AFSCME Legislative Report
February 18, 2005
AFSCME LEGISLATIVE REPORT
Congress — Week ending February 18
Major coalition formed to oppose President Bush's Social Security
privatization plan. House approves Class Action bill pushed by business lobby.
House Committee approves extension of Workforce Investment Act. The Congress
will be observing the President's Day recess next week. The Weekly Report
will resume on Friday, March 4.
In this issue:
AFSCME Announces Coalition to Fight Social Security
Privatization
Supporters and opponents in the effort to privatize Social Security continued
to dominate politics in Washington, DC and across the country. President Bush
was back on the road hoping to generate grassroots pressure on Congress,
especially the Senate. The targets of his attention this week were two moderate
Republican Senators from Maine, Olympia Snowe and Susan Collins. Snowe has
openly expressed doubts about Bush's plan and Collins has been noncommittal. In
interviews with regional reporters, Bush said that he was open to raising the
earnings cap. The Social Security payroll tax is currently levied on wages up to
$90,000. Until now, Bush has said that he was against raising the payroll tax,
but this week said that he was only against raising the payroll tax rate
(currently levied at 6.2 percent on workers and 6.2 percent on employers).
However, both House Speaker Dennis Hastert (R-IL) and Majority Leader Tom DeLay
(R-TX) immediately rejected the idea, making it clear they would consider
raising the cap as a tax increase.
President McEntee announced the creation of an all-out campaign to oppose
Social Security privatization, Americans United to Protect Social Security, led
by a coalition that includes, in addition to AFSCME, a number of high-powered
advocacy groups and the AFL-CIO. The fundraising goal for the campaign is over
$40 million. This group will be up against a much better funded
pro-privatization campaign organized by corporations, the Chamber of Commerce,
the Business Roundtable and major business trade organizations. The business
coalition pushing privatization is called the Coalition for the Modernization
and Protection of America's Social Security and has announced that it plans to
raise and spend $200 million.
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Hearings Begin on Federal Budget
House and Senate hearings began on the President's proposed budget for FY
2006, which begins on October 1, 2005, as House and Senate budget leaders said
they would stick to President Bush's goals and remain within his broad outline.
House Budget Committee Chairman Jim Nussle (R-IA) said, "(T)here is an
agreement…on what I would say are the macro numbers within the president's
budget." The Bush budget proposes deep cuts in nearly all non-defense domestic
spending programs as well as continuation of large tax cuts for the wealthy.
Bush says he wants to reduce the deficit in half in four years, but his plan
creates a $427 billion deficit before the new costs of the war in Iraq are added
in or the costs associated with his new Social Security privatization plan. The
budget would be extremely harmful for the states, as it would make significant
cuts in Medicaid, education and nearly all other federal programs that fund many
state and local public services. As a result, the Bush budget poses real threats
to federal funding for hundreds of thousands of AFSCME member jobs.
AFSCME members should immediately call their Members of Congress at
202-224-3121 and ask them to oppose the harmful Bush budget that continues tax
cuts for the wealthy and makes unconscionable cuts in federal programs that fund
state and local services.
Details on how the Bush 2006 budget plan affects state and local governments
and health care facilities are on the AFSCME website at:
http://www.afscme.org/action/fy2006.htm.
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House Approves Harmful Class Action Bill
On Thursday, the House approved the so-called "Class Action Fairness Act,"
(S. 5), a bill that would move many class action lawsuits out of state courts
and into federal courts. The bill was approved by a vote of 279 to 149. Fifty
Democrats voted wrong.
While the legislation is billed as a way to address perceived abuses in
consumer class action cases, the bill is so broadly written that it includes
class action cases filed as the result of violations of state laws, including
wage and hour and civil rights violations. Moving wage and hour and civil rights
cases to federal courts will, at a minimum, result in long delays for many
cases. Of even greater concern are federal procedural rules that will result in
the outright dismissal of cases where the employer has violated the laws of more
than one state. The biggest winners will be regional and national companies like
Wal-Mart who will be able to violate state wage and hour and civil rights laws
with little fear of being held accountable.
During the debate, Rep. John Conyers (D-MI) offered a substitute bill that
would have excluded state wage and hour and civil rights cases from the bill.
The substitute was defeated by a vote of 178 to 247. Nineteen Democrats opposed
the substitute, and no Republicans supported it. The President is expected to
sign the bill today.
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House Education and the Workforce Committee Clears
Workforce Investment Act Extension
The so-called "Job Training Improvement Act" (H.R. 27) cleared the House
Education and the Workforce Committee and is likely to go to the House floor the
first week in March. The bill, strongly opposed by AFSCME, was approved on a
party line vote with all Democrats voting against it. As in the subcommittee,
Democratic amendments to eliminate the block grant, the repeal of the civil
rights and religious protections, the personal reemployment accounts, and the
"infrastructure" provisions requiring the transfer of partner program funds to
one-stop operations were defeated. The Administration's proposal to give
governors the option to expand the block grant to vocational rehabilitation,
veterans employment services, adult education and several other programs (WIA
Plus) was not offered in the committee but could be proposed at some time in the
future.
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Senate Approves Bill With Limited Genetic
Discrimination Protections
On Thursday, the Senate approved the Genetic Nondiscrimination Act (S. 306)
by a vote of 98 to 0. The bill would prohibit employers, including public
employers, from using an individual's genetic information when making employment
decisions such as hiring, firing and promotion. The bill would also prohibit
health insurers from using genetic information to deny coverage or set premiums.
Unfortunately, the bill does not apply to workers' compensation insurers who
can require claimants to submit to a blood test to find genetic information that
could then be used to deny workers' compensation claims. For this reason, AFSCME
did not endorse the bill. The House is not expected to move a similar bill in
the near future.
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Bush Re-Submits Controversial Judicial Nominees
On February 14th, President Bush re-submitted to the Senate for confirmation
12 rejected judicial nominees for the federal courts of appeals. This move
demonstrates that the President intends to continue his effort to disregard the
role of the Senate to adequately review judicial nominees and fulfill its
constitutional obligation to advise the President on such matters. Although the
Senate has approved an overwhelming majority of President Bush's judicial
nominees, these 12 represent extreme views that are insensitive to large groups
of American people. These particular nominees have demonstrated extremely
hostile views to either the rights of working people, women, the environment
and/or to the elderly and disabled.
Return to Index
Plan To Cut Job-Training Program Sees Stiff Resistance
In Congress
Witnesses urged a receptive House panel to oppose President Bush's budget
proposal to eliminate a $1.3 billion program that provides vocational training
to states, arguing that such training has decreased dropout rates and led to
increased job placements for students.
Rep. Michael N. Castle (R-DE), chairman of the House Education and the
Workforce Education Reform Subcommittee, opposes the Bush plan and has sponsored
legislation (H.R. 366) to reauthorize the Perkins vocational program through
2011. There is a bipartisan agreement that federal vocational grants have played
a critical role for those who do not attend traditional colleges.
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Bankruptcy Bill Up Next On Senate Floor, Where Abortion
Fight Looms
The Senate Judiciary Committee easily approved a bill (S. 256) that would
make it more difficult for American workers to escape repaying debts using
federal bankruptcy protection, but the measure faces a much tougher test when it
comes to the Senate floor after the President's Day recess. The bill, which
closely resembles legislation that died last year, was approved by a 12-5 vote,
with three Democrats joining Republicans in support of the measure. They were
Sens. Dianne Feinstein (D-CA), Herb Kohl (D-WI) and Joseph R. Biden, Jr. (D-DE).
The bill would create a means test to determine whether individuals could
file under Chapter 7 of the bankruptcy code, which erases debts after the
forfeiture of some assets, or Chapter 13, which results in a court-ordered
payment plan.
Democrats withheld many of their most contentious amendments in part out of
respect for the wishes of Chairman Arlen Specter (R-PA), who has been diagnosed
with a form of Hodgkin's disease. They are concerned about the economic hardship
caused by the recent recession and the plight of those serving in the military.
Legislation To Aid Forest Communities Introduced In
Congress
Legislation that will reauthorize the Secure Rural Schools and Community Self
Determination Act (S. 267/H.R. 517) was introduced in the Senate and House on
February 3rd. This Act was a response to the decline in timber harvesting which
has resulted in a reduction in revenues in forest communities around the
country. The original Act restored essential infrastructures such as county
schools and roads. The Act also calls for the creation of forest improvement
projects that provide essential services in forest communities.
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Sweeping Election Reform Legislation Introduced
In response to continued voting irregularities, Sens. Hillary Rodham Clinton
(D-NY) and Barbara Boxer (D-CA) on February 17 unveiled comprehensive voting
reform legislation to make sure that every American is able to vote and every
vote is counted. The Count Every Vote Act of 2005 will provide a voter verified
paper ballot for every vote cast in electronic voting machines and ensures
access to voter verification for all citizens, including language minority
voters, illiterate voters and voters with disabilities. The bill mandates that
this ballot be the official ballot for purposes of a recount. The bill sets a
uniform standard for provisional ballots so that every qualified voter will know
their votes are treated equally, and requires the Federal Election Assistance
Commission to issue standards that ensure uniform access to voting machines and
trained election personnel in every community. The bill also improves security
measures for electronic voting machines.
The bill also designates Election Day as a federal holiday and requires early
voting in each state. It also provides for "no-excuse" absentee balloting,
enacts fair and uniform voter registration and identification, and requires
states to allow citizens to register to vote on Election Day. The measure also
requires the Election Assistance Commission to work with states to reduce wait
times for voters at polling places and restores voting rights for felons who
have repaid their debt to society.
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Intergovernmental Relations — Update
The following is a periodic report on the activities of state and local
government interest groups.
National Conference of State Legislatures: Bush's Budget Shifts Costs to
States
- The National Conference of State Legislatures (NCSL) released an
analysis of President Bush's budget, expressing concerns that, "federal
spending for many state programs would decrease dramatically...The budget as
proposed would merely export the federal deficit to the states." NCSL's
report noted that Bush's proposed budget would cut many state grants. It
would also underfund numerous federal spending mandates. NCSL noted the
education budget is especially troubling: "…funding for the Administration's
cornerstone education policy, No Child Left Behind Act, fails to be
adequately funded...The Individuals with Disabilities Act (IDEA) continues
to be funded at only a fraction of what it costs states to implement the
programs."
Click here for NCSL's report.
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National League of Cities: Bush's Budget Attacks Programs For Cities
- The National League of Cities (NLC) also evaluated President Bush's
proposed budget and was troubled that Bush, "includes reductions in and
elimination of many programs important to America's cities, such as
Community Development Block Grants (CDBG) and Amtrak operating subsidies."
NLC's analysis noted that Bush's overall domestic discretionary spending
would be problematic, "federal spending caps will actually equal program
cuts for important local priorities such as housing, education and the
environment." NLC also noted that Bush's "budget proposes more than 150
reductions and eliminations in non-defense discretionary programs. Among
these are many important NLC priorities, including CDBG - the long-time
funding source for urban renewal, as well as housing assistance, first
responders and Amtrak. The budget further attacks several programs assisting
low-income individuals, many of whom live in cities. Spending for
Medicaid... will be cut by $60 billion over 10 years. States will be forced
to pick up additional Medicaid expenditures, jeopardizing their annual
budget allocations to local governments."
Click here for NLC's report.
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Governors and State Legislators Urge Congress to Reject Costly Standards
for Drivers' Licenses
- The
National Governors Association (NGA) and the
National Conference of State Legislators (NCSL) are urging the U.S.
House of Representatives to reject proposed legislation that would impose
technological standards and verification procedures on states in their
issuance of driver's licenses that are beyond the capacity of even the
federal government, and represent a massive unfunded federal mandate. "These
bills...threaten to handcuff state officials with unworkable, unproven,
costly mandates that compel states to enforce federal immigration policy
rather than advance the paramount objective of making state-issued identity
documents more secure and verifiable," declared Maryland Delegate John
Hurson, NCSL's president and Illinois Senator Steve Rauschenberger, NCSL's
president-elect, in a letter to U.S. House members. Both the NGA and NCSL
have urged Congress to follow instead the framework in the Intelligence
Reform Act of 2004, which establishes a joint process between the federal
and state governments to develop and implement achievable standards to
prevent document fraud and other illegal activity related to the issuance of
driver's licenses and ID cards.
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National Governors Association Analyzes "State-of-the-States"
- The National Governors Association's Center for Best Practices released
"The
Governors Speak — 2005", an analysis of the first 28
"state-of-the-state" addresses delivered in 2005. While most states are
reporting improved economic and budgetary outlooks, common issues about
jobs, health care and education continue to dominate governors' concerns.
The report found that many governors are still grappling with deficits, but
in the context of improved revenues. And, even those governors with
projected surpluses are still facing difficult budgetary decisions in the
coming year.
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