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

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
November 21, 2008

In this issue:

* 111th Congress Begins to Organize
* As Economy Worsens, Senate Republican Leaders Again Derail Needed Economic Stimulus
* Auto Rescue Package Stalls
* Congress Sends Unemployment Benefits Extension to the President
* Bush Administration Weakens Family and Medical Leave

111th Congress Begins to Organize
Newly elected House and Senate members gathered for orientation sessions and party caucuses in Washington, D.C. as the 110th Congress came back for a post-election, "lame duck" session. Senate Democrats have gained seven seats so far for a 58-40 near filibuster-proof 60 vote majority. The race in Minnesota is still too close to call and Georgia is headed to a December 2 run off election. In the House, Democrats have gained at least 20 new seats and now hold a 255-175 majority with five seats yet to be called.

Elections for party offices in the new 111th Congress were held and House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Harry Reid (D-NV) and their teams were re-elected by their caucuses, with one small change. In the House, Democratic Caucus Vice Chairman John Larson (D-CT) replaces Rep. Rahm Emanuel (D-IL), who was tapped to be President-elect Obama's White House Chief of Staff, while Rep. Xavier Becerra (D-CA) replaces Larson as Vice Chairman. For House Republicans, Rep. John Boehner (R-OH) kept his post as the House Republican leader, turning back a weak challenge by conservative Rep. Dan Lungren (R-CA). Rep. Eric Cantor (R-VA), will be the Minority Whip, and Rep. Mike Pence (R-IN) will be Conference Chair. No Senate leadership changes for either party were reported.

In a rare challenge of committee seniority, Rep. Henry Waxman (D-CA) unseated John Dingell (D-MI), the long time chairman of the important Energy and Commerce Committee, with jurisdiction over energy, health care and telecommunications issues. The secret ballot vote was 137-122.
(Ed Jayne- [e-mail])

As Economy Worsens, Senate Republican Leaders Again Derail Needed Economic Stimulus
Since Congress considered but failed to enact an economic recovery bill in September, the economy has continued to worsen. The ongoing deterioration of tax revenues, rising unemployment and declining property values continue to be a toxic combination for state and local government budgets. States are projected to have budget gaps in 2010 totaling $100 billion. The rapidly worsening economy has escalated both the urgent need for and magnitude of federal support required to address the state fiscal crisis. On Wednesday, Mark Zandi, Chief Economist at Moody's Economy.com, told members of the Senate Budget Committee that "unless policymakers quickly implement a very large and effective fiscal stimulus plan, the economy appears headed for the worst downturn since the Great Depression." Zandi projected without a stimulus bill nearly five million jobs will be lost from the peak in employment at the start of 2008 to mid-2010, pushing the unemployment rate to over 10% by late 2010. He said that a fiscal stimulus of $400 billion, including $100 billion in state aid ($40 billion in federal support for state Medicaid programs and $60 billion in state aid grants) would make a real difference stemming job losses and state budget crisis.

Despite clear evidence that our economy needs a jump start and that states need fiscal relief, Senate Republican leaders again thwarted efforts to pass a broader economic stimulus that included funding for state Medicaid programs, infrastructure projects, restoration of funding for child support enforcement and more. The current obstructionist posture of Senate Republicans – who blocked a stimulus package in September – means we must press President-elect Obama and congressional leaders to enact such a plan next year.
(Linda Bennett- [e-mail])

Auto Rescue Package Stalls
The big three automakers (GM, Ford and Chrysler) testified before Congress this week and requested a $25 billion bridge loan to fund operating expenses. Without immediate federal assistance, the domestic auto industry could collapse and devastate the American economy with the potential loss of three million jobs. AFSCME supported legislation to carve out existing funds provided in the financial industry bailout to provide such a loan; however, differences over funding sources and the need for federal assistance derailed attempts to bring legislation to the floor for a vote. Compromise plans are in the works and may be considered if Congress returns in December.
(Andrea Zuniga Dibitetto- [e-mail])

Congress Sends Unemployment Benefits Extension to the President
With Senate Republicans blocking efforts by Senate Democrats to get a vote on an economic stimulus package and assistance to the auto industry, Senate Democrats moved, instead, to offer an extension of federal unemployment benefits. The measure (H.R. 6867) passed on a voice vote, and the President signed it into law.
The bill will provide an additional seven weeks of federal extended benefits in every state for a total of 20 weeks. Workers in high unemployment states – those with unemployment rates of 6% or more – will be eligible to receive a total of 33 weeks of federal benefits, which is the longest period of time ever provided in a federal extended benefits extension.

With the unemployment situation almost certain to continue deteriorating, we will be working to secure additional funding for state unemployment insurance operations and enactment early next year of an Unemployment Insurance Modernization Act that would provide financial incentives to states to make more low-wage, part-time and female workers eligible to receive benefits. The legislation, which passed the House but not the Senate this year, also would provide significant additional funding for state unemployment insurance and employment service operations.
(Nanine Meiklejohn- [e-mail])

Bush Administration Weakens Family and Medical Leave
As part of a rush of last minute Bush giveaways to business, the Department of Labor has finalized a new rule that will restrict workers' access to family and medical leave (FMLA). Currently, FMLA ensures that employees can take up to 12 weeks of unpaid leave each year to care for themselves or a family member without risking their jobs. This new rule shortens the period required for employees to request leave, lengthens the time for employers to respond to leave requests, and makes it more difficult for workers to use paid vacation time for FMLA leave. It also allows employees to speak directly to employees' health care providers, an unnecessary intrusion into employees' privacy.

The FMLA rule will take effect January 16 just four days before Bush leaves office. We will be working with the Obama administration to reverse these harmful changes.
(Becky Levin- [e-mail])

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