Always Nice to be Right

As I guessed in a previous post (and see  this), Sen. Lincoln and the Administration are looking at Section 32 funds for her special disaster program.  She provided this list  of past uses of the authority from Farm Policy.

I'm surprised by the number listed.  When I joined ASCS Sec. 32 funds had been used to buy up surpluses of potatoes, most notably, and use them for cattle feed and/or school lunches.  My impression was that it was method of dealing with surpluses of agricultural products which weren't storable, unlike the "basic crops", including wheat, corn and other feed grains, rice and cotton, and milk.  (Milk isn't storable, but cheese and butter are.) Apparently, though I've not bothered to follow up, there have been some changes over the years, particularly recently, which has expanded the use of the authority.

CCC has a history dating back to the Wilson administration, which I think but don't know gets the credit for using the corporation as a method of doing government business during WWI.  Subsequently Hoover came up with the Reconstruction Finance Corporation to handle depression-era projects, and the New Deal continued the RFC and created other corporations, including the CCC.

The corporation has some advantages over a regular agency: it can be much more flexible because you give it a charter and then leave the power up to its board of directors (CCC's board is basically agency heads plus secretary types).  You can give it an initial fund of money, then allow it to borrow from the Treasury.  That means Congress only gets to appropriate when the corporation runs out of borrowing authority.  And, I again think but am not sure, such repayments to the Treasury don't show up in the budget.

In addition to its borrowing authority, CCC also gets  a yearly cut of some customs money, under Sec. 32, which is probably also off budget.  And that's the money proposed to be used for Lincoln's disaster program.  (Personally, I think it's a stupid idea and hope the administration slow walks it until it's apparent that Lincoln is a lost cause.  Then they can give her a post somewhere.)

As an aside, back in the day ASCS used to tap CCC money for administrative expenses tied to carrying out CCC programs.  Over time we got too inventive  in using it for IT systems, so the Appropriations Committees cracked down.