AFSCME Legislative Report

April 22, 2005

AFSCME LEGISLATIVE REPORT

In this issue:


Senate Headed For Nuclear Showdown
The Senate Judiciary Committee set up a potential "nuclear" showdown in the Senate as early as next week by approving two Appeals Court nominees whose far-right judicial philosophies and troubling judicial activism resulted in their nominations being blocked during the last Congress. The Republican-controlled Senate Judiciary Committee on identical 10-8 party-line votes gave its approval to Texas judge Priscilla Owen and California judge Janice Rogers Brown, who were nominated by Bush for lifetime judgeships on the regional U.S. Appeals Courts, the nation's second-highest courts. They were blocked from confirmation by Democratic filibuster threats during Bush's first term but were renominated by the President after he won a second term in November.

Democrats have already said they will block the nominations again because of their extremist views. But Senate Majority Leader Bill Frist (R-TN) has threatened to change longstanding Senate rules and ban judicial filibusters (the "nuclear option") to stop Democrats from blocking the judicial nominees again, and has been working to secure the 50 votes he needs from his Republican caucus to make the rules change effective. Currently, it requires 60 votes in the Senate to overcome a filibuster. Senate Democratic Leader Harry Reid (NV) has vowed to slow or halt Senate action on routine business if Frist follows through with his threat to force up-and-down votes in which nominees could be confirmed by a 51-vote majority of the 100-member Senate.

AFSCME is strongly opposed to the rule change as an abuse of power that will not be limited to judicial nominations. Once the nuclear option has been used to push through judicial nominees, it inevitably will be used to enact legislation that will weaken or eliminate important worker protections and civil rights.
(Cynthia Bradley - cbradley@afscme.org)

TAKE ACTION
We would urge AFSCME members to take action on this issue by sending letters to their Senators.  Please click here.

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Budget Action Still Not Finished
Congress has once again missed the April 15th deadline for completion of action on the federal budget. House and Senate negotiators have yet to meet to resolve differences between the House and Senate bills largely because of the large cuts in Medicaid and other entitlements included in the House bill. Any budget resolution hinges largely on getting Senate GOP moderates led by Sen. Gordon Smith (R-OR) to agree to Medicaid spending cuts.
(Ed Jayne - ejayne@afscme.org)

AFSCME members should continue to call their Members of Congress at 202-224-3121 and tell them to oppose any congressional budget resolution that cuts vital public services to the state, cuts Medicaid, increases the deficit and gives more tax cuts to the rich.

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The Fight Over Private Accounts for Social Security Heats Up
Faced with solid Democratic resistance, the Chairman of the Senate Finance Committee, Charles Grassley (R-IA), said Wednesday he will try to craft a plan for overhauling Social Security that includes Bush's private investment accounts and that has only Republican support. Demonstrating their deep opposition to private accounts, Democratic leaders of the House and Senate will join a rally on Capitol Hill organized by AFSCME and its allies at the same time as Sen. Grassley is holding a hearing on Social Security on April 26th.

If even more evidence was needed to demonstrate that investing in the stock market instead of maintaining and strengthening the current Social Security structure of guaranteed benefits for life, the dramatic stock market slide over the past months is it. After running up gains early in the year, the Dow Jones industrial average has fallen more than nine percent in the last six weeks to its lowest level of the year. This is bad news for President Bush's argument that private accounts would be better for workers than Social Security's current structure. And, to make the timing worse, it comes just as the White House is preparing to begin discussing the politically painful benefits cuts that would be part of the President's plan.

Polls continue to show that Bush has made some modest headway in convincing Americans that there is a problem with Social Security, but his solution of private accounts is steadily losing favor.
(Marge Allen - mallen@afscme.org)

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Employee Free Choice Act Re-introduced in Congress
The Employee Free Choice Act (EFCA) (H.R. 1696 / S 842) was reintroduced in Congress at a Capitol Hill event attended by the leading Senate and House sponsors, Sens. Edward Kennedy (D-MA) and Arlen Specter (R-PA) and Reps. George Miller (D-CA) and Peter King (R-NY). The bill is identical to the EFCA introduced in the last Congress and would recognize card check as well as a secret ballot election as legal means for workers to choose a union. It would also require mediation and arbitration, if necessary, to reach a first contract and it increases penalties on employers for violations of labor law.

A panel of workers, including AFSCME member Shirley Brown from Resurrection Health Care in Chicago, spoke to members of Congress and the media about the difficulties of forming a union. Ms. Brown said she has been a housekeeper for nine years at West Lake Hospital, which is now part of the Chicago area Resurrection Health Care, and is one of 10,000-15,000 employees trying to organize a union. She said that after 20 years of work, some employees are only earning $10 per hour. Because of their union activities, their employer has intimidated and threatened the employees. The employer has also threatened layoffs and asked employees to sign anti-union petitions and statements. The employer has fired several pro-union employee activists.
(Marge Allen - mallen@afscme.org)

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Debate Over New Campaign Finance Bill Heats Up
Sens. John McCain (R-AZ) and Russell Feingold (D-WI) and Reps. Christopher Shays (R-CT) and Martin Meehan (D-MA) have introduced a new campaign finance bill called the "527 Reform Act of 2005". This bill would make it much more difficult for unions to engage in grassroots activity in support of state and local candidates. It would also shut down organizations such as America Votes and America Coming Together that, with financial support from labor, engaged in grassroots activity in 2004 that produced the highest voter turnout since 1968.

While the design of the bill would eliminate the grassroots work that unions and progressive organizations engage in, it would not have the same impact on conservative 527 organizations that could continue to raise large contributions from individual contributors. In addition, the bill would not have the same impact on corporations, allowing them to continue their involvement in political activity.

Next Wednesday, the Senate Committee on Rules and Administration will consider the McCain-Feingold bill. It is not clear when the bill will be debated on the Senate floor. The Committee on House Administration held a hearing this week on the bill.
(Barbara Coufal - bcoufal@afscme.org)

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House Expected to Debate Association Health Plans
Next week, the House of Representatives is expected to debate the so-called "Small Business Health Fairness Act of 2005" (H.R. 525). The bill would exempt association health plans (AHPs) from state insurance regulation, including patient protections and state solvency rules. The primary advocates for the bill include the National Federation of Independent Business, the anti-union Associated Building Contractors, and other business associations that plan to market these inadequate health care plans.

The bill is opposed by the labor movement because it would drive up costs for 80 percent of small employers and their workers. While proponents of the bill promote it as a way to expand coverage of small business workers, studies indicate that the bill could actually increase the number of uninsured.
(Barbara Coufal - bcoufal@afscme.org)

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Intergovernmental Relations - Update 

The following is a periodic report on the activities of state and local government interest groups.

Governors Urge Congress to Reauthorize Temporary Assistance for Needy Families

  • In a letter to Congress this week, the National Governors Association (NGA) urged both the House and Senate to pass legislation to reauthorize the Temporary Assistance for Needy Families (TANF) block grant and related programs. Some specific policy options the NGA supported include increased child care funding, a lower work participation rate for parents of very young children, an additional 12 months (for a total of 24 months) of vocational education that would count towards states meeting work requirements, and improved performance incentives that would protect states from federal penalties so long as they demonstrate progress in meeting work participation rates. These positions more closely track the provisions in the Senate Finance Committee's TANF reauthorization bill than those in the House Ways & Means Committee, Human Resources Subcommittee's bill.
    (Fran Bernstein - fbernstein@afscme.org)

HHS Secretary Outlines Plan to Reform Medicaid

  • U.S. Secretary of the Department of Health and Human Services Michael Leavitt outlined a five point plan for Medicaid "modernization" at the National Conference of State Legislators' spring meeting held last week in Washington, D.C. All are aimed at reducing Medicaid costs without tackling the more fundamental problem of rising costs for health care across the board. Secretary Leavitt's proposed reforms include allowing states the option to charge co-pays of "optional" beneficiaries as well as limiting the services Medicaid would cover for these beneficiaries. Leavitt also recommended renegotiating how much Medicaid pays for prescription drugs, stopping Americans from shifting their assets in order to qualify for Medicaid, and expanding Medicaid coverage for home and community-based care.
    (Fran Bernstein - fbernstein@afscme.org)

State Employee Health Care Costs Continue to Rise

  • Employee health care costs reached a new high in 2005, according to the 2005 State Employee Benefits Survey published by Workplace Economics, Inc., a Washington, D.C. economics consulting firm. As of January 1, 2005, the average total premium for active employee health insurance rose to $417 per month for single coverage and $937 per month for family coverage. Only thirteen states pay the full premium of health care coverage for individual employees, and just four states fully pay for family coverage. All 50 states make health insurance available to retirees up to age 65, and 48 states provide coverage under the state plan for retirees age 65 and older.
    (Fran Bernstein - fbernstein@afscme.org)

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