Senate Proceeding on Feb 2nd, 2009 :: 3:55:05 to 4:19:30
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3:54:55 to 3:55:15( Edit History Discussion )

Olympia Snowe: quorum call: ms. the presiding senator from maine. ms. snowe: i ask unanimous consent to quorum call. the presiding officer: without objection. ms. snowe: thank you, mr. president. i rise -- the presiding officer: under the previousrder, the senator is recognized ms. snowe: okay. thank you, mr. president. i rise today to speak and to address as a member of the

3:55:05 to 4:19:30( Edit History Discussion )
Speech By: Olympia Snowe

3:55:16 to 3:55:37( Edit History Discussion )

Olympia Snowe: senate finance committee, to the issue of the economic stimulus that we have begun to consider here in the united states senate. there is no question, mr. president, that we deliberating on one of the most consequential issues of our time because the gravity of the economic circumstances is one of the most dire that we have witnessed since the great depression, and in just three

3:55:38 to 3:56:00( Edit History Discussion )

Olympia Snowe: months this recession could be the longest and deepest since world war ii. we've lost 2.6 million jobs last year, the most since 1945, and the u.s. department of labor is reporting the number of americans receiving unemployment benefits has reached 4.8 million, all-time high since record keeping began in 1967. and that doesn't include the 1.7

3:56:01 to 3:56:21( Edit History Discussion )

Olympia Snowe: million getting benefits through an extension last summer. the chief economist for moody'seconomy.com was advised both senator mccain and president obama stated without stimulus unemployment will rise into the

3:56:22 to 3:56:42( Edit History Discussion )

Olympia Snowe: year. the comitia rank at its -- the economy sha shrank at the fa the current nature of the landscape dictates a comprehensive economic stimulus package.

3:56:43 to 3:57:04( Edit History Discussion )

Olympia Snowe: mr. president, i want to support a stimulus package, but i cannot support just any package. this chamber cannot support just any package. we have a responsibility and an obligation to apply a very rigorous standard to determine whether this approach will help extricate our nation from this cris.

3:57:05 to 3:57:29( Edit History Discussion )

Olympia Snowe: minds are not in agreement or accord on what is the opt muslim stimulus to pursue and what -- optimum stimus to pursue and what it should achieve. business week asked how much does boosting help the private

3:57:31 to 3:57:51( Edit History Discussion )

Olympia Snowe: stpherbgt david eanheart said in an article that such a bill should help the economy in the near term a long term, but the government doesn't spend about 00 billion every day. the details matter. he's absolutely right. the details do matter, thapbd's why this amendment -- and that's why this amendment process is going to be fundamental. and i congratulate the

3:57:52 to 3:58:13( Edit History Discussion )

Olympia Snowe: leadership for allowing an unfettered, unfiltered process with consideration of this legislation. the current c.b.o. director testified on january 27 and said stimulative policies could hasten the economy's recovery and reduce overall loss of output during the ression. that is how effective a fiscal stimulus is.

3:58:14 to 3:58:35( Edit History Discussion )

Olympia Snowe: does it help to bring us out of this recession? in that light, we must not confuse stimulus with omnibus. for those who say we cannot burden this bill with provisions that are not within restrictions of the economic stimulus, i could not agree more. to do otherwise would only k compromise the credibility of any package that may ultimately be enacted. this is a

3:58:36 to 3:58:56( Edit History Discussion )

Olympia Snowe: cris that requires a multidimensional approach. it is absolutely critical that we get it right. already congress has passed a troubled asset relief program, which we all know has its own significant problems. essentially exhausted its own options to improve the economy through monetary policy, having

3:58:57 to 3:59:19( Edit History Discussion )

Olympia Snowe: reduced interest rates to zero, a spwaeugs that hasn't occurred -- a situation that hasn't occurred since the 1930's and let more than trillion to stabilize the economic and financial credit markets. as i said during the mark of senate finance committee's to rember that for us in afting the fiscal policy to meet this historic challenge, there are no do-overs.

3:59:20 to 3:59:42( Edit History Discussion )

Olympia Snowe: we only have so many arrows in our fiscal quiver. so this debat about how much we label as tax relief and how much we label as spending. we must not retreat in our ideological corners or comfort zones. rather it should be about the

3:59:43 to 4:00:03( Edit History Discussion )

Olympia Snowe: merits of the individual whether it delivers the job creation and at the same time provide assistance to those who are have more money so that they are able to spend those funds on their necessities and their daily lives. we must ensure that we can do everything we can to jump-start

4:00:04 to 4:00:24( Edit History Discussion )

Olympia Snowe: this economy, to this -- to front-load this stimulus plan so we can reignite economic recovery. we must ask does this package fit the times? in the words of an editorial that appeared in one of my papers in theome state of maine, the "lewiston home journal" asks right now there is

4:00:25 to 4:00:46( Edit History Discussion )

Olympia Snowe: a country and basic way of life most of all, the country needs a program that works. i ask unanimous consent the entire editorial be included in the record, mr. pre the esiding officer: without objection. ms. snowe: moreover, we must calibrate more carefully the imperative for speed again the ironclad necessity of getting this legislation to the point that we can feel confident that

4:00:47 to 4:01:08( Edit History Discussion )

Olympia Snowe: this legislation, this stimulus plan will begin the process of turning our economy around. because as i said earlier, we only have so many options, we have so many tools in our toolbox. when it comes to fiscal stimulus and what we are considering today, in the united states senate and through the entirety of this week and beyond is that

4:01:09 to 4:01:29( Edit History Discussion )

Olympia Snowe: we will be adding nearly 00 billion to the national debt. and that's before any interest payments in addition to the overall 0.6 trillion debt that already exists. so that means wcannot open the door to permanent spending that exceeds the life and purpose of what is before us today. alice rivlin, the former director of the office of management and budget during president clinton's administration, offered the

4:01:30 to 4:01:50( Edit History Discussion )

Olympia Snowe: following fiscal reality check in her testimony before the house budget committee last week -- ing this outside the budget process, that means no one has to talk about the long-term effects of any of this might be." well let us talk about the long-term effects here and now because it is critical, mr. presidt, that we examine

4:01:51 to 4:02:11( Edit History Discussion )

Olympia Snowe: those programs that will be included in this fiscal stimulus plan that ultimately could end up expanding the permanent expenditures in our budgetary authority. c.b.o. projected a staggering .1 trillion budget deficit over the next ten years, and that's before we pass this initiative that will add, as i

4:02:12 to 4:02:32( Edit History Discussion )

Olympia Snowe: said, 00 billion to the overall total. we all well know c.b.o. assumes that any additional funding levels added for federal spending will also be inserted in the budget baseline and extended in perpetuity with inflation adjustment. so, in other words, this legislation may exist entirely outside the normal budgetary procedes.

4:02:33 to 4:02:54( Edit History Discussion )

Olympia Snowe: but it will now be in c.b.o.'s baseline. so meaning any future reductions will be considered by some to be reductions. therefore, we must ensure that programs that may well be great policy but not economic stilus are not included in this legislation. instead, are vetted through the regular budget and legislative process.

4:02:55 to 4:03:15( Edit History Discussion )

Olympia Snowe: we cannot allow program authority and programs themselves to be expanded that are short budgetary procedures and appropriations in the annual authorization process, because in the end, the legislation that is authorized in this bill with its emergency stimulative

4:03:16 to 4:03:36( Edit History Discussion )

Olympia Snowe: function ends with any continuation only considers in the future through the normal process. so we must not expand programs that otherwise should be included in the budget and through the annual process in both appropriations and authorization. as the concord coalition, among others, called an exit strategy to make sure we

4:03:37 to 4:04:00( Edit History Discussion )

Olympia Snowe: don't create uni consequences that will cause additional economic hardship and harm. on that note, i believe that we deserve from those who support this initiative a breakdown. and i think that we need to demand it and ensure it in the final analysis of this legislation, mr. president, in each of the different titles of

4:04:01 to 4:04:21( Edit History Discussion )

Olympia Snowe: this creation expectations and projections for each provision, for each program, for each tax expenditure? how precisely will they those displaced by the current recession? and will that assistance in and of itself the near term? further, i am working on an amendment that will require the

4:04:22 to 4:04:42( Edit History Discussion )

Olympia Snowe: new recovery accountability and transparency board created in this bill to include in its kwourtly reports -- quarterly reports a specific listing of the bill will recommend the board to recommend for decision the obligated programs that are

4:04:43 to 4:05:04( Edit History Discussion )

Olympia Snowe: not currently creating or cannot be reanably expected to create jobs or help those displaced by the current recession. these provisions will hopefully shine a spotlight on the effectiveness on the new law and create badly needed jobs. the bottom line question must not be exclusively whether a particular proposal in this package is a good idea.

4:05:05 to 4:05:26( Edit History Discussion )

Olympia Snowe: but the bottom-line question is, and the final analysis is will this package work in terms of jump-starting the economy? columnist robert samuelson spoke to that challenge when h wrote in "the washington post" today -- and i quote -- "the immediate need is for a stimulus package to stimula now. it needs to be front loaded. i couldn't agree more.

4:05:27 to 4:05:48( Edit History Discussion )

Olympia Snowe: and i do think it's positive that measures to move money out quickly and effectively such as shortening the normal deadline for federal agencies to commit funds and setting deadlines on federal awarding of formulas, grants, among others so that states and agencies are not sitting on the money, that they're going to be required to distribute it and

4:05:49 to 4:06:09( Edit History Discussion )

Olympia Snowe: expend it within a given period of bill should be temporary and obviously has to be expended in order to have an impact and influence on the economy. as we heard last year from c.b.o., extending unemployment benefits is a preeminent fiscal tool.

4:06:10 to 4:06:30( Edit History Discussion )

Olympia Snowe: as it concluded, its cost effectiveness is large. the length of time for impact is short and that the uncertainty about the policy effects is small. we knowhat extending unemployment benefits does work. it does provide the maximum stimulus. we have heard that moody'seconomy.com is estimating

4:06:31 to 4:06:51( Edit History Discussion )

Olympia Snowe: recently that every dollar spent on unemployment benefits generates 1.663 in near-term g.d.p. i'm package did billion to extend unemployment insurance, and i'm also pleased that the finance committee included my measure -- and i thank the chairman for including it.

4:06:52 to 4:07:13( Edit History Discussion )

Olympia Snowe: the first ,400 of unemployment benefits will be excluded from taxation to further provision stimulative effect. on the tax side, the finance package also includes a payroll tax credit pay tax credit for more than 95% of working families in the

4:07:14 to 4:07:35( Edit History Discussion )

Olympia Snowe: united states, which mark zandi, once again has said will be particularly effective as the benefit will go to lower-income households that are much more likely to spend any tax benefit they receive. i'm also pleased that senar grassley was able t provision which is absolutely important to middle-income tax-payers in america, and that

4:07:36 to 4:07:59( Edit History Discussion )

Olympia Snowe: is further addressing the alternative-minimum tax, which is egregious and an on so many millions of taxpayers across this country certainly it would make it less effective. it would make the tax credit of 00 and ,000 less effective if the alternative-minimum tax were applied.

4:08:00 to 4:08:21( Edit History Discussion )

Olympia Snowe: was included overall, which basically adds another 0 billion worth of tax relief to middle-income america. the finance portion also includes increasing eligibility for the refundable portion of the child tax credit that senator lincoln and i have advocated and championed over the years. we have included this child tax

4:08:22 to 4:08:42( Edit History Discussion )

Olympia Snowe: credit going back to 2001 in the original tax plan. this does reach low-income families earning between thousand and 2,667 a year. now i've heard arguments before about refund ability. and people will say, well, no, we should not provide funding to those families who don't pay

4:08:43 to 4:09:04( Edit History Discussion )

Olympia Snowe: taxes, that they don't have a federal tax liability. well, i will point out that although these people may not earn enough to have a federal tax liability, mr. president, they do work and they do contribute to local payroll taxes and, therefore, will get additional money into the pockets of those most likely

4:09:05 to 4:09:26( Edit History Discussion )

Olympia Snowe: to spend it. now, afterall, low-income families earning between ,000 and 2,600 on an annual basis, denies that they should have benefits under this legislation, i don't think that anybody can deny that they can'tpe

4:09:27 to 4:09:49( Edit History Discussion )

Olympia Snowe: money and it won't be stimulus. i do believe they deserve to be a part of the stimulus plan. i also believe creating jobs over the short term will provide for the long term not mutually exclusive goals. to the contrary, i'm that the finance committee package included tax provision that's i've offered to assist

4:09:50 to 4:10:11( Edit History Discussion )

Olympia Snowe: small businesses t operation of employees. in particular we extend the small business expensing to 50,00 investments. afterall, small businesses will be the lifeline to job creation as they have been in the past since they create a net two-thirds awful jobs of all jobs created in america.

4:10:12 to 4:10:32( Edit History Discussion )

Olympia Snowe: they will be the this economic recovery. so it is important to extend the provision of 50,000 as well as provide a five-year net operating loss carried back to firms and giving them an immediate tax refund that they can use to sustain operations that hire new employees,

4:10:33 to 4:10:54( Edit History Discussion )

Olympia Snowe: ot and i underscore this, this ensures that those receiving federal money under the rescue plan under tarp will not be able to take advantage of the additional taxpayer resources. we must neither neglect or forget the the rural community, we included

4:10:55 to 4:11:16( Edit History Discussion )

Olympia Snowe: an additional .5 billion in 2008 and 2009 for the new market tax credits. i'm told that the community development financial institutions fund which administers the incentive can allocate the 2008 credit authority within 60 days which will jobs an 35,000 construction jobs. and since this is the only thing

4:11:17 to 4:11:41( Edit History Discussion )

Olympia Snowe: that we don't want temporary in this package is the jobs it creates, this proposal will place americans on the vanguard of jobs in the future wh the extension of the renewable energy tax credits to promote green technology which will be crucial mr. president as nations emerge from this global economic downturn.

4:11:42 to 4:12:04( Edit History Discussion )

Olympia Snowe: in fact, if we hadn't dithered extension of the renewable tax credits at the beginning of 2008, we would have already been been on the road to creating 100,000 new jobs, and i have heard a lot of arguments against renewable tax credits saying it is not stimulative. we're in the midst of a global downturn and every country on earth is going to compete for

4:12:05 to 4:12:26( Edit History Discussion )

Olympia Snowe: the jobs in the 21st century, determing what is the best path to create the new jobs and i vestments in green -- investments in green technology is on the forefront of job creation. i want to make sure that this country is in the vanguard when it comes to creating the jobs of the future. certainly making investments in renewable energy sources is

4:12:27 to 4:12:48( Edit History Discussion )

Olympia Snowe: going to be so critical and so essential to job creation and to competing with other nations as they attempt to from the global downturn. in fact, these renewable credits will create more 89,000 more jobs by giving certainty to companies that can

4:12:49 to 4:13:09( Edit History Discussion )

Olympia Snowe: start now on projects of the important incentives to grow. there are a number of projects in my state maine that are postponed and placed on hold because they can't receive the tax credits or financial institutions suspended their loans or lending opportunities,

4:13:10 to 4:13:30( Edit History Discussion )

Olympia Snowe: it denied these companies from moving forward on projects that they have wanted to pursue over the last few months. these are major projects that will create thousands of jobs in my state and so many states across the country. that's why this investment in renewables is going to be essential to job creation. mr. president, considering the

4:13:31 to 4:13:53( Edit History Discussion )

Olympia Snowe: entirety of the stimulus package, both tax and spending, and its ability to have an immediate impact, c.b.o. has now reported that of the current 86 billion, 94 billi current 86 billion, 94 billi on or 78% spes out in 2008 and 2009.

4:13:54 to 4:14:14( Edit History Discussion )

Olympia Snowe: yet on the purely spending the spendout is 49%, and i believe we can and must do better. further are more, mr. president, i say there are allocations that do not belong in the stimulus package. do we really need to includ include 75 million for cerveny ration research at the national institutes of standard

4:14:15 to 4:14:38( Edit History Discussion )

Olympia Snowe: technology in this legislation, billion for advanced battery and manufacturing, 35 million for the management of lands and resources. there are many more examples in this legislation that should be identified as ones that should go through the normal budgetary process. there are other provisions

4:14:39 to 4:15:00( Edit History Discussion )

Olympia Snowe: unreqifably worthy of -- unreqif kaably of strong support. we have to identify them as to whether or not this is the appropriate vehicle for their consideration. i would say not. i'm hopeful in the final analysis we can further address this pivotal matter of nonstimu the amendment process over the coming days as "the new york times" columnist david burke

4:15:01 to 4:15:23( Edit History Discussion )

Olympia Snowe: crow, the package is -- wrote, the packa part timely, part untimel targeted and part unt as he also defendantly pointed out, leadership involves prioritizing. so i think that we will have to work in dates ahead on both sides of the political aisle to fer amendments, to bring a

4:15:24 to 4:15:44( Edit History Discussion )

Olympia Snowe: account ability to this to bring both sides together a to developing the kind of consensus that is going to restore the integrity and confidence in the packa that we ultimately pass. the presiding officer: the senate's time has expired. ms. snowe: mr. president, may i ask for an additional employee -- for an additional three minutes? the presiding officer: without objection.

4:15:45 to 4:16:06( Edit History Discussion )

Olympia Snowe: ms. snowe: thank you. as ranking member ofhe senate committee on small business, i'm pleased that there is multiple small business lending provisions that i think are critical to the legitimate object toifs this -- objectives to this administration, which is to create jobs. in terms of

4:16:07 to 4:16:27( Edit History Discussion )

Olympia Snowe: package with respect to one provision that i think is critical that has been part of the finance package, and that is, of course, expanding the medicaid program to assist states all across this country. now, i've heard arguments that many have this i

4:16:28 to 4:16:48( Edit History Discussion )

Olympia Snowe: is not appropriate to include additional funding to medicate -- medicaid assistance to the states. there are 45 states that are facing significant budgetary shortfalls with a combined budgetary gap of 50 billion. are we suggesting that this would not have a profound impact on our national economy if

4:16:49 to 4:17:10( Edit History Discussion )

Olympia Snowe: 45 states obviously didn't have to make some drastic decisions under any circumstance, but even more so if we did not provide billion that's finance committee assist the state? in fact, i think it's going to be critically important that we do so because otherwise they will have to raise taxes and cut

4:17:11 to 4:17:31( Edit History Discussion )

Olympia Snowe: spending dramatically that obviously will have a tremendous and consequential state of theconomy leading it more job losses and a more severe downturn. so as we know states are required by their constitutions to balance the budget, so, obviously, they will have to resort reducing spending.

4:17:32 to 4:17:52( Edit History Discussion )

Olympia Snowe: so i think t obligation to be a strong federal partner in assisting when it comes to medicaid, but, afterall, not difficulty with the increasing caseload and costs and the burgeoning caseload because of job losses. so i think it is important that

4:17:53 to 4:18:15( Edit History Discussion )

Olympia Snowe: we provide assistance and for every 1% increase in unemployment, an additional one million americans will qualify for medicaid or the children'sâ– â– health insurance assistance under the current enrollment criteria. but i also think that we should impose some conditions on the states, one, that they should not be able to expand their

4:18:16 to 4:18:37( Edit History Discussion )

Olympia Snowe: they should maintain their existing benefit coverage. that, secondly, that we should require prompt payment, that they can't sit on those -- you know, on those payments, but, rather, within a timely within 30 days they have to reimburse providers for that care. because delays in payments to providers can ultimately

4:18:38 to 4:18:58( Edit History Discussion )

Olympia Snowe: threaten their operations, limb tear ability to -- limit their ability to their investments an tear care of their patients or have to cut back substantially which will have an impact on the economy. time is of the essence, so is the obligation to get this right to the bes

4:18:59 to 4:19:19( Edit History Discussion )

Olympia Snowe: hopefully we can achieve a broader, bipartisan bill. one that is going to achieve the legitimate objectives of job creation, of stimulus and assisting those who have been displaced as a result of the downturn in the economy. these goals are not mutually exclusive. in fact, i think they're ones

4:19:20 to 4:19:31( Edit History Discussion )

Olympia Snowe: that could be easily accomplished as we go through this process if we all agree in the final amalsays that we need to move -- analysis that we need to move forward with a package that will meet the times