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!