AFSCME LEGISLATIVE REPORT May 2, 2008

[Omaha Steve]

In this issue:

* Promise of Presidential Veto Kills Anti-Privatization Provision in Farm Bill
* States' Budget Deficits Grow
* Genetic Discrimination Bill Moves to President's Desk
* Senate Begins Debate on FAA Bill
* Bipartisan Senate Support for Key HUD Programs – Public Housing and Community Development Block Grant
* The REAL ID Act, A Real Burden for States
* GAO Report Finds Health Savings Accounts Benefit Wealthy Over Average Americans

Promise of Presidential Veto Kills Anti-Privatization Provision in Farm Bill
In a major disappointment to AFSCME, an anti-privatization provision in the House farm bill was excluded from the final bill during negotiations between the House and Senate. After President Bush made clear that he would veto the bill over the provision, a majority of the Senate members of the conference committee, including one Democrat – Kent Conrad (ND), voted against the provision that would have prevented the Administration from allowing states to privatize the food stamp program.

The debate over this provision was lengthy and contentious. The House Democrats on the committee all voted to include the provision in the final bill. Those who strenuously argued in favor of the anti-privatization measure, and on AFSCME's behalf, included Reps. Joe Baca (D-CA), David Scott (D-GA) , Dennis Cardozo (D-CA) and Rosa DeLauro (D-CT). During the debate, Rep. DeLauro, who chairs the Appropriations Agriculture Subcommittee, stated that she would explore other options in her Subcommittee to rein in the Bush Administration's campaign to privatize the food stamp program.

Following the change in congressional leadership after the 2006 elections, this legislative effort was the first major campaign by AFSCME to roll back privatization. The failure to win this fight underscores the need to elect a President and additional members of Congress who will work with AFSCME to curb the drive to privatize.
(Nanine Meiklejohn- [e-mail])

States' Budget Deficits Grow
A declining economy is pushing state tax revenues down, and 31 states are now facing budget shortfalls. For fiscal year 2009 states will face a combined total of at least $40 billion in deficits. This will lead to painful cuts at a time when demand for public services and Medicaid is increasing. Congress must act to protect Medicaid and provide relief to states. H.R. 5268 would support Medicaid coverage and help states in fiscal crisis by providing $13 billion in new temporary federal funding for Medicaid. S. 2819 would support Medicaid coverage by blocking recent Medicaid regulations that cut federal payments to states and by providing $12 billion in temporary relief to states that meet criteria of economic stress. Both bills are gaining support but need more co-sponsors.
(Linda Bennett- [e-mail])

Urge Congress to Act Now to Save Public Services

Please call the Capitol switchboard at 1-888-460-0813 and
ask to speak to your Senators and Representative.

Tell them your state, cities, and counties are suffering painful budget problems, and that Congress needs to act now. Urge them to support a temporary increase in federal funding for your state's Medicaid program and for flexible grants to states and local governments. Let them know you are a member of AFSCME and oppose federal budget cuts that reduce public services or hurt government workers.

Urge your Representative to co-sponsor H.R. 5628
and your Senators to co-sponsor S. 2819.

Genetic Discrimination Bill Moves to President's Desk
The House voted 414 to 1 for legislation (H.R. 493) to protect individuals from discrimination in health insurance coverage and employment based on genetic information. The vote, which follows the Senate's adoption of the bill last week, puts a decade-long effort to ban discrimination based on one's genetic information on a final path to changing the law. The President is expected to sign the bill which would prevent health insurers from canceling, denying, refusing to renew or changing the terms or premiums of coverage based solely on a genetic predisposition toward a specific disease. State and local government health plans would be covered as well as Medigap insurance used by many retirees. The prohibition against employment discrimination would protect state and private sector employees.
(Linda Bennett- [e-mail])

Senate Begins Debate on FAA Bill
Two Senate committees have broken their deadlock over financing upgrades to the nation's air traffic control system, clearing the way for a long-delayed Federal Aviation Administration (FAA) reauthorization bill (H.R. 2881) to come to the Senate floor. The legislation would reform the FAA Personnel Management System. Presently, the FAA can impose work rules when contract negotiations fail. H.R. 2881 provides for binding arbitration by a panel of impartial decision-makers, bringing basic fairness to the flawed labor-management relations process at the FAA. The House has already approved the bill. Unfortunately, President Bush has threatened to veto the legislation, citing the proposed collective bargaining changes as one reason for the veto threat.
(Cynthia Bradley- [e-mail])

Bipartisan Senate Support for Key HUD Programs – Public Housing and Community Development Block Grant
On April 24, Sens. Charles Schumer (D-NY) and Olympia Snowe (R-ME) released a bipartisan letter requesting increased FY 2009 funding of $5.3 billion for the Public Housing Operating Fund and $3.5 billion for the Public Housing Capital Fund. The letter states that President Bush's proposed FY 2009 budget "underfunds the Operating Fund by an astonishing $1 billion, based on HUD's projection of need" and would fund only 81% of local public housing authorities' funding needs. The letter notes, "(t)his funding shortfall will force public housing authorities to make huge cuts in their operations including staffing and inspections, and result in a decreased quality of life for residents of public housing."

On April 25, Sens. Patrick Leahy (D-VT) and Norm Coleman (R-MN) released a bipartisan letter requesting increased FY 2009 funding of $4.1 billion for Community Development Block Grant (CDBG) formula funds to cities and counties. The letter highlights that CDBG is "one of the most effective federal domestic programs to revitalize communities with proven results" and that President Bush's proposed FY 2009 budget "would reduce the formula funding by another 18%, cutting the formula allocation by almost 37% in just five years." In addition to Sens. Leahy and Coleman, 61 senators cosigned the letter.
(Marc Granowitter– [e-mail])

The REAL ID Act, A Real Burden for States
On Tuesday, a Senate committee reviewed the impact of implementing the REAL ID Act which requires states to adopt federal standards for state-issued driver's licenses and identification cards. If a state fails to comply by 2010, the federal government will not accept these documents for federal purposes such as boarding an airplane or entering a federal building. Numerous states, many of which are facing budget deficits, expressed concern with the unfunded mandate estimated to cost states $4 billion. Privacy concerns and database security were also discussed.
(Andrea Zuniga DiBitetto- [e-mail])

GAO Report Finds Health Savings Accounts (HSA) Benefit Wealthy Over Average Americans
In a report released this week, the Government Accountability Office (GAO) found that health savings accounts are functioning more as a tax shelter for wealthy enrollees than as a solution to the problems of spiraling health care costs and lack of coverage facing average Americans. The report found that for nonelderly adults in 2005, the average income for tax filers using HSAs was $139,000, compared with $57,000 for all other filers. "This report provides further evidence that we need to reexamine whether this is the right way to use the Government's resources to address our health care needs," noted Rep. Henry Waxman (D-CA) who, along with Rep. Pete Stark (D-CA), requested the GAO study.
(Fran Bernstein- [e-mail])

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AFSCME Department of Legislation
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