September 25, 2008 in City

Local lawmakers wary of proposal

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The region’s congressional representatives met President Bush’s defense of the sweeping federal proposal to save the ailing financial industry with $700 billion in tax money with caution. The prime-time speech Wednesday aimed to ease rising concerns about the proposal, but local congressional leaders say they weren’t swayed.

“If anything, I think people are becoming less supportive of it,” said Rep. Bill Sali, R-Idaho. “I don’t think Congress is saying we won’t take any action; I just think Congress is saying your plan is not the plan we’re going to go with.”

Common complaints about the plan include the size of the proposal and the need for more oversight in how the money is distributed.

Rep. Cathy McMorris Rodgers, R-Wash., cited those concerns in a statement issued after Bush’s speech.

“There are a lot of questions that still need to be answered,” she said. “I am reserving judgment about the bill until key questions are answered and we have a chance to review the final legislation.”

Sen. Patty Murray, D-Wash., has blamed the crisis on the Bush administration’s failure to regulate Wall Street and issued a statement Tuesday warning against big compensation packages for leaders of the failed companies, another point echoed around the Beltway.

“We need to quickly contain the serious financial situation we face today and help struggling American families, but we need to do it in a responsible way,” the statement reads.

Curt Fackler, chairman of the Spokane County Republicans, said he has “really mixed feelings” about the plan. He stressed the importance of assuring taxpayers their money won’t be spent on big severance packages and of ridding Wall Street of crooked leaders. The focus should be on saving Main Street, he said.

“It’s time for those people on Wall Street who think they can do no wrong to go find another job,” he said. “It makes no sense to put the same people in charge.”

Fackler’s words are echoed by Republicans and Democrats alike.

“The guy who was sitting there while this was all happening, I don’t think I trust him to be the guy sitting there with the purse strings doling it all out,” said Thom George, chairman of the Kootenai County Democrats, referring to Secretary of the Treasury Henry Paulson. “I think (Bush) has a hard sell on his hands right now.”

The proposal was labeled a bailout when Bush first pitched it Friday, and Sali said Tuesday’s speech did nothing to change that perception.

“There was nothing new in there,” Sali said.

Duane Rasmussen, president of the staunchly conservative Pachyderm Club in Kootenai County, said the gravity of the financial crisis outweighs his typical concerns about government interference.

“I’m concerned that we’re slouching toward socialism,” he said.

But, Rasmussen added, “I think everybody’s going to be affected by this, and if there were ever a time for the federal government to step in, it’s probably now.”

Meghann M. Cuniff can be reached at (509) 459-5534 or at meghannc@spokesman.com.

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