***Weekly Update***
From Legislative Committee Chair: Todd Kolden, Aberdeen Central Office
Week of June 4th, 2007
MINIMUM WAGE INCREASE SIGNED BY PRESIDENT - CONGRESS TO RECONVENE SESSION THIS WEEK
• President Bush on May 25 signed an Iraq war supplemental spending bill that also included language to increase the minimum wage in phases. Under the new law, the minimum wage would increase from its current level of $5.15 an hour to $5.85 an hour within 60 days of enactment and to $7.25 an hour within two years of enactment. Included with the wage hike are a number of business tax relief provisions including an extension to August 31, 2011, of the Work Opportunity Tax Credit (WOTC). The legislation also would expand eligibility to individuals under WOTC by more broadly defining qualifying veterans, first-year wage earners, high-risk youth and those workers referred through the vocational rehabilitation system.
• Congress reconvenes this week following its one-week recess in observance of the Memorial Day holiday. Working to approve appropriations bills tops the to do list, with the fiscal year 2008 labor program spending bill expected to be considered early in June, possibly the week of June 11. Based on comments from Congressional staff and input from other Washington based workforce system advocates, the workforce system in fiscal year 2008 is expected to be funded at the same levels as fiscal year 2007. However, discussion is reportedly continuing in the House on whether to adopt a smaller portion of the Administration's $335 million rescission to Workforce Investment Act programs. The request to rescind $335 million in WIA funding is included in the Administration's fiscal year 2008 Budget.
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Week of June 25th, 2007
VIRGINIA SENATOR REQUESTS ADDITIONAL FUNDING FOR UI PROGRAM OPERATIONS
United States Senator Jim Webb (D-VA) last week sent a letter to the Chairman and Ranking Member of the Senate Committee on Appropriations requesting an additional $300 million in fiscal year 2008 for Unemployment Insurance (UI) program administration. In his letter, Senator Webb expresses concern that the Virginia Employment Commission (VEC) may have to close offices due to the inadequacy of annual federal appropriations for UI program administration. Senator Webb's letter says evidence the federal government has been under-funding state administration of UI is persuasive and cites a presentation developed by NASWA for U.S. House of Representatives staff showing the appropriation for UI operations has not been adjusted for inflation since 1995. In addition to the letter, Senator Webb's office issued a press release which was subsequently covered by at least one newspaper.
The letter from Senator Webb is the second in as many months from Members of Congress concerned with the under funding of the UI program. In mid-May, Congressman Jim McDermott (D-WA), Chairman of the House Subcommittee on Income Security and Family Support, sent a letter to the Chairman and Ranking Member of the House Appropriations Committee to request additional funding for UI operations. Both letters request amounts states believe is necessary consistent with the Resource Justification Model (RJM).
The House Labor, Health and Human Services and Education Appropriations Subcommittee the week of June 11 approved by bipartisan voice vote its spending bill to fund the workforce system including $2.551 billion for UI state operations, the same amount requested by the Administration. The House Committee on Appropriations has postponed consideration of the bill originally scheduled this week to an as yet unscheduled date. The Senate Labor, HHS and Education Appropriations Subcommittee is expected to approve its fiscal year 2008 spending bill for the workforce system before the beginning of the August Congressional recess.
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