Below are the top stories of the week from Capitol Hill

[Omaha Steve]

January 9, 2009

In this issue:

* 111th Congress Opens with Expanded Democratic Majorities in Both Houses
* New Congress Begins Work on Economic Recovery Package
* House Passes Important Pay Equity Bills
* House to Take Up Children's Health Bill Next Week

111th Congress Opens with Expanded Democratic Majorities in Both Houses
On January 6th, the 111th Congress opened with swearing in ceremonies and expanded Democratic majorities in both the House and Senate. In the House, the Democrats added 21 seats to its majority for a total of 256 seats, compared to 178 Republican House seats. A special election will be held in April to fill Rep. Rahm Emanuel's (D-IL) now-vacant seat. Rep. Emanuel resigned to be President-elect Obama's Chief of Staff.

In the Senate, nine new Senators were elected, seven Democrats and two Republicans. Republicans now have seven fewer seats than in the last Congress, and 14 fewer seats than four years ago. Two Senate seats are not finally resolved. On January 5th, Minnesota's State Canvassing Board certified Democrat Al Franken as the winner of that Senate race by 225 votes after a state-wide recount. His opponent, incumbent Senator Norm Coleman (R), has challenged the results in court, which may prevent Franken from being sworn in until the legal challenges are resolved. And, in Illinois, embattled Gov. Rod Blagojevich's (D) ability to choose a successor to complete President-elect Barack Obama's Senate term has been challenged by the Secretary of the Senate who ruled his appointment was incomplete for failing to have the required signature of Illinois' Secretary of State. However, it appears that Roland Burris (D), Blagojevich's appointee, could be seated in the near future if he complies with legal requirements and reaches agreement with Senate leaders. If both Franken and Burris are seated, the Democratic caucus will have 59 seats (including two Independents who caucus with the Democrats), and the Republicans will have 41 seats. Democrats are one vote shy of the 60 vote majority required to bring most legislation to a vote on the Senate floor.
(Fran Bernstein- [e-mail])

New Congress Begins Work on Economic Recovery Package
With states cutting services and jobs, a recession from coast to coast and the unemployment rate at 7.2%, the new 111th Congress is beginning to draft an economic recovery package. Acting quickly and including much needed aid to states and local governments is critically important to millions of working families. At a Democratic House leadership forum on Wednesday, leading economists told lawmakers that the nation is losing half a million jobs a month and the only way to reverse this economic decline is through aggressive and quick government action.

As part of a comprehensive package to protect jobs, spur job creation and create long-term growth, AFSCME and leading economic experts are calling for $100 to $150 billion in aid to states and local governments through an increase in the federal share of Medicaid and other programs. This approach is a proven and effective mechanism to assist states because Medicaid is the largest category of total state expenditures and delivers federal funds to states rapidly. Providing states an increase in federal support for Medicaid over 24 months will reduce budget pressures to cut other important public services and preserve health coverage.

Senate and House Republicans have signaled strong opposition to aid to states and local governments. Senate Republican Leader Mitch McConnell (R-KY) has called for making state aid a loan, which would in effect deny states any aid because most states would not be able to accept or use federal loans. Many states have constitutional or other legal barriers that explicitly prohibit them from borrowing funds to cover operating expenses.

AFSCME is also lobbying for additional investments that would assist state and local governments to be included in the economy recovery package. These include an infusion of federal funds for administration of states' unemployment insurance (UI) programs and funds for states that expand UI benefits to more unemployed workers; a two-year restoration of federal matching funds for state and county child support enforcement programs which were reduced in the Deficit Reduction Act; funding for infrastructure repair and maintenance projects; education grants and additional funding for child care and Head Start. The UI Modernization Act, which passed the House in the last Congress, would give states $500 million to help them handle the surge in applications for unemployment benefits and provide additional funds to states that allow more low-wage and part-time workers to qualify for benefits. We are also working with the states to secure additional funding for the Wagner-Peyser system so that more job counselors can be hired to help connect unemployed workers to jobs and training.

On the tax side, President-elect Obama and congressional leaders are discussing supplementing the economic recovery bill's investments with proposed tax cuts, including a payroll tax credit of $500 for individuals and various corporate tax breaks. Although Obama has floated some specifics and suggested approximately 40% of the entire economic recovery bill should be tax cuts, there is not yet consensus about the details or total cost of tax cuts.
(Linda Bennett- [e-mail], state aid; Marc Granowitter- [e-mail], taxes; Nanine Meiklejohn- [e-mail], UI; Cynthia Bradley- [e-mail], infrastructure; Becky Levin- [e-mail], child care/Head Start)

Urge Congress to Pass an Economic Recovery Package

We need to jump start the economy NOW! Please call the Capitol Switchboard at 1-888-460-0813 and ask to speak to your Representative and Senators.

Tell them to support an economic recovery plan that creates jobs and invests in public services. Urge Congress to pass an economic recovery package with at least $100 billion in state and local aid that will maintain needed public services and help working families.

House Passes Important Pay Equity Bills
The House passed two key bills, the Lilly Ledbetter Fair Pay Act (H.R. 11) and the Paycheck Fairness Act (H.R. 12). These two bills are critical to ensure that women and families get the pay that they deserve to survive these difficult economic times. H.R. 11 restores longstanding protections against wage discrimination, and H.R. 12 mandates concrete steps to prevent wage discrimination and hold employers accountable.
(Becky Levin- [e-mail])

House to Take Up Children's Health Bill Next Week
The House is moving quickly to pass legislation reauthorizing the State Children's Health Insurance Program (SCHIP). We expect the bill to be debated by the full House as early as Tuesday. While a draft of the bill has not been released, we expect it to be similar to bills passed by the House and Senate in 2007, but vetoed by President Bush. House and Senate Democratic leaders hope to have the bill ready for signing by President-elect Obama, shortly after his inauguration. (Barbara Coufal- [e-mail])

Click here to join the AFSCME e-Activist Network: http://www.unionvoice.org/afscme/join.html

AFSCME Department of Legislation
Phone: [phone] or 800/732-8120
Fax: [phone]
E-mail: [e-mail]
Website: http://www.afscme.org/
Produced by Union Labor

[Sebastian Doyle]

1. Oh, what a relief.

For a minute there, I thought this gonna be something from a certain PUMA web site. :rofl: