards to protect the tients in which both the industries that (SEIU) American nursing home resident. supply products and services to the American Federation of State, County, and Finally, Mr. President, let me ask, homes and the owners and administra- Municipal Employees (AFSCME) how would we vote in this body—when tors of the homes are involved in fraud- United Auto Workers (UAW) this issue comes before the Senate, how ulent and abusive practices. would we vote if we knew that Monday Nursing home owners have been convicted STATEMENT OF STEWART BAINUM, JR., SUB- our mother or our father or our son or of charging personal luxury items like swim- MITTED TO THE SENATE SPECIAL COMMITTEE our daughter or even ourselves were ming pools to Medicaid cost reports. HCFA, ON AGING, OCTOBER 26, 1995 about to enter a nursing home and be- the HHS [inspector general’s office], and the As the Chairman and Chief Executive Offi- come yet another statistic? How would Minority committee staff are continuing to cer of Manor Care, Inc., I want to express our we vote, Mr. President? investigate nursing homes * * * strong support for retention of the Nursing I ask my colleagues to strongly con- Home Reform Act of 1987 (OBRA ’87). Manor as was the case at the time this report Care owns and operates 170 skilled nursing sider the opportunity, when it becomes was revealed. facilities in 28 states, and provides care to available, to retain these basic nursing Let me cite two specific cases. over 20,000 residents. home standards and to continue them A Minnesota speech therapist submitted The OBRA ’87 reforms represent the most as a part of the law of this land and the false claims to Medicare for services pro- comprehensive revision of nursing home reg- basic protections that we must not vided to nursing home residents. The thera- ulations since the inception of the Medicare take away from these 2 million, and pist also received Medicaid payments for and Medicaid programs in the sixties. As I going to soon be 4 million, American speech therapy he never actually per- recall, the bill was over 1000 pages long, and formed—and the investigation revealed that addressed critical areas of care, such as resi- citizens residing in our nursing homes. he had been paid for services ‘‘rendered to dent assessment and care planning, nurse Mr. President, I yield the floor. patients’’ several days after they had died. aide training and testing, resident rights, Mr. ABRAHAM addressed the Chair. He was also observed using flash cards with nurse staffing ratios, and enforcement. The The PRESIDING OFFICER. The Sen- a blind resident, and then billing for reim- final product reflected the agreement ator from Michigan. bursement. reached among 60 national organizations, Mr. ABRAHAM. Parliamentary in- representing consumers, seniors, providers, quiry. Another case: S 15658 CONGRESSIONAL RECORD — SENATE October 25, 1995 The owner of a Pennsylvania rehabilita- are not wrong. They are right. There is those certainly are important. In the tion service was indicted for allegedly oper- fraud. There is abuse. There are things long run, I think this provision is going ating a scheme to defraud Medicare by sub- that need to be done. to save money, but that is really not mitting false claims for speech therapy pro- So I would like to congratulate my the main reason it is in this bill. vided to patients in nursing homes. The colleague from Michigan and give him owner allegedly told speech therapists to re- It is really not the most significant cruit Medicare clients even though he knew my full support for this particular thing about this welfare provision, be- their therapy would not be covered under amendment. cause in this bill, we are changing the Medicare. Mr. President, the reconciliation bill culture. In this bill, we are turning our Before submitting the paperwork for reim- that we are debating tonight and will back on the last 30 years where what bursement, the speech therapists would re- be debating tomorrow, probably also we really have been doing in this soci- write their patient reports so that they into Friday, has great historic signifi- would appear to be medically necessary re- ety—it has been unintended—but what cance. It has many different parts to it, we really have been doing is keeping habilitation services. The employees then al- as has already been pointed out to- legedly falsified bills submitted to Medicare, people alive. We have been feeding peo- night. ple, we have been keeping them on wel- including certifications by doctors that pa- One of the provisions in this bill that tients needed continued speech therapy, and fare. also falsified patients’ medical records. my colleague from Michigan men- tioned several hours ago when he was I guess we have done a pretty good Mr. President, we can talk about the on the floor I would also like to briefly job in that respect. But what we really different problems in the nursing home comment about, and that has to do should be doing is what we are doing issue, one many of us are concerned with the tax credit, the $500 tax credit with this bill, and that is, moving from about. One of the reasons this amend- for those couples, those families, who a system of welfare, whose goal is to ment which I have offered tonight is have children. There has been a lot of maintain people, to a system of welfare before us is because it helps to address talk about what this might do to help whose goal is to help people realize the some of the problems that do go on in stimulate the economy, a lot of talk American dream, to help them get nursing homes. about what impact this has on this par- themselves off welfare so they can fully I will cite other examples in other ticular bill. participate in the great American contexts in which Medicare fraud is But I think the main reason, Mr. dream. running up the costs of Medicare, costs President, for having this provision, Let me briefly discuss, if I can, Mr. that we should address through this and why so many of us on this floor to- President, how this bill does this. This amendment that I am offering, as well night insisted that this provision be in bill promotes work, not welfare. It pro- as some of the other items included in the bill, is because it is a question of poses radical change based on the prin- the reconciliation bill before us. fairness, it is a question of equity. ciple that the only way to succeed in At this time, Mr. President, I would If we look at the tax burden that our reforming welfare is to get welfare out like to yield 10 minutes of our remain- Government has placed on working of Washington, DC. We are only going ing time to the Senator from Ohio. men and women and on their families, to change welfare when we turn the Mr. DEWINE addressed the Chair. what we find is that that burden has power back to the local communities, The PRESIDING OFFICER. The Sen- really impacted how people live their we turn the money back to the local ator from Ohio. lives today. Let me give you a statis- communities. Washington, DC, has Mr. DEWINE. Let me thank my col- tic. If you took a family with four chil- demonstrated for decades that it can- league from Michigan for yielding time dren in 1960 and compared them with a not reform welfare. and say that I rise in strong support of family of four children in 1995, what The innovation that has occurred in the Abraham amendment. you find when you strip away inflation the welfare area in the attempt to get My friend from Michigan said a mo- is that the tax burden on that family people to work has not occurred over ment ago that he has many examples has gone up in real dollars 220 per- the last few years in Washington. of constituents who have had firsthand cent—220 percent. So each one of us has Where you see the innovation is in the experiences. My guess is that there is constituents back in our home States 50 States. The States have truly be- not a Member of this body who could who are working second jobs, or third come the laboratories of democracy. not say the same thing. As I travel the jobs or where the spouse has taken a And so what we have seen in the last State of Ohio, I talk to people about second job or maybe taken a first job, few years is Governors and State legis- the Medicare issue and what we need to who would not do that but for the fact latures who have had to petition Wash- do, the steps that we will have to take that this tax burden has been imposed ington, have had to come hat in hand to preserve and protect and strengthen on them. to Washington and deal with some Medicare. And people will always talk And so you have one of the spouses unelected bureaucrat to ask permission to me about the fraud, talk to me working one job full-time just to pay to be bold and innovative and to try a about abuse. Many times I travel the the taxes, just to keep the family new program back in their home State. State. And they have specific exam- standard of living where they believe it What we are saying with this bill is ples. I suspect that every single Mem- should be and to help educate their ber of this body could say the same enough is enough, we trust the States. children. That is the perverse impact That is where the innovation has been. thing. that the Tax Code has had on families, I have had my staff go through some That is where the changes are going to and the fact that the Tax Code has not, be made. Let us get the money out of of the letters that we have received. over the years since 1960, for example, Here are just a few of them, people who Washington, get the power out of kept up in any way, shape or form with Washington. have written to us, people who I have inflation. talked to personally, who have de- What this $500 tax credit does is helps Real change is only going to come, scribed specific incidents that they be- to rectify that injustice and bring some Mr. President, at the State level. And lieve constitute fraud. equity to the tax system. so the thrust of this bill is, as I said, to I think my colleague from Michigan Mr. President, another major provi- get the power and the money and the is right on point, because I think one of sion of this bill that we have in front of decisions out of Washington, DC. the things that we have to do is to en- us has to do with welfare. I believe that It will take the States time to fix list the public’s help in this effort to this bill is an essential step toward cre- this broken system. I think we have to deal with the fraud and abuse. It has ating jobs and opportunity for the be very realistic about this. Welfare been my experience, Mr. President, American people, and I believe that the did not become a wreck overnight, and that the American people are generally welfare provision goes a long way in it is not going to be fixed overnight. In right. And in this particular case, the doing that. fact, it will not get fixed at all if the American people, the people who are on This particular provision encourages power course stays here at the Federal Medicare, the children of people who the culture of work instead of the cul- level. are on Medicare who have been in- ture of welfare. In the case of the wel- The welfare provisions contained in volved in maybe paying the bills or fare provision, again, there has been a this bill will help accomplish this his- overseeing some of the finances, they lot of talk about dollars and cents, and toric transfer of power away from October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15659 Washington. It will transfer welfare re- fewer people need welfare in the first basically two different philosophies in sponsibility to the States in the form place. this Chamber, as we approach these is- of block grants. With these changes and the underly- sues and problems. One believes that The bill would also establish a tough ing idea of promoting work and getting the Government, by growing larger and new uniform work requirement for wel- welfare out of Washington, the Senate spending more money, can solve these fare. Next year, under this legislation, welfare reform package is a major step problems, in the face of all the evi- to continue receiving block grant toward breaking the cycle of welfare dence to the contrary. We, on the other money, States will have to make sure dependency once and for all. hand, believe that Government ought that at least 25 percent of the people on The PRESIDING OFFICER. The Sen- to do those things that Government welfare are working in return for the ator’s time has expired. does best, that we should shrink the benefits that they receive. Mr. ABRAHAM addressed the Chair. size of the influence of the Federal I ask for 3 additional minutes. The PRESIDING OFFICER. The Sen- Government on people’s lives, give Mr. ABRAHAM. Mr. President, I ator from Michigan. more power back to the States, back to yield 3 minutes to the Senator from Mr. ABRAHAM. Mr. President, I the localities, and leave more dollars Ohio. yield 10 minutes to the Senator from in the pockets of people who earn those The PRESIDING OFFICER. The Sen- Tennessee. dollars. It is a pretty simple propo- ator from Ohio is recognized. Mr. THOMPSON. Does the Senator sition. Mr. DEWINE. Mr. President, that per- from North Dakota wish to go next? But there are legitimate issues. centage will continue to rise every Mr. DORGAN. How much time re- There is a legitimate issue as to how year, and by the year 2000 at least 50 mains on each side? far we should go with regard to Medi- percent of those receiving welfare will The PRESIDING OFFICER. There care. Should we apply a Band-Aid? have to work. are 26 minutes on the minority side Sometimes a Band-Aid can work per- The only long-term solution to wel- and 30 minutes on the majority side. fectly well for short periods of time. fare is work. This reconciliation bill Mr. DORGAN. I defer to the Senator But the question is whether or not we recognizes this basic commonsense from Tennessee. should apply that Band-Aid or do some- fact. Mr. THOMPSON. Mr. President, I thing more serious for the future. Al- I am especially pleased by some of thank the Senator from Michigan. I though, surely, we agree that some- the improvements we were able to also am strongly in support of his thing must be done. make during floor consideration of the amendment. I think, as he says, elimi- There is legitimate debate as to what bill. We established, when we were de- nating fraud and abuse from the Medi- extent we should keep centralized here, bating the welfare bill, a rainy-day care system certainly is not, in and of control of the welfare program, or to fund to help cover economic emer- itself, going to cure the problem we are what extent we should give those re- gencies, creating a grant fund of Fed- faced with. But it has to be part of the sponsibilities back, closer to where the eral money that will help tide States package and it represents doing some- problem is. Although, surely, there can over in the event of a recession. thing. I applaud his efforts in that re- be no debate that we indeed have a We also made it easier to track dead- gard. I also applaud the comments just failed welfare system and that some- beat parents. We know that we could made by the distinguished Senator thing must be done. reduce the welfare rolls by up to two- from Ohio and his comments about the There is even a legitimate debate thirds if deadbeat parents would just welfare portion of the reconciliation with regard to a balanced budget. A pay their child support. Years ago, I package. while back, some were thinking maybe was a prosecutor in Greene County, Mr. President, I speak from a little we did not really need one. Apparently, Ohio, and I learned then firsthand how bit different perspective than many of now we are all in agreement. We can difficult it can be to track down these those who have spoken on the rec- debate those priorities, but, surely, we deadbeat parents. You get banking in- onciliation package. I am a new Mem- are all in agreement that we cannot formation about them on a yearly ber to this body. I have not run for continue down the road we are travel- basis, you find out their assets, find elected office before. I ran for the U.S. ing on now, and that the next genera- out their location, just in time to dis- Senate. I decided to run for this body tion does not deserve it. cover they vanished once again. because I felt—as I think a lot of other We can debate tax cuts. We can de- This bill would provide this vital people in this country feel today—that bate the effects of those tax cuts. But, tracking information on a quarterly our country is at a crossroads, that our apparently, we even agree across party basis, once every 3 months, not once a chickens have come home to roost, and lines and with the White House with year. It will be a big plus for our efforts it is time to make some strong deci- regard to the need for tax cuts—the to track down the deadbeats and, thus, sions, and they are going to have to be President having acknowledged that reduce welfare costs and, perhaps most made by people of courage and convic- tax cuts are indeed needed. important of all, we will give States tion. I felt that I could play a small So these are legitimate items of de- credit for helping people avoid falling part in making the difference, in help- bate, and I have been looking forward into the welfare trap. ing make that happen. to a discussion of those issues. We are We have found that helping people It is all coming down now to these in the midst of it now. I think the dis- before they get on welfare through job last few days, and that opportunity is cussion tonight has been good. I must training, job search assistance, and going to be given to me, and it is going say that, throughout the day, it has similar measures is a cheaper and more to be given to everybody in this body. not always reached a level that I would effective way to help them than simply Everything we have done in the last 10 like to see reached in this Chamber. We waiting for them to fall off the eco- days has led up to this time, has led up have seen some mean-spiritedness, and nomic cliff and become full-fledged to this day of judgment. This is a day we have seen some calls to fear. We welfare clients. of judgment for ourselves as individ- have seen appeals to envy and appeals In conclusion, Mr. President, I uals. Some would say it is for our to greed. One Member, today, sug- strongly support the idea that we have party, but it is more importantly for us gested that those who espouse our phi- to make welfare recipients work, but as a body and us as a nation. I think losophy should be ashamed of our- we need to make sure that meeting the those difficult choices have to be made. selves. Another Member today, on the work requirement does not become an We are talking essentially here about other side, said that apparently the end in and of itself. The goal, after all, change, Mr. President—change from only elderly people we know are those is to help people avoid getting caught the way that we have done things in who live in Beverly Hills, which would in the welfare trap in the first place. the past. Change is always somewhat come as a real shock to my mama in This bill gives States credit toward the painful. Change is never easy, but Franklin, TN. But that was said today. work requirements for the efforts they change we must have. It has been implied that those on the make to help people stay off welfare. It There are legitimate issues to be de- other side of the aisle are the only ones will help keep States focused on the bated and discussed, without question. who have any concern, any care, any real problem: Making sure fewer and I think it is quite clear that there are compassion because, indeed, they are S 15660 CONGRESSIONAL RECORD — SENATE October 25, 1995 the ones who are willing to send out lowest savings rate in the industri- er retirees. Everyone acknowledges more dollars from Washington to solve alized world. We have one of the lowest that further changes in Medicare will those problems, as they have solved investment rates. We have a growth undoubtedly need to be made at that them in times past. rate now that is about half of what it time. It is a different situation en- Mr. President, it has come now to a should be, about half of what it nor- tirely. To meet it on an equilibrium is time where we must put partisanship mally is coming out of a recession. what we are trying to do, or not to aside. We can have legitimate debate That has resulted in leaving a legacy meet it already $300 billion in arrears. on legitimate issues. I think the time to those who come after us in a few My time is running out. I want to ad- is well past when we should be attack- short years of even higher and higher dress the tax component that we have ing other people’s motivations as we payroll taxes, of even higher interest heard so much about. The claim, of reach to solve these problems, because rates, of not being able to compete in course, that the problem here really is some of us must take note of the fact the international marketplace, and de- that we want tax cuts for those who do that some of the ones arguing and pending more and more on foreign dol- not need them, and, therefore, the Med- screaming so loudly about these lars to subsidize our debt. That is what icare problem would not be as big, I changes being made have been here for these miscalculations have wrought. can only hope the Washington Post— some time and have witnessed this leg- Yet, from everybody in this body, on every knowledgeable observer, Mr. islation that has come out of this body both sides of the aisle, all you hear President, and traditionally Demo- and the other body, which has contrib- talk about is the ‘‘working person,’’ or cratic, have basically made the same uted to the problem over the last 40 the ‘‘working family.’’ Everybody is statement. The Washington Post on years—much more than it has contrib- looking out for the working family. Ev- September 25, 1995, said, ‘‘The Demo- uted to the solution, it has contributed erybody is taking care of those work- crats have fabricated the Medicare tax to the policy of neglect and one that ers, and talking about the people in the cut connection because it is useful po- has, in every respect, failed. It has op- upper income levels as if they were litically.’’ erated under false assumptions and born that way and none of them ever Mr. President, this business about false policies that must now be cor- worked. We know who we are talking tax cuts for those who do not really rected. It is on our watch now—those about. need them—I find it interesting, kind who are coming in and who have been What have we done for the working of parenthetically, and this is histori- here a while. It is on our watch now, family? Those are the folks who put me cally espoused by those who want high- and we have to do something about where I am standing here today. Those er and higher taxes. We just had the what has been going on here for the are the folks that elected most of us in largest tax increase in the history of last 40 years. this body. We ought to be looking out the country and now that is supposed We have a lot of talk about the blame for them. But have we been doing that? to be locked in and not touched. and partisanship on this side of the Do our actions belie the words ‘‘look- We meet every year, practically, in aisle and the other side of the aisle. I ing out for the working family’’? We this body, and decide who does need it, suggest that there is enough blame to have seen income levels stagnate, and who deserves it. This group this year go around, Mr. President. But we are in looking out for the working family deserves a tax break. This group this now cleaning up after the act of the we have seen among young working other year does not deserve a tax last few decades that was based on the people actually income levels decline break. So we have a tax bill. We had a proposition that we can eradicate wel- in this country. tax bill in 1969, in 1971, 1976, 1978, 1980, fare in this country, that we can eradi- Among working people, we have seen 1981, 1982, 1984, 1986, 1990, 1993—major cate poverty by spending more dollars greater and greater tax burdens laid tax bills. That does not include the on it. We spent $5 trillion and got upon them, up to 220 percent. The Sen- miscellaneous tax bills. And every about the same level of poverty, along ator from Ohio a minute ago was ex- time, we in this body decide who is de- with a lot of other socially undesirable actly right. The very people who bene- serving and who is not—passing judg- results, which we surely must all agree fit from this $500-per-child tax credit— ment on our fellow citizens as to whose on. that is what we have been doing for the money we ought to take and who we In 1965, the Ways and Means Commit- working family. I can hear working ought to give a little back to, continu- tee estimated that the hospital insur- folks all across America saying, ously focusing on the ‘‘who,’’ the ance part A Medicare would cost $9 bil- ‘‘Please don’t help us out anymore. We ‘‘who’’—not the what. lion to finance by 1990. In 1990, hospital can’t stand it.’’ In other words, who is going to be insurance actually cost $67 billion. What is the solution to all of this? hit? Continuing to focus on how to di- That is quite a bit of disparity, even by We have seen the President’s first vide up the pie, not focusing on policies congressional standards. Medicaid was budget which gave $200 billion deficits as to how to make the pie bigger. intended to cost a billion dollars annu- as far as the eye could see. Nobody My time, I am sure, is close to being ally. Expenditures ballooned to $76 bil- took it seriously, and it did not get one expired, so I will address this in a little lion in 1992. In 1995, it went to $89 bil- vote in this Chamber. lion. That is just the Federal Govern- We saw the President’s second so- bit more detail at a later time. ment part alone. The States contrib- called budget that created $245 billion In conclusion, I urge that we get uted $67 billion, in addition to that. out of thin air by changing some as- down to serious business, that we put False assumptions, which led to bad sumptions. Nobody is taking that seri- the details of this aside. It is painful. policies, which basically said, let us ously either. Apparently it did not get There are things in this bill of this put this down and get to the next elec- one vote in this Chamber. magnitude that are going to pain us in tion and get an issue for the next elec- Apparently, the idea is not to come various areas. tion and on down as far as we can carry forth with any constructive idea at all, The bottom-line question is whether it, election after election, and let not to help contribute to the solution, or not we will get this fiscal house in somebody else take care of the con- but lay the wood on those who are try- order. We take the first step, which is sequences. Well, we are now taking ing to solve the problem, and to keep only a first step. If we do everything care of the consequences, we are taking on taxing and keep on spending. we are talking about and go through care of those estimates that turned out With regard to the Medicare solution, all the pain, this is just the first step. to be so wrong. my friends on the other side are cor- We will have to continue to do it year What has that wrought? It is cer- rect in claiming that their $90 billion after year after year. I suggest we get tainly more than an academic exercise. solution would keep the Medicare trust used to it and get on with it. It has wrought a Medicare trust fund fund solvent until 2006, but in 2010, the Mr. EXON. Mr. President, how much that is virtually bankrupt, a welfare last year the Republicans would keep time remains? system that is morally bankrupt; it the trust fund in the black, the Demo- The PRESIDING OFFICER. The Sen- has wrought a fiscal situation that is crats would leave it in the red. ator has 26 minutes 50 seconds, and the going to bankrupt the next generation That date is important, because 2010 other side has 15 minutes. if we do not do something about it. It is the year the human wave of baby Mr. EXON. Mr. President, in order of has led us to a point where we have the boomers really hits—those baby boom- their recognition by the Chair in this October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15661 order, I wish to allocate the time re- Tegucigalpa because the mail service is ten in this. There are no hearings, no- maining with 8 minutes to the Senator better? Krakow, because they have bet- body knows what is there, really. I from North Dakota, followed by 10 ter roads? Budapest, because they have mean, it is a real a slap in the face for minutes to the Senator from Illinois, a better telephone system? I do not family farmers. This will cut farm in- and then 5 minutes to the Senator from think so. come in North Dakota by 25 percent. New Mexico. I yield myself 3 minutes The fact is we ought to talk about The first time in history they throw a at this time. what is right in this country for a farm bill in a reconciliation bill —first All day long, Mr. President, we have while. Some of the things that are time. had Republicans beating up on the right in this country are now to be What else is here? Oh, a note to fami- President of the United States. I sim- taken apart by 1,950 pages of legisla- lies in middle-income circumstances ply say that today the President an- tion on which there has been no hear- that we want to make it tougher for nounced that the year-end budget defi- ings, which we received yesterday you to send your kids to college be- cit was 160-some billions of dollars. afternoon about 4 o’clock, and on cause we cannot afford student finan- That is the lowest deficit we have had which we now have 10 hours of debate cial aid. So we tell the old folks we for a long, long time in the United left. cannot afford Medicare. We can afford States of America. It is a fairly disappointing thing to a tax cut for the wealthy; cannot afford I simply say to those who have been watch here in the Senate today. This Medicare. We cannot afford student aid in this body now not a full year, none 1,950 pages contains substantial policy for middle-income families whose kids of them can hardly take any credit for changes—Medicare especially. Medi- are about to go off to college, but we the deficit going down dramatically care matters to a lot of senior citizens. can afford a tax cut for the affluent. under the leadership of the President of We offered an amendment today about We cannot afford Head Start for 55,000 the United States. 8 hours ago. It is very simple. It does kids in the appropriations bill, but we While we all tend to beat up on the not take 10 staff people to explain it to can afford a tax cut for the most afflu- President of the United States once in anybody here. It is not rocket science. ent people in the country. a while, I think it is well to note that It is very simple. It says those who pro- And people over there say, ‘‘You are under his leadership and under his di- pose to reduce the amount needed for being too sharp in your criticism. Class rection, under his determination, and Medicare by $270 billion—and that is warfare.’’ You bet it is class warfare. It in the policies that he has fostered, he what the proposal is—$270 billion less is all here, 1,950 pages of class warfare, has put his political muscles where his than is needed to fund Medicare in the in this bill. And do not take it from mouth is, and the deficit has come next years, we say to those who want me, take it from your colleague, Sen- down dramatically. to do it, look, you also want to give a ator SPECTER, who said it on the floor I simply say that the last time we tax cut. We would like you to modify yesterday. It took a little courage for had a deficit this low was way back in the tax cut and not provide tax relief him to say it, and I admire him for say- 1989 at $153 billion. The intervening to the upper income Americans, and ing it. years it has been $221 billion, $270 bil- use the savings from that limitation to . . . the pain of the spending cuts goes to lion, $290 billion, $255 billion, $203 bil- reduce the hit on Medicare so that we the elderly, the young, and the infirm while lion, and so forth. are reducing Medicare by about the $89 allowing tax cuts for corporate America and I simply say, Mr. President, that billion that the trustees say are nec- those in higher brackets. once again the President of the United essary to make it solvent. You know what he said yesterday, States should be saluted for at least Shorthand—reduce the cut on Medi- and in your secret moments you know bringing the deficit down into the $160- care to about $89 billion. That is all what he said was right. He said that if billion range. I want to get that for the you need to cut in Medicare to make it it were a secret ballot, 20 of you on the record because there have been so solvent, and get the money for that by other side of the aisle would vote many brick bats thrown at the Presi- eliminating the tax cut for the affluent against this because you know it is the dent of the United States today. Americans. wrong priorities. I yield the floor. Very simple. It does not take 8 hours We have spent 8 hours and have not Mr. DORGAN. Mr. President, I have to figure out what you will do about had a vote. We have several more peo- listened in recent hours to discussions this. We do not need people sitting ple who want to speak to the amend- by people who talk about what has around with fingernail files and clip- ment on Medicaid fraud. I compliment been going on around here for the past pers and just ruminating about the the Senator for offering it. I support it 40 years in some disappointing way. world. and think we ought to accept it in 4 Let me put in a good word for what has We have 20 hours on this bill. We of- minutes. But instead, we will take 2 been going on in this country for the fered this amendment 8 hours ago. Do hours on this, I suppose, because the past 40 years. Members know what we are talking other side does not want to vote on an I wonder how many people think that about now? We are talking about an issue that deals with hundreds of bil- somebody would like to live elsewhere? amendment on Medicare fraud. This lions of dollars of Medicare for the el- Do you think that we have not pro- amendment ought to be accepted in a derly juxtaposed against tax cuts for gressed in this country in 40 years? Do nanosecond. Want to talk about this some of the most affluent Americans. you think Medicare does not matter to forever? God bless you, come and get I know there has been a lot of non- people? Do you think things are not time next week and talk to the whole sense on this floor these days, but I better for a lot of Americans than they world for 40 hours until you are blue. just want one person to bring a chart used to be? Do you think in this cen- This amendment is fine. It is not con- to the floor that tells me this statistic tury the fact that we decided to pro- troversial. Why are they talking about is wrong: on average, the 51 percent of vide electricity to the farms, that it? Why are they eating up time on this American families with incomes under somehow that was not relevant? Cre- clock? Because they do not want to $30,000 get a tax hike in these 2,000 ated a Social Security system; that did talk about our amendment. They cer- pages. That is a fact. It comes from the not matter? Marshaled the will and the tainly do not want to vote on our Joint Tax Committee. We do not run strength to beat back the forces of fas- amendment. And it is not just this that. Half of the American families, on cism and Nazism? Survived the Depres- amendment. There are others exactly average, get a tax hike. Guess which sion and created a period post-Second like it. half—the top half? Oh, no. The bottom World War of unprecedented growth We have family farmers out there half, the very folks the people who are and opportunities? who know that the farm bill is in this pushing this say they want to help. It I guess it is fine to talk about what piece of—reconciliation, this reconcili- is a curious way to help people, in my has been going on the last 40 years. I ation bill. This budget bill has the farm judgment, with a tax hike. happen to think this is a pretty good bill in it. Who gets the benefit? For everybody place. I do not see people rushing to We are supposed to write a farm bill that finds a loaf someplace, somebody leave. If they go, I do not know where this year. We did not. So what do they else is getting it buttered. So who gets they would go. Would they go to do, they put whatever they have writ- their bread buttered here? The top 1 S 15662 CONGRESSIONAL RECORD — SENATE October 25, 1995 percent, of course—big tax cuts. I want changes can open up opportunity, and Federal policies is not just about mak- somebody to come to the floor in the help make this an America that makes ing the numbers line up. The reason we next day or so, just to tell me this use of all of the talents of all of its peo- are want to deal with the deficit prob- chart is wrong and tell me how it is ple, which benefits us all. The right lem, the reason the right kinds of wrong. You know it is right. Senator kind of changes can help create a cli- changes are so important, is what they SPECTER knew it was right yesterday mate that will help Americans provide will mean to the American people, to when he spoke. And you can do all the for their families and give them what the kind of opportunities our children high-wire acts and you can do all the we have had—the opportunity to live will enjoy, and to our collective future half gainers and all the gyrations you better than our parents did. as a nation. Tragically, this reconcili- want, build all the word castles in the There is no argument but that ation bill does not move us toward sky forever, and it is not going to change is needed. I strongly agree with these goals. It does not pursue the change the central facts. the statement made in a letter written right changes. It is contentious and Old folks are going to pay more and by the Competitiveness Policy Council controversial precisely because it is get less health care. They are going to on October 12 when the council issued shortsighted. We currently enjoy solid pay more for it and get less. Family its report entitled ‘‘Lifting All Boats— economic growth and low unemploy- farmers get the short end of the stick. Increasing the Payoff from Private In- ment. Yet Americans are increasingly Middle-income families are told college vestment in the U.S. Economy.’’ The anxious about the future. education is not so important for your cover letter, talking about the report’s More and more Americans worry kids. And young kids are told edu- conclusions, stated: ‘‘many of the Fed- about whether they will be restruc- cation is not a high priority for you— eral laws and regulations that influ- tured out of their jobs. Americans en- whether it is Head Start and dozens of ence private investment decisions were tering the work force worry about other programs. developed before World War II, and are whether there are enough good jobs out So I just ask people around here, out of sync with current economic and there for them to find. And most Amer- when are we going to vote on some- financial market conditions.’’ That is icans increasingly worry about being thing we offered 8 hours ago? A simple exactly right! priced out of the American dream. proposition. I do not have to read it Another of the council’s recently is- Unfortunately, there is substantial again. Everybody in here understands sued major reports, entitled ‘‘Saving cause for this anxiety and this worry. it and everybody here understands why More and Investing Better—A Strategy All too many Americans have been re- we are not voting on it. We are going for Securing Prosperity’’ makes it very structured into lower paying jobs. to have 40 or 50 votes, I suppose, on this clear why we must change Federal Eighty percent of Americans are not bill. But we are draining off all of this budget and tax policies, and other Fed- seeing any real increase in their pay. debate time on a noncontroversial eral policies. That report found, among Yet between 1989 and 1990: issue. I understand why, but it is not other things, that: right. More Americans are employed, yet they The average price of a home in- The rules provide 20 hours on this are working longer hours and for less pay; creased from about $76,000 to almost bill. We have limited time to deal with Productivity growth has improved since $150,000, an increase of almost 100 per- things that literally affect people’s 1990, yet it has not translated into higher cent; lives more than almost any measure in compensation for workers; The average price of a car went from the last 30, 40 years. And we are told we * * * public dissaving has been reduced by about $7,000 to $16,000, an increase of 2 percent of GDP since 1992 through cuts in just cannot vote on these issues up or the Federal deficit, [yet] the net national over 125 percent, and the number of down. We want to go talk about Medi- savings rate continues to weeks an American had to work to pay care fraud. fall * * * primarily due to the downward for the average car increased from I see Senators on the floor who have trend in household saving, as Americans cur- about 18 weeks to over 24 weeks, an in- been working on this for a long while, rently consume 97 percent of their household crease of about one-third; and I commend them. I have worked on income; * * * private investment is growing yet The cost of a year’s tuition at a pub- it. But I tell you, our constituents licly supported college increased from would much sooner understand how the stock of existing plant and equipment is flat; and $635 to $1,454, an increase of almost 130 this bill affects their lives in a real way *** improvements in product quality and percent, and a year’s tuition at a pri- than deal with this noncontroversial delivery, lower wages, corporate restructur- vate college increased from an average amendment, an amendment we should ing, the depreciating of the dollar and gov- of $3,498 to $8,772, an increase of 150 per- have accepted 2 hours ago. ernment support have helped American cent; and I yield the floor. goods and services gain a greater share of The PRESIDING OFFICER. The time world markets, yet the trade deficit is reach- Health care costs increased at close of the Senator has expired. The Sen- ing historic highs. to or at double digit rates each year. ator from Illinois is recognized. The council set out three goals— We have a responsibility to do what Ms. MOSELEY-BRAUN. Mr. Presi- goals that I believe make a great deal we can to help address the causes of dent, I commend my colleague from of sense—to deal with these and other that anxiety. We have a responsibility North Dakota for a brilliant state- problems raised by its reports: to help ensure that the opportunity to ment. He has such a way with words, First, doubling productivity growth achieve the American dream is open to and I congratulate him for putting the to at least 2 per cent per year; every American—and that the dream is issue in context. Second, achieving 3 percent annual not priced out of reach for many Amer- Mr. President, at the outset, I want GDP growth, in order to reemploy icans. We have a responsibility to en- to make it clear that I am one Senator workers made redundant through pro- sure that Government tax, spending, who believes that major changes are ductivity improvements; and and regulatory policies do not under- critically needed if we are to bring the Third, eliminating our current ac- mine the opportunity for Americans to federal budget back under control. I count deficit, in order to reduce U.S. find a good job, to keep a good job, to also believe that major changes in our reliance on foreign capital, and helping be able to provide for their families, Tax Code are necessary to help gen- ensure that the other goals can be sus- and to help their children get ready to erate new economic growth and to cre- tained over the long run. succeed in an ever more competitive ate new jobs. I think these are goals this Congress world economy. We have a responsibil- I do not think any of us should fear must pursue, both through the Tax ity to adopt policies that encourage, change. Indeed, change is critically im- Code through Federal spending deci- rather than discourage, the creation of portant if we are to succeed in meeting sions, and through the other actions of the new good jobs we so greatly need, the challenges the future holds for us, the Federal Government. One critical and the kind of solid, sustainable eco- for our children, and for future genera- question the Senate should be asking is nomic growth on which our individual tions. The right kinds of changes can whether this reconciliation bill moves and collective futures so fundamen- help create a climate that will produce us toward these goals or not. After all, tally depend. We have a duty to ensure the new jobs and economic growth that restoring Federal budget discipline is that Government policies help, rather all of us want to see. The right kind of not just an accounting game. Changing than hinder, Americans who want October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15663 nothing more—and nothing less—than supposed to lower deficits actually in- families won’t see much net relief, be- what we have all had: the opportunity creases them by $93 billion over the cause once the EITC cuts are fully to live better than our parents did. next 7 years in order to help finance phased in, they will lose, on average, We have to meet these responsibil- tax cuts? $457 in annual tax relief they are now ities based on as complete an under- The reason greater fiscal discipline is receiving. For many of them, therefore, standing as possible of the way our important is that we owe more to our the effect of the tax provisions in this economy works now, and the way it is children than a legacy of debt. How is bill is simply to move their tax bene- likely to work in the future, and not that consistent with giving ourselves a fits from one line of their tax returns simply on the way it may have worked tax cut now, thereby creating more to another line. in the past. We have to meet these re- debt for them to repay? And even middle income Americans sponsibilities without falling into the The tax changes now contained in will not receive much relief from the trap of doing the tax and budgetary this bill are very substantial in com- tax provisions in this reconciliation policy equivalents of fighting the last parison to the deficits we face. They bill. Both the Joint Tax Committee war, instead of preparing for the next amount to 15 percent of the $1.6 trillion and the Treasury Department agree one. in deficits forecast for the next 7 years that Americans with annual incomes of Yet, that seems to be exactly what if we do not act to put our fiscal house $30,000 or less, which is over half of all this reconciliation bill is all about. It in order. And they are an even larger Americans, will see no net tax relief at does not meet our responsibilities to percentage—38 percent—of the $638 bil- all from this bill. our children and to our future. Its rem- lion in deficits forecast for that period In the health care area, the bill calls edies are based on a foundation of in the budget resolution we are now for creating medical savings accounts, myths, and a time that has long since working under. That is why the tax cut providing more favorable tax treat- passed, instead of the economic reali- provisions of this bill have such an im- ment for long-term care insurance, and ties that the American people live pact on the deficit reduction objective a number of other changes. The benefit every single day. that both Democrats and Republicans to American taxpayers of these There is no question that our budg- want to achieve. changes amounts to approximately $12 etary situation has changed dramati- A tax cut right now is inconsistent billion. However, the bill also makes cally since the Federal Government with achieving real deficit reduction. changes in Medicare and Medicaid that last balanced its budget in 1969. In 1969, And it is important to keep in mind will take $452 billion out of those two the national debt was $365 billion; now that, even if the Senate does not act on programs over the next 7 years. The it is almost $4.9 trillion. In 1969, inter- these tax proposals, we would not be changes include doubling the Medicare est on the national debt cost only $12.7 choosing to move toward a balanced part B premium, and the Medicare part billion; this year, interest alone will budget by increasing the burden on B deductible. For most Medicare and consume over $230 billion—over $40 bil- American taxpayers. Whether these tax virtually all Medicaid recipients, the lion more than total Federal spending proposals become law or not, Federal tax relief they will receive under this in 1969. And the future holds even revenues are not growing faster than bill, therefore, will probably not come greater problems. Last year, I served our economy. Federal taxes consumed close to covering their increased health on the Bipartisan Commission on Enti- 19 percent of the U.S. Gross Domestic care costs. And if, as many believe, one tlement and Tax Reform. Finding No. 1 Product (GDP) in 1994. That is 1 per- result of these Medicare and Medicaid of the Commission’s interim report to centage point less of GDP than Federal changes is to put additional upward the President made it abundantly clear revenues accounted for a quarter of a pressure on health insurance costs, what will happen if we do not address century earlier, when the Federal Gov- than it is not just the elderly, the dis- the critical budget problems facing ernment last balanced its budget, back abled, and the poor who will see their this country. The chart accompanying in 1969, by the way. tax relief overwhelmed by increased that finding was headlined, ‘‘Current The rationale for tax cuts is that health care costs, millions of other Trends Are Not Sustainable’’—a very they will help promote savings, eco- Americans who are not currently using understated way of pointing to the nomic growth, and the creation of the these two health care programs will very real crisis we face. If we do noth- kind of new, well-paying jobs Ameri- also face that same reality. ing, by the year 2012, entitlement cans need. And it is true that $245 bil- Cutting taxes is the oldest political spending and interest expense consume lion in tax cuts sounds like a number trump card, and it has not lost its every single dollar of Federal Revenue. large enough to provide a substantial power. And tax cuts are easy to under- If we do nothing, by 2030, Federal out- opportunity for those kinds of changes stand. The temptation to promise the lays could consume 37 percent of the to happen. When compared to Federal proverbial ‘‘chicken in every pot,’’ is entire U.S. economy, up from 22 per- revenues that will total more than too great for some to resist. But impos- cent today. If we do nothing, by 2030, $11.3 trillion over the next 7 years, ing new costs on American families just paying the interest on the na- however, that figure shrinks dramati- while only partly offsetting these new tional debt will take over $1 of every cally. It amounts to a tax cut of only costs with tax cuts does not represent $10 our economy produces. about 2.1 percent. And, according to real tax relief; instead, it is, at best, no The Commission’s reports are com- the Joint Tax Committee, it amounts more than a cynical shell game. pelling evidence that we must act to to a cut in average effective tax rates And the proposed tax cuts are far get the Federal Government’s fiscal for American taxpayers of only eight- from the only problems with this bill. house in order. They make it clear that tenths of 1 percent. The bill makes student loans more ex- we cannot afford to act based on any Moreover, even this tax reduction is pensive, adding an 85 basis point fee to political party’s or interest group’s illusory for many Americans. The rec- the cost of every loan, most, if not all, budgetary mythology. They reinforced onciliation bill, to cite one example, of which will be passed on to students. my conviction that an amendment to creates a student loan interest tax It adds 100 basis points, or one full per- our Constitution is good public policy. credit, an idea I support. This tax cred- centage point, to the cost of what are That same objective—a balanced it puts approximately $1.5 billion in the called PLUS loans, which could add up budget, restoration of fiscal dis- hands of American taxpayers to help to $5,000 in student loan costs for cipline—is the stated objective of the pay student loan expenses. However, American families who use that stu- reconciliation bill we are now consider- the reconciliation also contains provi- dent loan program. It ends the interest ing. But what kind of message is being sions designed to save $10.8 billion over free, 6-month grace period which is de- sent, what are the American people that same 7-year period by making stu- signed to provide an opportunity for really being told, if the same bill that dent loans more expensive. On a net students to find a job after they com- takes $893 billion out of the spending basis, therefore, families with students plete their education, which adds an- side of the budget over the next 7 years are likely to be worse off, not better other $700 to $2,500 in costs to student also takes $245 billion out of the reve- off. loans. And it actually increases, rather nue side of the budget. What kind of The bill also creates a $500 per child than decreases, the redtape and admin- message is being sent if a bill that is tax credit for families. But many EITC istrative costs associated with student S 15664 CONGRESSIONAL RECORD — SENATE October 25, 1995 loans, by backing away from direct behind those numbers are also consid- pitals to raise their fees for private pa- loans in favor of using the banks to ered, the argument collapses. tients by at least $90 billion. make student loans guaranteed by the The truth is that this bill calls for re- Under this bill, Americans will get Federal Government. ductions in Medicare of $270 billion— $245 billion in tax cuts, but if even half The net effect of all of these cuts is three times what is needed to protect of the $452 billion in Medicare and Med- to price college out of reach for more the trust fund. And the truth is that icaid reductions show up in the budgets Americans. A study by two higher edu- the aggregate spending levels are not of individual Americans, then Ameri- cation economists—Michael McPher- the whole story, but only the beginning cans are not better off at all. They de- son of Williams College and Morton of the story. There are two factors serve more than budgetary shell Shapiro of the University of Southern driving up the cost of Medicare and games. They deserve real reform—we California concluded that each $250 in- Medicaid, and health care costs gen- need real reform—but all this bill pro- crease in the cost of college will result erally: demographic change, and cost vides is the rhetoric of reform, instead in a 1-percent drop in the number of inflation. The simple fact is that the of the reality. The only reality it will low-income students enrolling in col- number of older Americans is increas- deliver is less care and higher costs for lege. ing far more rapidly than the popu- every American. It takes a meat ax ap- And low-income students will not be lation generally, and that the increases proach to health care system reform the only students affected by these in the number of elderly Americans when a scalpel would do a better job. changes in student loans. Middle class will accelerate even further early in I have focused a lot on the impact American families with students in the next century when the ‘‘baby this reconciliation bill will have on all college or approaching college-age will boomers’’ begin to hit retirement age. Americans, Mr. President, but I cannot also be affected—all too many people This fact has profound implications for conclude without expressing my out- will be unable to meet the new, higher Medicare, and also for Medicaid—be- rage and my dismay on how it treats costs, which means that their children cause spending for older Americans the poorest Americans. The proponents will have their opportunities dimin- takes 70 cents of every dollar spent on of this bill say it reforms welfare, that ished by this bill, instead of expanded. that program. Both Medicare and Med- it ‘‘reforms’’ the EITC, that it ‘‘re- We want a brighter future for our chil- icaid must increase substantially just forms’’ health care for the poor, that it dren, but if we are simply moving costs to keep pace with the increasing num- ‘‘reforms’’ nutrition programs, and from the Federal balance sheet to the ber of Americans using those programs. that it, along with the appropriations budgets of American families, we Health care cost inflation is a per- bills that encompass the rest of the aren’t helping them at all. That kind of haps even more important factor. Med- program advocated by the other side of approach does not meet our respon- icare and Medicaid inflation rates have the aisle reform the rest of the social sibility to American families or to our been at double digit levels, or close to safety net. But these reforms are even children, and it does not meet our obli- them, for a long time, and it is true less real than the health care reforms. gation to the future. that we have to get that inflation Instead, these proposals represent a These kinds of changes may produce under control. However, this bill has no shredding of the social safety net. This budget savings in the short run, but real plan for reducing health care infla- reconciliation bill walks away from the they are not in the long-term interests tion. Instead, its impact will be to re- working poor. It walks away from the of our country; this is not the kind of duce the quality of care and the health welfare recipients who want to work. It legacy we want to leave our children. care choices available to millions of walks away from poor children who After all, our people are the most im- Americans. Under this bill hospitals want the opportunity to escape their portant asset our country has. If we are and other health care providers will see poverty. to compete successfully in the future, over $200 billion less in reimbursement It walks away from opportunity, if we are to generate the kind of eco- for services provided to Medicare pa- from inclusion, and from making use of nomic growth we need, and if we want tients, which will literally drive some all of the talents of all of our people. It expanded, rather than diminished, op- of them into bankruptcy, and cause walks away from the problems of our portunities for our children—and their others to reject Medicare patients; cities, and of economically distressed children—we simply cannot skimp on Medicare premiums will double, as will rural areas. essential investments in education. deductibles; the two-thirds of all nurs- It calls for further reductions in wel- We all know that education is the ing home residents who depend on Med- fare, even though welfare benefits per one of the most important deter- icaid will be thrown into jeopardy; and beneficiary have been declining for minants of the amount our children almost 9 million people, including al- years. It fails to recognize the real will earn in their lifetimes. In this in- most 41⁄2 million children, could be problems involving child care, and ac- creasingly technological age, education thrown off the Medicaid rolls. cess to jobs, and job training that have is ever more important. How, there- Again, what seems to be happening is to be addressed in order to make real fore, does it make budget sense, or any that costs are not being eliminated by progress in reducing our welfare rolls other kind of sense, to cut our invest- making the delivery of health care by bringing people into the workforce. ment in education, when one of the top cheaper and more cost-efficient, but by It ignores the fact that two-thirds of purposes of this bill is to improve the simply transferring costs from the Fed- welfare recipients are children. It di- legacy we are leaving our children, and eral budget to the budgets of individual vides us from one another, viewing the to create a brighter future for our chil- Americans. Medicare beneficiaries will poor as a cost to be cut, instead of as dren. not only see higher costs from the Med- an asset to be developed. I could go on, The bill’s approach to health care is icare Program directly, but higher pri- and on, and on. as shortsighted and misguided as its vate insurance costs, as so-called Considering the overall impact of the approach to education. Advocates of Medigap insurance, which involves bill, one has to ask the question, the bill’s Medicare and Medicaid provi- higher administrative costs and more ‘‘What do the supporters of this bill sion argue that the reconciliation bill inefficiency than Medicare—becomes have against poor people?’’ After all, does not ‘‘cut’’ either program; what is more expensive due to this bill. Medic- Americans who make less than $20,000 actually going on is simply a reduction aid recipients will also face higher get a tax increase, instead of a tax cut, in the rate of growth of these two pro- costs—the average cost of a year in a under this bill. Americans who make grams from their current double digit nursing home is $38,000—for less health less than $30,000 get no tax cut at all. increases to a bit more than 4 percent care. And every American will likely And the poorest 20 percent of American annually. They also argue that action see higher health insurance costs, as families have to bear half of the total is required in order to keep the Medi- hospitals push costs formerly paid by cuts in Federal spending. This rec- care trust fund solvent. Medicare and Medicaid over to pri- onciliation bill is so unbalanced that If the only important thing is the vately insured patients. Lewin-VHI, an the distributional impact is—or should narrow budget numbers themselves, independent research firm, found that be —a stunning embarrassment. that argument is correct. If, however, the $452 billion in Medicare and Medic- It is the long term that I believe the economic and health care realities aid changes will force doctors and hos- must guide our deliberations. We must October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15665 deal with Federal budget problems, but tion for that? What is she basing that beneficiary per year. Upper income bene- our objective must be to deal with our on? ficiaries— budget problems in a way that en- Ms. MOSELEY-BRAUN. I am going And this gets to the affluence testing hances our country’s future, and our to have to find the record. But I would that the Senator mentioned. children’s future. A bill that under- be delighted to get back to my col- will pay even more. For some of them, the mines education, that simply transfers league with regard to the effect as to premiums will triple. costs from the Federal Government’s some of the recipients of Medicare. The It is documented. So maybe—— premium will double, and those are the balance sheet to the budgets of Amer- Mr. CHAFEE addressed the Chair. numbers provided for us in committee. ican families, and that needlessly jeop- Mr. DORGAN. Will the Senator yield I would be delighted to get the base in- ardizes, instead of reforming, our to me? health care system, cannot end the formation. I do not have it. Ms. MOSELEY-BRAUN. I yield. anxiety so many Americans are experi- Mr. CHAFEE. I wonder if the Senator The PRESIDING OFFICER (Mr. encing. from Illinois is objecting to the afflu- How can making education more ex- ent testing of the part B premiums. SANTORUM). The Senator from Rhode pensive that is already too expensive Ms. MOSELEY-BRAUN. Objecting to Island controls the time. be in our long-term national interest? the affluent testing? No. I would say to Mr. CHAFEE. It is my time, Mr. How can cutting taxes by $245 billion, my colleague that the point I have President. I believe I am on my time. at a time when we have $4.9 trillion in been trying to make in this statement The PRESIDING OFFICER. The Sen- Federal debt outstanding, and at a today is that we are with this bill in all ator from Rhode Island controls the time when we are experiencing nine- 20 instances robbing Peter to pay Paul, time. figure budget deficits every year, be in taking from one pocket to put in an- Mr. CHAFEE. All right. Now, I would our long-term national interest. And other, and that, therefore, the notion just say this, that those premiums she how does lowering taxes for some that we are just restraining, restoring, is discussing would go up no matter Americans while pushing more health and saving the program becomes illu- which administration and under whose care costs, education costs, and so sory given the overall impact of the program you are talking about. many other costs onto every American changes that are suggested in this rec- Ms. MOSELEY-BRAUN. But that family help them better meet their onciliation bill. does not make my statement in error, own long-term objectives. Finally, how There do have to be changes. That is does it? is walking away from the poor—and the main import of my statement as Mr. CHAFEE. If the premiums are particularly poor children—consistent well. There have to be changes in the going up—and who knows what the with either our own long-term inter- way that this program works. Cer- costs are going to be out there because ests or our own core values. tainly, affluent testing is one. Some we do not set forth a dollar amount, as The answers are, of course, obvious. parts of the affluent testing proposed the distinguished Senator knows. We It cannot, it does not, and it is not. It in the Finance Committee are laudable stay at exactly the same percentage. does not meet the long-term needs of and will help the program overall. But And if health care costs should go American families. It does not prepare the overall impact on the way we down, then the premiums will go down. our Nation or our children to meet the treated the part B premiums will be to If health care costs go up, then the pre- challenges the future holds. It does not increase the cost on senior citizens and miums go up. To blame that on the Re- include the kinds of reforms we need. will double the costs in some instances. publicans and on our Medicare program All this bill offers is diminished oppor- Mr. CHAFEE. Let me just say this. is just a charge that I believe is highly tunities, a loss of competitiveness, and As the Senator knows, we both worked unfair. a continuation of the current anxieties together in the Finance Committee on Ms. MOSELEY-BRAUN. I would like that so plague the American people. the Medicare matters. To say that the to claim my time. When it inevitably fails, its only last- Republicans are doubling the premiums Mr. CHAFEE. I yield back the re- ing result will be to further increase on part B is an inaccurate statement, if mainder of my time. the already pervasive cynicism that so I may say so to the Senator. We main- The PRESIDING OFFICER. The Sen- poisons our public dialog. tain the percentage that an individual ator yields back his time. We can and must do better. We have pays under the part B premium at ex- Who yields time on the amendment? an obligation to our country, to Amer- actly the same amount that is there Ms. MOSELEY-BRAUN addressed the ican families, to our children, and to now, the same amount that was there Chair. their children to enact the kind of re- under a Democratic administration and Mr. ABRAHAM. Mr. President, I be- forms that will help make our individ- under us. It is 31.5 percent. lieve the previous agreement—— ual and collective futures brighter. Now, if the predictions show that the Ms. MOSELEY-BRAUN. Mr. Presi- However, the only way for this Senate costs of the premiums are going up, dent, I have not yet yielded the floor. to do the right thing is to first defeat that has nothing to do with Repub- The PRESIDING OFFICER. The time the wrong one. I therefore urge my col- licans being in charge. That is a fact of of the Senator from Illinois has ex- leagues to join me in opposing S. 1357, costs of health care. But to say it is a pired. Republican fault is a charge that I the Balanced Budget Reconciliation The Senator from Rhode Island think is a very unfortunate one to Act. claimed time under the Republican The PRESIDING OFFICER. The Sen- make. side on the bill and was recognized for ator’s time has expired. I say to the distinguished Senator 5 minutes. He has yielded back his Mr. CHAFEE. Mr. President, I won- from Illinois that what we have done time. der if the distinguished Senator from on the Medicare Program is justified. Who yields time? Illinois would answer a question. Have there been some deductibles in- The PRESIDING OFFICER. The time creased? Yes, there have. But the part Mr. ABRAHAM. Mr. President, just of the Senator from Illinois has ex- B premium remains at exactly the as a point of clarification, I believe the pired. same percentage that exists now. And Senator from Nebraska is not in the Mr. CHAFEE. Maybe I could have 5 if the distinguished Senator from Illi- Chamber now, but he had previously minutes off the bill, if I might. nois objects to the affluence testing, sought and obtained consent for the The PRESIDING OFFICER. Without then she is on a different course than I Senator from New Mexico to proceed at objection, it is so ordered. am and I think most of the American this point. Mr. CHAFEE. Mr. President, the dis- public. The PRESIDING OFFICER. The Sen- tinguished Senator from Illinois is a Ms. MOSELEY-BRAUN. I would like ator from New Mexico is recognized for member of the Finance Committee. So to reclaim my time and to read to the 5 minutes. she is familiar with some of these Senator some numbers: Ms. MOSELEY-BRAUN. Will the Sen- items, obviously. But I heard her say Under this plan, increased premiums alone ator from New Mexico allow me, be- that under the Republican measure the will cost every elderly couple an additional cause I think we got into a parliamen- Medicare part B premiums are going to $2,800 over the next 7 years. By the year 2000, tary pickle here for a second, and I just double. What is her source of informa- premiums will double to more than $1,100 per want 30 seconds. S 15666 CONGRESSIONAL RECORD — SENATE October 25, 1995 Mr. BINGAMAN. I would be glad to taxpayers in my State will in fact see the budget, and at the same time cut yield 30 seconds to the Senator from Il- their taxes rise under this bill accord- taxes for the wealthy. It was the wrong linois. ing to the Joint Tax Committee. thing to do in 1981, and it is the wrong Ms. MOSELEY-BRAUN. I thank the What is most disturbing about this is thing to do today. Senator. that this is happening at a point in Mr. President, if we are going to Again, to Senator CHAFEE, the Office American history where the average promise tax relief, it needs to be equi- of Management called. Part B here American worker is having a tougher table. We must go back to the drawing more than doubled. That is to be found time making ends meet. They are see- board and reverse these EITC reduc- on page 8 of the statement of policy. ing their wages, the real spending tions. And I would like to provide that for the power of their wages decline. Families The Republican tax plan, as it now Senator. I did not misspeak. We may are increasingly finding themselves reads, benefits the wealthy at the ex- have a different interpretation, but the without adequate health care coverage pense of the poor. We would be better statement that I made was factual or pension options. It is a time when off leaving the whole issue of taxes to with regard to the impact on part B the stock market is at new highs, when another day when we can afford it, and premiums. I yield the floor, and I corporate profits have never been high- when it can be done fairly. thank the Senator from New Mexico. er than they are at this time in our his- The PRESIDING OFFICER. The Sen- Mr. BINGAMAN. Mr. President, let tory. ator’s time has expired. me speak for just a few minutes about In fact, talking about the stock mar- The Senator from Michigan. the Republican tax plan, the plan ket and corporate profits, there have Mr. ABRAHAM. Mr. President, at which is before us. It is title XII of the been many times in the last month or this time I would like to yield 10 min- bill. It begins on page 1463 and runs so when I wished I owned some stock. utes of our remaining time to the Sen- through page 1949. In case some of my We own very little stock. And I am ator from Maine, but before I do I just colleagues have not read all aspects of sure there are many working families want to recognize and commend the ef- it, I have not either, but I do think I in this country who look at the rise in forts of the Senator from Maine. understand the main thrust of it. The the stock market and wish they had a It was Senator COHEN who last year main thrust of it is that it does place piece of that pie. But the reality is served as the ranking minority mem- an additional burden on those who are they do not. ber of the Senate Special Committee least able to pay. In doing so, it pro- What we are doing here is the rich on Aging, and it was his staff that pro- vides tax breaks to those who are doing are taking a bigger share of the Na- duced the document which I have read the best in our economy. tion’s economic pie than ever before. from several times tonight pertaining The Joint Committee on Taxation, We are proposing in this bill to reduce to investigations of the kinds of Medi- which has been referred to many times the burden on those who are relatively care fraud and abuse which the amend- here in this debate, has released some well off. ment I have brought this evening tries findings that I think all of us have to Some have recently argued that the to address. It was his fraud and abuse agree are accurate, and those findings $500 child tax credit is more than an legislation, in fact, introduced earlier are that people who earn $30,000 a year adequate offset to those working poor this year, which served as the basis for or less will be shouldering a heavier who will be getting tax increases. This the antifraud and abuse provisions con- tax burden once this bill becomes law. is simply not true. Clearly, a family tained in the legislation before us. His The new data are the result of the ef- has to have substantial enough income earlier legislation had bipartisan sup- fort and the proposal to reduce by $43 on which to pay taxes for a $500 credit port. billion the earned-income tax credit. to make a difference. More than a third Provisions in the pending legislation Mr. President, this chart here, I of the Nation’s children will not bene- are tough. They are comprehensive and think, makes the point about as well as fit at all or will only receive partial they are unprecedented in their effec- anyone could. We have here the people credit from this proposal. If we are se- tiveness. I believe that this is the first who have $10,000 of income or less. rious about giving tax relief to the time health care fraud and abuse provi- Their taxes will be expected by the working poor, then the child tax credit sions have been scored by the Congres- year 2000 to rise 9.6 percent. In the case should be refundable or offset against sional Budget Office as generating sav- of people with $20,000 of income, it is payroll taxes, not just against the in- ings. 2.2. In the case of people with 30,000, it come tax. In fact, according to CBO, these pro- is a smaller percentage. But everyone A working family in my State with visions yield over $4 billion in savings. in that entire range would see their two children and $15,000 adjusted gross So, I want to commend the Senator taxes increased. At the same time, income has no Federal tax liability and from Maine for these efforts. They are those above $30,000 would see a de- thus has no opportunity to receive any productive ones. And I applaud what he crease. benefit from the child tax credit. This has done. And at this time I turn the Mr. President, what we have, which worker, however, has a real increase in floor over to him. is a fairly remarkable result, in my tax burden by the reduction in EITC The PRESIDING OFFICER. The Sen- opinion, is a bill that cuts Federal that helps the family keep working, ator from Maine is recognized for 10 taxes, reduces Federal taxes by $245 bil- not falling back into welfare programs. minutes. lion and at the same time increases But this same worker has payroll taxes Mr. COHEN. I thank my colleague taxes on more than half of all Ameri- of $1,148.00. If the child tax credit were and friend from Michigan. I want to cans who pay tax. an offset against these taxes, then this join in support of the amendment that Let me point to one other chart here might do some good. he has offered to make what I believe which I think makes the point very Mr. President, this Senate has been to be very strong antifraud measures dramatically. here before—in fact, 14 years ago. In even stronger. The Senator from North Dakota ear- 1981, it was the passage of the Kemp- Mr. President, I have listened at lier was saying that the bottom 50 per- Roth bill which was a major cause of length to the debate today, and I think cent of all taxpayers are the ones who the deficit we are now struggling with. the American people are wondering, are going to see their taxes go up. In In 1983, 1985, and at other subsequent why are we here at this point in time my home State—and we have State-by- times, this Congress has quietly un- debating this issue in the fashion that State breakdowns of this—in my home done parts of Kemp-Roth, which cut we are debating it? State of New Mexico, it is not the bot- taxes during a time when the Nation’s We are here because there has been a tom 50 percent who are going to see financial circumstances could not bear lot of politics involved in the entire de- their taxes increased; it is the bottom the pressure. But we have never recov- bate. Ever since the release of the 70 percent. Because we are a low per ered—and that is why the budget bal- trustees’ report on the Medicare trust capita income State, we have a sub- ancing process today is so terribly dif- fund last spring, Republicans have said, stantial number of people who are in ficult. It is very unwise to attempt to ‘‘We have to do something.’’ I recall that income category that puts them cut the programs that we are cutting that Senator DOLE, the majority lead- at $30,000 or less. So 70 percent of the toward the noble cause of balancing er, last spring urged that President October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15667 Clinton try to put together some kind unfortunately, we are in a stage where Sept. 10, 1985: The long term care ombuds- of a bipartisan commission or commit- we are setting the posture for a poten- man program: A decade of service to the in- tee or group of Senators and House tial agreement sometime down the stitutionalized elderly. Members to see if we could not resolve line. Sept. 18, 1985: The rights of America’s in- stitutionalized aged: Lost in confinement. this on a bipartisan basis. But let us not make any mistake about it, we still need to reform the October 1985: Dying with dignity: Difficult There were no takers. There were no times, difficult choices. Medicare system. Part A and part B takers at that time. They simply said October 1, 1984: Discrimination against the there is not a problem. ‘‘There is no have to be reformed if we are going to poor and disabled in nursing homes. problem with Medicare, and you Re- ever stop the growth rate of 10 percent November 1983: Staff data and materials publicans are simply trying to blow it a year, which cannot be sustained related to Medicaid and long term care. out of proportion.’’ Well, there is a under anyone’s calculations without a February 2, 1982: Medicare coverage and re- problem. There is a problem that has major tax increase. And no one on that imbursement of skilled nursing facility serv- to be fixed. side of the aisle is talking about a ices. Let me say very candidly, as we talk major tax increase. March 22, 1982: Long term care for the el- about taxes, that I, for one—I may be a I would like to come back to a sub- derly in Florida. minority of one—do not favor tax cuts ject matter which I think has been ad- March 27, 1982: Medicaid fraud: A case his- at this time. I think that we should be dressed earlier but is of great impor- tory in the failure of state enforcement. tance to me because it deals, not with July 15, 1982: Nursing home survey and cer- balancing the budget, period, at this tification assuring quality and care. time. But I think we have to separate Medicare, but Medicaid. One of the mistakes, I believe, that has been made July 16, 1982: Nursing home inspections: out the issue of the reformation of the New Jersey. Medicare fund itself. in the bill as reported out of the com- December 9, 1981: Oversight of HHS inspec- I compare it to a situation of a home mittee is that we are suddenly waiving tor general’s effort to combat fraud, waste, in Maine, by way of example. We are many of the standards and regulations and abuse. going into the winter season. We have that have been hard fought in the field May 15, 1980: Medicare and Medicaid fraud. a home that needs to be heated. And of nursing home care. October 17, 1979: Special problems in long- there is frost on the walls, and the in- One of the first bills that I intro- term care. side of the walls, not the outside. That duced back in 1973, in December 1973, July 25, 1978: Medicaid anti-fraud pro- is how cold it is. We have a home that was the Nursing Home Patients’ Bill of grams: The role of state fraud control units. is losing heat. We need to get heat into Rights. That came in the wake of a August 11, 1978: Medicare-Medicaid admin- number of congressional investigations istrative and reimbursement reform act. the home to keep people warm. The March 1977: Fraud and abuse in nursing problem is, you have several holes in into absolutely intolerable conditions in nursing homes where patients were homes: Pharmaceutical kickback arrange- the roof, and the windows are broken, ments. tied to their beds or wheelchairs, where and we have an inefficient furnace in June 8, 1977: The national crisis in adult the basement. they were medicated and care homes. Now, there are one or two ways that overmedicated to the point where they June 17, 22, 23, 30 and July 1, 1977: Civil we can keep warm in that home. We were practically zombies, where a Sen- rights of institutionalized people. can try to buy more fuel. We do not ate aging committee called them ware- June 30, 1977: Kickbacks among Medicaid have enough money, so we have to get houses for the dying. providers. a second or third job, assuming you can As a result of the expose of the March 1976: Nursing home care in the Unit- find a second or third job. And so we abuses that were taking place in the ed States: Failure in public policy. June 3, 1976: The tragedy of nursing home have to buy more fuel to put more fuel nursing home industry itself, we were able to, over a period of time, establish fires: The need for a national commitment into the home to keep the frost from for safety. freezing us inside. That is one way of nursing home patients’ rights. Many of them have been put into place by Exec- August 1976: Fraud and abuse among prac- doing it. That way would be to simply titioners participating in the Medicaid pro- increase taxes. If you want the analogy utive order. Finally, under OBRA 87, gram. to be made properly, we just have more the Omnibus Reconciliation Act of September 1976: The tragedy of multiple taxes to keep the system going at a 1987, we finally were able to put into death nursing home fires. The need for a na- rate of 10 percent growth. That is what law specific regulations and standards tional commitment to safety. we have to do, increase the taxes. about how these homes should be run January 1975: Nursing home care in the I have not heard one single person on and maintained. United States: Failure in public policy. the other side call for a 44-percent in- We have, for all practical purposes, February 1975: Nursing home care in the eliminated that under the bill. I hope United States: Failure in public policy. crease in taxes, in the payroll tax of August 1975: Nursing home care in the part A of the Medicare trust fund. So that we can correct that. I believe that we can correct that, and we should cor- United States: Failure in public policy. we know that we would have to get September 1975: Nursing home care in the more fuel oil or get a second or third rect it. But tomorrow we are holding a hear- United States: Failure in public policy. job to buy more fuel oil to put oil in ing in the Aging Committee in which September 26, 1975: Medicare and Medicaid that house. fraud. Or we could make the house more en- we will again discuss the reasons why November 11, 1975: Society’s responsibil- ergy efficient. We could fix the holes in we need a continuation of the Federal ities to the elderly. the roof. We could fix the windows that standards and oversight and enforce- November 13, 1975: Medicare and Medicaid are broken. We could put a new furnace ment of nursing homes. fraud. Let me give you just a couple exam- that is energy efficient in the basement December 5, 1975: Medicare and Medicaid ples. By the way, this is not a new fraud. and conserve energy as opposed to al- issue. December, 1974: Nursing home care in the lowing it to go out through the chim- I ask unanimous consent to have this United States: Failure in public policy—an ney and the holes in the roof and the material printed in the RECORD. introductory report. windows. There being no objection, the mate- December 1974: The litany of nursing home That, basically, is what the Repub- rial was ordered to be printed in the abuses and an examination of the roots and controversy, supporting paper #1. licans have tried to do in terms of RECORD, as follows: slowing down the growth of the Medi- February 11, 1965: Conditions and problems CONGRESSIONAL HEARINGS AND REPORTS in the nation’s nursing homes, part-1. care fund as such to make it more effi- LEADING UP TO THE ENACTMENT OF THE February 15, 1965: Conditions and problems cient, to stop growing at a rate of 10 NURSING HOME REFORM ACT IN 1987 in the nation’s nursing homes, part-2. percent to 6.3 or 6.5. Now, President May 1986: Nursing home care: The unfin- February 17, 1965: Conditions and problems Clinton, to his credit, admitted that we ished agenda—an information paper. in the nation’s nursing homes, part-3. have a problem, and he suggested that May 21, 1986: Nursing home agenda: The unfinished agenda, vol. 1. February 23, 1965: Conditions and problems we slow the growth down to 7.5 percent. in the nation’s nursing homes, part-4. Mr. President, I suggest that there is Feb. 26, 1985: Sustaining quality health care under cost containment. August 9, 1965: Conditions and problems in room for agreement between our two July 1985: America’s elderly at risk. the nation’s nursing homes, part-6. parties, between the President and the July 9, 1985: Health care cost containment: August 13, 1995: Conditions and problems in Senate and the House. And right now, Are America’s aged protected? the nation’s nursing homes, part-7. S 15668 CONGRESSIONAL RECORD — SENATE October 25, 1995 May 5, 1964: Nursing homes and related and smeared with food and body wastes. They are frail and vulnerable. They deserve long term care services, part-1. Some were confined to rooms by greased all the protection the public can provide. May 7, 1964: Nursing homes and related door handles because too few staff were long term care services, part-3. available to supervise. One resident on a liq- [From the New York Times, Oct. 18, 1995] For a listing of Congressional hearings and uid diet choked on a piece of food. reports related to nursing home care since Ritter had been cited for numerous viola- KEEP NURSING HOME STANDARDS 1987 and/or for a listing of state and national tions since 1993, but never really punished. In its ongoing effort to give more power to reports on nursing home care, please contact Thanks to the new federal tools, the health the states, Congress wants to scrap Federal The National Citizens’ Coalition for Nursing department moved swiftly this time. The standards for quality of care in nursing Home Reform. owners have been fined and denied Medicaid homes. Given past abuses that the standards eligibility. Tragically, residents must now were designed to guard against, and the fu- [From the Indianapolis Star, Oct. 10, 1995] move elsewhere because of the facility’s fail- ture need for even more nursing homes, this EXISTING PROTECTIONS ure to correct its problems. is an invitation to trouble. There may well The Republican Congress has taken steps That is how the federal law was designed be room to revise the Federal standards to to eliminate burdensome federal regulations, to work. That is how it is working in Indi- make them simpler and less costly. But with many of which are unnecessary and costly to ana. At this point, it would be a mistake to vast changes occurring in the health-care individuals and businesses. repeal what isn’t broken. system, the need for Federal standards to in- But when it comes to abolishing nursing sure minimal quality is greater than ever. home regulations, which protect the health [From USA Today, Sept. 27, 1995] It was only about 20 years ago that a series and safety of elderly citizens, some caution DROPPING FEDERAL REGS IS AN INVITATION TO of media expose´s, state government reports is in order. TRAGEDY and legislative hearings revealed widespread Before repealing a law that has vastly im- Eight years ago, after 15 years of argu- abuses in nursing homes, from unsanitary proved conditions at nursing homes in Indi- ment, Republicans and Democrats in Con- conditions and malnutrition to ana and nationwide, lawmakers should study gress got together to correct a public embar- overmedication, neglect and sexual, and the sordid history that led to its enactment. rassment. They passed a law to stop nursing physical abuse. In 1987 Congress passed the They are likely to find this is one area where home operators from abusing or neglecting Nursing Home Reform Act, which set na- uniform federal standards make sense. the elderly. tional standards for staff training, individual At issue is the Nursing Home Reform Act They had ample incentive. Reports of resi- assessments of patients and protection of of 1987, the final phase of which took effect dents lying in excrement, dehydrated, mal- basic patient rights, including the right not just this past July. As part of the move to nourished or overmedicated were common- to be physically restrained, the right to turn Medicaid into block grants for the place. State regulation was a failure. Public voice grievances and the right to be notified states, Congress is trying to repeal the law outrage was high. before transfer or discharge. and drastically reduce funding of the nursing It should be just as high now. The regula- The law has begun to make a difference. In home enforcement system. tions created by that law are about to be the mid-1980’s, about 40 percent of nursing The 1987 law—which requires nursing weakened or stripped away—victims of a ide- home patients were physically restrained; homes that receive Medicaid dollars to fol- ological crusade to curb federal authority, now, less than 20 percent are. Improved care low good nursing practices and protect resi- good or bad. has also led to savings on medications and dents’ rights—was the result of years of Control would return to the state, despite unnecessary hospitalizations. study, public hearings and documentation of their history of failure. Now Congress is trying to reshape the abuses, such as the use of unnecessary phys- Those pushing the new plan, House and health-care system by sharply cutting Med- ical restraints and excessive reliance on Senate Republicans, claim their legislation icaid, which provides about 60 percent of drugs for behavior control. is not a repeal. They say the law is ineffec- nursing home funding, and shifting the The standards have been gradually phased tive. And they say it’s hugely expensive. money to state control through block into effect over the past eight years. As of All three claims are fiction. grants. Congress wants to cut $182 billion out July 1, agencies such as the Indiana State Not a repeal? Under existing regulations of Medicaid over seven years, which would Department of Health have federal authority violators are subject to financial penalties, likely lead to reduced reimbursement rates to levy fines and ban admissions at homes decertification, denial of payments or take- for nursing home services and facilities. that violate the standards. As recent experi- over by temporary managers if they violate Many states are insisting that, if they are ence has shown, the law has dramatically health and safety standards. Proposed to assume control of a reduced pot of money, changed how officials police bad facilities. changes would weaken enforcement by states they must have the power to set their own For example: During the entire 11-year pe- that are vulnerable to powerful lobby groups. nursing home standards to eliminate need- riod from 1984 to 1995, Indiana assessed only The Senate wouldn’t require inspections, less costs. House and Senate committees 33 fines against nursing homes for violating nurse staffing or protections against re- have separately passed bills that would give regulations. In the three months since July straints or medication. states primary responsibility for setting 1, 28 state fines have been levied, three Not effective? A government study of 269 quality-of-care standards for nursing homes, homes barred from accepting new residents homes in 10 states cited impressive results. with Washington offering only general cat- pending resolution of problems and four The study found hospitalization of nursing egories to be covered. Nursing home provid- homes scrutinized by state monitors inside home residents down 25%, use of restraints ers could lean on states to cut back on their facilities. In addition, the federal gov- down 25%, and detection and punishment of standards that they will not be able to live ernment denied Medicaid to 12 homes and is- abuses increasing. up to for lack of funds. sued 48 civil financial penalties. Too expensive? Quite the contrary. A study Nearly two million people now reside in If the proposed legislation passes, it is of 9,000 Georgia nursing-home residents re- nursing homes. But with an estimated 43 per- highly unlikely states will replicate the fed- ports a monthly $76,738 savings by curtailing cent of people over 65 years of age likely to eral law. In fact, they will be under intense unnecessary drug therapy, thanks to the reg- spend some time in a nursing home, and an pressure from the nursing home industry to ulations. And that’s not an isolated case. aging baby-boomer population, the demand deregulate facilities to compensate for Med- The National Citizens Coalition for Nursing for these facilities will only grow. To aban- icaid reimbursement cuts. Beds for those Home Reform, a resident advocacy group, don national standards now may invite a re- who depend on Medicaid will become sparse says the changes saved billions in costs at- turn to the nursing home disasters of the since long waiting lists are already common. tributed to poor treatment. past. Scott Severns, an Indianapolis attorney Even the American Health Care Associa- and president the National Citizens’ Coali- tion, representing nursing home owners, says Mr. COHEN. We have had over 50—at tion for Nursing Home Reform, believes fed- costs have not been a problem. least 50—congressional hearings and re- eral rules may actually save taxpayers’ In fact, nursing home owners signed onto ports over the years dealing with nurs- money spent on the elderly. As a result of the legislation when it passed in 1987. So did ing homes, going back all the way to the ’87 law, he notes, hospitalizations of consumer groups. So did state officials. So 1965. This only starts in 1986. We have nursing home residents have dropped 25 per- did the Institute of Medicine, research arm had many more since that time. cent, which means less spent through Medi- of the National Academy of Sciences, whose care. 1986 report on nursing home conditions led to But let me just cite you some exam- ‘‘Nursing home residents who are hospital- the reform. ples of what is taking place, even as I ized for broken bones, bedsores and infec- No credible evidence exists to justify re- speak. tions from neglect cost far more than resi- versing course. If changes are necessary they Recently in Maryland, a resident ex- dents who receive proper care,’’ he says. should be based on the same kind of thor- pired due to strangulation from an op- If Congress wants a compelling reason to ough study and public hearings that pro- posing restraint because the resident preserve the federal protection, it need look duced the original regulations. was not properly wearing a restraint. no further than Ritter Health Care Center in Seniors are in nursing homes because of Indianapolis. advanced age, mental or physical disabil- In Ohio, we had a resident who died Last month, state inspectors found Ritter ities, to recover from hospitalization or be- due to strangulation from a vest-type residents tied with gauze to rails and beds cause they have no one to care for them. restraint that was incorrectly applied. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15669 In Florida, we had a resident who was just a few moments remaining—other more than a factfinding committee be- sexually assaulted by a nurse’s aid. than to indicate that my friend from cause much legislation has come from In Indiana, a resident was found with New Mexico is aware of my concern the hearings you held. maggots in wounds. about this. I know that he and others We had one in the recent past, which In Ohio, a resident was being fed with are working along, hopefully, with oth- you actually brought forth, with ref- a syringe and aspirated. The staff was ers on both sides to make sure that erence to fraud, saving money, some unaware what to do. The resident be- this is corrected. I believe it is a defi- abuses on the side of the SSI Program, came cyanotic and was subsequently ciency. We need to correct it. And it which were clearly brought out by your hospitalized. should be done, if not this evening, cer- committee. I thank you for that, and I In Louisiana, we had a resident who tainly tomorrow before we proceed fur- can assure you we have your concerns was left unattended in a geriwalker ther. And I yield back. under our serious consideration, as we and fell. She hit her head and required The PRESIDING OFFICER. The Sen- move through in an effort to get a good hospitalization. ator’s time has expired. bill that passes the Senate and goes on In Texas, a resident was force fed Mr. DOMENICI addressed the Chair. its way to a conference in the House. with a syringe and aspirated and was Mr. DOMENICI. I yield 2 minutes to Let me also compliment Senator hospitalized. the Senator from California. ABRAHAM for this particular amend- In Maine, we had a resident die of Mrs. BOXER. I thank the Senator ment that we are now addressing. Ac- pressure sores. very much. tually, nothing bothers senior citizens In Indiana, a resident fell down the I would like to commend the Senator more than what they consider to be a stairs and was killed. from Maine for his words about a hid- rat’s nest as they look at their bills In Indiana, a resident in respiratory den part of this bill. and they look at the processes and distress was left unattended for 7 It is a very large bill, and in it is a they receive documentation on what hours. The resident died. repeal of Federal nursing home stand- they owe and what Medicare owes or In North Carolina, a resident re- ards. In the Budget Committee on what Medicaid owes—total confusion. quired thickening liquids to prevent which I serve, I raised this issue. I have Some of them try to find out if they choking. It was not provided. The resi- spoken about this issue on the floor. It have been gouged. Some try to find out dent developed aspiration pneumonia. is truly music to my ears to hear you if they have been overcharged or even In Indiana, a resident was missing speak about this as eloquently as you that they have been charged for some- from the facility. He was found two have. thing they do not remember getting. blocks away. I am sure you are aware that Senator Frankly, it is so complicated that I could go on for some length this PRYOR has put together an amendment. they give up. We are losing because of evening, which I will not do. I suggest I know he was looking forward to that. One of the most credible and reli- we have to make modifications to this working with you on it, and I am a co- able ways to control costs is by having legislation to make sure that we tell sponsor of that amendment. an informed patient concerned about the States, ‘‘No, we are not simply I happen to have had the sad cir- costs. In fact, I think that everyone turning it all over to you, that, be- cumstance of losing my mother a few would agree that over the past 30 years, cause Medicaid has been turned over in years ago, and she died in a nursing one of the reasons that health care the form of a block grant as such, we home. Even with the Federal stand- costs have spiraled is because we are still expect some standards and over- ards, I say to my friend, it is an aw- developing a culture where the recipi- sight and enforcement on the part of fully difficult situation. The people are ent of the benefits pays so little or the Federal Government.’’ so vulnerable. They are as vulnerable, nothing that they never challenge the This is not something that the States in many ways, as little babies. It just bills and, as a result, if it goes unchal- can say, ‘‘Wait a minute. This is a Fed- tears your heart out. lenged long enough, it gets pretty eral mandate here.’’ We have $800 bil- To think that we would allow 50 sep- loose, to be kind of modest in one lion going to the States in the next 7 arate legislatures and 50 separate Gov- statement. years, $800 billion. That gives us some ernors to say, ‘‘Well, gee, maybe we This amendment says we want to right, it would seem to me, to say that don’t have enough money in this, take back the patient, the senior citi- there ought to be standards that have maybe we do,’’ I think is just too im- zen and make them part of the army been set. They ought to be enforced, portant. that polices fraud and abuse. This says and we ought to maintain a level of I am so pleased to hear the Senator if, in fact, the senior finds that they oversight that will, in fact, make sure from Maine say that the Senator from are going to share, by way of a portion that we do not have a repetition of New Mexico, my chairman, is con- of the recovery that is made, it will be some of the things that I have outlined cerned about this matter. I hope we an incentive to them. here tonight. These are just sympto- can reach across the aisle and maybe This is new and different. Some matic; these are just a small sample. restore those national standards. might say it will not work but, frank- I know my friend from New Mexico is I think it is something we did be- ly, what we have been doing is not sensitive to this. He served with me on cause there was a crying need. I agree working. So it seems to this Senator the Aging Committee. The Presiding that change is wonderful, but some- that what we ought to do is adopt this Officer sitting in the chair also serves times it does not make sense to change amendment, make sure it becomes part in that committee. And we will hear something when we learned how rough of the law, and as we move through our more about this. We need to make sure it was out there in those nursing reform, give seniors more choice which that when you finally come to that po- homes. is going to permit them to be more se- sition in life where you have to take a I want to thank my friend very lective, more concerned and to gain parent or a grandparent and turn them much. I yield the floor. more from watching the bills. This into the arms of those who run our The PRESIDING OFFICER. The Sen- ought to become part of the sub- nursing homes—that is just the begin- ator’s time has expired. stantive law of the land. ning—we have to make sure that those Mr. DOMENICI. Mr. President, do I Mr. President, I yield back the re- facilities are well run, they are well have time remaining? mainder of my time, and I suggest the managed, that the residents are prop- The PRESIDING OFFICER. Two absence of a quorum. erly cared for, so that the people who minutes and twenty-two seconds. Mr. HARKIN. Before the Senator have entrusted their loved ones into Mr. DOMENICI. Mr. President, I puts in a quorum call, I hope he will the hands of these individuals who are yield myself 3 minutes off the bill. yield for a question. running the nursing homes do, in fact, I want to thank Senator COHEN for Mr. DOMENICI. Without losing my treat them with loving care, and make his statement tonight and his efforts in right to the floor I will. sure that we are satisfied that that is the past on the Aging Committee. He Mr. HARKIN. This Senator came to so. has done excellent work. Everybody the floor in good faith because I Now, Mr. President, I will not take knows the committee is a factfinding thought that when time was through, the time this evening—I have, I think, committee, but you have turned it into then there would be an opportunity for S 15670 CONGRESSIONAL RECORD — SENATE October 25, 1995 an amendment. I was going to offer a Mr. DOLE. Anyway, there will be 30 when do we vote? Are all the votes second-degree amendment. I wonder minutes, and then after that, that going to be stacked? It appears to this why that is not appropriate to do at would be laid aside and then there Senator that once you debate an this time. would be a motion to recommit Medic- amendment, you debate the second-de- Mr. DOMENICI. Mr. President, I aid, and there will be no first-degree gree, you ought to vote on it and then humbly apologize. What is the Sen- amendments to that. That will be fol- we lose—maybe that is what you want ator’s question again? I was trying to lowed by either an amendment or a to do—but it seems to me that once an get your question answered, but I did motion on education, and then a amendment is debated, if there is a sec- not listen to you. So that is not very amendment or motion on deficit reduc- ond-degree amendment, that is debated good. tion, or an amendment or motion on and, at that point, we ought to vote on Mr. HARKIN. My question was, I rural restoration. it rather than keep stacking. I know thought under the rules, after the time That takes us to approximately 12:30, you are trying to work out an arrange- on the amendment ran out, that it at which time we hope to be able to say ment here, but something is going to would be open for amendment. I had a that we have worked out some agree- be retroactive based on whatever the second-degree amendment I was going ment, where they will have either up or agreement might be. to offer. I was going to do it at this down votes on their first-degree I just hope that at some point we will time. amendments or motions to recommit, get to where we can vote and get that Mr. DOMENICI. Mr. President, let me and we will have up or down votes. part behind us. We understand prob- tell you what I understood the situa- There will not be any second-degrees ably the numbers of the votes, but tion was, and we have the minority on, say, the Abraham amendment, or there might be a surprise or two in on the other amendments, but vote on leader here. I think what we said is the this. or in relation to, and motions to table. Abraham amendment will be second- Mr. DOLE. I do not disagree with the degreed, and you all can amend it, but I think that fairly well covers it. In other words, if we reach an agreement, Senator. But I think until we have an we would like to see the amendment agreement, it probably would not before we agree to that. I just got the Republicans may withdraw all second- and first-degree amendments and have work, because we would be forced, in amendment, and I would like very effect, to offer amendments and may much just to look at it for a minute votes in relation to the major amend- ments. Democrats will do the same on not want to offer amendments. We will and get right back to you, during keep that in mind. I think you are which time I will ask for a quorum the amendments pending. That will take us to 12:30 p.m. tomorrow. Do I right, we ought to have the amendment call. I reinstate my request. and second degree, and then vote. I The PRESIDING OFFICER. The properly State the understanding, I ask think while we are trying to work this clerk will call the roll. the Democratic leader? out—well, we should know by 1 o’clock The assistant legislative clerk pro- Mr. DASCHLE. Mr. President, that tomorrow. ceeded to call the roll. clearly articulates, I think, the agree- Mr. DOLE. Mr. President, I ask unan- ment that we have. We will have a se- Mr. DASCHLE. In addition to that, imous-consent that the order for the ries of amendments tomorrow morning. Mr. President, I share with the distin- quorum call be rescinded. I urge all Democratic Senators to be on guished minority whip that it is our in- The PRESIDING OFFICER. Without the floor to offer the amendments and tention to try to utilize the time we objection, it is so ordered. participate in the debate. We will con- have and to avoid second-degrees, if it tinue to negotiate during that time, UNANIMOUS-CONSENT REQUEST is at all possible, to allow us more op- Mr. DOLE. Mr. President, let me sort with an expectation of having some portunities to offer our amendments. of outline here what we have agreed to final understanding of whether or not I ask the majority leader, we have do. I want to thank the Democratic we can reach an agreement by tomor- shared the first and the second tier leader and the Senator from New Mex- row noon. And then we will work from with the leader. I am wondering if you ico and others who have been working there. might have the list of Republican Mr. DOLE. That would, in effect, on this, along with the Senator from amendments that you are planning to take care of your so-called tier 1 Kentucky, Senator FORD. offer so that we might have the amendments. As I understand it, we have laid aside evening to take a look at them. If that Mr. DASCHLE. That is correct. could be accommodated, that would be the Rockefeller Medicare amendment Mr. DOLE. I make that request. Is helpful. and the Brown amendment to Rocke- there any objection to my request? feller. The Abraham amendment is The PRESIDING OFFICER. Is there Mr. DOLE. The majority whip is pending, and that will be second- objection to the request? working on a list and when it is avail- degreed by Senator HARKIN. After that Without objection, it is so ordered. able, we can do that. I think the major- debate, that will be laid aside, and then Mr. DOMENICI. Mr. President, it has ity whip is working on that list as I the Senator from New Jersey [Mr. been accepted, but might I ask both speak. BRADLEY] will offer a motion to recom- leaders this. It is clear that if we do Is there any objection? mit EITC, and Republicans will offer a not have an agreement and all of the The PRESIDING OFFICER. It has first-degree amendment. first-degree amendments that were of- been agreed to. Following that, we will recess for the fered by the Democrats that have been Mr. DOLE. That will be the last vote night, leaving approximately 8 hours set aside, we can offer our second-de- today. There will be no more votes remaining. Then tomorrow morning, grees to them, is that understood? today or during the evening. the Senator from New Jersey will have Mr. DOLE. That is the understanding an additional 20 minutes or 30 minutes of the two leaders. Hopefully, we can AMENDMENT NO. 2957 TO AMENDMENT NO. 2950 starting at 9 o’clock on the EITC. reach an agreement where they can get (Purpose: To strengthen efforts to combat Mr. DOMENICI. How much time is up or down votes or motions to table Medicare waste, fraud, and abuse) Senator BRADLEY getting? Is he getting and we can have the same. If we can- Mr. HARKIN. Mr. President, I send a special privilege or the regular time? not, we are back to square one and we an amendment to the desk and ask for Mr. DOLE. The regular time. He will start voting. its immediate consideration. save 30 minutes of his allotted time. Mr. DOMENICI. Mr. President, might The PRESIDING OFFICER. The Mr. DOMENICI. I think the Senator I thank the minority leader and those clerk will report. should speak tonight. The whole world who worked with him, including Sen- The assistant legislative clerk read will turn him on and turn the baseball ator EXON and others. We offered you as follows: game off. something a little different than that Mr. BRADLEY. If the Senator will and, frankly, I think this accommo- The Senator from Iowa [Mr. HARKIN] pro- yield, I think the Senator is quoting dates both, and we are very pleased you poses an amendment numbered 2957 to me in my conversation with him, and were able to help us work it out. I amendment No. 2950. he should attribute that to me. thank you very much. Mr. HARKIN. Mr. President, I ask Mr. DOMENICI. I was merely repeat- Mr. FORD. Mr. President, may I ask unanimous consent that reading of the ing what the Senator said. the distinguished majority leader, amendment be dispensed with. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15671 The PRESIDING OFFICER. Without There are a lot of other programs. computers and their programs would objection, it is so ordered. The computer system that HCFA used, pick up duplicative claims and spit (The text of the amendment is print- for Health Care Financing Administra- those out so they would not pay it. On ed in today’s RECORD under ‘‘Amend- tion, the computers are outdated. It is the Medicare side, because of the old ments Submitted.’’) as if we were all using manual type- software and computers, they would Mr. HARKIN. Mr. President, this writers, that is how outdated their not catch it and out would go the amendment is an amendment to the hardware and software is. Here is an- money for two X rays when only one amendment offered by the Senator other report we had from the GAO out- was required. from Michigan, Senator ABRAHAM, and lining that. So our amendment, the amendment I it deals with waste, fraud, and abuse in Very briefly, what the amendment I offered, requires competitive bid. That, the Medicare system. I might just say have offered does is add to the amend- I believe—we can do anything we want at the outset that while I have no real ment offered by the Senator from to Medicare. Want to cut money, want disagreements with the amendment of- Michigan. Basically, it strengthens the to save money in Medicare you can do fered by the Senator from Michigan—it sanctions against providers who rip-off all you want to and jimmy the system, is not a bad amendment—it just does Medicare. Those convicted of health but until we have competitive bidding not go very far. There is a lot more care fraud and felonies would be kicked we are really not going to get to the that I think needs to be done in the out of Medicare. Maximum fines would bottom of the extensive amount of whole area of waste, fraud, and abuse be increased. What we also did, Mr. money that goes out. than is encompassed either in the un- President, I think the heart and soul of What are we talking about? GAO es- derlying bill or the amendment offered the whole thing, is that we have to go timates that up to 10 percent of Medi- by the Senator from Michigan. to competitive bidding. care spending goes for waste, fraud, Mr. President, for the last several We found, for example, that Medicare and abuse. You figure $170 billion this years, I have been privileged to chair was paying up to 86 cents for a bandage year in Medicare, if we took 10 percent, the Appropriations Subcommittee on that the Veterans Administration only that is $17 billion a year. We are talk- Labor, Health and Human Services, pays 4 cents for. We found in durable ing about 7 years here. Mr. President, Education and Related Agencies. medical equipment that Medicare was $17 billion a year for 7 years, and you In that capacity, at least once a year, paying up to $3,600 a year for an oxygen have more than enough to take care of I had a hearing on the issue of waste, concentrator that only costs $1,000. The fixing up the Medicare system just by fraud, and abuse in Medicare. Just Veterans Administration was reim- clamping down on waste, fraud, and about every year I asked the GAO to do bursing at only about $1,200 a year— abuse. a study on one facet or another of the one-third of what Medicare was reim- I realize we cannot get all of that but waste, abuse, or fraud in the Medicare bursing. Same for oxygen equipment if we could just get half of it, if we System. and everything. could just get half of it, we would save We have had several of those, and Time and again, we have found the our taxpayers and we would save the two or three inspector general reports Veterans Administration was substan- beneficiaries from having to pay more on that subject also during that period tially below what Medicare was paying money. of time. for the same items. The reason for that Our amendment provides for that It seems that every year we would is because the Veterans Administration competitive bidding. It would specifi- uncover something and try to take competitively bids for durable medical cally prohibit also Medicare payments some action to stop it, and it would equipment, services, and for supplies; for a number of items clearly not relat- only pop up in another place and be Medicare does not. ed to quality patient care. even worse. Usually, when I tell audiences that, For example, we found, Mr. Presi- I became convinced over the last cou- they cannot believe it. They cannot be- dent, that Medicare was paying for ple of years that major changes had to lieve we would not do something so tickets to sporting events, personal use be made in the way we address the simple and straightforward and so mar- of automobiles, and we even found that issue of waste, fraud, and abuse in the ket-oriented as to require competitive they were paying for travel to Italy to Medicare Program. bidding for supplies, services, and dura- examine art to be put into a hospital. Mr. President, these GAO reports ble medical equipment. Medicare was picking that up. Our that we have had done are available to This started when Medicare first amendment expressly prohibits that. Senators. Here is one that we had on came in 1965—a fee schedule was set up Another part of our amendment medical supplies that was done over for the items, and it has rolled on year clamps down on improper payment for the last year, issued in August 1995. after year after year. ambulance services. Again, another Let me say for the record what the Quite frankly, Mr. President, I say in GAO report that we had done shows GAO found in their study of the pur- all candor, those entities, those compa- that ambulance services are charging chase of medical supplies. They went in nies involved in this, have had a sweet- the highest rate for ambulance services and did a random sample of supplies heart deal. They have opposed efforts even though they are not using all of that were paid for by Medicare. They in this Congress and in other Con- the equipment or they are not using went behind the supplies to get an gresses to do away with the fee sched- the more expensive ambulance services itemized list. ule and go to competitive bidding. I when they go out to pick up a patient. When they looked at it, the result can understand why—because they are Also, our amendment, as I said, puts was startling. The GAO found that 89 really ripping off the system. funds in there so they can get updated percent of the claims should have been Mr. President, we had a study done computers, so they can stop the double partially or totally denied; 61 percent on duplicative claims. Case after case billing. of the money paid out should never where a doctor put in for, say, two X GAO estimated that if this amend- have been paid out. rays; the GAO found out he should have ment, this part of the amendment that That is a lot of money, Mr. Presi- only been paid for one X ray. On and we offered, to require Medicare to em- dent, because last year Medicare paid on. ploy the commercial software that is out about $6.8 billion for medical sup- Again, this is because GAO’s comput- available and to do it within 6 plies. If that sample that GAO took ers could not pick it up. We had testi- months—and GAO said they could do it was representative, and I believe it mony from one private insurance car- within 6 months—that in the first year probably was, you are talking some- rier who also did the billing for Medi- we could save $600 million just by em- where in the neighborhood of $4 billion care. They had one set of computers ploying this software. going for wasteful, duplicative, and and software for their private side of Mr. President, our amendment would fraudulent spending. what they did; they had another set for strengthen the criminal penalties and While we may not get all of that, we what they did for Medicare. also provide rewards up to $10,000 to in- certainly ought to be able to get a good The examples were astounding about dividuals who report violations of the share of that money back for our tax- how for the same claims, covering the law which result in criminal convic- payers who are paying this money in. same items, under the private side the tions for health care fraud. S 15672 CONGRESSIONAL RECORD — SENATE October 25, 1995 Our amendment also provides for uni- In 1996, they confirm that the tax cut, forms (including the EIC outlay reductions) form application process for health that 77 percent goes to people under approved by the Senate Finance Committee care providers seeking to participate in $75,000 in earnings. in a separate mark-up (as requested by Sen- Medicare and Medicaid. Right now, In the year 2000, because there are ator Moynihan): there is just too much paperwork. Our some changes—let us put it all on the PERCENTAGE OF TAX REDUCTION TO INCOME CLASSES amendment says one standardized form table—68 percent of the then-completed for the submission of claims under tax cuts go to $75,000 and under, and 83 Percent Medicare and Medicaid. Again, Mr. percent to $100,000 and less. Calendar year Under Under President, that would save countless Now, let us use EITC, since Chairman $75,000 $100,000 millions of dollars. ROTH asked them: Check about the 1996 ...... 72 88 So, in sum, Mr. President, this EITC. So we make sure we got that. 2000 ...... 61 79 amendment builds on what the amend- With the EITC tax changes, this con- ment offered by the Senator from firmation letter says the following. In At Senator Nickles’ request we also pre- Michigan does and what is in the bill. 1996, the tax distribution is as follows: pared an analysis of the Senate Finance What is in the bill, and even with the ‘‘Under $75,000, 75 percent. Under Committee’s revenue recommendations, in- amendment offered by the Senator $100,000, 89 percent.’’ It has been cluding the effects of EIC reforms previously from Michigan, really does not get to changed by 1 percent, from 90 percent approved by the Senate Finance Committee, the real problem. but limited to the revenue effects of the EIC to 89 percent. reforms, i.e., excluding the outlay or spend- I repeat for emphasis’ sake, the real In the year 2000, with the EITC tax ing portion of the proposed EIC reforms. problem in Medicare is lack of com- changes, 65 percent of the distribution That analysis indicates the following: petitive billing. All of those who be- is wage earners under $75,000 and 81 lieve in the market system and who be- percent under $100,000. PERCENTAGE OF TAX REDUCTION TO INCOME CLASSES lieve the market system gets you the If you are talking about taxes, that best services and the best prices, you is the authentic story, from the au- Percent ought to be for this amendment. We thentic source. And this one, even the Calendar year Under Under ought to, for once and for all, require President has decided not to do his $75,000 $100,000 competitive bidding for Medicare just own. Everybody uses the Joint Tax 1996 ...... 75 89 like we do the Veterans Administra- Committee. And they are saying this. 2000 ...... 65 81 tion. So, when anyone comes down on the Mr. President, I yield the floor. other side and says nobody has dis- With respect to the Senate Finance Com- The PRESIDING OFFICER. The Sen- mittee’s previously approved EIC reforms, proved it, disavowed it, we are going to our analysis of the combined effects of the ator from Michigan. put the letter in the RECORD. Mr. ABRAHAM. Mr. President, I Senate Finance Committee’s EIC reforms, I ask unanimous consent it be print- the $500 child credit and marriage penalty re- yield myself such time as I may use to ed in the RECORD at this point, the let- lief for 1996 indicates that less than 1.5 per- briefly comment on the amendment be- ter dated October 24, and I yield the cent of all households will have in income fore us, and then I will yield further floor. tax increase as a result of the EIC reforms. time to other Members on our side. There being no objection, the letter Other key points to consider include: 3.6 mil- Mr. DOMENICI. Will the Senator was ordered to be printed in the lion households without children would no longer receive an EIC beginning in 1996. This yield 5 minutes to me first and then RECORD, as follows: proceed? reform reinstates the pre-1993 policy of pro- Mr. ABRAHAM. I will. CONGRESS OF THE UNITED STATES, viding an EIC only to families with children. The PRESIDING OFFICER. The Sen- JOINT COMMITTEE ON TAXATION, Approximately 1.2 million households will Washington, DC, October 24, 1995. ator from New Mexico is recognized for owe income taxes as a result of this change. Hon. WILLIAM V. ROTH, Jr., Of the remaining 14.7 million households 5 minutes. Chairman, Senate Finance Committee, Mr. DOMENICI. In the short time- with children who would be eligible for the Senate Office Building, Washington, DC. EIC, approximately 14 million would not frame of this evening, not even an DEAR CHAIRMAN ROTH: I am writing in re- have an increase in their income taxes over sponse to your letter of October 23, 1995, in early part of the day, because I did not current law. Approximately 700,000 house- which you asked me to address several ques- keep tabs on all times, but Senators on holds would owe income taxes because of the tions with respect to the revenue rec- the other side of the aisle—this evening Senate Finance Committee’s EIC anti-fraud ommendations approved by the Senate Fi- it was Senator DORGAN and my col- and illegal alien provisions and the affluence nance Committee on Thursday, October 19, league, Senator BINGAMAN—took to the reforms that count certain types of income 1995, and previously approved reforms to the in determining eligibility for the EIC. floor and talked about the distribution Earned Income Credit (‘‘EIC’’). The high- of the tax cuts. And Senator DORGAN lights of my response to your questions are Families who are currently eligible for the said nobody has disavowed and dis- set forth immediately below. Detailed an- maximum EIC (families with children and proved that 50 percent goes to the very swers to each of your questions are provided having adjusted gross income under $12,000) wealthy people. in the supplemental submission which ac- will receive an even larger EIC next year and Mr. President, the truth of the mat- companies this letter. thereafter. For example: (i) The maximum No factual basis exists for the assertion EIC for a family with one child will increase ter is that was first reported in the from $2,094 in 1995 to $2,156 in 1996. (ii) The Wall Street Journal article, and the (since retracted) contained in the Wall Street Journal of last week asserting that maximum EIC for a family with two or more Joint Tax Committee writes the chair- one-half of all households would experience a children will increase from $3,110 in 1995 to man of the Finance Committee a letter tax increase under the Senate Finance Com- $3,208 in 1996. on October 24. Let me read a para- mittee revenue recommendations—even if In addition, since these families would not graph. one were to include the effects of the EIC re- owe any taxes under the Senate Finance No factual basis exists for the assertion forms previously approved by the Senate Fi- Committee’s revenue recommendations, the (since retracted) contained in the Wall nance Committee. full amount of their EIC would represent an Street Journal of last week asserting that The Joint Committee on Taxation did not outlay payment from the Federal govern- one-half of all households would experience a change its distribution analysis of the Sen- ment. tax increase under the Senate Finance Com- ate Finance Committee’s revenue rec- Families living at or near the poverty line mittee revenue [package]. ommendations. Our analysis of this set of (one-child families with earnings under In other words, it was retracted by proposals indicates: $12,500 and two-child families with earnings the Wall Street Journal but it contin- under $15,500) would continue to receive an PERCENTAGE OF TAX REDUCTION TO INCOME CLASSES EIC in excess of the family’s Federal payroll ues to be used. And in this letter the taxes (employee and employer shares). Joint Tax Committee states the follow- Percent Even after the Senate Finance Commit- ing, and let me read it. Calendar year Calendar year Under Under tee’s EIC reforms, the cost of the EIC would 1996, without EITC changes. $75,000 $100,000 exceed $20 billion in 1996 and thereafter. Some will say wait, you have to have The share of federal taxes paid by higher- 1996 ...... 77 90 EITC in it. I will put it in. Just a 2000 ...... 68 83 income individuals under the Senate Rec- minute. onciliation bill would actually increase as For 1996, it says, ‘‘Under $75,000 is 77 The distribution analysis does not change compared with Federal taxes paid under cur- percent; under $100,000 is 90 percent.’’ significantly if one also includes the EIC re- rent law. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15673 If you have any questions about this infor- current law, adds new offenses to those minutes to the Senator from New mation, please do not hesitate to contact subject to civil monetary penalties, Hampshire, to be followed by 10 min- me. and requires that all civil monetary utes to the Senator from Idaho. Sincerely, penalties be used to reimburse the KENNETH J. KIES, The PRESIDING OFFICER. The Sen- Chief of Staff. Medicare or Medicaid program and any ator from New Hampshire is recognized remaining dollars be returned to the The PRESIDING OFFICER. The Sen- for 12 minutes. health care fraud account. Mr. GREGG. Mr. President, I thank ator from Michigan. Eighth, for the first time, a health Mr. ABRAHAM. Mr. President, I the Senator from Michigan for yielding care fraud section is added to the this time. I think it is important at yield myself as much time as I may criminal code. need just to make a couple of com- this juncture in the debate, because so Ninth, this measure extends the au- much has been discussed relative to the ments on the second-degree amend- thority of State health care fraud con- ment to the first-degree amendment, impacts of the Medicare activity with- trol units by allowing the Units to in- in this bill and all these numbers that and then I will yield the balance of vestigate other Federal fraud abuses time on that point. have been put on the floor, to maybe go and allowing investigation and pros- back and review where we are, espe- The Senator from Iowa commented ecution in the case of patient abuse in that the first-degree amendment was a cially in the context of this amend- non-Medicaid board and care facilities. ment that has been brought forward by good amendment, but not nearly ade- Finally, Mr. President, the 10th rea- quate to deal with the issues of fraud the Senator from Michigan, which is an son the Senate Republican bill is tough excellent amendment, and the amend- and abuse in the Medicare system. I do on fraud and abuse is that it will clar- not disagree with that point. It was not ment which has been brought forward ify existing provisions of the criminal by the Senator from Iowa, because the intended to be the comprehensive solu- antikickback law in the areas of dis- tion to fraud and abuse problems with Senator from Iowa keeps referring to counting and managed care related to the fact that the essence of cost con- Medicare. Medicare choice plans. Direct the Sec- Indeed, we do not need that in my trol in Medicare should be competitive retary of HHS to study the benefits of bidding. amendment because the reconciliation volume and combination discounts to bill includes a whole variety of projects If that is the Senator’s position, and the Medicare Program and develop reg- that is the position of the Members on and sections which try to address these ulations based on the findings of such a problems. the other side of the aisle, then they study. should be embracing with enthusiasm First, the Senate Republican pro- And I just conclude my statement by the proposal for strengthening Medi- posal directs the Secretary of HHS, saying we have worked hard already in care which we have put forward in this through the inspector general, and the this legislation to address the areas of bill because our proposal is competi- Attorney General to establish a joint fraud and abuse in Medicare to try to tive bidding. What we are saying to the program to coordinate Federal, State, save the taxpayers’ dollars. I would senior citizens of this country is today and local law enforcement efforts to just add this point. As I inspected the you are locked into a single-source pro- combat health care fraud and abuse. things that we had already done, it vider, or approach called fee for serv- Second, our bill creates a new health struck me the one missing ingredient, ice. But we are going to open the mar- care antifraud and abuse account to important missing ingredient was to ketplace up to you. We are going to cover the cost of this coordinated provide an incentive whereby the Medi- give you, the seniors of this country, health care antifraud and abuse pro- care beneficiaries themselves could choices—essentially the same choices gram between the inspector general at help us to solve these problems in the in concept that Members of Congress HHS, the FBI, State fraud control years ahead and to provide an incen- have. We are going to allow you to units, and Department of Justice pros- tive for the Medicare beneficiaries to choose between groups of doctors prac- ecutors. All moneys collected in the help us solve these problems in the ticing together in what is known as form of penalties, fines, forfeitures, twin approaches which we have out- PPO’s, and doctors practicing together and damages from health care fraud lined in our amendment. with hospitals in what is known as cases will be turned back over to the That said, at this point—— HMO’s, and groups of doctors and hos- Medicare hospital insurance trust fund. Mr. HARKIN. Will the Senator yield pitals practicing together in all dif- Third, the bill establishes new health just to engage in a 2-minute colloquy? care antifraud and abuse guidelines re- Mr. ABRAHAM. I committed time at ferent kinds of imagination for which lating to safe harbors, interpretative this point to other Members. Maybe we do not have names and titles for, rulings, and special fraud alerts. For they would be able to yield at this euphemisms, initials, and titles for; instance, under this provision, any per- point, but I have to, at this point, yield medical savings accounts, and your son may request the HHS inspector my time to the Senator from New present fee-for-service proposal which general investigate and issue a special Hampshire. you can participate in. We will not fraud alert informing the public about Might I make an inquiry as to how limit your ability to participate in suspected fraudulent activities against much time we have left? that. But we will open the marketplace Medicare or Medicaid. The PRESIDING OFFICER. The Sen- to competitive bidding for your dollars that you are spending on Medicare Fourth, the bill strengthens current ator has 221⁄2 minutes. sanctions by requiring the Secretary of Mr. HARKIN. I just wanted to ask today and on your health care. HHS to exclude from receiving Medi- one very small thing. That is the essence of our proposal. It care or Medicaid payment individuals Mr. ABRAHAM. Sure. is to bring the marketplace into the and entities against whom there have Mr. HARKIN. The Senator was very Medicare system, something that has been convictions for fraudulent activi- thoughtful. As I said, I do not really been ignored over the last 20 years as ties. have much argument with what is in we have seen Medicare evolve. Fifth, we create intermediate sanc- the bill. I am not trying to undo what The impact of doing that is essen- tions for the Secretary of HHS to use is in it, nor the Senator’s amendment. tially what the Senator from Iowa has against Medicare HMO’s which fail to But I still think the heart and soul of mentioned. He thinks the impact of live up to contractual responsibilities. this is competitive bidding. I hope the bringing competitive bidding into a Civil monetary penalties range from Senator will think about that. Maybe narrow band of purchasing activities $10,000 to $100,000. we might reach some agreement on on Medicare, the impact of bringing Sixth, our bill establishes a national this. But I think the time is long past competitive bidding to the entire con- health care fraud and abuse data col- when we should put out competitive cept of health care and the market- lection program and requires the infor- bidding just like they do in the Veter- place into the Medicare system, is to mation collected be made available to ans Administration. I hope your side control the rate of growth of costs of Federal and State government agencies might take a look at that. the Medicare system. Why are we doing and health care plans. I thank the Senator. this? We are doing it because if we do Seventh, this proposal increases the Mr. ABRAHAM. At this point, I not control the rate of growth for the amount of civil monetary penalties for would like to yield 12 of our remaining Medicare system we have been told by S 15674 CONGRESSIONAL RECORD — SENATE October 25, 1995 the Medicare trustees that the Medi- basically we are tracking at least in new spending on Medicare over the care system will go bankrupt. Unfortu- concept—not specific but in concept— next 7 years will be the type of dollars nately, earlier today we heard about with what we are going to offer senior necessary to generate competition in the fact that statements were made on citizens, last year the Federal em- the marketplace for our senior citizens the other side of the aisle from some of ployee plan had no health care infla- as they go out in the marketplace and the Members that we, in controlling tion. This year it will have no health look for different types of health care the rate of growth of the Medicare sys- care inflation. Last year it actually to obtain. tem, are undermining the Medicare had a drop in health care inflation. So How much time do I have remaining? system; the fact we are trying to keep there was actually a negative increase The PRESIDING OFFICER. The Sen- the Medicare system from growing at in premium costs. ator has 1 minute and 6 seconds re- the 10-percent rate of growth, which That is why we believe that when we maining. the trustees have said is going to lead give seniors the option to participate Mr. GREGG. I am running out of to bankruptcy, is being construed on in a marketplace, why when we bring time. I probably will not have time to that side of the aisle as somehow irre- the marketplace forward to compete touch on it. But let me simply say in sponsible. for the seniors’ dollars, we will see the I find it very difficult to follow the type of efficiency which is inherent in concluding on this point that the plan logic of that argument because, as the a capitalist system, in a marketplace which we as Republicans have put for- trustees have told us, a 10-percent rate system, in the type of approach which ward is a plan which fundamentally of growth is not sustainable, and will the Senator from Iowa has said will strengthens the Medicare system. lead to bankruptcy. How can you come work in a narrow band. It will work in It says to seniors that we are going forward on the floor of this Senate and a broad band also. to give you an opportunity to partici- say that, when we are trying to control Therefore, under our plan we are es- pate in similar programs that Members that rate of growth and allow a rate of sentially going to be able to address of Congress and Federal employees growth which is sustainable which al- not just the narrow costs of how much have, the opportunity to go out in the lows the trust fund to remain solvent, a bandage costs but the broad costs, marketplace and look at different we are being irresponsible? the overall health care delivery system health care plans and decide which one The irresponsibility lies with those cost for our senior citizens. That, of is best for you. who continue to allow the costs to es- course, should be our goal. Why should And remember, we also say in our calate uncontrolled at a 10-percent rate it be our goal? Let us get back to why plan that if you, the senior, happen to of growth and, therefore, would lead to that should be our goal—controlling purchase a health care program which bankruptcy of the system. The way we the rate of growth of health care costs. costs less than what it presently costs are planning to control those costs is Because, if we do not control that rate us as a Federal Government to pay for through competitive bidding, using the of growth, once again it is important your fee-for-service health care, we are marketplace, giving seniors options to emphasize the fact that the hospital going to let you keep the savings. which they presently do not have, to go trust fund goes broke. It goes bank- For example, in New England, for the out and choose different forms of rupt. average senior we are paying about health care delivery; being absolutely Once again, I want to point out that $5,000. To the extent that senior is able clear at the same time that, if they I keep hearing this number on the to go out and find a health care plan want to stay in the system they want other side of the aisle that all we need that has to supply the same basic bene- today, if they want to stay in fee for is $89 billion to adjust the Hospital fits and will probably supply many service, they can do that. Health Care Trust Fund. That number more—eyeglasses, some sort of drug What has been the experience that is simply not accurate according to the benefit—to the extent that senior gets leads us to believe that by giving sen- trustees’ report. The trustees’ report that plan because the marketplace iors more choices we will end up being was very definitive in stating that in prices that plan at a lower price, say able to control the rate of growth in order to get actuarial solvency of the they get it for $4,500 instead of $5,000, health care costs? It is what has hap- hospital trust fund of the most mini- we are going to let the senior under our pened in the private sector. The private mal nature, the absolute bare mini- plan keep up to a minimum 75 percent sector, over the last 5 years especially, mum actuarial solvency, you need an of that $500 or possibly the whole $500, has seen a major move of employee in- adjustment that amounts to $387 bil- which is another huge marketplace in- sured groups going from fee for service lion over 7 years, not $89 billion. centive to control costs because it into some sort of coordinated care de- So by using the method of creating makes seniors thoughtful and, yes, livery, some sort of fixed cost insur- competition for seniors, we expect to cost-conscious purchasers of their ance program. The experience has gen- be able to control the rate of growth of health care. erated some fairly clear guideposts for costs. And we are really not control- It also creates in the marketplace a us in the public sector as we attempt ling it all that much, quite honestly. tremendous dynamic to compete for to give our seniors who are getting We are talking about still allowing the those senior dollars, which is the whole Medicare today the same type of op- rate of growth of Medicare to be 6.5 theory behind what we think is known tions that those of us in the Senate percent, essentially the same rate of as capitalism and what we think will have, and that many people in the pri- growth of health care that the Presi- generate, first, better and higher qual- vate sector have, which is the oppor- dent wanted. As pointed out earlier by ity care and, second, care which will be tunity to choose different types of Senator NICKLES on this floor, the more cost-effective and therefore will health care delivery services. President’s budget, as it was sent up, be affordable and therefore will guar- This chart that I have here reflects allowed for a rate of growth in Medi- antee the solvency of the trust fund. what has happened in the private sec- care which was essentially the same as tor as we have seen a movement of ap- our rate of growth in Medicare. The PRESIDING OFFICER. The Sen- proximately 60 percent of the popu- Why did the President send those ator’s time has expired. lation from fee for service into dif- numbers up? Because the President un- Mr. GREGG. I thank the Chair. ferent types of coordinated care, or derstands or at least his trustees un- The Senator from Idaho. care with a fixed cost paid up front. derstand that a rate of growth which Mr. CRAIG. Mr. President, I join my This red line is the rate of inflation in we are presently suffering from—the colleagues tonight to debate this most health care costs. The blue bars indi- 10-percent rate of growth—is important provision of the Senate rec- cate the rate of enrollment in managed unsustainable, and will lead to bank- onciliation bill that is before us and care types of plans. As you see with the ruptcy. You have to slow that rate of the Republican proposal that I am so managed care enrollment going up, the growth. But a 6.5-percent rate of proud to support because of the kind of rate of health care costs, inflation, has growth is a huge—an absolutely huge— elements that we have put before the gone down. In fact, it has dropped by infusion of money into the Medicare American public as truly positive about 50 percent. It has dropped so system. That infusion of money—I will change, while at the same time rec- much that, for example, in the Federal return to another chart which I had ognizing I think some of the very real employee plan, which is the plan that earlier—which represents $349 billion of needs that many of our citizens have. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15675 The one that the Senator from New Now, that is not the only program or of Medicare simply cannot get at the Hampshire has just addressed and the benefit that would have gone to the kind of waste, fraud, and abuse that is one I will spend some time with this senior. That is tax money. That is the current and prevalent within the pro- evening that I think is critical for us hard-working, tax-paying American gram, and in trying to secure it, trying to understand, of course, is Medicare citizen’s dollar that some charlatan is to make it stable, being able to turn to and the changes we are proposing to making off with because they have our citizens and say to them that Medi- bring stability and strength to the sys- learned to game the system and be- care will be there in the out years, tem and the kind of choice and inde- cause we have not been able to catch strong and ready to serve them and pendence that the seniors of this coun- them in gaming the system, or at least their needs, we must get at these pro- try, who are the recipients, the bene- we certainly have not caught them at grams. They must result in the kinds ficiaries of this program, have expected the level that I think all of our tax- of savings, more importantly, the kind and deserve to expect from their Medi- payers would want. of tightening up of it, that I think is so care program. So the 10 provisions that are in our critically necessary. The Senator from Iowa this evening Medicare reform bill, that were spoken So the 10 provisions we have talked has introduced a competitive bid bill in to earlier this evening, along with the about, certainly the one that the Sen- the antifraud and abuse provision of additional provision in the amendment ator from Michigan has offered that Medicare reform, and for a few mo- from the Senator from Michigan, will creates the incentives for the bene- ments this evening I think it would be register a savings of about $5 to $6 bil- ficiaries themselves to become in- very important to spend some time lion, and that is significant. That is big volved, working with Federal, State, with that and to understand it. dollars where I come from, big dollars and local law enforcement units to The Senator from Michigan has put in anybody’s estimation, and when it combat especially the fraud sides of forth an amendment that addresses comes to delivering health care needs the program, are going to be increas- many of the provisions and adds to to our seniors, those are truly impor- ingly valuable, and this is what I am many of the provisions of the Repub- tant dollars. proud to say we have offered. It has lican proposal as it relates to Medicare One of the things that is most signifi- been scored. It saves $4.1 billion over reform; that I think is a tremendously cant in all of this, while we create the period of this legislation, and that positive approach; that in combination brand-new bureaucratic schemes to fer- is of critical need to all of us. with the 10 reforms already in our leg- ret out all of this, is the very simple Mr. President, may I inquire how islation, when scored by the Congres- concept with which the Senator from many minutes are remaining in my sional Budget Office, represents a pro- Michigan has come forward. That is time? posed savings to Medicare of $4.1 bil- that individual Medicare beneficiaries The PRESIDING OFFICER. The Sen- lion. report suspected fraud and abuse and ator has 1 minute. Now, I must say that I am told the we create an incentive program to Mr. CRAIG. As we continue the de- amendment of the Senator from Iowa allow them to do that. bate over the next 12 to 14 hours, Mr. has not been scored, and I wish he were Let me tell you why that is impor- President, I hope that those citizens of in the Chamber so that I could seek tant. I think if every Senator would our country who are watching will rec- that out with him, and if he returns I stop for just a moment, they could re- ognize the importance of what we do; will ask him that question, because as member almost instantly that within and that is, for the first time in my we strive to balance the budget and the last several months they have had time in public service for the State of keep ourselves on course as the Amer- 1, 2, 3, 5, 10 letters from Medicare re- Idaho, that this Congress will truly ican people have asked us to, it is im- cipients in their State questioning bring about a balanced budget pro- portant that amendments that come to whether their bill was accurate, wheth- posal, and one that will set our Govern- the floor, if they are credible, if they er they had been bilked out of a service ment in motion toward a balanced really want to vote on them, ought to that was not delivered and whether in budget. be scored. Ours has been, and it does fact their account had been charged. This is exactly what the American represent a $4.1 billion savings. Mr. President, less than 3 months people were asking for last November. What is significant about that is rep- ago, a former citizen from my State, They were asking us not only to resentative of what is going on in who now lives in California, called my change the way Government thinks health care delivery today in this coun- office one day. I had not heard from and acts, most assuredly the way Con- try and the fact that there are dedi- this man in years. He had happened to gress thinks and acts, but to do the cated efforts at defrauding both the be from my hometown. He is now re- kinds of things that we are doing in the American taxpayer and the consumer tired and living in California, and he Medicare reform, to clean it up, to sta- of Medicare benefits. had major surgery, and he is on Medi- bilize it, to give them choice, to give Senator COHEN was in the Chamber care. For some reason, he thought them the freedom of not just fee for this afternoon or later this evening. He something was wrong with the billing; service, but the kinds of options that serves as the chairman of the Senate that he not only had been overcharged the private citizen of this country has, Special Committee on Aging. I have but there were fraudulent charges in- and to keep the program. the privilege of serving on that com- volved. We know we can balance the budget mittee with him. Over the last several He sent me all of his material and and allow these programs to continue years, both he and Senator PRYOR, who said, ‘‘Senator, I know I no longer live to serve the truly needy in our country chaired that committee before him, in your State but we have known each and those that are direct participants, and I and others who have served on other over the years. Would you look like the Medicare beneficiaries, and to that committee have held a series of into it?’’ do so in a way that allows the program hearings to try to ferret out and under- Mr. President, we looked into it. It to remain strong and assures that in stand the kind of waste, fraud, and was thousands of dollars of billing that the long term we will be able to have a abuse especially being perpetrated on he was questioning. Within a period of balanced budget, turn to the American the seniors of this country that would about a month, we had discovered, in people and say, ‘‘We’ve done it. Your have the kind of impact on Medicare working with HCFA and working with debt is now under control.’’ Let us then that it currently has. Medicare, that this was, in fact, fraud- begin to work on debt structure. Let me give you a couple of figures, ulent billing. The PRESIDING OFFICER. The Sen- Mr. President. As much as 10 percent of Now, that is only one example, and I ator’s time has expired. U.S. health care spending or about $100 have chosen not to use his name to- Who yields time? billion is lost each year to health care night because I did not ask his permis- Mr. BRADLEY addressed the Chair. fraud and abuse. That is a phenomenal sion, but I have done that on many oc- The PRESIDING OFFICER. The Sen- figure. And yet we believe it is reason- casions in working with my constitu- ator from New Jersey. ably accurate. Over the last 5 years, es- ents, and I know nearly every Senator Mr. BRADLEY. Mr. President, I ask timated losses from these fraudulent in the Senate has. We recognize with- unanimous consent to lay the pending activities have totaled $408 billion. out question that the current structure amendment aside. S 15676 CONGRESSIONAL RECORD — SENATE October 25, 1995 The PRESIDING OFFICER. Without year; at the same time, families with the difference between income, Social objection, it is so ordered. incomes below $30,000, which represent Security, and excise. There is just a MOTION TO COMMIT over 40 percent of the American fami- stark number, a $54 billion more in- Mr. BRADLEY. Mr. President, I send lies, face a tax increase. crease of the national debt. a motion to the desk and ask for its Now, Mr. President, if this were the So it seems to me that on two immediate consideration. only measure in this bill, this tax in- grounds, this is not merited. First, be- The PRESIDING OFFICER. The crease on working families, I would op- cause it gives it away to estates of $5 clerk will report the amendment. pose it. If it were the only measure in million a $1.7 million tax cut and raises The legislative clerk read as follows: the bill, I would oppose it. But it is not taxes on families earning under $30,000. the only measure in the bill. There are The Senator from New Jersey [Mr. BRAD- In addition to that, it increases the many other provisions that benefit LEY] moves to commit the bill S. 1357 to the national debt by $54 billion over the pe- many special interests, but there is one Committee on Finance with instructions riod of this bill. But that is not the provision, in addition to this tax in- that the Committee on Finance report the worst when it comes to the question of crease on working Americans of mod- bill back to the Senate within 3 days (not to the national debt, because immediately include any day the Senate is not in session) est income, that I think draws the dis- after the window of 7 years, there is an with identical language, except that the tinction between the parties very explosion of debt. Committee on Finance shall strike sections clearly, and that is the estate tax pro- 7462, 7463, 7464, and 7465 of the bill. The Com- vision in this bill. For example, the capital gains provi- mittee on Finance shall also include provi- The estate tax is, of course, a tax as- sion will cost about $40 billion in the sions which offset the revenue losses from sessed when one passes one’s estate on first years, which is about $5 to $6 bil- the striking of such sections with an elimi- lion a year, but in the remaining years, nation of corporate tax welfare provisions. to one’s heirs. There is a $600,000 ex- emption, meaning that if you have an it costs $30 billion. So it jumps from $10 The PRESIDING OFFICER. The Sen- billion, $11 billion, $12 billion a year. Or ator from New Jersey is recognized for estate, when you pass away, if it is under $600,000 you pay no estate tax. take the IRA proposal; the backloaded one-half hour. IRA cost $7 million in the first 7 years, Mr. BRADLEY. Mr. President, I Every year only 1 percent of those who die pass on estates of more than and $12 billion, a little less than $2 bil- know that this debate is being held op- lion a year, and in the next 3 years posite the eighth inning of the World $600,000. Only 0.2 percent of those who die in a year pass on estates of more costs $21 billion, which is another $7 Series. And I will keep all Members in billion a year. the Senate guessing as to what the than $2 million. Embodied in this bill that increases So talking about the budget deficit, score is, so we can focus on the issue taxes on families working and earning this is an explosion of the debt, an ex- before us, which is the earned-income under $30,000 a year, is a tax cut for es- plosion of the debt in the outyears. On tax credit. tates of $5 million, a tax cut of $1.7 mil- both those grounds, I strongly oppose Mr. President, the earned-income tax lion on average. Let me repeat that. In these provisions. credit is a way to provide tax relief to this tax bill is a tax cut of $1.7 million The question is, is this a tax in- working Americans of modest income. for estates valued at $5 million. crease? We have a very skillful maneu- It is the most significant tax relief pro- Once again, Mr. President, the dis- vering being exercised by the other vided to working Americans of modest tinction is stark. While on the one side. The distinguished Senator from income that we have seen in the last 20 hand, a $1.7 million tax cut is given to New Mexico reported his numbers that years. It has given many who are striv- estates of $5 million, we have a tax in- for people earning under $75,000, 72 per- ing to make a better life for them- crease on families earning under cent of the tax cut goes to people earn- selves and their families under very $30,000. I personally cannot understand ing under $75,000 a year. True. But let difficult circumstances the money they the politics of this. I do not understand us look a little deeper. The bulk of that need to send their kids to parochial the politics of why. I do not understand goes to people earning between $30,000 school, the money they need to maybe the politics of really to whose advan- and $75,000. The tax increase on fami- buy a little bigger apartment, pay the tage it lies, except those who get the lies earning under $30,000 is still there. utility bills. It gives them the money $1.7 million tax cut. that allows them to continue up the In other words, what the distin- So, Mr. President, the amendment guished Senator from New Mexico said ladder of upward mobility. that I have offered says, ‘‘Let’s not in- Mr. President, the bill that we are can be true and still not refute the fact crease taxes through eliminating the that there is a dramatic tax increase considering now raises taxes on those earned-income tax credit.’’ I will get to working Americans. It essentially de- on families earning under $30,000. that in a minute. Then, of course, we have this famous fers the third year of the tax cut that But the other thing that this tax cut joint tax study which concludes that was passed in 1993 for those working does is, frankly, increase the national less than 1.5 percent of all households Americans. In 1981, we passed a tax cut debt. Let me repeat that. This tax cut will have an income tax increase as a that benefited disproportionately the increases the national debt. This is a result of EITC reforms. ‘‘There it is,’’ wealthy, and Democrats constantly deficit reduction package. A deficit re- says the Senator from New Mexico and made the debate that we should defer duction package is for the purpose of the Senator from Delaware, ‘‘only 1.5 the third year of that tax cut because reducing the national debt. This in- percent have an income tax increase.’’ the wealthy did not need more tax re- creases the national debt. lief. Why? Because in the budget resolu- Maybe, but what about Social Secu- We now have a proposal where the tion, there is a provision that says if rity taxes? If you are earning $25,000 a third year of a tax cut is about to be there is an economic benefit from all year, the income tax is going to be a provided to working Americans of mod- this budget cutting, then that eco- big problem; you are going to pay it. est income, and the Republicans are at- nomic benefit, in its total amount, will The big tax you pay is a Social Secu- tempting to defer that tax cut for be spent as a tax cut. That is what the rity tax, and the earned income credit working Americans of modest income. budget resolution said. is for the purpose of offsetting taxes Mr. President, I oppose this effort. I The CBO says if we enact this budget and Social Security taxes. So every- opposed it in the committee. I think with these budget cuts that it will save thing that the Joint Tax Committee that it is shortsighted. I think that it about $170 billion that according to the says in their letter can be true and a is not progrowth. I think it is not budget resolution, over a period of 5 to $20 billion increase in Social Security profamily. I think to raise taxes on 7 years, would be used for a tax cut. taxes can still be valid. families earning under $28,000 a year in But this tax cut costs $221 to $224 bil- So, Mr. President, anyway you cut income is an antifamily, antigrowth lion. So this tax cut adds about $54 bil- this, this results in a tax increase for measure. lion to the national debt over this pe- families earning under $30,000 a year. Mr. President, in this bill, according riod. There is no disputing those num- In my State, which has the second to the Department of the Treasury, al- bers. There are no mysterious letters highest per capita income, that means most 50 percent of the tax breaks go to from the Joint Tax Committee. There about 13 percent of the families in my people making more than $100,000 a are no nuances on words, no playing on State will have a tax increase. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15677 I saw the distinguished Senator from package. The bottom line is this: tained in the Republican Senate bill New Mexico on the floor saying 40 per- American families will be better off will return the program to its original cent of the families in his State would next year under our tax package than goals, those lauded by Senator Long have a tax increase because they earn they are today. Our tax relief package and President Reagan, of a welfare pro- under $30,000 a year. That is because is the biggest tax cut for middle-in- gram focused on low-income working their per capita income is lower. come families in more than a decade. families with children. So, Mr. President, we are going to Mr. President, I agree with the Presi- My colleagues across the aisle should hear a lot about errors and yet in the dent of the United States when he says realize that this will help children. opponents’ provision, only $1.6 billion that the tax increase of 1993 was a mis- Under our bill, the earned income cred- deals with anything related to compli- take—the largest tax increase in the it will be available only to individuals ance. If they are so interested in fraud history of this country. I would hope who are eligible to work in the United and error, why are they not doing more that there would be bipartisan support States. Illegal aliens will no longer to deal with compliance? for our tax cut, in view of the Presi- benefit at the expense of hard-working In the amendment I have suggested, I dent’s message. taxpayers. keep $1.6 billion in compliance meas- Under our reform, more than 98 per- Make no mistake about it, Mr. Presi- ures. And then, of course, the other cent of all U.S. households will receive dent, EIC is a cash transfer program, a side will show a graph. ‘‘This is a gi- either a tax cut or no tax increase. And welfare program, administered through gantic explosion of growth in this pro- this includes our reforms to the earned the Tax Code, rather than through a gram, an explosion of growth.’’ income tax, the $500 per child credit, Federal agency like the Department of Mr. President, when you give some- and the marriage penalty relief in the Labor. If Congress were to reduce the body a tax cut, you lose revenue. In Senate Republican bill. Those are the amounts paid to food stamps, no one 1993, we chose to give families earning facts. would say that Congress is raising under $30,000 a year a 3-year tax cut, I challenge the Administration and taxes. Changes to the EIC are the same which means that tax cut grows. So Congressional Democrats to prove as changes to the Food Stamp Pro- when you see the chart that they their assertion that 51 percent of all gram. We are not raising taxes on EIC might show that shows a figure with a taxpayers would receive a tax increase recipients. line going up saying ‘‘Growth of under our bill. This assertion has no The Democrats are arguing that EITC,’’ translate in your mind: In- basis in fact, and it seriously strains changes to the EIC will raise people’s creasing tax cut for families earning the credibility of the Treasury Depart- taxes. In response to these concerns, I under $30,000 a year. Yes, and if you do ment. The Joint Tax Committee analy- have asked the Joint Committee on not want to give them a tax cut, then sis, released today, shows that the Taxation to perform a detailed analysis you would support the Republican posi- facts are on our side. Republicans are of the Senate proposal to reform the tion. If you believe they should have focusing the earned income credit on EIC. This information is now available, the third year of their tax cut, just as the working poor with children—the and I released it earlier today to the the wealthy had the third year of their people for whom it was originally in- public. tax cut under the bill passed in 1981, tended. We give a tax cut to most fami- Mr. President, the purpose of the then you would support the Demo- lies that pay income tax, and we pre- changes in EIC is to focus the program cratic position. Do we want to raise serve the EIC for those who need it the on the working poor with children. We taxes on working families or not? most. The indisputable fact is that do make four policy changes. We elimi- Which is the progrowth, profamily pol- more than 98 percent of all U.S. house- nate any EIC payment for individuals icy? I do not think that there is much holds will either receive a tax cut or with no children. As I indicated, this of an argument on the other side. have no tax increase with the Senate program was intended to help families They will say, ‘‘Oh, no, we have a Republican bill. with children, and that should con- child credit.’’ Bravo. Let me com- The earned income credit program tinue to be the policy of this program. pliment them. I wish they had sup- started in 1975 in an environment fo- We also prevent illegal aliens from ob- ported my amendment in the Finance cused on reforming welfare policies for taining this benefit. We also provide Committee that would have stricken families with dependent children. Sen- that outside income should be consid- everything in this bill except the child ator Long was a driving force behind ered in determining whether or not one credit, the adoption credit, the student the establishment of the earned income is eligible for the EIC. Why is tax-free loan interest deduction. They voted credit program, and this program pro- interest not considered in determining against it. Why? Because you want to vided cash assistance to working low- eligibility? Why is tax-free Social Se- have that other provision in the bill, income families with children. The Fi- curity or pensions not considered in de- the estate tax provision. nance Committee report on the Tax termining eligibility for the earned in- Remember? A $5 million estate gets Reduction Act of 1975 stated that the come credit? Fourth, we take steps to an average tax cut of $1.7 million. That program should be of importance in in- eliminate the fraud and abuse in this is why you did not support the amend- ducing individuals with families receiv- program. Unfortunately, this program ment and simply have a tax cut for ing Federal assistance to support has had deplorable rates of fraud and working families, because you wanted themselves. There is no doubt that abuse, as high as 30 to 40 percent a the tax cut for estates of $5 million. since the inception of the earned in- year. Recently, there has been, hope- Strike it from the bill, show us that come credit, its focus has been on hard- fully, some improvement in that. But you want only tax cuts for working working, low-income families with it is estimated that it could still be as families. If not, admit to what this children. high as 20 percent. People are outraged game is all about. In 1993, the program strayed from its and shocked with the waste, fraud, and I reserve the remainder of my time. original intent of helping working fam- abuse in food stamps or AFDC, but The PRESIDING OFFICER. Who ilies with children, when President they only amount to 5 to 6 percent. In yields time? The Senator from Dela- Clinton expanded the program to in- this program—the EIC—it amounts to ware. clude childless, able-bodied working as high as 20 to 30 percent. Mr. ROTH. I yield myself 10 minutes. adults. My colleagues across the aisle Now, some Democrats have claimed The PRESIDING OFFICER. The Sen- often point out that President Reagan the EIC reform results in those in the ator is recognized for 10 minutes. supported the program. Yet, when lower-income brackets—51 percent or Mr. ROTH. Mr. President, you have President Reagan lauded the earned in- less—paying higher taxes. That is to- heard a great deal of demagoging dur- come credit, the program only covered tally false, inaccurate, and misleading. ing the past few days from the Presi- working parents of children and cost As I mentioned, I recently wrote the dent, from congressional Democrats, about $2 billion in 1986. Joint Committee on Taxation to an- and from the Treasury Department, a Today, the program makes payments swer a number of questions. I pointed lot of bogus claims about our tax pack- to childless adults, and its costs have out that on Thursday, October 19, 1995, age. We are here this evening to bring skyrocketed to over $20 billion. The re- an article appeared in the Wall Street you the truth about the Republican tax forms of the earned income credit con- Journal entitled ‘‘Tax Analysis Now S 15678 CONGRESSIONAL RECORD — SENATE October 25, 1995 Shows GOP Package Would Mean In- would go up to $3,208 in 1996. The same If we want to talk about bogus crease For Half the Payers.’’ is true for a family with children that claims, the Joint Taxation Commit- Is there any validity to the assertion has income of $15,000. This year they tee—which I might add is chaired by that the Senate Finance Committee would get $2,360; that would rise to the majority party —sends a statement revenue recommendations would result $2,488 in 1996. Not only would they con- saying there is no linkage and no in- in a tax increase for one-half of all tinue to get EIC, but it would continue crease, but refers only to income tax. households? to increase. Here you have another sleight-of- In responding to this question, please Mr. President, let me just again em- hand, bogus effort to avoid the reality, consider the impact of the earned in- phasize that the claim that people with the same way the reality is being come credit reforms approved by the incomes below $30,000 would have a tax avoided right now with the debate on Senate Finance Committee in a sepa- increase is totally false. First, what the thousands of pages that takes place rate markup last September. the Democrats are doing is calling a re- during the World Series. It is a great We received the answer, and the an- duced welfare check a tax increase. way of avoiding accountability. swer says, ‘‘No factual basis exists for The PRESIDING OFFICER. The time the assertion, since retracted, con- of the Senator is expired. The fact is that the earned income tained in the Wall Street Journal of Mr. ROTH. I yield myself 5 additional tax credit is a credit not just against last week asserting that one half of all minutes. income tax but also against the payroll households would experience a tax in- The PRESIDING OFFICER. Without tax. The Joint Taxation Committee crease under the Senate Finance Com- objection, it is so ordered. says nothing about the payroll tax im- mittee revenue recommendations.’’ Mr. ROTH. Second, if someone re- pact. So, in effect, it is another sleight Even if one were to include the ef- ceives a check from the Government of hand. fects of the EIC reforms previously ap- for $50 in 1995, and then in 1996 under If you want to talk about bogus—you proved by the Senate Finance Commit- our reforms receives a check for $75, just heard the chairman of the commit- tee, our analysis indicates that less that is $25 higher. Republicans and tee say, Mr. President, that we are than 1.5 percent—let me repeat that, most people would call that a bigger going to slow down the rate of growth 1.5 percent—of all households would ex- check from the Government. But the of the program. perience an income tax increase. people on the other side of the aisle What is the program? The program is I think that shows the falseness of call it a tax increase if the person was a tax cut for working poor—by his own the claim that 50 percent of the Amer- supposed to receive a check for $100 in admission—when what he has come to ican families would suffer a tax in- 1996. the floor and said is we will slow down crease because of this package we are What we are doing is slowing the rate the capacity of working poor Ameri- considering today. of growth of this program. In the last cans to participate because we are not Now, during the Senate Finance 10 years this program has grown some- going to give as much of a tax cut to Committee’s markup of revenue rec- thing like 1,000 to 1,200 percent. The them. It is that simple. This is not ommendations on October 18–19, 1995, tax credit which was 14 percent plus 5 complicated. We are going to slow various assertions were made with re- years ago is now 36 percent. down the rate of growth in the tax cut spect to the impact of the EIC reforms What we are trying to do is to slow for working poor Americans, but we previously approved by the committee. down the rate of growth so that we can are going to increase the tax break for I asked the Joint Committee on Tax- balance the budget. people who have it already in America. ation to address the following ques- Now, I listened, Mr. President, with That is what this is all about. tions: Would any households receiving great interest to my Democratic col- an EIC today pay more income taxes leagues’ description of what we are If you happen to have a $5 million es- under the combined efforts of the Sen- doing. People are saying that they do tate, you are going to get a $1.7 million ate EIC reform, $500 per child credit, not like the tax package. They make tax break. But if are a working poor and marriage penalty relief? If so, pro- fun of the changes in the estate taxes. person—and I have 194,000 families in vide how many households will be im- Just let me say, as I have gone around Massachusetts that will be affected by pacted in this manner and explain why. back home and talked to the family the cut in this program, 194,000 families The answer is that, ‘‘with respect to farmer or to the owner of a family in Massachusetts are going to pay $370 the Senate Finance Committee’s pre- farm, as I talk to the owner of a small more in taxes because they want to viously approved EIC reform, our anal- business, one of their greatest concerns slow down the rate of growth in the ysis of the combined effects of the Sen- is that they are not going to be able to program. That may not be a lot to the ate Finance Committee EIC reforms, turn over that farm or that business to person who has a $5 million estate, but the $500 child credit, and marriage pen- their children. let me tell you something, for some- alty relief for 1996 indicate that less What we are seeking to do in our body who is working, working, work- than 1.5 percent of all households will changes in the estate taxes is to make ing—which is what we all talk about have an income tax increase as a result that possible, make it possible for the here—to get off of welfare and make it, of the EIC reforms.’’ family farm to continue as it has in the $370 is a lot of money. People count Would families with children who are past, or to make it possible for the en- those nickels and dimes when they are currently eligible for the maximum trepreneur who is successful in creat- in that position. It is whether or not EIC—that is, families with earnings ing a small business to leave it to his they are riding on the T. under $12,000 —continue to receive in children. There was a front-page story in the future years at least as much EIC as We think our package is a humane New York Times, I think last Monday. they now receive? package. We are proud of the fact that It talked about the impact of the Again, the answer is, ‘‘families who it means tax cuts for the American earned income tax credit on working are currently eligible for the maximum people. We agree with President Clin- people. Here was a woman in New York EIC with children and having adjusted ton when he says that the big tax in- City who, because she got the tax cred- gross income under $12,000 will receive crease of 1993 was too high. it for working, was able to cut back on an even larger EIC next year and there- Mr. President, I yield back the floor. her apartment rent. She went back and after. For example, the maximum EIC Mr. BRADLEY. Mr. President, I yield got rid of a $700 rent, went down to a for a family with one child will in- 5 minutes to the distinguished Senator $400 rent so she could add it to the crease from $2,094 in 1995 to $2,156 in from Massachusetts. money that she got from the earned in- 1996. The maximum EIC for a family Mr. KERRY. Mr. President, at the come tax credit. Do you know what she with two or more children will increase outset of the comments of the Senator did? She bought herself a 15-year-old from $3,110 in 1995 to $3,208 in 1996.’’ from Delaware, he talked about telling car so she could drive outside of the This is illustrated here on the chart. the truth versus bogus claims. Then he area that is served by public transpor- It shows, for example, that a family refers to a Joint Taxation Committee tation so she could get a better job with children that has income of $10,000 study to try to refute some comments that earned more money. And that is would receive this year $3,110; that made by the Senator from New Jersey. exactly what she did. She broke out of October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15679 poverty by making hard choices be- Families living at or near the poverty line, Mr. NICKLES. I will not. I want to cause she had the earned income tax one-child families with earnings under answer a couple of allegations that credit. $12,500 and two-child families with earnings were made. When somebody said you Our friends are coming along here. under $15,000, would continue to receive an did not refute it, I want to refute a EIC in excess of the family’s Federal payroll They are giving people who earn taxes, employee-employer shares. couple of them. $300,000 a very nice, fat break. And they Mr. KERRY. Will the Senator yield? Mr. BRADLEY. Mr. President, no one are taking away from the people who Mr. NICKLES. No. earn $30,000 or less. disputes what the Senator has just said. EIC is available for families under The PRESIDING OFFICER. The Sen- There is no way for them to cut it ator is advised that the request should any other way. Is there some fraud in to $28,000. He is saying at the same time this is nothing but a welfare pro- be made through the Chair, when ad- the program? Yes, there is some fraud dressing another Member. in the program. Can we cure that with- gram. He is saying, fine, we will keep the welfare part of this. But if you The Senator from Oklahoma. out reducing the program for eligible Mr. NICKLES. Mr. President, a cou- people? Sure we could. But that is not start to make it a little bit—sorry. We will not offset your payroll taxes. ple of statements were made that the what they are choosing to do. They are Republicans do not know that the EIC going to throw everybody in the pot of I mean, that is not an answer to the problem that we posed. Yes, they posed is used to offset payroll costs. That is fraud. wrong. This program not only offsets I keep hearing about illegal immi- it so that if you have poverty and you are right at the poverty level and you income taxes and payroll taxes, in grants. That is a nice hot button in most cases it offsets them and gives a America now. I do not know many peo- have family now, you have kids—not if you are single and poor, but if you have check back. ple who think illegal immigrants ought In looking at incomes of less than to be getting a lot. But that has now kids, then, yes, it will offset the Social Security earned income. Of course, you $15,000—my colleague from New Jersey entered into this debate. That is not is right—in most cases, income tax li- what we are talking about here. do not pay a whole lot of income taxes in poverty. You pay virtually no in- ability is zero. But this not only offsets It just is beyond comprehension that income tax, but it also offsets the so- in this country we are going to play come tax when you are in poverty. So you only have Social Security. So called FICA, or payroll taxes. such games with definitions and reality Does it offset what an individual when everybody understands what the the earned income would offset Social Security in poverty. But not at $28,000. pays? That is 7.65 percent of their pay- reduction means. roll. Yes, but it also offsets what the The PRESIDING OFFICER. The time Not when the family starts to make a little money. Not when they are mak- employer pays. That is 15.3 percent. of the Senator has expired. So not only does it offset all payroll Mr. KERRY. Mr. President, I really ing $20,000, $25,000, $28,000, $29,000. Not there, no, no, no. That way, you pay taxes, but it offsets it them by 233 per- hope we are going to have a better cent. sense of fairness here than is being ex- more taxes. Welcome to the middle class, the Republican middle class. This is a program that is writing out hibited in this approach to people who checks. This is a program, Mr. Presi- are working and trying to break out of You are middle class. You begin to make it? Pay more taxes. If you have dent, that will cost $23 billion this the cycle of poverty. year, $3 billion of it offsetting taxes, The PRESIDING OFFICER. Who that estate of $5 million, you get a $1.7 million tax cut. That is the story here. and $20 billion were cash payments— yields time? The Senator from Dela- Uncle Sam writing checks. This cash ware. There is no other story. It has not been refuted. A 3-year tax cut in 1993 for outlay program now exceeds the cost of Mr. ROTH. Mr. President, if I might Aid for Families with Dependent Chil- just yield myself 1 minute? working families? Republicans say do not give them that third year. Do not dren, a program that costs $18 billion. The PRESIDING OFFICER. The Sen- This program costs $20 billion. ator is recognized for 1 minute. give them that third year of tax cut. Families making $25,000 pay income Mr. ROTH. The one question we Pro-family? Pro-growth? Hardly. taxes. For families that are paying in- asked of the Joint Tax Committee is: The PRESIDING OFFICER (Mr. BROWN). The Senator from Oklahoma is come taxes, we give a tax cut. If they Would families with children living below have children, we give $500 per child. the poverty line continue to receive an EIC recognized. in excess of the family’s Federal payroll Mr. NICKLES. Mr. President, how That is pretty easy to figure. You have taxes? much remains on this amendment? two children. That is $1,000. If they have four, that is $2,000. So our tax cut And the answer is that: The PRESIDING OFFICER. There are 10 minutes and 8 seconds remain- is very family friendly and very posi- Families living at or near the poverty line, tive. one-child families with earnings under ing. $12,500 and two-child families with earnings Mr. NICKLES. Mr. President, I would I want to mention some of the re- under $15,500, would continue to receive an like to answer my colleague from New forms that we make on EITC because EIC in excess of the family’s Federal payroll Jersey. He said, ‘‘What about a family they are long overdue, and they are taxes, including both employee and employer that makes $28,000.’’ Under current law part of our overall budget plan. We do shares. they have a great big earned income have a budget. We have a budget that So the answer is that EIC more than tax credit of $116. But, look out, they is balanced. President Clinton’s budget offsets the payroll and other taxes of pay income taxes of $1,665. is not balanced. We had a vote on it, the family. Under our proposal they are going to thanks to my colleague from Penn- I yield the floor. get a $1,000 tax cut. Under the proposal sylvania. His budget is not balanced. Mr. BRADLEY. Will the Senator of the Senator from New Jersey, they We use the Congressional Budget Office yield at that point for a question? get $165. My figures calculate they for estimating purposes. He said he was Mr. ROTH. Yes. come out better by $835, under our pro- going to use the Congressional Budget Mr. BRADLEY addressed the Chair. posal. And that is only dealing with Office, and they say at the end of 7 The PRESIDING OFFICER. The Sen- the tax credit for children. It does not years his budget has a deficit of $210 ator from New Jersey. include the fact we are reducing the billion. At the 7 years, our budget has Mr. BRADLEY. The Senator said— marriage penalty, so that gives them a $13 billion surplus. would the Senator read again, once another $100, I will just tell my col- We will have a balanced budget. again, what was it the Joint Tax Com- league from Massachusetts said you did President Clinton does not have one, mittee said about the various taxes not calculate the fact that you are off- certainly not by using the Congres- that were offset? setting payroll taxes. sional Budget Office. My colleagues on Mr. ROTH. The question was: My friend is wrong. the Democrat side do not have one. Would families with children living below Mr. KERRY. Will the Senator yield They disowned the President’s budget. the poverty line continue to receive an EIC for a question? They do not have their own budget. It in excess of the family’s Federal payroll Mr. NICKLES. He will not yield. is nonexistent. taxes? Mr. KERRY. Will he yield for a cor- Mr. SANTORUM. Will the Senator And the answer is: rection? from Oklahoma yield for a question S 15680 CONGRESSIONAL RECORD — SENATE October 25, 1995 just so I understand the point he just cases, writing a check once a year, a At that point in time, I will send an made? It is an interesting point. I am cash outlay program that I mentioned amendment to the desk. not too sure I was fully aware of it. before which exceeds Aid for Families The PRESIDING OFFICER. The Sen- What the Senator is suggesting is that with Dependent Children. AFDC is paid ator from New Jersey has 5 minutes, 20 the earned income tax credit for low- out in a monthly basis to help low-in- seconds remaining. income Americans actually pays out come families. This is a lump-sum pay- Mr. BRADLEY. Mr. President, the as- money in excess of all their Federal tax ment that is paid out at the end of the sertions by the other side that the obligations. Is that correct? year at a cost of $20 billion. child credit is more generous than the Mr. NICKLES. That is correct. This program was lauded by Presi- earned income tax credit for families Mr. SANTORUM. The new definition dent Reagan and others when it was a with children at all income levels be- of what is a tax increase is when the $2 billion program and when the maxi- wilders me. I have four kids. I make Federal Government does not pay out mum benefits were $435. The maximum $15,000 a year. I have a very tiny in- more money to you, and you already do benefit in 1985 was $550. By 1990, it had come tax liability, very tiny. The child not pay, that is a tax increase. So if increased to $953. It was actually $1,500 credit is not refundable. I get no bene- you are entitled to get more welfare— in 1992, and President Clinton doubled fit at all from the child credit—zero. I let us call it what it is. It is a welfare it again. It went up to $3,110. lose about $3,500 in benefits with the So we are talking about a program, if check. It is a check not to offset taxes, loss in the EITC at $28,000. but it is a cash payment to families or you have two or more children, where your maximum benefit went from $500 The Senator picks the absolute per- to individuals. If you were expected to fect number. Why? Because the earned get more money, then by not giving to over $3,000. Some people said these Republicans income tax credit loses its value the them more money, we are giving them higher the income level. So when it a tax increase even though they do not have just slashed this program, and people are going to receive less. I saw a gets to $28,000, it is not worth any- pay taxes. thing. At that point, clearly the child Mr. NICKLES. The Senator is exactly program on CBS tonight, they inter- viewed a woman who had a couple of credit is more valuable. That is not right. policy. That is mathematics. Mr. SANTORUM. That is an amazing kids. She had a couple of jobs. I com- Then the issue of—well, the chart statement. How can anyone call not pliment her. They made her think that that the Senator had with the growth getting more money from the Federal she was going to get less money than of the EITC, it grows because we are Government when you pay no taxes a she got this year. The facts are, if she giving them bigger tax cuts. That is tax increase? is getting $3,110 this year, next year why it grows. So you put that chart up, Mr. NICKLES. I appreciate the state- she gets over $3,200, and the next year and you see the bars go higher and ment. she gets over $3,300. Under our proposal higher. That means a bigger tax cut for Mr. SANTORUM. I would love the the benefit rises from $3,110 to $3,888, families earning under $28,000 a year. If Senator from New Jersey—I know he is an increase of over $700 in the next 7 you do not want a tax cut, then you a Rhodes scholar—but redefine for me, years. want to support the program that please, how someone who does not pay So we did not freeze this program. We would curtail this. Deny the third year taxes—— did not cut it. We do say some people of the tax cut. That is what you are Mr. NICKLES. I say to my colleague should not be eligible because we found saying essentially. that I have the floor. hundreds of thousands of people that Mr. SANTORUM. On his time, I make over $30,000 a year who are quali- Basically, the tax cut for working would love to have him answer that fying for it. They should not be. We families was put in in 1993. It was question. found out that illegal aliens are receiv- phased in over 3 years and the other Mr. NICKLES. I only have 6 minutes. ing benefits, and they should not. So side is saying do not give the third I have several points that I want to we eliminate them. year. Frankly, we agree with Senator Rus- make. The point being when someone That is why it grows. Once you get to sell Long that we should drop the bene- says they are offsetting FICA, the the next year, it is flat because the tax fit for individuals without children. amount not only offsets FICA, but 200 cuts will have been provided. There This program was always formulated percent, actually 235 percent of FICA, will be no more tax cut in the fourth with the idea of helping individuals and and that includes employer and em- year. It is not some kind of conspiracy. families with children. ployee. The employees actually only It is mathematics. You give a bigger We are reforming the system. We are pay half of that amount. In reality, it tax cut, you lose more revenue. We trying to target the assistance to those is about four and a half times what an chose to give a big tax cut to offset So- people who really need it. But then we employee pays on FICA. cial Security, to offset income taxes allow the system to grow. That is my The cost of this program is explod- for working families. And you know point. It really is bothersome to have ing—my colleague from New Jersey what. There are a lot of provisions in individuals stand up and say, you are said he knows the Senator is going to the Tax Code that say you get a credit increasing somebody’s taxes when I stand up and show how this program against income. They are largely cor- know what the facts are. I will read the has exploded. I grinned at him because porate. The other side is not calling figures. If you have two or more chil- I am. This program cost less than $2 that welfare. That is not welfare. But dren, the maximum benefit today is billion in 1985; in 1986, less than $2 bil- somehow when it offsets the income of $3,110. The maximum benefit next year lion. Today the program costs $23 bil- a working family with kids, that is is $3,208. The maximum benefit the lion. That is 11 times what it cost in welfare. next year is $3,312. And, again, it in- 1986. Mr. President, it is beyond me; 78 creases over $100 per year to the maxi- This is an entitlement program. percent of the earned income tax credit mum benefit. In the year 2002, it is What is the definition of an ‘‘entitle- goes to offset Social Security and in- $3,888, a significant increase every sin- ment’’ program? It is when you pass a come tax. The other portion is a re- gle year. It grows with inflation. fundable credit to those families mak- law under which, if you met certain So how can people say, ‘‘Well, you ing $13,000, $14,000 a year who otherwise criteria, you are going to get a check. are increasing taxes’’? It does not would not get anything. That is what the EITC is. It is a cash make sense. payment program—$23 billion in pay- The PRESIDING OFFICER (Mr. The distinguished Senator from ments. SANTORUM). The Senator’s time has ex- Pennsylvania is correct. If you want to Actually, I will give the exact figure. pired. give those families something because In 1995, the figure is $23.7 billion, over Mr. NICKLES. Has all time expired they are working, but they do not pay $20 billion of it is a cash outlay with on our side on this amendment? any income tax and they are at a low Uncle Sam writing checks—not reduc- The PRESIDING OFFICER. The Sen- enough income, they do not pay ing somebody’s cash income taxes and/ ator is correct. enough Social Security tax, you have or payroll taxes on a monthly basis. It Mr. NICKLES. I will wait until my to make it refundable and then you is Uncle Sam, in 99 percent of the colleague from New Jersey concludes. have to appropriate the money. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15681 That is what we do here. And this and make the effective date December sands of people who receive benefits vast amount of money that is appro- 31, 1994. Some people are shocked to that make a lot more than the income priated, as the distinguished Senator find out that they were eligible. I was eligibility called for, people making a from Oklahoma says, is appropriated surprised. But I looked at a GAO re- lot more than $30,000, some making because there is not a way to offset the port, and it said: more than $50,000. They have interest Social Security taxes. It is pretty sim- Illegal alien receipts. IRS expects more income that is tax free. It does not ple. It is not complicated. And it boils than 160,000 illegal aliens received the EIC in count toward their income eligibility down to whether you want to give a 1994. and therefore they can continue receiv- break to families with children or We ought to stop that. Right now it ing EIC benefits. whether you do not. is legal. Mr. President, we need to make some It says: There is the big deal about families reforms and we need to make clear that do not have children. We do not The Internal Revenue Code does not pro- that we want to target these benefits want to give them anything. If you are hibit illegal aliens from receiving EIC if they meet prescribed eligibility requirements. to those people who are truly needy. making $16,000, $17,000 a year, you do That is the kind of reforms that we are Well, they should be, and so let us not have any kids, somehow or another making today. you do not get anything here. Forget make that illegal. If they are here ille- I want to answer my colleague from it. You are not worth it. You are strug- gally, why in the world should we be New Jersey. He said, what about the— gling. You are working hard. But some- giving them a check, especially a maybe I could get his attention. My how you do not qualify for this. In fact, check if you are talking about to the friend from New Jersey asked about a we do not care about it. We do not care tune of $3,000. So let us tighten that up. couple that made $15,000. Well, in 1995, what your Social Security taxes are. That is a loophole that needs to be they received an EIC of $2,360. In 1996, Somehow you are a nonentity. tightened. We need to tighten up loop- under our reform proposal, they are We do not think that. We think that holes. going to have an EIC of $2,488. That is if you earn under $28,000 a year, you Senator ROTH mentioned several. I compliment Senator ROTH because he a $128 increase. ought to get a break, particularly in a has shown great courage and leadership bill that gives $1.7 billion in relief for Now, my colleague from New Jersey in trying to tackle the fastest growing estate taxes. would like that increase to be $400, but entitlement program in Government. The PRESIDING OFFICER. The Sen- we have it increased by $128. They have No other program is growing as rap- ator’s time has expired. an increase. And, again, they did not The Senator from Oklahoma. idly, as fast as the so-called EIC. No pay any income taxes. They are getting other program costs over 10 times as a return in excess, or at least 100 per- AMENDMENT NO. 2958 much as it did 10 years ago and contin- Mr. NICKLES. Mr. President, I send cent of all their FICA taxes, including ues to explode. So it needs to be re- what their employer paid, and we are an amendment to the desk and ask for formed. And no other program that I its immediate consideration. giving them $100 more than they had know of has error rates and fraud rates last year. That is not a tax increase. The PRESIDING OFFICER. The at such astronomical levels as the EIC. clerk will report the amendment. This is a GAO report that is dated My colleague from Pennsylvania The bill clerk read as follows: March 1995: ‘‘Earned Income Credit said, ‘‘Well, how in the world can you The Senator from Oklahoma [Mr. NICK- Targeting to the Working Poor.’’ call something a tax increase if you are LES], for himself and Mr. BROWN, proposes an Well, we should target. I just read giving somebody $3,000, and next year amendment numbered 2958 to the instruc- from a couple of their highlights. It you are going to give them $3,200? How tions of the BRADLEY motion to commit S. says the IRS did a study in 1994 on elec- can you call that a tax increase?’’ 1357 to Finance Committee: Strike all after ‘‘Finance’’ and insert: tronic returns only. They said 29 per- Well, let us just take, for example, ‘‘With instructions to report the bill back cent of the returns received too much that you have a rich uncle. The rich to the Senate forthwith including a provi- EIC, and 13 percent were judged to have uncle wants to encourage certain be- sion stating: received intentional errors. In other havior, saying if you work a little bit, ‘‘The maximum earned income credit for a words, that is fraud. It also mentioned, he is going to give you a bonus. If you family with one child will increase from it says that the most recent taxpayer work about $10,000 or $12,000 worth, he $2,094 in 1995 to $2,156 in 1996 and the maxi- compliance measured showed that is going to give you a $3,000 bonus be- mum earned income credit for a family with about 42 percent of EIC recipients re- two or more children will increase from cause he wants you to work. Is that not $3,110 in 1995 to $3,208 in 1996.’’; ceived too large a credit and about 32 nice? ‘‘And the effective date for section 7461, percent were not able to show that The uncle says, ‘‘I’m going to give ‘Earned income credit denied to individuals they were entitled to any credit. One you $3,000. Next year I am planning to not authorized to be employed in the US’, out of three in the comprehensive give you $3,500.’’ But your uncle’s board shall be moved to taxable years beginning study were not able to show they were of directors said you cannot afford after December 31, 1994.’’ entitled to any credit. And that is that, you are breaking the bank. So in- The PRESIDING OFFICER. Who about 34 percent of the total EIC. stead, they gave you $3,000 next year— What other program has a 34 percent yields time? actually $3,100 next year instead of giv- failure rate, or 30 some-odd-percent Mr. NICKLES addressed the Chair. ing you $3,500. ‘‘We cannot afford it. The PRESIDING OFFICER. The Sen- error rate? This program does. And Let’s give him $3,200. Let’s keep it to a ator from Oklahoma. part of it is because the cost has just more moderate growth. Give him an in- Mr. NICKLES. Mr. President, this is exploded. You have a program that crease, $100, but not $400 or $500. Don’t an amendment offered by myself and grows at 10 times the rate it was just a do that; the program is growing too Senator BROWN that tried to clarify a few years ago, and you have a program fast. But it is a bonus.’’ couple things. where the maximum benefit is six One, we want to state very clearly times what it was 10 years ago, you re- It does not have anything to do with exactly what we did in the bill and that alize you have a program that is rife taxes. This is far in excess of any tax is an increase in the earned income with fraud and needs to be reformed. It liability, either FICA or income tax. credit for individuals with one child has not been yet. The IRS is trying to That recipient said, ‘‘You increased my from $2,094 in 1995—that is present tighten down around the edges, but tax base. I hoped I was going to get law—to $2,156 in 1996. they have not been totally successful. more money.’’ I do not think so. That is an increase of about—what- They may have reduced it somewhat, This body is going to show, I believe, ever the difference is—$60 some-odd, and I compliment them, but they have that we have the courage to curtail the and an income credit for a family of 2 a long way to go if you have an error growth of Medicare, which is a very from $3,110, to $3,208. That is an in- rate of 30, 40 percent. And so we need to popular entitlement program. And we crease of about $100—$98. So we make make some changes. Senator ROTH has are going to have that program grow that very clear. made many of those changes. about 7 percent per year. We have a The second part of that is we say we We say that we must count almost program here that continues to grow. want to deny benefits to illegal aliens all income. We find hundred of thou- The total growth in the EIC program is S 15682 CONGRESSIONAL RECORD — SENATE October 25, 1995 going to grow about 10 percent over the termining who is eligible for this pro- farm or a ranch or a dairy operation. next few years. The out-of-pocket costs gram. You should count other income We want to encourage that. in fiscal year 1995 are about $20 billion. in determining who is eligible. We We say, if they are going to pass the It will be about $23 billion in the year allow eligibility, and the amount of in- property on to their own heirs, they 2002. That is an increase of 15 percent come to determine eligibility, to in- should be able to have a better deal. So in 7 years. crease. we raise that estate exemption up to That is an increase in outlays, so the Right now you qualify for this pro- $1.5 million. And we cut the rate down program grows. It does not grow as fast gram if you have income up to $26,673. for those between $1.5 million and $5 as some people would like. President Some people say, ‘‘You really cut that million so they can keep it in the fam- Clinton and others would like it to back.’’ No. The facts are, under our ily and not have to sell it, not have to grow up to $30 billion. Well, frankly, we proposal, by the year 2002 you can have sell a family business just to pay an in- cannot afford that. We can never bal- income up to $29,200 and qualify. heritance tax. I think that is a fair and ance the budget if we do not have the Now, that does not grow quite as fast a good idea. courage to at least control the growth as President Clinton would like for it I think that is profamily and that is of entitlement programs. And this is to. He allows people to receive the ben- going to encourage growth and encour- the fastest, most fraudulent entitle- efit if they have income equal to age a father, instead of saying, ‘‘Well, I ment program in Government. $34,600. Let us think about that. Are we might as well spend the money because We need to curtail its growth. That is going to have Uncle Sam writing I cannot pass it on. I do not want to what we are trying to do. We allow the checks—remember, 85 percent of this give it to Uncle Sam,’’ we want to en- EIC benefits to go up for individuals program is Uncle Sam writing a check, courage people to build up businesses, with two or more children. They do not not reducing anybody’s taxes, but writ- to expand, to hire more people, to cre- grow as fast as some people would like. ing checks—for families that have in- ate more jobs, and give that to their President Clinton and others would comes less than $34,000. You are going children, and let their children build it like it to grow faster. We cannot afford to be talking about a majority of up and be second, third, fourth, fifth it. So we allow the benefit to go up by American families. And old Uncle Sam generations in some of these family- over $100 a year. is going to be paying people. So we use owned operations or businesses. For individuals who have one child, this income for a massive income redis- Now, we limit it really to the lower we make no change. Individuals that tribution program. size family operations. We did not help have one child get the exact same ben- Contrast that to what we are trying the people that have the very largest efit as they get under present law, to do on the Republican side. We are estates. But I think we were very fam- under our proposal or President Clin- saying, ‘‘No. We are going to give a tax ily friendly. And I think this entire tax ton’s proposal. We did not make a cut for families, a tax cut for people bill is very family friendly. And again change. We did eliminate the benefits who pay taxes,’’ not just come up with I want to compliment the chairman for for individuals without children. schemes to have a negative income tax crafting, I think, a very good, targeted And I think about that. I have kids and have Uncle Sam write big checks approach, one that has 70-some-odd that could qualify. Other people do. We at the end of the year. No. We are percent—three-fourths of this package are expanding eligibility by several going to try to reduce all families pay- is very family friendly. If you look at million people. How much money are ing taxes, reduce their taxes so they the tax credits for children, you look we talking about? We are talking about can take the tax reduction on a month- at the gradual reductions in the mar- $308, I think, this year, giving that ben- ly basis and keep more of their own riage penalty, you look at the estate efit to lots of people. And you say, money. That is what we are talking tax exemptions that we make for fam- ‘‘Why do you care about that? That is about doing. That is what is fair. ily-owned farms and ranches and busi- a small amount of money.’’ nesses, this is a very family friendly Well, look at what this program cost Then my colleague from New Jersey, tax bill, probably the most profamily a few years ago. The maximum pay- or one of my colleagues, was denigrat- bill that Congress has ever seen. ment on families with two or more ing the fact that we made some I would encourage my colleagues to children was $500 in 1985. Today, 10 changes on the inheritance tax, said support it and to reject those who say years later, it is $3,000. What is the ben- how terrible that was. Maybe they we should not make any reduction efit going to be for that individual that should come into my State and talk to whatsoever in the growth of EIC, which happens to be $300 or $400 today? Ten some of the members of the Oklahoma is the fastest growing, most fraudulent years from now maybe it is $3,000. We Farm Bureau or Farmers Union or program that we have in Government will have a program again that contin- some of the wheat growers, because today. ues to escalate. you have a situation where inflation Mr. President, I reserve the remain- This program, Russell Long men- has built up the value of some of these der of my time. tioned it. I have an article in which he farms and ranches, estates, machine states this program should not have shops, whatever, to say they are worth The PRESIDING OFFICER. Who been expanded. Russell Long was one of something. yields time? the fathers of this program. He said it Uncle Sam comes in and says, ‘‘We Mr. NICKLES. Mr. President, I sug- should not have been expanded for indi- want to—’’ Somebody dies. They want gest the absence of a quorum, and I ask viduals without children. to pass the property on to their family, unanimous consent that the time be I might mention in the 1993 tax bill, and Uncle Sam says, ‘‘Well, we want 18 equally charged. there was no Republican that voted for percent of it or we want 55 percent of The PRESIDING OFFICER. Without it, and when it passed the Senate it did it.’’ That makes it very difficult to objection, it is so ordered. not have a benefit for individuals with- pass on to succeeding generations. The clerk will call the roll. out children. That was added on in the So what did we do? Well, we said for The bill clerk proceeded to call the House. And, unfortunately, the Senate a family estate, let us increase right roll. concurred with the House in con- now the exemption from $600,000 and Mr. NICKLES. Mr. President, I ask ference. But it was not in the bill that increase that over 6 years to $750,000. unanimous consent that the order for passed in the Finance Committee in We increased that amount $25,000 per the quorum call be rescinded. the Senate nor in the bill that passed year. And then we also say if it is a The PRESIDING OFFICER. Without on the floor of the Senate. It was added family-held business, we want to en- objection, it is so ordered. in conference. That was a mistake. It courage that. We happen to be UNANIMOUS-CONSENT AGREEMENT was a massive expansion of entitle- profamily, and we happen to be Mr. NICKLES. Mr. President, I ask ment, added entitlement to several probusiness. We want to encourage unanimous consent that when the Sen- million people. family-owned corporations, whether it ate resumes consideration of the rec- So we changed that. We eliminate il- is a janitor service or whether it is a onciliation bill tomorrow, that the legal aliens. And we say we should car dealership or whether it is an in- Democrats have 5 hours remaining on count almost all income. You should surance company. We want to encour- the bill and the Republicans have 3 count tax-exempt interest as far as de- age family ownership, whether it is a hours and 15 minutes remaining. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15683 The PRESIDING OFFICER. Without has to say. Replacing TJTC with WOTC was sorry that Beijing chose to react objection, it is so ordered. will accomplish little if employers, like to Lee’s visit by withdrawing the Chi- f Bill, do not utilize the WOTC program. nese ambassador to the United States, If that happens, kids are the big los- suspending ongoing bilateral discus- MORNING BUSINESS ers. sions on proliferation, canceling visits (During today’s session of the Sen- There being no objection, the letter of United States officials to China and ate, the following morning business was ordered to be printed in the visits of Chinese officials to the United was transacted.) RECORD, as follows: States, and by canceling bilateral dis- f RESTAURANTS, INC., cussions with Taiwan. But now, after Missoula, MT, October 17, 1995. several months of discord, it appears TARGETED JOBS TAX CREDIT Hon. MAX BAUCUS, we have the opportunity to bring some U.S. Senate, stability back to the relationship and I Mr. BAUCUS. Mr. President, I want Washington, DC: to ruminate for a few minutes about I understand that the Senate Finance Com- support the President’s decision to the Work Opportunities Tax Credit, mittee is proposing a new TJTC bill, which hold this summit in New York. now called the WOTC, which is the sub- was similar to the one developed by the I did not believe that this summit stitute for the Targeted Jobs Tax Cred- House Ways and Means Committee. meeting would produce a significant it, which expired at the end of last Their bill, as written, virtually eliminates breakthrough on any of the issues with most companies from participating in the year. which we continue to disagree with Mr. President, the TJTC had some new program by ignoring the youth group (18 to 24 year olds) not located in an Beijing, including Tibet, ballistic mis- problems, but let me tell you, it got empowerment zone, not to mention the in- sile proliferation, nuclear testing, sup- the job done. It encouraged employers creased retention period from 120 hours to pression of dissent in China, and trade to put kids and young adults to work. 500 hours. issues. It did not. Recent press reports Youth who probably would not have Those two changes would preclude most state that Chinese leaders had de- gotten their first job but for TJTC. Montana companies from participating in manded certain concessions from the the proposed program as there are no des- I have a letter, Mr. President, from a United States, such as written assur- good friend of mine in Montana. W.E. ignated empowerment zones in our state that I am aware of, nor would the proposed ances that members of Taiwan’s top Hainline operates 4 B’S Restaurants tax incentive offset the expense of tracking leadership will never again be granted across Montana and several other an eligible employee for 400 hours. After all, a visa to the United States or that the Western states. They serve good food the objective of the program is to give people United States will refrain from criti- and employ a lot of young adults. on government assistance, job training to cism of China’s human rights record in Bill has had a lot of experience in the take advantage of all employment opportu- international fora. The administration TJTC area. In fact, the 4 B’S is nation- nities. Why should the initial employer train rightly gave no such assurances. These those types of people for other employers to ally recognized as a leader when it are important policy issues, with sig- comes to hiring disadvantaged and receive the tax credit? In my opinion, the proposed bill eliminates nificant domestic and international handicapped youth, many of whom had all employers, not located in an ramifications for both governments. their first job with 4 B’s. empowerment zone, from participating in Both governments seem convinced that Bill can tell you about these kids and the new program. The cost of identifying the other is being unreasonable and ob- how they went on to other jobs and to new hires eligible under the remaining cat- stinate. It is unrealistic to expect any success in many fields. In fact, that is egories, and the expense of tracking those el- major accords could have come under igible for 500 hours, would far exceed the tax what TJTC was about, and what we current circumstances. want to achieve with WOTC—we want benefits proposed. to move kids off of the streets, off of The only way our company could effec- This is an unfortunate state of affairs tively participate in the new program would between two of the world’s most influ- welfare and we want to keep them out be with the inclusion of 18 to 24 year olds of the criminal justice system. ential countries and hopefully a pass- that were ‘‘means tested’’, and the retention ing one. But for the time being we Bill is concerned, as am I Mr. Presi- period is lowered to either 200 or 250 hours. dent, that the WOTC is currently con- The above changes to the program would must focus on keeping the relationship tained in the Reconciliation Bill before allow all Montana employers to participate steady and effective. That is why a us, will not do the job. Bill notes in his equally with large city employers and insure summit meeting between the two presi- letter that WOTC: that all people, with employment barriers, dents was so important at this time. have an equal opportunity to seek employ- The United States raised all of the is- As written, virtually eliminates most com- ment for any profession they choose. panies from participating in [WOTC] by ig- sues that we believe to be important I would greatly appreciate you informing and let the Chinese leadership know noring the youth group (18 to 24 year olds) me if these changes can be effected. not located in an empowerment Zone. Sincerely, our commitment to them, and we Mr. President, I joined with Senator W.E. HAINLINE, should continue to do so. But it was MOSELEY-BRAUN last week in an President. also right to listen to President Jiang’s amendment that would have expanded f concerns and to strive for mutual un- WOTC to create two new categories of derstanding, if not mutual agreement. youths which employers could hire THE SUMMIT BETWEEN PRESI- Those who criticize our President for under WOTC: individuals 18 through 24 DENT CLINTON AND CHINA’S failing to win major concessions likely receiving or living with families on PRESIDENT JIANG ZEMIN fail to recognize the realities of the food stamps; individuals 18 through 24 Mr. PELL. Mr. President, I rise today current relationship and the necessity who are non-custodial parents of a to call attention to yesterday’s summit of strengthening contacts at all levels child residing in a family receiving meeting between President Clinton and that will outlast this period and carry AFDC or successor programs; and indi- Chinese President Jiang Zemin in New forward a stronger relationship in the viduals 18 through 24 who are receiving York. future. I commend the President for Supplemental Security Income. Last summer, relations between the holding the summit yesterday and hope Senator MOSELEY-BRAUN and I are two countries fell rapidly and unex- that this meeting will mark the begin- working with Joint Tax to find the pectedly to their lowest point since the ning of a more solid and productive pe- money to include these youths in Tiananmen massacre, largely over the riod of United States—China relations. WOTC. visit of Taiwan President Lee Teng-hui f Mr. President, as always, Bill to Cornell University, his alma mater. Hainline hits the nail on the head. I re- Most of us in the Senate, myself in- THE BAD DEBT BOXSCORE quest that his letter to me be printed cluded, supported that visit as a pri- in the RECORD. Bill has the credentials. vate one for a distinguished alum. I Mr. HELMS. Mr. President, before He has used the TJTC program. He continue to believe that the Chinese discussing today’s bad news about the knows what it takes to make it work. leadership in Beijing overreacted to Federal debt, how about another go, as I would encourage my colleagues to the visit and allowed the bilateral rela- the British put it, with our pop quiz. read their letter and to heed what he tionship to unravel unnecessarily. I Remember? One question, one answer. S 15684 CONGRESSIONAL RECORD — SENATE October 25, 1995 The question: How many millions of tions and the government found his Let me begin my description of this dollars does it take to add up a trillion sound advice and the many insights amendment by going back to first prin- dollars? While you are thinking about gained from his rich experience invalu- ciples. I have a few views which might it, bear in mind that it was the U.S. able to their work. We and they will al- be termed eccentric or quaint or even Congress that ran up the Federal debt ways remember him as someone who naive in this era of behemoth govern- that is $27 billion away from $5 trillion. was ever willing to lend a helping hand ment, and one of them is that there are To be exact, as of the close of busi- or a word of comfort. Mr. Brown is a ‘‘responsibilities’’ which follow from ness yesterday, October 24, the total thoughtful, pragmatic, and dedicated being a custodian of Federal money. federal debt—down to the penny—stood individual who touched many of our I know that is a strange and even bi- at $4,975,508,732,304.35. This figure is ap- lives and who made an enormous con- zarre thing in this day and age, to talk proximately $27 billion away from $5 tribution to the lives of many poor peo- about ‘‘responsibility’’ instead purely trillion. Another depressing figure ple around the world. I ask my col- of ‘‘rights,’’ or purely of ‘‘victims.’’ We means that on a per capita basis, every leagues to join me in paying tribute to are all experts on our own rights, but man, woman, and child in America Don Brown and in wishing him well in rarely do we acknowledge that these owes $18,887.12. his future endeavors. rights confer responsibilities. And that Mr. President, back to our pop quiz, f is what this issue is about—the respon- how many million in a trillion: There sibilities of those who receive Federal THE ISTOOK-MCINTOSH are a million million in a trillion. money. AMENDMENT f The Senator from Michigan is justly Mr. SIMPSON. Mr. President, I rise TRIBUTE TO DON BROWN concerned about the influence of lobby- to respond to the statement made yes- ists over the public policy process. This Mr. INOUYE. Mr. President, I rise terday by the distinguished Senator today to pay tribute to Mr. Donald S. concern animates his sincere desire to from Michigan, my old friend Senator pass lobbying reform legislation—and Brown, who throughout his exceptional CARL LEVIN. We came here to the Sen- career dedicated himself to public serv- he is proceeding remarkably toward ate together. I have the greatest admi- that end. ice. Mr. Brown has been a pioneer in ration and personal regard for him. the field of economic development. He I trust that my colleagues will listen I agree with that concern, and I worked tirelessly to help the poor very carefully to what I have to say would add to it by saying that the around the world achieve a better way about this issue—the so-called ‘‘Istook- American public knows that ‘‘some- of life. He has also been instrumental McIntosh’’ amendment which may be thing is wrong’’ with the process. They in shaping the agenda of both bilateral included in the Treasury-Postal appro- know that the process itself interferes and multilateral development institu- priations conference report. with good policy. They know that the tions, encouraging them to focus close- I ask for your close attention because interests of the public at large are not ly on the needs of the people. I am certain that your offices are hear- served well when Washington has so For the last 12 years, Don Brown has ing about this language, just as the contrived matters as to amplify the ac- served as the vice president of the Senator from Michigan has been hear- cess and the influence of certain spe- International Fund for Agricultural ing about it. And, if the material com- cial interests, which comes effectively Development [IFAD], a specialized ing across my desk is any guide at all, at the expense of the interests of the agency of the United Nations in Rome. a clump of what you are hearing about whole. As the most senior American in the or- it is plain hogwash, or more civilized, The average person on the street ganization, he has been an innovator of rubbish. I would surely include the would be scandalized to find out that new and creative ideas that IFAD has commentary of the New York Times we, the Congress, have been blithely implemented effectively on the ground. within that description. engaging for years in the practice of fa- He has helped sharpen the focus of I have been in the negotiations con- voring political organizations with tax- IFAD, which is the only international cerning the Istook-McIntosh language. payer-provided money. agency which devotes all of its re- I have been working side by side with I am not talking about simply the sources to the rural poor. Most re- my colleague from Idaho, Senator narrow practice of using Federal dol- cently he has worked diligently, with LARRY CRAIG. One could not ask for a lars to lobby. That is illegal already, as other senior IFAD officials, to stream- better ally in this or any other cause. the Senator from Michigan has so ably line IFAD, increase its efficiency, and The Senator from Idaho brings many pointed out. reduce its administrative costs. Don singular qualities to this work—a com- But I think we need to agree that it Brown has labored unselfishly to pro- mitment to genuine reform, great real- is wrong to be giving Federal dollars to mote development and reduce poverty ism about what it is possible to achieve political organizations, whether or not and has been an inspiration to all of us in legislating, and unflagging consider- we ‘‘mark’’ those bills they receive and working for a better world. ation for the concerns of his col- then say that only those dollars can’t Mr. Brown also ably served in the leagues—especially including me. be used for lobbying Congress. U.S. Government for over 20 years. He We know what this proposed amend- willingly accepted very difficult as- ment does, and what it does not do. Can you imagine the outcry, wailing signments in various U.S. Agency for And I can certainly assure my col- and gnashing of teeth that would exist International Development [U.S. AID] leagues that much of the lobbying on if the Federal Government were found posts throughout Africa and the Near this amendment has been hysterical at to have channeled millions in grant East. During this time he held the posi- the worst, misleading at best. It is no money to the Christian Coalition? Or tion of mission director to Morocco and wonder that my friend, the Senator the Heritage foundation? It wouldn’t Zaire. In his last field assignment, Mr. from Michigan, is agitated about it, matter whether that money was used Brown served as the director of the given the abjectly horrifying portrayal to hold seminars or to buy stationery. U.S. AID Mission to Cairo, Egypt, one by those lobbying this issue. The public would swiftly know that of AID’s largest missions. Mr. Brown It almost tempts me to coin a new this was wrong, that Government also served at AID headquarters in aphorism—‘‘hell hath no fury like an should not be in the business of prop- Washington as the Deputy Assistant individual whose access to Federal ping up the operations of political or- Administrator of AID to help formu- bucks has been conditioned in any ganizations. late U.S. development policy. He also way.’’ Because that is what this issue And yet that is precisely what we in was the Executive Director of the Com- is about—access to the Federal Treas- America have been doing. I found this mission on Security and Economic As- ury. It is not about ‘‘free speech’’ or year that the AARP received $86 mil- sistance, established by the Secretary the first amendment, or anything of lion in Federal grants—this, the larg- of State. the sort. Those are merely the terms est and most powerful lobbying organi- Throughout his career, Don received which are being applied during the ar- zation in the country—the King Kong numerous awards recognizing his out- gument by those who wish to continue of lobbying ‘‘gorillas.’’ standing achievements. His colleagues to ensure themselves of continued de- At the time, I was criticized for ‘‘sin- both within international organiza- livery of Federal money. gling out’’ the AARP. I was told that October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15685 the only way ‘‘to be fair’’ was to deal ernment grantees when we suggest The language does not exclude ‘‘con- with the problem as a whole, to put a that they should no longer be able to tractors’’ in any general way, although stop to the practice across the board. ‘‘count’’ the amount of their Federal the language does not apply specifi- That is what Congressmen ISTOOK, grants in computing their lobbying ex- cally to ‘‘contracts.’’ There is a very MCINTOSH, and EHRLICH are attempting penses under the formula which I just good reason for this, and this is the to do. outlined. This has even been a rallying ambiguity as to what constitutes a Let me repeat that I believe we cry against the principles in the grant ‘‘contract’’ with the Federal Govern- should all agree on the basic premise reform amendment—how outrageous, it ment. The inclusion of ‘‘contracts’’ in from which we should be working; we is said, that there should be any re- this legislation would mean that every should not be in the practice of funding striction on the use of private funds. HMO around the country which con- political organizations with Federal Let me try to calm the heaving bos- tracts to provide services under Medi- money. oms out there by asking my colleagues care would be covered. That and simi- Thus, I have been working with my to think about this substantively for lar consequences are the reasons that colleagues on the House side to try to just a moment. First of all, the exist- ‘‘contracts’’ are not included; it is not develop a reasonable and balanced test ing formula—already in the law—al- some sinister conspiracy to exclude or for eligibility for public funds. Not to ready applies to all 501-H groups even if target any particular group. If oppo- restrict anyone’s rights of political ex- they don’t receive Federal money. So nents of the legislation can figure out pression—but rather, to specify mini- this supposed restriction on the use of a way for us to responsibly include mum standards for the non-political, private funds already exists. ‘‘contracts’’ in the scope of this legisla- impartial distribution of public mon- Furthermore, consider the paradox tion without creating serious ambigu- ies. I believe that our final product will that results if we continue to ‘‘count’’ ities and contradictions, we would be try to set reasonable boundaries for the the Federal money when computing al- most happy to work with those sugges- types of organizations which should be lowed lobbying expenses. If you have tions. receiving Federal money. two organizations—each with the same Let me remind my colleagues that Mr. President, I will conclude my re- amount of private support—then, under this is not a novel concept. Already in marks, because there will be time to current law, the one that pulls down a the law there are restrictions on the debate this later at length. But for the Government grant can spend more on amount of lobbying which can be done record today, I do not want to let the lobbying than the one which doesn’t. by 501–C–3 organizations which take current characterization of this legis- That is the very essence of taxpayer- the 501–H election to identify them- lative language go unchallenged. subsidized lobbying, which we all agree selves as charities. In return for the I want first and foremost to repeat is wrong. It only makes sense for an or- benefit of tax deductible contributions, my response to a central point made by ganization’s lobbying expenses to be these organizations agree to limit their the opposition. Somehow the Istook based on their degree of private sup- lobbying expenses. They may spend 20 language is said to be sinister because port, not on the amount given to them percent of their first $500,000 on lobby- it applies the spending formula to the in Federal money. ing, 15 percent of their next $500,000, 10 nonfederal, private money. percent of their next $500,000, and 5 per- I expect that this debate will heat up Of course it does. Which money is the cent after that, on up to a global cap of still further, and I expect that hysteria existing 501-H spending cap formula $1 million on lobbying. and distortion will abound. I can see supposed to apply to? The Federal Let me repeat for my colleagues: some of it already. I have read articles money? That is supposed to be illegal, This formula is already in the law. saying that somehow this legislation to use Federal money for lobbying. No, Now. It is accepted by all as a reason- will stop organizations from being able it has always been understood that able and balanced limit upon the polit- to write editorials and to even make those restrictions applied to the pri- ical activities of such organizations. their opinions known. That is non- vate support; there is nothing novel or No one construes this as an sense, unless somewhere in this coun- sinister of evil about that. The Pro- abridgement of first amendment rights. try it costs you $1 million to write a posed language would simply make this It is a consequence of our consensus letter to the editor. explicit. opinion that predominantly political I personally will have my old bald We are still working with House ne- organizations should not receive cer- dome battered because I have stated all gotiators to try to craft a package tain Government benefits. along that I would seek to protect the which we believe will be worthy of Sen- I urge my colleagues to go out in the ‘‘true’’ charities from the scope of any ate support. I trust that my colleagues land and talk to various individuals legislation—the 501–C–3 organizations will study the details about the fin- about the 501-H spending formula. Not which we all care so much about—and ished product rather than to listen to the ones ‘‘beating the drum’’ about this should. the characterizations that have been legislation. But most others would Well, the amendment which hope- made by those who are lobbying agree that the formula is extremely le- fully will shortly be presented as an against it. nient, very generous—some would say Istook-Simpson compromise will in- This could be our best chance to ef- it is so generous as not to constitute a deed protect them. We will protect fect true lobbying reform—and the best significant restriction at all. them not by creating a blanket exemp- measure of that is the degree to which I have been working with my House tion for all charitable groups, but by this has agitated those lobbyists suck- colleagues to develop reforms of these leaving ‘‘in place’’ the spending restric- ling at the Federal breast. We should boundaries to make certain that they tion formulas that already apply to be equally vigilant about gifts from work in practice in a way that they charitable organizations. lobbyists, and gifts to lobbyists. This have not always worked before this I have also heard various muted and measure attempts to deal with the lat- time. sometimes raucous imputations that ter. The Senator from Michigan high- this amendment is somehow discrimi- I thank my colleagues and I yield the lighted one particular feature of the natory, that it singles out a particular floor. originally proposed Istook language, ‘‘type’’ of recipient for restriction. It singling it out for criticism. This con- has been implied—although not overtly f cerns the application of the spending stated—that somehow we are working MESSAGES FROM THE HOUSE formula to non-Federal money. I lis- to exclude for-profit lobbyists from tened carefully to that commentary, this legislation, targeting the legisla- At 12:19 p.m., a message from the and I wonder whether or not my old tion only against ‘‘nonprofits.’’ House of Representatives, delivered by friend from Michigan and the rest of That is simply untrue. The Istook- Ms. Goetz, one of its reading clerks, an- the Senate are aware of the way in McIntosh-Ehrlich amendment does not nounced that the House has passed the which the law already works in this distinguish between for-profit and non- following bill, without amendment: area. profit entities. If a grant is given to a S. 1322. An act to provide for the relocation I have been distressed to see the for-profit taxpaying organization, they of the United States Embassy in Israel to Je- howls and shrieks of outrage from Gov- are subject to the same lobbying caps. rusalem, and for other purposes. S 15686 CONGRESSIONAL RECORD — SENATE October 25, 1995 The message also announced that the ate to the bill (H.R. 2002) making ap- ing to such organizations—real prop- House has passed the following bills, in propriations for the Department of erty that was acquired by the United which it requests the concurrence of Transportation and related agencies States should such property be deemed the Senate: for the fiscal year ending September 30, to be surplus to the need of the federal H.R. 117. An act to amend the United 1996, and for other purposes. government—but also provides for the States Housing Act of 1937 to prevent persons f repurchase of the property at today’s having drug or alcohol use problems from oc- fair market value, which will enable cupying dwellings units in public housings MEASURES REFERRED the United States to recapture the designated for occupancy by elderly families, The following bills were read the first original value of the property, as well and for other purposes. H.R. 782. An act to amend title 18 of the and second times by unanimous con- as any associated appreciation in value United States Code to allow members of em- sent and referred as indicated: which has accrued since the time of ac- ployee associations to represent their views H.R. 117. An act to amend the United quisition. before the United States Government. States Housing Act of 1937 to prevent persons Mr. President, this measure also au- H.R. 1114. An act to authorize minors who having drug or alcohol use problems from oc- thorizes the establishment of a trust are under the child labor provisions of the cupying dwellings units in public housings Fair Labor Standards Act of 1938 and who are designated for occupancy by elderly families, fund in the United States Treasury, in under 18 years of age to load materials into and for other purposes; to the Committee on which would be deposited that amount balers and compacters that meet appropriate Banking, Housing, and Urban Affairs. which represents the appreciated value American National Standards Institute de- H.R. 782. An act to amend title 18 of the of the reacquired property. For each sign safety standards. United States Code to allow members of em- property so repurchased by a Native The message further announced that ployee associations to represent their views American Trust Organization—the before the United States Government; to the amount associated with the appre- the House agrees to the amendment of Committee on the Judiciary. the Senate to the bill (H.R. 716) to H.R. 1114. An act to authorize minors who ciated value of such property—would amend the Fishermen’s Protective Act. are under the child labor provisions of the be added to the corpus of the trust. In The message also announced that the Fair Labor Standards Act of 1938 and who are turn, the income accruing on the in- Speaker appoints Mr. CUNNINGHAM as under 18 years of age to load materials into vestment of the trust corpus funds an additional conferee in the con- balers and compacters that meet appropriate would be expended for the purposes of ference on the disagreeing votes of the American National Standards Institute de- health and education authorized under two Houses on the amendments of the sign safety standards; to the Committee on existing federal law.∑ Labor and Human Resources. Senate to the bill (H.R. 4) to restore the American family, reduce illegit- f By Mr. HOLLINGS: imacy, control welfare spending and re- INTRODUCTION OF BILLS AND S. 1362. A bill to authorize the Sec- duce welfare dependence. JOINT RESOLUTIONS retary of Transportation to issue a cer- The message further announced that The following bills and joint resolu- tificate of documentation with appro- the House disagrees to the amendments tions were introduced, read the first priate endorsement for employment in of the Senate to the bill (H.R. 1617) to and second time by unanimous con- the coastwise trade for the vessel consolidate and reform work force de- sent, and referred as indicated: Focus; to the Committee on Commerce, velopment and literacy programs, and Science, and Transportation. for other purposes, and agrees to the By Mr. INOUYE: S. 1361. A bill to provide for the repurchase TRADING PRIVILEGES LEGISLATION conference asked by the Senate on the of land acquired by the United States from disagreeing votes of the two Houses Native American organizations, and for Mr. HOLLINGS. Mr. President, I am thereon; and appoints Mr. GOODLING, other purposes; to the Committee on Govern- introducing a bill today to direct that Mr. GUNDERSON, Mr. CUNNINGHAM, Mr. mental Affairs. the vessel Focus, U.S. Official Number MCKEON, Mr. RIGGS, Mr. GRAHAM, Mr. By Mr. HOLLINGS: 909293, be accorded coastwise trading SOUDER, Mr. CLAY, Mr. WILLIAMS, Mr. S. 1362. A bill to authorize the Secretary of privileges and be issued a certificate of Transportation to issue a certificate of docu- KILDEE, Mr. SAWYER, and Mr. GREEN as documentation under section 12103 of mentation with appropriate endorsement for the managers of the conference on the employment in the coastwise trade for the title 46, U.S. Code. part of the House. vessel Focus; to the Committee on Com- The Focus was constructed in The message also announced that the merce, Science, and Transportation. Kowloon, Hong Kong, in 1983 and is a House disagrees to the amendments of By Mr. ABRAHAM: sailing vessel presently used for rec- the Senate to the bill (H.R. 1058) to re- S. 1363. A bill to terminate the agricultural reational purposes. It is 47.8 feet in form Federal securities litigation, and price support and production adjustment length, 15.8 feet in breadth, has a depth for other purposes, and asks a con- programs for sugar on the date the President certifies to Congress that a General Agree- of 6.5 feet, and is self-propelled. ference with the Senate on the dis- ment on Tariffs and Trade has been entered The vessel is owned by John agreeing votes of the two Houses there- into that prohibits all export subsidies for Passaloukas of Hilton Head Island, on; and appoints the following Mem- sugar, price support and production adjust- South Carolina. Mr. Passaloukas would bers as managers on the conference on ment programs for sugar, and tariffs and like to utilize his vessel in the coast- the part of the House: other trade barriers on the importation of wise trade and fisheries of the United From the Committee on Commerce, sugar, and for other purposes; to the Com- States. However, because the vessel for consideration of the House bill and mittee on Agriculture, Nutrition, and For- was built in a foreign shipyard, it does the Senate amendment, and modifica- estry. not meet the requirements for coast- tions committed to conference: Mr. f wise license endorsement in the United BLILEY, Mr. TAUZIN, Mr. FIELDS of STATEMENTS ON INTRODUCED States. The present owner purchased Texas, Mr. COX of California, Mr. BILLS AND JOINT RESOLUTIONS the Focus in a state of disrepair, after WHITE, Mr. DINGELL, Mr. MARKEY, Mr. the vessel had been neglected for ten BRYANT of Texas, and Ms. ESHOO. By Mr. INOUYE: years, and has totally refurbished the As additional conferees from the S. 1361. A bill to provide for the re- vessel in U.S. shipyards. Coastwise doc- Committee on the Judiciary, for con- purchase of land acquired by the Unit- umentation is mandatory to enable the sideration of the House bill and the ed States from Native American orga- owner to use the vessel for its intended Senate amendment, and modifications nizations, and for other purposes; to purpose. committed to conference: Mr. HYDE, the Committee on Governmental Af- Mr. MCCOLLUM, and Mr. CONYERS. fairs. The owner of the Focus is seeking a SURPLUS REAL PROPERTY LEGISLATION waiver of the existing law because he At 3:21 p.m., a message from the ∑ Mr. INOUYE. Mr. President, I intro- wishes to use the vessel for rec- House of Representatives, delivered by duce a measure that would authorize reational and ecotourism charters. His Mr. Hays, one of its reading clerks, an- the repurchase of surplus real property desired intentions for the vessel’s use nounced that the House agrees to the by native American trust organiza- will not adversely affect the coastwise report of the committee of conference tions. trade in U.S. waters. If he is granted on the disagreeing votes of the two This measure is unusual in that it this waiver, it is his intention to com- Houses on the amendments of the Sen- not only serves the objective of restor- ply fully with U.S. documentation and October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15687 safety requirements. The purpose of body I will fight diligently on the side (c) DELEGATION TO STATES.—Subject to the legislation I am introducing is to of free trade. Understanding the impor- title 23, United States Code, the Secretary of allow the Focus to engage in the coast- tance of global free trade in a growing Transportation shall delegate responsibility wise trade and the fisheries of the world market, I will continue to work for construction of the project to the State of Kentucky, on request of the State. United States. to eliminate export subsidies and other (d) ADVANCE CONSTRUCTION.—If the State of price supports worldwide so that we Kentucky has been delegated responsibility By Mr. ABRAHAM: may eventually achieve true free S. 1363. A bill to terminate the agri- for construction of the project and the trade.∑ cultural price support and production State— adjustment programs for sugar on the f (1) has obligated all funds made available to the State under this section for construc- date the President certifies to Congress ADDITIONAL COSPONSORS tion of the project; and that a General Agreement on Tariffs S. 612 (2) proceeds to construct the project with- and Trade has been entered into that out the aid of Federal funds, in accordance At the request of Mr. ROCKEFELLER, prohibits all export subsidies for sugar, with all procedures and all requirements ap- price support and production adjust- the name of the Senator from Min- plicable to the project, except to the extent ment programs for sugar, and tariffs nesota [Mr. WELLSTONE] was added as a that the procedures and requirements limit and other trade barriers on the impor- cosponsor of S. 612, a bill to amend the State to the construction of projects tation of sugar, and for other purposes; title 38, United States Code, to provide with the aid of Federal funds previously to the Committee on Agriculture, Nu- for a hospice care pilot program for the made available to the State; trition, and Forestry. Department of Veterans Affairs. the Secretary of Transportation, on the ap- SUGAR LEGISLATION S. 1248 proval of the application of the State, shall ∑ Mr. ABRAHAM. Mr. President, today At the request of Mr. WELLSTONE, the pay to the State the Federal share of the I am introducing a bill to terminate name of the Senator from Nebraska cost of the project at such time as additional funds are made available for the project U.S. agricultural price support and pro- [Mr. EXON] was added as a cosponsor of under this section. duction adjustment programs for sugar S. 1248, a bill to amend the Internal (e) APPLICABILITY OF TITLE 23.—Funds contingent upon a GATT agreement Revenue Code of 1986 to allow the alco- made available under this section shall be which would eliminate export subsidies hol fuels credit to be allocated to pa- available for obligation in the manner pro- and price supports in other countries of trons of a cooperative in certain cases. vided for funds apportioned under chapter 1 the world. While I firmly believe that S. 1271 of title 23, United States Code, except that the free market should be allowed to At the request of Mr. CRAIG, the the Federal share of the cost of an project work, it does not make sense to put our names of the Senator from Virginia under this section shall be determined in ac- producers at a competitive disadvan- cordance with this section and the funds [Mr. WARNER] and the Senator from shall remain available until expended. Funds tage in the world subsidized market. Wyoming [Mr. SIMPSON] were added as authorized by this section shall not be sub- I can’t speak for the rest of the coun- cosponsors of S. 1271 a bill to amend ject to any obligation limitation. try, but Michigan sugar beet producers the Nuclear Waste Policy Act of 1982. (f) AUTHORIZATION OF APPROPRIATIONS.— are some of the most efficient produc- SENATE JOINT RESOLUTION 22 There are authorized to be appropriated from ers in the world, yet without a U.S. At the request of Mr. GRAMS, the the Highway Trust Fund established by sec- sugar program they would most likely name of the Senator from Tennessee tion 9503 of the Internal Revenue Code of 1986 find it impossible to compete against (other than the Mass Transit Account) to [Mr. FRIST] was added as a cosponsor of less efficient foreign producers who are carry out the project $44,000,000, to remain Senate Joint Resolution 22, a joint res- more highly subsidized. Other coun- available until expended. olution proposing an amendment to the tries subsidize their sugar at a level so In section 23(b)(2) of the Internal Revenue Constitution of the United States to high that they are able to dump the ex- Code of 1986, as added by section 12001(a), require a balanced budget. strike ‘‘$110,000’’ in subparagraph (A) and in- cess sugar on the world market at a SENATE RESOLUTION 146 sert ‘‘$100,000’’ and strike ‘‘$55,000’’ in sub- price well below the world’s cost of pro- paragraph (C) and insert ‘‘$50,000’’. duction. Unilateral elimination of our At the request of Mr. JOHNSTON, the sugar program would put the best pro- name of the Senator from California Mr. FORD. Mr. President, over the ducers of sugar in the world at a com- [Mrs. FEINSTEIN] was added as a co- next few days, we will be debating the petitive disadvantage to less efficient sponsor of Senate Resolution 146, a res- logic of a $245 billion tax break that producers. This simply does not make olution designating the week beginning adds to the deficit and cuts dan- sense. November 19, 1995, and the week begin- gerously deep into critical programs We cannot give up the hope that the ning on November 24, 1996, as ‘‘National for middle-income Americans—from world will have a free sugar market. Family Week,’’ and for other purposes. Medicare to education. My Republican Through the GATT, we have begun and f colleagues will justify adding to the will continue to work diligently toward deficit and making those cuts by strik- that goal. I am hopeful that my legisla- AMENDMENTS SUBMITTED ing the familiar refrain that these tax tion will prompt other Members of the breaks will boost the economy. House and Senate to contact the Ad- But Mr. President, those tax breaks THE BALANCED BUDGET ministration in favor of further GATT are not only jeopardizing important in- RECONCILIATION ACT OF 1995 talks that would move us closer to a vestments in our future economy like free world market for agriculture. education and job training, they’re jeopardizing critical infrastructure im- Until this occurs, however, we must FORD AMENDMENT NO. 2948 carefully examine the consequences of provements that mean much more to the steps we take to reform or elimi- (Ordered to lie on the table.) local economies than a tax break for nate our support programs so that we Mr. FORD submitted an amendment America’s wealthiest few. do not put our producers in a position intended to be proposed by him to the One of those infrastructure projects of weakness compared to other coun- bill (S. 1357) to provide for reconcili- is a bridge linking my home State of tries. Furthermore, we cannot simply ation pursuant to section 105 of the Kentucky with Indiana. Without a assume other countries would follow concurrent resolution on the budget for doubt, the Natcher Bridge would mean our lead if we were to eliminate our fiscal year 1996; as follows: much more to the local economies of sugar program. In fact, the result may At the end of title VI, add the following: Kentucky and Indiana than this tax be quite the opposite. Without a trade SEC. 6 . CONSTRUCTION OF NATCHER BRIDGE break. From the increased interstate agreement, other countries would have NEAR OWENSBORO, KENTUCKY. commerce to making the region more greater access to the U.S. market, (a) AUTHORIZATION.—The Secretary of attractive to future businesses, indus- Transportation may pay the Federal share of try, and tourism, the Natcher Bridge is helping to perpetuate these foreign the cost of a project to complete construc- subsidies rather than encourage their tion of the William H. Natcher Bridge near a long-term investment for every Ken- elimination. Owensboro, Kentucky. tuckian and Hossier. But, unfortu- Mr. President, I assure you that dur- (b) FEDERAL SHARE.—The Federal share of nately, it was sold down the river for a ing my tenure as a Member of this the cost of the project shall be 80 percent. tax break for a wealthy few. S 15688 CONGRESSIONAL RECORD — SENATE October 25, 1995 I have filed and had planned to offer ciently, know that building this bridge LEAHY AMENDMENTS NOS. 2951– an amendment to the Budget Rec- should come before providing a tax 2954 onciliation bill authorizing funding for break to those making $110,000. (Ordered to lie on the table.) the Natcher Bridge connecting Ken- Mr. LEAHY submitted four amend- tucky to Indiana. It would be offset by BROWN AMENDMENT NO. 2949 ments intended to be proposed by him reducing the Republicans’ $500 per to the bill S. 1357, supra; as follows— child tax credit from the proposed in- Mr. BROWN proposed an amendment AMENDMENT NO. 2951 come cap of $110,000 to $100,000. to the motion to commit proposed by Amend section 1109(1)(D) to read as fol- However, it’s my understanding that Mr. ROCKEFELLER to the bill S. 1357, the same Republicans who killed this lows— supra; as follows: ‘‘(D) by amending subsection (h) to read as bridge project, will also raise a point of Strike all after ‘‘Finance’’ and insert the follows— order against my amendment. That following: ‘‘With instructions to report the (h) FLOOD CONTROL.— means I would have to get a super ma- bill back to the Senate forthwith to include (1) IN GENERAL.—The Secretary may enter jority for approval of my amendment. the findings of the Trustees of the Federal into contracts in accordance with paragraph Without that huge road block, I think Insurance Trust Fund that, in order to save (2) with producers with crop acreage base on I could have persuaded my colleagues Medicare and to keep the Hospital Insurance farms with land that is frequently flooded. on the merits of finishing this project. Trust Fund solvent for future generations, (2) TERMS OF CONTRACT.—The contract de- That’s right. Not starting this Congress must address both the long-term scribed in paragraph (1) shall include the fol- lowing terms— project—but finishing this project. and short-term shortfalls in the Medicare program.’’ (A) With respect to the acres which are the It’s a little bit like the young officer subject to the contract, the producer shall who pointed to the place on the map he agree to— planned to have the troops cross the ABRAHAM AMENDMENT NO. 2950 ((i) the removal of crop acreage base; river. ‘‘Excellent,’’ remarked this supe- (ii) not build crop acreage base in future rior, ‘‘but your finger is not a bridge.’’ Mr. ABRAHAM proposed an amend- years; Well neither are two piers sticking out ment to the bill S. 1357, supra; as fol- (iii) not apply for crop insurance issued by of the Ohio River. lows: the Secretary or reinsured by the Secretary; Nearly $56 million in State and Fed- At the end of chapter 6 of title VII, insert (iv) comply with applicable wetlands and eral funds have been spent on this the following: highly erodible land conservation compli- ance requirements described in Title XII of bridge so far. Along with that financial SEC. . BENEFICIARY INCENTIVE PROGRAMS. the Food Security Act of 1985; commitment you’ll find the initial (a) PROGRAM TO COLLECT INFORMATION ON (v) not apply for any conservation program stages of a new 7.4 mile, four-lane sec- FRAUD AND ABUSE.— payments from the Secretary; tion of U.S. 60 that should—and I stress (1) ESTABLISHMENT OF PROGRAM.—Not later (vi) not apply for any disaster program should—connect with a 4.7 mile high- than 3 months after the date of the enact- benefits issued by the Secretary; and way leading to the bridge. ment of this Act, the Secretary of Health (vii) refund the payments with interest is- We began this bridge project back in and Human Services (hereinafter in this sec- sued under the contract to the Secretary, if 1988, because the current bridge was tion referred to as the ‘‘Secretary’’) shall es- the producer violates the terms of this con- tablish a program under which the Secretary deemed incapable of dealing with fu- tract or if the producer transfers the prop- shall encourage individuals to report to the erty to another party who violates the terms ture capacity, fated to become func- Secretary information on individuals and en- specified in this contract. tionally obsolete. Because of the seri- tities who are engaging or who have engaged (B) The Secretary shall agree to pay pro- ous capacity concerns, we had to find in acts or omissions which constitute ducers an amount not more than 95 percent the quickest and most efficient way to grounds for the imposition of a sanction of the projected benefits and subsidies pay- allocate funds—a demonstration under section 1128, section 1128A, or section able to crops planted on the acres from the project. Kentucky was very lucky to 1128B of the Social Security Act, or who have Commodity Credit Corporation and the Fed- have Congressman William Natcher otherwise engaged in fraud and abuse against eral Crop Insurance Corporation for the fis- the medicare program for which there is a working diligently to get yearly fund- cal years covered by the agreement during sanction provided under law. The program the period 1997 through 2002. ing for the bridge. shall discourage provision of, and not con- (3) COMMODITY CREDIT CORPORATION.—The In hindsight, it probably would have sider, information which is frivolous or oth- Secretary shall carry out the program au- been better to get total funding for the erwise not relevant or material to the impo- thorized by this subsection through the Com- bridge in just 1 year. But at the time, sition of such a sanction. modity Credit Corporation.’’ that would have been over $80 million (2) PAYMENT OF PORTION OF AMOUNTS COL- in Federal funds and Mr. Natcher just LECTED.—If an individual reports informa- AMENDMENT NO. 2952 wasn’t that way. He didn’t want to tion to the Secretary under the program es- (a) In section 1201(c)(2) by striking (A) and take any money away from other tablished under paragraph (1) which serves as inserting the following: States, and leave them in a pinch. He the basis for the collection by the Secretary ‘‘(A) IN GENERAL.—Section 1237 of the Food or the Attorney General of any amount of at Security Act of 1985 (16 U.S.C. 3837) is amend- just took what was essential to the least $100 (other than any amount paid as a bridge’s progress each year. ed— penalty under section 1128B of the Social Se- ‘‘(i) in subsection (b)— With his passing, the job of securing curity Act), the Secretary may pay a portion ‘‘(I) in paragraph (1) by striking ‘and’; funds became much harder, but cer- of the amount collected to the individual ‘‘(II) in paragraph (2) by— tainly not less worthy. Despite the fact (under procedures similar to those applicable ‘‘(aa) by striking ‘not less’ and inserting that it was not included in the House under section 7623 of the Internal Revenue ‘not more’; Transportation Appropriations bill last Code of 1986 to payments to individuals pro- ‘‘(bb) by striking ‘2000’ and inserting ‘2002’; year, I was able to secure the next in- viding information on violations of such and stallment. That’s because my col- Code). ‘‘(cc) by striking the period and inserting 6; leagues recognized at the time that the (b) PROGRAM TO COLLECT INFORMATION ON and’; and PROGRAM EFFICIENCY.— ‘‘(III) adding the following to the end: Natcher Bridge was a critical link in (1) ESTABLISHMENT OF PROGRAM.—Not later ‘(3) to the maximum extent possible during our national infrastructure. than 3 months after the date of the enact- the 1996 through 2002 calendar years, one- That hasn’t changed. And, ending ment of this Act, the Secretary shall estab- third of the acres in permanent easements, this project now—with nearly $56 mil- lish a program under which the Secretary one-third of the acres in 30 year easements, lion already invested—would be a con- shall encourage individuals to submit to the and one-third of the acres in restoration siderable waste of Federal and State Secretary suggestions on methods to im- cost-share agreements.’ ’’ funding, not to mention all but shut- prove the efficiency of the medicare pro- (b) In section 1201(c)(2) strike subparagraph ting the door to the economically im- gram. (B) and insert the following: portant I–64 corridor for these commu- (2) PAYMENT OF PORTION OF PROGRAM SAV- ‘‘(B) COST SHARE AGREEMENTS.—Section 1237A of the Food Security Act of 1985 (16 nities. INGS.—If an individual submits a suggestion to the Secretary under the program estab- U.S.C. 3837A) is amended by— While I will not be offering this ‘‘(i) amending the section heading to read amendment today, I will be offering it lished under paragraph (1) which is adopted by the Secretary and which results in sav- as follows: in the future. Because the communities ings to the program, the Secretary may ‘‘ ‘SEC. 1237A EASEMENTS AND AGREEMENTS’; on either side of the river, and those make a payment to the individual of such (ii) in subsection (f) striking, except in the businesses counting on that corridor amount as the Secretary considers appro- case of’ through ‘and the Secretary’; and for moving their goods safely and effi- priate. (ii) adding the following the end: October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15689 ‘‘ ‘(h) COST SHARE AGREEMENTS.—The Sec- by him to the bill S. 1357, supra; as fol- ‘‘(2) COORDINATION WITH HEALTH PLANS.—In retary may enroll land into wetland reserve lows: carrying out the program established under through agreements which require the land- paragraph (1), the Secretary and the Attor- AMENDMENT NO. 2955 owner to restore wetlands on the land, pro- ney General shall consult with, and arrange vided the agreement does not provide the Subsection (e) of Section 2123 is amended for the sharing of data with representatives Secretary with an easement. by adding ‘‘, other than a program operated of health plans. ‘‘(C) COST SHARE AND TECHNICAL ASSIST- or financed by the Indian Health Service,’’ ‘‘(3) GUIDELINES.— ANCE.—Section 1237C(b) of the Food Security after ‘‘other federally operated or financed ‘‘(A) IN GENERAL.—The Secretary and the Act of 1985 (16 U.S.C. 3837c(b)) is amended to health care program’’. Attorney General shall issue guidelines to read as follows: As amended, the subsection would read: carry out the program under paragraph (1). (e) MEDICAID AS SECONDARY PAYER.—Ex- ‘(b) COST SHARE AND TECHNICAL ASSIST- The provisions of sections 553, 556, and 557 of cept as otherwise provided by law, no pay- ANCE.— title 5, United States Code, shall not apply in ment shall be made to a State under this ‘(1) For easements entered into from the the issuance of such guidelines. part for expenditures for medical assistance 1991 through 1995 calendar years in making ‘‘(B) INFORMATION GUIDELINES.— provided for an individual under its medicaid cost share payments under subsection (a)(1), ‘‘(i) IN GENERAL.—Such guidelines shall in- plan to the extent that payment has been the Secretary shall pay the owner an amount clude guidelines relating to the furnishing of made or can reasonably be expected to be that is not less than 50 percent but not more information by health plans, providers, and made promptly (as determined in accordance than 75 percent of eligible costs with respect others to enable the Secretary and the At- with regulations) under any other federally to an easement which is not permanent, and torney General to carry out the program (in- operated or financed health care program, not less than 75 percent but not more than cluding coordination with health plans under other than a program operated or financed 100 percent of eligible costs with respect to a paragraph (2)). by the Indian Health Service, as identified permanent easement. ‘‘(ii) CONFIDENTIALITY.—Such guidelines by the Secretary. For purposes of this sub- ‘(2) For easements and agreements entered shall include procedures to assure that such section, rules similar to the rules for over- into from the 1996 through 2002 calendar information is provided and utilized in a payments under section 2122(b) shall apply. years, in making cost share payments the manner that appropriately protects the con- Secretary shall— fidentiality of the information and the pri- AMENDMENT NO. 2956 (A) pay the owner an amount that is not vacy of individuals receiving health care less than 75 percent but not more than 100 On Pages 764 and 765, section 2106, Medicaid services and items. percent of the eligible costs with respect to Task Force—under subsection (c) Advisory ‘‘(iii) QUALIFIED IMMUNITY FOR PROVIDING preeminent easements and cost share agree- Group for the Task Force, add new number INFORMATION.—The provisions of section ments; (14) to read: ‘‘(14) AMERICAN OSTEOPATHIC AS- 1157(a) (relating to limitation on liability) (B) pay the owner an amount that is not SOCIATION’’. shall apply to a person providing informa- less than 50 percent, but not more than 75 Redesignate old No. 14 to be No. 15 tion to the Secretary or the Attorney Gen- percent of the eligible costs with respect to Redesignate old No. 15 to be No. 16 eral in conjunction with their performance 30 year easements; and Redesignate old No. 16 to be No. 17 of duties under this section. Redesignate old No. 17 to be No. 18. (C) provide owners technical assistance to ‘‘(4) ENSURING ACCESS TO DOCUMENTATION.— assist land owners in complying with the The Inspector General of the Department of terms of easements and agreements.’’ HARKIN AMENDMENT NO. 2957 Health and Human Services is authorized to ‘‘(C) AGREEMENTS— Mr. HARKIN proposed an amendment exercise such authority described in para- ‘(g) EASEMENTS AND AGREEMENTS.—The graphs (3) through (9) of section 6 of the In- Secretary shall enroll lands in the wetland to the bill S. 1357, supra; as follows: spector General Act of 1978 (5 U.S.C. App.) as reserve through easements and agreements Strike all after the word ‘‘SEC.’’ on page 1 necessary with respect to the activities in accordance with this subsection. line 3 and insert the following: under the fraud and abuse control program ‘(1) EASEMENTS.—The Secretary may enroll SEC. . The following provisions shall con- established under this subsection. land into wetland reserve through the pur- stitute all of the provisions regarding Medi- ‘‘(5) AUTHORITY OF INSPECTOR GENERAL.— chase of easements as provided for in section care Fraud and Abuse in Title VII of this Nothing in this Act shall be construed to di- 1237A. bill: minish the authority of any Inspector Gen- ‘(2) AGREEMENTS.—The Secretary may en- CHAPTER 6—HEALTH CARE FRAUD AND eral, including such authority as provided in roll land into the wetland reserve through ABUSE PREVENTION the Inspector General Act of 1978 (5 U.S.C. agreements which require the landowner to SEC. 7100. SHORT TITLE. App.). restore wetlands on the land, provided the This chapter may be cited as the ‘‘Health ‘‘(b) ADDITIONAL USE OF FUNDS BY INSPEC- agreement does not provide the Secretary Care Fraud and Abuse Prevention Act of TOR GENERAL.— with an easement. Through such agreements 1995’’. ‘‘(1) REIMBURSEMENTS FOR INVESTIGA- the Secretary shall provide landowners cost TIONS.—The Inspector General of the Depart- share and technical assistance in accordance Subchapter A—Fraud and Abuse Control ment of Health and Human Services is au- with section 1237C(b).’ ’’ Program thorized to receive and retain for current use (c) In section 1201(c)(2) strike subparagraph SEC. 7101. FRAUD AND ABUSE CONTROL PRO- reimbursement for the costs of conducting (B) and insert the following: GRAM. investigations and audits and for monitoring ‘‘(B) COMPENSATION.—Section 1237A(f) of (a) ESTABLISHMENT OF PROGRAM.—Title XI compliance plans when such costs are or- the Food Security Act of 1985 (16 U.S.C. (42 U.S.C. 1301 et seq.) is amended by insert- dered by a court, voluntarily agreed to by 3837a(f)) is amended by striking’, except in ing after section 1128B the following new sec- the payer, or otherwise. the case of through and the Secretary’.’’ tion: ‘‘(2) CREDITING.—Funds received by the In- ‘‘FRAUD AND ABUSE CONTROL PROGRAM AMENDMENT NO. 2953 spector General under paragraph (1) as reim- Amend section 1201(b) by adding the fol- ‘‘SEC. 1128C. (a) ESTABLISHMENT OF PRO- bursement for costs of conducting investiga- lowing after ‘‘To receive cost sharing or in- GRAM.— tions shall be deposited to the credit of the ventive payments, or technical assistance, ‘‘(1) IN GENERAL.—Not later than January appropriation from which initially paid, or participating operators shall comply with all 1, 1996, the Secretary, acting through the Of- to appropriations for similar purposes cur- terms and conditions of the contract and a fice of the Inspector General of the Depart- rently available at the time of deposit, and plan, as established by the Secretary’’. ment of Health and Human Services, and the shall remain available for obligation for 1 ‘(3) CONTRACT EFFECTIVE DATE.—A contract Attorney General shall establish a pro- year from the date of the deposit of such between an operator and the Secretary under gram— funds. this chapter shall become effective on Octo- ‘‘(A) to coordinate Federal, State, and local law enforcement programs to control ‘‘(c) HEALTH PLAN DEFINED.—For purposes ber 1st following the date the contract is of this section, the term ‘health plan’ means fully entered into.’ ’’ fraud and abuse with respect to the delivery of and payment for health care in the United a plan or program that provides health bene- fits, whether directly, through insurance, or AMENDMENT NO. 2954 States, ‘‘(B) to conduct investigations, audits, otherwise, and includes— Amend section 1106 by striking ‘‘for cal- evaluations, and inspections relating to the ‘‘(1) a policy of health insurance; endar year 1996, subject to subsection (d).’’ delivery of and payment for health care in ‘‘(2) a contract of a service benefit organi- through ‘‘beginning January 1, 1996, and end- the United States, zation; and ing December 31, 2002’’. ‘‘(C) to facilitate the enforcement of the ‘‘(3) a membership agreement with a health provisions of sections 1128, 1128A, and 1128B maintenance organization or other prepaid GRASSLEY AMENDMENTS NOS. and other statutes applicable to health care health plan.’’. 2955–2956 fraud and abuse, and (b) ESTABLISHMENT OF HEALTH CARE FRAUD ‘‘(D) to provide for the modification and es- AND ABUSE CONTROL ACCOUNT IN FEDERAL (Ordered to lie on the table.) tablishment of safe harbors and to issue in- HOSPITAL INSURANCE TRUST FUND.—Section Mr. GRASSLEY submitted two terpretative rulings and special fraud alerts 1817 (42 U.S.C. 1395i) is amended by adding at amendments intended to be proposed pursuant to section 1128D. the end the following new subsection: S 15690 CONGRESSIONAL RECORD — SENATE October 25, 1995

‘‘(k) HEALTH CARE FRAUD AND ABUSE CON- travel and training) of the administration (x) in paragraph (4) (as redesignated), by TROL ACCOUNT.— and operation of the health care fraud and striking ‘‘Paragraphs (1) and (2)’’ and insert- ‘‘(1) ESTABLISHMENT.—There is hereby es- abuse control program established under sec- ing ‘‘Paragraphs (1), (2), and (3)’’; and tablished in the Trust Fund an expenditure tion 1128C(a), including the costs of— (xi) by inserting after paragraph (2) the fol- account to be known as the ‘Health Care ‘‘(I) prosecuting health care matters lowing new paragraph: Fraud and Abuse Control Account’ (in this (through criminal, civil, and administrative ‘‘(3)(A) The Attorney General may bring an subsection referred to as the ‘Account’). proceedings); action in the district courts to impose upon ‘‘(2) APPROPRIATED AMOUNTS TO TRUST ‘‘(II) investigations; any person who carries out any activity in FUND.— ‘‘(III) financial and performance audits of violation of this subsection a civil penalty of ‘‘(A) IN GENERAL.—There are hereby appro- health care programs and operations; not less than $25,000 and not more than priated to the Trust Fund— ‘‘(IV) inspections and other evaluations; $50,000 for each such violation, plus three ‘‘(i) such gifts and bequests as may be and times the total remuneration offered, paid, made as provided in subparagraph (B); ‘‘(V) provider and consumer education re- solicited, or received. ‘‘(ii) such amounts as may be deposited in garding compliance with the provisions of ‘‘(B) A violation exists under this para- the Trust Fund as provided in sections title XI. graph if one or more purposes of the remu- 7141(b) and 7142(c) of the Balanced Budget ‘‘(ii) USE BY STATE MEDICAID FRAUD CON- neration is unlawful, and the damages shall Reconciliation Act of 1995, and title XI; and TROL UNITS FOR INVESTIGATION REIMBURSE- be the full amount of such remuneration. ‘‘(iii) such amounts as are transferred to MENTS.—To reimburse the various State medicaid fraud control units upon request to ‘‘(C) Section 3731 of title 31, United States the Trust Fund under subparagraph (C). Code, and the Federal Rules of Civil Proce- ‘‘(B) AUTHORIZATION TO ACCEPT GIFTS.—The the Secretary for the costs of the activities authorized under section 2134(b). dure shall apply to actions brought under Trust Fund is authorized to accept on behalf this paragraph. of the United States money gifts and be- ‘‘(4) ANNUAL REPORT.—The Secretary and ‘‘(D) The provisions of this paragraph do quests made unconditionally to the Trust the Attorney General shall submit jointly an not affect the availability of other criminal Fund, for the benefit of the Account or any annual report to Congress on the amount of and civil remedies for such violations.’’. activity financed through the Account. revenue which is generated and disbursed, (F) In subsection (c), by inserting ‘‘(as de- ‘‘(C) TRANSFER OF AMOUNTS.—The Manag- and the justification for such disbursements, fined in section 1128(h))’’ after ‘‘a State ing Trustee shall transfer to the Trust Fund, by the Account in each fiscal year.’’. health care program’’. under rules similar to the rules in section SEC. 7102. APPLICATION OF CERTAIN HEALTH (G) By adding at the end the following new 9601 of the Internal Revenue Code of 1986, an ANTI-FRAUD AND ABUSE SANCTIONS TO FRAUD AND ABUSE AGAINST subsections: amount equal to the sum of the following: FEDERAL HEALTH PROGRAMS. ‘‘(f) For purposes of this section, the term ‘‘(i) Criminal fines recovered in cases in- (a) CRIMES.— volving a Federal health care offense (as de- ‘Federal health care program’ means— (1) SOCIAL SECURITY ACT.—Section 1128B (42 ‘‘(1) any plan or program that provides fined in section 982(a)(6)(B) of title 18, United U.S.C. 1320a–7b) is amended as follows: States Code). health benefits, whether directly, through (A) In the heading, by striking ‘‘MEDICARE insurance, or otherwise, which is funded, in ‘‘(ii) Civil monetary penalties and assess- OR STATE HEALTH CARE PROGRAMS’’ and in- ments imposed in health care cases, includ- whole or in part, by the United States Gov- serting ‘‘FEDERAL HEALTH CARE PROGRAMS’’. ernment; or ing amounts recovered under titles XI, (B) In subsection (a)(1), by striking ‘‘a pro- XVIII, and XXI, and chapter 38 of title 31, ‘‘(2) any State health care program, as de- gram under title XVIII or a State health fined in section 1128(h). United States Code (except as otherwise pro- care program (as defined in section 1128(h))’’ ‘‘(g)(1) The Secretary and Administrator of vided by law). and inserting ‘‘a Federal health care pro- the departments and agencies with a Federal ‘‘(iii) Amounts resulting from the forfeit- gram’’. health care program may conduct an inves- ure of property by reason of a Federal health (C) In subsection (a)(5), by striking ‘‘a pro- tigation or audit relating to violations of care offense. gram under title XVIII or a State health this section and claims within the jurisdic- ‘‘(iv) Penalties and damages obtained and care program’’ and inserting ‘‘a Federal tion of other Federal departments or agen- otherwise creditable to miscellaneous re- health care program’’. cies if the following conditions are satisfied: ceipts of the general fund of the Treasury ob- (D) In the second sentence of subsection ‘‘(A) The investigation or audit involves tained under sections 3729 through 3733 of (a)— primarily claims submitted to the Federal title 31, United States Code (known as the (i) by striking ‘‘a State plan approved False Claims Act), in cases involving claims under title XIX’’ and inserting ‘‘a Federal health care programs of the department or related to the provision of health care items health care program’’; and agency conducting the investigation or and services (other than funds awarded to a (ii) by striking ‘‘the State may at its op- audit. relator, for restitution or otherwise author- tion (notwithstanding any other provision of ‘‘(B) The Secretary or Administrator of the ized by law). that title or of such plan)’’ and inserting department or agency conducting the inves- ‘‘(3) APPROPRIATED AMOUNTS TO ACCOUNT.— ‘‘the administrator of such program may at tigation or audit gives notice and an oppor- ‘‘(A) IN GENERAL.—There are hereby appro- its option (notwithstanding any other provi- tunity to participate in the investigation or priated to the Account from the Trust Fund sion of such program)’’. audit to the Inspector General of the depart- such sums as the Secretary and the Attorney (E) In subsection (b)— ment or agency with primary jurisdiction General certify are necessary to carry out (i) by striking ‘‘and willfully’’ each place it over the Federal health care programs to the purposes described in subparagraph (B), appears; which the claims were submitted. to be available without further appropria- (ii) by striking ‘‘$25,000’’ each place it ap- ‘‘(2) If the conditions specified in para- tion, in an amount— pears and inserting ‘‘$50,000’’; graph (1) are fulfilled, the Inspector General ‘‘(i) with respect to activities of the Office (iii) by striking ‘‘title XVIII or a State of the department or agency conducting the of the Inspector General of the Department health care program’’ each place it appears investigation or audit may exercise all pow- of Health and Human Services and the Fed- and inserting ‘‘Federal health care pro- ers granted under the Inspector General Act eral Bureau of Investigations in carrying out gram’’; of 1978 with respect to the claims submitted such purposes, not less than— (iv) in paragraph (1) in the matter preced- to the other departments or agencies to the ‘‘(I) for fiscal year 1996, $110,000,000, ing subparagraph (A), by striking ‘‘kind—’’ same manner and extent as provided in that ‘‘(II) for fiscal year 1997, $140,000,000, and inserting ‘‘kind with intent to be influ- Act with respect to claims submitted to such ‘‘(III) for fiscal year 1998, $160,000,000, enced—’’; departments or agencies.’’. ‘‘(IV) for fiscal year 1999, $185,000,000, (v) in paragraph (1)(A), by striking ‘‘in re- (2) IDENTIFICATION OF COMMUNITY SERVICE ‘‘(V) for fiscal year 2000, $215,000,000, turn for referring’’ and inserting ‘‘to refer’’; OPPORTUNITIES.—Section 1128B (42 U.S.C. ‘‘(VI) for fiscal year 2001, $240,000,000, and (vi) in paragraph (1)(B), by striking ‘‘in re- 1320a–7b) is further amended by adding at the ‘‘(VII) for fiscal year 2002, $270,000,000; and turn for purchasing, leasing, ordering, or ar- end the following new subsection: ‘‘(ii) with respect to all activities (includ- ranging for or recommending’’ and inserting ‘‘(h) The Secretary may— ing the activities described in clause (i)) in ‘‘to purchase, lease, order, or arrange for or ‘‘(1) in consultation with State and local carrying out such purposes, not more than— recommend’’; health care officials, identify opportunities ‘‘(I) for fiscal year 1996, $200,000,000, and (vii) in paragraph (2) in the matter pro- for the satisfaction of community service ob- ‘‘(II) for each of the fiscal years 1997 ceeding subparagraph (A), by striking ‘‘to in- ligations that a court may impose upon the through 2002, the limit for the preceding fis- duce such person’’ and inserting ‘‘with intent conviction of an offense under this section, cal year, increased by 15 percent; and to influence such person’’; and ‘‘(iii) for each fiscal year after fiscal year (viii) by adding at the end of paragraphs (1) ‘‘(2) make information concerning such op- 2002, within the limits for fiscal year 2002 as and (2) the following sentence: ‘‘A violation portunities available to Federal and State determined under clauses (i) and (ii). exists under this paragraph if one or more law enforcement officers and State and local ‘‘(B) USE OF FUNDS.—The purposes de- purposes of the remuneration is unlawful health care officials.’’. scribed in this subparagraph are as follows: under this paragraph.’’; (b) EFFECTIVE DATE.—The amendments ‘‘(i) GENERAL USE.—To cover the costs (in- (ix) by redesignating paragraph (3) as para- made by this section shall take effect on cluding equipment, salaries and benefits, and graph (4); January 1, 1996. October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15691 SEC. 7103. HEALTH CARE FRAUD AND ABUSE (I) Any other factors the Secretary deems (A) whether and to what extent the prac- PROVIDER GUIDANCE. appropriate in the interest of preventing tices that would be identified in the special (a) SOLICITATION AND PUBLICATION OF MODI- fraud and abuse in Federal health care pro- fraud alert may result in any of the con- FICATIONS TO EXISTING SAFE HARBORS AND grams (as so defined). sequences described in subsection (a)(2); and NEW SAFE HARBORS.— (b) INTERPRETIVE RULINGS.— (B) the volume and frequency of the con- (1) IN GENERAL.— (1) IN GENERAL.— duct that would be identified in the special (A) SOLICITATION OF PROPOSALS FOR SAFE (A) REQUEST FOR INTERPRETIVE RULING.— fraud alert. HARBORS.—Not later than January 1, 1996, Any person may present, at any time, a re- and not less than annually thereafter, the quest to the Inspector General for a state- SEC. 7104. MEDICARE/MEDICAID BENEFICIARY PROTECTION PROGRAM. Secretary shall publish a notice in the Fed- ment of the Inspector General’s current in- eral Register soliciting proposals, which will terpretation of the meaning of a specific as- (a) ESTABLISHMENT OF PROGRAM.—Not later be accepted during a 60-day period, for— pect of the application of sections 1128A and than January 1, 1996, the Secretary (through (i) modifications to existing safe harbors 1128B of the Social Security Act (42 U.S.C. the Administrator of the Health Care Fi- issued pursuant to section 14(a) of the Medi- 1320a–7a and 1320a–7b) (in this section re- nancing Administration and the Inspector care and Medicaid Patient and Program Pro- ferred to as an ‘‘interpretive ruling’’). General of the Department of Health and tection Act of 1987 (42 U.S.C. 1320a–7b note); (B) ISSUANCE AND EFFECT OF INTERPRETIVE Human Services) shall establish the Medi- (ii) additional safe harbors specifying pay- RULING.— care/Medicaid Beneficiary Protection Pro- ment practices that shall not be treated as a (i) IN GENERAL.—If appropriate, the Inspec- gram. Under such program the Secretary criminal offense under section 1128B(b) of the tor General shall in consultation with the shall— Social Security Act (42 U.S.C. 1320a–7b(b)) Attorney General, issue an interpretive rul- (1) educate medicare and medicaid bene- and shall not serve as the basis for an exclu- ing not later than 120 days after receiving a ficiaries regarding— sion under section 1128(b)(7) of such Act (42 request described in subparagraph (A). Inter- (A) medicare and medicaid program cov- U.S.C. 1320a–7(b)(7)); pretive rulings shall not have the force of erage; (iii) interpretive rulings to be issued pursu- law and shall be treated as an interpretive (B) fraudulent and abusive practices; ant to subsection (b); and rule within the meaning of section 553(b) of (C) medically unnecessary health care (iv) special fraud alerts to be issued pursu- title 5, United States Code. All interpretive items and services; and ant to subsection (c). rulings issued pursuant to this clause shall (D) substandard health care items and (B) PUBLICATION OF PROPOSED MODIFICA- be published in the Federal Register or oth- services; TIONS AND PROPOSED ADDITIONAL SAFE HAR- erwise made available for public inspection. (2) identify and publicize fraudulent and BORS.—After considering the proposals de- (ii) REASONS FOR DENIAL.—If the Inspector abusive practices with respect to the deliv- scribed in clauses (i) and (ii) of subparagraph General does not issue an interpretive ruling ery of health care items and services; and (A), the Secretary, in consultation with the in response to a request described in sub- (3) establish a procedure for the reporting Attorney General, shall publish in the Fed- paragraph (A), the Inspector General shall of fraudulent and abusive health care provid- eral Register proposed modifications to ex- notify the requesting party of such decision ers, practitioners, claims, items, and serv- isting safe harbors and proposed additional not later than 120 days after receiving such a ices to appropriate law enforcement and safe harbors, if appropriate, with a 60-day request and shall identify the reasons for payer agencies. comment period. After considering any pub- such decision. lic comments received during this period, (b) RECOGNITION AND PUBLICATION OF CON- (2) CRITERIA FOR INTERPRETIVE RULINGS.— the Secretary shall issue final rules modify- TRIBUTIONS.—The program established by the (A) IN GENERAL.—In determining whether ing the existing safe harbors and establish- Secretary under this section shall recognize to issue an interpretive ruling under para- ing new safe harbors, as appropriate. and publicize significant contributions made graph (1)(B), the Inspector General may con- (C) REPORT.—The Inspector General of the by individual health care patients toward Department of Health and Human Services sider— the combating of health care fraud and (in this section referred to as the ‘‘Inspector (i) whether and to what extent the request abuse. identifies an ambiguity within the language General’’) shall, in an annual report to Con- (c) DISSEMINATION OF INFORMATION.—The of the statute, the existing safe harbors, or gress or as part of the year-end semiannual Secretary shall provide for the broad dis- previous interpretive rulings; and report required by section 5 of the Inspector semination of information regarding the (ii) whether the subject of the requested in- General Act of 1978 (5 U.S.C. App.), describe Medicare/Medicaid Beneficiary Protection terpretive ruling can be adequately ad- the proposals received under clauses (i) and Program. (ii) of subparagraph (A) and explain which dressed by interpretation of the language of proposals were included in the publication the statute, the existing safe harbor rules, or SEC. 7105. MEDICARE BENEFIT QUALITY ASSUR- ANCE. described in subparagraph (B), which propos- previous interpretive rulings, or whether the als were not included in that publication, request would require a substantive ruling (a) IN GENERAL.—Part D of title XVIII (42 and the reasons for the rejection of the pro- (as defined in section 552 of title 5, United U.S.C. 1395 et seq.), as redesignated in sec- posals that were not included. States Code) not authorized under this sub- tion 7003, is amended by inserting after sec- (2) CRITERIA FOR MODIFYING AND ESTABLISH- section. tion 1888 the following new section: ING SAFE HARBORS.—In modifying and estab- (B) NO RULINGS ON FACTUAL ISSUES.—The ‘‘MEDICARE BENEFIT INTEGRITY SYSTEM lishing safe harbors under paragraph (1)(B), Inspector General shall not give an interpre- the Secretary may consider the extent to tive ruling on any factual issue, including ‘‘SEC. 1889. (a) APPROPRIATION.—There are which providing a safe harbor for the speci- the intent of the parties or the fair market appropriated from the Federal Hospital In- fied payment practice may result in any of value of particular leased space or equip- surance Trust Fund and the Federal Supple- the following: ment. mentary Medical Insurance Trust Fund for (A) An increase or decrease in access to (c) SPECIAL FRAUD ALERTS.— each fiscal year such amounts as are nec- health care services. (1) IN GENERAL.— essary to carry out the benefit quality assur- (B) An increase or decrease in the quality (A) REQUEST FOR SPECIAL FRAUD ALERTS.— ance program activities described in sub- of health care services. Any person may present, at any time, a re- section (b), subject to subsections (c) and (d). (C) An increase or decrease in patient free- quest to the Inspector General for a notice ‘‘(b) ACTIVITIES DESCRIBED.—The benefit dom of choice among health care providers. which informs the public of practices which quality assurance program activities de- (D) An increase or decrease in competition the Inspector General considers to be suspect scribed in this subsection are as follows: among health care providers. or of particular concern under section ‘‘(1) Review of activities of providers of (E) An increase or decrease in the ability 1128B(b) of the Social Security Act (42 U.S.C. services or other persons in connection with of health care facilities to provide services in 1320a–7b(b)) (in this subsection referred to as this title, including medical and utilization medically underserved areas or to medically a ‘‘special fraud alert’’). underserved populations. (B) ISSUANCE AND PUBLICATION OF SPECIAL review and fraud review. (F) An increase or decrease in the cost to FRAUD ALERTS.—Upon receipt of a request de- ‘‘(2) Audit of cost reports. Federal health care programs (as defined in scribed in subparagraph (A), the Inspector ‘‘(3) Determinations as to whether pay- section 1128B(f) of the Social Security Act (42 General shall investigate the subject matter ment should not be, or should not have been, U.S.C. 1320a–7b(f)). of the request to determine whether a special made under this title by reason of section (G) An increase or decrease in the poten- fraud alert should be issued. If appropriate, 1862(b), and recovery of payments that tial overutilization of health care services. the Inspector General shall issue a special should not have been made. (H) The existence or nonexistence of any fraud alert in response to the request. All ‘‘(4) Education of providers of services, potential financial benefit to a health care special fraud alerts issued pursuant to this beneficiaries, and other persons with respect professional or provider which may vary subparagraph shall be published in the Fed- to payment integrity and benefit quality as- based on their decisions of— eral Register. surance issues. (i) whether to order a health care item or (2) CRITERIA FOR SPECIAL FRAUD ALERTS.— ‘‘(c) AMOUNTS SPECIFIED.—The amount ap- service; or In determining whether to issue a special propriated under subsection (a) for a fiscal (ii) whether to arrange for a referral of fraud alert upon a request described in para- year is as follows: health care items or services to a particular graph (1), the Inspector General may con- ‘‘(1) For fiscal year 1996, such amount shall practitioner or provider. sider— be $525,000,000. S 15692 CONGRESSIONAL RECORD — SENATE October 25, 1995

‘‘(2) For fiscal year 1997, such amount shall sions of section 1153(e)(1) shall apply to con- (1) IN GENERAL.—Section 1128(a) (42 U.S.C. be $550,000,000. tracts and contracting authority under this 1320a–7(a)), as amended by subsection (a), is ‘‘(3) For fiscal year 1998, such amount shall section, except that competitive procedures amended by adding at the end the following be $575,000,000. must be used when entering into new con- new paragraph: ‘‘(4) For fiscal year 1999, such amount shall tracts under this section, or at any other ‘‘(4) FELONY CONVICTION RELATING TO CON- be $600,000,000. time when it is in the best interests of the TROLLED SUBSTANCE.—Any individual or en- ‘‘(5) For fiscal year 2000, such amount shall United States. A contract under this section tity that has been convicted after the date of be $619,000,000. may be renewed from term to term without the enactment of the Medicare Improvement ‘‘(6) For fiscal year 2001 and each succeed- regard to any provision of law requiring and Solvency Protection Act of 1995, under ing fiscal year, the greater of— competition if the contractor has met or ex- Federal or State law, of a criminal offense ‘‘(A) $619,000,000 increased by a percentage ceeded the performance requirements estab- consisting of a felony relating to the unlaw- equal to the percentage increase in expendi- lished in the current contract. ful manufacture, distribution, prescription, tures under this title (other than expendi- ‘‘(c) LIMITATIONS.— or dispensing of a controlled substance.’’. tures pursuant to this section) for the pre- ‘‘(1) IN GENERAL.—In carrying out this sec- (2) CONFORMING AMENDMENT.—Section ceding fiscal year over fiscal year 1999; or tion, the Secretary may not enter into a con- 1128(b)(3) (42 U.S.C. 1320a–7(b)(3)) is amend- ‘‘(B) an amount equal to the aggregate tract with an organization or other entity if ed— amount expended for activities described in the Secretary determines that such organi- (A) in the heading, by striking ‘‘CONVIC- subsection (b) in fiscal year 2000, increased, zation’s or entity’s financial holdings, inter- TION’’ and inserting ‘‘MISDEMEANOR CONVIC- as determined by the Secretary, to reflect— ests, or relationships would interfere with its TION’’; and ‘‘(i) inflation; and ability to perform the functions to be re- (B) by striking ‘‘criminal offense’’ and in- ‘‘(ii) any costs attributable to oversight re- quired by the contract in an effective and serting ‘‘criminal offense consisting of a mis- sponsibilities added with respect to periods impartial manner. demeanor’’. after fiscal year 2000. ‘‘(2) LIMITATION OF LIABILITY.—The Sec- SEC. 7111. ESTABLISHMENT OF MINIMUM PERIOD ‘‘(d) ALLOCATION OF PAYMENTS AMONG retary shall by regulation provide for the OF EXCLUSION FOR CERTAIN INDI- TRUST FUNDS.—The appropriations made limitation of a contractor’s liability for ac- VIDUALS AND ENTITIES SUBJECT TO under subsection (a) shall be allocated to tions taken to carry out a contract under PERMISSIVE EXCLUSION FROM MED- reasonably reflect the proportion of expendi- this section, and such regulations shall, to ICARE AND STATE HEALTH CARE tures associated with part A and part B.’’. the extent the Secretary finds appropriate, PROGRAMS. (b) EFFECTIVE DATE.—The amendment employ the same or comparable standards Section 1128(c)(3) (42 U.S.C. 1320a–7(c)(3)) is made by subsection (a) shall apply to obliga- and other substantive and procedural provi- amended by adding at the end the following tions incurred after fiscal year 1995. sions as are contained in section 1157.’’. new subparagraphs: ‘‘(D) In the case of an exclusion of an indi- SEC. 7106. MEDICARE BENEFIT INTEGRITY SYS- PART II—REVISIONS TO CURRENT vidual or entity under paragraph (1), (2), or TEM. SANCTIONS FOR FRAUD AND ABUSE (a) IN GENERAL.—Part D of title XVIII (42 (3) of subsection (b), the period of the exclu- U.S.C. 1395 et seq.), as redesignated in sec- SEC. 7110. MANDATORY EXCLUSION FROM PAR- sion shall be 3 years, unless the Secretary TICIPATION IN MEDICARE AND determines in accordance with published reg- tion 7003 and amended by section 7045, is STATE HEALTH CARE PROGRAMS. amended by inserting after section 1888 the ulations that a shorter period is appropriate (a) INDIVIDUAL CONVICTED OF FELONY RE- following new section: because of mitigating circumstances or that LATING TO HEALTH CARE FRAUD.— a longer period is appropriate because of ag- ‘‘MEDICARE BENEFIT INTEGRITY CONTRACTS (1) IN GENERAL.—Section 1128(a) (42 U.S.C. gravating circumstances. ‘‘SEC. 1890. (a) AUTHORITY TO CONTRACT.— 1320a–7(a)) is amended by adding at the end ‘‘(E) In the case of an exclusion of an indi- ‘‘(1) IN GENERAL.—In order to improve the the following new paragraph: vidual or entity under subsection (b)(4) or effectiveness of benefit quality assurance ac- ‘‘(3) FELONY CONVICTION RELATING TO (b)(5), the period of the exclusion shall not be tivities relating to programs under this title, HEALTH CARE FRAUD.—Any individual or en- less than the period during which the indi- and to enhance the Secretary’s capability to tity that has been convicted after the date of vidual’s or entity’s license to provide health carry out program safeguard functions and the enactment of the Medicare Improvement care is revoked, suspended, or surrendered, related education activities to avoid the im- and Solvency Protection Act of 1995, under or the individual or the entity is excluded or proper expenditure of assets of the Federal Federal or State law, in connection with the suspended from a Federal or State health Hospital Insurance Trust Fund and the Fed- delivery of a health care item or service or care program. eral Supplementary Medical Insurance Trust with respect to any act or omission in a ‘‘(F) In the case of an exclusion of an indi- Fund, the Secretary shall enter into con- health care program (other than those spe- vidual or entity under subsection (b)(6)(B), tracts with organizations or other entities cifically described in paragraph (1)) operated the period of the exclusion shall be not less having demonstrated capability to carry out by or financed in whole or in part by any than 1 year.’’. Federal, State, or local government agency, one or more of the activities described in SEC. 7112. PERMISSIVE EXCLUSION OF INDIVID- section 1889(b). The provisions of sections of a criminal offense consisting of a felony UALS WITH OWNERSHIP OR CON- 1816 and 1842 shall be inapplicable to con- relating to fraud, theft, embezzlement, TROL INTEREST IN SANCTIONED EN- tracts under this section. breach of fiduciary responsibility, or other TITIES. ‘‘(2) NUMBER OF CONTRACTS.—The Secretary financial misconduct.’’. Section 1128(b) (42 U.S.C. 1320a–7(b)) is shall determine the number of separate con- (2) CONFORMING AMENDMENT.—Paragraph amended by adding at the end the following tracts which are necessary to achieve, with (1) of section 1128(b) (42 U.S.C. 1320a–7(b)) is new paragraph: the maximum degree of efficiency and cost amended to read as follows: ‘‘(15) INDIVIDUALS CONTROLLING A SANC- effectiveness, the objectives of this section. ‘‘(1) CONVICTION RELATING TO FRAUD.—Any TIONED ENTITY.—Any individual who has a di- The Secretary may enter into contracts individual or entity that has been convicted rect or indirect ownership or control interest under this section at such time or times as after the date of the enactment of the Medi- of 5 percent or more, or an ownership or con- are appropriate so long as not later than the care Improvement and Solvency Protection trol interest (as defined in section 1124(a)(3)) fiscal year beginning October 1, 1998, and for Act of 1995, under Federal or State law— in, or who is an officer or managing em- each fiscal year thereafter, there are in ef- ‘‘(A) of a criminal offense consisting of a ployee (as defined in section 1126(b)) of, an fect contracts that, considered collectively, misdemeanor relating to fraud, theft, embez- entity— provide for benefit quality assurance activi- zlement, breach of fiduciary responsibility, ‘‘(A) that has been convicted of any offense ties with respect to all payments under this or other financial misconduct— described in subsection (a) or in paragraph title. ‘‘(i) in connection with the delivery of a (1), (2), or (3) of this subsection; or ‘‘(b) CONTRACT REQUIREMENTS.—A benefit health care item or service, or ‘‘(B) that has been excluded from participa- quality assurance contract entered into ‘‘(ii) with respect to any act or omission in tion under a program under title XVIII or under subsection (a) must provide for one or a health care program (other than those spe- under a State health care program.’’. more benefit quality assurance program ac- cifically described in subsection (a)(1)) oper- SEC. 7113. SANCTIONS AGAINST PRACTITIONERS tivities described in section 1889(b). Each ated by or financed in whole or in part by AND PERSONS FOR FAILURE TO such contract shall include an agreement by any Federal, State, or local government COMPLY WITH STATUTORY OBLIGA- the contractor to cooperate with the Inspec- agency; or TIONS. tor General of the Department of Health and ‘‘(B) of a criminal offense relating to fraud, (a) MINIMUM PERIOD OF EXCLUSION FOR Human Services, and the Attorney General, theft, embezzlement, breach of fiduciary re- PRACTITIONERS AND PERSONS FAILING TO and other law enforcement agencies, as ap- sponsibility, or other financial misconduct MEET STATUTORY OBLIGATIONS.— propriate, in the investigation and deter- with respect to any act or omission in a pro- (1) IN GENERAL.—The second sentence of rence of fraud and abuse in relation to this gram (other than a health care program) op- section 1156(b)(1) (42 U.S.C. 1320c–5(b)(1)) is title and in other cases arising out of the ac- erated by or financed in whole or in part by amended by striking ‘‘may prescribe)’’ and tivities described in such section, and shall any Federal, State, or local government inserting ‘‘may prescribe, except that such contain such other provisions as the Sec- agency.’’. period may not be less than 1 year)’’. retary finds necessary or appropriate to (b) INDIVIDUAL CONVICTED OF FELONY RE- (2) CONFORMING AMENDMENT.—Section achieve the purposes of this part. The provi- LATING TO CONTROLLED SUBSTANCE.— 1156(b)(2) (42 U.S.C. 1320c–5(b)(2)) is amended October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15693

by striking ‘‘shall remain’’ and inserting SEC. 7117. EFFECTIVE DATE. (2) FEES FOR DISCLOSURE.—The Secretary ‘‘shall (subject to the minimum period speci- The amendments made by this chapter may establish or approve reasonable fees for fied in the second sentence of paragraph (1)) shall take effect January 1, 1996. the disclosure of information in this remain’’. PART III—ADMINISTRATIVE AND database (other than with respect to re- (b) REPEAL OF ‘‘UNWILLING OR UNABLE’’ MISCELLANEOUS PROVISIONS quests by Federal agencies). The amount of CONDITION FOR IMPOSITION OF SANCTION.— SEC. 7120. ESTABLISHMENT OF THE HEALTH such a fee may be sufficient to recover the Section 1156(b)(1) (42 U.S.C. 1320c–5(b)(1)) is CARE FRAUD AND ABUSE DATA COL- full costs of carrying out the provisions of amended— LECTION PROGRAM. this section, including reporting, disclosure, (1) in the second sentence, by striking ‘‘and (a) GENERAL PURPOSE.—Not later than Jan- and administration. Such fees shall be avail- determines’’ and all that follows through uary 1, 1996, the Secretary shall establish a able to the Secretary or, in the Secretary’s ‘‘such obligations,’’; and national health care fraud and abuse data discretion to the agency designated under (2) by striking the third sentence. collection program for the reporting of final this section to cover such costs. SEC. 7114. SANCTIONS AGAINST PROVIDERS FOR adverse actions (not including settlements in ROTECTION ROM IABILITY FOR E EXCESSIVE FEES OR PRICES. which no findings of liability have been (e) P F L R - Section 1128(b)(6)(A) (42 U.S.C. 1320a– made) against health care providers, suppli- PORTING.—No person or entity shall be held 7(b)(6)(A)) is amended— ers, or practitioners as required by sub- liable in any civil action with respect to any (1) by inserting ‘‘(as specified by the Sec- section (b), with access as set forth in sub- report made as required by this section, retary in regulations)’’ after ‘‘substantially section (c). without knowledge of the falsity of the infor- in excess of such individual’s or entity’s (b) REPORTING OF INFORMATION.— mation contained in the report. usual charges’’; and (1) IN GENERAL.—Each government agency (f) DEFINITIONS AND SPECIAL RULES.—For (2) striking ‘‘(or, in applicable cases, sub- and health plan shall report any final ad- purposes of this section: stantially in excess of such individual’s or verse action (not including settlements in (1)(A) The term ‘‘final adverse action’’ in- entity’s costs)’’ and inserting ‘‘, costs or which no findings of liability have been cludes: fees’’. made) taken against a health care provider, (i) Civil judgments against a health care supplier, or practitioner. SEC. 7115. APPLICABILITY OF THE BANKRUPTCY provider or practitioner in Federal or State (2) INFORMATION TO BE REPORTED.—The in- CODE TO PROGRAM SANCTIONS. court related to the delivery of a health care formation to be reported under paragraph (1) (a) EXCLUSION OF INDIVIDUALS AND ENTITIES item or service. includes: FROM PARTICIPATION IN FEDERAL HEALTH (ii) Federal or State criminal convictions (A) The name and TIN (as defined in sec- CARE PROGRAMS.—Section 1128 (42 U.S.C. tion 7701(a)(41) of the Internal Revenue Code related to the delivery of a health care item 1320a–7) is amended by adding at the end the of 1986) of any health care provider, supplier, or service. following new subsection: or practitioner who is the subject of a final (iii) Actions by Federal or State agencies ‘‘(j) APPLICABILITY OF BANKRUPTCY PROVI- adverse action. responsible for the licensing and certifi- SIONS.—An exclusion imposed under this sec- (B) The name (if known) of any health care cation of health care providers, suppliers, tion is not subject to the automatic stay im- entity with which a health care provider, and licensed health care practitioners, in- posed under section 362 of title 11, United supplier, or practitioner is affiliated or asso- cluding— States Code.’’. ciated. (I) formal or official actions, such as rev- (b) CIVIL MONETARY PENALTIES.—Section (C) The nature of the final adverse action ocation or suspension of a license (and the 1128A(a) (42 U.S.C. 1320a–7a(a)) is amended by and whether such action is on appeal. length of any such suspension), reprimand, adding at the end the following sentence: (D) A description of the acts or omissions censure or probation, ‘‘An exclusion imposed under this subsection and injuries upon which the final adverse ac- (II) any other loss of license, or the right is not subject to the automatic stay imposed tion was based, and such other information to apply for or renew a license of the pro- under section 362 of title 11, United States as the Secretary determines by regulation is vider, supplier, or practitioner, whether by Code, and any penalties and assessments im- required for appropriate interpretation of in- operation of law, voluntary surrender, posed under this section shall be formation reported under this section. nonrenewability, or otherwise, or nondischargeable under the provisions of (3) CONFIDENTIALITY.—In determining what (III) any other negative action or finding such title.’’. information is required, the Secretary shall by such Federal or State agency that is pub- (c) OFFSET OF PAYMENTS TO INDIVIDUALS.— include procedures to assure that the privacy licly available information. Section 1892(a)(4) (42 U.S.C. 1395ccc(a)(4)) is of individuals receiving health care services (iv) Exclusion from participation in Fed- amended by adding at the end the following is appropriately protected. eral or State health care programs. sentence: ‘‘An exclusion imposed under para- (4) TIMING AND FORM OF REPORTING.—The (v) Any other adjudicated actions or deci- graph (2)(C)(ii) or paragraph (3)(B) is not sub- information required to be reported under sions that the Secretary shall establish by ject to the automatic stay imposed under this subsection shall be reported regularly regulation. section 362 of title 11, United States Code.’’ (but not less often than monthly) and in such (B) The term does not include any action SEC. 7116. AGREEMENTS WITH PEER REVIEW OR- form and manner as the Secretary pre- with respect to a malpractice claim. GANIZATIONS FOR MEDICARE CO- scribes. Such information shall first be re- ORDINATED CARE ORGANIZATIONS. (2) The terms ‘‘licensed health care practi- quired to be reported on a date specified by tioner’’, ‘‘licensed practitioner’’, and ‘‘prac- (a) DEVELOPMENT OF MODEL AGREEMENT.— the Secretary. Not later than July 1, 1996, the Secretary titioner’’ mean, with respect to a State, an (5) TO WHOM REPORTED.—The information individual who is licensed or otherwise au- shall develop a model of the agreement that required to be reported under this subsection an eligible organization with a risk-sharing thorized by the State to provide health care shall be reported to the Secretary. services (or any individual who, without au- contract under part C of title XVIII of the (c) DISCLOSURE AND CORRECTION OF INFOR- thority holds himself or herself out to be so Social Security Act must enter into with an MATION.— licensed or authorized). entity providing peer review services with (1) DISCLOSURE.—With respect to the infor- (3) The term ‘‘health care provider’’ means respect to services provided by the organiza- mation about final adverse actions (not in- a provider of services as defined in section tion under section 1856(d)(7)(A) of such Act, cluding settlements in which no findings of as added by section 7003(a). liability have been made) reported to the 1861(u) of the Social Security Act (42 U.S.C. (b) REPORT BY GAO.— Secretary under this section respecting a 1395x(u)), and any person or entity, including (1) STUDY.—The Comptroller General of the health care provider, supplier, or practi- a health maintenance organization, group United States shall conduct a study of the tioner, the Secretary shall, by regulation, medical practice, or any other entity listed costs incurred by eligible organizations with provide for— by the Secretary in regulation, that provides risk-sharing contracts under part C of title (A) disclosure of the information, upon re- health care services. XVIII of the Social Security Act of comply- quest, to the health care provider, supplier, (4) The term ‘‘supplier’’ means a supplier of ing with the requirement of entering into a or licensed practitioner, and health care items and services described in written agreement with an entity providing (B) procedures in the case of disputed accu- section 1819(a) and (b), and section 1861 of the peer review services with respect to services racy of the information. Social Security Act (42 U.S.C. 1395i–3(a) and provided by the organization, together with (2) CORRECTIONS.—Each Government agen- (b), and 1395x). an analysis of how information generated by cy and health plan shall report corrections of (5) The term ‘‘Government agency’’ shall such entities is used by the Secretary to as- information already reported about any final include: sess the quality of services provided by such adverse action taken against a health care (A) The Department of Justice. eligible organizations. provider, supplier, or practitioner, in such (B) The Department of Health and Human (2) REPORT TO CONGRESS.—Not later than form and manner that the Secretary pre- Services. July 1, 1998, the Comptroller General shall scribes by regulation. (C) Any other Federal agency that either submit a report to the Committee on Ways (d) ACCESS TO REPORTED INFORMATION.— administers or provides payment for the de- and Means and the Committee on Commerce (1) AVAILABILITY.—The information in this livery of health care services, including, but of the House of Representatives and the database shall be available to Federal and not limited to the Department of Defense Committee on Finance and the Special Com- State government agencies, health plans, and the Veterans’ Administration. mittee on Aging of the Senate on the study and the public pursuant to procedures that (D) State law enforcement agencies. conducted under paragraph (1). the Secretary shall provide by regulation. (E) State medicaid fraud and abuse units. S 15694 CONGRESSIONAL RECORD — SENATE October 25, 1995 (F) Federal or State agencies responsible PART IV—CIVIL MONETARY PENALTIES (1) by striking ‘‘or’’ at the end of paragraph for the licensing and certification of health SEC. 7121. SOCIAL SECURITY ACT CIVIL MONE- (1)(D); care providers and licensed health care prac- TARY PENALTIES. (2) by striking ‘‘, or’’ at the end of para- titioners. (a) GENERAL CIVIL MONETARY PENALTIES.— graph (2) and inserting a semicolon; (6) The term ‘‘health plan’’ means a plan or Section 1128A (42 U.S.C. 1320a–7a) is amended (3) by striking the semicolon at the end of program that provides health benefits, as follows: paragraph (3) and inserting ‘‘; or’’; and whether directly, through insurance, or oth- (1) In the third sentence of subsection (a), (4) by inserting after paragraph (3) the fol- erwise, and includes— by striking ‘‘programs under title XVIII’’ lowing new paragraph: (A) a policy of health insurance; and inserting ‘‘Federal health care programs ‘‘(4) in the case of a person who is not an (B) a contract of a service benefit organiza- (as defined in section 1128B(b)(f))’’. organization, agency, or other entity, is ex- tion; (2) In subsection (f)— cluded from participating in a program (C) a membership agreement with a health (A) by redesignating paragraph (3) as para- under title XVIII or a State health care pro- maintenance organization or other prepaid graph (4); and gram in accordance with this subsection or health plan; and (B) by inserting after paragraph (2) the fol- under section 1128 and who, at the time of a (D) an employee welfare benefit plan or a lowing new paragraph: violation of this subsection, retains a direct multiple employer welfare plan (as such ‘‘(3) With respect to amounts recovered or indirect ownership or control interest of 5 terms are defined in section 3 of the Em- arising out of a claim under a Federal health percent or more, or an ownership or control ployee Retirement Income Security Act of care program (as defined in section 1128B(f)), interest (as defined in section 1124(a)(3)) in, 1974 (29 U.S.C. 1002). the portion of such amounts as is determined or who is an officer or managing employee (7) For purposes of paragraph (1), the exist- to have been paid by the program shall be re- (as defined in section 1126(b)) of, an entity ence of a conviction shall be determined paid to the program, and the portion of such that is participating in a program under title under section 1128(i) of the Social Security amounts attributable to the amounts recov- XVIII or a State health care program;’’. Act. ered under this section by reason of the (c) EMPLOYER BILLING FOR SERVICES FUR- (g) CONFORMING AMENDMENT.—Section amendments made by the Medicare Improve- NISHED, DIRECTED, OR PRESCRIBED BY AN EX- 1921(d) (42 U.S.C. 1396r–2(d)) is amended by in- ment and Solvency Protection Act of 1995 (as CLUDED EMPLOYEE.—Section 1128A(a)(1) (42 serting ‘‘and section 7061 of the Medicare Im- estimated by the Secretary) shall be depos- U.S.C. 1320a–7a(a)(1)) is amended— provement and Solvency Protection Act of ited into the Hospital Insurance Trust (1) by striking ‘‘or’’ at the end of subpara- 1995’’ after ‘‘section 422 of the Health Care Fund.’’. graph (C); Quality Improvement Act of 1986’’. (3) In subsection (i)— (2) by striking ‘‘; or’’ at the end of subpara- SEC. 7121. INSPECTOR GENERAL ACCESS TO AD- (A) in paragraph (2), by striking ‘‘title V, graph (D) and inserting ‘‘, or’’; and DITIONAL PRACTITIONER DATA XVIII, XIX, or XX of this Act’’ and inserting (3) by adding at the end the following new BANK. ‘‘a Federal health care program (as defined subparagraph: Section 427 of the Health Care Quality Im- in section 1128B(f))’’; ‘‘(E) is for a medical or other item or serv- provement Act of 1986 (42 U.S.C. 11137) is (B) in paragraph (4), by striking ‘‘a health ice furnished, directed, or prescribed by an amended— insurance or medical services program under individual who is an employee or agent of (1) in subsection (a), by adding at the end title XVIII or XIX of this Act’’ and inserting the person during a period in which such em- the following sentence: ‘‘Information re- ‘‘a Federal health care program (as so de- ployee or agent was excluded from the pro- ported under this part shall also be made fined)’’; and gram under which the claim was made on available, upon request, to the Inspector (C) in paragraph (5), by striking ‘‘title V, any of the grounds for exclusion described in General of the Departments of Health and XVIII, XIX, or XX’’ and inserting ‘‘a Federal subparagraph (D);’’. Human Services, Defense, and Labor, the Of- health care program (as so defined)’’. (d) CIVIL MONEY PENALTIES FOR ITEMS OR fice of Personnel Management, and the Rail- (4) By adding at the end the following new SERVICES FURNISHED, DIRECTED, OR PRE- road Retirement Board.’’; and subsection: SCRIBED BY AN EXCLUDED INDIVIDUAL.—Sec- (2) by amending subsection (b)(4) to read as ‘‘(m)(1) For purposes of this section, with tion 1128A(a)(1)(D) (42 U.S.C. 1320a– follows: respect to a Federal health care program not 7a(a)(1)(D)) is amended by inserting ‘‘, di- ‘‘(4) FEES.—The Secretary may impose fees contained in this Act, references to the Sec- rected, or prescribed’’ after ‘‘furnished’’. for the disclosure of information under this retary in this section shall be deemed to be (e) MODIFICATIONS OF AMOUNTS OF PEN- part sufficient to recover the full costs of references to the Secretary or Administrator ALTIES AND ASSESSMENTS.—Section 1128A(a) carrying out the provisions of this part, in- of the department or agency with jurisdic- (42 U.S.C. 1320a–7a(a)), as amended by sub- cluding reporting, disclosure, and adminis- tion over such program and references to the section (b), is amended in the matter follow- tration, except that a fee may not be im- Inspector General of the Department of ing paragraph (4)— posed for requests made by the Inspector Health and Human Services in this section (1) by striking ‘‘$2,000’’ and inserting General of the Department of Health and shall be deemed to be references to the In- ‘‘$10,000’’; Human Services. Such fees shall remain spector General of the applicable department (2) by inserting ‘‘; in cases under paragraph available to the Secretary (or, in the Sec- or agency. (4), $10,000 for each day the prohibited rela- retary’s discretion, to the agency designated ‘‘(2)(A) The Secretary and Administrator of tionship occurs’’ after ‘‘false or misleading in section 424(b)) until expended.’’. the departments and agencies referred to in information was given’’; and SEC. 7112. CORPORATE WHISTLEBLOWER PRO- paragraph (1) may include in any action pur- (3) by striking ‘‘twice the amount’’ and in- GRAM. suant to this section, claims within the ju- serting ‘‘3 times the amount’’. Title XI (42 U.S.C. 1301 et seq.) is amended risdiction of other Federal departments or (f) CLAIM FOR ITEM OR SERVICE BASED ON by inserting after section 1128B the following agencies as long as the following conditions INCORRECT CODING OR MEDICALLY UNNECES- new section: are satisfied: SARY SERVICES.—Section 1128A(a)(1) (42 ‘‘(i) The case involves primarily claims U.S.C. 1320a–7a(a)(1)) is amended— CORPORATE WHISTLEBLOWER PROGRAM submitted to the Federal health care pro- (1) in subparagraph (A) by striking ‘‘SEC. 1128C (a) ESTABLISHMENT OF PRO- grams of the department or agency initiat- ‘‘claimed,’’ and inserting ‘‘claimed, including GRAM.—The Secretary, through the Inspector ing the action. any person who engages in a pattern or prac- General of the Department of Health and ‘‘(ii) The Secretary or Administrator of the tice of presenting or causing to be presented Human Services, shall establish a procedure department or agency initiating the action a claim for an item or service that is based whereby corporations, partnerships, and gives notice and an opportunity to partici- on a code that the person knows or has rea- other legal entities specified by the Sec- pate in the investigation to the Inspector son to know will result in a greater payment retary, may voluntarily disclose instances of General of the department or agency with to the person than the code the person knows unlawful conduct and seek to resolve liabil- primary jurisdiction over the Federal health or has reason to know is applicable to the ity for such conduct through means specified care programs to which the claims were sub- item or service actually provided,’’; by the Secretary. mitted. (2) in subparagraph (C), by striking ‘‘or’’ at ‘‘(b) LIMITATION.—No person may bring an ‘‘(B) If the conditions specified in subpara- the end; action under section 3730(b) of title 31, Unit- graph (A) are fulfilled, the Inspector General (3) in subparagraph (D), by striking ‘‘; or’’ ed States Code, if, on the date of filing— of the department or agency initiating the and inserting ‘‘, or’’; and ‘‘(1) the matter set forth in the complaint action is authorized to exercise all powers (4) by inserting after subparagraph (D) the has been voluntarily disclosed to the United granted under the Inspector General Act of following new subparagraph: States by the proposed defendant and the de- 1978 with respect to the claims submitted to ‘‘(E) is for a medical or other item or serv- fendant has been accepted into the voluntary the other departments or agencies to the ice that a person knows or has reason to disclosure program established pursuant to same manner and extent as provided in that know is not medically necessary; or’’. subsection (a); and Act with respect to claims submitted to such (g) PERMITTING SECRETARY TO IMPOSE CIVIL ‘‘(2) any new information provided in the departments or agencies.’’. MONETARY PENALTY.—Section 1128A(b) (42 complaint under such section does not add (b) EXCLUDED INDIVIDUAL RETAINING OWN- U.S.C. 1320a–7a(a)) is amended by adding the substantial grounds for additional recovery ERSHIP OR CONTROL INTEREST IN PARTICIPAT- following new paragraph: beyond those encompassed within the scope ING ENTITY.—Section 1128A(a) (42 U.S.C. ‘‘(3) Any person (including any organiza- of the voluntary disclosure.’’. 1320a–7a(a)) is amended— tion, agency, or other entity, but excluding a October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15695 beneficiary as defined in subsection (i)(5)) PART V—CHAPTER 5—AMENDMENTS TO under seizure, detention, or forfeited, or of who the Secretary determines has violated CRIMINAL LAW any other necessary expenses incident to the section 1128B(b) of this title shall be subject SEC. 7131. HEALTH CARE FRAUD. seizure, detention, forfeiture, or disposal of to a civil monetary penalty of not more than (a) FINES AND IMPRISONMENT FOR HEALTH such property, including payment for— $10,000 for each such violation. In addition, CARE FRAUD VIOLATIONS.—Chapter 63 of title (i) contract services, such person shall be subject to an assess- 18, United States Code, is amended by adding (ii) the employment of outside contractors ment of not more than twice the total at the end the following new section: to operate and manage properties or provide amount of the remuneration offered, paid, other specialized services necessary to dis- ‘‘§ 1347. Health care fraud solicited, or received in violation of section pose of such properties in an effort to maxi- 1128B(b). The total amount of remuneration ‘‘(a) Whoever knowingly and willfully exe- mize the return from such properties; and subject to an assessment shall be calculated cutes, or attempts to execute, a scheme or (iii) reimbursement of any Federal, State, without regard to whether some portion artifice— or local agency for any expenditures made to thereof also may have been intended to serve ‘‘(1) to defraud any health plan or other perform the functions described in this sub- a purpose other than one proscribed by sec- person, in connection with the delivery of or paragraph; tion 1128B(b).’’. payment for health care benefits, items, or (B) at the discretion of the Attorney Gen- (h) SANCTIONS AGAINST PRACTITIONERS AND services; or eral, the payment of awards for information PERSONS FOR FAILURE TO COMPLY WITH STAT- ‘‘(2) to obtain, by means of false or fraudu- or assistance leading to a civil or criminal UTORY OBLIGATIONS.—Section 1156(b)(3) (42 lent pretenses, representations, or promises, forfeiture involving any Federal agency par- U.S.C. 1320c–5(b)(3)) is amended by striking any of the money or property owned by, or ticipating in the Health Care Fraud and ‘‘the actual or estimated cost’’ and inserting under he custody or control of, any health Abuse Control Account; ‘‘up to $10,000 for each instance’’. plan, or person in connection with the deliv- (C) the compromise and payment of valid (i) PROHIBITION AGAINST OFFERING INDUCE- ery of or payment for health care benefits, liens and mortgages against property that MENTS TO INDIVIDUALS ENROLLED UNDER PRO- items, or services; has been forfeited, subject to the discretion GRAMS OR PLANS.— shall be fined under this title or imprisoned of the Attorney General to determine the va- (1) OFFER OF REMUNERATION.—Section not more than 10 years, or both. If the viola- lidity of any such lien or mortgage and the 1128A(a) (42 U.S.C. 1320a–7a(a)) is amended— tion results in serious bodily injury (as de- amount of payment to be made, and the em- (A) by striking ‘‘or’’ at the end of para- fined in section 1365(g)(3) of this title), such ployment of attorneys and other personnel graph (1)(D); person may be imprisoned for any term of skilled in State real estate law as necessary; (B) by striking ‘‘, or’’ at the end of para- years. (D) payment authorized in connection with graph (2) and inserting a semicolon; ‘‘(b) For purposes of this section, the term remission or mitigation procedures relating (C) by striking the semicolon at the end of ‘health plan’ has the same meaning given to property forfeited; and paragraph (3) and inserting ‘‘; or’’; and such term in section 7061(f)(6) of the Medi- (E) the payment of State and local prop- (D) by inserting after paragraph (3) the fol- care Improvement and Solvency Protection erty taxes on forfeited real property that ac- lowing new paragraph: Act of 1995.’’. crued between the date of the violation giv- ‘‘(4) offers to or transfers remuneration to (b) CLERICAL AMENDMENT.—The table of ing rise to the forfeiture and the date of the any individual eligible for benefits under sections at the beginning of chapter 63 of forfeiture order. title XVIII of this Act, or under a State title 18, United States Code, is amended by adding at the end the following: SEC. 7133. INJUNCTIVE RELIEF RELATING TO health care program (as defined in section FEDERAL HEALTH CARE OFFENSES. 1128(h)) that such person knows or should ‘‘1347. Health care fraud.’’. (a) IN GENERAL.—Section 1345(a)(1) of title know is likely to influence such individual SEC. 7132. FORFEITURES FOR FEDERAL HEALTH 18, United States Code, is amended— to order or receive from a particular pro- CARE OFFENSES. (1) by striking ‘‘or’’ at the end of subpara- vider, practitioner, or supplier any item or (a) IN GENERAL.—Section 982(a) of title 18, graph (A); service for which payment may be made, in United States Code, is amended by adding (2) by inserting ‘‘or’’ at the end of subpara- whole or in part, under title XVIII, or a after paragraph (5) the following new para- graph (B); and State health care program;’’. graph: (3) by adding at the end the following new (2) REMUNERATION DEFINED.—Section ‘‘(6)(A) The court, in imposing sentence on subparagraph: 1128A(i) (42 U.S.C. 1320a–7a(i)) is amended by a person convicted of a Federal health care ‘‘(C) committing or about to commit a adding the following new paragraph: offense, shall order the person to forfeit Federal health care offense (as defined in ‘‘(6) The term ‘remuneration’ includes the property, real or personal, that constitutes section 982(a)(6)(B) of this title);’’. waiver of coinsurance and deductible or is derived, directly or indirectly, from (b) FREEZING OF ASSETS.—Section 1345(a)(2) amounts (or any part thereof), and transfers gross proceeds traceable to the commission of title 18, United States Code, is amended by of items or services for free or for other than of the offense. inserting ‘‘or a Federal health care offense fair market value. The term ‘remuneration’ ‘‘(B) For purposes of this paragraph, the (as defined in section 982(a)(6)(B))’’ after does not include— term ‘Federal health care offense’ means a ‘‘title)’’. ‘‘(A) the waiver of coinsurance and deduct- violation of, or a criminal conspiracy to vio- ible amounts by a person, if— late— SEC. 7134. GRAND JURY DISCLOSURE. ‘‘(i) the waiver is not offered as part of any ‘‘(i) section 1347 of this title; Section 3322 of title 18, United States Code, advertisement or solicitation; ‘‘(ii) section 1128B of the Social Security is amended— ‘‘(ii) the person does not routinely waive Act; and (1) by redesignating subsections (c) and (d) coinsurance or deductible amounts; and ‘‘(iii) sections 287, 371, 664, 666, 669, 1001, as subsections (d) and (e), respectively; and ‘‘(iii) the person— 1027, 1341, 1343, 1920, or 1954 of this title if the (2) by inserting after subsection (b) the fol- ‘‘(I) waives the coinsurance and deductible violation or conspiracy relates to health care lowing new subsection: amounts after determining in good faith that fraud.’’. ‘‘(c) A person who is privy to grand jury in- the individual is in financial need; (b) CONFORMING AMENDMENT.—Section formation concerning a Federal health care ‘‘(II) fails to collect coinsurance or deduct- 982(b)(1)(A) of title 18, United States Code, is offense (as defined in section 982(a)(6)(B))— ible amounts after making reasonable collec- amended by inserting ‘‘or (a)(6)’’ after ‘‘(1) received in the course of duty as an at- tion efforts; or ‘‘(a)(1)’’. torney for the Government; or ‘‘(III) provides for any permissible waiver (c) PROPERTY FORFEITED DEPOSITED IN FED- ‘‘(2) disclosed under rule 6(e)(3)(A)(ii) of the as specified in section 1128B(b)(3) or in regu- ERAL HOSPITAL INSURANCE TRUST FUND.— Federal Rules of Criminal Procedure; lations issued by the Secretary; (1) IN GENERAL.—After the payment of the may disclose that information to an attor- ‘‘(B) differentials in coinsurance and de- costs of asset forfeiture has been made, and ney for the Government to use in any inves- ductible amounts as part of a benefit plan notwithstanding any other provision of law, tigation or civil proceeding relating to design as long as the differentials have been the Secretary of the Treasury shall deposit health care fraud.’’. disclosed in writing to all beneficiaries, third into the Federal Hospital Insurance Trust SEC. 7135. FALSE STATEMENTS. Fund pursuant to section 1817(k)(2)(C) of the party payors, and providers, to whom claims (a) IN GENERAL.—Chapter 47, of title 18, are presented and as long as the differentials Social Security Act, as added by section United States Code, is amended by adding at meet the standards as defined in regulations 7101(b), an amount equal to the net amount the end the following new section: promulgated by the Secretary not later than realized from the forfeiture of property by 180 days after the date of the enactment of reason of a Federal health care offense pur- ‘‘§ 1035. False statements relating to health the Medicare Improvement and Solvency suant to section 982(a)(6) of title 18, United care matters Protection Act of 1995; or States Code. ‘‘(a) Whoever, in any matter involving a ‘‘(C) incentives given to individuals to pro- (2) COSTS OF ASSET FORFEITURE.—For pur- health plan, knowingly and willfully fal- mote the delivery of preventive care as de- poses of paragraph (1), the term ‘‘payment of sifies, conceals, or covers up by any trick, termined by the Secretary in regulations so the costs of asset forfeiture’’ means— scheme, or device a material fact, or makes promulgated.’’. (A) the payment, at the discretion of the any false, fictitious, or fraudulent state- (j) EFFECTIVE DATE.—The amendments Attorney General, of any expenses necessary ments or representations, or makes or uses made by this section shall take effect Janu- to seize, detain, inventory, safeguard, main- any false writing or document knowing the ary 1, 1996. tain, advertise, sell, or dispose of property same to contain any false, fictitious, or S 15696 CONGRESSIONAL RECORD — SENATE October 25, 1995 fraudulent statement or entry, shall be fined SEC. 7139. AUTHORIZED INVESTIGATIVE DEMAND law, any person, including officers, agents, under this title or imprisoned not more than PROCEDURES. and employees, receiving a subpoena under 5 years, or both. (a) IN GENERAL.—Chapter 233 of title 18, this section, who complies in good faith with ‘‘(b) For purposes of this section, the term United States Code, is amended by adding the subpoena and thus produces the mate- ‘health plan’ has the same meaning given after section 3485 the following new section: rials sought, shall not be liable in any court such term in section 7061(f)(6) of the Medi- ‘‘§ 3486. Authorized investigative demand pro- of any State or the United States to any cus- care Improvement and Solvency Protection cedures tomer or other person for such production or Act of 1995.’’. ‘‘(a) AUTHORIZATION.— for nondisclosure of that production to the (b) CLERICAL AMENDMENT.—The table of ‘‘(1) In any investigation relating to func- customer. sections at the beginning of chapter 47 of tions set forth in paragraph (2), the Attorney ‘‘(e) USE IN ACTION AGAINST INDIVIDUALS.— title 18, United States Code, in amended by General or designee may issue in writing and ‘‘(1) Health information about an individ- adding at the end the following: cause to be served a subpoena compelling ual that is disclosed under this section may ‘‘1035. False statements relating to health production of any records (including any not be used in, or disclosed to any person for care matters.’’. books, papers, documents, electronic media, use in, any administrative, civil, or criminal SEC. 7136. OBSTRUCTION OF CRIMINAL INVES- or other objects or tangible things), which action or investigation directed against the TIGATIONS, AUDITS, OR INSPEC- may be relevant to an authorized law en- individual who is the subject of the informa- TIONS OF FEDERAL HEALTH CARE forcement inquiry, that a person or legal en- tion unless the action or investigation arises OFFENSES. tity may possess or have care, custody, or out of and is directly related to receipt of (a) IN GENERAL.—Chapter 73 of title 18, control. A custodian of records may be re- health care or payment for health care or ac- United States Code, is amended by adding at quired to give testimony concerning the pro- tion involving a fraudulent claim related to the end the following new section: duction and authentication of such records. health; or if authorized by an appropriate ‘‘§ 1518. Obstruction of criminal investiga- The production of records may be required order of a court of competent jurisdiction, tions, audits, or inspections of Federal from any place in any State or in any terri- granted after application showing good cause tory or other place subject to the jurisdic- health care offenses therefore. tion of the United States at any designated ‘‘(a) IN GENERAL.—Whoever willfully pre- ‘‘(2) In assessing good cause, the court place; except that such production shall not vents, obstructs, misleads, delays or at- shall weigh the public interest and the need be required more than 500 miles distant from tempts to prevent, obstruct, mislead, or for disclosure against the injury to the pa- the place where the subpoena is served. Wit- delay the communication of information or tient, to the physician-patient relationship, nesses summoned under this section shall be records relating to a Federal health care of- and to the treatment services. paid the same fees and mileage that are paid fense to a Federal agent or employee in- ‘‘(3) Upon the granting of such order, the witnesses in the courts of the United States. volved in an investigation, audit, inspection, court, in determining the extent to which A subpoena requiring the production of or other activity related to such an offense, any disclosure of all or any part of any records shall describe the objects required to shall be fined under this title or imprisoned be produced and prescribe a return date record is necessary, shall impose appropriate not more than 5 years, or both. within a reasonable period of time within safeguards against unauthorized disclosure. ‘‘(b) FEDERAL HEALTH CARE OFFENSE.—As which the objects can be assembled and made ‘‘(f) HEALTH PLAN.—As used in this section used in this section the term ‘Federal health available. the term ‘health plan’ has the same meaning care offense’ has the same meaning given ‘‘(2) Investigative demands utilizing an ad- given such term in section 7061(f)(6) of the such term in section 982(a)(6)(B) of this title. ministrative subpoena are authorized for any Medicare Improvement and Solvency Protec- ‘‘(c) CRIMINAL INVESTIGATOR.—As used in investigation with respect to any act or ac- tion Act of 1995.’’. this section the term ‘criminal investigator’ tivity constituting or involving health care (b) CLERICAL AMENDMENT.—The table of means any individual duly authorized by a fraud, including a scheme or artifice— department, agency, or armed force of the sections for chapter 223 of title 18, United ‘‘(A) to defraud any health plan or other States Code, is amended by inserting after United States to conduct or engage in inves- person, in connection with the delivery of or tigations for prosecutions for violations of the item relating to section 3485 the follow- payment for health care benefits, items, or ing new item: health care offenses.’’. services; or (b) CLERICAL AMENDMENT.—The table of ‘‘(B) to obtain, by means of false or fraudu- ‘‘3486. Authorized investigative demand pro- sections at the beginning of chapter 73 of lent pretenses, representations, or promises, cedures.’’. title 18, United States Code, is amended by any of the money or property owned by, or (c) CONFORMING AMENDMENT.—Section adding at the end the following: under the custody or control or, any health 1510(b)(3)(B) of title 18, United States Code, is ‘‘1518. Obstruction of criminal investiga- plan, or person in connection with the deliv- amended by inserting ‘‘or a Department of tions, audits, or inspections of ery of or payment for health care benefits, Justice subpoena (issued under section Federal health care offenses.’’. items, or services. 3486),’’ after ‘‘subpoena’’. SEC. 7137. THEFT OR EMBEZZLEMENT. ‘‘(b) SERVICE.—A subpoena issued under PART VI—STATE HEALTH CARE FRAUD (a) IN GENERAL.—Chapter 31 of title 18, this section may be served by any person United States Code, is amended by adding at designated in the subpoena to serve it. Serv- CONTROL UNITS the end the following new section: ice upon a natural person may be made by SEC. 7141. STATE HEALTH CARE FRAUD CONTROL ‘‘§ 669. Theft or embezzlement in connection personal delivery of the subpoena to such UNITS. person. Service may be made upon a domes- with health care (a) EXTENSION OF CONCURRENT AUTHORITY tic or foreign association which is subject to TO INVESTIGATE AND PROSECUTE FRAUD IN ‘‘(a) IN GENERAL.—Whoever willfully em- suit under a common name, by delivering the OTHER FEDERAL PROGRAMS.—Section bezzles, steals, or otherwise without author- subpoena to an officer, to a managing or gen- 1903(q)(3) (42 U.S.C. 1396b(q)(3)) is amended— ity willfully and unlawfully converts to the eral agent, or to any other agent authorized (1) by inserting ‘‘(A)’’ after ‘‘in connection use of any person other than the rightful by appointment or by law to receive service with’’; and owner, or intentionally misapplies any of the of process. The affidavit of the person serv- (2) by striking ‘‘title.’’ and inserting ‘‘title; moneys, funds, securities, premiums, credits, ing the subpoena entered on a true copy and (B) in cases where the entity’s function property, or other assets of a health plan, thereof by the person serving it shall be is also described by subparagraph (A), and shall be fined under this title or imprisoned proof of service. not more than 10 years, or both. ‘‘(c) ENFORCEMENT.—In the case of contu- upon the approval of the relevant Federal ‘‘(b) HEALTH PLAN.—As used in this section macy by or refusal to obey a subpoena issued agency, any aspect of the provision of health the term ‘health plan’ has the same meaning to any person, the Attorney General may in- care services and activities of providers of given such term in section 7061(f)(6) of the voke the aid of any court of the United such services under any Federal health care Medicare Improvement and Solvency Protec- States within the jurisdiction of which the program (as defined in section 1128B(b)(1)).’’. tion Act of 1995.’’. investigation is carried on or of which the (b) EXTENSION OF AUTHORITY TO INVES- (b) CLERICAL AMENDMENT.—The table of subpoenaed person is an inhabitant, or in TIGATE AND PROSECUTE PATIENT ABUSE IN sections at the beginning of chapter 31 of which such person carries on business or NON-MEDICAID BOARD AND CARE FACILITIES.— title 18, United States Code, is amended by may be found, to compel compliance with Section 1903(q)(4) (42 U.S.C. 1396b(q)(4)) is adding at the end the following: the subpoena. The court may issue an order amended to read as follows: ‘‘669. Theft or embezzlement in connection requiring the subpoenaed person to appear ‘‘(4)(A) The entity has— with health care.’’. before the Attorney General to produce ‘‘(i) procedures for reviewing complaints of SEC. 7138. LAUNDERING OF MONETARY INSTRU- records, if go ordered, or to give testimony abuse or neglect of patients in health care MENTS. touching the matter under investigation. facilities which receive payments under the Section 1956(c)(7) of title 18, United States Any failure to obey the order of the court State plan under this title; Code, is amended by adding at the end the may be punished by the court as a contempt ‘‘(ii) at the option of the entity, procedures following new subparagraph: thereof. All process in any such case may be for reviewing complaints of abuse or neglect ‘‘(F) Any act or activity constituting an served in any judicial district in which such of patients residing in board and care facili- offense involving a Federal health care of- person may be found. ties; and fense as that term is defined in section ‘‘(d) IMMUNITY FROM CIVIL LIABILITY.—Not- ‘‘(iii) procedures for acting upon such com- 982(a)(6)(B) of this title.’’. withstanding any Federal, State, or local plaints under the criminal laws of the State October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15697

or for referring such complaints to other unique identifier codes on all claims for pay- ‘‘(1) IN GENERAL.—The Secretary shall con- State agencies for action. ment. duct a competition among individuals and ‘‘(B) For purposes of this paragraph, the (b) APPLICATION FEE.—The Secretary shall entities supplying items and services under term ‘board and care facility’ means a resi- require an individual applying for a unique this part for each competitive acquisition dential setting which receives payment from identifier code under subsection (a) to sub- area established under subsection (a) for or on behalf of two or more unrelated adults mit a fee in an amount determined by the each class of items and services. who reside in such facility, and for whom one Secretary to be sufficient to cover the cost ‘‘(2) CONDITIONS FOR AWARDING CONTRACT.— or both of the following is provided: of investigating the information on the ap- The Secretary may not award a contract to ‘‘(i) Nursing care services provided by, or plication and the individual’s suitability for any individual or entity under the competi- under the supervision of, a registered nurse, receiving such a code. tion conducted pursuant to paragraph (1) to licensed practical nurse, or licensed nursing SEC. 7154. USE OF NEW PROCEDURES. furnish an item or service under this part assistant. No payment may be made under either unless the Secretary finds that the individ- ‘‘(ii) Personal care services that assist resi- title XVIII or XIX of the Social Security Act ual or entity— dents with the activities of daily living, in- (42 U.S.C. 1395 et seq.; 42 U.S.C. 1396 et seq.) ‘‘(A) meets quality standards specified by cluding personal hygiene, dressing, bathing, for any item or service furnished by an indi- the Secretary for the furnishing of such item eating, toileting, ambulation, transfer, posi- vidual or entity unless the requirements of or service; and tioning, self-medication, body care, travel to sections 7102 and 7103 are satisfied. ‘‘(B) offers to furnish a total quantity of medical services, essential shopping, meal SEC. 7155. REQUIRED BILLING, PAYMENT, AND such item or service that is sufficient to preparation, laundry, and housework.’’. COST LIMIT CALCULATION TO BE meet the expected need within the competi- PART VII—MEDICARE/MEDICAID BILLING BASED ON SITE WHERE SERVICE IS tive acquisition area and to assure that ac- ABUSE PREVENTION FURNISHED. cess to such items (including appropriate (a) CONDITIONS OF PARTICIPATION.—Section customized items) and services to individ- SEC. 7151. UNIFORM MEDICARE/MEDICAID APPLI- 1891 (42 U.S.C. 1395bbb) is amended by adding CATION PROCESS. uals residing in rural and other underserved at the end the following new subsection: Not later than 1 year after the date of the areas is not reduced. ‘‘(g) A home health agency shall submit enactment of this Act, the Secretary shall ‘‘(3) CONTENTS OF CONTRACT.—A contract claims for payment of home health services establish procedures and a uniform applica- entered into with an individual or entity under this title only on the basis of the geo- tion form for use by any individual or entity under the competition conducted pursuant graphic location at which the service is fur- that seeks to participate in the programs to paragraph (1) shall specify (for all of the nished, as determined by the Secretary.’’. under titles XVIII and XIX of the Social Se- items and services within a class)— (b) WAGE ADJUSTMENT.—Section ‘‘(A) the quantity of items and services the curity Act (42 U.S.C. 1395 et seq.; 42 U.S.C. 1861(v)(1)(L)(iii) (42 U.S.C. 1395x(v)(1)(L)(iii)) entity shall provide; and 1396 et seq.). The procedures established shall is amended by striking ‘‘agency is located’’ ‘‘(B) such other terms and conditions as include the following: and inserting ‘‘service is furnished’’. (1) Execution of a standard authorization the Secretary may require. form by all individuals and entities prior to Subchapter B—Additional Provisions to Combat Waste, Fraud, and Abuse ‘‘(c) SERVICES DESCRIBED.—The items and submission of claims for payment which services to which the provisions of this sec- shall include the social security number of PART I—WASTE AND ABUSE REDUCTION tion shall apply are as follows: the beneficiary and the TIN (as defined in SEC. 7161. PROHIBITING UNNECESSARY AND ‘‘(1) Durable medical equipment and medi- section 7701(a)(41) of the Internal Revenue WASTEFUL MEDICARE PAYMENTS cal supplies. FOR CERTAIN ITEMS. Code of 1986) of any health care provider, ‘‘(2) Oxygen and oxygen equipment. Notwithstanding any other provision of supplier, or practitioner providing items or ‘‘(3) Such other items and services with re- law, including any regulation or payment services under the claim. spect to which the Secretary determines the policy, the following categories of charges (2) Assumption of responsibility and liabil- use of competitive acquisition under this shall not be reimbursable under title XVIII ity for all claims submitted. section to be appropriate and cost-effec- of the Social Security Act: (3) A right of access by the Secretary to tive.’’. provider records relating to items and serv- (1) Tickets to sporting or other entertain- ices rendered to beneficiaries of such pro- ment events. (b) ITEMS AND SERVICES TO BE FURNISHED grams. (2) Gifts or donations. ONLY THROUGH COMPETITIVE ACQUISITION.— (4) Retention of source documentation. (3) Costs related to team sports. Section 1862(a) (42 U.S.C. 1395y(a)) is amend- (5) Provision of complete and accurate doc- (4) Personal use of motor vehicles. ed— umentation to support all claims for pay- (5) Costs for fines and penalties resulting (1) by striking ‘‘or’’ at the end of paragraph ment. from violations of Federal, State, or local (14); (6) A statement of the legal consequences laws. (2) by striking the period at the end of for the submission of false or fraudulent (6) Tuition or other education fees for paragraph (15) and inserting ‘‘; or’’; and claims for payment. spouses or dependents of providers of serv- (3) by inserting after paragraph (15) the fol- lowing new paragraph: SEC. 7152. STANDARDS FOR UNIFORM CLAIMS. ices, their employees, or contractors. ‘‘(16) where such expenses are for an item (a) ESTABLISHMENT OF STANDARDS.—Not SEC. 7162. APPLICATION OF COMPETITIVE AC- or service furnished in a competitive acquisi- later than 1 year after the date of the enact- QUISITION PROCESS FOR PART B ITEMS AND SERVICES. tion area (as established by the Secretary ment of this Act, the Secretary shall estab- under section 1847(a)) by an individual or en- lish standards for the form and submission of (a) GENERAL RULE.—Part B of title XVIII is tity other than the supplier with whom the claims for payment under the medicare pro- amended by inserting after section 1846 the Secretary has entered into a contract under gram under title XVIII of the Social Secu- following new section: section 1847(b) for the furnishing of such rity Act (42 U.S.C. 1395 et seq.) and the med- ‘‘COMPETITION ACQUISITION FOR ITEMS AND item or service in that area, unless the Sec- icaid program under title XIX of such Act (42 SERVICES retary finds that such expenses were in- U.S.C. 1396 et seq.). ‘‘SEC. 1847. (a) ESTABLISHMENT OF BIDDING curred in a case of urgent need.’’. (b) ENSURING PROVIDER RESPONSIBILITY.— AREAS.— In establishing standards under subsection ‘‘(1) IN GENERAL.—The Secretary shall es- (c) REDUCTION IN PAYMENT AMOUNTS IF (a), the Secretary, in consultation with ap- tablish competitive acquisition areas for the COMPETITIVE ACQUISITION FAILS TO ACHIEVE propriate agencies including the Department purpose of awarding a contract or contracts MINIMUM REDUCTION IN PAYMENTS.—Notwith- of Justice, shall include such methods of en- for the furnishing under this part of the standing any other provision of title XVIII of suring provider responsibility and account- items and services described in subsection (c) the Social Security Act, if the establishment ability for claims submitted as necessary to on or after January 1, 1996. The Secretary of competitive acquisition areas under sec- control fraud and abuse. may establish different competitive acquisi- tion 1847 of such Act (as added by subsection (c) USE OF ELECTRONIC MEDIA.—The Sec- tion areas under this subsection for different (a)) and the limitation of coverage for items retary shall develop specific standards which classes of items and services under this part. and services under part B of such title to govern the submission of claims through ‘‘(2) CRITERIA FOR ESTABLISHMENT.—The items and services furnished by providers electronic media in order to control fraud competitive acquisition areas established with competitive acquisition contracts and abuse in the submission of such claims. under paragraph (1) shall— under such section does not result in a re- SEC. 7153. UNIQUE PROVIDER IDENTIFICATION ‘‘(A) initially be within, or be centered duction, beginning on January 1, 1997, of at CODE. around metropolitan statistical areas; least 20 percent (40 percent in the case of ox- (a) ESTABLISHMENT OF SYSTEM.—Not later ‘‘(B) be chosen based on the availability ygen and oxygen equipment) in the projected than 1 year after the date of the enactment and accessibility of suppliers and the prob- payment amount that would have applied to of this Act, the Secretary shall establish a able savings to be realized by the use of com- an item or service under part B if the item system which provides for the issuance of a petitive bidding in the furnishing of items or service had not been furnished through unique identifier code for each individual or and services in the area; and competitive acquisition under such section, entity furnishing items or services for which ‘‘(C) be chosen so as to not reduce access to the Secretary shall reduce such payment payment may be made under title XVIII or such items and services to individuals resid- amount by such percentage as the Secretary XIX of the Social Security (42 U.S.C. 1395 et ing in rural and other underserved areas. determines necessary to result in such a re- seq.; 1396 et seq.), and the notation of such ‘‘(b) AWARDING OF CONTRACTS IN AREAS.— duction. Notwithstanding this section, in no S 15698 CONGRESSIONAL RECORD — SENATE October 25, 1995 case can the Secretary make a payment for nipulation on the day before the date of the ices described in section 1861(s)(7), payment items and services described in Section enactment of this Act. shall be made based on the lesser of— 1847(c) that are greater than that required by (3) The ADPE shall be capable of being ‘‘(A) the actual charges for the services; or other provisions of the Balanced Budget Rec- modified to— ‘‘(B) the amount determined by a fee onciliation Act of 1995. (A) satisfy pertinent statutory require- schedule developed by the Secretary. SEC. 7163. REDUCING EXCESSIVE BILLINGS AND ments of the medicare program; and ‘‘(2) FEE SCHEDULE.—The fee schedule es- UTILIZATION FOR CERTAIN ITEMS. (B) conform to general policies of the tablished under paragraph (1) shall be estab- Section 1834(a)(15) (42 U.S.C. 1395m(a)(15)) Health Care Financing Administration re- lished on a regional, statewide, or carrier is amended by striking ‘‘Secretary may’’ garding claims processing. service area basis (as the Secretary may de- both places it appears and inserting ‘‘Sec- (b) MINIMUM STANDARDS.—Nothing in this termine to be appropriate) for services per- retary shall’’. subchapter shall be construed as preventing formed on or after January 1, 1996. SEC. 7164. IMPROVED CARRIER AUTHORITY TO the use of ADPE which exceeds the minimum ‘‘(3) SEPARATE PAYMENT LEVELS.— REDUCE EXCESSIVE MEDICARE PAY- requirements described in subsection (a). ‘‘(A) IN GENERAL.—In establishing the fee MENTS. SEC. 7173. DISCLOSURE. schedule under paragraph (2), the Secretary (a) GENERAL RULE.—Section 1834(a)(10)(B) (a) IN GENERAL.—Notwithstanding any shall establish separate payment rates for (42 U.S.C. 1395m(a)(10)(B)) is amended by other provision of law, and except as pro- advanced life support and basic life support striking ‘‘paragraphs (8) and (9)’’ and all that vided in subsection (b), any ADPE or data re- services. Payment levels shall be restricted follows through the end of the sentence and lated thereto acquired by medicare carriers to the basic life support level unless the pa- inserting ‘‘section 1842(b)(8) to covered items in accordance with section 7171(a) shall not tient’s medical condition or other cir- and suppliers of such items and payments be subject to public disclosure. cumstance necessitates (as determined by under this subsection as such provisions (re- (b) EXCEPTION.—The Secretary may au- the Secretary in regulations) the provisions lating to determinations of grossly excessive thorize the public disclosure of any ADPE or of advanced life support services. payment amounts) apply to items and serv- data related thereto acquired by medicare ‘‘(B) NONROUTINE BASIS.—The Secretary ices and entities and a reasonable charge carriers in accordance with section 7121(a) if shall also establish appropriate payment lev- under section 1842(b)’’. the Secretary determines that— els for the provision of ambulance services (b) REPEAL OF OBSOLETE PROVISIONS.— (1) release of such information is in the that are provided on a routine or scheduled (1) Section 1842(b)(8) (42 U.S.C. 1395u(b)(8)) public interest; and basis. Such payment levels shall not exceed is amended— (2) the information to be released is not 80 percent of the applicable rate for unsched- (A) by striking subparagraphs (B) and (C), protected from disclosure under section uled transports. (B) by striking ‘‘(8)(A)’’ and inserting 552(b) of title 5, United States Code. ‘‘(4) ANNUAL ADJUSTMENT.— ‘‘(8)’’, and SEC. 7174. REVIEW AND MODIFICATION OF REGU- ‘‘(A) IN GENERAL.—Except as provided in (C) by redesignating clauses (i) and (ii) as LATIONS. subparagraph (B), the fee schedules shall be subparagraphs (A) and (B), respectively. Not later than 30 days after the date of the adjusted annually (to become effective on (2) Section 1842(b)(9) (42 U.S.C. 1395u(b)(9)) enactment of this Act, the Secretary shall January 1 of each year) by a percentage in- is repealed. order a review of existing regulations, guide- crease or decrease equal to the percentage (c) PAYMENT FOR SURGICAL DRESSINGS.— lines, and other guidance governing medi- increase or decrease in the consumer price Section 1834(i) (42 U.S.C. 1395m(i)) is amend- care payment policies and billing code abuse index for all urban consumers (United States ed by adding at the end the following new to determine if revision of or addition to city average). paragraph: those regulations, guidelines, or guidance is ‘‘(B) SPECIAL RULE.—Notwithstanding sub- ‘‘(3) GROSSLY EXCESSIVE PAYMENT necessary to maximize the benefits to the paragraph (B), the annual adjustment in the AMOUNTS.—Notwithstanding paragraph (1), Federal Government of the use of ADPE ac- fee schedules determined under such sub- the Secretary may apply the provisions of quired pursuant to section 7171. paragraph for each of the years 1996 through section 1842(b)(8) to payments under this sub- SEC. 7175. DEFINITIONS. 2002 shall be such consumer price index for section.’’. For purposes of this chapter— the year minus 1 percentage point. SEC. 7165. EFFECTIVE DATE. (1) The term ‘‘automatic data processing ‘‘(5) FURTHER ADJUSTMENTS.—The Sec- The amendments made by this chapter equipment’’ (ADPE) has the same meaning retary shall adjust the fee schedule to the shall apply to items and services furnished as in section 111(a)(2) of the Federal Property extent necessary to ensure that the fee under title XVIII of the Social Security Act and Administrative Services Act of 1949 (40 schedule takes into consideration the costs on or after January 1, 1996. U.S.C. 759(a)(2)). incurred in providing the transportation and (2) The term ‘‘billing code abuse’’ means associated services as well as technological PART II—MEDICARE BILLING ABUSE changes. PREVENTION the submission to medicare carriers of claims for services that include procedure ‘‘(6) SPECIAL RULE FOR END STAGE RENAL SEC. 7171. IMPLEMENTATION OF GENERAL AC- DISEASE BENEFICIARIES.—The Secretary shall COUNTING OFFICE RECOMMENDA- codes that do not appropriately describe the total services provided or otherwise violate direct the carriers to identify end stage renal TIONS REGARDING MEDICARE disease beneficiaries who receive ambulance CLAIMS PROCESSING. medicare payment policies. transports and— (a) IN GENERAL.—Not later than 90 days (3) The term ‘‘commercial item’’ has the ‘‘(A) make no payment for scheduled am- after the date of the enactment of this Act, same meaning as in section 4(12) of the Office bulance transports unless authorized in ad- the Secretary shall, by regulation, contract, of Federal Procurement Policy Act (41 U.S.C. vance by the carrier; or change order, or otherwise, require medicare 403(12)). ‘‘(B) make no additional payment for carriers to acquire commercial automatic (4) The term ‘‘medicare part B’’ means the scheduled ambulance transports for bene- data processing equipment (in this sub- supplementary medical insurance program ficiaries that have utilized ambulance serv- chapter referred to as ‘‘ADPE’’) meeting the authorized under part B of title XVIII of the ices twice within 4 continuous days, or 7 requirements of section 7122 to process medi- Social Security Act (42 U.S.C. 1395j–1395w–4). times within a continuous 15-day period, un- care part B claims for the purpose of identi- (5) The term ‘‘medicare carrier’’ means an less authorized in advance by the carrier; or fying billing code abuse. entity that has a contract with the Health ‘‘(C) institute other such safeguards as the (b) SUPPLEMENTATION.—Any ADPE ac- Care Financing Administration to determine Secretary may determine are necessary to quired in accordance with subsection (a) and make medicare payments for medicare ensure appropriate utilization of ambulance shall be used as a supplement to any other part B benefits payable on a charge basis and transports by such beneficiaries.’’. ADPE used in claims processing by medicare to perform other related functions. (b) EFFECTIVE DATE.—The amendments carriers. (6) The term ‘‘payment policies’’ means made by this section shall apply to services (c) STANDARDIZATION.—In order to ensure regulations and other rules that govern bill- furnished under title XVIII of the Social Se- uniformity, the Secretary may require that ing code abuses such as unbundling, global curity Act on and after January 1, 1997. medicare carriers that use a common claims service violations, double billing, and unnec- processing system acquire common ADPE in essary use of assistants at surgery. PART IV—REWARDS FOR INFORMATION (7) The term ‘‘Secretary’’ means the Sec- implementing subsection (a). SEC. 7191. REWARDS FOR INFORMATION LEAD- (d) IMPLEMENTATION DATE.—Any ADPE ac- retary of Health and Human Services. ING TO HEALTH CARE FRAUD PROS- quired in accordance with subsection (a) PART III—REFORMING PAYMENTS FOR ECUTION AND CONVICTION. shall be in use by medicare carriers not later AMBULANCE SERVICES (a) IN GENERAL.—In special circumstances, than 180 days after the date of the enactment SEC. 7181. REFORMING PAYMENTS FOR AMBU- the Secretary of Health and Human Services of this Act. LANCE SERVICES. and the Attorney General of the United SEC. 7172. MINIMUM SOFTWARE REQUIREMENTS. (a) IN GENERAL.—Section 1834 (42 U.S.C. States may jointly make a payment of up to (a) IN GENERAL.—The requirements de- 1395m) is amended by adding at the end the $10,000 to a person who furnishes information scribed in this section are as follows: following new subsection: unknown to the Government relating to a (1) The ADPE shall be a commercial item. ‘‘(k) PAYMENT FOR AMBULANCE SERVICES.— possible prosecution for health care fraud. (2) The ADPE shall surpass the capability ‘‘(1) IN GENERAL.—Notwithstanding any (b) INELIGIBLE PERSONS.—A person is not of ADPE used in the processing of medicare other provision of this part, (except Section eligible for a payment under subsection (a) part B claims for identification of code ma- 1861(v)(1)(V)) with respect to ambulance serv- if— October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15699

(1) the person is a current or former officer to the Secretary under the program estab- SELECT COMMITTEE ON INTELLIGENCE or employee of a Federal or State govern- lished under paragraph (1) which is adopted Mr. NICKLES. Mr. President, I ask ment agency or instrumentality who fur- by the Secretary and which results in sav- nishes information discovered or gathered in ings to the program, the Secretary may unanimous consent that the Select the course of government employment; make a payment to the individual of such Committee on Intelligence be author- (2) the person knowingly participated in amount as the Secretary considers appro- ized to meet during the session of the the offense; priate. Senate on Wednesday, October 25, 1995, (3) the information furnished by the person at 2 p.m. to hold an open hearing on In- consists of allegations or transactions that NICKLES (AND BROWN) telligence Support to Law Enforce- have been disclosed to the public— ment. (A) in a criminal, civil, or administrative AMENDMENT NO. 2958 proceeding; Mr. NICKLES (for himself and Mr. The PRESIDING OFFICER. Without (B) in a congressional, administrative, or BROWN) proposed an amendment to the objection, it is so ordered. General Accounting Office report, hearing, motion to commit proposed by Mr. SELECT COMMITTEE ON INTELLIGENCE audit, or investigation; or BRADLEY to the bill S. 1357, supra; as (C) by the news media, unless the person is Mr. NICKLES. Mr. President, I ask the original source of the information; or follows: unanimous consent that the Select (4) in the judgment of the Attorney Gen- Strike all after ‘‘Finance’’ and insert: Committee on Intelligence be author- eral, it appears that a person whose illegal ‘‘with instructions to report the bill back to ized to meet during the session of the activities are being prosecuted or inves- the Senate forthwith including a provision Senate on Wednesday, October 25, 1995 stating: tigated could benefit from the award. at 9:30 a.m. to hold an open hearing on (c) DEFINITIONS.— ‘‘ ‘The maximum earned income credit for (1) HEALTH CARE FRAUD.—For purposes of a family with one child will increase from Intelligence Support to Law Enforce- this section, the term ‘‘health care fraud’’ $2,094 in 1995 to $2,156 in 1996 and the maxi- ment. means health care fraud within the meaning mum earned income credit for a family with The PRESIDING OFFICER. Without of section 1347 of title 18, United States Code. two or more children will increase from objection, it is so ordered. (2) ORIGINAL SOURCE.—For the purposes of $3,110 in 1995 to $3,208 in 1996.’; subsection (b)(3)(C), the term ‘‘original ‘‘and the effective date for section 7461, SELECT COMMITTEE ON INTELLIGENCE source’’ means a person who has direct and ‘earned income credit denied to individuals Mr. NICKLES. Mr. President, I ask independent knowledge of the information not authorized to be employed in the U.S.’, unanimous consent that the Select that is furnished and has voluntarily pro- shall be moved to taxable years beginning Committee on Intelligence be author- after December 31, 1994.’’ vided the information to the Government ized to meet during the session of the prior to disclosure by the news media. f (d) NO JUDICIAL REVIEW.—Neither the fail- Senate on Wednesday, October 25, 1995 ure of the Secretary of Health and Human AUTHORITY FOR COMMITTEES TO at 4 p.m. to hold a closed briefing on Services and the Attorney General to au- MEET intelligence matters. thorize a payment under subsection (a) nor The PRESIDING OFFICER. Without COMMITTEE ON ARMED SERVICES the amount authorized shall be subject to ju- objection, it is so ordered. dicial review. Mr. NICKLES. Mr. President, I ask SEC. ll. BENEFICIARY INCENTIVE PROGRAMS. unanimous consent that the Commit- SPECIAL COMMITTEE TO INVESTIGATE (a) PROGRAM TO COLLECT INFORMATION ON tee on Armed Services be authorized to WHITEWATER DEVELOPMENT AND RELATED FRAUD AND ABUSE.— meet on Wednesday, October 25, 1995, at MATTERS (1) ESTABLISHMENT OF PROGRAM.—Not later 10 a.m. in executive session, to consider Mr. NICKLES. Mr. President, I ask than 3 months after the date of the enact- unanimous consent that the Special ment of this Act, the Secretary of Health certain pending military nominations. and Human Services (hereinafter in this sec- The PRESIDING OFFICER. Without Committee to Investigate Whitewater tion referred to as the ‘‘Secretary’’) shall es- objection, it is so ordered. Development and Related Matters be tablish a program under which the Secretary COMMITTEE ON THE JUDICIARY authorized to meet during the session shall encourage individuals to report to the Mr. NICKLES. Mr. President, I ask of the Senate on Wednesday, October Secretary information on individuals and en- unanimous consent that the Commit- 25, 1995, to review the status of the spe- tities who are engaging or who have engaged tee on the Judiciary be authorized to cial committee investigation. in acts or omissions which constitute grounds for the imposition of a sanction meet during the session of the Senate The PRESIDING OFFICER. Without under section 1128, section 1128A, or section on Wednesday, October 25, 1995, at 10 objection, it is so ordered. 1128B of the Social Security Act, or who have a.m. to hold a hearing on religious lib- f otherwise engaged in fraud and abuse against erty. the medicare program for which there is a The PRESIDING OFFICER. Without ADDITIONAL STATEMENTS sanction provided under law. The program objection, it is so ordered. shall discourage provision of, and not con- COMMITTEE ON VETERANS’ AFFAIRS sider, information which is frivolous or oth- erwise not relevant or material to the impo- Mr. NICKLES. The Committee on BUDGET SCOREKEEPING REPORT sition of such a sanction. Veterans’ Affairs would like to request (2) PAYMENT OF PORTION OF AMOUNTS COL- unanimous consent to hold a hearing ∑ Mr. DOMENICI. Mr. President, I LECTED.—If an individual reports informa- on pending veterans’ health care legis- hereby submit to the Senate the budg- tion to the Secretary under the program es- lation at 10 a.m., on Wednesday, Octo- et scorekeeping report prepared by the tablished under paragraph (1) which serves as ber 25, 1995. The hearing will be held in Congressional Budget Office under sec- the basis for the collection by the Secretary tion 308(b) and in aid of section 311 of or the Attorney General of any amount of at room 418 of the Russell Senate Office Building. the Congressional Budget Act of 1974, least $100 (other than any amount paid as a as amended. This report meets the re- penalty under section 1128B of the Social Se- The agenda includes: An original bill curity Act), the Secretary may pay a portion to expand VA authority to contract for quirements for Senate scorekeeping of of the amount collected to the individual health care services; S. 293, a bill to au- section 5 of Senate Concurrent Resolu- (under procedures similar to those applicable thorize payments to the States of per tion 32, the first concurrent resolution under section 7623 of the Internal Revenue diem for veterans receiving adult day on the budget for 1986. Code of 1986 to payments to individuals pro- health care; S. 403, the Readjustment This report shows the effects of con- viding information on violations of such gressional action on the budget Code). Counseling Service Amendments of (b) PROGRAM TO COLLECT INFORMATION ON 1995; S. 425, a bill to require the estab- through October 24, 1995. The estimates PROGRAM EFFICIENCY.— lishment of mental illness research, of budget authority, outlays, and reve- (1) ESTABLISHMENT OF PROGRAM.—Not later education, and clinical centers; S. 548, nues, which are consistent with the than 3 months after the date of the enact- the Women Veterans’ Mammography technical and economic assumptions of ment of this Act, the Secretary shall estab- Quality Standards Act; S. 612, the Vet- the 1996 concurrent resolution on the lish a program under which the Secretary erans Hospice Care Services Act; and S. budget (H. Con. Res. 67), show that cur- shall encourage individuals to submit to the rent level spending is below the budget Secretary suggestions on methods to im- 644, a bill to reauthorize the establish- prove the efficiency of the medicare pro- ment of research corporations in the resolution by $3.6 billion on budget au- gram. Veterans Health Administration. thority and above the budget resolu- (2) PAYMENT OF PORTION OF PROGRAM SAV- The PRESIDING OFFICER. Without tion by $3.4 billion in outlays. Current INGS.—If an individual submits a suggestion objection, it is so ordered. level is $2.2 billion above the revenue S 15700 CONGRESSIONAL RECORD — SENATE October 25, 1995 floor in 1996 and $125.4 billion above the THE ON-BUDGET CURRENT LEVEL REPORT FOR THE U.S. program that moves families from wel- revenue floor over the 5 years 1996–2000. SENATE, 104TH CONGRESS, 1ST SESSION, SENATE fare dependency to independence. The current estimate of the deficit for SUPPORTING DETAIL FOR FISCAL YEAR 1996, AS OF Project Independence provides trans- purposes of calculating the maximum CLOSE OF BUSINESS OCTOBER 24, 1995 portation and child care—absolutely deficit amount is $249 billion, $1.2 bil- [In millions of dollars] essential elements in moving people lion above the maximum deficit from welfare to work. It helps partici- Budget amount for 1996 of $247.8 billion. authority Outlays Revenues pants build up self-esteem by showing them their own ability to succeed in Since my last report, dated October ENACTED IN PREVIOUS SESSIONS the work world. It also helps partici- 12, 1995, Congress cleared, and the Revenues ...... 1,042,557 Permanents and other spending pants receive their GED’s or high President signed the Agriculture Ap- legislation ...... 830,272 798,924 ...... school diplomas, associate or 4-year de- propriations Act—Public Law 104–37. In Appropriation legislation ...... 0 242,052 ...... Offsetting receipts ...... ¥200,017 ¥200,017 ...... grees, or skill training, and builds their addition, pursuant to section 205(b)(2) resumes through community service. Total previously enacted ... 630,254 840,958 1,042,557 of House Concurrent Resolution 67, the One Project Independence Program revenue aggregates for the concurrent ENACTED THIS SESSION in particular, the Hamilton Terrace resolution have been revised. These ac- Appropriation Bills Learning Center in Shreveport, has 1995 Rescissions and Department tions changed the current level of of Defense Emergency been singled out for its outstanding budget authority, outlays, and reve- Supplementals Act (P.L. 104–6) ¥100 ¥885 ...... success. Tomorrow, Vice President 1995 Rescissions and Emer- nues. gency Supplementals for GORE will name this second-chance Disaster Assistance Act high school a winner of an Innovations The report follows: (P.L. 104–19) ...... 22 ¥3,149 ...... in American Government Award from U.S. CONGRESS, Military Construction (P.L. 104–32) ...... 11,177 3,110 ...... the Ford Foundation and the John F. CONGRESSIONAL BUDGET OFFICE, Agriculture (P.L. 104–37) ...... 62,602 45,620 ...... Washington, DC, October 25, 1995. Authorization Bills: Self-Employed Kennedy School of Government at Har- Hon. PETE DOMENICI, Health Insurance Act (P.L. 104– vard University. This prestigious 7) ...... ¥18 ¥18 ¥101 Chairman, Committee on the Budget, U.S. Sen- award honors 15 initiatives each year ate, Washington, DC. Total enacted this session 73,683 44,678 ¥101 that have developed effective, creative DEAR MR. CHAIRMAN: The attached report PENDING SIGNATURE solutions to important social and eco- for fiscal year 1996 shows the effects of Con- Alaska Native Claims Settlement nomic problems. It carries with it a gressional action on the 1996 budget and is Act (H.R. 402) ...... 1 1 ...... $100,000 grant to disseminate informa- CONTINUING RESOLUTION current through October 24, 1995. The esti- AUTHORITY tion about Hamilton Terrace and en- mates of budget authority, outlays and reve- Continuing Appropriations, FY 1996 courage its replication. nues are consistent with the technical and (P.L. 104–31) 1 ...... 442,336 273,573 ...... ENTITLEMENTS AND MANDATORIES I have had the opportunity to visit economic assumptions of the 1996 Concurrent Budget resolution baseline esti- Hamilton Terrace twice and each time, Resolution on the Budget (H. Con. Res. 67). mates of appropriated entitle- ments other mandatory pro- I was impressed by the dedication of This report is submitted under Section 308(b) grams not yet enacted ...... 135,631 132,258 ...... and in aid of Section 311 of the Congressional Total Current Level 2 ...... 1,281,905 1,291,468 1,042,456 the staff and the motivation of the stu- Budget Act, as amended. Total Budget Resolution ...... 1,285,500 1,288,100 1,040,257 dents. Amount remaining: Hamilton Terrace Learning Center Since my last report, October 11, 1995, Con- Under Budget Resolution ...... 3,595 ...... Over Budget Resolution ...... 3,368 2,199 gress cleared, and the President signed the puts adult welfare recipients and stu- Agriculture Appropriations (P.L. 104–37). In 1 This is an estimate of discretionary funding based on a full year cal- dents expelled from other local high culation of the continuing resolution that expires November 13, 1995. It in- schools in the same classes, where the addition, pursuant to Section 205(b)(2) of H. cludes all appropriation bills except Military Construction, which was signed Con. Res. 67, the revenue estimates for the into law October 3, 1995, and Agriculture, which signed into law October 21, adults convey a strong message to the concurrent resolution have been revised. 1995. teens on the importance of taking 2 In accordance with the Budget Enforcement Act, the total does not in- These actions changed the current level of clude $3,275 million in budget authority and $1,504 million in outlays for school seriously and avoiding some of budget authority, outlays and revenues. funding of emergencies that have been designated as such by the President the mistakes they made. At the same Sincerely, and the Congress. Note.—Detail may not add due to rounding.• time, the teens give the welfare moth- JUNE E. O’NEILL, ers a fresh look back at their own be- f Director. havior, and give them a better sense of the role they can play in preventing THE CURRENT LEVEL REPORT FOR THE U.S. SENATE, FIS- WELFARE TO JOBS their children from making the same CAL YEAR 1996, 104TH CONGRESS, 1ST SESSION, AS ∑ Mr. BREAUX. Mr. President, we have mistakes. Putting these two groups to- OF CLOSE OF BUSINESS OCTOBER 24, 1995 heard a lot of horror stories about how gether brings out a strong sense of re- bad the welfare system is, how it dis- [In billions of dollars] sponsibility in both. courages people from getting married, Budget res- Current finding work, and taking responsibility The curriculum combines traditional olution (H. Current level over/ academic courses with vocational Con. Res. level 1 under reso- for themselves and their children. I 67) lution would agree that the system needs an training in fields such as food service, overhaul, and that is why I worked so travel and tourism, health care, and ON-BUDGET child care. Classes are longer and about Budget authority ...... 1,285.5 1,281.9 ¥3.6 hard on the Senate welfare reform bill Outlays ...... 1,288.1 1,291.5 3.4 we passed just last month. But I also half the normal size to allow teachers Revenues: 2 believe that, within this broken sys- time to get to know their students bet- 1996 ...... 1,040.3 1,042.5 2.2 ter. Lessons are tailored individually 1996–2000 ...... 5,565.4 5,690.8 125.4 tem, there are many places that have Deficit ...... 247.8 249.0 1.2 already begun to experiment with inno- to each student’s particular learning Debt subject to limit ...... 5,210.7 4,884.7 ¥326.0 vative solutions to their welfare prob- style. On Fridays, students either OFF-BUDGET lems. And some of these initiatives are spend their time in community service Social Security outlays: working—they are getting people off of or in counseling to work on specific 1996 ...... 299.4 299.4 0.0 welfare and into jobs. academic concerns, and teachers meet 1996–2000 ...... 1,626.5 1,626.5 0.0 for training and to work on solutions Social Security revenues: One of the best examples of this suc- 1996 ...... 374.7 374.7 0.0 cess is what is happening right now in to problems they are facing in the 1996–2000 ...... 2,061.0 2,061.0 0.0 my State of Louisiana. Since October classroom. 1 Current level represents the estimated revenue and direct spending ef- 1990, the number of families in Louisi- And it is all work-oriented. A school- fects of all legislation that Congress has enacted or sent to the President to-work coordinator works closely with for his approval. In addition, full-year funding estimates under current law ana receiving Aid to Families with De- are included for entitlement and mandatory programs requiring annual ap- pendent Children has dropped 20 per- the Shreveport Chamber of Commerce propriations even if the appropriations have not been made. The current to assist every student in planning a level of debt subject to limit reflects the latest U.S. Treasury information on cent. A report issued by the Public public debt transactions. Welfare Association in 1994 ranked course of study that will result in a 2 The revised revenue aggregate for the Budget Resolution is effective for Louisiana last in the country in AFDC good job after graduation. Every grad- the purposes of consideration of S. 1357, the Balanced Budget Reconcili- ation Act of 1995. caseload growth for 1989 through 1993. uate is guaranteed a job or enrollment Last in the country. That is good news. in post-secondary training. And that is due in large part to Their success has been outstanding. Project Independence, our statewide Of the school’s 118 graduates from the October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15701 class of 1994, 71 percent went on to col- nity effort. I cannot begin to relate the I ask that the text of the APS report be lege. Of the 58 graduates who were on excitement of the students at the printed in the RECORD at the conclu- welfare, all but 7 are working or in col- Osuna Elementary and the Garfield sion of my remarks. lege. At 21 percent, the school’s drop- Middle Schools as the entire student As we read report after report about out rate is considerably lower than the body met in their gymnasiums to the state of America’s children, and we State average of 51 percent—and that’s honor their character counts programs. know from talking with parents, teach- particularly good if you consider that The schools were celebrating the ers, and community leaders that chil- most students failed in the traditional word of the month, citizenship. The dren need strong and compassionate system. students were able to discuss what citi- support, I believe that the character Hamilton Terrace’s success is well- zenship meant and why it was impor- counts program is one effort that can known across Louisiana, and I am tant, and the little ones loved to shout help. As important, I believe the model proud that it will be recognized nation- out the spelling of ‘‘citizenship’’ or join established in cities across New Mexico ally as well. It is an outstanding exam- in the singing of the theme song about is the right approach. It is an all-en- ple of the real successes that are going character. The character counts mes- compassing approach that does not on all around us. I congratulate its sage is being delivered city-wide by start and stop with the ringing of a principal, John Baldwin, and all of its many different voices, and it is obvious school bell, or last for a single hour in staff and students for their good work.∑ the children and teachers are enthu- church or at a youth organization f siastic participants in this program. meeting. Instead, the communitywide After the successful startup of the approach really says that with a rather CHARACTER COUNTS WEEK Albuquerque character counts model, simple and single message, everyone ∑ Mr. DOMENICI. Mr. President, sev- other New Mexico communities started cares, and that everyone in that city is eral months ago, the Senate passed similar programs. Roswell invited willing to put time, money and energy Senate Resolution 103, designating the other nearby towns to join them in the behind its youth. week of October 15–21, 1995, as National effort so that the program could be de- Mr. President, for the last 2 years we Character Counts Week. Across the veloped beyond the city’s geographical have passed a resolution in support of country, hundreds of towns, cities, boundaries, and this communitywide National Character Counts Week. I schools, and 60 national organizations program has exceeded the expectation know I speak for the other nine Sen- ranging from the YMCA to the Little of the hundreds of organizations and ators of the Senate character counts League, encompassing about 35 million individuals who have joined forces to group when I say that our legislative young people and adults, celebrated support character counts. As an exam- efforts are a support mechanism for the this week. ple, in honor of Character Counts really important grass roots efforts we As most in this chamber are aware, Week, at the annual high school foot- see across this country. The reason character counts advocates the teach- ball game, the entire halftime program character counts programs are develop- ing of the six pillars of character, six was devoted to character counts. The ing in schools and communities across ethical values that transcend political, event included all of the high schools America is because there is a genuine cultural, religious, and socioeconomic and middle schools in the area. quest for resolving the problems of our differences: trustworthiness, respect, The State of New Mexico received young citizens. This program is an ap- responsibility, caring, fairness, and one of the Department of Education proach where everyone, young and old, citizenship. grants for developing character edu- can be part of a larger effort to make The character counts nationwide ef- cation programs, a grants program their towns and cities better places to fort is one whose time has come. As that we developed and passed on last work and live. It seems to me that this explained in the Carnegie Council on year’s Elementary and Secondary Edu- approach is well worth the effort, and I Adolescent Development report, cation Act. These funds will help many offer my congratulations to the thou- ‘‘Great Transitions,’’ adolescents need other New Mexico communities who sands of committed citizens who are help and support from not just their are initiating similar character edu- working together and building a pro- families and schools, but also the en- cation programs in their schools and gram not only for the good of the tire community. I agree with the state- youth organizations. present, but also for the next, genera- ment of Julius Richmond, professor of tion of Americans. To emphasize that this issue is one of health policy at Harvard Medical The report follows: School and surgeon general under concern to millions of Americans be- sides New Mexicans, I think it is note- APS CURRICULUM SUPPORT President Carter, ‘‘The schools go their The Albuquerque Public School District way, the after-school programs go their worthy that after Roswell was featured on a nationally televised news story, opened the 1995–96 school year with renewed way. . . . This report really points out dedication to the principles of character edu- my State office has received more than the importance of all community re- cation as exemplified in the Character sources coming together.’’ 1,000 requests from all across the coun- Counts! philosophy. What began in APS as a The idea of a total community ap- try for information about establishing grass roots movement in schools interested proach is an important one. This is a character counts program. This is in promoting more productive behavior in why I am such an enthusiastic sup- something new and vibrant—an ap- their students has grown to be a focus area proach that touches the lives of chil- in the strategic planning process for the dis- porter of the character counts pro- trict and a major educational goal of the Su- grams across the State of New Mexico. dren and adults alike. It reaches out to encircle the youth with similar mes- perintendent. When the Board of Education By way of background, about a year for the Albuquerque Public Schools endorsed ago, I asked the Mayor of Albuquerque sages—that respect and responsibility the pillars of character as named in the Jo- Martin Chavez (D), to join me in a bi- and caring, for example, are appro- sephson Foundation’s Aspen Declaration, it partisan effort to establish a com- priate responses and actions. wisely left the implementation of this phi- munitywide character counts program. The Albuquerque Public School Dis- losophy up to the teachers and principals of We pursued this effort with the local trict, consisting of 118 schools, has now the 188 schools in the district. What followed was an outpouring of interest and action as churches, the entire Albuquerque pub- developed an extensive and remarkable program. As stated in their recent re- schools enthusiastically integrated the pil- lic school system, civic and social or- lars of character: trustworthiness, respect, ganizations, unions, the police depart- port: responsibility, citizenship, caring, and fair- ment, parent groups, and the private What began in APS as a grass roots move- ness, into their own curricula. sector. As a result, Albuquerque be- ment in schools interested in promoting For 1995–96 APS has adopted a goal for came the first city in America to adopt more productive behavior in their students, character education, stating, ‘‘The Albuquer- a citywide character counts program. has grown to be a focus area in the strategic que Public Schools will provide learners of Several weeks ago, the spokesman planning process for the district and a major all ages the knowledge and ethical founda- educational goal of the superintend- tion needed to become productive citizens in for the national Character Counts Coa- ent. . . . What followed was an outpouring our community.’’ Objectives to meet this lition, actor and producer Tom Selleck, of interest and action as schools enthusiasti- goal are: joined me in Albuquerque to visit cally integrated the pillars of character into The Albuquerque Public Schools has en- schools participating in this commu- their own curricula. dorsed and will support the Character S 15702 CONGRESSIONAL RECORD — SENATE October 25, 1995 Counts! program as a way to develop char- ported by a grant through the New Mexico fore oil was discovered in the North acter based on the six core ethical values. State Department of Education and the U.S. Slope, it was part of the largest intact The Albuquerque Public Schools will con- Department of Education. The New Mexico wilderness in the United States. The tinue collaborations with community enti- Character Education Pilot Project will allow oil development of the North Slope has ties to reach agreements about the role of the school district to continue its formal each in promoting ethical behavior among plans to provide extended training in char- resulted in hundreds of open waste pits young people and adults in various aspects of acter education, further develop a marketing containing millions of gallons of oil in- life. component, involve parents and community dustry waste and the destruction of The Albuquerque Public Schools commit members as active partners in character edu- thousands of acres of wildlife habitat. to creating models of ethical behavior cation, mentor a Native American school/ There is no reason to believe that the among all adults who serve students and community in character education, and de- drilling of the coastal plain would schools. velop a clearinghouse for information relat- produce any less devastating effects. The APS Core Curriculum will continue to ed to character education. give explicit attention to character develop- The true joy in the growing involvement of The damage caused by the construction ment as an ongoing part of school instruc- APS schools in character education is found of oil rigs, roads, and pipelines and the tion. Materials, teaching methods, partner- not in administrative structure and plan- inevitable oil and chemical spills are ships, and services for school programs shall ning, but in the classrooms and school pro- simply not worth the assumed revenues be selected by APS, in part, for their capac- grams developed to support Character of this short term private gain induced ity to support the development of character Counts. Examples of student participation pillaging. among youth and adults. include school Character Counts kickoffs The Albuquerque Public Schools will pro- As stewards of our few remaining like the one at Cochiti Elementary School wildlife refuges, I believe that we have vide training to enable schools and other ad- where staff and students celebrated the word ministrative units to implement the prin- of the month with original songs, raps, and an obligation to protect them and the ciples of character education. poetry, all focused on ‘‘Respect.’’ At this animals that seek shelter within them. All schools will examine school curricu- school, student-authored slogans are an- Mr. President, I also ask that an edi- lum, classroom practices, and extra curricu- nounced daily and posted in the cafeteria to torial by Jessica Mathews, which ap- lar activities to identify and extend opportu- remind everyone to be respectful to self and peared in the Washington Post on Oc- nities for developing character. to others. At Sombra del Monte Elementary tober 23, 1995, be printed in the RECORD. APS School to Work initiatives will inte- School, teachers and parents performed skits grate character education with the employ- demonstrating ‘‘respect’’ to the delight of The article follows: ability skills necessary to prepare students their students. Students at Chelwood [From the Washington Post, Oct. 23, 1995] to enter the workplace. launched their program as they released bal- LUSTING AFTER BLACK GOLD The emphasis on character education in loons, each representing a pillar of Character the public schools has been met with imme- Counts. The students attached cards to the (By Jessica Mathews) diate and enthusiastic support in the busi- balloons, asking the finder to return the card Alaskans think they have a terrible finan- ness and volunteer community in Albuquer- to the school. Children at Wherry Elemen- cial problem. To solve it they propose to ruin que. Members of the Leadership Council tary School sang a rap they composed about the last protected fragment of the arctic formed to support Character Counts! include character and children performed examples coastal plain—part of the Arctic National representatives from financial institutions, of ‘‘do’s’’ and ‘‘don’ts’’ of good character at Wildlife Refuge (ANWR)—by opening it to oil non-profit youth agencies, Sandia National an all school assembly. Middle school activi- drilling. Laboratory, the NAACP, the NM Bar Foun- ties include rewarding students at Madison Here’s the problem. Alaska has no state in- dation, the Chamber of Commerce, the City Middle School for demonstrating behavior come tax, no sales tax and the lowest fuel of Albuquerque, the Albuquerque Teachers related to the six pillars by presenting cou- taxes in the nation. It has the highest per- Federation, and others. This coalition was pons good for redemption at local businesses, capita income from the federal government formed to support the Character Counts ini- and holding a Jog-A-Thon to kickoff activi- of any state. State spending is twice the na- tiative financially, and by giving parents in ties at Grant Middle School. McKinley Mid- tional average. And it has an $18 billion sav- the work force the same message given to dle School hosted a breakfast for its school ings account, the Permanent Fund, that pro- their children in schools. The marketing bus drivers to begin their pilot project inte- vides an annual Christmas-in-September committee from this council planned and im- grating school bus safety and the concepts of check of a little less than $1,000 for every plemented a Character Counts rally in Albu- Character Counts. Eldorado High School stu- man, woman and child. You might think of querque’s Civic Plaza. Character Counts day dents are reminded of Character Counts with it as Saudi Alaska. at the New Mexico State Fair, and numerous the printing of the six pillars above all Here’s the bad news. The North Slope oil other events to support the program. Citi- school doorways. revenues that underwrite this easy living are zens of Albuquerque read the Character While APS is presently caught up in the drying up, and the state now has a half-bil- Counts message on billboards, on soft drink launching of the Character Counts! philoso- lion-dollar deficit that’s heading skyward. cans, and in city utility bills. phy, members of the district know that the One can still think offhand of about 49 gov- As schools begin conversations based on true test of the value of this initiative will character education, they enjoy the freedom ernors who would love to have a fiscal prob- lie far down the road for our young students. lem like Alaska’s. Solutions leap to the to plan learning activities tailored for their The participants in Character Counts in the own students, staff, and communities. Dis- mind. Impose a small sales tax. Raise the Albuquerque Public Schools believe the true fuel tax a bit. Cut the most egregious spend- trict support for these ventures in the first value in this program will be measured in year included a training session given by Mi- ing frills. Use some of the income from the succeeding years, when student learning and oil-funded savings account for the purpose chael Josephson, founder of Character behavior reflects not only the enthusiasm of Counts, for representatives of each geo- for which it was created instead of as a uni- launching a worthwhile program, but dem- versal bonus entitlement. Alaskans have a graphical cluster of schools. There teachers, onstrates the internalization of the six pil- parents, and administrators will act as train- different answer. Drill ANWR—and hope that lars of Character Counts.∑ ers and facilitators for the rest of the school puts off the day of reckoning for a few more district and community. Other support ac- f years. tivities included the development of a bibli- In an unguarded moment of honesty, Alas- ography for Character Counts based on the ARCTIC NATIONAL WILDLIFE ka’s congressional delegation—Sens. Ted six pillars, a parent manual for use in REFUGE Stevens (R) and Frank Murkowski (R) and schools, and a manual for administrators in- ∑ Mr. GRAHAM. Mr. President, I would Rep. Don Young (R)—made the linkage ex- terested in initiating a program in their own like to take a few moments to speak on plicit in a recent letter to constituents. The schools. relevant passage says, in full: ‘‘Oil revenue the Arctic National Wildlife Refuge. funds about 85 percent of the state’s budget, Second year support activities include the In their budget reconciliation pack- distribution of a commitment form for but Prudhoe Bay is in decline. The adminis- schools to indicate their plans for character age, Republican budget planners have tration is threatening to veto legislation to education to district administrators, fol- mandated the oil exploration and drill- open the coastal plain.’’ lowed by a starter kit to be distributed to in- ing of the fragile coastal plain of the The other arguments for drilling in the ref- terested teachers and students. Other admin- Arctic National Wildlife Refuge. This uge range from flimsy to specious. For years, istrative units in the public schools have de- 125-mile stretch is the last protected a favorite has been that it would enhance na- veloped their own plans for character edu- area of the 1,100-mile Alaskan coast- tional security by reducing the country’s oil cation, including a program for school bus line. It is home to many precious spe- import dependence. That won’t wash any- more since Congress and the administration behavior and safety. Join-A-School business cies including caribou, polar bears, partnerships in 1995–96 will focus on respect, have agreed to lift the 22-year-old ban on ex- responsibility, and trustworthiness as dem- golden eagles, and grizzly bears. porting Alaskan oil. If we need to reduce oil onstrated in school-to-work training. We have all seen the devastation imports, why export our own? Much of the growth in the second year of wreaked by the drilling of the North The best came Presidents Reagan and Bush Character Counts involvement will be sup- Slope of Alaska and Prudhoe Bay. Be- could make for opening ANWR was that October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15703 chances were one in two that its production vision should not be enacted and urge and in the most appropriate setting, would rise in a few years to 4 percent of U.S. the conferees on H.R. 2099 to drop it. assuring our Nation’s veterans that oil use, dropping to one percent five years Mr. President, as I noted in that de- they could receive the care they need. later and less thereafter. Not surprisingly, bate, this provision discriminates Specifically, it would ensure that VA Congress didn’t find that a compelling rea- son to make an irreversible sacrifice of the against a small group of veterans: health care providers are granted the wilderness. If in some presently unimagina- those who are mentally disabled. It freedom to treat veterans on an out- ble future the nation absolutely required does terrible harm to these veterans. patient basis when appropriate and ANWR’s oil it would still be there for the One proponent of the provision ex- would broaden the VA’s authority to taking. pressed the view that the provision contract for outpatient services. In Since then, the U.S. Geological Survey has does not affect the standard of living or other words, the VA at long last could slashed the expected find by more than half. the condition of any veteran. I dis- pursue methods of treatment based on An offshore well drilled in one of the most agree. medical and economic common sense, promising areas was a bust. Another hit oil but not in developable quantity, though the Mr. President, let me describe the benefiting veterans and providers company, Atlantic Richfield, is still enthu- situation of a veteran who called my alike. siastic. office to explain how this provision af- Let me highlight some of the key Meanwhile, the expected market in which fects her. She is from New Mexico. She provisions of this innovative legisla- ANWR oil would have to compete, has turned receives VA compensation for a mental tion which is of major importance to from tight to squishy. Projected oil prices disorder that resulted from her mili- America’s veterans. It would: for the year 2000 are down from $38 to $19 per tary service. At times over the years, Enable VA, within appropriations, to barrel. That turns the industry’s five-year- her disability has been particularly bad old projection, which it is now shamelessly provide all needed hospital care and recycling, of 700,000 jobs created nationwide, and she has been rated incompetent by medical services to eligible veterans, from highly unlikely to laughable. VA. Right now, she is doing better and including preventive and home health The last-resort claim is that drilling won’t is not rated incompetent. However, she care; make much difference to this narrow plain never knows when things will turn bad Call for VA to manage the provision that is the biologically crucial part—the again and she will again be at risk of of care and services through enroll- birthing, denning, feeding and nursery being rated incompetent. ment or registration, based on a sys- ground—of a much larger, fragle and unique Because of this risk, she told com- tem of priorities; arctic ecosystem. But no matter how envi- mittee staff that, if this provision is ronmentally sensitive the effort, 400 miles of Assign priority for enrollment in the roads, 11 production facilities, four airstrips, enacted, she will not go to the VA hos- following order: First, veterans 30 per- two ports, massive gravel mining and hous- pital for treatment because she is cent or more service-connected dis- ing for several thousand, plus associated afraid they will determine her condi- abled, second, former POW’s and veter- emissions and toxic wastes are not what tion is worse and they will recommend ans with service-connected disabilities most peole expect of wilderness. Neither will she be rated incompetent. If that hap- rated 10 or 20 percent, third, veterans the plants and animals. pened, she would lose her compensa- receiving aid and attendance or house- What’s left? A short-term fix that might or tion. Then she would lose her house be- might not prolong the oil-welfare state. Not bound benefits and otherwise eligible much there to arouse support, even in Wash- cause she could not make the mortgage veterans who suffer from a cata- ington. So the state’s powerful congressional payments. That is what she said. So, strophic disability, fourth, veterans delegation, whose members chair both the she will not seek treatment. unable to defray the cost of medical House and Senate Natural Resources Com- Mr. President, I understood that this services, and fifth, all others; mittees, came up with a sweetener. They bill would take away disability com- Give VA discretion to determine how propose to give half of the hoped-for leasing pensation from incompetent veterans an enrollment system would operate revenue to Washington, which helps make whose estates exceed $25,000, and I have and authority to set additional prior- the numbers work in the Republicans’ defi- opposed it as rank discrimination cit-reduction plan. If Congress counts on the ities within the above priority groups; money, however, it is playing a chump’s against a small group of veterans who and game. The state has promised to sue for any are unable to protect themselves. Until Protect specialized VA programs, split less than the 90 percent it believes is this veteran called, however, I had not such as those for veterans with spinal guaranteed by its Statehood Act. focused on how this provision would in- cord injuries and post-traumatic stress Alaska’s congressmen want the name of hibit the very people we are trying to disorder. the Arctic National Wildlife Refuge changed help from seeking medical treatment. I Mr. President, I want to stress that to the Arctic Oil Reserve. It’s revealing that am convinced that this woman’s condi- this legislation not only enjoys broad what’s gone is not just wildlife, but the na- tion will be affected by this provision. tional interest as well. Until Congress acts, bipartisan support in the House, but they unilaterally have adopted a new acro- She is so afraid of this provision she that it is very much in the spirit of the nym, AOR. If the ANWR proposal does pass, will not seek the help she needs—help Senate Appropriations Committee re- the delegation has a lot more to follow, in- she has earned—help she is entitled to. port issued last month on the VA, cluding develop in the Tongass National For- That is what this provision does to HUD, and Independent Agencies Appro- est and turning back 70 million acres of fed- mentally disabled veterans. That is priations bill under the aegis of my dis- eral lands to the state. why it should be dropped in the con- tinguished colleagues Senators BOND Instead, Congress should give the ANWR ference report.∑ proposal the treatment it deserves. In the and MIKULSKI. spirit of adopting new acronyms it could f This report noted the committee had send along a message as well: GRA. Get Real, included a provision ‘‘enabling VA to Alaska. The rest of us would trade for your VETERANS HEALTH CARE treat veterans eligible for hospital care troubles. Face the real choices now—ANWR ELIGIBILITY REFORM ACT OF 1995 or medical service in the most efficient isn’t the answer.∑ ∑ Mr. WELLSTONE. Mr. President, I manner,’’ adding that the Committee f understand that the House Budget Rec- supported the VA’s efforts ‘‘to shift as onciliation bill incorporates the provi- much of its inpatient workload to am- DISCRIMINATION AGAINST sions of the ‘‘Veterans Health Care Eli- bulatory care settings as possible, to MENTALLY DISABLED VETERANS gibility Reform Act of 1995,’’ a draft make better use of its resources.’’ This ∑ Mr. ROCKEFELLER. Mr. President, bill which addresses some of the criti- is precisely what the House bill seeks on September 26, during the Senate de- cal problems faced both by veterans to accomplish. bate on H.R. 2099, the VA–HUD appro- seeking health care and by the VA in I also want to underscore that this priations bill, I offered an amendment providing health care services. I ap- legislation has won widespread support to strike a provision in the bill which plaud the sponsors of the bill for their from numerous veterans service orga- would discontinue disability compensa- efforts to help the VA fulfill its lofty nizations [VSO’s], experts on veterans tion payments to certain mentally dis- purpose: to take care of those who have health care, and the VA. abled veterans when their savings served their country with pride and There have, however, been widely dif- reach $25,000. Unfortunately, my honor. fering estimates from the VA and CBO amendment was not adopted. I con- The House bill would enable the VA on how the bill will affect demand for tinue to believe strongly that this pro- to provide its services more efficiently VA services and what impact if any it S 15704 CONGRESSIONAL RECORD — SENATE October 25, 1995 will have on the VA budget, even working closely with him on prepara- out my near two decades on the Senate though the bill specifies that it is to be tions for the hearings.∑ Finance Committee. implemented within appropriations. f While there could only be one winner While the VA contends the House pro- today, the election is not so much a posal is budget neutral and that it ELECTION OF JOHN J. SWEENEY victory for John Sweeney, but for the would make available as much as $268 AS PRESIDENT OF THE AFL-CIO labor movement as a whole. Let there million within 2 years to expand VA be no question that Mr. Sweeney has ∑ Mr. MOYNIHAN. Mr. President, for outpatient services, CBO estimates the past three months, two of the na- his work cut out for him, as they would that any savings will be offset by over tion’s foremost labor leaders, John J. say in the ‘‘ICG’’, for this is a critical $3 billion in costs incurred as a result Sweeney and Thomas R. Donahue, have time in labor’s history. But his record of increased demand for VA outpatient campaigned for the presidency of the as an organizer of workers promises care. A number of VSO’s have joined AFL-CIO. This afternoon in New York great things. And may I say that it is the VA in taking sharp issue with the City at the AFL-CIO’s biennial conven- a tribute to New York and to the Bronx CBO cost analysis. tion, the delegates chose Mr. Sweeney. especially that in these turbulent Mr. President, it seems that propos- I rise to congratulate him, and Thomas times for labor, the membership of the als which satisfy so many needs of both Donahue as well, for their dedication, AFL-CIO has once again entrusted its patients and their health care provid- service, and not least, their civilities. leadership to a New Yorker. I wish my friend John Sweeney great things as he ers deserve our deepest commitment Mr. Sweeney and Mr. Donahue re- embarks on the newest phase of his re- and support, but at the same time we main strong and united in their pledge markable career. need to fully explore the consequences to lead the labor community into the The origins of today’s AFL-CIO go of such reforms. We need to change the next century. Both are sons of Irish back to 1881, or some will argue 1886. way veterans receive their health care. working class families from the Which is to say, in the first century of That much is clear from how eager Bronx—home of another great labor the American nation. They have sus- both sides of the equation—patients leader, the legendary George Meany. tained their principles and organiza- and providers—are to make the same As friends and allies in the labor move- tion into what is now the third century changes. But we also need to ask our- ment for over 35 years, Mr. Sweeney of our nation. It has been a remarkable selves: ‘‘What are the costs if any?’’; and Mr. Donahue have vied for the and eventful journey and it is only Could these reforms cause other unin- presidency with energy, but without begun. I stand with them in solidarity tended problems in the future?; Will bitterness. There is much we in politi- and joy for this fine moment. the proposed reforms alleviate prob- cal life can learn from such earnest and ∑ lems plaguing the VA health care sys- talented men. Victory need not mean f tem?; and Will cuts in Medicare and vanquishing the opponent. Good ideas ‘‘AMERICA, I LOVE YOU SO’’ Medicaid lead to increased demand for are not the province of any one faction. VA services so that the need for eligi- These are the lessons John Sweeney ∑ Mr. REID. Mr. President, I rise today bility reform becomes even more press- and Tom Donahue have taught us all. to recognize the work of a well known, ing? We need answers to each of these There is more to these men than long time resident of Las Vegas. Mike pivotal questions before we can pro- their recent contest. There is much Corda is a very accomplished song- ceed. testimony given to the value of work writer, having written songs for such I strongly believe that the provisions and the dignity that comes from hav- artists as Robert Goulet, Sammy Davis in the House bill or some variant of ing a job. John Sweeney and Tom Jr., Nancy Wilson, Wayne Newton, and these provisions could at the very least Donahue, and the millions they rep- Lou Rawls. But as successful as he has provide a vital first step to achieve resent, embody those values even as been as a songwriter, Mike’s greatest long-overdue eligibility reform, and to they advance them. pride comes from his service to this do so in a responsible manner. How- It is prophetic that John Sweeney, country as a United States Marine. In ever, we first need to sit down and get born in St. Joseph’s parish in the the wake of the Oklahoma City bomb- all the facts out on the table so we can Bronx—named for the patron saint of ing, Mike rolled up his sleeves and come up with clear answers to complex working men and women—has been went back to work to put the finishing questions. chosen to lead the 13 million members touches on a song that would capture In anticipation of the possibility that of the AFL-CIO. The son of a bus driv- the patriotic pride of yesterday. That the provisions of the House veterans er, he learned the value of a job and the song, is entitled ‘‘America, I Love You bill will not be included in the final dignity of hard work from his father. So’’ and I ask that the lyrics of the Senate/House version of the budget rec- Mr. Sweeney first joined a union as a song be printed in the RECORD. onciliation package, I propose that the part-time grave digger while attending The lyrics follow: Committee on Veterans’ Affairs con- Iona College in New Rochelle, New AMERICA, I LOVE YOU SO duct hearings to solicit the views of York, and began his trade union career America, I love you, those who would be affected by such re- in 1950 with the International Ladies’ No place on Earth can match your style. forms and those who have thoroughly Garment Workers Union. Later, in 1961, Your helpin’ hand’s world famous— And your heart is in your smile. investigated their future effects on vet- he joined Local 32B of the Service Em- erans’ health care and their budgetary ployees International Union (SEIU), No nation rates above you, impact. I would welcome the chance Where seeds of freedom proudly grow— and eventually rose through the ranks I feel the need to ‘‘fall in’’, for the committee to hear from rep- to become the SEIU’s President in There’s something here that’s callin’, resentatives from the VA, VSO’s, the June of 1980. Today, this union, rep- America, I love you so. Congressional Budget Office, and any- resenting doormen, elevator operators, No nation rates above you. one else who could bring crucial in- custodians, all manner of workers, is When into outer space you go sights to the forum. We need to include 1.1 million members strong. I feel the need to ‘‘fall in’’ all viewpoints, to look critically at all Tom Donahue, another Bronx native, There’s something here that’s callin’, data, and to listen to all voices before has had an equally long and distin- America, I love you so— we can move forward responsibly. We guished career in the labor movement. America . . . I love you so! need to institute eligibility reform but He has served most recently as the (Words & Music by Mike Carda)∑ we need to carefully craft reform to en- Acting President of the AFL-CIO after f sure that it improves the quality of VA Lane Kirkland stepped down in August health care, makes it more user friend- of 1994. Mr. Donahue began his career ORDERS FOR THURSDAY, OCTOBER ly, and increases its cost effectiveness. at the AFL-CIO as Executive Assistant 26, 1995 I have requested that my distin- to George Meany, and was later elected Mr. NICKLES. Mr. President, I ask guished colleague Chairman SIMPSON to serve as Secretary-Treasurer, a post unanimous consent that when the Sen- hold hearings on this topic when fea- he held for many years. I am indebted ate completes its business today, it sible and, if he concurs, look forward to to him for advice, and counsel through- stand in adjournment until the hour of October 25, 1995 CONGRESSIONAL RECORD — SENATE S 15705 9 a.m., Thursday, October 26; that fol- lowed by amendments or motions rel- APPOINTMENT BY THE VICE lowing the prayer, the Journal of pro- ative to education, deficit reduction PRESIDENT ceedings be deemed approved to date, and rural restoration. The PRESIDING OFFICER. The no resolutions come over under the The PRESIDING OFFICER. Without Chair, on behalf of the Vice President, rule, the call of the Calendar be dis- objection, it is so ordered. pursuant to Public Law 86–380, appoints pensed with, the morning hour be the Senator from Wyoming (Mr. THOM- deemed to have expired, and the time f AS) to the Advisory Commission on for the two leaders be reserved for their Intergovernmental Relations, vice Sen- use later in the day, and the Senate PROGRAM ator DORGAN. immediately resume consideration of calendar No. 216, S. 1357, the reconcili- Mr. NICKLES. Mr. President, for the f ation bill, and Senator BRADLEY be rec- information of all Senators, the Senate ADJOURNMENT UNTIL 9 A.M. ognized for up to 30 minutes for debate will resume consideration of the rec- TOMORROW on the EITC motion. onciliation bill tomorrow morning at 9 The PRESIDING OFFICER. Without a.m. Therefore, Members can expect Mr. NICKLES. Mr. President, if there objection, it is so ordered. votes throughout Thursday’s session of is no further business to come before Mr. NICKLES. I further ask unani- the Senate on amendments, but those the Senate, I now ask unanimous con- sent that the Senate stand in adjourn- mous consent that following the re- votes are not expected prior to 12 noon. marks of Senator BRADLEY, Senator ment under the previous order. The Senate is expected to be in session GRAHAM or Senator PRYOR be recog- There being no objection, the Senate, late into the night in order to complete nized to offer a motion to recommit at 11:58 p.m., adjourned until Thursday, with respect to Medicaid, to be fol- action on the reconciliation bill. October 26, 1995, at 9 a.m. October 25, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2027 EXTENSIONS OF REMARKS

THE UNITED STATES MISSION IN mas that the passage of time would be sure first treats Bosnia as a case of Serb aggres- BOSNIA to magnify. Therefore, the administration, sion calling for a collective response by the Congress and NATO must clarify goals and world community or NATO or the United strategies in Bosnia. The agreements they States. Convinced that Serbia should be pun- HON. TOM LANTOS reach must be incorporated into the peace ished, this school of thought would fortify OF CALIFORNIA negotiations slated to begin Oct. 31. Far bet- the Bosnian Muslims with American arms, IN THE HOUSE OF REPRESENTATIVES ter to pay the price to delay than to have a instructors and perhaps air support to resist NATO peacekeeping effort break down under pressures and reestablish a multi-ethnic, Wednesday, October 25, 1995 the weight of its internal contradictions or unitary state. Advocates of this approach Mr. LANTOS. Mr. Speaker, I commend my of American domestic pressures. Repeating consider a cease-fire tantamount to collu- colleagues' attention to an excellent analysis the experience of Somalia, where an ill-de- sion with aggression, and are willing to of the difficult issues surrounding a possible fined commitment concluded in ignominious agree to American peacekeeping forces only withdrawal, would gravely damage Ameri- United States troop deployment in Bosnia by to provide a secure basis from which to com- ca’s leadership position in the world as well pel dissident Serbs and Croats to return to a our former Secretary of State and my good as in the Atlantic Alliance. unified Bosnia. friend, Dr. Henry Kissinger. The article, which Recent American efforts to bring peace to The other point of view sees Bosnia as an appeared in last Sunday's Washington Post, Bosnia have been constructive. American ethnic conflict sparked by thoughtless NATO rightfully calls for Presidential leadership and power was used skillfully, and our negotiator decisions in 1991 to treat Bosnia as a unitary congressional approval for a well-defined and Richard Holbrooke has displayed persistence state, which it is not and never has been. realistic mission in BosniaÐincluding Amer- and ingenuity. Composed of Croats, Serbs and Muslims unit- Nevertheless, before we go any further we ed only by their common determination ican military forces. must examine the two ‘‘commitments’’ made Dr. Kissinger offers a persuasive argument never to be ruled by either of the other by President Clinton that created the di- groups, the resulting—nearly inevitable— for why a U.S. participation in such a NATO lemma on the horns of which we are in dan- ethnic conflict was waged with the barbar- mission is necessary, and he identifies the ger of being impaled. The first was to prom- ities unfortunately characteristic of all its dire consequences for inaction. The President ise some 10,000 troops to assist in the with- forerunners. has extended a ``commitment of U.S. troops drawal of British and French forces should While the Serbs initiated the present round for every foreseeable contingency,'' according our NATO allies abandon their effort. The of slaughter, they would no doubt hark back second was to pledge an American contin- to comparable depredations inflicted by to Dr. Kissinger, and therefore must lead Con- gent of 25,000 toward a NATO force of 50,000 gress and the American public in a discussion Croats and Muslims within the memory of if a Bosnian peace agreement is concluded. most family groups. Early resistance by the of American objectives in the Balkans. Both undertakings, amounting to a commit- Western allies to ethnic cleansing might well ment of U.S. troops for every foreseeable I enthusiastically agree with Dr. Kissinger's have stopped the outrage, but by now too contingency, represented attempts to ease call for an open and frank discussion of these many brutalities have been wrought by all immediate pressures without examining the extremely important matters, and I hope that a groups against their enemies to envision co- debate of this magnitude, on an issue where full implications. The commitment to facilitate British and existence under a single government as a re- American lives will be at stake, will not be French withdrawal was designed to provide a alistic option. Indeed, such a project would court resump- tainted by partisan politics. I made that point safety net to encourage our allies to con- during the recent International Relations Com- tinue NATO’s role in Bosnia. If a peace tion of the slaughter. Any change in terri- mittee hearing on this issue with Secretary of agreement fails, the nearly inevitable Brit- torial boundaries by any side would produce ish and French withdrawal is expected to ethnic cleansing; the quest for a unitary State Warren M. Christopher, Secretary of the state is therefore a prescription for open- Treasury William J. Perry, and chairman of the last 24 weeks, assuming such a redeployment is possible at all. ended war and continued suffering. Joint Chiefs of Staff Gen. John Shalikashvili. Whatever the schedule, a situation in So far the administration has tried to In the past partisanship stopped at the water's which American forces were being commit- carry water on both shoulders. Its policy has edge, but lately, unfortunately, our Nation's ted while allied forces were progressively promoted a cease-fire, which implies parti- foreign policy has become a domestic political being reduced could tempt the three Bosnian tion, while its rhetoric has advocated a uni- issue, and this has made it increasingly dif- ethnic rivals to involve us in their brutal tary, multi-ethnic Bosnia that is unachievable without continued war. Our ac- ficult to conduct a rational and effective inter- struggle, whether by inflicting casualties to speed up withdrawals or by trying to incite tion on the ground is not synchronized with national policy. our rhetoric. As a result, the peacekeepers Mr. Speaker, I urge my colleagues to read us against ethnic enemies by committing atrocities that would be blamed on the other could end up in an intellectual as well as and carefully consider the issues raised by Dr. side, as has already happened. And at a mo- physical no man’s land. Is the central gov- Kissinger and to fully participate in the upcom- ment when our allies had washed their hands ernment entitled to try to extend its author- ing debate. of the whole affair, our military commit- ity? Can the various ethnic enclaves receive [From the Washington Post, Oct. 22, 1995] ment would become increasingly lonely. arms from the outside? Who controls the armed forces of the state and how? WHAT IS THE MISSION? Thus the deployment of American forces to cover a British and French retreat is the We need to stop dodging the central issue. (By Henry Kissinger) most precarious option. But an American re- An independent, ethnically diverse Bosnia President Clinton’s pledge to contribute fusal to police a settlement would be likely would require a concerted Western strategy 25,000 American troops to a peacekeeping to make such a deployment unfavorable. with a vast program of troops, arms and force for Bosnia has been greeted with a mix- I opposed the War Powers Act when it was training and constitutional tutoring for an ture of resignation and uneasiness. Resigna- legislated; current domestic realities, how- indefinite time. Are we and our allies pre- tion because, despite deep misgivings, it ever, permit no other choice than to obtain pared for a program of transforming peace- would be a grievous blow to NATO if Amer- clear and unambiguous congressional back- keeping into nation-building—as we were not ica failed to back an agreement it had nego- ing. As a first step, the administration must in Somalia—and for the casualties it entails? tiated on behalf of NATO—an agreement answer these threshold questions: What ex- Would it actually work? How would other that U.S. air power, buttressed by British actly is the peacekeeping force supposed to countries, especially Russia, react? and French ground forces, played a major protect? And how do we measure success? The three ethnic groups have in effect been role in bringing about. And uneasiness be- Until now, the administration has been ex- separated by the revolting ethnic cleansing cause failure to fulfill the president’s prom- tremely vague (or perhaps merely confused) they have practiced. The so-called Croat- ise would almost certainly lead to the with- about its political objectives. This ambigu- Muslim federation is a fraud. No Muslim au- drawal of British and French forces, testing ity may have been helpful in encouraging the thorities are permitted in Bosnia’s Croatian yet another presidential promise: that U.S. cease-fire negotiations but when it comes to territory, and the currency remains Croat. troops will protect any allied withdrawal. determining what is to be safeguarded, ambi- Therefore, the first question to be settled is To send troops when there is ambiguity re- guity is dangerous and, in the end, self-de- what the peacekeeping force is supposed to garding the objectives, rules of engagement feating. protect—the dividing lines between ethnic or relationship of NATO to non-NATO forces Two schools of thought have dominated groups or the borders of a unified Bosnia? If such as Russia’s would be to stockpile dilem- the debate about America’s objectives. The it is the former, the political goal must be

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E 2028 CONGRESSIONAL RECORD — Extensions of Remarks October 25, 1995 partition; if the latter, we need to be pre- The deployment of troops to Bosnia is a for her lifelong career and dedication in the pared for an open-ended, brutal conflict. fateful decision requiring a full national de- service of the poor, the disenfranchised, Ironically, a continuation of the war in the bate that, in the nature of our system, must women, children, and the elderly. name of a unified Bosnia is likely to be most be led by the president. He must clarify disadvantageous to the original victims, the America’s political objectives—especially f Muslim community. For it is likely to result our view of the relationship of the three eth- TRIBUTE TO SARAH FABRY SMEJA in the partition of Bosnia between Serbia nic groups to each other—and explain the and Croatia. rules of engagement, the risks and the dura- Bosnia is not Haiti, where we can declare tion of our commitment. There must be pub- HON. DAVE CAMP victory while the country relapses into his- lic agreement with our allies about strate- OF MICHIGAN torical squalor under only slightly modified gies and rules of engagement. IN THE HOUSE OF REPRESENTATIVES oppression. In Bosnia, fudging the issue In addition, the Bosnian parties must spells continued conflict; the only outcome agree on dividing lines and undertake not to Wednesday, October 25, 1995 that has a slight chance of surviving a time change them by force. Mr. CAMP. Mr. Speaker, I rise today to limit is partition, and even that is unlikely And Congress must unambiguously endorse to be effective in the one-year period that so honor Sarah Fabry Smeja as she is recog- the program. nized for her vast contribution to polka and the many American experts believe will be im- The word of the president is a national posed by our electoral timetable. asset not to be trifled with; the cohesion of State of Michigan. Sarah Fabry Smeja was in- It will not do for the president to try to NATO remains a vital national interest. But ducted into the State of Michigan Polka Music propitiate media and congressional concerns we serve these causes only by devising un- Hall of Fame on Sunday, October 1, 1995. by assuring his interlocutors that American dertakings that can command consensus and America was built by the hard work and troops will not be put in harm’s way, as he be sustained over a period of time. commitment of settlers who brought with them has done in some recent comments. In Bosnia, troops are inherently in harm’s way. f a rich and varied heritage. Polka flourished in And if we insist that the front lines be Michigan largely due to the devotion of those manned primarily by allies, with little U.S. TRIBUTE TO ASSEMBLYWOMAN who brought with them their families' traditions participation, we will undermine the NATO CARMEN ARROYO and customs, as well as their love of polka. alliance. Sarah is just one of those special individuals What the American people, Congress, and ´ who is proud to keep an honored tradition the allies must hear is precisely what the HON. JOSE E. SERRANO risks are in Bosnia, why they must be run OF NEW YORK alive. and over what period of time. And we must IN THE HOUSE OF REPRESENTATIVES Sarah Fabry Smeja is Swartz Creek, MI, es- ask ourselves where we will be a year from pecially enjoys Czechoslovakian melodies first now, after casualties have been suffered and Wednesday, October 25, 1995 introduced to her by her father at a very early journalists and other observers report that Mr. SERRANO. Mr. Speaker, I rise today to age. Throughout her career she has played they can discern no moral distinction among pay tribute to Assemblywomen Carmen Ar- the piano, trumpet, and baritone. Sarah also the warring parties. royo, who was honored for her outstanding conducted a choir which consisted of 56 regu- No magic solutions are available to avoid the need for clarity and purpose. Defense service to the community on October 6, at the lar members. With some help in language ed- Secretary William Perry mentioned a time 1995 St. Benedict the Moor Neighborhood iting, Sarah research, composed, and typed limit of one year for American peacekeepers. Center's Dinner Dance, in the South Bronx. three song books which helped maintain the He has yet to explain what will have changed She is one of eight individuals who were singers club. Sarah and her husband, Al in one year and who will then take on the recognized for their remarkable success in Smeja, are now retired and reside in Plant burden if ethnic hatreds persist. The feasibil- helping rehabilitate individuals who had been City, FL. They are currently associated with ity of withdrawal depends on conditions on struggling with substance abuse. The rehabili- the St. Petersburg, C.S.A. and are members the ground that cannot possibly be predicted of the Czech-American Tourist Club. at this juncture. Nor will the use of Amer- tation program is being carried out at St. ican peacekeepers to arm and train the Benedict the Moor Neighborhood Center. Mr. Speaker, thanks to Sarah's efforts, we Bosnians change the problems described A native Puerto Rican who holds a Bachelor are all able to enjoy an old musical tradition here. of Arts from the College of New Rochelle, Ms. from many years ago. She was honored at a I favor abandoning the arms embargo, Arroyo overcame many economic difficulties reception in Owosso, MI, because of her dedi- which in any event does not seem to have in- during her youth. She had to fight in a world cation and commitment to spreading the polka hibited the Croats (and through them, the where women were mostly relegated to the tradition and helping others enjoy this special Muslims) from developing a significant mili- music. I am confident that the musical legacy tary capability. But no military aid pro- home. First, Ms. Arroyo was determined to be- gram, even backed by American instructors, come a bookkeeper, and studied to finish a of this outstanding individual will be remem- can change the demographic realities in course leading to secretarial-bookkeeper cer- bered for decades to come. which Serbs and Croats between them out- tification. f number the Muslims nearly 10 to one. Her studies were interrupted when she If we want an ethnically diverse, unitary moved to New York and started working at a WORK FORCE DEVELOPMENT Bosnia, we must be prepared to pay the price—which is not peacekeeping but the factory. Her seven children joined her a year support of one side in a civil war. At the after, but unable to find day care services for HON. LEE H. HAMILTON same time, if American peacekeepers are de- them, Ms. Arroyo was forced to rely on public OF INDIANA ployed for whatever purpose, care should be assistance. This experience moved Ms. Arroyo IN THE HOUSE OF REPRESENTATIVES taken to convey determination, Doubt and to help those who, like her, were struggling to Wednesday, October 25, 1995 hesitation will invite attacks to speed our improve their lives. She founded the South Mr. HAMILTON. Mr. Speaker, I would like to departure. Reducing the size of our troop Bronx Action Group, an organization dedicated contribution too much might also have the insert my Washington Report for Wednesday, to empower women, Latinos and blacks in the effect of limiting the risk to potential viola- October 25, 1995, into the CONGRESSIONAL community. Later, suitably empowered herself, tors. Adversaries must understand in ad- RECORD. vance that attacks on the peacekeeping she became president of the Puerto Rican INVESTING IN A SKILLED WORKFORCE force will not, as in Somalia, go unpunished. Women in Political Action Organization. Endurance becomes vitally important if In 1977, Ms. Arroyo became the executive As business technology has become more non-NATO, especially Russian troops join complex and the world economy more com- director of the South Bronx Community Cor- petitive, the strength of the American econ- the peacekeeping operation. Given Russia’s poration, an organization committed to aggres- historical ties to Serbia, a Russian role in omy increasingly depends on the skills and negotiations is desirable, and a Russian role sive urban development in the South Bronx. training of our workforce. A strong back and in peacekeeping could prove useful, provided As a Puerto Rican woman, she understood the patience to do the same task over and we are ready to maintain a symmetry of the need to advance the socioeconomic condi- over, day after day, is no longer enough to commitments. tion of Hispanic women. command a well-paid and secure job. Today’s Still, it would be ironic if Russian peace- Ms. Arroyo is the first Puerto Rican woman good jobs, including many factory jobs, re- keepers on the Serbian side and NATO peace- elected to the New York State Assembly and quire much more sophisticated skills. Some keepers on the Muslim side moved an East- skills are job-specific but many are more West confrontation line from the Elbe to the the first Puerto Rican woman appointed to the basic, such as good math, communication, Drina. And if we leave precipitately, we tilt New York State Medical Advisory Board. decisionmaking, and teamwork skills. Peo- the scales toward Serbia and enhance Mos- Mr. Speaker, I ask my colleagues to join me ple who develop these skills will be in high cow’s influence in the Balkans—all in the in honoring the Assemblywoman of New demand by employers as we move into the name of peacekeeping. York's 74th Assembly District, Carmen Arroyo, 21st century; people who don’t will not. October 25, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2029 SOUTHERN INDIANA the work around them, so they can contrib- using their experiences to steel their later ef- We have a good, hard-working labor force ute to solving problems. forts. It is an image that should inspire all of in southern Indiana, and employers under- But even more important, workers in us to do more because we have the oppor- southern Indiana will need to be proficient in stand that. But the changes that are taking tunity to blaze new trails, not just follow after place across the country are taking place the basic skills of reading, writing, and math. Mastering the skills for a specific job someone else. here too, and the education and skills re- Frontiers International began in 1936 as an quired for good jobs in the future will only can no longer guarantee a lifetime of secure increase. employment. Without these basic skills, the organization that was all black, looking to help As I travel around the Ninth District, I other skills will be of little value. The im- the black community. Over the years its mem- meet many people who would like to work portant thing is that the education system bership has expanded, its focus has retained but cannot find jobs. At the same time, in southern Indiana must produce people its core interest in the needs of the black com- many employers tell me they have openings who will be comfortable with a lifetime of munity, and expanded to include other matters learning. Workers will need to be able to for good-paying jobs but cannot find people of similar importance. with the right skills. We are seeing a grow- master new skills and adjust to new tech- nologies in an economy that will be charac- The creed of the club sets an ideal for all ing mismatch between the skills many peo- us: to be committed; to know the club's agen- ple have and the skills employers need. This terized by constant and unexpected change. is a double tragedy. People are frustrated by COMBINED EFFORTS da; to be prepared to change with changing their inability to find work, while firms are The task of better preparing our workers conditions; to never be satisfied that matters forced to put expansion plans on hold or to for these challenges falls on many of us. Par- are good enough; and that the key point of the go elsewhere to expand. That means the ents need to impress upon their young people organization is to help others who still need growth and development of southern Indiana the crucial importance of good education help. Every member is viewed as a potential will be hurt and so will our living standards. and work skills. Local schools are giving leader, and can count on being called to be a LOCAL ECONOMIC DEVELOPMENT more attention to linking academic training leader. Every member is expected to mean- with on-the-job work experience and tech- A few weeks ago, I held two roundtable dis- ingfully participate in planning club activities, nology training at local community colleges. cussions on the subject of economic develop- The State of Indiana has several programs to club expansion, and club success. ment in southern Indiana, one in Batesville help make the school-to-work transition The list of projects supported by the Sagi- and one in Corydon. Both featured represent- easier. The private sector has played a big naw Frontiers Club is most impressive. The atives from various sectors of the economy, role in training and retraining the United Negro College Fund, the Children's including local businesses (both large and workforce, especially in larger businesses. Christmas Party, the Vitiligo Foundation, Edu- small), economic development officials, uni- The federal government has a secondary, versity researchers, school officials, and cation Scholarship Sponsorship, First Ward though important, role. Congress is cur- farmers. Community Center, Opportunities industrializa- rently reforming federal job training ef- The participants raised many important is- tion Center of Metropolitan Saginaw, Saginaw forts—streamlining various programs and sues—including the quality of local infra- giving more flexibility to the states. At the County Senior Citizens' Picnic, Lake Huron structure, the burden of government regula- same time, House Speaker Gingrich has pro- Area Boy Scouts, Saginaw High School At- tions, tax abatements to attract industry, posed deep cuts in youth job training, tendance Lottery, Friendship Games, Trinity- the threat of competition from foreign pro- school-to-work transition programs, and vo- St. John Community Center, Edith Baillie ducers, and the high cost of medical insur- cational and adult education. Certainly we School Washington, DC, Field Trip, Saginaw ance. need to balance the federal budget, but mak- But I was particularly impressed by the Community Education Science Fair, the ing deep cuts in programs that would help fact that virtually everyone brought up the NAACP, Frontiers City-Wide Youth Tennis upgrade the work skills of our young people need to improve the quality of education and Tournaments, and the Ruben Daniels Edu- and brighten their economic future does not access to skill training in southern Indiana. make a lot of sense to me, especially at a cational Foundation are all projects that bene- This one topic dominated, and many con- time when Speaker Gingrich wants to pro- fitted from the wonderful, selfless activism of cerns were expressed. One participant dis- vide very expensive tax breaks to the Saginaw Frontiers and its members. cussed the difficulties many working parents wealthy. Mr. Speaker, I believe that one passage of face in contributing to their children’s early One of the best investments we can make the induction ceremony for new members says education. Others were concerned about the is in the skills of our workers. It means im- it all. Members ``are bound by duty, honor, and quality of secondary school education in proved quality of life, higher productivity parts of southern Indiana and insufficient gratitude.'' What a wonderful, simple and pro- and living standards, stronger economic vocative mandate. It is one which would serve higher education and vocational training fa- growth, better communities, and a brighter cilities. Many of the business representatives future for our young people. Helping to pro- all of us well to follow. At a time when we are indicated that the growth of their firms is vide a better trained workforce just makes expecting the Federal Government to do less, being restrained because trained, or even good sense. and for people to do more within their own trainable, workers cannot be found to fill the f communities, organizations like the Frontiers job openings. One participant said that he Club are vital and deserve to be heralded. I had not hired anyone from the local high THE FRONTIERSMAN: PIONEERS school in seven years. urge you, Mr. Speaker, and all of our col- Problems like these are not unique to FOR PROGRESS leagues to join me in thanking and congratu- southern Indiana. They are occurring all lating the leadership and membership of the around the country. Nationwide we hear of HON. JAMES A. BARCIA Frontiers Club for its efforts, and urge them to companies having to screen thousands of ap- OF MICHIGAN continue to lead by example. plicants to find only a few who are qualified, IN THE HOUSE OF REPRESENTATIVES f and of basic math and English tests being routinely failed by applicants. Employers Wednesday, October 25, 1995 WORLD POPULATION AWARENESS complain that many recently-hired workers Mr. BARCIA. Mr. Speaker, when any one of WEEK do not show up ready to work, lack the ca- us faces a problem, the right answer is to pacity to learn, and frequently quit after a few weeks. work toward a solution. The Frontiers Club HON. ELIZABETH FURSE has been an organization that has done just DEVELOPING A TOP QUALITY WORKFORCE OF OREGON thatÐwork toward a solutionÐfor many years. IN THE HOUSE OF REPRESENTATIVES But we cannot use the widespread nature This Saturday, at the 40th annual banquet for of this problem as an excuse for not tackling Wednesday, October 25, 1995 it vigorously here at home. It is clear that the Frontiers Club, we will again celebrate an- top priority needs to be given to developing other year's accomplishments as we prepare Ms. FURSE. Mr. Speaker, as of October a highly skilled and educated workforce in for yet another year of challenges. 1995 the world population is estimated to be southern Indiana. This is especially crucial The Frontiers Club lives on cooperation. It 5.7 billion with an annual growth of 88 million. to the future prospects of today’s young peo- brings together civic leaders, business lead- World population is an issue that the citizens ple, who will be working in an increasingly ers, education leaders, and a host of others of the United States and people all over the interconnected and competitive global econ- concerned about how to make lives in their world should be concerned with due to its omy. We need to focus our attention on the communities better. It is built on the ideals of wide spread environmental, social, economic, skills workers will need in the 21st century. They will need to know how to use comput- concentration of local resources on matters of and political impacts. ers to gather and process information. They local interest. The club parallels itself on the The people of Oregon recognize the need will need to develop good interpersonal skills early pioneers who forged ahead to make new for greater awareness of population levels and and be able to work in teams. They will need and vital discoveries with no convenient road their implications. Mr. Speaker, I am inserting to understand how their own work fits into maps, taking risks as they found them and this statement from Governor John Kitzhaber E 2030 CONGRESSIONAL RECORD — Extensions of Remarks October 25, 1995 of Oregon into the RECORD, proclaiming Octo- TRIBUTE TO SHARON A. JOSLYN Mr. Speaker, I ask my colleagues to join me ber 22 through October 29, 1995, World Popu- in recognizing Sharon A. Joslyn for her undy- lation Awareness Week. HON. JOSE´ E. SERRANO ing sense of commitment to our community, The proclamation follows: OF NEW YORK which has in turn embraced her efforts and IN THE HOUSE OF REPRESENTATIVES dedication. PROCLAMATION Wednesday, October 25, 1995 f OFFICE OF THE GOVERNOR, Mr. SERRANO. Mr. Speaker, I rise today to State of Oregon. JERUSALEM EMBASSY ACT OF 1995 pay tribute to Sharon A. Joslyn, who was hon- Whereas world population is currently 5.7 ored, on October 6 at the 1995 St. Benedict billion and increasing by nearly 100 million SPEECH OF per year, with virtually all of this growth The Moor Neighborhood Center's Dinner added to the poorest countries and regions— Dance for her great contributions to our com- HON. E. CLAY SHAW, JR. those that can least afford to accommodate munity. OF FLORIDA their current populations, much less such Ms. Joslyn is one of the eight individuals massive infusions of human numbers; and who were recognized for their remarkable suc- IN THE HOUSE OF REPRESENTATIVES cess in helping rehabilitate individuals who Whereas the annual increment to world Tuesday, October 24, 1995 had been struggling with substance abuse. population is projected to exceed 86 million through the year 2015, with three billion peo- The rehabilitation program is being imple- Mr. SHAW. Mr. Speaker, I rise today in ple—the equivalent of the entire world popu- mented at St. Benedict The Moor Neighbor- strong support of relocating the United States lation as recently as 1960—reaching their re- hood Center. Embassy in Israel to Jerusalem. For 3,000 productive years within the next generation; As a nurse and a member of the Inter- years Jerusalem has been the religious and and national Grail Women's Movement, Ms. Joslyn cultural capital of the Jewish people. Yet, Is- has worked in community health projects in Whereas the environmental and economic rael remains the only country in the world the United States and in Brazil. After her relo- impacts of this level of growth will almost where the United States does not maintain its certainly prevent inhabitants of poorer coun- cation to the South Bronx, she has continued Embassy in the capital city. On this day when tries from improving their quality of life, working as a nurse at the Dominican Sisters Jerusalem is celebrating its 3,000th anniver- and, at the same time, have deleterious re- Family Health Service on Alexander Avenue. sary, there is no better time than now to ac- percussions for the standard of living in Ms. Joslyn also served as an active member knowledge that Jerusalem is the recognized more affluent regions; and of the St. Ann's Development Corp., which capital of Israel by relocating our Embassy to branched out from St. Ann's Episcopal Whereas the 1994 International Conference there. on Population and Development in Cairo, Church. This is a matter of principle and priority to Along with other members of the corpora- Egypt crafted a 20-year Program of Action the Jewish people. Jerusalem is their seat of for achieving a more equitable balance be- tion, Ms. Joslyn had risked bodily harm by op- Government. Their Prime Minister and Par- tween the world’s population, environment erating an office and living in a building sched- liament are located there. We can show no and resources, that was duly approved by 180 uled for demolition, in order to save it and to greater respect for their Government than to nations, including the United States—Now preserve the office that services our commu- agree to move our Embassy to their capital. I therefore, I, John A. Kitzhaber, Governor of nity. urge my colleagues to continue to strongly Ms. Joslyn currently works at St. Luke's the State of Oregon, hereby proclaim Octo- support all efforts to follow through with this ber 22–29, 1995: ‘‘World Population Awareness Catholic Church where she is responsible for legislation. Week,’’ in Oregon and encourage all Oregoni- community programs and is the coordinator of ans to join in this observance. the U.S. Grail International Team. October 25, 1995 CONGRESSIONAL RECORD — Extensions of Remarks E 2031 SENATE COMMITTEE MEETINGS NOVEMBER 1 NOVEMBER 9 Title IV of Senate Resolution 4, 9:30 a.m. 2:00 p.m. agreed to by the Senate on February 4, Commerce, Science, and Transportation Energy and Natural Resources 1977, calls for establishment of a sys- To hold hearings on proposed legislation Parks, Historic Preservation and Recre- tem for a computerized schedule of all to reform the United States shipping ation Subcommittee meetings and hearings of Senate com- industry. To hold hearings on S. 231 and H.R. 562, SR–253 mittees, subcommittees, joint commit- bills to modify the boundaries of Wal- Environment and Public Works nut Canyon National Monument in the tees, and committees of conference. Clean Air, Wetlands, Private Property, and State of Arizona, S. 342, to establish This title requires all such committees Nuclear Safety Subcommittee the Cache La Poudre River National to notify the Office of the Senate Daily To resume hearings on S. 851, to amend Water Heritage Area in the State of Digest—designated by the Rules Com- the Federal Water Pollution Control Colorado, S. 364, to authorize the Sec- mittee—of the time, place, and purpose Act to reform the wetlands regulatory retary of the Interior to participate in of the meetings, when scheduled, and program. the operation of certain visitor facili- any cancellations or changes in the SD–406 ties associated with, but outside the meetings as they occur. Governmental Affairs boundaries of, Rocky Mountain Na- As an additional procedure along Permanent Subcommittee on Investiga- tional Park in the State of Colorado, S. with the computerization of this infor- tions 489, to authorize the Secretary of the mation, the Office of the Senate Daily To continue hearings to examine global Interior to enter into an appropriate Digest will prepare this information for proliferation of weapons of mass de- form of agreement with, the town of printing in the Extensions of Remarks struction. Grand Lake, Colorado, authorizing the SD–342 section of the CONGRESSIONAL RECORD town to maintain permanently a ceme- 10:00 a.m. tery in the Rocky Mountain National on Monday and Wednesday of each Judiciary week. Park, S. 608, to establish the New Bed- To continue hearings to examine changes ford Whaling National Historical Park Meetings scheduled for Thursday, Oc- in Federal law enforcement as a result tober 26, 1995, may be found in the in New Bedford, Massachusetts, and of the incident in Waco, Texas. H.R. 629, the Fall River Visitor Center Daily Digest of today’s RECORD. SD–106 Act. MEETINGS SCHEDULED SD–366 NOVEMBER 2 OCTOBER 31 9:30 a.m. NOVEMBER 14 Energy and Natural Resources 9:30 a.m. 10:00 a.m. Forests and Public Land Management Sub- Governmental Affairs Judiciary committee Permanent Subcommittee on Investiga- To hold hearings to examine the oper- tions To resume hearings to examine alter- ation of the Office of the Solicitor Gen- To hold hearings to examine global pro- natives to Federal forest land manage- eral. liferation of weapons of mass destruc- ment and to compare land management SD–226 tion. cost and benefits on Federal and State SD–342 lands. NOVEMBER 15 10:00 a.m. SD–366 10:00 a.m. Judiciary To hold hearings to examine changes in NOVEMBER 7 Judiciary Administrative Oversight and the Courts Federal law enforcement as a result of 10:00 a.m. Subcommittee the incident in Waco, Texas. Indian Affairs To hold hearings on S. 582, to amend SD–106 To hold hearings on S. 1159, to establish United States Code to provide that cer- Small Business an American Indian Policy Information tain voluntary disclosures of violations To hold joint hearings with the House Center. Committee on Small Business to exam- of Federal laws made pursuant to an SR–485 ine the cost of Federal regulations on environmental audit shall not be sub- small business. NOVEMBER 8 ject to discovery or admitted into evi- SD–G50 dence during a Federal judicial or ad- 2:00 p.m. 10:00 a.m. ministrative proceeding. Select on Intelligence Judiciary SD–226 To hold closed hearings on intelligence To hold hearings to examine mandatory matters. victim restitution. SH–219 SD–226 Wednesday, October 25, 1995 Daily Digest Senate Chamber Action Appointments: Advisory Commission on Intergovernmental Re- Routine Proceedings, pages S15595–S15705 lations: The Chair, on behalf of the Vice President, Measures Introduced: Three bills were introduced, pursuant to Public Law 86–380, appointed Senator as follows: S. 1361–1363. Page S15686 Thomas to the Advisory Commission on Intergov- Measures Reported: Reports were made as follows: ernmental Relations, vice Senator Dorgan. S. 1097, to designate the Federal building located Page S15705 at 1550 Dewey Avenue, Baker City, Oregon, as the Messages From the House: Pages S15685±86 ‘‘David J. Wheeler Federal Building’’. Measures Referred: Page S15686 Budget Reconciliation: Senate began consideration Statements on Introduced Bills: Pages S15686±87 of S. 1357, to provide for reconciliation pursuant to section 105 of the concurrent resolution on the Additional Cosponsors: Page S15687 budget for fiscal year 1996, with the following mo- Amendments Submitted: Pages S15687±99 tions/amendments pending thereto: Authority for Committees: Page S15699 Pages S15599±S15606, S15615±83 (1) Rockefeller motion to commit the bill to the Additional Statements: Pages S15699±S15704 Committee on Finance with instructions. Adjournment: Senate convened at 10 a.m., and ad- Pages S15616±51 journed at 11:58 p.m., until 9 a.m., on Thursday, (2) Brown Modified Amendment No. 2949 (to in- October 26, 1995. (For Senate’s program, see the re- structions of motion to commit), instructions that marks of the Acting Majority Leader in today’s the committee should consider the findings of the RECORD on page S15705.) trustees of the Federal Insurance Trust Fund. Pages S15631±51 Committee Meetings (3) Abraham Amendment No. 2950, to establish beneficiary incentive programs to collect information (Committees not listed did not meet) on fraud and abuse against the medicare program NOMINATIONS and to collect information on program efficiency. Pages S15651±75 Committee on Armed Services: Committee met in closed (4) Harkin Amendment No. 2957 (to Amend- session to consider pending military nominations, ment No. 2950), to strengthen efforts to combat but did not take final action thereon, and recessed subject to call. Medicare waste, fraud and abuse. Pages S15670±75 (5) Bradley motion to commit the bill to the RELIGIOUS LIBERTY Committee on Finance with instructions. Committee on the Judiciary: Committee concluded Pages S15676±83 hearings to examine the status of religious liberty in (6) Nickles/Brown Amendment No. 2958 (to the United States and whether there is a need for Bradley motion to commit the bill), to increase the further legal protection, after receiving testimony Earned Income Tax Credit for families. from Walter E. Dellinger, Assistant Attorney Gen- Pages S15681±83 eral, Office of Legal Counsel, Department of Justice; A unanimous-consent agreement was reached pro- Cathleen A. Cleaver, Family Research Council, viding for consideration of certain amendments/mo- David Saperstein, Religious Action Center of Reform tions to be proposed to the bill. Judaism, J. Brent Walker, Baptist Joint Committee, Pages S15682±83, S15705 Louis P. Sheldon, Traditional Values Coalition, and Senate will continue consideration of the bill on Kevin J. Hasson, The Becket Fund for Religious Thursday, October 26, 1995. Liberty, all of Washington, D.C. D 1250 October 25, 1995 CONGRESSIONAL RECORD — DAILY DIGEST D 1251

VETERANS HEALTH PROGRAMS Gorman, Disabled American Veterans, and Terry Committee on Veterans’ Affairs: Committee concluded Grandison, Paralyzed Veterans of America, all of hearings on proposed legislation to expand the VA’s Washington, D.C. authority to contract for health care services and to INTELLIGENCE—LAW ENFORCEMENT provide the agency with added flexibility to reorga- COOPERATION nize its field offices, S. 293, to authorize the pay- Select Committee on Intelligence: Committee concluded ment to States of per diem for veterans receiving hearings to review recommendations to improve the adult day health care, S. 403, to provide for the or- coordination and cooperation between the intel- ganization and administration of the Readjustment ligence and law enforcement communities, after re- Counseling Service, to improve eligibility for read- ceiving testimony from Jamie S. Gorelick, Deputy justment counseling and related counseling, S. 425, Attorney General, Department of Justice; and Jeff to require the establishment in the Department of Smith, Counsel, Central Intelligence Agency. Veterans Affairs of mental illness research, education, Also, committee met in closed session to receive and clinical centers, S. 548, to provide quality stand- a briefing on intelligence matters from officials of ards for mammograms performed by the Department the intelligence community. of Veterans Affairs, S. 612, to provide for a hospice care pilot program for the Department of Veterans WHITEWATER Affairs, and S. 644, to reauthorize the establishment Special Committee To Investigate Whitewater Development of research corporations in the Veterans Health Ad- Corporation and Related Matters: Committee met to ministration, after receiving testimony from Kenneth discuss the status of the hearings to examine issues W. Kizer, Under Secretary of Veterans Affairs for relating to the President’s involvement with the Health; and John Vitikacs, American Legion, James Whitewater Development Corporation. N. Magill, Veterans of Foreign Wars, David W. Committee will meet again tomorrow. h House of Representatives Calendar Wednesday: Agreed to dispense with Cal- Chamber Action endar Wednesday business of today. Page H10749 Bills Introduced: 9 public bills, H.R. 2528–2536, Transportation Appropriations: By a yea-and-nay and 2 private bills, H.R. 2537, H. Res. 244; and 2 vote of 393 yeas to 29 nays, Roll No. 735, the resolutions, H. Con. Res. 109–110 were introduced. House agreed to the conference report on H.R. Pages H10847±48 2002, making appropriations for the Department of Reports Filed: Reports were filed as follows: Transportation and related agencies for the fiscal year Conference report on H.R. 2020, making appro- ending September 30, 1996—clearing the measure priations for the Treasury Department, the United for Senate action. Pages H10755±73 States Postal Service, the Executive Office of the H. Res. 241, the rule which waived points of President, and certain Independent Agencies, for the order against the conference report, was agreed to fiscal year ending September 30, 1996 (H. Rept. earlier by a voice vote. Pages H10755±61 104–291); and Line Item Veto: By a yea-and-nay vote of 381 yeas H. Res. 245, providing for consideration of H. to 44 nays, the House agreed to the Deutsch motion Con. Res. 109, expressing the sense of the Congress to instruct House conferees in the conference on S. regarding the need for reform of the social security 4, to grant the power to the President to reduce au- earnings limit, and providing for further consider- ation of H.R. 2491, to provide for reconciliation thority, to insist upon the inclusion of provisions to pursuant to section 105 of the concurrent resolution require that the bill apply to the targeted tax benefit on the budget (H. Rept. 104–292). provisions of any revenue or reconciliation bill en- acted into law during or after fiscal year 1995. Pages H10813±28, H10846±47 Pages H10773±79 Speaker Pro Tempore: Read a letter from the Speaker wherein he designates Representative Barrett Privilege of the House: By a recorded vote of 236 of Nebraska to act as Speaker pro tempore for today. ayes to 189 noes, Roll No. 737, the House agreed Page H10749 to the Armey motion to table H. Res. 244, to direct D 1252 CONGRESSIONAL RECORD — DAILY DIGEST October 25, 1995 the Speaker to provide an appropriate remedy in re- to extend the deadline under the Federal Power Act sponse to the use of a forged document at a sub- applicable to the construction of a hydroelectric committee hearing. Pages H10779±81 project in the State of Ohio; H.R. 1014, amended, Budget Reconciliation: Pursuant to the order of to authorize extension of time limitation for a Tuesday, October 24, the House completed three FERC-issued hydroelectric license; H.R. 1051, to hours of general debate on H.R. 2491, to provide for provide for the extension of certain hydroelectric reconciliation pursuant to section 105 of the concur- projects located in the State of West Virginia; H.R. rent resolution on the budget for fiscal year 1996; 1290, amended, to reinstate the permit for, and ex- but came to no resolution thereon. Further consider- tend the deadline under the Federal Power Act ap- ation will continue on Thursday, October 26, under plicable to the construction of, a hydroelectric a rule. Pages H10781±H10810 project in Oregon; H.R. 1335, to provide for the ex- tension of a hydroelectric project located in the State Recess: House recessed at 9:54 p.m. and reconvened of West Virginia; H.R. 1366, to authorize the ex- at 1 a.m. on Thursday, October 26. Page H10846 tension of time limitation for the FERC-issued hy- Senate Messages: Messages received from the Senate droelectric license for the Mt. Hope waterpower today appear on page H10749. project; and H.R. 1835, to extend the deadline Quorum Calls—Votes: Two yea-and-nay votes and under the Federal Power Act applicable to the con- one recorded vote developed during the proceedings struction of a hydroelectric project in Oregon. of the House today and appear on pages FAIR LABOR STANDARDS ACT H10772–73, H10779, and H10780–81. There were Committee on Economic and Educational Opportunities: no quorum calls. Subcommittee on Workforce Protections held an Adjournment: Met at 11 a.m. and adjourned at oversight hearing on the Fair Labor Standards Act of 1:03 a.m. on Thursday, October 26. 1938. Testimony was heard from Representatives Knollenberg and Bateman; and public witnesses. Committee Meetings CIVIL SERVICE REFORM RURAL DEVELOPMENT REFORMS AND Committee on Government Reform and Oversight: Sub- AGRICULTURE RELIEF AND TRADE ACT committee on Civil Service concluded hearings on Committee on Agriculture: Subcommittee on Resource Civil Service Reform I: NPR and the Case for Re- Conservation, Research, and Forestry held a hearing form. Testimony was heard from public witnesses. to consider rural development reforms and the Agri- OVERSIGHT—CENSUS BUREAU cultural Relief and Trade Act of 1995. Testimony was heard from Jill Long Thompson, Under Sec- Committee on Government Reform and Oversight: Sub- retary, Rural Economic and Community Develop- committee on National Security, International Af- ment Service, USDA; and public witnesses. fairs, and Criminal Justice held an oversight hearing on Census Bureau: Preparations for the 2000 Census. MARKETS AND TRADING Testimony was heard from the following officials of REORGANIZATION, AND REFORM ACT the Department of Commerce: Francis D. DeGeorge, Committee on Banking and Financial Services: Sub- Inspector General; and Martha Farnsworth Riche, committee on Capital Markets, Securities and Gov- Director, Bureau of the Census; and L. Nye Stevens, ernment Sponsored Enterprises continued hearings Director, Planning and Reporting, General Govern- on H.R. 718, Markets and Trading Reorganization ment Division, GAO. and Reform Act. Testimony was heard from the fol- FEDERAL ELECTION CAMPAIGN ACT lowing officials of the Financial Institutions and AMENDMENTS; ANDERSON v. ROSE; Market Issues Division, GAO: Jim Bothwell, Direc- COMMITTEE BUSINESS tor; Helen Hsing, Associate Director; Michael Bur- nett, Assistant Director; and Frank J. Philippi, Eval- Committee on House Oversight: Ordered reported H.R. uator. 2527, to amend the Federal Election Campaign Act of 1971 to improve the electoral process by permit- HYDROELECTRIC PROJECTS ting electronic filing and preservation of Federal Committee on Commerce: Ordered reported the follow- Election Commission reports. ing bills: H.R. 657, to extend the deadline under The Committee approved a motion to dismiss the the Federal Power Act applicable to the construction election contest in the 7th District of North Caro- of three hydroelectric projects in the State of Arkan- lina, Anderson versus Rose. sas; H.R. 680, to extend the time for construction The Committee also approved other pending com- of certain FERC licensed hydro projects; H.R. 1011, mittee business. October 25, 1995 CONGRESSIONAL RECORD — DAILY DIGEST D 1253

UNITED STATES-JAPAN RELATIONS Land Exchange Act of 1995; H.R. 1163, amended, Committee on International Relations: Subcommittee on to authorize the exchange of National Park Service Asia and the Pacific held a hearing on United States- land in the Fire Island National Seashore in the State Japan Relations and American Interests in Asia: of New York for land in the Village of Patchogue; Striking a New Balance. Testimony was heard from H.R. 1585, Modoc National Forest Boundary Ad- Winston Lord, Assistant Secretary, East Asian and justment Act; and H.R. 2437, to provide for the ex- Pacific Affairs, Department of State; Joseph S. Nye, change of certain lands in Gilpin County, CO. Assistant Secretary, International Security Affairs, SOCIAL SECURITY EARNINGS TEST Department of Defense; and public witnesses. REFORM SEVEN-YEAR BALANCED BUDGET TRADE ISSUES REGARDING CHILE RECONCILIATION ACT Committee on International Relations: Subcommittee on Committee on Rules: Granted, by a vote of 9 to 4, a International Economic Policy and Trade and the rule providing for twenty minutes of debate in the Subcommittee on Western Hemisphere Affairs held House of H. Con. Res. 109, Social Security earnings a joint hearing on Trade Issues Regarding Chile and test reform. The rule provides three hours of addi- other Latin American Countries in Light of the tional general debate on H.R. 2491, Seven-Year Bal- NAFTA Experience. Testimony was heard from Rep- anced Budget Reconciliation Act of 1995. The rule resentatives Kolbe, Kaptur, Hunter and Dunn; Ira provides that an amendment in the nature of a sub- Shapiro, Special Negotiator for Japan and Canada, stitute consisting of the text of H.R. 2517 modified Office of the U.S. Trade Representative; Alexander by the amendments printed in the report of the F. Watson, Assistant Secretary, Inter-American Af- Committee on Rules on the rule shall be considered fairs, Department of State; William E. Barreda, Dep- as adopted in the House and in the Committee of uty Assistant Secretary, Trade and International Pol- the Whole; that the bill as amended shall be consid- icy, Department of the Treasury; and public wit- ered as an original bill for the purpose of further nesses. amendment and that all points of order against pro- NEW GATT PATENT ACCORD IMPACT visions of the bill as amended are waived. No amendment shall be in order to the bill as amended Committee on International Relations: Subcommittee on except an amendment in the nature of a substitute International Economic Policy and Trade held a consisting of the text of H.R. 2530, which may only hearing on the Impact on U.S. Exporters of the New be offered by the Minority Leader or his designee. GATT Patent Accord. Testimony was heard from The amendment in the nature of a substitute shall Bruce A. Lehman, Commissioner, Patent and Trade- be considered as read, shall not be subject to amend- marks, Department of Commerce; and a public wit- ment, and shall be debatable for one hour equally di- ness. vided and controlled by the proponent and an oppo- RACE AND GENDER PREFERENCE nent. All points of order against the amendment in PROGRAMS the nature of a substitute are waived. The rule pro- Committee on the Judiciary: Subcommittee on the Con- vides that after a motion to rise has been rejected on stitution held a hearing regarding the Economic and any day, another such motion may only be offered Social Impact of Race and Gender Preference Pro- by the Minority Leader or the Budget Committee grams. Testimony was heard from public witnesses. chairman. The rule provides one motion to recommit which, if containing instructions, may only be of- MISCELLANEOUS MEASURES fered by the Minority Leader or a designee. The rule Committee on Resources: Ordered reported the following provides that the yeas and nays are ordered on final bills: H.R. 826, to extend the deadline for the com- passage and that the provisions of clause 5(c) of Rule pletion of certain land exchanges involving the Big XXI (requiring a three-fifths vote on any amend- Thicket National Preserve in Texas; H.R. 924, to ment or measure containing a Federal income tax prohibit the Secretary of Agriculture from transfer- rate increase) shall not apply to the votes on the bill, ring any National Forest System lands in the Ange- amendments thereto or conference reports thereon. les National Forest in California out of Federal own- Testimony was heard from Chairman Kasich and ership for use as a solid waste landfill; H.R. 1838, Representatives Miller of Florida, Roberts, Ney, Fox, to provide for an exchange of lands with the Water Cremeans, Klug, Horn, Davis, Rohrabacher, Salmon, Conservancy District of Washington County, UT; Young of Alaska, Hancock, Bunn of Oregon, Sabo, H.R. 1581, to require the Secretary of Agriculture Stenholm, Mollohan, Costello, Orton, Pomeroy, to convey certain lands under the jurisdiction of the Meek of Florida, de la Garza, Johnson of South Da- Department of Agriculture to the city of Sumpter, kota, Peterson of Minnesota, Dooley, Thurman, OR; H.R. 207, amended, Cleveland National Forest Hinchey, Waxman, Markey, Wyden, Richardson, D 1254 CONGRESSIONAL RECORD — DAILY DIGEST October 25, 1995 Pallone, Deutsch, Gene Green of Texas, and Collins ergy and water development for the fiscal year end- of Illinois. ing September 30, 1996. NATIONAL TECHNOLOGY TRANSFER AND APPROPRIATIONS—TREASURY/POSTAL ADVANCEMENT ACT; COMMITTEE SERVICE BUSINESS Conferees agreed to file a conference report in dis- Committee on Science: Ordered reported amended H.R. agreement on the differences between the Senate- 2196, National Technology Transfer and Advance- and House-passed versions of H.R. 2020, making ment Act of 1995. appropriations for the Treasury Department, the The Committee also met to consider Committee United States Postal Service, the Executive Office of business. the President, and certain Independent Agencies for the fiscal year ending September 30, 1996. SMALL BUSINESS—REGULATORY AND PAPERWORK BURDENS TELECOMMUNICATIONS REFORM Committee on Small Business: Held an oversight hear- Conferees met to resolve the differences between the ing on ‘‘IRS Initiatives to Reduce Regulatory and Senate- and House-passed versions of S. 652, to pro- Paperwork Burdens on Small Business.’’ Testimony vide for a pro-competitive, de-regulatory national was heard from Margaret Milner Richardson, Com- policy framework designed to accelerate rapidly pri- missioner, IRS, Department of the Treasury; and vate sector deployment of advanced telecommuni- public witnesses. cations and information technologies and services to all Americans by opening all telecommunications COMMITTEE BUSINESS markets to competition, but did not complete action Committee on Standards of Official Conduct: Met in ex- thereon, and recessed subject to call. ecutive session to consider pending business. f OVERSIGHT—TRUMAN VA MEDICAL COMMITTEE MEETINGS FOR THURSDAY, CENTER OCTOBER 26, 1995 Committee on Veterans’ Affairs: Subcommittee on Hos- (Committee meetings are open unless otherwise indicated) pitals and Health Care held an oversight hearing concerning management issues at the Harry S Tru- Senate man VA Medical Center in Columbia, Missouri. Tes- Committee on Banking, Housing, and Urban Affairs, busi- timony was heard from the following officials of the ness meeting, to mark up S. 1260, to reform and consoli- Department of Veterans Affairs: Gordon D. date the public and assisted housing programs of the Christensen, M.D., Associate Chief of Staff, Research United States, and to redirect primary responsibility for and Development and John T. Carson, Director, these programs from the Federal Government to States both with the Harry S Truman Medical Center; Wil- and localities, and to consider pending nominations, 10 liam T. Merriman, Deputy Inspector General; Jack a.m., SH–216. Committee on Energy and Natural Resources, Subcommittee H. Kroll, Assistant Inspector General, Departmental on Forests and Public Land Management, to hold hear- Reviews and Management Support; Thomas L. ings to examine alternatives to Federal forest land man- Garthwaite, M.D., Deputy Under Secretary, Health, agement and to compare land management cost and bene- Veterans Health Administration; and Robert E. Coy, fits on Federal and State lands, 9 a.m., SD–366. Deputy General Counsel. Committee on the Judiciary, business meeting, to consider pending calendar business, 10 a.m., SD–226. Committee on Indian Affairs, to hold hearings on S. Joint Meetings 1341, to provide for the transfer of certain lands to the APPROPRIATIONS—FOREIGN OPERATIONS Salt River Pima-Maricopa Indian Community and the Conferees agreed to file a conference report on the dif- city of Scottsdale, Arizona, 9:30 a.m., SR–485. Special Committee on Aging, to hold hearings to examine ferences between the Senate- and House-passed ver- the quality of care in nursing homes, 9:30 a.m., SD–628. sions of H.R. 1868, making appropriations for for- Special Committee To Investigate Whitewater Development eign operations, export financing, and related pro- Corporation and Related Matters, to meet to discuss the sta- grams for the fiscal year ending September 30, 1996. tus of hearings on issues relating to the President’s in- APPROPRIATIONS—ENERGY AND WATER volvement with the Whitewater Development Corpora- DEVELOPMENT tion, 9:30 a.m., SH–216. Conferees agreed to file a conference report on the dif- NOTICE ferences between the Senate- and House-passed ver- For a listing of Senate Committee Meetings sched- sions of H.R. 1905, making appropriations for en- uled ahead, see page E2031 in today’s RECORD. October 25, 1995 CONGRESSIONAL RECORD — DAILY DIGEST D 1255 House Subcommittee on Courts and Intellectual Property, hearing on H.R. 2235, Prior Domestic Commercial Use Committee on Appropriations, to continue markup of a Act of 1995, 10 a.m., 2141 Rayburn. measure making appropriations for the government of the Subcommittee on Crime, hearing regarding meth- District of Columbia and other activities chargeable in amphetamine, 9:30 a.m., 2237 Rayburn. whole or in part against the revenues of said district for Committee on Resources, Subcommittee on National the fiscal year ending September 30, 1996, 9 a.m., 2360 Parks, Forests and Lands, hearing on the following bills: Rayburn. H.R. 2067, to facilitate improved management of Na- Committee on Commerce, Subcommittee on Commerce, tional Park Service Lands; H.R. 2025, Park Renewal Trade, and Hazardous Materials, to continue hearings on Fund Act; H.R. 2465, National Park Service the Reform of Superfund Act of 1995, 10 a.m., 2123 Professionalization Act; and H.R. 2464, to amend Public Rayburn. Law 103–93 to provide additional lands within the State Subcommittee on Energy and Power, hearing on H.R. of Utah for the Goshute Indian Reservation, 9 a.m., 1324 1514, Propane Education and Research Act of 1995, 10 Longworth. a.m., 2322 Rayburn. Committee on Standards of Official Conduct, executive, to Committee on Government Reform and Oversight, Sub- consider pending business, 1 p.m., HT–2M Capitol. committee on Civil Service, hearing on Civil Service Re- Committee on Transportation and Infrastructure, Sub- form 11: Performance and Accountability, 9 a.m., 2154 committee on Aviation, to markup the Federal Aviation Rayburn. Administration Revitalization Act of 1995, 9:30 a.m., Committee on International Relations, Subcommittee on 2167 Rayburn. International Operations and Human Rights, hearing on Subcommittee on Public Buildings and Economic De- the United Nations: Management, Finance, and Reform, velopment, hearing on the sale of 502 First Street, S.E., 10 a.m., 2172 Rayburn. 1:30 p.m., 2247 Rayburn. Committee on the Judiciary, Subcommittee on the Con- Committee on Ways and Means, hearing on H.R. 2494, stitution, hearing on H.R. 1946, Parental Rights and Re- Thrift Charter Conservation Tax Act of 1995, 9 a.m., sponsibilities Act of 1995, 10 a.m., B352 Rayburn. 1100 Longworth. D 1256 CONGRESSIONAL RECORD — DAILY DIGEST October 25, 1995

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9 a.m., Thursday, October 26 9 a.m., Thursday, October 26

Senate Chamber House Chamber Program for Thursday: Senate will continue consider- Program for Thursday: Consideration of H. Con. Res. ation of S. 1357, Budget Reconciliation. 109, Social Security Earnings Test Reform (rule providing for 20 minutes of debate in the House); and Continue consideration of H.R. 2491, Seven-Year Bal- anced Budget Reconciliation Act of 1995 (modified rule, 3 hours of additional general debate).

Extensions of Remarks, as inserted in this issue

HOUSE

Barcia, James A., Mich., E2029 Camp, Dave, Mich., E2028 Furse, Elizabeth, Ore., E2029 Hamilton, Lee H., Ind., E2028 Lantos, Tom, Calif., E2027 Serrano, Jose´ E., N.Y., E2028, E2030 Shaw, E. Clay, Jr., Fla., E2030

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