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(Alexandria, VA) – Amidst recent controversies over the rent for former President Bill Clinton’s taxpayer-funded New York office, the 300,000-member National Taxpayers Union (NTU) today renewed its long-held objections to fat federal subsidies for retired Chief Executives, and praised Congressman Ernest Istook’s (R-OK) announcement this week of his Appropriations Subcommittee’s intent to examine these perks.

“In typical Washington fashion, a program designed to help lift ex-Presidents out of poverty now helps to land them into the lap of luxury,” said NTU Vice President for Communications Pete Sepp. “Bill Clinton’s near-successful attempt at record-shattering office rent only adds to a long line of abuses, both of the public purse and the public trust.”

The Former Presidents Act of 1958 began as a modest effort designed to help Presidents make a “dignified transition” to private life. Prior to that time, no formal federal pension or other benefit program existed for retired Chief Executives.

Each former President is entitled to a yearly pension that is pegged to the salary of a Cabinet-level official, which is currently $161,200. The pension begins immediately upon leaving office, and is the same amount regardless of how old they are or how long they serve. Since the salary for Cabinet members often rises, the Presidential pension rises as well.

In addition, former Presidents receive expenses to maintain an office. While they are limited to an annual staff allowance of $96,000 per year, they may select an office anywhere in the United States, for which the General Services Administration must pay. In addition, the government provides funds for travel, office equipment, and postage, all of which are essentially used at the discretion of each former President. Only expenses for openly partisan political activities are taboo. Bill Clinton's recent selection of an $800,000-per-year office in Manhattan would have dwarfed that of his closest competitor, Ronald Reagan, at nearly $300,000. His subsequent decision to relocate to Harlem brings the total closer to Reagan’s still-pricey amount.

Former Presidents, including Bill Clinton and his predecessors, are entitled to lifetime Secret Service protection, although they may decline this coverage if they wish. Beginning with George W. Bush and any of his successors, “future former” Presidents will be limited to 10 years of Secret Service protection.

All told, the pension and office expense components for former Presidents, including Bill Clinton, will exceed $2.5 million in 2001. Exact Secret Service protection costs are not disclosed for security reasons, but could top $20 million this year for previous “first family” members.

In a letter sent this week to House Treasury, Postal and General Government Appropriations Subcommittee Chairman Istook, NTU identified a few of the many options for reform of this costly web of subsidies:

End the “Pension” Charade. If  taxpayers are to provide any Presidential pension, the benefit should be far less than the current $161,200. Cost of living adjustments, if any, should be capped at the actual dollar amount (not percentage amount) provided to Social Security recipients. Just as important, former Presidents should not be eligible for a retirement benefit until they’ve actually reached the Social Security retirement age.

Enact “Term Limits” on Former Presidents Too. Congress should establish a termination timetable for all current office allowances, or set a reasonable time limit on the duration of the perks. Even a 4-year cap would more than amply extend part of the already well-funded Presidential transition process. Minor and occasional expenses, such as answering mail from citizens or traveling as “goodwill ambassadors,” could be funded through existing budgets, including the White House Public Liaison and the State Department.

Put a Lid on Libraries. While there may be a legitimate national interest in preserving certain historical artifacts, taxpayers’ generosity has limits. Congress should order a full audit of the $43 million in taxpayer funds spent this year to operate Presidential libraries and collections, with an eye towards weeding out expenditures that are either unnecessary or are better funded with private donations.

“Former Presidents have no ‘official’ duties, so why should they be able to incur ‘official expenses’ on the taxpayer’s tab?” Sepp concluded. “Americans literally cannot afford to wait for another political scandal to prod Congress into fixing this fiscal scandal.”

NTU is a non-profit, non-partisan organization founded in 1969 to work for lower taxes, less wasteful spending, and accountable government at all levels. For more than 15 years the group has published accurate and detailed pension projections for Members of Congress and ex-Presidents. Further information on our efforts to limit Congressional and Presidential perks is available online at www.ntu.org.

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