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03-09-2002

CONGRESS: Action Versus Inaction

Lightning can indeed strike twice. But as lawmakers on both sides of the
aisle watch the latest steps toward compromise by Washington's oddest new
power couple-George W. Bush and Edward Kennedy-many are hoping that it
won't strike the second time before Election Day 2002.

The first thunderbolt struck last spring when Kennedy, the top Democrat on the Senate Health, Education, Labor, and Pensions Committee, negotiated a deal with the White House that led to passage of a bipartisan education bill substantially giving the Democrats what they had wanted for years-but also effectively stamping Bush's credentials as the "Education President." Now Massachusetts' unabashedly liberal senior Senator and the conservative Republican White House are playing Let's Make a Deal on a patients' bill of rights.

The outcome of their discussions will say a lot about who's winning the ongoing tug-of-war in Washington. On one side are Republicans and Democrats who want to accentuate policy differences that they can use as partisan campaign issues. On the other side are Republicans and Democrats who want to narrow policy differences so that legislation can actually become law.

The tension is not new, of course. But with Congress so evenly divided between the two parties, the tension has become more obvious. Lawmakers weigh issue after issue based on whether it could give one party or the other a chance to win more seats in the next election. Both Democrats and Republicans justify gridlock on the grounds that in the next Congress, they'll be in a better position to pass legislation to their liking.

Thus, many congressional Democrats are viewing the Kennedy-Bush talks on a patients' bill of rights "with alarm," said Rep. Robert T. Matsui, D-Calif. Many worry that last year's high-profile compromise on education cost the Democratic Party its long-standing advantage with voters on that issue. And, especially now that the Republican President is tremendously popular, those Democrats are deeply suspicious of any bipartisan deal that might chip away at whatever edge they still have on such issues as health care and the environment.

Congressional Republicans are equally nervous about any potential compromise that might alienate their traditional contributors or their base of voters, because midterm elections often hinge on which party can most effectively turn out its core supporters. Rep. John A. Boehner of Ohio, the House Republicans' key negotiator on last year's education package, observes, "It is an election year, which bring its own set of dynamics to the legislative process, mostly all negative."

In Matsui's view: "There is the desire to highlight ... differences between the two parties going into the general election. And I suspect we will see more of that in the House and on the Republican side in the Senate."

Kennedy, in a recent interview on CNN marking his 70th birthday, was asked about Democrats' concerns that their party could suffer politically because of the education compromise.

"Have you somehow unwittingly given the President a leg up, and the Republicans, on this issue?" Judy Woodruff asked.

"We ought to take it as a badge of honor that we have been able to work this out," Kennedy replied. "Otherwise," he continued, "there's not a great deal of reason for being. Otherwise you're just another-you're a party that has a label without a commitment."

Will the dynamic that produced an education bill prove to be the exception in the 107th Congress? Or can it be replicated on other issues-such as a patients' bill of rights, energy legislation, and post-Enron business reforms?

For there to be any bipartisan deals this year comparable to the education breakthrough, Bush would undoubtedly have to make striking a bargain a priority. For lawmakers of both parties, the perceived political price of resisting a Bush-backed compromise might then outweigh their qualms about losing a promising defining issue for the fall campaign.

The Education Experience

Before Bush's election, partisan attempts to pass a major education bill had failed two years in a row. Sen. Judd Gregg of New Hampshire, who was the GOP's top negotiator in the Senate, likens the attempts to pass an education package in 1999 and 2000 to running into a brick wall. "It was part of the education experience of the education bill," he recalls. In a closely divided Congress, neither side had enough clout to ram through its education priorities.

When a compromise pushed by centrist Democrats Joe Lieberman of Connecticut and Evan Bayh of Indiana reached the Senate floor in May 2000, it won only 13 votes. An aide to one moderate Democrat says: "We had a lot of members come up to us and say, `I really like what you're doing, [but] we can't give the Republicans a win in an election year,' or, `The education groups don't like it, and we're afraid to bump them when we're in [an election] cycle.' "

Once the 2000 election was over, lawmakers felt considerable pressure to pass an education bill, largely because Bush had made education a cornerstone of his campaign. Had Democrats not gone along, they'd quickly have been painted as obstructionist. "Bush came out of the election with a big head of steam on education," says Rep. George Miller, D-Calif. "He wasn't going to sit around and do nothing because we didn't want to play."

Bush, who borrowed from the Lieberman-Bayh proposal in crafting his education package, secretly planned to cut a deal with the Senate's 13 centrist Democrats and then push for something similar or more conservative in the House. But Kennedy caught wind of the White House discussions with his more centrist colleagues and inserted himself into the debate, offering to accept a watered-down version of the GOP's beloved private-school voucher proposal. Kennedy said he would back a bill allowing children enrolled in failing public schools to use federal funds for private, after-school tutoring. Republicans were happy to bargain with Kennedy, if he could deliver. He did: All but six Senate Democrats voted for the final version of the bill in December.

On the House side, Boehner had to overcome the resistance of his own party's leadership, which wanted the bill to include such Republican priorities as block grants and private-school vouchers. Just before the bill was to be voted out of committee, Bush met with Boehner and House Republican leaders to make it clear that he backed Boehner's drive to pass a bipartisan bill. Ultimately, the Bush-backed measure sailed through the House, 381-41, in December. And 33 of the "no" votes were Republican.

Who won? Democrats concede that Bush got much of the political credit. And Democrats, including Kennedy, have called Bush's education budget for 2003 inadequate. Yet privately they say that they extracted more money for education from a Republican White House-$4 billion above Bush's original request-than they had thought possible. And Bush, who has repeatedly praised Kennedy for his help, ended up signing a largely Democratic bill.

The President pushed through his student testing requirements, but most of the GOP's other education priorities were dropped or significantly pared back. Even so, Republican Senate negotiator Gregg says, "It isn't everything I would have wanted, but it's a pretty big step."

Simply signing an education package was a major feather in Bush's cap, because it gave him a victory in traditionally Democratic territory. As one Senate Democratic aide puts it, Democrats "who really, really wanted the bill know they gave a huge gift to Bush." Yet Bush had gained considerable ground on education even before taking office. Back in 1996, the Voter News Service exit poll found that voters who declared education was their top priority favored Democratic President Clinton over his Republican challenger, Sen. Bob Dole of Kansas, 78 percent to 16 percent. But in 2000, education voters much more narrowly favored Democratic nominee Al Gore over George W. Bush-52 percent to 44 percent. So, arguably, compromising on education last year may have been wiser for Democrats than bucking the self-styled Education President would have been.

Patients' Rights

If Democrats and Republicans forge a compromise this year on the scale of the 2001 education package, their deal might well involve protecting patients of health maintenance organizations. But although lawmakers are weary from four years of wrangling on the issue and think that they should be able to finally strike an agreement, the political currents may be running too swiftly to let them bridge their differences in an election year.

When Clinton called on Congress to enact a patients' bill of rights late in 1997, many Republicans accused him of trying to resurrect a portion of his national health care plan, which had died in 1994. Nevertheless, by October 1999, 68 House Republicans had turned their backs on their party's leaders, and a bipartisan patients' bill of rights-crafted by Reps. Charlie Norwood Jr., R-Ga., and John D. Dingell, D-Mich.-passed by a healthy 275-151 vote. The next year, the Republican-controlled Senate passed a more modest measure. But House-Senate negotiators failed to resolve the bills' differences, and the legislation expired at the end of the session.

Then, less than a month after the Democrats took control of the Senate last June, newly empowered Majority Leader Thomas A. Daschle, D-S.D., secured passage of a bipartisan patients' rights bill on a 59-36 vote. Bush persuaded Norwood to back a GOP plan that would provide patients a much more limited right to sue. That plan passed the House, 218-213, largely along party lines.

After Bush cut his deal with Norwood, opponents in the business community cringed and braced for an eventual bill signing. But when the events of September 11 turned the nation's attention away from patients' rights, the effort to kill the legislation appeared likely to succeed-until Bush opened a dialogue with Kennedy.

Some Republicans are angry at Bush for again coming to the table with the Massachusetts liberal. They fear that congressional Democrats will be the primary beneficiaries if patients' rights legislation becomes law. Moreover, Republican lawmakers worry that their business allies will punish them by cutting back on campaign contributions if patients win new federal rights.

Robert J. Blendon, a professor of health care policy at Harvard University, says Republican lawmakers "don't think they'll get a lot of thank-you notes," if a patients' rights bill becomes law.

The Bush Administration wants to forge ahead nonetheless. "The President wants to move beyond political pressures to get things done," said Mark B. McClellan, a member of Bush's Council of Economic Advisers and his top health adviser in the White House. Of course, while the President is scoring high points on his anti-terrorism endeavor, passing patients' rights legislation would help negate any charges that he's ignoring domestic problems, a perception that bedeviled his father after the Persian Gulf War.

Some Democrats, meanwhile, are unhappy with Kennedy, because they dread the prospect of Bush's basking in the limelight of a patients' rights victory. "They want to be able to say that the President has no domestic agenda in 2002, so they don't want any signing of anything in the Rose Garden," according to Harvard's Blendon.

Democrats who are struggling to find ways to deflate the popularity of a wartime President and to throw his party on the defensive in the midterm elections are reluctant to remove a major health care issue from their arsenal.

Matsui says that he and many of his colleagues remember another deal that the Massachusetts Senator had a hand in and that Clinton blessed: the 1996 Kennedy-Kassebaum legislation that guaranteed the portability of health insurance for workers who change jobs. "Essentially, that was seen as our solution to health care in America, and [Democrats] basically lost the opportunity [in the `96 election] to talk about the uninsured and those who lacked coverage," Matsui recalls. "I think unless we win, it's not worth taking the issue off the table. And by `win,' I mean [enacting] the Dingell-Norwood bill."

But these days, Kennedy pays less attention to maintaining partisan advantages than many of his colleagues do. While Daschle has yet to appoint Senate conferees to work out the differences between the House and Senate patients' rights bills, he has said that he will give Kennedy some leeway to negotiate with Bush.

Still, the chances for a Bush-Kennedy health care compact appear slim. The Administration and Kennedy remain far apart on allowing patients to sue their health plans, and the White House isn't expected to give in to Democratic demands for a broad right to sue. "A lot of the country is very worried about health care costs," said Bush health adviser McClellan, suggesting that the President is sensitive to the fears of business and the insurance industry that some Democratic provisions would raise the cost of providing health coverage.

And that is a key factor distinguishing the Bush-Kennedy talks on patients' rights from their earlier education negotiations. On education, Bush quickly jettisoned private-school vouchers, which were anathema to the teachers' unions, a key Democratic constituency. But the President is less likely to abandon the corporate community and give in on patients' right to sue-a right vigorously sought by the trial lawyers, who are also prime Democratic allies.

Meanwhile, despite Bush's popularity, Democrats are in a position to drive a harder bargain on patients' rights than they did on education. From the start of his presidential campaign, Bush put education front and center. He has much less of a reputation as someone keenly interested in patients' rights, and so Democrats have less reason to fear opposing him on the issue.

ENERGY

The election-year tensions between making deals and highlighting partisan differences also threaten to prevent passage of energy legislation. Senate Democratic leaders know that enacting an energy bill would blunt Republican charges that they are presiding over a "Do-Nothing" Senate. On the other hand, if Congress does pass a comprehensive energy package and the President signs it into law, Democrats would lose much of their ammunition for attacking Bush's environmental record-which appears to be the closest thing he has to an Achilles's heel at the moment.

Energy-industry lobbyists say that the perfect political solution for Senate Democrats would be to pass a pro-environment bill so different from the House's pro-industry bill that any hope of enacting energy legislation this year would die in a stalemated conference.

Leading Senate Democrats want to toughen fuel-efficiency standards for cars and to block Republican attempts to allow oil drilling in Alaska's Arctic National Wildlife Refuge. The House-passed energy bill barely tightens fuel-efficiency standards at all, and it embraces drilling in the Alaskan refuge.

Senate Republicans, like their Democratic counterparts, are also torn between two strong, divergent political impulses. The Republicans, their staffers say, are being pressured by the Administration to get an energy bill to the President's desk so that he can sign one into law. But GOP Senators are loath to give the Democratic leadership a victory, and they oppose many of the environmental provisions championed by Daschle and by Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M.

The Energy Committee's ranking Republican, Sen. Frank Murkowski of Alaska, is a leading advocate of opening the arctic wildlife refuge to oil drilling. He's running for governor in Alaska, and new oil exploration would result in additional royalties for the state. Facing a $1 billion budget deficit, Alaska might have to reinstate its income tax, which was dropped in 1979 when oil began to flow from the state's North Slope.

Two key Senate Democrats also have personal ambitions entangled in the energy debate. Potential 2004 presidential candidates John F. Kerry of Massachusetts and Joe Lieberman of Connecticut have vowed to filibuster any energy legislation that includes drilling in the refuge. Kerry is also taking the lead in pushing to increase fuel-efficiency standards for cars and light trucks.

Senate Majority Leader Daschle, another possible presidential candidate, won kudos from environmentalists for bypassing the Senate Energy Committee and sending the Democratic energy package directly to the Senate floor. Had the measure taken the normal route, a majority of the largely pro-industry committee likely would have voted for the new Alaska drilling.

Murkowski has blasted Daschle's end run, charging that crafting legislation that can actually make it through Congress will be much more difficult if it is not "debated within the committee so that we formulate positions and vote out the amendments ... on the basis of a support group of both Republicans and Democrats coming together."

Pressures From Above

Murkowski's complaint about Daschle's bypassing a committee is hardly a new one on Capitol Hill. Until recent years, it was common for a committee chairman to work with the panel's ranking minority member in crafting legislation on which they shared expertise and could find ways to compromise. Now, the process is more overtly partisan-with the Senate Majority Leader and House Speaker taking stronger roles in setting the agenda and even drafting legislation.

"When I was in Congress, the chairmen and ranking members had a great deal of power to move legislation they thought was important. And the leadership gave them much more leverage to work the legislation out," recalls former Rep. Leon Panetta, D-Calif. "Today, it is a much different situation."

And Panetta, who also served as Clinton's White House chief of staff, laments that change: "The [House and Senate] leadership is viewed much more today as kind of battlefield commanders who have to run the war and win the battles. And if they aren't winning the battle and fighting, they're viewed as failures, as opposed to, are they helping to govern the county? And governing is not [viewed as] as important as fighting."

For the Democrats' congressional leadership, pension reform will provide one real test of how it will respond to the tension this year between governing and preserving campaign issues. In the wake of the Enron Corp. scandal, Rep. Rob Portman, R-Ohio, has teamed up with Rep. Benjamin Cardin, D-Md., to introduce legislation that would give employees more flexibility in managing their 401(k) retirement accounts. The two lawmakers have worked effectively across party lines on pension issues in the past.

But with many Democrats hoping to use Enron to tar the Bush Administration as being too close to Big Business, some Republicans say they don't expect much progress this year on changing pension rules. "There are Democrats who are interested in doing something reasonable, but on the other hand, it's not in Daschle's or [House Minority Leader Richard A.] Gephardt's interest," says one GOP lawmaker.

Democrats counter that the real test of bipartisan leadership in 2002 will be Bush's. And they doubt that he will pass the test. As evidence that Bush is not serious about bipartisanship, they cite the attack ads that the National Republican Senatorial Committee launched against five Democratic Senators immediately after they voted against an economic stimulus package.

"The fact that the NRSC went on the air sent a message to Democrats that the White House isn't going to take anything into account except their own short-term political goals," contends a Daschle adviser. "If [Bush and his team] are willing to make some compromises which would put them at odds with the right wing of their party, they can get some things done."

When it comes to striking deals, Daschle has his own problems-with liberals in his Caucus. "He does have a vocal minority that doesn't want to find common ground because of their ideological stands," a veteran Democratic lobbyist says. "But if Bush really wants a deal, Daschle has to deal."

And as long as Bush's job-approval ratings remain in the stratosphere, if the President sees a deal he likes, congressional Republicans will almost certainly have to fall into line behind him. "It's a huge advantage for us to be identified with the President today," observes Portman, who is the House Republican leadership's liaison to the White House. "This is not something that members are blind to."

Yet unless the White House shifts into an aggressive matchmaking mode, neither the Democratic nor the Republican combatants on Capitol Hill are likely to overcome the election-year forces that work against cutting significant legislative deals. As former House member Panetta points out, "When you're used to fighting in the trenches, it almost becomes more comfortable to jump back in than try to get out of them."

Staff Correspondents Margaret Kriz and Marilyn Werber Serafini and Reporter Siobhan Gorman contributed to this report.

James A. Barnes National Journal
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