Legislation & Politics

Week Ending June 27, 2008

Congress – The Week of June 23, 2008


AFSCME-supported provisions in emergency supplemental funding bill pass Senate and go to President. House overwhelmingly approves a bipartisan Medicare benefits bill but GOP Senators stop it in Senate.

Congress will be out next week for its July 4th recess. The next weekly report will be issued Friday, July 11.

AFSCME-Supported Provisions in Emergency Supplemental Funding Bill Pass Senate and Go to President

On the heels of last week's House vote of 416-12, the Senate voted 92 to 6 for a funding package for the wars in Iraq and Afghanistan that includes AFSCME-supported domestic provisions. President Bush is expected to sign it. These provisions include urgently needed flood relief, an expanded GI bill for veterans, an extension of unemployment insurance (UI) benefits for 13 additional weeks and $110 million to close a current funding shortfall in the UI program. The bill stops significant cuts in federal funding to states which would have occurred if several Administration-proposed Medicaid regulations were to take full effect. The regulations would have hurt states and localities struggling with budget shortfalls. AFSCME continues to press for congressional action to address the states' budget crisis through an increase in federal Medicaid payments to states and other state and local aid.

Senate Republicans Block Bipartisan House Medicare Benefits Bill

By an overwhelming vote of 355 to 59, the House ignored a threatened Bush veto and passed a Medicare bill (H.R. 6331) on Tuesday, but on Thursday Senate Republicans blocked passage of the bill by refusing to cut off debate. As a result, doctors will face a 10% cut in Medicare payments next week. The bill would have averted the cut in physicians' reimbursements, improved Medicare's guaranteed benefit package, and helped seniors with limited incomes pay their medical and prescription drug bills. The President threatened to veto the bill, and Republican Senators vigorously opposed the bill because it would hold private Medicare Advantage (MA) plans, which rely on taxpayer dollars for their profits, more accountable. Insurance company versions of Medicare cost more per person than the traditional program. A recent Government Accountability Office (GAO) report found that the MA plans fail to deliver promised benefits and can skim off more public funds for profits. AFSCME will continue to press for preserving and enhancing the guaranteed Medicare benefit package and to limit inefficient and wasteful payments to private MA plans.

Spending Bills Halted in House

The House Appropriations Committee abruptly stopped consideration of two big domestic spending bills in the midst of a fierce partisan dispute. Republican members blocked action on two bills funding the Departments of Labor, Health and Human Services (HHS) and Education, and Agriculture. Instead, they pressed for consideration of the bill funding the Interior Department, saying it would lead to lower fuel prices. Appropriations Chairman David Obey (D-WI) called it a "political stunt," and he threatened to halt the appropriations process as he abruptly adjourned the session, adding "I'll see them in September," the end of the current fiscal year when Congress would have to approve a continuing resolution to keep the government running if lawmakers and the President cannot agree on annual spending bills. President Bush has threatened to veto any spending bills over his recommended funding level. The Labor, HHS and Education bill already exceeds President Bush's request by some $8 billion, and several programs important to AFSCME members would receive modest funding boosts under the bill.

The Senate Appropriations Committee approved its Labor, HHS and Education spending bill on June 26, by a vote of 26-3. It also exceeds President Bush's budget request.

House Committee Approves Homeland Security Spending

On June 24th, a House Appropriations Committee approved Fiscal Year 2009 spending for programs in the Department of Homeland Security. Most of the first responder programs were level funded or increased. State Homeland Security grants ($950 million) and Transit Security Grants ($400 million) were funded at the same level as FY 2008. The bill also provides $1.9 billion for Disaster Relief. 

House Appropriations Committee Approves Justice Funding

The House Appropriations Committee approved spending for FY 2009 Justice Department programs. Overall, the bill provides $1.87 billion for Office of Justice Programs ($177 million above 2008), including the Byrne Memorial Justice Assistance Grant (JAG), State Criminal Alien Assistance Program, and other key services. This rejects President Bush's budget proposal to eliminate many state and local grant programs. Specifically, the bill funds $550 million for the JAG program ($380 million more than FY 2008); $627 million for the COPS program ($40 million more than FY 2008); and $431 million for the Juvenile Justice and Delinquency Prevention program and the Justice Accountability Block Grant program ($47.5 million more than FY 2008). No floor vote has been scheduled.

House Panel Approves 3.9% Pay Increase For Federal Civilian Workers

The FY 2009 Financial Services and General Government spending bill received full committee approval on June 25. The bill includes a 3.9% pay increase for federal civilian employees, a one-year suspension of new privatization studies in all federal agencies, and eliminates funding for private tax collection. A floor vote is not expected until July.

Senate Republicans Stall Housing Mortgage Bill and Threaten $4 Billion For States and Localities in Neighborhood Stabilization Fund

The Senate's consideration of a housing bill (H.R. 3221) designed to address the subprime mortgage and foreclosure crises was delayed until after July 4th by Sen. John Ensign's (R-NV) insistence on adding an $8.2 billion package of renewable-energy expiring tax breaks that lacked revenue offsets. As the bill nears completion, the Bush Administration strongly opposes the Senate's $4 billion neighborhood stabilization fund, which would give grants, via the Community Development Block Grant program, to states and localities to buy, rehabilitate, and rent foreclosed properties. The House companion bill, sponsored by Rep. Barney Frank (D-MA), creates a $15 billion fund with a combination of grants and loans. AFSCME strongly supports the neighborhood stabilization fund.

House Subcommittee Reviews the Business Activity Tax Simplification Act

A House Subcommittee convened a June 25th hearing to discuss H.R. 5267, the long-stalled Business Activity Tax Simplification Act (BATSA), which would preempt state and local taxing authority, reduce annual state tax revenues by $6 billion, and enable businesses to reorganize their operations to avoid additional taxes. The National Governors Association (NGA), the Federation of Tax Administrators (FTA), and the Multi State Tax Commission (MSTC), all spoke against BATSA. AFSCME also strongly opposes H.R. 5267. The bill currently has 28 bipartisan co-sponsors. In the Senate, Sen. Charles Schumer (D-NY) introduced related legislation (S. 1726), which has attracted only one co-sponsor.

We do not expect a full House or Senate vote on this legislation in 2008.

House Committee Passes Pre-K Bill

On June 26th, a House committee passed H.R. 3289, which establishes a federal-state partnership for pre-kindergarten programs. Under the bill, states would receive federal funding that they could use for a variety of program improvements, including increasing the number of early childhood educators with bachelor's degrees, reducing student-teacher ratios, implementing research-based curricula, and providing vital comprehensive services such as health screenings and nutritional assistance.

Republicans expressed strong concerns that the bill would divert funding away from Head Start, which currently can not serve all eligible children. An amendment offered by Rep. Buck McKeon (R-CA) was rejected 18-25 that would have required states to use their grant money for Head Start programs until those programs were fully funded.

The Senate has no companion bill, and we do not expect this bill will become law this year.

House Approves Civil Rights Legislation for the Disabled

On June 25th, the House approved major civil rights legislation on behalf of disabled Americans. The legislation (H.R. 3195) clarifies the definition of "disabled" as any person who has or is perceived to have mental or physical impairments that restrict major functions, and that anyone who meets this definition is entitled to protections under the Americans with Disabilities Act (ADA)."  H.R. 3195 is a response to U.S. Supreme Court decisions that narrowly defined provisions of the ADA and have resulted in the weakening of protections against discrimination for people with disabilities. The measure was approved by a vote of 402-15.

House and Senate Vote to Extend FAA Reauthorization

This week, the Senate cleared a three-month Federal Aviation Administration (FAA) extension by voice vote, just two days after the House approved the measure 422-0. The bill (H.R. 6327) will extend the reauthorization through Sept. 30. The current reauthorization expires on June 30. 

House Budget Committee Hearing Evaluates Long-Term Federal Finances and "Securing America's Future Economy (SAFE) Commission Act"

A House Budget Committee hearing considered America's long term finances, the utility of a "budget commission", and other potentially significant changes to the federal budget process. The hearing focused on H.R. 3654, which would create a commission of Congress members and Administration officials designed to develop fast track legislation to manage the federal government's current and future debt, reconsider the tax code, and address the rising costs of Social Security, Medicare and Medicaid. The House bill has 95 bipartisan co-sponsors.

AFSCME opposes both H.R. 3654 and its companion in the Senate (S. 2063). We have expressed our opposition to legislative proposals creating an "entitlement commission," or similar entities designed to fast-track wide-ranging legislation on federal taxes and entitlements due to the potentially damaging impact such proposals could have on Social Security, Medicare, Medicaid, and other key federal safety net programs (AFSCME's letter is available at: http://www.afscme.org/legislation-politics/18359.cfm?print=1.

House Financial Services Committee Votes to Exempt Small Public Housing Authorities from HUD's Asset Management Rules

The House Financial Services Committee approved, by voice vote, H.R. 6216, which would exempt public housing agencies (PHAs) with fewer than 500 units from HUD's public housing asset management regulations, which require PHAs to manage and budget each housing development separately rather than on a combined basis. H.R. 6216's exemption would reduce unnecessary burdensome regulations on smaller PHAs. Many observers think HUD designed these regulations to promote the eventual privatization of public housing. AFSCME supports the legislation and the Bush Administration strongly opposes it. 

House Seeks to Increase Public Transportation Use

By a vote of 322-98, the House approved legislation (H.R. 6052) to increase public transportation use across the United States. This bill authorizes $1.7 billion for transit agencies to reduce fares and expand transit services. These funds will allow transit agencies to provide incentives for commuters to choose transit options, thereby reducing transportation-related energy consumption and reliance on foreign oil, as well as decreasing greenhouse gas emissions. The bill is 100% federally funded, will be distributed under current urban and rural transit programs, and will be available for two years. 

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