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The Spending Bug Crosses the Aisle

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Tim Penny is a former Democratic congressman from Minnesota and a fellow in fiscal policy studies at the Cato Institute. Stephen Moore is director of fiscal policy studies at Cato

As Congress completes work on this year’s spending bills, it is becoming increasingly difficult to distinguish Republicans from the spendthrift Democrats they replaced.

In recent weeks, Republican appropriators have produced a torrent of bills that provide some of the largest spending increases in a decade. Spending on the environment, education, housing, health care, foreign aid, training and labor would soar. Scores of outdated and unproductive agencies that were supposedly headed for the federal graveyard when Republicans came to power have now had their budgets fully replenished.

While many of the appropriations bills--with price tags totaling more than $500 billion--are still being written, the preliminary versions are generous in the extreme. The $270-billion funding bill for the departments of Labor, Education and Health and Human Services is an astounding 29% increase in their combined budgets in just three years.

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The budget crafted two years ago by House Budget Committee Chairman John Kasich (R-Ohio) called for the elimination of 300 major programs that long ago outlived their missions. This year’s budget increases the budgets for many of those programs.

Some of those programs have been allotted more bloated budgets than ever before. The Senate calls for a 35% increase for bilingual education, a 20% increase for home heating assistance, a 50% increase for public housing and a 5% increase for Americorps. The battle over the fate of the National Endowment for the Arts has become a litmus test of the GOP’s resolve to cut spending. Its budget was cut by just 1%; at this rate it will take 98 years to end the NEA.

Given recent fund-raising scandals, one federal agency ripe for termination is the Department of Commerce. Not only is Congress reneging on shutting down the agency, but GOP appropriators plan to allocate $4.2 billion in 1998 to Commerce, a $300-million increase from 1997. This agency and most other corporate welfare programs have escaped the GOP’s budget knife for the third straight year.

Congress just finished high-profile show trials documenting the Internal Revenue Service’s all-too-routine abuses of taxpayer rights. But that didn’t dissuade a House-Senate budget conference from rewarding the IRS with a $7.6-billion appropriation, a 9% increase.

Meanwhile, almost every one of the spending bills is crammed with white elephant projects that make a mockery of the GOP promise to deliver smaller and smarter government. The military construction bill funds 103 projects that are wholly unrelated to improving the nation’s national defense, including a $1.4-million ice skating rink and a $300,000 car wash in Ft. Wainwright, Alaska--home of Senate Appropriations Committee Chairman Ted Stevens.

In the House, Bud Shuster’s (R-Pa.) highway bill, on hold until next year, is a monument to fiscal profligacy. The standing joke in Washington is that no blade of grass is safe while Shuster is Transportation Committee chairman. His bill would exceed even the budget deal’s accommodating spending caps by some $30 billion over the next five years.

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Things are seriously off track in Washington when the last defense against runaway spending is Bill Clinton’s line-item veto.

Yet some congressional Republicans have responded to the president’s sensible line-item vetoes by indignantly calling for the repeal of that spending reduction tool.

The culture of spending in Washington that caused Democrats to finally lose control of Congress in 1994 has triumphed again. The powerful political forces that impel Congress to spend tax dollars, rather than save them, have spread like a virus from the Democrats to the Republicans.

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