AFSCME LEGISLATIVE REPORT April 20, 2007

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
April 20, 2007

In this issue:

* Filibuster in Senate Kills Prescription Drug Negotiations Bill – For Now
* D.C. Voting Rights Bill Approved in the House
* House Approves "Say on Pay" or "Shareholder Vote on Executive Compensation Act" (H.R. 1257)
* Senate Finance Democrats Want to Close Tax Gap and Bush Treasury Secretary Paulson Lacks Plan
* HUD Delays Implementation of its Public Housing Asset Management Plan for Public Housing
* Resolution of Differences Likely on Minimum Wage

Filibuster in Senate Kills Prescription Drug Negotiations Bill – For Now
On Wednesday, the Senate blocked consideration of the Medicare Prescription Drug Price Negotiation Act of 2007 (S. 3) on a vote of 55 to 42. This bill would have allowed the federal government to negotiate with pharmaceutical companies to reduce the price of prescription drugs used by seniors and others covered by Medicare. Drug companies were strongly opposed to the legislation and mounted an aggressive lobbying and media campaign aimed at preserving their profits.

While there were 55 votes in favor of passage, GOP leaders led a filibuster which required supporters of S. 3 to obtain 60 votes for passage. The vote was largely along party lines with all Democrats supporting the bill along with six Republicans: Sens. Norm Coleman (MN), Susan Collins (ME), Chuck Hagel (NE), Gordon Smith (OR), Arlen Specter (PA) and Olympia Snowe (ME). At the last minute, Democratic Majority Leader Harry Reid (NV) switched his vote from yes to no which gives him the right to bring the bill up for another vote later in the year.
(Barbara Coufal- [e-mail])

D.C. Voting Rights Bill Approved in the House
A bill that would give full voting power to the District of Columbia in the House of Representatives was approved in the House by a vote of 241-177 on April 19. The legislation (H.R. 1905) would also give Utah an additional, at-large, House seat until after the 2010 census at which time the state is expected to be awarded a seat based on its population growth. H.R. 1905 would permanently increase the number of House members from 435 to 437. The Senate is expected to consider the measure before the July Fourth recess. President Bush, however, has threatened to veto the measure if it is sent to him because he believes it is unconstitutional.
(Cynthia Bradley- [e-mail])

House Approves "Say on Pay" or "Shareholder Vote on Executive Compensation Act" (H.R. 1257)On April 20, the House voted 269-134 to approve the "Shareholder Vote on Executive Compensation Act" (H.R. 1257), also called "Say on Pay." This legislation would grant shareholders of publicly traded companies the opportunity to cast an advisory vote on their executives' compensation plans. AFSCME supports H.R. 1257 because it would help address fast growing executive compensation and the disconnect between pay and performance. While the House defeated several amendments designed to weaken the bill, the White House has criticized the bill, and companion legislation has not yet been introduced in the Senate.
(Marc Granowitter- [e-mail])

Senate Finance Democrats Want to Close Tax Gap & Bush Treasury Secretary Paulson Lacks Plan
At an April 18 Senate Finance Committee hearing entitled, "Examining the Administration's Plan for Reducing the Tax Gap: What are the Goals, Benchmarks, and Timetables," Chairman Max Baucus (D-MT) and other Democrats were disappointed that Treasury Secretary Henry M. Paulson, Jr. and IRS Commissioner Mark Everson would not provide a plan to close the $290 billion net tax gap. The tax gap represents the difference between taxes lawfully owed and those collected. By closing this gap, the government would increase federal revenues without increasing tax rates. In fact, since 2001, tax cheats have failed to pay $2 trillion in legally owed taxes, and every one percent increase in tax collected provides about $25 billion in revenues. Sen. Baucus set a goal of increasing the percentage of taxes collected from today's 83.7 percent to 90 percent by 2017 and urged Paulson to respond. Paulson said "I don't see the steps to get to 90 percent... I don't want to put forward something that will mislead the American people." Baucus told Paulson "we need a plan, I expect a plan... you have not heard the last of me on this."
(Marc Granowitter- [e-mail])

HUD Delays Implementation of its Public Housing Asset Management Plan for Public Housing
In response to numerous requests by congressional leaders and public housing advocates, including AFSCME, the Department of Housing and Urban Development (HUD) recently announced it will delay implementation of its Public Housing Authorities (PHAs) Asset Management Plan until October 15, 2007. In recent months, key House and Senate leaders have sent letters requesting a delay to HUD Secretary Alphonso Jackson, and the Senate Iraq War supplemental appropriations bill contains provisions to delay the plan until September 2007.

HUD's full announcement states that HUD is extending the year one stop-loss deadline, currently April 15, 2007, to October 15, 2007. This will delay the budget cut inflicted on PHAs as a result of HUD's new funding formula. To meet this stop-loss deadline, PHAs must be in compliance with asset management rules by September 30, 2007, including financial reporting. PHAs may choose to be reviewed prior to October 15. However, a PHA's stop-loss application will only be reviewed once. HUD will contact all PHAs applying prior to the April 15, 2007 deadline, to determine if they wish to be reviewed or resubmit by the later deadline. All other provisions, other than the requirement to be in compliance with financial reporting, remain in effect. HUD will soon issue a Public and Indian Housing (PIH) notice providing more information. The deadline for the year two stop-loss applications will be April 15, 2008.
(Marc Granowitter- [e-mail])

Resolution of Differences Likely on Minimum Wage
House Ways and Means Chairman Charles Rangel (D-NY) and Finance Committee Chairman Baucus are reported to be close to an agreement on a package of small business tax cuts that would include the minimum wage increase of $2.15 over 26 months, which was passed by both chambers earlier in the year. This tax-minimum wage package may be included as part of the supplemental conference report that would fund the Iraqi war.
(Marge Allen- [e-mail])

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