AFSCME LEGISLATIVE REPORT August 1, 2008

[Omaha Steve]

Below are the top stories of the week from Capitol Hill.

AFSCME LEGISLATIVE REPORT
August 1, 2008

In this issue:

* Senate Democrats Release Spending Bill
* State and Local Fiscal Relief and Medicaid Aid to States
* Senate Republicans Stall Tax Extenders Bill
* Congress Clears Higher Education Bill
* Housing Foreclosure Bill Becomes Law
* House Committee Votes to Reduce State and Local Bond Costs
* House Approves Equal Pay Legislation
* House Votes to Reauthorize E-Verify System
* FAA Collective Bargaining Legislation Introduced in the Senate


Senate Democrats Release Spending Bill

Senate Appropriations Committee Chairman Robert Byrd (D-WV) released a draft $24.1 billion fiscal year 2008 spending bill that he called a "stimulus supplemental." Consideration of the plan is expected in September. The draft focuses on annually-approved spending programs, but other funding and tax provisions may be added when it is debated. The draft does not include increased Medicaid funding to states, restoration of child support funding, and extended unemployment insurance benefits at this point, but it contains many significant funding increases to help states and localities continue delivering vital public services and modernize their facilities and infrastructure. Some of the key funding provisions of importance to AFSCME are: $400 million for a one-year extension of the Secure Rural Schools Act; $215 million for public housing authorities to fund urgent safety, security and energy related needs; $250 million for employment and training activities for dislocated workers; $893 million for transit agencies to meet capital and operating needs for growing demand; and $3.6 billion for highway investments. It also transfers cash into the highway fund to maintain solvency through FY 2009; $490 million for Byrne Justice Assistance Grants to support state and local police; $850 million for school repair and renovation; $200 million for Environmental Protection Agency's Clean Water State Revolving Fund to fund states with low-cost loans to reduce the cost of sewer projects; and $300 million for competitive grants to states and localities for innovative energy efficiency and renewable energy demonstration projects.
(Marc Granowitter- [e-mail])

State and Local Fiscal Relief and Medicaid Aid to States

The House's bipartisan Medicaid funding bill (H.R. 5268), which temporarily increases Medicaid funds to states by an estimated $13 billion, now has 130 cosponsors, 125 Democrats and five Republicans. Speaker Nancy Pelosi (D-CA) has said she wants a stimulus package of at least $50 billion that is expected to contain additional assistance for states to pay for the soaring cost of Medicaid. Recently, the National Association of Counties wrote a letter supporting H.R. 5268 which endorsed "efforts to enact this important legislation" and on July 22, AARP wrote to Speaker Pelosi and Minority Leader John Boehner (R-OH) in support of a second stimulus bill that includes enhanced Medicaid funding.
(Marc Granowitter- [e-mail])

Senate Republicans Stall Tax Extenders Bill

This week, the Senate voted 53-43 and 51-43, both along party lines, to reject moving to consider the $126 billion tax extenders bill. Further consideration may take place in September. The Senate's tax extenders bill consists of two separate parts. The first part is a fully paid for $57 billion amalgam of tax breaks for individuals and businesses with several renewal energy tax incentives. The second part lacks offsets and costs $68.9 billion mostly for a one-year patch to the Alternative Minimum Tax (AMT). While the AMT patch is considered must-pass legislation in order to avoid further AMT taxes on many middle-income taxpayers, the rest of the package is uncertain with mixed support.
(Marc Granowitter- [e-mail])

Congress Clears Higher Education Bill

On Thursday, Congress cleared legislation (H.R. 4137 – H.Rept. 110-803) overhauling federal support for higher education, sending the bill to President Bush for his expected signature. The House voted 380-49; the Senate voted 83-8. The bill increases the maximum Pell grant for low-income students from $5,800 to $8,000 a year by the 2014-2015 academic years. The legislation also creates a $10,000 student loan forgiveness program for graduates to work in high-need, often low-pay fields, including early childhood education, child welfare, nursing, teaching and other public services. The bill also tightens the regulation of private student loans, banning "sweetheart deals" between lenders and schools. And, it contains several provisions aimed at keeping college costs down.
(Fran Bernstein- [e-mail])

Housing Foreclosure Bill Becomes Law

The Senate voted 72-13 to approve the American Housing Rescue and Foreclosure Prevention Act (H.R. 3221), and President Bush signed it into law. It provides potential relief to at-risk homeowners through Federal Housing Administration (FHA)-insured refinancing, increases FHA loan limits, reforms other FHA policies and creates a new strong regulator for Freddie Mac and Fannie Mae. In addition, the bill grants $3.9 billion to states and localities to buy, manage, redevelop, and resell abandoned and foreclosed homes and residential properties. This neighborhood stabilization fund is designed to help stem the decline in property values and increase the stock of much needed affordable housing. It also establishes a new national Affordable Housing Trust Fund which is the first new federal housing production program in 18 years, and once fully operational, it is expected to generate $300 million annually to assist low-income households.
(Marc Granowitter- [e-mail])

House Committee Votes to Reduce State and Local Bond Costs

The House Financial Services Committee passed by voice vote the Municipal Bond Fairness Act (H.R. 6308) which would require credit-rating firms to evaluate the risk of municipal and corporate bonds using the same scale. They would have to base their ratings on the likelihood of repayment which is expected to raise the ratings of municipal bonds and thereby reduce the interest costs to states and localities.
(Marc Granowitter- [e-mail])

House Approves Equal Pay Legislation

By a vote of 247-178, the House approved the Paycheck Fairness Act (H.R. 1338) which would make it easier for women to seek legal remedies when they suspect they have been victims of wage discrimination. The bill makes it clear that men and women should be paid equally for equal work. It also removes caps on the compensation a victim can receive from a discrimination lawsuit. In addition, the legislation protects employees who share salary information from retaliation, and places the burden of proof on employers to prove that wage discrepancies between men and women are due to actual business reasons and not gender. A companion bill in the Senate (S. 766) has not advanced.
(Cynthia Bradley- [e-mail])

House Votes to Reauthorize E-Verify System

On Thursday, the House voted overwhelmingly to reauthorize E-Verify for five years, a controversial government-sponsored employee verification system which permits employers to electronically verify the work authorization status of employees by matching information such as names and Social Security numbers against information in the Social Security Administration (SSA) and Department of Homeland Security databases. The measure (H.R. 6633) passed by a vote of 407-2. The vote was a rejection of a stronger measure sponsored by Rep. Heath Shuler (D-NC) that would have made participation in E-Verify mandatory and would permanently authorize it. Critics of the program cite numerous incidents of employer misuse, hiring discrimination, and verification problems due to SSA database inaccuracies. The Senate is expected to consider its E-Verify legislation in September.
(Fran Bernstein- [e-mail])

FAA Collective Bargaining Legislation Introduced in the Senate

Sens. Frank Lautenberg (D-NJ) and James Inhofe (R-OK) have introduced the Federal Aviation Administration Employee Retention Act (H.R. 3416), legislation that will improve the dispute resolution process at the Federal Aviation Administration (FAA). AFSCME represented employees at the FAA headquarters that have been without a collective bargaining agreement since early 2001 when the Agency refused to sign an agreement that had been reached by the parties' negotiators and ratified by the employees. H.R. 3416 will address the problems by establishing an impasse procedure in such cases.
(Cynthia Bradley- [e-mail])



Click here to join the AFSCME e-Activist Network: http://www.unionvoice.org/afscme/join.html

AFSCME Department of Legislation
Phone: [phone] or 800/732-8120
Fax: [phone]
E-mail: [e-mail]
Website: http://www.afscme.org/
Produced by Union Labor