AFSCME Legislative Report

September 16, 2005

AFSCME LEGISLATIVE REPORT

Congress — Week ending September 16

Hurricane relief moves in Congress including bills dealing with Medicaid, Housing, Education and Unemployment Insurance. Senate panel questions President Bush's nominee to serve as Chief Justice.

In this issue:

Hurricane Relief Front and Center in Congress

Congress approved a second Hurricane relief package of $51.3 billion which is intended to provide immediate relief to individuals and specifically for housing assistance, but a substantial portion also has been given to the Federal Emergency Management Administration (FEMA), with lesser amounts to the Army Corps of Engineers, the Department of Defense and other Federal agencies. Some are saying the total effort is likely to top $200 billion in new emergency funding when Congress is finished. A third relief package was announced by President Bush when he addressed the nation from New Orleans. President Bush used the nationally televised address in an effort to mend his image and advance a strong agenda showing leadership in a time of crisis. Specific legislation is expected that would provide job training and housing for people who have to start over, as well as tax credits for businesses to stay in the devastated region.

Not waiting for the President, Congress is working overtime on its efforts to respond to the crisis. The House passed a package of tax breaks for victims of Hurricane Katrina and Sens. Charles Grassley (R-IA) and Max Baucus (D-MT) have announced a $3- $5 billion tax package aimed at relief for individual and businesses. A second larger tax bill containing business enterprise zones in affected areas and more tax credits to business is also expected.

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Congress Delays Budget Cutting Bill

In addition, congressional leaders in the face of public outcry have announced they will temporarily delay action on making cuts in many of the same vital public safety net programs such as Medicaid and Food Stamps that are in such great demand in the Gulf Coast region. Congress was scheduled to take action earlier this month on the so-called budget reconciliation legislation. In addition to budget cuts totaling $35 billion, Congress also called for new tax cuts of $70 billion. The House and Senate Republican leaders announced new target dates for this process. It is now expected that sometime during the week of October 17th, the House and Senate committees will report their budget spending cut packages to the House and Senate Budget Committees. The Budget committees are expected to report out a budget bill by October 26th with floor consideration to occur shortly thereafter. The tax portion of the budget is expected to be considered in November. AFSCME believes the budget cuts and tax cuts should be scrapped entirely and not just delayed.

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Senate Committee Questions Supreme Court Nominee

The Senate Judiciary Committee completed three days of hearings on President Bush's nomination of John G. Roberts to replace Chief Justice William Rehnquist. Roberts underwent more than 16 hours of questioning on issues like the right to privacy, civil rights and the environment. Unfortunately, Roberts was not forthcoming in sharing his opinions on these important issues that may come before the court. He also failed to distance himself from the failed anti-civil rights policy that was a part of President Reagan's legacy.

AFSCME has grave concerns about Judge Roberts' nomination. Judge Roberts' opinions, writings, and his activities in the Reagan White House clearly show that he does not share our commitment to equal justice. Records show that Roberts played a significant role in efforts to weaken civil rights laws, women's rights and environmental protections. In addition, he clearly has a narrow view of the federal government's right to impose labor standards on state governments, a view that should be particularly troubling for employees of state governments.

The committee is scheduled to vote on the nomination the week of September 18th and the full Senate is expected to vote the week of September 26th.

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Bipartisan Disaster Relief Medicaid Bill Introduced in the Senate

Senators from both parties have joined together to propose legislation to provide urgently needed health coverage to people and states affected by Hurricane Katrina. The proposal, introduced by Sens. Grassley and Baucus would immediately provide Medicaid coverage to low-income Katrina survivors, with the federal government paying for 100 percent of the costs, cancel the federal matching rate reduction scheduled for FY 2006 and simplify the enrollment process for eligibility. The bill which is strongly supported by AFSCME is expected to be voted on by the Senate early next week.

AFSCME Leaders and Activists:
Call your Senators
Urge them to support the Grassley-Baucus
Disaster Relief Medicaid bill.

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First Responder Funding Increases Rejected by Senate

During the debate on the bill funding the Departments of Commerce and Justice (H.R. 2862), two amendments were offered to increase funding for first responders but both failed on near party-line votes. An amendment offered by Sen. Debbie Stabenow (D-MI) would have provided $5 billion in funding for state and local governments for interoperable communications equipment for first responders. Sadly, the communications breakdown among first responders during Hurricane Katrina demonstrated that state and local governments still do not have the communications equipment needed to deal with a large scale disaster. The Stabenow amendment failed by a vote of 40 to 58.

An amendment offered by Sen. Joseph Biden (D-DE) would have provided $1.02 billion in funding for local law enforcement programs, primarily the Community Policing Services program (COPS). The amendment failed by a vote of 41 to 56.

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President Recycling Flawed Personal Reemployment Accounts for Katrina Victims

Despite congressional reluctance to approve an earlier proposal to issue fixed amount accounts to unemployed workers that could be used for income assistance, training, child care and other services, the Bush Administration is recycling the concept for unemployed victims of Katrina. Although details have not been announced, the accounts will provide $5,000 for workers to use for training, child care and other support services. Like the earlier proposal, it appears that they will have to use these funds to purchase training services that they otherwise could receive free of charge from local one-stop centers. It is not clear whether the Administration will try to advance this plan as an alternative to extending unemployment benefits as they did several years ago.

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Bill Introduced to Undo President Bush's Proclamation that Cuts Wages and Allows Contractors to Pay Substandard Wages to Gulf Coast Workers

Rep. George Miller (D-CA) introduced legislation that would undo President Bush's proclamation from last week that cuts wages for workers involved in the reconstruction of areas damaged or destroyed by Hurricane Katrina and its subsequent flooding. Under longstanding federal law, the Davis-Bacon Act, companies that win federal construction contracts must pay workers the prevailing wage — the wage typical for their specific job function in the local area where the work is being completed. Bush's proclamation suspends this wage requirement indefinitely in areas affected by Hurricane Katrina, including parts of Alabama, Louisiana, Mississippi, and Florida. Miller's legislation would overturn the President's proclamation.

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Schools May Receive Additional Funding, While Waiving No Child Left Behind Requirements

The Education Department is readying plans to waive No Child Left Behind requirements for states affected by Hurricane Katrina, provide cash assistance to school districts absorbing students, and finance new schoolbooks, demolition and reconstruction of school buildings and temporary trailers and provide funding for new teachers for schools bursting with Katrina evacuees.

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School Lunch Requirements Eased

The U.S. Department of Agriculture (USDA) has responded to the devastation left behind by Hurricane Katrina by reducing barriers to feeding school children in affected areas. This policy eases National School Lunch program requirements that simply can not be met in the face of this disaster, including meal components, record keeping, enrollment and location requirements.

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AFSCME Urges Federal Government to Ensure Quality Child Care, Early Head Start, and Head Start Environments for Children Impacted by Hurricane Katrina

The destruction caused by Katrina has devastating effects for families with young children. As thousands of families have been forced to relocate across the country, and other families begin to return to some of the affected areas, they need immediate help in order for their children to participate in child care, Early Head Start and Head Start. Prior to the disaster, the funding levels for child care, Early Head Start and Head Start were insufficient to serve all eligible children.

AFSCME is working with a coalition of early education advocates to urge Congress to provide substantial new emergency funding through the U.S. Department of Health and Human Services (HHS) for increased access to child care assistance and Head Start and Early Head Start programs and to support rebuilding of the child care and early education infrastructure in the states most impacted by Hurricane Katrina.

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Head Start Reauthorization Bills Moving Forward

Head Start reauthorization bills (H.R. 2123, S. 1107) are moving through the House and Senate. H.R. 2123 is expected to hit the floor on Wednesday. The only good news is that neither bill contains the state block grant proposal that we vigorously opposed and that derailed the reauthorization last year. However, both bills would increase the education and training requirements for all Head Start staff but without providing sufficient funding to assist programs and staff meet the higher standards.

House GOP Leaders plan to offer a "charitable choice" amendment to the bill that would allow religiously-affiliated Head Start providers to discriminate on the basis of religion when hiring teachers, assistants and other workers. AFSCME, the National Head Start Association, civil rights, civil liberties and many religious organizations are lobbying to defeat the amendment.

Without new money for teacher salaries, AFSCME opposes increased credentialing requirements.

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Senate Judiciary Committee Reauthorized the Violence Against Women Act (VAWA) with Amendment to Provide Men Benefits

The Senate Judiciary Committee voted Thursday to reauthorize a law aimed at combating violence against women, after adopting an amendment that would allow men to qualify for program benefits under the bill.

Other provisions of the amendment would increase penalties for stalking when the offender was subject to a protective order and for repeat offenders.

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House GOP Insists on Moving Forward to Privatize Social Security

House Republican leaders insisted that they will move forward and bring legislation to privatize Social Security to the House floor for a vote this fall. There had been speculation that the Hurricane Katrina crisis would push GOP plans to move forward on privatizing Social Security off the legislative calendar for this year. However, House Speaker Dennis Hastert (R-IL) and Ways and Means Social Security Subcommittee Chairman Jim McCrery (R-LA) said at a news conference that Social Security remains on the GOP's agenda and that "Social Security is not off the table for this year but only slightly delayed."

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Mini Debate on Campaign Finance Likely in Senate Next Week

Late next week, the Senate is expected to take up the bill (H.R. 3058) that funds the Departments of Transportation, Treasury and several other federal agencies. Sens. John McCain (R-AZ) and Russell Feingold (D-WI) will offer an amendment to strip a narrow but harmful campaign finance provision from the bill. AFSCME is lobbying in support of the McCain-Feingold amendment.

Earlier this summer, the Senate GOP leadership tucked the campaign finance provision into (H.R. 3058) over the objections of Democrats. The provision would allow leadership political action committees (PACs) to make unlimited transfers of funds to national party committees, such as the Republican National Committee or the Democratic Congressional Campaign Committee.

AFSCME opposes the leadership PAC provision in H.R. 3058 because it circumvents the current limits on the amount that wealthy individuals and PACs can give in support of a federal officeholder's campaign. Under the provision, contributions to a lawmaker's leadership PAC could be transferred to a party committee to be used for the lawmaker's own campaign. Currently, a lawmaker cannot use funds raised by his leadership PAC for his/her own election. The ultimate result of the provision is to allow wealthy contributors to play an even greater role in elections and to further dominate the policy making process at the expense of the needs and concerns of ordinary Americans. In addition, because the party that controls Congress is able to raise more money for leadership PACs, the provision creates a fundraising advantage for the party in power.

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Law Enforcement Amendments to Justice Spending Bill

During the Senate debate on the FY 2006 Commerce-Justice-Science spending bill (H.R. 2862), four amendments were adopted that would assist law enforcement officers in combating the growing methamphetamine epidemic in the country. The following amendments were adopted:

  • Sen. Jeff Bingaman (D-NM) amendment that earmarks $2 million for grants for methamphetamine prevention education programs in elementary and secondary schools;
  • Sen. Ken Salazar (D-CO) amendment to establish a Methamphetamine Task Force within the Drug Enforcement Agency;
  • Sens. Jim Talent (R-MO) and Dianne Feinstein (D-CA) amendment that incorporates the text of the "Combat Meth Act of 2005" (S. 103)
  • and Sens. Maria Cantwell (D-WA) and George Allen (R-VA) amendment that provides an additional $19.9 million for the Methamphetamine Hot Spots program.

Other amendments that were adopted effecting law enforcement and corrections officers are:

  • Sen. Patrick Leahy (D-VT) amendment that would waive the state match requirement under the Bulletproof Vest Partnership grant program for purposes of replacing defective vests;
  • Sen. Mark Dayton (D-MN) amendment that increases funding for Justice Assistance Grants by $275 million.

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Annual Survey Finds Decline in Employer-Based Health Insurance as Coverage Cost Increases Slow but Still Outpace Inflation

Only 60 percent of public and private employers offered health care coverage to their workers in 2005, down significantly from 69 percent in 2000 and 66 percent in 2003, according to the 2005 Employer Health Benefits Survey conducted by the Kaiser Family Foundation and Health Research and Educational Trust. While premium increases were two percentage points lower in 2005 as compared to 2004 (9% vs. 11%), they continue to outpace inflation and wage growth. In 2005, the annual premiums for family coverage cost more than the gross earnings for a full-time minimum wage worker.

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September Marks 8th Year Without an Increase in the Federal Minimum Wage

In an unhappy anniversary, the federal minimum wage has remained stuck at $5.15 an hour since September, 1997. The Center on Budget and Policy Priorities and the Economic Policy Institute report the following disheartening statistics:

  • The minimum wage is at a 56-year low relative to the average private sector wage.
  • The purchasing power of the minimum wage has deteriorated by 17 percent over the past eight years.
  • Since the inception of the minimum wage, there has been only one other period (from 1981 to 1990) in which the minimum wage has remained unchanged for more than eight years.

AFSCME, along with the AFL-CIO, its member unions and other allies, has been waging annual battles in Congress for an increase in the federal minimum wage. Thus far, the Republican leadership has defeated our efforts.

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Intergovernmental Relations — Update

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

  • More Than One Million Kids Could Lose Medicaid Coverage Under NGA Proposal — Between 500,000 and 1.4 million children would lose health coverage under the National Governor's Association (NGA) proposal for reducing Medicaid costs, according to a study released this week by PICO, a national network of faith-based community organizations. The NGA's proposal to Congress would increase co-payments, premiums and deductibles currently covered by Medicaid, which would deter many families from seeking needed health care. "It's hard to make sense of a reduction of a program that would provide a safety net for children, who are the most vulnerable in the country," said Roy Riley, president of the Evangelical Lutheran Church Conference of Bishops. PICO is urging lawmakers to stop cuts through budget reconciliation that would reduce federal Medicaid spending while our country is still reeling from Hurricane Katrina. AFSCME and countless others are urging Congress to completely cancel these cuts.

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