Budgeted-Fund Rules Should Enhance Fulfillment

WJ Editorial
The Waterways Journal
13 December 2010

Lower Mississippi River dredging operations are deteriorating these days. The government, apparently, is stuck on "tilt" when it comes to adjusting budgetary rules in order to allow funds to fulfill the purpose for which they are being budgeted. The Mississippi River Valley Engineer Division commander, Maj. Gen. Michael Walsh. insists on enforcing new rules he mandated late in the budgeting process.

Under the rules, the budgeted money must be spread out evenly over the fiscal year.

Industry first heard of the rules on September 1. and there was no opportunity for response.

This is the message that Gen. Walsh delivered December 1 in New Orleans where industry representatives pleaded for alteration of the dredging rules.

The nub of the issue is simple. While the new budget rules seem to depend on or be based on river conditions during normal years, there hasn't been a normal year on the Lower Mississippi in five years. For example, there was early high water last year, and five river crests that required considerable expenditures much earlier than normal. Funds are needed when they are needed. not along a trite horizontal graph line that covers expenditures during months when no dredging is required. if one does not design a budget that fulfills the purpose set out at the beginning. what's the use of adhering to it. It became apparent to stakeholders that Gen. Walsh was not to be swayed. He didn't want participants to walk away from the meeting saying, "This didn't work." Even he admitted that the solution was not easy. The bottom line, as Walsh explained, is that what President Obama decides that dredging the Mississippi River is a priority. needed funds will be forthcoming.

In the past when operations and maintenance funds ran out. Congress could be lobbied for supplemental funds to get the job done. That, too, is now ruled out.

"There is a solution. but the feds won't allow it. More than $6 billion is gathering dust in the Harbor Maintenance Trust Fund, according to Sean Duffy, executive director of the Gulf States Maritime Association. which represents deep-draft shippers. Duffy believes this is an obvious solution because the money (a tax on the value of imported cargoes) is collected to maintain waters and harbors. But the Office of Management of the Budget and Congress won't allow it. Does that tell us that the trust fund treasure chest is be filled with worthless IOUs as are some other trust funds? will the government not allow the money to be spent for the purpose it was collected?

This issue is critical because having a viable Mississippi River makes it possible for the United States to compete with grain exports from countries like Argentina and Brazil. where grain must be trucked to deep-water ports. Under the present dredging rule enforcement, stakeholders are afraid that the river will become less viable due to clogged channels and possible restricted traffic. Silted channels could require that barges be light-loaded, thus reducing the capacity and value of the cargo. Once foreign shippers perceive this to he true, it is feared then will ship their grain elsewhere.

This issue represents a perfect example of how- the Mississippi River is a major artery to carry the lifeblood of' the nation. If only government officials would acknowledge this during such a critical time in our economic recovery!