Below are the top stories of the week from Capitol Hill.
AFSCME LEGISLATIVE REPORT
February 13, 2009
In this issue:
* Economic Recovery Package Moves Toward Enactment
* FAA Reauthorization Bill Introduced in the House
Economic Recovery Package Moves Toward Enactment
On Tuesday, the Senate passed its version of the American Recovery and Reinvestment Act of 2009 (H.R. 1) by a vote of 61 to 37 with all Democratic Senators supporting the bill, along with Senators Susan Collins (R-ME), Olympia Snowe (R-ME) and Arlen Specter (R-PA). The Senate and House moved quickly to resolve the differences in the two versions of the bill and a conference committee issued a report. On Friday, the House passed the conference agreement by a vote of 246 to 183, with all but 7 Democratic members voting for the package. All Republicans and the following Democratic Representatives voted against President Obama’s economic package: Representatives Bobby Bright (D-AL), Pete DeFazio (D-OR), Parker Griffith (D-AL), Walt Minnick (D-ID), Collin Peterson (D-MN), Heath Shuler (D-NC), and Gene Taylor (D-MS). Representative Dan Lipinski (D-IL) voted present. The Senate is expected to vote on the agreement on Friday. It will then go to President Obama for his signature. The $789 billion conference agreement will create or save 3.5 million jobs, help ailing states and local governments avoid cuts in jobs and services and begin to transform our economy.
One Last Time –We Need Your Help!
We're almost at the finish line! The House has passed the bill. Please reach out to both of your Senators today and urge them to support the American Recovery and Reinvestment Act by using our toll-free number: 1-888-460-0813. Our message is simple. Vote yes.
The conference agreement contains more than $225 billion in state and local aid. This includes significant funding for many important AFSCME priorities including:
Health Care
* $87 billion in new federal dollars for Medicaid (FMAP), our number one lobbying priority. The increase in FMAP covers 27 months from last October to the end of 2010. All states will get a 6.2% increase in what the federal government pays towards their state Medicaid programs. In addition, states with higher unemployment rates will get additional federal money. States are required to retain their current Medicaid eligibility standards to receive the FMAP increase, but we believe we have defeated efforts to have more stringent maintenance of effort requirements. Counties that contribute to the state Medicaid share will receive a portion of this money as well.
* $460 million for safety net hospitals (DSH) in increased annual DSH allotments.
* Extends the moratoria on the harmful Bush Administration Medicaid regulations which halts $105 million in cuts to states which would have started in April.
* Requires the federal government to make prompt Medicaid payments to nursing homes and hospitals, increasing payments to these facilities by $680 million.
Education
* $53.6 billion through the State Fiscal Stabilization Fund in the following three pieces: 1) $39.5 billion to local school districts using existing funding formulas for preventing cutbacks, preventing layoffs, school modernization or other purposes; 2) $5 billion to states as bonus grants for meeting key performance measures; and 3) $8.8 billion in flexible funds to states for high priority needs including but not limited to education.
* $13 billion for Title I.
* $12.2 billion for IDEA (special education).
* $2.1 billion for Head Start (including $1.1 for Early Head Start).
* $2 billion for the Child Care and Development Block Grant (CCDBG).
Public Employee Retirees
One of the President's centerpieces of the recovery plan is the "Make Work Pay" tax credit of $400 for individuals and $800 per couple filing jointly. A $250 increase to Social Security benefits for retirees is in the final package. We worked closely with our congressional allies to ensure that public employee retirees not covered by Social Security can also access this benefit. Non-covered retirees are now eligible to receive a $250 one-time payment.
Unemployment Insurance, Employment Services and Job Training
* $900 million for states' employment security systems, including $500 million for administration of unemployment insurance (UI) and $400 million for the Wagner-Peyser program, with particular emphasis on providing reemployment services to UI claimants. The new Wagner-Peyser funding will increase the current funding level by over 50%.
* Unemployment benefits will be extended through 2009.
* $2.5 billion for states that expand unemployment insurance to allow more low-wage and part-time workers qualify for benefits.
* $3.95 billion for job training for adults, dislocated workers and youth.
Trade Adjustment Assistance
A major overhaul of the Trade Adjustment Assistance program is included in the package. The bill expands the program to service workers and public sector employees, and increases funding for the administration of the program. We also secured a commitment from the Obama Administration that the Labor Department will ensure that the program is administered by state merit staff employees.
Transportation
* $27.5 billion for modernizing roads and bridges.
* $8.4 billion for public transit.
Child Support Enforcement
* $1 billion to restore cuts to states' and counties' child support enforcement programs. The bill includes a two-year restoration of federal funding for states' child support enforcement programs which was cut in a previous law.
Temporary Assistance for Needy Families (TANF)
* $2.7 billion for states' TANF Emergency Contingency Fund and Supplemental Grants. This will help states pay for benefits, and they can transfer some of these funds into the child care block grant.
Community Development Block Grant (CDBG)
* $1 billion in additional CDBG funds, most of which is targeted to local governments.
Public Housing
* $4 billion to the public housing capital fund to repair, modernize, and construct public housing units.
Infrastructure
* $6 billion for Clean Water and Drinking Water State Revolving Funds.
(Linda Bennett- lbennett@afscme.org; Fran Bernstein- fbernstein@afscme.org)
FAA Reauthorization Bill Introduced in the House
This week, a bill to reauthorize the Federal Aviation Administration (FAA) was introduced in the House just weeks before a short term extension is due to expire. Transportation Committee Chairman Rep. James Oberstar (D-MN) and Aviation Subcommittee Chairman Rep. Jerry Costello (D-IL) introduced the legislation. The legislation authorizes nearly $70 billion for the FAA for four years.
Of particular importance to AFSCME and other FAA unions, the bill would create a process for settling labor disputes. It establishes an impasse procedure that encourages collective bargaining and resolution of negotiations through impartial binding third-party arbitration. Although the AFSCME FAA units finally got a contract, other unions are still experiencing problems.
In addition to the labor protections, the bill would help the agency modernize its operations and provide historic funding levels for its capital programs. The bill also increases the number of aviation safety inspectors and creates an independent Aviation Safety Whistleblower Investigation Office. (Cynthia Bradley- cbradley@afscme.org)
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AFSCME Department of Legislation
Phone: 202/429-5020 or 800/732-8120
Fax: 202/223-3413
E-mail: legislation@afscme.org
Website:
http://www.afscme.org/Produced by Union Labor