April 13, 1976
Page 10717
Mr. MUSKIE. Mr. President, on behalf of myself and Senators, HUMPHREY, LONG, TALMADGE, NUNN, KENNEDY, BROCK, and MANSFIELD, I send an amendment to the desk and ask for its immediate consideration.
The PRESIDING OFFICER. The amendment will be stated.
The assistant legislative clerk read as follows :
The Senator from Maine (Mr. MUSKIE), on behalf of himself and others, proposes an amendment, on page 1 between lines 4 and 5, to insert a new title I — General Provisions.
Mr. MUSKIE. Mr. President, I ask unanimous consent that further reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. MUSKIE's amendment is as follows :
On page 1, between lines 4 and 5 insert the following:
TITLE I — GENERAL PROVISIONS
Redesignate sections 2 through 14 as sections 101 through 113, respectively.
After section 113, as redesignated by this amendment, insert the following new titles: TITLE II — ANTIRECESSION PROVISIONS
FINDINGS OF FACT AND DECLARATION OP POLICY
SEC. 201. (a) Findings — The Congress finds—
(1) that State and local governments represent a significant segment of the national economy whose economic health is essential to national economic prosperity;
(2) that present national economic problems have imposed considerable hardships on State and local government budgets;
(3) that these governments, because of their own fiscal difficulties, are being forced to take budget-related actions which tend to undermine Federal Government efforts to stimulate the economy;
(4) that efforts to stimulate the economy through reductions in Federal Government tax obligations are weakened when State and local governments are forced to increase taxes;
(5) that the net effect of Federal Government efforts to reduce unemployment through public service jobs is substantially limited if State and local governments use federally financed public service employees to replace regular employees that they have been forced to lay off;
(6) that efforts to stimulate the construction industry and reduce unemployment are substantially undermined when State and local governments are forced to cancel or delay the construction of essential capital projects; and
(7) that efforts by the Federal Government to stimulate the economic recovery will be substantially enhanced by a program of emergency Federal Government assistance to State and local governments to help prevent those governments from taking budget-related actions which undermine the Federal Government efforts to stimulate economic recovery.
FINANCIAL ASSISTANCE AUTHORIZED
SEC. 202. (a) Payments to State and Local Governments.— The Secretary of the Treasury (hereafter in this title referred to as the Secretary) shall, in accordance with the provisions of this title, make payments to States and to local governments to coordinate budget-related actions by such governments with Federal Government efforts to stimulate economic recovery.
(b) Authorization of Appropriations.— Subject to the provisions of subsections (c) and (d), there are authorized to be appropriated for each of the five succeeding calendar quarters (beginning with the calendar quarter which begins on July 1, 1976) for the purpose of payments under this title
(1) $125,000,000 plus
(2) $12,500,000 multiplied by the number of one-tenth percentage points by which the rate of seasonally adjusted national unemployment for the most recent calendar quarter which ended three months before the beginning of such calendar quarter exceeded 6 percent.
(c) In no case shall the aggregate amount authorized to be appropriated under the provisions of subsection (b) for successive calendar quarters beginning with the calendar quarter which begins July 1, 1976, exceed $1,375,000,000.
(d) Termination.— No amount is authorized to be appropriated under the provisions of subsection (b) for any calendar quarter if—
(1) the average rate of national unemployment during the most recent calendar quarter which ended 3 months before the beginning of such calendar quarter did not exceed 6 percent, and
(2) the rate of national unemployment for the last month of the most recent calendar quarter which ended 3 months before the beginning of such calendar quarter did not exceed 6 percent.
ALLOCATION
Sec. 203. (a) Reservations.
(1) Eligible States.— The Secretary shall reserve one-third of the amounts appropriated pursuant to authorization under section 202 for each calendar quarter for the purpose of making payments to eligible State governments under subsection (b) .
(2) Eligible Units of Local Government.— The Secretary shall reserve two-thirds of such amounts for the purpose of making payments to eligible units of local government under subsection (c).
(b) State Allocation.
(1) In General.— The Secretary shall allocate from amounts reserved under subsection (a) (1) an amount for the purpose of making payments to each State equal to the total amount reserved under subsection (a) (1) for the calendar quarter multiplied by the applicable State percentage.
(2) Applicable State Percentage.— For purposes of this subsection, the applicable State percentage is equal to the quotient resulting from the division of the product of—
(A) the State excess unemployment percentage, multiplied by
(B) the State revenue sharing amount by the sum of such products for all the States.
(3) Definitions.— For the purposes of this section—
(A) the term State means each State of the United States;
(B) the State excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the State unemployment rate for that State but shall not be less than zero.
(C) the State unemployment rate is equal to the rate of unemployment in the State during the appropriate calendar quarter, as determined by the Secretary of Labor and reported to the Secretary and
(D) the State revenue sharing amount is the amount determined under section 107 of the State and Local Fiscal Assistance Act of 1972 for the one year period beginning on July 1, 1975.
(c) Local Government Allocation.
(1) In General.— The Secretary shall allocate from amounts reserved under subsection (a) (2) an amount for the purpose of making payments to each local government, subject to the provisions of paragraphs (3) and (5), equal to the total amount reserved under such subsection for calendar quarter multiplied by the local government percentage.
(2) Local Government Percentage. — For purposes of this subsection, the local government percentage is equal to the quotient resulting from the division of the product of—
(A) The local excess unemployment percentage, multiplied by
(B) the local revenue sharing amount, by the sum of such products for all local governments.
(3) Special Rule.
(A) For purposes of paragraphs (1) and (2), all local governments within the jurisdiction of a State other than identifiable local governments shall be treated as though they were one local government.
(B) The Secretary shall set aside from the amount allocated under paragraph (1) of this subsection for all local government within the jurisdiction of a State which are treated as though they are one local government under subparagraph (A) an amount determined under subparagraph (C) for the purpose of making payments to each local government, other than identifiable local governments within the jurisdiction of such State.
(C) The amount set aside for the purpose of making payments to each local government, other than an identifiable local government, within the jurisdiction of a State under subparagraph (D) shall be—
(i) equal to the total amount allocated under paragraph (1) of this subsection for all local governments within the jurisdiction of such State which are treated as though they are one local government under subparagraph (A) multiplied by the local government percentage as defined in paragraph (2) (determined without regard to the parenthetical phrases at the end of paragraphs (4), (B), and (C) of this subsection) , unless
(ii) such State submits, within 30 days, after the effective date of this title, an allocation plan which has been approved by the State legislature and which meets the requirements set forth in section 206(a), and is approved by the Secretary under the provisions of section 206(b).
(D) If local unemployment rate data (as defined in paragraph (4) (D) of this subsection without regard to the parenthetical phrase at the end of such definition) for a local government jurisdiction is unavailable to the Secretary for purposes of determining the amount to be set aside for such government under subparagraph (C) then the Secretary shall determine such amount under subparagraph (C) by using the local unemployment rate determined under the parenthetical phrase of subsection (4) (B) for all local governments in such State treated as one jurisdiction under paragraph (A) of this subsection unless better unemployment rate data, certified by the Secretary of Labor, is available.
(4) Definitions.— For purposes of this Subsection—
(A) the local excess unemployment percentage is equal to the difference resulting from the subtraction of 4.5 percentage points from the local unemployment rate, but shall not be less than zero;
(B) the local unemployment rate is equal to the rate of unemployment in the jurisdiction of the local government during the appropriate calendar quarter, as determined by the Secretary of Labor and reported to the Secretary (in the case of local governments treated as one local government under paragraph (3) (A), the local unemployment rate shall be the unemployment rate of the State adjusted by excluding consideration of unemployment and of the labor force within identifiable local governments, other than county governments, within the jurisdiction of that State);
(C) the local revenue sharing amount is the amount determined under section i08 of the State and Local Fiscal Assistance Act of 1972 for the one year period beginning on July 1, 1975 (and in the case of local governments treated as one local government under paragraph (3) (A) , the local revenue sharing amount shall be the sum of the local revenue sharing amounts of all eligible local governments within the State, adjusted by excluding an amount equal to the sum of the local revenue sharing amounts of identifiable local governments within the jurisdiction of that State);
(D) the term "identifiable local government" means a unit of general local government for which the Secretary of Labor has made a determination concerning the rate of unemployment for purposes of title II or title VI of the Comprehensive Employment and Training Act of 1973 during the current or preceding fiscal year; and
(E) the term "local government" means the government of a county, municipality, township, or other unit of government below the State which (i) is a unit of general government (determined on the basis of the same principles as are used by the Social and Economic Statistics Administration for general statistical purposes), and (ii) performs substantial governmental functions. Such term includes the District of Columbia and also includes the recognized governing body of an Indian tribe or Alaskan native village which performs substantial governmental functions. Such term does not include the government of a township area unless such government performs substantial governmental functions.
For the purpose of paragraph (4) (D), the Secretary of Labor shall, notwithstanding any other provision of law, continue to make determinations with respect to the rate of unemployment for the purposes of such title VI.
(5) Special Limitation— if the amount which would be allocated to any unit of local government under this subsection is less than $100, then no amount shall be allocated for such unit of local government under this subsection.
USES OF PAYMENTS
SEC. 204. Each State and local government shall use payments made under this title for the maintenance of basic services customarily provided to persons in that State or in the area under the jurisdiction of that local government, as the case may be. State and local governments may not use emergency support grants made under this title for the acquisition of supplies and materials and for construction unless such supplies and materials or construction are to maintain basic services.
STATEMENT OF ASSURANCES
SEC. 205. Each State and unit of local government may receive payments under this title only upon filing with the Secretary, at such time and in such manner as the Secretary prescribes by rule, a statement of assurances. Such rules shall be prescribed by the Secretary not later than 90 days after the effective date of this title. The Secretary may not require any State or local government to file more than one such statement during each fiscal year. Each such statement shall contain
(1) an assurance that payments made under this title to the State or local government will be used for the maintenance to the extent practical, or levels of public employment and of basic services customarily provided to persons in that State or in the area under the jurisdiction of that unit of local government which is consistent with the provisions of section 204;
(2) an assurance that the State or unit of local government will
(A) use fiscal, accounting, and audit procedures which conform to guidelines established therefor by the Secretary (after consultation with the Comptroller General of the United States) , and
(B) provide to the Secretary (and to the Comptroller General of the United States), on reasonable notice access to, and the right to examine, such books, documents, papers, or records as the Secretary may reasonably require for purposes of reviewing compliance with this title;
(3) an assurance that reasonable reports will be furnished to the Secretary in such form and containing such information as the Secretary may reasonably require to carry out the purposes of this title and that such report shall be published in a newspaper of general circulation in the jurisdiction of such government unless the cost of such publication is excessive in relation to the amount of the payments received by such government under this title or other means of publicizing such report is more appropriate, in which case such report shall be publicized pursuant to rules prescribed by the Secretary;
(4) an assurance that the requirements of section 206 will be complied with;
(5) an assurance that the requirements of section 207 will be complied with;
(6) an assurance that the requirements of section 208 will be complied with;
(7) an assurance that the State or unit of local government will expend any payment it receives under this title before the end of the 6-calendar month period which begins on the day after the date on which such State or local government receives such payment, and
(8) an assurance that the State or unit of local government will spend amounts received under this title only in accordance with the laws and procedures applicable to the expenditure of its own revenues.
OPTIONAL ALLOCATION PLANS
SEC. 6. (a) State Allocator Plans for Purposes of Section 203(c) (3).
A State may file an allocation plan with the Secretary for purposes of section 203(c)(3) (C) (ii) at such time, in such manner, and containing such information as the Secretary may require by rule. Such rules shall be provided by the Secretary not later than 60 days of the effective date of this title. Such allocation plan shall meet the following requirements:
(1) the criteria for allocation of amounts among the local governments within the State shall be consistent with the allocation formula for local governments under section 203(c)(2);
(2) the plan shall use
(A) the best available unemployment rate data for such government if such data is determined in a manner which is substantially consistent with the manner in which local unemployment rate data is determined or
(B) if no consistent unemployment rate data is available. the local unemployment rate data for the smallest of identifiable local government in the jurisdiction of which such government is located.
(3) the allocation criteria must be specified in the plan, and
(4) the plan must be developed after consultation with appropriate officials of local governments within the State other than identifiable local governments.
(b) Approval.—The Secretary shall approve any allocation plan that meets the requirements of subsection (b) within 80 days after he receives such allocation plan, and shall not finally disapprove, in whole or in part, any allocation plan for payments under this title without first affording the State or local governments involved reasonable notice and an opportunity for a hearing.
NONDISCRIMINATION
SEC. 207. (a) In General— No person in the United States shall, on the grounds of race, religion, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title.
(b) Authority of the Secretary.— Whenever the Secretary determines that a State government or unit of local government has failed to comply with subsection (a) or an applicable regulation, he shall, within 10 days, notify the Governor of the State (or, in the case of a unit of local government the Governor of the State in which such unit is located, and the chief elected official of the unit) of the noncompliance. If within 30 days of the notification compliance is not achieved, the Secretary shall within 10 days thereafter
(1) exercise all the powers and functions provided by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000 e) ;
(2) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted;
(3) take such other action as may be provided by law.
(c) Enforcement.— Upon his determination of discrimination under subsection (b) the Secretary shall have the full authority to withhold or temporarily suspend any payment under this title, or otherwise exercise any authority contained in title VI of the Civil Rights Act of 1964, to assure compliance with the requirement of nondiscrimination in federally assisted programs funded, in whole or in part, under this title.
(d) Applicability of Certain Civil Rights Acts.— (1) Any party who is injured or deprived within the meaning of section 1979 of the Revised Statutes (42 U.S.C. 1983) by any person, or two or more persons in the case of such section 1980, in connection with the administration of a payment under this title may bring a civil action under such section 1979 or 1980, as applicable, subject to the terms and conditions of those sections.
(2) Any person who is aggrieved by an unlawful employment practice within the meaning of title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) by any employer in connection with the administration of a payment under this title may bring a civil action under section 706(f) (1) of such Act (42 U.S.C. 2000e5 (f) (1) subject to the terms and conditions of such title.
LABOR STANDARDS
SEC. 207. All laborers and mechanics employed by contractors on all construction projects funded in whole or in part by payments under this title shall be paid wages at rates not less than those prevailing on similar projects in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act (40 U.S.C. 276a to 276a5). The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 C.F.R. 3176) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C.276c).
SPECIAL REPORTS
SEC. 208. Each State and unit of local government which receives a payment under the provisions of this title shall report to the Secretary any increase or decrease in any tax which it imposes and any substantial reduction in the number of individuals it employs or in services which such State or local government provides. Each State which receives a payment under the provisions of this title shall report to the Secretary any decrease in the amount of financial assistance which the State provides to the units of local governments during the 12 month period which ends on the last day of the calendar quarter immediately preceding the date of enactment of this title, together with an explanation of the reasons for such decrease. Such reports shall be made as soon as it is practical and, in any case, not more than 6 months after the date on which the decision to impose such tax increase or decrease, such reductions in employment or services, or such decrease in State financial assistance is made public.
PAYMENTS
SEC. 209. (a) In General.— From the amount allocated for State and local governments under section 203, the Secretary shall pay to each State and to each local government which has filed a statement of assurances under section 205, an amount equal to the amount allocated to such State or local government under section 203.
(b) Adjustments.— Payments under this title may be made with necessary adjustments on account of overpayments or underpayments.
(c) Termination.— No amount shall be paid to any State or local government under the provisions of this section for any calendar quarter if
(1) the average rate of unemployment within the jurisdiction of such State or local government during the most recent calendar quarter which ended three months before the beginning of such calendar quarter was less than 4.5 percent, and
(2) the rate of unemployment within the jurisdiction of such government for the last month of the most recent calendar quarter which ended three months before the beginning of such calendar quarter did not exceed 4.5 percent.
STATE AND LOCAL GOVERNMENT ECONOMIZATION
SEC. 210.— Each State or unit of local government which receives payments under this title shall provide assurances in writing to the Secretary, at such time and in such manner and form as the Secretary may prescribe by rule, that it has made substantial economies in its operations and that payments under this title are necessary to maintain essential services without weakening Federal Government efforts to stimulate the economy through reductions in Federal tax obligations.
WITHHOLDING
SEC. 211.— Whenever the Secretary, after affording reasonable notice and an opportunity for a hearing to any State or unit of local government, finds that there has been a failure to comply substantially with any assurance set forth in the statement of assurances of that State or units of local government filed under section 205, the Secretary shall notify that State or unit of local government that further payments will not be made under this title until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied no further payments shall be made under this title.
REPORTS
SEC. 212.—The Secretary shall report to the Congress as soon as is practical after the end of each calendar quarter during which payments are made under the provisions of this title. Such report shall include information on the amounts paid to each State and units of local government and a description of any action which the Secretary has taken under the provisions of section 211 during the previous calendar quarter. The Secretary shall report to Congress as soon as practical after the end of each calendar year during which payments are made under the provisions of this title. Such reports shall include detailed information on the amounts paid to State and units of local government under the provisions of this title any actions with which the Secretary has taken under the provisions of section 211, and an evaluation of the purposes to which amounts paid under this title were put by State and units of local government and economic impact of such expenditures during the previous calendar year.
ADMINISTRATION
SEC. 213. (a) Rules.— The Secretary is authorized to prescribe after consultation with the Secretary of Labor, such rules as may be necessary for the purpose of carrying out his functions under this title. Such rules should be prescribed by the Secretary not later than90 days of the effective date of this title.
(b) Authorization of Appropriations.
There are authorized to be appropriated such sums as may be necessary for the administration of this title.
PROGRAM STUDIES AND RECOMMENDATIONS
SEC. 214. (a) Evaluation.— The Comptroller General of the United States shall conduct an investigation of the impact which emergency support grants have on the operations of State and local governments and on the national economy. Before and during the course of such investigation the Comptroller General shall consult with and coordinate his activities with the Congressional Budget Office and the Advisory Commission on Intergovernmental Relations. The Comptroller General shall report the results of such investigation to the Congress within one year after the date of enactment of this title together with an evaluation of the macroeconomic effect of the program established under this title and any recommendations for improving the effectiveness of similar programs. All officers and employees of the United States shall make available all information, reports, data, and any other material necessary to carry out the provisions of this subsection to the Comptroller General upon a reasonable request.
(b) Countercyclical Study.— The Congressional Budget Office and the Advisory Commission on Intergovernmental Relations shall conduct a study to determine the most effective means by which the Federal Government can stabilize the national economy during periods of rapid economic growth and high inflation through programs directed toward State and local governments. Such study shall include a comparison of the effectiveness of alternative factors for triggering and measuring the extent of the fiscal coordination problem addressed by this program, and the effect of the recession on State and local expenditures. Before and during the course of such study, the Congressional Budget Office and the Advisory Commission shall consult with and coordinate their activities with the Comptroller General of the United States. The Congressional Budget Office and the Advisory Commission shall report the results of such study to Congress within two years after the date of enactment of this title. Such study shall include the opinions of the Comptroller General with respect to such study.
TITLE III
SEC. 301. (a) There is authorized to be appropriated to carry out title II of the Federal Water Pollution Control Act, other than sections 206, 208, and 209, for the fiscal year ending September 30, 1977, not to exceed $1,417,968,050 which sum (subject to such amounts as are provided in appropriation Acts) shall be allotted to each State listed in column 1 of table IV contained in House Public Works and Transportation Committee Print numbered 94-25 in accordance with the percentages provided for such State (if any) in column 5 of such table. The sum authorized by this section shall be in addition to, and not in lieu of, any funds otherwise authorized to carry out such title during such fiscal year. Any sums allotted to a State under this section shall be available until expended.
(b) The Administrator of the Environmental Protection Agency shall, within 45 days from the date of enactment of this section, report to Congress his recommendations for a formula or formulas to be used to allot equitably and allocate new funds authorized to carry out title II of the Federal Water Pollution Control Act.
Mr. MUSKIE. Mr. President, once again I rise to urge my colleagues to support the passage of a comprehensive legislative package to respond to today's economic situation. I am particularly concerned, of course, with the adoption of the countercyclical assistance program which I am offering as an amendment to S. 3201.
The amendment I have sent to the desk also includes funds to implement the so-called Talmadge-Nunn waste treatment proposal, which Congress almost enacted into law earlier this year.
I am concerned, Mr. President, with the passage of the entire package, because I believe it presents the best opportunity we may have to try to ease the pain of this recession.
I remind the Senate that in the first concurrent resolution of last year, Congress as a whole, including the Senate, approved $4.5 billion for anti-recession programs of this kind. We have not enacted any of those programs into law. That objective was reaffirmed by Congress last December in the second concurrent resolution — reaffirmed by overwhelming votes in both Houses. It was vetoed by the President in February; and 75 percent of the Members of Congress voted to override that veto. Unfortunately, three less than two-thirds of the Senate joined that 75 percent, but in terms of the total numbers in Congress, 75 percent voted to override the President's veto on a measure very like what this one would be if my amendment is adopted.
The distinguished Senator from Tennessee refers to this as a "Christmas tree" amendment. I choose to refer to it as a reaffirmation of our commitments made on those several occasions — the first concurrent resolution last year, the second concurrent resolution last December, the overwhelming vote in both Houses to support the bill, and the overwhelming vote to override the veto, which failed by three votes in the Senate.
That is not a "Christmas tree." That was a program that was put together after long, hard work extending over a year, and well defined, when it finally came out of conference between the Senate and the House of Representatives, as a clearly stated congressional policy objective; and when I say congressional, I mean bipartisan.
The concurrent resolutions of which this program was a part, the first one last year and the second one last year, were supported by Senators on both sides of the aisle. So this is a congressional policy. It is not a Muskie policy; it is not a Democratic policy; it is not a "Christmas tree" policy.
It is a well defined, well stated, several times reaffirmed policy of the Congress of the United States. So references to it as a "Christmas tree" are simply a diversion from the main point. What I am asking the Senate to do here today is to reaffirm its support for congressional policy.
Why do I do that? There may be some who will argue that it is no longer needed. I would think that group ought not to include the Senators who have just spoken this afternoon, because I gather they argue for this public works bill, on the basis that the state of the economy requires it.
Indeed, I heard the Senator from Tennessee say that it is needed to revive a construction industry that is in the doldrums. I respectfully suggest to the Senator from Tennessee that it is not only the construction industry that is impacted by this recession. And let me make that point at greater length, if I may: unemployment in March of 1976, Mr. President — last month — was 7½ percent, representing 6 million to 7 million Americans who are out of work.
Now, this is a better percentage than it was a year ago. But let us look a little closer. In January of this year, when national unemployment was 7.8 percent, 32 States had unemployment rates of 8 percent or more. That is not just high, Mr. President, it is very high. In the same month, 40 States had unemployment of 7 percent or more. And 30 States, Mr. President, had higher unemployment in January of this year than they had during the first quarter of last year. So over half the States are worse off now than they were a year ago. And yet people are saying the recession is over.
In my State, unemployment went down over this period, and it is still at 11 percent.
Never before in my career in the Senate can I recall a time when we in this body considered such levels of unemployment not high enough to do something about it.
We cannot take much solace in the President's own projections of 6.9 percent for 1977 and 6.4 percent for 1978, 2 years down the road.
Still, we bicker about whether or not we ought to respond to this problem with legislation.
Some people, including the President, wonder and hope that, if we can just wait long enough, things will somehow improve of their own accord.
These people are probably right, in saying that if we are willing to wait for several years, we may once again reach a tolerable level of unemployment. But I can only guess at the staggering cost of such a non-policy to the Nation, both in human and budgetary terms. It is generally agreed that for every increase of 1 percent in the unemployment rate over full employment the cost to the U.S. Treasury is $17 billion, $3 billion in increased benefits to the unemployed and $14 billion in lost revenues.
This means that the current unemployment rate of 7.5 percent is costing taxpayers an unbelievable $50 billion a year. That happens to be the amount of the deficit that this Senate wrote into the congressional budget just yesterday, less than 24 hours ago.
Yet there are those who say we do not need to do anything about it and that what we are trying to do is a "Christmas tree."
For those of our colleagues who object to the cost of my amendment to the pending bill or to the cost of the package as a whole, I say ponder these costs: the costs of doing nothing; ponder, also, the costs that are not so easily measurable, the costs of the city of Detroit, for example, where the mayor lays off 1,200 more employees as he did last week for a total of more than 6,000 in all; or the costs to the city of Philadelphia, if that city's only public hospital must be closed; or the costs to the national economic policy of State and local tax increases such as we have had just this winter in Maine, which negate the impact of costly tax reductions we in Congress have enacted as a stimulus to the economy.
We do one thing to move the economy in one direction and then sit blithely by while State and local governments do the reverse thing which offsets the economic policy we undertake to set.
The amendment I am offering today is essentially the same as legislation the Senate has approved on two prior occasions. I think it offers us a unique and useful anti-recession tool. The anti-recession part of this amendment is an element of the congressional budget we wrote a year ago.
We reaffirmed it in the second concurrent budget resolution last December. We came close to overriding the Presidential veto of it this winter. And yesterday, Mr. President, we reaffirmed the countercyclical part of this amendment in the first concurrent budget resolution for fiscal year 1977.
I invite those who supported that first concurrent resolution yesterday to support this amendment. We considered seven successive amendments to the budget resolution, and I led in rejecting all of them, even though several of them would have been consistent with votes I took in markups of the Budget Committee. I held the line. Why? Because I took the position that it was essential to establish the budget process. Now I say to those who joined me in that, join me again to reaffirm the priorities we set there. This was part of it, and the fact that it is part of it was used as an argument against some of the amendments that were defeated yesterday and on Friday. So I ask Senators to show and demonstrate a little consistency with the congressional policy which is a year old, which was reaffirmed yesterday. If Senators want to give the budget process some credibility, do so when it does not necessarily conform to their views as I did all day yesterday and all day Friday because it is congressional policy.
Why do I think this is a unique and useful anti-recession tool, Mr. President?
First. Because it responds to a problem that is a direct cause of the recession, the budgetary squeeze that has forced State and local governments to lay off their employees, policemen, and firemen, or raise their taxes.
Second. It is a high job producer. The Congressional Budget office estimated last September that for each $1 billion in countercyclical assistance spent about 100,000 jobs would be created. In fact, the CBO found countercyclical second only to public service jobs in direct job producing impact among anti-recession programs.
Third. The countercyclical funds would get out quickly into the economy providing an immediate stimulative impact.
Fourth. The program would shut itself off entirely when the recession had subsided so that it would not contribute to a revival of inflationary pressures.
Fifth. The assistance is very selectively targeted to reach only those places which have been severely affected by the recession.
Finally, countercyclical assistance would strengthen the hand of the Federal Government in dealing with the recession by helping to prevent State and local governments from taking budgetary actions which undercut Federal efforts to stimulate the economy.
For those of our colleagues who question the need for this legislation, because unemployment is getting better, I point out that 60 of them have worse unemployment in their States than they had 1 year ago.
Sixty of my colleagues in this body have worse unemployment in their States than they had 1 year ago.
To those concerned about this legislation because of the size of the Federal deficit, let them remember that the Federal deficit we approved yesterday is the product of high unemployment and that continued high unemployment only means more and bigger deficits to come.
Let me also remind my colleagues again that countercyclical assistance is a congressional priority. That Congress weighed these factors and decided to do nothing is not a message I would like to take home to the people in the State of Maine.
Mr. President, I have invested a great deal of my time and my energy in the congressional budget process. I have supported, fought for, and succeeded in getting Senate approval for budget resolutions that did not conform in every respect with my own priorities. I did so because I think it is important that Congress should establish its priorities. When Congress establishes its priorities, I take it that that imposes a responsibility on the part of every Member of this body to be influenced by it and to support it to the extent he can, in a body where there must be give and take between differing points of view.
This is a clearly stated congressional policy, stated over and over and over again. It should not be necessary for me to stand here and exhort my colleagues to support it. We have talked a great deal in the Budget Committee about the importance of establishing the credibility of the budget process. I assume that that objective does not exclude those provisions of the congressional budget with which individual Members disagree. If I am wrong in that respect, I will reconsider some of the votes I cast yesterday.
Congress has said for years that doing something about this unemployment is an important congressional priority. It specifically has approved countercyclical assistance. So I am asking that we do what we have said had to be done.
With respect to the other part of this program, the so-called Talmadge-Nunn part of this amendment, my colleagues will recall its origin. It originated last summer, on the floor of the Senate, when Senator TALMADGE and Senator NUNN raised the issue of the apportionment of waste treatment funds. They argued — and the Senate overwhelmingly supported them — that the current formula for distribution was inequitable to their State and to a majority of the States.
They prevailed, and I was on the other side of the issue. They prevailed by a margin, I believe, of close to 2 to 1. So the Senate was solidly on their side on the issue.
We went to conference. We had a difficult time persuading the House to recognize the equity of the Talmadge-Nunn case. It was only after weeks of long and difficult negotiation that the issue finally was received by an approach that was supported by both the Senate and the House conferees and subsequently by both the Senate and the House. That issue still hangs. It has not been received finally into law. It still hangs.
What we undertake to do with this amendment is to put this also in the legislative stream once again, as a reflection of a clearly stated, carefully worked out congressional policy. It is not a Christmas tree ornament that we dragged out of a closet from last Christmas. The Senator from Tennessee understands that as well as I do. Both elements in here — and that is all I offer — have been soundly and solidly affirmed by both Houses of Congress and reaffirmed in an override vote that was supported by 75 percent of the Members of Congress. To describe an amendment that incorporates these two as a Christmas tree proposal, in my opinion, the height of cynical rhetoric.