Legislation & Politics

Week Ending July 24, 2009

Senate Unlikely to Debate Health Care Reform Before August Recess; Hope Still Alive for Progress in the House

While one Senate committee has completed debate on its sections of health care reform legislation, the Senate Finance Committee remains deadlocked on key features, including how the legislation will be funded.  While the Finance Committee is no longer actively pursuing a proposal to tax workers' health care benefits, it is looking at a tax on insurance companies and health plans on coverage that exceeds a premium cost of $25,000 beginning in 2013.  Such a tax would be passed onto employers and drive them to reduce benefit levels below this cost.

In the House, the conservative group of Blue Dog Democrats continues to press for conflicting changes in the House health care bill, "America's Affordable Health Choices Act of 2009" (H.R. 3200) which has delayed the Energy and Commerce Committee's consideration of the bill.  This would be the last of the three House committees to consider the bill. While demanding cuts in federal spending for health care reform, Blue Dogs are also demanding increases in payments to rural health care providers. To reconcile these demands, it would be necessary to make unwise spending cuts elsewhere in the bill, such as cutting Medicaid payments to the states, reducing subsidies to small businesses, and reducing subsidies to low- and moderate-income families who do not get coverage through their jobs and must purchase insurance on their own. 

President Obama and House Speaker Nancy Pelosi (D-CA) continue to press for a resolution that will allow the House to vote on the bill before the August recess.  On Sunday AFSCME is launching a new television ad featuring AFSCME nurses. The ad calls on lawmakers to support the President and pass H.R. 3200. To view the ad, go to http://www.youtube.com/afscmepa 

AFSCME Activists and Leaders:
We Need Your Help!

Call Your Representative at 202-224-3121

Urge your representative to support

"America's Affordable Health Choices Act of 2009" (H.R. 3200).

Tell him/her that we cannot wait to fix our health care system.

National Conference of State Legislatures Adopts Strong Support for Federal Health Care Reform Legislation

At its annual meeting held in Philadelphia this week, the National Conference of State Legislatures (NCSL), after strong lobbying by AFSCME leaders, adopted a health care reform policy that calls on Congress to pass health care reform legislation that includes the choice of a public health insurance option.  The policy statement also supports reform that includes a federally-funded expansion of Medicaid, shared responsibility to pay for expanded access to health insurance coverage, and several additional provisions that would control costs, expand coverage, and improve health care quality.  Seventy-five percent of the states voted in favor of the resolution.
 
NCSL's endorsement of strong federal health care reform this year follows a letter from 833 state legislators from all 50 states which was sent to President Obama and congressional leadership last month.  They also expressed support for health reform that includes a public health insurance option, affordability, shared responsibility among government, employers and individuals, and improved quality.     

Governors Press for Medicaid Expansion with Full Federal Funding

The National Governors Association has sent a letter to the Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking member Charles Grassley (R-IA) urging the Senate Finance Committee to adopt the approach taken in the House health care reform bill (H.R. 3200) to provide permanent 100% federal funding for any Medicaid expansions.  AFSCME supports expanding eligibility of Medicaid to reduce the number of uninsured individuals and families but it is imperative that costs associated with any expansion in Medicaid eligibility be supported 100% by the federal government.  Such an increase in federal support should not shift, over time, the costs of expanded eligibility onto states and local governments.

Nose-diving State Revenues Worsening Already Strained Budgets; Federal State Fiscal Relief Helps

States saw a nearly 12% drop in tax revenues collected in early 2009, the largest decline in 46 years, according to a recent report released by the Rockefeller Institute of Government. The loss of revenues and the persistence of the current recession - now 19 months long and still going - will lead to deeper and expanding state budget shortfalls.  The National Conference of State Legislatures recently reported that states budgets are strained as lawmakers have struggled to close at least $268.6 billion in gaps since the recession started in December 2007.  The silver-lining in state finances in FY 2009 and FY 2010 was the AFSCME supported federal funds available through the American Recovery and Reinvestment Act (ARRA), signed into law by President Barack Obama in February.  Before the act was approved, state lawmakers were considering even deeper cuts to public programs and jobs.  For FY 2010, the ARRA federal funds have staved off some of the cuts and helped to ease budget gaps.  The bulk of ARRA state fiscal relief funds ($100 billion) will be disbursed by the end of this year; states will have about half that amount next year.  AFSCME is pressing for Congress to provide additional fiscal relief for states. 

Key Republican Announced Support for Sotomayor Nomination

On July 22, Senator Lindsey Graham from South Carolina became the first Republican on the Senate Judiciary Committee to announce that he will support Sonia Sotomayor's nomination to the Supreme Court.  Four other Republicans who are not on the Committee have announced that they will vote for Sotomayor.  Altogether, 10 Republicans have announced that they will vote against Sotomayor. 

The Judiciary Committee is scheduled to vote on the nomination on July 28.  

House Approves Housing-Transportation Fiscal Year 2010 Spending Bill

On July 23, the House voted 256-168 to approve the fiscal year 2010 spending bill (H.R. 3288) which funds public housing, community development, and transportation programs.  The bill appropriates $4.8 billion for the Public Housing Operating Fund, which is $345 million or 8% more than current funding.  The Appropriations Committee notes that The Department of Housing and Urban Development (HUD) and local public housing authorities determined that $5.3 billion would be needed in FY 2010.  It also provides $2.5 billion for the Public Housing Capital Fund and $250 million for severely distressed public housing (HOPE VI).  It appropriates $4.2 billion for Community Development Block Grants (CDBG) and directs HUD to use the same formula and methodology it used in FY 2009.  The House rejected several Republican amendments to cut spending, including one to impose a 5% across-the-board cut and one to cut the bill by $13.5 billion.  

The bill also included funding proposals for programs that are currently being considered in major surface transportation legislation by the House Transportation and Infrastructure Committee.  The bill provides $41.1 billion for the Federal Highway Administration which is a one percent increase from 2009; nearly $10.5 billion for public transportation programs, including $150 million for the capital and maintenance needs of Washington D.C.'s Metro system; $1.48 billion, $20.1 million above last year for the activities of the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration; and $16 billion for aviation. 

The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development is expected to consider this bill on July 29. 

Congress Moves Forward on Extension of Surface Transportation Bill

Several weeks ago, President Obama asked Congress to delay a massive surface transportation bill that would reauthorize the law that provides funding and policy for the nation's highway, transit and rail programs.  Instead, the President called for an 18-month extension of the current law.  The three Senate committees with jurisdiction covering transit programs, highways, and safety provisions have approved the 18-month extension.

The House, however, is not currently considering an extension but  is moving forward with a six year, $500 billion bill that would provide increases in transportation programs while making other major changes in transit, highway and transportation safety policy. 

House Committee Overhauls Student Loans, Creates New Child Care and Community College Programs

This week, the House Education and Labor Committee approved The Student Aid and Fiscal Responsibility Act (SAFRA) of 2009 (H.R. 3221) by a vote of 30-17 with two Republicans, Reps. Tom Petri (WI)) and Todd Platts (PA) supporting the bill. SAFRA includes student loan reform, creates a new early childhood program (Early Learning Challenge Grants), and a new program of assistance to community colleges.  The Early Childhood Program is still funded at $1 billion each year but is now authorized for 8 years instead of 10.

The House vote is expected before August recess but has not been scheduled.

Bill Would Require Background Checks for Child Care Providers

This week, Rep. Gwen Moore (D-WI) introduced H.R. 3287, which would require a criminal background check every five years for a child care provider receiving funds from the Child Care and Development Block Grant (CCDBG). The bill would cap total charges for all required background checks at $36, require that checks are completed within 10 working days following the request, and allow a provider to appeal incorrect results within 30 days.  Providers would be deemed ineligible if their records reveal felony convictions for child abuse or neglect, spousal abuse, a crime against children (including pornography), a violent crime (physical assault or battery, rape, sexual assault, or homicide), or a drug-related offense within five years.  

House Passes Pay Raise for Federal Employees

Last week, the House passed the FY 2010 Financial Services and General Government spending bill with a two percent pay increase for federal employees effective next January. The Senate version, which has to be voted on, includes a 2.9 percent increase. Both are less than the 3.4 percent pay increase Senate and House committees approved for members of the military as part of the FY 2010 National Defense Authorization Act.  AFSCME supports pay parity between military and civilian employees and will continue to push an equal pay increase for federal employees. 

Final Minimum Wage Increase Goes Into Effect

On July 24, the federal minimum wage will increase to $7.25 per hour, an increase of 70 cents. This increase is the third and final step increase resulting from 2007 legislation which amended the Fair Labor Standards Act to raise the minimum wage from $5.15 per hour to $7.25 per hour over two years.

Puerto Rico Status Bill Moves in the House

Legislation that could ultimately change the U.S. relationship with Puerto Rico was approved in the House Natural Resources Committee on July 22 by a vote of 30-8.  The legislation (H.R. 2499) would create a process for Puerto Ricans to choose statehood, independence or to maintain their current status as a U.S. commonwealth.  Under the current commonwealth status, Puerto Ricans are U.S. citizens, but they do not pay federal income taxes, they cannot vote in presidential elections, and they do not have voting representation in the Congress.  Past efforts to change Puerto Rico's status have resulted in an almost even vote between those wanting statehood and those wanting to maintain the status quo.

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