Legislation & Politics

Week Ending July 31, 2009

The House will begin its summer recess next week. 
The Senate is scheduled to recess August 7.

Health Care Moves Forward in the House; No Progress in the Senate

On Thursday, the House Energy and Commerce Committee resumed the debate on its health reform bill, the America's Affordable Health Choices Act (H.R. 3200), after nearly two weeks of negotiations between conservative "Blue Dog" Democrats on the committee and the Chair, Rep. Henry A. Waxman (D-CA).  The Blue Dogs, who held enough votes to block H.R. 3200 from being approved by the committee, succeeded in forcing changes to the bill.  The changes somewhat weaken the public health insurance option, shift 7% of the cost of expanding Medicaid to the states after 2016, increase the number of small businesses exempted from the "pay or play" requirements, and reduce assistance to low-and middle-income earners purchasing coverage on their own.

We expect the Energy and Commerce Committee to complete the debate on this bill before the weekend is out.  Then, the three House committees with jurisdiction over health reform will negotiate the terms of a final bill that will be voted on by the full House after the August recess.  AFSCME will be working during the month of August to make the final bill in the House as strong as possible and to reverse some of the changes forced by the Blue Dogs.

In the Senate, negotiations over a health care bill will not conclude before the August recess.  However, it is clear that the bill taking shape in these negotiations does not meet many of AFSCME's goals for achieving affordable coverage and is a much weaker bill than the one approved by the Senate Health, Education, Labor and Pensions Committee two weeks ago.  It appears certain that the Finance Committee bill will tax health plans, but not workers, on their health coverage.  Nonetheless, such a tax would raise the cost of coverage to employers and move them to demand cuts in benefits or more cost sharing by workers.  The Finance Committee bill does not include a public health insurance option, needed to inject competition into the market and drive down costs.  The bill also does not include a requirement on employers to provide coverage to their workers or make a payment into a fund that would subsidize coverage for low-and middle-income earners.  

Medical Debt Contributes to 62% of All Bankruptcies - Even for the Insured

Before the economic downturn, 62% of all bankruptcies in the United States in 2007 were driven by medical problems, either from suffocating medical debt or income losses due to illness, according to national research published in the August issue of the American Journal of Medicine.  Three-quarters of the families that were forced into bankruptcy because of medical problems were insured.  Many of the families with coverage found themselves under-insured and responsible for thousands of dollars in out-of-pocket costs. This study highlights the urgent fiscal need for health care reform to help working families who often have coverage but find it inadequate just when then they need it most.  

Senate Panel Approves Supreme Court Nominee Sotomayor

By a vote of 13 to 6, the Senate Judiciary Committee approved the nomination of Judge Sonia Sotomayor to the U.S. Supreme Court on July 28.  Senator Lindsey Graham of South Carolina was the only Republican on the committee who voted yes on the nomination, explaining that he understood why President Obama nominated Sotomayor, although he himself would not have.

The vote in the full Senate is expected to be largely along party lines since 20 Republican senators have already announced that they plan to vote against Sotomayor, who is the first Latina nominated to the high court.  Sotomayor is expected to be confirmed in time to join the Court this year.  

AFSCME Testifies at Senate Hearing and Urges Better Protections for Average Investors in Financial Markets

AFSCME testified at a Senate subcommittee hearing entitled, "Protecting Shareholders and Enhancing Public Confidence by Improving Corporate Governance", and urged better protections for average investors, stronger federal oversight, and increased corporate accountability. AFSCME's Director of Corporate Governance, Richard Ferlauto, recommended that Congress work to strengthen the regulation of markets, increase accountability of corporate boards and executives, improve financial transparency, and protect local rights of defrauded shareowners.  AFSCME supports expanding investor rights and authorizing the Securities and Exchange Commission (SEC) to strengthen its advocacy role on behalf of all Americans' financial security.  AFSCME's testimony and more information about the hearing is available at the Senate Subcommittee's website: http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=c754606c-0b95-4139-a38a-63e63b4b3fa9.  

House Subcommittee Approves "Say On Pay" and Limits on Risky Incentive-Based CEO Pay

On July 28, the House Financial Services Committee voted 40-28 to approve legislation to reform executive compensation and end perverse compensation practices that incentivize corporate executives to take excessive risks, which are often costly to their corporations, shareholders, employees, and to  American taxpayers.   The "Corporate and Financial Institution Compensation Fairness Act" (H.R. 3269) would grant shareholders a "say on pay" for top executives and ensure that they have a nonbinding, advisory vote on their firm's pay practices.  It also would require federal regulators to proscribe inappropriate or risky compensation practices as part of solvency regulation of all financial institutions.  The bill mandates that financial firms disclose incentive-based compensation packages.  This is the first piece of a broad package of regulatory reforms that the committee is developing to address the causes of the recent financial crisis.  The full House is expected to vote on H.R. 3269 as soon as July 31.  

Senate Committee Approves Labor, Health, Education Funding Bill

The Senate Appropriations Committee approved its fiscal year 2010 spending bill by a vote of 29-1 for programs funded through the Departments of Labor, Health and Human Services, and Education.  The bill is not expected to be voted on by the full Senate until Congress returns from its August recess.
 
Overall, the bill provides $163.1 billion in annually-approved spending for the three departments plus some independent agencies.  This is $2.4 billion more than the President requested, $300 million less than the House approved, and $7 billion more than enacted last year.
 
In particular, the committee approved $2.97 billion for state grants for job training, $562 million for the Occupational Safety and Health Administration (OSHA), a $46 million increase in nurse training funds, $5.2 million for a new program to train nursing home aides and home health care aides, $354 million for pandemic flu preparation,  and a $122 million increase for Head Start to support cost of living increases for staff.  Like the House bill, some key programs are flat funded, including the Child Care and Development Block Grant (CCDBG), Title I education funding, and special education.  

Senate Committee Approves Housing-Transportation Fiscal Year 2010 Spending Bill

On July 30, the Senate Appropriations Committee approved its fiscal year 2010 spending bill which funds public housing, community development, and transportation programs.  The bill includes $3.999 billion for Community Development Block Grants (CDBG).

For transportation programs, the bill provides $42.5 billion for the Federal Highway Administration; nearly $11.1 billion for public transportation programs, including $150 million for the capital and maintenance needs of Washington D.C.'s Metro system; $1.1 billion for grants to support larger transportation projects; and $1.2 billion for high-speed rail grants.  Unlike the House bill, the Senate bill does not include money for a national infrastructure bank.  

Committee Approves Re-opening Compensation Fund for 9/11 Rescuers

The House Judiciary Committee voted 22-9 to approve The James Zadroga Act (H.R. 847) that would reopen a compensation fund through 2031 for victims of the Sept. 11 attacks and authorize funding for their medical treatment.  This fund would aid the many clean-up and rescue workers and area residents who developed serious health problems from exposure to Ground Zero toxins after the original fund closed in late 2003.

The bill also would limit liability for the city of New York, property owners and the contractors involved in the Ground Zero clean-up efforts.  The bill limits attorney fees to 10 percent of the award, except for circumstances in which attorneys provided a "substantial amount of legal work" for the claimant.

This is the first time a congressional committee has voted on this bill. It could receive a vote on the House floor as early as this fall.  

Congress Approves Bill Extending Three Federal Programs

By wide margins, both the House and Senate this week approved H.R. 3357, extending three important federal programs whose funding would have otherwise lapsed during the August recess.  The bill extends funding for the federal Highway Trust Fund, the Unemployment Trust Fund and the Federal Housing Administration's mortgage assistance programs. 

Federal Domestic Partner Benefit Bill Advances

This week, a House subcommittee approved the Domestic Partnership Benefits and Obligations Act of 2009 (H.R. 2517). The bill provides the same benefits a federal employee spouse receives to the domestic partner of a federal employee.  The Senate version (S. 1102) remains in committee.  AFSCME fully supports the legislation. 

AFSCME Supports FLRA Nominees

President Obama nominated Ernie DuBester to be a member of and Julia Clark to be General Counsel for the Federal Labor Relations Authority (FLRA). Both nominees are extremely qualified and excelled in their confirmation hearing this week.  AFSCME submitted a letter of support and urged the Senate to swiftly confirm both nominees.  

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