Statement of Senator Max Baucus
Environment and Public Works Committee
Subcommittee on Transportation and Infrastructure Hearing,
Army Corps Budget
April 26, 2001

Thank you Mr. Chairman. I would like to thank our two witnesses for attending this hearing today. I know this is a busy time for you.

I have a lot of concerns about the Administration's Budget Request for the Army Corps of Engineers Civil Works program. The President has slashed the Corps' budget by 14%, at a time when the Corps is facing a construction backlog of over $40 billion and has been asked to explore serious institutional reforms. Not only that, but the Administration's budget has hit my state pretty hard, and hit it where it hurts -- the recreation economy of Central and Eastern Montana. Several authorized projects in my state, mostly around Fort Peck Reservoir, will receive no funding under the Administration's budget request.

As I emphasized at the last hearing that General Flowers attended, recreation is everything to the economy of my state around Ft. Peck Lake. One project in particular that was authorized by the Water Resources and Development Act of 2000 provides for a Fort Peck Fish Hatchery. This project is hugely popular because it will bring many environmental and economic benefits to my state, including improved fish stocks, help for the endangered pallid sturgeon, and economic opportunities for Central and Eastern Montana communities.. Private individuals, in cooperation with the state of Montana, have already begun laying plans for the hatchery, and are even now searching for ways to raise money for a hatchery design until the Army Corps comes through with funding. However, no funding has been proposed.

A few weeks back, this Committee explored some serious criticisms about the Corps' management practices and the Corps' alleged bias towards large construction projects. I believe at that time General Flowers was sincere in his expressed desire to respond to the criticisms leveled at the Corps. He held out the hope that there would be real reform in the way the Corps does business, that we would see independent review of large Corps projects, that we could see more public participation in the development of projects.

However, I don't hold out a lot of hope that the President's Budget Request will allow the Corps to achieve real reform because I don't think the budget gives them the resources to do it. I look forward to hearing the testimony of the witnesses on this issue, and I hope they can persuade me that the President's budget will allow the Corps to faithfully respond to criticisms, and will ensure the integrity of the Civil Works planning process.

I also have concerns about the Administration's proposal to substantially increase recreation user fees. I have concerns about how such a proposal will be implemented, and what the impact increased fees will have on the residents of my state.

In short, I question the ability of the Corps to carry out the reforms it has been asked to undertake, attend to its huge backlog of projects, and meet its many other responsibilities to the citizens of my state and the country.

Again, I would like to thank General Flowers and Claudia Tornblom for being here. I look forward to exploring these and other issues with them at today's hearing.