LEGISLATIVE REPORT February 6, 2009

[Omaha Steve]

Below are the top stories of the week from Capitol Hill.

AFSCME LEGISLATIVE REPORT
February 6, 2009

In this issue:

* Senate Debates Economic Recovery Package; Republicans Attack Aid to States
* President Obama Signs SCHIP Reauthorization
* President Obama Proposes New Limits on Executives' Compensation at Firms Receiving Future Government Aid
* 9/11 Health and Compensation Act Reintroduced in the House
* AFSCME Rallies for the Employee Free Choice Act
* Senate Confirms President Obama's Pick for Attorney General

Senate Debates Economic Recovery Package; Republicans Attack Aid to States
The latest bad economic news that the unemployment rate has climbed to 7.6% and is projected to get worse only adds to the pressure on the Senate to pass its version of the American Recovery and Reinvestment Act of 2009 (H.R. 1). At the time this report is being written, there are not enough votes to reach the 60 needed to close debate and pass the current package, which through adopted amendments has increased to more than $900 billion. The adopted amendments include tax cuts to encourage the purchase of new cars, additional funding for biomedical research, and a tax credit of up to $15,000 for home buyers. The Senate rejected along party lines an alternative package proposed by Sen. John McCain (R-AZ) by a vote of 40-57, with Sens. Ted Kennedy (D-MA) and Commerce Secretary-nominee Judd Gregg (R-NH) not voting. The McCain alternative would not have provided any relief for states and local governments, but would have cut corporate and individual income taxes, extended unemployment benefits and provided money for the Defense Department.

During the Senate debate, Republicans attacked the provisions which would provide federal funds to help states avoid cuts to jobs and services. Sen. Charles Grassley (R-IA) has filed amendments to drastically undermine the current $87 billion in aid to states through increased Medicaid funds. One Grassley amendment would cut the additional Medicaid funds to states that have been hit hardest by the recession. States which stand to lose funding under the Grassley amendment are: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Massachusetts, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Rhode Island, Virginia and Washington. Another Grassley amendment would limit states' ability to manage the Medicaid program and increase pressure to cut other valuable public services.

A bipartisan group of senators, including Sens. Ben Nelson (D-NE), Susan Collins (R-ME), Olympia Snowe (R-ME) and Evan Bayh (D-IN), among others, are trying to reach a compromise agreement through significant spending reductions in the overall package. The negotiations are in flux, but funding for Byrne law enforcement grants, the Child Care Development Block Grant and funding for schools and Head Start have been mentioned as on the chopping block. The Senate may have a cloture vote as early as Sunday.
(Linda Bennett- [e-mail])

Aid to states continues to be a target and at grave risk.

A two minute call to Senate offices can make a real difference now. Urge your Senators to SUPPORT the $87 billion in federal funds for Medicaid and to OPPOSE the Grassley amendments to weaken or reduce aid to states through the Medicaid program, and ANY proposals to cut education, Head Start, child care block grants, and grants to states for transportation. Here are some quick points to make:

* Aid to states will help the economy.
* When states cut spending, jobs or raise taxes, it contributes to a further slowing of the national economy.
* A temporary injection of new federal dollars for public services, like Medicaid, will help reduce the severity of the recession, especially with unemployment rates climbing to 7.6% and still rising.
* Noted economist Mark Zandi estimates that every dollar invested in state and local governments will yield $1.38 in economic growth.

Call 1-888-460-0813 now, as the Senate will be in session this weekend.

President Obama Signs SCHIP Reauthorization
With President McEntee in attendance, President Obama signed the reauthorization of the State Children's Health Insurance Program (SCHIP) on Wednesday. The new law, P.L. 111-3, passed the House earlier in the day. The Senate passed the measure January 29. The law provides an additional $32.8 billion over four-and-a-half years and is expected to provide health insurance for 4.1 million additional children in low-income families. It also restores states' ability to receive federal funding to cover legally present, immigrant children and pregnant women who have been in the country for fewer than five years. The new spending is offset by a 62-cent increase in the federal tobacco tax.

On the same day, President Obama directed the U.S. Department of Health and Human Services to withdraw Bush Administration letters to states which limited their flexibility to set income eligibility standards for their SCHIP programs.
(Barbara Coufal- [e-mail])

President Obama Proposes New Limits on Executives' Compensation at Firms Receiving Future Government Aid
President Obama proposed new restrictions on compensation for senior executives at firms receiving federal government assistance in the future, including establishing a $500,000 cap on annual compensation other than restricted stock awards, limiting severance pay, and limiting cashing out stock incentives until firms repay government assistance. Obama is responding to skyrocketing populist outrage against enormous payments – often tens of millions of dollars – to executives, even at corporations suffering multi-billion dollar losses. Some proposals will not be finalized until public comments are received. (Marc Granowitter- [e-mail])

9/11 Health and Compensation Act Reintroduced in the House
Reps. Jerry Nadler (D-NY) and Carolyn Maloney (D-NY) reintroduced the James Zadroga Health and Compensation Act (H.R. 847). The bill would create a health entitlement to screening and treatment and reopen the Victims' Compensation Fund (VCF) for responders and New York residents exposed to toxins released in the 9/11 attack.

This bill has strong support from House Democratic leaders and the bipartisan New York delegation but stalled last year when Mayor Bloomberg and the City of New York refused to commit the City's 10% share for the bill's health costs. A compromise was reached with the City, but the details are not final. We are working to ensure that the House moves this bill forward soon.
(Becky Levin- [e-mail])

AFSCME Rallies for the Employee Free Choice Act
AFSCME joined several unions at a rally on Capitol Hill in support of the Employee Free Choice Act (EFCA). Last Congress, the bill passed the House but failed to reach a vote on passage in the Senate. It is anticipated that Sen. Kennedy and Rep. George Miller (D-CA) will reintroduce the bill this month with the same language. AFSCME is committed to the fight to pass the Employee Free Choice Act and is actively seeking cosponsors.
(Andrea Zuniga DiBitetto- [e-mail])

Senate Confirms President Obama's Pick for Attorney General
This week, the Senate confirmed President Obama's choice for Attorney General, Eric Holder, by a vote of 75-21, despite some Senate Republicans' efforts to derail his nomination. He is a former prosecutor, federal judge and was deputy attorney general during the Clinton Administration. And, he is the first African American to hold this position. During his confirmation hearings, Mr. Holder demonstrated an impressive grasp of the important legal issues facing the Justice Department including interrogation and detention of terrorism suspects, civil liberties and civil rights.
(Cynthia Bradley- [e-mail])

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