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AFSCME

 

AFSCME FEDERAL LEGISLATIVE REPORT

 

  • House Debates Fast Track and Other Trade-Related Bills; Results are Inconclusive
  • Sen. Warren Proposes Comprehensive Plan to Make College Affordable
  • House Approves Inadequate Funds for Transportation and Housing
  • House Approves Permanent Ban on State and Local Government Taxation of Internet Access
  • House Workforce Protections Subcommittee Contemplates Changes to Fair Labor Standards Act Regulations

 

 

House Debates Fast Track and Other Trade-Related Bills; Results are Inconclusive

On Friday, the House debated Trade Promotion Authority, or fast track legislation, and a bill to renew the Trade Adjustment Assistance (TAA) program.  The TAA renewal bill, which was opposed by AFSCME and the broader labor movement, was defeated by a wide margin of 126 to 302.  The fast track bill, also opposed by AFSCME and labor broadly, was approved by the very narrow margin of 219 to 211.  Because the fast track bill was combined in the Senate with TAA, it cannot be sent to the President for his signature.  Therefore, it appears that the House Republican leadership plans to hold another vote on TAA next week.       

AFSCME has long supported the Trade Adjustment Assistance program.  But this version of TAA was deeply flawed.  First and foremost, the bill failed to cover public sector workers at risk of losing their jobs as a consequence of trade agreements.  More and more, trade agreements are aimed at opening up public services to privatization by global firms.  Given the increased risk to public employees, it is indefensible that the TAA bill excludes public workers.  The TAA bill was also greatly underfunded, especially given the size of the Trans-Pacific Partnership (TPP) trade agreement that the administration hopes to conclude in the next couple months.  The bill also included a cut in Medicare in order to pay for the cost of TAA.  We cannot afford to allow Medicare to be raided to pay for programs that do not support health care for seniors. 

The bottom line is that the fight over fast track and this version of TAA is not over.  We succeeded this week in blocking progress on the bill.  But, the challenge of defeating fast track and this TAA bill continues next week. 

Sen. Warren Proposes Comprehensive Plan to Make College Affordable

This week Sen. Elizabeth Warren (D-MA) proposed a comprehensive framework for making college affordable. The Senate Health, Education, Labor and Pensions Committee has been holding hearings to prepare to update the Higher Education Act later this year and considering issues including college affordability.  In response to the crisis of $1.3 trillion in total student debt, Warren's proposal calls for streamlined measures to access student loans, increase investments in higher education at the state and federal levels, and accountability requirement for colleges to keep costs down.  These would include simplifying financial aid, allowing students to refinance student loans, requiring colleges to share in the risk of student loans, rewarding colleges that keep costs down, requiring colleges to focus resources on education rather than other expenses, and penalizing colleges and student loan servicers that break the law and cheat students. AFSCME strongly supports efforts to improve access to college and make it more affordable. 

House Approves Inadequate Funds for Transportation and Housing

The House voted 216 to 210 largely on party lines to narrowly approve a Republican leadership spending bill, which underfunds housing and transportation services and infrastructure for the next fiscal year beginning October 1.  The bill’s total funding is nearly $10 billion below President Obama’s budget request.  AFSCME opposes this bill (H.R. 2577) because its overall funding level is too low and it cuts funding for key AFSCME priorities in public housing, community development, and transportation.  Only three House Democrats voted to approve the bill, and 31 Republicans voted against their leadership to reject the bill.

More specifically, the bill underfunds Public Housing Operating Fund at a flat-funded $4.4 billion, which funds public housing authorities (PHAs) at less than 85% of their needed operating budgets.  The bill cuts the Public Housing Capital Fund by 10%, or $194 million.  This is less than PHAs’ annual capital needs and does nothing to reduce public housing's $26 billion modernization backlog.  In transportation, the bill undermines the Federal Aviation Administration’s (FAA) modernization efforts by cutting $100 million from the program. This harmful cut comes amidst congressional hearings investigating FAA’s modernization delays, which are largely due to Congress’ failure to appropriate adequate funds.  And, despite the recent crash of an Amtrak train and resulting deaths in Philadelphia along the heavily traveled Northeast corridor, this bill cuts Amtrak grants by $250 million below last year’s level.

The White House has threatened to veto this bill due to inadequate funding levels.  It is not clear when the Senate will vote on its version of this bill.  Much of the bill’s federal funding goes directly to state and local governments, which in turn employ many AFSCME members. 

House Approves Permanent Ban on State and Local Government Taxation of Internet Access

The House approved via voice vote the Permanent Internet Tax Freedom Act (PITFA) (H.R. 235).  AFSCME opposes this bill because it restricts state and local government taxing authority, which reduces the ability of state and local governments to raise funds to invest in needed infrastructure, education, health care, workforce programs, and other vital public services.  Federal involvement in states’ taxing authority is typically unwarranted, narrows the tax base, reduces revenues collected, and often leads to harmful unintended consequences.  In this case, the internet’s huge economic value, its vast and expanding importance to daily life, and the vague statutory definition of “internet access” makes this particular taxing prohibition especially troubling and will likely cause fiscal problems for state and local governments.  The current temporary ban on internet access taxes is scheduled to expire on September 30. AFSCME led union opposition to this bill and 12 unions signed a joint letter opposing it, including the AFL-CIO, AFSCME, AFT, NEA, and SEIU.

The lead Senate bipartisan sponsors of the Marketplace Fairness Act of 2015 (MFA) (S. 698), which allows state and local governments to require internet sellers of goods to collect sales tax, issued statements urging passage of both a temporary ban for internet access tax and MFA.  Sen. Dick Durbin (D-IL) said: “The Marketplace Fairness Act that would level the playing field for small businesses passed overwhelmingly in the Senate last Congress. … I hope we can move both measures as soon as possible.” Sen. Heidi Heitkamp (D-ND) said: “Let’s pass both of these needed bills together to help level the playing field and give small businesses, as well as individuals and families, fixes they deserve.”  AFSCME supports the Durbin-Heitkamp approach. 

House Workforce Protections Subcommittee Contemplates Changes to Fair Labor Standards Act Regulations

On Wednesday, the House Education and the Workforce’s Subcommittee on Workforce Protections held a hearing titled “Reviewing the Rules and Regulations Implementing Federal Wage and Hour Standards.” The hearing focused primarily on proposed changes to the Fair Labor Standards Act (FLSA) overtime rule expected from the U.S. Department of Labor (USDOL) in the coming weeks. The FLSA, passed in 1938, establishes the federal standards for minimum wage, overtime, recordkeeping, and youth employment in the private and public sectors. While all parties seemed to agree that the FLSA needs updating, the House majority and minority disagreed on needed policy changes. 

Currently, the FLSA requires employers to pay most employees overtime pay at one and one-half times their regular pay rate for the hours they work above 40 in a workweek. However, it exempts from overtime pay executive, administrative and professional employees who earn a weekly salary of at least $455 and have job duties that include managerial responsibilities or require the use of advanced knowledge. The USDOL is expected to raise the salary threshold, thus including an additional 6.1 million American workers eligible to receive overtime pay. The GOP majority panel members and their witnesses argued that allowing more employees to become eligible for overtime protections would be burdensome to businesses. They also said that employers could offer “comp time” — that is, give employees time off instead of overtime pay, which they insisted employees would prefer.  Seth Harris, former Deputy Secretary of Labor and a Democratic witness, noted that increasing the number of employees eligible to receive overtime pay would benefit local economies because when working people earn more, they spend more. Subcommittee Ranking Member Frederica Wilson (D-FL) stated that further erosion of the overtime rule would increase income inequality and harm an already weak middle class.  AFSCME fully supports the expansion of the overtime rule and legislation such as the Raise the Wage Act that would increase the minimum wage to $12.00 by 2020, and the Paycheck Fairness Act, which addresses gender income disparity. 

 

 

House Panel Examines Harm of Current Social Security Rules for Public Sector Retirees

The House Ways and Means Subcommittee on Social Security held a hearing highlighting the current inequities from the Windfall Elimination Provision (WEP) and proposals to modify WEP, such as the Equal Treatment of Public Servants Act of 2015 (H.R. 711).  The current WEP law can reduce up to $423 a month from Social Security benefits that a public sector employee duly earned by offsetting the alleged windfall they receive from an earned state or local pension accrued from work not covered by Social Security. AFSCME’s statement for the record also raised concerns about the current Government Pension Offset (GPO), which can cut or wipe out Social Security spousal benefits because the retiree received a non-Social Security covered public pension benefit. AFSCME called upon Congress to eliminate the harmful consequences and serious inequities of both these provisions by repealing both GPO and WEP. Click here to view AFSCME’s statement for the record.

DOL Issues Rule Requiring Employers to Report Consultations With “Persuader” Union Busters

On Wednesday, the U.S. Department of Labor (DOL) released a new rule that requires employers to report consultant or “persuader” agreements pertaining to union organizing campaigns. Unions are already required to report on their organizing expenditures.  “Workers should know who is behind an anti-union message. It’s a matter of basic fairness,” said U.S. Secretary of Labor Tom Perez. “Full disclosure of persuader agreements gives workers the information they need to make informed choices about how they pursue their rights to organize and bargain collectively.” The change will be applicable to arrangements, agreements and payments made on or after July 1, 2016.

Before the new rule, employers and their consultants only had to file reports when the consultants communicated directly with workers. The new rule closes this loophole, requiring employers to file reports even if the consultants are giving anti-union guidance to the employer without contacting employees directly.  This could include conducting union-avoidance meetings or providing written materials employers use to persuade workers to oppose unionizing.  AFL-CIO General Counsel Lynn Rhinehart noted: “I think employees would be interested to know the dollars being spent” on anti-union campaigns when their employers claim they cannot afford to give them raises.

GOP congressional leadership immediately issued a press release opposing this transparency rule.  House Education and the Workforce Committee Chairman John Kline (R-MN) and Health, Employment, Labor and Pensions Subcommittee Chairman Phil Roe (R-TN) blasted the DOL, claiming its rule somehow “will stifle debate and undermine the ability of workers to make a fully informed decision.” And, Chairmen Kline and Roe made clear their intention to “push back” against this rule. 

Congressional Briefing on Ending Immigration Raids Targeting Unaccompanied Children

A wide range of advocates for immigrant children spoke at a briefing on Capitol Hill this week to urge members of Congress to act immediately to address the serious issues impacting unaccompanied children seeking refuge in the U.S. Among the issues addressed was a call to end “rocket dockets” that abridge the due process rights of these children, and ceasing deportations targeting unaccompanied children and other vulnerable individuals.  Speakers representing educators and legal aid providers urged the federal government to put the safety and well-being of the tens of thousands of unaccompanied children first.  Rep. Linda Sanchez (D-CA), chair of the Congressional Hispanic Caucus, and Rep. Zoe Lofgren (D-CA), Ranking Member on the House Judiciary Subcommittee on Immigration and Border Security, discussed the Fair Day in Court for Kids Act (H.R. 4646; S. 2540), legislation introduced last month that would ensure access to counsel, legal orientation programs and post-release services to children and other groups in immigration proceedings. Rep. Lofgren declared: “Targeting women and children for deportation who are fleeing violence and persecution is wrong. Until we can be sure that no mother or child will face abuse, torture or death in their home country, the United States should end raids and deportations.” 

This Week, We Celebrate the Sixth Anniversary of the Affordable Care Act

Wednesday was the sixth anniversary of the enactment of the Affordable Care Act (ACA), a law that has survived two U.S. Supreme Court challenges and dozens of efforts by Congress to repeal it.  And while 31 states and the District of Columbia have expanded their Medicaid programs under the ACA, 19 states have failed to do so.  As a consequence, 4.4 million, mostly poor, working adults in these 19 states have been denied Medicaid coverage.

But during this anniversary week, we celebrate what the ACA has achieved.  Some 20 million Americans have gained health coverage due to the ACA.  More than 90% of Americans now have health coverage.  For millions more, their coverage is better.  The ACA improved Medicare prescription drug benefits for seniors and extended the solvency of the Medicare trust fund.  Out-of-pocket costs were eliminated for 39 million seniors and millions of others seeking preventive care such as certain cancer screenings, contraception and immunizations.  Annual and lifetime limits on insurance coverage have been eliminated, protecting those who experience a catastrophic illness or accident.  The law requires health insurers to provide rebates if the amount spent on health benefits is too low.

Like any major law, the ACA needs to be improved and strengthened.  While we have made some progress, such as delaying the implementation of the 40% tax on high cost, employer-provided insurance, we look forward to the day when we no longer expend so much energy defending the law and can turn our full energies to making it better.


 

January 15, 2016

  • Congressional Hearing on Puerto Rico’s Economic Crises
  • President Obama’s Final State of the Union
  • Hillary Clinton Proposes Tax Fairness for Multi-Millionaires
  • GOP Presidential Candidates’ Poverty Solutions Would Harm More Than Help
  • Legislation Threatens Federal Employees’ Workplace Protections


Congressional Hearing on Puerto Rico’s Economic Crises

On January 12, Senate Minority Leader Harry Reid (D-NV) wrote to Senate Majority Leader Mitch McConnell (R-KY) to propose a bipartisan Senate Task Force on Puerto Rico, composed of six to eight Senators, to develop a reasonable solution to the Commonwealth’s economic crisis by the end of February. Sen. McConnell has not responded.

On the same day, the House Subcommittee on Energy and Mineral Resources held a narrowly-focused hearing entitled Exploring Energy Challenges and Opportunities Facing Puerto Rico. The committee’s Republican leaders noted their committee lacks jurisdiction over bankruptcy and restructuring Puerto Rico’s debt. Similarly, it lacks jurisdiction to address other needed federal assistance for Puerto Rico, such as parity with states for funding Medicaid, Earned Income Tax Credits (EITC) and Child Tax Credits (CTC). Chairman Rob Bishop (R-UT) said “arguments being made that enacting Chapter 9 for Puerto Rico without broader fiscal reform are naïve” and that energy provisions would need to be part of any related legislative package. AFSCME continues to strongly advocate for Congress to enact legislation to address these issues before Puerto Rico’s fiscal problems worsen and default spreads. Another hearing is scheduled in the House Natural Resources Committee on January 26 that will focus on potential oversight or a control board. This hearing is more likely to address debt restructuring and bankruptcy issues.
(Marc Granowitter- mgranowitter@afscme.org)

President Obama’s Final State of the Union

President Obama delivered his final State of the Union address to Congress and the nation this week. The president focused on his vision for the future, which included the importance of unions in building a strong economy: “Middle-class families are not going to feel more secure because we allowed attacks on collective bargaining to go unanswered.” From the AFSCME blog on the speech (http://www.afscme.org/blog/the-state-of-our-union-afscme-strong): “Those words, though brief, tell volumes about the importance of strong unions in building the middle class and why we need to stand strong in the face of such attacks coming from Wall Street and corporate interests that are more concerned, as President Obama noted, about their quarterly earnings than improving the wages of hard-working people who help them make those profits.” The president also addressed workers’ retirement security, saying: “Social Security and Medicare are more important than ever; we shouldn’t weaken them, we should strengthen then.”

The president detailed many of the successes of his presidency, which include expanding health insurance, sustaining job growth, stemming the threat of Ebola, and bringing Osama bin Laden to justice. He also discussed using his remaining time as president to address pressing current challenges such as curbing gun violence, fighting ISIL and foreign policy threats, and creating a cleaner and safer environment. In discussing the economy, he pushed back on those peddling doom and gloom, saying: “The United States of America, right now, has the strongest, most durable economy in the world.” As he acknowledged persistent wage inequity he cited the longest streak of private-sector job creation in history, the auto industry’s best year ever, and 14 million new jobs. “Anyone claiming that America’s economy is in decline is peddling fiction,” he said. He also renewed his calls for an increase in the minimum wage, a new war on cancer, and immigration reform. In summation he said: “We’ve made progress. But we need to make more.”
(Ed Jayne- ejayne@afscme.org)

Hillary Clinton Proposes Tax Fairness for Multi-Millionaires

Hillary Clinton recently announced new federal tax proposals to ensure multi-millionaires pay their fair share. First, she proposed a "Fair Share Surcharge," which would impose a four percentage point federal tax on annual earnings above $5 million. This is estimated to raise taxes on only about 2 of every 10,000 taxpayers. Second, she reiterated her support for a minimum federal tax rate of 30% on those annually earning above $1 million. This is typically labeled the "Buffett Rule," named after Warren Buffett who famously said millionaires should not pay a lower tax rate than their secretaries. Third, she would close egregious tax loopholes that allow multi-millionaires and their lawyers to exploit the tax code's gaps and ambiguities. For example, she would close the loophole on "carried interest," which allows private equity, hedge funds, and similar Wall Street fund managers to pay much lower tax rates on their earnings. She also would raise tax rates on capital gains from short-term stock trades. Fourth, she would reform the estate tax on multi-millionaires by returning it to the more progressive rules that applied in 2009 that had higher tax rates and fewer exemptions.

AFSCME supports her proposed tax reforms and loophole closures, which are expected to raise an estimated $500 billion during the next decade that could be used for domestic investments and job creation.
(Marc Granowitter- mgranowitter@afscme.org)

GOP Presidential Candidates’ Poverty Solutions Would Harm More Than Help

Last Saturday, House Speaker Paul Ryan (R-WI) moderated a forum for GOP presidential hopefuls to talk about poverty. Six candidates participated, although the top two contenders – Donald Trump and Ted Cruz – were not there. The consensus view was reached by participants that poverty is largely the fault of federal government programs, which in their view foster dependency and stop people from looking for jobs. Their solution is to convert the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) and other dependable safety net programs that expand when poverty grows, into a “block grant” to states. Under this scenario, states would receive a fixed amount of federal funding that would not increase even when need explodes, as it did during the recent Great Recession. This would leave cash-strapped states and local governments to decide between pulling funds from schools, law enforcement, infrastructure and other key priorities to meet basic nutritional needs, or allow very low-income families – including millions of children – to go hungry. Instead of proposing policies that will exacerbate poverty, the GOP presidential candidates and congressional leadership should support policies that tackle the unprecedented, growing concentration of wealth at the top that harm everyone else. The top 1% and profitable corporations should be required to pay their fair share of taxes and no longer be allowed to use loopholes that keep their taxes low. A fairer tax system would not only provide additional resources for SNAP and other federal anti-poverty safety net programs, it would also expand the shrinking middle class.
(Fran Bernstein- fbernstein@afscme.org)

Legislation Threatens Federal Employees’ Workplace Protections

Federal workers’ current workplace protections would be significantly weakened by legislation passed on January 12 by the House Committee on Oversight and Government Reform. The committee voted 20 to 16 along party lines to approve Rep. Ken Buck’s (R-CO) H.R. 3023, which would lengthen most federal workers’ probationary period from one to two years. Furthermore, this probation would start after certain training periods are completed and licenses obtained. The committee earlier voted on party lines to reject two helpful Democratic amendments to replace the bill with a report on the issue and affirmation of a one-year probation period. The committee also approved by voice vote Chairman Jason Chaffetz’s (R-UT) amended Official Personnel File Enhancement Act (H.R. 4360), which would require a federal agency to record any adverse findings from a resolved investigation in a former employee’s official personnel file. Chairman Chaffetz withdrew the harmful The Administration Leave Reform Act (H.R. 4359), which would set a 14-day limit for a federal employee to serve administrative leave for reasons related to misconduct or poor performance. AFSCME opposes these three bills because they would weaken sensible safeguards protecting federal workers.

The committee approved by voice vote the Government Neutrality in Contracting Act (H.R. 1671), which would repeal President Obama’s Executive Order 13502 that provides agencies with the authority to require “project labor agreements” on federal government construction projects. AFSCME opposes this bill.
(Marc Granowitter- mgranowitter@afscme.org)

 

Union Plus scholarships ranging from $500 to $4,000 are available for union members and their children. The 2016 Union Plus Scholarship application deadline is Sunday, January 31, 2016.

 

The Union Plus Scholarship Difference:

Above: Irrawaddy Lamouth, AFSCME Local 685, 2011 Union Plus Scholarship recipient

Union Plus Scholarship Program

Since 1992, the Union Plus Scholarship Program has awarded more than $3.7 million to students of working families who want to begin or continue their post-secondary education. Over 2,500 families have benefited from our commitment to higher education. The Union Plus Scholarship Program is offered through the Union Plus Education Foundation, funded in part by donations from the provider of the Union Plus Credit Card. (You do not need to be a Union Plus Credit Card holder to apply for this scholarship.)

See eligibility in the tab below.

Outstanding Scholarship Recipients

Congratulations to the 2015 scholarship winners.  This year, 106 union members and union family members have been awarded $150,000 in scholarships, ranging from $500 to $4,000.

The students selected for university, college, trade school or technical scholarships represent a wide sampling of backgrounds, union affiliations, goals and accomplishments. The selection process is very competitive since we receive over 5,000 applications each year.

How does the Union Plus Scholarship Program work?

Evaluation criteria:

This is a competitive scholarship. Applicants are evaluated according to academic ability, social awareness, financial need and appreciation of labor. A GPA of 3.0 or higher is recommended.

The required essays can account for up to half your total score.

Scholarship applicants are judged by a committee of impartial post-secondary educators.

Application Timeline:

Applications are available starting in mid-June, and a complete application must be received on or before 12:00 p.m. (Eastern Time) on January 31, 2016. Applications received after this deadline will not be considered.

Scholarship Award Amounts:

Amounts range from $500 to $4,000. These one-time cash awards are for study beginning in the Fall of 2015. Students may re-apply each year.

Award date:

The Scholarship Committee will determine recipients of scholarship awards by May 31 each year. During the first week of June award recipients will be individually notified by mail, and all applicants will be sent an email with notification that the award list is posted here. Please note that due to the volume of applications we cannot provide any information on the status of an application before award announcements are made.

Eligibility

  • Current and retired members of participating unions, their spouses and their dependent children (as defined by IRS regulations). At least one year of continuous union membership by the applicant, applicant's spouse or parent (if applicant is a dependent). The one year membership minimum must be satisfied by May 31, 2016.
  • Participating union members from the U.S., Puerto Rico, Guam and the U.S. Virgin Islands and Canada are eligible.  But students must attend an U.S. accredited college.
  • Union members do not have to purchase any Union Plus program product or participate in any Union Plus programs to apply for the scholarships and scholarship awards are not based upon participation in a Union Plus program.
  • The applicant must be accepted into a U.S. accredited college or university, community college or technical or trade school at the time the award is issued. Awards must be used for the 2015 - 2016 school year.
  • Undergraduate and graduate students are eligible.
  • Your application must be complete and received by 12:00 p.m. (Eastern Time) on Saturday, January 31, 2015.

Help more union families reach their education goals

 

Donate Now to the Union Plus Education Foundation