Week Ending March 13, 2009

Congress – The Week of March 9, 2009


Obama signs FY 2009 omnibus spending bill; Employee Free Choice Act reintroduced.

Obama Signs Fiscal Year 2009 Omnibus Spending Bill

This week, President Obama signed an "omnibus" spending bill for the current fiscal year, which funds domestic programs and non-military international programs through September.  At $410 billion, the measure provides growth of about eight percent over last year.  Since the beginning of this fiscal year last October, most health, education, employment, public safety and other domestic programs were flat funded at last year's level, despite inflation and greatly increased demands on public agencies.

 While the House passed the bill on February 25, the Senate had to overcome dozens of amendments and Republicans' opposition to earmarks in the bill.  This funding for specific local projects accounted for only two percent of the bill, and there are fewer earmarks in this funding bill than in previous years.  On March 10, the Senate finally voted to cut off debate, 62-35.  Three Democrats opposed the bill – Sens. Evan Bayh (D-IN), Russ Feingold (D-WI) and Claire McCaskill (D-MO).  Eight Republicans voted with the majority – Sens. Lamar Alexander (R-TN), Kit Bond (R-MO), Thad Cochran (R-MS), Lisa Murkowski (R-AK), Richard Shelby (R-AL), Olympia Snowe (R-ME), Arlen Specter (R-PA) and Roger Wicker (R-MS).  Included in the bill is a provision prohibiting the use of federal funds to study or hold a public-private competition known as competitive sourcing, the controversial practice by the Bush administration. 

Employee Free Choice Act Reintroduced

On March 10, Sen. Edward Kennedy (D-MA) and Rep. George Miller (D-CA) reintroduced the Employee Free Choice Act.  The Senate bill (S. 560) had 39 co-sponsors.  The House bill (H.R. 1409) has 222 co-sponsors.

The Employee Free Choice Act's three main provisions would strengthen penalties against employers who break the law with respect to union organizing, allow employees to request mediation and allow workers to form a union through majority sign-up.

AFSCME is committed to the fight to pass the Employee Free Choice Act in this Congress and is currently seeking additional co-sponsors.  Last Congress, the bill passed the House but failed to reach a vote on passage in the Senate.  An uphill battle is expected in the Senate. 

Congressional Hearings on Health Care Reform

This week, committees in the both House and Senate held hearings on health care reform.  Senate Finance Committee Chairman Max Baucus (D-MT) said that his committee will write its bill in June.  Committee Republicans attacked the proposed cuts to private Medicare Advantage plans that President Obama included in his fiscal year 2010 budget as a cost savings to pay for health care reform.  Office of Management and Budget Director Peter Orszag explained that Medicaid Advantage gives excessively high subsidies to private health insurers.  Ranking Member Charles Grassley (R-IA) spoke out against a public plan option in a reformed health care system, while Orszag stood by this option.

The AFSCME-supported public plan option was a flash point in the House Ways and Means Committee hearing as well.  Several Democrats on the panel, including Chairman Charles Rangel (D-NY) and Health Subcommittee Chairman Pete Stark (D-CA), argued that a public plan would have lower administrative costs than private insurance, would avoid giving insurers or providers too much power, and would provide a needed safety net.  Chairman Stark also stressed the importance of protecting and building on our employer-based health coverage system.

A further Senate hearing on Health Care Workforce Issues focused on the need to invest in many health care professions including primary care doctors, RNs, nurse's aides, physician assistants, nurse practitioners, and others.  This will be especially critical when millions of the uninsured gain coverage and will try to access care.  Several speakers advocated for a National Health Workforce Commission to oversee and coordinate workforce policy and planning.   

House Approves Wastewater Treatment Bill

On Thursday, the House approved legislation (H.R. 1262) that would provide $13.8 billion over five years for wastewater treatment grants and loans.  Specifically, the bill provides funding for the Clean Water State Revolving Fund (CWSRF) for the first time since 1994 when the last authorization expired.  The CWSRF enables states to assist local governments with their efforts to protect water quality and improve wastewater treatment facilities through low-interest loans.  AFSCME successfully blocked language in the bill that would have required local governments to privatize their water treatment activities as a condition of receiving federal funds.  

Economic Recovery Funds Continue to Flow to States and Local Governments

States and local governments are continuing to receive federal funding from the American Recovery and Reinvestment Act (ARRA), the economic stimulus bill signed into law by President Obama on February 17.

U.S. Secretary of Education Arne Duncan announced this week that $44 billion in stimulus funding for education will be available to states in the next 30 to 45 days. This first round of funding will help avert hundreds of thousands of estimated teacher and other staff layoffs in schools and school districts while making possible education improvements.  The Education Department guidelines authorize the release this month, without new applications, of half the Title I K-12 economic recovery funds, amounting to $5 billion, and half the funds for special education (IDEA), totaling $6 billion.  By the end of March, governors will be able to apply for 67 percent of the State Fiscal Stabilization Funds, totaling $32.5 billion.  These funds will be released to states within two weeks after approvable applications are received.  Additional details are available at www.ed.gov/recovery.

This week, the Department of Health and Human Services released $155 million in grant funds to support 126 community health centers across the country. These grants alone will help provide health services to 750,000 Americans and create 5,500 jobs.  For state-specific information on patients helped, jobs created and grants go to: http://www.hhs.gov/recovery/hrsa/napawards.html

The Department of Agriculture has started to distribute the first of $28 billion in ARRA funding.

Late last week, the Department of Transportation announced the availability of $8.4 billion from the ARRA for public transportation.  This will save and create jobs to rebuild roads, bridges and schools.  For state-specific information, click on the Department's recovery site at http://www.fhwa.dot.gov/economicrecovery/index.htm

The Department of Justice released $2 billion in Recovery Act 2009 funding allocations for state and local law enforcement assistance available through the Edward Byrne Justice Assistance Grant (JAG) Program.  The JAG Program allows states and local governments to support a broad range of activities to prevent and control crime and improve the criminal justice system.  Funds going to state and local government can be accessed at http://usdoj.gov/recovery.

The Commerce Department released guidelines for $150 million in competitive grants, of which $50 million is set aside for economic adjustment assistance, under the Economic Development Assistance Program. The guidelines can be accessed at: http://www.eda.gov/PDF/FY09%20ARRA%20FFO%20FINAL.pdf
 
The Labor Department issued initial guidance to states calling for more balance between the needs of workers and employers in its ARRA spending for the Workforce Investment Act and Wagner-Peyser programs.  It urges alignment with economic and community development strategies and coordination of education and training with jobs and industries that are important to local and regional economies.  The Department also has determined that several waivers will not apply to ARRA funds because they are contrary to congressional intent, including a waiver providing authority for full transfer of funds between the Adult and Dislocated Worker training programs.  In addition, services and training are to be maximized and administrative costs minimized.  The Department also released materials from the Corporation for National and Community Service (including AmeriCorps), which can be found at http://www.nationalservice.gov/about/recovery/index.asp  

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