Legislation & Politics

Week Ending June 20, 2008

Congress – The Week of June 16, 2008


House subcommittee approves Labor, Health, and Education funding bill. House passes Emergency Supplemental funding bill with AFSCME-supported provisions.

House Subcommittee Approves Labor, Health, Education Funding Bill

A House Appropriations subcommittee approved the Fiscal Year 2009 spending bill for programs funded through the Departments of Labor, Health and Human Services and Education. However, President Bush has threatened to veto the bill because it exceeds his budget request by nearly $8 billion. As a result, there is a strong likelihood that Congress will not finish action on this bill or other domestic spending bills this year due to similar veto threats.

The $626 billion spending bill was approved by voice vote. The measure rejects the harmful Bush budget spending cuts and provides some limited increases in a number of areas. Overall, it provides $153 billion in annually-approved spending for the three departments plus some independent agencies.

In particular, the subcommittee rejected the Administration's request to eliminate funding for Wagner-Peyser Employment Service grants and, instead, approved a continuation of the current funding. Workforce Investment Act (WIA) funding also is maintained at current levels. In addition, a $40 million increase was provided to help unemployed workers obtain new job skills, including $22.5 million of which is to implement "green jobs" legislation approved last year. State grants for administering the unemployment insurance program is increased by $172 million to handle the increase in unemployment claims and avoid a repeat of the funding shortfall that developed this year. The subcommittee rejected Bush's proposed $760 million Social Services Block Grant cut, instead providing level funding of $1.7 billion for FY 2009. And, the subcommittee provided a $46 million funding boost for the Community Services Block Grant, rejecting President Bush's proposed elimination of this funding which supports community-based services for 16 million people. The bill includes a $242 million increase in funding for Head Start and a $50 million in funding for the Child Care and Development Block Grant. The bill would provide $370 million for programs to fight pandemic flu, and includes $108 million for 9/11 workers screening and treatment.

The full House Appropriations Committee is expected to approve the bill next week, and the Senate will begin its consideration of the bill. 

House Passes Emergency Supplemental Funding Bill with AFSCME-Supported Provisions

The House voted overwhelmingly 416-12 to include AFSCME-supported domestic provisions in a bill (H.R. 2642) to provide additional funds for the wars in Iraq and Afghanistan. Backing off a threatened veto, the White House and Republican leadership agreed to urgently needed vital investments of federal funding to states. The AFSCME-supported provisions which remain in the bill include: an expanded GI bill for veterans; an extension of unemployment insurance (UI) providing an additional 13 weeks of benefits; $110 million to close a current funding shortfall in the UI program; and urgently needed relief for victims of flooding in the Midwest. The bill also blocks six Administration-proposed Medicaid regulations which would impose drastic cuts in federal funding to states. A seventh regulation, cutting payments for outpatient hospital services, was not stopped by the bill. Senate Republicans Block Tax Bill

On June 17, the Senate voted 52-44, along party lines, to reject ending debate and start considering tax legislation recently passed by the House, which contains numerous expiring tax provisions affecting individuals and businesses and a package of renewable-energy provisions. To proceed, Democrats need another four Republican votes. The $55.5 billion revenue-neutral bill (H.R 6049) includes several provisions of importance to AFSCME, including reinstatement of the tax exclusion for group legal services plans, a new tax credit for energy conservation bonds, deduction for domestic production activities in Puerto Rico, and expansion of the refundable Child Tax Credit.

Senate Finance Committee Chairman Max Baucus (D-MT) plans to introduce a substitute bill, which would add $3.3 billion in aid for rural counties with significant amounts of federal land, which would benefit Oregon, Washington, and other states. The Child Tax Credit in the Baucus substitute is less generous than the House-passed version because it only includes taxpayers earning above $10,000 per year. Sen. Baucus offsets part of the cost of this bill by reducing corporate tax breaks. 

Bush Threatens to Veto Housing Foreclosure Bill

On June 19, the Bush Administration issued a veto threat against a new Senate bipartisan compromise that would address America's housing foreclosure and subprime mortgage crises. The bill (S. 3221) greatly expands the Federal Housing Administration's insurance programs to help strapped borrowers refinance mortgages. The compromise also contains $4 billion in community development block grants to help states and local governments purchase and rehabilitate foreclosed homes. The White House repeated its strong opposition to this assistance to states and localities.

House Subcommittee Approves Civilian Pay Raise

A House Appropriations subcommittee approved a 3.9% pay raise for federal civilian employees as part of the FY 2009 spending bill. This increase, which would go into effect next year, is 1% higher than the increase proposed by the Bush Administration and equal to the pay raise military personnel received in the Defense Department authorization bill. The full committee will consider the pay raise next week. 

House Passes Paid Parental Leave

On June 19, the House passed the Federal Employees Paid Parental Leave Act (H.R. 5781) by a vote of 278 to 146. The bill provides four weeks of paid leave to federal employees for the birth or adoption of a child. President Bush has already issued a veto threat. AFSCME will continue to support H.R. 5781 and fight to secure this benefit for federal employees in the hopes that it will one day be available to all working families. 

State Survey Finds State Budgets Among the Worst in Three Decades

A field survey conducted by the National Governors Association and National Association of State Budget Officers depicts dire times, with states responding to a weakening economy and declining revenues with across-the-board spending cuts, layoffs, hiring freezes and other cuts. According to the report, state general fund spending for FY 2009, which begins on July 1 for most states, will be one of the lowest in three decades. States are struggling now to fund services for the common good but the full force of the current downturn will continue to be felt in the next few years. AFSCME is urging Congress to invest in state economies through an increase in federal Medicaid payments to states and other state aid. Additional federal Medicaid funds would reduce the pressure on states to cut health and other public services. In 2003, a similar temporary package of increased Medicaid funds to states and grants helped revive state economies, supported community hospitals and protected the health and well-being of millions of citizens.   

House Panels Advances Civil Rights Legislation for the Disabled

This week, the House Judiciary Committee and Education and Labor Committee approved major civil rights legislation on behalf of the disability community. The Americans with Disabilities (ADA) Restoration Act (H.R. 3195) clarifies the definition of "disabled" to include any person who has, or is perceived to have, mental or physical impairments that restrict major functions and is thus entitled to protections under the Americans with Disabilities Act. H.R. 3195 is in response to recent U.S. Supreme Court decisions that narrowly defined ADA provisions. Republican Tom Price of Georgia was the only member of either committee to vote against the bill. 

House Approves Airport Employee Screening Legislation

The House approved legislation (H.R. 5982) that requires the Department of Homeland Security to study using biometric identification systems for employees who work beyond airport security checkpoints. AFSCME represents airport employees who enter and leave secure sections of the airport on a regular basis. This legislation would make it easier for these employees to be identified as they pass through secure areas performing their jobs while avoiding standing in passenger lines.

Short Term FAA Extension in Negotiations

Congress is considering another short-term extension of the Federal Aviation Administration (FAA) reauthorization. The Senate Finance Committee and Commerce, Science and Transportation Committee are negotiating the details of another extension, possibly to run through September. The current short-term extension expires on June 30.

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