Kent Conrad

Mr. CONRAD

Mr. CONRAD. Mr. President, today I recognize a community in North Dakota that will be celebrating its 100th anniversary. On June 29-July 1, the residents of Noonan will gather to celebrate their community's history and founding. Noonan is a thriving rural community in northwest North Dakota that shares a border with the Canadian province of Saskatchewan. Noonan holds an important place in North Dakota's history. Like many of the rural communities in North Dakota, Noonan began its history as a community with the arrival of the Great Northern Railroad. Noonan received its name from Patrick Noonan, the first mayor of Noonan. The first businesses in Noonan included the Golden Rule General Store, an implement store, and a hotel. Noonan officially became a city on September 14, 1928. Today, the community of Noonan is largely based on agriculture and is home to some of the best waterfowl and upland game hunting in northwest North Dakota. There is also a volunteer fire department and EMT service, two taverns, and many other businesses in this close-knit community where everyone knows everyone. The nearby Noonan trout pond offers camping and fishing. Noonan is also home to a prominent Lions Club chapter, which is the oldest service organization in Noonan and whose main goal is to help the blind. The community of Noonan is a wonderful place for its residents to live, work, and raise future generations. The people of Noonan take pride in their community and all the opportunities it has to offer. The town has an exciting centennial weekend planned that includes dances, a parade, variety show, a Sunday brunch, and much more. I ask the Senate to join me in congratulating Noonan, ND, and its residents on their first 100 years and in wishing them well through the next century. By honoring Noonan and all other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Noonan that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. Noonan has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. Mr. President, today I wish to recognize a community in North Dakota that is celebrating its 100th anniversary. On July 3-8, the residents of Hettinger will gather to celebrate their community's history and founding. Hettinger is a vibrant community in southwest North Dakota. Hettinger holds an important place in North Dakota's history. The townsite was founded in 1907, and Erastus A. Williams of Bismarck, whose son-in-law was Mathias Hettinger, was credited with naming the community. It became the county seat of Adams County in 1907. The post office was established in May 17, 1907, and Hettinger was organized into a city in 1916. One of the last living survivors of the Titanic, Ole Abelseth, was a longtime resident of Hettinger. Today, Hettinger is a magnet for outdoor enthusiasts who come to enjoy bird watching, fishing, and big game hunting. Nearby Mirror Lake offers camping and other outdoor activities for all ages. In 2004, Hettinger was recognized as Hometown of the Year by the Bismarck Tribune and it received the North Dakota Capital Community Designation by the Federal Home Loan Bank, which recognized Hettinger's vision and planning in sustaining and revitalizing the local economy. The people of Hettinger are enthusiastic about their community and the quality of life it offers. Hettinger has a wonderful centennial celebration planned that includes dances, a steak fry, a lumberjack show, a parade, a horseshoe tournament, class reunions, and a whisker growing contest. The week long celebration will definitely be one to remember. Mr. President, I ask the U.S. Senate to join me in congratulating Hettinger, ND, and its residents on their first 100 years and in wishing them well through the next century. By honoring Hettinger and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Hettinger that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. Hettinger has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased to recognize a community in North Dakota that will be celebrating its 100th anniversary. From June 29-July 4, the residents of Bowman will gather to celebrate their community's history and founding. Bowman is a quaint town of about 1,500 people nestled in the southwest corner of North Dakota. It was founded in 1907 and is named after William Bowman, the territorial legislator, after whom the county is also named. Today, Bowman is the county seat of Bowman County. It is also home to the Pioneer Trails Regional Museum, which preserves the rich history of the community and surrounding area. Bowman lies in an area of the state that has a number of fossils that are millions of years old. In fact, within the last few years, paleontologists uncovered the fossils of a tyrannosaurus rex. Bowman also plays host to the Bowman County Fair, an annual day fair with live music, games, and other events that adults and children can enjoy. For those who call Bowman home, it is a comfortable place to live, work, and play. The people of Bowman are enthusiastic about their community and the quality of life it offers. Bowman won the City of the Year 2006 award from the North Dakota League of Cities. The community has a wonderful centennial weekend planned that includes school reunions, a golf tournament, local musical entertainment, and much more. Mr. President, I ask the U.S. Senate to join me in congratulating Bowman, ND, and its residents on their first 100 years and in wishing them well through the next century. By honoring Bowman and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Bowman that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. Bowman has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased to recognize a community in North Dakota that will be celebrating its 125th anniversary. From June 28 to July 1, the residents of Ellendale will gather to celebrate their community's history and founding. Ellendale is a community of about 1,550 on the border between North and South Dakota. It was founded in 1881 in anticipation of the Milwaukee Road Railroad. It was the first white settlement in the county and, as the first stop on the railroad in the region, it became a great distributing point for settlers' supplies. It was named in honor of the wife of Milwaukee Road Rail Road official S. S. Merrill. Today, Ellendale is the county seat of Dickey County. It is also home to an Opera House which, at one time, was the largest between Minneapolis and Seattle. The Organization of the People in Ellendale for the Restoration of the Arts hopes to reopen the Opera House, which is currently undergoing restoration, so that it can, once again, have live productions. In addition, the Cole Memorial Museum hosts numerous artifacts and memorabilia showcasing the Ellendale area. For those who call Ellendale home, it is a comfortable place to live, work, and play. The people of Ellendale are enthusiastic about their community and the quality of life it offers. Nearby Pheasant Lake offers a wealth of recreational opportunities from fishing to boating to camping. The community has a wonderful quasquicentennial weekend planned that includes school reunions, a Walk of Fame inductee banquet, a golf tournament, and a Historical Pageant. Mr. President, I ask the U.S. Senate to join me in congratulating Ellendale, ND, and its residents on their first 125 years and in wishing them well in the future. By honoring Ellendale and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Ellendale that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. Ellendale has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. I ask unanimous consent to speak about the passing of our colleague.

Mr. CONRAD. Madam President, I was deeply saddened to learn last night that Senator Thomas had lost his courageous battle against leukemia. Over the years, Craig and his wife Susan have become very good friends to both me and my wife Lucy. I will greatly miss him in this Chamber and, more than that, as a friend. Senator Thomas and I cochaired the rural health caucus. We have worked closely, along with our staffs, on rural health care issues. You couldn't find a more decent and honorable person than Craig Thomas. He is from Wyoming; I am from North Dakota. We didn't always agree politically, but we always got along. I always felt I had a friend in Craig Thomas. On health care, he and I partnered over several years to produce comprehensive legislation to improve reimbursement levels for health care providers in rural areas. During the legislation that passed on comprehensive drug legislation, there were provisions included to, for the first time in many years, improve reimbursement for rural providers. It is not well known in the country or perhaps even in this Chamber that rural institutions often get one-half as much to provide the same treatment as more urban institutions. Senator Thomas and I focused on those issues in the Finance Committee. Much of the legislation that was included in the comprehensive drug legislation to for the first time address that unfairness in reimbursement was legislation Senator Thomas and I had offered. We spent hours and hours together agreeing on the elements of these legislative packages. Our staffs worked closely together. They became friends. This week we were planning to introduce together the latest version of our comprehensive rural health care legislation. This week will be a poignant one for me and my staff as we consider what might have been. In the Senate Finance Committee, Craig and I worked closely together on other issues that are important to our States. We had a shared interest in the impact of trade on U.S. agriculture, whether it was unfairly subsidized foreign sugar or the Japanese and Koreans unfairly blocking exports of American beef. We also shared a deep interest on energy policy because Wyoming is an energy State, as is North Dakota. We worked together to boost transmission capacity and to support clean coal technologies and to develop coal to liquid fuel technologies. I can tell you Craig Thomas was a determined and principled Member of this body. He had real convictions. They were never far from his heart. Craig Thomas was somebody who cared deeply about the people of Wyoming and the people of this country. He also was someone who could understand that others might have a different point of view. While Craig Thomas might not agree with you, he was willing to listen. He was always willing to debate, but to do it in a gentlemanly way. I knew many times when Craig and I were debating legislation we were going to introduce, there were simply places he wasn't going to go. He was not going to go against certain deeply held principles. But he was willing to have a discussion about how we might accomplish the goal. That is something I admired deeply about Craig Thomas. He was a tenacious advocate for improving health care for the many rural communities in his State and across the country. He was a fierce fighter for the people of Wyoming. Nobody could ever doubt that. He brought that same strength and tenacity to his fight with leukemia. Although he must have been in pain in the last several weeks, he never let it show. In fact, one of the last conversations I had with him was right here in the corner of this Chamber. I asked him how he was doing. He was upbeat and positive. I sensed he was on the mend. So it was a real shock to me to find out last night that we lost him. He continued to the very end to pursue his goals with courage and strength and as a true gentleman. We will miss Craig Thomas as a friend and a colleague. We will miss that wry sense of humor. We will miss his ability to find amusement in the daily workings of this body. Most of all, we will miss his quiet smile and that twinkle in his eye, because all of us know that is the Craig Thomas who became our very good friend. Lucy and I express our deepest condolences to Susan and to his four children and to the larger Thomas family. We also take this moment to express our condolences to his very dedicated, loyal, and highly competent staff. Craig Thomas had around him people with the same qualities he demonstrated, people of quiet dignity and people of real competence who worked very hard for the people of Wyoming and this country. I yield the floor and suggest the absence of a quorum.

Mr. CONRAD

Mr. CONRAD. Mr. President, today I recognize and honor my friend Lynn Clancy, who retired in January after 20 years of service as my State director. He is a friend to me, and he is a friend to North Dakota. Over two decades as my State director, Lynn touched the lives of thousands of North Dakotans. He handled countless casework requests and hundreds of speeches and appearances on my behalf. I could not have had a better ambassador. Twenty years in itself is a lifetime of public service, but the 20 years that Lynn spent with me was really the culmination of a much longer career in service to the public. This is a man who genuinely lives on the tenant that it is best to do good to your fellow man. He devoted his life to helping other people. Not many know this, but when Lynn joined my staff after my 1986 election, he was working as the right-hand man to the Catholic bishop of North Dakota, overseeing operations in the diocese. And that was after a long career serving North Dakota's farmers. So he came to work for me with an already long history of public service. That public service began after Lynn graduated with an education degree from the State college in his hometown of Valley City. His degree in hand, Lynn left North Dakota for Turkey and England to teach high school on U.S. military bases. After returning home to North Dakota, he went to work for the North Dakota Farmers Union, first as its education director and then assistant secretary-treasurer. About that time, he was elected to the North Dakota legislature as a representative from his hometown of Valley City. Lynn later received an appointment as North Dakota's deputy commissioner of agriculture, before finally going on to work for the diocese. And that is where I found him. Part of what drives Lynn is his affinity for the land, and his affinity for those people who are the stewards of the land. In North Dakota, those stewards are our farmers and our good friends, the first Americans. Lynn shares a special bond with North Dakota's Native Americans. Leaders of the American Indian community liken Lynn's special qualities to that of a tribal elder. Over the years, he worked tirelessly to ensure that our tribes had equal access to all parts of our Federal and State government. His goal was always to make sure Native Americans were equal before the law. In the 1990s Lynn was instrumental to the success of the Walking Shield Housing Project, which helped alleviate a housing crisis on the reservations of Spirit Lake, Fort Berthold, Standing Rock, and Turtle Mountain. When he told me about his plans for retirement, Lynn said one of his greatest joys has been working closely with Native Americans, learning about their culture and experiencing their hospitality. So while it is true that Lynn is a naturally gentle and soft-spoken man, it is also true that North Dakota's Native Americans may not have a fiercer advocate than Lynn Clancy. Lynn's devotion to the family farmer started with his own experiences on the farm where he lived and worked as a young man. Over the years, from his time with the Farmers Union to his leadership in the State agriculture department, Lynn became the ``go to'' person in North Dakota for any farm-related concern. Whether it was helping one farmer cut through the bureaucratic red tape, or helping organize a massive farm rally, Lynn showed patience, persistence, and skill. Farmers and Native Americans shared that special place in Lynn's heart with one more thing--Marketplace for Entrepreneurs. Never were Lynn's passion, creativity, and dedication more evident than with Marketplace. Today, Marketplace is North Dakota's signature initiative to develop the State's economy--the largest and longest running business development effort in North Dakota. But in 1988, it had much humbler origins. North Dakota farmers were suffering through a searing drought. The auction barns were buzzing while the grain silos went silent. Nothing was in as short a supply in North Dakota as hope. Lynn gave our farmers hope. Lynn was the force behind making Marketplace possible year after year, creating an opportunity for farmers and others from around the State to gather and think of new ways to update their operations to reach new markets--and ultimately stay in business and stay on the land. Lynn's vision and determination were vital to the eventual recovery of many farmers and to making Marketplace the enormous success that it is today. That first Marketplace drew about 800 people. Today, thanks to Lynn, we draw more than 10,000 people. It is a tremendous success. Hearing all this may lead you to ask how a man could devote so much of his life to service. The answer is that Lynn has faith. It is central to his life. He serves as an ordained Catholic deacon in the Bismarck parish. In March, he was appointed to the Rural Life Committee of the North Dakota Conference of Churches. And even in retirement, Lynn and his wife, Janice, are working long hours as volunteers. In both his public life and his personal friendships, Lynn's fellowship, devotion, and loyalty set examples for us all. Whenever I needed him, he was there. Whenever North Dakota needed him, he was there. He lives his life in service, making other people's lives better.

Mr. CONRAD

Mr. CONRAD. Mr. President, I rise tonight in support of the supplemental. I opposed the authorization to go to war in Iraq because I thought it would be a tragic error, and it has proved to be. Iraq did not attack this country; al-Qaida did. Sometimes I think that is somehow lost in this discussion. It was al-Qaida, led by Osama bin Laden, not Iraq, led by Saddam Hussein, who masterminded the attacks of September 11. That is a fact. That is a reality. I think it was one of the great mistakes in American history that we launched an attack on Iraq before ever finishing business with al-Qaida. Now we face a difficult choice. We have 160,000 troops in the field, and I believe we must fund those troops until there is a responsible plan to redeploy them. Unfortunately, this President has absolutely refused to construct such a plan. I believe that leaves us with little choice but to fund the troops in this resolution before us tonight. We also have in this package a matter of great interest to the people whom I represent, so I would like to speak for just a moment on a separate subject; that is, the disaster relief which is contained in this legislation. I introduced a comprehensive disaster plan 3 years ago. The Senate has supported it, most recently in a vote of 74 to 23 on the Senate floor. The House supported it 2 weeks ago in a vote of over 302 Members in support. Today, it received 348 votes. Now we have an assurance we did not have before--that the disaster package will be signed by President Bush. This has been a long, hard fight, but it is critically important to the people whom I represent. These have been the headlines all across my State: Crops Lost To Flooding. Beet Crop Smallest in 10 Years. Heavy Rain Leads to Crop Diseases. Rain Halts Harvest. Area Farmers Battle Flooding and Disease. This is the picture which we saw in my State 2 years ago. I flew over southeastern North Dakota, and it looked like a giant lake. Over a million acres were prevented from even being planted. Another million acres had tremendous losses in production. Then, irony of ironies, last year we had one of the worst droughts in our Nation's history--by scientific measurement, the third worst drought in American history--and the Dakotas were the epicenter of that drought. Mr. President, it got very little attention. It wasn't like Hurricanes Katrina and Rita, which were disasters that were immediately evident, and which received enormous national media attention. This was a slow-developing tragedy but a tragedy nonetheless. The Dakotas were right at the heart of it--North Dakota and South Dakota. It was rated as an exceptional drought--not extreme or severe or moderate, which are the other measurements, but an exceptional drought. Exceptional it was. Here is the map of the U.S. Drought Monitor. They concluded it was the third worst drought in our Nation's history, right down the center of our country. As you can see in this picture taken near my home in Burleigh County, ND, the corn is supposed to be knee-high by July 4, but it was just over the edge of this man's boot. I went into a cornfield that was irrigated. The farmer started shucking the corn, and every other row was empty. I asked him how can that be? He told me: Senator, this week it was 112 degrees one day. We had day after day where it was over 100 degrees. This led to a devastating series of losses. The bankers of my State came to me and said: If there is not help, 5 to 10 percent of our clients are going to be out of business. That is how serious and consequential this is. Without this help, thousands of farm and ranch families will be forced off the land. This legislation is funded as an emergency and doesn't require offsets from other programs. This is a change from the 2004 agriculture disaster package. Producers will be eligible for assistance for one year only. Assistance payments plus the value of crop sales and crop insurance cannot exceed 95 percent of the expected crop value, so nobody is getting rich. It doesn't allow producers to receive multiple benefits for the same loss. So there is no double-dipping. Crop assistance eligibility requires a 35-percent loss before there is a dime of assistance, and the payment rate is 42 percent of the established price for insured crops. Livestock producers are eligible for both a livestock compensation program to help offset forage losses and feed costs and a livestock indemnity program to help cover death losses. I thank my colleagues in the Senate and the House who have worked tirelessly for the last 3 years to help deliver this assistance. It has been bipartisan in the Senate. It has been a long and hard fight, but it is going to be a lifeline to thousands of farm and ranch families in my State. This is a bill the President should sign. I thank the Chair and yield the floor.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased today to honor a community in North Dakota that is celebrating its 125th anniversary. On June 14 to 17, the residents of Washburn, ND, will celebrate their community's history and founding. Washburn is a small town in the central part of North Dakota with a population of 1,389. Despite its small size, Washburn holds an important place in North Dakota's history. The Lewis & Clark Expedition spent the winter at Fort Mandan, near where the town would eventually be located. Washburn was founded in 1882 along the Missouri River and named for Cadwallader Colden Washburn, a Civil War general, Congressman, and Governor of Wisconsin. ``King'' John Satterlund was one of the town's first leaders. Washburn was incorporated as a city in 1902 when the Soo Line Railroad came to town. Over the last 125 years, Washburn has remained a strong community. The energy industry provides the driving force in the local economy. Washburn's residents are very proud of their community and enjoy the beautiful Missouri River scenery and quiet rural lifestyle. They continue to support the school, churches, and many other small businesses in town. Mr. President, I ask the Senate to join me in congratulating Washburn, ND, and its residents on their first 125 years and in wishing them well into the future. It is clear that Washburn has a proud past and a bright future. By honoring Washburn and all the other historic small towns of North Dakota, we keep the pioneering frontier spirit alive for future generations. It is places such as Washburn that have helped to shape this country into what it is today, which is why it is deserving of our recognition.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased to recognize a community in North Dakota that will be celebrating its 125th anniversary. On June 8 to 10, the residents of Davenport will gather to celebrate their community's history and founding. Davenport, a railroad town located in Cass County just 20 miles southwest of Fargo, is a community of about 261 people. The city was founded in 1882 and platted by G.F. Channing and Henry D. Cooke, Jr. The post office was established April 6, 1882, and Davenport was organized into a city in 1895. Channing named the town for Mary Buckland Davenport, a friend from Massachusetts and the second wife of William Claflin, who was the Governor of Massachusetts from 1869 to 1872. Davenport has plenty to offer its residents and visitors. Young couples and families are drawn to Davenport as it offers an escape from the big city, more affordable housing, and an opportunity to raise children in a more rural setting. Businesses in Davenport include a bar and restaurant, a beauty shop, and additional home-based businesses. The town also has a park called Tuskind Park, named after the Davenport family that used to own the grocery store. The 125th celebration in the town where Mayor Jason Lotzer notes, ``everybody knows everybody,'' will include a ``Wagon Train,'' karaoke, a parade, a silent auction, all school reunion, and a variety of activities in Tuskind Park. Mr. President, I ask the Senate to join me in congratulating Davenport, ND, and its residents on their first 125 years and in wishing them well in the future. By honoring Davenport and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Davenport that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. Davenport has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased today to recognize a community in North Dakota that will be celebrating its 125th anniversary. On June 22 to 24, the residents of LaMoure will gather to celebrate their community's history and founding. LaMoure is a small town in southeast North Dakota with a population of roughly 1,000 residents. LaMoure was named in honor of Judson LaMoure, a legislator in the Dakota Territory government. It is the only known community named ``LaMoure'' in the United States. LaMoure has a variety to offer, from its beautiful lake and parks to tours of the Toy Farmer Museum and Hutterian Brethren Colonies. Also in LaMoure, you can tour the County Courthouse, which is on the National Register of Historical Places. The LaMoure County Memorial Park, a short drive from LaMoure, is home to the LaMoure County Summer Musical Theater, which showcases local talent in a series of live performances throughout the summer. For those who call LaMoure home, it is a comfortable place to live, work, and play. The people of LaMoure are enthusiastic about their community and the quality of life it offers. The community has a wonderful celebration weekend planned that includes parades, dances, picnics, games, and much more. Mr. President, I ask the Senate to join me in congratulating LaMoure, ND, and its residents on their first 125 years and in wishing them well into the future. By honoring LaMoure and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as LaMoure that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition. LaMoure has a proud past and a bright future.

Mr. CONRAD

Mr. CONRAD. Mr. President, I am pleased to recognize a community in North Dakota that will be celebrating its 125th anniversary. On June 23, the residents of Pisek will gather to celebrate their community's history and founding. Pisek, a railroad town located in Walsh County, was established in 1882 by Frank P. Rumreich and other Czech and Moravian settlers. Pisek was chosen as the name because some its the settlers had come from Pisek, Czechoslovakia, and also because the community was built near a sand ridge. Pisek means ``sand'' in Czech. Pisek is home to 96 residents and several small businesses. The local J-Mart draws customers throughout the area because it is known for having the best Christmas candy selection in the region. Pisek's church, the St. John Nepomucene Catholic Church, was blessed on the feast of St. John Nepomucene on May 16, 1887, and today it continues to be vital part of the community. The community's celebration will include a church service, a parade, a traditional Bohemian pork and dumpling meal, and various afternoon activities. An evening street dance will close the celebration. Mr. President, I ask the Senate to join me in congratulating Pisek, ND, and its residents on their first 125 years and in wishing them well in the future. By honoring Pisek and all the other historic small towns of North Dakota, we keep the great pioneering frontier spirit alive for future generations. It is places such as Pisek that have helped to shape this country into what it is today, which is why this fine community is deserving of our recognition.

Mr. CONRAD

Mr. CONRAD. Will the bill managers yield for a question?

Mr. CONRAD. Mr. President, for the information of the body, could the Senators give us some picture on the voting circumstances this evening? Is there a clear picture on whether you might expect additional rollcall votes tonight or would they be debated tonight and held over until the morning? What do the bill managers anticipate?

Mr. CONRAD. Mr. President, might I inquire, is there any possibility of having further debate tonight and votes in the morning in lieu of additional votes this evening?

Mr. CONRAD

Mr. CONRAD. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. CONRAD

Mr. CONRAD. Mr. President, I ask unanimous consent that all quorum calls be equally divided.

Mr. CONRAD. Mr. President, we bring to the floor the conference report on the budget. It is a conference report that I believe is worthy of our support. Let me say why. Under this budget plan, we will balance the budget in 5 years. In the fifth year, 2012, we will have, according to the projections, a $41 billion surplus. This is after 6 years of deficit, and in an additional 4 years, we will finally be returning to balance. The budget resolution we bring to the floor will reduce spending as a share of gross domestic product each and every year, from 20.5 percent in 2008 down to 18.9 percent in 2012. It is that spending discipline that helps us reach balance in the fifth year. It also has the positive effect of bringing down the debt as a share of our gross domestic product in every year after 2010. This is gross debt. If we looked at publicly held debt, it will actually be bringing it down every year from 2009 on. So I believe this is a responsible budget that returns us to a fiscally responsible approach to our Nation's spending. Some have said there is a big difference in spending between this budget and the President's budget. We have put it on a chart to visually compare over the 5 years the difference in spending in this proposal and what the President proposed. As you can see, there is virtually no difference--virtually no difference--in spending between this proposal and the President's spending proposal. Yes, it is slightly more spending, but this slight addition is going for veterans health care, to expand children's health care, and to provide further investment in education. Those are the fundamental places where we have modest additions to spending. As you can see, on a fair comparison basis, when you put the two spending lines together on the same axis, comparing apples to apples, you see the difference in spending is quite modest. On the revenue side, we have included a 1-year fix to the alternative minimum tax, the old millionaire's tax. It is rapidly becoming a middle-class tax trap. If we had not acted, over 23 million people would be caught up by the alternative minimum tax in this next year. We have avoided that, providing dramatic tax relief to those people. We also extend the middle-class tax cuts in this proposal. That includes continuation of marriage penalty relief, the child tax credit, and the 10-percent bracket. These provisions will benefit tens of millions of the American taxpayers. We also include estate tax reform. It is well known under the current estate tax law, we will go to a $3.5 million exemption per person in 2009. Then there is no estate tax in 2010. Then we go back to an estate tax in 2011 that provides only $1 million of exemption per person or $2 million for a couple. Instead of having that anomalous situation, we will continue providing a $3.5 million exemption per person or $7 million for a couple indexed for inflation. I think that makes common sense. Now, we have heard from some there is a big tax increase in this budget. There is no tax increase in this budget. Let me reemphasize that. There is no assumption of a tax increase in this budget. I do not know what I could say to be more clear. Here, shown on this chart, is what the President said his budget would produce in revenue over the 5 years. This is the President's own estimate of what his budget would produce. He said his 5-year budget would produce $14.826 trillion of revenue over the 5 years. That is according to the scoring by his own Office of Management and Budget. Our budget produces $14.828 trillion of revenue over the 5-year period. There is virtually no difference between what the President claimed his budget would produce in revenue and what our budget produces in revenue. Now, our friends on the other side will be swift to say: Wait a minute, Senator, you are using Office of Management and Budget estimates and CBO estimates, two different estimates. That is true. The point I am making is the President said it was entirely reasonable to expect to raise $14.826 trillion of revenue over this 5 years. That is his own estimate of what his budget would produce. CBO says our budget would produce $14.828 trillion--a $2 billion difference on a $15 trillion base. That is statistically the same. If you put them both on a CBO baseline--in other words, have estimates done for both the President's revenue and our revenue by the CBO--we have 2 percent more revenue than the President--2 percent. We believe 2 percent can be achieved with no tax increase of any kind. Let me reemphasize that. We believe, if you look at the CBO scoring that says we have 2 percent more revenue than the President, that can be achieved without any tax increase of any kind. I will explain why in a moment. If you look at what is shown on this chart, this is a 5-year budget. But all of us know we are going to write another budget next year, so what matters is next year. Here shown on the chart is the revenue line in our budget and the President's revenue line. You will notice they are identical. There is no difference--none--not a penny, not a dime. In 2009, there is virtually no difference in the two. So let's be serious. When somebody jumps up here and says this is the biggest tax increase in history, the only way that is possibly true is if the President has proposed the biggest tax increase in history. Because there is, for next year--and we will write another budget next year--for next year, there is no difference in the revenue in our proposals. How can it be we could get 2 percent more revenue under the CBO scoring than the President proposes without a tax increase? How is that possible? Well, first of all, we have the tax gap, which back in 2001 was estimated to be $345 billion a year. I believe that tax gap now is in the range of $400 billion a year. That is the difference between what is owed and what is paid. I believe that is now $400 billion a year or thereabouts. Over 5 years that would be more than $2 trillion-- money that is owed that is not being paid. But that is not the only source of revenue without a tax increase. The second area of opportunity to get revenue with no tax increase is the explosion and the abuse of offshore tax havens. I have shown this building down in the Cayman Islands many times on the floor. This 5- story building is the home to 12,748 companies. It is remarkable that all of those companies--12,748--are doing business in this little 5- story building, but that is what they claim. Are they really doing business down there? The only business being done out of this building is monkey business because what they are doing is engaging in an enormous tax scam. They claim they are doing business down there because they don't have any taxes down there. So how does it work? It is a giant shell game. They have entities in the United States that they say are making no profits, because they move the money offshore into these Cayman Islands subsidiaries where there are no taxes, and all of a sudden they show enormous profits. Who is being fooled by this? Shame on us if we are being fooled. But currently, we are. I would suggest we close down this scam. The Permanent Subcommittee on Investigations has said we are losing $100 billion a year through these offshore tax havens. Let me quote from their report from earlier this year: Experts have estimated the total loss to the Treasury from offshore tax havens alone approaches $100 billion a year, including $40 to $70 billion from individuals and another $30 billion from corporations engaging in offshore tax evasion. Abusive tax shelters add tens of billions of dollars more. Mr. President, $100 billion a year in tax havens, and tens of billions more----

Mr. CONRAD. I am happy to yield to the Senator.

Mr. CONRAD. Mr. President, first of all, in answering the question of the Senator, I would say what you find is quite stunning. We went on the Internet, I would say to my colleague--first of all, I thank him because the picture of this building down in the Cayman Islands came from him. I have used it repeatedly because it tells such a powerful story: 12,748 companies that call this little building home. We know what is going on. It is a giant scam. I would say to the Senator, we went on the Internet and we entered in ``offshore tax planning.'' Do you know how many hits you get if you enter in that phrase? You get 1.2 million hits. Here is my favorite. If you go online and you look at what is on the Internet----

Mr. CONRAD. I am happy to yield.

Mr. CONRAD. Look, I do not know what the status of that particular hedge fund is. What I do know is these offshore tax havens are being abused by lots of different entities, not only corporations but wealthy individuals. I don't have any evidence which would suggest that particular hedge fund did anything improper, and certainly you can be engaged in business in the Cayman Islands and not be engaged in anything improper. The point we are making is that in this particular building, there are 12,700 companies calling it home. But more than that, when you go on the Internet--and by the way, we have yet to see the financial reports of some of the Republican candidates for President, some of whom report they have net worth over $100 million. It will be interesting to see their financial arrangements, and I hope the Senator will be just as focused on any abuse that might be in their portfolios. That will be very interesting.

Mr. CONRAD. I am happy to yield.

Mr. CONRAD. Mr. President, reclaiming my time, I will be happy, when I have completed my presentation--the Senator has half the time, and I know he will use it well. I hope he will give me the opportunity to complete my presentation, and then I am happy to answer all of his questions. Mr. President, when you look on the Internet--this is my favorite one: Live tax free and worldwide on a luxury yacht. Moving offshore and living tax free just got easier. That is the kind of scam which is going on that is costing the Treasury of the United States, according to our own Permanent Subcommittee on Investigations, over $100 billion a year. It doesn't stop there. This is a picture of a sewer system in Europe. What does a sewer system in Europe have to do with the budget of the United States? Well, as it turns out, it has a lot to do with it because this sewer system in Europe was actually purchased by wealthy U.S. investors, depreciated on their books for U.S. tax purposes, and then leased back to the European city in which it is actually located. It has no business purpose. There is only one purpose, and that purpose is to operate as a scam. This is the kind of thing which should be shut down. Nobody can justify this. Nobody can defend this. That is what is going on. So I believe the combination of closing the tax gap, just a tiny portion of it, combined with shutting down these offshore tax havens, combined with shutting down these abusive tax shelters, could easily provide the 2 percent of revenue we have that is over and above the President, according to a Congressional Budget Office score, with no tax increase to anyone. The budget conference report we bring to the floor also funds a number of critically important priorities for the American people, including expanding health care coverage for children. When you look at the comparison, the President has provided $2 billion for this purpose over the 5 years. We provide $50 billion so that there is the prospect of covering every child in America who is not otherwise covered with health insurance. That is good policy, it is a good investment, and it is morally right. We ought to ensure that every child in America has health care coverage. It is good policy because if you solve a health care problem for a child, you get a return on that investment for their lifetime. Another area that has been a priority in this budget is education. Under this budget, we provide some $6 billion in this next year over and above what the President provided because we think education is the future. If we are not world class in education, we are not going to be a world-class power. So we have provided that additional investment in education. The third area of initiative is in veterans health care. If there is any scandal that I think has troubled the American people more than what we saw at Walter Reed where heroes returning from Iraq and Afghanistan have been subjected to subpar medical treatment, I don't know what it is. I don't know of anything that has so angered so many people, at least in my constituency. So we have adopted a budget here that closely follows the independent budget which is put forward by the veterans organizations themselves which provides for $43.1 billion in funding in the next fiscal year, compared to the President's $39.6 billion. To recap, the budget resolution we bring to the floor, the conference report, puts the Nation back on a sound fiscal path. It balances by 2012 with a $41 billion surplus in 2012. It reduces spending as a share of gross domestic product each and every year of the 5 years of the budget. It reduces debt as a share of gross domestic product from 2010 on. It adopts spending caps and restores a strong pay-go rule. What is pay-go? Pay-go simply says that if you want to have more mandatory spending or more tax cuts, you can have them, but you have to pay for them, and if you don't pay for them, you have to get a super-majority vote. This budget also meets the Nation's priorities. It fully funds the President's defense and war cost requests. It rejects the President's cuts in certain key priority areas. It provides increases for children's health, for education, and for our veterans health care, an area in which the American people overwhelmingly want us to invest. In addition, this budget resolution keeps taxes low. It extends specifically the middle-class tax relief provisions, including marriage penalty relief, the child credit, and the 10-percent bracket. It provides alternative minimum tax relief so that more and more middle- class people don't get swept up in that tax. It provides for fundamental estate tax reform. It includes the deficit-neutral reserve funds for additional tax relief and for the extension of other expiring provisions. It includes no assumption of a tax increase. This budget also prepares for the long term. It provides for program integrity initiatives to crack down on waste, fraud, and abuse in both Medicare and Social Security. It includes health information technology and comparative effectiveness reserve funds to address rising health care costs. According to the Rand Corporation, widespread health information technology alone could save $81 billion a year. It also adopts a new budget point of order against long-term deficit increases. I will conclude by saying this budget has specific proposals addressing our long-term fiscal challenge. It provides program integrity initiatives to crack down on waste, fraud, and abuse. It provides new mandatory spending, and tax cuts must be paid for in the pay-go provision. It provides that long-term deficit increase face a point of order, a super-majority hurdle on the floor of the Senate. It provides for the health information technology reserve fund. I have already indicated that the Rand Corporation indicates that health information technology could save $81 billion a year. Finally, it includes the comparative effectiveness reserve fund, so that we look at the technologies and approaches being used across this country on how we could save money by using the best practices in health care. We think this is a responsible budget, one that meets the needs of the American people. We believe it merits our colleagues' support. Before I yield the floor, I want to thank my colleague, Senator Gregg. I acknowledge that we have differences about this budget. That is healthy. That is the strength of our democracy, that we have a debate and differences. But I wish to say that Senator Gregg has always conducted himself as a professional and has been extremely helpful as we have gone through the process. He and his staff have cooperated with us closely, while they have disagreed very strongly with respect to some of the conclusions we reached. I wish to acknowledge the way in which he and his staff have conducted themselves as we have gone through this difficult process. I thank him for the many courtesies he has extended to us as we have gone through the budget resolution this year. I yield the floor.

Mr. CONRAD. Mr. President, I detect the Senator was blushing a bit when he suggested at the beginning of his statement that his party is the party of fiscal responsibility. Wow. That is breathtaking. Their party is the party of fiscal responsibility? Let us look at what has happened on their watch when they controlled everything. They controlled the House, they controlled the Senate, they controlled the White House. Here is what happened to the debt on their watch. They have built a wall of debt that is going to take us a generation to recover from. When this President came to office, at the end of his first year--we won't hold him responsible for the first year, although he inherited balanced budgets--the gross debt of the United States stood at $5.8 trillion. At the end of this year, it is going to be $9 trillion. So they have run up the debt $3 trillion in 5 years. If the President's plan is followed, in the next 5 years they are going to run it up to $12 trillion. Their claim that they have been fiscally responsible is unfortunately contradicted by the facts. They talk about the performance of the economy. Let's look at the performance of the economy. We have looked at what happened in this recovery compared to the nine previous recoveries, major recoveries since World War II. Here is what you find. Under this recovery we are running, on revenues, $127 billion short of the typical recovery since World War II. On job creation, in the first 75 months, the previous administration, the Clinton administration, created 18.7 million jobs. In this administration for the same period, 5.2 million. The Clinton administration produced three times as many jobs. On job creation compared to the nine previous recoveries since World War II, they are 7 million private sector jobs short of what has happened in the typical recovery. On business investment, again, compared to the nine recoveries since World War II, they are 69 percent below the typical recovery since World War II. When he talks about this burst of revenue under their fiscal management, you will notice that all his charts start in the year 2004. They forgot about 2001, when they were in charge; 2002, when they were in charge; 2003, when they were in charge. In fact, if you look back on the revenue of the United States, here is what you see. Tell the American people the whole story, not just the bits and pieces they talk about. Back in 2000, the revenue base of the United States was just over 2 trillion dollars. It has taken us until last year, it has taken us 6 years to get back to the real revenue base this country had in 2000. Let's look at their record. The simple fact is, they increased spending--and they controlled every dime that was spent here. They increased spending by more than 40 percent. They stagnated the revenue base. The result was an explosion of debt. That is their record, and it is indelibly etched in the history of the country. Unfortunately, we are going to pay a long time.