AFSCME Federal Legislative Report February 8, 2008

[Omaha Steve]

Below are the top stories of the week from Capitol Hill.

AFSCME LEGISLATIVE REPORT
February 8, 2008

In this issue:

* Congress Clears Stimulus Bill
* Final Bush Budget Means Cuts to AFSCME Member Jobs
* Sen. Rockefeller Introduces Bill to Increase Federal Share of Medicaid and Address State Fiscal Relief
* The College Opportunity and Affordability Act
* House Passes Mental Health Parity Extension

Congress Clears Stimulus Bill
With strong bipartisan support, both the House and Senate gave final approval to an economic stimulus plan that they hope will jump-start the sagging economy. President Bush is expected to sign it. By a vote of 81-16, the Senate approved a slightly larger and revised $152 billion economic stimulus bill (H.R. 5140) that expanded tax rebates beyond what was provided in the original House-passed bill. The final Senate version, which was quickly approved by the House on a vote of 380-34, extends tax rebates to low-income senior citizens, disabled veterans and widows of veterans. A more ambitious Democratic-led plan that included an extension of unemployment benefits and low-income home heating assistance was defeated when a procedural motion to limit debate failed 58-41 (60 votes were needed). It actually had 59 votes, one short of the 60 needed, but Senate Majority Leader Harry Reid (D-NV) switched his vote to "no" at the last minute to preserve the procedural right to revisit the matter at a later time.

The final bill includes rebate checks for individuals and investment incentives for businesses. It provides $600 payments for individuals - $1,200 for couples - plus $300 for each child under age 17. It would begin to phase out eligibility at $75,000 in adjusted gross income for individuals and $150,000 for couples. Workers who can show $3,000 in earned income last year - not enough to pay taxes - would be eligible for payments of $300. Checks for $300 would be provided to seniors, disabled veterans and veterans' widows who can show $3,000 in Social Security or veterans' disability benefits last year. In all, the tax checks will cost the Treasury $105.7 billion, all of it added to the budget deficit.

Missing from the package was any assistance to ailing state and local governments. An amendment by Sen. Jay Rockefeller (D-WV) to provide states with $12 billion in new aid split between an increase in federal payments to states for Medicaid and a flexible state grant was filed but never voted upon.
(Ed Jayne- [email protected])

Final Bush Budget Means Cuts to AFSCME Member Jobs
On February 4, President Bush released his record-setting $3.1 trillion budget for FY 2009, which seeks to preserve the Bush budget legacy of red ink and wrong priorities. It supports making permanent his 2001 and 2003 tax breaks that benefit the wealthy one percent and calls for a sizable increase in military spending. And, it leaves behind a mound of debt as it projects a near-record $407 billion deficit in 2009 after squandering the surplus left to him when he took office.

The Bush budget also calls for significant cuts in services upon which working families rely and which many AFSCME members provide. His budget would make a staggering $19 billion in cuts (adjusted for inflation) in grants to states and local governments and drastic cuts to essential public services like education, health care, employment services, transportation, housing, and especially Medicare and Medicaid. The Bush budget is based on unrealistic "rosy" assumptions about future economic growth and omits the full cost of the Iraqi war and tax breaks. If implemented, there is little doubt the Bush budget would result in a significant loss of AFSCME member jobs. AFSCME will fight for the rejection of the President's budget and in favor of a more balanced approach to funding priorities and providing resources for vital services.

Attached is a copy of a more detailed analysis of the Bush budget. To send a message to your members of Congress in opposition to the budget please follow this link: www.unionvoice.org/campaign/reject
(Ed Jayne- [email protected])

Sen. Rockefeller Introduces Bill to Increase Federal Share of Medicaid and Address State Fiscal Relief
Sen. John D. Rockefeller (D-WV) introduced the State Fiscal Relief Act of 2008 (S. 2586) to provide $12 billion in state aid, equally divided between an increase in the federal share of Medicaid payments and general revenue sharing grants to states through March 2009. The bill builds upon the state fiscal relief model passed by Congress and signed into law by President Bush in 2003. It would provide needed temporary and targeted economic stimulus to states and local governments, which are a significant part of our national economic engine. With at least half of the states already facing budget shortfalls in FY 2009, an increase in the federal share of Medicaid funding will provide states with immediate fiscal relief and ensure the continuation of health insurance coverage to children and low-income families. AFSCME is pressing for the enactment of this legislative proposal.
(Linda Bennett- [email protected])

The College Opportunity and Affordability Act
This week, the House passed the College Opportunity Affordability Act of 2007 (H.R. 4137), which reauthorizes the Higher Education Act. The bill makes important strides in reforming and strengthening our nation's higher education programs and will help make college more affordable and accessible to America's students and their families.

H.R. 4137 provides an important incentive to embark on a career of public service, providing a loan forgiveness program for up to $10,000 for employees in areas of "national need." These include early childhood education, child welfare, public health and public safety. Further, the bill includes an important provision to direct guaranty agencies which in various states employ AFSCME members to develop financial literacy programs to prevent loan delinquencies and avert defaults.

Rep. Thomas Petri (R-WI) offered an amendment on the House floor, which passed, to strip out a provision unanimously adopted by the Education and Labor Committee, which called for a report on the Federal Direct Loan (DL) Program. It will deprive the Congress of needed information about the DL program and add new layers of redundant, costly audits on student loan guarantors. It does nothing to make college more affordable for students and working families. AFSCME will work with conferees to strike this amendment in conference.
(Becky Levin- [email protected])

House Passes Mental Health Parity Extension
On Thursday the House approved legislation (H.R. 4848) that would extend the mental health parity law for one year, through the end of 2008. Current law prohibits group insurance plans from imposing higher annual and lifetime dollar limits for mental health treatment than is imposed on other illnesses, but also allows state and local self-funded plans to opt out of even these requirements. The House and Senate continue to try to hammer out differences between their respective broader bills to address significant coverage inequities between health insurance coverage for mental health and other medical conditions.
(Linda Bennett- [email protected])

Attachment

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AFSCME Department of Legislation
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E-mail: [email protected]
Website: http://www.afscme.org/
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