June 26, 1979
Page 16521
Mr. MAGNUSON. Mr. President, I would like to comment briefly on this amendment and the SBA bill in conference. I have no objections to attaching this amendment to the supplemental. However, I want its sponsor, and the other conferees on the SBA bill, to know that I strongly object to a related provision in the tentative conference agreement.
That provision, as I understand it, would eliminate the requirement in existing law that the SBA pay interest to the Treasury on the funds it borrows from Treasury for its disaster loan fund.
Those interest costs are a real cost of SBA's operations, and as such must be appropriated by the Appropriations Committee. The provision to which I object would eliminate the Appropriations Committee's jurisdiction and eliminate its opportunity to exercise oversight over SBA's disaster operations. I hope the conferees will reconsider their position on that provision.
(Mr. EXON assumed the chair.)
Mr. MUSKIE. Mr. President, will the Senator yield on that point? Will the Senator yield?
Mr. MAGNUSON. Oh, yes.
Mr. MUSKIE. I would like to strongly endorse the point that the distinguished chairman of the Appropriations Committee has made with respect to the payment of interest by SBA on money it borrows from the Treasury. That simply transforms that kind of expenditure to the backdoor spending which the budget process is supposed to eliminate. I strongly endorse the chairman's position, and urge the conferees to respond to it.
Mr. MAGNUSON. I thank the Senator.