AFSCME LEGISLATIVE REPORT July 25, 2008

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
July 25, 2008

In this issue:

* President McEntee Presses for Aid to Ailing States at House Hearing
* House Passes Housing Foreclosure Prevention Bill
* Federal Minimum Wage Increases to $6.55
* House Approves Highway Funding Bill
* House Blocks Efforts to Limit Federal Support for Medicare
* AFSCME Congressional Scorecard for 110th Congress, 1st Session, 2007


President McEntee Presses for Aid to Ailing States at House Hearing

On July 22, AFSCME President Gerald W. McEntee testified before the House Energy and Commerce Subcommittee on Health, calling for Congress to address the growing state budget crisis through an increase in federal support for state Medicaid programs. During the packed hearing, the Subcommittee heard how state budgets are under severe stress, with revenues plummeting and the demand for health care and other services rising. When states cut Medicaid, other public services, and aid to local governments to balance their budgets, it hurts individuals, communities and the economy. In 2003, Congress provided states with a $10 billion increase in federal funds for Medicaid and $10 billion in other grants. H.R. 5268, a bipartisan bill introduced by Reps. Frank Pallone (D-NJ), Peter King (R-NY), John Dingell (D-MI) and Thomas Reynolds (R-NY), would provide states with an increase in federal support for Medicaid, help stimulate state economies and prevent cuts in health care programs. AFSCME is pressing Congress to include such state relief in a second stimulus bill which may be considered in September. (Linda Bennett – [e-mail])


House Passes Housing Foreclosure Prevention Bill

On July 23, the House voted 272-152, with three Democrats opposed and 45 Republicans supporting, to approve a much needed comprehensive housing package (H.R. 3221) to address the subprime mortgage foreclosure crisis. The final bill, resulting from compromises among the House, Senate and Administration, provides relief for at-risk homeowners through Federal Housing Administration (FHA)-insured refinancing, increased FHA loan limits and other FHA reforms, a new strong regulator for Freddie Mac and Fannie Mae, and $3.9 billion to states and localities for a neighborhood stabilization fund to buy abandoned and foreclosed homes and residential properties. Although President Bush had threatened to veto the package for several weeks in specific opposition to the grant funding to states and localities, he withdrew his threat. The Senate is expected to approve this bill soon and President Bush is expected to sign it into law. (Marc Granowitter – [e-mail])


Federal Minimum Wage Increases to $6.55

On July 24, the second part of the multi-stage federal minimum wage increase took effect, raising the wage from $5.85 to $6.55 per hour. Despite the increase, the federal minimum wage remains lower than the minimum wage in 23 states and the District of Columbia. The next increase will take effect next summer. (Andrea Zuniga DiBitetto – [e-mail])


House Approves Highway Funding Bill

Under the threat of a veto by President Bush, the House approved legislation (H.R. 6532) that would transfer $8 billion from the federal government's general fund to the Highway Trust Fund. The measure was approved by a vote of 387-37 on July 22, exceeding the two-thirds margin needed to override a presidential veto. Supporters of the bill argue that as Americans spend less money on gasoline, less money is deposited into the highway trust fund, jeopardizing the completion of hundreds of highway projects and threatening the jobs of transportation workers across the country. Senate Majority Leader Harry Reid (D-NV) has indicated that the Senate will move the bill before the end of the year. (Cynthia Bradley – [e-mail])

House Blocks Efforts to Limit Federal Support for Medicare

As part of the Medicare Modernization Act passed in 2003, Republicans put in a stealth plan to limit federal government support for funding Medicare. Under that law, Congress would have to fast-track a proposal by President Bush to roll back the federal government's funding, when general revenues exceed 45% of Medicare costs. Putting a cap on the federal government's contribution would likely lead to cuts in benefits or shift the additional costs onto beneficiaries, or increase payroll taxes, or a combination of all three. By a vote of 231-184 the House approved a resolution (H.Res.1368) to halt consideration of shifting costs for financing Medicare onto beneficiaries. (Linda Bennett – [e-mail])


AFSCME Congressional Scorecard for 110th Congress, 1st Session, 2007

It is important for AFSCME members to hold elected officials accountable. Every year, we track several key votes on issues from health care to taxes and publish the results in the AFSCME Congressional Scorecard. Find out how your U.S. senators and representative voted on key issues, and see whether they are on our side.


Please go to our website to view – http://www.afscme.org/legislation-politics/19812.cfm

Click here to join the AFSCME e-Activist Network: http://www.unionvoice.org/afscme/join.html

AFSCME Department of Legislation
Phone: [phone] or 800/732-8120
Fax: [phone]
E-mail: [e-mail]
Website: http://www.afscme.org/
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