Sen. Thad Cochran of Mississippi, the ranking Republican on the Senate Appropriations Committee, said Monday much of the spending in the $887 billion economic stimulus package would be unnecessary if only Congress had passed the individual spending bills last year to fund federal agencies and programs for fiscal year 2009.

Rather than blame former President Bush entirely for the fiscal mess, “we need to look at ourselves. Congress didn’t even try to enact” the spending bills last year, Cochran said during the opening debate on the Senate stimulus bill (HR 1). Instead, Congress last fall passed a $630 billion continuing resolution that keeps the government funded at fiscal year 2008 levels through March of this year (see Daily GPI, Sept. 30, 2008).

“[Had] we enacted those appropriations bills last fall, agencies would already be contracting, hiring and spending their funding allocations. This week we would be having a debate probably about the merits of supplementing some of those allocations of federal funds. Instead we’re considering a bill that supplements many existing programs without members even knowing what the regular appropriations bills contained for those programs,” he noted.

The Democratic leadership last fall “made a conscious decision not to engage the former president on spending issues or Outer Continental Shelf oil and gas leasing,” which Cochran believes is “another example of something that could be labeled as stimulative” and should be included in the Senate economic recovery package.

He said his biggest concern with the Democrats’ recovery package is that it “is not immediately stimulative” to the economy. “The Senate is being asked by the administration to take a big leap of faith — that the massive spending proposed in this bill will, in fact, stimulate growth of the economy even though much of the funding will not be spent in the next year or two.”

Even is the proposed spending is entirely appropriate, “it is reckless to be providing it in the absence of any budgetary context and having done very little due diligence,” Cochran said. He warned that the spending in the economic package could become a permanent part of the budget in a couple of years and worsen the federal deficit.

“Clearly we are seeing the efforts by some to use this stimulus bill to achieve long-term objectives that go beyond addressing our short-term economic policy and problems,” such as in the area of energy. The Democrats have been advocating increased production of renewable fuels for years, and the stimulus package gives them the opportunity to provide the funding.

The Senate stimulus package, which was voted out of the Senate Finance and Appropriations committees last Tuesday, contains about $365 billion in new spending and $522 billion in tax cuts/incentives and mandatory spending measures, of which $21 billion is allocated for energy-related tax cuts and $49 billion for direct investments in renewable fuels, energy efficiency and power transmission facilities.

The House package, which lawmakers approved by 244-188 last Wednesday, contains approximately $215 billion in tax cuts and incentives and $604 billion in direct spending. The energy-related portion makes up an estimated $20 billion in tax credits and incentives and approximately $50 billion in investments to spur the development of renewable fuels, boost energy efficiency and construct new electric transmission facilities over a 10-year period.

“We should not…rush head long into fiscal commitments that may haunt us for years to come,” Cochran said. “I think all senators agree the economy is under severe pressure and Congress should take quick but sharply focused action to do those things we are confident will have an immediate stimulative impact on the economy.”

The Senate Democratic leadership believes a final vote on the economic stimulus package may come by the end of the week, with both houses then moving to reconcile the differences in their bills. The leaders hope to complete the massive stimulus measure and send it to President Obama by the Presidents Day break.

“Senators should expect long days with votes on numerous amendments” this week, said Senate Majority Leader Harry Reid (D-NV). He noted that “as many amendments as people feel appropriate” can be offered by both Democrats and Republican. Reid told Minority Leader Sen. Mitch McConnell (R-KY) that Republicans could begin offering amendments to revise the bill on Wednesday.

“We’re going to be as thoughtful and …considerate” to both sides, he said in a conciliatory gesture.

Democrats, who have a 58-41 majority in the Senate, appear to have softened their tone, realizing that they will need Republican support to get their $887 billion recovery package through the chamber. Although the package easily cleared the House last week, not one Republican voted in favor of it.

Unlike some Republicans, Cochran does not believe that Democrats are shutting Republicans out of the negotiation process. “This is no effort to railroad something through here without giving individual senators the opportunity to carefully consider everything in here, to ask questions,” he said.

“This bill is not perfect,” acknowledges Appropriations Committee Chairman Daniel Inouye (D-HI), “but we should not allow our fear of imperfection [to keep us] from taking bold steps.”

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