AFSCME LEGISLATIVE REPORT February 15, 2008

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
February 15, 2008

In this issue:

* Action on Farm Bill Heats Up
* Rep. Pallone Introduces Bill to Increase Federal Share of Medicaid
* House Committee Questions Bush's Attempts to Privatize Medicare
* Impact of Business Activity Taxes Returns to Congress' Agenda
* Senate Blocks Cuts to State Case Management Services Under Medicaid

Action on Farm Bill Heats Up
Negotiations on the broad outlines of a Farm Bill have intensified in the last few weeks. The legislation has passed both the House and Senate and the differences between the two versions now have to be resolved in a “conference committee” consisting of key members of the House and Senate Agriculture Committees. Senate Conferees have been appointed, and the House is expected appoint its conferees soon.

A key difference between the two bills is the House merit staffing provision for the Food Stamp program that AFSCME backed successfully in the House bill. The provision is not in the Senate bill although Senate Agriculture Committee Chairman Tom Harkin (D-IA) is a strong opponent of privatization of the program.

We are now working to ensure that the House provision has the full support of a majority of the Senate conferees. It is opposed by the Administration, private technology companies and Indiana Governor Mitch Daniels who as turned his state’s program over to a private company consortium led by IBM.
(Nanine Meiklejohn- [e-mail])

Rep. Pallone Introduces Bill to Increase Federal Share of Medicaid
Rep. Frank Pallone (D-NJ) introduced legislation (H.R. 5260) that would provide roughly $13 billion for a temporary increase in the federal share of Medicaid payments from April 2008 through June 2009. Reps. John Dingell (D-MI), Peter King (R-NY) and Thomas Reynolds (R-NY) were original cosponsors of the bill. For many states struggling under the faltering economy, the enactment of this bill would mean a significant increase in federal funds: for New York, an increase of nearly $1.8 billion; for California, an increase of $1.4 billion, for Pennsylvania, an increase of $633 million, for Illinois an increase of $448 million. Sen. John Rockefeller (D-WV) has introduced similar legislation (S. 2586) in the Senate. AFSCME is working for the enactment of a boost in federal Medicaid payments to states and for flexible state and local fiscal relief.
(Linda Bennett- [e-mail])

House Committee Questions Bush’s Attempts to Privatize Medicare
At both the full House Ways and Means Committee and Health Subcommittee hearings on the Medicare portions of the fiscal year 2009 budget, Democratic members criticized the President’s budget provisions which would undermine Medicare by making substantial program cuts while protecting insurance company profits at the expense of moderate-income beneficiaries, hospitals and other providers. Health Subcommittee Chairman Rep. Pete Stark (D-CA) criticized the excessive corporate welfare provided to insurance companies as part of Medicare Advantage, which is a taxpayer subsidized private substitute for Medicare, and stated that the Administration’s support for these plans is an attempt to turn Medicare into a voucher program. AFSCME’s testimony for the record is available at http://www.afscme.org/legislation-politics/16098.cfm.
(Linda Bennett- [e-mail])

Impact of Business Activity Taxes Returns to Congress’ Agenda
The House Small Business Committee held a hearing on “Business Activity Taxes and their Impact on Small Businesses” to discuss options that balance the needs of entrepreneurs with the fiscal interests of states. Chairwoman Nydia Velazquez (D-NY) expressed concerns that Business Activity Taxes (BATs) are inhibiting interstate commerce and said, “When it comes to business activity taxes, the status quo is obviously not working.” Legislation to reduce and/or eliminate these taxes has been introduced and referred to the Judiciary Committee, chaired by Rep. John Conyers (D-MI). AFSCME is working in coalition with the National Governors Association and other government interest groups in opposition to this legislation because of the lost revenues that would result and the harmful impact on state taxing authority.
(Marc Granowitter- [e-mail])

Senate Blocks Cuts to State Case Management Services Under Medicaid
The Senate adopted by voice vote an amendment offered by Sens. Barbara Mikulski (D-MD), Norm Coleman (R-MN) and Amy Klobuchar (D-MN) which would delay implementation of a regulation issued by the Centers for Medicare and Medicaid Services (CMS) governing federal payments for case management services provided by state Medicaid programs. The amendment delayed the effect of the regulation until April 1, 2009 and would prevent the Administration from shifting $1.3 billion in costs of the services over five years to states. The amendment was offered to the Indian Health Care Improvement Act Amendments of 2008 (S. 1200); final passage on the bill, including the Medicaid amendment, is expected after the Presidents’ Day recess.
(Linda Bennett- [e-mail])

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AFSCME Department of Legislation
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Website: http://www.afscme.org/
Produced by Union Labor

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