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, FRIDAY, NOVEMBER 17, 1995 No. 183 Senate (Legislative day of Thursday, November 16, 1995)

THE 7-YEAR BALANCED BUDGET Mr. CHAFEE. Mr. President, first I As a Senator, as a parent, as a grand- RECONCILIATION ACT OF 1995 want to say I listened to the Members parent and as a concerned citizen, Mr. (Continued) of the Democratic side speak this President, I have come to believe, as I afternoon and, with the exception of mentioned before, that the deficit is Mr. ABRAHAM. Mr. President, I the Senator from Nebraska, I have not the most pressing domestic problem yield myself such time as I may heard one of them step up to the plate our Nation faces. We cannot continue consume. on this reckless course of spending Mr. President, I say very briefly and try to do something about the defi- more than we take in. Individuals and there is once again information on the cits the country is facing. families, obviously, have to live within floor that must be corrected: the argu- Yes, they attack everything we have their budgets. So should our national ment that the tax cuts included in the done, every proposal we have, but they Government. Balanced Budget Act of 1995 are going have not offered a single proposal of their own to address what I believe is Now, the Federal deficit is literally to the very wealthy in our country. In snowballing downhill, totally out of fact, Mr. President, 65 percent of all the most serious domestic problem fac- ing this Nation of ours, which is the control. In 1980, we had a national debt the tax cuts that are being provided for of $1 trillion. This amount was amassed in this legislation go to people who are continuing deficits. True, there is a lot of mileage in over a period of 200 years, from the in- making less than $75,000 a year, 80 per- ception of the Republic. Yet from 1980 cent goes to people making less than being against it and they are experts at it. The word ‘‘shame’’ was used by the to the present—just 15 years, we have $100,000. run up $4 trillion more—four times If you are in those categories, accord- Senator from Massachusetts about the approach we have taken. I say shame what it took us 200 years to accumu- ing to what we have just heard, you are late. So now our national debt has rich. In my State of Michigan, people to those on that side who criticize but offer no alternatives. reached almost $5 trillion. making less than $75,000 a year are not Absent decisive action, we are look- With few exceptions, there is little the wealthiest people in America, and I ing at annual deficits continuing out willingness on that side of the aisle to do not think they are the wealthiest into the future of $200 billion a year. In tangle with this desperate problem people in America or any other State. other words, every 5 years we will add that our country faces. The other claim, Mr. President, with another $1 trillion of debt to the bill we Mr. President, I believe that we truly respect to children, I think it is hard to are sending to future generations of argue that the policies which we are do face a historic choice: to put our Na- Americans to pay. changing with this legislation are tion on a path to a balanced budget by Interest alone, never mind paying going to be worse for children than passing this Balanced Budget Act, or to down that principal, is the third larg- what we have seen under the policies continue business as usual, borrowing est expenditure in the Federal budget. that have been in existence for so from our children and grandchildren to The largest is Social Security, the sec- many years. meet current Federal obligations. ond largest is defense, the third largest Today, more children and more peo- This is the first time, Mr. President, is interest on the debt. ple are in poverty than when the war in my 19 years in the Senate that we Mr. President, $235 billion a year. on poverty began. Today, children in have had the opportunity to vote on a That is nearly a quarter of a trillion America born this year are faced with balanced budget. Yes, we have made at- dollars that will not be available for huge debts that we have been running tempts in the past to reduce the defi- better education, better schools, more up on the Federal Government’s unlim- cit. We had the Gramm-Rudman plan, help to college students, disease pre- ited credit card. There can be no great- firewalls, all kinds of approaches, but vention, improved health, better hous- er punishment for the children in never have we had the political courage ing, and more environmental protec- America today than to let the spending in both branches to make the tough tion. This staggering debt burden pre- spree in Washington continue. That choices to produce a balanced budget. vents us from making those expendi- will continue if we do not pass the Bal- Whether one agrees with this legisla- tures, and obviously the $235 billion anced Budget Act which we are dealing tion or not, it clearly represents a bold this year will go up every year. with right now. and a decisive step. Those courageous Thus, I am committed to reaching a I yield 11 minutes to the Senator enough to vote for it deserve kudos, balanced budget within a specified from Rhode Island, of the 15 we have particularly in the House of Represent- time period, and the Balanced Budget allotted, and then 5 minutes to the atives, where they face the voters Act will accomplish that objective Senator from Alaska. every 2 years. within 7 years, by the year 2002.

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

S 17247 S 17248 CONGRESSIONAL RECORD — SENATE November 17, 1995 Whether one agrees with all of the At a time when we are trying to bal- question the wisdom of trying to find provisions of this or not, there is an- ance the budget, I believe tax cuts are such a high level of savings from Med- other very important reason to vote for difficult to justify. I, personally, am icaid. the Balanced Budget Act. It will get us against any the tax cuts. However, if Next, the Senate welfare reform bill beyond the current budget impasse and we are to have some tax reductions, was a sound package which won signifi- on to direct negotiations with the they should not become effective until cant bipartisan support, and I hope the President. substantial progress has been made to- result which emerges from negotia- As far as I am concerned, the sooner ward reaching our goal of a balanced tions—— we get to the negotiating table with budget by the year 2002. The PRESIDING OFFICER. The 11 the administration, the better. We need Both sides have proposed tax cuts. minutes of the Senator have expired. to get beyond the finger pointing and The administration rails against our Mr. CHAFEE. If I might have 1 more on to negotiations. We must get past tax cut proposal but, indeed, the Presi- minute? this veto—which everyone agrees is dent has also proposed tax cuts total- Mr. ABRAHAM. I yield the Senator going to take place—and on to con- ing more than $100 billion. I believe an additional minute. structive, bipartisan dialog with the both sides should defer the implemen- Mr. CHAFEE. I hope the result which White House, and congressional Demo- tation of any tax cuts. emerges from negotiations on the wel- crats, to balance this Federal budget Second, congressional Republicans fare part of the Balanced Budget Act within 7 years. are exactly right in taking significant will be closer to the Senate bill. The Now, a new forecast was conducted at steps to control the future growth of conference agreement appears to de- the University of Rhode Island indicat- Medicare. The long-term financial part significantly from the Senate bill ing that my State is still languishing problems facing this program must be in areas such as foster care and chil- in the doldrums of a protracted reces- addressed in a forthright manner. The dren’s Supplemental Security Income, sion. At best, the recovery we have ex- President and congressional Democrats for example. In addition, it is unrea- perienced over the past several years must step up to the plate on this issue. sonably restrictive with respect to the has been uneven and anemic. This con- By the way, I hope everybody saw the treatment of legal immigrants, which I tinued stagnation is sapping the vital- editorial in yesterday’s Washington find quite troubling and unacceptable. ity of my State and dashing the hopes Post, hardly a mouthpiece for the Re- We should bite the bullet and correct of many of its citizens. publican Party, which excoriated the the Consumer Price Index, which is a We need to get this entire economy Democrats for their failure to face up measure of inflation used to compute moving—from one end of the country to this issue of Medicare. The Presi- cost-of-living adjustments for Social to the other—and balancing the budget dent and the congressional Democrats Security benefits, as well as to conform is the single most important step we are equally to blame for failing to offer Federal tax brackets with inflationary can take to make this country prosper. real solutions to the problems con- changes. There is growing bipartisan This is not me saying this. This is the fronting the Medicare program. We Re- consensus within Congress, and among Chairman of the Federal Reserve, Dr. publicans believe in income-testing, re- economists, that the CPI overstates in- Alan Greenspan, and a host of econo- quiring wealthier citizens to pay more flation. Even a modest correction of mists that testified before the Finance for Medicare, as well as other entitle- five-tenths of 1 percent would reduce Committee earlier this year. ment programs. In addition, steps must outlays by about $122 billion over 7 The very action of enacting legisla- be taken to conform Medicare adminis- years, affecting only a $4 or $5 reduc- tion to put us on the path to a balanced tration and management with modern tion in the increase the average bene- budget, with annual deficits on a down- insurance practices. Moreover, we ficiary would receive. ward trend, would provide an almost should give seniors more choices, such The approaches I have outlined will immediate reduction in short and long- as choosing an HMO, or Preferred Pro- help the respective parties reach an term interest rates. This, in turn, vider Organization. I strongly believe agreement to balance the budget by would do several things. It would free we should not reduce Part B premiums providing the flexibility needed to re- up capital to fuel growth, increase de- because doing so would require addi- duce the reliance on savings from Med- mand for goods and services, and in- tional tax dollars, further increasing icaid and other programs serving the crease employment in our country. the deficit of our Nation. In this re- needy, particularly those serving poor For consumers, the cost of financing gard, the Republican budget plan keeps children. a college education for their children, the premiums at exactly the same per- Mr. President, in conclusion, this leg- buying an automobile, or financing a centage that they are today, 31.5 per- islation presents us with a tremendous home, would all come down in response cent. opportunity to fulfill our responsibil- to falling interest rates. For busi- Republicans are right in insisting ities to put our fiscal house in order. I nesses, the cost of borrowing capital upon a fixed timetable of 7 years to urge passage of this legislation so that would become more affordable, ena- reach a balanced budget. We have re- we can move on to direct negotiations bling them to expand, and to create peatedly promised fiscal discipline and with the White House toward a final new jobs. repeatedly failed to deliver it. So, when budget agreement. I thank the Chair Now, Mr. President, I do not agree people suggest, oh, you can do it in 9 and the manager. with every aspect of this massive bill. years, in 10 years, or 15 years—beware. Mr. ABRAHAM. Mr. President, I I say without hesitation or regret that Let us set an early date. I believe 7 yield 5 minutes to the Senator from I fought the good fight on a number of years is a reasonable one. That is not Alaska. issues about which I care deeply, with tomorrow, that is not the year after The PRESIDING OFFICER. The Sen- some success and some failures. next. Within 7 years—by 2002—we ator from Alaska. However, when the goal is as impor- ought to be able to deliver a balanced Mr. STEVENS. Mr. President, I do tant as securing the economic future of budget. We are in peacetime. There is support this Balanced Budget Act of our Nation, as I believe it is, one works no war. There is relative prosperity. 1995. I want to make a few comments to advance the process despite any mis- We ought to be able to balance the about the continuing resolution that is givings one might have. budget in 7 years. going to go to the President and its re- That said, I would like to offer a few Severing the individual entitlement lationship to this bill. of my own thoughts to those who will and turning the Medicaid program over I was deeply disturbed when the have the difficult task of negotiating a to the States as a block grant causes President vetoed the second continuing final agreement with the administra- me grave concerns, and could end up resolution. This will be the third one, tion once this bill is vetoed. When the costing our health care system a lot because, you know, we did have one negotiations convene in early Decem- more than the present program. A per from October 1 to November 13. I do ber, I am confident an agreement can capita cap on the Federal entitlement hope the messages are getting through be reached if both sides come to the and much greater State flexibility are to the President. I have been heartened table in good faith. the appropriate solutions to the prob- every morning when I come into the of- Here are my suggestions for them. lems confronting this program. I also fice and review the logging-in of the November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17249 public opinion messages that come to sional Budget Office, not the political plain to my colleagues some of what is my Alaska offices and here in Washing- appointees of the Office of Management in this bill. I think some of what I will ton. I want to tell the Senate, of all the and Budget, to determine whether the explain is not understood by anybody calls we have received during this pe- bills that Congress sends him would in the Senate. It is just there. riod, about 15 percent of those calls meet the goals of balancing the budget. We are told now that this bill is agree with the President; 4 percent I think that we need to have this bill going to balance the budget, this plan rightly urge us to get together and set- which is before us passed. There is no must be adopted, this plan or no plan, tle this problem; but over 80 percent of question about that. But I say to the this is the plan that will save America, all the calls we received so far tell me President, I urge you to sign the con- and this is the plan that will solve the to stay the course and balance the tinuing resolution. We are seeing the fiscal policy problems. Well, there are budget. They tell me to continue this collision between the two massive enti- other ways to do the same thing and to fight that we have, to try to bring ties of our Federal Government—the do it the right way. So let me go about some restoration of, really, the executive branch and the legislative through some of the things that I think fiscal solvency of the country and to branch—one under the control of one can be changed and must be changed in realign our laws so they make sense. and the other under the control of the this plan. Alaskans, really, who have sent us other, and there is no way for them to If you go through this plan in some here, tell us a balanced budget is worth get together unless we have some time. detail, what you will see is the choices fighting for. It is time we dealt with This continuing resolution would give that are made on spending cuts and the this issue. I just managed the defense us that time and keep the commitment choices that are made on tax cuts seem bill. Most people realize how large that not only to balanced budget by 2002, always to be overweighed in terms of defense bill is, and we were criticized but to do so using sensible economics helping those who have money with ad- on reporting it because it was so large. as delineated by the Congressional ditional blessings of tax cuts and hurt- I wonder how many people realize Budget Office. ing those who do not have much with that the interest on the national debt I thank the Chair. the added burdens of budget cuts. this year is the same as the amount of Mr. DORGAN addressed the Chair. Let me show my colleagues some- money we are spending for national de- The PRESIDING OFFICER. The Sen- thing that I will bet no one in the Sen- fense. The difficulty is, the debt is ris- ator from North Dakota. ate understands is there. In fact, let me ing now at an astounding rate of Mr. DORGAN. Mr. President, under a do it by talking about cows, if the Sen- $335,000 a minute, $20 million an hour, previous agreement I am allowed 15 ate will permit me to do that. $482 million a day. We have a deficit al- minutes, as I understand it. Section 1240, chapter 4, ‘‘livestock ready standing at $176 billion, and it is Mr. President, let me begin doing and environmental assistance,’’ which projected to remain roughly at that what someone recently alleged on the is a fancy way of saying—it is called level through the end of the century— other side of the aisle that no one has LEA, ‘‘livestock and environmental as- almost $200 billion a year through the done. sistance.’’ It includes something called end of the century. Let me compliment the Republicans ‘‘manure management.’’ I will bet not Alaskans realize we cannot use the of the majority party. I think some of many can visit with me about this. Federal credit card to get out of this what they have done in this reconcili- You do not know it is in there—LEA, debt. We have to find some way to ation bill makes a lot of sense. Some of manure management. meet it. We also have to find some way the proposals are courageous proposals. Who gets the money under manure to provide the services that we need. Some of them move us in the right di- management? If you have up to 10,000 It will be the small States that are rection. beef cows, or a big herd, you are eligi- squeezed out if these interest payments I am not going to support this bill. I ble for $50,000 in manure management. continue to rise, and we know that. We think there are some terrible ideas in But what if you have a small herd? rely on things like the Coast Guard and here as well. But let me say all of us Not beef cows, but dairy cows. If you the FBI and FAA and so many groups have to work together to find common have a small herd of dairy cows, and that are involved in our livelihood, the ground. Some of the proposals make a you have more than 55, you are eligible fisheries and forestry programs of lot of sense. There are a good number for zero. Big herd of cows, you get NOAA. All of that is discretionary of the proposals that I do support. $50,000 for manure management. But a spending that is wiped out as interest Mr. President, the debate is not cow with spots, 56 of them, zero. rates go up. The reason we are commit- about whether we balance the budget Look, this is a cow that wakes up at ted to reducing this deficit and trying in 7 years. Frankly, if we could get the 5 in the morning and offers herself to to balance the budget is to preserve the Federal Reserve Board to take its foot give milk. This is a working cow. kind of services that small States need. off the brake and get a little economic With these cows, if you have 10,000 We could commit ourselves to just growth, we ought to be able to balance and they are in a feed lot, they sit reducing the rate of growth to 3 per- the budget in 5 years. The Federal Re- around, eat all day and belch a lot. cent across the board or 5 percent serve Board cranks up interest rates They do not shift much. So you have a across the board. Instead, we have a because they say our economy is grow- big herd, small herd; big interests, lit- very complicated bill before us. It is a ing too fast. Let us get the Fed to get tle interests; big folks, little folks. bill that makes sense. The year 2002 its foot off the brake, get some growth, The entire bill does exactly what it makes a lot of sense to me. That is the and we can do it before 7 years. That is does to cows. Tax cuts? The big inter- first midterm election following the not the debate, 7 years, 5 years, 8 years. ests can smile. They get a lot. Little election that will take place in the Mr. President, the Senate is not in guys, little folks? There is not much year 2000. It gives the American public order. there. Spending cuts? The little folks, a chance to really react if Congress has The PRESIDING OFFICER. The Sen- they bear the burden. Big folks, no failed to meet its commitment. ate will be in order. problem. I really have come to the floor today Mr. DORGAN. Mr. President, the I have not had an opportunity to to say I just do not believe the Presi- budget reconciliation bill that we are have the analysts look at this, but they dent can reject this continuing resolu- now debating should have come to the were able to look at the Senate’s ver- tion that we have sent to him. In my floor of the Senate by June 15. That is sion of this bill, and here is what they judgment, he has campaigned for a 5- what the law requires. Now we are 5 said. And let me talk about this in year balanced budget during his cam- months later and we have a bill. terms of people, because that’s what paign in 1992. He has accepted the 7- Of course, no one in this Chamber has our country is all about. year period on several occasions. We read it—no one. Not one Member of the Let us take a roomful of people, just are asking for no more than he himself Senate, in my judgment, has read this a roomful the size of my hometown of has pledged in the past to the Amer- entire bill. It just came yesterday. It 400 people, and set up chairs so they ican public. And in the State of the was put in the Congressional RECORD in are all seated. You say, ‘‘By the way, Union Message, when he came before us legislative language of I guess probably let’s figure out who in here has what in 1993, he urged us to use the Congres- 1900 pages long. But I wanted to ex- money. Let’s take the 20 percent in S 17250 CONGRESSIONAL RECORD — SENATE November 17, 1995 here with the lowest income, and you The House of Representatives wanted cause the sky is the limit. We are all all move your chairs over to this side to repeal this alternative minimum tax loaded when it comes to the star wars of the room.’’ So we have all of you completely. This conference report program, but a 40 percent cut in a tiny with the lowest income, 20 percent of agreement would in effect repeal the program called Star Schools. you sitting over there. Now we are alternative minimum tax with respect Nowhere is there a better example of going to tell you about your spending to depreciation. warped priorities, in my judgment. cuts. The folks with the 20 percent of What does that mean? It means 2,000 Tax cuts. I would like to see tax cuts the lowest incomes in this room, we corporations in America will get a $7 for every American, but I would say will give you 80 percent of the burden million tax cut each, on average—$7 this. I offered an amendment in this of the spending cuts. million apiece for 2,000 corporations Chamber saying let us at least limit The news is not all bad, however. You buried on page 12638. the tax cuts to those who make $250,000 folks with the 20 percent of the highest Is this what we are supposed to vote a year or less and use the savings from incomes, move your chairs over to this for? If we do not vote for this, are we that limitation to reduce the hit on side of the room because we have some somehow thickheaded? Or is this a Medicare. Of course, that did not pass. awfully good news for you. We are gift? Everybody here knows that every dol- going to cut taxes, and you folks, you Is this one of those special little lar of tax cut in this bill is borrowed. 20 percent that have the highest in- prizes like the ones that go to the big No one can deny that. The facts dem- comes in this room, you get 80 percent herd for manure management, one of onstrate it. Every single dollar that is of the tax cuts. those little prizes that goes to the big given in a tax cut is going to be bor- Let me repeat that. Under this bill, interests that we are not supposed to rowed. Every dollar of tax cuts will in- the 20 percent with the least income see and we are not supposed to debate? crease the Federal debt by a dollar. get hit with 80 percent of the burden of Maybe this would come to the floor Balanced budget. We are told this is the budget cuts or spending cuts. And under normal circumstances and we the balanced budget. Well, again, let the 20 percent with the highest in- could debate the wisdom of such a pol- me commend the Republicans because I comes get 80 percent of the rewards of icy at a time when we say to 55,000 kids think there needs to be a greater and the tax cuts. on Head Start: We do not have enough more energetic effort to try to balance Some of us think that is not a fair money for you. You are going to get the budget, but this budget is not bal- way to apportion the burden of spend- kicked off the Head Start program; you anced. The Director of the Congressional ing cuts and the blessings of tax cuts. kids going to college, you are going to Budget Office says it is not a balanced Let me talk about some other provi- pay more to go to college. We do not budget. It will have a $108 billion defi- sions that are in this bill. I will bet have enough money for student finan- cit in the year 2002. I can read the let- there are not 1 or 2 percent of the Sen- cial aid; you folks on Medicare pay ter if you want. She wrote it on Octo- ate who understand what they are. A more and get less for your health care; ber 19. couple of people put them in here, so you people on Medicaid, we will block You can call it a balanced budget if they probably know. grant that money to the States and you misuse $110 billion in Social Secu- Go to page H 12680 of the RECORD, maybe they will have money for your rity funds in the year 2002, but, of which is where this bill was placed last health care, or maybe not. course, that would be dishonest, and it evening, and you find ‘‘Repeal of inclu- But we say we have plenty of money would also violate the law. sion of certain earnings invested in ex- to give a tax break to companies that This is not a balanced budget. It has cess passive assets.’’ It reads, ‘‘Para- move their jobs overseas, and we have a $108 billion deficit in 2002. In fact, the graph 1 of section 951(a) relating to plenty of money to virtually repeal the very budget bill that was brought to amounts included in gross income of alternative minimum tax. the floor that was described as the Bal- U.S. shareholders’’ et cetera, ‘‘Repeal Some of us think that is not a prior- anced Budget Act has on page 3 under of inclusion amount, Section 956(a) is ity that makes much sense. the category ‘‘Deficits,’’ $108 billion in repealed.’’ Mr. President, how much time is re- deficits in the year 2002. So it is not a What does that mean? I will bet there maining? balanced budget. is not anyone on the floor who knows The PRESIDING OFFICER (Mr. We are not talking about the facts what that means. Not one person, I will FRIST). About 5 minutes. when people assert that it is a balanced bet, knows what that means. Mr. DORGAN. Mr. President, yester- budget. I will tell you what it means, Mr. day, I spoke in the Chamber about pri- There are many ways to create a bal- President. It means several hundreds of orities and choices. Let me in the mid- anced budget. There are many compet- millions of dollars is given to the larg- dle of my remarks again compliment ing interests in this country. There are est corporations around, who move the Republicans, the majority party. almost unlimited needs, and there are their jobs overseas, earn income over- Their desire for a balanced budget is limited resources. We would do this seas, and under today’s law must repa- commendable. I compliment them country a favor in my judgment by cre- triate that income and pay taxes on it genuinely for it. The desire ought to be ating a fiscal policy that balances the to this country. universally shared on this floor. budget the right way. As we do it, let But this bill on this page says we are The question of how you achieve that us still continue to invest in the things of a different mind. We would like in goal, the choices and the priorities you that make America great; let us con- this bill to put a bow and some wrap- make, are important. They are impor- tinue to make our promises. ping and a little package which we tant to a lot of people. What makes America great? Invest- want to give those companies to en- I was in the Chamber yesterday talk- ment in education and investment in courage them to continue to keep their ing about a little program called Star our children advance this country’s jobs outside of this country—several Schools, a tiny little program. It tries economic interests. hundred millions of dollars in a tax cut to create Star Schools in math and You have all heard the admonition: if to encourage companies to stay out of sciences, at an annual cost of $25 mil- you are worried about a year, plant this country with their jobs. That is lion. This bill would cut Star Schools rice; if you are worried about 10 years, one. by 40 percent—40 percent in a tiny lit- plant some trees; if you are worried How about page 12638, ‘‘corporate al- tle program. about a century, educate your children. ternative minimum tax reform″? Not There’s another program called star Education advances this country’s in- many will know what this means, ex- wars. That one is increased 100 percent. terests. That is an investment. We do cept in the old days you would read a The majority’s priority is star wars, this country no favor by deciding that story that said XYZ corporation made which is not ordered, not needed, not the way to balance the Federal budget $2 billion in income and paid zero in in- wanted. In the defense spending bill is cut education and build star wars. come taxes. So the Congress said that they boosted the Pentagon’s star wars The choices, it seems to me, are dif- is not very fair. So let us have an alter- program by 100 percent. Supposedly we ficult, but they are not choices in native minimum tax so that we do not have plenty of money, hundreds of mil- which we have to reach the wrong re- have to read stories like that. lions of dollars, for that program be- sult time after time after time. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17251 There are many things, as I said run up this deficit; it’s going to take a President Clinton has changed his when I started, in this proposal for decade to wipe it out * * *.’’ mind on Medicare spending a good which we should commend the Repub- On October 19, President Clinton number of times as well. licans, but there can be a much better changed his mind again about bal- At the AARP Presidential Forum in approach to balancing the budget, fair- ancing the budget. He stated ‘‘Well, I 1993, President Clinton proposed to re- er to all Americans if we could get to- think we could reach it in seven years strain the growth of Medicare spending gether and understand the con- * * *’’ to two times the rate of inflation. He sequences of these choices on all of the So you see, Mr. President, my point said, and I quote: interests, big interests and little inter- to Mr. Panetta was that if he and the Today. .. . Medicare (is) going up at three ests, big folks and little folks and all other White House negotiators would times the rate of inflation. We propose to let Americans. be a bit more flexible, we could quickly it go up at two times the rate of inflation. I yield back the remainder of my resolve this impasse that has shut That is not a Medicare—cut . .. time. down the Government. Mr. President, guess what? President The PRESIDING OFFICER. The Sen- I am sure Mr. Panetta is persuasive Clinton has changed his mind again— ator from Michigan. enough to convince the President to on two different counts here. Mr. ABRAHAM. Mr. President, at change his mind again * * * to do the The Republican plan to save Medi- this time I would yield 10 minutes to right thing by committing to support- care allows Medicare spending to go the Senator from Iowa. ing a CBO certified? Well, CBO has long up—now listen carefully—two times Mr. GRASSLEY. Mr. President, at been recognized as the reliable, unbi- the rate of inflation. the close of Tuesday’s first budget ased, nonpartisan budget scorer. That is exactly what President Clin- meeting with White House officials, I Unfortunately, on this point, Presi- ton proposed in 1993, but now he at- expressed to Chief of Staff Leon Pa- dent Clinton has also changed his mind tacks Republicans for proposing the netta and Treasury Secretary Rubin again. same. my disappointment with their inflexi- In 1993, President Clinton touted CBO Furthermore, whereas in 1993 he ar- ble posture. as the independent and more accurate gued before AARP that doing this was I told Mr. Panetta, and these are my budget scorer. not a cut, now that the Republicans are exact words: But then he changed his mind. He recommending this, President Clinton Don’t assume the President isn’t going to now is trying to convince Americans says that it is a cut. change his position. He’s changed his mind that OMB, which is controlled by Mr. President, we could go on and on before. President Clinton, is the reliable, unbi- and on, if we attempted to list every Mr. Panetta did not respond and just ased, and nonpartisan budget scorer. time President Clinton changed his walked off. President Clinton offered what he mind, but I will not suffer my col- It was suggested to me that this may claimed was a 10-year balanced budget leagues through such an ordeal. have been taken as a slap at or insult plan that was cooked up by the OMB But the point should be clear to to the President. that he controls. White House negotiators such as Mr. Let me assure you that I meant no Even the chairman of the Democratic Panetta, that the President does malice, nor did I intend it as a partisan Senatorial Campaign Committee, Sen- change his mind often, and thus, they swipe at the President. ator BOB KERREY, criticized the Presi- should not be so closed-minded and en- I was simply making a statement of dent’s so-called 10-year balanced budg- trenched in our negotiations. fact. et plan by stating Almost everything we Republicans And the fact is, the President and Americans want, and that remark- changes his mind quite frequently. They cooked the numbers . . . He needs to And if the President refuses to nego- get back to the CBO numbers. ably has led to this unfortunate junc- tiate in person with congressional lead- And, of course, as we all know, CBO’s ture, the President has at one time or ers, then those he sends must fully ap- analysis exposes the fact that the another, has said that he supports as preciate the fact that the President President’s budget does not balance, well. changes his mind a lot and that they as not in 5 years, 7 years, 10 years or ever. There is no justified reason for him White House negotiators must be more Instead, CBO shows that it would to disagree with us now. flexible and open-minded. compound the burden of our children He said we could balance the budget The fact that the President changes and grandchildren by increasing the in 7 years, so let us do it. his mind frequently may not be well deficit to the tune of over $200 billion If he can come up with a plan to do known by the public at large, but it is each of those 10 years. it in 5 years as he said he would, then something that those of us who work This is why President Clinton’s budg- let us consider that instead. with him know very well. et was defeated in the Senate by a vote He said CBO is the most reliable The House Appropriations ranking of 96 to 0. Not one Democrat voted for budget scorer, so let us use their num- Democrat, Congressman DAVID OBEY President Clinton’s budget, not one Re- bers, instead of those rosy numbers understands this. publican. cooked up by his OMB. In June Mr. OBEY told the Associated President Clinton has changed his He said he wanted to restrain the Press: mind on taxes. He campaigned promis- growth of Medicare spending to two I think most of us learned sometime ago ing a large tax cut. times inflation like we Republicans are that if you don’t like the President’s posi- Once elected President, he changed currently proposing, so let us do it. tion on a particular issue, you simply need his mind. He instead pushed for and He promised Americans a major tax to wait a few weeks. signed into law the largest tax increase cut, so he should join us Republicans Again, that was an observation, a in our Nation’s history—$251 billion. It and just do it. simple statement of fact, from a Demo- was a tax increase that hit our elderly It is time President Clinton quit lis- cratic congressional leader, that Presi- and young people alike. tening to his Democrat campaign con- dent Clinton changes his mind quite Recently, he changed his mind again sultants who brag about subscribing to frequently. about his 1993 tax increase. He told terror to make people hate, and start President Clinton has changed his people in Houston that, and I quote: listening to some sound advice that is mind frequently on the question of a Probably there are people in this room still good for the country, class warfare and balanced budget. On January 8, Presi- mad at me at that budget because you think generational/warfare tactics. dent Clinton promised to ‘‘present a 5- I raised your taxes too much. It might sur- Mr. President, it is time to do the year plan to balance the budget.’’ prise you to know that I think I raised them right thing. On May 20, he said he thought bal- too much, too. There is no reason President Clinton ancing the budget ‘‘clearly can be done I do not suppose it is any more than cannot change his mind one more in less than 10 years.’’ So you see, he a mere coincidence that he had that time—one more time to do what is changed his mind again. particular change of mind during his right. He changed his mind again on June Presidential campaign fundraiser in As the ad campaign says, ‘‘Just Do 13, when he said, ‘‘It took decades to Texas. It.’’ S 17252 CONGRESSIONAL RECORD — SENATE November 17, 1995

President Clinton, Just Do It. dent Reagan’s term and President going to put in the RECORD to back up I yield the floor, and I reserve the re- Bush’s. But we really never really had some of the comments I am going to mainder of my time for the rest of the a vote to balance the budget. We never make. speakers. had a vote that would enact into law One, I want to refute some of the Mr. ABRAHAM. I yield 10 minutes to changes necessary to balance the budg- statements that President Clinton has the Senator from Oklahoma. et. made. He said, his 1993 budget reduced The PRESIDING OFFICER. The Sen- Tonight we are going to have that deficits by $500 billion. I heard him say ator from Oklahoma. vote. And I understand that our col- that as recently as yesterday. Mr. NICKLES. First, Mr. President, I leagues on the Democrat side of the would like to compliment my colleague aisle and the President will not support Mr. President, I ask unanimous con- and friend from Iowa, Senator GRASS- us. I think that is unfortunate. I hope sent to have printed in the RECORD a LEY, for an excellent speech. Also, I that after this vote maybe they will chart that shows the CBO baseline in would like to compliment Senator DO- work with us to enact a balanced budg- January 1993, which had very high defi- MENICI for his leadership in bringing et. cit projections, and the CBO baseline in this budget package to the floor, as For the first time in history, we are August of 1995, which had significantly well as Senator DOLE and Senator going to have the courage to do what is lower deficits. This chart shows why ROTH, and Senator ABRAHAM, who is right and actually balance the budget. those deficits are lower. I ask unani- managing the floor, and I think doing Such action by Congress has not hap- mous consent to have that chart and an exceptional job. pened in decades. You would have to go others printed in the RECORD at this Mr. President, in my opinion, this is back to 1969 to find the last time we time. probably the most important vote that balanced the budget. There being no objection, the charts we will cast in my 15 years in the Sen- I think it is important, too, that we were ordered to be printed in the ate. We had historic votes during Presi- use facts. I have several charts I am RECORD, as follows: SOURCE OF DEFICIT DECLINE SINCE PRESIDENT CLINTON TOOK OFFICE

Clinton term Out Years 103d Congress 104th Congress 105th Congress Total 1993 1994 1995 1996 1997 1998

CBO deficit baseline (January 1993) ...... 310 291 284 287 319 357 1,848 Tax and fee increases ...... 0 (28) (47) (54) (65) (64) (259) Spending increase/(cuts) ...... 4 9 3 (18) (39) (56) (98) Technical, economic, and debt service ...... (59) (69) (79) (24) 2 (7) (236) CBO deficit baseline (August 1995) ...... 255 203 161 189 218 229 1,255 Source: Congressional Budget Office reports. Amounts which reduce the deficit are shown in (parenthesis). Details may not add due to rounding.

MEDICARE SPENDING COMPARISONS [Gross mandatory outlays in billions]

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

Balanced Budget Act ...... 178 196 211 217 228 250 270 293 1,664 Growth over 1995 ...... 18 33 39 50 72 92 115 417 Percent growth ...... 10 8 3 5 10 8 8 64 7.4 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: SBC Majority & OMB data. Includes GME outlays.

BUDGET PLAN COMPARISON

Sum 1995 1996 1997 1998 1999 2000 2001 2002 1996– Compared 2002 to a freeze

Balanced Budget Act (CBO scoring): Outlays ...... 1,518 1,590 1,629 1,660 1,703 1,764 1,801 1,857 12,004 1,378 Revenues ...... 1,357 1,412 1,440 1,514 1,585 1,665 1,756 1,861 11,233 607 (Deficit)/surplus ...... (161) (178) (189) (146) (118) (100) (46) 4 (773) Clinton budget (OMB scoring): Outlays ...... 1,518 1,579 1,655 1,713 1,777 1,847 1,903 1,966 12,440 1,814 Revenues ...... 1,357 1,415 1,474 1,549 1,628 1,716 1,817 1,903 11,492 1,993 (Deficit)/surplus ...... (161) (163) (179) (161) (146) (125) (91) (58) (923) Clinton budget (CBO scoring): Outlays ...... 1,518 1,611 1,680 1,737 1,822 1,904 1,983 2,073 12,810 2,184 Revenues ...... 1,357 1,416 1,467 1,538 1,608 1,684 1,772 1,864 11,349 1,850 (Deficit)/surplus ...... (161) (196) (212) (199) (213) (220) (211) (210) (1,461) Sources: CBO and OMB.

EARNED INCOME CREDIT

Minimum in- Maximum in- Year Maximum come for max- come for max- Phaseout in- credit imum credit imum credit come

Two or more children Historical 1976 ...... $400 $4,000 $4,000 $8,000 1977 ...... 400 4,000 4,000 8,000 1978 ...... 400 4,000 4,000 8,000 1979 ...... 500 5,000 6,000 10,000 1980 ...... 500 5,000 6,000 10,000 1981 ...... 500 5,000 6,000 10,000 1982 ...... 500 5,000 6,000 10,000 1983 ...... 500 5,000 6,000 10,000 1984 ...... 500 5,000 6,000 10,000 1985 ...... 550 5,000 6,500 11,000 1986 ...... 550 5,000 6,500 11,000 1987 ...... 851 6,080 6,920 15,432 1988 ...... 874 6,240 9,840 18,576 1989 ...... 910 6,500 10,204 19,340 1990 ...... 953 6,810 10,730 20,264 1991 ...... 1,235 7,140 11,250 21,250 November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17253 EARNED INCOME CREDIT—Continued

Minimum in- Maximum in- Year Maximum come for max- come for max- Phaseout in- credit imum credit imum credit come

1992 ...... 1,384 7,520 11,840 22,370 1993 ...... 1,511 7,750 12,200 23,049 1994 ...... 2,528 8,425 11,000 25,296 1995 ...... 3,110 8,640 11,290 26,673 Clinton expansion 1996 ...... 3,564 8,910 11,630 28,553 1997 ...... 3,680 9,200 12,010 29,484 1998 ...... 3,804 9,510 12,420 30,483 1999 ...... 3,932 9,830 12,840 31,510 2000 ...... 4,058 10,140 13,240 32,499 2001 ...... 4,184 10,460 13,660 33,527 2002 ...... 4,320 10,800 14,100 34,613 Balanced Budget Act 1996 ...... 3,564 8,910 11,630 25,425 1997 ...... 3,680 9,200 12,010 26,254 1998 ...... 3,804 9,510 12,420 27,145 1999 ...... 3,932 9,830 12,840 28,059 2000 ...... 4,058 10,140 13,320 28,940 2001 ...... 4,184 10,460 13,660 29,856 2002 ...... 4,320 10,800 14,100 30,821 One child Historical 1976 ...... 400 4,000 4,000 8,000 1977 ...... 400 4,000 4,000 8,000 1978 ...... 400 4,000 4,000 8,000 1979 ...... 500 5,000 6,000 10,000 1980 ...... 500 5,000 6,000 10,000 1981 ...... 500 5,000 6,000 10,000 1982 ...... 500 5,000 6,000 10,000 1983 ...... 500 5,000 6,000 10,000 1984 ...... 500 5,000 6,000 10,000 1985 ...... 550 5,000 6,500 11,000 1986 ...... 550 5,000 6,500 11,000 1987 ...... 851 6,080 6,920 15,432 1988 ...... 874 6,240 9,840 18,576 1989 ...... 910 6,500 10,240 19,340 1990 ...... 953 6,810 10,730 20,264 1991 ...... 1,192 7,140 11,250 21,250 1992 ...... 1,324 7,520 11,840 22,370 1993 ...... 1,434 7,750 12,200 23,054 1994 ...... 2,038 7,750 11,000 23,755 1995 ...... 2,094 6,160 11,290 24,396 Clinton expansion 1996 ...... 2,156 6,340 11,630 25,119 1997 ...... 2,227 6,550 12,010 25,946 1998 ...... 2,305 6,780 12,420 26,846 1999 ...... 2,380 7,000 12,840 27,734 2000 ...... 2,455 7,220 13,240 28,602 2001 ...... 2,533 7,450 13,660 29,511 2002 ...... 2,615 7,690 14,100 30,462 Balanced Budget Act 1996 ...... 2,156 6,340 11,630 23,055 1997 ...... 2,227 6,550 12,010 23,814 1998 ...... 2,305 6,780 12,420 24,637 1999 ...... 2,380 7,000 12,840 25,454 2000 ...... 2,455 7,220 13,240 26,252 2001 ...... 2,533 7,450 13,660 27,085 2002 ...... 2,615 7,690 14,100 27,957 1976 ...... (1) (1) (1) (1) 1977 ...... (1) (1) (1) (1) 1978 ...... (1) (1) (1) (1) 1979 ...... (1) (1) (1) (1) 1980 ...... (1) (1) (1) (1) 1981 ...... (1) (1) (1) (1) 1982 ...... (1) (1) (1) (1) 1983 ...... (1) (1) (1) (1) 1984 ...... (1) (1) (1) (1) 1985 ...... (1) (1) (1) (1) 1986 ...... (1) (1) (1) (1) 1987 ...... (1) (1) (1) (1) 1988 ...... (1) (1) (1) (1) 1989 ...... (1) (1) (1) (1) 1990 ...... (1) (1) (1) (1) 1991 ...... (1) (1) (1) (1) 1992 ...... (1) (1) (1) (1) 1993 ...... (1) (1) (1) (1) 1994 ...... 306 4,000 5,000 9,000 1995 ...... 314 4,100 5,130 9,230 Clinton expansion 1996 ...... 324 4,230 5,290 9,520 1997 ...... 334 4,370 5,460 9,830 1998 ...... 346 4,520 5,650 10,170 1999 ...... 357 4,670 5,830 10,500 2000 ...... 369 4,820 6,020 10,840 2001 ...... 380 4,970 6,210 11,180 2002 ...... 392 5,130 6,410 11,540 Balanced Budget Act 1996 ...... 0 (1) (1) (1) 1997 ...... 0 (1) (1) (1) 1998 ...... 0 (1) (1) (1) 1999 ...... 0 (1) (1) (1) 2000 ...... 0 (1) (1) (1) 2001 ...... 0 (1) (1) (1) 2002 ...... 0 (1) (1) (1) Source: Joint Committee on Taxation. S 17254 CONGRESSIONAL RECORD — SENATE November 17, 1995 EARNED INCOME CREDIT—REDUCING PROGRAM COSTS and it is going to give all these wealthy times what it was just 9 years ago. In [Fiscal year, billions of dollars] people big tax cuts. They say that we other words, we had a lot of entitle- are going to cut these programs and ment programs just exploding in cost. Revenue Fiscal year Outlay cost cost Total cost transfer more wealth to the wealthy.’’ Now, for the first time, we are cur- That is totally, completely, irref- tailing the growth of those programs. Historical utably false. And I will put the facts in Some people say we are slashing those 1985 ...... 1.179 0.482 1.661 1986 ...... 1.498 0.586 2.084 the record to prove it. But first, I want programs. I take issue with that. 1987 ...... 1.552 0.553 2.105 to talk about these cuts for a second. Medicare is probably the one issue 1988 ...... 2.996 1.033 4.029 1989 ...... 4.276 1.655 5.931 For example, Medicare spending rises that has been demagogued by oppo- 1990 ...... 4.669 1.943 6.612 under our plan. This year it is $178 bil- nents of this package more than any 1991 ...... 5.430 1.681 7.111 1992 ...... 7.955 2.756 10.711 lion. In the year 2002, it is $293 billion. other. I mention, in our budget, that in 1993 ...... 10.062 3.091 13.153 That happens to be a 65-percent in- 1995 in Medicare we spend $178 billion. 1994 ...... 12.254 3,489 15.743 1995 ...... 16.730 3.117 19.847 crease. Not a decrease, an increase. By the year 2002, we spend $293 billion. Medicaid spending rises from $89 bil- Clinton expansion That is a 65 percent increase. 1996 ...... 20.257 3.505 23.762 lion to $122 billion. That is a 37-percent Mr. President, what is shocking—I 1997 ...... 22.039 3,831 25.870 increase. Overall mandatory spending hope my colleagues on the other side of 1998 ...... 22.922 4.025 26.947 1999 ...... 23.893 4.184 28.077 increases from $739 billion to over $1.93 the aisle will look at this chart—as I 2000 ...... 24.938 4.400 29.338 trillion. That is a 48-percent increase. compare the spending that we propose 2001 ...... 25.897 4.639 30.536 2002 ...... 26.912 4.823 31.735 Maybe we did not cut spending in Medicare every year to the spending enough. Those are big increases. Today Balanced Budget Act proposed in the President’s June budg- 1996 ...... 20.094 3.445 23.539 we are spending about $1.5 trillion. In 7 et—and I find very, very little dif- 1997 ...... 18.771 2.648 21.419 years, we are going to spend $1.85 tril- ference. Under our proposal, Medicare 1998 ...... 19.409 2.731 22.140 1999 ...... 20.137 2.793 22.930 lion. In other words, spending increases grows at an annual rate of 7.4 percent. 2000 ...... 20.893 2.907 23.800 every single year. Under the President’s proposal, Medi- 2001 ...... 21.607 3.012 24.619 Do we slow the growth of spending 2002 ...... 22.453 2.978 25.431 care grows at 7.5 percent. down? Yes. Do we make these programs Under our proposal, for which we are Source: Joint Committee on Taxation. grow at more affordable rates? Yes. Do being lambasted so much—I heard peo- Mr. NICKLES. Mr. President, what we offer some tax relief for middle-in- ple say we are killing Medicare and we this chart shows is that the President come Americans? Yes. Should we make are being unfair to senior citizens—ac- did not make any spending cuts in his apologies for that? I say definitely not. tually, our budget proposes spending first 3 years whatsoever, none. He did I think this package that we have more in the year 2002 than the Presi- have significant tax increases, actu- put together is a fair package. I think dent’s proposal in Medicare. That is ally, the largest tax increase in his- it is a good package. kind of surprising. tory. But the bulk of the so-called defi- Also, I have to say, Mr. President, we My point is, these cuts are not draco- cit reduction was technical changes, have to compare it to the President’s nian, they are not drastic. Somebody economic changes and debt service sav- budget. What has he submitted as his said, ‘‘The Republicans are trying to ings, in other words, reductions that plan? In January 1995, he submitted a cut Medicare $270 billion and the Presi- were not the result of his policies. budget that never came into balance. dent is only trying to cut $124 billion.’’ But I wanted to note, of that $500 bil- His budget actually had deficits rising The President uses different eco- lion in so-called deficit reduction, in substantially. nomic assumptions. He assumes the the first 3 years there were no spending He submitted a revised budget in health care costs are going to grow at cuts. Actually, spending increased over June. According to CBO, the deficits in a slower rate than we do on the Repub- the CBO baseline $4 billion in 1993, $9 his new budget go up as well. Let me lican side. billion in 1994, $3 billion in 1995. So give you his deficit figures. This year, Our point is that we are using the now, those facts are in the record. the deficit was $164 billion. Under the Congressional Budget Office. I might Also, we heard the President say in one President’s plan, it rises to $210 billion mention, President Clinton originally press conference that he wanted to bal- in the year 2002. said that he would use the Congres- ance the budget. He mentioned the Our budget has a surplus in the year sional Budget Office. It does make a word ‘‘balanced budget’’ 16 times in a 2002 of $4 billion. We actually balance difference. Over a 10-year span, the recent short press conference. As a the budget in 7 years. The President’s President’s budget comes to balance by matter of fact, he has mentioned sev- budget deficits continue to escalate to assuming a more favorable economic eral times about his desire to balance over $200 billion for as far as the eye situation that equals $475 billion more the budget. can see. That is the difference in our that he would like to spend. As a candidate in 1992, he said that he visions for the future. But the President, in his State of the would submit a 5-year plan to balance Those are the only two proposals on Union Address in 1993, explained to the budget. On May 20 of this year he the table. I might mention, the Presi- Congress why he used CBO numbers to said, ‘‘I think balancing the budget dent’s proposal was about 20 pages on a score his budget proposal. He said: clearly can be done in less than 10 fax machine. Not a significant, sub- years.’’ In June he said, ‘‘It’s going to stantive document. It was more a theo- I did this so that we could argue about pri- orities with the same set of numbers. I did take a decade to wipe out the deficit.’’ retical document. We have a real budg- this so that no one could say I was estimat- In October he said that ‘‘We could et that says if we curb these entitle- ing my way out of this difficulty. I did this reach it,’’ balancing the budget, ‘‘in 7 ment programs and make other spend- because if we can agree together on the most years.’’ Also, in October he said, ‘‘We ing cuts, we are going to have a bal- prudent revenues we’re likely to get if the can do it in 8 years.’’ Also, in October anced budget. recovery stays and we do the right things he said, ‘‘We can do it in 9 years.’’ The Republicans are going to change economically, then it will turn out better for President has been all over the lot on budget laws. We did not balance the the American people than we say. how long it would take to balance the budget under President Reagan, and I The President was right: We should budget. love President Reagan. We did not do it use the same numbers. But unfortu- The point is, Republicans actually under President Bush, and I think very nately, now he is trying to estimate his have a bill—not a statement—we have highly of President Bush. But we never way out of difficulty. a bill before us which, if enacted, will had the votes or the courage to curtail We need to balance the budget. We balance the budget in 7 years. I think the growth of entitlement programs. need to make difficult decisions. It is that is real. It is significant. It is sub- Some of these programs are explod- not always easy to do, but I think we stantive. ing in cost. Over the last several years have a very balanced proposal, one that Now, I heard some of my colleagues Medicaid grew at 28, 29, 30, 31 percent. does not inflict undue paid. Somebody on the floor say, ‘‘Well, if we enact The earned-income credit grew from $2 said, ‘‘Oh, look at all the pain.’’ I do your plan, it is going to devastate Med- billion in 1985 to $23 billion in 1994. not see pain in this proposal. I see us icare, it is going to devastate Medicaid, That is an unbelievable growth rate, 11 doing what we should do. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17255 Let us look at Medicare. My Demo- We said we were going to do it. We Mr. President, I have already voted crat colleagues on the Finance Com- are going to do it. I think what we are for a balanced budget. It was the so- mittee offered to cut Medicare part A, doing is vitally important. I thank the called CONRAD plan. It was a plan that the hospital portion, by $89 billion. manager of the bill and I yield the I did not agree with every part of, but They offered that as an amendment on floor. I think it was far more fair than the the floor too. So we basically agree on Mr. EXON addressed the Chair. plan or any other plan that we have the amount of cuts on hospitals. The PRESIDING OFFICER (Mr. had on the floor. It was a plan that Then they said, ‘‘Republicans are DEWINE). The Senator from Nebraska. gave tax breaks to middle-class work- trying to raise premiums on part B Mr. EXON. Mr. President, I yield 15 ing families. It closed tax loopholes, re- beneficiaries, the doctor portion.’’ minutes to the Senator from Massa- duced corporate welfare. But instead, What do we really do? We keep the pre- chusetts. in this plan we are now confronted mium rate at 31.5 percent of program Mr. KERRY. I thank the Chair and with, contrary to the fairness that we costs. That is what the beneficiaries the distinguished minority manager of tried to achieve previously, the Repub- pay today. That is fair; that is reason- the bill. licans are raising $32 billion worth of able. The program started out at 50 Mr. President, I just heard one speak- taxes from Americans earning less percent. Keeping it at 31.5 percent, I er say that this will be the most impor- than $30,000 a year. think, is fair. tant vote in the Senate in 15 years. I I voted for a balanced budget plan Do premium costs increase? Yes, but respectfully disagree. I think the most that was honest about the need to do they increase under the President’s important vote in the Senate in 15 something about Medicare. I agree proposal too. As a matter of fact, the years will be the vote when we return with my colleagues. There has been a President’s increase in part B pre- with a reconciliation package that has lot of heightened rhetoric about it. The miums follow right along with ours. been negotiated and which fairly re- truth is that we have to restrain the There is only, I think, a $5 difference in flects the administration, the minority growth on entitlements generally, and the year 2002 in premiums. What he did and the majority in the Senate, as an we have to retain the growth particu- not tell people is, ‘‘Present law goes expression of all of our desires to bal- larly in Medicare and Medicaid the down to 25 percent, and I am going to ance the budget. That will be the most fastest-growing portions of the budget. take credit for that and really lam- important vote. But I do not want to I voted for a budget, Mr. President, baste and demagog the Republicans.’’ quibble or deny the notion that this is that was fair in what it asked seniors The fact is, keeping premium levels not an important statement. to do in sharing that burden. It saved at 31.5 percent is fair. We also say I would like to say that, from at the Medicare plan without cutting wealthier people should pay a little least this Senator’s perspective, our twice as much as we need to, twice as more. We should not be asking every- colleagues on the other side of the aisle much as is currently reflected in this body who is making $20,000 to be subsi- deserve credit. I think it is appropriate budget. I voted for a commonsense re- dizing wealthier people on their part B for us to talk more honestly about duction in Medicare to save the sys- premium. what is at stake here and, perhaps, de- tem. The Republicans are essentially, The PRESIDING OFFICER. The Sen- part from some of the partisan rhet- ator’s time has expired. in order to give a tax cut, taking the oric, though it is hard because of the Mr. NICKLES. I ask unanimous con- heart out of Medicare with the $270 bil- circumstances. sent for 2 additional minutes. lion reduction. The PRESIDING OFFICER. Without The fact is that the majority is prov- I voted, Mr. President, for a balanced objection, it is so ordered. ing what many of us said as we opposed budget that would preserve access to Mr. NICKLES. We also made some the balanced budget amendment. What health care for those people with dis- tax changes that are fair to American we said was that we do not need an abilities, for pregnant women, and for families. I have heard a lot of col- amendment, we simply need legislators children. While we reduced—in our leagues say, ‘‘Well, that’s not fair.’’ with the courage to balance the budg- budget—Medicaid by about $125 billion, The heck it is not. We are giving tax et. And indeed, the Republicans have the Republicans have come to the floor relief to individuals and families who picked up that challenge and they de- with a budget that reduces it by $182 have kids, a $500 per child tax credit. serve credit for having returned to the billion over 7 years. Somebody says that does not mean floor with a budget that, in their view, I voted for a balanced budget that in- very much. Well, I disagree. I only have expresses their values and their direc- vested in our children’s education. It one child now who would qualify, be- tion for the country. saved educational access, vital for job cause they have to be under the age of So they are offering a balanced budg- growth and competitiveness. But the 18. I used to have four kids who would et. Regrettably, their choices, which Republicans now want to cut student qualify. are more unilateral than most of us loan programs by more than $5 billion, A lot of American families need help. would have hoped we would arrive at at a time when it is harder and harder Four kids is $2,000 in tax relief. That is because in effect it represents exclu- for average Americans to send their targeted toward the American family. sively the Republican House and Re- kids to college. They also are going to That will help. An individual or couple publican Senate to the exclusion of wind up taking 1.8 million kids off of who has two kids gets $1,000. That is most of the efforts of the rest of us. student loan rolls, and reducing by $1,000 that they get to spend on them- Theirs is a statement of values. Their 1,250 the number of colleges that can selves instead of sending it to Washing- budget sets forth the Gingrich-Repub- participate in a direct lending plan. ton, DC, to have politicians spend on a lican view of how America ought to be. That is good for banks, Mr. President, multitude of items. And the fact that some of us oppose but it is not good for students or for It is the idea that they can choose. that view does not mean that we op- our colleges. They may want to spend it on edu- pose coming to the floor and voting for I voted for a balanced budget that cation or a home or transportation or a balanced budget. would feed hungry children in this to buy food or pay utilities. We want to I will vote ‘‘no’’ on this view of country, and it added back more than let families make that decision, not America, with the hopes that after the half of the funds for food and for chil- the Government. President has vetoed it we will return dren. But instead the Republicans are We have targeted the bulk of tax re- with a more compromised, centrist, going to slash $46 billion over the next lief to American families. We did it and hopefully more diverse, shared 7 years that would leave literally mil- with the inheritance tax; we did it with view of where this country should go in lions of children hungry in this coun- the child credit; we did it with IRA this important statement of a budget. try. savings accounts; we did it with medi- It is my hope that many of us who I voted for a balanced budget that cal savings accounts. want to balance the budget and do it would honor the service of veterans, Mr. President, I think this is a bal- responsibly, with a fair reflection of not leave them scot-free, because we anced package, it is a good package, the values of this country, will have an did in our budget reduce veterans’ pay- and it is the only package we have be- opportunity to do so after the real ne- ments by about $5 billion, but the Re- fore us that will balance the budget. gotiations take place. publicans want to recklessly cut those S 17256 CONGRESSIONAL RECORD — SENATE November 17, 1995 programs in a way that may close 35 of There is not even the certainty that my remaining time to the Senator 170 hospitals, and certainly five next our drinking water will get cleaner or from North Dakota. year. our wilderness will be protected or that Mr. CONRAD. Mr. President, this is a Mr. President, this budget process is toxic waste will be cleaned up or that critically important debate. It ought to the truest statement about any party’s we will hand down to our children a be informed, I think, by fact and rea- priorities or any individual’s sense of better country, Mr. President. son and by law. what is fair. The bottom line is that I think the least we can do in a budg- Mr. President, we have heard a lot of this budget is about people. With this et is express our responsibility to pro- talk that what we have before us is a Republican budget tonight, they re- tect the certainties that those who balanced budget. The fact is, the law verse some 60 years of a certainty that came to this floor before us fought for. says something different. The law says was built into the fabric of the Amer- I can only say to my colleagues who we do not have a balanced budget be- ican political structure—a certainty tell us this budget is a sure thing that fore the Senate. That is because if you look at sub- that our senior citizens would not grow in the words of Robert BURNS, ‘‘There title C of Social Security, the off-budg- old and be left with nothing—a cer- is no such uncertainty as a sure thing.’’ et status of Social Security trust tainty that families would be part of a This budget will create uncertainties, funds, it makes very clear that Social community and that we would care for uncertainties with respect to the envi- Security surpluses are not to be in- people, even if they were in the street, ronment, uncertainties with respect to cluded in any calculation of the deficit. even if they were suffering or in need of people’s capacity to strive to make the best of their own opportunities to get The only way the Republican plan help. achieves balance is to use every penny I wonder whether this budget is real- an education, to try to touch the new marketplace. of Social Security surplus generated ly representative of what America has between now and the year 2002 —$636 become in 1995, because if it is, then I Mr. President, there is an enormous giveaway to mining companies in this billion of Social Security surplus funds think this Senate will long be remem- will be raided so that the Republicans bered as the Senate that took away the budget. There is oil drilling in the Arc- tic National Wildlife Refuge. There are can claim their plan is balanced. good part of the certainty of American Mr. President, this is not just my water subsidies to America’s largest life, not the bad part, not the part that view. This is, in fact, the certification agricultural corporations. There is a we know with respect to welfare and from the Congressional Budget Office. royalty exemption from oil leases in other programs has distorted values. I We have been through this debate be- the Gulf of Mexico. There are lots of am talking about the good part, the fore, and on October 20, Senator DOR- little goodies in this budget which do part that allowed people to lift them- GAN and I asked the head of the CBO, if not speak to the issue of fairness in selves up by their bootstraps, that al- we follow the law, a law that 98 Sen- this country. lowed people in a nursing home to not ators voted for, and excluded Social Se- I might just say, Mr. President, with have to get rid of every cent they had curity surpluses, what would the defi- respect to some of the most important in order to stay there, the part that cit look like in 2002 under the Repub- things we hear talked about on the guaranteed that we are not going to lican plan? Senate floor, values with respect to suddenly have seniors strapped into The head of the CBO responded by children, this budget is not friendly. wheelchairs again because nursing saying the deficit in 2002 under the We have heard a lot of talk about the home standards are lifted. Those were plan presented would be $105 billion. number of children who are born out of certainties that we built into American In the conference committee that wedlock, the number of kids who des- life. number has grown. We now have a defi- perately need an opportunity through This budget takes away those cer- cit in the year 2002 under this plan, if Head Start, or who desperately need a we obey the law, of $111 billion. I think tainties, Mr. President. With this budg- hot lunch. This budget creates an enor- et, thousands and thousands of women it is important to make that point for mous shift of wealth from those who the record. and children, our fellow citizens, thou- are at the lower end struggling to sands of families, thousands of seniors, This chart shows the looting of the make ends meet and working families, Social Security trust fund that will go who are struggling to pay for food or not people on welfare but working fam- pay for health care, or simply meet the on during this period, from 1996 to 2002. ilies, and it takes that wealth from These are the yearly totals that will be rent or save something for the future, those struggling and gives it to people they will be hurt. As my friend from taken of Social Security surplus funds. at the upper end who do not need it. This is the total over the 7-year pe- North Dakota pointed out, they will be Mr. President, in the name of fair- hurt in juxtaposition to countless mil- riod—$636 billion. ness, I am pleased that the President Mr. President, we have heard from lions of people who do not need that has said he will veto this budget. The the other side assertions that the help, who will be helped. most important vote will be the vote Democrats have no alternative bal- This budget violates everybody’s fun- that occurs after we have the negotia- anced budget plan. It makes me wonder damental sense of fairness, Mr. Presi- tions that will take place in the next where some of our colleagues have dent. And that is something that we weeks, and I hope it will not take been. We have had a series of alter- ought to care about as we care about longer than weeks. It is my fervent natives offered on the floor of the Sen- the fabric of values and of life in this plea in the course of that process more ate. country. voices of America be heard and re- The one I was most deeply involved There will, as a result of this budget, flected in our budget. in was the Fair Share balanced budget no longer be a certainty in America Again, I say, Mr. President, there are plan we offered during the budget reso- that children will not go hungry. There many on this side of the aisle who lution. It was an honest balanced budg- will no longer be a certainty that an el- looked forward to the ability to be able et plan but with a substantially dif- derly widow in a Massachusetts hos- to help shape that process. It is our ferent set of priorities than those con- pital will not lose everything that she hope we will join together around rea- tained in the Republican plan. has. There is no longer a certainty that sonable figures, perhaps some combina- Let me talk about some of the dif- their children, who are already strug- tion of CBO or OMB—figures that are ferences. The Fair Share Plan balanced gling, getting more and more behind, reasonably arrived at and reflect the the budget, without counting Social will be able to pay for her care without future economic growth of this coun- Security surpluses, by the year 2004—9 jeopardizing their future. try, and that we will use those figures years without counting any Social Se- There is no certainty in this budget to come up with an intelligent budget curity surpluses. It produces more defi- that American children will get a bet- that all of us can take to America as cit reduction in 2002 than the Repub- ter shot at a decent education or a bet- we ask people to share the sacrifices lican plan. ter shot at a job, and there is no cer- necessary to balance the budget. In fact, the Fair Share Plan that 39 tainty that a pregnant mother or a dis- It is my hope that day will come Democrats in this body voted for had abled veteran will get the helping hand soon. That will be the most important $100 billion more in deficit reduction that we have always promised. vote in the U.S. Senate. I yield back than the Republican plan. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17257 At the same time, it had a substan- place that should not be cut it is those 7 years. Medicare is $2 trillion over the tially different set of priorities than funds that make it more possible for next 7 years, and Medicaid is about $1 the Republican balanced budget plan. people to develop their full potential trillion. But the biggest one of all is The Democratic balanced budget plan through education and all of the oppor- the tax entitlements, the tax pref- restored $100 billion of the $270 cut in tunities that education creates, not erences, the tax loopholes. Medicare. only for the individual but for all of We say if we are going to reduce the I know many on the other side of the the rest of us who benefit from what rate of growth of the spending entitle- aisle have said they are not cutting people are able to achieve who have ments, let us reduce the rate of growth Medicare. I ask them this simple ques- gotten as much education as they pos- of the tax entitlements as well. Let us tion: If they are not cutting Medicare, sibly can. reduce that growth to inflation plus 1 how is it that they have achieved $270 Nutrition and agriculture? We re- percent. billion of savings from what current stored $24 billion in order to have less Our friends on the other side say law provides in Medicare? How can it of a cut to food programs and to agri- there is no tax entitlement, no tax be, if they have not cut anything, that culture programs. Let me just say with preference, no tax loophole that we they have saved $270 billion over the respect to agriculture, the Republican want to close. We want to keep them next 7 years? Of course they have cut. program is to indicate they are going all. We think they are all valid. We They have cut in quality and service to kill all agriculture programs after 7 think they are all essential. what our seniors will receive through years. They have now come forward We, on our side of the aisle, do not. that program. and admitted what their plan really is. Mr. President, these are critical is- Some say, ‘‘I hear the Republicans We will not have an agriculture pro- sues that will be decided for the first saying they are spending more money gram after 7 years. They are destroying time tonight. But I think we should all on Medicare.’’ Yes, that is true. They the foundation of the agriculture pro- remember, the President is going to are spending more money. Of course grams of this country by ending the veto this bill, as he should, and then they are spending more money. There authorization that exists in law that the real debate is going to begin. Then is 7 years of medical inflation that has has been there since 1938. the real discussion, the real negotia- to be covered. Medical inflation is Let me just say, the Republican plan tion will start. One of the key issues will be, should growing at three times the rate of nor- for agriculture is not a plan for Amer- we really be providing a tax cut when mal inflation. ican farmers. It is a plan for the we are adding $1.8 trillion to the debt In addition, there are 5 million new French farmer. It is a plan for the Ger- under this Republican plan? That is people who are going to be eligible for man farmer. It is a plan for the farmers what is going to happen. We have $5 Medicare during this 7-year period. So of every country with whom we com- trillion of debt now. Under this plan, of course they have to spend more. pete, because that is who is going to we are going to add another $1.8 tril- But the fact is, they are not spending benefit from the Republican farm plan. as much more as would be required in One of the ways we were able to have lion, which means every penny of this order to provide the same level of qual- a balanced budget that 39 Democrats tax cut is going to have to be borrowed ity and services as the current program voted for and to be able to restore some money. Does that make sense to anybody in provides. That is why they have $270 of the draconian spending cuts con- this country? We have to borrow billion of savings out of the Medicare tained in the Republican plan, was to money in order to give a tax cut? Give Program. But those savings are going eliminate tax cuts. We did not have a tax cut when we are adding $1.8 tril- to mean less quality, less service to any tax cuts. Because under the Repub- lion to the debt? I thought the idea was seniors than the services and quality of lican plan, disproportionately those to eliminate the growth of the debt, to service they receive now. tax reductions go to the wealthiest reduce the growth of the debt. Why do In addition, the draconian changes among us. that the Republicans have proposed for I just do not think it makes much we add to it? Mr. President, I think one of the Medicare are going to mean we are sense to say to somebody who is in the things we have to start focusing on is going to have rural hospitals all across top 1 percent of income earners in this what is happening to the distribution America forced to close. In my own country, you get a $10,000 tax reduc- of wealth in America, because what we State, the hospital association tells me tion, but if you are somebody who is have seen is a dramatic change. In 1969, 26 of the 30 rural hospitals are going to earning less than $30,000 a year who the top 1 percent of households in negative margins on their Medicare-el- qualifies for earned-income tax credit, America held about 20 percent of the igible patients. Of course, most of their you are going to get a tax increase. wealth. In 1979, the top 1 percent had patients are Medicare eligible. That Mr. President, 7.7 million families in increased their share of the wealth of means many of those hospitals will be America under the Republican plan are America to 30 percent. In 1989, the top forced to close. That is the harsh re- going to get a tax increase. Those who 1 percent of the income earners in this ality of what is being proposed here. are at the top of the income ladder, the Do we need to generate savings out of top 1 percent on average are going to country held nearly 40 percent of the Medicare in order to balance the budg- get a $10,000 tax cut. I do not know how wealth of this country. The other side accuses those of us on et over 7 years? Absolutely. But $270 they justify it. It is not my idea of tar- this side of wanting to redistribute the billion of reductions is too much. It is geted tax relief. But that is in this wealth. Let me just say, our friends on draconian. It is extreme. It will have plan. the other side of the aisle are the severe consequences. Finally, in the Fair Share plan that champions at wealth redistribution. The plan that 39 Democrats voted for 39 Senate Democrats voted for, we But their idea is to redistribute the restored $100 billion of the $270 billion asked the wealthiest among us to par- wealth upwards, upwards in our soci- of cuts in the Republican plan. In addi- ticipate in this battle to reduce the ety. The history of that kind of con- tion, we restored about $40 billion of budget deficit. We asked them to cur- centration of wealth is very clear. It the cuts to Medicaid. Let me just indi- tail the growth of the tax entitlements leads to political instability and it cate, we now have a new analysis from that they primarily benefit from. If we leads to trouble. We should not allow Consumers Union that indicates we are are going to reduce the growth of the that to occur. going to see 12 million people lose their spending entitlements, and we must, U.S. News, in this quote from David medical coverage because of the seri- then why not reduce the growth of the Gergen, says: ous reductions to the Medicaid Pro- tax entitlements, $4 trillion of tax enti- U.S. News & World Report reported last gram provided for in this Republican tlements? It is the biggest single pot of week . . . that the lowest 20 percent of the plan. money in the whole Federal budget. population would lose more income under Education? The plan that 39 Senate This chart shows entitlement spend- these spending cuts than the rest of the pop- Democrats voted for did not cut edu- ing from 1996 to 2002. Tax entitlements, ulation combined. At the other end, the cation. We did not have a dime of cuts $4 trillion—much bigger than the next highest 20 percent would gain more from the in education because we believe edu- biggest entitlement, Social Security. tax cuts than everyone else combined. cation is the future. If there is one That is nearly $3 trillion over the next He goes on to say: S 17258 CONGRESSIONAL RECORD — SENATE November 17, 1995 [N]o one disputes the basic contention that ter that is but 10 years away. The bal- What is the President’s response the burdens and benefits are lopsided. In a anced budget deals with all but one of about balancing the budget? First and nation divided dangerously into haves and these problems. It, obviously, by bal- foremost, he opposed the balanced have-nots, this is neither wise nor justified. ancing itself, quits adding debt and, budget amendment. Secondarily, he Mr. President, David Gergen has it therefore, lowers the interest pay- said he would balance the budget in 5 right, but he is not alone in this obser- ments. It begins to restructure Medic- years when he ran for President. That vation. aid and send it to the States for more is a long-forgotten promise. Then he I will share with you the final part of efficient management. It takes Medi- said he would send us a balanced budg- my presentation, the observation of care, which is destined to go bankrupt et in 10 years. And by everybody’s esti- Kevin Phillips, Republican political an- in but 6 years according to the Presi- mate, that budget never balances. And alyst, who said: dent’s own trustees, and restructures it when it was put to a vote in this Sen- If the budget deficit were really a national in a way to guarantee solvency for a ate, it failed 100 to nothing. How much crisis instead of a pretext for fiscal favor- quarter of a century. more discredited could a budget pro- itism and finagling, we’d be talking about What a relief that must be to all the posal be? shared sacrifice, with business, all industry beneficiaries of Medicare to understand Mr. President, I yield the floor with and the rich, people who have the big money, making the biggest sacrifice. Instead, it’s that these changes will give them more this conclusion. This whole battle is the senior citizens, it’s the poor, students, choices, but, more importantly, give about balancing the budget. This new and ordinary Americans who’ll see programs them a program that is solvent for a Congress wants to do it. The President they depend on gutted while business, fi- quarter of a century. does not. America should tell the nance, and the richest 1 or 2 percent, far It begins to deal with the subject of President now is the time to balance from making sacrifices, actually get new Federal retirement. And Social Secu- our budget. benefits, and tax reductions. rity is not dealt with directly, but I I yield the floor. The PRESIDING OFFICER. The would say indirectly it is, because it Mr. EXON. Mr. President, I yield 2 Chair advises the Senator that his time has engaged the Nation in the discus- minutes to the Senator from Rhode Is- has expired. sion of entitlements and their solvency land. Mr. CONRAD. I thank the Chair. I and their future. Mr. PELL. Last week, the National yield the floor. Mr. President, what are the benefits Goals Panel issued an extensive report Mr. ABRAHAM addressed the Chair. if the Nation seizes the responsibility on the progress American schools are The PRESIDING OFFICER. The dis- of managing its financial affairs? They making towards meeting the national tinguished Senator from Michigan is are just stunning. The average family goals. That report was a mixed one. We recognized. in America will see the interest pay- have made gains in areas such as math- Mr. ABRAHAM. Mr. President, I ment on its mortgage drop dramati- ematics achievement and making sure yield 7 minutes to the Senator from cally. It would save the average family that our children enter school ready to Georgia. which makes about $40,000 a year $1,000 learn. In other areas, such as reading Mr. COVERDELL. I thank the Sen- a year on their mortgage. It would save achievement and teacher preparation, ator from Michigan. the average family $180 a year on the we are only holding our own. And in Mr. President, if I might, I would like car payment interest payments. It will some areas, most notably safe and drug to pause for just a minute to comment save the average family another $200 a free schools, our problems appear to be on this historic moment and the oppor- year because of all the other debt that growing. tunity to vote for the first balanced they carry. If the average family has In my opinion, there is a clear con- budget concept in over three decades two children, it will have $1,000 re- clusion we can draw from this report. and to outline the predicament, or the moved of tax liability. This is not the time to either relax or situation, that has prompted these ac- The bottom line here, Mr. President, diminish the small, but critical Fed- tions on the part of the majority in the is that the average family in America eral role in education. Quite to the 104th Congress. will have $2,000 to $3,000 of new dispos- contrary, it is time to strengthen our The bipartisan Entitlement Commis- able income in their hands instead of commitment if we are to sustain the sion reported to the Congress and the Washington’s so that they can make gains we have made, move off of dead President earlier this year that, with- choices about education, housing, and center in other areas, and reverse the out change, without modification, the the health of their own families. decline in still others. totality of all U.S. resources will be ex- I have mentioned Ozzie and Harriet Most clearly, this is not the time to hausted by but five programs. Those more than once here. When Ozzie was have the largest education cut in our five programs are Social Security, the quintessential family, he sent 2 history. It is not the time to risk a 30- Medicare, Medicaid, Federal retire- cents of every dollar to Washington. If percent cut in Federal education spend- ment, and the interest on our debt. And he were here today, he would be send- ing over the next 7 years. It is not the by the year 2006, which is not long— ing 24 cents of every dollar to Washing- time to freeze the title I program and less than 10 years—there will not be ton. We have marginalized the average halt progress in basic skills achieve- enough resources to debate many of family because of the tax pressures and ment. It is not the time to cut spend- these programs we are responsible for tax burden. The most important thing ing on education reform. And, it is defi- in America. We will not be debating we can do is lighten that financial bur- nitely not the time to reduce our com- the School Lunch Program. There will den on those families, give them op- mitment to safe and drug free schools. not be one. tions, and give them the opportunity With respect to higher education, I Five programs take all U.S. revenues, to deal with the responsibility. believe deeply that we should not put and in but 10 years—Social Security, As I have listened to the debate, my our student aid programs at risk. Yet, Medicare, Medicaid, Federal retire- good friend, the Senator from Ne- that is precisely what the Republican ment, and just the interest on our braska, seems to feel that it is best for budget does. If we cut education by debt—and there is nothing left to fulfill Ozzie to send the money here, and for more than 30 percent over the next 7 the responsibilities of this great de- us to decide what is good or not for years, it is clear that every education mocracy to its own citizens and to the their family. Wrong. Wrong. They want program will be in harm’s way. We world. the opportunity to make the decisions have already engaged in a hard-fought The solution to avoid that predica- about what is best for their families. battle to protect students and their ment is to move to balanced budgets. Under this proposal, the families of families from cuts in the guaranteed All America knows this. It just seems 51 million American children, or 28 student loan program, and I am pleased that people in Washington are late ar- million tax-paying families, are eligi- that in large part, we have been suc- riving at the conclusion. ble for the $500 per child tax cut. Under cessful. These balanced budgets that have this proposal, 31⁄2 million families will While I had reservations about the been fashioned by the Budget Commit- have over $2.2 billion in tax relief. Mil- Direct Loan Program when it was tee and the Finance Committee are ab- lions of American families will be originally proposed, I am encouraged solutely mandatory to avert the disas- taken off the tax rolls altogether. by how well the program has operated November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17259 in its initial stages. Students are get- ment. The idea is that this will allow practice in education, and in this in- ting their loans more quickly and with additional time to bring defaulters into stance, I am afraid it has resulted in a less problems. The competition be- repayment, thus decreasing the total highly questionable provision. tween direct lending and the regular amount of claims for reimbursement. SUBMITTING CHANGES TO THE BUDGET guaranteed loan programs has also pro- There are at least two problems with RESOLUTION REVENUE ALLOCATIONS duced dramatic improvements in the this provision. First, it appears to as- Mr. DOMENICI. Mr. President, upon private sector program. Because of sume that these reserves are the prop- the submission of a conference report this, I believe it unwise to move back erty of the State guaranty agency and on a reconciliation bill, section 205(b) and place a 10 percent cap on direct not the Federal Government. If that is of House Concurrent Resolution 67 re- lending. This would mean that between the case, we may well be relinquishing quires the chairman of the Senate two-thirds and three-fourths of current any claim for almost $1 billion in out- Budget Committee to appropriately re- direct lending schools would be dropped standing and quite possibly excess re- vise the budgetary allocations and ag- from the program, and to my mind, serves that are Federal property and gregates to accommodate the revenue that would be most unfortunate. could be returned to the Federal Gov- reductions in the reconciliation bill I also fear that we will face difficult ernment to produce savings in the conference report. battles with respect to our other stu- guaranteed student loan program. Pursuant to section 205(b) of House dent aid programs, and that Pell If we assume they are not the prop- Concurrent Resolution 67, the 1996 grants, supplemental grants, Perkins erty of the State guaranty agency, budget resolution, I hereby submit re- loans, college work study, and the then we are simply permitting Federal visions to the first- and five-year reve- TRIO programs could well be placed on funds to be used to purchase defaulted nue aggregates contained in House the chopping block. loans guaranteed by the Federal Gov- Concurrent Resolution 67 for the pur- Mr. President, education is a capital ernment in the first place. If this is the pose of consideration of H.R. 2491, the investment in our future. The climb up case, we will be engaging in a shell Balanced Budget Act of 1995, and ask the economic ladder for American after game that produces illusory savings. unanimous consent that the revisions American is directly related to their Second, the provision allows de- be printed in the RECORD. level of educational achievement. faulted loans that are purchased with There being no objection, the mate- Every study we know shows a correla- these funds to be considered reserves. rial was ordered to be printed in the tion between an educational attain- This diminishes the required reserve RECORD, as follows: ment and an increase in income. If we ratio, also reduced in this legislation, pull back on education, we pull back on used to help determine whether or not the American people. That is not the an agency is strong and solvent. It 1996 1996–2000 direction in which we should be mov- would quite possibly allow an other- Current revenue aggre- ing. wise bankrupt agency to use defaulted gates ...... $1,042,500,000,000 $5,691,500,000,000 I agree wholeheartedly with Presi- loans as assets to meet the decreased Revised revenue aggre- gates ...... 1,036,780,000,000 5,543,726,000,000 dent Clinton when he says that, today, reserve ratio. To my mind, this is not we face both a budget deficit and an good public policy. The Congressional Budget Office has education deficit, and that both must Further, in my view, it is difficult, reviewed the conference report on H.R. be addressed. under any circumstance, to see how a 2491, and has certified that the enact- I favor reducing the budget deficit. I defaulted loan can be construed as an ment of the Balanced Budget Act of do not favor doing it on the backs of asset. This is potentially bad paper. We 1995 would produce a small budget sur- senior citizens, the unfortunate in our may never be able to collect the debt, plus in 2002. society, our children who need a good, and yet under this provision, Federal Mr. EXON. Mr. President, I believe solid general education, or our stu- law would decree that a defaulted loan, that the majority’s desire to include dents and families who are already a debt, is an asset. tax breaks in this bill has caused two hard-pressed to make ends meet in pay- Requiring agencies to purchase de- points of order to lie against this bill. ing for a college education. faulted loans with reserves that may or It has long been my belief that the In my view, one of the best ways we may not be their property is a roll of tax breaks have been the tail that has can reduce the budget deficit is the dice. They may well be bad invest- wagged this dog of a budget. They have through a strong and vibrant economy ments with minimal chance of collec- driven the majority to make extreme driven by a well-educated, well-trained tion. To say that they should be con- cuts in Medicare and education. work force. It is time that we increased sidered assets is, to my mind, very un- And their desire for tax breaks for our investment in education. It is not a wise. And, to take the chance that they the wealthy has also driven the major- time for retreat. also take reserves out of the reach of ity to jump through some pretty high Mr. President, it is time to calm the the Federal Government is equally im- procedural hoops. I hope to dem- shrill voices of partisanship that have prudent. onstrate over the next few minutes echoed through our Chamber. It is time Also, I am concerned that during the that the majority has abused the budg- to move away from the abyss of brink- 180-day period that State guaranty et reconciliation process and violated manship. It is time for all parties to agencies hold the defaulted loans, the the conditions of the budget resolution come together, and to fashion a budget Federal Government may well continue to pave the way for these misguided that enjoys wide bipartisan support. to pay special allowance and other in- tax breaks. For comity to be practiced. And most terest payments on these loans. I won- The budget resolution that created of all, it is time that we got on with der whether or not this produces an un- this budget reconciliation bill provided governing in a way that the American warranted windfall for these agencies that the majority could cut taxes if people can respect. by giving them income on a defaulted and only if two conditions were met: STUDENT LOAN PROVISION loan. One, they had to balance the budget in Mr. President, I want to call to my Finally, I would point out that had 2002. And, two, the reconciliation legis- colleagues’ attention and call into we had the opportunity to be involved lation had to ‘‘compl[y] with the sum question an important student loan in the budget reconciliation negotia- of the reconciliation directives for the provision included in the budget rec- tions between the House and Senate, period of fiscal years 1996 through 2002’’ onciliation conference agreement this would have been pointed out at the in the budget resolution. These two reached by the majority without the staff level. Unfortunately, for the first conditions are plainly spelled out in involvement of the minority. time in seven reconciliation and budg- section 205 of the budget resolution. I This provision with which I am con- et reduction conferences involving the ask unanimous consent that the full cerned requires State guaranty agen- guaranteed student loan program, the text of section 205 of the budget resolu- cies to use 50 percent of their reserves minority was not permitted to come to tion be printed in the RECORD. to purchase defaulted loans. Once pur- the table and make its case. This is an There being no objection, the mate- chased, the agency has 180 days before unfortunate departure from the bipar- rial was ordered to be printed in the it can submit claims for reimburse- tisanship that has been the traditional RECORD, as follows: S 17260 CONGRESSIONAL RECORD — SENATE November 17, 1995 SEC. 205. BUDGET SURPLUS ALLOWANCE. Senate shall submit appropriately revised Therefore, Mr. President, a point of (a) CBO CERTIFICATION OF LEGISLATIVE budgetary allocations and aggregates. order should lie against this conference SUBMISSIONS.— (3) EFFECT OF REVISED ALLOCATIONS AND AG- report because it violates section 311(a) (1) SUBMISSION OF LEGISLATION.—Upon the GREGATES.—Revised allocations and aggre- of the Congressional Budget Act of gates submitted under paragraph (2) shall be submission of legislative recommendations 1974. pursuant to section 105(a) and prior to the considered for the purposes of the Congres- submission of a conference report on legisla- sional Budget Act of 1974 as allocations and Mr. President, I ask unanimous con- tion reported pursuant to section 105, the aggregates contained in this resolution. sent that the full test of the CBO cost chairman of the Committee on the Budget of (c) CONTINGENCIES.—This section shall not estimate on this bill be printed in the the Senate and the House of Representatives apply unless the reconciliation legislation— RECORD. (as the case may be) shall submit such rec- (1) complies with the sum of the reconcili- There being no objection, the mate- ommendations to the Congressional Budget ation directives for the period of fiscal years rial was ordered to be printed in the Office. 1996 through 2002 provided in section 105(a); RECORD, as follows: and (2) BASIS OF ESTIMATES.—For the purposes U.S. CONGRESS, of preparing an estimate pursuant to this (2) would balance the total budget for fis- CONGRESSIONAL BUDGET OFFICE, subsection, the Congressional Budget Office cal year 2002 and the period of fiscal years Washington, DC, November 16, 1995. shall include the budgetary impact of all leg- 2002 through 2005. Hon. PETE V. DOMENICI, islation enacted to date, use the economic Mr. EXON. Section 205 of the budget Chairman, Committee on the Budget, U.S. Sen- and technical assumptions underlying this resolution gives the majority the au- ate, Washington, DC. resolution, and assume compliance with the DEAR MR. CHAIRMAN: The Congressional total discretionary spending levels assumed thority to lower the revenue floor in the budget resolution. Without section Budget Office has reviewed the conference in this resolution unless superseded by law. report on H.R. 2491, the Balanced Budget Act (3) ESTIMATE OF LEGISLATION.—The Con- 205, the majority would violate the rev- of 1995, and has projected the deficits that gressional Budget Office shall provide an es- enue floor in the budget resolution by would result if the bill is enacted. These pro- timate to the Chairman of the Budget Com- including tax cuts in this bill. jections use the economic and technical as- mittee of the Senate and the House of Rep- But the facts are that the conference sumptions underlying the budget resolution resentatives (as the case may be) and certify report before us today fails to meet the for fiscal year 1996 (H. Con. Res. 67), assume whether the legislative recommendations two conditions in section 205 for in- the level of discretionary spending indicated would balance the total budget by fiscal year in the budget resolution, and include 2002. cluding tax cuts. The budget resolution directed committees to come up with changes in outlays and revenues estimated (4) CERTIFICATION.—If the Congressional to result from the economic impact of bal- Budget Office certifies that such legislative $632 billion in deficit reduction over ancing the budget by fiscal year 2002 as esti- recommendations would balance the total the next 7 years in order to be allowed mated by CBO in its April 1995 report, An budget by fiscal year 2002, the Chairman to include tax cuts in this bill. The bill Analysis of the President’s Budgetary Pro- shall submit such certification in his respec- before us includes only $577 billion in posals for Fiscal Year 1996. On that basis, tive House. spending cuts, plus $3.7 billion in reve- CBO projects that enactment of the rec- (b) PROCEDURE IN THE SENATE.— nue increases in the jurisdiction of a onciliation legislation recommended by the (1) ADJUSTMENTS.—For the purposes of committee with instructions to in- conferees would produce a small budget sur- points of order under the Congressional crease revenues, for a net of $581 billion plus in 2002. The estimated federal spending, Budget Act of 1974 and this concurrent reso- revenues and deficits that would occur if the lution on the budget, the appropriate budg- in deficit reduction. proposal is enacted are shown in Table 1. The etary allocations and aggregates shall be re- That is $51 billion short of the resulting differences from CBO’s April 1995 vised to be consistent with the instructions amount committees were instructed to baseline are summarized in Table 2, which set forth in section 105(b) for legislation that achieve by the budget resolution. The includes the adjustments to the baseline as- reduces revenues by providing family tax re- bill is thus $51 billion short of the sumed by the budget resolution. The esti- lief and incentives to stimulate savings, in- amount necessary to allow the chair- mated savings from changes in direct spend- vestment, job creation, and economic man of the Budget Committee to lower ing and revenues that would result from en- growth. the budget resolution’s revenue floor to actment of each title of the bill are summa- (2) REVISED AGGREGATES.—Upon the report- rized in Table 3 and described in more detail ing of legislation pursuant to section 105(b) allow for the tax breaks. in an attachment. and again upon the submission of a con- As a consequence, the tax cuts cause Sincerely, ference report on such legislation, the Chair- this bill to violate the budget resolu- JUNE E. O’NEILL, man of the Committee on the Budget of the tion’s revenue floor. Director. TABLE 1.—CONFERENCE OUTLAYS, REVENUES, AND DEFICITS [By fiscal year, in billions of dollars]

1996 1997 1998 1999 2000 2001 2002

Outlays: Discretionary ...... 534 524 518 516 520 516 515

Mandatory: Medicare 1 ...... 196 210 217 226 248 267 289 Medicaid ...... 97 104 109 113 118 122 127 Other ...... 506 529 555 586 618 642 676

Subtotal ...... 799 843 881 925 984 1,031 1,093

Net interest ...... 257 262 261 262 260 254 249

Total outlays ...... 1,590 1,629 1,660 1,703 1,764 1,801 1,857

Revenues ...... 1,412 1,440 1,514 1,585 1,665 1,756 1,861 Deficit ...... 178 189 146 118 100 46 ¥4 1 Medicare benefit payments only. Excludes medicare premiums. 2 Notes.—The fiscal dividend expected to result from balancing the budget is reflected in these figures. Numbers may not add to totals because of rounding. 3 Source.—Congressional Budget Office.

TABLE 2.—CONFERENCE BUDGETARY CHANGES FROM CBO’S APRIL BASELINE [By fiscal year, in billions of dollars]

Total 1996 1997 1998 1999 2000 2001 2002 1996–2002

CBO April baseline deficit 1 ...... 210 230 232 266 299 316 349 * Baseline adjustments: 2 CPI rebenchmarking 3 ...... 0 0 0 ¥1 ¥3 ¥6 ¥9 ¥18 Other adjustments 4 ...... 1 1 1 2 2 1 1 10

Subtotal ...... 1 1 1 1 ¥1 ¥4 ¥8 ¥9 November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17261 TABLE 2.—CONFERENCE BUDGETARY CHANGES FROM CBO’S APRIL BASELINE—Continued [By fiscal year, in billions of dollars]

Total 1996 1997 1998 1999 2000 2001 2002 1996–2002

Policy changes: Outlays: Discretionary 5 Freeze 6 ...... ¥8 ¥9 ¥12 ¥35 ¥55 ¥75 ¥96 ¥289 Additional savings ...... ¥10 ¥21 ¥27 ¥24 ¥20 ¥24 ¥25 ¥151 Subtotal ...... ¥18 ¥29 ¥39 ¥59 ¥75 ¥99 ¥121 ¥440

Mandatory: Medicare ...... ¥7 ¥14 ¥27 ¥42 ¥49 ¥60 ¥71 ¥270 Medicaid ...... ¥2 ¥6 ¥13 ¥21 ¥30 ¥40 ¥50 ¥163 Other ...... ¥8 ¥18 ¥20 ¥24 ¥25 ¥24 ¥25 ¥144 Subtotal ...... ¥17 ¥38 ¥60 ¥87 ¥104 ¥125 ¥146 ¥577

Net interest ...... ¥1 ¥4 ¥8 ¥15 ¥25 ¥39 ¥58 ¥150 Total outlays ...... ¥36 ¥71 ¥107 ¥161 ¥203 ¥263 ¥325 ¥1,167

Revenues 7 ...... 6 36 34 35 36 38 30 215

Total policy changes ...... ¥31 ¥35 ¥73 ¥126 ¥167 ¥225 ¥295 ¥952

Adjustment for fiscal dividend 8 ...... ¥3 ¥7 ¥14 ¥23 ¥32 ¥41 ¥50 ¥170 Total adjustments and policy changes ...... ¥33 ¥41 ¥86 ¥148 ¥200 ¥271 ¥353 ¥1,131 Conference policy ...... 178 189 146 118 100 46 ¥4 * 1 Projections assume that discretionary spending is equal to the spending limits that are in effect through 1998 and will increase with inflation after 1998. 2 The budget resolution was based on CBO’s April 1995 baseline projections of mandatory spending and revenues, except for a limited number of adjustments. 3 The budget resolution baseline assumed that the 1998 rebenchmarking of the CPI by the Bureau of Labor Statistics will result in 0.2 percentage point reduction in the CPI compared with CBO’s December 1994 economic projections. 4 The budget resolution baseline made adjustments related to revised accounting of direct student loan costs, expiration of excise taxes dedicated to the Superfund trust fund as provided under current law, the effects of enacted legis- lation, and technical corrections. 5 Discretionary spending specified in the Concurrent Resolution on the Budget for Fiscal Year 1996 (H. Con. Res. 67). 6 Savings from Freezing 1996–2002 appropriations at the nominal level appropriated for 1995. 7 Revenue decreases are shown with a positive sign because they increase the deficit. 8 CBO has estimated that balancing the budget by 2002 would result in lower interest rates and slightly higher real growth that could lower federal interest payments and increase revenues by $170 billion over the fiscal year 1996– 2002 period. See Appendix B of CBO’s April 1995 report, ‘‘An Analysis of the President’s Budgetary Proposals for Fiscal Year 1996.’’ Notes.—*=not applicable; CPI=consumer price index. Source.—Congressional Budget Office.

TABLE 3.—RECONCILIATION CONFERENCE SAVINGS BY TITLE [By fiscal year, in billions of dollars]

1996 1997 1998 1999 2000 2001 2002 1996–2002

I—Agriculture: Outlays ...... ¥1.3 ¥1.6 ¥1.5 ¥1.5 ¥1.6 ¥2.5 ¥2.4 ¥12.3 II—Banking and Housing: Outlays ...... ¥5.2 ¥0.1 0.2 0.1 (1) (1) (1) ¥4.9 III—Communication and spectrum allocation: Outlays ...... ¥0.2 ¥1.8 ¥2.7 ¥3.6 ¥3.1 ¥2.7 ¥1.4 ¥15.3 IV—Education: Outlays ...... ¥1.0 ¥0.5 ¥0.5 ¥0.7 ¥0.8 ¥0.8 ¥0.8 ¥5.0 V—Energy and Natural Resources: Outlays ...... ¥0.6 ¥2.3 ¥0.4 ¥1.1 ¥0.7 ¥0.6 ¥0.5 ¥6.2 VI—Federal retirement: Outlays ...... ¥0.5 ¥1.1 ¥1.0 ¥1.6 ¥1.1 ¥1.1 ¥1.1 ¥7.5 Revenues 2 ...... ¥0.2 ¥0.4 ¥0.6 ¥0.6 ¥0.6 ¥0.6 ¥0.7 ¥3.7 Deficit ...... ¥0.7 ¥1.5 ¥1.6 ¥2.2 ¥1.7 ¥1.7 ¥1.7 ¥11.1 VII—Medicaid: Outlays ...... ¥2.2 ¥5.7 ¥13.4 ¥21.5 ¥30.0 ¥40.3 ¥50.4 ¥163.4 VIII—Medicare: Outlays ...... ¥6.8 ¥14.3 ¥27.2 ¥42.0 ¥49.0 ¥59.8 ¥70.9 ¥270.0 IX—Transportation: Outlays ...... ¥0.1 ¥0.2 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.8 X—Veterans: Outlays ...... ¥0.3 ¥0.4 ¥0.5 ¥1.3 ¥1.4 ¥1.3 ¥1.5 ¥6.7 XI—Revenues: Outlays ...... 0.0 0.0 0.0 (1) (1) (1) ¥0.1 ¥0.1 Revenues 2 ...... 5.9 37.3 35.6 37.4 38.6 39.9 32.4 227.1 Deficit ...... 5.9 37.3 35.6 37.4 38.6 39.8 32.4 227.0 XII—Teaching hospitals, asset sales, and welfare: Outlays ...... 0.6 ¥10.3 ¥13.1 ¥14.1 ¥15.7 ¥15.4 ¥17.2 ¥85.1 Revenues 2 ...... ¥0.1 ¥1.2 ¥1.3 ¥1.4 ¥1.5 ¥1.6 ¥1.8 ¥8.9 Deficit ...... 0.5 ¥11.5 ¥14.4 ¥15.4 ¥17.2 ¥17.0 ¥19.0 ¥94.0 Interactive effects: Outlays ...... 0.0 0.0 0.0 (1) (1) (1) 0.1 0.1

Total Outlays ...... ¥17.4 ¥38.1 ¥60.1 ¥87.2 ¥103.5 ¥124.6 ¥146.2 ¥577.2 Total Revenues 1 ...... 5.7 35.7 33.7 35.5 36.5 37.6 29.9 214.5 Total Deficit ...... ¥11.7 ¥2.4 ¥26.4 ¥51.8 ¥67.0 ¥87.0 ¥116.3 ¥362.6 1 Less than $50 million. 2 Revenue increases are shown with a negative sign because they reduce the deficit. Sources.—Congressional Budget Office; Joint Committee on Taxation.

ATTACHMENT DIRECT SPENDING AND REVENUE EFFECTS BY TITLE OF THE CONFERENCE REPORT ON H.R. 2491, THE BALANCED BUDGET ACT OF 1995, CON- GRESSIONAL BUDGET OFFICE, NOVEMBER 16, 1995 ESTIMATED BUDGETARY EFFECTS OF TITLE I: AGRICULTURE AND RELATED PROVISIONS [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1990 2000 2001 2002 total

Changes in direct spending Freedom to Far contracts in lieu of deficiency payments: Estimated budget authority ...... ¥874 ¥804 ¥804 ¥937 ¥1,194 ¥1,998 ¥1,989 ¥8,600 Estimated outlays ...... ¥874 ¥804 ¥804 ¥937 ¥1,194 ¥1,998 ¥1,989 ¥8,600 Cap crop price-support loan rates: Estimated budget authority ...... ¥16 ¥85 35 ¥70 ¥49 ¥55 ¥38 ¥108 Estimated outlays ...... ¥16 ¥85 35 ¥70 ¥49 ¥55 ¥38 ¥108 Cap 7-year cotton step-2 payments at $701 million: Estimated budget authority ...... 1 2 2 2 ¥69 ¥116 ¥178 Estimated outlays ...... 1 2 2 2 ¥69 ¥116 ¥178 End cotton 8-month loan extension: Estimated budget authority ...... ¥55 ¥5 ¥5 ¥5 ¥2 0 ¥72 Estimated outlays ...... ¥55 ¥5 ¥5 ¥5 ¥2 0 ¥72 S 17262 CONGRESSIONAL RECORD — SENATE November 17, 1995 ESTIMATED BUDGETARY EFFECTS OF TITLE I: AGRICULTURE AND RELATED PROVISIONS—Continued [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1990 2000 2001 2002 total

$40,000 payment limit per ‘‘person’’: Estimated budget authority ...... ¥21 ¥41 ¥45 ¥43 ¥39 ¥32 ¥31 ¥252 Estimated outlays ...... ¥21 ¥41 ¥45 ¥43 ¥39 ¥32 ¥31 ¥252 Reform peanut program: Estimated budget authority ...... ¥95 ¥69 ¥69 ¥67 ¥68 ¥66 ¥434 Estimated outlays ...... ¥95 ¥69 ¥69 ¥67 ¥68 ¥66 ¥434 Reform sugar program (increased assessments): Estimated budget authority ...... ¥8 ¥8 ¥8 ¥9 ¥9 ¥9 ¥51 Estimated outlays ...... ¥8 ¥8 ¥8 ¥9 ¥9 ¥9 ¥51 End emergency feed assistance programs: Estimated budget authority ...... ¥60 ¥80 ¥80 ¥80 ¥80 ¥80 ¥80 ¥540 Estimated outlays ...... ¥60 ¥80 ¥80 ¥80 ¥80 ¥80 ¥80 ¥540 End honey program: Estimated budget authority ...... ¥1 ¥2 ...... ¥3 Estimated outlays ...... ¥1 ¥2 ...... ¥3 End farmer-owned reserve: Estimated budget authority ...... ¥18 ¥18 ¥18 ¥18 ¥18 ¥18 ¥108 Estimated outlays ...... ¥18 ¥18 ¥18 ¥18 ¥18 ¥18 ¥108 Livestock Environmental Assistance Program: Estimated budget authority ...... 100 100 100 100 100 100 100 700 Estimated outlays ...... 48 88 91 94 96 98 99 614 Limit CRP to 36.4 million acres: Estimated budget authority ...... ¥41 ¥118 ¥109 ¥102 ¥100 ¥99 ¥569 Estimated outlays ...... ¥41 ¥118 ¥109 ¥102 ¥100 ¥99 ¥569 Cap WRP acreage and limit easements: Estimated budget authority ...... ¥24 ¥66 ¥66 ¥66 ¥66 54 54 ¥180 Estimated outlays ...... ¥3 ¥47 ¥90 ¥94 ¥92 ¥74 13 ¥387 Reduce Market Promotion Program spending: Estimated budget authority ...... ¥1 ¥8 ¥10 ¥10 ¥10 ¥10 ¥10 ¥59 Estimated outlays ...... ¥1 ¥8 ¥10 ¥10 ¥10 ¥10 ¥10 ¥59 Cap Export Enhancement Program spending: Estimated budget authority ...... ¥329 ¥532 ¥281 ¥130 0 0 0 ¥1,272 Estimated outlays ...... ¥329 ¥532 ¥281 ¥130 0 0 0 ¥1,272 End mandatory crop insurance catastrophic coverage: Estimated budget authority ...... ¥27 ¥27 ¥28 ¥28 ¥29 ¥29 ¥29 ¥197 Estimated outlays ...... ¥10 ¥27 ¥28 ¥28 ¥29 ¥29 ¥29 ¥180 Provide disaster assistance for seed crops: Estimated budget authority ...... 7 7 7 7 7 7 7 49 Estimated outlays ...... 3 7 7 7 7 7 7 45 Direct access to Agriculture Quarantine Inspection Fund: Estimated budget authority ...... 8 9 10 10 13 17 21 88 Estimated outlays ...... 8 9 10 10 13 17 21 88 Increase CCC commodity loan interest rate: Estimated budget authority ...... ¥20 ¥40 ¥40 ¥40 ¥40 ¥40 ¥40 ¥260 Estimated outlays ...... ¥20 ¥40 ¥40 ¥40 ¥40 ¥40 ¥40 ¥260 Total changes in direct spending: Estimated budget authority ...... ¥1,257 ¥1,613 ¥1,418 ¥1,495 ¥1,588 ¥2,332 ¥2,343 ¥12,046 Estimated outlays ...... ¥1,275 ¥1,606 ¥1,451 ¥1,529 ¥1,618 ¥2,462 ¥2,385 ¥12,326

ESTIMATED BUDGETARY EFFECTS OF TITLE II: BANKING, HOUSING AND RELATED PROGRAMS [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Changes in direct spending Deposit insurance funds: Estimated budget authority ...... Estimated outlays ...... ¥5,000 400 800 800 700 700 700 ¥900 Limit staff of RTC oversight board: Estimated budget authority ...... Estimated outlays ...... (1) ...... (1) FHA single-family assignment program: Estimated budget authority ...... ¥119 ¥216 ¥234 ¥268 ¥308 ¥317 ¥317 ¥1,779 Estimated outlays ...... ¥119 ¥216 ¥234 ¥268 ¥308 ¥317 ¥317 ¥1,779 Assisted housing rent adjustments for operating costs: Estimated budget authority ...... Estimated outlays ...... ¥18 ¥66 ¥126 ¥177 ¥210 ¥229 ¥249 ¥1,075 One-percent reduction in assisted housing rent adjustments: 2 Estimated budget authority ...... Estimated outlays ...... ¥42 ¥170 ¥216 ¥211 ¥198 ¥182 ¥170 ¥1,189 Total estimated changes in direct spending: Estimated budget authority ...... ¥119 ¥216 ¥234 ¥268 ¥308 ¥317 ¥317 ¥1,779 Estimated outlays ...... ¥5,179 ¥52 224 144 ¥16 ¥28 ¥36 ¥4,943 Changes in spending subject to appropriations Rent adjustments for section 8 housing: Estimated authorization level ...... 30 50 85 90 95 120 130 600 Estimated outlays ...... 1 13 37 64 83 102 118 418

1 Less than $500,000. 2 If the VA/HUD appropriations bill is enacted before this provision, and if it includes a similar provision applying only to fiscal year 1996, the reconciliation provision would produce no savings in 1996 and lower savings in subsequent years.

ESTIMATED BUDGETARY EFFECTS OF TITLE III: COMMUNICATIONS AND SPECTRUM ALLOCATION PROVISIONS [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Changes in direct spending Spectrum auctions: Estimated budget authority ...... ¥150 ¥1,800 ¥2,650 ¥3,550 ¥3,100 ¥2,650 ¥1,400 ¥15,300 Estimated outlays ...... ¥150 ¥1,800 ¥2,650 ¥3,550 ¥3,100 ¥2,650 ¥1,400 ¥15,300 November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17263 ESTIMATED BUDGETARY EFFECTS OF THE CONFERENCE AGREEMENT TITLE IV, EDUCATION AND RELATED PROVISIONS [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Asset sale receipts 1 Sale of Connie Lee stock: Estimated budget authority ...... ¥7 ...... ¥7 Estimated outlays ...... ¥7 ...... ¥7 Changes in direct spending Changes in student loans: Estimated budget authority ...... ¥1,144 ¥429 ¥550 ¥763 ¥756 ¥791 ¥831 ¥5,264 Estimated outlays ...... ¥955 ¥464 ¥496 ¥678 ¥754 ¥784 ¥817 ¥4,948 Total: Mandatory spending (asset sales plus direct spending changes): Estimated budget authority ...... ¥1,151 ¥429 ¥550 ¥763 ¥756 ¥791 ¥831 ¥5,271 Estimated outlays ...... ¥962 ¥464 ¥496 ¥678 ¥754 ¥784 ¥817 ¥4,955 1 Under the 1996 budget resolution, proceeds from asset sales are counted in budget totals for purposes of Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in determining compliance with the discretionary spending limits or pay-as-you-go requirement.

ESTIMATED BUDGETARY EFFECTS OF TITLE V: ENERGY AND NATURAL RESOURCES [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Asset sale receipts 1 U.S. Enrichment Corporation: Estimated budget authority ...... ¥500 ¥1,100 ¥21 ¥54 ¥55 ¥46 ¥47 ¥1,823 Estimated outlays ...... ¥500 ¥1,100 ¥21 ¥54 ¥55 ¥46 ¥47 ¥1,823 Sale of DOE assets: Estimated budget authority ...... ¥20 ¥15 ¥15 ¥15 ¥15 ¥15 ¥15 ¥110 Estimated outlays ...... ¥20 ¥15 ¥15 ¥15 ¥15 ¥15 ¥15 ¥110 Sale of Weeks Island oil:2 Estimated budget authority ...... ¥100 ¥188 ¥182 ...... ¥470 Estimated outlays ...... ¥100 ¥188 ¥182 ...... ¥470 California land sale: Estimated budget authority ...... ¥1 ...... ¥1 Estimated outlays ...... ¥1 ...... ¥1 Sale of helium reserves: Estimated budget authority ...... ¥3 ¥8 ¥9 ¥9 ¥9 ¥9 ¥47 Estimated outlays ...... ¥3 ¥8 ¥9 ¥9 ¥9 ¥9 ¥47 Arctic National Wildlife Refuge: Estimated budget authority ...... ¥1,601 ¥1 ¥1,001 ¥1 ¥1 ¥1 ¥2,606 Estimated outlays ...... ¥1,601 ¥1 ¥1,001 ¥1 ¥1 ¥1 ¥2,606 Collbran Project: Estimated budget authority ...... ¥13 ...... ¥13 Estimated outlays ...... ¥13 ...... ¥13 Sly Park: Estimated budget authority ...... ¥4 ...... ¥4 Estimated outlays ...... ¥4 ...... ¥4 Sale of DOI assets: Estimated budget authority ...... ¥1 ¥3 ¥3 ...... ¥7 Estimated outlays ...... ¥1 ¥3 ¥3 ...... ¥7 Alaska PMA sale:3 4 Estimated budget authority ...... ¥77 ...... ¥77 Estimated outlays ...... ¥77 ...... ¥77 Outer continental shelf:4 Estimated budget authority ...... ¥15 ¥25 ¥20 ¥20 ¥20 ¥20 ¥20 ¥140 Estimated outlays ...... ¥15 ¥25 ¥20 ¥20 ¥20 ¥20 ¥20 ¥140 Subtotal, asset sales: Estimated budget authority ...... ¥714 ¥2,939 ¥250 ¥1,099 ¥113 ¥91 ¥92 ¥5,298 Estimated outlays ...... ¥714 ¥2,939 ¥250 ¥1,099 ¥113 ¥91 ¥92 ¥5,298 Changes in direct spending NRC fees: Estimated budget authority ...... ¥330 ¥330 ¥330 ¥330 ¥1,320 Estimated outlays ...... ¥330 ¥330 ¥330 ¥330 ¥1,320 U.S. Enrichment Corporation: Estimated budget authority ...... 0 Estimated outlays ...... 306 8 ¥10 ¥88 ¥159 ¥80 ¥20 ¥3 Lease of excess SPR capacity: Estimated budget authority ...... ¥24 ¥37 ¥64 ¥49 ¥67 ¥241 Estimated outlays ...... ¥24 ¥37 ¥64 ¥59 ¥71 ¥255 Arctic National Wildlife Refuge: Estimated budget authority ...... 800 5 560 6 6 6 1,403 Estimated outlays ...... 800 1 502 12 43 28 1,386 Prepayment of construction charges: Estimated budget authority ...... ¥166 ¥17 4 29 29 29 29 ¥63 Estimated outlays ...... ¥166 ¥17 4 29 29 29 29 ¥63 Hetch Hetchy fees: Estimated budget authority ...... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥14 Estimated outlays ...... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥14 Collbran Project: Estimated budget authority ...... 1 3 2 6 Estimated outlays ...... 1 3 2 6 Sly Park: Estimated budget authority ...... (5) (5) (5) (5) (5) 1 Estimated outlays ...... (5) (5) (5) (5) (5) 1 Central Utah prepayment: Estimated budget authority ...... ¥67 ¥127 2 2 ¥31 2 ¥219 Estimated outlays ...... ¥67 ¥127 2 2 ¥31 2 ¥219 Federal oil and gas royalties: Estimated budget authority ...... ¥6 ¥12 ¥8 ¥7 ¥7 ¥6 ¥5 ¥51 Estimated outlays ...... ¥6 ¥12 ¥8 ¥7 ¥7 ¥6 ¥5 ¥51 Hardrock mining: Estimated budget authority ...... 2 1 1 ¥40 ¥40 ¥40 ¥41 ¥157 Estimated outlays ...... 2 1 1 ¥40 ¥40 ¥40 ¥41 ¥157 Bonneville Power refinancing: Estimated budget authority ...... ¥16 ¥14 ¥15 ¥13 ¥12 ¥25 ¥25 ¥120 Estimated outlays ...... ¥16 ¥14 ¥15 ¥13 ¥12 ¥25 ¥25 ¥120 Alaska PMA sale:3 4 Estimated budget authority ...... 4 11 11 11 11 11 11 70 Estimated outlays ...... 4 11 11 11 11 11 11 70 Outer continental shelf:4 Estimated budget authority ...... 3 7 10 Estimated outlays ...... 3 7 10 Exports of Alaskan oil:4 Estimated budget authority ...... ¥5 ¥14 ¥10 ¥7 ¥6 ...... ¥42 S 17264 CONGRESSIONAL RECORD — SENATE November 17, 1995 ESTIMATED BUDGETARY EFFECTS OF TITLE V: ENERGY AND NATURAL RESOURCES—Continued [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Estimated outlays ...... ¥5 ¥14 ¥10 ¥7 ¥6 ...... ¥42 Ski area permit charges: Estimated budget authority ...... e ¥1 ¥1 e e e e ¥1 Estimated outlays ...... e ¥1 ¥1 e e e e ¥1 Park fees: Estimated budget authority ...... ¥7 ¥11 ¥11 ¥8 ¥12 ¥7 ¥13 ¥69 Estimated outlays ...... ¥7 ¥13 ¥14 ¥11 ¥14 ¥10 ¥14 ¥83 Concession reform: Estimated budget authority ...... ¥5 ¥11 ¥16 ¥22 ¥28 ¥82 Estimated outlays ...... ¥5 ¥11 ¥16 ¥22 ¥28 ¥82 Subtotal: Direct spending: Estimated budget authority ...... ¥196 674 ¥182 167 ¥440 ¥460 ¥454 ¥889 Estimated outlays ...... 110 680 ¥199 ¥2 ¥595 ¥516 ¥417 ¥937

Total: Mandatory spending (asset sales plus direct spending changes): Estimated budget authority ...... ¥910 ¥2,265 ¥432 ¥932 ¥553 ¥551 ¥546 ¥6,187 Estimated outlays ...... ¥604 ¥2,259 ¥449 ¥1,101 ¥708 ¥607 ¥509 ¥6,235 1 Under the 1996 budget resolution, proceeds from asset sales are counted in budget totals for purposes of Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in determining compliance with the discretionary spending limits or pay-as-you-go requirement. 2 This estimate for sale of oil from the Weeks Island facility reflects changes to current law; but if the appropriations bill for interior and Related Agencies is enacted prior to enactment of this title, the savings for this title would be reduced by $100 million. 3 The sale of the Alaska PMA is contingent upon provisions in Title XI providing tax-exempt financing for certain projects. 4 Similar provisions regarding sale of the Alaska PMA, OCS leasing, and exports of Alaskan oil are also contained in S. 395, which was recently cleared by the Congress. 5 Less than $500,000. Note.—This title would also affect spending that is subject to appropriations action, but CBO has not completed an estimate of the potential changes in discretionary spending that might result from enacting this title.

ESTIMATED BUDGETARY EFFECTS OF TITLE VI: FEDERAL RETIREMENT AND RELATED PROVISIONS [In millions of dollars, by fiscal year]

1996–2002 1996 1997 1998 1999 2000 2001 2002 total

Asset sale receipts 1 Sale of Governors Island NY: Estimated budget authority ...... ¥500 ...... ¥500 Estimated outlays ...... ¥500 ...... ¥500 Sale of Union Station air rights: Estimated budget authority ...... ¥40 ...... ¥40 Estimated outlays ...... ¥40 ...... ¥40 Repeal of title V of McKinney Act: Estimated budget authority ...... ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥21 Estimated outlays ...... ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥21 Changes in direct spending 2 Civilian retirement COLA delay: Estimated budget authority ...... 0 ¥337 ¥353 ¥347 ¥362 ¥380 ¥396 ¥2175 Estimated outlays ...... 0 ¥337 ¥353 ¥347 ¥362 ¥380 ¥396 ¥2175 Agency contributions for civilian retirement: Estimated budget authority ...... ¥513 ¥667 ¥642 ¥614 ¥560 ¥539 ¥513 ¥4046 Estimated outlays ...... ¥513 ¥667 ¥642 ¥614 ¥560 ¥539 ¥513 ¥4046 Congressional retirement benefits: Estimated budget authority ...... ¥* ¥* ¥1 ¥1 ¥2 ¥2 ¥3 ¥9 Estimated outlays ...... ¥* ¥* ¥1 ¥1 ¥2 ¥2 ¥3 ¥9 USPS transitional appropriations: Estimated budget authority ...... 0 ¥9 ¥37 ¥37 ¥36 ¥36 ¥36 ¥191 Estimated outlays ...... 0 ¥9 ¥37 ¥37 ¥36 ¥36 ¥36 ¥191 PTO surcharge fees: Estimated budget authority ...... ¥119 ¥119 ¥119 ¥119 ¥476 Estimated outlays ...... ¥119 ¥119 ¥119 ¥119 ¥476 Total mandatory spending (asset sales plus direct spending): Estimated budget authority ...... ¥516 ¥1056 ¥1036 ¥1621 ¥1082 ¥1079 ¥1070 ¥7458 Estimated outlays ...... ¥516 ¥1056 ¥1036 ¥1621 ¥1082 ¥1079 ¥1070 ¥7458 Revenues Employee contributions for civilian retirement: Estimated revenues ...... 204 409 551 597 612 640 670 3681 Authorizations of appropriations Agency contributions for civilian retirement: Estimated authorization level ...... 529 688 662 632 577 555 529 4172 Estimated outlays ...... 513 667 642 614 560 539 513 4046 Repeal of title V of McKinney Act: Estimated authorization level ...... 0 3 3 3 3 3 3 18 Estimated outlays ...... 0 1 3 3 3 3 3 16 Total authorizations of appropriations: Estimated authorization level ...... 529 691 665 635 580 558 532 4190 Estimated outlays ...... 513 668 645 617 563 542 516 4062 1 Under the 1996 budget resolution, proceeds from asset sales are counted in budget totals for purposes of Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in determining compliance with the discretionary spending limits or pay-as-you-go requirements. 2 Civilian retirement includes the Civil Service Retirement System, the Federal Employees Retirement System, the Foreign Service Retirement and Disability System, and the Foreign Service Pension System. 3 Less than $500,000. Note.—Components may not add to totals due to rounding.

TITLE VII—MEDICAID [By fiscal year, in billions of dollars]

7-year 1996 1997 1998 1999 2000 2001 2002 total

CBO Baseline ...... 99.292 110.021 122.060 134.830 148.116 162.631 177.805 ......

Proposed law: Outlays from Title XIX ...... 24.624 0 0 0 0 0 0 ...... Section 2121(a)—Transitional Correction ...... 0 0.200 0 0 0 0 0 ...... Section 2121(b)—Pool Amounts ...... 71.762 103.234 107.908 112.644 117.360 122.284 127.418 ...... Section 2121(c)—Special Rule ...... 0.090 0.233 0.090 0 0 0 0 ...... Section 2121(f)—Supplemental Allotment ...... 0.627 0.673 0.702 0.733 0.764 0 0 ...... Total Outlays ...... 97.103 104.340 108.700 113.377 118.124 122.284 127.418 ...... November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17265 TITLE VII—MEDICAID—Continued [By fiscal year, in billions of dollars]

7-year 1996 1997 1998 1999 2000 2001 2002 total

Reductions in Outlays ...... ¥2.189 ¥5.681 ¥13.360 ¥21.453 ¥29.992 ¥40.347 ¥50.387 ¥163.409 Note: Assumes enactment date of November 15, 1995.

TITLE VIII—MEDICARE [By fiscal year, in billions of dollars]

1996 1997 1998 1999 2000 2001 2002 Total

CHANGE IN DIRECT SPENDING Subtitle A—MedicarePlus Program 1 ...... ¥0.1 ¥0.5 ¥1.2 ¥2.6 ¥5.0 ¥7.3 ¥10.2 ¥26.9

Subtitle B—Preventing Fraud and Abuse: Payment Safeguards and enforcement ...... 0.3 ¥0.2 ¥0.5 ¥0.8 ¥0.9 ¥0.7 ¥0.8 ¥3.5 New and increased Civil Monetary Penalties ...... ¥0.0 ¥0.0 ¥0.0 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.4 Additional Exclusion Authorities ...... ¥0.0 ¥0.0 ¥0.0 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.3 Criminal Provisions ...... ¥0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.7 Other Items ...... ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.1

Subtotal, Subtitle B ...... 0.3 ¥0.2 ¥0.6 ¥0.8 ¥0.8 ¥0.7 ¥0.7 ¥3.5

Subtitle C—Regulatory Relief: Physician Ownership referral ...... 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.3

Subtotal, Subtitle C ...... 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.3

Subtitle D—Graduate Medical Education: Indirect Medical Education Payments ...... ¥0.4 ¥0.8 ¥0.8 ¥1.1 ¥1.3 ¥1.5 ¥1.7 ¥7.6 Direct Medical Education ...... 0.0 ¥0.1 ¥0.1 ¥0.1 ¥0.2 ¥0.3 ¥0.4 ¥1.4

Subtotal, Subtitle D ...... ¥0.4 ¥0.9 ¥1.0 ¥1.2 ¥1.5 ¥1.9 ¥2.1 ¥9.0

Subtitle E—Medicare Part A: Chapter 1—General provisions Relating to Part A PPS MB–2.5 in FY 96, ¥2.0 thereafter ...... ¥0.2 ¥1.1 ¥2.4 ¥3.8 ¥5.4 ¥7.2 ¥9.0 ¥29.1 PPS Exempt Update Reduction ...... ¥0.0 ¥0.1 ¥0.2 ¥0.3 ¥0.4 ¥0.5 ¥0.6 ¥2.0 Targets for Rehabilitation and LTC Hospitals ...... ¥0.0 ¥0.1 ¥0.2 ¥0.4 ¥0.5 ¥0.7 ¥0.7 ¥2.7 Rebasing for Certain LTC Hospitals ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 LTC Hospitals Within Other Hospitals ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 Reduce nonPPS capital by 10% ...... ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.2 ¥0.2 ¥0.2 ¥0.9 Reduce DSH payments ...... ¥0.1 ¥0.3 ¥0.6 ¥0.9 ¥1.1 ¥1.2 ¥1.2 ¥5.4 Reduce PPS Capital by 15% ...... ¥1.0 ¥1.2 ¥1.3 ¥1.3 ¥1.4 ¥1.4 ¥1.5 ¥9.0 Rebase PPS Capital Payment Rates ...... ¥0.3 ¥0.4 ¥0.4 ¥0.4 ¥0.4 ¥0.4 ¥0.4 ¥2.7 Reduce Payments for Hospital Bad Debt ...... ¥0.1 ¥0.1 ¥0.2 ¥0.2 ¥0.2 ¥0.2 ¥0.2 ¥1.1 Preferential Update for Certain MDH Hospitals ...... 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.6 Chapter 2—Skilled Nursing Facilities: Skilled Nursing Facilities ...... ¥0.2 ¥0.6 ¥1.1 ¥1.6 ¥1.9 ¥2.2 ¥2.4 ¥10.0 Chapter 3—Other Provisions Related to Part A: Hemophilia Pass-Through Extension ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Hospice ...... ¥0.0 ¥0.0 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.1 ¥0.5

Subtotal, Subtitle E ...... ¥2.0 ¥3.8 ¥6.2 ¥8.9 ¥11.4 ¥13.9 ¥16.2 ¥62.5

Subtitle F—Medicare Part B: Part 1—Payment Reforms Reduce payments for physicians’s services ...... ¥0.4 ¥1.3 ¥2.3 ¥3.2 ¥4.1 ¥5.1 ¥6.2 ¥22.6 Eliminate formula driven overpayment ...... ¥0.9 ¥1.2 ¥1.5 ¥2.0 ¥2.5 ¥3.3 ¥4.5 ¥15.9 Reduce updates for durable medical equipment ...... ¥0.1 ¥0.3 ¥0.4 ¥0.6 ¥0.7 ¥0.9 ¥1.1 ¥4.1 Reduce updates for clinical labs ...... ¥0.1 ¥0.4 ¥0.7 ¥0.9 ¥1.1 ¥1.3 ¥1.6 ¥6.0 Extend outpatient capital reduction ...... 0.0 0.0 0.0 ¥0.1 ¥0.1 ¥0.2 ¥0.2 ¥0.6 Extend outpatient payment reduction ...... 0.0 0.0 0.0 ¥0.3 ¥0.3 ¥0.4 ¥0.4 ¥1.4 Freeze payments for ASC services ...... ¥0.0 ¥0.1 ¥0.1 ¥0.2 ¥0.2 ¥0.3 ¥0.4 ¥1.3 Anesthesia Payment Allocation ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Separate physician fee schedule for Wisconsin ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Limit payments for ambulance services ...... ¥0.0 ¥0.0 ¥0.1 ¥0.1 ¥0.1 ¥0.2 ¥0.3 ¥0.8 Direct payment to PAs and NPs 2 ...... 0.0 0.0 0.0 0.0 0.1 0.1 0.1 ¥0.3 Payments to primary care MDs in shortage areas 2 ...... 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.5 Part 2—Part B Premium Increase Part B premium ...... ¥3.3 ¥4.3 ¥4.1 ¥5.2 ¥7.9 ¥10.4 ¥13.5 ¥48.6 Income-related reduction in medicare subsidy ...... 0.0 ¥0.4 ¥0.9 ¥1.3 ¥1.7 ¥2.0 ¥2.3 ¥8.5

Subtotal, Subtitle F ...... ¥4.7 ¥7.7 ¥9.9 ¥13.7 ¥18.7 ¥24.0 ¥30.3 ¥109.1

Subtitle G—Medicare Parts A and B: Payment for home health services ...... 0.0 ¥1.3 ¥2.3 ¥2.7 ¥3.1 ¥3.6 ¥4.0 ¥17.0 Medicare second payer improvements ...... 0.0 0.0 0.0 ¥1.3 ¥1.5 ¥1.7 ¥1.9 ¥6.5 Coverage of Oral Breast Cancer Drug ...... 0.1 0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.0 ¥0.1

Subtotal, Subtitle G ...... 0.1 ¥1.3 ¥2.3 ¥4.1 ¥4.7 ¥5.3 ¥6.0 ¥23.5

Subtitle H—Rural Areas: Medicare-Dependent payment Extension ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 Critical Access Hospitals ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.3 Establish REACH Program ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 Classification of Rural Referral Centers ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Expand Access to Nurse Aide Training 3 ...... 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Subtotal, Subtitle H ...... 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.7

Change in net Mandatory Medicare Outlays before Failsafe ...... ¥6.8 ¥14.3 ¥21.1 ¥31.2 ¥42.0 ¥52.8 ¥65.3 ¥233.5 Additional Outlay Reductions Required by Failsafe, Net of Premiums ...... 0.0 0.0 ¥6.2 ¥10.8 ¥7.1 ¥7.0 ¥5.6 ¥36.6

Total, Medicare ...... ¥6.8 ¥14.3 ¥27.2 ¥42.0 ¥49.0 ¥59.8 ¥70.9 ¥270.0

MEMORANDUM: Monthly Part B premium (By calendar year): Estimated premium under proposal ...... $53.70 $57.00 $59.30 64.10 $73.10 $80.10 $88.90 ...... Estimated premium under current law ...... $42.50 $48.20 $53.20 $55.00 $56.80 $58.60 $60.50 ...... 1 Estimate includes medical savings accounts provision. 2 These items are included in Subtitle H (Rural Areas). 3 CBO estimates that this provision would cost less than $50 million over seven years. Notes.—Details may not sum to totals because of rounding. The estimates assume an enactment date of November 15, 1995. The estimates do not incorporate changes in discretionary spending for administration. S 17266 CONGRESSIONAL RECORD — SENATE November 17, 1995 ESTIMATED BUDGETARY EFFECTS OF TITLE IX: TRANSPORTATION AND RELATED PROVISIONS [Millions of Dollars, by Fiscal Year]

1996– 1996 1997 1998 1999 2000 2001 2002 2002 Total

CHANGES IN DIRECT SPENDING Highway Minimum Allocation: Estimated Budget Authority ...... –536 ...... –536 Estimated Outlays ...... –42 –220 –128 –59 –32 –18 –13 –512 Vessel Tonnage Duties: ...... Estimated Budget Authority ...... – – – –49 –49 –49 –49 –196 Estimated Outlays ...... – – – –49 –49 –49 –49 –196 FEMA Fees: a Estimated Budget Authority ...... –12 –12 –12 –12 –12 –12 –12 –84 EStimated Outlays ...... –12 –12 –12 –12 –12 –12 –12 –84 Total: Mandatory Spending: Estimated Budget Authority ...... –548 –12 –12 –61 –61 –61 –61 –816 Estimated Outlays ...... –54 –232 –140 –120 –93 –79 –74 –792

a The table reflects changes to current law, if the VA/HUD aopropriations bill is enacted before this provision and extends the collection of $12 million of fees for radiological emergency preparedness in 1996, this provision would not produce any savings in 1996.

ESTIMATED BUDGETARY EFFECTS OF TITLE X: COMMITTEE ON VETERANS AFFAIRS [Millions of dollars, by fiscal year]

1996– 1996 1997 1998 1999 2000 2001 2002 2000 Total

CHANGES IN DIRECT SPENDING HeaLth Care Per Diems and Prescription Copayments: Estimated Budget Authority ...... 0 0 0 ¥58 ¥62 ¥65 ¥70 ¥255 Estimated Outlays ...... 0 0 0 ¥58 ¥62 ¥65 ¥70 ¥255 Medical Care Cost Recovery: Estimated Budget Authority ...... 0 0 0 ¥197 ¥208 ¥219 ¥231 ¥855 Estimated Outlays ...... 0 0 0 ¥197 ¥208 ¥219 ¥231 ¥855 Verify Income for Pension Purposes: Estimated Budget Authority ...... 0 0 0 ¥10 ¥20 ¥30 ¥40 ¥100 Estimated Outlays ...... 0 0 0 ¥10 ¥20 ¥30 ¥40 ¥100 Verify Income for Medical Care: Estimated Budget Authority ...... 0 0 0 ¥4 ¥8 ¥12 ¥16 ¥40 Estimated Outlays ...... 0 0 0 ¥4 ¥8 ¥12 ¥16 ¥40 Pension Limitation—Nursing Home Vets: Estimated Budget Authority ...... 0 0 0 ¥198 ¥204 ¥211 ¥218 ¥831 Estimated Outlays ...... 0 0 0 ¥197 ¥240 ¥173 ¥217 ¥827 Fees on Original Loans: Estimated Budget Authority ...... 0 0 0 ¥100 ¥102 ¥102 ¥102 ¥406 Estimated Outlays ...... 0 0 0 ¥100 ¥102 ¥102 ¥102 ¥406 Fees on Later Loans: Estimated Budget Authority ...... 0 0 0 ¥43 ¥44 ¥44 ¥44 ¥175 Estimated Outlays ...... 0 0 0 ¥43 ¥44 ¥44 ¥44 ¥175 Resale Losses: Estimated Budget Authority ...... 0 0 0 ¥4 ¥4 ¥4 ¥4 ¥16 Estimated Outlays ...... 0 0 0 ¥4 ¥4 ¥4 ¥4 ¥16 Increase Prescription Copayments to $4, Tighten Collection Procedures. Exempt POW’s from Copay: Estimated Budget Authority ...... ¥74 ¥98 ¥102 ¥108 ¥114 ¥120 ¥126 ¥742 Estimated Outlays ...... ¥74 ¥98 ¥102 ¥108 ¥114 ¥120 ¥126 ¥742 Round Down Comp COLAs:a Estimated Budget Authority ...... ¥19 ¥46 ¥66 ¥90 ¥115 ¥145 ¥169 ¥650 Estimated Outlays ...... ¥17 ¥43 ¥64 ¥88 ¥121 ¥133 ¥168 ¥634 Repeal Gardner Decision: Estimated Budget Authority ...... ¥97 ¥222 ¥341 ¥467 ¥476 ¥469 ¥463 ¥2,535 Estimated Outlays ...... ¥89 ¥212 ¥331 ¥457 ¥512 ¥433 ¥464 ¥2,498 Enhanced Loan Asset Sale Authority: Estimated Budget Authority ...... ¥5 ¥5 ¥5 ¥5 ¥5 ¥5 ¥5 ¥35 Estimated Outlays ...... ¥5 ¥5 ¥5 ¥5 ¥5 ¥5 ¥5 ¥35 Withholding of Payments and Benefits: Estimated Budget Authority ...... ¥90 0 0 0 0 0 0 ¥90 Estimated Outlays ...... ¥90 0 0 0 0 0 0 ¥90 Total-DIrect Spending: Estimated Budget Authority ...... ¥285 ¥371 ¥514 ¥1,284 ¥1,362 ¥1,462 ¥1,488 ¥6,730 Estimated Outlays ...... ¥275 ¥358 ¥502 ¥1,271 ¥1,440 ¥1,340 ¥1,487 ¥6,673

a Similar provisions were included in H.R. 2394, the Veterans’ Compensation Cost-of-Living Adjustment Act of 1995. Congressional action on the bill was completed on November 10, 1995. H.R. 2394 rounds down the COLA for 1996 only; the provisions in Title X would round down the COLAs through 2002, and make other adjustments to COLAs for surviving spouses.

ESTIMATED BUDGETARY EFFECTS OF TITLE XI: REVENUE PROVISIONS [In millions of dollars, by fiscal year]

1996– 1996 1997 1998 1999 2000 2001 2002 2002 Total

CHANGES IN DIRECT SPENDING Tax Information Sharing: Estimated Budget Authority ...... ¥14 ¥28 ¥42 ¥56 ¥140 Estimated Outlays ...... ¥14 ¥28 ¥42 ¥56 ¥140 Total: Direct Spending: Estimated Budget Authority ...... 0 0 0 ¥14 ¥28 ¥42 ¥56 ¥140 Estimated Outlays ...... 0 0 0 ¥14 ¥28 ¥42 ¥56 ¥140 CHANGES IN REVENUES Family Tax Relief Act: Estimated Revenues ...... ¥4,740 ¥29,381 ¥23,846 ¥24,319 ¥25,087 ¥25,784 ¥26,268 ¥159,425 Savings and Retirement Incentives: Estimated Revenues ...... 67 ¥7,674 ¥12,049 ¥13,371 ¥13,762 ¥14,471 ¥6,315 ¥67575 Health Related Provisions: Estimated Revenues ...... ¥988 ¥834 ¥1,060 ¥1,337 ¥1,590 ¥1,879 ¥2,197 ¥9,885 Estate and Gift Provisions: Estimated Revenues ...... 0 ¥867 ¥1,291 ¥1,753 ¥2,261 ¥2,808 ¥3,311 ¥12,291 Extension of Expiring Provisions: Estimated Revenues ...... ¥2,000 ¥1,585 ¥491 ¥73 400 997 1,421 ¥1,331 Taxpayer Bill of Rights 2 Provisions: Estimated Revenues ...... ¥6 ¥11 ¥12 ¥12 ¥12 ¥13 ¥13 ¥79 Casualty and Involuntary Conversion Provisions: Estimated Revenues ...... ¥1 ¥9 ¥1 4 11 20 31 55 Exempt Organizations and Charitable Reforms Estimated Revenues: ...... 0 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥12 Tax Reform and Other Provisions: Estimated Revenues ...... 2,288 3,258 3,403 3,824 4,018 4,370 4,657 25,818 Tax Simplification: Estimated Revenues ...... 0 ¥14 ¥58 ¥194 ¥487 ¥550 ¥632 ¥1,935 Miscellaneous Provisions: Estimated Revenues ...... ¥28 ¥98 ¥160 ¥205 178 264 199 150 Generalized System of Preferences: Estimated Revenues ...... ¥532 ¥82 0 0 0 0 0 ¥614 Increase in the Public Debt Limit: Estimated Revenues ...... 0 0 0 0 0 0 0 0 Total: Revenues: Estimated Revenues ...... ¥5,940 ¥37,299 ¥35,567 ¥37,438 ¥38,594 ¥39,856 ¥32,430 ¥227,124 November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17267 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1 [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

CONTRACT WITH AMERICA PROVISIONS I. Family tax relief provisions: 1. $500 tax credit for children under age 18—Senate amendment ($75,000/ 10/1/95 ...... ¥4,449 ¥28,355 ¥22,529 ¥22,761 ¥22,996 ¥23,169 ¥23,343 ¥101,090 ¥147,602 $110,000 phaseout with no indexing). 2. Reduce the marriage penalty ...... tyba 12/31/95 ...... ¥137 ¥474 ¥739 ¥952 ¥1,458 ¥1,970 ¥2,270 ¥3,760 ¥8,000 3. $5,000 credit for adoption expenses—Senate amendment, but phase out begin- tyba 12/31/95 ...... ¥28 ¥285 ¥302 ¥320 ¥336 ¥337 ¥337 ¥1,271 ¥1,945 ning at $75,000 AGI; require finalized adoption only for foreign adoptions; spe- cial needs adoptions—House bill. 4. $1,000 deduction (with residency and support tests) for custodial care of cer- tyba 12/31/95 ...... ¥74 ¥115 ¥119 ¥124 ¥129 ¥134 ¥138 ¥561 ¥833 tain elderly dependents in taxpayer’s home. II. Savings and investment provisions: 1. Provisions relating to individual Retirement Arrangements—(a) deductible tyba 12/31/95 ...... ¥221 ¥487 ¥100 ¥990 ¥1,817 ¥3,332 ¥4,807 ¥3,615 ¥11,755 IRAs—Senate amendment, except increase phaseout range for joint filers in $2,500 increments; Homemakers eligible for full IRA deduction—both House bill and Senate amendment; (b) back-end IRAa—House bill with coordination of contribution limits; (c) definition of special purpose withdrawals—Senate amendment; (d) penalty free withdrawals from deductible IRAs—Senate amend- ment. 2. Capital gains reforms: (a) individual capital gains—House bill; (b) small busi- ness stock—14% maximum rate for individuals, reduced corporate rate; (c) in- dexing of capital gains—House bill, with 6-year delay of effective date; (d) cor- porate capital gains—Senate amendment; and (e) capital loss deducation for sale of principal residence—House bill: a. Corporate ...... tyea 12/31/94 ...... ¥1,009 ¥893 ¥912 ¥945 ¥971 ¥1,024 ¥1,129 ¥4,730 ¥6,883 b. Individual ...... tyea 12/31/94 ...... 2,857 ¥2,677 ¥6,757 ¥7,546 ¥8,191 ¥7,990 ¥1,450 ¥22,314 ¥28,854 3. Alternative minimum tax (AMT) Reform—Senate amendment, except conform ppisa & tyba 12/31/95 ...... ¥1,290 ¥3,149 ¥3,722 ¥3,248 ¥2,141 ¥1,487 ¥1,252 ¥13,550 ¥16,291 depreciation lives and methods under AMT and, with respect to certain mini- mum tax credits, substitute 7 years for 5 years. III. Health care provisions: 1. Treatment of long-term care insurance—House bill, but adopt Senate provision 1/1/96 ...... ¥860 ¥556 ¥659 ¥751 ¥846 ¥951 ¥1,061 ¥3,672 ¥5,684 providing no cap on indemnity policies, permit penalty-free (not tax-free) 401(k) and IRA withdrawals, $175 per day cap on per diem benefits, and adopt Senate consumer protections. 2. Tax treatment of accelerated death benefits under life insurance contracts— 1/1/95 ...... ¥6 ¥67 ¥107 ¥166 ¥214 ¥265 ¥316 ¥560 ¥1,141 House bill, but adopt Senate rule relating to NAIC guidelines. 3. Health insurance organizations eligible for benefits of section 833—Senate tyea 10/13/95 ...... ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥8 amendment. 4. Increase tax-free death benefit limit on burial insurance polices—Senate ceia 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) (2) amendment. IV. Estate and gift tax provisions: 1. Phase up unified credit to $750,000—House bill with 6-year phase in with in- dda/gma 12/31/95 ...... ¥333 ¥663 ¥1,020 ¥1,401 ¥1,805 ¥2,154 ¥3,417 ¥7,376 dexing thereafter; index $10,000 annual gift tax exclusion; $750,000 special use valuation; generation-skipping tax; and indexing of $1 million value of closely held businesses under section 6601j. 2. Reduction in estate taxes for qualified businesses after unified credit in- dda 12/31/95 ...... ¥490 ¥579 ¥680 ¥798 ¥934 ¥1,081 ¥2,547 ¥4,562 crease—Senate amendment, but change thresholds to $1 million/$1.5 million and coordinate with section 2032A and section 6166. 3. Provide a 40% exclusion from estate taxes for property donated subject to a dda 12/31/95 ...... ¥42 ¥47 ¥51 ¥60 ¥67 ¥74 ¥200 ¥340 conservation easement (within 25 miles of a metropolitan statistical area or a national park or wilderness area; or within 10 miles of an Urban National For- est). 4. Clarify cash leases under section 2032A—Senate amendment ...... cla 12/31/95 ...... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥8 ¥12 V. Job creation and wage enhancement provisions: 1. Leasehold improvements provision—House bill ...... llda 3/13/95 ...... ¥34 ¥230 ¥17 ¥15 ¥12 ¥9 ¥6 ¥98 ¥114 2. Small business incentives—House bill, but modify increase in expensing limita- pplsa 12/31/95 ...... ¥191 ¥379 ¥470 ¥553 ¥554 ¥550 ¥489 ¥2,147 ¥3,186 tion for small businesses to $19,000 for 1996, $20,000 for 1997, $21,000 for 1998, $22,000 for 1999, $23,000 for 2000, $24,000 for 2001, and $25,000 for 2002 and thereafter. Subtotal: Contract With America related provisions ...... ¥5,443 ¥38,325 ¥37,725 ¥40,125 ¥41,927 ¥44,027 ¥37,010 ¥163,545 ¥244,586 VI. Expiring provisions: 1. Provisions extended through 12/31/96: a. Work opportunity tax credit—Senate amendment, with modifications 3 ...... 1/1/96 ...... ¥64 ¥107 ¥65 ¥25 ¥10 ¥2 ...... ¥271 ¥274 b. Employer-provided educational assistance; applies to undergraduate edu- 1/1/95 ...... ¥611 ¥288 ...... ¥899 ¥899 cation only after 1995. c. R&E credit—House bill ...... 7/1/95 ...... ¥1,322 ¥842 ¥387 ¥275 ¥165 ¥42 ...... ¥2,991 ¥3,033 d. Orphan drug tax credit—Senate amendment ...... 1/1/95 ...... ¥35 ¥10 ¥2 ¥1 ¥1 (2) (2) ¥49 ¥50 e. Contribution of appreciated stock to private foundations ...... 1/1/95 ...... ¥107 ¥18 ¥6 ...... ¥130 ¥130 2. Commercial aviation fuel: extend 4.3 cents/gallon exemption through 9/30/97; 10/1/95 ...... ¥417 ¥439 ¥6 ...... ¥863 ¥863 but conditional on extension of Airport and Airway Trust Fund taxes. 3. Extend all Airport and Airway Trust Fund excise taxes through 9/30/96—House 1/1/96 ...... No Revenue Effect bill 4. 4. Extend IRS user fees through 9/30/02 5—Senate amendment ...... 10/1/00 ...... 35 35 ...... 70 5. Sunset the low-income housing tax credit after 12/31/97; sunset national pool DOE ...... ¥24 ¥29 64 333 674 1,046 1,431 1,018 3,494 after 12/31/95—House bill. 6. Superfund and oil spill liability taxes: a. Extend Superfund excise taxes through 9/30/96; receipts go to general DOE ...... 319 16 ...... 335 335 revenues after 7/31/96. b. Extend Superfund AMt through 12/31/96 6 ...... DOE ...... 290 193 ...... 483 483 c. Extend oil spill tax through 9/30/02—Senate amendment ...... 1/1/96 ...... 60 60 ...... 120 7. Extend excise tax refund authority for alcohol fuels blenders—Senate amend- DOE ...... Negligible Revenue Effect ment. 8. Extend section 29 binding contract date 6 months from date of enactment and DOE ...... ¥30 ¥81 ¥97 ¥93 ¥96 ¥101 ¥301 ¥499 placed-in-service date to 12/3/97 for biomass and coal. 9. Exempt from diesel dyeing requirement any States exempt from Clean Air Act fcqa DOE ...... (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥3 ¥4 dyeing requirement (permanent). 10. Suspend tax on diesel fuel for recreational boats—Senate amendment 1/1/96 ...... ¥24 ¥27 ¥4 ¥4 ¥1 ...... ¥60 ¥61 (through 6/30/97). 11. Permanent extension of FUTA exemption for alien agricultural workers 5—House 1/1/95 ...... ¥5 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥17 ¥23 bill. 12. Information Sharing Provision: Extension of disclosure of return Information to DOE ...... 14 28 42 56 42 140 Department of Veterans Affairs (outlay reduction) 5—House bill, except extend through 9/30/02 only. VII. Medical savings accounts: 1. Medical Savings Accounts—House bill, except follow the Senate amendment tyba 12/31/95 ...... ¥122 ¥211 ¥258 ¥307 ¥362 ¥391 ¥421 ¥1,260 ¥2,072 with respect to (a) maximum contribution limit ($2,000 single and $4,000 fam- ily); (b) tax-free build up of earnings; (c) definition of qualified medical ex- penses; (d) post-death distribution rules; and (e) clarification relating to cap- italization of policy acquisition costs. VIII. Taxpayer bill of rights 2: 1. Expansion of authority to abate interest ...... DOE ...... (7) (7) (7) (7) (7) (7) (7) (8) (8) 2. Extension of interest-free period for payment of tax—House bill ...... 6/30/96 ...... ¥2 ¥7 ¥8 ¥8 ¥8 ¥9 ¥9 ¥10 ¥51 3. Joint return may be made after separate returns without full payment of tax ..... tyba DOE ...... (7) (7) (7) (7) (7) (7) (7) (8) (8) 4. Increase levy exemption 9 ...... lia 12/31/95 ...... (7) (7) (7) (7) (7) (7) (7) (8) (10) 5. Offers-in-compromise—Senate amendment ...... DOE ...... (7) (7) (7) (7) (7) (7) (7) (8) (8) 6. Increased limit on attorney fees—House bill ...... DOE ...... ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥7 7. Award of litigation costs permitted in declaratory judgment proceedings ...... pca DOE ...... (7) (7) (7) (7) (7) (7) (7) (8) (8) 8. Increase in limit on recovery of civil damages—House bill ...... DOE ...... ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥15 ¥21 9. Enrolled agents included as third-party recordkeepers ...... sla DOE ...... (7) (7) (7) (7) (7) (7) (7) (8) (8) 10. Annual reminders to taxpayers with delinquent accounts ...... 1/1/96 ...... (11) (11) (11) (11) (11) (11) (11) (12) (12) S 17268 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

IX. Casualty and involuntary conversion provision: 1. Changes involuntary conversion rules for Presidentially declared disaster DDA 12/31/94 ...... ¥6 ¥14 ¥10 ¥10 ¥10 ¥10 ¥10 ¥50 ¥70 areas—Senate amendment. X. Exempt and charitable organizations provisions: 1. Provide tax-exempt status to common investment funds—Senate amendment ... tyea 12/31/95 ...... ¥4 ¥6 ¥6 ¥7 ¥7 ¥7 ¥8 ¥30 ¥45 2. Exclusion from UBIT for certain corporate sponsorship payments—Senate pra 12/31/95 ...... Negligible Revenue Effect amendment. 3. Intermediate sanctions for certain tax-exempt organizations—House bill, with 9/14/95 1/1/96 ...... 4 4 4 5 5 5 6 22 33 technical modifications. XI. Corporate and other reforms: 1. Reform the tax treatment of certain corporate stock reemptions—House bill ...... da 5/3/95 ...... ¥83 ¥100 ¥17 84 209 343 437 93 873 2. Require corporate tax shelter reporting; modify recipient notice to 90 days ...... alolRSg ...... (12) (12) (12) (12) (12) (12) (12) (13) (13) 3. Disallow interest deduction for corporate-owned life insurnce policy loans—Sen- ipoaa 10/31/95 ...... 220 579 883 1,369 1,749 1,856 1,895 4,800 8.551 ate amendment, but phase out disallowance (90% in 1996, 80% in 1997, and 70% in 1998; cap borrowing at 20,000 lives); cap interest rate (with special rules for grandfathered plans); exception for key person policies with 10 lives; limit borrowing in 1996 to policies purchased in 1994 and 1995. 4. Phase out preferential tax deferral for certain large farm corporations required (15) ...... 26 37 38 39 40 41 42 179 261 to use accrual accounting. 5. Phase-in repeal of section 936; Wage credit companies—6 years of present law tyba 12/3/95 ...... 255 605 552 596 498 516 746 2,506 3,766 and then House bill with modified base period; income companies—2 years of present law and then House bill with modified base period; QPSII—repealed 1/ 1/96. 6. Corporate accounting—reform of income forecast method—Senate amendment ppisa 9/13/95 ...... 32 69 29 13 14 16 19 157 192 7. Permit transfers of excess pension assets—House bill but (a) require asset ta DOE ...... 1,439 1,375 958 554 195 151 ¥19 4,521 4,651 cushion equal to the greater of (i) 125% of termination liability (using PBGC assumptions) and (ii) the plan’s accrued liability; (b) permit withdrawals only for ERISA-covered benefits; (c) prohibit transfers when company in bankruptcy; (d) no excise tax; (e) extend for 1 additional year; and (f) conform present-law section 420 asset cushion. 8. Modify exclusion of damages received on account of personal injury or sick- ama 12/31/95 ...... 34 51 55 59 61 64 68 260 392 ness—Senate amendment, with technical clarifications. 9. Require tax reporting for payments to attorneys; delay effective date for 1 year . pma 12/31/96 ...... (12) (12) (12) (12) (12) (12) (13) (13) 10. Expatriation tax provisions—House bill ...... 2/6/95 ...... 64 97 146 199 254 289 304 760 1,353 11. Remove business exclusion for energy subsidies provided by public utilties— ara 12/31/95 ...... 30 96 100 104 107 109 111 437 657 House bill, but modify effective date. 12. Modify basis adjustment rules under section 1033 ...... ica 9/13/95 ...... 2 4 6 9 14 20 29 35 84 13. Modify the exception to the related party rule of section 1033 for individuals ica 9/13/95 ...... 1 2 4 6 8 11 13 21 45 to only provide an exception for de minimis amounts ($100,000). 14. Disallow rollover under section 1034 to extent of previously claimed deprecia- tyea 12/31/95 ...... 1 3 4 5 6 8 9 19 35 tion for home office or other depreciable use of residence. 15. Provide that rollover of gain on sale of a principal residence cannot be elected sea 12/31/95 ...... (16) (16) (16) (16) (16) (16) (16) (16) (16) unless the replacement property purchased is located within the United States (limit to resident aliens who terminate residence within 2 years). 16. Repeal exemption for withholding on gambling winnings from bingo and keno 1/1/96 ...... 20 6 6 6 6 7 7 44 58 where proceeds exceed $5,000. 17. Repeal tax credit for contributions to special Community Development Corpora- DOE ...... 1 1 2 2 2 2 2 8 12 tions. 18. Repeal advance refunds of diesel fuel tax for diesel cars and light trucks ...... 1/1/96 ...... 8 19 19 19 19 19 19 84 122 19. Apply failure to pay penalty to substitute returns ...... DOE ...... 1 3 29 30 32 33 35 95 163 20. Allow conversion of scholarship funding corporation to taxable corporation— DOE ...... 3 4 6 8 10 10 9 31 48 House bill. 21. Apply look-through rule for purposes of characterizing certain subpart F insur- gira 12/31/95 ...... 7 23 24 27 30 32 34 111 177 ance income as UBIT—House bill. 22. Repeal 50% Interest Income exclusion for financial institution loans to ima 10/13/95 ...... 27 69 109 149 187 224 261 541 1,026 ESOPs—Senate amendment. 23. Modify the ozone depleting chemicals tax for imported recycled halons—Sen- DOE ...... (7) (7) (7) (7) (7) (7) (7) (10) (17) ate amendment. 24. Modify two county tax-exempt bond rule for local furnishers of electricity or DOE ...... (16) 1 2 3 4 5 6 10 22 gas—Senate amendment. 25. Provide tax-exempt bonds status for Alaska Power Administration sale—Sen- bia DOE ...... (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥4 ¥8 ate amendment. 26. Modify treatment of foreign trusts—Senate amendment ...... (18) ...... 93 162 171 180 188 197 206 794 1,197 27. Provide for flow through treatment for Financial Asset Securitization Invest- DOE ...... 34 18 10 5 2 ...... ¥2 69 67 ment Trusts (FASITs)—Senate amendment. 28. Tax-free treatment of contributions in aid of construction for water utilities; (19) ...... ¥16 ¥26 ¥12 4 19 32 43 ¥31 43 change depreciation for water utilities—Senate amendment. 29. Provide 3-year amortization of intrastate operating rights of truckers—Senate tyeo/a 1/1/95 ...... ¥11 ¥14 ¥8 ¥4 ...... ¥37 ¥37 amendment. 30. A life insurance company may elect to treat 20% of capital losses as ordinary tyba 12/31/94 ...... 1 (16) (2) ¥1 (2) (16) (16) (16) 1 income, spread over 10 years; the taxpayer has the option to change the treat- ment of these losses in the future—Senate amendment, with modifications. 31. Clarify that newspaper carriers and distributors are independent contractors— spa 12/31/95 ...... Negligible Revenue Effect Senate amendment. 32. Allow for tax-free conversion of common trust funds to mutual funds—Senate ta 12/31/95 ...... ¥4 ¥9 ¥8 ¥8 ¥8 ¥8 ¥8 ¥37 ¥52 amendment. 33. Eliminate interest allocation exception for certain nonfinancial corporations— tyba 12/31/95 ...... 41 93 107 123 141 163 187 505 855 Senate amendment. 34. Modify depreciation for small motor fuel/convenience store outlets—Senate ppiso/a/b DOE ...... ¥1 ¥4 ¥23 ¥26 ¥29 ¥16 ¥19 ¥83 ¥118 amendment. 35. Repeal of section 593 with residential loan test for 1996 and 1997 ...... tyba 12/31/95 ...... 63 95 216 280 277 272 260 931 1,462 36. Phase out and extend luxury automobile excise tax through 12/31/02 ...... 1/1/96 ...... ¥41 ¥97 ¥159 ¥204 179 265 200 ¥322 143 XII. Technical correction provision: Luxury Excise Tax Indexing ...... DOE ...... 14 ...... 14 14 XIII. Simplification provisions relating to individuals: 1. Rollover of gain on sale of principal residence: a. Multiple sales within rollover period—House bill ...... sa DOE ...... ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥3 ¥9 ¥14 b. Rules in case of divorce—House bill ...... sa DOE ...... ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥3 ¥11 ¥17 2. One-time exclusion on the sale of a principal residence by an individual who sa 9/13/95 ...... ¥10 ¥19 ¥20 ¥21 ¥22 ¥23 ¥24 ¥92 ¥139 has attained age 55 (allow additional exclusion for married couples under cer- tain conditions where one spouse has claimed an exclusion prior to their mar- riage)—House bill. 3. Treatment of certain reimbursed expenses of rural mail carriers—House bill ..... tyba 12/31/95 ...... (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥6 4. Travel expenses of Federal employee participating in a Federal criminal inves- tyba DOE ...... (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 tigation—House bill. 5. Treatment of storage of product samples—House bill ...... tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥2 XIV. Pension simplification provision: A. Simplified Distribution Rules: 1. Sunset of 5-year income averaging for lump-sum distributions—Senate tyba 12/31/98 ...... 24 74 63 109 80 42 17 350 409 amendment. 2. Repeal of $5,000 exclusion of employees’ death benefits ...... tyba 12/31/95 ...... 16 16 49 52 54 55 55 217 328 3. Simplified method for taxing annuity distributions under certain employer asda 12/31/95 ...... 10 28 28 28 29 29 29 123 182 plans—Senate amendment. 4. Minimum required distribution ...... yba 12/31/95 ...... ¥1 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥17 ¥25 B. Increased Access to Pension Plans—Tax-exempt organizations eligible under yba 12/31/96 ...... ¥8 ¥22 ¥24 ¥25 ¥26 ¥28 ¥79 ¥133 section 401(k)—Senate amendment, but permit all tax exempts and Indian tribes to have 401(k) plans. C. Nondiscrimination Provisions: 1. Simplified definition of highly compensated employees—House bill, with yba 12/31/95 ...... Considered in Other Provisions modifications. 2. Repeal of family aggregation rules ...... yba 12/31/95 ...... Considered in Other Provisions November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17269 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

3. Modification of additional participation requirements ...... yba 12/31/95 ...... Negligible Revenue Effect 4. Safe-harbor nondiscrimination rules for qualified cash or deferred ar- yba 12/31/98 ...... ¥42 ¥162 ¥167 ¥171 ¥294 ¥541 rangements and matching contributions 20—Senate amendment, with modification. D. Miscellaneous Pension Simplification: 1. Treatment of leased employees—Senate amendment ...... yba 12/31/95 ...... Negligible Revenue Effect 2. Plans covering self-employed individuals ...... yba 12/31/95 ...... Negligible Revenue Effect 3. Elimination of special vesting rule for multiemployer plans ...... yba 12/31/95 ...... (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥4 ¥6 4. Distributions under rural cooperative plans—Senate amendment, with DOE ...... Negligible Revenue Effect modifications. 5. Treatment of governmental plans under section 415—House bill, with tybo/a DOE ...... Negligible Revenue Effect Senate effective date. 6. Uniform retirement age ...... 1/1/96 ...... Considered in Other Provisions 7. Contributions on behalf of disabled employees ...... yba 12/31/95 ...... Negligible Revenue Effect 8. Treatment of deferred compensation plans of State and local governments tyba 12/31/95 ...... (2) ¥1 ¥1 ¥1 ¥1 ¥2 ¥2 ¥4 ¥8 and tax-exempt organizations—House bill, with modification. 9. Require Individual ownership of section 457 plan assets—House bill, with DOE ...... ¥6 ¥18 ¥21 ¥24 ¥25 ¥25 ¥26 ¥94 ¥145 effective date change (i.e., to the end of the first legislative session after enactment). 10. Correction of GATT interest and mortality rate provisions in the Retire- eall GATT ...... ¥4 ¥4 ¥4 ¥4 ...... ¥16 ¥16 ment Protection Act—House bill, with modifications. 11. Multiple salary reduction agreements permitted under section 403(b) ...... tyba 12/31/95 ...... Negligible Revenue Effect 12. Repeal of combined plan limit—House bill, with Senate effective date .... yba 12/31/98 ...... ¥70 ¥189 ¥195 ¥201 ¥259 ¥654 13. Modify notice required of right to qualified joint and survivor annuity— pyba 12/31/95 ...... Negligible Revenue Effect House bill. 14. 3-year waiver of excess distribution tax—Senate amendment ...... 1/1/96 ...... 38 40 43 3 ...... 124 124 15. Definition of compensation for section 415 purposes—Senate amend- yba 12/31/97 ...... ¥1 ¥1 ¥2 ¥2 ¥2 ¥4 ¥8 ment. 16. Increase section 4975 excise tax on prohibited transactions from 5% to ptoo/a 1/1/96 ...... 1 4 4 4 4 4 4 17 24 10%—Senate amendment. 17. Treatment of Indian tribal governments under section 403(b)—Senate pybb 1/1/95 ...... Negligible Revenue Effect amendment provision and permit rollover to 401(k). 18. Application of elective deferral limit to section 403(b) plans—Senate tyba 12/31/95 ...... Negligible Revenue Effect amendment, with modifications. 19. Establish SIMPLE pension plan—Senate amendment, but repeal SEPs ..... yba 12/31/95 ...... ¥45 ¥69 ¥71 ¥74 ¥76 ¥79 ¥82 ¥335 ¥497 20. Increase the self-employed health insurance deduction (35% in 1998 tyba 12/31/97 ...... ¥36 ¥113 ¥168 ¥272 ¥399 ¥317 ¥988 and 1999; 40% in 2000 and 2001; and 50% in 2002 and thereafter). XV. Partnership simplification provisions: 1. Simplified reporting to partners—House bill, but elective ...... tyba 12/31/95 ...... 5 6 6 7 7 7 7 31 45 2. Returns required on magnetic media for partnerships with 100 partners or tyba 12/31/95 ...... Negligible Revenue Effect more—House bill. XVI. Foreign tax simplification provisions: A. Modification of Passive Foreign Investment Company Provisions to Eliminate tyba 12/31/95 ...... ¥7 ¥18 ¥20 ¥21 ¥22 ¥24 ¥25 ¥88 ¥137 Overlap with Subpart F and to Allow Mark-to-Market Election—House bill. B. Modifications to Provisions Affecting Controlled Foreign Corporations: 1. General provisions—House bill ...... ¥1 ¥2 ¥2 ¥3 ¥3 ¥3 ¥3 ¥11 ¥17 2. Repeal of excess passive assets provision (section 956A)—House bill ...... tyba 9/30/95 ...... ¥17 ¥26 ¥29 ¥35 ¥41 ¥45 ¥51 ¥148 ¥244 XVII. Other income tax simplification provisions: A. Subchapter S Corporations: 1. Increase number of eligible shareholders—House bill ...... tyba 12/31/95 ...... ¥7 ¥12 ¥14 ¥16 ¥20 ¥22 ¥25 ¥69 ¥116 2. Permit certain trusts to hold stock in S corporations—House bill ...... tyba 12/31/95 ...... ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥9 ¥13 3. Extend holding period for certain trusts—House bill ...... tyba 12/31/95 ...... (10) (10) (10) (10) (10) (10) (10) (10) (10) 4. Financial Institutions permitted to hold safe-harbor debt—House bill ...... tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 5. Authority to validate certain invalid elections—House bill ...... tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 6. Allow Interim losing of the books ...... tyba 12/31/95 ...... Negligible Revenue Effect 7. Expand post-termination period and amend subchapter S audit proce- tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 dures—House bill. 8. S corporations permitted to hold S or C subsidiaries—House bill ...... tyba 12/31/95 ...... ¥3 ¥7 ¥9 ¥11 ¥13 ¥15 ¥17 ¥43 ¥75 9. Treatment of distributions during loss years—House bill ...... tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 10. Treatment of S corporations as shareholders in C corporations—House tyba 12/31/95 ...... (10) (10) (10) (10) (10) (10) (10) (10) (10) bill. 11. Elimination of certain earnings and profits of S corporations—House bill tyba 12/31/95 ...... (10) (10) (10) (10) (10) (10) (10) (10) (10) 12. Treatment of certain losses carried over under at-risk rules—House bill . tyba 12/31/95 ...... (10) (10) (10) (10) (10) (10) (10) (10) (10) 13. Adjustments to basis of Inherited S stock—House bill ...... dda DOE ...... (11) (11) (11) (11) (11) (11) (11) (11) (11) 14. Treatment of certain real estate held by an S corporation—House bill ..... tyba 12/31/95 ...... (2) ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥6 ¥10 15. Transition rule for elections after termination—House bill ...... tyba 12/31/95 ...... (10) (10) (10) (10) (10) (10) (10) (10) (10) 16. Interaction of subchapter S changes—House bill ...... ¥3 ¥10 ¥26 ¥32 ¥37 ¥38 39 ¥108 ¥185 B. Regulated Investment Companies (RICs)—Repeal of 30% gross income limita- tyea DOE ...... ¥9 ¥17 ¥20 ¥24 ¥28 ¥32 ¥35 ¥98 ¥164 tion for RICs—House bill. C. Accounting Provisions: 1. Modifications to look-back method for long-term contracts—House bill ..... cc/tyea/E ...... ¥2 ¥3 ¥3 ¥3 ¥4 ¥4 ¥4 ¥15 ¥23 2. Allow traders to adopt mark-to-market accounting for securities—House DOE ...... Negligible Revenue Effect bill. 3. Modification of Treasury ruling requirement for nuclear decommissioning tyba DOE ...... ¥4 ¥4 ¥5 ¥5 ¥5 ¥5 ¥5 ¥23 ¥33 funds—House bill. 4. Provide that a taxpayer may elect to include in income crop insurance pra/cdoa 12/31/92 ...... 2 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥2 ¥4 proceeds and disaster payments in the year of the disaster or in the fol- lowing year—Senate amendment. D. Tax-Exempt Bond Provision—Repeal of debt service-based limitation on invest- bla DOE ...... Negligible Revenue Effect ment in certain non-purpose investments—House bill. E. Insurance Provisions: 1. Treatment of certain insurance contracts on retired lives ...... tyba 12/31/95 ...... 6 ¥4 5 4 4 12 ¥7 15 21 2. Treatment of modified guaranteed contracts ...... tyba 12/31/95 ...... ¥1 2 4 1 2 1 ¥1 8 8 F. Other Provisions: 1. Closing of partnership taxable year with respect to deceased partner— tyba 12/31/95 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 House bill. 2. Modifications to the FICA tip credit—House bill ...... eaii OBRA ’93 ...... Negligible Revenue Effect 3. Conform due date for first quarter estimated tax by private foundations— 1/1/96 ...... Negligible Revenue Effect House bill. 4. Treatment of dues paid to agricultural or horticultural organizations ...... tyba 12/31/94 ...... Negligible Revenue Effect Student loan interest deduction ($2,500 above-the-line deduction; phaseout polda 12/31/95 ...... ¥52 ¥152 ¥157 ¥162 ¥168 ¥174 ¥180 ¥691 ¥1,046 $45,000–$65,000 singles/$65,000–$85,000 joint). XVIII. Estate, gift, and trust tax provisions: A. Estate and Trust Income Tax Provisions: 1. Certain revocable trusts treated as part of estate—House bill ...... DOE ...... (10) (10) (10) (10) (10) (10) (10) (21) (21) 2. Distributions during first 65 days of taxable year of estate—House bill .... DOE ...... Negligible Revenue Effect 3. Separate share rules available to estates—House bill ...... DOE ...... Negligible Revenue Effect 4. Executor of estate and beneficiaries treated as related persons for dis- DOE ...... Negligible Revenue Effect allowance of losses—House bill. 5. Limitation on taxable year of estate—House bill ...... DOE ...... Negligible Revenue Effect 6. Simplified taxation of earnings of pre-need funeral trusts—House bill, tyba DOE ...... (11) (11) (11) (11) (12) (12) (12) (12) 8 with $7,000 limit. B. Estate and Gift Tax Provisions: 1. Clarification of waiver of certain rights of recovery—House bill ...... DOE ...... Negligible Revenue Effect 2. Adjustments for gifts within 3 years of decedent’s death—House bill ...... DOE ...... ¥6 ¥6 ¥7 ¥7 ¥7 ¥7 ¥26 ¥40 3. Clarification of qualified terminable interest rules—House bill ...... DOE ...... Negligible Revenue Effect 4. Transitional rule under section 2056A—House bill ...... eali OBRA ’90 ...... Negligible Revenue Effect 5. Opportunity to correct certain failures under section 2032A—House bill .... DOE ...... Negligible Revenue Effect 6. Gifts may not be revalued for estate tax purposes after expiration of stat- ga DOE ...... ¥15 ¥16 ¥16 ¥18 ¥21 ¥26 ¥65 ¥112 ute of limitations—House bill. S 17270 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

7. Clarifications relating to disclaimers—House bill ...... DOE ...... ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥8 ¥14 8. Clarify relationship between community property rights and retirement DOE ...... ¥3 ¥4 ¥4 ¥4 ¥4 ¥4 ¥15 ¥23 benefits—House bill. 9. Treatment under qualified domestic trust rules of forms of ownership DOE ...... Negligible Revenue Effect which are not trusts—House bill. C. Generation-Skipping Tax Provisions: 1. Taxable termination not to include direct skips—House bill ...... DOE ...... Negligible Revenue Effect 2. Modification of generation-skipping transfer tax for transfers to individ- gsta 12/31/94 ...... ¥3 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥19 ¥27 uals with deceased parents—Senate amendment. XIX. Excise tax simplification provisions: A. Distilled Spirits, Wines, and Beer: 1. Credit or refund for imported bottled distilled spirits returned to bonded fcq DOE+180 days ...... Negligible Revenue Effect premises—House bill. 2. Fermented material from any brewery may be received at a distilled spirits fcq DOE+180 days ...... Negligible Revenue Effect plant—House bill. 3. Refund of tax on wine returned to bond not limited to unmerchantable fcq DOE+180 days ...... Negligible Revenue Effect wine—House bill. 4. Beer may be withdrawn free of tax for destruction—House bill ...... fcq DOE+180 days ...... Negligible Revenue Effect 5. Transfer to brewery of beer imported in bulk without payment of tax— fcq DOE+180 days ...... Negligible Revenue Effect House bill. B. Consolidate Imposition of Aviation Gasoline Excise Tax—House bill ...... 1/1/96 ...... (16) ...... (16) (16) C. Other Excise Tax Provision—Clarify present law for retail truck excise tax (cer- DOE ...... Negligible Revenue Effect tain activities do not constitute remanufacture)—House bill. XX. Administrative simplification provision: A. General Provision—Certain notices disregarded under provision increasing inter- 1/1/96 ...... (2) (2) (2) (2) (2) (2) (2) (2) ¥1 est rate on large corporate underpayments—House bill. XXI. Increase in public debt limit ...... Total of revenue provisions ...... ¥5,408 ¥37,217 ¥35,567 ¥37,438 ¥38,594 ¥39,856 ¥32,430 ¥154,155 ¥226,450 Total of outlay provisions ...... 14 28 42 56 42 140 1 The Earned Income Credit provisions are included in Title XII of the conference agreement; the budget effects are shown in a separate table. 2 Loss of less than $500,000. 3 Credit rate at 35% on first $6,000 of income, eligible workers expanded to include welfare cash recipients and veteran foodstamp recipients; 500 hour work requirement. 4 Section 257(b)(2)(c) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Enforcement Act of 1990, indicates that ‘‘excise taxes dedicated to a trust fund, if expiring, are assumed to be ex- tended at current rates’’. Since the revenues from these taxes are dedicated to the Airport and Airway Trust Fund, an extension of the taxes is scored as having no revenue effect. 5 Estimates provided by the Congressional Budget Office (CBO). 6 Estimates presented after interaction with Alternative Minimum tax provisions and are shown net of offset with the corporate income tax. 7 Loss of less than $1 million. 8 Loss of less than $2 million. 9 Increase exemption for books and tools of trade to $1,250. 10 Loss of less than $5 million. 11 Gain of less than $1 million. 12 Gain of less than $5 million. 13 Gain of less than $25 million. 14 Gain of less than $30 million. 15 No new suspense accounts could be established in taxable years ending after 9/13/95. The income in existing suspense accounts would be recognized in equal installments over a 20-years period beginning with the first taxable year beginning after 9/13/95. 16 Gain of less than $500,000. 17 Loss of less than $10 million. 18 Various effective dates depending on provisions. 19 Effective for amounts received after date of enactment and property placed in service after date of enactment with the exception of certain property subject to a binding contract on the date of enactment. 20 This provision considers interaction effects of SIMPLE retirement plan provisions. 21 Loss of less than $25 million. Legend for ‘‘Effective’’ column: ama=awards made after; ara=amounts received after; asda=annuity starting date after; aloIRSg=after Issuance of Internal Revenue Service guidance; bia DOE=bonds issued after date of enactment; cc/ tyea/E=contracts completed in taxable years ending after date of enactment; cela=contracts entered into after;cla=cash leases after; da=distributions after; dda=decedents dying after; DDA=disasters declared after; dda DOE=decedents dying after date of enactment; dda/gma=decedents dying after and gifts made after; DOE=date of enactment; eall GATT=effective as if included in GATT; eall OBRA’90=effective as if included in the Omnibus Budget Reconciliation Act of 1990; eall OBRA’93=effective as if included in the Omnibus Budget Reconciliation Act of 1993; fcqa DOE=first calendar quarter after date of enactment; fcq DOE+180 days=beginning of first calendar quarter that starts at least 180 days after date of enactment; ga DOE=gifts after date of enactment; gira=gross income received after; gsta=generation skipping transfers after; ica=involuntary conversion after; lpoaa=interest paid or accrued after; lia=levies issued after; lida=leasehold improvements disposed of after; lma=loans made after; lyba=limitation years beginning after; pca DOE=proceeding commenced after date of enactment; pma=payments made after; polda=payments on interest due after; ppisa=property placed in service after; pplso/a/b DOE=property placed in service on, after, or before date of enactment; pra=payments received after; pra/cdoa=payments received after, for crop damage occurring after; ptoo/a=prohibited transactions occurring on or after; pyba=plan years beginning after; pybb=plan years beginning before; sa=sales after; sea=sales and exchanges after; sla DOE=summonses issued after date of enactment; spa=services performed after; ta=transfers after; ta DOE=transfers after date of enactment; tyba=taxable years beginning after; tyba DOE=taxable years beginning after date of enactment; tybo/a DOE=taxable years beginning on or after date of enactment; tyea=taxable years ending after;tyea DOE=taxable years ending after date of enactment; tyeo/a=taxable years ending on or after; yba=years beginning after. Note.—Details may not add to totals due to rounding. Source: Joint Committee on Taxation.

ESTIMATED BUDGETARY EFFECTS OF THE CONFERENCE AGREEMENT TO THE BALANCED BUDGET RECONCILIATION ACT OF 1995—TITLE XII, TEACHING HOSPITALS AND GRADUATE MEDICAL EDUCATION; ASSET SALES; WELFARE; AND OTHER PROVISIONS ESTIMATED BUDGETARY EFFECTS OF THE CONFERENCE AGREEMENT TO THE BALANCED BUDGET RECONCILIATION ACT OF 1995—TITLE XII, TEACHING HOSPITALS AND GRADUATE MEDICAL EDUCATION; ASSET SALES; WELFARE; AND OTHER PROVISIONS [By fiscal year, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

ASSET SALES a Subtitle F: National Defense Stockpile: Budget Authority ...... ¥21 ...... ¥79 ¥79 ¥79 ¥80 ¥155 ¥156 ¥649 Outlays ...... ¥21 ...... ¥79 ¥79 ¥79 ¥80 ¥155 ¥156 ¥649 DIRECT SPENDING Subtitle A: Block Grants for Temporary Assistance for Needy Families: Budget Authority ...... ¥164 ...... ¥1,223 ¥1,489 ¥1,826 ¥2,215 ¥2,117 ¥2,394 ¥11,428 Outlays ...... ¥690 ...... ¥993 ¥1,224 ¥1,521 ¥2,080 ¥2,062 ¥2,359 ¥10,929 Subtitle B: Supplemental Security Income: Budget Authority ...... ¥51 ...... ¥1,258 ¥1,896 ¥2,457 ¥3,029 ¥2,805 ¥3,290 ¥14,766 Outlays ...... 13 ...... ¥1,168 ¥1,916 ¥2,398 ¥2,988 ¥2,784 ¥3,270 ¥14,511 Subtitle C: Child Support: Budget Authority ...... 104 ...... ¥36 75 51 4 43 ¥124 117 Outlays ...... 104 ...... ¥36 75 51 4 43 ¥124 117 Subtitle D: Restricting Welfare and Public Benefits for Legal Aliens: Budget Authority ...... ¥125 ...... ¥2,800 ¥3,645 ¥3,615 ¥3,815 ¥3,345 ¥3,640 ¥20,985 Outlays ...... ¥125 ...... ¥2,800 ¥3,640 ¥3,610 ¥3,815 ¥3,340 ¥3,640 ¥20,970 Subtitle E: Teaching Hospitals and Graduate Medical Education Trust Fund: Budget Authority ...... 0 ...... 1,100 1,300 2,000 2,600 3,100 3,400 13,500 Outlays ...... 0 ...... 1,100 1,300 2,000 2,600 3,100 3,400 13,500 Subtitle G: Child Protection Block Grant Programs and Foster Care and Adoption Assist- ance: Budget Authority ...... 1,399 ...... ¥329 ¥373 ¥424 ¥470 ¥521 ¥559 ¥1,277 Outlays ...... 1,610 ...... ¥176 ¥349 ¥403 ¥449 ¥493 ¥537 ¥797 Subtitle H: Child Care: Budget Authority ...... 1,026 ...... 1,240 1,320 1,400 1,500 1,625 1,745 9,856 Outlays ...... 909 ...... 1,219 1,312 1,392 1,490 1,613 1,733 9,668 Subtitle I: Child Care Nutrition Programs: Budget Authority ...... ¥124 ...... ¥634 ¥749 ¥843 ¥904 ¥1,004 ¥1,114 ¥5,372 November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17271 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 1996–2000 1996–2002

Outlays ...... ¥110 ...... ¥583 ¥730 ¥828 ¥891 ¥990 ¥1,095 ¥5,207 Subtitle J: Food Stamps and Commodity Distribution: Budget Authority ...... ¥918 ...... ¥3,023 ¥3,739 ¥4,315 ¥4,860 ¥5,437 ¥6,060 ¥28,352 Outlays ...... ¥918 ...... ¥3,023 ¥3,739 ¥4,315 ¥4,860 ¥5,437 ¥6,060 ¥28,352 Subtitle K: Miscellaneous: Budget Authority ...... ¥20 ...... ¥580 ¥580 ¥585 ¥585 ¥585 ¥585 ¥3,520 Outlays ...... ¥20 ...... ¥524 ¥580 ¥585 ¥585 ¥585 ¥585 ¥3,464 Subtitle L: Reform of the Earned Income Credit: Budget Authority ...... ¥163 ...... ¥3,268 ¥3,513 ¥3,756 ¥4,045 ¥4,290 ¥4,459 ¥23,494 Outlays ...... ¥163 ...... ¥3,268 ¥3,513 ¥3,756 ¥4,045 ¥4,290 ¥4,459 ¥23,494 Subtitle M: Clinical Laboratories: Budget Authority ...... b ...... b b b b b b b Outlays ...... b ...... b b b b b b b Subtotal, Direct Spending: Budget Authority ...... 964 ...... ¥10,811 ¥13,279 ¥14,370 ¥15,809 ¥15,336 ¥17,080 ¥85,721 Outlays ...... 610 ...... ¥10,232 13,004 ¥13,973 ¥15,619 ¥15,225 ¥16,996 ¥84,439 Total Mandatory Spending (Asset Sales plus Direct Spending): Estimated Budget Authority ...... 943 ...... ¥10,890 ¥13,358 ¥14,449 ¥15,889 ¥15,491 ¥17,236 ¥86,370 Estimated Outlays ...... 589 ...... ¥10,311 ¥13,083 ¥14,052 ¥15,699 ¥15,380 ¥17,152 ¥85,088 REVENUES Subtitle L: Reform of the Earned Income Credit: Revenues ...... 60 ...... 1,183 1,294 1,391 1,493 1,627 1,845 8,893

a Under the 1996 budget resolution, proceeds from asset sales are counted in the budget totals for purposes of Congressional scoring. Under the Balanced Budget Act, however, proceeds from asset sales are not counted in determining compliance with the discretionary spending limits or pay-as-you-go requirement. b CBO cannot estimate whether this proposal would, on balance, increase or decrease spending for Medicare.

Mr. EXON. Turning to the second 5 This basis of extraneousness depends on the bal- for purposes of this provision. It could, however, ance of the title in which the drafters locate a provi- contribute to a finding that a spending increase or point of order, sion. Consequently, attentive drafters can avoid this a positive revenue decrease in that legislation vio- If my colleagues consider the issue violation by combining or rearranging the contents lated this rule. fairly, I believe they will agree that of titles so as to ensure that no title worsens the H.R. CONF. REP. No. 100–313, 100th Cong., 1st Sess. the tax title violates section deficit in any out-year. 65 (1987), reprinted in 1987 U.S.C.C.A.N. 739, 765. 6 Section 205(b) of the Balanced Budget and Emer- 313(b)(1)(E) of the Budget Act. That gency Deficit Control Reaffirmation Act of 1987 Mr. EXON. And I say to my col- subparagraph prohibits provisions that added subparagraph (E). Pub. L. No. 100–119, § 205(b), leagues that the tax title in the rec- balloon the deficit in the out-years, un- 101 Stat. 754, 784–85 (1987). The joint statement of managers in the conference report on that bill stat- onciliation conference report creates less the loss is offset by out-year sav- ed with regard to subparagraph (E): enormous loses in the out-years. Just ings from other provisions contained in 6. Extraneous Provisions in Reconciliation Legis- look at the capital gains provisions, for the same title. I ask unanimous con- lation Current Law: example, which lose nearly $12 billion sent that the text and legislative his- Title XX of the Consolidated Omnibus Budget in 2002, over $13 billion in 2003, and tory of section 313(b)(1)(E) of the Budg- Reconciliation Act of 1985 (P.L. 99–272), as amended nearly $16 billion in 2004. And these et Act be printed in the RECORD. by Section 7006 of the Omnibus Budget Reconcili- ation Act of 1986 (P.L. 99–509), established a tem- numbers are from the Joint Committee There being no objection, the mate- porary rule in the Senate—referred to as the ‘‘Byrd on Taxation, which understates the rial was ordered to be printed in the Rule’’—to exclude extraneous matter from reconcili- losses from capital gains relative to RECORD, as follows: ation legislation. The rule specifies the types of pro- the estimates of the Treasury Depart- visions considered to be extraneous, provides for a 1 (E) a provision shall be considered to be point of order against the inclusion of extraneous ment. extraneous if it increases, or would increase, matter in reconciliation measures, and requires a In total, the tax breaks in this bill 2 net outlays, or if it decreases, or would de- three-fifths vote of the Senate to waive or appeal worsen the deficit by over $47 billion in crease, revenues during a fiscal year after the point of order. The rule expires on January 2, the fiscal years covered by such reconcili- 1988. 2003, over $51 billion in 2004, and nearly ation bill or reconciliation resolution,3 and Senate Amendment: $57 billion in 2005. These tax cuts con- The Senate amendment (Section 228) amends the 4 tinue in the out-years to dig us into a such increases or decreases are greater than Byrd Rule (which applies only in the Senate) to in- outlay reductions or revenue increases re- clude in the definition of extraneous matter provi- deeper and deeper hole. Over 10 years, sulting from other provisions in such title 5 sions which increase net outlays or decrease reve- the Republican tax cuts worsen the def- in such year; 6 nues during a fiscal year beyond those fiscal years icit by nearly $382 billion. covered by the reconciliation measure and which re- FOOTNOTES sult in a net increase in the deficit for that fiscal Mr. President, I ask unanimous con- 1 Section 205(b) of the Balanced Budget and Emer- year. The Senate amendment also extends the expi- sent that a table prepared by the Joint gency Deficit Control Reaffirmation Act of 1987 ration date of the Byrd Rule to September 30, 1992. Committee on Taxation displaying the added subparagraph (E). Pub. L. No. 100–119, § 205(b), Conference Agreement: 101 Stat. 754, 784–85 (1987). The House recedes and concurs in the Senate 10-year effects of these tax breaks be 2 Section 3(1) defines ‘‘outlays.’’ amendment. This rule applies only in the Senate. printed in the RECORD at this point. 3 Section 310(b) defines ‘‘reconciliation resolu- It is the intent of the conferees that expiration There being no objection, the mate- tion.’’ after the reconciliation period of a revenue increase 4 The Congressional Budget Act makes no excep- or extension provided for in a reconciliation bill rial was ordered to be printed in the tion for violations of negligible amounts. would not, of itself, be considered a revenue decrease RECORD, as follows: CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1 [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

CONTRACT WITH AMERICA PROVISIONS I. Family tax relief provisions: 1. $500 tax credit for children 10/1/95 ¥4,449 ¥28,355 ¥22,529 ¥22,761 ¥22,996 ¥23,169 ¥23,343 ¥20,519 ¥23,697 ¥23,875 ¥101,090 ¥147,602 ¥218,693 under age 18—Senate amend- ment ($75,000/$110,000 phase- out with no indexing). 2. Reduce the marriage penalty ...... tyba 12/31/95 ¥137 ¥474 ¥739 ¥952 ¥1,458 ¥1,970 ¥2,270 ¥3,838 ¥5,074 ¥6,866 ¥3,760 ¥8,000 ¥23,778 3. $5,000 credit for adoption ex- tyba 12/31/95 ¥28 ¥285 ¥302 ¥320 ¥336 ¥337 ¥337 ¥337 ¥339 ¥339 ¥1,271 ¥1,945 ¥2,960 penses—Senate amendment, but phase out beginning at $75,000 AGI; require finalized adoption only for foreign adoptions; spe- cial needs adoptions—House bill. 4. $1,000 deduction (with residency tyba 12/31/95 ¥74 ¥115 ¥119 ¥124 ¥129 ¥134 ¥138 ¥142 ¥146 ¥151 ¥561 ¥833 ¥1,271 and support tests) for custodial care of certain elderly depend- ents in taxpayer’s home. S 17272 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

II. Savings and investment provisions: 1. Provisions relating to individual tyba 12/31/95 ¥221 ¥487 ¥100 ¥990 ¥1,817 ¥3,332 ¥4,807 ¥5,770 ¥6,860 8,164 ¥3,615 ¥11,755 ¥32,549 Retirement Arrangements—(a) deductible IRAs—Senate amend- ment, except increase phaseout range for joint filers in $2,500 increments; Homemakers eligible for full IRA deduction—both House bill and Senate amend- ment; (b) back-end IRAa—House bill with coordination of contribu- tion limits; (c) definition of spe- cial purpose withdrawals—Sen- ate amendment; (d) penalty free withdrawals from deductible IRAs—Senate amendment. 2. Capital gains reforms: (a) indi- vidual capital gains—House bill; (b) small business stock—14% maximum rate for individuals, reduced corporate rate; (c) index- ing of capital gains—House bill, with 6-year delay of effective date; (d) corporate capital gains—Senate amendment; and (e) capital loss deducation for sale of principal residence— House bill: a. Corporate ...... tyea 12/31/94 ¥1,009 ¥893 ¥912 ¥945 ¥971 ¥1,024 ¥1,129 ¥1,188 ¥1,246 ¥1,307 ¥4,730 ¥6,883 ¥10,624 b. Individual ...... tyea 12/31/94 2,857 ¥2,677 ¥6,757 ¥7,546 ¥8,191 ¥7,990 ¥1,450 ¥10,483 ¥12,166 ¥14,483 ¥22,314 ¥28,854 ¥65,986 3. Alternative minimum tax (AMT) ppisa & tyba 12/31/95 ¥1,290 ¥3,149 ¥3,722 ¥3,248 ¥2,141 ¥1,487 ¥1,252 ¥1,015 ¥985 ¥1,000 ¥13,550 ¥16,291 ¥19,291 Reform—Senate amendment, ex- cept conform depreciation lives and methods under AMT and, with respect to certain minimum tax credits, substitute 7 years for 5 years. III. Health care provisions: 1. Treatment of long-term care in- 1/1/96 ¥860 ¥556 ¥659 ¥751 ¥846 ¥951 ¥1,061 ¥1,166 ¥1,289 ¥1,401 ¥3,672 ¥5,684 ¥9,540 surance—House bill, but adopt Senate provision providing no cap on indemnity policies, permit penalty-free (not tax-free) 401(k) and IRA withdrawals, $175 per day cap on per diem benefits, and adopt Senate consumer pro- tections. 2. Tax treatment of accelerated 1/1/96 ¥6 ¥67 ¥107 ¥166 ¥214 ¥265 ¥316 ¥376 ¥446 ¥481 ¥560 ¥1,141 ¥2,442 death benefits under life insur- ance contracts—House bill, but adopt Senate rule relating to NAIC guidelines. 3. Health insurance organizations tyea 10/13/95 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥8 ¥12 eligible for benefits of section 833—Senate amendment. 4. Increase tax-free death benefit ceia 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) limit on burial insurance po- lices—Senate amendment. IV. Estate and gift tax provisions: 1. Phase up unified credit to dda/gma 12/31/95 ...... ¥333 ¥663 ¥1,020 ¥1,401 ¥1,805 ¥2,154 ¥2,379 ¥2,864 ¥3,136 ¥3,417 ¥7,376 ¥15,755 $750,000—House bill with 6- year phase in with indexing thereafter; index $10,000 annual gift tax exclusion; $750,000 spe- cial use valuation; generation- skipping tax; and indexing of $1 million value of closely held businesses under section 6601j. 2. Reduction in estate taxes for dda 12/31/95 ...... ¥490 ¥579 ¥680 ¥798 ¥934 ¥1,081 ¥1,295 ¥1,513 ¥1,766 ¥2,547 ¥4,562 ¥9,136 qualified businesses after unified credit increase—Senate amend- ment, but change thresholds to $1 million/$1.5 million and co- ordinate with section 2032A and section 6166. 3. Provide a 40% exclusion from dda 12/31/95 ...... ¥42 ¥47 ¥51 ¥60 ¥67 ¥74 ¥81 ¥90 ¥99 ¥200 ¥340 ¥610 estate taxes for property donated subject to a conservation ease- ment (within 25 miles of a met- ropolitan statistical area or a national park or wilderness area; or within 10 miles of an Urban National Forest). 4. Clarify cash leases under section cla 12/31/95 ...... ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥8 ¥12 ¥18 2032A—Senate amendment. V. Job creation and wage enhancement provisions: 1. Leasehold improvements provi- llda 3/13/95 ¥34 ¥230 ¥17 ¥15 ¥12 ¥9 ¥6 ¥3 - ¥3 ¥98 ¥114 ¥114 sion—House bill. 2. Small business incentives— ppisa 12/31/95 ¥191 ¥379 ¥470 ¥553 ¥554 ¥550 ¥489 ¥360 ¥240 ¥150 ¥2,147 ¥3,186 ¥3,936 House bill, but modify increase in expensing limitation for small businesses to $19,000 for 1996, $20,000 for 1997, $21,000 for 1998, $22,000 for 1999, $23,000 for 2000, $24,000 for 2001, and $25,000 for 2002 and thereafter.

Subtotal: Contract With Amer- ¥5,443 ¥38,325 ¥37,725 ¥40,125 ¥41,927 ¥44,027 ¥37,010 ¥51,955 ¥56,958 ¥63,218 ¥163,545 ¥244,586 ¥416,715 ica related provisions.

VI. Expiring provisions: 1. Provisions extended through 12/ 31/96: a. Work opportunity tax cred- 1/1/96 ¥64 ¥107 ¥65 ¥25 ¥10 ¥2 ...... ¥271 ¥274 ¥274 it—Senate amendment, with modifications 3. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17273 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

b. Employer-provided edu- 1/1/95 ¥611 ¥288 ...... ¥899 ¥899 ¥899 cational assistance; applies to undergraduate education only after 1995. c. R&E credit—House bill ...... 7/1/95 ¥1,322 ¥842 ¥387 ¥275 ¥165 ¥42 ...... ¥2,991 ¥3,033 ¥3,033 d. Orphan drug tax credit— 1/1/95 ¥35 ¥10 ¥2 ¥1 ¥1 (2) (2) (2) (2) (2) ¥49 ¥50 ¥51 Senate amendment. e. Contribution of appreciated 1/1/95 ¥107 ¥18 ¥6 ...... ¥130 ¥130 ¥130 stock to private foundations. 2. Commercial aviation fuel: extend 10/1/95 ¥417 ¥439 ¥6 ...... ¥863 ¥863 ¥863 4.3 cents/gallon exemption through 9/30/97; but conditional on extension of Airport and Air- way Trust Fund taxes. 3. Extend all Airport and Airway 1/1/96 No revenue effect Trust Fund excise taxes through 9/30/96—House bill 4. 4. Extend IRS user fees through 9/ 10/1/00 ...... 35 35 ...... 70 70 30/02 5—Senate amendment. 5. Sunset the low-income housing DOE ¥24 ¥29 64 333 674 1,046 1,431 1,822 2,218 2,617 1,018 3,494 10,152 tax credit after 12/31/97; sunset national pool after 12/31/95— House bill. 6. Superfund and oil spill liability taxes: a. Extend Superfund excise DOE 319 16 ...... 335 335 335 taxes through 9/30/96; re- ceipts go to general reve- nues after 7/31/96. b. Extend Superfund AMT DOE 290 193 ...... 483 483 483 through 12/31/96 6. c. Extend oil spill tax through 1/1/96 ...... 60 60 ...... 120 120 9/30/02—Senate amend- ment. 7. Extend excise tax refund author- DOE Negligible revenue effect ity for alcohol fuels blenders— Senate amendment. 8. Extend section 29 binding con- DOE ...... ¥30 ¥81 ¥97 ¥93 ¥96 ¥101 ¥106 ¥111 ¥117 ¥301 ¥499 ¥833 tract date 6 months from date of enactment and placed-in-service date to 12/3/97 for biomass and coal. 9. Exempt from diesel dyeing re- fcqa DOE (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥3 ¥4 ¥6 quirement any States exempt from Clean Air Act dyeing re- quirement (permanent). 10. Suspend tax on diesel fuel for 1/1/96 ¥24 ¥27 ¥4 ¥4 ¥1 ...... ¥60 ¥61 ¥61 recreational boats—Senate amendment (through 6/30/97). 11. Permanent extension of FUTA 1/1/95 ¥5 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥17 ¥23 ¥32 exemption for alien agricultural workers 5—House bill. 12. Information Sharing Provision: DOE ...... 14 28 42 56 ...... 42 140 140 Extension of disclosure of return Information to Department of Veterans Affairs (outlay reduc- tion) 5—House bill, except extend through 9/30/02 only. VII. Medical savings accounts: 1. Medical Savings Accounts— tyba 12/31/95 ¥122 ¥211 ¥258 ¥307 ¥362 ¥391 ¥421 ¥451 ¥483 ¥515 ¥1,260 ¥2,072 ¥3,522 House bill, except follow the Sen- ate amendment with respect to (a) maximum contribution limit ($2,000 single and $4,000 fam- ily); (b) tax-free build up of earnings; (c) definition of quali- fied medical expenses; (d) post- death distribution rules; and (e) clarification relating to capital- ization of policy acquisition costs. VIII. Taxpayer bill of rights 2: 1. Expansion of authority to abate DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (8) (8) interest. 2. Extension of interest-free period 6/30/96 ¥2 ¥7 ¥8 ¥8 ¥8 ¥9 ¥9 ¥9 ¥10 ¥10 ¥10 ¥51 ¥80 for payment of tax—House bill. 3. Joint return may be made after tyba DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (8) (8) separate returns without full payment of tax. 4. Increase levy exemption 9 ...... lia 12/31/95 (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (10) (8) 5. Offers-in-compromise—Senate DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (8) (8) amendment. 6. Increased limit on attorney DOE ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥7 ¥10 fees—House bill. 7. Award of litigation costs per- pca DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (8) (8) mitted in declaratory judgment proceedings. 8. Increase in limit on recovery of DOE ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥3 ¥15 ¥21 ¥30 civil damages—House bill. 9. Enrolled agents included as sla DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (8) (8) (8) third-party recordkeepers. 10. Annual reminders to taxpayers 1/1/96 (11) (11) (11) (11) (11) (11) (11) (11) (11) (11) (12) (12) (12) with delinquent accounts. IX. Casualty and involuntary conversion provision: 1. Change involuntary conversion DDA 12/31/94 ¥6 ¥14 ¥10 ¥10 ¥10 ¥10 ¥10 ¥10 ¥10 ¥10 ¥50 ¥70 ¥100 rules for Presidentially declared disaster areas—Senate amend- ment. X. Exempt and charitable organizations provisions: 1. Provide tax-exempt status to tyea 12/31/95 ¥4 ¥6 ¥6 ¥7 ¥7 ¥7 ¥8 ¥8 ¥8 ¥9 ¥30 ¥45 ¥70 common investment funds—Sen- ate amendment. 2. Exclusion from UBIT for certain pra 12/31/95 Negligible revenue effect corporate sponsorship pay- ments—Senate amendment. 3. Intermediate sanctions for cer- 9/14/95 1/1/96 4 4 4 5 5 5 6 6 6 7 22 33 52 tain tax-exempt organizations— House bill, with technical modi- fications. S 17274 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

XI. Corporate and other reforms: 1. Reform the tax treatment of cer- da 5/3/95 ¥83 ¥100 ¥17 84 209 343 437 475 514 582 93 873 2,444 tain corporate stock reemptions—House bill. 2. Require corporate tax shelter re- aiolRSg (12) (12) (12) (12) (12) (12) (12) (12) (12) (12) (13) (13) (14) porting; modify recipient notice to 90 days. 3. Disallow interest deduction for ipoaa 10/31/95 220 579 883 1,369 1,749 1,856 1,895 1,901 1,924 1,940 4,800 8.551 14,316 corporate-owned life insurnce policy loans—Senate amend- ment, but phase out disallow- ance (90% in 1996, 80% in 1997, and 70% in 1998; cap borrowing at 20,000 lives); cap interest rate (with special rules for grandfathered plans); excep- tion for key person policies with 10 lives; limit borrowing in 1996 to policies purchased in 1994 and 1995. 4. Phase out preferential tax defer- (15) 26 37 38 39 40 41 42 43 44 44 179 261 392 ral for certain large farm cor- porations required to use accrual accounting. 5. Phase-in repeal of section 936; tyba 12/3/95 255 605 552 596 498 516 746 1,116 1,390 1,681 2,506 3,766 7,953 Wage credit companies—6 years of present law and then House bill with modified base period; income companies—2 years of present law and then House bill with modified base period; QPSII—repealed 1/1/96. 6. Corporate accounting—reform of ppisa 9/13/95 32 69 29 13 14 16 19 22 28 31 157 192 273 income forecast method—Senate amendment. 7. Permit transfers of excess pen- ta DOE 1,439 1,375 958 554 195 151 ¥19 ¥13 ¥20 ¥27 4,521 4,651 4,591 sion assets—House bill but (a) require asset cushion equal to the greater of (i) 125% of termi- nation liability (using PBGC as- sumptions) and (ii) the plan’s accrued liability; (b) permit with- drawals only for ERISA-covered benefits; (c) prohibit transfers when company in bankruptcy; (d) no excise tax; (e) extend for 1 additional year; and (f) conform present-law section 420 asset cushion. 8. Modify exclusion of damages re- ama 12/31/95 34 51 55 59 61 64 68 71 74 77 260 392 614 ceived on account of personal in- jury or sickness—Senate amend- ment, with technical clarifica- tions. 9. Require tax reporting for pay- pma 12/31/96 ...... (12) (12) (12) (12) (12) (12) (12) (12) (12) (13) (13) (14) ments to attorneys; delay effec- tive date for 1 year. 10. Expatriation tax provisions— 2/6/95 64 97 146 199 254 289 304 319 335 351 760 1,353 2,358 House bill. 11. Remove business exclusion for ara 12/31/95 30 96 100 104 107 109 111 113 115 116 437 657 1,000 energy subsidies provided by public utilties—House bill, but modify effective date. 12. Modify basis adjustment rules ica 9/13/95 2 4 6 9 14 20 29 37 46 56 35 84 223 under section 1033. 13. Modify the exception to the re- ica 9/13/95 1 2 4 6 8 11 13 15 17 19 21 45 96 lated party rule of section 1033 for individuals to only provide an exception for de minimis amounts ($100,000). 14. Disallow rollover under section tyea 12/31/95 1 3 4 5 6 8 9 10 11 13 19 35 69 1034 to extent of previously claimed depreciation for home office or other depreciable use of residence. 15. Provide that rollover of gain on sea 12/31/95 (16) (16) (16) (16) (16) (16) (16) (16) (16) (16) (16) (16) (16) sale of a principal residence cannot be elected unless the re- placement property purchased is located within the United States (limit to resident aliens who ter- minate residence within 2 years). 16. Repeal exemption for withhold- 1/1/96 20 6 6 6 6 7 7 7 7 8 44 58 80 ing on gambling winnings from bingo and keno where proceeds exceed $5,000. 17. Repeal tax credit for contribu- DOE 1 1 2 2 2 2 2 2 2 2 8 12 18 tions to special Community De- velopment Corporations. 18. Repeal advance refunds of die- 1/1/96 8 19 19 19 19 19 19 19 19 19 84 122 179 sel fuel tax for diesel cars and light trucks. 19. Apply failure to pay penalty to DOE 1 3 29 30 32 33 35 37 38 40 95 163 278 substitute returns. 20. Allow conversion of scholarship DOE 3 4 6 8 10 10 9 7 6 5 31 48 67 funding corporation to taxable corporation—House bill. 21. Apply look-through rule for pur- gira 12/31/95 7 23 24 27 30 32 34 37 40 44 111 177 298 poses of characterizing certain subpart F insurance income as UBIT—House bill. 22. Repeal 50% Interest Income ex- ima 10/13/95 27 69 109 149 187 224 261 295 331 365 541 1,026 2,019 clusion for financial institution loans to ESOPs—Senate amend- ment. 23. Modify the ozone depleting DOE (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (10) (17) (7) chemicals tax for imported recy- cled halons—Senate amendment. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17275 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

24. Modify two county tax-exempt DOE (16) 1 2 3 4 5 6 8 9 10 10 22 49 bond rule for local furnishers of electricity or gas—Senate amendment. 25. Provide tax-exempt bonds sta- bia DOE (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥4 ¥8 ¥12 tus for Alaska Power Administra- tion sale—Senate amendment. 26. Modify treatment of foreign (18) 93 162 171 180 188 197 206 214 223 245 794 1,197 1,879 trusts—Senate amendment. 27. Provide for flow through treat- DOE 34 18 10 5 2 ...... ¥2 ¥4 ¥6 ¥8 69 67 49 ment for Financial Asset Securitization Investment Trusts (FASITs)—Senate amendment. 28. Tax-free treatment of contribu- (19) ¥16 ¥26 ¥12 4 19 32 43 51 61 71 ¥31 43 226 tions in aid of construction for water utilities; change deprecia- tion for water utilities—Senate amendment. 29. Provide 3-year amortization of tyeo/a 1/1/95 ¥11 ¥14 ¥8 ¥4 ...... ¥37 ¥37 ¥37 intrastate operating rights of truckers—Senate amendment. 30. A life insurance company may tyba 12/31/94 1 (16) (2) ¥1 (2) (16) (16) (16) (2) ¥2 (16) 1 ¥2 elect to treat 20% of capital losses as ordinary income, spread over 10 years; the tax- payer has the option to change the treatment of these losses in the future—Senate amendment, with modifications. 31. Clarify that newspaper carriers spa 12/31/95 Negligible revenue effect and distributors are independent contractors—Senate amendment. 32. Allow for tax-free conversion of ta 12/31/95 ¥4 ¥9 ¥8 ¥8 ¥8 ¥8 ¥8 ¥8 ¥9 ¥9 ¥37 ¥52 ¥78 common trust funds to mutual funds—Senate amendment. 33. Eliminate interest allocation ex- tyba 12/31/95 41 93 107 123 141 163 187 201 215 228 505 855 1,499 ception for certain nonfinancial corporations—Senate amend- ment. 34. Modify depreciation for small ppiso/a/b DOE ¥1 ¥4 ¥23 ¥26 ¥29 ¥16 ¥19 ¥22 ¥24 ¥27 ¥83 ¥118 ¥191 motor fuel/convenience store out- lets—Senate amendment. 35. Repeal of section 593 with resi- tyba 12/31/95 63 95 216 280 277 272 260 250 243 236 931 1,462 2,192 dential loan test for 1996 and 1997. 36. Phase out and extend luxury 1/1/96 ¥41 ¥97 ¥159 ¥204 179 265 200 46 ...... ¥322 143 188 automobile excise tax through 12/31/02. XII. Technical correction provision: Luxury DOE 14 ...... 14 14 14 Excise Tax Indexing. XIII. Simplification provisions relating to individuals: 1. Rollover of gain on sale of prin- cipal residence: a. Multiple sales within roll- sa DOE ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥3 ¥3 ¥9 ¥14 ¥23 over period—House bill. b. Rules in case of divorce— sa DOE ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥3 ¥4 ¥4 ¥4 ¥11 ¥17 ¥29 House bill. 2. One-time exclusion on the sale of sa 9/13/95 ¥10 ¥19 ¥20 ¥21 ¥22 ¥23 ¥24 ¥25 ¥26 ¥27 ¥92 ¥139 ¥217 a principal residence by an indi- vidual who has attained age 55 (allow additional exclusion for married couples under certain conditions where one spouse has claimed an exclusion prior to their marriage)—House bill. 3. Treatment of certain reimbursed tyba 12/31/95 (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥5 ¥6 ¥11 expenses of rural mail carriers— House bill. 4. Travel expenses of Federal em- tyea DOE (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 ¥2 ployee participating in a Federal criminal investigation—House bill. 5. Treatment of storage of product tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥2 ¥3 samples—House bill. XIV. Pension simplification provisions: A. Simplified Distribution Rules: 1. Sunset of 5-year income tyba 12/31/98 24 74 63 109 80 42 17 16 ...... 350 409 425 averaging for lump-sum distributions—Senate amendment. 2. Repeal of $5,000 exclusion tyba 12/31/95 16 46 49 52 54 55 55 56 57 57 217 328 498 of employees’ death bene- fits. 3. Simplified method for tax- asda 12/31/95 10 28 28 28 29 29 29 30 30 31 123 182 273 ing annuity distributions under certain employer plans—Senate amendment. 4. Minimum required distribu- yba 12/31/95 ¥1 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥17 ¥25 ¥37 tion. B. Increased Access to Pension yba 12/31/96 ...... ¥8 ¥22 ¥24 ¥25 ¥26 ¥28 ¥29 ¥30 ¥31 ¥79 ¥133 ¥223 Plans—Tax-exempt organizations eligible under section 401(k)— Senate amendment, but permit all tax exempts and Indian tribes to have 401(k) plans. C. Nondiscrimination Provisions: 1. Simplified definition of yba 12/31/95 Considered in other provisions highly compensated em- ployees—House bill, with modifications. 2. Repeal of family aggrega- yba 12/31/95 Considered in other provisions tion rules. 3. Modification of additional yba 12/31/95 Negligible revenue effect participation requirements. S 17276 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

4. Safe-harbor nondiscrimina- yba 12/31/98 ...... ¥42 ¥162 ¥167 ¥171 ¥176 ¥182 ¥187 ¥204 ¥541 ¥1,085 tion rules for qualified cash or deferred arrangements and matching contributions [20]—Senate amendment, with modification. D. Miscellaneous pension sim- plification: 1. Treatment of leased em- yba 12/31/95 Negligible revenue effect ployees—Senate amend- ment. 2. Plans covering self-em- yba 12/31/95 Negligible revenue effect ployed individuals. 3. Elimination of special vest- yba 12/31/95 (2) ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥4 ¥6 ¥9 ing rule for multiemployer plans. 4. Distributions under rural DOE Negligible revenue effect cooperative plans—Senate amendment, with modifica- tions. 5. Treatment of governmental tybo/a DOE Negligible revenue effect plans under section 415— House bill, with Senate ef- fective date. 6. Uniform retirement age ...... 1/1/96 Considered in other provisions 7. Contributions on behalf of yba 12/31/95 Negligible revenue effect disabled employees. 8. Treatment of deferred com- tyba 12/31/95 (2) ¥1 ¥1 ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥4 ¥8 ¥14 pensation plans of State and local governments and tax-exempt organizations— House bill, with modifica- tion. 9. Require Individual owner- DOE ¥6 ¥18 ¥21 ¥24 ¥25 ¥25 ¥26 ¥27 ¥28 ¥29 ¥94 ¥145 ¥229 ship of section 457 plan assets—House bill, with effective date change (i.e., to the end of the first leg- islative session after enact- ment). 10. Correction of GATT interest eall GATT ¥4 ¥4 ¥4 ¥4 ...... ¥16 ¥16 ¥16 and mortality rate provi- sions in the Retirement Protection Act—House bill, with modifications. 11. Multiple salary reduction tyba 12/31/95 Negligible revenue effect agreements permitted under section 403(b). 12. Repeal of combined plan yba 12/31/98 ...... ¥70 ¥189 ¥195 ¥201 ¥207 ¥213 ¥219 ¥259 ¥654 ¥1,293 limit—House bill, with Sen- ate effective date. 13. Modify notice required of pyba 12/31/95 Negligible revenue effect right to qualified joint and survivor annuity—House bill. 14. 3-year waiver of excess 1/1/96 38 40 43 3 ...... 124 124 124 distribution tax—Senate amendment. 15. Definition of compensation yba 12/31/97 ...... ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥3 ¥4 ¥8 ¥15 for section 415 purposes— Senate amendment. 16. Increase section 4975 ex- ptoo/a 1/1/96 1 4 4 4 4 4 4 4 4 4 17 24 36 cise tax on prohibited transactions from 5% to 10%—Senate amendment. 17. Treatment of Indian tribal pybb 1/1/95 Negligible revenue effect governments under section 403(b)—Senate amend- ment provision and permit rollover to 401(k). 18. Application of elective de- tyba 12/31/95 Negligible revenue effect ferral limit to section 403(b) plans—Senate amendment, with modifica- tions. 19. Establish SIMPLE pension yba 12/31/95 ¥45 ¥69 ¥71 ¥74 ¥76 ¥79 ¥82 ¥85 ¥88 ¥91 ¥335 ¥497 ¥761 plan—Senate amendment, but repeal SEPs. 20. Increase the self-employed tyba 12/31/97 ...... ¥36 ¥113 ¥168 ¥272 ¥399 ¥644 ¥694 ¥746 ¥317 ¥988 ¥3,072 health insurance deduction (35% in 1998 and 1999; 40% in 2000 and 2001; and 50% in 2002 and thereafter). XV. Partnership simplification provisions: 1. Simplified reporting to part- tyba 12/31/95 5 6 6 7 7 7 7 8 8 8 31 45 69 ners—House bill, but elective. 2. Returns required on magnetic tyba 12/31/95 Negligible revenue effect media for partnerships with 100 partners or more—House bill. XVI. Foreign tax simplification provisions: A. Modification of passive foreign tyba 12/31/95 ¥7 ¥18 ¥20 ¥21 ¥22 ¥24 ¥25 ¥26 ¥27 ¥29 ¥88 ¥137 ¥219 investment company provisions to eliminate overlap with subpart F and to allow mark-to-market election—House bill. B. Modifications to provisions af- fecting controlled foreign cor- porations: 1. General provisions—House ¥1 ¥2 ¥2 ¥3 ¥3 ¥3 ¥3 ¥4 ¥4 ¥4 ¥11 ¥17 ¥29 bill. 2. Repeal of excess passive tyba 9/30/95 ¥17 ¥26 ¥29 ¥35 ¥41 ¥45 ¥51 ¥57 ¥64 ¥68 ¥148 ¥244 ¥433 assets provision (section 956A)—House bill. XVII. Other income tax simplification pro- visions: A. Subchapter S corporations: 1. Increase number of eligible tyba 12/31/95 ¥7 ¥12 ¥14 ¥16 ¥20 ¥22 ¥25 ¥28 ¥31 ¥35 ¥69 ¥116 ¥210 shareholders—House bill. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17277 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

2. Permit certain trusts to tyba 12/31/95 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥9 ¥13 ¥21 hold stock in S corpora- tions—House bill. 3. Extend holding period for tyba 12/31/95 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) certain trusts—House bill. 4. Financial Institutions per- tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 mitted to hold safe-harbor debt—House bill. 5. Authority to validate certain tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 invalid elections—House bill. 6. Allow Interim closing of the tyba 12/31/95 Negligible revenue effect books. 7. Expand post-termination tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 period and amend sub- chapter S audit proce- dures—House bill. 8. S corporations permitted to tyba 12/31/95 ¥3 ¥7 ¥9 ¥11 ¥13 ¥15 ¥17 ¥20 ¥23 ¥26 ¥43 ¥75 ¥144 hold S or C subsidiaries— House bill. 9. Treatment of distributions tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 during loss years—House bill. 10. Treatment of S corpora- tyba 12/31/95 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) tions as shareholders in C corporations—House bill. 11. Elimination of certain tyba 12/31/95 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) earnings and profits of S corporations—House bill. 12. Treatment of certain tyba 12/31/95 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) losses carried over under at-risk rules—House bill. 13. Adjustments to basis of dda DOE (11) (11) (11) (11) (11) (11) (11) (11) (11) (11) (11) (11) (11) Inherited S stock—House bill. 14. Treatment of certain real tyba 12/31/95 (2) ¥1 ¥1 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥2 ¥6 ¥10 ¥16 estate held by an S cor- poration—House bill. 15. Transition rule for elec- tyba 12/31/95 (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) tions after termination— House bill. 16. Interaction of subchapter ¥3 ¥10 ¥26 ¥32 ¥37 ¥38 39 ¥40 ¥40 ¥40 ¥108 ¥185 ¥305 S changes—House bill. B. Regulated Investment Companies tyea DOE ¥9 ¥17 ¥20 ¥24 ¥28 ¥32 ¥35 ¥38 ¥41 ¥44 ¥98 ¥164 ¥287 (RICs)—Repeal of 30% gross in- come limitation for RICs—House bill. C. Accounting Provisions: 1. Modifications to look-back cc/tyea/E ¥2 ¥3 ¥3 ¥3 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥15 ¥23 ¥35 method for long-term con- tracts—House bill. 2. Allow traders to adopt DOE Negligible revenue effect mark-to-market accounting for securities—House bill. 3. Modification of Treasury tyba DOE ¥4 ¥4 ¥5 ¥5 ¥5 ¥5 ¥5 ¥4 ¥5 ¥6 ¥23 ¥33 ¥49 ruling requirement for nu- clear decommissioning funds—House bill. 4. Provide that a taxpayer may pra/cdoa 12/31/92 2 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥1 ¥2 ¥4 ¥6 elect to include in income crop insurance proceeds and disaster payments in the year of the disaster or in the following year—Sen- ate amendment. D. Tax-Exempt Bond Provision—Re- bla DOE Negligible revenue effect peal of debt service-based limi- tation on investment in certain non-purpose investments—House bill. E. Insurance Provisions: 1. Treatment of certain insur- tyba 12/31/95 6 ¥4 5 4 4 12 ¥7 ¥16 ¥4 ¥1 15 21 ¥19 ance contracts on retired lives. 2. Treatment of modified tyba 12/31/95 ¥1 2 4 1 2 1 ¥1 ¥1 ¥1 ¥1 8 8 ¥7 guaranteed contracts. F. Other Provisions: 1. Closing of partnership tax- tyba 12/31/95 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 able year with respect to deceased partner—House bill. 2. Modifications to the FICA eaii OBRA ’93 Negligible revenue effect tip credit—House bill. 3. Conform due date for first 1/1/96 Negligible revenue effect quarter estimated tax by private foundations—House bill. 4. Treatment of dues paid to tyba 12/31/94 Negligible revenue effect agricultural or horticultural organizations. 5. Student loan interest de- polda 12/31/95 ¥52 ¥152 ¥157 ¥162 ¥168 ¥174 ¥180 ¥186 ¥193 ¥200 ¥691 ¥1,046 ¥1,624 duction ($2,500 above-the- line deduction; phaseout $45,000–$65,000 singles/ $65,000–$85,000 joint). XVIII. Estate, gift, and trust tax provi- sions: A. Estate and Trust Income Tax Pro- visions: 1. Certain revocable trusts DOE (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (21) (21) (21) treated as part of estate— House bill. 2. Distributions during first 65 DOE Negligible revenue effect days of taxable year of es- tate—House bill. 3. Separate share rules avail- DOE Negligible revenue effect able to estates—House bill. 4. Executor of estate and DOE Negligible revenue effect beneficiaries treated as re- lated persons for disallow- ance of losses—House bill. S 17278 CONGRESSIONAL RECORD — SENATE November 17, 1995 CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF REVENUE RECONCILIATION AND TAX SIMPLIFICATION PROVISIONS OF H.R. 2491 (TITLE XI) 1—Continued [Fiscal years 1996–2005, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

5. Limitation on taxable year DOE Negligible revenue effect of estates—House bill. 6. Simplified taxation of earn- tyba DOE (11) (11) (11) (11) (12) (12) (12) (12) (12) (12) (12) 8 12 ings of pre-need funeral trusts—House bill, with $7,000 limit. B. Estate and gift tax provisions: 1. Clarification of waiver of DOE Negligible revenue effect certain rights of recovery— House bill. 2. Adjustments for gifts within DOE ...... ¥6 ¥6 ¥7 ¥7 ¥7 ¥7 ¥7 ¥7 ¥7 ¥26 ¥40 ¥61 3 years of decedent’s death—House bill. 3. Clarification of qualified DOE Negligible revenue effect terminable interest rules— House bill. 4. Transitional rule under sec- eaii OBRA ’90 Negligible revenue effect tion 2056A—House bill. 5. Opportunity to correct cer- DOE Negligible revenue effect tain failures under section 2032A—House bill. 6. Gifts may not be revalued ga DOE ...... ¥15 ¥16 ¥16 ¥18 ¥21 ¥26 ¥32 ¥38 ¥45 ¥65 ¥112 ¥227 for estate tax purposes after expiration of statute of limitations—House bill. 7. Clarifications relating to DOE ...... ¥2 ¥2 ¥2 ¥2 ¥3 ¥3 ¥3 ¥3 ¥3 ¥8 ¥14 ¥23 disclaimers—House bill. 8. Clarify relationship between DOE ...... ¥3 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥5 ¥5 ¥15 ¥23 ¥37 community property rights and retirement benefits— House bill. 9. Treatment under qualified DOE Negligible revenue effect domestic trust rules of forms of ownership which are not trusts—House bill. C. Generation-skipping tax provi- sions: 1. Taxable termination not to DOE Negligible revenue effect include direct skips—House bill. 2. Modification of generation- gsta 12/31/94 ¥3 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥4 ¥5 ¥19 ¥27 ¥40 skipping transfer tax for transfers to individuals with deceased parents— Senate amendment. XIX. Excise tax simplification provisions: A. Distilled spirits, wines, and beer: 1. Credit or refund for im- fcq DOE+180 days Negligible revenue effect ported bottled distilled spir- its returned to bonded premises—House bill. 2. Fermented material from fcq DOE+180 days Negligible revenue effect any brewery may be re- ceived at a distilled spirits plant—House bill. 3. Refund of tax on wine re- fcq DOE+180 days Negligible revenue effect turned to bond not limited to unmerchantable wine— House bill. 4. Beer may be withdrawn free fcq DOE+180 days Negligible revenue effect of tax for destruction— House bill. 5. Transfer to brewery of beer fcq DOE+180 days Negligible revenue effect imported in bulk without payment of tax—House bill. B. Consolidate imposition of avia- 1/1/96 (16) ...... (16) (16) (16) tion gasoline excise tax—House bill. C. Other excise tax provision—Clar- DOE Negligible revenue effect ify present law for retail truck excise tax (certain activities do not constitute remanufacture)— House bill. XX. Administrative simplification provi- sion: A. General provision—Certain no- 1/1/96 (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) ¥1 ¥1 tices disregarded under provision increasing interest rate on large corporate underpayments—House bill. XXI. Increase in public debt limit ......

Total of revenue provisions ...... ¥5,408 ¥37,217 ¥35,567 ¥37,438 ¥38,594 ¥39,856 ¥32,430 ¥47,042 ¥51,423 ¥56,939 ¥154,155 ¥226,450 ¥381,795

Total of outlay provisions ...... 14 28 42 56 ...... 42 140 140 1 The Earned Income Credit provisions are included in Title XII of the conference agreement; the budget effects are shown in a separate table. 2 Loss of less than $500,000. 3 Credit rate at 35% on first $6,000 of income, eligible workers expanded to include welfare cash recipients and veteran foodstamp recipients; 500 hour work requirement. 4 Section 257(b)(2)(c) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Enforcement Act of 1990, indicates that ‘‘excise taxes dedicated to a trust fund, if expiring, are assumed to be ex- tended at current rates’’. Since the revenues from these taxes are dedicated to the Airport and Airway Trust Fund, an extension of the taxes is scored as having no revenue effect. 5 Estimates provided by the Congressional Budget Office (CBO). 6 Estimates presented after interaction with Alternative Minimum tax provisions and are shown net of offset with the corporate income tax. 7 Loss of less than $1 million. 8 Loss of less than $2 million. 9 Increase exemption for books and tools of trade to $1,250. 10 Loss of less than $5 million. 11 Gain of less than $1 million. 12 Gain of less than $5 million. 13 Gain of less than $25 million. 14 Gain of less than $30 million. 15 No new suspense accounts could be established in taxable years ending after 9/13/95. The income in existing suspense accounts would be recognized in equal installments over a 20-year period beginning with the first taxable year beginning after 9/13/95. 16 Gain of less than $500,000. 17 Loss of less than $10 million. 18 Various effective dates depending on provisions. 19 Effective for amounts received after date of enactment and property placed in service after date of enactment with the exception of certain property subject to a binding contract on the date of enactment. 20 This provision considers interaction effects of SIMPLE retirement plan provisions. 21 Loss of less than $25 million. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17279 Legend for ‘‘Effective’’ column: ama=awards made after; ara=amounts received after; asda=annuity starting date after; aioIRSg=after Issuance of Internal Revenue Service guidance; bia DOE=bonds issued after date of enactment; cc/ tyea/E=contracts completed in taxable years ending after date of enactment; celia=contracts entered into after; cla=cash leases after; da=distributions after; dda=decedents dying after; DDA=disasters declared after; dda DOE=decedents dying after date of enactment; dda/gma=decedents dying after and gifts made after; DOE=date of enactment; eaii GATT=effective as if included in GATT; eaii OBRA’90=effective as if included in the Omnibus Budget Reconciliation Act of 1990; eall OBRA’93=effective as if included in the Omnibus Budget Reconciliation Act of 1993; fcqa DOE=first calendar quarter after date of enactment; fcq DOE+180 days=beginning of first calendar quarter that starts at least 180 days after date of enactment; ga DOE=gifts after date of enactment; gira=gross income received after; gsta=generation skipping transfers after; ica=involuntary conversion after; lpoaa=interest paid or accrued after; lia=levies issued after; lida=leasehold improvements disposed of after; lma=loans made after; lyba=limitation years beginning after; pca DOE=proceeding commenced after date of enactment; pma=payments made after; poida=payments on interest due after; ppisa=property placed in service after; pplso/a/b DOE=property placed in service on, after, or before date of enactment; pra=payments received after; pra/cdoa=payments received after, for crop damage occurring after; ptoo/a=prohibited transactions occurring on or after; pyba=plan years beginning after; pybb=plan years beginning before; sa=sales after; sea=sales and exchanges after; sia DOE=summonses issued after date of enactment; spa=services performed after; ta=transfers after; ta DOE=transfers after date of enactment; tyba=taxable years beginning after; tyba DOE=taxable years beginning after date of enactment; tybo/a DOE=taxable years beginning on or after date of enactment; tyea=taxable years ending after;tyea DOE=taxable years ending after date of enactment; tyeo/a=taxable years ending on or after; yba=years beginning after. Note.—Details may not add to totals due to rounding. Source: Joint Committee on Taxation.

CONFERENCE AGREEMENT—ESTIMATED BUDGET EFFECTS OF EARNED INCOME CREDIT (‘‘EIC’’) PROVISIONS OF H.R. 2491 (TITLE XII) [Fiscal years 1996–2002, in millions of dollars]

Provision Effective 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1996–2000 1996–2002 1996–2005

EIC Reforms 1. Modify AGI for the purpose of the EIC phaseout nontaxable social security benefits: nontaxable pension, IRA, and annuity distributions; tax-exempt inter- est; and child support payments in ex- cess of $6,000: a. Revenue ...... tyba 12/31/95 11 217 231 236 216 265 288 301 317 335 911 1,464 2,417 b. Outlay reductions ...... tyba 12/31/95 59 1,193 1,265 1,326 1,431 1,452 1,454 1,528 1,593 1,660 5,275 8,182 12,962 2. Modify AGI for the purpose of the EIC phaseout by adding back losses from Schedule C, Schedule D, Schedule E, Schedule F, and NOLs: a. Revenue ...... tyba 12/31/95 1 26 30 33 35 40 48 53 58 64 124 212 388 b. Outlay reductions ...... tyba 12/31/95 10 207 219 231 237 243 246 247 255 263 904 1,393 2,159 3. Include net passive income in dis- qualified income: a. Revenue ...... tyba 12/31/95 ...... 1 2 2 2 2 2 2 2 5 9 14 b. Outlay reductions ...... tyba 12/31/95 1 11 11 14 17 18 20 20 21 22 54 91 154 4. Restrict EIC eligibility to taxpayers with qualifying children: a. Revenue ...... tyba 12/31/95 4 89 93 97 100 107 112 117 123 129 383 601 970 b. Outlay reductions ...... tyba 12/31/95 27 535 557 583 610 631 658 686 715 745 2,313 3,602 5,747 5. Two-stage phaseout of the EIC. The second stage of the phaseout begins at $14,850 for households with one child and $17,750 for households with two or more children: a. Revenue ...... tyba 12/31/95 36 712 751 781 785 871 967 1.021 1,084 1,150 3,065 4,903 8,158 b. Outlay reductions ...... tyba 12/31/95 19 371 390 412 468 459 479 503 530 557 1,660 2,598 4,188 6. Set the maximum credit rate for tax- payers with multiple children at 36%: a. Revenue ...... tyba 12/31/95 13 259 258 365 343 406 433 508 540 574 1,239 2,078 3,701 b. Outlay reductions ...... tyba 12/31/95 82 1,641 1,723 1,697 1,812 1,836 1,882 1,901 1,966 2,033 6,955 10,673 16,572 7. Require Social Security numbers for primary and secondary taxpayers and treat omission of a correct Social Se- curity number and underpayment of SECA as a math error and other com- pliance proposals 1: a. Revenue ...... tyba 12/31/95 1 29 31 31 32 32 32 21 21 22 124 188 251 b. Outlay reductions ...... tyba 12/31/95 11 224 233 237 243 246 252 270 277 284 948 1,446 2,277 8. Apply an enhancement factor to the earned income of households with two or more qualifying children for the purpose of calculating the EIC: a. Revenue ...... tyba 12/31/95 ...... ¥1 ¥1 ¥1 ¥2 ¥1 ¥1 ¥2 ¥2 ¥2 ¥4 ¥6 ¥12 b. Outlay reductions ...... tyba 12/31/95 ¥57 ¥1,147 ¥1,188 ¥1,233 ¥1,281 ¥1,322 ¥1,329 ¥1,375 ¥1,417 ¥1,461 ¥4,907 ¥7,559 ¥11,812 Total of EIC revenue 2 ...... 60 1,183 1,294 1,391 1,493 1,627 1,845 1,985 2,158 2,346 5,421 8,894 15,383

Total of EIC outlay reductions 2 ... 153 3,268 3,513 3,756 4,045 4,290 4,459 4,748 5,044 5,359 14,745 23,494 38,645 1 Includes doubling of civil penalties for tax preparers. 2 Due to interaction between the provisions, items do not sum to total package. Legend for ‘‘Effective’’ column: tyba = taxable years beginning after. Note.—Details may not add to totals due to rounding. Source: Joint Committee on Taxation.

Mr. EXON. The majority could have earlier. They could have included the aside. The majority has demonstrated prevented this drain on the Treasury in tax breaks in the same title as the that it will do whatever it needs to the out-years by sunsetting the tax Medicare spending cuts. Or, during con- do—including bend and stretch the provisions. I read in the press that, at sideration of the budget resolution rec- rule—to protect its cherished tax one time, they were actively consider- onciliation instructions, they could breaks for the wealthy. ing such a notion. But they did not. have specified that section 313(b)(1)(E) Mr. ABRAHAM. Mr. President, I The tax cuts continue to add to the would not apply to the tax breaks. Any yield 5 minutes to the Senator from debt year after year. one of these three steps would have Florida. It is this Senator’s view that it is prevented a violation of the point of Mr. MACK. Mr. President, thank you. self-evident from the Joint Tax table order. But they didn’t do any of them. Mr. President, this is a moment, that the tax title does indeed worsen Therefore, Mr. President, I believe a frankly, for which I have been waiting the deficit in years beyond the 7 years point of order should lie against sub- since I made the decision to run for covered by this reconciliation bill. It is titles A through D of title XI of this Congress in October 1981 just over 14 thus this Senator’s view that the viola- conference report because they violate years ago. I left a career in the finan- tion of section 313(b)(1)(E) is plain. section 313(b)(1)(E) of the Congres- cial market to become a member of Some may argue that I am setting an sional Budget Act of 1974. Congress. I came here with the idea impossible standard for ever enacting Mr. President, I understand that the that we absolutely had to get control tax cuts. Quite to the contrary, my col- parliamentarian has advised that he of the growth of Federal Government leagues on the other side could have will not agree that these 2 points of and its spending. So, to me, this is a avoided this point of order in a number order lie against the bill. Everyone historic moment. Now I want to re- of ways. I am not here to give free par- should have known that the fix is in for spond to Senator PELL’s comment a liamentary advice, but they could have these tax breaks. If there had been any moment ago about the shrill partisan- sunsetted the tax breaks, as I noted doubt, that doubt has now been set ship —and I know that from time to S 17280 CONGRESSIONAL RECORD — SENATE November 17, 1995 time there are some extreme expres- That is what we are trying to do for inadequate enforcement. The study sions of feeling with respect to what we the American people. That is why we found that Government regulations of are doing—but I would just like to re- are making this commitment. Do you nursing homes, which was then con- mind each of us in the Senate that the know today that there is over $1.5 tril- ducted by the States, was totally un- reason there may be shrillness in this lion locked up in the stock market be- satisfactory because it allowed too debate, is because we are finally at the cause of high capital gains tax rates? It many marginal or substandard nursing moment when we are debating what is time to unlock that capital. It is homes to continue in operation. fundamentally divides us. time to allow that capital to flow into Mr. President, that was how it was Those on the left absolutely believe the new technologies that will develop during a time when lack of money was that the answers to America’s prob- America’s future. not all that much of a problem. Now, lems come from more Government. Oh, it is very popular to take the po- at this critical moment, as we prepare And frankly, Republicans reject that. sition of going after the wealthy. If you to severely reduce Medicaid funding to We think that America’s future is look at the record, you will find that the States, the Republican budget also based on the individual, that the our when the wealthy invest America, ev- abdicates nearly all Federal respon- limitation is the one we place on our eryone is better off. sibility to our most vulnerable citi- own imagination. And the Government, The other issue my friends on the zens, the disabled and the infirm elder- in fact, is a great player in that limita- other side of the aisle like to mention ly in our nursing homes across our tion. So the reason that we are having is Medicare. In fact, I heard one of the land. such a strong debate is because we are earlier speakers refer to the Medicare What we have before us, Mr. Presi- arguing over the principles that divide issue by saying the budget provision dent, in this basic conference report us. And, frankly, I am thankful that was going to rip the heart out of Medi- that we will be voting on in a short this moment finally has arrived. care. Well, frankly, I am at a loss over time—this conference report includes Maybe it is because my son called me how you can rip the heart out of Medi- what I declare as an abdication of our the other night and told me that he care while allowing it to grow from Federal role, an abdication of our re- just got engaged. Twenty-eight years $4,800 a year to $6,700 a year. sponsibility to the 2 million nursing old, and I could not be prouder of a son. Mr. President, I yield back my time. home residents in our country today. But, I think about the future in which Mr. EXON addressed the Chair. In this Republican budget we find Connie will live, and I think about my The PRESIDING OFFICER. The Sen- that their version of what constitutes daughter, who is in her thirties, with ator from Nebraska. nursing home standards, in my opin- Mr. EXON. I yield at least 8 min- three grandsons—the cutest little guys ion, is a warped version of the current utes—no more than 10 minutes—to my in the world—I think about their fu- law. Some very crafty legislative draft- colleague from Arkansas. tures. And so, I ask you to excuse me if ers have spent long hours in their at- Mr. PRYOR. Mr. President, I thank I become passionate about what I have tempts to totally and completely un- the Chair, and thank my friend from to say and the things I believe, because dercut the basic progress that we have Nebraska. I honestly believe that the direction we made over the past years in protecting I spent most of today looking the nursing home residents from abuse. have been headed will destroy this Na- through the Republican package, spe- tion. And that is why I feel so passion- Let me try to explain exactly what cifically with respect to the so-called this means: ately about the items that we have nursing home standards that have been been discussing. Where current law allows for Federal included in this legislation before us standards for nurse aide training, they There is something fundamental that tonight. are eliminated. has happened over the last few days, Mr. President, I cannot say strongly Where current law allows for Federal though. And I think it is important for enough how deeply offended I am by guidance with respect to transfers and people to recognize it. For 3 years jour- the extraordinary means that have discharges, the Republican proposal nalists, writers, and TV commentators been used to undermine the progress eliminates all guidance in that area. have been trying to figure out just who made in the most basic nursing home Where current law, Mr. President, is Bill Clinton. What does he stand for? protections that have been won over prohibits discrimination against Med- When is he going to stand up and fight the past 3 decades. I think that these icaid residents and prohibits facilities for what he believes in? Republican assaults on nursing home from charging residents, their families And, I find it interesting that Bill safeguards are no less than callous—I or friends to guarantee admission to Clinton has chosen this time and this hate to say that—and will open the the facility, those Federal protections issue to finally draw the line in the door to a litany of further abuses that by the Republicans are totally removed sand. You know what Bill Clinton is we have attempted to cure since the from this bill. saying, ‘‘I am opposed to balancing the 1960’s. The Republican leadership, Where current law requires Federal budget in the next 7 years.’’ I am glad through this attack, is saying basically guidelines to qualify as a facility ad- that he finally has made this state- ‘‘too old, too sick, too bad’’ to resi- ministrator, these guidelines are to- ment and made this stand. Bill Clinton dents of nursing home facilities across tally removed, Mr. President. They are has now finally told the people in this our country. now left to the States. country what he stands for, what he be- Mr. President, before I touch on some Where current law requires that fa- lieves in. It is more Government, more of the most glaring offenses of this cilities meet Federal standards with taxes, and more Federal spending. He package, I want to tell my colleagues respect to protecting residents’ per- has drawn the line in the sand and he that the law which this budget package sonal funds, these protections are to- has told the people of this country, is completely undermining, the 1987 tally stricken and left up to the States through his actions in the last few nursing home quality standards law, and to the nursing home owners. days, that he is in opposition to bal- was developed on a bipartisan basis, Where current law imposes require- ancing the budget in the next 7 years. was agreed to by all interested groups, ments for sound administration of a fa- The second point I would like to raise including the nursing home industry, cility, these guarantees are totally ex- has to do with a very fundamental part nursing home advocates, care provid- punged from the record. of what we are doing. And, yes, we are ers, unions, States, and finally, yes, To add insult to injury, in addition cutting the rate on capital gains. And the Congress of the United States. It to abdicating so many Federal respon- you know why we are doing it? Because followed literally years of discussions sibilities to these vulnerable individ- we believe that growth will take place and came about because the record of uals and dumping these requirements as a result of this cut. And as a result the States in preventing nursing home on the States, the Republican plan now of that growth, those little grand- abuse was appalling. before us would also eliminate any re- children that I talked about and my In 1986 the report by the National quired date by which the States must son are going to have a greater oppor- Academy of Sciences, which was com- be sure to meet its responsibility that tunity in the future, and with oppor- missioned by the Congress, found had formerly been handled by the Sec- tunity comes hope. shocking evidence of deficient care and retary of HHS. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17281 So we are now saying that States quality standards and implies that Provision allowing for deemed status to ac- must meet these requirements when- they are further weakened in this par- crediting agencies. ever, but not at a specific time. This is ticular conference report. This weakening of the federal standards is unwarranted and unconscionable. Based on a unconscionable, Mr. President. How The Nursing Home National Seniors review of proposals submitted by the Amer- can we in less than a decade abandon Center, run by Toby Edelman, has done ican Health Care Association, it is clear that these nursing home residents? How can a memorandum that I am going to ask the nursing home industry played a major we, by a vote of 51 to 48 in this body, be printed in the RECORD, and other role in the drafting of these provisions—a say we want the strongest standards, documents, Mr. President. fact that again highlights the leverage this and again just a few days ago by a vote I also have a letter from Service Em- industry has at the state and national level. ployees. These four documents I ask We strongly urge you, and your colleagues, of 95 to 1 on Monday of this week, and to oppose this language. It can only serve to now walk away from all of those stand- unanimous consent to be printed in the destroy the progress brought by the 1987 ards and say we are abdicating our re- RECORD. Nursing Home Reform Act—a law passed sponsibilities? What in the world is There being no objection, the mate- with bipartisan support by a previous Con- going on? rial was ordered to be printed in the gress. What we are about to do is basically RECORD, as follows: Sincerely, to begin a program of warehousing the NATIONAL CITIZENS’ COALITION FOR ELMA L. HOLDER, Executive Director. elderly population of our country. We NURSING HOME REFORM, Washington, DC, November 17, 1995. have identified at least 11 basic nursing [From the AARP News, Nov. 16, 1995] Hon. DAVID PRYOR, home standards that have been abol- AARP STATEMENT ON THE BUDGET ished under this plan. I know that U.S. Senate, Washington, DC. RECONCILIATION ACT OF 1995 there are many more. DEAR SENATOR PRYOR: The National Citi- The American Association of Retired Per- This plan allows homes to extort zens’ Coalition for Nursing Home Reform sons (AARP) remains very concerned about money in return for a guarantee of ad- (NCCNHR) has grave concerns about the lan- the magnitude of reductions to Medicare and mission to a facility. Under present guage regarding nursing home standards Medicaid contained in the conference report law, Mr. President, this is prohibited. contained in the report from the Conference to the Budget Reconciliation Act. While the Now we are abolishing that prohibi- Committee. We are extremely disappointed report includes some further improvements, by the disconcerting language accepted by Congress still has a long way to go. tion. The Association is pleased that the Medi- The Republican plan allows facilities the Committee members. Although the Con- ference language resembles the current Nurs- care Part-B deductible remains at $100 a to commingle residents’ individual sav- ing Home Reform Act, it serves to signifi- year, as in the House bill. But the total cuts ings accounts. cantly weaken and undermine the current to Medicare and Medicaid over seven years It allows homes to keep the interest standards, to the dangerous detriment of are still too much, too fast, and enforcement on resident savings accounts below residents of nursing homes. of nursing home quality standards has been $250. Our preliminary review of the conference further weakened in the report. Four hundred billion dollars in cuts from language has identified the following areas And it goes on and on and on. In fact, these two major health care programs that of concern: it kills Senator John Danforth’s self- serve older and low-income Americans do not Elimination of the requirement for facili- determination provision on living wills meet the fairness test. Reductions in Medi- ties to provide care and services to allow so that residents will have all of the in- care called for in the conference report are each resident to attain or maintain his or much more than is necessary to keep the formation about making and what con- her ‘‘highest practicable level of physical, program solvent into the next decade. stitutes a valid living will. mental, and psychosocial functioning.’’ Mr. President, further, what other Millions of American families depend on Elimination of the right to quality care Medicare and Medicaid for their basic health quality assurance protection does the and quality of life for each resident. Instead, care coverage, for protection against the budget package eliminate? It cuts the conference language speaks to ‘‘resi- high cost of long-term care and for financial down the fines from $10,000 to $5,000 per dents’’ collectively. security. These protections, for Americans of nursing home. The budget plan elimi- Elimination of the requirement of federal all ages, are now at risk. standards for conducting a resident assess- Cutting $164 billion from Medicaid over the nates the uniform assessment tool ment using a national uniform minimum which has been hailed universally by next seven years is far more than the pro- data set. gram can shoulder. Frail, older Americans, providers, States, surveyors, and resi- Loss of protections against discrimination most of whom are single, elderly women who dents alike, and by those people who based on source of payment and duration of have worked hard all of their lives, and chil- service ombudsman nursing home pa- stay contracts upon admission. dren from low-income families would be the tients and the residents. Elimination of federal standards for nurse hardest hit by such drastic cuts. All of these changes are bad enough. aide training—including elimination of re- At this juncture in the budget debate, it’s This legislation allows private entities quired 75 hours of training. a shame that a veto is necessary, but unfor- Elimination of the requirement for facili- to certify that facilities have met the tunately, there is no other alternative. ties with 120+ beds to employ a qualified so- AARP will continue to work with Congress quality standards, further reducing ac- cial worker. and the Administration to get fair legisla- countability of the State and the fa- Substantial watering down of transfer and tion that ensures future Medicare solvency cilities to meet the Federal guidelines discharge protections. and reduces the federal budget deficit. of the Government. Significant weakening of survey and cer- The PRESIDING OFFICER. If the tification requirements, including: Memorandum. Senator will suspend for one moment A two-year survey cycle (changed from 9–15 To: Interested people. months). From: Toby Eldeman. while the Chair gets order. Those Mem- Elimination of comprehensive training for bers and staff members in the back who Re conference committee language on nurs- state and federal surveyors. ing home reform. are having conversations, please take Less frequent federal validation surveys— Date: November 16, 1995. your conversations to the Cloakroom. from yearly to every 3 years. I’ve just gotten the conference committee Mr. PRYOR. May I inquire as to how Public disclosure of survey results—‘‘with- language and have gone very quickly much time remains? in a reasonable time,’’ instead of the current, through it to compare it with the current The PRESIDING OFFICER. The Sen- within 14 days. law and with the proposals made by the Significant weakening of enforcement pro- American Health Care Association. ator has used 7 minutes, 36 seconds. visions, including: Mr. PRYOR. I thank the Chair for The language represents a dramatic step Elimination of language requiring applica- backwards in all respects: the standards fa- maintaining order. tion of remedies in such a way as to mini- cilities would be required to meet, the sur- Mr. President, I do not have time to mize the time between the identification of vey and certification process, and the en- complete my statement. Let me just violations and the final imposition of rem- forcement system. On my first quick read- say that the National Citizens’ Coali- edies. ing, I think the most serious problems are: tion for Nursing Home Reform has Elimination of language calling for incre- 1. Standards for facilities: written me today urging that we look mentally more severe fines for repeated or A. Loss of the entitlement to high quality uncorrected deficiencies. very carefully at passing this legisla- of care for each individual resident; the lan- Elimination of retroactive civil money guage speaks of care to ‘‘residents.’’ tion. The AARP, in their press release penalties for past noncompliance. B. Loss of language ‘‘highest practicable this afternoon, expressed their concern Reduction of highest civil money penalty physical, mental, and psychosocial well- about the enforcement of nursing home from $10,000 to $5,000. being’’ as description of required services. S 17282 CONGRESSIONAL RECORD — SENATE November 17, 1995 C. Loss of protections against Medicaid aide; excludes a person ‘‘who is trained, resident’s estate and shall only be released discrimination in admission. whether compensated or not, to perform a to the administrator of the estate.’’ This lan- D. Loss of federal standards for nurse aid task-specific function which assists residents guage would appear to allow facilities to training, transfer and discharge, resident as- in their daily activities.’’ The industry has keep residents’ property and release it only sessment. States would have sole authority wanted this language to hire people to feed to the administrator of the estate. It would to determine standards. residents and do other tasks, but not to train also enable facilities to deny medical records E. Loss of Secretary’s duty and respon- them as nurse aides.—Yes to family members unless they were ap- sibility for standards, enforcement and fed- Excludes current language requiring facili- pointed administrator.—Yes eral money. ties with more than 120 beds from having at Deletes current language which defines as F. Substantial watering down of protec- least one social worker with at least a bach- a Medicaid person an individual whose share tions in transfer and discharge. elor’s degree in social work or similar profes- of cost equals the entire Medicaid rate. G. Financial issues: loss of rules specifying sional qualifications. 1396r(b)(7).—No These people currently are considered Medic- what care and services are covered by Medic- 2137(c)(1)(A)(v)—Residents rights: accom- aid residents and cannot be charged more aid and what care and services are not; pro- modation of needs; adds language after the than the Medicaid rate. 1396r(c)(7)(B).—Yes tection for Medicaid residents who pay the right to receive notice before room or room- 2137(d)(1)(C)—Nursing facility adminis- entire Medicaid rate as their share of cost. mate is changed to say ‘‘unless a delay in trator: adds language to require administra- 2. Survey and certification changing the room or roommate while notice tors of all facilities, whether freestanding or A. Two year survey cycle. is given would endanger the resident or oth- hospital-based, to meet the Secretary’s B. Loss of comprehensive training for sur- ers.’’ The industry has not liked giving no- standards. The industry has been interested veyors by Secretary. tice.—Yes in making hospital-based facilities meet C. Reduced federal validation surveys; Excludes current language giving residents nursing facility standards. This is one way from annual to every 3 years. the right to refuse certain transfers (trans- to make it difficult for hospital-based facili- D. Public disclosure of survey results— fers facilities make to get coverage under a ties to be nursing facilities.—Yes from within 14 calendar days of providing to payment program). 1396r(c)(1)(A)(x).—Yes 2137(d)(4)(A)—Miscellaneous administrative facility to ‘‘within a reasonable time.’’ 2137(c)(2)(B)(ii)(V)—Transfer and discharge: 3. Enforcement issues: compliance with federal, state, and /A. Deemed status to accrediting agencies adds a new reason not to have to give a 30 local laws and professional standards: applies (very serious issue). day notice: ‘‘a case where the provision of a this language to hospital-based facilities. B. Loss of language for both states and 30-day notice would be impossible or imprac- Same reasoning as above.—Yes Secretary requiring enforcement systems ticable.’’ This language essentially eliminate 2137(e)(1)—State requirements; specifica- that minimize the time between identifica- the 30-day notice requirement; facilities tion and review of nurse aide training; de- tion of deficiencies and imposition of rem- would always claim it was impossible or im- letes current requirements that state nurse edies; more severe penalties for more serious practicable to give 30 day notice.—Yes aide training program meet federal stand- or uncorrected deficiencies. 2137(c)(2)(B)(iv)—Transfer and discharge: ards.—No C. Loss of retroactive civil money pen- adds a new ‘‘exception’’ statement; ‘‘This 2137(e)(3)—State requirements; state ap- alties. subparagraph shall not apply to a voluntary peals process for transfers and discharges; D. Reduction of highest civil money pen- transfer or discharge necessitated by a medi- deletes current requirement that states meet alty to $5000. cal emergency.’’ Since there is no definition federal standards on appeals process.—No It looks to me as if, generally, the con- of ‘‘voluntary,’’ we would see many transfers 2137(e)(4)—State requirements; nursing fa- ferees listened to AHCA on the Requirements and discharges called voluntary.—Yes cility administrator standards; adds require- for facilities and to the Governors on survey, 2137(c)(2)(C)—Orientation for transfer and ment that hospital-based administrators certification, and enforcement. discharge: changes the language to require meet administrator standards. Same reason- Section of bill—What the change is and just ‘‘reasonable’’ preparation and orienta- ing as other issues where hospital-based fa- why the change is a problem. Whether AHCA tion; and instead of requiring, as current law cilities must meet same requirements as proposed the change. does, that preparation and orientation ‘‘en- free-standing.—No 2137(b)(1)(A)—Quality of life: adds the word sure safe and orderly transfer or discharge,’’ 2137(e)(5)—State requirements; specifica- ‘‘reasonably’’ before promotes,’’ thus quali- the new language requires only that prepara- tion of resident assessment instrument; de- fying the requirement.—Yes tion and orientation ‘‘promote’’ safe and or- letes current requirement that state choose 2137(b)(2)—Scope of services and activities derly transfer or discharge.—Yes a resident assessment instrument designated under plan of care: deletes current language 2137(c)(2)(D)(iii)—Bed reserve: adds lan- by the Secretary or approved by the Sec- ‘‘to attain and maintain the highest prac- guage to confirm that a resident is not enti- retary as being consistent with the mini- ticable physical, mental, and psychosocial tled to the next available bed if it is a pri- mum data set.—No well-being’’ after services and activities: the vate room.—Yes 2137(e)(7)—State requirements; keeps new language requires facilities ‘‘to provide Deletes current language requiring facili- preadmission screening but deletes annual services and activities in accordance with a ties to give information to residents about resident review. AHCA wanted PASARR de- written plan of care.’’—Yes advance directives. 1396r(c)(2)(E).—No leted. 2137(b)(3)(A)(ii)—Resident assessment: says 2137(c)(3)(C)—Access and visitation rights: 2137(f)(l)—In current law, this establishes the instrument is specified by the state; de- adds new qualification to visits by saying the Secretary’s duties. The new language letes the requirement that the assessment be there is immediate access ‘‘unless such ac- makes this a state duty. So current federal based on minimum data set specified by the cess would endanger the health or safety of law which now says: ‘‘It is the duty and re- Secretary.—No the resident or others in the facility.’’ Deny- sponsibility of the Secretary to assure that 2137(b)(3)(E)—Resident assessment: re- ing access to family members who complain requirements which govern the provision of quires facility to notify state mental health is common. This language would strengthen care in nursing facilities . . . and the en- authority or mental retardation or devel- facilities’ ability to deny access to visitors. forcement of such requirements are adequate opmental disability authority, as applicable, Notice that the language does not include to protect the health, safety, welfare, and of change in physical or mental condition of this qualification for any other category of rights of residents and to promote the effec- a resident who is mentally ill or mentally re- visitor.—Yes tive and efficient use of public money.’’ Is tarded. New requirement.—No Deletes current language prohibiting dis- now changed to say ‘‘It is the duty and re- Deletes preadmission screening and annual crimination in admission. 1396r(c)(2)(5).—Yes sponsibility of a State with a MediGrant resident review (PASARR). We don’t dis- 2137(c)(5)(B)(i)—Protection of residents plan . . . .’’ agree with this deletion.—Yes funds: raises the amount that must be depos- 2137(f)(2)—Requirements for nurse aid 2137(b)(4)(A)(i)—Provision of services and ited in an interest bearing account to $250. training and competency evaluation pro- activities: deletes ‘‘to attain and maintain Note that the personal needs allowance is $35 grams: This is Section (f), but it is only a the highest practicable physical, mental, and per month (although states may allow state duty under the new language. Specific psychosocial well-being’’ after ‘‘nursing and more).—Yes language from current law is deleted, as re- related services and specialized rehabilita- 2137(c)(5)(B)(ii)—Protection of resident quested as AHCA, but I can’t read the lan- tive services.’’.—Yes funds: deletes a word from the current lan- guage on my copy tonight. 2137(b)(4)(A)—Provision of services: guage, which I think is ‘‘separate.’’ If that’s Deletes federal requirements for transfer changes language from providing services to the deletion, the language would no longer and discharge and does not place the duty on ‘‘each resident’’ to ‘‘residents’’ for social require separate accountings of residents’ states. 1396r(f)(3). services (2137(b)(4)(A)(ii)); pharmaceutical funds.—Yes 2137(f)(3)—Qualifications of administrators: services (2137(b)(4)(A)(iii)); dietary services Deletes current language requiring facili- adds language to require hospital-based ad- (2137(b)(4)(A)(iv)); activities (2137(b)(4)(A)(v)); ties to notify residents when their balances ministrators to meet federal standards.—Yes dental services (2137(b)(4)(A)(v)).—Yes are $200 less than the amount that would Deletes current rules for Criteria for Ad- 2137(b)(4)(A)—Provision of services: deletes make them lose Medicaid eligibility.—No ministration, which required the Secretary mental health services for mentally ill and 2137(c)(5)(B)(iii)—Protection of resident to establish rules for administration in such mentally retarded residents.—Yes funds: conveyance upon death: adds language areas as disaster preparedness, direction of 2137(B)(5)(F)(iii)—Nurse aid training: Adds ‘‘All other personal property, including med- medical care by a physician, clinical records. a new exclusion from definition of nurse ical records, shall be considered part of the 1396r(f)(5).—No November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17283 Deletes current rules for Criteria for Ad- Deletes current language at the end of Nursing Home Reform Act, were the oppo- ministration, which required the Secretary 1396r(h)(2)(A) saying that state criteria must nents of the protections for nursing home to establish rules for administration in such minimize the time between identification of residents turned aside in their effort to re- areas as disaster preparedness, direction of deficiencies and imposition of remedies and peal the standard. medical care by a physician, clinical records. provide for incrementally more severe fines In their new tactic, opponents of federal 1396r(f)(5).—No for repeated or uncorrected deficiencies; and nursing homes standards are attempting to Deletes List of items and services fur- that states may provide for other specified repeal the standards by enacting gutting nished in nursing facilities not chargeable to remedies, such as directed plans of correc- amendments. For example, on quality of the personal funds of a resident. 1396r(f)(7). tion.—Yes care, where the current statute states that This language required the Secretary to es- Deletes current language about deadline ‘‘a nursing facility must provide services and tablish by rules which items and services are and guidance on enforcement. 1396r(h)(2)(B). activities to attain or maintain the highest covered by Medicaid and which items and 2137(h)(2)(C)—Assuring prompt compliance: practicable physical, mental, and services could be charged to residents. As Changes mandatory imposition of denial of psychosocial well being of each resident in 1396r(f)(7)(A) explicitly says, Congress first payment if a facility fails to come into com- accordance with a written plan’’, the oppo- told the Secretary to publish such rules in pliance within 3 months; changes mandatory nents have crafted an amendment in the con- 1977 as part of the Medicare-Medicaid Anti- into permissive—state ‘‘may’’ impose the ference agreement that restates this provi- Fraud and Abuse Amendments of 1977. HCFA remedy.—Yes sion to read ‘‘a nursing facility must provide finally published these rules in 1992 or so. I Deletes language about funding for tem- services and activities in accordance with a can get the exact date.—No porary management other remedies. written plan’’. Deletes current language on PASARR. 1396r(h)(2)(E).—No On training, current statutes require that 1396r(f)(8).—Yes Deletes Incentives for High Quality Care. workers providing nursing or nursing related Deletes current requirement re federal cri- 1396r(h)(2)(F).—No services be trained and receive in-service teria for monitor state waivers of nurse 2137(h)(3)(B)—Secretarial authority: sub- education. The opponents’ amendment would staffing requirements. 1396r(f)(9).—No stantially revised. New language requires allow all nursing facilities, regardless of the 2137(g)(1)(A)—Survey and certification: de- Secretary to notify state of deficiency it number of civil penalties, deficiency reports, letes prohibition against states determining finds in a facility; must give state reasonable and demonstrated substandard care incidents compliance with state facilities.—Yes period of time to take enforcement action. If at the facility, to perpetuate those problems Survey and certification: deletes require- state doesn’t act or if the deficiency remains by running their own nurse aide training ment for educational program for staff and uncorrected, the Secretary can take enforce- programs. In addition, the opponents’ residents and their representatives. ment action.—No amendment excludes from the training re- 1396r(g)(1)(B).—No Deletes language permitting Secretary to quirement ‘‘any individual who is trained, 2137(g)(2)(A)(iii)(I)—Annual surveys: ex- impose retroactive civil money penalty. whether compensated or not, to perform a tends the time to 24 months (from 12 1396r(h)(3).—Yes task-specific function which assists residents months) unless the facility has been sub- 2137(h)(3)(C)—Civil money penalty: Reduces in their daily activities’’. The opponents’ jected to an extended survey. In that case, 12 maximum penalty to $5000 (from $10,000).— amendment does not set standards for the months.—No Yes training, does not require continuing edu- 2137(g)(2)(A)(iii)(II)—Special surveys fol- Deletes language (as for the state) requir- cation, and does not even require that the lowing change in ownership, administration, ing criteria to minimize the time between ‘‘task-specific function’’ performed by the management: changes time to 4 months (I identifying deficiencies and imposing sanc- individual be the task for which they receive can’t read what the current time period is.)— tions, etc. 1396r(h)(4).—No the undefined training. Yes 2137(h)(4)—Special Rules Regarding Pay- On spousal impoverishment, the opponents 2137(g)(2)(C)(i)—Survey protocol: says pro- ments to Facilities; Continuation of Pay- of federal standards have scored one of their tocol that the Secretary has developed, test- ments Pending Remediation: revises the lan- most tragic successes. They have included a ed, and validated ‘‘as of the date of the en- guage to permit payment to facilities for 6 repeal of the provision that stated that a actment of this title.’’ Current law says as of months; no requirement of states repaying ‘‘nursing facility must not require a third Jan. 1, 1990.—No Secretary if the facility does not come into party guarantee of payment to the facility 2137(g)(2)(C)(ii)—Survey protocol: says sur- compliance.—No as a condition of admission (or expedited ad- veyors must meet minimum qualifications Deletes current language about immediate mission) to, or continued stay in the facil- established by the State. Current law says termination of participation for facility ity’’. With this provision repealed, spouses Secretary.—No where state or Secretary finds noncompli- and children can be coerced by nursing Deletes current requirement that Sec- ance and immediate jeopardy, 1396r(h)(5); homes to pay nursing home bills that aver- retary provides for comprehensive training Special Rules where State and Secretary do age $38,000 a year. of state and federal surveyors. not agree on finding of noncompliance, Finally, were any facility to be so incom- 1396r(g)(2)(E)(iii).—No 1396r(h)(6); special rules for timing of termi- petent that it manages to violate the few 2137(g)(3)(B)—Validation surveys: Requires nation of participation where remedies over- shreds of remaining federal standards, they Secretary to conduct validation surveys at lap, 1396r(h)(7). will be saved from their own incompetency least every 3 years of 5% of facilities in the New language about sharing of information by toothless enforcement provisions. The op- state, but at least 5 per state. Current law between states and Secretary. 2137(h)(6). ponents of federal standards have included requires these numbers of validation surveys New language, Construction, about Medi- verbatim amendments drafted by the Amer- annually. 1396r(g)(3)(B).—No care Requirements. 2137(l)(1). ican Health Care Association. The nursing Deletes Reductions in Administrative New language, Construction, permitting home industry’s amendments, as would be Costs for Substandard Performance, current accreditation at option of state of Secretary. expected, strike language that allows a state language which allows the Secretary to pe- 2137(i)(2). to ‘‘provide for a civil money penalty for the nalize states that fail to perform survey and days in which it finds that the facility was certification activities adequately. SERVICE EMPLOYEES not in compliance with such requirements,’’ 1396r(g)(3)(C).—No INTERNATIONAL UNION, AFL–CIO, CLC, which ‘‘shall provide for the imposition of in- Deletes current language that permits Washington, DC, November 17, 1995. crementally more severe fines for repeated states to maintain and utilize a specialized DEAR SENATOR: On behalf of the 1.1 million or uncorrected deficiences’’ and on and on survey team. 1396r(g)(4) [This is part of In- members of the Service Employees Inter- and on. vestigation of Complaints and Monitoring national Union, I urge you to vote against We know from experience what happens Nursing Facility Compliance]—No the conference report on Budget Reconcili- when the Federal government pulls out of 2137(g)(5)(A)—Disclosure of Results of In- ation. Among the damaging provisions in- nursing home regulation. Federal regulation spections and Activities; Public Information: cluded in the bill are amendments to the was minimal during the 1960s, ‘70s, and early new language requires public disclosure of Nursing Home Reform Act which would crip- ‘80s, and the results were disastrous: Disabil- survey information ‘‘within a reasonable ple the Act, endanger nursing homes resi- ities, permanent injuries, and even pre- time,’’ current law says within 14 calendar dents, and impoverish their families. mature death to nursing home residents. The days after such information is provided to fa- The amendments in the Conference Report 1986 report of a national study commission cility.—No are merely another tactic pursued by oppo- found that: ‘‘In the past 15 years, many stud- 2137(h)(1)—Enforcement: adds new (A) say- nents of the nursing home reform act to re- ies of nursing home care have identified both ing state must require facility to correct de- peal those provisions. To place this effort in grossly inadequate care and abuse of resi- ficiency.—No context, I would remind you that as passed dents.’’ The Gingrich troops often talk as if Deletes current language at end of by the House and introduced in the Senate, they are conducting an important experi- 1396r(h)(1) authorizing retroactive civil the reconciliation bills repealed the federal ment on the power of free markets. When it money penalties.—Yes standards. At introduction, the extreme pro- comes to nursing homes, we’ve tried this ex- Deletes current language about use of civil posals repealed even protections against use periment before, and the tragic findings are money penalties that are collected to pro- of physical and chemical restraints, spousal burned in our memory. tect health or property of residents. impoverishment, and training of nurse aides. The Federal government jumped into nurs- 1396r(h)(2)(A)(ii).—No Only when the Senate voted to retain the ing home regulation because of abuses in the S 17284 CONGRESSIONAL RECORD — SENATE November 17, 1995 industry. Incredibly, the Republicans pro- The PRESIDING OFFICER. The Sen- do, so that the one-income-earner cou- pose to abandon oversight activities at the ator from Texas is recognized for 5 ple that sacrifices so that the home- same time that they begin squeezing nursing minutes. maker can stay home and raise chil- home operators in a financial vise. About Mrs. HUTCHISON. Thank you, Mr. dren will have the same retirement op- half of nursing home revenues come from Medicaid, the program Speaker Gingrich President, and I thank the Senator portunities as if there had been two in- proposes to cut by over $160 billion. Nursing from Michigan. comes earned for their families. home workers know well how corners are cut This afternoon late, a Mr. Don Shel- We are going to have welfare reform, and how patient care suffers when executives by called our office. He was calling and we are going to say to the people focus on cost reduction. Who will protect pa- from the St. Vincent de Paul Hospice who are out there working to make tients and who will safeguard quality as in Austin, TX. He told me that he had ends meet that it is worth it to work, nursing home operators scramble to cope voted for me in the last election and because if able-bodied people can work with massive revenue losses? that he would not be alive long enough but choose not to, they will not be on Future trends will also transform the type of care delivered by nursing homes. Nursing to vote for me again, but he and the the welfare wagon more than 5 years in homes will be caring for people with more se- people in the hospice with him were so their lifetime. For the first time, we rious medical needs. A common strategy to concerned about what is going on in will put a lifetime limitation on able- control health care costs involves moving Washington that they collected $8 in bodied welfare recipients. patients out of hospitals and into nursing change to go to a pay phone and call And we are going to reform Medicaid. homes—during surgical recovery, for in- my office. We are going to give it to the States stance. One reason that nursing homes have And the message was this: ‘‘Stick to where they can run it more efficiently. been trusted with such work is the Federal your guns. I will not be around, but I We are going to save Medicare. We are training standards for nursing staff. Our want to know when I die that my chil- workers tell us that this training has sub- going to save Medicare for our elderly. stantially improved nursing home oper- dren are going to have a future.’’ We are going to increase spending in ations. The training requirements must not I want to say to Mr. Shelby and the Medicare over 7 percent per year. And be junked at a time when the home popu- people who contributed the $8 to make we are going to slow that rate of lation is getting sicker and requires more so- that call, we will not let you down. We growth from 10 percent so that we can phisticated care. will not. We will stick to our guns. We save the system—so that Mr. Shelby Federal regulations are the lifeline pro- will do what is right for this country, will know that it will be there for his tecting quality of care for nursing home resi- as hard as it may be. We will do the children. dents. Federal oversight helped rescue us right thing. from a grim past. We must not ask nursing Mr. President, we may make a few home residents to give up that lifeline as we The people of this country have been mistakes. This is a big bill. We may sail into a stormy future. promised for 25 years that the politi- not do everything right. But there is Very truly yours, cians in Washington would balance the one mistake that we cannot afford to JOHN J. SWEENEY, budget. Twenty-five years, and we have make and that is to do nothing so that International President. failed every year. This is our oppor- our children will inherit this debt of $5 Mr. PRYOR. Mr. President, finally, I tunity. This is our chance. trillion. never thought I would see the day of Always before people said, ‘‘They’ll I yield the floor. such an attempted emasculation of never do it. The entitlements, it’s too Mr. REID addressed the Chair. nursing home standards which we hard; they’ll never do it.’’ But we are The PRESIDING OFFICER. The Sen- fought so hard to protect. I never doing it. ator from Nevada. thought I would see it; never thought it I have heard speeches on this floor all Mr. REID. Mr. President, on behalf of would happen. I do not know why it is afternoon. ‘‘Those radical Repub- Senator EXON, I yield myself 5 minutes. happening, but it is unbelievable that licans.’’ Radical? Is it radical to keep a The PRESIDING OFFICER. The Sen- this Nation, the greatest Nation on the promise you made? Is it radical to run ator is recognized. face of the Earth, with the full force for an election in 1994 and promise the Mr. REID. Mr. President, it is inter- and effect of the Republican-controlled people that you will balance the budg- esting to note that since yesterday the Senate and the House, our Federal et, that you will make the tough name of this bill has changed. It is no Government is about to wash its hands choices, no matter the consequences longer the reconciliation bill. It is of the responsibility toward protecting and then keep that promise? I do not called something like the Balanced 2 million seniors who today reside in think so. It is unusual, because people Budget Act of 1995. I am certain that American nursing homes. have been promised so many times in the spin masters have said: All you While we have the basic safeguards of the past and the promises have not good Republicans, do not refer to this 1987, we are today basically walking been kept. It is unusual to keep a as reconciliation because the American away from those safeguards and saying promise, but I do not think it is radi- people do not like what they have to that nursing home resident, ‘‘We cal, and I do not think the American heard. want no more to do with you. We are people do either. I think rather than change the name going to cut you adrift, and we are We are going to pass tonight the Bal- to the Balanced Budget Act of 1995, a going to let you basically fend for anced Budget Act of 1995. It will be the more appropriate name would be yourself.’’ first time that the politicians in this maybe something like the End of Rural Over Thanksgiving, I challenge my country in 25 years have kept their Hospitals Act, or maybe you could colleagues on the other side of the promise. The President keeps talking come up with something like the Get aisle, or anyone who supports obliter- about a balanced budget, but he is Old People Act of 1995, or maybe Ruin ating these standards, to go back to a doing what politicians have done for 25 the Environment Act of 1995, or maybe nursing home in your State, to look years, and when it comes time to sign Destroy Education Act of 1995, or Pun- those residents in the eye and to tell the dotted line, he is demurring, he is ish the Veterans Act of 1995, or maybe them how proud you are to have voted walking away from his promise that he something even simpler like Save the to compromise their safety and well- made in the election of 1992 and he is Big Sugar Interests of the United being and quality of life and walk away saying, ‘‘Oh, well, of course, I want a States Act of 1995. from the commitment that we have balanced budget, and I’m going to talk Mr. President, it is not all or noth- had for almost a decade to protect about it, but when it’s presented to me, ing. You see, on this side of the aisle, their livelihood. I’m not going to sign on.’’ there are many people that believe in a Mr. President, I thank the Chair, and The people are not stupid. They do balanced budget. In fact, most people I yield the floor. understand a promise kept, and that is do believe in a balanced budget amend- Mr. ABRAHAM addressed the Chair. what is going to happen tonight. We ment. The former chairman of the The PRESIDING OFFICER. The Sen- are going to keep our promise to the Budget Committee, the ranking mem- ator from Michigan. homemakers of this country that they ber, the senior Senator from Nebraska, Mr. ABRAHAM. Mr. President, I will have security and they will be able knows what balanced budgets are all yield 5 minutes to the Senator from to contribute to IRA’s just like those about. He started talking about bal- Texas. of us who work outside the home can anced budgets a long time ago when he November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17285 was Governor of the State of Nebraska. member the speeches from the last 6 this package. That is what we need. We We have many people who believe in years and people saying, ‘‘We believe in have to expand job opportunities. balanced budgets, but they believe in a balanced budget, but look at all the Economic development—my good- doing it in a fair way that does not pain; maybe we can do it next year.’’ ness, just the presence of the Govern- hurt seniors, rural hospitals, the envi- Well, that next year has gone on for ment in your neighborhood is not eco- ronment, damage education, or punish about 40 years and we kind of find our- nomic development. We must produce veterans. selves in a pickle. real growth, either manufacturing or Mr. President, I think that we should I had a wonderful woman that used to the development of natural resources recognize that the reason the name was work in our office. She has since trans- that provides natural wealth. It just changed overnight from ‘‘reconcili- ferred to Minneapolis with her hus- does not start here in Washington. ation’’ to the ‘‘balanced budget act of band, where he found a job oppor- I was taken aback a while ago when 1995,’’ I repeat, is because the American tunity, and they just had a brand-new I saw the former Governor of Arkansas public does not like what they have baby. That is what this debate is all worrying about the nursing home regu- heard in this reconciliation bill—this about. It is about this young one in lations. What is the matter? Is this thousand-page bill we received a few this picture, 3-days old, born 10/7/95, 71⁄2 town the only one that has a con- minutes ago. pounds, 211⁄4 inches long. That is what science? He has no faith in the State So this, Mr. President, is what the it is all about, folks. To do anything governments to regulate their nursing American people deserve, and that is a different jeopardizes the future of this homes to the benefit of our elderly? fair bill to balance the budget, which young woman, this young lady right The PRESIDING OFFICER. The time we want to do, also. here in the picture. And it is because of the Senator has expired. Mr. President, on anything that I there are some of us who care to stand Mr. BURNS. I am in complete sup- have said to this point, the Senator for maybe some very unpopular things port of this package. I yield the floor. from New Hampshire, Senator GREGG, I right now, and take the responsibility, Mr. EXON. I yield 5 minutes to the am sure would disassociate himself because we do care for this young Senator from West Virginia. with me. But what I am going to say woman. We want to hand her a nation Mr. ROCKEFELLER. I thank the dis- now, he would associate himself with that is strong economically and also tinguished Senator from Nebraska. me, and he has given me permission to strong politically. Mr. President, I am stunned that we do so. We have a point of order that This debate has gone on a long time. still have to come to the floor to de- would lie against this bill, but we are Everybody says, ‘‘Well, you have to fend Medicare from the largest, most not going to offer it. It is the Byrd rule quit wrangling up there on the Hill. We dangerous, most serious cut ever to point of order against the so-called do not like to be furloughed.’’ surface since it was signed into law by President Johnson exactly 30 years trigger provisions contained in a sec- I just got a letter from a young ago. tion of the act dealing with the sugar woman in Winston, MT. It says: ‘‘Stop Yes, this nightmare is not a dream. program. It is on the basis—on many the talking, do something different. I The budget plan on the Senate floor bases, but there is no change in outlays want to have a nice Thanksgiving and this very minute aims its fire at Medi- or revenues. We are not going to do a Christmas.’’ It is signed, ‘‘Amanda care for $270 billion in cuts over the 7 that. But everyone should be aware Baum, Winston, Montana.’’ that the Senator from Nevada and the years. Guess what also survived the Well, Amanda, it is a two-way street. Senator from New Hampshire are going conference? A kitty of $245 billion of We offered a continuing resolution that to go after these sugar interests, which new tax breaks, new tax cuts, new tax would let your father go back to work I believe, Mr. President, is one of the relief that go to the wealthiest Ameri- as soon as possible. But, you know, most damaging things that is in this cans and all kinds of corporations. there is a person on the other end of piece of legislation. That is right. To the 30 million sen- Pennsylvania avenue that said, no, I do This legislation does nothing to help ior citizens counting on Medicare, to not like that, so I am not going to sign the family farmer. It hurts the family the disabled citizens counting on Medi- it. So you are on furlough. But it takes farmer. But what it does do is make a care, it is still the piggy bank for a two people. I say change the message sweet deal for big sugar growers. As I whole lot of things that have nothing and call the House at the other end of said, this does not help the small fam- to do with Medicare and much more to Pennsylvania Avenue. ily farmer. Seventeen cane growers get do with tax breaks for the wealthy, tax 58 percent of the benefits that come to In this Balanced Budget Act of 1995, increases for working families, cuts in all cane growers. One received more there is a $500 per child tax credit. education, and the other features of than $65 million—one person—in 1- What does that mean to your individ- this budget plan now on the Senate for year; 33 growers received benefits of ual States? I will tell you what it a final vote. over a million dollars apiece a year; in means in Montana. The total number You do not need a graduate degree in Florida, the number one State in sugar of returns eligible for a tax credit will mathematics to do the basic arith- production, two growers account for 75 be around 66,000 people. There are only metic. Start with the proposition made percent of production. 800,000 people in my whole State, but by the Republican side of the aisle— So the U.S. Senate and the Congress 66,000 returns will qualify for this $500 that Medicare must be cut to save the should be advised that the Senator per child tax credit. It will cover the program, preserve it, keep it solvent. from Nevada and the Senator from New amount of dependents of around 98,000 But that is when you hit the brick Hampshire are going to make sure that people, and the value to the State of wall. The trustees of the Medicare Part the sugar program in the future is Montana is around $46 million. That is A Hospital Trust Fund say that $89 bil- treated fairly, which it should be. The money in families’ pockets. That is lion are needed to extend the Fund’s real losers in the Sugar Program that money that can be put in a savings ac- solvency until the year 2006. Not $270 we have is the American consumer, count to buy a home. It is money that billion, $89 billion. That is a difference who pays a huge amount for their can be put in a savings account that of $181 billion. sugar and they should not have to. can pay for education for our young Why won’t the Republicans listen to I yield the remainder of my time. ones coming along, and for those folks Medicare’s trustees, and limit Medi- Mr. ABRAHAM. Mr. President, I who want the responsibility of manag- care cuts to $89 billion so the program yield 5 minutes to the Senator from ing their own money. is solvent for 10 full years? Because Montana. So in this Balanced Budget Act, let they’re listening to the tune whistled Mr. BURNS. Mr. President, I thank us talk about some real things, like on the steps of the Capitol over a year my friend from Michigan. capital gains that help us all. ago, when the Contract for America This is probably a historical time for No, we did not get all the AMT tax was unfurled and $245 billion of tax this body. The first time in many years we wanted. Nonetheless, it does do breaks were promised. that we have had the opportunity to something about depreciation—depre- Of course, none will admit that Medi- balance the budget, to put us on the ciation that creates jobs and expands care is being raided to pay for tax trail to do something responsible. I re- job opportunities. That is what is in breaks for the rich. Who in their right S 17286 CONGRESSIONAL RECORD — SENATE November 17, 1995 mind would make that kind of confes- scription drugs, eyeglasses, certain balance billing when they brought pri- sion? tests, home care, and the list goes on. vate insurance plans. But in this Re- But we do not need a confession. The And we are not just talking about publican budget, the price gouging can mountain of evidence is right here in Medicare’s meaning for senior citizens start again. this stack of paper that is the Repub- in West Virginia or Massachusetts or Before this budget, there were Fed- lican budget plan called reconciliation. California. It is the same for seniors in eral standards to make sure tests done Medicare cuts of $270 billion or even Kansas, in Texas, name your State. We in the labs located in the doctors’ of- more. Tax breaks of $245 billion. Case are talking about people with average fice were accurate and reliable. But in closed. incomes of $24,000 pay a fifth of their the Republican budget, the salespitches This $270 billion sounds like a huge incomes on health care already, who will start exploding. Medicare vouchers cut because it is a huge cut. You don’t are about the only Americans that for managed care will be waved around, get $270 billion out of Medicare with a have health care protection that can- luring seniors into managed care and few nips here and a few tucks there. not be taken away. locking them in for 1 year. I can hear Squeezing that much money out of Until today. Until we see this incred- the telemarketers and advertisers writ- Medicare means increasing expenses ible budget plan that still takes $270 ing the scripts, the jingles, and hiding for senior citizens, shrinking payments billion from Medicare, not to mention the fine print—because here we come, for hospitals and other providers, the $170 or $180 billion from Medicare. Medical Savings Accounts. With this weakening Medicare’s role in protect- Not to save Medicare, but to come up Republican budget, Medical Savings ing against shoddy health care, and re- with $245 billion in tax breaks for peo- Accounts will be targeted, you can sorting to cheaper ways to pretend sen- ple with incomes far, far higher than count on it, at the healthier seniors, iors will still get reliable health insur- $24,000 a year. driving up costs for everyone else and ance. Make no mistake about it, $270 Now it is time to talk about just ex- for the Medicare Program, and driving billion in Medicare cuts will hurt and actly how this budget gets $270 billion doctors away from accepting seniors. will be noticed. out of Medicare. Mr. President, there are con- In fact, let us take an up-close look It starts with a plan the whole coun- sequences to $270 billion of Medicare at just how the Republicans came up try got a special education in this cuts. Ask the hospitals of your State. with $270 billion in Medicare cuts to week—because it was even attached to Listen to the senior citizens whose pre- pay for tax breaks. the bill that is only supposed to ensure miums and deductibles will go up. the Federal Government can operate. Mr. President, I ask unanimous con- But first, maybe I need to start by It starts with a plan the whole coun- sent to have printed in the RECORD a reminding some people around here try got a special education in this letter that denounces the Republican just how important Medicare is to a week—because it was even attached to plan. vast portion of the American popu- the bill that is only supposed to ensure There being no objection, the mate- lation. No wonder Americans are more the Federal Government can operate. rial was ordered to be printed in the likely to say about Congress they are I am talking about a Medicare pre- RECORD as follows: scared to death than just angry. mium increase. It may have been AMERICA’S HOSPITALS AND HEALTH SYSTEMS It is Medicare that the phrase, crown stripped from the continuing resolu- jewels, should be reserved for. The en- NOVEMBER 17, 1995. tion, but it is back. This budget in- Hon. JOHN D. ROCKEFELLER IV, actment of Medicare, as part of Social creases Part B premiums for seniors by Hart Senate Office Building, Security, was one of America’s great $11 a month—adding up to an extra Washington, DC. triumphs. When the country said its $1,240 for individual seniors over the DEAR SENATOR ROCKEFELLER: The under- older and disabled citizens would have next 7 years and an extra $2,480 per signed national, state and metropolitan or- health security for the first time in ganizations, representing more than 5,000 couple on Medicare. That is on top of hospitals and health systems nationwide, America’s history, we took one of our everything else they are already spend- greatest leaps as a nation. Before its cannot support the conference report on H.R. ing on health care. 2491, the budget reconciliation bill. Our rea- enactment, less than half of this coun- There is plenty more. son is straightforward: as it stands, this leg- try’s senior citizens had any kind of Remember the BELT idea when we islation, viewed in its entirety, is not in the health insurance. An illness or acci- had the Senate reconciliation bill on best interest of patients, communities and dent or health problem would imme- the floor a few weeks ago? It is gone in the men and women who care for them. diately crush someone in their 60’s or name, but not in spirit. Hospitals and health systems support the 70’s or 80’s, or wipe out his or her chil- Obviously, $270 billion in cuts means stated goals of the conference report—a bal- dren and grandchildren. anced budget, a strengthened Medicare trust a lot less money for payments to doc- fund and restructured, more efficient Medi- That is why Medicare was created, tors, hospitals, labs, and other health care and Medicaid programs. In fact, we have fought over, and ultimately enacted. care services. But what happens if the offered several concrete and reasonable al- And it has worked. The 97 percent of targets in this budget are missed? Well, ternatives to achieve these goals without America’s seniors—30 million people— before, the BELT was whipped out, and significantly reducing the quality or avail- now can wake up every morning, know- it was actually called that in the Sen- ability of patient care. For the most part, ing Medicare is there. It has lifted sen- ate bill. Now it has been given a more these alternatives were rejected. In this long budget debate, America’s hos- iors out of the poverty that the crush- subtle name, but it’s still plenty lethal. ing costs of health care used to bear pitals and health systems have been guided It is called the lookback—this budget by principles based on ensuring good patient down on them. It has given them the tells the Secretary of Health and care now and in the future: peace of mind that they are not an Human Services that he or she will The health care protection for our nation’s overwhelming burden to their children have to make last-minute, extra, sur- most vulnerable populations—the elderly, and grandchildren. It has given them prise cuts in Medicare payments if for the poor, the disabled and millions of chil- the dignity to live the later years with- some reason all the cuts made before dren—is inadequate. out the terror of what will happen to didn’t go deep enough. This budget has The tools which could enable hospitals and them if they fall or need surgery. health systems to continue to provide high to have this kind of last-minute Medi- quality care to beneficiaries in the new Med- Mr. President, we are talking about care guillotine built in. This budget icare marketplace are insufficient. The nec- 30 million senior citizens whose aver- has to get $270 billion out of Medicare, essary tools were included in the House- age income is less than $17,000. We are no matter what, or there won’t be $245 passed Medicare Preservation Act, but were talking about 330,115 senior citizens in billion to dole out in tax breaks. significantly diluted during the conference West Virginia whose average income is It goes on and on, Mr. President. process. around $10,000. We are talking about Changes, cuts, setbacks, weakening of We have consistently stated that the budg- older Americans who already spend standards—it is all here to cut Medi- et reductions in Medicaid and Medicare re- main too deep and happen too fast. Hospitals one-fifth of these meager incomes on care by $270 billion. and health systems are willing to shoulder a health care expenses that are not cov- In this budget, senior citizens are fair share of the reductions needed for a bal- ered by Medicare—which include Medi- supposed to fend for themselves. Before anced budget. But the reductions in the con- care premiums and deductibles, pre- this budget, they were protected from ference report will jeopardize the ability of November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17287 hospitals and health systems to deliver qual- I do not believe the Department of cuts are necessitated by the burning ity care, not just to those who rely on Medi- Education should become the third mania on the part of the Republicans, care and Medicaid, but to all Americans. largest consumer lender in the coun- as part of the budget package, to give Although we cannot support the con- ference report, we stand ready to work with try. That, indeed, is where it is headed tax breaks to wealthy people. Make no Congress and the Administration on a fair if we go to a full, direct lending pro- mistake about it, that is the connec- approach to reducing spending, balancing the gram on student loans, consequences tion. If the tax breaks were not in this budget and protecting the availability and which I think need to be carefully package, these drastic cuts would be quality of patient care. thought out and reviewed. ameliorated to a significant degree. Sincerely, Mr. President, I also wish to speak Then you could argue about reducing Signed by 84 hospital plans. about the child care provisions in this the deficit and how you go about doing Mr. ABRAHAM. Mr. President, I bill. I am pleased that we have, I think, it in terms of spending cuts. But the yield 5 minutes to the Senator from some very strong child care provisions. problem is compounded in this package Kansas. The bill combines $10 billion in manda- Mrs. KASSEBAUM. Mr. President, I because there is a burning mania on rise to strongly support the legislation tory spending and $7 billion in discre- the other side to give tax breaks to before us, the Balanced Budget Act of tionary spending into a consolidated wealthy people. Kevin Phillips, 2 days ago, in an 1995, because I think it reflects sound system for providing child care for budget and policy priorities that will children from low-income families, in- interview on the radio said: be of enormous benefit to this Nation cluding those working their way off Under the camouflage of deficit reduction and cuts like those in Medicare and Medic- through the next century. welfare. This is over 7 years. Again, I think aid, the new budget includes dozens of new This is really what it is about, trying and enlarged tax breaks, loopholes, and cor- to lay out a roadmap that is going to when we recognize that 70 percent of the mandatory funds are to be used for porate welfare programs. The tax cuts for or- provide change, provide flexibility, pro- dinary Americans are peanuts, but the spe- vide initiative, that can give us a families making the transition from cial deals are big stuff. welfare to work and for those at risk of strong program to carry us through the And he goes on to say: years and for the next generation to going on welfare, and a substantial por- tion of the remaining funds must be It is doubly impolitic to drive the budget come and generations after that. deficit down to zero by cutting medical, edu- There may be some concerns about used to help low-income working fami- cational, and entitlement programs while this turn or that turn. It is an enor- lies who are not and have not been on corporate and upper-bracket tax breaks con- mous package of very important initia- welfare to meet their child care needs tinue to soar. tives. I have great confidence, Mr. as they are, indeed, struggling to sta- That is what is happening here. We President, that we can make it work, bilize themselves in the workplace. are hearing talk about, ‘‘Oh, we are and it will require the best efforts of Equally important, the bill recog- going to protect the next generation all on both sides of the aisle and work- nizes we cannot ask parents to leave and our children.’’ What about the chil- ing with our State legislatures and our children home alone as a condition of dren today, who are going to be sent communities to see it is accomplished. receiving welfare. Therefore, welfare into the next generation stunted be- I would like to speak briefly about families with a demonstrated need for cause the nutrition programs have two parts of this package that I have child care may not be sanctioned for been cut, the health programs have been most directly involved in. One is failing to meet work requirements in been cut, the education programs have student loans. This legislation includes States that do not offer child care as- been cut? What about young men and $4.955 billion in savings in Federal stu- sistance. women who will not get the chance for dent loan programs over the 7 years. We need to break a cycle of depend- a college education because of the cut- Earlier today, the ranking member of ency on welfare, but we need to do it backs contained in this package, at the the Labor and Human Resources Com- by protecting children and having chil- very same time that people at the mittee and colleague from Massachu- dren have the stability of knowing upper-income brackets are getting setts, Senator KENNEDY, said these pro- they are cared for, are wanted and large and significant tax breaks? visions would help banks and guaranty loved in an environment that will help There is obviously a hidden agenda agencies at the expense of students. them succeed. I believe we do that by contained in this budget package. The I just point out, indeed, that is not strong child care provisions which real- Speaker of the House let it out of the the case. Seventy percent of the sav- ly help families begin to move off the bag a few days ago when, speaking to a ings are achieved by reducing subsidies welfare rolls. group, he said: to or imposing new fees on banks and I think there are some very positive Now let me talk about Medicare. We don’t guaranty agencies. None of the savings provisions. I urge colleagues’ support get rid of it in round 1, because we don’t are achieved by increasing costs to stu- for this legislation and thank all those think that would be politically smart. dents or their parents. who played a major role in drafting and We don’t get rid of it in round 1, because It is very important that this is un- working on this legislation. we don’t think that would be politically derstood in the public where a message I yield the floor. smart. has been put out that is totally erro- Mr. EXON. Mr. President, I yield 5 So, it is going to come in round 2 and neous about the effects on students. minutes to the Senator from Maryland. in round 3. They assert they are pro- The remaining 30 percent of savings are The PRESIDING OFFICER. The Sen- tecting Medicare and right here is evi- achieved by capping the direct loan ator from Maryland is recognized for 5 dence that it is the beginning of the program at 10 percent of loan volume. minutes. end of Medicare. We have Republican This would not change the level of the Mr. SARBANES. Mr. President, first, leaders who boast about the fact that loan or the amount of the loan. A di- I commend the distinguished Senator they opposed Medicare when it was put rect lending program may mean the from Nebraska, the ranking member on into place, and then they try to make students may get their loan money the Budget Committee, for his very us believe they are out to protect Medi- more quickly, but it does not have any fine leadership throughout this budget care. Medicare is being cut deeply, effect on the amount or interest rates debate. We are deeply appreciative to again to give these tax breaks. of those loans. him for his extraordinary efforts. The fact of the matter is—and this is In addition, the bill makes income- Mr. President, the basic fact is that my judgment—part of this hidden contingent repayment of student loans drastic cuts are being made in Medi- agenda is a major shift of benefits, eco- available to all students, not just those care, Medicaid, basic health programs, nomic benefits in this country, from participating in the direct loan pro- in nutrition programs to nourish our ordinary people, from middle-income gram. I remain concerned about the young people, school lunch, school people to the very wealthy. If you as- risk that the direct loan program poses breakfast, food stamps, in educational sert this the other side says, ‘‘Oh, it is to taxpayers. That is why I believe programs which make it possible for class warfare.’’ The class warfare is Congress is being fiscally responsible young people to go to college, and in being waged by those who are reaping by demanding to see how it works be- environmental programs to protect the benefits disproportionately in this fore expanding it. clean air and clean water. These deep society. S 17288 CONGRESSIONAL RECORD — SENATE November 17, 1995

They say, ‘‘Oh, don’t do class war- ing that, as Senator KASSEBAUM indi- will reel off an impressive list of rea- fare.’’ In the meantime, the statistics cated earlier, regarding the student sons why we ought to move forward. show—and listen to these statistics—— loan program insofar as it affects stu- By the time 7 years have passed and The PRESIDING OFFICER. The time dents, the volume of loans remain the budget is brought into balance: of the Senator has expired. unabated, at levels that have always GDP will grow by an additional $10.8 Mr. SARBANES. Will the ranking been out there, and there are no billion; interest rates will drop, and member yield me 2 additional minutes? changes in the cost of loans to stu- Americans will boost their spending Mr. EXON. I yield my colleague 1 ad- dents. Moreover, there are further pro- power through an additional $32.1 bil- ditional minute. visions in the bill that will actually lion in disposable income; the buyers of Mr. SARBANES. Listen to these sta- provide students with student loans a $100,000 home would save more than tistics. with the opportunity to deduct interest $10,000 over the life of a 30-year mort- Federal Reserve figures from 1989, they pay on those loans. In fact, it gage; an additional 104,000 family the most recently available, show that places people in a stronger position. homes would be built and 600,000 more the richest 1 percent of American That said, Mr. President, at this automobiles would be sold; and busi- households, with net worth of at least time, I yield five minutes to the Sen- nesses would be empowered to create $2.3 million each, have nearly 40 per- ator from Minnesota. new and higher paying jobs—as many cent of the Nation’s wealth—1 percent The PRESIDING OFFICER. The Sen- as an additional 6.1 million new jobs, of American households, 40 percent of ator from Minnesota is recognized. by some estimates. the Nation’s wealth. The top 20 percent Mr. GRAMS. Mr. President, I rise Impressive statistics, but what does of American households worth $180,000 with great pride today in support of all this really mean on Main Street? or more, have 80 percent of the coun- the Balanced Budget Act of 1995. Well, for an average American family try’s wealth—80 percent. I hear a lot of talk from the other with two kids, a mortgage payment, The income statistics are equally side of the aisle about cuts. The major car and student loans, a dog and a cat skewed. The lowest-earning 20 percent cuts are going to be in Washington’s and lot of monthly bills, a balanced of Americans earn 5.7 percent of the ability to take more of the taxpayers’ Federal budget would put at least after-tax income. The top 20 percent of money. The hidden agenda is a bal- $1,800 a year back into the family bank American households have 55 percent anced budget and a brighter future. account. of the after-tax income. And, if there has been a growing gap of That is a pretty good incentive for The United States is now the most wealth, it has occurred under Demo- passing a balanced budget in 1995: save unequal industrialized country, in cratic programs, and it is time to money and get a tax break, because we terms of income and wealth, and we are change that. have also promised to cut taxes for growing more unequal faster than the This bill, more than anything else, is middle-class families—another promise other industrialized countries. And this about promises—making promises, and we are keeping with this legislation. package is going to intensify that keeping promises. This Congress is no longer willing to trend. The American people have every rea- let the Government gamble away the Make no mistake about it, that is son to be cynical about political prom- taxpayers’ hard-earned dollars as if what this package will do. It is shifting ises. they belonged to Washington. In fact, benefits from lower-income and work- Yet something resonated with the we are going to keep those dollars out ing people to the upper end of the voters when we went to the people last of the Government’s hands in the first scale. November and promised we would take place. People on Medicare, earning $15,000 a this country in a better direction if The centerpiece of our $245-billion year, are going to suffer in order to they elected a new majority to Con- tax relief package is the $500 per-child give a tax break to the very wealthy. gress. tax credit, and I am proud that my col- I urge the rejection of this package. We laid out a plan for the Nation’s leagues stood with my good friend, The PRESIDING OFFICER. The time future unlike anything the people had Senator ABRAHAM, and I to ensure that of the Senator has expired. been promised over the last 40 years. this desperately needed provision re- The Senator from Michigan. The legislation before us today is mains at the heart of our balanced Mr. ABRAHAM. I yield myself such proof that there is a better way—and budget plan. time as I need briefly, and then I will the vision it reflects is based on two The tax credit alone will allow 28 yield to the Senator from Minnesota. fundamental promises we made to the million taxpaying households to keep As I said several times here today, voters: First, we promised we would $23 billion of their own money each apparently in some parts of this coun- balance the budget in 7 years. And sec- year. try people making less than $75,000 a ond, we promised we would cut taxes In my home State of Minnesota, the year are ‘‘the most wealthy Ameri- for working-class families. tax credit would return $477 million an- cans.’’ In my State that is not the case. Mr. President, the centerpiece of the nually to families who work hard, pay Mr. President, 65 percent of the tax legislation before us is our promise to their bills, and struggle every day to cuts contained in this package will go balance the budget by the year 2002. care for their children without relying to people and families making less If you want to know why 83 percent on the Government. than $75,000 a year. Mr. President, 80 of the American public say balancing In addition, 3.5 million households percent will go to people whose fami- the budget should be the top priority of nationwide will find that the $500 per- lies make less than $100,000 a year. In this Congress, these statistics speak child tax credit has completely elimi- Michigan, those people are not wealthy volumes: Every year, the Federal Gov- nated their tax liability. people. Maybe they are in other parts ernment is spending billions and bil- With our Balanced Budget Act, this of America, but people making less lions more than it takes in. As a result Congress has kept the solemn promises than $75,000 are not wealthy people in of four decades of fiscal insanity, the we made to the American people. Yet my State. national debt today stands at nearly $5 without even waiting for the bill to ar- As to the so-called tax cuts for trillion. Every child born today in the rive at his desk, President Clinton is wealthy, I point out as I have already United States of America comes into promising to veto it and stop the bal- numerous times in relationship to this this world already saddled with more anced budget in its tracks. bill, there are $26 billion in loophole than $19,000 in debt. The President says he wants a bal- closings contained in this legislation, So the first, most important result of anced budget—wants it whole- closing loopholes on these so-called a balanced budget would be to free our heartedly, he claims. Balancing the wealthiest Americans, individuals and children and grandchildren from the budget was one of the central themes corporations, which largely offsets economic burden they will inherit from of his 1992 campaign, and I remember whatever tax cuts might benefit people this generation—a burden they did not when he said: ‘‘I’ll tell you why you in those categories. ask for, and certainly do not deserve. should vote for me. I know how to bal- Finally, with regard to students, we Ask an economist about the other ance a budget. I’ve balanced 11 budgets should point out to the students watch- benefits of a balanced budget, and they as Governor of Arkansas. One of the November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17289 first things I’ll do when I get to Wash- to be thankful for, this may be the best nursing home care, but now will. They ington is send Congress a balanced meal of the year. have worked hard to raise their own budget.’’ If your family is at all like mine, family, save money for their kid’s edu- Of course, that turned out to be a there will be turkey and gravy and cation, and for their own retirement. pie-crust promise—easily made, easily some kind of Jello salad. At dinner, Now they will have to deal with extra broken. there will be a card table for the little costs from every angle. Since taking office nearly 3 years kids, and a couple of bigger kids who If they are working but low income, ago, Bill Clinton has never presented will not want to sit with them. they will not get the $500 per child tax Congress with a budget that balances— After dinner, there will be games of credit that the Congress is touting, be- or comes anywhere close, for that mat- Pinochle. There will be teenagers cause they will not pay enough taxes ter. standing around, wishing something to get the deduction. If they do not In the last two plans he has dropped exciting would happen. There will be have children yet, they will face the on the Capitol doorstep, the deficit people in the living room, just starting fact that Congress will be taking away hovers around $200 billion every year, to get sleepy. The television will be on, the earned income tax credit they have far, far into the future. and the Detroit Lions will be losing counted on. And we voted on both of those plans again. And best of all, throughout the If they do have kids, and do get the here on the floor of the U.S. Senate. day, there will be many stories. tax credit, they are going to need the Both failed 99 to zero, and these are the The people in my life tell stories money. Because when grandma cannot plans that the President brags about. about many things. Stories about fam- stay in the nursing home because Con- Mr. President, Congress is going to ily members who could not come this gress cut Medicaid, the family is going balance the budget because we prom- year or family members who have died. to have to build a new room onto the ised the American people we would. Stories about war. Stories about work house. We are going to cut taxes because we or friends or sports. Stories about a Fourth, there will be the college-age promised the American people we new birth, or an impending marriage. students and their story. They want to would. In most years, there is not much talk prepare themselves for a world where We are going to turn this Govern- about government—unless something they know they will have to be quali- ment around and start putting it to really bad is about to happen. fied to compete. They are willing to work on behalf of the taxpayers be- I have a feeling I am going to hear a swallow their pride and ask their par- cause we promised the American peo- lot of talk about government this year. ents for help; they are willing to work; ple we would. Right now, I can almost hear 10 stories and they are willing to pay off loans ‘‘The Man from Hope’’ is quickly that might be told around the tables at after college. But none of that will earning the reputation around here as Thanksgiving this year, across this matter. The Congress is going to take $5 bil- ‘‘the Man from Hope Not.’’ He says he great land. Ten things people wish they lion out of their student loan pro- wants a balanced budget, but he se- did not have to talk about, but they grams, and give it to the banks. Con- cretly hopes he’ll never have to sign will: one. First, there will be the story about gress is going to decimate the Direct Lending Program, which gives students Mr. President, Bill Clinton cannot Medicare. The elders always tell sto- their money more efficiently, and continue to say in public that he sup- ries best, remember the bad times eliminates bureaucracy and the middle ports a balanced budget, tax cuts, and clearest, and complain about the Gov- man. In addition the budget eliminates welfare reform, and then return to the ernment loudest. Next Thursday, after Perkins loan funding and drops 280,000 private confines of the Oval Office to grace has been said, an old man is veto every piece of legislation that students from Pell grants. going to pause, with the mashed potato Fifth, there will be the story of the would bring the budget into balance, spoon still in his hand, and say ‘‘You younger students, who need to have a cut taxes, and reform welfare. hear what they’re going to do to Medi- relevant public education to get them My colleagues and I have great care?’’ ready to go on to college, into some dreams for this Nation and its children, This story, like the rest, is a sad one. other form of training, or directly into Mr. President, and the American peo- The man knows that the budget needs work. For these students, the Congress ple are counting on us to heed the to be balanced for the generations he is going to cut almost $4 billion from words of the great Winston Churchill can see around the table. He has heard discretionary but vital education pro- and ‘‘never, never, never give up.’’ that there has been fraud and abuse in grams, including title I basic skills in- With a balanced budget at stake and Medicare billing. He knows that he is struction for 500,000 additional stu- the future of this Nation at stake along going to have to sacrifice for the bet- dents, State student incentive grants, with it, this Congress has no intention terment of the country. He just is not school reform, Head Start, and of giving up and turning our backs on going to understand why Congress is AmeriCorps. this moment in history. going to take more money out of his Sixth, there will be one of the most That is a promise. Social Security check to give a tax tragic stories of all—the story of what Thank you, Mr. President. I yield the break to people who do not need it. will happen to all the children in the floor. Second, there will be the story about great country of ours. Services to help Mr. EXON. Mr. President, I yield 5 Medicaid. The family is together, but children, from Medicaid to pay their minutes to the Senator from Washing- they have to arrange to visit grandma medical bills, to school lunch and day- ton. at the nursing home. The family will care nutrition programs, to childhood The PRESIDING OFFICER. The Sen- go visit, but they will now have to immunizations are all going under the ator from Washington. worry about whether Congress is going ax in what the majority party is paint- Mrs. MURRAY. Thank you, Mr. to allow States to gut nursing home ing as some kind of epic and heroic mo- President. standards that protect grandma’s ment in American history. TEN THANKSGIVING STORIES health, safety, and financial security. These cuts will certainly be historic. Mrs. MURRAY. Mr. President, next They will have to worry about This is probably the first time in his- Thursday, families from Forks, WA to whether grandma will be the lucky one tory that the American Government Fort Lauderdale, FL will be coming to- to get Medicaid funding when their declared war on its own children, when gether to enjoy each other’s company State has to choose between paying for it knew better. If the Congress wants and to celebrate a holiday unique to pregnant women, children, the elderly, to balance the budget, American fami- the history and heritage of our coun- or the disabled, because Congress gave lies are all for it. But Americans are try. them less money to meet the growing pretty steadfast when their own family The tables will be heaped with food, needs they face. is threatened, and this is a battle that prepared in many kitchens and brought Third, there will be the story of the the majority party in Congress should together at the house of one family. adult children in the family, who never lose. For some families in our country, who before had to worry about being held Seventh, there will be the story of do not necessarily have all that much responsible for the costs of grandma’s the welfare mom. This member of the S 17290 CONGRESSIONAL RECORD — SENATE November 17, 1995 family may not be sitting at your table that I am thankful. When it is re- Balance the budget in 7 years, this year, but she comes to many turned, I intend to work very hard with End welfare as we know it, homes for Thanksgiving, and her sis- my colleagues to ensure we will then Save and strengthen Medicare, and, ters may one day come to your table or pass a budget that is good for our chil- Reduce taxes in a way that provides mine. Her story is one of tragedy piled dren, our families, and our future. relief to families with children, stimu- on top of tragedy. Mr. ABRAHAM. Mr. President, I lates growth, and generates jobs. Maybe she came from an abusive yield 5 minutes to the Senator from The bottom line is this: the future of marriage, where she took beating after Tennessee. our Nation depends upon whether we beating, and only got out after her The PRESIDING OFFICER. The Sen- have the courage to balance the budg- abuser started hitting her kids. She ator from Tennessee is recognized for 5 et. probably did not have the benefit of minutes. Our current path—if we do nothing— education and training. She most like- Mr. FRIST. Mr. President, I rise in leads to: Uncontrolled federal spending and ly had all kinds of things stacked support of the Balanced Budget Act of borrowing, and skyrocketing annual against her. Invest in her life now, with 1995. deficits—$200 to $300 billion by the year child care and training, and she’ll be a The American people have been 2000, and higher deficits thereafter. tax-paying citizen for years to come. watching the debate over the continu- In fact the deficit increases $335,000 But this Congress is going to cut ing resolution this week, and based on every minute—which means that it has child care, nutrition services, and kick the calls that have come into my of- increased roughly $1 million in just the this woman off public assistance as fast fice, they recognize that this debate is amount of time that I have been speak- as possible, without the support that about one thing: whether or not we will ing on the Senate floor. would allow her to join the work force. have a balanced budget. Another $1.2 trillion added to our na- She does not have much to be thankful After President Clinton was elected, tional debt between now and the year for with the passage of this budget. he used his promise to balance the 2000—which will bring the total surging Eighth, there will be a story about budget as an excuse to raise taxes. past $6.7 trillion by the turn of the cen- the environment. A 12-year-old may Today, all Americans have higher taxes, but they still do not have a bal- tury; ask why the Government wants to sell A Medicare program that goes broke; ance budget. her heritage to big companies. She a Medicaid program that doubles in Contrary to what he says, the Presi- wonders about the polar bears and cari- size; dent has never proposed a balanced bou that now live in the Arctic Na- An enormous and unsustainable tax budget of his own. His latest plan, tional Wildlife Refuge. burden on young workers who will be which he says will balance the budget She asks whether the Native people forced to pay 82-percent of their wages in 9 or 10 years, would actually result she has read about, or whether her in taxes to support prolific federal in deficits of more than $200 billion as family, if she happens to be a member spending; and of Gwich’n tribe, will be able to con- far as the eye can see—including a defi- The first generation of Americans in tinue to live where they have lived for cit of $209 billion in 2005, the year our Nation’s history to have fewer op- 20,000 years—on the lands they love, President Clinton claims he would portunities than their parents. subsisting on a now-abundant supply of eliminate the deficit. And yet, if we do balance the budget, wildlife. She sighs and asks her elders The President’s budget is so phony if we are able to impose fiscal dis- not to sell America’s lands, our na- that no Democrat in Congress would cipline on the massive federal bureauc- tional forests, our national refugees, even introduce it for a vote in the racy, the benefits are very real, and the our national treasures—her heritage. House or Senate. When a Republican possibilities are endless for our pros- Ninth, there will be the story of the Senator introduced it, it was defeated perity as a Nation. family farm. The wheat farmer from 96–0. According to the Joint Economic eastern Washington, who has seen con- While Clinton talks about a balanced Committee, a family with a $75,000 car gressional Republicans adopt a Free- budget, Republicans have done the loan and an $11,000 student loan could dom to Farm Proposal that couldn’t heavy lifting, and made the hard deci- save $1,771 a year if interest rates drop even be approved by the House or the sions necessary to get it done. Our plan another percentage point under the Re- Senate. The wheat farmer, who has is certified by the nonpartisan Congres- publican plan, and $2,828 a year if inter- seen the safety net for farmers elimi- sional Budget Office, which President est rates return to the levels of the nated, the safety net that has existed Clinton himself has said is the sole au- 1950s. for almost 60 years. thority on budget authenticity. According to the economic forecast- Farmers do not need this safety net With the continuing resolution ing firm of DRI McGraw-Hill, if we bal- when prices are good, but when prices passed yesterday and the plan before ance the budget by the year 2002, the are bad, these farmers, who supply the the Senate today, Republicans con- gross domestic product will be $170 bil- staple foods of our society, need our tinue to show their unwavering com- lion higher than without a balanced support. They deserve our support. The mitment to a balanced budget. The budget. That represents a 2.5 percent family farmer, who works to grow the President as a candidate promised to increase in productivity for businesses, food that provides the bounty for balance the budget in 5 years. All we and about $1,000 per household higher Thanksgiving dinners for families are asking for is 7 years. Republicans standard of living for families. across our Nation—this farmer is for- honestly believed, and some of us are And even Wall Street is responding gotten in the Republican budget. holding out hope, that President Clin- positively to the current situation, Tenth, the last story, will be a story ton will show some leadership and help closing at a record 4969, while the 30 of real thanks. After all these other us balance the budget. year Treasury bill rate fell to 6.23%. If stories, after the eyes roll skyward, He has promised to balance the budg- Congress fails to pass a balanced budg- after the anger, after the frustration, et in 5 years, then 10 years, then 9 et plan, then the American people they will all join hands and give years, then 8 years, and as recently as should be scared, because the markets thanks. The members of this family October 19, the President said that he will lose faith in the U.S. government. will thank their God that they are all thought we could reach a balanced All this is possible by only slowing together for the holiday. They will be budget in 7 years. But he rejected yes- the growth of federal spending. Under thankful for the good food and warmth terday’s continuing resolution, and he the Republican plan, spending on Medi- of family, but mostly, they will be very will likely veto this bill. The President care, Medicaid, welfare, food stamps, thankful that the Members of Congress is not committed to balancing the the Earned Income Tax Credit, student are also home with their families, and budget. He is committed to increasing loans, you name it, will continue to not doing more damage from the floors spending and an ever growing Federal grow, only at a slower rate. of the House and Senate. Government. As James Glassman said in a recent Mr. President, I continue to worry The plan before us today fulfills our editorial in the Washington Post: about the priorities in this budget. We promises to the American people. It If Congress’ budget becomes law, the social all know this budget will be vetoed; for will: compact will actually be strengthened. Not November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17291 only will the government keep its commit- proach is that we should begin handing Why not do it?’’ Because every big ments to the elderly and the poor on health out new benefits today and count on spender around, every liberal in Con- care, it will also meet an even more impor- future Congresses and future Presi- gress says he or she wants to balance tant obligation to the public that is abro- dents to make the most difficult the budget, and yet when it comes gated 30 years ago—to spend no more than it takes in. choices to actually reach a balanced down to getting the opportunity to ac- budget. It only increases the likelihood tually do it, we do not do it. The Republican plan is a credible, that the budget will become even more I hope those people who ask that reasonable and truly historic plan to unbalanced, hardly a legacy we want to question at the townhall meetings are reverse the excessive spending of the leave to our children and our grand- watching carefully tonight, because past, while continuing to provide a children. That will not do anything to now you know why it is so difficult to sturdy safety net for the poorest Amer- reassure the international financial do something that seems so easy back icans. The plan will save and strength- markets, much less address the in- home. en Medicare, transform the Medicaid creasing cynicism our citizens feel to- The second thing is listening to some and Welfare programs and produce un- ward our Government and its elected of these speeches—I do not mean this precedented economic growth for gen- officials. in a demeaning way or insulting way to erations to come. I strongly support In order to pay for a huge tax break, anyone, but I really feel that so many the Balanced Budget Act of 1995 and half of which would go to those making people right now are trying to hold urge its passage. $100,000 a year, programs affecting onto the past with white knuckles. I yield the floor. health care for the elderly, the disabled Those individuals who rejoiced back in Mr. ROBB addressed the Chair. and the poor, programs affecting the the 1960’s when Government took The PRESIDING OFFICER. The Sen- environment and education, programs greater control of our lives cannot be- ator from Virginia. affecting some of our most vulnerable lieve that times are changing and that Mr. ROBB. On behalf of the Demo- citizens who will be cut more dras- the people are no longer going to toler- cratic manager, I yield myself 4 min- tically than would otherwise be nec- ate that. utes. essary is not fair. If you stop and analyze the elections The PRESIDING OFFICER. The Sen- My message to my colleagues and the of 1994, it is an overwhelming revolu- ator is recognized for 4 minutes. President today is that there is a bet- tion at the polls. Mr. ROBB. Mr. President, I rise to ter way to balance the budget, a way And who was defeated? All you have oppose the budget reconciliation bill which I believe can be supported by to do is get the ratings. You know, peo- before the Senate. I do not oppose the Members on both sides of the aisle, as ple know who the big spenders are and Republican budget because it is pro- well as the President and the American who they are not. The National Tax- jected to balance the unified budget by people. That way is to postpone a large payers Union, many others, have rat- 2002, because I believe we can and tax cut until we achieve balance and ings. Those individuals who lost at the should balance the budget over that spread the burden of deficit reduction polls in 1994 were the ones who were time period. I oppose this budget be- more fairly and evenly across the Fed- the big spenders. cause I believe it is the wrong way to eral budget. Only if we demonstrate to This revolution started, really, back reconcile spending and revenues. the American people that a plan is fair in 1980 with the election of Ronald Instead of a bipartisan consensus, it and equitable will we be able to main- Reagan. Of course, he did not have the reflects a too narrow, ideological agen- tain the road to balance. support of Congress, so he could not da that does not represent the best As the Virginia voters showed just 10 get the things done he wanted to. I will long-term interests of the country. And days ago, those who toil at the ideo- always remember looking at television I know that the leadership on both logical extremes proceed at their own on the Wednesday morning after the sides of the aisle, at least in this body, peril. It is true that the vast majority election, that landslide election when can and would like to do better. of the American people want to balance Ronald Reagan won in 1980, and it was I have no doubt that my good friend the Federal budget, as I do. But the the defeated person who had run and colleague, Senator DOMENICI, if not events of the last few months reflect against him. He was on the ‘‘Today constrained by some Members of his the fact that they want to do it in a Show,’’ and he made a statement I will own party, mostly in the other body, way that reflects a broad consensus. always remember. He said, this is a would develop a more responsible, Mr. President, I stand ready to work quote, ‘‘I cannot believe the people of more bipartisan budget. As a Democrat with both Republicans and Democrats America have so overwhelmingly repu- who supported both the original Senate to find that consensus. diated classic liberalism.’’ budget resolution last May and the Mr. President, I yield the floor. And that is exactly what happened. continuing resolution last night that Mr. ABRAHAM addressed the Chair. But the problem is we never were able committed us to a balanced budget by The PRESIDING OFFICER. The Sen- to carry out those programs, because 2002, using CBO numbers, which we ator from Michigan. we had a hostile and a liberal Congress. may revisit shortly, I have always been Mr. ABRAHAM. I yield 4 minutes to That is changed now. That is all ready to work with Presidents of both the Senator from Oklahoma. changed. For all those of you are who parties and in Congresses having both The PRESIDING OFFICER. The Sen- sitting around here wringing your Democratic and Republican majorities ator from Oklahoma is recognized for 4 hands saying all these bad things are on a bipartisan basis to solve the long- minutes. going to happen, all these people are term fiscal challenges facing our Na- Mr. INHOFE. I thank the Senator for going to be cut when, in fact, they are tion. yielding. not going to be cut, all these horrible Unfortunately, this year’s budget I probably will not take that much things we have been listening to to- process has evidenced more partisan time. But, Mr. President, I have been night, just stop and think of it in this politics and political expediency than sitting here and listening and watch- context: fiscal responsibility. As my colleagues ing. And it has been really enlighten- In 1993, we passed—at that time, will recall, the original Senate budget ing to me to see what is going on and President Clinton had control of both resolution required us to enact legisla- how the debate has been going. the House and the Senate—and we tion projected to actually balance the When I go back to Oklahoma and we passed the largest single tax increase budget before we could proceed to con- have townhall meetings and I talk to in the history of public finance in sideration of a tax cut. people back there, the ones I have been America or anyplace in the world. When the resolution came back from chastised about for referring to as the Those are not the words of conserv- the conference with the House, how- ‘‘real people of America,’’ they ask the ative Republican JIM INHOFE; those are ever, tax cuts had been added up front, question over and over again, ‘‘Sen- the words of the Democrat leader of and the deep spending reductions had ator, why don’t you just do it? All this the Senate Finance Committee, the been moved into the next century. The talk about balancing the budget. Why chairman at that time. message that this budget reconcili- don’t you just do it? We have to do it. So I suggest that if anyone was op- ation bill sends by maintaining this ap- We have to live with a balanced budget. posed to that great tax increase that S 17292 CONGRESSIONAL RECORD — SENATE November 17, 1995 even now President Bill Clinton says electronic transactions, but also for These tax cuts will also help family was too great of a tax increase, if you the security and privacy of the medical farms and small businesses by reducing are opposed to it, then you should be information. Similarly Senator BOND, the estate tax and lowering capital for these tax reductions now. For all the other original sponsor, noted in his gains. practical purposes, all we are doing is introductory remarks that ‘‘most im- Republicans promised tax relief for repealing part of the damage we did to portantly, legislation is needed to pro- working families and we have deliv- the American people in 1993. tect the privacy and confidentiality of ered. So I wind up—my colleague, who I re- patient data.’’ Their pending Senate Mr. President, while Republicans spect so much, from Minnesota, Sen- bill references the need for privacy have kept their promises to the voters, ator GRAMS, made a talk and he ended standards for health information to be President Clinton seems to want to for- up quoting Winston Churchill, and I established by regulation, and lists get the promises he made. His alter- think I will do the same. I can tell you four principles to govern such stand- native is to ‘‘just say no.’’ He stated folks on the other side of the aisle that ards. that he would balance the budget in 5 the people of America know better. The conference report includes no years, then he said 7 years, then 10 They do not want the patterns of the privacy protection. Privacy is never years. He has done more flips and flops past. They realize we have to do some- mentioned in the entire new proposed than a flapjack. thing. Winston Churchill said: ‘‘Truth section. Business interests are pro- Now President Clinton is going to is incontrovertible, panic may resent tected. Trade secrets are expressly pro- veto the continuing resolution that it, ignorance may deride it, malice tected. The security, integrity, and simply states that the Congress and may destroy it, but there it is.’’ And confidentiality of the data is protected. the President should agree to reach a that is what we are going to learn to- But personal privacy is not. Indeed, al- balanced budget in 7 years based on re- night. I yield the floor. though the section contains a defini- alistic economic assumptions. It doesn’t say how that should be THE NEED FOR PRIVACY PROTECTION tion for purposes of the section of ‘‘in- Mr. LEAHY. In the few hours I have dividually identifiable MedicarePlus reached, just that a balanced budget had to review the Republicans’ con- and medicare enrollment information,’’ should be the goal. I should note that several Democrats ference report on budget reconcili- it is never employed in the section. in both the House and the Senate voted ation, I have come upon another major What is needed before we proceed to for this commonsense continuing reso- change in law that is being enacted computerize personal health care infor- lution calling for a balanced budget in without study, review or open debate mation is the enactment of strong and 7 years. They are sincere in wanting a that can adversely affect the health effective privacy protections. That is what the Medical Records Confidential- balanced budget. My hope is that more care privacy of all of us. conscientious Democrats will join this For the past several years I have ity Act, S. 1360, is intended to pro- vide—strong and effective protections bipartisan effort for a balanced budget. been working on legislation to improve However, my concern is that still too piracy protection for health care infor- with strong criminal, civil, and admin- istrative sanctions against those who many of my colleagues are like the old mation. This session Senator BENNETT man who says: ‘‘How do I know what I and I have joined with a number of our violate our medical privacy. The privacy interests of the Amer- think, until I’ve heard what I’ve said.’’ colleagues from both sides of the aisle ican people are being disserved. Those Likewise, many in Congress don’t to sponsor the Medical Record Con- participating in Medicare are entitled know how to vote until they hear from fidentiality Act, S. 1360. Just this week to have their privacy protected, as are the White House. I encourage my col- Senator KASSEBAUM chaired a hearing we all. I urge my colleagues from both leagues to put the people of this coun- on the bill before the Labor and Human parties and both Houses to join with try first, before the shortsighted par- Resources Committee. That hearing me and reject this effort to proceed tisan politics practiced by the White brought home the fears that many without the necessary protections for House. have of the computerization of our individual privacy. This is the wrong Mr. President, the American people medical files. That development is al- way to proceed. are beginning to realize the White ready underway and is part of our mo- Mr. GRASSLEY. Mr. President, I rise House is engaging in gamesmanship in- tivation for seeking to enact strong in support of the Balanced Budget Act stead of statesmanship. The great Re- and effective privacy protection. of 1995. Just as many thought they publican President, Abraham Lincoln Upon seeing the conference report, I would never see the Berlin Wall fall, was certainly right, ‘‘You can’t fool all find that the Republican-dominated this is a day that I never thought I the people all the time.’’ This adminis- conference has added to the bill provi- would see—the U.S. Congress passing a tration is going to learn this lesson the sions that require the Secretary of balanced budget that uses realistic eco- hard way. Health and Human Services to adopt nomic assumptions, not rosy scenarios. My mail is now running four-to-one standards and data elements to make Over a year ago, Republicans cam- in favor of Republicans standing firm information related to health care paigned to balance the budget and cut to their commitments for a balanced ‘‘available to be exchanged electroni- taxes. The American people have be- budget and tax relief for working fami- cally.’’ This new section requiring the come justifiably cynical about politi- lies. The phone calls are overwhelm- development and use of data networks cians making promises to get elected. ingly in favor of the Republicans effort is buried in section 8001 of title VIII of Well, this budget can be summed up in to preserve Medicare and reform the the budget reconciliation bill and pro- one phrase: promise made, promise current disastrous Great Society Wel- poses a new section 1858 to the Social kept. fare programs—both part of this Bal- Security Act. The Balanced Budget Act keeps our anced Budget Act of 1995. I object to the inclusion of these pro- commitment to the American people; In talking to my colleagues they are visions at this time in this manner in we do balance the budget. And only finding the same reaction. The Amer- this bill on which debate is so dras- after the nonpartisan Congressional ican people are listening and consider- tically restricted and to which amend- Budget Office certified that the Repub- ing what is being done here in Wash- ments are not in order. I do so because lican plan achieves a balanced budget ington. And they are supporting Re- the provisions fail to provide strong did we turn to providing working fami- publican efforts to keep the promises and effective privacy protections. lies tax relief. made to the voters last fall. Our colleagues from Missouri and And let’s be clear, in 1996, 88 percent And why is public opinion shifting? Connecticut have introduced the of the tax cuts will go to families earn- The sad truth is becoming clear to Health Information Modernization and ing under $100,000, 72 percent to fami- Americans—President Clinton has no Security Act, S. 897, that seeks to leg- lies earning under $75,000. interest in balancing the budget. Presi- islate in this area of standardization of These tax cuts are targeted to help dent Clinton’s top interest is appeasing electronic data elements. When Sen- families with a $500 per child tax cred- the special interests that still control ator LIEBERMAN introduced that bill he it, a tax credit to help families meet the Democratic Party. acknowledge the need to establish the costs of adoption and relief from And what do these special interests standards not just for accomplishing the marriage penalty. want? They want to spend more, more, November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17293 and more of the taxpayers’ money. The These are just a few examples of the gas drilling in the Outer Continental special interests don’t want a balanced many good provisions in the Balanced Shelf. Oil and gas companies lease budget and tax cuts for working fami- Budget Act of 1995, and underscore the drilling rights in the Gulf of Mexico lies, that would mean less money for importance of passing this historic leg- from the Federal Government. Compa- them to spend. islation. nies pay for the leases and must also It seems the White House is com- REGARDING ENVIRONMENTAL ISSUES pay royalties on their production be- pletely captive to the special interests. Mr. WELLSTONE. Mr. President, the cause the oil and gas is a public re- They still believe that big government reconciliation bill now before us con- source. The reconciliation bill contains should dictate how to spend the tax- tains a number of provisions that are a provision that would give companies payers’ money instead of families mak- poor policy, that are unfair to those a holiday from paying those royalties. ing the decisions. I thought President least able to defend themselves and Because the leases will be considered Clinton said he got the message from that consider only short-term gain and more valuable by companies if they the November elections. Unfortu- not long-term loss. This is very clear don’t have to pay royalties on the pro- nately, it appears he was listening to from reading the Energy and Natural duction, the CBO says that the Govern- the special interests instead of the pub- Resources provisions. As a member of ment will be able to sell the leases at lic interest. that committee I can tell you that this a higher price and thus the royalty hol- Mr. President, this is a momentous reconciliation bill contains many pro- iday will make money. vote. This is a vote for a real future for visions that are just plain poor energy That is all smoke and mirrors. our children and grandchildren. For a policy, poor environmental policy, and Friends of the oil and gas industry in stronger more productive economy. It cynical politicking. Congress have taken advantage of the is a vote to preserve Medicare and re- Opening the Arctic Refuge to fact that the budget process looks only form welfare. drillings is one such provision. The at whether provisions make money in I urge all my colleagues to stop lis- Arctic Refuge is one of the last pristine tening to pollsters and the special in- the first 7 years. The royalty holiday is wilderness areas left in America. It expected to save the Federal Govern- terests who are running the White contains the Nation’s most significant House and instead of listening to the ment $130 million in the first 7 years. polar bear denning habitat on land, and This short-term savings allows us to American people who want us to keep supports 300,000 snow geese, migratory our promises, to not break faith, and to say that we have taken a step toward birds from six continents—some of pass the Balanced Budget Act of 1995. balancing the budget. those birds even make it to my State Mr. President, I now want to briefly But when the short-term election highlight a few specific provisions that of Minnesota—and a concentrated por- year politicking ends, the other shoe I am particularly pleased are incor- cupine caribou calving ground. will drop and it will drop hard. In the Despite our uncertainty about the ef- porated in the 1995 Balanced Budget long-term, the Congressional Budget fects oil drilling would have on the ani- Act. Office estimates that this royalty holi- First, is the new student loan inter- mals, there are those who continue to day will cost $550 million in lost re- est deduction. I have long fought for push for oil drilling without an updated ceipts over 25 years. Thus, while the the appropriate national investment in environmental impact statement [EIS] royalty holiday means short-term gain, education. Once again the United as required by current law. An EIS has it also means long-term pain. not been done since 1987 and even that States is investing in the minds of its The royalty holiday is a clear exam- one was not sufficient back then. We people in addition to the fixed assets of ple of corporate welfare at the expense just don’t know what drilling would to its businesses. of the Federal budget. In these times of the Arctic Refuge, and barreling ahead Mr. President, we also promised more belt-tightening and difficult choices with drilling is just poor environ- choices in health care for Medicare about priorities, we can and must do mental policy. beneficiaries. The Medicare reforms better. Further, the Gwich’in people have re- contained in this bill are going to Some have said that the royalty holi- make that possible. It is also going to lied on those porcupine caribou for thousands of years to provide their day is needed to help persuade an ail- be good for my State of Iowa. ing industry to take part in a risky Medicare is now going to reimburse food and meet their spiritual needs. I venture. However, an article in the Oc- for health care services much more have heard them speak very eloquently tober 24, 1995, Wall Street Journal re- fairly in Iowa than has been the case in and directly about what oil drilling in ports that oil companies, ‘‘* * * reg- the past. We have greatly increased the the Arctic Refuge would do to their istered robust third-quarter earnings,’’ Medicare per capita payments that will way of life. People like the Gwich’in and ‘‘* * * reported a surprising gush of be made in Iowa in the coming years. want to save the environment. But This action is going to give our Medi- they are not the big oil companies. profits.’’ Further, an October 30 Busi- care beneficiaries in Iowa more health They do not have the money. They do ness Week article states that new tech- care choices than is presently the case. not have the lobbyists, and they do not nologies, ‘‘* * * cut the cost of deep-sea We have also narrowed the variation in have the lawyers here every day. In to- production.’’ Medicare’s reimbursement from one day’s Washington environment, that I cannot stand by and watch the de- area of the country to another, so that seems to mean that their concerns are struction of safety nets that protect there will be greater equity in the use less important than the concerns of big our elderly, our children, and our most of our hard-earned tax and premium industry. needy while at the same time providing dollars. Even if whatever amount of revenue a huge giveaway for an industry that I also want to point out that we have gained were somehow worth destroying just doesn’t need it. The provisions I secured a number of very important this unique land and the lives of the have mentioned are but two examples health provisions which are going to Gwich’in, there are a number of ques- of the incredibly irresponsible environ- help preserve the rural health infra- tions regarding whether the Arctic Ref- mental policy in this reconciliation structure in Iowa: uge has oil, how much it has and what bill. The bill includes legislation I intro- the cost would be to retrieve it. Esti- Our natural resources are among the duced earlier this year to restart the mates are broad and disagreements are most important things we can leave to Medicare Dependent Hospital Program. rampant. Even I, a nonscientist, know these future generations. Our children This is going to provide greater finan- one thing for certain: there is no way and our grandchildren deserve more cial support for at least 29 small rural to tell how much revenue can be gained than what this bad energy policy, bad hospitals around Iowa. from drilling in the Arctic Refuge. New environmental policy, and shortsighted In addition, this bill includes my leg- information, however, suggests pre- politicking would leave them. I will islation to reform the Medicare reim- vious figures overestimated possible continue to speak for all Minnesotans, bursement for physician assistants and revenue. for their sense of fairness and equity nurse practitioners which will also help A second example of poor policy and and for their love and concern for the improve access to primary care serv- a huge giveaway to oil and gas compa- environment. I urge my colleagues to ices in rural Iowa. nies is the royalty holiday for oil and join me. S 17294 CONGRESSIONAL RECORD — SENATE November 17, 1995

Mr. MCCAIN. Mr. President, I want put the most vulnerable in our society The priorities reflected in this budget to commend the hard work of all my at risk; cuts that are unnecessary to are extremist, and the Nation simply colleagues in producing this legisla- balance the Federal budget deficit. will not support their ongoing imple- tion. Although there are parts that do But there is little doubt that these mentation over the next several years. concern me, in general I strongly sup- cuts were made as a direct result of the This plan will not survive its full 7- port this bill and the goal of balancing need to fund the $245 billion tax cut. year lifetime. the budget in 7 years. Mr. President, the advocates of the And I suspect, Mr. President, that it As one of the Senate Commerce Com- reconciliation measure call the tax cut is not intended to survive those 7 mittee members who drafted title IV of the crown jewel of the Contract With years. the Senate bill and served as a conferee America. The biggest cuts come in the latter for this section of this legislation, I Indeed, it is the $245 billion tax cut years, sufficiently far off to allow pan- want to clarify for the RECORD what I that drives the entire reconciliation icked State governments to lobby for believe is intended by this bill regard- package. the overturn of the brutal cuts that are ing spectrum auctions. The assurances of health care cov- scheduled to descend in 2002—25 per- Under the bill, the Federal Commu- erage for the low-income, frail elderly, cent of the total cuts in the Senate nications Commission [FCC] is man- disabled, pregnant women, and chil- passed bill occur in that year alone, 46 dated to identify and make available dren—both now and in the future—has percent in the last 2 years. for public auction 100 Mhz of spectrum. been mortgaged to pay for tax cuts. Mr. President, some who support this I believe that auctioning this and other Mr. President, though I am persuaded measure may believe in the brave new spectrum is the fairest, most equitable that the nearly half a trillion dollars in world it conceives. manner in which to allocate spectrum. cuts to Medicare and Medicaid have But there are others who support this I would hope that the Commission been made in order to fund the tax cut, measure who do not hold that view. would understand this fact and become some of our colleagues may take issue They understand that this budget is spectrum auction proponents. The auc- with that characterization. unsustainable over the full 7 years. tioning of spectrum in an orderly man- They maintain that there are other They may even hope that someone or ner—done so that the public interest is reasons to take nearly half a trillion something will rescue us from that last served both by maximizing revenue to dollars out of our health care system. years of this budget. And, some who make that argument the Treasury and ensuring that serv- But if their goal is not the dawning may even believe it. of a new order, what is their purpose in ices that use the spectrum continue in But, Mr. President, for those who do supporting this measure? a manner that benefits the public— believe that argument, there is still no Mr. President, their goal is not a bal- should be a goal of all FCC proceedings defense for the fiscally irresponsible anced budget. regarding the spectrum. tax cuts that are included in the rec- The bill before the Senate contains Their goal is a fiscally irresponsible onciliation agreement. several criteria that the FCC should Indeed, if one believes that these tax cut. use in selecting which blocks of spec- massive cuts are necessary in order to How else can this bill be explained? How else can one explain a $245 bil- trum to auction. I want to emphasize achieve a balanced budget, then there lion tax cut in a bill that provides for for the RECORD that the inclusion of is no justification for supporting the annual deficits that add $700 billion to any particular criteria for the FCC to $245 billion tax cut that risks achieving our Federal debt? consider should not be viewed as limit- that balance. ing the Commission’s authority to Mr. President, I have argued on a If balancing the budget were their make a determination under its overall number of occasions that the budget highest priority, there would not be a public interest standard of what exist- plan outlined in the reconciliation $245 billion tax cut in the reconcili- ing spectrum uses may need to be con- measure is unsustainable. ation package. tinued, or from considering in making In part, this comes from the refusal Mr. President, supporters of the rec- its decision the impact on any existing to deal honestly with the American onciliation measure had the oppor- users of having to move to other fre- people, arguing, for example, that the tunity to demonstrate that balancing quencies or from requiring, as a condi- $270 billion in cuts to Medicare are nec- the Federal books was a higher priority tion of any move, that the costs of re- essary to keep the Medicare trust fund than providing a $245 billion tax cut. location be paid by new users. solvent. The senior Senator from West Vir- Most importantly, I urge the Com- Of course, that is nonsense. ginia [Mr. BYRD] and I offered an mission to examine all the spectrum But the architects of this tax cut felt amendment to the reconciliation bill referenced in this act and make deter- it necessary to spin this story in order during our limited debate that did minations as to its allocation that are to produce the cuts needed to fund the nothing but strike the tax cut, lower- fair, equitable, and that do not unduly tax cut. ing the bill’s cumulative deficits by hurt or burden any one group or indus- Regrettably, the failure to be $245 billion. try. straight with the American people does Mr. President, the change to the bill Mr. President, I hope this clarifica- more than undercut this extreme pro- by that amendment alone would have tion helps guide the FCC as it moves posal. balanced the Federal books in 2001, a toward auctions as mandated by this This deception will make it much year before the underlying measure. bill. more difficult for those of us who are Only two of the Members who sup- TAX CUTS IN RECONCILIATION CONFERENCE willing to support some reasonable re- ported the reconciliation package also REPORT forms to make our case to the Nation supported that amendment. Mr. FEINGOLD. Mr. President, I rise that we need to make changes to Medi- Balanced budget, Mr. President? to express my opposition to the con- care not only to keep the program sol- If supporters of the reconciliation ference agreement on the reconcili- vent, but also as a matter of deficit re- measure really wanted to balance the ation package, and to take particular duction. budget, they would have supported exception to the tax cuts in that pack- Mr. President, beyond the issue of de- that amendment. age. ceiving the public, this budget plan is Their failure to do so is clear evi- Mr. President, there is a great deal to also unsustainable because its prior- dence that the $245 billion tax cut, not dislike in the agreement, especially ities are unbalanced. a balanced budget, is their highest pri- with respect to Medicare and Medicaid. A budget plan that increases Defense ority. The majority of the debate surround- spending, allows special interest loop- If the $245 billion tax cut were not ing the reconciliation has concerned holes to continue to grow unchecked, the priority of the reconciliation bill, these two programs, and the cuts to cuts taxes by $245 billion, and does all we would not see the $450 billion cuts those programs certainly merit the at- of that while gutting our health care to Medicare and Medicaid. tention they have received. protections is a budget plan that does If the $245 billion tax cut were not Much has been said already about the not reflect anything close to the main- the priority of the reconciliation bill, Medicare and Medicaid cuts: cuts that stream view of the Nation. we would not have seen the tortured, November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17295 and even dangerous precedents set on I urge the President to veto this States to timely collect all claims this floor during the reconciliation de- measure, so we can begin putting to- within 6 years rather than allow the bate through rulings from the Chair on gether a budget plan that will balance claims to become stale and what can only be called highly ques- our Federal books by 2002 or sooner. uncollectible; second, requiring early tionable parliamentary interpretations A budget plan that will have enough resolution and collection of disputed of budget points of order with respect public support to ensure that it will be claims before their value diminishes; to Social Security. sustained for the full duration. third, requiring Federal and State re- Senate rules prevent a fuller discus- A budget plan that includes cuts to sources to be used in a manner that sion of those events. Medicare and Medicaid, but a plan that maximizes receipts through more ag- It is enough to say that the question cuts smart, not one that cuts mean. gressive collection activities; and need never have come up. A budget plan that distributes the fourth, increasing production on Fed- We need never have risked damage to burden of reducing the deficit fairly. eral lands by creating economic and the integrity of our rules had there One that includes the defense budget regulatory incentives. Without the been a willingness to pare back this un- as well as our health care budget. statutory framework of this legisla- justifiable tax cut to 95 percent of its One that includes one of the most tion, the Nation’s third largest revenue proposed level. rapidly growing areas of our Federal source—the Interior Department’s Min- The $12 billion raid on the Social Se- budget—tax expenditures. erals Management Service is the third curity trust fund, and the carefully A budget plan that does not include largest source of revenue behind the scripted parliamentary exchange used the fiscally reckless $245 billion tax cut IRS and Customs Service—will con- to subvert our budget rules, was made that jeopardizes our most important tinue to be subject to greatly delayed necessary because of an unwillingness economic goal, a balanced Federal collections and the risk of reduced re- to lower the tax cut by so little as 5 budget. ceipts due to noncollection over time. percent. Mr. President, I yield the floor. To achieve the goal of maximizing Mr. President, I understand that the CHAPTER 4—FEDERAL OIL AND GAS ROYALTIES collections through more timely and conference committee found a different Mr. MURKOWSKI. Mr. President, the aggressive collection efforts, this legis- source of funding, making the raid on Federal oil and gas royalty chapter in lation would do the following specific the Social Security Trust Fund unnec- the Balanced Budget Act is the only things. It would require the Secretary, essary. legislative initiative taken in the last delegated States, and lessees to take But the damage is done. 13 years to cost-effectively increase the action respecting an obligation within In an effort to protect the tax cut at Nation’s third largest source of reve- 6 years from the date that obligation all costs, a critical budget rule has nue—mineral royalties from Federal became due. The provisions require been weakened. lands, more specifically, oil and gas that judicial proceedings or demands— Though the $12 billion may have been royalties. This legislation would estab- for example, orders to pay—be com- restored to the trust fund, the integ- lish a comprehensive statutory plan to menced or issued within 6 years of the rity of the Senate’s budget rules has increase the collection of royalty re- date when the obligation became due been compromised. ceipts due the United States. These or be barred. Use of legal authority This is not the first assault on our mineral receipts will help reduce our other than that provided in this sec- budget rules in the name of cutting budget deficit. Without this legisla- tion—for example, the Debt Collection taxes. tion, an ineffective and costly royalty Act—is not precluded so long as judi- I am reminded in particular of the so- collection system will continue, per- cial proceedings or demands are com- called dynamic scoring debate, a back- petuating long delays and uncollected menced or issued within the 6-year pe- door attempt to circumvent our budget royalties. riod. It is not intended that such other procedures—again, done in the name of Let me make absolutely clear, Mr. legal authority be used as a substitute cutting taxes. President, that this legislation does Mr. President, in the name of cutting for, or to circumvent, emasculate or not apply to Indian lands. It applies taxes, the extremists will deceive the otherwise frustrate, the 6-year limita- only to royalties from oil and gas pro- public, compromise our budget rules, tion period. Lessees would be required duction on Federal lands. to maintain their records during the 6- slash health care protections for the This is historic legislation, Mr. Presi- most vulnerable in society, and forsake year period in order to verify produc- dent, in that it would empower States tion volumes. efforts to balance the Federal budget. to perform oil and gas royalty manage- Mr. President, this budget is ex- The legislation would expedite the ment functions, such as auditing and treme. administrative appeals process at the collecting, that are essential to bring- And the driving force behind its ex- Interior Department by establishing a ing additional receipts to the Treasury cess is the $245 billion tax cut—a tax 30-month limitation on appeals. Pres- and the States within a 6-year limita- cut that apparently is timed to be ently, over $450 million in disputed tion period established by this legisla- mailed out only days before the 1996 claims languish in a bureaucratic ap- tion. By expanding the States’ role in elections. peals process and continue to lose Those who want to understand this performing Federal oil and gas royalty value. By speeding up the appeals proc- reconciliation package need look no management functions consistent with ess, the Secretary would increase the further than the tax cuts. Federal law and regulation, States are value of these obligations and collec- All other provisions flow from the as- provided a great economic incentive tions to the Treasury. sumed tax cuts. that also benefits the Federal Treas- The legislation also would level the All the actions surrounding the ury. The more aggressive States are in playing field for royalty payors by au- measure flow from the assumed tax performing delegated functions, the thorizing the payment of interest on cuts. greater their share of net receipts overpayments. Present law requires As I have noted, some who support under the Mineral Leasing Act. That lessees to pay interest on late pay- this budget may actually endorse the act requires 50 percent of all royalties ments and underpayments as a dis- measure’s extremism. from Federal onshore oil and gas pro- incentive for being tardy or Others support it in spite of its extre- duction to be shared with producing underpaying royalties, but does not mism. States. compensate lessees who overpay royal- But make no mistake. Chapter 4 establishes a framework ties and who lose the time value of Those who endorse the extreme pro- for the Federal oil and gas royalty col- that money through some legitimate visions in reconciliation and those who lection program that will bring in an error. This legislation would provide back the measure in spite of them, sup- additional $51 million in revenues to for payment of interest on overpay- port the bill primarily as a vehicle to the U.S. Treasury and provide an addi- ments without regard to the amount of cut $245 billion in taxes. tional $33 million to the States over 7 the overpayment. The fiscally irresponsible tax cut is years. These additional receipts result And finally, Mr. President, the legis- the essence of this measure and it in- primarily from: First, Requiring the lation would authorize the Secretary fects the entire package. Secretary of the Interior and delegated to allow prepayment of royalties and S 17296 CONGRESSIONAL RECORD — SENATE November 17, 1995 to provide other regulatory relief for administer the Sugar Program. Section statute that requires States to serve as marginal properties, and require that 1107(d)(2) conditions the use of recourse a pass through for IHS Medicaid funds. adjustments or requests for refunds for loans on the requirement that the Sec- This would release States of what I be- underpayments or overpayments be retary provide nonrecourse loans in the lieve to be an improper involvement in pursued within a 5-year window coin- event that the tariff rate quota for im- the special relationship that exists be- ciding with the 6-year limitation pe- ports of sugar into the United States is tween the Federal Government, the In- riod. established at, or increased to, a level dian Health Service and Native Amer- Mr. President, CBO estimates that in excess of 1.5 million short tons of ican citizens. This repeal would require chapter 4 provisions will procure sav- sugar in any year. It is the clear intent the establishment of a direct billing ings of $6 million in fiscal year 1996, $40 of the conferees that if the subsection mechanism to satisfy existing require- million in 5 years, $51 million in 7 (d) conditional authorization for the ments of 100 percent Federal reim- years, and $66 million in 10 years. We use of recourse loans to administer the bursement; or third, to satisfy those believe this legislation will do more Sugar Program, or the restrictive con- States desirous of maintaining current than simply bring receipts to the Gov- ditions on the use of such authority in law, a structure that would allow ernment earlier than they would arrive paragraphs (2) and (3) of subsection (d), States the option to either continue under the present system, Mr. Presi- is removed from the bill, the Secretary serving as a pass through, or to insist dent. We believe a more efficient, effec- of Agriculture shall continue to admin- on a direct Federal-tribal relationship. tive, and aggressive program, combined ister the Sugar Program through the Mr. President, at issue is the in- with some of the economic incentives use of nonrecourse loans authorized creased flexibility we promised our Na- and regulatory relief, will bring new under subsections (a) and (b). tion’s Governors in return for their ac- savings to the Treasury and the States. MEDICAID PAYMENTS TO INDIAN HEALTH ceptance of a revised Medicaid funding Because of these savings, the provi- SERVICE FACILITIES formula. Obviously, maintenance of the sions in chapter 4 are an important Mr. PRESSLER. Mr. President, I current system would severely hamper part of the Balanced Budget Act of would like to discuss several important the flexibility of States with signifi- 1995. Medicaid provisions in the Balanced cant Native American populations. SECTION 1107 Budget Act that will have an impact on Two factors are involved: A capped Mr. CRAIG. Mr. President, I rise to my home State of South Dakota. Medicaid grant, and a 100-percent Fed- engage in a colloquy with Senator The Medicaid reform proposal, as eral reimbursement requirement for LUGAR, the distinguished chairman of contained within the Balanced Budget Medicaid eligible Native Americans. the Committee on Agriculture, Nutri- Reconciliation Act, would maintain Without additional Federal funds under tion and Forestry, regarding section current law that requires the States to the current system, or a direct Fed- 1107 of the bill. pass through to Indian Health Service eral-tribal billing system, the result Mr. LUGAR. I would be pleased to en- facilities funding from the State’s fed- will be added pressure on States to use gage the Senator from Idaho in a col- eral Migrant allotment. For a State its own funds to maintain services for loquy. such as South Dakota—with 37 percent Medicaid eligible non-Indians. The ma- Mr. CRAIG. Is it your understanding of its Medicaid beneficiaries being Na- jority leader has indicated his interest that section 1107 of the bill reforms the tive Americans—this creates a highly and support for finding an appropriate Federal Sugar Program by imposing a problematic situation. Let me explain. solution. Unfortunately, this issue was forfeiture penalty which effectively re- Presently, the IHS budget is funded at left unresolved prior to the completion duces the loan level for sugar by 1 cent an amount less than actual need. To of conference. On behalf of the numer- per pound, eliminating domestic sugar deal with this shortfall, Federal funds ous Senators and Governors who have allotments that control supply, condi- have been made available through contacted the majority leader on this tionally authorizing the use of recourse State Medicaid programs. As my col- issue, it is my hope we will find a fair sugar program loans, and increasing leagues know, the proposed Medicaid solution once the President vetoes this the contributions of sugar producers reform provisions would cap Federal legislation. toward deficit reduction by increasing Medicaid funds to the States. As a re- Mr. President, I see the senior Sen- the assessments on sugar marketings sult, States with IHS and significant ator from Alaska on the floor. I know by 25 percent? Native American populations facilities my colleague shares my concerns re- Mr. LUGAR. The gentleman is cor- would be forced to use limited Federal garding the current Medicaid reform rect, the reforms in section 1107 will re- funds to supplement the intentional proposals and would yield to him to sult in more competitive sugar prices, shortfalls in the IHS budget, which make any comments on this subject. enhanced Government revenues, and could limit Medicaid service availabil- Mr. STEVENS. I thank my friend the potential for increased sugar im- ity to Medicaid eligible Native and from South Dakota. Mr. President, I ports. non-Native Americans. To compensate, share Senator PRESSLER’s concerns re- Mr. CRAIG. Mr. Chairman, as a con- States may need to limit payments to garding funding for Medicaid services feree for the Senate on section 1107 of IHS facilities to conserve Federal dol- provided to Indians and to Native Alas- the bill, it is my understanding that lars, or utilize limited State resources kans. In Alaska, approximately 35 to 40 the conferees have agreed to include to make up shortfalls for non-Indian percent of Medicaid recipients are Na- language in subsection (d) of section people. In short, the Medicaid reform tive Alaskans. 1107 that will reform the Sugar Pro- proposal would unfairly single out In the past, the Federal Government gram by authorizing, for the first time, those States—37 in all—with a signifi- has paid 100 percent of the costs of the Secretary of Agriculture to admin- cant Indian population. Medicaid services delivered to Alaska ister the program through the use of The majority leader has requested Natives in Indian Health Service facili- recourse loans, subject to specific con- from me and the Governor of my State ties. The State of Alaska acted only as ditions. If implemented, the use of re- suggestions as to how we may rectify a conduit for these funds. I understand course loans is a major reform from the this situation. I believe three possible that the proposed MediGrant Program nonrecourse loans that have been used solutions exist: First, the creation of a would continue to require that health to support the prices of all basic farm separate tribal allocation equal to 1⁄2 of services provided to eligible Alaska Na- program commodities in this century. 1 percent of the budget for the new tives in IHS facilities as well as trib- The conferees authorized the use of re- Medicaid Program that would assure ally owned or operated facilities be course loans for the Sugar Program reimbursement for services to Native paid 100 percent by the Federal Govern- only subject to specific conditions out- Americans through their Indian health ment. In light of funding shortfalls for lined in section 1107(d) of the bill. Is programs. This allocation could be pro- the Indian Health Service, IHS facili- this your understanding as well? vided either through a direct billing ties in Alaska depend on these third- Mr. LUGAR. The gentleman is cor- mechanism between the tribes and the party payments from the Medicaid Pro- rect. Section 1107 conditionally author- Federal Government, or through the gram to meet their expenses. izes the Secretary to depart from cur- current pass-through structure. Sec- However, under a capped MediGrant rent practice and use recourse loans to ond, a repeal of the current Federal Program, Alaska may be faced with a November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17297 Hobson’s Choice of either cutting back are an antiquated, overly regulatory they prefer a completely unregulated on payments to Native facilities or system of setting milk prices through- market to an overregulated one. being forced to cut back on payments out the country and determining Despite the efforts of those of us for services to poor non-Native Alas- where, when, and how milk should be from the Upper Midwest to reform Fed- kans. This could easily lead to racial shipped. The system sets minimum eral orders and despite the months of tensions in Alaska which we all work milk prices artificially high in many effort by Congressman GUNDERSON, a very hard to avoid. parts of the country at a significant Republican and chairman of the House I would like to add my voice to that cost to both taxpayers and consumers, Subcommittee on Dairy Policy, to ter- of my colleague from South Dakota in and to the extreme disadvantage of minate the program when reform ef- urging your continued cooperation in dairy farmers in Wisconsin and forts failed, the Republican majority finding an equitable solution to this throughout the Upper Midwest, where took a walk on dairy policy. Congress- problem. fluid milk prices are the lowest by law. man GUNDERSON worked hard to set Mr. PRESSLER. Mr. President, I see The system has distorted the market dairy policy right. Unfortunately, in the distinguished majority leader on resulting in perverse economic incen- the end when it counted, Speaker GING- the floor and I would like to yield to tives for overproduction in a sector for RICH decided that political expediency him to make a brief statement regard- which the slightest oversupply can was more important than supporting ing Medicaid payments made to Native send farm-level prices plummeting. his chairman’s package. The Repub- American health programs serving This budget bill presented an ideal licans have abrogated their responsibil- Medicaid eligible native Americans. and unique opportunity to both reform ities on a tough issue. House Speaker NEWT GINGRICH indi- Mr. DOLE. Mr. President, I recognize Federal milk marketing orders, reduce cated that reform of Federal Orders the importance of this issue to South regulation and save millions in tax- would be high on the Republican agen- Dakota, Alaska, and other States with payer dollars. Eliminating Federal or- da following Thanksgiving. However, significant native American popu- ders while leaving a basic support sys- given that Speaker GINGRICH was will- lations. I have had a number of recent tem in place would have saved $669 mil- ing to forgo $800 million in budget sav- conversations with my colleagues from lion over 5 years, which is only about South Dakota and Alaska. I also heard ings in order to avoid a fight in his own $100 million shy of the conference com- party on dairy policy, I am highly from the Governor of South Dakota. mittee target for dairy. Instead of tak- They have made me aware of the im- skeptical that his commitment to re- ing the route of terminating this sys- form is terribly strong. pact this issue may have upon their tem and letting the market work, the States. The Senators from South Da- Mr. President, I have always said Republicans dropped the $800 million in there are three avenues to restoring kota and Alaska have my assurance savings the conference committee was that I will continue working with them fairness to Wisconsin farmers: judi- to achieve from dairy. cially—by bringing legal actions to find a solution to this complex issue. But, Mr. President, nothing was Mr. PRESSLER. Mr. President, I against the Department of Agriculture; done, no changes were made. We are thank the majority leader and my legislatively—which now seems unreal- left with the status quo—the status friend from Alaska. I appreciate the istic; and administratively—through quo that the leaders of the so-called majority leader’s consideration of our the Secretary of Agriculture’s vast revolution had made a commitment to request and look forward to working rulemaking authority. end. ‘‘We are going to end business as Several months ago, Secretary of Ag- with him on this matter of great im- usual’’—that is what the Republicans riculture Dan Glickman accepted my portance to South Dakota, Alaska, and told the American people. invitation to participate in a barn all other States with significant native meeting with dairy farmers in Green- American populations. Well, it is business as usual, Mr. President. leaf, WI. Having spent an hour and a DAIRY PROVISIONS IN RECONCILIATION REVEAL half listening to dairy farmers, Sec- HYPOCRISY That was pretty clear when the Sen- retary Glickman conceded that indeed Mr. FEINGOLD. Mr. President, dur- ate took up dairy late last month. The Federal orders discriminate against ing this budget debate, it became quite Senate version of reconciliation not the Upper Midwest to the benefit of clear that Republican’s rhetoric about only did nothing to eliminate the in- dairy farmers in other parts of the less Government, less regulation, less equities and regulatory burdens of Fed- country and that fluid milk prices set spending, and the end of business as eral milk marketing orders, but actu- too high in some regions encouraged usual, cannot stem their rush to pass ally provided for more Government regulation, more market distortion and overproduction. this particular budget package, regard- While I have long been skeptical of less of the contents of the package. The more regional inequities. During floor action, Senators approved legislation the ability of the Department of Agri- hypocrisy of that rhetoric was revealed culture to do the right thing with re- during these debates, when Repub- imposing a hidden tax on dairy farmers throughout the Nation for the benefit spect to orders, I think the dairy farm- licans began abandoning not only their ers of Wisconsin have in Dan Glickman of a few west coast States—known as own rhetoric, but also members of a Secretary who has at least been will- class IV pooling. The Senate also ap- their own party in an effort to pass a ing to admit our farmers have been jus- proved the northeast dairy compact budget. tified in their cries of ‘‘foul.’’ Previous which was astonishing in this political Mr. President, I am talking about the Secretaries have failed in their duties climate. Some of the very Members of sequence of events that have occurred in that respect. both in this Chamber and the House of this body who have been decrying the So, today I am calling on Dan Glick- Representatives on dairy policy. Ac- consumer costs and excessive Govern- man to do what Congress apparently tions of the Republican leadership are ment intervention imposed by the cannot—make the changes to this anti- more significant for what they didn’t sugar and peanut programs, not only quated program that the farmers of do than for what they did do on dairy voted to impose a milk tax on New Wisconsin so deserve. I hope, and feel policy. What does this budget rec- England consumers but also to allow confident, that Dan Glickman has the onciliation bill before us do on dairy six States to set minimum milk prices courage that the Republican leadership policy? Nothing, Mr. President, abso- well above that allowed under current lacks on this matter. lutely nothing. No savings, no reform, law. I would put my colleagues on notice, and clearly no courage to make the The House, after seeking some re- however, that I am not willing to give tough calls. form compromise on Federal orders, ul- up the fight in this Chamber. This bat- This is inexcusable during a year in timately voted to eliminate them. tle for fairness is not over. And, Mr. which this budget bill represents the That was certainly the wiser of the two President, if Members are not willing vehicle for major reform of all agricul- courses, and an approach, which I ulti- to compromise to achieve reform, I will tural programs. Dairy policy, and spe- mately endorsed following the Senate’s seek the termination of Federal milk cifically, the Federal milk marketing ill-conceived actions. The Upper Mid- marketing orders. order system is badly in need of re- west is harmed so badly by Federal or- Mr. SMITH. Mr. President, it is now form. Federal milk marketing orders ders, that in the absence of reform, or never time in the economic history S 17298 CONGRESSIONAL RECORD — SENATE November 17, 1995 of our country. At the end of this year, save the homeowner $38,653 over the There being no objection, the column our national debt will exceed $5 tril- life of the mortgage. was ordered to be printed in the lion. We are adding to the debt at the Mr. President, the Senate bill also RECORD, as follows: astonishing rate of $9,600 per second. As provides significant tax relief to Amer- ‘‘MIDNIGHT IN AMERICA’’ I speak, every man, woman, and child ican families. I know that many of my (By Jamie Stiehm) in America is more than $18,000 in debt. colleagues have expressed disdain at [From the New America News Service/New There is little doubt that a crisis is at the idea of cutting taxes. Apparently, York Times Special Features] hand. The only question remaining is: they find it offensive to let American Now that the O.J. Simpson trial and the Will the Congress and the President of taxpayers keep more of their hard- World Series are over, maybe America can the United States step up to the plate earned money. I would ask, is it offen- pay attention to another show—and what a and solve the problem? sive to provide a $500 per child tax show it is on the floors of the House and the The Balanced Budget Act of 1995 be- credit? Is it offensive to create a tax Senate. fore the Senate today is the congres- credit for adoption expenses? Is it of- Not all revolutions have to happen in the sional answer to our crushing debt fensive to provide a tax credit for in- streets. Nor do all revolutionaries look like problem. It may not be the final an- terest paid on a student loan? Lenin. The one we’re having right now is something we can see on C–SPAN and arose swer, it may not be the perfect answer, I certainly do not think so? The critics of tax cuts think Mem- largely as a result of apathy, not action, on but it is the only answer put forth thus the part of the American electorate, most of far. President Clinton has never sub- bers of Congress can spend money bet- whom forgot to vote last fall. mitted a balanced budget to Congress, ter than a family of four in Berlin, NH, So what we have here is a character named and has made it clear that he never or Cleveland, OH, or Atlanta, GA. I Newt changing the course of a perfectly nice will. In fact, as the ongoing Govern- would respectfully disagree. The only country, while most of its citizens weren’t ment shutdown shows, the President way to limit the size and scope of the even watching. would rather close the Federal Govern- Federal Government is to limit its Make no mistake, this is no budget busi- source of energy. The Federal Govern- ness as usual. The manner, means and con- ment than agree to balance the budget. tents of the enormous budget bill passed by Clearly, President Clinton does not ment is fueled by taxes. Simply put, Congress—just as the clock struck midnight have his priorities straight. the more Uncle Sam collects in taxes, on the Senate side—are like nothing its Over the past several weeks, we have the more Uncle Sam will spend. In 1993, members have seen, done or dreamt before. heard vicious attacks on the balanced President Clinton raised taxes on the First, the idea of allowing 30 seconds of de- budget bill that is before the Senate American people by $250 billion. He bate on both sides of some amendments today. The Republican balanced budget wanted to expand the Government. In might seem strange in the greatest delibera- has been called ‘‘immoral’’ and ‘‘irre- 1995, the Republican Congress proposes tive body in the world. But the Senate need- sponsible.’’ The American people have to reduce taxes by $245 billion. We want ed no more time than that to pass amend- ments like the one allowing 19 million acres been warned of ‘‘devastating’’ cuts in to shrink the Government. of Alaskan wilderness to be opened to oil spending. To the casual observer, it Mr. President, I have held a good drilling. Don’t ask what that has to do with might appear that the sky is about to many town meetings in New Hamp- a balanced budget, because I don’t know. fall. The truth, however, is quite dif- shire to talk about the budget, taxes, What I do know is that the Senate rejected ferent. In fact, the budget before the welfare reform, and Medicare. Often, the same idea of drilling in the Arctic pre- Senate today is the only chance to save when I say that Congress intends to serve after a long floor fight a few years our country from an immoral, irre- balance the budget in 7 years, my con- ago—just one way the times have changed. sponsible, and devastating future. stituents ask why we are waiting that Another is the sheer refusal to deal across long! It is a difficult question to an- the aisle. Traditionally, politics is about the Mr. President, if there was an easy art of the possible, the search for a com- solution to our fiscal problems, you swer. There is no danger in going too promise that makes the greatest number of can rest assured that Congress would far, too fast, as many would have us be- people happy. But not this time. The only have found it long ago. I do not agree lieve. The real risk to all Americans is bargaining and concessions made were be- with every provision in the bill before the risk that we will not get the job tween Republicans themselves, with mod- the Senate. If I could pick and choose, done. erate Republicans able to make a small dif- there are many priorities that I would I have waited 10 years for the oppor- ference to the final outcome. For example, change. On the balance, however, I tunity to vote for a balanced budget. they persuaded Majority Leader Bob Dole (R- Kan.) not to knock out all federal nursing think the product is a good one because The time for waiting is over and the time for acting is now. This budget is home standards. Again, don’t ask me what it gets the job done. There are no that particular issue has to do with a bal- smoke and mirrors, just a solid bal- bold; it is real, and it stands alone as anced budget. anced budget using solid economic as- the only solution to our Nation’s fiscal As far as Republicans were concerned, sumptions. I would like to commend problems. I urge my colleagues to sup- though, Democrats were just making so Senator DOMENICI for his leadership port the Balanced Budget Act of 1995, much noise about tax cuts and Medicare and hard work on this bill. and I urge the President to sign the bill cuts. The two figures are suspiciously simi- The bill before the Senate will bal- into law. lar, with Republicans proposing to cut taxes by $245 billion and Medicare by $270 billion ance the Federal budget in 7 years. ‘‘MIDNIGHT IN AMERICA’’ AND BUDGET over the next seven years. That’s what PRIORITIES That fact has been certified by the Democratic senators such as Edward Ken- Congressional Budget Office. The budg- Mr. KENNEDY. Mr. President, I rise nedy (D–Mass.) were roaring about all week, et will save Medicare from bankruptcy, today to call the attention of my col- the unseemliness of changing the tax code at and strengthen and protect the pro- leagues to an excellent recent opinion the expense of health care for senior citizens. gram for future generations. The legis- column by Jamie Stiehm distributed Not to mention the fact tax cut helps the lation completely overhauls our broken by New America News Service/New rich and hurts the poor. Those earning under welfare system. It transfers power York Times Special Features. The col- $30,000 will actually pay higher taxes under away from Washington bureaucrats umn, entitled ‘‘Midnight in America,’’ the new budget plan brought to us. describes the Senate passage of the Makes a whole heap of sense, doesn’t it? and returns it to State and local offi- Especially when the latest poll reveals that cials. Budget Reconciliation bill last month, most voters, including registered Repub- The benefits of a balanced budget far and is especially timely now as the licans, don’t even want that tax cut. outweigh any temporary pain. The Senate continues to debate the Repub- Finally, please don’t ask me why the Pen- Congressional Budget Office estimates lican budget plan. As the column tagon didn’t lose a penny under this budget— that a balanced budget will result in a makes clear, the true debate is about in fact, it got a few billion dollars more than reduction of long term interest rates of fundamental American priorities and it asked for, though there are no wars, cold approximately 2 percent. On a typical the kind of country America will be in or hot, in sight. student loan, that reduction would the years ahead. I believe Ms. Stiehm’s Yet plainly embedded between the lines and numbers of this latest Capitol Hill budg- save American students $8,885. On a column will be of interest to all of us et are values that go counterclockwise to typical car loan, it would save the in Congress, and I ask unanimous con- American history. Throughout most of this consumer $676. On a 30 year, $80,000 sent that it may be printed in the century, since the Progressive Era and the mortgage, lower interest rates would RECORD. New Deal, the direction of social legislation November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17299 has been to make the federal government a the sake of their parents. Mr. Presi- American people will think we’re friend, not an enemy, for most American dent, if we continue on the current shooting straight with them.’’ That is citizens and families. Social Security and path, we will violate this trust between precisely the Republican point: All our the G.I. bill are the classic examples of this generations, and earn the contempt of talk of a balanced budget is meaning- trend, of course, but there are countless oth- ers, such as the 1964 Civil Rights Act. the future. less if we are simply twisting numbers, But now the new thing is ‘‘devolution,’’ a Every child born in America now in- not making cuts. This is the excep- word heard almost every day on the Hill. herits nearly $19,000 in public debt. tional achievement of the Balanced That translates to sending money, power and This is the destructive legacy of a Gov- Budget Act—it is based on facts, not on responsibility from the federal government ernment without courage. While dec- hope. to the states to take care of public assist- ades of deficit spending has caused a The President has already admitted ance for the aged, sick and poor. The ways budgetary crisis, it has done more than that a balanced budget is possible in 7 and means to this end is through another that—it has betrayed a moral respon- new buzz word, ‘‘block grants.’’ years. His exact quote? ‘‘There’s a way Since when have states suddenly become sibility because when Americans view for me to meet the stated objectives, beacons of wisdom and enlightenment in po- our actions, they see past the numbers which is a balanced budget in 7 years, litical dialogue? The last time states were to a set of principles. They see more with a family tax .. .’’ But now—faced regarded with such reverence by politicians than a matter of right and left, they with a bill that meets this goal—he in Congress was right before the Civil War. see a matter of right and wrong. says that 7 years is too soon. But believe me, I’d rather have the federal Make no mistake, this Balanced This is the same old political impera- government watching over social welfare and Budge Act makes good economic sense. tive at work—preserve the ability to equal justice than any one of the 50 states. But it also makes us consistent with That, if nothing else, is a painful lesson from buy votes by robbing the future, prom- our highest ideals. our history. ise benefits to every special interest in There was a good reason why the Founding That is the moral imperative of this economic debate—the reality beyond the country, the most special of all in- Fathers decided we are the United States, terest, the children, with no thought not simply the States. America stands for the bottom line. But there is, as al- something more than the sum of its parts. ways, a political imperative that for the next generation. That political ‘‘The people have bread, but they want cir- pushes in the opposite direction. imperative has won every budget de- cuses,’’ said a wise member of the Senate as Deficit spending has always made po- bate since the late 1960’s. But this Re- he walked onto the floor to vote. litical sense. It allows government to publican budget finally has the courage Change channels, America. Watch Newt please people in the present by placing to confront the political imperative— Gingrich try to lead the latest American rev- burdens on the future. The future, sig- the courage to say that our generation olution—or should I say devolution—and see has a moral duty to the next. if that’s the country you want to wake up to nificantly, has no vote in the next elec- the morning after midnight. tion. The Balanced Budget Act is a prac- Mr. COATS. Mr. President, there are Both the President and Congress tical, serious, responsible expression of a number of compelling economic rea- have built their power on the ability to that moral imperative. It allows us to sons to support a balanced budget: buy constituent support with cash care for the needs of our own society, Lower interest rates: Higher economic funded from debt. Republicans and without adding to the burdens of the growth. Others have drawn those impli- some Democrats in Congress prepared future. Even the Washington Post has cations in detail. to part with that destructive power. observed, ‘‘It’s gusty and in some re- But these economic facts do not fully The President, it seems obvious, is less spects inventive—and it addresses a explain the urgency of this issue in the willing to surrender it—even in this genuine problem that is only going to minds of many Americans. There is a budget crisis, even when the views of get worse.’’ moral aspect to this debate, and a most Americans are clear, even when Mr. President, this is a historic piece moral imperative we must understand. so much is at stake. of legislation—and not just for eco- Many of us are convinced that endless These two imperatives—the moral nomic reasons. It allows us in the Con- deficits are not only unwise, but un- imperative and the political impera- gress to leave some legacy to the fu- principled. They are not just a drag on tive—are struggling against each other ture other than monumental debt—a our economy, they are a burden on our at this moment. Never in my career legacy of moral courage and respon- national conscience. has the choice been more stark or more sibility. We have waited a long time to Thomas Jefferson defined this moral important. make a vote like this—a vote to keep On one side are false numbers and aspect, arguing that: our word and keep faith with the next false promises. The President says he The question of whether one generation generation. favors a balanced budget, but he is has the right to bend another by the deficit Mr. EXON. Mr. President, I ask unan- it imposes is a question of such consequence willing to shut down the Government imous consent to have printed in the rather than commit to hard deadlines as to place it among the fundamental prin- RECORD a list of Byrd rule violations ciples of Government. We should consider and hard numbers. His commitment contained in the reconciliation con- ourselves unauthorized to saddle posterity during the campaign was a balanced ference report. with our debts, and be morally bound to pay budget in 5 years. Now he refuses to ac- them ourselves. cept 7. And, in reality, because he will This list has been prepared by the We are debating one of the fundamen- not use reliable budget numbers, he re- Democratic staff of the Senate Budget tal principles of government, and one jects any balanced budget at all. Committee. of the basic moral commitments be- With this balanced budget act, we It is my opinion that each of these tween generations. It has always been have called the President’s bluff. At provisions violates section 313 of the one of the highest moral traditions for one point he said he could only accept Congressional Budget Act of 1974. parents to sacrifice for the sake of Congressional Budget Office numbers. There being no objection, the mate- their children. It is the depth of selfish- His exact quote? ‘‘Let’s at least argue rial was ordered to be printed in the ness to call on children to sacrifice for about the same set of numbers so the RECORD, as follows: EXTRANEOUS PROVISIONS, RECONCILIATION 1995

Subtitle and section Subject Budget Act violation Explanation

Title I—Agriculture Section 1109(a)(2) ...... Strikes sections listed as ‘‘omitted law’’ in the code. Purely house- 313(b)(1)(A) ...... No budget impact. keeping in nature. Section 1109(b)(2) ...... Strikes Agricultural Act of 1949 ...... 313(b)(1)(D) ...... Outlay changes are merely incidental. Title IV—Education and Related Provisions Subtitle A ...... Higher Education ...... 313(b)(1)(A) ...... Only recovery of reserves scores. Sec. 4004 ...... Amendments Affecting Guaranty Agencies ...... The cost estimate includes a line showing this provision as having (e) ...... Reserve Fund Reforms ...... no budgetary effect. (1) ...... Strengthening and Stabilizing Guaranty Agencies. S 17300 CONGRESSIONAL RECORD — SENATE November 17, 1995 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and section Subject Budget Act violation Explanation

Subtitle A ...... Higher Education ...... 313(b)(1)(A) ...... Only recovery of reserves scores. The cost estimate includes a line Sec. 4004 ...... Amendments Affecting Guaranty Agencies ...... showing this provision as having no budgetary effect. (g) ...... Reserve Ratios ...... Subtitle B ...... Provisions Relating to ERISA ’74 ...... 313(b)(1)(D) ...... The waiver would slightly speed distribution. Sec. 4101 ...... Waiver of Minimum Period for Joint and Survivor Annuity Expla- The JCT estimates ‘‘negligible effect revenue effects,’’ therefore the nation Before Annuity Starting Date. budgetary effect of this provision is merely incidental. Title V—Subtitle C: Natural Resources Subchapter A—California Directed Land Sale: 5301 ...... Conveyance of Property ...... 313(b)(1)(D) ...... Merely incidental, budget savings incidental to broader policy of transferring Federal land (Ward Valley) to the State of California for the purpose of developing a low-level radioactive waste site. Subchapter B—Helium Reserves: 5317 ...... Land Conveyance in Potter County, TX ...... 313(b)(1)(A)(D) ...... Non-budgetary and merely incidental, requires the Secretary of the Interior to transfer land to a girl scout group for $1. Chapter 2—ANWR: 5333(c) ...... Compatibility ...... 313(b)(1)(A) ...... Non-budgetary. 5333(h) ...... Conveyance ...... 313(b)(1)(A) ...... Non-budgetary, authorizes the Secretary to convey land to the Kaktovik Inupiat Corporation. 5338(19) ...... Employment and Contracting ...... 313(b)(1)(A) ...... Non-budgetary, requires best effort to assure that the lessee pro- vides a fair share of employment for Alaska Natives. 5341 ...... Expedited Judicial Review ...... 313(b)(1)(A) ...... Non-budgetary, limits time period for filing compliant seeking judi- cial review, and exempts actions of Secretary to judicial review in any civil or criminal proceeding for enforcement. 5342 ...... Rights-Of-Way Across the Coastal Plain ...... 313(b)(1)(A) ...... Non-budgetary, overrides existing law (ANILCA’s title X1) which de- lineates procedures for transportation rights of way within the Alaska refuges, including ANWR. Chapter 5—Mining: 5378 ...... Eligible Area ...... 313(b)(1)(A) ...... Non-budgetary, sets up eligibility criteria for reclamation activities funded by the States. Chapter 7, Subchapter A—Bonneville Power Administration Refi- nancing: 5409 ...... Contract Provisions ...... 313(b)(1)(A) ...... Non-budgetary, requires the BPA to offer its customers contractual commitments that will not assess any additional charges in the future, beyond the changes included in this section. Chapter 12—Concession Reform: 5464(b)(6) ...... Hiring Preference ...... 313(b)(1)(A) ...... Non-budgetary, intent of section is to require a hiring preference for residents of the State of Alaska with respect to concession operations in that state. 5467 ...... Rates and Charges to the Public ...... 313(b)(1)(A) ...... Non-budgetary, authorizes the concessioner to set rates charged for service to the public, unless there is no nearby competition. 5472(b)(5) ...... Preferential Right of Renewal for Existing Concessionaries ...... 313(b)(1)(A) ...... Non-budgetary, allows incumbent Concessionaries to receive a 5 percent bonus in the reissuance of a previous concession au- thorization which expires over the next 5 years. Title VI—Federal Retirement and Related Provisions 6023 ...... Availability of Surplus Property for Homeless Assistance ...... 313(b)(1)(D) ...... Extraneous; savings merely incidental to policy change. Repeals Title V of the McKinney Homeless Act. Title VII—Medicaid The following Sections refer to amendments to the Social Security Act as amended by Section 7001 of the bill: ‘‘2100’’ ...... Purpose ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘2105(a)(4)’’ ...... Advisory Committees ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. States are required to provide for consultation with one or more advisory committees established and maintained by the State. ‘‘2112(f)’’ ...... Exceptions to Minimum Set-Asides ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Provides for States to opt out of set-aside requirements. ‘‘2114’’ ...... Description of Process for Developing Capitation Payment Rates .... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Not required for other services provided under the plan. ‘‘2135(g)’’ ...... Estate Recoveries, Liens Permitted ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Reverses current law by allowing States to recovery resources from an individual or an individ- ual’s estate for any amount paid as medical assistance. ‘‘2137’’ ...... Quality Assurance Requirements for Nursing Facilities ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘2154(e)(1)’’ ‘‘Only the Secretary . . . under this subsection.’’ Judicial Review ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Prohibits cause of action against a State for failure to comply within the law or its plan. Only the Secretary may compel a State to comply with this Title. ‘‘2171(a)(8)’’ from ‘‘only if such drugs . . .’’ to end ...... Prescription drugs ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Provides only drugs not used or assisted suicide. ‘‘2171(a)(19)’’ from ‘‘only if necessary . . .’’ to end ...... Abortion ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Provides for abortion services only in the case involving rape, incest, and when the life of the mother is jeopardized. Sec. 13301 ...... Exemption of Physician Office Laboratories ...... 313(b)(1)(A) ...... No budget impact. Sec. 1853(f) of the Social Security Act as added by Section Application of Antitrust Rule of Reason to Provider-Sponsored Or- 313(b)(1)(A) ...... No budget impact. 8001 of the bill. ganizations. Sec. 1856(a)(6) of the Social Security Act as added by Section Establishment of Standards; relation to State Laws ...... 313(b)(1)(A) ...... No budget impact. 8001 of the bill. Sec. 1858(d) (1) and (2) of the Social Security Act as added Adoption of Standards for Data Elements ...... 313(b)(1)(A) ...... No budget impact. by Section 8001 of the bill. Sec. 1882(d)(3)(i), (iii), (iv), (v), (vi) of the Social Security Act Duplication and Coordination of Medicare-Related Plans ...... 313(b)(1)(A) ...... No budget impact. as added by Section 8002(a)(1) of the bill and Section 1882(d)(3) (B), (C), and (D) of the Social Security Act as added by Section 8002(a)(2) of the bill and Section 1882(u)(1) of the Social Security Act as added by Section 8002(b) of this bill. Sec. 8021 ...... Medicare Payment Review Commission ...... 313(b)(1)(A) ...... No budget impact. Sec. 8116 ...... Additional Exception to anti-Kickback Penalties for Discounting 313(b)(1)(D) ...... Merely incidental budget impact. Managed Care Arangements. Sec. 8132 ...... Clarificaton of Level of Intent Required for Imposition of Sanctions 313(b)(1)(D) ...... Merely incidental budget impact. Sec. 8151 ...... State Health Care Fraud Control Units ...... 313(b)(1)(A) ...... No budget impact. Sec. 8201 ...... Repeal of Physician Ownership Referral Prohibitions Based on 313(b)(1)(D) ...... Merely incidental budget impact. Compensation Arrangements. Sec. 8416 ...... Medical Review Process ...... 313(b)(1)(A) ...... No budget impact. Sec. 8417 ...... Report by Medicare Payment ...... 313(b)(1)(A) ...... No budget impact. Sec. 1839(e)(1)(C)(ii) of the Social Security Act as added in Lock Box Provision ...... 313(b)(1)(A) ...... No budget impact. Section 8511 of this bill. Sec. 1839(h)(6)(A) of the Social Security Act as added in Sec- Lock-Box Provision ...... 313(b)(1)(A) ...... No budget impact. tion 8512 of this bill. Sec. 1894(g) of the Social Security Act as added in Section Report by Medicare Payment Commission ...... 313(b)(1)(A) ...... No budget impact. 8601 of this bill. Title X—Veterans Affairs Subtitle B. Sec. 10021—Exemption for former POWs: (a)(3)(C) ...... Exempts former POWs from paying prescription copays ...... 313(b)(1)(A) ...... This provision will not generate changes in revenues or outlays. If anything, it would decrease revenue to the Government. Title XI—Ways and Means—Finance Retirement savings incentives: Section 11018(d) ...... SIMPLE savings plans. Part (d) exempts plans from ERISA stand- 313(b)(1)(a) ...... No budgetary impact. ards. Health care provisions: Section 11053 ...... Preemption of state insurance regulation ...... 313(b)(1)(d) ...... Merely incidental. Not a necessary term or condition. Expiring provisions: Section 11141 ...... Extension of ethanol blender refunds ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17301 EXTRANEOUS PROVISIONS, RECONCILIATION 1995—Continued

Subtitle and section Subject Budget Act violation Explanation

Section 11131(b) ...... Extension of hazardous superfund taxes. Part b directs the reve- 313(b)(1)(a) ...... No budgetary impact. nues to the general fund after August 1, 1996. Exempt and charitable organizations: Section 11217 ...... Exclusion from unrelated business taxable income certain sponsor- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. ship payments. Section 11278 ...... Treatment of certain dues paid to agricultural organizations ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Corporate and other reforms: Section 11380 ...... Clarification that newspaper distributors are independent contrac- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. tors. Pension simplification provisions: Section 11442 ...... Modification of additional participation requirements ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11464 ...... Treatment of leased employees ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11451 ...... Plans covering self employed individuals ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11453 ...... Distributions under rural cooperative plans ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11454 ...... Treatment of government plans under Section 415 ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11456 ...... Contributions on behalf of disabled employees ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11460 ...... Modifications to Section 403(b) ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11461 ...... Modify notice required of right to qualified joint and survivor an- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. nuity. Partnership simplification provisions: Section 11472 ...... Returns required on magnetic media for partnerships with 100 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. partners. Other tax simplification provisions: Section 11506 ...... Subchapter S—Allow interim closing of the books ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11552 ...... Regulated Investment Companies—allow traders to adopt mark-to- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. market accounting for securities. Section 11561 ...... Tax Exempt Bond Provision—Repeal of debt service-based limita- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. tion of investment in certain non-purpose investments. Section 11582 ...... Modifications to FICA tip credit ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11583 ...... Conform due date for first quarter estimated tax by private foun- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. dations. Estate, gift, and trust tax provisions: Section 11602 ...... Distributions during first 65 days of taxable year of estate ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11603 ...... Separate share rules available to estates ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11604 ...... Executor of estate and beneficiaries treated as related persons for 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. disallowance of losses. Section 11605 ...... Limitation on taxable year of estates ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11611 ...... Clarification of waiver of certain rights of recovery ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11613 ...... Clarification of qualified terminable interest rules ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11614 ...... Transitional rule under section 2056A ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11615 ...... Opportunity to correct certain failures under section 2032A ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11619 ...... Treatment under qualified domestic trusts rules of forms of owner- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. ship which are not trusts. Section 11631 ...... Taxable termination not to include direct skips ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Excise tax simplification provisions Distilled spirits, wines and beer: Section 11641 ...... Credit or refund for imported bottled distilled spirits returned to 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. distilled spirits plant. Section 11652 ...... Fermented material from any may be received at a distilled spirits 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. plant. Section 11643 ...... Refund of tax on wine returned to bond not limited to 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. unmerchantable wine. Section 11644 ...... Beer may be withdrawn free of tax for destruction ...... 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. Section 11645 ...... Transfer to brewery of beer imported in bulk without payment of 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. tax. Other excise tax provisions: Section 11661 ...... Other Excise Tax Provision—clarify present law for retail truck ex- 313(b)(1)(d) ...... Merely incidental. Joint Tax scores negligible revenue effect. cise tax. Title XII—Teaching Hospitals, GME, Asset Sales, Welfare and Other The following sections refer to amendments to the Social Security Act as added by Section 12101 of the bill: ‘‘402(c)(1)’’ ...... Condition of Grant ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Five-year limit on assistance. ‘‘403(c)’’ ...... Authority to Use Portion of Grant for Other Purposes ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘405’’ ...... Fed. Loans for State Welfare Programs ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘406(c)(3)’’ ...... Limit on Vocational Ed Activities Counted as Work ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘407(a)(5)’’ ...... No assistance for teenage parents who do not attend high school 313(b)(1)(A) ...... Extraneous; no budgetary impact. or equivalent program. ‘‘407(a)(6)’’ ...... No assistance for teenage parents no living in adult-supervised 313(b)(1)(A) ...... Extraneous; no budgetary impact. setting. ‘‘408(a)(7)(C)(i)-(ii)’’ ...... Scoring of State Performance ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘412(d)’’ ...... Annual Ranking of States and Review of Most and Least Success- 313(b)(1)(A) ...... Extraneous; no budgetary impact. ful Work Programs. ‘‘412(e)’’ ...... Annual Ranking of States and Review of Issues Relating to Out-of- 313(b)(1)(A) ...... Extraneous; no budgetary impact. wedlock births. 12102 ...... Report on Data Processing ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. The following sections amend Title IV of the Social Security Act in Section 12302 of the bill: ‘‘457(a)(4)’’ ...... Study and Report ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. ‘‘436’’ ...... Data Collection, Reporting ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 12802(a) ...... Authorization of Appropriations ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. Authorizes discretionary spend- ing. 12804(2): (D) ...... Consumer Education Information ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. (E) ...... Compliance with State Licensing Requirements ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. This section deletes all health and safety standards from current law 12907(e)(3) ...... Provision of Data to Family or Group Day Care Home Sponsoring 313(b)(1)(A) ...... Extraneous; no budgetary impact. Organizations. 12907(l) ...... Study of Impact of Amendments on Program Participation and 313(b)(1)(A) ...... Extraneous; no budgetary impact. Family Day Care Licensing. 12908 ...... Pilot Projects ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 12926(b) ...... NET Authorization of Appropriations ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13011 ...... Definition of Certification Period ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13012 ...... Definition of Coupon ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13017 ...... State Option for Eligibility ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13026 ...... Caretaker Exemption ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13027 ...... Employment and Training ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13040 ...... Condition Precedent for Approval of Retail Food Stores and Whole- 313(b)(1)(A) ...... Extraneous; no budgetary impact. sale Food Concerns. 13041 ...... Authority to Establish Authorization Periods ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13042 ...... Information for Verifying Eligibility for Authorization ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13043 ...... Waiting Period for Stores That Fail to Meet Authorization Criteria ... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13944 ...... Expedited Coupon Service ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13045 ...... Withdrawing Fair Hearing Requests ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. 13049 ...... Authority to Suspend Stores Violating Program Requirements Pend- 313(b)(1)(A) ...... Extraneous; no budgetary impact. ing Administrative and Judicial Review. 13052 ...... Authorization of Pilot Projects ...... 313(b)(1)(A) ...... Extraneous; no budgetary impact. S 17302 CONGRESSIONAL RECORD — SENATE November 17, 1995 Mr. SIMPSON. Mr. President, I did should change—in the future. Senator When viewed through the lens of his- not want to speak directly to previous KERREY and I have a bill to require 30- tory, the President’s behavior will be remarks made by my colleague from year budgeting, estimates of the 30- viewed for what it is. Nebraska, Senator BOB KERREY. I want year effects of legislative changes. In A waffle. to highlight them because of the very my view, we have to be able to plan A retreat. constructive things that he has said— further down the road when we are A repudiation of the promise of a bal- even, unfortunately, in opposition. dealing with retirement programs, anced budget. Unlike Senator KERREY, I am very ‘‘safety-net’’ rules that might affect What we are offering the President is willing and eager to vote for the bal- how people plan for their own time in the first serious effort in two and a half anced budget plan before us as it cur- retirement. In order to be fair, changes decades to put our fiscal house in rently stands. This plan represents the must be announced well in advance. order. result of months of work and negotia- The fact that we only deal with the And the President is slamming the tion. It is not necessarily the plan that short-term truly handicaps us as we at- door in our face. I would have designed working alone, tempt to make policy that is fair and It is that simple. but we do not have the luxury of work- reasoned. We are on a pathway to reduce the ing alone. This is the plan before us I do hope my colleagues will listen growth in Federal spending by a tril- that has the support of a majority of closely to Senator KERREY and to me lion dollars—to accomplish what the both Houses of Congress, it’s an honest as we discuss the need for ‘‘30-year American people asked us to do. plan, it will do the job, and it is right budgeting.’’ Because, the rules under We are doing it without smoke and now our only realistic hope of getting which we operate very much determine mirrors. the job done, and reducing the debt the results. I believe that this budget is We are doing it with the CBO budget burden that is being piled high on the perhaps the best attainable given the estimates that the President himself backs of our kids. existing budgetary rules. But I also be- asked that we use. I do want the Senate to mark what lieve that we must consider changing We are delivering on a promise made Senator KERREY has said, because as the rules to force us to look further to voters. The President promised a always, he diagnoses accurately much down the road—and to examine Social balanced budget in 5 years; but that’s of what ails us, in the fiscal sense. And Security solvency, and to stop fooling just one of so many campaign promises I am fully sympathetic with many of our countrymen and women. the President abandoned when he the choices he would make to bring our This budget before us is hardly walked in the White House. fiscal house back into order. That is ‘‘harsh’’ or ‘‘severe.’’ This is a sparrow But in keeping our promise, we are why I am pleased to work with him on belch in a typhoon. If we cannot get attacking the cancer of cynicism that drafting legislation that will help save this done, we will never do anything. undermines the confidence that Ameri- our country from insolvency in the Mr. MURKOWSKI. Mr. President, cans have in their leadership, and their long run. He and I see eye to eye on this is an historic day. For the first Government. this. time in 26 years, the American public We are so close to achieving our ob- I do fervently wish that it were pos- will witness the adoption of the first jectives. Sadly, the President would rather be sible to make all the reforms suggested real balanced budget. by Senator KERREY in the context of an instrument of the status quo than a And we are going to pass this legisla- this budget plan. But the existing rules positive force for change. tion despite the fact that the President do not work in our favor. For example, The President would rather flame the of the United States has done nothing, the Byrd rule forbids any changes in fears of older Americans with frighten- I repeat, nothing, to make this task bi- Social Security, even good and nec- ing tales of impending woe than lead us partisan. In fact, he has fanned the essary ones. I fully agree with Senator along the path to fiscal sanity for the flames of fear-mongering simply to KERREY that a five-tenths-of-1-percent sake of our children. gain what he sees as a political advan- correction in the CPI is necessary and In what I believe is a political mis- tage. appropriate. to my mind, it is a ‘‘no calculation, the President is deluded by Just look at his actions and the ac- brainer’’—a simple ‘‘technical correc- a short term poll that will mean noth- tions of his Secretary of Treasury in tion.’’ It makes no sense to perpetuate ing when we are held accountable to the past 10 days. He indicated that he an error which we all know exists. The the people for the end result of our ef- would not sign a continuing resolution Senator from Nebraska is so absolutely forts today. to reopen the Government because it right about that. Most Americans do not believe we But my attempts to include the CPI would have committed him to bal- will keep our promise and balance the correction were frustrated by the fact ancing the budget in 7 years. budget in 7 years. that it would affect Social Security, And Treasury Secretary Rubin last The President apparently wants to and thus violate the Byrd rule. I do not week spooked the global markets by prove them right and thus deepen the like it, I think we should change it, but scaring investors into believing that cynicism that embitters Americans to- that’s the way it is. We should, in my the United States was facing an immi- ward their government. view, change the rules to permit such nent default on our debt. There was no And that, Mr. President, endangers reforms in the future. But for now, we default; in fact there was no chance of far more than our fiscal stability. have to work within the rules as they a default, and Secretary Rubin knew Mr. President, ever since the Repub- are. that. licans unveiled their balanced budget Similarly, we ought to address the Yet he deceived the American people legislative plan during this Spring, the problem of population aging. We ought into believing default would happen if President has been out campaigning to make further shifts upward in eligi- the Republicans did not accept the against the plan, instilling fear into bility ages for Social Security and President’s demand that we not go for- our most fragile citizens—the elderly. Medicare, and for all programs which ward with our 7-year balanced budget Over and over and over again, there’s give benefits to the elderly. But under plan. His actions are reprehensible. one message the President has been our current rules, long-term reforms Emboldened by polls that show many drumming into the American people. that only produce savings outside the Americans blame Republicans for the And that message is that we are cut- 7-year ‘‘budget window’’ are considered Government shutdown, the President ting Medicare. extraneous. I do not like it, I think it’s would rather maximize political advan- Mr. President, nothing could be fur- wrong, but those are the limitations in tage than exercise fiscal leadership. ther from the truth. And I think it’s the current budget process. The President mimics leadership by time for the President to stop his dem- I mention these things not so simply standing up to the Republicans and re- agogic language about Medicare. express disappointment and to ‘‘howl fusing to seek a balanced budget in 7 Over the next 7 years Medicare into the wind’’ in the manner of King years. spending will increase from $178 billion Lear, but to point out to my colleagues That is not leadership. to $294 billion—a 65-percent increase, that this is something we can and In fact, it is quite the opposite. Mr. President. That is NOT a cut. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17303 Put another way, spending for each ture to working families. I believe we The Federal Government currently beneficiary will increase from $4,800 must keep the doors of opportunity expends far more money than it col- this year to $7,100 in 2002. open—not slam them shut. lects, so that a tax cut can be paid for Mr. President, let members end the Education is the key to a better life. only by borrowing additional money. scare tactics on Medicare. Let us face The federal student loan program has Paying for tax cuts with borrowed the fact that if we do nothing, if we opened the door of opportunity to mil- money is contradictory and self-defeat- maintain this endless borrowing spree, lions of Americans. Education must be ing. we will bankrupt our children and a national priority. It is with me. Un- Balancing the budget is itself an ef- grandchildren and ensure that Medi- fortunately, it is not a priority in this fective tax cut. Interest on the na- care will go broke in 7 years. legislation. Under this legislation, the tional debt costs the average household I call upon my colleagues and the student loan program will be cut by $5 over $800 a year. Balancing the budget President. billion. This is unacceptable to me. more quickly and forgoing a tax cut Let us surprise America today. I oppose this legislation because it paid for with borrowed money would Let us prove that we can balance the increases taxes on working families. By ease the burden of these hidden taxes. budget in 7 years, save Medicare, and cutting the Earned Income Tax Credit, Balancing the budget more quickly begin to lift this crippling debt from the bill denies help to those who prac- would also lower interest costs for the shoulders of our children and tice self help. It seems to me that if we mortgages and student loans—saving grandchildren. are serious about moving people from families thousands of dollars. Ms. MIKULSKI. Mr. President, To- public assistance to private employ- I cannot support this conference re- night we are choosing between two ment, the first step is to make work port because, like the budget plan con- paths for our country. We are defining pay. The EITC makes work pay. It en- sidered by the Senate on October 27, it what kind of country we want to be, sures that work is more beneficial for a proposes to borrow $245 billion to pay and how we are going to meet the chal- family than welfare. I will not support for a tax cut that we cannot now af- lenges of the 21st century. this bills cuts in the EITC program, ford. I strongly support balancing the The bill before us offers one type of which amounts to tax increases for budget in seven years and realize that choice. This bill offers us a future working families. this cannot be achieved without under- where we say: No to opportunity in the Mr. President, make no mistake. We taking some difficult spending cuts. It United States of America. No to eco- must balance the budget. But we must is my hope that Congress and the nomic security for our seniors. No to do it based on principles that preserve President can work together on a bi- educational opportunities for young economic security for senior citizens, partisan balanced budget plan. people. No to an opportunity structure that provide opportunity for young Mr. SIMON. Mr. President, when for working families. people, and that ensure opportunity for nearly 500 college and university presi- Mr. President, I reject that choice. I working families. dents speak on an issue, Congress want a future where we give help to I cannot and will not support any should stop and listen. Yesterday, 472 those who practice self help. I want a legislation that abandons these prin- presidents contacted President Clinton future in which senior citizens can ciples. Therefore, I will vote against and the congressional leadership to have economic security and peace of this legislation. urge that competition be maintained in mind in their retirement years. I want Mr. COHEN. Mr. President, the moral the student loan programs. We should a future where young people can get an imperative for balancing the budget is listen. education that leads to a job and real to stop Congress from passing on a Colleges should be able to choose economic opportunity. I want a future mountain of debt to future genera- whether to participate in the direct where we give a helping hand to work- tions. Thomas Jefferson reminded us student loan program or the guarantee ing Americans who are doing their best that a generation that spends money program. The bill we are considering to provide for their families. while taxing another ‘‘squanders futu- this evening does the opposite, forcing Let me tell you why I oppose this rity on a massive scale.’’ 1250 colleges out of the direct loan pro- bill. Yes, I support a balanced budget. Persistent budget deficits reduce the gram, and preventing hundreds of oth- But to achieve that we have to put pol- pool of savings necessary for critical ers who want in from getting in. itics and partisanship aside, and work investments in new research, plants As my colleagues will see from the together to find what I will call the and equipment. Virtually every econo- list of presidents signing the letter, sensible center. And this bill does not mist agrees that without these invest- free choice is not only the desire of col- allow for that. ments, standards of living cannot rise. leges in the direct loan program, but This legislation attacks economic se- Our collective sin has been the amoral many in the guarantee program as curity for senior citizens through cuts indifference with which we have de- well. in their health care. We need to make manded that our children pay for our It is unfortunate that this issue has Medicare solvent. But this bill would extravagances, while robbing them of become so partisan that some of my cut Medicare by $270 billion over the their ability to provide for their own colleagues have turned against prin- next 7 years. Only $90 billion is needed subsistence. This is tantamount to fis- ciples of competition, market forces, to preserve the solvency of the Medi- cal child abuse, a crime for which there and the elimination of red tape, and care system. has been no punishment and, per- turned toward granting monopolies and What are the rest of the cuts for? versely, one for which politicians have entitlements for bankers and middle- They are to pay for tax breaks for the long been rewarded. men—at the expense of students, col- wealthiest of Americans. I reject that. Our constituents, in 1994, urged us to leges, and taxpayers. I say let us do what we need to do to stop the pain. Republicans proposed to The letter from the college and uni- make Medicare solvent. But let us put do precisely that. Despite the defeat versity presidents speaks for itself, and tax cuts on hold for a year. We have earlier this year of a constitutional I ask unanimous consent that it be made so many reductions in federal amendment that would have mandated printed in the RECORD. programs this year. Let us take the a balanced budget, my Republican col- The PRESIDING OFFICER. Without time to evaluate the impact of those leagues have passed the first plan in 26 objection, it is so ordered. changes. Let us see where we are in 1 years that produces bottom line equi- (See exhibit 1.) year. Then we can take a look at librium within a seven-year time Mr. SIMON. Mr. President, I would whether we can afford to provide tax frame. also like to respond to a statement cuts. And if in a year we do decide we I take no issue with the need for deep made earlier by my colleague from can provide tax cuts, let’s provide them spending reductions, but I am skeptical Kansas, who chairs the Labor and for America’s working families. Not for that we can achieve our goal while cut- Human Resources Committee. She the truly wealthy. ting taxes simultaneously. It strikes made the statement that the bill we I oppose this legislation because it me that this approach rivals driving are considering today makes income- denies educational opportunity to with one foot on the gas pedal while contingent repayment available to all young people and an opportunity struc- the other is on the brake. students. S 17304 CONGRESSIONAL RECORD — SENATE November 17, 1995 My colleague is mistaken. The bill tingent repayment option, which is only pos- University of North Alabama, Robert L. gives this option to banks, not to stu- sible through direct leading. At the institu- Potts, President. dents. Section 4003(d) of the bill states tional level, direct lending has eliminated Wallace Community College-Selma, Julius clearly that this option is offered ‘‘at redundant paperwork, reduced staff time al- R. Brown, President. located to dealing with thousands of lenders ARIZONA the discretion of the lender.’’ In fact, and dozens of guarantors and other Arizona State University, Lattie F. Coor, few banks are likely to use this discre- intermediaries, and vastly improved our President. tion because of the difficulty of con- overall aid delivery processes because it Chandler Gilbert Community College Cen- seamlessly integrates with other federal aid firming borrowers’ incomes accurately. ter, Margaret P. Hogan, Acting President. They also will no longer face the com- programs. Devry Institute of Technology-Phoenix, Those of us who represent institutions that petition from direct lending, which has James A. Dugan, President. are satisfied with the guaranteed student caused lenders to be more flexible in Paradise Valley Community College, Raul loan program also support the continued offering repayment options to borrow- Cardenas, President. availability of the direct loan program to in- ers. The reconciliation bill not only stitutions. The competition created by direct ARKANSAS eliminates schools from direct lending, lending has induced banks and guarantors to Hendrix College, Ann H. Die, President. it also also places several new obsta- improve the efficiency of their delivery proc- Philander Smith College, Myer L. Titus, cles in the way of these borrowers who, ess, and has, for the first time, provided the President. under current law, can get into direct student loan industry with market-based in- Red River Technical College, Johnny lending in order to get access to in- centives to provide better service. The guar- Rapert, President. come-contingent repayment. anteed student loan system has improved University of Central Arkansas, Winfred L. Thompson, President. For these reasons, it is likely that more since the phase-in of direct lending two years ago than it did over the more than two Williams Baptist College, Jerol Swaim, fewer borrowers will have access to decades of its existence prior to 1993. These President. this important repayment option, rath- improvements were brought about by the CALIFORNIA er than more borrowers. fact that schools can now select the student Mr. President, for these and many California Academy of Merchandising, Art, loan program that provides them with the & Design, Gary D. Kerber, President. other reasons, I urge my colleagues to best service. Capping or otherwise limiting California State Polytechnic University, oppose the conference report. the direct loan program would undermine Pomona, Bob H. Suzuki, President. EXHIBIT 1 the market-based incentives that have so California State University, Bakersfield, dramatically improved the guaranteed stu- AMERICAN COUNCIL ON EDUCATION, Tomas A. Arciniega, President. dent loan system. The student loan system Washington, DC, November 16, 1995. California State University, Chico, Manuel needs more competition, not less. Hon. WILLIAM JEFFERSON CLINTON, A. Esteban, President. The current direct lending legislation was President of the United States, The White California State University, Fresno, John enacted as a bipartisan compromise a mere House, Washington, DC. D. Welty, President. two years ago. Some 1,400 schools, relying in DEAR MR. PRESIDENT: In the coming weeks, California State University, Fullerton, good faith upon what was presented to them you and the Congress will decide the fate of Milton A. Gordon, President. as a major federal initiative, have invested one of the most innovative federal student California State University, Sacramento, substantial institutional resources to imple- aid programs: the Federal Direct Student Donald Gerth, President. ment a program that they believed would Loan Program. We are very concerned about California State University, Stanislaus, better meet the needs of their students. efforts in Congress to limit direct lending, Marvalene Hughes, President. These same schools, and several hundred which currently provides about 40 percent of Coast Community College District, Wil- others that have been planning to join the all student loans. We oppose any provision liam M. Vega, Chancellor. program in its third year, now confront the that would arbitrarily limit the ability of College of Alamenda, George Herring, prospect of massive disruptions to their fi- schools to participate in direct lending, as President. nancial aid operations and their institu- we would oppose any effort to force schools Contra Costa College, D. Candy Rose, tional planning. If direct lending is capped, into direct lending against their wishes. We President. many of these schools would be required to ask that in your deliberations with the Con- Cypress College, Christine Johnson, Presi- commit new institutional resources to pay gress about the future of federal student dent. for yet another overhaul of their loan deliv- loans, you retain institutional choice with Fresno City College, Brice W. Harris, ery system. regard to the participation of colleges and President. Schools now have the option of participat- universities in either the direct student loan Fullerton College, Vera M. Martinez, ing in direct lending or the guaranteed stu- or the guaranteed student loan (Federal President. dent loan program based on their assessment Family Educational Loan) program. Los Angeles City College, Jose Robledo, We write as presidents and chancellors of of which program works best for their stu- President. colleges and universities that are currently dents. This has provided a strong incentive Los Angeles Mission College, William E. participating, or plan to participate, in di- to both the Department of Education and to Norlund, President. rect lending, as well as those that intend to the student loan industry to improve the Merced College, E. Jan Moser, Super- continue their participation in the guaran- quality of their service to borrowers and intendent and President. teed student loan program. Maintaining the schools. This is precisely the outcome that Napa Valley College, Diane E. Carey, Su- availability of both direct and guaranteed the bipartisan architects of current direct perintendent and President. loans is a sound policy that should be pre- lending law intended in reforming the stu- National University, Jerry C. Lee, Presi- served, because schools’ ability to join either dent loan system two years ago. We urge you dent. of the two programs has improved the stu- to allow the forces of competition to con- Pasadena City College, Jack Scott, Presi- dent loan process for all students and tinue to determine what percentage of the dent. schools, regardless of whether or not they student loan market each program captures San Diego City College, Larry J. Brown, participate in direct lending. by retaining the current direct lending law. Acting President. Those of us who represent colleges and uni- Sincerely, San Francisco State University, Robert versities already in direct lending can attest Submitted on behalf of the following col- Corrigan, President. to the improvements it has brought about leges and universities: Santa Barbara City College, Peter for our institutions. We can report first-hand ALABAMA MacDougall, President. on the benefits of direct lending for our stu- Alabama Agricultural & Mechanical Uni- Santa Clara University, Rev. Paul dents: the simplicity of application, the versity, Virginia A. Caples, Interim Presi- Locatelli, S.J., President. speed of delivery of funds, the disappearance dent. Sonoma State University, Ruben of lines of students waiting to endorse their Alabama State University, William H. Har- Arminana, President. checks at registration time, the precipitous ris, President. Southwestern College, Joseph M. Conte, drop in the number of emergency loans is- Auburn University, William V. Muse, Superintendent and President. sued to students waiting to hear about their President. University of California, Berkeley, Chang- loans from banks and guarantors, and fewer Auburn University at Montgomery, Guin Lin Tien, Chancellor. visits to financial aid offices. Students often Nance, President. University of California, Davis, Larry N. borrow less under direct lending because Jacksonville State University, Harold J. Vanderhoef, Chancellor. they know they can adjust their loan McGee, President. University of California, Irvine, Laurel L. amounts without repeating the entire appli- Jefferson State Community College, Judy Wilkening, Chancellor. cation process, and therefore only borrow M. Merritt, President. University of California, Los Angeles, Win- what they believe they need, not the maxi- Stillman College, Cordell Wynn, President. ston C. Body, Vice Chancellor. mum for which they are eligible. Students Tuskegee University, Benjamin Payton, University of California, Riverside, Ray- will also reap the benefits of the income-con- President. mond L. Orbach, Chancellor. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17305 University of California, San Francisco, Morris Brown College, Samuel D. Jolly, Manchester College, Parker G. Marden, Joseph B. Martin, Chancellor. Jr., President. President. University of California, Santa Barbara, Savannah State College, John T. Wolfe, Rose-Hulman Institute of Technology, Henry T. Yang, Chancellor. Jr., President. Samuel F. Hulbert, President. University of California, Santa Cruz, Karl Southern College of Technology, Stephen Saint Francis College, Sister M. Elise S. Pister, Chancellor. R. Cheshier, President. Kriss, OSF, President. University of San Francisco, Rev. John Spelman College, Johnnetta B. Cole, Presi- Saint Meinrad College, Rev. Eugene Schlegel, S.J., President. dent. Hensell, O.S.B., President-Rector. West Hills Community College, Frank P. Valdosta State College, Hugh C. Bailey, Valparaiso University, Alan Harre, Presi- Gornick, President. President. dent. West Los Angeles College, Evelyn Wong, Wesleyan College, Robert Ackerman, IOWA President. President. Graceland College, William Higdon, Presi- COLORADO HAWAII dent. Colorado State University, Albert C. University of Hawaii at Hilo, Kenneth L. Iowa State University, Martin C. Jischke, Yates, President. Perrin, Chancellor. President. Community College of Denver, Byron University of Hawaii Kauai Community Luther College, David J. Roslien, Interim McClenney, President. College, David Iha, Provost. President. Iliff School of Theology, Donald E. Messer, IDAHO Marshalltown Community College, William President. Boise State University, Charles P. Ruch, M. Simpson, Dean of the Dean. Mount Mercy College, Thomas Feld, Presi- Regis University, Rev. Michael J. Sheeran, President. S.J., President. College of Southern Idaho, Gerald R. dent. North Iowa Area Community College, University of Colorado at Boulder, Roderic Meyerhoeffer, President. B. Park, Chancellor. University of Idaho, Thomas O. Bell, In- David L. Buettner, President. Northeast Iowa Community College, Don CONNECTICUT terim President. Roby, President. Central Connecticut State University, ILLINOIS University of Iowa, Peter Nathan, Acting Merle W. Harris, Interim President. Bradley University, John R. Brazil, Presi- President. Western Connecticut State University, dent. University of Northern Iowa, Robert D. James R. Roach, President. College of St. Francis, James Doppke, Koob, President. DELAWARE President. KANSAS Columbia College, John B. Duff, President. Delaware State University, William B. Cloud County Community College, James DeLauder, President. DeVry Institute of Technology-Chicago, E. Arthur Stunard, President. D. Ihrig, President. Delaware Technical & Community College Highland Community College, Elizabeth E. System, Orlando George, Jr., President. DeVry Institute of Technology-Addison, Jerry R. Dill, President. Stevens, President. University of Delaware, David Roselle, Kansas Wesleyan University, Marshall P. President. Eastern Illinois University, David Jorns, President. Stanton, President. DISTRICT OF COLUMBIA Greenville College, Robert E. Smith, Presi- McPherson College, Paul W. Hoffman, American University, Benjamin Ladner, dent. President. President. Highland Community College, Ruth Mer- Southwestern College, Carl Martin, Presi- Catholic University of America, Brother cedes Smith, President. dent. Patrick Ellis, FSC, President. Illinois Central College, Thomas K. Thom- University of Kansas, Edward Meyen, Ex- University of The District of Columbia, as, President. ecutive Vice Chancellor. Tilden Lemelle, President. Illinois Valley Community College, Alfred KENTUCKY FLORIDA Wisgoski, President. Kentucky State University, Mary L. Lincoln College, Jack D. Nutt, President. Barry University, Sister Jeanne Smith, President. Loyola University Chicago, Rev. John J. Morehead State University, Ronald Eaglin, O’Laughlin, O.P., President. Piderit, S.J., President. Bethune-Cookman College, Oswald P. President. Morrison Institute of Technology, Richard Sullivan College, A.R. Sullivan, President. Bronson, Sr., President. C. Parkinson, President. University of Kentucky, Charles Central Florida Community College, Wil- Northwestern Business College, Lawrence Wethington, Jr., President. liam Campion, President. Schumacher, President. Western Kentucky University, Thomas Edward Waters College, Jesse Burns, Presi- Parkland College, Zelma M. Harris, Presi- Meredith, President. dent. dent. LOUISIANA Keiser College of Technology, Arthur Southern Illinois University, Ted Sanders, Elaine P. Nunez Community College, Carol Keiser, President. Chancellor. Palm Beach Atlantic College, Paul Corts, Southern Illinois University at S. Hopson, President. Southern University and A & M College, President. Edwardsville, Nancy Belck, President. Rollins College, Rita Bornstein, President. St Joseph College of Nursing, Virginia Marvin Yates, Chancellor. Xavier University of Louisiana, Norma C. Santa Fe Community College, Lawrence Keck, President. Tyree, President. University of Chicago, Hugo F. Francis, President. Southern College, Daniel F. Moore, Presi- Sonnenschein, President. MAINE dent. University of Illinois, James J. Stukel, Bates College, Donald W. Harward, Presi- University of Florida, John V. Lombardi, President. dent. President. University of Illinois at Springfield, Naomi Colby College, William Cotter, President. University of South Florida, Betty Castor, B. Lynn, Chancellor. Thomas College, George R. Spann, Presi- President. University of Illinois at Chicago, David C. dent. University of West Florida, Morris L. Broski, interim Chancellor. University of Maine System, Robert L. Marx, President. Wilbur Wright College, Raymond Le Woodbury, Chancellor. GEORGIA Fevour, President. University of Maine Presque Isle, W. Mi- Atlanta Christian College, R. Edwin Groov- William Rainey Harper College, Paul N. chael Easton, President. er, President. Thompson, President. University of Southern Maine, Richard L. Bauder College, Gary Kerber, President. INDIANA Pattenaude, President. Clark Atlanta University, Thomas W. Cole, Ball State University, John E. Worthen, MARYLAND Jr., President. President. Bowie State University, Nathaniel Pollard DeKalb College, Jacquelyn M. Belcher, Commonwealth Business College, Steven Jr., President. President. C. Smith, President. Coppin State College, Calvin Burnett, Devry Institute of Technology, Ronald Earlham College, Richard J. Wood, Presi- President. Bush, President. dent. Frostburg State College, Catherine R. Fort Valley State College, Oscar L. Prater, Goshen College, Victor Stolozfus, Presi- Gira, President. President. dent. Garrett Community College, Stephen Her- Georgia College, Edwin Speir, President. Indiana University at Bloomington, Ken- man, President. Georgia Southern University, Nicholas neth R.R. Gros Louis, Vice President and Hood College, Shirley, D. Peterson, Presi- Henry, President. Chancellor. dent. Interdenominational Technological Center, Indiana University at South Bend, Lester Johns Hopkins University, Daniel Nathans, James Costen, President. C. Lamon, Acting Chancellor. President. Mercer University Main, R. Kirby Godsey, Indiana University System, Myles Brand, Loyola College in Maryland, Rev. Harold President. President. Ridley, S.J., President. S 17306 CONGRESSIONAL RECORD — SENATE November 17, 1995 Salisbury State College, William Ferris State University, William A. Vatterott College, John C. Vatterott, Bellavance, President. Sederburg, President. President. Towson State University, Hoke L. Smith, Grand Valley State University, Arend D. William Jewell College, W. Christian President. Lubbers, President. Sizemore, President. University of Maryland System, Don Henry Ford Community College, Andrew MONTANA Langenberg, Chancellor. A. Mazzara, President. Carroll College, Matthew J. Quinn, Presi- University of Maryland Eastern Shore, Hope College, John H. Jacobson, President. dent. William P. Hytche, President. Kalamazoo College, Lawrence D. Bryan, Montana State University, Michael Ma- University of Maryland University College, President. lone, President. T. Benjamin Massey, President. Kellogg Community College, Paul R. Ohm, University of Montana, George A. MASSACHUSETTS President. Lake Superior State University, Robert Dennison, President. Amherst College, Tom Gerety, President. Arbuckle, President. NEBRASKA Berklee College of Music, Lee Eliot Berk, Lansing Community College, Abel B. President. Chadron State College, Samuel H. Rankin, Sykes, President. President. Boston University, John R. Silber, Presi- Lawrence Institute of Technology, Charles dent. Dana College, Myrvin F. Christopherson, M. Chambers, President. President. Brandeis University, Jehuda Reinharz, Michigan State University, M. Peter President. Midland Lutheran College, Carl Hansen, McPherson, President. President. Bridgewater State College, Adrian Tinsley, Michigan Technological University, Curtis President. University of Nebraska-Lincoln, Joan R. J. Tompkins, President. Leitzel, Interim Chancellor. College of the Holy Cross, Rev. Gerard Northen Michigan University, William E. Reedy, S.J., President. Vandament, President. NEVADA Emerson College, Jacqueline Liebergott, Oakland University, Gary D. Russi, In- University of Nevada Las Vegas, Carol C. President. terim President. Harter, President. Fitchburg State College, Michael Riccards, University of Michigan-Ann Arbor, James NEW HAMPSHIRE President. Duderstadt, President. Franklin Institute of Boston, Richard Daniel Webster College, Hannah McCarthy, University of Michigan-Dearborn, James C. President. D’Onofrio, President. Renick, Chancellor. Harvard University, Neil, Rudenstine, McIntosh College, Robert DeColfmacker, University of Michigan-Flint, Charles President. President. Nelms, Chancellor. Holyoke Community College, David M. Wayne State University, David Adamany, NEW JERSEY Bartley, President. President. Berkeley College of Business Garret Massachusetts College of Art, William Western Michigan University, Diether H. Mount, Kevin L. Luing, President. O’Neil, President. Haenicke, President. Burlington County College, Robert C. Massachusetts Institute of Technology, Messina, Jr., President. MINNESOTA Charles M. Vest, President. Camden County College, Phyllis Della Massachusetts Maritime Academy, Peter Bemidji State University, James Bensen, Vecchia, President. M. Mitchell, President. President. Jersey City State College, Carlos Hernan- Mount Ida College, Bryan Carlson, Presi- Gustavus Adolphus College, Axel D. dez, President. dent. Steuer, President. Monmouth University, Rebecca Stafford, Mt. Holyoke College, Peter Berek, Presi- Hamline University, Larry G. Osnes, Presi- President. dent. dent. New Jersey Institute of Technology, Saul New England College of Optometry, Larry Minnesota State Colleges and Universities Fenster, President. R. Clausen, President. System, Judith S. Eaton, Chancellor. Ramapo College of New Jersey, Robert Rasmussen College-St. Cloud, Kathleen North Adams State College, Thomas Scott, President. Rau Szczech, President. Aceto, President. Richard Stockton College of New Jersey, University of Minnesota-Crookston, Don- Quinsigamond Community College, Sandra Vera King Farris, President. ald Sargeant, Chancellor. L. Kurtinitis, President. Rowan College of New Jersey, Herman D. University of Minnesota-Duluth, Kathryn Smith College, Ruth J. Simmons, Presi- James, President. A. Martin, Chancellor. dent. Rutgers, State University of New Jersey, University of Minnesota-Twin Cities, Nils Stonehill College, Rev. Bartley Francis Lawrence, President. Hasselmo, President. MacPhaidin, C.S.C., President. Saint Peter’s College, Rev. James N. Tufts University, John DiBiaggio, Presi- MISSISSIPPI Loughran, S.J., President. dent. Alcorn State University, Clinton Bristow, Seton Hall University, Rev. Thomas R. Pe- University of Massachusetts Lowell, Wil- Jr., President. terson, O.P., Chancellor. liam T. Hogan, Chancellor. Delta State University, Kent Wyatt, Presi- Trenton State College, Harold W. Eickhoff, University of Massachusetts System, Sher- dent. President. ry H. Penny, President. Mary Homes College, Sammie Potts, Presi- William Paterson College of New Jersey, Westfield State College, Ronald L. dent. Arnold Speert, President. Applbaum, President. Mississippi University for Women, Clyda S. NEW MEXICO Wheaton College, Dale Rogers Marshall, Rent, President. President. Mississippi Valley State University, Wil- New Mexico Junior College, Charles D. Williams College, Harry C. Payne, Presi- liam W. Sutton, President. Hays, President. dent. Tougaloo College, Joe A. Lee, President. University of New Mexico, Richard Peck, President. MICHIGAN MISSOURI Alma College, Alan Stone, President. Central Missouri State University, Ed El- NEW YORK Alpena Community College, Donald L. liott, President. Newport, President. Culver-Stockton College, Edwin B. Strong, Bank Street College of Education, Augusta Andrews University, Niels-Erik Andreasen, Jr., President. Kappner, President. President. Deaconess College of Nursing, Elizabeth Berkeley College, Rose Mary Healy, Presi- Baker College of Auburn Hills, Sandra Kay Krekorian, President. dent. Krug, President. Lincoln University, Wendell G. Rayburn, Berkeley College of New York City, Robert Baker College of Jackson, Jack Bunce, Sr., President. J. Hurd, President. President. Maryville University of Saint Louis, Keith Clarkson University, Dennis G. Brown, Baker College of Mount Clemens, Rodolfo Lovin, President. President. Morales, Jr., President. Missouri Southern State College, Julio College of New Rochelle, Sister Dorothy Baker College of Muskegon, Rick E. Leon, President. Ann Kelly, O.S.U., President. Amidon, President. Northwest Missouri State University, Dean Cornell University, Hunter R. Rawlings III, Baker College of Owosso, Denise A. L. Hubbard, President. President. Bannon, President. Rockhurst College, Rev. Thomas J. Sav- City University of New York, W. Ann Baker College of Port Huron, Donald age, S.J., President. Reynolds, Chancellor. Torline, President. Saint Louis University, Rev. Lawrence CUNY Borough of Manhattan Community Baker College System, Edward Kurtz, Biondi, S.J., President. College, Antonio Perez, President. President. St. Louis Community College, Gwendolyn CUNY Brooklyn College, Vernon Lattin, Calvin College, Gaylen J. Byker, President. W. Stephenson, President. President. Central Michigan University, Leonard University of Missouri-Columbia, Charles CUNY City College, Yolanda T. Moses, Plachta, President. Kiesler, Chancellor. President. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17307 CUNY College of Staten Island, Marlene North Carolina School of The Arts, Alexan- Lehigh Carbon Community College, James Springer, President. der Ewing, Chancellor. R. Davis, President. CUNY Graduate School & University Cen- Saint Augustine’s College, Bernard W. Lincoln University, Niara Sudarkasa, ter, Frances Degen Horowitz, President. Franklin, President. President. CUNY Herbert H. Lehman College, Ricardo University of North Carolina at Asheville, Northampton Community College, Robert Fernandez, President. Patsy B. Reed, Chancellor. Kopecek, President. CUNY Medgar Evers College, Edison Jack- University of North Carolina Charlotte, Philadelphia College of Pharmacy & son, President. James H. Woodward, Chancellor. Science, Philip Gerbino, President. CUNY New York City Technical College, Western Carolina University, John W. Robert Morris College, Edward A. Nichol- Charles W. Merideth, President. Bardo, Chancellor. son, President. CUNY Queens College, Allen Lee Sessoms, Winston-Salem State University, Gerald PUERTO RICO President. McCants, Interim Chancellor. Inter American University of Puerto Rico, CUNY York College, Thomas K. Minter, OHIO Jose R. Gonzalez, President. President. Ashland University, G. William Benz, Pontifical Catholic University of Puerto Dowling College, Victor P. Meskill, Presi- President. Rico, Rev. Tosello Giangiacomo, C.S.Sp., dent. Bowling Green State University, Sidney A. President. Fordham University, Rev. Joseph A. Ribeau, President. University of Puerto Rico Humacao, Ro- O’Hare, S.J., President. Case Western Reserve University, Agnar berto Marrero-Corletto, Chancellor. LeMoyne College, Rev. Robert A. Mitchell, Pytte, President. University of Puerto Rico System, Norman S.J., President. Cleveland Institute of Music, David Maldonado, President. Long Island University, David Steinberg, Cerone, President. University of The Sacred Heart, Jose President. College of Wooster, R. Stanton Hales, Jaime Rivera, President. Marymount College, Sister Brigid Driscoll, President. RHODE ISLAND R.S.H.M., President. Cuyahoga Community College, Jerry Sue New York College of Podiatric Medicine, Brown University, Vartan Gregorian, Thornton, President. President. Louis L. Levine, President. Denison University, Michelle Myers, Presi- Onondaga Community College, Bruce H. Community College of Rhode Island, Ed- dent. ward J. Liston, President. Leslie, President. Devry Institute of Technology, Galen H. Pace University New York Campus, Patri- Rhode Island School of Design, Roger Graham, Acting President. Mandle, President. cia O’ Donnell Ewers, President. Hiram College, G. Benjamin Oliver, Presi- Pace University Pleasantville-Briarcliff University of Rhode Island, Bob Roth, Spe- dent. cial Assistant to the President. Campus, Patricia O’Donnell Ewers, Presi- Kent State University, Carol Cartwright, dent. President. SOUTH CAROLINA Rensselaer Polytechnic Institute, R. Byron Miami University, Paul G. Risser, Presi- Benedict College, David H. Swinton, Presi- Pipes, President. dent. dent. Roberts Wesleyan College, William C. Ohio University, Robert Glidden, Presi- Claflin College, Henry Tisdale, President. Crothers, President. dent. College of Charleston, Alexander M. Sand- Rochester Institute of Technology, Albert Ohio Wesleyan University, Thomas B. ers, Jr., President. J. Simone, President. Courtice, President. Greenville Technical College, Thomas E. Schenectady County Community College, Southeastern Business College, Robert Barton, President. Gabriel Basil, President. Shirey, President. Morris College, Luns C. Richardson, Presi- St. Lawrence University, Patti McGill Pe- Southern State Community College, Law- dent. terson, President. rence N. Dukes, President. South Carolina State University, Leroy SUNY at Binghamton, Lois B. DeFleur, University of Findlay, Kenneth E. Zirkle, Davis, Interim President. President. President. The Citadel, Claudius Watts, President. SUNY at Buffalo, William R. Greiner, University of Rio Grande, Barry M. Dorsey, Trident Technical College, Mary Thornley, President. President. President. Winthrop University, Anthony J. SUNY College at Brockport, John Van de University of Toledo, Frank E. Horton, DiGiorgio, President. Wetering, President. President. SUNY College at Cortland, Judson H. Tay- Xavier University of Ohio, Rev. James E. SOUTH DAKOTA lor, President. Hoff, S.J., President. National College, Jerry L. Gallentine, SUNY College at Plattsburgh, Horace OKLAHOMA President. Judson, President. TENNESSEE SUNY College at Potsdam, William C. Langston University, Ernest L. Holloway, Merwin, President. President. Crichton College, Larry R. Brooks, Presi- SUNY College of Agriculture & Technology Oklahoma State University, Harry dent. at Morrisville, Frederick W. Woodward, Birdwell, Vice President, Business & Exter- Fisk University, Henry Ponder, President. President. nal Relations. LeMoyne-Owen College, Earl Vinson, Sen- SUNY College of Technology at Canton, St. Gregory’s College, Frank Pfaff, Presi- ior Vice President. Middle Tennessee State University, James Joseph L. Kennedy, President. dent. Walker, President. SUNY Herkimer County Community Col- OREGON Motlow State Community College, A. lege, Ronald F. Williams, President. Eastern Oregon State College, David Gil- Frank Glass, President. SUNY Hudson Valley Community College, bert, President. Tennessee State University, James A. Hef- Joseph Balmer, President. George Fox College, Edward Stevens, ner, President. SUNY Institute of Technology At Utica President. Tennessee Technological University, An- Rome, Peter J. Cayan, President. Portland Community College, Daniel F. gelo A. Volpe, President. SUNY Institute of Technology At Delhi, Moriarty, President. The University of Tennessee at Chat- Mary Ellen Duncan, President. Southern Oregon State College, Stephen J. tanooga, Frederick W. Obear, Chancellor. SUNY Monroe Community College, Peter Reno, President. TEXAS A. Spina, President. University of Oregon, Dave Frohnmayer, Teachers College, Columbia University, President. Austin College, Oscar Page, President. Arthur Levine, President. Western Oregon State College, Betty J. Brookhaven College, Walter G. Bumphus, University of Rochester, Thomas H. Jack- Youngblood, President. President. son, President. Del Mar College, Terry L. Dicianna, Presi- PENNSYLVANIA dent. NORTH CAROLINA Beaver College, Bette E. Landman, Presi- Devry Institute of Technology, Francis V. Applachian State University, Francis T. dent. Cannon, President. Borkowski, Chancellor. Carnegie Mellon University, Robert East Texas State University, Jerry P. Mor- Belmont Abbey College, Robert A. Preston, Mehrabian, President. ris, President. President. Cheyney University of Pennslyvania, Don- Houston Baptist University, E.D. Hodo, Fayetteville State University, Donna J. ald L. Mullen, President. President. Benson, Interim Chancellor. CHI Institute, Joseph F. Colyar, President. Palo Alto College, Joel E. Vela, President. Elizabeth City State University, M.L. Franklin and Marshall College, Richard Prairie View A & M University, Charles Burnim, Interim Chancellor. Kneedler, President. Hines, President. Livingstone College, Roy D. Hudson, In- ICM School of Business, Gary Kerber, Richland College, Stephen K. Mittelstet, terim President. President. President. North Carolina Agricultural & Technical Lebanon Valley College, John Synodinos, Southwest Texas State University, Jerome State University, Edward Fort, Chancellor. President. H. Supple, President. S 17308 CONGRESSIONAL RECORD — SENATE November 17, 1995 Tarrant County Junior College District, C. St. Norbert College, Thomas A. Manion, Are you on the side of middle-class A. Roberson, Chancellor. President. Americans? Are you on the side of our University of North Texas, Alfred F. Hur- University of Wisconsin System, Katharine senior citizens, of middle-class families Lyall, President. ley, Chancellor. struggling to send their children to col- University of North Texas Health Science University of Wisconsin-Eau Claire, Larry Center, Alfred F. Hurley, Chancellor. Schnack, Chancellor. lege, and of lower income working fam- University of Texas at Dallas, Franklyn G. University of Wisconsin-La Crosse, Judith ilies? Jenifer, President. L, Kuipers, Chancellor. Or are you on the side of the wealthy University of Wisconsin-Milwaukee, John VERMONT and the special interests? H. Schroeder, Chancellor. The Republican reconciliation bill is Castleton State College, Martha K. Farm- University of Wisconsin-Stout, Charles W. er, President. paydirt for the rich and the special in- Sorenson, Chancellor. terests and senior citizens and working Community College of Vermont, Barbara University of Wisconsin-Superior, Jan G. Murphy, Interim President. Womack, Chancellor. class families get stuck footing the Johnson State College, Robert Hahn, Mr. PRESSLER. Mr. President, the bills. President. Balanced Budget Act of 1995 extends This is an outrage—and we Demo- Lyndon State College, Peggy Williams, crats are going to fight it as a basic President. the FCC’s auction authority for the first time to any situation in which the matter of principle. Middlebury College, John M. McCardell, We saw what happened with the con- FCC must choose between mutually ex- Jr., President. tinuing resolution when the public University of Vermont, Thomas P. Salmon, clusive applications—including appli- caught on to the scheme. Under the President. cations for broadcast facilities. For spotlight, the Republicans blinked, Vermont State College System, Charles I. this reason, Mr. President, I want to they retreated, they ran. They wanted Bunting, Chancellor. take just a moment to explain the ac- Vermont Technical College, Robert Clarke, to escape the public wrath and quickly tions and intentions of the Committee President. abandoned their deep principles for po- on Commerce, Science, and Transpor- VIRGINIA litical cover. tation. I want all my colleagues to un- This bill makes the biggest cuts in Central Virginia Community College, Belle derstand the auction authority extends S. Wheelan, President. the history of Medicare. Hampton University, William R. Harvey, only to mutually exclusive applica- And the Republicans build their case President. tions for new facilities not already around a false premise. Hollins College, Jane Margaret O’Brien, pending at the FCC. They argue that in order to save President. Applications for renewal, modifica- Medicare, we must destroy its fun- Norfolk State University, Harrison B. Wil- tion, or upgrade of existing facilities damental mission. This is simply not son, President. are not covered under this provision. Northern Virginia Community College, true. Similarly, the committee does not in- And they ought to be honest with the Richard Ernst, President. tend—in cases in which an application Old Dominion University, Jo Ann Gora, American people about the two major Acting President. has already been accepted by the FCC— Republican falsehoods. Virginia Commonwealth University, Eu- that auctions be used to resolve that The first false statement that the Re- gene P. Trani, President. proceeding. I understand that, as the publicans make is that we need $270 Virginia State University, Eddie N. Moore, result of a court decision, the FCC has billion to save Medicare. This is simply President. not technically accepted certain appli- untrue. Wytheville Community College, William cations. The Republicans are using this $270 Snyder, President. The committee’s intention is that if billion to finance their $245 billion in WASHINGTON any application in a proceeding has tax breaks for the rich folk. Central Washington University, Ivory V. been accepted, the proceeding will be It is no coincidence that the Medi- Nelson, President. resolved under the provisions of exist- care cuts are $270 billion and the tax City University, Michael Pastore, Presi- ing law. breaks for the wealthy total $245 bil- dent. Mr. LAUTENBERG. Mr. President, lion. Spokane Community College, James H. when the roll is called on this budget These figures are remarkably similar Williams, President. University of Washington, Richard L. reconciliation conference report, I will because one is being used to finance McCormick, President. be voting yes. But not for this bill. the other. They are taking from our Washington State University, Samuel H. Instead, I will be voting yes for our senior citizens who paid the bills, Smith, President. seniors—yes for our students—and yes signed the contract, and weathered the Western Washington University, Karen W. for the middle class. storms. And they’re giving it back to Morse, President. And I will be voting no on the con- the wealthy and the special interests. WEST VIRGINIA ference report. The second Republican falsehood is Alderson Broaddus College, Stephen E. I will be voting no on massive Medi- that we need to cut $270 billion to Markwood, President. care cuts to finance tax breaks for the make Medicare solvent. Not true. The Bluefield State College, Robert E. Moore, wealthy. chief HHS Medicare actuary has stated President. I will be voting no on huge tax that we only need $89 billion in savings Fairmont State College, Robert J. breaks for the rich and the special in- to make Medicare solvent until the end Dillman, President. terests. of 2006. Marshall University, J. Wade Gilley, Presi- I will be voting no on devastating dent. Mr. President, let me just give you State College System of West Virginia, cuts in nursing home care for seniors some examples of what kind of tax Clifford M. Trump, Chancellor. and the disabled. breaks these Medicare cuts are paying West Liberty State College, Donald C. I will be voting no on increased taxes for: Darnton, Interim President. for working people. Under this bill, approximately 2,000 West Virginia State College, Hazo W. I will be voting no on ending the safe- large corporations will get a tax break Carter, Jr., President. ty net for children. of $2 million each because of changes in West Virginia University, David C. I will be voting no on the basic the alternative minimum tax. This is Hardesty, Jr., President. thrust of this legislation—that we outrageous. Wheeling Jesuit College, Rev. Thomas must balance the budget on the backs Acker, S.J., President. In addition, this bill contains hun- of working families and senior citizens, dreds of millions of dollars in give- WISCONSIN while handing out billions in tax aways to oil companies. Lakeland College, David Black, President. breaks for the rich and powerful. Finally, the capital gains tax cut in- Lawrence University, Richard Warch, This bill represents the extremes of cluded in this bill is a tax break for the President. Marquette University, Rev. Albert DiUlio, the Republican membership. super rich. Anyone can claim this tax S.J., President. Mr. President, when you get right break. Even millionaires and billion- Northland College, Robert Rue Parsonage, down to it, this bill forces all of us to aires can get this tax break. President. answer a simple question: ‘‘Whose side Mr. President, I tried to draw a line Ripon College, Paul B. Ranslow, President. are you on?’’ on the tax breaks and put the money November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17309 back into Medicare and Medicaid. I of- that process underway. It is only with to America that deficit spending is fered an amendment to the reconcili- the greatest hesitancy that we are re- about to come to an end, no later than ation bill that would have precluded quiring the sale of any oil from the the year 2002, and it has been brought the tax breaks from going to those who Strategic Petroleum Reserve. As the about during the first year of the Re- make over $1 million per year. That’s Senator from Texas knows, the Strate- publican majority in the Congress. the top one-tenth of one percent of all gic Petroleum Reserve is essential for The net result of a balanced budget taxpayers. the protection of our energy security will be lower interest rates for years to I thought this amendment would pass in the event of oil supply interruption, come, and as many as 6 million new unanimously. I thought that we all such as the ones we suffered through in jobs. The reforms in this bill will give could agree that millionaires and bil- 1973 and 1979. That is why the con- the States more control over critical lionaires do not need a tax break when ference report contains provisions entitlement programs. I strongly sup- we are cutting Medicare—especially which provide funding for the replace- port these initiatives which will let the when 75 percent of all Medicare recipi- ment of this oil in the Strategic Petro- States decide how best to serve their ents earn under $25,000 per year. leum Reserve. own citizens. What is best for my State But no—52 of the 53 Republican Sen- Mrs. HUTCHISON. I thank the Chair- of Virginia is not necessarily the same ators voted against my amendment. In man for that response. I would also as what is best for another State, and essence, they voted to cut Medicare to like to know if the conference report this balanced budget act will move provide tax breaks for millionaires and contains any language to assure do- power and money out of Washington, billionaires. mestic oil producers, particularly inde- back to State governments and local Mr. President, Medicare is not just a pendents located in the State of Texas, communities where it belongs. health insurance program. Medicare is that the sale of this oil will not be done When this balanced budget act is fi- a commitment that we have made to by the Department of Energy in such a nally signed into law, and it will be, we our citizens. It is a promise—for those manner as to disrupt the oil market or will have identified the path, but each who work hard their entire lives—that to adversely affect oil prices? year we will have to make spending de- your medical needs will be taken care Mr. MURKOWSKI. Mr. President, the cisions that will keep us on the road of when you retire. answer to the Senator’s question is that is being defined here today. If But this Republican budget uses the yes. When the oil is sold from the emergencies occur, we will have to off- Medicare Program as a slush fund for Weeks Island facility, which is located set their costs with spending reduc- the tax breaks for the wealthy. in Louisiana, the Department of En- tions. Those budget decisions will be as I urge my colleagues to say no to ergy is directed to so do in a manner difficult in the year 2000 as they are Medicare cuts to pay for tax breaks for that does not disrupt the marketplace this year, but this conference report is the rich. or have any noticeable impact on a commitment by the Republicans, and Let’s reject the Republican budget prices. Perhaps the best thing to do is eventually, by the entire Congress, reconciliation bill—let’s start over. to quote from the statutory language that we will stay the course. We can put together a compromise contained in conference report: ‘‘The This is a momentous vote, and I urge bill that moves toward a balanced Secretary shall, to the greatest extent my colleagues to roll up your sleeves, budget but does not destroy our Medi- practical, sell oil from the reserve in a get ready for hard work, and pass this care Program. But this is not such a manner that minimizes the impact of balanced budget act. The Republican bill. such sales upon supply levels and mar- train is here, and it is time to get Unfortunately, this is a bill that ket forces.’’. aboard for a trip to fiscal responsibil- sticks it to ordinary Americans, and Mrs. HUTCHISON. Mr. President, I ity. We have made the commitment to lavishes huge breaks for the rich and thank Senator MURKOWSKI. America and we will carry through on the special interests. I think that’s Mr. WARNER. Mr. President, I have it. wrong. been listening with a great deal of in- NURSING HOME STANDARDS I say: It’s time, for once, to put the terest to the speakers on both sides of Mr. COHEN. Mr. President, I rise to middle class first and defeat this bill. the aisle as the Balanced Budget Act of comment on the need to strengthen our I yield the floor. 1995 has been discussed. Although the commitment to strong nursing home Mrs. HUTCHISON. Mr. President, for President has indicated that he will standards in the budget reconciliation the information of the Senate, I would veto this conference report when he re- bill before us. The conference report on like to discuss with the chairman of ceives it, I am proud to support this the budget bill has come a long way to- the Committee on Energy and Natural document which follows through on ward restoring current Federal nursing Resources, Mr. MURKOWSKI, the provi- our commitment to balance the Na- home standards and strong Federal and sions of the Budget Reconciliation Con- tion’s budget by the year 2002, protect State enforcement of protections for ference Report that relate to the sale Social Security, and save Medicare nursing home residents. It represents a of oil from the Weeks Island Strategic from threatened bankruptcy. America considerable improvement over the Petroleum Reserve storage facility. has not had a balanced budget in over House bill that retreated from Federal This facility is located in Louisiana. a quarter century. standards and enforcement and reflects I say to Chairman MURKOWSKI, a pro- While we are apparently debating a much of the Senate position on nursing vision of the conference report requires bill that has no future, there will be home standards, but we are not there the sale by the Department of Energy successor after successor with the same yet. of oil from the Weeks Island facility. It basic goals until we win. Yes, this will Many patient advocacy groups and is my understanding that the Weeks Is- get a veto from the President, but at colleagues from the other side of the land facility has suffered irreparable the same time, it will signal the begin- aisle have come forward to assail the damage from one and perhaps two frac- ning of a final dialog with the adminis- nursing home provisions included in tures, and that oil within this facility tration on a final Balanced Budget Act this bill, but I would ask them to pause is in danger of leaking into Louisiana’s of 1995. for a moment to recognize that signifi- underground aquifer. It is also my un- America’s financial markets have re- cant headway we have made in the de- derstanding that as a result of these flected the approval of the Republican bate over Federal nursing home stand- fractures, the oil contained in Weeks efforts during the past week. The ards. The debate is no longer over the Islands must be removed and the facil- phone calls and fax messages from my need for national standards and Fed- ity decomissioned. Is that correct? constituents statewide have over- eral oversight of nursing homes, but Mr. MURKOWSKI. Mr. President, the whelmingly supported the position over what national standards are nec- Senator from Texas is correct. The taken by Republicans and reflected in essary to be maintained. I remain cau- leaks she refers to require the oil con- this package. As I indicated when the tious of several of the changes made in tained in the Weeks Island facility to Senate considered this bill, this is not conference agreement which could un- be removed, and the facility to be de- just a budget for another year. This is dermine the improvements nursing commissioned. There is no choice, and not a package of routine legislative home residents and their families have the Department of Energy already has changes. This is a historic commitment witnessed since the enactment of the - S 17310 CONGRESSIONAL RECORD — SENATE November 17, 1995 OBRA 87 regulations, but I recognize The conference agreement on nursing eral revenues. By 2002, revenues will the substantial progress that has been home protections has come a long way exceed spending. made. toward restoring the goal of full pro- One would think, listening to this de- Specifically, I am concerned about tections for millions of nursing home bate, that this budget drastically re- provisions of the bill allowing nursing residents nationwide, but certain criti- duces or eliminates all Federal pro- homes to be accredited by private sec- cal issues remain unresolved. I will grams. For example, it has been argued tor organizations as a way of meeting continue to evaluate the changes pro- by some that proposed reductions State certification requirements. In posed by the conferees and will work would destroy Medicare and Medicaid. the past, private accreditation has with the leadership and consumer This simply is not the case. Both pro- been perceived as a loophole for facili- groups to guarantee adequate protec- grams grow at healthy annual rates. ties to avoid oversight, In order for ac- tion for elderly and disabled nursing Without the proposed reforms, these creditation to be acceptable, we must home residents. programs would grow at unsustainable be sure that the Federal and State gov- Mr. THURMOND. Mr. President, I rates, resulting in dangerous con- ernments retain full authority to mon- rise today in support of the Balanced sequences, even threatening the sol- itor facilities and that standards and Budget Act of 1995, which, for the first vency of the Medicare part A trust residents’ rights are not compromised. time in many years, proposes a budget fund. I also have reservations about several that controls entitlement spending, re- Second, Mr. President, the balanced changes that have been made to cur- strains the growth of Government, and budget act reduces and eventually rent law. For example the bill elimi- eliminates annual deficits. eliminates annual deficits, which is the nates current regulations that restrict For years I have made speeches in amount Government outlays exceed a nursing home from placing extra re- this great Chamber, and cast my vote Government revenues. Without this quirements on Medicaid patients as a in support of a balanced budget. I have bill, annual deficits will continue to in- condition of admission, such as deny- introduced balanced budget amend- crease, exceeding $200 billion per year. ing a Medicaid bed unless a gift, pay- ments in numerous sessions of Con- By enacting this measure, annual defi- ment, or donation is given to the facil- gress, including the 104th Congress. On cits will begin a downward path and ity. Without the current admission pol- July 12, 1982, a balanced budget amend- will be eliminated within the 7-year icy limitations, patients and their fam- ment was brought to the floor. As budget period. The Congressional Budg- ily members will no longer be pro- Chairman of the Judiciary Committee, et Office estimates a surplus by 2002, tected against discrimination based on I was pleased to sponsor and guide that allowing us to begin reducing the na- source of payment and duration of stay important measure to passage. On Au- tional debt. contracts. gust 4, 1982, 69 Senators voted in favor The results of this deficit reduction, It also removes the requirement that of the resolution. While a majority sup- Mr. President, have been estimated to facilities provide care and services to ported it in the House, if failed to re- stimulate economic growth, reduce in- allow each resident to attain or main- ceive the necessary two-thirds vote. In terest rates, increase employment op- tain his or her highest practicable level March 1986, the Senate voted on an- portunities, and result in a higher of physical mental, and psychosocial other balanced budget amendment. It standard of living for all Americans. functioning. While this standard may Mr. President, in addition to control- was unfortunate that the resolution sound a bit abstract, it was a key ling Government spending, this bal- failed by one vote. Earlier this year, phrase negotiated in the OBRA 87 re- anced budget act addresses Govern- the balanced budget amendment again quirements to encourage nursing facili- ment revenues. Under this bill, Govern- failed by one vote. However, I am con- ties to provide the best possible to ment revenues will continue to in- fident that we will yet pass the bal- nursing home residents. crease. However, in contrast to the 1993 anced budget amendment during the It reduces the frequency of required Budget Reconciliation Act which en- 104th Congress. inspections of nursing homes from acted the largest tax increase in his- every year to every 2 years unless the With or without a constitutional tory, the balanced budget act will let facility has been found to have sub- amendment, this balanced budget act American families keep more of what standard care; eliminates the require- proves that the Congress can enact a they earn. ment for comprehensive training for budget which protects the health and Let me emphasize, Mr. President, State and Federal surveyors; removes safety of our Nation, provides quality this bill provides tax relief for the mid- requirement that resident assessments Government services, and eliminates dle class. Over four-fifths of the tax re- be conducted using a national uniform harmful deficits. ductions of this proposal will go to data set in order to monitor patient This is a refreshing contrast to the those making under $100,000; nearly outcomes and consistency in patient unbalanced budgets proposed by the two-thirds go to those making under care; relaxes protections against unfair President. His budgets contain no plan $75,000. Furthermore, after considering transfers and discharge of nursing to balance the budget, significantly in- all the reforms of the earned income home residents; reduces some mini- crease the national debt, fail to re- tax credit, the marriage penalty, and mum training and staffing require- strain growth in nondefense Govern- the child tax credit, working families ments for nursing homes—including ment spending, and propose dangerous with children will see their taxes de- elimination of 75 hours of training for reductions in national defense spend- crease next year. nurse aides and the requirement that ing. Mr. President, such budgets are The centerpiece of the revenue provi- facilities with more than 120 beds em- not acceptable alternatives. sion is the family tax credit, offering a ploy a qualified social worker. The Balanced Budget Act of 1996 re- $500 per child tax credit, for children Also, it reduces the frequency of verses direction on those policies which under the age of 18. This credit is mandated Federal validation surveys are stifling our economy and burdening phased out for individuals with ad- on 5 per cent every year to 5 per cent all Americans with an overwhelming justed gross income over $75,000, or for every 3 years; removes requirement di- national debt. It puts the Nation on married couples with an income over recting surveyors to reduce the time track to reduce Government spending, $110,000. In my State of South Carolina, between identification of standards eliminate annual deficits, and permits this means that over 400,000 tax returns violations and the final imposition of us to begin to reduce the national debt, will be eligible to claim this credit, at remedies; eliminates language calling which is now nearly $5 trillion. a value of over $320 million. This is for incrementally more severe fines for First, this bill controls the growth money directly in the hands of parents repeated or uncorrected deficiencies; rate of Government spending. Federal to spend for their priorities—child reduces maximum civil monetary pen- spending continues to increase over the care, housing, and education—not sent alty imposed on nursing homes that 7-year budget period, from $1.5 trillion to Washington to fund its bloated bu- are out of compliance from $10,000 to in 1995 to nearly $1.9 trillion in fiscal reaucracy. $5,000; and eliminates language requir- year 2002. However, this spending Other provisions provide direct relief ing retroactive civil monetary pen- growth is at a slower, more affordable to America’s families, including a $5000 alties for past noncompliance. rate, and below the growth rate of Fed- adoption tax credit; marriage penalty November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17311 relief; and a credit for student loan in- frame of Reconciliation. The commit- I will have more to say about this terest. tee was faced with a Herculean task of leasing program, but for the moment I The bill also contains revenue provi- finding other options to achieve the simply want to say that I sincerely sions which will increase savings and savings scored to our committee. The hope that the President would stop lis- investment. The expansion of the indi- magnitude of the task is best illus- tening to the ideological fanatics that vidual retirement account will permit trated by a comment from one of the prowl the White House and the Federal more Americans to save more money staff on the Budget Committee that if agencies and examine the realities of for their retirement years. The capital they had known of other options, we this leasing program. This Nation is gains reduction will unlock existing would have been scored with them as once again over 50 percent dependent capital assets, allowing capital to be well. on foreign oil supplies. That doesn’t reinvested. This will result in more As I stated, the committee has met seem to bother the President, but it jobs, higher wages, more benefits, and and exceeded its instructions. I want to should. The President should reexam- a more vibrant economy. express my appreciation to our ranking ine his position on this issue. His oppo- Let me address the argument that Minority Member, Senator JOHNSTON, sition is wrong from the standpoint of the capital gains tax cut will go pri- for his cooperation and the assistance our energy security, it is wrong from marily to the rich. A study by the U.S. from his staff in helping us. Our com- the standpoint of the economy, it is Treasury showed that nearly one-half mittee has always prided itself on its wrong from the standpoint of the envi- of all capital gains were realized by bipartisan professional approach to ronment, it is wrong from a budget taxpayers with wage and salary income legislation, and that is demonstrated standpoint, it is wrong from the stand- of less than $50,000. Three-fourths of all in our product. point of domestic employment, it is returns with capital gains in 1995 are The conference agreement includes wrong from the standpoint of our re- estimated to be reported by taxpayers the sale of certain lands in California sponsibilities for Native Alaskans—his with wage and salary income of $50,000 contained in the House measure as well opposition is simply wrong. or less. Mr. President, let me reempha- as the sale of the helium reserves con- The conference agreement also in- size this point—capital gains tax relief tained in both the Senate and the cludes various reclamation and water will benefit all Americans. House. provisions. The agreement retains the Mr. President, there are many other The agreement also contains the Senate language repealing a prohibi- important and favorable provisions in leasing authority for the Coastal Plain tion in current law that prevents irri- the balanced budget act. The act re- in Alaska that was contained in both gation districts from prepaying their forms welfare by emphasizing work and the Senate and House versions and outstanding debt. The legislation also responsibility. It preserves, protects which was a specific assumption in our provides for the transfer of the and improves Medicare. It protects vet- instructions. The conferees made sev- Collbran Project in Colorado, and Sen- erans’ benefits and safeguards afford- eral minor changes to make the pro- ator CAMPBELL deserves the credit for able education. gram work more efficiently and re- working out the problems with that Mr. President, I support the Balanced solved uncertainties in allotments due provision. The agreement also includes Budget Act of 1995. I vote ‘‘yes’’ for re- Alaskan natives within the Coastal a modification to the Raker Act that ducing the deficit; I vote ‘‘yes’’ for con- Plain. I know that some opponents of would increase the payment by San trolling the growth of Government the program have suggested that the Francisco for the use of a portion of spending; I vote ‘‘yes’’ for our families Federal Government will never see the Yosemite National Park from $30,000 to by reducing their tax burden; I vote revenues estimated from leasing on the $2 million. The charge has not been ‘‘yes’’ for restoring the economic fu- Coastal Plain due to the provision in changed in over half a century. The ture of our Nation. Therefore, I will the Mineral Leasing Act made by the House had set the charge at $8 million vote ‘‘yes’’ for this bill and encourage Alaska Statehood Act that provides 90 while the Senate had adopted a for- my colleagues to do likewise. I yield percent of all revenues to the State. mula used by FERC with a floor of the floor. The statement of managers is explicit $597,000. The Agreement also includes Mr. MURKOWSKI. Mr. President. on this subject. We are not in any man- two provisions of the House version— The Committee on Energy and Natural ner altering the provisions in the Alas- the transfer of Sly Park and authoriza- Resources met and exceeded its targets ka Statehood Act nor the Mineral tion for prepayment of Central Utah for the conference. I want to express Leasing Act. Those provisions continue Project debt—with minor modifica- my appreciation to Chairman YOUNG of to apply in Alaska outside the Coastal tions. the House Resources Committee and to Plain. When Congress set aside the After considerable discussion with Chairman BLILEY of the House Com- Coastal Plain, it reserved to itself the the House, we also were able to come merce Committee for their coopera- decision on whether the area should be to agreement on amendments dealing tion, and the hard work of their staff, opened to leasing or not, and if so, with Federal oil and gas royalties and that enabled us to conclude our nego- under what terms and conditions. hardrock mining. The reforms will in- tiations quickly and in an amicable The decision has been that the area crease Federal receipts and provide a fashion. should be leased, but that it should be fair and workable system that will in- When the President submitted his leased under very specific conditions crease collections from oil and gas op- budget earlier this year, he proposed to tailored to the unique characteristics erations and completely reform the sell the Power Marketing Administra- of the Coastal Plain. Suggestions that federal hardrock mining program. I tions, except for Bonneville, to the development will have adverse environ- fully understand that the provisions present customers at the discounted mental effects are wrong and the result dealing with hardrock mining will not value of the repayment obligations. of either misinformation, misunder- satisfy those whose prime motivation That proposal was not particularly standing, or deliberate is the elimination of any domestic well thought out as our hearings in mischaracterization. Our committee mining industry, but that was not our committee demonstrated. Nonetheless, has spent several years crafting very objective. The provisions of the Con- the revenue assumptions underlying specific language to ensure that devel- ference Agreement recognize private that sale became part of the target and opment will occur in an environ- property rights, provide for fair market instructions given to our committee. mentally sensitive manner, and that value with a reverter for patents, and While the members of our committee language is incorporated in the con- impose a royalty on future production. recognize that serious attention needs ference agreement. In developing a sep- The conference agreement includes to be given to the future of the PMA’s, arate leasing program for the Coastal the Senate provisions dealing with pri- especially in light of declining budgets Plain, the committee decided to adopt vatization of Department of the Inte- for the agencies that currently manage a 50–50 revenue sharing formula. The rior aircraft services, with certain the generating and marketing of power conference language is absolutely clear modifications as well as the sale of the from Federal facilities, we also are in that the program set forth is the sole Alaska Power Administration, refi- agreement that responsible solutions authority for the leasing program, not nancing of the Bonneville Power Ad- are simply not possible within the time the Mineral Leasing Act. ministration, export of Alaska oil, and S 17312 CONGRESSIONAL RECORD — SENATE November 17, 1995 OCS deepwater royalty relief, all of tributions. I want to acknowledge to the Constitution. The critics, the de- which were included in the conference Karen Hunsicker, who shepherded the fenders of the status quo cried out, agreement on S. 295 which both the conference wit the House Commerce ‘‘Where’s your plan?’’ Well, at least for Senate and House have approved and committee to an early and successful those of us on this side of the aisle, the President supports. conclusion, especially on the U.S. En- here’s our plan. After considerable work, the con- richment Corporation and DOE asset With passage today of the Balanced ferees were able to agree on provisions sales. David Garman did outstanding Budget Act, the first Republican Con- dealing with ski area permits, National work on the US Enrichment Corpora- gress in 40 years is on the verge of pass- Park Service concessions, and recre- tion and Andrew Lundquist has labored ing a detailed plan to balance the Fed- ation fees at areas administered by the long and hard on both the Alaska ex- eral budget by the year 2002—for the National Park Service, Bureau of Land port provisions and the leasing pro- first time since 1969 and only the sec- Management, and the Forest Service. gram for the Coastal Plain of the Arc- ond time since 1960. In fact, a majority We were able to retain the Senate pro- tic Refuge. Michael Flannigan made of all Americans living today have seen vision that would return 80 percent of the hardrock mining negotiations as the Government balance its books only all new receipts to the collecting agen- exciting as possible and kept a degree once or never. However, the President cy for direct use for visitor services of uncertainty up to the very last mo- has threatened a veto and the debate and facilities. ment. Kayci Cook, the Committee’s has been heated and, often, confusing The conferees also agreed to the lan- Bevinetto Fellow, demonstrated com- or misleading. The following informa- guage that markedly improves the cli- petence, patience, and professional tion should help folks construct the mate for the privatization of the U.S. judgment in working on concessions true picture of the current debate and Enrichment Corporation. We also in- and park fees. what’s at stake. cluded language providing for the dis- Finally, I want to express my appre- Democrats say Republicans in Con- posal of surplus property by the De- ciation to the senior staff of the Com- gress want to slash spending. But total partment of Energy and for the lease of mittee—Gregg Renkes, our Staff Direc- spending under the Balanced Budget excess storage capacity within the tor, Gary Ellsworth, our Chief Counsel, Plan will go from $1.5 trillion in 1995 to Strategic Petroleum Reserve. As a re- and Jim Beirne, our Senior Counsel. almost $1.9 trillion in 2002—a 22 percent sult of problems at the Weeks Island Not only have they handled individual increase. Under the status quo, spending would site, the reserves need to be drawn portions of the package with their go to $2.1 trillion in 2002—almost a 40 down and relocated. The conferees usual professional expertise, but they agreed that 32 million barrels of the re- percent increase. have also had the pleasure of dealing The Democrats say the Republican serve should be sold, but that 50 per- with the Budget Committee, the Con- budget is all pain, no gain. But real cent of the revenues from the lease of gressional Budget Office, the Par- people will enjoy real benefits from excess capacity should be made avail- liamentarian, Legislative Counsel, and balancing the budget by 2002 under the able for additional purchases to com- their House counterparts, as well as Republican plan. Because of lower in- plete the reserve beginning in 2002. various Senators and staff. They han- Mr. President, none of this could terest rates, a typical family would dled the floor procedures, and made save $2,388 a year on a $75,000 mortgage; have been accomplished without long certain that all the members of the $1,026 over the life of a 4-year, $15,000 hours and hard work by the profes- committee were covered, and are re- car loan; and $1,891 over the life of a 10- sional staff of the committee. I want to sponsible for the successful completion year, $11,000 student loan. express my appreciation to them. How- of the conference. Balancing the budget means more in- ard Useem worked on the Alaska Mr. CRAIG. Mr. President, yesterday, vestment, more economic growth, and Power Administration sale and the on his birthday, a young member of my 2.5 million new jobs by 2002. By 2020, Bonneville refinancing as well as the staff went to the dentist for a root this growth means our children would Strategic Petroleum Reserve language. canal. He understood that long-term have a 7 percent to 36 percent higher Brian Malnak worked on the Interior health and comfort was more than standard of living. asset sales, Mike Poling worked on the worth the short-term discomfort. In contrast: The Concord Coalition oil and gas royalty and OCS provisions, Ironically, the same day, I received a estimates that Federal debts and defi- and Jim O’Toole worked on the Na- fax from a concerned taxpayer who cits already have lowered the average tional Park Service fees and conces- pointed out that a dentist’s ‘‘polling family’s income by $15,000 a year. The sions language. Jonathan Schneeweiss numbers’’ aren’t too good while the President’s 1995 budget estimated that made major contributions in trying to cavity is being drilled. But once the future generations face a lifetime tax keep our provisions straight, and I cavity is filled, ‘‘the horrible toothache rate of 82 percent at all levels, under want to especially express my grati- is gone forever—and the patient is current trends in the public debt. The tude to the support staff, Camille grateful.’’ status quo is the least tolerable course. Heninger, Betty Nevitt, Jo Meuse, For many of us in Congress, for Gov- President Clinton says he has sub- Kelly Fischer, Judy Brown, Julia Gus- ernment employees, for many Idaho- mitted a balanced budget. Not accord- tafson, and Gerry Gentry—who really ans, and for many folks watching us ing to the nonpartisan, objective Con- did all the work. around the Nation, the current budget gressional Budget Office, which said I also want to thank the minority impasse may be producing a feeling the ‘‘10-year balanced budget plan’’ he staff who demonstrated the high level like that of hearing the dentist’s drill. offered this summer actually would of professional commitment that has So, it’s important for us to remember produce $200 billion deficits a year always characterized our staff. During why we’re here, what’s at stake here, throughout the next decade. By his the last reconciliation measure, they and why we are fighting so hard to pass own admission, the budget the Presi- sought to involve us and we tried to be a balanced budget. dent first proposed in February would helpful. We are grateful for their as- $200 billion annual deficits, a $5 tril- have produced similar $200 billion defi- sistance this time around. Ben Cooper, lion debt, are more than a toothache— cits. In both cases, he used unrealistic Tom Williams, David Brooks, Shirley they are a cancer on the economy and economic assumptions. Neff, Bob Simon and Cliff Sikora all threaten the living standards and eco- Democrats say the Congressional made important contributions. I espe- nomic security of every American. budget plan will drastically reduce cially want to thank Sam Fowler for This would be the first balanced Medicare protection for the elderly. his assistance and ready recourse to budget since 1969 and only the second But, if we do nothing, Medicare will humour during tense moments. In addi- since 1960. It’s sobering to remember run a deficit in the coming year for the tion to his overall responsibilities for that a majority of Americans living first time ever, and its trust funds will the entire package, his work on the today have seen the Government bal- be completely drained of their accumu- U.S. Enrichment Corporation was in- ance its books either once or never. lated reserve by 2002. The official Medi- valuable. Back at the beginning of this year, care Trustees—including three of Although all the staff performed we got 66 of the 67 votes we needed to President Clinton’s own Cabinet Sec- well, some made extraordinary con- pass the Balanced Budget Amendment retaries—have said so. November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17313 The balanced budget plan will extend families earning more than $18,000 a future generations of Americans. This the financial solvency of Medicare at net tax cut. Other reforms target is not hyperbole or overstatement. least until 2009, protecting seniors. fraud, which would cost $37 billion over This is not hype or hoorah! Without Budget savings would come from in- the next 5 years under current law. The the action we take today, our grand- creasing consumer choice and making only actual benefit reductions would children, and their children, face a fu- the system more efficient. Even after affect childless taxpayers (who, before ture of bankruptcy, hyperinflation, and savings, Medicare spending per bene- 1993, were never eligible for the EITC), financial and fiscal chaos. By taking ficiary would increase from $4,800 in illegal aliens, tax cheats, and affluent some relatively painless steps today— 1995 to $6,700 in 2002—a 40-percent in- taxpayers (who never should have re- and, please, let’s be honest on this crease. ceived EITC benefits). point: the savings we will approve Democrats say Republicans want to Democrats say Republicans want to today are relatively painless when you cut Medicare to pay for tax cuts. But, cut benefits to the poor and needy. But consider the magnitude of the deficit the same magnitude of reforms are Medicaid (health care insurance for the and debt confronting us—we deflect necessary to save and preserve Medi- needy) spending in the Balanced Budg- away that otherwise certain, and care, no matter what happens with the et Act would go from $89 billion in 1995 bleak, future. rest of the budget. The Balanced Budg- to $127 billion in 2002—a 43-percent in- The savings measures we will ap- et Act includes a lockbox provision crease. proved today are relatively painless— making it illegal to use Medicare funds Mr. President, here is some rhetoric so much so that it is amazing, and so for other purposes. versus the truth. regrettable, that we have waited so Democrats say the Republican plan Mr. SIMPSON. Mr. President, what long to act. To illustrate, let me out- won’t really balance the budget—it will an extraordinary and remarkable day. line for you what the Committee on look like it by raiding the Social Secu- We are all somewhat weary—and, yes, Veterans Affairs—the Committee I am rity trust funds. But, the balanced greatly frustrated—from events of the honored to Chair—has approved. I budget plan will balance the unified past few days. But we should not let think you will agree that the route to budget (including Social Security sur- our fatigue—or our frustration from a balanced budget that the Veterans pluses in the total) by 2002. It will bal- dealing with politicos at the other end Committee was able to reach imposes ance the budget without counting So- of Pennsylvania Avenue—diminish the no great hardship on the Nation’s vet- cial Security by 2005. The Government importance of the moment. erans. will remain under a legal obligation to At the close of this debate, we will be Title X of the bill—entitled ‘‘Veter- pay out to Social Security bene- privileged to vote on a budget which— ans and Related Provisions’’—defines ficiaries every dollar ever deposited get this, for the very first time in my what veterans must contribute to help into the Social Security trust funds, 17 years here—actually balances the us achieve a balanced budget. The with interest. budget on a date certain. No more measures we have approved can be The growing national debt is the real smoke and mirrors! No tricks. No more viewed in three clusters: threat to Social Security and every accept short term expedients now— First, we would reenact a number of other important Government program. with the understanding that necessary money saving provisions that have pre- We already are paying $300 billion in trimming will follow later. We have fi- viously been approved in prior Omnibus interest every year on that debt—about nally learned better; finally, we do un- Budget Reconciliation Acts— one-fifth of it going to foreigners— derstand. And, finally, we are actually We would continue, for example, to which crowds out other budget prior- going to do it! We are going to balance require that some, but only some, veter- ities. this budget! A good day! ans pay small per diems for hospital Democrats say the Congressional Everyone in this chamber knows my and outpatient care, and small added budget is full of tax cuts for the rich. views on the subject of a balanced co-payments for prescription medica- But, every time someone suggests cut- budget. Everyone knows that I passion- tions dispensed for the treatment of ting taxes for everyone, liberal dema- ately believe that the one way—the non-service-connected disabilities; vet- gogues make it sound like the rich are only way—to get to a balanced budget erans with profound service-connected getting a special deal. It just ain’t so in is to gain control over this so-called disabilities, and low income veterans, the balanced budget plan. entitlement spending. That’s a belief would continue to be exempted. Almost three-quarters of the tax borne of very careful study—study We would continue, with respect to package in the budget goes for family which Senator BOB KERRY and I under- VA-treated veterans who have health tax relief, including a $500 per-child took in service on the Entitlement Re- insurance, to authorize VA to collect credit, adoption credit, marriage pen- form Commission. fees from those insurance carriers for alty relief, a deduction for custodial But the view that we must gain con- non-service-connected treatment. care for the elderly, and a student loan trol over entitlement spending in order We would continue to allow VA to interest deduction. Savings and invest- to balance the budget is not merely a ‘‘verify,’’ through access to IRS and ment incentives will boost the entire belief. At this point, I think all Sen- Social Security records, the incomes of economy, create jobs, and guarantee ators might agree that, as a matter of veterans who apply for means-tested that small businesses and family farms absolute fact, entitlement spending re- VA benefits. won’t have to be sold at the owner’s form is the only way we can get from We would continue to limit means- death just to pay taxes. Closing cor- here to there. The fact that all now tested VA payments to veterans who porate loopholes will raise $18 billion seem to agree on that point—and on are in Medicaid-financed nursing home in revenues over the next 7 years. the point that we must stop borrowing care while still assuring completely Democrats say the Republican budg- indefinitely from future generations— that the real benefit paid to, and re- et raises taxes on lower-income people. shows how far we, and the American tained by, the veteran is not dimin- This accusation is a misrepresentation people, have come in just a few years. ished. about the Earned Income Tax Credit I wish this consensus might have ar- We would continue to require that [EITC]. The EITC is the fastest-grow- rived sooner, but I’m surely pleased it veterans who receive the benefits of VA ing item in the budget. It is part tax is here now. mortgage loan guarantees pay reason- credit and part spending program for In light of the relative consensus on able fees. lower-income workers. In his 1993 budg- the ‘‘big picture,’’ and in view of the Finally, we would continue to allow et, President Clinton drastically ex- limited time available for us to debate VA to take reasonable steps to mini- panded who’s eligible and the amount this historic Balanced Budget Act, I mize its losses when the home loans it of benefits. will not talk long on the overarching guarantees go into default. The Balanced Budget Act would pre- issues. But I will say this: we are tak- These provisions, as a group, would serve currently-scheduled EITC in- ing an action today which comes closer allow VA to save $2.799 billion over the creases for needy families with chil- than anything we could ever do—short next 7 years. 2.799 billion bucks simply dren. Coordinating the EITC with the of voting on a war resolution—to deter- from extending the effect of provisions $500 per-child credit will still give EITC mining the day-to-day quality of life of that have previously been enacted. S 17314 CONGRESSIONAL RECORD — SENATE November 17, 1995 These provisions, I daresay, would not Montgomery GI bill is named. My re- tain widows of veterans who died in harm veterans. spect, admiration, and regard for service or later from conditions related I can say, Mr. President, that no vet- SONNY MONTGOMERY—who will retire to their service. This diminished COLA eran would be harmed by these meas- after the 104th Congress and who will is directly contrary to a promise made ures based on our experience on the be deeply missed by all—impelled me by the Congress in 1992 when the survi- Veterans Committee. For what is left to recommend that the Senate con- vors benefit program was revised, and unsaid in the context of continuing ferees recede to the House view on this should not be agreed to. I oppose it previously-approved OBRA provisions matter if we could ‘‘make up the dif- strongly. It is wrongheaded and mean is as important as what is said. The ference’’ in other ways. We did. spirited. There were other ways to find OBRA provisions that we would extend In place of the Montgomery GI bill the savings required. today are ones which experience has al- provisions, the conferees accepted two The package includes a 100-percent ready shown are relatively painless to House-approved provisions which, col- increase in the amount poor veterans the Nation’s veterans and which have, lectively, will save almost the full nec- are charged for a 30-day supply of pre- therefore, achieved good bipartisan essary $1 billion. First, we would raise scription drugs, raising the amount to consensus within the Veterans Com- the prescription $4 from the current $2. Our Committee mittee. They are even accepted by the * * * * * avoided increasing this copayment. Nations’s veterans service organiza- Mr. President, those who hear these The House Committee had voted a $1 tions—organizations that are not al- comments may infer that I am not increase, to $3. The increase in the bill ways easily pleased, I would remind! fully pleased with each and every as- is an even greater increase than origi- Provisions in prior Budget Reconcili- pect of the veterans’ provisions in this nally passed the House. It is being in- ation Acts that were more controver- bill. If they infer that, they will be cor- cluded in this package because of the sial—for example, a provision setting a rect. I particularly regret the provision Chairmen’s agreement to accept a ceiling on benefits paid to an incom- relating to survivors’ COLAs—though I higher overall savings target for our petent veteran who has no dependents do not think it is patently unfair. It is Committees than is set forth in the and whose assets exceed $25,000—are regrettable, but not unfair. As we all Budget Resolution. not in the package before the Senate know, however, rarely is a given piece The bill expressly repeals the Sec- today. of legislation pleasing in all respects. retary’s existing authority to waive Second, this package of veterans-re- This legislation is, however, almost veterans’ indebtedness in connection lated measures would adopt two new without precedent in its importance. with receiving prescription drugs. provisions that are relatively non-con- And it is not—it is not—unfair to the Under current law, the Secretary can troversial, but which are highly signifi- Nation’s veterans, or to their widows, waive this and other indebtedness. cant in terms of the savings to be orphans or families. No—veterans, However, in an action designed to gen- gained. their widows, and their families will erate even more savings from poor vet- Title X would reimpose a common benefit, as will all Americans, from erans, the waiver authority as to veter- sense legal standard for compensation deficit control—and from the jobs, low ans who have received prescription to VA patients who are injured in VA interest rates, low inflation, and future drugs will be repealed. Frankly, I am hospitals. What standard would we im- prosperity which hinge on deficit con- not at all sure what is intended by this pose? The very same standard which trol. change but if I understand it, the only applies, insofar as we have been able to We are doing no less today than try- way to enforce the no-waiver authority determine, at every other hospital in ing to save this great country as we will be to refuse to provide prescrip- America. We would require that a pa- know it. We veterans fought for that tions to veterans who previously re- tient show that any harm that was vis- very cause. I know all veterans will ceived medications but were unable to ited upon him or her in a VA hospital join now—as we all did when we were pay for them. That strikes me as a par- was the result of VA fault. Recovery called to arms—in defense of the Na- ticularly unfortunate change in law would be allowed only if that fault tion, and to assure peace, prosperity, and policy. could be shown. and stability for our children and The final compromise includes a pro- In addition, we would require VA to grandchildren. vision that would repeal a protection ‘‘round down’’ the compensation and Mr. President, I appreciate the time I in current law for veterans who are survivors’ benefits which are adjusted have been afforded to address these found by VA to owe money in connec- annually to account for increases in critical issues, and I yield back the bal- tion with a home loan default, even a the cost of living. What do I mean by ance of my time. default that occurs years after the vet- this? Traditionally, when VA recom- VETERANS’ RECONCILIATION: MORE THAN THEIR eran has sold the home to a buyer who puted benefits amounts—which are FAIR SHARE then defaults on the loan, a not uncom- paid in whole dollar amounts—it Mr. ROCKEFELLER. Mr. President, I mon event. Under current law, a vet- rounded up when the recomputed bene- oppose the provisions of title 10 of the eran who is found by VA to owe money fit equaled a fractional dollar amount conference report—relating to veter- in connection with a loan default is of 50 cents or more, and it ‘‘rounded ans’ programs—because they are a bad protected from having his or her in- down’’ when that amount was 49 cents deal for veterans. These provisions come tax offset or federal pay gar- or less. The bill before the Senate were crafted behind closed doors. They nished until VA gets a court decision today would require that VA ‘‘round must be brought out into the light of affirming the indebtedness. The final down’’ in all cases. day so that the public can understand compromise will include a House- * * * * * just how bad they are. passed provision that substitutes sim- I approved of these provisions—cham- First, the overall amount saved is ple notice to the veteran for this pro- pioned by my friend, Senator JAY too high. The two Veterans’ Affairs tection. ROCKEFELLER, the committee’s ranking chairmen accepted, with no action by Mr. President, I must note my deep member—when they were before the either body, an increase of $300 million disappointment that the House refused committee. They were then—and they over the seven years in the overall sav- to consider any changes in Montgom- are now—wholly reasonable mecha- ings that the Veterans’ Affairs Com- ery GI bill issues as part of our effort nisms for saving almost $1 billion over mittees generated, from $6.4 billion to to find the mandated savings. The Sen- a 7-year period. Indeed, in my view, $6.7 billion. There is no reason that our ate package achieved savings in two they are preferable to the alternative Committees should have done this. ways from the MGIB—by providing for measures adopted by the House. This increase translates directly into a one-half COLA over the seven years But they simply were not acceptable more cuts in veterans’ benefits. I re- and by increasing the contribution to the chairman of the House Veterans’ gret very much that there was a will- that servicemembers make who do not Affairs Committee, Congressman BOB ingness to make veterans do more than opt out of the MGIB. The House’s re- STUMP, or to the ranking member of their fair share. fusal to achieve savings from healthy, that committee, Congressman G.V. The provisions provide less than a employed recruits and students, at the ‘‘SONNY’’ MONTGOMERY, for whom the full cost-of-living adjustment to cer- expense of widows of veterans who died November 17, 1995 CONGRESSIONAL RECORD — SENATE S 17315 from service-related causes, and of vet- Mr. PRESSLER. Why do middle- plan to double penalties for fraudulent EITC erans needing prescription drugs, is class, working Americans want us to claims is justified. simply not acceptable to me. I do not cut spending and provide tax relief? But because the EITC program is, in effect, a reward for people who work rather than understand their priorities. The reason is obvious. The Federal rely on welfare assistance, the budget pro- Finally, Mr. President, as I noted at Government wastes billions of their posals should be scaled back so as not to af- the outset, this compromise was craft- tax dollars every year on more and fect the people the EITC is intended to help. ed behind closed doors. I was denied more programs that do less and less to Of course, these changes in tax credits and any opportunity to participate in the meet the needs of average Americans. tax rates would increase the complexity of a conference. I asked for a public meet- Working Americans are paying more federal tax code that is already too com- ing of the sub-conference on a number and more for less and less. Now we plicated. We should really be going in the op- posite direction, toward a simpler tax code. of occasions in order to give us the op- have the opportunity to cut taxes and And on the other side of the budget propos- portunity to discuss the differences be- in the process make government more als, the decreases in proposed spending, there tween the House and Senate provisions efficient and effective, smaller and is room to argue whether the decreases are in a public forum. The only response I smarter. It is time to give the Amer- targeted fairly. received was an invitation to a private ican people what they want—a bal- But the tax breaks included in Republican meeting in Senator SIMPSON’s office anced budget, an end to wasteful spend- budget proposals aren’t as hideous as they’ve after the final agreement had been been made out to be. ing, and a reduction of taxes for wage- A lot of hard-working, middle-income reached. That’s just not good enough. earning, middle-class working families. Americans would benefit. The American people deserve better. EXHIBIT 1 f America’s veterans deserve better. We WIDE APPEAL IN TAX BREAKS should conduct our business in the THE 7-YEAR BALANCED BUDGET THE TAX BREAKS INCLUDED IN CONGRESSIONAL open, not behind closed doors. This BUDGET PROPOSALS WILL BENEFIT MIDDLE-IN- RECONCILIATION ACT OF 1995— package was developed with no input COME AMERICANS MOST CONFERENCE REPORT whatsoever from Senate Democrats. In the great budget debate of 1995, congres- The PRESIDING OFFICER. The That is not how our Committee has sional Democrats and President Clinton have Chair announces that the Senate has functioned in the past. I regret that we continually argued that Republicans are received the conference report from the are now taking that approach. targeting the poor and elderly with spending House, and the clerk will now state the Mr. President, this package is a bad cuts to pay for tax breaks for the wealthy. report. deal for veterans. It cuts too deeply Hmmm. Tax breaks for the wealthy? The assisted legislative clerk read as There are flaws in this argument. and in wrong areas. As the Ranking follows: Democrat on the Veterans’ Affairs For one thing, the $500-per-child tax credit under the expected budget compromise The committee on conference on the dis- Committee, I see my role as looking would go to families with incomes under agreeing votes of the two Houses on the out for our Nation’s veterans, as mak- about $100,000. That means the wealthiest amendment of the Senate to the bill (H.R. ing certain that our promises made to Americans—those with taxable incomes over 2491) to provide for reconciliation pursuant those who gave of themselves in our $100,000—wouldn’t qualify for it. And it to section 105 of the concurrent resolution on common defense are kept. This pack- means most families that pay taxes would the budget for fiscal year 1996, having met, age does not do that. That is why I pay lower taxes. after full and free conference, have agreed to must oppose it. A second tax break included in both the recommend and do recommend to their re- House and Senate budget bills would reduce spective Houses this report, signed by a ma- f the top capital gains tax rate from 28 percent jority of the conferees. CUT TAXES: BALANCE THE to 19.8 percent. Although this tax break Thereupon, the Senate proceeded to BUDGET would result in wealthy taxpayers paying a consider the conference report. lower rate, it could very well mean their (The conference report is printed in Mr. PRESSLER. Mr. President, the total tax bills would be higher. The lower tax the House proceedings of the RECORD of American people want and deserve an rate likely would motivate sales of invest- November 16, 1995.) end to shameless, wasteful spending ment assets that otherwise wouldn’t be sold and thus wouldn’t generate any tax revenue. The PRESIDING OFFICER. The Sen- programs. They want a reduction in ator from Nebraska. taxes for working middle-class families Plus, the increased economic activity that a lower capital gains tax rate would generate POINT OF ORDER and a balanced budget so we finally would result in increased capital for job-cre- Mr. EXON. Mr. President, I raise a live within our means—as people in my ating small businesses and a healthier econ- point of order that the sections des- home state of South Dakota do every omy that produces more tax revenue. ignated on the list that I now send to day. I feel passionately that we must Besides, a cut in the capital gains tax rate the desk violate the Byrd rule, sections give the dream of America back to our doesn’t apply only to wealthy individuals. It 313(b)(1)(A) and (D) of the Congres- children. That is why I support the applies to everyone who increases their tax- able income by selling a home or some other sional Budget Act. Balanced Budget Act of 1995. The list follows: The working men and women in investment. In today’s economy, that takes America are fed up with politics as in a lot of people. One study showed that in 1990, when the top capital gains tax rate was EXTRANEOUS PROVISIONS IN H.R. 2491 usual in Washington. They have spoken lowered from 33 percent to its current 28 per- loudly that they want us to cut waste- Subtitle and Budget act vio- cent, 70 percent of the tax returns reporting section Subject lation Explanation ful spending, reduce taxes for working capital gains were from people with taxable middle-class families, and finally bal- incomes below $75,000. Subtitle M Sec. Exemption of phy- 313(b)(1)(A) .... No deficit impact 13301. sician office ance the budget. The Republicans in So, while it may be correct that House and laboratories. Congress have heard this call for Senate budget proposals include some bene- Sec. 1853(f) of Application of 313(b)(1)(A) .... No deficit impact fit for the wealthy, it’s the middle income the Social antitrust rule 313(b)(1)(D) .... Merely incidental change. We, too, are tired of business Security Act of reason to as usual. That is why we have proposed taxpayers that benefit most. as added by provider-spon- On the other side of the budget’s impact on Section 8001 sored organiza- tax relief for working, middle-class taxpayers are proposed reductions in the of the bill. tion. Americans so they can keep more of Earned Income Tax Credit, a tax break for what they earn, rather than leave it in workers with low incomes. The House bill Mr. ABRAHAM. Mr. President, pur- the hands of Washington bureaucrats. proposes decreasing planned EITC spending suant to section 904 of the Congres- Recently, an editorial in the Rapid by $23 billion over the next seven years, sional Budget Act, I move to waive the City Journal praised the current Re- while the Senate bill proposes $43 billion. point of order for consideration of the publican tax plan. This editorial is Some of this reduction is justified. EITC antitrust provisions that have been right on target. Mr. President, I ask eligibility requirements need to be tightened raised in this point of order. unanimous consent to place this edi- so people with low taxable incomes but high The PRESIDING OFFICER. Under nontaxable incomes, from sources such as the Budget Act, there is now debate on torial in the RECORD at the conclusion tax-free annuities, don’t qualify. And in a of my remarks. program with a high rate of fraud—the Inter- the motion. Who yields time? The Sen- The PRESIDING OFFICER. Without nal Revenue Service estimates up to 40 per- ator from New Mexico. objection, it is so ordered. cent of the tax returns claiming the EITC Mr. DOMENICI. On behalf of the ma- (See exhibit 1.) contain errors or fraudulent claims—the jority leader, I ask unanimous consent