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AMY KLOBUCHAR FOR MINNESOTA
P.O. BOX 4146
ST. PAUL, MN 55104-4146
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Minnesota Plan to Bring Ethics Reform to Washington |
“It is great to be here at the Humphrey Institute at the University of Minnesota. I was proud to be a Mondale Fellow here several years ago, and I’m proud to see that Vice President Mondale is joining us today. Thank you.
“A little-known historical fact is that the Humphrey Institute, actually the lobby outside, was the site of my wedding reception about 13 years ago almost exactly. And as you walk out today, it probably won’t seem like a very romantic place. But you have to imagine it with red and purple balloons, with a band, with fuchsia bridesmaid dresses, and then it’s almost like you were there.
“So it is with very fond memories that I join you here today at the Humphrey Institute.
“I’m honored to be here to talk about how we, the people of this nation, are going to change the way things work in Washington. This is a conversation about ethics reform. I know that people often talk about ethics reform as if it were some wonkish topic reserved for public policy journals that only Larry Jacobs reads, and they think of it usually as a postscript on a laundry list of things that we need to do to change Washington.
“But, with all due respect to the graduate students that are here today, it is time to take ethics reform out of the political science seminar room and into the halls of Congress.
“Ethics is something that is woven into the very fabric of how our government does business. And ethics reform is an issue that goes to the heart of our democracy, to the public trust and respect that’s essential to the health of our constitutional system.
“Many Americans believe that undue influence of powerful interests compromises the ethical character of our institutions and our leaders in Washington casting a shadow over the very legitimacy of the laws and the policies that come out of Washington. The American public’s deepening concern over the integrity of our legislative process means that ethics reform is now central to almost every public issue whether it’s energy policy, or health care, whether it’s tax reform, or whether it’s homeland security. The ability of Congress to deal credibly and forthrightly with these other issues depends on reforming their own ethical rules and behavior.
“The long-term challenges we face in this country are enormous. They include high energy prices and the growing dependency on foreign oil; health care costs that remain out of control; fiscal mismanagement that’s driving our nation deeper into debt; global warming that threatens the future of our environment and our economy; and a wide range of international security threats.
“I believe that there are solutions to these challenges. While not always immediate, these solutions are within our grasp. We can achieve energy independence by investing smart and having some guts to take on the oil companies. We can get this country back on the right fiscal track and move more forward to affordable health care. We can regain our moral compass in foreign affairs and work with the rest of world to combat terror.
“In Washington, though, the American people have not seen the bold change of direction that we need to make these solutions happen. Instead, our leaders are bogged down in ideological swamps, or beholden to powerful entrenched interests, or mesmerized by short-term political gamesmanship. You can pick your metaphor. You can pick your image, but you know it’s a problem and we need to see change.
“We the American people know what we want from Washington is this: a government that’s focused on doing what’s best for our nation in securing a better and more prosperous future for our people.
“To do that, Washington needs to make a major change in how it does its business. As General Omar Bradley said back in 1948, ‘we need to start steering our ships by following the stars, instead of the lights of each passing ship.’
“As a prosecutor I have seen first hand how the well-connected and powerful do not face the same challenges as middle class families.
“Everyday I go into the courthouse with the mission that we’re going to treat people the same no matter where they come from. When we prosecute a wealthy well-connected person the courtroom is packed with their friends, and I get all kinds of calls, ‘he’s such a good guy; he shouldn’t go to jail.’
“When we prosecute someone who is middle class or poor, they’re lucky if their mom can take the day off work to stand behind them in the courtroom. And I figure my job is to even the playing field and to treat people the same no matter where they come from. Well that is not what’s happening in Washington today.
“This was never as apparent as when we had a case where we prosecuted a top state court judge who was accused of stealing 400,000 dollars from a mentally disabled woman, who has an intelligence level of about three years old and lives in a world of dolls and stuffed animals.
“This guy had the audacity to steal that money from her, and when it came for the sentencing we walked into that courtroom and the courtroom was packed with his friends and believe me when people go to jail they need their friends, but it was a stark contrast to what we usually see in the Hennepin County Courthouse. And we walked in there and there were all kinds of movers and shakers there to say he shouldn’t go to jail, and we were asking for 69 months in prison. All we had were two people on our side to testify. They even had the former Miss America testify for him. That didn’t bother me since I’m the former Miss Skyway News of March of 1988.
“But in any case this went on and on and near the end of the case I was sitting out in the hallway and these two guys walked in. They were African American, the only two African-Americans in the court room except for the court reporter, and they said, ‘Is this where the judge is getting sentenced?’ I said, ‘Yeah. That’s it.’ They said, ‘Can we go in?’ I said, ‘Yeah, you can take your hats off. You can go in.’ They said, ‘Well you know we’ve been in some of your cases.’ I said, ‘That’s ok.’ They said, ‘You know, we figured, if we’ve gone to jail, this guy should go to jail.’ And I said, ‘I think you’re exactly right.’ And they went in and they sat in the front row. The judge on the case still remembers them. They’re shaking their heads, nodding their heads, and there was a break and they left.
“And about five minutes later they came back and they said, ‘You know what? We had something to do, but we think you need us in there. And I said, ‘You’re exactly right.’ And we ended up getting the 69 month sentence that we asked for. And to this day I think of those guys as our guardian angels because they were there to say you can’t have two systems of justice — one for the rich and powerful, and one for everyone else. And you can’t have two rules in the way we do business — one for members of Congress, and one for everyone else. And I’m afraid that’s what’s been going on in Washington D.C.
“Now we all know that there’s always been big money in Washington. And we also know that over the years members of both parties have gotten in trouble and been found to be corrupt. We all know this is not a Democratic problem or a Republican problem. That this is a Washington problem.
“And it’s a Washington problem that has reached unimaginable depths in the last few years. Maybe that’s because the money has just gotten too big. Or maybe it’s because we’ve had one-party rule where the constitutional system of checks and balances has broken down.
“No matter why, it seems that a day doesn’t go by without another headline about corruption in Washington. Just this month, a jury convicted David Safavian, the former chief of staff at the General Services Administration, on four counts of lying and obstructing justice involving his relationship with lobbyist Jack Abramoff.
“Safavian, a presidential appointee, used his top position in a federal agency to help Abramoff in his business dealings by passing along sensitive government information — while Safavian accepted bribes in the forms of luxury trips, and cigars and scotch.
“On the opposite side of aisle, we’ve recently heard a lot about Democratic Congressman William Jefferson from Louisiana, who allegedly took hundreds of thousands of dollars in bribes and jobs for his family members in exchange for help with business ventures. The FBI even found 90,000 dollars in cash in Jefferson’s Capitol Hill freezer.
“90,000 dollars in a freezer is a pretty clear example of what Walter Mondale once called ‘The scandal of big money in American politics’ ‘shaming the most sacred of American processes.’
“Thanks to the pervasive influence of big money in Washington, America now has a health care policy that was written with the pens of the drug companies, and an energy policy that was written behind closed doors with the pens of the energy industry.
“Since 2000, the pharmaceutical industry has contributed almost 84 million dollars to candidates for public office. And what did they get in return? A government that doesn’t negotiate with them to get lower drug prices, and a government that won’t allow the safe legal re-importation of drugs from Canada.
“In fact, the centerpiece of the drug companies’ work was Medicare Part D. My mom’s a retired teacher, and she says Medicare Part D got the grade it deserved from the beginning.
“And if you don’t believe me about this problem there is a recent study that came out just in the last week that show that for patients that are with the federal Veterans Affairs Administration – their drug prices for the tops 22 drugs are 50 percent lower than those same drugs are with Medicare Part D and that’s because Veterans Affairs negotiates with the drug companies and Medicare Part D does not.
“Likewise, the oil compnaies contributed 95 million dollars to candidates during the same period. And what did they get? Billions of dollars in tax breaks, while we all suffer at the pump.
“The deep influence of big money in Washington has created a disturbing imbalance in our democratic system —the richest and most powerful companies get their way, while the concerns of most Americans are left at the sidelines. Government that promises to be of, by and for the people is instead being sold to the highest bidders.
“Business as usual in Washington is a cause for despair among Americans from all walks of life and all political points of view. The public knows that elected officials cannot truly represent them if they’re constantly in thrall to powerful special interests. And yet the American people bear the costs.
“When our leaders in Washington curry favor with the oil companies, we all pay more at the pump because they’ve failed to invest in renewable energy. When our leaders in Washington pass a bill to help the big drug companies, we all pay more because they’ve banned negotiation on prices. When our leaders in Washington hand out no-bid contracts to their friends and refuse to oversee billions of dollars allocated in Iraq and New Orleans, we the American people are the ones who end up paying the bills.
“Let’s change Washington so as Teddy Roosevelt used to say, ‘all Americans are on an equal footing.’
“Today, I’d like to outline some key changes that we can bring to Washington to repair the ethical foundations of Capitol Hill. These are not utopian proposals. They are very attainable, but they also address the fundamental issues.
Oversight of contracts and the legislative process
“First, I propose that we bring back real congressional responsibility and oversight for what happens in our nation’s capital. Instead of the contractors and the special interests frittering away our money, let’s make sure Congress is holding everyone accountable, including themselves.
“What’s the problem here?
“Well, how about no-bid contracts? Sweetheart contracts and jobs to political friends and family members? No management and accountability for how money is actually spent and what results are achieved? And members of Congress and their staff working on legislation and at the same time negotiating for jobs with the companies that they’re legislating?
“Our current leaders in Washington have turned a government of the people into a government where important jobs and lucrative contracts always seem to go to cronies and contributors.
“Let me tell you a story.
“When I was first elected, there were two prominent prosecutors in my office who were vocally opposing me and supporting my opponent. The day after I was elected, I went in and met with them because I had heard that they were excellent prosecutors. And I asked them what jobs they wanted in the office. And one of them said that he wanted to be head of the gang team; and one of them said that she wanted to be head of the drug team. And I put them in those positions. And for eight years they have done their jobs without fear or favor — and I have never for a moment regretted that decision.
“You don’t promote people based on political cronyism. You reward them for the work that they do and the positive results they achieve. We haven’t seen enough of that in Washington.
“In Iraq, Halliburton and its subsidiaries have received more than 20 billion dollars in government contracts. Halliburton continues to receive government money despite findings by Pentagon auditors that it over-charged taxpayers to the tune of 1.4 billion dollars.
“Independent studies have concluded that Halliburton charged as much as nine times more than it should have for the cost of delivering gasoline to Iraq. And we could have used that money to pay for body armor for our troops or health care for our veterans. Instead, Halliburton was allowed to charge taxpayers, 45 dollars for a case of soda, 100 dollars for a bag of laundry, 10,000 dollars per day to house its employees in a Kuwaiti hotel, and 7,500 dollars a month for leased SUVs and trucks.
“In fact, a recent congressional report identified nearly 750 billion dollars worth of federal contracts that failed the smell test — where there was possible waste, fraud, abuse or mismanagement.
“The New York Times recently reported that at least 90 former officials from the Department of Homeland Security have taken jobs working to help companies obtain billions of dollars in contracts to help companies obtain billions of dollars in contracts from the same government agency, Homeland Security, that they used to work for.
“So, what’s the new direction that Washington needs to take?
“Let’s get the facts out for everyone to see. Let’s recover all the excess spending we can. Let’s prosecute the offenders when laws have been broken. And let’s never allow this to happen again.
“Current law requires an open competitive bidding process for most government contracts. But there are enormous loopholes that are being exploited every day. We need to close these loopholes to ensure that there is real competitive bidding, and we need to change the rules so that former members of Congress and their staff can’t turn around and negotiate for jobs and obtain contracts or lobbying work during and after they leave public service.
“When there does need to be an exception to competitive bidding laws, we must have full disclosure about how the contract was awarded and how it’s been monitored. And with all contracts we need to watch the money. In my job, in my office when we have a white-collar case at my office, we always say ‘follow the money.’ And that’s how you find the bad guy.
“Stopping this type of behavior in Congress should be considered an emergency. But you won’t see any flashing lights of police cars because this example is just part of the pervasive influence of powerful special interests on Capitol Hill. These special interests get their way and the public loses out every time.
“Serious reform of the process also means letting some light into the halls of Congress. We should require that conference committee meetings and deliberations be televised and open to the public and that all conference reports identify changes from House and Senate versions. We should require that lobbyists disclosures be made once a quarter and be available on the Internet.
Public service not perks
“Second, I propose that we change the rules in Congress so that our leaders will stay focused on public service, not paid perks.
“One-party rule in Washington has converted a government for the people into a government that gives away huge tax breaks for the wealthiest among us, with government officials taking luxury trips and other lucrative perks from special interests.
“Under current ethics rules in Congress, members are permitted to accept reimbursement of payment in kind from a private source for necessary transportation, lodging, and reasonable related expenses for fact-finding trips, meetings, speeches, conferences or similar events officially-connected with their duties as an officeholder.
“Maybe you or someone you know has gotten one of those phone call solicitations claiming you’ve won a free prize or inviting you to take a free trip to Florida or somewhere to look at a timeshare condo. Well, both you and I know perfectly well there’s no such thing as a free prize or a free trip. But for members of Congress and their staff, they get lots of free trips and perks.
“According to a study of thousands of records by Northwestern University’s Medill News Service, lawmakers from both parties and their staff members accepted around 23,000 privately-sponsored trips worth nearly 50 million dollars between January 2000 and June 2005.
“It’s impossible to believe that all of these trips were for legitimate purposes, especially considering the fact that they included $500 a night hotel rooms.
“Taxpayers deserve to know, for example, 30,000 thousand dollars. In fact, it was just one of 527 such trips that broke the 10,000 dollar barrier.
“Not just trips are a problem. Under current rules, members of Congress are permitted to receive gifts and meals.
“So, what’s the new direction that Washington needs to take?
“We need Minnesota-style ethics reform with a new law that bans all gifts, all free travel and all free meals. Minnesota regulators and elected officials can’t even take a cup of coffee from anyone with business or contracts before them. No privately-funded travel. No steak dinners. No caviar. No scotch.
“Here in Minnesota, contributions by big givers and lobbyists are limited. That’s the way we do it here. There’s no reason we can’t do the same thing in Washington.
Stand by your pork
“Third, I propose that Washington get control of the legislative procedures that have led to runaway government spending.
“Ripe for reform is a practice known as congressional earmarking. It has opened a nice back door in the budgets which members of Congress exploit to conceal their favorite spending projects.
“It’s interesting as some of you with a farm background may know, the term earmark actually comes from the method of marking cattle on their ears to identify runaway livestock. It’s ironic, to say the least, that this is the term now used to describe hidden projects that have driven runaway spending contributing to the budget deficits for which we now pay 800 million dollars a day in interest.
“Discretionary government spending is out of control. The Cato Institute estimates that discretionary spending has gone up almost 50 percent since this president took office. Last year Congress earmarked 53 billion dollars on 16,000 projects promoted by special interest earmarks. That’s money that could and should have been spent on efforts to solve the big policy challenges that our nation faces.
“Normally, budget items that benefit all Americans are subject to debate and disclosure and are reviewed through the appropriations process in Congress. Pork-spending evades that process and allows members of Congress to obtain funding for a specific pet project, like the bridge to nowhere in Alaska, a rain forest in Iowa, or a waterless urinal in Michigan.
“Bill Clinton’s bridge to the 21st century has been hijacked into a pork-barrel bridge to nowhere. And it’s time for a change.
“So, what’s the new direction that Washington needs to take?
“End earmarking. Dismantle the hiding places for secret discretionary spending.
“If they want funding for special projects, then members of Congress should be required to justify it in front of the American people during a public debate in the halls of Congress. As someone recently said, ‘stand by your pork.’
“And if the public finds out that it’s a complete and utter misuse of public funds done to curry favor with someone who’s helped that member of Congress, then that member should stand by their pork and see what happens.
The fox shouldn’t be guarding the henhouse
“Finally, the enforcement system for ethics violations must change in Washington. The current system of enforcing congressional ethics rules is a real bad joke. The problem? Right now, Congress allows the foxes to guard the henhouse.
“Earlier this year, the New York Times described the House Ethics Committee, also known as the House Committee on Standards of Official Conduct, as a laughable oxymoron, a contradiction in terms. In 1997, House Republican and Democratic leaders established an informal ethics truce, agreeing not to pursue misconduct charges against each other’s members.
“Between 1997 and 2003, only two ethics cases were filed. In 2005, the Ethics Committee did not function at all and continues to be more or less non-functional.
“So, what’s the new direction that Washington needs to take?
“Serious reform requires serious enforcement. We need to support Senator Obama’s proposal for an office of public integrity in Congress — an independent, nonpartisan, professional office that would be responsible for enforcing the ethics rules.
“This proposed office would investigate lobbying disclosures and report annually to the congressional ethics enforcement commission. The commission would be composed of nine members serving four-year terms and including at least one former judge and one former member of Congress. This commission would investigate cases of lobbying and alleged violations or congressional rule violations based on sworn complaints by any American citizen. The commission would be able to provide evidence to the Attorney General or refer matters to the full House and Senate ethics committees for adjudication. In addition to that, we should increase the penalties for violations.
“As a prosecutor, I know that true enforcement demands checks and balances. Congress cannot be its own judge and jury. I can’t tell you how many defendants that have come through our courthouse who would love to be their own judge or pick their own jury. It doesn’t make sense for them to do so — and it doesn’t make sense for a member of Congress to do it either.
“I want Congress to adopt tougher ethics rules. But when it happens, I also want them to accept much tougher enforcement.
“As Senator Paul Wellstone once said, ‘Politics is not about money and power games. It is about the improvement of peoples’ lives.’
“The disproportionate influence of a few ahead and above the interests of all Americans can only be stopped if we reform the way that Washington does its business. I’m proposing to take Minnesota’s best ethics rules to Washington. We have tried it their way and it isn’t working. It’s time to try our way.
“Although there is public pessimism about the will of Congress to clean up its own house and reform the way it does business, I am optimistic that reform can be achieved through a clear focus on necessary and achievable measures, backed by broad public pressure and enlightened leadership.
“The reform proposals as I’ve noted today are not utopian. They are not simply interesting discussion points for the seminar room. These proposals are attainable, workable and bipartisan or nonpartisan in nature. Minnesota’s experience proves it.
“In our state, legislators and others in government must abide by strict ethical rules. Those rules were passed more than a decade ago, supported by both Democrats and Republicans. In fact, they passed unanimously through the Minnesota Senate, and by 117 to 13 vote in the house. It was Republican Governor Arne Carlson who signed them into law.
“Serious reform means that we must be willing to speak out against the problem whether it’s Democrats or Republicans. And I think there need to be some new voices in Washington to get things moving back in the direction that’s necessary for the health of our democracy and the well-being of our nation.
“I believe reform is possible. But, it will take more than the shaming of a few Democrats and Republicans. It will take tough choices to restore public trust in government, put an end to the perks, and purge the influence of special interests. No more band-aid solutions or lip service to reform. Congress needs to re-earn the public’s trust.
“As I mentioned at the start of my talk, there is hardly any issue of greater importance than ethics reform for our nation’s future, because it touches on every public policy issue and the very process by which we make our laws. Business as usual in Washington not only generates bad public policy and wasteful spending. It also erodes public trust in the integrity of our government institutions, our elected leaders and our laws and the law-making process itself. This corrosive effect undermines public faith in our democratic institutions at precisely the time when we need people to rise up and rescue our democracy.
“When it comes to speaking up for America’s democratic values and ideals, there has hardly been a more eloquent orator than Hubert Humphrey.
“So it’s only fitting that we’re here at the Humphrey Institute to talk positively about what it will take us to reform Washington.
“I don’t know how many of you have ever had chance to visit Hubert Humphrey’s grave at Lakewood Cemetery, near Lake Calhoun – it’s the same place where Paul and Sheila Wellstone are laid to rest.
“On Humphrey’s gravestone, there is an inscription, a quote from Humphrey himself. It says, ‘I have enjoyed my life, its disappointments outweighed by its pleasures. I have loved my country in a way that some people consider sentimental and out of style. I still do. And I remain an optimist with joy, without apology about this country and about the American experiment in democracy.’
“I, too, remain optimistic. And hope we all do. America truly is a grand experiment in democracy. And one of the things that has worked best in this experiment over the years is that we, the American people, have not been shy about demanding accountability and forcing change from our leaders and our institutions in Washington.
“This is yet another time when we must stand up and demand change in Washington. The American people must believe this nation is theirs, responsive to their votes and aspirations, and that all elected officials are truly public servants. Americans must be able to trust that ours is truly a government of, by and for the people. And now is the time for Congress to re-earn the public’s trust by embracing ethics reform today.
“Thank you.”
June 29, 2006
Humphrey Institute of Public Affairs, University of Minnesota |
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