Serrano Statement at Committee Markup of 2015 Financial Services & General Government Appropriations Act

June 25, 2014
Press Release
Serrano Statement at Committee Markup of 2015 Financial Services & General Government Appropriations Act

Thank you, Chairman Rogers.

Let me begin by thanking Chairman Crenshaw for his efforts to conduct this subcommittee in a fair and bipartisan manner.  We do not always agree on everything, but you are always willing to listen to our side, and you have made efforts to accommodate our side's priorities.

Unfortunately, I think Chairman Crenshaw has been dealt a difficult hand with this bill.  This subcommittee received a totally inadequate 302(b) allocation compared to our funding level in fiscal year 2014 onmibus.  The bill is $566 million below the level agreed to in the fiscal year 2014 omnibus.  This cut is equal to 2.6 percent of the bill, a level that no other subcommittee has been forced to take. The result it is that there are several agencies in this bill that are inadequately funded.

Despite this insufficient allocation, I do want to point out several areas this bill that has made improvements upon.  The CDFI Fund is funded at $230 million, an increase over last year.  The Small Business Administration also receives adequate funding for several important programs, including the Microloan program, the PRIME program, and the Small Business Development Centers.  Our Federal Defenders are funded at slightly over the revised request level.  And lastly, the bill allows for a cost of living adjustment for wage grade employees.

However, I think these areas are unfortunately overwhelmed by the problematic portions of the bill.  A major concern is the funding level for the Internal Revenue Service, which is funded at $10.95 billion, a cut of $341 million below last year.  This means the agency would operate at a level that is below sequestration.  I do not know of another agency that is asked to take a cut to a level below the sequester.  But I do know the reason why: yet another misguided attempt to punish the agency for the problems associated with the 501(c)(4) unit, and to hamstring it during the implementation the Affordable Care Act.  Unfortunately, the real result of this cut will be to simply prevent the agency from collecting money from tax cheats, and to increase our deficit as a result.

The Securities and Exchange Commission is also severely underfunded at a level of $1.4 billion.  This is $300 million below the request, and is simply insufficient to allow the agency to properly oversee Wall Street and protect investors.  Both parties have created additional responsibilities for the SEC in recent years, but funding has not kept pace.  If we keep asking the agency to do more with less, then we cannot be surprised if we experience another financial crisis.

Additionally, for the first time since 1983, this subcommittee did not include a requirement that the Postal Service maintain six day delivery.  I am highly disappointed that we have not included this important and longstanding provision that has bipartisan support.  Today, I will join with Mr. Latham to offer a bipartisan amendment to restore this long-standing provision. Millions of Americans depend upon reliable six-day delivery, especially the elderly and those living in rural areas.

There are numerous other cuts to the bill that are harmful as well, including the elimination of the Election Assistance Commission and a funding cut to the DC TAG program. 

However, I believe that the biggest impediment to reaching compromise on this bill is the large number of partisan riders that continue to be attached to this bill.  Let me name just a few of the more excessive, all of which are major concerns to our side of the aisle.

There are riders preventing the IRS from implementing the Affordable Care Act, and from reforming the 501(c)(4) regulations which have caused so much confusion and abuse.  There are riders needlessly and baselessly attacking the President on signing statements and on executive orders. There is a rider limiting Americans ability to travel to Cuba on people-to-people visas.  There is a rider preventing the SEC from requiring publically-traded companies to disclose their campaign donations to their shareholders even though there is no indication that the agency has plans to do so.   And there is a rider preventing the District of Columbia from using its own funds to provide legal abortion services to low-income women.

This is by no means an exclusive list.  The number of riders attached to this bill goes on and on and on.  We have spent a lot of time this year discussing how to ensure that we return to regular order.  I would suggest that it is extremely difficult to do so when the majority attempts to pack legislation with a laundry list of partisan priorities.  This is irresponsible governing at best.  The end of the fiscal year is quickly approaching, and instead of working towards compromise, the majority has chosen to create obstructions that will make it more difficult for the Appropriations Committee to complete its work.  And we wonder why Congress has such low approval ratings.

Our side will attempt to remedy some of these defects with amendments today, although with the inadequate allocation, it will be difficult to do so.  Unfortunately, as it is currently written, this is not a bill that I can support.

Before I finish, let me take a moment to thank the staff on both sides of the aisle for their hard work on this bill.  They have all devoted many hours to creating this bill and report, and I know I speak for all the members on our side when I say that we are grateful.

Thank you, Mr. Chairman.

113th Congress