AFSCME LEGISLATIVE REPORT April 24, 2009

[Omaha Steve]

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

AFSCME LEGISLATIVE REPORT
April 24, 2009

In this issue:

* Budget Deal on Health Care Reform and Increased Spending Close at Hand
* Action on Health Care Reform Rapidly Approaching
* House Expands COPS Program
* House Subcommittee Hears Testimony on Implementation of Unemployment Insurance Provisions of Economic Recovery Act
* House Holds Second Hearing on 9/11 Health Bill
* Senate Hearing on Oversight of Economic Recovery Funds to State and Local Governments
* Economic Recovery Funds Continue to Flow to States and Localities

Budget Deal on Health Care Reform and Increased Spending Close at Hand
With pressure from President Obama mounting to get a deal on the budget before his 100-day anniversary on Wednesday, House and Senate negotiators reportedly have reached a tentative agreement on the fiscal year 2010 federal budget. The agreement is expected to include important "reconciliation" instructions, which would pave the way for action on health care reform this year without needing 60 votes to break a filibuster by Senate Republicans. The expected compromise also would allow the House and Senate Appropriations Committees to increase spending for many vital public service programs.

The use of reconciliation "fast track" procedures, even for an issue as important as health care reform, is still controversial. A potential stumbling block to a final deal is the reluctance of Senate Budget Committee Chairman Kent Conrad (D-ND) to support use of the procedure. He and a limited group of Democrats have indicated they are not fans of reconciliation. Nevertheless, Conrad said he is still open to an agreement that includes "fast track" procedures under certain circumstances. Senate Republicans have indicated they are strongly opposed to the process since it limits their power as a minority to derail legislation supported by the majority.

The original House-passed Budget Resolution included reconciliation instructions for health care and education reforms, but the Senate-approved plan did not. The other major difference is the House plan calls for a smaller reduction in spending for domestic priorities than what is called for in the Senate plan. The Senate resolution included $15 billion less than the $1.096 trillion requested by the Obama administration, while the House resolution allocated about $7 billion less than Obama's proposal. The tentative deal on a final plan would reportedly split the difference between the House and Senate plans, providing a $10 billion reduction, but still allowing a substantial increase in spending for domestic priorities.

Informal negotiations on a final deal are expected to continue over the weekend and a final deal could still fall apart, but if the process stays on track, a formal conference committee meeting would be held on Monday, April 27, and if agreement is reached it would allow for a final House and Senate vote by Wednesday.
(Ed Jayne- [e-mail])

Action on Health Care Reform Rapidly Approaching
A total of five congressional committees are involved in the shaping of health care reform. Together, the leaders of these committees have adopted an ambitious schedule to move health care reform legislation through each committee during June and early July and to put bills onto the floor of the House and Senate for debate before the August recess. After bills are approved in each chamber, leaders will begin the process of negotiating the final bill. In the Senate, the Finance and the Health, Education, Labor and Pensions committees plan to begin their health care debates in early June, working from similar draft bills. In the House, the three committees with jurisdiction are the committees on Energy and Commerce, Education and Labor, and Ways and Means. The chairs of these committees are working closely together to introduce a single bill for debate in each committee.

Leading up to the debates, the committees have been holding extensive hearings to sort through the issues. This week, the House held two hearings on health care reform, and the Senate Finance Committee held the first of three "roundtable" discussions. At a hearing on insurance market reforms, five of six witnesses expressed support for a public health insurance plan option to provide more consumer choice and competition with private health plans. At a hearing addressing ways to reduce the cost of health insurance, Chair Rob Andrews (D-NJ) said, "One key way to reduce costs in our health care system is to eliminate loopholes in the system that increases profits for insurers by shifting costs to hardworking Americans." Witnesses stressed the importance of guaranteeing adequate, affordable coverage for all Americans by lowering costs and ensuring that those with preexisting conditions are covered. And, at the Finance Committee roundtable, the discussion centered on delivery system reforms and the need to control costs and improve quality of care.
(Fran Bernstein- [e-mail] and Barbara Coufal- [e-mail])

House Expands COPS Program
On Thursday, the House passed the Community Oriented Policing Services (COPS) Improvement Act of 2009 (H.R. 1139) by a vote of 342-78. The bill provides $1.8 billion annually for FY 2009 through 2014 for the Cops on the Beat program. The program provides grants to state and local governments to hire additional law enforcement officers and prosecutors. The bill also authorizes up to $350 million a year for grants to obtain or upgrade technology and equipment. A similar bill (S. 167) is pending in the Senate.
(Andrea Zuniga DiBitetto- [e-mail])

House Subcommittee Hears Testimony on Implementation of Unemployment Insurance Provisions of Economic Recovery Act
The Labor Department, several state agency officials and other witnesses testified this week before a House Ways and Means Subcommittee on progress implementing the unemployment insurance (UI) provisions of the Economic Recovery Act, which several witnesses called the most significant reform of the UI system since its inception.

All states now are including the $25-per-week benefit increase in their UI payments and have received the $500 million in increased administrative funding. The Deputy Director of Iowa's Workforce Development Agency stressed the importance of the increased administrative funds in helping the states cope with the dramatic increase in applications for benefits.

Many states also are moving to adopt the UI reforms included in the UI modernization provisions in the American Recovery and Reinvestment Act (ARRA) in order to receive additional funds from the Federal Trust Fund to their state trust funds. Twelve states already have adopted some of the changes while state legislation has been introduced or is pending in one chamber or another in 18 states. Adoption of these reforms will help many low-wage, part-time and women workers qualify for benefits. In addition, the infusion of additional funds will improve the condition of state trust funds and help states avoid automatic employer tax increases that are triggered when trust fund balances decline.
(Nanine Meiklejohn- [e-mail])

House Holds Second Hearing on 9/11 Health Bill
Following the House Judiciary Committee's recent hearing, the House Energy and Commerce Committee's Subcommittee on Health held a hearing on Wednesday examining the James Zadroga 9/11 Health and Compensation Act (H.R. 847). The bill would create a health entitlement for screening and treatment and reopen the Victims' Compensation Fund (VCF) for responders and New York residents exposed to toxins released in the 9/11 attack. The subcommittee heard testimony from congressional sponsors, Reps. Carolyn Maloney (D-NY), Jerrold Nadler (D-NY), and Peter King (R-NY), in addition to a rescue worker and representatives of the City of New York, labor unions, and medical professionals directing the screening and treatment programs.
(Becky Levin- [e-mail])

Senate Hearing on Oversight of Economic Recovery Funds to State and Local Governments
This week, a Senate committee received testimony on state and local government spending of ARRA funding. The Government Accountability Office (GAO) witness testified that in the 16 states (plus Washington, D.C.) that the GAO is evaluating, $49 billion has been allocated for FY 2009, with 90% of these funds going to health, education or transportation. So far, these states have been allocated $17 billion in additional Medicaid funding. The National Governors Association witness testified that while the ARRA provides state and local governments with $280 billion in federal funding, states are still facing $300-$350 billion in budget shortfalls for the next three fiscal years. The National League of Cities' representative told the panel that local governments will receive $40-$60 billion in ARRA funding, which will prevent many cuts but is not sufficient to fill local governments' budget holes. The GAO recommended that state and local governments be allowed to use ARRA funds for ARRA-related management and audits. (Fran Bernstein- [e-mail])

Economic Recovery Funds Continue to Flow to States and Localities
All 50 states have created Web sites that track their use of their share of the federal economic stimulus package, and link to the federal Recovery.gov site.
The Department of Education announced that nearly $4 billion is now available for California under the ARRA's State Stabilization funding. California is the first state to be approved for the first round of this funding: http://www.ed.gov/news/pressreleases/2009/04/04172009.html. Guidance and fact sheets for the State Fiscal Stabilization Fund, K-12 Title I, special education (IDEA), Vocational Rehabilitation and Independent Living, as well as state allocations can be found at: http://www.ed.gov/policy/gen/leg/recovery/index.html. For more information, including state-specific tracking of ARRA education funds, see: http://www.ed.gov/policy/gen/leg/recovery/index.html and http://www.ed.gov/policy/gen/leg/recovery/reports.html.
The Department of Agriculture (USDA) announced that the USDA will be sending $84.8 million to state and local governments to improve water quality, increase water supply, decrease soil erosion, and improve fish and wildlife habitat in rural communities as part of ARRA. http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/04/0110.xml. For additional information on ARRA funds to state and local governments see:
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=ARRA_PLANS&parentnav=USDA_ARRA&navtype=RT

The Department of Health and Human Services (HHS) has posted Child Care and Development Fund allocations at: http://www.hhs.gov/recovery/programs/acf/childcare.html and guidance at:
http://www.acf.hhs.gov/programs/ccb/law/guidance/current/pi2009-03/pi2009-03.htm. Immunization grant allocations to states are at: http://www.hhs.gov/recovery/programs/cdc/immunizationgrant.html.

HHS also announced the availability of up to an additional $5 billion in emergency funding for states' Temporary Assistance for Needy Families (TANF) programs. This new Emergency Fund, established by the ARRA, will help states and counties serve more families seeking employment opportunities and other forms of assistance during the economic downturn. More information; State funding. Additional up-to-date information on HHS's dispersements of ARRA funds is at: http://www.hhs.gov/recovery/reports/index.html.
The Department of Housing and Urban Development's (HUD) ARRA funding to states and local governments is at: http://www.hud.gov/recovery/.

The Department of Labor (DOL) has issued a change to previous guidance for implementation of the Workforce Investment Act (WIA) and Wagner-Peyser Act Funding under the ARRA. The new guidance can be found at: http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2741. Additional ARRA implementation is available at: http://www.dol.gov/recovery/.

The Department of Transportation's (DOT) ARRA dispersements can be found at: http://www.dot.gov/recovery/reports.htm.

The Office of Management and Budget (OMB) published ARRA Implementing Guidance. This is the second installment of detailed government-wide guidance for carrying out programs and activities enacted in the Recovery Act. This updated guidance supplements, amends and clarifies the initial guidance issued by OMB on February 18, 2009 http://www.recovery.gov/?q=node/317.
(Fran Bernstein- [e-mail])

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