It was worse than that...
Insight often has reported on Clinton-era officials and Republican defectors who have tied Bush's national-security strategy in knots since the beginning of his presidency [see "Blinded Vigilance," Oct. 15, 2001; "Clinton Undead Haunting Pentagon," June 17, 2002; and "Democrats Subvert War Intelligence," Jan. 6-19]. Indeed, this magazine reported on Sept. 7, 2001, just four days before the terrorist attacks, that Clinton holdovers continued to run the U.S. intelligence community [see "Ground Down CIA Still in the Pit" at Insight online] without needed reforms to deal with post-Cold War threats such as international terrorism [see sidebar, p. 19]. Days after the carnage, even the president's most bellicose critics in Congress, including Sens. John Kerry (D-Mass.) and Carl Levin (D-Mich.), were on CNN saying as publicly as they could that they were reconsidering their long-held positions that limited the fight against the terrorist enemy and piously alluding to the need to repeal a post-Watergate executive order banning assassinations abroad.
At that point the president's own defense and security team was still taking shape. His top NSC special assistant for intelligence programs, Mary K. Sturtevant, had been on the job only eight weeks before the 9/11 attacks. For months, Sen. Levin personally had held up the confirmation hearings of Bush's appointees who were to design the U.S. antiterrorism strategy - Undersecretary of Defense for Policy Douglas J. Feith, Assistant Secretary of Defense for International Security Programs J.D. Crouch and Assistant Secretary of Defense for International Security Affairs Peter W. Rodman - refusing for apparently partisan purposes to allow them to take office until late July 2001. While Levin was holding up their appointments, the incoming Pentagon policy team had no legal or political authority to do their vital jobs - a fact that helps explain why it took eight months for the Bush administration to draw up a strategic operational plan to destroy al-Qaeda.
Making matters worse for the Pentagon leadership after 9/11 were the machinations of a network of senior Clinton political appointees who still held sensitive posts, including Peter F. Verga, Clinton's deputy undersecretary of defense for policy integration, which was a major intelligence post. Senior administration sources tell Insight that Verga made himself useful to the Rumsfeld team but beavered to curry favor at the top, in part by "sniping and playing bureaucratic games" to make life difficult for the incoming defense policy team. Even today the divisive Verga holds a senior homeland-security post at the Defense Department.
On a related note...Clarke's earlier comments about Bush increasing intelligence five-fold right after taking office got me to searching and according to the articles I have found, the budget blueprint to beef up intelligence was unveiled by Bush on Feb 28, 2001, which would fit in with Clarke's statement (the one time he DIDN'T lie). It was also amended to add even more money in June of 2001.
The following legislative link indicates that Congress did not act on it until Sep 14 2001.
Intelligence Authorization Act for Fiscal Year 2002
So...WHO did nothing prior to 9/11 to beef up intelligence? CONGRESS!