CE Week #3: “Under-the-radar spending” & “President’s budget is an outrage”
Bush’s order too late to impede most earmarking by Congress
Sacramento Bee
February 6, 2008
The following editorial appeared Sunday in the Sacramento Bee.
In his State of the Union address, President Bush promised “unprecedented” reform of congressional earmarking. That’s the practice through which members of Congress sneak in pork-barrel spending projects that have never received a hearing, never been debated and are not in the text of a bill.
Bush has signed an executive order instructing federal agencies to ignore all earmarks that are not in the text of a law. That’s fine; Congress should debate these projects in the open and hold a public vote. But this effort comes a little late in his presidency. It was also more than a bit lame, considering that it won’t take effect until October 2009, months after he leaves office.
Earmarking is hardly new, but the real problems with the practice were ushered in by House Majority Leader Tom DeLay, R-Texas, after Republicans took control of the House in 1994. According to the Congressional Research Service, earmarks that year totaled 4,100. By 2000, they had risen to 6,100.
But it was during the Bush era, with Congress and the presidency in the hands of one party, that earmarks really got out of hand. By 2002, earmarks totaled 10,500, rising to a record 15,500 by 2006, more than tripling since 1994.
What changed? In addition to the traditional practice of steering earmarks to home districts, members of Congress targeted projects to out-of-district lobbyists and private firms that contributed to their political campaigns.
Rep. John Doolittle, R-Calif., is an example. After San Diego defense contractor Brent Wilkes organized fundraisers and contributions, Doolittle helped win $37 million in earmarks from 2002 to 2005 for Wilkes’ firm for technology the Defense Department hadn’t requested. This had no benefit for constituents of Doolittle’s district.
In some cases, this practice edged into bribery. Former Rep. Randy “Duke” Cunningham, R-Calif., was convicted of taking $2.4 million in bribes from defense contractors in exchange for inserting earmarks into bills.
When Democrats won the House majority in 2006, they promised reform. They eliminated about 10,000 earmarks that had been proposed by the previous Congress for the 2007 budget. But that welcome change is proving short-lived. While earmarks dipped to 2,700 in 2007, they’re getting out of hand again – rising to 11,700 for the 2008 budget year. And Democrats are using loopholes to flout the spirit of new rules that are supposed to require earmarks to be in appropriation bills and open to challenge on the floor.
It is lack of public scrutiny and debate that allows stealth spending projects to divert money from real budget priorities to low-priority earmarks. The public will have to demand that Congress reverse this return to business as usual. Bush’s action comes too late to have much effect.
President’s budget is an outrage
Froma Harrop
The Providence Journal
February 6, 2008
President Bush’s budget will top $3 trillion. It envisions massive deficits for fiscal years 2008 and 2009 – nearly matching the record in 2004, when the federal budget went $412 billion into the hole.
The average American might properly ask, “Shouldn’t we at least have something to show for all this?” Even the basics are missing – for example, health coverage for all children, a serious effort against global warming, bridges that don’t fall down. Where has the money gone?
David Cay Johnston provides some answers in his angry and brilliant book, “Free Lunch.” An ace investigative reporter, Johnston explains: “From those leaves in the park to textbooks to highway bridge maintenance to food safety inspections, money is dwindling because so much has been diverted to the already rich through giveaways, tax breaks and a host of subsidies that range from the explicit to the deeply hidden.”
These diversions started in the Reagan years, according to Johnston, and Democrats have played their part. But the massive transfer of national wealth to the tippy-top became religion under Bush.
Johnston recalls Bush’s famous remarks to a white-tie crowd at the Waldorf-Astoria during his 2000 campaign. Referring to his audience as the “haves and have-mores,” he said “some people call you the elite. I call you my base.”
Bush gave the “base” some very big tax cuts in 2001 and 2003. The cuts were supposed to boost the economy and probably helped, but they never generated enough revenue to pay for themselves. When higher collections helped lower the 2005 and 2006 deficits, the administration credited tax-cutting magic. Most economists disagreed, citing an upswing in the business cycle, bolstered by a housing bubble.
And contrary to conservative legend, the Bush “reforms” did not raise the overall income tax burden of the very rich. The administration cleverly claims that the share paid by the top 40 percent is higher than it was in 2000 – which is true. It neglects to add that families at the tiny pinnacle – the top tenth of 1 percent (who made at least $1.7 million in 2005) – have seen their tax burdens decline significantly. In 2005, this group of 300,000 men, women and children made nearly as much money as all 150 million Americans in the lower half.
So the high earners below this super-elite accounted for the entire heavier burden of the top 40 percent. These are the members of the upper middle class – the doctors, lawyers and businesspeople who have to work for their money.
As Johnston brutally documents, the free-market posturing of the Bush administration is a total sham. The government has become the enricher of the already rich, not the other way around.
For the connected, government gives away public land at deep discounts. It jiggers the tax code to make moving factories to China more profitable. It undoes safety regulations that subtract from the bottom line. It weakens consumer protections, letting financial institutions prey on the unsophisticated and the not-very-bright. In fine-print legislation, it shifts risk from corporate managers onto investors and makes the taxpayer cover mistakes. There’s a reason why the number of registered lobbyists in Washington has more than doubled to 35,000 since Bush took office.
The rising cost of Medicare is troubling and must be addressed. But isn’t it interesting that Bush sees this middle-class entitlement as the budgetary outrage that needs his immediate attention? His budget would make deep cuts in the Centers for Disease Control and Prevention – and eliminate a $301 million program that trains pediatricians at children’s teaching hospitals.
That’s stuff for the ordinary folks. The have-mores will do just fine.