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National Journal's CongressDaily
Issue date: October 29, 2001 -=-=-=-=-=-=-=- BUDGET Administration Says FY01 Surplus $30B Less Than Anticipated The Bush administration today said the total surplus for FY01 is $127 billion, more than $30 billion less than predicted just weeks ago and less than half the estimate made when the administration released its budget this spring. Expectations for the surplus plummeted as the economy stalled this year and worsened further in the wake of the Sept. 11 terrorist attacks. "Circumstances have changed radically," OMB Director Daniels acknowledged in a statement today. "We must make sure that this is not the last surplus by limiting additional spending to purposes directly related to the nation's battle against terrorism." The FY2000 surplus was $237 billion, making the FY01 surplus the second largest on record. The April OMB budget estimate for the FY01 surplus was $281 billion. The administration's mid- session review surplus forecast late this summer was for $158 billion. At that time, the administration forecast receipts of $2.013 trillion and outlays of $1.855 trillion. Actual FY01 receipts were $1.99 trillion and outlays were $1.863 trillion. The administration also announced it had paid down $90 billion in publicly held debt during FY01. The $127 billion FY01 surplus includes a $12 billion reduction in anticipated spectrum auction recoveries. For comparison, in its most recent budget analysis, released Sept. 26, CBO projected the FY01 budget surplus would be $121 billion, down from the $153 billion it had projected in the mid- session review that came out in late August. In May, CBO had expected a far larger FY01 surplus of $275 billion. - by Keith Koffler and Lisa Caruso -=-=-=-=-=-=-=- TRANSPORTATION Bush Still Resistant To Federalization Of Airport Security The White House said today it continues to support allowing airport screeners to remain private workers with increased federal supervision, backing away from a statement White House Chief of Staff Card made over the weekend saying President Bush probably would sign legislation that fully federalizes the workers if it came to his desk in that form. "That may or may not be the case," White House Press Secretary Ari Fleischer said today, when asked about Card's statement. Fleischer said it was "premature" to speculate on whether Bush would veto legislation federalizing airport workers. "The president continues to believe that the best way to guarantee safety is through a more flexible system, where not everyone is on the federal payroll," Fleischer said. Bush continues to back legislation by House Transportation and Infrastructure Chairman Young that provides federal standards for airport workers but does not require that all become federal employees. Card told NBC's "Meet the Press" Sunday that if Bush received a bill federalizing airport security workers: "I suspect that he wouldn't want to sign it but he would. He wants airline security." House Democrats appeared bolstered by Card's comments and are hoping for a win on a Democratic substitute that would federalize workers when the Young bill comes up for a floor vote Wednesday. "This shows that the White House position against [making baggage screeners] federal employees is rather soft," said a spokesman for House Transportation and Infrastructure ranking member James Oberstar, D-Minn. Oberstar has introduced an alternative to Young's bill that would federalize workers like the Senate bill, but place them under the Transportation Department. The Senate bill places much of the oversight with the Justice Department. Democratic aides said that Democrats are likely to offer the Senate bill in order to move the legislation quickly. The Young bill goes before the Rules Committee Tuesday. - by Keith Koffler and April Fulton -=-=-=-=-=-=-=- FINANCE House May Not Accept Senate Terrorism Insurance Plan House members may be playing catch up on federal terrorism insurance this week after an agreement was reached late Friday between key senators lawmakers and the Bush administration on the bill's rough outline. Senate Banking Committee members are expected this week to introduce the legislation which would have the insurance industry financing the first $10 billion in payments following a future terrorist attack. After that, taxpayers would foot somewhere between 70 percent and 90 percent of the costs. Meanwhile, members of the House Financial Services Committee, who have been a more difficult sell, are still in the discovery phase of the process. But in striking a deal with such influential and ideologically disparate members as Senate Banking Chairman Sarbanes, ranking member Phil Gramm, R-Texas, and Sen. Christopher Dodd, D-Conn., the White House may have found a way to effectively circumvent a House debate, sources said. "I don't see how and where the House plays into that mix," one observer said. At the same time, the observer added, "consideration needs to be given to [House Financial Services] Chairman Oxley and probably some of the Democrats ... they shouldn't be cut out of the picture." House members were prepared to "dig in" on the subject with a roundtable discussion organized for Wednesday by Financial Services Capital Markets Subcommittee Chairman Richard Baker, R- La. Criticism and caution about a federal terrorism insurance backstop has been most pronounced and most bipartisan among members of the House committee. Baker has been especially vocal about the need to ensure the industry does not get something for nothing, while Democrats raised the specter that federal dollars would open the door for federal regulation of the insurance industry. "I think in general there's an appreciation of what the Senate's put together so far," a Baker spokesman said today. However, the House roundtable "should be taking up several other questions House members have," the spokesman added. "While the Senate proposal looks like a good start for the short-term question ... the final legislative package may need to go a bit further," specifically in addressing whether there is going to be any repayment by the industry once it finds its footing, he said. An Oxley spokeswoman added, "Our concerns remain the same as they were last week. I think we want to stand firm in defense of the taxpayer," and in a way that "encourages the private sector to provide as much terrorism coverage as possible." Sources said they believe the final Senate bill could include modest language, probably crafted by Sen. Jon Corzine, D-N.J., requiring some repayment from the insurance industry in return for federal aid. Corzine's staff could not be reached for comment. As for the substance of the Senate-White House proposal, Frank Torres of Consumers' Union said the details remain to be seen. "We're encouraged that the first dollar losses are going to be picked up by the industry," Torres said. However, he added, the Senate plan calls for a $10 billion threshold that sounds low to him, given that the industry has some $300 billion in reserves. Moreover, "We understand the legitimate need for some [federal] assurances, but it is turning out to be a subsidy," Torres said. "Nobody's talked about the impact of insurance rates on taxpayers. The government will be there to help out, but why can't we have it in some form of loan guarantee? We think the House folks are asking all the right questions," Torres added. As for the position of House Republican leaders, "Our sense ... is that they do not want a big bailout," Baker's spokesman said. Leadership wants the bill to "be something free market conservatives can feel proud about," he said. - by Pamela Barnett -=-=-=-=-=-=-=- TRADE English Predicts Congress Will Restore Trade Authority Rep. Phil English, R-Pa., a member of the House Ways and Means Committee, predicted that the restoration of presidential trade negotiating authority will be voted on and probably approved by the House "in the next few weeks." He added that it is "reasonable" that the president will have the authority again by the end of the year. Speaking at a forum on trade sponsored by the U.S. Chamber of Commerce, English endorsed a measure to renew trade authority authored by Ways and Means Chairman Thomas. He said the Thomas bill was "the strongest one I have seen since I've been in Congress" with regard to promoting higher labor and environmental standards and also preserving the consultative role of Congress. The Thomas bill borrows heavily from a free trade agreement concluded recently between the United States and Jordan. English emphasized that the Thomas bill calls on countries to "be on the record as being willing to enforce their standards." English said Thomas' bill gives the United States flexibility to negotiate trade pacts based on the particular circumstance of various countries. Meanwhile, President Bush today announced the creation of a $200 million Overseas Private Investment Corporation support facility to provide U.S. corporations access to loans, guarantees and political risk insurance for investment projects in Sub- Saharan Africa. Speaking to a forum on the African Growth and Opportunity Act - a free trade agreement between the United States and African nations - Bush said the United States would also establish a regional office in Johannesburg, South Africa, to coordinate trade issues between the United States and Africa. The president also announced $15 million in seed funding to launch the Trade for African Development and Enterprise Program, which will establish regional hubs to help African businesses take advantage of the African Growth and Opportunity Act. - by Stephen Norton and Keith Koffler -=-=-=-=-=-=-=- AGRICULTURE Dorgan Pushes For Farm Bill Approval By Year's End Sen. Byron Dorgan, D-N.D., told CongressDaily Friday that if the Senate Agriculture Committee does not soon succeed in sending a farm bill to the floor, Senate Majority Leader Daschle could bring up the House-passed bill for amendment. Dorgan said he was not "suggesting" that Daschle bring up the bill because he believes the "responsible" thing for the Senate Agriculture Committee to do is come to an agreement on it. However, Dorgan said he so strongly believes Congress should pass the farm bill this year that he did not rule out that option. Dorgan, who does not sit on the Senate Agriculture Committee, appear to signal the frustration non-committee Democrats feel toward the Senate Agriculture Committee's lack of progress on the bill. One Capitol Hill source working on the bill said Democrats are "splintered" in trying to satisfy Democrats from different regions. The source said Senate Agriculture Chairman Harkin's staff is circulating his concept paper - which he may publicly release this week, the source said - among other Democratic committee members while quietly sounding out Republican staffers who work for Republican Senate Agriculture Committee members other than Senate Agriculture ranking member Richard Lugar, R-Ind., who has released his own proposal with dramatic farm program changes. When the House sent its farm bill to the Senate, Daschle did not assign it to a committee, which left him the option of bringing it up on the Senate floor. Daschle staffers have said the majority leader wants the Senate Agriculture Committee to write a bill that is better than the House bill, but they also left the option of bringing up the House bill and amending it. One problem with the House farm bill, Dorgan said, is that it does not treat wheat farmers well, but he called it a "step forward" compared to current law. On Friday, Dorgan wrote Harkin and Lugar saying they should finish the bill this year and pointed out how, in his view, the House bill "shortchanges" wheat and barley growers. Dorgan said his letter reflected meetings he held last week with both Daschle and Harkin. Meanwhile, the National Association of Wheat Growers Friday issued a new call for completion of the farm bill this year saying the uncertainty is causing problems for winter wheat farmers who are planting crops now. "Our agriculture lenders are increasingly nervous about committing themselves to farm loans in light of an uncertain farm policy environment. We need these loans now for the operating capital on our 2002 crop," NAWG Chief Executive Officer Daren Coppock said. In what appeared to be a response to Dorgan's letter, corn, soybean and livestock groups wrote Daschle saying they were so satisfied with the Bush administration's promises of funding that action could wait until next year. But cotton and rice growers and the American Farm Bureau Federation and the National Farmers Union declined to sign the letter to Daschle and are still pushing for the bill this year. - by Jerry Hagstrom -=-=-=-=-=-=-=- AGRICULTURE Administration Backs Away From Lugar Farm Plan The Bush administration is distancing itself from the farm bill proposed by Senate Agriculture ranking member Richard Lugar, R-Ind. Although there are "many similarities" between the Bush administration's recently issued farm policy guidelines and Lugar's proposal on food stamps and other nutrition programs, Agriculture Undersecretary for Nutrition and Consumer Services Eric Bost told CongressDaily Friday, "This is the first inning of a nine inning ball game." When Lugar issued his farm bill on Oct. 18 he said he had the "full" backing of the administration, with Agriculture Secretary Veneman even issuing a statement that praised his proposal. But the Lugar proposal has not won support from any major farm groups and rumors continue swirling that farm groups told White House officials they were offended by its support of the Lugar proposal. Bost told the Associated Press the administration supports Lugar's plan to restore food stamp benefits to legal immigrants who have been in the country for five years or worked for four years. Bost said Friday that the "40 quarters of work" requirement for food stamp eligibility "is something that we feel comfortable supporting. However, we are continuing to work at it. We don't want to say that is where the administration is." Bost then dismissed those who would pigeon-hole him on the issue. "Reporters want to box me in [on] the issue. We are continuing to look at additional options" for food stamp eligibility. Bost said. "The options could be narrower or broader." Bost also pointed out the administration is continuing to discuss the nutrition title of any new farm bill with congressional leaders and OMB, and noted that last week he offered assistance in writing the nutrition title. Bost said he "doesn't have an opinion" at the present time about making the Women's, Infants' and Children's program mandatory, rather than discretionary funding - another issue raised in the USDA policy book. - by Jerry Hagstrom -=-=-=-=-=-=-=- CONGRESSIONAL OPERATIONS House Awaits Remediation Results On Longworth, Ford Although the search for anthrax contamination continued to hamper normal House operations today, officials are nearing the end of their efforts to detect and destroy any harmful bacteria. The Longworth and Ford House office buildings, where anthrax has been detected, remain closed; but a spokesman for House Administration Chairman Ney said health officials have completed remediation and are waiting on test results to confirm that any trace of anthrax has been destroyed. The Ney spokesman said that tunnels connecting the Capitol and the Rayburn and Cannon House offices buildings have been reopened, but entrances to Longworth are blocked off and sealed. Anthrax was discovered Friday in the Longworth offices of Reps. John Baldacci, D-Maine, Rush Holt, D- N.J., and Mike Pence, R-Ind. A conference call for chiefs of staff and district directors of legislators with Longworth offices is scheduled for this afternoon. Meanwhile, Senate aides said leaders have still not decided what method to employ in order to eliminate anthrax from the Hart Senate Office Building, as health officials from various federal agencies advise congressional officials. EPA Administrator Whitman had been invited to brief senators today about cleanup efforts in the Capitol complex, but the event was cancelled. The Hart building remains closed, as staff who work in the building make preparations for what could be a prolonged dislocation. - by Mark Wegner and Geoff Earle -=-=-=-=-=-=-=- JUDICIARY Court To Decide On Federal Authority Over Drug Mixing The Supreme Court today agreed to decide if the government can regulate the mixing of drugs at local pharmacies. The Bush administration had urged the court to take the case, arguing there were serious health implications in allowing unregulated drug-mixing. The government has wide inspection authority over drugmakers in their plants, but this case involves pharmacies that dilute or alter prescription drugs to make them easier to consume or for use by a child or someone with allergies. Congress changed guidelines for compounding in 1997, and the government was sued in Nevada by pharmacies that frequently mix drugs. The FDA contends it can regulate companies that advertise mixing services or have sales personnel. The court also rejected a constitutional challenge to congressional salary increases dating back a decade. Justices refused to reinstate a lawsuit filed by Rep. Bob Schaffer, R- Colo., seeking to block yearly cost-of-living adjustments for Congress. The latest increase, earlier this month, bumped up congressional salaries to about $150,000. Schaffer contends the increases violate the 27th Amendment, which forbids members of congress from increasing their salary during their term. Congress can block the adjustments, which it has done five times in the last eight years, the court was told. The court also agreed today to hear the case of a man who wanted an oil refinery job his own doctor said could kill him, the Associated Press reported. Mario Echazabal sued Chevron Corp. under the Americans With Disabilities Act, claiming he should have gotten the job despite a chronic case of hepatitis C. Doctors who examined Echazabal said exposure to chemicals at the refinery would speed the deterioration of Echazabal's liver, and that a large exposure from a plant fire or other emergency could kill him. Chevron appealed to the Supreme Court, arguing that Echazabal's medical condition puts him outside the protection of the Americans With Disabilities Act. The federal anti-bias law mandates equal treatment for qualified workers, no matter their disability. A court decision in the case could help clarify what duty an employer has to potential employees with disabilities. -=-=-=-=-=-=-=- POLITICS White House To Consider Proposals Designed To Limit Liability An administration official Friday confirmed reports that the White House will consider proposals designed to limit the liability of businesses affected by the Sept. 11 terrorist attacks. Owners and architects of buildings destroyed by the attacks, manufacturers of airplane components and others could be sued as a result of the attacks. "We are open to proposals that would treat all companies that would be sued similarly to each other," the administration official said. The White House believes that such proposals would be fair since caps on claims against one industry - the airlines - are already in place, and lawsuits that would have been directed at air carriers may now end up in the lap of other businesses. The White House also believes that protection for other industries is needed to prevent some businesses from entering into bankruptcy and thereby "ensure plaintiffs could recover damages." If a deal with Congress is reached on the issue, the White House would be open to adding the initiative onto legislation helping "reinsurers" provide coverage to insurance companies writing policies protecting businesses against future terrorist attacks, the official added. -=-=-=-=-=-=-=- POLITICS Cook To Run As A Republican Former Rep. Merrill Cook, R-Utah, has decided to run as a Republican for the seat he lost last year, satisfying Republicans who feared his plan to campaign as an independent would split the GOP vote, the Associated Press reported. Cook, in announcing his change of heart Saturday, said he did not want to be blamed for possibly helping Democratic Rep. Jim Matheson win a second term. "I don't want to be called a spoiler. I want to carry on with the important issues," Cook said. Cook said he was inspired to run again after comments Tuesday by National Republican Congressional Committee Chairman Tom Davis of Virginia, who said he hoped Cook would not run and that a Republican should win the redrawn 2nd District "if we can find a decent candidate." Cook was enraged by Davis' comments and then issued his threat to run as an independent. But Cook said he spoke with Davis on the phone later in the week and was assured that Davis would stop saying negative things about him and show neutrality in the Utah Republican Party's nominating process. -=-=-=-=-=-=-=- ATTACK UPDATE U.S. warplanes hit an area of caves and tunnels in eastern Afghanistan today known as a hideout of Osama bin Laden, killing two people, Reuters reported. Frustrated at weeks of U.S. bombing that have failed to budge Taliban front lines, Afghanistan's opposition forces plotted what they said today would be a major push on a vital Taliban-held northern stronghold, the Associated Press reported. To bring it off, a spokesman of the Northern Alliance stressed, "We will need American help." Afghan opposition forces are complaining increasingly that U.S. bombing to date is too light to drive out Taliban forces defending Kabul and the northern city of Mazar-e-Sharif. U.S. strategy has focused on selective strikes on Taliban positions and those of bin Laden's al-Qaida network, rather than mass bombing. Meanwhile, Sen. Phil Gramm, R-Texas, said Saturday death is the only justice for anyone found responsible for aiding the Sept. 11 terrorist attacks. "I'm interested in hunting down these people and bringing them to justice, and that's killing them," he told a GOP leadership training seminar in Dallas. Gramm, who is retiring at the end of his current term, praised the leadership of Bush, who has said he wants bin Laden "dead or alive." Gramm offered his own homespun directive: "We have an old Texas Rangers principle that if you ride with thieves, you die with thieves. The modern incantation is if you ride with terrorists, you die with terrorists." -=-=-=-=-=-=-=- THE FINAL WORD "[They] would have to be living in a cave not to know." - White House Homeland Security Chief Tom Ridge, speaking last week while saying that terrorists "seriously misjudged" the U.S. public by thinking they could break the public's spirit with terrorist attacks. -=-=-=-=-=-=-=- CongressDaily is published daily, Monday through Friday, by National Journal Group Inc. Copyright 2001 by National Journal Inc., 1501 M St., NW, #300, Washington, D.C. 20005. Retransmission, redistribution or reproduction of CongressDaily is prohibited without the express, written permission of National Journal Group Inc. To read CongressDaily on the Web, contact 1-800-207-8001 or njcirc@njdc.com for your username and password. President--John Fox Sullivan, 202-739-8468 (jsullivan@njdc.com) Publisher--Steve Hull, 202-739-8475 (shull@njdc.com) Editor--Louis Peck, 202-739-8481 (lpeck@njdc.com) Executive Editor--Keith White Senior Managing Editor/A.M. Edition--Robert Ourlian Senior Editor--Charlie Mitchell Associate Editor--Greta Wodele Assistant Editor--Chuck Jordan Reporters--Pamela Barnett, Lisa Caruso, Geoff Earle, Keith Koffler, Brody Mullins, Stephen J. Norton, Mark Wegner Special Correspondents--Jerry Hagstrom, Julie Rovner Subscription price: $2,497 a year. Subscription and e-mail transmission information: 202-266-7230 (cngdaily@njdc.com). -=-=-=-=-=-=-=- CDENDIT
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