AFSCME Legislative Highlights

AFSCME LEGISLATIVE REPORT
September 22, 2006

In this issue:

Republican Hill Leaders Block Tax Relief for Middle Class & Minimum Wage Increase
With Congress' campaign recess looming, Republican leaders continue to hold hostage helpful tax breaks for the middle class and a minimum wage increase in a misguided attempt to enact their "Trifecta" bill, which guts the estate tax and would benefit multi-millionaires and billionaires. Senate Democratic Leader Harry Reid (D-NV) said, "American families and businesses are paying the price for this Republican Do-Nothing Congress' failure to extend these tax breaks. Millions of families are facing higher taxes today as a result of this failure."  Despite strong bipartisan support, Republican Senate Majority Leader Bill Frist (R-TN) vowed not to vote separately on any pieces in the Trifecta bill (minimum wage increase, tax extenders, estate tax). Frist's action blocks the tax relief below:

  • Tuition Deduction: Grants parents and students income tax deductions for qualified tuition and related expenses.
  • Teacher Classroom Expenses: Grants teachers above-the-line deductions of up to $250 for their personal spending on classroom supplies.
  • State and Local Sales Tax Deduction: Grants federal income tax deductions to individuals for their state and local sales taxes.
  • Work Opportunity Tax Credit and Welfare-to-Work Tax Credit: Incentives for employers to hire economically disadvantaged Americans to move them from welfare to work.
  • R&D Tax Credit: Incentives for business investment in research and development in the U.S.
  • New Market Tax Credit: Incentives for investment in economically underdeveloped areas.  Mental Health Parity: Requires group health plans to provide the same coverage for mental health benefits provided for medical and surgical health benefits.
    (Marc Granowitter- mgranowitter@afscme.org)

Senate Abandons Comprehensive Immigration Reform Bill
The Senate GOP leadership has abandoned, at least until after the November elections, efforts to negotiate a comprehensive immigration reform bill with the House. Rather than go to conference this summer with the Senate immigration overhaul bill (S. 2611) and an enforcement-oriented House measure (H.R. 4437), House Republican leaders chose to hold field hearings around the country and returned to Washington, D.C. determined to push forward with a narrow border security agenda before recessing September 29 to campaign for the midterm elections.

This forced the Senate to reconsider its approach and so the Senate voted, 94-0, on a procedural vote to limit debate and move to consider the House-passed border security bill (H.R. 6061). H.R. 6061 would authorize 700 miles of double-layered fencing along the U.S.-Mexico border – at an estimated cost of at least $3 million a mile – and a "virtual fence" of cameras, sensors and unmanned aerial vehicles along other portions of the border. That is nearly double the size of the fence approved by the Senate in May as part of its comprehensive immigration bill. A vote on this bill in the Senate is expected next week. If the Senate succeeds in passing H.R. 6061, it is likely that it would be attached to a conference report for the FY 2007 Homeland Security appropriations bill (H.R. 5441).
(Marge Allen- mallen@afscme.org)

Voter Photo ID Bill Passed in the House
Approved on a mostly party-line vote of 228-196, the House approved the so-called "Federal Election Integrity Act" (H.R. 4844) legislation that would require voters to show a photo ID in 2008 in federal elections, and in 2010 display an ID that also proves citizenship. H.R. 4844 imposes new and unnecessary barriers to vote in federal elections by establishing a single form of identification that proves citizenship before a person is allowed to vote. Amendments to the legislation were not allowed during consideration of the bill.

AFSCME joined 40 other organizations, sending a letter to the House in opposition to H.R. 4844. The letter urged House members to vote against the legislation because citizens should not have to pay to vote. Many U.S. citizens do not have proof of citizenship and cannot easily access this proof. Therefore, H.R. 4844 would encourage racial and ethnic discrimination at polling places and prevent many eligible voters across the country from participating in elections. Also, while voter fraud does exist, the type of fraud addressed in H.R. 4844, misrepresentation of one's identity, is rare.
(Cynthia Bradley- cbradley@afscme.org)

Congressional Briefing Held on Health Problems of Ground Zero Workers
On Wednesday, Reps. Carolyn Maloney (D-NY) and Vito Fossella (R-NY) held a briefing to educate House members and staff about the serious health problems that continue to be experienced by those who were involved in the rescue, recovery and cleanup operation after the attack on the World Trade Center. Maloney, Fossella, Sen. Hillary Clinton (D-NY) and others have urged the Bush Administration to get behind efforts to address the health care needs of the workers–some of which are AFSCME members–and also of residents and students of the area who are suffering from respiratory and other illnesses.
(Barbara Coufal- bcoufal@afscme.org)

House Committee Approves Ryan White Reauthorization Bill
The House Energy and Commerce Committee approved a five-year renewal of the Ryan White CARE Act by a vote of 38-10. The measure provides approximately $2 billion per year to states and cities for the treatment of people with HIV and AIDS. Debate on the bill focused on formula funding. The reauthorizing legislation would alter the formulas to distribute the grant money based on numbers of HIV patients instead of a state's number of full-blown AIDS cases. This change would result in large urban states, especially New York and California, losing money while rural states would receive more money. Amendments to extend from three to five years a "hold-harmless" period during which grants could not be reduced more than five percent from FY 2006, and to extend the current funding formula for one year were defeated. The bill could be considered on the House floor next week. The Senate Health, Education, Labor and Pensions Committee approved a bill earlier this year that would also alter formulas for distributing Ryan White funds in a similar way.
(Fran Bernstein- fbernstein@afscme.org)

Advocates Urge Congress to Take Action to Avert SCHIP Funding Shortfalls
A coalition of more than 80 groups, including AFSCME, has asked Congress to take immediate action to help states avert projected federal funding shortfalls in FY 2007 for the State Children's Health Insurance Program (SCHIP). The program, created in 1997 to help states provide health coverage for children, has reduced the number of uninsured children by one-third. However, up to 18 states face an estimated $800 million to $950 million in total funding shortfalls in 2007. Without additional federal funding to address these shortfalls, states may have to reduce their SCHIP enrollment, placing health insurance coverage for over 500,000 low-income children at risk. States may also be forced to enact harmful changes to their SCHIP programs, such as curtailing benefits, increasing beneficiary cost-sharing or reducing provider payments.
(Fran Bernstein- fbernstein@afscme.org)

Nominee to Head Transportation Department Testifies on Hill
Mary E. Peters, President Bush's nominee to head the Department of Transportation, appeared before the Commerce, Science and Transportation Committee on September 20. Peters was questioned about her views on highway funding, safety and congestion issues as well as foreign ownership of U.S. airlines and Amtrak. Known for her support of using private money to build and maintain public roads and highways, Peters once again spoke about the merits of privatizing the nation's transportation infrastructure.
(Cynthia Bradley- cbradley@afscme.org)

88% of New Medicare Drug Program Enrollees at Risk of Falling Into "Doughnut Hole"
Nearly seven million seniors and individuals with disabilities–88 percent of new drug plan enrollees–who purchased stand-alone prescription drug coverage are now at risk of falling into the "doughnut hole" of having to pay the full cost of their medications, according to a report released this week by Senior Democrats on the House Ways and Means Committee. "Folks in the prescription drug plan who have not hit the doughnut hole yet are in for a rude awakening" cautioned Ranking Member Charles B. Rangel (D-NY). "The doughnut hole is so big that millions will fall in and many will never come out. People are going to be angry when they show up to get their medications and are told they don't have coverage, even though they still pay their monthly premiums."  As Rep. Pete Stark (D-CA) noted, "the opportunity to purchase plans that fill the hole is a mirage. Beneficiaries are no more able to afford expensive, full-coverage plans than minimum wage Americans are able to afford a Mercedes. With insurance company profits up, it is clear that this program caters more to special interests than it does to seniors and people with disabilities."

Looking to a change of leadership after the mid-term elections in November, House Democrats have offered an alternative plan to fix the new prescription drug program. They propose to make the Medicare drug benefit simple, affordable, and reliable for senior citizens and people with disabilities. Medicare could be required to use its bargaining power to negotiate lower drug prices, and the savings would be used to fill the doughnut hole. The Democrats' plan would also waive the late enrollment penalty for millions of beneficiaries who are now locked out of coverage until 2007, and simplify the program by creating a Medicare-sponsored option.
(Fran Bernstein- fbernstein@afscme.org)

Drug Reimportation Included in Homeland Security Spending Bill
Supporters of drug reimportation were successful in attaching a provision to the Homeland Security spending bill that would allow seniors to personally transport up to a 90-day supply of legal drugs over the border from Canada. It would continue to prohibit Internet purchases. The bill is expected to be voted on next week.
(Diane Burke- dburke@afscme.org)

U.S. Health Care System Fails to Make the Grade
In a report compiled by the nonpartisan Commonwealth Fund, a "scorecard" of our nation's health care system gives the U.S. an average of 66 out of a possible 100 on a series of health quality measures, with shortcomings costing as many as 150,000 lives and $100 billion annually. The U.S. was not a top scorer in any of the 37 national indicators of health outcomes, quality, access, equity and efficiency despite the fact that Americans spend more on their medical care than citizens in Germany, Canada, France, Australia, or the United Kingdom. The U.S. ranks 15 out of 19 countries in deaths potentially preventable with timely and effective medical care, and it scored a 67 on access due to our country's high uninsured rate and the fact that one-third of adults under age 65 have problems paying their medical bills or have medical debt they are paying off. The U.S. scored a 51 on efficiency, in part because of high insurance administrative costs. "We have very high overhead costs to run our insurance system," stated Cathy Schoen, Commonwealth Fund Senior Vice President.
(Fran Bernstein- fbernstein@afscme.org)

Real ID Act Implementation Will Cost States More Than $11 Billion
An analysis of the consequences and costs of implementing the federal Real ID Act revealed a cost to states of more than $11 billion over five years. The report, which reflects findings from a survey conducted by the National Governors Association (NGA), National Conference of State Legislatures (NCSL), and the American Association of Motor Vehicle Administrators (AAMVA), was released this week.

The federal Real ID Act creates national standards for using state driver's licenses and identification cards. Among the likely new costly requirements created by the act are re-issuance of drivers licenses and identification cards to all 245 million current holders within five years, establishing on-site identification procedures where the cards are issued, and meeting specific security and production requirements for the new card. Detailed data provided by the 47 jurisdictions that responded to the survey indicated that among the cost of the changes to the driver's licensing process are a one-time calculable expense of nearly $1 billion and ongoing costs of more than $10 billion for the first five-year enrollment period.

The report outlined several recommendations to the federal government, including extending the compliance deadline, providing states with the funds needed for states to comply with Real ID, providing federal electronic verification systems necessary to comply with the law, and implementing a 10-year re-enrollment schedule. While states want to make driver's licenses as secure as possible, "the $11 billion question is, "Who's going to pay for it?" asked NCSL Executive Director William T. Pound.
(Fran Bernstein- fbernstein@afscme.org)

AFSCME Council 4 Urges Congress to Stop Ducking Responsibilities
AFSCME Connecticut members and the Emergency Campaign for America's Priorities (ECAP) held a press conference in Bridgeport, CT to demand that Congress stop "ducking" their responsibilities and vote for critical funding before leaving for the campaign cycle. AFSCME was joined by over 60 activists holding orange wooden ducks to illustrate their point. Activists included other labor groups and the Connecticut Citizen Action Groups.
(Jessica Weinstein- jweinstein@afscme.org)

Click here to join the AFSCME e-Activist Network.

AFSCME Department of Legislation
Phone: 202/429-5020 or 800/732-8120
Fax: 202/223-3413
E-mail:
legislation@afscme.org
Website: http://www.afscme.org/action/index.html
Produced by Union Labor

Return to Index


Click here to join the AFSCME e-Activist Network.

AFSCME Department of Legislation
Phone: 202/429-5020 or 800/732-8120
Fax: 202/223-3413
E-mail:
legislation@afscme.org
Website: http://www.afscme.org/action/index.html
Produced by Union Labor

 

AFSCME WV Council 77, AFL-CIO
501 Leon Sullivan Way, 1st Floor
Charleston, WV 25301
 

(304) 342-2114
Fax (304) 342-2441
Council77@aol.com