For Immediate Release

Thursday, March 20, 2003

Contact: Jim Berard

(202) 225-6260

 

 

 

Oberstar Decries Transportation Cuts

In FY04 Budget Resolution

 

Funds for Coast Guard, railroad retirees, 9/11 victims to be cut

 

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WASHINGTON—The Ranking Democratic Member of the House Transportation and Infrastructure Committee today voiced strong opposition to the Budget Resolution for Fiscal Year 2004 produced by the House Budget Committee.  Calling the budget “an assault on working men and women,” Rep. James L. Oberstar of Minnesota argued that the resolution would force cuts in pensions for railroad retirees as well as retired Coast Guard personnel, and would trim the fund to compensate victims of the September 11, 2001, terrorist attacks.

 

The text of Oberstar’s statement follows:

 

 

The Honorable James L. Oberstar

Ranking Democratic Member

Committee on Transportation and Infrastructure

 

H. Con Res. 95, FY2004 Budget Resolution

March 20, 2003

                                   

Mr. Chairman, I rise in strong opposition to H. Con. Res. 95, the FY2004 Budget Resolution.  Regrettably, this Republican Budget is likely to force the Transportation Committee to slash the pensions of 34,000 Coast Guard retirees and 645,000 railroad retirees and their dependents, and the relief provided to families of the victims of September 11^th.  Who in this House believes that we should cut the September 11^th Victims’ Compensation Fund to finance more tax cuts for the rich?  With the Nation now at war, who in this House believes that the men and women of the Coast Guard, who are protecting our shores and ensuring the safe passage of U.S. Navy ships in the Persian Gulf, should be worrying that this Congress may cut their retirement?  This Budget displays a callous disregard for the families of the victims of September 11^th, the men and women of the Coast Guard, railroad retirees, as well as the infrastructure needs of this country.

 

Section 201 of the Republican Budget Resolution forces the Committee on Transportation and Infrastructure to cut $3.7 billion from its mandatory programs over the next 10 years.  We are told to find these savings from “waste, fraud, and abuse” and to produce greater efficiency in our programs.  While these platitudes of “waste, fraud, and abuse” make for good rhetoric, these policies will have a devastating effect on these retirees and the families of the victims of the September 11^th attack.

 

The Congressional Budget Office says that 90 percent of the Transportation Committee’s funding of mandatory programs includes these three:

Ø                  the September 11^th Victims’ Compensation Fund,

Ø                  Coast Guard retirement pay; and

Ø                  Railroad retirement pensions and unemployment compensation. 

 

And this is where we’re expected to find “waste, fraud, and abuse”? 

 

The September 11^th Victims’ Compensation Fund provides compensation to the victims, or their families, who were injured or killed as a result of the September 11^th terrorist attacks.  Mr. Chairman, no one in this chamber will forget the tragedy of September 11^th.  I can only hope that the families of the victims of September 11^th have begun to put their lives back together.  How can we, in good conscience, retreat from our solemn commitment to help them rebuild their lives?  I commit to them now that I will oppose this Republican plan that could cut funding from the families of the victims of September 11^th.  

 

Similarly, I commit to the men and women of the Coast Guard, both the 36,000 Coast Guard officers and enlisted personnel and the 34,000 Coast Guard retirees, that I will strongly oppose this Republican Budget Resolution and its likely cuts in Coast Guard retired pay. 

 

As we debate this Budget Resolution, Coast Guard cutters are on combat patrol with the U.S. Navy to help secure shipping lanes and the safe passage of Navy ships in the Persian Gulf and the Mediterranean.  At home, the Coast Guard continues to protect our shores and ports.  On Monday, March 17, the Secretary of Homeland Security initiated Operation LIBERTY SHIELD to increase security at our Nation’s borders and protect our critical infrastructure and key assets.  Under Operation LIBERTY SHIELD, the Coast Guard is increasing patrols of major U.S. ports and waterways, increasing its escorts of ferries and cruise ships, providing armed Sea Marshals onboard every high interest vessel arriving at or departing from U.S. ports, and enforcing security zones in and around critical infrastructure sites in key ports and petroleum facilities close to large coastal communities.  In addition to its military and homeland security missions, the Coast Guard continues its search-and-rescue mission – responding to nearly 37,000 calls and saving 3,654 lives in 2002 – and many other missions.  The Coast Guard has long been stretched thin, but has always been ready – “Semper Paratus” – to answer the call.  I have always maintained that the public gets more out of its investment in the Coast Guard than virtually any other government service.  The enlisted men and women of the Coast Guard should not have to worry about this Republican effort to cut their retirement pay.

 

The Republican Budget Resolution also is likely to result in significant cuts to railroad workers’ retirement and unemployment compensation programs.  Railroad workers, unlike other workers, are not covered by the Social Security system.  They have their own retirement program.  Last Congress, the bipartisan leadership of the Transportation Committee, with the strong support of rail unions, railroads, and rail retirees and their dependents, introduced H.R. 1140, a bill to revise the railroad retirement program to restore rail worker benefits and decrease railroad payroll taxes.  The House overwhelmingly passed this legislation, by a vote of 383-33, and it became law.  Today, the Republican Budget Resolution forces the Transportation Committee to consider changing this Act to cut railroad worker retirement benefits and unemployment compensation.  I commit to the 248,000 rail workers and the 645,000 rail retirees and their dependents that I will fight any attempt to roll back the benefits so recently restored to you. 

 

Beyond these devastating cuts required by the reconciliation instructions, this Budget Resolution does little to meet our infrastructure investment needs.  For the reauthorization of the Transportation Equity Act for the 21^st Century (TEA 21), the Transportation and Infrastructure Committee urged the Budget Committee to provide $50 billion in budget authority for highway, highway safety, and transit programs.  In its letter to the Budget Committee, 74 of the 75 Members of the Transportation Committee stated that we must provide this level of funding in FY2004 to maintain our surface transportation systems and have any hope of improving the overall condition of the Nation’s highway and transit systems.

 

Regrettably, this Budget Resolution provides $39 billion for these programs – little more than the status quo for TEA 21 reauthorization.  Through the vigorous efforts of the bipartisan leadership of this Committee, the Resolution also provides a reserve fund that would allow for additional allocations if this or other legislation includes increases in Highway Trust Fund receipts.  Although this does provide the Transportation Committee with the opportunity to address this issue at a later date, this Resolution does nothing to address our enormous highway and transit infrastructure needs in the fiscal year ahead.

 

Moreover, the Republican Resolution cuts the amount of highway and transit funding that actually may be obligated in FY2004 below the CBO baseline.  Specifically, the Republican Budget Resolution assumes a cut in the transit program of $98 million in FY2004 and $2.5 billion over the next six years.  This cut is directly contrary to TEA 21’s goal of modal balance.  Under TEA 21 we significantly increased transit funding by guaranteeing $36 billion for transit.  As a result of this increased investment, transit ridership has added 1.6 billion riders – more than 900,000 new riders each day – over the last five years.  This transit renaissance could be threatened by these cuts in transit funding. 

 

At a time when our Nation’s infrastructure faces huge unmet safety and security needs, congestion is crippling our cities, and our economy has lost 2.5 million jobs in the past two years, the Republican Budget Resolution cuts these vital programs that could address infrastructure security needs and congestion problems and create family-wage jobs to grow our economy.  Instead, it provides more than $1 trillion of new tax cuts. 

 

This Budget Resolution reflects more than misplaced priorities.  It is an assault on working men and women from the Coast Guard to the Maintenance of Way railroad employees.

 

Mr. Chairman, I strongly oppose the Republican Budget Resolution and urge my colleagues to vote “no”.   

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