House chairman makes deal to avoid cuts in employee benefits
House Government Reform Committee Chairman Tom Davis, R-Va., has maneuvered to avoid having to cut $39 billion from federal employee benefits programs. But the cuts will have to come from other agency spending.
Early Friday morning, the House passed a $2.2 trillion budget plan for fiscal 2004 that embraces the president's entire $726 billion tax cut package. The plan passed on a 215-212 vote.
The bill requires significant cuts in federal spending to accommodate the tax cuts. But House GOP leaders made a deal with Government Reform Committee Chairman Tom Davis, R-Va., who would be forced to make some $39 billion in cuts to programs under his jurisdiction. Davis feared that he would have had to make cuts to federal employees' pension programs.
But Davis said Thursday he was able to secure an agreement that would "broaden the definition" of what would be allowed to count toward his total cuts-namely, savings from federal procurement reforms and savings achieved through agency reorganization.
In a colloquy on the House floor Thursday night, Davis convinced Budget Committee Chairman Jim Nussle, R-Iowa, that the Government Reform Committee could meet its savings target without touching retirement benefits. Instead, the committee will get credit for savings resulting from legislation to improve the efficiency of federal operations, including legislation that achieves savings in discretionary programs.
"Our committee has a clear plan for reducing waste, fraud and mismanagement in the federal government-a plan that will result in huge savings year in and year out," Davis said in a statement. "Achieving savings through procurement reform and agency reorganization makes a lot more sense than making drastic cuts in benefits to federal employees."
Republican leaders told GOP moderates Thursday that while they may have disagreements over spending levels and tax cuts in the resolution, they should nonetheless support it to keep the budget process moving.
"The process can't come to a stop," said Rep. Sherwood Boehlert, R-N.Y., who voted for the plan.
Boehlert, like other moderates interviewed Thursday night, said they were counting on the Senate eliminating parts of the resolution they dislike-such as an estimated $100 billion cut to Medicaid over 10 years.
"The bill that passes the House will not be the one that passes in conference," Boehlert said.
The House rejected two budget alternatives in voting late Thursday. The first, by the Blue Dog Coalition of conservative Democrats, failed 274-174. Another, by the conservative Republican Study Committee, failed 342-80. Ten Republicans voted for the Blue Dog resolution.