Nick Smith

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to honor the Chelsea High School softball team who last month won their second consecutive Division II state championship. The Bulldogs compiled an impressive record of 36-4 and swept through the 2003 state playoffs outscoring their opponents 44 to 1 in the seven playoff games. The Chelsea girls softball program has, over the past two seasons, compiled an outstanding overall record of 72-7-1 in winning back-to- back state championships. I salute the hard work and dedication of the players: Julia Arnold, Brynna Darwin, Cynthia Johnson, Katie Herman, Becky Sprague, Carly Daniels, Nicole Collins, Ali Mann, Missy Morcom, Alise Augustine, Katrina Moffett, Jenna Connelly, Danielle McClelland, Anna Arend, Mary Kate Setta and Christyna Toon. We in Congress also pay tribute to the coaches whose personal interest, strong support and active participation played no small part in the team's success: Bob Moffett, Mark Musolf, Chris DeFant, Jenni Driskill, Kathy Sprawka, and head coach Kim Reichard. Under their guidance, the players have refined not only their athletic talents but learned the value of sportsmanship, the joy of camaraderie, the importance of teamwork, how to become a leader and motivate others, the rewards of hard work, how to deal with success and failure. These valuable lessons combined with a good education will serve them long after their days on the diamond have passed.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, it is with great respect for the outstanding record of excellence she has compiled in academics, athletics and leadership, that I am proud to salute Kaitlin Kelly Sharkey, a 2003 graduate summa cum laude of Northwest High School in Jackson, Michigan. Kaitlin is an exceptional individual and possesses an outstanding record of achievement in her academic career. Valedictorian of her class with a 4.0 grade point average, Kaitlin was also vice president of the senior class, secretary of the National Honor Society, and captain of the school's winning Social Studies team in the Jackson County Academic Games. Throughout her high school career, Kaitlin has also excelled in athletics--earning 10 Varsity letters and the prestigious 12 Season Award for participating in 3 sports all 4 years in high school. As captain of her tennis and volleyball teams she received all-area and MVP honors. She also played three seasons at second base for the Mounties varsity softball team, earning honorable mention all conference her senior year. She received the Marine Corps Scholar Athlete Award and was selected 2003 Female Athlete of the year. She devoted her energies to community service as well--as a member of a student advisory council for drug education and a first grade religious instruction teacher. She was awarded the Meijier Dignity and Respect Award. Therefore, on behalf of the Congress of the United States, I am proud to join with her many admirers in extending our highest praise to Kaitlin Kelly Sharkey. To this remarkable young woman, we extend heartfelt good wishes as she pursues her educational goals and for all her future endeavors.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, it is with great respect for the outstanding record of excellence she has compiled in academics, athletics and leadership, that I am proud to salute Meghan Mayday, a 2003 graduate of Hanover-Horton High School in Jackson, Michigan. Meghan is an exceptional individual and possesses an outstanding record of achievement in her academic career. A member of the Hanover- Horton National Honor Society, Meghan enjoyed an active and fruitful high school experience--participating in school plays; concert, marching and pep bands; basketball and golf. But it was in track, specifically running cross country, that Meghan has demonstrated her exceptional will to succeed. Quite simply, she decided she was going to be a successful cross country runner and she did it. To quote her coach, Dean Blackedge, ``Mighan willed herself to be great.'' Having started to season without having run a single varsity race, Megan finished it as an All-American. She is the first runner at Havover- Horton High School to win a regional meet, and the first athletic at the school to earn All-American status. A leader who inspires others to go give their best, she captained both the cross country and track teams. She's been honored by the U.S. Marines as a Distinguished Athlete, and named Female Athlete of the Year. Therefore, on behalf of the Congress of the United States, I am proud to join with her many admirers in extending praise to Meghan Mayday. To the remarkable young woman, we extend heartfelt good wishes as she pursues her educational goals and for all her future endeavors.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I present a writing by Albert Carey Caswell, one of our Capitol historians, dedicated to the United Kingdom--in honor of Tony Blair's address to the joint session of Congress. To send our fine sons and daughters off to die, off to death and war to there throughout the ages, to share such pain, such grief, such death and gore . . . as together we've endured mothers & fathers, sisters & brothers, husbands & wives the more . . . who've lost such loves, oh what a burden bore. For we are such fine friends . . . so very far across the shores as here so lies in time, now etched in history adorned, such a great tribute to our love . . . as has so endured lies such a bond from so very far across the shores, with such unity as woven . . . all throughout time all the more. For from these two great nations . . . as there would so rise a love and kinship, such that wars would not let despise, that even time and distance . . . still could not deny as a true and fine meeting of the minds . . . as a uniting of brothers and sisters . . . as there bringing such tears to eyes. For once upon a time . . . from this the great land of kings and queens of so divine came colonies, from far across the seas . . . with such splendid people, with such great dreams, so very fine and with this journey came, a great revolution of the same . . . as a bond dissolved and wars so intervened in time. And as then, throughout the many years as again . . . such a cherished bond, as so formed here . . . as such a splendid reconciliation, as so appeared and throughout war worlds & evils endured, together as friends, to this world we've stood as one so very clear. For from this great land has come, such cherished gifts to us among as our father, our true beloved son . . . one George Washington, who to this nation his heart has sung and another such splendid gift . . . that of ``hope'' by a man named ``Bob'' . . . whose America's heart has forever rung. And to this very day, as spreads so far across the way ingrained within our very hearts, lies the United Kingdom . . . for whom we all so pray who have so over the many decades, made our Nation shine in so many ways, into this promised land we see today. And as the years so pass within our hearts we ask, that this fine bond which we've so made . . . shall to ever last for this our great love & friendship which has so evolved . . . recorded now in history, has forever stood steadfast. Now as such fine friends, so very far across the shores as so lies such a bond, as one for all and all for one . . . into our love as poured . . . as lies there forever more across the highs seas & distant shores, a blessing to two countries . . . within one another this love shall endure.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Chairman, I rise in support of the amendment and ask unanimous consent to revise and extend my remarks. This amendment sends a signal to the government of the Indian state of Tamil Nadu that it must abide by its contracts with American and other foreign investors. Five American energy companies built state-of- the-art energy plants in Tamil Nadu. These companies negotiated contracts with the state government to provide energy at a guaranteed minimum rate. However, the government of Tamil Nadu has paid less than this guaranteed rate to the tune of over $130 million. One of the affected companies, CMS Energy, is based in the 7th district of Michigan. CMS built a state-of-the-art energy plant, providing jobs and training to the Tamil people. It also provides steady energy to support economic development and growth in Tamil Nadu. The government of Tamil Nadu's violation of its contract has cost CMS over $14 million. The amendment affects only the state of Tamil Nadu. It is not anti- India. It will do nothing to affect other Indian states that respect the sanctity of contracts and provide an excellent environment for the foreign investment that benefits both India and investors. We should not be using our aid to reward governments that do not respect contracts.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Chairman, just a very important point, I think bovine spongiform encephalitis, BSE, has never been found in the United States. We have the most strict meat inspection in the world, and if we pass this resolution the danger is that we complicate the inspection of those downed animals. Downed animals in this country do not go into the human food chain without a thorough health safety investigation.

Mr. SMITH of Michigan. Mr. Chairman, will the gentleman yield?

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I want to talk tonight a little bit about the importance of a college education and some of the laws that this Congress has passed to encourage better savings for education. Some of the concerns that we need to consider is the fact that individual students and their parents in the future probably are going to be have to be more responsible for coming up with a larger share of the funds for their kids' college education. Benjamin Franklin once said, ``An investment in knowledge always pays the best interest.'' As we move to a high-tech economy, that is certainly truer than ever. High school dropouts earn an average of $360 a week, while high school graduates earn $506. Two-year college graduates earn $598 a week, and 4-year college graduates earn on an average $796. Over a life of work, a college graduate can expect to earn $620,000 more than a community college graduate, $810,000 more than a high school graduate and a whopping $1,115,000 more than a high school dropout. In addition to dollars, education gives a person more options to do what they want to do in life. This is one of the reasons I tell young people who visit me to study hard. It is also why I started the LeGrand Smith Scholarship Fund for high school seniors from the 7th Congressional District of Michigan. Finally, it is why I have pushed for tax savings for parents and grandparents to save for their children's and grandchildren's education. Simply put, there is nothing that can brighten a young person's future more than education. The cost of education, while still worthwhile given the earnings difference, it is very expensive. Under present trends, a child born today can expect to pay about $125,000 for 4 years at a State university, about twice that much for a private university. There is a lot of Federal and State government scholarships, tax benefits, work study programs, subsidized loans and financial aid for people in college. Congress has also created two tax-favored savings programs in recent years that help families save for education, and these two I think are important. The Coverdell Education Savings Account allows eligible taxpayers to contribute up to $2,000 a year. These contributions are taxable, but the accrued earnings when a person takes them out are not taxable. The accounts are flexible and can be used to pay for educational expenses in grade school, high school or college. They can be even used to defray the costs of home school education. In addition to tuition, the money can be used for books, supplies, equipment, tutoring, services for children with special needs, Internet access, et cetera. These accounts are open to taxpayers earning less than $220,000 a year for couples. Another option, as I conclude, Mr. Speaker, is the 529 plan. These are tax-deferred educational savings programs that put contributions under management like pension programs. They are often State-sponsored and provide good flexibility. Contributions can be made in a lump sum or in installments, and many States also contribute when a person starts spending that money for a college education. In Michigan, we contribute $1 for every $3 deposited. I would encourage every friend and family member to think about educational savings for their children, their grandchildren, their nephews, their nieces. The expense of college education is daunting, but investing some now will allow for compound interest and growth over time. For example, even with the current low prospects for a return on earnings, saving just $80 in a month can grow to $31,000 over the 18 years it takes a child to be ready for college. It is important to get started right away. Mr. Speaker, education is important. Everybody should be looking at the advantages of saving now.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to pay tribute to a friend and great American. In a rich life span of 81 years, Alex Canja mentored thousands of young men and women and then, in later life, became an advocate for older citizens. On his own, without parents, from the age of 11, Alex raised himself, living at the YMCA in Flint, MI and selling newspapers. Ever the optimist, determined to succeed, he believed that with hard work and honest effort, his dreams could come true. And they did. At Flint Central High School, he was elected president of the student body. He served in the US Army Air Force returning to the University of Michigan after the war. He became an All-American diver, was captain of the U of M swimming team, and earned a Master's Degree in Education. It was there that he met and courted Esther Giovannone, also known as ``Tess.'' She became his wife and inseparable companion for 56 years. He served his community. A teacher, deputy superintendent, and camp director, Alex coached swimming, taught English, and with his wife Tess, built the fledgling summer camp ``Camp Flying Eagle'' into one of the finest in Michigan. His goal was to provide young boys and men the many opportunities for personal growth and success he knew they needed. Alex worked for many years with AARP on behalf of the senior citizens of the United States. He served alongside his wife, Tess Canja, who became the National president of AARP. He brought his wit and wisdom to meetings of the spouses and companions of AARP board members, melding them into a support group for themselves and the Board. He was very proud of Tess and her accomplishments, but also of his daughter, Debbie, son, Jeff, and grandsons, Brian and Scott. Another son, Paul, preceded him in death. For Tess and Alex Canja, their immortality will be in their contribution to their community, their state, and their nation.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. If the gentleman would yield, I would strongly suggest that this kind of debate is excellent, and I compliment the Blue Dogs and certainly the gentleman from Georgia (Mr. Kingston). But may I suggest that maybe we are going about the debate the wrong way. Instead of trying to blame each other, let us start looking at how we might work together. We all know that there is tremendous pressure coming from lobbyists and user groups that want more spending for their particular interests. Lobbyists in this Nation's Capital are very effective. We realize it takes a lot of money to get reelected now. I have got a chart here, but, still, we are all to blame. We all have our special interests. The Blue Dogs said, let us increase entitlement spending and borrow $400 billion for adding prescription drugs to Medicare. That is because there is a demand out there, and there are enough people that think that it is going to be to their advantage on getting reelected or that it is a good thing to do. But the fact is, that even that kind of a program, which seems to have some merit, tremendously puts a burden on future generations. So how do we deal with prescription drugs, which is very popular, especially with seniors? How do we deal with some of the Republican proposals for increased spending to try to come together? There are enough Republicans and enough Democrats that, instead of arguing across the aisle, if somehow we could decide on some of the issues we agree on. The increase in the total debt held by government continues to go up, regardless of the administration. When there is a Democrat President, we heard a lot of claims that the reason that we had balance in that couple of years was because of the leadership of the White House, and now we are hearing claims that the increased debt and spending is because of the same kind of spending leadership that we might have in this White House. How do we come up with the kind of policy that is willing to deal with a $9 trillion unfunded liability for Social Security, an estimated $7 trillion unfunded liability if we add prescription drugs to Medicare, and the willingness to continue to spend more money? I agree with the Blue Dogs, and the Blue Dogs have done a great service, I think, during some of the minority years that Republicans were in the minority, of adding some votes to some of the spending projects that would put some limitations on it. So it is, of course, my frustration that we do not deal with some of the unfunded liabilities. The unfunded liabilities are just as important to the burden that we are putting on future generations as any increase in discretionary spending or in what we consider the debt subject to the debt limitation. In fact, we should be holding this discussion based on the total obligation of our kids and our grandkids, and that includes not only the debt and the tremendous interest that we are paying on the debt; I think somebody mentioned $1 billion a day on the debt. But that is at the lowest interest rates we have seen in many years. If interest rates go back to normal, then we are going to be looking at half a trillion dollars a year in interest rates, if not more. The solution I have might be that we just start working together, instead of blaming each other, to maybe come up with some of the resolves that we should all be working together on.

Mr. SMITH of Michigan. Mr. Speaker, I am not sure I have a whole 2 minutes, but the Blue Dogs are probably not average for your conference, for your caucus. You are probably more conservative than the average of the total Democrats in the House. Probably this group is about average for the conservative ideas of the Republicans. But we have 20 Republicans that are very concerned about some issues that maybe increase spending in particular areas. So if we are going to end up accomplishing anything, we have to maybe work together. If the rest of your conference thought the Blue Dog budget was going to pass, my guess is they would not have voted for it. So maybe we need to sneak up on this side and sometimes give you enough votes to pass that Blue Dog budget if we can agree on, ahead of time, with this side of the aisle on what is the reasonable budget. But we do not like taxes because taxes sort of depress economic expansion. But on the other side of that story, we have to have enough intestinal fortitude, we have to have enough guts, to say that if we are going to spend the money today, we should pay for it. What we have to do also is live up to coming up with legislation that is going to deal with Social Security, to keep Social Security solvent. Most of my colleagues have not signed any Social Security bill. The gentleman from Texas (Mr. Stenholm) has gone and walked the tight wire on Social Security, as I and some others have, and that is what we are going to have to do. My guess is this next campaign is going to say, let us try to get together and work with Social Security. We should do it ahead of time. But in conclusion, I agree. Let us do this again, and let us try to limit the blame from each side and try to work together for some conclusions of how we might work together to accomplish our goals and what my Democrat colleagues suggest are their goals.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to talk about Social Security's coming crisis. The actuaries and trustees of the Social Security Administration have long understood, at least for the last 15 years, the challenges facing our Social Security program. With the impending retirement of the large baby-boom generation starting around 2012, there will be a shift in the proportion of workers paying into Social Security compared to those retirees drawing benefits. As a result, there will not be enough money as benefits going out will exceed taxes coming in by about 2015. Recently I met with White House staff and political director Karl Rove to encourage Presidential leadership and Republicans and Democrats in Congress to deal with the coming crisis. It is easy to put off. There is even a greater need to face up to the Social Security problem now with the probability of more money being spent for a very expensive prescription drug benefit that probably is going to be added to Medicare. Let me talk about what is happening to the population 65 years old and older. It is going to increase from currently 37 million today to 75 million in 2035 and to 95 million by 2075, so a huge increase in the number of retirees while the birth rate is going down, so fewer workers to pay their in taxes to cover those benefits. This population will grow much faster than the workers due to increased life expectancy for seniors and lower birth rates. Because Social Security is a pay-as-you- go system, with workers' payroll taxes going immediately to pay benefits to seniors, these demographic changes are going to lead to the program's insolvency in a little over 10 years unless something is done. The options for Social Security are straightforward, I think. We can increase payroll taxes, which are already too high. Seventy-five percent of American workers now pay more in the payroll taxes than they do the income taxes. We can cut benefits, or, instead of using all the extra money coming in now from Social Security taxes for other government spending, get a real rate of return on payroll taxes we already collect. It is obvious, to me at least, that the last option is best, but it cannot work unless we give money time to grow with interest. If we wait another decade to act, there will be no choice but to take drastic action. I have introduced my own reform proposals in each of my last five terms in Congress. They have been based on slowing down the increase in benefits for high-income retirees and having a real rate of return on some of that extra money coming in. I am working on the final aspects of this year's bill, which I plan to introduce in the next 2 weeks, and as I finalize provisions to make the system more fair for women in this bill. One thing I have learned over the last decade is that time is running out for reasonable solutions. As I have introduced each new bill in each new session of Congress, the way to solve the problem has been more drastic as we have been giving up the extra funds coming into Social Security that are dwindling, that are running out. It is this situation that gives me such a sense of urgency to act so we can avoid burdening our children and grandchildren with more debt, more taxes, and a failing Social Security system. Many people are concerned that a Social Security system with worker- owned accounts is unsafe because people might invest poorly or lose their savings. I have studied the problem as chairman of the bipartisan Social Security Task Force and think that investments can be limited and protected as they have been in other countries such as Britain, Australia, New Zealand, Chile. My bill requires the government to start paying back what has been borrowed from the trust fund, and that current payroll taxes go someplace safe, earn interest and end up keeping Social Security solvent. In conclusion, Mr. Speaker, government officials here in Washington need to act on Social Security, but they are too often focused on the next election to deal with problems that are still a decade away. The truth is that Social Security is headed for a cliff, and if we begin to turn and slow down now, we can avoid it smoothly. If not, a panicky swerve and screeching brake is coming. Let us avoid that. Let us stand up to our responsibility and deal with Social Security.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to honor Marie Davis of North Adams, Michigan. A lifelong resident of North Adams, Marie has enriched the lives of others through her outstanding participation in civic and volunteer activities, and her many accounts of life in North Adams. Marie was born on August 14, 1909 and is a lifelong resident of North Adams. She attended school there and graduated from North Adams High School, and has been a member of the North Adams United Methodist Church. Marie has also represented North Adams as a member of the Women's Congress at the Hillsdale County fair for many years. Mrs. Davis is best known for her historical accounts of life in North Adams and has kept diaries of all major events that have occurred there. She has written and published five books about local history, including: ``This is North Adams,'' ``100 Years of Sports in North Adams'', ``The History of North Adams Schools,'' and ``1886-2002: The History of the North Adams Fire Department.'' Marie Davis will celebrate her 94th birthday on August 14, 2003, and is still considered North Adams' official historian, continuing to chronicle the lives and events of that community. North Adams is a small midwestern town with tree-lined streets, friendly neighbors, and thanks to Mrs. Davis, a preserved heritage. I am pleased to recognize the efforts of Marie Davis in preserving the memories, stories and values of the past for present and future generations.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, let it be known that it is with great respect for the outstanding record of excellence she has compiled in academics, leadership and community service, that I am proud to salute Josie Cole, winner of the 2003 LeGrand Smith Scholarship. This award is made to young adults who have demonstrated that they are truly committed to playing important roles in our Nation's future. As a winner of the LeGrand Smith Scholarship, Josie is being honored for demonstrating that same generosity of spirit, intelligence, responsible citizenship, and capacity for human service that distinguished the late LeGrand Smith of Somerset, Michigan. Josie is an exceptional student at Springport High School, and possesses an outstanding record of achievement in high school. Josie has received numerous awards for her excellence in academics and athletics, as well as her volunteer activities with the Eaton Rapids Women's Club and Vacation Bible School. Josie is also proficient in sign language and has signed the National Anthem at athletic events at Springport High School. Therefore, I am proud to join with her many admirers in extending my highest praise and congratulations to Josie Cole for her selection as winner of a LeGrand Smith Scholarship. This honor is a testament to the parents, teachers, and others whose personal interest, strong support and active participation contributed to her success. To this remarkable young woman, I extend my most heartfelt good wishes for all her future endeavors.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, It is with a sincere pleasure to recognize the finalists of the 2003 LeGrand Smith Congressional Scholarship Program. This special honor is an appropriate tribute to the academic accomplishment, demonstration of leadership and responsibility, and commitment to social involvement, demonstration of leadership and responsibility, and commitment to social involvement displayed by these remarkable young adults. We all have reason to celebrate their success, for it is in their promising and capable hands that our future rests. The finalists of the LeGrand Smith Congressional Scholarship Program are being honored for showing that same generosity of spirit, depth of intelligence, and capacity for human service that distinguished the late LeGrand Smith of Somerset, Michigan. They are young men and women of character, ambition, and initiative, who have already learned well the value of hard work, discipline and commitment. These exceptional students have consistently displayed their dedication, intelligence and concern throughout their high school experience. They stand out among their peers due to their many achievements and the disciplined manner in which they meet challengers. While they have already accomplished a great deal, these young people possess unlimited potential, for they have learned the keys to success in any endeavor. As a Member of Congress of the United States of America, I am proud to join their many admirers in extending our highest praise and congratulations to the finalist of the 2003 LeGrand Smith Congressional Scholarship program.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I agree with the previous speaker on several issues, and that is that we should delay this bill and try to improve it. And I am going to make comments suggesting that it is not fair to seniors, but it is not fair to our kids and our grandkids. I have four children, and they are trying to save money to send my grandchildren to college. And one question I would pose is, why should they pay more taxes to pay for seniors' prescription drugs? The retiring seniors that we are going to see over the next 10 years are probably the wealthiest seniors this country has ever had in the past, probably will ever have in the future. Mr. Speaker, we now expect a vote on the addition of a prescription drug benefit to Medicare on June 26. And this vote would authorize the largest expansion of our entitlement programs since we amended the Social Security bill back in 1965 and added Medicare. So Social Security, because of the allure of more senior votes, Members of Congress and the President decided to expand the benefits to seniors to add Medicare. When Medicare was under consideration in 1965, a few Members realized the sort of burdens that would come to place on future taxpayers, and Chairman Wilbur Mills of the House Committee on Ways and Means predicted in September of 1964 that the costs of even part A of Medicare, which was then under consideration, would soon exceed projections and that ever-increasing taxes would be needed to finance it. He predicted it would come to pass that Medicare costs would leave Congress hamstrung, facing uncontrolled increases in costs and to the indefinite future. Mills dropped his opposition to Medicare under pressure from the President of his own party, but he was right about the program's consequences. This summer, as Congress considers the largest single expansion of any entitlement program since 1965, we should consider how a prescription drug benefit will burden future workers and taxpayers and not give seniors what they expect. The Federal Government is in serious financial problems. When the baby boomers start retiring in the next 10 to 12 years, we see more people going out of the workforce, if you will, paying in to Social Security and taxes and taking out benefits from Medicare and Social Security. When the Federal Government comes to a pinch in another 12 to 15 years, guess what is going to happen to the prescription drug program that has been promised? Number one, I suggest that government, Congress and the President will say, well, to reduce costs, we need to spread the costs over a wider segment of the population, and so we are going to require all seniors, regardless of whether you have prescription drugs in your retirement program or not, regardless of whether you have a good insurance program that covers prescription drugs, we are going to require everybody to take the government's system. Guess what comes next as government faces this fiscal pinch? Rationing, and then the government will follow what many other countries have done such as Canada and many other countries that have government-run programs. They are going to say, well, we are going to limit the prescription drugs that are available to seniors. This proposal suggest that $400 billion, and it is pretty much used up, is going to be required for spending in the next 10 years for prescription drugs. We should think carefully about the consequences of making a whatever-it-costs commitment into the indefinite future. I chair the Subcommittee on Research in Science and the medical technology is now expanding more rapidly than our ability to pay for it. That means the medical technology of the future is going to be very impressive and very successful on maintaining our health and helping us to live longer. In fact, the future has suggested that in the next 20 years, anybody who wants to live to be 100 can do so, but it will cost money. And we are sort of programming that we will pay for those benefits, whether it is $40,000 a treatment or $60,000 a treatment after they finish their first deductible and the 3,000 or whatever we end up with. And that is another question, none of us have read this bill yet. It now looks like a bill we will consider this week will add prescription drug benefits with minimum offsets for Medicare. It is not fair to our kids to add this responsibility to everybody else's kids and grandkids and my 10 grandkids, and I would hope we look more carefully at this and review it over the Fourth of July recess and come back and try to have a better bill. This will add enormous liabilities to a Medicare system which is already predicted to be insolvent. Economists calculate that the newly created unfunded liability of such a reform is $7.5 trillion. This means that a prescription drug bill that adds 12 percent to Medicare's costs comes with a present cost of $7.5 trillion, or a bit more than the entire public debt. You add this to an unfunded liability of $9 trillion for Social Security and you end up saddling our kids with a huge debt. These projections assume that prescription drug costs will grow at the same rate as the rest of Medicare, and that the prescription drug benefit will not be expanded over time. Recent history would suggest that prescription drug costs are growing more rapidly than the rest of Medicare. In 1965, OMB projected that Medicare would spend $9 billion in 1990. The actual figure was $67 billion. Having projected $26 billion in spending for 2003, we will spend $245 billion. Because medical technology--the cost of prescription drugs will be much higher. This drives home the point that any expansion of Medicare imposes a cost on taxpayers. Such a reform basically transfers the burden from retirees to taxpayers. More accurately, it means that we are transferring costs from us to our children and grandchildren. We're spending now and sending the bill to people who are yet to be born or too young to defend themselves. This is selfish and it is wrong. I'm not against a prescription drug benefit if it is responsible. But it must not place heavy and increasing burdens on workers, taxpayers, and the economy in the future. I oppose the bill that is now under consideration because it does not meet this test. Once again, we have not had an opportunity to see and review a bill on an important topic before we are required to vote on it. It is rumored, in fact, that changes are still being made. Few members will actually know exactly what's in this bill until after it has passed. I believe that the better approach would be to release the bill tomorrow and then delay the vote until after the upcoming Fourth of July work period. That would allow all of us in Congress to read the bill, consult with our constituents, and make a fully informed decision on a program that could profoundly affect our future and that of our children and grandchildren. I urge Congress to reject the bill tomorrow so we can take a more responsible and deliberate approach to reforming an important program like Medicare.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, on the prescription drug program that we are about to vote on this week, I am not an expert on health care or prescriptions; but I have observed over the years what happens when government takes over some of these programs. The big change of course was when we amended the Social Security bill in 1965 to add Medicare. We estimated at that time that the cost of Medicare by 1990 would be $9 billion. It was $70 billion projected 2003 to be $26 billion, but the actual cost today is $265 billion. This bill we are estimating at $400 billion. I suggest that is a very low estimate, and the second 10 years is the greater challenge because of retirements. To seniors, the danger is they are going to start out with choice on whether seniors keep their current Medicare and other insurance; but eventually as government goes broke and needs the money, there is the tendency to force everybody in the program to moderate the cost of the program. Industry is promoting this system because eventually they are going to reduce their prescription drug coverage to the retirees that they are now paying for. After that comes rationing. I think there are a lot of disadvantages for seniors in this bill, Mr. Speaker.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, adding prescription drugs to Medicare is one of the most unfair burdens that Congress and the President have placed on future generations in a long, long time. I have 10 grandkids and now, for a Medicare program that is already broke, insolvent Congress is adding benefits. We are reaching into the general fund to pay for Medicare. Medicare and Social Security are going to be insolvent within the next 10 to 14 years. Yet we are adding a new prescription drug burden to Medicare, moving into socialized medicine, and making my kids and 10 grandkids and everybody else's responsible to pay for seniors' drug prescriptions. Actually, today's retiring seniors are probably the most wealthy and better off than any generation of Americans. Yet we are placing a burden on our kids, and young workers who are trying to save money to send their kids to college. We are placing a huge burden on my grandkids to pay off the debt. We are actually borrowing the money, Mr. Speaker, to pay for this huge expansion in socialized medicine.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today to talk about how much debt and how much of an increased tax there is going to be placed on my 10 grandchildren and everybody else's grandchildren and children. Let me just review what we have been doing on increased spending. Discretionary increases have averaged 6.3 percent each year since 1996 and 7.7 percent each year since budget balance was reached in 1998. By this chart, you can see the red line where we have taken off on increased spending, not just keeping up with inflation, but 6.3 percent every year, which is two and three times the rate of inflation, and, in one year, four times the rate of inflation. How big can government get? How big do we want government to be? This week we are considering a prescription drug program. The next chart, Mr. Speaker, shows what is going to happen to the total debt of this country. The blue line is the gross Federal debt. The debt held by the public is the green line. Actually, we have two debts in this country. First, is the amount we borrow from Social Security. In 1983, we expanded the Social Security tax, increased the FICA tax, your payroll tax for Social Security, more than ever before in the history of the country and it is still going wrong. In fact, when we started Social Security, it was 1.5 percent of payroll, and now it is 12.4 percent of payroll. Seventy percent of American workers today pay more in their payroll tax than they do in the income tax. So we have been borrowing from Social Security right along, and this is the purple line coming up at the bottom and increasing to $10 trillion. Already today we have a $9 trillion unfunded liability in Social Security. That means if we invested $9 trillion today, with interest it could keep Social Security solvent for 75 years. The alternative is we continue to increase taxes on somebody, someplace, to pay promised Social Security benefits, or we cut those benefits. Now I want to talk about what we are about to approach this week, and that is having the largest increase in entitlement programs that has been passed by this Congress in 39 years. What happened 39 years ago? We amended the Social Security bill in 1965 to include Medicare. The original estimates of the cost of Medicare as a percent of GDP is now just a small fraction of the actual costs of Medicare. In fact, Medicare is going bankrupt. It is going broke. There is going to be less money coming into Medicare and to Social Security than what is required to pay promised benefits. So we have been doing fiscal creative accounting, using general fund money trying to keep up. But now we are adding to the costs to Medicare by adding prescription drugs. Dr. Thomas Sowell is a senior fellow at Hoover Institute. He says, ``Why should seniors be singled out to be subsidized by taxpayers, except that their votes are being sought after by both parties?'' That was true in 1965. Both sides of the aisle decided they wanted to get more votes from seniors, so they amended Social Security to add the Medicare program. Now both sides of the aisle and the President are trying to get more votes from seniors, so we are adding a prescription drug program. I have 10 grandchildren, Mr. Speaker. They are going to be saddled with the largest debt in history. I see our Pages in this Chamber. They are the generation at risk. Why should they be asked to pay for a senior drug program? The retireing seniors today are probably the wealthiest seniors we are going to ever see in history. We are losing our manufacturing base. We are spreading ourselves so thin with more government spending that we are mounting a massive debt for our kids and our economy. Grandparents; as you look at prescription drugs, I think you have got to start thinking about what we are saddling our kids with. I would like to pose a question: Why should my kids, who are trying to save enough money for their kids to go to college, pay for prescription drugs for seniors? Let me ask another question, and that is about my 10 grandkids. Why should we pass this large increase in entitlement programs, which is going to mean a huge debt for all grandkids to deal with? What we are doing is increasing the debt of this country more rapidly than ever before in history. It took the first 200 years of this Congress, of this Nation, to amass a $450 billion debt, the first 200 years. And now we are having a debt increase that we are passing on to our kids that amounts to about $450 billion per year.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, It is a sincere pleasure to recognize the finalists of the 2003 LeGrand Smith Congressional Scholarship Program: Ashley Herlein of Spring Arbor, Michigan; Kristen Przybylski of Clinton, Michigan; Brian Jones of Battle Creek, Michigan; and Evelyn Levine of Albion, Michigan. This special honor is an appropriate tribute to the academic accomplishment, demonstration of leadership and responsibility, and commitment to social involvement displayed by these remarkable young adults. We all have reason to celebrate their success, for it is in their promising and capable hands that our future rests. The finalists of the LeGrand Smith Congressional Scholarship Program are being honored for showing that same generosity of spirit, depth of intelligence, and capacity for human service that distinguished the late LeGrand Smith of Somerset, Michigan. They are young men and women of character, ambition, and initiative, who have already learned well the value of hard work, discipline, and commitment. These exceptional students have consistently displayed their dedication, intelligence, and concern throughout their high school experience. They stand out among their peers due to their many achievements and the disciplined manner in which they meet challengers. While they have already accomplished a great deal, these young people possess unlimited potential, for they have learned the keys to success in any endeavor. As a Member of Congress of the United States of America, I am proud to join their many admirers in extending our highest praise and congratulations to the finalist of the 2003 LeGrand Smith Congressional Scholarship program.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, I rise today in recognition of the contribution and service of Mr. Scott Giles to the United States Congress. Scott is an outstanding public servant, truly committed to effecting positive change and improving the lives of all Americans. I have had the pleasure of knowing Scott since January 2001, when he was appointed to serve as deputy chief of staff for the House Committee on Science. And as Chairman of the Subcommittee on Research, I have had the benefit of Scott's expert advice and diverse legislative talents on a wide range of issues. Scott's expertise on Federal research and development and education policy has been key to our Subcommittee's legislative success, and to the Science Committee's growing influence in the House of Representatives. Scott was lead staff negotiator on several pieces of legislation we successfully sheparded through the Committee, to the House floor and eventually, onto the President's desk. Most notable of these pieces of legislation were the Cybersecurity Research and Development Act (Public Law 107-305) and the National Science Foundation Authorization Act of 2002 (Public Law 107-368), which included the National Math and Science Partnerships Act and the Tech Talent Act. But Scott's impressive career began long before he came to the Science Committee. From 1982 to 1986, he served as legislative director for his Rochester, NY hometown Representative, the Honorable Frank Horton (R-NY). In 1986, he took a job as a senior associate and team leader at Cassidy & Associates. At Cassidy he provided government and public affairs services to colleges, universities, hospitals and non- profit organizations. After 10 years at Cassidy, Scott and his wife, Kate headed to the University of Virginia, where Scott pursued a doctorate in ethics. In 1997 he felt the lure of Congress once again when he was asked to serve on the professional staff of the Senate Committee on Health, Education, Labor, and Pensions HELP. On the HELP Committee, Scott advised the Chairman on budget, education and research policy, served as the Committee's chief staff negotiator for budget and appropriations and was a principal staff member on the National Science Foundation Authorization Act of 1998, and the Higher Education Act Amendments of 1998. Now, Scott, Kate and their three children, Abigail, Sam and Eliza, are embarking on a new adventure. They are moving north to Vermont, where Scott has been appointed Vice President of Policy, Research and Planning for the Vermont Student Assistance Corporation. Although the students and universities in Vermont are thrilled with this move, Congress is losing a valuable, incredibly talented staff member. On behalf of Chairman Boehlert and all the members and staff of the Science Committee, thank you for your service to Congress. Scott, we wish you all the best in your future.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, education is the key for our Nation's future prosperity and security. The formidable responsibility of molding and inspiring young minds to the avenues of hope, opportunity and achievement rests partly in the hands of our teachers. Today I would like to recognize a teacher from Union City, MI that most influenced and motivated exceptional students in academics and leadership that were winners of the LeGrand Smith scholarship. Dianne Parkison teaches history at Union City High School. She is credited for instilling in students an enthusiasm for the subject and for life itself. In one student's own words, ``Not only has Mrs. Parkison taught me a better respect for the struggles that have been endured throughout the history of the United States, she has taught me a lot about life.'' The respect and gratitude of her students speaks well of Mrs. Parkison's ability to challenge young minds to stretch the mental muscles and strive to achieve the best that is in them. Dianne Parkison's excellence in teaching challenges and inspires students to move beyond the teenage tendency toward surface study and encourage deeper thought and connections to the real world. No profession is more important in its influence and daily interaction with the future leaders of our community and our country, and Dianne Parkison's impact on her students is certainly deserving of recognition. On behalf of the Congress of the United States of America, I am proud to extend our highest praise to Mrs. Dianne Parkison as a master teacher. We thank her for her continuing dedication to teaching and her willingness and ability to challenge and inspire students for leadership and success.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, education is the key for our Nation's future prosperity and security. The formidable responsibility of molding and inspiring young minds to the avenues of hope, opportunity and achievement rests partly in the hands of our teachers.- Today I would like to recognize a teacher from Grand Ledge, Michigan that most influenced and motivated exceptional students in academics and leadership that were winners of the LeGrand Smith scholarship. Mr. Kim Spalsbury teaches government and American literature at Grand Ledge High School. He is credited for instilling in students an enthusiasm for the subject and for life itself. In one student's own words, ``Mr. Spalsbury is dynamic, knowledgeable and puts forth a lot of extra effort.'' The respect and gratitude of his students speaks well of Mr. Spalsbury's ability to challenge young minds to stretch the mental muscles and strive to achieve the best that is in them. Kim Spalsbury's excellence in teaching challenges and inspires students to move beyond the teen-age tendency toward surface study and encourage deeper thought and connections to the real world. No profession is more important in its influence and daily interaction with the future leaders of our community and our country, and Kim Spalsbury's impact on his students is certainly deserving of recognition. On behalf of the Congress of the United States of America, I am proud to extend our highest praise to Mr. Kim Spalsbury as a master teacher. We thank him for his continuing dedication to teaching and his willingness and ability to challenge and inspire students for leadership and success.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, education is the key for our Nation's future prosperity and security. The formidable responsibility of molding and inspiring young minds to the avenues of hope, opportunity and achievement rests partly in the hands of our teachers. Today I would like to recognize a teacher from Jerome, MI, that most influenced and motivated exceptional students in academics and leadership that were winners of the LeGrand Smith scholarship. Margo Fenstermaker teaches English at Hanover Horton High School in Horton, MI. She is credited for instilling in students an enthusiasm for the subject and for life itself. In one student's own words, ``Mrs. Fenstermaker is an inspiring, encouraging and optimistic woman who instills a sense of respect for others.'' The respect and gratitude of her students speaks well of Mrs. Fenstermaker's ability to challenge young minds to stretch the mental muscles and strive to achieve the best that is in them. Mrs. Fenstermaker's excellence in teaching challenges and inspires students to move beyond the teen-age tendency toward surface study and encourage deeper thought and connections to the real world. No profession is more important in its influence and daily interaction with the future leaders of our community and our country, and Margo Fentersmaker's impact on her students is certainly deserving of recognition. On behalf of the Congress of the United States of America, I am proud to extend our highest praise to Mrs. Margo Fenstermaker as a master teacher. We thank her for her continuing dedication to teaching and her willingness and ability to challenge and inspire students for leadership and success.

Mr. SMITH of Michigan

Mr. SMITH of Michigan. Mr. Speaker, education is the key for our Nation's future prosperity and security. The formidable responsibility of molding and inspiring young minds to the avenues of hope, opportunity and achievement rests partly in the hands of our teachers. Today I would like to recognize a teacher from Pittsford, Michigan that most influenced and motivated exceptional students in academics and leadership that were winners of the LeGrand Smith scholarship. Mr. John Irelan teaches social studies at Pittsford High School in Pittsford, Michigan. He is credited for instilling in students an enthusiasm for the subject and for life itself. In one student's own words, ``Mr. Irelan is not the type of teacher to sit in the lounge during his free time; he is in his room or the hallway to have contact with the students. As my psychology, sociology, economics and government teacher, he always relates course material to `real-life' situations.'' The respect and gratitude of his students speaks well of Mr. Irelan's ability to challenge young minds to stretch the mental muscles and strive to achieve the best that is in them. John Irelan's excellence in teaching challenges and inspires students to move beyond the teen-age tendency toward surface study and encourage deeper thought and connections to the real world. No profession is more important in its influence and daily interaction with the future leaders of our community and our country, and Mr. John Irelan's impact on his students is certainly deserving of recognition. On behalf of the Congress of the United States of America, I am proud to extend our highest praise to Mr. John Irelan as a master teacher. We thank him for his continuing dedication to teaching and his willingness and ability to challenge and inspire students for leadership and success.