As fiscal year 1998 comes to a close,
Congress and the President have considerable work to do to reach an
agreement on most of the 13 annual appropriations bills. In light
of this, on September 17, 1998, Congress passed a continuing
resolution (CR) that allows the federal government to continue to
operate until October 9, 1998 (FY 1999), at FY 1998 spending
levels.
Nevertheless, before September 1, the
President had threatened to veto at least seven of the
appropriations bills; specifically, the bills authorizing the
Departments of Commerce, State, and Justice (H.R. 4276); the
District of Columbia (H.R. 4380); the Interior (H.R. 4193); Labor,
Health and Human Services, and Education (H.R. 4274); Treasury and
Postal (H.R. 4104); Veterans Affairs and Housing and Urban
Development (H.R. 4194); and Defense (H.R. 4103). More recently, he
also has threatened to veto the Foreign Operations appropriations
bill (H.R. 4569). His threats are raising concerns and speculation
about whether any impasse on these bills will trigger a government
shutdown.
A
closer look at President Clinton's veto threats for each bill
suggests that the Administration is willing to bring the federal
government to a standstill--and interrupt Social Security checks
and Medicare and veterans' benefits, close national parks, and
jeopardize national security--for a negligible difference in
discretionary spending. As Table 1 illustrates,
the House proposes to spend $2.6 billion less than the President,
which in the end is a difference of about 1.0 percent relative to
what the President is requesting for FY 1999. In threatening to
veto these appropriations bills, the President is both attempting
to protect a bloated and unaccountable federal bureaucracy and
breaking the balanced budget agreement he made with Congress last
year. Moreover, the additional spending he requests will take money
away from achieving his own goal of setting aside the entire
surplus to strengthen Social Security.

In the 1997 balanced budget agreement, the
President agreed to $259 billion in non-defense discretionary
spending authority for fiscal year (FY) 1999. Now, according to the
Congressional Budget Office, the President is threatening to veto
appropriations bills, bust budget caps agreed to for FY 1999 in the
budget agreement, and close parts of the government in order to
spend $8.5 billion above what was agreed to last year. Even worse,
a review of recent reports from the federal government's own
watchdogs--the U.S. General Accounting Office (GAO) and the
agencies' own inspectors general (IGs)--strongly suggests that the
President is willing to close down the government over the issue of
increased funding for programs that have long and troubled
histories of waste, mismanagement, and little or no accountability
to the public and taxpayers.
Congress, on the other hand, is trying to
rein in the uncontrolled spending of some agencies and programs. In
doing so, the U.S. House of Representatives in particular hopes to
impress on federal bureaucrats that they must do a much better job
of being held accountable to both Congress and the American public
for how they spend taxpayer dollars. The evidence is mounting that
greater leadership and discipline are needed to address federal
agencies' spending habits. But the President is making a difficult
job even more difficult.
For
example, the debut of federal agencies' five-year strategic plans
and FY 1999 annual performance plans as required by the Government
Performance and Results Act was embarrassing. The GAO and others
have characterized the plans as a torrent of questionable missions,
goals, objectives, faulty performance measures, and clear evidence
of waste and duplication.
A
balanced budget is not a license to waste tax dollars even if the
budget stays balanced. The GAO and IG reports evaluating agencies
and programs in six of the seven appropriations bills targeted for
vetoes by the President demonstrate that many do not deserve more
money at the same time audits show they waste much, accomplish
little, or may actually do more harm than good. Rather than engage
in political posturing, the President should concentrate on the far
more important and challenging task of leading the federal
government. He should demand that his executive branch agencies be
less wasteful and more accountable. Taking such bold steps would do
far more to reform and save Social Security, Medicare, and other
important programs.
Angela Antonelli is former Director of the
Thomas A. Roe Institute for Economic Policy Studies at The Heritage
Foundation.