Congress Wrangles Over Hurricane Funds
EDWARD LEE PITTS
CHATTANOOGA TIMES FREE PRESS
OCTOBER 16, 2005
WASHINGTON - Tennessee and
Georgia lawmakers are debating whether to slash specific programs or make
across-the-board budget cuts to pay for about $200 billion in Hurricane
Katrina recovery. Sen. Lamar Alexander, R-Tenn., who is on the Budget
Committee, said members are trying to come up with $50 billion to $100
billion in spending reductions over the next five years.
"We are looking at the entire budget and attempting to spread the spending
restraints in a balanced way," Sen. Alexander said. "I would like to avoid
across-the-board cuts because some programs are more important for our
country's future than others, for example, investments in science and
technology."
Sen. Johnny Isakson, R-Ga., said he favors an across-the-board cut on all nondefense spending.
"I think it would be far easier to accomplish than to attack programs one at
a time," Sen. Isakson said.
The debate reflects lawmakers' uncertainty about how to tighten the federal
budget belt to compensate for unexpected hurricane costs, according to
Capitol Hill observers.
Jennifer Duffy, editor of the Cook Political Report, a nonpartisan, online
analysis of politics, said the Katrina spending issue has opened a fissure
among Republican leaders in Washington.
"The leadership doesn't know where they want to go on this," she said. "Do
they have enough political capital to cut programs?" Just before Congress
started its recess last week, lawmakers began discussing a 2 percent
across-the-board cut to the $843 billion discretionary spending portion of
the fiscal 2006 budget. The talks came after President Bush asked Congress
for additional cuts to pay for Katrina. U.S. Rep. Harold Ford, D-Tenn.,
said the Bush administration is telling Congress to make cuts for Katrina
without giving specific guidance on what types of cuts. Rep. Ford said this
would allow the Bush administration to blame Congress if it fails to come up
with a viable plan.
Sen. Saxby Chambliss, R-Ga., the chairman of the Senate Agriculture
Committee, said committee members already have achieved $3 billion in
deficit savings from the $100 billion agriculture spending bill.
"Going back and cutting some more would be very tough," he said. "I hope we could look at where we can best achieve these savings instead of across-the-board cuts.
"Trying to offset all dollar costs of Katrina is going to be just about
impossible," he said. Senate Majority Leader Bill Frist, R-Tenn., sent a
letter before the recess to all Senate committee chairmen asking them to
find ways the federal government can manage the costs of both Hurricanes
Katrina and Rita.
"At this point, he remains open to discussing all options," said Sen. Frist
spokesman Matt Lehigh. Sen. Chambliss said some federal programs or
agencies could afford deeper spending reductions than others. He said some
lawmakers are eyeing reductions in highway projects in the $286.4 billion
transportation spending bill passed by Congress this summer.
But John Horsley, executive director of the American Association of State
Highway and Transportation Officials, said that seems unlikely to happen.
Cutting transportation funds would hurt the very Gulf Coast states that need
that money to rebuild, he said. "I don't think you're going to see
Congress reverse itself and take back what they just passed by law," he
said.
Stan Collender, a Washington consultant who is a former Democratic staffer for the House and Senate Budget Committees, said there have been lots of discussions but no real serious talks on what needs to be trimmed or eliminated to pay for Katrina. He said he doubts real spending cuts for Katrina will be achieved, leading to higher deficits.
"Every program has an extreme supporter somewhere in Congress saying, 'My
programs are too important,'" said Mr. Collender. "They are going to borrow
it. Our kids and grandchildren are going to pay for it." U.S. Rep. John
Duncan, R-Tenn., said he'd first cut some of the billions of dollars
Washington sends to other countries each year, including foreign aid dollars
out of the Defense Department's budget.
"It may shock you, but there are ways even in the Defense Department to make
cuts," he said. "The first obligation of the U.S. Congress is to the
American people."
Rep. Duncan said one way to help reduce spending cuts stress is to halt
Katrina spending. He said he is not going to vote for any more dollars to
the Gulf Coast until he is sure money is not being wasted.
"There is a pretty strong feeling across the country that we have been
spending too much money too fast down there," Rep. Duncan said.
Some lawmakers are pleading for fiscal responsibility while others say the natural disaster needs to be fully funded no matter the effect on the federal budget deficit, Ms. Duffy said. To protect themselves politically, lawmakers are refraining from talking about the specific cuts they may or may not support until they know what leadership favors, she said.
Mr. Collender said some of the Katrina costs could become permanent as the
government looks to provide FEMA and the Defense Department with resources
to handle future natural disasters. And corporations, such as the insurance
industry, left crippled by their own Katrina expenses also would be looking
to Congress for bailouts in the coming years, he said. Staff writer
Ashley Rowland contributed to this report.
