Shortly after the attacks of 9/11, New York's other liberal
Democratic senator, Chuck Schumer, predicted confidently that: "The
next few years will. . . closely resemble the mid-1930s, when
federal power dramatically increased. "Americans, he argued, are
"willing to cede more authority and dollars to Washington." Schumer
theorized that conservative leaders in Congress would initially
resist, but eventually "will be fighting an increasingly desperate
rear-guard action" against the return of big government.
Schumer has to be credited with a certain prescience. Three years
later, the federal government is larger not only in dollar terms
but also as a percentage of the economy. Surprisingly, however, it
is some conservatives who have mounted that "rear-guard action"
envisioned by Schumer.
New York Times columnist David Brooks hypothesized: "Just as
socialism will no longer be the guiding goal for the left, reducing
the size of government cannot be the governing philosophy for the
next generation of conservatives." Echoing Brooks, conservative
economist Bruce Bartlett sounded a reluctant call for appeasement
in the Los Angeles Times and Fortune magazine. "There is no longer
any hope," Bartlett complained, "of holding the line on government
growth." Given that the U.S. is moving inexorably toward European
levels of spending, he believes that ultimately "we will have to
tax like them too." Congress and the presidential candidates, he
says, should be "debating how best to raise revenues rather than
pretending the issue can be avoided." That a spirited supply-sider
such as Bartlett has reached this point of despair is a wake-up
call for all conservatives.
Is the return to big government really inevitable? There is no
better time to assess than now, as Congress does its annual budget
work.
Sadly, even the President's modest goal to freeze domestic
spending at last year's level may prove too daunting a challenge in
this election year. This shortcoming flows mostly from the Senate's
insatiable appetite for spending, and its willingness to use budget
chicanery to accomplish its big-government goals. Two
examples:
- Big spenders typically exploit the budgetary rule that allows
Congress to exempt "emergency" spending from approved spending caps
by designating routine spending items as emergencies. This year,
Senate appropriators freed up an additional $1.2 billion in funding
for agencies such as the Environmental Protection Agency by
designating entirely predictable veterans' medical care as
"emergency spending." (To their credit, House appropriators opted
instead to reduce spending in other programs by 2%.)
With a second bill to assist with hurricane-related costs in Florida and elsewhere moving forward this week, members have begun adding their pet projects to this speeding legislative train. Citrus growers are lobbying to include economic recovery aid, Western farmers want drought assistance, and sundry others are looking to hitch a ride on this "must pass" bill.
- Another trick is to move spending from one fiscal year to
another. Senate appropriators led by Arlen Specter (R.-Pa.) and Tom
Harkin (D.-Iowa) intend to exploit this loophole and boost spending
on education and medical research by shifting $3.2 billion in
payments to the low-income elderly and disabled to Fiscal Year
2006.
Proponents of big government misuse the end-of-the-year appropriations process in other ways as well. Here again are two examples:
- Last year, the Bush Administration issued a rule that would
permit it to shift as many as 425,000 federal jobs to the private
sector, double the current level. Under enormous pressure from
federal employee unions, Sen. Barbara Mikulski (D.-Md.) has won
Senate committee elimination of this initiative. Her House
counterparts have imposed severe limits on which government jobs
could be shifted to the private sector. Prospects appear dim, but
lawmakers should realize the savings could be enormous. The
Department of Defense has privatized 81,000 civilian and military
positions since 1978, with an average savings of 33%.
- Another small-government initiative under attack is the
President's proposal to end the practice of "pay parity" between
federal military and civilian workers. President Bush and many
Republicans want military personnel to receive significantly larger
pay raises (3.5%) than their brethren in civilian government
bureaucracies. Unfortunately, apologists for federal workers always
seem to prevail in their quest to equate even the most unproductive
federal bureaucrat with our courageous military personnel. House
appropriator Ernest Istook (R.-Okla.) estimates that since 1996 pay
parity has raised the salaries of federal bureaucrats by 12.5%
above the increase in the consumer price index, amounting to
unwarranted raises totaling $12.5 billion annually.
Quite a dismal picture, isn't it?
The good news is that fiscal conservatives, especially those in the House, are fully engaged and believe that the final weeks of this session give them an opportunity to beat back the big spenders. They will insist there be offsetting spending cuts to pay for much of the "emergency" spending; they are working to stop the creation of new programs, such as a proposed $83-million suicide-prevention grant program. And they are endeavoring to pass a year-long "continuing resolution" that would freeze domestic spending at last year's level and in one fell swoop, eliminate all the budgetary smoke-and-mirrors described above. All told, a good start.
Conservatives on Capitol Hill should take seriously the warnings that the era of big government is back, take the initiative, remember Winston Churchill's admonition to "Never give in"--and prove them wrong.
Mr. Franc, who has held a number of positions on Capitol Hill, is vice president of Government Relations at the Heritage Foundation.