AFSCME Legislative Report

June 10, 2005

AFSCME LEGISLATIVE REPORT

Congress — Week ending June 10

Senate GOP leaders consider next move on Social Security. Dangerous campaign finance reform bill clears House panel. Janice Rogers Brown confirmed by Senate. Spending bills move forward in both chambers.

In this issue:

Senate GOP Leaders Consider Next Move on Social Security

While Rep. Bill Thomas (R-CA), Chairman of the Ways and Means Committee, continues to move ahead with plans to consider retirement security legislation that would include the Bush plan to privatize Social Security, Senate Republican leaders appear stymied for the moment on what to put in a bill and whether to move now or wait for Democratic support. In order for a Social Security bill to pass in the Senate, it is necessary to have some Democratic support but Senate Democrats have refused to negotiate until Bush takes his private accounts idea off the table. This week, Sen. Rick Santorum (R-PA), an outspoken proponent of the President's privatization plan, publicly expressed concern that unless the Senate can move ahead with a bill soon there may not be a bill at all.

But Senate GOP leaders are not giving up. Sen. Charles Grassley (R-IA), Chair of the Finance Committee, who earlier said that he would put out a draft bill only when all his panel's Republicans agree — a prospect that seems unlikely since Sen. Olympia Snowe (R-ME) has made it clear that she will not support private accounts — now says that he may begin with a bill that would raise the Social Security retirement age and/or cut benefits in order to address the program's long term financial solvency. Once he has secured GOP agreement on that subject, he indicated that he wants to move to creating private accounts in Social Security.

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Dangerous Campaign Finance Reform Bill Approved by House Committee

On Wednesday, the Committee on House Administration amended and then approved a campaign finance bill (H.R. 1316) introduced by Reps. Mike Pence (R-IN) and Al Wynn (D-MD). The bill was approved along party lines with all Democrats opposing the bill and all Republicans supporting it.

AFSCME opposes H.R. 1316 because it would increase the ability of wealthy individuals and trade associations to make political contributions to candidates and parties, enhancing their domination of the political process at the expense of working families.

The bill has not been scheduled for House floor debate, but may be taken up before the July 4th recess. A different, but also harmful, Senate campaign bill (S. 1053) has been approved by committee but has not yet been scheduled for floor debate.

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Janice Rogers Brown Confirmed by U.S. Senate

By a vote of 56-43, the Senate confirmed California Supreme Court Justice Janice Rogers Brown to the United States Court of Appeals for the D.C. Circuit. Fifty five Republicans, joined by one lone Democrat (Sen. Ben Nelson, D-NE) voted to confirm the controversial nominee. AFSCME was strongly opposed to Justice Brown's nomination because of her longstanding commitment to roll back basic rights and the safety net enjoyed by all Americans. Her rulings, writings and speeches show a deep hostility to the rights of minorities, the elderly, the disabled and the rights of children. She has constantly demonstrated hostility to the role of government, making her confirmation to the second highest court in the land particularly alarming.

Three more of President Bush's judicial nominees were also confirmed, including William Pryor, Jr. who was approved for a seat on the 11th Circuit on a vote of 53-45.

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President Threatens to Veto Highway/Transit Bill

On the eve of the first meeting to negotiate the differences between the House and Senate versions of the highway/transit bill, President Bush issued yet another veto threat of the bill that would continue funding and set policy for our nation's transportation programs. The President informed House and Senate leadership in a meeting on June 8th that he will veto the bill (H.R. 3) if the spending level is higher than his requested $284 billion. The Senate-approved bill was $11 billion more than the President requested. The current spending authority for highway, transit and road safety programs expires June 30.

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AFSCME Testifies on Social Security and Public Employee Pension Issues

AFSCME Director of Legislation Chuck Loveless testified before the Social Security Subcommittee of the House Ways and Means Committee at a hearing on Social Security and the system's impact on public employees. The testimony outlines AFSCME's views in opposition to imposing private investment accounts as part of Social Security or cutting benefits. In addition, the statement discusses AFSCME's reasons for opposing mandatory Social Security coverage for non-covered public employees and explaining the need to make corrections in the onerous pension laws called the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). As part of the testimony, AFSCME released an updated cost estimate from the Segal Company, showing the five-year, employer-employee cost of mandating Social Security coverage for newly hired state and local employees to be a whopping $44 billion.

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Administration Proposes to Throw Out Civil Service Protections

The Bush Administration has drafted legislation that would throw out decades-old civil service protections enjoyed by federal employees. Even before the ink is dry on personnel overhaul changes at the Departments of Defense and Homeland Security and before the changes have been evaluated, Bush is proposing to abolish the federal General Schedule pay system and replace it with a pay-for-performance system and change procedures for discipline appeals, bargaining impasses and unfair labor practices for the rest of government. The far-reaching legislation would lead to the very situation that the civil service reform bill was originally passed to counteract — political patronage and favoritism. The legislation is in draft form but could be introduced soon.

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House Passes Agriculture Spending Bill

The House passed by a vote of 408-18 the FY 2006 appropriations bill for the Department of Agriculture and the Food and Drug Administration (FDA). The bill provides $16.8 billion for discretionary funding, which is about the same as FY 2005 and $93 million more then the President's request. The bill includes language to prohibit the FDA from spending money to enforce a ban on imported drugs from Canada. It also includes $5.3 billion for Special Supplemental Nutrition Programs for Women, Infants, and Children (WIC), an increase of almost $22 million above FY 2005 and a decrease of $253 million below the Administration's FY 2006 request and $40.7 billion for Food Stamps.

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House Labor-HHS-Education Appropriations Subcommittee Approves Spending Bill

The House Appropriations Subcommittee on Labor-Health and Human Services (HHS)-Education approved its spending bill for FY 2006. The bill provides $164 billion less for the programs in its jurisdiction than last year. Democrats on the subcommittee complained that the measure significantly underfunds key education and health programs.

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House Appropriations Committee Cuts Funds for Justice Programs

The House Appropriations Committee voted on the Science-State-Justice-Commerce Appropriations bill and provided limited FY 2006 funds for several Justice Department programs of key concern to state and local governments, including only $348 million for the Byrne Justice Assistance Grants program and $355 million to reimburse states for criminal alien assistance (SCAAP). The Committee rejected President Bush's proposal to move the Housing and Urban Development's (HUD) Community Development Block Grant program (CDBG) from HUD to the Commerce Department and reduce its funding. The full House is expected to consider the bill next week. The Senate has yet to consider this legislation.

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Senate Interior Appropriations Subcommittee Restores Clean Water Funds

The Senate Appropriations Subcommittee on Interior and Related Agencies voted to approve $1.1 billion for the FY 2006 budget for the Clean Water State Revolving Loan Fund, which helps states upgrade water and sewage treatment plants. The Subcommittee's $26.3 billion bill (H.R. 2361) provides $370 million more than President Bush requested and $241 million more than the House approved May 19 bill. The full Senate Appropriations Committee is expected to consider this legislation on June 9.

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Congress Moves Closer to Vote on Bush Trade Agreement

House and Senate committees are preparing to conduct advisory "mock" consideration this month of legislation that would put in place the Central American Free Trade Agreement (CAFTA) with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and an attached but separate accord with the Dominican Republic (DR). The CAFTA-DR's prospects in Congress remain uncertain. Unions, human rights and environmental groups, as well as domestic sugar producers, oppose the pact, and many lawmakers, including some typically pro-trade Democrats, are concerned that another free trade agreement will give U.S. corporations more incentives to move U.S. jobs abroad. Additionally, some lawmakers maintain that CAFTA will hurt Central American farmers and prompt them to try to enter the United States illegally. Once the Senate Finance Committee conducts its mock meeting of the trade pact, the House Ways and Means Committee will quickly follow and then implementing legislation will be introduced for up-or-down votes in both chambers.

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