American Rescue Plan Act of 2021
Floor Speech
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Mr. MANCHIN. Madam President, my good friend the Senator from Indiana--I am hoping this is a misunderstanding, and I hope I can explain it because I was very much involved in this process.
First of all, as a former Governor, I know about the budget process. I know about balanced budgets. I used to meet every Tuesday afternoon. As Governor, I would have my finance people come to my office, and we would sit down and look at the revenue estimates. We had to make adjustments because we had a balanced budget amendment. Isn't that a novelty, a balanced budget amendment? We had to live within our confines. That is something that no one who has ever been in State government or ever run a business understands. I understand that. But it is something that we did very religiously.
The language in this bill, Senator from Indiana, the only thing this bill does--or that language you were concerned about, the only thing it did--you can cut all you want to. You can manage all your money the way you want. You just can't take Federal money and use it if you cut your revenue intentionally. That is all. What we try to do is target where the money has gone.
So the Treasury, you have to go--as a State, you go to the Treasury, and you show the need that you have. You show the cost--what COVID has cost your revenue and you are able to have money to replace that because COVID caused you that problem.
You have also the ability to use this, in your State, for three things: water, sewer, and internet service. So you have infrastructure that can be done.
Also, what we did in this bill is we have it going out to 2024, so you are not going to overheat, if you will--overheat or overcharge the economy. They can spread that out. The State and local moneys go in two tranches: Half this year, half next year is what you can access. The money to every one of your communities--for the first time, 40 percent of that total money goes directly, so your large cities will get money directly from the Treasury. They have to show how they are using it for their backfill, not, basically, having anything to do with what their tax revenue is. They just can't use this money to backfill tax cuts if they want to do that. That is pretty simple because there is not a need for it. If you can reduce your taxes, then you don't need Federal dollars to backfill to show that you are in good shape. But if you need it for anything else, you can use it for that. You can use it for all these things.
I can tell you--I would assure you that every incorporated city in Indiana, every county in Indiana has to be thrilled. They have to be thrilled for the first time to have control of their destiny. That was our intention.
In the first CARES package, that never happened. The first CARES package went directly to the Governors, and if the Governors were very prudent in how they did it--set up a committee, worked through the legislature--some did, some didn't, and there is a lot of money that never got into the basic fibers of your State or my State. Now that is not going to be the problem.
Also, they have the ability, if they have a water project they have been trying to do forever and never had the resources to do it, they can use their money for that.
If they have a sewer project--I have said this: How do we pick water, sewer, and internet? They are not the sexy things that, basically, Governors and politicians go out and cut ribbons for--a sewer line or a water line that is buried 50 feet down. That is not a sexy thing.
We knew the infrastructure was falling apart city by city and the ages of water lines are over 80 years in most of our cities. So we tried to do something.
They have until 2024, so they don't have to throw it out. It is not shovel-ready. It is a project you have been wanting to do but never could afford.
I assure you, we do not want to impede good fiscal management to make adjustments to do whatever they want to their tax codes. This does not prohibit that. It just prohibits using and going to the Federal Treasury and saying: I have a loss of revenue because I cut $100 billion or I cut $100 million or a billion dollars out of my State budget when I reduced taxes, and now I can't pay my bills.
Also, you can't use this money from the Federal Government for your pensions. That is a responsibility that we have. We call it OPEB, other postponed employment benefits. OPEB is other postponed employment benefits--pensions, healthcare, all the things that when a person retires from their State, these are things that the State has a contract and an obligation for them in their retirement. It is the responsibility of the States to manage that, and that, basically, keeps the State in a good financial position. It keeps your credit rating up or your credit rating low if you have managed yourself through it. This is only to help you with expenses and extraordinary expenses that you incurred during COVID. That is all, sir.
I don't want the State of Indiana or any State to think that they can't do whatever they want to with their taxes. They just can't use the Federal Treasury to backfill something done deliberately, basically, or self-inflicted--a loss of revenue. That is about it in a nutshell.
COVID-19 is the greatest challenge we have ever had. I know you mentioned a few things. I will tell you this because my dear friend from Maine is sitting here. We met quite a bit on the bill in a bipartisan way, even though a lot of it did not get in. The bill was bigger than what my friends--all of you, my friends on the Republican side--could basically vote for. I understand that.
But please understand there are an awful lot of things we talked about that I did everything in my power to make sure the tranches-- spreading them out, not going it all at one time. There is the RESTAURANTS Act. Senator Wicker and Senator Sinema were on the RESTAURANTS Act. There was, basically, the homeless children's bill that Senator Murkowski and myself put in there. There was bipartisanship in that.
There should have been a lot more; I agree. We both know the process sometimes doesn't work the way we want it to. But you make every effort you can to make it work. I did that. Whenever I talked, I said that this had bipartisan input. It didn't come out as a bipartisan vote, but there was bipartisan input into this piece of legislation, the best we possibly could.
I think it is a piece of legislation that we--if you have education, there is not a school in America today that should not be able to have a program where they can make their school the safest environment that a child should be in. Every parent should be safe in thinking their children are in a safe place because of heating, ventilation--things that we have in this bill that allow education to have the resources it needs and, also, your higher education too.
The money that is going out--you have money going to the stimulus payments, going to all of your citizens at $75,000. We put a hard cap. We tried it to put a hard cap at $75,000 and $150,000. We found out the first CARES package--I don't think that anyone on the Republican side or the Democrat side thought someone making $200,000, $300,000 would be getting money. They didn't need a check, but we found out it happened. We didn't intend for that to happen. That is the way the code read, and that is the way it kind of slipped into that. We stopped that from happening here.
So we tried to do everything--and that, again, came from our bipartisan group. If it wasn't for the bipartisan group talking and saying ``This is something we can't do,'' I would have had things I might have missed. I wouldn't have known some things that were of concern to all of us and some of the atrocities that happened that we didn't want to repeat. We did all the things we could to stop that.
I am very reluctant to object to any of my Senators, my fellow Senators, but on this one, sir--if I can work with you on this--I am objecting because I want to have a productive sit-down with you and we can work on something together.
Please tell your Governor that he can cut away if he wants to. He just can't go back to the Federal Government and say: OK, I made a mistake. Now I need your money.
That is about it in a nutshell. If Indiana can cut and it helps you and grows your economy, God bless you. If you have COVID expenses, we are going to help you. If you have projects--my goodness, just infrastructure projects--then there is no impediment there if you have internet services you need, if you have water services, and you have sewer services.
In West Virginia, what we are trying to do right now is put a team together that can basically work from this. The State has money for those three tranches of infrastructure. The counties have it, and the municipalities have it. The unincorporated towns that aren't able to get money directly are going to count on the county and the State.
There is so much good to be done to make it work for you to make sure they understand. They are elated to now have a project they never could finish, like upgrade your services, finish your water line, have internet service you have never had before. These are all unbelievable opportunities that we have never had.
The bipartisan SMART Act that was filed in May 2020 included both of these guardrails, plus another one required maintenance of effort. We have that in there. Maintenance of effort--we put that back then.
The Bipartisan State and Local Support of Small Business Protections Act that was released last December had exactly the same language. This is not new language, sir. This is the same language that has been there.
They have never been able to backfill for, basically, discretionary cuts that they made themselves. It doesn't prohibit them, the same as it doesn't prohibit anybody in their State for having--and being a former Governor, I am very partial to the 10th Amendment to the Constitution, States rights. You have those rights. Now you have the assistance also with those rights.
I am hoping to improve everyone's situation. I know it does in West Virginia. I hope it does in Maine. I hope it does in Indiana, and I think it will.
It is all about making these emergency funds get to the right people. We are trying to target it. It is something we have to keep an eye on. I can tell if we do it and do it right and we are good stewards, this will get us through this COVID challenge that we have because we really don't know.
I am hoping we come out of this guns ablazing in July--we come out of this, and the economy takes off like a rocket. Sometimes when they take off, they tend to level off too.
We want to make sure we are still out there for 2022, 2023, out to 2024. And if they do it and do it right, they can. They can finish their projects and be able to have the moneys as needed for emergencies if it has a dip.
With that, we thought we had worked something, but the language is nothing new. It is not a surprise. It was not anything that was put in; it has been in there. Basically, it is language that spells out pretty directly how you can use your money and what money you can't acquire. That is the only thing we did.
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Mr. MANCHIN. Yes, there is objection.
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Mr. MANCHIN. Will the Senator yield?
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Mr. MANCHIN. First of all, I did have a nice conversation with Governor Justice. He and I have disagreed on basic issues on Tax Code legislation, and we are trying to work through all of that. I explained it to him. I said that it doesn't do a thing in that it doesn't impede you at all. If you want to cut, go ahead and cut. He is still moving through with the legislation. He might succeed on that, and he might not.
With that, I will make it very clear that this is not new language. You cannot backfill. You cannot backfill. The only thing you can use your money for is for COVID expenses. Basically, if your revenues were down through no fault of your own, business dropped off, and your tax collections were down through no fault of your own, then that is what this is for. COVID caused you a problem. It caused you an imposition and put strain on the services that you are basically providing to the people of West Virginia and Indiana.
We want to make sure that your first responders are there and your education is there, that everything is still running the way it is supposed to. That is why we have passed five bills in trying to keep things afloat, and we think we have done that. So it does not impede that whatsoever. We have also looked at it constitutionally, and we are solid on the Constitution.
All we are asking is, does the Federal Government have a responsibility to backfill with Treasury dollars a decision that could be self-inflicted? That is all. You should live with that or my State should live with it or reap the benefits. We are not penalized. Even if your revenues went up, you still had COVID expenses you could offset. Those were legitimate expenses that you incurred during the COVID-19 pandemic. The COVID-19 pandemic is what we are talking about. So if your revenues went up after that, we are not penalizing you. If they went down, that is a whole other story because COVID caused that, but you just can't cause it yourself. I think this is it in a nutshell.
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Mr. MANCHIN. Yes, I will yield.
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Mr. MANCHIN. Will the Senator yield?
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Mr. MANCHIN. Senator Braun has always been very kind and very reasonable, and I look forward to sitting down with him on this.
What he has said is absolutely correct in that we are not penalizing. We don't intend to penalize anybody who has made that decision, but the Senator is talking about a State that has a balanced budget amendment year in and year out. There is a time when a Governor has to make a decision and go to his legislature and say: Hey, we are going to be X amount of dollars short, so we need to cut. So they start cutting and cutting services. That is what happens in order to balance the budget usually--services are cut to the people.
We are just saying in our piece of legislation here that we have that we don't want that to happen because it is of no fault of your own, but if you cut your taxes and you are thinking, well, 5 years down the road, we are going to have more revenue, then that is fine. You just can't backfill for that short period of time and use it for something for which you have cut revenues, basically, in a self-inflicting way. It might be a self-ingratiating way to where it will help you down the road, but you still can't backfill for that.
Now, for any COVID expenses you have, absolutely, you can fill that hole. Show that you have had COVID expenses. If you were to say, ``OK. We filled all of our holes for COVID, and now we have water, sewer, and internet''--and trust me, there is not a place in Indiana or in West Virginia that doesn't need help there.
I thank the Senator. I appreciate it
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