AFSCME Legislative Highlights
Legislation Department
June 9, 2006
Congress — Week ending June 9
Senate defeats repeal of estate tax. House-Senate conferees reach agreement on supplemental spending bill.
In this issue:
Estate Tax Repeal Rejected in Senate
In a big win for AFSCME activists who mobilized against this costly and unfair measure, the Senate by a vote of 57-41 rejected efforts to approve the permanent repeal of the estate tax, H.R. 8. The final vote was three votes short of the 60 votes needed to end debate and move forward on the measure. Two Republicans, Sens. Lincoln Chafee (RI) and George Voinovich (OH), voted against the measure while four Democrats, Sens. Max Baucus (MT), Blanche Lincoln (AR), Ben Nelson (NE) and Bill Nelson (FL), broke with a majority of their party and voted for it.
At the conclusion of the vote Senate Majority Leader Bill Frist (R-TN), vowed to revisit the issue. Frist said, "This won't be the last time this year the Senate votes on this important issue — be it on the floor or in some other form." A number of senators have indicated their interest in pursuing a compromise measure, including the sponsor of the permanent repeal bill, Sen. Jon Kyl (R-AZ). However, the compromise Sen. Kyl is pushing is nearly as expensive as the $1 trillion permanent repeal effort. AFSCME remains strongly opposed to permanent repeal as well as costly reforms such as Kyl's and others that would lose nearly as much revenue.
House Subcommittee Approves Funding Plan for Labor, Health, Human Services and Education Programs
A House Appropriations Subcommittee approved an FY 2007 Labor, Health and Human Services, and Education bill this week that continues to slowly de-fund many key domestic programs.
Although Republican leaders added $4 billion to the amount requested by the Bush Administration overall, the bill falls far short of the amount needed to protect these crucial programs from actual cuts or continued erosion as program costs increase naturally from year-to-year. The subcommittee rejected the Administration's request to cut $500 million from the Local Services Block Grant, but the Department of Labor programs such as the employment service and job training were cut. Head Start, child care and No Child Left Behind were funded at the same level as last year, an effective cut in program levels, while energy assistance for low-income households was reduced significantly.
Democrats lead by Rep. David Obey (D-WI) will attempt to add $8 billion to the bill in order to restore cuts made last year and provide for some selected increases. His first effort will be next week when the full Appropriations Committee meets.
In a related development, agreement on a supplemental appropriations bill providing additional relief for Gulf States affected by hurricanes Katrina and Rita and for the Iraqi war was reached by the House-Senate conferees. The agreement jettisoned a higher level of spending earlier approved by the Senate for the Labor, Health and Human Services and Education programs.
Late Thursday, a conference committee of House and Senate leaders reached an agreement on a final spending package to provide additional funding for the Iraq war, Hurricane Katrina relief and pandemic flu preparedness. The conference report provides $250 million for state and local governments to prepare for pandemic flu. While the Senate version of the emergency spending bill included $289 million for a program to compensate health care workers and first responders who may become seriously injured by a future pandemic flu vaccine or other flu countermeasure, the final conference report failed to include any funding due to opposition by House GOP leaders.
House Appropriations Committee Approves HUD-Transportation Spending Bill
The House Appropriations Committee approved $139.7 billion for the FY 2007 Transportation-Treasury-HUD-Judiciary-D.C. spending bill. The bill provides $3.9 billion for the Community Development Block Grant, which is significantly above President Bush's request. The Committee voted 25-31 along party lines to reject an amendment to increase funding for the HOPE VI public housing program, which restores distressed housing. The increased funds would have been offset by reducing the recently enacted tax cuts for people earning more than $1 million a year. As a result, the underlying bill would zero out program funding and terminate HOPE VI. Funding for the Public Housing Capital fund remained at $2.1 billion ($261 million less then last year), and the Public Housing Operating fund remained at $3.5 billion (last year's level).
On tax related issues, the Committee voted 26-35 to reject Rep. DeLauro's (D-CT) amendment to continue the ban on new federal contracts with companies that locate offshore to avoid federal taxes.
Excluding supplemental appropriations, the bill funds highway programs at $39.1 billion-$3.5 billion more than last year. The full House could consider this bill as soon as next week.
House and Senate negotiators reached an agreement allowing transit systems in hurricane-affected areas to use federal funds for operating assistance. In addition, language that would have waived federal labor protections from transit spending was removed from the supplemental spending bill. Also, any future federal funds can flow to the region without requiring a 20 percent local match. This was necessary because the tax base has just been wiped out in New Orleans and surrounding areas.
Funding for First Responders Reduced in Homeland Security Department Spending Bill Approved by House
On Wednesday, the House approved its bill to fund the Homeland Security Department, which includes grants to state and local government for first responders. Funding for basic state preparedness grants, grants to high-density urban areas, firefighter and law enforcement grants were set at levels comparable to this year's funding level, with no adjustments for inflation. The Congress rejected efforts by the White House to make cuts in urban, firefighter and law enforcement grants. House GOP leaders used a procedural maneuver to block a Democratic amendment that would have provided additional funding for state and local first responders.
Effort to End Debate on Native Hawaiian Bill Fails in Senate
A vote to end debate and vote on the Native Hawaiian Government Reorganization Act (S. 147) failed in the Senate on June 8 by a vote of 56-41. The measure would have created a government-to-government relationship between the U.S. Government and a governing entity representing indigenous Native Hawaiians. S. 147 sought to provide Native Hawaiians with the same type of recognition currently enjoyed by American Indians and Alaskan Natives.
AFSCME represents hundreds of working Native Hawaiians and their families and supported the bill out of the belief that Native Hawaiians, as a distinct people, should be entitled to the same rights as other indigenous people in our nation. S. 147 would help improve the living conditions of Native Hawaiians by addressing longstanding issues, including the loss of land and the outright disruption of the cultural practices of Native Hawaiians.
Senate Finance Committee Passes Out Legislation to Reauthorize the Promoting of the Safe and Stable Families Program
On June 8, the Senate Finance Committee unanimously approved a bill, "The Improving Outcomes for Children Affected by Meth Act of 2006," which authorizes $345 million in mandatory funding for each of FY 2007-2011 for the Promoting Safe and Stable Families (PSSF) program, and continues PSSF's discretionary funding authorization of $200 million for each of these same years. The bill also requires that $40 million of the mandatory funds be reserved for grants to improve outcomes for children affected by methamphetamine abuse and addiction. In addition, this legislation reauthorizes and expands the mentoring of children of prisoners program. In his opening statement to the Committee, Sen. Baucus commended caseworkers in the foster care system for their dedication and hard work in helping vulnerable children.
FAA Bargaining Impasse Bill Narrowly Defeated
Legislation that would have forced the Federal Aviation Administration (FAA) back to the bargaining table with the National Air Traffic Controllers Association (NATCA) was brought to a vote under suspension of the rules requiring a two-thirds majority. The bill, H.R. 5449, introduced by Rep. Steve LaTourette (R-OH), was narrowly rejected by a vote of 271-148 (280 votes needed). The FAA imposed a contract on the controllers on June 5 and this bill would have retroactively removed the FAA's statutory authority to impose the contract. The impasse occurred when the FAA demanded $1.9 billion in contract concessions, and the NATCA only agreed to $1.4 billion. The President issued a veto threat against the bill. Final resolution of this matter could affect AFSCME-represented FAA employees.
AFSCME Council 75 Rallies Against Estate Tax Repeal
AFSCME leaders gathered outside of Sen. Gordon Smith's (R-OR) office last Thursday in Portland, Oregon to urge the senator to vote "no" on the repeal of the federal estate tax. The rightwing of the Republican Party has mounted a relentless campaign to repeal the estate tax, a move that would grant multi-million dollar tax breaks to the wealthy while pushing a larger tax burden on to middle class families and forcing cuts to vital public services. AFSCME's legislative advocacy paid off this week when estate tax repeal was defeated in the Senate.
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