“The Knockout Punch to Taxpayers,” Schatz Calls It

(Washington, D.C.)—The Council for Citizens Against Government Waste (CCAGW) today objected to the omnibus spending bill now being negotiated in conference, which will fund more than half the federal government in the fiscal year 2004.  The $780 billion package merges seven unfinished appropriations bills and could be finalized today, though Democratic leaders said they will block a quick vote because they do not know what is in the package. 

“Alongside the $400 billion Medicare bill and the $33 billion energy bill, the omnibus package will deliver the knockout punch to taxpayers in the final round of one of the most spendthrift sessions in legislative history,” CCAGW President Tom Schatz said.  “In a mad rush to adjourn for the holiday, Congress scribbled together a mishmash of big government programs and last-minute add-ons for local interests.”

The omnibus bill will dispense $330 billion in discretionary funds and the remainder in mandatory spending.  Though House and Senate conferees remained tight-lipped during negotiations, the bill reportedly expanded to pacify various requests in order to ensure passage of the final bill.  If a vote takes place today, members of Congress will not have time to review the bill’s contents, but a peak under the conference curtain reveals the following: $7.2 billion in subsidies to troubled tobacco farmers; a plethora of exemptions to the administration’s competitive sourcing initiative, and $4 billion in additions that would exceed the discretionary cap of $786 billion for all 13 appropriations bills.         

“The omnibus package appears to absorb more pork and corporate handouts for every minute it sits on the negotiating table,” Schatz continued.  “Omnibus packages magnify the potential for such shenanigans because each bill is not considered on its own merits.  Instead of rubberstamping this giant mystery bill, Congress should freeze funding at current levels and vote on the unfinished spending bills early next session.”    

The $374 billion deficit for fiscal year 2003 translates to $3,000 of debt per U.S. household.  The deficit for fiscal year 2004 is expected to top $500 billion.  With no way of paying for the $400 billion prescription drug bill, Congress will likely revert to more borrowing, potentially triggering a financial implosion when the baby boomers double the size of the Medicare population.  Wall Street investment firm Goldman Sachs recently warned that the U.S. budget is “out of control.” Economists are forecasting the likelihood of currency devaluations, massive tax increases, and collapsing retirement accounts in the coming decades.   

“Supporters of the omnibus are bullying and bribing the bill through Congress,” Schatz concluded.  “While the president and majority leaders are out to lunch on the deficit problem, genuine calls for fiscal restraint are nothing but distant echoes in the halls of the 108^th Congress.”       

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.