AFSCME Legislative Report
AFSCME LEGISLATIVE REPORT
November 2, 2007
In this issue:
Senate GOP Leaders Block Progress on Children's Health Bill
On Thursday, the Senate voted 64-30 in favor of a compromise bill to renew the State Children's Health Insurance Program (SCHIP), the same bill that was approved by the House last week. However, the vote took place after Senate Minority Leader Mitch McConnell (R-KY) refused to delay the vote in order to give House and Senate negotiators need more time to reach agreement on additional changes that would win over enough House Republicans to override the veto promised by President Bush.
It is unclear what steps the proponents of the bill will take next. If negotiators believe that a strong bill can still be worked out, while also winning an additional dozen votes in the House, then another attempt may be made to put a bill on the President's desk with a veto-proof majority of support. If negotiators determine that they cannot win over enough new House Republican supporters, Democratic leaders may decide to extend the current program for several months. However, extending the current program will create a financial squeeze on many states that need more federal funding than the current program provides.
(Barbara Coufal- bcoufal@afscme.org)
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House and Senate Agreement Combines Spending Bills
On Thursday, House and Senate negotiators approved a conference report that combines the Fiscal Year 2008 spending bill for Labor-Health and Human Services (HHS)-Education with the spending bill for Military Construction and Veterans Affairs. The Labor-HHS-Education piece provides $9.8 billion more than President Bush's budget request, and includes important new investments for health care, Head Start, child care, Community Services Block Grant and K-12 and higher education. It reverses six years of cuts to these and other programs that fund state and local services.
The House will vote on the bill as early as Tuesday, November 6. President Bush has already said he will veto the bill, even though that means opposing improved health care for veterans. House leaders believe they are very close to a veto-proof majority. We are urging you to help us get there by calling your Representative starting on Monday, November 5th.
(Fran Bernstein- fbernstein@afscme.org)
You Can Help Ensure Adequate Funding for
State and Local Services!
Call your Representative toll-free at 1-888-460-0813 on November 5th or 6th.
Urge him or her to vote for the combined Labor-HHS-Education and Department of Veterans Affairs spending bills. Tell him or her that this bill provides additional funds for veterans' health care, Head Start, child care, job training, public education and other vital services for our communities. Tell him or her that if we can afford the war in Iraq, we can afford to make investments in vital services at home.
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Bipartisan House Majority Approves Major Worker Adjustment Legislation Covering Public Employees and Blocking Privatization; White House Veto Threatened
The House of Representatives voted 264-157 this week to approve the Trade and Globalization Assistance Act of 2007 (H.R. 3920). The legislation represents the largest expansion ever of programs assisting unemployed workers, including the Trade Adjustment Assistance (TAA) program and Unemployment Insurance program.
H.R. 3920 substantially expands assistance to workers adversely affected by trade policies and globalization. It broadens coverage to service sector and public sector employees for the first time. It also provides significant new resources for the state agencies that approve workers for the program, counsel and provide case management services to them, and refer them to training. Language blocking the Bush Administration's efforts to push states to privatize their Trade Adjustment Assistance programs also is included in the bill. Both this provision and the extension of the TAA program to public employees drew Republican attacks on the House floor just as they did during committee consideration of the bill last week.
H.R. 3920 also includes a major strengthening of the unemployment insurance program, making it easier for low wage and part-time workers to qualify for unemployment benefits and providing substantial additional resources for state unemployment insurance and employment services operations. The schedule for Senate action on the bill is unclear, but the White House has issued a veto threat of the House bill.
(Nanine Meiklejohn- nmeiklejohn@afscme.org)
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House Committee Reviews Administration's Medicaid Rules to Cut Medicaid Funding to State and Local Governments
On Thursday, the House Oversight and Government Reform Committee heard testimony on Bush Administration proposed Medicaid regulations which, if not stopped by Congress, would shift at least $11 billion in costs to state and local governments over the next five years. Chairman Henry Waxman (D-CA) warned that such deep cuts in the federal share of Medicaid would force states to make the difficult choice between raising taxes or slashing vital services to the 28 million infants and children, and the 10 million people with disabilities who rely on Medicaid services.
The six Bush Administration proposed rules seek to sharply limit supplemental Medicaid payments to public hospitals and other safety net providers; restrict coverage of rehabilitation services for Medicaid-eligible people with disabilities; eliminate Medicaid funding for transportation of severely disabled children to schools where they may receive Medicaid services; eliminate the ability of schools to provide administrative services, such as referrals for Medicaid children; restrict what states may cover as hospital outpatient services under their Medicaid programs; and, eliminate Medicaid support for graduate education at our nation's teaching hospitals.
AFSCME will continue to press Congress to halt the implementation of these regulations which will cut Medicaid funds to state and local governments, and to public safety net hospitals.
(Linda Bennett- lbennett@afscme.org)
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House Approves Seven-Year Extension of Moratorium on Internet Access Taxes
The House approved a bill to continue the current moratorium on taxing Internet access for seven more years. Although the House had earlier passed only a four-year extension, the Senate agreed to the seven year bill to stave off action on a permanent moratorium, which AFSCME opposed. House leaders decided to act quickly on the seven-year Senate bill rather than prolonging the debate since the existing moratorium was set to expire on November 1. The final bill changes the definition of Internet access to ensure a person's connection to the Internet remains tax-free, closes a loophole that had put state revenues at risk and continues the original grandfather clause that protects existing state revenues that are being collected in some states.
(Marc Granowitter- mgranowitter@afscme.org)
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Alternative Minimum Tax and Tax Extenders Passes House Ways & Means Committee
The House Ways and Means Committee approved Chairman Charles Rangel's (D-NY) $76.5 billion tax package (H.R. 3996), which extends relief from the Alternative Minimum Tax (AMT) to middle class families for one year. It also extends several individual and corporate tax deductions for one year. Rangel's revenue neutral package complies with House rules and contains revenue offsets that close corporate tax loopholes such as offshore deferred compensation and increase tax rates on "carried interest" (i.e. income of partners for performing investment management services).
H.R. 3996, the "Temporary Tax Relief Act of 2007", increases the AMT exemption to $66,250 for joint filers and to $44,350 for individuals. It extends many deductions for individuals, including up to $4,000 for tuition and education expenses and the deduction for state and local general sales taxes. It also lowers the income floor for the refundable child credit from about $11,000 to $8,500. It also repeals the Internal Revenue Service's (IRS) authority to contract with private collection agencies to collect federal income taxes. This provision is contained in a separate bill (H.R. 3056) which the House already passed 232–173. H.R. 3996 is expected to move to the House floor soon.
(Marc Granowitter-mgranowitter@afscme.org)
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House Committee Passes Bridge Reconstruction Bill
On October 31, the House Transportation and Infrastructure Committee passed the National Highway Bridge Reconstruction and Inspection Act of 2007 (H.R. 3999), which authorizes $2 billion for repairing bridges in FY 2008 and 2009. The bill requires states to inspect their structurally deficient or obsolete bridges once a year and all other bridges would be inspected every two years. State flexibility to transfer funds from this program to other surface transportation programs would be limited. Funding for the program would come from general fund revenues. The bill also provides training guidelines for bridge inspectors.
(Cynthia Bradley- cbradley@afscme.org)
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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/
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