Bush’s Ethics Proposals Face Uncertain Future : Congress’ Opposition to Some Parts Likely; Pay Issue Sidestepped

President Bush, saying that the American people are troubled by “brazen contempt for the letter or spirit” of ethics laws, Wednesday proposed a package of reforms including more stringent financial disclosure rules for federal officials, restrictions on lobbying by former members of Congress and a ban on some campaign contributions.

Bush also called for a 25% pay increase for federal judges but stopped short of proposing a raise as well for members of Congress and employees of the executive branch.

“Congress should have a pay increase,” he said in a speech to the American Society of Newspaper Editors, where he announced the ethics package. But, he added, “there is no point, absolutely no point, in putting Congress through another traumatic bashing” now like the furor that led to the defeat of a 50% pay raise earlier this year.

Announcement of the reform package redeemed Bush’s campaign promise to tighten ethics laws, but its prospects are unclear. Some congressional aides have suggested that it could be boosted if the pending ethics report on House Speaker Jim Wright’s financial affairs triggers heightened public concern over the issue. Otherwise, it could be hamstrung by likely congressional opposition to a number of provisions.

Although Bush sidestepped the question of congressional pay, Congress is the target of most of the new proposals in his package. The plan would impose several new rules and establish a new Congressional Ethics Office, with power to conduct public inquiries of allegations against members or their aides. Currently, such allegations are investigated in secret by the congressional ethics committees and often become public only if the committees vote to impose some penalty.

Under the new plan, members of Congress and their aides would have to wait a year after leaving government before they could lobby former colleagues. A similar “cooling off period” already applies to executive branch workers. Congressmen also would be forbidden from voting on legislation that affects any company with which they are negotiating for jobs.

Congressional staff members, although not the lawmakers themselves, would be covered by the federal conflict-of-interest law that forbids taking action that affects a company in which the individual has a personal stake.

By contrast, Bush has proposed relatively few changes in the rules governing his own appointees in the executive branch. And some parts of his plan, such as providing a new tax break to assist government officials who must sell assets to avoid conflicts of interest, would loosen current restrictions.

Bush aides say that the emphasis on Congress is justified because ethical rules for the legislative branch have been less stringent than those covering the rest of the government. The new plan is designed to put all three branches of the government--the executive, the legislative and the judiciary--on the same level, they said.

“The American people do not understand why certain behavior is considered criminal when committed by an executive branch official (but is) perfectly legal when committed by someone in another branch,” Bush said in his speech.

The package disappointed some outside groups that have campaigned for more dramatic overhauls of the federal ethics code. In particular, critics argue that Bush should have endorsed a ban on speech and appearances fees for members of Congress. Such honorariums can add nearly $36,000 to the income of some lawmakers.

Bush “caved in to pressure by members of Congress who want to keep this corrupt system going,” complained Fred Wertheimer, president of Common Cause, the citizens lobby. Bush aides countered that proposing to eliminate honorariums without recommending a pay raise would only alienate Congress.

While many of the ethics proposals are highly technical, a few of the changes would have a clearly noticeable effect. For example, government officials would, under Bush’s plan, have to report exactly how much money they have, rather than reporting their income and wealth only in broad ranges that effectively conceal much of their net worth. Officials also would be required to report the amount of money they borrow from relatives, something they currently do not have to disclose.

Bush’s proposed campaign finance reform would eliminate contributions directly to candidates by special interest political action committees. Rather, PACs would be allowed to contribute to political parties, which, in turn, would divide the money they received among their candidates.

In the past, critics have charged that direct contributions tended to protect incumbents, making challenges by other candidates difficult and locking in the parties’ competitive positions in Congress.

Bush also has proposed that members of Congress be banned from converting campaign funds to personal use. Congress already has forbidden most members from converting campaign funds to other uses but included a “grandfather clause” for those who were in Congress before 1980. Effectively, that clause has allowed some of Congress’ most senior members to amass nest eggs worth hundreds of thousands of dollars, a practice that Bush would end.

Campaign contributions, he said, “should not become a sort of individual retirement account for members of the United States Congress.”

During a question-and-answer session with the editors, Bush defended the pace of the federal government’s involvement in fighting the oil spill in Alaska’s Prince William Sound, pointing to the contributions of the Coast Guard and stating that the government moved “more quickly and more boldly than it gets credit for.”

The President signaled that he would veto a revision in the broadcasting Fairness Doctrine, now making its way through Congress. A similar bill was vetoed by former President Ronald Reagan.

And, asked by the father of a 12-year-old black child whether the young girl might some day be President, Bush said: “I hope that the progress this country has made and will make in the future will guarantee that a black teen-ager today, female, might well be President of the United States.”

HIGHLIGHTS OF THE BUSH ETHICS PACKAGE

Public disclosure of the exact value of assets owned by government

officials.

Members of Congress and staff required to wait one year before taking

jobs as lobbyists.

Members of Congress and staff to be covered by new conflict of interest

rules.

New Congressional Ethics Office to investigate allegations and make

public reports.

Special prosecutors to be given authority to investigate Congress as

well as executive branch officials.

Prohibition on political action committee (PAC) contributions directly to

congressional candidates.

New tax break for officials who must sell assets to avoid conflicts of

interest.

A 25% pay increase for federal judges.