Voinovich to Vote NO on Final Porkulus

Release:

WASHINGTON, D.C. – U.S. Senator George V. Voinovich (R-OH) will vote today against the conference report of the non-stimulative Democratic “compromise” bill. The $789 billion spending package will add more than $1.1 trillion to the national debt over 10 years when interest is included. The Congressional Budget Office projects that this bill will push the deficits for 2009, 2010 and 2011 to well-over a trillion dollars on average. Because of this, the conference report raises the debt limit to an astounding $12.1 trillion compared to today’s already staggering debt of $9.85 trillion. When Sen. Voinovich came to the Senate in 1999, the debt was at $5.6 trillion – less than half of what it is soon to become.

“I sympathize with Americans who are hurting and understand that our economy needs a shot in the arm,” Sen. Voinovich said. “I worked towards and was prepared to support a package that put people back to work, injected needed capital into our economy and provided a safety net for families who the recession hit the hardest. I will vote against this bill because it is weighed down by too much spending that is not stimulative and will not provide the jump-start our economy so desperately needs. Instead of funding federal responsibilities that are shovel-ready, like highways, sewers and housing, which would put people back to work quickly and the results of which would contribute to our nation’s economic growth, this bill is filled with items that should be funded through the regular appropriations process and compete with other federal priorities in President Obama’s budget request. Our nation is facing a catastrophic debt and this bill simply adds to that debt without fulfilling the well-accepted stimulus criteria that the funds be timely, targeted and temporary. I am disappointed the conference committee did not do the work the American people asked them to do: ensure that each and every dollar in this bill is focused on creating jobs, jump-starting the economy and responding to the human needs brought about by the deep recession our country is experiencing.”

Sen. Voinovich worked closely with a group of Senate Republicans who hoped to forge a bipartisan compromise with the Democrats. This group identified roughly $300 billion in spending that arguably does not belong in this bill. These programs generally fall into two categories: those that are worthy federal programs but should compete with other federal priorities in the regular budget process; and those that are not even a federal responsibility at all. Some of the least justifiable funding includes:

· $53.6 billion for the State Stabilization Fund: Many on both sides of the aisle refer to this as the “slush fund”. Given the large amount of money we are pumping into state budgets through the increase in the federal matching rate for Medicaid – which Sen. Voinovich supports – it is unclear why we need a second, duplicative method of filling holes in state budgets. And, Sen. Voinovich is disturbed by a carve-out for K-12 public school construction, which has never been a responsibility of the federal government.

· $10 billion for the National Institutes of Health (NIH): NIH research is critical to our nation’s long-term prosperity, and Sen. Voinovich believes it should be adequately funded, but it belongs in the regular appropriations process.

· $1 billion for wellness and prevention programs: Sen. Voinovich believes these programs are worthy of being funded in the regular appropriations process, and over the long-run could reduce health care costs. But, these programs will not stimulate our economy in the short-run.

In addition, the Republican group at the negotiating table believed that the legislation failed to devote adequate resources to programs that truly would stimulate the economy and create jobs. They advocated for significantly higher spending in certain areas. For example:

· The group would have provided somewhere between $40 billion and $54 billion for highways. The American Association of State Highway and Transportation Officials say there are $64 billion projects that are “ready to go.” Ready-to-go highway construction provides one of the most effective means for stimulating the economy and creating jobs, and the $27.5 billion included in the conference report is less than half of the amount that could be injected into the economy quickly. State Transportation Director Jolene Molitoris has identified $2.7 billion in “shovel-ready” highway projects in the state. If highways had been funded at Sen. Voinovich’s requested level, the state would be receiving nearly that much instead of the $900 million it is slated to receive. This would have gone a long way towards tackling all the “shovel-ready” highway projects in Ohio.

· The group also would have provided between $17 billion and $25 billion for the Clean Water and Drinking Water State Revolving Loan Funds. EPA unfunded mandates are requiring water and sewer districts to raise rates to fund infrastructure improvements, driving out businesses and imposing even greater hardship on already struggling families. These projects are already underway or will be shortly, and the $6 billion for the entire country included in the conference report is inadequate for the task. Ohio ranks as having one of the largest wastewater treatment collection needs at $11.7 billion. Of that amount, EPA has identified almost $6.3 billion in improvements necessary to address CSO problems in over 100 communities throughout Ohio alone. This is resulting in astronomical utility rate increases throughout the state. The city of Fremont, for example, is facing a 150 percent rate increase. This unfunded mandate is simply unacceptable.

· Based on information we received from the Armed Services Committee, the group included $16.6 billion for national defense, including $4.1 billion for replacing and modernizing equipment being used in Iraq and Afghanistan – spending for which the manufacturing capacity is available and ready to go. In fact, The conference report only provides $4.6 billion for national defense – $12 billion less than their proposal – and nothing for replacing and modernizing equipment being used in Iraq and Afghanistan.

· The conference report includes only $2 billion for the Neighborhood Stabilization Program, which struggling communities use to help stabilize home values. Sen. Voinovich had hoped it would include at least the $2.25 billion in the original Senate Appropriations Committee bill.

The legislation does include funding for several programs that serve immediate human needs during the current crisis. Sen. Voinovich supported inclusion of this funding, as it both stimulates the economy and prevents those families struggling the most from falling through the cracks. This funding includes:

$87 billion for an increase in the federal matching rate for the federal-state Medicaid program. Only $11 billion would be required to prevent a reduction in Medicaid coverage, but the draft on which Sen. Voinovich’s group was working would have provided this higher amount to give states and governors flexibility in their budgets so that Medicaid funds could be shifted to prevent cuts in jobs, education and services in other programs. With this higher amount, there is little justification for the extra state slush funds that the conference report contains. According to the Urban Institute, the FMAP increase in the stimulus bill exceeds enrollment-driven growth in state Medicaid programs related to the economic downturn (around $11 over two years). The extra money would help states take the heat off other expenditures. Ohio will receive approximately $3 billion in additional federal matching funds under Medicaid which, according to the Urban Institute, is above the cost for the expected growth in the Medicaid program.

· $12.2 billion for helping states comply with the mandates imposed by the Individuals with Disabilities Education Act (IDEA) which were unfunded mandates. This funding will help eliminate pressure on school boards across Ohio.

· Roughly $40 billion for extension and modernization of unemployment insurance.

· Nearly $20 billion for food stamps.